3.12.249 Processing Form 8752

Manual Transmittal

November 20, 2017

Purpose

(1) This transmits revised IRM 3.12.249, Error Resolution, Processing Form 8752.

Material Changes

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

(2) IRM 3.12.249.1 - Program Scope and Objectives - Added Internal Controls information as outlined in The Heightened Awareness, Sensitivity, and Understanding of Internal Controls Memo dated September 14, 2016. Moved General Information from IRM 3.12.249.1 to IRM 3.12.249.2. Renumbered remaining subsections accordingly.

(3) IRM 3.12.249.1.1 - Removed Purpose of Code and Edit because the information is contained in Background information (new Internal Controls). Renumbered remaining subsections accordingly.

(4) IRM 3.12.249.1.1 - Background - Added Internal Controls information as outlined in The Heightened Awareness, Sensitivity, and Understanding of Internal Controls Memo dated September 14, 2016. Renumbered remaining subsections accordingly.

(5) IRM 3.12.249.1.2 - Authority - Added Internal Controls information as outlined in The Heightened Awareness, Sensitivity, and Understanding of Internal Controls Memo dated September 14, 2016. Renumbered remaining subsections accordingly.

(6) IRM 3.12.249.1.2 - Removed Purpose of Code and Edit because the information is contained in Background information (new Internal Controls). Renumbered remaining subsections accordingly.

(7) IRM 3.12.249.1.3 - Responsibilities - Added Internal Controls information as outlined in The Heightened Awareness, Sensitivity, and Understanding of Internal Controls Memo dated September 14, 2016. Renumbered remaining subsections accordingly.

(8) IRM 3.12.249.1.4 - Program Management and Review - Added Internal Controls information as outlined in The Heightened Awareness, Sensitivity, and Understanding of Internal Controls Memo dated September 14, 2016. Renumbered remaining subsections accordingly.

(9) IRM 3.12.249.1.5 - Program Controls - Added Internal Controls information as outlined in The Heightened Awareness, Sensitivity, and Understanding of Internal Controls Memo dated September 14, 2016. Renumbered remaining subsections accordingly.

(10) IRM 3.12.249.1.6 - Terms/Definitions/Acronyms - Added Internal Controls information as outlined in The Heightened Awareness, Sensitivity, and Understanding of Internal Controls Memo dated September 14, 2016. Renumbered remaining subsections accordingly.

(11) IRM 3.12.249.1.7 - Related Resources - Added Internal Controls information as outlined in The Heightened Awareness, Sensitivity, and Understanding of Internal Controls Memo dated September 14, 2016. Renumbered remaining subsections accordingly.

(12) IRM 3.12.249.2 - General Information moved here from IRM 3.12.249.1 due to the addition of Internal Controls information. Renumbered remaining subsections accordingly.

(13) IRM 3.12.249.2.1(1) - Corrected the IRM title per feedback during IRM Review.

(14) IRM 3.12.249.2.2(1) and (2) - Moved information from paragraphs (1) and (2) into paragraphs (1) through (5).

(15) IRM 3.12.249.2.4(2) - If/Then Table - First Then box - Corrected acronym for (FRP) from Frivolous Return Processing to Frivolous Return Program. (IPU 17U0402 issued 03-01-2017)

(16) IRM 3.12.249.2.5(3) - Updated IRM 11.3.2.6.1 reference to IRM 11.3.2.7.1 per the updated IRM 11.3.2 version dated January 26, 2017. (IPU 17U0402 issued 03-01-2017)

(17) IRM 3.12.249.2.6(3) - Changed "Caution" to paragraphs (4) and (5) and added bullet lists.

(18) IRM 3.12.249.2.6(5) - Updated IRM 11.3.2.6.1 reference to IRM 11.3.2.7.1 per the updated IRM 11.3.2 version dated January 26, 2017. (IPU 17U0270 issued 02-09-2017)

(19) IRM 3.12.249.2.7(3) - If/And/Then/Table - Reworded the table information per feedback during IRM 3.11.15 Review.

(20) IRM 3.12.249.2.11(3) - Updated IRM titles per feedback during IRM Review.

(21) IRM 3.12.249.2.12(2) - Moved information from this paragraph to new paragraph (3) and (4) per feedback during IRM Review. Renumbered remaining subsections accordingly.

(22) IRM 3.12.249.2.12(3) - Information from IRM 3.12.249.2.12(2) was moved here.

(23) IRM 3.12.249.2.12(4) - Information from IRM 3.12.249.2.12(2) was moved here.

(24) IRM 3.12.249.3.8.3(11) d. - Moved the information into a list to read easier.

(25) IRM 3.12.249.3.8.5(1) - Updated tax year information.

(26) IRM 3.12.249.3.8.5(3) - Updated tax year information.

(27) IRM 3.12.249.3.8.5(4) c. - Updated tax year information.

(28) IRM 3.12.249.3.8.6.6(1) - Changed the information in the Note to a bullet list.

(29) IRM 3.12.249.3.8.6.7(7) b. - Updated tax year information.

(30) IRM 3.12.249.3.8.7(4) f. - Removed "Current Date minus 10 days" per feedback from IRM 3.12.217.

(31) IRM 3.12.249.3.8.8(2) a. - Updated tax year information.

(32) IRM 3.12.249.3.8.11(4) - Moved information from this paragraph to new paragraph (5). Added titles to the letters.

(33) IRM 3.12.249.3.8.11(5) - Information from IRM 3.12.249.3.8.11(4) was moved here.

(34) IRM 3.12.249.3.9(3) - Added Field 01-J (First Tax Year Box) per feedback during IRM Review.

(35) IRM 3.12.249.3.9.3(5) b. Exception - Reworded per feedback during IRM Review. Moved information from this paragraph to new paragraph (6). Renumbered remaining subsections accordingly.

(36) IRM 3.12.249.3.9.3(6) - Information from IRM 3.12.249.3.9.3(5) b. was moved here. Renumbered remaining subsections accordingly.

(37) IRM 3.12.249.3.9.12(5) 3. - Added Field 01-E (CCC) per feedback during IRM Review.

(38) IRM 3.12.249.3.9.12(7) If/Then Table - First Then box - Added "Reject with Action Code 3" per feedback during IRM Review.

(39) IRM 3.12.249.3.9.12(7) - If/Then Table - Second If box - Changed 10 million to 1 million to be consistent with other BMF forms. Submitted Unified Work Request (UWR) 193668 - Annual Maintenance - BMF Form 8752 - Required Payment or Refund under Section 7519 (2018) - Requested modifications to the Check Over One Million and RAW processing.

(40) IRM 3.12.249.3.9.12(8) - Reworded information with Action Code 6 and Action Code 7 for million dollar refunds per Unified Work Request (UWR) 193668 - Annual Maintenance - BMF Form 8752 - Required Payment or Refund under Section 7519 (2018) - Requested modifications to the Check Over One Million and RAW processing.

(41) IRM 3.12.249.3.9.12(9) c. Note - Added IRM reference per feedback during IRM Review.

(42) Exhibit 3.12.249-3 - Acronyms and Abbreviations - Added Internal Controls information as outlined in The Heightened Awareness, Sensitivity, and Understanding of Internal Controls Memo dated September 14, 2016. Renumbered remaining exhibits accordingly.

(43) IRM references updated throughout the IRM.

(44) Exhibits revised throughout the IRM.

Effect on Other Documents

IRM 3.12.249, Error Resolution, Processing Form 8752, dated November 17, 2016, (effective January 01, 2017), is superseded. The following IRM Procedural Updates (IPUs), issued from February 09, 2017, through March 01, 2017, have been incorporated into this IRM: 17U0270 (issued 02-09-2017) and 17U0402 (issued 03-01-2017).

Audience

Wage and Investment (WI) Submission Processing Error Resolution System (ERS) personnel are the intended audience for this IRM.

Effective Date

(01-01-2018)

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 resolving errors made by taxpayers and correcting errors made during campus processing. These instructions apply to the Service Center Replacement System (SCRS) involving corrections made using paper error registers.

  3. Audience: These procedures apply to Wage and Investment (W&I) Submission Processing Error Resolution System (ERS) personnel:

    • Supervisory Tax Examining Assistant

    • Lead Tax Examining Technician

    • Tax Examining Technician

  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

    • Taxpayer Advocate Service (TAS)

    • Submission Processing (SP)

    • Large Business and International (LB&I)

    • Small Business Self-Employed (SBSE)

Background

  1. Error Resolution resolves validity errors, field errors, consistency errors, and math errors on returns using paper error registers. Employees use the paper register (error register) and the return to correct these conditions and when necessary use Integrated Data Retrieval System (IDRS) to research.

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: Enter corrections on the paper error registers for any errors falling out through Service Center Replacement System (SCRS) in Error Resolution.

  2. Program Reports: System control reports are on the Control-D WebAccess (CTDWA) and a general listing of the reports are located in IRM 3.12.38, Error Resolution, BMF General Instructions.

  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.
    Significant Entry Any entry other than zero or blank. There are two consecutive blanks between significant characters.
    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 3.12.249-3, 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)

    • Integrated Automation Technologies (IAT)

    • Submission Processing Design Center (SPDC)

General Information

  1. As an Error Correction tax examiner, you develop your expertise working all types of Business Master File (BMF) programs. As your expertise increases, you are also developing your judgement decisions to a comfort level needed to resolve your cases. In this IRM we have provided instructions, procedures, and guidelines for you to attain that comfort level needed for correcting cases in the Error Correction Program.

  2. This section contains information regarding the purpose, concepts, and instructions for Service Center Replacement System (SCRS) processing of Form 8752, Required Payment or Refund Under Section 7519. This IRM cannot address every possibility that may arise while correcting 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.

  3. The Service Center Replacement System (SCRS) is a term used to refer to the processing of paper register (error register) documents. While Error Resolution System (ERS) is worked on the computer with Integrated Data Retrieval System (IDRS), SCRS documents are corrected on a paper print, by hand, with a pen. The errors appear on computer printed paper error registers. SCRS programs are few in number as programs continue to be moved to ERS each year; the few that remain are generally received in such small numbers that it is considered too expensive to move them to ERS. Despite the low amounts of receipts, these forms are just as important to process correctly as those on ERS.

  4. IRM 3.12.249 is exempt from the BMF Consistency Guidelines (for example (e.g.), indicating diamonds) as shown in other sections of IRM 3.12, Error Resolution.

  5. 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.

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.

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 Taxpayer Advocate Service (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. Business Master File (BMF) Identification Theft is increasing. If a tax examiner in Submission Processing (SP) Error Resolution System (ERS) finds a case with attachments or correspondence indicating the taxpayer is a victim of ID Theft:

    1. Enter Action Code 3 on the error register and reject the record.

    2. Attach Form 4227 (or other appropriate routing slip) and give the return to the lead/manager.

  2. Your lead/manager 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 the purpose of 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 3.12.249-4, Potential Frivolous Arguments for Examination Review.

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

    Frivolous Criteria

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

    Exception:

    If the return shows 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 an Action Code 331) and 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 3.12.249. However, do not circle or void the CCC "U" (or an Action Code) indicating a frivolous return.

     

    Note:

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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 a 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

  4. Prior to faxing confidential information to the taxpayer, review fax procedures contained in IRM 11.3.1.11, Facsimile Transmission of Tax 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 3.12.249.2.2, Taxpayer Advocate Service (TAS).

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. For more information about accepting signed taxpayer documents by fax, see the most recent revision of the IRS Policy for Use of Fax, available at http://irweb.irs.gov/AboutIRS/co/dese/memo/48254.aspx.

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

  3. Error Resolution System (ERS) 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 21.1.3.2.4Additional 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 11.3.1.11, Facsimile Transmission of Tax Information

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. Follow the instructions below for processing CIS returns.

