3.11.3 Individual Income Tax Returns 3.11.3.1 Program Scope and Objectives 3.11.3.1.1 Background 3.11.3.1.2 Authority 3.11.3.1.3 Responsibilities 3.11.3.1.4 Program Objectives and Review 3.11.3.1.5 Terms/Definitions/Acronyms 3.11.3.1.6 Related Resources 3.11.3.2 General Guidelines 3.11.3.2.1 Programs Worked 3.11.3.2.2 Identifying "Numbered" and "Unnumbered" Returns 3.11.3.2.2.1 Document Locator Number (DLN) 3.11.3.2.3 Routing Completed Work 3.11.3.3 General Instructions 3.11.3.3.1 Stamping Tax Examiner (TE) Numbers 3.11.3.3.2 Transcription Lines (T-Lines) and Transcription Compute Lines (T-Compute Lines) 3.11.3.3.3 Transcribed Schedules and Forms 3.11.3.3.4 Internal-Use Forms 3471 and 4227 3.11.3.3.4.1 Form 3471 - Edit Sheet 3.11.3.3.4.2 Form 4227 - Intra-SC Reject or Routing Slip 3.11.3.3.5 Action Trail 3.11.3.3.6 Attachments to Return 3.11.3.3.6.1 Detached Documents 3.11.3.3.7 Processing Codes 3.11.3.3.7.1 Action Code 3.11.3.3.7.2 Audit Code 3.11.3.3.7.3 Computer Condition Code (CCC) 3.11.3.3.7.4 Return Processing Code (RPC) 3.11.3.3.7.5 Special Processing Code (SPC) 3.11.3.3.7.6 Unallowable Code (UAC) 3.11.3.4 Editing 3.11.3.4.1 Edit Markings, General 3.11.3.4.2 Types of Edit Markings 3.11.3.4.2.1 Circling 3.11.3.4.2.2 Underlining 3.11.3.4.2.3 Arrowing 3.11.3.4.2.4 "X" -ing 3.11.3.4.2.5 Bracketing 3.11.3.4.2.6 Checking 3.11.3.4.2.7 Edit Marks Made by Other IRS Functions 3.11.3.4.3 Dollars and Cents Editing 3.11.3.5 Correspondence 3.11.3.5.1 General Correspondence Information 3.11.3.5.2 General Correspondence Procedures 3.11.3.5.2.1 Correspondence When Sending Return Back to the Taxpayer 3.11.3.5.2.2 Correspondence When Not Sending Return Back to the Taxpayer 3.11.3.5.3 General Response Procedures 3.11.3.5.3.1 Reply Instructions 3.11.3.5.3.2 No Reply/Incomplete Reply/Undeliverable Correspondence 3.11.3.6 Special Situations and Returns 3.11.3.6.1 Special Situations 3.11.3.6.1.1 Combat Zone and Other Military Operations 3.11.3.6.1.1.1 Military Operations 3.11.3.6.1.1.2 Correspondence on Military Operation/Combat Zone Returns 3.11.3.6.1.2 Killed in Terrorist Action (KITA) 3.11.3.6.1.3 Natural Disaster/Emergency Relief Program 3.11.3.6.1.4 Taxpayer Advocate Service (TAS) 3.11.3.6.1.5 Examination Cases 3.11.3.6.1.6 Frivolous Filer/Non-Filer Returns 3.11.3.6.1.7 Identity Theft 3.11.3.6.1.8 Suicide Threats 3.11.3.6.2 Special Returns 3.11.3.6.2.1 Amended Returns 3.11.3.6.2.1.1 Amended Joint MFA or MFS Return 3.11.3.6.2.2 Unprocessable Return 3.11.3.6.2.3 Blank Return 3.11.3.6.2.4 Incomplete Return 3.11.3.6.2.5 Uncomputed Return 3.11.3.6.2.6 Blocked or Deferrable Income Return 3.11.3.6.2.7 Correspondence Imaging System (CIS) Returns 3.11.3.6.2.8 Combined Tax Liability Return 3.11.3.6.2.9 Community Property or Registered Domestic Partnership Return 3.11.3.6.2.10 Form 8938, Statement of Foreign Financial Assets 3.11.3.6.2.11 Form 8379, Injured Spouse Allocation Return 3.11.3.6.2.12 Form 8857, Innocent Spouse Relief Request 3.11.3.6.2.13 International Return 3.11.3.6.2.14 Joint Committee Return 3.11.3.6.2.15 Misblocked Return 3.11.3.6.2.16 Misfiled Return 3.11.3.6.2.17 Reinput Return 3.11.3.6.2.18 Returns Secured by Collection 3.11.3.6.2.19 Short Period Return 3.11.3.6.2.20 Substitute for Return (SFR) 3.11.3.6.2.20.1 Automated Substitute for Return (ASFR) 3.11.3.6.2.21 52-53 Week Return 3.11.3.6.2.22 Blind Trust Returns 3.11.3.7 Tax Period 3.11.3.7.1 Tax Period, General Instructions 3.11.3.7.2 Current Calendar Year Return 3.11.3.7.3 Fiscal Year Return 3.11.3.7.4 Prior Year Return 3.11.3.7.5 Early Filed Return 3.11.3.8 Received Dates 3.11.3.8.1 Received Dates, General Instructions 3.11.3.8.2 Determining the Received Dates 3.11.3.8.2.1 Types of Received Dates 3.11.3.8.2.2 Post Office Marks 3.11.3.8.2.3 Private Delivery Service (PDS) Marks 3.11.3.8.3 Timely Filed Returns 3.11.3.8.4 "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" 3.11.3.8.5 Late Filed Returns 3.11.3.8.6 Extensions 3.11.3.8.7 Reasonable Cause 3.11.3.9 Taxpayer Identification 3.11.3.9.1 Caption, General Information 3.11.3.9.2 Caption Editing 3.11.3.9.2.1 Taxpayer Identification Number (TIN) 3.11.3.9.2.1.1 Primary TIN (P-TIN) 3.11.3.9.2.1.2 Secondary TIN (S-TIN) 3.11.3.9.2.2 Name Line and Additional Information Line 3.11.3.9.2.2.1 Name Line 3.11.3.9.2.2.2 Additional Information Line (AIL) 3.11.3.9.2.3 Mailing Address 3.11.3.9.2.3.1 Change of Address (Form 8822) 3.11.3.9.2.3.2 Multiple Addresses 3.11.3.9.2.4 City 3.11.3.9.2.5 State 3.11.3.9.2.6 ZIP Code 3.11.3.9.2.6.1 APO/FPO/DPO Addresses 3.11.3.10 Decedent Return 3.11.3.10.1 Decedent Return, General Instructions 3.11.3.10.2 Name Line on a Decedent Return 3.11.3.10.3 Documentary Evidence on a Decedent Return 3.11.3.10.4 Additional Information Line on a Decedent Return 3.11.3.10.5 Computer Condition Codes for Decedent Returns 3.11.3.10.6 Short Period Decedent Return 3.11.3.11 Fiduciary Relationships 3.11.3.11.1 Documentary Evidence Requirements 3.11.3.11.2 Minor Child 3.11.3.11.3 Power of Attorney (POA) 3.11.3.12 Filing Status (FS) 3.11.3.12.1 Filing Status, General Instructions 3.11.3.12.2 Determining the Filing Status 3.11.3.12.2.1 FS 1 (Single) Box Marked 3.11.3.12.2.2 FS 2 (Married Filing Jointly) Box Marked 3.11.3.12.2.3 FS 3 (Married Filing Separately) Box Marked 3.11.3.12.2.4 FS 4 (Head of Household) Box Marked 3.11.3.12.2.5 FS 5 (Qualifying Widow(er) Box Marked 3.11.3.13 Dependents 3.11.3.13.1 Dependent Coding 3.11.3.13.1.1 Determining Dependent Relationship 3.11.3.13.2 Dependent's Name Control and TIN 3.11.3.13.2.1 Dependent's TIN 3.11.3.13.2.1.1 Adoption TIN 3.11.3.13.2.2 Dependent's Name Control 3.11.3.14 Form 1040 3.11.3.14.1 Form 1040, General Editing Instructions 3.11.3.14.2 Income, Adjustments, and Credits - Lines 1 through 32 3.11.3.14.2.1 Line 1 - Wages 3.11.3.14.2.2 Line 2a -Tax-Exempt Interest (TEI) 3.11.3.14.2.3 Line 2b -Taxable Interest Income 3.11.3.14.2.4 Line 3b - Ordinary Dividends 3.11.3.14.2.5 Lines 4a and 4b - IRAs 3.11.3.14.2.6 Lines 5a and 5b - Pensions and Annuities 3.11.3.14.2.7 Lines 6a and 6b - Social Security Benefits 3.11.3.14.2.8 Line 7 - Capital Gain or Loss 3.11.3.14.2.9 Line 8 - Other Income 3.11.3.14.2.10 Line 9 - Total Income 3.11.3.14.2.11 Line 10a (Not Transcribed) through 10c - Adjustments to Income 3.11.3.14.2.12 Line 11 - Adjusted Gross Income 3.11.3.14.2.13 Line 12 - Standard Deduction or Itemized Deductions (Not Transcribed) 3.11.3.14.2.14 Line 13 - Qualified Business Income Deduction 3.11.3.14.2.15 Line 15 - Taxable Income 3.11.3.14.2.16 Line 16 - Tax 3.11.3.14.2.17 Line 17 - Additional Taxes (Not Transcribed) 3.11.3.14.2.18 Line 20 - Non-Refundable Credits (Not Transcribed) 3.11.3.14.2.19 Line 23 - Other Taxes 3.11.3.14.2.20 Line 24 - Total Tax 3.11.3.14.2.21 Line 25a through 25d - Withholding 3.11.3.14.2.22 Line 26 - Estimated Tax Payments 3.11.3.14.2.23 Line 27 - Earned Income Credit (EIC) 3.11.3.14.2.24 Nontaxable Combat Pay Election 3.11.3.14.2.25 Line 28 - Additional Child Tax Credit (Schedule 8812) 3.11.3.14.2.26 Line 29 - Refundable Education Credit 3.11.3.14.2.27 Line 30 - Recovery Rebate Credit 3.11.3.14.2.28 Line 31 - Other Payments and Credits 3.11.3.14.2.29 Line 32 - Total Other Payments and Refundable Credits 3.11.3.14.2.30 Line 33 - Total Payments 3.11.3.14.3 Refund or Amount Owed - Lines 34 through 38 3.11.3.14.3.1 Line 35a - Refund 3.11.3.14.3.2 Lines 35b, 35c, and 35d - Direct Deposit Information 3.11.3.14.3.3 Line 36 - ES Credit Elect 3.11.3.14.3.4 Line 37- Amount You Owe (Balance Due) 3.11.3.14.3.5 Line38 - Estimated Tax Penalty (Form 2210 or Form 2210-F) 3.11.3.14.4 Third Party Designee 3.11.3.14.5 Signature 3.11.3.14.6 Occupation 3.11.3.14.7 Identity Protection Personal Identification Number (IP PIN) 3.11.3.14.8 Paid Preparer Data 3.11.3.14.8.1 Preparer Code 3.11.3.14.8.2 Preparer TIN (PTIN) 3.11.3.14.8.3 Preparer Phone Number 3.11.3.15 Schedule 1 - Additional Income and Adjustments to Income 3.11.3.15.1 Schedule 1 Line 1 - Taxable Refunds 3.11.3.15.2 Schedule 1 Line 2a and 2b - Alimony Received and Date of Divorce 3.11.3.15.3 Schedule 1 Line 3- Business Income or Loss 3.11.3.15.4 Schedule 1 Line 4 - Other Gains or Losses 3.11.3.15.5 Schedule 1 Line 5- Rents, Royalties, Partnerships, Estates, Trusts, or S Corporations 3.11.3.15.6 Schedule 1 Line 6 - Farm Income or Loss 3.11.3.15.7 Schedule 1 Line 7 - Unemployment Compensation (UEC) 3.11.3.15.8 Schedule 1 Line 8 - Other Income 3.11.3.15.9 Schedule 1 Line 9 - Total Income 3.11.3.15.10 Schedule 1 Line 10 - Educator Expenses 3.11.3.15.11 Schedule 1 Line 11 - Certain Business Expenses of Reservists, Performing Artists, and Fee Basis Government Officials (Form 2106) 3.11.3.15.12 Schedule 1 Line 12 - Health Savings Account Deduction (Form 8889) 3.11.3.15.13 Schedule 1 Line 13 - Moving Expenses for Members of the Armed Forces (Form 3903) 3.11.3.15.14 Schedule 1 Line 14 - Deductible Part of Self-Employment Tax 3.11.3.15.15 Schedule 1 Line 15 - Self-Employed SEP, SIMPLE, and Qualified Plans 3.11.3.15.16 Schedule 1 Line 16 - Self-Employed Health Insurance Deduction 3.11.3.15.17 Schedule 1 Line 17 - Penalty on Early Withdrawal of Savings 3.11.3.15.18 Schedule 1 Line 18a, 18b and 18c - Alimony Paid, Alimony Recipient's TIN and Date of Divorce 3.11.3.15.19 Schedule 1 Line 19 - IRA Deduction 3.11.3.15.20 Schedule 1 Line 20 - Student Loan Interest Deduction 3.11.3.15.21 Schedule 1 Line 21 - Tuition and Fees (Form 8917) 3.11.3.15.22 Schedule 1 Line 22 - Dotted Portion 3.11.3.15.23 Schedule 1 Line 22 - Total Adjustment to Income 3.11.3.16 Schedule 2 - Additional Taxes 3.11.3.16.1 Schedule 2 Line 1 - Alternative Minimum Tax (Form 6251) 3.11.3.16.2 Schedule 2 Line 2 - Excess Advance Premium Tax Credit Repayment (Form 8962) 3.11.3.16.3 Schedule 2 Line 3 - Total 3.11.3.16.4 Schedule 2 Line 4 - Self-Employment Tax (Schedule SE) 3.11.3.16.5 Schedule 2 Line 5 - Unreported Social Security and Medicare Tax (Form 4137 or Form 8919) 3.11.3.16.6 Schedule 2 Line 6 - Additional Tax on IRAs, Other Qualified Retirement Plans, and Other Tax Favored Accounts (Form 5329) 3.11.3.16.7 Schedule 2 Lines 7a and 7b - Household Employment Taxes from Schedule H and First Time Homebuyer Credit Repayment 3.11.3.16.8 Schedule 2 Line 8 - Other Taxes (Form 8959/Form 8960) 3.11.3.16.9 Schedule 2 Line 9 - Section 965 Net Tax Liability Installment (Form 965-A) 3.11.3.16.10 Schedule 2 Line 10 - Total Other Taxes 3.11.3.17 Schedule 3 - Additional Credits and Payments 3.11.3.17.1 Schedule 3 Line 1 - Foreign Tax Credit (Form 1116) 3.11.3.17.2 Schedule 3 Line 2 - Credit for Child and Dependent Care Expenses (Form 2441) 3.11.3.17.3 Schedule 3 Line 3 - Education Credits (Form 8863, line 19) 3.11.3.17.4 Schedule 3 Line 4 - Retirement Savings Contribution Credit (Form 8880) 3.11.3.17.5 Schedule 3 Line 5 - Residential Energy Credit (Form 5695) 3.11.3.17.6 Schedule 3 Line 6 - Other Credits 3.11.3.17.7 Schedule 3 Line 7 - Total Nonrefundable Credits 3.11.3.17.8 Schedule 3 Line 8 - Net Premium Tax Credit (Form 8962) 3.11.3.17.9 Schedule 3 Line 9 - Amount paid with request for extension (Form 4868) 3.11.3.17.10 Schedule 3 Line 10 - Excess Social Security and Tier 1 RRTA Tax Withheld 3.11.3.17.11 Schedule 3 Line 11 - Credit for Federal Tax on Fuels (Form 4136) 3.11.3.17.12 Schedule 3 Line 12a - Form 2439 3.11.3.17.13 Schedule 3 Line 12b - Sick and Family Leave Credits (Schedule H and Form 7202) 3.11.3.17.14 Schedule 3 Line 12d - Other (Not Transcribed) 3.11.3.17.15 Schedule 3 Line 12e - Deferred Taxes (Schedule H or Schedule SE) 3.11.3.17.16 Schedule 3 Line 12f - Total Form 2439 and Other Credits 3.11.3.17.17 Schedule 3 Line 13 - Total Other Payments and Refundable Credits 3.11.3.18 Schedule A - Itemized Deductions 3.11.3.18.1 Schedule A, General Editing Procedures 3.11.3.18.1.1 Lines 1 and 4 - Medical and Dental Expenses 3.11.3.18.1.2 Line 6- Other Taxes 3.11.3.18.1.3 Line 7 - Total Taxes 3.11.3.18.1.4 Line 8a and 8b - Home Mortgage Interest and Points 3.11.3.18.1.5 Line 9 - Investment Interest 3.11.3.18.1.6 Line 10 - Total Interest 3.11.3.18.1.7 Lines 11, 12, 13, and 14 - Gifts to Charity 3.11.3.18.1.8 Line 15 - Casualty and Theft Loss 3.11.3.18.1.9 Line 16 - Other Itemized Deductions 3.11.3.18.1.10 Line 17 - Total Itemized Deductions 3.11.3.18.1.11 Line 18 - Itemized Deduction Election 3.11.3.18.2 Prior Year Schedule A, General Editing Procedures 3.11.3.18.2.1 Taxes 3.11.3.18.2.2 Other Itemized Deductions 3.11.3.19 Schedule B - Interest and Ordinary Dividends - General Procedures 3.11.3.19.1 Schedule B 3.11.3.19.1.1 Lines 1 and 2 - Gross Interest 3.11.3.19.1.2 Line 3 - Excludable Savings Bond Interest 3.11.3.19.1.3 Lines 5 and 6 - Gross Dividends 3.11.3.19.1.4 Line 7a - Foreign Accounts and Trusts 3.11.3.19.1.5 Line 8 - Foreign Trust Question (Not Transcribed) 3.11.3.19.2 Prior Year Schedule B 3.11.3.20 Schedule C - Profit or Loss from Business - General Procedures 3.11.3.20.1 Schedule C 3.11.3.20.2 Combining Multiple Schedules C 3.11.3.20.3 North American Industry Classification System (NAICS) Code 3.11.3.20.4 Line D - Employer Identification Number (EIN) 3.11.3.20.5 Line F - Accounting Method 3.11.3.20.6 Statutory Employee 3.11.3.20.7 Income - Lines 1 through 7 3.11.3.20.7.1 Line 1 - Gross Receipts or Sales 3.11.3.20.7.2 Line 2 - Returns and Allowances 3.11.3.20.7.3 Line 3 - Net Gross Receipts 3.11.3.20.7.4 Line 4 - Cost of Goods Sold 3.11.3.20.7.5 Line 6 - Other Income 3.11.3.20.8 Expenses - Lines 8 through 27b 3.11.3.20.8.1 Line 9 - Car and Truck Expenses 3.11.3.20.8.2 Line 27a - Other Expenses 3.11.3.20.8.3 Line 28 - Total Expenses before Expenses for Home Use 3.11.3.20.8.4 Line 30 - Expenses for Business Use of Home 3.11.3.20.9 Line 32b - "At Risk" Question 3.11.3.20.10 Prior Year Schedule C 3.11.3.21 Schedule D - Capital Gains and Losses - General Procedures 3.11.3.21.1 Schedule D 3.11.3.21.1.1 Line 7 - Column (h), Gain or Loss for Entire Year 3.11.3.21.1.2 Line 15 - Net Long-Term Gain or Loss for Entire Year 3.11.3.21.1.3 Line 18 - 28% Rate Gain 3.11.3.21.1.4 Line 19 - Unrecaptured Section 1250 Gain 3.11.3.21.2 Prior Year Schedule D 3.11.3.22 Form 8949 - Sales and Other Dispositions of Capital Assets 3.11.3.22.1 Prior Year Form 8949 3.11.3.23 Schedule E - Supplemental Income and Loss, General Procedures 3.11.3.23.1 Schedule E 3.11.3.23.1.1 Part I - Income or Loss from Rental Real Estate and Royalties 3.11.3.23.1.1.1 Line 14 - Repairs 3.11.3.23.1.1.2 Lines 23a through 23e - Total Lines 3.11.3.23.1.1.3 Line 24 - Total Income 3.11.3.23.1.1.4 Line 25 - Total Loss(es) 3.11.3.23.1.1.5 Line 26 - Total Rental and Royalty Income or Loss (Not Transcribed) 3.11.3.23.1.2 Part II - Income or Loss from Partnerships and S Corporations 3.11.3.23.1.2.1 Lines 28A through 28D - Column (f), At Risk (Not Transcribed) 3.11.3.23.1.2.2 Lines 29a through 29b - Total Lines 3.11.3.23.1.2.3 Lines 30 and 31 - Total Partnership or S-Corporation Income or Loss Subtotal Lines 3.11.3.23.1.3 Part III - Income or Loss from Estates or Trusts 3.11.3.23.1.4 Part IV - Income or Loss from Real Estate Mortgage Investment Conduits (REMICs) 3.11.3.23.1.4.1 Line 39 - REMIC Income/Loss 3.11.3.23.1.5 Part V - Summary 3.11.3.23.1.5.1 Line 40 - Net Farm Rental Income or Loss from Form 4835 3.11.3.23.1.5.2 Line 42 - Gross Farming and Fishing Income from Form 4835 3.11.3.23.1.5.3 Line 43 - Reconciliation for Real Estate Professionals 3.11.3.23.2 Prior Year Schedule E 3.11.3.24 Schedule F - Profit or Loss from Farming 3.11.3.24.1 Schedule F - General Editing Procedures 3.11.3.24.2 Combining Multiple Schedules F 3.11.3.24.3 Line B - North American Industry Classification System (NAICS) Code 3.11.3.24.4 Line D - Employer Identification Number 3.11.3.24.5 Line 9 - Gross Income 3.11.3.24.6 Lines 32a through 32f - Other Expenses (Not Transcribed) 3.11.3.24.7 Line 33 - Total Expenses 3.11.3.24.8 Line 36b - "At Risk" Question 3.11.3.24.9 Line 50 - Gross Income 3.11.3.25 Schedule R - Credit for the Elderly or the Disabled 3.11.3.25.1 Schedule R - General Editing Procedures 3.11.3.25.2 Filing Status and Age Box 3.11.3.25.3 Line 11 - Taxable Disability Income 3.11.3.25.4 Line 13c - Nontaxable Pension, Annuity, or Disability Income 3.11.3.26 Schedule SE - Self-Employment Tax 3.11.3.26.1 Schedule SE - General Editing Procedures 3.11.3.26.2 Schedule SE 3.11.3.26.2.1 Social Security Number 3.11.3.26.2.2 Lines 1a and 2 - Income 3.11.3.26.2.3 Line 3 - Net Earnings or Loss 3.11.3.26.2.4 Line 4c - Margin SE Quarters Covered 3.11.3.26.2.5 Line 5a - Church Employee Self-Employment Wages 3.11.3.26.2.6 Line 8d - Total Social Security Wages and Tips 3.11.3.26.2.7 Line 26 - SE Maximum Deferred Amount 3.11.3.26.2.8 Bottom Center Margin - SE Method Code 3.11.3.26.3 Prior Year Schedule SE 3.11.3.27 Form 1116 - Computation of Foreign Tax Credit, General Editing Procedures 3.11.3.27.1 Form 1116 3.11.3.27.1.1 Line 7 - Taxable Income from Foreign Sources 3.11.3.27.1.2 Line 8 - Total Foreign Taxes Paid or Accrued 3.11.3.27.1.3 Line 24 - Gross Foreign Tax Credit 3.11.3.27.1.4 Line 35 - Form 1116 (Foreign Tax Credit) 3.11.3.27.2 Prior Year Form 1116 3.11.3.28 Schedule J - Farm Income Averaging 3.11.3.28.1 Schedule J - General Editing Procedures 3.11.3.29 Form 2441 - Credit for Child and Dependent Care Expenses 3.11.3.29.1 Form 2441 - General Editing Procedures 3.11.3.29.1.1 Care Provider's Information 3.11.3.29.1.2 Line 2(a) - Qualifying Person's Name Control 3.11.3.29.1.3 Line 2(b) - Qualifying Person's TIN 3.11.3.29.1.4 Number of Qualifying Persons 3.11.3.29.1.5 Line 3 - Qualified Expenses 3.11.3.29.1.6 Lines 4 and 5 - Earned Income 3.11.3.29.2 Prior Year Form 2441 3.11.3.30 Form 3800 - General Business Credit 3.11.3.30.1 Form 3800 - General Editing Procedures 3.11.3.30.2 Prior Year Form 3800 3.11.3.31 Form 4136 - Credit for Federal Tax Paid on Fuels 3.11.3.31.1 Form 4136 - General Editing Procedures 3.11.3.31.2 Prior Year Form 4136 3.11.3.32 Form 4137 - Social Security and Medicare Tax on Unreported Tip Income 3.11.3.32.1 Form 4137 - General Editing Procedures 3.11.3.32.1.1 Taxpayer Identification Number (TIN) 3.11.3.32.1.2 Line 8 - Total Social Security Wages and Tips 3.11.3.32.2 Prior Year Form 4137 3.11.3.33 Form 4684 - Casualties and Thefts 3.11.3.33.1 Form 4684 3.11.3.33.1.1 FEMA Disaster Declaration Number 3.11.3.33.1.2 Line 1- Property A ZIP Code 3.11.3.33.1.3 Line 13 3.11.3.33.1.4 Line 14 3.11.3.33.1.5 Line 16 3.11.3.34 Form 4797 - Sale(s) of Business Property 3.11.3.34.1 Form 4797 - General Editing Procedures 3.11.3.34.2 Prior Year Form 4797 3.11.3.35 Form 4972 - Tax on Lump-Sum Distributions 3.11.3.35.1 Form 4972 - General Editing Procedures 3.11.3.35.2 Prior Year Form 4972 3.11.3.36 Form 5329 - Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts 3.11.3.36.1 Form 5329 - General Editing Procedures 3.11.3.36.1.1 IRA Condition Codes 3.11.3.36.1.2 Spousal Indicator (to perfect Form 5329) 3.11.3.36.1.3 Lines 17, 25, 33, 41, 49, 51 and 55 - Tax Due (to perfect Form 5329) 3.11.3.36.2 Loose Form 5329 3.11.3.36.3 Prior Year Form 5329 3.11.3.37 Form 6198 - At-Risk Limitations 3.11.3.37.1 Form 6198 - General Editing Procedures 3.11.3.37.2 Prior Year Form 6198 3.11.3.38 Form 6251 - Alternative Minimum Tax 3.11.3.38.1 Form 6251- General Editing Procedures 3.11.3.38.2 Prior Year Form 6251 3.11.3.39 Form 8615 - Tax for Certain Children Who Have Unearned Income 3.11.3.39.1 Form 8615 3.11.3.39.1.1 Parent's Name Line and TIN 3.11.3.39.1.2 Line 1 - Unearned Income 3.11.3.39.2 Prior Year Form 8615 3.11.3.40 Form 4835 - Farm Rental Income and Expenses 3.11.3.40.1 Form 4835 - General Editing Procedures 3.11.3.40.2 Prior Year Form 4835 3.11.3.41 Form 8839 - Qualified Adoption Expenses 3.11.3.41.1 Form 8839 - General Editing Procedures 3.11.3.41.1.1 Line 21 – Total of Employer Provided Adoption Benefits 3.11.3.41.1.2 Line 29 – Taxable Benefits 3.11.3.41.2 Prior Year Form 8839 3.11.3.42 Form 8853 - Archer MSAs and Long Term Care (LTC) Insurance Companies 3.11.3.42.1 Form 8853 - General Editing Procedures 3.11.3.42.1.1 Archer MSA Instructions (Section A) 3.11.3.42.1.2 Combining Multiple Sections A 3.11.3.42.2 Prior Year Form 8853 3.11.3.43 Form 8814 - Parent's Election to Report Child's Interest and Dividends 3.11.3.43.1 Form 8814 - General Editing Procedures 3.11.3.43.1.1 Line A - Child's Name Control 3.11.3.43.1.2 Line B - Child's Taxpayer Identification Number 3.11.3.43.1.3 Line 15 - Tax 3.11.3.43.2 Prior Year Form 8814 3.11.3.44 Schedule EIC - Earned Income Credit 3.11.3.44.1 Schedule EIC - General Editing Procedures 3.11.3.44.2 Line 1 - Qualifying Child 3.11.3.44.3 Child's Name Control 3.11.3.44.4 Line 2 - Child's SSN 3.11.3.44.5 Line 3 - Year of Birth 3.11.3.44.6 Line 4a - Student Under Age 24 Indicator 3.11.3.44.7 Line 4b - Disabled Indicator 3.11.3.44.8 Line 5 - Child's Relationship to You 3.11.3.44.9 Line 6 - Number of Months Child Lived with You 3.11.3.44.10 Prior Year Schedule EIC 3.11.3.45 Schedule H - Household Employment Taxes 3.11.3.45.1 Schedule H - General Editing Procedures 3.11.3.45.2 Schedule H - Employer Name Control 3.11.3.45.3 Schedule H - Social Security Number Box 3.11.3.45.4 Schedule H - Employer Identification Number (EIN) Box 3.11.3.45.5 Line 1a - Total Social Security Wages 3.11.3.45.6 Line 3 - Total Medicare Wages 3.11.3.45.7 Line 8c - Total Social Security, Medicare, and Income Taxes 3.11.3.45.8 Line 8d - Maximum Deferred Amount 3.11.3.45.9 Schedule H - FUTA Indicator (FIN Code) 3.11.3.45.10 Line 13 - FUTA State Code 3.11.3.45.11 Line 14 - FUTA Contributions Paid 3.11.3.45.12 Line 17 - Column (a), FUTA State Code 3.11.3.45.13 Line 18 - Column (h), FUTA Contributions Paid 3.11.3.45.14 Line 19 - FUTA Total Tentative Credit 3.11.3.45.15 Loose Schedule H 3.11.3.45.16 Prior Year Schedule H 3.11.3.45.16.1 Loose Schedule H 3.11.3.46 Schedule 8812 - Additional Child Tax Credit 3.11.3.46.1 Schedule 8812 - General Editing Procedures 3.11.3.46.2 Prior Year Schedule 8812 - General Editing Procedures 3.11.3.47 Form 8606 - Nondeductible IRAs 3.11.3.47.1 Form 8606, General Editing Procedures 3.11.3.47.1.1 Spousal Indicator 3.11.3.47.1.2 Line 15c - Taxable Amount 3.11.3.47.2 Prior Year Form 8606 3.11.3.48 Form 8863 - Education Credits (American Opportunity and Lifetime Learning Credits) 3.11.3.48.1 Form 8863 - General Editing Procedures 3.11.3.48.1.1 Form 8863, Part I - Refundable American Opportunity Credit 3.11.3.48.1.2 Form 8863, Part II - Nonrefundable Education Credits 3.11.3.48.1.3 Form 8863, Part III - Student and Educational Institution Information 3.11.3.48.2 Prior Year Form 8863 3.11.3.49 Form 4952 - Investment Interest Expense Deduction 3.11.3.49.1 Form 4952 - General Editing Procedures 3.11.3.49.1.1 Line 4e - Gain from Disposition of Property 3.11.3.50 Form 8889 - Health Savings Accounts 3.11.3.50.1 Prior Year Form 8889 3.11.3.51 Form 8880 - Credit for Qualified Retirement Savings Contributions 3.11.3.51.1 Prior Year Form 8880 3.11.3.52 Form 8995 / 8995-A / 8995-A Schedule C - Qualified Business Income Deduction 3.11.3.52.1 Prior Year Form 8995 / 8995-A 3.11.3.53 Form 8888 - Allocation of Refund (Including Savings Bond Purchases) 3.11.3.53.1 Prior Year Form 8888 3.11.3.54 Form 8978 - Partner’s Additional Reporting Year Tax 3.11.3.54.1 Prior Year Form 8978 3.11.3.55 Form 5405 - Repayment of the First-Time Homebuyer Credit 3.11.3.55.1 Prior Year Form 5405 3.11.3.56 Form 8917 - Tuition and Fees Deduction 3.11.3.56.1 Prior Year Form 8917 3.11.3.57 Form 8919 - Uncollected Social Security and Medicare Tax on Wages 3.11.3.57.1 Prior Year Form 8919 - Uncollected Social Security and Medicare Tax on Wages 3.11.3.58 Form 8958 - Allocation of Tax Amounts Between Certain Individuals in Community Property States 3.11.3.58.1 Prior Year Form 8958 - Allocation of Tax Amounts Between Certain Individuals in Community Property States 3.11.3.59 Form 8941 - Credit for Small Employer Health Insurance Premiums 3.11.3.59.1 Prior Year Form 8941- Credit for Small Employer Health Insurance Premiums 3.11.3.60 Form 6252 - Installment Sale Income 3.11.3.60.1 Prior Year Form 6252 3.11.3.61 Form 8910 - Alternative Motor Vehicle Credit 3.11.3.61.1 Prior Year Form 8910 - Alternative Motor Vehicle Credit 3.11.3.62 Form 8936 - Qualified Plug-In Electric Drive Motor Vehicle Credit 3.11.3.62.1 Prior Year Form 8936 - Qualified Plug-In Electric Drive Motor Vehicle Credit 3.11.3.63 Form 8867 - Paid Preparer's Due Diligence Checklist 3.11.3.63.1 Prior Year Form 8867 3.11.3.64 Form 8959 - Additional Medicare Tax 3.11.3.64.1 Prior Year Form 8959 3.11.3.65 Form 8960 - Net Investment Income Tax - Individuals, Estates and Trusts 3.11.3.65.1 Prior Year Form 8960 3.11.3.66 Form 8962 - Premium Tax Credit (PTC) 3.11.3.66.1 Prior Year Form 8962 3.11.3.67 Prior Year Form 8965 - Health Coverage Exemptions 3.11.3.68 Form 965-A - Individual Report of Net 965 Tax Liability 3.11.3.68.1 Prior Year Form 965-A 3.11.3.69 Schedule LEP - Request for Change in Language Preference 3.11.3.70 Prior Year Returns 3.11.3.70.1 Prior Year Returns - General Information 3.11.3.70.1.1 Prior Year Returns-Form 6114 General Information 3.11.3.70.2 Statutory Protection Cases 3.11.3.70.3 Prior Year Return Editing Procedures 3.11.3.70.3.1 Form 1040 - Pages 1 and 2 3.11.3.70.3.1.1 Standard Deduction Includes Real Estate Taxes/Disaster Loss 3.11.3.70.3.1.2 Line 19 - Child Tax Credit (Form 8812) 3.11.3.70.3.1.3 Line 27 - Earned Income Credit 3.11.3.70.3.1.4 Line 28 - Additional Child Tax Credit (Form/Schedule 8812) 3.11.3.70.3.1.5 Line 29 - Refundable American Opportunity Credit (Form 8863) 3.11.3.70.3.1.6 Line 33- Total Payments 3.11.3.70.3.2 Schedule 1 - Additional Income and Adjustments to Income 3.11.3.70.3.2.1 Line 12 - Health Savings Account Deduction 3.11.3.70.3.2.2 Line 19 - IRA Deduction 3.11.3.70.3.2.3 Line 21- Tuition and Fees 3.11.3.70.3.2.4 Domestic Production Activities Deduction (Form 8903) 3.11.3.70.3.3 Schedule 2 - Additional Taxes 3.11.3.70.3.3.1 Line 8 - Other Taxes 3.11.3.70.3.4 Schedule 3 - Additional Credits and Payments 3.11.3.70.3.4.1 Line 5 - Residential Energy Credit (Form 5695) 3.11.3.70.3.4.2 Line 6 - Other Credits 3.11.3.70.3.4.3 Line 10 - Excess Social Security Tax (SST) 3.11.3.70.3.5 Form 1040A 3.11.3.70.3.5.1 Form 1040A - General Information 3.11.3.70.3.6 Form 1040EZ 3.11.3.70.3.6.1 Dependency Status Indicator (DSI) 3.11.3.70.3.6.2 Form 1040EZ, General Information Exhibit 3.11.3-1 Attachment Guide Exhibit 3.11.3-2 Action Codes Exhibit 3.11.3-3 Audit Codes Exhibit 3.11.3-4 Computer Condition Codes (CCC) Exhibit 3.11.3-5 Return Processing Codes (RPC) Exhibit 3.11.3-6 Special Processing Codes (SPC) Exhibit 3.11.3-7 Unallowable Codes Exhibit 3.11.3-8 Examples of Reasonable Cause Exhibit 3.11.3-9 State Codes and Zip Codes Perfection Chart (State Order) Exhibit 3.11.3-10 Examples of Self-Employment Income (This list is not all inclusive) Exhibit 3.11.3-11 Frivolous Filer/Non-Filer Review Box Criteria and Definitions Exhibit 3.11.3-12 Examination Review Box Criteria Exhibit 3.11.3-13 Glossary and Acronyms Exhibit 3.11.3-14 Form 6001: Instructions for Completing Form 6001 (Letter 12C) Correspondence Action Sheet Exhibit 3.11.3-15 Form 3531 Instructions Exhibit 3.11.3-16 Correspondence Fill-in Paragraphs Exhibit 3.11.3-17 Conversion of TY17-TY14 Forms 1040, 1040A, and 1040EZ, Using 2020 Form 6114 and Schedules Part 3. Submission Processing Chapter 11. Returns and Documents Analysis Section 3. Individual Income Tax Returns 3.11.3 Individual Income Tax Returns Manual Transmittal December 11, 2020 Purpose (1) This transmits revised IRM 3.11.3, Returns and Documents Analysis - Individual Income Tax Returns - Code and Edit. Material Changes (1) IRM 3.11.3 This IRM has been rewritten to provide instructions for revised 2020 Form 1040/1040-SR and revised Schedule 3 and other forms and schedules. This has necessitated the renumbering of sections throughout. (2) IRM 3.11.3 Various editorial changes were made throughout the IRM, e.g., updating IRM references; correcting spelling or grammatical errors; updating information that changes annually, such as tax years; line numbers, dates, updating website addresses/links; formatting; etc. (3) IRM 3.11.3 Updated standard deduction and additional standard deduction amounts, references to all money amounts, tolerances, limitations, and EIC money amounts updated throughout IRM. (4) IRM 3.11.3 Updated routing instructions as necessary throughout IRM to remove routing to Submission Processing functions at FSPC. (5) IRM 3.11.3.2.1(1) Removed reference to Form 1040-SR, 1040A and 1040EZ. Added new program codes for Form 1040(SP) and note for program code 43115. (6) IRM 3.11.3.2.2 Added new (3) regarding numbered returns in unnumbered batches. IPU 20U0387 issued 03-06-2020. (7) IRM 3.11.3.3.3(1) Revised sequence code range through 77A. (8) IRM 3.11.3.3.3 Removed tax year limitation from Form 8917. IPU 20U0150 issued 01-24-2020. (9) IRM 3.11.3.3.3(4) Added Form 8995-A Schedules A, B, and D to the list. (10) IRM 3.11.3.3.3(10) Revised note for RPCs. (11) IRM 3.11.3.3.3(11) Added Form 8995-A, Schedule C and Schedule LEP to list of transcribed forms. (12) IRM 3.11.3.3.3(11) Removed Form 461 from chart, no longer a transcribed form for 2019. IPU 20U0654 issued 06-01-2020. (13) IRM 3.11.3.3.3 Deleted (12) and (13) for 1040A/EZ, no longer applicable. (14) IRM 3.11.3.3.4.1(3) Deleted list with Form 1040A information and added note for Form 3474-E to (3). (15) IRM 3.11.3.3.4.1(4) Chart Revised Line 6 information. IPU 20U0024 issued 01-02-2020. (16) IRM 3.11.3.3.5(4) Removed Form 1040A/EZ information. (17) IRM 3.11.3.3.6(5) Revised Form 3949-A information. IPU 20U0237 issued 02-07-2020. (18) IRM 3.11.3.3.6(2) Added note regarding returned EIP Prepaid Debit Cards. IPU 20U0782 issued 07-10-2020. (19) IRM 3.11.3.3.6.1(2) Added clarification for current year returns. (20) IRM 3.11.3.3.7.1(4) Removed list containing Form 1040A/EZ editing information. (21) IRM 3.11.3.3.7.2(2) Removed list containing Form 1040A/EZ editing information. (22) IRM 3.11.3.3.7.3(4) Removed list containing Form 1040A/EZ editing information. (23) IRM 3.11.3.3.7.4(2) Removed list containing Form 1040A/EZ editing information and rewrote paragraph to contain new information. (24) IRM 3.11.3.3.7.5 Deleted (3) with Form 1040A information and rewrote (2) to be all inclusive. (25) IRM 3.11.3.4.2.4(1)f Removed obsolete information for Form 1040A/EZ from exception. (26) IRM 3.11.3.4.2.5(1) revised instruction for bracketing including the note. (27) IRM 3.11.3.4.2.5(1) Note Added statement regarding Form 6114. IPU 20U0237 issued 02-07-2020. (28) IRM 3.11.3.4.2.5(1) Reworded note to add combining. IPU 20U0654 issued 06-01-2020. (29) IRM 3.11.3.4.2.7 Added CIS/AM to the exception. IPU 20U0387 issued 03-06-2020. (30) IRM 3.11.3.4.2.7(1) Updated IVO to be RIVO. IPU 20U0150 issued 01-24-2020. (31) IRM 3.11.3.4.3 Deleted (c) in (3) and added two new bullets to (4) related to Schedule 3. IPU 20U0024 issued 01-02-2020. (32) IRM 3.11.3.4.3(2) Changed "for prior year" to read "for TY18 and prior" . (33) IRM 3.11.3.4.3(4) Removed 5th and 6th bullets in regard to Form 1040A/EZ. (34) IRM 3.11.3.5.1(1) Updated Exception with tolerance information. IPU 20U0092 issued 01-14-2020. (35) IRM 3.11.3.5.1(3) Separated 2nd bullet into two bullets. (36) IRM 3.11.3.5.2(3) removed Form 1040A information. Added information regarding Form 1040-SR pages 1-3. (37) IRM 3.11.3.5.2.1(3)b Added note for decedent correspondence. (38) IRM 3.11.3.5.2.1(2) Exception Removed reference to FSPC. (39) IRM 3.11.3.5.2.2(6) Removed information in regard to Form 1040A/EZ. (40) IRM 3.11.3.5.3.2(6) Removed reference to RIVO under the signature row. IPU 20U0944 issued 08-26-2020. (41) IRM 3.11.3.5.3.2(6) Updated IVO to be RIVO. IPU 20U0150 issued 01-24-2020. (42) IRM 3.11.3.5.3.2(6) Added reference to CY line numbers and removed prior year line information from all charts. Deleted charts specifically for 1040A/EZ forms and schedules. (43) IRM 3.11.3.6(3) Removed Joint Committee Return from list. (44) IRM 3.11.3.6(2) Removed Refund Scheme from list. IPU 20U0944 issued 08-26-2020. (45) IRM 3.11.3.6.1.1.1(1) Chart Deleted list item #4 and added take no action to #3. (46) IRM 3.11.3.6.1.4 Changed the title of the section from Hardship to Taxpayer Advocate Service(TAS) and added new (1) regards to Taxpayer Bill of Rights. (47) IRM 3.11.3.6.1.6(5) Added FRP routing instructions per IPU 20U1053 issued 09-28-2020; revised those instructions for PY2021. (48) IRM 3.11.3.6.1.7 Deleted the section for Refund Schemes. IPU 20U0944 issued 08-26-2020. (49) IRM 3.11.3.6.1.7 Revised to read Return Integrity and updated IVO to be RIVO. IPU 20U0150 issued 01-24-2020. (50) IRM 3.11.3.6.2.1(1) Removed IVO/IVTA from last bullet in Exception. IPU 20U0024 issued 01-02-2020. (51) IRM 3.11.3.6.2.3(1) Deleted bullet list and revised to update the line numbers and wording. (52) IRM 3.11.3.6.2.3(4) Added example of final return. (53) IRM 3.11.3.6.2.4(1) Added information for Form 1040-SR, pages 1-3. (54) IRM 3.11.3.6.2.5(2) Deleted bullet list as obsolete. (55) IRM 3.11.3.6.2.5(4) Removed references to exemptions and 1040A/EZ. (56) IRM 3.11.3.6.2.9(4) Updated paragraph and list to remove obsolete 1040A/EZ information. (57) IRM 3.11.3.6.2.10(1) Deleted 1st reminder in 2nd column. (58) IRM 3.11.3.6.2.12(6) Deleted paragraph, instruction no longer applicable. (59) IRM 3.11.3.6.2.13(5)b Removed Action Code 611 information in exception, not applicable for C&E. (60) IRM 3.11.3.6.2.14 Deleted all instructions for Joint Committee Returns and reserved the section. (61) IRM 3.11.3.6.2.14(1) Added new (a) to list for TY20 and deleted (d) and (e). (62) IRM 3.11.3.6.2.14(1)d Revised to remove example. IPU 20U0092 issued 01-14-2020. (63) IRM 3.11.3.6.2.15 Removed all references to Action Code 611, not applicable for C&E. (64) IRM 3.11.3.6.2.17(4) Removed reference to leap years. (65) IRM 3.11.3.6.2.18(1) Removed Form 1040A/EZ information. (66) IRM 3.11.3.6.2.19(3) Removed Form 1040A/EZ and conversion information. (67) IRM 3.11.3.6.2.20.1(1) Deleted information for FSPC. (68) IRM 3.11.3.6.2.21(2) Deleted alpha list and incorporated (a) into a note. (69) IRM 3.11.3.7.1(4) Deleted list and incorporated information into paragraph. (70) IRM 3.11.3.7.4(1) Deleted 1040A/EZ information and replaced with Form 1040 "Series" return. (71) IRM 3.11.3.8(2) Added note regarding the extended return due date for TY2019. IPU 20U0654 issued 06-01-2020. Removed for 2021, not applicable. (72) IRM 3.11.3.8.1(1) Note Deleted "received" and replaced with "being processed" . IPU 20U0092 issued 01-14-2020. (73) IRM 3.11.3.8.1(1) Revised note to mirror verbiage in IRM 3.21.3. (74) IRM 3.11.3.8.1(1) Added Exception to 5th Bullet for PY2020 requirements and removed references to leap year. IPU 20U0699 issued 06-15-2020. Removed exception for 2021, not applicable. (75) IRM 3.11.3.8.1(5) Revised to expand on and clarify the instructions. (76) IRM 3.11.3.8.2 Removed "TY19" and "current year returns" . (77) IRM 3.11.3.8.2.1(1) Note Updated IVO to be RIVO. IPU 20U0150 issued 01-24-2020. (78) IRM 3.11.3.8.2.1 Added new (2) for information about Form 14471. IPU 20U0428 issued 03-13-2020. (79) IRM 3.11.3.8.3(4) Removed references to leap year. IPU 20U0699 issued 06-15-2020. (80) IRM 3.11.3.8.4(5) Removed references to leap year. IPU 20U0699 issued 06-15-2020. (81) IRM 