3.11.249 Processing Form 8752

Manual Transmittal

October 30, 2018

Purpose

(1) This transmits revised IRM 3.11.249, Returns and Documents Analysis, Processing Form 8752.

Material Changes

(1) Minor editorial changes have been made throughout this IRM (e.g., line number updates, spelling, punctuation, unspan cells, links, etc.). Other significant changes to this IRM are shown below.

(2) IRM 3.11.249.1.1(1) - Added additional background information.

(3) IRM 3.11.249.1.1(2) - Added additional background information.

(4) IRM 3.11.249.2.6(1) - Reworded for clarity per IRM feedback from Internal Management Document (IMD) reviewer.

(5) IRM 3.11.249.2.6(2) - Removed restriction in the Note per IRM 3.21.110 feedback from Privacy, Governmental Liaison and Disclosure (PGLD).

(6) IRM 3.11.249.2.7(2) f. - Reworded for clarity per IRM feedback from Internal Management Document (IMD) reviewer.

(7) IRM 3.11.249.2.7(4) - Corrected IRM reference per latest IRM 11.3.1, Disclosure of Official Information, Introduction to Disclosure, revision.

(8) IRM 3.11.249.2.8 - Reworded per Criminal Investigation (CI) coordinated efforts with Business Master File (BMF). (IPU 18U0058 issued 01-04-2018)

(9) IRM 3.11.249.2.8(3) - Restricted amount to match consistency template.

(10) IRM 3.11.249.2.8(3) - Added Kansas City Submission Processing Campus (KCSPC) per Paper Returns Processing Changes for 2018 memo from the Director of Submission Processing dated June 20, 2017.

(11) IRM 3.11.249.2.8(5) - Added Kansas City Submission Processing Campus (KCSPC) per Paper Returns Processing Changes for 2018 memo from the Director of Submission Processing dated June 20, 2017.

(12) IRM 3.11.249.3.2.1(3) - Updated the Seven Parts of the Document Locator Number (DLN) information.

(13) IRM 3.11.249.5.1(2) - Routing Guide for Attachments Table - Form 2848 - Action column - Added Kansas City Submission Processing Campus (KCSPC) per Paper Returns Processing Changes for 2018 memo from the Director of Submission Processing dated June 20, 2017.

(14) IRM 3.11.249.5.1(2) - Routing Guide for Attachments Table - Form 2848 - Corrected the address. (IPU 18U0058 issued 01-04-2018)

(15) IRM 3.11.249.5.1(2) - Routing Guide for Attachments Table - Form 8821 - Action column - Added Kansas City Submission Processing Campus (KCSPC) per Paper Returns Processing Changes for 2018 memo from the Director of Submission Processing dated June 20, 2017.

(16) IRM 3.11.249.5.1(2) - Routing Guide for Attachments Table - Form 8821 - Corrected the address. (IPU 18U0058 issued 01-04-2018)

(17) IRM 3.11.249.5.1(2) - Routing Guide for Attachments Table - Form 8822 - Reworded for clarity per IRM feedback from Internal Management Document (IMD) reviewer.

(18) IRM 3.11.249.5.2(3) - Reworded for clarity per IRM feedback from Internal Management Document (IMD) reviewer.

(19) IRM 3.11.249.6.2(4) - Added list of letters for corresponding.

(20) IRM 3.11.249.6.4(1) - Removed incorrect information.

(21) IRM 3.11.249.6.4(5) - Corrected IRM reference per latest IRM 11.3.1, Disclosure of Official Information, Introduction to Disclosure, revision.

(22) IRM 3.11.249.7.1(1) - Removed Form 4227 per IRM feedback.

(23) IRM 3.11.249.8.1(3) - Reworded for clarity per IRM 3.11.249 feedback from Course Development reviewer.

(24) IRM 3.11.249.9.2(6) c. Note - Changed IRM 1.15.29 to Document 12990 per feedback from Senior Records Analyst. (IPU 18U0703 issued 04-24-2018)

(25) IRM 3.11.249.10.4(2) - Reworded for clarity per IRM feedback from Internal Management Document (IMD) reviewer.

(26) IRM 3.11.249.10.5(3) Table - Reworded for clarity per IRM feedback from Internal Management Document (IMD) reviewer.

(27) IRM 3.11.249.10.6(3) - Added title to Letter 86C.

(28) IRM 3.11.249.10.6(4) - Reworded for clarity per IRM feedback from Internal Management Document (IMD) reviewer.

(29) IRM 3.11.249.10.6(5) c. - Corrected the title of the Foreign Address Job Aid to Coding and Editing BMF Tax Returns, Foreign Addresses Job Aid (Number 2324-002).

(30) IRM 3.11.249.10.6(5) d. - Added a Note about Coding and Editing BMF Tax Returns, Foreign Addresses Job Aid (Number 2324-002).

(31) IRM 3.11.249.10.7(1) - Reworded for clarity per IRM feedback from Internal Management Document (IMD) reviewer.

(32) IRM 3.11.249.10.8(3) Example - Updated tax year information.

(33) IRM 3.11.249.10.8(4) - Updated prior year tax information.

(34) IRM 3.11.249.11(2) - Removed Note below the If/Then Table per IRM feedback.

(35) IRM 3.11.249.14(1) b. - Reworded for clarity per IRM feedback from Internal Management Document (IMD) reviewer.

(36) IRM 3.11.249.15(2) - Reworded for clarity per IRM feedback from Internal Management Document (IMD) reviewer.

(37) IRM 3.11.249.15.3(9) - Added IRM reference title.

(38) IRM 3.11.249.15.10(3) - Reworded for clarity per IRM feedback from Internal Management Document (IMD) reviewer.

(39) IRM 3.11.249.16(1) - Reworded for clarity per IRM feedback from Internal Management Document (IMD) reviewer.

(40) IRM 3.11.249.16.3(1) b. - Added IRM reference title.

(41) IRM 3.11.249.16.4(1) - Added Kansas City Submission Processing Campus (KCSPC) per Paper Returns Processing Changes for 2018 memo from the Director of Submission Processing dated June 20, 2017.

(42) Exhibit 3.11.249-3 - Zero Returns - Removed restriction in the Note per IRM 3.21.110 feedback from Privacy, Governmental Liaison and Disclosure (PGLD).

(43) IRM references updated throughout the IRM.

(44) Figures revised throughout the IRM.

(45) Exhibits revised throughout the IRM.

Effect on Other Documents

IRM 3.11.249, Returns and Documents Analysis, Processing Form 8752, dated November 11, 2017 (effective January 01, 2018), is superseded. The following IRM Procedural Updates (IPUs), issued from January 04, 2018, through April 24, 2018, have been incorporated into this IRM: 18U0058 (issued 01-04-2018) and 18U0703 (issued 04-24-2018).

Audience

Wage and Investment (W&I) Submission Processing (SP) Code and Edit (C&E) personnel are the intended audience for this IRM.

Effective Date

(01-01-2019)

Linda J. Brown
Director, Submission Processing
Wage and Investment Division

Program Scope and Objectives

  1. This section contains instructions for Form 8752, Required Payment or Refund Under Section 7519.

  2. Purpose: This section provides instructions for Document Perfection Operation (DPO) Code and Edit (C&E) for coding and editing (perfecting) returns and other documents.

  3. Audience: These procedures apply to Wage and Investment (W&I) Submission Processing (SP) Code and Edit personnel:

    • Supervisory Tax Technician

    • Lead Tax Technician

    • Tax Examining Technician

    • Supervisory Clerk

    • Lead Clerk

    • Clerk

  4. Policy Owner: Director, Submission Processing

  5. Program Owner: Paper Processing Branch, Business Master File (BMF) Section

  6. Primary Stakeholders: Other areas that may be affected by these procedures include (but not limited to):

    • Accounts Management (AM)

    • Chief Counsel

    • Compliance

    • Information Technology (IT) Programmers

    • Large Business and International (LB&I)

    • Small Business Self-Employed (SBSE)

    • Submission Processing (SP)

    • Taxpayer Advocate Service (TAS)

Background

  1. Document Perfection codes and edits (perfects) returns and other documents for input to Master File (MF) through the Integrated Submission and Remittance Processing System (ISRP) and the Service Center Recognition Image Processing System (SCRIPS).

  2. Document Perfection forwards any other documents and attachments not related to the processing of the returns to the function responsible for handling them.

  3. It is not the purpose of Code and Edit to mathematically verify or to check the validity of the returns and other documents being processed unless otherwise specified in the applicable section.

Authority

  1. Authority for these procedures is found in Internal Revenue Code Section 7519 and corresponding Treasury Regulations.

Responsibilities

  1. The Campus Director is responsible for monitoring operational performance for the Submission Processing campus.

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

  3. The Team Manager/Lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.

  4. The Team Employees are responsible for following the instructions contained in this IRM and maintain updated IRM procedures.

Program Management and Review

  1. Program Goals: Ensure documents are code and edit ready for transcription.

  2. Program Reports: The Batch Block Tracking System (BBTS) captures and stores a vast amount of data, which can be used in performance monitoring and production projections.

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

    • Embedded Quality Submission Processing (EQSP)

    • Balanced Measures

    • Managerial Reviews

  4. Annual Review: The processes outlined in this IRM should be reviewed annually to ensure accuracy and promote consistent tax administration.

Program Controls

  1. Quality Review conducts a statistical valid sample size review of completed work to ensure IRM guidelines are followed.

Terms/Definitions/Acronyms

  1. The table lists Interpretation Words and their definitions.

    Interpretation Words

    Word Definition Example of using a word that is open to interpretation

    Note:

    This column is for illustration purposes only.

    Fair Provide accurate and professional service to all persons without regard to personal bias. Per the Taxpayer Bill of Rights (TBOR), taxpayers have the right to expect a fair and just tax system which provides taxpayers with the opportunity to have their facts and circumstances considered when it might affect their underlying liabilities, ability to pay, or ability to provide information timely.
    Timely Provide the time frame to consider what is or is not timely. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service (TAS) if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through normal channels.

     

  2. See Exhibit 3.11.249-2, Acronyms and Abbreviations, for a list of commonly used acronyms and abbreviations.

Related Resources

  1. The following resources may assist in performing the work as outlined in this IRM.

    • Servicewide Electronic Research Program (SERP)

    • Integrated Data Retrieval System (IDRS)

General Information

  1. This section provides general background information about the scope, the forms processed, and the nature of the work which Document Perfection personnel are expected to perform on those returns and documents.

  2. This IRM can’t address every possibility that may arise while coding and editing returns or documents. Taxpayer intent must be taken into consideration. In some cases, it may be necessary to refer the issue to your Subject Matter Expert (SME), lead or manager to determine the proper action.

Purpose of this Section

  1. The instructions in this section pertain to the coding and editing of Form 8752, Required Payment or Refund Under Section 7519, that will be input to the Business Master File (BMF).

  2. General instructions are provided to eliminate the repetition of the same instructions for the specific return. If there is a conflict between the general instructions and the specific instructions, the specific instructions will prevail.

  3. This manual is your main source of information. You can also find procedures in the following IRMs:

    • IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates

    • IRM 3.10.72, Extracting, Sorting, and Numbering

  4. IRM 3.11.249 is exempt from the BMF Consistency Guidelines (for example (e.g.), indicating diamonds) as shown in other sections of IRM 3.11, Returns and Documents Analysis.

Purpose of the Form 8752

  1. The instructions in this section pertain to the coding and editing of Form 8752, Required Payment or Refund Under Section 7519. Form 8752 will be filed by partnerships and S Corporations who have elected to file their income tax returns on a tax year other than the required year. The Form 8752 is used to remit the required payment. It will be posted to the BMF as Master File Tax (MFT) Code 15, Document Code 23 and Tax Class 2. Time will be charged to Program 19000 (Other BMF Returns) and Program 19001 (Refunds).

  2. Form 1065, U.S. Return of Partnership Income, and Form 1120S, U.S. Income Tax Return for an S Corporation, use Form 8752 to figure and report the payment required under Section 7519 or to obtain a refund of net prior year payment(s). A partnership (Form 1065) or S Corporation (Form 1120S) must file Form 8752 if it made an Internal Revenue Code (IRC) 444 election by filing Form 8716, Election To Have A Tax Year Other Than a Required Tax Year, and its election is still in effect for the tax year. Any tax year that has a IRC 444 election in effect is an "applicable election year." Prior to 1990, the IRC 444 payment made by these taxpayers was reported on Form 720, Quarterly Federal Excise Tax Return.

  3. For applicable election years beginning in 1990, Form 8752 must be filed and the required payment made on or before May 15 of the year following the calendar year in which the applicable election year begins. The required payment is intended to represent the value of the tax deferral by the owners of those entities using a taxable year other than the required year. Generally, for an S corporation, the tax year resulting from a IRC 444 election is a Fiscal Year (FY) ending in September, October, or November. A partnership’s tax year may differ and depends on the tax year of the partners. The required payment is considered a deposit.

IRM Deviation Procedures

  1. IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2.4, When Procedures Deviate from the IRM, and elevated through appropriate channels for executive approval.

Taxpayer Advocate Service (TAS)

  1. Per the Taxpayer Bill of Rights (TBOR), taxpayers have the right to expect a fair and just tax system which provides taxpayers with the opportunity to have their facts and circumstances considered when it might affect their underlying liabilities, ability to pay, or ability to provide information timely.

  2. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service (TAS) if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through normal channels. For additional information on the Taxpayer Bill of Rights, visit http://taxpayeradvocate.irs.gov/About-TAS/Taxpayer-Rights.

  3. Refer taxpayers to TAS when the contact meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria), or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps cannot be taken to resolve the taxpayer's issue the same day.

  4. "Same day" includes cases that can be resolved in 24 hours, as well as cases where steps can be taken within 24 hours to begin resolving the issue. (See also IRM 13.1.7.4, Same Day Resolution by Operations.)

  5. When making a TAS referral, use Form 911, and forward to TAS in accordance with your local procedures.

Taxpayer Advocate Service (TAS) - Service Level Agreements (SLAs)
  1. The National Taxpayer Advocate has reached agreements with the Commissioners of the Wage and Investment (W&I) Division, Small Business Self-Employed (SBSE) Division, Tax Exempt and Government Entities (TEGE) Division, Criminal Investigation (CI), Appeals, and Large Business and International (LB&I) Division, that outline the procedures and responsibilities for the processing of TAS casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs).

  2. The SLAs are located at http://tas.web.irs.gov/policy/sla/default.aspx.

BMF Identification (ID) Theft

  1. BMF Identification Theft is increasing. If a tax examiner in SP Code and Edit finds a case with attachments or correspondence indicating the taxpayer is a victim of ID Theft, provide the whole case to your senior/lead. Your senior/lead will expedite the case to the Planning and Analysis (P&A) staff for referral to one of the SP BMF ID Theft liaisons. The taxpayer must indicate that they are a victim of "ID Theft" ; do not send cases that are subject to "Criminal Investigation (CI)" , "Examination (Exam)" or "Fraud" review.

Frivolous Arguments

  1. A frivolous argument is used for expressing dissatisfaction with the substance, form, or administration of the tax laws by attempting to improperly avoid or reduce tax liabilities. Recognized frivolous arguments made by businesses include, but are not limited to, the examples in IRM 25.25.10, Frivolous Return Program. Also, see Exhibit 3.11.249-3, Potential Frivolous Arguments for Examination Review.

  2. Review the return to determine whether it appears to be a frivolous return.

    Frivolous Arguments

    If Then
    The return meets any of the conditions for identification as a frivolous return.

    Caution:

    If the return shows Computer Condition Code (CCC) "U" (or Action Code 331) and attached a Form 4227 with the remarks, "Refer to Exam FRP for audit after processing," continue to next procedure.

    Remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Program (FRP) for review.
    Examination has selected the return as frivolous (e.g., indicated by CCC "U" or Action Code 331) and attached a Form 4227 with the remarks, "Refer to Exam FRP for audit after processing," but sends the return for processing,
    • Continue processing the return using procedures in IRM 3.11.249.

    • Do not circle or void the CCC "U" (or Action Code) indicating a frivolous return.