    Correspondence Imaging System (CIS) Criteria

    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. Enter Action Code 3 on the error register and reject the record.

    3. Cancel the Document Locator Number (DLN).

    4. Attach Form 4227Intra-SC Reject or Routing Slip, or Form 10886, Reject Routing Slip, (or other appropriate routing slip) to the return and route to Accounts Management (AM) to secure missing information.

    5. 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, Do not route the return to Accounts Management (AM). Continue processing the return.
    The CIS return does not have a Form 3696 attached The return is incomplete (e.g., missing signature, schedules or forms), Research for a prior posting (TC 150 posted).
    1. If TC 150 is present and the information is the same, cancel the DLN and treat as Classified Waste.

    2. If TC 150 is not present, follow normal correspondence procedures.

     

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. For returns with refund claims of $100,000,000 or more, do the following:

    Caution:

    If there is no indication Code and Edit (C&E) made a copy and sent to CI Referral, then see below.

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

     

  3. Other CI Referral Criteria:

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

     

  4. For all other CI Referral criteria listed in paragraph (3), do the following:

    Caution:

    If there is no indication Code and Edit (C&E) made a copy and sent to CI Referral, then see below.

    1. Make a copy of the return.

    2. Attach Form 4227 to the copy.

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

      Other CI Referral Criteria Routing

      Cincinnati Ogden
      Mail Stop 83G, Criminal Investigation (CI) 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.

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

  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 Submission Processing (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.

Customer Account Data Engine (CADE) 2

  1. The Customer Account Data Engine (CADE) 2 Program Office in Headquarters, is charged with the primary goal to implement a single, modernized programming solution which provides daily processing of taxpayer accounts.

  2. The CADE 2 solution is comprised of several components, to modernize the IRS to a daily processing environment with several Transition States.

  3. The BMF campus cycles are:

    1. Campus Cycle: Thursday - Wednesday

    2. Master File Processing: Friday - Thursday

    3. Notice Review Saturday: Monday (8+ days)

    4. Unpostables: New available Tuesday; Closing Tuesday

  4. BMF transaction posting time frames are outlined as follows:

    1. Transactions will be viewable using CFOL command codes on Saturday following the weekly Master Files processing run on Thursday.

    2. Transactions will be viewable as posted transactions using IDRS command codes on Monday, following the weekly Master File processing run on Thursday.

      Note:

      With the acceleration of the IDRS weekly analysis being performed the weekend directly after the Master File processing on Thursday, transactions will be posted instead of in pending status on Monday.

  5. Cycle posting dates will reflect a format of YYYYCCDD. YYYY will indicate the year. CC will indicate the posting cycle. For IMF transactions, the following values for DD are defined:

    • 01 = Friday

    • 02 = Monday

    • 03 = Tuesday

    • 04 = Wednesday

    • 05 = Thursday

    Note:

    BMF cycle posting dates on BMFOL will continue to reflect YYYYCC. YYYY will indicate the year. CC will indicate the posting cycle. BMF cycle posting dates in TXMOD will reflect a format of YYYYCCDD. The DD value will be 08.

Concepts

  1. The tax examiners applying these instructions must be familiar with the editing procedures in IRM 3.11.249, Processing Form 8752, and the general procedures in IRM 3.12.38, BMF General Instructions. The telephone may be used to resolve questions pertaining to returns that are on the error register in lieu of rejecting those returns for subsequent correspondence action.

    Note:

    Any items that denote a protest should be referred immediately to the Criminal Investigation (CI) Branch.

  2. You are not expected to review or redo the work of the Code and Edit tax examiner. However, if an error or omission made by the tax examiner is noticed while working the error register, enter the correct information on the return and the error register. A complete review of the return is not required. If this section instructs you to do something without telling you how, refer to IRM 3.11.249, Returns and Document Analysis - Processing Form 8752.

  3. This manual is your main source of information. You may also need to research procedures in the following IRMs:

    • IRM 3.24.249, ISRP System, Fiscal Year Required Payments/Form 8752

    • IRM 3.10.72, Campus Mail and Work Control - Receiving, Extracting, and Sorting

Pre-Computed Penalty

  1. Only a ten percent (10%) underpayment penalty can be charged on a Form 8752 account.

    Note:

    Transaction Code (TC) 240 (Miscellaneous) or TC 246 (Form 8752 or Form 1065) penalty may be charged.

    If a penalty is shown on the return, and the notation, "3465 Prepared," (or similar language) does not appear on the return, prepare a Form 3465, Adjustment Request, to request an assessment of the penalty.

  2. On the Form 3465, Adjustment Request, indicate the portion of the remittance which is available for application to the penalty assessment if the return remittance includes an amount applicable to all or part of the penalty. Route the Form 3465 to Accounts Management (AM).

  3. On the error register, enter Computer Condition Code (CCC) "X" in Field 01-E (CCC) to freeze the module from refunding or offsetting.

  4. On the Form 8752:

    • Enter Computer Condition Code (CCC) "X" to freeze the module from refunding or offsetting.

    • Notate "3465 Prepared" (or similar language).

  5. For additional information, refer to IRM 20.1.10, Penalty Handbook - Miscellaneous Penalties.

Statute Control Documents

  1. 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.

Blank Returns, Not Required to File

  1. Taxpayers may send a blank return stating that they are not required to file or don't understand why they are receiving the Form 8752.

  2. Research to ensure that the filer is still on a fiscal year basis. If a fiscal year filer, Form 8752 must be filed, unless:

    1. The entity has a service approved tax year either by automatic consent or letter ruling from National Office (NO) and taxpayer can demonstrate that it continues to qualify.

  3. If a fiscal year filer and 2(a) above does not apply, initiate correspondence. Inform the taxpayer that a partnership or S Corporation must file Form 8752 if it made an Internal Revenue Code (IRC) 444 election to file their tax return on a fiscal year basis instead of the required year basis.

    If after correspondence Then
    The taxpayer replies and indicates that he/she is not required to file because he/she meets the conditions in 2(a) above, and can demonstrate that it continues to qualify,
    1. Prepare Form 4227, Intra-SC Reject or Routing Slip, or Form 10886, Reject Routing Slip,

    2. Route to Entity Control following local procedures to verify the taxpayer's filing requirement.

    3. Void the blank return.

    The taxpayer replies and indicates that he/she is not required to file and does not offer an explanation,
    1. Void the blank return.

    2. Prepare Form 4227 or Form 10886, Reject Routing Slip, (or other appropriate routing slip) notating on it that the taxpayer provided no explanation why he/she is not required to file a Form 8752.

    3. Attach a photocopy of the reply to the Form 4227 and route to Entity Control following local procedures to determine Section 444 election.

    The taxpayer does not reply,
    1. Void the blank return.

    2. Prepare Form 4227 or Form 10886, Reject Routing Slip, (or other appropriate routing slip) notating on it that the taxpayer did not reply to (Form 8752) correspondence.

    3. Route to Entity Control following local procedures to determine Section 444 election.

  4. If the taxpayer is no longer a fiscal year filer, do not process the Form 8752. Void the blank return.

Processing Form 8752, Required Payment or Refund Under Section 7519

  1. This section provides background information, descriptions of three sections of the error register, the individual fields and their designations, and procedures for correcting Form 8752, Required Payment or Refund Under Section 7519.

General Information and Error Register Information

  1. The paper register (error register) is the physical representation of the tax return and any errors that have been identified. It is essentially a printed form of the data input from the return, and appears in a standardized format which is used for nearly every type of Service Center Replacement System (SCRS) program. Data fields are designated with letters of the alphabet. Each section is designated with the section number.

  2. The Error Register contains three sections (Section 01, Section 02, and Section 03 (Address Data)). The money fields (Field 01-A (Remittance), and all fields in Section 02, except Field 02-C (Deferred Ratio)), will be entered as dollars and cents.

  3. Errors appear much differently on paper registers than they do in ERS (error codes). Most errors can be located by an asterisk (*) appearing to the immediate left of the Field Designator. Some are special errors that require unique treatment. Errors can occur anywhere in every section except for the Header Section. Research IDRS using Command Codes (e.g., NAMEE, NAMEB, INOLES, ENMOD, ENREQ, etc.) can be used to correct some Entity errors.

  4. Form 8752 is filed by partnerships (Form 1065, U.S. Partnership Return of Income) and S Corporations (Form 1120S, U.S. Income Tax Return for an S Corporation) who made the IRC 444 election to file their income tax return on a year other than the required year. Partnerships and S Corporations use Form 8752 to figure and report the payment required under IRC 7519 or to obtain a refund of net prior year payment(s). A partnership or S Corporation must file Form 8752 if it made a 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 a IRC 444 election is in effect, including the first tax year the IRC 444 is made, is an "applicable election year" .

  5. Taxpayers electing a IRC 444 election must file Form 8752 even if the required payment is zero (0). Taxpayers must make a required payment for the applicable election year if more than $500 or the required payment for any prior tax year was more than $500.00. The required payment represents the value by the tax deferral of owners of those entities for a taxable year other than the required tax year. Generally, for an S Corporation, the tax year resulting from a IRC 444 election ends 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.

  6. Due Date:Form 8752 must be filed and required payment made on or before May 15 of the year following the calendar year in which the applicable election year begins. See IRM 3.12.249.3.8.8, Field 01-G, Penalty and Interest (P/I) Code, for additional information.

Tax Codes

  1. The following is a chart of Tax Class, Document Code, and MFT for Form 8752.

    Tax Codes

    Item Description
    Tax Class 2
    Document Code 23
    MFT Code 15

     

Action Codes (ACs)

  1. Action Codes (ACs) are used to correct errors on the paper register (error register). Every correction made on an error register or reject register must have an Action Code (AC). The Action Code signifies to the computer what action should be taken. Using Action Codes are similar to correcting an error screen on the computer, though the process is not as instantaneous.

  2. Each AC has a different purpose. Only one AC may be entered at any time. If two different Action Codes are used, the record will loop with no corrections made. If incorrect data is present in addition to non-correctable data, the incorrect data should be corrected first. The error register will then loop, and further actions can be taken at that time. No other AC can be used with Action Codes 0, 1, 2, 3, or 7. If incorrect data is present, it must be corrected with Action Codes 4, 5, or 6, before AC 1 is used. Individual descriptions of the valid Action Codes for most error registers are provided below.

  3. Action Code 0 is used to indicate that the data in the record is correct and that the computer's computations should be disregarded. The taxpayer's figures must be verified before using this Action Code. This code should never be used unless the correct tax and data are printed in the error register. Action Code 0 will accept a record as transcribed and send the record to Martinsburg Computing Center (MCC). Action Code 0 is written to the left of Section 01.

  4. Action Code 1 is used in conjunction with Taxpayer Notice Codes (TPNCs), to issue math error notices. When the data in the record is correct, but the taxpayer's computations are incorrect ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ a TPNC will be sent to inform the taxpayer of their error. This code may not be used if an amount field has a transcription error or if a field validity error is present in any field of a section. No other AC may be used in the same correction attempt. All validity errors must be corrected before Action Code 1 can be used; otherwise, the record will loop. Action Code 1 and the correct TPNC are written to the left of Section 01, and a working trail is left in the upper left-hand corner of the return.

  5. Action Code 2 is used to delete a rejected record from processing. It can’t be used on a raw register. Only Rejects will use AC 2. AC 2 is written to the left of Section 01.

    Note:

    This action code is NOT used in Form 8752 processing.

  6. Action Code 3 is used to reject a record when it is unprocessable. Use of AC 3 will force the record to the reject register. It must never be used on a record already in reject status. When using AC 3, attach Form 4227, Intra-SC Reject or Routing Slip, Form 10886, Reject Routing Slip, (or other appropriate routing slip) stating why the return is being rejected. Any of the following types of returns can be unprocessable.

