3.22.3 Individual Income Tax Returns 3.22.3.1 Program Scope and Objectives 3.22.3.1.1 Background 3.22.3.1.2 Authority 3.22.3.1.3 Responsibilities 3.22.3.1.4 Program Management and Review 3.22.3.1.5 Program Controls 3.22.3.1.6 Related Resources 3.22.3.1.7 Forms 3.22.3.1.8 Acronyms 3.22.3.1.9 Organization of Text 3.22.3.2 General Guidelines for Tax Examiners 3.22.3.3 International Returns 3.22.3.4 Form 1042-S Income Codes 3.22.3.5 United States Income Reporting Requirements 3.22.3.6 Dual-Status - General Information 3.22.3.7 Streamlined Filing Compliance Procedures 3.22.3.7.1 Form 1040-NR, Form 1040-SS (sp), and Form 1040-SS Submitted Using the Streamlined Filing Compliance Procedures 3.22.3.7.2 Amended or Duplicate Returns Submitted Using the Streamlined Filing Compliance Procedures 3.22.3.7.3 Corresponding on Returns Submitted Using the Streamlined Filing Compliance Procedures 3.22.3.7.3.1 Types of Correspondence for Returns Submitted Using the Streamlined Filing Compliance Procedures 3.22.3.7.3.2 Replies to Correspondence for Returns Submitted Using the Streamlined Filing Compliance Procedures 3.22.3.8 Form 1040 With Form 2555 - Purpose of Form 3.22.3.9 U.S. Territories - General Information 3.22.3.9.1 The American Jobs Creation Act of 2004 3.22.3.9.1.1 Form 8898 - Statement for Individuals Who Begin or End Bona Fide Residence in a United States Possession 3.22.3.9.2 American Samoa - General Information 3.22.3.9.2.1 American Samoa (AS) - Which Returns To File 3.22.3.9.2.1.1 Processing Form 1040 With Income or Address From American Samoa 3.22.3.9.2.1.2 Form 4563 - Exclusion of Income for Bona Fide Residents of American Samoa 3.22.3.9.3 Commonwealth of the Northern Mariana Islands (CNMI) - General Information 3.22.3.9.3.1 CNMI - Which Returns To File 3.22.3.9.3.1.1 Processing Form 1040 With Income or Address From CNMI 3.22.3.9.3.1.2 Form 5074 - Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI) 3.22.3.9.4 Guam - General Information 3.22.3.9.4.1 Guam - Which Returns To File 3.22.3.9.4.1.1 Processing Form 1040 With Income or Address From Guam 3.22.3.9.4.1.2 Form 5074 - Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI) 3.22.3.9.5 Puerto Rico (PR) - General Information 3.22.3.9.5.1 Puerto Rico (PR) - Which Returns To File 3.22.3.9.5.2 Processing Form 1040 With Income or Address From Puerto Rico (PR) 3.22.3.9.6 United States Virgin Islands (USVI) - General Information 3.22.3.9.6.1 United States Virgin Islands - Which Returns To File 3.22.3.9.6.1.1 Processing Form 1040 With Income or Address From United States Virgin Islands 3.22.3.9.6.1.2 Form 8689 - Allocation of Individual Income Tax to the United States Virgin Islands 3.22.3.9.6.1.3 Form 1040 in Compliance With Notice 2007-19 3.22.3.9.6.1.3.1 Processing Form 1040 Filed With the IRS in Compliance With Notice 2007-19 3.22.3.9.6.1.4 Form 1040 in Compliance with Notice 2007-31 3.22.3.9.6.1.4.1 Processing Form 1040 in Compliance with Notice 2007-31 3.22.3.9.7 Processing U.S. Virgin Islands (VI) Cover Over Program Form 1040 3.22.3.10 Form 1040-SS and Form 1040-SS (sp) 3.22.3.11 Form 1040-NR 3.22.3.11.1 Resident Alien - General Information 3.22.3.11.2 Nonresident Alien - General Information 3.22.3.11.3 Form 1040-NR Country of Residence 3.22.3.11.4 Scholarship or Fellowship Grants Income 3.22.3.11.5 Article XXV - United States and Canada Income Tax Treaty 3.22.3.11.6 Expatriation and Form 8854 3.22.3.11.7 Community Property - General Information 3.22.3.11.8 Tax Treaties - General Information 3.22.3.11.8.1 Types of Visas - General Information 3.22.3.11.8.2 Survivor Benefit Annuities (SBAs) and Survivor Benefit Plans (SBPs) 3.22.3.12 Correspondence Procedures 3.22.3.12.1 Missing Signature 3.22.3.13 Late Filed Returns/Reasonable Cause 3.22.3.14 Special Procedures 3.22.3.14.1 Refund Schemes 3.22.3.14.2 Amount Reported in Foreign Currency on U.S. Individual Tax Return 3.22.3.14.3 Conversion of Form 1040-NR-EZ to Form 1040-NR 3.22.3.14.4 Multiple Filers on the Same Return Form 1040-NR 3.22.3.15 Section 01 Data-Entity and Miscellaneous Information 3.22.3.15.1 Error Record Format-Section 01 3.22.3.15.2 Correction Procedures Section 01 3.22.3.15.3 Field 01PS - Primary TIN 3.22.3.15.4 Field 01NL1 First Name Line - 35 Positions 3.22.3.15.5 Field 01NL2 Second Name Line - 35 Positions 3.22.3.15.6 Field 01ADD Street Address 35 Positions 3.22.3.15.7 Field 01C/S City/State - 24 Characters 3.22.3.15.8 Field 01ZIP Zip Code- 5 Positions 3.22.3.15.9 Field 01TXP Tax Period - 6 Positions 3.22.3.15.10 Field 01COU Country Code - 2 Positions 3.22.3.15.11 Field 01SPC Special Processing Code 3.22.3.15.12 Field 01FSC Filing Status Code - 1 Position 3.22.3.15.13 Field 01CCC Computer Condition Code (CCC) - 10 Positions 3.22.3.15.14 Field 01RCD Received Date - 8 Positions 3.22.3.15.15 Field 01EXC Exemption Codes 3.22.3.15.16 Field 01FPC Form Processing Code (FPC) - 10 Positions 3.22.3.15.17 Field 01RPC Return Processing Code (RPC) - 8 Positions 3.22.3.15.18 ERS Action Code - 3 Positions 3.22.3.15.19 Field 01ACD Audit Codes - 10 Positions 3.22.3.16 Section 02 - Form 3471 (Edit Sheet) and ERS Validation 3.22.3.16.1 Error Record Format-Section 02 3.22.3.16.2 Form 3471 - Unallowables on International Tax Returns 3.22.3.16.3 Field 0208 Form 4563 Indicator 3.22.3.17 Section 03 - Simplified Tax Return 3.22.3.17.1 Error Record Format-Section 03 3.22.3.17.2 Fields 03WG - W-2 Wages 3.22.3.17.3 Field 03TEX - Total Income Exempt by Treaty 3.22.3.17.4 Field 03TWG Total Wages 3.22.3.17.5 Field 03TEI Tax Exempt Interest 3.22.3.17.6 Field 03INT Taxable Interest 3.22.3.17.7 Field 03QD Qualified Dividends 3.22.3.17.8 Field 03DIV Ordinary Dividends 3.22.3.17.9 Fields 03GIR and 03TIR Gross and Taxable IRA Distribution 3.22.3.17.10 Fields 03GPA and 03TPA Gross and Taxable Pensions and Annuities 3.22.3.17.11 Field 03CGL Schedule D Profit/Loss 3.22.3.17.12 Field 03ADD Additional Income 3.22.3.17.13 Field 03TOT Total Income 3.22.3.17.14 Fields 03SFE Scholarship or Fellowship Grants Excluded 3.22.3.17.15 Field 03TAJ Total Adjustments 3.22.3.17.16 Field 03AGI Adjusted Gross Income (AGI) 3.22.3.17.17 Field 03NCC Non Itemized Charitable Contribution Deduction 3.22.3.17.18 Field 03QBI Qualified Business Income Deduction 3.22.3.17.19 Field 03INC Taxable Income 3.22.3.17.20 Field 03TTX Tentative Tax 3.22.3.17.21 Field 03AF Additional Form 8814 attached (ERS only) 3.22.3.17.22 Field 03AT Additional Form 8814 Tax (ERS only) 3.22.3.17.23 Field 03HCR Form 8885 Health Coverage Recapture Amount (ERS Only) 3.22.3.17.24 Field 03COD Child Tax and Other Dependent Credit Amount 3.22.3.17.25 Field 03NRC Total Statutory Credits 3.22.3.17.26 Field 03TNC Tax On Not Effectively Connected Income (NEC) 3.22.3.17.27 Field 03OTX Total Other Taxes 3.22.3.17.28 Field 03GTT Gross Transportation Tax 3.22.3.17.29 Field 03TAX Total Tax 3.22.3.17.30 Field 03WH Withholding 3.22.3.17.31 Field 0325E Form 8805 Withholding 3.22.3.17.32 Field 0325F Form 8288-A Withholding 3.22.3.17.33 Fields 0325G/0318B Form 1042-S Withholding 3.22.3.17.34 Fields 03ESP Estimated Tax Payments 3.22.3.17.35 Field 03ACT Additional Child Tax Credit/Refundable Child Tax Credit 3.22.3.17.36 Fields 0329/0320 Credit for amount paid with Form 1040-C 3.22.3.17.37 Field 03RCR Refundable Credits 3.22.3.17.38 Field 03PAY Total Payments 3.22.3.17.39 Field 03BDR Balance Due/Refund 3.22.3.17.40 Field 03CEL Estimated Tax Credit Elect 3.22.3.17.41 Field 03ETP Pre-Determined Estimated Tax Penalty 3.22.3.17.42 Field 03AI Third Party Authorization Indicator 3.22.3.17.43 Field 03TPN Third Party Designee Name 3.22.3.17.44 Field 03TPI Third Party Designee ID Number 3.22.3.17.45 Field 03EMW E-FIle Mandate Waiver Indicator 3.22.3.17.46 Field 03PT Preparer TIN 3.22.3.17.47 Field 03PE Preparer EIN 3.22.3.17.48 Field 03PC Preparer Code 3.22.3.17.49 Field 03PTN Preparer Telephone Number 3.22.3.18 Section 04 - Additional Income and Adjustments to Income 3.22.3.18.1 Error Record Format - Section 04 3.22.3.18.2 Fields 0401/0404 - State Income Tax Refund 3.22.3.18.3 Field 0403 Combined Schedule C Profit/Loss 3.22.3.18.4 Field 0404 Other Gains/Losses 3.22.3.18.5 Field 0405 Schedule E Income/Loss 3.22.3.18.6 Field 0406 Combined Schedule F Profit/Loss 3.22.3.18.7 Field 0407 Taxable Unemployment 3.22.3.18.8 Field 04SFG - Scholarship or Fellowship Grants 3.22.3.18.9 Field 04OTI Other Income 3.22.3.18.10 Field 04RTA Form 982 Indicator 3.22.3.18.11 Field 04EDU Educator Expense 3.22.3.18.12 Field 04CBE Reservist and Other Business Expenses Amount 3.22.3.18.13 Field 04HSA Health Savings Account Deduction 3.22.3.18.14 Field 04MOV Moving Expenses 3.22.3.18.15 Field 04DSE Deduction for Self-Employment Tax Amount 3.22.3.18.16 Field 04SEP SE Retirement Plans Deduction 3.22.3.18.17 Field 04HID Self Employed Health Insurance 3.22.3.18.18 Field 04PEW Penalty on Early Withdrawal of Savings 3.22.3.18.19 Field 04IRA IRA Deduction 3.22.3.18.20 Field 04SLI Student Loan Interest Deduction 3.22.3.18.21 Field 04MSA Archer MSA 3.22.3.18.22 Field 04ADJ Other Adjustments (dotted portion) 3.22.3.19 Section 05 - Additional Taxes, Additional Credits and Payments 3.22.3.19.1 Error Record Format-Section 05 3.22.3.19.2 Field 05201 Alternative Minimum Tax 3.22.3.19.3 Field 05202 Advance Premium Tax Credit Repayment 3.22.3.19.4 Fields 05204 Combined Self-Employment Tax 3.22.3.19.5 Fields 05SSM Unreported Social Security and Medicare Tax for Form 4137 and Form 8919 3.22.3.19.6 Field 05IRA Tax on Early Distributions 3.22.3.19.7 Field 05HSH Combined Household Employment Taxes 3.22.3.19.8 Field 05FHB First Time Home Buyer Repayment from Form 5405 3.22.3.19.9 Field 05AMT Form 8959 Additional Medicare Tax 3.22.3.19.10 Field 05NIT Form 8960 Net Investment Income Tax 3.22.3.19.11 Field 05USS Uncollected Tax on Reported Tips 3.22.3.19.12 Field 05III Interest due on Installment Income (IRC 453 Tax , Code L) 3.22.3.19.13 Field 05IDT Interest on Deferred Tax (IRC 453 Tax, Code A) 3.22.3.19.14 Field 05LIR Form 8611 Recapture Tax 3.22.3.19.15 Field 05TAT Total Additional Taxes 3.22.3.19.16 Field 05CTR Schedule 8812 Additional Tax 3.22.3.19.17 Field 05965 Section 965 Tax Installment 3.22.3.19.18 Field 05TL Section 965 Tax Liability (ERS Only) 3.22.3.19.19 Field 05301 Foreign Tax Credit 3.22.3.19.20 Field 05302 Credit for Child and Dependent Care Expenses 3.22.3.19.21 Field 05304 Retirement Savings Contribution Credit 3.22.3.19.22 Field 0505A Residential Clean Energy Credit 3.22.3.19.23 Field 0505B Energy Efficient Home Improvement Credit 3.22.3.19.24 Field 05GBC General Business Credits 3.22.3.19.25 Field 05PYM Credit for Prior Year Minimum Tax 3.22.3.19.26 Field 05ADC Adoption Credit Form 8839 3.22.3.19.27 Field 05AMC Alternative Motor Vehicle Credit Form 8910 3.22.3.19.28 Field 05CVC Clean Vehicle Credit Amount 3.22.3.19.29 Field 05MIC Mortgage Interest Credit Form 8396 3.22.3.19.30 Field 05POC Previously Owned Clean Vehicles Credit 3.22.3.19.31 Field 05OSC Other Statutory Credits 3.22.3.19.32 Field 05ONC Total Other Nonrefundable Credits 3.22.3.19.33 Field 05PTC - Reconciled Premium Tax Credit Amount 3.22.3.19.34 Field 05EXT Amount Paid with Request for Extension 3.22.3.19.35 Field 05ESS Excess Social Security Tax Withheld (SST)/Railroad Retirement Tax Withheld (RRTA) 3.22.3.19.36 Field 05FUE Fuel Tax Credit from Form 4136 3.22.3.19.37 Field 05RIC Form 2439 Regulated Investment Company Credit 3.22.3.19.38 Field 05SFL Sick and Family Leave Credit 3.22.3.19.39 Field 05HCC Form 8885 Health Coverage Tax Credit (ERS Only) 3.22.3.19.40 Field 05EYR Credit for Earlier Year Income Repayment 3.22.3.19.41 Field 05OTH Other Payment or Credit Amount 3.22.3.19.42 Field 05TYP Other Payment Credit Type Code 3.22.3.19.43 05RCC Refundable Child Care Credit 3.22.3.19.44 05SL2 Sick and Family Leave Credits after 03-31-2021 3.22.3.19.45 Field 05OPR Total Other Payments and Refundable Credits 3.22.3.20 Section 06 - Direct Deposit Information (EC 138 and 139) 3.22.3.21 Section 07 - Data-Itemized Deductions 3.22.3.21.1 Error Record Format-Section 07 3.22.3.21.2 General Correction Procedures - Itemized Deductions 3.22.3.21.2.1 Form 1040-NR - General Instructions for Itemized Deductions 3.22.3.21.2.2 Form 1040 - General Instructions for Itemized Deductions with IRC 933 3.22.3.21.2.3 Dual-status - General Instructions for Itemized Deductions 3.22.3.21.3 Field 0701A - State and Local Income Taxes Deduction Form 1040-NR 3.22.3.21.4 Field 0702 - Cash Contributions 3.22.3.21.5 Fields 0703/0704 - Other Contributions/Carry-Over Contributions 3.22.3.21.6 Field 0705 - Total Contributions 3.22.3.21.7 Field 0706 - Total Casualty/Theft Loss 3.22.3.21.8 Field 0707 - Other Itemized Deductions 3.22.3.21.9 Field 0708 - Total Itemized Deductions Form 1040-NR 3.22.3.22 Section 08 - Schedule B 3.22.3.23 Sections 09, 10 and 11 - Schedule C and Part IV Form 1040-SS/Form 1040-SS (sp) 3.22.3.23.1 Error Record Format - Sections 09, 10 and 11 3.22.3.24 Section 12 - Schedule D 3.22.3.25 Section 13 - Schedule E 3.22.3.26 Sections 14 and 15 - Schedule F 3.22.3.27 Section 16 - Schedule R 3.22.3.28 Section 17/18 - Schedule SE 3.22.3.28.1 Field 1701A - Net Farm Profit/Loss 3.22.3.28.2 Field 1702 - Net Non-Farm Profit/Loss 3.22.3.28.3 Field 17TE - Tentative Earnings 3.22.3.28.4 Field 17MCD - SE Method Code 3.22.3.28.5 Field 17SEV - Self-Employment Tax Verified 3.22.3.29 Section 19 - Form 1116 3.22.3.30 Section 20 - Schedule J 3.22.3.31 Section 21 - Form 2441 3.22.3.32 Section 22 - Form 3800 3.22.3.33 Section 23 - Form 3800 3.22.3.34 Sections 24 and 25 - Form 4137 3.22.3.35 Section 26 - Form 4684 3.22.3.36 Section 27 - Form 4797 3.22.3.37 Section 28 - Form 4972 3.22.3.38 Sections 29 and 30 - Form 5329 3.22.3.39 Section 31 - Form 6198 3.22.3.40 Section 32 - Form 6251 3.22.3.41 Section 33 - Form 8615 3.22.3.42 Section 34 and Section 35 - Form 2555 3.22.3.42.1 General Requirements for Form 2555 (Section 34 and 35) 3.22.3.42.2 Field and Money Amounts 3.22.3.42.3 Error Record Format - Section 34/35 3.22.3.42.4 Correction Procedures 3.22.3.42.5 Field 34POD Post of Duty Code 3.22.3.42.6 Field 34BD1 Beginning Date Bona Fide Residence 3.22.3.42.7 Field 34ED1 Ending Date Bona Fide Residence 3.22.3.42.8 Field 34DIN Declaration Indicator 3.22.3.42.9 Field 3414R Number of Days in United States on Business (Bona Fide Residence) 3.22.3.42.10 Field 34BD2 Beginning Date Physical Presence 3.22.3.42.11 Field 34ED2 Ending Date Physical Presence 3.22.3.42.12 Field 3418R Number of Days in United States on Business (Physical Presence) 3.22.3.42.13 Field 3419 Form 2555/Form 2555-EZ Wages 3.22.3.42.14 Field 3422G Total Allowance 3.22.3.42.15 Field 3425 Meals and Lodging 3.22.3.42.16 Field 3433 Housing Expenses 3.22.3.42.17 Field 3436 Housing Exclusion 3.22.3.42.18 Field 3442 Foreign Earned Income Exclusion 3.22.3.42.19 Field 3445 Housing Exclusion 3.22.3.42.20 Field 3450 Housing Deduction 3.22.3.43 Section 37 - Form 4835 3.22.3.44 Section 38 - Form 8839 3.22.3.45 Section 39 - Form 8853 3.22.3.46 Sections 40, 41 and 42 - Form 8814 3.22.3.47 Section 43 - Schedule EIC 3.22.3.48 Sections 44 and 45 - Schedule H 3.22.3.49 Section 46 - Schedule NEC 3.22.3.49.1 General Information 3.22.3.49.2 Error Record Format Section 46 3.22.3.49.3 Field 46TR1 Tax Rate Income Taxpayer Percentage 3.22.3.49.4 Field 46TR2 Tax Rate Income Taxpayer Percentage 3.22.3.49.5 Field 4613A - 10 Percent Tax Rate Total Income 3.22.3.49.6 Field 4613B 15 Percent Tax Rate Total Income 3.22.3.49.7 Field 4613C Percent Tax Rate Total Income 3.22.3.49.8 Field 46131 XX Percent Tax Rate Total Income 3.22.3.49.9 Field 46132 YY Percent Tax Rate Total Income 3.22.3.49.10 Field 46OM1 Effectively Connected Income First Year Election Indicator 3.22.3.49.11 Field 46OM2 Effectively Connected Income Continuing Election Indicator 3.22.3.50 Section 47 - Schedule 8812 and Part II, Form 1040-SS (sp)/SS, Refundable Child Tax Credit 3.22.3.50.1 Error Record Format - Section 47 3.22.3.50.2 Additional Child Tax Credit/Refundable Child Tax Credit- Puerto Rico 3.22.3.50.3 Field 47PRI - Puerto Rico Sourced Income (Form 1040-SS (sp)/Form 1040-SS Only) 3.22.3.50.4 Field 47SSM - Total Social Security and Medicare Tax Withheld (Form 1040-SS (sp)/Form 1040-SS Only) 3.22.3.51 Sections 48 and 49 - Form 8606 3.22.3.52 Section 50 - Form 8863 3.22.3.53 Section 51 - Form 4952 3.22.3.54 Sections 52 and 53 - Form 8889 3.22.3.55 Section 54 - Form 8880 3.22.3.56 Section 55 - Form 8995/Form 8995-A 3.22.3.57 Section 56 - Form 8888 3.22.3.58 Section 57 - Form 8978 3.22.3.59 Section 58- Form 5405 First Time Home Buyer Credit/Repayment 3.22.3.60 Sections 61 and 62 - Form 8919 3.22.3.61 Section 63 - Form 8958 3.22.3.62 Section 64 - Reserved 3.22.3.63 Section 65 and 66 - Form 8941 3.22.3.64 Section 67 - Form 6252 3.22.3.65 Section 68 - Form 8910 3.22.3.66 Section 69 - Form 8936 and Form 8936 Schedule A 3.22.3.67 Section 70 - Form 8867 3.22.3.67.1 Error Record Format, Section 70 3.22.3.68 Section 71 - Form 8959 3.22.3.68.1 Error Record Format - Section 71 3.22.3.69 Section 72 - Form 8960 3.22.3.69.1 Error Record Format - Section 72 3.22.3.70 Section 73 - Form 8962, Page 1 3.22.3.70.1 Error Record Format - Section 73 3.22.3.71 Section 74 - Form 8962, Page 2 3.22.3.71.1 Error Record Format - Section 74 3.22.3.72 Section 75- Form 5695 3.22.3.73 Section 76 - Form 965-A 3.22.3.74 Section 77 - Schedule LEP or Form 9000 3.22.3.75 Section 78 Form 8997 Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments 3.22.3.76 Section 79- Form 4136 3.22.3.77 Section 94 - ERS Only Verified Fields 3.22.3.77.1 Error Record Format - Section 94 3.22.3.77.2 Field 94EXV Exemption Verified 3.22.3.77.3 946EV Child Tax Credit Under Six Total Eligible Verified Number 3.22.3.77.4 94SEV Deduction for SE Tax Verified 3.22.3.77.5 94IRV IRA Deduction Verified 3.22.3.77.6 94SLV Student Loan Interest Deduction Verified 3.22.3.77.7 Field 94INV Taxable Income Verified 3.22.3.77.8 Field 94TTV Tentative Tax Verified 3.22.3.77.9 94ARV Advance Premium Tax Credit Repayment Verified 3.22.3.77.10 94RTV Retirement Savings Contribution Verified 3.22.3.77.11 Field 94CDV Child Tax and Other Dependent Credit Verified 3.22.3.77.12 Field 94NRV Total Statutory Credits Verified 3.22.3.77.13 Field 94TXV Total Tax Verified 3.22.3.77.14 Field 94AIV Additional Child Tax Credit Earned income Verified Amount 3.22.3.77.15 Field 94ACV Additional Child Tax Credit Verified 3.22.3.77.16 94PTV Premium Tax Credit Verified 3.22.3.77.17 94RCV Refundable Child Care Credit Verified 3.22.3.78 Error Code 001 - End of Year Reformat 3.22.3.78.1 Field Displayed - EC 001 3.22.3.79 Error Code 002 - Statute of Limitations (PY) 3.22.3.79.1 Fields Displayed - EC 002 3.22.3.80 Error Code 003 - Check Digits/P-SSN 3.22.3.80.1 Fields Displayed - EC 003 3.22.3.81 Error Code 004 - Name Control Mismatch/National Accounts Profile (NAP) 3.22.3.81.1 Fields Displayed - EC 004 3.22.3.81.2 Returns Filed Using the Streamlined Filing Compliance Procedures (EC 004) 3.22.3.81.3 Correction Procedures - Form 1040-NR (EC 004) 3.22.3.82 Error Code 005 - Primary Name Control/TIN Match on Invalid Side 3.22.3.82.1 Fields Displayed - EC 005 3.22.3.82.2 Returns Filed Using the Streamlined Filing Compliance Procedures (EC 005) 3.22.3.83 Error Code 006 - First-Time Filers 3.22.3.83.1 Fields Displayed - EC 006 3.22.3.84 Error Code 007 - Address Information Different 3.22.3.84.1 Fields Displayed - EC 007 3.22.3.85 Error Code 008 - Marital Filing Status Change 3.22.3.85.1 Fields Displayed - EC 008 3.22.3.86 Error Codes 009 - Entity Data and Check Digit/Name Control 3.22.3.86.1 Fields Displayed - EC 009 3.22.3.87 Error Code 010 - Missing Spouse or Dependent TIN 3.22.3.87.1 Fields Displayed - EC 010 3.22.3.87.2 Returns Filed Using the Streamlined Filing Compliance Procedures 3.22.3.87.3 Correction Procedures - EC 010 3.22.3.87.3.1 Form 1040-NR - Correction Procedures Missing TIN for Spouse 3.22.3.87.3.2 Form 1040-NR - Correction Procedures Missing TIN for Dependent 3.22.3.88 Error Code 011 - NAP Access Indicator 3.22.3.88.1 Fields Displayed - EC 011 3.22.3.89 Error Code 012 - Spouse/Dependent TIN Validation 3.22.3.89.1 Fields Displayed - EC 012 3.22.3.89.2 Returns Filed Using the Streamlined Filing Compliance Procedures (EC 012) 3.22.3.89.3 Correction Procedures - EC 012 3.22.3.89.3.1 Form 1040-NR - Correction Procedures Spouse TIN Validation 3.22.3.89.3.2 Form 1040-NR - Correction Procedures TIN Validation for Dependent 3.22.3.89.3.3 Form 1040-SS (sp)/Form 1040-SS - Claiming Additional Child Tax Credit 3.22.3.90 Error Code 013 - Duplicate TINs 3.22.3.90.1 Fields Displayed - EC 013 3.22.3.91 Error Code 014 - Entity Data 3.22.3.91.1 Field Displays - EC 014 3.22.3.92 Error Code 016 - FSC 2 No Ampersand 3.22.3.92.1 Fields Displayed - EC 016 3.22.3.93 Error Code 017 - ITIN Expiration 3.22.3.93.1 Fields Displayed - EC 017 3.22.3.93.2 Correction Procedures - EC 017 Form 1040-SS and Form 1040-SS (sp) 3.22.3.93.3 Correction Procedures - EC 017 Form 1040-NR 3.22.3.94 Error Code 018 - Date of Death Is Prior to Tax Period 3.22.3.94.1 Fields Displayed - EC 018 3.22.3.94.2 Correction Procedures - EC 018 for Form 1040 3.22.3.94.3 Correction Procedures - EC 018 for Form 1040-NR 3.22.3.95 Error Code 019 - Date of Birth is Greater Than Tax Period 3.22.3.95.1 Fields Displayed - EC 019 3.22.3.96 Error Codes 020 - Major City Code 3.22.3.96.1 Fields Displayed - EC 020 3.22.3.97 Error Code 021 - Major City Code/ZIP Code 3.22.3.97.1 Field Displays - EC 021 3.22.3.98 Error Code 022 - State Code/ZIP Code 3.22.3.98.1 Fields Displayed - EC 022 3.22.3.99 Error Code 023 - Reserved 3.22.3.100 Error Code 024 - Form 1040/ Form 2555 without FLC 20 3.22.3.100.1 Fields Displayed EC 024 3.22.3.100.2 Invalid Conditions - EC 024 3.22.3.100.3 Correction Procedures - EC 024 3.22.3.101 Error Code 025 - Post of Duty Code 3.22.3.101.1 Fields Displayed - EC 025 3.22.3.101.2 Invalid Conditions - EC 025 3.22.3.101.3 Correction Procedures - EC 025 3.22.3.102 Error Code 026 - Computer Condition Code "L" or "W" is Present 3.22.3.102.1 Fields Displayed - EC 026 3.22.3.103 Error Code 027 - Reserved 3.22.3.104 Error Code 028 - Decedent Return Check 3.22.3.104.1 Fields Displayed - EC 028 3.22.3.105 Error Code 029 - Unclaimed Credits 3.22.3.105.1 Fields Displayed - EC 029 3.22.3.106 Error Code 030 - ITIN Filers with Form W-2 3.22.3.106.1 EC 030 - Fields Displayed 3.22.3.107 Error Code 032 - FSC 2/6 Exemptions 3.22.3.107.1 Fields Displayed - EC 032 3.22.3.108 Error Code 034 - FSC 4 or 5 - Exemptions 3.22.3.109 Fields Displayed - EC 034 3.22.3.110 Error Code 038 - Reserved 3.22.3.111 Error Code 042 - Received Date 3.22.3.111.1 Fields Displayed - EC 042 3.22.3.112 Error Code 044 - Tax Period/Received Date 3.22.3.112.1 Fields Displayed - EC 044 3.22.3.112.2 Correction Procedures - EC 044 3.22.3.113 Error Code 046 - Fiscal Year Tax Period 3.22.3.114 Error Code 048 - Amended Return 3.22.3.114.1 Fields Displayed - EC 048 3.22.3.115 Error Code 050 - Preparer's Code 3.22.3.116 Error Code 051 - CCC "L" or "W" - FLC 20 (International Only) 3.22.3.116.1 Fields Displayed - EC 051 3.22.3.116.2 Invalid Conditions - EC 051 3.22.3.116.3 Correction Procedures - EC 051 3.22.3.117 Error Code 052 - CCC "F" or "9" - FSC 2 3.22.3.117.1 Fields Displayed - EC 052 3.22.3.118 Error Code 053 - FSC 2/ DECD 3.22.3.119 Error Code 054 - RPC C Filing Status 3.22.3.119.1 Fields Displayed - EC 054 3.22.3.120 Error Code 056 - FSC 2/CCC "F" or "9" 3.22.3.121 Error Code 058 - Return Processed Date (RPD) 3.22.3.122 Error Code 062 - Late Filing Code/Received Date 3.22.3.123 Error Code 064 - Pre-Determined Delinquency Penalty/Received Date 3.22.3.123.1 Fields Displayed - EC 064 3.22.3.124 Error Code 066 - Qualified Mortgage Insurance Premiums 3.22.3.125 Error Code 067 - Reconcile ACA Data 3.22.3.126 Error Code 070 - At-Risk Code-Schedule C 3.22.3.127 Error Code 072 - At-Risk Code-Schedule F 3.22.3.128 Error Code 073 - Schedule C/Schedule F At Risk 3.22.3.128.1 Fields Displayed - EC 073 3.22.3.129 Error Code 074 - Cash and Accrual 3.22.3.130 Error Code 075 to 084 3.22.3.131 Error Code 085 - Foreign Tax Credit Form 1116 3.22.3.131.1 Fields Displayed - EC 085 3.22.3.131.2 Error Code 085 - Foreign Tax Credit Form 1116 3.22.3.132 Error Code 087 Schedule SE and RPC N or S 3.22.3.133 Error Code 088 - Self-Employment Tax Liability 3.22.3.133.1 Correction Procedures - EC 088 - Form 1040 3.22.3.134 Error Code 089 - SE Method 3.22.3.134.1 Fields Displayed - EC 089 3.22.3.135 Error Code 090 - 093 3.22.3.136 Error Code 094 - SE SSN Not Equal to Secondary SSN 3.22.3.137 Error Codes 095 through 099 3.22.3.138 Error Code 100 - Form 8941, Primary or Secondary TIN Mismatch 3.22.3.139 Error Code 101 - Form 8941, SHOP Checkbox 3.22.3.140 Error Codes 102 through 113 3.22.3.141 Error Code 116 - Withholding Equals Regulated Investment Company Credit or Total Tax 3.22.3.141.1 Fields Displayed - EC 116 3.22.3.142 Error Code 118 - Withholding and Income Comparison 3.22.3.142.1 Fields Displayed - EC 118 3.22.3.142.2 Invalid Condition - EC 118 3.22.3.142.3 Correction Procedures - EC 118 3.22.3.143 Error Code 121 - Excess Social Security Tax (SST) and Railroad Retirement Tax (RRTA) 3.22.3.143.1 Field Displayed - EC 121 3.22.3.143.2 Correction Procedures - EC 121 3.22.3.144 Error Code 122 - CCC "G" , "B" or RPC "L" Not Present/Zero Return 3.22.3.144.1 Fields Displayed - EC 122 3.22.3.145 Error Code 123 - Non-Compute Code 2 and Preparer's Data Present 3.22.3.145.1 Fields Displayed - EC 123 3.22.3.146 Error Code 124 CCC "A" , "F" or "9" 3.22.3.147 Error Codes 130 - 146 3.22.3.148 Error Code 148 - Form 2555 Incompatible Residency Dates 3.22.3.148.1 Fields Displayed - EC 148 3.22.3.148.2 Invalid Conditions - EC 148 3.22.3.148.3 Correction Procedures - EC 148 3.22.3.149 Error Code 150 - Form 2555(Section 34), Residency Dates Missing 3.22.3.149.1 Fields Displayed - EC 150 3.22.3.149.2 Invalid Conditions - EC 150 3.22.3.149.3 Correction Procedures - EC 150 3.22.3.150 Error Code 152 - Form 2555 (Section 35), Residency Dates Missing 3.22.3.150.1 Fields Displayed - EC 152 3.22.3.150.2 Invalid Conditions - EC 152 3.22.3.150.3 Correction Procedures - EC 152 3.22.3.151 Error Code 154 - Form 2555 and Foreign Income Exclusion 3.22.3.151.1 Fields Displayed - EC 154 3.22.3.151.2 Invalid Conditions - EC 154 3.22.3.151.3 Correction Procedures - EC 154 3.22.3.152 Error Code 156 - Questionable Earned Income on Form 2555 Form 1040 3.22.3.152.1 Fields Displayed - EC 156 3.22.3.152.2 Correction Procedures (EC 156) 3.22.3.153 Error Codes 158 - 160 3.22.3.154 Error Code 161 - Schedule H Present Prior to 199512 or Loose Schedule H Present 3.22.3.154.1 Fields Displayed - EC 161 3.22.3.155 Error Codes 162 - 187 - Schedule H, Household Employment Taxes 3.22.3.156 Error Code 188 - Form 965-A ERS Validation TY 2018 and Later 3.22.3.156.1 Fields Displayed - EC 188 3.22.3.156.2 Correction Procedures EC 188 Form 1040-NR and Dual-Status Form 1040-NR 3.22.3.157 Error Code 189 - Form 8962 - Verification of Potentially Excessive Amounts (ACA) 3.22.3.158 Error Code 190 - Form 8962, Premium Tax Credit, Not Present and Advance Premium Tax Credit 3.22.3.158.1 Fields Displayed - EC 190 3.22.3.158.2 Error Code 190 - Form 1040-SS (sp) and Form 1040-SS Correction Procedures, Reply Procedures, and No Reply Procedures 3.22.3.159 Error Codes 191-199 - Form 8962, Premium Tax Credit 3.22.3.160 Error Code 202/502 - Schedule C 3.22.3.160.1 Fields Displayed - EC 202 3.22.3.160.2 Correction Procedures - EC 202 3.22.3.161 Error Code 203 - Schedule D/RPC "T" 3.22.3.162 Fields Displayed - EC 203 Schedule D and RPC T 3.22.3.163 Error Code 204/504 - Schedule D 3.22.3.163.1 Fields Displayed - EC 204/504 3.22.3.163.2 Correction Procedures - EC 204 Form 1040-NR 3.22.3.163.3 Allowable Taxpayer Notice Codes - EC 204 3.22.3.164 Error Code 206/506 - Schedule E 3.22.3.164.1 Fields Displayed - EC 206 3.22.3.165 Error Code 208/508 - Schedule F 3.22.3.165.1 Fields Displayed - EC 208 3.22.3.166 Error Code 209 - Combined SE Tax 3.22.3.166.1 Fields Displayed - EC 209 3.22.3.166.2 Invalid Conditions - EC 209 3.22.3.166.3 Correction Procedures - EC 209 Form 1040 and Form 1040-NR 3.22.3.166.4 Correction Procedures - EC 209 Form 1040-SS (sp)/Form 1040-SS 3.22.3.166.5 Allowable Taxpayer Notice Codes - EC 209 3.22.3.167 Error Code 210 - SE Tax Verified Present-SE Income Computer Zero 3.22.3.167.1 Fields Displayed - EC 210 3.22.3.168 Error Code 211/511 - Deduction for Self-Employment Tax 3.22.3.168.1 Fields Displayed - EC 211 3.22.3.168.2 Correction Procedures EC 211 3.22.3.168.3 Allowable Taxpayer Notice Codes - EC 211 3.22.3.169 Error Code 214/514 - Taxable Social Security 3.22.3.169.1 Correction Procedures - EC 214 3.22.3.169.2 Allowable Taxpayer Notice Codes - EC 214 3.22.3.170 Error Code 215 - Validation on MeF Form 1040-NR 3.22.3.170.1 Fields Displayed - EC 215 3.22.3.170.2 Correction Procedures - EC 215 Form 1040-NR 3.22.3.171 Error Code 216 - Form 2555 Social Security Benefits Present on Form 1040 3.22.3.171.1 Fields Displayed - EC 216 3.22.3.171.2 Invalid Conditions - EC 216 3.22.3.171.3 Correction Procedures - EC 216 3.22.3.172 Error Code 217 - Total Income $1,000,000,000 3.22.3.172.1 Fields Displayed - EC 217 3.22.3.173 Error Code 218/518 - Total Income Difference 3.22.3.173.1 Fields Displayed - EC 218 3.22.3.173.2 Correction Procedures - EC 218 3.22.3.173.2.1 Employees of Foreign Governments or International Organizations 3.22.3.173.2.2 Correction Procedures for EC 218 Form 1040-NR 3.22.3.173.2.2.1 Correction Procedures for EC 218 Form 1040-NR 3.22.3.173.2.2.2 J-1 Visa Exchange Visitor Program 3.22.3.173.2.3 Correction Procedures for EC 218 Form 1040 3.22.3.173.2.3.1 Excluding income using IRC 911 or Form 2555 3.22.3.173.2.3.2 IRC 931, IRC 933, or Form 4563 3.22.3.173.2.3.3 Tax Treaty Claimed on Form 1040 3.22.3.173.2.3.4 Taxable Social Security Benefits on Form 1040 3.22.3.173.2.4 Correction Procedures for EC 218 for Dual-status Returns 3.22.3.173.3 Allowable Taxpayer Notice Codes - EC 218 3.22.3.174 Error Code 220/520 - Educator Expense 3.22.3.174.1 Fields Displayed - EC 220 3.22.3.175 Error Code 222/522 - IRA Payments 3.22.3.175.1 Fields Displayed - EC 222 3.22.3.176 Error Code 224/524 - Student Loan Interest Deduction 3.22.3.176.1 Fields Displayed - EC 224 3.22.3.177 Error Code 226/526 - Health Savings Account 3.22.3.177.1 Fields Displayed - EC 226 3.22.3.178 Error Code 227/527 - MSA Deduction 3.22.3.178.1 Fields Displayed - EC 227 3.22.3.179 Error Code 228/528 - Non-Itemized Charitable Contribution Deduction (TY20 and TY21 only) 3.22.3.179.1 Fields Displayed - EC 228 3.22.3.179.2 Correction Procedures - EC 228 3.22.3.179.3 Allowable Taxpayer Notice Codes - EC 228 3.22.3.180 Error Code 229/529 - Total Adjustments Difference 3.22.3.180.1 Fields Displayed - EC 229 3.22.3.180.2 Correction Procedures - EC 229 3.22.3.180.2.1 Correction Procedures EC 229 - Form 1040 3.22.3.180.2.2 Correction Procedures EC 229 - Form 1040-NR 3.22.3.180.2.3 Correction Procedures EC 229 - Dual-Status Form 1040-NR 3.22.3.180.3 Allowable Taxpayer Notice Codes - EC 229 3.22.3.181 Error Code 230/530 - Adjusted Gross Income 3.22.3.181.1 Fields Displayed - EC 230 3.22.3.181.2 Correction Procedures - EC 230 3.22.3.181.2.1 Correction Procedures EC 230 - Form 1040 3.22.3.181.2.2 Correction Procedures EC 230 - Form 1040-NR 3.22.3.181.3 Allowable Taxpayer Notice Codes - EC 230 3.22.3.182 Error Code 231 - Form 8962 Discrepancy 3.22.3.182.1 Fields Displayed - EC 231 3.22.3.182.2 Allowable Taxpayer Notice Codes EC 231 3.22.3.183 Error Code 232 Medical Deduction Form 1040 Schedule A 3.22.3.184 Error Code 234 3.22.3.185 Error Code 236 - Total Taxes Real Estate and/or State and Local Tax 3.22.3.185.1 Fields Displayed - EC 236- Form 1040-NR 3.22.3.185.2 Correction Procedures EC 236 - Form 1040-NR 3.22.3.185.3 Form 1040 - Foreign Tax Deduction on Schedule A 3.22.3.185.4 Allowable Taxpayer Notice Codes - EC 236 3.22.3.186 Error Code 238 - Taxpayer's Total Interest Deduction Form 1040 Schedule A 3.22.3.187 Error Code 240/540 - Total Contributions 3.22.3.187.1 Fields Displayed - EC 240 3.22.3.187.2 Correction Procedures - EC 540 Form 1040-NR 3.22.3.187.3 Allowable Taxpayer Notice Codes - EC 240 3.22.3.188 Error Code 242/542 - Casualty or Theft Loss (Form 4684) 3.22.3.188.1 Fields Displayed - EC 242 3.22.3.188.2 Allowable Taxpayer Notice Codes - EC 242 3.22.3.189 Error Code 244/544 - Reserved 3.22.3.190 Error Code 246/546 - Total Itemized Deductions 3.22.3.190.1 Fields Displayed - EC 246 3.22.3.190.2 Correction Procedures - EC 246 - Form 1040-NR 3.22.3.190.3 Allowable Taxpayer Notice Codes - EC 246 3.22.3.191 Error Code 248 - Qualified Business Income Deduction Qualification 3.22.3.191.1 Fields Displayed - EC 248 3.22.3.192 Error Code 249/549 - Qualified Business Income Deduction Limitation 3.22.3.192.1 Fields Displayed - Error Code 249/549 3.22.3.192.2 EC 249 - IRC 933 or Income Excluded from Puerto Rico 3.22.3.192.3 EC 249 - Form 1040-NR Residents of India 3.22.3.193 Error Code 250/550 - Taxable Income 3.22.3.193.1 Fields Displayed - Error Code 250/550 3.22.3.193.2 Correction Procedures - EC 250 3.22.3.193.2.1 Correction Procedures EC 250 - Form 1040 3.22.3.193.2.1.1 Qualified Disaster Losses and Standard Deduction 3.22.3.193.2.1.2 EC 250 - IRC 931 or Form 4563 3.22.3.193.2.1.3 EC 250 - IRC 933 or Income Excluded from Puerto Rico 3.22.3.193.2.1.4 EC 250- Form 2555 3.22.3.193.2.1.5 EC 250 - Tax Treaty Claimed (Form 1040) 3.22.3.193.2.1.6 EC 250 - TY 2017 and prior, FS 4 and Exemption for Spouse 3.22.3.193.2.2 Correction Procedures EC 250 - Form 1040-NR 3.22.3.193.2.2.1 EC 250 - Standard Deduction for Residents of India (Form 1040-NR) 3.22.3.193.2.2.2 EC 250 - Standard Deduction and Itemized Deductions (other than Residents of India) 3.22.3.193.2.2.3 EC 250 - TY 2017 and prior, Exemptions 3.22.3.193.2.2.4 EC 250 - Taxable Income Computation Error 3.22.3.193.2.3 Correction Procedures EC 250 - Dual Status 3.22.3.193.2.3.1 EC 250 - Filing Status for Dual-Status 3.22.3.193.2.3.2 EC 250 - TY 2017 and prior, Exemptions for Dual-Status 3.22.3.193.2.3.3 EC 250 - Dual-status and Excluding Income 3.22.3.193.3 Allowable Taxpayer Notice Codes - EC 250 3.22.3.194 Error Code 252/552 - Reserved 3.22.3.195 Error Code 256 - Form 8615 Deductions 3.22.3.195.1 Fields Displayed - EC 256 3.22.3.196 Error Code 258/558 - Form 8615 Tax 3.22.3.196.1 Fields Displayed - EC 258 3.22.3.197 Error Code 260 - CCC "Y" 3.22.3.197.1 Fields Displayed - EC 260 3.22.3.197.2 Correction Procedures - CCC Y on Modernized E-File (MeF) Returns 3.22.3.197.2.1 Prior Year Form 1040,1040-PR and Form 1040-SS (MeF Only) 3.22.3.197.2.2 Form 1040 with Form 8833 Present (MeF Only) 3.22.3.197.2.3 Form 1040 with Form SSA/RRB 1042-S (MeF Only) 3.22.3.197.3 Correction Procedures- CCC Y on Dual-Status Form 1040 3.22.3.197.4 Correction Procedures - Form 1040-NR with U.S. - Canada Tax Treaty Article XXV Claim 3.22.3.197.5 Community Property Returns - Form 1040-NR 3.22.3.197.6 Manual Refunds 3.22.3.197.7 Short Period Tax Returns 3.22.3.198 Error Code 261/561 - Form 8814 Tax (Section 40) 3.22.3.198.1 Fields Displayed - EC 261 3.22.3.199 Error Code 262/562 - Form 8814 Tax (Section 41) 3.22.3.199.1 Fields Displayed - EC 262 3.22.3.200 Error Code 263/563 - Form 8814 Tax (Section 42) 3.22.3.200.1 Fields Displayed - EC 263 3.22.3.201 Error Code 264/564 - Tax on Lump Sum Distribution Form 4972 3.22.3.201.1 Fields Displayed - EC 264 3.22.3.202 Error Code 265/565 - Tentative Tax 3.22.3.202.1 Fields Displayed - EC 265 3.22.3.202.2 Correction Procedures - EC 265 Form 1040-NR 3.22.3.202.3 Correction Procedures - EC 265 Form 1040 with Form 2555 3.22.3.202.4 Correction Procedures - EC 265 Dual-status Return 3.22.3.202.5 Correction Procedures - EC 265 - All Other Forms 3.22.3.202.6 Correction Procedures - EC 565 3.22.3.202.7 Allowable Taxpayer Notice Codes EC 265 3.22.3.203 Error Code 266/566 - Tentative Tax Form 2555 3.22.3.203.1 Fields Displayed - EC 266 3.22.3.203.2 Invalid Conditions - EC 266 3.22.3.203.3 Correction Procedures - EC 266 Form 1040 with Form 2555 3.22.3.203.4 Allowable Taxpayer Notice Codes EC 266 3.22.3.204 Error Code 267 - Alternative Minimum Tax 3.22.3.204.1 Fields Displayed - EC 267 3.22.3.204.2 Correction Procedures - EC 267 Form 1040-NR 3.22.3.204.3 Correction Procedures - EC 267 Form 1040 3.22.3.204.4 Allowable Taxpayer Notice Codes - EC 267 3.22.3.205 Error Code 268 - Alternative Minimum Tax Liability 3.22.3.205.1 Fields Displayed - EC 268 3.22.3.205.2 Correction Procedures - EC 268 3.22.3.206 Error Code 269, Audit Code P or RPC Z 3.22.3.207 Error Code 270 - Advanced Premium Tax Credit (APTC) reported and no Form 8962 attached 3.22.3.208 Error Code 271 - Form 8962 Monthly Contribution Amount 3.22.3.208.1 Allowable Taxpayer Notice Codes - EC 271 3.22.3.209 Error Code 272 - Form 8962 Alternative Calculation for Marriage 3.22.3.209.1 Allowable Taxpayer Notice Codes - EC 272 3.22.3.210 Error Code 273 - Form 8962 Primary/Spouse ACM Monthly Contribution Differs 3.22.3.211 Error Code 274 - Form 8962 Annual/Monthly Premium Tax Credit 3.22.3.211.1 Correction Procedures - EC 274 3.22.3.211.2 Allowable Taxpayer Notice Codes - EC 274 3.22.3.212 Error Code 275 - Form 8962 Advanced Premium Tax Credit Monthly Payments 3.22.3.212.1 Allowable Taxpayer Notice Codes - EC 275 3.22.3.213 Error Code 276 - Form 8962 Advance Premium Tax Credit Repayment 3.22.3.213.1 Allowable Taxpayer Notice Codes - EC 276 3.22.3.214 Error Code 277/577 - Foreign Tax Credit 3.22.3.214.1 Fields Displayed - EC 277 3.22.3.214.2 Correction Procedures - EC 277 3.22.3.214.3 Allowable Taxpayer Notice Codes - EC 277 3.22.3.215 Error Code 278 - Transcription in Dollars Only, Adjusted Gross Income and Child Care Credit 3.22.3.215.1 Fields Displayed - EC 278 3.22.3.216 Error Code 279 Child and Dependent Care Credit Eligibility 3.22.3.217 Error Code 280/580 - Child and Dependent Care Credit 3.22.3.217.1 Fields Displayed - EC 280 3.22.3.217.2 Correction Procedures - EC 280 and Form 1040 with Form 2555 3.22.3.217.3 Correction Procedures - EC 280 and Form 1040-NR 3.22.3.217.4 Allowable Taxpayer Notice Codes - EC 280 3.22.3.218 Error Code 281-285 3.22.3.219 Error Code 286 - Retirement Savings Contribution Credit 3.22.3.219.1 Fields Displayed - EC 286 3.22.3.220 Error Code 287 - TIN Validation and Eligibility of Dependents for Child Tax Credit, Additional Child Tax Credit, and Credit for Other Dependents 3.22.3.220.1 Fields Displayed - EC 287 3.22.3.220.2 Correction Procedures - EC 287 - Form 1040-NR 3.22.3.220.2.1 Correction Procedures EC 287 - Form 1040-NR TY 201812 and Later 3.22.3.220.2.2 Correction Procedures EC 287 - Form 1040-NR TY 201712 and Prior 3.22.3.220.3 Correction Procedures EC 287 - Form 1040 With Income Exclusion 3.22.3.220.3.1 Correction Procedures EC 287 - Form 1040 TY 201812 and Later 3.22.3.220.3.2 Correction Procedures EC 287 - Form 1040 TY 201712 and Prior 3.22.3.220.4 Correction Procedures EC 287 - Dual Status Returns 3.22.3.221 Error Code 288/588 3.22.3.222 Error Code 289 - Child Tax Credit and Credit for Other Dependents With Other Credits Present 3.22.3.222.1 Fields Displayed - EC 289 3.22.3.223 Error Code 290 - Child Tax Credit and Credit for Other Dependents 3.22.3.223.1 Fields Displayed - EC 290 3.22.3.223.2 Correction Procedures - EC 290 - Form 1040-NR 3.22.3.223.2.1 Correction Procedures - EC 290 - Form 1040-NR TY 2018 and Later 3.22.3.223.2.2 Correction Procedures - EC 290 - Form 1040-NR TY 2017 and Prior 3.22.3.223.3 Correction Procedure - EC 290 - Form 1040 With Income Exclusion 3.22.3.223.3.1 Correction Procedure - EC 290 - Form 1040 With Income Exclusion - TY 201412 and Prior 3.22.3.223.4 Correction Procedure - EC 290 - Dual Status Returns 3.22.3.223.5 Allowable Taxpayer Notice Codes - EC 290 3.22.3.224 Error Code 291/591 - Residential Energy Credit 3.22.3.225 Error Code 292/592 - Mortgage Interest Credit 3.22.3.225.1 Fields Displayed - EC 292 3.22.3.225.2 Allowable Taxpayer Notice Codes - EC 292 3.22.3.226 Error Code 294/594 - Adoption Credit 3.22.3.226.1 Fields Displayed - EC 294 3.22.3.226.2 Correction Procedures - Adoption Credit and Form 1040 with Form 2555 (EC 294) 3.22.3.227 Error Code 296 - Questionable Adoption Credit 3.22.3.227.1 Fields Displayed - EC 296 3.22.3.228 Error Code 297/597 - Form 8910 and Form 8936 3.22.3.229 Error Code 298 - Motor Vehicle Credits Form 8936 3.22.3.230 Error Code 299 - Credits From Form 3800, Form 8801 and Other Credits 3.22.3.230.1 Fields Displayed - EC 299 3.22.3.230.2 Error Code 299 - Form 1040-NR 3.22.3.230.3 Allowable Taxpayer Notice Codes - EC 299 3.22.3.231 Error Code 300/600 - Other Statutory Credits 3.22.3.232 Error Code 301- Credit for Small Employer Health Insurance Premiums, Form 8941 3.22.3.232.1 Fields Displayed - EC 301 3.22.3.233 Error Code 302/602 - Form 8936, Part II and Part V 3.22.3.234 Error Code 303 - General Business Credit 3.22.3.235 Error Code 308/608 - Credit for Prior Year Minimum Tax (Form 8801) 3.22.3.235.1 Fields Displayed - EC 308 3.22.3.235.2 Allowable Taxpayer Notice Codes - EC 308 3.22.3.236 Error Code 310/610 - Total Statutory Credits 3.22.3.236.1 Fields Displayed - EC 310 3.22.3.236.2 Correction Procedures - EC 310 Form 1040 3.22.3.236.3 Correction Procedures - EC 310 Form 1040-NR 3.22.3.236.4 Allowable Taxpayer Notice Codes - EC 310 3.22.3.237 Error Code 311 - Not Effectively Connected Income (NEC) 3.22.3.237.1 Fields Displayed-Error Code 311 3.22.3.237.2 Invalid Condition - EC 311 3.22.3.237.3 Correction Procedures - EC 311 3.22.3.237.3.1 NEC Tax Rate Validation 3.22.3.237.3.2 EC 311 Pensions and Annuities on Form 1040-NR (Schedule NEC line 7) 3.22.3.237.3.3 EC 311 Social Security Benefits on Form 1040-NR (Schedule NEC line 8) 3.22.3.237.3.4 EC 311 Capital Gains and Losses on Form 1040-NR (Schedule NEC line 9 and line 18) 3.22.3.237.3.5 EC 311 Gambling Income and Losses on Form 1040-NR (Schedule NEC line 10 and 11) 3.22.3.237.4 Allowable Taxpayer Notice Codes - EC 311 3.22.3.238 Error Code 314 - Form 4137 Social Security and Medicare Tax on Unreported Income 3.22.3.238.1 Fields Displayed - EC 314 3.22.3.239 Error Code 316 - Form 4137 Tax Verified Present - Unreported Tips Computer Zero 3.22.3.239.1 Fields Displayed - EC 316 3.22.3.240 Error Code 318 - Additional Tax On IRA 3.22.3.240.1 Fields Displayed - EC 