3.11.3  Individual Income Tax Returns (Cont. 1)

3.11.3.6 
Special Situations and Returns

3.11.3.6.1 
Special Situations

3.11.3.6.1.5  (01-01-2016)
Examination Cases

  1. Returns with the following notations or attachments have been Examination cases. Edit the returns using regular editing procedures with the exception of 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

  2. 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.

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

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

  5. Route the return to Examination for additional action if the return cannot be processed.

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

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

    Note:

    Route the return to Examination using Form 4227. Note on Form 4227 that the return needs to be routed to the originator, usually a district office employee.

    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  (01-01-2016)
Frivolous Filer/Non-Filer Returns

  1. Prepare Form 4227, indicate "Frivolous" and route to Examination any unnumbered return on which the taxpayer:

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

    2. Makes use of a frivolous argument to reduce income or tax liability. (See (4) below for examples.)

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

      Note:

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

  2. Edit Action Code "331" and leave the return in the block when it is numbered. Pull unnumbered returns for routing to Examination.

  3. When a return meets criteria for a frivolous filing determination as shown in paragraph (4) below, route the return to FRP. FRP will review the return and if it meets their criteria for frivolous filing, will edit or stamp Audit Code "R" .

    Note:

    Delete Audit Code "R" and edit Action Code "213" when Form 2439 is attached and the refund is ≡ ≡ ≡ ≡ or less.

  4. 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 and Notice 2010-33 for additional examples and complete descriptions.

    • Wages not income

    • Wages of Primary Taxpayer deducted on Schedules A or C

    • Zero return and refund claimed

    • Zero return with frivolous argument

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

    • Altered Form/Altered Jurat/"UCC 1-207" / "UCC 1-308"

    • Entitlement Refund Requests - Filer claims exempt 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.

    • IRC References to avoid tax - 861, 1001, 1341, 3121, etc.

    • Form 2555 Deduction - Eliminates income on line 21 even though individual and their employer are U.S. residents

    • Taxpayer makes claims such as: Taxes are Voluntary/IRS has no authority to collect tax/Law does not require

    • Taxpayer makes claims such as: Not a person, Not a citizen, Untaxed

    • Protests government action or inaction

    • Prisoner returns citing any frivolous argument

    • Prisoner returns attaching calculations of income derived from work assignments within the prison (may be based on minimum wage) and generally claiming a refund of withholding (may be substitute Form W-2)

    • Confused Taxpayer Filings - Outlandish dollar amounts on any line and/or non-sensical or gibberish language.

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

3.11.3.6.1.7  (01-01-2016)
Refund Schemes

  1. Look for fraudulent tax returns. There should be review boxes established in Code and Edit for the following functions:

    • Criminal Investigation (CI). CI reviews investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. See Exhibit 3.11.3-12.

    • Examination (Exam). See Exhibit 3.11.3-14.

    • Integrity and Verification Operation (IVO). IVO reviews returns in schemes that in general make use of excessive withholding or false earnings. IVO also reviews Operation Mass Mailing (OMM) returns. OMM returns are often identical or vary only slightly. Returns referred to IVO returns are sorted by OMM criteria. See Exhibit 3.11.3-13

    • Frivolous Return Program (FRP). See Exhibit 3.11.3-11 and Exhibit 3.11.3-13.

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    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "

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

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

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

3.11.3.6.1.8  (01-01-2016)
Identity Theft

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

3.11.3.6.2  (01-01-2016)
Special Returns

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

3.11.3.6.2.1  (01-01-2016)
Amended Returns

  1. Route the return to the 1040X Function when any of the following notations or conditions are present:

    • "Amended"

    • "Corrected"

    • "Revised"

    • "Superseding"

    • "Tentative"

    • "Duplicate"

    • "Copy"

    • "Substitute"

    • 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 electronically filed return

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

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

  3. 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

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

    1. Edit Action Code "460" .

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

3.11.3.6.2.2  (01-01-2016)
Unprocessable Return

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

  2. Handle unprocessable returns as follows:

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

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

    Unnumbered, Give the return to your work leader. The work leader will refer to IRM 3.11.3.6.2.4 for instructions on proper disposal.

3.11.3.6.2.3  (01-01-2016)
Blank Return

  1. Edit RPC "L" on returns with all zeros or no significant entries present, or edited from attachments, on any of the following T-Lines:

    • Lines 7 through 79, Form 1040

    • Lines 7 through 51, Form 1040A

    • Lines 1 through 14, Form 1040EZ

    Reminder:

    When RPC "L" has been edited on the return, do not edit CCC "B" . RPC "L" does not negate the need for a Dependency Status Indicator (DSI), when applicable.

    Reminder:

    Correspond for a missing signature, if one is not present on a blank return.

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

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

  4. Edit CCC "E" when a statement indicates that the taxpayer will have no requirement to file returns in the future.

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

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

  7. If a return is blank, correspond for the following using Form 3531:

    • Credits

    • Income

    • Other taxes

    • Payment information or statement that taxpayer is not liable for this or subsequent tax year

    • Original signature under a jurat

3.11.3.6.2.4  (01-01-2016)
Incomplete Return

  1. If a Form 1040 or Form 1040A is missing page 1 or page 2, take the return to the work leader. The work leader will:

    1. Research for the status of the return.

    2. If possible, correspond for all missing information.

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

3.11.3.6.2.5  (01-01-2016)
Uncomputed Return

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

  2. An uncomputed return can be identified as follows:

    1. Form 1040 has no entries on lines 44, 45, 46, 47, 56, 63, 75, 76a, 77 and, 78 -- see Figure 3.11.3-5.

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

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

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

  4. Edit CCC "Y" - and an Action Trail - on an uncomputed return when both of the following conditions are present:

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

    2. No exemptions are claimed in positions 2 through 7, or an allocation of exemptions is indicated.

      Example:

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

    Figure 3.11.3-5
    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.11.3.6.2.6  (01-01-2016)
Blocked or Deferred Income Return

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

    1. Write "Information Return-Blocked Return-Do Not Process" on the blocked income return.

    2. Place the blocked income return behind the processable return and continue editing.

    Note:

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

  2. Prepare Form 4227 and route the return to "Correspondence" when a return with an indication of blocked or deferred income is not attached to another return.