    1. A return or other document with illegible or missing necessary data.

    2. A return or other document with required correspondence items with uncorrectable asterisks. All errors indicated by asterisks that can be corrected must be corrected before sending a return or document to Rejects for required correspondence.

    3. A return or other document that can’t be processed by the program under which it was blocked and which must be processed with a Document Locator Number (DLN) for a different program.

    4. An amended or substitute return where the original return is not available.

    Note:

    Never use Action Code 3 on a reject register. See Action Code 9.

  7. Action Code 4 is used to delete a section from a record. This AC is used when information has been erroneously or unnecessarily entered into a section, and the entire section is not needed for processing. Each section is indicated on the error register and will appear as the first two digits on the first line of print for each section. All sections can’t be deleted; therefore, a record with only one section can’t have an AC 4 correction. It cannot be used on certain sections, such as Section 01, which are required for processing. AC 4 is written to the left of the section to be deleted.

  8. Action Code 5 is used to add a section to a record when the section was not transcribed. The AC is written in the space below the last printed section of the error register. Enter Action Code 5 on the error register to the left of the added section. The section number, alpha field designator(s), the data for the added field, and the applicable field breaker (use a comma (,) for a positive amount and a pound sign (#) for a negative amount) follow Action Code 5 in the order that they normally appear in the section. Enter only those fields with data present.

  9. Action Code 6 is used to change information in a field or fields of a section within the record. The computer identifies each field of a section with an AFD and prints the AFD before the field on the error register. The AC is written to the left of the section in which there is a field that requires correction. To correct an invalid field:

    1. Draw a line through the incorrect field data.

    2. Write the correct information directly above the lined out field. Use all capital letters and write as clearly and legibly as possible.

      Note:

      Use special symbols to change the sign. A positive amount is written with a comma (,) and a negative amount is written with a pound sign (#).

    Any number of fields may be changed in the section at the same time. AC 6 can also be used more than once; if invalid fields appear in multiple sections, the AC should appear to the left of each section in which there is a field that requires correction. If the name control (a fixed-length field) contains fewer than four characters, every position must be accounted for by editing the number of blanks and encircling it in front of the remaining name control characters.

  10. Action Code 7 is used to indicate that the data on the error register is correct and that no action is necessary. AC 7 may not be used with any other Action Code. All corrections requiring Action Codes 4, 5, and 6 must be done before Action Code 7 may be used. This AC may be used to clear a record which has been sent to the error register for one-time review. If information for a particular section was not input, the section may be generated for review with an asterisk before the section number. Use AC 7 to clear this item if no error exists.

    Note:

    Be cautious when determining whether to use AC 7. If there is another error in the error register, and AC 7 is mistakenly used, the register will loop and return to ERS with the original error still requiring correction. AC 7 will not make any error condition "go away" and therefore should be used sparingly.

  11. Action Code 9 is used to re-reject a reject loop register for correspondence or other suspense action. Action Code 9 is written to the left of Section 01.

    1. This code is used to prevent a reject loop record from reprint each time the loop is run, if it is clear that the record is not ready for correction.

    2. Action Code 9 is valid for reject loop only. It is not valid for raw rejects or for error registers.

      Note:

      For Form 8752 processing, this action code and Action Code 3 are used similarly, except Action Code 9 is used with reject registers.

  12. Enter Action Codes 0, 1, 2, 3, and 7 on the error register to the left of Section 01.

  13. Enter Action Codes 4, 5, and 6 on the error register to the left of the appropriate section number.

Invalid Correction Attempt - Error Reason Code "AA"

  1. If an invalid correction is made to an error register, the error will return to be corrected again. When this happens, it is called a "loop" error register. Error Reason Code "AA" will print on the loop error register. The "AA" is simply for information.

  2. Correct the error register as if no prior attempt at correction has been made.

Integrated Submission and Remittance Processing (ISRP) Error

  1. ISRP Error is an error that has been identified by the Integrated Submission and Remittance Processing (ISRP) edit run.

  2. The ISRP Error Indicator is printed to the left of the section number. This error will appear on the error register as shown in the following table:

    Integrated Submission and Remittance Processing (ISRP) Error

    ISRP Error Indicator Type of Error Error Explanation
    #1 Split screen transmission Key Verifier changed four or more digits of Taxpayer Identification Number (TIN), or the Original Entry (OE) Operator (data transcriber) entered a required section as "missing" .
    #2 Invalid section ending point Invalid section ending point
    #3 Invalid field length Invalid field length
    #4 Questionable section The ISRP operator input the same section more than once. The computer program will drop all duplicate sections and display the first one encountered on the error register.

     

  3. All fields of a section must be examined when this condition exists. If Section 01 of a return is error coded, also examine the tax base data section for errors to insure the return data is for the taxpayer whose name is in Section 01.

  4. Even though one or more sections of a record are error coded, the validity and consistency checks necessary for the record are made for all sections. Line out each incorrect field, and enter the correct data. Use Action Code 6. If the record is correct as it appears on the error register, enter Action Code 7 on the error register.

Terminus Error

  1. A Terminus Error results when:

    1. A non-numeric character appears in a numeric field, or

    2. The format of the section is incorrect.

  2. When this error is present, two asterisks will appear to the immediate left of the section number.

  3. Correct a Terminus Error as follows:

    1. Compare the return with the error register.

    2. Assure that any fields already containing data are correct. Correct or reject as applicable.

    3. Enter data in any blank fields that should contain data.

  4. If data is correct on the error register, re-enter a field, using Action Code 6 to send the record to good tape.

Field Validity Error

  1. Field Validity Errors are the most common type of errors.

  2. A Field Validity Error appears with an asterisk (*) to the immediate left of the field that is in error. All fields will be printed on the error register. Some fields must contain data, and if they are blank, they are invalid. The field will be in error if:

    1. An invalid character is present in a field;

    2. The field is otherwise incomplete or invalid; or

    3. A math error is present.

  3. Correct a Field Validity Error as follows:

    1. Compare the return with the error register;

    2. Line out the incorrect field, and enter the correct data immediately above the lined-out data; and

    3. Enter Action Code 6 on the error register.

    4. In some cases, a Taxpayer Notice Code (TPNC) must be sent, or another action must be taken.

    Note:

    Use special symbols to change the sign. A positive amount is written with a comma (,) and a negative amount is written with a pound sign (#).

  4. There are some fields which are asterisked (on the raw only) for a cursory review. These may be cleared with Action Code 7 if there are no other errors present.

Section 01 Fields and Correction Procedures

  1. This section provides field criteria, descriptions, and specifications for correcting Form 8752.

  2. Section 01 fields on the Error Register are shown below: Alpha Field Designator (AFD), Title, Field Length, and Location on the Return. See Exhibit 3.12.249-1, Form 8752, Required Payment or Refund Under Section 7519, for additional information. See Exhibit 3.12.249-2, Error Register for Form 8752, for additional information.

    Section 01

    Section 01 AFD Title Field Length Location on the Return
    A Remittance (non-correctable) 11 Green writing
    B Name Control/Check Digit 4 Box entitled Name of Partnership or S Corporation
    C Employer Identification Number 9 Box entitled Employer Identification Number
    D Tax Period 6 Center of return above Name line or edited tax period to the left of the Office of Management and Budget (OMB) Number (No.)
    E Computer Condition Code 10 Upper left margin of return
    F Received Date 8 Middle of return
    G Penalty and Interest Code 1 Right of OMB Number (No.)
    H Partnership/S Corporation Indicator 1 Right of Page 1, Form 8752, "Check Applicable Box to Show Type of Taxpayer"
    I Centralized Authorization File (CAF) Indicator 1 Right lower corner
    J First Tax Year Box 1 Box B
    K Terminating Event Box 1 Box C
    L Short Base Year Box 1 Box D
    M Entity Underprint Code 1  
    N Taxpayer Notice Code 6 Left margin of return near Name area

     

Field 01-A, Remittance
  1. Field 01-A (Remittance) can’t be changed in Error Resolution. If the amount is incorrect, treat the return and related error register as unprocessable. Reject with Action Code 3, and prepare Form 4227, Intra-SC Reject or Routing Slip, or Form 10886, Reject Routing Slip, (or other appropriate routing slip) to explain the error or follow local procedures. Rejects will prepare Form 3893, Re-Entry Document Control, after corrective action has been taken.

  2. If a remittance amount is present, the received date must be present. See IRM 3.12.249.3.8.7, Field 01-F, Received Date.

Excess Remittance Returns
  1. Rejects will determine the proper application of an excess remittance through research, correspondence, or other existing procedures.

  2. When the Reject tax examiner determines that the excess remittance should be applied to a different tax class or module, enter Computer Condition Code (CCC) "X" on the return and the error register. This code will freeze the tax module from refunding or offsetting by generating a Transaction Code (TC) 570.

  3. The tax examiner will prepare Form 3465, Adjustment Request, to indicate the amount and module in which the credit should be applied.

  4. See IRM 3.12.38, BMF General Instructions, if additional information is required.

Field 01-B, Name Control
  1. Field 01-B (Name Control) must have 1 to 4 characters. If the name control contains fewer than four characters, every position must be accounted for by editing the number of blanks and encircling it in front of the remaining name control characters. The name control and check digit each have their own tests for validity.

    Note:

    A check digit may be seen on a 2010 form revision and prior year form revision.

  2. A check digit will always be your first correction choice. It is invalid if:

    1. The 1st and 2nd positions are not blank.

    2. The 3rd and 4th positions are not letters.

    3. The letters E, G, or M are present.

  3. The check digit is derived by a mathematical computation performed by the computer on the Employer Identification Number (EIN). It is present on mail labels provided by the IRS and is only used when that mail label is present. To correct, refer to the check digit on the label.

    1. Correct any transcription errors by lining through the entry in Field 01-B (Name Control) and editing an encircled "2," followed by the two-letter check digit from the mail label.

    2. If the check digit is correct but is asterisked, check for transcription errors in the EIN. Correct the EIN in Field 01-C (EIN). The computer will recompute and validate the check digit.

  4. A name control will be entered if the check digit is not available. It is invalid if:

    1. The 1st position is other than a letter or number.

    2. The 2nd, 3rd and 4th positions contain characters other than letters, numbers, ampersands (), hyphens (-), or blanks.

    3. Any character follows a blank.

  5. To correct, line through the entry in Field 01-B (Name Control) and enter the correct name control above it. If the name control contains fewer than four characters, every position must be accounted for by editing the number of blanks and encircling it in front of the remaining name control characters.

  6. To determine the correct name control, follow the guidelines in Document 7071-A, Name Control Job Aid - For Use Outside of the Entity Area.

  7. If the transcribed name control does not match the name control for the transcribed EIN on the Entity Index File (EIF), there will be an underprint to Field 01-B (Name Control).

  8. The name control underprint will be removed when the following occurs:

    1. The name control underprint and the entry in Field 01-B (Name Control) agree.

    2. Field 01-M (Entity Underprint Code) contains a "1" .

  9. When the name control on the return does not match the name control on the EIF, one of the following has occurred:

    1. The EIN was entered wrong, either by the taxpayer or the IRS.

    2. The name control was edited or transcribed incorrectly.

    3. The name control on the EIF is incorrect.

    4. The taxpayer altered the order of the name on the return in such a way that the name control no longer agrees with the way it appears on the Business Master File (BMF).

    5. The taxpayer’s name changed.

    6. The taxpayer’s identity has changed (e.g., the taxpayer has changed from a partnership to a corporation).

  10. To correct, compare the entries in Field 01-B (Name Control) and Field 01-C (EIN) to the name control and EIN on the return.