318 3.22.3.241 Error Code 322/622 - Schedule H Social Security, Medicare, and Federal Income Taxes 3.22.3.241.1 Fields Displayed - EC 322 3.22.3.241.2 Allowable Taxpayer Notice Codes - EC 322 - Form 1040-SS (sp)/1040-SS 3.22.3.242 Error Code 324/624 - Schedule H Federal Unemployment Tax Act (FUTA) Tax Reported 3.22.3.242.1 Fields Displayed - EC 324 3.22.3.242.2 Allowable Taxpayer Notice Codes - EC 324 - Form 1040-SS (sp)/Form 1040-SS 3.22.3.243 Error Code 326/626 - Schedule H Net Tax 3.22.3.243.1 Fields Displayed - EC 326 3.22.3.243.2 Allowable Taxpayer Notice Codes - EC 326 - Form 1040-SS (sp) 3.22.3.244 Error Code 327- Schedule H Tax With No Income 3.22.3.245 Error Code 328 - Repayment of the First-Time Homebuyer's Credit Form 5405 required on Forms other than Form 1040 3.22.3.245.1 Fields Displayed - EC 328 3.22.3.245.2 Field PNRI>/SNRI> - FTHBC Primary/Secondary NAP Repayment Installment 3.22.3.246 Error Code 329 - Repayment of the First-Time Homebuyer Credit (Form 5405) 3.22.3.246.1 Fields Displayed - EC 329 3.22.3.246.2 Allowable Taxpayer Notice Codes - EC 329 3.22.3.247 Error Code 330 - Form 8889 Tax 3.22.3.247.1 Fields Displayed - EC 330 3.22.3.248 Error Code 331 - Form 8959 Additional Medicare Tax 3.22.3.248.1 Fields Displayed - EC 331 3.22.3.248.2 Correction Procedures - Form 8959 and Form 1040-SS (sp) and Form 1040-SS 3.22.3.249 Error Code 332 Form 8960, Net Investment Income Tax 3.22.3.249.1 Fields Displayed - EC 332 3.22.3.249.2 Correction Procedures for Form 8960, Net Investment Income Tax - Dual-Status 3.22.3.250 Error Code 333 - Form 8959 and Form 8960 and Other Taxes (Schedule 2, Line 18, Form 1040 and Form 1040-NR) 3.22.3.250.1 Fields Displayed - EC 333 3.22.3.250.2 Correction Procedures - Form 8960, Net Investment Income Tax, Form 1040 (EC 333) 3.22.3.250.3 Correction Procedures - Form 8959, Additional Medicare Tax, on Form 1040-NR (EC 333) 3.22.3.250.4 Correction Procedures - Dual-Status Form 1040-NR Shared Responsibility Payment 3.22.3.250.5 Correction Procedures - Form 8959 and Form 8960 and Other Taxes, Line 18, Schedule 2, Form 1040-NR 3.22.3.250.6 Allowable Taxpayer Notice Codes - EC 333 3.22.3.251 Error Code 334 - Total Tax 3.22.3.251.1 Fields Displayed - EC 334 3.22.3.251.2 Correction Procedures - EC 334 Form 1040-NR Line 23a Tax on Income Not-Effectively Connected (NEC) 3.22.3.251.3 Correction Procedures - EC 334 Form 1040-NR Total Tax 3.22.3.251.4 Correction Procedures - EC 334 Form 1040 Social Security and Railroad Retirement Benefits (SSA/RRB 1042-S) 3.22.3.251.5 Correction Procedures - EC 334 Dual-status Returns 3.22.3.251.6 Correction Procedures - EC 334 FTHBC Repayment Field PNRI>/SNRI> (Form 1040/Form 1040-NR/Form 1040-SS (sp)/Form 1040-SS) 3.22.3.251.7 Correction Procedures - EC 334 Form 1040-SS (sp) and Form 1040-SS 3.22.3.251.7.1 Form 8959, Additional Medicare Tax 3.22.3.251.7.2 Field 05CTR Repayment of Advanced Child Tax Credit (TY21 only) 3.22.3.251.8 Allowable Taxpayer Notice Codes - EC 334 3.22.3.252 Error Code 336 - EIC TIN Qualification Indicator 3.22.3.253 Error Code 337/637 - Earned Income Tax Credit with Schedule EIC 3.22.3.253.1 Correction Procedures - EC 337 Form 1040 3.22.3.253.2 Correction Procedures - EC 337 Dual-Status 3.22.3.254 Error Code 338/638 - EIC without Schedule EIC 3.22.3.254.1 Correction Procedures - EC 338 Form 1040 3.22.3.254.2 Correction Procedures - EC 338 Dual-status 3.22.3.255 Error Code 343 - Additional Child Tax Credit for Puerto Rico Residents 3.22.3.255.1 Field Displayed - EC 343 3.22.3.255.2 Invalid Condition - EC 343 3.22.3.255.3 Correction Procedures - EC 343 3.22.3.256 Error Code 344 - Additional Child Tax Credit Tax Year 2022, 2020 and Prior 3.22.3.256.1 Fields Displayed - EC 344 Tax Year 2022 and later, 2020 and Prior 3.22.3.256.2 Correction Procedures - EC 344 Form 1040-SS (sp)/Form 1040-SS Additional Child Tax Credit - Puerto Rico Tax Year 2022 and forward and 2020 and prior 3.22.3.256.3 Correction Procedures - EC 344 Form 1040 with an address in Puerto Rico OR Taxpayers with Income from Puerto Rico Tax Year 2022, 2020 and Prior 3.22.3.256.4 Correction Procedures - EC 344 All Other U.S. Territory except Puerto Rico - Additional Child Tax Credit TY 2022, 2020 and Prior 3.22.3.256.5 Correction Procedures - EC 344 Form 1040 - Excluding Income and Claiming Additional Child Tax Credit Tax Year 2022, 2020 and Prior 3.22.3.256.6 Correction Procedures - EC 344 Form 1040-NR Claiming Additional Child Tax Credit Tax Year 2022, 2020 and Prior 3.22.3.256.7 Allowable Taxpayer Notice Codes - EC 344 3.22.3.257 Error Code 345 - Refundable and Additional Child Tax Credit TY 2021 only 3.22.3.257.1 Fields Displayed - EC 345 3.22.3.257.2 Correction Procedures - EC 345 Form-PR/Form 1040-SS Refundable Child Tax Credit Puerto Rico Tax Year 21 only 3.22.3.257.3 Correction procedures - EC 345 Form 1040 with an address in Puerto Rico or Taxpayers with Income from Puerto Rico Tax Year 2021 only 3.22.3.257.4 Correction Procedures - EC 345 All Other U.S. Territory Except Puerto Rico - Refundable Child Tax Credit - TY21 only 3.22.3.257.5 Correction Procedures - EC 345 Form 1040 - Excluding Income and Claiming Additional Child Tax Credit or Refundable Child Tax Credit- TY21 only 3.22.3.257.6 Correction Procedures - EC 345 Form 1040-NR Claiming Refundable Child Tax Credit - TY21 only 3.22.3.257.7 Allowable Taxpayer Notice Codes - EC 345 3.22.3.258 Error Code 347 - Refundable American Opportunity Credit 3.22.3.259 Error Code 349 - Recovery Rebate Credit Tax Year 2020 only 3.22.3.260 EC 350 - Recovery Rebate Credit Tax Year 2021 only 3.22.3.261 Error Code 352 - Form 8962 is missing and Refundable Credit Claimed 3.22.3.261.1 Allowable Taxpayer Notice Codes - EC 352 3.22.3.262 Error Code 353 - Form 8962 Premium Tax Credit Claimed, Not Eligible 3.22.3.262.1 Allowable Taxpayer Notice Codes - EC 353 3.22.3.263 Error Code 354 - Premium Tax Credit 3.22.3.263.1 Allowable Taxpayer Notice Codes - EC 354 3.22.3.264 Error Code 356 - Fuel Tax Credit 3.22.3.265 Error Code 358 - Form 2439 and Form 8885 Credits, and Write-in Credits (and Prior Year Form 8839 and Form 8801) 3.22.3.265.1 Fields Displayed-EC 358 3.22.3.265.2 Correction Procedures Health Coverage Tax Credit (Form 8885) on Form 1040 and Form 1040-NR 3.22.3.266 Error Code 360 - Refundable Payments or Credits Verification 3.22.3.266.1 Fields Displayed EC 360 - Form 1040-NR 3.22.3.267 Error Code 363 Child and Dependent Care Expenses Tax Year 2021 only 3.22.3.267.1 Fields Displayed - EC 363 3.22.3.267.2 Correction Procedures - EC 363 and Form 1040 with Form 2555 3.22.3.267.3 Correction Procedures - EC 363 and Form 1040-NR 3.22.3.267.4 Allowable Taxpayer Notice Codes - EC 363 3.22.3.268 Error Code 364/664 - Refundable Credits 3.22.3.268.1 Fields displayed - EC 364 3.22.3.268.2 Correction Procedures - EC 364 Refundable Credits - Form 1040 3.22.3.268.2.1 Excess Social Security Tax (SST) and Railroad Retirement Tax (RRTA) - Form 1040 3.22.3.268.2.2 Form 8689 - Allocation of Income Tax to the U.S. Virgin Islands 3.22.3.268.3 Correction Procedures - EC 364 - Form 1040-NR (TY 2020 and later) 3.22.3.268.3.1 Excess Social Security Tax (SST) and Railroad Retirement Tax (RRTA) - Form 1040-NR 3.22.3.268.4 Correction Procedures - EC 364 - Dual-Status 3.22.3.268.5 Allowable Taxpayer Notice Codes - EC 364 3.22.3.269 Error Code 366/666 - Total Payments 3.22.3.269.1 Fields Displayed - EC 366 3.22.3.269.2 Correction Procedures - EC 366 3.22.3.269.3 Correction Procedures - EC 366- Form 1040 3.22.3.269.3.1 Total Payments - EC 366 - Form 1040 3.22.3.269.3.2 Form 1040 - Federal Withholding 3.22.3.269.3.3 Form 1040 - Tax Withheld on Form SSA/RRB 1042-S 3.22.3.269.3.4 Form 1042-S - Tax Withheld at Source on Form 1040 (Form 1042-S) 3.22.3.269.3.5 Form 8288-A - Statement of Withholding on Certain Dispositions by Foreign Persons on Form 1040 3.22.3.269.3.6 Form 8805 - Foreign Partner's Information Statement of Section 1446 Withholding Tax on Form 1040 3.22.3.269.4 EC 366 - Correction Procedures-Form 1040-NR 3.22.3.269.4.1 Total Payments- EC 366 - Form 1040-NR 3.22.3.269.4.2 Withholding - Form 1040-NR 3.22.3.269.4.3 Field 03WH - U.S. Tax Withheld on Form W-2, Form 1099 and Other Forms 3.22.3.269.4.4 Field 0325E - U.S. Tax Withheld at Source by Partnerships Under Section 1446 (Form 8805)- Form 1040-NR 3.22.3.269.4.5 Field 0325F - U.S. Tax Withheld on Certain Dispositions by Foreign Persons(Form 8288-A) - Form 1040-NR 3.22.3.269.4.6 Field 0325G - Form 1042-S Withholding Form 1040-NR 3.22.3.269.4.7 Tax Withheld on Form SSA/RRB 1042-S Form 1040-NR 3.22.3.269.5 Correction Procedures - EC 366 - Form 1040-SS (sp)/Form 1040-SS 3.22.3.269.5.1 Form 1040-SS (sp) and Form 1040-SS - EC 366 - Total Payments 3.22.3.269.5.2 Field 05ESS Excess Social Security Tax (SST) and Railroad Retirement Tax (RRTA) - Form 1040-SS (sp)/Form 1040-SS 3.22.3.269.5.3 Line 10, Form 1040(PR)/Form 1040-SS, Form 8885, Health Coverage Tax Credit (HCTC) 3.22.3.269.5.4 Form 8959 - Additional Medicare Tax- Form 1040-SS (sp)/Form 1040-SS 3.22.3.269.6 Allowable Taxpayer Notice Codes - EC 366 3.22.3.270 Error Code 369 - 1 percent Refund/Total Tax Liability ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 3.22.3.270.1 Fields Displayed - EC 369 3.22.3.271 Error Code 370/670 - Balance Due/Refund 3.22.3.271.1 Fields Displayed - EC 370 3.22.3.271.2 Correction Procedures - EC 370 Form 1040-SS (sp) and Form 1040-SS 3.22.3.271.2.1 Field 03BDR> - Balance Due Overpayment Taxpayer Computer 3.22.3.271.2.2 Field 03BDR - Balance Due/Refund 3.22.3.271.3 Allowable Taxpayer Notice Codes - EC 370 3.22.3.272 Error Code 372 - $1,000,000 or More Refund 3.22.3.272.1 Fields Displayed - EC 372 3.22.3.273 Error Code 374 - Pre-Determined ES Penalty 3.22.3.273.1 Fields Displayed - EC 374 3.22.3.274 Error Code 380 Self-Employment Income and EIC 3.22.3.275 Error Code 531 - ≡ ≡ ≡ ≡ ≡ Difference in Adjusted Gross Income (AGI) 3.22.3.275.1 Fields Displayed - EC 531 3.22.3.276 Error Code 601 - RPC J 3.22.3.276.1 Fields Displayed - EC 601 3.22.3.276.2 Invalid Condition - EC 601 3.22.3.276.3 Correction Procedures - EC 601 3.22.3.277 Error Code 702 3.22.3.278 Error Code 704 - Unallowable Amount with No Code 3.22.3.278.1 Fields Displayed - EC 704 3.22.3.279 Error Code 706 - Unallowable Codes 92 to 99 (Except UA 95) 3.22.3.280 Error Code 708 - Unallowable Codes 30 to 49 Schedule A 3.22.3.280.1 Fields Displayed - EC 708 3.22.3.281 Error Code 712 - Unallowable Tax Verified Missing 3.22.3.281.1 Fields Displayed - EC 712 3.22.3.282 Error Code 714 - Unallowable Tax Verified 3.22.3.283 Error Code 716 - Unallowable Tax Verified 3.22.3.283.1 Fields Displayed - EC 716 3.22.3.284 Error Code 718 - Unallowable Tax Verified 3.22.3.285 Error Code 750 - ACA 3.22.3.285.1 Correction Procedures - EC 750 3.22.3.286 International Replies to Correspondence 3.22.3.287 Second Correspondence 3.22.3.288 No Reply/Incomplete Reply/Undeliverables Exhibit 3.22.3-1 Tax Treaty Table 2. Compensation for Personal Services Performed in United States Exempt from U.S. Income Tax Under Income Tax Treaties Exhibit 3.22.3-2 Exempt Countries for Government Service Employees Exhibit 3.22.3-3 Treaty Table 1, Tax Rates on Income Other than Personal Service Income Under Chapter 3, Internal Revenue Code, and Income Tax Treaties Exhibit 3.22.3-4 Country and Post of Duty (POD) Codes Exhibit 3.22.3-5 U.S. Territories - Zip Codes Exhibit 3.22.3-6 Province, State and Territory Abbreviations Exhibit 3.22.3-7 Types of Visas Exhibit 3.22.3-8 International Organizations Designated by the President through Executive Order Exhibit 3.22.3-9 Taxpayer Notice Codes (TPNC) Exhibit 3.22.3-10 No Reply to Correspondence Exhibit 3.22.3-11 Prior Year Treaty Chart for Treaties In Force after 2005 Exhibit 3.22.3-12 IAT Letter 4087C Fill-in paragraphs Exhibit 3.22.3-13 IAT Letter 2894C/SP and 2894C Fill-in paragraphs Exhibit 3.22.3-14 Tax Forms and Internal Use Forms Exhibit 3.22.3-15 Acronyms Exhibit 3.22.3-16 Calculation Examples for EC 156 Exhibit 3.22.3-17 Return Due Date Part 3. Submission Processing Chapter 22. International Error Resolution Section 3. Individual Income Tax Returns 3.22.3 Individual Income Tax Returns Manual Transmittal November 06, 2023 Purpose (1) This transmits revised IRM 3.22.3, International Error Resolution - Individual Income Tax Returns. Material Changes (1) IRM 3.22.3.3(3) Added instructions for Certain Former Citizens IPU 23U0345 issued 03-03-2023. (2) IRM 3.22.3.11.4(2) Deleted extraneous period at start of bullet 4 IPU 23U0771 issued 06-26-2023. (3) IRM 3.22.3.15.16(2) Removed FPC D from allowable form processing codes for Form 1040-PR IPU 23U0226 issued 02-03-2023. (4) IRM 3.22.3.15.16 Updated listing of valid form processing codes (FPC) for PY23 IPU 23U0205 issued 02-01-2023. (5) IRM 3.22.3.15.16 Updated listing of valid form processing codes (FPC) for PY23 IPU 23U0138 issued 01-19-2023. (6) IRM 3.22.3.19.36(1) Updated field 05SFL to be valid for TY22 IPU 23U0095 issued 01-17-2023. (7) IRM 3.22.3.148.3(11) Updated waiver countries for TY20 and TY21 IPU 23U0095 issued 01-17-2023. (8) IRM 3.22.3.152.1 Updated fields displayed to include 03TWG IPU 23U0345 issued 03-03-2023. (9) IRM 3.22.3.152.2(7) Added instructions to include amount in field 03TWG IPU 23U0345 issued 03-03-2023. (10) IRM 3.22.3.152.2(9) Corrected $1112,000 to $112,000 IPU 23U0693 issued 06-02-2023. (11) IRM 3.22.3.152.2(9) step 3 Updated Schedule 1 line numbers due to PY23 form changes IPU 23U0095 issued 01-17-2023. (12) IRM 3.22.3.171.3 Added "or equal to" to if/then chart IPU 23U0693 issued 06-02-2023. (13) IRM 3.22.3.171.3(2) Clarified ‘more’ and ‘less’ refers to computer amount IPU 23U0205 issued 02-01-2023. (14) IRM 3.22.3.173.2.1 Updated incorrect correspondence paragraph L to K IPU 23U0693 issued 06-02-2023. (15) IRM 3.22.3.173.2.2.1(2) (a) Corrected tax year for prior year form line numbering IPU 23U0771 issued 06-26-2023. (16) IRM 3.22.3.173.2.2.1(2) (a) Clarified process for prior year scholarship and fellowship grant inclusion IPU 23U0095 issued 01-17-2023. (17) IRM 3.22.3.173.2.2.1(2) Clarified Field 04OTI and scholarship or fellowship procedures IPU 23U0474 issued 03-30-2023. (18) IRM 3.22.3.173.2.2.1(3) e.2) Updated incorrect correspondence paragraph L to J IPU 23U0693 issued 06-02-2023. (19) IRM 3.22.3.173.2.3.1(2) Removed incorrect Z after 2555 IPU 23U0095 issued 01-17-2023. (20) IRM 3.22.3.173.2.3.1(4)(a) Added field 03TWG to include foreign income amount IPU 23U0345 issued 03-03-2023. (21) IRM 3.22.3.173.2.3.1(4) (b) Consolidated instruction in first and second if/then box IPU 23U0771 issued 06-26-2023. (22) IRM 3.22.3.173.2.3.4(2) Updated incorrect line number 5b to 6b IPU 23U0095 issued 01-17-2023. (23) IRM 3.22.3.185.2 Added reference to EC 246 when field 0701A and it’s underprint match IPU 23U0693 issued 06-02-2023. (24) IRM 3.22.3.190.2 Added reference to IRM 3.12.3 EC 246 instruction when non deductible entry on line 7 Schedule A IPU 23U0693 issued 06-02-2023. (25) IRM 3.22.3.193.2.1.4 Removed references to Form 2555-EZ from title and instructions as form is obsolete IPU 23U0095 issued 01-17-2023. (26) IRM 3.22.3.204.2(2) Removed TPNC 100 reference IPU 23U0474 issued 03-30-2023. (27) IRM 3.22.3.205(1) Updated RPC to FPC IPU 23U0205 issued 02-01-2023. (28) IRM 3.22.3.205.2(1) Updated RPC to ‘codes’ and included FPC in possible codes IPU 23U0205 issued 02-01-2023. (29) IRM 3.22.3.205.2(1) (a) Updated RPC 5 to FPC 5 due to new FPC codes IPU 23U0095 issued 01-17-2023. (30) IRM 3.22.3.251.5(2) Updated to add "If Form 1040-NR is the controlling return" to instruction IPU 23U0758 issued 06-20-2023. (31) IRM 3.22.3.255.3(7) (2) Removed TPNC 100 reference IPU 23U0474 issued 03-30-2023. (32) IRM 3.22.3.256.4(1) Corrected TPNC 1461 to TPNC 461 IPU 23U0545 issued 04-25-2023. (33) IRM 3.22.3.265(4) Updated reference to EC 348 to reference EC 358 IPU 23U0545 issued 04-25-2023. (34) IRM 3.22.3.257.6(5) (j) Updated incorrect TPNC 417 to TPNC 250 or TPNC 251 IPU 23U0095 issued 01-17-2023. (35) IRM 3.22.3.269.2.2 Updated instruction to input Form 8689 amount in both field 05OTH and field 05OPR IPU 23U0771 issued 06-26-2023. (36) IRM 3.22.3.269.3(1) Added instructions for write-in requests for RRC on Form 1040-NR IPU 23U0205 issued 02-01-2023. (37) IRM 3.22.3.269.4(2) Added guidance for dual-status taxpayers claiming education credit IPU 23U0545 issued 04-25-2023. (38) IRM 3.22.3.270.3.5(1)(B) Updated incorrect link IPU 23U0345 issued 03-03-2023. (39) IRM 3.22.3.270.4.5 Updated section title and updated incorrect link to IRM 3.21.25 IPU 23U0345 issued 03-03-2023. (40) IRM 3.22.3.270.4.6(4)(d)(2) Corrected incomplete TPNC 3 to 334 IPU 23U0345 issued 03-03-2023. (41) Exhibit 3.22.3-4 Updated Bassas da India country code to XX IPU 23U0545 issued 04-25-2023. (42) Exhibit 3.22.3-10 Updated TPNC 1344 to TPNC 344 IPU 23U0205 issued 02-01-2023. (43) Exhibit 3.22.3-16 Updated Schedule 1 line numbers IPU 23U0095 issued 01-17-2023. (44) Exhibit 3.22.3-17 Updated column heading to tax year 2022 IPU 23U0205 issued 02-01-2023. Editorial changes made throughout IRM 3.22.3 and updated to tax year 2023 annual inflation adjustments where applicable as listed below: Updated line numbers and field designators to reflect tax year 2023 changes to forms and ERS screens. Updated links due to moving of subsections. Maximum Foreign Earned Income Exclusion Amount ($120,000.00). Standard deductions for Single and Filing Separate taxpayer ($13,18950.00). Social Security Withholding limit ($9,932.40) All PY23 references to Form 1040(PR) have been changed to Form 1040-SS (sp). Effect on Other Documents IRM 3.22.3 published on November 011, 202(effective January 1, 20232) is superseded. This IRM incorporates the following IRM Procedural Updates (IPUs):23U0095 issued on 01/12/2023, 23U0138 issued on 01/18/2023, 23U0205 issued on 01/31/2023, 23U0226 issued on 02/02/203, 23U0345 issued on 03/02/2023, 23U0474 issued on 03/28/2023, 23U0545 issued on 04/24/2023, 23U0693 issued on 06/01/2023, 23U0758 issued on 06/16/2023, 23U0771 issued on 06/22/2023, 23U0848 issued on 07/26/2023. Audience Wage and Investment International Error Resolution Effective Date (01-01-2024) James L. Fish Director, Submission Processing Wage and Investment Division 3.22.3.1 (01-01-2018) Program Scope and Objectives Purpose. This Internal Revenue Manual (IRM) provides instructions for correcting errors identified in Error Resolution System (ERS) processing of International Individual Master File (IMF) tax returns. International IMF tax returns are tax returns identified using the criteria in IRM 3.22.3.3, International Returns. Audience. Tax examiners in the Error Resolution Department of the Austin Submission Processing Center, Wage and Investment Division (W&I), are the primary users of this IRM. Policy Owner. The Director of Submission Processing is responsible for the policies in this IRM. Program Owner. The Code & Edit/ERS IMF Section of the Paper Processing Branch of Submission Processing is responsible for the procedures and all updates related to this IRM. Program Goals. The ERS program objective is to provide timely and accurate correction of tax returns that are in ERS error inventory after inputting return data via Integrated Systems Remittance Processing (ISRP) and Modernized e-File (MEF). This IRM provides procedures for the processing of international IMF tax returns and related documents in ERS inventory. 3.22.3.1.1 (01-01-2018) Background The Error Resolution System (ERS) is an online computer application used by tax examiners to correct errors identified on tax returns during Generalized Mainline Framework (GMF) processing. 3.22.3.1.2 (01-01-2023) Authority Authority for the procedures in this IRM is in the following sections of the Internal Revenue Code and their corresponding Treasury regulations: IRC 6213(b) IRC 6201(a) Policy Statements and Delegation Orders for submission processing are in the following IRMs: IRM 1.2.1, Servicewide Policy Statements IRM 1.2.2, Servicewide Delegations of Authority 3.22.3.1.3 (01-01-2018) Responsibilities The Submission Processing Director is responsible for monitoring operational performance of Submission Processing. The Austin Submission Processing Input Correction Operations Manager is responsible for monitoring operational performance of Austin Error Resolution. The Error Resolution team manager and lead tax examiner are responsible for performance monitoring and ensuring tax examiners have the tools to perform their duties. Tax examiners are responsible for following the instructions in this IRM, including all IRM procedural updates (IPU) posted to the SERP (Servicewide Electronic Research Program) website. 3.22.3.1.4 (05-05-2017) Program Management and Review Program Reports. All ERS records are controlled by a Document Locator Number (DLN), and error records are accessed and assigned for correction by block DLN. The daily ERS Error Inventory Report ERS 13-40 lists each block of returns and the number of returns in ERS inventory by program. The ERS system displays with command ERVOL the real-time volume in inventory by status and by program. Daily, weekly and periodic reports are available to management through Control-D WebAccess to manage inventory and capture data for program planning and review. See IRM 3.12.37, Error Resolution, IMF General Instructions, Related Reports, for a listing and description of ERS reports. Quality Review. Tax examiner completed inventory is selected for quality review during real-time processing. This review is conducted according to the procedures in IRM 3.30.30, Embedded Quality for Submission Processing (EQSP) System. CARE Review. The Computer Assisted Review of ERS (CARE) is an on-line quality review of Taxpayer Notice Codes (TPNC) when assigned by tax examiners in ERS. Assigned TPNCs are reviewed and records are corrected to prevent the issuance of erroneous notices to taxpayers. Results are reported in daily and periodic reports to managers and tax examiners. Annual Clearance of IRM. This IRM is updated and published annually after review and concurrence by affected offices according to the clearance process established in IRM 1.11.9, Internal Management Documents, Clearing and Approving Internal Management Documents (IMDs). 3.22.3.1.5 (05-05-2017) Program Controls All tax examiners must submit and have approved by management an Online 5081 (OL5081) to gain access to the Error Resolution System. Tax returns in ERS are worked on a First In First Out (FIFO) basis as they are received from input systems through the General Mainline Framework (GMF). Control clerks are responsible for the control of error documents. Inventory control procedures are described in IRM 3.12.37, Error Resolution, IMF General Instructions. 3.22.3.1.6 (01-01-2024) Related Resources The following table lists other Internal Revenue Manuals (IRM) and job aids that provide guidance for ERS processing of international tax returns. Resource Title IRM 3.12.2 Individual Master File Error Resolution General Instructions IRM 3.12.3 Error Resolution -Individual Income Tax Returns IRM 3.12.37 Error Resolution -IMF General Instructions IRM 3.21.3 International Returns and Documents Analysis - Individual Tax Returns IRM 3.21.25.17 International Returns and Document Analysis - Miscellaneous Tax Returns, Credit Verifying Form 8288-A (FIRPTA) and section 1446(f)(1) Credits ERS International IMF Job Aid 2512-001 Error Resolution System (ERS) for Individual Master File Documents, International Tax Returns IMF Foreign Address Job Aid 2513-703 International Submission Processing IMF Foreign Address Job Aid ERS Current Year Job Aid 2515-015 Error Resolution System (ERS) for Individual Master File Documents ERS Prior Year Job Aid 2515-014 Error Resolution System (ERS) for Individual Master File Documents 3.22.3.1.7 (05-05-2017) Forms Tax forms and internal use forms referenced in this IRM are listed in Exhibit 3.22.3-14, Tax Forms and Internal Use Forms. 3.22.3.1.8 (05-05-2017) Acronyms Acronyms commonly used in this IRM are listed in Exhibit 3.22.3-15, Acronyms. 3.22.3.1.9 (01-01-2018) Organization of Text The text in this manual is organized in the following order: General Information Correspondence Procedures Special Procedures Field Errors Error Codes Reply and No Reply Procedures Exhibits 3.22.3.2 (11-03-2022) General Guidelines for Tax Examiners ERS International IMF Job Aid 2512-001 and IMF Foreign Address Job Aid 2513-703 are used as references with this manual. This manual refers the tax examiner to appropriate explanatory information or exhibits in the job aids. When a conflict between any reference or training material and this manual occurs, the manual instructions take precedence. IRM 3.12.2, Individual Master File Error Resolution General Instructions, and IRM 3.12.3, Error Resolution, Individual Income Tax Returns, must be used when specific instructions are not provided in IRM 3.22.3. Error record formats and error field displays for Form 1040, are found in IRM 3.12.2 and IRM 3.12.3, except for field displays for Form 1040 errors that only generate on international returns (EC 025, EC 051, EC 148, EC 150, EC 152, EC 154, EC 156, and EC 216). The field displays for these errors are included in this IRM. Form 1040-NR, Form 1040-SS (sp), and Form 1040-SS record formats and field displays are included in the relevant sections and error codes in this IRM. The Form 1040A and Form 1040EZ are made obsolete for Tax Year 2018. In PY 2021, Form 1040A and Form 1040EZ ERS screens are deleted. Code & Edit will convert all Forms 1040A and 1040EZ for Form 1040 processing. All references to Form 1040A or 1040EZ are removed from the IRM with few exceptions as the instruction apply to TY2017 and prior year returns only. The Form 2555-EZ is obsolete for Tax Year 2019. All references to Form 2555-EZ should be used for TY 2018 and prior year returns only. The Schedule C-EZ is obsolete for Tax Year 2019. All references to Schedule C-EZ should be used for TY 2018 and prior year returns only. The short Schedule SE is made obsolete starting in Tax Year 2020. A new Form 1040-SR is introduced for TY2019. This form is identical to 2019 Form 1040 with increased font size and expanded form length. All processing instructions that apply to Form 1040 apply equally to Form 1040-SR. In tax year 2020, processing year 2021, Form 1040-NR has been redesigned to Form 1040-NR plus Schedule 1, 2 and 3. As part of its redesign, pages 1 and 2 of Form 1040-NR is restructured to look like the redesigned Form 1040. This redesigned Form 1040-NR will use Schedules 1, 2, and 3 (Form 1040). With the redesign of Form 1040-NR for TY20, Schedule A, Schedule NEC and Schedule OI (Page 3, 4 and 5 of TY19 Form 1040-NR) are removed from Form 1040-NR and will be filed as a separate schedule. Throughout the IRM references to page numbers are replaced with references to Schedules as follows: TY 2020 TY 2019 and prior Schedule A Page 3 of Form 1040-NR Schedule NEC Page 4 of Form 1040-NR Schedule OI Page 5 of Form 1040-NR ERS screen displays for Section 01 through Section 05 have been realigned to follow the new redesigned Form 1040-NR. Here is summary of Section 01 through Section 05 and how they are realigned: Section 01 - Entity portion of Form 1040-NR Section 02 - Form 3471 Edit Sheet Section 03 - Beginning at line 1, Page 1, Form 1040-NR through entire Page 2, Form 1040-NR Section 04 - Schedule 1, Form 1040/Form 1040-NR Section 05 - Schedule 2 and 3, Form 1040/Form 1040-NR Note: TY18 Schedule 4, 5 and 6 of Form 1040 are obsolete for TY2019 and later. Reminder: ERS examiner are reminded to get familiarized with the changes to field names, sections and error codes. Form 1040-NR-EZ is made obsolete for TY20. In PY 2022, Form 1040-NR-EZ screens are deleted. Code & Edit will convert all Forms 1040-NR-EZ for Form 1040-NR processing. References to Form 1040-NR-EZ are removed from IRM with few exceptions as the instructions apply to TY 2019 and prior year returns only. Due to the redesign of Form 1040-NR, the line number references in sections, error codes and instructions are updated to follow line numbers on TY21 form. For Form 1040-NR-EZ, the line numbers references remain unchanged to follow TY19 line numbers. For prior year line numbers on either Form 1040-NR or Form 1040-NR-EZ, examiners are reminded to use ERS International IMF Job Aid 2512-001. A new Section 94 is created to include all the verified fields that are applicable to the fields that are in Sections 01 through 05. This is a required section. According to Notice 2020-23, the due dates, both April 15 and June 15 for TY 2019 tax returns has been postponed to July 15, 2020. This change in due date applies to all forms, Form 1040, Form 1040-SR, Form 1040-NR, Form 1040-NR-EZ, Form 1040(PR), and Form 1040-SS. Although the due date for TY 2020 returns has been postponed, the programming for Field T-DAT> has not been revised to reflect this postponed due date of May 17, 2021. Instructions in EC 287 and EC 340 have been updated to follow the May 17, 2021 date when TIN assignment date is after the date in Field T-DAT>. In processing year 2021 and later, TY 2017 and prior year returns will be impacted with changes in programming. Programming will compute taxable income, child tax credit and additional child tax credit based on the rules revised in Tax Cuts and Job Act that is TY 2018 returns. Programming will not compute exemptions amount. ERS examiners are reminded to manually compute the taxable income and the credits and use the verified fields accordingly, prior to assigning TPNCs. In tax year 2021 Form 1040(PR) and Form 1040-SS entity section is updated to add the following filing statuses: Head of Household and Qualifying Widower. In tax year 2023 Form 1040(PR) is made obsolete and is replaced with Form 1040-SS (sp). Additionally Form 1040-SS/Form 1040-SS (sp) went from a 4 page return that included abbreviated versions of Schedules C, F, and SE to a 2 page form. Taxpayers will attach Schedules C, F, and SE if required. Page 2 of the Form 1040-SS/1040-SS (sp) includes Part II for bona fide residents of Puerto Rico to claim the Additional Child Tax Credit. IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2, Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevated through appropriate channels for executive approval. 3.22.3.3 (01-01-2024) International Returns International tax returns are identified by the presence of one of the following: An address outside the 50 United States and Washington D.C. (This does not include Army/Air Force Post Office/Fleet Post Office Post Office (APO/FPO) addresses.) Form 1040 GUAM Form W-2 from American Samoa (W-2AS) Form W-2 from Commonwealth of Northern Mariana Islands (W-2CM) Form W-2 from Guam (W-2GU) Form W-2 from Puerto Rico (499R-2/ W-2 PR) Form W-2 from United States Virgin Islands (W-2VI) Form 1040-NR, U.S. Nonresident Alien Income Tax Return Form 1040-NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents Form 1040(PR) - U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico) (Spanish version) Form 1040-SS - U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico) Form 1040-SS (sp) - U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico) (Spanish version) Form 1042-S, Form SSA 1042-S or Form RRB 1042-S Form 2555 - Foreign Earned Income Form 2555-EZ - Foreign Earned Income Exclusion Note: Form 2555-EZ is obsolete as of December 31, 2018 Form 4563 - Exclusion of Income for Bona Fide Residents of American Samoa Form 5074 - Allocation of Individual Income Tax to Guam or the Commonwealth of Northern Mariana Islands Form 8288-A - Statement of Withholding on Certain Dispositions by Foreign Persons Form 8689 -Allocation of Individual Income Tax to the United States Virgin Islands Form 8804 - Annual Return for Partnership Withholding Tax Under Section 1446 Form 8805 - Foreign Partner's Information Statement of Section 1446 Withholding Tax Form 8813 - Partnership Withholding Tax Payment Form 8833 - Treaty-Based Return Position Disclosure Form 8854 - Initial and Annual Expatriation Information Statement Form 8891 - U.S. Information Return for Beneficiaries of Certain Canadian Registered Retirement Plans Note: Form 8891 is obsolete as of December 31, 2014 Form 8898 - Statement for Individuals Who Begin or End Bona Fide Residency in a United States Possession Dual-status - Form 1040 and Form 1040-NR filed together for the same tax year; "Dual-status" or "D/S" indicated on the return Nonresident Alien (NRA), primary or both taxpayers are nonresident alien Exception: The primary taxpayer is a nonresident alien (NRA) without a Social Security number (SSN) or an individual taxpayer identification number (ITIN), but the secondary taxpayer has an SSN/ITIN and is reporting income. International Tax Treaty - taxpayer indicating exemption or exclusion of tax and/or income due to an International tax treaty Note: "American Indian" treaty returns are not considered International returns. They must be renumbered as a domestic return. Treaty Trader Fulbright Grantee IRC 871, IRC 893, IRC 911, IRC 913, IRC 931, IRC 932, IRC 933, IRC 934 or IRC 935 of the Internal Revenue Code (IRC) is notated anywhere on the return. Exception: For electronically filed returns, if the amount of the exclusion is $0 and there are no other indications of international criteria, DO NOT send to Austin for processing as an international return. Notation of "Streamlined" or other indication of Streamlined Filing Compliance Procedures on the return. Form 14653 (Streamlined Foreign Offshore), Form 14654 (Streamlined Domestic Offshore), or similar certification. Note: Returns on which taxpayers convert income paid in foreign currency to U.S. currency are not considered International unless there are other international criteria. International returns are assigned the following File Location Codes (FLC): FLC 20 is assigned to any return identified as international using the criteria above, not including returns that are identified as U.S. territory returns. FLC 21 is assigned to any Form 1040, Form 1040-SS (sp), and Form 1040-SS that is identified as a U.S. territory return. The five key U.S. Territories are American Samoa (AS), Commonwealth of Northern Mariana Islands (CNMI), Guam (GU), Puerto Rico (PR) and United States Virgin Islands (USVI). All returns with a valid Form 2555 (TY18 and prior) must be processed with FLC 20. A Form 1040 with a U.S. territory entity address that has a valid Form 2555 with a tax home in a foreign country is assigned to FLC 20. If a return has any of the following characteristics and does not have an LB&I stamp indicating LB&I has already reviewed it, route the return to Stop 4301 AUSC: "Relief for Certain Former Citizens" , "Relief" , "Expat" , "FAQ 24" , "FAQ 25" , or something similar is written on the return and/or attachments Form 8854 is attached. Copy of Certificate of Loss of Nationality (CLN) is attached. Taxpayer specifically mentions "Relief" ," Former Citizen" , "Expatriate process" , "FAQ 24" , "FAQ 25" , or something similar in an attached letter. Form 8898 is attached. 3.22.3.4 (01-01-2024) Form 1042-S Income Codes Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, and Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, are used by withholding agents to report tax withheld at source under Chapter 3 of the Internal Revenue Code on certain income paid to nonresident aliens or foreign corporations not engaged in trade or business in the United States, or tax withheld at source under Chapter 4 of the Code on account holders that did not provide information to their financial institution to report as required under the Foreign Account Tax Compliance Act (FATCA). Below is a listing of income codes, description (type) of income, and where the income should be reported on Form 1040-NR. Form 1042-S Income Code Form 1042-S Income Code Prior Year (If Different) Description (Type) of Income Where Income is Reported on Form 1040-NR (unless specified on Form 1040-NR) 01 Interest paid by United States Obligors-General Page 1, line 2b or Schedule NEC, line 2c 02 Interest Paid on Real Property Mortgages Page 1, line 2b or Schedule NEC, line 2a 03 Interest Paid to Controlling Foreign Corporations Page 1, line 2b or Schedule NEC, line 2c 04 Interest Paid By Foreign Corporations Page 1, line 2b or Schedule NEC, line 2b 05 Interest On Tax-Free Covenant Bonds No reporting required 06 Dividends Paid By United States Corporations - General Page 1, line 3b or Schedule NEC, line 1a 07 Dividends Qualifying for Direct Dividends Rate Page 1, line 3b or Schedule NEC, line 1b 08 Dividends Paid by Foreign Corporations Page 1 line 3b or Schedule NEC line 1b 09 Capital Gains Page 1, line 7 or Schedule NEC, Lines 9 and 18 10 Industrial Royalties Schedule 1, line 5 or Schedule NEC, line 3 11 Motion Picture or Television Copyright Royalties Schedule 1 line 5 or Schedule NEC line 4 12 Other Royalties (e.g., Copyright, Software, Recording, Publishing, Endorsement Payments) Schedule 1, line 5 or Schedule NEC, line 5 13 New in TY 2015 Royalties paid on certain publicly offered securities Schedule 1, line 5 or Schedule NEC, line 5 14 13 (TY 2014 and prior) Real Property Income and Natural Resources Royalties Schedule 1, line 5 or Schedule NEC, line 6 15 14 (TY 2014 and prior) Pensions, Annuities Alimony, and/or Insurance Premiums Page 1, line 5b (pensions and annuities) or Schedule NEC, line 7 (pensions and annuities), Schedule 1, line 2a(alimony) Note: Pension income reported on Form 1042-S should be reported on Schedule NEC, line 7. 