3.11.3 Individual Income Tax Returns

Manual Transmittal

October 31, 2024

Purpose

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

Material Changes

(1) IRM 3.11.3.1 Changed Wage and Investment to Taxpayer Services. IPU 24U0593 issued 04-30-2024.

(2) IRM 3.11.3.1(4) Updated Paper Processing Branch to Returns Processing Branch.

(3) IRM 3.11.3.2.1 Updated program codes to re-instate the codes for Form 1040-SR. IPU 24U0138 issued 01-26-2024.

(4) IRM 3.11.3.2.2.1(3) Added reference to Figure 9.

(5) IRM 3.11.3.3.3 Included 1040-SR. IPU 24U0524 issued 04-15-2024.

(6) IRM 3.11.3.3.6.1(2) Updated first bullet and deleted note as no longer applicable due to received date procedural changes. IPU 24U0335 issued 03-04-2024.

(7) IRM 3.11.3.4.2.1(3) Re-worded for plain language.

(8) IRM 3.11.3.4.3(4) Deleted reference to 6001-A.

(9) IRM 3.11.3.5.2.1 Added letters 4883C and 5216.

(10) IRM 3.11.3.5.2.2 Deleted Form 6001-A. Form 6001 will be used for current and prior year correspondence.

(11) IRM 3.11.3.5.2.2(2) Added note with instructions for no research results. IPU 24U0021 issued 01-02-2024.

(12) IRM 3.11.3.5.2.2(8) Revised due to received date procedural changes. IPU 24U0335 issued 03-04-2024.

(13) IRM 3.11.3.5.3.2 Rearranged instructions under signature to make more clear. Added no reply instructions for Schedule 2 Lines 1a-1f and Schedule 3 line 13c.

(14) IRM 3.11.3.6.1.3(2) Added new paragraph for East Palestine Train Derailment Relief instructions. IPU 24U0744 issued 06-11-2024.

(15) IRM 3.11.3.6.1.3 Deleted reference to Form 6001-A.

(16) IRM 3.11.3.6.2.7(4) Added "do not research" and rearranged sentences to make more clear.

(17) IRM 3.11.3.6.2.16 Deleted (4) and note as no longer applicable due to receive date procedural changes. Subsequent paragraphs renumbered. IPU 24U0335 issued 03-04-2024.

(18) IRM 3.11.3.8.1 Revised Figure 3.11.3-11. IPU 24U0417 issued 03-15-2024.

(19) IRM 3.11.3.8.1(6) Deleted and rewrote remainder of section for updates to reflect revised received date procedures. Paragraphs renumbered as necessary. IPU 24U0335 issued 03-04-2024.

(20) IRM 3.11.3.8.2(1) Deleted "it is required and" from the paragraph. IPU 24U0417 issued 03-15-2024.

(21) IRM 3.11.3.8.2(3) c) Deleted reminder. IPU 24U0335 issued 03-04-2024.

(22) IRM 3.11.3.8.2 Rearranged sentences to be more clear.

(23) IRM 3.11.3.8.3 Rewrote (2) and deleted (3) and (4) as no longer necessary due to received date procedural changes. IPU 24U0335 issued 03-04-2024.

(24) IRM 3.11.3.8.3 Deleted note in (1) - no longer applicable.

(25) IRM 3.11.3.8.4 Deleted 2nd and 4th rows of (5) chart and rewrote row 1 THEN column. Deleted (5) exception and placed wording in new (6). IPU 24U0335 issued 03-04-2024.

(26) IRM 3.11.3.8.4(5) Deleted paragraph 5. IPU 24U0524 issued 04-15-2024.

(27) IRM 3.11.3.8.5(3) Chart - Revised THEN column to reflect changes in received date procedures and deleted exception. IPU 24U0335 issued 03-04-2024.

(28) IRM 3.11.3.9.2.3(5) Revised exception with instruction for no research results. IPU 24U0021 issued 01-02-2024.

(29) IRM 3.11.3.9.2.6.1 Rearranged para (3) to be more clear.

(30) IRM 3.11.3.10.1(8) Added instructions to look at gross income. IPU 24U0524 issued 04-15-2024.

(31) IRM 3.11.3.10.1(8) Changed Gross Income to Total Income.

(32) IRM 3.11.3.10.6(1) Revised (c) to say Received date. IPU 24U0335 issued 03-04-2024.

(33) IRM 3.11.3.12.1(4) Reworded for consistency to mirror IRM 3.21.3.13. IPU 24U0138 issued 01-26-2024.

(34) IRM 3.11.3.12.1(4) Deleted 2nd mention of FS 4 or 5.

(35) IRM 3.11.3.12.2 Corrected Schedule 2441 to Form 2441.

(36) IRM 3.11.3.13.1 Revised dependent position 6.

(37) IRM 3.11.3.13.1.1 Added gender neutral language to (4) and (5). IPU 24U0524 issued 04-15-2024.

(38) IRM 3.11.3.13.1.1(6) Revised to include any position.

(39) IRM 3.11.3.13.2.1(3) Added note to code for dependents.

(40) IRM 3.11.3.14.2.1 Revised Figure 3.11.3-64 to correct line editing requirements. IPU 24U0252 issued 02-14-2024.

(41) IRM 3.11.3.14.2.8 Added illegible to (1).

(42) IRM 3.11.3.14.2.12(3) Added instruction to edit SPC 3 if SIE is written in.

(43) IRM 3.11.3.14.2.17 Added illegible to (1).

(44) IRM 3.11.3.14.2.24 Added note that this list is not all-inclusive.

(45) IRM 3.11.3.14.2.30(4) Cross reference updated. IPU 24U0701 issued 05-29-2024.

(46) IRM 3.11.3.14.2.32(5) Added PYEI to list of supporting income.

(47) IRM 3.11.3.14.2.33 Revised to include instructions for the CTC dependent checkboxes. IPU 24U0021 issued 01-02-2024.

(48) IRM 3.11.3.14.2.35 Deleted reference to prior year Recovery Rebate Credit.

(49) IRM 3.11.3.14.2.36(2) Added note that this list is not all-inclusive.

(50) IRM 3.11.3.14.2.37 Added illegible.

(51) IRM 3.11.3.14.2.38(3) Added illegible.

(52) IRM 3.11.3.14.5(2) Deleted Form 6001-A.

(53) IRM 3.11.3.14.7 Deleted (2), (4), and (5) as no longer applicable. Paragraphs renumbered appropriately. IPU 24U0252 issued 02-14-2024.

(54) IRM 3.11.3.15(4) Revised the T-line chart for Schedule 1.

(55) IRM 3.11.3.15.9(3) Added instructions for Indian Gaming to chart. IPU 24U0266 issued 02-16-2024.

(56) IRM 3.11.3.15.9 Removed instructions for editing RPC G when Alaska Permanent Fund is noted. IPU 24U0212 issued 02-05-2024.

(57) IRM 3.11.3.15.20 Deleted instruction to look for repeating and sequential digits.

(58) IRM 3.11.3.16(4) Revised the T-line chart for Schedule 2.

(59) IRM 3.11.3.16.1 Added instructions for lines 1a-1y.

(60) IRM 3.11.3.16.10 Alternative Minimum Tax moved to line 2 for TY2024.

(61) IRM 3.11.3.16.14 Re-worded instruction for clear language.

(62) IRM 3.11.3.16.20.5 Added instruction for PWA8933 and PWA7210.

(63) IRM 3.11.3.16.21 Added instructions for Net EPE Recapture (Form 4255).

(64) IRM 3.11.3.16.23(2) Revised note to match Attachment Guide Exhibit 3.11.3-1. IPU 24U0138 issued 01-26-2024.

(65) IRM 3.11.3.17 Revised the T-line chart for Schedule 3. Deleted instruction to edit sequence number on Schedule 3 page 2.

(66) IRM 3.11.3.17.6 Revised to provide clear instructions on what to do if page 3 of 5695 is missing. IPU 24U0417 issued 03-15-2024.

(67) IRM 3.11.3.17.7.5 Revised to add Form 8936, Schedule A must also be attached. IPU 24U0417 issued 03-15-2024.

(68) IRM 3.11.3.17.7.7 Revised to add Form 8936, Schedule A must also be attached. IPU 24U0417 issued 03-15-2024.

(69) IRM 3.11.3.17.12(1) Added note regards to fuel tax credits. IPU 24U0138 issued 01-26-2024.

(70) IRM 3.11.3.17.13.2(1) Removed instructions to edit CCC Y and reserved the line. IPU 24U0138 issued 01-26-2024.

(71) IRM 3.11.3.17.13.3 Schedule 3 Line 13c is now transcribed.

(72) IRM 3.11.3.17.13.4 Added new (1) referencing fuel tax credits. IPU 24U0138 issued 01-26-2024.

(73) IRM 3.11.3.18.1 Revised the T-line chart for Schedule A.

(74) IRM 3.11.3.23.1.1.5 Added Figure for editing SPC A when NPA is noted in line 26 area.

(75) IRM 3.11.3.23.1.2 Added instruction for blank page 2 of Schedule E.

(76) IRM 3.11.3.26.3(2) Revised chart for TY23.

(77) IRM 3.11.3.28 Updated title for Schedule J.

(78) IRM 3.11.3.29 Revised the T-line chart for Form 2441.

(79) IRM 3.11.3.29.1.1 Rearranged SPC D instructions to make more clear.

(80) IRM 3.11.3.29.1.2 Moved note to (2). Renumbered remaining paragraphs.

(81) IRM 3.11.3.29.1.3 Changed TIN to SSN.

(82) IRM 3.11.3.29.2 Removed TY21 editing instructions.

(83) IRM 3.11.3.30 Revised the T-line chart for Form 3800.

(84) IRM 3.11.3.30.1(4) Exception - Added bullet to list for Form 3800 Part III or IV. IPU 24U0021 issued 01-02-2024.

(85) IRM 3.11.3.30.1(5) Added instructions for editing Audit Code W. Deleted instructions to correspond for a missing Form 8910.

(86) IRM 3.11.3.31.2(1) Revised chart for TY23.

(87) IRM 3.11.3.32.1.1(1) Revised the FEMA number limits. IPU 24U0021 issued 01-02-2024.

(88) IRM 3.11.3.37.1 Moved para (6) to para (4).

(89) IRM 3.11.3.38.2(1) Added new (1) for TY23 information, all subsequent paragraphs renumbered.

(90) IRM 3.11.3.42.2(1) Added new chart for TY23 information, all subsequent paragraphs renumbered.

(91) IRM 3.11.3.43.1 Deleted instructions to "X" Schedule EIC.

(92) IRM 3.11.3.43.10 Deleted instructions to "X" Prior Year Schedule EIC.

(93) IRM 3.11.3.43.10 Removed FS2 information from (1) and (2); rewrote (5) to update TY and clarify; updated (6) to limit where information can be located. IPU 24U0021 issued 01-02-2024.

(94) IRM 3.11.3.44(2) Revised the T-line chart for Schedule H.

(95) IRM 3.11.3.44.16 Added new (1) for TY23 information, all subsequent paragraphs renumbered.

(96) IRM 3.11.3.45.1 Revised the T-line chart for Schedule 8812. Moved para (4) and (5) to new subsection.

(97) IRM 3.11.3.45.3 Added new (1) and (2) for TY23 information, all subsequent paragraphs renumbered. 6001-A changed to 6001 (11).

(98) IRM 3.11.3.51(7) Reformatted sentence to create list.

(99) IRM 3.11.3.52(2) Revised the T-line chart for Form 8888.

(100) IRM 3.11.3.56(1) Updated Form reference. IPU 24U0524 issued 04-15-2024.

(101) IRM 3.11.3.56(3) Rewrote paragraph for plain writing.

(102) IRM 3.11.3.61(2) Revised the T-line chart for Form 8936.

(103) IRM 3.11.3.62(4) Revised the T-line chart for Form 8936 Schedule A.

(104) IRM 3.11.3.62.1 Added new subsection for Line 2, VIN; following subsections renumbered. IPU 24U0021 issued 01-02-2024.

(105) IRM 3.11.3.62.2 Added percentage examples to table.

(106) IRM 3.11.3.67 Added paragraph for multiple 5695. IPU 24U0593 issued 04-30-2024

(107) IRM 3.11.3.67(4) Revised the T-line chart for Form 5695.

(108) IRM 3.11.3.73.1 Deleted separate instruction to edit received date. Added take no action to (5) Changed instructions to use 6001 instead of 6001-A in (6).

(109) IRM 3.11.3.73.2 Rewrote section to reflect updated requirements for processing statute returns. IPU 24U0252 issued 02-14-2024.

(110) IRM 3.11.3.73.2(3) Added Note to process recently stamped statutes to prevent looping returns.

(111) IRM 3.11.3.73.2(3) Added note to process return if it has a new statute stamp.

(112) IRM 3.11.3.73.3(4)(a) Changed "refer to" to "follow the format" .

(113) IRM 3.11.3.73.3.1.1 Added TY21 and prior to title.

(114) IRM 3.11.3.73.3.1.6 Added TY2023 to chart.

(115) IRM 3.11.3.73.3.1.10 Removed Recovery Rebate Credit.

(116) IRM 3.11.3.73.3.2.2(1) Added new (1) for TY23 information, all subsequent paragraphs renumbered.

(117) IRM 3.11.3.73.3.3.2 Changed instructions to use 6001 instead of 6001-A.

(118) IRM 3.11.3.73.3.4 Added instruction to edit sequence number on page 2 of Schedule 3.

(119) IRM 3.11.3.73.3.4.2(2)(a) Added Form 8936 Schedule A.

(120) IRM 3.11.3.73.3.4.3 Added TY2023 to chart.

(121) IRM 3.11.3.73.3.4.5(3) Added clarification. IPU 24U0593 issued 04-30-2024.

(122) IRM 3.11.3.73.3.4.7(1) Added clarification. IPU 24U0593 issued 04-30-2024.

(123) Exhibit 3.11.3-1 Revised information for Form 1127 to reflect received date procedural changes. IPU 24U0335 issued 03-04-2024.

(124) Exhibit 3.11.3-1 Reworded information for additional clarity, the following letters: 4883C, 5071C, 5216C, 5447C/5447C SP, 5747C/5747C SP, and 6167C. IPU 24U0138 issued 01-26-2024.

(125) Exhibit 3.11.3-1 Revised CP 01A to do not detach and continue processing. IPU 24U0021 issued 01-02-2024.

(126) Exhibit 3.11.3-1 Added Series to CP54. Updated name on LTR 5087C and 5071C. Added instruction to refer to Document 12990 for Form 3210.

(127) Exhibit 3.11.3-2 Reserved Action Code 336. IPU 24U0021 issued 01-02-2024.

(128) Exhibit 3.11.3-2 Deleted definition for Action Code 510. Not applicable to Code and Edit.

(129) Exhibit 3.11.3-3 Added Audit Code W.

(130) Exhibit 3.11.3-4 Revised CCC Q to conform with IRM instructions. IPU 24U0021 issued 01-02-2024.

(131) Exhibit 3.11.3-6 Added RPC 9.

(132) Exhibit 3.11.3-7 Added SPC 5 explanation. IPU 24U0744 issued 06-11-2024.

(133) Exhibit 3.11.3-7 Deleted SPC N and added SPC Q and 3.

(134) Exhibit 3.11.3-15 Revised the definition of received date to remove guidance based on specific forms. IPU 24U0335 issued 03-04-2024.

(135) Exhibit 3.11.3-15 Added TS and W&I to the Acronym chart. IPU 24U0593 issued 04-30-2024.

(136) Exhibit 3.11.3-15 Updated receive date definition. Added SIE to acronym table.

(137) Exhibit 3.11.3-18 Corrected line and part numbers in paragraphs 26, 27, 30 and 34. IPU 24U0701 issued 05-29-2024.

(138) Exhibit 3.11.3-18 Added fill-in paragraphs for IRC 965 and Form 8936 Schedule A.

(139) IRM 3.11.3 Updated the following items as required annually:

  • Dates.

  • Form line number changes.

  • All referenced dollar amounts were updated.

  • Editorial changes as needed.

Effect on Other Documents

IRM 3.11.3, Individual Income Tax Returns, dated November 28, 2023, (effective January 1, 2024), is superseded. This IRM also incorporates the following IRM Procedural Updates (IPUs) issued between January 2024 and September 2024: 24U0021, 24U0138, 24U0212, 24U0252, 24U0266, 24U0335, 24U0417, 24U0524, 24U0593, 24U0701, 24U0744.

Audience

Taxpayer Services, Code and Edit Tax Examiners

Effective Date

(01-01-2025)

James L. Fish
Director, Submission Processing
Taxpayer Services

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 Taxpayer Services (TS), Submission Processing Service Centers, Code & Edit Units are the primary users of this IRM.

  3. Policy Owner: The Director of Submission Processing oversees the policies in this IRM.

  4. Program Owner: The Code & Edit/ERS IMF Section of the Returns Processing Branch of Submission Processing oversees 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, have invalid or misplaced entries or are computed incorrectly.

  2. Instructions in this manual are for Form 1040 / 1040-SR, 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

  2. Policy Statements for Submission Processing are found in IRM 1.2.1, Servicewide Policy Statements.

Responsibilities

  1. The Director, SP Office monitors operational performance for the Submission Processing campus.

  2. The Operations Manager monitors operational performance for their operation.

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

  4. The team employees follow the instructions found 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 3.11.3-15 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 and Job Aid 2431-010, Coding & Editing Individual Income Tax Returns - Prior Year Job Aid, were developed as reference guides for this manual. This manual refers the tax examiner to clarifying information or exhibits in the Job Aid, where needed. 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. Occasionally, multiple Form 1040, Form 1040-A, Form 1040-EZ and/or Form 1040-X are attached. For example:

    • Two or more returns from the same taxpayer are mailed in the same envelope.

    • Two or more family members' returns are mailed by the tax preparer in the same envelope.

    • Two or more unrelated returns are mailed by the tax preparer in the same envelope.

      Note:

      Detach the returns leaving an action trail on each document, then sort, work or route the returns as required.

      Exception:

      Do not separate returns that are identified as Dual Status, Streamline, Relief for Certain Former Citizens or Forms 1045.

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

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

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

  6. 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 proper channels for executive approval.

  7. 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 programs listed below:

    Program Code Description
    4311X Other-than-full-paid Forms 1040
    4312X Other-than-full-paid Forms 1040-SR
    4381X Other-than-full-paid Forms 1040(SP)
    4391X Other-than-full-paid Forms 1040-SR(SP)
    43210 Full-paid Forms 1040
    43220 Full-paid Forms 1040-SR
    43820 Full-paid Forms 1040(SP)
    43920 Full-paid Forms 1040-SR(SP)

    Note:

    Program Code 43115 has been identified for use for conversions of prior year Forms 1040A and 1040EZ.

  2. Austin also works ITIN program 4317X (Forms 1040).

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 a numbered block.

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

  3. A numbered return found in an unnumbered batch will be pulled for Work Leader. The Work Leader will research for TC 150:

    1. No TC 150 found, delete DLN, continue processing.

    2. TC 150 posted, no Form 3893 attached, route to 1040-X.

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, 2025, is Julian date 105, which is the 105th day of 2025.

  3. The twelfth and thirteenth digits of the DLN are the serial number. See Figure 3.11.3-9 for an example of a DLN.

    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 instructions in this manual are for Form 1040, Form 1040-SR, Form 1040(SP), 1040-SR(SP), Form 1040A and Form 1040EZ.

  2. The line numbers are identical on Form 1040, Form 1040-SR, Form 1040(SP), and Form 1040-SR(SP). All instructions for Form 1040 apply equally to each form. Form 1040A and Form 1040EZ will be converted to Form 1040.

  3. 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 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. Compute and edit a T-Compute Line when it is blank and there are entries leading to a significant 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. (See Figure 3.11.3-1b.) Dummying of schedules may be required.

  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. Do not math verify when dummying Forms or Schedules.

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

    Figure 3.11.3-1

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    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 01 through 79. 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 many 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) (TY19 and prior)
    - Form 8829 (Seq. 66) (TY09 and prior)
    - Form 8862 (Seq. 43A)
    - Form 8949 (Seq. 12A) (TY18 and prior)
    - Schedule D-1 (Seq. 12A) (TY10 and prior)
    - Form 8995-A Schedule A (Seq. 55B)
    - Form 8995-A Schedule B (Seq. 55C)
    - Form 8995-A Schedule D (Seq. 55E)

  5. "X" a transcribed schedule or form if it is blank or has no significant T-line entries as specified in line by line instructions, 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 2024 - 2018 Form 1040 (pages 1, 2 or 3 of 1040-SR) or 2017 and prior Form 1040 or 1040A, fold or delete them. If a form or schedule is found with significant T-line entries, move it from between pages 1 and 2 (and 3 for Form 1040-SR).

  7. For transcribed forms or schedules with multiple pages, ensure the pages 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 3 in sequential order behind Form 1040. If a non-transcribable form or schedule is found between Schedules 1 through 3, fold or delete them. If a form or schedule is found with significant T-line entries, move it from between Schedules 1 through 3.

