3.11.3 Individual Income Tax Returns

Manual Transmittal

December 07, 2018

Purpose

(1) This transmits revised IRM 3.11.3, Returns and Documents Analysis - Individual Income Tax Returns - Code and Edit.

Material Changes

(1) IRM 3.11.3 This IRM has been rewritten to provide instructions for newly redesigned 2018 Form 1040 and new Schedules 1 through 6. This has necessitated the extensive renumbering of sections throughout. TY17 processing instructions for Form 1040/1040A/1040EZ have been moved to the Prior Year section of this IRM.

(2) IRM 3.11.3 Various editorial changes were made throughout the IRM, e.g., updating IRM references; correcting spelling or grammatical errors; updating information that changes annually, such as tax years; updating website addresses/links; adding or correcting IRM references; formatting; etc.

(3) IRM 3.11.3 Updated exemption, standard deduction and additional standard deduction amounts, references to all money amounts, tolerances, limitations, and EIC money amounts throughout IRM.

(4) IRM 3.11.3 Updated line numbers for forms and schedules throughout IRM.

(5) IRM 3.11.3.1.6 Added information for Job Aid 2431-010.

(6) IRM 3.11.3.2.1 Updated with programs worked for 2019.

(7) IRM 3.11.3.3.1(5) Added new paragraph with instructions for lining through TE numbers.

(8) IRM 3.11.3.3.2(2) Added reference to Job Aid 2431-010.

(9) IRM 3.11.3.3.3(2) Added form title for Form 8938.

(10) IRM 3.11.3.3.2(3) Note deleted, information moved to new paragraph 4.

(11) IRM 3.11.3.3.3(2) Added form name to exception.

(12) IRM 3.11.3.3.3(7) Added new paragraph regarding arrangement of forms with multiple pages.

(13) IRM 3.11.3.3.3(9) Re-written to include information for new Schedules 1 through 6.

(14) IRM 3.11.3.3.3(11) Revised chart to add new Schedules 1 through 6.

(15) IRM 3.11.3.3.3(12) Revised paragraph to apply to prior year form 1040A.

(16) IRM 3.11.3.3.3(13) Revised paragraph to apply to prior year form 1040EZ.

(17) IRM 3.11.3.3.4.1(3) Revised information to make applicable to TY2017 and prior and TY2018 and later processing.

(18) IRM 3.11.3.3.5(4) Revised to add reference to Job Aid 2431-010.

(19) IRM 3.11.3.3.6(5)a Revised to include the word dependents.

(20) IRM 3.11.3.3.7(4) Revised to add reference to Job Aid 2431-010.

(21) IRM 3.11.3.3.7.1(4) Revised to add current year and prior year processing instructions.

(22) IRM 3.11.3.3.7.2 Revised to state Audit Codes can be alpha or numeric characters and to update editing location for current and prior year.

(23) IRM 3.11.3.3.7.3(4) Revised to add current year and prior year processing instructions.

(24) IRM 3.11.3.3.7.4(2) Revised to add current year and prior year processing instructions.

(25) IRM 3.11.3.3.7.5(2) Revised to add current year and prior year processing instructions.

(26) IRM 3.11.3.4.3(4) Revised bullet list to include both current year and prior year instructions.

(27) IRM 3.11.3.5.2(1) Expanded information regards to Filing Status.

(28) IRM 3.11.3.5.2.2(7) Revised exception to edit Action Code 300 for TY 2017 only.

(29) IRM 3.11.3.5.3.2(6) Updated all charts by adding new current year information and revised existing information making it applicable for prior year processing.

(30) IRM 3.11.3.6.1.3(4) Removed OUO designation as unnecessary.

(31) IRM 3.11.3.6.1.6(6) Revised bullet list to include both current year and prior year instructions.

(32) IRM 3.11.3.6.1.9 Added new section for Suicide Threats.

(33) IRM 3.11.3.6.2.1(1) Bullet list updated to include any indication the TP has previously filed.

(34) IRM 3.11.3.6.2.3(1) Revised bullet list to include both current year and prior year instructions.

(35) IRM 3.11.3.6.2.5(2)and (4) Revised to include both current year and prior year instructions.

(36) IRM 3.11.3.6.2.9 Revised section to update dollar amounts and add prior year instructions, remove instruction to edit CCC Y and added instructions for editing Action Code 430.

(37) IRM 3.11.3.6.2.10 Revised section to update with prior year form processing instructions.

(38) IRM 3.11.3.6.2.13(2) Updated to include both current and prior year information.

(39) IRM 3.11.3.6.2.14(1) Added information for current year 1040 processing and revised current instructions to apply to prior year processing.

(40) IRM 3.11.3.6.2.15(1) Revised example.

(41) IRM 3.11.3.6.2.16 Updated to include both current and prior year information.

(42) IRM 3.11.3.6.2.17 Updated to include both current and prior year information.

(43) IRM 3.11.3.6.2.18 Updated to include both current and prior year information.

(44) IRM 3.11.3.6.2.19 Updated to include both current and prior year information.

(45) IRM 3.11.3.6.2.20(3) Added information for current year 1040 processing and revised current instructions to apply to prior year processing.

(46) IRM 3.11.3.6.2.20.1(1) Note revised to assist in identifying returns that need to be routed.

(47) IRM 3.11.3.7.1(4) Deleted as no longer needed.

(48) IRM 3.11.3.7.1(5)b Deleted, 1040A and 1040EZ not valid for Current Year.

(49) IRM 3.11.3.7.2(1) Revised to state pull for work leader. Added new (2) with instructions for work leader.

(50) IRM 3.11.3.7.4(4) Revised to state pull for work leader. Added new (5) with instructions for work leader.

(51) IRM 3.11.3.8.1(2) Added new (a) to list for current year information and revised existing information to reflect prior year information.

(52) IRM 3.11.3.8.2 Revised to include both current and prior year information and added new graphic.

(53) IRM 3.11.3.8.2.1(1) Note revised to identify correct editing location for both current and prior years returns.

(54) IRM 3.11.3.8.3(1) Added exception regarding Maine and Massachusetts.

(55) IRM 3.11.3.8.6(3) Chart First and second row, first box, removed Form 1040A and 1040EZ information.

(56) IRM 3.11.3.8.12.1(1) Revised bullet list as necessary for current year processing.

(57) IRM 3.11.3.9.2(1) Added reference for definition of Filing Status Codes.

(58) IRM 3.11.3.9.2.1.2(3) Revised to specify prior year editing.

(59) IRM 3.11.3.9.2.1(4) Reminder revised to expand on current instructions.

(60) IRM 3.11.3.9.2.1(6)a Added exception for Form W-7 edited with a red X.

(61) IRM 3.11.3.9.2.3(6) Added reference to Schedule 6 as a location used to identify a foreign return.

(62) IRM 3.11.3.10.1(1) Revised Reminder for clarification on caption editing.

(63) IRM 3.11.3.10.1(9) Chart - Added definition to the referenced filing status box numbers in chart.

(64) IRM 3.11.3.10.1(10) Removed OUO designation as unnecessary.

(65) IRM 3.11.3.12.1(1) Identified the new editing location of the Filing Status when required.

(66) IRM 3.11.3.12.1(2) List - Added Note with reference indicating where the taxpayer will write in the name on current and prior year returns.

(67) IRM 3.11.3.12.2 Added definition to the referenced filing status box numbers throughout section.

(68) IRM 3.11.3.12.2 Charts, revised to include TY18 and later instructions throughout section.

(69) IRM 3.11.3.13 Title changed to Dependents-Exemptions and (1) added stating exemptions do not apply to TY18 and later returns.

(70) IRM 3.11.3.13.1 Revised section to indicate that DSI is only applicable to TY17 and prior.

(71) IRM 3.11.3.13.2 Added new section for Dependent Coding, TY18 and later, added new graphics throughout.

(72) IRM 3.11.3.13.3 Revised Exemption Coding section to apply to TY17 and prior.

(73) IRM 3.11.3.13.5.1 Revised section as necessary to apply to TY17 and prior and TY18 and later.

(74) IRM 3.11.3.13.5.2 Revised section as necessary to apply to TY17 and prior and TY18 and later.

(75) IRM 3.11.3.14 through 3.11.3.14.8.5 moved to 3.11.3.73.3.1 through 3.11.3.73.3.2.5.

(76) IRM 3.11.3.14 through 3.11.3.14.8.3 Entire Form 1040 processing section rewritten for TY18.

(77) IRM 3.11.3.14.2(2) Chart - Removed OUO designation as unnecessary.

(78) IRM 3.11.3.14.2.16(4) Removed OUO designation as unnecessary.

(79) IRM 3.11.3.14.2.19(2) Revised correspondence condition.

(80) IRM 3.11.3.14.7 Revised paragraph (2) and (4)’s Note to accommodate new allowance for two IP PINs.

(81) IRM 3.11.3.15 New section added for processing new Schedule 1.

(82) IRM 3.11.3.16 New section added for processing new Schedule 2.

(83) IRM 3.11.3.17 New section added for processing new Schedule 3.

(84) IRM 3.11.3.18 New section added for processing new Schedule 4.

(85) IRM 3.11.3.19 New section added for processing new Schedule 5.

(86) IRM 3.11.3.20 New section added for processing new Schedule 6.

(87) IRM 3.11.3.21 Section Rewritten for TY18 processing and now includes TY17 and prior instructions for Schedule A.

(88) IRM 3.11.3.21.1.9(1) Revised the bullet for Gambling losses and added new bullet for ordinary losses as outlined in Schedule A instructions. Also deleted paragraph (2) as no longer applicable.

(89) IRM 3.11.3.22 Section revised to include both TY18 and later and TY17 and prior instructions for Schedule B.

(90) IRM 3.11.3.23 Section revised to include both TY18 and later and TY17 and prior instructions for Schedule C.

(91) IRM 3.11.3.24 Section revised to include both TY18 and later and TY17 and prior instructions for Schedule D.

(92) IRM 3.11.3.25 Section revised to include both TY18 and later and TY17 and prior instructions for Schedule E.

(93) IRM 3.11.3.26 Section revised to include both TY18 and later and TY17 and prior instructions for Schedule F.

(94) IRM 3.11.3.28 Section revised to include both TY18 and later and TY17 and prior instructions for Schedule SE.

(95) IRM 3.11.3.29 Section revised to include both TY18 and later and TY17 and prior instructions for Form 1116.

(96) IRM 3.11.3.31 Section revised to include both TY18 and later and TY17 and prior instructions for Form 2210.

(97) IRM 3.11.3.32 Section revised to include both TY18 and later and TY17 and prior instructions for Form 2441.

(98) IRM 3.11.3.33 Section revised to include both TY18 and later and TY17 and prior instructions for Form 3800.

(99) IRM 3.11.3.34 Section revised to include both TY18 and later and TY17 and prior instructions for Form 4136.

(100) IRM 3.11.3.35 Section revised to include both TY18 and later and TY17 and prior instructions for Form 4137.

(101) IRM 3.11.3.36 Section revised to include both TY18 and later and TY17 and prior instructions for Form 4684.

(102) IRM 3.11.3.37 Section revised to include both TY18 and later and TY17 and prior instructions for Form 4797.

(103) IRM 3.11.3.38 Section revised to include both TY18 and later and TY17 and prior instructions for Form 4972.

(104) IRM 3.11.3.39 Section revised to include both TY18 and later and TY17 and prior instructions for Form 5329.

(105) IRM 3.11.3.40 Section revised to include both TY18 and later and TY17 and prior instructions for Form 6198.

(106) IRM 3.11.3.41 Section revised to include both TY18 and later and TY17 and prior instructions for Form 6251.

(107) IRM 3.11.3.42 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8615.

(108) IRM 3.11.3.43 Section revised to include both TY18 and later and TY17 and prior instructions for Form 4835.

(109) IRM 3.11.3.44 Section revised, information moved from 3.11.3.64.3.2.27 for TY17 and prior instructions for Form 8834.

(110) IRM 3.11.3.45 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8839.

(111) IRM 3.11.3.46 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8853.

(112) IRM 3.11.3.47 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8814.

(113) IRM 3.11.3.48 Section revised to include both TY18 and later and TY17 and prior instructions for Schedule EIC.

(114) IRM 3.11.3.49 Section revised to include both TY18 and later and TY17 and prior instructions for Schedule H.

(115) IRM 3.11.3.50 Section revised for Schedule L prior year instructions.

(116) IRM 3.11.3.51 Section revised to include both TY18 and later and TY17 and prior instructions for Schedule 8812.

(117) IRM 3.11.3.52 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8606.

(118) IRM 3.11.3.53 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8863.

(119) IRM 3.11.3.52.2(2) Removed OUO from dollar amounts listed as unnecessary.

(120) IRM 3.11.3.54 Section revised to include both TY18 and later and TY17 and prior instructions for Form 4952.

(121) IRM 3.11.3.55 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8889.

(122) IRM 3.11.3.56 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8880.

(123) IRM 3.11.3.57 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8888.

(124) IRM 3.11.3.58 Section revised to include TY18 and later for Form 5405.

(125) IRM 3.11.3.59 Section revised to include TY17 and prior instructions for Form 5405.

(126) IRM 3.11.3.60 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8917.

(127) IRM 3.11.3.61 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8919.

(128) IRM 3.11.3.62 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8958.

(129) IRM 3.11.3.63 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8941.

(130) IRM 3.11.3.64 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8910.

(131) IRM 3.11.3.65 Section revised for Form 8913 all tax years.

(132) IRM 3.11.3.66 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8936.

(133) IRM 3.11.3.67 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8867.

(134) IRM 3.11.3.68 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8959.

(135) IRM 3.11.3.69 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8960.

(136) IRM 3.11.3.70 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8962.

(137) IRM 3.11.3.71 Section revised to include both TY18 and later and TY17 and prior instructions for Form 8965.

(138) IRM 3.11.3.72 Revised for Prior Year processing.

(139) IRM 3.11.3.73 Expanded instructions, TY2017 instructions for Forms 1040/1040A/1040EZ were moved to this section.

(140) IRM 3.11.3.73.1.1.1(2) Chart -Removed OUO designation as unnecessary.

(141) IRM 3.11.3.73.1.1.15(5) Chart - Removed OUO designation as unnecessary.

(142) IRM 3.11.3.3.3 Added Form 8917 information to (10) and (11).

(143) IRM 3.11.3.3.3(4) Deleted bullet for Form 4563, not applicable.

(144) IRM 3.11.3.3.3(10) Added Form 8917 (TY16 and prior) to the list of transcribed forms.

(145) IRM 3.11.3.3.7.1(2) Added Action Code 300 and the first priority Action Code for TY2017.

(146) IRM 3.11.3.4.2.7 Added new subsection for edit marks made by other IRS Functions.

(147) IRM 3.11.3.5.2.1(1) 3rd Bullet - Date revised to April 18th based on circumstances surrounding IRS computer issues for timely filing.

(148) IRM 3.11.3.5.2.1(2) Revised exception, added special instruction for Austin.

(149) IRM 3.11.3.5.2.1(2) Note - Added instruction to use an original signature on a CP59 below the jurat as a valid return signature.

(150) IRM 3.11.3.5.2.1(4) Revised (f) and deleted (g) to clarify the correct editing of the Action Trail.

(151) IRM 3.11.3.5.2.2(7) Exception - Rewrote to include instructions for corresponding when IRC 965 is noted on return.

(152) IRM 3.11.3.5.3.2(6) Added Form 1040 line 34 and Form 1040-A line 19 to chart.

(153) IRM 3.11.3.5.3.2(6) Added information for editing the caption when editing Action Code 640.

(154) IRM 3.11.3.5.3.2(6) Chart - Added to 1040A, line 42a and 1040EZ, line 8a instructions not to delete the line or edit RPC B when PYEI is noted in the line area.

(155) IRM 3.11.3.5.3.2(6) Chart - Added to line 66a instructions not to delete the line or edit RPC B when PYEI is noted in the line 66a area.

(156) IRM 3.11.3.5.3.2(6) Chart - Added CCC B to instruction for blank returns with no signature.

(157) IRM 3.11.3.5.3.2(6) Removed Line 34 information from 1st chart.

(158) IRM 3.11.3.5.3.2(6) Removed Line 19 information from 3rd chart.

(159) IRM 3.11.3.5.3.2(6) Revised the required action field for notation of Sec 965 when no IRC 965 Transition Tax Statement attached.

(160) IRM 3.11.3.6.1.1.1(1) Added "Sinai Peninsula" to chart.

(161) IRM 3.11.3.6.1.3 Added new (2) for TY16-TY17, SPC D editing instruction.

(162) IRM 3.11.3.6.1.3(2) Revised editing procedures for SPC D.

(163) IRM 3.11.3.6.1.6(4) Added "signatures" to instructions.

(164) IRM 3.11.3.6.1.7 Removed all references to Operation Mass Mailing (OMM).

(165) IRM 3.11.3.6.2.3(1) Added instruction to edit CCC B when editing RPC L and revised Reminder removing instruction not to edit CCC B.

(166) IRM 3.11.3.6.2.3(1) Exception - Deleted first sentence as no longer applicable.

(167) IRM 3.11.3.6.2.6 Rewrote (1) and (2) with new instructions for proper handling of returns with blocked or deferred income.

(168) IRM 3.11.3.6.2.10(1) Revised TY17 instruction with instructions for TY15-TY17.

(169) IRM 3.11.3.6.2.11(2) Corrected to say route to ICT and (6) added instructions for processing with a TC150 and without a TC150.

(170) IRM 3.11.3.6.2.13(1) Added letter signed by Competent Authority (in lieu of Form 1042-S) to list.

(171) IRM 3.11.3.6.2.13(1) Removed Form 8891 from list as obsolete.

(172) IRM 3.11.3.6.2.17(6) Deleted as no longer applicable.

(173) IRM 3.11.3.6.2.20(3) Note - Removed the "Do Not Edit" and replaced with "Edit" .

(174) IRM 3.11.3.6.2.20(6) Added instruction to edit CCC B.

(175) IRM 3.11.3.8.2.1 Added "or typed" to (1) and (2).

(176) IRM 3.11.3.8.2(3) Revised noted to clarify editing correct received date.

(177) IRM 3.11.3.8.3 Dates revised to April 18th based on circumstances surrounding IRS computer issues for timely filing.

(178) IRM 3.11.3.8.4(5) Chart - Dates revised based on circumstances surrounding IRS computer issues for timely filing.

(179) IRM 3.11.3.8.5(3) Dates revised based on circumstances surrounding IRS computer issues for timely filing.

(180) IRM 3.11.3.8.6(4) Date revised based on circumstances surrounding IRS computer issues for timely filing.

(181) IRM 3.11.3.9.2.1(4) Revised Exception to Reminder and added information regarding newly assigned ITINs.

(182) IRM 3.11.3.13.2.2.3(3)(b) Added "6001A" to the note.

(183) IRM 3.11.3.13.2.2.3(3) b Added note regarding Xing exemption position 3.

(184) IRM 3.11.3.13.3.1.1(2) Exception - Dates revised based on circumstances surrounding IRS computer issues for timely filing.

(185) IRM 3.11.3.14.1(1) Added instruction to also edit CCC B.

(186) IRM 3.11.3.14.2.15(2) Chart - Added "Section 965" to chart with instruction to edit RPC "F" and Action Code "300" .

(187) IRM 3.11.3.14.2.15(2) Chart - Revised with updated editing/correspondence instructions for IRC 965.

(188) IRM 3.11.3.14.3.10 Removed all instructions and Reserved Section for future use.

(189) IRM 3.11.3.14.3.10 Added Tuition and Fee instruction for Form 1040 line 34.

(190) IRM 3.11.3.14.3.12(1) Added USOC to list and removed Clean Fuel Vehicles.

(191) IRM 3.11.3.14.3.12(5) Updated Unallowable Code 99 definition.

(192) IRM 3.11.3.14.4.3(1) b Removed "hurricane" and replaced with "disaster" .

(193) IRM 3.11.3.14.4.3(1) Added new (b) to list with correspondence instructions for Line 40 for TY16 or TY17.

(194) IRM 3.11.3.14.4.5 Added new (2) for line 44 with box "c" marked with "965" noted.

(195) IRM 3.11.3.14.4.5(2) Revised 2nd bullet with a tolerance for correspondence.

(196) IRM 3.11.3.14.4.5(2) Revised with specific editing/correspondence instructions for IRC 965.

(197) IRM 3.11.3.14.6.7(3) Removed exception below chart as no longer applicable.

(198) IRM 3.11.3.14.7.1(4) Deleted (4) as no longer applicable and renumbered subsequent paragraph.

(199) IRM 3.11.3.14.7.3(5) Note - Added that it is not necessary to research source of earned income when corresponding for other missing information.

(200) IRM 3.11.3.14.7.3(5) Exception - Revised Exception by adding information not to correspond when PYEI is noted in the line 66a area.

(201) IRM 3.11.3.14.7.3(5) Note - Removed as no longer applicable.

(202) IRM 3.11.3.14.7.3(5) Added new note with information regards to the 2017 hurricanes and the use of PYEI.

(203) IRM 3.11.3.14.7.11(1) Chart - Expanded instruction for line 73 with box d marked.

(204) IRM 3.11.3.14.7.11(1) Chart - Added instructions for box "d" marked with "TAX" noted.

(205) IRM 3.11.3.14.7.11(1) Chart - Added instruction to edit CCC P in regard to entry on line 73 with box d marked for IRC 965.

(206) IRM 3.11.3.14.7.11(1) Chart - Revised with specific editing/correspondence instructions for IRC 965.

(207) IRM 3.11.3.14.7.11(4) Added information in regards to letter of Competent Authority and Form 1042-S.

(208) IRM 3.11.3.14.7.12(1) Corrected chart by adding Row 3 and Row 4 which were previously deleted in error.

(209) IRM 3.11.3.14.10(2) Added exception for disaster returns.

(210) IRM 3.11.3.14.13(2) Revised the last box in chart to add instructions to follow taxpayer's intent.

(211) IRM 3.11.3.14.13.3(1) Note - Added the word domestic to the description for a complete phone number.

(212) IRM 3.11.3.15.1(7) Chart - Revised the definition for Unallowable Code 99.

(213) IRM 3.11.3.15.11(1) Removed "hurricane" from 3rd and 4th bullets.

(214) IRM 3.11.3.15.11(1) Added 2 new bullets to list of expenses that can be deducted on line 28.

(215) IRM 3.11.3.15.11(5) Removed the word "hurricane" from the paragraph.

(216) IRM 3.11.3.15.11(5) Added new (5) with instructions for editing when Hurricane Disaster Relief is noted on line 28.

(217) IRM 3.11.3.17.1(5) Exception - Removed instruction to edit RPC S.

(218) IRM 3.11.3.17.6(1) Added to list information regarding Amish and Mennonite.

(219) IRM 3.11.3.17.6(1) Deleted (a) from the list as no longer applicable.

(220) IRM 3.11.3.17.6(2) Deleted (a) from the list as no longer applicable.

(221) IRM 3.11.3.20.1(6) Chart - 2nd box, 1st bullet added Schedule C-EZ and removed 2nd bullet as obsolete.

(222) IRM 3.11.3.25.2(7) Corrected Document 7071 to be Document 7071-A.

(223) IRM 3.11.3.26.1(6) Note - Revised tolerance amount to be $1,500.

(224) IRM 3.11.3.29.1 Revised Form 4684 instructions.

(225) IRM 3.11.3.38.2(3) Deleted (3) as obsolete and renumbered subsequent paragraphs accordingly.

(226) IRM 3.11.3.40(2) Added note not to delete schedule with T-lines present.

(227) IRM 3.11.3.41.14 Dates revised based on circumstances surrounding IRS computer issues for timely filing.

(228) IRM 3.11.3.43.3 Added new subsection for new line 15c, Form 8606.

(229) IRM 3.11.3.47(3) Added instruction to delete forms not used.

(230) IRM 3.11.3.50 Deleted instructions for 2017 Form 8917, reserved the subsection and added reference for TY16 and prior.

(231) IRM 3.11.3.50 Revised Form 8917 instructions.

(232) IRM 3.11.3.52(2) Added note not to delete form with T-lines present.

(233) IRM 3.11.3.54(5) Deleted as not longer applicable (UAC 78), and renumbered subsequent paragraph.

(234) IRM 3.11.3.55(4) Deleted as not longer applicable (UAC 78), and renumbered subsequent paragraph.

(235) IRM 3.11.3.56(2) Added note not to delete form with T-lines present.

(236) IRM 3.11.3.60(3) Reworded to say not to delete form with T-lines present and combined note into paragraph, deleted note.

(237) IRM 3.11.3.61.1(2) Added instruction to edit CCC B when editing RPC L and deleted Note as no longer applicable.

(238) IRM 3.11.3.61.1.1(3) Exception - Added special conditions for Schedule A.

(239) IRM 3.11.3.61.2.13 Added Tuition and Fee instruction for Form 1040-A line 19.

(240) IRM 3.11.3.61.2.13 Removed all line 19 instructions and reserved subsection for future use.

(241) IRM 3.11.3.61.3.11(2) Deleted exception, no longer applicable.

(242) IRM 3.11.3.61.3.12(4) - Deleted as no longer applicable and renumbered subsequent paragraph.

(243) IRM 3.11.3.61.3.14(5) Note - Added that it is not necessary to research source of earned income when corresponding for other missing information.

(244) IRM 3.11.3.61.3.14(5) Exception - Revised to indicated not to correspond for source of earned income when PYEI is noted.

(245) IRM 3.11.3.61.3.14(5) Deleted 2nd note regarding PYEI and SPC D.

(246) IRM 3.11.3.61.3.14(5) Added new note with information regards to the 2017 hurricanes and the use of PYEI.

(247) IRM 3.11.3.61.3.24 Deleted (5) and (6) as unnecessary, corrected Form 1040 to be 1040A and removed reference to Form 2210F.

(248) IRM 3.11.3.62.1(1) Added instruction to edit CCC B when editing RPC L and deleted Note as no longer applicable.

(249) IRM 3.11.3.62.9(2) Exception - Revised to indicated not to correspond for source of earned income when PYEI is noted.

(250) IRM 3.11.3.62.9(2) Note - Added that it is not necessary to research source of earned income when corresponding for other missing information.

(251) IRM 3.11.3.62.9(3) Removed "Schedule EIC" as not applicable.

(252) IRM 3.11.3.62.9(3) Deleted 2nd note regarding PYEI and SPC D.

(253) IRM 3.11.3.62.9(3) Added new note with information regards to the 2017 hurricanes and the use of PYEI.

(254) IRM 3.11.3.62.12(1) Deleted exception, no longer applicable.

(255) IRM 3.11.3.64.3.1.2.5 Added new paragraphs (1-3) with prior year instructions for line 34 and renumbered current paragraph accordingly.

(256) IRM 3.11.3.64.3.1.8(3) Deleted (b) in regard to Unallowable Code 78 from list and relettered subsequent entries accordingly.

(257) IRM 3.11.3.64.3.2.24(7) Deleted as redundant.

(258) IRM 3.11.3.64.3.2.37 Added (1) with prior year instructions for Form 8917 and renumber subsequent paragraph.

(259) IRM 3.11.3.64.3.3.6 Added new paragraphs (1-3) for prior year editing of line 19, Form 1040A and renumbered subsequent paragraph.

(260) Exhibit 3.11.3-1 Added instructions for Form 461, Form 5329, Form 8990, Form 8991, Form 8992, and form 8994. Also updated/revised all information as necessary for processing year 2019.

(261) Exhibit 3.11.3-1 Revised Letters 4883C, 5071C, and 5447C/5447C SP.

(262) Exhibit 3.11.3-1 Revised instruction for Form 13441-A and added see also to IRC 965 statement referencing IRM 3.11.3.14.7.11.

(263) Exhibit 3.11.3-1 Updated Fresno CSCO Stop Number to 81105 throughout.

(264) Exhibit 3.11.3-1 - Added Austin routing information to CP 63, removed FSPC and added instruction not to detach CP 59 if being used as support for valid signature on return.

(265) Exhibit 3.11.3-1 Added Form 1042-S, Copy A to chart and existing Form 1042-S revised to read Form 1042-S, Copy B, C, D or E.

(266) Exhibit 3.11.3-1 Added note to Form 1042-S regarding letter signed by Competent Authority.

(267) Exhibit 3.11.3-1 Revised Form 8891, Changed Form 8914 to removed Hurricane Katrina and add disaster, and revised Form 8915 to be 8915a/8915b for Qualified Disaster instead of Hurricanes.

(268) Exhibit 3.11.3-1 Revised Form 56 and Form 8822 with instructions to keep forms together when routing to Entity.

(269) Exhibit 3.11.3-1 Revised Form 5884-A, added ACA letters 6000, 6001, and 6002.

(270) Exhibit 3.11.3-1 Added "IRC 965 Transition Tax Statement" or similar statement to the Attachment Guide.

(271) Exhibit 3.11.3-2 Revised to add Action Code 300 as the first priority.

(272) Exhibit 3.11.3-2 Added Action Code "300" to the chart for In-House suspense.

(273) Exhibit 3.11.3-5 Added RPC "F" and definition, to the chart.

(274) Exhibit 3.11.3-5 Revised RPC F explanation and added new RPC U.

(275) Exhibit 3.11.3-6 Added new SPC codes Q, R, W, and X.

(276) Exhibit 3.11.3-6 - Corrected the line number referenced in SPC K explanation.

(277) Exhibit 3.11.3-6 Amended definition for SPC D.

(278) Exhibit 3.11.3-6 Added new SPC D to chart for notations of 2017 Hurricanes.

(279) Exhibit 3.11.3-7 Added new unallowable code 83.

(280) Exhibit 3.11.3-7 Removed UA 61 from the chart, no longer valid code.

(281) Exhibit 3.11.3-7 Revised definition for Unallowable Code 99, deleted UAC 60 and 87, and revised UAC 77 tolerance amount.

(282) Exhibit 3.11.3-8 Corrected the date in #12.

(283) Exhibit 3.11.3-12 Removed all references to Operation Mass Mailing from exhibit.