     

    Note:

    Returns having only zeros, no entries, are blank, or indicate "None" , "Not Liable" , etc. with no evidence of a frivolous argument are not to be considered as frivolous returns.

IRS Employee Contacts - RRA98, Section 3705(a)

  1. The Restructuring and Reform Act of 1998 (RRA98), Section 3705(a) provides identification requirements for all IRS employees working tax-related matters. IRS employees are required to give their name and unique identification number during taxpayer telephone, face-to-face and written contact. In addition, a telephone number is required on all taxpayer correspondence. This will provide taxpayers with enough information to identify an IRS employee who has previously assisted with tax-related matters.

  2. All IRS employees who communicate by telephone, correspondence or face-to-face, with taxpayers or their personal representatives, on tax-related matters are required to provide (at minimum) the following information:

    1. Telephone Contact - Their title (e.g., Mr., Mrs., Ms., Miss), last name, and badge identification (ID Card) number.

    2. Face-to-Face Contact - Their title (e.g., Mr., Mrs., Ms., Miss), provided as appropriate during the conversation, their last name and badge identification (ID Card) number.

    3. Correspondence - All correspondence must include a telephone number that taxpayers can call for answers to any questions they may have. In addition, manually generated and handwritten correspondence must have the employee’s title (e.g., Mr., Mrs., Ms., Miss), last name, and IDRS (Integrated Data Retrieval System) number, letter system number, or their badge identification (ID Card) number.

    4. The IDRS number and numbers for some other letter systems are automatically generated. If it is not generated, or a handwritten note is prepared, the badge identification (ID Card) number must be used. Toll-free employees may also provide their location for identification purposes. Faxes to taxpayers on tax-related matters are considered manually-generated correspondence and must include the required information.

      Caution:

      Email can’t be used to transmit taxpayer account information.

    5. Correspondence, whether sent directly to the taxpayer or to the taxpayer's personal representative, must contain the required information.

    6. When taxpayer requests to speak with a specific employee who previously handled their inquiry or request, or complains about the level of service previously provided, every attempt should be made to resolve the taxpayer's inquiry. If the issue can’t be resolved, the employee should refer the inquiry using established procedures to his or her manager.

    7. Correspondex letters will require a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to any questions that the taxpayer may have about the correspondence, or the employee is asking the taxpayer for additional case-related information.

    8. Otherwise, if the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

    9. Secretaries, receptionists, or other people who answer the telephone in functional offices need to identify themselves and should provide their badge identification (ID Card) number only if they are answering telephones which are routinely used to provide tax or account information.

    10. It is not necessary to repeat the badge identification (ID Card) number on a subsequent contact, when the nature of an employee's work involves multiple contacts with the same taxpayer, and the employee has given the taxpayer (either telephone or in-person) his or her badge identification (ID Card) number on the first contact.

    Note:

    The Taxpayer Bill of Rights (TBOR) was adopted by IRS in June 2014 and provides that taxpayers have the right to receive prompt, courteous and professional assistance in their dealings with the IRS. They are to be spoken to in a way that is easily understood and any correspondence from the IRS must be clear and understandable. They have the right to speak to a supervisor whenever quality service is not received.

  3. When contacting taxpayers by telephone, you must be sure you are speaking with the taxpayer or authorized representative before disclosing tax information. See IRM 21.1.3.2.3, Required Taxpayer Authentication, and IRM 21.1.3.2.4, Additional Taxpayer Authentication. Also, before leaving a message on a taxpayer's answering machine, see IRM 11.3.2.7.1, Leaving Information on Answering Machines/Voice Mail. See IRM 3.11.249.6.4, Use of Fax for Taxpayer Submissions, for additional information.

  4. Prior to faxing confidential information to the taxpayer, review fax procedures contained in IRM 11.3.1.14, Facsimile (FAX), Electronic Facsimile (E-FAX), and IRS Internal Enterprise Electronic Facsimile (EEFAX) Transmission of Tax Information. See IRM 3.11.249.6.4, Use of Fax for Taxpayer Submissions, for additional information.

  5. During taxpayer contact, if the taxpayer asks to be referred to the Taxpayer Advocate Service (TAS) or you believe a referral to TAS may be appropriate, see IRM 3.11.249.2.4, Taxpayer Advocate Service (TAS).

Criminal Investigation (CI) Referral

  1. Criminal Investigation (CI) investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC include willful attempts to evade or defeat the income tax. Criminal tax violations also include the willful failure to collect or pay over tax and false claims for refunds based on bogus return information.

  2. If CI has stamped the return, no further CI action is required.

  3. For returns with refund claims ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ do the following:

    Criminal Investigation (CI) Referral

    Refund Claim Ogden, Kansas City, and Cincinnati
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. Make a copy of the first two pages of the return along with any page of the return that appears suspicious.

    2. Attach Form 4227 to the copy.

    3. Route the copy to Ogden, Mail Stop 9001, Criminal Investigation (CI).

    4. Edit an action trail "Copy to CI" , or "CI Referral" , or similar language in the lower left corner going vertically up the side of the return.

    5. Continue processing the return.

     

  4. Because of the repetitive nature of the Code and Edit (C&E) function, C&E Tax Examining Technicians often recognize income tax return data, which is outside of the norm for data found on similar returns for each income tax return type. If C&E identifies return characteristics not meeting Audit Code or Exam referral criteria it deems suspicious, CI is available to review the referral.

  5. If a suspicious return is identified, do the following:

    1. Make a copy of the first two pages of the return along with any page of the return that appears suspicious.

    2. Attach Form 4227, Intra-SC Reject or Routing Slip, (or other appropriate routing skip) to the copy.

    3. Route the copy as indicated in the table below.

      CI Referral Criteria Routing

      Submission Processing Campus/Center Route the copy to:
      Ogden Mail Stop 9001, Criminal Investigation (CI)
      Kansas City Mail Stop S2 9000, Criminal Investigation (CI)
      Cincinnati Mail Stop 83G, Criminal Investigation (CI)

       

    4. Edit an action trail "Copy to CI" , or "CI Referral" , or similar language in the lower left corner going vertically up the side of the return.

    5. Continue processing the return.

  6. If the return fits other criteria (e.g., Frivolous Argument), take appropriate action.

Examination (Exam) "Funny Box"

  1. The primary objective in identifying tax returns for examination is to promote the highest degree of voluntary compliance. Examination will provide support and assist SP with any questionable return identified during processing. Exam has a vast multitude of programs and tolerance criteria already identified in various IRM sections. Exam allows SP to refer questionable returns unless restricted by another IRM section.

Foreign Currency

  1. For returns completed in other than U.S. currency, process as filed. However, if corresponding for missing/incomplete item(s), include in the letter (e.g., 3463C, 118C) to resubmit return in U.S. currency.

Controls

  1. This section contains information regarding the descriptions and functions of the forms and documents used to establish and maintain controls in campus pipeline operations.

Block Control Documents

  1. Each block of documents processed under the Automatic Data Processing (ADP) system is required to have a Block Control Document attached for control and identification purposes. If blocks, or unblocked documents which should have been blocked, are received without a Block Control Document, return the block to the originating area for correction. The Block Control Documents are listed as follows:

  2. Form 813, Document Register, is used with remittance (W/R) documents.

  3. Form 1332, Block and Selection Record, is used for non-remittance (N/R) documents. The Form 1332, Block and Selection Record, is also used for returns processed through the Residual Remittance Processing System (RRPS). These returns are considered non-remittance returns since the payments have been posted to the Business Master File (BMF) to provide a fact of filing.

    1. If a numbered remittance document is in a numbered non-remittance block controlled by Form 1332, the document must be "U" coded. It will have to be re-blocked for account maintenance.

    2. If every document in a non-remittance block has a remittance attached, return the block for re-blocking.

  4. Form 3893, Re-Entry Document Control, is used to reinput a return that has not posted to an account or module.

    1. If a single return is being reinput, the Form 3893 will be attached to the face of the document.

    2. If more than one return from the same original block is being reinput, the Form 3893 will be attached to the first return in the reinput block.

    3. If more than one return is in the block and only the top Form 3893 has an entry in Box 1 (Alpha/Numeric block control no.), edit all returns using current processing instructions and keep all returns clipped together.

    4. Circle the Computer Condition Code (CCC) "G" if present.

    5. Do not edit CCC "G" on amended returns.

    6. If the return was not edited according to current processing instructions, circle out any Computer Condition Codes and any other edit marks that are no longer applicable. Re-edit according to current processing instructions.

    7. If the return was edited according to current processing instructions, ensure the information from Form 3893 is edited on the return.

      Form 3893

      Form 3893 Action Taken
      Box 14 (Remarks) Ensure the information is edited to the return.
      Box 15 (Process as)
      1. Circle any green rocker and edit marks that may indicate a receipt of remittance.

      2. Do not change any tax due amounts.

       

    8. Examine returns that have any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.

      Correction Procedures

      If Then
      Improper perfection, Edit the same correction in red/green (per local procedure) to the appropriate area.
      Taxpayer error, Leave the entries as shown on the document.

       

    9. A received date must be present on all reinput returns.

      Note:

      See IRM 3.11.249.11 (5) for additional information.

      Received Date

      If Then
      Received date is not present, Edit a received date to the middle of the return in MMDDYY format.
      Multiple received dates are present, Circle all but the earliest date.

       

    10. When additional information is still needed to make the return processable, prepare approved Correspondence Action Sheet or Form 4227, Intra-SC Reject or Routing Slip, for the appropriate action (e.g., correspondence, research, etc.).

    11. When perfection is not possible, edit CCC "U" on the return and attach Form 4227, Form 10886, Reject Routing Slip, (or other appropriate routing slip) notating, "PERFECTION NOT POSSIBLE" and leave in batch.

  5. Form 13596, Reprocessing Returns, is used to reprocess a return to the correct account or module that had previously posted to the wrong account or module.

    1. Circle CCC "G" if present.

    2. Do not edit CCC "G" on amended returns.

    3. If the return was not edited according to current processing instructions, circle out Computer Condition Codes and any other edit marks that are no longer applicable. Re-edit according to current processing instructions.

    4. If the return was edited according to current processing instructions, ensure the information from Form 13596 is edited on the return.

      Form 13596

      Form 13596 Action Taken
      TIN correction Edit correct TIN on return.
      Tax period correction Edit correct Tax period ending on return
      Reasonable cause Edit appropriate computer condition code:
      1. Edit CCC "R" if the Failure to File "FTF" box is checked.

      2. Edit CCC "D" if the Failure to Pay "FTP" box is checked.

       

    5. Examine returns that have any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.

      Correction Procedures

      If Then
      Improper perfection, Edit the same correction in red/green (per local procedure) to the appropriate area.
      Taxpayer error, Leave the entries as shown on the document.

       

    6. A received date must be present on all reprocessed returns.

      Note:

      See IRM 3.11.249.11 (5) for additional information.

      Received Date

      If Then
      Received date is not present, Edit a received date to the middle of the return in MMDDYY format.
      Multiple received dates are present, Circle all but the earliest date.

       

    7. Circle the green rocker and edit marks that may indicate a receipt of remittance.

    8. When additional information is still needed to make the return processable, prepare approved Correspondence Action Sheet or Form 4227 for the appropriate action (e.g., correspondence, research, etc.).

Document Control

  1. This section provides descriptions and functions of the Document Locator Number (DLN), blocking returns and documents, and document count.

Document Locator Number (DLN)
  1. The DLN is a controlled number assigned to every return or document input through the Automatic Data Processing (ADP) system. This number is assigned when the document is blocked and brought under Accounting Control.

  2. The DLN is used to control, identify, and locate documents processed in the ADP system. It will be used to locate the document as long as it (or a substitute document) remains in the files, unless it becomes the subject of subsequent action. See Figure 3.11.249-1, Document Locator Number Illustration.

    Figure 3.11.249-1

    This is an Image: 33586001.gif
     

    Please click here for the text description of the image.

  3. The parts of the DLN are explained in the Parts of the Document Locator Number (DLN) Table below. Refer to Figure 3.11.249-1, Document Locator Number Illustration.

    Note:

    For additional information, see Document 6209, IRS Processing Codes and Information.

    Seven Parts of the Document Locator Number (DLN)

    Seven Parts of the Document Locator Number (DLN) Example
    Part 1 - File Location Code (FLC) - Identifies the campus or area office processing the document. File Location Code is 00.

    Note:

    Ogden Campus FLC: (29), Kansas City (09), Cincinnati Campus FLC: (17). For additional Filing Location Codes, see Document 6209, IRS Processing Codes and Information.

    Part 2 - Tax Class - Identifies the type of return or document that was filed. Business Master File (BMF) Tax Class 2 represents Form 8752.
    Part 3 - Document (Doc) Code - Identifies the type of document within a tax class. Doc Code 23 is for Form 8752.
    Part 4 - Julian Date - Identifies the day of the year the tax return or document is numbered (001 through 365). Julian Date 051 represents Calendar Date 02-20-2019.
    Part 5 - Block Number - Identifies the different categories of document control for input to the Master File. Block Number is 012
    Part 6 - Sequence Number - Identifies the sequence of a document within a block. The maximum number will be 100 and the documents are numbered 00 to 99. Sequence Number 03 indicates it is the fourth document.
    Part 7 - Year - The year the document is being processed. This digit is assigned later in the processing cycle. A return filed in 2019 will have processing year digit 9.

     

  4. On numbered blocks, compare the first return in the block to the Form 813, Document Register, or Form 1332, Block and Selection Record. If the documents have not been blocked, all documents in a block (or a batch) should be of the same type. The type of document is determined by a specific Tax Class and Document Code.

  5. The first eleven digits of the DLN of each document in a block should be the same as the corresponding digits stamped on the face of the Form 813 or Form 1332. If there is a difference, give the block to the manager for re-association of the documents with the correct block control document. It is necessary to check only the DLN of the first document in a block to make the above comparisons of DLNs.

  6. A document may have two different DLNs stamped on it because of re-blocking. If this happens, circle the incorrect DLN. The correct DLN can be determined from the Form 813, Document Register, or Form 1332, Block and Selection Record.

Blocking Returns and Documents
  1. All returns and documents to be input to the Automatic Data Processing system are assembled into blocks of 100 documents or less before being numbered. A separate control is put on each block. A document must not be taken out of a numbered block during the Code and Edit process. However, a document can be withdrawn from a block before it is numbered. Two reasons a document may be taken out of a block are:

    1. The return is for a period prior to December 31, 1990.

    2. The return is unprocessable. See IRM 3.11.249.9, Unprocessable Procedures, for additional information.

Document Count
  1. The total number of returns in a numbered block is usually shown on the Form 813, Document Register, or Form 1332, Block and Selection Record, by a circled number for a partial block or blank for a full block of 100. If the block is a partial and the number is not shown:

    1. Form 813 - Circle one number higher than the last sequence number on the form.

    2. Form 1332 - Circle one number higher than the last DLN in the block.

    Note:

    Do not circle the total number of documents for an unnumbered block.

General Editing Guidelines

  1. This section provides general editing information, descriptions and various editing marks used by Document Perfection.

General Editing Information

  1. Enter all edit marks on a document being input to the ADP system with brown, orange, red, green, or purple pen unless a specified instruction requires another type of marking.

    Note:

    Each center can decide the color to be used. Any reference to the color "red" means the color used by your campus.

    1. Code and Edit will correct Residual Remittance Processing System (RRPS) editing errors regarding the Name Control, Employer Identification Number (EIN), and the tax period. The edit corrections will take precedence over the RRPS editing.

      Note:

      Corrections on RRPS documents made in "red" should not be changed.

    2. Code and Edit will reject any documents that reflect an incorrect RRPS money amount, MFT, or tax class if incorrectly entered by RRPS. An incorrect RRPS money amount will usually be the result of "mixed data" for two or more returns.

  2. Edit any misplaced or illegible transcription entry to the proper transcription line. An arrow may be used if it will leave no room for doubt as to where the entry belongs.