    Exception:

    When a transcribed form or schedule is found on the back side of Form 1040, it is not necessary to photocopy and move behind Schedules 1-3.

  10. Leave Forms W-2 and 1099, Form 1040-V, taxpayer statements, deposit slips, and other small items where found when they do not obstruct T-lines or any part of the caption area. If forms W-2/1099 etc. are a full page form, move or delete them.

    Note:

    It is not necessary to move item if only T-line obstructed is for RPCs unless a staple is obstructing. Move item if the staple placement will interfere with the DLN numbering of the document (i.e., upper right hand corner).

  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 A 07
    Schedule B 08
    Schedule C (C-EZ TY18 and prior) 09, 10, 11
    Schedule D 12
    Form 8949 (TY19 and later) 12A
    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 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 8995 (TY19 and later) 55
    Form 8995-A (TY19 and later) 55A
    Form 8995-A, Schedule C (TY20 and later) 55D
    Form 8888 56
    Form 8978 (TY19 and later) 57
    Form 5405 58, 59
    Form 8919 61, 62
    Form 8958 63
    Form 461 (TY21 and later) 64
    Form 8941 65, 66
    Form 6252 (TY19 and later) 67
    Form 8910 68
    Form 8936 69
    Form 8936, Schedule A 69A
    Form 8867 70
    Form 8959 71
    Form 8960 72
    Form 8962 73, 74
    Form 5695 75
    Form 965-A (TY19 and later) 76
    Form 9000 (TY21 and later) 77
    Schedule LEP (TY19 and later) 77A
    Form 8997 (TY21 and later) 78
    Form 4136 79
    Form 8938 938

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 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 3.11.3.3.7.7.

    Line 6, Late filing code

    Returns will be received from Examination or Collection with penalty and interest amounts entered. These amounts will be edited on the return, or the Form 3471 will have been edited and attached by Exam or Collections.

    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 correct 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 correct campus.
    Not leaving the campus, Pull the document for routing to the correct 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 1040-X" or "detached taxpayer correspondence" must be made on the return.

  4. The Action Trail is written on return or document in the lower-left margin of page 1. Refer to Job Aid 2431-009 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 needed.

  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).

    Note:

    Economic Impact Payment (EIP) Prepaid Debit Cards are considered discovered remittance and will be hand carried to the manager or work leader.

  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 has 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. 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).

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

    • Received date.

    • Tax period in "YYMM" format.

    • Form from which detached.

    • Taxpayer's name(s).

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

    • Taxpayer's address.

    See Figure 3.11.3-3.

    Note:

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

    Exception:

    Detach and process any remittance. Do not mail a remittance back 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 correct box on Form 14219 to Identify the returned item.

    Figure 3.11.3-3

    This is an Image: 33440003.gif

    Please click here for the text description of the image.

Processing Codes

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

    • Action Code

    • Audit Code

    • Computer Condition Code (CCC)

    • Form Processing Code (FPC)

    • Return Processing Code (RPC)

    • Special Processing Code (SPC)

    • Unallowable Code (UAC)

  2. Processing codes will 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 will vary by return type.

  5. When other functions have edited CCCs, FPC, 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 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 as follows:

    1. Form 1040: edit in the center bottom margin directly below Form 1040, page 1.

    2. TY17 and prior: edit in the center bottom margin on page 1 of Form 1040A, and 1040EZ.

  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 as follows:

    1. Form 1040: edit horizontally in the right bottom margin directly below Form 1040, page 1.

    2. TY17 and prior: horizontally in the right-bottom margin on page 1 of 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 blank area to the right of "Spouse itemizes on a separate return or you were a dual-status alien" .

    Note:

    For prior year editing location, see Job Aid 2431-010.

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

Form Processing Code (FPC)
  1. A Form Processing Code (FPC) is an alpha or numeric character used to alert the downstream users that a specific non-transcribed form is attached to the return.

  2. Edit FPCs vertically in the margin to the right of Form 1040, line 7 or Form 1040-SR, line 4b (For prior year editing location, see Job Aid 2431-010).

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

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 RPCs horizontally in the left bottom margin directly below Form 1040.

  3. Refer to the table in Exhibit 3.11.3-6 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. Edit SPCs vertically in the right margin next to the spouse’s social security number.

  3. Refer to the table in Exhibit 3.11.3-7 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 3.11.3-8 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 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 3.11.3-4.)

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

    Note:

    A double-ended arrow or "underline with arrow" will be used to edit a dollar amount to one additional T-line. (See Figure 3.11.3-4.)

    Figure 3.11.3-4

    This is an Image: 33440004.gif

    Please click here for the text description of the image.

"X" -ing
  1. An "X" will 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 above or to the left of the "X" -ed entry.

    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.

Bracketing
  1. Use brackets to indicate a negative dollar amount when editing.

    Note:

    Bracketing (as it relates to dollar amounts) is necessary only when the tax examiner is computing or editing 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 RIVO) 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 such as those received from CII/AM).

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. For TY18 and prior only, 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. When computing and editing an entry as directed in line-by-line instructions.

      Exception:

      It is not necessary to edit "00" to indicate no cents.

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

    • Form 1040 - lines 24 through 38

    • Schedule 3, lines 9 through 14

    • Form 6001

    • 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 identified in the line-by-line IRM instructions.

    Exception:

    Except for Form 1116, Form 8283, Schedule 8812, and Schedule EIC; only correspond for these forms when the tolerance in the line-by-line IRM instruction is met.

  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 correct "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 has signed in the wrong area and arrowed their own signature to the right place.

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

    • The tax return is for TY14 and prior. (See IRM 3.11.3.73.3.)

      Exception:

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

    • The return has a notation indicating the return is a "dummy" return. Notations may include "Substitute for Return Prepared by IRS" , "Section 6020b" , or "prompt assessment" .

    • 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 more instructions.

    • An Examination case is indicated. See the instructions in IRM 3.11.3.6.1.5 for more instructions and a list of the attachments and notations by which an Examination case will 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(3).)

  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.

  5. Except for returns coming from Collection and Correspondence Imaging Inventory (CII), 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 is missing page 1 or page 2 (Form 1040-SR, page 1, 2, or 3) pull for research.

    Note:

    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 3.11.3.6.2.15.)

    • Early filed loose Schedule H for tax year 2025. Use Notice 1208, You Filed Schedule H (Household Employment Taxes) Too Early

    • Current year Loose Schedule H (received April 15, 2025 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 4883C, 5071C, 5216, 5447C, 5747C, or 6167C 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.
    Natural Disaster is noted on return or attachment.

    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 or Form 15103, 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 or Form 15103" . Do not detach CP 59 or Form 15103, 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, request all missing required information. (See Exhibit 3.11.3-17):

    Exception:

    KCSPC or 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 missing signature box "1" .

      Note:

      Also check box "27" on decedent returns, see IRM 3.11.3.10.1(4).

    3. Check all the correct 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 "Returned for Signature" (stamped or edited), Form 3531 and any issued correspondence, with the current date unless it is being returned as a misfiled return. (e.g., Return for Signature MMDDYY or Return for Signature F3531, 1, 8, 11 MMDDYY). See Figure 3.11.3-5.

      Note:

      The date will be edited or stamped following local procedures for mailing.

    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. Staple in the left margin through only the first one or two pages.

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

    Figure 3.11.3-5

    This is an Image: 33440005.gif

    Please click here for the text description of the image.

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.

    Note:

    If unable to perfect through research, do not correspond, edit the name control and follow no-reply procedures.

  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 3.11.3-16.)

    2. 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 to initiate Letter 12C using the following steps:

    1. Write legibly.

    2. Check all the applicable 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 3.11.3-18, Correspondence Fill-in Paragraphs, when paragraph e is selected.

      Note:

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

    6. When paragraphs I - N are not enough to request all missing forms and schedules, use paragraph e with fill-in paragraph "36" instead.

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

      Note:

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

  6. Attach the CAS to Form 1040 face up immediately below the caption area.

    Caution:

    When stapling the correspondence sheet to the return, ensure you are attaching only one return and staple in the left margin through only the first one or two pages.

  7. Edit Action Code "211" on all returns requiring correspondence when the return is not being mailed back to the taxpayer. (See Figure 3.11.3-6.)

    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 Form 965 is attached to return.

  8. If a received date is 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 3.11.3-6

    This is an Image: 33440006.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.

  3. When there is an indication of a possible disclosure issue, take return to work leader.

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.

      Note:

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

  3. If a no reply correspondence condition is not identified in the chart below, edit CCC"U" unless a condition in (2) above applies and take no further action.

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

  5. Refer to the following Correspondence Action Chart. All line numbers are for current year unless specified otherwise.

    Form 1040 Series Returns

    CORRESPONDENCE REQUIRED FOR THE FOLLOWING CONDITION ON FORM 1040 SERIES RETURNS ACTION REQUIRED FOR INCOMPLETE REPLY OR NO REPLY
    Dependent TIN - Dependents claimed with no TIN "X" dependent’s name.
    Signature
    • Missing or incomplete Jurat

    • Missing signature or only 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. Route undeliverable returns to the Entity Function and do not edit CCC "U" .

    2. 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 CP 59, Letter 143C or Form 15103, do not correspond for a signature under the jurat on the return. This signature is acceptable.

    3. If the return is not signed after correspondence (or second correspondence if applicable) for signature, edit Action Code "640" and edit only the caption area.

      Exception:

      If the taxpayer signed an attached CP 59, Letter 143C or Form 15103, do not correspond for a signature under the jurat on the return. This signature is acceptable.

    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 return but a completed Form 1310 with correct answers and signature is attached. e. See Signature instruction above.
    f. Signature missing on return and Form 1310 is attached, but not signed. f. See Signature instruction above.
     

    Form 1040, Pages 1 and 2

    MISSING ITEM ACTION REQUIRED FOR INCOMPLETE REPLY OR NO REPLY
    Line 7 - 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 7 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
    Line 25d - Amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and withholding document is not present. "X" the amount.
    Line 27 - Amount claimed and no source of earned income is present. Edit RPC "B" then "X" the amount.
    Line 28 - Amount claimed and Schedule 8812 not attached. "X" the amount.
    Line 29 - Amount claimed and Form 8863 not attached. "X" the amount.
     

    Schedules 1 through 3

    MISSING ITEM ACTION REQUIRED FOR INCOMPLETE REPLY OR NO REPLY
    Schedule 1 - not attached, Prepare dummy Schedule 1 from attachments if present. See IRM 3.11.3.14.2.16 and IRM 3.11.3.14.2.18.
    Schedule 1, Line 3 - Schedule C Prepare dummy Schedule C. Edit a positive amount on line 1 and 3. Edit a negative amount on line 28. Edit Audit Code "B" when the amount on Schedule 1, line 3 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
    Schedule 1, Line 4 - Form 4797, Form 4684, or statement not attached. Edit Audit Code "B" if a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is claimed.
    Schedule 1, Line 5 - 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 5 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
    Schedule 1, Line 6 - 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 6 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
    Schedule 1, Line 8b - Gambling net loss indicated, and Schedule C not attached. "X" the amount on line 9.
    Schedule 1, Line 8z - Sec. 965 noted and Form 965-A not attached. Edit RPC "F" . For TY17, also edit Action Code "300" .
    Schedule 1, Line 12 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 2106 not attached. "X" the amount.
    Schedule 1, Line 13 - Amount claimed and Form 8889 not attached. "X" the amount.
    Schedule 1, Line 14 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 3903 not attached. "X" the amount.
    Schedule 1, Line 26 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and not supported by entry on lines 11 through 25, or a statement. "X" the amount on Form 1040, Line 10.
    Schedule 2 not attached. Prepare dummy Schedule 2 from attachments if present. See IRM 3.11.3.14.2.24 and IRM 3.11.3.14.2.28.
    Schedule 2, Line 1a - Amount claimed and Form 8962 not attached. "X" the amount on line 1a.
    Schedule 2, Lines 1b and 1c - Amount claimed and Form 8936 not attached. "X" the amount on lines 1b and/or 1c.
    Schedule 2, Lines 1d, 1e, and 1f - Amount claimed and Form 4255 not attached. "X" the amount on lines 1d, 1e and/or 1f.
    Schedule 2, Line 4 - 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 $168,600 or less; otherwise, prepare a dummy Schedule SE for the secondary taxpayer. See Prior Year instructions for correct prior year amounts.
    Schedule 2, Line 5 - Amount claimed and Form 4137 not attached. "X" the amount on line 7.
    Schedule 2, Line 6 - Amount claimed and Form 8919 not attached. "X" the amount on line 7.
    Schedule 2, Line 8 - Form 5329 not attached, the box to the left of line 8 has not been checked, no indication of No on line 8, and the amount claimed is not 10% of any combination of line 4b, 5b or attached Form(s) 1099-R. Prepare a dummy Form 5329. Edit the amount from line 8 to line 17 of Form 5329. Process for the primary taxpayer if a determination cannot be made.
    Schedule 2, Line 9 - Amount claimed and Schedule H not attached. "X" the amount.
    Schedule 2, Line 11 - Amount claimed and Forms 8959 not attached, "X" the amount.
    Schedule 2, Line 12 - Amount claimed and Form 8960 not attached, "X" the amount.
    Schedule 3 not attached. Prepare dummy Schedule 3 from attachments if present. See IRM 3.11.3.14.2.26 and IRM 3.11.3.14.2.36.
    Schedule 3, Line 1 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 1116 not attached. "X" the amount.
    Schedule 3, Line 2 - Amount claimed and Form 2441 with entry on line 11, not attached. "X" the amount.
    Schedule 3, Line 3 - Amount claimed and Form 8863 not attached. "X" the amount.
    Schedule 3, Line 4 - Amount claimed and Form 8880 not attached. "X" the amount.
    Schedule 3, Line 5a - amount claimed and Form 5695 is not attached. For TY23, "X" the amount. For TY22 and prior, "X" the amount if it is ≡ ≡ ≡ ≡ ≡ ≡ ≡, or any amount if only page 2 is attached.
    Schedule 3, Line 5b - amount claimed and Form 5695 is not attached. "X" the amount.
    Schedule 3, Line 7 - amount claimed and not supported by form/schedule for lines 6a-6z. "X" the amount.
    Schedule 3, Line 11 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and either no Form W-2 is attached or not all Forms W-2 are attached. "X" the amount.
    Schedule 3, Line 12 - Any amount claimed, and Form 4136 not attached. "X" the amount.
    Schedule 3, Line 13a - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 2439 or other refundable credits are not attached. "X" the amount.
    Schedule 3, Line 13c - and Form 3800 not attached. "X" the amount.
     

    Supporting Forms and Schedules

    SUPPORTING FORMS AND SCHEDULES ACTION REQUIRED FOR INCOMPLETE REPLY OR NO REPLY
    Schedule A  
    a. Line 7 -- Amount present, no entries on lines 5a through 6. a. "X" the amount.
    b. Line 10 - Amount present, no entries on lines 8a through 9, and line 5b is blank. b. "X" the amount.
    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. "X" the amount.
    d. Line 14 -- Amount present, no entries on lines 11 through 13. d. "X" the amount.
    e. Line 15 - Amount present and Form 4684 not attached. e. "X" the amount.
    Schedule B - Amount on line 3 and Form 8815 not attached. Adjust line 2b 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. Adjust line 28, Schedule C, to equal line 7, Schedule C.
    Schedule E - Lines 28A through 28D - Loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ indicated in column (g) or (i), corresponding column (f) 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. 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.

    "X" Schedule R.
    Schedule SE - Cannot determine the proper allocation of SE amounts. Process Schedule SE for the primary taxpayer if primary wages are $168,600 or less. Otherwise, process Schedule SE for the secondary taxpayer.
    Form 2441  
    a. Line 1, Column (c) is blank. a. "X" line 3, Form 2441.
    b. Line 2, Column (b) is blank. b. "X" qualifying person’s name.
    Form 3800 (Part III and Part IV) - Any entries present in Part III and Part IV, must be supported by the source form or show an EIN in Part III or Part IV. "X" any credits claimed in Part III or IV not supported by the correct source form or without an EIN in Column d, Part III or IV.
    Form 4137 - Cannot determine correct allocation. Process Form 4137 for the primary taxpayer if primary wages are $168,600 or less. Otherwise, process Form 4137 for the secondary taxpayer.
    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. 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.

    "X" the child's name.
    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. Process Schedule H with a dummied Form 1040. (See IRM 3.11.3.44.15.)
    Form 8919 - Unable to determine which taxpayer is filing Form 8919. Process Form 8919 for the primary taxpayer if primary wages are $168,600 or less. Otherwise, process Form 8919 for the secondary taxpayer.
     

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 (TAS)

    • Examination Cases

    • Frivolous Filer/Non-Filer returns

    • Identity Theft

    • Suicide Threats

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

    • Amended Returns

    • Blank Returns

    • Blind Trust Returns

    • Blocked or Deferrable Income Returns

    • Correspondence Imaging Inventory (CII) Returns

    • Combined Tax Liabilities

    • Community Property Returns

    • Form 8938, Statement of Foreign Financial Assets

    • Incomplete Returns

    • Injured Spouse Returns

    • Innocent Spouse Returns

    • International 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 1a Form 1040 and withholding is significant on line 25a-25d and line 35a, Form 1040 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." Take no action if not attached.

    "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 CII/AM and notate KITA in the Action Trail.

    Note:

    Hand-carry KITA returns to the Work Leader unless batched 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 CII/AM and notate KITA in the Action Trail.

  3. Prior year Form 1040A or 1040EZ with "Sec 692(d)(2)" written anywhere on the return must be converted to a Form 1040 before sending the return to CII/AM.

Natural Disaster/Emergency Relief Program
  1. The taxpayer may identify the name of a disaster or emergency on the front of their return, on an attachment, or may notate "Federally Declared Disaster" .

  2. If taxpayer notates “East Palestine Train Derailment Relief” or similar statement on the front of the return or on an attachment, edit SPC "5" .

  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. Do not send the return back to the taxpayer.

    Exception:

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

Hardship (Taxpayer Advocate Service (TAS))
  1. The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see https://www.irs.gov/taxpayer-bill-of-rights.

  2. 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.

  3. 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.

  4. The work leader will determine if hardship criteria has been met and if so, complete the Form 911 (using Form instructions), if not already attached. Route Form 911 to TAS and continue processing the return.

  5. 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.

  6. When local Taxpayer Advocate walks a return through Code and Edit, 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 3.11.3-14.)

  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 3.11.3-13.)

  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 3.11.3-13 for more 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 1-308" .

    • 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 8d, Schedule 1, to eliminate income even though taxpayer and employer are U.S. residents.

      Note:

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

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, give the correspondence to the manager/lead who will take the following actions:

    Step Action
    a) Prepare a Form 13090, Caution Indicator Referral Report, ensuring the form has:
    • The facts necessary to explain the incident, describing the exact words used by the taxpayer.

    • The taxpayer’s Social Security number.

    b) Provide a completed Form 13090 to their immediate manager.
    c) Submit the Form 13090 to the OEP via fax, mail or a secure E-mail message:
    • Secure e-mail to: ChiefOEP@irs.gov.

    • e-Fax @ (855)786-9490.

    • Regular mail:
      Internal Revenue Service
      Office of Employee Protection
      P.O. Box 330500 Stop 30
      Detroit, MI 48226

  2. See IRM 25.4, Employee Protection, for more 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.

    • Form 15103 attached with box "I already filed my tax return for" marked with the same year as the return.

    • 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" is present.

  2. The work leader or other trained employee 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 1040-X 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 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 per classified waste procedures.

Blank Return
  1. Edit RPC "L" and CCC "B" on returns with all zeros or no significant T-line entries present, or edited from attachments, on any of lines 1a through 38.

    Reminder:

    Correspond for a missing signature on a blank return using Form 3531, box 9.

  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. Route the return to 1040-X.

  4. Edit CCC "E" when a statement indicates the taxpayer will have no future filing requirements (such as "final return" noted).

  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 3.11.3.6.2.19 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 9.

Incomplete Return
  1. If a Form 1040 or TY17 and prior Form 1040A is missing page 1 or page 2, or Form 1040-SR, missing pages 1, 2, or 3, research as necessary.

  2. Follow instructions below for research:

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

    2. If no TC150 has posted and not in ERS, dummy page 1 caption area if necessary, prepare return for correspondence and request all missing information. Research for an address, if necessary.

    3. If unable to correspond, destroy the page per classified waste procedures.

Uncomputed Return
  1. An uncomputed return is one filed by a taxpayer expecting the IRS to figure their 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 when Form 1040 has no entries on lines 16, 17, 18, 22, 24, 34, 35a, 36 and 37. (See Figure 3.11.3-7.)

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

  4. 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 are claimed in positions 1 through 6, or an allocation of dependents is indicated.

    Figure 3.11.3-7

    This is an Image: 33440007.gif

    Please click here for the text description of the image.

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

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

    Note:

    Blocked or deferrable income is not an indication of an international return.