(284) Exhibit 3.11.3-12 Marked Conditions 1 through 12 as OUO.

(285) Exhibit 3.11.3-14 Corrected acronyms for Prep. TIN (PTIN) and RRTA.

(286) Exhibit 3.11.3-17 Revised Fill In list to include new paragraph #56 for use when corresponding for IRC 965 Transition Tax Statement.

(287) Exhibit 3.11.3-17 Revised fill-in paragraph (47) and added new fill-in paragraph (55).

Effect on Other Documents

IRM 3.11.3, Individual Income Tax Returns, dated November 17, 2017 (effective January 1, 2018), is superseded. This IRM also incorporates the following IRM Procedural Updates (IPUs) issued between January 2018 through October 2018: 18U0014, 18U0127, 18U0155, 18U0174, 18U0226, 18U0243, 18U0273, 18U0285, 18U0303, 18U0317, 18U0440, 18U0483, 18U0550, 18U0575, 18U0599, 18U0646, 18U0676, 18U0757, 18U0985, 18U1020, 18U1244.

Audience

Wage and Investment, Code and Edit Tax Examiners

Effective Date

(01-01-2019)

Linda J Brown
Director, Submission Processing
Wage and Investment Division

Program Scope and Objectives

  1. Purpose: The Document Perfection Operation, Code & Edit Unit, prepares paper returns for processing by reviewing and editing the documents with specialized processing codes for use downstream.

  2. Audience: Tax examiners in Wage and Investment Division (W&I), Submission Processing Service Centers, Code & Edit Units are the primary users of this IRM.

  3. Policy Owner: The Director of Submission Processing is responsible for the policies in this IRM.

  4. 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.

  5. Primary Stakeholders: Submission Processing (SP).

Background

  1. This section of the Internal Revenue Manual (IRM) provides instructions for coding and editing individual income tax returns for computer processing. Special codes are entered into the computer to perform specific functions. Editing is necessary because many returns are incomplete, contain invalid or misplaced entries or are computed incorrectly.

  2. Instructions in this manual are for Form 1040, Form 1040A, Form 1040EZ and attachments to the return.

Authority

  1. Authority for these procedures is found in the following sections of the Internal Revenue Code and their corresponding Treasury regulations:

    • IRC 6201(a)

    • IRC 6213(b)

    • IRC 6402(a)

    • IRC 6511

Responsibilities

  1. The Director, SP Office is responsible for monitoring operational performance for the Submission Processing campus.

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

  3. The team manager/lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.

  4. The team employees are responsible for following the instructions contained in this IRM and maintaining updated IRM procedures.

Program Objectives and Review

  1. Program Goals: To timely review and edit all returns received in Code & Edit (C&E).

  2. Program Reports: The Monitoring Section under Submission Processing Program Management/Process Assurance monitors the Code & Edit reports.

  3. Program Effectiveness: The program goals are measured by the following reviews:

    • Embedded Quality Submission Processing (EQSP)

    • Balanced Measures

    • Managerial Reviews

  4. Annual Review: The processes included in this manual are reviewed annually to ensure accuracy and promote consistent tax administration.

Terms/Definitions/Acronyms

  1. See Exhibit 3.11.3-14 for a glossary of frequently used terms and acronym listing.

Related Resources

  1. Job Aid 2431-009, Coding & Editing Individual Income Tax Returns - Current Year Job Aid Form 1040 and Job Aid 2431-010, Coding & Editing Individual Income Tax Returns - Prior Year Job Aid Form 1040, Form 1040A, and Form 1040EZ, were developed as reference guides for this manual. This manual refers the tax examiner to clarifying information or exhibits in the Job Aid, where appropriate. When a conflict between any referenced material and the IRM instructions occur, the IRM instructions take precedence.

General Guidelines

  1. Instructions in this manual are for a typical return. Apply the instructions as far as possible when a situation is not explained.

  2. Take no action when there is not a specific instruction for a situation.

  3. Refer conflicts between general and specific instructions, unusual situations, and complex cases to your work leader.

  4. Any line in this manual which is marked with a "#" is for official use only and must not be disclosed.

  5. IRM deviations must be submitted in writing following the instructions in IRM 1.11.2.2, Internal Management Documents System - Internal Revenue Manual (IRM) Process - IRM Standards, and elevated through appropriate channels for executive approval.

  6. The general guidelines described in more detail in this subsection of the manual are:

    • Programs worked in Code & Edit

    • Identifying "numbered" and "unnumbered" returns

    • Routing completed work

Programs Worked

  1. Code & Edit works the Form 1040, Form 1040A and Form 1040EZ programs listed below:

    Program Code Description
    4311X Other-than-full-paid Forms 1040
    43210 Full-paid Forms 1040
    4411X Other-than-full-paid Forms 1040A (TY17 and prior Only)
       
    4713X Other-than-full-paid Forms 1040EZ (TY17 and prior Only)
       
  2. Austin also works the following ITIN programs:

    • 4317X - Forms 1040

    • 4417X - Forms 1040A (TY17 and prior Only)

    • 4716X - Forms 1040EZ (TY17 and prior Only)

Identifying "Numbered" and "Unnumbered" Returns

  1. A "numbered" return has a fourteen-digit Document Locator Number (DLN) imprinted in the top right margin. Do not remove a numbered return from block.

  2. An "unnumbered" return has no DLN. These documents are numbered after coding and editing. Unnumbered returns may be removed from the block, as instructed.

Document Locator Number (DLN)
  1. DLNs are unique numbers assigned to every return processed by the Automatic Data Processing (ADP) Systems. The DLN is used to control, identify, and locate the document.

  2. The sixth, seventh, and eighth digits in the DLN make up the Julian date.

    1. The Julian date is the numeric day of the year. For example, April 15, 2019, is Julian date 105, which is the 105th day of 2019.

  3. The twelfth and thirteenth digits of the DLN are the serial number.

    1. Returns in a block are numbered from "00" to "99" . The maximum number of returns in a numbered block is 100.

    2. Numbered returns in a block must be kept in serial number order.

Routing Completed Work

  1. After coding and editing:

    If returns are Then
    Numbered and blocked, Send them to be transcribed.
    Unnumbered and not blocked, Send them to be numbered and blocked.

General Instructions

  1. The general instructions for all Form 1040-series returns are provided here. The general instructions in this section include:

    • Perfecting transcription lines

    • Identifying the transcribed forms and schedules by sequence code

    • Preparing Form 3471 - Edit Sheet and Form 4227 - Intra-SC Reject or Routing Slip

    • Editing "Action Trails"

    • Handling attachments to returns

    • Editing special processing and unallowable codes

Stamping Tax Examiner (TE) Numbers

  1. Every Code & Edit Tax Examiner (TE) is assigned a unique TE Number.

  2. Stamp your TE number in the upper left-hand corner of the document. All returns must be stamped with your TE number.

    Exception:

    It is only necessary to stamp the first document in a block when working numbered returns.

  3. Stamp your TE number in the upper left-hand corner of all detached documents.

    Exception:

    Do not stamp your TE number on original documents that are being mailed back to the taxpayer.

  4. Line through the TE number when corresponding and the return is going to be sent back to the taxpayer.

  5. Line through your TE number when re-batching an un-coded return.

  6. Line through the old TE number and stamp the document with your TE number when working returns which were TE stamped before (e.g., mis-blocked, converted or correspondence returns).

Transcription Lines (T-Lines) and Transcription Compute Lines (T-Compute Lines)

  1. Not all entries on forms and schedules are entered into the computer during processing. Only the information from transcription lines (T-Lines) or computed transcription lines (T-Compute Lines) is entered into the computer after coding and editing.

  2. T-Lines and T-Compute Lines are listed in this manual in the overview information for each form or schedule. The edited locations of all T-Lines and T-Compute Lines are illustrated in Job Aid 2431-009 and Job Aid 2431-010.

  3. Always compute and edit a T-Compute Line when it is blank and there are entries leading to a total. Compute and edit a T-Compute Line that is not blank only when required to do so in the line-by-line instructions.

  4. Use the tax form instructions when computing T-Compute Line totals unless other directions are provided in the line-by-line instructions.

  5. Edit T-Line and T-Compute line amounts when they are illegible, obviously misplaced, or when instructed to do so in the line-by-line instructions.

  6. Correct the entry by referring to other schedules, attachments, or entries on the return only when directed.

  7. Delete an entry on a transcribed line when the meaning of the line has been changed, unless otherwise instructed. (See Figure 3.11.3-1).

  8. Delete an obviously misplaced amount and edit to the correct T-Line or T-Compute Line, when appropriate. (See Figure 3.11.3-1b).

  9. Use attachments to prepare "dummy" forms or schedules when they are required to support entries on transcribed lines.

  10. Edit the combined total of the amounts when a T-Line or T-Compute Line has multiple entries. See Figure 3.11.3-2.

  11. Do not math verify the transcribed lines on forms or schedules, unless specifically directed to do so in the line-by-line instructions.

  12. Edit line numbers for T-lines that contain significant entries when line numbers are missing or incomplete.

    Figure 3.11.3-1

    This is an Image: 33440001.gif
     

    Please click here for the text description of the image.

    Figure 3.11.3-2

    This is an Image: 33440002.gif
     

    Please click here for the text description of the image.

Transcribed Schedules and Forms

  1. In the upper-right margin of each form or schedule is a preprinted number called a sequence code. The Integrated Submission and Remittance Processing (ISRP) operators transcribe forms and schedules by their sequence code. The transcribed sequence codes range from 02 through 75. See the tables at the end of this subsection for a list of the sequence codes for all transcribed schedules and forms. Any document not on the list is not a transcribed form or schedule. Any form or schedule within this sequence code range that is not transcribed must be deleted.

  2. Delete any form, schedule or document that will not be transcribed when there is a transcribed form or schedule afterward. Leave all non-transcribable forms/schedules intact after the last transcribed page.

    Exception:

    For Form 8938, Statement of Specified Foreign Financial Assets, instructions, refer to IRM 3.11.3.6.2.10.

  3. When a return has a large number of non-transcribable forms, "X" the top page and combine the remaining pages together with a rubber band, staple, or clip.

    Note:

    When instructed to "X" the page, edit the "X" across the entire page.

  4. Delete any form that shares a sequence code with a transcribed form.

    Note:

    Examples include, but are not limited to the following:
    - Form 2106 (Seq. 54) (TY07 and prior)
    - Form 3468 (Seq. 52) (TY09 and prior)
    - Form 3903 (Seq. 62) (TY10 and prior)
    - Form 5884-B (Seq. 65)
    - Form 8621 (Seq. 69)
    - Form 8801 (Seq. 74)
    - Form 8829 (Seq. 66) (TY09 and prior)
    - Form 8862 (Seq. 43A)
    - Form 8949 (Seq. 12A)
    - Schedule D-1 (Seq. 12A) (TY10 and prior)

  5. "X" a transcribed schedule or form if it is blank or has no significant T-line entries, unless specifically instructed otherwise.

    Exception:

    Do not "X" Form 8938 when there are no significant entries on T-Lines.

  6. If a non-transcribable form or schedule is found between pages 1 and 2 of Form 1040 or TY17 and prior Form 1040A, fold or delete the page. If a form or schedule is found with significant T-line entries, move it from between pages 1 and 2.

  7. For transcribed forms or schedules with multiple pages, rearrange the pages so they are together and in the proper order (page 1, page 2, etc.).

  8. Delete duplicate forms or schedules with the exact same amounts that are filed for the same taxpayer.

  9. Arrange Schedules 1 through 6 in sequential order behind Form 1040.

  10. Leave Forms W-2 and 1099, Form 1040-V, taxpayer statements, deposit slips, small forms, and other items where found when they do not obstruct T-lines or any part of the caption area.

  11. The following forms and schedules are valid transcribed attachments for Form 1040:

    Transcribed Form or Schedule Sequence Code
    Schedule 1 01
    Schedule 2 02
    Schedule 3 03
    Schedule 4 04
    Schedule 5 05
    Schedule 6 05a
    Schedule A 07
    Schedule B 08
    Schedule C/C-EZ 09, 10, 11
    Schedule D 12
    Schedule E 13
    Schedule F 14, 15
    Schedule R 16
    Schedule SE 17, 18
    Form 1116 19
    Schedule J 20
    Form 2441 21
    Form 3800 22
    Form 4136 23
    Form 4137 24, 25
    Form 4684 26
    Form 4797 27
    Form 4972 28
    Form 5329 29, 30
    Form 6198 31
    Form 6251 32
    Form 8615 33
    Form 4835 37
    Form 8839 38
    Form 8853 39
    Form 8814 40, 41, 42
    Schedule EIC 43
    Schedule H 44, 45
    Schedule 8812
    Form 8812 (TY2011 and prior)
    47
    Form 8606 48, 49
    Form 8863 50
    Form 4952 51
    Form 8889 52, 53
    Form 8880 54
    Form 8888 56
    Form 5405 58, 59
    Form 8917 60
    Form 8919 61, 62
    Form 8958 63
    Form 8941 65, 66
    Form 8910 68
    Form 8936 69
    Form 8867 70
    Form 8959 71
    Form 8960 72
    Form 8962 73, 74
    Form 8965 75
    Form 8938 175
  12. The following forms and schedules are valid transcribed attachments for TY17 and prior Form 1040A:

    Transcribed Form or Schedule Sequence Code
    Schedule B 08
    Schedule R 16
    Form 2441 21
    Form 8615 33
    Schedule EIC 43
    Schedule 8812
    Form 8812 (TY2011 and prior)
    47
    Form 8606 48, 49
    Form 8863 50
    Form 8880 54
    Form 8888 56
    Form 8867 70
    Form 8917 60
    Form 8962 73, 74
    Form 8965 75
  13. The following forms are valid transcribed attachments for TY17 and prior Form 1040EZ:

    Transcribed Form Sequence Code
    Form 8888 56
    Form 8867 70
    Form 8965 75

Internal-Use Forms 3471 and 4227

  1. Code and Edit uses the following two general internal-use forms:

    • Form 3471, Edit Sheet

    • Form 4227, Intra-SC Reject or Routing Slip

  2. The conditions requiring use of these forms are found in the line-by-line instructions.

Form 3471 - Edit Sheet
  1. Form 3471, Edit Sheet, is transcribed as sequence code number “02”.

  2. Edit money amounts on Form 3471 in dollars only for all form types (1040/A/EZ).

  3. Staple Form 3471 to the left side margin of page 1 below the caption area or as noted below:

    1. TY17 and prior, Form 1040 or Form 1040A, below the filing status area.

      Note:

      If using Form 3471-E, staple it to the back of the return facing out.

  4. Edit Form 3471 as follows:

    Form 3471 Action
    Lines 1, 2 and 3 - Unallowable Codes and amounts
    1. Edit all Unallowable Codes in the order found.

    2. When there are more than three unallowables, edit the first two on lines 1 and 2, and Unallowable Code "98" on line 3 with no money amount. Edit the remaining Unallowable Codes and amounts in the Processing Memo space.

      Note:

      For more information on Unallowable Codes, refer to IRM 3.11.3.3.7.6.

    Line 6, Late filing code

    Returns may be received from Examination or Collection with penalty and interest amounts entered. These amounts will usually be present on Form 4364, Delinquency Computations.

    Note:

    Use the instructions in IRM 3.11.3.14.3.5 when penalty and interest amounts are entered by the taxpayer.

    1. Edit "1" when Failure to File (FTF) or Failure to Pay (FTP) penalties or interest have been entered on a full or part-paid return and≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡

    2. Also edit a received date ≡ ≡ "≡ ≡ ≡ ≡ ≡ " in this case.

    Note:

    for more information see the line-by-line instructions for returns received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Line 7, Pre-delinquent penalty Edit an amount when both of the following apply:
    1. The return has a received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. There is a notation this penalty is to be applied.

    Line 11, ID number penalty Edit "50" when there is a notation on the return this penalty is to be assessed and an amount is present.

    Note:

    Examination or Collection will indicate when this penalty is to be assessed.

Form 4227 - Intra-SC Reject or Routing Slip
  1. Some returns need research, referral, or action before they can be processed. Form 4227, Intra-SC Reject or Routing Slip, is often used to identify these special conditions and initiate actions.

  2. Take the following actions when a numbered return needs research, referral, or action before further processing:

    1. Edit the appropriate Action Code.

    2. Prepare Form 4227 and note the reason for rejection.

    3. Staple below the caption area of return.

    4. Leave the return in the block.

  3. Prepare Form 4227 when an unnumbered return/document is withdrawn from processing, and:

    If the return/document is Then
    Leaving the campus, Pull the document for routing to Receipt and Control for shipment to appropriate campus.
    Not leaving the campus, Pull the document for routing to the appropriate function.

Action Trail

  1. An "Action Trail" is written on a return/document as a record of the actions taken.

  2. Always leave an Action Trail when Computer Condition Code "Y" is edited. Give the reason for the "Y" code in the Action Trail.

  3. Edit an Action Trail when a return/document is detached. For example, notations such as "detached 1040X" or "detached taxpayer correspondence" must be made.

  4. The Action Trail is written on Form 1040, Form 1040A or Form 1040EZ in the lower-left margin of page 1. Refer to Job Aid 2431-009 and Job Aid 2431-010 for an illustration of the editing location.

Attachments to Return

  1. Examine all attachments to the return. Leave the attachments with the return unless specifically instructed otherwise. Refer to the Attachment Guide in Exhibit 3.11.3-1 for specific attachment-by-attachment instructions. Research either an attachment or a notation on the return, as appropriate.

  2. Immediately hand carry any discovered remittance to the manager or work leader. (Manager/work leader shall refer to IRM 3.8.46, Discovered Remittance).

  3. Take either of the following actions when there is a notation on the return that indicates it needs to be routed elsewhere:

    1. Edit the information on a blank piece of paper.

    2. Photocopy the notation.

  4. Generally, all taxpayer-initiated correspondence must be responded to within 30 days.

    1. Detach and route all correspondence addressing an issue not directly related to the processing of the return.

      Note:

      Examples include, "I didn't receive my refund last year" , or "I need a payment plan" , etc.

    2. Do not detach correspondence attached to an original return which asks a question or raises an issue about the processing of the return or if the correspondence contains only a general comment submitted with a payment.

      Note:

      Examples include, "Here is my payment" , "I will pay you in two months" , or "Apply my refund to the amount that I owe from last year" , etc.

  5. Route to Examination any taxpayer-initiated correspondence related to Earned Income Credit (EIC) fraud. Use Form 4227 and notate "EIC fraud informant" . Correspondence that must be routed to Examination will state the following:

    1. The taxpayer was unable to file electronically because another taxpayer had already filed and claimed the same qualifying dependents / exemption(s), and/or

    2. The name and/or social security number of the other taxpayer involved.

  6. Route any taxpayer-initiated correspondence from an informant claiming they know of an individual or business who is not claiming the proper amount of income on a tax return or filed a Form 3949-A, Information Referral, to Fresno (FSPC), Stop 31313 following PII guidelines.

  7. When a taxpayer submits a credit card and/or credit card number, fully code and edit the return and immediately take the return and all attachments to your work leader. The work leader will:

    1. Edit Action Code "460" , sanitize any credit card information on the return and continue processing.

    2. If a credit card is attached, prepare Form 4287, Record of Discovered Remittances, a photocopy of page one of the return, and route to Receipt & Control with the credit card to be returned to the taxpayer via Express Mail.

    3. Prepare Letter 3956C, Processing Form 1040 Received with Credit Card/Credit Card Information and send to the taxpayer via 1st Class Mail.

    Note:

    Do not take return to your work leader when you can determine the number written on the return is the confirmation number for the credit card payment (not the actual credit card number).

  8. Credit card payment returns must be batched as remittance returns so they will receive the remittance indicator. If the return is received with a credit card confirmation number and no amount is indicated, or the amount does not match the balance due line on the return, batch as Part Paid.

Detached Documents
  1. Always edit an Action Trail on the return when an attachment is removed. For example, when a form or letter is detached from a return, edit notations such as "detached 9465" or "detached TP correspondence" .

  2. Also, edit an Action Trail on the detached document unless it's an original document. If present on the return, all the following must be present or edited on all detached items:

    • Current date if before ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , otherwise use the received date in "MMDDYY" format.

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on a timely return with no received date, edit a date of "041519" .

    • Tax period in "YYMM" format.

    • Form from which detached.

    • Taxpayer's name(s).

    • Primary/secondary taxpayer's identification number(s).

    • Taxpayer's address.

    Note:

    When sending a return back to a taxpayer, do not detach any documents.

    Exception:

    Detach and process any remittance. Do not mail back a remittance to the taxpayer.

  3. Internally route detached items using Form 4227.

  4. When returning original documents back to the taxpayer, the work leader will complete and attach Form 14219, Return of Documentation to the Taxpayer. Check the appropriate box on Form 14219 to Identify the returned item.

Processing Codes

  1. Certain conditions require the editing of processing codes. There are six types of processing codes. They are:

    • Action Code

    • Audit Code

    • Computer Condition Code (CCC)

    • Return Processing Code (RPC)

    • Special Processing Code (SPC)

    • Unallowable Code (UAC)

  2. Processing codes may be either alpha or numeric. Use CAPITAL BLOCK LETTERS when editing codes that are alphas.

  3. It is critical that processing codes are edited legibly.

  4. Refer to Job Aid 2431-009 and Job Aid 2431-010 for an illustration of the editing locations of processing codes. The edited location of these codes may vary by return type.

  5. When other functions have edited CCCs, RPCs, SPCs, etc., in the wrong location, delete the coding and edit it to the correct location.

  6. Re-edit any valid black edit marks in red on photocopied returns, unless editing is underlined in red.

  7. The conditions for editing processing codes are located in the line-by-line instructions.

Action Code
  1. An Action Code is a three-digit numeric character used to reject a document and identify the reason for rejection.

  2. Assign only one Action Code to a document. Edit Action Codes in the following priority:

    1. "300"

    2. "310"

    3. "4XX"

    4. "6XX"

    5. "2XX"

    6. "3XX"

  3. Continue perfecting returns assigned any Action Code except "480" or "6XX" . Edit only the caption area when Action Code "6XX" is edited. When editing Action Code 480 edit the caption area and see IRM 3.11.3.7.5.

  4. Edit the Action Code in the center of the bottom margin on page 1 of Form 1040 (current and prior year), Form 1040A or Form 1040EZ (TY17 and prior).

  5. Refer to the table in Exhibit 3.11.3-2 for an explanation of each Action Code.

Audit Code
  1. An Audit Code is an alpha or numeric character used to identify questionable conditions for Examination.

  2. Edit Audit Codes horizontally in the right-bottom margin on page 1 of Form 1040 (current and prior year), Form 1040A or Form 1040EZ.

  3. Refer to the table in Exhibit 3.11.3-3 for the explanation of each Audit Code.

Computer Condition Code (CCC)
  1. A Computer Condition Code (CCC) is an alpha or numeric character used to alert the computer and Master File of a special condition. Computer Condition Codes will post to the Master File.

  2. When CCC "3" is edited, it must be first.

  3. Always edit an Action Trail when CCC "Y" is edited.

  4. Edit the CCC horizontally in the following location on:

    1. TY18 and later Form 1040 - blank area below "Spouse was born before January 2, 1954" .

    2. TY17 and prior Form 1040 or Form 1040A - in the upper-center portion of the filing status area.

    3. TY17 and prior Form 1040EZ - to the left of line 1, under "Foreign Province/State/County."

  5. Refer to the table in Exhibit 3.11.3-4 for an explanation of each CCC.

Return Processing Code (RPC)
  1. A Return Processing Code (RPC) is an alpha or numeric character used to alert the computer to a special condition or computation. These codes are used for center processing and do not post to the Master File.

  2. Edit RPC’s in the margin on:

    1. TY18 and later Form 1040 - horizontally in the bottom left margin page 1 below the Paid Preparer’s area.

    2. TY17 and prior Form 1040 - vertically to the right of line 22

    3. TY17 and prior Form 1040A - vertically to the right of line 15

    4. TY17 and prior Form 1040EZ - vertically to the right of line 10

  3. Refer to the table in Exhibit 3.11.3-5 for an explanation of each RPC.

Special Processing Code (SPC)
  1. A Special Processing Code (SPC) is an alpha or numeric character used to flag a condition or trigger a computation. These codes are used for center processing and do not post to the Master File. These codes supplement the Return Processing Codes.

  2. TY18 and later Form 1040, edit SPCs vertically in the right margin next to the spouse’s social security number.

  3. TY17 and prior edit SPC’s vertically in the right margin, between the spouse’s social security number and the Presidential Election Campaign boxes.

  4. Refer to the table in Exhibit 3.11.3-6 for an explanation of each SPC.

Unallowable Code (UAC)
  1. An Unallowable Code (UAC) is a two-digit numeric character used to identify certain conditions on a tax return that are unallowable by law.

  2. Search all attachments to find unallowable items.

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. Do not edit UACs when the only dollar amount is a total of allowable and unallowable items. There must be separate dollar figures for unallowable coding, unless otherwise instructed.

  5. Prepare Form 3471 using the instructions at IRM 3.11.3.3.4.1 when coding unallowables.

  6. Refer to the table in Exhibit 3.11.3-7 for an explanation of each UAC.

Editing

  1. Editing is done to prepare returns and attachments for transcription and computer processing.

  2. The editing instructions described in more detail in this subsection are about:

    • Types and uses of specific edit markings

    • Dollars and cents editing

Edit Markings, General

  1. Always use a red erasable pen for edit markings. Perfect any taxpayer entered red marks that might interfere with transcription.

    Note:

    Never use other correction items, such as white-out.

  2. Never alter, erase, or obliterate a taxpayer's entry.

  3. Edit all markings legibly.

  4. Any reference to "significant entry" or "significant amount" is defined as a positive or negative number/dollar amount other than zero.

Types of Edit Markings

  1. Different edit conditions require different types of edit markings. Edit markings consist of:

    • Circling

    • Underlining

    • Arrowing

    • "X" -ing

    • Bracketing

    • Checking

Circling
  1. Circle information that is not to be transcribed when editing:

    • Caption data (except date of death)

    • Received dates

    • Filing status boxes

    • Other cases described in the line-by-line instructions

      Note:

      Never circle dollar amounts. If an entry or editing was circled out in error, re-edit or arrow to the proper location if necessary.

Underlining
  1. Underline when editing:

    • The additional information line and other caption data

    • Tax period on Prior Year returns

    • Other cases specified in this manual

Arrowing
  1. Use arrowing when indicating:

    • The correct T-line for a misplaced entry. See Figure 3.11.3-3.

    • Transcription is to continue (where indicated in line-by-line instructions)

    Note:

    A double-ended arrow or "underline with arrow" may be used to edit a dollar amount to multiple T-lines. See Figure 3.11.3-3.

    Figure 3.11.3-3

    This is an Image: 33440003.gif
     

    Please click here for the text description of the image.

"X" -ing
  1. An "X" may be used to delete an entry or an entire form or schedule.

    1. Place an "X" to the left of an amount or entry on a T-line when it is not to be transcribed.

    2. When adjusting an amount, edit an "X" to the left of the amount on the T-line and edit the adjusted amount to the left of the "X" .

    3. "X" an illegible amount and re-edit the information above or to the left of the "X" -ed entry. Be careful to edit the amount where it will not be mistaken for an entry on another T-line.

      Note:

      If necessary, edit the amount where space is available and arrow to the "X" -ed entry.

    4. Edit an "X" across the entire form or schedule if it must be deleted.

    5. "X" a transcribed schedule or form when it is blank or has no significant T-line entry, unless specifically instructed otherwise.

    6. "X" any transcribed schedule or form with "Alt Min Tax" , "AMT" , or "AMT-CR" or similar notation across the top and do not include entries when combining.

    Exception:

    Do not delete Form 6251, Alternative Minimum Tax-Individuals unless it is attached to a TY17 or prior Form 1040A or Form 1040EZ with no T-line entries on Form 6251.

Bracketing
  1. Use brackets to indicate a negative dollar amount when determining a T-Compute line amount.

    Note:

    Bracketing (as it relates to dollar amounts) is necessary only when the tax examiner is computing the line.

  2. Do not bracket the following:

    • Existing negative amounts on a return.

    • Amounts with preprinted brackets on the form/schedule.

Checking
  1. Use the check mark as directed in line-by-line instructions to indicate the information needs to be transcribed by ISRP.

Edit Marks Made by Other IRS Functions
  1. Edit marks entered by another area (such as Collections, Entity or IVO) are not to be re-edited except to place the edit marks in the correct area or to perfect for legibility.

    Exception:

    Re-edit or underline any valid black edit marks for transcription (i.e. photocopied/faxed returns).

Dollars and Cents Editing

  1. Allow taxpayers to round or truncate (i.e., "drop the cents" ) amounts. Use only dollar amounts when computing amounts on forms or schedules.

    Exception:

    Use dollars and cents when computing withholding and excess social security tax.

  2. Draw a vertical line between the dollars and cents figures when dollars or cents are in the wrong column:

    1. On each line that is to be transcribed, or

    2. Down the entire front of the form or schedule.

    Exception:

    It is not required to draw a vertical line when column(s) are not present and the dollars and cents have been separated by a decimal.

  3. Dollars and cents editing is required on certain T-lines for any of the following conditions:

    1. A substitute form is used with dollars and cents not clearly separated by a decimal point or slash.

      Exception:

      Do not draw a vertical line to separate dollars and cents when only dollar amounts are present on a dollars and cents T-line.

    2. An entry is illegible.

    3. Other editing requires a change to the taxpayer's entries.

    4. When computing and editing an entry as directed in line-by-line instructions.

      Exception:

      Do not edit "00" to indicate no cents.