16 15 (TY 2014 and prior) Scholarship or Fellowship Grants Schedule 1, line 8r (Form 1040-NR) ) 17 16 (TY 2014 and prior) Compensation for Independent Personal Services Schedule 1, line 3 or 8 or Page,1 line 1k Exception: If the income is earned by a nonresident alien for services performed outside the U.S., the income is NOT taxable. Follow the taxpayer's intent if they do not claim the income and the address on the 1040-NR is outside of the U.S. 18 17 (TY 2014 and prior) Compensation for Dependent Personal Services Page 1, line 1h or 1k (Form 1040-NR) 19 18 (TY 2014 and prior) Compensation for Teaching Page 1, line 1h or 1k (Form 1040-NR) 20 19 (TY 2014 and prior) Compensation during Studying and Training Page 1, line 1h or 1k(Form 1040-NR) Not valid after TY 2015 21 (TY 2015 and prior) Gross Income - Capital Gain Dividend Page 1, line 7 or Schedule NEC, line 9 and 18 22 Interest Paid on Deposit with a Foreign Branch of a Domestic Corporation or Partnership Page 1, line 2b or line 15 23 20 (TY 2014 and prior) Other Income Schedule 1, line 8a - 8z or Schedule NEC, line 12 24 Qualified Investment Entity (QIE) Distributions of Capital Gains Page 1, line 7 or Schedule NEC, Lines 9 and 18 25 Trust Distributions Subject to IRC 1445 Schedule 1, line 8a - 8z or Schedule NEC, line 12 26 Unsevered Growing Crops and Timber Distributions By a Trust Subject to IRC 1445 Schedule 1, line 8a - 8z or Schedule NEC, line 12 27 Publicly Traded Partnership Distributions Subject to IRC 1446(a) Schedule 1, line 8a - 8z or Schedule NEC, line 12 28 Gambling Winnings Schedule NEC, line 10a or line 11 (depending on country of residence) 29 Deposit Interest Schedule NEC line 12 30 Original Issue Discount (OID) Schedule NEC, line 12 31 Short-Term OID Schedule NEC, line 9 32 Notional Principal Contract income Schedule 1 line 8a - 8z or Schedule NEC line 12 33 Substitute Payment - Interest Page 1, line 2b or Schedule NEC, line 2c 34 Substitute Payment - Dividends Page 1, line 3b or Schedule NEC, line 1a 35 Substitute Payment - Other Schedule 1, line 8z or Schedule NEC, line 12 36 Capital Gains Distributions Page 1, line 7 or Schedule NEC, Lines 9 and 18 37 Return of capital Usually, not reported 38 Eligible deferred compensation items subject to IRC 877A(d)(1) Page 1, line 1h 39 Distribution from a nongrantor trust subject to IRC 877A(f)(1) Schedule NEC, line 12 40 Other dividend equivalents under IRC 871(m) (formerly 871(l)) Schedule 1, line 8a - 8z or Schedule NEC, line 12 41 Guarantee of Indebtedness Schedule 1, line 8a - 8z or Schedule NEC line 12 42 20 (TY 2011 and prior) Earnings as an Artist or Athlete without a central withholding agreement Page 1, line 1h, or 1k, or Schedule 1, line 3(Form 1040-NR) 43 Earnings as an Artist or Athlete with a central withholding agreement Page 1, line 1h or 1k, or Schedule 1, line 3(Form 1040-NR) 44 Specified Federal procurement payments Schedule 1, line 8a - 8z 50 Income previously reported under escrow procedure No reporting required 51 New in TY 2015 Note: In TY 2014 Income Code 51 was “Other Income”. Interest paid of certain actively traded or publicly offered securities Page 1, line 2b or Schedule NEC, line 2 52 New in TY 2015 Dividends paid on certain actively traded or publicly offered securities Page 1, line 3b or Schedule NEC, line 1 53 New in TY 2015 Substitute payments - dividends from certain actively traded or publicly offered securities Page 1, line 3b or Schedule NEC, line 1 54 New in TY 2017 Note: In TY 2015-2016, Income Code 54 was “Other Income” Substitute payments - interest from certain actively traded or publicly offered securities Page 1, line 2b or Schedule NEC, line 2 55 New in TY 2019 Taxable death benefits on life insurance contracts Schedule 1, line 8a - 8z or Schedule NEC, line 12 56 New in TY 2022 Dividend equivalent 871(m) transaction combination Page 1, line 3b or Schedule NEC, line 1a 57 New in TY 2022 Section 1446(f) amount realized from publicly traded partnerships (PTPs) Schedule 1, line 8 or Schedule NEC, line 12 When taxpayer files a Form 1040 and the only income reported is from Form 1042-S, Code & Edit is instructed to correspond for the filer's U.S. status. If Code & Edit did NOT correspond, search the return and attachments for a statement that identifies the taxpayer as a U.S. citizen or resident alien filing Form 1040. If no statement is attached SSPND 215 and select paragraph X on Form 13900. (Refer to instructions at IRM 3.22.3.269.3.3 if the income or withholding is from Form SSA/RRB 1042-S.) Note: If a taxpayer is reporting worldwide income on a Form 1040, enter the Form 1042-S withholding in Field 05OTH and enter "S" in Field 05TYP. 3.22.3.5 (01-01-2024) United States Income Reporting Requirements United States citizens and resident aliens are required to file Form 1040, and must report 100 percent of their worldwide income. Worldwide income is income from all sources and includes foreign and United States income. Nonresident aliens are generally required to report ONLY U.S. source income, and income that is effectively connected to a U.S. trade or business, on Form 1040-NR. A nonresident alien is not required to report U.S. source income that has been withheld upon properly at the source or any foreign source income received unless the nonresident alien is entitled to a claim for a refund for overpaid taxes. Nonresident aliens may file Form 1040-NR in order to receive credits or refunds of taxes over withheld amounts. Income received from U.S. payers will in most cases constitute U.S. source income. In addition, income received from foreign payers may also constitute U.S. source income in certain circumstances such as income received for services performed in the United States and income received for the use of intangibles in the United States. Note: However, if the foreign individuals perform their services entirely outside of the United States, the income they receive from U.S. payers is not subject to withholding or U.S. income taxes. If the payers did withhold, then the nonresident aliens are required to file Form 1040-NR to receive credits or refunds of the taxes withheld. A taxpayer who is a U.S. citizen or resident alien and a nonresident alien within the same tax year files a dual-status tax return. Income is reported using the reporting rules that apply to the taxpayer’s residency status for each part of the year. 3.22.3.6 (11-08-2021) Dual-Status - General Information A taxpayer who is a resident alien and a nonresident alien in the United States within the same tax year files a dual-status tax return. This condition usually occurs in the year of arrival or departure from the United States. The taxpayer will file Form 1040 or Form 1040-NR for the tax year based on the taxpayer's residence status on the last day of the year. The taxpayer will file a return using Form 1040 if a resident of the United States on the last day of the tax year. The taxpayer will file a return using Form 1040-NR if not a resident of the United States on the last day of the tax year. If the requirements are met, a dual-status alien may elect to be treated as a resident for the entire year. Follow the intent of the taxpayer and process the tax form that is identified as the "Dual-Status Return" if there is an indication they entered or left the United States in December. See question G Schedule OI, Form 1040-NR. Process a Form 1040-NR as dual-status if the taxpayer identifies the return as a "Dual-Status Return" and attached a Form 8854, Initial and Annual Expatriation Statement. If unable to determine which return to process from Schedule OI of Form 1040-NR or an attached statement elsewhere on the return, process the tax form that is identified by the taxpayer as the "Dual-Status Return" . If unable to determine which tax form should be processed as the return following (a) through (f) above, correspond for dual-status dates using paragraph W of Form 13900 for Letter 4087C. Restrictions for Dual-Status Taxpayers -see EC 218 at IRM 3.22.3.173.2.4, and EC 250 at IRM 3.22.3.193.2.3. Tax Treaties - In general, dual-status taxpayers may be eligible for tax treaty benefits only on income received during the period that they are nonresident aliens. The country, the amount of income exempt by a tax treaty, and the tax treaty article under which an exemption is claimed must be reported on Form 1040-NR. See EC 218 at IRM 3.22.3.173.2.4, and EC 250 at IRM 3.22.3.193.2.3.3. Exception: Resident Aliens may be entitled to treaty benefits with respect to certain categories of income. A Form 1040-NR (or substitute statement) may be attached to a Form 1040 dual-status return as a statement (worksheet) if the taxpayer was a resident in the United States on the last day of the tax year. Similarly, a Form 1040 (or substitute statement) may be attached to a Form 1040-NR dual-status return as a statement (worksheet) if the taxpayer was a resident outside the United States on the last day of the tax year. Check the Form 1040, Form 1040-NR, (or substitute statements) to ensure that Code & Edit has combined all information onto the controlling form. When processing Form 1040-NR, and Itemized Deductions are claimed on Schedule A of Form 1040 that do not have a corresponding line on Schedule A of Form 1040-NR, enter the amount(s) in Field 0707. 3.22.3.7 (11-27-2020) Streamlined Filing Compliance Procedures The Streamlined Filing Compliance Procedures were made available to taxpayers on September 1, 2012, and the IRS significantly expanded the procedures effective July 1, 2014. The governing documents for the Streamlined Filing Compliance Procedures consist of the pages on IRS.gov outlining the procedures and the interpretative Frequently Asked Questions (FAQ). Returns submitted using the Streamlined Filing Compliance Procedures will have blocking series from 850 - 899 and specific program number 46117 (Form 1040). Both primary and secondary taxpayers must have a valid TIN on a return submitted using the Streamlined Filing Compliance Procedures, either a Social Security number (SSN) or individual taxpayer identification number (ITIN). A TIN assigned by the IRS (IRSN) is invalid. Don’t correspond for a missing TIN on a return submitted using the Streamlined Filing Compliance Procedures. If the TIN is missing and not found after searching the return and after research, then suspend with Action Code 320 to Entity for assignment of an IRSN for primary taxpayer. When the return comes back from Entity with an IRSN, follow the instructions in EC 005 at IRM 3.22.3.82.2 before entering RPC O. If the TIN is present but invalid, follow the applicable instructions in Error Code 004 at IRM 3.22.3.81.2 and Error Code 005 before entering RPC O. Returns that are eligible for the Streamlined Filing Compliance Procedures are coded with SPC "P" . If missing, enter this code on the return and in Field 01SPC, unless directed to remove the code in EC 004, or EC 005, or after correspondence. Each taxpayer's submission must be kept together. Example: If one return needs to be cleared by Statute, send all returns as a package and do not separate. A Form 3210 will be used initially to control which returns are being sent to Statute. Returns that are eligible for the Streamlined Filing Compliance Procedures should also be coded with a CCC "M" , CCC "R" , and CCC "P" . If missing, enter these codes on the return and in Field 01CCC, unless directed to remove the codes in EC 004, EC005, or after correspondence. 3.22.3.7.1 (06-29-2016) Form 1040-NR, Form 1040-SS (sp), and Form 1040-SS Submitted Using the Streamlined Filing Compliance Procedures If forms other than Form 1040 or Form 1040-X are submitted using the Streamlined Filing Compliance Procedures, then route to LB&I MS 4305 AUSC if there’s no indication of prior LB&I review. Note: If all returns submitted are Form 1040-NR, then the notation of "Streamlined" will be circled out in red. Follow normal processing and do not route to LB&I for review. Upon receipt of the returns back from LB&I, follow the procedures outlined by LB&I. 3.22.3.7.2 (06-29-2016) Amended or Duplicate Returns Submitted Using the Streamlined Filing Compliance Procedures If the Streamlined Certification Form 14653 or Form 14654 is marked "Amended" then the returns must be reviewed by LB&I before processing. If an amended certification form is attached to an amended return, and there isn't an indication of prior LB&I review, then route all the returns submitted to MS 4305 AUSC. Philadelphia Accounts Management processes amended returns submitted using the Streamlined Filing Compliance Procedures. Each taxpayer's submission must be kept together even if the submission includes original and amended returns. If a 1040-X is included with original returns, the 1040-X must stay with the original returns until processing is complete. If no correspondence is required, the submission can be separated, and the Form(s) 1040-X need to be routed to Image Control Team (ICT), MS 6567 AUSC with a Streamlined Accounts Management cover sheet. Be sure to keep all 1040-X returns being routed to ICT together using one cover sheet. Note: A copy of the certification must be attached to each 1040-X before routing to ICT. If correspondence is required keep the submission together until a reply is received or the suspense period has expired. 3.22.3.7.3 (01-01-2018) Corresponding on Returns Submitted Using the Streamlined Filing Compliance Procedures If correspondence is necessary for any return submitted under the Streamlined Filing Compliance Procedures, all returns submitted by the taxpayer must be kept together. This means that if one return needs correspondence then all returns in the submission must be kept with the suspended return(s) and held together in the Suspense area. Don’t correspond for missing information related to the streamline procedures (paragraphs A through E on Form 13900) if the primary taxpayer doesn’t have a valid TIN (SSN or ITIN). Follow the instructions in IRM 3.22.3.7 (4) and process as a return not filed using Streamlined Filing Compliance Procedures. If correspondence is needed for issues related to Streamlined Filing Compliance Procedures as listed in "Types of Correspondence" at IRM 3.22.3.7.3.1, use Letter 4087C and correspond for these issues and all required information missing on the return. Note: If a signature is missing, DO NOT send the return back to the taxpayer. Use Letter 4087C to request the taxpayer's signature. 3.22.3.7.3.1 (04-28-2022) Types of Correspondence for Returns Submitted Using the Streamlined Filing Compliance Procedures Streamlined Certification - The taxpayer is required to attach a signed certification with a submission. The required certification depends on the type of filing. Taxpayers meeting the Streamlined Foreign Offshore Procedures non-residency requirement for one of the three most recent submission years use Form 14653, Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures. Taxpayers using Streamlined Domestic Offshore Procedures submit Form 14654, Certification by U.S. Person Residing in the United States for Streamlined Domestic Offshore Procedures. Follow the procedures below to correspond. SSPND 215 and select the indicated paragraphs on Letter 4087C using Form 13900. Note: Suspend all returns in the submission when corresponding with these paragraphs. If And Then Certification is missing, SSPND 231 and correspond selecting paragraphs A and B. Signature(s) is missing, SSPND 215 and correspond selecting paragraphs A and C and\. Note: If the tax return is filed Married Filing Jointly then correspond if one or both signatures are missing. Computation and amount of Miscellaneous Offshore Penalty (MOP) is missing, The Certification is for Streamlined Domestic Offshore (SDO) Procedures (Form 14654), SSPND 215 and correspond selecting paragraphs A and D. Note: Code & Edit detaches the certification with the original signature and routes to LB&I and ensures that a copy of the signed certification is attached to each return. If the original certification is still attached, photocopy and attach a copy to each return and route the original to LB&I at MS 4305 AUSC. Note: A substitute certification form is acceptable as long as it contains all the relevant information listed above including a signature under a jurat. 3.22.3.7.3.2 (01-01-2018) Replies to Correspondence for Returns Submitted Using the Streamlined Filing Compliance Procedures If the correspondence was issued for incomplete certification, and all required information is now completed, do the following: If Then A reply contains an original return that was missing from the initial submission, Walk the unprocessed return(s) through the pipeline to be processed. Associate the newly processed return(s) with the submission being held in Suspense and follow the IRM procedures for returns filed using the Streamlined Filing Compliance Procedures. Submission contains only original 1040 family returns, Edit CCC "M" , CCC "R" , and CCC "P" on each return in the submission. Delete CCC "N" if present. Ensure a copy of the completed certification is attached to each tax return. Route original certification to LB&I MS 4305 AUSC. Submission contains both original and amended returns (Form 1040-X), Separate the submission between original and amended returns. Edit CCC "M" , CCC "R" , and CCC "P" on each return in the submission. Delete CCC "N" if present. Note: Do not edit CCCs on Form 1040-X. Place an AM Streamlined cover sheet along with a copy of the completed certification on each Form 1040-X and route to AM. Route original certification to LB&I MS 4305 AUSC. For incomplete replies or no replies see Exhibit 3.22.3-10. 3.22.3.8 (01-01-2024) Form 1040 With Form 2555 - Purpose of Form Form 2555 must be attached if any of the following indications are on Form 1040: IRC 911 A notation to see Form 2555 Foreign Housing Exclusion, Line 8z, Schedule 1, of Form 1040 (negative amount) Foreign Earned Income Exclusion, Line 8d, Schedule 1, of Form 1040 (negative amount) Foreign Housing Deduction, line 24j Schedule 1, of Form 1040 A taxpayer with foreign earned income is entitled to claim the following exclusions and/or deductions on Form 2555 : Foreign-Earned Income Exclusion (Part VII); and/or Housing Deduction, if housing costs were paid from self-employment earnings (Part VI and IX); or Housing Exclusion, if housing costs were paid for with employer-provided amounts (Part VI and VIII). A U.S. citizen or resident alien may use Form 2555 to exclude a limited amount of their foreign earned income and claim housing exclusion or deduction: Tax Year Maximum Foreign Earned Income Exclusion 2023 $120,000 2022 $112,000 2021 $108,700 2020 $107,600 2019 $105,900 2018 $103,900 2017 $102,100 2016 $101,300 2015 $100,800 2014 $99,200 2013 $97,600 2012 $95,100 2011 $92,900 2010 $91,500 2009 $91,400 2008 $87,600 2007 $85,700 2006 $82,400 2002 through 2005 $80,000 For TY18 and prior , a U.S. citizen or resident alien living and working in a foreign country may use Form 2555-EZ to exclude a limited amount ($103,900 for TY 2018) of his or her foreign earned income. However, if any of the below conditions apply, the taxpayer must use Form 2555: Foreign earned income is from self-employment; The total foreign earned income exclusion exceeds the maximum amount Note: A taxpayer cannot claim more than the maximum amount on Form 2555 however this amount may indicate the taxpayer adding housing exclusion or business/moving expenses to their total exclusion amount ; Form 2555-EZ includes business or moving expenses; or Form 2555-EZ is used to claim housing exclusion or deduction. Foreign earned income from a foreign country is wages or compensation for any personal services performed in any foreign country. It does not include U.S. territories. Caution: Federated States of Micronesia, Marshall Islands, and Palau are treated as foreign countries for income tax purposes, and thus are eligible for the foreign earned income exclusion. These returns must be processed as FLC 20. Unearned income may not be excluded on Form 2555 or Form 2555-EZ TY18 and prior. To avoid double taxation, foreign taxes paid on unearned income can be: Claimed as a credit on Form 1116, or Reported as a deduction on line 6 of Schedule A A taxpayer can’t claim a foreign tax credit or deduction for taxes paid on foreign earned income that was also excluded on Form 2555 or Form 2555-EZ. U.S. citizens must report their worldwide income; so, taxpayers living or working outside the United States must file a U.S. income tax return. A taxpayer qualifies for the foreign earned income exclusion under IRC 911 if the taxpayer meets the requirements of having a "tax home" in a foreign country or countries and is either: A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period (regardless of physical presence) which includes an entire taxable year; or A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty with an applicable nondiscrimination clause and who is a bona fide resident of a foreign country for an uninterrupted period that includes an entire taxable year; or A U.S. citizen or resident alien who has been physically present in a foreign country or countries for at least 330 days during any period of 12 consecutive months Note: If the taxpayer has a partial tax year that falls within the qualifying period, the exclusion must be prorated for the partial year. 3.22.3.9 (01-01-2020) U.S. Territories - General Information The following is a list of U.S. territories: American Samoa - AS Commonwealth of the Northern Mariana Islands - CNMI Guam - GU Puerto Rico - PR United States Virgin Islands - USVI To qualify for certain tax benefits, the taxpayer must be a U.S. citizen or resident alien and a bona fide resident of U.S. territory for the entire tax year. A bona fide resident of one of these U.S. territories is an individual taxpayer who: Does not have a tax home outside the relevant U.S. territory, Does not have a closer connection to the United States or to a foreign country, Meets the presence test. To satisfy the presence test for the entire year, the taxpayer must meet one of the conditions in the table below. Present in the relevant U.S. territory for at least 183 days during the tax year, Present in the relevant U.S. territory for at least 549 days during the three-year period consisting of the current taxable year and the preceding two tax years, provided the taxpayer was also present in the U.S. territory for at least 60 days during each tax year of the three-year period, Present in the United States for no more than 90 days during the tax year, Earned income (pay for personal services performed, such as wages, salaries or professional fees) from the United States of no more than $3,000 and was present for more days in the U.S. territory than the United States during the tax year. No significant connection to the United States during the tax year, such as a permanent home, voter registration or spouse/minor child in the United States. Note: It is often difficult to determine bona fide residency based on the test above. Therefore, for the purpose of processing income tax returns the following additional guidance is being given. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Exception: For members of the U.S. Armed Forces see paragraph (4) below. For spouses of U.S. servicemembers see paragraph (5) below. Taxpayers that reside in any of the U.S. territories cannot claim the Earned Income Credit except in limited circumstances. Refer to EC 337 at IRM 3.22.3.253.1 and EC 338 at IRM 3.22.3.254.1. The Servicemembers Civil Relief Act of 2003 (SCRA) provides special rules relating to a servicemember's residence for tax purposes. Under SCRA, a servicemember retains his or her jurisdiction of residence with the Department of Defense or equivalent for income tax purposes. A servicemember's residence is his or her "state of legal residence" (SLR), which is also known as home state, home of record, state of domicile, or state of residence. When the SLR is not a U.S. territory and the servicemember resides in a U.S. territory solely in compliance with military orders, the servicemember must file an income tax return with the IRS. When the SLR is a U.S. territory and the servicemember resides outside that territory solely in compliance with military orders, the servicemember must file an income tax return with the SLR territory. For further information, see Publication 570, Tax Guide for Individuals With Income from U.S. Possessions. The Military Spouses Residency Relief Act of 2009 (MSRRA) provides special rules relating to civilian spouses of U.S. servicemembers for tax purposes. Under MSRRA, a civilian spouse of an active duty servicemember can choose to keep his or her prior residence or domicile for income tax purposes when accompanying the servicemember spouse who is relocating under military orders to a new military duty station in one of the 50 states, the District of Columbia, or a U.S. territory. Before relocating, the civilian and military spouse must have the same tax residence. For further information, See Pub 570, Tax Guide for Individuals With Income From U.S. Possessions. Bona fide residents of American Samoa and Puerto Rico who are civilian spouses of servicemembers who are stationed in one of the 50 states or the District of Columbia in compliance with military orders, have non-U.S. government income, are subject to U.S. withholding, and are claiming a refund of federal income taxes should follow the procedures in Notice 2010-30, Notice 2011-16, and Notice 2012-41. 3.22.3.9.1 (01-01-2020) The American Jobs Creation Act of 2004 The American Jobs Creation Act of 2004 (AJCA) clarified and supplemented the U.S. tax rules dealing with U.S. territories for determining if a taxpayer is a bona fide resident of a U.S. territory and whether income is from a territory source or effectively connected with the conduct of a U.S. territory trade or business. Residence Rules - In general, IRC 937(a) provides rules for determining whether a taxpayer is a bona fide resident of a U.S. territory. Source Rules - In general, IRC 937(b) provides that the principles for determining whether income is U.S. source and whether income is effectively connected with the conduct of a United States trade or business are applicable for purposes of determining whether income is U.S. territory source and whether income is effectively connected with the conduct of a trade or business in a U.S. territory. The regulations also generally provide that under the "U.S. Income Rule" of IRC 937(b)(2): Income from United States sources is not treated as income that is U.S. territory source or effectively connected with the conduct of a U.S. territory trade or business, and Income that is effectively connected with the conduct of a United States trade or business is not treated as U.S. territory source or effectively connected with U.S. territory trade or business. The regulations provide the following exceptions to these rules: The regulations preserve the existing treatment of income from the sale of goods manufactured in a U.S. territory, which provides for the allocation of this income between U.S. territory sources. The regulations provide that gains from the disposition of certain property by a United States citizen or resident who owned the property on the date they became a bona fide resident of the U.S. territory may not be treated as from sources within a U.S. territory. This special gain rule applies to the disposition of certain property such as stocks, bonds, debt instruments, and other property that is held for investment. However, the taxpayer may elect to split the source of gains from the disposition of appreciated property subject to this rule by using a market-to-market allocation for marketable securities and a time-based allocation for other property. The regulations also provide certain anti-abuse rules for determining the source of dividends and interest from U.S. territory corporations. 3.22.3.9.1.1 (01-01-2020) Form 8898 - Statement for Individuals Who Begin or End Bona Fide Residence in a United States Possession Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a United States Possession, is used to notify the IRS that an individual became or ceased to be a bona fide resident of a U.S. Territory. The form must be filed by individuals who have worldwide gross income in the tax year greater than $75,000 and who: Take a position for United States tax purposes that they became a bona fide resident of a U.S. territory after a tax year for which they filed a United States tax return as a citizen or resident of the United States, but not as a bona fide resident of the U.S. territory, Are a citizen or resident of the United States and take the position for United States tax purposes that they ceased to be a bona fide resident of a U.S. territory after a tax year for which they filed an income tax return as a bona fide resident of a U.S. territory, Take a position for United States tax purposes that they became a bona fide resident of Puerto Rico or American Samoa after a tax year for which they were required to file an income tax return as a bona fide resident of the United States Virgin Islands, Guam or the CNMI. 3.22.3.9.2 (01-01-2013) American Samoa - General Information American Samoa has its own separate and independent income tax system. Bona fide residents of American Samoa are generally exempt from United States tax on their American Samoa source income. United States Armed Forces - Bona fide residents of American Samoa include military personnel whose official home of record (i.e., SLR) is American Samoa. See instructions at IRM 3.22.3.9 above. 3.22.3.9.2.1 (01-01-2016) American Samoa (AS) - Which Returns To File Generally, returns will be filed with both the American Samoa (AS) and the United States. The income reported on each return depends on the taxpayer's residency status in American Samoa. Bona Fide residents may have to file 2 returns: • AS with worldwide income • U.S. with worldwide income excluding AS income Non-Bona Fide residents may have to file 2 returns: • AS with only AS income • U.S. with worldwide income If the taxpayer is a United States citizen, resident alien or nonresident alien and a bona fide resident of AS during the entire tax year, they generally must file the following returns: An AS tax return to report gross income from worldwide sources. A United States tax return to report income from worldwide sources, but exclude income from sources within AS (IRC 931). Form 4563 can be attached. See IRM 3.22.3.9.2.1.2 Note: A taxpayer who is a bona fide resident of AS and has only income derived from sources in AS, doesn’t have a United States income tax filing obligation. Exception: Income received for services performed as an employee of the United States government or any of its agencies cannot be excluded from the United States tax return. If the United States government wages are reported on both the United States and AS tax returns, Form 1116 can be attached to the United States tax return to claim credit for the taxes paid to AS. If the taxpayer is a United States citizen, resident alien or nonresident alien and not a bona fide resident of AS during the entire tax year, they generally must file the following returns: An AS tax return to report only income from sources within AS. A United States tax return to report income from worldwide sources. Form 1116 can be used to claim a credit for income taxes paid to American Samoa on American Samoa source income subject to double taxation for income taxes. Exception: Nonresident aliens report only U.S. source and U.S. effectively connected income. 3.22.3.9.2.1.1 (11-27-2020) Processing Form 1040 With Income or Address From American Samoa If it appears the taxpayer is a bona fide resident of American Samoa (AS) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ all income is from AS: SSPND 640 to send the return to Rejects to delete the DLN out of the system. Prepare Form 3696A to initiate Letter 86C to inform the taxpayer that his/her return has been transshipped to the Tax Division Government of American Samoa for processing Send the return to: American Samoa Tax Office Executive Office Building First Floor Pago-Pago AS 96799 If there is no indication that the taxpayer is a bona fide resident of American Samoa, continue processing the return. 3.22.3.9.2.1.2 (01-01-2013) Form 4563 - Exclusion of Income for Bona Fide Residents of American Samoa Form 4563, Exclusion for Bona Fide Residents of American Samoa, is used to figure the amount of income from sources within American Samoa that may be excluded in accordance with IRC 931 from gross income on Form 1040. This exclusion may be claimed if a taxpayer is a United States citizen, resident alien or nonresident alien and a bona fide resident of AS. Eligible taxpayers will file Form 1040 and: Attach Form 4563, and Report worldwide income Income that can be excluded in accordance with IRC 931: Income received from sources in AS, and Income effectively connected with the conduct of a trade or business in AS. Caution: Income received for services performed as an employee of the United States government or any of its agencies is not excluded from gross income under IRC 931. If the taxpayer claims the exclusion in accordance with IRC 931, the following are examples of deductions and credits that will be limited on Form 1040: The standard deduction Certain itemized deductions such as medical and dental expenses, gifts to charity, and real estate taxes and mortgage interest on personal residence. 3.22.3.9.3 (01-01-2023) Commonwealth of the Northern Mariana Islands (CNMI) - General Information The CNMI has its own income tax system based partly on the same tax laws and tax rates that apply to the United States, and partly on local taxes imposed by the CNMI government. In general, all individuals with income from the CNMI will file only one return, either with CNMI or the United States. The taxpayer's residency status under IRC 937(a) with respect to the CNMI determines which return they will file. Exception: See below for procedures for active and reserve military members. Bona Fide residents with worldwide income -- if properly filed with CNMI, a taxpayer will not have to file a return with the U.S. Non-Bona Fide residents with worldwide income -- taxpayer is instructed to claim withholding from both U.S. and CNMI on a U.S. income tax return. Taxpayers that reside in any of the U.S. territories cannot claim Earned Income Credit except in limited circumstances. Refer to IRM 3.22.3, EC 337 and EC 338. Members of the U.S. Armed Forces who: Qualify as a bona fide resident of the CNMI in a prior tax year, and are absent from the CNMI solely in compliance with military orders must file with CNMI Did not qualify as a bona fide resident of the CNMI in a prior tax year, and are present in the CNMI solely in compliance with military orders must file with the IRS. 3.22.3.9.3.1 (01-01-2013) CNMI - Which Returns To File If the taxpayer is a United States citizen, resident alien or nonresident alien and a bona fide resident of the CNMI during the entire tax year, they must file their income tax return with the CNMI. If the taxpayer is a United States citizen or resident alien and not a bona fide resident of the CNMI during the entire tax year, they must file their income tax return with the United States. The tax return will include: Form 1040 reporting income from worldwide sources All income tax withheld by either the United States or CNMI Any credit for overpayment of income tax to either the United States or CNMI Any payments of estimated tax to either the United States or CNMI Payment of any balance of tax due Form 5074 if the adjusted gross income is $50,000 or more for the tax year and gross income of $5,000 or more is from sources within the CNMI. Exception: Military employees do not require a Form 5074. If the taxpayer is a nonresident alien of the United States and not a bona fide resident of CNMI during the entire tax year, they must do the following: File a CNMI income tax return to report only their CNMI source income. Note: In this situation CNMI source income is any income received for services performed in CNMI, even if they were paid by the U.S. government. A United States tax return (Form 1040-NR) to report U.S. source income. 3.22.3.9.3.1.1 (11-27-2020) Processing Form 1040 With Income or Address From CNMI If there is an indication that the taxpayer is a bona fide resident of CNMI, see IRM 3.22.3.9 and follow the instructions below: SSPND 640 to send the return to Rejects to delete the DLN out of the system. Prepare Form 3696A to initiate Letter 86-C to inform the taxpayer that his/her return has been transshipped to the Division of Revenue and Taxation of CNMI for processing. Send return to: Commonwealth of the Northern Mariana Islands Division of Revenue and Taxation P.O. Box 5234, CHRB Saipan, MP 96950 If there is no indication that the taxpayer is a bona fide resident of CNMI, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ continue processing the return allowing any withholding from CNMI. 3.22.3.9.3.1.2 (01-01-2020) Form 5074 - Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI) Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI), provides information to the United States so that the IRS can figure the individual income tax that is due to Guam or CNMI. Taxpayers must file Form 5074 when all three of the following apply: Taxpayer files a United States income tax return on Form 1040, Taxpayer reports adjusted gross income of $50,000 or more, and At least $5,000 of the gross income on their return is from Guam or CNMI sources When Form 5074 is attached, Code & Edit will enter Audit Code "L" on the return. If Then Code & Edit did not edit Audit Code "L" , Enter "L" in Field 01ACD. Section 02 is present, Delete the entries in the unallowable fields and make the necessary adjustments to prevent the computer from generating unallowable codes. Note: When Form 5074 is attached, all amounts on it must be included on the Form 1040. Enter amounts in appropriate fields as necessary. Form 5074 is not filed with the U.S. territories per form instructions. 3.22.3.9.4 (01-01-2013) Guam - General Information Guam has its own income tax system based partly on the same tax laws and tax rates that apply to the United States In general, all individuals with income from Guam will file only one return, either with Guam or the IRS. The taxpayer's residency status regarding Guam determines which return they will file. Members of the U.S. Armed Forces who: Qualify as a bona fide resident of Guam in a prior tax year, and are absent from Guam solely in compliance with military orders, must file with Guam Did not qualify as a bona fide resident of Guam in a prior tax year, and are present in the Guam solely in compliance with military orders, must file with the IRS. 3.22.3.9.4.1 (01-01-2013) Guam - Which Returns To File If the taxpayer is a United States citizen, resident alien or nonresident alien and a bona fide resident of Guam during the entire tax year, they must file their income tax return with Guam. If the taxpayer is a United States citizen or resident alien and not a bona fide resident of Guam during the entire tax year, they must file their income tax return with the IRS. The tax return will include: Form 1040 reporting income from worldwide sources All income tax withheld by either the United States or Guam Any credit for overpayment of income tax to either the United States or Guam Any payments of estimated tax to either the United States or Guam Payment of any balance of tax due Form 5074 if the adjusted gross income is $50,000 or more for the tax year and gross income of $5,000 or more is from sources within Guam. Exception: Military employees do not require a Form 5074. If the taxpayer is a nonresident alien of the United States and not a bona fide resident of Guam during the entire tax year, they must do the following: File a Guam income tax return to report only their Guam source income. Note: In this situation Guam source income is any income received for services performed in Guam, even if they were paid by the U.S. government. A United States tax return (Form 1040-NR), to report U.S. source income. 3.22.3.9.4.1.1 (01-01-2024) Processing Form 1040 With Income or Address From Guam If there is an indication that the taxpayer is a bona fide resident of Guam, see IRM 3.22.3.9 and follow instructions below: SSPND 640 to send the return to Rejects to delete the DLN out of the system. Prepare Form 3696A to initiate Letter 86-C to inform the taxpayer that his/her return has been transshipped to the Department of Revenue and Taxation of Guam SSPND 640 Send the return to: Department of Revenue and Taxation Taxpayer Services Division P.O. Box 23607 GMF, GU 96921 If there is no indication that the taxpayer is a bona fide resident of Guam, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ continue processing the return. 3.22.3.9.4.1.2 (01-01-2015) Form 5074 - Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI) Form 5074 - Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI), provides information to the United States so that the IRS can figure the individual income tax that is due to Guam or CNMI. Taxpayers must file Form 5074 when all three of the following apply: Taxpayer files a United States income tax return on Form 1040, Taxpayer reports adjusted gross income of at least $50,000 or more, and At least $5,000 of the gross income on their return is from Guam or CNMI sources When Form 5074 is attached, Code & Edit will enter Audit Code "L" on the return. If Then Code & Edit did not edit Audit Code "L" , Enter "L" in Field 01ACD. Section 02 is present, Delete the entries in the unallowable fields and make the necessary adjustments to prevent the computer from generating unallowable codes. 3.22.3.9.5 (01-01-2013) Puerto Rico (PR) - General Information The Commonwealth of Puerto Rico has its own separate independent income tax system. Generally, the taxpayer will file returns with both Puerto Rico and the IRS. The income reported on each return depends on the taxpayer's residency status in Puerto Rico. See IRM 3.22.3.9 for instructions in determining if the taxpayer is a bona fide resident of Puerto Rico. 3.22.3.9.5.1 (01-01-2024) Puerto Rico (PR) - Which Returns To File Generally, returns will be filed with both Puerto Rico and the United States. The income reported on each return depends on the taxpayer's residency status in Puerto Rico. United States citizens or resident aliens who are also bona fide residents of PR during the entire tax year may have to file 2 returns: • PR with worldwide income • U.S. with worldwide income, excluding PR income Note: If all the income is from PR sources, a U.S. tax return is not required. However, taxpayers who have effectively connected net business income of more than $400 from a trade or business in PR must file a Form 1040-SS (sp)/ Form 1040-SS to pay self-employment tax. U.S. citizens or resident aliens who aren’t bona fide residents may have to file 2 returns • PR with only PR income • U.S. with worldwide income, claiming a foreign tax credit for income taxes paid to PR. If the taxpayer is a United States citizen or resident alien and a bona fide resident (as explained in IRM 3.22.3.9) of Puerto Rico during the entire tax year, they must do the following: File a Puerto Rican return to report income from worldwide sources. If the taxpayer has income from other than PR sources, they must also file a United States tax return to report income from worldwide sources, but exclude Puerto Rico source income (IRC 933). The taxpayer will not be allowed any deductions or credits that are directly or indirectly allocable to exempt income. Exception: Income received for services performed as an employee of the United States government or any of its agencies cannot be excluded from the IRS tax return. If United States government wages are reported on both the IRS and Puerto Rican tax returns, Form 1116 can be attached to the IRS tax return to claim a credit for income taxes paid to Puerto Rico. Note: U.S. government cost of living allowances are excludable from U.S. income tax. If the taxpayer doesn’t have any income other than PR source income, they are only required to file a Puerto Rican return. If the taxpayer is a nonresident alien of the United States and a bona fide resident of Puerto Rico during the entire tax year, they must file the following returns: A Puerto Rican tax return to report income from worldwide sources. A United States tax return to report income from worldwide sources, but exclude Puerto Rican source income (IRC 933). The taxpayer isn’t allowed to claim the standard deduction, cannot file a joint return, and is not allowed deductions for dependents unless the person is a citizen or national of the United States, a resident of the United States, or a resident of a country contiguous to the United States. Exception: Income received for services performed as an employee of the United States government or any of its agencies cannot be excluded. If United States government wages are reported on both the IRS and Puerto Rican tax returns, Form 1116 can be attached to IRS tax return to claim a credit for the taxes paid to Puerto Rico. If the taxpayer is a United States citizen or resident AND not a bona fide resident of Puerto Rico during the entire tax year, they must file the following returns: A Puerto Rican tax return to report income from Puerto Rican sources. A United States tax return to report income from worldwide sources. Form 1116 can be attached to claim credit for income taxes paid to Puerto Rico or Puerto Rico source income subject to double taxation. If the taxpayer is a nonresident alien of the United States AND does NOT qualify as a bona fide resident of Puerto Rico, the taxpayer must file the following returns: A Puerto Rican tax return to report income from Puerto Rican sources. A United States tax return, Form 1040-NR, according to the rules for a nonresident alien, reporting only U.S. source and U.S. effectively connected income. 