  11. If the EIN on the return and the EIN in Field 01-C do not agree, correct Field 01-C to agree with the return.

    1. If the correct name control is in Field 01-B (Name Control), enter a "1" in Field 01-M (Entity Underprint Code).

    2. If the name control in Field 01-B (Name Control) is not correct according to the information on the return, change Field 01-B (Name Control).

    3. If the correction does not agree with the name control underprint, enter a "1" in Field 01-M (Entity Underprint Code).

    4. If the return is an ISRP Remittance Processing return, reject with Action Code 3 and attach Form 4227, Intra-SC Reject and Routing Slip, (or other appropriate routing slip) to Rejects notating, "Move ISRP Remittance Processing Money" .
      Rejects will research Integrated Data Retrieval System (IDRS) using appropriate command codes (e.g., Command Code (CC) BMFOL) to determine if the payment has posted incorrectly. See IRM 3.12.38.5.5, BMF General Instructions, Credit Transfers, for more information.
      If the money is posted incorrectly, prepare a Form 3465, Adjustment Request, or follow local procedures to transfer the money to the correct module.
      On the error register, enter Computer Condition Code (CCC) "X" in Field 01-E (CCC).
      On the Form 8752, enter Computer Condition Code (CCC) "X" and notate "3465 Prepared" (or similar language).

  12. If the EIN on the return agrees with the EIN in Field 01-C, determine why the name control underprint is present. If the name control edited on the return agrees with the name control in Field 01-B (Name Control) then:

    1. Compare the name control underprint with Field 01-B (Name Control) and the name on the return. If it is obvious that the underprint is the correct name control and it was edited wrong on the return, change Field 01-B (Name Control) to agree with the underprint.

    2. If it is not an obvious error, request research per local procedures. (See IRM 2.3, Terminal Response, and IRM 2.4, Terminal Input.) Research, using IDRS command codes.

  13. Determine the correct EIN and name control from the research.

    1. If another EIN is found for the entity on the return, change Field 01-C to the correct EIN and follow the procedures in (10) above.

    2. If the EIN on the return is correct and the taxpayer just rearranged the name on the return, change Field 01-B (Name Control) to agree with the name control on the Entity Index File (EIF).

    3. If the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return.

      Note:

      Do not send Letter 3875C when:
      1. Three or less digits of the EIN are transposed, different or missing, or
      2. Command Code (CC) INOLES indicates the account has been "merged to" or "merged from," or
      3. The TIN on the return is the taxpayer's SSN (check CC INOLEG).

  14. If the EIN on the return is correct but the name control on the Entity Index File (EIF) is not conforming to the acceptable rules for name controlling:

    1. Correct Field 01-B (Name Control) to agree with the name control on the BMF.

    2. Copy Page 1 of the return and notate "Copy - Do Not Process" . Attach any research and route the case to Entity Control following local procedures (e.g., Attach Form 4227 (or other appropriate routing slip). Entity Control will fix the name control, which should stop future unpostables and underprints.

    3. If the EIN on the return agrees with the EIN in Field 01-C, but the name control does not agree with the name on the EIF, attach any research and route the case to Entity Control following local procedures (e.g., Attach Form 4227 (or other appropriate routing slip).

Field 01-C, Employer Identification Number (EIN)
  1. This field has nine positions.

  2. It is invalid if any of the following conditions are present:

    1. It is not nine numeric characters.

    2. It is all nines or all zeros.

    3. If the first two digits are: 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, or 89.

  3. If the EIN is invalid, take the following action:

    1. Compare with the EIN on the return, and correct the error register with Action Code 6, if the number has been incorrectly transcribed.

    2. Search the return and any attachments for a valid EIN if transcribed correctly. If one is found, enter the number on the return, and correct the error register with Action Code 6. If no valid EIN is found, research IDRS using the appropriate Command Code (CC) (e.g., CC EINAD, CC NAMEE, CC INOLE, CC ENMOD, etc.) or follow local procedures.

    3. If it is transcribed correctly, and a valid EIN is not found during the search prescribed above, reject the record to Entity Control following local procedures (e.g., Attach Form 4227 (or other appropriate routing slip) and notate reason for sending to Entity Control).

  4. Reject Correction:

    1. If Entity Control has found the correct EIN, enter it in Field 01-C (EIN).

    2. If Entity Control has assigned an EIN, enter it in Field 01-C (EIN).

Field 01-D, Tax Period
  1. This field contains the ending month and year of the tax period covering the return. The tax period ending is printed, in year-month (YYYYMM) format (e.g., December 31, 2017, is printed 201712).

  2. The field is invalid if:

    1. It is not numeric.

    2. The tax year ending is later than the current date.

    3. The year is before 199012.

    4. The month is not 12.

    5. It is in a format other than YYYYMM.

  3. Determine the tax period by the year (printed) on the face of the tax form (e.g., for the 2017 tax form, the tax period should be "201712" ). For example, if an election year ends September 30, 2017, the tax period is 201712, not 201709. Taxpayers are advised to edit changes on the form to the tax year for prior tax periods.

  4. The tax period may be a calendar year (e.g., 20XX12). Editing is required only if the "applicable election year ending" is other than blank. Circle the taxpayer’s entry and enter the correct tax period.

    1. If the tax period has been changed to an earlier year and the ending period is not December 31, circle the date and edit the tax period, using the procedures described above.

    2. If there are multiple returns from the same entity in a batch and you can’t determine the correct tax period, edit all of them to the current tax period (20XX12). Accounts Management will work the "dup" returns and correct the tax periods.

    3. Editing of the tax period is not required if the current year form is used (e.g., 2017 form).

      Exception:

      The taxpayer makes an indication on the form that the tax period is for a prior year.

    4. If any version of Form 8752 other than the current year form is submitted, edit the current year in the "20XX12" format under the title of the form (unless the taxpayer has indicated the tax period is for a prior year).

    5. If the tax period is in error due to a Statute issue, correct with Action Code 0.

  5. As a result of the Internal Revenue Code (IRC) 7519(b), the rate was adjusted per Section 101(b) of American Taxpayer Relief Act (ATRA) of 2012. Under IRC 7519 (b), the percentage rate is one percent higher than the highest tax rate stated in IRC 1 as in effect at the end of the base year. Under ATRA, the highest tax rate changed from 35% (percent) to 39.6%. Thus the percentage on Form 8752, Line 9a is changed from 36% to 40.6%. The tax rates are as follows:

    Tax Year and Tax Rates

    Tax Year Tax Rate
    2013 and later 40.6% (percent)
    2003 through 2012 36%
    2002 39.6%
    2001 40.1%
    1993 through 2000 40.6%
    1991 and 1992 32%
    1990 29%

     

    Note:

    Make sure the taxpayer used the correct tax rate for the appropriate year on Line 9a.

  6. If a Form 8752 is received for a future tax period (e.g., if the tax period ending is after the current processing date), enter Action Code 3 on the error register and prepare a Form 4227, Intra-SC Reject or Routing Slip, (or other appropriate routing slip) to request Rejects to research for postings.

    If Then
    Current year has posted, Hold in suspense until January of year due.
    Current year has not posted, Process as current year return.

    Note:

    If payments posted to the wrong tax period, follow instructions in See IRM 3.12.38.5.5, BMF General Instructions, Credit Transfers, for more information.

Field 01-E, Computer Condition Code (CCC)
  1. Computer Condition Codes (CCCs) are used to identify a special condition or computation to post to the Master File and are entered in the upper left margin of the Form 8752. CCCs F, G, O, U (on ISRP (Submission Processing) input only), and X are valid for Form 8752 processing.

  2. The field is invalid if CCCs other than those listed above are used. See IRM 3.12.249.3.8.6.1 through IRM 3.12.249.3.8.6.6 for descriptions of the CCCs.

  3. See IRM 3.12.249.3.8.6.7, Field 01-E (CCC) Correction Procedures.

    Note:

    Legislation (2001) extended reasonable cause criteria to Form 8752 filers. You may refer to IRM 20.1, Penalty Handbook, for determining reasonable cause criteria.

CCC "F" - Final Return
  1. Enter 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.

CCC "G" - Amended Return
  1. Enter CCC "G" on return marked "Amended," "Supplemental," "Duplicate," "Corrected," "Additional," or any other positive indication that the taxpayer has filed previously.

  2. Correct all misplaced entries, coding errors, and transcription errors.

  3. Research IDRS (e.g., Command Code (CC) BRTVU, BMFOL, SUMRY, TXMOD, etc.) to make sure it is an amended return. Sometimes the original return may be held up in another area and not posted yet.

  4. If the return is amended:

    1. Delete all fields in Section 01 past Field 01-F (Received Date).

    2. Delete all CCCs except “G” in Field 01-E (CCC).

    3. If Field 01-F (Received Date) is blank, enter the correct received date. See IRM 3.12.249.3.8.7, Field 01-F, Received Date.

    4. Enter Action Code 6 on the error register to the left of Section 01.

    5. Delete Section 02 (except Field 02-C (Deferral Ratio)) using Action Code 6.

  5. If the return is not amended:

    1. Ensure that the Section 01 fields are correct.

    2. Enter Action Code 6 on the error register to the left of Section 01.

    3. Line through the "G" code in Field 01-E (CCC).

    4. Verify the remaining fields for correct data, enter any missing data and correct any erroneous data.

CCC "O" - Manual Refund
  1. Enter CCC "O" if a completed Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund, is attached to the return. These indicate that a pre-settlement manual refund was made.

CCC "U" - Unprocessable Return
  1. Enter CCC "U" on all conditions which cause the return to be unprocessable. Unprocessable conditions are described as follows:

    1. Name illegible, incomplete, or contradictory and is not acceptable for computer processing.

    2. Information is not available on the return or attachments that is necessary for processing the return.

    3. EIN is other than nine numeric digits.

    4. Issuer indicates on return or attachment that the return represents more than one tax period.

    5. Blank returns where the filer states "not required to file," or he/she does not know why they received the Form 8752 (or a similar statement).

CCC "W" - Cleared by Statute
  1. CCC "W" is no longer edited by Code and Edit. This does not apply to Form 8752 processing. 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.

  2. If the tax period is in error due to a Statute issue, correct with Action Code 0.

CCC "X" - Return Settlement Frozen
  1. Enter CCC "X" when taxpayer indicates excess remittance with return or overpayment be applied to another account. Enter CCC "X" in Field 01-E with Action Code 6. This CCC will freeze the tax module from refunding or offsetting by generating a TC 570.

    • 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.

Field 01-E (CCC) Correction Procedures
  1. To correct Field 01-E (CCC), compare the CCC with the code entered on the Form 8752. If it is a transcription error, correct it by lining out the code in Field 01-E (CCC) and writing the correct code above it.

  2. If Form 8752 is coded incorrectly, determine the correct code by referring to the Computer Condition Codes information. Correct the return by lining out the code in Field 01-E, writing the correct code above it, and entering Action Code 6 on the error register.

  3. The field is invalid if Field 01-E contains a "G" and:

    1. There are entries past Field 01-F (Received Date), or

    2. If Field 01-F is blank, or

    3. If Field 01-E (CCC) contains entries other than "G" or "U" (on raw input only).

  4. To correct, determine if the return is an amended return.

  5. If the return is amended:

    1. Delete all fields in Section 01 past Field 01-F (Received Date).

    2. Delete all CCCs except "G" in Field 01-E (CCC).

    3. If Field 01-F (Received Date) is blank, enter the correct received date. See IRM 3.12.249.3.8.7, Field 01-F, Received Date.

    4. Enter Action Code 6 on the error register to the left of Section 01.

    5. Delete Section 02 (except Field 02-C (Deferral Ratio)) using Action Code 6.

  6. If the return is not amended:

    1. Line through the "G" code in Field 01-E (CCC) and enter Action Code 6 on the error register to the left of Section 01.

