3.21.19 Foreign Trust System

Manual Transmittal

November 10, 2017

Purpose

(1) This transmits revised Internal Revenue Manual (IRM) 3.21.19, International Returns and Document Analysis - Foreign Trust System.

Material Changes

(1) IRM 3.21.19 Figures, Exhibits, References and dates revised throughout.

(2) IRM 3.21.19 Editorial and grammatical changes made throughout.

(3) IRM 3.21.19.1 Added information to conform to the new internal and management control standards.

(4) IRM 3.21.19.1(4) Updated correspondence instructions for 1995 or prior version of Form 3520 or Form 3520-A.

(5) IRM 3.21.19.1(4) Added Action Code 211 for correspondence to a domestic U.S. address on Form 3520-A.

(6) IRM 3.21.19.1(4) Removed correspondence instructions.

(7) IRM 3.21.19.1.1 Removed Fideicomiso information.

(8) IRM 3.21.19.4(2) Added information on Taxpayer Bill of Rights (TBOR).

(9) IRM 3.21.19.5(3) Caution: Corrected IRM reference to 11.3.2.7.1.

(10) IRM 3.21.19.7 Deleted information as not applicable to Forms 3520/3520-A.

(11) IRM 3.21.19.10(1) Removed instruction regarding correspondence.

(12) IRM 3.21.19.10(9) Revised examples of incomplete dates.

(13) IRM 3.21.19.10.1 Chart: Added example for "X" ing.

(14) IRM 3.21.19.10.1 Chart - added "numeric 0" for clarification in the Zero, Dash, None, or NA box.

(15) IRM 3.21.19.10.2(4) Removed exception regarding AC 341 as not applicable to Form 3520 or 3520-A.

(16) IRM 3.21.19.10.2(6) Added Action Code 211 and 225 for correspondence on Form 3520-A.

(17) IRM 3.21.19.11(3) - (4) Separated instructions on unprocessable returns to be routed to Entity Control and correspondence.

(18) IRM 3.21.19.11(3) - (4) Revised correspondence instructions.

(19) IRM 3.21.19.12 Revised instructions to correspond and added instruction to route Letter 3653C replies to Rejects.

(20) IRM 3.21.19.12(1) & (2) Clarified the location of U.S. taxpayer address, and added instructions if Form 3520-A, page 3, line 6 is blank.

(21) IRM 3.21.19.12(4) Added correspondence Action Sheet line number.

(22) IRM 3.21.19.12(5) Added instruction to research incomplete returns to determine if duplicate or a reply to Letter 3653C correspondence.

(23) IRM 3.21.19.12(6) Revised correspondence instructions in chart.

(24) IRM 3.21.19.12(7) Added Action Code 211 to the first "Then" box, step 3, if correspondence is needed.

(25) IRM 3.21.19.13(1) Added instruction to delete notations of attachment or statement after editing data from the attachment.

(26) IRM 3.21.19.13.1 Revised list of acronyms found in routing guide and corrected OSC to OAMC.

(27) IRM 3.21.19.13.1 Revised Form 5471/5472 THEN box to delete scanning for LB&I information.

(28) IRM 3.21.19.13.1 Form W-7 routing information CORRECTED physical address.

(29) IRM 3.21.19.13.1 Form W-7 routing information revised with physical address.

(30) IRM 3.21.19.14.2(2) Revised note to clarify to edit CCC "R" and continue processing.

(31) IRM 3.21.19.14.2(5) Rewritten to correct the due date for Form 3520.

(32) IRM 3.21.19.14.2(6) Removed note regarding foreign address and CCC "9" .

(33) IRM 3.21.19.14.2(7) - (8) Deleted (7) as unnecessary, and renumbered (8) accordingly. Corrected Letter 1382C paragraphs to "A" and "S" and deleted Caution.

(34) IRM 3.21.19.14.3(1) Identified Compliance functions and defined acronym RD as Return Delinquency.

(35) IRM 3.21.19.14.3.1(2) Corrected reference for CCC 4 instructions.

(36) IRM 3.21.19.14.3.2(1) Updated correspondence instructions and clarified when to edit CCC "W" .

(37) IRM 3.21.19.14.3.3(1)a Added reference to received date instructions.

(38) IRM 3.21.19.14.3.3(1)d Clarified when to edit CCC "W" .

(39) IRM 3.21.19.14.3.4(1) Updated correspondence instruction and clarified when to edit CCC "W" .

(40) IRM 3.21.19.14.3.5(1) Revised to clarify the due date in regard to a foreign address.

(41) IRM 3.21.19.14.3.5(1) Removed instructions to edit CCC "9" on foreign address returns.

(42) IRM 3.21.19.14.3.6(2) Chart: Corrected Frivolous Return Processing to Frivolous Return Program.

(43) IRM 3.21.19.14.3.6(2) Corrected reference to Frivolous Returns Program IRM and corrected reference to IRM Exhibit 3.21.19-5.

(44) IRM 3.21.19.14.4(5) Revised Caution instructions regarding statute editing.

(45) IRM 3.21.19.14.4(6) Revised correspondence procedures on Re-entry documents.

(46) IRM 3.21.19.14.4.1(9) Revised instructions and added a reference for editing the received date.

(47) IRM 3.21.19.14.4.2 Added (5) and revised instructions in (7) for editing the received date.

(48) IRM 3.21.19.14.5(1) - (2) Revised Statute instructions, Statute clearance not required but may require editing of CCC W on Form 3520-A. Deleted (3), (4), (5), and (6).

(49) IRM 3.21.19.14.5(2) Revised instruction on Statute Clearance Procedures and the editing of CCC "W" .

(50) IRM 3.21.19.14.5(3) - (6) Deleted, instruction obsolete.

(51) IRM 3.21.19.14.7 Removed restriction on information that is not Official Use Only.

(52) IRM 3.21.19.14.8 Removed restriction on information that is not Official Use Only.

(53) IRM 3.21.19.15 Revised (3) by removing some information and Note, and created a new (8) for clarity.

(54) IRM 3.21.19.15(5) Removed processing instructions as unnecessary.

(55) IRM 3.21.19.15.1(3) Corrected reference on pre-master file returns.

(56) IRM 3.21.19.16.2(2) Rewritten to better define an early-filed return.

(57) IRM 3.21.19.16.3 Deleted (2) and (3) as not applicable and renumbered (4).

(58) IRM 3.21.19.16.3(2) Clarified instructions for editing a fiscal tax period.

(59) IRM 3.21.19.17(2) Chart- added note to paragraph (2) defining delivery services per BMF Consistency Template.

(60) IRM 3.21.19.17(2)-(4) Added reference for more information on private delivery service, and clarified factors for acceptable date stamps.

(61) IRM 3.21.19.17.1 Corrected dates in the Delinquent column of both charts.

(62) IRM 3.21.19.17.1(1) Updated all due date charts.

(63) IRM 3.21.19.18 Added a definition of Computer Condition Code (CCC) and revised the description of the location to edit CCC.

(64) IRM 3.21.19.18.1(1) Clarified instructions to edit CCC "C" .

(65) IRM 3.21.19.18.5(1) Rewritten to say "contains all the same numeric values" for clarification.

(66) IRM 3.21.19.18.5(2) Clarified instructions to edit CCC "N" .

(67) IRM 3.21.19.18.6(1) Corrected reference to delinquent return instructions.

(68) IRM 3.21.19.18.11(1) Corrected line number from "k" to "1k" .

(69) IRM 3.21.19.18.12 Marked as Reserved, and removed instructions to edit CCC 9 on foreign address returns.

(70) IRM 3.21.19.20(6) Revised the chart with IRM references for each checkbox.

(71) IRM 3.21.19.20(9) Note revised with correspondence instruction.

(72) IRM 3.21.19.20(10) Updated correspondence instruction and identified who correspondence should be addressed to.

(73) IRM 3.21.19.20.1 Deleted (1) as unnecessary, and renumbered (2) accordingly. Added a note in regard to correspondence and revised chart with new correspondence instructions.

(74) IRM 3.21.19.20.1(1) Corrected line number to mark on Letter 3653C CAS from Line 14 to 15.

(75) IRM 3.21.19.20.2 Deleted (1) as unnecessary and renumbered (2) accordingly. Added a note in regard to correspondence and revised chart with new correspondence instructions.

(76) IRM 3.21.19.20.3 Deleted (1) as unnecessary and renumbered (2) accordingly. Added a note in regard to correspondence and revised chart with new correspondence instructions.

(77) IRM 3.21.19.20.3(1) For Line 30 "YES" , changed "or" to "AND" to initiate correspondence only if all lines 31 through 47 are blank.

(78) IRM 3.21.19.20.4 Deleted (1) as unnecessary and renumbered (2) accordingly. Added a note in regard to correspondence and revised chart with new correspondence instructions. Revised Line 56 instruction in last box to take no action.

(79) IRM 3.21.19.21.3 Corrected subsection title and added processing instruction if the TIN is invalid.

(80) IRM 3.21.19.21.3(4) Chart Updated with revised correspondence instructions.

(81) IRM 3.21.19.21.5.2(2)-(3) Revised editing instructions for U.S. Possessions.

(82) IRM 3.21.19.21.5.3(1) Rewritten with clear instruction to edit TC 014 in the upper left margin.

(83) IRM 3.21.19.21.6 Deleted (1) as unnecessary, removed note on CCC 9, and renumbered paragraphs accordingly.

(84) IRM 3.21.19.21.6 Removed note regarding the editing of CCC "9" and added references for editing Canadian addresses.

(85) IRM 3.21.19.21.6.1(1) Corrected the reference to country codes in Figure 3.21.19-7, and added a reference to Figure 3.21.19-8b for Canada addresses.

(86) IRM 3.21.19.21.6.2(2) Rewritten with instruction to edit TC 014 for foreign address changes.

(87) IRM 3.21.19.21.10(4) Removed instruction to research IDRS and removed last sentence of note.

(88) IRM 3.21.19.21.12(3) Revised editing instructions for U.S. Possessions and added a cross-reference.

(89) IRM 3.21.19.21.14(4) Corrected form number and location to be 3520-A Page 3 Line 6e.

(90) IRM 3.21.19.21.14(4) Revised instructions to edit the campus code based on the taxpayer’s resident state.

(91) IRM 3.21.19.22 Added new (2) with correspondence instructions, and renumbered subsequent paragraphs accordingly.

(92) IRM 3.21.19.22.1(3) Deleted as unnecessary ERS information.

(93) IRM 3.21.19.22.2(2)Note Revised to clarify routing instructions.

(94) IRM 3.21.19.23 Revised title by adding appropriate line numbers. Added new (1) for Line 3 information; renumbered old (1) and added new (3) and (4) with correspondence instructions.

(95) IRM 3.21.19.23.1 Section deleted as no longer applicable.

(96) IRM 3.21.19.23.3(1) Revised the IRM reference for editing the TIN.

(97) IRM 3.21.19.24(2) Revised with new correspondence instructions and deleted Note.

(98) IRM 3.21.19.24.8(2) Revised with new correspondence instructions.

(99) IRM 3.21.19.25(2) Revised with new correspondence instructions.

(100) IRM 3.21.19.25(2) Corrected line number to mark on Letter 3653C CAS from Line 4 to Line 25.

(101) IRM 3.21.19.25.1 Added new (2) with correspondence instructions.

(102) IRM 3.21.19.25.2 Deleted (3) and renumbered subsequent paragraph accordingly.

(103) IRM 3.21.19.25.3(1) Revised the IRM reference for editing the TIN.

(104) IRM 3.21.19.25.8 Added new subsection for Line 7a Checkbox. Subsequent subsections renumbered accordingly.

(105) IRM 3.21.19.25.9(1) Added correspondence instruction if line 7b is incomplete.

(106) IRM 3.21.19.25.10(5) Deleted duplicate instruction that appears in (2).

(107) IRM 3.21.19.25.12(2) Revised the IRM reference for editing the TIN.

(108) IRM 3.21.19.25.14(2) Deleted as unnecessary ERS information.

(109) IRM 3.21.19.27.1(1) Added new correspondence instruction.

(110) IRM 3.21.19.27.2(3) Added new paragraph (3) with correspondence instruction.

(111) IRM 3.21.19.27.4(2) Deleted as unnecessary ERS information.

(112) IRM 3.21.19.28.1(3) Updated editing instructions for Date of Transfer.

(113) IRM 3.21.19.28.1(4) Added new (4) with correspondence instructions.

(114) IRM 3.21.19.28.14(4) Added new (4) with correspondence instructions.

(115) IRM 3.21.19.28.17(1) Revised the IRM reference for editing the TIN.

(116) IRM 3.21.19.28.22(1) Revised the IRM reference for editing the TIN.

(117) IRM 3.21.19.28.27(1) Revised the IRM reference for editing the TIN.

(118) IRM 3.21.19.29(2) Added new (2) with correspondence instructions.

(119) IRM 3.21.19.30(1) Note revised with updated correspondence instruction.

(120) IRM 3.21.19.30.4(1) Revised the IRM reference for editing the TIN.

(121) IRM 3.21.19.30.12(1) Revised correspondence instruction. Reminder reworded for clarification of which statement is being referenced.

(122) IRM 3.21.19.31 Section rewritten to remove obsolete information and new (3) and (4) added with new instructions for editing and corresponding.

(123) IRM 3.21.19.32 Section deleted, no longer applicable. Marked as reserved.

(124) IRM 3.21.19.32.1 Added new correspondence instructions in (1) and (2) rewritten for clarification of editing and correspondence procedures.

(125) IRM 3.21.19.32.1(2) Removed references to Schedule B as it should not be completed if Line 29 is marked No.

(126) IRM 3.21.19.32.2 Added new correspondence instructions in (1) and (2) rewritten for clarification of editing and correspondence procedures.

(127) IRM 3.21.19.32.2(1) Revised procedures if Line 30 is yes, and corrected line number to mark on Letter 3653C CAS from Line 21 to Line 22.

(128) IRM 3.21.19.32.3 Deleted obsolete information in (1) and deleted (2) and (3) as irrelevant.

(129) IRM 3.21.19.32.4 Deleted obsolete information in (1) and deleted (2) as irrelevant.

(130) IRM 3.21.19.32.4(1) Revised instructions to change "must" to "may" .

(131) IRM 3.21.19.32.5 Deleted (2) and (3) as unnecessary ERS information.

(132) IRM 3.21.19.33 Revised title by adding line numbers, revised Note in (1) to delete multiple page 6 when more than one attached, and deleted (2) and (3) as not applicable.

(133) IRM 3.21.19.33.1 Added new subsection for Line 54 Checkbox, and renumbered subsequent subsections accordingly.

(134) IRM 3.21.19.33.1(1)a Removed reference to Line 55 columns (a) through (g).

(135) IRM 3.21.19.33.2(2) Revised editing instructions for Line 54 entries.

(136) IRM 3.21.19.33.6 Added new subsection for Line 55 Checkbox, and renumbered subsequent subsections accordingly.

(137) IRM 3.21.19.33.7 Revised title by removing dollar amount and revised editing instructions for Line 55 entries.

(138) IRM 3.21.19.33.12 Revised (1) to indicate no editing required and deleted (2) as not applicable.

(139) IRM 3.21.19.33.13 Revised (1) to indicate no editing required.

(140) IRM 3.21.19.33.15 Revised title by removing dollar amount.

(141) IRM 3.21.19.34(3) Chart updated with new correspondence instructions.