3.11.3.6.2.7  (01-01-2016)
Correspondence Imaging System (CIS) Returns

  1. Process CIS returns as original filings and circle any notations of duplicate, amended or similar statements. 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  (01-01-2016)
Combined Tax Liability Return

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

    • More than one tax period

    • More than one type of tax

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

    • More than one person filing a single return

  2. Correspond to inform the taxpayer(s) that each person (except married couples) must file a separate tax return for each tax period.

    1. When corresponding for multiple taxpayers:
      - If using Form 3531, check box 5.
      - If using Form 6001, use fill-in "42" , per Exhibit 3.11.3-17.

    2. When corresponding for multiple tax periods:
      - If using Form 3531, check box 4.
      - If using Form 6001, use fill-in "43" , per Exhibit 3.11.3-17.

  3. 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  (01-01-2016)
Community Property or Registered Domestic Partnership Return

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

  2. "X" any fractional exemption claimed.

  3. "X" the amount claimed for Excess Social Security taxes when wages are less than $59,250.

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

    1. An S-TIN is present

    2. Lines 7 to 21 and 23 to 36, Form 1040 (lines 7 to 14b and 16 to 20, Form 1040A) have no entries.

3.11.3.6.2.10  (01-01-2016)
Form 8938, Statement of Foreign Financial Assets

  1. For TY04 and later, process Forms 1040 with an attached Form 8938, Statement of Foreign Financial Assets, per the instructions in the table below:

    January through June July through December
    Process Form 1040 using current coding instructions, including the editing of CCC "H " .
    1. Fully code Form 1040.

    2. If multiple Forms 8938 are attached, select the form with the highest account or asset value (Part V or Part VI) and delete the others.

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

      Note:

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

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

    Reminder:

    Do not pull Forms 1040A or Forms 1040EZ with Form 8938 attached.

    Reminder:

    Do not include documents containing a TY13 and prior Form 1040 or Form 8938.

    Reminder:

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

3.11.3.6.2.11  (01-01-2016)
Injured Spouse Allocation Return, Form 8379

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

  2. Form 8379 may be filed with an original return or by itself. Claims filed without an original return must be sent to Accounts Management.

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

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

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

    2. Edit Action Code "611" .

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

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

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

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

3.11.3.6.2.12  (01-01-2016)
Innocent Spouse Relief Request, Form 8857

  1. A taxpayer may make a claim for relief from joint and separate tax liability or "relief from liability for community income" in the following four ways:

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

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

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

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

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

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

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

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

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

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

    4. Give the request to the work leader.

    5. Leave the return in the block and continue processing.

  5. Send all claims to CSPCdaily, using the following address:
    Internal Revenue Service
    CSPC (Cincinnati Submission Processing Center)
    Stop #840F
    201 West Rivercenter Boulevard
    Covington, KY 41011

  6. For CSPC, follow local procedures for routing the claim to Examination.

3.11.3.6.2.13  (01-01-2016)
International Return

  1. International tax returns are identified by the presence of one of the following:

    • An address outside the 50 United States and Washington D.C. (This does not include APO/DPO/FPO addresses).

    • Form 390 (American Samoa), American Samoa Individual Income Tax Return

    • Form 482.0/Formulario 482 (Puerto Rico), Planilla de Contribucion Sobre Ingresos de Individuous

    • Form 1040CM (CNMI), CNMI Territorial Individual Income Tax

    • Form 1040 GUAM, Guam Individual Income Tax Return

    • Form W-2 from American Samoa (W-2AS)

    • Form W-2 from CNMI (W-2CM)

    • Form W-2 from Guam (W-2GU)

    • Form W-2 from Virgin Islands (W-2VI)

    • Form 499R-2/W-2PR (Puerto Rican Withholding)

    • Form 1040NR, U.S. Nonresident Alien Income Tax Return

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

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

    • Form 1040-SS, U.S. Self-Employment Tax Return

    • Form 1042-S, Form SSA 1042-S, or Form RRB 1042-S

    • 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 8891, U.S. Information Return for Beneficiaries of Certain Canadian Registered Retirement Plans

    • Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Possession

    • Dual Status -- Form 1040 and Form 1040NR filed together for the same tax year, "Dual Status" or "D/S" indicated on the return (taxpayer claims part year residence and part year non - residence). Always leave Form 1040 and Form 1040NR or Form 1040NR-EZ for the same taxpayer together.

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

      Exception:

      Primary taxpayer is an NRA with no Social Security Number (SSN); however, secondary taxpayer has an SSN and W-2 income.

    • International Tax Treaty -- taxpayer indicating exemption or exclusion of tax and/or income due to an International Tax Treaty.

      Note:

      An American Indian treaty return is not considered an international return. If no international condition exists, consider it a domestic return.

    • Treaty Trader

    • Fulbright Grantee

    • IRC § 871, § 893, § 911,§ 913, § 931, § 932, § 933, § 934 or § 935 of the Internal Revenue Code (IRC) is notated anywhere on the return.

      Caution:

      If none of the International conditions listed above are present, consider it a domestic return and process it accordingly.

    • Any return with both a Virgin Islands Form W-2 and U.S. Income, regardless of the address.

      Note:

      Do not process or send to AUSPC any Form 1040, Form 1040A or Form 1040EZ with a Virgin Islands address if both of the following conditions apply:
      • The return has a Virgin Islands address, and
      All Form(s) W-2 or Form 1099 are from US territories. (Example: All Form(s) W-2 are Form(s) W-2VI)
      Pull these returns and transship to:
      Bureau of Internal Revenue
      6115 Estate Smith Bay, Suite 225
      St. Thomas, Virgin Islands 00802

  2. Do not route returns to Austin 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 7 or 21, Form 1040) or the presence of Form 1116 alone does not qualify for treatment as an international return. Do not forward these returns to AUSPC.

  3. Immediately forward international returns -- in their entirety -- to the Austin Submission Processing Campus (AUSPC) at the following address:
    Internal Revenue Service
    Austin Submission Processing Campus
    P.O. Box 934
    Austin, TX 78767

  4. If the return is unnumbered, take the following actions:

    1. Remove the return from the batch.

    2. Stop editing.

    3. Use Form 4227 to route the entire return to Receipt & Control for transshipment to AUSPC.

  5. If the return is numbered, take the following actions:

    1. Leave the return in the batch and edit Action Code "651" . (See Figure 3.11.3-6.)

      Exception:

      AUSPC should use Action Code "610" .