  3. Form 8752, Required Payment or Refund Under Section 7519, is required to be edited for dollars and cents.

Edit Marks

  1. Edit marks are edited on the return for transcription to the ADP system through Integrated Submission and Remittance Processing (ISRP). The editing can be entered in brown, red, orange, purple or green pencil/pen.

  2. The only items edited on a return are those to be transcribed except where specific instructions require editing of a non-transcribed item. Lines are left blank if the entry would be a zero amount unless otherwise instructed.

  3. The original entry on a return is never obliterated, altered or erased when deleting or correcting an entry. Always exercise care to ensure the original entry remains legible. Perfected entries provide a legible "action trail/audit trail" for anyone who may work with the return later.

  4. For a description of specific edit marks, see the table below:

    Edit Marks

    Edit Mark Description
    "X" The "X" is used to delete tax data or to indicate that an item is not to be transcribed. For example, if deleting an original taxpayer entry, edit an "X" to the left of the entry to be deleted. Edit the correct entry to the left or above the "X" .
    "/" The "/" can be used when deleting a form or schedule that is not being transcribed.
    Circle Indicates that an entry is not to be transcribed. Also used to delete entity data or a received date.

    Note:

    If the taxpayer circles an entry, edit the entry.

    Underline Indicates that an entry is to be transcribed (e.g., Name Control, tax period, etc.).
    Arrow Indicates the correct placement of a misplaced entry. An arrow may be used if the misplaced item is close to the correct line and there is no question where the entry belongs.

    Note:

    A double arrow may be used if the same figure is to be transcribed in two different places (along with any required transcription data between the two arrows).

    Check Mark Indicates that an entry has been manually math verified and is correct.
    Bracket/Parenthesis Indicates a negative numerical amount.

    Note:

    Code and Edit is not required to bracket negative amounts when brackets are preprinted on the form or schedule or when the taxpayer clearly indicates a negative amount with brackets () or "-" sign. It will be necessary to bracket negative amounts when editing negative entries on transcription lines (e.g., computing and entering a line entry, entering a missing line entry, etc.).

    Vertical Line or Decimal Point Indicates the separation of dollars and cents if no distinction was made by the taxpayer.
    Zero, Dash, None, or N/A "Zero," "Dash," "None," or "N/A" are considered valid entries except when specific instructions require editing of an entry.
    Edit Marks Made by Other IRS Functions Edit marks entered by other areas (such as; Entity, Collections or Accounts Management (AM)), are not to be re-edited except to place the marks in the correct area or to perfect for legibility. Do not edit (or write) over another area's edit marks.

    Exception:

    Photocopied Returns.

    Photocopied Returns Re-edit or underline any valid, black edit marks. See IRM 3.11.249.3.1(4), Block Control Documents, and IRM 3.11.249.6.3, Correspondence Imaging System (CIS) Returns.
    Rocker Indicates the amount paid when drawn under a remittance amount.

     

Attachments to Documents

  1. This section describes the forms and documents filed with Form 8752, Required Payment or Refund Under Section 7519, and provides information regarding what to do with each.

Examination of Attachments

  1. All attachments to the return must be reviewed before the return can be considered processable.

    1. Attachments should only be detached when specifically instructed.

      Note:

      Consider a return or document an "original" if it has an original signature or has been stamped "Process as Original" .

    2. Edit action trail (e.g., "2848 DETACHED" or similar language) in the lower left corner going vertically up the side of the return.

    3. Ensure any document that must remain with the return is securely stapled to prevent its loss.

  2. Follow the general guidelines in the Routing Guide for Attachments Table below for each attachment.

    Routing Guide for Attachments

    Form/Document Detach Action
    CP 259/CP 959 (Spanish version)
    Master File Generated 1st TDI Notice

    Note:

    CP stands for Computer Paragraph.

    No Correspondence is attached or taxpayer’s response indicates any of the following:
    • Taxpayer disagrees that they are required to file the return.

    • Only page one of the return is attached.

    • Employer Identification Number (EIN) on notice does not match EIN on return.

    • Return requested on notice not the same as return submitted.

    • Taxpayer asking question(s) or requesting IRS take action(s) on their account.

    • Case involves any other IRS action(s) C&E not trained to complete.

    Then, Route to Compliance Services Collection Operations (CSCO). Use return address on CP notice:
    • Brookhaven - Mail Stop #662

    • Memphis - Mail Stop #81

    • Philadelphia - 4-N31.142



    If none of the above apply, correspondence or written response to the notice is not attached and/or, "599" is notated:
    1. Move the notice to the back of the return.

    2. Continue processing the return.

    Note:

    If the return is unsigned, but the taxpayer has signed the CP notice under the jurat, it is not necessary to correspond for the signature.

    CP 259 A through H
    Master File Generated 1st TDI Notice
    No Route to:
    Ogden Submission Processing Campus (OSPC)
    BMF Entity Mail Stop 6273
    CP 504/CP 504B
    Final Notice - Balance Due
    No
    1. Place Computer Paragraph (CP) 504/CP 504B to the front of the return.

    2. Route notice and return to Accounts Management (AM).

    CP 518
    Delinquency Notice
    No Correspondence is attached or taxpayer’s response indicates any of the following:
    • Taxpayer disagrees that they are required to file the return.

    • Only page one of the return is attached.

    • Employer Identification Number (EIN) on notice does not match EIN on return.

    • Return requested on notice not the same as return submitted.

    • Taxpayer asking question(s) or requesting IRS take action(s) on their account.

    • Case involves any other IRS action(s) C&E not trained to complete.

    Then, Route to Compliance Services Collection Operations (CSCO). Use return address on CP notice:
    • Brookhaven - Mail Stop #662

    • Memphis - Mail Stop #81

    • Philadelphia - 4-N31.142



    If none of the above apply, correspondence or written response to the notice is not attached and/or, "599" is notated:
    1. Move the notice to the back of the return.

    2. Continue processing the return.

    Note:

    If the return is unsigned, but the taxpayer has signed the CP notice under the jurat, it is not necessary to correspond for the signature.

    Letters 112C, 282C, 2255C or 2284C No
    1. Identify which organization initiated the letter to the taxpayer (e.g., What organization signed the letter?).

    2. Route letters initiated by Accounts Management (AM) to Accounts Maintenance Research (AMRH):

      • Ogden - Mail Stop 6712

      • Kansas City - Mail Stop N2 6800

      • Cincinnati - Mail Stop 534G

    3. Route letters initiated by Collections as follows:

      1. If correspondence is attached or taxpayer’s response indicates any of the following:

        • Taxpayer disagrees that they are required to file the return.

        • Only page one of the return is attached.

        • Employer Identification Number (EIN) on letter does not match EIN on return.

        • Return requested on letter not the same as return submitted.

        • Taxpayer asking question(s) or requesting IRS take action(s) on their account.

        • Case involves any other IRS action(s) C&E not trained to complete.

        Then, Route to Compliance Services Collection Operations (CSCO). Use return address on letter:

        • Brookhaven - Mail Stop #662

        • Memphis - Mail Stop #81

        • Philadelphia - 4-N31.142

      2. If none of the above apply, correspondence or written response to the letter is not attached and/or, no "599" is notated:
        Then, Move the letter to the back of the return and continue processing the return.

    Note:

    If the return is unsigned, but the taxpayer has signed the letter under the jurat, it is not necessary to correspond for the signature.

    Other Tax Returns (Original signature) Yes
    1. Edit received date to the detached return.

    2. Route to appropriate function unless specifically directed otherwise.

    Exception:

    Returns attached to a consolidated return will NOT be detached.

    Petitions in Opposition of Tax Law Provisions Yes

    Note:

    No action trail needs to be edited when detaching a petition.

    Route to:
    IRS
    ≡ ≡ ≡ ≡ ≡ ≡
    1111 Constitution Avenue, NW
    Washington, DC 20224
    State Tax Returns, original or copy, with an original signature Yes Route to Receipt & Control.
    State Tax Returns (Photocopy, facsimile or no signature) No Leave attached.
    Statement establishing Reasonable Cause for delinquent filing No
    1. Issue Letter 1382C, Penalty Removal Request Incomplete.

    2. Continue editing the return.

    Request for Abatement of penalties No
    1. Issue Letter 1382C, Penalty Removal Request Incomplete, to inform the taxpayer of the proper procedure to follow to request penalty abatement, if, and when a penalty is assessed.

    2. Continue editing the return.

    Remittance found No Immediately hand-carry return and remittance to supervisor.
    Request for Acknowledgement No No action required.
    Request for Adjustment to another document Yes
    1. Remove an attachment requesting an adjustment (Automatic Data Processing (ADP) or Non-ADP).

    2. Route to Accounts Management (AM) using a Form 4227, Intra-SC Reject or Routing Slip, Form 10886, Reject Routing Slip, (or other appropriate routing slip) for subsequent action.

    3. If the attachment does not have the taxpayer’s name, address, EIN, received date, and tax period, edit this information on the attachment.

    Request for information or inquiries Yes
    1. Photocopy any data necessary to process the return.

    2. Attach the photocopy to the return.

    3. Route original attachment to the proper office for necessary action.

    Requests for Installment Agreement Yes
    • Ogden - Route to Collections.

    • Kansas City - Route to Mail Stop P4 5000.

    • Cincinnati - Route to Receipt and Control (R&C).

    Request for Form 8109
    Deposit Slips or Coupons Books
    No No action required.
    Request for Forms or Schedules No
    • If requesting current year forms:

      1. Prepare Form 4190, Order Form for Tax Forms and Publications.

      2. Forward to National Distribution Center (NDC) for processing.

    • If requesting prior year forms:

      1. Prepare Form 6112, Prior Year Tax Products Order Form.

      2. Forward to National Distribution Center (NDC) for processing.

    Note:

    Form 4190 and Form 6112 are generally used for Individual Master File (IMF) requests. Therefore, enter all BMF requests for forms and schedules in the "Write-In" portion of the forms.

    Form 433-B
    Collection Information Statement for Businesses
    Yes
    • Ogden - Route to Collections.

    • Kansas City - Route to Mail Stop P4 5000.

    • Cincinnati - Route to Receipt and Control (R&C).

    Form 433-D
    Installment Agreement
    Yes
    • Ogden - Route to Collections.

    • Kansas City - Route to Mail Stop P4 5000.

    • Cincinnati - Route to Receipt and Control (R&C).

    Form 2848
    Power of Attorney and Declaration of Representative
    Yes/No
    1. Yes:

      • Ogden - Route to Mail Stop 6737.

      • Kansas City - Route to:
        Internal Revenue Service
        5333 Getwell Road Mail Stop 8423
        Memphis, TN 38118

      • Cincinnati - Route to:
        Internal Revenue Service
        5333 Getwell Road Mail Stop 8423
        Memphis, TN 38118

    2. No: No action is required if a "General Power of Attorney" , "Durable Power of Attorney" , or "Tax Information Authorization" is submitted on any document other than Form 2848 or Form 8821.

    3. See IRM 3.11.249.10.9, Centralized Authorization File (CAF) Indicator, for additional information.

    Form 3949
    Information Report Referral
    Yes
    1. Route Form 3949 according to page 2 of Form 3949 to Criminal Investigation (CI), Exam, Disclosure, etc., following local procedures.

    2. Continue processing the return.

    Form 3949-A
    Information Referral
    Yes
    1. Route Form 3949-A to the Fresno Service Center.

    2. Continue processing the return.

    Form 8302
    Electronic Deposit of Tax Refund of $1 Million or More
    No Do not detach.

    See IRM 3.11.249.15.13, Line 12 - Refund Payments.
    Form 8716
    Election to Have a Tax Year Other Than a Required Tax Year
    Yes/No Numbered:
    1. Edit Computer Condition Code (CCC) "U" on the return.

    2. Route to Entity Control following local procedures using Form 13934Entity Document/C&E Merge Transmittal.

    3. Notate return is to be held for two cycles so the Form 8716 can be input.



    Unnumbered:
    1. Route the Form 8716 to Entity Control following local procedures using Form 13934Entity Document/C&E Merge Transmittal.

    2. Suspend the Form 8752 processing for two cycles so the Form 8716 can be input.

    3. Edit an action trail on the Form 8752 that Form 8716 was detached (or similar language) and routed to Entity Control following local procedures using Form 13934Entity Document/C&E Merge Transmittal.

    Form 8821
    Tax Information Authorization
    Yes/No
    1. Yes:

      • Ogden - Route to Mail Stop 6737.

      • Kansas City - Route to:
        Internal Revenue Service
        5333 Getwell Road Mail Stop 8423
        Memphis, TN 38118

      • Cincinnati - Route to:
        Internal Revenue Service
        5333 Getwell Road Mail Stop 8423
        Memphis, TN 38118

    2. No: No action is required if a "General Power of Attorney" , "Durable Power of Attorney" , or "Tax Information Authorization" is submitted on any document other than Form 2848 or Form 8821.

    3. See IRM 3.11.249.10.9, Centralized Authorization File (CAF) Indicator, for additional information.

    Form 8822
    Change of Address, or

    Form 8822-B
    Change of Address or Responsible Party - Business
    Yes/No
    1. Yes: If any of the following applies:

      • Mailing address information is different,

      • Location address is listed on Form 8822/8822-B, Line 7,

      • An entry is listed on Form 8822-B, Lines 8 or 9,

      Then detach Form 8822 or Form 8822-B and route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.

    2. No: If all the following applies:

      • Mailing address information is the same,

      • No location address is listed on Form 8822/8822-B, Line 7,

      • No entry on Form 8822-B, Lines 8 or 9,

      Then take no action.

    3. See IRM 3.11.249.10.5(3) for additional information.

    Note:

    A business may have two addresses. One is the mailing address and the other is the location address or physical location of the business.

    Form 9465
    Installment Agreement Request
    Yes
    • Ogden - Route to Collections.

    • Kansas City - Route to Mail Stop P4 5000.

    • Cincinnati - Route to Receipt and Control (R&C).

    Form 14039-B, Business Identity Theft Affidavit No
    1. If the envelope is addressed to a specific function or a specific function is indicated by an IRS CP notice or IRS letter:

      • Place the Form 14039-B on top of the return and

      • Route Form 14039-B and the return to the specific function

    2. If Ogden, Kansas City, or Cincinnati receives a Form SS-4, Application for Employer Identification Number, and Form 14039-B, route the returns to:
      Internal Revenue Service
      BMF Entity
      201 W. Rivercenter Blvd.
      Mail Stop 343
      Covington, KY 41011.

    3. For the following returns:

      • Loose Form 14039-B

      • No correspondence attached (e.g., no IRS CP notice or IRS letter)

      • The envelope is not addressed to a specific function


      Place the Form 14039-B on top of the return and route to the local Image Control Team (ICT).

      • Ogden - Mail Stop 6552

      • Kansas City - Mail Stop C1 6525

      • Cincinnati - Mail Stop 318G

    Form 14157
    Complaint: Tax Return Preparer
    Yes Route to:
    Attn: Return Preparer Office
    401 W. Peachtree Street NW
    Mail Stop 421-D
    Atlanta, Georgia 30308

     

Unrelated Attachments

  1. Other Unrelated Attachments - Remove other unrelated attachments from the document being processed, route using a Form 4227 (or other appropriate routing slip) to the appropriate function for the necessary action, and edit an action trail in the lower left corner going vertically up the side of the return. On the Form 4227, include the following identifying information:

    1. Name and address of the taxpayer

    2. Employer Identification Number (EIN)

    3. Received date

    4. Tax period and type of document from which attached

    5. Action required to be taken

  2. If the taxpayer writes the information on the return, photocopy the data and route to the appropriate function using a Form 4227 (or other appropriate routing slip).

  3. If an attachment should be removed because most of the information is unrelated to the document being processed, photocopy the applicable data needed to process the document under examination and attach to the document being processed.

Other Related Attachments and Required Action

  1. Remittance Attached - Immediately give to your manager. The manager should follow the instructions in IRM 3.8.46, Discovered Remittance.

  2. If an attachment indicates that the taxpayer has included a tax payment for more than one tax period, take the following action:

    1. Numbered Return - Prepare a dummy return(s) if possible; otherwise, initiate correspondence using Form 3696, Correspondence Action Sheet, (or other approved Correspondence Action Sheet) to secure the needed data. Edit CCC "U" on the return.