(142) IRM 3.21.19.34.2 Revised instructions for editing Paid Preparer Tax Identification Number (PTIN).

(143) IRM 3.21.19.34.3 Deleted as obsolete.

(144) IRM 3.21.19.35(3) Note updated with the correct mail stop number for OAMC.

(145) IRM 3.21.19.35.1(3) Removed incorrect references.

(146) IRM 3.21.19.37(1) Added reference to IRM 3.21.19.10.

(147) IRM 3.21.19.43.3(2) Rewritten to better define an early-filed return.

(148) IRM 3.21.19.43.4 Deleted information in (1) and (2) and added reference to 3.21.19.16.3.

(149) IRM 3.21.19.44 Note in (1) deleted as unnecessary.

(150) IRM 3.21.19.45(1) and (2) Added definition of computer condition code, corrected an IRM reference, and revised CCC list.

(151) IRM 3.21.19.45.3 Added a reference to Amended Return instructions for CCC G.

(152) IRM 3.21.19.45.5(1) Rewritten to say "contains all the same numeric values" for clarification.

(153) IRM 3.21.19.45.6(2) Revised to edit CCC “R” on all returns until further notice.

(154) IRM 3.21.19.45.7(1) Rewritten to remove instructions to route to Statute for clearance, and deleted note.

(155) IRM 3.21.19.45.7 Removed statements regarding Statute Control and statute clearance.

(156) IRM 3.21.19.45.10 Marked as Reserved, removed instruction to edit CCC 9 on Form 3520-A, and deleted note.

(157) IRM 3.21.19.46(1) Reworded (1); changed “taxpayer” to “Foreign Trust” and added correspondence instructions.

(158) IRM 3.21.19.46(1) Added Action Code 211, instruction to address Form 3520-A correspondence to U.S. Owner on page 3, Line 6.

(159) IRM 3.21.19.46(1)Note Added reference to instructions for correspondence when U.S. Owner information is incomplete.

(160) IRM 3.21.19.46.8 Added new subsection for U.S. Agent Appointed Line 2, and renumbered subsequent subsections.

(161) IRM 3.21.19.46.8(1) Added Action Code 211 to correspondence instructions.

(162) IRM 3.21.19.46.9(1) Removed Note as not relevant.

(163) IRM 3.21.19.46.10(1) Removed Reminder as no longer applicable.

(164) IRM 3.21.19.46.11(1) Corrected information in Note regarding corresponding with Foreign Trust.

(165) IRM 3.21.19.47.1(1) Corrected IRM reference for Preparer’s Signature.

(166) IRM 3.21.19.47.2(1) Corrected IRM reference for Preparer’s EIN or PTIN.

(167) IRM 3.21.19.47.3(1) Deleted as obsolete.

(168) IRM 3.21.19.48(2) Revised with new correspondence instructions.

(169) IRM 3.21.19.48(2) Added Action Code 211 to correspondence instructions.

(170) IRM 3.21.19.48.8 Removed ERS instructions in (1), and added editing instructions in (2).

(171) IRM 3.21.19.48.13(1) Removed ERS information.

(172) IRM 3.21.19.50(1) Added instructions to edit the first five Foreign Grantor Trust Owner Statements, if multiple page 3 statements are attached to Form 3520-A.

(173) IRM 3.21.19.50.2 Added (2) with correspondence instructions for Line 6a.

(174) IRM 3.21.19.50.2(2) Added Action Code 211, and correspondence instruction if Form 3520-A U.S. Owner information on page 3, Line 6 is blank.

(175) IRM 3.21.19.50.3 Rewritten to route to Entity for research.

(176) IRM 3.21.19.50.3(1) Corrected IRM reference for editing a TIN.

(177) IRM 3.21.19.50.11(1) Reworded to be consistent with other content and added new correspondence instruction.

(178) IRM 3.21.19.50.11(1) Added Action Code 211 to correspondence instructions.

(179) IRM 3.21.19.50.12(1) Removed ERS information.

(180) IRM 3.21.19.51.2(1) Corrected IRM reference for editing a TIN.

(181) IRM 3.21.19.51.4 Added new (1) with Line requirements and correspondence instructions. Subsequent paragraphs renumbered.

(182) IRM 3.21.19.51.4(1) Added Action Code 211 to correspondence instructions.

(183) IRM 3.21.19.51.5 Revised subsection title to include "Line 9" .

(184) Exhibit 3.21.19-1 Updated chart of computer condition codes for Form 3520.

(185) Exhibit 3.21.19-2 Corrected the spelling of Cerro Gordo and Toa Baja.

(186) Exhibit 3.21.19-3 Changed the explanation of CCC 9 from Foreign Address to Reserved.

(187) Exhibit 3.21.19-3 Updated chart of computer condition codes for Form 3520-A.

(188) Exhibit 3.21.19-6 Corrected the spelling of province or state names listed for Australia (New South Wales), Brazil (Espirito Santo), Cuba (Granma), Italy (Belluno, Benevento, Bolzano Bozen, Caltanissetta, Genoa, Milan, and Vicenza), Mexico (Aguascalientes), and the Netherlands (Limburg, and Utrecht).

(189) Exhibit 3.21.19-8 Added a glossary of terms and acronyms.

Effect on Other Documents

IRM 3.21.19 dated November 16, 2016 (effective 01-01-2017) is superseded. This IRM also incorporates the following Interim Procedural Updates (IPU): 17U0070 issued 01-09-2017, 17U0243 issued 02-06-2017, 17U0491 issued 03-14-2017, 17U0633 issued 04-05-2017, 17U0656 issued 04-10-2017, 17U1177 issued 07-24-2017, and 17U1354 issued 09-21-2017.

Audience

Wage and Investment, Ogden Submission Processing, Document Perfection Branch, Code & Edit employees (OSPC Only)

Effective Date

(01-01-2018)

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

Program Scope and Objectives

  1. Purpose: The Document Perfection Operation, Code & Edit Unit, prepares paper returns for processing by reviewing and editing the documents with specialized processing codes for use downstream.

  2. Audience: These procedures apply to IRS employees with responsibility for reviewing and editing Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, and Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner, information returns in Document Perfection Operation including Supervisory Tax Examining Assistant, Lead Tax Examining Technicians, and Tax Examining Technicians primarily, on the International team at the Ogden Submission Processing Center.

  3. Policy Owner: The Director, Submission Processing, is responsible for the policies in this IRM.

  4. Program Owner: The Code & Edit/ERS IMF Section of the Paper Processing Branch of Submission Processing.

  5. Primary Stakeholders: Submission Processing (SP) and Large Business and International (LB&I).

  6. Program Goals: Accurately review and prepare all paper returns for Data Transcription and/or correspondence as necessary.

Background

  1. Form 3520 and Form 3520-A are information returns and are processed to the Business Master File (BMF). Form 3520 is processed under MFT 68. Form 3520-A is processed under MFT 42.

  2. Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, is filed by U.S. persons (and executors of estates of U.S. decedents) to report certain transactions with foreign trusts and receipt of certain large gifts or bequests from certain foreign persons.

  3. Form 3520-A, Annual Informational Return of Foreign Trust With a U.S. Owner, is filed by a foreign trust with a U.S. owner for the U.S. owner to satisfy its annual information reporting requirements under IRC 6048(b).

  4. The effective dates of Form 3520 and Form 3520-A are:

    • Form 3520 -The earliest tax period processed to BMF is 199812 (Processing Year (PY) 1999).

    • Form 3520-A -The earliest tax period processed to BMF is 200012 (PY 2001).

Authority

  1. IRC 6213(b) provides the authority for identification and resolution of mathematical and clerical errors on tax returns in processing.

  2. Policy statements for Submission Processing are contained in IRM 1.2.12, Servicewide Policies and Authorities, Policy Statements for Submission Processing Activities.

Responsibilities

  1. The Director, SP Office 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 maintaining updated IRM procedures.

Program Management and Review

  1. Program Goals: Code & Edit is tasked with timely and accurately reviewing and editing all paper returns.

  2. Program Reports: The Monitoring Section under Submission Processing Program Management/Process Assurance monitors the inventory and timely processing of the returns using Code & Edit reports.

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

    • Embedded Quality Submission Processing (EQSP)

    • Balanced Measures

    • Managerial Reviews

  4. Annual Review: The processes included in this manual are reviewed annually to ensure accuracy and promote consistent tax administration.

Terms/Definitions/Acronyms

  1. A glossary of terms and acronyms can be found in Exhibit 3.21.19-8. See IRM 3.21.19.13.1 for a list of acronyms used in the routing guide for attachments.

Related Resources

  1. Job Aid 6808-001 has been developed to assist tax examiners in their work.

IRS Employee Contacts - Internal Revenue Code (IRC) 3705(a)

  1. The Restructuring and Reform Act of 1998 (RRA 98) IRC 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 a 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), provide as appropriate during the conversation, their last name and badge identification (ID Card) number.

    3. Correspondence - All correspondence must include a telephone number where 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.

    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 cannot 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 to provide 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.

♦IRM Deviation Procedures♦

  1. IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2.4When 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 https://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 completely 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 (SLA)♦

  1. The National Taxpayer Advocate has reached agreements with the Commissioners of the Wage & Investment (W&I) Division, Small Business & Self-Employed (SB/SE) Division, Tax Exempt & Government Entities (TE/GE), Criminal Investigation (CI), Appeals, and Large Business and International (LB&I) 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.

♦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, fax signatures are acceptable.

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

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

    • IRM 21.1.3.2.3, Required Taxpayer Authentication.

    • IRM 21.1.3.2.4, Additional Taxpayer Authentication.

  4. 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.

General Disclosure Guidelines

  1. IRC 6103 establishes the taxpayer's (T/P's) right to privacy of tax information. You must be sure that you provide correct information to the correct T/P or authorized representative (check IDRS CC CFINK for POA).

  2. Taxpayer returns and return information must remain confidential as provided for in IRC 6103,Confidentiality and disclosure of returns and return information. IRC 7431 provides civil damages for unauthorized disclosure of returns and return information. IRC 7213 and IRC 7213A provide criminal penalties for unauthorized disclosure or unauthorized inspection of returns and return information and require employees be discharged from duty if charged and convicted of these offenses.

  3. For more information on General Disclosure Guidelines refer to IRM 21.1.3,Operational Guidelines Overview, and for full discussions, refer to IRM 11.3.1 through IRM 11.3.40,Disclosure of Official Information.

RESERVED

  1. Reserved

Individual Taxpayer Identification Number (ITIN)

  1. An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. It is a nine-digit number that always begins with the number 9 and has middle numbers within the following ranges, 50-65, 70-88, 90-92, and 94-98 (e.g., 9XX-7X-XXXX).

  2. IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain a Social Security Number (SSN) from the Social Security Administration (SSA).

  3. ITINs are issued regardless of immigration status because both resident and nonresident aliens may have U.S. tax return and payment responsibilities under the Internal Revenue Code.

  4. Forward all Form W-7 and the required supporting documentation (e.g., passports, birth certificates, etc.) to the ITIN Unit located at the Austin Submission Processing Campus.

♦BMF Consistency♦

  1. The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Code & Edit (C&E) processing IRMs.

  2. Topics for BMF Consistency have been identified and developed as a coordinated effort between Cincinnati, Ogden and Paper Processing Branch BMF C&E/Error Resolution System (ERS).

  3. BMF consistency subsections are identified by a ♦ (diamond) before and after the title.

  4. Text in normal print is the common processes for BMF returns. The text in BOLD print is form specific and applies to this IRM only.

General Editing Guidelines

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

  2. We will be forcing processing for anything else.

  3. The following general information can be used when editing Form 3520 returns.

  4. General instructions eliminate repetition of the same instructions for each return. If the general instructions and the specific instructions conflict, follow the specific instructions.

  5. All money amounts must be entered in U.S. dollars.

    Caution:

    If the entries on the return are other than U.S. dollars, see IRM 3.21.19.12.2.

  6. Money amounts can be either a positive or negative number.

  7. Do not bracket negative amounts. Refer to IRM 3.21.19.10.1 (4) table, ninth row regarding brackets and parenthesis.

  8. Tax period is edited in YYYYMM format.

  9. Edit the date in MMDDYYYY format when the date does not appear in month-day-year format. These are most of the fields on the foreign trust returns: Received date, correspondence received date, date of death, date trust created, date of transfer, date of original obligation, date foreign trust created, date of distribution, date of original loan, and date of gift.

    Example:

    Taxpayers often enter dates in the following formats (e.g., September 11, 2017, Sept. 11,17, 9-11-17) which is sufficient for Integrated Submission and Remittance Processing (ISRP). However, if the taxpayer enters a date like "Apr. 2017" or 23 October 2017, then it is not clear for ISRP. Edit 04012017, and 10232017 for the above examples. If the date is blank or unknown, edit the first day and month of the return tax period (e.g., 01012017).

  10. Year of sale, year of loan, year of subsequent variances, and tax year qualified obligation first reported, is edited in YY format.

  11. Arrange the return in the following order:

    1. Form 3520, page 1

    2. Form 3520, page 2

    3. Form 3520, page 3

    4. Form 3520, page 4

    5. Form 3520, page 5

    6. Form 3520, page 6

      Note:

      Attachment(s) to support Part I - Line 14 or Line 18, Part II - Line 22, Part III - Line 29, 30 or 44 and/or Part IV - Line 54 or 55 do not have to be in any type of order, but must be behind page 6 or can be deleted by slashing. If slashed, it is not necessary to move them. Do not staple up.

♦Edit Marks♦

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

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

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

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

    Edit Mark Description
    "X" The "X" is used to delete tax data or to indicate that an item is not to be transcribed.

    Note:

    For example, if deleting an original taxpayer entry, edit "X" to the left of entry to be deleted. Edit the correct entry to the left or above the "X" .

    "/" A "/" can be used when deleting a form or schedule not being transcribed.
    "//$" The "//$" is used in the entity area to identify the beginning and ending of a foreign country code. For example, "/EI/$" is edited for "Ireland" or "/GM/$" is edited for "Germany" .
    "c/o" or "%" Indicates an "in-care-of" name for transcription.
    Circle Indicates that an entry is not to be transcribed. Also used to delete entity data or a received date.

    Note:

    If the taxpayer circles an entry, re-edit the entry circled by the taxpayer.

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

    Note:

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

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

    Note:

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

    Vertical Line or Decimal Point Indicates the separation of dollars and cents.
    Zero, numeric 0, Dash, None or N/A "ZERO" , numeric "0" , "DASH" , "NONE" or "N/A" are considered valid entries except when specific instructions require editing of an entry.
    Edit Marks Made by Other IRS Functions Edit marks entered by other areas, such as Collections, Entity or Accounts Management, are not to be re-edited except to place the marks in the correct area or to perfect for legibility, or correct format. Do not edit (or write) over another area’s edit marks.
    Rocker Indicates the amount paid when drawn under a remittance amount.

♦Action Codes♦

  1. ERS Action Codes are used on Form 3520-A to indicate whether correspondence, research or some other action is needed. The Action Code will set the suspense period to be assigned to the return and place the return in the workable or unworkable suspense inventory.

  2. When necessary, a three-digit Action Code will be assigned and edited by the tax examiner on Form 3520-A returns.

    Note:

    When corresponding on a Form 3520-A, you should NEVER correspond with the Trust. Correspondence should always be addressed to the U.S. Owner. Name and Address information is found on Page 3, Line 6a - 6g.

  3. Edit the Action Code in the bottom left margin of Form 3520-A when required. Three-digit Action Codes are not edited on Form 3520.