  4. Edit all forms and schedules in dollars only, with the following exceptions:

    • TY18 and later Form 1040 - lines 15 through 23

    • TY18 and later Form 1040 Schedule 5

    • TY17 and prior Form 1040 - lines 63 through 79

    • TY17 and prior Form 1040A - lines 39 through 51

    • TY17 and prior Form 1040EZ - all lines

    • Form 6001 and 6001-A

    • Form 3531

Correspondence

  1. Correspondence is necessary when a return is incomplete or illegible and it cannot be processed.

  2. The correspondence instructions in this subsection of the manual are:

    • General correspondence procedures

    • Correspondence when sending return back to the taxpayer

    • Correspondence when not sending return back to the taxpayer

General Correspondence Information

  1. When the first correspondence condition is identified, request all missing required information. Include forms and/or schedules, Forms W-2, regardless of correspondence tolerances (except Form 1116, Form 2106, Form 8283, Form 8812, Schedule 8812 and Schedule EIC) identified in the line-by-line IRM instructions.

  2. Do not correspond with a taxpayer more than one time, unless specifically directed to in the line-by-line instructions.

    1. Correspond a second time if the taxpayer sends back a return and the signature is not located in the appropriate "Sign Here" area, under the jurat statement. For a taxpayer's signature to be valid, it must be in the "Sign Here" space provided under the jurat. The only exception to this rule is when the taxpayer him/herself has signed in the wrong area and arrowed their signature to the appropriate place.

  3. Do not correspond when information is missing and any of the following conditions apply:

    • The tax return is for TY08 and prior. See IRM 3.11.3.71.3(6)

      Exception:

      Correspond for signature regardless of tax year. See IRM 3.11.3.14.5.

    • "Substitute for Return Prepared by IRS" is noted on the return, or the return has been "dummied" .

    • "Section 6020(b)" or "prompt assessment" is written on the return.

    • The return has a notation, statement or letter attached indicating the return is a copy or amended. Notations may include "corrected" , "revised" , "tentative" , "amended" , "superseding" , "copy" or similar. Also see the amended return instructions in IRM 3.11.3.6.2.1 for additional instructions.

    • An Examination case is indicated. See the instructions in IRM 3.11.3.6.1.5 for additional instructions and a list of the attachments and notations by which an Examination case may be identified.

    • The taxpayer has written "For payment only" , or included a similar statement on the return.

    • International Returns (except AUSPC)

    • A "Hardship" case is indicated. See IRM 3.11.3.6.1.4.

    • There is an indication the return has been prepared (dummied) by Accounts Management. See IRM 3.11.3.6.2.1(2).

  4. Do not correspond for missing forms or schedules to support a credit or exemption claimed for a dependent when both of the following conditions apply:

    • The return was received with Form W-7 attached.

    • The ITIN application was rejected for the person who would have entitled the taxpayer to the credit and/or exemption.

      Note:

      Do not correspond for divorce decree, Form 8332, or Form 2120 when there is an indication the ITIN application(s) was rejected for the qualifying dependent(s).

  5. With the exception of returns coming from Collection and Correspondence Imaging System (CIS), send an unnumbered return to the originating area indicating what information is required.

General Correspondence Procedures

  1. Request a missing secondary TIN only when other correspondence is required and the Filing Status is Filing Status 2 (Married Filing Jointly), Filing Status 3 (Married Filing Separately), or Filing Status 6, or a spouse is claimed as a Dependent/Exemption.

    Exception:

    Do not request a secondary TIN when there is an indication the ITIN application was rejected or Non-resident Alien (NRA) or similar statement.

  2. Special additional information line editing is required any time correspondence is required on a:

    • Decedent return - see IRM 3.11.3.10

    • Fiduciary return - see IRM 3.11.3.11

    • Minor's return - see IRM 3.11.3.11.2

  3. If Form 1040 (or 1040A TY17 and prior) is missing page 1 or page 2, take the return to your work leader for research.

    Note:

    Work leader will follow the incomplete return instructions at IRM 3.11.3.6.2.4.

Correspondence When Sending Return Back to the Taxpayer
  1. Send a return back to the taxpayer in the following specific circumstances:

    • A misfiled return. (See IRM 3.11.3.6.2.16)

    • Early filed loose Schedule H for tax year 2019. Use Notice 1208, You Filed Schedule H (Household Employment Taxes) Too Early

    • Current year Loose Schedule H (received April 15, 2019 or earlier) - Use Notice 1207, File Schedule H (Household Employment Taxes) With Your Individual Income Tax Return

    • Missing or invalid signature(s) (See IRM 3.11.3.14.5).

    Exception:

    Do not mail back when:
    Numbered
    Secured
    CP 01H, 11, 12, 14/14H, 22 series, 23, 54, or 2000 is attached. See Exhibit 3.11.3-1 for processing procedures.
    LTR 2566 or 3219C unless Process as Original is present.
    Form W-7 or Form W-7(SP) is attached, route to ITIN
    Signed returns missing documentary evidence, including fiduciary and Power of Attorney (POA) returns.

    Reminder:

    Do not correspond when conditions in 3.11.3.5.1(3) apply.

  2. If the required valid legal signature is missing or not below the jurat statement, send the return back to the taxpayer using Form 3531.

    Note:

    A valid legal signature is an original signature written below the jurat statement in the "Sign here" box on the return. If the return is not signed and a signature is present on an attached CP 59, accept that as a valid signature on the return if signed under the jurat on the "sign here" line. Notate on the return signature line "See attached CP 59". Do not detach CP59, leave attached as support for original signature.

    1. Stop editing the return after identifying a missing or invalid signature.

    2. Examine the return for other missing items.

    3. Complete Form 3531 (See Exhibit 3.11.3-16):
      - Mark the appropriate signature box.
      - Request all missing required information.

    Exception:

    KCSPC, FSPC and OSPC: If transshipping International Returns or returns with Form W-7 attached, do not correspond for missing signature(s). AUSPC: Returns with W-7 attached, route to ITIN, do not correspond for missing signature.

  3. Prepare Form 3531 using the following steps:

    1. Write legibly.

    2. Check the applicable missing signature box.

    3. Check all the appropriate box(es).

    4. Enter money amounts in dollars and cents. Bracket negative amounts.

  4. Prepare the return to be sent back to the taxpayer using the following steps:

    1. Line through your TE number.

    2. Remove all internal documents (such as Form 3471 or Form 4227) if attached.

      Note:

      If second correspondence is required, remove original Form 3531.

    3. Do not detach attachments.

    4. Delete any IRS Received Date.

    5. Perfect a missing or incomplete address from an attached envelope. If unable to perfect from an attached envelope, research.

    6. Edit an Action Trail to notate "Return for Signature" (stamped or edited), Form 3531 and any other issued corresponded, with the current date unless it is being returned as a misfiled return. (e.g. Return for Signature MMDDYY or Return for Signature F3531, 8, 11 MMDDYY).

    7. Attach the correspondence sheet face up to the return immediately below the caption area.

      Caution:

      When stapling the correspondence sheet to the return, ensure you are attaching only one return.

    8. Remove the return from the batch and place it in the designated area.

Correspondence When Not Sending Return Back to the Taxpayer
  1. Complete all possible editing and identify all correspondence issues, when you are not sending the return back to the taxpayer.

  2. Perfect a missing or incomplete address from an attached envelope. If unable to perfect from an attached envelope, research.

  3. Request all missing required forms/schedules in the taxpayer correspondence. Do not attempt to dummy missing forms/schedules when other correspondence is required.

  4. A correspondence action sheet (CAS) is a form used to initiate a letter requesting information from a taxpayer. A CAS is used with returns that are not sent back to the taxpayer. The following CAS forms are used:

    1. Form 6001 is used to generate Letter 12C, Individual Return Incomplete for Processing: Form 1040. See Exhibit 3.11.3-15.

    2. Form 6001-A, Letter 12C Correspondence Action Sheet (PY), is used to generate Letter 12C for TY17 and prior returns.

    3. Form 3696-A, IDRS Correspondence Action Sheet, is used to generate miscellaneous Correspondex (C) letters (e.g., Letter 369C used to deny reasonable cause).

  5. Prepare Form 6001/Form 6001-A to initiate Letter 12C using the following steps:

    1. Write legibly.

    2. Check all the appropriate boxes.

    3. Complete all information required for each paragraph selected (e.g., forms, lines, amounts, etc.).

    4. Enter money amounts in dollars and cents. Bracket negative amounts.

    5. Use Exhibit 3.11.3-17, Correspondence Fill-in Paragraphs, when paragraph h is selected.

      Note:

      Take all other fill-in paragraphs to your manager/lead for his/her text approval and initials next to paragraph h.

    6. When paragraphs J - O are not enough to request all missing forms and schedules, use paragraph h with fill-in paragraph "48" instead.

    7. Always select the applicable fax number paragraph (k - o) specific to your campus.

      Note:

      No entry is required in the fill-in fields of the fax number paragraph (k - o).

  6. Attach the CAS to Form 1040, Form 1040A, or Form 1040EZ below the caption area.

    Caution:

    When stapling the correspondence sheet face up to the return, ensure you are attaching only one return.

  7. Edit Action Code "211" on all returns requiring correspondence when the return is not being mailed back to the taxpayer. See Figure 3.11.3-4.

    Exception:

    Edit Action Code "224" when corresponding for missing Form 8962 unless Action Code "300" can be edited. For TY17, edit Action Code "300" on all returns when any correspondence is required and 965 or Sec. 965 is noted on return or when line 73 box d is marked or when IRC 965 Transition Tax Statement is attached to return.

  8. If a received date is required and not present on the return, edit the received date before corresponding. Refer to the received date editing instructions at IRM 3.11.3.8.

    Figure 3.11.3-4

    This is an Image: 33440004.gif
     

    Please click here for the text description of the image.

General Response Procedures

  1. Move all correspondence sheets to the back of the return. If second correspondence is required, remove original Form 3531.

  2. See the instructions in Correspondence Action Chart at IRM 3.11.3.5.3.2 for processing "no reply" or "incomplete reply" , and undeliverable correspondence.

Reply Instructions
  1. Perfect the return.

  2. Edit the received date on returns identified as "Returned for Signature" , following the instructions at IRM 3.11.3.8.2(3).

No Reply/Incomplete Reply/Undeliverable Correspondence
  1. Use the Correspondence Action Chart and continue processing the return when any of the following no reply conditions are present:

    • Taxpayer does not provide all requested information.

    • Correspondence is returned by the USPS as undeliverable.

    • One or more correspondence conditions were not included when the first correspondence was sent.

  2. Edit CCC "U" on all no reply returns, except when any of the following apply:

    1. Withholding support was the only item not provided.

    2. The correspondence was not required.

    3. One or more correspondence conditions were not included when the first correspondence was sent.

  3. If a no reply correspondence condition is not identified in the chart below, edit CCC"U" and take no further action.

  4. Unless there is evidence to the contrary, assume that all correspondence conditions were included when the correspondence was sent.

  5. If CCC "3" is edited, edit it first.

  6. Refer to the following Correspondence Action Chart:

    Forms 1040, TY17 and Prior Forms 1040A and 1040EZ

    CORRESPONDENCE REQUIRED FOR THE FOLLOWING CONDITION on FORMS 1040, TY17 and Prior 1040A AND 1040EZ ACTION REQUIRED FOR INCOMPLETE REPLY OR NO REPLY
    Dependent TIN - Dependents claimed with no TIN "X" dependent’s name.

    Note:

    TY17 and Prior Only

    Line 6c -Exemption Position 3 missing supporting documentation to substantiate claim for dependent. (Form 8332, Form 2120 or divorce decree is not present.) Entries must be present on Forms 8332 or 2120.
    "X" Exemption Position 3.
    Signature
    • Missing Jurat

    • Missing or one signature on a joint return

    • Photocopied signature

    • Refund on a joint return and spouse refuses to sign

    • Condition requiring two witnesses

    • Minor child's return signed by other than a parent or relationship is not indicated

    1. Review unsigned return for possible IVO referral conditions. If found, place the return in the appropriate IVO Review Box with a note indicating the IVO condition. See Exhibit 3.11.3-12.

    2. If no IVO referral criteria are present, route undeliverable returns to the Entity Function and do not edit CCC "U" .

    3. If the taxpayer responds and sends back a return that shows the signature present in an area other than the Sign Here area under the jurat on the return, or has signed on Form 3531, send the return back to the taxpayer a second time.

      Exception:

      If the taxpayer signed an attached CP59 or Letter 143C, do not correspond for a signature under the jurat on the return. This signature is acceptable.

    4. If the return is not signed after correspondence (or second correspondence if applicable) for signature, edit Action Code "640" and continue processing.

      Exception:

      If the taxpayer signed an attached CP59 or Letter 143C, do not correspond for a signature under the jurat on the return. This signature is acceptable.

    Note:

    Edit only the caption area when Action Code 640 is edited

    .
    Blank return with missing signature If the taxpayer returns an unsigned blank return, edit RPC "L" and continue processing. Also edit CCC "B" .
    Power of Attorney missing. If the return is not signed by the taxpayer, edit CCC "3" .
    Fiduciary Returns - required documentary evidence not present. Edit CCC "3" .
    Decedent Return  
    a. Date of Death missing a. Edit CCC "3" .
    b. Required documentary evidence not present. b. Edit CCC "3" . Do not edit the AIL or CCC "L" or "W" .
    c. Proper additional information line (AIL) cannot be determined. c. Edit CCC "3" . Do not edit the AIL or CCC "L" or "W" .
    d. Form 1310 not signed or is incomplete. d. Edit CCC "3" . Do not edit the AIL or CCC "L" or "W" .
    e. Signature missing on Form 1040/ TY17 and prior 1040A/1040EZ but a completed Form 1310 with correct answers and signature is attached. e. See Signature instruction above.
    f. Signature missing on Form 1040/ TY17 and prior 1040A/1040EZ and Form 1310 is attached, but not signed. f. See Signature instruction above.

     

    Form 1040, Pages 1 and 2

    TY18 and Later FORM 1040 PAGE 2 TY17 and Prior FORM 1040, PAGES 1 and 2 ACTION REQUIRED FOR INCOMPLETE REPLY OR NO REPLY
    NA Line 12 - Schedule C/C-EZ or statement not attached. Prepare dummy Schedule C. Edit a positive amount on line 1. Edit a negative amount on line 28. Edit Audit Code "B" when the amount on line 12 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
    NA Line 13 - Schedule D or statement not attached  
      a. Gain of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Schedule D not attached. a. Prepare dummy Schedule D and edit the amount on line 7.
    . b. Loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Schedule D not attached. b. Prepare dummy Schedule D and edit the amount on line 7. Edit Audit Code "B" when the amount on line 13 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
    NA Line 14 - Form 4797, Form 4684, or statement not attached. Edit Audit Code "B" if a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ is claimed.
    NA Line 17 - Schedule E, statement, or clear indication of type of income missing. Prepare dummy Schedule E. Edit a positive amount on line 24, a negative amount on line 25. Edit Audit Code "B" when the amount on line 17 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
    NA Line 18 - Schedule F or statement not attached. Prepare dummy Schedule F. Edit a positive or negative amount on line 9. Edit Audit Code "B" when the amount on line 18 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
    NA Line 21 - Gambling net loss indicated and Schedule C not attached. "X" line 21.
    NA Line 21 - Sec. 965 noted and IRC 965 Transition Tax Statement not attached. Edit RPC "F" . Also edit Action Code "300"
    NA Line 22 - Gain or loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ and lines 7 through 21 are blank. Edit the amount on line 21.
    NA Line 24 - ≡ ≡ ≡ ≡ ≡ ≡ and Form 2106 not attached. "X" line 24.
    NA Line 25 - Amount claimed and Form 8889 not attached. "X" line 25.
    NA Line 26 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 3903 not attached. "X" line 26.
    NA Line 34 - Amount claimed and Form 8917 is not attached. "X" Line 34.
    NA Line 35 - Amount claimed and Form 8903 not attached. "X" line 35.
    NA Line 36 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , and not supported by entry on lines 23 through 36, dotted portion, or a statement. "X" line 36.
    NA Line 48 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 1116 not attached. "X" line 48.
    NA Line 49 - Amount claimed and Form 2441 not attached. "X" line 49.
    NA Line 50 - Amount claimed and Form 8863 not attached. "X" line 50.
    NA Line 51 - Amount claimed and Form 8880 not attached. "X" line 51.
    NA Line 52 - Amount claimed, Schedule 8812 not attached, and ITINs are shown for children claiming eligibility for Child Tax Credit on line 6c, Form 1040. "X" line 52.
    NA Line 53 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ claimed and Form 5695 is not attached. "X" line 53.
    NA Line 54 - amount claimed and not supported by form/schedule "X" line 54.
    NA Line 55 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and not supported by an entry on lines 48 - 54 or a write-in. "X" line 55.
    NA Line 57 - Schedule SE not attached. Divide SE Tax amount by .153 to determine SE income subtotal amount. Then divide the subtotal amount by .9235 to determine the SE income total amount. Edit the total amount on Schedule SE, line 3. Prepare a dummy Schedule SE for the primary taxpayer if Social Security wages are $128,400 or less; otherwise, prepare a dummy Schedule SE for the secondary taxpayer. See IRM 3.11.3.28.4.
    NA Line 58 - Amount claimed and Form 4137 or Form 8919 not attached. "X" line 58.
    NA Line 59 - Form 5329 not attached, no indication of No on line 59, and the amount claimed is not 10% of any combination of lines 15b, 16b, or attached Form(s) 1099-R. Prepare a dummy Form 5329. Edit the amount from line 59 to line 17 of Form 5329. Process for the primary taxpayer if a determination cannot be made.
    NA Line 60a - Amount claimed and Schedule H not attached. "X" line 60a.
    NA Line 62 - Amount claimed and Forms 8959 and 8960 not attached, and no indication from box c. "X" line 62.
    Form 1040, Line 16 - Amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and withholding document is not present. Line 64 - Amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and withholding document is not present. TY18 and later "X" line 16.
    TY17 and prior "X " line 64.
    Form 1040, Line 17a - Amount claimed and no source of earned income is present. Line 66a - Amount claimed and no source of earned income is present. Edit RPC "B" and for
    TY18 and later, "X " line 17a
    TY17 and prior, "X" line 66a.
    Form 1040, Line 17b - Amount claimed and Schedule 8812 not attached. Line 67 - Amount claimed and Schedule 8812 not attached. TY18 and later, "X" line 17b.
    TY17 and prior, "X" line 67.
    Form 1040, Line 17c - Amount claimed and Form 8863 not attached. Line 68 - Amount claimed and Form 8863 not attached. TY18 and later, "X" line 17b.
    TY17 and prior, "X" line 68.
    NA Line 71 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and either no Form W-2 is attached or not all Forms W-2 are attached. "X" line 71.
    NA Line 72 - Any amount claimed and Form 4136 not attached. "X" line 72.
    NA Line 73 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 2439 or other refundable credits are not attached. "X" line 73.

     

    TY18 and Later Schedules 1 through 5

    TY18 and Later SCHEDULES 1 through 5 ACTION REQUIRED FOR INCOMPLETE REPLY OR NO REPLY
    Schedule 1, Line 12 - Schedule C/C-EZ or statement not attached. Prepare dummy Schedule C. Edit a positive amount on line 1. Edit a negative amount on line 28. Edit Audit Code "B" when the amount on line 12 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
    Schedule 1, Line 13 - Schedule D or statement not attached  
    a. Gain of ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Schedule D not attached. a. Prepare dummy Schedule D and edit the amount on line 7.
    b. Loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Schedule D not attached. b. Prepare dummy Schedule D and edit the amount on line 7. Edit Audit Code "B" when the amount on line 13 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
    Schedule 1, Line 14 - Form 4797, Form 4684, or statement not attached. Edit Audit Code "B" if a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ is claimed.
    Schedule 1, Line 17 - Schedule E, statement, or clear indication of type of income missing. Prepare dummy Schedule E. Edit a positive amount on line 24, a negative amount on line 25. Edit Audit Code "B" when the amount on line 17 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
    Schedule 1, Line 18 - Schedule F or statement not attached. Prepare dummy Schedule F. Edit a positive or negative amount on line 9. Edit Audit Code "B" when the amount on line 18 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
    Schedule 1, Line 21 - Gambling net loss indicated and Schedule C not attached. "X" line 21.
    Schedule 1, Line 21 - Sec. 965 noted and IRC 965 Transition Tax Statement not attached. Edit RPC "F" .
    Schedule 1, Line 22 - Gain or loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ and lines 7 through 21 are blank. Edit the amount on line 21.
    Schedule 1, Line 24 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 2106 not attached. "X" line 24.
    Schedule 1, Line 25 - Amount claimed and Form 8889 not attached. "X" line 25.
    Schedule 1, Line 26 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 3903 not attached. "X" line 26.
    Schedule 1, Line 36 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , and not supported by entry on lines 23 through 36, dotted portion, or a statement. "X" line 36.
    Schedule 3, Line 48 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 1116 not attached. "X" line 48.
    Schedule 3, Line 49 - Amount claimed and Form 2441 not attached. "X" line 49.
    Schedule 3, Line 50 - Amount claimed and Form 8863 not attached. "X" line 50.
    Schedule 3, Line 51 - Amount claimed and Form 8880 not attached. "X" line 51.
    Schedule 3, Line 53 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ claimed and Form 5695 is not attached. "X" line 53.
    Schedule 3, Line 54 - amount claimed and not supported by form/schedule "X" line 54.
    Schedule 4, Line 57 - Schedule SE not attached. Divide SE Tax amount by .153 to determine SE income subtotal amount. Then divide the subtotal amount by .9235 to determine the SE income total amount. Edit the total amount on Schedule SE, line 3. Prepare a dummy Schedule SE for the primary taxpayer if Social Security wages are $128,400 or less; otherwise, prepare a dummy Schedule SE for the secondary taxpayer.
    Schedule 4, Line 58 - Amount claimed and Form 4137 or Form 8919 not attached. "X" line 58.
    Schedule 4, Line 59 - Form 5329 not attached, no indication of No on line 59, and the amount claimed is not 10% of any combination of line 4b or attached Form(s) 1099-R. Prepare a dummy Form 5329. Edit the amount from line 59 to line 17 of Form 5329. Process for the primary taxpayer if a determination cannot be made.
    Schedule 4, Line 60a - Amount claimed and Schedule H not attached. "X" line 60a.
    Schedule 4, Line 62 - Amount claimed and Forms 8959 and 8960 not attached, and no indication from box c. "X" line 62.
    Schedule 5, Line 72 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and either no Form W-2 is attached or not all Forms W-2 are attached. "X" Schedule 5, line 72.
    Schedule 5, Line 73 - Any amount claimed and Form 4136 not attached. "X" Schedule 5, line 73.
    Schedule 5, Line 74 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 2439 or other refundable credits are not attached. "X" Schedule 5, line 74.

     

    Supporting Forms and Schedules

    TY18 and Later SUPPORTING FORMS and SCHEDULES TY17 and Prior SUPPORTING FORMS and SCHEDULES ACTION REQUIRED FOR INCOMPLETE REPLY OR NO REPLY
    Schedule A Schedule A  
    a. Line 7 -- Amount present, no entries on lines 5a through 6. a. Line 9 -- Amount present, no entries on lines 5 through 8. a. "X"
    CY line 7 or
    PY line 9.
    b. Line 10 - Amount present, no entries on lines 8a through 9, and line 5b is blank. b. Line 15 - Amount present, no entries on lines 10 through 14, and line 6 is blank. b. "X"
    CY line 10 or
    PY line 15.
    c. Line 12 - Amount present
    -≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8283 not attached or
    -≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , Art is indicated on Form 8283 and separate appraisal not attached or
    -≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and separate appraisal not attached or
    - Form 8283, page 2, has significant entries but not signed.
    c. Line 17 - Amount present
    -≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8283 not attached or
    -≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , Art is indicated on Form 8283 and separate appraisal not attached or
    -≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and separate appraisal not attached or
    - Form 8283, page 2, has significant entries but not signed.
    c. "X"
    CY line 12 or
    PY line 17.
    d. Line 14 -- Amount present, no entries on lines 11 through 13 d. Line 19 -- Amount present, no entries on lines 16 through 18 d. "X"
    CY line 14 or
    PY line 19.
    e. Line 15 - Amount present and Form 4684 not attached. e. Line 20 - Amount present and Form 4684 not attached. e. "X"
    CY line 15 or
    PY line 20.
    Not Applicable f. Line 21 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ , and Form 2106 or Form 2106-EZ, or similar statement not attached. f. "X" line 24.
    Not Applicable g. Line 27 - Amount claimed and lines 21 through 24 are blank. g. Edit line 27 amount to line 28. If the amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ , edit Audit Code "B" .
    Schedule B - Amount on line 3 and Form 8815 not attached. Schedule B - Amount on line 3 and Form 8815 not attached. TY18 and later, adjust line 2b Form 1040 by adding the amount claimed on line 3, Schedule B. "X" line 3 on Schedule B.
    TY17 and prior, adjust line 8a, Form 1040, by adding the amount claimed on line 3, Schedule B. "X" line 3 on Schedule B.
    Schedule C - Line 31 - Loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , line 32b box is checked, and Form 6198 not attached. Schedule C - Line 31 - Loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , line 32b box is checked, and Form 6198 not attached. Adjust line 28, Schedule C, to equal line 7, Schedule C.
    Schedule E - Lines 28A through 28D - Loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ indicated in column (f) or (h), corresponding column (e) box (Check if any amount is not at risk) is marked, and Form 6198 not attached. Schedule E - Lines 28A through 28D - Loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ indicated in column (f) or (h), corresponding column (e) box (Check if any amount is not at risk) is marked, and Form 6198 not attached. "X" line 31, Schedule E.
    Schedule F - Box on line 36b checked, line 34 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ , and Form 6198 not attached. Schedule F - Box on line 36b checked, line 34 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , and Form 6198 not attached. Adjust line 33, Schedule F, to equal line 9 if the cash method is used or to equal line 50 if the accrual method is used.
    Schedule R
    • Boxes 1 through 9 are blank

    • No entry on line 11 and box 2, 4, 5, 6 or 9 is checked.

    • No entry on line 13c.

    Schedule R
    • Boxes 1 through 9 are blank

    • No entry on line 11 and box 2, 4, 5, 6 or 9 is checked.

    • No entry on line 13c.

    "X" Schedule R.
    Schedule SE - Cannot determine the proper allocation of SE amounts. Schedule SE - Cannot determine the proper allocation of SE amounts. Process Schedule SE for the primary taxpayer if primary wages are $128,400 ($127,200 TY17) or less. Otherwise, process Schedule SE for the secondary taxpayer.
    Form 2441 Form 2441  
    a. Line 1, Column (c) is blank. a. Line 1, Column (c) is blank. a. "X" line 3, Form 2441.
    b. Line 2, Column (b) is blank. b. Line 2, Column (b) is blank. b. "X" qualifying person’s name.
    Form 3800 (Part III) - Any entries present in Part III must be supported by the source form or show an EIN in Column b, Part III. Form 3800 (Part III) - Any entries present in Part III must be supported by the source form or show an EIN in Column b, Part III. "X" any credits claimed in Part III not supported by the appropriate source form or without an EIN in Column b, Part III.
    Form 4137 - Cannot determine correct allocation. Form 4137 - Cannot determine correct allocation. Process Form 4137 for the primary taxpayer if primary wages are $128,400 ($127,200 TY17) or less. Otherwise, process Form 4137 for the secondary taxpayer.
    Reserved Form 5405 - Complete settlement statement (Form HUD-1) not present. "X" Form 5405.
    Form 8606 - More than one name is present in the caption and proper allocation cannot be determined. Form 8606 - More than one name is present in the caption and proper allocation cannot be determined. Process Form 8606 for the primary taxpayer.
    Form 8615 - Parent's name control cannot be determined. Form 8615 - Parent's name control cannot be determined. Edit the primary taxpayer's name control.
    Schedule EIC
    • Number of months is not indicated.

    • Child's TIN is missing and no support for a child who was born in the tax period and died in the same or next consecutive tax period.

    Schedule EIC
    • Number of months is not indicated.

    • Child's TIN is missing and no support for a child who was born in the tax period and died in the same or next consecutive tax period.

    "X" the child's name.
    Schedule H - Cannot determine proper allocation of Schedule H amounts. Schedule H - Cannot determine proper allocation of Schedule H amounts. Process Schedule H for the primary taxpayer.
    Loose Schedule H - Cannot determine if Schedule H should be filed loose or attached to a Form 1040. Loose Schedule H - Cannot determine if Schedule H should be filed loose or attached to a Form 1040. Process Schedule H with a dummied Form 1040. See IRM 3.11.3.48.14.
    Reserved Schedule 8812 - Boxes in Part I are not checked and ITIN dependents with corresponding CTC box checked are claimed on Form 1040/1040A, Line 6c "X" Line 52/67, Form 1040 (line 35/43, Form 1040A).
    Form 8917 - Name control and/or TIN cannot be perfected or cannot determine which taxpayer is claiming the deduction. Form 8917 - Name control and/or TIN cannot be perfected or cannot determine which taxpayer is claiming the deduction. "X" Form 8917.
    Form 8919 - Unable to determine which taxpayer is filing Form 8919. Form 8919 - Unable to determine which taxpayer is filing Form 8919. Process Form 8919 for the primary taxpayer if primary wages are $128,400 or less. Otherwise, process Form 8919 for the secondary taxpayer.

     

    TY17 and Prior Form 1040A, Pages 1 and 2

    FORM 1040A, PAGES 1 and 2 ACTION REQUIRED FOR INCOMPLETE REPLY OR NO REPLY
    Line 19 - Amount claimed and Form 8917 not attached. "X" line 19.
    Line 20 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and not supported by entry on lines 16 through 19 or a statement. "X" line 20.
    Line 31 - Amount claimed and Form 2441 not attached. "X" line 31.
    Line 32 - Amount claimed and Schedule R not attached. "X" line 32.
    Line 33 - Amount claimed and Form 8863 not attached. "X" line 33.
    Line 34 - Amount claimed and Form 8880 not attached. "X" line 34.
    Line 35 - Amount claimed, Schedule 8812 not attached, and ITINs are shown for children claiming eligibility for Child Tax Credit on line 6c, Form 1040A. "X" line 35.
    Line 36 - ≡ ≡ ≡ ≡ ≡ ≡ and lines 31 through 35 are blank. "X" line 36.
    Line 40 - Amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and withholding document is not present. "X" line 40.
    Line 42a - Amount claimed and no source of earned income is indicated. "X" line 42a and edit RPC "B" .