    2. Stop editing.

    Figure 3.11.3-6

    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.11.3.6.2.14  (01-01-2016)
Joint Committee Return

  1. Route to Examination returns with any of the following characteristics:

    1. The original tax liability on line 44 of Form 1040 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , and the total credit amount reported on line 55 of Form 1040 is ≡ ≡ ≡ ≡ ≡ or more.

    2. The original tax liability on line 44 of Form 1040 is reduced by ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ by any combination of credits or disaster loss from the tax period immediately following the tax period of the return. For example, the return is for tax period 1512, but the disaster loss occurs during 2016.

  2. Prepare Form 4227 and indicate "potential Joint Committee return" when returns with the characteristics listed in (1) above are identified.

    1. Edit Action Code "334" and leave the return in the block if it is numbered.

    2. Pull unnumbered returns for routing to Examination.

  3. Edit CCC "O" and Audit Code "L" if after review Examination indicates that the return is a "Joint Committee Return" .

3.11.3.6.2.15  (01-01-2016)
Misblocked Return

  1. All documents in a block of work must be the same type of return. A misblocked return is one found in a block of work other than the one in which it belongs.

    Example:

    Form 1040 in a Form 1040A batch or an ITIN return in a batch of regular work.

  2. Remove an unnumbered misblocked return for rebatching. (This also includes when an unnumbered return is found in a numbered batch or a numbered return in an unnumbered batch).

    Caution:

    There is a higher potential for misblocked returns after the Code and Edit function. 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, remember that credit card payments returns must be identified as remittance returns and batched as full or part paid returns.

  3. Numbered returns must not be removed from the block. Instead, take the following actions for all numbered returns:

    If Then
    Form 1040 is found in a Form 1040A or Form 1040EZ block, Edit Action Code "610" for non-remit returns or Action Code "611" for remit returns.
    Form 1040A or Form 1040EZ is found in a Form 1040 block, Convert entries to Form 1040 format and continue editing.
    Form 1040A is found in a Form 1040EZ block, or vice versa, Edit Action Code "610" for non-remit returns or Action code "611" for remit returns.
    If a prior year return is found in a current year block, Process the return using the prior year instructions in IRM 3.11.3.64.
    Form not in the 1040 series is found in a Form 1040 block, Refer the return to your work leader.

    Note:

    When editing either Action Code "610" or "611" , attach Form 4227 with an explanation of the action needed.

3.11.3.6.2.16  (01-01-2016)
Misfiled Return

  1. A misfiled return is a Form 1040, Form 1040A or Form 1040EZ filed instead of the correct Business Master File (BMF) Form.

  2. Route Form 1040, Form 1040A or Form 1040EZ with any indication of Limited Liability Corporation (LLC) in the caption or signature areas to Entity for research.

    Note:

    If the return has already been cleared through Entity, the phrase "Cleared by Entity" will appear on the return.

  3. Send Form 1040, Form 1040A or Form 1040EZ back to the taxpayer if the return meets any of the following criteria:

    • Business entity with an EIN

    • Business entity missing a TIN

    • Individual Master File (IMF) caption with an EIN

    • Individual and business names in the caption area with an EIN.

3.11.3.6.2.17  (01-01-2016)
Reinput Return

  1. Return the block to Receipt and Control when Form 3893, Re-Entry Document Control, is not attached to a block of reinput returns.

  2. Take the following actions when processing reinput returns:

    1. Delete any unnecessary Action Codes.

    2. Delete any incorrect codes and edit marks.

    3. "X" any purple or blue corrections and re-edit them in red when the marks were made to correct erroneous Code & Edit marks.

    4. Do not delete the original TE number or re-stamp the document with your TE number.

    5. Follow the special editing instructions under "Remarks" on the Form 3893 (See Figure 3.11.3-7).

    6. Move the Form 3893 to the back of the document, except for the first return, on all blocks with duplicate DLNs.

      Reminder:

      Edit a new 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

    This image is too large to be displayed in the current screen. Please click the link to view the image.
  3. Use the following instructions when editing a received date from the DLN on either a current or prior year reinput return.

    If the reinput return was originally numbered as a Then
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Non-remittance return, Edit the received date by using the calendar date indicated by the original DLN, minus 10 days.

    Note:

    Remittance returns are identified by either a DLN or a branded (i.e., underlined) money amount in the balance due area of the return.

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Also see the received date instructions in IRM 3.11.3.8.2 for additional information on received date editing.

  5. Edit Action Code "640" when required information is missing. Also attach Form 4227 indicating "Void to Originator" and the reason (e.g., "Missing Schedule A" ). Do not correspond.

    Exception:

    Do not input Action Code "640" or route to originator if prior correspondence has been issued and no reply has been received. Follow normal "no reply" procedures.

  6. Edit Unallowable Code "79" when the document is being reinput to release credit.

  7. If Box 15 on Form 3893 directs you to process the return as a non-remit:

    1. Delete all green or blue marks underlining money amounts.

    2. Delete all green or blue written money amounts.

3.11.3.6.2.18  (01-01-2016)
Returns Secured by Collection

  1. A TC59X–XX or notation of Integrated Collection System ("ICS" ) is entered by Collection in the upper-left margin of Form 1040, Form 1040A or Form 1040EZ on secured returns.

    Exception:

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

    Note:

    Do not research for TC 150 on Secured Returns.

  2. Do not correspond or research for Forms W-2 on secured returns.

    Note:

    This includes support for EIC when wages are present or excess Social Security Tax (SST) is present. Do not correspond for original or photocopied signature if "Process as Original" is present on the return.

  3. Do not refer unprocessable returns secured by Collection to the Collection unit, including those returns with CP 515 or CP 518 attached with notation of "For Signature Purposes" present.

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

  5. Route a secured return with missing signature back to the originating Collection function unless "Process as Original" or "PAO" is present on the return.

3.11.3.6.2.19  (01-01-2016)
Short Period Return

  1. Taxpayers are allowed to file a return for fewer than 12 months only under one of the following conditions:

    1. An application or authority to file a short period return has been approved by the IRS (Form 1128).

    2. The return is filed under Treas. Reg. Section 1.443-1

    3. The return is filed under Section 1398 (Bankruptcy) Election or Second Short Year after Section 1398 Election.

    4. The taxpayer died during the current processing year and is filing to date of death. (See the decedent return editing instructions in IRM 3.11.3.10).

    5. The return is the final return for the taxpayer.

  2. Correspond for an explanation of the taxpayer's authority to file a short period return when none of the conditions in (1) above apply.