    2. Unnumbered Return - Prepare a dummy return(s) if possible; otherwise, pull the return and prepare Form 3696, Correspondence Action Sheet, (or other approved Correspondence Action Sheet) to initiate correspondence to the taxpayer to secure the additional return(s) and information. If the taxpayer does not reply, enter CCC "X" .

  3. If the taxpayer files a return for the purpose of submitting a subsequent payment, or did not include the payment with the original return, enter CCC "U" . Prepare Form 4227 (or other appropriate routing slip) and notate on Form 4227, "Research - Missed or Subsequent Payment." Rejects will research to determine if the original return posted and if the payment was subsequent or missed.

Correspondence

  1. There are two types of correspondence that Code and Edit may encounter:

    • Correspondence received from taxpayers, and

    • Correspondence issued to taxpayers.

  2. Error Resolution System (ERS) Action Codes or Computer Condition Code "3" (No Reply to Correspondence) do not apply to Form 8752, Required Payment or Refund Under Section 7519, processing.

  3. In compliance with a Chief Counsel opinion issued September 2, 2008, tax examiners will no longer send returns back to the taxpayer when corresponding for missing signature, missing information and supporting schedules and documentation on refund or zero balance returns. These changes were effective October 5, 2009.

Definition of Correspondence from Taxpayers

  1. Correspondence is all written communications from a taxpayer or his/her representative, excluding tax returns, whether solicited or unsolicited. This includes:

    1. Written communications in response to IRS requests for information or data.

    2. Written communications, including annotated notice responses that provide additional information or dispute a notice.

    3. A telephone call that results in a written referral or research (Form e-4442, Inquiry Referral).

  2. The key to identifying taxpayer’s correspondence is to ask the following questions:

    1. Is the taxpayer waiting for a response from us?

    2. Is the taxpayer waiting for an action to be taken by us?

    3. Is the taxpayer asking a question?

    Note:

    A Post-It-Note, Sticky Note, or some other type of note stuck on the return by another function; such as, "Taxpayer (TP) requests penalties be waived" , does not constitute correspondence from the taxpayer.

Issuing Correspondence

  1. Issue correspondence to resolve any conditions causing the return to be unworkable or unprocessable.

    Exception:

    Do not correspond on returns prepared by Collections, IRC 6020(b) or by Examination, "Substitute for Return" (SFR).

  2. If the return is incomplete and appears to be a duplicate, give the return to the lead. The lead will initiate research for a Transaction Code (TC) 150 and any other research necessary to determine if the return should continue to be processed or other actions taken. A duplicate return could include any of the following:

    • A one-page return, with or without a signature.

    • Incomplete returns indicating "Payment Only" .

    Note:

    This list is not all-inclusive. Tax examiners may see other unusual documents that are not addressed in this subsection or in other areas of the IRM.

  3. Examine the return so that all of the conditions can be included in the same correspondence.

    Correspondence

    If And Then
    Correspondence is needed, Requires a response,
    1. Complete an approved Correspondence Action Sheet indicating the letter number (e.g., 86C, 118C, 3463C, etc.), Master File Tax (MFT), and the appropriate paragraphs.

      Note:

      Within these paragraphs, there may be fill-ins that the tax examiner will be required to enter, such as, Tax Period, form number, DLN, etc.

    2. Attach the Correspondence Action Sheet to the front of the return below the Entity area.

    3. Edit Computer Condition Code (CCC) "U" on the return.

    4. Finish editing the return and leave in the batch.

    Correspondence is needed, Does not require a response,
    1. Complete an approved Correspondence Action Sheet indicating the letter number (86C, 118C, 3463C, etc.), MFT, and the appropriate paragraphs.

      Note:

      Within these paragraphs, there may be fill-ins that the tax examiner will be required to enter, such as, Tax Period, form number, DLN, etc.

    2. Photocopy first page of return and attach the Correspondence Action Sheet below the Entity area on the front of the copy of the return. Be sure the name and address show clearly above the Correspondence Action Sheet.

    3. Forward the copy to the Correspondence area.

    4. Edit an action trail (e.g., "3463C Sent" ) in the lower left corner going vertically up the side of the return.

    5. Finish editing the return and leave in the batch.

     

    Note:

    There may be additional letters that are exclusive to the tax examiner's campus. These letters are for specific forms or conditions where it was deemed necessary for processing. The tax examiner should go to his or her Lead or Manager for copies of these letters to facilitate processing.

  4. Listed below are letters which are provided by Headquarters for Submission Processing Campus use in corresponding for items listed in this IRM. It is expected that tax examiners or their supervisors (or delegates) will have access to and be familiar with the Submission Processing Center Correspondex for selection of appropriate letters. This list is not all-inclusive.

    1. Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office - Letter referring taxpayer inquiry/forms to another office.

    2. Letter 118C, Corporate Return Incomplete for Processing: Form 1120, Form 1120 Series, Form 1120S - Letter requesting missing schedules or documents.

    3. Letter 143C, Signature Missing - Letter advising taxpayer that we have received tax form and need additional information to complete action on it.

    4. Letter 1382C, Penalty Removal Request Incomplete - Letter used to inform the taxpayer of the proper procedure to follow to request penalty abatement, if, and when a penalty is assessed.

    5. Letter 3463C, Missing Information Request to Process Business Returns - Letter requesting missing information to process business returns.

Correspondence Imaging System (CIS) Returns

  1. Correspondence Imaging System (CIS) is an inventory system for scanning all Accounts Management (AM) receipts into digital images and working the cases from those images.

  2. CIS returns are identified with "CIS Image - Do not correspond for Signature" stamped below the signature line or "CIS" annotated on the front of the return.

  3. Verify all edit marks and ensure placement is correct on a CIS return.

    Correspondence Imaging System (CIS) Returns

    If Then
    The edit marks are black, Underline the edit mark if correct or circle if incorrect.
    The edit marks are red or green, Circle if incorrect.
    The edit marks are missing or incorrect, Perfect as necessary.

     

  4. Follow the correspondence instructions below for processing CIS returns.

    Correspondence Imaging System (CIS) Returns

    If And Then
    The CIS return has a Form 13596, Reprocessing Returns, attached, The return is incomplete (e.g., missing signature, schedules, or forms),
    1. Do not correspond.

    2. Remove the return from the batch and route to Accounts Management (AM).

    3. If the return comes back from AM with the information still incomplete, send the return to AM again to secure all the missing information. Indicate "Additional information needed to process incomplete CIS return," or similar language on Form 4227 (or other appropriate routing slip).

    The "CIS" return has a Form 13596, Reprocessing Returns, attached and the return is incomplete (e.g., missing signature, schedules, or forms), There is an indication on the return that correspondence has been sent (e.g., CCC "3" is edited on the return), Do not route the return to AM. Continue processing the return.
    The CIS return does not have a Form 13596Reprocessing Returns, attached, The return is incomplete (e.g., missing signature, schedules, or forms), Follow normal correspondence procedures.

     

Use of Fax for Taxpayer Submissions

  1. Tax return information can be received via fax as part of return perfection even if a taxpayer signature is required. In circumstances where contact with the taxpayer has been made and documented, faxed signatures are acceptable.

  2. Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to determine which method of contact will be used.

  3. Code and Edit tax examiners will indicate the fax paragraph on the Form 3696, Correspondence Action Sheet, (or other approved Correspondence Action Sheet) to advise taxpayers of the option to fax their response.

  4. Use the following resources to make sure you are speaking with the taxpayer or authorized representative before disclosing any tax information:

    • IRM 21.1.3.2.3, Required Taxpayer Authentication

    • IRM 21.1.3.2.4, Additional Taxpayer Authentication

  5. Before leaving any messages on a taxpayer's answering machine, review:

    • IRM 11.3.2.7.1, Leaving Information on Answering Machines/Voice Mail

    • IRM 11.3.1.14, Facsimile (FAX), Electronic Facsimile (E-FAX), and IRS Internal Enterprise Electronic Facsimile (EEFAX) Transmission of Tax Information

Signature

  1. A signature and jurat is required on every Form 8752, Required Payment or Refund Under Section 7519, except on the following or unless the specific instructions direct otherwise:

    • Dummy returns prepared by IRS.

    • Returns filed under IRC 501(d) (Religious or Apostolic Organization).

    • Correspondence containing a signature and jurat is attached showing that the taxpayer is responding to an IRS letter or IRS notice.

    • Correspondence Imaging System (CIS) returns that have Form 13596 attached.

      Note:

      Do not correspond on CIS returns that have Form 13596 attached. See IRM 3.11.249.6.3, Correspondence Imaging System (CIS) Returns, for processing instructions.

  2. A "constructive signature," that is, a signature on an accompanying letter or other attachment, is not acceptable unless a perjury statement is given. In the absence of a perjury statement, the signature must be on the return.

    Note:

    Do not question any signature on the return.

    1. Internal Revenue Code (IRC) 6061 provides that any return, statement, or other document required to be made under any provision of the internal revenue laws or regulations shall be signed in accordance with the forms or regulations prescribed by the Secretary.

    2. IRC 6064 and Treasury Regulation 301.6064-1 provides that the signature on the return, statement or other document is evidence for all purposes that the individual signed the document.

  3. If the jurat is altered or stricken (crossed-out), see IRM 3.11.249.2.6, Frivolous Arguments, for frivolous return instructions.

  4. Accept a "signature declaration" (a signature with jurat obtained through IRS correspondence) if attached to the return.

    1. If the "signature declaration" is altered or stricken (crossed-out), see IRM 3.11.249.2.6, Frivolous Arguments, for frivolous return instructions.

    2. If the taxpayer responds with a self-prepared "signature declaration" , it must contain the same language as the jurat on the tax return (e.g. "UNDER PENALTIES OF PERJURY, I DECLARE THAT I HAVE EXAMINED THIS RETURN, INCLUDING ACCOMPANYING SCHEDULES AND STATEMENTS, AND TO THE BEST OF MY KNOWLEDGE AND BELIEF, IT IS TRUE, CORRECT AND COMPLETE" ).

  5. Since tax examiners are not expected to be handwriting experts, Section 301.6064-1 of the Regulations allows the Service to presume that the signature on a return, statement, or other document is the true signature of the person who signed the document.

    Note:

    A check mark ("✓" ) or "X" used to designate where the taxpayer should sign the return is not considered a valid signature.

  6. Process an unsigned Form 8752. See IRM 3.11.249.7.1, Unsigned Returns for additional information.

  7. The following types of signatures are not valid for Form 8752, Required Payment or Refund Under Section 7519:

    • Faxed signatures

    • Electronic signatures

    • Docusign signatures

    • Typed font signatures

  8. Only one correspondence attempt is required for a signature.

Unsigned Returns

  1. If a signature is missing, correspond:

    Note:

    See IRM 3.11.249.6.2(2) for returns that are incomplete and appear to be duplicate filings.

    Unsigned Returns

    If Then
    The return is not signed on the line designated for the Form 8752 signature, or
    1. Edit CCC "U" on the return.

    2. Attach Form 3696, Correspondence Action Sheet, (or other approved Correspondence Action Sheet) to the return.

    3. Continue editing.

    The jurat is not present on the line designated for the Form 8752 signature (non-standard return), or
    1. Edit CCC "U" on the return.

    2. Attach Form 3696, Correspondence Action Sheet, (or other approved Correspondence Action Sheet) to the return.

    3. Continue editing.

    Only the Entity information is present and there are no attachments containing tax data,
    1. Edit CCC "U" on the return.

    2. Attach Form 3696, Correspondence Action Sheet, (or other approved Correspondence Action Sheet) to the return.

    3. Continue editing.

     

Paid Preparer Section

  1. The Paid Preparer section is located below the Signature area at the bottom of Form 8752, Required Payment or Refund Under Section 7519.

Preparer Tax Identification Number (PTIN)

  1. The Preparer Tax Identification Number (PTIN) is located to the right of the Preparer's Signature in the PTIN box (Preparer's SSN or PTIN box for 2009 and prior) at the bottom right corner of Form 8752.

  2. No action is required on amended returns.

  3. The valid PTIN begins with the alpha "P" followed by an eight-digit number (e.g., PXXXXXXXX). Circle the PTIN if invalid, all zeros or all nines.

  4. The Preparer's Social Security Number (SSN) is a nine-digit number. Circle the SSN if invalid, all zeros or all nines.

Firm's Employer Identification Number (EIN)

  1. The Firm's EIN (Preparer’s EIN for 2009 and prior) is located below the Preparer’s PTIN box (Preparer's SSN or PTIN box for 2009 and prior) at the bottom right corner of Form 8752.

  2. No action is required on amended returns.

  3. The Firm's EIN (Preparer’s EIN for 2009 and prior) is a nine-digit number. Circle the EIN if all zeroes or all nines.

Preparer Phone Number

  1. The Preparer’s Phone Number is located below the Firm's EIN (EIN for 2009 and prior) at the bottom right corner of Form 8752.

    Preparer Phone Number

    If Then
    The return is amended, No action required.
    The Preparer’s Phone Number is more than 10 digits, No action required.
    The Preparer’s Phone Number is illegible or less than 10 digits, Circle the Phone Number.

     

Unprocessable Procedures

  1. This section describes what constitutes unprocessable conditions, as well as the criteria required and variety of options available for making Form 8752, Required Payment or Refund Under Section 7519, processable.

Unprocessable Conditions

  1. Even though a return may be considered valid for filing and timeliness purposes, it may not be processable. It is unprocessable if:

    • The name is illegible or incomplete so the Name Control can’t be determined

    • The Employer Identification Number (EIN) is other than nine numeric digits (XX-XXXXXXX), and can’t be perfected from information on the return or attachment

    • The address is illegible

    • The taxpayer has combined liability for more than one type of tax

    • The tax data entries on the document are so incomplete, illegible, or contradictory that the tax liability can’t be determined

    • The document has been misblocked. (e.g., Form 720 in a Form 8752 block)

    • Form 8752 has a tax period prior to December 31, 1990 (9012)

    • The return is unsigned

    • The return has only entity data and no other statements, attachments or signature by the taxpayer

    • Any condition set forth as unprocessable in the specific instructions

Processing of Unprocessable Documents

  1. A return must contain specific items before it is considered processable. Examine schedules and other attachments for the information necessary to make the document processable and enter on the applicable return. The specific items needed are:

    1. A Taxpayer Identification Number (TIN);

    2. A legible name (for Name Control);

    3. A legible address;

    4. A valid tax period;

    5. Legible tax data, if tax liability is indicated; and,

    6. Signature.

  2. Returns with unresolved entity problems should be routed to Entity Control for research.

  3. If the return has multiple EINs, an EIN that is missing, "Applied for," "Pending," etc., see IRM 3.11.249.10.2, Entity Perfection - Employer Identification Number (EIN).

  4. If the name is illegible on the return, see IRM 3.11.249.10.3, Entity Perfection - Name Control.

  5. For other unprocessable conditions, initiate correspondence if you have a name and address and research can’t resolve the issue.

    1. Attach Form 3696/Form 3696-A, Correspondence Action Sheet, or other approved Correspondence Action Sheet to the front of the return.

    2. Edit CCC "U" on the return and leave it in the block (or batch).

  6. Route unprocessable returns to the Correspondence Unit using a Form 4227, Intra-SC Reject or Routing Slip, (or other appropriate routing slip) for the HOLD FILE for the following reasons:

    1. The return is being reinput after correspondence or research, but the document is still unprocessable.

    2. The return contains a signature (regardless of whose signature it is), but no entity data. In this instance, research may not produce the entity name because the signature is of a bookkeeper, secretary, etc.

    3. The return contains an illegible signature; however, the first alpha letter of the last name can be determined, but there is no entity data. Research, in this instance, is not necessary and it should be forwarded to the HOLD FILE for filing under the alpha letter of the last name.

      Note:

      For your information, the HOLD FILE will be searched when there is a taxpayer inquiry and it is possible the return may be in this file. The returns held in this file are retired to the Federal Records Center (FRC) in accordance with Document 12990, IRS Records Control Schedules .