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

    1. The work leader or other trained employee 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 Deferrable 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 Inventory (CII) Returns
  1. CII returns are identified by a unique 10 character alpha numeric identifier that begins with the letters CII (e.g., CII1A2BCD1).

    Note:

    You may find returns identified as "CIS" returns or "CIS" stamps on the returns, follow instructions for editing "CII" returns when CIS is noted.

  2. Process CII 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 CII returns when editing is underlined in red.

  4. Do not correspond for a missing signature. Do not correspond or research for any missing required information. l

    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, with a spouse or RDP SSN listed in column B or C with a significant amount in that column. or allocation statement, edit Action Code "430" . IRM 3.11.3.56

  2. "X" any fractional exemption claimed.

  3. "X" the amount claimed for Excess Social Security taxes when wages are less than $84,300.

    Note:

    The maximum amount of earnings subject to Social Security tax is $168,600. Half of that equals $84,300.

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

    1. A S-TIN is present.

    2. Lines 1a-7 Form 1040 and lines 1-10 and 11-26 Schedule 1 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)
    1. Process Form 1040 using current coding instructions, including the editing of FPC "G" .

    2. 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.

    1. Fully code Form 1040, including the editing of FPC "G" .

    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 23 in Part V; or highest value, line 32 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 TY21 and prior Forms 1040 or Forms 8938, do not pull, edit FPC "G" and continue processing.

    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 their 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 will 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 1040-X is attached to a return with an Injured Spouse indication, take the following actions:

    1. "X" the Form 1040-X and do not detach the Form 1040-X 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:
      • They 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 they 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 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 Campus Support Operation (CSO) only. When the taxpayer either attaches correspondence to the return that identifies them 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
    CSO (Campus Support Operation)
    Stop #840F
    7940 Kentucky Drive
    Florence, KY 41042

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 1040-NR, U.S. Nonresident Alien Income Tax Return

    • Form 1040-NR-EZ, U.S. Income Tax Returns for Certain Nonresident Aliens With No Dependents (TY19 and prior)

    • Form 1040-PR, Declaración de Impuestos Federal sobre el Trabajo por Cuenta Propia (Incluyendo el Crédito Tributario Adicional por Hijos para Residentes Bona Fide de Puerto Rico)

    • Form 1040-SS (sp), Declaración de Impuestos 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 or notation of Form 1042-S anywhere on the return

    • Form 2555, Foreign Earned Income or notation of Form 2555 or Housing Deduction anywhere on the return

    • Form 2555-EZ, Foreign Earned Income Exclusion (obsolete 2019 and later).

    • 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 or notation of Form 8288-A anywhere on the return

    • Form 8689, Allocation of Individual Income Tax to the U.S. Virgin Islands or notation of Form 8689 anywhere on the return

    • Form 8804, Annual Return for Partnership Withholding Tax Under Section 1446

    • Form 8805, Statement of Withholding under Section 1446 or notation of Form 8805 anywhere on the return

    • 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 1040-NR 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 1040-NR or Form 1040-NR-EZ for the same taxpayer together.

    • Nonresident Alien (NRA) -- Primary or both taxpayers are nonresident NRA(s)

      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.

    • Notation of "Relief for Certain Former Citizens" , Relief, Expat, FAQ 24, FAQ 25, or something similar is written on the return and/or any attachments.

    • Copy of Certificate of Loss of Nationality (CLN) is attached.

    • Taxpayer specifically mentions "Relief" , "Former Citizen" , "Expatriate process" , "FAQ 24" , "FAQ 25" , or something similar in an attached letter.

      Caution:

      If none of the international conditions listed above are present, consider it a domestic return and continue processing.

  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 (Usually reported on line 1a, Form 1040), FEC noted on line 1a, 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 6054 AUSC
    P.O. Box 934
    Austin, TX 78767

    For Private Delivery Service (PDS) Mailing:
    Internal Revenue Service
    Mail Stop 6054 AUSC
    3651 S IH 35
    Austin, TX 78741

    Exception:

    Immediately forward returns that have any of the following characteristics and do not have an LB&I stamp indicating that LB&I has already reviewed it to AUSPC LB&I at the address below:
    "Relief for Certain Former Citizens" , "Relief" , "Expat" , "FAQ 24" , "FAQ 25" , or something similar is written on the return and/or any attachments.
    Form 8854 is attached.
    Copy of Certificate of Loss of Nationality (CLN) is attached.
    Taxpayer specifically mentions "Relief" , "Former Citizen" , "Expatriate process" , "FAQ 24" , "FAQ 25" , or something similar in an attached letter.
    Form 8898 is attached.

    Internal Revenue Service
    Mail Stop 4301 AUSC
    3651 S IH 35
    Austin, TX 78741

    For Private Delivery Service (PDS) Mailing:
    Internal Revenue Service
    Mail Stop 4301 AUSC
    3651 S IH 35
    Austin, TX 78741

    Austin route to MS 4301 AUSC.

  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 3.11.3-8.)

      Exception:

      AUSPC only: Edit Action Code "610" .

    2. Stop editing.

    Figure 3.11.3-8

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    Please click here for the text description of the image.

Misblocked Return
  1. 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 1040 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 1040A or Form 1040EZ is found in a Form 1040 block, Convert entries to Form 1040 format and continue editing.
    If a prior year return is found in a current year block, Process the return using the prior year instructions in IRM 3.11.3.73.
    Form not in the 1040 series is found in a Form 1040 block, Refer the return to your work leader.

Misfiled Return
  1. A misfiled return is a Form 1040 series return that 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.

  2. Route a return 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 a misfiled return back to the taxpayer with box 10 checked on Form 3531.

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 3.11.3-9.)

    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 will 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 3.11.3-9

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  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. 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.

  5. 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, on secured returns.

    Exception:

    TC59X-18 is not an indication of a secured return.

  2. Do not research for TC150 on Secured Returns

  3. 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.

  4. Do not correspond for missing signature if Process as Original is present on the return.

  5. 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.

  6. Refer to the Examination case information in IRM 3.11.3.6.1.5 for instructions on returns secured by Examination.

  7. 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 3.11.3-18.

    2. Edit Action Code "211" when using Form 6001.

  3. 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.

  4. 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.

  5. Edit the SE Quarters Covered Code in the margin to the right of line 4c 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 lines 1a through 38.

  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 2412.

    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 2412.

    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 at the addresses shown below.

    • AUSPC, 3651 South IH 35, Stop 5501, Austin, TX 78741

    • Fresno Campus Support, Stop 81105, 3211 S. Northpointe Dr., Fresno, CA 93725

    Note:

    AUSPC 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.

    Reminder:

    Route to Statute for clearance prior to processing if required.

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. Tax periods reported under the 52-53 week rule may end no more than 6 days before, and no more than three days after, the end of a month. In the edit format, use the numeric designation of the month, the last day of which is closest to the actual ending date.

    Note:

    When editing, use the last day of the month which is closest to the ending date. If the tax year ends within the first three days of the month, use the previous month in the tax period. If the tax year ends within six days of the end of the month, use that month in the tax period.

    Example:

    If the ending date is September 3, 2024, use the numeric designation for August (2408). If the ending date is October 28, 2024, use the numeric designation for October (2410).

  3. If the tax period is missing, illegible, invalid, or is longer than one year, assume the tax period to be the current calendar year if it makes the form timely.

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 3.28.3.6.

  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., 2412) 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., "2503" ). (See Figure 3.11.3-10.)

  4. Current year returns are defined as a Form 1040 and the tax period can’t end earlier than 2412 (December 2024) or later than current year and month.

    Figure 3.11.3-10

    This is an Image: 33440010.gif

    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 or follow local procedures.

  2. The work leader will:

    • Convert to a current year by dummying a current year Form 1040

    • Include any Schedules 1 - 3 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 or illegible.

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. See Figure 3.11.3-10.

    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 series return filed for a tax year prior to the current processing year.

  2. Refer to IRM 3.11.3.73 for prior year editing instructions.

  3. Refer to IRM 3.11.3.73.2 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 unless trained.

  5. The work leader will:

    • Convert to a prior year Form 1040.

    • Refer to the line-by-line instructions for prior year editing in IRM 3.11.3.73 for more 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 required on all returns.

  2. If missing edit the received date on the front of the return in the empty space to the right of "Dependents (see instructions)"

    Note:

    For prior year returns refer to Job Aid 2431-010 for editing location.

  3. Edit the received date in "MMDDYY" format when not already present. MMDDYY format is Month Month Day Day Year Year. For example, April 23, 2025, when edited in MMDDYY format is "042325" .

  4. Perfect the received date when it is not legible or is incomplete. When perfecting, edit in the MMDDYY format.

  5. If a received date is present in or above the caption area, delete and edit the same received date as instructed in (2) above. If page 1 of the return does not have a received date, search the return and attachments for a received date and edit that date as instructed above.

  6. Circle a received date that has been X-ed or deleted in another manner. If a valid received date is not present, edit the correct received date in MMDDYY format.

  7. 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; Taxpayer Advocate Service (TAS) received dates are not valid received dates. If multiple received dates are identical and in the correct 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).

  8. If a return has been faxed to another area of the IRS 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 when one is not present.

    Caution:

    The EEFax Date cannot legally be used as the IRS Received Date.

    Figure 3.11.3-11

    This is an Image: 33440011.gif

    Please click here for the text description of the image.

Determining the Received Dates

  1. When there is no valid received date stamp or handwritten received date, determine the received date in the following priority:

    1. Latest postmark on the envelope, the postmark date stamped or handwritten on the return or latest date from a private delivery service mark. (See Figure 3.11.3-12)

      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 3.11.3-12)

      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 3.11.3.6.2.16 when determining the received date for a reinput return.

  2. If the stamped received date 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. (See Figure 3.11.3-13.)

      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 041525.

    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 return for signature date, circle out the latest received date and edit the earlier received date.

    Figure 3.11.3-12

    This is an Image: 33440012.gif

    Please click here for the text description of the image.

    Figure 3.11.3-13

    This is an Image: 33440013.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 or handwritten date 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 with the word received.

      Note:

      The city and functional area within the site (CSCO, Exam, ICT, CII, AM, for instance) may 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 RIVO is valid. A clear indication that a handwritten or typed received date has been edited by RIVO will be the presence of SPC "B" , "M" and/or "RIVO" noted or stamped in the upper left margin. Generally, the RIVO-edited received date will be earlier than the original, stamped received date.

  2. Accept a received date on an IRS Received Date Label (Form 14471) above the caption.

    Note:

    Delete and edit the same received date as instructed in IRM 3.11.3.8.1.

  3. 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 3.11.3-14.)

    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 3.11.3-14

    This is an Image: 33440014.gif

    Please click here for the text description of the image.

Timely Filed Returns

  1. For 2025, a current-year return is a return filed for tax year 2024. A current calendar-year return (2412) is timely filed when it is mailed on or before the due date of April 15, 2025.

  2. All returns - always requires a received date.

Grace Period

  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. If penalties or interest are indicated by Examination or Collection and the return is part- or full-paid, ensure received date is present and prepare Form 3471. See IRM 3.11.3.3.4.1 for more 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 (2412) return ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡" or later), examine the envelope or the postmark date stamped or handwritten on the return and:

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

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

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

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

    "≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

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

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡

    Exception:

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

    "≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

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

  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, 2025.

  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, 2025, 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 IRS that the electronic portion of the return has been rejected or cannot be accepted for processing. (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 3.11.3-9 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 3.11.3-9.)

  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 3.11.3-15.)

  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 3.11.3-15

    This is an Image: 33440015.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 3.11.3-16.)

    Exception:

    See IRM 3.11.3.9.2.3 for instructions for perfecting a mailing address.

    Figure 3.11.3-16

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    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 3.11.3-17):

    1. Edit (or underline, if present) the name control in the caption area.

      Exception:

      Do not underline the name control when only the TIN 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 3.11.3-17

    This is an Image: 33440017.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 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 may be added to the additional information line. Edit and underline the correct 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
    Kansas City 09 39
    Ogden 29 04

    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. If an ITIN or IRSN is newly assigned (edited in red), any other TIN for the same person is invalid and will 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 return:

    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 their 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 3, 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" , or "5" .

  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" or "3" . 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 their 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 3, or Form 6001, check box B.

  5. Edit CCC "J" when the S-TIN is missing, the filing status is 2 or 3 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 3.11.3-18.)

    Figure 3.11.3-18

    This is an Image: 33440018.gif

    Please click here for the text description of the image.

  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 3.11.3-19.)
    Uses a middle initial and no first name,* Edit the name for the middle initial, if present. (See Figure 3.11.3-19.)
    Writes their last name first, Edit it to appear last. (See Figure 3.11.3-20.)
    Enters their 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 3.11.3-19

    This is an Image: 33440019.gif

    Please click here for the text description of the image.

    Figure 3.11.3-20

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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 3.11.3-21), 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 3.11.3-22.)

    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 or %) 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 3.11.3-23.)

      Note:

      If a university and a building name are present, underline both as the AIL.

    Note:

    When editing Prisoner returns with a Prisoner ID number present on return or attachments, edit the Prisoner ID number as the AIL. When both the Prisoner ID number and another AIL are present, underline the Prisoner ID number and delete any other AIL information. Do not underline the pound sign or other symbols preceding the number.

  4. Delete any condition or notation not found in (3) above.

    Figure 3.11.3-21

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    Figure 3.11.3-22

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    Figure 3.11.3-23

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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 Apple Ave) or P.O. Box present in the caption. (See Figure 3.11.3-17 and Figure 3.11.3-24.)

    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 3.11.3-24.)

  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 3.11.3-25.)

  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 3.11.3.9.2.6.

    Exception:

    If correspondence is required and you are unable to perfect from an attached envelope, research for the address. If unable to locate address through research, underline the name control and follow no-reply procedures if correspondence is required.

  6. Refer to the international return instructions in IRM 3.11.3.6.2.13 when the return has a foreign address in the caption area or on TY18 Schedule 6.

    Exception:

    If both a domestic and foreign address are present, circle out the foreign address.

    Figure 3.11.3-24

    This is an Image: 33440024.gif

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    Figure 3.11.3-25

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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 3.11.3-26.)

  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 3.11.3-26

    This is an Image: 33440026.gif

    Please click here for the text description of the image.

Multiple Addresses
  1. Use the permanent address when more than one address is indicated, and one is permanent, and one is temporary. (See Figure 3.11.3-27.)

    Exception:

    When the taxpayer self-identifies as a victim of a natural disaster and requests that a refund be sent to a temporary address, edit Action Code "341" .

    Figure 3.11.3-27

    This is an Image: 33440027.gif

    Please click here for the text description of the image.

    Note:

    Refer temporary foreign addresses to your work leader for possible manual refund.

  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 3.11.3-28.)
    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 3.11.3-29.)
    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 3.11.3-28

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    Figure 3.11.3-29

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  3. For addresses having a rural route or route number with a box number, and a street address: (See Figure 3.11.3-30.)

    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 3.11.3-30

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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 3.11.3-31.)

    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 3.11.3-31

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City
  1. The city must be present. If missing, search the return and other attachments.

    If the missing information is Then
    Found, Perfect the city line.

    Exception:

    Do not perfect city 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. 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.

State
  1. The state must be present. If missing, search the return and other attachments.

    If the missing information is Then
    Found Perfect the state.

    Exception:

    Do not perfect state information if the street address is not present on the return.

    Not found, Underline or edit the name control.

  2. Use the standard abbreviations when editing the state. Refer to Exhibit 3.11.3-10 for a list of the standard state abbreviations.

  3. 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 will be five or more digits. Take no action when there are more than five digits.

  2. Search return or attachments if the ZIP code is missing or incomplete, take one of the following actions:

    1. Perfect the ZIP code if a complete ZIP code is found for exactly the same address (including apartment number, if present). (See Figure 3.11.3-32.)

    2. Perfect the ZIP code using the chart in Exhibit 3.11.3-10 when a complete ZIP code is not found.

    Figure 3.11.3-32

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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 3.11.3-33):

    • The correct two-letter state code, and

    • The corresponding unique five-digit ZIP code

    Figure 3.11.3-33

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  2. Circle a city name or a foreign city or country if present and edit the correct state/ZIP code based on the table in paragraph (4) below.

  3. When missing or incomplete, edit the ZIP code from the table in paragraph (4) below that applies to the state code.

  4. Refer to the following APO/FPO address conversion tables:

    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
    If the Foreign City or Country is in: State Code and ZIP
    Central America, South America or Caribbean AA 34001
    Europe, Middle East, Africa or Canada AE 09001
    Asia or the Pacific 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 the return

    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"

    7. Signed by Fiduciary, Personal Representative or, Executor

  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 Form 1310 if documentary evidence is satisfied or not required. If Form 1310 is not present, edit the information from the court certificate.

    Note:

    If the Form 1310 is the required documentary evidence, it must be complete and signed. (See Figure 3.11.3-34.)

    Figure 3.11.3-34

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  2. When corresponding for signature and/or documentary evidence when no living taxpayers are present on the return:

    • When using Form 3531, edit "Estate of" to the left of the name in the caption area.

    • When using Form 6001, check the "Estate of" box.

  3. 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.

  4. 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.

  5. If the signature is missing on a decedent return, correspond using Form 3531, check box 1 and 27. 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.

  6. Decedent returns require a date of death. Correspond when the date of death cannot be determined through research. For Form 3531, check box 24, 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.

  7. If a single taxpayer, or both taxpayers on a joint return, died before the tax period on the return, refer the return to your work leader.

    Note:

    These procedures also apply with a notation of "Estate of" or "Trust" in the caption when an SSN is present.

  8. 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 Rejects.

      Note:

      Correspond on returns with no signature prior to transshipping or routing.

    3. Verify Total Income is more than $600.00. If $600.00 or less do not transship to BMF Rejects. Continue processing return.

    4. For a numbered return, insert a replacement page and edit the following information:
      • DLN in the upper-right margin.
      • Action Code "640" .
      • Action Trail, "Return transshipped to BMF Rejects unit" .

    5. Pull the return from the batch and route to Receipt and Control, Media Transport Unit for transshipment to a BMF SPC.

    Exception:

    KCSPC and OSPC, do not transship the return. Route the return, using Form 4227 or local procedures, to your site’s BMF Rejects unit to renumber and process the return.

  9. 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.

  10. 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 26.
      - If using Form 6001, use fill-in 25, per Exhibit 3.11.3-18.

    One name in the name line, FS box 5 (Qualifying Surviving Spouse) is marked, Correspond, if the spouse's name cannot be found.
    - If using Form 3531, check box 26.
    - If using Form 6001, use fill-in 25, per Exhibit 3.11.3-18.
    Two names in the name line,   Edit the FS as "2" (Married filing jointly). (See Figure 3.11.3-35.)

    Figure 3.11.3-35

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  11. 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 using Form 3531. 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 3.11.3-36.)

    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 3.11.3-36.)

    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 3.11.3-36

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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 3.11.3-38.)*

    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 3.11.3-39.) See IRM 3.11.3.12.2.2 (1) for possible filing status editing.

    Figure 3.11.3-37

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    Figure 3.11.3-38

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    Figure 3.11.3-39

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Documentary Evidence on a Decedent Return

  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.

    Note:

    A beneficiary is not a court appointed representative.

    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. See IRM 3.11.3.73.3.1 for further information.

    Figure 3.11.3-40

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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 both deceased taxpayers, (i.e., a separate Form 1310 for each spouse).
    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). When corresponding with Form 6001 use paragraph g/r.

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡

    Figure 3.11.3-41

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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 28.

  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 3.11.3-42.)

    3. Part II, question 3 must be answered "Yes" unless a court certificate is attached. (See Figure 3.11.3-43.) 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 3.11.3-42

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    Figure 3.11.3-43

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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 3.11.3-44.) 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 25 and for Form 6001, fill in 3, per IRM Exhibit 3.11.3-18.

    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 3.11.3-44):

    • 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 3.11.3-44

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Computer Condition Codes for Decedent Returns

  1. 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 for documentary evidence.

  2. 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 3.11.3-46.)

    2. Edit CCC "9" if only the secondary taxpayer died during the tax period. (See Figure 3.11.3-46.)

    3. Edit CCC "A" if both taxpayers died during the tax period. (See Figure 3.11.3-46.)

    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.)

    Figure 3.11.3-45

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    Figure 3.11.3-46

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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 (2024), a short period return may be filed. In addition to regular editing, edit the following (see Figure 3.11.3-47):

    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

    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.

    Figure 3.11.3-47

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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 more 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 f/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 3.11.3-48.)

  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 3.11.3-48 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 3.11.3-48

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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 IRS. 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 f/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 their tax.

  2. The instructions in this manual subsection are for determining and editing the correct FS.

Filing Status, General Instructions

  1. Edit the FS by either checking the correct box or by editing the FS Code in the white space under the Filing status heading.