    1. Complete Form 3531/6001, using fill-in "4" , per Exhibit 3.11.3-17.

    2. Edit Action Code "211."

  3. Only Form 1040 may be filed as a short period return. Convert Form 1040A or Form 1040EZ to Form 1040. See IRM 3.11.3.63 for instructions on converting returns.

  4. Short Period returns require the following additional editing:

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

    2. Edit the ending date of the tax period, using "YYMM" format.

    3. Edit the received date when one is not already present.

  5. Determine the number of quarters covered by the short period return when Schedule SE is attached. The Self Employment (SE) Quarters Covered Code is edited on Schedule SE based on the number of quarters reported on the short period return. Use the following information to determine the number of quarters covered:

    1. A fraction of a quarter counts as a full quarter.

    2. The quarters begin in January, April, July, and October.

  6. Edit the SE Quarters Covered Code in the margin to the right of line 4 in the section used Section A or Section B of Schedule SE. Code the SE quarters covered as follows:

    • Code "1" for one quarter.

    • Code "2" for two quarters.

    • Code "3" for three quarters.

    Note:

    Do not code for four quarters.

3.11.3.6.2.20  (01-01-2016)
Substitute for Return (SFR)

  1. An SFR return is prepared by Examination, Collection, or the Automated SFR (ASFR) function.

  2. Do not correspond with the taxpayer for missing information - including signature - on an SFR return. Instead, prepare Form 4227 to route the SFR return to the originating function when any of the following information is missing:

    • Filing status

    • Name(s)

    • TIN(s)

  3. Edit RPC "L" when there are no significant T-line entries on:

    • Lines 7 through 79 of Form 1040

    • Lines 7 through 51 of Form 1040A

    • Lines 1 through 14 of Form 1040EZ

    Note:

    Do not edit CCC "B" when RPC "L" has been edited.

  4. Take the following actions when an SFR return has the words "Possessor of Certain Cash" written on it:

    1. Edit the tax period if other than 1512.

    2. Process the return with a temporary TIN and route the return to Entity using Form 4227 for the assignment of the TIN.

    3. Edit "Possessor of Certain Cash" as the AIL.

  5. Edit an SFR return that has either "IRP" or "RTF" written on it as follows:

    1. Edit the tax period if other than 1512.

    2. Edit today's date as the received date.

    3. Edit CCC "3" and CCC "B" .

  6. Do not refer SFR returns without significant entries for statute clearing. Instead, edit RPC "L" and RPC "K" .

3.11.3.6.2.20.1  (01-01-2016)
Automated Substitute for Return (ASFR)

  1. Route ASFR returns to the Collections unit referenced in the attached Letter 2566, Letter 3219, or pink Form 3531, if present. If ASFR is notated at the top of the return or an ASFR date stamp is present as the only indication, route the return to Austin or Fresno Submission Processing Centers (FSPC) at the addresses shown below.

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

    • FSPC, 5045 E. Butler, Stop 81304, Fresno, CA 93727-5136

    Note:

    AUSPC and FSPC route to Collection unless there is an indication Collection has already cleared the return.

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

3.11.3.6.2.21  (01-01-2016)
52-53 Week Return

  1. This is the only type of return that may have a tax period ending prior to the last day of a month.

  2. Use the following table to determine the correct tax period for a 52-53 week return.

    If Then
    Within the first half of the month, Edit the previous month as the end of the tax period.
    Within the second half of the month, Edit that month as the end of the tax period.

3.11.3.6.2.22  (01-01-2016)
Blind Trust Returns

  1. Taxpayers who are presidential appointees are permitted to file their individual tax returns through a trustee of a blind trust.

  2. If there is any indication on the return or an attachment, a General Power of Attorney, or Form 2848 attached that indicates "Blind Trust" , see IRM 3.28.3.3.

  3. The POA, Form 2848 must be processed to the CAF to reflect the Blind Trust Indicator on Master File to ensure that no correspondence is generated to the taxpayer.

3.11.3.7  (01-01-2016)
Tax Period

  1. These instructions for tax period editing include:

    • General instructions

    • Current calendar year returns

    • Fiscal year returns

    • Prior year returns

    • Early filed returns

3.11.3.7.1  (01-01-2016)
Tax Period, General Instructions

  1. The tax period is indicated at the top of the form above the name area and/or the TIN blocks.

  2. Consider all returns to be current calendar year (i.e., 1512) returns, unless otherwise indicated.

  3. Edit tax periods other than the current calendar year to the right of the preprinted tax year in "YYMM" format (e.g., "1603" ). (See Figure 3.11.3-8).

  4. Edit a received date if not already present on all returns other than a timely filed current calendar year (1512) return. See the instructions for received date editing in IRM 3.11.3.8.

  5. Current year returns include:

    1. Form 1040 - Tax period cannot end earlier than 1512 (December 2015) or later than current year and month

    2. Form 1040A or Form 1040EZ - 1512 tax period only

    Figure 3.11.3-8

    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.11.3.7.2  (01-01-2016)
Current Calendar Year Return

  1. Process the return as a current calendar year return when the tax form is for a prior year, but the Form(s) W-2 is for the current calendar year. Mark out the line numbers on the prior year forms/schedules and edit current year T-line numbers. Edit tax period to current year.

    Exception:

    Convert to a current year form or use a conversion sheet (Form 6114, Prior Year and Conversion Form 1040) if marking out the line numbers would make transcription more difficult.

  2. 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.

  3. Number T-lines with entries when line numbers are missing.

3.11.3.7.3  (01-01-2016)
Fiscal Year Return

  1. A fiscal year is twelve full months ending on the last day of any month other than December.

    1. Edit the tax period in YYMM format.

    2. Edit the received date when one is not already present.

  2. Edit Action Code "355" when the ending date of the tax period is after the current date except for decedent returns.

    Note:

    See IRM 3.11.3.10.6 for information on short-period decedent returns.

3.11.3.7.4  (01-01-2016)
Prior Year Return

  1. For purposes of Code & Edit, the statute of limitations for refunds and the assessment of tax on Form 1040, Form 1040A or Form 1040EZ returns generally expires three years after the return due date if the return is timely filed. A return in jeopardy of the expiration of the statute must receive expedited handling to ensure that it is processed before the expiration of the statute. Consider a return to be a potential statute protection case when both of the following conditions apply:

    1. Today's date is within 90 days of the expiration of the statute of limitations.

    2. The return has not been cleared by the Statute Protection Unit.

    Example:

    The statute of limitations will expire on April 18, 2016, for tax period 1212 returns. A 1212 return which has not been cleared by the Statute Protection Unit is a potential statute protection case beginning on January 18, 2016, (i.e., 90 days before the expiration of the statute).