  7. Do not send the following unprocessable returns to the HOLD FILE:

    1. Overpaid returns on which the taxpayer replied but it is still unprocessable or on which no reply has been received. Edit Computer Condition Code "X" .

    2. Returns which contain no entity data or signature. If the only entries on the return are figures, give the return to your manager for administrative determination. Likewise, give your manager returns with illegible signatures where the alpha letter of the last name can’t be determined.

    3. Returns falling into the category of undeliverable. This includes returns with incomplete entity that can’t be identified by a signature. These returns should be held for one year and disposed of in accordance with IRM Section 1.10.1, The IRS Correspondence Manual. Do not send to the Federal Records Center.

Processing Unprocessable Returns with Replies

  1. When a signed perjury (declaration) is received, attach it to the return.

  2. Complete the return based on the information submitted by the taxpayer.

  3. If an IRS letter is attached which bears an IRS Received Date stamp, but there is no date stamp on the return, edit the date (as stamped on the attachment) on the return.

  4. If two received dates are on the return, circle the original (earliest) received date, if it was not previously circled.

Processing No Reply Cases

  1. Only one correspondence attempt is required. If a reply is not received after the prescribed suspense period, prepare Form 4227 (or other appropriate routing slip) notating that the taxpayer did not reply to correspondence regarding Form 8752. Route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal, to determine Section 444 election.

  2. Edit CCC "X" on an overpaid return. Do not change the received date.

Rejection of Documents

  1. Reject a document for the following reasons:

    1. The document is for a tax period prior to December 31, 1990.

    2. The document is a type that has not been included in the Automated Data Processing (ADP) system.

    3. The filer sends a blank return and states that he/she is not required to file or does not understand why he/she received the Form 8752, Required Payment or Refund Under Section 7519.

  2. Prepare Form 4227, Intra-SC Reject or Routing Slip (or other appropriate routing slip). Indicate the reason for rejection, and attach the form to the face of the document immediately under the entity data for the following:

    1. Numbered Document - Edit CCC "U" on the document and leave it in the block.

    2. Unnumbered Document - Remove the document from the block and forward it to Receipt and Control.

    Note:

    In addition, if either a blank return as described in (1)c above, or a letter or statement is received from the taxpayer containing any statements for NOT filing Form 8752, make a photocopy of the return (and the letter) and route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.

Disposition of Documents

  1. Blocked and numbered documents that have been coded and edited will be sent to Data Conversion for transcribing.

  2. Unnumbered documents that have been coded and edited will be sent to Receipt and Control for blocking and numbering.

  3. Documents leaving the campus will be sent to Receipt and Control for shipment. Prepare Form 4227 (or other appropriate routing slip) with applicable routing instructions.

  4. Documents not leaving the campus will be sent to the appropriate function in the campus for the required action. This includes items detached from documents to be processed that require correspondence, accounting, or other action. See IRM 3.11.249.5.2 (1) for preparation of Form 4227, Intra-SC Reject or Routing Slip.

General Entity Perfection

  1. This section includes information describing perfection of the entity and address areas of the Form 8752, Required Payment or Refund Under Section 7519. The type of entity present on the return determines the Name Control procedure.

Entity Perfection - General

  1. The entity of a tax return identifies the taxpayer on the Business Master File. The entity area of the return contains the following:

    1. Employer Identification Number (EIN)

    2. Name

    3. Address

    4. Tax Period

Entity Perfection - Employer Identification Number (EIN)

  1. The EIN is a nine-digit number (XX-XXXXXXX) assigned to identify the Form 8752.

  2. The EIN is located to the right of the Name field in the entity area of the return.

  3. Determine the EIN as follows:

    Employer Identification Number (EIN)

    If And Then
    EIN is missing You can determine the correct EIN from the attachments and schedules, Edit the EIN to the proper location.
    The EIN is either a Preparer Tax Identification Number (PTIN) or Individual Taxpayer Identification Number (ITIN) Numbered return,
    1. Enter CCC "U" on the return.

    2. Route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.

    3. Leave return in batch.

    The EIN is either a PTIN or ITIN Unnumbered return,
    1. Remove return from batch.

    2. Route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.

    Multiple EINs are present Numbered return,
    1. Enter CCC "U" on the return.

    2. Route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.

    3. Leave return in batch.

    Multiple EINs are present Unnumbered return,
    1. Remove return from batch.

    2. Route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.

    The EIN contains any of the following conditions and can’t be determined from attachments and schedules;
    • Illegible

    • Missing

    • Other than 9 digits

    • All zeroes or

    • All nines

    Numbered return,
    1. Circle out all illegible EINs, zeroes, or nines.

    2. Enter CCC "U" on the return.

    3. Route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.

    4. Leave return in batch.

    The EIN contains any of the following conditions and can’t be determined from attachments and schedules;
    • Illegible

    • Missing

    • Other than 9 digits

    • All zeroes or

    • All nines

    Unnumbered return,
    1. Circle out all illegible EINs, zeroes, or nines.

    2. Research IDRS. (e.g., Command Code (CC) NAMES or CC EINAD or other Command Code).

    3. If found, edit to the proper location.

    4. If not found, route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.

    EIN is missing, "Applied for," "Pending," etc., and can’t be located on attachments Numbered return,
    1. Enter CCC "U" on the return.

    2. Route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.

    3. Leave return in batch.

    EIN is missing, "Applied for," "Pending," etc., and can’t be located on attachments Unnumbered return,
    1. Research IDRS. (e.g., CC NAMES or CC EINAD or other Command Code).

    2. If found, edit to the proper location.

    3. If not found, route to Entity Control following local procedures (e.g., Form 4227 (or other appropriate routing slip)).

    4. See Figure 3.11.249-2, Form 8752, Required Payment or Refund Under Section 7519, with Partial EIN.

     

    Figure 3.11.249-2

    This is an Image: 33586005.gif
     

    Please click here for the text description of the image.

  4. New EIN assigned - If the return has been given a new EIN by Entity Control, underline the Name Control. No further editing of the entity data is necessary. See Figure 3.11.249-3, Form 8752 Illustrating EIN Assigned by Entity Control.

    Figure 3.11.249-3

    This is an Image: 33586010.gif
     

    Please click here for the text description of the image.

  5. Returns with attachments or statements for the following conditions should be routed to Entity Control using Form 13934, Entity Document/C&E Merge Transmittal.

    Note:

    If the return is numbered, edit Computer Condition Code (CCC) "U" and leave the return in the block (batch).

    • Name change requiring a new EIN

    • Return is filed under another EIN

    • Filing requirement was incorrectly established

    • Taxpayer files bankruptcy

Entity Perfection - Name Control

  1. The Name Control consists of four characters or less:

    1. Valid characters are alpha, numeric, ampersand (&), hyphen (-) and blank. However, blanks are only valid at the end of the Name Control.

    2. Disregard the word "THE" in the Name Control only when followed by more than one word.

    Note:

    If an individual and a trade name are present and it can be determined that the trade name is for a corporation or partnership, follow the Name Control procedures for corporations or partnerships.

  2. See Document 7071-A, BMF Name Control Job Aid - For Use Outside the Entity Area, to determine the Name Control.

  3. You must determine the type of entity present on the return because the type of entity determines the Name Control procedures you must use.

    1. Individuals

    2. Corporations

    3. Partnerships

    4. Trusts and Estates

    5. Other organizations

  4. Edit the Name Control as follows:

    1. Name Control

      If And Then
      Able to determine the Name Control,   Underline the Name Control.
      Unable to determine the Name Control, Numbered,
      1. Enter CCC "U" on the return.

      2. Route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.

      3. Leave return in batch.

      Unable to determine the Name Control, Unnumbered,
      1. Research IDRS. (e.g., CC NAMES or CC EINAD or other Command Code).

      2. If found, edit to the proper location.

      3. If not found, route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.

Entity Perfection - "In-Care-Of" Name

  1. An "In-Care-Of" name can be identified by the words "In-Care-Of" , or the symbols "c/o" or "%" (percent).

  2. Ensure the "In-Care-Of" name is in the proper location:

    "In-Care-Of" Name

    If Then
    The "In-Care-Of" name is located on the street address line preceding the street address, No editing is required.
    The "In-Care-Of" name is located above the first name line or below the street address, Arrow the "In-Care-Of" name so it appears below the first name line and above the street address.
    The "In-Care-Of" name is shown on an attachment, Edit the "In-Care-Of" name above the street address beginning with the "%" or "c/o" in the first position.
    The street address for the "In-Care-Of" name is different from the street address of the Form 8752,
    1. Arrow the "In-Care-Of" street address below the "In-Care-Of" name or edit the "In-Care-Of" street address below the "In-Care-Of" name if located on an attachment.

    2. Circle the street address and input TC 014.

    3. Notate "TC 014" in the upper left margin.

     

    Note:

    Always circle the "In-Care-Of" symbol ("c/o" or "%" ) if it is present with an address. Do not use the ampersand (&) and the percent sign (%) when editing address information.

  3. A change in the "In-Care-Of" name can be determined by the following:

    • An indication that the "In-Care-Of" name is changed (e.g., the taxpayer crossed-out the original "In-Care-Of" name and added the new name or has entered a new "In-Care-Of" name in brackets).

    "In-Care-Of" Name

    If Then
    An "In-Care-Of" name is changed but there is no indication of an address change,
    1. Edit the "In-Care-Of" name as shown above.

    2. Continue editing the return.

    An "In-Care-Of" name is present and there is an indication of an address change,
    1. Edit the "In-Care-Of" name as shown above.

    2. Correct the address.

    3. Continue editing the return.

     

Entity Perfection - Domestic Addresses

  1. Perfection of the address is necessary when the mailing address (Street or Post Office (PO) Box) is not easily identified.

    Exception:

    Do not perfect the address on amended returns (CCC "G" ).

  2. A business may have two addresses. One is the mailing address and the other is the location address or physical location of the business.

  3. The procedures for perfection of addresses are as follows:

    Domestic Address

    If And Then
    The address contains information other than a street address or P.O. Box,   No perfection is necessary. ISRP will enter the complete address.
    There is an indication on an attachment that the address has been changed,   Edit the new address in the Entity section of the return.
    Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, All the following applies:
    • Mailing address information is the same,

    • No location address is listed on Form 8822/8822-B, Line 7,

    • No entry on Form 8822-B, Lines 8 or 9,

    Take no action and continue processing.
    Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, Any of the following applies:
    • Mailing address information is different,

    • Location address is listed on Form 8822/8822-B, Line 7,

    • An entry is listed on Form 8822-B, Lines 8 or 9,

    Detach Form 8822 (or Form 8822-B) and route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.

    Note:

    Edit the new address to return before routing.

    Both a P.O. Box and street address are shown,  
    1. Notate "TC 014" in the upper left margin.

    2. Input TC 014.

    Two street addresses are shown,  
    1. Underline the second street address.

    2. Notate "TC 014" in the upper left margin.

    3. Input TC 014.

    One street address is shown, The taxpayer changed the address to a P.O. Box,
    1. Notate "TC 014" in the upper left margin.

    2. Input TC 014.

    The city and state are not shown on the return but are shown on an attachment,   Edit the city and state in the Entity section of the return.
    The city and state are not shown on the return or an attachment,  
    1. Research using IDRS (e.g., CC INOLE) or local procedures.

    2. Edit the city and state in the Entity section of the return.

      Note:

      Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

    The ZIP Code is missing or illegible, Is not available from the return or attachments, See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, to determine the ZIP Code.

    Note:

    Edit the three digits followed by "01" of the first ZIP Code listed for the applicable state (e.g., "99501" for Alaska).

    Only the first three digits of the ZIP Code can be determined,   Edit "01" for the fourth and fifth digits.
    It is necessary to edit the street address,   See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, for current Address/Street Abbreviations.
    The address contains information other than a street address or P.O. Box,   No perfection is necessary. ISRP will enter the complete address.

     

  4. Always circle the "In-Care-Of" symbol ("c/o" or "%" ) if it is present with an address. Do not use the ampersand (&) or the percent sign (%) when editing address information.

    Note:

    The "In-Care-Of" symbol is valid for the second name line, but not on the street address line.

  5. The U.S. Postal Service (USPS) established new address requirements for Army Post Office (APO), Diplomatic Post Office (DPO), and Fleet Post Office (FPO) addresses. If the old address appears, convert to the new state code abbreviation based on the ZIP Code (e.g., APO New York, NY 091XX would be converted to APO AE 091XX). APO/DPO/FPO addresses are considered domestic addresses. Refer to conversion chart below:

    APO/DPO/FPO Address

    Address State Code Abbreviation ZIP Code
    APO/DPO/FPO AA 340XX
    APO/DPO/FPO AE 090XX - 098XX
    APO/DPO/FPO AP 962XX - 966XX

     

Entity Perfection - Foreign Addresses

  1. A foreign (international) address is any address that is not in the 50 states or the District of Columbia.

  2. Returns with APO, DPO, and FPO addresses are considered domestic addresses.

  3. Route returns with a foreign or an American Possession address to the Ogden Submission Processing Campus (OSPC) for processing. Prepare Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform the taxpayer that the return has been sent to OSPC.

  4. Returns with addresses in the following U.S. Possessions/Territories are considered foreign for processing purposes but are edited in the same way as domestic addresses.

    1. A two-character alpha code must be edited for the U.S. Possession/Territory name.

      U.S. Possession/Territory

      U.S. Possession/Territory Abbreviation
      American Samoa AS
      Federated States of Micronesia FM
      Guam GU
      Northern Mariana Islands MH
      Marshall Islands MP
      Palau PW
      Puerto Rico PR
      Virgin Islands VI

       

    2. A ZIP Code must be present for U.S. Possessions/Territories. Edit the appropriate ZIP Code if one is not provided. See Exhibit 3.11.249-5, U.S. Possessions/Territories and ZIP Codes.

  5. All other foreign addresses are edited the same as a domestic address with the following exceptions:

    1. The foreign country must be the last entry in the address.

    2. Circle the foreign country and edit the country code preceded by a “/” and followed by “/$” (e.g., “/GM/$ is edited for Germany). See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, for official foreign country codes.

    3. A unique country code will be edited for returns filed with an address in Canada. See IRM 3.11.249.10.7, Province and Country Code - Canada.

      Note:

      Coding and Editing BMF Tax Returns, Foreign Addresses Job Aid (Number 2324-002) provides examples for editing foreign addresses.

    4. If the foreign address is from Australia, Brazil, Canada, Cuba, Italy, Mexico or The Netherlands, check if the address contains a province, state, or territory.

      Note:

      There may be other countries with provinces, states, and territories not listed above, see Coding and Editing BMF Tax Returns, Foreign Addresses Job Aid (Number 2324-002) for additional information.

      Province, State, or Territory Address

      If Then
      A province, state, or territory name is present,
      1. Circle the province, state, or territory name.

      2. Edit the appropriate abbreviation. See Exhibit 3.11.249-4, Province, Foreign State and Territory Abbreviations

      A province, state, or territory is shown in abbreviated format, Continue editing the return.
      A province, state, or territory name is not present, Continue editing the return.

       

  6. A ZIP Code or state is not required on a foreign address. Foreign addresses use a postal code that is entered before the city or foreign country and is part of the address.

Province and Country Code - Canada

  1. To assist Compliance with workload assignment, returns filed with an address in Canada will be edited using a unique country code based on the province/territory.

    Province and Country Code - Canada

    If Then
    The foreign address contains a Canadian Province/Territory name, or abbreviation shown in the table below,
    1. See table below to ensure the correct Canadian Province/Territory is present or edited to the return.

    2. Circle the country name.

    3. Edit the appropriate country code based on the province/territory preceded by a "/" and followed by a "/$" as the last entry in the address.

    The foreign address does not contain a Canadian Province/Territory name or abbreviation shown in the table below,
    1. Circle the country name.

    2. Edit the country code "/CA/$" as the last entry in the address.

     

    Canadian Province/Territory Abbreviations, Postal Codes, and Canadian Country Codes Table

    Canadian Province/Territory Province/Territory Abbreviation Postal Code Beginning

    Note:

    If the Canadian Postal Code begins with one of the following, use the corresponding Country Code Abbreviation in the right most column.