    Note:

    Do not "X" line 42a or edit RPC "B" if "PYEI" is noted in the line 42a area.

    Line 43 - Amount claimed and Schedule 8812 not attached. "X" line 43.
    Line 44 - Amount claimed and Form 8863 not attached. "X" line 44.

     

    TY17 and Prior Form 1040A - Forms and Schedules

    FORM 1040A - FORMS and SCHEDULES SEE SUPPORTING FORMS AND SCHEDULES

     

    TY17 and Prior Form 1040EZ

    FORM 1040EZ ACTION REQUIRED FOR INCOMPLETE REPLY OR NO REPLY
    Line 7 - Amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and withholding document is not present. "X" line 7.
    Line 8a - Amount claimed and no source of earned income indicated. "X" line 8a and edit RPC "B" .

    Note:

    Do not "X" line 8a or edit RPC "B" if "PYEI" is noted in the line 8a area.

     

Special Situations and Returns

  1. While the instructions in this manual are generally based on the typical return, there are some special situations and return types that occur frequently enough to be included.

  2. The instructions included in this subsection of the manual include the following special situations:

    • Combat Zone and Other Military Operations

    • Killed in Terrorist Action (KITA)

    • Natural Disaster/Emergency Relief Program

    • Hardship

    • Examination Cases

    • Frivolous Filer/Non-Filer returns

    • Refund Schemes

    • Identity Theft

  3. The special return instructions included in this subsection are for the following:

    • Amended Returns

    • Blank Returns

    • Blind Trust Returns

    • Blocked or Deferred Income Returns

    • Correspondence Imaging System (CIS) Returns

    • Combined Tax Liabilities

    • Community Property Returns

    • Form 8938, Statement of Foreign Financial Assets

    • Incomplete Returns

    • Injured Spouse Returns

    • Innocent Spouse

    • International Returns

    • Joint Committee Returns

    • Misblocked Returns

    • Misfiled Returns

    • Reinput Returns

    • Returns Secured by Collection

    • Short-period Returns

    • Substitute for Return

    • Uncomputed Returns

    • Unprocessable Returns

    • 52-53 week return

Special Situations

  1. Follow the instructions in this subsection of the manual in addition to the regular editing instructions, unless otherwise specified.

Combat Zone and Other Military Operations
  1. The deadlines for filing an income tax return and paying the income tax may be postponed for certain persons involved in the following types of military operations:

    1. Members of the armed forces and certain persons supporting them in a Combat Zone designated in an Executive Order by the President;

    2. Members of the armed forces serving in a contingency operation designated by the Department of Defense or arising by operation of law.

    3. Members of the armed forces serving in an area certified by the Department of Defense for which the member receives hostile fire/imminent danger pay,

    4. Members of the armed forces and certain persons supporting them in a Qualified Hazardous Duty Area (designated by an act of Congress).

  2. Generally, though, military personnel have the same filing requirements as civilians.

  3. Refer any question concerning a military return to your work leader. The work leader will hand carry the return to Tax Accounts when the proper action cannot be determined.

  4. Follow normal correspondence procedures when required information is missing from the return. See IRM 3.11.3.6.1.1.2.

Military Operations
  1. Take the following actions when a military operation is noted on the return:

    If the taxpayer notes And the Tax Year is Then
    "Military Spouses Residency Relief Act" , "MSRRA" or similar statement at the top of their return 09 or later
    1. Edit CCC "M" .

    2. Edit CCC "P" .

      Note:

      If the taxpayer shows no wages present on line 1 Form 1040 (line 7, TY17 and prior) withholding is significant on line 16 and line 20a, Form 1040 (line 64 and line 76a, TY17 and prior) shows a refund of all withholding, edit RPC "G" .

    3. If the MSRRA filing is FS 3, the following signed and dated declaration must be present:
      "I am claiming ___________ as my residence or domicile under the Military Spouses Residency Relief Act (MSRRA). Under penalties of perjury, I declare that I am qualified for relief under MSRRA because I am present in __________ solely to accompany my spouse, who is a service member serving in compliance with military orders, and my claimed residence or domicile is the same as my spouse's residence or domicile."

    4. Correspond if this signed and dated declaration is not present on a MSRRA filing claiming FS 3. Stamped or faxed signatures are not acceptable. Correspond using fill-in "5" , per Exhibit 3.11.3-17.

    "Haiti" or "Operation Unified Response" 09 - 10 Edit CCC "Z" if Form W-2 is not issued by Department of Defense (DOD) or Defense Finance and Accounting Services (DFAS).
    • "Operation New Dawn"

    • "New Dawn"

    • "Enduring Freedom"

    • "Operation Enduring Freedom"

    • "Operation Iraqi Freedom"

    • "Iraq"

    • "Operation Noble Eagle"

    • Sinai Peninsula-Egypt

    • "Combat Zone" OR similar statement

    01 or later
    1. Check to see if Form W-2 is from the Department of Defense (DOD) or Defense Finance and Accounting Services (DFAS).

      1. If Form W-2 is issued by DOD or DFAS, take no action.

      2. If Form W-2 is NOT issued by DOD or DFAS, edit CCC "K" .

    • "Desert Storm"

    • "Joint Guard"

    • "Joint Forge"

    • "Northern Forge"

    • "Northern Watch"

    .
    90 or later Edit CCC "Z"
    "Former Yugoslavia" 00 - 94
    1. Edit CCC "D"

    2. Edit CCC "M" if balance due

    • "Haiti"

    • "Operation Uphold Democracy"

    • "Operation GTMO"

    94 or later
    1. Edit CCC "D" .

    2. Edit CCC "M" if balance due.

    • "Somalia"

    • "Somalia Restore Hope"

    92 or 93
    1. Edit CCC "D" .

    2. Edit CCC "M" if balance due.

    "UN Operation" 92 or later
    1. Edit CCC "D"

    2. Edit CCC "M" if balance due.

    Note:

    Colombia is not a recognized military operation

  2. Edit CCC "Y" and an Action Trail when a military operation or tax period other than one listed in the table in (1) above is named.

  3. Edit CCC "Y" and an Action Trail when the taxpayer excluded income due to combat or military pay.

Correspondence on Military Operation/Combat Zone Returns
  1. One signature is acceptable on a joint return in the following situations:

    • Spouse overseas and signing spouse authorized by a power of attorney (e.g., Form 2848) or similar signed document which clearly defines the scope of authorization granted to the POA.

    • Spouse in combat zone/qualified hazardous duty area and signing spouse attaches statement.

    • Spouse is member of the Armed Forces who is in a missing status in a combat zone.

  2. Follow normal correspondence procedures when other required information is missing from the return.

  3. Address the correspondence to the authorized person when a Power of Attorney (POA), or similar signed document, clearly defining the scope of authorization granted to the POA, is attached.

Killed in Terrorist Action (KITA)
  1. Route all returns identified as "KITA/KIA" , "KITA-Oklahoma City" , "KITA-9/11" or "KITA-Anthrax" to CIS/AM and notate KITA in the Action Trail.

    Note:

    Hand-carry KITA returns to the Work Leader unless batch as KITA or follow local procedures.

  2. Route Form 1040 returns when the taxpayer has written "Sec 692(d)(2)" on the "Other Payments" line with a money amount to the right, to CIS/AM and notate KITA in the Action Trail.

  3. TY17 and prior Form 1040A or 1040EZ with Sec 692(d)(2) written anywhere on the return must be converted to a 2017 Form 1040 before sending the return to CIS/AM.

Natural Disaster/Emergency Relief Program
  1. The taxpayer may identify the name of a disaster or emergency on the front of his/her return or on an attachment.

  2. For TY16 and later, if there is a Federally declared disaster loss claimed on Schedule A/Form 4684, edit SPC "D" .

  3. If the taxpayer requests the refund be mailed to a temporary mailing address, edit Action Code "341" .

  4. Correspond for any missing required signatures, forms and schedules using Form 6001/6001-A. Do not send the return back to the taxpayer.

    Exception:

    Do not correspond for withholding, excess social security tax, or support for earned income.

Hardship
  1. Taxpayers, their representatives, or IRS employees may complete Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), when a taxpayer is experiencing a hardship. Hardship alone, however, is not a basis for referring cases to the Taxpayer Advocate Service (TAS). The IRS must take steps whenever possible to resolve the matter before referring the taxpayer to TAS.

  2. Refer a return with a notation of an actual or potential hardship to your work leader. The term hardship is used broadly and covers more than just hardship in a financial sense. TAS has developed nine criteria to determine which taxpayers qualify for TAS assistance.

  3. The local Taxpayer Advocate will make the final decision on whether a taxpayer meets TAS criteria. See IRM 13.1.7 for a complete list of TAS case criteria. Refer to the Attachment Guide in Exhibit 3.11.3-1 for procedures for routing Form 911 to the TAS Office and Taxpayer Advocate Service Case Criteria, for further instructions.

  4. When local Taxpayer Advocate walks a return through Code and Edit on the basis of hardship, in addition to normal editing, perform all actions below:

    1. Edit CCC "O" .

    2. Edit CCC "Y" and an Action Trail.

    3. "X" the refund line on the return.

      Note:

      If correspondence conditions are identified during editing, give the return back to TAS and do not correspond.

Examination Cases
  1. Ensure review boxes are established in Code and Edit for Examination (Exam). See Exhibit 3.11.3-13.

  2. Returns with the following notations or attachments have been Examination cases. Edit these returns using regular editing procedures except for the special instructions in this subsection of the manual.

    • "Exam has original delinquent return – Process this copy as an original"

    • "Original delinquent return secured by Examination"

    • Form 3198, Special Handling Notice for Examination Case Processing

    • Examination work papers

    • Copy of Form 5546, Examination Return Charge-Out Sheet

    • Form 13133, Expedite Processing Cycle

  3. Follow the instructions about penalties in the blocks in the special handling area of Form 3198. Also, follow the instructions noted in the blocks at the bottom of the Form 3198.

  4. Edit the Received Date, if noted. Otherwise, follow the regular Received Date procedures in IRM 3.11.3.8.

  5. Do not correspond. Do not send the return back to the taxpayer.

  6. If the return cannot be processed, route the return to Examination for additional action using Form 4227. Note on Form 4227, "return to originator" .

    1. Pull an unnumbered return from the batch and route it to Examination.

    2. Edit Action Code "640" when the return is numbered.

    Exception:

    Refer an unprocessable return to the work leader when Form 13133 is attached. The work leader will contact the Examining Officer at the number provided to resolve the problem.

Frivolous Filer/Non-Filer Returns
  1. Ensure review boxes are established in Code and Edit for Frivolous Return Program (FRP). See Exhibit 3.11.3-11.

  2. Route to Frivolous Return Program (FRP) any return on which the taxpayer:

    1. Argues -for any reason- the filing of a tax return or the paying of a tax is not required.

    2. Makes use of a frivolous argument to reduce income or tax liability. (See (6) below for examples.)

    3. Marks out or alters -in any manner- the penalty of perjury statement (i.e., jurat) above the signature.

      Note:

      If the return has already been reviewed by the Exam FRP Coordinator, a Frivolous Return Program (FRP) stamp will be present in the upper-left corner. Continue processing if present.

  3. Pull unnumbered returns and prepare Form 4227. Notate "Frivolous" .

  4. Leave numbered returns in the block and edit Action Code "331" , unless otherwise noted.

  5. When a return meets criteria for a frivolous filing determination as shown in paragraph (6) below, route the return to FRP. FRP will review the return and if it meets their criteria for frivolous filing, they will edit or stamp Audit Code "R" .

  6. Some common examples of frivolous returns are listed below. This list is not all-inclusive, but represents the current most common types of frivolous filings. See Exhibit 3.11.3-11 for additional examples and complete descriptions.

    • All withholding from Form 1099-OID and/or Form 1099-A

    • Form 2439 of $10,000 or more

      Example:

      Mutual funds and real estate investment trusts (REITs) are the most common sources of Form 2439. Some fraudulent uses are obvious. Filers may create a Form 2439 in the name of their employer and file it along with the Form W-2 from that employer. Filers may create a Form 2439 in the name of well-known businesses, such as restaurants and department stores. These Forms 2439 and others from unlikely sources are suspect.

    • Wages not income

    • Wages of primary taxpayer deducted on Schedule A or C

    • Zero return with and without refund claimed

    • Zero return with and without Forms W-2 attached

    • Zero return with frivolous argument

    • Zero or little income return and substitute Form W-2, Form 4852 or corrected Form 1099 attached

    • Altered Form or Jurat, or a reference to "UCC 1-207"

    • Entitlement refund request - The filer asserts an exemption from taxation and requests a refund related to their birthright. These include Reparations for Slavery (40 Acres and a Mule, Black Investment Tax, African American Tax, etc.), Native American Indian Treaty, Bosnian Refugee, Daughters of the American Revolution, etc. Filers often use Form 2439 in aid of these frivolous arguments and the suspect Form 2439 provides the source of the refund.

    • Constitutional amendment - 1st, 5th, 13th, 16th, etc. - cited in defense of an assertion that the tax code is unconstitutional.

    • IRC cited in defense of exemption from taxation - IRC § 861, 1001, 1341, 3121, etc.

    • Taxes are voluntary; the IRS has no authority; the law does not require

    • Not a person, not a citizen, untaxed

    • Protest against government action or inaction

    • Prisoner return citing any frivolous argument

    • Prisoner return attaching calculations of income derived from work assignments within the prison and generally claiming a refund of withholding, perhaps supported by substitute Form W-2)

    • Confused taxpayer filings - outlandish dollar amounts on any line or nonsensical gibberish

    • A thumbprint or fingerprint present in the signature area of a return.

    • Form 2555 - Deduction used on line 21, Schedule 1 (TY17 and prior line 21, Form 1040), to eliminate income even though taxpayer and employer are U.S. residents

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Refund Schemes
  1. Integrity and Verification Operation (IVO) will review returns for refund schemes that in general make use of excessive withholding or false earnings. See Exhibit 3.11.3-12 for IVO Review criteria.

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. Edit Audit Code "K" when Accounts Management requests that a return be identified for Examination.

  5. When refund scheme returns are sent through the pipeline for processing that have CCC "3" edited, do not research or correspond for source of earned income.

Identity Theft
  1. See Exhibit 3.11.3-1 when the taxpayer submits Form 14039, Form 14039 (SP), or police report(s) claiming Identity Theft.

Suicide Threats
  1. If the taxpayer makes a suicide threat in written correspondence:

    1. Stay calm.

    2. Give the correspondence to the manager/lead, who will contact the proper local authority.

  2. See IRM 11.3.34, Disclosure for Non Tax Criminal Violations, for additional disclosure information.

Special Returns

  1. Follow the instructions in this section in addition to the regular editing requirements, unless otherwise instructed.

Amended Returns
  1. Take a fully coded/edited return to the work leader when any of the following notations or conditions are present:

    • Amended

    • Corrected

    • Revised

    • Superseding

    • Tentative

    • Duplicate

    • Copy

    • Substitute

    • Filed

    • Attached IRS Notice indicating a previous return posted for the same tax period

    • Taxpayer statement is present indicating the return is a copy of an accepted electronically filed return

    • Taxpayer statement is present indicating the return is an amendment to an electronically filed return

    • ITIN return indicating the return has been submitted for W-7 renewal only

    • Any indication the taxpayer has previously filed the return

    Exception:


    - Process the return as an original if "No TC150" has been annotated or if "Secured by Collections" or "TC-599-XX" appears anywhere on the return.
    - Process a photocopied return as an original when "Process as Original" has been edited on the return, indicating Exam has the original, delinquent return. If correspondence is required, see IRM 3.11.3.5.1(3).
    - Process the return as an original if SPC B has been edited by IVO/ITVA.

  2. The work leader will take the following actions:

    1. Research for the status of the return using the primary TIN and the tax period of the return. Refer to Job Aid 2431-009 for command code instructions.
      • Research CC IMFOLT for a TC150 to determine if a return has already posted.
      • Research CC ERINV to determine if there is a return in ERS.

    2. Research results:
      • If a TC150 has posted for the tax period of the return, route to 1040X unit.
      • If there is already a return in ERS for the same tax period, route to Rejects.
      • If no TC150 has posted and no return is in ERS, continue processing as an original return.

  3. Process a return prepared (dummied) by Accounts Management as an original return and do not correspond for missing information or a signature.

  4. If a return with or without a notation of "TC150" is received and "PAO" is edited in the upper left margin, continue processing as an original return. Correspond, if necessary.

Amended Joint MFA or MFS Return
  1. If a return has "Amended Joint MFA" (married filing alien) or "Amended Joint MFS" (multiple filing status) stamped on top:

    1. Edit Action Code "460" .

    2. Prepare Form 4227 with instructions to route to Examination and leave the return in the batch.

Unprocessable Return
  1. A return is unprocessable when all of the caption data is missing or illegible and the caption cannot be perfected from attachments or through research.

  2. Handle unprocessable returns as follows:

    If the return is Then
    Numbered,
    1. Edit Action Code "640" .

    2. Prepare Form 4227 instructing the Reject Unit to void the DLN and dispose of the return.

    Unnumbered, Give the return to your work leader. The work leader will destroy the return in accordance with classified waste procedures.
Blank Return
  1. Edit RPC "L" and CCC "B" on returns with all zeros or no significant entries present, or edited from attachments, on any of the following T-Lines:

    • TY18 and later, Lines 1 through 23, Form 1040

    • TY17 and prior, Lines 7 through 79, Form 1040

    • TY17 and prior, Lines 7 through 51, Form 1040A

    • TY17 and prior, Lines 1 through 14, Form 1040EZ

    Reminder:

    For TY17 and prior, RPC "L" does not negate the need for a Dependency Status Indicator (DSI),when applicable.

    Reminder:

    Correspond for a missing signature on a blank return using Form 3531, box 7.

  2. Refer the return to your work leader when caption information is missing and cannot be perfected using instructions in IRM 3.11.3.9.2.

  3. Treat the blank return as amended when a statement is present indicating that a return will be filed later. See the amended return instructions in IRM 3.11.3.6.2.1.

  4. Edit CCC "E" when a statement indicates the taxpayer will have no future filing requirements.

  5. Refer to the instructions in IRM 3.11.3.6.1.6 when the return has been filed as a frivolous filer return.

  6. Refer to IRM 3.11.3.6.2.20 for processing instructions when there is an indication the return is a Substitute For Return (SFR) or an Automated Substitute for Return (ASFR).

  7. If a return is blank and missing signature, correspond using Form 3531, box 7.

Incomplete Return
  1. If a Form 1040 or TY17 and prior Form 1040A is missing page 1 or page 2, take return to the work leader.

  2. The work leader will:

    1. Research for the status of the return, including CC ERINV for a possible ERS status.
      • If TC150 has posted, route to Form 1040X unit.
      • If there is already a return in ERS, route to Rejects.

    2. If no TC150 has posted and not in ERS, prepare return for correspondence and request all missing information. Research for an address, if necessary.

    3. If unable to correspond, destroy the page in accordance with classified waste procedures.

Uncomputed Return
  1. An uncomputed return is one filed by a taxpayer expecting the IRS to figure his/her tax. Do not confuse an uncomputed return with a return that has no tax due.

    Note:

    Do not edit CCC "B" on uncomputed returns.

  2. An uncomputed return can be identified as follows:

    1. TY18 and later Form 1040 has no entries on lines 11a, 11, 13, 15, 19, 20a, 21 and 22. See Figure 3.11.3-5.

    2. TY17 and prior Form 1040 has no entries on lines 44, 45, 46, 47, 56, 63, 75, 76a, 77 and, 78.

    3. TY17 and prior Form 1040A has no entries on lines 28, 29, 30, 37, 39, 47, 48a, 49 and 50.

    4. TY17 and prior Form 1040EZ has a positive entry on line 6 and no entries on lines 10, 11, 12, 13a, and 14.

  3. An unnumbered, uncomputed return can be sent back to the taxpayer when corresponding.

  4. For TY17 and prior, edit CCC "Y" and an Action Trail on an uncomputed return when both of the following conditions are present:

    1. Separate income amounts are shown for each spouse on a joint return, and

    2. No dependents / exemptions are claimed in positions 1 through 6 (TY17 and prior, positions 2 through 7), or an allocation of dependents / exemptions is indicated.

      Example:

      The taxpayer notes, "My wife has the exemptions for our two children."

    Figure 3.11.3-5

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    Please click here for the text description of the image.

Blocked or Deferred Income Return
  1. If a return with a notation of blocked or deferred income is attached to another return:

    1. "X" the blocked income return, place behind the processable return and continue editing.

    Note:

    Blocked or deferred income is not an indication of an International Return.

  2. If a return with notation of blocked, deferred income or Rev. Rul. 74-351 is not attached to another return, take to work leader.

    1. The work leader will take the following actions:
      Research for the status of the original return using the primary TIN and the tax period of the return. Refer to Job Aid 2431-009 for command code instructions.
      Research CC IMFOLT for a TC150 to determine if a return has already posted.
      Research CC ERINV to determine if there is a return in ERS.

    2. Research results:
      If a TC150 has posted for the tax period of the return, route to Files unit to be associated with return.
      If there is already a return in ERS for the same tax period, route to rejects.
      If no TC150 has posted and no return is in ERS, send the informational return marked "Blocked or Deferred Income" back to the taxpayer using Form 3531 and the following literal paragraph: "We received your informational return regarding deferrable income, pursuant to Rev. Rul. 74-351 however, we have not received an original tax return. You must attach this document to your original tax return when you file your return for the same tax period."

Correspondence Imaging System (CIS) Returns
  1. CIS returns are identified by a unique 10 character alpha numeric identifier that begins with the letters CIS (e.g. CIS1A2BCD1).

  2. Process CIS returns as original filings and circle any notations of duplicate, amended or similar statements.

  3. Re-edit any valid black edit marks in red on photocopied returns.

    Exception:

    Do not re-edit CIS returns when editing is underlined in red.

  4. Correspond for any missing required information as identified in the line-by-line instructions (except for a missing signature).

    Exception:

    If correspondence is required and Form 13596 and/or Form 3893 is attached, route the return back to Accounts Management.

Combined Tax Liability Return
  1. Returns with any of the following conditions are considered combined tax liability returns:

    • More than one tax period

    • More than one type of tax

    • More than one person filing a joint return other than those taxpayers considered to be spouses.

    • More than one person filing a single return

  2. If any of the conditions in (1) apply, edit CCC "Y" and an Action Trail on the return.

  3. Take no action when the return shows an ITIN and supporting documents reflect an SSN for the same taxpayer.

Community Property or Registered Domestic Partnership Return
  1. If there is an indication of Registered Domestic Partnership, "RDP" , "CCA 201021050" , or "CCA" on the return or an attached Form 8958, Allocation of Tax Amounts Between Certain Individuals in Community Property States, or allocation statement, edit Action Code "430" .

  2. "X" any fractional exemption claimed.

  3. "X" the amount claimed for Excess Social Security taxes when wages are less than $64,200.

    Note:

    The maximum amount of earnings subject to Social Security tax is $128,400. Half of that equals $64,200.

  4. Edit RPC "C" when there is an indication of a pro-rata share and both of the following additional conditions apply:

    1. A S-TIN is present

    2. For TY18 and later, Schedule 1 has no entries or,
      TY17 and prior, lines 7 to 21 and 23 to 36, Form 1040 or lines 7 to 14b and 16 to 20, Form 1040A have no entries.

Form 8938, Statement of Foreign Financial Assets
  1. Use the following information for processing ALL Form 8938, Statement of Foreign Financial Assets, regardless of tax years.

    January through September - (Recovery Processing) October through December - (Simultaneous Processing)
    Process Form 1040 using current coding instructions, including the editing of CCC "H" .
    1. Fully code Form 1040, including the editing of CCC "H" .

    2. Only one Form 8938, pages 1 and 2, can be processed. If multiple Forms 8938 are attached, select the form that has the highest account, line 4 in Part V; or highest value, line 4 in Part VI, and delete the others.

      Note:

      Up to 25 pages of the "Continuation Statement" can be processed.

    3. Pull the Form 8938 from the return and sequence it to the back of the Form 1040 package, attaching the Form 8938 so that it is back-to-back with the parent return.

      Note:

      Sites may determine the best method of identifying Forms 8938 for transcription.

    4. Place the Form 1040 with the Form 8938 attached in a designated bin for collection by Code & Edit Clerical function.

    Note:

    For TY14 and prior Forms 1040 or Forms 8938, do not pull, edit CCC "H" and continue processing.

    Reminder:

    Do not pull or convert TY17 and prior Forms 1040A or Forms 1040EZ with Form 8938 attached, unless other conversion criterion is present.

    Reminder:

    Do not move or delete documents which will not be transcribed that are in order ahead of Form 8938.

  2. Management may implement simultaneous processing early. Coordinate with local Planning and Analysis Staff prior to implementing simultaneous processing to ensure pipeline resources are adequate and PCDs are not impacted.

Form 8379, Injured Spouse Allocation Return
  1. An "Injured Spouse" claim may be filed by one spouse to protect his or her share of a joint overpayment. These returns either have "Injured Spouse" written on them or Form 8379, Injured Spouse Allocation, is attached.

  2. Form 8379 may be filed with an original return or by itself. Claims filed without an original return should be routed to ICT.

  3. Remove an unnumbered Injured Spouse return from a block that is not an Injured Spouse block only if the return is a refund/credit elect.

  4. If an Injured Spouse claim is attached to a numbered return that is not in an Injured Spouse block:

    1. Attach Form 4227 and note "Injured Spouse" .

    2. Edit Action Code "611" .

  5. If a current year Form 1040X is attached to a return with an Injured Spouse indication, take the following actions:

    1. "X" the Form 1040X and do not detach the Form 1040X from the return.

    2. Rebatch the return to an Injured Spouse block following the instructions in (3) or (4) above.

  6. If correspondence is required on an Injured Spouse return, research for TC150 prior to corresponding.

    1. If TC150 is present, move the Form 8379 to the front, delete (X) the return and route to ICT.

    2. If no TC150 is present, correspond.

Form 8857, Innocent Spouse Relief Request
  1. A taxpayer may make a claim for relief from joint and separate tax liability or "relief from liability for community income" in the following four ways:

    1. Innocent Spouse Election - An election made by a person who filed a joint return and later showed that:
      • The understatement of tax on the return was attributable to an erroneous item of the other spouse, of which the electing spouse had no knowledge or reason to know,
      AND considering all the facts and circumstances, it would be unfair to hold the electing spouse liable for the underpayment of tax.

    2. Relief from Community Property Liability - An election made by a person who did not file a return as married filing jointly in a community property state and later showed that:
      • He or she did not include an item of community income in gross income that was attributable to the other spouse, and did not know or have reason to know of that item of community income.
      AND considering all the facts and circumstances, it would be unfair to hold the taxpayer liable for the understatement of tax.

    3. Separate Liability Election - An election made by a person who filed a joint return and later claimed separate liability from their spouse. The electing spouse must be legally separated, living apart for 12 months or more, or no longer married to the spouse with whom he or she filed the joint return at the time the claim was filed and must not have actual knowledge of the item(s) giving rise to the deficiency.

    4. Equitable Relief - Request made by a person who filed either a joint return, or a return that was not filed as "married filing jointly" in a community property state, and later showed that considering all of the facts and circumstances, it would be inequitable to hold that person liable.

  2. Taxpayers are instructed to file Form 8857, Request for Innocent Spouse Relief, to request relief if they are making the above claims.

  3. Edit CCC "3" when the taxpayer either attaches correspondence to the return and indicates "Innocent Spouse" , "Separate Liability Election" , "Equitable Relief" or "Joint and Several Liability" or when a Form 8857 is attached to the return.

  4. Innocent spouse relief requests are processed at Cincinnati Submission Processing Center (CSPC) only. When the taxpayer either attaches correspondence to the return that identifies him/her as a claimant or when Form 8857 is attached to the return:

    1. Detach and date stamp the correspondence/Form 8857 and all supporting documentation.

    2. Edit Action Trails on both the return and the correspondence/Form 8857.

    3. Prepare Form 4227, notating "Innocent Spouse Request" and attach it to the detached item.

    4. Give the request to the work leader.

    5. Leave the return in the block and continue processing.

  5. Send all claims to CSPCdaily, using the following address:
    Internal Revenue Service
    CSPC (Cincinnati Submission Processing Center)
    Stop #840F
    201 West Rivercenter Boulevard
    Covington, KY 41011

  6. For CSPC, follow local procedures for routing the claim to Examination.

International Return
  1. 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 APO/DPO/FPO addresses).

    • Form 390 (American Samoa), American Samoa Individual Income Tax Return

    • Form 482.0, Individual Income Tax Return/Formulario 482 (Puerto Rico), Planilla de Contribucion Sobre Ingresos de Individuous

    • Form 1040CM (CNMI), CNMI Territorial Individual Income Tax

    • Form 1040 GUAM, Guam Individual Income Tax Return

    • Form W-2 from American Samoa (W-2AS)

    • Form W-2 from CNMI (W-2CM)

    • Form W-2 from Guam (W-2GU)

    • Form W-2 from Virgin Islands (W-2VI)

    • Form 499R-2/W-2PR (Puerto Rican Withholding)

    • Form 1040NR, U.S. Nonresident Alien Income Tax Return

    • Form 1040NR-EZ, U.S. Income Tax Returns for Certain Nonresident Aliens With No Dependents

    • Form 1040-PR, Planilla para la Declaración de la Contribución Federal sobre el Trabajo por Cuenta Propia (Incluyendo el Crédito Tributario Adicional por Hijos para Residentes Bona Fide de Puerto Rico)

    • Form 1040-SS, U.S. Self-Employment Tax Return

    • Form 1042-S or letter signed by "Competent Authority" , Form SSA-1042S, or Form RRB-1042S

    • Form 2555, Foreign Earned Income

    • Form 2555-EZ, Foreign Earned Income Exclusion

    • 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 the Northern Mariana Islands (CNMI)

    • Form 8288-A, Statement of withholding under Section 1445

    • Form 8689, Allocation of Individual Income Tax to the U.S. Virgin Islands

    • Form 8804, Annual Return for Partnership Withholding Tax Under Section 1446

    • Form 8805, Statement of Withholding under Section 1446

    • Form 8813, Partnership Withholding Tax Payment

    • Form 8833, Treaty-Based Return Position Disclosure

    • Form 8854, Initial and Annual Expatriation Information Statement

    • Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Possession

    • Dual Status -- Form 1040 and Form 1040NR filed together for the same tax year, "Dual Status" or "D/S" indicated on the return (taxpayer claims part year residence and part year non - residence). Always leave Form 1040 and Form 1040NR or Form 1040NR-EZ for the same taxpayer together.