  2. TY17 and prior, Form 1040 and Form 1040A, edit the FS by either checking the correct 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 Surviving Spouse

    • FS "6" - married taxpayer filing a separate return (spouse exemption is claimed)

  4. Edit CCC "Q" when the filing status is 4 or 5, there are no dependents listed on the return and a qualifying non-dependent is listed:

    • On Schedule EIC with SSN of a Qualifying Non-Dependent

    • On Form 2441 with SSN of a Qualifying Non-Dependent, or

    • On Form 8814 with SSN of a Qualifying Non-Dependent

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 3.11.3.13.1 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, A spouse is listed as a dependent, Edit FS "6" and
    do not code as a dependent.
    Is one name in the caption and one signature A spouse’s name is entered in the Filing Status area, 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 3.11.3-49.)

    If FS boxes 1 and 4 are both marked and Then
    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. Circle FS 1 box. (See Figure 3.11.3-49.)
    • A name or "see attached" is noted on line next to Qualifying Surviving Spouse or Schedule EIC, Form 2441, or Form 8814 with a qualifying child is attached,

    • AND no dependents are edited in positions 1, 3, 4, or 5.

    Circle FS 1 and edit CCC "Q" .
    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.

    Figure 3.11.3-49

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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
    A spouse is claimed as a Dependent, Circle FS 1 box and edit FS 6. Do not code the spouse as a Dependent and edit an X to the left of the spouse's name on the Dependent line.
    A spouse's date of death is within the tax period of the return or subsequent tax period,
    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 26.
      - If using Form 6001, use fill-in 25, per Exhibit 3.11.3-18.

    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 a spouse’s name is listed as a Dependent, There is no S-TIN present, Correspond for the spouse's missing signature and TIN. Use Form 3531 and check boxes 1 and 3.
    Are two signatures and a spouse is claimed on the Dependent line, 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 and do not code the spouse as a Dependent.

    Are two names in the caption and the spouse's date of death is 2022 or 2023,

    Note:

    For PY returns - Spouse's date of death is within 2 years prior to the tax period of the return.

    A Dependent is present
    1. Circle FS 2 box and check FS 5 box.

    2. Circle the deceased spouse's name and TIN in the caption. (See Figure 3.11.3-50.)

    Are no conditions above that apply,   Take no action.

    Figure 3.11.3-50

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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:

    If there And Then
    Is only one name in the caption, The spouse has no income, Circle FS 3 box and edit FS "6"
    • Edit an X to the left of the spouse's name if entered on Dependent line.

    • Edit the S-TIN from attachments if missing.

    • Do not code the spouse as a dependent when listed on the Dependent line.

    (See Figure 3.11.3-51.)
    Is only one name in the caption, The spouse has income, Correspond for the correct FS. If using Form 3531, use fill-in 40, per Exhibit 3.11.3-18. If using Form 6001, check box F.
    Are two names in the caption, two signatures,   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.

    Figure 3.11.3-51

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FS 4 (Head of Household) Box Marked
  1. When the taxpayer marks FS 4 box only:

    If Then
    A spouse is claimed on Dependent line and no other dependents are listed or claimed,
    • 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.

    A spouse is claimed on Dependent line andother dependents are listed or claimed,
    • 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.

    • Position 1, 3, 4 or 5 does not have 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 below filing status checkboxes and

    • No Schedule EIC, Form 2441, or Form 8814 with a qualifying child attached,

    Circle FS 4 box and check FS 1 box. (See Figure 3.11.3-52.)
    • A name or "see attached" is notated below filing status checkboxes or Schedule EIC, Form 2441, or Form 8814 with qualifying child is attached and

    • No dependents are entered/edited in positions 1, 3, 4, or 5

    Edit CCC "Q" . (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 26.
      - If using Form 6001, use fill-in 25, per Exhibit 3.11.3-18.

    Note:

    See the decedent return editing information in IRM 3.11.3.10.

    Figure 3.11.3-52

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    Figure 3.11.3-53

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FS 5 (Qualifying Surviving Spouse) 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 2022 or 2023,

    Note:

    For PY returns - Spouse's date of death is not within 2 years prior to the tax period of the return.

    • 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 in the filing status area.

    Circle FS 5 and check FS 4 box. (See Figure 3.11.3-54.)
    Spouse's date of death is not 2022 or 2023,

    Note:

    For PY returns - Spouse's date of death is not within 2 years prior to the tax period of the return.

    • A name or "see attached" is noted on line next to Qualifying Surviving Spouse or Schedule EIC, Form 2441, or Form 8814 with a qualifying child is attached,

    • AND no dependents are edited in positions 1, 3, 4, or 5.

    Circle FS 5 and check FS 4 box. Edit CCC "Q" .
    Spouse's date of death is not 2022 or 2023,

    Note:

    For PY returns - Spouse's date of death is not within 2 years prior to the tax period of the return.

    • 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, Form 2441, or Form 8814 or a name or see attached noted in the filing status area.

    Circle FS 5 and check FS 1 box.
    A spouse's date of death is within the tax period of the return or the subsequent tax period, One name in the name line,
    1. Correspond, if the spouse’s name can’t be found.
      - If using Form 3531, check box 26.
      - If using Form 6001, use fill-in 25, per Exhibit 3.11.3-18.

    Spouse's date of death is not present,   Take no action.

    Figure 3.11.3-54

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Dependents

  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 (two on a joint return), as long as they 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.

Dependent Coding

  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 zero (TY18 and later)

      Note:

      For TY17 and prior, Dependent position 2 will be edited as "Child who did not live with you" .

    • Dependent position 3 - Parent relationships

    • Dependent position 4 - Qualifying child relationships

    • Dependent position 5 - Other relationships

    • Dependent position 6 - Overflow

    (See Figure 3.11.3-55.)

  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 3.11.3-56.)

  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 3.11.3-57.)

  7. If the taxpayer indicates a relationship of "Self" , "Me" , "Spouse" , "Husband" , "Wife" , or "Common law spouse" , edit an "X" to the left of the dependent name and do not code them in any position.

    Figure 3.11.3-55

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    Figure 3.11.3-56

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    Figure 3.11.3-57

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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. Child who did not live with you due to divorce or separation, position 2 is not applicable for TY18 and later and will always be edited as 0 when it is necessary to edit subsequent dependent positions. For TY17 and prior, when an entry is present in position 2, Form 8332, Form 2120, or copy of divorce decree is attached, edit FPC "A" .

    Note:

    Form 8332 or Form 2120 must show entries.

  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

    • "Sibling" , "brother" , "sister" , "brother-in-law" , "sister-in-law" , "step-sibling" , "step-brother" , "step-sister" , "half-sibling" , "half-brother" or "half-sister"

    • "Siblings child" , "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:

    • "Parent’s sibling" , "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

      Note:

      Indication that the dependent did not live in the U.S. include, but are not limited to the following notation:
      "CN" or "Canada"
      "F" for foreign dependent
      "MX" or "Mexico"

    • "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 any position, edit the excess in position 6.

    Note:

    Do not use Schedule EIC to determine Dependent positions.

Dependent's Name Control and TIN

  1. 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, and Form 2441, for any dependent TIN not listed or invalid on the Dependent lines.

    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, column (4).

    Note:

    If a Form W-7A is attached, see IRM 3.11.3.13.2.1.1.

  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. (See Figure 3.11.3-58.)

    Figure 3.11.3-58

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  3. If the TIN is invalid or not found on the return or attachments, take the following actions:

    If the taxpayer And Then
    Provides no TIN, less than four TINs are present for other dependents, "X" the dependent’s name. (See Figure 3.11.3-59.)

    Note:

    Still code for dependents.

    Provides no TIN, at least four TINs are present for other dependents, "X" dependent- positions 1-6. (See Figure 3.11.3-60.)

    Note:

    Also "X" the dependent’s name if present.

    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 5 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 4 and for Form 6001, use box F for Form 5129.

    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" .
    • Notation of NRA is present.

    Figure 3.11.3-59

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    Figure 3.11.3-60

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Adoption TIN
  1. A taxpayer who does not know the TIN of the child they are 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 Position 1 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 must 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 05-14-2025. Edit this date on line 4 of Form 3471, Edit Sheet, if current date is after April 15, 2025.

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. 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 3.11.3-61.)

      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, 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 3.11.3-62.)

    Figure 3.11.3-61

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    Figure 3.11.3-62

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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.

    Reminder:

    Any instructions for Form 1040 also apply to Form 1040-SR, 1040(SP) and 1040-SR(SP).

    These instructions include:
    • General editing procedures

    • Income (lines 1a through 8)

    • Adjusted gross income (line 11)

    • Total tax (line 24)

    • Federal Income Tax Withheld (lines 25a through 25c)

    • Refund or amount owed (lines 35a through 37)

    • Estimated Tax Penalty (line 38)

    • Third Party Designee

    • Signature

    • Preparer information

  2. All lines on Form 1040 are T-lines, except for the following:

    • Lines 1b - 1h

    • Line 12

    • Line 14

    • Line 17

    • Line 18

    • Line 20

    • Line 22

    • Line 25a

    • Line 25b

    • Line 25c

    • Line 31

    • Line 34

  3. There are also T-Compute lines on Form 1040. These are:

    • Line 1z

    • Line 9- Total Income

    • Line 11 - Adjusted Gross Income

    • Line 15 - Taxable Income

    • Line 21 - Total Non-Refundable Credits (NA for TY18-TY19)

    • Line 24 - Total Tax

    • Line 25d - Federal Income Tax Withheld

    • Line 32 - Total Other Payments and Refundable Credits

    • Line 33 - Total Payments

    • Line 35a - Refund Amount

    • Line 37 - 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.

  4. Refer multiple Form 1040 for the same taxpayer and same tax period to the Work Leader for combining.

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 38. 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 (for 1040-SR page 1, 2, 3 or 4). (See Figure 3.11.3-63.) Also edit SPC "Y" if FFF is present in the bottom margin.

    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 3.11.3-63

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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
    Natural Disaster/Emergency Relief Program IRM 3.11.3.6.1.3
    Hardship/Taxpayer Advocate Services (TAS) 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
    Identity Theft IRM 3.11.3.6.1.7
    Suicide Threat 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 Deferrable Income IRM 3.11.3.6.2.6
    Correspondence Imaging Inventory (CII) 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
    Misblocked IRM 3.11.3.6.2.14
    Misfiled IRM 3.11.3.6.2.15
    Reinput IRM 3.11.3.6.2.16
    Returns Secured by Collections IRM 3.11.3.6.2.17
    Short Period IRM 3.11.3.6.2.18
    Substitute for Return IRM 3.11.3.6.2.19
    52-53 Week IRM 3.11.3.6.2.20
    Blind Trust IRM 3.11.3.6.2.21
  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 1a through 32

  1. All lines on Form 1040 are edited in dollars only except lines 24 through 38.

Line 1a - W-2 Wages
  1. Use the table below for editing conditions on line 1a Form 1040:

    Condition on Line 1a Action
    Entry on line 1a, no Form W-2 attached. Take no action. Form W-2 is not required for line 1a. (May be required as support for earned income when EIC is claimed.)
    (See IRM 3.11.3.14.2.32.)
    Line 1a is blank. Edit amounts from Wages, tips and other compensation box on Forms W-2.

    Exception:

    Do not edit to line 1a if Form W-2 income is for a minister, insurance salesman, or statutory employee and the income is reported elsewhere on the return.

    W-2 Income Edit to line 1a if found elsewhere.

    Exception:

    Leave where found and edit RPC"S" if taxpayer is a minister, insurance salesman, or if statutory employee is indicated.

  2. Use the following table for editing other income:

    Income Identified As: Action:
    Dependent Care Benefits (DCB) on other than Form 1040, line 1e, Delete where found and edit to line 1z.
    Deferred Compensation (DFC) on other than Schedule 1, line 8t, Delete the amount where found and edit to Schedule 1, line 9.
    Disability Pension, (on other than lines 1h, 4a, or 4b),
    1. If statement indicates treatment as retirement pension, delete and add to line 5b.

      Note:

      If Disability Pension is identified on line 5a or 5b, take no action.

    2. If Form 1099-R, box 7, has Distribution Code 3, delete where found and add to line 1z.

    Disability Pension (not on lines 1h, 4a, or 4b) 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.

    Delete where found and add to line 1z.
    Gambling other than on Schedule 1, line 8b,
    1. Delete gambling amount where found and add to Schedule 1 line 9.

      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 3.11.3.18.1.

    Gambling (Net: winnings minus losses),
    1. No indication of a professional gambler:

      1. Delete amount where found and edit to Schedule 1, line 9.

        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 net amount is zero, and no gross amount is indicated 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 7, per Exhibit 3.11.3-18.

    2. Indication of professional gambler:

      1. Delete gambling amount from where found and add to Schedule 1 line 3.

        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 16.

    Medicaid Waiver Payment (MWP), Notice 2014-7, IRC 131, In-Home Health Services (IHHS), In-Home Support Services (IHSS), Difficulty of Care payment, Take No Action

    Note:

    This income is an acceptable source for EIC.

    Non-Disability Pension, Delete where found. Move the amount to line 5b. (See Figure 3.11.3-64.)
    Non-Employee Compensation other than on line 1a, 1h, or Schedule 1, line 8z,
    1. Delete where found and add to Schedule 1 line 9.

      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 (with or without Form 1099-NEC), and Schedule SE is not attached or reported, also edit RPC "N" .

      Note:

      Do not edit RPC "N" if Self-Employment and non - self-employment cannot be broken down.

    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 Form 1040, line 1a, or, if reported on lines 1b through 1h, subtract from line 1z.
    Pension, See Disability or Non-Disability Pension.
    Prisoner Income (PRI), wages earned while incarcerated other than on Schedule 1, line 8u, Delete where found and edit to Schedule 1 line 9. For TY22 and later, also edit SPC "J" .
    Railroad Retirement Benefits,
    1. If gross and taxable amounts with a difference of $1 or more can be determined, move to lines 5a and 5b.
      See IRM 3.11.3.14.2.12.

    2. Otherwise, edit the amount to line 5b.

    Scholarship (SCH), Fellowship, Grant, or Stipend other than on Schedule 1, line 8r, Delete the amount where found and edit to Schedule 1, line 8r.
    Self-Employment Income other than on Schedule 1, line 8z (See Exhibit 3.11.3-11 for an extensive listing of types of self-employment),
    1. Delete where found and add to Schedule 1 line 9.

      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-NEC is attached with or without a notation and an amount is present in box 1, Form 1099-NEC, edit RPC "N" unless the amount is less than $434 or Schedule SE is present. On prior year returns, amount may be found on Form 1099-MISC, box 7.

      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 1a and included the amount on Form 8919.

    Sick Pay, Delete where found and edit to Form 1040, line 1a.
    Social Security Benefits,
    1. If gross and taxable amounts can be determined, move to lines 6a and 6b.

    2. Otherwise, move the amount to line 6b.

    Strike Pay/Benefits, Delete where found and edit to Form 1040, line 1a.
    Sub-Pay TRA (Repayment of Supplemental Unemployment Benefits (SUB)), If repayment is indicated on Schedule 1 line 24z and it is for SUB amounts received in:
    • Tax period of return - delete the repayment amount and adjust line 25 to exclude it.

    • Prior tax period - do not adjust line 25.

      Note:

      If the year of payments is not noted, assume they were made in the tax period of the return.

    Unemployment Compensation other than on Schedule 1, line 7, Delete where found and add to Schedule 1 line 7.

    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.

    Note:

    All income reported or identified as nontaxable must be reported on Schedule 1.

    Figure 3.11.3-64

    This is an Image: 33440064.gif

    Please click here for the text description of the image.

Line 1b - Household Employee Wages (HSH)
  1. Edit SPC "E" if an amount is present on line 1b.

Line 1e - Taxable Dependent Care Benefits (DCB) - Form 2441
  1. If an amount is present on line 1e, Form 2441 must be attached. If not attached, correspond for Form 2441.

Line 1f - Employer Provided Adoption Benefits - Form 8839
  1. If an amount is present on line 1f, Form 8839 must be attached. If not attached, correspond for Form 8839.

Line 1g - Wages - Form 8919
  1. If an amount is present on line 1g, Form 8919 must be attached. If not attached, correspond for Form 8919.

Line 1h - Other Earned Income
  1. (Reserved)

Line 1i - Nontaxable Combat Pay Election
  1. Nontaxable Combat Pay is entered on line 1i. If found elsewhere on the return, delete where found and edit to line 1i.

Line 1z - Total Wages
  1. Compute and edit line 1z when it is blank, dash, zero or illegible and there are any entries on lines 1a - 1h.

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 9.

      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
  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 3.11.3-65.)

  2. Do not edit the amount from 4a on line 4b when line 4b is blank.

  3. If "SIE" Split Interest Entity or similar is written next to line 4b, edit SPC "3" .

    Figure 3.11.3-65

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Lines 5a and 5b - Pensions and Annuities
  1. Delete the amount on line 5a when lines 5a and 5b are the same or there is a difference of less than $1.

  2. Do not edit the amount from 5a to line 5b when line 5b is blank.

  3. Do not move pension income from line 5b to line 1.

  4. Move the gross and taxable amounts of Railroad Retirement Benefits (RRB) to lines 5a and 5b when claimed elsewhere on the return.

Lines 6a, 6b and 6c - Social Security Benefits
  1. If an amount is present on line 6b and the amount on line 6a is the same or line 6a is blank:

    1. If Form SSA-1099 is attached, edit the gross Social Security amount in box 5 to line 6a.

    2. Take no action when the gross amount of Social Security payments cannot be determined.

  2. "X" a negative amount on line 6a or 6b.

  3. Take no action when the taxpayer writes "D" on line 6a or 6b.

  4. Edit CCC "H" when the taxpayer marks the box on line 6c, indicating Lump Sum Exclusion method is being used.

Line 7 - Capital Gain or Loss
  1. Edit RPC "T" when all the following apply (see Figure 3.11.3-66):

    • There is a positive amount of $1 or more on Form 1040, line 7.

    • Schedule D is not attached.

    • Line 7 box is marked.

    Figure 3.11.3-66

    This is an Image: 33440066.gif

    Please click here for the text description of the image.

  2. When an amount is present on line 7, Schedule D is not attached, and the line 7 checkbox is not marked, or the line 7 checkbox is marked, and a negative entry is present on line 7:

    If And Then
    A document (other than a BMF Schedule D) from which a Schedule D (Form 1040) can be dummied is attached, Column (h) can be determined, Dummy a Schedule D. Edit total short-term gains/losses to line 7 and total long term gains/losses to line 15, Schedule D. (See Figure 3.11.3-67.)

    Note:

    See Exception below.

    There are no documents attached from which a Schedule D can be dummied, The amount on line 7 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Dummy the amount to line 7, Schedule D. (See Figure 3.11.3-68.)

    Note:

    See Exception below.

    There are no documents attached from which a Schedule D can be dummied, The amount on line 7 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Correspond for the missing Schedule D.
    A BMF (e.g., Form 1120, Form 1041) Schedule D is attached, Column (h) can be determined, Either renumber the lines as necessary on the BMF Schedule D to match the Schedule D (Form 1040) T-lines, or dummy a Schedule D (Form 1040) by editing all T-lines from the BMF Schedule D.

    Note:

    If renumbering, edit sequence code "12" and see Exception below.

    Exception:

    Do not dummy Schedule D if corresponding for other missing return items. Instead, include the request for Schedule D in the correspondence to the taxpayer.

  3. If income reported from Insurance Companies Demutualization is present (reported by the taxpayer on Form 1099-B), but entered on a line other than Form 1040, line 7, edit that amount to line 7 and dummy a Schedule D.

    Figure 3.11.3-67

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    Figure 3.11.3-68

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Line 8 - Other Income
  1. If there is an amount entered on Form 1040, line 8, Schedule 1 must be attached. If not attached, correspond for Schedule 1. If corresponding for Schedule 1 for entry on line 8 and line 10, 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. When dummying Schedules 1-3, use Form 6114-A. See paragraph (2) below.

  2. Use the following table as a guide to dummying Schedule 1 Part I:

    If Then
    Schedule C is attached with an entry on line 31, Dummy the line 31 amount to line 3, Schedule 1.
    Form 4797 is attached with an entry on line 18b, Dummy the line 18b amount to line 4, Schedule 1.
    Schedule E is attached with an entry on line 26 or 41, Dummy the line 41 amount or line 26 if line 41 is blank, to line 5, Schedule 1.
    Schedule F is attached with an entry on line 34, Dummy the line 34 amount to line 6, Schedule 1.
    Form 8889 is attached with an entry on line 16 or line 20, Dummy the line 16 or line 20 amount to line 9, Schedule 1.
    Form 1099-G is attached with an amount for Unemployment Compensation, Dummy amount to line 7, Schedule 1.

    Note:

    This list is not all inclusive.

Line 9 - Total Income
  1. Compute and edit line 9 when it is blank, dash, zero or illegible and there are any entries on lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8.

Line 10 - Adjustments to Income
  1. If there is an amount entered on Form 1040, line 10, Schedule 1 must be attached. If not attached, correspond for Schedule 1. If corresponding for Schedule 1 for entry on line 8 and line 10, 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. When dummying Schedules 1-3, use Form 6114-A. See paragraph (2) below.