3.11.3.8.5(3) Added Exception to 4th Bullet for PY2020 requirements and removed references to leap year. IPU 20U0699 issued 06-15-2020. Removed exception for 2021, not applicable. (82) IRM 3.11.3.8.5 Added noted below chart for received dates of July 23, 2020. IPU 20U1022 issued 09-18-2020. Deleted for 2021, no longer applicable. (83) IRM 3.11.3.8.6(5) Converted to a bullet list and added bullet for received dates of July 23, 2020 and later. IPU 20U1022 issued 09-18-2020. Deleted for 2021, no longer applicable. (84) IRM 3.11.3.9.2(6)b Removed Schedule C-EZ information as obsolete. (85) IRM 3.11.3.9.2.1 Removed reference to prior year line numbers and forms. (86) IRM 3.11.3.9.2.3(6) Updated for foreign address locations. (87) IRM 3.11.3.9.2.4 Moved state to a separate subsection. (88) IRM 3.11.3.9.2.5 Added new subsection for new state field on return. (89) IRM 3.11.6.9.2.6 Updated based on revised form and also made some editorial changes. (90) IRM 3.11.3.10 Revised to remove reference to prior year forms and lines. (91) IRM 3.11.3.10.1 Revised caption editing instructions as impacted by Form 1310. (92) IRM 3.11.3.10.1(1) Revised Exception with instruction to edit Estate Of when sending return back to TP without a valid Form 1310. IPU 20U0024 issued 01-02-2020. (93) IRM 3.11.3.10.1(6) Added Note regarding "Estate of" or "Trust" in caption. IPU 20U0092 issued 01-14-2020. (94) IRM 3.11.3.10.1(7) Added exception for KCSPC and OSPC processing BMF returns. IPU 20U0387 issued 03-06-2020. (95) IRM 3.11.3.10.3 Revised section title for consistence with other sections and added reference to (3) exception. (96) IRM 3.11.3.10.6(3) Deleted no longer applicable. (97) IRM 3.11.3.12.1(1) Revised the editing location Filing Status code. (98) IRM 3.11.3.12.1 Updated (1) and (3) to reflect updated information for processing year 2021. (99) IRM 3.11.3.12.2 Revised section to remove all prior year information. (100) IRM 3.11.3.12.2.2 Chart Removed prior year information. (101) IRM 3.11.3.12.2.3(1) Removed prior year information. (102) IRM 3.11.3.12.2.4(1) Chart Removed prior year information. (103) IRM 3.11.3.12.3 Revised section to remove all prior year information. (104) IRM 3.11.3.12.4 Revised section to remove all prior year information. (105) IRM 3.11.3.12.5 Revised section to remove all prior year information. (106) IRM 3.11.3.13 Renamed the section by removing Exemptions from the title. (107) IRM 3.11.3.13.1 Deleted DSI section, only applicable on prior year instructions. (108) IRM 3.11.3.13.2.1 Removed references to Exemptions. (109) IRM 3.11.3.13.2.1(2) Added see also reference to (a). IPU 20U0387 issued 03-06-2020. (110) IRM 3.11.3.13.2.1(5) Added now to 4th bullet to include example of dependents who didn’t live in U.S. IPU 20U0428 issued 03-13-2020. (111) IRM 3.11.3.13.2(2) Revised information for Dependent Position 2 in 2nd bullet and note. IPU 20U0024 issued 01-02-2020. (112) IRM 3.11.3.13.3 Deleted section and all subsections on prior year exemptions and moved the graphic to 3.11.3.13.1(2). (113) IRM 3.11.3.13.4 Revised to update for current year and removed prior year form reference. (114) IRM 3.11.3.13.4.1(1) Removed prior year information and added note in regard to editing from attachments. (115) IRM 3.11.3.13.4.1(2) and (3) Removed references to prior year lines. (116) IRM 3.11.3.13.4.2 Removed references to prior year lines. (117) IRM 3.11.3.14 Updated section with revised Form 1040 line numbers for tax year 2020 and added new Forms 1040(S) and 1040-SR(SP) to the reminder. (118) IRM 3.11.3.14(3) Corrected list of T-Compute lines. IPU 20U0237 issued 02-07-2020. (119) IRM 3.11.3.14.1 Added new (3) with processing instructions for EIP returns. Subsequent paragraphs renumbered. IPU 20U0654 issued 06-01-2020. (120) IRM 3.11.3.14.1(2) Add information referencing 1040-SR pages 1-4. (121) IRM 3.11.3.14.1(3) Added Stimulus as a possible notation on return. IPU 20U0897 issued 08-11-2020. (122) IRM 3.11.3.14.1(3) Moved this paragraph to prior year section 3.11.3.75.1. (123) IRM 3.11.3.14.1(3) Removed rebatching instruction from paragraph and added Note with instructions for rebatching under program codes 43116 or 43126. IPU 20U0699 issued 06-15-2020. (124) IRM 3.11.3.14.1(4) Removed Refund Scheme from chart. IPU 20U0944 issued 08-26-2020. (125) IRM 3.11.3.14.2.1 Chart Added Medicaid Waiver information. IPU 20U0024 issued 01-02-2020. (126) IRM 3.11.3.14.2.1(2) Chart - Expanded on Medicaid Waiver payment by adding IHHS, IHSS and Difficulty of Care; revised Non-Employee Compensation with specific instructions instead of reference to Self-Employment. (127) IRM 3.11.3.14.2.8(1) Added 3rd bullet with line 6 checkbox information. IPU 20U0024 issued 01-02-2020. (128) IRM 3.11.3.14.2.10(1) Correct line numbers listed. IPU 20U0024 issued 01-02-2020. (129) IRM 3.11.3.14.2.11 Revised (2) Exception to correspond with new editing requirements for 2021 and added new (3) with new instructions to compute and edit line 10c. (130) IRM 3.11.3.14.2.14(1) Corrected correspondence information, correspond for F8995-A. IPU 20U0024 issued 01-02-2020. (131) IRM 3.11.3.14.2.14 Revised section to include Form 8995-A, Schedule C and added note for possible SPC "6" editing requirement. (132) IRM 3.11.3.14.2.16 Deleted (3) and (4) and moved to new subsection for Line 17. (133) IRM 3.11.3.14.2.16(2) Deleted note as no longer applicable. IPU 20U0024 issued 01-02-2020. (134) IRM 3.11.3.14.2.16(4) Added info to chart for dummying. IPU 20U0237 issued 02-07-2020. (135) IRM 3.11.3.14.2.17(3) Added info to chart for dummying. IPU 20U0237 issued 02-07-2020. (136) IRM 3.11.3.14.2.17 Created new subsection for Line 17 based on Form 1040 redesign for TY20. (137) IRM 3.11.3.14.2.18 Updated the title to conform to revised form 1040; rewrote (1) exception to reflect new line information and updated the chart in (2) by adding Form 3800 and Form 8801 and deleting note. (138) IRM 3.11.3.14.2.19 Corrected figure 3.11.3-70. IPU 20U0024 issued 01-02-2020. (139) IRM 3.11.3.14.2.19(2) Revised the chart for Schedule 2, Part II, updated Schedule SE title and deleted the note. (140) IRM 3.11.3.14.2.20(4) Deleted (4) and note in regard to referring returns to RIVO, subsequent paragraphs renumbered. IPU 20U0944 issued 08-26-2020. (141) IRM 3.11.3.14.2.20(4) Updated IVO to be RIVO. IPU 20U0150 issued 01-24-2020. (142) IRM 3.11.3.14.2.21(6) Deleted (6) in reference to RIVO, subsequent paragraphs renumbered. IPU 20U0944 issued 08-26-2020. (143) IRM 3.11.3.14.2.21(6) Updated IVO to be RIVO. IPU 20U0150 issued 01-24-2020. (144) IRM 3.11.3.14.2.22 Added new subsection for Estimated Tax Payments line which was moved from Schedule 3, line 8 to the Form 1040 line 26. (145) IRM 3.11.3.14.2.23(5) Added Form 1099-NEC to the chart. and deleted Schedule C-EZ. (146) IRM 3.11.36.14.2.24 Moved Nontaxable Combat Pay instruction to align with redesign of Form 1040 for TY20. (147) IRM 3.11.3.14.2.27 Created new subsection for new Recovery Rebate Credit line on Form 1040 for TY20. (148) IRM 3.11.3.14.2.28 Updated the Chart to Schedule 3, Part II and deleted the note. (149) IRM 3.11.3.14.2.29(1) Added note with instructions not to include edited "888" in computation. (150) IRM 3.11.3.14.2.31(1) Chart Deleted notes from the chart regarding dummying of schedules, no longer applicable. (151) IRM 3.11.3.14.3.1(5) Deleted paragraph referring to refund schemes. (152) IRM 3.11.3.14.3.2(2) Chart Rewritten to remove line number references and replace with line descriptions. (153) IRM 3.11.3.14.3.3(1) Updated the chart header for column 1. (154) IRM 3.11.3.14.3.5(4) Corrected tax year. IPU 20U0024 issued 01-02-2020. (155) IRM 3.11.3.14.3.2(1) Reworded paragraph to better explain instruction. IPU 20U0024 issued 01-02-2020. (156) IRM 3.11.3.14.4 Added instruction for possible editing of 3rd Party Designee. IPU 20U0024 issued 01-02-2020. (157) IRM 3.11.3.14.4 Removed all instructions for editing third party designee. IPU 20U0308 issued 02-24-2020. (158) IRM 3.11.3.14.5(6) Updated IVO to be RIVO. IPU 20U0150 issued 01-24-2020. (159) IRM 3.11.3.14.8 Added new (2) for editing of 3rd Party Designee checkbox. IPU 20U0024 issued 01-02-2020. (160) IRM 3.11.3.14.8 Deleted (2) to remove instructions for editing third party designee. IPU 20U0308 issued 02-24-2020. (161) IRM 3.11.3.14.8(2) Updated the chart header for column 1 and revised the last row regarding taxpayer intent. (162) IRM 3.11.3.15(2) Updated T-Line chart to include 982 Indicator and dotted portion of line 22. (163) IRM 3.11.3.15(4) Added exception for 982 Indicator. IPU 20U0024 issued 01-02-2020. (164) IRM 3.11.3.15.2(1) Revised instructions to say edit SPC 4 when date is greater than 12/31/2018. (165) IRM 3.11.3.15.8(2) Chart Updated Notice 2014-7 with specific notations of MWP, IHHS, and IHSS,and updated instructions for Non-Employee Compensation. (166) IRM 3.11.3.15.8(4) Deleted Schedule C-EZ from list. (167) IRM 3.11.3.15.13 Revised instruction to include actions when the "Member of Armed Forces" checkbox is not marked on Form 3903. (168) IRM 3.11.3.15.15(1) Removed Schedule C-EZ from list. (169) IRM 3.11.3.15.18(3) Revised instructions to say edit SPC 4 when date is greater than 12/31/2018. (170) IRM 3.11.3.15.21 Added section for Line 21 Tuition and Fees. IPU 20U0150 issued 01-24-2020. (171) IRM 3.11.3.15.22(1) Added new bullet for ED67(e) for TY18 and later. IPU 20U0748 issued 06-27-2020. (172) IRM 3.11.3.16 Rearranged information in section to clarify instructions. (173) IRM 3.11.3.16.4(1) Deleted Schedule C-EZ information. (174) IRM 3.11.3.16.8(3) Chart - Deleted instructions and indicated take no action in first row then column. (175) IRM 3.11.3.16.8(4) Added 1291INT and 1294INT to the list of possible notations. (176) IRM 3.11.3.17(2) Updated T-Line Chart with new T-lines based on form redesign. (177) IRM 3.11.3.17.8 Deleted section, information moved to Form 1040, line 26. (178) IRM 3.11.3.17.11(2) Reworded to clearly indicate what amount to delete. (179) IRM 3.11.3.17.11(4) b Added note with information for two Forms W-2 with same EIN. IPU 20U0428 issued 03-13-2020. (180) IRM 3.11.3.17.13 Corrected figure 3.11.3-91. IPU 20U0024 issued 01-02-2020. (181) IRM 3.11.3.17.13(3) Added new row to chart for Form 8805. IPU 20U0092 issued 01-14-2020. (182) IRM 3.11.3.17.13 Rewrote section based on form redesign, renamed as Schedule 3, Line 12a. (183) IRM 3.11.3.17.14 Added new section for Schedule 3, Line 12b. (184) IRM 3.11.3.17.15 Added new section for Schedule 3, Line 12d. (185) IRM 3.11.3.17.16 Added new section for Schedule 3, Line 12e. (186) IRM 3.11.3.17.17 Added new section for Schedule 3, Line 12f. (187) IRM 3.11.3.18(6) Removed UA 83 from chart. IPU 20U0150 issued 01-24-2020. (188) IRM 3.11.3.18.1(1) Added line 8d to the T-line chart. IPU 20U0150 issued 01-24-2020. (189) IRM 3.11.3.18.1(1) - Removed notation of tax year. IPU 20U0180 issued 01-30-2020. (190) IRM 3.11.3.18.1.8 Deleted (2) in regard to UA 83. IPU 20U0150 issued 01-24-2020. (191) IRM 3.11.3.18.1.9 Deleted Note in regard to UA 83. IPU 20U0150 issued 01-24-2020. (192) IRM 3.11.3.18.1.9(4) Updated note to say "Federally Declared" Disaster. (193) IRM 3.11.3.20 Updated section to remove Schedule C-EZ information and added instruction to convert to Schedule C when attached. (194) IRM 3.11.3.20(1) Added note for Schedule C-EZ attached to current year return. IPU 20U0024 issued 01-02-2020. (195) IRM 3.11.3.20(3) Revised paragraph with line numbers and deleted bullet list. (196) IRM 3.11.3.20.1 Deleted (1) as no longer necessary and deleted Schedule C-EZ references throughout section. (197) IRM 3.11.3.20.2 Deleted (7) and updated section to remove references to Schedule C-EZ throughout. (198) IRM 3.11.3.20.6 Updated to remove references to Schedule C-EZ throughout. (199) IRM 3.11.3.20.6(2) - Added new bullet with instructions for additional Schedule C. IPU 20U0180 issued 01-30-2020. (200) IRM 3.11.3.20.9(1) Corrected Form 3531 box number. IPU 20U0024 issued 01-02-2020. (201) IRM 3.11.3.20.9(1) Corrected Form number. IPU 20U0092 issued 01-14-2020. (202) IRM 3.11.3.20.10 Added new (1) with instructions to convert obsolete Schedule C-EZ to a Schedule C and removed C-EZ throughout. (203) IRM 3.11.3.20.10.1 Deleted section with Schedule C-EZ specific instructions. (204) IRM 3.11.3.21(5) Added expanded instructions referencing rental or inheritance. (205) IRM 3.11.3.21 Added new (4) with instructions regarding yes checkbox. Subsequent paragraphs renumbered. IPU 20U0024 issued 01-02-2020. (206) IRM 3.11.3.21.1 - Removed notation of tax year. IPU 20U0180 issued 01-30-2020. (207) IRM 3.11.3.22 Added new (2) with instructions to delete if no Z coded entries are present and revised instructions when multiple forms are present or forms present with no Z code. All paragraphs subsequent to (2) were renumbered. IPU 20U0024 issued 01-02-2020. (208) IRM 3.11.3.22 Updated section to include Y coded entries as part of transcription for TY20. (209) IRM 3.11.3.22.1 Added new subsection for Prior Year Form 8949. (210) IRM 3.11.3.23.1.1.1(1) - Reworded to include worksheets. IPU 20U0180 issued 01-30-2020. (211) IRM 3.11.3.23.1.2.1(1) Deleted references to TY17. (212) IRM 3.11.3.24.1(6) Deleted references to Schedule C-EZ in second row of chart. (213) IRM 3.11.3.24.1(6) - Updated chart last row from Part ABP to Part II. IPU 20U0180 issued 01-30-2020. (214) IRM 3.11.3.25(2) Added Schedule R to the sentence for clarification. (215) IRM 3.11.3.25.1(3) Removed reference to Form 1040A. (216) IRM 3.11.3.25.3(1) Removed reference to Form 1040A. (217) IRM 3.11.3.26 Revised section removing Short Schedule SE information for current year processing based on schedule redesign and revised T-line and T-Compute line information. (218) IRM 3.11.3.26.1 Deleted (2) and (5) referencing Section A and Section B, this is no longer applicable. (219) IRM 3.11.3.26.2 Deleted entire section for short Schedule SE, obsolete for TY20. (220) IRM 3.11.3.26.3 Updated the title removing the word "Long" and rewrote (1) removing instructions as related to Section A and B. (221) IRM 3.11.3.26.3.1(2) Removed Section B information. (222) IRM 3.11.3.26.3.1(3) Corrected Form 3531 box number. IPU 20U0024 issued 01-02-2020. (223) IRM 3.11.3.26.3.2 Removed references to Schedule C-EZ. (224) IRM 3.11.3.26.3.3 Replaced "Section B" with "Schedule SE" . (225) IRM 3.11.3.26.3.5 Replaced "Section B" with "Schedule SE" . (226) IRM 3.11.3.26.3.6 Replaced "Section B" with "Schedule SE" . (227) IRM 3.11.3.26.3.7 Add new subsection for new line 26 with instructions to compute when blank. (228) IRM 3.11.3.26.3.8 Replaced "Section B" with "Schedule SE" . (229) IRM 3.11.3.26.4 Added new (1) with short SE conversion information, deleted the Medicare wage column from chart in (2). (230) IRM 3.11.3.26.4(1) - Corrected tax years. IPU 20U0180 issued 01-30-2020. (231) IRM 3.11.3.27.1 Updated section based on form redesign, added new T-lines and T-Compute lines. (232) IRM 3.11.3.27.1(1) - Chart Removed line 30/33 from the T-Compute list. IPU 20U0180 issued 01-30-2020. (233) IRM 3.11.3.27.1(1) Corrected T-Compute line numbers. IPU 20U0237 issued 02-07-2020. (234) IRM 3.11.3.27.1.1(1) - Replaced "amount" with "total" . IPU 20U0180 issued 01-30-2020. (235) IRM 3.11.3.29.1 Deleted (5) with instructions to delete Form 2441 with FS 3/6. (236) IRM 3.11.3.29.1.1(4) Removed day care from 4th bullet, misleading in this location. IPU 20U0024 issued 01-02-2020. (237) IRM 3.11.3.29.1.2(1) Revised list to delete Form 1040A. (238) IRM 3.11.3.29.1.3(2) Revised list to delete Form 1040A. (239) IRM 3.11.3.29.1.5(1)d Exception - Revised to remove prior year information. (240) IRM 3.11.3.29.1.6 Deleted prior year information and Schedule C-EZ from list, updated Form 1099-MISC and added Form 1099-NEC to (4) list; removed prior year information from (6). (241) IRM 3.11.3.29.2 Deleted (2) referencing prior year returns. (242) IRM 3.11.3.30.1(6) Deleted reference to Schedule C-EZ. (243) IRM 3.11.3.30.2 Deleted (1) and note as obsolete. (244) IRM 3.11.3.31(2) - Revised wording in column 1 of chart. IPU 20U0180 issued 01-30-2020. (245) IRM 3.11.3.32.2(1) Removed 2010 from the chart and added 2019 information. (246) IRM 3.11.3.33.1(3) Added ne (b) to list for no entry on line 16 Form 4684. (247) IRM 3.11.3.35.2(1) Rewritten to remove list with obsolete information and consolidate remaining information in paragraph. (248) IRM 3.11.3.36.1.1 Chart Revised 4th IF box to remove line # reference. IPU 20U0654 issued 06-01-2020. (249) IRM 3.11.3.36.3 Deleted (1) as obsolete. (250) IRM 3.11.3.38.1 Deleted (5), contained unnecessary information. (251) IRM 3.11.3.38.2 Changed TY19 to Current Year throughout and deleted (5) with Form 1040A/EZ information, no longer relevant. (252) IRM 3.11.3.39(3) Removed prior year reference. (253) IRM 3.11.3.39.1(2) Deleted bullet list and incorporated information into paragraph. (254) IRM 3.11.3.39.1.1(3) Corrected Form 3531 box number. IPU 20U0024 issued 01-02-2020. (255) IRM 3.11.3.39.2 Deleted (1) through (3), information can be found in current year section. Added new paragraph for TY19. (256) IRM 3.11.3.39.2.1 Deleted subsection, no longer relevant. (257) IRM 3.11.3.41 Deleted subsection, no longer relevant. (258) IRM 3.11.3.42.2 Deleted (1) referencing Form 1040A and conversion criteria. (259) IRM 3.11.3.43.1.1.1 Deleted subsection, information obsolete. (260) IRM 3.11.3.44.2 Deleted (1) through (3) and incorporated the information into the charts in (4) through (9). (261) IRM 3.11.3.45.1 Corrected figure 3.11.3-117. IPU 20U0024 issued 01-02-2020. (262) IRM 3.11.3.45.3 Deleted prior year information. (263) IRM 3.11.3.45.4 Deleted prior year information. (264) IRM 3.11.3.45.5(1) Updated year of birth. (265) IRM 3.11.3.45.10(4) Updated chart for TY 2019 and deleted 2010 information. (266) IRM 3.11.3.45.15(6) Updated rows 3 and 5 “and” column to reflect documentary evidence is attached with signature other than taxpayer. (267) IRM 3.11.3.46(2) Updated T-Line chart based on form redesign. (268) IRM 3.11.3.46.7(1) Revised instructions based on form redesign. (269) IRM 3.11.3.46.8 Added new subsection for new Line 8d. (270) IRM 3.11.3.46.15.2 - Exception Corrected date. IPU 20U0180 issued 01-30-2020. (271) IRM 3.11.3.46.16 Added new (1) with TY19 information; deleted (10) note, MID code no longer edited effective TY20. (272) IRM 3.11.3.46.16.1 Deleted subsection, MID code being deleted from programming and no longer edited effective TY20. (273) IRM 3.11.3.47 Deleted section, information redundant. (274) IRM 3.11.3.48.1 Deleted (4) and added information in a note to (5), paragraphs renumbered. (275) IRM 3.11.3.49.1(6) Corrected Form 3531 box number. IPU 20U0024 issued 01-02-2020. (276) IRM 3.11.3.50.1.2(2) Revised to say missing or incomplete and dummy or complete. (277) IRM 3.11.3.50.1.3 Deleted prior year information in (1); deleted bullet list in (2) Note and incorporated the information into new paragraphs (3) and (4). (278) IRM 3.11.3.50.2 Deleted (1) through (3); information covered in 3.11.3.50.1. (279) IRM 3.11.3.54 Revised section to include Form 8995-A, Schedule C, revised transcription lines and added chart for Schedule C. Added new (4) with instructions for editing SPC "6" . (280) IRM 3.11.3.54(3) Revised to alert that the Form 8995-A takes precedence over Form 8995. IPU 20U0024 issued 01-02-2020. (281) IRM 3.11.3.54.1 Added new (1) with TY19 instructions and information for editing SPC "6" . (282) IRM 3.11.3.56 Revise Form 8978 title. IPU 20U0121 issued 01-21-2020. (283) IRM 3.11.3.57 Revised entire section and subsection removing correspondence instructions no longer valid. (284) IRM 3.11.3.58 Added section for current year Form 8917. IPU 20U0150 issued 01-24-2020. (285) IRM 3.11.3.58.1 Revised prior year Form 8917 instructions. IPU 20U0150 issued 01-24-2020. (286) IRM 3.11.3.61 Deleted section, Form 461 is not a transcribed form for 2020 and instructions are in the Attachment Guide. (287) IRM 3.11.3.61 Deleted current instruction and added instruction to delete Form 461 when attached. IPU 20U0654 issued 06-01-2020. (288) IRM 3.11.3.61.1 Revised prior year instruction to note the editing of SPC R prior to deleting form. IPU 20U0024 issued 01-02-2020. (289) IRM 3.11.3.61.1 Deleted current instruction and added instruction to delete Form 461 when attached. IPU 20U0654 issued 06-01-2020. (290) IRM 3.11.3.64 Revised section by taking paragraphs 1-6 from 3.11.3.64.1 and adding them here per IPU 20U1053 issued 09-28-2020. For 2021, this section renumbered to be 3.11.3.61. (291) IRM 3.11.3.64.1 Moved paragraphs 1-6 to section 3.11.3.64 and renumbered subsequent paragraph. Per IPU 20U1053 issued 09-28-2020. For 2021, this section renumbered to be 3.11.3.61.1. (292) IRM 3.11.3.64.1 Added new (3) with instructions not to delete form with T-lines present, subsequent paragraphs renumbered. IPU 20U0024 issued 01-02-2020. (293) IRM 3.11.3.65 Deleted entire section, information obsolete. Subsequent subsections renumbered. (294) IRM 3.11.3.66 Added new (3) with instructions not to delete form with T-lines present, subsequent paragraphs renumbered. IPU 20U0024 issued 01-02-2020. (295) IRM 3.11.3.67 Deleted (1) as unnecessary instruction. (296) IRM 3.11.3.67.1 Deleted (1) and (2) to remove 1040A/EZ instruction and redundant information. (297) IRM 3.11.3.67.1 Deleted instructions as unnecessary and reserved subsection. IPU 20U0237 issued 02-07-2020. (298) IRM 3.11.3.67.1 Added instruction for prior year processing of Form 8867. IPU 20U0308 issued 02-24-2020. (299) IRM 3.11.3.67.1(1) Corrected Form 3531 box number. (300) IRM 3.11.3.70.1.1(4) Deleted note referencing use of blank Form 1040. (301) IRM 3.11.3.70.3.6 Deleted (5) and added (9) self-employment and non-employee compensation to chart. (302) IRM 3.11.3.73 Added new section for Schedule LEP. (303) IRM 3.11.3.73 Revised entire Section to include information for Form 1040 conversions. IPU 20U0121 issued 01-21-2020. (304) IRM 3.11.3.73 Revised section to remove prior year editing information; deleted (3) through (5). IPU 20U0387 issued 03-06-2020. (305) IRM 3.11.3.73 Added (3) and (4) which had been previously removed. IPU 20U0699 issued 06-15-2020. (306) IRM 3.11.3.73 Deleted entire section on Conversions, no longer applicable, necessary information contained in Form 1040 A and Form 1040EZ sections. Section renamed to be new Schedule LEP. (307) IRM 3.11.3.73.1(1) Deleted 1st bullet for Form 1040, does not apply in Conversion section. IPU 20U0699 issued 06-15-2020. (308) IRM 3.11.3.73.1 Revised to remove references to Form 1040, not applicable to conversions. Updated reference to editing received date, indicating that it should only be edited if not present on original return. IPU 20U0387 issued 03-06-2020. (309) IRM 3.11.3.73.2 Chart - Revised instructions to remove Form 1040 information, removed dependent editing instructions from chart, revised instructions in regard to Capital Gains and corrected line numbers. IPU 20U0387 issued 03-06-2020. (310) IRM 3.11.3.73.2 Chart Revised age/blind indicator row. IPU 20U0428 issued 03-13-2020. (311) IRM 3.11.3.73.2(1) Revised chart to reflect that all dependent editing including dependent positions and child tax credit checkboxes should be edited on original return. IPU 20U0262 issued 02-13-2020. (312) IRM 3.11.3.73.2(1) Added Form 1040 and revised the row for Capital Gains Distribution in chart. IPU 20U0308 issued 02-24-2020. (313) IRM 3.11.3.73.2(1) Chart Added Dependent Positions to the note in 1st row, revised the 5th and 6th row Action information. IPU 20U0699 issued 06-15-2020. (314) IRM 3.11.3.74 Revised section to reflect updated information for prior year editing. (315) IRM 3.11.3.74.1 Revised section to reflect updated information for prior year editing. (316) IRM 3.11.3.74.1.1 Revised section to reflect updated information for use of Form 6114. (317) IRM 3.11.3.74.3 through 3.11.3.74.4.7 Revised entire section to reflect changes for TY20 including the following: Deleted reminders for Form 1040A/EZ. Added new paragraph for editing TY19 EIP returns. Added instructions for determining DSI editing to section. Deleted obsolete tax year instructions. Deleted Other Income section, information found in current year section. Deleted standard deduction chart or TY08. Deleted Tax line section, information found in current year section. Deleted Child Tax Credit instructions for TY97 and prior as unnecessary. Deleted Withholding section, information found in current year section. Updated EIC Chart. Deleted Additional Child Tax Credit information for TY97 and prior. Deleted Educator Expenses and Medical Savings Account Deduction information, it is found in current year section. Deleted TY07-TY06 for IRA deductions, no longer in use in Code and Edit. Deleted section for Married Couple deduction, no longer applicable. Deleted Other Adjustments, Education Credits and Retirement Savings Contribution Credit; information can be found in current year section. Deleted Total Tax and Total Credits information, no actions to be taken here. Revised Residential Energy Credit and other credits to delete obsolete information. (318) IRM 3.11.3.74 Added new (2) with information for use of Form 6114. IPU 20U0699 issued 06-15-2020. (319) IRM 3.11.3.74.1 Deleted (3) and (4), information was moved to another Prior Year section, subsequent paragraphs renumbered. IPU 20U0699 issued 06-15-2020. (320) IRM 3.11.3.74.1.1 Added new sub-section with information for using Form 6114. IPU 20U0699 issued 06-15-2020. (321) IRM 3.11.3.74.1 Added new paragraphs 3-4 with note for TY17 and prior and Form 6114 editing. IPU 20U0387 issued 03-06-2020. (322) IRM 3.11.3.74.1.2 Added new subsection with information when renumbering Form 1040 TY17 and prior. IPU 20U0699 issued 06-15-2020. (323) IRM 3.11.3.74.2 Updated IVO to be RIVO. IPU 20U0150 issued 01-24-2020. (324) IRM 3.11.3.74.3(4) - Added Reminder for Forms 1040A/EZ. IPU 20U0180 issued 01-30-2020. (325) IRM 3.11.3.74.3.1 Added new (2) with instructions for editing full-year coverage checkbox, subsequent paragraphs renumbered. IPU 20U0150 issued 01-24-2020. (326) IRM 3.11.3.74.3.1(1) Added reference in regard to DSI editing criteria. IPU 20U0387 issued 03-06-2020. (327) IRM 3.11.3.74.3 Added new (5) with information regarding TY18, Schedules 1-6. IPU 20U0024 issued 01-02-2020. (328) IRM 3.11.3.74.3.2 Added new (2) with instructions for editing Form 1040, line 7a. IPU 20U0121 issued 01-21-2020. (329) IRM 3.11.3.74.3.2(2) Added tax year to instruction. IPU 20U0237 issued 02-07-2020. (330) IRM 3.11.3.74.3.2.6 Added new (1) for TY18, subsequent paragraphs renumbered. IPU 20U0024 issued 01-02-2020. (331) IRM 3.11.3.74.3.3 Added new (2) with TY18 Schedule 4 renumbering information. IPU 20U0024 issued 01-02-2020. (332) IRM 3.11.3.74.3.3 Added new (3) with instructions for editing HCP. IPU 20U0092 issued 01-14-2020. (333) IRM 3.11.3.74.3.3 Added new (3) with instructions on deletion of blank Schedule 2. IPU 20U0428 issued 03-13-2020. (334) IRM 3.11.3.74.3.3(3) Revised to indicated Schedule 4, line 61 is a T-line. IPU 20U0121 issued 01-21-2020. (335) IRM 3.11.3.74.3.3.2 Revised instruction to include specific lines to compute. IPU 20U0121 issued 01-21-2020. (336) IRM 3.11.3.74.3.3.2(1) Added note regarding HCP amounts. IPU 20U0262 issued 02-13-2020. (337) IRM 3.11.3.74.3.4 Added new (2) with TY18 Schedule 5 renumbering information. IPU 20U0024 issued 01-02-2020. (338) IRM 3.11.3.74.3.4.8 Added new subsection for Schedule 3 Line 14. IPU 20U0121 issued 01-21-2020. (339) IRM 3.11.3.74.3.4 Added new (3) with instructions on deletion of blank Schedule 3. IPU 20U0428 issued 03-13-2020. (340) IRM 3.11.3.74.3.5 Deleted all instructions for Form 1040A that are contained in the current year section. Added instructions for converting all Form 1040A to Form 1040 for processing. (341) IRM 3.11.3.74.3.5.3 Revised Figure 3.11.3-129. IPU 20U0092 issued 01-14-2020. (342) IRM 3.11.3.74.3.5.13(1) Corrected Form 3531 box number. IPU 20U0024 issued 01-02-2020. (343) IRM 3.11.3.74.3.5.18 Revised (1) with 2018 instructions and updated tax years in (2). IPU 20U0024 issued 01-02-2020. (344) IRM 3.11.3.74.3.5.20(2) Corrected Form 3531 box number. IPU 20U0024 issued 01-02-2020. (345) IRM 3.11.3.74.3.5.33(2) Corrected Form 3531 box number. IPU 20U0024 issued 01-02-2020. (346) IRM 3.11.3.74.3.5.36(4) Updated IVO to be RIVO. IPU 20U0150 issued 01-24-2020. (347) IRM 3.11.3.74.3.5.38 Rewrote (1) removing specific tax year reference. IPU 20U0024 issued 01-02-2020. (348) IRM 3.11.3.74.3.5.39 Added new (2) with RPC B editing instructions for Form 1040A. IPU 20U0308 issued 02-24-2020. (349) IRM 3.11.3.74.3.6 Deleted all instructions for Form 1040EZ that are contained in the current year section. Added instructions for converting all Form 1040EZ to Form 1040 for processing. (350) IRM 3.11.3.74.3.6.3(3) Corrected line numbers. IPU 20U0121 issued 01-21-2020. (351) IRM 3.11.3.74.3.6.9 Updated IVO to be RIVO. IPU 20U0150 issued 01-24-2020. (352) IRM 3.11.3.74.3.6.10(3) Updated IVO to be RIVO. IPU 20U0150 issued 01-24-2020. (353) IRM 3.11.3.74.3.6.12(1) Corrected Form 3531 box number. IPU 20U0024 issued 01-02-2020. (354) IRM 3.11.3.75 Deleted, 2008 Recovery Rebate Credit obsolete. (355) Exhibit 3.11.3-1 Revised header paragraph. IPU 20U0024 issued 01-02-2020. (356) Exhibit 3.11.3-1 Removed Form 461 from chart, instruction no longer needed. IPU 20U0092 issued 01-14-2020. (357) Exhibit 3.11.3-1 Updated IVO to be RIVO throughout. IPU 20U0150 issued 01-24-2020. (358) Exhibit 3.11.3-1 Revised Form 3949-A information. IPU 20U0237 issued 02-07-2020. (359) Exhibit 3.11.3-1 Updated CP13/713 with missing information, added Form 461 and 8993 to chart. IPU 20U0654 issued 06-01-2020. (360) Exhibit 3.11.3-1 Added Form 1118, Form 7202, Form 9000 and Form 14095, deleted note for Form 982 and updated information for Form 13441 to the Attachment Guide. (361) Exhibit 3.11.3-1 Deleted the following Forms, no action required: LTR5591/5591-A/6000, LTR5596/6001, NR-4, 673, 1040-A(SP), 3115, 8582, 8834, 8840, 8843, 8846, 8866, 8891, 8914, 8915a/b, 8918, and 14950. Also removed Durable Power of Attorney, FINCIN F114 and General Power of Attorney. (362) Exhibit 3.11.3-2 Updated IVO to be RIVO. IPU 20U0150 issued 01-24-2020. (363) Exhibit 3.11.3-3 Updated Audit Codes "B" and "C" to remove prior year line information and corrected explanation for "C" . (364) Exhibit 3.11.3-5 Removed RPC "P" from the list. (365) Exhibit 3.11.3-6 Added new Special Processing Codes "4" and "6" . Revised all codes to delet prior year line information and corrected explanation for "C" . (366) Exhibit 3.11.3-6 Revised SPC B information. IPU 20U0024 issued 01-02-2020. (367) Exhibit 3.11.3-6 Updated IVO to be RIVO and revised SPC C. IPU 20U0150 issued 01-24-2020. (368) Exhibit 3.11.3-6 Removed SPC R, as no longer applicable and revised SPC K. IPU 20U0654 issued 06-01-2020. (369) Exhibit 3.11.3-7 Removed UA 83, updated UA 92 with rental or inheritance information. (370) Exhibit 3.11.3-11 Added note to the IRC 1001/Even Exchange row. IPU 20U0428 issued 03-13-2020. (371) Exhibit 3.11.3-11 Updated the title of IRM 20.1.1.2.3. (372) Exhibit 3.11.3-12 Deleted RIVO exhibit. All subsequent exhibits renumbered. (373) Exhibit 3.11.3-12 Added Return to the title and updated IVO to be RIVO throughout. IPU 20U0150 issued 01-24-2020. (374) Exhibit 3.11.3-13 Removed Refund Scheme from chart. IPU 20U0944 issued 08-26-2020. (375) Exhibit 3.11.3-14 Updated IVO to be RIVO. IPU 20U0150 issued 01-24-2020. (376) Exhibit 3.11.3-14 Added Economic Impact Payment (EIP) to the Glossary. IPU 20U0782 issued 07-10-2020. (377) Exhibit 3.11.3-17 Updated IRM references in Fill In Exhibit. IPU 20U0092 issued 01-14-2020. (378) Exhibit 3.11.3-17 Updated and renumbered Fill-In paragraphs; Removed #5, 8, 11, 14, 26, 29, 32, 42, 43, 51 and 52; deleted column with IRM references as unnecessary information. (379) Exhibit 3.11.3-18 Revised to update line numbers and added a column for both 1040A and 1040EZ. (380) Exhibit 3.11.3-18 Added new Exhibit 3.11.3-18 for TY17-TY14 conversions to Form 6114. IPU 20U0121 issued 01-21-2020. (381) Exhibit 3.11.3-18 Revised Schedules 1-3 section to include HCP in calculation for Schedule 2. IPU 20U0308 issued 02-24-2020. Effect on Other Documents IRM 3.11.3, Individual Income Tax Returns, dated November 29, 2019, (effective January 1, 2020), is superseded. This IRM also incorporates the following IRM Procedural Updates (IPUs) issued between January 2020 and October 2020: 20U0024, 20U0092, 20U0121, 20U0150, 20U0180, 20U0237, 20U0262, 20U0308, 20U0387, 20U0428, 20U0654, 20U0699, 20U0748, 20U0782, 20U0897, 20U0944, 20U1022, 20U1053. Audience Wage and Investment, Code and Edit Tax Examiners Effective Date (01-01-2021) James L. Fish Director, Submission Processing Wage and Investment Division 3.11.3.1 (11-17-2017) Program Scope and Objectives 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. Audience: Tax examiners in Wage and Investment Division (W&I), Submission Processing Service Centers, Code & Edit Units are the primary users of this IRM. Policy Owner: The Director of Submission Processing is responsible for the policies in this IRM. Program Owner: The Code & Edit/ERS IMF Section of the Paper Processing Branch of Submission Processing is responsible for the procedures and all updates related to this IRM. Primary Stakeholders: Submission Processing (SP). 3.11.3.1.1 (11-29-2019) Background 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. Instructions in this manual are for Form 1040 / 1040-SR, Form 1040A, Form 1040EZ and attachments to the return. 3.11.3.1.2 (11-29-2019) Authority 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 Policy Statements for Submission Processing are found in IRM 1.2.1, Servicewide Policy Statements. 3.11.3.1.3 (11-17-2017) Responsibilities The Director, SP Office is responsible for monitoring operational performance for the Submission Processing campus. The Operations Manager is responsible for monitoring operational performance for their operation. The team manager/lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties. The team employees are responsible for following the instructions found in this IRM and maintaining updated IRM procedures. 3.11.3.1.4 (11-17-2017) Program Objectives and Review Program Goals: To timely review and edit all returns received in Code & Edit (C&E). Program Reports: The Monitoring Section under Submission Processing Program Management/Process Assurance monitors the Code & Edit reports. Program Effectiveness: The program goals are measured by the following reviews: Embedded Quality Submission Processing (EQSP) Balanced Measures Managerial Reviews Annual Review: The processes included in this manual are reviewed annually to ensure accuracy and promote consistent tax administration. 3.11.3.1.5 (11-17-2017) Terms/Definitions/Acronyms See Exhibit 3.11.3-13 for a glossary of frequently used terms and acronym listing. 