    Country Code
    Alberta AB T XA
    British Columbia BC V XB
    Manitoba MB R XM
    New Brunswick NB E XN
    Newfoundland and Labrador NL A XL
    Northwest Territories NT X XT
    Nova Scotia NS B XS
    Nunavut NU X XV
    Ontario ON K, L, M, N, or P XO
    Prince Edward Island PE C XP
    Quebec QC G, H, or I XQ
    Saskatchewan SK S XW
    Yukon YT Y XY

     

  2. The rest of the foreign address is edited using procedures in IRM 3.11.249.10.6, Entity Perfection - Foreign Addresses.

Tax Period

  1. Do not edit the tax period if the current year form is used unless the taxpayer indicates on the top of the return that this is not a current year return (e.g., shows a prior year). Programming automatically inserts the current year when there is no ISRP (Integrated Submission and Remittance Processing) entry (and verifies the correct tax rate was used on Line 9a). Generally, Form 8752, Required Payment or Refund Under Section 7519, filers must be for a calendar year.

    Caution:

    Many taxpayers file Form 8752 early (right after the end of their fiscal year) and may use a prior year form. Be aware of the taxpayer writing in the tax period on the top of the form. Failure to do so, may result in Duplicate Filings (DUPFS) Cases in Accounts Management (AM).

  2. The tax period for all prior year returns must be edited. Edit the tax period under the title of the form in YYMM format.

    Example:

    If the election year ends September 30, 2017, the tax period is "1712," not "1709" .

  3. If a prior year form is submitted and the taxpayer does not indicate the tax period, edit "1712" under the title of the form, except when you receive multiple Forms 8752 from the same entity. See Figure 3.11.249-4, Editing of a Prior Year Form 8752.

    Figure 3.11.249-4

    This is an Image: 33586015.gif
     

    Please click here for the text description of the image.

  4. If multiple Forms 8752 from the same entity using the current year form are received, try to find out the correct tax period to edit. Look at the "applicable election year beginning and ending." Make the latest "ending period" the current calendar year and edit prior year tax periods in descending order as can be best determined. See Figure 3.11.249-5, Multiple Forms 8752 from Same Entity with Current Year Form.

  5. If a Form 8752 is received for a future tax period (e.g., if the tax period ending is after the current processing date), follow instructions below:

    1. Edit CCC "U" on the return.

    2. Attach Form 4227, Intra-SC Reject or Routing Slip, (or other appropriate routing slip), check the box for Reject Correction (Rejects), and notate "Early Filed". Rejects will research to determine the correct tax period and edit the tax period accordingly.

    3. Continue processing.

      Note:

      If a remittance is attached, prepare Form 3244, Payment Posting Voucher, and route to Deposit Activity for processing and posting to the taxpayer's account.

    Figure 3.11.249-5

    This is an Image: 33586020.gif
     

    Please click here for the text description of the image.

Centralized Authorization File (CAF) Indicator

  1. Editing of the Centralized Authorization File (CAF) code is no longer required.

  2. The CAF contains the type of authorization that taxpayers give to representatives regarding the taxpayers' accounts. Representatives may submit Form 2848, Power of Attorney (POA) and Declaration of Representative, or Form 8821, Tax Information Authorization (TIA).

    Centralized Authorization File (CAF)

    If Then
    Form 2848 or Form 8821 is attached,
    1. Detach Form 2848 or Form 8821 from the return.

    2. Edit taxpayer name and EIN on Form 2848 or Form 8821, if missing.

    3. Edit received date on Form 2848 or Form 8821

    4. Route Form 2848 or Form 8821 to the Centralized Authorization File (CAF) function.

    5. Edit an action trail in the lower left corner going vertically up the side of the return.

    A "General Power of Attorney" or a "Durable Power of Attorney" or "Tax Information Authorization" is submitted on any document other than Form 2848 or Form 8821,
    1. Take no action.

    2. Leave the Power of Attorney or Tax Information Authorization attached to the return.

    3. Do not route to the CAF function.

     

Received Date

  1. The date a document is received in the Campus or appropriate IRS Office is the date stamped as the "IRS Received Date" .

  2. A received date is required on every Form 8752, Required Payment or Refund Under Section 7519. The due date for Form 8752 is May 15 of the year following the calendar year in which the applicable election year begins.

    Received Date

    If Then
    The return is received within ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the extended due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , The return is considered timely.
    The due date falls on a weekend or legal holiday, The return is timely if postmarked by the first business day following the weekend or legal holiday.
    The IRS Received Date stamp is after ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the legal or extended due date, the postmark date or shipment date is on or before the legal or extended due date, Edit the received date to agree with the postmark date or shipment date.

    Note:

    The postmark date or shipment date includes returns delivered by:

    • U.S. Postal Service (USPS),

    • Private Delivery Services, e.g., Federal Express Corporation (FedEx) or United Parcel Service (UPS), "designated" by the IRS. See IRM 3.10.72, Receiving, Extracting and Sorting, for a list of designated private delivery services, or

    • Returns with a Foreign Postmark.

     

    Caution:

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

    Note:

    For certified mail only - If a postmark is not present, look for an “USPS.com Track & Confirm” record that has been attached to the return (should be before the envelope). Use the “Acceptance” date on the record to determine timeliness and follow normal editing procedures. See Exhibit 3.11.249-6., USPS.com Track & Confirm.
    If the “USPS.com Track & Confirm” record is not attached, no action is required.

     

  3. The received date may or may not be stamped on the face of the return.

  4. A valid received date stamp may consist of the following:

    • The word "Received"

    • Month (alpha or numeric)

    • Day (e.g., "1" or "01" )

    • Year (four digits)

    • "Area Office," Campus, "Field Office," "Taxpayer Assistance Center (TAC)" plus the city, location, or functional area within one of these sites (e.g., Compliance Services Collection Operations (CSCO), Examination, Image Control Team (ICT). Correspondence Imaging System (CIS), Accounts Management (AM), etc.).

      Exception:

      Not all IRS offices are designated places for filing, and not all IRS employees are authorized to accept a tax return for processing. If a return contains a received date stamp from other than a Taxpayer Assistance Center (TAC), Lockbox, or IRS campus (Compliance, Accounts Management (AM), or Submission Processing (SP)), circle out the invalid received date and edit the correct received date according to instructions below. For example, returns received by the Taxpayer Advocate Service (TAS) or the IRS Office of Chief Counsel are not properly filed and a received date by that office is not the "IRS Received Date" .

  5. If the received date stamp is not present, or the date is illegible or invalid, edit the received date, in MMDDYY format, in the middle of the first page of the return (in the area between Lines 1 and 6). Edit the received date according to the following priority:

    1. The earliest legible postmark date (U.S. Postal Service, foreign or Private Delivery Service) on the envelope. Rules for using the U.S. Postal Service (USPS) postmark or foreign postmark date are as follows:

      Received Date

      If Then
      An envelope is not attached, Use the postmark date stamped on the face of the return.

      Note:

      When there are multiple returns in one envelope, the envelope is attached to one return and the postmark date is stamped on the other returns.

      A document was returned for insufficient postage, Use the postmark date that coincides with the correct delivery of the return.
      The postmark is missing and the envelope is certified, Look for the “USPS.com Track & Confirm” record that has been attached to the return (should be before the envelope). Use the “Acceptance” date on the record to determine timeliness and follow normal editing procedures. See Exhibit 3.11.249-6., USPS.com Track & Confirm. If the “USPS.com Track & Confirm” record is not attached, no action is required.
      An envelope has both a USPS and private metered postmark, Always use the USPS postmark.
      An envelope has a foreign and private metered postmark, Use the foreign postmark.
      An envelope has two private metered postmarks, Always use the latest private postmark.
      An envelope has only one private metered postmark, Use the private metered postmark.

       

    2. Service Center Automated Mail Processing System (SCAMPS) Digital Date

    3. Revenue Officer’s or other IRS official's signature date

    4. Signature date, if within the current year (unless other information indicates signature date is invalid)

    5. Julian date of the Document Locator Number (DLN) minus 10 days

    6. Current date minus 10 days

  6. Edit the received date as follows:

    Received Date

    If Then
    A timely received date is the only received date stamped on the return, No editing is required.
    Two or more dates stamped on the return,
    1. Use the earliest IRS stamped received date.

    2. Circle out all other dates (handwritten or stamped) not needed for transcription.

      Note:

      Received dates that have been circled out by another function should be treated as if they are not present.

    A Federal return is addressed to the IRS but delivered to a State agency, Use the postmark date as the received date.
    A Federal return is addressed to a State agency, Use the IRS date stamp as the received date.
    The only received date on the return is a Taxpayer Advocate Service (TAS) or Chief Counsel received date, Circle out the TAS or Chief Counsel received date and edit the received date according to instructions.

     

    Reminder:

    If an envelope is attached to the return, check the envelope for remittance. If found, hand carry remittance to manager.

  7. If a return has been faxed to another area of the service and then sent to Submission Processing for processing, do not enter the Enterprise Electronic Fax (EEFax) Date as the IRS Received Date. Enter a Received Date according to normal procedures.

    Caution:

    The EEFax Date can’t legally be used as an IRS Received Date.

Computer Condition Codes (CCCs)

  1. Computer Condition Codes (CCCs) are used to identify a special condition or computation to post to the Master File.

  2. Edit the Computer Condition Code(s) in the upper left margin of the Form 8752, Required Payment or Refund Under Section 7519.

Computer Condition Code "F" - Final Return

  1. Edit CCC "F" when the taxpayer gives a positive indication that they are not liable for filing future returns. Notations such as (but not limited to) the following:

    1. Final

    2. Deceased

    3. Out-of-Business

    4. Liquidation

    5. Exempt under IRC 501(c)(3)

    6. Dissolved

    7. IRC 444 was terminated

      Note:

      In cases regarding Form 8752, any references to a "terminating event" may also apply in determining whether this is a final return.

    8. Taxpayer checked the box on Line C of Form 8752.

    Reminder:

    See IRM 3.11.249.15.3(9) for additional information when the taxpayer checked the box on Line C of Form 8752.

Computer Condition Code "G" - Amended Return

  1. A return is considered Amended based on the following:

    • Words such as "Amended," "Supplemental," "Corrected," or "Additional" are present

    • Any indication from the taxpayer that a previous return was filed

    Note:

    Words such as "Copy" or "Duplicate" are not sufficient indicators and must be accompanied by a statement from the taxpayer that a previous return was filed.

    Caution:

    Form 8752 does not have an Amended box. Taxpayers are advised to file an amended Form 8752 and write "Amended Return" across the top to correct an error in a Form 8752 already filed.

  2. Examine the return for attachments.

    • Do not separate any related attachments from the return that the taxpayer has submitted to explain the reason for the Amended return. This information may be useful to Accounts Management.

    • Detach any unrelated documents and route them to the appropriate function using Form 4227, Intra-SC Reject or Routing Slip, (or other appropriate routing slip). Edit an action trail in the lower left corner going vertically up the side of the return.

  3. Determine if CCC "G" should be edited:

    Amended Return

    If And Then
    There is an indication the return is Amended, Form 3893, Re-Entry Document Control, is attached, Do not edit CCC "G" .
    There is an indication the return is Amended, Form 13596, Reprocessing Returns, is attached, Do not edit CCC "G" .
    There is an indication the return is Amended, None of the above are present, Edit CCC "G" . No other codes may be used with a CCC "G" , except "U" .

    Note:

    Computer Condition Code "3" (No Reply to Correspondence) or any of the Error Resolution System (ERS) Action Codes do not apply to Form 8752 processing.

     

  4. The following data must be edited on all Amended returns:

    1. Name control,

    2. EIN,

    3. Tax period,

    4. CCC "G" ,

    5. Received Date, and

    6. Signature.

  5. Do not edit CCC "G" if the taxpayer clearly indicates that the return is used to submit a subsequent payment or did not include the payment with the original return filed.

    1. Edit CCC "U" on the return.

    2. Prepare Form 4227 (or other appropriate routing slip) and notate on Form 4227, "Research - Missed or Subsequent Payment."

    3. Route to Rejects. They will research to determine if the original return was posted and if the payment was misapplied.

    Note:

    Do not correspond for any missing information.

Computer Condition Code "O" - Manual Refund

  1. CCC "O" is edited when a Manual Refund will be issued and a Form 3753, Manual Refund Posting Voucher, Form 5792, Request for IDRS Generated Refund (IGR), or Form 12857, Refund Transfer Posting Voucher, is attached. Verify that the Name Control, EIN, and tax period on the return is the same as the information on the attached form.

    1. If a completed Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund (IGR), or Form 12857, Refund Transfer Posting Voucher, is attached to the return, verify that the Name Control, EIN, and tax period on the return is the same as the information on the attached form. Edit CCC "O" if the information is the same.

    2. If the data is not the same, refer the return and the attachment to your manager. The manager will send the return and the attached Form 3573, Form 5792, or Form 12857 back to the originating function.

  2. When editing CCC "O" , research IDRS to determine if Transaction Code (TC) 840 (Manual Refund) has posted:

    Transaction Code (TC) 840 (Manual Refund)

    If Then
    TC 840 has posted, Edit CCC "O" and continue processing the return.
    TC 840 has not posted, and Manual Refund is needed,
    1. Edit CCC "U" and route to Rejects with Form 4227, Intra-SC Reject or Routing Slip (or other appropriate routing slip).

    2. Notate "Manual Refund" on Form 4227 (or other appropriate routing slip).

     

  3. A Manual Refund will be issued when the refund is $10 Million or more,

    Reminder:

    See IRM 3.11.249.2.8, Criminal Investigation (CI) Referral, for additional information.

Computer Condition Code "U" - Unprocessable Return

  1. Unprocessable Return. Edit this code when the return is too incomplete or illegible for processing. When CCC "U" is edited, continue perfecting the return to the extent possible. See IRM 3.11.249.9, Unprocessable Procedures, for additional information.

  2. Edit CCC "U" on misblocked and non-ADP returns.

Computer Condition Code "W" - Return Cleared by Statute

  1. Code and Edit is no longer required to edit Computer Condition Code (CCC) "W" .

  2. Statute of Limitations processing does not apply to Form 8752 because the form is considered a required deposit by the taxpayer and not a payment of tax due.

Computer Condition Code "X" - Refund Freeze Code

  1. On no reply cases for a signature, edit CCC "X" on refund returns. This freezes the release of an overpayment (e.g., freezes the module from refunding or offsetting credit out) at Master File.

  2. With other BMF returns, the "X" freeze may permit the Service to comply with the taxpayer's request to transfer a part of the refund applied to another account.

    • This is NOT the case with Form 8752

    • By law, money held in the taxpayer's Form 8752 (escrow) account, or any money earmarked for that purpose, is not permitted to be transferred to another account.

    • For this reason, that we are unable to comply with the official text recommendations made by the BMF Consistency Task Team.

Taxpayer Pre-computed Penalty and Interest (P/I) Code

  1. The pre-computed Penalty and Interest (P/I) Code is used when the taxpayer has paid an amount for penalty or interest ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The P/I Code will allow the computer to compute penalty and/or interest when it normally would not.

  2. Edit Code "1" to the right of the Office of Management and Budget (OMB) number (upper-right corner) on Form 8752 when pre-computed delinquency penalty and/or interest is shown.

Personal Service Corporations

  1. Personal Service Corporations (PSCs) are not required to file Form 8752, Required Payment or Refund Under Section 7519. In the case of a PSC, such corporations must complete Schedule H (Form 1120), Section 280H Limitations for a Personal Service Corporation, to figure the minimum distributions and the maximum deductible amount, if applicable.

    1. If the taxpayer clearly indicates on the return or attachment that they are a PSC, edit CCC "F" on the return and continue processing (unnumbered only).

    2. If a determination can’t be made, route the return for IDRS research using the appropriate command codes (e.g., CC BMFOL).