  2. Use the following table as a guide to dummying Schedule 1 Part II:

    If Then
    Form 2106 is attached with an amount on line 10 Dummy the line 10 amount to line 12, Schedule 1.
    Form 8889 is attached with an amount on line 13, Dummy the line 13 amount to line 13, Schedule 1.
    Form 3903 is attached with an amount on line 5, Dummy the line 5 amount to line 14, Schedule 1.
    Schedule SE is attached with an amount on line 13, Dummy the line 13 amount to line 15, Schedule 1.

    Note:

    This list is not all inclusive.

Line 11 - Adjusted Gross Income
  1. Perfect line 11 when it is blank, dash, zero, or illegible by subtracting line 10 from line 9.

Line 12 - 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 11 to zero or a negative dollar amount.

    1. "IE" is noted to the left of line 12, and the amount claimed is ≡ ≡ ≡ ≡ ≡ ≡

    2. The amount on line 12 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 3.11.3-69.)

      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 $14,600
    1 - Single 1 $16,550
    1 - Single 2 $18,500
    2 - Married Filing Jointly or 5 - Qualifying Surviving Spouse 0 $29,200
    2 - Married Filing Jointly or 5 - Qualifying Surviving Spouse 1 $30,750
    2 - Married Filing Jointly or 5 - Qualifying Surviving Spouse 2 $32,300
    2 - Married Filing Jointly or 5 - Qualifying Surviving Spouse 3 $33,850
    2 - Married Filing Jointly or 5 - Qualifying Surviving Spouse 4 $35,400
    3 - Married Filing Separately 0 $14,600
    3 - Married Filing Separately 1 $16,150
    3 - Married Filing Separately 2 $17,700
    3 - Married Filing Separately 3 $19,250
    3 - Married Filing Separately 4 $20,800
    4 - Head of Household 0 $21,900
    4 - Head of Household 1 $23,850
    4 - Head of Household 2 $25,800

    Figure 3.11.3-69

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Line 13 - Qualified Business Income Deduction
  1. If an amount is present, Form 8995 or Form 8995-A must be attached. If missing, correspond for Form 8995-A.

    Note:

    See IRM 3.11.3.51, Form 8995 / 8995-A / 8995-A Schedule C - Qualified Business Income Deduction, for possible editing of FPC "H" .

Line 15 - Taxable Income
  1. Compute and edit line 15 only when it is blank, dash, zero, or illegible, and there are entries leading to a positive total.

Line 16 - Tax
  1. If box "1" and/or "2" on line 16 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 16 is marked and "965" is noted, edit RPC "F" . Form 965-A must be attached. However, if not attached, correspond only if corresponding for other missing information.

Line 17 - Additional Taxes (Not Transcribed)
  1. If an amount is present on line 17, Schedule 2 must be attached. If not attached, correspond for Schedule 2.

    Exception:

    If a Schedule 2 can be dummied from attachments, do not correspond unless already corresponding for other missing information. When dummying Schedules 1-3, use Form 6114-A.

  2. Follow instructions below for dummying Schedule 2 Part I:

    If Then
    Form 6251 is attached Dummy the line 11 amount to line 2, Schedule 2
    Form 8962 is attached Dummy the line 29 amount to line 1a, Schedule 2

    Note:

    This list is not all-inclusive.

Line 19 - Child Tax Credit or Credit for Other Dependents - Schedule 8812
  1. Reserved.

Line 20 - Non-Refundable Credits (Not Transcribed)
  1. If an amount is present on line 20, Schedule 3 must be attached.

    • If Schedule 3 is not attached, correspond for Schedule 3. If corresponding for Schedule 3 for entry on line 20 and line 31, correspond for only one missing Schedule 3. Use the first entry amount and line number on the return.

    • If Schedule 3 is attached, line 20 of Form 1040 is≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and lines 1-7 of Schedule 3 are blank, correspond for an explanation unless the taxpayer indicated FNS. For Form 6001, check box "O" . For Form 3531, check box 19-20.

    Exception:

    If a Schedule 3 can be dummied from attachments, do not correspond unless already corresponding for other missing information. When dummying Schedules 1-3, use Form 6114-A.

  2. Follow instruction below for dummying Schedule 3 Part I:

    If Then
    Form 1116 is attached, Dummy the line 35 amount to line 1, Schedule 3.
    Form 2441 is attached, Dummy the line 11 amount to line 2, Schedule 3.
    Form 8863 is attached, Dummy the line 19 amount to line 3, Schedule 3.
    Form 8880 is attached, Dummy the line 12 amount to line 4, Schedule 3.
    Form 5695 is attached, Dummy the line 15 amount to line 5a, Schedule 3. Dummy the line 32 amount to line 5b, Schedule 3
    Form 3800 is attached, Dummy the line 38 amount to line 6a, Schedule 3.
    Form 8801 is attached, Dummy the line 25 amount to line 6b, Schedule 3.
    Form 8839 is attached, Dummy the line 16 amount to line 6c, Schedule 3.
    Schedule R is attached, Dummy the line 22 amount to line 6d, Schedule 3.
    Form 8910 is attached, Dummy the line 15 amount to line 6e, Schedule 3.
    Form 8936 is attached, Dummy the line 13 amount to line 6f, Schedule 3. Dummy the line 18 amount to line 6m, Schedule 3.
    Form 8396 is attached, Dummy the line 9 amount to line 6g, Schedule 3.
    Form 8859 is attached, Dummy the line 3 amount to line 6h, Schedule 3.
    Form 8834 is attached, Dummy the line 7 amount to line 6i, Schedule 3.
    Form 8911 is attached, Dummy the line 19 amount to line 6j, Schedule 3.
    Form 8912 is attached, Dummy the line 12 amount to line 6k, Schedule 3.
    Form 8978 is attached, Dummy the line 14 amount to line 6l, Schedule 3.

    Note:

    This list is not all inclusive.

  3. Only the first line with an amount will be transcribed from lines 6h - 6l. When dummying from the following forms, edit from the first form with an amount and disregard the other forms.

    • Form 8859

    • Form 8834

    • Form 8911

    • Form 8912

    • Form 8978

Line 21 - Total Statutory Credits
  1. Perfect line 21 when it is blank, dash, zero, or illegible by adding lines 19 and 20.

Line 23 - Other Taxes
  1. If an amount is present on line 23 and Schedule 2 is not attached or Schedule 2 is attached and lines 4 through 20 are blank, correspond for missing Schedule 2.

    Exception:

    If a Schedule 2 can be dummied from attachments, do not correspond unless already corresponding for other missing information. When dummying Schedules 1-3, use Form 6114-A.

  2. Follow instructions below for dummying Schedule 2 Part II:

    If Then
    Schedule SE is attached, Dummy the line 12 amount to line 4, Schedule 2.
    Form 4137 is attached, Dummy the line 13 amount to line 7 Schedule 2.
    Form 8919 is attached, Dummy the line 13 amount to line 7, Schedule 2.
    Form 5329 is attached, Dummy the line 4 amount to line 8, Schedule 2.
    Form 1040 Schedule H is attached, Dummy the line 26 amount to line 9, Schedule 2.
    Form 5405 is attached, Dummy the line 8 amount to line 10, Schedule 2.
    Form 8611 is attached, Dummy the line 17 amount to line 16, Schedule 2.
    Form 8889 is attached, Dummy the line 17b amount to line 18, Schedule 2.
    Form 8853 is attached, Dummy the line 9b amount to line 18, Schedule 2.
    Form 8959 is attached, Dummy the line 18 amount to line 11, Schedule 2.
    Form 8960 is attached, Dummy the line 17 amount to line 12, Schedule 2.

    Note:

    This list is not all inclusive.

Line 24 - Total Tax
  1. Edit line 24 as dollars and cents when adjusting or computing and editing amounts.

  2. Compute and edit line 24 when it is blank, dash, zero (0), or illegible and there are entries leading to a total.

    1. Add lines 22 & 23.

    2. If line 18 has a significant entry and there are no entries on lines 19 through 23, edit the line 18 amount on line 24.

    3. If line 16 has a significant entry and there are no entries on lines 17 through 23, edit the line 16 amount on line 24.

  3. Use the table below for editing CCC "B" :

    Reminder:

    Do not edit CCC "B" on uncomputed returns.

    If And Then
    Line 15 is negative, zero (0), dash or "None" is noted, or it can be computed to be negative or zero (0), Lines 16 through 38 (excluding 35b, c, and d) are blank, dash, zero (0), "None" or "N/A" . Edit CCC "B" . (See Figure 3.11.3-70.)
    A significant entry on line 16 is less than or equal to line 21, Lines 22 through 38 (excluding lines 35b, c, and d) are blank, dash, zero (0), "None" or "N/A" , Edit CCC "B" . (See Figure 3.11.3-71.)

  4. Delete any amount included in line 24 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 3.11.3-70

    This is an Image: 33440070.gif

    Please click here for the text description of the image.

    Figure 3.11.3-71

    This is an Image: 33440071.gif

    Please click here for the text description of the image.

Line 25a through 25d - Withholding
  1. Valid sources of U.S. Withholding include Form W-2, Form 1099 series, and Form 8959.

  2. Take one of the following actions for line 25:

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

    Exception:

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

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    "≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    If none of the conditions described above apply, take no action

  3. If corresponding for other missing items, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ For Form 6001 use box G and ask for total amount on line 25d; for Form 3531 use box 6. If line 25d is blank, ask for the amount present on line 25a, 25b or 25c.

    Note:

    An acceptable alternative source for withholding support may be a worksheet or attachment if it has 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 25 area or on an attached worksheet is not an acceptable source for withholding support.

  4. 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, tax software statement, or employer-provided earnings statement with year-to-date totals) or attachment or worksheet as explained at IRM 3.11.3.14.2.30(3).

      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.

    • Handwritten, see Figure 3.11.3-72

    • 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" .

    Figure 3.11.3-72

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Line 26 - Estimated Tax Payments
  1. Delete and edit to the correct line any amounts determined to be other than:

    • ES tax payments

    • An overpayment applied from the 2023 return

  2. Edit Action Code "430" to send the return to Rejects in the following circumstances:

    • A statement is present on or near line 26 indicating the taxpayer wants the credit applied to their spouse's account.

    • The return is FS 3 or 6 and there is a statement or schedule present showing how estimated payments are to be allocated.

Line 27 - Earned Income Credit (EIC)
  1. The taxpayer will claim EIC by any of the following:

    1. Entering an amount on line 27.

    2. Writing "EIC" in the line 27 area.

    3. Attaching Schedule EIC with entries.

  2. Take one of the following actions when no money amount is present on line 27 and Schedule EIC is not attached:

    Note:

    For TY20 and prior, take one of the following actions when no money amount is present on line 27, Schedule EIC is not attached, and the FS is other than 3 or 6.

    If the taxpayer writes "EIC" in the line 27 area and Then
    The amount on line 11 is less than $18,591 ($25,511 for FS 2), See IRM 3.11.3.73.3.1.6. Edit "888" on line 27.

    Note:

    If editing "888" , a source of earned income must be present.

    The amount on line 11 is more than or equal to $18,591 ($25,511 for FS 2) but less than $59,899 ($66,819 for FS 2), See IRM 3.11.3.73.3.1.6. Correspond for Schedule EIC with Form 3531/6001 using fill-in 29, per Exhibit 3.11.3-18.

    Note:

    Do not edit CCC "B" if "888" has been edited or "EIC" is noted.

  3. If an amount is claimed on line 27, and Schedule EIC is missing, correspond when either of the following conditions apply:

    • Line 11 is equal to or greater than $18,591 ($25,511 for FS 2) and less than $59,899 ($66,819 for FS 2)

    • Line 27 is greater than $632

  4. Do not correspond for Schedule EIC or source of earned income if one of the following conditions apply:

    • Primary TIN (or Secondary TIN for FS 2) is invalid

    • Either spouse has an ATIN, ITIN or IRSN

    • DSI checkbox has been checked:
      "Someone can claim you as a dependent" checkbox
      "Someone can claim your spouse as a dependent" checkbox

    • Line 11 of Form 1040 is $59,899 ($66,819 for FS 2) or more

    • You can determine the entire income amount to be non-earned income

  5. Correspond when EIC is being claimed and the source of earned income is not indicated or attached and cannot be determined through research. (See Figure 3.11.3-73.) For Form 6001, check box X. For Form 3531, check box 7.

    Exception:

    Do not correspond for the source of earned income on Secured Returns.

    Note:

    Do not research source of earned income if there are other correspondence issues on the return. Instead, correspond for source of earned income when corresponding for other missing information. See the table below for examples of what is (and is not) earned income.

    Figure 3.11.3-73

    This is an Image: 33440073.gif

    Please click here for the text description of the image.

    Earned Income NOT Earned Income
    • Form W-2 or similar statement

    • Form 1099-MISC (Box 7 on TY19 and prior)

    • Form 1099-NEC (TY20 and later)

    • Form 1099-R with Distribution Code 3 and/or Disability

    • Form 4137

    • Form 8919

    • Schedule C with a positive entry on line 31

    • Schedule E, Part II with a positive entry on line 32

    • Schedule F with a positive entry on line 34

    • Schedule SE

    • Amount on line 1b, Form 1040 or notation of "HSH"

    • Notation on Schedule 1 line 8z indicating self-employment

    • Medicaid Waiver Payment (MWP), Notice 2014-7, IRC 131, In-Home Health Services (IHHS), In-Home Support Services (IHSS), Difficulty of Care payment

    • PYEI Prior Year Earned Income (TY17-TY21 only)

    • Alimony and child support

    • Interest and dividends

    • Non-disability pensions and annuities (e.g., Form 1099-R showing income other than Distribution Code 3)

    • Nontaxable foster care payments

    • Social Security and railroad retirement benefits (including disability benefits)

    • Unemployment compensation (insurance)

    • Veterans' benefits (including VA rehabilitation benefits)

    • Welfare benefits

    • Workers' compensation benefits

    • Schedule E, Part I

    • Wages earned while incarcerated

  6. Edit RPC "B" when there is no significant entry on line 27 and the taxpayer has written:

    1. "No" or "None" in the line 27 area. (See Figure 3.11.3-74.)

    2. "Amish" or "Mennonite" anywhere on the return.

    3. "Exempt Notary" , "Exempt Form 4029" , or "Exempt Form 4361" anywhere on the return.

    4. A clear indication that they do not want or do not qualify for EIC.

      Note:

      A blank is not a "clear indication" . Do not edit RPC "B" solely because the form has zeros or dashes on all unused lines. The zeros or dashes may indicate the lines are not being used, not that the taxpayer does not want or qualify for EIC.

    Exception:

    Do not edit RPC "B" when "EIC" is noted on or to the right of line 27, "888" has been edited to line 27, or if a Schedule EIC with entries is attached.

  7. "X" the amount on line 27 and edit RPC "B" when any of the following are present:

    1. a clear indication that an exemption from SE tax was given on Form 4029 or Form 4361

    2. Form 4029 or Form 4361 is attached

    3. notation of "Exempt/Notary" or "Exempt"

    4. notation of "Amish"

    5. notation of "Mennonite"

    Figure 3.11.3-74

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    Please click here for the text description of the image.

Line 28 - Additional Child Tax Credit (Schedule 8812)
  1. If an amount is claimed on line 28 and there are 3 or more qualifying children with the CTC checkbox marked in column (4) of the dependent area of the return, Schedule 8812 must be attached.

    Note:

    For TY18 and later ITINs are not valid on Schedule 8812.

  2. If Schedule 8812 is missing and the condition in (1) above applies, correspond.

Line 29 - Refundable American Opportunity Credit or Education Credit (Form 8863)
  1. If an amount is claimed on line 29, Form 8863 must be attached. If missing, correspond for Form 8863.

Line 30 - Reserved
  1. Reserved.

Line 31 - Other Payments and Credits
  1. If an amount is claimed on line 31, Schedule 3 must be attached. Correspond for Schedule 3 if missing.

    Exception:

    Do not correspond if line 31 can be determined to be a subtotal or if a Schedule 3 can be dummied from attachments. When dummying Schedules 1-3, use Form 6114-A. Do not dummy, instead correspond when corresponding for other missing information.

  2. Follow instructions below for dummying Schedule 3 Part II:

    If Then
    Form 8962 is attached Dummy the line 26 amount to line 9, Schedule 3.
    Form 4136 is attached Dummy the line 17 amount to line 12, Schedule 3.
    Form 8885 is attached Dummy the line 5 amount to line 14, Schedule 3.

    Note:

    This list is not all inclusive.

Line 32 - Total Other Payments and Refundable Credits
  1. Compute and edit line 32 when blank, dash, zero or illegible, and there are entries leading to a total.

    Note:

    Do not include "888" when it has been edited on line 27.

Line 33 - Total Payments
  1. When there is an amount on line 33 and lines 25d, 26, and 32 are blank, and no withholding documents (Forms W-2, W-2G or 1099 Series) are attached, take one of the following actions.

    If And Then
    The amount on line 33 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ there is a significant entry on line 1a, 4b or 5b Form 1040 or line 7, Schedule 1, Correspond for an explanation of the amount on line 33. For Form 6001 use box O, for Form 3531 use box 19-20.
    The amount on line 33 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ there are no significant entries on lines 1a, 4b or 5b Form 1040 or line 7, Schedule 1, Edit the amount to line 26.
    The amount on line 33 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ there is a significant entry on line 1a, 4b or 5b Form 1040 or line 7, Schedule 1, Edit the amount to line 25d and edit RPC "G" .
    The amount on line 33 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ there are no significant entries on lines 1a, 4b or 5b Form 1040 or line 7, Schedule 1, Edit the amount to line 26.

  2. Delete any credits identified by the taxpayer on lines 25d through 33 (dotted portion) that do not belong on the current year Form 1040. For example, a credit for a prior year refund not received.

  3. Compute and edit line 33 when it is blank, dash, zero, or illegible and there are entries present leading to a total.

Refund or Amount Owed - Lines 34 through 38

  1. Line 34 is not a T-line. Lines 35a and 37 are T-Compute lines. Edit lines 35a, 36 and 37 in dollars and cents when adjusting or computing and editing amounts.

Line 35a - Refund
  1. Compute and edit line 35a when lines 34, 36, and 37 are all blank, line 33 is greater than line 24, and any one of the following conditions are present:

    1. Line 24 has an entry.

    2. The taxpayer computed or indicated no tax due on lines 16, or 24.

    3. It can be determined that line 24 would be zero if it were computed.

  2. Do not edit CCC "B" when line 35a has been computed to be a significant amount.

  3. Edit Action Code "341" when the amount on line 35a is:

    1. Less than $1 and the taxpayer submits a written request for a refund.

    2. One million dollars ($1,000,000) or more and within 21 days of the expiration of the 45-day interest free period.

      Note:

      Consider the return within the 21 day time frame if the processing date is more than 20 days after the Received Date or the Return Due Date (whichever is later).

  4. Hand carry fully edited refund returns of $1,000,000 or more to your work leader. The work leader will ensure all correspondence and/or research is addressed and carry the return as a walk through to Numbering, ISRP and ERS to assist in providing subject matter expert support for timeliness. See (3) above for possible editing of Action Code "341" .

Lines 35b, 35c, and 35d - Direct Deposit Information
  1. Edit a checkmark to the left of the direct deposit area when numeric entries are present and neither of lines 35b or 35d are deleted as instructed in (2) below.

    Note:

    The account number may contain alpha-numeric entry.

  2. Take the following actions to perfect lines 35b, 35c, and 35d:

    If Then
    Routing number present
    Account number present
    Neither checking nor savings box marked
    Edit a checkmark in the "checking" box (or to the left of the word "checking" if no box is present). (See Figure 3.11.3-75a.)
    Routing number present
    Account number present
    Both checking and savings box marked
    Circle the box that represents "savings" . (See Figure 3.11.3-75b.)
    Routing number present and
    Account number NOT present or
    Routing number NOT present
    Account number present
    Edit an "X" in the first position of the blank line, or if the field is not boxed-in, to the left of the blank line. (See Figure 3.11.3-76a.)
    Routing number blank
    Account number blank
    Both checking and savings boxes blank
    Edit a single "X" over Routing and Account number lines. (See Figure 3.11.3-76b.)
    Routing number blank
    Account number blank
    Checking or savings is present
    Edit an "X" in the first available blank position for both Routing number and Account number lines. (See Figure 3.11.3-76c.)
    Routing number altered and/or
    Account number altered
    or, if either or both have been lined through by another area (e.g., CII, 1040-X)
    Edit an "X" in the first position for both Routing and Account number lines. If either checking or savings box is not already indicated, edit a checkmark in the checking box. (See Figure 3.11.3-76d.)
    Pre-printed X’s are Present in
    Routing number
    Account number
    Routing and Account number are also present
    Edit an "X" in the first position for both Routing and Account number lines. (See Figure 3.11.3-76e.)
    Pre-printed X’s are Present in
    Routing number
    Account number
    Checking and/or savings
    Edit a single "X" over Routing and Account number lines. (See Figure 3.11.3-76f.)
    Pre-printed X’s are Present in
    Routing number
    Account number
    Checking and savings is blank
    Edit a single "X" over Routing and Account number lines. (See Figure 3.11.3-76g.)