3.11.3.1.6 (11-29-2019) Related Resources Job Aid 2431-009, Coding & Editing Individual Income Tax Returns - Current Year Job Aid Form 1040/1040-SR and Job Aid 2431-010, Coding & Editing Individual Income Tax Returns - Prior Year Job Aid Form 1040, Form 1040A, and Form 1040EZ, were developed as reference guides for this manual. This manual refers the tax examiner to clarifying information or exhibits in the Job Aid, where appropriate. When a conflict between any referenced material and the IRM instructions occur, the IRM instructions take precedence. 3.11.3.2 (11-29-2019) General Guidelines Instructions in this manual are for a typical return. Apply the instructions as far as possible when a situation is not explained. 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 appropriate. Exception: Do not separate returns that are identified as Dual Status, Streamline or Forms 1045. Take no action when there is not a specific instruction for a situation. Refer conflicts between general and specific instructions, unusual situations, and complex cases to your work leader. Any line in this manual which is marked with a "#" is for official use only and must not be disclosed. IRM deviations must be submitted in writing following the instructions in IRM 1.11.2.2, Internal Management Documents System - Internal Revenue Manual (IRM) Process - IRM Standards, and elevated through appropriate channels for executive approval. 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 3.11.3.2.1 (12-11-2020) Programs Worked 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. Austin also works ITIN program 4317X (Forms 1040). 3.11.3.2.2 (03-06-2020) Identifying "Numbered" and "Unnumbered" Returns 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. An "unnumbered" return has no DLN. These documents are numbered after coding and editing. Unnumbered returns may be removed from the block, as instructed. A numbered return found in an unnumbered batch should be pulled for Work Leader. The Work Leader will research for TC 150: No TC 150 found, delete DLN, continue processing. TC 150 posted, no Form 3893 attached, route to 1040X. 3.11.3.2.2.1 (01-03-2017) Document Locator Number (DLN) 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. The sixth, seventh, and eighth digits in the DLN make up the Julian date. The Julian date is the numeric day of the year. For example, April 15, 2021, is Julian date 105, which is the 105th day of 2021. The twelfth and thirteenth digits of the DLN are the serial number. Returns in a block are numbered from "00" to "99" . The maximum number of returns in a numbered block is 100. Numbered returns in a block must be kept in serial number order. 3.11.3.2.3 (01-01-2016) Routing Completed Work 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. 3.11.3.3 (11-29-2019) General Instructions The instructions in this manual are for Form 1040, Form 1040-SR, Form 1040A and Form 1040EZ. Form 1040-SR was introduced for Tax Year 2019 (TY19). The line numbers are identical to Form 1040. All instructions for Form 1040 apply equally to Form 1040-SR. Schedules 4, 5, and 6 were obsoleted in 2019. 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 3.11.3.3.1 (11-29-2019) Stamping Tax Examiner (TE) Numbers Every Code & Edit Tax Examiner (TE) is assigned a unique TE Number. 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. 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. Line through the TE number when corresponding and the return is going to be sent back to the taxpayer. 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). 3.11.3.3.2 (11-29-2019) Transcription Lines (T-Lines) and Transcription Compute Lines (T-Compute Lines) 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. 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. 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. Use the tax form instructions when computing T-Compute Line totals unless other directions are provided in the line-by-line instructions. 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. Correct the entry by referring to other schedules, attachments, or entries on the return only when directed. 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.) Delete an obviously misplaced amount and edit to the correct T-Line or T-Compute Line, when appropriate. (See Figure 3.11.3-1b.) Dummying of schedules may be required. Use attachments to prepare "dummy" forms or schedules when they are required to support entries on transcribed lines. Edit the combined total of the amounts when a T-Line or T-Compute Line has multiple entries. (See Figure 3.11.3-2.) Do not math verify the transcribed lines on forms or schedules, unless specifically directed to do so in the line-by-line instructions. Edit line numbers for T-lines that have significant entries when line numbers are missing or incomplete. Figure 3.11.3-1 Editing Misplaced EntriesThis figure contains two separate examples, which are listed as 1a and 1b.Figure 3.11.3-1a shows how to edit a misplaced entry when the meaning of a T- line has been changed. The income portion of Form 1040 is shown. The taxpayer has changed the meaning of line 7a by lining through Other Income. and adding Child Support received. Dollar amount 3600.00 has been entered by the taxpayer. An X is edited by the tax examiner to delete this entry.Line 2b contains dollar amount 45.13.Line 7a contains dollar amount 3,600Line 7b contains dollar amount of 16671.82Figure 3.11.3-1b shows how to edit a misplaced entry when the T- line entry is misplaced. The income portion of page one of Form 1040 is shown.Line 1 contains dollar amount 27061.Line 7a contains dollar amount 27061, a red x has been edited to the left of the amount.Line 7b contains dollar amount 27061.The taxpayer has totaled entries to line 7a when the total should have been placed on line 7b. A red X is edited by the tax examiner the left of the dollar amount on line 7a. Dollar amount 27061 is edited to the correct line 7b. A misplaced entry can also be moved by using an arrow. Please click here for the text description of the image. Figure 3.11.3-2 Editing Multiple EntriesA completed Schedule SE is shown. Name of person with self-employment income is R.E. GraySocial Security number of person with self-employment income is 000-00-5734Line 2 Net profit or (loss) from Schedule C, line 31, Schedule K-1 (Form 1065), box 14, Code A (other than farming); and Schedule K-1 (Form 1065-B), box 9, code J1, Ministers and members of religious orders, see instructions for types of income to report on this line. See instructions for other income to report. Dollar amount 796 is present on line 2.Dollar amount 3854 is also present on line 2 under dollar amount 796.Tax examiner has edited red X's to the left of the dollar amounts present on line 2, combined the amounts and edited the total dollar amount of 4650 to the left of line 2. Please click here for the text description of the image. 3.11.3.3.3 (12-11-2020) Transcribed Schedules and Forms 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 77A. 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. 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. When a return has a large number of non-transcribable forms, "X" the top page and combine the remaining pages together with a rubber band, staple, or clip. Note: When instructed to "X" the page, edit the "X" across the entire page. Delete any form that shares a sequence code with a transcribed form. Note: Examples include, but are not limited to the following: - Form 2106 (Seq. 54) (TY07 and prior) - Form 3468 (Seq. 52) (TY09 and prior) - Form 3903 (Seq. 62) (TY10 and prior) - Form 5884-B (Seq. 65) - Form 8621 (Seq. 69) - Form 8801 (Seq. 74) - Form 8829 (Seq. 66) (TY09 and prior) - Form 8862 (Seq. 43A) - Form 8949 (Seq. 12A) (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) "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. If a non-transcribable form or schedule is found between pages 1 and 2 of 2020 - 2018 Form 1040 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. For transcribed forms or schedules with multiple pages, rearrange the pages so they are together and in the proper order (page 1, page 2, etc.). Delete duplicate forms or schedules with the exact same amounts that are filed for the same taxpayer. 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. 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 RPC’s 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). 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 (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 4136 23 Form 4137 24, 25 Form 4684 26 Form 4797 27 Form 4972 28 Form 5329 29, 30 Form 6198 31 Form 6251 32 Form 8615 33 Form 4835 37 Form 8839 38 Form 8853 39 Form 8814 40, 41, 42 Schedule EIC 43 Schedule H 44, 45 Schedule 8812 Form 8812 (TY2011 and prior) 47 Form 8606 48, 49 Form 8863 50 Form 4952 51 Form 8889 52, 53 Form 8880 54 Form 8995 (TY19 and later) 55 Form 8995-A (TY19 and later) 55A Form 8995-A, Schedule C (TY19 and later) 55D Form 8888 56 Form 8978 (TY19 and later) 57 Form 5405 58, 59 Form 8917 60 Form 8919 61, 62 Form 8958 63 Form 8941 65, 66 Form 6252 (TY19 and later) 67 Form 8910 68 Form 8936 69 Form 8867 70 Form 8959 71 Form 8960 72 Form 8962 73, 74 Form 8965 (TY18 and prior) 75 Form 965-A (TY19 and later) 76 Schedule LEP (TY19 and later) 77A Form 8938 175 3.11.3.3.4 (01-01-2016) Internal-Use Forms 3471 and 4227 Code and Edit uses the following two general internal-use forms: Form 3471, Edit Sheet Form 4227, Intra-SC Reject or Routing Slip The conditions requiring use of these forms are found in the line-by-line instructions. 3.11.3.3.4.1 (12-11-2020) Form 3471 - Edit Sheet Form 3471, Edit Sheet, is transcribed as sequence code number “02”. Edit money amounts on Form 3471 in dollars only for all form types (1040/A/EZ). 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. Edit Form 3471 as follows: Form 3471 Action Lines 1, 2 and 3 - Unallowable Codes and amounts Edit all Unallowable Codes in the order found. When there are more than three unallowables, edit the first two on lines 1 and 2, and Unallowable Code "98" on line 3 with no money amount. Edit the remaining Unallowable Codes and amounts in the Processing Memo space. Note: For more information on Unallowable Codes, refer to IRM 3.11.3.3.7.6. Line 6, Late filing code Returns may be received from Examination or Collection with penalty and interest amounts entered. These amounts may be edited on the return or the Form 3471 may 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. 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≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ 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: The return has a received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 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. 3.11.3.3.4.2 (11-17-2017) Form 4227 - Intra-SC Reject or Routing Slip 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. Take the following actions when a numbered return needs research, referral, or action before further processing: Edit the correct Action Code. Prepare Form 4227 and note the reason for rejection. Staple below the caption area of return. Leave the return in the block. Prepare Form 4227 when an unnumbered return/document is withdrawn from processing, and: If the return/document is Then Leaving the campus, Pull the document for routing to Receipt and Control for shipment to appropriate campus. Not leaving the campus, Pull the document for routing to the appropriate function. 3.11.3.3.5 (12-11-2020) Action Trail An "Action Trail" is written on a return/document as a record of the actions taken. Always leave an Action Trail when Computer Condition Code "Y" is edited. Give the reason for the "Y" code in the Action Trail. Edit an Action Trail when a return/document is detached. For example, notations such as "detached 1040X" or "detached taxpayer correspondence" must be made on the return. 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. 3.11.3.3.6 (12-11-2020) Attachments to Return Examine all attachments to the return. Leave the attachments with the return unless specifically instructed otherwise. Refer to the Attachment Guide in Exhibit 3.11.3-1 for specific attachment-by-attachment instructions. Research either an attachment or a notation on the return, as appropriate. 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 should be hand carried to the manager or work leader. Take either of the following actions when there is a notation on the return that indicates it needs to be routed elsewhere: Edit the information on a blank piece of paper. Photocopy the notation. Generally, all taxpayer-initiated correspondence must be responded to within 30 days. 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. 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. Route any taxpayer-initiated correspondence from an informant claiming they know of an individual or business who is not claiming the proper amount of income on a tax return or claiming they know of an individual who is claiming their dependent/exemption or filed a Form 3949-A, Information Referral, to Ogden following PII guidelines. When received with Form 1040, do NOT detach, route all documents as indicated to Ogden. Do not correspond with taxpayer. 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: Edit Action Code "460" , sanitize any credit card information on the return and continue processing. 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. 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). 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. 3.11.3.3.6.1 (12-11-2020) Detached Documents 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" . 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: Current date on current year returns if before ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, otherwise use the received date in "MMDDYY" format. Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on a timely return with no received date, edit a date of "041521" . Tax period in "YYMM" format. Form from which detached. Taxpayer's name(s). Primary/secondary taxpayer's identification number(s). Taxpayer's address. Note: When sending a return back to a taxpayer, do not detach any documents. Exception: Detach and process any remittance. Do not mail a remittance back to the taxpayer. Internally route detached items using Form 4227. 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. 3.11.3.3.7 (01-01-2019) Processing Codes Certain conditions require the editing of processing codes. There are six types of processing codes. They are: Action Code Audit Code Computer Condition Code (CCC) Return Processing Code (RPC) Special Processing Code (SPC) Unallowable Code (UAC) Processing codes may be either alpha or numeric. Use CAPITAL BLOCK LETTERS when editing codes that are alphas. It is critical that processing codes are edited legibly. Refer to Job Aid 2431-009 and Job Aid 2431-010 for an illustration of the editing locations of processing codes. The edited location of these codes may vary by return type. When other functions have edited CCCs, RPCs, SPCs, etc., in the wrong location, delete the coding and edit it to the correct location. Re-edit any valid black edit marks in red on photocopied returns, unless editing is underlined in red. The conditions for editing processing codes are located in the line-by-line instructions. 3.11.3.3.7.1 (11-29-2019) Action Code An Action Code is a three-digit numeric character used to reject a document and identify the reason for rejection. Assign only one Action Code to a document. Edit Action Codes in the following priority: "300" "310" "4XX" "6XX" "2XX" "3XX" 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. Edit the Action Code as follows: Form 1040: edit in the center bottom margin directly below Form 1040, page 1. TY17 and prior: edit in the center bottom margin on page 1 of Form 1040A, and 1040EZ. Refer to the table in Exhibit 3.11.3-2 for an explanation of each Action Code. 3.11.3.3.7.2 (11-29-2019) Audit Code An Audit Code is an alpha or numeric character used to identify questionable conditions for Examination. Edit Audit Codes as follows: Form 1040: edit horizontally in the right bottom margin directly below Form 1040, page 1. TY17 and prior: horizontally in the right-bottom margin on page 1 of Form 1040A or Form 1040EZ. Refer to the table in Exhibit 3.11.3-3 for the explanation of each Audit Code. 3.11.3.3.7.3 (11-29-2019) Computer Condition Code (CCC) 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. When CCC "3" is edited, it must be first. Always edit an Action Trail when CCC "Y" is edited. Edit the CCC horizontally in the following location on: Form 1040 - blank area to the right of "Spouse itemizes on a separate return or you were a dual-status alien" . TY17 and prior Form 1040A - in the upper-center portion of the filing status area. TY17 and prior Form 1040EZ - to the left of line 1, under "Foreign Province/State/County." Refer to the table in Exhibit 3.11.3-4 for an explanation of each CCC. 3.11.3.3.7.4 (12-11-2020) Return Processing Code (RPC) 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. Edit RPC’s horizontally in the left bottom margin directly below Form 1040. Refer to the table in Exhibit 3.11.3-5 for an explanation of each RPC. 3.11.3.3.7.5 (12-11-2020) Special Processing Code (SPC) 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. Edit SPCs vertically in the right margin next to the spouse’s social security number. Refer to the table in Exhibit 3.11.3-6 for an explanation of each SPC. 3.11.3.3.7.6 (11-17-2017) Unallowable Code (UAC) An Unallowable Code (UAC) is a two-digit numeric character used to identify certain conditions on a tax return that are unallowable by law. Search all attachments to find unallowable items. ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Exception: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 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. Prepare Form 3471 using the instructions at IRM 3.11.3.3.4.1 when coding unallowables. Refer to the table in Exhibit 3.11.3-7 for an explanation of each UAC. 3.11.3.4 (01-01-2016) Editing Editing is done to prepare returns and attachments for transcription and computer processing. The editing instructions described in more detail in this subsection are about: Types and uses of specific edit markings Dollars and cents editing 3.11.3.4.1 (01-01-2019) Edit Markings, General 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. Never alter, erase, or obliterate a taxpayer's entry. Edit all markings legibly. Any reference to "significant entry" or "significant amount" is defined as a positive or negative number/dollar amount other than zero. 3.11.3.4.2 (01-01-2016) Types of Edit Markings Different edit conditions require different types of edit markings. Edit markings consist of: Circling Underlining Arrowing "X" -ing Bracketing Checking 3.11.3.4.2.1 (11-17-2017) Circling Circle information that is not to be transcribed when editing: Caption data (except date of death) Received dates Filing status boxes Other cases described in the line-by-line instructions Note: Never circle dollar amounts. If an entry or editing was circled out in error, re-edit or arrow to the proper location if necessary. 3.11.3.4.2.2 (01-01-2016) Underlining Underline when editing: The additional information line and other caption data Tax period on Prior Year returns Other cases specified in this manual 3.11.3.4.2.3 (01-01-2016) Arrowing Use arrowing when indicating: The correct T-line for a misplaced entry. (See Figure 3.11.3-3.) Transcription is to continue (where indicated in line-by-line instructions) Note: A double-ended arrow or "underline with arrow" may be used to edit a dollar amount to multiple T-lines. (See Figure 3.11.3-3.) Figure 3.11.3-3 Arrowing. Note: Use caution when arrowing to a line that requires dollars and cents editing.This figure contains two separate examples, which are listed a and b.Part a: Moving an amount to a different T-line. Shown is a portion of Form 1040 from lines 16 through 24.Line 16, Tax, dollar amount 6051.00 on line 16.Line 18 Dollar amount 6051.00 on line 18.Line 21, Dollar amount 6051.00 on Line 21.A red arrow is edited between dollar amount 6051.00 on line 21 downwards to blank line 24.Text at bottom of graphic reads: An arrow indicates to ISRP that there is an entry that should be entered on a different line because it is misplaced or, as shown here, because it needs to be moved from a non-transcribed line to a transcribed one.Part b continues: Editing an amount to two T-lines (Method used depends on Service Center). Shown is a portion of Form 1040 from lines 3b through 9.Line 5b, Taxable amount, Dollar amount 5689.Line 9 Add lines 1 through 8 for Total income. Dollar amount blank.Amount on line 5b is underlined and a red arrow is edited from the dollar amount 5689 on line 5b to blank line 9.Text at bottom of graphic reads: An underline with a single-ended arrow indicates that a dollar amount should be in two locations. Her, for example, the arrow indicates that the amount of 5689 should be entered on line 9, but the underline indicated that the amount should also be entered on line 5b. Please click here for the text description of the image. 3.11.3.4.2.4 (12-11-2020) "X" -ing An "X" may be used to delete an entry or an entire form or schedule. Place an "X" to the left of an amount or entry on a T-line when it is not to be transcribed. When adjusting an amount, edit an "X" to the left of the amount on the T-line and edit the adjusted amount to the left of the "X" . "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. Edit an "X" across the entire form or schedule if it must be deleted. "X" a transcribed schedule or form when it is blank or has no significant T-line entry, unless specifically instructed otherwise. "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. 3.11.3.4.2.5 (12-11-2020) Bracketing 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. Do not bracket the following: Existing negative amounts on a return. Amounts with preprinted brackets on the form/schedule. 3.11.3.4.2.6 (01-01-2016) Checking Use the check mark as directed in line-by-line instructions to indicate the information needs to be transcribed by ISRP. 3.11.3.4.2.7 (03-06-2020) Edit Marks Made by Other IRS Functions 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 CIS/AM). 3.11.3.4.3 (12-11-2020) Dollars and Cents Editing 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. For TY18 and prior only, draw a vertical line between the dollars and cents figures when dollars or cents are in the wrong column: On each line that is to be transcribed, or 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. Dollars and cents editing is required on certain T-lines for any of the following conditions: 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. An entry is illegible. When computing and editing an entry as directed in line-by-line instructions. Exception: Do not edit "00" to indicate no cents. Edit all forms and schedules in dollars only, with the following exceptions: Form 1040 - lines 24 through 38 Schedule 3, lines 8 through 12f Form 6001 and 6001-A Form 3531 3.11.3.5 (01-01-2016) Correspondence Correspondence is necessary when a return is incomplete or illegible and it cannot be processed. 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 3.11.3.5.1 (12-11-2020) General Correspondence Information 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, Form 8812, Schedule 8812 and Schedule EIC; only correspond for these forms when the tolerance in the line-by-line IRM instruction is met. Do not correspond with a taxpayer more than one time, unless specifically directed to in the line-by-line instructions. 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 him/herself has signed in the wrong area and arrowed their signature to the right place. Do not correspond when information is missing and any of the following conditions apply: The tax return is for TY10 and prior. (See IRM 3.11.3.70.3(6).) Exception: Correspond for signature regardless of tax year. (See IRM 3.11.3.14.5.) "Substitute for Return Prepared by IRS" is noted on the return. The return has been "Dummied" . "Section 6020(b)" or "prompt assessment" is written on the return. The return has a notation, statement or letter attached indicating the return is a copy or amended. Notations may include "corrected" , "revised" , "tentative" , "amended" , "superseding" , "copy" or similar. Also see the amended return instructions in IRM 3.11.3.6.2.1 for 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 may be identified. The taxpayer has written "For payment only" , or included a similar statement on the return. International Returns (except AUSPC) A "Hardship" case is indicated. (See IRM 3.11.3.6.1.4.) There is an indication the return has been prepared (dummied) by Accounts Management. (See IRM 3.11.3.6.2.1(3).) Do not correspond for missing forms or schedules to support a credit or exemption claimed for a dependent when both of the following conditions apply: The return was received with Form W-7 attached. The ITIN application was rejected for the person who would have entitled the taxpayer to the credit and/or exemption. Note: Do not correspond for divorce decree, Form 8332, or Form 2120 when there is an indication the ITIN application(s) was rejected for the qualifying dependent(s). With the exception of returns coming from Collection and Correspondence Imaging System (CIS), send an unnumbered return to the originating area indicating what information is required. 3.11.3.5.2 (12-11-2020) General Correspondence Procedures 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. 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 If Form 1040 is missing page 1 or page 2 (Form 1040-SR, page 1, 2, or 3), take the return to your work leader for research. Note: Work leader will follow the incomplete return instructions at IRM 3.11.3.6.2.4. 3.11.3.5.2.1 (12-11-2020) Correspondence When Sending Return Back to the Taxpayer Send a return back to the taxpayer in the following specific circumstances: A misfiled return. (See IRM 3.11.3.6.2.16.) Early filed loose Schedule H for tax year 2021. Use Notice 1208, You Filed Schedule H (Household Employment Taxes) Too Early Current year Loose Schedule H (received April 15, 2021 or earlier) - Use Notice 1207, File Schedule H (Household Employment Taxes) With Your Individual Income Tax Return Missing or invalid signature(s) (See IRM 3.11.3.14.5.) Exception: Do not mail back when: Numbered Secured CP 01H, 11, 12, 14/14H, 22 series, 23, 54, or 2000 is attached. See Exhibit 3.11.3-1 for processing procedures. LTR 2566 or 3219C unless Process as Original is present. Form W-7 or Form W-7(SP) is attached, route to ITIN Signed returns missing documentary evidence, including fiduciary and Power of Attorney (POA) returns. Reminder: Do not correspond when conditions in 3.11.3.5.1(3) apply. 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. Stop editing the return after identifying a missing or invalid signature. Examine the return for other missing items. Complete Form 3531 (See Exhibit 3.11.3-16): - Mark the correct signature box. - Request all missing required information. Exception: FSPC, 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. Prepare Form 3531 using the following steps: Write legibly. Check the applicable missing signature box. Note: Check box "25" on decedent returns, see IRM 3.11.3.10.1(4). Check all the appropriate box(es). Enter money amounts in dollars and cents. Bracket negative amounts. Prepare the return to be sent back to the taxpayer using the following steps: Line through your TE number. Remove all internal documents (such as Form 3471 or Form 4227) if attached. Note: If second correspondence is required, remove original Form 3531. Do not detach attachments. Delete any IRS Received Date. Perfect a missing or incomplete address from an attached envelope. If unable to perfect from an attached envelope, research. Edit an Action Trail to notate "Returned for Signature" (stamped or edited), Form 3531 and any other 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, 8, 11 MMDDYY). 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. Remove the return from the batch and place it in the designated area. 3.11.3.5.2.2 (12-11-2020) Correspondence When Not Sending Return Back to the Taxpayer Complete all possible editing and identify all correspondence issues, when you are not sending the return back to the taxpayer. Perfect a missing or incomplete address from an attached envelope. If unable to perfect from an attached envelope, research. Request all missing required forms/schedules in the taxpayer correspondence. Do not attempt to dummy missing forms/schedules when other correspondence is required. 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: Form 6001 is used to generate Letter 12C, Individual Return Incomplete for Processing: Form 1040. (See Exhibit 3.11.3-14.) Form 6001-A, Letter 12C Correspondence Action Sheet (PY), is used to generate Letter 12C for TY19 and prior returns. Form 3696-A, IDRS Correspondence Action Sheet, is used to generate miscellaneous Correspondex (C) letters (e.g., Letter 369C used to deny reasonable cause). Prepare Form 6001/Form 6001-A to initiate Letter 12C using the following steps: Write legibly. Check all the applicable boxes. Complete all information required for each paragraph selected (e.g., forms, lines, amounts, etc.). Enter money amounts in dollars and cents. Bracket negative amounts. Use Exhibit 3.11.3-17, Correspondence Fill-in Paragraphs, when paragraph h is selected. Note: Take all other fill-in paragraphs to your manager/lead for his/her text approval and initials next to paragraph h. When paragraphs J - O are not enough to request all missing forms and schedules, use paragraph h with fill-in paragraph "39" instead. Always select the applicable fax number paragraph (k - n) specific to your campus. Note: No entry is required in the fill-in fields of the fax number paragraph (k - n). Attach the CAS to Form 1040 below the caption area. Caution: When stapling the correspondence sheet face up to the return, ensure you are attaching only one return. Edit Action Code "211" on all returns requiring correspondence when the return is not being mailed back to the taxpayer. (See Figure 3.11.3-4.) Exception: Edit Action Code "224" when corresponding for missing Form 8962 unless Action Code "300" can be edited. For TY17, edit Action Code "300" on all returns when any correspondence is required and 965 or Sec. 965 is noted on return or when line 73 box d is marked or when Form 965 is attached to return. If a received date is required and not present on the return, edit the received date before corresponding. Refer to the received date editing instructions at IRM 3.11.3.8. Figure 3.11.3-4 Corresponding on Form 6001Shown is a partially obscured completed Form 1040, showing address area of page 1 and far right side showing dollar amounts on Schedule A. Action Code 211 has been edited by the tax examiner to the bottom center margin of page 1, Form 1040. Also shown is a completed Form 6001, Letter 12C Correspondence Action Sheet. Text box reads: Form 8283 is not attached.Tax Examiner has checked box J to denote Missing Form and has written 8283 for field 12 on Form 6001.Tax Examiner has written dollar amount 1850.00 for field 13 on Form 6001.Tax Examiner has written 12 for field 14 on Form 6001 to identify the line number on Schedule A for missing Form 8283.Caption at the bottom of the graphic reads as follows: Edit Action Code 211 when corresponding using Form 6001, which the tax examiner edited in the bottom center margin of Form 1040. Please click here for the text description of the image. 3.11.3.5.3 (11-29-2019) General Response Procedures Move all correspondence sheets to the back of the return. If second correspondence is required, remove original Form 3531. 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. When there is an indication of a possible disclosure issue, take return to work leader. 3.11.3.5.3.1 (01-04-2016) Reply Instructions Perfect the return. Edit the received date on returns identified as "Returned for Signature" , following the instructions at IRM 3.11.3.8.2(3). 3.11.3.5.3.2 (12-11-2020) No Reply/Incomplete Reply/Undeliverable Correspondence 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. Edit CCC "U" on all no reply returns, except when any of the following apply: Withholding support was the only item not provided. The correspondence was not required. One or more correspondence conditions were not included when the first correspondence was sent. If a no reply correspondence condition is not identified in the chart below, edit CCC"U" and take no further action. Unless there is evidence to the contrary, assume that all correspondence conditions were included when the correspondence was sent. If CCC "3" is edited, edit it first. Refer to the following Correspondence Action Chart. All line numbers are for current year. 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. Note: TY17 and Prior Only Dependent Position 2 missing supporting documentation to substantiate claim for dependent. (Form 8332, Form 2120 or divorce decree is not present.) Entries must be present on Forms 8332 or 2120. "X" Dependent Position 2. Signature Missing Jurat Missing or one signature on a joint return Photocopied signature Refund on a joint return and spouse refuses to sign Condition requiring two witnesses Minor child's return signed by other than a parent or relationship is not indicated Route undeliverable returns to the Entity Function and do not edit CCC "U" . If the taxpayer responds and sends back a return that shows the signature present in an area other than the Sign Here area under the jurat on the return, or has signed on Form 3531, send the return back to the taxpayer a second time. Exception: If the taxpayer signed an attached CP59 or Letter 143C, do not correspond for a signature under the jurat on the return. This signature is acceptable. If the return is not signed after correspondence (or second correspondence if applicable) for signature, edit Action Code "640" and continue processing. Exception: If the taxpayer signed an attached CP59 or Letter 143C, do not correspond for a signature under the jurat on the return. This signature is acceptable. Note: Edit only the caption area when Action Code 640 is edited . Blank return with missing signature. If the taxpayer returns an unsigned blank return, edit RPC "L" and continue processing. Also edit CCC "B" . Power of Attorney missing. If the return is not signed by the taxpayer, edit CCC "3" . Fiduciary Returns - required documentary evidence not present. Edit CCC "3" . Decedent Return a. Date of Death missing a. Edit CCC "3" . b. Required documentary evidence not present. b. Edit CCC "3" . Do not edit the AIL or CCC "L" or "W" . c. Proper additional information line (AIL) cannot be determined. c. Edit CCC "3" . Do not edit the AIL or CCC "L" or "W" . d. Form 1310 not signed or is incomplete. d. Edit CCC "3" . Do not edit the AIL or CCC "L" or "W" . e. Signature missing on 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 13 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. Schedule 1, Line 3 - Schedule C Prepare dummy Schedule C. Edit a positive amount on line 1. Edit a negative amount on line 28. Edit Audit Code "B" when the amount on line 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 8 - Gambling net loss indicated and Schedule C not attached. "X" the amount. Schedule 1, Line 8 - Sec. 965 noted and Form 965-A not attached. Edit RPC "F" . For TY17, also edit Action Code 300. Schedule 1, Line 9 - Gain or loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ and lines 7 through 21 are blank. Edit the amount on line 9. Schedule 1, Line 11 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 2106 not attached. "X" the amount. Schedule 1, Line 12 - Amount claimed and Form 8889 not attached. "X" the amount. Schedule 1, Line 13 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 3903 not attached. "X" the amount. Schedule 1, Line 22 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and not supported by entry on lines 10 through 22, dotted portion, or a statement. "X" the amount on Form 1040, Line 8a. Schedule 2 not attached. Prepare dummy Schedule 2. 