  4. Assign Action Codes in the following priority:

    1. Action Code 310 (Statute Control).

    2. Action Code 320 (Entity Control)

    3. Action Code 4XX.

    4. Action Code 6XX.

    5. Action Code 3XX.

    6. Action Code 2XX (Correspondence)

  5. Use the following table if more than one Action Code is needed.

    If... Then...
    Action Codes have the same priority,
    1. Edit the Action Code with the shorter suspense period on the Form 3520-A.

    2. Edit the second Action Code on the Form 4227, Intra-SC Reject or Routing Slip.

    3. See IRM 3.21.19.10.2(8), Action Codes for suspense periods.

    Action Codes have different priorities,
    1. Edit the Action Code with the higher priority on the Form 3520-A.

    2. Edit the second Action Code on the Form 4227, Intra-SC Reject or Routing Slip.

    .

  6. Edit the following Action Codes when a return cannot be perfected from the information present:

    Action Code Description
    211 (First Domestic Correspondence) or
    215 (International Correspondence)
    • Return is so illegible, incomplete or contradictory that it is not acceptable for computer processing

    • The Foreign Trust notates on the return or attachment that they are reporting tax for more than one Tax Period or for more than one type of tax.

    225 (Missing Signature Domestic Correspondence) or
    226 (Missing Signature International Correspondence)
    Unsigned return (when signature is the only issue for correspondence).
    480 (Early Filed-Suspense) Early filed return.
    610 (Renumbered non-remittance) or 611 (Renumbered with-remittance) A return mis-blocked (e.g., Form 1065 is found in a Form 1120 batch of work).
    640 (Void) To delete the assigned Document Locator Number (DLN) on the return (e.g., Re-entry Returns).
    650 (International) An international return that must be forwarded to Ogden Submission Processing Campus (OSPC).
  7. Continue perfecting the return after editing the Action Codes.

  8. Valid Action Codes are listed below:

    Action Code Description Workday Suspense Period
    211 First Domestic Taxpayer Correspondence 40
    212 Second Correspondence 25
    215 International Correspondence 45
    225 Domestic Taxpayer Correspondence (signature only) 40
    226 International Correspondence (signature only) 40
    310 Statute Control 10
    320 Entity Control 10
    331 Frivolous Review 3
    341 Manual Refund 10
    342 Credit Verification 10
    343 Black Liquor 10
    352 Name Research 3
    360 Other-in-House Research 10
    420 Management Suspense A 5
    440 Management Suspense C 15
    450 Management Suspense D 20
    480 Early Filed Suspense 150
    610 Renumber Non-remit 0
    611 Renumber Remit 0
    640 Void 0
    650 International 0

Unprocessable Conditions

  1. Follow local procedures in handling routine unprocessable conditions when no written instruction is provided.

    Example:

    A Campus might prepare a Form 4227, whereas another may just place the unprocessable document in a bucket for further action.

  2. A return must contain the following specific items before it is considered processable. After initial research, if the return cannot be perfected, then edit Computer Condition Code (CCC) "U" and route to the appropriate area.

    • An Employer Identification Number (EIN).

    • A legible name (for the Name Control).

    • A valid Tax Period (200012 and subsequent).

  3. Conditions which make a document unprocessable may require further research. Route documents to Entity Control for IDRS research if the following conditions cannot be perfected from information on the return and attachments:

    1. The name is so illegible or incomplete that the Name Control cannot be determined.

    2. The EIN contains other than nine numeric characters

    3. There is more than one EIN.

  4. Conditions which make a document unprocessable may require correspondence with the taxpayer. When corresponding, edit CCC "U" on Form 3520 or the appropriate action code (211/215/225/226) on Form 3520-A, and prepare Letter 3653C Correspondence Action Sheet (CAS) for the following conditions:

    1. Data entries are so incomplete or illegible that they cannot be perfected or transcribed.

    2. The return is unsigned.

    3. The return has only entity data and no other statements or attachments from the taxpayer.

    4. Any condition set forth as unprocessable in the sections on processing specific documents.

  5. If the filer has stated that they have combined information for more than one tax period or more than one type of return, prepare Letter 3653C Correspondence Action Sheet (CAS) and request the taxpayer provide a separate return for each tax period.

♦Correspondence♦

  1. Issue correspondence to resolve any conditions causing the return to be unworkable or unprocessable. Initiate correspondence with the primary U.S. taxpayer only, on Form 3520 page 1, Lines 1a - 1h, or Form 3520-A, page 3, Lines 6a - 6g.

    • Do not correspond with the Canadian Bankers Association.

    • Any exceptions must be approved by the designated LB&I representative.

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

  2. If U.S. Owner information on Form 3520-A, page 3, Line 6a - 6g is blank, issue correspondence to U.S. Agent on page 1, Line 3a or Trustee on page 1, Line 4a using Letter 3653C CAS, mark Line 33 (and any other issues). Also mark Line 37 with the following narrative:
    "Information in this letter pertains to (Name of Foreign Trust)."
    (Insert the foreign trust name from Form 3520-A, page 1, Line 1a.)

    Note:

    If the U.S. Owner, U.S. Agent and Trustee are all blank on Form 3520-A, the workleader should refer the case to the P&A Analyst to contact the Headquarters Analyst for instructions.

  3. There are two types of correspondence that Code & Edit may encounter:

    • Correspondence received from taxpayers, and

    • Correspondence issued to taxpayers.

  4. If the return is incomplete and appears to be a duplicate, give the return to the lead. The lead will initiate research for a Transaction Code (TC) 150 and/or any other research necessary to determine if the return should continue to be processed or other actions taken. If there is an indication that the return is a response to Letter 3653C, route to ERS/Rejects.

  5. Form 3520 only:Always prepare Letter 3653C CAS, mark Line 1, and edit CCC "U" on a blank Form 3520 return where the taxpayer states they have no activity to report.Inform the U.S. Owner that they must complete the 2nd checkbox on page 1 of Form 3520, and Part II of the form.

    Note:

    Beginning with 1997, Form 3520 and its instructions required U.S. Owners of a foreign trust to complete Part II of Form 3520 even if they did not have any transactions with the trust that were reportable on Parts I or III. However, this requirement was not explicitly stated in the Code. Legislation, effective for tax years beginning after March 18, 2010, codifies this requirement that a U.S. owner of a foreign trust must file a Form 3520 every year.

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

    If... And... Then...
    Correspondence is needed Requires a response,
    1. Complete Letter 3653C CAS indicating the Master File Tax (MFT) code, and the appropriate paragraphs.

      Note:

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

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

    3. Edit Action Code 211 (domestic) or "215" (international) on Form 3520-A, or CCC "U" on Form 3520.

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

    Correspondence is needed Does not require a response,
    1. Complete Letter 3653C CAS or appropriate CAS indicating letter number, MFT, and the appropriate paragraphs.

      Note:

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

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

    3. Forward the copy to the Correspondence Area.

    4. Edit an Action Trail (e.g., 3653C SENT ) in the lower left corner going vertically up the side of the return.

    5. Finish editing the return and leave in batch.

    Note:

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

♦Correspondence Imaging System (CIS) Returns♦

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

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

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

    If... Then...
    The edit marks are black, Underline the edit mark if correct or circle if incorrect.
    The edit marks are red or green, Circle if incorrect.
    The edit marks are missing or incorrect, Perfect as necessary
  4. Follow the instructions below for processing "CIS" returns:

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

    2. Remove the return from the batch and route to AM.

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

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

♦Foreign Currency♦

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

Attachments to Form 3520 - Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts

  1. Form 3520 and Form 3520-A must be in page order. All other attachments and/or statements are to be placed behind page 6 of Form 3520 (page 4 of Form 3520-A).

    Note:

    At times the taxpayer may attach a statement to Form 3520 describing entries for Lines 5, 7b, 11b, 13, 15, 16, 17,19, 20, 24, 25, 28, 54 and 55. Edit/transfer the data from the attachment to the corresponding line, but not more than the number shown for the "More than Indicator." In addition, edit/transfer the "Totals" amount from the attachment to the "Totals" line for Lines 13, 24 and 25. Delete notations such as see attached, see statement, Statement 1, same as, etc., after editing the data from the attachment.

  2. Examine all attachments to the return being processed and take action as required by the attachment. See IRM 3.21.19.13 or IRM 3.21.19.13.1 for instructions for specific attachments.

  3. When an attachment has an effect on the document being processed, leave it attached or photocopy the attachment (e.g., Page 3 and 4 of Form 3520-A) and attach the copy to the return, unless a specific instruction requires that it be detached.

    Example:

    If the taxpayer requests an address change, the entity on the front of the return should be changed and the request should be left attached to the return.

  4. Leave any extension form (which is applicable to the Form 3520 or Form 3520-A itself or to the filer’s income tax return) attached to the return.

  5. If Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authority, is attached to correspondence, review the correspondence to determine if other requests are involved:

    1. If other requests are involved, photocopy the correspondence and send the copy, along with the authorization to the Centralized Authorization File (CAF) function for processing.

    2. If other requests are not involved, send the original correspondence and the authorization to the Campus CAF function for processing.

  6. If the taxpayer has requested that an attachment be returned:

    1. Photocopy the attachment and attach it to the Form 3520 or Form 3520-A.

    2. Return the original attachment to the taxpayer using Form 3699, Return of Documents to Taxpayer.

  7. If Form 3520 has an original signed Form 3520-A (pages 1-3 or 1-4, with possible multiple pages 3 and/or 4) attached to it, photocopy all pages 3 and/or 4 and attach the copy(s) to Form 3520. Detach and forward the original Form 3520-A to Batching to get re-batched under program 12320. Photocopies of Form 3520-A attached to Form 3520 are to remain attached, however, "X" out all pages of Form 3520-A.

    Note:

    If an exact copy of page 3 and/or 4 of Form 3520-A is attached, that copy may be used as supporting documentation, and attached to the Form 3520.

  8. Do not remove any attachment requesting an adjustment.

    Reminder:

    If the attachment does not include the taxpayer’s name, address, Tax Identification Number (TIN) or received date, enter this information on the attachment.

  9. For other Unrelated Attachments see Routing Guide IRM 3.21.19.13.1.

    Reminder:

    Leave an "Action Trail" in the bottom left margin of Form 3520, notating the attachments removed from the Form 3520.

♦Routing Guide for Attachments♦

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

    1. Attachments should only be detached when specifically instructed.

      Note:

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

    2. Edit Action Trail(s) (e.g., "2848 DETACHED" ) in the lower left corner going vertically up the side of the return.

  2. The following acronyms are found within the routing guide:

    • BMF - Business Master File

    • CAF - Central Authorization File

    • CAMC - Cincinnati Accounts Management Center

    • EIN - Employer Identification Number

    • IMF - Individual Master File

    • ITIN - Individual Taxpayer Identification Number

    • NDC - National Distribution Center

    • OAMC - Ogden Accounts Management Center

    • POA - Power of Attorney

    • TIN - Taxpayer Identification Number

  3. Follow the general guidelines written below for each attachment.

    DOCUMENT/FORM DETACH ACTION
    A General Power of Attorney or a Durable Power of Attorney or Tax Information Authority is submitted on any document other than Form 2848 or Form 8821. YES Detach after verification of the signature along with the written statement POA (see IRM 21.3.7.7.5 in regards to the written statement) and submit directly to the International CAF team in Philadelphia according to the IRM 21.3.7.7

    Note:

    International Processing, Internal Revenue Service International CAF MS 3-E08.123, 2970 Market St. Philadelphia, PA 19104

    Closing Agreement NO Leave attached
    TD F 90-22.1, Obsolete NO Take No Action
    FinCEN Form 114 (replaces TD F 90–22.1) NO Form must be filed electronically. If copy is attached, take no action.
    Form 14157, Complaint: Tax Return Preparer YES Route to:
    Attn: Return Preparer Office
    401 W. Peachtree Street NW
    Mail Stop 421-D
    Atlanta, Georgia 30308
    CP 259/959 (Spanish version), or CP 518, NO Correspondence is attached or taxpayer’s response indicates any of the following:
    • Taxpayer disagrees that they are required to file the return.

    • Only page one of the return is attached.

    • EIN on notice does not match EIN on return.

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

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

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

    Then, Route to Compliance Services Collection Operations (CSCO). Use return address on Computer Paragraph (CP) notice;
    • Brookhaven - Stop 662

    • Memphis - Stop 81

    • Philadelphia - 4-N31.142


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

    2. Continue processing the return.

    Note:

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

    Includes tax liability for Multiple Tax Periods or Types of Tax NO
    • Numbered returns, route to Rejects.

    • Unnumbered returns, prepare a dummy return if possible: otherwise, correspond.

    Other Tax Returns (original signature) YES
    1. Edit received date to the detached return.

    2. Route to appropriate function unless specifically directed otherwise.

      Exception:

      Returns attached to a consolidated return will NOT be detached.

    Petitions in opposition of tax law provisions Yes

    Note:

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

    Route to:
    IRS
    ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1111 Constitution Avenue, NW
    Washington, DC 20224
    State Tax Returns, original or copy, with an original signature YES Route to Receipt and Control.
    State Tax Returns (Photocopy, facsimile or no signature) NO Leave attached.
    Statement establishing Reasonable Cause for delinquent filing NO
    1. Issue Letter 1382C (See IRM 3.21.19.14.2 (7))

    2. Continue editing the return.

    Remittance Found NO Immediately hand-carry return and remittance to Supervisor.
    Request for Acknowledgement NO No action required
    Request for information or inquiries YES
    1. Photocopy any data necessary to process the return

    2. Attach the photocopy to the return.

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

    Request for Adjustment to Form 3520 or Form 3520-A YES Route to OAMC, BMF INT’L Unit. Attachment must contain Name, Address, EIN and Received Date. Edit if missing.
    Request for Forms or Schedules NO If requesting current year forms:
    1. Prepare Form 4190.

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



    If requesting prior year forms:
    1. Prepare Form 6112.

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

      Note:

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

    Form 2848, Power of Attorney and Declaration of Representative YES
    • Edit taxpayer name and TIN on Form 2848 if missing.

    • Edit received date on Form 2848.

    • Route Form 2848 to CAF function.

    • Edit action trail on tax return.

    Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts YES

    Note:

    If with original signature

    Route to Receipt and Control for rebatch, or follow local procedures. See IRM 3.21.19.13 (7)
    Form 3520-A, Annual Return of Foreign Trust With a U.S. Owner YES

    Note:

    If with original signature

    Route to Receipt and Control for rebatch. See IRM 3.21.19.13 (7)
    Form 4970, Tax on Accumulation Distribution of Trusts NO Leave attached
    Form 5471 or Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business YES Route to Receipt and Control for rebatch.
    Form 5495, Request for Discharge from Personal Liability Under Internal Revenue Code Section 2204 or 6905 NO Leave attached
    Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns YES/NO If the extension is for a different period or different Form, detach and Route to Receipt and Control for re-batch. If the Form 7004 is a photocopy, do not detach.
    Form 8582, Passive Activity Loss Limitations. NO Leave attached
    Form 8809, Application for Extension of Time to File Information Returns NO Leave attached
    Form 8821, Tax Information Authorization YES
    • Edit taxpayer name and EIN on Form 8821 if missing.

    • Edit received date on Form 8821.

    • Route Form 8821 to CAF function.

    • Edit action trail on tax return.