  2. Immediately take all potential statute protection cases to your work leader.

  3. 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. Refer to the line-by-line instructions for prior year editing in IRM 3.11.3.64 for additional information.

3.11.3.7.5  (01-01-2016)
Early Filed Return

  1. If a return reflects a future tax year, take the following actions:

    • Edit tax period in YYMM format.

    • Edit the Received Date when one is not present.

    • Edit Action Code "480" .

3.11.3.8  (01-01-2016)
Received Dates

  1. The received date is the date that a return was received by the IRS.

  2. Information and instructions about received dates included in this subsection of the manual include:

    • General instructions

    • Timely received dates

    • Determining the received date

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Late-filed returns

    • Extensions

    • Reasonable cause criteria

3.11.3.8.1  (01-01-2016)
Received Dates, General Instructions

  1. A received date is always required when the return is:

    • Amended

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

    • For a fiscal year, prior year, or short year

    • Early-filed for a decedent (filed before the close of the current year)

    • Processed after June 3, or the Julian date in the DLN is 155 or later (156 or later in leap years)

      Note:

      Leap years are 2016, 2020, etc..

    Exception:

    See IRM 3.11.3.8.5(3) Exception Note.

  2. Circle a received date when it is present on a return that does not need one. See Figure # 3.11.3-9 #.

  3. 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, 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).

  4. If a received date is "X" -ed, circle that received date stamp.

  5. Edit the received date in "MMDDYY" format when it is required but not already present. MMDDYY format is Month Month Day Day Year Year. For example, April 23, 2016, when edited in MMDDYY format is "042316" .

  6. Edit the received date on the front of the return in the following locations:

    1. Form 1040 to the right of line 6d

    2. Form 1040A to the right of line 6d

    3. Form 1040EZ to the left of line 6

    Note:

    If a return contains a valid received date on any page other than the front of the return or in the caption area, circle the received date and edit the same received date as instructed above.

  7. Perfect the received date when it is required and not legible and in complete MMDDYY format.

    Figure 3.11.3-9

3.11.3.8.2  (01-01-2016)
Determining the Received Dates

  1. Determine the received date in the following priority when it is required and there is no valid date stamp or handwritten received date:

    1. Latest postmark on the envelope or latest date from a private delivery service mark. (See Figure 3.11.3-10).

      Note:

      When the envelope certified mail receipt is not attached, use the postmark date stamped or handwritten on the return to determine the received date.

    2. Service Center Automated Mail Processing System (SCAMPS) digital dates.

    3. Latest date by the taxpayer's signature(s). (See Figure 3.11.3-10).

      Exception:

      Use the signature date on prior year returns only when it is signed this year. Do not use the signature date to determine the received date for replies to correspondence.

    4. Julian date minus 10 days in the DLN.

    5. Today's date minus 10 days.

    Exception:

    See the instructions in IRM 3.11.3.6.2.17 when determining the received date for a reinput return.

  2. If the stamped received date on a current year return is three months or more prior to the current date, search the return for an indication the received date is incorrect (e.g., a postmark date or signature date after the received date). If the received date is determined to be incorrect, delete it and edit a new received date following the instructions at IRM 3.11.3.8.2(1).

  3. Always review each return for the words, "Returned for Signature" or similar statement and a date present in the lower left corner of the return. These are returns that were originally received missing a signature and were mailed back to the taxpayer. If a date and the notation "Returned for Signature" or similar statement is present, refer to the following instructions for editing the received date:

    1. If the return is Balance Due and a received date is present showing a date within 30 days after the date present in the lower left corner, use the date sent back for signature as the received date. Use the most recent mail-back date when multiple dates are present. Delete any later received date(s) that may be present. See Figure 3.11.3-11.

    2. If the return is Balance Due and a received date is present showing a date more than 30 days after the date present in the lower left corner, honor the latest received date. Delete any earlier received date(s) that may be present.

    3. If the return is a Refund, Credit Elect or Zero balance return, honor the latest received date. Delete any earlier received date(s) that may be present.

      Exception:

      For Statute Returns only: if a received date is present showing a date within 30 days after the date present in the lower left corner, circle out the latest received date and keep the earlier received date.

      Reminder:

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

    Figure 3.11.3-10

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Figure 3.11.3-11

    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.11.3.8.2.1  (01-01-2016)
Types of Received Dates

  1. Accept these three types of received dates:

    • IRS campus date stamp with the word "received" - to include Accounts Management, ACSS, Collections, or other valid IRS organizations

      Note:

      A received date edited or stamped by the Taxpayer Advocate Service (TAS) is not a valid IRS received date.

    • IRS area/territory office date stamp

    • Valid handwritten received date

  2. To be valid, the handwritten received date must include both of the following:

    1. The word "Received" or any abbreviations of the word received and a date.

    2. A signature with an abbreviated title such as "RO" , "RA" , "RR" , "OCR" , "TSR" , or "TSSP" on the front page of the return.

    Exception:

    A handwritten received date edited in the line 6d area of Form 1040 or Form 1040A (line 6 of Form 1040EZ) by an IRS employee in Submission Processing or IVO is valid. A clear indication that a handwritten received date has been edited by IVO will be the presence of SPC "B" and/or "IVO" noted or stamped in the upper left margin. Generally, the IVO - edited received date will be earlier than the original, stamped received date.

  3. When there is no valid date stamp and the handwritten 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

  1. Accept all valid post office marks whether United States Postal Service (USPS), foreign country postmarks, or USPS private meter marks.

  2. Valid Post Office marks are:

    • Postage Validation Imprinter (PVI) labels displaying the USPS eagle

    • Killer bar strips or other cancellation marks with a date, city, and state

    • USPS Metered postmarks

    • Private Metered Marks (identified by the absence of "USPS" in the postmark).

  3. Use the following chart to determine the correct editing when only a private meter postmark is present.

    If the document is Then
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.11.3.8.2.3  (01-01-2016)
Private Delivery Service (PDS) Marks

  1. A private delivery service (PDS) is a business which delivers mail or packages within an agreed upon schedule (e.g. overnight or same day delivery). The "timely mailing treated as timely filing" rule now applies to some PDSs. When the rule applies to a PDS, it is referred to as a "designated" PDS.