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 $137,700 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 or Form 8919 not attached. "X" the amount. Schedule 2, Line 6 - Form 5329 not attached, no indication of No on line 59, and the amount claimed is not 10% of any combination of line 4b or attached Form(s) 1099-R. Prepare a dummy Form 5329. Edit the amount from line 6 to line 17 of Form 5329. Process for the primary taxpayer if a determination cannot be made. Schedule 2, Line 7a - Amount claimed and Schedule H not attached. "X" the amount. Schedule 2, Line 8 - Amount claimed and Forms 8959 and 8960 not attached, and no indication from box c. "X" the amount. Schedule 3 not attached. Prepare dummy Schedule 3. Schedule 3, Line 1 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 1116 not attached. "X" the amount. Schedule 3, Line 2 - Amount claimed and Form 2441 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 5 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ claimed and Form 5695 is not attached, or any amount if only page 2 is attached. "X" the amount. Schedule 3, Line 6 - amount claimed and not supported by form/schedule. "X" the amount. Schedule 3, Line 10 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and either no Form W-2 is attached or not all Forms W-2 are attached. "X" the amount. Schedule 3, Line 11 - Any amount claimed and Form 4136 not attached. "X" the amount. Schedule 3, Line 12a-12e - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 2439 or other refundable credits are 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 (f) or (h), corresponding column (e) box (Check if any amount is not at risk) is marked, and Form 6198 not attached. "X" line 31, Schedule E. Schedule F - Box on line 36b checked, line 34 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 6198 not attached. 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 $137,700 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) - Any entries present in Part III must be supported by the source form or show an EIN in Column b, Part III. "X" any credits claimed in Part III not supported by the correct source form or without an EIN in Column b, Part III. Form 4137 - Cannot determine correct allocation. Process Form 4137 for the primary taxpayer if primary wages are $137,700 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 3.11.3.45.15.) Form 8917 - Name control and/or TIN cannot be perfected or cannot determine which taxpayer is claiming the deduction. "X" Form 8917. Form 8919 - Unable to determine which taxpayer is filing Form 8919. Process Form 8919 for the primary taxpayer if primary wages are $137,700 or less. Otherwise, process Form 8919 for the secondary taxpayer. 3.11.3.6 (12-11-2020) Special Situations and Returns 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. The instructions included in this subsection of the manual include the following special situations: Combat Zone and Other Military Operations Killed in Terrorist Action (KITA) Natural Disaster/Emergency Relief Program Hardship Examination Cases Frivolous Filer/Non-Filer returns Identity Theft Suicide Threats 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 System (CIS) 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 3.11.3.6.1 (01-01-2016) Special Situations Follow the instructions in this subsection of the manual in addition to the regular editing instructions, unless otherwise specified. 3.11.3.6.1.1 (01-01-2016) Combat Zone and Other Military Operations 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: Members of the armed forces and certain persons supporting them in a Combat Zone designated in an Executive Order by the President. Members of the armed forces serving in a contingency operation designated by the Department of Defense or arising by operation of law. 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. Members of the armed forces and certain persons supporting them in a Qualified Hazardous Duty Area (designated by an act of Congress). Generally, though, military personnel have the same filing requirements as civilians. 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. Follow normal correspondence procedures when required information is missing from the return. (See IRM 3.11.3.6.1.1.2.) 3.11.3.6.1.1.1 (12-11-2020) Military Operations 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, Edit CCC "M" . Edit CCC "P" . Note: If the taxpayer shows no wages present on line 1 Form 1040 withholding is significant on line 25a-25d and line 35a, Form 1040 shows a refund of all withholding, edit RPC "G" . 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, Check to see if Form W-2 is from the Department of Defense (DOD) or Defense Finance and Accounting Services (DFAS). If Form W-2 is issued by DOD or DFAS, take no action. 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, Edit CCC "D" . Edit CCC "M" if balance due. "Haiti" , "Operation Uphold Democracy" , "Operation GTMO" , 94 or later, Edit CCC "D" . Edit CCC "M" if balance due. "Somalia" , "Somalia Restore Hope" , 92 or 93, Edit CCC "D" . Edit CCC "M" if balance due. "UN Operation" , 92 or later, Edit CCC "D" . Edit CCC "M" if balance due. Note: Colombia is not a recognized military operation 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. Edit CCC "Y" and an Action Trail when the taxpayer excluded income due to combat or military pay. 3.11.3.6.1.1.2 (01-01-2016) Correspondence on Military Operation/Combat Zone Returns 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. Follow normal correspondence procedures when other required information is missing from the return. 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. 3.11.3.6.1.2 (11-29-2019) Killed in Terrorist Action (KITA) Route all returns identified as "KITA/KIA" , "KITA-Oklahoma City" , "KITA-9/11" or "KITA-Anthrax" to CIS/AM and notate KITA in the Action Trail. Note: Hand-carry KITA returns to the Work Leader unless batched as KITA or follow local procedures. Route Form 1040 returns when the taxpayer has written "Sec 692(d)(2)" on the "Other Payments" line with a money amount to the right, to CIS/AM and notate KITA in the Action Trail. 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 CIS/AM. 3.11.3.6.1.3 (11-29-2019) Natural Disaster/Emergency Relief Program The taxpayer may identify the name of a disaster or emergency on the front of his/her return or on an attachment. For TY16 and later, if there is a Federally declared disaster loss claimed on Schedule A and Form 4684, edit SPC "D" . If the taxpayer requests the refund be mailed to a temporary mailing address, edit Action Code "341" . Correspond for any missing required signatures, forms and schedules using Form 6001/6001-A. Do not send the return back to the taxpayer. Exception: Do not correspond for withholding, excess social security tax, or source of earned income. 3.11.3.6.1.4 (12-11-2020) Taxpayer Advocate Service (TAS) The Taxpayer Bill of Rights (TBOR) was adopted by the IRS in June 2014. Taxpayers have the right to receive prompt, courteous and professional assistance in their dealings with the IRS, to be spoken to in a way they can easily understand, to receive clear and easily understandable communications from the IRS, and to speak to a supervisor about inadequate service. IRS employees are responsible for being familiar with and acting in accord with all ten taxpayer rights. For more information about the Taxpayer Bill of Rights, see https://taxpayeradvocate.irs.gov/about-tas/taxpayer-rights. 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. 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. The work leader will determine if hardship criteria has been met and if so, complete the Form 911 if not already attached. Route the return with the Form 911 attached to the front, to TAS. Refer to Exhibit 3.11.3-1 for Form 911 routing instructions. 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. When local Taxpayer Advocate walks a return through Code and Edit on the basis of hardship, in addition to normal editing, perform all actions below: Edit CCC "O" . Edit CCC "Y" and an Action Trail. "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. 3.11.3.6.1.5 (01-01-2017) Examination Cases Ensure review boxes are established in Code and Edit for Examination (Exam). (See Exhibit 3.11.3-13.) 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 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. Edit the Received Date, if noted. Otherwise, follow the regular Received Date procedures in IRM 3.11.3.8. Do not correspond. Do not send the return back to the taxpayer. If the return cannot be processed, route the return to Examination for additional action using Form 4227. Note on Form 4227, "return to originator" . Pull an unnumbered return from the batch and route it to Examination. 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. 3.11.3.6.1.6 (12-11-2020) Frivolous Filer/Non-Filer Returns Ensure review boxes are established in Code and Edit for Frivolous Return Program (FRP). (See Exhibit 3.11.3-11.) Route to Frivolous Return Program (FRP) any return on which the taxpayer: Argues -for any reason- the filing of a tax return or the paying of a tax is not required. Makes use of a frivolous argument to reduce income or tax liability. (See (6) below for examples.) 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. Pull unnumbered returns and prepare Form 4227. Notate "Frivolous" . Leave numbered returns in the block and edit Action Code "331" , unless otherwise noted. When a return meets criteria for a frivolous filing determination as shown in paragraph (6) below, route the return to FRP, OSPC, M/S 4450. FRP will review the return and if it meets their criteria for frivolous filing, they will edit or stamp Audit Code "R" . Some common examples of frivolous returns are listed below. This list is not all-inclusive, but represents the current most common types of frivolous filings. See Exhibit 3.11.3-11 for 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 8, Schedule 1, to eliminate income even though taxpayer and employer are U.S. residents. Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 3.11.3.6.1.7 (01-01-2016) Identity Theft See Exhibit 3.11.3-1 when the taxpayer submits Form 14039, Form 14039 (SP), or police report(s) claiming Identity Theft. 3.11.3.6.1.8 (01-02-2019) Suicide Threats 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 @ *PGLD OEP. e-Fax @ (855)786-9490. Regular mail: Internal Revenue Service Office of Employee Protection P.O. Box 330500 Stop 30 Detroit, MI 48226 See IRM 25.4, Employee Protection, for more information. 3.11.3.6.2 (01-01-2016) Special Returns Follow the instructions in this section in addition to the regular editing requirements, unless otherwise instructed. 3.11.3.6.2.1 (01-02-2020) Amended Returns 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. The work leader will take the following actions: 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. Research results: • If a TC150 has posted for the tax period of the return, route to 1040X unit. • If there is already a return in ERS for the same tax period, route to Rejects. • If no TC150 has posted and no return is in ERS, continue processing as an original return. Process a return prepared (dummied) by Accounts Management as an original return and do not correspond for missing information or a signature. 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. 3.11.3.6.2.1.1 (01-01-2016) Amended Joint MFA or MFS Return If a return has "Amended Joint MFA" (married filing alien) or "Amended Joint MFS" (multiple filing status) stamped on top: Edit Action Code "460" . Prepare Form 4227 with instructions to route to Examination and leave the return in the batch. 3.11.3.6.2.2 (04-06-2016) Unprocessable Return A return is unprocessable when all the caption data is missing or illegible and the caption cannot be perfected from attachments or through research. Handle unprocessable returns as follows: If the return is Then Numbered, Edit Action Code "640" . 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. 3.11.3.6.2.3 (12-11-2020) Blank Return Edit RPC "L" and CCC "B" on returns with all zeros or no significant entries present, or edited from attachments, on any of lines 1 through 38. Reminder: Correspond for a missing signature on a blank return using Form 3531, box 7. 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. Treat the blank return as amended when a statement is present indicating that a return will be filed later. Route the return to 1040X. Edit CCC "E" when a statement indicates the taxpayer will have no future filing requirements (such as "final return" noted). Refer to the instructions in IRM 3.11.3.6.1.6 when the return has been filed as a frivolous filer return. Refer to IRM 3.11.3.6.2.20 for processing instructions when there is an indication the return is a Substitute For Return (SFR) or an Automated Substitute for Return (ASFR). If a return is blank and missing signature, correspond using Form 3531, box 7. 3.11.3.6.2.4 (12-11-2020) Incomplete Return If a Form 1040 or TY17 and prior Form 1040A is missing page 1 or page 2, (Form 1040-SR, pages 1, 2, or 3), take return to the work leader. The work leader will: Research for the status of the return, including CC ERINV for a possible ERS status. • If TC150 has posted, route to Form 1040X unit. • If there is already a return in ERS, route to Rejects. 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. If unable to correspond, destroy the page per classified waste procedures. 3.11.3.6.2.5 (12-11-2020) Uncomputed Return An uncomputed return is one filed by a taxpayer expecting the IRS to figure his/her tax. Do not confuse an uncomputed return with a return that has no tax due. Note: Do not edit CCC "B" on uncomputed returns. 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 3.11.3-5.) An unnumbered, uncomputed return can be sent back to the taxpayer when corresponding. Edit CCC "Y" and an Action Trail on an uncomputed return when both of the following conditions are present: Separate income amounts are shown for each spouse on a joint return, and No dependents are claimed in positions 1 through 6, or an allocation of dependents is indicated. Figure 3.11.3-5 Identifying an uncomputed return: Blank lines 16, 17, 18, 22, 24, 34, 35a, 36 and 37Shown is a portion of page 2 of Form 1040 and the taxpayer's Form W-2. The only entries present on Form 1040 are on lines 25a, 25d and 33 and all show a dollar amount of 4999.32.Lines 16, 17, 18, 22, 24, 34, 35a, 36 and 37 are blank.Form W-2 shows dollar amount 33348.00 in boxes 1, 3 and 5.Form W-2 shows dollar amount 4999.32 in box 2Form W-2 shows dollar amount 2067.58 in box 4.Form W-2 shows dollar amount 483.55 in box 6. Please click here for the text description of the image. 3.11.3.6.2.6 (03-12-2018) Blocked or Deferrable Income Return If a return with a notation of blocked or deferrable income is attached to another return: "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. If a return with notation of blocked, deferrable income or Rev. Rul. 74-351 is not attached to another return, take to work leader. The work leader will take the following actions: Research for the status of the original return using the primary TIN and the tax period of the return. Refer to Job Aid 2431-009 for command code instructions. Research CC IMFOLT for a TC150 to determine if a return has already posted. Research CC ERINV to determine if there is a return in ERS. 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." 3.11.3.6.2.7 (01-17-2017) Correspondence Imaging System (CIS) Returns CIS returns are identified by a unique 10 character alpha numeric identifier that begins with the letters CIS (e.g. CIS1A2BCD1). Process CIS returns as original filings and circle any notations of duplicate, amended or similar statements. Re-edit any valid black edit marks in red on photocopied returns. Exception: Do not re-edit CIS returns when editing is underlined in red. Correspond for any missing required information as identified in the line-by-line instructions (except for a missing signature). Exception: If correspondence is required and Form 13596 and/or Form 3893 is attached, route the return back to Accounts Management. 3.11.3.6.2.8 (01-01-2017) Combined Tax Liability Return 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. If any of the conditions in (1) apply, edit CCC "Y" and an Action Trail on the return. Take no action when the return shows an ITIN and supporting documents reflect an SSN for the same taxpayer. 3.11.3.6.2.9 (12-11-2020) Community Property or Registered Domestic Partnership Return If there is an indication of Registered Domestic Partnership, "RDP" , "CCA 201021050" , or "CCA" on the return or an attached Form 8958, Allocation of Tax Amounts Between Certain Individuals in Community Property States, or allocation statement, edit Action Code "430" . See IRM 3.11.3.58 for Form 8958 criteria for editing Action Code 430. "X" any fractional exemption claimed. "X" the amount claimed for Excess Social Security taxes when wages are less than 68,850. Note: The maximum amount of earnings subject to Social Security tax is $137,700. Half of that equals $68,850. Edit RPC "C" when there is an indication of a pro-rata share and both of the following conditions apply: A S-TIN is present Lines 1-7 Form 1040 and lines 1-8 and 10-22 Schedule 1 have no entries. 3.11.3.6.2.10 (12-11-2020) Form 8938, Statement of Foreign Financial Assets Use the following information for processing ALL Form 8938, Statement of Foreign Financial Assets, regardless of tax years. January through September - (Recovery Processing) October through December - (Simultaneous Processing) Process Form 1040 using current coding instructions, including the editing of CCC "H" . Fully code Form 1040, including the editing of CCC "H" . Only one Form 8938, pages 1 and 2, can be processed. If multiple Forms 8938 are attached, select the form that has the highest account, line 4 in Part V; or highest value, line 4 in Part VI, and delete the others. Note: Up to 25 pages of the "Continuation Statement" can be processed. 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. Place the Form 1040 with the Form 8938 attached in a designated bin for collection by Code & Edit Clerical function. Note: For TY17 and prior Forms 1040 or Forms 8938, do not pull, edit CCC "H" and continue processing. Reminder: Do not move or delete documents which will not be transcribed that are in order ahead of Form 8938. 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. 3.11.3.6.2.11 (04-10-2018) Form 8379, Injured Spouse Allocation Return An "Injured Spouse" claim may be filed by one spouse to protect his or her share of a joint overpayment. These returns either have "Injured Spouse" written on them or Form 8379, Injured Spouse Allocation, is attached. Form 8379 may be filed with an original return or by itself. Claims filed without an original return should be routed to ICT. 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. If an Injured Spouse claim is attached to a numbered return that is not in an Injured Spouse block: Attach Form 4227 and note "Injured Spouse" . Edit Action Code "611" . If a current year Form 1040X is attached to a return with an Injured Spouse indication, take the following actions: "X" the Form 1040X and do not detach the Form 1040X from the return. Rebatch the return to an Injured Spouse block following the instructions in (3) or (4) above. If correspondence is required on an Injured Spouse return, research for TC150 prior to corresponding: If TC150 is present, move the Form 8379 to the front, delete (X) the return and route to ICT. If no TC150 is present, correspond. 3.11.3.6.2.12 (12-11-2020) Form 8857, Innocent Spouse Relief Request 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: 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. Relief from Community Property Liability - An election made by a person who did not file a return as married filing jointly in a community property state and later showed that: • He or she did not include an item of community income in gross income that was attributable to the other spouse, and did not know or have reason to know of that item of community income. • AND considering all the facts and circumstances, it would be unfair to hold the taxpayer liable for the understatement of tax. Separate Liability Election - An election made by a person who filed a joint return and later claimed separate liability from their spouse. The electing spouse must be legally separated, living apart for 12 months or more, or no longer married to the spouse with whom he or she filed the joint return at the time the claim was filed and must not have actual knowledge of the item(s) giving rise to the deficiency. 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. Taxpayers are instructed to file Form 8857, Request for Innocent Spouse Relief, to request relief if they are making the above claims. 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. Innocent spouse relief requests are processed at Campus Support Operation (CSO) only. When the taxpayer either attaches correspondence to the return that identifies him/her as a claimant or when Form 8857 is attached to the return: Detach and date stamp the correspondence/Form 8857 and all supporting documentation. Edit Action Trails on both the return and the correspondence/Form 8857. Prepare Form 4227, notating "Innocent Spouse Request" and attach it to the detached item. Give the request to the work leader. Leave the return in the block and continue processing. Send all claims to CSPCdaily, using the following address:Internal Revenue Service CSO (Campus Support Operation) Stop #840F 7940 Kentucky Drive Florence, KY 41042 3.11.3.6.2.13 (12-11-2020) International Return 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, Planilla para la Declaración de la Contribución Federal sobre el Trabajo por Cuenta Propia (Incluyendo el Crédito Tributario Adicional por Hijos para Residentes Bona Fide de Puerto Rico) Form 1040-SS, U.S. Self-Employment Tax Return Form 1042-S or letter signed by "Competent Authority" , Form SSA-1042S, or Form RRB-1042S Form 2555, Foreign Earned Income Form 2555-EZ, Foreign Earned Income Exclusion Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI) Form 8288-A, Statement of withholding under Section 1445 Form 8689, Allocation of Individual Income Tax to the U.S. Virgin Islands Form 8804, Annual Return for Partnership Withholding Tax Under Section 1446 Form 8805, Statement of Withholding under Section 1446 Form 8813, Partnership Withholding Tax Payment Form 8833, Treaty-Based Return Position Disclosure Form 8854, Initial and Annual Expatriation Information Statement Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Possession Dual Status -- Form 1040 and Form 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 Alien Exception: Primary taxpayer is an NRA with no Social Security Number (SSN); however, secondary taxpayer has an SSN and W-2 income. International Tax Treaty -- taxpayer indicating exemption or exclusion of tax and/or income due to an International Tax Treaty. Note: An American Indian treaty return is not considered an international return. If no international condition exists, consider it a domestic return. Treaty Trader Fulbright Grantee Notation of "Streamlined" on the return Form 14653 (Streamlined Foreign Offshore) Form 14654 (Streamlined Domestic Offshore) Other Streamlined certification IRC 871, 893, 911, 913, 931, 932, 933, 934 or 935 of the Internal Revenue Code (IRC) or Section 6114, is notated anywhere on the return. Caution: If none of the International conditions listed above are present, consider it a domestic return and continue processing. 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 1, Form 1040), FEC noted on line 1, 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. Immediately forward international returns -- in their entirety -- to AUSPC at the following address: Internal Revenue Service Mail Stop 6063 Austin Submission Processing Campus P.O. Box 934 Austin, TX 78767 For Private Delivery Service (PDS) Mailing: Internal Revenue Service Mail Stop 6063 Austin Submission Processing Campus 3651 S IH 35 Austin, TX 78741 If the return is unnumbered, take the following actions: Stop editing. Route the entire return to AUSPC. Exception: AUSPC only: Route to Receipt & Control for rebatching. If the return is numbered, take the following actions: Leave the return in the batch and edit Action Code "651" . (See Figure 3.11.3-6.) Exception: AUSPC only: Edit Action Code "610" . Stop editing. Figure 3.11.3-6 Identifying an International Return: Form 2555 is AttachedShown is a completed Form 1040 with DLN in the upper right corner.Caption on Form 1040 reads: Daniel Keelback.Your Social Security Number: 000-00-5152.Line 8, Schedule 1, Other Income. The taxpayer wrote Form 2555 on the dotted portion of line 8. Dollar amount <107,600>.Line 22, Combine the amounts in the far right column. If you don’t have any adjustments to income, enter here and include on Form 1040, Line 6. Otherwise, go to line 23. Dollar amount <107,600>Tax examiner edited 651 in the bottom center margin of page 1, Form 1040.Shown is also a completed Form 2555 showing the name Daniel Keelback and Social Security Number 000-00-5152.Text box over portion of figure reads: Edit Action Code 651 on Numbered International Returns. Please click here for the text description of the image. 3.11.3.6.2.14 (12-11-2020) Joint Committee Return (Reserved) 3.11.3.6.2.15 (12-11-2020) Misblocked Return All documents in a block of work must be the same type of return. A misblocked return is one found in a block of work other than the one in which it belongs. Example: Current Year Form 1040 in a Prior Year Form 1040 batch or an ITIN return in a batch of regular work. 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. Numbered returns must not be removed from the block. Instead, take the following actions for all numbered returns: If Then Form 1040 is found in a Form 1040A or Form 1040EZ block, Edit Action Code "610" . Form 1040A or Form 1040EZ is found in a Form 1040 block, Convert entries to Form 1040 format and continue editing. Form 1040A is found in a Form 1040EZ block, or vice versa, Edit Action Code "610" . If a prior year return is found in a current year block, Process the return using the prior year instructions in IRM 3.11.3.70. Form not in the 1040 series is found in a Form 1040 block, Refer the return to your work leader. Note: When editing either Action Code "610" , attach Form 4227 with an explanation of the action needed. 3.11.3.6.2.16 (12-11-2020) Misfiled Return 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. 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. Send a misfiled return back to the taxpayer with box 21 checked on Form 3531. 3.11.3.6.2.17 (12-11-2020) Reinput Return Return the block to Receipt and Control when Form 3893, Re-Entry Document Control, is not attached to a block of reinput returns. Take the following actions when processing reinput returns: Delete any unnecessary Action Codes. Delete any incorrect codes and edit marks. "X" any purple or blue corrections and re-edit them in red when the marks were made to correct erroneous Code & Edit marks. Do not delete the original TE number or re-stamp the document with your TE number. Follow the special editing instructions under "Remarks" on the Form 3893 (See Figure 3.11.3-7.) Move the Form 3893 to the back of the document, except for the first return, on all blocks with duplicate DLNs. Reminder: Edit a newly issued SSN/ITIN on all attached Form or Schedules when one is required. Note: Some re-entry returns may be rejected e-file returns coming from Accounts Management. These returns are identified by the presence of Mod e-File printouts (TRPRT- valid for prior year only) in lieu of the actual return. The printout will have "TRPRT PRINT DO NOT PROCESS" or "Efile Graphic Print" present. Do not correspond for missing signatures on these types of returns. Figure 3.11.3-7 Editing a Reinput ReturnShown is the top of a completed Form 1040. Tax Examiner Number 924 is present in the upper left corner. The DLN is present in the upper right corner.SSN 000-00-9897 has been circled and SSN 000-00-9899 has been edited by the tax examiner to the left of the deleted SSN.Shown also is Form 3893. File type checked is IMF.Block control number is present.DLN is present. Box 11 for re-entry source code is R for Reprocessable.Box 12 shows the DLN year digit as 6.Box 14 Remarks section contains the following verbiage: Reinput to correct SSN 000-00-9899.Box 15 shows Non-Remittance.Box 16 shows serial number as 05.Preparing employee information is present in box 17.Box 19 shows EIN or SSN corrected.Caption at bottom of figure reads as follows: Edit a reinput return according to instructions specified in the Form 3893 remarks box. Please click here for the text description of the image. 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. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: Also see the received date instructions in IRM 3.11.3.8.2 for more information on received date editing. 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. If Box 15 on Form 3893 directs you to process the return as a non-remit: Delete all green or blue marks underlining money amounts. Delete all green or blue written money amounts. 3.11.3.6.2.18 (12-11-2020) Returns Secured by Collection 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. Do not research for TC150 on Secured Returns Do not correspond or research for Forms W-2 on secured returns. Note: This includes support for EIC when wages are present or excess Social Security Tax (SST) is present. Do not correspond for missing or photocopied signature if Process as Original is present on the return. 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. Refer to the Examination case information in IRM 3.11.3.6.1.5 for instructions on returns secured by Examination. 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. 3.11.3.6.2.19 (12-11-2020) Short Period Return Taxpayers can file a return for fewer than 12 months only under one of the following conditions: An application or authority to file a short period return has been approved by the IRS (Form 1128). The return is filed under Treas. Reg. Section 1.443-1 The return is filed under Section 1398 (Bankruptcy) Election or Second Short Year after Section 1398 Election. 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.) The return is the final return for the taxpayer. Correspond for an explanation of the taxpayer's authority to file a short period return when none of the conditions in (1) above apply. Complete Form 3531/6001, using fill-in "4" , per Exhibit 3.11.3-17. Edit Action Code "211" when using Form 6001. Short Period returns require the following additional editing: Edit CCC "Y" and an Action Trail. Edit the ending date of the tax period, using "YYMM" format. Edit the received date when one is not already present. 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: A fraction of a quarter counts as a full quarter. The quarters begin in January, April, July, and October. Edit the SE Quarters Covered Code in the margin to the right of line 4 in the section used Section A or Section B of Schedule SE. Code the SE quarters covered as follows: Code "1" for one quarter. Code "2" for two quarters. Code "3" for three quarters. Note: Do not code for four quarters. 3.11.3.6.2.20 (12-11-2020) Substitute for Return (SFR) An SFR return is prepared by Examination, Collection, or the Automated SFR (ASFR) function. 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) Edit RPC "L" and CCC "B" when there are no significant T-line entries on lines 1 through 38. Take the following actions when an SFR return has the words "Possessor of Certain Cash" written on it: Edit the tax period if other than 2012. Process the return with a temporary TIN and route the return to Entity using Form 4227 for the assignment of the TIN. Edit "Possessor of Certain Cash" as the AIL. Edit an SFR return that has either "IRP" or "RTF" written on it as follows: Edit the tax period if other than 2012. Edit today's date as the received date. Edit CCC "3" and CCC "B" . Do not refer SFR returns without significant entries for statute clearing. Instead, edit RPC "L" , CCC "B" and RPC "K" . 3.11.3.6.2.20.1 (12-11-2020) Automated Substitute for Return (ASFR) 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 FSPC, 5045 E. Butler, Stop 81304, Fresno, CA 93727-5136 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. Do not correspond. Do not send the return back to the taxpayer. Reminder: Route to Statute for clearance prior to processing if required. 3.11.3.6.2.21 (12-11-2020) 52-53 Week Return This is the only type of return that may have a tax period ending prior to the last day of a month. 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, 2020, use the numeric designation for August (2008). If the ending date is October 28, 2020, use the numeric designation for October (2010). 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. 3.11.3.6.2.22 (01-01-2016) Blind Trust Returns Taxpayers who are presidential appointees are permitted to file their individual tax returns through a trustee of a blind trust. If there is any indication on the return or an attachment, a General Power of Attorney, or Form 2848 attached that indicates "Blind Trust" , see IRM 3.28.3.3. 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. 