3.22.3.9.5.2 (01-01-2024) Processing Form 1040 With Income or Address From Puerto Rico (PR) If the taxpayer is filing Form 1040 with a PR address or PR income, continue processing the return if the taxpayer is a U.S. government employee, or reporting income from outside of PR (worldwide income), or notates IRC 933 anywhere on the return. Do not SSPND 640 to send the return back to the taxpayer. If it appears the taxpayer is a bona fide resident of Puerto Rico (PR)≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, follow the steps below if the instruction in paragraph (1) above doesn’t apply: SSPND 640 to send the return to Rejects to delete the DLN out of the system. For all tax years except TY 21 prepare Form 9143 and mail the return back to the taxpayer with the following narrative : "Since you appear to be a bona fide resident of PR with only PR income, you do not have a U.S. tax filing obligation. However, if you have self-employment income from Puerto Rico and/or you wish to claim the additional Child Tax Credit you must do so on a Form 1040-SS (sp) / Form 1040-SS. Otherwise, if you have not already done so, you should file a return with the Departamento de Hacienda, PO Box 9022501, San Juan, PR 00902-2501" For TY 21 prepare Form 9143 and mail the return back to the taxpayer with the following narrative for TY 21: "Since you appear to be a bona fide resident of PR with only PR income, you do not have a U.S. tax filing obligation. However, if you have self-employment income from Puerto Rico and or you wish to claim the refundable Child Tax Credit you must do so on a Form 1040-SS (sp)/Form 1040-SS. Otherwise, if you have not already done so, you should file a return with the Departamento de Hacienda, PO Box 9022501, San Juan, PR 00902-2501" Note: If the return was filed electronically, DO NOT print out copy of the return for the taxpayer. Prepare Form 9143 as indicated above. If the return was previously rejected per (2) above and the taxpayer resubmits his/her return with no changes or indications as to why they are filing a Form 1040, follow the steps below: SSPND 640 to send the return to Rejects to delete the DLN out of the system. Prepare Form 9143 and mail the return back to the taxpayer with the following narrative: Usted no está obligado a radicar una planilla de impuestos de los EE.UU, ya que usted parece ser residente bona fide de PR y tiene ingresos solamente de PR. Sin embargo, si tiene ingresos del trabajo por cuenta propia de Puerto Rico y/o usted desea reclamar el Crédito tributario adicional por hijos, usted tiene que completar el Formulario 1040-SS (sp). De lo contrario, si usted no lo ha hecho, debe radicar una planilla con el Departamento de Hacienda, PO Box 9022501, San Juan, PR 00902-2501. If there is no indication that the taxpayer is a bona fide resident of Puerto Rico (as indicated above), continue processing the return. 3.22.3.9.6 (01-01-2013) United States Virgin Islands (USVI) - General Information The USVI system of income taxation is based upon the United States Internal Revenue Code as amended. An important factor in USVI taxation is whether, during the entire taxable year, the taxpayer is a bona fide resident of USVI. In general, a bona fide resident of the USVI pays tax only to the USVI. A United States citizen or resident alien who is not a bona fide resident of the USVI, but has USVI source income, is required to pay the allocable portion of the tax to each jurisdiction. 3.22.3.9.6.1 (01-01-2013) United States Virgin Islands - Which Returns To File In general, bona fide residents of the USVI pay taxes only to the USVI. U.S. citizens or resident aliens (but not bona fide residents of the USVI) with USVI source income, pay a portion of tax to each jurisdiction: Bona fide residents -- include your worldwide income on your USVI return. If properly filed with the USVI, a taxpayer will not have to file a return with the United States. Note: Taxpayers who have income that is effectively connected net business income of more than $400 from a trade or business in USVI, must file Form 1040-SS with the United States to pay self-employment tax. Non-bona fide residents with worldwide income -- taxpayer must file identical returns with USVI and the U.S. Form 8689 must be attached to both returns. If the taxpayer is a United States citizen, resident alien, or nonresident alien and a bona fide resident of the USVI (as explained in IRM 3.22.3.9) during the entire tax year, and their gross income is less than $75,000 the taxpayer must file with the USVI and report worldwide income. For taxable years ending before December 31, 2006, if the taxpayer is a United States citizen, resident alien, or nonresident alien and a bona fide resident of the USVI during the entire tax year, and their gross income is $75,000 or more the taxpayer must file with: The USVI and report worldwide income and The IRS, in order to start the U.S. statute of limitations on assessment, as described in Notice 2007-19 Note: The tax return filed with the IRS will include taxpayer's name, address, Taxpayer Identification Number (TIN) and signature. For taxable years ending on or after December 31, 2006, all United States citizens, resident aliens, and nonresident aliens who are bona fide residents of the USVI must file with the USVI and report worldwide income. If the taxpayer is a United States citizen or resident alien and not a bona fide resident of the USVI during the entire tax year, the taxpayer must file identical tax returns with the IRS and the USVI if the taxpayer has: Income from sources in the USVI or Income effectively connected with the conduct of a trade or business in the USVI. Note: The taxpayer will complete and attach Form 8689 to both returns to determine how much tax to pay to the U.S. and to the U.S. Virgin Islands. 3.22.3.9.6.1.1 (11-27-2020) Processing Form 1040 With Income or Address From United States Virgin Islands If there is an indication that the taxpayer is a bona fide resident of USVI ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ SSPND 640 to send the return to Rejects to delete the DLN out of the system. Prepare Form 3696A to initiate Letter 86-C to inform the taxpayer that his/her return has been transshipped to the Virgin Islands Bureau of Internal Revenue for processing and Send the return to: Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. Thomas, VI 00802 Caution: If Form 8689 is attached or there is an indication on the dotted portion of total payments line that the taxpayer is reporting taxes paid to the USVI, or the taxpayer is filing in compliance with Notice 2007-19 (zero return, taxpayer's name, address, TIN and signature), DO NOT SEND THESE RETURNS TO THE USVI. See processing instructions below. If there is no indication that a taxpayer is a bona fide resident of the USVI, continue processing the return. 3.22.3.9.6.1.2 (04-28-2022) Form 8689 - Allocation of Individual Income Tax to the United States Virgin Islands Form 8689 - Allocation of Individual Income Tax to the United States Virgin Islands is used to figure the amount of United States tax allocable to the USVI. Caution: If Form 8689 is attached, or there is an indication on the dotted portion of line 33 (TY19, line 19) of Form 1040 or Schedule 3, line 13 (TY19, line 14) that the taxpayer is either reporting taxes paid to the USVI or filing in compliance with Notice 2007-19 (zero return, taxpayer's name, address, TIN and signature), do not send these returns to the USVI. See IRM 3.22.3.9.6.1.3 below. Form 8689 must be attached to take the credit for United States tax allocated to the USVI when the amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. The taxpayer should add lines 41 and 46 of Form 8689 and include that amount in the total portion of line 33 (TY19, line 19) of Form 1040. See IRM 3.22.3.268.2.2, EC 366, Form 8689 - Allocation of Income Tax to the U.S. Virgin Islands. SSPND 215 and correspond for Form 8689 when the amount claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. 3.22.3.9.6.1.3 (01-01-2015) Form 1040 in Compliance With Notice 2007-19 If you can determine that the taxpayer is filing in compliance with Notice 2007-19, then process the return. Some indications could be: Notation on the return "Notice 2007-19" Zero tax return (no dollar entries) Affirmation statement indicating filed a USVI Form 1040 Statement of gross income of $75,000 or more Statement affirming the taxpayer's bona fide residency in the USVI along with a summary of facts on which the residency is based 3.22.3.9.6.1.3.1 (01-01-2015) Processing Form 1040 Filed With the IRS in Compliance With Notice 2007-19 These returns must be hand carried from function to function. Code & Edit is instructed to "X" all entries except: Caption information Computer Condition Code (CCC) and Return Processing Code (RPC) Received Date Caution: If the return includes both Notice 2007-19 and Form 8689, use only the instructions to process Form 1040 with Form 8689. If data is present other than the caption information, CCC, RPC or received date, delete entries and/ or section(s). Note: Always use the received date stamped by compliance. 3.22.3.9.6.1.4 (01-01-2015) Form 1040 in Compliance with Notice 2007-31 The USVI Bureau Internal Revenue (BIR) will send to the IRS copies of the taxpayers' returns for 2006 and later when the taxpayer files a return with the USVI BIR and they meet each of the following conditions: Bona fide resident of USVI Gross income of $75,000 or more The return will be only page 1 of Form 1040 and include a watermark "Filed due to VI Notice 2007-31" in the upper left corner of page 1 Form 1040. 3.22.3.9.6.1.4.1 (01-01-2013) Processing Form 1040 in Compliance with Notice 2007-31 These returns must be hand carried from function to function. Code & Edit is instructed to "X" all entries except: Caption information RPC "L" RPC "V" Received Date If data is present other than the caption information, RPC "L" and RPC "V" or received date, delete entries and/or section. Note: DO NOT CORRESPOND or ISSUE Taxpayer Notice Codes (TPNC) 3.22.3.9.7 (11-27-2020) Processing U.S. Virgin Islands (VI) Cover Over Program Form 1040 The Virgin Islands Bureau of Internal Revenue (BIR) sends Form 1040 tax return to the IRS that require special handling and editing, a process identified in Submission Processing as the VI Cover Over Program. These returns are batched together and hand carried to each function, including ERS. Code & Edit is instructed to X all entries except: Caption information Special Processing Codes (SPCs), Computer Condition Codes (CCCs) and Return Processing Codes (RPCs) Received Date Follow these instructions when processing these returns in ERS.: If Then A U.S. address is entered in Section 01, Delete the address and enter 00801 in Field 01ZIP. Field 01SPC is blank, GTSEC 01 and enter "B" in Field 01SPC. Field 01CCC is blank, GTSEC 01 and enter "3" and "O" in Field 01CCC. Note: CCC "3" must be entered first. The received date is missing in Field 01RCD, GTSEC 01 and enter the correct received date in Field 01RCD. Note: Always use the USVI Received Date if present. If not present, use the signature date. Field 01RPC is blank, GTSEC 01 and enter B and L. in Field 01RPC. Also enter RPC K for Statute years. Note: USVI Cover Over returns don’t require Statute review, but RPC K is required for the returns to close in ERS. Entries are present in fields other than Section 01, Delete the entries. Don’t correspond or assign TPNCs on a VI Cover Over return. If an error code generates and a TPNC is required to resolve the error, assign TPNC 100 with the following literal instead of the TPNC specified in the error code instructions: "VI Cover Over return - Void Notice" . 3.22.3.10 (01-01-2024) Form 1040-SS and Form 1040-SS (sp) In PY24 Form 1040(PR) is obsolete and is replaced with Form 1040-SS (sp)Form 1040-SS /Form 1040-SS (sp)can be filed by a taxpayer residing in AS, CNMI, GU, PR and the USVI. Both Form 1040SS(SP) and Form 1040-SS are filed to: Report net earnings from self-employment and pay self-employment taxes. Pay any household employment taxes. Claim excess Social Security taxes withheld. Pay any employee Social Security and Medicare tax on unreported tips or uncollected employee Social Security and Medicare tax on tips or group term insurance. Claim additional Child Tax Credit for TY 20 and prior. (Only if qualified bona fide resident of Puerto Rico with 3 or more qualifying children). Claim refundable Child Tax Credit for TY 21 (Only if qualified bona fide resident of Puerto Rico). Claim additional Child Tax Credit for TY 22 and later (Only if qualified bona fide resident of Puerto Rico with 1 or more qualifying children). Claim the health coverage tax credit for TY 21 and prior. (Only if qualified bona fide resident of Puerto Rico) Form 1040-SS/Form 1040-SS (sp)is a 2-page return. All Form 1040-SS and Form 1040-SS (sp)are processed under FLC 21. See chart below to determine Document Code and return due Date: Form Filed Document Code Return Due Date Form 1040(PR)/1040SS (sp) 27 15th day of the fourth month Form 1040-SS 26 15th day of the fourth month Note: If the Return Due Date falls on a weekend or legal holiday, the return will be due the first business day following the weekend or legal holiday. The return will be considered timely filed if received on the next business day following the weekend or legal holiday. See Exhibit 3.22.3-17 for current year return due dates. 3.22.3.11 (01-01-2024) Form 1040-NR Form 1040-NR are filed by: Nonresident aliens who have United States source income or income effectively connected with a U.S. trade or business. Nonresident aliens who are temporarily present in the United States Dual-status taxpayers in the year of entry into or departure from the United States Dual-status taxpayers in the year that status changed due to expatriation. All Form 1040-NR are processed under FLC 20. Income reported on Form 1040-NR is classified as either effectively connected with a United States trade or business or not effectively connected with a United States trade or business. See Chart below to determine Document Code and Return Due Date: Form Filed Criteria Document Code Return Due Date Form 1040-NR Wages on line 1a (TY19, line 8) 73 15th day of fourth month Form 1040-NR No wages 72 15th day of the sixth month Note: If the Return Due Date falls on a weekend or legal holiday, the return will be due the first business day following the weekend or legal holiday. See Exhibit 3.22.3-17 for current year return due dates. Form 1040-NR must be transshipped to Kansas City Submission Processing Center (KCSPC)when any of the following conditions exist, SSPND 640: TIN is an Employee Identification Number (EIN) formatted xx-xxxxxxx or The name line has other than an individual's name (such as an estate or trust) or Line 13b (TY19/TY18 Line 39) is $300 or $100 (Trust) or $600 (Estate) or Taxpayer quotes IRC 642(b)(2)(c) and enters $47300 on line 13b ( TY22 - $4,400; TY20 and TY21 - $4,300; TY19 and TY18, $4,150 on line 39 ). In some instances, the taxpayer may file a short period Form 1040-NR before the end of the tax year due to the date of final departure from the United States. These early filed returns must be processed as 202212 (calendar-year returns). SSPND 480 and attach Form 4227 to the return, notating "Hold for 2022 processing." Exception: If the return is received prior to August 1, SSPND 640 and use Form 9143 to advise the taxpayer that they must refile in January. When a refund Form 1040-NR has an address written on line 35e of Form 1040-NR that differs from the entity address, see the EC 260 instructions for manual refunds at IRM 3.22.3.197.6. Rev. Rul. 68-500 allows Form 1040-NR to include a facsimile signature signed for the taxpayer by an agent. Accept the facsimile signature and process the returns that are signed for the taxpayer by an agent. (Attorney-in-Fact) See IRM 3.22.3.14.1, Refund Schemes, for instructions on when to code Form 1040-NR refund returns with Computer Condition Code "O" (CCC O). 3.22.3.11.1 (01-01-2024) Resident Alien - General Information A taxpayer is a Resident Alien of the United States for tax purposes and must file Form 1040 if they meet either the "green card test" or the "substantial presence test" for the calendar year. If they do not meet either of these tests, they file Form 1040-NR , if applicable. Note: If certain conditions are met, a nonresident alien may make a first year choice to be treated as a resident alien for part of the tax year. Green Card Test is met when a taxpayer is a lawful permanent resident of the United States at any time during the calendar year and has been issued an alien registration card (Form I-551), also known as a "green card" . All references made throughout this IRM to "green card" include Form I-551 for all years after 1996. Form I-151 is only acceptable as proof of permanent residency for TY96 and prior. See 2512-001, International Tax Returns Job Aid. To meet the Substantial Presence Test the taxpayer must be physically present in the United States on at least 31 days during the tax year of the return, and 183 days during the 3 year period that includes the tax year of the return and the 2 years prior to the tax year of the return. Example: Taxpayer is filing a 2022 tax return and was present in the United States 150 days in 2022, 150 days in 2021 and 150 days in 2020 the total days would be 225 days. See chart below: Use the following table to determine Substantial Presence. The taxpayer will count each day they were present in the United States during the tax year of the return (If present in the United States 150 days in 2023, then 2023 = 150 days.), AND Add 1/1 of the days they were present in the United States during the first year prior to the tax year of the return (If present in the United States 150 days in 2023, then 150/150 = 50 days for 2022. The days in the United States are 200 days. 150 days (for 20232) + 50 days (for 2022) = 200 days.), AND Add 1/1 of the days they were present in the United States during the second year prior to the tax year of the return (If present in the United States 150 days in 2021 then 150/150 = 25 days for 2021. The total days in the United States for the three year period is 225 days. 150 days (for 2023) + 50 days (for 2022) + 25 days (for 2021) = 225 days.) Exception: Certain exception apply to exempt an individual from being considered a U.S. resident under the substantial presence test. See Exhibit 3.22.3-7 for types of Visas. 3.22.3.11.2 (01-01-2023) Nonresident Alien - General Information Nonresident Aliens report only U.S. source income and income that is effectively connected with a U.S. trade or business on Form 1040-NR. U.S. source income is reported on Form 1042-S, Form W-2, Form 1099 series, Form 8805, Form 8288-A, Form SSA/RRB 1042-S, or statement of income and received from: U.S. payer or Foreign payers for services performed in the U.S. Financial institutions because the account holder failed to provide the required information for the financial institution to report under FATCA United States tax law exempts nonresident aliens from United States taxation on interest from deposits in United States bank accounts if such interest is not effectively connected with a U.S. trade or business. Effectively Connected Income, after allowable deductions, is reported on page 1 of the Form 1040-NR and is taxed at graduated rates. These are the same rates that apply to U.S. citizens and residents. Non-Effectively Connected Income is reported on Schedule NEC of Form 1040-NR and is taxed at a flat 30 percent rate or at a lower treaty rate if a tax treaty exists between the United States and the taxpayer's foreign country of residence, and no deductions are allowed against such income. When a taxpayer performed services as an employee both inside and outside the United States, the taxpayer must allocate their compensation between the United States and non-U.S. sources. Note: Only the U.S. source income is included on line 1a of Form 1040-NR as effectively connected wages. 3.22.3.11.3 (11-08-2021) Form 1040-NR Country of Residence Determine the country of permanent residence of a nonresident alien by using the taxpayer’s information on the return, in the following order: Schedule OI, Line B Form 1040-NR Schedule OI, Line A Form 1040-NR Address from the Entity section of Form 1040-NR Review of any attachments 3.22.3.11.4 (01-01-2024) Scholarship or Fellowship Grants Income When Scholarship or Fellowship Grants income is paid to a resident of a country with a tax treaty that exempts this type of income from taxation, the exempt income may be reported on line 1k (TY21 and prior 1c, Form 1040-NR)Form 1040-NR. See the instructions for verifying Scholarship or Fellowship Grants income treaty claims in EC 218 at IRM 3.22.3.173.2.2.1 (Form 1040-NR). Caution: When it can be determined that the taxpayer's income is from an occupation other than student (Form W-2 issued from other than a qualified education institution, occupation area of the return indicates intern, technical supporter, doctor, etc.), do not allow the treaty claim for a Scholarship or Fellowship Grant. When Scholarship or Fellowship Grant income is paid to a resident of a country without a tax treaty with the United States.: The income may not be exempted under a tax treaty. The income must be reported on line 8r, Schedule 1 (TY21 and prior line 1b, Form 1040-NR). For TY 21 and prior If the taxpayer is a "Degree Candidate" , amounts received from a qualified educational institute for education related expenses (books, fees, tuition) may be deducted on line 10c, Form 1040-NR. . For TY 22 and later Degree Candidates may deduct amounts received from a qualified educational institute for education related expenses (books, fees, tuition) and report the net on line 8r, Schedule 1. 3.22.3.11.5 (01-01-2024) Article XXV - United States and Canada Income Tax Treaty When a Form 1040-NR is received from a married Canadian resident (who is not a U.S. citizen) who has U.S. source wages that are subject to tax in the United States, they may be able to compute their U.S. tax liability in accordance with the special provision contained in Article XXV(3) of the U.S.- Canada Tax Treaty. Review Form 1040-NR from Canadian resident taxpayers for the following indications that they are computing their U.S. tax on wages using Article XXV(3): Two names are present in the entity section of the return; or Hypothetical married filing joint tax computation using worldwide income for both taxpayers (Form 1040 or statement); or A statement is attached indicating that a special computation permitted by the U.S.- Canada Tax Treaty has been used; or A notation of "Article XXV" is found on the return or its attachments. Article XXV(3) limits the Canadian resident taxpayer’s U.S. liability with respect to his or her U.S. source employment income to an amount computed using the following formula: (Form 1040-NR Taxable Income/Form 1040 Taxable Income) × Form 1040 Tentative Tax. The tentative tax reported on Form 1040 or statement is the total U.S. tax payable by the taxpayer and his or her spouse as if both were U.S. citizens and all of their income arose in the United States. An income deficit (or loss) of the spouse shall not be taken into account. EC 265 generates on Form 1040-NR when the taxpayer uses this special tax calculation. See EC 265 at IRM 3.22.3.202.2. Article XXV(3) does not provide a basis for Canadian residents who are not U.S. citizens to claim on their actual Form 1040-NR a standard deduction or any credits for which they would not be eligible under the Internal Revenue Code. 3.22.3.11.6 (08-03-2015) Expatriation and Form 8854 Taxpayers that are subject to expatriation tax must attach Form 8854, Initial and Annual Expatriation Statement, to their regular filing of Form 1040 or Form 1040-NR, whichever is applicable, for the year of expatriation and in certain circumstances for subsequent years. Taxpayers may elect to defer all or a portion of the expatriation tax and may attach two hypothetical Form 1040 returns to Form 8854 to support their calculations. Taxpayers making this election must file Form 8854 annually up to and including the year in which the full amounts of deferred tax and interest are paid. If Form 8854 is attached to a tax return, GTSEC 01 and enter Audit Code "K" in Field 01ACD. Continue to process the tax return with normal processing procedures. Note: If a taxpayer indicates "Expatriation Return" on the tax return do not enter Audit Code K unless Form 8854 is attached. Note: Process a Form 1040-NR as dual-status if the taxpayer identifies the return as a "Dual-Status Return" and attached a Form 8854. 3.22.3.11.7 (01-01-2020) Community Property - General Information Taxpayers that are subject to the community property laws of a foreign country, a United States state, or a United States territory, generally must follow those laws to determine the income of each taxpayer for United States tax purposes. However, they must disregard certain community property laws if: Both taxpayers are nonresident aliens, or One taxpayer is a nonresident alien and the other taxpayer is a United States citizen or resident and they do not choose to be treated as United States residents (as explained in Chapter 1 under Nonresident Spouse Treated as a Resident). In these cases, both taxpayers must report community income as explained below. Earned Income of each taxpayer, other than trade or business income and a partner's distributive share of partnership income, is treated as the income of the taxpayer whose services produced the income. That taxpayer must report all on a separate tax return. Trade or business income, other than a partners’ distributive share of partnership income, is treated as the income of the person who exercises substantially all of the management and control over the trade or business. That taxpayer must report all on a separate return. Partnership income (or loss). A partner's distributive share of partnership income is treated as the income (or loss) of the partner. The partner must report all of it on a separate tax return. Income derived from the separate property of the taxpayer (and which is not earned income, trade or business income, or partnership distributive share income) is treated as the income of that taxpayer. That taxpayer must report all on a separate tax return. Use the appropriate community property law to determine what is separate property. All other community income is treated as provided by the applicable community property laws. Note: If a determination cannot be made, SSPND 370 for Examination review. For additional information see EC 260 at IRM 3.22.3.198.5 3.22.3.11.8 (11-08-2021) Tax Treaties - General Information The United States has income tax treaties (conventions) with many foreign countries. Under these treaties, residents of foreign countries are taxed at a reduced rate, or are exempt from United States income taxes on certain items of income they receive from sources within the United States. These reduced rates and exemptions vary among countries and with specific items of income. In certain limited circumstances, resident aliens may be entitled to treaty benefits. Tax treaties may, under certain circumstances, permit foreign individuals who are residents of the treaty country to visit the United States, practice their profession and earn income (sometimes in limited amounts) for a limited period of time without having to pay United States tax. Tax treaty tables are found in this IRM at Exhibit 3.22.3-1, Tax Treaty Table 2, Compensation for Personal Services Performed in United States Exempt from U.S. Income Tax Under Income Tax Treaties, and Exhibit 3.22.3-3, Tax Treaty Table 1, Tax Rates on Income Other than Personal Service Income Under Chapter 3, Internal Revenue Code, and Income Tax Treaties. Refer to IRM 3.22.3.17.3, Field 03TEX - Total Income Exempt by Treaty, for instructions for validating treaty exemption claims on Form 1040-NR. Refer to IRM 3.22.3.17.26, Field 03TNC Tax on Not Effectively Connected Income (NEC), for instructions for validating treaty tax rates. 3.22.3.11.8.1 (11-03-2022) Types of Visas - General Information A visa is assigned to an individual by the United States Citizenship and Immigration Services. See Exhibit 3.22.3-7. The method of taxation of a visa holder depends primarily upon whether the individual is classed as a resident or a nonresident. If the visa-holder is determined to be a nonresident alien, they are generally taxed on all United States Source income and on all income that is effectively connected with the conduct of a trade or business in the United States, unless specifically excluded under a U.S. tax treaty provision. Resident aliens are generally taxed the same as citizens. The following are types and definitions of visas most frequently encountered in tax return processing: VISA Definition of VISA A Diplomat or foreign government official F-1 International Student H-1B Temporary Professional Worker H-1C Temporary Registered Nurse H-2A Temporary Agriculture Worker H-2B Temporary worker whose skills are needed in the U.S. H-3 Trainee or participant in a special education exchange program I Representative of foreign information media, and their dependents J-1 Student Student in the U.S. under Exchange Visitor Program J-1 Scholar Researcher/Professor under Exchange Visitor Program J-1 Au Pair Individuals in the U.S. under the auspices of the U.S. Information Agency and the Designated Program Sponsor M-1 Student at vocational schools Q-1, Q2 Participant in an international cultural exchange program TC Professional business worker admitted under United States - Canada Free Trade Act (CUSTA) TD NAFTA allows temporary entry to certain dependents of TN visa holders TN Professional business worker admitted under North American Free Trade Agreement (NAFTA) Note: This is not an all-inclusive listing. There are other VISA types used to enter the United States. 3.22.3.11.8.2 (02-27-2017) Survivor Benefit Annuities (SBAs) and Survivor Benefit Plans (SBPs) A member of the United States military reaching retirement age may elect to receive, during his/her lifetime, a reduced United States military pension in order that his/her surviving spouse may continue to draw a United States military pension after his/her death. After the death of the United States military retiree, the pension which is paid to the retiree's surviving spouse is called a Survivor Benefit Annuity (SBA) or a Survivor Benefit Plan (SBP). Note: The SBA or SBP income will be reported on a Form 1042-S with Income Code 15 from Office of Personnel Management. United States tax law holds that these benefits represent United States - sourced taxable income unless United States tax law is overridden by a tax treaty between the United States and the country in which the nonresident alien recipient is a resident. SBAs/SBPs paid to nonresident aliens who reside in the following countries are not subject to U.S. tax under current treaties, provided they meet any requirements listed below or, if the country below is marked with an asterisk, they are a national of the country in which they reside: List of Countries List of Countries Australia Lithuania * Austria Luxembourg * Bangladesh * Malta* Barbados Mexico* Belgium * Morocco Bulgaria * Netherlands * China * New Zealand (must also be a citizen of New Zealand) Cyprus Norway Czech Republic (decedent must have been resident of Czech Republic) Pakistan Denmark * Portugal * Egypt Romania Estonia * Russia (must also be a citizen of Russia) Finland * Slovak Republic (decedent must have been a resident of Slovak Republic) Germany * Slovenia * Hungary * South Africa * Iceland* South Korea India * Spain * Ireland * Sri Lanka Israel Sweden (must also be a citizen of Sweden) Italy * Switzerland * Jamaica* (decedent must have been a national of Jamaica at the time the services were rendered) Thailand * Japan * Tunisia Kazakhstan (must also be a citizen of Kazakhstan) Turkey * Latvia * United Kingdom *(England, Northern Ireland, Scotland, and Wales) * Venezuela * SBAs/SBPs paid to residents and citizens of the following countries are taxable in the United States at the following tax rates under current tax treaties (or in the absence of a treaty): Country Name Percentage Canada 15 percent All other countries 30 percent 3.22.3.12 (01-01-2024) Correspondence Procedures Suspend international returns for first correspondence with Action Code 215. All missing required information must be requested when corresponding. Follow correspondence instructions in IRM 3.12.2, Individual Master File Error Resolution General Instructions, and IRM 3.12.3, Error Resolution, Individual Income Tax Returns, when specific instructions are not provided in IRM 3.22.3. Exception: When IRM 3.12.3 has instructions to suspend with Action Code 211, Action Code 213, Action Code 224, or Action Code 225, always use Action Code 215. DO NOT use Action Code 224 for ACA Correspondence or Action Code 213 for Health Coverage Tax Credit, or Action Code 225 for EC 157 on international returns. For Second Correspondence use Action Code 216. See IRM 3.22.3.287, Second Correspondence. The ERS Tax Examiner who identifies the need for correspondence on Form 1040-NR will prepare a Form 13900, Correspondence Action Sheet International Returns to select paragraphs in Letter 4087C. Fill-in paragraphs for Letter 4087C are in Exhibit 3.22.3-12. Form 13900 should be used in lieu of Form 6001 for Form 1040 when selected paragraphs are available. Prepare Form 13975, Form 1040-SS (or Form 1040-SS (sp)) Correspondence Action Sheet - International Returns, to select paragraphs in Letter 2894C for Form 1040-SS or Letter 2894C/SP for Form 1040-SS (sp). Fill-in paragraphs for Letters 2894C and 2894C/SP are in Exhibit 3.22.3-13. Reminder: Examiners are reminded to select the box at the top of Form 13975 to indicate form type. 3.22.3.12.1 (01-02-2015) Missing Signature An original signature is required, below the jurat (perjury statement), on most returns. Without the taxpayer's signature, the return is not an official document and may not be processed. ERS examiners are required to inspect returns for missing original signatures. If a return is unsigned, SSPND 640 to send the return to Rejects. Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, Signature Requirements, for specific procedures regarding missing signatures. Exception: If a signature is missing on a return filed using the Streamlined Filing Compliance Procedures, DO NOT send the return back to the taxpayer. Use Letter 4087C to ask for the taxpayer's signature. Exception: Rev. Rul. 68-500 allows bulk filings of Form 1040-NR to include a facsimile (rubber stamp) signature signed for the taxpayer by an agent. Accept the facsimile signature and process the returns that are signed for the taxpayer by an agent (Attorney-in-Fact). 3.22.3.13 (11-08-2021) Late Filed Returns/Reasonable Cause Enter "N" in Field 01CCC on Form 1040 when the tax return or attachments indicate that the taxpayer meets any of the conditions in (a) through (i) below. Taxpayers that meet these conditions qualify for a special extension. Form 1040-NR filers do not qualify. Don’t edit CCC N on Form 1040-NR. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The taxpayer is in the military or naval service on duty outside the United States and Puerto Rico APO/FPO address Taxpayer is qualified for an automatic two-month extension Form 2555 dates indicate still there or continuing, and/or 1040 address is foreign Form 2555 has an ending date later than the calendar year Taxpayer is abroad Taxpayer is overseas Return indicates Treasury Regulation 1.6081-5(a) 3.22.3.14 (01-27-2012) Special Procedures This subsection addresses special situations which may not be covered in any other section of this IRM. 3.22.3.14.1 (01-01-2017) Refund Schemes Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for guidance on identifying possible refund schemes and frivolous and fraudulent returns. 3.22.3.14.2 (01-01-2023) Amount Reported in Foreign Currency on U.S. Individual Tax Return All amounts on U.S. individual tax returns are to be reported in U.S. currency only. If amounts on the tax return are reported in foreign currency, and Code & Edit has not converted to U.S. dollars, then convert the amounts using the official rate in effect at the end of the tax year of the return as reported on the exchange rate chart published by the U.S. Treasury for the tax period of the filer’s tax return (see https://fiscaldata.treasury.gov/datasets/treasury-reporting-rates-exchange/treasury-reporting-rates-of-exchange). If a Taxpayer Notice Code (TPNC) is required to resolve an error on a return after foreign currency is converted to US dollars, also assign a TPNC 358. 3.22.3.14.3 (01-01-2023) Conversion of Form 1040-NR-EZ to Form 1040-NR In all instances, it is necessary to convert a Form 1040-NR-EZ to a Form 1040-NR to process the return. Note: Instructions for conversion of Form 1040A and Form 1040EZ to Form 1040 are found in IRM 3.12.2, Individual Master File Error Resolution General Instructions, Conversion of Returns If a TPNC is required to resolve an error on Form 1040-NR-EZ after conversion to Form 1040-NR, assign TPNC 311 as the first notice code to inform the taxpayer that the return has been converted. 3.22.3.14.4 (11-08-2021) Multiple Filers on the Same Return Form 1040-NR Each taxpayer must complete a separate Form 1040-NR and include the income and withholding for self only, even if the taxpayer is married. If there are two names on the name line of the return see Field 01NL1 First Name Line at IRM 3.22.3.15.4 for instructions. If the return includes wages or other income or withholding that doesn’t belong to the taxpayer filing the return, then adjust the return to include only the taxpayer’s income and withholding. Assign TPNC 334 3.22.3.15 (01-01-2015) Section 01 Data-Entity and Miscellaneous Information Section 01 contains entity data, fields for codes, received date, and miscellaneous information. 3.22.3.15.1 (01-01-2024) Error Record Format-Section 01 Section 01 contains the following fields Note: The "Location on the Form" applies to Form 1040-NR, Form 1040-SS (sp), and Form 1040-SS unless specified otherwise: Form 1040-NR Form 1040-SS (sp)/Form 1040-SS Field Title 01PNC 01PNC Primary Name Control 01PS 01PS Primary SSN 01SNC Secondary Name Control 01SS Secondary SSN 01NL1 01NL1 Name Line 1 01NL2 01NL2 Name Line 2 01ADD 01ADD Street Address 01C/S 01C/S City/State 01ZIP 01ZIP ZIP Code 01TXP 01TXP Tax Period 01COU 01COU Country Code 01SPC 01SPC Special Processing Code 01FSC 01FSC Filing Status Code 01CCC 01CCC Computer Condition Code 01EXC 01EXC Exemption Code Field 01DSI Dependency Status Field 01DN1 01DN1 Dependent Name Control-1 01DS1 01DS1 Dependent SSN-1 01CT1 01CT1 Child Tax and Other Dependent Credit Indicator-1 01DN2 01DN2 Dependent Name Control-2 01DS2 01DS2 Dependent SSN-2 01CT2 01CT2 Child Tax and Other Dependent Credit Indicator-2 01DN3 01DN3 Dependent Name Control-3 01DS3 01DS3 Dependent SSN-3 01CT3 01CT3 Child Tax and Other Dependent Credit Indicator-3 01DN4 01DN4 Dependent Name Control-4 01DS4 01DS4 Dependent SSN-4 01CT4 01CT4 Child Tax and Other Dependent Credit Indicator-4 01RCD 01RCD Received Date 01FPC 01FPC Forms Processing Codes 01RPC 01RPC Returns Processing Code 01ACD 01ACD Audit Code 01DAC 01DAC Digital Assets Code 3.22.3.15.2 (01-01-2018) Correction Procedures Section 01 The following describes correction procedures for Section 01 that are unique to processing International returns. Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for general Section 01 correction procedures. Correct coding and transcription errors and misplaced entries on displayed fields. 3.22.3.15.3 (06-16-2016) Field 01PS - Primary TIN Return Filed Using Streamlined Filing Compliance Procedures with Missing Primary TIN (P-TIN) - Don’t correspond for a missing TIN on a Streamlined return. If the TIN is missing and not found after searching the return and after research, then suspend with Action Code 320 to Entity for assignment of an IRSN. When the return comes back from Entity with an IRSN follow the instructions in EC 005 at IRM 3.22.3.82.2 before entering RPC O. 3.22.3.15.4 (04-28-2022) Field 01NL1 First Name Line - 35 Positions Form 1040-NR can have only one name in the caption on page 1. If two names are present, determine if two incomes are present or if withholding documentation (Form W-2, Form 1042-S, etc.) is included for both names and follow these instructions. If Then All income and withholding belong to one taxpayer, Delete the name of the taxpayer who has no income or withholding from Field 01NL1. Both taxpayers report income or withholding, SSPND 215 and select paragraph S on Form 13900 for separate Form 1040-NR The box on page 1, Form 1040-NR is checked Estate or Trust and, the first name line has the name of other than an individual (such as an estate, etc.) and there is an EIN instead of a SSN SSPND 640 to transship return to Kansas City Submission Processing Center (KCSPC). Note: If the Form 1040-NR has only one name on the return, but income or withholding from multiple persons, then see Special Procedures at IRM 3.22.3.14.4. 