    • Nonresident Alien (NRA) -- Primary or both taxpayers are nonresident Alien

      Exception:

      Primary taxpayer is an NRA with no Social Security Number (SSN); however, secondary taxpayer has an SSN and W-2 income.

    • International Tax Treaty -- taxpayer indicating exemption or exclusion of tax and/or income due to an International Tax Treaty.

      Note:

      An American Indian treaty return is not considered an international return. If no international condition exists, consider it a domestic return.

    • Treaty Trader

    • Fulbright Grantee

    • Notation of "Streamlined" on the return

    • Form 14653 (Streamlined Foreign Offshore)

    • Form 14654 (Streamlined Domestic Offshore)

    • Other Streamlined certification

    • IRC § 871, § 893, § 911,§ 913, § 931, § 932, § 933, § 934 or § 935 of the Internal Revenue Code (IRC) or Section 6114, is notated anywhere on the return.

      Caution:

      If none of the International conditions listed above are present, consider it a domestic return and process it accordingly.

  2. Do not route returns to AUSPC unless one of the forms or conditions at IRM 3.11.3.6.2.13(1) is present or the taxpayer excludes income.

    Note:

    Foreign income (for TY18 and later, usually reported on line 1, Form 1040, line 21, Schedule 1 or, for TY17 and prior, line 7 or 21, Form 1040), FEC noted on TY18 and later, line 1, Form 1040, for TY17 and prior, on line 7, Form 1040, or the presence of Form 1116 alone does not qualify for treatment as an international return. Do not forward these returns to AUSPC.

  3. Immediately forward international returns -- in their entirety -- to AUSPC at the following address:
    Internal Revenue Service
    Mail Stop 6063 Austin Submission Processing Campus
    P.O. Box 934
    Austin, TX 78767

    For Private Delivery Service (PDS) Mailing:
    Internal Revenue Service
    Mail Stop 6063 Austin Submission Processing Campus
    3651 S IH 35
    Austin, TX 78741

  4. If the return is unnumbered, take the following actions:

    1. Stop editing.

    2. Route the entire return to AUSPC.

      Exception:

      AUSPC only: Route to Receipt & Control for rebatching.

  5. If the return is numbered, take the following actions:

    1. Leave the return in the batch and edit Action Code "651" . (See Figure 3.11.3-6.)

      Exception:

      AUSPC only: Edit Action Code "610" for non-remit returns or "611" for remit returns.

    2. Stop editing.

    Figure 3.11.3-6

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Joint Committee Return
  1. Route to Examination returns with any of the following characteristics:

    1. The original tax liability for TY18 and later, on line 11a, Form 1040 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , and the total credit amount reported on line 12 of TY18 and later Form 1040 is ≡ ≡ ≡ ≡ ≡ or more.

    2. The original tax liability for TY17 and prior, on line 44 of Form 1040 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , and the total credit amount reported on TY17 and prior, line 55 of Form 1040 is ≡ ≡ ≡ ≡ or more.

    3. The original tax liability for TY17 and prior, on line 44 of Form 1040 is reduced by ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ by any combination of credits or disaster loss from the tax period immediately following the tax period of the return. For example, the return is for tax period 1812, but the disaster loss occurs during 2019.

  2. Prepare Form 4227 and indicate "potential Joint Committee return" when returns with the characteristics listed in (1) above are identified.

    1. Edit Action Code "334" and leave the return in the block if it is numbered.

    2. Pull unnumbered returns for routing to Examination.

  3. Edit CCC "O" and Audit Code "L" if after review Examination indicates the return is a "Joint Committee Return" .

Misblocked Return
  1. All documents in a block of work must be the same type of return. A misblocked return is one found in a block of work other than the one in which it belongs.

    Example:

    Current Year Form 1040 in a Prior Year Form 1040A batch or an ITIN return in a batch of regular work.

  2. Remove an unnumbered misblocked return for rebatching. (This also includes when an unnumbered return is found in a numbered batch or a numbered return in an unnumbered batch.)

    Caution:

    To ensure accuracy in the rebatching of returns the remittance indicator must be true to that batch. For example, all full-paid returns must be batched together, all part-paid returns, etc. Also, credit card payments returns must be identified as remittance returns and batched as full or part paid returns.

  3. Numbered returns must not be removed from the block. Instead, take the following actions for all numbered returns:

    If Then
    Form 1040 is found in a Form 1040A or Form 1040EZ block, Edit Action Code "610" for non-remit returns or Action Code "611" for remit returns.
    Form 1040A or Form 1040EZ is found in a Form 1040 block, Convert entries to Form 1040 format and continue editing.
    Form 1040A is found in a Form 1040EZ block, or vice versa, Edit Action Code "610" for non-remit returns or Action code "611" for remit returns.
    If a prior year return is found in a current year block, Process the return using the prior year instructions in IRM 3.11.3.71.
    Form not in the 1040 series is found in a Form 1040 block, Refer the return to your work leader.

    Note:

    When editing either Action Code "610" or "611" , attach Form 4227 with an explanation of the action needed.

Misfiled Return
  1. A misfiled return is a Form 1040, TY17 and prior Form 1040A or Form 1040EZ filed instead of the correct Business Master File (BMF) Form.

  2. Route Form 1040, TY17 and prior Form 1040A or Form 1040EZ with any indication of Limited Liability Corporation (LLC) in the caption or signature areas to Entity for research.

    Note:

    If the return has already been cleared through Entity, the phrase "Cleared by Entity" will appear on the return.

  3. Send Form 1040, TY17 and prior Form 1040A or Form 1040EZ back to the taxpayer with box 24 checked on Form 3531, if the return meets any of the following criteria:

    • Business entity with an EIN

    • Business entity missing a TIN

    • Individual Master File (IMF) caption with an EIN

    • Individual and business names in the caption area with an EIN.

Reinput Return
  1. Return the block to Receipt and Control when Form 3893, Re-Entry Document Control, is not attached to a block of reinput returns.

  2. Take the following actions when processing reinput returns:

    1. Delete any unnecessary Action Codes.

    2. Delete any incorrect codes and edit marks.

    3. "X" any purple or blue corrections and re-edit them in red when the marks were made to correct erroneous Code & Edit marks.

    4. Do not delete the original TE number or re-stamp the document with your TE number.

    5. Follow the special editing instructions under "Remarks" on the Form 3893 (See Figure 3.11.3-7.)

    6. Move the Form 3893 to the back of the document, except for the first return, on all blocks with duplicate DLNs.

      Reminder:

      Edit a newly issued SSN/ITIN on all attached Form or Schedules when one is required.

      Note:

      Some re-entry returns may be rejected e-file returns coming from Accounts Management. These returns are identified by the presence of Mod e-File printouts (TRPRT- valid for prior year only) in lieu of the actual return. The printout will have "TRPRT PRINT DO NOT PROCESS" or "Efile Graphic Print" present. Do not correspond for missing signatures on these types of returns.

    Figure 3.11.3-7

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    Please click here for the text description of the image.

  3. Use the following instructions when editing a received date from the DLN on either a current or prior year reinput return.

    If the reinput return was originally numbered as a Then
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Non-remittance return, Edit the received date by using the calendar date indicated by the original DLN, minus 10 days.

    Note:

    Remittance returns are identified by either a DLN or a branded (i.e., underlined) money amount in the balance due area of the return.

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Also see the received date instructions in IRM 3.11.3.8.2 for additional information on received date editing.

  5. Edit Action Code "640" when required information is missing. Also attach Form 4227 indicating "Void to Originator" and the reason (e.g., "Missing Schedule A" ). Do not correspond.

    Exception:

    Do not input Action Code "640" or route to originator if prior correspondence has been issued and no reply has been received. Follow normal "no reply" procedures.

  6. If Box 15 on Form 3893 directs you to process the return as a non-remit:

    1. Delete all green or blue marks underlining money amounts.

    2. Delete all green or blue written money amounts.

Returns Secured by Collection
  1. A TC59X–XX or notation of Integrated Collection System ("ICS" ) is entered by Collection in the upper-left margin of Form 1040, TY17 and prior Form 1040A or Form 1040EZ on secured returns.

    Exception:

    TC59X-18 is not an indication of a secured return.

    Note:

    Do not research for TC150 on Secured Returns.

  2. Do not correspond or research for Forms W-2 on secured returns.

    Note:

    This includes support for EIC when wages are present or excess Social Security Tax (SST) is present. Do not correspond for missing or photocopied signature if "Process as Original" is present on the return.

  3. Do not refer unprocessable returns secured by Collection to the Collection unit, including those returns with CP 515 or CP 518 attached with notation of "For Signature Purposes" present.

  4. Refer to the Examination case information in IRM 3.11.3.6.1.5 for instructions on returns secured by Examination.

  5. Route a secured return with missing or invalid signature back to the originating Collection function unless "Process as Original" or "PAO" is present on the return.

Short Period Return
  1. Taxpayers can file a return for fewer than 12 months only under one of the following conditions:

    1. An application or authority to file a short period return has been approved by the IRS (Form 1128).

    2. The return is filed under Treas. Reg. Section 1.443-1

    3. The return is filed under Section 1398 (Bankruptcy) Election or Second Short Year after Section 1398 Election.

    4. The taxpayer died during the current processing year and is filing to date of death. (See the decedent return editing instructions in IRM 3.11.3.10.)

    5. The return is the final return for the taxpayer.

  2. Correspond for an explanation of the taxpayer's authority to file a short period return when none of the conditions in (1) above apply.

    1. Complete Form 3531/6001, using fill-in "4" , per Exhibit 3.11.3-17.

    2. Edit Action Code "211" when using Form 6001.

  3. Only Form 1040 may be filed as a short period return. Convert TY17 and prior Form 1040A or Form 1040EZ to TY17 Form 1040. See IRM 3.11.3.70 for instructions on converting returns.

  4. Short Period returns require the following additional editing:

    1. Edit CCC "Y" and an Action Trail.

    2. Edit the ending date of the tax period, using "YYMM" format.

    3. Edit the received date when one is not already present.

  5. Determine the number of quarters covered by the short period return when Schedule SE is attached. The self-employment (SE) Quarters Covered Code is edited on Schedule SE based on the number of quarters reported on the short period return. Use the following information to determine the number of quarters covered:

    1. A fraction of a quarter counts as a full quarter.

    2. The quarters begin in January, April, July, and October.

  6. Edit the SE Quarters Covered Code in the margin to the right of line 4 in the section used Section A or Section B of Schedule SE. Code the SE quarters covered as follows:

    • Code "1" for one quarter.

    • Code "2" for two quarters.

    • Code "3" for three quarters.

    Note:

    Do not code for four quarters.

Substitute for Return (SFR)
  1. An SFR return is prepared by Examination, Collection, or the Automated SFR (ASFR) function.

  2. Do not correspond with the taxpayer for missing information - including signature - on an SFR return. Instead, prepare Form 4227 to route the SFR return to the originating function when any of the following information is missing:

    • Filing status

    • Name(s)

    • TIN(s)

  3. Edit RPC "L" and CCC "B" when there are no significant T-line entries on:

    • TY18 and later, Lines 1 through 23 of Form 1040

    • TY17 and prior, Lines 7 through 79 of Form 1040

    • TY17 and prior, Lines 7 through 51 of Form 1040A

    • TY17 and prior, Lines 1 through 14 of Form 1040EZ

  4. Take the following actions when an SFR return has the words "Possessor of Certain Cash" written on it:

    1. Edit the tax period if other than 1812.

    2. Process the return with a temporary TIN and route the return to Entity using Form 4227 for the assignment of the TIN.

    3. Edit "Possessor of Certain Cash" as the AIL.

  5. Edit an SFR return that has either "IRP" or "RTF" written on it as follows:

    1. Edit the tax period if other than 1812.

    2. Edit today's date as the received date.

    3. Edit CCC "3" and CCC "B" .

  6. Do not refer SFR returns without significant entries for statute clearing. Instead, edit RPC "L" , CCC "B" and RPC "K" .

Automated Substitute for Return (ASFR)
  1. Route ASFR returns to the Collections unit referenced in the attached Letter 2566, Letter 3219, or pink Form 3531, if present. If ASFR is notated at the top of the return or an ASFR date stamp is present as the only indication, route the return to Austin or Fresno Submission Processing Centers (FSPC) at the addresses shown below.

    • AUSPC, 3651 South IH 35, Stop 5501, Austin, TX 78741

    • FSPC, 5045 E. Butler, Stop 81304, Fresno, CA 93727-5136

    Note:

    AUSPC and FSPC route to Collection unless Collections has cleared the return. If Process as Original or Process as Original Faxed Return and 59X-09X notated on return, fully code and process the return.

  2. Do not correspond. Do not send the return back to the taxpayer.

52-53 Week Return
  1. This is the only type of return that may have a tax period ending prior to the last day of a month.

  2. Use the following table to determine the correct tax period for a 52-53 week return.

    If Then
    Within the first half of the month, Edit the previous month as the end of the tax period.
    Within the second half of the month, Edit that month as the end of the tax period.
Blind Trust Returns
  1. Taxpayers who are presidential appointees are permitted to file their individual tax returns through a trustee of a blind trust.

  2. If there is any indication on the return or an attachment, a General Power of Attorney, or Form 2848 attached that indicates "Blind Trust" , see IRM 3.28.3.3.

  3. The POA, Form 2848 must be processed to the CAF to reflect the Blind Trust Indicator on Master File to ensure that no correspondence is generated to the taxpayer.

Tax Period

  1. These instructions for tax period editing include:

    • General instructions

    • Current calendar year returns

    • Fiscal year returns

    • Prior year returns

    • Early filed returns

Tax Period, General Instructions

  1. The tax period is indicated at the top of the form above the name area and/or the TIN blocks.

  2. Consider all returns to be current calendar year (i.e., 1812) returns, unless otherwise indicated.

  3. Edit tax periods other than the current calendar year to the right of the preprinted tax year in "YYMM" format (e.g., "1903" ). (See Figure 3.11.3-8.)

  4. Current year returns include:

    1. Form 1040 - Tax period cannot end earlier than 1812 (December 2018) or later than current year and month

    Figure 3.11.3-8

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    Please click here for the text description of the image.

Current Calendar Year Return

  1. Process the return as a current calendar year return when the tax form is for a prior year, but the Form(s) W-2 is for the current calendar year. Pull for work leader.

  2. The work leader will:

    • Convert to a current year by dummying a current year Form 1040

    • Include any Schedules 1 - 6 as necessary.

  3. When the taxpayer attaches prior year forms or schedules to a current year return, re-number T-lines to match the current year form or schedule.

  4. Number T-lines with entries when line numbers are missing.

Fiscal Year Return

  1. A fiscal year is twelve full months ending on the last day of any month other than December.

    1. Edit the tax period in YYMM format.

    2. Edit the received date when one is not already present.

  2. Edit Action Code "355" when the ending date of the tax period is after the current date except for decedent returns.

    Note:

    See IRM 3.11.3.10.6 for information on short-period decedent returns.

Prior Year Return

  1. A prior year tax return is a Form 1040, Form 1040A or Form 1040EZ filed for a tax year prior to the current processing year return.

  2. Refer to IRM 3.11.3.71 for prior year editing instructions.

  3. Refer to IRM 3.11.3.71.2 for the statute of limitations instructions on prior year returns.

  4. Process the return as a prior year return when the tax form is for the current year, but the Form(s) W-2 is for a prior year. Pull for work leader. IRM 3.11.3.71

  5. The work leader will:

    • Convert to a prior year by dummying a 2017 year Form 1040

    • Refer to the line-by-line instructions for prior year editing in IRM 3.11.3.71 for additional information.

Early Filed Return

  1. If a return reflects a future tax year, take the following actions:

    • Edit the caption.

    • Edit tax period in YYMM format.

    • Edit the Received Date when one is not present.

    • Edit Action Code "480" .

Received Dates

  1. The received date is the date that a return was received by the IRS.

  2. Information and instructions about received dates included in this subsection of the manual include:

    • General instructions

    • Timely received dates

    • Determining the received date

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Late-filed returns

    • Extensions

    • Reasonable cause criteria

Received Dates, General Instructions

  1. A received date is always required when the return is:

    • Amended

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Fiscal year, prior year, or short year

    • Early-filed for a decedent (filed before the close of the current year)

    • Processed on June 4, 2019, or later, or the Julian date in the DLN is 155 or later (156 or later in leap years; e.g. 2020, 2024, etc.)

      Note:

      If return is received after the ≡ ≡ ≡ ≡ ≡ ≡ without a received date see IRM 3.11.3.8.2. Do not edit a received date if return is determined to be timely.

    Exception:

    See IRM 3.11.3.8.5(3).

  2. Edit the received date on the front of the return in the following locations:

    1. TY18 and later, Form 1040 in the empty space to the right of "Dependents (see instructions)"

    2. TY17 and prior, Form 1040 to the right of line 6d

    3. TY17 and prior, Form 1040A to the right of line 6d

    4. TY17 and prior, Form 1040EZ to the left of line 6

  3. Edit the received date in "MMDDYY" format when it is required and not already present. MMDDYY format is Month Month Day Day Year Year. For example, April 23, 2019, when edited in MMDDYY format is "042319" .

  4. Perfect the received date when it is required and not legible or is incomplete. When perfecting, edit in the MMDDYY format.

    Note:

    A dash (-) in front of a single digit is considered incomplete (i.e. Nov -5 2018) and must be perfected.

  5. If a return contains a valid received date on any page other than the front of the return or in the caption area, edit the same received date as instructed in (2).

  6. Circle the received date when it is present on a return that does not need one. See Figure 3.11.3-9.

  7. Circle a received date that has been X-ed.

  8. Circle all but the earliest valid received dates (including Statute or other valid IRS organization's received dates) when there are multiple received dates present and a received date is required. See IRM 3.11.3.8.2.1(2). Taxpayer Advocate Service (TAS) received dates are not valid received dates. If multiple received dates are identical and in the appropriate location on the return, circle all but one received date.

    Exception:

    When the return has been mailed back for missing signature(s) and multiple received dates are present, see IRM 3.11.3.8.2(3).

  9. If a return has been faxed to another area of the service and then sent to Code & Edit for processing, do not edit the Enterprise Electronic Fax (EEFax) date as the IRS Received Date. Edit the received date following normal procedures.

    Caution:

    The EEFax Date cannot legally be used as the IRS Received Date.

    Figure 3.11.3-9

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Determining the Received Dates

  1. Determine the received date in the following priority when it is required and there is no valid date stamp or handwritten received date:

    1. Latest postmark on the envelope or latest date from a private delivery service mark. (See Figure 3.11.3-10 for TY18 and later and Figure 3.11.3-11 for TY17 and prior.)

      Note:

      When the envelope certified mail receipt is not attached, use the postmark date stamped or handwritten on the return to determine the received date.

    2. Service Center Automated Mail Processing System (SCAMPS) digital dates.

    3. Latest date by the taxpayer's signature(s). (See Figure 3.11.3-10 for TY18 and later and Figure 3.11.3-11 for TY17 and prior.)

      Exception:

      Use the signature date on prior year returns only when it is signed this year. Do not use the signature date to determine the received date for replies to correspondence.

    4. Julian date minus 10 days in the DLN.

    5. Today's date minus 10 days.

    Exception:

    See the instructions in IRM 3.11.3.6.2.17 when determining the received date for a reinput return.

  2. If the stamped received date on a current year return is three months or more prior to the current date, search the return for an indication the received date is incorrect (e.g., a postmark date or signature date after the received date). If the received date is determined to be incorrect, circle it and edit a new received date following the instructions at IRM 3.11.3.8.2(1).

  3. Always review each return for the words, "Returned for Signature" or similar statement and a date present in the lower left corner of the return. These are returns that were originally received missing a signature and were mailed back to the taxpayer. If a date and the notation "Returned for Signature" or similar statement is present, refer to the following instructions for editing the received date:

    1. If the return is Balance Due and a received date is present showing a date within 30 days after the date present in the lower left corner, use the date sent back for signature as the received date. Use the most recent mail-back date when multiple dates are present. Circle out any other received date(s) that may be present. Figure 3.11.3-12.

      Note:

      If the return for signature date is missing and it can be determined that the response was received within 30 days, edit the earliest received date when more than one is present. If only one received date is present, delete that date and edit 041519.

    2. If the return is Balance Due and a received date is present showing a date more than 30 days after the date present in the lower left corner, honor the latest received date. Circle out any other received date(s) that may be present.

    3. If the return is a Refund, Credit Elect or Zero balance return, honor the latest received date. Circle out any other received date(s) that may be present.

      Exception:

      For Statute Returns only: if a received date is present showing a date within 30 days after the date present in the lower left corner, circle out the latest received date and edit the earlier received date.

      Reminder:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Figure 3.11.3-10

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    Please click here for the text description of the image.

    Figure 3.11.3-11

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    Please click here for the text description of the image.

    Figure 3.11.3-12

    This is an Image: 33440011.gif
     

    Please click here for the text description of the image.

Types of Received Dates
  1. Accept these three types of received dates:

    • IRS campus date stamp with the word "received" - to include Accounts Management, ACSS, Collections, or other valid IRS organizations

      Note:

      A received date edited or stamped by the Taxpayer Advocate Service (TAS) is not a valid IRS received date.

    • IRS area/territory office date stamp

      Note:

      The city and functional area within the site (CSCO, Exam, ICT, CIS, AM, for instance) should appear in the date stamp.

    • Valid handwritten or typed received date

      Note:

      A handwritten or typed received date edited in the empty space to the right of Dependents (see instructions) on TY18 and later returns or on TY17 and prior returns in the line 6d area of Form 1040 or Form 1040A (line 6 of Form 1040EZ) by an IRS employee in Submission Processing or IVO is valid. A clear indication that a handwritten or typed received date has been edited by IVO will be the presence of SPC "B" , "M" and/or "IVO" noted or stamped in the upper left margin. Generally, the IVO-edited received date will be earlier than the original, stamped received date.

  2. When there is no valid date stamp and the handwritten or typed received date is not valid, determine the received date using the instructions in IRM 3.11.3.8.2.

Post Office Marks
  1. Accept all valid post office marks whether United States Postal Service (USPS), foreign country postmarks, or USPS private meter marks.

  2. Valid Post Office marks are:

    • Postage Validation Imprinter (PVI) labels displaying the USPS eagle

    • Killer bar strips or other cancellation marks with a date, city, and state

    • USPS Metered postmarks

    • Private Metered Marks (identified by the absence of "USPS" in the postmark)

  3. Use the following chart to determine the correct editing when only a private meter postmark is present.

    If the document is Then
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Private Delivery Service (PDS) Marks
  1. A private delivery service (PDS) is a business which delivers mail or packages within an agreed upon schedule (e.g. overnight or same day delivery). The "timely mailing treated as timely filing" rule now applies to some PDSs. When the rule applies to a PDS, it is referred to as a "designated" PDS.

  2. Do not use marks from a non-designated PDS to determine whether a return is timely filed. The "timely mailing treated as timely filing" rule applies only to the USPS and to designated PDSs.

  3. Accept all designated PDS marks. The only designated delivery services are listed below:

    1. United Parcel Service (UPS)
      • UPS Next Day Air Early A.M.
      • UPS Next Day Air
      • UPS Next Day Air Saver
      • UPS Second Day Air
      • UPS Second Day Air A.M.
      • UPS Worldwide Express
      • UPS Worldwide Express Plus

    2. Federal Express (FedEx)
      • Fed Ex First Overnight
      • Fed Ex Priority Overnight
      • Fed Ex Standard Overnight
      • Fed Ex Two Day
      • Fed Ex International Next Flight Out
      • Fed Ex International Priority
      • Fed Ex International First
      • Fed Ex International Economy

      Note:

      Do not use "FedEx Powership 3" labels for determining the mail date. See Figure 3.11.3-13.

    3. DHL Express
      DHL Express
      DHL Express Worldwide
      DHL Express Envelope
      DHL Import Express
      DHL Import Express Worldwide

  4. Use the instructions in IRM 3.11.3.8.2 for determining the date a return was received whether the mail marks are from a designated or non-designated PDS.

    Figure 3.11.3-13

    This is an Image: 33440012.gif
     

    Please click here for the text description of the image.

Timely Filed Returns

  1. For 2019, a current-year return is a return filed for tax year 2018. A current calendar-year return (1812) is timely filed when it is mailed on or before the due date of April 15, 2019.

  2. Any return-other than a current calendar-year timely-filed return-always requires a received date.

  3. Generally, a current calendar-year (1812) return received on or before April 15, 2019, does not require a received date.

  4. For current calendar-year (1812) other than full-paid return, received on or before April 15, 2019:

    If the document is Then
    Unnumbered and being processed before June 4, 2019, Circle the received date when present.

    Exception:

    NEVER circle a received date that has been edited in green ink.

    Numbered with a DLN Julian date of 154 or earlier (155 or earlier in leap years), Circle the received date when present.

    Exception:

    NEVER circle a received date that has been edited in green ink.

    Unnumbered and being processed on June 4, 2019, or later, Edit "041519" as the received date if one is not present.
    Numbered with a DLN Julian date of 155 or later (156 or later in leap years), Edit "041519" as the received date if one is not present.

    Note:

    Leap years are 2020, 2024, etc.

"≡ ≡ ≡ ≡ ≡ ≡ "

  1. By law, a timely-mailed return is a timely-filed return. This applies to both USPS and designated PDS mail.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. For current calendar-year (1812), other than full paid return, received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ :

    If the received date is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Then
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Circle the received date.

    Exception:

    Never circle a received date that has been edited in green ink.

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Circle the received date.

    Exception:

    Never circle a received date that has been edited in green ink.

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Circle the received date. Edit a received date of "041519" .
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Circle the received date. Edit a received date of "041519" .

    Note:

    Leap years are 2020, 2024, etc.

    Exception:

    If penalties or interest are indicated by Examination or Collection and the return is part- or full-paid, then edit a received date of "041519" and prepare Form 3471. See IRM 3.11.3.3.4.1 for additional information and instructions. Use the instructions in IRM 3.11.3.14.3.5 when penalty and interest amounts are entered by the taxpayer.

Late Filed Returns

  1. A return is delinquent when it is filed after the due date without an approved extension.

  2. ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

  3. When the received date on a current calendar-year (1812) return ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " or later), examine the envelope and:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Extensions

  1. Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, may be filed to extend the due date for filing an individual tax return until October 15, 2019.

  2. Extension forms are not required to be attached to the return when filed.

  3. Take one of the following actions when an original Form 4868 is attached to a return:

    If the Form 4868 is Then
    Not for the Form 1040 to which it is attached (e.g., another tax period, another taxpayer), Detach the form and route it to Receipt and Control.
    For the Form 1040 to which it is attached, Leave the form attached to the return.
  4. Edit CCC "R" on returns received after April 15th when Form 4868 or Form 6401 is attached and an ITIN or IRSN is present in the primary Social Security Number (SSN) field. Both Individual Tax Identification Numbers (ITINs) and Internal Revenue Service Numbers (IRSNs) begin with the digit "9" .

    Note:

    Delete CCC "N" if it has been edited. CCC "N" is only valid on returns as outlined at IRM 3.11.3.8.7(3).

  5. Examine the envelope postmark date. If the received date is "≡ ≡ ≡ ≡ " or later, and the postmark date or designated PDS mark date is on or before October 15, 2019, edit the postmark date as the received date.

    Exception:

    Edit a timely received date on the return when the taxpayer explains the return is late due to the rejection of a timely-filed electronic return. Postmark date must be within 10 calendar days of notification from the Service that the electronic portion of the return has been rejected or cannot be accepted for processing. (Rev. Proc. 2007-40 and Publication 1345).

  6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Use the instructions in IRM 3.11.3.3.4.1 to prepare Form 3471 when returns are received from Examination or Collection with penalty and interest amounts entered. These amounts will usually be present on Form 4364, Delinquency Computations. Use the instructions in IRM 3.11.3.14.3.5 when penalty and interest amounts are entered by the taxpayer.

Reasonable Cause

  1. Taxpayers are liable for delinquency penalties and interest on the unpaid taxes on returns received after the due date. However, penalties for late filing, or late payment, may be excused when the taxpayer has a reasonable cause for the delay. See Exhibit 3.11.3-8 for examples of reasonable cause.

    Note:

    Reasonable cause does not excuse penalties for failure to make estimated (ES) tax payments properly unless the taxpayer retired after reaching age 62 or became disabled during the tax year or the prior tax year. See Exhibit 3.11.3-8.

  2. Failure to make estimated (ES) tax payments generally cannot be waived due to reasonable cause. See IRM 3.11.3.14.3.5 for waivers of the estimated tax penalty.

  3. Edit CCC "N" on a return that qualifies the taxpayer for a special extension when the received date is later than the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and there is an indication (on the return or an attachment) of any of the following:

    • The taxpayer lives outside the U.S. and Puerto Rico and main place of work is outside the U.S. and Puerto Rico

    • The taxpayer is on military or naval duty outside of the U.S. and Puerto Rico

    • An APO/FPO/DPO address

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. When the taxpayer's reasonable cause statement is not acceptable:

    1. Edit CCC "7" .

    2. Route for correspondence. Letter 854C (Penalty Waiver or Abatement Disallowed/Appeals Procedure Explained), must be issued.

    Note:

    See the correspondence instructions in IRM 3.11.3.5.