    Note:

    Other indications that the taxpayer is a PSC are found in the entity information. Some examples are business names which indicate professions in health (e.g., "Dr." present in entity), law, engineering, architecture, accounting (e.g., "Certified Public Accountant (CPA)" present in entity), actuarial science, performing arts, or consulting.

  2. If any of the above occupations are listed, route the return for IDRS research.

  3. If research verifies that the taxpayer is a PSC (Tax Class 6, MFT 02, and Document Code 11, Filing Requirement 19 and TC 054 is present), take the following action:

    Personal Service Corporations

    If Then
    Numbered Return,
    1. Edit CCC "U" on the return.

    2. Route to Reject Correction following local procedures (e.g., Attach Form 4227 (or other appropriate routing slip) and check box for Reject Correction).

    3. Notate on Form 4227"PSC not required to file Form 8752 per Internal Revenue Code (IRC) 444(c)(2)."

    4. Leave return in batch.

    Unnumbered Return,
    1. Edit CCC "F" on the return and continue processing the return.

    2. Notify the taxpayer (e.g., Correspondence Action Sheet (CAS) Letter 3463C, or local procedure), only if they have not notated on the return or attachment that they are a Personal Service Corporation (PSC), they are not required to file Form 8752.

    Note:

    A reply from the taxpayer is not necessary. Also, do not send the return back.

     

  4. If research verifies that the taxpayer is not a Personal Service Corporations (PSCs), continue processing the return.

Perfecting Data on Form 8752

  1. This section provides instructions for perfecting the money amounts, deferral ratios, and other numerical data to be transcribed from Form 8752. See Exhibit 3.11.249-1, Transcription Lines for Form 8752, Required Payment or Refund Under Section 7519, for transcription lines (T lines).

  2. The Form 8752 is used to remit the required payment. The required payment is intended to represent the value of the tax deferral by the owners of those entities using a taxable year other than the required year. The required payment is considered a deposit.

Line 1 - Net Income for Base Year

  1. Accept the taxpayer's amount. Exception:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "X" the entry and edit zero (0).

Line 2 - Applicable Payment Made During Base Year

  1. Accept the taxpayer's amount. Exception:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "X" the entry and edit zero (0).

Line 3 - Base Year Deferral Ratio

  1. Edit a three-digit code (Deferral Ratio) for the allowable deferral percentage on the dotted portion of Line 3 (to the left of the taxpayer’s entry). There are eleven codes. These codes represent deferrals of one to eleven months (e.g., with "083" representing a deferral of one month and "917" for a deferral of eleven months, respectively) and are shown in the chart below, which assumes that the taxpayer’s required year is the calendar year.

    Note:

    Do not put a decimal in front of the deferral ratio number.

    Line 3 - Base Year Deferral Ratio

    Ending Month of
    Elected Tax Year
    Deferral Period
    (Number of Months)
    Deferral Ratio
    (Three-Digit Code)
    November 1 083
    October 2 167
    September 3 250
    August 4 333
    July 5 417
    June 6 500
    May 7 583
    April 8 667
    March 9 750
    February 10 833
    January 11 917

     

    Note:

    Do not "X" the taxpayer's entry on Line 3. Integrated Submission and Remittance Processing (ISRP) should pick up the three-digit code edited on the dotted portion of Line 3.

  2. The "Deferral Ratio" is the three-digit code representing the allowable deferral percentage for the taxpayer’s deferral period. The "Deferral Period" means the number of months that occur between the last day of the elected tax year and the last day of the required tax year.

    • For example, if the taxpayer elected a tax year ending on September 30 and his/her required tax year is the calendar year, the deferral period would be three months (the number of months between September 30 and December 31). If the deferral period is three months, edit "250" as the deferral ratio.

    • Using the same example (e.g., if the required tax year is the calendar year), the deferral period would be two months for an elected tax year ending in October, while the deferral period would be one month for an elected tax year ending in November. (Edit "167" for the deferral ratio for a deferral period of two months. For a deferral period of one month, edit "083" .)

      Note:

      By law (Tax Reform Act of 1986), the "required" tax year for S Corporations is a calendar year. A partnership’s required tax year depends on the tax year of the partners. Statutes may dictate otherwise in circumstances permitting the taxpayer to file fiscal year returns for a legally acceptable business purpose.

  3. Generally, the deferral percentage will not exceed 25%. S corporations and partnerships existing prior to 1986 were permitted to make a IRC 444 election and retain their old taxable year even if the deferral period was more than three months. If the taxpayer claims an amount greater than 25%, but less than 91.7%, accept taxpayer’s amount. If the taxpayer claims more than 91.7%, allow only 91.7%.

    Note:

    Before you lower the rate, multiply Line 1 by the amount shown on Line 3 to make sure the taxpayer used that rate. For instance, if a taxpayer put $1,000 on Line 1 and 83% (percent) on Line 3, but came up with an amount of $83.00, taxpayer did not multiply by 83%, but rather, 8.3%. In this case, you would edit "083" .

  4. The taxpayer may either round the percentage (e.g., put down 8% or 17% or 67%, rather than 8.3% or 16.7% or 66.67%), or carry the percentage to multiple places (8.33% or 16.67% or 66.67%). In either case, you will enter "083" or "167" or "667" .

  5. If the taxpayer enters a percentage that does not approximate the allowable percentages, enter the acceptable code that is:

    1. Lower than the percentage claimed, and

    2. Closest to the percentage claimed (see example below).

      Example:

      If the taxpayer put down 12%, edit "083" . If the taxpayer put down 21%, edit "167" .

    3. If the taxpayer puts down an amount on Line 3 that is less than 6% (percent), correspond using appropriate letter (e.g., Letter 3463C, Letter 118C, etc.) to ask what his/her deferral period is. Edit the appropriate code based on the taxpayer’s response. If there is no response, route to Entity Control to determine the correct deferral period.

    Exception:

    Edit lowest percentage of "083" when taxpayer enters "0" (zero), dash (-), none, N/A, or leaves blank. See instructions in (6), below.

  6. If the taxpayer shows a deferral ratio in the form of a decimal rather than a percentage, convert to a percentage.

    1. Example 1: If the taxpayer enters .17 as the deferral ratio, edit code "167" .

    2. Example 2: If the taxpayer enters .08 as the deferral ratio, edit code "083" .

  7. If the deferral ratio or deferral period (Line 3) can’t be determined from the information provided on the return and attachments (e.g., Line 4 amount divided by Line 1 amount equals Line 3), then correspond using appropriate letter. Enter the appropriate code based on the taxpayer's response. If there is no response, route to Entity Control to determine the correct deferral period.

  8. If the taxpayer checked the box on Line B (which reads, "If this is the entity’s first tax year, skip lines 1 through 10, enter -0- on line 11, and check this box" ), then no editing of an entry to the left on Line 3 is necessary. (Line B is the second line item located immediately beneath the entity portion of Form 8752.)

  9. If the taxpayer checked the box on Line C (which reads, "If this form is being filed to claim a full refund of the net required payment balance because of a terminating event, skip lines 1 through 9a, enter -0- on line 9b, complete lines 10 - 12, and check this box" ), then no editing of an entry to the left of Line 3 is necessary. (Line C is the third line item located immediately beneath the entity portion of Form 8752.) Computer Condition Code (CCC) "F" may be needed. See IRM 3.11.249.12.1, Computer Condition Code "F" - Final Return, for additional information.

Line 4 - Line 1 Deferred Amount

  1. This line is the result of multiplying Lines 1 and 3. Accept the taxpayer's amount.

    Exception:

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

Line 5 - Line 2 Deferred Amount

  1. This line is the result of multiplying Lines 2 and 3. Accept the taxpayer's amount.

    Exception:

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

Line 6 - Applicable Payments Made During the Deferral Period of the Base Year

  1. Accept the taxpayer's amount.

    Exception:

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

Line 7 - If the Entity Had a 12-Month Base Year …

  1. This line can be the result of:

    1. Subtracting Line 6 from Line 5, or

    2. In the case of a short base year, the taxpayer enters an amount based on the applicable payments made during the deferral period of the applicable election year.

  2. Accept the taxpayer's amount.

    Exception:

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

Line 8 - Net Base Year Income

  1. This line can be the result of:

    1. Adding Line 4 and Line 7, or

    2. In the case of a short base year, subtracting Line 7 from Line 4.

  2. Accept the taxpayer's amount.

    Exception:

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

Line 9a - Calculation of Required Payment

  1. This line is the result of multiplying Line 8 by the applicable tax rate. Accept the taxpayer's amount.

    Exception:

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

Line 9b - Required Payment

  1. This line will be either the amount shown on Line 9a or $0, which is the result of multiplying Line 8 by the applicable tax rate.

  2. Accept the taxpayer's amount.

    Exception:

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

  3. The required payment is intended to represent the value of the tax deferral by the owners of those entities using a taxable year other than the required year. Generally, the tax year is a Fiscal Year (FY) ending in September, October, or November. The required payment is considered a deposit.

Line 10 - Net Required Payment Balance

  1. Accept the taxpayer's amount.

    Exception:

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

Line 11 - Required Payment Due

  1. There will be an amount on this line when Line 9b is greater than Line 10.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ put the refund/balance due amount on the wrong line or on both. In that case, "X" out the amount placed on the wrong line or place the amount on the correct line.

Line 12 - Refund Payments

  1. There will be an amount on this line when Line 10 is greater than Line 9b.

    Note:

    Follow local procedures for million dollar refunds, as applicable.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ put the refund/balance due amount on the wrong line or on both. In that case, "X" out the amount placed on the wrong line or place the amount on the correct line.

  3. Refunds of $10 Million or more:

    1. If Line 12 is $10 Million or more, use Computer Condition Code "U" and route to Rejects with Form 4227, Intra-SC Reject or Routing Slip, (or other appropriate routing slip).

    2. Notate "Manual Refund" on Form 4227 (or other appropriate routing slip).

  4. If Line 12 is $10 Million or more and Form 8302, Electronic Deposit of Tax Refund of $1 Million or More, is attached, follow the instructions in (3) a. above. Do not detachForm 8302.

  5. Credit interest will not generate on any Form 8752 refund of any amount at any time. Per Treasury Regulation 1.7519-2T(a)(6)(iii), interest is not allowed with respect to any refund of a required payment claimed on Form 8752. Credit interest can’t be input under any circumstance, including where IRS actions have delayed the issuance of the refund.

  6. A manual refund on a Form 8752 will only be done if the refund is for $10 Million or more.

    Reminder:

    See IRM 3.11.249.2.8, Criminal Investigation (CI) Referral, for additional information.

  7. The 45-Day Jeopardy rules do not apply to Form 8752.

Transfer of Credits

  1. Special to prior year returns - If the taxpayer files prior year returns and the payment(s) posts to oneForm 8752 tax period module, initiate Accounts Management (AM) action to move the money to the correct tax period(s):

    1. Prepare Form 3465, Adjustments Request.

    2. Notate on the Form 3465 (under "Other" ) that the taxpayer filed a prior year return(s) and the payment(s) for the return(s) must be credited to the correct tax period(s).

    3. Attach a photocopy of the return(s) to the Form 3465 and route to Accounts Management (AM) for the appropriate action.

    Note:

    We realize these procedures can be followed by Document Perfection only if the taxpayer makes a notation on the form regarding these circumstances.

  2. Do not move money to another type of tax module (e.g., Form 1120S).

Special Returns

  1. This section contains information about statute returns, amended returns, non-taxable returns with no line entries, foreign returns, and secured returns.

Statute Returns

  1. Statute of Limitations processing does not apply to Form 8752, Required Payment or Refund Under Section 7519, because the form is considered a required deposit by the taxpayer and not a payment of tax due.

Amended Returns

  1. See IRM 3.11.249.12.2, Computer Condition Code "G" - Amended Return, for instructions for processing amended Form 8752.

Non-Taxable Returns With No Line Entries

  1. Non-taxable returns with no line entries usually involve the following returns:

    1. First tax year Form 8752, where form instructions advise the taxpayer to check the box on Line B, skip Lines 1 through 10, and enter "0" (zero) on Line 11.

    2. Final tax year Form 8752, where the taxpayer files to claim a full refund of the net required payment balance because of a terminating event (e.g., election filed under IRC 444 was terminated). Form instructions advise the taxpayer to check the box on Line C, skip Lines 1 through 9a, enter "0" (zero) on Line 9b, and complete the rest of the form.

      Note:

      Computer Condition Code (CCC) "F" may be needed. See IRM 3.11.249.12.1Computer Condition Code "F" - Final Return, for additional information.

Foreign Returns

  1. If the return has an address outside of the 50 states and the District of Columbia (APO, DPO, or FPO address is not considered foreign), follow the procedures below.

    Note:

    The following paragraphs apply to Kansas City Submission Processing Campus (KCSPC) and Cincinnati Submission Processing Campus (CSPC) only.

    1. If numbered return, edit CCC "U" on the return.

    2. Prepare Form 4227, Intra-SC Reject or Routing Slip, (or other appropriate routing slip) and indicate that a Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, should be prepared and the return sent to the Ogden Submission Processing Campus (OSPC).

    3. If unnumbered return, route the return to the Correspondence function for transmittal to OSPC.

    4. If the return is not date stamped, see IRM 3.11.249.11, Received Date.

  2. OSPC only - See IRM 3.11.249.10.6, Entity Perfection - Foreign Addresses, for additional information and continue processing the return.

Secured Returns

  1. Compliance functions (Collection and Examination) secure returns from the taxpayer and prepare returns if the taxpayer does not provide them.

    • Collection returns (e.g., Transaction Code (TC) 59X or Integrated Collection System (ICS) notated on the face of the return) do not apply to Form 8752, Required Payment or Refund Under Section 7519.

    • Compliance (IRC 6020(b)) returns do not apply to Form 8752.

    • Substitute For Return (SFR) prepared by Examination (indicated in the top margin of the return) do not apply to Form 8752.

    Note:

    Collection or Examination will not prepare (nor perform follow-up action regarding) any of these returns.

Transcription Lines for Form 8752, Required Payment or Refund Under Section 7519

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Acronyms and Abbreviations

The table lists commonly used acronyms, abbreviations and their definitions.

Acronyms and Abbreviations

Acronyms and Abbreviations Definition
ADP Automatic Data Processing
AM Accounts Management
AMRH Accounts Maintenance Research
APO Army Post Office
BBTS Batch Block Tracking System
BMF Business Master File
c/o Care of
C&E Code and Edit
CAF Centralized Authorization File
CAS Correspondence Action Sheet
CC Command Code
CCC Computer Condition Code
CDP Collection Due Process
CFR Code of Federal Regulations
CI Criminal Investigation
CIS Correspondence Imaging System
CP Computer Paragraph
CPA Certified Public Accountant
CSCO Compliance Services Collection Operations
CSPC Cincinnati Submission Processing Campus or Cincinnati Submission Processing Center
CTDWA Control-D WebAccess
DLN Document Locator Number
DPO Diplomatic Post Office
DPO Document Perfection Operation
Dr. Doctor
DUPFS Duplicate Filings
EEFax Enterprise Electronic Fax
e.g. For Example
EIN Employer Identification Number
EQSP Embedded Quality Submission Processing
ERS Error Resolution System
etc. Et Cetera
Exam Examination
Fax Facsimile
FedEx Federal Express Corporation
FLC File Location Code
FPO Fleet Post Office
FRC Federal Records Center
FRP Frivolous Return Program
FTF Failure To File
FTP Failure To Pay
FY Fiscal Year
http HyperText Transfer (or Transport) Protocol
ICS Integrated Collection System
ICT Image Control Team
ID Identification or Identity
IDRS Integrated Data Retrieval System
ISRP Integrated Submission and Remittance Processing
IMF Individual Master File
IPU IRM Procedural Update
IRC Internal Revenue Code
IRS Internal Revenue Service
IT Information Technology
KCSPC Kansas City Submission Processing Campus or Kansas City Submission Processing Center
LB&I Large Business and International
MFT Master File Tax
N/A Not Applicable
NDC National Distribution Center
OMB Office of Management and Budget
OSPC Ogden Submission Processing Campus or Ogden Submission Processing Center
P/I Penalty and Interest
PTIN Preparer Tax Identification Number
P.O. Post Office
POA Power of Attorney
PSC Personal Service Corporation
PY Prior Year
R&C Receipt and Control
Rev. Proc. Revenue Procedure
RICS Return Integrity and Compliance Services
RRA98 Restructuring and Reform Act of 1998
SBSE Small Business Self-Employed
SCAMPS Service Center Automated Mail Processing System
SERP Servicewide Electronic Research Program
SFR Substitute for Return
SLA Service Level Agreement
SME Subject Matter Expert
SP Submission Processing
SPDC Submission Processing Design Center
SSN Social Security Number
T Lines Transcription Lines
TAC Taxpayer Assistance Center
TAS Taxpayer Advocate Service
TBOR Taxpayer Bill of Rights
TC Transaction Code
TE Tax Examiner
TEGE Tax Exempt and Government Entities
TIA Tax Information Authorization
TIN Taxpayer Identification Number
TP Taxpayer
TRPRT Tax Return Print
U.S. United States
UCC Uniform Commercial Code
UPS United Parcel Service
USC United States Code
USPS United States Postal Service
W&I Wage and Investment
YYMM Year, Month
ZIP Zone Improvement Plan

 

Note:

The above list may not be all-inclusive.