3.22.3.15.5 (01-01-2020) Field 01NL2 Second Name Line - 35 Positions The foreign country name, province, and foreign postal code are found on page 1 of the tax return. Exception: For TY18, this information is found on Schedule 6, Form 1040. Foreign Address - Field 01NL2 may be used when the entity is a foreign address. Field 01NL2 is limited to 35 characters. Exception: See IRM 3.22.3.116 EC 051. Note: Field 01NL2 can include other mailing address information if it allows the complete address to be entered. Some mailing address information (states, provinces and territories) must be abbreviated. See Exhibit 3.22.3-6 and IMF Foreign Address Job Aid 2513-703. If a domestic and foreign address are both present in the entity area of the return then enter the domestic address. For TY18 only, if the address on page 1 of Form 1040 is for a foreign country, and no domestic address is present, enter the foreign address in Section 01. Don’t correspond for Schedule 6. For Puerto Rico only, the following are different types of address formats: Four-line address containing Name, Urbanization, House Number and Street Name, City, State and Zip Code. Three-line address containing Name, House Number and Street Name, City, State and Zip Code. Exception: Some areas in Puerto Rico do not have street names or repetitive house numbers. The urbanization name substitutes as the street name and becomes the primary identifier. Example: Name, House Number and Urbanization Name, City, State and Zip Code. Public Housing Projects (residenciales) without street names or repetitive apartment numbers. In these cases, the apartment number is the primary number and the public housing project becomes the street name. Example: Name, Apartment Number and Residential Name, City, State and Zip Code. Apartment Buildings and Condominiums with a physical (street) address containing Name, Building Name, Street Number Apartment Number, City, State and Zip Code. Buildings without a physical address. Certain Condominiums are located on an unnamed street and may not have an assigned number. The name of the Condominium substitutes as the street name and the number 1 is used when no building number exists. Numbered streets must always contain a street prefix. House numbers - always place the house number before the street prefix. When the house number is an alpha numeric, do not use a hyphen to separate the letter from the number. See table below. Incorrect Form Correct Form Calle 12 C-19 C19 Calle 12 A-17 Calle Ampapola A17 Calle Ampapola B-40 Calle 1 B40 Calle1 Post Office Box - always use PO Box to identify Post Office Boxes. Do not use the Spanish words. Do not substitute the prefix Calle with the suffix street. Such substitutes render the address Undeliverable. Urbanization -- denotes an area, sector or residential development within a geographic area. Commonly used in Puerto Rico urban areas, it is an important part of the addressing format, as it describes the location of a specific street. In Puerto Rico, identical street names and address number ranges can be found within the same Zip Code. In these cases, the urbanization name is the only element that correctly identifies the location of a particular address. Generally, the abbreviation URB is placed before the urbanization name. Below is a table of examples of correct address formatting. The first line in the correct format column represents the entry for Field 01NL2. The second line represents the entry that goes into Field 01ADD: Tax Return Address Correct Format Estancias Detortuger, 521 Calle Tulpia Estancias Detortuger 521 Calle Tulpia Bo Rocha Comunidad LaSalle HC 02 Box 12811 Bo Rocha Comunidad LaSalle HC 02 Box 12811 Puerto Nuevo 512 Calle Aragon Puerto Nuevo 512 Calle Aragon Cond. Hato Rey Plaza Jesus T Pinero #200 Apt 6-M Cond. Hato Rey Plaza Jesus T Pinero #200 Apt 6-M URB Cuidad Jardin de Bairoa 88 Calle Franca URB Cuidad Jardin de Bairoa 88 Calle Franca When Field 01NL2 is required (deceased taxpayer, Power of Attorney (POA), minor, etc.) and a foreign address is present, follow the instructions at EC 260 to issue a manual refund. See IRM 3.22.3.197.6. Caution: If any of the conditions exist in paragraph 2 of IRM 3.22.3.197.6do not issue a manual refund. 3.22.3.15.6 (01-01-2020) Field 01ADD Street Address 35 Positions A foreign address is any address outside of the 50 states of the United States and the District of Columbia. The foreign country name, province, and foreign postal code are found on page 1 of the tax return. Exception: For TY18, this information is found on Schedule 6, Form 1040. A U.S. territory address must be entered using the same format as a domestic address as described in IRM 3.12.2, Individual Master File Error Resolution General Instructions. See IRM 3.22.3.15.5 for additional instructions for addresses in Puerto Rico. If a domestic and foreign address are both present in the entity area of the return then enter the domestic address. For TY18 only, if the address on page 1 of Form 1040 is for a foreign country, and no domestic address is present, enter the foreign address in Section 01. Don’t correspond for Schedule 6. For an address in a foreign country Field 01ADD should contain the city, state, territory or province, and postal code, if present. Field 01NL2 may be used to allow for a more complete address (see Field 01NL2, IRM 3.22.3.15.5, for exceptions). When shortening the foreign address to fit the limitations of Field 01NL2 and Field 01ADD: Do not remove a postal code. If a postal code is present and the address can’t be shortened, delete the address information according to major (e.g., province) to minor (e.g., city, town) subdivisions of the address. Note: Some countries prefer that the postal code follow and others prefer it precede the city or town name. Follow the order as edited on the return. The following states, provinces and territories for the countries listed below must be abbreviated. See Exhibit 3.22.3-6 to enter the abbreviation: Australia Brazil Canada Cuba Italy Mexico Netherlands Note: Refer to the IMF Foreign Address Job Aid 2513-703 for additional abbreviations. 3.22.3.15.7 (01-01-2020) Field 01C/S City/State - 24 Characters The foreign country name, province, and foreign postal code are found on page 1 of the tax return. Exception: For TY18, this information is found on Schedule 6, Form 1040. A foreign country name entered in Field 01C/S must be in the required format. Twenty-four (24) characters may be entered in this field, which includes the slashes (/) and period. The required space in position 25 is not visible on the ERS screen. If a domestic and foreign address are both present in the entity area of the return then enter the domestic address. For TY18 only, if the address on page 1 of Form 1040 is for a foreign country, and no domestic address is present, enter the foreign address in Section 01. Don’t correspond for Schedule 6. For foreign addresses, this field should contain ONLY the country in the correct format: If Then Correction is needed on a foreign address, Enter a slash (/), the country's name, followed by a slash (/) and a period (.). (i.e., /CHINA/.). Note: The name of all countries must be spelled out, see Exhibit 3.22.3-4, unless it is listed in (3) below. A foreign mail routing code is entered after the country, Enter the routing code after the state or province in Field 01ADD. Reminder: Leave Field 01ZIP blank. Do not enter the mail routing code in Field 01ZIP. Note: Refer to Foreign Address Job Aid for additional information to enter a foreign address. The following are examples of country names that too are long and the abbreviation below must always be used. Note: This list is NOT all inclusive. Document 7475 shows the complete list of acceptable abbreviations. Country Abbreviation Ashmore and Cartier Islands /Ashmore and Cartier/. Bosnia and Herzegovina /Bosnia Herzegovina/. British Indian Ocean Territory /British Indian Oc Terr/. British Virgin Islands /British V I/. Central African Republic /Central African Rep/. French Southern Antarctic Lands /Fr Southern Antarctic/. Heard Island and McDonald Islands /Heard Is McDonald Is/. Macedonia, the Former Yugoslav Republic of /Macedonia/. Saint Pierre and Miquelon /St Pierre Miquelon/. Saint Vincent and the Grenadines /St Vincent Grenadines/. Serbia and Montenegro /Serbia Montenegro/. South Georgia and the South Sandwich Islands /S Georgia S Sandwich/. Turks and Caicos Islands /Turks and Caicos Is/. For United States territory addresses: The following are valid state abbreviations for U.S. territories: AS - American Samoa MP - Commonwealth of Northern Mariana Islands GU - Guam PR - Puerto Rico VI - United States Virgin Islands Note: Although Micronesia, the Marshall Islands, and Palau are not U.S. territories, they are listed in 3.22.3-5 because they use the same addressing methods as U.S. territories. 3.22.3.15.8 (01-01-2020) Field 01ZIP Zip Code- 5 Positions The foreign country name, province, and foreign postal code are found on page 1 of the tax return. Exception: For TY18, this information is found on Schedule 6, Form 1040. For FLC 20 with a foreign address: This field must be blank If a foreign mail routing code is entered after the country or in Field 01ZIP, GTSEC 01 and enter the mail routing after the state or province in Field 01ADD. Delete mail routing code from Field 01ZIP. All U.S. territory addresses must contain a valid zip code. See Exhibit 3.22.3-5 3.22.3.15.9 (01-01-2024) Field 01TXP Tax Period - 6 Positions Valid tax period endings are as follows: Form 1040-NR, Form 1040-SS (sp) and Form 1040-SS - Current year tax period is not less than 202112 or more than current year and month. Form 1040-NR, Form 1040-SS (sp) and Form 1040-SS - Prior year tax period is 196212 through 202111. Residents of Australia and New Zealand often use a June (06) fiscal tax period ending date that coincides with their country’s accounting period. Follow taxpayer intent and enter YYYY06 for the tax period when June 30th is indicated as the tax period ending date on the tax return for a resident of Australia or New Zealand. Correction Procedures -Verify the tax period on the return or attachments and correct any transcription errors. If the tax period is invalid, correct as follows: Exception: Any future tax period later than the current processing year and month, refer to ERS Lead Tax Examiner for manual process. For early-filed decedents, refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 260. The tax period is Form is Then 202312 (current) Form 1040-NR Blank Field 01TXP (computer will generate 202312) For fiscal or short year tax period Form 1040-NR Process as calendar year unless otherwise indicated For a future tax period later than the current processing year and month Form 1040-NR Refer to ERS Lead Tax Examiner 202312 (current) Form 1040-SS (sp) or Form 1040-SS Blank Field 01TXP (computer will generate 202312) For fiscal or short year tax period Form 1040-SS (sp) or Form 1040-SS Process as calendar year unless otherwise indicated For a future tax period later than the current processing year and month Form 1040-SS (sp) or Form 1040-SS Refer to Lead Tax Examiner 3.22.3.15.10 (11-08-2021) Field 01COU Country Code - 2 Positions The Country Code Field is a two-position field which is designed to identify treaty countries whose residents are entitled to refunds of U.S. withholding on U.S. sourced income. The Country Code will assist in identifying erroneous claims for refunds of Social Security (Form SSA-1042-S) withholding. See Exhibit 3.22.3-4 for a listing of Country Codes. Code & Edit edits the Country Code to the right of the Entity Section of Form 1040-NR. Determine the country of permanent residence using the information on the tax return in this order: Line B, Schedule OI Line A, Schedule OI Address from the Entity section of Form 1040-NR Review of any attachments If Then The country entered on line B is "US" , Enter "XX" in Field 01COU. The taxpayer indicates "Same" on line B and A, Determine the Country Code by using the address information in the Entity section. The country in which the taxpayer was a permanent resident can’t be determined and the taxpayer uses a United States address in the entity section of Form 1040-NR , Enter "XX" in Field 01COU. The country in which the taxpayer was a resident isn’t listed in Exhibit 3.22.3-4 Enter "XX" in Field 01COU. 3.22.3.15.11 (01-01-2024) Field 01SPC Special Processing Code A special processing code (SPC) is an alphabetic or numeric character entered by a Code & Edit examiner to alert the computer to a special condition or computation. The number of SPCs in a return may not exceed ten. These codes are used for campus processing and do not post to the Master File. This field was created as an overflow for return processing codes. The list of Special Processing Codes is in IRM 3.12.2, Individual Master File Error Resolution General Instructions, Exhibit 3.12.2-4, Special Processing Code. The valid SPC for Form 1040-NR are A, B, C, E, F, G, J, M, N, P, T, U, V, X, 2, 3, and 9. Note: SPC U is generated by Modernized E-File (MeF) on Form 1040-NR. See instructions in EC 215 at IRM 3.22.3.170.2 The valid SPC for Form 1040-SS (sp) and Form 1040-SS are B, J, M, T, V, 2, 3, and 9. 3.22.3.15.12 (01-01-2024) Field 01FSC Filing Status Code - 1 Position An entry in Field 01FSC is invalid if the Filing Status Code is other than: Form 1040-NR all tax years: 1, 3, 5 Form 1040-NR TY17 and prior year only: 1, 3, 5, 6 Form 1040-NR: If And Then Single box is checked TY20 and later Code & Edit will edit FSC "1" Married box is checked TY20 and later Code & Edit will edit FSC "3" Qualifying Surviving Spouse box is checked TY20 and later, Date of death is within 2 years prior to the tax period of the return and the taxpayer is a U.S. National, or resident of Canada, Mexico or South Korea, or student or business apprentice from India eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, Code & Edit will edit FSC "5" Qualifying Surviving Spouse box is checked TY20 and later, the taxpayer is not a U.S. National, or resident of Canada, Mexico or South Korea, or student or business apprentice from India eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, Code & Edit will edit FSC "1" Qualifying Surviving Spouse box is checked TY20 and later, Date of death is not within 2 years prior to the tax period of the return, (For TY23, spouse’s date of death is not 2021 or 2022) Code & Edit will edit FSC "1" Box 1 (TY17 and prior year only) is checked TY17 and prior year return, Note: Box 1 is reserved in TY19/TY18. Code & Edit will edit FSC "1" Box 2 is checked TY19 and prior Code & Edit will edit FSC "1" Box 3 or 4 (TY17 and prior year only) is checked TY17 and prior year return, and Spouse's exemption is not claimed, Note: Box 3 and 4 are reserved in TY19/TY18. Code & Edit will edit FSC "3" Box 3 or 4 (TY17 and prior year only) is checked TY17 and prior year return, and Spouse's exemption is claimed, Note: If both taxpayers have income, SSPND 215 and select paragraph S on Form 13900 for separate income tax returns. Code & Edit will edit FSC "6" Note: FSC 6 is valid only on TY17 and prior year returns. Box 5 is checked TY19 and prior Code & Edit will edit FSC "3" Box 6 is checked TY19 and prior, Date of death is within 2 years prior to the tax period of the return and the taxpayer is a U.S. National, or resident of Canada, Mexico or South Korea, or student or business apprentice from India eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, Code & Edit will edit FSC "5" . Box 6 is checked TY19 and prior, the taxpayer is not a U.S. National, or resident of Canada, Mexico or South Korea, or student or business apprentice from India eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, Code & Edit will edit FSC "1" . Box 6 is checked TY19 and prior, Date of death is not within 2 years prior to the tax period of the return, and maybe add (For TY17, spouse’s date of death is not 2015 or 2016), Code & Edit will edit FSC "1" . No box is checked Code & Edit will edit FSC "1" . Filing Status Code for Dual-Status - Filing Status (FS) can be 1, 3, or 5; and FS 6 in TY17 and prior year. Reminder: A dual-status taxpayer cannot claim Head of Household or Married Filing Jointly on dual-status Form 1040 or Form 1040-NR. Note: The taxpayer can elect to file a Married Filing Jointly (FSC 2) return and report worldwide income under IRC 6013(g) and (h). To qualify under IRC 6013(g) or (h), one taxpayer must be a resident alien or U.S. citizen. See instructions in EC 250 at IRM 3.22.3.193.2.3.1 to determine filing status corrections on dual-status returns. 3.22.3.15.13 (01-01-2024) Field 01CCC Computer Condition Code (CCC) - 10 Positions The Computer Condition Code (CCC) is transcribed in Field 01CCC from the following area on the return: Form 1040-NR - upper portion of the filing status Form 1040-SS (sp) and Form 1040-SS - upper portion of Part I, Self-Employment Tax Note: Some CCC are generated by the computer on the error record to indicate a special condition or computation and will post to the Master File An entry in Field 01CCC is invalid if the Computer Condition Code is other than the following: Form 1040-NR - 1, 2, 3, 4, 7, 8, B, C, E, F, G, H, J, L, M, N, O, P, R, U, V, W, X, Y, or Z. Form 1040-SS (sp) or Form 1040-SS - 1, 3, 4, 7, 9, A, B, E, F, G, H, L, M, N, O, P, Q, R, U, V, W, X, Y, or Z. Correction Procedures- Determine and enter the correct code, if needed. A CCC "3" must be in the first position. CCC "5" or "6" must always be preceded by CCC "G" . SSPND 610, for renumbering, when a Form 1040-X has CCC "5" or "6" preceded by CCC "G" and is not in blocking series 990-999 or vice versa. The list below describes Computer Condition Codes commonly used on international returns. For a complete list of Computer Condition Codes see IRM 3.12.2, Individual Master File Error Resolution General Instructions, Exhibit 3.12.2-2, Computer Condition Codes. Code Explanation 1 Edited by RICS RIVO to freeze overpayment of account at Master File 3 Freezes release of overpayment of account at Master File. C Form 1040-NR with Form 8833 (Treaty-Based Return Disclosure Under IRC 6114 or IRC7701(b)) E Delete filing requirements for taxpayers who are not deceased J NRA spouse H Lump Sum Election is present M Reasonable cause for failure to pay tax by due date. N Taxpayer qualifies for a 2-month extension from due date for filing return (Form 1040 only) P Reasonable cause for underpayment of estimated tax. R Reasonable cause for delinquent filing. U Indicates no reply to correspondence and prevents generation of credit interest. Y Causes return to generate EC 260 for ERS review (see IRM 3.22.3.197) 3.22.3.15.14 (01-01-2024) Field 01RCD Received Date - 8 Positions If an international Form 1040, Form 1040-NR, Form 1040-SS, or Form 1040-SS (sp) is transshipped to AUSPC from another IRS Campus, Territory Office, or IRS foreign post, take the following action: If Then Code & Edit has not circled out the original IRS received date, Circle out the original received date and leave the AUSPC received date. There is no Austin Submission Processing Center (AUSPC) received date, Enter the received date using the Julian Date from the DLN minus 10 days. Refer to IRM 3.12.2, Individual Master File Resolution General Instructions, Field 01RCD, Received Date, for additional procedures on determining received dates. If a received date is needed but not stamped or written on the return, and there’s no indication that the return was transshipped as described above, then determine the received dates by following the priorities in IRM 3.12.2.4.3.20 paragraph (9). ALWAYS review each return for the words "Sent Back for Signature" or similar statement and a date present in the lower left-hand corner of the return. These are returns that were originally received missing a signature and were mailed back to the taxpayer from Receipt and Control. If a date and the notation, "Sent Back for Signature" is present, follow the instructions below for determining the received date: If the return is Balance Due and a received date is present showing a date within 45 days of the "Returned for signature date stamp" , honor the date the return was sent back for signature. Delete any later received date(s) that may be present If the return is Balance Due and a received date is present showing a date MORE than 45 days after the "Returned for signature date stamp" , honor the latest received date. Delete any earlier received date(s) that may be present. If the return is a Refund, Credit Elect or Zero balance return, honor the latest received date. Delete any earlier received date(s) that may be present. Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 3.22.3.15.15 (01-01-2024) Field 01EXC Exemption Codes The exemption amount that can be claimed on an individual’s Form 1040-NR in TY 201812 and later is $0. Exemption coding (Field 01EXC and Field 94EXV) is retained for determining family size in certain calculations. Note: TY18 and later, an exemption that is allowed based on country of residence is also an allowable dependent. For TY18 and later Form 1040-NR, the exemption line 13b (TY19, line 39) is only to allow for exemptions when the form is filed by an Estate or Trust. These returns are processed at the Kansas City Submission Processing Center. Form 1040-NR - Dependents (TY18 and later) and Exemptions (TY17 and prior) are limited by country of residence. The country of residence is determined by using taxpayer information on Schedule OI of Form 1040-NR or on other attachments. Residents of South Korea can claim an exemption for self, spouse or children, however the children must live with the parents in the United States. Residents of Canada, Mexico and United States National may claim exemptions for self, spouse, and/or other dependents. Residents of India who are students or business apprentices may claim exemptions for self, spouse and/or dependents on the same basis as United States citizens. All others are allowed only one exemption for self only. Delete the name control and TIN if present for all others than the primary taxpayer. Form 1040 use exemption positioning as if the taxpayer lived in the United States. For example, if the taxpayer lists children who lived with them, enter that number of exemptions in position 3 regardless of the address on the return. Form 1040-SS (sp)/Form 1040-SS the computer will generate Field 01EXC based on filing status. Caution: Do not edit Field 01EXC on Form 1040-SS (sp)/Form 1040-SS. 3.22.3.15.16 (01-01-2024) Field 01FPC Form Processing Code (FPC) - 10 Positions Form Processing Codes (FPC) are edited to the right of line 7 on page 1 of Form 1040-NR, 1040-SS (sp), and Form 1040-SS. An entry in Filed 01FPC is invalid if the Form Processing Code is other than: Form 1040-NR (Doc Code 72/73 and FPC is other than D, G, H ,J, L, R, S W, X, 5, 8, or 9. Form 1040-SS (sp) or Form 1040-SS and FPC is other than G, Q, 8, or 9. Correction Procedures- Take the following actions to correct Field 01FPC: Check for coding and transcription errors and correct, if needed. Determine and enter the correct code. Blank the field when the FPC written on the return is illegible and/or you cannot determine the correct FPC from the explanations in (4) below. Form Processing Codes - The number of Form Processing Codes may not exceed ten. The codes and their meanings are listed below: Code Explanation A Form 8332 or Form 2120 attached D Form 4864 attached and Schedule A Line 15 significant G Form 8938 attached H Form 8995-A Schedule A, Schedule B, Schedule C or Schedule D attached to the tax return. J Form 8886 attached L Form 8824 attached P Form 2106 attached Q Form 8939 attached R Any of the following: Form 8990, Form 8992, Form 8994 attached S Schedule SE attached W Form 5471 OR 5471 Schedule G-1, OR another schedule supporting Form 5471 is attached to the return. X Form 8865 attached 5 Form 6251 attached 8 Form 14039 attached 9 Taxpayer attached a Spanish language version of the Identify Theft Affidavit (Form 14039SP) to any type of form within the 1040 family, and therefore a Spanish version of the CP01S notice will be issued. 3.22.3.15.17 (01-01-2024) Field 01RPC Return Processing Code (RPC) - 8 Positions Return Processing Codes (RPC) are edited as follows: Form 1040-NR - horizontally in the bottom left margin of page 1 Form 1040-SS (sp) or Form 1040-SS - near the right of line 5 An entry in Field 01RPC is invalid if the Return Processing Code is other than: Form 1040-NR (Doc. Code 72/73) and RPC is other than A, B, C, D, F, G, H, I, J, K, L, N, O, Q, R, S, T, U, V, , X, Y, Z, 1, 2, 3, 4, 6, or 7 Form 1040-SS (sp)/Form 1040-SS (Doc. Code 26/27) - RPC other than E, K, L, O, Q, R, V, Y, or 6. Correction Procedures- Take the following actions to correct Field 01RPC: Check for coding and transcription errors and correct, if needed. Determine and enter the correct code. Blank the field when the RPC written on the return is illegible and/or you cannot determine the correct RPC from the explanations in (4) below. Return Processing Codes - The number of Return Processing Codes may not exceed ten. The codes and their meanings are listed below: Code Explanation F Taxpayer has included IRC 965 claims or payments on the return. G Forces computer to bypass Error Code 118 Check. H Other Contributions equal to or greater than $500 are present on Schedule A, and Form 8283 or equivalent statement is attached. I Taxpayer enters "Died" in the SSN area for a dependent or EIC child and a supporting birth certificate (or death certificate with a date of birth) is present. J Total Tax exceeds 50 percent of Adjusted Gross Income. K Indicates the return has been cleared by Statute Control. Valid on prior year returns only. M Unemployment box is checked on Form 8962. (valid for TY 21 only) R Authenticated by Electronic Filing PIN (EFP). MeF ONLY - DO NOT ENTER OR DELETE. S Taxpayer is exempt from paying self-employment tax. U Form 8949 attached with code "Y" or "Z" in column (f) X Reserved 1 Edited on dual-status Tax Returns 6 1/2 SE Deduction bypass (1/2 SE Deduction is not valid for TY97 and prior). Also valid for TY08 and later 8 E-file Form 1040 Additional Child Tax Credit with Puerto Rico Address 3.22.3.15.18 (04-28-2022) ERS Action Code - 3 Positions ALWAYS SSPND with Action Code 215 for first correspondence with taxpayers in FLC 20 or 21. The ERS Action Code indicates that specific information is missing, or the return is being suspended, or removed from processing. Error Resolution System (ERS) Action Codes will have sufficient detail to indicate if correspondence, in-house research, or other action(s) are required. For a complete listing of ERS Action Codes refer to the exhibit in IRM 3.12.2, Individual Master File Error Resolution General Instructions. Code & Edit Tax Examiners assign Action Codes to numbered returns that are unprocessable, require research, correspondence, etc. The code is entered on the lower center margin of the return. Correspondence Action Sheets (Form 3696-A, Form 6001, Form 13900, or Form 13975) used for initiating correspondence are attached by Code & Edit. For routing within the service center (In-House Research), codes and literals for each Action Code will generally be sufficient with no further explanation. The Action Code assigned by Code & Edit is transcribed and kept as part of the Form 1040/Form 1040-NR record. It will always display as a Priority 1 error. The presence of a valid Action Code except for Action Code 001, places the record in the suspense inventory, either Workable or Unworkable. If the Action Code assigned by Code & Edit is invalid or incomplete, the "000" is used as a clear code to delete invalid or erroneous Action Codes when there is no reason to suspend the record. Only one Action Code can be assigned at one time to a record. Use Command Code SSPND, RJECT or NWDLN to enter an Action Code on the record, correct an invalid code, resuspend, or delete a record from ERS. Entering a valid Action Code with SSPND Command Code clears the record from the screen and places it in either Workable or Unworkable Suspense. An ERS Tax Examiner entering a valid Action Code with the RJECT Command Code deletes the record from ERS. Generally, the Service Center Control File (SCCF) is automatically updated for the deleted records. Only Action Codes 620, 630, 640, 650, 660, and 670 are valid with Command Code RJECT. Entering an Action Code with the NWDLN Command Code deletes the record from ERS and establishes a new DLN for reinput. 3.22.3.15.19 (01-01-2024) Field 01ACD Audit Codes - 10 Positions This is edited by Code & Edit in the bottom right margin of Page 1. The valid Audit Codes for Form 1040-NR (Doc. Code 72 and 73) are 2, 3, B, C, E, H, J, K, L, N, P, Q, R, S, U, V, W, X, and Z. The valid Audit Codes for Form 1040-SS (sp)/Form 1040-SS (Doc. Code 26 and 27) are 2, 3, B, H, J, K, L, U, X, and Z. Invalid Conditions - are as follows: For Form 1040-NR(Doc. Code 72/73) and the Audit Code is other than 2, 3, B, C, H, J, K, L, N, P, Q, S, U, V, W, X, or Z. For Form 1040-SS (sp)/Form 1040-SS (Doc. Code 26/27) and the Audit Code is other than 2, 3, B, H, K, L, U, X, or Z. Correction Procedures - Compare the field on the screen with the entry on the return. If edited or transcribed incorrectly, correct the screen display and the code entered in the lower right margin of page 1 of the return. If the code is illegible, use the following list to determine the correct Audit Code: Code Explanation 2 Form 8862 attached with Child Tax Credit/ACTC/ODC portion completed. 3 Form 8862 attached with American Opportunity Credit portion completed. H Form 8891 is attached Form 926 is attached Form 3520, Form 3520-A is attached Form 5471 or Form 5472 attached Schedule B, line 8 box marked "yes" . J Special Use. K Preparer identified by Compliance Division Criminal Investigation Staff Refund Scheme Return/Refund Disclosure Statement, Refund Scheme, Preparer Identified is attached Form 1040-NR with Form 8854 attached L Joint committee case IRC 6501(d), request for prompt audit or assessment. N Form 1040-NR filer occupation is entertainer or professional athlete. U Form 8862 attached with EIC portion completed X Return file contains an ITIN for the primary and/or secondary taxpayer. This code is entered by Examiners in ITIN. It is not for use by examiners in ERS. Z Form 8919 Uncollected Social Security and Medicare Tax on Wages is filed with the return and is incomplete. Note: Audit Code "D" is NOT valid for Form 1040-NR. Collections has agreed to discontinue editing Audit Code "D" on these returns until further notice. Delete Audit Code "D" if edited/entered on a Form 1040-NR. If the correct audit code cannot be determined delete the audit code from the screen. 3.22.3.16 (01-01-2019) Section 02 - Form 3471 (Edit Sheet) and ERS Validation Section 02 contains edited information from Form 3471, Edit Sheet and fields used for ERS validation. 3.22.3.16.1 (01-01-2024) Error Record Format-Section 02 Section 02 contains the following Fields: Form 1040-NR Form 1040-SS (sp)/Form 1040-SS Field Title 02RI 02RI Revalidation Indicator 02DTR 02DTR Dependent TIN Requirement 02CD1 02CD1 Unallowable Code-1 02AM1 02AM1 Unallowable Amount-1 02CD2 02CD2 Unallowable Code -2 02AM2 02AM2 Unallowable Amount-2 02CD3 02CD3 Unallowable Code -3 02AM3 02AM3 Unallowable Amount -3 02AGI Unallowable Adjusted Gross Income 02ITM Unallowable Itemized 02NI Unallowable Net Income 02TXA 02TXA Unallowable Tax Adjustment 02RPD 02RPD Correspondence Received Date 0206 0206 Late Filing Code 02PDP 02PDP Pre-Determined Delinquency Penalty 0208 0208 Form 4563 Indicator 0211 0211 ID Number Penalty 02W2A ITIN Return First W-2 SSN (ERS Input Only) 02W2B ITIN Return Second W-2 SSN (ERS Input Only) 02ARC 02ARC ACA Resolution Code (ERS Input Only) 3.22.3.16.2 (01-01-2024) Form 3471 - Unallowables on International Tax Returns Don’t enter unallowable codes (UA) or unallowable amounts on any international tax returns including Form 1040, Form 1040-NR, Form 1040-SS, and Form 1040-SS (sp). Unallowable instructions in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, don’t apply to any international returns. LB&I Compliance has developed other methods to select unallowable cases for review. Delete entries if present in the following fields in Section 02: 02CD1, 02AM1, 02CD2, 02AM2, 02CD3, 02AM3, 02AGI, 02ITM, 02NI, and 02TXA. 3.22.3.16.3 (01-01-2015) Field 0208 Form 4563 Indicator Description -This field is edited on line 8 of Edit Sheet Form 3471. Invalid Condition - Any entry other than "1" . Correction Procedures - If Form 4563 is attached to the return, Code & Edit will enter a "1" . This number must be entered in Field 0208. Delete an entry other than a "1" , if present in this Field. Field 0208 is only valid for FLC 21. 3.22.3.17 (01-01-2020) Section 03 - Simplified Tax Return For Section 03 refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, Section 03, for field descriptions, invalid conditions and correction procedures unless otherwise specified. 3.22.3.17.1 (01-01-2024) Error Record Format-Section 03 Section 03 contains the following Fields: Form 1040-NR Form 1040-SS (sp)/Form 1040-SS Field Title 03WG W-2 Wages 03TEX Total Income Exempt by Treaty 03TWG Total Wages 03TEI Tax Exempt Interest 03INT Taxable Interest 03QD Qualified Dividends 03DIV Ordinary Dividends 03GIR Gross Individual Retirement Account (IRA) Distributions 03TIR Taxable IRA Distributions 03GPA Gross Pensions and Annuities 03TPA Taxable Pensions and Annuities 03CGL Schedule D Profit/Loss 03ADD Additional Income 03TOT Total Income 03SFE Scholarship or Fellowship Grants Excluded 03TAJ Total Adjustments 03AGI Adjusted Gross Income 03NCC Non-Itemized Charitable Contribution Deduction Amount 03QBI Qualified Business Income Deduction 03INC Taxable Income 03TTX Tentative Tax 03AF Additional Forms 8814 attached (ERS only) 03AT Additional Forms 8814 Tax (ERS only) 03HCR 03HCR Form 8885 Health Coverage Recapture Amount (ERS Only) 03COD Child Tax and Other Dependent Credit Amount 03NRC Total Statutory Credits 03TNC Tax on Income Not Effectively Connected 03OTX Total Other Taxes 03GTT Gross Transportation Tax 03TAX 03TAX Total Tax 03WH Withholding-Form(s) W-2 or 1099 0325E Withholding-Form(s) 8805 0325F Withholding-Form(s) 8288-A 0325G Withholding-Form(s) 1042-S 03ESP 03ESP Estimated Tax Payments 03ACT 03ACT Additional Child Tax Credit 0329 Form 1040C 03RCR Refundable Credits 03PAY 03PAY Total Payments 03BDR 03BDR Balance Due/Refund 03CEL 03CEL Estimated Tax Credit Elect 03ETP Pre-Determined Estimated Tax Penalty 03AI 03AI Third Party Authorization Indicator 03TPN 03TPN Third Party Designee Name 03TPI 03TPI Third Party Designee ID Number 03EMW 03EMW E-File Mandate Waiver Indicator 03PT 03PT Preparer TIN 03PE 03PE Preparer EIN 03PC 03PC Preparer Code 03PTN 03PTN Preparer Telephone Number 3.22.3.17.2 (01-01-2023) Fields 03WG - W-2 Wages W-2 Wages is transcribed in Field 03WG from the following lines: TY20 and later- line 1a, Form 1040-NR TY19 - line 8, Form 1040-NR. Refer to EC 218 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. For TY21 and prior Household Employees may not have Form W-2 to support an entry on line 1a, Form 1040-NR. They are instructed to write "HSH" and the amount of earnings to the left of the wages line. Consider this a "Form W-2 type" statement. 3.22.3.17.3 (01-01-2024) Field 03TEX - Total Income Exempt by Treaty Total Income Exempt by Treaty is transcribed in Field 03TEX from the following lines: TY 22 and later - line 1k Form 1040-NR TY20 and TY21 - line 1c, Form 1040-NR TY19 - line 22, Form 1040-NR The amount from this field is used for information purposes only and not used in the computation of total income. Refer to EC 218 in IRM 3.22.3.173.2.2.1 (3) for Form 1040-NR. The taxpayer's entry on line 15 (TY20 and TY21, line c) must correspond to the information provided about treaty-exempt income reported on Schedule OI, item L, Form 1040-NR, , or elsewhere on the return. The taxpayer must identify: the name of the foreign country whose tax treaty with the United States provides his exempt status; the treaty article number which exempts his specific income; and the amount of the exempt income for the tax year. Note: In addition, if the taxpayer claims the benefits of the Government Service treaty article listed in Exhibit 3.22.3-2 verify that the taxpayer holds an A1 or A2 visa and refer to the Exhibit to determine if the claim is valid. All three (3) items listed above must be identified before validation of the treaty can be completed. Correspond for any missing information by selecting paragraph J on Form 13900. If no reply or an incomplete reply, disallow the treaty exemption. Treaty income exemption claims are validated using the tax treaty table at Exhibit 3.22.3-1, Table 2. Compensation for Personal Services, and the table of exempt countries for government service employees at Exhibit 3.22.3-2. Include the guidance in the footnotes on the tax treaty table when validating treaty exemption claims. The footnotes are based on the specific provisions in each of the tax treaties. Example: Per the tax treaty table, a resident of Australia may claim an exemption of $10,000 under Article 17 for public entertainment income for the tax year. The table has footnote "25" attached to the maximum amount on the table. Footnote 25 says that the exemption doesn’t apply if gross receipts of this type of income exceed the maximum amount. As a result, the exemption isn’t allowed when the total Article 17 income is over $10,000. If the taxpayer provides a treaty article number, but doesn’t cite the subparagraphs, accept the treaty article without the subparagraphs if the country and amount are valid for that article number on the treaty tables. 3.22.3.17.4 (11-03-2022) Field 03TWG Total Wages Total Wages is transcribed in Field 03TWG from line 1z Form 1040-NR. Refer to EC 201 in IRM 3.12.3Error Resolution, Individual Income Tax returns. 3.22.3.17.5 (11-08-2021) Field 03TEI Tax Exempt Interest Tax Exempt Interest is transcribed in Field 03TEI from the following lines: TY20 and later- line 2a, Form 1040-NR TY19 - line 9b, Form 1040-NR ≡ ≡ ≡ ≡ ≡ taxpayer's entry. 3.22.3.17.6 (11-08-2021) Field 03INT Taxable Interest Taxable Interest is transcribed in Field 03INT from the following lines: TY20 and later - line 2b, Form 1040-NR TY19 - line 9a, Form 1040-NR Refer to EC 218 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. United States bank interest, savings and loan or similar association interest and certain deposits with United States insurance companies is not taxable. Delete entry where reported. Note: Generally, dividends received from stocks and mutual funds, as well as interest received from bonds not in registered form, is considered taxable income. 3.22.3.17.7 (11-08-2021) Field 03QD Qualified Dividends Qualified Dividends is transcribed in Field 03QD from the following lines: TY20 and later - line 3a, Form 1040-NR TY19 - line 10b, Form 1040-NR Refer to EC 218 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.8 (11-08-2021) Field 03DIV Ordinary Dividends Ordinary Dividends is transcribed in Field 03DIV from the following lines: TY20 and later - line 3b, Form 1040-NR TY19 - line 10a, Form 1040-NR Refer to EC 218 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.9 (11-08-2021) Fields 03GIR and 03TIR Gross and Taxable IRA Distribution Gross IRA Distribution is transcribed in Field 03GIR from the following lines: TY20 and later - line 4a, Form 1040-NR TY19 - line 16a, Form 1040-NR Taxable IRA Distribution is transcribed in Field 03TIR from the following lines: TY20 and later - line 4b, Form 1040-NR TY19 - line 16b, Form 1040-NR Refer to EC 218 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. In TY 2018, IRA amounts are combined with pensions and annuities and reported on line 17a and 17b. 3.22.3.17.10 (11-08-2021) Fields 03GPA and 03TPA Gross and Taxable Pensions and Annuities Gross Pensions and Annuities is transcribed in Field 03GPA from the following lines: TY20 and later - line 5a, Form 1040-NR TY19 - line 17a, Form 1040-NR Taxable Pensions and Annuities is transcribed in Field 03TPA from the following lines: TY20 and later - line 5b, Form 1040-NR TY19 - line 17b, Form 1040-NR Refer to EC 218 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.11 (11-08-2021) Field 03CGL Schedule D Profit/Loss Capital Gains is transcribed in Field 03CGL from the following lines: TY20 and later - line 7, Form 1040-NR TY19 - line 14, Form 1040-NR Refer to EC 204 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.12 (11-08-2021) Field 03ADD Additional Income Additional Income is transcribed in Field 03ADD from the following line: TY20 and later - line 8, Form 1040-NR This field did not exist on TY19 Form 1040-NR, but for TY20 and later this field will be transcribed on Form 1040-NR. Refer to EC 218 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.13 (11-08-2021) Field 03TOT Total Income Total Income is transcribed in Field 03TOT from the following lines: TY20 and later - line 9, Form 1040-NR TY19 - line 23, Form 1040-NR; line 7b Form 1040 . Refer to EC 218 in both IRM 3.22.3.173 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.14 (01-01-2023) Fields 03SFE Scholarship or Fellowship Grants Excluded Scholarship or Fellowship Grants Excluded is transcribed in Field 03SFE from the following lines: TY22 and later is reserved TY20 and TY21 - line 10c, Form 1040-NR TY19 - line 31, Form 1040-NR Refer to EC 229 in IRM 3.22.3.180.2.2 (Form 1040-NR). 