3.11.3.7 (01-01-2016) Tax Period These instructions for tax period editing include: General instructions Current calendar year returns Fiscal year returns Prior year returns Early filed returns 3.11.3.7.1 (12-11-2020) Tax Period, General Instructions The tax period is indicated at the top of the form above the name area and/or the TIN blocks. Consider all returns to be current calendar year (i.e., 2012) returns, unless otherwise indicated. Edit tax periods other than the current calendar year to the right of the preprinted tax year in "YYMM" format (e.g., "2103" ). (See Figure 3.11.3-8.) Current year returns are defined as a Form 1040 and the tax period can’t end earlier than 2012 (December 2020) or later than current year and month. Figure 3.11.3-8 Editing the Tax Period: Fiscal Year ReturnShown is the name line of a completed Form 1040.Tax Examiner Number 924 is present in the upper left corner.Taxpayer has written Tax Year: April 1, 2020 to March 31, 2021.Tax Examiner has edited 2103 in the top margin area just to the right of center. Please click here for the text description of the image. 3.11.3.7.2 (11-29-2019) Current Calendar Year Return 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. The work leader will: Convert to a current year by dummying a current year Form 1040 Include any Schedules 1 - 3 as necessary. 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. Number T-lines with entries when line numbers are missing. 3.11.3.7.3 (01-01-2016) Fiscal Year Return A fiscal year is twelve full months ending on the last day of any month other than December. Edit the tax period in YYMM format. Edit the received date when one is not already present. 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. 3.11.3.7.4 (12-11-2020) Prior Year Return A prior year tax return is a Form 1040 series return filed for a tax year prior to the current processing year. Refer to IRM 3.11.3.70 for prior year editing instructions. Refer to IRM 3.11.3.70.2 for the statute of limitations instructions on prior year returns. 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. The work leader will: Convert to a prior year Form 1040. Refer to the line-by-line instructions for prior year editing in IRM 3.11.3.70 for more information. 3.11.3.7.5 (11-17-2017) Early Filed Return 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" . 3.11.3.8 (12-11-2020) Received Dates The received date is the date that a return was received by the IRS. 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 3.11.3.8.1 (12-11-2020) Received Dates, General Instructions A received date is always required when the return is: Amended ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Fiscal year, prior year, or short year Early-filed for a decedent (filed before the close of the current year) Processed on June 4, 2021, or later, or the Julian date in the DLN is 155 or later Note: If return is being processed between ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ without a received date see IRM 3.11.3.8.2. Do not edit a received date if return is determined to be timely. Exception: See IRM 3.11.3.8.5(3). Edit the received date on the front of the return in the following locations: Form 1040 in the empty space to the right of "Dependents (see instructions)" TY17 and prior, Form 1040A to the right of line 6d TY17 and prior, Form 1040EZ to the left of line 6 Edit the received date in "MMDDYY" format when it is required and not already present. MMDDYY format is Month Month Day Day Year Year. For example, April 23, 2021, when edited in MMDDYY format is "042321" . Perfect the received date when it is required and not legible or is incomplete. When perfecting, edit in the MMDDYY format. 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. Circle the received date when it is present on a return that does not need one. (See Figure 3.11.3-9.) Circle a received date that has been X-ed. Circle all but the earliest valid received dates (including Statute or other valid IRS organization's received dates) when there are multiple received dates present and a received date is required. (See IRM 3.11.3.8.2.1(2).) Taxpayer Advocate Service (TAS) received dates are not valid received dates. If multiple received dates are identical and in the 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). If a return has been faxed to another area of the service and then sent to Code & Edit for processing, do not edit the Enterprise Electronic Fax (EEFax) date as the IRS Received Date. Edit the received date following normal procedures. Caution: The EEFax Date cannot legally be used as the IRS Received Date. Figure 3.11.3-9 Deleting an Unnecessary Received DateThe bottom portion of Form 1040 is shown with a received date of April 6, 2021 stamped in the center bottom portion of the return. The tax examiner has circled the received date. Please click here for the text description of the image. 3.11.3.8.2 (12-11-2020) Determining the Received Dates Determine the received date in the following priority when it is required and there is no valid date stamp or handwritten received date: Latest postmark on the envelope or latest date from a private delivery service mark. (See Figure 3.11.3-10) 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. Service Center Automated Mail Processing System (SCAMPS) digital dates. Latest date by the taxpayer's signature(s). (See Figure 3.11.3-10) 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. Julian date minus 10 days in the DLN. Today's date minus 10 days. Exception: See the instructions in IRM 3.11.3.6.2.17 when determining the received date for a reinput return. 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). 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: 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 3.11.3-11.) 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 041521. 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. 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. Reminder: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Figure 3.11.3-10 Editing a Received DateThis figure contains two (2) separate examples:Example 10a is entitled From the Postmark Date. It shows the top portion of an incoming envelope and a folded Form 1040 showing a portion of the caption area. a) The incoming envelope showing the return address as: Don Orange, 1817 E. Prune Avenue, Houston, TX 77013.b) Two postmark dates are present on the envelope -- April 17, 2021 and April 27, 2021.c) The top line of the caption on Form 1040 reads, Don Orange, SSN 000-00-1213.d) The tax examiner has edited the received date of 042721 to the right of Dependents (see instructions).Example 10b is entitled, From the Signature Line: No Postmark Date Availablea) Shown is a picture of a folded Form 1040 showing the first line of the caption area and the signature area.b) The top line of the caption on Form 1040 reads, Curt Falcon, SSN 000-00-9217.c) Signature line reads, Curt Falcon.d) The date next to the signature is 042921.e) The tax examiner has edited the received date of 042921 to the right of Dependents (see instructions). Please click here for the text description of the image. Figure 3.11.3-11 EDITING THE RECEIVED DATE ON SIGNATURE CORRESPONDENCE REPLIESShown is the Income, Adjusted Gross Income, and Refund portions of Form 1040.Edited received date to the right of Dependents (see instructions) is 051521.In the center of the Income portion of Form 1040 are two stamped AUSPC Received dates: 05042021 and 05252021.Both AUSPC Received dates are circled in red.In the bottom left margin of page 1, Form 1040, are the words, Returned for Signature, and two stamped dates: 041321 and 051521.$123,486.00 is entered on Line 9, Total Income amd ;ome 11. adjusted gross income.Line 37, shows a dollar amount of 1547.00.Text at the bottom of the graphic reads: Last received date is within 30 days of latest correspondence date on balance due return. Edit latest date sent back for signature as the received date. Please click here for the text description of the image. 3.11.3.8.2.1 (03-13-2020) Types of Received Dates 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, CIS, AM, for instance) should appear in the date stamp. Valid handwritten or typed received date Note: A handwritten or typed received date edited in the empty space to the right of Dependents (see instructions) on TY18 and later returns or on TY17 and prior returns in the line 6d area of Form 1040 or Form 1040A (line 6 of Form 1040EZ) by an IRS employee in Submission Processing or 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. 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. 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. 3.11.3.8.2.2 (01-01-2016) Post Office Marks Accept all valid post office marks whether United States Postal Service (USPS), foreign country postmarks, or USPS private meter marks. 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) Use the following chart to determine the correct editing when only a private meter postmark is present. If the document is Then ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 3.11.3.8.2.3 (11-17-2017) Private Delivery Service (PDS) Marks 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. 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. Accept all designated PDS marks. The only designated delivery services are listed below: 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 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 3.11.3-12.) DHL Express DHL Express DHL Express Worldwide DHL Express Envelope DHL Import Express DHL Import Express Worldwide 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 3.11.3-12 Identifying Elements on a FEDEX LabelShown is a FedEx label. Arrow shows the FEDEX Ship Date is the Postmark Date. This date is March 10, 2021 and is in the upper right corner and below the CAD Number. Text says the type of label is often blank, but if the statement, Powership 3 appears in this area of the label, tax examiner is instructed to not use the label to determine the received date. Please click here for the text description of the image. 3.11.3.8.3 (12-11-2020) Timely Filed Returns For 2021, a current-year return is a return filed for tax year 2020. A current calendar-year return (2012) is timely filed when it is mailed on or before the due date of April 15, 2021. Any return-other than a current calendar-year timely-filed return-always requires a received date. Generally, a current calendar-year (2012) return received on or before April 15, 2021, does not require a received date. For current calendar-year (2012) other than full-paid return, received on or before April 15, 2021: If the document is Then Unnumbered and being processed before June 4, 2021, Circle the received date when present. Exception: NEVER circle a received date that has been edited in green ink. Numbered with a DLN Julian date of 154 or earlier, Circle the received date when present. Exception: NEVER circle a received date that has been edited in green ink. Unnumbered and being processed on June 4, 2021, or later, Edit "041521" as the received date if one is not present. Numbered with a DLN Julian date of 155 or later, Edit "041521" as the received date if one is not present. 3.11.3.8.4 (12-11-2020) "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" By law, a timely-mailed return is a timely-filed return. This applies to both USPS and designated PDS mail. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ For current calendar-year (2012), other than full paid return, received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡: If the received date is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Then ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Circle the received date. Exception: Never circle a received date that has been edited in green ink. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Circle the received date. Exception: Never circle a received date that has been edited in green ink. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Circle the received date. Edit a received date of "041521" . Exception: Never circle a received date that has been edited in green ink. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Circle the received date. Edit a received date of "041521" . Exception: Never circle a received date that has been edited in green ink. Exception: If penalties or interest are indicated by Examination or Collection and the return is part- or full-paid, then edit a received date of "041521" 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. 3.11.3.8.5 (12-11-2020) Late Filed Returns A return is delinquent when it is filed after the due date without an approved extension. ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ When the received date on a current calendar-year (2012) return ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" or later), examine the envelope and: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Exception: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Exception: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Exception: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 3.11.3.8.6 (12-11-2020) Extensions 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, 2021. Extension forms are not required to be attached to the return when filed. 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. 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). 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, 2021, edit the postmark date as the received date. Exception: Edit a timely received date on the return when the taxpayer explains the return is late due to the rejection of a timely-filed electronic return. Postmark date must be within 10 calendar days of notification from the Service that the electronic portion of the return has been rejected or cannot be accepted for processing. (Publication 1345). ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 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. 3.11.3.8.7 (01-01-2017) Reasonable Cause Taxpayers are liable for delinquency penalties and interest on the unpaid taxes on returns received after the due date. However, penalties for late filing, or late payment, may be excused when the taxpayer has a reasonable cause for the delay. See Exhibit 3.11.3-8 for examples of reasonable cause. Note: Reasonable cause does not excuse penalties for failure to make estimated (ES) tax payments properly unless the taxpayer retired after reaching age 62 or became disabled during the tax year or the prior tax year. (See Exhibit 3.11.3-8.) 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. 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: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ When the taxpayer's reasonable cause statement is not acceptable: Edit CCC "7" . 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. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 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" . 3.11.3.9 (01-01-2016) Taxpayer Identification 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 3.11.3.9.1 (01-01-2016) Caption, General Information 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. Caption information can be printed, typed, or handwritten directly on the return. (See Figure 3.11.3-13.) 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. 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 3.11.3-13 Identifying Caption ElementsShown in this figure are 2 examples of caption information.The top example shows:The first line reads as follows: John Q. and Mary T. Heron. There is a black circled number 1 to the left of this line.To the right of the first line is the primary TIN 000-00-6243. There is a black circled number 5 to the left of the TIN.The second line reads as follows: C/O David E Bass. There is a black circled number 2 to the left of this entry.To the right of the second line is the secondary TIN 000-00-5432. There is a black circled number 6 to the left of this entry.The third line reads as follows: 310 Fir Ave. There is a black circled number 3 to the left of this entry.The fourth line l reads as follows: Columbia, SC 29201. There is a black circled number 4 to the left of this entry.The fifth line is for the foreign country name (black circled number 7 to the left of this entry), foreign province/state/county (black circled number 8 to the left of this entry), foreign postal code (black circled number 9 to the left of this entry).The bottom example shows:The first line reads as follows: John Q. Heron. There is a black circled number 1 to the left of this entry.To the right of the first line is the primary TIN 000-00-6243. There is a black circled number 5 to the left of the TIN.The second line reads as follows: Mary T. Quail. There is a black circled number 1 to the left of this entry.To the right of the second name line is the secondary TIN 000-00-5432. There is a black circled number 6 to the left of this number.The third line contains two addresses. The first address reads as follows: P.O. Box 547. There is a black circled number 3 to the left of this entry. The second address reads as follows: 310 Fir Avenue. There is a black circled number 2 to the left of this entry.The fourth line reads as follows: Columbia, SC 29201. There is a black circled number 4 to the left of this entry.The fifth line is for the foreign country name (black circled number 7 to the left of this entry), foreign province/stat/county (black circled number 8 to the left of this entry), foreign postal code (black circled number 9 to the left of this entry).The remainder of Figure 19 provides the key for the black circled numbers as follows:Black circled number 1 is for the Name Line.Black circled number 2 is for the Additional Information Line.Black circled number 3 is for the Mailing Address Line.Black circled number 4 is for the City.Black circled number 5 is for the State.Black circled number 6 is for the Zip Code.Black circled number 7 is for the Primary Taxpayer Identification Number (PTIN).Black circled number 8 is for the Secondary Taxpayer Identification Number (STIN).Black circled number 9 is for the Foreign Country Name*Black circled number 10 is for the Foreign Province/State/County*Black circled number 10 is for the Foreign Postal Code** if present, may be an indication of an international return. Please click here for the text description of the image. 3.11.3.9.2 (12-11-2020) Caption Editing 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. 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 3.11.3-14.) Exception: See IRM 3.11.3.9.2.3 for instructions for perfecting a mailing address. Figure 3.11.3-14 Editing the Caption from an AttachmentShown is the top portion of a completed Form 1040.Shown is the taxpayer submitted note which reads: My correct address is 806 S. Hound St, Portland, ME 04101. The street address is incorrect on the home address line. Shown is 808 S. Hound Dr.The tax examiner has circled 808 and edited 806 to the left of the circled entry.The tax examiner has circled Dr and edited St to the right of the circled entry. Please click here for the text description of the image. 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. Take the following actions if any required caption information is missing and cannot be perfected, (see Figure 3.11.3-15): Edit (or underline, if present) the name control in the caption area. Exception: Do not underline the name control when the TIN only is missing from the caption. Exception: Do not underline name control when correspondence is necessary. Perfect caption information from envelope or through research. Edit the P-TIN (if not present) in the caption area. Figure 3.11.3-15 Editing the Caption: Address is MissingThis figure contains two (2) separate examples a and b.Example a shows the caption portion of a completed Form 1040Your First Name is Catherine and the Last Name is MercuryThere is no address present.TIN is present and reads 000-00-5635Also shown is the incoming envelope. Return address is present.The tax examiner has underlined the characters HUMM in the taxpayer's surname.Example b shows the caption portion of a Form 1040. Caption information completely blank.Also shown is a Form W-2. Form W-2 shows the taxpayer's SSN which the tax examiner has edited to the SSN field on Form 1040.Form W-2 also shows the taxpayer's name as Catherine Mercury and complete address. The tax examiner has edited the name control of HUMM to the name line on Form 1040. Please click here for the text description of the image. Do not re-edit green edit markings in the caption area unless the editing is incorrect. 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: Name control for caption. 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. Underline the Additional Information Line (AIL) (see IRM 3.11.3.9.2.2.2) when: Present on a return. The taxpayer indicates information which should be added to the additional information line. Edit and underline the correct information. 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. 3.11.3.9.2.1 (12-11-2020) Taxpayer Identification Number (TIN) 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. 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. There are different types of valid TINs: Individual Taxpayer Identification Number (ITIN)Format always begins with the digit "9" and follows the same format as a typical SSN. The valid ranges for the fourth and fifth digits are: - 50 through 65 - 70 through 88 - 90 through 92 - 94 through 99 - Example of an ITIN: 9XX-71-XXXX. Adoption Taxpayer Identification Number (ATIN)Format always begins with the digit "9" and follows the same format as a typical SSN. The fourth and fifth digits will be 93. Example of an ATIN: 9XX-93-XXXX. Internal Revenue Service Number (IRSN)Format always begin with the digit "9" and follows the same format as a typical SSN. The fourth and fifth digits signify the Internal Revenue Service Campus (IRSC) Code where the IRSN was originally assigned or the new expansion range assigned to that campus. Shown below are the numbers allocated to IMF campuses: IRSC 4th and 5th Digit Ranges for IRSNs Expansion Ranges Austin 18 06 Fresno 89 10 Kansas City 09 39 Note: Example of an IRSN assigned from Austin: 9XX-18-XXXX. 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 should be circled. Circling is only necessary if the TIN field is a T-Line. 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. Stop editing the return and take the following actions when Form W-7 or Form W-7(SP) is attached to the return, : 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. 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" . 3.11.3.9.2.1.1 (11-17-2017) Primary TIN (P-TIN) The P-TIN must be in the "Your Social Security Number" block. 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. If "ITIN Rejected" is present in the P-TIN field, route the return to Receipt and Control for rebatching. If the P-TIN is missing, illegible or incomplete, examine the return and its attachments and edit the P-TIN, if found. Circle an incomplete P-TIN. Note: If there is an indication the taxpayer used a TIN that is not her/his own, take no action, (e.g., the taxpayer shows an ITIN on the return and an SSN on attached Form W-2). Correspond for a missing P-TIN when corresponding for other missing return items. If using Form 3531, check box 2, or Form 6001, check box B. Exception: Do not correspond if the taxpayer indicates "Amish" , "Mennonite" , "none" , "SSN Applied For" , "NRA" , "SSA 205(c)" , or all nines or zeroes. 3.11.3.9.2.1.2 (01-01-2019) Secondary TIN (S-TIN) Circle an S-TIN if it is present and the FS is "1" , "4" , "5" or "7" . 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. Edit the S-TIN from the return or attachments if it is missing, illegible, or incomplete, and the FS is "2" , "3" , or "6" . For TY17 and prior returns, edit the S-TIN in the correct block if it is blank and the taxpayer entered a TIN on the line to the right of FS box 3. Note: If there is an indication the taxpayer used a TIN that is not her/his own, take no action, (e.g., the taxpayer shows an ITIN on the return and an SSN on attached Form W-2). Correspond for a missing S-TIN when corresponding for other missing return items, unless there is an indication of Amish or Mennonite, ITIN Rejected or Non-resident Alien (NRA). If using Form 3531, check box 2, or Form 6001, check box B. Edit CCC "J" when the S-TIN is missing, the filing status is 2, 3, or 6 and there is an indication of Amish or Mennonite or "Form 4029" is notated. 3.11.3.9.2.2 (01-01-2016) Name Line and Additional Information Line Each return processed must have a legible last name. Research following local procedures when the name is illegible and cannot be perfected. There are two lines available for taxpayer identification. 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. The additional information line (AIL) is used to further identify the taxpayer. For example, additional name, address, or representative information may be shown. 3.11.3.9.2.2.1 (01-01-2016) Name Line Refer to Document 7071, Name Control Job Aid for Individual Master File (IMF) Taxpayers. 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.) 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. 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. Circle the brackets and prior last name when a taxpayer places it in brackets and shows a new last name. (See Figure 3.11.3-16.) Figure 3.11.3-16 Editing Two Last Names When One is in ParenthesesShown is the caption portion of Form 1040.The name line shown reads Stella A. (Violet) Fisher.The tax examiner has circled the parenthetical portion of the name, Violet.The remaining portion of the address reads as follows: 1239 Morgan Court, Apartment 127, Burlington, VT 05401 Please click here for the text description of the image. The primary taxpayer's name will appear on the first line. The secondary taxpayer's name may appear on the first or second line. Do not separate the primary and secondary taxpayers' names onto different lines if they are both on the same line. 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 3.11.3-17.) Uses a middle initial and no first name,* Edit the name for the middle initial, if present. (See Figure 3.11.3-17.) Writes his/her last name first, Edit it to appear last. (See Figure 3.11.3-18.) Enters his/her last name twice and the FS is other than "2" , Circle either name and edit the last name to appear last, if necessary. Note: *Do not verify the name line with the signature area unless one of these two conditions apply. Figure 3.11.3-17 Editing First and Middle Names from the Signature AreaShown is the caption and signature areas of a complete Form 1040.Primary name provided by the taxpayer is L. K. Gray.Secondary name provided by the taxpayer is K. S. Gray.Primary signature shows Lionel K. Gray.Secondary signature shows K. Susan Gray.Tax examiner circled L.K. in the primary name line and edited Lionel K.Tax examiner added Susan to the K.S. for the secondary name per the signature area. Please click here for the text description of the image. Figure 3.11.3-18 Editing the Taxpayer's Last Name to Appear LastShown is the caption portion of a Form 1040.The name line for the single taxpayer reads Moon, Lois.The tax examiner edited an arrow from the name Moon to indicate it should appear after the name Lois. Please click here for the text description of the image. 3.11.3.9.2.2.2 (11-17-2017) Additional Information Line (AIL) The additional information line may be found anywhere in the caption area. Edit and underline the AIL in the following priority: 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) Name of a parent signing for their minor child. Underline the AIL (see Figure 3.11.3-19), when present in the caption area, in the following priority: 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) Name of a parent signing for their minor child. Name of a Power of Attorney (POA) (See Figure 3.11.3-20.) Name of a person not meeting the criteria listed in a, b, or c above (e.g., "in-care-of" information.) Also underline in care of (c/o) with a name as part of the AIL. Street address, if not used as the mailing address. Note: Never underline or edit a P.O. Box as an AIL. Location other than a street address (e.g., bank, company name, university, or building name) not used as the mailing address. (See Figure 3.11.3-21.) Note: If a university and a building name are present, underline both as the AIL. Delete any condition or notation not found in (3) above. Figure 3.11.3-19 EDITING THE ADDITIONAL INFORMATION LINE: MORE THAN ONE AVAILABLEShown is the caption area of Form 1040.First line reads Janet PineSecond name line reads Marten Univ and Carla Roan, GDN.Street address reads: P.O. Box 789.The city and state show as Reno, NV 89510.The tax examiner underlined Carla Roan, GDN as the Additional Information Line.The tax examiner circled Martin Univ. Please click here for the text description of the image. Figure 3.11.3-20 Editing the Additional Information Line: POA Name in CaptionThis figure contains two examples of editing the Additional Information Line. Both examples include text boxes that say Power of Attorney is attached. The top example shows the caption area and signature area of a completed Form 1040.Caption shows Stephanie L. Marigold as the first name line.Caption shows Peter J. Star POA as the second name line.Signature shows Peter J. Star, POATax examiner has underlined Peter J. Starl as the Additional Information Line, per the verbiage under the example, which states If a POA name is present in the caption, underline it as the AIL.The bottom example shows the caption area and signature area of a completed Form 1040.Caption shows Stephanie L. Marigold as the only name line present.Signature portion of Form 1040 shows the signature for Peter J. Starl POA.The verbiage under the example, If a POA name is present in the caption, underline it as the AIL. Please click here for the text description of the image. Figure 3.11.3-21 EDITING THE ADDITIONAL INFORMATION LINE: OTHER LOCATION NOT USED AS THE MAILING ADDRESSGraphic shows the caption portion of a completed Form 1040. Tax Examiner Number 924 is present in the upper left corner of the return.First name line reads Shelly ElmSecond name line reads Bunting College, Building K, Room 42Street address line reads 1433 Apple HighwayCity, state and ZIP code line reads Rochester, NY 14603.The line reading Bunting College, Building K, Room 42 has been underlined in red by the tax examiner as the Additional Information Line. Please click here for the text description of the image. 3.11.3.9.2.3 (12-11-2020) Mailing Address Edit military addresses to include organization, Postal Service Center, mobile unit designation, or name of ship. Underline or edit the name control when there is no street address (for example, 4116 Grant Ave) or P.O. Box present in the caption. (See Figure 3.11.3-15 and Figure 3.11.3-22.) 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. 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 3.11.3-22.) 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 3.11.3-23.) 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, perfect address from an attached envelope. If unable to perfect from an attached envelope, research for the address. 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 3.11.3-22 EDITING THE CAPTION: ADDRESS IS INCOMPLETEThe figure contains two (2) separate parts, a (Street Address is Missing) and b (Street Address is Incomplete).Part a shows the return address on an envelope and the partially completed caption part of a Form 1040.The taxpayer's name is Tommy P. Hawk on Form 1040.Street address line is blank.Dallas, TX 75260Return envelope address reads: Tommy P. Hawk, 1904 E. Arthur, Dallas, TX 75260.Tax Examiner has underlined Hawk on Form 1040 as the Name Control because of the missing street address.Part b shows the return address on an envelope and the partially completed caption part of a Form 1040.The taxpayer's name is Tommy P. Hawk on Form 1040.Street address reads: 1904 E. The tax examiner has edited Arthur in red per information from the envelope because the address was incomplete.Dallas, TX 75260Return envelope address reads: Tommy P. Hawk, 1904 E. Arthur, Dallas, TX 75260. Please click here for the text description of the image. Figure 3.11.3-23 EDITING THE ADDRESS FROM ATTACHMENTS: CITY/STATE IS MISSINGShown are the caption part of a completed Form 1040, and the address part of two Forms W-2. The taxpayer address provided on the first Form W-2 reads Harvey V. Star, 5516 Oak Avenue, San Antonio, TX 78284.The taxpayer address provided on the second Form W-2 reads Harvey V. Star, 1306 Crow Street, Fargo, North Dakota 58102.The first line of the caption on Form 1040 reads Harvey V. Star.The second line of the caption on Form 1040, for a secondary taxpayer, is blank.The third line of the caption on Form 1040 reads 1306 Crow St.The fourth line of the caption on Form 1040 has been edited in red by the tax examiner and reads Fargo, ND 58102. Please click here for the text description of the image. 3.11.3.9.2.3.1 (11-17-2017) Change of Address (Form 8822) Edit the taxpayer's new address from Form 8822, Change of Address, if it is attached to the return. (See Figure 3.11.3-24.) 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, Detach Form 8822. Route Form 8822 to Entity Control using Form 4227. Edit Action Trails on both the return and on Form 8822. Note: If Form 56 is attached, detach and route with Form 8822. Route loose Forms 8822 to Entity Control. Refer to the Attachment Guide in Exhibit 3.11.3-1 for more information. Figure 3.11.3-24 EDITING THE CAPTION: CHANGING THE ADDRESS TO MATCH THAT ON FORM 8822Shown is the caption part of a completed Form 1040. Also shown is Form 8822, entitled Change of Address. Form 8822, Change of Address, is completed as follows:Line 1 has been checked by the taxpayer. Line 1 is for Individual income tax returnsIndented instruction under line 1 reads, If your last return was a joint return and you are now establishing a residence separate from the spouse with whom you filed that return, check here. Check box is blank.Line 3a reads Your Name (first name, initial, and last name). The taxpayer has written in John H. Waxwing.Line 3b reads Your social security number. The taxpayer has written in 000-00-8560.Line 4a reads Spouse's name (first name, initial, and last name). The taxpayer has written in Mary J. Waxwing.Line 4b reads Spouse's social security number. The taxpayer has written in 000-00-2144.Line 5 reads Prior name(s). See instructions. The taxpayer has left this line blank.Line 6a reads Old address (number, street, city or town, state and ZIP code). The taxpayer has written in 912 Lincoln Ave, Los Angeles, CA 90052.Line 6b reads Spouse's old address (number, street, city or town, state and ZIP code). If a P.O. Box or foreign address, see instructions. The taxpayer has written (same).Line 7 reads New address (number, street, city or town, state and ZIP code). The taxpayer has written in 1630 Truman Ave, Atlanta, GA 30304.The address on Form 1040 shows the following:John H & Mary Elm, 912 Roan St., Los Angeles, CA 90052.The tax examiner has circled 912 Roan St., Los Angeles, CA 90052.The tax examiner has edited 1630 Nova Ave, Atlanta, GA 30304 to the right of the circled address. Please click here for the text description of the image. 