  2. Do not use marks from a non-designated PDS to determine whether a return is timely filed. The "timely mailing treated as timely filing" rule applies only to the USPS and to designated PDSs.

  3. Accept all designated PDS marks. The only designated delivery services are listed below:

    1. United Parcel Service ()
      • UPS Next Day Air Early AM
      • UPS Next Day Air
      • UPS Next Day Air Saver
      • UPS Second Day Air
      • UPS Second Day Air A.M.
      • UPS Worldwide Express
      • UPS Worldwide Express Plus

    2. Federal Express (FedEx)
      • Fed Ex First Overnight
      • Fed Ex Priority Overnight
      • Fed Ex Standard Overnight
      • Fed Ex Two Day
      • Fed Ex International Next Flight Out
      • Fed Ex International Priority
      • Fed Ex International First
      • Fed Ex International Economy

      Note:

      Do not use "FedEx Powership 3" labels for determining the mail date. See Figure 3.11.3-12.

  4. Use the instructions in IRM 3.11.3.8.2 for determining the date a return was received whether the mail marks are from a designated or non-designated PDS.

    Figure 3.11.3-12

    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.11.3.8.3  (01-01-2016)
Timely Filed Returns

  1. For 2016, a current-year return is a return filed for tax year 2015. A current calendar-year return (1512) is considered to be timely filed when it is mailed on or before the due date of April 18, 2016.

    Exception:

    Taxpayers who live in Maine (ME) or Massachusetts (MA) have until April 19, 2016, to timely file.

  2. Any return-other than a current calendar-year timely-filed return-always requires a received date.

  3. Generally, a current calendar-year (1512) return received on or before April 18, 2016, does not require a received date.

  4. For current calendar-year (1512) other than full paid return , received on or before April 18, 2016:

    If the document is Then
    Unnumbered and being processed before June 4, 2016, Circle the received date when present.

    Exception:

    NEVER circle a received date that has been edited in green ink.

    Numbered with a DLN Julian date of 154 or earlier (155 or earlier in leap years), Circle the received date when present.

    Exception:

    NEVER circle a received date that has been edited in green ink.

    Unnumbered and being processed on June 4, 2016, or later, Edit "041816" as the received date if one is not present.
    Numbered with a DLN Julian date of 155 or later (156 or later in leap years), Edit "041816" as the received date if one is not present.

    Note:

    Leap years are 2016, 2020, etc..

3.11.3.8.4  (01-01-2016)
"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "

  1. By law, a timely-mailed return is a timely-filed return. This applies to both USPS and designated PDS mail.

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

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

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. For current calendar-year (1512), other than full paid return , received during the grace period:

    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 "041816 " .
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Circle the received date. Edit a received date of "041816" .

    Note:

    Leap years are 2016, 2020, etc..

    Exception:

    If penalties or interest are indicated by Examination or Collection and the return is part- or full-paid, then edit a received date of "041816 " and prepare Form 3471. See IRM 3.11.3.3.5.1 for additional information and instructions. Use the instructions in IRM 3.11.3.14.8.5 when penalty and interest amounts are entered by the taxpayer.

3.11.3.8.5  (01-01-2016)
Late Filed Returns

  1. A return is delinquent when it is filed after the due date without an approved extension.

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

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

  3. When the received date on a current calendar-year (1512) return ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ " or later), examine the envelope and:

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

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

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

    Exception:

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

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

    Note:

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

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

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

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

    Note:

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

    ≡ ≡ ≡

    Exception:

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

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.11.3.8.6  (01-01-2016)
Extensions

  1. Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, may be filed to extend the due date for filing an individual tax return until October 17, 2016.

  2. Extension forms are not required to be attached to the return when filed.

  3. Take one of the following actions when an original Form 4868 is attached to a return:

    If the Form 4868 is Then
    Not for the Form 1040, Form 1040A or Form 1040EZ 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, Form 1040A or Form 1040EZ to which it is attached, Leave the form attached to the return.
  4. Edit CCC "R" on returns received after April 18th when Form 4868 or Form 6401 is attached and an ITIN or IRSN is present in the primary Social Security Number (SSN) field. Both Individual Tax Identification Numbers (ITINs) and Internal Revenue Service Numbers (IRSNs) begin with the digit "9" .

    Note:

    Delete CCC "N" if it has been edited. CCC "N" is only valid on returns as outlined at IRM 3.11.3.8.7(3).

  5. Examine the envelope postmark date. If the received date is "≡ ≡ ≡ ≡ ≡ ≡ " or later, and the postmark date or designated PDS mark date is on or before October 17, 2016, edit the postmark date as the received date.

    Exception:

    Edit a timely received date on the return when the taxpayer explains that the return is late due to the rejection of a timely-filed electronic return. Postmark date must be within 10 calendar days of notification from the Service that the electronic portion of the return has been rejected or cannot be accepted for processing. (Rev. Proc. 2007-40 and Publication 1345).

  6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Use the instructions in IRM 3.11.3.3.5.1 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 3.11.3.14.8.5 when penalty and interest amounts are entered by the taxpayer.

3.11.3.8.7  (01-01-2016)
Reasonable Cause

  1. Taxpayers are liable for delinquency penalties and interest on the unpaid taxes on returns received after the due date. However, penalties for late filing, or late payment, may be excused when the taxpayer has a reasonable cause for the delay. See Exhibit 3.11.3-8 for examples of reasonable cause.

    Note:

    Reasonable cause does not excuse penalties for failure to make estimated (ES tax) payments properly unless the taxpayer retired after reaching age 62 or became disabled during the tax year or the prior tax year. See Exhibit 3.11.3-8.

  2. Failure to make estimated (ES tax) payments generally can not be waived due to reasonable cause. See IRM 3.11.3.14.8.5 for waivers of the estimated tax penalty.

  3. Edit CCC "N" on a return that qualifies the taxpayer for a special extension when the received date is later than the ≡ ≡ ≡ ≡ ≡ ≡ and there is an indication (on the return or an attachment) of any of the following:

    • Indication the taxpayer lives outside the U.S. and Puerto Rico and main place of work is outside the U.S. and Puerto Rico

    • Indication the taxpayer is on military or naval duty outside of the U.S. and Puerto Rico

    • APO/FPO/DPO address

    Note:

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

    Note:

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

  4. When the taxpayer's reasonable cause statement is not acceptable:

    1. Edit CCC "7" .

    2. Correspond using Letter 854C (Penalty Waiver or Abatement Disallowed/Appeals Procedure Explained), paragraph D.

    Note:

    See the correspondence instructions in IRM 3.11.3.5.