    Note:

    If entries other than X are present, such as the dash or asterisk, they will be treated the same as an X.

    Figure 3.11.3-75

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    Figure 3.11.3-76

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Line 36 - ES Credit Elect
  1. When lines 34, 35a, and 36 are the same, see Figure 3.11.3-77 and perfect them as follows:

    If ES payments (Line 26) Then
    Are claimed, "X" the entry on line 35a.
    Are not claimed, "X" the entry on line 36.

    Note:

    An overpayment can be divided between lines 35a (refund) and 36 (ES credit elect).

  2. Edit Action Code "430" to send the return to Rejects in the following circumstances:

    • A statement is present on or near Form 1040 line 26 or line 36, indicating the taxpayer wants the credit applied to their spouse's account.

    • The return is FS 3 or 6 and there is a statement or schedule present showing how estimated payments are to be allocated.

  3. Exclude the additional amount when line 36 includes an amount for any of the following:

    • Late filing penalty

    • Late payment penalty

    • Interest

    Note:

    Do not exclude estimated tax penalty.

    Figure 3.11.3-77

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Line 37- Amount You Owe (Balance Due)
  1. Compute and edit line 37 when it is blank, if lines 34, 35a and 36 are blank and line 24 is greater than line 33.

  2. Do not edit CCC "B" when line 37 has been computed to a significant amount.

Line 38 - Estimated Tax Penalty (Form 2210 or Form 2210-F)
  1. Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts (Sequence Code 06), and Form 2210-F, Underpayment of Estimated Tax by Farmers and Fishers, (Sequence Code 06A) are not transcribed forms. Delete these forms after editing line 38.

  2. Edit CCC "P" when Form 2210 is attached and any of the following conditions apply:

    1. Tax year is 2018 and Box A in Part II is marked and "80% or 85% Waiver" is noted next to Box A or in the Box A area.

    2. Box A or B in Part II is marked, and a statement is attached indicating the reason the taxpayer was unable to meet the estimated tax requirements. Statement must indicate:

      The taxpayer has retired after reaching age 62 or,
      Has become disabled during the tax year or the prior tax year.

      Note:

      If statement is not present, edit CCC “7” and correspond using Letter 369C, open paragraph U using the following verbiage: "We cannot consider your request for a waiver of the estimated tax penalty because the required documentation was not attached to your return. If you receive notice of penalty assessment, you may request a consideration of the assessment by mailing the required documentation along with a copy of your Form 2210, to the address that will be indicated on the notice of assessment."

    3. Any of C-E in Part II, are marked.

    4. There is any indication on Form 2210, or in the line 38 area of Form 1040 of Annualized Income (AI):

    5. Disaster/loss is indicated other than Federally Declared Disaster. (See Exhibit 3.11.3-9.)

      Exception:

      Take no action and do not edit CCC "P" if there is an indication of Federally Declared Disaster on Form 2210, 2210-F or Form 1040.

  3. Edit CCC "P" when Form 2210-F is attached, and all the following conditions are met:

    1. Tax Period is 2024/12 and,

    2. Box A (relating to a waiver) Part I, is checked and,

    3. The return was received no later than April 15, 2025 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

  4. Edit CCC "P" when Form 2210-F is attached, and all the following conditions are met:

    1. Tax period ended 2024 or 2025 with a month ending other than 12 (i.e., fiscal year return).

    2. Box A in Part I is marked and a statement is attached indicating reason for the waiver. Statement must indicate:
      The taxpayer has retired after reaching age 62 or older or,
      Has become disabled during the tax year or the prior tax year.

    Note:

    If statement is not present, edit CCC “7” and correspond using Letter 369C, open paragraph U using the following verbiage: "We cannot consider your request for a waiver of the estimated tax penalty because the required documentation was not attached to your return. If you receive notice of penalty assessment, you may request a consideration of the assessment by mailing the required documentation along with a copy of your Form 2210, to the address that will be indicated on the notice of assessment."

    Reminder:

    DO NOT edit CCC "P" on a return for TY21 and prior with a Form 2210-F attached.

    Reminder:

    Take no action and do not edit CCC "P" or CCC "7" if there is an indication of Federally Declared Disaster on Form 2210, Form 2210-F or Form 1040.

  5. If line 38 is blank, edit to line 38 any significant amount from:

    • Form 2210, Part III, line 19 (TY20 and prior, Part III, line 17 or Part IV, line 27)

    • Form 2210-F, line 16

  6. When CCC "P" is edited, compare the line 38 entry with the amount on Form 2210, line 19 (Form 2210-F, line 16). Take the following actions when the entry on line 38 is different from the amount on Form 2210 or Form 2210-F after allowing for rounding:

    1. "X" the line 38 entry.

    2. Edit the amount from Form 2210 or Form 2210-F to line 38.

Third Party Designee

  1. (Reserved.)

Signature

  1. An original signature, made by the taxpayer, is required below the jurat (perjury statement) and within the box "Sign Here" area of the return.

    Exception:

    Accept a taxpayer's signature elsewhere on the return, if the taxpayer has arrowed their own signature to the correct area.

  2. Correspond using Form 3531 to mail back a tax return with a missing or invalid signature to the taxpayer. Mark boxes as required. Be sure to identify and include all other correspondence conditions on Form 3531 when mailing a return back to a taxpayer for a missing, photocopied, or incorrectly placed signature.

    Exception:

    On disaster or numbered returns, correspond for missing signatures using Form 6001. Do not send the return back to the taxpayer.

  3. Correspond for an original signature only when you cannot clearly determine whether the present signature is an original signature.

  4. A signature that does not appear under a jurat statement can warrant up to two correspondences to obtain a signature in the proper area. See IRM 3.11.3.5.3.2.

  5. For returns with signatures or an exception listed in paragraphs (7) and (8), continue processing. If correspondence is needed, follow normal correspondence instructions.

  6. Faxed or scanned signatures are acceptable only when they are received from another IRS area.

    1. Accept faxed or scanned signatures from the following areas:
      - Another IRS area (e.g., Substitute for Return (SFR), EEFAX)
      - Returns marked "59X-XX" (excluding "599-18" ) from Collection Operation
      - Correspondence Imaging Inventory (CII) from Accounts Management
      - Returns stamped by RIVO and/or edited with SPC "B" or "M"
      - Taxpayer Advocate Service (TAS)

      Note:

      TAS will refer to IRM 13.1.18.8.3 for specific instructions on accepting faxed signatures and the limited circumstances when it is necessary to fax a return to the IRS.


      - Centralized Offer in Compromise (OIC/COIC)

    2. These returns may have "Process as Original" , "PAO" , "Process as Original - Faxed Return" , or similar statement present at the top of the return and Form 3210 may be present.

    3. If any required information is missing or incomplete, edit CCC "3" . Do not correspond or research on returns that have an acceptable faxed or scanned signature.

  7. Joint returns require the signature of both taxpayers except when a notation indicates the spouse is:

    1. Deceased and taxpayer is filing as the surviving spouse

    2. A "POW-MIA"

    3. Unable to sign the return due to health reasons

    4. In a combat zone/qualified hazardous duty area

    5. Any of the following and a POA is attached: overseas (including military), incapacitated by disease or injury, or received advance permission from IRS.

      Note:

      When using Form 3531 to correspond for this condition, mark Box 1.

  8. Do not correspond for a missing signature when any of the following conditions are present:

    1. "Substitute for Return Prepared by IRS" is noted, a signed Form 1040-X is attached for the same period with an original signature, "See 1040-X" is noted, or "dummy" return.

    2. "Section 6020(b)" or "prompt assessment" is noted or Form 4810 is attached.

    3. Return is "amended" , "corrected" , "revised" , "tentative" , or "superseding" (See the amended return instructions in IRM 3.11.3.6.2.1.)

    4. Form 8879 is attached with a valid original signature or E-Signature, and there is an indication of rejected electronic filing or prior year.

      Note:

      See Exhibit 3.11.3-1 when Form 8879 is attached.

      Note:

      If Form 8879 is not present and there is only a letter or statement present on the return or an attachment or a 5-digit PIN present in the signature area of the return, correspond for an original signature.

    5. The return is coming from Exam, Collection or Accounts Management and "PAO" or "Process as Original" is present on the return.

    6. An employee's IDRS number is present on the signature line.

    7. Taxpayer signed an attached CP 59 or Letter 143C on the Sign Here line. CSCO will notate in the "sign here" area of the return when the taxpayer signed under the jurat on the CP 59 or Letter 143C.

    8. Form 15103 with a valid signature is attached. If FS2, each taxpayer missing a signature on the return must have a valid signature on Form 15103.

    9. Automated Substitute for Return "ASFR" is notated in the top margin, a pink Form 3531 is attached, or Letter 2566 (SC/CG) or Letter 3219 (SC/CG) is attached. Returns meeting these criteria will be pulled from the batch and routed to ASFR. See IRM 3.11.3.6.2.19.1.

    10. There is an indication of TRPRT (transcript of a return).

    11. Computer Condition Code (CCC) "3" is already present on the return.

    12. Correspondence Imaging Inventory (CII) return.

    13. Paper-printed MeF returns that are sent from TAS.

    14. Efile Graphic Print (Includes when the notation is circled out or lined through.)

    15. Centralized Office in Compromise, "OIC" or "COIC" is present on the return.

  9. Correspond for the signatures of two witnesses, if not present, when the taxpayer signs the return with a mark such as an "X" . Use Form 3531 to correspond for this condition, mark Box 1.

  10. Treat the return as unsigned and correspond for the missing, legal signature(s) if the return has no jurat or the jurat is incomplete. Use Form 3531, Box 2.

  11. When the jurat on a return has been altered or deleted treat it as a Frivolous Filing.

    1. For unnumbered returns, prepare Form 4227 and route the return to Examination.

    2. For numbered returns, edit Action Code "331" .

    Note:

    Refer to the information on frivolous filer/non-filer returns in the special situations subsection of IRM 3.11.3.6.1.6 for more instructions when the taxpayer deleted or altered the jurat.

  12. If the taxpayer used a thumbprint instead of a signature, route to the Frivolous Filing Program (FRP), unless already seen by Frivolous and then process the return as an original and do not correspond for signature.

  13. If the taxpayer is a minor child and the return is signed by an individual other than the taxpayer:

    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 requires documentary evidence ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (See IRM 3.11.3.11 for a list of fiduciary designees.)

    3. All other relationships always require documentary evidence.

      Note:

      If using Form 3531 to correspond for this condition, mark Box 1.

    Note:

    Additional special editing procedures are required on a minor taxpayer's return. Refer to the special editing instructions in IRM 3.11.3.11.2 for more information.

  14. If the return is signed by any of the following:

    1. An incompetent taxpayer's return signed by a parent or spouse never requires documentary evidence.

    2. A taxpayer's return signed by an attorney, CPA, or a representative of a bank or other fiduciary institution, to include credit unions, pension funds, etc., never requires documentary evidence.

    3. All other relationships always require documentary evidence. Correspond if missing (Court papers are acceptable as documentary evidence).

      Note:

      If using Form 3531 to correspond for this condition, mark Box 1.

    Exception:

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

    Note:

    Additional special editing procedures are required on a return with a fiduciary relationship. Refer to the special editing instructions in IRM 3.11.3.11 for more information.

  15. Refer to the decedent return instructions in IRM 3.11.3.10 when the taxpayer is deceased. Additional editing is always required on a decedent return. If a signature is missing on a decedent return, mark box 27 on a Form 3531.

  16. If a joint return is missing the spouse's signature and there is an indication the spouse refused to sign, correspond for the missing signature or correct filing status. Correspond using Form 3531 and fill-in 24, per Exhibit 3.11.3-18.

Occupation

  1. Reserved.

Identity Protection Personal Identification Number (IP PIN)

  1. Identity Protection Personal Identification Number (IP PIN) is in the "Sign Here" area of the return.

  2. If it is more or less than 6 numeric digits, circle the IP PIN.

Paid Preparer Data

  1. Preparer data is located below the taxpayer signature area.

  2. If information is present in the Paid Preparer Data area Form 8948 should be present with the return. Edit the E-File Waiver Indicator in the bottom right margin to the right of the Identity Protection PIN on Form 1040 returns or TY17 and prior Form 1040A (TY17 and prior Form 1040EZ), to the right of the daytime phone number. Edit the E-File Waiver indicator as follows:

    If the box marked on Form 8948 is: Then
    Box 1 Edit E-File Waiver Indicator "1" . (See Figure 3.11.3-78.)
    Box 2 Edit E-File Waiver Indicator "2" .
    Box 3 Edit E-File Waiver Indicator "3" .
    Box 4 Edit E-File Waiver Indicator "4" .
    Box 5 Edit E-File Waiver Indicator "5" .
    Boxes 6a - 6c Edit E-File Waiver Indicator "6" .
    More than one box is marked, Edit the E-File Waiver Indicator according to the following priority:
    Boxes 6a - 6c
    Box 3
    Box 2
    Box 1
    Box 4
    Box 5
    No box is marked but there is a notation near a box, Follow taxpayer’s intent.

    Figure 3.11.3-78

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    Please click here for the text description of the image.

Preparer Code
  1. The Preparer Code is edited in the margin to the right of the Paid Preparer Use Only area.

  2. Edit the Preparer Code as follows:

    1. Edit "P" if there is an indication the return was prepared by the IRS. (e.g., "IRS Prepared" , "Prepared but not audited" , Dummy return, prepared by IRS, and "IRS Prepared but not audited" .)

    2. Edit "R" if there is an indication the return was reviewed by the IRS.

      Exception:

      The presence of a PTIN negates the requirement for the editing of a Preparer's Code. See IRM 3.11.3.14.8.2.

Preparer TIN (PTIN)
  1. Edit the Preparer's PTIN by taking the following actions:

    If Then
    Blank with a single PTIN in the Paid Preparer area, Take no action.
    Blank with no PTIN in the Paid Preparer area, Perfect from attachments if possible.
    Illegible or incomplete, Perfect from attachments if possible. If unable to perfect, delete.
    Both an SSN and a PTIN are present in the Paid Preparer area, Delete the SSN.
    Multiple PTINs are present in the Paid Preparer area, Delete all but the first PTIN.
    Only an SSN or multiple SSNs are present in the Paid Preparer area, Take no action.

    Note:

    PTINs are identified by the alpha character "P" or "S" followed by 8 numerics. The presence of a PTIN negates the requirement for the editing of a Preparer's Code.

  2. Edit the EIN by taking the following actions:

    If Then
    Blank with an EIN in the Paid Preparer area, Take no action.
    Blank with no EIN in the Paid Preparer area, Perfect from attachments if possible.
    Illegible or incomplete, Perfect from attachments if possible. If unable to perfect, delete the EIN.
    Multiple EINs are present, Delete all but the first entry.

    Note:

    Employer Identification Number (EIN) is a 9-digit number in the following format, XX-XXXXXXX.

Preparer Phone Number
  1. Delete any incomplete, invalid (e.g., all 9's or all 0's), or illegible phone number.

    Note:

    A complete domestic phone number consists of 10 digits.

Schedule 1 - Additional Income and Adjustments to Income

  1. The instructions in this subsection of the manual are for editing Schedule 1.

  2. Edit Sequence Number "01" in the upper-right margin of Schedule 1 if not preprinted.

  3. If only Schedule 1, page 2 is attached, with T-lines present or edited, edit Sequence Number "01" in the upper-right margin of Schedule 1, page 2.

  4. The following are the T-lines and T-Compute lines on Schedule 1:

    T-Lines T-Compute Lines
    • 1099-K Amount (below names found on form)

    • Line 1

    • Line 2a

    • Lines 3 through 7

    • Line 8r

    • Line 9

    • Lines 11 through 18

    • Lines 19a and 19b

    • Lines 20 and 21

    • Line 23

    • Line 25

    • 982 Indicator (dotted area left of Line 11)

    • Line 9

    • Line 25

  5. Lines 1 through 10 are for additional income and lines 11 through 26 are for adjustments to income.

  6. "X" Schedule 1 if there are no significant T-line entries present or edited on Schedule 1.

    Exception:

    Do not delete if the 982 Indicator is/should be edited.

  7. Only one Schedule 1 can be processed. If more than one is attached, combine related T-line amounts onto one schedule and "X" those schedules not used.

Schedule 1 Form 1099-K Amount

  1. (Reserved)

Schedule 1 Line 1 - Taxable Refunds

  1. (Reserved)

Schedule 1 Lines 2a and 2b - Alimony Received and Date of Divorce

  1. Edit SPC "4" when there is an amount entered on Schedule 1 line 2a and the date entered on line 2b is later than 12/31/2018.

  2. When an amount is present on line 2a and the date is missing on line 2b, correspond for the missing date. When using Form 3531, mark Box 18 and when using Form 6001, use paragraph P.

  3. Take no action when the word "received" is crossed out and the word "recaptured" has been added in its place.

Schedule 1 Line 3 - Business Income or Loss

  1. If an amount is present on Schedule 1, line 3 and Schedule C is not attached:

    If And Then
    A document from which a Schedule C can be dummied is attached,   Dummy a Schedule C.
    1. Edit the income to lines 1 and 3.

    2. Edit the expenses to line 28.

    3. Edit other T-lines as necessary.

    Note:

    See Exception below.

    There are no documents attached from which a Schedule C can be dummied. the amount on line 3 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Dummy a Schedule C.
    1. Edit a positive amount to lines 1 and 3.

    2. Edit a negative amount to line 28.

    Note:

    See Exception below.

    There are no documents attached from which a Schedule C can be dummied. the amount on line 3 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Correspond for the missing Schedule C. Note: If Schedule SE is not attached or reported, also correspond for SE tax liability when the amount on line 3 is $434 or more. For Form 6001, use box V. For Form 3531, check box 16.

    Exception:

    Do not dummy Schedule C if corresponding for other missing return items. Instead, include the request for Schedule C in the correspondence to the taxpayer.

Schedule 1 Line 4 - Other Gains or Losses

  1. If an amount is present on Schedule 1 line 4 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 4797, Form 4684, or a statement must be attached. If missing, correspond for Form 4797.

    Exception:

    Correspond for Form 4684 instead of Form 4797, if the taxpayer notated "Form 4684" .

    Note:

    Do not"X" line 4 when the taxpayer has notated "Form 4684" .

Schedule 1 Line 5- Rents, Royalties, Partnerships, Estates, Trusts, or S Corporations

  1. If an amount is present on Schedule 1 line 5 and Schedule E is not attached, but Form 4835 is attached, "dummy" a Schedule E as follows:

    If Form 4835, Then
    Line 32, is a positive amount, Edit that amount to line 40 on Schedule E.
    Line 34c, is a negative amount, Edit that amount to line 40 on Schedule E. (See note below)
    Line 34c, is blank, Edit the loss from line 32 on Form 4835 to line 40 on Schedule E.(See note below)
    Line 7, is a positive amount, Edit that amount to line 42 on Schedule E.

    Note:

    If a taxpayer notates PAL, do not move the negative amount to line 40 on Schedule E.

  2. If an amount is present on Schedule 1 line 5, but neither Schedule E nor Form 4835 is attached, dummy a Schedule E (if possible) using supporting statements and the table below:

    If there is a clear indication the income is from: Edit a positive amount to: OR Edit a negative amount to:
    Rents or royalties, Line 24, Schedule E. Line 25, Schedule E.
    A partnership or S-Corporation, Line 30, Schedule E. Line 31, Schedule E.
    An Estate or Trust, Line 35, Schedule E. Line 36, Schedule E.

    Note:

    Supporting statements include Schedule K-1, Form 1065, Form 4835, Form 1099-MISC, or source of income indicated on Schedule 1 line 5.

  3. If no supporting documents are attached to a Schedule E and the amount on Schedule 1 line 5 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, dummy a required Schedule E by editing a positive amount to line 24 or a negative amount on line 25 Schedule E.

    Exception:

    Do not dummy a Schedule E if corresponding for other missing return items. Instead, include the request for Schedule E in the correspondence to the taxpayer.

  4. Correspond for the missing Schedule E when the amount on Schedule 1 line 5 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and a dummy Schedule E cannot be prepared from attachments.

    Note:

    Correspond for Schedule E, if an attached Schedule E is blank.

Schedule 1 Line 6 - Farm Income or Loss

  1. If an amount is present on Schedule 1 line 6 and Schedule F is not attached:

    If And Then
    A document from which a Schedule F can be dummied is attached,   Dummy a Schedule F.
    1. Edit the income to line 9 (bracket if negative).

    2. Edit the expenses to line 33.

    3. Edit other T-lines as necessary.

    Note:

    See Exception below.

    There are no documents attached from which a Schedule F can be dummied. the amount on Schedule 1 line 6 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Dummy a Schedule F.
    1. Edit a positive amount to line 9 Schedule F.