3.11.3.9.2.3.2 (01-01-2016) Multiple Addresses Use the permanent address when more than one address is indicated and one is permanent and one is temporary. (See Figure 3.11.3-25.) Exception: When the taxpayer identifies him/herself as a victim of a natural disaster and requests that a refund be sent to a temporary address, edit Action Code "341" . Note: Refer temporary foreign addresses to your work leader for possible manual refund. Figure 3.11.3-25 EDITING MULTIPLE ADDRESSESThis figure contains two (2) parts, a and b. Both graphics show the caption part of completed Forms 1040. Part a is entitled Editing a New Permanent Address from an Attachment.Caption reads Wilson J. & Nora Eagle, 6358 Moon, Houston, TX 77013.Taxpayer has provided a note with their return that reads, Please make note - address change: 965 Willow Ave, Seattle, WA 98109.Tax examiner has circled 6358 Moon, Houston, TX 77013 and edited in red 965 Willow Ave, Seattle WA 98109 to the right of the circled address.Part b is entitled Deleting a Temporary AddressThe name line of the caption contains Thurman L. Hawk.The second name line contains a short note from the taxpayer that reads, Please send my refund to 9610 Newt Blvd, Tampa, FL 33602 March 5 through May 15The third line reads 2010 West Elk.The fourth line reads San Antonio, TX 78284.The tax examiner has circled in red the taxpayer note on the second name line deleting the temporary address request. Please click here for the text description of the image. 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 3.11.3-26.) 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 3.11.3-27.) 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 3.11.3-26 EDITING THE CAPTION: AN ADDITIONAL INFORMATION LINE, P.O. BOX, AND A STREET ADDRESS ARE PRESENTShown is the caption area of a completed Form 1040.First name line reads Heidi D. MapleSecond name line reads Frank L. Viper, Gdn which is underlined in red as the Additional Information LineThird line of the caption reads P.O. Box 891 and 302 W RubyFourth line of the caption reads Pittsburgh, PA 15219.The tax examiner has circled 302 W Rubyin red on the third line of the caption. Please click here for the text description of the image. Figure 3.11.3-27 EDITING THE CAPTION: A P.O. BOX AND STREET ADDRESS ARE PRESENT WITH THE SAME CITY/STATE/ZIP CODEShown is the caption area of a completed Form 1040.First name line reads Ben A. SealSecond name line reads Megan SilverThird line of the caption reads P.O. Box 702 and 148 N. CedarFourth line of the caption reads Chicago, IL 60607.The tax examiner has underlined 148 N. Cedar in red as the Additional Information Line. Please click here for the text description of the image. For addresses having a rural route or route number with a box number, and a street address: (See Figure 3.11.3-28.) 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 3.11.3-28 EDITING A RURAL ROUTE AND BOX NUMBER ADDRESSThis figure contains two (2) parts, a and b. Both examples show the caption part of a completed Form 1040. Part a is entitled, A Street Number is Present.Name line one reads Arnold BearName line two is blank.Line 3 of the caption reads Rural Route 2 Box 23 and 610 Navy LaneLine 4 of the caption reads Fargo, ND 58102.The tax examiner has underlined Rural Route 2 Box 23 in red on the third line of the caption as the Additional Information Line.Part b is entitled, A Street Number is NOT Present.Name line one reads Arnold BearName line two is blank.Line 3 of the caption reads Rural Route 2 Box 23 and Navy LaneLine 4 of the caption reads Fargo, ND 58102.The tax examiner has underlined Navy Lane in red on the third line of the caption as the Additional Information Line. Please click here for the text description of the image. 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 3.11.3-29.) 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 3.11.3-29 STREET ADDRESS CONTAINING A PRIVATE MAIL BOX (PMB)Shown is the caption part and a part of the filing status area of a completed Form 1040. First name line reads Jeanette K. Dove.Second name line is blank.Third line of the caption reads 124 Diamond Ave PMB 176.Fourth line of the caption reads Atlanta, GA 30363.Filing status box 1 is marked for Single.Text at bottom of graphic reads, Editing is not required for a PMB when it is part of the street address. Please click here for the text description of the image. 3.11.3.9.2.4 (12-11-2020) City The city must be present. If missing, search the return and other attachments. If the missing information is Then Found, Perfect the city/state line. Exception: Do not perfect city/state information if the street address is not present on the return. Not found, Underline or edit the name control. 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. 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. 3.11.3.9.2.5 (12-11-2020) State The state must be present. If missing or not in the correct location, 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. Use the standard abbreviations when editing the state. Refer to Exhibit 3.11.3-9 for a list of the standard state abbreviations. 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. 3.11.3.9.2.6 (12-11-2020) ZIP Code The ZIP code may be five or more digits. Take no action when there are more than five digits. Search return or attachments if the ZIP code is missing, incomplete or not in the correct location and take one of the following actions: Perfect the ZIP code if a complete ZIP code is found for exactly the same address (including apartment number, if present). (See Figure 3.11.3-30.) Perfect the ZIP code using the chart in Exhibit 3.11.3-9 when a complete ZIP code is not found. Figure 3.11.3-30 EDITING THE ZIP CODE FROM ATTACHMENTSShown is the caption part of a completed Form 1040. Also shown are two Forms W-2. The address part on the first Form W-2 reads, Gilbert Marten, 1212 Larch Way, San Antonio, TX 78284.The address part on the second Form W-2 reads: Gilbert Marten, 5204 S Mastiff Ave, Houston, TX 77010.The caption part on Form 1040 reads as follows:First name line reads Gilbert Waxwing.Second name line is blank.Third line of the caption reads 1212 Jefferson Way.Fourth line of the caption reads San Antonio, Texas. The tax examiner has edited the ZIP code 78284 in red to the right of San Antonio, Texas from the W-2 with the matching address. Please click here for the text description of the image. 3.11.3.9.2.6.1 (11-29-2019) APO/FPO/DPO Addresses Edit an APO, FPO, or DPO address so that "APO" , "FPO" , or "DPO" appears with the following (see Figure 3.11.3-31): The correct two-letter state code, and The corresponding unique five-digit ZIP code Figure 3.11.3-31 EDITING AN APO ADDRESSShown is the caption area of a completed Form 1040. Name line one reads Reginald T. Pear.Name line two is blank.Third line of the caption reads, Army Comm Station Unit 1000 Box 836. Army Comm Station has been underlined in redFourth line of the caption reads, APO San Francisco 96201. The tax examiner has edited AP in red in the state box. Please click here for the text description of the image. Circle a city name or a foreign city or country if present, and edit the appropriate state/ZIP code based on the table in paragraph (4) below. Edit the ZIP code from the table in paragraph (4) below that applies to the state code when the ZIP code is missing or incomplete. 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 Located 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 3.11.3.10 (12-11-2020) Decedent Return Indications of a deceased taxpayer may include any of the following: Date of death is present "Deceased" written on the top of the return "Deceased" , "Filing as surviving spouse" , or similar notation in the signature area Death certificate, Form 1310, or other documentation is attached "Estate of" is present "DEC" 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 3.11.3.10.1 (12-11-2020) Decedent Return, General Instructions 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 3.11.3-32 Figure 3.11.3-32 EDITING CAPTION INFORMATION FROM SIGNED FORM 1310Shown is the caption part of a completed Form 1040 and the top part of a completed Form 1310. The following information is shown on Form 1310:Name of decedent: Warren James RobinDate of Death: 12-13-20.Decedent's Social Security Number: 000-00-6900.Name of person claiming refund: Eloise BlueYour Social Security Number: 000-00-2468.Home address: 789 Stable Street.City, town or post office, state and ZIP code: Houston, TX 77013The following information is shown on Form 1040:First name line reads, Warren J. Robin. Tax examiner has edited DECD in red to the right of the taxpayer's surname.Second name line has been edited in red by the tax examiner to read Eloise Blue. This name has been underlined in red as the Additional Information Line.Third line of the caption reads 13642 Gila Blvd.Fourth line of the caption reads San Antonio, TX 78284.The tax examiner has circled the address in its entirety in red and edited 789 Stable Street, Houston, TX 77013 to the right of the circled address in red.Text below figure reads: If Form 1310 is the documentary evidence, it must be complete and signed. Please click here for the text description of the image. If corresponding for documentary evidence check the "Estate of" box on Form 6001. Do not edit the AIL when corresponding for documentary evidence. If an AIL is present, circle out the AIL before corresponding for the documentary evidence. 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. If the signature is missing on a decedent return, correspond using Form 3531, check box 25. Edit "Estate of" in the caption area. Missing documentary evidence is not treated as an unsigned return. Do not use Form 3531 to mail back a signed decedent return missing documentary evidence. Decedent returns require a date of death. Correspond when the date of death cannot be determined through research. For Form 3531, check box 23, 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. If a return is filed for a single deceased taxpayer or two deceased taxpayers on a joint return and the return covers a tax period after the one in which the taxpayer(s) died, refer the return to your work leader. Note: These procedures also apply with a notation of "Estate of" or "Trust" in the caption when an SSN is present. Work Leaders - follow the instructions below: Verify conversion to Form 1041 is necessary. Verify taxpayer is deceased. If a surviving spouse's signature is present on the return or if the taxpayer signed the return, do not transship to BMF SPC. For a numbered return, Insert a replacement page and edit the following information: • DLN in the upper-right margin. • AC 640 • Action Trail, "Return transshipped to BMF SPC for conversion to Form 1041" . 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 unit to renumber and process the return. Take the following actions when a request for a prompt assessment or audit (e.g., "Section 6501(d)" noted) is present: Detach the request. Route the request to Examination using Form 4227. Note: Remember to edit Action Trails on the return and the request. 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, Edit the FS as 2 (Married filing jointly) and the spouse's name to the caption. Correspond, if the spouse's name cannot be found. - If using Form 3531, check box 24. - If using Form 6001, use fill-in 28, per Exhibit 3.11.3-17. One name in the name line, FS box 5 (Qualifying widow(er) is marked, Correspond, if the spouse's name cannot be found. - If using Form 3531, check box 24. - If using Form 6001, use fill-in 28, per Exhibit 3.11.3-17. Two names in the name line, Edit the FS as "2" (Married filing jointly). (See Figure 3.11.3-33.) Figure 3.11.3-33 EDITING FS 2: TWO NAMES IN CAPTION AND SPOUSE DIED DURING TAX PERIODShown is the top half of page one, Form 1040. Also shown is the signature part of page 2, Form 1040. First name line reads Jack B Adderand DECD is edited in red after the primary name Jack B per the Form 1310.Second name line reads Diane AdderThird line of the caption reads, 1563 Orchard CtFourth line of the caption reads, San Francisco, CA 94121.Taxpayer has checked the box for single in the filing status area of the return.Tax examiner has circled the checked box for single and edited a checkmark in the checkbox for married filing jointly, since the primary taxpayer died during the tax year.The signature area of page 2, Form 1040, contains the signature for Diane Adder, signed on 02/06/21 and her occupation reads, attorney. Please click here for the text description of the image. 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. 3.11.3.10.2 (11-17-2017) Name Line on a Decedent Return Use these name line instructions in addition to the regular caption editing procedures in IRM 3.11.3.9.2. 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 3.11.3-34.) 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 3.11.3-34.) 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 3.11.3-34 ARROWING NOTATIONS OF DECEASEDShown is the caption part of a completed Form 1040. There is a taxpayer notation in the top margin that reads: Deceased - Rick Cedar 4-11-20.The first name line reads, Rick P Cedar. After Rick P, the tax examiner arrowed the deceased notation to appear before the taxpayer's last name.The second name line reads, Stephanie R CedarThe tax examiner has underlined Stephanie R Cedar in red as the Additional Information Line. Please click here for the text description of the image. 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 3.11.3-36.)* Note: * If the deceased taxpayer's last name is hyphenated, edit DECD after the second surname. On a joint return, when one taxpayer died prior to the tax period of the return, delete the following from the caption: The deceased taxpayer's name and TIN "DECD" if it is included in the caption If deleting the primary taxpayer from the caption, edit the secondary taxpayer as the new primary. (See Figure 3.11.3-37.) See IRM 3.11.3.12.2.2 (1) for possible filing status editing. Figure 3.11.3-35 This image has been removed because it contains Official Use Only Content.≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Please click here for the text description of the image. Figure 3.11.3-36 EDITING THE NAME AND ADDITIONAL INFORMATION LINES: DIFFERENT LAST NAMES ON A JOINT RETURNShown is the caption area and signature area of a completed Form 1040. First name line reads Anthony R. Spruce. The tax examiner has edited DECD in red after the name.Second name line reads Sherry L. Setter. The tax examiner has underlined this in red as the Additional Information Line.Filing status is Married filing jointly.Signature area reads Sherry L. Quail filing as surviving spouse. Anthony died January 8, 2021.The date of the signature is 1-30-21.Text box is present over the graphic that reads, No documentary evidence is attached.Line 35a, Amount you want refunded: Dollar amount 6234.The caption at the bottom of the graphic reads: Documentary evidence is not required on a joint return signed by the surviving spouse. Please click here for the text description of the image. Figure 3.11.3-37 EDITING A DECEDENT RETURN: PRIMARY TAXPAYER DIED PRIOR TO THE TAX PERIOD ON A JOINT RETURNShown is the caption area of a completed Form 1040. The first name line reads Kevin J. Collie. The tax examiner has circled Kevin J Collie in red.The second name line reads, Caitlin CollieThe primary social security number has been circled in red and the secondary social security number has been arrowed up in red to be the primary social security number. The filing status is married filing jointly. The taxpayer has notation reads, Kevin died 9-28-19. Please click here for the text description of the image. 3.11.3.10.3 (12-11-2020) Documentary Evidence on a Decedent Return Accept any court papers naming the claimant as a court-appointed or court-certified personal representative for the estate of the deceased taxpayer. A will validated through the court is acceptable documentary evidence. Acceptable documentary evidence also includes a properly completed Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. (See IRM 3.11.3.10.3(7).) Note: The signature name and the documentary evidence name must be the same person. Otherwise, correspond. Reminder: A will that has not been validated through a court is not acceptable as proof of appointment. A power of attorney (POA) is not valid after the death of the taxpayer. Do not require documentary evidence for the authority to sign the return on a: Balance due return Zero/even balance return Joint (FS "2" ) return signed by the surviving spouse ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Credit elect return when the taxpayer's date of death is after the tax year (on a joint return this applies to either taxpayer). Return signed by a representative of a bank or fiduciary institution. Unless one of the exceptions in (2) above applies, require documentary evidence for all decedent returns that meet any of the following conditions: Uncomputed return Refund of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 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 3.11.3.70.3.1 for further information. Figure 3.11.3-38 This image has been removed because it contains Official Use Only Content.≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Please click here for the text description of the image. 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 of the 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). ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ Figure 3.11.3-39 This image has been removed because it contains Official Use Only Content.≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Please click here for the text description of the image. 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 27. Accept Form 1310 as documentary evidence when all the following are present: An original signature. Correspond if missing or invalid. See IRM 3.11.3.14.5 for signature requirements. 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 3.11.3-40.) Part II, question 3 must be answered "Yes" unless a court certificate is attached. (See Figure 3.11.3-41.) 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 3.11.3-40 CORRESPONDING ON A REFUND DECEDENT RETURN: OTHER CLAIMANT CANNOT BE ACCEPTEDShown are parts of a completed Form 1040, a completed Form 1310 entitled, Statement of Person Claiming Refund Due a Deceased Taxpayer, and a State of Ohio Certificate of Death. Form 1040 caption area reads as follows:First name line reads Paul R. GreenSecond name line reads c/o Raymond GreenThird line reads 313 Turtle DriveFourth line reads Wilmington, DE 19850Social Security Number for Paul R. Green reads 000-00-0034Form 1040, page 2 shows a refund of 195.00 on line 35a.Signature line reads Raymond Green and is dated February 2, 2021.State of Ohio Certificate of Death is for Paul Ryan Green and shows a date of death of May 17, 2020.Form 1310 Part II boxes are checked. Line 1 reads, Did the decedent leave a will? This box for this line has been checked No.Form 1310, Part II, Line 2a reads, Has a court appointed a personal representative for the estate of the decedent? This box has been checked Yes, therefore a court certificate should have been submitted and not a Certificate of Death as the required documentary evidence. An arrow is pointing towards this Yes entry.Form 1310 has been signed by Raymond Green as the person claiming the refund. The signature is dated February 2, 2021.Text at the bottom of the figure reads, A mark in the Yes box on line 2a, Form 1310, indicates a personal representative must file the return. The correct Additional Information Line cannot be determined until documentary evidence requirements are met. Correspondence must be initiated. Please click here for the text description of the image. Figure 3.11.3-41 IDENTIFYING A CORRECTLY COMPLETED FORM 1310 FOR OTHER CLAIMANTShown is a completed Form 1310. Shown are parts 1, 2, and 3 of a completed Form 1310, Statement of Person claiming refund Due a Deceased Taxpayer.There is a text box present on the right side of the graphic that reads, Edit Form 1310 address to Form 1040 caption.The tax year the decedent was due a refund is shown as calendar year 2020.The name of decedent is Laverne M. Warbler.The date of death is shown as August 30, 2020.The decedents social security number is 000-00-8921.The name of the person claiming the refund is Tim C. Brown.The social security number of the person claiming the refund is 000-00-6533. The home address of the person claiming the refund is shown as 1253 Viper Street.The city, state and ZIP code are shown as Riverside, California 92502.Part I instructs to check the box that applies to you.Box A reads Surviving spouse requesting reissuance of a refund check. This box is not checked.Box B reads Court-appointed or certified personal representative. This box is not checked.Box C reads Person, other than A or B, claiming refund for the decedents estate. Also, complete Part II. This box is checked.Part II instructs Complete this part only if you checked the box on line C above.Line 1 asks the question, Did the decedent leave a will? This line is marked Yes.Line 2a asks the question, Has a court appointed a personal representative for the estate of the decedent? This line is marked No.Line 2b asks the question, If you answered No to 2a, will one be appointed? This line is marked No.Note under line 2b reads, If you answered Yes to 2a or 2b, the personal representative must file for the refund.Line 3 reads, As the person claiming the refund for the decedents estate, will you pay out the refund according to the laws of the state where the decedent was a legal resident? This line is marked Yes.There are arrows drawing the tax examiner's attention to all entries present in Part II.Part III title reads, Signature and verification. All filers must complete this part.The jurat in Part III reads, I request a refund of taxes overpaid by or on behalf of the decedent. Under penalties of perjury, I declare that I have examined this claim, and to the best of my knowledge and belief, it is true, correct, and complete.Signature present reads Tim C. Brown and is dated February 10, 2021.Caption present under the graphic reads, A complete Form 1310 must include a mark in the No box on lines 2a and 2b, a mark in the Yes box on line 3, and a signature in Part III. Please click here for the text description of the image. 3.11.3.10.4 (01-01-2017) Additional Information Line on a Decedent Return An AIL is required on all refund and uncomputed returns. On all other returns, edit the AIL if available. (See Figure 3.11.3-42.) 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 26 and for Form 6001, fill in #3, per IRM Exhibit 3.11.3-17. Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 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. Edit the title of the representative from these sources in the following priority: Court certificate Form 1310 Signature area of the return Note: Edit only the first representative's name and title on the AIL when more than one is present. Use the following abbreviations for these titles (See Figure 3.11.3-42): 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. Delete personal relationship suffixes (e.g., "surviving spouse" , "mother" , "father" , "daughter" , "son" , etc.) from the AIL. Figure 3.11.3-42 EDITING AN AIL ON A REFUND DECEDENT RETURN: LEGAL REPRESENTATIVEShown is the caption part and the bottom of page 2, Form 1040. Also shown is a document entitled Letters of Testamentary. Statement has been notated by the preparer of the tax return in the top margin of Form 1040 that reads, deceased 01-02- 2020. DECD is edited in red after the taxpayer's last name of White.First name line reads William J WhiteThe Legal Representative's name (Herbert D. Badger EXEC) has been edited and underlined in red to the second name line.Street address reads 2220 W. BoaCity, state, ZIP code line reads Anaheim, CA 92803.Form 1040, line 76a shows a refund of $1300.Letters of Testamentary reads: Herbert D. Badger was duly granted by said Court Letters Testamentary of the Estate of William Joe White, deceased, and that he qualified as independent executor of said estate on the 13th day of January A.D. 2020, as the law requires, and that said appointment is still in full force and effect.Caption present at the bottom of the graphic reads: Edit the name of the court-appointed representative as the additional information line. Please click here for the text description of the image. 3.11.3.10.5 (01-01-2016) Computer Condition Codes for Decedent Returns Edit one of the following CCCs on all returns where the taxpayer(s) died during the tax period of the return: Edit CCC "F" if a single taxpayer, or only the primary taxpayer on a joint return, is deceased. (See Figure 3.11.3-43.) Edit CCC "9" if only the secondary taxpayer died during the tax period. (See Figure 3.11.3-43.) Edit CCC "A" if both taxpayers died during the tax period. (See Figure 3.11.3-43.) Note: Do not edit CCC "F" , "9" or "A" when the taxpayer died after the end of the tax period. (See Figure 3.11.3-44.) Edit one of the following CCCs on a refund or uncomputed return: 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 3.11.3-44) 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 3.11.3-44.) Note: Do not edit CCC "L" or CCC "W" if corresponding. Figure 3.11.3-43 EDITING CCC F, 9, OR A: TAXPAYER DIED DURING THE TAX YEAR.Shown are three graphics reflecting the caption area of three different completed Forms 1040. In the first graphic, there is a notation in the top margin that reads, Jack died October 21, 2020. The first name line reads Jack R Paint.The tax examiner has edited DECD after Jack R. The second name line reads, Marilyn Paint which is also underlined in red as the Additional Information Line.The filing status is married filing jointly.The tax examiner has edited CCC Fin red to the right of Your spouse as a Dependent area.The caption present under the graphic reads, Edit CCC F when only the primary taxpayer died during the tax year.In the second graphic, there is a notation in the top margin that reads, Joseph died March 3, 2020.The first name line reads Rita L Rabbit.The tax examiner has underlined Rita L Rabbit in red as the Additional Information Line.The second name line reads Joseph F RabbitThe tax examiner has edited DECD after Joseph F.The filing status is married filing jointly.The tax examiner has edited CCC 9 in red to the right of Your spouse as a Dependent area.The caption present under the graphic reads, Edit CCC 9 when only the secondary taxpayer died during the tax year.The third graphic shows a note from the preparer of the tax return at the top of Form 1040 that reads, Clinton died on Feb 13, 2020 and Karen died on Sept 18, 2020.First name line reads Clinton R Fisher. The tax examiner has edited DECD in red after Clinton R.Second name line reads Karen C Fisher. The tax examiner has edited DECD in red after Karen C.The street address reads 513 Diamond Boulevard. The tax examiner has edited and underlined in red Clint Fisher Jr. EXEC as the AIL to the right of the street address.There is a text box present on this figure that reads, Edit AIL from signature.The filing status is married filing jointly.CCC A is edited in red to the right of Your spouse as a Dependent area.The caption present under the graphic reads, Edit CCC A when both taxpayers died during the tax year. Please click here for the text description of the image. Figure 3.11.3-44 EDITING CCC W AND CCC L ON A REFUND RETURNShown in both examples a and b, below, are the caption, refund and signature areas of Forms 1040. Graphic a is entitled, CCC W: The surviving spouse is the payee.Taxpayer notation is present in the top margin of Form 1040 that reads: Calvin deceased 3-2-21. Tax examiner has arrowed this note down to the correct taxpayer (Calvin G.) in the caption.Primary taxpayer is shown as Holly R. Gypsum. Tax examiner has underlined this name in red as the Additional information Line.Filing status is married filing joint.Refund is present for $425.CCC W (indicating the surviving spouse is claiming the refund) is edited in red to the right of Your spouse as a Dependent area.Signature present reads Holly Gypsum and is dated 5/3/18.Caption present at the bottom of the graphic reads, Edit CCC 9 only if the date of death is within the tax period of the return.Graphic b is entitled, CCC L: Payees are the surviving spouse and a legal representative.First name line reads: John H Waxwing.Second name line is Mary J Waxwing.The tax examiner has edited DECD in red after John H and underlined Mary J Waxwing in red as the Additional Information Line.An additional AIL is edited in red to read Donald Thrush EXEC.Filing status is married filing joint.First signature present reads Mary J Waxwing, dated 4/06/18. Note in the occupation area reads: John died 8/5/16, surviving spouse.Second signature present reads Donald Thrush ExecCCC F (Primary taxpayer died during the tax year) and CCC L (indicating the surviving spouse and a legal rep. are claiming the refund) are edited in the center of the filing status area.Caption present at the bottom of the graphic reads, Documentary evidence is not required on a joint return signed by the surviving spouse. Please click here for the text description of the image. 3.11.3.10.6 (12-11-2020) Short Period Decedent Return If a single taxpayer or two taxpayers on a joint return died after the currently processed calendar year (2020), a short period return may be filed. In addition to regular editing, edit the following (see Figure 3.11.3-45): 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. CCC "Y" and an Action Trail CCC "A" for a joint return or CCC "F" for a single taxpayer Received date or today's date if no date stamp is present 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. 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: If the return is unnumbered, correspond, informing the taxpayer that a return for the entire year must be filed. If the return is numbered, edit Action Code "480" and do not correspond. Figure 3.11.3-45 EDITING A SHORT PERIOD DECEDENT RETURNShown are parts of page 1 and page 2 of a completed Form 1040. Tax Examiner number 924 is stamped in the upper left corner of page 1, Form 1040.Date present in the top right margin reads 01/01/21-03/08/21.First taxpayer name line reads Robert R. Lime. The tax examiner has edited DECD in red after Lime.First taxpayer's Social Security Number is 000-00-4826.Cindy Husky has been edited as the Additional Information Line (AIL) in red on the second name line.Street address reads 5403 Lunar St.City, state, ZIP Code line reads Miami, FL 33152The filing status is single. Tax examiner has edited CCC Y, F and R to the right of the Standard Deduction area.The AUSPC campus received date is 07202021.The words, Short Period DECD have been edited by the tax examiner along the far left margin of page 1, Form 1040, between line 1 and the dependent area.The signature line reads, Cindy Husky for Robert Lime (died 3/8/21). Please click here for the text description of the image. 3.11.3.11 (01-01-2017) Fiduciary Relationships Fiduciary returns are those which are signed for the taxpayer by a representative, who is often court-appointed. 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.) 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. Delete the word "Incompetent" from the caption when it is present. 3.11.3.11.1 (11-17-2017) Documentary Evidence Requirements 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. Documentary evidence is required only if the taxpayer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The parent for a child that is not a minor. Any of the representatives listed in the table at IRM 3.11.3.11. 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 Correspond when documentary evidence is required but not attached. If using Form 3531, check box 1, or Form 6001, paragraph i/r. Note: Do not edit AIL or underline, circle out if already present in the caption, when corresponding for documentary evidence. 3.11.3.11.2 (01-01-2016) Minor Child 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 Edit "MINOR" as a suffix to the child's name in the caption if the return is for a minor child. (See Figure 3.11.3-46.) 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 3.11.3-46 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: Use information from the signature area. Use information from Form 8615. Correspond for documentary evidence if a relationship cannot be determined. Correspond for missing required documentary evidence. Documentary evidence requirements are: A minor child's return signed by their parent never requires documentary evidence. A minor child's return signed by their guardian or other fiduciary representative (as shown in IRM 3.11.3.11) requires documentary evidence ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ All other relationships always require documentary evidence. Figure 3.11.3-46 Editing a Return for a Minor TaxpayerShown are the address and signature parts of a completed Form 1040.First name line reads Maggie Jasper. Minor has been edited after Jasper.Second name line has been edited as Anna Jasper. This text is underlined as the AIL.Signature reads Maggie Jasper by Anna Jasper, parent of a minor child.Signature date reads 02/17/21.Caption at the bottom of the graphic reads as follows: Editing of the parent's name and the word Minor are required when a parent signs for his or her minor child. Please click here for the text description of the image. 3.11.3.11.3 (11-17-2017) Power of Attorney (POA) If a POA relationship is indicated, Form 2848, Power of Attorney and Declaration of Representative, or a general or durable Power of Attorney must be attached. Correspond when missing, unless there is a notation of either of the following: "POA on file" . A Centralized Authorization File (CAF) number is provided on the return or an attachment. See paragraph (2) below. Note: A Form 2848 authorizes the holder to represent the taxpayer before the Service. The power to sign a tax return is not a power generally authorized by the form; the power must be specified. A Form 8821, Tax Information Authorization, only allows the holder to receive the taxpayer's tax information. Research the POA when either of the notations in (1) above are present. Correspond, when research does not provide a valid (current) POA. If using Form 3531, check box 1, or Form 6001, paragraph i/r. Never edit a POA name as an additional information line in the caption, unless otherwise instructed. See IRM 3.11.3.9.2.2.2 for further information on editing additional information lines. 