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

    If the reasonable cause is for Then
    Late filing, Edit CCC "R" , unless CCC "N" has been edited.
    Late payment or a "Section 6020(b)" notation is present, Edit CCC "M" .

3.11.3.9  (01-01-2016)
Taxpayer Identification

  1. Instructions and information in this subsection of the manual include:

    • General caption information

    • Caption editing

    • Taxpayer identification number

    • Name and additional information lines

    • Mailing address

3.11.3.9.1  (01-01-2016)
Caption, General Information

  1. Some instructions for caption editing refer to "name control" . The first four characters of the primary taxpayer's last name is the name control. Refer to the Name Control Job Aid 2303 or Document 7071 if name control editing is required.

  2. Caption information can be printed, typed, or handwritten directly on the return . (See Figure 3.11.3-13)

  3. References to the Taxpayer Identification Number (TIN) include Social Security Numbers (SSN), Individual Taxpayer Identification numbers (ITIN), Internal Revenue Service Numbers (IRSN), and Adoption Taxpayer Identification Numbers (ATIN).

    Note:

    An ITIN is a unique nine-digit number assigned by the IRS to individuals who must file a U.S. tax return, or are listed as a spouse or a dependent but do not have and cannot obtain a valid SSN. Taxpayers obtain an ITIN by filing Form W-7.

    Note:

    An IRSN is a temporary number assigned to taxpayers for processing purposes only. They are not valid for subsequent years.

  4. Required caption information includes:

    • Primary taxpayer identification number (P-TIN)

    • Secondary taxpayer identification number (S-TIN)

    • Name

    • Additional information line, when required

    • Mailing address

    • City and State

    • ZIP Code

    Figure 3.11.3-13

    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.11.3.9.2  (01-01-2016)
Caption Editing

  1. Ensure that the S-TIN and name is present in the caption on FS 2 returns. Also ensure that FS 3 and FS 6 returns have the S-TIN included in the caption.

    Note:

    Edit the S-TIN from attachments when missing.

    Exception:

    For FS 2 returns only, if the secondary taxpayer's name is missing or illegible and the primary taxpayer's name is present and it can be clearly determined from the signature lines or attachments that the last names are the same, accept the primary taxpayer's name for both taxpayers.

  2. Edit to the caption area any change or addition to caption information made by the taxpayer on an attachment or on the return outside of the caption area. (See Figure 3.11.3-14)

    Exception:

    See IRM 3.11.3.9.2.3 for instructions for perfecting a mailing address.

    Figure 3.11.3-14
    This image is too large to be displayed in the current screen. Please click the link to view the image.
  3. Search the return and attachments for any missing caption information and perfect the caption if all missing information is found. See IRM 3.11.3.9.2.3 for instructions for perfecting a mailing address.

  4. Take the following actions if any required caption information is missing and cannot be perfected, see Figure 3.11.3-15:

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

      Exception:

      Do not underline the name control when the TIN only is missing from the caption .

      Exception:

      Do not underline name control when correspondence is necessary. Perfect caption information from envelope or through research.

    2. Edit the P-TIN (if not present) in the caption area.

    Figure 3.11.3-15

    This image is too large to be displayed in the current screen. Please click the link to view the image.
  5. Do not re-edit green edit markings in the entity area unless the editing is incorrect.

  6. Do not change the name control when it has been edited in red by; Entity Unit, ITIN Operation, or RPS employees. Use the Entity/ITIN/ RPS- editing to perfect the:

    1. Name control for caption.

    2. TIN on attachments - Schedule C, Schedule C-EZ, Schedule H, Schedule SE and Form 4137, Form 5405, Form 8853, Form 8919 and Form 8941.

      Note:

      The name control for a newly assigned ITIN or IRSN may have been edited and underlined by the ITIN Operation or Entity Unit.

  7. Underline the Additional Information Line (AIL) (See IRM 3.11.3.9.2.2.2) when:

    1. Present on a return

    2. The taxpayer indicates information which should be added to the additional information line. Edit and underline the appropriate information .

  8. Delete "also known as" and "AKA" notations, as well as the name associated with the "AKA" when the taxpayer notates "also known as" or (" AKA" ) and included an additional name in the caption area of the return.

3.11.3.9.2.1  (01-01-2016)
Taxpayer Identification Number (TIN)

  1. The primary TIN (P-TIN) belongs to the taxpayer whose name appears first on the return. The secondary TIN (S-TIN) belongs to the spouse. The P-TIN must be in the "Your Social Security Number" block.

  2. Search the return for separate numbers when the P-TIN and S-TIN are the same. Delete the S-TIN if separate numbers are not found.

  3. There are different types of valid TINs:

    • IRS Individual Taxpayer Identification (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
    Example of an IRSN assigned from Austin: 9XX-18-XXXX.
  4. Circle any invalid (e.g., "999-99-9999" , "111-11-1111" ) or incomplete TIN which cannot be perfected, including all notations, (e.g., "NRA" , "SSA 205(c) " , "applied for, " "ITIN Reject," "No W-7" ).

  5. Perfect the TIN, if necessary, on any attached Schedule C, Schedule C-EZ, Schedule H, Schedule SE, Form 4137, Form 5405, Form 8853, Form 8863, Form 8919 and/or Form 8941.

  6. Stop editing the return and take the following actions when Form W-7 or Form W-7(SP) is attached to the Form 1040, Form 1040A or Form 1040EZ:

    1. Unnumbered:
      • Pull the return from the batch. Attach Form W-7 to the front of the return.
      • Edit the received date in "MMDDYY" format and route the entire return to Receipt and Control for transshipment to AUSPC.

    2. Complete Form 3696-A to generate Letter 86C. If the ITIN application (Form W-7 or Form W-7(SP)) is for the primary taxpayer, enter an asterisk (*) for the SSN on Form 3696-A. If the ITIN application is for a spouse or dependent, enter the primary TIN on Form 3696–A.

      Exception:

      AUSPC Only: Do not send Letter 86C. Follow local procedures to route both to the ITIN unit.

      Note:

      For numbered returns, edit Action Code "651" .

3.11.3.9.2.1.1  (01-01-2016)
Primary TIN (P-TIN)

  1. The P-TIN must be in the "Your Social Security Number" block.

  2. Arrow or edit the P-TIN in the proper block if it appears in the "Spouse's Social Security Number" block or elsewhere.