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    If the reasonable cause is for Then
    Late filing, Edit CCC "R" , unless CCC "N" has been edited.
    Late payment or a "Section 6020(b)" notation is present, Edit CCC "M" .

Taxpayer Identification

  1. Instructions and information in this subsection of the manual include:

    • General caption information

    • Caption editing

    • Taxpayer identification number

    • Name and additional information lines

    • Mailing address

Caption, General Information

  1. Some instructions for caption editing refer to "name control" . The first four characters of the primary taxpayer's last name is the name control. Refer to Document 7071 if name control editing is required.

  2. Caption information can be printed, typed, or handwritten directly on the return. (See Figure 3.11.3-14)

  3. References to the Taxpayer Identification Number (TIN) include Social Security Numbers (SSN), Individual Taxpayer Identification Numbers (ITIN), Internal Revenue Service Numbers (IRSN), and Adoption Taxpayer Identification Numbers (ATIN).

    Note:

    An ITIN is a unique nine-digit number assigned by the IRS to individuals who must file a U.S. tax return, or are listed as a spouse or a dependent but do not have and cannot obtain a valid SSN. Taxpayers obtain an ITIN by filing Form W-7.

    Note:

    An IRSN is a temporary number assigned to taxpayers for processing purposes only. They are not valid for subsequent years.

  4. Required caption information includes:

    • Primary taxpayer identification number (P-TIN)

    • Secondary taxpayer identification number (S-TIN)

    • Name

    • Additional information line, when required

    • Mailing address

    • City and State

    • ZIP Code

    Figure 3.11.3-14

    This is an Image: 33440013.gif
     

    Please click here for the text description of the image.

Caption Editing

  1. Ensure the S-TIN and name is present in the caption on Married Filing Jointly (MFJ) FS 2 returns. Also ensure that Married Filing Separately (MFS) FS 3 and FS 6 returns have the S-TIN included in the caption. (For definition of Filing Status Codes (FS 2, FS 3, etc.) see IRM 3.11.3.12.1(2).)

    Note:

    Edit the S-TIN from attachments when missing.

    Exception:

    For FS 2 returns only, if the secondary taxpayer's name is missing or illegible and the primary taxpayer's name is present and it can be clearly determined from the signature lines or attachments that the last names are the same, accept the primary taxpayer's name for both taxpayers.

  2. Edit to the caption area any change or addition to caption information made by the taxpayer on an attachment or on the return outside of the caption area. (See Figure 3.11.3-15)

    Exception:

    See IRM 3.11.3.9.2.3 for instructions for perfecting a mailing address.

    Figure 3.11.3-15

    This is an Image: 33440014.gif
     

    Please click here for the text description of the image.

  3. Search the return and attachments for any missing caption information and perfect the caption if all missing information is found. See IRM 3.11.3.9.2.3 for instructions on perfecting a mailing address.

  4. Take the following actions if any required caption information is missing and cannot be perfected, see Figure 3.11.3-16:

    1. Edit (or underline, if present) the name control in the caption area.

      Exception:

      Do not underline the name control when the TIN only is missing from the caption.

      Exception:

      Do not underline name control when correspondence is necessary. Perfect caption information from envelope or through research.

    2. Edit the P-TIN (if not present) in the caption area.

    Figure 3.11.3-16

    This is an Image: 33440015.gif
     

    Please click here for the text description of the image.

  5. Do not re-edit green edit markings in the caption area unless the editing is incorrect.

  6. Do not change the name control when it has been edited in red by; Entity Unit, ITIN Operation, or RPS employees. Use the Entity/ITIN/ RPS editing to perfect the:

    1. Name control for caption.

    2. TIN on attachments - Schedule C, Schedule C-EZ, Schedule H, Schedule SE and Form 4137, Form 5405, Form 8853, Form 8919 and Form 8941.

      Note:

      The name control for a newly assigned ITIN or IRSN may have been edited and/or underlined by the ITIN Operation or Entity Unit.

  7. Underline the Additional Information Line (AIL) (See IRM 3.11.3.9.2.2.2) when:

    1. Present on a return.

    2. The taxpayer indicates information which should be added to the additional information line. Edit and underline the appropriate information.

  8. Delete "also known as" and "AKA" notations, as well as the name associated with the "AKA" when the taxpayer notates "also known as" or "AKA" and included an additional name in the caption area of the return.

Taxpayer Identification Number (TIN)
  1. The primary TIN (P-TIN) belongs to the taxpayer whose name appears first on the return. The secondary TIN (S-TIN) belongs to the spouse. The P-TIN must be in the "Your Social Security Number" block.

  2. Search the return for separate numbers when the P-TIN and S-TIN are the same. Delete the S-TIN if separate numbers are not found.

  3. There are different types of valid TINs:

    • Individual Taxpayer Identification Number (ITIN)Format always begins with the digit "9" and follows the same format as a typical SSN. The valid ranges for the fourth and fifth digits are:
      - 50 through 65
      - 70 through 88
      - 90 through 92
      - 94 through 99
      - Example of an ITIN: 9XX-71-XXXX.

    • Adoption Taxpayer Identification Number (ATIN)Format always begins with the digit "9" and follows the same format as a typical SSN. The fourth and fifth digits will be 93. Example of an ATIN: 9XX-93-XXXX.

    • Internal Revenue Service Number (IRSN)Format always begin with the digit "9" and follows the same format as a typical SSN. The fourth and fifth digits signify the Internal Revenue Service Campus (IRSC) Code where the IRSN was originally assigned or the new expansion range assigned to that campus. Shown below are the numbers allocated to IMF campuses:

    IRSC 4th and 5th Digit Ranges for IRSNs Expansion Ranges
    Austin 18 06
    Fresno 89 10
    Kansas City 09 39

    Note:

    Example of an IRSN assigned from Austin: 9XX-18-XXXX.

  4. Circle any invalid (e.g., "999-99-9999" , "111-11-1111" ) or incomplete TIN that cannot be perfected, including all notations, (e.g., "NRA" , "SSA 205(c)" , "applied for" , "ITIN Rejected" , "No W-7" ).

    Reminder:

    It is not necessary to circle the invalid TIN for dependents when the name has been "X" ’d (e.g., line 6c). If an ITIN or IRSN is newly assigned (edited in red), any other TIN for the same person is invalid and should be circled. Circling is only necessary if the TIN field is a T-Line.

  5. Perfect the TIN, if necessary, on any attached Schedule C, Schedule C-EZ, Schedule H, Schedule SE, Form 4137, Form 5405, Form 8853, Form 8919 and/or Form 8941.

  6. Stop editing the return and take the following actions when Form W-7 or Form W-7(SP) is attached to the Form 1040, Form 1040A or Form 1040EZ:

    1. Unnumbered:
      • Pull the return from the batch. Attach Form W-7 to the front of the return.

      Exception:

      Do not pull if the Form W-7 has a large red "X" editing across the form. Instead, continue processing the return.


      • Edit the received date on Form W-7/W-7(SP) in "MMDDYY" format and route the entire return to Receipt and Control for transshipment to AUSPC.

    2. Complete Form 3696-A to generate Letter 86C. If the ITIN application (Form W-7 or Form W-7(SP)) is for the primary taxpayer, enter an asterisk (*) for the SSN on Form 3696-A. If the ITIN application is for a spouse or dependent, enter the primary TIN on Form 3696–A.

      Exception:

      AUSPC Only: Do not send Letter 86C. Follow local procedures to route both to the ITIN unit.

      Note:

      For numbered returns, edit Action Code "651" .

Primary TIN (P-TIN)
  1. The P-TIN must be in the "Your Social Security Number" block.

  2. Arrow or edit the P-TIN in the proper block if it appears in the "Spouse's Social Security Number" block or elsewhere.

    Exception:

    It is not necessary to arrow or edit the P-TIN to the P-TIN area if the words "applied for" or similar statement is present in the P-TIN area and an ITIN has been edited to the left of the P-TIN area.

    Note:

    If the P-TIN is an edited ITIN on a photocopied return, underline the ITIN.

  3. If "ITIN Rejected" is present in the P-TIN field, route the return to Receipt and Control for rebatching.

  4. If the P-TIN is missing, illegible or incomplete, examine the return and its attachments and edit the P-TIN, if found. Circle an incomplete P-TIN.

    Note:

    If there is an indication the taxpayer used a TIN that is not her/his own, take no action, (e.g., the taxpayer shows an ITIN on the return and an SSN on attached Form W-2).

  5. Correspond for a missing P-TIN when corresponding for other missing return items. If using Form 3531, check box 2, or Form 6001, check box B.

    Exception:

    Do not correspond if the taxpayer indicates "Amish" , "Mennonite" , "none" , "SSN Applied For" , "NRA" , "SSA 205(c)" , or all nines or zeroes.

Secondary TIN (S-TIN)
  1. Circle an S-TIN if it is present and the FS is "1" , "4" , "5" or "7" .

  2. Arrow or edit the S-TIN in the proper block if it appears in the caption area or elsewhere.

    Exception:

    It is not necessary to arrow or edit the S-TIN to the S-TIN area if the words "applied for" or similar statement is present in the S-TIN area and an ITIN has been edited to the left of the S-TIN area.

  3. Edit the S-TIN from the return or attachments if it is missing, illegible, or incomplete, and the FS is "2" , "3" , or "6" . For TY17 and prior returns, edit the S-TIN in the correct block if it is blank and the taxpayer entered a TIN on the line to the right of FS box 3.

    Note:

    If there is an indication the taxpayer used a TIN that is not her/his own, take no action, (e.g., the taxpayer shows an ITIN on the return and an SSN on attached Form W-2).

  4. Correspond for a missing S-TIN when corresponding for other missing return items, unless there is an indication of Amish or Mennonite, ITIN Rejected or Non-resident Alien (NRA). If using Form 3531, check box 2, or Form 6001, check box B.

  5. Edit CCC "J" when the S-TIN is missing, the filing status is 2, 3, or 6 and there is an indication of Amish or Mennonite or "Form 4029" is notated.

Name Line and Additional Information Line
  1. Each return processed must have a legible last name. Research following local procedures when the name is illegible and cannot be perfected.

  2. There are two lines available for taxpayer identification.

    1. The name line is for the first name, middle initial, and last name(s) of the primary and secondary (if present) taxpayer(s). This includes any suffix.

    2. The additional information line (AIL) is used to further identify the taxpayer. For example, additional name, address, or representative information may be shown.

Name Line
  1. Refer to Document 7071, Name Control Job Aid for Individual Master File (IMF) Taxpayers.

  2. Circle the spouse's name when there are two names in the name line, the FS is "1" , "3" , or "4" , and there is only one signature. Perfect the name line to agree with the signature. (e.g., If John signs the return, delete Mary's name from the caption.)

  3. Edit the spouse's name from the signature line when all the following conditions apply:

    • Only one name appears in the first name line.

    • The FS is "2" .

    • Both taxpayers have signed the return.

  4. Do not delete "DECD" or "MINOR" from the name line:

    If the return indicates that Then
    At least one of the taxpayers is deceased, Refer to IRM 3.11.3.10 for complete editing instructions for decedent returns.
    The taxpayer is a minor child, Refer to IRM 3.11.3.11.2.
  5. Circle the brackets and prior last name when a taxpayer places it in brackets and shows a new last name. (See Figure 3.11.3-17.)

    Figure 3.11.3-17

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  6. The primary taxpayer's name will appear on the first line. The secondary taxpayer's name may appear on the first or second line.

  7. Do not separate the primary and secondary taxpayers' names onto different lines if they are both on the same line.

  8. Edit the name line as follows:

    If the taxpayer Then
    Uses a first initial but signs the return with a name,* Edit the name from the signature line to the name line. (See Figure 3.11.3-18)
    Uses a middle initial and no first name,* Edit the name for the middle initial, if present. (See Figure 3.11.3-18)
    Writes his/her last name first, Edit it to appear last. (See Figure 3.11.3-19)
    Enters his/her last name twice and the FS is other than "2" , Circle either name and edit the last name to appear last, if necessary.

    Note:

    *Do not verify the name line with the signature area unless one of these two conditions apply.

    Figure 3.11.3-18

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    Figure 3.11.3-19

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Additional Information Line (AIL)
  1. The additional information line may be found anywhere in the caption area.

  2. Edit and underline the AIL in the following priority:

    1. A fiduciary or taxpayer's representative's name with a title (See IRM 3.11.3.11.) Taxpayer's representatives include:
      • Administrator (ADM)
      • Commissioner (COMM)
      • Conservator (CONS)
      • Custodian (CUST)
      • Executor/Executrix (EXEC)
      • Guardian (GDN)
      • Personal Representative (PER REP)
      • Trustee (TR)

    2. Name of a parent signing for their minor child.

  3. Underline the AIL (see Figure 3.11.3-20), when present in the caption area, in the following priority:

    1. A fiduciary or taxpayer representative name with a title (See IRM 3.11.3.11.) Taxpayer representatives include:
      • Administrator (ADM)
      • Commissioner (COMM)
      • Conservator (CONS)
      • Custodian (CUST)
      • Executor/Executrix (EXEC)
      • Guardian (GDN)
      • Personal Representative (PER REP)
      • Trustee (TR)

    2. Name of a parent signing for their minor child.

    3. Name of a Power of Attorney (POA) (See Figure 3.11.3-21.)

    4. Name of a person not meeting the criteria listed in a, b, or c above (e.g., "in-care-of" information.) Also underline in care of (c/o) with a name as part of the AIL.

    5. Street address, if not used as the mailing address.

      Note:

      Never underline or edit a P.O. Box as an AIL.

    6. Location other than a street address (e.g., bank, company name, university, or building name) not used as the mailing address. (See Figure 3.11.3-22.)

      Note:

      If a university and a building name are present, underline both as the AIL.

  4. Delete any condition or notation not found in (3) above.

    Figure 3.11.3-20

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    Figure 3.11.3-21

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    Figure 3.11.3-22

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Mailing Address
  1. Edit military addresses to include organization, Postal Service Center, mobile unit designation, or name of ship.

  2. Underline or edit the name control when there is no street address (for example, 4116 Grant Ave) or P.O. Box present in the caption. (See Figure 3.11.3-16 and Figure 3.11.3-23.)

    Exception:

    If Form 8822 is attached, follow the instructions at IRM 3.11.3.9.2.3.1. If the address still cannot be perfected, underline the name control.

    Exception:

    If correspondence is required, perfect address from an attached envelope. If unable to perfect from an attached envelope, research for the address.

  3. When a street address in the caption is incomplete (such as a number without a street name or a street name without a number), and a complete address that matches the caption is found on an attachment, perfect the street address. If the street address cannot be perfected, underline or edit the name control. (See Figure 3.11.3-23.)

  4. Search the attachments when a complete street address is present in the caption, but the city/state/ZIP is missing or incomplete. If the street address in the caption matches one found on an attachment, use the attachment to perfect the city/state/ZIP. (See Figure 3.11.3-24.)

  5. If you are unable to perfect a missing or partial city/state/ZIP Code, underline the name control.

    Note:

    If only the ZIP Code is missing, refer to IRM 3.11.3.9.2.5.

    Exception:

    If correspondence is required, perfect address from an attached envelope. If unable to perfect from an attached envelope, research for the address.

  6. Refer to the international return instructions in IRM 3.11.3.6.2.13 when the return has a foreign address on attached Schedule 6 (or listed in the address area on page 1, Form 1040).

    Exception:

    If both a domestic and foreign address are present, circle out the foreign address.

    Figure 3.11.3-23

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    Figure 3.11.3-24

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Change of Address (Form 8822)
  1. Edit the taxpayer's new address from Form 8822, Change of Address, if it is attached to the return. (See Figure 3.11.3-25.)

  2. If Form 8822 is attached to the return:

    If Then
    Box 1 is marked or no box is marked, Leave Form 8822 attached to the return.
    Box 2 is marked,
    1. Detach Form 8822.

    2. Route Form 8822 to Entity Control using Form 4227.

    3. Edit Action Trails on both the return and on Form 8822.

      Note:

      If Form 56 is attached, detach and route with Form 8822.

  3. Route loose Forms 8822 to Entity Control. Refer to the Attachment Guide in Exhibit 3.11.3-1 for more information.

    Figure 3.11.3-25

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Multiple Addresses
  1. Use the permanent address when more than one address is indicated and one is permanent and one is temporary. (See Figure 3.11.3-26.)

    Exception:

    When the taxpayer identifies him/herself as a victim of a natural disaster and requests that a refund be sent to a temporary address, edit Action Code "341" .

    Note:

    Refer temporary foreign addresses to your work leader for possible manual refund.

    Figure 3.11.3-26

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  2. Use the following chart to decide what action to take when multiple addresses are present and there is no indication of which address is permanent.

    If there are And Then
    Both a PO box and a street address present, An AIL is present, Circle the street address. (See Figure 3.11.3-27.)
    Both a PO box and a street address present and the city/state/ZIP codes are the same, An AIL is not present, Underline the street address. (See Figure 3.11.3-28.)
    Both a PO box and a street address present and the city/state/ZIP code are different, An AIL is not present, Circle the street address, including the city/state/ZIP code.
    Two street addresses and the city/state/ZIP Code are the same, An AIL is not present, Underline the first street address.
    Two street addresses and the city/state/ZIP Code are different, An AIL may or may not be present, Circle the first street address, including the city/state/ZIP Code.

    Figure 3.11.3-27

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    Figure 3.11.3-28

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  3. For addresses containing a rural route or route number with a box number, and a street address: (See Figure 3.11.3-29.)

    If a street number is Then
    Present, Underline the rural route or route number with a box number.

    Note:

    Never separate a rural route or route number with a box number.

    Not present, Underline the street address.

    Exception:

    Do not underline any part of the address when an AIL is already present.

    Figure 3.11.3-29

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  4. Underline any other address as the AIL if the street address is present with a notation of Private Mail Box or "PMB" . Do not separate the address from the PMB number. (See Figure 3.11.3-30)

    Exception:

    Do not underline a P.O. Box as the AIL. The P.O. Box will always take precedence over the PMB when determining the correct address.

    Figure 3.11.3-30

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City/State
  1. The city and the state must be present. If missing, search the return and other attachments.

    If the missing information is Then
    Found, Perfect the city/state line.

    Exception:

    Do not perfect city/state information if the street address is not present on the return.

    Not found, Underline or edit the name control.
  2. Do not abbreviate city names except those which have standard abbreviations. Examples include No. Hollywood or St. Louis. A list of the standard city abbreviations will be made available at local management's option.

  3. Use the standard abbreviations when editing the state. Refer to Exhibit 3.11.3-9 for a list of the standard state abbreviations.

  4. Route to Receipt & Control for transshipment to AUSPC when International Return conditions are present. See IRM 3.11.3.6.2.13.

    Exception:

    AUSPC only: Route to Receipt & Control for rebatching.

ZIP Code
  1. The ZIP code may be five or more digits. Take no action when there are more than five digits.

  2. Search attachments if the ZIP code is missing or incomplete and take one of the following actions:

    1. Perfect the ZIP code from the attachment(s) if a complete ZIP code is found for exactly the same address (including apartment number, if present). See Figure 3.11.3-31

    2. Perfect the ZIP code using the chart in Exhibit 3.11.3-9 when a complete ZIP code is not found.

    Figure 3.11.3-31

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APO/FPO/DPO Addresses
  1. Edit an APO, FPO, or DPO address so that "APO" , "FPO" , or "DPO" appears with the following (see Figure 3.11.3-32:

    • The appropriate two-letter state code, and

    • The corresponding unique five-digit ZIP code

    Figure 3.11.3-32

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  2. Circle a city name or a foreign city or country if present, and edit the appropriate state/ZIP code based on the table in paragraph (4) below.

  3. Edit the ZIP code from the table in paragraph (4) below that applies to the state code when the ZIP code is missing or incomplete.

  4. Refer to the following APO/FPO address conversion chart:

    Old Address New Address
    APO or FPO Miami, FL APO or FPO AA 34001
    APO or FPO New York, NY APO or FPO AE 09001
    APO or FPO San Francisco, CA APO or FPO AP 96201
    APO or FPO Seattle, WA APO or FPO AP 96201

Decedent Return

  1. Indications of a deceased taxpayer may include any of the following:

    1. Date of death is present

    2. "Deceased" written on the top of Form 1040, Form 1040A or Form 1040EZ

    3. "Deceased" , "Filing as surviving spouse" , or similar notation in the signature area

    4. Death certificate, Form 1310, or other documentation is attached

    5. "Estate of" is present

    6. "DEC"

  2. Instructions in this subsection of the IRM include the following:

    • General Decedent Return instructions

    • Decedent name line editing

    • Documentation requirements

    • Additional information line editing

    • Applicable Computer Condition Codes

    • Allowable short-period decedent return editing

Decedent Return, General Instructions

  1. Edit the caption information from a signed Form 1310. If a signed Form 1310 is not present, edit the information from the court certificate. (See Figure 3.11.3-33.) Edit the caption address before corresponding.

    Reminder:

    Do not edit caption information from an unsigned or improperly completed Form 1310.

    Figure 3.11.3-33

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  2. Check the "Estate of" box on Form 6001. Do not edit the AIL when corresponding for documentary evidence. If an AIL is present, circle out the AIL before corresponding for the documentary evidence.

  3. If corresponding for information other than documentary evidence, edit the AIL. If an AIL cannot be determined, check the "Estate of" box on Form 6001.

  4. If the signature is missing on a decedent return, correspond using Form 3531, check box 21. Edit "Estate of" in the caption area. Missing documentary evidence is not treated as an unsigned return. Do not use Form 3531 to mail back a signed decedent return missing documentary evidence.

  5. Decedent returns require a date of death. Correspond when the date of death cannot be determined through research. For Form 3531, check box 19, or Form 6001, check box C.

    Note:

    Do not research for a date of death when other correspondence conditions are present, instead include in the correspondence.

  6. If a return is filed for a single deceased taxpayer or two deceased taxpayers on a joint return and the return covers a tax period after the one in which the taxpayer(s) died, refer the return to your work leader.

  7. Work Leaders - follow the instructions below:

    1. Verify conversion to Form 1041 is necessary.

    2. Verify taxpayer is deceased. If a surviving spouse's signature is present on the return or if the taxpayer signed the return, do not transship to BMF SPC.

    3. For a numbered return, Insert a replacement page and edit the following information:
      • DLN in the upper-right margin.
      • AC 640
      • Action Trail, "Return transshipped to BMF SPC for conversion to Form 1041" .

    4. Pull the return from the batch and route to Receipt and Control, Media Transport Unit for transshipment to a BMF SPC.

  8. Take the following actions when a request for a prompt assessment or audit (e.g., "Section 6501(d)" noted) is present:

    1. Detach the request.

    2. Route the request to Examination using Form 4227.

    Note:

    Remember to edit Action Trails on the return and the request.

  9. If the FS is "1" , "4" , or "5" , the taxpayer is filing as a surviving spouse, and the decedent’s date of death is within the tax period or the subsequent tax period, take the following actions:

    If there is And Then
    One name in the name line, FS box 1 (Single) or 4 (Head of household) is marked,
    1. Edit the FS as 2 (Married filing jointly) and the spouse's name to the caption.

    2. Correspond, if the spouse's name cannot be found.
      - If using Form 3531, check box 20.
      - If using Form 6001, use fill-in 35, per Exhibit 3.11.3-17.

    One name in the name line, FS box 5 (Qualifying widow(er) is marked, Correspond, if the spouse's name cannot be found.
    - If using Form 3531, check box 20.
    - If using Form 6001, use fill-in 35, per Exhibit 3.11.3-17.
    Two names in the name line,   Edit the FS as "2" (Married filing jointly). (See Figure 3.11.3-34.)

    Figure 3.11.3-34

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  10. If the signature of the deceased taxpayer is present on the signature line of the return, the signature date must precede the date of death of the taxpayer. If it does not, correspond for a valid signature. Correspond for documentary evidence, if necessary.

Name Line on a Decedent Return

  1. Use these name line instructions in addition to the regular caption editing procedures in IRM 3.11.3.9.2.

  2. If there is a notation of "deceased" , "decedent" , "Decd" , "Dec" , or "Dec'd" in or above the caption area, arrow or edit the notation to indicate the deceased taxpayer. (See Figure 3.11.3-35.)

    If And Then
    Other than joint return,   Arrow or edit the notation to after the taxpayer's last name (behind any suffix)*
    Joint Return, Both taxpayers have same last name, Arrow or edit the notation to after the deceased taxpayer's first name (and middle initial, if present). (See Figure 3.11.3-35.)

    Note:

    No special editing is needed if a suffix is present.

    Joint Return, Taxpayers have different last names, Arrow or edit the notation to after the deceased taxpayer's last name (behind any suffix.)*

    Note:

    * If the deceased taxpayer's last name is hyphenated, edit DECD after the second surname.

    Figure 3.11.3-35

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  3. If there is not a notation of "deceased" , "decedent" , "dec" , "Decd" , or "Dec'd" in or above the caption area, edit "DECD" as follows:

    If And Then
    Other than joint return,   Edit "DECD" after the taxpayer's last name (behind any suffix) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Joint Return, Both taxpayers have same last name, Edit "DECD" after the deceased taxpayer's first name (and middle initial, if present).
    Joint Return, Taxpayers have different last names, Edit "DECD" after the deceased taxpayer's last name (behind any suffix.) (See Figure 3.11.3-37.)*

    Note:

    * If the deceased taxpayer's last name is hyphenated, edit DECD after the second surname.

  4. On a joint return, when one taxpayer died prior to the tax period of the return, delete the following from the caption:

    1. The deceased taxpayer's name and TIN

    2. "DECD" if it is included in the caption

  5. If deleting the primary taxpayer from the caption, edit the secondary taxpayer as the new primary. (See Figure 3.11.3-38.) See IRM 3.11.3.12.2.2 (1) for possible filing status editing.

    Figure 3.11.3-36

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    Figure 3.11.3-37

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    Figure 3.11.3-38

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Documentary Evidence

  1. Accept any court papers naming the claimant as a court-appointed or court-certified personal representative for the estate of the deceased taxpayer. A will validated through the court is acceptable documentary evidence. Acceptable documentary evidence also includes a properly completed Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. See IRM 3.11.3.10.3(7).

    Note:

    The signature name and the documentary evidence name must be the same person. Otherwise, correspond.

    Reminder:

    A will that has not been validated through a court is not acceptable as proof of appointment. A power of attorney (POA) is not valid after the death of the taxpayer.

  2. Do not require documentary evidence for the authority to sign the return on a:

    1. Balance due return

    2. Zero/even balance return

    3. Joint (FS "2" ) return signed by the surviving spouse

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    5. Credit elect return when the taxpayer's date of death is after the tax year (on a joint return this applies to either taxpayer).

    6. Return signed by a representative of a bank or fiduciary institution.

  3. Unless one of the exceptions in (2) above applies, require documentary evidence for all decedent returns that meet any of the following conditions:

    1. Uncomputed return

    2. Refund of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. Credit elect of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

    If the refund is barred due to the expiration of the statute of limitations, no documentary evidence is required.

    Figure 3.11.3-39

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  4. Require documentary evidence on a joint return only in the following two situations, unless one of the conditions in (2) above applies:

    If Then
    Both taxpayers are deceased, Require documentary evidence for the person signing the return for at least one of the taxpayers.
    See IRM 3.11.3.10.3(2) for exceptions.

    Note:

    The signature name and the documentary evidence name must be the same person. Otherwise, correspond

    .
    Only one taxpayer died and the return has a single signature of someone other than the surviving spouse, Documentary evidence is required to support the authority to sign for both the decedent and the surviving spouse, (i.e., fiduciary relationship or POA per IRM 3.11.3.11 and IRM 3.11.3.11.3).
  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Figure 3.11.3-40

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  6. Correspond when the refund payee is a claimant other than a legal representative, and a completed Form 1310 is not present. Correspond using Form 6001, paragraph D, or Form 3531, box 23.

  7. Accept Form 1310 as documentary evidence when all the following are present:

    1. An original signature. Correspond if missing or invalid. See IRM 3.11.3.14.5 for signature requirements.

    2. Part II, questions 2a and 2b must be answered "No" . Correspond for a court certificate if either is answered "Yes" or is blank. (See Figure 3.11.3-41.)

    3. Part II, question 3 must be answered "Yes" unless a court certificate is attached. (See Figure 3.11.3-42.) Correspond when the question is answered "No" or is blank and a court certificate is not attached.

    Note:

    Correspond for a court certificate even when there is an indication a court certification was previously submitted.

    Figure 3.11.3-41

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    Figure 3.11.3-42

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Additional Information Line on a Decedent Return

  1. An AIL is required on all refund and uncomputed returns. On all other returns, edit the AIL if available. (See Figure 3.11.3-43.) Correspond when an AIL is required and you are not able to determine the AIL from the signature line or attachments. For Form 3531, use box 22 and for Form 6001, fill in #3, per IRM Exhibit 3.11.3-17.

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. Edit the name of the surviving spouse as the AIL on a FS 2 return. Include the representative's name and title on the AIL when a court-appointed or personal representative's signature is on the return.

    Exception:

    Do not include a title on the AIL when the surviving spouse is also the court-appointed personal representative.

  3. Edit the title of the representative from these sources in the following priority:

    1. Court certificate

    2. Form 1310

    3. Signature area of the return

    Note:

    Edit only the first representative's name and title on the AIL when more than one is present.

  4. Use the following abbreviations for these titles (See Figure 3.11.3-43):

    • Administrator - ADM

    • Commissioner - COMM

    • Conservator - CONS

    • Custodian - CUST

    • Executor(Executrix) - EXEC

    • Guardian - GDN

    • Personal Representative - PER REP

    • Trustee - TR

    Note:

    Edit only the first representative's name and title on the AIL when more than one is present.

  5. Delete personal relationship suffixes (e.g., "surviving spouse" , "mother" , "father" , "daughter" , "son" , etc.) from the AIL.