    2. Verify the remaining fields for correct data, enter any missing data and correct any erroneous data.

  7. To correct, refer to the tax period, computer condition codes, and received date on the return.

    1. Correct all coding errors and transcription errors in Field 01-E (CCC).

    2. Verify that the return is delinquent. If the return is delinquent (e.g., May 24, 2018), enter the received date (in YYYYMMDD format) in Field 01-F. (For example, enter May 24, 2018, as "20180524" .)

  8. The field is invalid if CCC "U" is present on correction processing. The "U" code is used by Code and Edit when a return must be rejected. If it is necessary to reject a return in Error Correction, use Action Code 3.

Field 01-F, Received Date
  1. Field 01-F (Received Date) is invalid if any one of the following conditions are present:

    1. The month (fifth and sixth digits) is other than 01 through 12; or

    2. The day (seventh and eighth digits) is other than 01 through 31 for the months 01, 03, 05, 07, 08, 10 or 12; 01-30 for the months 04, 06, 09 or 11; 01-28 for the month 02; or 01-29 for month 02 during leap year.

    3. The received date is later than the processing date.

    4. An alpha, special character, or blank is present in the field.

    5. The received date is blank with a CCC "G" , "D" , or "R" .

    6. It is blank and the processing date is greater than the year-month of the tax period by more than six months. This condition is valid on the correction run.

    7. It is blank and remittance is significant.

    8. It is blank and the Penalty and Interest Code is NOT blank.

    9. The received date is in a format other than YYYYMMDD.

    10. The received date is earlier than the tax period.

  2. Correct all misplaced entries, coding errors, and transcription errors.

  3. If Field 01-F (Received Date) is invalid, refer to the return to determine the correct received date. Use Action Code 6, line out the received date on the error register and enter the correct date above the lined-out date.

    Received Date Criteria

    If Then
    There are multiple received dates on the return, Use the earliest received date in Field 01-F (Received Date).
    The tax period is correct and there is no remittance, Delete the received date.
    The tax period is correct and there is a remittance amount, Change the received date to the first day of the month following the tax period (e.g., 20XX0101).
    A remittance amount is present in Field 01-A (Remittance), then the received date must be present. If a remittance amount is not present, Determine the received date based on the instructions in (4) below.
  4. Determine the received date using the following priority when one is needed but is not stamped on the return or a valid handwritten received date is not present:

    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 Criteria

      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.

      The postmark is missing and the envelope is certified, 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 procedures.

      • See Exhibit 3.12.249-8, 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, Use the USPS postmark.
      An envelope has a foreign and private metered postmark, Use the foreign postmark.
      An envelope has two private metered postmarks, Use the latest private postmark.
      An envelope has only one private metered postmark, Use the private metered postmark.

       

      Note:

      A private metered postmark is to be considered timely if received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    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

  5. 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 an IRS Received Date. Enter a received date according to normal procedures.

    Caution:

    The EEFax Date can’t legally be used as a received date.

Field 01-G, Penalty and Interest (P/I) Code
  1. Invalid Condition - Field 01-G (Penalty and Interest (P/I) Code) is invalid if any one of the following conditions are present:

    1. It is other than blank or "1,"

    2. It contains a "1" and the received date is not present, or

    3. It contains a "1" and the received date is not within the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. Correction Procedures - Refer to the received date and tax period on the return to determine if the received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. Blank the field if the taxpayer has not computed penalty, interest or the received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8752 must be filed and the required payment made to the Service Center on or before May 15th (of the year following the applicable election year). Therefore, Form 8752 for applicable election years beginning in 2017 are due May 15, 2018. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ following the due date of the return, so the return is delinquent if received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. Enter a "1" if the taxpayer has computed penalty and interest and the received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Enter the received date in Field 01-F (Received Date) if it is not present.

Field 01-H, Partnership/S Corporation Indicator
  1. ISRP transcribes a "1" (Partnership) or "2" (S Corporation) based on the box checked by the taxpayer. If one of the boxes is checked, and Field 01-H (Partnership/S Corporation Indicator) is blank, enter the appropriate code on the error register. If both boxes or neither box is checked, blank the field.

    1. "1" - Partnership box is checked.

    2. "2" - S Corporation box is checked.

Field 01-I, Centralized Authorization File (CAF) Indicator
  1. Field 01-I (Centralized Authorization File (CAF) Indicator) is invalid if it is not one of the following numbers: 1, 2, 3, 4, 7, or blank.

  2. If Code and Edit entered an invalid number, enter one of the following codes in the lower right corner of Form 8752 and correct with Action Code 6:

    CAF Code

    Code Description
    1 The attached Power of Attorney (POA) is for this return and states that one person receives notices and no one receives refunds.
    2 The attached POA/Tax Information Authorization (TIA) is for this return and states that two people receive notices and no one receives refunds.
    3 The attached POA/TIA is for this return and states that one person receives notices and one person receives refunds.
    4 The attached POA/TIA is for this return and states that two people receive notices and one person receives refunds.
    7 The attached POA/TIA is for this return and states that one person can receive refunds but no one can receive notices.

     

  3. If the POA does not authorize refunds or notices, a code is not necessary on the return.

Field 01-J, First Tax Year Box
  1. Form 8752, Box B (First Tax Year Box) is checked for the first applicable year the election under IRC 444 is in effect. No payment is due the first year. When this box is checked, there should not be any amounts in Lines 1 through 10 and a blank or zero on Line 11. Any error indicator will appear when Field 01-J (First Tax Year Box) equals "1" and there is an amount on any other line.

  2. If Field 01-J (First Tax Year Box) was erroneously coded "1," cross out the "1" and correct with Action Code 6.

  3. If any data was erroneously keystroked into Section 02 fields, delete Section 02 with Action Code 4.

  4. If Box B (First Tax Year Box) is checked, and there are amounts in Lines 1 through 11:

    1. Research IDRS (e.g., CC BMFOL or other applicable command code) for a previously filed return.

    2. If research indicates a previously filed return, cross out the 1 in Field 01-J (First Tax Year Box) and correct with Action Code 6.

    3. If research indicates that this is the first applicable election year, correspond with the taxpayer to determine if this return represents the first applicable year or not. Applicable letters include the following:
      Letter 118C, Corporate Return Incomplete for Processing: Forms 1120, 1120 A/S
      Letter 3064C, IDRS Special Letter
      Letter 3463C, Missing Information Request to Process Business Returns

    4. Send Letter 118C (or other appropriate letter) with the following suggested language: "You checked Box B on your Form 8752, indicating that this is the entity’s first tax year. If that is the case, Lines 1 through 10 should be blank and Line 11 should contain a zero. Please inform us as to whether Box B was checked in error, or Lines 1 through 12 were completed in error and we will adjust your return accordingly."

  5. Responses/No Responses to correspondence for Form 8752, Box B (First Tax Year Box):

    1. If the taxpayer's response indicates that this is the first applicable year, delete Section 02 with Action Code 4.

    2. If the taxpayer's response indicates that this is not the first applicable year, cross out the "1" in Field 01-J (First Tax Year Box) and correct with Action Code 6.

    3. If the taxpayer does not respond to correspondence, cross out the "1" in Field 01-J (First Tax Year Box) and correct with Action Code 6.

Field 01-K, Terminating Event Box
  1. This box (Box C) is used the year the IRC 444 election is terminated. If checked, CCC "F" must be present.

  2. If Field 01-K (Terminating Event Box) was erroneously coded "1," cross out the "1" and correct with Action Code 6.

  3. If Field 01-K (Terminating Event Box) was correctly coded, enter Computer Condition Code "F" in Field 01-E (CCC) and correct with Action Code 6.

Field 01-L, Short Base Year Box
  1. Field 01-L (Short Base Year Box) currently is not used for validity or consistency checks.

Field 01-M, Entity Underprint Code
  1. In all cases where there is an underprint of the name control, the record will not go to good tape until the applicable code is in Field 01-M (Entity Underprint Code), or the name control has been corrected to match the underprint.

  2. The underprint in Field 01-B (Name Control), will not clear until either an Entity Underprint Code is entered in Field 01-M or until the name control matches the underprint.

  3. Enter Code "1" if the name control is underprinting and the transcribed name control is correct.

  4. If there is no name control underprint, leave the field blank.

Field 01-N, Taxpayer Notice Code (TPNC)
  1. Taxpayer Notice Codes (TPNCs) can be input only as correction data, using Action Code 1. Put the correct tax to the left of taxpayer’s figures and TPNC in upper left margin of the return (near the Name area).

  2. All invalid conditions must be corrected before Action Code 1 is used.

  3. The codes will appear in this field on the loop (correction run) when another error existed. When this occurs, correct any other invalid condition, but not this field. The use of another Action Code will cause this field to be blanked on the next loop. Correct by using Action Code 1 and the proper TPNC.

  4. The valid TPNCs are as follows:

    Taxpayer Notice Code (TPNC)

    TPNC Explanation
    01 The amount shown on Line 4 was not computed correctly.
    02 The amount shown on Line 5 was not computed correctly.
    03 The wrong percentage figure for this tax year was used in computing Line 9a.
    04 The amount shown on Line 9a or Line 9b was not computed correctly.
    05 The amount shown on Line 11 or Line 12 was not computed correctly.
    90 Fill-in narrative. This math error contains fill-in free form text with maximum of 10 lines, 70 characters per line.

    Note:

    In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the OnLine Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal/language and reduce potential copying/typing incorrect paragraphs/messages in the notices. For a full listing of the programmed TPNC 90 Math Error Codes, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals.dr/sp-portal/bmf.dr/bmf_ers/job_aid.dr/TPNC-90-Math-Error-Code-Job-Aid.doc.

     

Section 02 Fields and Correction Procedures

  1. Section 02 is transcribed in dollars and cents for the applicable fields. All fields (except Field 02-L (Payment Due/Refund Amount)) contain positive (+) amounts only. If the taxpayer listed negative (-) amounts on Field 02-A, Field 02-B, and /or Fields 02-D through Field 02-K, delete with Action Code 6. The computer checked fields in this section will underprint if the taxpayer and computer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Do not bring up the underprint. Send the appropriate TPNC.

  2. Section 02 fields on the Error Register are shown below: Alpha Field Designator (AFD), Title, Field Length, and Location on the Return. See Exhibit 3.12.249-1, Form 8752, Required Payment or Refund Under Section 7519, for additional information. See Exhibit 3.12.249-2, Error Register for Form 8752, for additional information.

    Section 02

    Section 02 AFD Title Field Length Location on the Return
    A Net Income Amount 15 Line 1
    B Applicable Payment Base Year Amount 15 Line 2
    C Deferral Ratio 3 Line 3
    D Line 1 - Deferred Amount
    Line 1 - Deferred Amount
    (Computer)
    15 Line 4
    E Line 2 - Deferred Amount
    Line 2 - Deferred Amount
    (Computer)
    15 Line 5
    F Applicable Payment Deferral Amount 15 Line 6
    G 12 Month or Short Year Amount 15 Line 7
    H Net Base Year Income Amount 15 Line 8
    I Net Base Year Percentage Amount
    Net Base Year Percentage Amount (Computer)
    15 Line 9a
    J Required Payment Amount
    Required Payment Amount (Computer)
    15 Line 9b
    K Net Required Payment Balance 15 Line 10
    L Payment Due or Refund Amount
    Payment Due or Refund Amount
    (Computer)
    15 Line 11 or Line 12
    M Preparer Tax Identification Number (PTIN) 9 Bottom of Form 8752
    N Firm's Employer Identification Number (EIN) 9 Bottom of Form 8752
    O Preparer Phone Number 10 Bottom of Form 8752

     

  3. This section is required unless Field 01-E (Computer Condition Code) contains a "G" , or if Box B (First Tax Year Box), or Field 01-J (First Tax Year Box) is checked. All fields in this section are transcribed from Page 1. Math verification will not be done if the Field 01-D (Tax Period) is invalid.