    Form 8822, Change of Address, or Form 8822-B, Change of Address - Business, is attached YES Mailing address information is the same and no location address is listed on Form 8822 or Form 8822-B, line 7, take no action and continue processing. Route to Entity Control if the address is different than what is on the form’s entity.
    Mailing address information is different and/or a location address is listed on Form 8822 or Form 8822-B, line 7.
    1. Enter address shown on Form 8822 or Form 8822-B in Field (form specific) FAD.

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

    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

    Form SS-4 Application for Employer Identification Number YES/NO Loose/detached Form SS-4 are processed by EIN Operations in CAMC (Stop 532G)

    Note:

    Leave the Form SS-4 attached if the return has already been to Entity and had an EIN assigned.

    Form W-7, Application for IRS Individual Taxpayer Identification Number.

    Note:

    Along with all the documentation attached to it (e.g., passport, birth certificate, etc.)

    YES Transship to:
    Internal Revenue Service
    ITIN Operation, Stop 6052
    3651 S. IH 35
    Austin, TX 78741
    Section 108(i) Election NO Leave attached
    Form 14039-B, Business Identity Theft Affidavit NO If the envelope is addressed to a specific function or a specific function is indicated by an IRS CP notice or IRS letter, place the Form 14039-B on top and route Form 14039-B and the return to the specific function.

    For the following returns:
    • Loose Form 14039-B.

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

    • The envelope is not addressed to a specific function.


    Place the Form 14039-B on top of the return and route to Image Control Team (ICT), Ogden - Mail Stop 6552.
    Statements:
    • Foreign Nongrantor Trust Beneficiary Statement

    • Foreign Grantor Trust Beneficiary Statement

    • Foreign Grantor Trust Owner Statement

    • Fideicomiso statements

    • Attachment statement to support line entries.

    NO Leave attached

Special Conditions

  1. Use the following instructions when processing special or nonstandard returns for both Form 3520 and Form 3520-A

♦Amended Returns♦

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

    • The Amended box is checked

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

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

      Note:

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

  2. Examine the return for attachments.

    • Do not separate any related attachments submitted to explain the reason for the Amended return (information may be useful to Accounts Management).

    • Detach any unrelated documents and route them to the appropriate function using Form 4227 and edit the Action Trail on the return

  3. If you receive an Amended or Corrected Form 3520 or Form 3520-A, do not edit Computer Condition Code (CCC) "G" or U on the return; Instead do the following:

    • Attach Form 4227 to the amended/corrected Form 3520 or Form 3520-A and write "Amended Return" in the remarks area.

    • Send to Ogden Accounts Management Campus (OAMC), BMF INT'L unit. In the remarks area, write Amended Form 3520 or Form 3520-A

  4. There is an indication the return is amended and (This does not apply to Form 3520):

    If... Then...
    "Transaction Code (TC) 59X" or "ICS" was edited on the return by Compliance Services, Do not edit CCC "G." Process the return as an original.
    The return is stamped "Delinquent Original Cleared for Processing" by Statutes, Do not edit CCC "G." Process the return as an original.
    Form 3893 or Form 13596 is attached, Do not edit CCC "G."
    None of the above are present, See paragraph (3) above.
  5. The following data must be edited on all amended returns:

    1. Name control

    2. EIN

    3. Tax period

    4. IRS Received Date

    5. Signature

Delinquent Return

  1. A return is normally delinquent if it is not received on or before the return due date. However, accept the return as timely filed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See IRM 3.10.72, Receiving, Extracting, and Sorting or IRM 3.10.73, Batching and Numbering.

    Note:

    Do not research the taxpayer’s filing requirements on a late filed Form 3520 or Form 3520-A.

  2. Accept a return as timely filed if the return was mailed in time to reach the Service through normal handling within the legal period but, through no fault of the taxpayer, it was not delivered.

    Note:

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

  3. Consider a return timely if one of the following conditions exist:

    1. It appears that the Post Office might have sent it to another government agency in error.

    2. The original envelope bears a timely postmark or a timely date stamp by that agency.

      Note:

      If the return was erroneously addressed to another agency, it will be date stamped with the current date when the IRS received it.

  4. Consider a return timely if it is received or postmarked on the next workday when the last day for filing falls on a Saturday, Sunday, or legal holiday.

  5. The due date for Form 3520 is the same as the due date of their individual income tax return (4/15 for Form 1040).

    Reminder:

    The business master file (BMF) automatically generates a CP 223 to the Ogden Accounts Management (AM) department when Form 3520 is filed late. AM in turn assesses a civil penalty to the U.S. Owner.

    1. If the filer is a U.S. citizen or resident alien residing overseas, or is an individual in the military on duty outside of the United States, the regular due date (without extensions) for tax year 2017 is June 15, 2018.

    2. The due date is extended to the next business day when the regular due date falls on a Saturday, Sunday, or legal holiday.

  6. The due date for Form 3520-A is the 15th day of the 3rd month after the end of the Foreign trust’s tax year (it can be a fiscal or calendar year filer)

    1. The U.S. Owner can file an extension of time to file Form 3520-A with Form 7004.

      Note:

      The business master file (BMF) automatically generates a CP 223 to the Ogden Accounts Management (AM) department when Form 3520-A is filed late. AM in turn assesses a civil penalty to the U.S. Owner.

  7. If the return (Form 3520 or Form 3520-A) is delinquent, check the return for an explanation of late filing. If the taxpayer attaches correspondence with a reasonable cause explanation for failure to file a timely return:

    • Do not detach the reasonable cause statement from the original return.

    • Prepare correspondence action sheet for IDRS Letter 1382C (use paragraphs "A, and S" ) and assign it to a clerk for input to IDRS, or follow local procedures. It may or may not include the Rejects function.

    • Continue processing Form 3520 or Form 3520-A. Do not attach the correspondence action sheet 1382C to the return, leave an action trail indicating the letter was prepared, (e.g., Ltr 1382C MMDDYY).

♦Compliance Secured/Prepared Returns♦

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

    1. Prepared tax returns are notated with "6020(b)" or "SFR" (Substitute for Return).

    2. Secured tax returns are notated with "TC 59X" or "ICS" (Integrated Collection System) or notated "Process as Original" with an attached Form 13133, Expedite Processing Cycle. The "Delinquent Return" box on Form 13133 should be checked.

    Note:

    If "RD" (Return Delinquency) is notated on the front of the return and not circled, remove from the batch and route to Collections.

♦IRC 6020(b) - Prepared by Collection♦
  1. When the taxpayer fails to file a required return, IRC 6020(b) is the authority for the IRS to prepare the return.

  2. These returns are identified by the notation: "PREPARED AND SIGNED UNDER THE AUTHORITY OF SECTION 6020(b) OF THE INTERNAL REVENUE CODE" which is located in the center bottom of Page 1 of the return.

    1. Returns must have an IRS Received Date. If missing, follow the normal procedures for editing the IRS Received Date. See IRM 3.21.19.17.

    2. Returns must be signed by Compliance Function representatives. If not signed, route to Compliance using Form 4227.

    3. Edit CCC "4" . See IRM 3.21.19.18.10.

      Note:

      CCC "R" should not be used with CCC "4" .

    4. Do not correspond with the taxpayer for unprocessable conditions. If the return is unprocessable, edit CCC "3" and continue processing.

    5. Edit CCC "W" on Form 3520-A if the IRS Received Date is more than two years and nine months after the Return Due Date. Do not send Form 3520 or Form 3520-A to Statute Control. Do not edit CCC W on Form 3520.

♦Collection Secured♦
  1. These returns are identified by the notations: "TC 59X" or "ICS" .

    1. Do Not edit CCC "G" on these returns.

    2. Use Letter 3653C CAS to correspond for conditions that cannot be processed (e.g., missing signatures, missing/incomplete information, etc.).

    3. Edit CCC "W" on Form 3520-A if the Received Date is more than two years and nine months after the Return Due Date. Do not edit CCC Won Form 3520. Do not send returns to Statute Control Unit.

♦Examination Prepared♦
  1. These returns are identified by the notation: "SFR" or "SUBSTITUTE FOR RETURN" on Page 1.

    1. Return must have an IRS Received Date. If no IRS Received Date is present, follow the normal procedures for editing the Received Date. See IRM 3.21.19.17.

    2. Do not correspond with the taxpayer for unprocessable conditions. If the return is unprocessable, use No Reply procedures and edit CCC "3" and continue processing.

    3. If Form 13133 is attached, edit the Computer Condition Codes that are checked on the form.

      Note:

      CCC "R" should not be used with a CCC "4" .(CCC 4 only used for 6020B returns)

    4. Edit CCC "W" on Form 3520-A if the Received Date is more than two years and nine months after the Return Due Date. Do not edit CCC W on Form 3520. Do Not send returns to Statute Control.

♦Examination Secured♦
  1. These returns are identified by the notation: "Process as Original" or "Secured by Exam" on Page 1 of the return and a Form 13133, Expedite Processing Cycle, attached with the "Delinquent Return" box checked.

    1. Do Not edit CCC "G" on these returns (Form 3520 or Form 3520-A returns).

    2. Use Letter 3653C CAS to correspond for conditions that cannot be processed (e.g., missing signatures, missing/incomplete information, etc.).

    3. Edit the Computer Condition Codes that are checked on Form 13133

      Note:

      CCC "X" (Hold Credits on Module) is not valid for Form 3520 or Form 3520-A.

    4. Edit CCC "W" on Form 3520-A if the Received Date is more than two years and nine months after the Return Due Date. Do not edit CCC W on Form 3520. Do not send returns to Statute Control Unit.

Foreign Address Returns
  1. The presence of a Foreign Address for the filer allows the return due date to be extended by two months. Edit CCC R to suspend initiation of the CP 223 notice.

♦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 illegally 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, shown in Exhibit 3.21.19-5, Frivolous Arguments Criteria.

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

    If... Then...
    The return meets any of the conditions identified as a frivolous return, (See Exhibit 3.21.19-5

    Note:

    Exception

    if the return shows CCC "U" or shows an Action Code 331 or has a Form 4227 attached 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 3.21.19. However, do not circle or void the Action Code indicating a frivolous return.

    Note:

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

♦Re-Entry Document Procedures♦

  1. A return posted to the wrong account or module or attempting to post must be reprocessed to post to the proper account or module.
    A Re-entry document is referred to as:

    • A Re-input return (a return that has not posted to the master file, e.g., unpostable).

    • A Re-processable return (a return that has posted to the master file, e.g., return posted to the wrong account or module).

    `

  2. Some re-entry returns may have originally been filed electronically (E-File). These returns may be identified by the presence of Mod E-File printouts in lieu of the actual return. Do not correspond for missing signatures on these documents.

  3. Each re-entry return must have a Form 3893, Re-entry Document Control, or Form 13596, Reprocessing Returns, attached.

    • Form 3893 is used to reinput documents that have not posted to an account or module.

    • Form 13596 is used to reprocess documents to the correct account or module that had previously posted to the wrong account or module.

  4. Always leave the Form 3893 or Form 13596 on the front of the return. It must remain as a permanent part of the document.

  5. Examine Form 3893 to determine the action needed to make the return processable.

    If... Then...
    Form 3893 is missing
    1. Edit CCC "U" on return.

    2. Route to Receipt and Control using Form 4227.

    3. Use local procedures for routing.

    Form 3893 is attached Determine if the return was edited according to current processing instructions.

    Caution:

    If the Received Date is more than two years and nine months after the Return Due Date, refer to Statute procedures before re-entering or reprocessing the return. See IRM 3.21.19.14.5. Statute editing may be required on Form 3520-A.

  6. If additional information is needed to make the return processable, prepare Letter 3653C CAS, or follow local correspondence procedures.

    1. Enter CCC "U" on Form 3520, or enter Action Code 211 (domestic) or 215 (international) on Form 3520-A.

    2. Attach the completed Letter 3653C CAS and edit the rest of the return, or follow local correspondence procedures.

♦Form 3893 - Re-entry Document Control♦
  1. Form 3893, Re-entry Document Control, is used to re-input a return that has not posted to an account or module.

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

  3. Circle the CCC "G" if present.

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

  5. Do not send Letter 1382C if a request for reasonable cause is attached, because this responsibility belongs to the customer service representative initiating the re-entry document.

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

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

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

    2. Do not change any tax due amounts.

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

    If... Then...
    Improper perfection Edit the same correction in red to the appropriate area.
    Taxpayer error Leave the entries as shown on the document.
  9. An IRS Received Date must be present on all re-input returns:

    If... Then...
    IRS Received Date is not present Edit an IRS Received Date (See IRM 3.21.19.17).
    Multiple received dates are present Circle out all but the earliest date.
  10. When additional information is still needed to make the return processable, prepare Letter 3653C CAS or Form 4227 for the appropriate action (e.g., correspondence, research, etc.).

  11. When perfection is not possible, edit CCC U (Form 3520) or Action Code 640 (Form 3520-A) and attach Form 4227 noting, "PERFECTION NOT POSSIBLE" and return to initiator.

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

  2. Circle CCC "G" if present.

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

  4. Do not send Letter 1382C if a request for reasonable cause is attached, because this responsibility belongs to the customer service representative initiating the re-entry document.

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

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

    Form 13596 Action Taken
    TIN correction Edit correct TIN on return.
    Tax Period correction Edit correct Tax Period ending on return.
    Reasonable Cause Edit appropriate Computer Condition Code:

    Note:

    Does not apply to Form 3520 or Form 3520-A.

    1. Edit CCC "R" if the Failure to File ("FTF" ) box is checked.

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

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

    If... Then...
    Improper perfection Edit the same correction in red to the appropriate area.
    Taxpayer error Leave the entries as shown on the document.
  8. An IRS Received Date must be present on all reprocessed returns:

    If... Then...
    IRS Received Date is not present Edit an IRS Received Date (See IRM 3.21.19.17).
    Multiple received dates are present Circle out all but the earliest date.
  9. Circle out the green rocker or green check and edit marks that may indicate a receipt of remittance.

♦Statute Returns♦

  1. Any return with a received date that is more than two years and nine months after the Return Due Date may require special Statute editing.

  2. Form 3520 and Form 3520-A are Information Returns and do not require Statute Clearance. Edit as follows:

    1. Form 3520 with a received date that is more than two years and nine months after the Return Due Date, continue processing. Do not route to Statute Control Unit, and do not edit CCC "W" .

    2. Form 3520-A with a received date that is more than two years and nine months after the Return Due Date, edit CCC "W" and continue processing. Do not route to Statute Control Unit.

♦Protective Claims♦

  1. Returns marked as "Protective Claims" , "Protective Claim for Refund" , or similar statement will be removed from the batch and routed to OAMC. Notate Protective Claim in the remarks box of Form 4227.

    Exception:

    If the return is amended, see IRM 3.21.19.14.1 (3)

♦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:

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

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

  3. Other CI Referral Criteria

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

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

    1. Make a copy of the return.

    2. Attach Form 4227 to the copy.

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

      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 does not restrict SP with the flexibility to refer questionable returns other than what is currently identified in various IRMs.

Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts

  1. Form 3520 is processed at the Ogden Submission Processing Campus (OSPC) under Program Code 12310 with the following Master File Tax (MFT) Code and Document Locator Number (DLN) make-up:

    • MFT Code 68,

    • File Location Code 60;

    • Tax Class 3,

    • Doc. Code 83;

  2. Form 3520 is the annual return used to report

    • Certain transactions with Foreign Trusts, and/or

    • Ownership of a Foreign Trust by a U.S. person, and/or

    • The receipt of certain foreign gifts or bequests by U.S. Persons from foreign persons. See Exhibit 3.21.19-1.