    Figure 3.11.3-43

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Computer Condition Codes for Decedent Returns

  1. Edit one of the following CCCs on all returns where the taxpayer(s) died during the tax period of the return:

    1. Edit CCC "F" if a single taxpayer, or only the primary taxpayer on a joint return, is deceased. (See Figure 3.11.3-44)

    2. Edit CCC "9" if only the secondary taxpayer died during the tax period. (See Figure 3.11.3-44)

    3. Edit CCC "A" if both taxpayers died during the tax period. (See Figure 3.11.3-44)

    Note:

    Do not edit CCC "F" , "9" or "A" when the taxpayer died after the end of the tax period. (See Figure 3.11.3-45)

  2. Edit one of the following CCCs on a refund or uncomputed return:

    1. Edit CCC "W" if the payee is the surviving spouse alone, or a payee other than a legal representative or place of business. (See Figure 3.11.3-45)

    2. Edit CCC "L" if the payee is a legal representative (i.e., court-appointed), place of business, or a surviving spouse and a legal representative or place of business. (See Figure 3.11.3-45)

      Note:

      Do not edit CCC "L" or CCC "W" if corresponding.

    Figure 3.11.3-44

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    Figure 3.11.3-45

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Short Period Decedent Return

  1. If a single taxpayer or two taxpayers on a joint return died after the currently processed calendar year (2018), a short period return may be filed. In addition to regular editing, edit the following (see Figure 3.11.3-46):

    1. The date of death in YYMM format as the tax period.

      Note:

      Use the most recent date of death on a joint return when both taxpayers are deceased.

    2. CCC "Y" and an Action Trail

    3. CCC "A" for a joint return or CCC "F" for a single taxpayer

    4. Received date or today's date if no date stamp is present

    5. CCC "R" if the return is received more than 3 months and 15 days from the end of the short period.

      Exception:

      Do not edit CCC "R" if CCC "Z" criteria apply.

  2. If on a joint return only one taxpayer died after the currently processed calendar year, a return for the surviving spouse must be filed for the entire year. If a short period return was filed instead, take one of the following actions:

    1. If the return is unnumbered, correspond, informing the taxpayer that a return for the entire year must be filed.

    2. If the return is numbered, edit Action Code "480" and do not correspond.

  3. Only Form 1040 may be filed as a short-period return. Convert Form 1040A or Form 1040EZ to Form 1040. See IRM 3.11.3.70 for instructions on converting returns.

    Figure 3.11.3-46

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Fiduciary Relationships

  1. Fiduciary returns are those which are signed for the taxpayer by a representative, who is often court-appointed.

  2. Edit the fiduciary institution's name or the taxpayer's representative's name, when no institution name is present, as the Additional Information Line (AIL) in the caption. (See IRM 3.11.3.9.2.2.2.)

  3. Use the abbreviations in the following chart as suffixes to the representative's name or fiduciary’s relationship.

    Fiduciary Relationships/Taxpayer Representatives Abbreviation
    Administrator ADM
    Commissioner COMM
    Conservator CONS
    Custodian CUST
    Executor/Executrix EXEC
    Guardian GDN
    Personal Representative PER REP
    Trustee TR

    Note:

    Do not add a Power of Attorney (POA) name as an Additional Information Line.

  4. Delete the word "Incompetent" from the caption when it is present.

Documentary Evidence Requirements

  1. Documentary evidence is never required for any of the following relationships:

    • The parent or spouse of an incompetent taxpayer

    • A parent signing for their minor child

    • An attorney or Certified Public Accountant (CPA)

    • A representative of a bank or other fiduciary institution, to include credit unions, pension funds, etc.

    • A Military spouse out of the country on combat duty or located in a qualified hazardous duty area. See IRM 3.11.3.6.1.1 for additional information regarding Combat Zone returns.

    Note:

    See IRM 3.11.3.10.3 for Documentary Evidence requirements for decedent returns.

  2. Documentary evidence is required only if the taxpayer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. The parent for a child that is not a minor.

    2. Any of the representatives listed in the table at IRM 3.11.3.11.

  3. Documentary evidence is always required, regardless of the dollar amount, for all other relationships. This includes, but is not limited to, the following:

    • Son

    • Daughter

    • Uncle

    • Aunt

    • Cousin

    • Nephew

    • Niece

    • POA

    • Attorney-In-Fact

  4. Correspond when documentary evidence is required but not attached. If using Form 3531, check box 1, or Form 6001, paragraph i/r.

    Note:

    Do not edit AIL or underline, circle out if already present in the caption, when corresponding for documentary evidence.

Minor Child

  1. A minor child is defined by any of the following

    • "Minor" is notated anywhere on the return

    • Any indication the child is under age 18

  2. Edit "MINOR" as a suffix to the child's name in the caption if the return is for a minor child. See Figure 3.11.3-47.

  3. Edit the parent, other fiduciary representative or guardian's name as an additional information line in the caption if that person signs for the child (See Figure 3.11.3-47 and IRM 3.11.3.9.2.2.2.) Use the following priority to determine the name or relationship of the person(s) signing the return:

    1. Use information from the signature area.

    2. Use information from Form 8615.

    3. Correspond for documentary evidence if a relationship cannot be determined.

  4. Correspond for missing required documentary evidence. Documentary evidence requirements are:

    1. A minor child's return signed by their parent never requires documentary evidence.

    2. A minor child's return signed by their guardian or other fiduciary representative (as shown in IRM 3.11.3.11) requires documentary evidence ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. All other relationships always require documentary evidence.

    Figure 3.11.3-47

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Power of Attorney (POA)

  1. If a POA relationship is indicated, Form 2848, Power of Attorney and Declaration of Representative, or a general or durable Power of Attorney must be attached. Correspond when missing, unless there is a notation of either of the following:

    • "POA on file" .

    • A Centralized Authorization File (CAF) number is provided on the return or an attachment. See paragraph (2) below.

    Note:

    A Form 2848 authorizes the holder to represent the taxpayer before the Service. The power to sign a tax return is not a power generally authorized by the form; the power must be specified. A Form 8821, Tax Information Authorization, only allows the holder to receive the taxpayer's tax information.

  2. Research the POA when either of the notations in (1) above are present. Correspond, when research does not provide a valid (current) POA. If using Form 3531, check box 1, or Form 6001, paragraph i/r.

  3. Never edit a POA name as an additional information line in the caption, unless otherwise instructed.

  4. See IRM 3.11.3.9.2.2.2 for further information on editing additional information lines.

Filing Status (FS)

  1. The filing status (FS) is used to determine the taxpayer's standard deduction amount, eligibility for the earned income tax credit, and to compute his/her tax.

  2. The instructions in this manual subsection are for determining and editing the correct FS.

Filing Status, General Instructions

  1. TY18 and later, edit the FS by either checking the appropriate box or by editing the FS Code between the Filing status and the Single check box.

  2. TY17 and prior, edit the FS by either checking the appropriate box or by editing the FS Code to the left of the Filing Status 3 box.

  3. The meaning of the Filing Status Codes are:

    • FS "1" - single taxpayer

    • FS "2" - married taxpayers filing joint return

    • FS "3" - married taxpayer filing a separate return (spouse dependent / exemption is not claimed)

    • FS "4" - head of household

    • FS "5" - qualifying widow(er)

    • FS "6" - married taxpayer filing a separate return (spouse exemption is claimed)

    • FS "7" - head of household (dependent is not claimed)

      Note:

      Name will be present to the right of qualifying widow(er) checkbox on TY18 and later returns and on the line by FS 4 on TY17 and prior returns.

Determining the Filing Status

  1. On an uncomputed return, when all FS boxes are blank or multiple boxes are marked:

    1. Edit FS "2" (Married filing jointly), when there are two names in the caption and two signatures are present. Circle all boxes except FS "2" (Married filing jointly), when multiple boxes are marked.

    2. Take no action for all other cases.

    Note:

    See IRM 3.11.3.6.2.5 for information on identifying uncomputed returns. See IRM 3.11.3.13.2 for further information on dependent editing.

  2. On a computed return, when the taxpayer does not mark a box:

    If there And Then
    Is one name in the caption and one signature TY18 and later: a spouse is listed as a dependent,
    TY17 and prior: a spouse's exemption is claimed line 6b or 6c,
    Edit FS "6" and
    for TY18 and later, do not code as a dependent or,
    for TY17 and prior, delete the spouse's exemption from positions 2 - 7.
    Is one name in the caption and one signature TY18 and later, a spouse’s name is entered on line by Qualifying Widow(er) and/or an S-TIN is present in the caption area.
    TY17 and prior, an S-TIN or spouse's name is entered on line 3 or an S-TIN is present in the caption area.
    Check FS 3 box (Married filing separate) unless FS 6 criteria (above) applies.
    Is one name in the caption and one signature Neither of the above apply, Check FS 1 box (Single).
    Are two names in the caption and two signatures,   Check FS 2 box (Married filing jointly).
    Is any other condition,   Take no action.
  3. On a computed return when more than one FS box is marked, circle all boxes but the largest number unless both FS 1 and 4 boxes are marked. (See Figure 3.11.3-48.)

    If FS boxes 1 and 4 are both marked and Then
    TY18 and later:
    • a dependent with a TIN or an indication of a dependent who was born during the tax period and died during the same or next consecutive tax period is claimed on the Dependent Line or edited in positions 1,3,4, or 5.

    TY17 and prior:
    • A dependent with a TIN or an indication of a dependent who was born during the tax period and died during the same or next consecutive tax period is claimed in exemption positions 2, 4, 5, or 6. (See IRM 3.11.3.13.)

    Circle FS 1 box. (See Figure 3.11.3-48)
    TY18 and later:
    • A name or "see attached" is noted on line next to Qualifying widow(er) or Schedule EIC, with a qualifying child is attached,

    • AND no dependents are edited in positions 1, 3, 4, or 5.

    TY17 and prior:
    • A name or "see attached" is noted on line 4 or Schedule EIC with qualifying child is attached,

    • AND no exemptions are entered or edited in exemption positions 2, 4, 5, or 6.

    (See IRM 3.11.3.47.2.)
    Circle FS 1 and 4 boxes and edit FS "7" .
    None of the conditions listed above are present, Circle FS 4 box.

    Note:

    Refer to the FS "4" instructions (IRM 3.11.3.12.2.4) if a spouse is claimed on the Dependent line (TY18 and later) or on line 6b or 6c (TY17 and prior).

    Figure 3.11.3-48

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FS 1 (Single) Box Marked
  1. When the taxpayer marks FS 1 box only:

    If there is one name in the caption and one signature and Then

    TY18 and later: a spouse is claimed as a Dependent or,
    TY17 and prior: a spouse's exemption is claimed on line 6b or 6c,
    1. For TY18 and later, do not code the spouse as a Dependent and edit an X to the left of the spouse's name on the Dependent line.

    2. For TY17 and prior, circle FS 1 box and edit FS 6. Delete the spouse's exemption from positions 2-7 and edit an "X" to the left of the spouse's name on line 6c, if present.

    A spouse's date of death is within the tax period of the return,
    1. Circle FS 1 box and check FS 2 box.

    2. Edit the spouse's name to the caption or correspond if missing.
      - If using Form 3531, check box "20" .
      - If using Form 6001, use fill-in "35" , per Exhibit 3.11.3-17.

    Note: Also see the decedent return editing information in IRM 3.11.3.10.
    None of the conditions above apply, Take no action.
FS 2 (Married Filing Jointly) Box Marked
  1. When the taxpayer marks FS 2 box only:

    If there And Then
    Is only one signature and
    • For TY18 and later, a spouse’s name is listed as a Dependent or

    • For TY17 and prior, a spouse's exemption is claimed on line 6b or 6c,

    There is no S-TIN present, Correspond for the spouse's missing signature and TIN. Use Form 3531 and check boxes 1 and 2.
    Are two signatures and
    • For TY18 and later, a spouse is claimed the Dependent line

    • For TY17 and prior, a spouse’s exemption is claimed on line 6c

    There is no S-TIN present,
    1. Edit spouse's name to the caption.

    2. Edit an "X" to the left of spouse's name on the Dependent line or on line 6c.

    3. Delete the spouse's exemption when claimed on the Dependent line or in exemption positions 2 through 7. Do not code the spouse as a Dependent or an exemption.

    Are two names in the caption and the spouse's date of death is 2016 or 2017,

    Note:

    For PY returns - Spouse's date of death is within 2 years prior to the tax period of the return.

    For TY18 and later, a Dependent is present or
    For TY17 and prior, an exemption is present in positions 2, 5, or 6,
    1. Circle FS 2 box and check FS 5 box.

    2. Circle the deceased spouse's name and TIN in the caption. (See Figure 3.11.3-49)

    Are no conditions above that apply,   Take no action.

    Figure 3.11.3-49

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FS 3 (Married Filing Separately) Box Marked
  1. When the taxpayer marks FS 3 box only and spouse's exemption is claimed on the Dependent line (TY18 and later) or on line 6b or 6c (TY17 and prior):

    If there And Then
    Is only one name in the caption, The spouse has no income, TY18 and later: circle FS 3 box and edit FS "6"
    • Edit an X to the left of the spouse's name if entered on Dependent line

    • Do not code the spouse as a dependent when listed on the Dependent line.

    TY17 and prior: circle FS 3 box and edit FS "6"
    • Edit an X to the left of the spouse's name if entered on line 6c

    • Delete and do not code the spouse’s exemption when claimed in exemption positions 2 through 7.

    (See Figure 3.11.3-50)
    Is only one name in the caption, The spouse has income, Correspond for the correct FS. If using Form 3531, use fill-in "54" , per Exhibit 3.11.3-17. If using Form 6001, check box F.
    Are two names in the caption, two signatures,   TY18 and later: circle FS 3 box and check FS "2" box.
    • Edit an X to the left of the spouse's name if entered on Dependent line.

    • Do not code the spouse as a dependent when listed on the Dependent line.

    TY17 and prior: circle FS 3 box and check FS "2" box.
    • Edit an X to the left of the spouse's name if entered on line 6c.

    • Delete and do not code the spouse’s exemption when claimed in exemption positions 2 through 7.

    Figure 3.11.3-50

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FS 4 (Head of Household) Box Marked
  1. When the taxpayer marks FS 4 box only:

    If Then
    TY18 and later:
    • A spouse is claimed on Dependent line

    • and no other dependents are listed or claimed,

    TY17 and prior:
    • A spouse's exemption is claimed on line 6b or 6c

    • and no other dependents are listed or claimed on line 6c,

    TY18 and later:
    • Circle FS 4 box and edit FS 6

    • Edit an X to the left of the spouse's name if entered on Dependent and delete the spouse's name if in the caption.

    • Do not code spouse as a dependent.

    TY17 and prior:
    • Circle FS 4 box and edit FS 6

    • Edit an X to the left of the spouse's name if entered on line 6c and delete the spouse's name if in the caption.

    • Delete the spouse's exemption when claimed in exemption positions 2 through 7.

    (See Figure 3.11.3-51.)
    TY18 and later:
    • A spouse is claimed on Dependent line

    • andother dependents are listed or claimed

    TY17 and prior:
    • A spouse's exemption is claimed on line 6b or 6c

    • andother dependents are listed or claimed on line 6c,

    TY18 and later:
    • Edit an X to the left of the spouse's name if entered on the Dependent line.

    • Do not code the spouse as a dependent.

    TY17 and prior:
    • Edit an X to the left of the spouse's name if entered on line 6c.

    • Delete the spouse's exemption when claimed in exemption positions 2 through 7

    TY18 and later:
    • Position 1, 3, 4 or 5 does not contain a dependent with a TIN or a dependent who was born during the tax period and died during the same or next consecutive tax period, and

    • No name or "see attached" noted next to Qualifying Widow(er) and

    • No Schedule EIC with a qualifying child attached,

    TY17 and prior:
    • Position 2, 4, 5 or 6 does not contain a dependent with a TIN or a dependent who was born during the tax period and died during the same or next consecutive tax period, and

    • No name or "see attached" noted on line 4 and

    • No Schedule EIC with a qualifying child attached,

    Circle FS 4 box and check FS 1 box. (See Figure 3.11.3-52)
    TY18 and later:
    • A name or "see attached" is notated next to Qualifying Widow(er) or Schedule EIC with qualifying child is attached and

    • No dependents are entered/edited in positions 1, 3, 4, or 5

    TY17 and prior:
    • A name or "see attached" is notated on line 4 or Schedule EIC with qualifying child is attached and

    • No exemptions are entered/edited in positions 2, 4, 5, or 6

    Circle FS 4 box and edit FS "7." (See Figure 3.11.3-53)
    A spouse's date of death is within the tax period of the return or the subsequent tax period,
    1. Circle FS 4 box and check FS 2 box.

    2. Edit the spouse's name to the caption or correspond if missing.
      - If using Form 3531, check box 20.
      - If using Form 6001, use fill-in "35" , per Exhibit 3.11.3-17.

    Note:

    See the decedent return editing information in IRM 3.11.3.10.

    Figure 3.11.3-51

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    Figure 3.11.3-52

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    Figure 3.11.3-53

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FS 5 (Qualifying Widow(er) Box Marked
  1. Refer to the decedent editing instructions in IRM 3.11.3.10 if the spouse died during the tax period of the return.

  2. When the taxpayer marks FS 5 box only:

    If the And Then
    Spouse's date of death is not 2016 or 2017,

    Note:

    For PY returns - Spouse's date of death is not within 2 years prior to the tax period of the return.

    TY18 and later:
    • There is at least one dependent coded in position 1,3, 4, or 5 with a TIN

    • or a dependent who was born during the tax period and died during the same or next consecutive tax period

    • or a qualifying child on Schedule EIC, or a name or see attached noted next to the Qualifying Widow(er)

    TY17 and prior:
    • There is at least one exemption in positions 2, 4, 5, or 6 with a TIN

    • or a dependent who was born during the tax period and died during the same or next consecutive tax period

    • or a qualifying child on Schedule EIC, or a name or see attached noted on line 4

    Circle FS 5 and check FS 4 box. (See Figure 3.11.3-54)
    Spouse's date of death is not 2016 or 2017,

    Note:

    For PY returns - Spouse's date of death is not within 2 years prior to the tax period of the return.

    TY18 and later:
    • There are no dependents coded in positions 1, 3, 4, or 5, with a TIN

    • nor a dependent who was born during the tax period and died during the same or next consecutive tax period,

    • nor a qualifying child on Schedule EIC or a name or see attached noted next to Qualifying Widow(er)

    TY17 and prior:
    • There are no exemptions in positions 2, 4, 5, or 6 with a TIN nor a dependent who was born during the tax period and died during the same or next consecutive tax period,

    • nor a qualifying child on Schedule EIC or a name or see attached noted on line 4.

    .
    Circle FS 5 and check FS 1 box.
    Spouse's date of death is not present,   Take no action.

    Figure 3.11.3-54

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Dependents - Exemptions

  1. There are no exemptions on TY18 and later returns only dependents.

  2. There are two types of exemptions on prior year returns:

    • Personal exemptions

    • Dependency exemptions

  3. A taxpayer is allowed one personal exemption for him/herself (two on a joint return), as long as he/she cannot be claimed as a dependent by another taxpayer.

  4. Taxpayers are also allowed one dependency exemption for each person they can claim as a dependent.

  5. The exemption instructions in this subsection of the manual are for:

    • Taxpayer claimed as a dependent by another person

    • General instructions about exemption coding

    • Coding each of the exemption positions

Dependency Status Indicator (DSI) Prior Year Only

  1. For TY18 and later, the DSI is not edited on returns. Follow instructions in paragraphs (2) through (4) below for TY17 and prior return editing.

  2. Edit the DSI on Form 1040 or Form 1040A in the blank area, directly above line 6c, column (4) or to the right of the text.

  3. Edit a DSI Code of "1" when the taxpayer indicates on the return or attachment that he/she is claimed on another person's return.

    Reminder:

    When applicable, the DSI is still required if RPC "L" has been edited on TY17 and prior returns.

  4. Take one of the following actions for editing the DSI (See Figure 3.11.3-55):

    If And Then
    The "Yourself" box on line 6a is not marked, FS is 1, 3, 4, 5 or 7, Exemption position 1 is "0" , dash or blank and the "total number of exemptions claimed" box on line 6d is "0" , dash or blank, Edit DSI "1" .
    The "Yourself" box on line 6a is not marked, FS is 2 or 6, Exemption position 1 is "1," Edit DSI "1" .
    The "Yourself" box on line 6a is marked, FS is 2 or 6, Exemption position 1 is "1" , and the Spouse box on line 6b is not marked, Edit DSI "1" .

    Reminder:

    When applicable, the DSI is still required if RPC "L" has been edited.

    Figure 3.11.3-55

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Dependent Coding - TY18 and Later

  1. Dependents are edited on Form 1040 in the margin directly to the right of the dependents area of the return.

  2. There are six dependent positions. The six positions are used to identify different relationships between the dependent and the taxpayer.

    • Dependent position 1 - Child relationships

    • Dependent position 2 - Will always be edited "0" , (child who did not live with you is not valid for TY18)

    • Dependent position 3 - Parent relationships

    • Dependent position 4 - Qualifying child relationships

    • Dependent position 5 - Other relationships

    • Dependent position 6 - Child relationships overflow

    See Figure 3.11.3-59.

  3. Dependents will be coded based on the relationship listed in column (3).

  4. Edit leading zeros. Edit a 0 (zero) in any prior position for which a dependent has not been coded when editing dependent positions 3 through 6. Do not edit trailing zeros. See Figure 3.11.3-57.

  5. Edit dependents to position 5 when the relationship of the dependent is not listed.

  6. The number of dependents edited should equal the number of dependents listed by the taxpayer on the Form 1040 or attachments. See Figure 3.11.3-58.

    Figure 3.11.3-56

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    Figure 3.11.3-57

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    Figure 3.11.3-58

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Determining Dependent Relationship
  1. The child relationship (position 1) includes notations of the following:

    • "Child" , "son" , or "daughter"

    • "Adopted child" , "adopted son" , or "adopted daughter"

    • "Grandchild" , "grandson" , or "granddaughter"

    • "Great-grandchild" , "great-great-grandchild" , "great-grandson" , "great-great-grandson" , "great-granddaughter" , "great-great-granddaughter"

    • "Stepchild" , "stepson" , or "stepdaughter"

  2. Position 2 will ALWAYS be edited as "0" when it is necessary to edit subsequent dependent positions.

  3. The parent relationship (position 3) includes notations of the following:

    • "Parent" , "father" , or "mother"

    • "Stepparent" , "stepfather" , or "stepmother"

    • "Parent-in-law" , "father-in-law" , or "mother-in-law"

    • "Grandparent" , "grandfather" , or "grandmother"

    • "Great-grandparent" , "great-great-grandparent" , "great-grandfather" , "great-great-grandfather" , "great-grandmother" , "great-great-grandmother"

  4. The "qualifying child" relationship (position 4) includes notations of the following:

    • "Foster child" , "foster son" , or "foster daughter"

    • "Ward"

    • Any child placed by an authorized agency

    • "Brother" , "sister" , "brother-in-law" , "sister-in-law" , "step-brother" , "step-sister" , "half brother" or "half sister"

    • "Nephew" or "niece"

  5. Include in "other" relationships (position 5) any dependent not identified in (1), (3) or (4) above. "Other" relationships include the following:

    • "Uncle" or "aunt"

    • "Son-in-law" or "daughter-in-law"

    • "Friend" , "boyfriend" , or "girlfriend"

    • All dependents who did not live in the US except for parent relationships

    • "Cousin"

    • "Godchild" , "godson" , "goddaughter"

    • "Boyfriend's/girlfriend's child" , "boyfriend's/girlfriend's son" , "boyfriend's/girlfriend's daughter" , "mother of child" , "father of child"

    Note:

    This list is not all inclusive.

  6. If more than nine dependents are identified for position 1, edit the excess in position 6.

Exemption Coding - TY17 and Prior

  1. Exemptions are entered by the taxpayer on TY17 and prior Form 1040 or Form 1040A on the four lines and one box located directly to the right of line 6c in the exemption area of the return.

  2. There are seven exemption positions. The seven positions are used to identify different relationships between the exemption and the taxpayer. (See Figure 3.11.3-59)

  3. Exemption positions 1, 2, and 3 are located on the first, second, and third lines.

    • Exemption position 1 - first line-"Yourself and Spouse"

    • Exemption position 2 - second line-"Children who lived with you"

    • Exemption position 3 - third line-"Children who did not live with you due to divorce or separation"

  4. Additional exemptions-either entered by the taxpayer on the fourth line or listed on line 6c- must be edited when the taxpayer is claiming exemptions other than for him/herself, spouse, or his/her children. These exemptions are edited in the right margin. Begin editing to the right of the second line (the line labeled "lived with you" ). The additional positions are as follows:

    • Exemption position 4 - Parents, Grandparents

    • Exemption position 5 - Qualifying children

    • Exemption position 6 - Other dependents

    • Exemption position 7 - Overflow from position 2

    Figure 3.11.3-59

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  5. "X" the taxpayer's entry and edit all exemptions to the correct position when the taxpayer enters totals on the second or third line of the exemption area.

  6. Do not code an exemption when the taxpayer states the exemption is not being claimed. Edit an "X" to the left of the unclaimed dependent’s name on line 6c. (See Figure 3.11.3-60)

    Figure 3.11.3-60

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  7. Edit any exemption claimed by the taxpayer as if it were claimed on the fourth line when the second, third, and fourth lines are blank.

  8. If a fractional exemption is found, "X" it.

  9. Edit to position 6 any dependent, other than a parent, when there is an indication on the return or attachments that the dependent did not live in the United States (see Figure 3.11.3-61). Indications that the dependent did not live in the U.S. include, but are not limited to, the following notations:

    • "CN" or "Canada"

    • "F" for foreign dependent

    • "MX" or "Mexico"

    Figure 3.11.3-61

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  10. Take the following actions for line 6c:

    If Then
    The taxpayer indicates a relationship of:
    • "Self"

    • "Me"

    • "Spouse"

    • "Husband"

    • "Wife"

    • "Common law" spouse

    1. Delete the exemption from the exemption position.

    2. Edit an "X" to the left of the name on line 6c.

    3. Delete the spouse's exemption when claimed in exemption position 2 through 7. Do not code the spouse as an exemption.

    The taxpayer entered any dependents in an incorrect position, Edit the exemptions to the correct positions.

    Exception:

    Do not move a child from exemption position 3 to position 2.

    Note:

    It is not necessary to "X" any entry on line 4 because it is not transcribed.

    The taxpayer states that a listed dependent is not being claimed as an exemption,
    1. Do not code as an exemption.

    2. Edit an "X" to the left of the name on line 6c.

    The number of names listed by the taxpayer on the return or an attached statement is not equal to the number of exemptions claimed on the exemption lines, Edit exemption positions based on dependent information on line 6c. (See Figure 3.11.3-62)

    Note:

    Do not use Schedule EIC to determine exemption positions.

    Figure 3.11.3-62

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Exemption Relationships
  1. Much of exemption coding is based upon the relationship of the dependent to the taxpayer(s).

  2. The relationships of parent and grandparent are not changed by the suffix "in-law" or the prefix "step" .

  3. While the relationship of child is not changed by the addition of the prefix "step" it is changed by addition of the suffix "in-law" .

    1. A stepchild is treated as a child and is entered in either position 2 or position 3, depending on if the taxpayer indicates the child lived with them or did not live with them.

    2. Exemptions in Position 5 are labeled "Qualifying Children" because they may "qualify" the taxpayer for EIC or the Child Tax Credit.

    3. A son-in-law or daughter-in-law is treated as an "other" relationship and is edited in position 6.

Blank Relationship
  1. Edit exemptions to position 6 when the relationship of the dependent is not listed on line 6c. (See Figure 3.11.3-66.)

    Exception:

    Edit an "X" to the left of the dependents name and do not code the exemption if the relationship on line 6c is blank and there is a statement on line 6c that the exemption is not being claimed.

    Note:

    Do not move a dependent from exemption position 2 or 3 when the relationship is blank unless the dependent did not live in the United States.

Determining the Exemption's Relationship
  1. The child relationship (position 2 or 3) includes notations of the following:

    • "Child" , "son" , or "daughter"

    • "Adopted child" , "adopted son" , or "adopted daughter"

    • "Grandchild" , "grandson" , or "granddaughter"

    • "Great-grandchild" , "great-great-grandchild" , "great-grandson" , "great-great-grandson" , "great-granddaughter" , "great-great-granddaughter"

    • "Stepchild" , "stepson" , or "stepdaughter"

  2. The parent relationship (position 4) includes notations of the following:

    • "Parent" , "father" , or "mother"

    • "Stepparent" , "stepfather" , or "stepmother"

    • "Parent-in-law" , "father-in-law" , or "mother-in-law"

    • "Grandparent" , "grandfather" , or "grandmother"

    • "Great-grandparent" , "great-great-grandparent" , "great-grandfather" , "great-great-grandfather" , "great-grandmother" , "great-great-grandmother"

  3. The "qualifying child" relationship (position 5) includes notations of the following:

    • "Foster child" , "foster son" , or "foster daughter"

    • "Ward"

    • Any child placed by an authorized agency

    • "Brother" , "sister" , "brother-in-law" , "sister-in-law" , "step-brother" , "step-sister" , "half brother" or "half sister"

    • "Nephew" or "niece"

  4. Include in "other" relationships (position 6) any dependent not identified in (1), (2) or (3) above. "Other" relationships include the following:

    • "Uncle" or "aunt"

    • "Son-in-law" or "daughter-in-law"

    • "Friend" , "boyfriend" , or "girlfriend"

    • All dependents who did not live in the US except for parent relationships

    • "Cousin"

    • "Godchild" , "godson" , "goddaughter"

    • "Boyfriend's/girlfriend's child" , "boyfriend's/girlfriend's son" , "boyfriend's/girlfriend's daughter" , "mother of child" , "father of child"

    Note:

    This list is not all inclusive.

Exemption Positions
  1. Edit a "0" (zero) in any prior position for which an exemption has not been coded when editing exemption positions 5 through 7. Do not edit trailing zeros. (See Figure 3.11.3-63)

    Exception:

    Do not edit a zero in position 2 or 3.