Potential Frivolous Arguments for Examination Review

Potential Frivolous Arguments for Examination Review

Potential Frivolous Argument Description
Alleged Churches/First Amendment Income from non-religious sources and may claim a vow of poverty.
Altered Form Altering any or all line items with the intent of facilitating non-compliance with the tax laws.
Altered Jurat/Uniform Commercial Code (UCC) 1-207 or UCC 1-308 Return contains income and deductions but the jurat has been altered or stricken. May include reference to UCC 1-207/UCC 1-308 or a statement that the return was not signed under penalties of perjury.
Amended Returns/Form 843 Claim Amended return or a Form 843, Claim for Refund and Request for Abatement, filed to obtain a total refund of all taxes paid in prior years, based on a tax avoidance argument.
C-Filings This frivolous position includes the following four categories:
  1. Files a return claiming various types of deductions, credits, or overpayments/refunds that have no relation to reality and because of their outrageous character, qualify as frivolous returns.

  2. Files a return containing the filer's identifying information but does not request a refund, often lacking sufficient information to determine a tax liability.

  3. Files a return with various types of rambling dialogue and confusing arguments that no one could reasonably view as a good faith attempt to comply with the law.

  4. Files a return that attempts to send some type of message or protest to the IRS, but fails to include sufficient identifying information for the Service to either determine the identity of the taxpayer or correspondent or return address.

Challenges to Authority/Due Process Questions various administrative authorities such as delegation orders, summons authority, privacy act, etc. Argues that they must be afforded a hearing or a trial before taxes can be assessed or before property can be seized.
Challenges to Authority/Title 26 or "law" in Other Documents Argues that Title 26 of the United States Code is not law because it was never enacted as named.
Collections Issues Files frivolous documents contending that various collections issues are invalid (e.g., Offers in Compromise, Collection Due Process Requests, Installment Agreements, Appeals Requests, etc.) because they are not filed or signed by someone with delegated authority. They may have no certificate of assessment attached, do not comply in form or content with a state or local law, are not in a certain format or lack a valid Office of Management and Budget (OMB) number, or other frivolous positions.
Disclaimer Submits a disclaimer stating, "disclaims the liability for the tax due" , making the liability on the return zero.
Fifth Amendment Assertion of the Fifth Amendment right against self-incrimination as a basis for not providing any financial information.
Foreign Income Argues that United States citizens and residents are not subject to tax on their wages or other income derived from sources within the United States, as only foreign-based income or income received by nonresident aliens and foreign corporations from sources within the United States is taxable.
Form 1099-OID (Original Issue Discount) An individual or business files a return reporting false amounts of income (generally "Other" or "Miscellaneous" income) and claims a false amount of income tax withholding approximately equal to the amount of falsely reported income. Although the returns report income, they do not calculate any tax due. Some of the returns have Form 1099-OID attached and some have Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Other false financial instruments may be filed in the place of or in addition to the Form 1099-OID such as Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, promissory notes, bonds, sight drafts, etc.
IRC 861 Business Employment Tax (BMF 861) Argument targets employers and advises them that wages are exempt from withholding. Based on 26 Code of Federal Regulations (CFR) Section 1.861, promoters of this scheme advise employers to stop withholding and paying payroll taxes on their employee’s wages. In addition, some employers file amended payroll tax returns and request refunds of previously paid payroll taxes.
IRS is a Private Organization/Collects Tribute, Not Taxes Argues that the IRS is an entity named the Internal Revenue and Tax Service, Inc., which was incorporated in Delaware in 1933, it is a collection agency for the Federal Reserve Bank, or is part of the United Nations and is clandestinely leading the tax-paying public into a "new world order" .
Not a Person Argues that a taxpayer is not a "person" within the meaning of IRC 7701(a)(14).
Obscene, Vulgar, Harassing Submits documents or other materials indicating that non-filing is due to dissatisfaction with tax policies or taxation in general. Often, this argument is expressed with obscene, vulgar, or crude language and characters in an extremely demeaning manner.
Protest Against Government Action/Inaction Argues that refusal to file or pay is justified because they disagree with government policies or spending plans.
Sixteenth Amendment Argues the Sixteenth Amendment was not properly ratified and therefore the federal government does not have the legal authority to collect an income tax without apportionment.
Straw Men Argues the government has created an entity separate and distinct from the taxpayer - a "straw man" and any tax obligations are exclusively those of the "straw man" .
Taxes are Voluntary/Law Does Not Require Submits a return, amended return or correspondence that argues income taxes are voluntary.
U.S. vs. Long Submits a return with zero money amounts. To explain the zeroes inserted on the form the individual references "U.S. vs. Long" .
Unsigned Returns The individual completes a return but fails to sign. A statement indicating disagreement with the tax system is attached or added to the return.
Valuation Income is not taxable because of the declining fair market value of the dollar, because the dollar is not backed by gold/silver, because the value of services is offset by the value of the labor (barter income), etc.
Zero Returns Submits a return with zero money amounts on all or most of the line items on the form (e.g., IRC 861, Form 2439, OID, and other BMF filings that claim no income and request refunds). See Revenue Ruling 2004-34. A statement is attached claiming there is no section of the Internal Revenue Code that established an income tax liability. The statement may also contain arguments regarding the definition of income. There are several variations on this type of filing such as those bearing the words "nunc pro tunc" and "not liable" .

Note:

Returns having only zeros, no entries, are blank, or indicate "None" , "Not Liable" , etc., with no evidence of frivolous arguments are not to be considered as frivolous returns.

Other All others including those listed in Notice 2010-33 or any later superseding notice. See also http://www.irs.gov/Tax-Professionals/The-Truth-About-Frivolous-Tax-Arguments-Introduction on irs.gov. This category includes non-filer accounts resulting from initial compliance check such as cross-reference Taxpayer Identification Numbers (TINs).

Note:

Frivolous arguments citing "Collection Due Process (CDP)" should be reviewed by Collections for possible referral to Appeals. Refer to IRM 5.19.8, Collection Appeal Rights, for additional information.

Province, Foreign State and Territory Abbreviations

Australia State

Australia State Abbreviation
Australian Capital Territory ACT
New South Wales NSW
Northern Territory NT
Queensland QLD
South Australia SA
Tasmania TAS
Victoria VIC
Western Australia WA
 

Brazil State

Brazil State Abbreviation
Acre AC
Alagoas AL
Amapa AP
Amazonas AM
Bahia BA
Ceara CE
Distrito Federal DF
Espirito Santo ES
Goias GO
Maranhao MA
Mato Grosso MT
Mato Grosso do Sul MS
Minas Gerais MG
Para PA
Paraiba PB
Parana PR
Pernambuco PE
Piaui PI
Rio de Janeiro RJ
Rio Grande do Norte RN
Rio Grande do Sul RS
Rondonia RO
Roraima RR
Santa Catarina SC
Sergipe SE
Sao Paulo SP
Tocantins TO
 

Canada Province/Territory

Canada Province/Territory Abbreviation
Alberta AB
British Columbia BC
Manitoba MB
New Brunswick NB
Newfoundland and Labrador NL
Northwest Territories NT
Nova Scotia NS
Nunavut NU
Ontario ON
Prince Edward Island PE
Quebec QC
Saskatchewan SK
Yukon YT
 

Cuba Province

Cuba Province Abbreviation
Camaguey CG
Ciego de Avila CA
Cienfuegos CF
Ciudad de La Habana CH
Granma (Bayamo) GR
Guantanamo GT
Holguin HO
La Habana HA
Matanzas MT
Municipio Especial Isla de la Juventud IJ
Pinar del Rio PR
Sancti Spiritus SS
Santiago de Cuba SC
(Victoria de) Las Tunas LT
Villa Clara VC
 

Italy Province

Italy Province Abbreviation
Agrigento AG
Alessandria AL
Ancona AN
Aosta/Aoste AO
Arezzo AR
Ascoli Piceno AP
Asti AT
Bari BA
Belluno BL
Benevento BN
Bergamo BG
Biella BI
Bologna BO
Bolzano Bozen BZ
Brescia BS
Brindisi BR
Cagliari CA
Caltanissetta CL
Campobasso CB
Caserta CE
Catania CT
Catanzaro CZ
Chieti CH
Como CO
Cosenza CS
Cremona CZ
Crotone KR
Cuneo CN
Enna EN
Ferrara FE
Firenze FI
Foggia FG
Forli FO
Frosinone FR
Genoa GE
Gorizia GO
Grosseto GR
Imperia IM
Isernia IS
L'Aquila AQ
La Spezia SP
Latina LT
Lecce LE
Livorno LI
Lodi LO
Lucca LU
Macerata MC
Mantova MN
Massa-Carrara MS
Matera MT
Messina ME
Milan MI
Modena MO
Napoli NA
Novara NO
Nuoro NU
Oristano OR
Padova PD
Palermo PA
Parma PR
Pavia PV
Perugia PG
Pesaro-Urbino PS
Pescara PE
Piacenza PC
Pisa PI
Pistoia PT
Pordenone PN
Potenza PZ
Prato PO
Ragusa RG
Ravenna RA
Reggio de Calabria RC
Reggio Emilia RE
Rieti RI
Rimini RN
Roma RM
Rovigo RO
Salerno SA
Sassari SS
Savona SV
Siena SI
Siracusa SR
Sondrio SO
Taranto TA
Teramo TE
Terni TR
Torino TO
Trapani TP
Trento TN
Treviso TV
Trieste TS
Udine UD
Varese VA
Venezia VE
Verbania VB
Vercelli VC
Verona VR
Vibo Valentia VV
Vicenza VI
Viterbo VT
 

Mexico State

Mexico State Abbreviation
Aguascalientes AGS
Baja California Norte BCN
Baja California Sur BCS
Campeche CAM
Chiapas CHIS
Chihuahua CHIH
Coahuila COAH
Colima COL
Distrito Federal DF
Durango DGO
Guanajuato GTO
Guerrero GRO
Hidalgo HGO
Jalisco JAL
Mexico MEX
Michoacan MICH
Morelos MOR
Nayarit NAY
Nuevo Leon NL
Oaxaca OAX
Puebla PUE
Queretaro QRO
Quintana Roo QROO
San Luis Potosi SLP
Sinaloa SIN
Sonora SON
Tabasco TAB
Tamaulipas TAMPS
Tlaxcala TLAX
Veracruz VER
Yucatan YUC
Zacatecas ZAC
 

The Netherlands Province

The Netherlands Province Abbreviation
Drenthe DR
Flevoland FLD
Friesland FR
Gelderland GLD
Groningen GN
Limburg LB
North Brabant NB
North Holland NH
Overijssel OV
South Holland ZH
Utrecht UT
Zeeland SLD

U.S. Possessions/Territories and ZIP Codes

American Samoa (AS)

American Samoa (AS) City American Samoa (AS) ZIP Code
Faga'itua 96799
Leone 96799
Olosega Manua' 96799
Pago Pago 96799
 

Federated States of Micronesia (FM)

Federated States of Micronesia (FM) City Federated States of Micronesia (FM) ZIP Code
Chuuk 96942
Kosrae 96944
Pohnpei 96941
Yap 96943
 

Guam (GU)

Guam (GU) City Guam (GU) ZIP Code
Agana 96910
Inarajan 96917
Merizo 96916
Tamuning 96931
Umatac 96915
Yona 96915
 

Marshall Islands (MH)

Marshall Islands (MH) City Marshall Islands (MH) ZIP Code
Ebeye 96970
Majuro 96960
 

Northern Marianna Islands (MP)

Northern Marianna Islands (MP) City Northern Marianna Islands (MP) ZIP Code
Capitol Hill 96950
Rota 96951
Saipan 96950
Tinian 96952
 

Palau (PW)

Palau (PW) City Palau (PW) ZIP Code
Koror 96940
Palau 96940
 

Puerto Rico (PR)

Puerto Rico (PR) City Puerto Rico (PR) ZIP Code
Adjuntas 00601
Aguada 00602
Aguadilla 00603
Aguas Buenas 00703
Aguirre 00704
Aibonito 00705
Anasco 00610
Angeles 00611
Arecibo 00612
Arroyo 00714
Bajadero 00616
Barceloneta 00617
Barranquitas 00794
Barrio Obrero Station 00935
Bayamon 00956
Boqueron 00622
Cabo Rojo 00623
Caguas 00725
Camuy 00627
Canovanas 00729
Caparra Heights 00920
Carolina 00982
Catano 00962
Cayey 00736
Ceiba 00735
Cerro Gordo 00754
Ciales 00638
Cidra 00739
Coamo 00769
Comerio 00782
Condado 00907
Corozal 00783
Coto Laurel 00780
Culebra 00775
Dorado 00646
Ensenada 00647
Esperanza 00765
Fajardo 00738
Fernandez Juncos 00936
Florida 00650
Fort Buchanan 00934
Garrachales 00652
Guanica 00653
Guayama 00784
Guayanilla 00656
Guaynabo 00965
Gurabo 00778
Hatillo 00659
Hato Rey 00936
Hormigueros 00660
Humacao 00791
Isabela 00662
Jayuya 00664
Juana Diaz 00795
Juncos 00777
La Cumbre 00926
Lajas 00667
La Plata 00786
Lares 00669
Las Marias 00670
Las Piedras 00771
Levittown 00949
Loiza 00772
Loiza Street Station 00936
Luquillo 00773
Manati 00674
Maricao 00606
Maunabo 00707
Mayaguez 00680
Mercedita 00715
Minillas Center 00936
Moca 00676
Morovis 00687
Naguabo 00718
Naranjito 00719
Orocovis 00720
Palmer 00721
Patillas 00723
Penuelas 00624
Ponce 00731
Puerta de Tierra 00936
Puerta Real 00740
Punta Santiago 00741
Quebradillas 00678
Ramey 00603
Rincon 00677
Rio Blanco 00744
Rio Grande 00721
Rio Piedras 00927
Rosario 00636
Sabana Grande 00637
Sabana Hoyos 00688
Sabana Seca 00952
Saint Just 00978
Salinas 00751
San Antonio 00690
San Francisco 00927
San German 00683
San Juan 00936
San Lorenzo 00754
San Sebastian 00685
Santa Isabel 00757
Santurce 00936
Toa Alta 00953
Toa Baja 00949
Trujillo Alto 00976
University 00936
Utuado 00641
Vega Alta 00692
Vega Baja (Box 1 - 9049) 00694
Vieques 00765
Villalba 00766
Yabucoa 00767
Yauco 00698
 

Virgin Islands - U.S. (VI)

Virgin Islands - U.S. (VI) Virgin Islands - U.S. (VI) ZIP Code
Charlotte Amalie 00802
Christiansted 00820
Cruz Bay 00830
Downtown 00840
Frederiksted 00840
Kingshill 00850
Saint Croix 00820
Saint John 00830
Saint Thomas 00805
Sunny Isle 00850
Veterans Annes 00820

USPS.com Track & Confirm

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