    Note:

    Data will transcribe all taxpayer entries; code and edit all information given regardless if the applicable box is checked.

  3. Form 3520 is to be filed annually by U.S. individuals, corporations, fiduciaries, partnerships, etc., to:

    • Report the creation of a foreign trust by a U.S. person during the tax year;

    • Report certain transfers of money or other property to a foreign trust by a U.S. person during the tax year.

    • Identify U.S. persons who are treated as owners of a foreign trust during all or part of the tax year;

    • Provide information about distributions received by a U.S. person from a foreign trust during the tax year;

    • Report the receipt of a loan to a U.S. person from a foreign trust during the tax year.

    • Report the receipt of uncompensated use of trust property by a U.S. person from a foreign trust (applicable only after March 18, 2010) or

    • Provide information about certain gifts or bequests received by a U.S. person from foreign person.

  4. Form 3520 is to be filed with the Ogden Submission Processing Campus.

  5. Form 3520 can be filed with an SSN, ITIN, or EIN. Line 2b must be an EIN (except for instances of a onetime disclosure of a gift).

  6. Form 3520 is a "Non-Remittance" return.

  7. Form 3520 received and missing page 1, dummy page 1 from attachments if possible.

  8. An extension (Form 4868) to file the U.S. taxpayer's annual tax return is also an extension for the filing of Form 3520.

    Note:

    Send loose pages of Form 3520-A to Accounts Management to be scanned into CIS (civil penalty ISPJ) and reassign to OSC.

Pre-Master File Processing of Form 3520

  1. Reject any Form 3520 filed for tax period ending December 31, 1997 and prior.

  2. Rejection Action:

    1. Prepare Form 3210, Document Transmittal, and write "ALPHA" in the remarks section of the transmittal. Address the transmittal to "Cycle Control M/S 6725."

    2. Attach Form 4227 with explanation "199712 return or prior" to the face of the document and write the same explanation on the first line of Form 3210.

  3. Form 3520 with tax periods 199812 and later are processed through the pipeline at OSPC. See IRM 3.21.19.35.1 for information on pre-master file processing of Form 3520-A.

Tax Period

  1. All returns must have a Tax Period indicating the year and month the tax year ended.

  2. Edit the Tax Period on all Form 3520 and Form 3520-A returns in YYYYMM format in the margin to the left of the pre-printed tax period if it is not a current calendar year return. If the tax period is prior to 199812 for Form 3520, see IRM 3.21.19.15.1, or prior to 200012 for Form 3520-A, see IRM 3.21.19.35.1 for Pre-Master File processing instructions.

    Figure 3.21.19-1

    This is an Image: 34014001.gif
     

    Please click here for the text description of the image.

  3. In the absence of an affirmative indication, the tax period, by "default" is the calendar year printed on the return.

    If... Then...
    The return is for the current processing year No editing is required.
    The return is for a prior year Edit the Tax Period in YYYYMM format.
    The taxpayer has notated a Tax Period other than the preprinted year on the return Edit the Tax Period in YYYYMM format based on the taxpayer’s indication.
    The Tax Period is missing, incomplete or illegible
    1. Review the return or attachments for the correct period.

    2. If found, edit the Tax Period to the right below the form name.

    3. If unable to determine the Tax Period after researching, edit the return for the year currently being processed.

  4. A Tax Period should end on the last day of a month except as otherwise specified below.

    Note:

    Ignore a minor discrepancy such as October 30, instead of October 31.

  5. Tax periods reported under the 52-53 week rule may not end more than six days before or three days after the end of a month.

    If... Then...
    The tax period ending date is not more than three days after the beginning of the month edit the previous month.
    The tax period ending date is in the middle of the month edit the month shown. See Figure 3.21.19-2
    The tax period ending date is not more than six days before the end of the month edit the month shown. See Figure 3.21.19-2

    Figure 3.21.19-2

    This is an Image: 34014002.gif
     

    Please click here for the text description of the image.

"Final" Short Period Return

  1. A "FINAL" short-period return ends on the date the foreign trust was liquidated or distributed all of its assets.

    1. This may be any day of the month.

    2. Use the numeric designation of the month that the Taxpayer has designated as final.

      Example:

      October 16, 2017 would be 201710.

      If however, the taxpayer did not specify a month ending date, then edit "12" as the calendar month for the tax period.

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

  2. Use the numeric designation for the calendar month that precedes the received date of the return if a calendar year return is received before the end of the current processing year and the trust indicates that the return is a final return but does not specify a month ending date.

  3. For Fiscal Year returns, edit the Tax Period's month to one month prior to the Received Date when the Tax Period is the same month and year or later than the Received Date.

Early-Filed Return

  1. Early-filed Form 3520 must be held for processing until the beginning of the appropriate processing year. Therefore, route early filed returns to be held for processing to Rejects. Attach Form 4227, and edit CCC "U" (leave return in batch).

  2. An early-filed Form 3520 or Form 3520-A, is a return that is filed prior to January 1st of the processing year and must be held until January 1. (Tax period 201812 must be held until January 1, 2019).

Fiscal Year Return

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

  2. Edit the tax period on a fiscal year return in the YYYYMM format to indicate the year and month the tax period ended.

    Note:

    For example, on a return with a tax period ending September 30, 2017, edit "201709" .

♦Received Date♦

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

  2. An IRS Received Date is required on all Form 3520 and Form 3520-A returns. Use the chart below to perfect the received date.

    If... And... Then...
    The return is received within ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the legal or extended due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .   The return is considered timely.
    The due date falls on a weekend or legal holiday,   The return is timely if postmarked by the first business day following the weekend or legal holiday.
    If the received date for Form 3520 is after April 15 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or for Form 3520-A is after the 15th day of the 3rd month after the end of the trust's taxable year (which generally would be March 15th for calendar year foreign trusts) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Has a Reasonable Cause Statement attached. Edit CCC R to suspend initiation of CP 223 notice
    The IRS received date stamp is after the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the legal or extended due date The postmark or shipment date is on or before the legal or extended due date, Edit the IRS Received Date to agree with the postmark or shipment date.

    Note:

    The postmark or shipment date includes returns delivered by:

    • U.S. Postal Service,

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

    • Returns with a Foreign Postmark.

    Caution:

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

     

    Note:

    For certified mail only: If a postmark is not present, look for a "USPS.com Track and Confirm" record that has been attached to the return (should be before the envelope). Use the "Acceptance" date on the record to determine timeliness and follow normal editing procedures.

  3. The IRS Received Date may or may not be stamped on the face of the return.

  4. A valid IRS Received Date Stamp consists of the following:

    • The word "Received"

    • Month (alpha or numeric)

    • Day (numeric 01-31)

      Example:

      "1" or "01"

    • Year (numeric) - four digits

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

      Caution:

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

  5. If the IRS Received Date stamp is not present or the date is illegible or invalid, edit the IRS Received Date in MMDDYYYY format according to the following priority:

    Reminder:


    For Form 3520 Only — Edit the date or postmark date in the margin to the right of the 2nd checkbox that begins with "You are a U.S. owner of all..." .

    For Form 3520-A Only — Edit the date in the middle of Page 1, before Line 3a.

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

      If... Then...
      An envelope is not attached Use the postmark date stamped on the face of the return.
      A document was returned for insufficient postage, Use the postmark date that coincides with the correct delivery of the return.
      The postmark is missing and the envelope is certified Look for the USPS.com Track & Confirm record that has been attached to the return (should be before the envelope). Use the Acceptance date on the record to determine timeliness and follow normal editing procedures.
      An envelope has a USPS and private metered postmark Always use the USPS postmark.
      An envelope has a foreign and private metered postmark Always use the foreign postmark.
      An envelope has two private metered postmarks Always use the latest private metered 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 the postmark is timely and the document is received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the legal due date.

    2. Service Center Automated Mail Processing System (SCAMPS) digit date.

    3. Revenue Officer's signature date.

    4. Signature date (only if within current year).

    5. Julian Control Date minus 10 days.

    6. Current date minus 10 days.

  6. Edit the Received Date as follows:

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

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

    Note:

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

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

    Reminder:

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

  7. If Form 3520 or Form 3520-A with a current year tax period is received prior to January 1 of the current processing year:

    1. Edit the first day after the end of the tax period as the received date. For example, if the actual received date is "12122017" for a Tax Year 2017 return, enter "01012018."

    2. If present, circle out the stamped Received Date on the return.

  8. No editing is required if Form 3520 and Form 3520-A is received after January 1 and the received date is stamped.

  9. If a return has been faxed to another area of the service and then sent to Submission Processing for processing, do not edit the EEFax Date as the Received Date. Edit a Received Date according to normal procedures.

    Note:

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

Monthly Received Date Chart

  1. The tables below provide monthly return due date information for Form 3520 and Form 3520-A

    Note:

    Monthly Received Date Charts are subject to adjustments for State/D.C. Holidays.

    Form 3520

    Ending Date Due Date Weekends and Holidays considered Delinquent Ext Due Date Weekends and Holidays considered
    12-31-2017 04-17-2018 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 10-15-2018
    01-31-2018 05-15-2018 ≡ ≡ ≡ ≡ ≡ ≡ 11-15-2018
    02-28-2018 06-15-2018 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 12-17-2018
    03-31-2018 07-16-2018 ≡ ≡ ≡ ≡ ≡ 01-15-2019
    04-30-2018 08-15-2018 ≡ ≡ ≡ ≡ ≡ ≡ 02-15-2019
    05-31-2018 09-17-2018 ≡ ≡ ≡ ≡ ≡ 03-15-2019
    06-30-2018 10-15-2018 ≡ ≡ ≡ ≡ ≡ 04-15-2019
    07-31-2018 11-15-2018 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 05-15-2019
    08-31-2018 12-17-2018 ≡ ≡ ≡ ≡ ≡ 06-17-2019
    09-30-2018 01-15-2019 ≡ ≡ ≡ ≡ ≡ 07-15-2019
    10-31-2018 02-15-2019 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 08-15-2019
    11-30-2018 03-15-2019 ≡ ≡ ≡ ≡ ≡ 09-16-2019
     

    Form 3520-A

    Ending Date Due Date Weekends and Holidays considered Delinquent Ext Due Date Weekends and Holidays considered
    12-31-2017 03-15-2018 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 9-17-2018
    01-31-2018 04-17-2018 ≡ ≡ ≡ ≡ ≡ ≡ 10-15-2018
    02-28-2018 05-15-2018 ≡ ≡ ≡ ≡ ≡ 11-15-2018
    03-31-2018 06-15-2018 ≡ ≡ ≡ ≡ ≡ ≡ 12-17-2018
    04-30-2018 07-16-2018 ≡ ≡ ≡ ≡ ≡ 01-15-2019
    05-31-2018 08-15-2018 ≡ ≡ ≡ ≡ ≡ ≡ 02-15-2019
    06-30-2018 09-17-2018 ≡ ≡ ≡ ≡ ≡ ≡ 03-15-2019
    07-31-2018 10-15-2018 ≡ ≡ ≡ ≡ ≡ 04-15-2019
    08-31-2018 11-15-2018 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 05-15-2019
    09-30-2018 12-17-2018 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 06-17-2019
    10-31-2018 01-15-2019 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 07-15-2019
    11-30-2018 02-15-2019 ≡ ≡ ≡ ≡ ≡ 08-15-2019

Computer Condition Codes (CCC) - Form 3520

  1. Computer Condition Codes (CCC) are used to identify a special condition or computation for the computer. Edit ALL appropriate Computer Condition Codes in the order in which they are identified unless you are required to edit a CCC C, in which case, edit CCC C first. Data Conversion will transcribe the first (5).

  2. Edit the "CCC" at the end of Line A on Page 1, to the right of the Amended return checkbox. See Exhibit 3.21.19-1.

  3. Only the following entries are valid for Computer Condition Codes on Form 3520: C, F, G, I, N, R, U, Y, 3, 4, 5, and blank.

CCC "C" - No Reply to Request for Information

  1. Edit CCC "C" only when instructed, after the taxpayer fails to reply to IRS-generated correspondence. This action will generate a CP 223 to AM following posting of the return.

CCC "F" - Final Return

  1. Edit CCC "F" when:

    1. The "Final return" checkbox is checked, or

    2. There is a clear indication on the return itself or on an attachment that returns will not be required to be filed for future years.

CCC “G” - Amended Return

  1. CCC “G” indicates an Amended Return.

  2. CCC “3” and CCC “U” are the only Computer Condition Codes valid with CCC “G”.

  3. See IRM 3.21.19.14.1.

CCC "I" - Initial Return

  1. Edit CCC "I" (letter i) when the "Initial return" or "Initial return (extension filed)" checkbox is checked.

    • The return or attachments indicate "INITIAL" , "FIRST RETURN" or "FIRST TIME FILER," etc.

    • Remove the return from the batch, and route to Entity.

    • If there are indications that the return has already been sent to Entity, continue processing the return.

      Note:

      An Entity Stamp, a purple edited "E" or "F" , are all indications that the return has previously been sent to Entity.

  2. If an SSN or ITIN is present on Line 1b, forward the return to Entity Control Unit (ECU).

CCC "N" - Bypass Employer Identification Number (EIN)

  1. Edit CCC "N" to bypass the EIN requirement when the EIN is missing, incomplete, contains all the same numeric values; (e.g., all 9’s or zeros). Valid only on designated lines.

  2. Edit CCC “N” when the entry is blank, "NA" , or "None" in the following locations, and there is an entry on the corresponding Name Line:

    • Form 3520 Line 2b(1)

    • Form 3520 Line 3b

    • Form 3520-A, Part 1, Page 1 Line 3b

    • Form 3520-A, Part 1, Page 1 Line 4b

    • Form 3520-A, Page 4 Line 6b

CCC "R" - Suspend Initiation of CP 223 notice

  1. See IRM 3.21.19.14.2 (7).

  2. Edit CCC "R" when a Reasonable Cause Statement is attached to the return

    Caution:

    Edit CCC R on all returns until further notice.

CCC "U" - Unprocessable Return

  1. Edit CCC "U" to reject unprocessable returns. See IRM 3.21.19.11, Unprocessable Conditions .

  2. Do not edit CCC "U" on amended Form 3520 returns. See IRM 3.21.19.14.1 (3).

CCC “Y” - (Short Period Return) of the BMF Common Process

  1. Accept the return as submitted (e.g., short period return)

  2. CCC “Y” is edited for Change of Accounting Period. Enter only for short period returns due to change of account period (not due to initial or final filing).

  3. When the W&I Submission Processing Liaison for TAS issues, walks a return through Code & Edit, edit the CCC "Y" .

CCC "3" - No Reply to Correspondence

  1. Edit CCC "3" (No Reply to Correspondence) to bypass validation of the "CRD" (Correspondence Received Date) when the taxpayer fails to reply to IRS-generated correspondence.

CCC "4" - 6020(b) Return

  1. Edit CCC "4" when the IRS Compliance Function prepared a return and the Revenue Officer entered IRC 6020(b).

    Note:

    CCC "R" cannot be used with CCC "4"

    .

CCC "5" - Extension Requested on Form 1040

  1. Edit CCC "5" on all returns 2015 and later if “1040” is present on Line 1k of Form 3520. Not valid on 2014 and prior. Not valid on Form 3520-A.