3.22.3.17.15 (01-01-2024) Field 03TAJ Total Adjustments Total Adjustments is transcribed in Field 03TAJ from the following lines: TY23 - line 10 Form 1040-NR TY20 -TY22 - line 10d, Form 1040-NR TY19 - line 34, Form 1040-NR Refer to EC 229 in both IRM 3.22.3. and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.16 (11-08-2021) Field 03AGI Adjusted Gross Income (AGI) Adjusted Gross Income is transcribed in Field 03AGI from the following lines: TY20 and later - line 11, Form 1040-NR TY19 - line 35, Form 1040-NR Refer to EC 230 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.17 (01-01-2023) Field 03NCC Non Itemized Charitable Contribution Deduction Non Itemized Charitable Contribution Deduction is for TY 20 and 21 only is transcribed in Field 03NCC from the following line: TY21 - line 12b, Form 1040-NR TY20 - line 10b, Form 1040-NR Refer to EC 228 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.18 (11-08-2021) Field 03QBI Qualified Business Income Deduction Qualified Business Income Deduction is transcribed in Field 03QBI from the following lines: TY20 and later - line 13a, Form 1040-NR TY19 - line 38, Form 1040-NR Refer to EC 248, 249 and EC 250 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.19 (11-08-2021) Field 03INC Taxable Income Taxable Income is transcribed in Field 03INC from the following lines: TY20 and later - line 15, Form 1040-NR TY19 - line 41, Form 1040-NR Refer to EC 250 and EC 265 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.20 (11-08-2021) Field 03TTX Tentative Tax Tentative Tax is transcribed in Field 03TTX from the following lines: TY20 and later - line 16, Form 1040-NR TY19 - line 42, Form 1040-NR Refer to EC 265 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.21 (01-01-2020) Field 03AF Additional Form 8814 attached (ERS only) This field is ERS input only. Refer to EC 265 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.22 (01-01-2020) Field 03AT Additional Form 8814 Tax (ERS only) This field is ERS input only. Refer to EC 265 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.23 (01-01-2020) Field 03HCR Form 8885 Health Coverage Recapture Amount (ERS Only) This field is ERS input only. 3.22.3.17.24 (11-08-2021) Field 03COD Child Tax and Other Dependent Credit Amount Child Tax and Other Dependent Credit Amount is transcribed in Field 03COD from the following lines: TY20 and later - line 19, Form 1040-NR TY19 - line 49, Form 1040-NR Refer to EC 290 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.25 (11-08-2021) Field 03NRC Total Statutory Credits Total Statutory Credits is transcribed in Field 03NRC from the following lines: TY20 and later - line 21, Form 1040-NR TY19 - line 52, Form 1040-NR Refer to EC 310 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.26 (11-08-2021) Field 03TNC Tax On Not Effectively Connected Income (NEC) Tax on Not Effectively Connected Income is transcribed in Field 03TNC from the following lines: TY20 and later - line 23a, Form 1040-NR TY19 - line 54, Form 1040-NR Income not effectively connected with a United States trade or business (NEC) reported on line 23a, Form 1040-NR, is supported by Schedule NEC, of Form 1040-NR and is taxed at a rate of 30 percent unless the taxpayer's country of residence has a different tax rate due to tax treaty provisions. Exhibit 3.22.3-3, Treaty Table 1. Tax Rates on Income Other than Personal Service Income Under Chapter 3, Internal Revenue Code, and Income Tax Treaties, displays the tax treaty rates applicable to NEC income. Refer to IRM 3.22.3.237.3, Correction Procedures - EC 311, for instructions on validating treaty tax rates used on Schedule NEC. 3.22.3.17.27 (11-08-2021) Field 03OTX Total Other Taxes Total Other Taxes is transcribed in Field 03OTX from the following line: TY20 and later - line 23b, Form 1040-NR This field did not exist on TY19 Form 1040-NR, but for TY20 and later this field will be transcribed on Form 1040-NR. Refer to EC 333 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.28 (11-08-2021) Field 03GTT Gross Transportation Tax Gross Transportation Tax is transcribed in Field 03GTT from the following lines: TY20 and later - line 23c, Form 1040-NR TY19 - line 58, Form 1040-NR Refer to EC 334 in IRM 3.22.3.251. 3.22.3.17.29 (01-01-2024) Field 03TAX Total Tax Total Tax is transcribed in Field 03TAX from the following lines: TY20 and later - line 24, Form 1040-NR; line 6 Form 1040-SS (sp)/Form 1040-SS TY19 - line 61, Form 1040-NR; line 6 Form 1040-SS (sp)/1040-SS Refer to EC 334 in both IRM 3.22.3.251 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.30 (11-08-2021) Field 03WH Withholding Withholding is transcribed in Field 03WH from the following lines: TY20 and later- line 25d, Form 1040-NR TY19 - line 62a, Form 1040-NR Field 03WH is for withholding from Form(s) W-2 and Form(s) 1099 and other forms. Form 1040-NR also has other types of withholding claims. Refer to the instructions for Fields 0325E, 0325F and 0325G, Form 1040-NR. Refer to EC 366 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.31 (11-08-2021) Field 0325E Form 8805 Withholding Form 8805 Withholding is transcribed in Field 0325E from the following lines: TY20 and later - line 25e, Form 1040-NR TY19 - line 62b, Form 1040-NR Refer to EC 366 in IRM 3.22.3.269.4.4. 3.22.3.17.32 (11-08-2021) Field 0325F Form 8288-A Withholding Form 8288-A Withholding is transcribed in Field 0325F from the following lines: TY20 and later - line 25f, Form 1040-NR TY19 - line 62c, Form 1040-NR Refer to EC 366 in IRM 3.22.3.269.4.5. 3.22.3.17.33 (11-08-2021) Fields 0325G/0318B Form 1042-S Withholding Form 1042-S Withholding is transcribed in Field 0325G (Form 1040-NR) from the following lines: TY20 and later- line 25g, Form 1040-NR TY19 - line 62d, Form 1040-NR Refer to EC 366 in IRM 3.22.3.269.4.6 3.22.3.17.34 (01-01-2024) Fields 03ESP Estimated Tax Payments Estimated Tax Payments is transcribed in Field 03ESP from the following lines: TY20 and later - line 26, Form 1040-NR; line 7, Form 1040-SS (sp)/Form 1040-SS TY19 - line 63, Form 1040-NR; line 7, Form 1040-SS (sp)/Form 1040-SS Refer to EC 366 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.35 (01-01-2024) Field 03ACT Additional Child Tax Credit/Refundable Child Tax Credit Additional Child Tax Credit/Refundable Child Tax Credit is transcribed in Field 03ACT from the following lines: TY20 and later- line 28, Form 1040-NR; line 9, Form 1040-SS (sp)/ Form 1040-SS TY19 - line 64, Form 1040-NR; line 9, Form 1040(PR)/Form 1040-SS Refer to EC 344 in IRM 3.22.3.256. 3.22.3.17.36 (11-08-2021) Fields 0329/0320 Credit for amount paid with Form 1040-C Credit for amount paid with Form 1040-C is transcribed in Field 0329 (Form 1040-NR) from the following lines: TY20 and later - line 29, Form 1040-NR; TY19 - line 70, Form 1040-NR 3.22.3.17.37 (11-08-2021) Field 03RCR Refundable Credits Refundable Credits is transcribed in Field 03RCR from the following line: TY20 and later - line 32, Form 1040-NR This field did not exist on TY19 Form 1040-NR, but for TY20 and later this field will be transcribed on Form 1040-NR. Refer to EC 364 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.17.38 (01-01-2024) Field 03PAY Total Payments Total Payments is transcribed in Field 03PAY from the following lines: TY20 and later- line 33, Form 1040-NR; line 12, Form 1040-SS (sp)/ Form 1040-SS TY19 - line 71, Form 1040-NR; line 11, Form 1040(PR)/Form 1040-SS Refer to EC 366 in IRM 3.22.3.269.4.1. 3.22.3.17.39 (01-01-2024) Field 03BDR Balance Due/Refund Balance Due Refund is transcribed in Field 03BDR and can be either negative (meaning a refund due to taxpayer) or positive (meaning amount due to IRS) and is transcribed from the following lines: TY20 and later(Negative) - line 35a, Form 1040-NR; line 14a, Form 1040-SS (sp)/ Form 1040-SS TY19 (Negative) - line 73a, Form 1040-NR; line 13a, Form 1040(PR)/Form 1040-SS TY20 and later (Positive) - line 37, Form 1040-NR; line 16, Form 1040(PR)/Form 1040-SS TY19 (Positive) - line 75, Form 1040-NR; line 15, Form 1040(PR)/Form 1040-SS Refer to EC 370 in IRM 3.22.3.271. 3.22.3.17.40 (01-01-2024) Field 03CEL Estimated Tax Credit Elect Estimated Tax Credit Elect is transcribed in Field 03CEL from the following lines: TY20 and later - line 36, Form 1040-NR; line 15, Form 1040-SS (sp)/Form Form 1040-SS TY19 - line 74, Form 1040-NR; line 14, Form 1040(PR)/Form 1040-SS Credit Election amount Field is used to indicate the amount of overpayment that the taxpayer wants to allocate toward the next year’s tax liability. 3.22.3.17.41 (01-03-2022) Field 03ETP Pre-Determined Estimated Tax Penalty Estimated Tax Penalty is transcribed in Field 03ETP from the following lines: TY20 and later - line 38, Form 1040-NR TY19 - line 76, Form 1040-NR 3.22.3.17.42 (01-01-2024) Field 03AI Third Party Authorization Indicator This field is transcribed from the third party designee area of page 2, Form 1040-NR; page 1, Form 1040-SS (sp) or Form 1040-SS 3.22.3.17.43 (01-01-2024) Field 03TPN Third Party Designee Name This field is transcribed from the Third Party Designee area on page 2, Form 1040-NR; page 1, Form 1040-SS (sp) or Form 1040-SS. It is 20 characters in length. 3.22.3.17.44 (01-01-2024) Field 03TPI Third Party Designee ID Number This field is transcribed from the Third Party Designee area on page 2, Form 1040-NR, Form 1040-SS (sp) or Form 1040-SS. The taxpayer is instructed to enter 5 digits, alpha or numeric that they choose as their ID Number. 3.22.3.17.45 (01-01-2024) Field 03EMW E-FIle Mandate Waiver Indicator This field is transcribed from the lower right of page 2, Form 1040-NR, and page 1 of Form 1040-SS (sp), or Form 1040-SS. 3.22.3.17.46 (01-01-2024) Field 03PT Preparer TIN This field is transcribed from the preparer’s area of page 2, Form 1040-NR, Form 1040-SS (sp), or Form 1040-SS. 3.22.3.17.47 (01-01-2024) Field 03PE Preparer EIN This field is transcribed from the preparer’s area of page 2, Form 1040-NR, Form 1040-SS (sp), or Form 1040-SS. 3.22.3.17.48 (01-01-2024) Field 03PC Preparer Code This code will be edited to the right of the Preparer's EIN on page 2, Form 1040-NR and Form 1040-SS (sp) or Form 1040-SS. 3.22.3.17.49 (01-01-2024) Field 03PTN Preparer Telephone Number This field is transcribed from under the Paid Preparer's information in the lower right-hand margin of page 2, Form 1040-NRForm 1040-SS (sp) or Form 1040-SS. It is a ten-digit field that can contain alpha, numeric and blank entries. 3.22.3.18 (01-01-2020) Section 04 - Additional Income and Adjustments to Income For Section 04 refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, Section 04, for field descriptions, invalid conditions and corrections unless otherwise specified. 3.22.3.18.1 (01-01-2024) Error Record Format - Section 04 Section 04 contains the following Fields: Note: The "Location on the Form" applies to Schedule 1, Form 1040-NR, Form 1040-SS (sp), and Form 1040-SS unless specified otherwise: Form 1040-NR Form 1040-SS (sp)/Form 1040-SS Field Title 0401 State Income Tax Refund 0403 Combined Schedule C Profit/Loss 0404 Other Gains/Losses 0405 Schedule E Profit/Loss 0406 Combined Schedule F Profit/Loss 0407 Taxable Unemployment Compensation 04SFG Scholarship Fellowship Grant Amount 04OTI Other Income 04EDU Educator Expenses 04CBE Reservist and Other Business Expense Amounts 04HSA Health Savings Account Deduction 04MOV Moving Expenses 04DSE Deduction for Self-Employment (SE)Tax 04SEP SE Retirement Plans Deductions 04HID Self Employed Health Insurance 04PEW Penalty on Savings Withdrawal 04IRA IRA Deduction 04SLI Student Loan Interest Deduction 04MSA Archer Medical Savings Account 04ADJ Other Adjustments 3.22.3.18.2 (11-08-2021) Fields 0401/0404 - State Income Tax Refund State Income Tax Refund is transcribed in Field 0401 (Form 1040-NR) from the following lines: TY20 and later - line 1, Schedule 1, Form 1040-NR TY19 - line 11, Form 1040-NR Refer to EC 218 in both IRM 3.22.3. and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.18.3 (11-08-2021) Field 0403 Combined Schedule C Profit/Loss Combined Schedule C Profit/Loss is transcribed in Field 0403 from the following lines: TY20 and later- line 3, Schedule 1, Form 1040-NR TY19 - line 13, Form 1040-NR Refer to EC 202 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.18.4 (11-08-2021) Field 0404 Other Gains/Losses Other Gains/Losses is transcribed in Field 0404 from the following lines: TY20 and later - line 4, Schedule 1, Form 1040-NR TY19 - line 15, Form 1040-NR Refer to EC 218 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.18.5 (11-08-2021) Field 0405 Schedule E Income/Loss Schedule E Income/Loss is transcribed in Field 0405 from the following lines: TY20 and later - line 5, Schedule 1, Form 1040-NR TY19 - line 18, Form 1040-NR Refer to EC 206 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.18.6 (11-08-2021) Field 0406 Combined Schedule F Profit/Loss Combined Schedule F Profit/Loss is transcribed in Field 0406 from the following lines: TY20 and later - line 6, Schedule 1, Form 1040-NR TY19 - line 19, Form 1040-NR Refer to EC 208 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.18.7 (11-08-2021) Field 0407 Taxable Unemployment Taxable Unemployment is transcribed in Field 0407 from the following lines: TY20 and later - line 7, Schedule 1, Form 1040-NR TY19 - line 20, Form 1040-NR Refer to EC 218 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. For TY2009 ONLY, the first $2400 in unemployment compensation is not taxable. 3.22.3.18.8 (01-01-2024) Field 04SFG - Scholarship or Fellowship Grants Scholarship or Fellowship Grants is transcribed in Field 04SFG from the following lines: TY 22 and later Schedule 1, line 8r Form 1040-NR TY20 and TY21- line 1b, Form 1040-NR TY19 - line 12, Form 1040-NR, Scholarships/Fellowships/Grants received are reported differently based on how they are reported to the taxpayer. Taxpayers use Form 1040, line 1a, to report amounts from Form W-2 issued by a college or educational institution. These are amounts paid for services for teaching, research, etc. An entry on line 1a, Form 1040-NR, may be supported by one of the following documents: Form W-2 (issued by a college or an educational institution), Form 1042-S , Income Code 16 issued by a college or educational institution (Income Code 15 in TY 2014 and prior), A statement from the educational institution (on their letterhead) which identifies the income paid to the nonresident alien taxpayer as a Scholarship or Fellowship Grant. Taxpayers use Schedule 1, line 8r, to report amounts from Form 1042-S, Income Code 16 issued by a college or educational institution If the Scholarship or Fellowship Grant income is included in W-2 Wages (Field 03WG of Form 1040-NR), adjust the wages and enter the Scholarship or Fellowship Grants in Field 04SFG of Form 1040-NR. Caution: If it can be determined that the taxpayer is claiming a tax treaty exemption of Scholarship or Fellowship Grant income see EC 218 instructions at IRM 3.22.3.173.2.2.1 (2) (Form 1040-NR). 3.22.3.18.9 (01-01-2023) Field 04OTI Other Income Other Income is transcribed in Field 04OTI from the following lines: TY21 and later- Line 9, Schedule 1, Form 1040-NR TY20 - line 8, Schedule 1, Form 1040-NR TY19 - line 21, Form 1040-NR Refer to EC 218 in both IRM 3.22.3.173 and IRM 3.12.3 Error Resolution, Individual Income Tax Returns. 3.22.3.18.10 (01-01-2024) Field 04RTA Form 982 Indicator This field is only valid on a Form 1040-NR or a Form 1040-SS (sp)/ Form 1040-SS. Note: Field 04RTA is the only field that is in Section 04 on a Form 1040-SS (sp)/Form 1040-SS . An entry is required in Field 04RTA when Form 982 is present. Enter a "1" in Field 04RTA. 3.22.3.18.11 (01-01-2023) Field 04EDU Educator Expense Educator Expense is transcribed in Field 04EDU from the following lines: TY21 and later - line 11, Schedule 1, Form 1040-NR TY20 - line 10, Schedule 1, Form 1040-NR TY19 - line 24, Form 1040-NR Refer to EC 220 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.18.12 (01-01-2023) Field 04CBE Reservist and Other Business Expenses Amount Reservist and Other Business Expenses Amount is transcribed in Field 04CBE from the following line: TY21 and later - line 12, Schedule 1, Form 1040-NR This field did not exist on TY20 Form 1040-NR, but for TY21 and later this field will be transcribed on Form 1040-NR. Refer to EC 229 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.18.13 (01-01-2023) Field 04HSA Health Savings Account Deduction Health Savings Account Deduction is transcribed in Field 04HSA from the following lines: TY21 and later - line 13, Schedule 1, Form 1040-NR TY20 - line 12, Schedule 1, Form 1040-NR TY19 - line 25, Form 1040-NR Refer to EC 226 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.18.14 (01-01-2023) Field 04MOV Moving Expenses Moving Expenses is transcribed in Field 04MOV from the following lines: TY21 and later - line 14, Schedule 1, Form 1040-NR TY20 - line 13, Schedule 1, Form 1040-NR TY19 - line 26, Form 1040-NR Refer to EC 229 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.18.15 (01-01-2023) Field 04DSE Deduction for Self-Employment Tax Amount Deduction for Self-Employment Tax Amount is transcribed in Field 04DSE from the following lines: TY21 and later - line 15, Schedule 1, Form 1040-NR TY20 - line 14, Schedule 1, Form 1040-NR TY19 - line 27, Form 1040-NR Nonresident aliens who are filing a dual-status tax return are required to pay SE tax on their United States Self-Employment income and are allowed to take a deduction for one-half of the SE tax paid on line 27. Refer to EC 211 in IRM 3.22.3.168. 3.22.3.18.16 (01-01-2023) Field 04SEP SE Retirement Plans Deduction SE Retirement Plans Deduction is transcribed in Field 04SEP from the following lines: TY21 and later - line 16, Schedule 1, Form 1040-NR TY20 - line 15, Schedule 1, Form 1040-NR TY19 - line 28, Form 1040-NR Refer to EC 229 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.18.17 (01-01-2023) Field 04HID Self Employed Health Insurance Self Employed Health Insurance is transcribed in Field 04HID from the following lines: TY21 and later - line 17, Schedule 1, Form 1040-NR TY20 - line 16, Schedule 1, Form 1040-NR TY19 - line 29, Form 1040-NR Refer to EC 229 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.18.18 (01-01-2023) Field 04PEW Penalty on Early Withdrawal of Savings Penalty on Early Withdrawal of Savings is transcribed in Field 04PEW from the following lines: TY21 and later - line 18, Schedule 1, Form 1040-NR TY20 - line 17, Schedule 1, Form 1040-NR TY19 - line 30, Form 1040-NR Refer to EC 229 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.18.19 (01-01-2023) Field 04IRA IRA Deduction IRA Deduction is transcribed in Field 04IRA from the following lines: TY21 and later - line 20, Schedule 1, Form 1040-NR TY20 - line 19, Schedule 1, Form 1040-NR TY19 - line 32, Form 1040-NR Refer to EC 222 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.18.20 (01-01-2023) Field 04SLI Student Loan Interest Deduction Student Loan Interest Deduction is transcribed in Field 04SLI (Form 1040-NR) from the following lines: TY21 and later - line 21, Schedule 1, Form 1040-NR TY20 - line 20, Schedule 1, Form 1040-NR TY19 - line 33, Form 1040-NR Refer to EC 224 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.18.21 (01-01-2023) Field 04MSA Archer MSA Archer MSA is transcribed in Field 04MSA from the following lines: TY21 and later - line 23, Schedule 1, Form 1040-NR TY20 - on dotted portion of line 22, Schedule 1, Form 1040-NR TY19 - on dotted portion of line 34, Form 1040-NR Refer to EC 229 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns 3.22.3.18.22 (01-01-2023) Field 04ADJ Other Adjustments (dotted portion) Other Adjustments is transcribed in Field 04ADJ from the following lines: TY21 and later - line 25, Schedule 1, Form 1040-NR TY20 - on dotted portion of line 22, Schedule 1, Form 1040-NR TY19 - on dotted portion of line 34, Form 1040-NR Refer to EC 229 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19 (01-01-2020) Section 05 - Additional Taxes, Additional Credits and Payments For Section 05 refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, Section 05, for field description, invalid conditions and correction procedures unless otherwise specified. 3.22.3.19.1 (01-01-2024) Error Record Format-Section 05 The following fields will be displayed for Form 1040-NR, Form 1040-SS (sp), and Form 1040-SS. Form 1040-NR Form 1040-SS (sp)/Form 1040-SS Field Title 05201 Alternative Minimum Tax 05202 Advance Premium Tax Credit Repayment 05204 0503 Combined Self-Employment Tax 05SSM Unreported Social Security and Medicare Tax on Form 4137 and Form 8919 05IRA Tax on Early Distributions 05HSH 05HSH Combined Household Employment Taxes 05FHB First Time Home Buyer Repayment from Form 5405 05AMT FORM 8959 Additional Medicare Tax 05NIT FORM 8960 Net Investment Income Tax 05USS Uncollected SST Tax on Tips 05III Interest due on Installment Income (IRC 453 Tax, Code L) 05IDT Interest on Deferred Tax (IRC 453 Tax, Code A)(ERS only) 05LIR Form 8611 Recapture 05TAT Total Additional Taxes 05CTR 05CTR Form 8812 Additional Tax 05965 Section 965 Tax Installment (ERS Only) 05TL Section 965 Tax Liability (ERS Only) 05301 Foreign Tax Credit 05302 Credit for Child and Dependent Care Expenses 05304 Retirement Savings Contribution 0505A Residential Clean Energy Credit 0505B Energy Efficient Home Improvement Credit 05GBC General Business Credits 05PYM Credit for Prior Year Minimum Tax 05ADC Adoption Credit 05AMC Form 8910 Alternative Motor Vehicle Credit 05CVC Clean Vehicle Credit Amount 05MIC Mortgage Interest Credits 05POC Previously Owned Clean Vehicles Credit 05OSC Other Statutory Credits 05ONC Total Other Nonrefundable Credits 05PTC Reconciled Premium Tax Credit Amount 05ESS Excess Social Security/tier 1 RRTA withheld 05EXT 05EXT Form 4868 Payment 05ESS Excess Social Security/tier 1 RRTA withheld 05FUE Fuel Tax Credit 05RIC Form 2439 Regulated Investment Tax Credit 05EYR Credit For Earlier Year Income Repayment 05SFL Sick and Family Leave Credit 05HCC 05HCC Form 8885 Health Coverage Tax Credit 05SFL Sick and Family Leave Credit 05SL2 Sick and Family Leave Credit Amount After 03-21-2021 05DHS Deferred Taxes Schedule H-Schedule SE 05OTH 05OTH Other Payment or Credit Amount (ERS only) 05TYP 05TYP Other Payment Credit Type Code(ERS only) 05RCC Refundable Child Care Credit 05SL2 Sick and Family Leave Credits After 03-31-2021 05OPR Total Other Payments and Refundable Credits 3.22.3.19.2 (11-08-2021) Field 05201 Alternative Minimum Tax Alternative Minimum Tax is transcribed in Field 05201 from the following lines: TY20 and later - line 1, Schedule 2, Form 1040-NR TY19 - line 43, Form 1040-NR Refer to EC 267 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.3 (11-08-2021) Field 05202 Advance Premium Tax Credit Repayment Advance Premium Tax Credit Repayment is transcribed in Field 05202 from the following lines: TY20 and later - line 2, Schedule 2, Form 1040-NR TY19 - line 44, Form 1040-NR Refer to EC 270 through EC 276 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.4 (01-01-2024) Fields 05204 Combined Self-Employment Tax Combined Self-Employment Tax is transcribed in Field 05204 (Form 1040/Form 1040-NR) or Field 0503 (Form 1040(PR)/Form 1040-SS) from the following lines: TY20 and later - line 4, Schedule 2, Form 1040 or Form 1040-NR; line 3, Form 1040-SS (sp) or Form 1040-SS TY19 - line 55, Form 1040-NR; line 4, Schedule 2, Form 1040; line 3, Form 1040(PR) or Form 1040-SS If a taxpayer is from the USVl, AS, GU, CNMI, or PR and files Form 1040 with a Schedule C, E (Part II present), F, or SE to report self-employment taxes in lieu of Form 1040-SS (sp) or Form 1040-SS, SSPND 610 to renumber as Form 1040-SS. Caution: If the taxpayer is claiming wages and/or withholding, do not convert. Dual-status - A taxpayer may pay self-employment tax only on the income earned during the period of U.S. residency reported on the Form 1040 statement of a dual-status Form 1040-NR. Follow taxpayer intent. Refer to EC 209 in IRM 3.22.3.166. 3.22.3.19.5 (01-01-2023) Fields 05SSM Unreported Social Security and Medicare Tax for Form 4137 and Form 8919 Unreported Social Security and Medicare Tax for Form 4137 and 8919 is transcribed in Field 05SSM (Form 1040-NR)from the following lines: TY21 and later - line 7, Schedule 2, Form 1040-NR TY20 - line 5, Schedule 2, Form 1040-NR TY19 - line 56, Form 1040-NR; line 16, Refer to EC 316 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.6 (01-01-2023) Field 05IRA Tax on Early Distributions Tax on Early Distributions is transcribed in Field 05IRA from the following lines: TY21 and later - line 8, Schedule 2, Form 1040-NR TY20 - line 6, Schedule 2, Form 1040-NR TY19 - line 57, Form 1040-NR Refer to EC 318 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.7 (01-01-2024) Field 05HSH Combined Household Employment Taxes Combined Household Employment Taxes is transcribed in Field 05HSH (Form 1040-NR or Form 1040-SS (sp)/Form 1040-SS) from the following lines: TY21 and later - line 9, Schedule 2, Form 1040-NR TY20 - line 7a, Schedule 2, Form 1040-NR; line 4, Form 1040(PR) or Form 1040-SS. TY19 - line 59a, Form 1040-NR; line 4, Form 1040(PR) or Form 1040-SS Refer to EC 322, EC 324 and EC 326 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.8 (01-01-2023) Field 05FHB First Time Home Buyer Repayment from Form 5405 First Time Home Buyer Repayment from Form 5405 is transcribed in Field 05FHB from the following lines: TY21 and later - line 10, Schedule 2, Form 1040-NR TY20 - line 7b, Schedule 2, Form 1040-NR TY19 - line 59b, Form 1040-NR Refer to EC 328 and EC 329 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.9 (11-03-2022) Field 05AMT Form 8959 Additional Medicare Tax Form 8959 Additional Medicare Tax is transcribed in Field 05AMT from the following lines: TY 21 and later - line 11, Schedule 2, Form 1040-NR. TY 20 and prior - not transcribed. Refer to EC 331 in IRM 3.12.3Error Resolution, Individual Income Tax Returns. and IRM 3.22.3. 3.22.3.19.10 (11-03-2022) Field 05NIT Form 8960 Net Investment Income Tax Form 8960 Net Investment Income Tax is transcribed in Field 05NIT from the following lines: TY 21 and later - line 12, Schedule 2, Form 1040-NR. TY 20 and prior - not transcribed. Refer to EC 332 in IRM 3.12.3Error Resolution, Individual Income Tax Returns. and IRM 3.22.3. 3.22.3.19.11 (01-01-2023) Field 05USS Uncollected Tax on Reported Tips Uncollected Tax on Reported Tips is transcribed in Field 05USS from the following lines: TY21 and later - line 13, Schedule 2, Form 1040-NR TY20 - box c checked on line 8, Schedule 2, Form 1040-NR TY19 - box b checked on line 60, Form 1040-NR Refer to EC 334 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.12 (01-01-2023) Field 05III Interest due on Installment Income (IRC 453 Tax , Code L) . When a IRC 453 code is present, IRC 453 Tax amount is transcribed from the following lines: TY21 and later- line 14, Schedule 2, Form 1040-NR TY20 - box c checked on line 8, Schedule 2, Form 1040-NR TY19 - box b checked on line 60, Form 1040-NR. Refer to EC 333 and EC 334 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.13 (01-01-2023) Field 05IDT Interest on Deferred Tax (IRC 453 Tax, Code A) This field is transcribed in Field 05IDT from the following lines: TY 21 and later - line 15, Schedule 2 Form 1040-NR This field did not exist on TY19 Form 1040-NR, but for TY20 and later this field will be transcribed on Form 1040-NR. Refer to EC 333 and EC 334 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.14 (01-01-2023) Field 05LIR Form 8611 Recapture Tax This field is transcribed from Form 1040-NR when tax from Form 8611 is notated as "LIHRC" on the following lines: TY21 and later - line 16, Schedule 2, Form 1040-NR TY20 - box c checked on line 8, Schedule 2, Form 1040-NR TY19 - box b checked on line 60, Form 1040-NR Refer to EC 333 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.15 (01-01-2023) Field 05TAT Total Additional Taxes This field is transcribed from the following lines: TY21 and later - line 18, Schedule 2, Form 1040-NR TY20 - box c checked on line 8, Schedule 2, Form 1040-NR TY19 - box b checked on line 60, Form 1040-NR. Refer to EC 333 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.16 (01-01-2024) Field 05CTR Schedule 8812 Additional Tax Schedule 8812 Additional Tax is valid for TY21 only and is transcribed in field 05CTR from the following line: TY 21 - line 19, Schedule 2, Form 1040-NR; Line 5b Form 1040-SS (sp)/Form 1040-SS Refer to EC 333 and 334 in both IRM 3.22.3 and IRM 3.12.3Error Resolution, Individual Income Tax Returns. 3.22.3.19.17 (01-01-2023) Field 05965 Section 965 Tax Installment Section 965 Tax Installment is transcribed in Field 05965 from the following line: TY 21 and later - line 20, Schedule 2, Form 1040-NR TY20 - line 9, Schedule 2, Form 1040-NR TY19 and prior - ERS input only Refer to EC 188 for dual-status returns in IRM 3.22.3.156. 3.22.3.19.18 (11-08-2021) Field 05TL Section 965 Tax Liability (ERS Only) This field is an ERS only field for TY 2018 and later on Form 1040-NR. Refer to instructions in EC 188 for dual-status returns in IRM 3.22.3.156. 3.22.3.19.19 (01-01-2023) Field 05301 Foreign Tax Credit Foreign Tax Credit is transcribed in Field 05301 from the following lines: TY 20 and later - line 1, Schedule 3, Form 1040-NR TY19 - line 46, Form 1040-NR Refer to EC 277 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. Foreign Tax Credit cannot be claimed for income that was excluded because of a tax treaty. 3.22.3.19.20 (11-08-2021) Field 05302 Credit for Child and Dependent Care Expenses Credit for Child and Dependent Care Expenses is transcribed in Field 05302 from the following lines: TY20 and later - line 2, Schedule 3, Form 1040-NR TY19 - line 47, Form 1040-NR Refer to EC 278 and EC 279 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.21 (11-08-2021) Field 05304 Retirement Savings Contribution Credit Retirement Savings Contribution Credit is transcribed in Field 05304 from the following lines: TY20 and later - line 4, Schedule 3, Form 1040-NR TY19 - line 48, Form 1040-NR Refer to EC 286 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.22 (01-01-2024) Field 0505A Residential Clean Energy Credit Residential Clean Energy Credit from Form 5695 is transcribed in Field 0505A from the following lines: TY23 line 5a, Schedule 3, Form 1040-NR TY20 -22 - line 5, Schedule 3, Form 1040-NR TY19 - line 50, Form 1040-NR Refer to EC 291 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.23 (11-06-2023) Field 0505B Energy Efficient Home Improvement Credit Energy Efficient Home Improvement credit from Form 5695 is transcribed in Field 0505B from line 5b, Schedule 3. Refer to EC 291 in IRM 3.12.3Error Resolution, Individual Income Tax Returns. 3.22.3.19.24 (01-01-2023) Field 05GBC General Business Credits General Business Credits is transcribed in Field 05GBC from the following lines: TY21 and later - Line 6a, Schedule 3, Form 1040-NR TY20 - box a checked on line 6, Schedule 3, Form 1040-NR TY19 - box a checked on line 51, Form 1040-NR Refer to EC 302 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.25 (01-01-2023) Field 05PYM Credit for Prior Year Minimum Tax Credit for Prior Year Minimum Tax is transcribed in Field 05PYM from the following lines: TY21 and later - Line 6b, Schedule 3 Form 1040-NR TY20 - box b checked on line 6, Schedule 3, Form 1040-NR TY19 - box b checked on line 51, Form 1040-NR Refer to EC 302, EC 308 and EC 310 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.26 (01-01-2023) Field 05ADC Adoption Credit Form 8839 This field is transcribed when a write in Form 8839 is present on the following lines : TY21 and later - line 6c, Schedule 3, Form 1040-NR TY20 - box c checked on line 6, Schedule 3, Form 1040-NR TY19 - box c checked on line 51, Form 1040-NR Refer to EC 294 and EC 299 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.27 (01-01-2024) Field 05AMC Alternative Motor Vehicle Credit Form 8910 This field is transcribed when a write in Form 8910 is present on the following lines: TY21 and 22 - line 6e, Schedule 3, Form 1040-NR TY20 - box c checked on line 6, Schedule 3, Form 1040-NR TY19 - box c checked on line 51, Form 1040-NR Refer to EC 299 and EC 310 in IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.28 (01-01-2024) Field 05CVC Clean Vehicle Credit Amount This field is transcribed when a write in Form 8936 is present on the following lines : TY21 and later - line 6f, Schedule 3, Form 1040-NR TY20 - box c checked on line 6, Schedule 3, Form 1040-NR TY19 - box c checked on line 51, Form 1040-NR Refer to EC 299 and EC 310 in IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.29 (01-01-2023) Field 05MIC Mortgage Interest Credit Form 8396 This field is transcribed when a write in Form 8396 is present on the following lines: TY21 and later - Line 6g, Schedule 3, Form 1040-NR TY20 - box c checked on line 6, Schedule 3, Form 1040-NR TY19 - box c checked on line 51, Form 1040-NR Refer to EC 292 and EC 310 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.30 (11-06-2023) Field 05POC Previously Owned Clean Vehicles Credit This field is transcribed from line 6m, Schedule 3 Form 1040-NR. 3.22.3.19.31 (01-01-2023) Field 05OSC Other Statutory Credits This field is transcribed when an entry is present on the following lines : TY21 and later - line 6h - 6l and line 6z, Schedule 3, Form 1040-NR. Line 6z is ERS input only and must be added to the field total if present. TY20 - box c checked on line 6, Schedule 3, Form 1040-NR TY19 - box c checked on line 51, Form 1040-NR Refer to EC 300, EC 302 and EC 310 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.32 (01-01-2023) Field 05ONC Total Other Nonrefundable Credits Form 3800, Form 8801, and Other Credits is transcribed in Field 05ONC from the following lines: TY21 and later - line 7, Schedule 3, Form 1040-NR TY20 - line 6, Schedule 3, Form 1040-NR TY19 - line 51, Form 1040-NR Refer to EC 302 and EC 310 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.33 (01-01-2023) Field 05PTC - Reconciled Premium Tax Credit Amount Reconciled Premium Tax Credit Amount is transcribed in Field 05PTC from the following lines: TY21 and later - line 9, Schedule 3, Form 1040-NR TY20 - line 8, Schedule 3, Form 1040-NR TY19 - line 65, Form 1040-NR Refer to EC 353 and 354 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.34 (01-01-2024) Field 05EXT Amount Paid with Request for Extension Amount Paid with Request for Extension is transcribed in Field 05EXT from the following lines: TY21 and later - line 10, Schedule 3, Form 1040-NR TY20 - line 9, Schedule 3, Form 1040-NR TY19 - line 66, Form 1040-NR For Form 1040-SS (sp) and Form 1040-SS, this is an ERS input only field (Field 05EXT) and is edited on the bottom right margin for, Form 1040-SS (sp) and Form 1040-SS. 3.22.3.19.35 (01-01-2024) Field 05ESS Excess Social Security Tax Withheld (SST)/Railroad Retirement Tax Withheld (RRTA) Excess Social Security Tax Withheld is transcribed in Field 05ESS (Form 1040-NR or Form 1040-SS (sp)/Form 1040-SS) from the following lines: TY 21 and later - line 11, Schedule 3, Form 1040-NR; Line 8, Form 1040-SS (sp) or Form 1040-SS TY20 - line 10, Schedule 3, Form 1040-NR; line 8, Form 1040(PR) or Form 1040-SS TY19 - line 67, Form 1040-NR; line 8, Form 1040(PR) or Form 1040-SS Refer to EC 364 in IRM 3.22.3.268.2.1 and IRM 3.22.3.269.5.2 3.22.3.19.36 (01-01-2023) Field 05FUE Fuel Tax Credit from Form 4136 Fuel Tax Credit from Form 4136 is transcribed in Field 05FUE from the following lines: TY21 and later - line 12, Schedule 3, Form 1040-NR TY20 - line 11, Schedule 3, Form 1040-NR TY19 - line 68, Form 1040-NR Refer to EC 356 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.37 (01-01-2023) Field 05RIC Form 2439 Regulated Investment Company Credit Form 2439 Regulated Investment Company Credit is transcribed in Field 05RIC from the following lines: TY21 and later - line 13a, Schedule 3, Form 1040-NR TY20 - line 12a, Schedule 3, Form 1040-NR TY19 - box a checked on line 69, Form 1040-NR Refer to EC 358 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.38 (01-01-2024) Field 05SFL Sick and Family Leave Credit Sick and Family Leave Credit is valid for TY 20 - TY 23 only, is an ERS only Field, and is transcribed in Field 05SFL from the following line: TY21 - TY22 - line 13b, Schedule 3, Form 1040-NR; line 11a, Form 1040(PR) TY20 - line 12b, Schedule 3, Form 1040-NR TY20 - ERS only - Write in on line 12, Form 1040(PR) or Form 1040-SS . Refer to EC 358 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.39 (01-03-2022) Field 05HCC Form 8885 Health Coverage Tax Credit (ERS Only) This field is for TY21 and prior and is an ERS only field transcribed in Field 05HCC from the following lines: TY21 - line 13c, Schedule 3, Form 1040-NR; line 10, Form 1040(PR). TY20 - line 12c, Schedule 3, Form 1040-NR; line 10, Form 1040(PR) or Form 1040-SS TY19 - box c checked on line 69, Form 1040-NR; line 10, Form 1040(PR) or Form 1040-SS Refer to EC 358 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.40 (11-03-2022) Field 05EYR Credit for Earlier Year Income Repayment Credit for Earlier Year Income Repayment is transcribed in Field 05EYR from the following lines: TY23 - line, 13b, Schedule 3; TY 22 - line 13d, Schedule 3, Form 1040-NR. 3.22.3.19.41 (01-01-2024) Field 05OTH Other Payment or Credit Amount This field is an ERS only field transcribed in Field 05OTH from the following lines: TY23 - line 13d and 13z, Schedule 3 Form 1040-NR TY22 - line 13f and 13z, Schedule 3, Form 1040-NR TY21 - line 13d, 13f and 13z , Schedule 3, Form 1040-NR TY20 - line 12d, Schedule 3, Form 1040-NR TY19 - box d checked on line 69, Form 1040-NR Refer to EC 358 and 366 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.42 (01-01-2024) Field 05TYP Other Payment Credit Type Code This field is an ERS only field transcribed in Field 05TYP from the following lines: TY21 and later - left of line 13z, Schedule 3, Form 1040-NR TY20 - line 12d, Schedule 3, Form 1040-NR TY19 - box d checked on line 69, Form 1040-NR Refer to EC 358 and 366 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. Note: Other Payment or Credit Type "S" is for credits from Form 1042-S on Form 1040. See instructions in EC 366 IRM 3.22.3.269.3.4 3.22.3.19.43 (11-08-2021) 05RCC Refundable Child Care Credit Refundable child care credit is for TY21 only and is transcribed in Field 05RCC from the following lines: TY 21 - line 13g, Schedule 3, Form 1040-NR Refer to EC 363 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.44 (01-01-2024) 05SL2 Sick and Family Leave Credits after 03-31-2021 Sick and Family Leave Credits after 03-31-2021 are ERS only fields and are transcribed in Field 05SL2 from the following lines: TY 21 and later - line 13h, Schedule 3, Form 1040-NR; line 11b, Form 1040-SS (sp) Field 05SFL is valid on TY22 - TY20 returns only. Refer to EC 358 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.19.45 (01-01-2023) Field 05OPR Total Other Payments and Refundable Credits Form 2439 and Other Credits is transcribed in Field 05OPR from the following lines: TY21 and later - line 14, Schedule 3, Form 1040-NR TY20 - line 12f, Schedule 3, Form 1040-NR TY19 - line 69, Form 1040-NR Refer to EC 358 and 366 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.20 (01-01-2015) Section 06 - Direct Deposit Information (EC 138 and 139) Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for screen displays, invalid conditions and correction procedures. This section is valid for all forms. 3.22.3.21 (01-01-2015) Section 07 - Data-Itemized Deductions Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 07 invalid conditions. 3.22.3.21.1 (11-08-2021) Error Record Format-Section 07 The following fields are displayed for Section 07 on Form 1040-NR : Form 1040-NR Field Title 0701A State and Local Income Tax 0702 Cash Contributions 0703 Other Contributions 0704 Carryover Contributions 0705 Total Contributions 0706 Total Casualty/Theft Loss 0707 Other Miscellaneous Deductions 0708 Total Itemized Deductions 0708V Total Itemized Deduction Verified 3.22.3.21.2 (11-27-2020) General Correction Procedures - Itemized Deductions When processing a dual-status return and Itemized Deductions are claimed on Schedule A Form 1040 that do not have a corresponding line on Schedule A of Form 1040-NR, enter the amount(s) in Field 0707. 3.22.3.21.2.1 (11-27-2020) Form 1040-NR - General Instructions for Itemized Deductions On Form 1040-NR, the taxpayer can itemize deductions against income reported as Effectively Connected Income only. TY19 and prior, on MeF Form 1040-NR, Schedule A is displayed as page 3 of the Form 1040-NR and isn’t listed as a separate schedule in the MeF Return Request and Display. Scroll through the pages of the Form 1040-NR to find Schedule A. 3.22.3.21.2.2 (01-01-2015) Form 1040 - General Instructions for Itemized Deductions with IRC 933 Taxpayers who exclude income from Puerto Rican sources under IRC 933 may only claim the portion of itemized deduction that is related to the income that is taxable on Form 1040. 3.22.3.21.2.3 (11-27-2020) Dual-status - General Instructions for Itemized Deductions Dual-status taxpayers are not entitled to the standard deduction. Deductions claimed on Schedule A, Form 1040 and statement attached to the Form 1040-NR controlling return will be combined with Form 1040-NR, Schedule A deductions. Those fields not applicable to Form 1040-NR should be combined and entered in Field 0707. If Form 1040 is the controlling return, Code & Edit edits CCC "Y" on the return to force the return to ERS for review. ERS enters "1" in Field 07IEI to assure that the standard deduction isn’t used. See the instructions in EC 260 at IRM 3.22.3.197.3. 3.22.3.21.3 (01-01-2019) Field 0701A - State and Local Income Taxes Deduction Form 1040-NR Field 0701A is transcribed from line 1a, Form 1040-NR, Schedule A. 3.22.3.21.4 (01-01-2015) Field 0702 - Cash Contributions Field 0702 is transcribed from line 2, Form 1040-NR, Schedule A. 3.22.3.21.5 (01-01-2015) Fields 0703/0704 - Other Contributions/Carry-Over Contributions Field 0703 is transcribed from line 03, Form 1040-NR, Schedule A for (Other than Cash) contributions. Field 0704 is transcribed from line 04, Form 1040-NR, Schedule A for (Carry-Over from Prior Year) contributions. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 3.22.3.21.6 (01-03-2017) Field 0705 - Total Contributions Field 0705 is transcribed from line 5, Form 1040-NR, Schedule A. 3.22.3.21.7 (01-01-2015) Field 0706 - Total Casualty/Theft Loss Field 0706 is transcribed from line 6, Form 1040-NR, Schedule A. Losses are allowable only for property located in the United States. A supporting Form 4684, Casualties and Thefts, is required. 3.22.3.21.8 (01-01-2019) Field 0707 - Other Itemized Deductions Field 0707 is transcribed from line 07, Schedule A, Form 1040-NR. This field is comparable to Field 0716 on Form 1040 Schedule A. Refer to EC 246. 3.22.3.21.9 (11-27-2020) Field 0708 - Total Itemized Deductions Form 1040-NR Field 0708 is located on line 8 of Schedule A, Form 1040-NR. Refer to EC 246 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.22 (01-01-2019) Section 08 - Schedule B Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Section 08 screen displays, invalid conditions and correction procedures for Form 1040. The section is not valid for Form 1040-NR. 3.22.3.23 (01-01-2024) Sections 09, 10 and 11 - Schedule C and Part IV Form 1040-SS/Form 1040-SS (sp) Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Sections 09,10 and 11 screen displays, invalid conditions and correction procedures for Form 1040, and Form 1040-NR. The fields for Sections 09/10/11 on Form 1040-SS and Form 1040-SS (sp) are displayed in the next section. Sections 09/10/11 are transcribed but math errors are not generated. Field errors may generate if invalid characters are transcribed. 