3.11.3.12 (01-01-2016) Filing Status (FS) The filing status (FS) is used to determine the taxpayer's standard deduction amount, eligibility for the earned income tax credit, and to compute his/her tax. The instructions in this manual subsection are for determining and editing the correct FS. 3.11.3.12.1 (12-11-2020) Filing Status, General Instructions Edit the FS by either checking the correct box or by editing the FS Code in the white space under the Filing status heading. TY17 and prior, Form 1040/1040A, edit the FS by either checking the correct box or by editing the FS Code to the left of the Filing Status 3 box. The meaning of the Filing Status Codes are: FS "1" - single taxpayer FS "2" - married taxpayers filing joint return FS "3" - married taxpayer filing a separate return (spouse dependent / exemption is not claimed) FS "4" - head of household FS "5" - qualifying widow(er) FS "6" - married taxpayer filing a separate return (spouse exemption is claimed) FS "7" - head of household (dependent is not claimed) Note: Name will be present in the filing status area. 3.11.3.12.2 (12-11-2020) Determining the Filing Status On an uncomputed return, when all FS boxes are blank or multiple boxes are marked: 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. 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. 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. 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 3.11.3-47.) 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 3.11.3-47.) A name or "see attached" is noted on line next to Qualifying widow(er) or Schedule EIC, with a qualifying child is attached, AND no dependents are edited in positions 1, 3, 4, or 5. Circle FS 1 and 4 boxes and edit FS "7" . None of the conditions listed above are present, Circle FS 4 box. Note: Refer to the FS "4" instructions (IRM 3.11.3.12.2.4) if a spouse is claimed on the Dependent line. Figure 3.11.3-47 EDITING MULTIPLE FS BOXES ON A COMPUTED RETURNShown is the top part of page 1, Form 1040 and the bottom part of page 2, Form 1040. First name line reads Lois M. Stable.Taxpayer marked both single and head of household filing statuses.Dependent information on first dependent line shows a son, Ronnie Finch, who qualifies for the child tax credit.Return is computed to a refund for $1200.Tax examiner has circled the taxpayer's entry for single filing status in red and left the head of household. Please click here for the text description of the image. 3.11.3.12.2.1 (12-11-2020) FS 1 (Single) Box Marked 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, Circle FS 1 box and check FS 2 box. Edit the spouse's name to the caption or correspond if missing. - If using Form 3531, check box "24" . - If using Form 6001, use fill-in "28" , per Exhibit 3.11.3-17. Note: Also see the decedent return editing information in IRM 3.11.3.10. None of the conditions above apply, Take no action. 3.11.3.12.2.2 (12-11-2020) FS 2 (Married Filing Jointly) Box Marked 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 2. Are two signatures and a spouse is claimed on the Dependent line, There is no S-TIN present, Edit spouse's name to the caption. 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 2018 or 2019, 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 Circle FS 2 box and check FS 5 box. Circle the deceased spouse's name and TIN in the caption. (See Figure 3.11.3-48.) Are no conditions above that apply, Take no action. Figure 3.11.3-48 CHANGING FS 2 TO FS 5Shown is the top part of a completed Form 1040. First name line reads Mary L. Topaz. Social Security Number for Mary reads 000-00-9658.Second name line reads Dave R. Topaz. Social Security Number for Dave reads 000-00-5367.Filing status area has been marked Filing Status 2, Married filing jointly.The taxpayer has noted in the filing status area, Mary died May 23, 2019.There are two children -- a daughter (Michelle 000-00-5863) and a son (Michael 000-00-8745) -- claimed on dependent line, Dependents. Both children qualify for the child tax credit.The tax examiner has circled Mary's name in red because a joint return cannot be filed after the death of the primary taxpayer.The tax examiner has circled Mary's SSN in red and arrowed Dave's SSN up to be the primary in red.The tax examiner has circled the Filing Status Married Filing Jointly designation in red and checked filing status Qualifying widow(er) with dependent children in red. Please click here for the text description of the image. 3.11.3.12.2.3 (12-11-2020) FS 3 (Married Filing Separately) Box Marked 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 Do not code the spouse as a dependent when listed on the Dependent line. (See Figure 3.11.3-49.) Is only one name in the caption, The spouse has income, Correspond for the correct FS. If using Form 3531, use fill-in "43" , per Exhibit 3.11.3-17. 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 3.11.3-49 CHANGING FS 3 TO FS 6: SPOUSE HAS NO INCOME AND IS CLAIMED ON DEPENDENT LINE Shown is a partially completed Form 1040 and Form W-2. Name line reads Janice M. MareStreet address reads 10296 Iridium CoveCity, state, ZIP Code line reads, Baltimore, MD 21233Taxpayer checked Filing Status 3, Married filing separately.In the dependent area of the form, the taxpayer listed her spouse, Edward G. Mare.Form 1040, line 7, Wages, sales, tips, etc. shows $27,652.29.Form W-2 is for Janice M Mare and shows $27,652.29 in box 1, Wages, tips and other compensation.The tax examiner has edited an X in red to the left of the spouse/dependent.The tax examiner has circled filing status 3 designation and edited a 6 under the Filing Status header in red to show the spouse has no income and the filing status should be 6, and edited the spouse’s SSN in the Spouse’s SSN line in the caption. Please click here for the text description of the image. 3.11.3.12.2.4 (12-11-2020) FS 4 (Head of Household) Box Marked 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 with a qualifying child attached, Circle FS 4 box and check FS 1 box. (See Figure 3.11.3-50.) A name or "see attached" is notated below filing status checkboxes or Schedule EIC with qualifying child is attached and No dependents are entered/edited in positions 1, 3, 4, or 5 Circle FS 4 box and edit FS "7" . (See Figure 3.11.3-51.) A spouse's date of death is within the tax period of the return or the subsequent tax period, Circle FS 4 box and check FS 2 box. Edit the spouse's name to the caption or correspond if missing. - If using Form 3531, check box 24. - If using Form 6001, use fill-in "28" , per Exhibit 3.11.3-17. Note: See the decedent return editing information in IRM 3.11.3.10. Figure 3.11.3-50 CHANGING FS 4 TO FS 1Shown is the top part of a completed Form 1040. Text box is present over the graphic that reads, Schedule EIC is not attached. Name line reads, John S. Caiman.Street address reads 2003 N. Keelback.City, state, ZIP Code line reads, Billings, MT 59101.In the Filing Status area, the taxpayer has marked box 4 for Head of Household.Tax examiner has circled the box 4 designation for Head of Household in red because the taxpayer does not show a qualifying person for this filing status.Tax examiner has checked box 1 for Single in red as the correct filing status. Please click here for the text description of the image. Figure 3.11.3-51 CHANGING FS 4 TO FS 7Shown is the Filing Status and Exemption area of a completed Form 1040. Taxpayer has checked box 4 for Head of Household (with qualifying person). Tax examiner has circled the box 4 designation for Head of Household in red.Tax examiner has edited a 7 under the Filing Status Header in red to indicate that the name is a qualifying child.A text box reads: Schedule EIC is attached with qualifying child. Please click here for the text description of the image. 3.11.3.12.2.5 (12-11-2020) FS 5 (Qualifying Widow(er) Box Marked Refer to the decedent editing instructions in IRM 3.11.3.10 if the spouse died during the tax period of the return. When the taxpayer marks FS 5 box only: If the And Then Spouse's date of death is not 2018 or 2019, 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 3.11.3-52.) Spouse's date of death is not 2018 or 2019, 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 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, Correspond, if the spouse’s name can’t be found. - If using Form 3531, check box 24. - If using Form 6001, use fill-in "28" , per Exhibit 3.11.3-17. Spouse's date of death is not present, Take no action. Figure 3.11.3-52 CHANGING FS 5 TO FS 4Shown is the filing status and exemption area of Form 1040. In the filing status area, the taxpayer has checked box 5 for Qualifying widow(er) with dependent child. Taxpayer has noted Spouse Died in 2016 to the right of the filing status 5 designation.In the Exemption area, the taxpayer has written the name Randy Finch on line for Dependents. Randy's SSN is present and reads 000-00-5678.Taxpayer checked the designation in column 4 to indicate the child qualifies for the Child Tax Credit.The far right side of the exemption area shows that 1 dependent is edited in position 1.Tax examiner has circled the filing status Qualifying Widow(er) box (the date of death is past the 2 years for qualifying widow status) in the filing status area in red.Tax examiner has checked filing status Head of household (HOH) box in the filing status area in red. Please click here for the text description of the image. 3.11.3.13 (12-11-2020) Dependents There are no exemptions on TY18 and later returns only dependents. There are two types of exemptions on prior year returns: Personal exemptions Dependency exemptions A taxpayer is allowed one personal exemption for him/herself (two on a joint return), as long as he/she cannot be claimed as a dependent by another taxpayer. Taxpayers are also allowed one dependency exemption for each person they can claim as a dependent. The exemption instructions in this subsection of the manual are for: Taxpayer claimed as a dependent by another person General instructions about exemption coding Coding each of the exemption positions 3.11.3.13.1 (01-02-2020) Dependent Coding Dependents are edited on Form 1040 in the margin directly to the right of the dependents area of the return. 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 - Child relationships overflow (See Figure 3.11.3-53.) Dependents will be coded based on the relationship listed in column (3). 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 3.11.3-54.) Edit dependents to position 5 when the relationship of the dependent is not listed. The number of dependents edited should equal the number of dependents listed by the taxpayer on the Form 1040 or attachments. (See Figure 3.11.3-55.) 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 3.11.3-53 DEPENDENT POSITIONSShown is the Dependent area of a blank Form 1040. All numbers appear in the far right area of the Dependent area and the right margin adjacent to the Dependent area. Caption under the graphic reads: (Numbers indicate positions that are edited by tax examiners.)A black number 1 is shown in the right margin that reads Child Relationships.A black number 2 is shown in the right margin that reads Will always be edited 0.A black number 3 is shown in the right margin that reads Parents/Grandparents.A black number 4 is shown in the right margin that reads Qualifying children.A black number 5 is shown in the right margin that reads Other dependents.A black number 6 is shown in the right margin that reads Overflow from position 1. Please click here for the text description of the image. Figure 3.11.3-54 EDITING LEADING ZEROSShown is the Dependent part of a completed Form 1040. Two dependents are listed on the dependent lines.First dependent shown is Jason Rose. SSN is 000-00-5679. Relationship is father.Second dependent shown is Daniel Brown. SSN is 000-00-3482. Relationship is uncle.In the far right margin adjacent to the Dependent area, the tax examiner has edited two leading zeros in dependent positions 1 and 2.In the far right margin adjacent to the Dependent area, the tax examiner has edited a 1 in dependent position 3.In the far right margin adjacent to the Dependent area, the tax examiner has edited a 0 in dependent position 4 and a 1 in position 5.Text at the bottom of the graphic reads, Edit dependents to dependent positions as follows:3 - Jason - parent.5 - Daniel - other dependent (uncle).Zeros are required only in empty positions before, not after, a position with an entry. Please click here for the text description of the image. Figure 3.11.3-55 EDITING DEPENDENT POSITIONSShown are three examples depicting the Exemptions area on a completed Form 1040. First example is as follows:The Dependent line area shows three dependents as follows:Luke White. SSN 000-00-8562. Relationship is son. A check mark is present to indicate Luke qualifies for the Child Tax Credit.Amy White. SSN 000-00-00179. Relationship is daughter. A check mark is present to indicate Amy qualifies for the Child Tax Credit.Andrew White. SSN is 000-00-4183. Relationship reads father.The Exemption coding area shows the following:Tax examiner has edited a 2 in dependent position 1 in red.Tax examiner has edited a 0 in dependent position 2 in red.Tax examiner has edited a 1 in dependent position 3 in red.Text at the bottom of the first graphic reads. Edit children to position 1 and parents to position 3.Second example is as follows:The Dependent Line area shows 2 dependents as follows:Billy Green. SSN 000-00-6321. Relationship is Nephew. A check mark is present to indicate if Billy qualifies for the Child Tax Credit.Deirdre Tan. SSN is 000-00-4523. Relationship is foster child. No check mark is present to indicate if Deirdre qualifies for the Child Tax Credit.Tax examiner has edited a red 0 in positions 1, 2, 3.Tax examiner has edited a 2 in dependent position 4.Text at the bottom of the graphic reads, Edit qualifying children to position 4.Third example is as follows:The Dependent Line area shows 4 dependents as follows:Edwin Amber. SSN 000-00-7523. Relationship is boyfriend. No check mark is present to indicate if Edwin qualifies for the Child Tax Credit.Brandy Amber. SSN is 000-00-3716. Relationship is daughter in law. No check mark is present to indicate if Brandy qualifies for the Child Tax Credit.Morgan Black. SSN 000-00-4593. Relationship is blank. No check mark is present to indicate if Morgan qualifies for the Child Tax Credit.Nathan Silver. SSN is 000-00-3087. Relationship is cousin. No check mark is present to indicate if Nathan qualifies for the Child Tax Credit.Tax examiner has edited a red 0 in positions 1, 2, 3, and 4.Tax examiner has edited a 4 in dependent position 5.Text at the bottom of the graphic reads, Edit dependents with a blank relationship and other dependents to position 5. Please click here for the text description of the image. 3.11.3.13.1.1 (12-11-2020) Determining Dependent Relationship 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" 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 must be attached. If attached, edit SPC "A" . See Figure 3.11.3-56. Note: Form 8332 or Form 2120 must show entries. If not attached or the form is blank, correspond with Form 3531, box 7, or Form 6001-A, box G. Note: If corresponding with Form 6001-A, "X" position 2. Exception: Do not correspond if rejected ITIN condition is present for all dependents in position 2. Figure 3.11.3-56 EDITING SPECIAL PROCESSING CODE AShown is the completed top part of Form 8332, Release/Revocation of Release of Claim by Custodial Parent, and the top part of a completed Form 1040. Form 8332 shows the name of the noncustodial parent claiming exemption to be Hellene Hawk.Noncustodial parent's social security number is 000-00-6532.Form 8332, Part I, Release of claim to exemption for current year, includes the statement that reads, I agree not to claim an exemption for Anna Finch. The remainder of this form is not visible in the graphic.Form 1040 shows the following information:First name line reads Hellene Hawk. SSN reads 000-00-6532Second name line is blank.Street address reads: 685 Lark Ave.City, state ZIP code reads: Santa Fe, NM 87501Filing status is single.Line 6c shows Anna Finch. Anna's SSN is 000-00-6956. Relationship is daughter.Special Processing Code A is edited in red to the right of the Presidential Election Campaign Fund (PECF) boxes.Text under the graphic reads: When Form 8332 is attached, edit Special Processing Code A in the right margin between the Secondary SSN and the PECF boxes. Please click here for the text description of the image. 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" The "qualifying child" relationship (position 4) includes notations of the following: "Foster child" , "foster son" , or "foster daughter" "Ward" Any child placed by an authorized agency "Brother" , "sister" , "brother-in-law" , "sister-in-law" , "step-brother" , "step-sister" , "half brother" or "half sister" "Nephew" or "niece" Include in "other" relationships (position 5) any dependent not identified in (1), (3) or (4) above. "Other" relationships include the following: "Uncle" or "aunt" "Son-in-law" or "daughter-in-law" "Friend" , "boyfriend" , or "girlfriend" All dependents who did not live in the US except for parent relationships 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. If more than nine dependents are identified for position 1, edit the excess in position 6. Note: Do not use Schedule EIC to determine Dependent positions. 3.11.3.13.2 (12-11-2020) Dependent's Name Control and TIN Up to four dependents' name controls and TINs can be transcribed. 3.11.3.13.2.1 (12-11-2020) Dependent's TIN Every dependent claimed must have a valid TIN. Search attachments, including Schedule EIC, Form 8965, and Form 2441, for any dependent TIN not listed or invalid on the Dependent lines. 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. 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 3.11.3-57.) Figure 3.11.3-57 EDITING DEPENDENTS' TINs FROM ATTACHMENTSThis figure shows the Dependent area of Form 1040 and lines 1 and 2 of Schedule EIC.Form 1040 has the following entries: column 1, first name, last name, first row -- John Green.column 2, Dependent's Social Security Number, first row -- 000-00-3287.column 3, Dependent's relationship to you, first row -- son.column 1, first name, last name, second row -- Lisa Green.column 2, Dependent's Social Security Number, second row -- 000-00-5474. The Social Security Number is edited in red from the information provided by the taxpayer on Schedule EIC.column 3, Dependent's relationship to you, second row -- blank.column 1, first name, last name, third row -- Paul Green.column 2, Dependent's Social Security Number, third row -- 000-00-6639. The Social Security Number is edited in red from the information provided by the taxpayer on Schedule EIC.column 3, Dependent's relationship to you, third row -- blank.Schedule EIC shows the following entries: Line 1, Child 1, Name -- Lisa Green.Line 2, Child 1, Child's SSN -- 000-00-5474.Line 1, Child 2, Name -- Paul Green.Line 2, Child 2, Child's SSN -- 000-00-6639. Please click here for the text description of the image. 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 dependents name. (See Figure 3.11.3-58.) Provides no TIN, at least four TINs are present for other dependents, "X" dependents position 1-6. (See Figure 3.11.3-58 and Figure 3.11.3-59.) Note: Also "X" the dependents 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 22 and for Form 6001, use box E. Correspond for missing TINs of all dependents when corresponding for other missing return items. For Form 3531, use box 3 and for Form 6001, use box F 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" . Figure 3.11.3-58 DELETING DEPENDENT'S NAME ON DEPENDENT LINE: MISSING TIN NOT FOUND ON RETURN OR ATTACHMENTS Shown is Dependent area of Form 1040. Dependents, column 1, first row - Paul Wolf.Dependent's Social Security Number, column 2, first row - 000-00-2501.Dependent's Relationship to You, column 3, first row - son.Dependents, column 1, third row - Kristen Shepherd. A red X is edited to the left of Kristen Screamer. Her TIN is missing and not found so her name is deleted from Dependent area. The name is X'd, but cousin is edited to position 6. There is a red 0 edited for parents, a red 0 for qualifying child and a red 1 for other dependents.Dependent's Social Security Number, column 2, third row - blank.Dependent's relationship to you, column 3, third row - cousin.Text under graphic reads: Correspond for missing TINs when corresponding for other missing items. Please click here for the text description of the image. Figure 3.11.3-59 MISSING TIN FOR DEPENDENT CANNOT BE PERFECTED AND AT LEAST FOUR TINS ARE PRESENT FOR OTHER DEPENDENTSShown is a portion of Form 1040 (Dependent Area) and a taxpayer provided attachment. Dependent Line 1: Rene Owl, SSN: 000-00-2501; relationship son, box checked to indicate son qualifies for Child Tax Credit.Dependent Line 2: Joanne Owl, SSN: 000-00-3521; relationship daughter, box checked to indicate daughter qualifies for Child Tax Credit.Dependent Line 3: Kevin Owl, SSN: 000-00-3207; relationship son, box checked to indicate son qualifies for Child Tax Credit.Dependent Line 4: Louisa Owl, SSN: 000-00-1212; relationship daughter, box checked to indicate daughter qualifies for Child Tax Credit.Taxpayer provided attachment reads: Additional dependents, Jeff Swan -- nephew The attachment did not give Jeff's TIN.Text at bottom of graphic reads: If you have already edited dependent positions, X your dependent entries. Please click here for the text description of the image. 3.11.3.13.2.1.1 (04-20-2018) Adoption TIN A taxpayer who does not know the TIN of the child he/she is adopting may still claim an exemption for the dependent by obtaining a temporary adoption taxpayer identification number (ATIN). ATINs are used for tax purposes only and are obtained by filing Form W-7A. ATINs are processed at the AUSPC only. ATINs appear in the following format: 9XX-93-XXXX. 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. 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. 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.) If the child is listed as a dependent on the return and the TIN is missing, edit the received date on Form W-7A in MMDDYY format and detach it from the return. Route the Form W-7A and all related documentation to AUSPC. Edit an action trail on the return and continue processing. Note: Documentation attached to the Form W-7A should be at least one of the following: • Placement agreement between the parent(s) and the agency. • Document signed by the hospital authorizing the release of a newborn. • Court Order ordering or approving the placement of a child for legal adoption. • Affidavit signed by the adoption attorney or government official who placed the child with the parent(s) for legal adoption. 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 05-14-2021. Edit this date on line 4 of Form 3471, Edit Sheet, if current date is after April 15, 2021. 3.11.3.13.2.2 (12-11-2020) Dependent's Name Control 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. Determine the missing name control(s) in the following priority: From Schedule EIC or other supporting attachments. (See Figure 3.11.3-60.) Caution: Form 8965 is not valid for determining Dependent’s Name Control. Note: If editing from attachments and the taxpayer indicates dependent children are eligible for the Child Tax Credit or Credit for Other Dependents, ensure the correlating checkboxes are marked on Dependent line, column (4). Note: Honor taxpayer’s ditto (“) marks when used to duplicate dependent last names. From the primary taxpayer's name control. (See Figure 3.11.3-61.) Figure 3.11.3-60 EDITING DEPENDENT INFORMATION FROM AN ATTACHMENTShown is a portion of Form 1040 Dependents area and a taxpayer provided attachment.The attachment lists 5 dependent names with SSNs, relationship, and CTC checks.Dependents, on the first row, first column, taxpayer noted, see attachment. That has been circled in read by the tax examiner.Text box is present over Form 1040 stating, edit T-line information from an attachment.On the dependent lines, the tax examiner edited the first 4 of the 5 dependents name controls, SSNs, and checked 2 CTC boxes from the information on the attachment.Tax examiner also edited the exemption positions from the attachment. Please click here for the text description of the image. Figure 3.11.3-61 EDITING DEPENDENT NAME CONTROLS: NO LAST NAME IS PRESENTShown is the top half of a Form 1040 through the Dependents area. Your first name line reads: Kevin D BrownThe second name line reads Megan A BrownTaxpayer's address is: 3489 Apricot St. Santa Fe, NM 87501.Your Social Security Number - 000-00-5879.Spouse's Social Security Number - 000-00-4154.Filing status area of Form 1040 shows box 2 marked, Married filing jointly.Dependents, column 1, first line, First name -- last name - John Brown. Brow is edited in red from the primary taxpayer's last name.Dependents, column 2, first line, dependents social security number - 000-00-6332.Dependents, column 3, first line, dependents relationship to you - son.Dependents, column 1, second line, first name -- last name - Bernadette Brown. Ditto marks are edited in red to repeat the first edited name control BrowDependents, column 2, second line, dependents social security number - 000-00-5859.Dependents, column 3, second line, dependents relationship to you - daughter.Dependents, column 1, third line, first name -- last name - Amanda Brown. Ditto marks are edited in red to repeat the first edited name control Brow.Dependents, column 2, third line, dependents social security number - 000-00-3214.Dependents, column 3, third line, dependents relationship to you - child.Dependents, column 4, first line, Check if child qualifies for child tax credit. The box is marked for this dependent.There is a text box present over a portion of the graphic that reads: No other dependent information on return or attachments. Please click here for the text description of the image. 3.11.3.14 (12-11-2020) Form 1040 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 1 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 All lines on Form 1040 are T-lines, except for the following: Line 10a Line 12 Line 14 Line 17 Line 18 Line 20 Line 22 Line 25a Line 25b Line 25c Line 31 Line 34 There are also nine T-Compute lines on Form 1040. These are: Line 9- Total Income Line 11 - Adjusted Gross Income Line 15 - Taxable Income 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. 3.11.3.14.1 (12-11-2020) Form 1040, General Editing Instructions 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" . 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 3.11.3-62.) 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 3.11.3-62 EDITING RPC V ON A COMPUTER-GENERATED RETURNShown is a folded, Form 1040 and a second graphic showing a folded Form 1040-SR.RPC V has been edited in the left bottom margin at the bottom of page 1.At the very bottom of Form 1040, page 1, a black arrow is shown pointing to the alphas BBA located to the right of the statement, For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Please click here for the text description of the image. 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 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 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 System (CIS) IRM 3.11.3.6.2.7 Combined Tax Liabilities IRM 3.11.3.6.2.8 Community Property IRM 3.11.3.6.2.9 Form 8938, Statement of Foreign Financial Assets IRM 3.11.3.6.2.10 Injured Spouse IRM 3.11.3.6.2.11 Innocent Spouse IRM 3.11.3.6.2.12 International IRM 3.11.3.6.2.13 Misblocked IRM 3.11.3.6.2.15 Misfiled IRM 3.11.3.6.2.16 Reinput IRM 3.11.3.6.2.17 Returns Secured by Collections IRM 3.11.3.6.2.18 Short Period IRM 3.11.3.6.2.19 Substitute for Return IRM 3.11.3.6.2.20 52-53 Week IRM 3.11.3.6.2.21 Blind Trust IRM 3.11.3.6.2.22 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. Other notations and conditions may also require special editing. These are included in the line-by-line instructions. 3.11.3.14.2 (12-11-2020) Income, Adjustments, and Credits - Lines 1 through 32 All lines on Form 1040 are edited in dollars only except lines 24 through 38. 3.11.3.14.2.1 (12-11-2020) Line 1 - Wages Use the table below for editing conditions on line 1, Form 1040: Condition on Line 1 Action Entry on line 1, no Form W-2 attached. Take no action. Form W-2 is not required for line 1. (May be required as support for earned income when EIC is claimed.) (See IRM 3.11.3.14.2.23.) Line 1 is blank. Edit amounts from Wages, tips and other compensation box on Forms W-2. Exception: Do not edit to line 1 if Form W-2 income is for a minister, insurance salesman, or statutory employee and the income is reported elsewhere on the return. Amount deducted from line 1. If the same adjustment amount is also deducted on Schedule 1 lines 10 - 21, adjust line 1 to include the amount. Self-Employment Income (See Exhibit 3.11.3-10 for an extensive listing of types of self-employment.) Subtract from line 1 and add to Schedule 1 line 8. 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. If amount is $434 or more and Schedule SE is not attached or reported, also edit RPC "N" . If Form 1099-MISC is attached with or without a notation and an amount is present in box 7, Form 1099-MISC, edit RPC "N" unless the amount is less than $434 or Schedule SE is present. Note: Do not edit RPC "N" if any of the following conditions exist: - Self-Employment and non self-employment cannot be broken down. - Taxpayer reported self-employment income on line 1 and included the amount on Form 8919. Use the table below for editing taxpayer notations on line 1, Form 1040: Noted by Taxpayer on Line 1 Action Adoption Benefit (AB) Take no action. Combat Pay Excluded Edit CCC "Y" and an Action Trail. Dependent Care Benefits (DCB) Take no action. Deferred Compensation (DFC) Edit RPC "B" . Disability Pension Delete from line 1 if indicated to be nontaxable. If statement indicates treatment as retirement pension, delete from line 1 and add to line 5b. Note: If Disability Pension is identified on line 5a or 5b, take no action. If Form 1099-R, box 7, has Distribution Code 3, take no action. Foreign Employer Compensation (FEC) Take no action. Fringe Benefits (FB) Take no action. Gambling (Gross: losses not subtracted) Subtract gambling amount from line 1 and add to Schedule 1 line 8. 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. If Schedule A is attached, see IRM 3.11.3.18.1. Gambling (Net: winnings minus losses) No indication of a professional gambler: If a gain or a loss, "X" line 1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 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. If net amount is zero, and no gross amount is indicated on the dotted portion of line 1, and: • Form W-2G is attached, edit CCC "Y" and an Action Trail. • Form W-2G is not attached, correspond for gross winnings with Form 3531/6001, using fill-in "7" , per Exhibit 3.11.3-17. Indication of professional gambler: Subtract gambling amount from line 1 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. Correspond for Schedule C, if not attached. 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 13, SE liability box. Household Employee Income (HSH) Edit SPC "E" . Note: "HSH" may appear to the left of line 1, or on line 1 with a dollar amount present. Note: HSH is an acceptable source for EIC. 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 Non-Disability Pension Move the amount to line 5b. (See Figure 3.11.3-63.) Non-Employee Compensation Subtract from line 1 and add to Schedule 1 line 8. 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. 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 - employee compensation 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 line 1. Pension See Disability or Non-Disability Pension. Prisoner Income (PRI) Edit RPC "B" . See IRM 3.11.3.6.1.6(6). Railroad Retirement Benefits If gross and taxable amounts with a difference of $1 or more can be determined, move to lines 5a and 5b. See IRM 3.11.3.14.2.5. Otherwise, edit the amount to line 5b. Scholarship (SCH), Fellowship, Grant, or Stipend Edit RPC "B" . If indicated to be nontaxable, subtract from line 1 and correct any other taxpayer adjustments and edit RPC "G" . Sick Pay Take no action. Social Security Benefits If gross and taxable amounts can be determined, move to lines 6a and 6b. Otherwise, move the amount to line 6b. Strike Pay/Benefits Take no action. Sub-Pay TRA (Repayment of Supplemental Unemployment Benefits (SUB)) If repayment is indicated on dotted portion of Schedule 1 line 22 and it is for SUB amounts received in: Tax period of return - delete the repayment amount and adjust line 1 to exclude it. Prior tax period - do not adjust line 1. Note: If the year of payments is not noted, assume they were made in the tax period of the return. Unemployment Compensation Subtract from line 1 and add to Schedule 1 line 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. Use the table below for editing taxpayer notations on other than line 1, Form 1040: Noted by Taxpayer on other than Line 1 Action Dependent Care Benefits (DCB) Move to line 1. Deferred Compensation (DFC) Move to line 1. Edit RPC "B" . Disability Pension (not on lines 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. Move to line 1. Scholarship (SCH), Fellowship, Grant, or Stipend Move the taxable amount to line 1. Edit RPC "B" . Sick Pay Move to line 1. Strike Pay/Benefits Move to line 1. W-2 Income Move to line 1. Exception: Leave where found and edit RPC"S" if taxpayer is a minister, insurance salesman, or if statutory employee is indicated. Figure 3.11.3-63 Editing Lines 1 and 5b: Non-Disability Pension Income Noted on Line 1Shown is the income portion of Form 1040 and a Form 1099-R.The income portion of Form 1040 shows the following: The dotted portion of Line 1, Wages, salaries, tips, etc. - Pension $7200 on the dotted portion.Edited in red to the right of Pension $7200 is 58450.Line 1, Wages, salaries, tips, etc. - 65650.A red X is edited to the left of the 65650 entry on Line 1, Wages, Salaries, tips, etc because pension, which is notated by the taxpayer, is on the wrong line.Line 5b, taxable amount of pension - 7200 is edited in red from the misplaced amount that was on Line 1.Form 1099-R has the following entries: Payer's name, street address, city, state and ZIP code - Swan Insurance 654 Finch Road Kansas City, KS 66110.Payer's federal identification number - 00-3219872.Recipient's identification number - 000-00-2254.Recipient's name - Rachel P. Robin.Street address (including apt. no.) - 5631 Cardinal AveCity, state, and ZIP code - Kansas City, KS 66110Box 1, Gross Distribution - 10000.00Box 2a, Taxable amount - 7200.47Box 4, Federal income tax withheld - 584.23Box 7, Distribution code - 7. Please click here for the text description of the image. 3.11.3.14.2.2 (01-01-2019) Line 2a -Tax-Exempt Interest (TEI) 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. 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" 3.11.3.14.2.3 (01-01-2019) Line 2b -Taxable Interest Income 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. 3.11.3.14.2.4 (01-01-2019) Line 3b - Ordinary Dividends 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. If the amount on line 3b matches the entry on line 1, Form 1040, "X" the amount on line 3b. 