CCC "9" - RESERVED

  1. CCC "9" is not valid on Form 3520 and should not be edited on Form 3520-A.

Type of Return Filer Checkbox - Question B

  1. Type of return filer must be present.

  2. Valid characters are "I" (i), "P" , "C" , "T" and "E" .

  3. Edit in the margin to the right of the checkboxes following the instruction "Check the box that applies to the U.S. person filing return" as follows:

    If... Then...
    "Individual" checkbox is checked Edit "I" .
    "Partnership" checkbox is checked Edit "P" .
    "Corporation" checkbox is checked Edit "C" .
    "Trust" checkbox is checked Edit "T" .
    "Executor" checkbox is checked Edit "E" .
    Multiple boxes are checked or if none of the boxes are checked Edit “I” as the default.

Foreign Trust Return Filer Status Check Box and Parts to Complete

  1. An entry must be present in at least one of the four checkboxes.

  2. Valid characters are “1” or blank.

  3. Edit a “1” to the left of the checkbox checked.

  4. Entries may be present in more than one of the checkboxes but cannot exceed 4.

  5. If multiple checkboxes are checked, edit a “1” next to each checkbox checked.

  6. A filer is required to complete specific sections of Form 3520 based on the checkboxes designated immediately above Line 1a of Page 1 of Form 3520.

    If... Then...
    Checkbox 1 (U.S. transferor) is Part I must be completed. See IRM 3.21.19.20.1.
    Checkbox 2 (U.S. owner) is Part II must be completed. See IRM 3.21.19.20.2.
    Checkbox 3 (U.S. beneficiary) is Part III must be completed. See IRM 3.21.19.20.3.
    Checkbox 4 (U.S. person who received gift) is checked Part IV must be completed. See IRM 3.21.19.20.4.

    Note:

    Data will transcribe all taxpayer entries; code and edit all information given regardless if the applicable box is checked.

  7. If the checkbox marked by the filer does not correspond with the part of Form 3520 required to be completed, then circle out the marked checkbox and edit a “1” to the left of the correct checkbox as it relates to the corresponding completed part of Form 3520 containing entries.

  8. If none of the checkboxes are checked, edit based on the sections or parts completed by the filer.

    Note:

    You may have to edit more than one checkbox on page one.

    If... Then...
    The filer provided entries in Part I Edit a “1” to the left of the first checkbox (U.S. transferor).
    The filer provided entries in Part II Edit a “1” to the left of the second checkbox (U.S. owner).
    The filer provided entries in Part III Edit a “1” to the left of the third checkbox (U.S. beneficiary).
    The filer provided entries in Part IV Edit a “1” to the left of the fourth checkbox (U.S. person who received gift).
  9. If there are some entries present, but you are unable to determine the correct checkbox, edit a “1” to the left of the first checkbox and continue editing the return.

    Note:

    If pages 2-6 of Form 3520 are blank, correspond with the taxpayer for a completed return, use Letter 3653C CAS and mark Line 8.

  10. If the filer did not complete the required lines of Part I, II, III or IV in accordance to the checked checkboxes on Form 3520, page 1, do the following:

    1. Prepare Letter 3653C CAS and ask the taxpayer to complete the required lines in each part for the checked boxes. See line by line instructions for further details.

    2. Address the letter to the foreign trust filer whose name and address is found on Lines 1a thru 1h on Form 3520, Page 1.

    3. Edit Computer Condition Code (CCC) "U" .

Checkbox 1, Part I - Required Lines

  1. The filer must complete Lines 5a through 19 in Part I. Correspondence may be necessary, refer to the table below.

    Note:

    If the first checkbox is marked and all Lines 5a-19 are blank, edit CCC "U" and correspond. Prepare Letter 3653C CAS and mark Line 25.

    If... And... Then...
    Line 3 Yes line 3a-3g are not complete Correspond; prepare Letter 3653C CAS, mark Line 9.
    Line 3 No line 15-18 are not complete Correspond; prepare Letter 3653C CAS, mark Line 10.
    Line 5a-Line 5c All are blank Correspond; prepare Letter 3653C CAS, mark Line 11.

    Note:

    Do not correspond for Line 5a when it is blank, “Same”, or “See Attached” and 5b and 5c have entries. Instead, edit from Line 1a or attachment.

    Line 6a-Line 6b All are blank Correspond; prepare Letter 3653C CAS, mark Line 11. Do not correspond for 6a-6b if Line 2g has an entry, instead edit from Line 2g.
    Line 6c Blank Do not correspond for Line 6c unless you are corresponding for other missing information.
    Line 7a "Yes" Line 7b, columns i-v blank Correspond; prepare Letter 3653C CAS, mark Line 12.
    Line 10 "Yes" Part 2, Lines 20-23 blank Correspond; prepare Letter 3653C CAS, mark Line 13.
    Lines 11a or 11b "Yes" Line 11i-iv and 12, if applicable, blank Correspond; prepare Letter 3653C CAS, mark Line 14.
    Line 13 "Yes" Line 13 a-i and 14, if applicable, blank Correspond; prepare Letter 3653C CAS, mark Line 15.
    Line 19 "Yes" Line 19 a-e blank Correspond; prepare Letter 3653C CAS, mark Line 16.

Checkbox 2, Part II - Required Lines

  1. The filer must complete Lines 22-23, in Part II. Correspondence may be necessary, refer to the table below.

    If... And... Then...
    Line 20a, 20b, 20c, and 20d are blank Only Box 2 is checked Take No Action
    Lines 21a, 21b, and 21c are blank Lines 6a, 6b, and 6c have entries Edit from Lines 6a-6c
    Lines 21a, 21b, and 21c are blank Lines 6a, 6b, and 6c are blank Correspond; prepare Letter 3653C CAS, mark Line 26.
    Line 22 is "Yes" Line 23 is blank and/or Form 3520-A, page 3 or similar statement (Foreign Trust Owner’s Statement) is missing Correspond; prepare Letter 3653C CAS, mark Line 17.
    Line 22 "No" Completed copy of Substitute Form 3520-A is missing Correspond; prepare Letter 3653C CAS, mark Line 17.
    Line 23 is blank The Gross Value of Trust on an attachment or Page 3 of Form 3520-A is missing Correspond; prepare Letter 3653C CAS, mark Line 17.

Checkbox 3, Part III - Required Lines

  1. The filer must complete Lines 25-53, in Part III. Correspondence may be necessary, refer to the table below. See IRM 3.21.19.31 (1) for additional information.

    Note:

    If the third checkbox is marked and all Lines 25-53 are blank, edit CCC "U" and correspond. Prepare Letter 3653C CAS and mark Line 27.

    If... And... Then...
    Line 25 "Yes" Lines 25a - 25g are blank Correspond; prepare Letter 3653C CAS, mark Line 18.
    Line 28 "Yes" Lines 28a - 28e are blank Correspond; prepare Letter 3653C CAS, mark Line 19.
    Line 29 "Yes" 3520-A, Page 4 is missing Correspond; prepare Letter 3653C CAS, mark Line 20.
    Line 29 or Line 30 "No" Lines 31-38 are blank Correspond; prepare Letter 3653C CAS, mark Line 21.
    Line 30 "Yes" Lines 31-38 AND Lines 39-47 are blank Correspond; prepare Letter 3653C CAS, mark Line 22.
    Line 49 contains an entry Form 4970, Tax on Accumulation Distribution of Trusts, is not attached Correspond; prepare Letter 3653C CAS, mark Line 28.

Checkbox 4, Part IV - Required Lines

  1. The filer must complete Lines 54-56, in Part IV. Correspondence may be necessary, refer to the table below.

    Note:

    If the fourth checkbox is marked and all Lines 54-56 are blank, edit CCC "U" and correspond. Prepare Letter 3653C CAS and mark Line 29.

    If... And... Then...
    Line 54 "Yes" Lines 54a-54c are blank Correspond; prepare Letter 3653C CAS, mark Line 23.
    Line 55 "Yes" Lines 55a-55g are blank Correspond; prepare Letter 3653C CAS, mark Line 24.
    Line 56 "Yes" an explanation including the foreign donor’s name, address, identification number (if any) and status as a corporation or partnership is not attached Take No Action.

♦Entity Perfection General♦ - Lines 1a through 1h

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

    1. Employer Identification Number (EIN)

    2. Name

    3. "In-care-of" name

    4. Address

  2. The entity area of the return identifies the taxpayer (the filer) on the Business Master File (BMF).

  3. Edit Lines 1a through 1h using the following procedures.

Name of Filer - Line 1a

  1. For filers other than individuals, the name control consists of the first four characters of the filer's (corporation, partnership, trust, etc.) name. Refer to the Name Control Job Aid for additional information: Document 7071 (IMF) or Document 7071A (BMF) for name control reference guide.

  2. Valid characters are:

    • Alpha (a-z),

    • Numeric (0-9),

    • The ampersand (&), and

    • The hyphen (-).

    • Blanks are valid only at the end of the name control.

  3. Do not include "THE" in the name control when "THE" is followed by more than one word.

  4. For individuals, the name control consists of the first four letters of the filer’s LAST name.

  5. Only Underline the name control on Line 1a. See Figure 3.21.19-3

    Figure 3.21.19-3

    This is an Image: 34014004.gif
     

    Please click here for the text description of the image.

Name Changes
  1. If the name has been changed so substantially as to indicate the probability of a new entity (e.g., individual to partnership, or partnership to corporation), but the TIN has not been changed:

    • Treat the return as unprocessable; and

    • Route the return to the Entity Section.

  2. If the name has not been changed so substantially as to indicate the probability of a new entity (such as a minor spelling change or changes to other than the first name line), follow local procedures

    1. If the change is minor to the first name line; underline the name control and edit TC 013 in the upper left margin of the return.

    2. If the change involves revision to or addition of an "in-care-of" name; edit TC 013 in the upper left margin of the return.

In-Care-of Name Line

  1. Verify that the "in-care-of" name is located above the street address.

  2. Arrow up the "in-care-of" name, if located below the address.

  3. A change to the "in-care-of" name can be determined by the following:

    Example:

    The taxpayer crossed out the original "in-care-of" name and added the new name or has entered a new "in-care-of" name in brackets

    If... Then...
    The "in-care-of" name is located on the street address line preceding the street address No editing is required.
    The "in-care-of" name is located below the street address line Arrow the "in-care-of" name above the street address.
    The "in-care-of" name is shown on an attachment Edit the "in-care-of" name above the street address beginning with the "%" or the "c/o" in the first position.
    An "in-care-of" name is changed but there is no indication of an address change, If the "%" is not present, then edit the "%" (percent sign) or "c/o" to the left of the "in-care-of" name in the first position followed by the appropriate name.
    An "in-care-of" name is present and an indication of an address change is shown,
    1. If the "%" is not present, then edit the "%" (percent sign) or "c/o" to the left of the "in-care-of" name in the first position followed by the appropriate name.

    2. Correct the address.

    There is no indication that the "in-care-of" name is changed, If the "%" is not present, then edit the "%" (percent sign) or "c/o" to the left of the "in-care-of" name (in the first position followed by the appropriate name).

♦Filer's Taxpayer Identifying Number (TIN) - Line 1b (Form 3520) or page 3 Line 6b (Form 3520-A)♦

  1. A nine-digit Taxpayer Identifying Number (TIN) must be included on Line 1b of Form 3520 and Form 3520-A, page 3 Line 6b submitted for processing.

    Note:


    Line 1b of Form 3520 can be an SSN, ITIN or EIN.
    Line 2b(1), Form 3520 (when required) must be an EIN.
    Line 6b, Page 3, Form 3520-A can be an SSN, ITIN, or EIN.
    Line 1b(1), Page 1, Form 3520-A must be an EIN.

  2. The TIN may be one of the following:

    • An Employer Identification Number (EIN) (entered in NN-NNNNNNN format),

    • A Social Security Number (SSN) (entered in NNN-NN-NNNN format), or,

    • In very rare circumstances, an Individual Taxpayer Identification Number (ITIN) (entered in 9NN-NN-NNNN format).

    Note:

    If nine digits, other than EIN, edit TIN Type as “0” when instructed.

  3. Circle out an invalid or illegible TIN and edit the correct number, if available, to the left of the filer's entry. Entry is considered invalid if:

    • Fewer than nine digits

    • Contains nine repeating digits (999-99-9999, 888-88-8888, etc.)

    • Contains any alpha characters.

    Caution:

    Line 1b Form 3520 Only -Route all "Initial returns" with an SSN or ITIN to BMF Entity Control so they can establish the Entity with a TC 000 on the BMF. If Line 1b (Form 3520) and/or Line 1b(1) (Form 3520-A) are blank or invalid, route to BMF Entity Control. See Figure 3.21.19-4.

    Note:

    Line 2b(1) (when required) of Form 3520 Only - If the TIN is an SSN or ITIN, then research IDRS for an EIN. If found, circle out the SSN or ITIN and edit the EIN on Line 2b(1). If none is found, enter CCC "N" to bypass the EIN requirement.

    Figure 3.21.19-4

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    Please click here for the text description of the image.

  4. Determine the TIN as follows for required TIN fields on Form 3520 and Form 3520-A:

    If... And... Then...
    TIN is missing You can determine the correct TIN from the attachments or schedules Edit the TIN above, below or to the left of the filer's entry.
    Multiple TINs are present  
    1. Circle out all but the first TIN.

    The TIN contains any of the following conditions and cannot be determined from attachments and/or schedules:
    • Illegible

    • Missing;

    • Other than nine digits;

    • All zeroes; or,

    • All nines

    The return is unnumbered
    1. If found on attachment, edit to the proper location.

    2. For Form 3520 Line 1b, send to Entity Control for research.

    3. For Form 3520-A page 3 Line 6b, send to Entity Control for research.

    The TIN contains any of the following conditions and cannot be determined from attachments and/or schedules:
    • Illegible

    • Missing

    • Other than nine digits

    • All zeroes or

    • All nines

    The return is numbered
    1. If found on attachment, edit to the proper location.

    2. For Form 3520 Line 1b, send to Entity Control for research.

    3. For Form 3520-A page 3 line 6b, send to Entity Control for research.

    "PENDING" , "APPLIED FOR" , etc., is indicated in the TIN area The return is unnumbered
    1. Edit CCC "N" to bypass the EIN requirement.

    "PENDING" , "APPLIED FOR" , etc., is indicated in the TIN area The return is numbered
    1. Edit CCC "N" .

  5. Be sure to edit the correct TIN Type indicator after each TIN. See IRM 3.21.19.21.4.

Filer's Taxpayer Identification Number (TIN) Type - Line 1b

  1. The filer's TIN type must be edited if the filer's TIN is an SSN or ITIN.

    Note:

    These instructions are for use on all TIN line fields transcribed on Form 3520 pages 1-6 and Form 3520-A pages 1-4.

  2. Valid characters are "0" (zero) and "blank" .

    If... Then...
    The TIN entered on Line 1b is an EIN (NN-NNNNNNN) or unformatted No editing is required.
    If nine digits are in SSN or ITIN format (NNN-NN-NNNN) Edit a 0 (zero) to the right of the TIN entered by the filer. See Figure 3.21.19-5

    Figure 3.21.19-5

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Street Address - Line 1c

  1. The street address must be present. The street address can be found on Line 1c.

  2. Perfection of the address is necessary when the mailing address (Street or P.O. Box) is not easily identified.

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

  4. Both domestic (U.S.) and foreign addresses should include:

    • The street number.

    • The street name.

    • Any appropriate room or suite designation (e.g., "Suite 2000" ).

    • The City, State, and ZIP Code (for domestic addresses).