    2. Edit a negative amount to line 33 Schedule F.

    Note:

    See Exception below.

    There are no documents attached from which a Schedule F can be dummied. the amount on Schedule 1 line 6 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Correspond for the missing Schedule F. Note: If Schedule SE is not attached or reported, also correspond for SE tax liability when the amount on Schedule 1 line 6 is $434 or more. For Form 6001, use box V. For Form 3531, check box 16.

    Exception:

    Do not dummy Schedule F if corresponding for other missing return items. Instead, include the request for Schedule F in the correspondence to the taxpayer.

Schedule 1 Line 7 - Unemployment Compensation (UEC)

  1. If Form 1099-G is attached, perfect Schedule 1 line 7 when it is blank, or amount differs from the gross amount of Unemployment Compensation (UEC) on Form 1099-G.

    Note:

    For TY20, take no action when the amount entered by the taxpayer differs from the gross amount of UEC on Form 1099-G.

  2. Delete any amount identified as supplemental benefits received from a company-financed supplemental unemployment benefits (SUB) fund. Include the amount of SUB pay on line 1a Form 1040.

  3. Take no action when a statement is present indicating an adjustment to unemployment compensation was made such as "repaid" , "pay back" or "repayment."

Schedule 1 Lines 8a through 8z - Other Income

  1. The taxpayer may include a variety of income types on Schedule 1 lines 8a - 8z. Instructions for the following types of income are included in this subsection of the manual:

    • Self-Employment Income

    • Gambling

    • Nontaxable Income

    • Scholarships, Grants, Stipends and Fellowships not reported on Form W-2

  2. Take no action for entries on lines 8a - 8z unless specifically instructed in (3) below.

  3. Use the table below for editing based on taxpayer entries on Schedule 1 lines 8a - 8z:

    Entered by Taxpayer on Schedule 1 Lines 8a through 8z Action
    Dependent Care Benefits (DCB) Move to line 1z Form 1040.
    Disability Pension Move Disability Pension to line 1z Form 1040 if Form 1099-R, box 7, has Distribution Code 3.
    Form 2555 (Indication of Foreign Income Exclusion) or Form 2555-EZ (TY18 and prior) - Line 8d Treat as an international return. (See IRM 3.11.3.6.2.13 and paragraph (8) below.)
    Gambling, Gross (losses not subtracted) If Schedule A is attached, see IRM 3.11.3.18.1.
    Gambling, Net (winnings minus losses) See IRM 3.11.3.15.9(6).
    Indian Gaming Proceeds (IGP), Indian Tribal Distribution, Indian Tribal Earnings, Native American, or similar statement Edit RPC "G" if withholding is present on line 25a-25d form 1040
    Non-Employee Compensation If amount is $434 or more (with or without Form 1099-NEC), and Schedule SE is not attached or reported, also edit RPC "N" .

    Note:

    Do not edit RPC "N" if Self-Employment and non - self-employment cannot be broken down.

    Nontaxable Income
    See IRM 3.11.3.15.9(7) for a complete list.
    Adjust Schedule 1 line 9 to exclude nontaxable amount.
    Restitution of The Holocaust, Nazi Regime, or a similar statement "X" Schedule 1 line 9.
    Section 965/965(a) If an amount is present, edit RPC "F" ; Form 965-A must be attached. However, if missing, correspond only if corresponding for other missing information.
    Self-employment types of income See IRM 3.11.3.15.9(4).
    Unemployment Compensation Exclusion (UCE) Take no action. (TY20 only)
    U.S. Treasury Rebate, Federal Tax Refund, Rate Reduction Rebate, or a similar statement "X" Schedule 1, line 9.

  4. If self-employment income is present on Schedule 1 line 8z, take the following actions:

    1. If the amount is $434 or more and Schedule SE is not attached or reported and cannot be dummied, edit RPC "N" . (See Figure 3.11.3-79.)

    2. If Form 1099-NEC is present with or without a notation on Schedule 1 line 8z and an amount is present in box 1, Form 1099-NEC, edit RPC "N" unless the amount is less than $434 or Schedule SE is present. On prior year returns, amount may be found on Form 1099-MISC, box 7.

      Note:

      Do not edit RPC "N" if any of the following conditions exist:
      - DSI return and taxpayer notes: wages from parent or newspaper route.
      - Self-Employment and non self-employment cannot be broken down. (See Figure 3.11.3-80.)
      - Taxpayer reported self-employment income on Schedule 1 line 8z and included the amount on Form 8919.

    Figure 3.11.3-79

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    Figure 3.11.3-80

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    Please click here for the text description of the image.

  5. Edit an amount from Form 1099-NEC (PY Form 1099-MISC), to Schedule 1 line 9 only when there is a clear indication the amount was not included on the return. Do not include the Form 1099-NEC (PY Form 1099-MISC), amount on Schedule 1 line 9 when any of the following are attached by the taxpayer:

    • Schedule C

    • Schedule E (Part II)

    • Schedule F

    • Form 2106

  6. Use the following table to determine the correct action when the taxpayer includes gambling amounts on Schedule 1 line 8b:

    If the taxpayer includes And Then
    Gross winnings (does not subtract losses), Schedule A is attached, Refer to the Schedule A editing instructions in IRM 3.11.3.18.1.
    Net winnings (subtracts losses from winnings), There is an indication the taxpayer is a professional gambler,
    1. Delete amount from Schedule 1 line 9.

    2. Include amount on Schedule 1 line 3.

    3. Correspond for Schedule C.

    Note:

    Also correspond for Schedule SE when the amount on Schedule 1 line 3 is $434 or more. If using Form 6001, check paragraph V. If using Form 3531, check box 16.

    Net winnings, The netted amount is not zero, "X" Schedule 1 line 9.
    Net winnings to zero, The gross amount is on the dotted portion of Schedule 1 line 8b, Edit the gross amount to Schedule 1 line 9.
    Net winnings to zero and the gross amount is not on the dotted portion of Schedule 1 line 8b, Form W-2G is not attached, Correspond for the gross winnings amount
    with Form 3531/6001, using fill-in 7, per Exhibit 3.11.3-18.
    Net winnings to zero and the gross amount is not on the dotted portion of Schedule 1 line 8b, Form W-2G is attached, Edit CCC "Y" and an Action Trail. (See Figure 3.11.3-81.)

    Figure 3.11.3-81

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  7. Adjust Schedule 1 line 9 to exclude nontaxable income. Nontaxable income includes:

    • 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/Payments

    • Worker's compensation

  8. Refer to the international return instructions in IRM 3.11.3.6.2.13 if foreign income has been excluded on Schedule 1 line 8d or if "Form 2555" , "Form 2555-EZ" (TY18 and prior), or an indication of "treaty" or "treaty article" is present on Schedule 1 line 8z.

  9. Foreign income (usually reported on line 1 Form 1040 or line 8z Schedule 1) does not automatically indicate an international return. Do not route returns to Austin, unless one of the forms/conditions at IRM 3.11.3.6.2.13(1) is present or if the taxpayer excludes income. (See Figure 3.11.3-82.)

    Figure 3.11.3-82

    This is an Image: 33440082.gif

    Please click here for the text description of the image.

  10. When wages earned while incarcerated are present or edited on line 8u, edit SPC "J" .

Schedule 1 Line 9 - Total Other Income

  1. If line 9 is blank, dash, or zero, and there are entries on any of lines 8a - 8z, compute by adding lines 8a - 8z and edit the amount to line 9.

  2. Delete an amount on line 9 if it appears the taxpayer used it as a subtotal line for Schedule 1 lines 1-7.

Schedule 1 Line 11, Dotted Portion - Form 982 Indicator

  1. When Form 982 is attached edit the Form 982 Indicator "1" on the dotted portion of line 11.

Schedule 1 Line 11 - Educator Expenses

  1. (Reserved)

Schedule 1 Line 12 - Certain Business Expenses of Reservists, Performing Artists, and Fee Basis Government Officials (Form 2106)

  1. If an amount is present on Schedule 1 line 12 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 2106 must be attached. If missing, correspond for Form 2106.

  2. Edit FPC "P" when Form 2106 is attached.

Schedule 1 Line 13 - Health Savings Account Deduction (Form 8889)

  1. If an amount is present on Schedule 1 line 13, Form 8889 must be attached. If missing, correspond for Form 8889.

Schedule 1 Line 14 - Moving Expenses for Members of the Armed Forces (Form 3903)

  1. If an amount is present on Schedule 1 line 14 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 3903 (or a similar statement) must be attached. If missing, correspond for Form 3903.

Schedule 1 Line 15 - Deductible Part of Self-Employment Tax

  1. (Reserved)

Schedule 1 Line 16 - Self-Employed SEP, SIMPLE, and Qualified Plans

  1. "X" the amount on Schedule 1 line 16 if none of the following are attached to the return:

    • Schedule C

    • Schedule E (Part II present)

    • Schedule F

Schedule 1 Line 17 - Self-Employed Health Insurance Deduction

  1. Edit a misplaced amount from Schedule 1 line 17 to line 15 when both of the following conditions are present:

    • Schedule SE is attached to the return.

    • Line 15 is blank.

Schedule 1 Line 18 - Penalty on Early Withdrawal of Savings

  1. (Reserved)

Schedule 1 Line 19a, 19b and 19c - Alimony Paid, Alimony Recipient's TIN and Date of Divorce

  1. Take the following actions when any amount is present on Schedule 1 line 19a:

    If And Then
    A valid recipient TIN is present Is not the primary or secondary TIN Take no action.
    The taxpayer indicates:
    • "Unable to obtain"

    • "NRA"

    • "SSA-205(c)"

    • "Unknown"

    • "Applied for" or

    • "None"

      Circle the notation
    The recipient TIN is any of the following:
    • illegible

    • same as the P-TIN or S-TIN or

    • Has fewer or more than 9 digits

      Circle the TIN
    Multiple TINs are present, at least one TIN is valid Circle all but the first valid TIN

  2. If Schedule 1 line 19a is zero or blank and the recipient TIN is present on Schedule 1 line 19b, and the sum of deductions from Schedule 1 line 11 through line 25 is equal to the amount on Schedule 1 line 26, circle the recipient TIN.

  3. Edit SPC "4" when there is an amount entered on Schedule 1 line 19a and the date entered on line 19c is later than 12/31/2018.

  4. When an amount is present on line 19a and the date is missing on line 19c, correspond for the missing date. When using Form 3531, mark Box 18 and when using Form 6001, use paragraph P.

Schedule 1 Line 20 - IRA Deduction

  1. "X" the Schedule 1 line 20 amount when the taxpayer writes "rollover" to the left of line 20. Delete the rollover amount if included as income on line 4a Form 1040.

  2. "X" the amount on Schedule 1 line 20 when it is other than $7,000 or $8,000 ($14,000, $15,000, or $16,000 for FS 2), and one of the following indicators and an equal deferred compensation amount appear on Form W-2. (See Figure 3.11.3-83.)

    • "D" or Section 401(k)

    • "E" or Section 403(b)

    • "F" or Section 408(k)(6)

    • "G" or Section 457(b)

    • "Q" or "Housing/Subsistence" or "Combat Pay"

    • "S" or "SIMPLE" plan

    • "T" or employer-paid "qualified adoption expenses"

    • Section 125, Cafeteria Plan (CAF)

    • Section 414(h), Mandatory Salary Deferral ("PERS" Public Employees Retirement System)

    • Thrift Savings Plan or "TSP"

    Figure 3.11.3-83

    This is an Image: 33440083.gif

    Please click here for the text description of the image.

Schedule 1 Line 21 - Student Loan Interest Deduction

  1. (Reserved)

Schedule 1 Line 22 - Reserved

  1. (Reserved)

Schedule 1 Line 23 - Archer MSA Deduction

  1. When found elsewhere on the return, delete any amount identified as "MSA" or "Archer MSA Deduction" . Edit the amount in dollars only to Schedule 1 line 23.

Schedule 1 Lines 24a through Line 24z - Other Adjustments (Not Transcribed)

  1. Delete the following adjustments from Schedule 1 lines 11 through 23 and edit the amount to Schedule 1 line 25.

    • "403(b)" - Contributions by certain chaplains to section 403(b) plans

    • "501(c)(18)(D)"

    • "ED67(e)" (TY18 and later)

    • "UDC" - Legal fees for Unlawful Discrimination Claims

    • "WBF" - Whistle Blower Fees

    • "Jury Pay" - Jury Duty Pay

    • "USOC" - deduction for Olympic and Paralympic medals and prize money

    • "PPR" - Personal Property Rental

    • "Reforestation," "RFST" - Forestation/reforestation amortization

    • "Sub-Pay TRA" - Repayment of Supplemental Unemployment Benefit (SUB) payments received in a prior year under the Trade Act of 1974 (TRA)

      Exception:

      "X" the SUB pay amount where found and subtract the amount from line 1 Form 1040 when there is no indication the adjustment is for benefits received in a prior year.

    • "DPAD" - Domestic Production Activity Deduction

  2. Delete these adjustments where found and edit the amount to Schedule 1 line 25 when any of the adjustments in (1) are claimed elsewhere on the return.

  3. If there is an entry on line 24j, follow instruction in IRM 3.11.3.6.2.13 to route as an international return.

  4. "X" the amount on line 25 if a taxpayer claims an adjustment to income on Schedule 1 line 24z for anything other than the items listed in (1) above.

  5. "X" the amount on line 25 when there is no explanation present for an adjustment amount on line 24z.

Schedule 1 Line 25 - Total Other Adjustments

  1. If line 25 is blank and there are entries on any of lines 24a - 24z, compute by adding lines 24a - 24z and edit the amount to line 25.

Schedule 1 Line 26 - Total Adjustment to Income

  1. When an amount is present on line 26 and lines 11 through line 25 are blank, perfect in the following priority:

    1. If Schedule 1 line 26 is one-half of the amount on Schedule 2 line 4, edit the line 26 amount on Schedule 1 line 15 as an SE tax deduction.

    2. Perfect Schedule 1 lines 11 through 25 from attachments, if available.

    3. If the amount on Schedule 1 line 26 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and you are unable to perfect lines 11 through line 25 using the steps above and no explanation is present, correspond for an explanation of line 26 amount. For Form 6001, check box O. For Form 3531, check box 19-20.

Schedule 2 - Additional Taxes

  1. The instructions in this subsection of the manual are for editing Schedule 2.

  2. Edit Sequence Number "02" in the upper-right margin of Schedule 2 if not preprinted.

  3. If only Schedule 2, page 2 is attached, with T-lines present or edited, edit Sequence Number "02" in the upper-right margin of Schedule 2, page 2.

  4. The following are the T-Lines and T-Compute Lines on Schedule 2:

    T-Lines T-Compute Lines
    • Lines 1a-1y

    • Line 1e Checkboxes

    • Line 1f Checkboxes

    • Line 2

    • Line 4

    • Lines 7-16

    • Line 18

    • Line 19

    • Line 20

    • Line 7

    • Line 18

  5. Lines 1a through 3 are for tax and lines 4 through 21 are for other taxes.

  6. Only one Schedule 2 can be processed. If more than one is attached, combine related T-line amounts onto one schedule and delete those schedules not used.

  7. "X" Schedule 2 if there are no significant T-line entries present or edited on Schedule 2.

    Exception:

    Do not "X" Schedule 2 if Schedule 3 is attached and has significant T-line entries present or edited.

Schedule 2 Line 1a - Excess Advance Premium Tax Credit Repayment (Form 8962)

  1. If an amount is present on Schedule 2 line 1a, Form 8962 must be attached. If missing, correspond for Form 8962.

  2. If using Form 6001 to correspond for missing Form 8962, also:

    1. Request Form 1095–A, if not attached, using paragraph (d).

    2. Edit Action Code "224" .

  3. If using Form 3531 to correspond for missing Form 8962, include fill-in 31 if Form 1095-A is not attached, per Exhibit 3.11.3-18.

Schedule 2 Line 1b - Repayment of Clean Vehicle Credits (Form 8936)

  1. If an amount is present on Schedule 2 line 1b, Form 8936 must be attached. If missing, correspond for Form 8936.

Schedule 2 Line 1c - Repayment of Previously Owned Clean Vehicle Credits (Form 8936)

  1. If an amount is present on Schedule 2 line 1c, Form 8936 must be attached. If missing, correspond for Form 8936.

Schedule 2 Line 1d - Net EPE Recapture (Form 4255)

  1. If an amount is present on Schedule 2 line 1d, Form 4255 must be attached. If missing, correspond for Form 4255.

Schedule 2 Line 1e - Excessive Payments Amount (Form 4255)

  1. If an amount is present on Schedule 2 line 1e, Form 4255 must be attached. If missing, correspond for Form 4255.

Schedule 2 Line 1e Checkboxes - Excessive Payments Checkbox Code (Form 4255)

  1. (Reserved)

Schedule 2 Line 1f - Chapter 1 Tax Amount (Form 4255)

  1. If an amount is present on Schedule 2 line 1f, Form 4255 must be attached. If missing, correspond for Form 4255.

Schedule 2 Line 1f Checkboxes - Chapter 1 Tax Checkbox Code (Form 4255)

  1. (Reserved)

Schedule 2 Line 1y - Other Additions to Tax

  1. (Reserved)

Schedule 2 Line 2- Alternative Minimum Tax (Form 6251)

  1. If an amount is present on Schedule 2 line 2, Form 6251 must be attached. If missing, correspond for Form 6251.

    Reminder:

    Edit FPC "5" when Form 6251 is attached.

Schedule 2 Line 3 - Total

  1. (Reserved)

Schedule 2 Line 4 - Self-Employment Tax (Schedule SE)

  1. If an amount is present on line 4, Schedule SE is required. If not attached, dummy Schedule SE from Schedule C, Schedule E (Part II present), or Schedule F, or attachments, if possible. Otherwise, correspond. When corresponding use paragraph W, Form 6001.

    Exception:

    Do not dummy Schedule SE if corresponding for other missing attachments. Instead, include the request for Schedule SE in the correspondence to the taxpayer.

  2. Edit RPC "S" and RPC "B" when there is no significant entry present or edited on line 4 and there is an indication of any of the following:

    1. The taxpayer is not liable for SE tax.

    2. Form 4361 or Form 4029 is noted.

    3. "Exempt" , "Exempt-Notary," "Amish," or "Mennonite" is noted in the line 4 area.

    Exception:

    Do not edit RPC "S" if FS 2 and the spouse has self-employment income of $434 or more and is liable for SE tax.

Schedule 2 Line 7 - Total Additional Social Security and Medicare Tax (Form 4137 or Form 8919)

  1. If an amount is present on line 7, Form 4137 or Form 8919 must be attached. If Form 4137 or Form 8919 is missing, take the following actions:

    If Then
    Attachments are present, Dummy Form 4137 or Form 8919.
    "Uncollected SST/Medicare" is noted, or the line 6 amount matches one or any combination of amounts with indicators "A" , "B" , "M" and/or "N" on attached Forms W-2,
    1. "X" the line 7 amount.

    2. Edit the amount to line 13.

    Amount is present on line 5, Correspond for Form 4137. For Form 6001, use paragraph W.
    Amount is present on line 6 Correspond for Form 8919. For Form 6001, use paragraph W.
    Amount is present on line 7 and lines 5-6 are blank. Correspond for explanation of entry. For Form 6001, check box O. For Form 3531, check box 19-20.

  2. If line 7 is blank, dash, or zero and there are any entries on lines 5 or 6, compute and edit line 7 by adding line 5 and line 6.

Schedule 2 Line 8 - Additional Tax on IRAs, Other Qualified Retirement Plans, and Other Tax Favored Accounts (Form 5329)

  1. If an amount is present on line 8, Form 5329 must be attached. If missing, correspond for Form 5329, if corresponding with Form 6001, use paragraph W.

  2. Edit RPC "3" and do not correspond if Form 5329 is not present and any of the following conditions apply:

    1. The taxpayer has checked the box to the left of line 8.

    2. The taxpayer noted "No" to the left of line 8.

    3. Line 8 has an entry that is 10% of any combination of the following:

    • Line 4b, Form 1040

    • Line 5b, Form 1040

    • Form 1099-R

    Example:

    Do not correspond if line 4b Form 1040 has an amount of $9,805 and the line 8 amount is $980 or $981.

  3. Edit the totals of Parts I through IX of Form(s) 5329 when line 8 is blank and Form 5329 is attached with entries present.

Schedule 2 Line 9 - Household Employment Taxes from Schedule H

  1. If an amount is present on line 9, Schedule H must be attached. If missing, correspond for Schedule H.

Schedule 2 Line 11 - Additional Medicare Tax - (Form 8959)

  1. When an amount is present on line 11, Form 8959 must be attached. If missing, correspond for Form 8959.

Schedule 2 Line 12 - Net Investment Income Tax - (Form 8960)

  1. When an amount is present on line 12, Form 8960 must be attached. If missing, correspond for Form 8960.

Schedule 2 Line 13 - Uncollected Social Security and Medicare or RRTA Tax on Tips

  1. UT/UTOT or COBRA is reported on Schedule 2, line 13. If found elsewhere on the return, delete where found and edit to line 13 or renumber to be line 13 as appropriate.