Field 02-A, Net Income Amount
  1. This field is transcribed from Line 1. Correct all misplaced entries, coding errors, and transcription errors in Field 02-A (Net Income Amount) and correct with Action Code 6.

Field 02-B, Applicable Payment Base Year Amount
  1. This field is transcribed from Line 2. Correct all misplaced entries, coding errors, and transcription errors in Field 02-B (Applicable Payment Base Year Amount) and correct with Action Code 6.

Field 02-C, Deferral Ratio
  1. This field is transcribed from Line 3. The "Deferral Ratio" is the three-digit code representing the allowable deferral percentage for the taxpayer’s elected deferral period. The term "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.

    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 (e.g., deferral ratio to enter is 250)). 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 (e.g., Deferral Ratio to enter is 167), while the deferral period would be one month for an elected tax year ending in November (e.g., Deferral Ratio to enter is 083).

    Note:

    The Tax Reform Act of 1986 required S Corporations and partnerships to use the tax year of their owners. 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.

  2. The "Deferral Ratio" is the three-digit code representing the allowable deferral percentage for the taxpayer’s elected deferral period. The term "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. There are eleven codes. These codes represent deferrals of one to eleven months and are shown in the chart below.

    Deferral Ratios

    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 put a decimal in front of the deferral ratio number.

  3. Correct all misplaced entries, coding errors, and transcription errors in Field 02-C (Deferral Ratio).

  4. Code and Edit is responsible for editing the correct number. If they did not edit the number, or edited it incorrectly, follow these instructions:

    1. Enter the three-digit code for the percentage in Field 02-C (Deferral Ratio). Refer to the Deferral Ratio chart above. If missing or incorrect, edit the same three-digit code on the dotted portion of Line 3 (to the left of the taxpayer’s entry).

    2. Generally, the deferral percentage will not exceed 25% (percent). However, entities with 1986 taxable years could make the IRC 444 elections and retain that taxable year even if the deferral period was more than 3 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 $1,000 on Line 1 and 83 percent on Line 3, came up with an amount of $83.00, he/she did not multiply by 83% (percent), but rather, 8.3%. In this case, you would enter 083. IMPORTANT: Deferral Ratio - must have an entry as listed above. This field can’t be zero (even if Lines 1 or 2 have a "0" (zero) amount).

    3. The taxpayer may either round the percentage (e.g., put down 8% or 17% or 67% rather than 8.3% or 16.7%), 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.

    Example:

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

    Exception:

    If the taxpayer puts down an amount that is less than six percent (6%), see IRM 3.12.249.3.9.3 (6) below.

  6. If the taxpayer puts down an amount that is less than six percent (6%):

    1. Correspond with the taxpayer using Letter 118C (or other appropriate letter) to ask what his/her deferral period is.

    2. Enter the appropriate code based on the taxpayer’s response.

    3. If there is no response, reject with Action Code 3 and route to Entity Control following local procedures (e.g., using Form 4227, Intra-SC Reject or Routing Slip, Form 10886, Reject Routing Slip, or other appropriate routing slip).

  7. 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, enter "167" .

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

Field 02-D, Line 1 - Deferred Amount
  1. This field is transcribed from Line 4. It is computed by multiplying the deferral rate (Line 3, Field 02-C) by the amount shown for the net income amount (Line 1, Field 02-A).

  2. Correct all misplaced entries, coding errors, and transcription errors in Field 02-A (Net Income Amount), Field 02-C (Deferral Ratio), and Field 02-D (Line 1 - Deferred Amount) and correct with Action Code 6.

    Note:

    If Field 02-C (Deferral Ratio) is changed to one of the valid ones, Do not change the taxpayer’s figures on any transcription (T) lines.

  3. If the error in Field 02-D (Line 1 - Deferred Amount) causes an underprint in that field, send TPNC 01 using Action Code 1. If this field underprints to rounding of the percent, correct with Action Code 7.

Field 02-E, Line 2 - Deferred Amount
  1. This field is transcribed from Line 5. It is computed by multiplying the deferral rate (Field 02-C, Line 3) by the amount shown for the applicable payment made during the base year (Field 02-B, Line 2).

  2. Correct all misplaced entries, coding errors, and transcription errors in Field 02-B (Applicable Payment Base Year Amount), Field 02-C (Deferral Ratio), and Field 02-E (Line 2 - Deferred Amount) and correct with Action Code 6.

  3. If the error in Field 02-E (Line 2 - Deferred Amount) causes an underprint in that field, send TPNC 02 (or other appropriate TPNC) using Action Code 1. If this field underprints to rounding of the percent, correct with Action Code 7.

Field 02-F, Applicable Payment Deferral Amount
  1. This field is transcribed from Line 6.

  2. Correct all misplaced entries, coding errors, and transcription errors in Field 02-F (Applicable Payment Deferral Amount) and correct with Action Code 6.

Field 02-G, 12 Month or Short Year Amount
  1. This field is transcribed from Line 7.

  2. Correct all misplaced entries, coding errors, and transcription errors in Field 02-G (12 Month or Short Year Amount). If a negative amount is shown, enter $0. Correct with Action Code 6.

Field 02-H, Net Base Year Income Amount
  1. This field is transcribed from Line 8.

  2. Correct all misplaced entries, coding errors, and transcription errors in Field 02-H (Net Base Year Income Amount) and correct with Action Code 6.

    Note:

    Unless this is a transcription error, Do not correct this field-accept the taxpayer’s figure.

Field 02-I, Net Base Year Percentage Amount
  1. This field is transcribed from Line 9a. It is computed by multiplying Line 8, Field 02-H (Net Base Year Income Amount), by the tax rate applicable for that period.

  2. The tax rates are as follows:

    Tax Year and Tax Rates

    Tax Year Tax Rate
    2013 and later 40.6% (percent)
    2003 through 2012 36%
    2002 39.6%
    2001 40.1%
    1993 through 2000 40.6%
    1991 and 1992 32%
    1990 29%

     

  3. Correct all misplaced entries, coding errors, and transcription errors in Field 02-H (Net Base Year Income Amount) and Field 02-I (Net Base Year Percentage Amount) and correct with Action Code 6.

  4. If Field 02-I (Net Base Year Percentage Amount) is blank and there is an underprint, edit Line 9a with the amount of the underprint. Bring up the underprint from Field 02-I (Net Base Year Percentage Amount) and correct with Action Code 6.

  5. If Field 02-I (Net Base Year Percentage Amount) is not blank and there is an underprint, send TPNC 03 using Action Code 1.

  6. If the taxpayer filed a return for the current year on a prior year revision of Form 8752, but did not enter the correct "Net Base Year Percentage Amount" (Line 9a), Field 02-I will underprint.

    Note:

    The computer is programmed to compute the correct Net Base Year Percentage Amount.

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Instead, send TPNC 03 using Action Code 1.

Field 02-J, Required Payment Amount
  1. This field is transcribed from Line 9b. Depending on the prior payment history of the organization, it should be either the amount shown on Line 9a or $0.

  2. Correct all misplaced entries, coding errors, and transcription errors in Field 02-J (Required Payment Amount) and correct with Action Code 6.

  3. See Field 02-J (Required Payment Amount) procedures below:

    Field 02-J Procedures

    If And Then
    Field 02-J (Required Payment Amount) is not blank Differs from the underprint in Field 02-I (Net Base Year Percentage Amount), Send TPNC 04 using Action Code 1.
    If Field 02-J (Required Payment Amount) is blank and Field 02-I (Net Base Year Income Amount) has an entry The underprint of Field 02-J ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Send TPNC 04 using Action Code 1.
    If Field 02-J (Required Payment Amount) is blank and Field 02-I (Net Base Year Income Amount) has an entry The underprint of Field 02-J ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Accept with Action Code 0.

     

    Note:

    See IRM 3.12.249.3.9.12, Field 02-L, Payment Due or Refund Amount, for additional information.

  4. 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 through the use of a taxable year other than the required year. Generally, the tax year must be a Fiscal Year (FY) ending in September, October, or November. The required payment is considered a deposit.

Field 02-K, Net Required Payment Balance
  1. This field is transcribed from Line 10.

  2. Correct all misplaced entries, coding errors, and transcription errors in Field 02-K (Net Required Payment Balance) and correct with Action Code 6.

Field 02-L, Payment Due or Refund Amount
  1. This field is transcribed from Lines 11 or 12. The computer will underprint with a positive amount for a balance due (Line 11) and a negative amount for an overpayment (Line 12). Field 02-L (Payment Due or Refund Amount) will asterisk if the taxpayer's figure differs from the computer figure ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. Line 11 (Required Payment Due) is computed by subtracting Line 10 (Field 02-K) from Line 9b (Field 02-J). Line 12 (Refund of Net Prior year payments) is computed by subtracting Line 9b (Field 02-J) from Line 10 (Field 02-K).

  3. Correct all misplaced entries, coding errors, and transcription errors in Field 02-L (Payment Due or Refund Amount) and correct with Action Code 6.

  4. See Field 02-L (Payment Due or Refund Amount) procedures below:

    Field 02-J Correction Procedures

    If And Then
    Field 02-J (Required Payment Amount) and Field 02-L (Payment Due or Refund Amount) are correct as transcribed (or blank), Field 02-K (Net Required Payment Balance) is blank Calculate the sum of or difference between Field 02-J and Field 02-L and enter the amount in Field 02-K (Net Required Payment Balance).
    If Field 02-L (Payment Due or Refund Amount) is zero, blank, dash or none, A balance due or refund is underprinting,
    1. Research IDRS (e.g., Command Code (CC) BMFOLT (or other appropriate command code) and verify Field 02-K.

    2. Correct Field 02-K or Field 02-L, accordingly.

    3. If a math error exists, send TPNC 05 (or other appropriate TPNC) using Action Code 1.

    If Field 02-L (Payment Due or Refund Amount) is underprinting and Field 02-J (Required Payment Amount) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Research IDRS (e.g., CC BMFOLT) and check TC 150 to see if taxpayer did not owe $500.00 or more for any prior tax year, Field 02-L is correct as transcribed, accept with Action Code 0.

    Note:

    If Field 02-L is still calculated wrong, send TPNC 05 using Action Code 1.

    If Field 02-L (Payment Due or Refund Amount) is underprinting and Field 02-J (Required Payment Amount) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Research IDRS (e.g., CC BMFOLT) and check TC 150 to see if taxpayer owed $500.00 or more for any prior tax year, Send TPNC 90 using Action Code 1.

    Note:

    Suggested language for TPNC 90: "Since your previously required payments exceeded $500.00, you must make a payment even though your required payment for this year is less than $500.00."

    If Field 02-L (Payment Due or Refund Amount) is underprinting No corrections are needed to Field 02-J, Field 02-K and Field 02-L but a math error exists, Send TPNC 05 using Action Code 1.

     

  5. If taxpayer requests a "credit elect" or in some way asks that the refund be posted to the next tax period:

    1. Prepare Form 3465, requesting Accounts Management (AM) to transfer the referenced credits to the appropriate module and to release the "X" freeze.

    2. Notate on the return "Form 3465 to AM" and make copy of Page 1 of the return (mark as "Copy - Do Not Process" ).

    3. On the error register, enter CCC "X" in Field 01-E (CCC) using Action Code 6 (to freeze the module from refunding or offsetting) and to correct Field 02-L (Payment Due or Refund Amount) by bringing up the underprint.

    4. Route Form 3465 with a copy of return to Accounts Management.

  6. Any penalty or interest included by the taxpayer in Field 02-L (Payment Due or Refund Amount) should be subtracted from the amount on Lines 11 or 12 and the difference entered in Field 02-L. Also, "X" Lines 11 or 12 and edit the difference to the left of the "X" . If the taxpayer has made a math error, send TPNC 05 using Action Code 1.