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. If line 3b is less than 3a, "X" line 3b. If an amount identified as "Alaska Permanent Fund" is present on line 3b: "X" line 3b. Edit the amount to Schedule 1 line 8. Note: It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond. 3.11.3.14.2.5 (11-29-2019) Lines 4a and 4b - IRAs 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 3.11.3-64.) Do not edit the amount from 4a on line 4b when line 4b is blank. Figure 3.11.3-64 “X”- ING LINE 4aShown is the Income portion of Form 1040 containing the following entries: Line 1, Wages, salaries, tips, etc - 56147.Line 4a, IRS distributions - 677.55. A red X has been edited to the left of this entry to delete line 4a because lines 4a and 4b are the same or there is a difference of less than $1.Line 4b, Taxable amount - 678.Line 6, Total income - 56825. Please click here for the text description of the image. 3.11.3.14.2.6 (12-11-2020) Lines 5a and 5b - Pensions and Annuities Delete the amount on line 5a when lines 5a and 5b are the same or there is a difference of less than $1. Do not edit the amount from 5a to line 5b when line 5b is blank. Do not move pension income from line 5b to line 1. Move the gross and taxable amounts of Railroad Retirement Benefits (RRB) to lines 5a and 5b when claimed elsewhere on the return. 3.11.3.14.2.7 (12-11-2020) Lines 6a and 6b - Social Security Benefits If an amount is present on line 6b and the amount on line 6a is the same or line 6a is blank: If Form SSA-1099 is attached, edit the gross Social Security amount in box 5 to line 6a. Take no action when the gross amount of Social Security payments cannot be determined. "X" a negative amount on line 6a or 6b. Take no action when the taxpayer writes: "D" on line 6a or 6b "Lump-Sum Exclusion" or "LSE" to the left of line 6a 3.11.3.14.2.8 (12-11-2020) Line 7 - Capital Gain or Loss Edit RPC "T" when all the following apply (see Figure 3.11.3-65): 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 3.11.3-65 EDITING RPC “T": POSITIVE LINE 7 AMOUNT PRESENT, THE BOX IS CHECKED AND SCHEDULE D IS NOT ATTACHEDShown is Page 1, Form 1040. Caption area reads: Ridley J. Whippet, 1302 Rose Robin Way, Richmond VA 23232.Your social security number - 000-00-7855.A red RPC T is edited to the bottom margin on the left of the page Please click here for the text description of the image. 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 from which a Schedule D 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 3.11.3-66.) 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 3.11.3-67.) 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. 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. 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 3.11.3-66 DUMMY SCHEDULE D FROM AN ATTACHMENT: COLUMN (h) CAN BE DETERMINEDShown is Form 1099-B, Proceeds from Broker and Barter Exchange Transactions and a portion of Schedule D from line 7 to line 15.Form 1099-B shows the following entries under the Short Term portion of the form. First line: Description, Badger & Elk. Date of sale or exchange, 04/21/20. Federal Income Tax Withheld, blank. Gross Proceeds (Less Commissions and Fees), 213.00. Gain (loss), 75.78.Second line: Description, Whippet Semiconductor. Date of sale or exchange, 06/26/20. Federal Income Tax Withheld, blank. Gross Proceeds (Less Commissions and Fees), 745.78. Gain (loss), (274.84).Third line: Description, Lizard & Lotus. Date of sale or exchange, 06/29/20. Federal Income Tax Withheld, blank. Gross Proceeds (Less Commissions and Fees), 382.25. Gain (loss), 93.23.Total, Gain (loss), (105.83). This amount is edited in red on line 7 as (105). An arrow is shown from the Form 1099-B (Short Term) total showing the Gain or Loss is edited to line 7, Schedule D.Form 1099-B shows the following entries under the Long Term portion of the form. First line: Description, Fox, Inc. Date of Sale or exchange, 04/19/20. Federal Income Tax Withheld, blank. Gross Proceeds (Less Commissions and Fees), 410.78. Gain (loss), (25.78).Second line: Description, Maverick Industries. Date of sale or exchange, 06/21/20. Federal Income Tax Withheld, blank. Gross Proceeds (Less Commissions and Fees), 1374.74. Gain (loss), (789.48).Third line: Description, Garter & Gold. Date of sale or exchange, 12/13/20. Federal Income Tax Withheld, 1406.39. Gross Proceeds (Less Commissions and Fees), 7031.95. Gain (loss), 1486.74.Total, Federal Income Tax Withheld, 1406.39.Total, Gain (loss), 671.48. This amount is edited in red on line 15 as 671. An arrow is shown from the Form 1099-B (Long Term) total showing the Gain or Loss is edited to line 15, Schedule D. Please click here for the text description of the image. Figure 3.11.3-67 DUMMYING SCHEDULE D FROM A POSITIVE ENTRY ON LINE 7 FORM 1040/1040-SRShown is a portion of Form 1040 depicting lines 1 through 7 with a Schedule D on top.Form 1040 shows the following entries present: Line 7, Capital gain or (loss) -- 719.52.The dummied Schedule D shows the following entry: Line 7, Net short-term capital gain or (loss). 719 is edited in red from the positive entry on line 6 Please click here for the text description of the image. 3.11.3.14.2.9 (12-11-2020) Line 8 - Other Income 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 10a, correspond for only one missing Schedule 1. Use the first entry amount and line number on the return. Exception: If a Schedule 1 can be dummied from attachments, do not correspond for a Schedule 1 unless already corresponding for other missing information. See paragraph (2) below. Do not correspond if it can be determined that line 8 on the Form 1040 has been used as a subtotal line. 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 of 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. 3.11.3.14.2.10 (12-11-2020) Line 9 - Total Income Compute and edit line 9 when it is blank, dash or zero and there are any entries on lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. 3.11.3.14.2.11 (12-11-2020) Line 10a (Not Transcribed) through 10c - Adjustments to Income If there is an amount entered on Form 1040, line 10a, Schedule 1 must be attached. If not attached look for attached documents from which you can dummy a Schedule 1, lines 10-21 (Form 2106, 8889, 3903, 8917, Schedule SE): If located dummy Schedule 1 Otherwise correspond for an explanation of the line 10a amount. Exception: If a Schedule 1 can be dummied from attachments, do not correspond for a Schedule 1 unless already corresponding for other missing information. If corresponding for Schedule 1 for entry on line 8 and line 10a, correspond for only one missing Schedule 1. Use the first entry amount and line number on the return. 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 11, Schedule 1 Form 8889 is attached with an amount on line 13, Dummy the line 13 amount to line 12, Schedule 1 Form 3903 is attached with an amount on line 5, Dummy the line 5 amount to line 13, Schedule 1 Schedule SE is attached with an amount on line 13, Dummy the line 13 amount to line 14, Schedule 1 Form 8917 is attached with an amount on line 6, Dummy the line 6 amount to line 21, Schedule 1 Compute and edit line 10c by adding lines 10a and 10b when it is blank or illegible and there are entries leading to a total. 3.11.3.14.2.12 (12-11-2020) Line 11 - Adjusted Gross Income Perfect line 11 when it is blank, dash, zero, or illegible by subtracting line 10c from line 9. 3.11.3.14.2.13 (12-11-2020) Line 12 - Standard Deduction or Itemized Deductions (Not Transcribed) 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. "IE" is noted to the left of line 12, and the amount claimed is ≡ ≡ ≡ ≡ ≡ ≡ 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 3.11.3-68.) Note: Do not factor in filing status or ABI when making determinations on standard deduction. Filing Status ABI Boxes marked Appropriate Amount 1 - Single 0 $12,400 1 - Single 1 $14,050 1 - Single 2 $15,700 2 - Married Filing Jointly or 5 - Qualifying Widow(er) 0 $24,800 2 - Married Filing Jointly or 5 - Qualifying Widow(er) 1 $26,100 2 - Married Filing Jointly or 5 - Qualifying Widow(er) 2 $27,400 2 - Married Filing Jointly or 5 - Qualifying Widow(er) 3 $28,700 2 - Married Filing Jointly or 5 - Qualifying Widow(er) 4 $30,000 3 or 6- Married Filing Separately 0 $12,400 3 or 6- Married Filing Separately 1 $13,700 3 or 6- Married Filing Separately 2 $15,000 3 or 6- Married Filing Separately 3 $16,300 3 or 6- Married Filing Separately 4 $17,600 4 or 7- Head of Household 0 $18,650 4 or 7- Head of Household 1 $20,300 4 or 7- Head of Household 2 $21,950 Figure 3.11.3-68 Correspondence Conditions: Schedule A Not AttachedPart a is titled, The amount on line 12 is not a standard deduction amount. Entries are present as follows: Filing status is 1, single.Line 1, wages, salaries, tips, etc. amount is 34580.Amount from line 7 (adjusted gross income) - 34580.00. Line 11, Itemized deductions (from Schedule A) or your standard deduction - 12575.00.Text box is present that reads: Correspond for Schedule A.Part b is titled, The amount on line 12 is a standard deduction amount. Entries are present as follows: Filing status is 4, Head of Household. Taxpayer’s full name: Jasper Spruce.Line 9, total income amount is 63009.00.Amount from line 11(adjusted gross income) - 63,009.00 Line 12, Itemized deductions (from Schedule A) or your standard deduction - 7,550.00Text box is present that reads: Do not correspond for Schedule A. Please click here for the text description of the image. 3.11.3.14.2.14 (12-11-2020) Line 13 - Qualified Business Income Deduction For TY19 and later, if an amount is present, Form 8995 or Form 8995-A must be attached. If missing, correspond for Form 8995-A. Note: See IRM 3.11.3.52, Form 8995 / 8995-A / 8995-A Schedule C - Qualified Business Income Deduction, for possible editing of SPC "6" . 3.11.3.14.2.15 (12-11-2020) Line 15 - Taxable Income Compute and edit line 15 only when it is blank or illegible, and there are entries leading to a positive total. 3.11.3.14.2.16 (12-11-2020) Line 16 - Tax 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. 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. 3.11.3.14.2.17 (12-11-2020) Line 17 - Additional Taxes (Not Transcribed) 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. Follow instructions below for dummying Schedule 2 Part I: If Then Form 6251 is attached Dummy the line 11 amount to line 1, Schedule 2 Form 8962 is attached Dummy the line 29 amount to line 2, Schedule 2 3.11.3.14.2.18 (12-11-2020) Line 20 - Non-Refundable Credits (Not Transcribed) If an amount is present on line 20, Schedule 3 must be attached. If Schedule 3 is not attached, correspond for Schedule 3. If Schedule 3 is attached, line 20 of Form 1040 is $500 or more and lines 1-6 of Schedule 3 are blank, correspond for an explanation unless the taxpayer indicated FNS. For Form 6001, check box "P" . For Form 3531, check box "15" . Exception: If a Schedule 3 can be dummied from attachments, do not correspond unless already corresponding for other missing information. Follow instruction below for dummying Schedule 3 Part I: If Then Form 1116 is attached, Dummy the line 33 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 5, Schedule 3. Form 3800 is attached, Dummy the line 38 amount to line 6, Schedule 3. Form 8801 is attached, Dummy the line 25 amount to line 6, Schedule 3. 3.11.3.14.2.19 (12-11-2020) Line 23 - Other Taxes If an amount is present on line 23 and Schedule 2 is not attached or Schedule 2 is attached and lines 4 through 9 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. 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 5, Schedule 2. Form 8919 is attached, Dummy the line 13 amount to line 5, Schedule 2. Form 5329 is attached, Dummy the line 4 amount to line 6, Schedule 2. Schedule H is attached, Dummy the line 26 amount to line 7a, Schedule 2. Form 5405 is attached, Dummy the line 8 amount to line 7b, Schedule 2. Form 8959 is attached, Dummy the line 18 amount to line 8, Schedule 2. Form 8960 is attached, Dummy the line 17 amount to line 8, Schedule 2. 3.11.3.14.2.20 (12-11-2020) Line 24 - Total Tax Edit line 24 as dollars and cents when adjusting or computing and editing amounts. Compute and edit line 24 when it is blank, dash, zero (0), or illegible and there are entries leading to a total. 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. 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 3.11.3-69.) 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 3.11.3-70.) 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 3.11.3-69 EDITING CCC “B”: LINE 15 IS ZERO AND LINES 16 - 38 ARE BLANKEntries present on page 1 are as follows: A red B (indicating no tax due or refund due) has been edited in the blank area to the right of Standard Deduction area.Line 1 - 10208.Line 2a - 18.Line 4b - 10050.Line 9, - 20276.Line 12 - 20276.Line 14 - 24400.Line 15 - zeroPage 2, lines 16 through 38 are shown with no entries present. Please click here for the text description of the image. Figure 3.11.3-70 EDITING CCC “B”: LINE 16 IS LESS THAN OR EQUAL TO LINE 21 WHEN LINES 22 THROUGH 38 ARE BLANKEntries present on page 1 are as follows: Filing status is 2, Married filing jointly.Caption, Line 1 - Edward Greyhound.Caption, Line 2 - Jennie Greyhound.Your Social Security Number is 000-00-6597Spouse's Social Security Number is 000-00-9645Caption, Line 3 - 5608 S Husky St.Caption, Line 4 - Phoenix, AZ 85026.A red B is edited (to indicate no tax due or no refund due) in the blank area to the right of the Standard Deduction area.Entries present on page 2 are as follows:Line 16 - 299.Line 18 - 299.Line 20 - 314.Line 21- 314. Please click here for the text description of the image. 3.11.3.14.2.21 (12-11-2020) Line 25a through 25d - Withholding Take one of the following actions for line 25: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Exception: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: If none of the conditions described above apply, take no action If corresponding for other missing items, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ For Form 6001 use box H, for Form 3531 use box 4. Note: An acceptable alternative source for withholding support may be a worksheet or attachment if it 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. 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 3.11.3.14.2.21(2). Note: Edit CCC "8" when there is one Form 4852 present or multiple Forms 4852 present to support withholding and no other withholding documentation is present. Handwritten, see Figure 3.11.3-71 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 3.11.3-71 EDITING CCC “8”: REFUND RETURN HAS WITHHOLDING SUPPORTED BY A SINGLE HANDWRITTEN FORM W-2Shown are portions of pages 1 and 2 of Form 1040. Also shown is a single handwritten Form W-2.Entries on Form 1040 are as follows: Box 1, Single, is marked.Name Melinda Swan has been entered.A red CCC 8 is edited in the blank space to the left of Your spouse as a dependent.Line 25a, Federal income tax withheld from Form W-2 - 1439.Line 25d, Add lines 25a through 25c - 1439.Entries present on the handwritten Form W-2 are as follows: Box a, Employer's Social security number - 000-00-6587.Box b, Employer identification number (EIN) - 00-0428730.Box c, Employer's name, address and ZIP code - Robin and Eagle, Ltd., 25 Finch Way, Louisville, KY 40201.Box e, Employee's first name and initial - last name - Melinda Swan, 2714 Grouse St., Louisville, KY 40201.Box 1, Wages, tips, other compensation - 12,800.00.Box 2, Federal Income tax withheld - 1,439.00.Box 3, Social Security wages - 12,800.00.Box 4, Social security tax withheld - 793.60.Box 5, Medicare wages and tips - 12,800.00.Box 6, Medicare tax withheld - 185.60.A double-ended black arrow is present over the graphic pointing to Form 1040, line 64 and to Form W-2, box 2. Please click here for the text description of the image. 3.11.3.14.2.22 (12-11-2020) Line 26 - Estimated Tax Payments Delete and edit to the correct line any amounts determined to be other than: ES tax payments An overpayment applied from the 2019 return 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. 3.11.3.14.2.23 (12-11-2020) Line 27 - Earned Income Credit (EIC) The taxpayer will claim EIC by any of the following: Entering an amount on line 27. Writing "EIC" in the line 27 area. Attaching Schedule EIC with entries. 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 $15,820 ($21,710 for FS 2), 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 $15,820 ($21,710 for FS 2) but less than $50,954 ($56,844 for FS 2), Correspond for Schedule EIC with Form 3531/6001 using fill-in "32" , per Exhibit 3.11.3-17. Note: Do not edit CCC "B" if "888" has been edited or "EIC" is noted. 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 $15,820 ($21,710 for FS 2) and less than $50,954 ($56,844 for FS 2) Line 27 is greater than $538 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 FS is 3 or 6 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 $50,954 ($56,844 for FS 2) or more You can determine the entire income amount to be non-earned income 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 3.11.3-72.) For Form 6001, check box Y. For Form 3531, check box 16. 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 3.11.3-72 CORRESPOND FOR THE SOURCE OF EARNED INCOME: EIC CLAIMED ON LINE 27Shown are portions of page 1 and page 2, Form 1040.Page 1 contains the following entries: Partial pages 1 and 2 of Form 1040 shows the following entries: Line 1, Wages, salaries, tips, etc. Attach Form(s) W-2 - 4185.Line 9, This is your total income - 4185.Line 11, This is your adjusted gross income - 4185.Line 27, EIC - 434Line 32 - 434Lines 33, 34, and 35a - 434Text box is present over the graphic reads, No income documents attached: RESEARCH. Instruction at bottom of the graphic reads, Correspond only if the FS is other than 3 or 6, Line 11 of Form 1040 is less than $50,954 (56,844 for FS2) and the amount cannot be determined to be non-earned income. Please click here for the text description of the image. Earned Income NOT Earned Income Form W-2 or similar statement Form 1099-MISC Form 1099-NEC 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 Notation of "HSH" Notation to the left of Schedule 1 line 8 indicating self-employment Notation of prior year earned income (PYEI) 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 Edit RPC "B" when there is no significant entry on line 27 and the taxpayer has written: "No" or "None" in the line 27 area. (See Figure 3.11.3-73.) "Amish" or "Mennonite" anywhere on the return. "Exempt Notary" , "Exempt Form 4029" , or "Exempt Form 4361" anywhere on the return. A clear indication that he/she does not want or does 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. "X" the amount on line 27 and edit RPC "B" when any of the following are present: a clear indication that an exemption from SE tax was given on Form 4029 or Form 4361 Form 4029 or Form 4361 is attached notation of "Exempt/Notary" or "Exempt" notation of "Amish" notation of "Mennonite" Figure 3.11.3-73 EDITING RPC “B”: TAXPAYER HAS WRITTEN “NO” IN THE LINE 27 AREA, EIC NOT CLAIMEDShown are portions of pages 1 and 2, Form 1040.Page 1 of Form 1040 shows the following entries: Line 11, AGI is $29400.Line 12 Standard or Itemized Deductions is $12,400Line 14 is $12,400Line 15, Taxable Income is $17,000Page 2 of Form 1040 shows the following entries: Line 25d, Federal income tax withheld from Forms W-2 and 1099 - 3350. Line 27, Earned Income Credit (EIC) - The taxpayer wrote No on line 17a to indicate she is not eligible for EIC.Line 33, Total Payments - 3350. Please click here for the text description of the image. 3.11.3.14.2.24 (11-29-2019) Nontaxable Combat Pay Election Nontaxable Combat Pay is a write-in by the taxpayer to the left of line 27 area. Take no action 3.11.3.14.2.25 (12-11-2020) Line 28 - Additional Child Tax Credit (Schedule 8812) If an amount is claimed on line 28, Schedule 8812 must be attached when three or more children with SSNs are claimed as Dependents on Form 1040. Note: For TY18 and later ITINs are not valid on Schedule 8812. If Schedule 8812 is missing and the condition above applies, correspond. 3.11.3.14.2.26 (12-11-2020) Line 29 - Refundable Education Credit If an amount is claimed on line 29, Form 8863 must be attached. If missing, correspond for Form 8863. 3.11.3.14.2.27 (12-11-2020) Line 30 - Recovery Rebate Credit (Reserved) 3.11.3.14.2.28 (12-11-2020) Line 31 - Other Payments and Credits If an amount is claimed on line 31, Schedule 3 must be attached. Correspond for Schedule 3 if missing. Exception: If a Schedule 3 can be dummied from attachments, do not correspond unless already corresponding for other missing information. 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 13, Schedule 3. 3.11.3.14.2.29 (12-11-2020) Line 32 - Total Other Payments and Refundable Credits Compute and edit line 32 when blank and there are entries leading to a total. Note: Do not include "888" when it has been edited on line 27. 3.11.3.14.2.30 (12-11-2020) Line 33 - Total Payments When there is an amount on line 33 and lines 25d, 27, 28, 29, 30 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 1, 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 P, for Form 3531 use box 15. The amount on line 33 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ there are no significant entries on lines 1, 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 1, 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 1, 4b or 5b Form 1040 or line 7, Schedule 1, Edit the amount to line 26. 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. Compute and edit line 33 when it is blank, dash or zero and there are entries present leading to a total. 3.11.3.14.3 (12-11-2020) Refund or Amount Owed - Lines 34 through 38 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. 3.11.3.14.3.1 (12-11-2020) Line 35a - Refund 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: Line 24 has an entry. The taxpayer computed or indicated no tax due on lines 16, or 24. It can be determined that line 24 would be zero if it were computed. Do not edit CCC "B" when line 35a has been computed to be a significant amount. Edit Action Code "341" when the amount on line 35a is: Less than $1 and the taxpayer submits a written request for a refund. 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). 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" . 3.11.3.14.3.2 (12-11-2020) Lines 35b, 35c, and 35d - Direct Deposit Information 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. Take the following actions to perfect lines 35b, 35c, and 35d: If Then Routing number present Account number present Neither checking or 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 3.11.3-74a.) Routing number present Account number present Both checking and savings box marked Circle the box that represents "savings" . (See Figure 3.11.3-74b.) 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 right of the blank line. (See Figure 3.11.3-75a.) Routing number blank Account number blank Both checking and savings boxes blank Edit a single "X" over Routing and Account number lines. (See Figure 3.11.3-75b.) 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 3.11.3-75c.) Routing number altered and/or Account number altered 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 3.11.3-75d.) 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 3.11.3-75e.) Pre-printed X’s are Present in Routing number Account number Checking and savings Edit a single "X" over Routing and Account number lines. (See Figure 3.11.3-75f.) 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 3.11.3-75g.) Note: If entries other than X are present, such as the dash or asterisk, they should be treated the same as an X. Figure 3.11.3-74 Editing Direct Deposit Information on Line 35aGraphic a: This graphic demonstrates editing Direct Deposit checkboxes when the information is to be picked up by Data Conversion. Both routing number and account number are present and a red checkmark has been edited to the left of the lines. Neither checking or savings box have been checked. A red checkmark has been edited in the checking box.Graphic b: This graphic demonstrates editing Direct Deposit checkboxes when the information is to be picked up by Data Conversion. Both routing number and account number are present and a red checkmark has been edited to the left of the lines. Both checking or savings boxes have been checked. The savings box had been circled in red. Please click here for the text description of the image. Figure 3.11.3-75 Editing Direct Deposit Information on Lines 35b and 35dThis graphic demonstrates deleting the Direct Deposit information when it is not to be transcribed. There are 7 figures.Figure a demonstrates deleting the account number when the routing number is present. A small rex x had been edited in the first box of the account number.Figure b demonstrates Please click here for the text description of the image. 3.11.3.14.3.3 (12-11-2020) Line 36 - ES Credit Elect When lines 34, 35a, and 36 are the same, see Figure 3.11.3-76 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). 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. 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 3.11.3-76 EDITING LINES 35a AND 36Shown are three graphics depicting the Payments and Refund sections of Form 1040 and the 2nd and 3rd graphic a portion of Schedule 5.First graphic's entries are as follows: Line 33, Total Payments - 3172.27.Line 34, Amount you overpaid - 627.76.Line 35a, Amount of line 34 you want refunded to you - 627.76.Line 36, Amount of line 34 you want applied to your 2021 estimated tax - 627.76. There is a red X edited to the left of the dollar amount.Text at the bottom of the graphic reads: X Line 36 when ES tax payments are not claimed and Lines 34, 35a, and 36 have the same entries.Second graphic's entries are as follows: Line 26, 2020 estimated tax payments - 500.00Line 33, Total Payments - 2645.00.Line 34, Amount you overpaid - 445.00Line 35a, Amount of line 34 you want refunded to you - 445.00. There is a red X edited to the left of the dollar amount.Line 36, Amount of line 34 you want applied to your 2021 estimated tax - 445.00.Text at the bottom of the graphic reads: X Line 35a when ES tax payments are claimed and Lines 34, 35a, and 36 have the same entries.Third graphic's entries are as follows: Line 33, Total Payments - 3670.00.Line 34, Amount you overpaid - 1200.00.Line 35a, Amount of line 34 you want refunded to you - 600.00.Line 36, Amount of line 34 you want applied to your 2021 estimated tax - 600.00Text at the bottom of the graphic reads: Allow the division of the overpayment amount between refund and ES credit elect when Lines 35a and 36 are different from Line 34. Please click here for the text description of the image. 3.11.3.14.3.4 (12-11-2020) Line 37- Amount You Owe (Balance Due) 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. Do not edit CCC "B" when line 37 has been computed to a significant amount. 3.11.3.14.3.5 (12-11-2020) Line38 - Estimated Tax Penalty (Form 2210 or Form 2210-F) 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 Fisherman, (Sequence Code 06A) are not transcribed forms. Delete these forms after editing line 38. Edit CCC "P" when Form 2210 is attached and any of the following conditions apply: 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. 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" Any of C-E in Part II, are marked. There is any indication on Form 2210, or in the line 38 area of Form 1040 of Annualized Income (AI): Disaster/loss is indicated other than Federally Declared Disaster. (See Exhibit 3.11.3-8.) 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. Edit CCC "P" when Form 2210-F is attached and all the following conditions are met: Tax Period is 2020/12 and, Box A (relating to a waiver) Part I, is checked and, The return was received no later than April 15, 2021 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Edit CCC P when Form 2210-F is attached and all the following conditions are met: Tax period ended 2020 or 2021 with a month ending other than 12 (i.e. fiscal year return). 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 merely because there is any indication that the taxpayer is a farmer or fisherman. DO NOT edit CCC P on a return for TY18 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. If line 38 is blank, edit to line 38 any significant amount from: Form 2210, line 17 or line 27 Form 2210-F, line 16 When CCC P is edited, compare the line 38 entry with the amount on Form 2210, either line 17 or line 27 (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: "X" the line 38 entry. Edit the amount from Form 2210 or Form 2210-F to line 38. 3.11.3.14.4 (02-24-2020) Third Party Designee (Reserved.) 3.11.3.14.5 (01-24-2020) Signature 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 himself or herself has arrowed their signature to the correct area. Correspond using Form 3531 to mail back a tax return with a missing or invalid signature to the taxpayer. Mark boxes as appropriate. 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 returns, correspond for missing signatures using Form 6001/6001-A. Do not send the return back to the taxpayer. Correspond for an original signature only when you cannot clearly determine whether the present signature is an original signature. 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. For returns with signatures or an exception listed in paragraphs (7) and (8), continue processing. If correspondence is needed, follow normal correspondence instructions. Faxed or scanned signatures are acceptable only when they are received from another IRS area. 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 System (CIS) from Accounts Management - Returns stamped by RIVO and/or edited with SPC "B" or "M" - Taxpayer Advocate Service (TAS) Note: TAS should refer to IRM 13.1.18.6.3 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) 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. If any required information is missing or incomplete, edit CCC "3" . Do not correspond on returns that have an acceptable faxed or scanned signature. Joint returns require the signature of both taxpayers except when a notation indicates the spouse is: Deceased and taxpayer is filing as the surviving spouse A "POW-MIA" Unable to sign the return due to health reasons In a combat zone/qualified hazardous duty area 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. Correspond for a required missing signature unless: "Substitute for Return Prepared by IRS" is noted, a signed Form 1040X is attached for the same period with an original signature, "See 1040X" is noted, or "dummy" return "Section 6020(b)" or "prompt assessment" is noted or Form 4810 is attached Return is "amended" , "corrected" , "revised" , "tentative" , or "superseding" (See the amended return instructions in IRM 3.11.3.6.2.1.) Form 8879 is attached with a valid original 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. The return is coming from Exam, Collection or Accounts Management and "PAO" or "Process as Original" is present on the return. An employee's IDRS number is present on the signature line. Taxpayer signed an attached CP59 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 CP59 or Letter 143C. 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. 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 this criteria should be pulled from the batch and routed to ASFR. See IRM 3.11.3.6.2.20.1. There is an indication of TRPRT (transcript of a return). Computer Condition Code (CCC) "3" is already present on the return. Correspondence Imaging System (CIS) return. Paper-printed MeF returns that are sent from TAS. Efile Graphic Print (Includes when the notation is circled out or lined through.) Centralized Office in Compromise, "OIC" or "COIC" is present on the return. 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. Treat the return as unsigned and correspond for the missing, legal signature(s) if the return has no jurat. Use Form 3531, Box 30. 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. When the jurat on a return has been altered or deleted treat it as a Frivolous Filing. For unnumbered returns, prepare Form 4227 and route the return to Examination. 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. If the taxpayer is a minor child and the return is signed by an individual other than the taxpayer: A minor child's return signed by their parent never requires documentary evidence. 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.) 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. If the return is signed by any of the following: An incompetent taxpayer's return signed by a parent or spouse never requires documentary evidence. 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. 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. 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 25 on a Form 3531. 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 "27" , per Exhibit 3.11.3-17. 3.11.3.14.6 (03-15-2019) Occupation Reserved. 3.11.3.14.7 (11-29-2019) Identity Protection Personal Identification Number (IP PIN) Identity Protection Personal Identification Number (IP PIN) is located in the "Sign Here" area of the return. There may be an IP PIN for both primary and secondary taxpayer, do not circle out. If FS 2 and both spouses have an IP-PIN, edit both as necessary. If it is more or less than 6 numeric digits, circle the IP PIN. If CP-01A is attached and the IP PIN box is blank, verify the taxpayer name(s) matches the name(s) on CP 01A and the tax return. If the name(s) match, edit the IP-PIN in the designated boxes. If the name(s) do not match between an attached CP-01A and the tax return, see Exhibit 3.11.3-1, Attachment Guide. 3.11.3.14.8 (12-11-2020) Paid Preparer Data Preparer data is located below the taxpayer signature area. 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 3.11.3-77.) 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 3.11.3-77 EDITING THE E-FILE WAIVER INDICATORShown is Form 8948, Preparer Explanation for Not Filing Electronically. Also shown is the bottom portion of page 2, Form 1040.On Form 8948 Box 1 Taxpayer chose to file this return on paper is marked.The bottom of page 1, Form 1040, shows Paid Preparer data is present.The bottom right margin of page 1, Form 1040, shows E-File waiver Code 1 edited in red form the box which was checked on the Form 8948. Please click here for the text description of the image. 3.11.3.14.8.1 (11-29-2019) Preparer Code The Preparer Code is edited to the right of the 3rd Party Designee checkbox in the lower right margin of Page 2, Form 1040. Edit the Preparer Code as follows: Edit "P" if there is an indication the return was prepared by the IRS. (i.e., "Prepared but not audited" , and "IRS Prepared but not audited" .) Edit "R" if there is an indication the return was reviewed by the IRS. Edit "H" if the Preparer's EIN is ≡ ≡ ≡ ≡ ≡ ≡ and delete the EIN. 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.