Schedule 2 Line 16 - Recapture Low-Interest Housing Credit (Form 8611)

  1. If an amount is present on line 16, Form 8611 must be attached. If Form 8611 is missing and the amount on line 16 is ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond for Form 8611.

Schedule 2 Lines 17a through 17z - Other Additional Taxes (Not Transcribed)

  1. Use the following information for editing other additional taxes.

Schedule 2 Line 17c - Additional Tax on HSA Distributions (Form 8889)
  1. If an amount is present on line 17c, Form 8889 must be attached. If Form 8889 is missing and the amount on line 17c is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond for Form 8889.

Schedule 2 Line 17d - Additional Tax on HSA Distributions, Not Eligible (Form 8889)
  1. If an amount is present on line 17d, Form 8889 must be attached. If Form 8889 is missing and the amount on line 17d is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond for Form 8889.

Schedule 2 Line 17e - Archer MSA Distributions (Form 8853)
  1. If an amount is present on line 17e, Form 8853 must be attached. If Form 8853 is missing, correspond for Form 8853.

Schedule 2 Line 17f - Medicare Advantage MSA Distributions (Form 8853)
  1. If an amount is present on line 17f, Form 8853 must be attached. If Form 8853 is missing, correspond for Form 8853.

Schedule 2 Line 17z - Other Taxes
  1. If the taxpayer has written "Section 1291 Interest" , "1291INT" , "Section 1294 Interest" , or "1294INT" , with an amount:

    1. In the line 17z area and included the amount in the total on line 18, take no action.

    2. Anywhere else on the return and you can determine the amount is not included on line 17z, add the amount to line 18.

  2. If the taxpayer has written "PWA8933" or "PWA7210" and an amount is present on line 17z, edit RPC "9" .

Schedule 2 Line 18 - Total Additional Taxes

  1. If line 18 is blank, dash or zero and there are entries on any lines 17a through 17z, compute by adding lines 17a through 17z and edit the total amount to line 18.

Schedule 2 Line 19 - Net EPE Recapture (Form 4255)

  1. If an amount is present on Schedule 2 line 19, Form 4255 must be attached. If missing, correspond for Form 4255.

Schedule 2 Line 20 - Section 965 Net Tax Liability Installment (Form 965-A)

  1. If an amount is present on line 20, edit RPC "F" .

  2. If an amount is present on line 20, Form 965-A must be attached. However, if missing, correspond for Form 965-A only if corresponding for other missing information.

    Note:

    Do not edit RPC "F" when Form 965-A is attached without an entry on line 20, Schedule 2, unless an amount is present elsewhere (line 8z, Schedule 1 or line 13z, Schedule 3).

Schedule 2 Line 21 - Total Other Taxes

  1. (Reserved)

Schedule 3 - Additional Credits and Payments

  1. The instructions in this subsection of the manual are for editing Schedule 3.

  2. Edit Sequence Number "03" in the upper-right margin of Schedule 3 if not preprinted.

  3. The following lines are T-Lines and T-Compute Lines on the Schedule 3:

    T-Lines T-Compute Lines
    • Lines 1 through 4

    • Lines 5a - 5b

    • Lines 6a through 6d

    • Line 6e (TY21-TY22 only)

    • Lines 6f - 6g

    • Lines 6h through 6l (first line with an amount present)

    • Line 6m

    • Line 7

    • Lines 9 through 12

    • Line 13a

    • Line 13b

    • Line 13c

    • Line 14

    • Line 7

    • Line 14

  4. Lines 1 through 8 are for non-refundable credits and lines 9 through 15 are for other payments and refundable credits.

  5. "X" Schedule 3 if there are no significant T-line entries present or edited on Schedule 3.

  6. Only one Schedule 3 can be processed. If more than one is attached, combine related T-lines and delete those schedules not being used.

Schedule 3 Line 1 - Foreign Tax Credit (Form 1116)

  1. If an amount is claimed on line 1 of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 1116 or similar statement must be attached. If missing or if Form 1116 has no significant entries present or edited on line 7, 8, 24 or 35, correspond for Form 1116.

Schedule 3 Line 2 - Credit for Child and Dependent Care Expenses (Form 2441)

  1. If an amount is claimed on line 2, Form 2441 or a statement must be attached.

    1. Prepare a dummy Form 2441 when it is missing, and a statement is present.

    2. Correspond when Form 2441 cannot be dummied.

Schedule 3 Line 3 - Education Credits (Form 8863, line 19)

  1. If an amount is claimed on line 3, Form 8863 must be attached. If missing correspond for Form 8863.

    Note:

    If the taxpayer has an entry on both Schedule 3 line 3 and Form 1040 line 29, correspond for only one missing Form 8863. Use the first entry amount and line number on the return.

  2. "X" line 3 if either of the following apply:

    • FS is 3 or 6

    • Taxpayer claimed both American Opportunity Credit and Lifetime Learning Credit for the same person on Form 8863.

Schedule 3 Line 4 - Retirement Savings Contribution Credit (Form 8880)

  1. If an amount is claimed on line 4, Form 8880 must be attached. If missing, correspond for Form 8880.

  2. If the amount on line 4 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the return has been hand-written/hand-prepared, "X" the amount.

Schedule 3 Line 5a - Residential Clean Energy Credit (Form 5695, Line 15)

  1. If an amount is claimed on line 5a, Form 5695 must be attached. If missing, correspond for Form 5695.

    Note:

    If an amount is claimed on line 5a and only pages 2 or 3 Form 5695 is attached, delete the amount on line 5a.

Schedule 3 Line 5b - Energy Efficient Home Improvement Credit (Form 5695, Line 32)

  1. If an amount is claimed on line 5b, Form 5695 must be attached. If missing, correspond for Form 5695.

    Note:

    If an amount is claimed on line 5b and pages 1 or 2 Form 5695 are attached and page 3 is missing, delete the amount on line 5b.

Schedule 3 Line 6a through Line 6z- Nonrefundable Credits

  1. Use the instructions in the following subsections for editing lines 6a - 6z.

Schedule 3 Line 6a - General Business Credit (Form 3800)
  1. If an amount is present on line 6a, Form 3800 must be attached. If missing, correspond for Form 3800.

Schedule 3 Line 6b - Credit for Prior Year Minimum Tax (Form 8801)
  1. If an amount is present on line 6b, Form 8801 must be attached. If missing, correspond for Form 8801.

Schedule 3 Line 6d - Credit for the Elderly or Disabled (Schedule R)
  1. If an amount is present on line 6d, Schedule R must be attached. If missing, correspond for Schedule R.

  2. If "CFE" is notated and Schedule R is not attached, correspond with Form 3531/6001 using fill-in 28, per Exhibit 3.11.3-18.

  3. Take no additional action when the taxpayer has written DFAS-705 in the line 6 area.

Schedule 3 Line 6e
  1. Reserved. See prior year instructions at IRM 3.11.3.73.3.4.2(4).

Schedule 3 Line 6f - Clean Vehicle Credit (Form 8936, Line 13)
  1. If an amount is present on line 6f, Form 8936 and Form 8936 Schedule A, must be attached. If missing, correspond for Form 8936 and/or Form 8936 Schedule A.

Schedule 3, Line 6g - Mortgage Interest Credit (Form 8396)
  1. If an amount is present on line 6g, Form 8396 must be attached. If missing, correspond for Form 8396.

Schedule 3, Line 6m - Credit for Previously Owned Clean Vehicle (Form 8936, Line 18)
  1. If an amount is present on line 6m, Form 8936 and Form 8936 Schedule A, must be attached. If missing, correspond for Form 8936 and/or Form 8936 Schedule A.

Schedule 3 Line 7 - Total Other Nonrefundable Credits

  1. If line 7 is blank, dash or zero and there are entries on any lines 6a - 6z, compute by adding lines 6a - 6z and edit the amount on line 7.

Schedule 3 Line 9 - Net Premium Tax Credit (Form 8962)

  1. If an amount is claimed on line 9, Form 8962 must be attached. If missing, correspond for Form 8962.

  2. If using Form 6001 to correspond for missing Form 8962, also:

    1. Request Form 1095–A, if not present, using paragraph (d).

    2. Edit Action Code "224" .

  3. If using Form 3531 to correspond for missing Form 8962, include fill-in 31 if Form 1095-A is not attached, per Exhibit 3.11.3-18.

Schedule 3 Line 10 - Amount paid with request for extension (Form 4868)

  1. Do not perfect line 10 from an attached Form 4868. Include on line 10 an amount the taxpayer indicates as a payment from Form 2350, Application for Extension of Time to File U.S. Income Tax Return.

  2. Edit CCC "Y" and an Action Trail when 1040-C is written by line 10 or when Form 1040-C is attached.

Schedule 3 Line 11 - Excess Social Security and Tier 1 RRTA Tax Withheld

  1. Take no action when an amount of $5 or less is claimed.

  2. "X" an amount of greater than $5 on line 11 when the amount claimed on Form 1040, line 1a is less than:

    • $168,600 and excess SST is claimed.

    • $168,600 and excess Tier 1 RRTA is claimed.

  3. When an amount is present on line 11 and "RRTA" /"Tier 1 RRTA" is noted or there is an indication the taxpayer is a railroad employee:

    1. Accept the taxpayer's figure for excess Tier 1 RRTA, if Forms W-2 or similar statements from more than one employer are attached and such Forms W-2 or similar statements show the excess.

    2. When only one Form W-2 or similar statement is attached and the wage amount on Form W-2 or similar statement is greater than or equal to the amount on line 1a Form 1040, "X" line 11 Schedule 3.

    3. When no Form W-2 or similar statement is attached, correspond if using Form 6001 use fill-in 9, per Exhibit 3.11.3-18, if using Form 3531 check box 8.

  4. When an excess SST amount is present on line 11:

    1. If no Form W-2 or similar statement is attached, correspond if using Form 6001 use fill-in 9, per Exhibit 3.11.3-18, if using Form 3531 check box 8.

      Exception:

      Research IRP (when available) before corresponding. Do not research if corresponding for other missing information.

    2. If any single Form W-2 or similar attached statement shows an amount for Social Security tax withheld of more than $10,453.20, "X" the amount.

      Note:

      If the taxpayer has separate Forms W-2 with the same EIN, allow the excess SST/RRTA tax if "agent for [name of employer]" is listed in box "c" of Forms W-2 and the Forms W-2 have the same EIN, consider the Forms W-2 to be from different employers. You may also look for pay stub or Form 4852.

    3. Otherwise, use the following table to compute the excess SST amount.

      Note:

      For FS 2, compute the excess SST amount for each taxpayer separately. Compare the combined amounts to the entry on line 11.

    VERIFY EXCESS SOCIAL SECURITY TAX Primary Taxpayer Secondary Taxpayer
    1. Add all social security tax withheld for each employer. This tax is shown in box 4, Form W-2. Enter the total here. __________ __________
    2. Enter any uncollected social security tax on tips from W-2, Box 12, Codes A & M. __________ __________
    3. Add lines 1 and 2. __________ __________
    4. Social security limit $10,453.20 $10,453.20
    5. Subtract line 4 from line 3. Enter the result here (if the result is negative, enter zero here.) __________ __________
    6. Excess amount. Combine Primary and Secondary taxpayers line 5 amount. ______________

  5. Add the amounts for wages, tips, and other compensation on all Forms W-2 when the total excess SST computed amount differs from line 11 entry by more than $5. (See Figure 3.11.3-84.)

    1. "X" line 11 and edit the computed amount when all Forms W-2 are attached.

      Note:

      All Forms W-2 are considered to be attached when the combined wage amount from Forms W-2 is greater than or equal to the entry on line 1a, Form 1040.

    2. When FS 2 and all Forms W-2 are attached, "X" Schedule 3 line 11 if neither taxpayer is eligible for excess SST.

    3. When Forms W-2 are not all attached and you are unable to verify the amount through research, correspond for additional Forms W-2 to support line 11. If using Form 6001 use fill-in 9, per Exhibit 3.11.3-18, if using Form 3531 check box 8

    Note:

    Do not research if corresponding for other missing information.

    Figure 3.11.3-84

    This is an Image: 33440084.gif

    Please click here for the text description of the image.

Schedule 3 Line 12 - Credit for Federal Tax on Fuels (Form 4136)

  1. If an amount is claimed on line 12, Form 4136 must be attached. If missing, correspond for Form 4136.

    Note:

    If Fuel Tax Credits, "FTC" , or similar is noted on Schedule 3, line 13z, Form 4136 must also be attached. Do not move the entry but correspond for missing Form 4136.

Schedule 3 Lines 13a - 13z - Other Payments and Refundable Credits

  1. Use the instructions in the following subsections for editing lines 13a -13z.

Schedule 3 Line 13a - Form 2439
  1. If an amount of ≡ ≡ ≡ ≡ ≡ ≡ ≡ from Form 2439 is present on line 13a, Form 2439 must be attached. If not attached correspond using fill-in "10" , per Exhibit 3.11.3-18.

    Note:

    Form 2439 is a small form, generally found stapled to the front of the return with the Form(s) W-2. Form 2439 may reflect more than a single tax year and should not be treated as a combined tax liability.

    Caution:

    Check all attached Forms 2439 for an indication of "Reparation for African Americans," "Black Investment Taxes," or similar statements. These claims will be treated as Frivolous Returns. Follow the instructions in IRM 3.11.3.6.1.6.

Schedule 3 Line 13b - Credit for Repayment
  1. Reserved.

Schedule 3 Line 13c - Elective Payment Election (EPE)
  1. If an amount is present, Form 3800 must be attached. If missing, correspond for Form 3800.

Schedule 3 Line 13z
  1. If Fuel Tax Credit, FTC, or something similar is noted on line 13z, see IRM 3.11.3.17.12.

Schedule 3 Line 14 - Total Other Payments and Refundable Credits

  1. Compute line 14 if blank, dash or zero and there are entries on any lines 13a through 13z. Add lines 13a - 13z and edit the total to line 14.

Schedule 3 Line 15

  1. (Reserved)

Schedule A - Itemized Deductions

  1. The instructions provided in this subsection of the manual are for editing Schedule A. These instructions include:

    • General editing procedures

    • Medical and dental expenses

    • Total taxes

    • Interest

    • Gifts to Charity

    • Casualty/theft loss

    • Other miscellaneous deductions

    • Total itemized deductions

    • Unallowable Codes

  2. Edit Sequence Code "07" in the upper-right margin of Schedule A if not preprinted.

  3. Only one Schedule A is processable. If more than one is attached, combine related T-line amounts onto one Schedule A and delete those not used.

  4. Do not"X" Schedule A when both of the following conditions are present:

    1. FS is 3 (Married Filing Separately) and the taxpayer claimed zero itemized deductions, and

    2. Schedule A is blank.

  5. Search Schedule A for unallowables. Code unallowables regardless of where they are found, so long as they meet the tolerance. Specific unallowable conditions are identified in the line-by-line instructions, as well as the table in the following paragraph.

    Note:

    Unallowable Codes in the 30-42 and 44-49 range are reserved for amounts claimed on Schedule A. Unallowable Code 43 can be used for amounts claimed on Schedule A and Schedule C.

  6. Dollar tolerances apply to all Schedule A Unallowable Codes. Code unallowables only when the total deducted amount (i.e., amount after any limitation) of the unallowable item is at least the dollar tolerance reflected in the table below. Code itemized deductions as unallowables only when the Schedule A is used and the amount for the unallowable item is at least ≡ ≡ ≡ ≡ ≡.

    Reminder:

    Edit amounts on Form 3471 in dollars only.

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

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

    Exception:

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

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

    Exception:

    ≡ ≡ ≡ ≡

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

    Note:

    Do not code unallowables under the reflected dollar tolerance.

  7. Review all returns with edited unallowables. Check for additional unallowables or frivolous conditions. Correct any unallowables which have been improperly coded.

Schedule A, General Editing Procedures

  1. The following lines on Schedule A are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Line 1

    • Line 3

    • Line 4

    • General Sales Tax Checkbox

    • Lines 5a through 5c

    • Lines 6 through 7

    • Lines 8a through 8c

    • Lines 9 through 17

    • Line 18 Checkbox

    • Line 4

    • Line 7

    • Line 10

    • Line 14

    • Line 17

  2. "X" Schedule A when line 17 on Schedule A is less than line 12 of Form 1040 and line 12 is equal to the taxpayer's standard deduction amount unless any of the following apply:

    1. "IE" is indicated to the left of line 12 on Form 1040.

    2. FS 3 is claimed, and there are significant T-line entries on the Schedule A. The box on Form 1040 "Spouse itemizes on a separate return" , may or may not be marked.

    3. The box located on line 18, Schedule A is checked.

  3. Do not dummy a Schedule A from attachments when the taxpayer used one of the standard deduction amounts. Use the Standard Deduction Chart in IRM 3.11.3.14.2.20(1) for the standard deduction amounts.

Lines 1 and 4 - Medical and Dental Expenses
  1. If line 1 is blank and line 4 has a significant entry, edit line 1 from attachments.

  2. If lines 1 and 4 are both blank and there is an attachment with an amount for medical deductions present, edit the attachment amount to:

    1. Line 1 if line 3 has been computed by the taxpayer or

    2. Line 4 if line 3 has not been computed by the taxpayer.

  3. Compute and edit the total when line 4 is blank, and lines 1 and 3 have entries.

  4. Edit Unallowable Code "33" and the lesser of the unallowable amount or the line 4 amount when the taxpayer claims personal living expenses incidental to medical treatment more than ≡ ≡ ≡ ≡ ≡. Unallowable items include:

    • Meals

    • Lodging more than $50 per day per person

    • Health club dues

    • Diet foods

    • Funeral expenses

    • Maternity clothes

Line 6- Other Taxes
  1. Delete the amount if the taxpayer used line 6 as a subtotal line.

Line 7 - Total Taxes
  1. Compute and edit if blank.

  2. Correspond for an explanation if line 7 has a dollar amount and lines 5a through 6 are blank. If using Form 6001, use box "O" , if using Form 3531, use box 19-20.

  3. Edit Unallowable Code"34" and the amount claimed if the taxpayer claims a deduction for Federal taxes of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Unallowable items include Federal taxes for:

    • Income

    • Social Security

    • Medicare

    • Excise tax on autos, tires and air transportation

    • Duties imposed on imports or by Customs

  4. Edit Unallowable Code"35" and the amount claimed when there is an amount for utility taxes of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Examples include sewer, water, phone, etc.

    Exception:

    This does not include sales taxes paid on utilities in Minnesota and Wisconsin.

  5. Edit Unallowable Code"36" and the amount claimed if there is an amount for state and local taxes of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Examples include hotel, meal, airfare, inheritance, stamp, etc.

  6. Edit Unallowable Code"37" and the amount claimed if the taxpayer is claiming a deduction of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for personal auto registration, tag and license taxes or fees except for residents of any of the following states:

    State List
    Alabama Kentucky Nevada
    Arizona Maine New Hampshire
    California Massachusetts Oklahoma
    Colorado Michigan South Carolina
    Connecticut Minnesota Virginia
    Georgia Mississippi Washington
    Indiana Montana Wyoming
    Iowa Nebraska  

Line 8a and 8b - Home Mortgage Interest and Points
  1. When the taxpayer enters amounts in the line 8 area, take the following actions:

    If And Then
    Line 8a is blank, The taxpayer clearly identified an amount(s) to be home mortgage, Edit the amount to line 8a.
    Line 8b is blank, The taxpayer clearly identified an amount(s) has been paid to an individual or individuals, Edit the amount to line 8b.

Line 9 - Investment Interest
  1. Delete the amount if the taxpayer used line 9 as a subtotal line.

Line 10 - Total Interest
  1. Compute and edit line 10 when it is blank.

  2. If an amount is entered and no entries are present on lines 8a through 9, take one of the following actions:

    1. Edit the line 10 amount to line 8a if there is an amount on line 5b of Schedule A.

    2. Correspond for an explanation of the line 10 amount if line 5b on Schedule A is blank. If using Form 6001, use box O, if using Form 3531 use box 19-20.

  3. Edit Unallowable Code "41" and the amount claimed if there is an amount for personal interest paid of ≡ ≡ ≡ ≡ ≡ or more.

Lines 11, 12, 13, and 14 - Gifts to Charity
  1. Take the following actions for a claim on line 12, Schedule A:

    If And Then
    A] Schedule A, line 12, is more than $500, Form 8283 is attached with significant entries or a statement supporting attached Form 8283, Edit RPC "H" .
    A] Schedule A, line 12, is more than $500, Form 8283 is missing, or attached with no significant entries or supporting statement, Correspond for Form 8283. If using Form 6001, use box "I" , if using Form 3531, use box 11-14.
    A] Schedule A, line 12, is more than $500, Form 8283 indicates donation of an automobile, airplane or boat, Form 1098-C must also be present. If Form 1098-C is not atta