  7. Field 02-L (Payment Due or Refund Amount) will asterisk if either of the following conditions are present:

    Correction Procedures

    If Then
    The taxpayer’s figure (money amount) exceeds the length of the field,
    1. Enter all nines (9s) in that field.

    2. Reject with Action Code 3.

    3. Prepare Form 4227 (or other appropriate routing slip) and route to Accounts Management (AM).

    4. Notate reason for sending to AM (e.g., "Money amount exceeds field length" ).

    The refund amount equals $1 million or more, Follow instructions in IRM 3.12.249.3.9.12(8) or (9), below.

     

    Note:

    See IRM 3.12.249.2.8, Criminal Investigation (CI) Referral, for additional information.

  8. Correct all misplaced entries, coding errors, and transcription errors. If TC 840 has posted or is pending (PN 840) on IDRS to Command Code (CC) BMFOL or CC TXMOD and is the same overpayment on the return or Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund, is attached, then enter Action Code 6 or Action Code 7, as applicable, on the error register.

    Note:

    The freeze is released by posting Transaction Code (TC) 840.

  9. A manual refund on a Form 8752 will only be done if the refund is for $10 million or more. If you have a refund of $10 million or more:

    1. Correct all misplaced entries, coding errors, and transcription errors.

      Note:

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

    2. Form 3753 is not attached, correct with Action Code 3 and route to Rejects with Form 4227 (or other appropriate routing slip). Notate "Manual Refund" on Form 4227, Intra-SC Reject or Routing Slip.

      Note:

      If the required date, per IRC 7519(c)(3)(A), on which a refund becomes payable has not arrived, hold the return until such date. When the refund becomes payable, follow procedures in IRM 3.12.38, BMF General Instructions, for issuing manual refunds.

    3. Form 8302, Application for Electronic Funds Transfer (EFT) of $1 Million or More, is attached, correct with Action Code 3 and route to Rejects with Form 4227 (or other appropriate routing slip). Notate "Manual Refund" on Form 4227. Do not detach Form 8302.

      Note:

      If the required date, per IRC 7519(c)(3)(A), on which a refund becomes payable has not arrived, hold the return until such date. When the refund becomes payable, follow procedures in IRM 3.12.38.5.4, BMF General Instructions - Manual Refunds, for issuing manual refunds.

    Note:

    See IRM 3.12.249.2.8, Criminal Investigation (CI) Referral, for additional information.

  10. In the case of overpayment, the refund shall be payable the later of April 15 of the calendar year following the calendar year in which the election year begins or 90 days after the day on which the claim for refund is filed. In the case of a termination, the refund shall be payable the later of April 15 of the calendar year following the calendar year in which the election year ends, or 90 days after the day on which the claim for refund is filed. 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.

    Note:

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

Field 02-M, Preparer Tax Identification Number (PTIN)
  1. The Small Business and Work Opportunity Tax Act of 2007 provides a bridge to impose a penalty on a paid tax preparer who fails to sign the returns they prepare. In order for Compliance to determine whether a penalty should be assessed, the legislation requires Submission Processing, during the initial processing of the return to capture certain paid preparer information. Additional information can be found in Work Request WSP082292OTH - Forms 706NA and 8752 ISRP Capture of Paid Preparer Information.

  2. The Preparer Tax Identification Number (PTIN) is located at the bottom of Form 8752 (Preparer's SSN or PTIN box for 2009 and prior). Data may or may not be present in Field 02-M (PTIN).

    Note:

    If the Preparer information is present, either Field 02-M (PTIN) or Field 02-N (EIN) should have an entry. Only one of these fields is required. Follow the Correction Procedures below.

  3. Valid Condition - Field 02-M (PTIN) can be blank or numeric. If numeric, it can’t be all zeros and it can’t be all nines.

    Note:

    The first position can be a "P," followed by eight numbers. These numbers can’t be all zeros or all nines.

  4. Invalid Condition - This field is invalid if any of the following conditions are present:

    1. All zeros, or

    2. All nines, or

    3. Less than nine positions.

  5. Correction Procedures:

    1. Correct all misplaced entries, coding errors, and transcription errors.

    2. If unable to determine a valid entry, delete Field 02-M (PTIN).

Field 02-N, Firm's Employer Identification Number (EIN)
  1. The Small Business and Work Opportunity Tax Act of 2007 provides a bridge to impose a penalty on a paid tax preparer who fails to sign the returns they prepare. In order for Compliance to determine whether a penalty should be assessed, the legislation requires Submission Processing, during the initial processing of the return to capture certain paid preparer information.

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

    Note:

    If the Preparer information is present, either Field 02-M (PTIN) or Field 02-N (EIN) should have an entry. Only one of these fields is required. Follow the Correction Procedures below.

  3. Valid Condition - This field can be blank or numeric. It can’t be all zeros or all nines.

  4. Invalid Condition - This field is invalid if any of the following conditions are present:

    1. All zeros, or

    2. All nines, or

    3. Less than nine characters.

  5. Correction Procedures:

    1. Correct all misplaced entries, coding errors, and transcription errors.

    2. If unable to determine a valid entry, delete Field 02-N (EIN).

Field 02-O, Preparer Phone Number
  1. The Small Business and Work Opportunity Tax Act of 2007 provides a bridge to impose a penalty on a paid tax preparer who fails to sign the returns they prepare. In order for Compliance to determine whether a penalty should be assessed, the legislation requires Submission Processing, during the initial processing of the return to capture certain paid preparer information.

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

  3. Valid Condition - Field 02-O must be alpha or numeric or a combination of alpha, numeric or blank characters, not to exceed 10 characters.

  4. Invalid Condition - Field 02-O is invalid if other than 10 alpha/ numerics or blank.

  5. Correction Procedures:

    1. Correct all misplaced entries, coding errors, and transcription errors.

    2. If a telephone number is invalid, delete Field 02-O (Preparer Phone Number) and continue processing.

Section 03 Fields and Correction Procedures

  1. Section 03 contains address information. Section 03 on Form 8752 with a foreign address are processed at the Ogden Submission Processing Campus (OSPC). Army Post Office (APO), Diplomatic Post Office (DPO), and Fleet Post Office (FPO) are not considered foreign addresses.

  2. Section 03 on Form 8752 will be present when a change of address has been entered.

  3. Fields 03-A through 03-F are variable length and it is not necessary to account for every position allotted.

  4. This section will not be present on G-coded returns.

  5. Action Codes 4, 5, and 6 are valid.

  6. If a return has a street, Post Office (P.O.) Box number, city, state, or ZIP Code change, this section should be present.

  7. If a foreign address is present, see IRM 3.12.249.3.10.2, Foreign Address.

  8. Correction of address change validity errors are explained in the subsequent subsections (IRM 3.12.249.3.10.2 through IRM 3.12.249.3.10.5).

  9. Section 03 fields on the Error Register are shown below: Alpha Field Designator (AFD), Title, Field Sign, and Field Length. See Exhibit 3.12.249-1, Form 8752, Required Payment or Refund Under Section 7519, for additional information. See Exhibit 3.12.249-2, Error Register for Form 8752, for additional information.

    Section 03

    Section 03 AFD Title Field Sign Field Length
    A "In-Care-Of" Name + 35
    B Foreign Address + 35
    C Street Address + 35
    D City + 22
    E State + 2
    F ZIP Code + 12

     

Field 03-A, "In-Care-Of" Name
  1. Field 03-A ("In-Care-Of" Name) is located in the Entity section of Form 8752.

  2. Valid Condition - Field 03-A ("In-Care-Of" Name) has 35 positions and the valid characters are alpha, numeric, ampersand (), dash (-), slash (/), or percent (%).

    Note:

    The first character of the "In-Care-Of" Name must be alpha or numeric.

  3. Invalid Condition - Field 03-A ("In-Care-Of" Name) is invalid if any of the following conditions are present:

    • The first position is % (percent) and the second position is not blank, or

    • The first position is blank, or

    • The first position is not alpha or numeric, or

    • There are two consecutive blanks between significant characters

  4. Correction Procedures:

    1. Correct all coding errors and transcription errors.

    Correction Procedures

    If Then
    A % (percent) is in the first position,
    1. Line through Field 03-A ("In-Care-Of" Name).

    2. Enter the "In-Care-Of" Name beginning with an alpha or numeric in Field 03-A ("In-Care-Of" Name).

    A blank is in the first position,
    1. Line through Field 03-A ("In-Care-Of" Name).

    2. Enter the "In-Care-Of" Name beginning with an alpha or numeric in Field 03-A ("In-Care-Of" Name).

    The first position is not alpha or numeric,
    1. Verify in-care-of name on the return.

    2. Line through Field 03-A ("In-Care-Of" Name).

    3. Enter the "In-Care-Of" Name beginning with an alpha or numeric in Field 03-A ("In-Care-Of" Name).

    Two consecutive blanks present between significant characters,
    1. Line through Field 03-A ("In-Care-Of" Name).

    2. Enter the "In-Care-Of" Name beginning with an alpha or numeric in Field 03-A ("In-Care-Of" Name).

    There are invalid characters,
    1. Line through Field 03-A ("In-Care-Of" Name).

    2. Delete the "In-Care-Of" Name.

     

Field 03-B, Foreign Address
  1. Field 03-B (Foreign Address) is located in the Entity section of Form 8752.

  2. Form 8752 with a foreign address are processed at the Ogden Submission Processing Campus (OSPC).

    1. Route any returns with foreign addresses to the OSPC for processing.

    2. Prepare Letter 86C to inform the taxpayer that the return has been sent to OSPC.

  3. Valid Condition - Field 03-B (Foreign Address) has 35 characters and the valid characters are alpha, numeric and special characters.

  4. Invalid Condition - Field 03-B (Foreign Address) is invalid if any of the following conditions are present:

    • The first position is blank

    • There are two consecutive blanks followed by valid characters

    • There are more than 35 characters present in the field

      Note:

      ISRP is instructed to input a pound sign (#) as the 35th character if there are more than 35 characters present for this field on the return.

  5. Correct all coding errors and transcription errors.

    Correction Procedures

    If Then
    Field 03-B (Foreign Address) is present, Ensure Field 03-D (City) contains a foreign country code and Field 03-E (State) contains a (. ) (period/space). See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

    Exception:

    Use the country code based on the province in Field 03-D (City) if the foreign address is from Canada and the address contains a province name or abbreviation. See Exhibit 3.12.249-5, Province and Country Code - Canada Only.

    A province abbreviation is not present for Australia, Brazil, Canada, Cuba, Italy, Mexico or The Netherlands but a province name is present, Enter the province abbreviation in Field 03-B (Foreign Address). See Exhibit 3.12.249-6, Province, Foreign State and Territory Abbreviations.
    A foreign address is not present on the return,
    1. Reject with Action Code 3.

    2. Attach Form 4227 (or other appropriate routing slip) indicating to renumber the return with a domestic Document Locator Number (DLN).

    Reminder:

    The period/space (. ) in Field 03-E (State) must be deleted if this is NOT a foreign address.

     

  6. If Form 8822, Change of Address, (or Form 8822-B, Change of Address or Responsible Party - Business), is attached to the return, compare the name and address information on the Form 8822 (or Form 8822-B) to the return.

    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.

    Caution:

    These instructions will apply to Error Resolution only if Document Perfection has not detached and sent the Form 8822 (or Form 8822-B) to Entity Control following local procedures.