3.22.3.23.1 (01-01-2024) Error Record Format - Sections 09, 10 and 11 Section 09 is displayed in the table below. Sections 10 and 11 have the same fields. Form 1040-SS (sp) and 1040-SS Field name Field Location 0901L Gross Receipts Line 1 0918 Office Expenses Line 18 0925 Utilities Expense Line 25 0926 Schedule C Wages Line 26 3.22.3.24 (01-01-2015) Section 12 - Schedule D Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Section 12 screen displays, invalid conditions and correction procedures for Schedule D, Capital Gains and Losses. The section is valid for Form 1040 and Form 1040-NR. 3.22.3.25 (01-01-2015) Section 13 - Schedule E Refer to IRM 3.12.2 Individual Master File Error Resolution General Instructions for Section 13 screen displays, invalid conditions and correction procedures for Schedule E, Supplemental Income and Loss. The section is valid for Form 1040 and Form 1040-NR. 3.22.3.26 (01-01-2015) Sections 14 and 15 - Schedule F Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Sections 14 and 15 screen displays, invalid conditions and correction procedures for Schedule F, Profit or Loss From Farming. The sections are valid for Form 1040 and Form 1040-NR. 3.22.3.27 (11-27-2020) Section 16 - Schedule R Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Section 16 screen displays, invalid conditions and correction procedures for Schedule R, Credit for the Elderly or the Disabled. The section is valid for Form 1040 only. 3.22.3.28 (01-01-2015) Section 17/18 - Schedule SE Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 17 and Section 18 screen displays, invalid conditions and correction procedures for Schedule SE, Self-Employment Tax. Note: Follow the correction procedures in IRM 3.22.3 before referring to IRM 3.12.2 Section 17 is Schedule SE for the primary taxpayer, and Section 18 is Schedule SE for the secondary taxpayer. Note: For the remainder of this text Schedule SE will be referred to as Section 17; however, all correction procedures will apply equally to Sections 17 and 18. 3.22.3.28.1 (01-01-2024) Field 1701A - Net Farm Profit/Loss This field is transcribed from line 1a and is the amount of farm income from Schedule F and/or farm partnership income (TY22 and prior from Part III, Form 1040(PR) and Form 1040-SS). ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. If blank, enter amount from Schedule F or from Part III, Form 1040(PR) and Form 1040-SS. 3.22.3.28.2 (01-01-2024) Field 1702 - Net Non-Farm Profit/Loss This field is transcribed from line 2 and is the amount of Schedule C income and/or other Non-Farm self-employment income (TY22 and prior from Part IV, Form 1040(PR) and Form 1040-SS). ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. If blank, enter amount from Schedule C or from Part IV, Form 1040(PR) and Form 1040-SS. 3.22.3.28.3 (01-01-2018) Field 17TE - Tentative Earnings This field is transcribed from line 3 and represents the taxpayer's total of line 1a, line 1b and line 2. If the taxpayer has entered "Exempt Notary" and an amount to the left of line 3 and has subtracted the notated amount from the total of line 1 and line 2 of Schedule SE, Code & Edit will "exclude" the "Exempt Notary" amount from the line 2 amount. 3.22.3.28.4 (01-01-2024) Field 17MCD - SE Method Code This code is edited by Code & Edit in the bottom center margin of Schedule SE and to the left of line 9, Form 1040(PR)/Form 1040-SS. This field will appear invalid if transcribed as other than "1" or "2" . Code "0" is also valid, but is computer-generated and cannot be transcribed. Compare the field on the screen with the entry on the return. Correct any editing or transcription error(s).For PY23 and forward following instructions found in IRM 3.12.2. For PY22 and prior If invalid check Lines 2 or 4 in Part VII and 4b in Part V of Form 1040(PR) and Form 1040-SS and code as follows: If And Then a) Line 4 has an amount, Line 4 is larger than line 2, Line 4b equals line 2 and line 4, Line 2 is blank or zero, Enter 1 in Field 17MCD. b) Line 2 or line 4 has an entry, All conditions in (a) for Code 1 are not met, Enter 2 in Field 17MCD. c) You can’t determine the code, Blank Field 17MCD to generate Code 0 (zero). 3.22.3.28.5 (01-01-2015) Field 17SEV - Self-Employment Tax Verified This field is for ERS input only. It is used when the computer’s computation is not reliable for self-employment tax. 3.22.3.29 (01-01-2015) Section 19 - Form 1116 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Section 19 screen displays, invalid conditions and correction procedures for Form 1116, Foreign Tax Credit. The section is valid for Form 1040 and Form 1040-NR. If Form 2555 is attached and valid make sure that the amount on line 1a, Form 1116 is different from the income being excluded on Form 2555 line 18 or 26. See IRM 3.22.3.214.2 3.22.3.30 (01-01-2015) Section 20 - Schedule J Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Section 20 screen displays, invalid conditions and correction procedures for Schedule J, Income Averaging for Farmers and Fishermen. The section is valid for Form 1040, and Form 1040-NR. 3.22.3.31 (01-01-2015) Section 21 - Form 2441 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Section 21 screen displays, invalid conditions and correction procedures for Form 2441, Child and Dependent Care Expenses. This section is valid for Form 1040, and Form 1040-NR. 3.22.3.32 (01-01-2015) Section 22 - Form 3800 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Section 22 screen displays, invalid conditions and correction procedures for Form 3800, General Business Credit. This section is valid for Form 1040 and Form 1040-NR. 3.22.3.33 (01-01-2024) Section 23 - Form 3800 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Section 23 screen display, invalid conditions and correction procedures for Form 3800, General Business Credit. Section 23 is valid for Form 1040 and Form 1040-NR. 3.22.3.34 (11-08-2021) Sections 24 and 25 - Form 4137 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Sections 24 and 25 screen displays, invalid conditions and correction procedures for Form 4137, Social Security and Medicare Tax on Unreported Tip Income. Section 24 is valid for Form 1040, Form 1040-NR. Section 25 is valid for Form 1040. 3.22.3.35 (01-01-2015) Section 26 - Form 4684 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Section 26 screen displays, invalid conditions and correction procedures for Form 4684, Casualties and Thefts. This section is valid for Form 1040 and Form 1040-NR. 3.22.3.36 (01-01-2015) Section 27 - Form 4797 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Section 27 screen displays, invalid conditions and correction procedures for Form 4797, Sale of Business Property. This section is valid for Form 1040 and Form 1040-NR. 3.22.3.37 (01-01-2015) Section 28 - Form 4972 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Section 28 screen displays, invalid conditions and correction procedures for Form 4972, Tax on Lump-Sum Distributions. This section is valid for Form 1040 and Form 1040-NR. 3.22.3.38 (01-01-2015) Sections 29 and 30 - Form 5329 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Sections 29 and 30 screen displays, invalid conditions and correction procedures for Form 5329, Additional Taxes on Qualified Plans. Section 29 is valid for Form 1040 and Form 1040-NR. Section 30 is valid for Form 1040. 3.22.3.39 (11-27-2020) Section 31 - Form 6198 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Section 31 screen displays, invalid conditions and correction procedures for Form 6198, At-Risk Limitations. This section is valid for Form 1040 and Form 1040-NR. Note: Form 6198 is a valid form with Form 1040-NR, and it will be transcribed by ISRP for all tax years when it is attached to paper return whereas on MeF, Section 63 will only exist on TY20 and later returns. For TY19 and prior returns, search Form 1040-NR for an attached Form 6198 if EC 070, EC 072, EC 073, EC 202, EC 206, or EC 208 generate. If found GTSEC 31 to enter amounts in the available fields. 3.22.3.40 (01-01-2015) Section 32 - Form 6251 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Section 32 screen displays, invalid conditions and correction procedures for Form 6251, Alternative Minimum Tax. This section is valid for Form 1040 and Form 1040-NR. 3.22.3.41 (01-01-2015) Section 33 - Form 8615 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Section 33 screen displays, invalid conditions and correction procedures for Form 8615, Tax for Certain Children Who Have Unearned Income. This section is valid for Form 1040 and Form 1040-NR. 3.22.3.42 (01-01-2015) Section 34 and Section 35 - Form 2555 Sections 34 and 35 are Form 2555, Foreign Earned Income for the primary (Section 34) and secondary (Section 35) taxpayer. Additional correction procedures are found in IRM 3.22.3.100 (EC 024), IRM 3.22.3.148 (EC 148), IRM 3.22.3.149 (EC 150), IRM 3.22.3.150 (EC 152), IRM 3.22.3.151 (EC 154), IRM 3.22.3.171 (EC 216), IRM 3.22.3.173 (EC 218), IRM 3.22.3.180.2.1 (EC 229), IRM 3.22.3.181 (EC 230), and IRM 3.22.3.251 (EC 334). 3.22.3.42.1 (11-03-2022) General Requirements for Form 2555 (Section 34 and 35) A U.S. citizen or resident alien who has earned income from a foreign country or countries may have income that is deductible or excludable from U.S. income tax on Form 1040 if they have a tax home in a foreign country or countries and is: A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period (regardless of physical presence) which includes an entire taxable year and part or all of the tax year of the return or A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty with an applicable nondiscrimination clause and who is a bona fide resident of a foreign country for an uninterrupted period that includes an entire taxable year and part or all of the tax year of the return or A U.S. citizen or resident alien who has been physically present in a foreign country or countries for at least 330 days during any period of 12 consecutive months. Part of the 12-month period must fall in the tax period of the return. Some taxpayers may exclude income that they received for services performed in the year prior to the year of the tax return. This income is included on line 45 of Form 2555 with a notation of "Exclusion of Prior Year Income" , or similar. If the taxpayer is only excluding prior year income then the bona fide residency and physical presence test dates on the Form 2555 may not include a part of the tax year of the return. If a taxpayer left certain countries within certain dates without meeting the time requirement on Form 2555 , the requirement can be waived, see IRM 3.22.3.173.2.3.1. One Form 2555 must be provided for each taxpayer claiming the exclusion. If pages 1 or 2 are missing, SSPND with Action Code 215 to correspond for missing pages using Form 13900 for Letter 4087C, and selecting paragraph O for Form 2555. If the primary and secondary taxpayers have combined foreign earned income on one Form 2555 then SSPND 215 and correspond using Form 13900 and selecting paragraph P. If the taxpayers are a missionary team and both are included on one Form 2555 then don’t correspond. Divide the income equally between the two and adjust the available fields. GTSEC 34 (primary) or GTSEC 35 (secondary) and enter the spouse’s information and portion in available fields. If multiple Form 2555 are attached for one taxpayer then GTSEC 34 or 35 and enter the combined information in all available fields. 3.22.3.42.2 (01-01-2015) Field and Money Amounts All fields are positive. The money amounts are entered in DOLLARS ONLY. The first Form 2555 is Section 34 for the primary taxpayer and the second Form 2555 is Section 35 for the secondary taxpayer. Note: For the remainder of this text Form 2555 will be referred to as Section 34; however, all correction procedures will apply equally to Sections 34 and 35. 3.22.3.42.3 (01-07-2013) Error Record Format - Section 34/35 Section 34 and Section 35 consists of the following fields: Form 2555 Field Title 34POD Post of Duty Code 34BD1 Beginning Date Bona Fide Residence 34ED1 Ending Date Bona Fide Residence 34DIN Declaration 3414R Number of Days in United States - Bona Fide Residence 34BD2 Beginning Date Physical Presence 34ED2 Ending Date Physical Presence 3418R Number of Days in United States - Physical Presence 3419 Wages 3422G Total Allowances 3425 Meals and Lodging 3433 Housing Expenses 3436 Housing Exclusion 3442 Foreign Earned Income Exclusion 3445 Total Foreign Income/Housing Exclusion 3450 Housing Deduction 3.22.3.42.4 (01-01-2015) Correction Procedures The following describes correction procedures for Section 34 and Section 35. 3.22.3.42.5 (01-01-2023) Field 34POD Post of Duty Code Code & Edit will edit this code to the top center margin and it will be present on all Form 2555. See IRM 3.22.3.101.3 EC 025. 3.22.3.42.6 (01-01-2019) Field 34BD1 Beginning Date Bona Fide Residence This field is transcribed in YYYYMM format from Line 10, Part II (Form 2555). See EC 148, EC 150 and EC 152 correction procedures. Returns being filed electronically with Form 2555 may have missing or invalid dates in the four fields associated with that information, 34BD1, 34ED1, 34BD2, and 34ED2. Due to a programming problem the associated error codes, 148, 150 and 152 are not generating. As such, all Form 1040 returns that have a Form 2555 attached must have Section 34/35 examined to determine if date information is entered. If there are no dates or if there are invalid dates review the tax return. If valid dates are found enter in appropriate fields. If valid dates are not available, DLSEC 34/35 and assign the appropriate TPNC when EC 218 generates. 3.22.3.42.7 (01-01-2023) Field 34ED1 Ending Date Bona Fide Residence This field is transcribed in YYYYMM format from Line 10, Part II (Form 2555). The ending date must be at least 365 days later than the beginning date and part of these days must fall within the tax year of the return. See EC 148, EC 150 and EC 152 for correction procedures. Caution: If the taxpayer enters an ending date beyond the received date of the return, enter the received date as the ending date. Returns being filed electronically with Form 2555 may have missing or invalid dates in the 4 fields associated with that information, 34BD1, 34ED1, 34BD2, and 34ED2. Due to a programming problem, the associated error codes, 148, 150 and 152 are not generating. As such, all Form 1040 returns that have a Form 2555 attached must have Section 34/35 examined to determine if date information is entered. If there are no dates or if there are invalid dates research EUP. If valid dates are found enter in appropriate fields. If valid dates are not available DLSEC 34/35 and assign the appropriate TPNC when EC 218 generates. 3.22.3.42.8 (01-01-2015) Field 34DIN Declaration Indicator This field is transcribed from the right margin of line 13b, Part II. Field 34DIN can be blank or "4" . Code & Edit will edit "4" if any of the following boxes are checked: Line 13(a) - "YES" box checked Line 13(b) - "NO" box checked Line 15(c) - "YES" box checked Line 15(d) - "YES" box checked If the above boxes are not checked delete the entry. Caution: An entry in Field 34DIN is often a transcription error, where Integrated Submission and Remittance Processing System (ISRP) should have picked up Field 3414R. GTSEC 34 and enter in Field 3414R if necessary. 3.22.3.42.9 (01-01-2023) Field 3414R Number of Days in United States on Business (Bona Fide Residence) Total number of days is edited by Code & Edit and transcribed from the margin to the right of line 14 (Form 2555). Valid numbers are 001 through 366. If invalid, verify the taxpayer's entry and overlay the screen display with the correct number (Field 3414/3514 must have 3 positions). 3.22.3.42.10 (01-01-2023) Field 34BD2 Beginning Date Physical Presence This field is transcribed in YYYYMM format from Line 16, Part III (Form 2555). When qualifying the taxpayer for physical presence test, the taxpayer must be physically present between 330 - 364 days. The qualifying period does not have to be a calendar year, it may cover parts of two years, however, part of the qualifying period must be in the current year of the return. Refer to EC 148, EC 150 and EC 152 for correction procedures. 3.22.3.42.11 (01-01-2023) Field 34ED2 Ending Date Physical Presence This field is transcribed in YYYYMM format from Line 16, Part III (Form 2555). The ending date must be at least 330 days later than the beginning date and part of these days must fall within the tax year of the return. EC 148, EC 150 and EC 152 for correction procedures. Note: Part of the 12-month period must fall in the tax period of the return. 3.22.3.42.12 (01-01-2020) Field 3418R Number of Days in United States on Business (Physical Presence) The number of days is edited by Code & Edit and transcribed from the margin to the right of line 18. Valid numbers are 001 through 366. If invalid, verify the taxpayer's entry and overlay the screen display with the correct number. 3.22.3.42.13 (01-01-2023) Field 3419 Form 2555/Form 2555-EZ Wages This amount is transcribed from Line 19 (Form 2555). 3.22.3.42.14 (01-01-2015) Field 3422G Total Allowance This amount is transcribed from line 22G. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. 3.22.3.42.15 (01-01-2015) Field 3425 Meals and Lodging This amount is transcribed from line 25. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. 3.22.3.42.16 (01-01-2015) Field 3433 Housing Expenses This amount is transcribed from line 33. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. If blank, enter the smaller of line 28 or 36, Form 2555. 3.22.3.42.17 (11-27-2020) Field 3436 Housing Exclusion This amount is transcribed from line 36, Form 2555 Qualified individuals may separately elect to claim the housing exclusion or the housing deduction, in addition to the foreign earned income exclusion. The housing exclusion applies only to amounts considered paid for with employer-provided amounts. The housing deduction applies only to amounts paid for with self-employment earnings. The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) made the following changes to Section 911 which are effective for tax periods beginning on or after January 1, 2006. 3.22.3.42.18 (01-01-2023) Field 3442 Foreign Earned Income Exclusion This amount is transcribed from Line 42 (Form 2555). If Field 3442 or 3542 is greater than the maximum exclusion amount, Error Code 154 will generate. If the sum of Fields 3442 or 3542 is greater than the sum of Wages, Schedule C Profit Loss Computer (Section 09/10/11), Nonpassive Income Partnership/S Corporation Amount (Field 1329K), Nonpassive Loss Partnership/S Corporation Amount (Field 1329I), and Schedule F Profit Loss Computer (Section 14/15), Error Code 156 will generate. 3.22.3.42.19 (01-01-2023) Field 3445 Housing Exclusion This amount is transcribed from Line 45 (Form 2555). 3.22.3.42.20 (01-01-2019) Field 3450 Housing Deduction This amount is transcribed from Form 2555, line 50. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. If blank, compute amount by adding lines 48 and 49 together and enter in Field 3450. Refer to IRM 3.22.3.180.2.1, Correction Procedures EC 229. Note: The taxpayer may claim a one-year carryover Housing Deduction. 3.22.3.43 (01-01-2015) Section 37 - Form 4835 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 37 screen displays, invalid conditions and correction procedures for Form 4835, Farm Rental Income and Expenses. This section is valid for Form 1040 and Form 1040-NR 3.22.3.44 (01-01-2015) Section 38 - Form 8839 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 38 screen displays, invalid conditions and correction procedures for Form 8839, Qualified Adoption Expenses. This section is valid for Form 1040 and Form 1040-NR 3.22.3.45 (01-01-2015) Section 39 - Form 8853 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 39 screen displays, invalid conditions and correction procedures for Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. This section is valid for Form 1040 and Form 1040-NR 3.22.3.46 (01-01-2015) Sections 40, 41 and 42 - Form 8814 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Sections 40, 41 and 42 screen displays, invalid conditions and correction procedures for Form 8814, Parents’ Election to Report Child’s Interest and Dividends. These sections are valid for Form 1040 and Form 1040-NR. 3.22.3.47 (11-27-2020) Section 43 - Schedule EIC Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 43 screen displays, invalid conditions and correction procedures for Schedule EIC, Earned Income Credit. This section is valid for Form 1040. 3.22.3.48 (01-01-2024) Sections 44 and 45 - Schedule H Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Sections 44 and 45 screen displays, invalid conditions and correction procedures for Schedule H, Household Employment Taxes. Section 44 is valid for Form 1040, Form 1040-NR, Form 1040-SS (sp) and Form 1040-SS. Section 45 is valid for Form 1040, Form 1040-SS (sp) and Form 1040-SS 3.22.3.49 (11-27-2020) Section 46 - Schedule NEC Section 46 contains Data from Schedule NEC, Tax on Income Not Effectively Connected With a U.S. Trade or Business, Form 1040-NR. With the redesign of Form 1040-NR for TY20, Schedule NEC is removed from Form 1040-NR and will be filed as a separate schedule. TY19 and prior, Schedule NEC was page 4, part of Form 1040-NR. 3.22.3.49.1 (11-27-2020) General Information The taxpayer uses Schedule NEC, of Form 1040-NR, to compute tax on Income not effectively connected with a U.S. trade or business. Types Schedule NEC income include: Dividends paid by U.S. or foreign corporations. Dividend equivalent payments received with respect to IRC 871(m) transactions. Interest paid by foreign corporation, mortgage or other types. Industrial royalties (patent, trademarks, etc.). Motion pictures or TV copyright royalties. Other royalties (copyrights, recording, publishing, etc.) Real property income and natural resource royalties. Pensions and annuities. Social security benefits. Gains (include capital gain from line 18 below). Gambling winnings The tax on income not effectively connected with a U.S. trade or business is entered on line 15, Schedule NEC and transferred to page 2, line 23a, of Form 1040-NR (TY19, line 54, of Form 1040-NR). 3.22.3.49.2 (01-01-2023) Error Record Format Section 46 Section 46 contains the following Fields Form 1040-NR Field Title 4613A 10 percent Tax Rate Total Income 4613B 15 percent Tax Rate Total Income 4613C 30 percent Tax Rate Total Income 46TR1 Tax Rate Income Taxpayer Percentage 1 46TR2 Tax Rate Income Taxpayer Percentage 2 46131 XX percent Tax Rate Total Income 46132 YY percent Tax Rate Total Income 46OM1 Effectively Connected Income First Year Election 46OM2 Effectively Connected Income Continuing Election Indicator 3.22.3.49.3 (04-07-2016) Field 46TR1 Tax Rate Income Taxpayer Percentage This field is transcribed from Column (d) 1 as a percentage using three digits. Caution: If there are only two digits, the transcriber will enter a zero in the first position; only one digit, the transcriber will enter zeroes in the first two positions. The taxpayer is allowed to enter a specified percentage under the appropriate tax rate. Code & Edit should always edit this field using three digits: If the taxpayer enters Then Code & Edit will Edit 9 percent 090 20 percent 200 27.5 percent 275 See EC 311 at IRM 3.22.3.237.3 for correction procedures. 3.22.3.49.4 (04-07-2016) Field 46TR2 Tax Rate Income Taxpayer Percentage This field is transcribed from Column (d) 2 as a percentage using three digits. Caution: If there are only two digits, the transcriber will enter a zero in the first position; only one digit, the transcriber will enter zeroes in the first two positions. The taxpayer is allowed to enter a specified percentage under the appropriate tax rate. Code & Edit should always edit this field using three digits: If the taxpayer enters Then Code & Edit will edit 9 percent 090 20 percent 200 27.5 percent 275 See EC 311 at IRM 3.22.3.237.3 for correction procedures. 3.22.3.49.5 (11-27-2020) Field 4613A - 10 Percent Tax Rate Total Income This field is transcribed from line 13, Column (a). 3.22.3.49.6 (11-27-2020) Field 4613B 15 Percent Tax Rate Total Income This field is transcribed from line 13, Column (b). 3.22.3.49.7 (11-27-2020) Field 4613C Percent Tax Rate Total Income This field is transcribed from line 13, Column (c). 3.22.3.49.8 (11-27-2020) Field 46131 XX Percent Tax Rate Total Income This field is transcribed from line 13, Column (d) 1. 3.22.3.49.9 (11-27-2020) Field 46132 YY Percent Tax Rate Total Income This field is transcribed from line 13, Column (d) 2. 3.22.3.49.10 (11-03-2022) Field 46OM1 Effectively Connected Income First Year Election Indicator This field is transcribed from line M1, Schedule OI, Form 1040-NR. This field is 1 position in length and valid values are 0 (box is not checked) and 1 (box is checked). 3.22.3.49.11 (11-03-2022) Field 46OM2 Effectively Connected Income Continuing Election Indicator This field is transcribed from line M2, Schedule OI, Form 1040-NR. This field is 1 position in length and valid values are 0 (box is not checked) and 1 (box is checked). 3.22.3.50 (01-01-2024) Section 47 - Schedule 8812 and Part II, Form 1040-SS (sp)/SS, Refundable Child Tax Credit Schedule 8812, Credits for Qualifying Children and Other Dependents, is used on Form 1040-NR to claim refundable Child Tax Credit or additional Child Tax Credit. For TY 2012 through TY 2017, taxpayers used Part I of Schedule 8812 to indicate whether their children met the physical presence test for this credit. In PY21, the ERS only fields for the physical presence test are deleted. Examiners will manually check for the physical presence test when EC 290 or 344 displays. Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, invalid conditions and correction procedures for the fields on Schedule 8812. Part II, Form 1040-SS/SS(SP) is used to claim the Additional Child Tax Credit (Refundable Child Tax Credit for TY21)by bona fide residents of Puerto Rico. Section 47 has two transcribed fields for Part II. 3.22.3.50.1 (01-01-2024) Error Record Format - Section 47 Section 47 contains the following fields. Form 1040-NR Form 1040-SS (sp)/SS Field Title Field Location on Form 47ABD Schedule 8812 Principle Abode Indicator Part 1-A, Line 13 (TY21 only) 47OEI Additional Child Tax Credit Opt out Election Indicator Checkbox on line 15 47EI Schedule 8812 Earned Income Line 18a 47NCP Non-Taxable Combat Pay Line 18b Schedule 8812 47PRI Income From Puerto Rico Amount Part II, line 3, Form 1040-SS/SS (sp) 47SSM 47SSM(TY20 and prior and TY22 and later) Total Social Security and Medicare Withheld Amount Line 21, Schedule 8812 Part II, Line 13f (PY22 and prior Part II, line 2,) Form 1040-SS/PR 3.22.3.50.2 (01-01-2024) Additional Child Tax Credit/Refundable Child Tax Credit- Puerto Rico Taxpayers filing Form 1040 and Form 1040-NR do NOT need to have 3 qualifying children regardless of the address shown on their return. If it appears the taxpayer is a bona fide resident of Puerto Rico≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ see IRM 3.22.3.9.5.2 for correction procedures. For TY20 and prior ONLY taxpayers filing Form 1040-SS or Form 1040-PR must have 3 or more qualifying children to qualify for Additional Child Tax Credit. For TY 21 taxpayers filing Form 1040-SS or Form 1040(PR) can claim refundable Child Tax Credit with 1 or more qualifying children. For TY 22 and later taxpayers filing Form 1040-SS or Form 1040-SS (sp) can claim additional Child Tax Credit with 1 or more qualifying children. 3.22.3.50.3 (01-01-2024) Field 47PRI - Puerto Rico Sourced Income (Form 1040-SS (sp)/Form 1040-SS Only) This field is transcribed from Part II, line 3 (TY22 and prior - Part II, line 1), on Form 1040-SS and Form 1040-SS (sp). It reports income derived from sources within Puerto Rico, which for Form 1040-SS and Form 1040-SS (sp) filers, is their modified adjusted gross income. For TY20 and prior Field 47PRI is used to phase out the taxpayer’s Additional Child Tax Credit (ACTC). Instructions for this field are in EC 344 at IRM 3.22.3.256.2. For TY21 Part II, line 1 on Form 1040-SS and Form 1040(PR) is the taxpayers Modified adjusted gross income and is used for the refundable Child Tax Credit. Instructions for this field are in EC 345 at 3.22.3.50.4 (01-01-2024) Field 47SSM - Total Social Security and Medicare Tax Withheld (Form 1040-SS (sp)/Form 1040-SS Only) This field is transcribed from Part II, line 13f (TY22 and prior - Part II, line 2). This line is reserved for TY21 on Form 1040(PR) and therefore not used for TY21. 3.22.3.51 (01-01-2016) Sections 48 and 49 - Form 8606 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Sections 48 and 49 screen displays, invalid conditions and correction procedures for Form 8606, Nondeductible IRAs. Section 48 is valid for Form 1040 and Form 1040-NR. Section 49 is valid for Form 1040. 3.22.3.52 (01-01-2024) Section 50 - Form 8863 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 50 screen displays, invalid conditions and correction procedures for Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits). This section is not valid for Form 1040-NR. A nonresident alien is not eligible for education credit. See Form 1040-NR instructions at IRM 3.22.3.230.2, Error Code 299 - Form 1040-NR. This section is not valid for Form 1040-SS (sp) or Form 1040-SS. See instructions at IRM 3.22.3.269.5.1, EC 366 - Total Payments 3.22.3.53 (01-01-2015) Section 51 - Form 4952 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 51 screen displays, invalid conditions and correction procedures for Form 4952, Investment Interest Expense Deduction. This section is valid for Form 1040 and Form 1040-NR. 3.22.3.54 (01-01-2015) Sections 52 and 53 - Form 8889 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Sections 52 and 53 screen displays, invalid conditions and correction procedures for Form 8889, Health Savings Account. Section 52 is valid for Form 1040 and Form 1040-NR. Section 53 is valid for Form 1040. 3.22.3.55 (01-01-2015) Section 54 - Form 8880 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 54 screen displays, invalid conditions and correction procedures for Form 8880, Credit for Qualified Retirement Savings Contributions. This section is valid for Form 1040 and Form 1040-NR. 3.22.3.56 (01-01-2020) Section 55 - Form 8995/Form 8995-A Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 55 screen displays, invalid conditions and correction procedures for Form 8995, Qualified Business Income Deduction Simplified Computation and Form 8995-A, Qualified Business Income Deduction. This section is valid for Form 1040 and Form 1040-NR 3.22.3.57 (01-01-2015) Section 56 - Form 8888 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 56 screen displays, invalid conditions and correction procedures for Form 8888, Allocation of Refund. This section is valid for Form 1040 and Form 1040-NR. 3.22.3.58 (02-04-2020) Section 57 - Form 8978 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 57 screen displays, invalid conditions and correction procedures for Form 8978, Partner’s Additional Reporting Year Tax. This section is valid for Form 1040 and Form 1040-NR 3.22.3.59 (01-01-2015) Section 58- Form 5405 First Time Home Buyer Credit/Repayment Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 58 screen displays, invalid conditions and correction procedures for Form 5405, First Time Home Buyer Credit/Repayment. This section is valid for Form 1040 and Form 1040-NR. 3.22.3.60 (01-01-2024) Sections 61 and 62 - Form 8919 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for sections 61 and 62 screen displays, invalid conditions and correction procedures for Form 8919, Uncollected Social Security and Medicare Tax on Wages. Section 61 is valid for Form 1040, Form 1040-NR, Form 1040-SS (sp), and Form 1040-SS. Section 62 is valid for Form 1040 and Form 1040-SS (sp) and Form 1040-SS 3.22.3.61 (11-27-2020) Section 63 - Form 8958 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for section 63 screen displays, invalid conditions and correction procedures for Form 8958, Allocation of Tax Amounts Between Certain Individuals in Community Property States 3.22.3.62 (01-03-2022) Section 64 - Reserved Form 461, Limitation on Business Losses, is used to calculate the limitation on trade or business losses as defined by IRC 461(1). Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for section 64 screen displays, invalid conditions and correction procedures for Form 461. 3.22.3.63 (07-17-2015) Section 65 and 66 - Form 8941 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 65 and Section 66 screen displays, invalid conditions and correction procedures for Form 8941, Credit for Small Employer Health Insurance Premiums. Section 65 is valid for Form 1040 and Form 1040-NR. Section 66 is valid for Form 1040 only. 3.22.3.64 (01-01-2020) Section 67 - Form 6252 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 67 screen displays, invalid conditions and correction procedures for Form 6252, Installment Sale Income. This section is valid for Form 1040 and Form 1040-NR 3.22.3.65 (01-01-2015) Section 68 - Form 8910 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Section 68 screen displays, invalid conditions and correction procedures for Form 8910, Alternative Motor Vehicle Credit. This section is valid for Form 1040 and Form 1040-NR. 3.22.3.66 (01-01-2024) Section 69 - Form 8936 and Form 8936 Schedule A Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 69 screen displays, invalid conditions and correction procedures for Form 8936, New Clean Vehicle Credit Amount and Previously Owned Clean Vehicles Credit Amount. This section is valid for Form 1040 and Form 1040-NR. 3.22.3.67 (01-01-2024) Section 70 - Form 8867 Form 8867, Paid Preparer’s Due Diligence Checklist, is transcribed as Section 70 for Form 1040-NR, Form 1040-SS (sp), and Form 1040-SS. Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 70 invalid conditions and correction procedures. This section is valid only for TY 2016 and later for Form 1040-NR, Form 1040-SS (sp), and Form 1040-SS, and the questions related to Head of Household, Earned Income Credit, and American Opportunity Credit don’t apply to these forms. 3.22.3.67.1 (01-01-2024) Error Record Format, Section 70 Section 70 consists of the following fields: Form 1040-NR Form 1040-SS (sp) and 1040-SS Field Name Field Location on Form 8867 70COD 70COD CTC ACTC ODC Claimed Indicator Checkbox 7015 7015 Form 8867 Answers Certification Code line 15 3.22.3.68 (01-01-2024) Section 71 - Form 8959 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, Section 71, for screen displays, invalid conditions and correction procedures for Form 8959, Additional Medicare Tax. This section is valid for Form 1040, Form 1040-NR, Form 1040-SS (sp), and Form 1040-SS. 3.22.3.68.1 (01-01-2024) Error Record Format - Section 71 Section 71 consists of the following fields: Form 1040-NR Form 1040-SS (sp) and Form-SS Field Title 7101 7101 Medicare Wages 7102 7102 Unreported Tips Form 4137 7103 7103 Wages Form 8919 7107 7107 Additional Medicare Tax on Wages 7108 7108 Self-Employment Income 7113 7113 Additional Medicare Tax on SE Income 7114 7114 Railroad Retirement Compensation 7117 7117 Tier I Additional Medicare Tax 7118 7118 Form 8959 Additional Medicare Tax Taxpayer Amount 7118V 7118V Additional Medicare Tax Verified 7119 7119 Medicare tax Withheld 7123 7123 Tier 1 Additional Medicare Tax Box 14 Form W-2 7124 7124 Total Additional Medicare Tax Withholding 3.22.3.69 (01-01-2016) Section 72 - Form 8960 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, Section 72, for screen displays, invalid conditions and correction procedures for Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts. This section is valid for Form 1040 and Form 1040-NR. 3.22.3.69.1 (01-01-2015) Error Record Format - Section 72 Section 72 consists of the following fields: Form 1040-NR Field Title 72IND Investment Income Checkbox Indicator 7201 Taxable Interest 7202 Ordinary Dividends 7203 Annuities 7204A Rents Royalties Partnerships 7204B Adjustment for Net Income or Loss 7205A Net Gains from Disposition of Property 7205B Net Gain or Loss 7205C Adjustment from Disposition of Partnership Interest S Corp 7206 Changes to CFCs and PFICs 7207 Other Modifications to Investment Income 7208 Total Investment Income 7209A Investment Interest Expense 7209B State Income Tax 7209C Miscellaneous Investment Expenses 7210 Additional Modifications 7211 Total Deductions and Modifications 7213 Modified Adjusted Gross Income 7216 Taxable Investment Income 7217 Net Investment Income Tax 7217V Net Investment Income Tax Verified (ERS only) 3.22.3.70 (01-01-2016) Section 73 - Form 8962, Page 1 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, Section 73, for screen display, invalid conditions and correction procedures for Form 8962, Premium Tax Credit. Section 73 represents page 1 of Form 8962. 3.22.3.70.1 (01-01-2016) Error Record Format - Section 73 Section 73 consists of the following fields: Form 1040-NR Field Title 73MFS Married Filing Separate PTC Exception Checkbox Indicator 7302B Dependents Modified AGI 73SOR Federal Poverty Level State of Residence Checkbox 7308B Monthly Contribution for Health Care 7311A Annual Premium Amount 7311B Annual Premium of SLCSP Amount 7311F Annual Advance PTC 7312A January Monthly Premium Amount 7312B January Monthly Premium of SLCSP Amount 7312F January Monthly Advance PTC 7313A February Monthly Premium Amount 7313B February Monthly Premium of SLCSP Amount 7313F February Monthly Advance PTC 7314A March Monthly Premium Amount 7314B March Monthly Premium of SLCSP Amount 7314F March Monthly Advance PTC 7315A April Monthly Premium Amount 7315B April Monthly Premium of SLCSP Amount 7315F April Monthly Advance PTC 7316A May Monthly Premium Amount 7316B May Monthly Premium of SLCSP Amount 7316F May Monthly Advance PTC 7317A June Monthly Premium Amount 7317B June Monthly Premium of SLCSP Amount 7317F June Monthly Advance PTC 7318A July Monthly Premium Amount 7318B July Monthly Premium of SLCSP Amount 7318F July Monthly Advance PTC 7319A August Monthly Premium Amount 7319B August Monthly Premium of SLCSP Amount 7319F August Monthly Advance PTC 7320A September Monthly Premium Amount 7320B September Monthly Premium of SLCSP Amount 7320F September Monthly Advance PTC 7321A October Monthly Premium Amount 7321B October Monthly Premium of SLCSP Amount 7321F October Monthly Advance PTC 7322A November Monthly Premium Amount 7322B November Monthly Premium of SLCSP Amount 7322F November Monthly Advance PTC 7323A December Monthly Premium Amount 7323B December Monthly Premium of SLCSP Amount 7323F December Monthly Advance PTC 7324 Total Premium Tax Credit 7325 Advance Premium Tax Credit 3.22.3.71 (01-01-2015) Section 74 - Form 8962, Page 2 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, Section 74, for screen display, invalid conditions, and correction procedures for Form 8962, Premium Tax Credit. Section 74 represents page 2 of Form 8962 3.22.3.71.1 (01-02-2015) Error Record Format - Section 74 Section 74 consists of the following fields: Form 1040-NR Field Title 7430A Policy Number 1 7430B SSN of Filer Sharing Allocation 1 7430C Allocation Start Month 1 7430D Allocation Stop Month 1 7430E Premium Percentage 1 7430F SLCSP Percentage 1 7430G Advance PTC Percentage 1 7431A Policy Number 2 7431B SSN of Filer Sharing Allocation 2 7431C Allocation Start Month 2 7431D Allocation Stop Month 2 7431E Premium Percentage 2 7431F SLCSP Percentage 2 7431G Advance PTC Percentage 2 7432A Policy Number 3 7432B SSN of Filer Sharing Allocation 3 7432C Allocation Start Month 3 7432D Allocation Stop Month 3 7432E Premium Percentage 3 7432F SLCSP Percentage 3 7432G Advance PTC Percentage 3 7433A Policy Number 4 7433B SSN of Filer Sharing Allocation 4 7433C Allocation Start Month 4 7433D Allocation Stop Month 4 7433E Premium Percentage 4 7433F SLCSP Percentage 4 7433G Advance PTC Percentage 4 7435A Primary Alternative Family Size 7435B Primary Monthly Contribution 7435C Primary Alternative Start Month 7435D Primary Alternative Stop Month 7436A Spouse Alternative Family Size 7436B Spouse Monthly Contribution 7436C Spouse Alternative Start Month 7436D Spouse Alternative Stop Month 3.22.3.72 (01-01-2024) Section 75- Form 5695 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Section 75 screen displays, invalid conditions and correction procedures for Form 5695, Residential Energy Credit. This section is valid for Form 1040 and Form 1040-NR. 3.22.3.73 (01-01-2020) Section 76 - Form 965-A Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Section 76 screen displays, invalid conditions and correction procedures for Form 965-A, Individual Report of Net 965 Tax Liability. This section is valid for Form 1040 and Form 1040-NR 3.22.3.74 (11-27-2020) Section 77 - Schedule LEP or Form 9000 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, Section 77, for screen display, invalid conditions, and correction procedures. 3.22.3.75 (11-08-2021) Section 78 Form 8997 Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, Section 78, for screen display, invalid conditions, and correction procedures. 3.22.3.76 (01-01-2024) Section 79- Form 4136 Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions for Section 79 screen display, invalid conditions and correction procedures for Form 4136, Credit for Federal Tax Paid on Fuels. Section 79 is valid for Form 1040 and Form 1040-NR. 3.22.3.77 (01-01-2020) Section 94 - ERS Only Verified Fields This Section is to store all ERS only verified fields. In tax year 2019, processing year 2020 all ERS only verified fields from Section 01, 02, 03, 04 and 05 are moved to Section 94. Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, Section 94, for screen display, invalid conditions, and correction procedures. 3.22.3.77.1 (01-01-2024) Error Record Format - Section 94 Section 94 consists of the following fields: Form 1040-NR Form 1040-SS (sp)/Form 1040-SS Field Title 94EXV Exemption Code Verified 94PAV 94PAV Primary Age Verified 94SAV 94SAV Secondary Age Verified 946EV 946EV Child Tax Credit Under Six Total Eligible Verified Number 94CEV 94CEV Child Tax Credit Total Eligible Verified 94DEV Other Dependent Credit Total Eligible Verified 94UTV 94UTV Unallowable Tax Verified 94ESV Excess Social Security Tax Withheld Verified Amount 94SEV Deduction for SE Tax Verified 94IRV IRA Deduction Verified 94SLV Student Loan Interest Deduction Verified 94QBV Qualified Business Income Deduction Verified 94INV Taxable Income Verified 94TTV Tentative Tax Verified 94ARV Advance Premium Tax Credit Repayment Verified 94RTV Retirement Savings Contribution Verified 94CVV Clean Vehicle Credit Verified Amount 94POV Previously Owned Clean Vehicles Credit Amount 94CDV Child Tax and Other Dependent Credit Verified 94NRV Total Statutory Credits Verified 94TXV 94TXV Total Tax Verified 94AIV 94AIV Additional Child Tax Credit Earned Income Verified Amount 94ACV 94ACV Additional Child Tax Credit Verified 94SLV Student Loan Interest Deduction Verified 94PTV Premium Tax Credit Verified 94RCV Refundable Child Care Credit Verified 94OPV Total Other Payments and Refundable Credits Verified Amount 94P2V New Clean Vehicles Business Credit Verified Amount 94P5V Commercial Clean Vehicle Credit Verified Amount 3.22.3.77.2 (01-01-2020) Field 94EXV Exemption Verified TY 2018 and later, the exemption amount is $0. Exemption coding Field 94EXV is retained for determining family size in certain calculations. 3.22.3.77.3 (11-08-2021) 946EV Child Tax Credit Under Six Total Eligible Verified Number This field is ERS input only. It is used to verify qualifying dependents under age 6 for Child Tax Credit. Refer to EC 290 and 345 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. as well as Field 946EV in IRM 3.12.2 Individual Master File Error Resolution General Instructions. 3.22.3.77.4 (11-08-2021) 94SEV Deduction for SE Tax Verified This field is for ERS input only. It’s used when the computer can’t compute deduction of SE tax correctly. 3.22.3.77.5 (11-08-2021) 94IRV IRA Deduction Verified This field is used by ERS on Form 1040-NR to verify the IRA deduction. Refer to EC 222 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.77.6 (11-08-2021) 94SLV Student Loan Interest Deduction Verified This field is used by ERS on Form 1040-NR to verify the Student Loan Interest deduction. Refer to EC 224 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.77.7 (11-27-2020) Field 94INV Taxable Income Verified This field is ERS input only. Refer to EC 250, and EC 265 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.77.8 (11-27-2020) Field 94TTV Tentative Tax Verified This field is ERS input only. Refer to EC 265 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.77.9 (11-08-2021) 94ARV Advance Premium Tax Credit Repayment Verified This field is used by ERS only. Refer to EC 190 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.77.10 (01-01-2024) 94RTV Retirement Savings Contribution Verified This field is for ERS input only. Refer to EC 286 in both IRM 3.22.3 and IR 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.77.11 (01-01-2020) Field 94CDV Child Tax and Other Dependent Credit Verified This field is ERS input only. Refer to EC 290 in both IRM 3.22.3. and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.77.12 (11-27-2020) Field 94NRV Total Statutory Credits Verified This field is ERS input only. Refer to EC 310 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.77.13 (01-01-2020) Field 94TXV Total Tax Verified This field is ERS input only. Refer to EC 334 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.77.14 (11-08-2021) Field 94AIV Additional Child Tax Credit Earned income Verified Amount This field is ERS input only. Refer to EC 344 and EC 345 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.77.15 (11-08-2021) Field 94ACV Additional Child Tax Credit Verified This field is for ERS input only and is valid for TY98 and later. It is to be used when the computer cannot arrive at the correct Additional Child tax Credit. See IRM 3.22.3.255 and IRM 3.22.3.256 EC 343, EC 344, and EC 345. 3.22.3.77.16 (01-01-2020) 94PTV Premium Tax Credit Verified This field is for ERS input only and is valid for TY 2014 and later. It is to be used when the computer cannot arrive at the correct Reconciled Premium Tax Credit Amount. 3.22.3.77.17 (11-08-2021) 94RCV Refundable Child Care Credit Verified This field is for ERS input only and is valid for TY 2021. It is used when the computer cannot arrive at the correct Refundable Child Care Credit. Refer to EC 363 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. 3.22.3.78 (01-01-2015) Error Code 001 - End of Year Reformat Error Code 001 is an End of Year Reformat error. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 001 for invalid conditions and correction procedures. 3.22.3.78.1 (01-01-2024) Field Displayed - EC 001 The following fields are displayed for EC 001. 1040-NR 1040-SS (sp)/1040-SS Field Title 01FSC Filing Status Code 01TXP 01TXP Tax Period 3.22.3.79 (01-01-2015) Error Code 002 - Statute of Limitations (PY) EC 002 generates when Statute of Limitations (PY) errors. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 002, for invalid conditions and correction procedures. 3.22.3.79.1 (01-01-2024) Fields Displayed - EC 002 These following fields are displayed for EC 002. 1040-NR 1040-SS (sp)/1040-SS Field Title CL CL Clear Code 01FSC Filing Status Code 01TXP 01TXP Tax Period 01SPC Special Processing Code 01CCC 01CCC Computer Condition Code 01FPC Form Processing Code 01RPC 01RPC Return Processing Code 3.22.3.80 (01-01-2015) Error Code 003 - Check Digits/P-SSN EC 003 generates when Check Digit/P-SSN errors. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns. EC 003, for invalid condition and correction procedures. 3.22.3.80.1 (01-01-2024) Fields Displayed - EC 003 These following fields are displayed for EC 003. 1040-NR 1040-SS (sp)/1040-SS Field Title 01PNC 01PNC Primary Name Control 01PS 01PS Primary SSN 01SS Secondary SSN 01NL1 01NL1 Name line 1 3.22.3.81 (06-16-2016) Error Code 004 - Name Control Mismatch/National Accounts Profile (NAP) EC 004 generates when Name Control Mismatch (NAP) errors. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 004, for invalid conditions and correction procedures. For returns filed using the Streamlined Filing Compliance Procedures see IRM 3.22.3.81.2. 3.22.3.81.1 (01-01-2024) Fields Displayed - EC 004 The following fields are displayed for EC 004. 1040-NR 1040-SS (sp)/1040-SS Field Title CL CL Clear Code 01PNC 01PNC Name Control >>>> >>>> NAP Entity Index File (EIF) Name Control Underprint 01PS 01PS Social Security number (SSN) 01NA1> 01NA1> NAP Access Indicator 01NR1> 01NR1> NAP EIF Response Indicator 01NL1 01NL1 Name line 1 01NL2 01NL2 Name line 2 01ADD 01ADD Address 01C/S 01C/S City/State 01ZIP 01ZIP Zip Code 01TXP 01TXP Tax Period 01COU Country Code 01FSC Filing Status Code 01CCC 01CCC Computer Condition Code 01RPC Return Processing Code Field 01EXC Exemption Code 94EXV Exemption Verified Code Field 03BDR 03BDR Balance Due/ Refund >>>> >>>> Balance Due/Overpayment Computer 03BDR> 03BDR> Balance Due/ Overpayment Taxpayer Computer 3.22.3.81.2 (06-16-2016) Returns Filed Using the Streamlined Filing Compliance Procedures (EC 004) The primary taxpayer must have a valid TIN to use the Streamlined Filing Compliance Procedures, either a Social Security number (SSN) or individual taxpayer identification number (ITIN). A TIN assigned by the IRS (IRSN) is not a valid TIN. Follow the procedures for Error Code 004 at IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 004. If a valid TIN is not found for the taxpayer, follow these procedures before entering RPC O and CCC Y: Remove any edits of SPC "P" , CCC "M" , CCC "R" , and CCC "P" . Edit CCC "N" if required, see IRM 3.22.3.13. After removing these codes enter RPC "O" and CCC "Y" and continue with normal processing. 3.22.3.81.3 (08-24-2018) Correction Procedures - Form 1040-NR (EC 004) Go to the bottom of the screen and transmit. Correct coding and transcription errors and misplaced entries in displayed fields. Unlike Form 1040, which is filed only by individuals, Form 1040-NR is filed by individuals (IMF) and by estates and trusts (BMF). On an individual’s Form 1040-NR, the “identifying number” for the filer is a SSN or ITIN. For an estate or trust, the identifying number is the estate or trust’s employer identification number (EIN). Some estate and trust Form 1040-NR are processed incorrectly as IMF returns because the returns were prepared and mailed to the Austin campus by the estate or trust with the EIN written in the format of a SSN. To ensure that the return is processed correctly, additional research is required when applying the EC 004 instructions in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 004, to Form 1040-NR. Research for the correct TIN on Form 1040-NR using both the SSN (xxx-xx-xxxx) and the EIN (xx-xxxxxxx) formats with command code INOLE. If the INOLE record for the EIN matches the entity of the return, then correct the TIN on the return and follow the procedures in Field 01NL1 at IRM 3.22.3.15.4 for suspending the return to Rejects for transshipment to the Kansas City Submission Processing Center (KCSPC). If not an EIN, then process as normal using the EC 004 instructions in IRM 3.12.3. 3.22.3.82 (06-16-2016) Error Code 005 - Primary Name Control/TIN Match on Invalid Side EC 005 generates when no account is found on the NAP. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns for invalid conditions and correction procedures. For returns filed using the Streamlined Filing Compliance Procedures see IRM 3.22.3.82.2. 3.22.3.82.1 (01-01-2024) Fields Displayed - EC 005 The following fields are displayed for EC 005. 1040-NR 1040-SS (sp)/1040-SS Field Title CL CL Clear Code 01PNC 01PNC Name Control >>>> >>>> Name Control Underprint 01PS 01PS SSN 01NA1> 01NA1> NAP Access Indicator 01NR1> 01NR1> NAP EIF Response Indicator 01SNC Secondary Name Control >>>> Secondary NAP Name Control 01SS Secondary TIN 01NA2> Secondary NAP Access Indicator 01NR2> Secondary TIN NAP EIF Response Indicator 01NL1 01NL1 Name line 1 01NL2 01NL2 Name line 2 01ADD 01ADD Address 01C/S 01C/S City/State 01ZIP 01ZIP Zip Code 01TXP 01TXP Tax Period 01COU Country Code 01FSC Filing Status Code 01CCC 01CCC Computer Condition Code 01RPC 01RPC Return Processing Code 01EXC Exemption Code 94EXV Exemption Code Verified Field 03BDR 03BDR Balance/Due Overpayment >>>> >>>> Balance/Due Overpayment Computer 03BDR> 03BDR> Balance/Due Refund Taxpayer Computer 3.22.3.82.2 (01-01-2020) Returns Filed Using the Streamlined Filing Compliance Procedures (EC 005) The primary taxpayer on a return filed using the Streamlined Filing Compliance Procedures must have a valid TIN, either a Social Security number (SSN) or individual taxpayer identification number (ITIN). A TIN assigned by the IRS (IRSN) is not a valid TIN. Follow the procedures for Error Code 005 in IRM 3.12.3, Error Resolution, Individual Tax Returns, EC 005. If a valid TIN is not found for the taxpayer, follow these procedures before entering RPC O and CCC Y: Remove any edits of SPC "P" , CCC "M" , CCC "R" , and CCC "P" . Edit CCC "N" if required, see IRM 3.22.3.13. After removing these codes enter RPC "O" and CCC "Y" and continue with normal processing. 3.22.3.83 (01-01-2015) Error Code 006 - First-Time Filers EC 006 generates when processing returns for first-time filers. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 006 for invalid condition and correction procedures. 3.22.3.83.1 (01-01-2024) Fields Displayed - EC 006 The following fields are displayed for EC 006. 1040-NR 1040-SS (sp)/ 1040-SS Field Title CL CL Clear Code 01PNC 01PNC Name Control >>>> >>>> NAP EIF Name Control Underprint 01PS 01PS SSN 01NA1> 01NA1> NAP Access Indicator 01NR1> 01NR1> NAP EIF Response Indicator 01SNC Secondary Name Control >>>> Secondary NAP Name Control 01SS Secondary TIN 01NA2> Secondary NAP Access Indicator 01NR2> Secondary TIN NAP EIF Response Indicator 01NL1 01NL1 Name line -1 01NL2 01NL2 Name line - 2 01ADD 01ADD Address 01C/S 01C/S City/State 01ZIP 01ZIP Zip Code 01TXP 01TXP Tax Period 01COU Country Code 01FSC Filing Status Code 01CCC 01CCC Computer Condition Code 01EXC Exemption Code 94EXV Exemption Verified Code Field 3.22.3.84 (01-01-2015) Error Code 007 - Address Information Different EC 007 generates when an account is present at Master File but the address information is different from the return. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 007 for invalid conditions and correction procedures. 3.22.3.84.1 (01-01-2024) Fields Displayed - EC 007 The following fields are displayed for EC 007 1040-NR 1040-SS (sp)/1040-SS Field Title CL CL Clear Code 01PNC 01PNC Name Control >>>> >>>> Name Control Underprint 01PS 01PS SSN 01NA1> 01NA1> NAP Access Indicator 01NR1> 01NR1> NAP EIF Response Indicator 01SNC Secondary Name Control >>>> Secondary NAP Name Control 01SS Secondary TIN 01NA2> Secondary NAP Access Indicator 01NR2> Secondary TIN NAP EIF Response Indicator 01NL1 01NL1 Name Line - 1 01NL2 01NL2 Name Line - 2 01ADD 01ADD Address 01C/S 01C/S City/State 01ZIP 01ZIP Zip Code 01TXP 01TXP Tax Period 01COU Country Code 01FSC Filing Status Code 01CCC 01CCC Computer Condition Code 01EXC Exemption Code 94EXV Exemption Code Verified Field 3.22.3.85 (01-01-2015) Error Code 008 - Marital Filing Status Change EC 008 generates when there is a change in filing status. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 008 for invalid conditions and correction procedures. 3.22.3.85.1 (01-01-2024) Fields Displayed - EC 008 The following fields are displayed for EC 008. 1040-NR 1040-SS (sp)/1040-SS Field Title CL CL Clear Code 01PNC 01PNC Name Control >>>> >>>> Name Control Underprint 01PS 01PS SSN 01NA1> 01NA1> NAP Access Indicator 01NR1> 01NR1> NAP EIF Response Indicator 01SNC 01SNC Secondary Name Control >>>> >>>> Secondary NAP Name Control 01SS 01SS Secondary TIN 01NA2> 01NA2> NAP Access Indicator 01NR2> 01NR2> NAP EIF Response Indicator 01NL1 01NL1 Name Line 1 01NL2 01NL2 Name Line 2 01ADD 01ADD Address 01C/S 01C/S City/State 01ZIP 01ZIP Zip Code 01TXP 01TXP Tax Period 01COU Country Code 01FSC 01FSC Filing Status Code 01NPF> 01NPF> NAP Previous Filing Status 01CCC 01CCC Computer Condition Code 01EXC Exemption Code 94EXV Exemption Code Verified Field 3.22.3.86 (11-08-2021) Error Codes 009 - Entity Data and Check Digit/Name Control EC 009 generates when there is mismatch for the check digits or name control. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 009 for invalid conditions and correction procedures. 3.22.3.86.1 (01-01-2024) Fields Displayed - EC 009 The following fields are displayed for EC 009. 1040-NR 1040-SS (sp)/1040-SS Field Title 01PNC 01PNC Primary Name Control 01NL1 01NL1 Name Line 1 01NL2 01NL2 Name Line 2 01ADD 01ADD Address 01C/S 01C/S City/State 01ZIP 01ZIP ZIP Code 3.22.3.87 (01-01-2015) Error Code 010 - Missing Spouse or Dependent TIN EC 010 generates when a secondary or dependent TIN is missing, or the TIN of a qualifying person for Child and Dependent Care Credit or EIC is missing. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 010 for invalid conditions. 3.22.3.87.1 (11-08-2021) Fields Displayed - EC 010 The following fields are displayed for EC 010. 1040-NR Field Title CL Clear Code 01FSC Filing Status Code 01TXP Tax Period 01EXC Exemption Code 94EXV Exemption Code Verified 01RPC Return Processing Code 01SPC Special Processing Code 01SNC Secondary Name Control >>>>> Secondary NAP Name Control 01SS Secondary TIN 01NA2> Secondary NAP Access Indicator 01NR2> Secondary TIN NAP EIF Response Indicator 01DS1 Dependent 1 SSN 01DN1 Dependent 1 Name Control >>>>> Dependent 1 NAP Name Control 01NP1> Dependent 1 NAP Access Indicator 01DR1> Dependent 1 NAP EIF Response Indicator 01DS2 Dependent 2 SSN 01DN2 Dependent 2 Name Control >>>>> Dependent 2 NAP Name Control 01NP2> Dependent 2 NAP Access Indicator 01DR2> Dependent 2 TIN NAP EIF Response Indicator 01DS3 Dependent 3 SSN 01DN3 Dependent 3 Name Control >>>>> Dependent 3 NAP Name Control 01NP3> Dependent 3 NAP Access Indicator 01DR3> Dependent 3 TIN NAP EIF Response Indicator 01DS4 Dependent 4 SSN 01DN4 Dependent 4 Name Control >>>>> Dependent 4 NAP Name Control 01NP4> Dependent 4 NAP Access Indicator 01DR4> Dependent 4 TIN NAP EIF Response Indicator 02DTR Dependent SSNs Not Required 21CN1 Dependent 1 Child Care Name Control >>>>> Dependent 1 Child Care NAP name Control 21NA1> Dependent 1 Child Care NAP Access Indicator 21NR1> Dependent 1 Child Care NAP EIF Response Indicator 21DS1 Dependent 1 Child Care SSN 21CN2 Dependent 2 Child Care Name Control >>>>> Dependent 2 Child Care NAP Name Control 21NA2> Dependent 2 Child Care NAP Access Indicator 21NR2> Dependent 2 Child Care NAP EIF Response Indicator 21DS2 Dependent 2 Child Care SSN 21CSR Dependent Child Care SSN Requirement 3.22.3.87.2 (01-14-2020) Returns Filed Using the Streamlined Filing Compliance Procedures The secondary taxpayer must have a valid TIN to use the Streamlined Filing Compliance Procedures, either a Social Security number (SSN) or individual taxpayer identification number (ITIN). A TIN assigned by the IRS (IRSN) is not a valid TIN. If a valid TIN is not found for the secondary taxpayer, follow these procedures before entering 94EXV. Remove any edits of SPC "P" , CCC "M" , CCC "R" , and CCC "P" . Enter CCC "N" if required, see IRM 3.22.3.13. After removing these codes, enter 94EXV as necessary and continue with normal processing. 3.22.3.87.3 (01-01-2024) Correction Procedures - EC 010 EC 010 generates when the spouse’s TIN is missing and position 2 of Field 01EXC is 1; and when dependent TINs are missing. EC 010 doesn’t generate for Form 1040(PR) and Form 1040-SS. For Form 1040, follow the instructions in IRM 3.12.3, EC 010, to resolve errors. If a Form 2555 for the spouse is present with a Form 1040 filed married filing jointly, and the secondary TIN is missing or invalid on the return, continue processing the Form 2555. The foreign earned income exclusion doesn’t require a valid TIN. 3.22.3.87.3.1 (11-27-2020) Form 1040-NR - Correction Procedures Missing TIN for Spouse Most nonresident alien taxpayers can claim only one exemption for "self" (the primary taxpayer). However, some nonresident alien taxpayers may claim additional exemptions and dependents based on their country of residence. TY 2018 and later. A spouse is not eligible as a dependent for Credit for Other Dependents (ODC), and in TY 2018 exemptions aren’t allowed to be claimed on individual tax returns (the exemption amount is $0). For these reasons, the TIN and name of the spouse is no longer included on Form 1040-NR. Delete entries if present in Field 01SNC and Field 01SS. If filing status is "6" change it to "3" if "married nonresident alien" . TY 2017 and prior. Exemptions are restricted by country of residence. Residents of certain countries may claim an exemption for their spouse. Determine the country of residence using taxpayer information on Form 1040-NR as described in IRM 3.22.3.11.3. Use the following table to determine appropriate actions: If And Then The taxpayer is a U.S. national or a resident of: Canada South Korea Mexico India and claiming an exemption for the spouse, TIN is found on return or attachments, Enter TIN in appropriate field. The taxpayer is a U.S. national or a resident of: Canada South Korea Mexico India and claiming an exemption for the spouse, Spouse’s TIN is missing or invalid, Follow the instructions in IRM 3.12.3, EC 010. If EC 250 generates after using Field 94EXV, assign TPNC 206. All others, or if the country of residence can’t be determined, Delete name and TIN information for spouse. Allow only one exemption for self. EC 250 generates, assign TPNC 401. 3.22.3.87.3.2 (11-27-2020) Form 1040-NR - Correction Procedures Missing TIN for Dependent Most nonresident alien taxpayers can claim only one exemption for "self" (the primary taxpayer). However, some nonresident alien taxpayers may claim additional exemptions and dependents based on their country of residence. Note: TY 2018 and later, the exemption amount that can be claimed is $0. Exemption coding (Field 01EXC and Field 94EXV) is retained for determining family size in certain calculations. An exemption that is allowed based on country of residence is also an allowable dependent. Dependents and exemptions are restricted by country of residence on Form 1040-NR. Determine the country of residence using taxpayer information on Form 1040-NR as described in IRM 3.22.3.11.3. Use the following table to determine appropriate actions: Note: TY 2018 and later, If a spouse is identified as listed in the dependent section, delete the TIN and name control from applicable fields if present. If And Then The taxpayer is a U.S. national or a resident of: Canada South Korea Mexico India and claiming a dependent, TIN is found on return or attachments, Enter TIN in appropriate field. Note: See exception for South Korea below . The taxpayer is a U.S. national or a resident of: Canada South Korea Mexico India and claiming a dependent, TIN is missing or invalid, Follow the instructions in IRM 3.12.3, EC 010. For TY17 and prior years, If EC 250 generates after using Field 94EXV, assign TPNC 206 or TPNC 605 as appropriate. Note: See exception for South Korea below . The taxpayer is a resident of South Korea, Claims a dependent other than child who lived in the United States, Allow only dependent children who lived in the U.S. Enter allowable dependents in Field 94EXV For TY17 and prior years, if EC 250 generates, assign TPNC 402. Note: Positions 6 and 7 of Field 94EXV should always be zero. All others, or if the country of residence can’t be determined, Delete name and TIN information for dependents Allow only one exemption for self. For TY17 and prior years, if EC 250 generates, assign TPNC 401. 3.22.3.88 (01-01-2015) Error Code 011 - NAP Access Indicator EC 011 generates when the NAP Access Indicator is NOT present. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 011 for invalid conditions and correction procedures. 3.22.3.88.1 (01-01-2024) Fields Displayed - EC 011 The following fields are displayed for EC 011. 1040-NR 1040-SS (sp)/1040-SS Field Title CL CL Clear Code ERSRI> ERSRI> ERS Response Indicator DEPRI> DEPRI> ERS Dependent Revalidation Indicator AVSRI> AVSRI> AVS Revalidation Indicator EIFAI> EIFAI> EIF Access Indicator T-DAT> T-DAT> Tentative Return Due Date Computer PNEXT> Primary NAP Extension Due Date SNEXT> Secondary NAP Extension Due Date 01NA1> 01NA1> NAP Access Indicator 01NR1> 01NR1> NAP EIF Response Indicator 01PYB> 01PYB> Primary NAP Year of Birth 01NA2> 01NA2> Secondary NAP Access Indicator 01NR2> 01NR2> Secondary TIN NAP EIF Response Indicator 01SYB> 01SYB> Secondary NAP Year of Birth 01NP1> 01NP1> Dependent 1 NAP Access Indicator 01DR1> 01DR1> Dependent 1 TIN NAP EIF Response Indicator 01YB1> 01YB1> Dependent 1 NAP Year of Birth 01NP2> 01NP2> Dependent 2 NAP Access Indicator 01DR2> 01DR2> Dependent 2 TIN NAP EIF Response Indicator 01YB2> 01YB2> Dependent 2 NAP Year of Birth 01NP3> 01NP3> Dependent 3 NAP Access Indicator 01DR3> 01DR3> Dependent 3 TIN NAP EIF Response Indicator 01YB3> 01YB3> Dependent 3 NAP Year of Birth 01NP4> 01NP4> Dependent 4 NAP Access Indicator 01DR4> 01DR4> Dependent 4 TIN NAP EIF Response Indicator 01YB4> 01YB4> Dependent 4 NAP Year of Birth 21NA1> Dependent 1 Child Care NAP Access Indicator 21NR1> Dependent 1 Child Care TIN NAP EIF Response Indicator 21NA2> Dependent 2 Child Care NAP Access Indicator 21NR2> Dependent 2 Child Care TIN NAP EIF Response Indicator 3.22.3.89 (01-01-2019) Error Code 012 - Spouse/Dependent TIN Validation EC 012 generates when the account for the spouse or a dependent is not present or there is a name control and TIN mismatch. For Form 1040, follow the instructions in IRM 3.12.3, EC 012, to resolve errors. If a Form 2555 for the spouse is present with a Form 1040 filed married filing jointly, and the secondary TIN is missing or invalid on the return, continue processing the Form 2555. The foreign earned income exclusion doesn’t require a valid TIN. 3.22.3.89.1 (01-01-2024) Fields Displayed - EC 012 The following fields are displayed for EC 012. 1040-NR 1040-SS (sp)/1040-SS Field Title CL CL Clear Field 01FSC 01FSC Filing Status 01TXP 01TXP Tax Period 01EXC Exemption Code 94EXV Exemption Code Verified 01RPC 01RPC Return Processing Code 01SPC 01SPC Special Processing Code MEFII> MeF Imperfect Return Indicator 01SNC 01SNC Secondary Name Control >>>> >>>> Secondary NAP EIF Name Control 01SS 01SS Secondary SSN 01NA2> 01NA2> Secondary NAP Access Indicator 01NR2> 01NR2> Secondary NAP EIF Response Indicator 01DS1 01DS1 Dependent 1 SSN 01DN1 01DN1 Dependent 1 Name Control >>>> >>>> Dependent 1 NAP Name Control 01NP1> 01NP1> Dependent 1 NAP Access Indicator 01DR1> 01DR1> Dependent 1 TIN NAP EIF Response Indicator 01CT1 Dependent 1 Child Tax and Other Dependent Credit Indicator 01DS2 01DS2 Dependent 2 SSN 01DN2 01DN2 Dependent 2 Name Control >>>> >>>> Dependent 2 NAP Name Control 01NP2> 01NP2> Dependent 2 NAP Access Indicator 01DR2> 01DR2> Dependent 2 TIN NAP EIF Response Indicator 01CT2 Dependent 2 Child Tax and Other Dependent Credit Indicator 01DS3 01DS3 Dependent 3 SSN 01DN3 01DN3 Dependent 3 Name Control >>>> >>>> Dependent 3 NAP Name Control 01NP3> 01NP3> Dependent 3 NAP Access Indicator 01DR3> 01DR3> Dependent 3 TIN NAP EIF Response Indicator 01CT3 Dependent 3 Child Tax and Other Dependent Credit Indicator 01DS4 01DS4 Dependent 4 SSN 01DN4 01DN4 Dependent 4 Name Control >>>> >>>> Dependent 4 NAP Name Control 01NP4> 01NP4> Dependent 4 NAP Access Indicator 01DR4> 01DR4> Dependent 4 TIN NAP EIF Response Indicator 01CT4 Dependent 4 Child Tax and Other Dependent Credit Indicator 02DTR 02DTR Dependent TIN Requirement 21CN1 Dependent 1 Child Care Name Control >>>> Dependent 1 Child care NAP Name Control 21DS1 Dependent 1 Child Care SSN 21NA1> Dependent 1 Child Care NAP Access Indicator 21NR1> Dependent 1 Child Care TIN NAP EIF response Indicator 21CN2 Dependent 2 Child Care Name Control >>>> Dependent 2 Child Care NAP Name Control 21DS2 Dependent 2 Child Care SSN 21NA2> Dependent 2 Child Care NAP Access Indicator 21NR2> Dependent 2 Child Care TIN NAP EIF Response Indicator 21CSR Dependent Child Care SSN Requirement 3.22.3.89.2 (01-14-2020) Returns Filed Using the Streamlined Filing Compliance Procedures (EC 012) The secondary taxpayer must have a valid TIN to use the Streamlined Filing Compliance Procedures, either a Social Security number (SSN) or individual taxpayer identification number (ITIN). A TIN assigned by the IRS (IRSN) is not a valid TIN. If a valid TIN is not found for the secondary taxpayer, follow these procedures before entering 94EXV. Remove any edits of SPC "P" , CCC "M" , CCC "R" , and CCC "P" . Enter CCC "N" if required, see IRM 3.22.3.13. After removing these codes, enter 94EXV as necessary and continue with normal processing. 3.22.3.89.3 (06-08-2017) Correction Procedures - EC 012 Go to the bottom of the screen and transmit. Correct coding and transcription errors and misplaced entries on displayed fields. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 012 for correction procedures not listed below. 3.22.3.89.3.1 (11-27-2020) Form 1040-NR - Correction Procedures Spouse TIN Validation Most nonresident alien taxpayers can claim only one exemption for "self" (the primary taxpayer). However, some nonresident alien taxpayers may claim additional exemptions and dependents based on their country of residence. TY 2018 and later. A spouse is not eligible as a dependent for Credit for Other Dependents (ODC), and in TY 2018 and later exemptions aren’t allowed to be claimed on individual tax returns (the exemption amount is $0). For these reasons, the TIN and name of the spouse is no longer included on Form 1040-NR. Delete entries if present in Field 01SNC and Field 01SS. If filing status is "6" change it to "3" if "married nonresident alien" . If spouse is identified as listed in the dependent section, delete the TIN and name control from fields, if entered. TY 2017 and prior. Exemptions are restricted by country of residence and in some cases a spouse may be claimed as an exemption. Determine the country of residence using taxpayer information on Form 1040-NR as described at IRM 3.22.3.11.3. Use the following table to determine appropriate actions: If And Then The taxpayer is a U.S. national or a resident of: Canada South Korea Mexico India and claiming an exemption for the spouse, Spouse’s TIN is invalid, Follow the instructions in IRM 3.12.3, EC 012. If EC 250 generates after using Field 94EXV, assign TPNC 206. All others, or if the country of residence can’t be determined, Delete name and TIN information for spouse. Allow only one exemption for self. If EC 250 generates, assign TPNC 401. 3.22.3.89.3.2 (11-27-2020) Form 1040-NR - Correction Procedures TIN Validation for Dependent Most nonresident alien taxpayers can claim only one exemption for “self” (the primary taxpayer). However, some nonresident alien taxpayers may claim additional exemptions and dependents based on their country of residence. Note: TY 2018 and later, the exemption amount that can be claimed is $0. Exemption coding (Field 01EXC and Field 94EXV) is retained for determining family size in certain calculations. An exemption that is allowed based on country of residence is also an allowable dependent. Dependents and exemptions are restricted by country of residence on Form 1040-NR. Determine the country of residence using taxpayer information on Form 1040-NR as described at IRM 3.22.3.11.3. Use the following table to determine appropriate actions: Note: TY 2018 and later, If spouse is identified as listed in the dependent section, delete the TIN and name control from applicable fields if present. If And Then The taxpayer is a U.S. national or a resident of: Canada Mexico India and claiming a dependent, Follow the instructions in IRM 3.12.3, EC 012. The taxpayer is a resident of South Korea, Claims a dependent other than self or child(ren) who lived in the United States, Allow only dependent children who lived in the U.S. Enter allowable dependents in Field 94EXV For TY17 and prior years, if EC 250 generates, assign TPNC 402. Note: Positions 6 and 7 of Field 94EXV should always be zero. All others, or if the country of residence can’t be determined, Delete name and TIN information for dependents. Allow only one exemption for self. EC 250 generates, assign TPNC 401. 3.22.3.89.3.3 (01-01-2024) Form 1040-SS (sp)/Form 1040-SS - Claiming Additional Child Tax Credit To validate the Secondary TIN, follow the If and Then chart below: If Then The Secondary TIN or Name Control (NC) was entered incorrectly, Overlay Field 01SS and/or Field 01SNC with the correct information. The Secondary TIN and Name Control was entered correctly, Search the return or attachments for a different TIN and/or NC. If a different TIN is found, overlay Field 01SS with the correct TIN. If a different NC is found, enter "C" in the Clear field. A different Secondary TIN and/or NC is not found on the return or attachments, Research CC INOLE, using the primary TIN If a different TIN is found, overlay Field 01SS with the correct TIN. If a different NC is found, enter "C" in the Clear Field. Research CC INOLE, NAMES or NAMEI for the secondary If a different TIN is found, overlay Field 01SS with the correct TIN. If a different NC is found, enter "C" in the Clear Field. A different TIN is NOT found, Enter "C" in the clear field. EC 012 generates for one or more of the dependents. Check for coding and transcription errors. If And Then A Qualifying Child has a NAP Access Indicator of 2 or 9, The name control underprints with the primary or secondary taxpayer's name control, or matches the primary or secondary taxpayer's name(s) on the return, Change that child's name control to match the underprint. One or more dependents are not valid, Enter "C" in the clear field. Note: Do not change field 01EXC. 3.22.3.90 (01-01-2015) Error Code 013 - Duplicate TINs EC 013 generates when any TIN is listed for more than one person. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 013 for invalid conditions and correction procedures. 3.22.3.90.1 (01-01-2024) Fields Displayed - EC 013 The following fields are displayed for EC 013. 1040-NR 1040-SS (sp)/1040-SS Field Title 01PS 01PS Primary SSN 01SS 01SS Secondary SSN 01EXC 01EXC Exemption Code Field 94EXV Exemption Code Verified Field 01DS1 01DS1 Dependent 1 SSN 01DN1 01DN1 Dependent 1 Name Control 01DS2 01DS2 Dependent 2 SSN 01DN2 01DN2 Dependent 2 Name Control 01DS3 01DS3 Dependent 3 SSN 01DN3 01DN3 Dependent 3 Name Control 01DS4 01DS4 Dependent 4 SSN 01DN4 01DN4 Dependent 4 Name Control 21CN1 Child Care Credit Dependent 1 Name Control 21DS1 Child Care Credit Dependent 1 SSN 21CN2 Child Care Credit Dependent 2 Name Control 21DS2 Child Care Credit Dependent 2 SSN 38TN1 Form 8839 Child 1 SSN 38NC1 Form 8839 Child 1 Name Control 38TN2 Form 8839 Child 2 SSN 38NC2 Form 8839 Child 2 Name Control 38TN3 Form 8839 Child 3 SSN 38NC3 Form 8839 Child 3 Name Control 3.22.3.91 (01-01-2015) Error Code 014 - Entity Data EC 014 generates when the Entity data is not consistent with the Master File Entity data. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 014 for invalid conditions and correction procedures. 3.22.3.91.1 (01-01-2024) Field Displays - EC 014 The following fields are displayed for EC 014. 1040-NR 1040-SS (sp) /1040-SS Field Title 01PNC 01PNC Name Control >>>> Primary NAP EIF Name Control 01PS 01PS Primary SSN 01SS Secondary SSN 01NL1 01NL1 First Name Line 01NL2 01NL2 Second Name Line 01ADD 01ADD Street Address 01C/S 01C/S City/State 01ZIP 01ZIP Zip Code 01TXP 01TXP Tax Period 01FSC 01FSC Filing Status Code 3.22.3.92 (01-01-2015) Error Code 016 - FSC 2 No Ampersand EC 016 generates when FSC 2 and the Name Line does not have an "&" . Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 016 for invalid conditions and correction procedures. 3.22.3.92.1 (01-01-2024) Fields Displayed - EC 016 The following fields are displayed for EC 016. 1040-SS (sp)/1040-SS Field Title 01NL1 Name Line 1 01FSC Filing status Code 01EXC Exemption Code 03TAX Total Tax >>>> Total Tax IMF Computer 3.22.3.93 (01-01-2024) Error Code 017 - ITIN Expiration EC 017 generates when the NAP ITIN Status Code is "I" for the Primary (Field 01PIC>), Secondary (Field 01SIC>), Dependent (Field 01DC1> through 01DC4>), or Child Care Dependent (Field 21CC1> or 21CC2>); when the Primary TIN begins with a "9" and CCC X is present; or when Filing Status is 2 and Secondary TIN begins with a "9" and RPC E is present. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 017, for invalid conditions. EC 017 is valid on Form 1040-NR, Form 1040(PR), Form 1040-SS. 3.22.3.93.1 (01-01-2024) Fields Displayed - EC 017 The following fields are displayed for EC 017. 1040-NR 1040-SS (sp)/1040-SS Field Title CL CL Clear Code 01FSC 01FSC Filing Status Code 01TXP 01TXP Tax Period 01EXC Exemption Code 94EXV Exemption Verified 01RPC 01RPC Return Processing Code 01SPC 01SPC Special Processing Code 01PS 01PS Primary SSN 01NA1> 01NA1> Primary-NAP-Access-IND 01PIC> 01PIC> Primary ITIN Status Code 01SS 01SS Secondary SSN 01NA2> 01NA2> Secondary NAP Access Indicator 01SIC> 01SIC> Secondary ITIN Status Code 01DS1 01DS1 Dependent 1 SSN 01NP1> 01NP1> Dependent 1 NAP Access Indicator 01DC1> 01DC1> Dependent 1 ITIN Status Code 01DS2 01DS2 Dependent 2 SSN 01NP2> 01NP2> Dependent 2 NAP Access Indicator 01DC2> 01DC2> Dependent 2 ITIN Status Code 01DS3 01DS3 Dependent 3 SSN 01NP3> 01NP3> Dependent 3 NAP Access Indicator 01DC3> 01DC3> Dependent 3 ITIN Status Code 01DS4 01DS4 Dependent 4 SSN 01NP4> 01NP4> Dependent 4 NAP Access Indicator 01DC4> 01DC4> Dependent 4 ITIN Status Code 02DTR 02DTR Dependent TIN Requirement 21DS1 Dependent 1 Child Care SSN 21NA1> Dependent 1 Child Care NAP Access Indicator 21CC1> Child Care Dependent 1 ITIN Status Code 21DS2 Dependent 2 Child Care SSN 21NA2> Dependent 2 Child Care NAP Access Indicator 21CC2> Child Care Dependent 2 ITIN Status Code 03GE> Gross Exemption Amount Computer 03INC Taxable Income Amount >>>> Taxable Income Computer 01TCE> 01TCE> Child Tax Credit Total Eligible Computer Number 01TDE> Other Dependent Credit Total Eligible Computer Number 03COD> Gross Child and Other Dependent Credit Computer 03COD Child and Other Dependent Credit Amount >>>> Child and Other Dependent Credit Computer Amount 03ACT> 03ACT> Gross Additional Child Credit Tax Computer Amount 03ACT 03ACT Additional Child Tax Credit Amount >>>> >>>> Additional Child Tax Credit Computer Amount 21QI Qualifying Individuals 21GC> Gross Child Care Credit Computer 05302 Child Care Credit 05RCC Refundable Child Care Credit 3.22.3.93.2 (01-01-2024) Correction Procedures - EC 017 Form 1040-SS and Form 1040-SS (sp) Go to the bottom of the screen and transmit to validate. Fields present at EC 017 include ITIN Status Codes for the primary, secondary, and dependents. If ITIN Status Code "I" is present for any ITIN do not adjust Field 94EXV. Enter "C" in the Clear Code field and use the instructions and TPNCs found in EC 343 at IRM 3.22.3.256.2 as well as EC 345 IRM 3.22.3.257. 3.22.3.93.3 (11-27-2020) Correction Procedures - EC 017 Form 1040-NR Go to the bottom of the screen and transmit to validate. Follow the instructions in IRM 3.12.3, Error Code 017. If EC 250, EC 279, EC 287, EC 290, or EC 343 generate after entering "C" in the Clear Field, assign TPNCs for Form 1040-NR according to these instructions: EC 250 - IRM 3.22.3.193.2 EC 279 - IRM 3.22.3.217.3 EC 287 - IRM 3.22.3.220 EC 290 - IRM 3.22.3.223.2 EC 343 - IRM 3.22.3.256.6 3.22.3.94 (01-01-2015) Error Code 018 - Date of Death Is Prior to Tax Period EC 018 generates when the date of death is prior to the tax period. Refer to both IRM 3.22.3 (if Form SSA/RRB 1042-S is attached) and IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 018 for invalid conditions and correction procedures. 3.22.3.94.1 (11-08-2021) Fields Displayed - EC 018 The following fields are displayed for EC 018. 3.22.3.94.2 (11-08-2021) Correction Procedures - EC 018 for Form 1040 Form 1040 - If Form SSA/RRB 1042-S is attached READ ALL INSTRUCTIONS BELOW: If both the copy of green card (for the taxpayer listed on the Form SSA/RRB 1042-S) and signed declaration or statement are attached, correspond for TIN verification selecting paragraph d on Form 13900 for EC 018. If the copy of green card and/or statement is missing, correspond for copy of green card and/or declaration statement and TIN verification selecting paragraphs N and d on Form 13900. 3.22.3.94.3 (11-08-2021) Correction Procedures - EC 018 for Form 1040-NR If Form SSA/RRB 1042-S is attached, correspond for TIN verification selecting paragraph d on Form 13900 for EC 018. 3.22.3.95 (01-01-2017) Error Code 019 - Date of Birth is Greater Than Tax Period EC 019 is generated when any dependent date of birth is after the tax period of the return. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 019 for invalid conditions and correction procedures. 3.22.3.95.1 (01-01-2024) Fields Displayed - EC 019 The following fields are displayed for EC 019. 1040-NR 1040-SS (sp)/1040-SS Field Title CL CL Clear Code 01FSC 01FSC Filing Status Code 01CCC 01CCC Computer Condition Code 01TXP 01TXP Tax Period 01EXC Exemption Code 94EXV Exemption Code Verified 01RPC 01RPC Returns Processing Code 01SPC 01SPC Special Processing Code T-DAT> T-DAT> Tentative Return Due Date Computer 01PS 01PS Primary SSN 01NA1> Primary NAP Access Indicator 01PAD> 01PAD> Primary NAP TIN Assignment Date 01SS 01SS Secondary SSN 01NA2> Secondary NAP Access Indicator 01SAD> 01SAD> Secondary NAP TIN Assignment Date 01DN1 Dependent 1 Name Control 01DS1 01DS1 Dependent 1 SSN 01YB1> 01YB1> Dependent 1 Year of Birth 01NP1> 01NP1> Dependent 1 NAP Access Indicator 01AD1> 01AD1> Dependent 1 TIN Assignment Date 01DN2 Dependent 2 Name Control 01DS2 01DS2 Dependent 2 SSN 01YB2> 01YB2> Dependent 2 Year of Birth 01NP2> 01NP2> Dependent 2 NAP Access Indicator 01AD2> 01AD2> Dependent 2 TIN Assignment Date 01DN3 Dependent 3 Name Control 01DS3 01DS3 Dependent 3 SSN 01YB3> 01YB3> Dependent 3 Year of Birth 01NP3> 01NP3> Dependent 3 NAP Access Indicator 01AD3> 01AD3> Dependent 3 TIN Assignment Date 01DN4 Dependent 4 Name Control 01DS4 01DS4 Dependent 4 SSN 01YB4> 01YB4> Dependent 4 Year of Birth 01NP4> 01NP4> Dependent 4 NAP Access Indicator 01AD4> 01AD4> Dependent 4 TIN Assignment Date 21DS1 Child Care Dependent 1 SSN 21YB1> Child Care Dependent 1 NAP Date of Birth 21DS2 Child Care Dependent 2 SSN 21YB2> Child Care Dependent 2 NAP Date of Birth 01TCE> 01TCE> Child Tax Credit Total Eligibility Computer 94CEV 94CEV Child Tax Credit Total Eligibility Verified 01TDE> Other Dependent Tax Credit Total Eligibility Computer 94DEV Other Dependent Credit Total Eligibility Verified 03COD> Gross Child and Other Dependent Credit Computer 03ACT> 03ACT> Gross Additional Child Tax Credit Computer Amount Note: Field T-DAT>, Tentative Return Date Computer, is computed based on the due date of the income tax return and approved extensions. See Exhibit 3.22.3-17 for due dates of Form 1040-NR 3.22.3.96 (01-01-2015) Error Codes 020 - Major City Code EC 020 generates when the major city code is invalid. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 020 for invalid conditions and correction procedures. 3.22.3.96.1 (01-01-2024) Fields Displayed - EC 020 The following fields are displayed for EC 020. 1040-NR 1040-SS (sp)/1040-SS Field Title 01NL2 01NL2 Name Line 2 01ADD 01ADD Address 01C/S 01C/S City/State 01ZIP 01ZIP ZIP Code 3.22.3.97 (01-01-2019) Error Code 021 - Major City Code/ZIP Code <