    • The foreign city, postal code and country (for foreign addresses).

    Note:

    If a domestic address is followed by a foreign country, circle out the foreign country and do not edit a foreign country code.

  5. If two addresses are shown, underline the mailing address (second street address).

  6. If both a P.O. Box and a street address are shown, underline the P.O. Box, City, State, and ZIP Code. Edit TC 014.

    Note:

    This paragraph only applies to domestic forms as State or ZIP will not be on foreign documents.

  7. If necessary, abbreviate the street address.

  8. When editing either the mailing or location address information, remember the following guidelines:

    • Ensure that a house or building number is present. Do not accept a building name in place of the numeric designation. Research for the correct address.

    • Always input the suite, apartment number, room number, etc., at the end of the street address line.

    • Always input the street suffix, such as street, drive, lane, terrace, etc., if present. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, for appropriate abbreviations.

    • Always include the directional information, such as North, South, East, West, etc., if present.

    • If no street address or PO Box is provided by the taxpayer, research IDRS before editing the word "Local" on the street address line.

      Note:

      This should only occur in very small towns.

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

    ZIP Code Address Country APO/DPO/FPO Address
    34000-34049 APO Americas APO AA [ZIP Code]
    34050-34099 FPO Americas FPO AA [ZIP Code]
    340XX-340XX DPO Americas DPO AA [ZIP Code]
    090XX-094XX
    096XX-098XX
    APO Europe APO AE [ZIP Code]
    095XX FPO Europe FPO AE [ZIP Code]
    090XX-098XX DPO Europe DPO AE [ZIP Code]
    962XX-965XX
    98700-98759
    APO Pacific APO AP [ZIP Code]
    966XX and
    98760-98799
    FPO Pacific FPO AP [ZIP Code]
    962XX-966XX DPO Pacific DPO AP [ZIP Code]
U.S. Possessions
  1. Edit U.S. Possessions addresses in the same manner as domestic addresses. Returns with address changes in the following U.S. Possessions can be input with the return:

    • American Samoa

    • Federated States of Micronesia

    • Guam

    • Marshall Islands

    • Northern Mariana Islands

    • Palau Islands

    • Puerto Rico

    • U.S. Virgin Islands

  2. Returns with addresses in U.S. Possessions are considered to be a foreign address for processing purposes but are edited in the same way as domestic addresses.

    1. A two-character alpha state code must be edited on Form 3520, Line 1f for the possession name. See the table below.

    2. A ZIP Code must be present. Edit the appropriate ZIP Code if one is not provided. See Document 7475 and Exhibit 3.21.19-2.

  3. Editing a U.S. Possession country code on a non-mailing address line is required on Form 3520 or Form 3520-A. This does not include Line 1h, Page 1 of Form 3520 or Line 1g, Page 1 of Form 3520-A. For example, edit a U.S. Possession country code on lines 2g or 3g of Form 3520, Page 1, or any other transcribed country lines on pages 2 to 6 (e.g., line 6a, 6b, 21a, 21b, etc.) on Form 3520. Use the table below to select the correct U.S. Possession country code.

    Note:

    U.S. Possession country codes must be edited in the same format as other country codes, (//$).

    U.S. Possession State Code Country Code
    American Samoa AS AQ
    Federated States of Micronesia FM FM
    Guam GU GQ
    Marshall Islands MH RM
    Northern Mariana Islands MP CQ
    Palau Islands PW PS
    Puerto Rico PR RQ
    Virgin Islands (U.S.) VI VQ
Editing TC 014 - Address Changes
  1. Edit TC 014 in the upper left margin of the return to indicate an address change request.

  2. Do not perfect the address unless the street address is not easily identified for returns that require no other perfection.

  3. Perfect and input the address (via IDRS) in the following instances:

    If... Then...
    both a P.O. Box and a street address are shown: underline the P.O. Box, City, State, and ZIP Code, and edit TC 014 in the upper left margin of the form.
    two street addresses are shown underline the second street address, City, State, and ZIP Code, and edit TC 014 in the upper left margin of the form.
    the street address has been crossed out by the filer and a P.O. Box added edit TC 014 in the upper left margin; and route to Entity for input of a TC 014 per local Campus procedures.
  4. Always circle out the "in-care-of" (%) symbol if it is shown with an address.

    Figure 3.21.19-6

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    Please click here for the text description of the image.

  5. If the filer clearly states on an attachment that the address has been changed, edit out the old address, and enter the new address in the entity portion of the return.

  6. If the ZIP Code is missing,

    • Check the attachments, and perfect in the appropriate area.

    • If not found on attachments, follow local Campus procedures.

  7. If abbreviating the street address, see Document 7475 for correct abbreviation.

♦General Information and Perfection of Foreign Address♦

  1. A foreign (international) address is any address that is not in the 50 states, the District of Columbia or any of the U.S. Possessions. See IRM 3.21.19.21.5.2, U.S. Possessions.

  2. Returns with Army Post Office (APO)/ Diplomatic Post Office (DPO)/Fleet Post Office (FPO) addresses are considered domestic addresses. See IRM 3.21.19.21.5.1, APO/DPO/FPO Address.

  3. Route returns with a foreign address to Ogden Submission Processing Center (OSPC) for processing. Prepare Letter 86C to inform the taxpayer that the return has been sent to OSPC.

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

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

    2. Circle out the foreign country and edit the two-letter country code preceded by a "/" and followed by "/$" as the last entry in the address.

      Note:

      Submission Processing BMF Foreign Address Job Aid (Number 2324-002) provides examples for editing foreign addresses.

    3. If the foreign address is from Australia, Brazil, Canada, Cuba, Italy, Mexico or The Netherlands, check if the address contains a province, state or territory name. See IRM 3.21.19.21.6.1, Foreign Address - Canada Only, for procedures for editing the country code for returns with a Canadian address.

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

      2. Edit the appropriate abbreviation. Exhibit 3.21.19-6, Province, State and Territory Abbreviations

      A province, state or territory name is not present Continue editing the return.
      Province, state or territory is shown in abbreviated format, Continue editing the return.
    4. A ZIP code is not required on a foreign address. Foreign addresses use a postal code that is entered before the foreign country and is part of the address.

♦Foreign Address – Canada Only♦
  1. In an effort to assist Compliance with workload assignment, returns filed with an address in Canada will be edited using a unique country code based on the province. Use the country codes in Figure 3.21.19-7 to edit a Canadian address on Form 3520 Line 1h only, and Form 3520-A, Line 1g only. All other address lines, edit /"CA" /$ for Canada. See Figure 3.21.19-8b for an example of editing Canadian addresses.

    If... Then...
    The foreign address contains a Canadian province/territory name or abbreviation shown in the table below,
    1. See the table in Figure 3.21.19-7 below to ensure the correct Canadian Province/Territory abbreviation is present or edited to the return.

    2. Circle the country name.

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

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

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

    Figure 3.21.19-7

    Canadian Province Province Code Country Code Postal Codes begin with
    Alberta AB XA T
    British Columbia BC XB V
    Manitoba MB XM R
    New Brunswick NB XN E
    Newfoundland and Labrador NL XL A
    Northwest Territories NT XT X
    Nova Scotia NS XS B
    Nunavut NU XV X
    Ontario ON XO K, L, M, N, P
    Prince Edward Island PE XP C
    Quebec QC XQ G, H, J
    Saskatchewan SK XW S
    Yukon YT XY Y
  2. The rest of the foreign address is edited using procedures in IRM 3.21.19.21.6.

Address Changes - Foreign Address
  1. A foreign address is any address that is not in:

    • One of the 50 states,

    • The District of Columbia, or

    • Any of the U.S. Possessions.

  2. When a foreign address change is indicated, edit TC 014 in the upper right margin of the return. Edit the changed information, plus any unchanged information to make a complete address.

  3. When a foreign address includes a postal (foreign zip) code, edit in accordance with Document 2324-002 Job Aid. See Figure 3.21.19-8a.

    Figure 3.21.19-8a

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    Figure 3.21.19-8b

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  4. When a foreign address is present, a Country Code must be edited on Line 1h using the Country Name entered on Line 1h. See Section 5 of Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

  5. Disregard the above instructions to input a TC 014 if the TIN has not been changed, but the name has been changed so substantially as to indicate the probability of a new entity.

    1. A minor spelling change is not "substantial."

    2. If in doubt, consider the change to be substantial.

    3. Treat such returns as unprocessable, and route the return to Entity Control Unit.

"Yes - No" Checkboxes
  1. These are one-position fields.

  2. No editing required.

Spouse's TIN - Line 1d

  1. The spouse’s TIN may or may not be present.

  2. An entry will generally be present in this field if the filer files a joint return with the spouse. However, if Line 1d is blank, do not route to entity or correspond for the TIN.

  3. Circle out the spouse’s TIN if it is incomplete, illegible or invalid.

Spouse's TIN Type - Line 1d

  1. The TIN Type must be edited if the Spouse's TIN entered on Line 1d is an SSN (or an ITIN).

  2. If an SSN (or an ITIN) is present in line 1d, edit "0" as the TIN Type immediately to the right of the spouse’s Social Security Number (SSN) entered in box 1d.

City - Line 1e

  1. The city must be present for both domestic and foreign addresses.

  2. The valid characters are, alpha (a-z), blank.

    Note:

    Numbers are not valid, only alpha letters.

  3. Research the ZIP Code directory to determine the city and/or state if:

    • The address is a U.S. address.

    • The city and/or state is missing or incomplete.

    • The ZIP Code is present.

  4. If the city and/or state cannot be determined from the ZIP Code or other available information (e.g., envelope, if attached), edit the filer's address to the Foreign Trust address lines (Form 3520 only).

  5. If the city listed is a major U.S. city, it must be followed by the ZIP Code.

  6. If the address is a foreign address which includes a Province designation,

    • Circle out the name of the province.

    • Edit the province abbreviation

    • A province abbreviation must be present for Canadian addresses. See Figure 3.21.19-7

State or Province- Line 1f

  1. A state must be present for all U.S. addresses.

  2. Valid characters are alpha (a-z) for Form 3520 and Form 3520-A.

  3. If the State name is spelled out, do not edit the two-letter state code.

  4. When the State is missing or illegible, research attachments and/or ZIP Code directory.

    Note:

    See Document 7475.

ZIP Code - Line 1g

  1. The ZIP Code must be present for addresses in the U.S., APO/DPO/FPO and U.S. Possessions.

  2. Only numeric characters (0-9) and blank are valid.

  3. The U.S. ZIP Code must contain at least five (5) and may contain up to twelve (12) characters.

  4. If the address is a U.S. address and the ZIP Code is missing or incomplete,

    • Research the ZIP Code Directory.

    • Edit the correct ZIP Code.

  5. If the address is located in a major city and the ZIP Code is missing or incorrect, perfect the ZIP Code from the ZIP Code chart. See Document 7475.

  6. If the address is a foreign address, edit in accordance to the Foreign Address Job Aid (2324–002).

  7. U. S. and Australian addresses must include Numeric Postal Codes. See Figure 3.21.19-9

    Figure 3.21.19-9

    State/Territory Postal Codes
    New South Wales and A.C.T. 2000–2999
    Victoria 3000–3999
    Queensland 4000–4999
    South Australia 5000–5799
    Western Australia 6000–6799
    Tasmania 7000–7499
    Northern Territory 0800–0899

Country Code - Line 1h

  1. The country must be edited using the applicable foreign country code. See Document 7475, Section 5.

    Caution:

    Do not use the country code for Canada if a province/territory name or abbreviation is shown. Instead use the country code associated with the province/territory code. See IRM 3.21.19.21.6.1 and Figure 3.21.19-7.

  2. If the country code is edited as part of a foreign address, edit the country code preceded by a "/" and followed by "/$" .

  3. Do not edit a country code for a U.S. Possession (e.g., Guam, American Samoa, Puerto Rico, etc.) on Line 1h, Page 1, Form 3520 page 1 Line 1h or Form 3520-A, page 1, Line 1g. If a U.S. Possession is present, circle it out, and edit the appropriate state code. See IRM 3.21.19.21.5.2.

    Caution:

    The United States is not a country for purposes of Form 3520, Line 1h, or Form 3520-A Line 1g, "Country Code" . Always circle out any references to the United States.

  4. Valid characters are alpha (a-z) only.

Check box for Married Filing Jointly- Line 1i.

  1. This is a one-position field.

  2. No editing required.

Campus Where Filer's Return is Filed - Line 1j

  1. Line 1j identifies the Service Center where U.S. person's tax return is filed.

  2. Valid characters are alpha (a-z) only.

  3. Edit the code for the Campus named by the filer to the dotted portion of line 1j. Accept the filer’s entry and edit the code only if it is one of the campuses listed below.

  4. If blank or invalid, edit the campus code related to the taxpayer’s resident state shown on Form 3520 Line 1f, or Form 3520-A page 3 Line 6e, using the chart in Figure 3.21.19-10b. If unable to determine the taxpayer’s resident state, then edit "AUSC" if the filer on Line 1a (Form 3520) or Line 6a (Form 3520-A Page 3) is an individual, or edit "OSC" if the filer is a business entity.

    Reminder:

    An invalid entry is an entry which does not contain the name of one of the campuses listed in Figure 3.21.19-10a.

    Figure 3.21.19-10a

    Acronym Submission Processing Campus Code and Campus Name
    ANSC Andover Submission Processing Campus
    ATSC Atlanta Submission Processing Campus
    AUSC Austin Submission Processing Campus
    CSC Cincinnati Submission Processing Campus
    FSC Fresno Submission Processing Campus
    KCSC Kansas City Submission Processing Campus
    OSC Ogden Submission Processing Campus (Effective January 2007, became the Campus for processing all BMF International returns)

    Figure 3.21.19-10b

    If taxpayer address is... Then edit the appropriate Campus Code
    Individual: Alaska, Arizona, Arkansas, California, Colorado, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Utah, Washington, Wisconsin, Wyoming. FSC
    Individual: Florida, Louisiana, Mississippi, Texas, any foreign country, U.S. possession or territory, or APO or FPO address, AUSC
    Individual: Alabama, Delaware, Georgia, Kentucky, Maine, Massachusetts, Missouri, New Hampshire, New Jersey, New York, North Carolina, South Carolina, Tennessee, Vermont, Virginia KCSC
    Individual: Connecticut, District of Columbia, Maryland, Pennsylvania, Rhode Island, West Virginia OSC
    Business: Any domestic or foreign address for other than Individual filer (corporation, partnership, trust), OSC

Extension Filed - Line 1k Checkbox and Tax Form Filed

  1. Tax Form Filed: The form number of the tax return to be filed with an extension request along with the Form 3520.

  2. If an extension was requested for the tax return, (form number entered on the line) and the box is not checked, check the box.

  3. If the form number entered on the line is “1040” edit CCC “5” on all 2015 and later returns. DO NOT edit on 2014 and prior returns. See Figure 3.21.19-11.

    Figure 3.21.19-11

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Foreign Trust - Lines 2a through 2g

  1. Lines 2a through 2g identify the entity information of the foreign trust.

  2. Lines 2a through 2g must be completed if Box 2 is checked. If missing, edit CCC "U" and correspond. Prepare Letter 3653C CAS, mark Line 7.

  3. Edit Lines 2a through 2g using the following procedures.

Name of Foreign Trust - Line 2a

  1. The Name of the Foreign Trust must be present if box 2 is checked showing that the filer is an owner of a foreign trust.