    Exception:

    It is not necessary to arrow or edit the P-TIN to the P-TIN area if the words "applied for" or similar statement is present in the P-TIN area and an ITIN has been edited to the left of the P-TIN area.

  3. If "ITIN Rejected" is present in the P-TIN field, route the return to Receipt and Control for rebatching.

  4. If the P-TIN is missing 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(s) W-2.

  5. Correspond for a missing P-TIN when corresponding for other missing return items.

    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  (01-01-2016)
Secondary TIN (S-TIN)

  1. Circle an S-TIN if it is present and the FS is "1" , "4" , "5" or "7" .

  2. Arrow or edit the S-TIN in the proper block if it appears in the caption area or elsewhere.

    Exception:

    It is not necessary to arrow or edit the S-TIN to the S-TIN area if the words "applied for" or similar statement is present in the S-TIN area and an ITIN has been edited to the left of the S-TIN area.

  3. Edit the S-TIN from the return or attachments if it is missing or incomplete, and the FS is "2" , "3" , or "6" . 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(s) W-2.

  4. Correspond for a missing S-TIN when corresponding for other missing return items, unless there is an indication of Amish or Mennonite, ITIN Rejected or "NRA" .

  5. Edit CCC "J" when the S-TIN is missing, the filing status is 2, 3, or 6 and there is an indication of Amish or Mennonite or "Form 4029" is notated.

3.11.3.9.2.2  (01-01-2016)
Name Line and Additional Information Line

  1. Each return processed must have a legible last name. Research following local procedures when the name is illegible and cannot be perfected.

  2. There are two lines available for taxpayer identification.

    1. The name line is for the first name, middle initial, and last name(s) of the primary and secondary (if present) taxpayer(s). This includes any suffix.

    2. The additional information line (AIL) is used to further identify the taxpayer. For example, additional name, address, or representative information may be shown.

3.11.3.9.2.2.1  (01-01-2016)
Name Line

  1. Refer to the Name Control Job Aid 2303 or Document 7071, Name Control Job Aid for Individual Master File (IMF) Taxpayers.

  2. Circle the spouse's name when there are two names in the name line, the FS is "1" , "3" , or "4" , and there is only one signature. Perfect the name line to agree with the signature. (e.g., If John signs the return, delete Mary's name from the caption).

  3. Edit the spouse's name from the signature line when all of the following conditions apply:

    • Only one name appears in the first name line.

    • The FS is "2" .

    • Both taxpayers have signed the return.

  4. Do not delete "DECD" or "MINOR" from the name line:

    If the return indicates that Then
    At least one of the taxpayers is deceased, Refer to IRM 3.11.3.10 for complete editing instructions for decedent returns.
    The taxpayer is a minor child, Refer to IRM 3.11.3.11.2.
  5. Circle the brackets and prior last name when a taxpayer places it in brackets and shows a new last name. (See Figure 3.11.3-16).

    Figure 3.11.3-16

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  6. The primary taxpayer's name will appear on the first line. The secondary taxpayer's name may appear on the first or second line.

  7. Do not separate the primary and secondary taxpayers' names onto different lines if they are both on the same line.

  8. Edit the name line as follows:

    If the taxpayer Then
    Uses a first initial but signs the return with a name,* Edit the name from the signature line to the name line. (See Figure 3.11.3-17)
    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.
    *Do not verify the name line with the signature area unless one of these two conditions apply.

    Figure 3.11.3-17

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    Figure 3.11.3-18

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3.11.3.9.2.2.2  (01-01-2016)
Additional Information Line (AIL)

  1. The additional information line may be found anywhere in the caption area.

  2. Edit and underline the AIL in the following priority:

    1. A fiduciary or taxpayer's representative's name with a title (See IRM 3.11.3.11). Taxpayer's representatives include:
      • Administrator (ADM)
      • Commissioner (COMM)
      • Conservator (CONS)
      • Custodian (CUST)
      • Executor/Executrix (EXEC)
      • Guardian (GDN)
      • Personal Representative (PER REP)
      • Trustee (TR)

    2. Name of a parent signing for their minor child.

  3. Underline the AIL (see Figure 3.11.3-19), when present in the caption area, in the following priority:

    1. A fiduciary or taxpayer representative name with a title (See IRM 3.11.3.11). Taxpayer representatives include:
      • Administrator (ADM)
      • Commissioner (COMM)
      • Conservator (CONS)
      • Custodian (CUST)
      • Executor/Executrix (EXEC)
      • Guardian (GDN)
      • Personal Representative (PER REP)
      • Trustee (TR)

    2. Name of a parent signing for their minor child.

    3. Name of a Power of Attorney (POA) (See Figure 3.11.3-20.)

    4. Name of a person not meeting the criteria listed in a, b, or c above (e.g., "in-care-of" information.)

    5. Street address, if not used as the mailing address.

      Note:

      Never underline or edit a P.O. Box as an AIL.

    6. Location other than a street address (e.g., bank, company name, university, or building name) not used as the mailing address. (See Figure 3.11.3-21.)

      Note:

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

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

    Figure 3.11.3-19

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    Figure 3.11.3-20

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    Figure 3.11.3-21

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3.11.3.9.2.3  (01-01-2016)
Mailing Address

  1. Edit military addresses to include organization, Postal Service Center, mobile unit designation, or name of ship.

  2. Underline or edit the name control when there is no street address (for example, 4116 Grant Ave) or P.O. Box present in the caption. (See Figure 3.11.3-15 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.

  3. When a street address in the caption is incomplete (such as a number without a street name or a street name without a number), and a complete address that matches the caption is found on an attachment, perfect the street address. If the street address cannot be perfected, underline or edit the name control. (See Figure 3.11.3-22.)

  4. Search the attachments when a complete street address is present in the caption, but the city/state/ZIP is missing or incomplete. If the street address in the caption matches one found on an attachment, use the attachment to perfect the city/state/ZIP. (See Figure 3.11.3-23.)

  5. If you are unable to perfect a missing or partial city/state/ZIP Code, underline the name control.

    Note:

    If only the ZIP Code is missing, refer to IRM 3.11.3.9.2.5.

    Exception:

    If correspondence is required, perfect address from an attached envelope. If unable to perfect from an attached envelope, research for the address.

  6. Refer to the international return instructions in IRM 3.11.3.6.2.13 when the return has a foreign address.

    Figure 3.11.3-22

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    Figure 3.11.3-23

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