    Figure 3.11.3-63

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  2. If the number of exemptions belonging in positions 3 through 7 exceeds nine, edit "9" in the position.

  3. Look for misplaced exemptions. Move dependent exemptions to the correct position.

    Exception:

    Do not move a child from exemption position 3 to position 2.

Exemption Position 1 -"Yourself and Spouse" (Not Transcribed)
  1. Position 1 is computer generated based on the taxpayer's filing status. No editing is required.

  2. See IRM 3.11.3.12.2 for instructions about the filing status and the exemption when an exemption is claimed for a spouse on:

    • Line 6c when the FS is 2

    • Line 6b when the FS is other than 2

Exemption Position 2 -"Number of Children on Line 6c Who Lived With You"
  1. Code exemption position 2 on the second line ("No. of children on line 6c who lived with you" ) in the exemption area.

  2. Up to nine exemptions can be edited in position 2. If more than nine exemptions are claimed:

    1. Edit "9" in exemption position 2.

    2. Edit the excess exemptions to position 7.

  3. Edit to position 2 all dependents with a child relationship. (See Figure 3.11.3-64)

    Exception:

    Do not move a child from exemption position 3 to position 2.

  4. Move misplaced exemptions from position 2 to the correct position.

    Exception:

    Do not move a child from exemption position 3 to position 2.

    Figure 3.11.3-64

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Exemption Position 3 - Number of Children on Line 6c Who Did Not Live With You Due to Divorce or Separation
  1. Code exemption position 3 on the third line ("No. of children on line 6c who did not live with you due to divorce or separation" ) in the exemption area.

  2. Look for misplaced exemptions in position 3.

    If on the third line the taxpayer includes his/her Then
    Parent, including those who did not live in the United States, Move the exemption to position 4.
    Qualifying child, Move the exemption to position 5.
    Foreign or other dependent, Move the exemption to position 6.

    Note:

    Do not move a child from exemption position 3 to position 2. See IRM 3.11.3.13.3.1.2 for child exemption relationships.

  3. If an entry is present in exemption position 3, Form 8332, Form 2120, or copy of divorce decree must be attached.

    1. If attached, edit SPC "A" . (See Figure 3.11.3-65)

      Note:

      Form 8332 or Form 2120 must show entries.

    2. If not attached or the form is blank, correspond with Form 3531, box 8, or Form 6001, box G.

      Note:

      If corresponding with Form 6001/6001A, "X" exemption position 3.

      Exception:

      Do not correspond if rejected ITIN condition is present for all dependents in exemption position 3.

    Figure 3.11.3-65

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Exemption Position 4 - Parents
  1. Code exemption position 4 in the margin to the right of the "lived with you" line.

  2. Edit to position 4 any dependent listed with a parent relationship. (See Figure 3.11.3-66.)

    Note:

    This includes parent exemptions even when there is an indication the dependent did not live in the United States.

    Figure 3.11.3-66

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Exemption Position 5 - Qualifying Children
  1. Code exemption position 5 directly under exemption position 4.

  2. Edit to exemption position 5 any "qualifying child." (See Figure 3.11.3-67)

    Note:

    Do not use Schedule EIC or column (4), line 6c, to determine these conditions.

    Figure 3.11.3-67

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Exemption Position 6 - Other Dependents
  1. Code exemption position 6 directly under exemption position 5.

  2. Edit to exemption position 6 all exemptions with other relationships. (See Figure 3.11.3-68)

    Figure 3.11.3-68

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Exemption Position 7 - Overflow Exemption Position
  1. Code exemption position 7 directly under exemption position 6.

  2. Edit to exemption position 7 all the excess exemptions from exemption position 2. When the number of exemptions in position 2 is more than nine:

    1. Edit "9" to exemption position 2.

    2. Edit the number of exemptions greater than nine to position 7. (See Figure 3.11.3-69)

    Figure 3.11.3-69

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Dependent's Name Control and TIN

  1. For Form 1040 or Form 1040A, up to four dependents' name controls and TINs can be transcribed.

Dependent's TIN
  1. Every dependent claimed must have a valid TIN. Search attachments, including Schedule EIC, Form 8965, and Form 2441, for any dependent TIN not listed or invalid on the Dependent lines (line 6c TY17 and prior).

    Note:

    If a Form W-7A is attached, see IRM 3.11.3.13.4.1.1.

  2. If the TIN is found, and:

    Four TINs are Then
    Already listed, "X" the name of the dependent(s) without a listed TIN.
    Not already listed, Edit up to four TINs to Dependent lines (line 6c TY17 and prior). (See Figure 3.11.3-70)

    Figure 3.11.3-70

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  3. If the TIN is invalid or not found on the return or attachments, take one of the following actions:

    If the taxpayer And Then
    Provides no TIN, less than four TINs are present for other dependents, "X" the dependents name (line 6c TY17 and prior). (See Figure 3.11.3-71)
    Provides no TIN, at least four TINs are present for other dependents, "X" dependents position 1-6 (exemption positions 2-7 TY17 and prior). (See Figure 3.11.3-72 and Figure 3.11.3-73.)

    Note:

    Also "X" the dependents name if present (line 6c TY17 and prior).

    Notes "Died" , (child born during the tax period and died during the same or next consecutive tax period), birth or death certificate, or copies of hospital medical record(s) are not attached, Correspond for the missing birth certificate. For Form 3531, use box 18 and for Form 6001, use box E.
  4. Correspond for missing TINs of all dependents when corresponding for other missing return items. For Form 3531, use box 3 and for Form 6001, use box F.

    Exception:

    Do not correspond for a missing dependent TIN when any of the following apply:
    • there is an indication the dependent was born during the tax period and died during the same or next consecutive tax period.
    • the taxpayer notates "Amish" , "Mennonite" , "Form 4029" , or if Form 4029 is attached.
    • there is an indication of "ITIN Rejected" .

    Figure 3.11.3-71

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    Figure 3.11.3-72

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    Figure 3.11.3-73

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Adoption TIN
  1. A taxpayer who does not know the TIN of the child he/she is adopting may still claim an exemption for the dependent by obtaining a temporary adoption taxpayer identification number (ATIN). ATINs are used for tax purposes only and are obtained by filing Form W-7A. ATINs are processed at the AUSPC only. ATINs appear in the following format: 9XX-93-XXXX.

  2. When Form W-7A is attached to the return, verify the child listed on the Form W-7A is being claimed as a dependent on the return.

    1. If the child is listed as a dependent in Exemption Position 2 and already has an ATIN, "X" the photocopy of the Form W-7A and continue processing the return.

    2. If the child is not claimed as a dependent, detach the Form W-7A and related documentation, and route to AUSPC. Edit an action trail on the return and continue processing. (Austin - follow local routing instructions.)

    3. If the child is listed as a dependent on the return and the TIN is missing, edit the received date on Form W-7A in MMDDYY format and detach it from the return. Route the Form W-7A and all related documentation to AUSPC. Edit an action trail on the return and continue processing.

      Note:

      Documentation attached to the Form W-7A should be at least one of the following:
      • Placement agreement between the parent(s) and the agency.
      • Document signed by the hospital authorizing the release of a newborn.
      • Court Order ordering or approving the placement of a child for legal adoption.
      • Affidavit signed by the adoption attorney or government official who placed the child with the parent(s) for legal adoption.

    4. Complete Form 3210 and mail Forms W-7A and documentation to AUSPC at:
      Internal Revenue Service
      3651 S. IH 35
      Stop: 6182
      Austin, TX 78741-7855

    Exception:

    AUSPC only: Do not detach Form W-7A from the return. Follow local routing procedures. When the ATIN unit sends the return back through processing after assigning the ATIN, they will edit the ATIN assignment date on the left side margin of refund returns only. For example, 02 RPD 05-14-2019. Edit this date on line 4 of Form 3471, Edit Sheet, if current date is after April 15, 2019.

Dependent's Name Control
  1. The name control(s) must be present for the first four dependents with TINs listed on the Dependent lines of Form 1040 (line 6c TY17 and prior). If missing, edit the name control(s) to the dependents name area.

    Note:

    When the dependent name control is the same for each dependent, ditto marks are acceptable after editing the first dependent name control.

  2. Determine the missing name control(s) in the following priority:

    1. From Schedule EIC or other supporting attachments. (See Figure 3.11.3-74)

      Caution:

      Form 8965 is not valid for determining Dependent’s Name Control.

      Note:

      If editing from attachments and the taxpayer indicates dependent children are eligible for the Child Tax Credit or Credit for Other Dependents, ensure the correlating checkboxes are marked on Dependent line (line 6c TY17 and prior), column (4).

      Note:

      Honor taxpayer’s ditto (“) marks when used to duplicate dependent last names.

    2. From the primary taxpayer's name control. (See Figure 3.11.3-75)

    Figure 3.11.3-74

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    Figure 3.11.3-75

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Form 1040

  1. The instructions provided in this subsection of the manual are for editing pages 1 and 2 of the Form 1040. These instructions include:

    • General editing procedures

    • Income (lines 1 through 6)

    • Adjusted gross income (line 7)

    • Total tax (line 15)

    • Federal Income Tax Withheld (line 16)

    • Refund or amount owed (lines 20 through 22)

    • Estimated Tax Penalty (line 23)

    • Third Party Designee

    • Signature

    • Preparer information

  2. All lines on Form 1040 are T-lines, except for the following:

    • Line 8

    • Line 11

    • Line 13

    • Line 19

  3. There are also seven T-Compute lines on Form 1040. These are:

    • Line 6 - Total Income

    • Line 7 - Adjusted Gross Income

    • Line 10 - Taxable Income

    • Line 15 - Total Tax

    • Line 18 - Total Payments

    • Line 20a - Refund Amount

    • Line 22 - Balance Due Amount

    Note:

    Refer to Job Aid 2431-009 for an illustration of all Form 1040 T-lines and T-Compute lines for all related transcribed forms and schedules, and dollars and cents editing requirements.

Form 1040, General Editing Instructions

  1. Edit RPC "L" if there are no significant T-line entries present or edited from attachments on lines 1 through 23. Also edit CCC "B" .

  2. Edit RPC "V" when the tax form is computer generated. Computer-generated forms are identified by a three-alpha character software code in the bottom margin of page 1 or 2. (See Figure 3.11.3-76.)

    Exception:

    Do not edit RPC "V" on computer-generated returns when there is an indication the return was prepared by Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) (e.g., the presence of an "S" within the PTIN field). See IRM 3.11.3.14.8.2.

    Figure 3.11.3-76

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  3. Some special conditions on returns will require special editing procedures. Taxpayers are instructed to note certain conditions on the return which you must identify. Edit these returns using instructions in the "Special Situations and Returns" subsection. These special situations are:

    Special Situations IRM Reference
    Combat Zone and other Military Operations IRM 3.11.3.6.1.1
    Killed in Terrorist Action (KITA) IRM 3.11.3.6.1.2
    National Disaster/Emergency Relief Program IRM 3.11.3.6.1.3
    Hardship IRM 3.11.3.6.1.4
    Examination case IRM 3.11.3.6.1.5
    Frivolous Filer/Non-Filer Returns IRM 3.11.3.6.1.6
    Refund Schemes IRM 3.11.3.6.1.7
    Identity Theft IRM 3.11.3.6.1.8
  4. Some types of returns will require special editing procedures. Edit the returns using the instructions in the "Special Situations and Returns" subsection. These special returns are:

    Special Returns IRM Reference
    Amended IRM 3.11.3.6.2.1
    Unprocessable IRM 3.11.3.6.2.2
    Blank IRM 3.11.3.6.2.3
    Incomplete IRM 3.11.3.6.2.4
    Uncomputed IRM 3.11.3.6.2.5
    Blocked or Deferred Income IRM 3.11.3.6.2.6
    Correspondence Imaging System (CIS) IRM 3.11.3.6.2.7
    Combined Tax Liabilities IRM 3.11.3.6.2.8
    Community Property IRM 3.11.3.6.2.9
    Form 8938, Statement of Foreign Financial Assets IRM 3.11.3.6.2.10
    Injured Spouse IRM 3.11.3.6.2.11
    Innocent Spouse IRM 3.11.3.6.2.12
    International IRM 3.11.3.6.2.13
    Joint Committee IRM 3.11.3.6.2.14
    Misblocked IRM 3.11.3.6.2.15
    Misfiled IRM 3.11.3.6.2.16
    Reinput IRM 3.11.3.6.2.17
    Returns Secured by Collections IRM 3.11.3.6.2.18
    Short Period IRM 3.11.3.6.2.19
    Substitute for Return IRM 3.11.3.6.2.20
    52-53 Week IRM 3.11.3.6.2.21
    Blind Trust IRM 3.11.3.6.2.22
  5. Refer to the decedent return instructions in IRM 3.11.3.10 when any of the following are present:

    • "Deceased" is written on the return

    • A date of death is present on the return

    • "Surviving spouse" is written in the caption or the signature area

    • There is any other indication the taxpayer is deceased

    • "Estate of" is present in the caption.

  6. Other notations and conditions may also require special editing. These are included in the line-by-line instructions.

Income, Adjustments, and Credits - Lines 1 through 17

  1. Edit amounts on lines 1 through 14 in dollars only.

  2. Edit amounts on lines 15 through 23 in dollars and cents.

Line 1 - Wages
  1. Use the table below for editing conditions on line 1, Form 1040:

    Condition on Line 1 Action
    Entry on line 1, no Form W-2 attached. Take no action. Form W-2 is not required for line 1. (May be required as support for earned income when EIC is claimed.)
    See IRM 3.11.3.14.2.18
    Line 1 is blank. Edit amounts from Wages, tips and other compensation box on Forms W-2.

    Exception:

    Do not edit to line 1 if Form W-2 income is for a minister, insurance salesman, or statutory employee and the income is reported elsewhere on the return.

    Amount deducted from line 1. If the same adjustment amount is also deducted on Schedule 1 lines 23 - 36, adjust line 1 to include the amount.
    self-employment Income (See Exhibit 3.11.3-10 for an extensive listing of types of self-employment.)
    1. Subtract from line 1 and add to Schedule 1 line 21.

      Note:

      It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

    2. If amount is $434 or more and Schedule SE is not attached or reported, also edit RPC "N" .

    3. If Form 1099-MISC is attached with or without a notation and an amount is present in box 7, Form 1099-MISC, edit RPC "N" unless the amount is less than $434 or Schedule SE is present.

      Note:

      Do not edit RPC "N" if any of the following conditions exist:
      - Self-Employment and non self-employment cannot be broken down.
      - Taxpayer reported self-employment income on line 1 and included the amount on Form 8919.

  2. Use the table below for editing taxpayer notations on line 1, Form 1040:

    Noted by Taxpayer on Line 1 Action
    Adoption Benefit (AB) Take no action.
    Combat Pay Excluded Edit CCC "Y" and an Action Trail.
    Dependent Care Benefits (DCB) Take no action.
    Deferred Compensation (DFC) Edit RPC "B" .
    Disability Pension
    1. Delete from line 1 if indicated to be nontaxable.

    2. If statement indicates treatment as retirement pension, delete from line 1 and add to line 4b.

      Note:

      If Disability Pension is identified on line 4a or 4b, take no action.

    3. If Form 1099-R, box 7, contains Distribution Code 3, take no action.

    Foreign Employer Compensation (FEC) Take no action.
    Fringe Benefits (FB) Take no action.
    Gambling (Gross: losses not subtracted)
    1. Subtract gambling amount from line 1 and add to Schedule 1 line 21.

      Note:

      It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

    2. If Schedule A is attached, see IRM 3.11.3.21.13.

    Gambling (Net: winnings minus losses)
    1. No indication of a professional gambler:

      1. If a gain or a loss, "X" line 1.

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

        Note:

        It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

      3. If net amount is zero, and no gross amount is indicated on the dotted portion of line 1, and:
        • Form W-2G is attached, edit CCC "Y" and an Action Trail.
        • Form W-2G is not attached, correspond for gross winnings
        with Form 3531/6001, using fill-in "9" , per Exhibit 3.11.3-17.

    2. Indication of professional gambler:

      1. Subtract gambling amount from line 1 and add to Schedule 1 line 12.

        Note:

        It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

      2. Correspond for Schedule C, if not attached.

      3. If Schedule SE is not attached or reported, also correspond for SE tax liability when the amount is $434 or more. For Form 6001, use box "W" . For Form 3531, check box 10, SE liability box.

    Household Employee Income (HSH) Edit SPC "E" .

    Note:

    "HSH" may appear to the left of line 1, or on line 1 with a dollar amount present.

    Note:

    HSH is an acceptable source for EIC.

    Non-Disability Pension Move the amount to line 4b. See Figure 3.11.3-77.
    Non-Employee Compensation Process using the instructions for Self-Employment income provided above in (1).
    Non-Taxable Income:
    • Accident and health insurance proceeds

    • "Black lung" benefits

    • Casualty insurance and other reimbursements

    • Child support

    • Damages awarded for physical injury or sickness

    • Federal Employees' Compensation Act (FECA) payments

    • Interest on state or local government obligations

    • Public Aid

    • Supplemental Security Income (SSI)/SSI Disability

    • Tax-Sheltered Annuities

    • Temporary Assistance for Needy Families (TANF)

    • VA Benefits

    • Welfare Benefits/Payments

    • Workforce Payments

    • Worker's Compensation

    Subtract all income identified as nontaxable from line 1.
    Pension See Disability or Non-Disability Pension.
    Prisoner Income (PRI) Edit RPC "B" .
    See IRM 3.11.3.6.1.6(6).
    Railroad Retirement Benefits
    1. If gross and taxable amounts with a difference of $1 or more can be determined, move to lines 4a and 4b.
      See IRM 3.11.3.14.2.5.

    2. Otherwise, edit the amount to line 4b.

    Scholarship (SCH), Fellowship, Grant, or Stipend
    1. Edit RPC "B" .

    2. If indicated to be nontaxable, subtract from line 1 and correct any other taxpayer adjustments and edit RPC "G" .

    Sick Pay Take no action.
    Social Security Benefits
    1. If gross and taxable amounts can be determined, move to lines 5a and 5b.

    2. Otherwise, move the amount to line 5b.

    Strike Pay/Benefits Take no action.
    Sub-Pay TRA (Repayment of Supplemental Unemployment Benefits (SUB)) If repayment is indicated on dotted portion of Schedule 1 line 36 and it is for SUB amounts received in:
    • Tax period of return - delete the repayment amount and adjust line 1 to exclude it.

    • Prior tax period - do not adjust line 1.

      Note:

      If the year of payments is not noted, assume they were made in the tax period of the return.

    Unemployment Compensation Subtract from line 1 and add to Schedule 1 line 19.

    Note:

    It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

  3. Use the table below for editing taxpayer notations on other than line 1, Form 1040:

    Noted by Taxpayer on other than Line 1 Action
    Dependent Care Benefits (DCB) Move to line 1.
    Deferred Compensation (DFC)
    1. Move to line 1.

    2. Edit RPC "B" .

    Disability Pension (not on lines 4a or 4b (lines 16a or 16b TY17 and prior)) identified from:
    • Form 1099-R with Code 3 in Box 7.

    • Disability indicated on Form 1099-R.

    • Other indication that Disability Pension is included on the return.

    Move to line 1.
    Scholarship (SCH), Fellowship, Grant, or Stipend
    1. Move the taxable amount to line 1.

    2. Edit RPC "B" .

    Sick Pay Move to line 1.
    Strike Pay/Benefits Move to line 1.
    W-2 Income Move to line 1.

    Exception:

    Leave where found and edit RPC"S" if taxpayer is a minister, insurance salesman, or if statutory employee is indicated.

    Figure 3.11.3-77

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Line 2a -Tax-Exempt Interest (TEI)
  1. If Schedule B is attached, perfect line 2a when it is blank or amount differs from tax-exempt interest amount on Schedule B, Part I by more than $1.

  2. Tax-exempt interest indications include:

    • "Tax-Exempt Interest" ("TEI" ) or "Tax Exempt" ("TE" )

    • "Tax-Exempt Municipal Bonds"

    • "Exempt," "Exempt Interest," "EI," "E" or "I"

    • "Tax Free" or "Tax-Free Interest"

    • "Nontaxable" or "Nontaxable Interest"

Line 2b -Taxable Interest Income
  1. If Schedule B is attached, perfect line 2b when it is blank or amount differs from interest amount on Schedule B, line 4 by more than $1.

Line 3b - Ordinary Dividends
  1. If Schedule B is attached, perfect line 3b when it is blank or amount differs from ordinary dividends amount on Schedule B, line 6 by more than $1.

  2. If the amount on line 3b matches the entry on line 1, Form 1040, "X" the amount on line 3b.

  3. If line 3b is blank, dash or zero, and line 3a has an entry:

    • arrow the entry on line 3a to line 3b, or

    • edit the entry on line 3a to line 3b and "X" line 3a.

  4. If line 3b is less than 3a, "X" line 3b.

  5. If an amount identified as "Alaska Permanent Fund" is present on line 3b:

    1. "X" line 3b.

    2. Edit the amount to Schedule 1 line 21.

      Note:

      It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

Lines 4a and 4b - IRAs, Pensions, and Annuities
  1. Delete the amount on line 4a when lines 4a and 4b are the same or there is a difference of less than $1. See Figure 3.11.3-78.

  2. Do not edit the amount from 4a on line 4b when line 4b is blank.

  3. Do not move pension income from line 4b to line 1.

  4. Move the gross and taxable amounts of Railroad Retirement Benefits (RRB) to lines 4a and 4b when claimed elsewhere on the return.

    Figure 3.11.3-78

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Lines 5a and 5b - Social Security Benefits
  1. If an amount is present on line 5b and the amount on line 5a is the same or line 5a is blank:

    1. If Form SSA-1099 is attached, edit the gross Social Security amount in box 5 to line 5a.

    2. Take no action when the gross amount of Social Security payments cannot be determined.

  2. "X" a negative amount on line 5a or 5b.

  3. Take no action when the taxpayer writes:

    • "D" on line 5a or 5b

    • "Lump-Sum Exclusion" or "LSE" to the left of line 5a

Line 6 - Total Income
  1. Compute and edit line 6 when it is blank, dash or zero and there are entries on lines 1 through 5 and/or Schedule 1 line 22.

  2. If there is an amount entered on the Schedule 1, line 22 line, Schedule 1 must be attached. If not attached, correspond for Schedule 1. If corresponding for Schedule 1 for entry on line 6 and line 7, correspond for only one missing Schedule 1. Use the first entry amount and line number on the return.

    Exception:

    If a Schedule 1 can be dummied from attachments, do not correspond for a Schedule 1 unless already corresponding for other missing information. See paragraph (3) below.

  3. Use the following table as a guide to dummying Schedule 1:

    If Then
    Schedule C is attached with an entry on line 31, Dummy the line 31 amount to line 12, Schedule 1.
    Schedule D is attached with an entry on line 7 and/or line 15, Dummy the combined total of lines 7 and 15 to line 13, Schedule 1.
    Form 4797 is attached with an entry on line 18b, Dummy the line 18b amount to line 14 of Schedule 1.
    Schedule E is attached with an entry on line 41, Dummy the line 41 amount to line 17, Schedule 1.
    Schedule F is attached with an entry on line 34, Dummy the line 34 amount to line 18, Schedule 1.
Line 7 - Adjusted Gross Income
  1. Perfect line 7 as follows when it is blank, dash, zero, or illegible:

    • If attached, subtract Schedule 1 line 36 amount from Form 1040 line 6

    • Otherwise, enter the amount from line 6.

Line 8 - Standard Deduction or Itemized Deductions (Not Transcribed)
  1. Schedule A with entries present must be attached if any of the following conditions exist. Correspond if missing.

    Exception:

    Do not correspond for Schedule A if the taxpayer computed line 7 to zero or a negative dollar amount.

    1. "IE" is noted to the left of line 8, and the amount claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. The amount on line 8 is not any of the standard deduction amounts listed below and the "Someone can claim you as a dependent" or Someone can claim your spouse as a dependent (FS 2 or FS 6), checkbox is not marked. See Figure 3.11.3-79.

      Note:

      Do not factor in filing status or ABI when making determinations on standard deduction.

    Filing Status ABI Boxes marked Appropriate Amount
    1 - Single 0 $12,000
    1 - Single 1 $13,600
    1 - Single 2 $15,200
    2 - Married Filing Jointly or 5 - Qualifying Widow(er) with Dependent 0 $24,000
    2 - Married Filing Jointly or 5 - Qualifying Widow(er) with Dependent 1 $25,300
    2 - Married Filing Jointly or 5 - Qualifying Widow(er) with Dependent 2 $26,600
    2 - Married Filing Jointly or 5 - Qualifying Widow(er) with Dependent 3 $27,900
    2 - Married Filing Jointly or 5 - Qualifying Widow(er) with Dependent 4 $29,200
    3 or 6- Married Filing Separately 0 $12,000
    3 or 6- Married Filing Separately 1 $13,300
    3 or 6- Married Filing Separately 2 $14,600
    3 or 6- Married Filing Separately 3 $15,900
    3 or 6- Married Filing Separately 4 $17,200
    4 or 7- Head of Household 0 $18,000
    4 or 7- Head of Household 1 $19,600
    4 or 7- Head of Household 2 $21,200

    Figure 3.11.3-79

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Line 9 - Qualified Business Income Deduction
  1. (Reserved)

Line 10 - Taxable Income
  1. Compute and edit line 10 only when it is blank or illegible, and there are entries leading to a positive total.

Line 11 – Tax
  1. If box "1" and/or "2" on line 11a is/are marked, the indicated form (i.e., Form 8814 or Form 4972) must be attached. If missing, correspond for the applicable missing form.

  2. If box "3" on line 11a is marked and "965" is noted, edit RPC "F" . IRC 965 Transition Tax Statement must be attached. However, if not attached, correspond only if corresponding for other missing information.

    Note:

    If corresponding with Form 6001 use Fill-In "56" .

  3. Line 11 is not a T-line. If the Schedule 2 checkbox indicator is checked, this is an indication that the amount on line 11 includes an amount from Schedule 2, Schedule 2 must be attached. If not attached, correspond for Schedule 2.

Line 12- Total Credits
  1. If an amount is present on line 12, the Schedule 3 checkbox indicator is checked Schedule 3 must be attached.

    • If Schedule 3 is not attached , Correspond for Schedule 3.

    • If Schedule 3 is attached, line 12 of Form 1040 is $500 or more and line 48-54 of Schedule 3 are blank, correspond for an explanation unless the taxpayer indicated FNS. For Form 6001, check box "P" . For Form 3531, check box "12" .

    Exception:

    Do not correspond if the amount on line 12a matches the amount on line 12. Do not correspond and delete the entry on line 12, when line 10 is (or can be determined to be) zero or a negative amount, or when it can be determined the taxpayer carried the line 10 or 11 amount forward in error.

Line 14 - Other Taxes
  1. If an amount is present on line 14 and Schedule 4 is not attached or Schedule 4 is attached and lines 57 through 63 are blank, correspond for missing Schedule 4.

Line 15 - Total Tax
  1. Edit line 15 as dollars and cents when adjusting or computing and editing amounts.

  2. Compute and edit line 15 when it is blank, dash, zero (0), or illegible and there are entries leading to a total. If line 11 has a significant entry and there are no entries on lines 12 through 14, edit the line 11 amount on line 15.

  3. Use the table below for editing CCC "B" :

    If And Then
    Line 10 is negative, zero (0), dash or "None" is noted, or it can be computed to be negative or zero (0), Lines 11a through 23 (excluding 20b, c, and d) are blank, dash, zero (0), "None" or "N/A" . Edit CCC "B" . See Figure 3.11.3-80.
    A significant entry on line 11a is less than or equal to line 12, Lines 13 through 23 (excluding lines 20b, c, and d) are blank, dash, zero (0), "None" or "N/A" , Edit CCC "B" . See Figure 3.11.3-81.
  4. Delete any amount included in line 15 when there is an indication that it is from Form 5330 (Return of Excise Taxes Related to Employee Benefit Plans). Detach Form 5330 and route it to Receipt and Control.

    Figure 3.11.3-80

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    Figure 3.11.3-81

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Line 16 - Withholding
  1. Take one of the following actions for line 16:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    If none of the conditions described above apply, take no action

  2. If corresponding for other missing items, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ For Form 6001 use box H, for Form 3531 use box 4.

    Note:

    An acceptable alternative source for withholding support may be a worksheet or attachment if it contains similar information as provided on a Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions from Retirement Plans, Insurance Contracts, etc. Minimum requirements include the name of the employer, income and withholding. An IRS Transcript is always acceptable.

    Exception:

    "Form 1099" , "1099" , "W-2" , "Form W-2" or similar statement written in the line 16 area or on an attached worksheet is not an acceptable source for withholding support.

  3. Edit CCC "8" on a refund return when withholding is significant and there is only a single supporting document attached that is one of the following:

    • A substitute statement (e.g., substitute Form W-2, turbo tax software statement, or employer-provided earnings statement with year-to-date totals) or attachment or worksheet as explained at IRM 3.11.3.14.2.16(2).

      Note:

      Edit CCC "8" when there is one Form 4852 present or multiple Forms 4852 present to support withholding and no other withholding documentation is present. See Paragraph (4) below.

    • Handwritten, see Figure 3.11.3-82

    • Other than a computer-printed Form W-2

    • Altered name, SSN, wages, or federal income tax withheld.

    Exception:

    Do not edit CCC "8" when Form 1099-R, Form W-2G, or IRS Transcript is attached, or if the return is identified as a military or combat zone return. See the special military return instructions in IRM 3.11.3.6.1.1.

    Note:

    To be considered a "single supporting document" , the document must show support from only one employer. Consider Form 4852 and an Employer-provided earnings statement with the same employer and identical amounts to be a "single supporting document" .

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Figure 3.11.3-82

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Line 17 - Refundable Credits
  1. If there is an amount present on the Schedule 5 line, indicating the amount on line 17 includes an amount from Schedule 5, Schedule 5 must be attached. Correspond for Schedule 5 if missing.