    Correction Procedures

    If And Then
    Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, All of the following applies:
    • Mailing address information is the same,

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

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

    1. Enter address shown on Form 8822 (or Form 8822-B) in Field 03-C (Street Address).

    2. Notate "Form 8822 (or Form 8822-B) detached" on tax return.

    3. Detach Form 8822 (or Form 8822-B) and route to Entity Control following local procedures (e.g., using Form 4227 (or other appropriate routing slip)).

      Note:

      Notate on Form 4227, "Change of Address per Form 8822 (or Form 8822-B)" .

     

    Note:

    The lead tax examiner is required to batch all Form 8822 (or Form 8822-B) daily and hand carry to Entity Control for expedited processing.

Field 03-C, Street Address
  1. Field 03-C (Street Address) is located in the Entity section of Form 8752.

  2. Valid Condition - Field 03-C (Street Address) has 35 characters and the valid characters are alpha, numeric and special characters.

  3. Invalid Condition - Field 03-C (Street Address) is invalid if any of the following conditions are present:

    • The first position is blank

    • Any characters are not alpha, numeric, blank, hyphen (-) or slash (/)

    • There are two consecutive blanks followed by valid characters

  4. Correct all coding errors and transcription errors.

    Correction Procedures

    If Then
    If the address on the return is illegible, Refer to the envelope and attachments to determine the taxpayer’s correct address.
    If Field 03-D (City) contains a Major City Code (MCC), A street address must be present.
    If a Major City Code (MCC) is used and no address is present, Enter the city in "city format," not in MCC format.
    If the address can’t be perfected, Delete the address section on the error register with Action Code 4.

     

  5. Field 03-C (Street Address) is invalid if a Major City Code (MCC) is present in Field 03-D (City) and a street address is not present.

    Address Criteria

    If Then
    If the MCC is correct and valid and the street address is present and legible on the return, Enter the street address in Field 03-C (Street Address).
    If there is not a valid MCC for the city on the return, Enter the full name of the city in Field 03-D (City).

     

    Note:

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

  6. If Form 8822, Change of Address, (or Form 8822-B, Change of Address or Responsible Party - Business), is attached to the return, compare the name and address information on the Form 8822 (or Form 8822-B) to the return.

    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.

    Caution:

    These instructions will apply to Error Resolution only if Document Perfection has not detached and sent the Form 8822 (or Form 8822-B) to Entity Control following local procedures.

    Form 8822 Procedures

    If And Then
    Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, All of the following applies:
    • Mailing address information is the same,

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

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

    1. Enter address shown on Form 8822 (or Form 8822-B) in Field 03-C (Street Address).

    2. Notate “Form 8822 (or Form 8822-B) detached” on tax return.

    3. Detach Form 8822 (or Form 8822-B) and route to Entity Control following local procedures (e.g., using Form 4227 (or other appropriate routing slip)).

      Note:

      Notate on Form 4227, "Change of Address per Form 8822 (or Form 8822-B)" .

     

    Note:

    The lead tax examiner is required to batch all Form 8822 (or Form 8822-B) daily and hand carry to Entity Control for expedite processing.

Field 03-D, City
  1. Field 03-D (City) is located in the Entity section of Form 8752.

  2. Valid Condition - Field 03-D (City) has a maximum of 22 characters.

  3. Invalid Condition - Field 03-D (City) is invalid if any of the following conditions are present:

    1. The first position is blank.

    2. A character follows the first two adjoining blanks.

    3. Any character is not alpha or blank.

    4. It is blank.

  4. Correction Procedures - Refer to the city shown on the return.

    1. Correct all coding errors and transcription errors.

    2. If the city on the return is illegible, refer to the envelope and attachments to determine the correct city.

    3. If the city can’t be perfected, delete the address section on the error register with Action Code 4.

  5. Field 03-D (City) and Field 03-E (State) are invalid if a Major City Code (MCC) is present and a state code is also present in Field 03-E (State).

  6. To correct, refer to the return and Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, to verify the MCC.

  7. If the MCC is correct, delete the state code entered in Field 03-E (State).

  8. If the MCC is not correct:

    1. Line through the MCC and enter the full name of the city in Field 03-D (City),

    2. Verify that the state code entered in Field 03-E (State) is correct, and

    3. Enter Action Code 6 on the error register to the left of the address section.

  9. Field 03-D (City) and Field 03-F (ZIP Code) are invalid if a MCC is present and the ZIP Code is not valid for the city.

  10. To correct, refer to the return and Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, to determine the correct MCC and ZIP Code.

    1. Correct all coding errors and transcription errors.

    2. If the ZIP Code and MCC were transcribed correctly and the ZIP Code is invalid for the city, refer to the envelope and attachments to locate a valid ZIP Code. If one is located, enter in Field 03-F (ZIP Code).

    3. If the correct ZIP Code is not available on the taxpayer’s submission, look up the ZIP Code and enter in Field 03-F (ZIP Code).

  11. Field 03-D (City) is invalid if the MCC is not valid.

  12. To correct, refer to the return and Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, to verify the MCC.

    1. Correct all coding errors and transcription errors.

    2. Search for a valid MCC for the city on the return. If one is found, line through the entry in Field 03-D (City) and enter the correct code above it.

    3. If the city on the return does not have a valid MCC, line through the code in Field 03-D and enter the full name of the city.

  13. See Exhibit 3.12.249-7, U.S. Possessions/Territories and ZIP Codes, for use with address corrections.

Field 03-E, State
  1. Field 03-E (State) is located in the Entity section of Form 8752.

  2. Valid Condition - Field 03-E (State) contains two alpha characters.

  3. Invalid Condition - Field 03-E (State) is invalid if the following conditions are present:

    1. It is blank and a MCC is not present in Field 03-D (City).

    2. It contains other than a valid state code.

  4. Refer to the return and Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, to determine the correct state code.

    1. Correct all coding errors and transcription errors.

    2. Determine the correct state code from Document 7475 and enter it in Field 03-E (State).

    3. If the state can’t be perfected, delete the address section of the error register.

  5. Field 03-E (State) and Field 03-F (ZIP Code) are invalid if the ZIP Code is not valid for the state.

  6. To correct, refer to the return and Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, to verify the state and ZIP Codes on the error register.

    1. Correct all coding errors and transcription errors.

    2. If the state code is incorrect, determine the correct code and enter it in Field 03-E (State).

    3. If the ZIP Code is not valid for the state, refer to the envelope and attachments to obtain a valid code.

    4. If a valid ZIP Code can’t be found on the taxpayer’s submission, look up the correct code and enter it in Field 03-F (ZIP Code).

  7. Returns with foreign address changes and the following American possession address changes can be input via Integrated Submission and Remittance Processing (ISRP) with the return, the same as domestic address changes.

    U.S. Possessions/Territory and Abbreviations

    U.S. Possessions/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

     

    Note:

    Route any returns with foreign or American Possession addresses to the Ogden Submission Processing Campus (OSPC) for processing. Prepare Letter 86C to inform the taxpayer that the return has been sent to OSPC.

Field 03-F, ZIP Code
  1. Field 03-F (ZIP Code) is located in the Entity section of Form 8752.

  2. Valid Condition - Field 03-F (ZIP Code) can contain 5, 9, or 12 numeric characters.

  3. Invalid Condition - Field 03-F (ZIP Code) is invalid if any of the following conditions are present:

    1. It is not all numeric or blank.

    2. There are not 5, 9, or 12 numeric characters.

  4. Correction Procedures - Refer to the return and attachments to determine the correct ZIP Code.

    1. Correct all coding errors and transcription errors.

    2. Compare the error register fields with the return. If incorrect, correct information.

    3. Research any of the following for valid ZIP Code information: Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, or IDRS Command Code (CC) INOLES, CC NAMEB, CC NAMEE or CC ENMOD.

    4. If only the first three digits of the ZIP Code can be determined, enter “01” in the fourth (4th) and fifth (5th) positions.

      ZIP Code Criteria

      If And Then
      Unable to determine a valid ZIP Code from the return or attachments,   Enter the valid ZIP Code found through research in Field 03-F (ZIP Code).
      The address is in a major city, A Major City Code can be determined, Enter Major City Code in Field 03-D (City).
      The address is in a major city, A Major City Code can’t be determined,
      1. Enter the name of the city in Field 03-D (City).

      2. Enter the State Code in Field 03-E (State).

      The address is not in a major city,  
      1. Enter the appropriate state abbreviation in Field 03-E (State).

      2. Enter the ZIP Code in Field 03-F (ZIP Code).

       

  5. See Exhibit 3.12.249-7, U.S. Possessions/Territories and ZIP Codes, for a valid ZIP Code.

  6. 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 (e.g., APO New York, NY 091XX), convert to the new state code abbreviation based on the ZIP code (e.g., the previous example would be converted to APO AE 091XX). APO/DPO/FPO addresses are considered domestic addresses. Refer to conversion chart below:

    AP/DPO/FPO Conversion Chart

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

     

Form 8752, Required Payment or Refund Under Section 7519

This is an Image: 33755002.gif
 

Please click here for the text description of the image.

Error Register for Form 8752

This is an Image: 33755003.gif
 

Please click here for the text description of the image.

Acronyms and Abbreviations

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

Acronyms and Abbreviations

Acronyms and Abbreviations Definition
AC Action Code
AFD Alpha Field Designator
AM Accounts Management
APO Army Post Office
ATRA American Taxpayer Relief Act
BMF Business Master File
c/o Care of
C&E Code and Edit
CADE Customer Account Data Engine
CAF Centralized Authorization File
CAS Correspondence Action Sheet
CC Command Code
CCC Computer Condition Code
CDP Collection Due Process
CFOL Corporate Files On Line
CFR Code of Federal Regulations
CI Criminal Investigation
CIS Correspondence Imaging System
CP Computer Paragraph
CSPC Cincinnati Submission Processing Campus or Cincinnati Submission Processing Center
CTDWA Control-D WebAccess
DLN Document Locator Number
DPO Diplomatic Post Office
EEFax Enterprise Electronic Fax
e.g. For Example
EIN Employee Identification Number
EQSP Embedded Quality Submission Processing
ERS Error Resolution System
etc. Et Cetera
Exam Examination
Fax Facsimile
FPO Fleet Post Office
FRP Frivolous Return Program
FY Fiscal Year
IAT Integrated Automation Technologies
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
LB&I Large Business and International
MCC Martinsburg Computing Center
MFT Master File Tax
N/A Not Applicable
No. Number
OE Original Entry
OID Original Issue Discount
OMB Office of Management and Budget
OSPC Ogden Submission Processing Campus or Ogden Submission Processing Center
P/I Penalty and Interest
P&A Planning and Analysis
PL Public Law
POA Power Of Attorney
PTIN Preparer Tax Identification Number
R&C Receipt and Control
Rev. Proc. Revenue Procedure
RRA98 Restructuring and Reform Act of 1998
SBSE Small Business Self-Employed
SCAMPS Service Center Automated Mail Processing System
SCRS Service Center Replacement System
SERP Servicewide Electronic Research Program
SLA Service Level Agreement
SME Subject Matter Expert
SP Submission Processing
SPDC Submission Processing Design Center
SSN Social Security Number
TAS Taxpayer Advocate Service
TBOR Taxpayer Bill of Rights
TC Transaction Code
TEGE Tax Exempt and Government Entities
TIA Tax Information Authorization
TIN Taxpayer Identification Number
TPNC Taxpayer Notice Code
U.S. United States
UCC Uniform Commercial Code
USC United States Code
USPS United States Postal Service
W&I Wage and Investment
YYYYMMDD Year Year Year Year Month Month Day Day
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 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 OMB (Office of Management and Budget) 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. Other false financial instruments may be filed in the place of or in addition to the Form 1099-OID such as Form 2439, 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 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 Rev. Rul. 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:

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

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 and Country Code - Canada Only

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

Canadian Province/Territory Province 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

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
Hormingueros 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) City 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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