  2. Editing of the foreign trust name is not required unless the name on Line 2a is illegible.

    1. Check attachments and supporting schedules for a clearer, more legible entry.

    2. Edit the name immediately above the filer's entry.

Foreign Trust EIN - Line 2b(1)

  1. The Foreign Trust EIN must be present if box 2 is checked showing that the filer is the owner of a foreign trust.

  2. The Identification Number of the Trust must be an EIN

    Note:

    Line 2b(1) (when required (box 2 is checked)) of Form 3520 Only - If the TIN is an SSN or ITIN, then route to Entity Control for IDRS research for an EIN (or follow local procedures). If found, circle out the SSN or ITIN and edit the EIN on Line 2b(1). If none is found, edit CCC "N" to bypass the EIN requirement.

  3. Edit CCC "N" to bypass the EIN when the EIN is missing, incomplete, contains all 9’s or zeros. It is not necessary to research IDRS prior to editing the CCC "N" , except as noted above.

Foreign Trust TIN Type - Line 2b(1)

  1. See IRM 3.21.19.21.4.

Foreign Trust Street Address - Line 2c

  1. The Trust Street Address must be present if box 2 is checked showing that the filer is the owner of a foreign trust.

  2. See IRM 3.21.19.21.5 (paragraphs 1 thru 4) for editing procedures.

    Note:

    If the Trust address is missing, and page 3 of Form 3520-A is attached showing the Foreign trust address or it is present in another line on, Form 3520 then edit the Foreign trust address over to line 2c thru 2g.

Foreign Trust City Name - Line 2d

  1. The Trust City Name must be present if box 2 is checked showing that the filer is the owner of a foreign trust.

  2. See IRM 3.21.19.21.9 for editing procedures.

Foreign Trust State or Province- Line 2e

  1. The Trust State Name must be present if box 2 is checked showing that the filer is the owner of a foreign trust.

  2. If the State name is spelled out, do not edit the two-letter state code (ISRP will enter the two-letter state code). If the Province is spelled out, continue to edit the province code.

  3. See IRM 3.21.19.21.10 for editing procedures.

Foreign Trust ZIP Code - Line 2f

  1. The Trust ZIP Code must be present if box 2 is checked showing that the filer is the owner of a foreign trust.

  2. See IRM 3.21.19.21.11 for editing procedures.

Foreign Trust Country Code - Line 2g

  1. The Foreign Trust Country Code must be present if box 2 is checked showing that the filer is the owner of a foreign trust.

  2. The country must be edited using the appropriate country code. See Document 7475, Section 5.

    Note:

    The United States is not a country for purposes of Country Code. Always circle out any references to the United States.

  3. Valid characters are alpha (AZ) only.

U.S. Agent of Foreign Trust - Lines 3a through 3g

  1. Taxpayer’s response on Line 3 will indicate if the foreign trust appointed a U.S. Agent to discuss trust information with the IRS.

  2. Lines 3a through 3g identify the entity information for the U.S. agent of the foreign trust.

  3. If Line 3 is checked "Yes" , Lines 3a through 3g must be completed. If missing, edit CCC U, and correspond. Prepare Letter 3653C CAS, mark Line 9.

  4. If Line 3 is checked "No," and the filer checked the first filer checkbox on Form 3520, page 1, then they must complete the relevant line of Lines 15-18, in Part I. If missing, edit CCC U and correspond. Prepare Letter 3653C CAS, mark Line 10.

RESERVED

  1. RESERVED.

U.S. Agent Name - Line 3a

  1. See IRM 3.21.19.22.1 for editing procedures.

U.S. Agent TIN - Line 3b

  1. See IRM 3.21.19.21.3 (4)"If/Then" chart for editing procedures.

    Note:

    If line 3b is blank, NA, or none, and there is an entry on the corresponding name line,≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

U.S. Agent TIN Type - Line 3b

  1. See IRM 3.21.19.21.4 for editing procedures.

U.S. Agent Street Address - Line 3c

  1. The U.S. Agent Street Address must be present if the response to Line 3 is "Yes" .

  2. See IRM 3.21.19.21.5 for editing procedures.

U.S. Agent City - Line 3d

  1. The U.S. Agent City must be present if the response to Line 3 is "Yes" .

  2. See IRM 3.21.19.21.9 for editing procedures.

U.S. Agent State or Province- Line 3e

  1. The U.S. Agent State must be present if the response to Line 3 is "Yes" .

  2. If the State name is spelled out, do not edit the two-letter state code.

  3. See IRM 3.21.19.21.10 for editing procedures.

U.S. Agent ZIP Code - Line 3f

  1. The U.S. Agent ZIP must be present if the response to Line 3 is "Yes" .

  2. See IRM 3.21.19.21.11 for editing procedures.

U.S. Agent Country Code - Line 3g

  1. See IRM 3.21.19.22.8 for editing procedures.

U.S. Decedent - Lines 4a through 4f

  1. Lines 4a through 4f provide the entity information for a U.S. decedent.

  2. If the Executor checkbox (Page 1 Line B) is checked, lines 4a - 4f must be completed. If missing, edit CCC U and correspond. Prepare Letter 3653C CAS, mark Line 2.

U.S. Decedent Name - Line 4a

  1. See IRM 3.21.19.22.1 for editing procedures.

U.S. Decedent Address - Line 4b

  1. See IRM 3.21.19.21.5, through IRM 3.21.19.21.11 for editing procedures.

U.S. Decedent TIN - Line 4c

  1. See IRM 3.21.19.21.3 for editing procedures.

U.S. Decedent Identification Number and TIN Type- Line 4c

  1. See IRM 3.21.19.21.3 and IRM 3.21.19.21.4 for editing procedures.

U.S. Decedent Date of Death- Line 4d

  1. Edit the date of death in MMDDYYYY format.

U.S. Decedent Estate TIN - Line 4e

  1. See IRM 3.21.19.21.3 for editing procedures.

U.S. Decedent Estate TIN Type - Line 4e

  1. See IRM 3.21.19.21.4 for editing procedures.

U.S. Decedent Transfer Checkbox - Line 4f

  1. If any of the boxes on Line 4f are checked, then there must be entries in Lines 4a through 4e.

  2. If entries on Lines 4a through 4e are missing, edit CCC U and correspond. Prepare Letter 3653C CAS, mark Line 4.

Form 3520, Page 2, Part I - Transfers by U.S. Persons to a Foreign Trust

  1. Part 1, Page 2 of Form 3520must be completed if the first checkbox (under Question B) is checked.

  2. If Part 1 has not been completed, edit CCC U and correspond. Prepare Letter 3653C CAS, mark Line 25.

Name of Trust Creator - Line 5a

  1. See IRM 3.21.19.21.1 for editing procedures.

    Note:

    If the taxpayer writes "SAME" or leaves Line 5a blank, edit the name from Line 1a to Line 5a, edit from attachments if taxpayer indicates information is on an attachment.

  2. If Lines 5a through 5c and/or Lines 6a through 6c are incomplete and cannot be edited as directed in (1) above, edit CCC "U" and correspond. Prepare Letter 3653C CAS, mark Line 11.

Address of Trust Creator - Line 5b

  1. Line 5b must be completed. See IRM 3.21.19.20.1.

  2. See IRM 3.21.19.21.5 through IRM 3.21.19.21.11 for editing procedures.

  3. Edit the trust address from Lines 1c, 1e, 1f and 1g to Line 5b.

Trust Creator TIN - Line 5c

  1. See IRM 3.21.19.21.3 (4)"If/Then" chart for editing procedures.

    Note:

    If the TIN is missing or is not an SSN or ITIN, do not perfect or edit.

Trust Creator TIN Type- Line 5c

  1. See IRM 3.21.19.21.4 for editing procedures.

Trust Creator Country Code - Line 6a

  1. The country must be edited using the applicable foreign country code. See Document 7475, Section 5. See IRM 3.21.19.20.1.

  2. Never edit U.S. on a country code line.

    Note:

    The United States is not a country for purposes of Country Code. Always circle out any references to the United States.

  3. The country code must be alpha only.

  4. Edit the country code to the right of the country name or code.

  5. If the country is missing, edit the country code from Line 21a if present.

Law Governs Trust Country Code - Line 6b

  1. See IRM 3.21.19.21.12 for editing procedures. Also see IRM 3.21.19.20.1.

Date Trust Created - Line 6c

  1. Edit the date the trust was created in MMDDYYYY format.

    Note:

    If the taxpayer does not write a complete date, then perfect the date. If it reads Nov. or Nov. 2017, edit 11012017. If blank or unknown, edit the first day and month of the return tax period (e.g., 01012017).

Line 7a Checkbox

  1. If Line 7a is marked "Yes" , Line 7b (i-v) must be completed.

  2. If Line 7b is incomplete, edit CCC "U" and correspond. Prepare Letter 3653C CAS, mark Line 12.

Other Owners Name - Line 7b, Column (i)

  1. An entry must be present if the "Yes" checkbox is checked on Line 7a. If Line 7b is incomplete, edit CCC U and correspond. Prepare Letter 3653C CAS, mark line 12.

  2. See IRM 3.21.19.22.1 for editing procedures.

    Note:

    Edit the first entry only. If the taxpayer has one entry and it appears on the second or third line, edit a line number (e.g., L1) to the left of the filer’s information. If the information appears on an attachment, edit the first entry on the attachment to the first line.

Other Owners Address- Line 7b, Column (ii)

  1. An entry must be present if the "Yes" checkbox is checked on Line 7a.

  2. Edit the first entry only. If the taxpayer has one entry and it appears on the second or third line, edit a line number (e.g., L1) to the left of the filer’s information.

  3. See IRM 3.21.19.21.5 through IRM 3.21.19.21.11 for editing procedures.

  4. If the State name is spelled out, do not edit the two-letter state code.

Other Owners Country of Residence - Line 7b, Column (iii)

  1. An entry must be present if the "Yes" checkbox is checked on Line 7a.

  2. See IRM 3.21.19.21.12 for editing procedures.

  3. Edit the country code to the right of the country name.

  4. Edit the first entry only.

Other Owners TIN - Line 7b, Column (iv)

  1. An entry must be present if the "Yes" checkbox is checked on Line 7a.

  2. See IRM 3.21.19.21.3 (4)"If/Then" chart for editing procedures.

    Note:

    If the TIN is missing or is not an SSN or ITIN, do not perfect or edit.

Other Owners TIN Type- Line 7b, Column (iv)

  1. See IRM 3.21.19.21.4 for editing procedures.

  2. Edit the first entry only.

Other Owners Relevant Code Section - Line 7b, Column (v)

  1. An entry may be present on Line 7b, column (v) if the "Yes" box is checked on Line 7a, but it is not required.

Multiple Other Owners Indicator- Line 7b, Column (i) through (v)

  1. Edit a "1" in the right margin by the last T-Line in Line 7b, column (v) if there is more than one Other Owner entry present on Line 7b. See Figure 3.21.19-12.

  2. No editing is required if no entry or only one entry.

    Figure 3.21.19-12

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    Please click here for the text description of the image.

Form 3520, Page 2, Schedules A and B

  1. Completion of Schedules A and B is dependent upon the taxpayer responses to Question 11a and 11b. See IRM 3.21.19.20.1 for additional information.

  2. Use the following instruction when editing information entered on Schedules A and B of Part I, Form 3520 when the filer checks the first checkbox on page 1.

Schedule A - Obligation of a Related Trust

  1. Edit Lines 11a through 12 using the following procedures.

Transfer in Exchange for Obligation - Line 11a

  1. If the "Yes" box on Line 11a is checked then the filer must complete the applicable lines on Schedule A. See IRM 3.21.19.20.1 and IRM 3.21.19.21.6.3 If Line 11 (i)-(iv) have not been completed, edit CCC U and correspond. Prepare Letter 3653C CAS, mark Line 14.

  2. If the "No" box on Line 11a is checked, then the filer can skip the rest of Schedule A and proceed to Schedule B. See IRM 3.21.19.20.1, IRM 3.21.19.28 and IRM 3.21.19.21.6.3

  3. If both checkboxes are checked and both Schedule A and Schedule B are completed, circle out the "No" checkbox and "X" out Schedule B.

  4. If both checkboxes are checked but only one Schedule (A or B) is completed, circle out the corresponding checkbox associated with the blank schedule.

Transfer of Qualified Obligations- Line 11b

  1. If the "Yes" box on Line 11b is checked, the filer must complete the applicable lines on Schedule A. See IRM 3.21.19.20.1 and IRM 3.21.19.21.6.3

  2. If the "No" box on Line 11b is checked, the filer should skip Schedule A and proceed to Schedule B, of Part I, Form 3520 to complete line 13 columns a thru i.

  3. If Line 11b box is marked "Yes" and Line 11(i)-(iv) have not been completed, edit CCC "U" and correspond. Prepare Letter 3653C CAS, mark Line 14.

Date of Transfer - Line 11b, Column (i)

  1. An entry may be present if the response to Line 11a or 11b is "Yes" .

  2. If present, edit the date of transfer in MMDDYYYY format.

    Note:

    If the taxpayer does not write a complete date, then perfect the date. If it reads Nov. or Nov. 2017, edit 11012017. If blank, unknown, or a future date (e.g., 03/03/2018), edit the first day and month of the return tax period (e.g., 01012017).

  3. Edit the first three entries only.

    Note:

    If the information appears on an attachment, edit the first three entries on the attachment to the first three lines.

Maximum Term - Line 11b, Column (ii)

  1. Term is defined as number of years and/or months

Yield to Maturity - Line 11b, Column (iii)

  1. The Yield to Maturity is numeric (0-9).

Fair Market Value (FMV) of Obligation - Line 11b, Column (iv)

  1. The FMV of Obligation is numeric (0-9).

Multiple Transfers Indicator - Line 11b, Columns (i) through (iv)

  1. If more than three entries are reported in columns (i) through (iv) or on an attachment, edit a "1" in the margin to the right of the third entry.

  2. No editing is required if there are three or fewer entries.

Schedule B - Gratuitous Transfers

  1. Edit Lines 13 through 18f using the following procedures.

    Note:

    If the information appears on an attachment, edit the first two entries on the attachment to the first two lines.

Date of Transfer - Line 13, Column (a)

  1. An entry is required to be present if the response to Line 13 is "Yes" .

  2. Only the first two lines of data and totals from column (f) and (i) will be edited.

    Note:

    If the taxpayer does not write a complete date, then perfect the date. If it reads Nov. or Nov. 2017, edit 11012017. If blank or unknown, edit the first day and month of the return tax period (e.g., 01012017).

  3. Edit the date of transfer in "MMDDYYYY" format.

    Note:

    If the taxpayer’s entry appears on a line other than line 1 and 2, edit a line number (e.g., L1, L2) to the left of the filer’s information, or edit the entries to the 1st and 2nd lines.

  4. If Line 13 box is marked "Yes" and Line 13 (a)-(i) have not been completed, edit CCC "U" and correspond. Prepare Letter 3653C CAS, mark Line 15.

FMV of Property Transferred - Line 13, Column (c)

  1. The FMV of Property Transferred is numeric (0-9).

U.S. Basis of Property Transferred - Line 13, Column (d)

  1. The U.S. Basis of Property Transferred is numeric (0-9).

Gain Recognized at Time of Transfer - Line 13, Column (e)

  1. The Gain Recognized at Time of Transfer is numeric (0-9).

Excess Gain Recognized - Line 13, Column (f)

  1. The Excess Gain Recognized is numeric (0-9).

Total Excess Gain Recognized - Line 13, Column (f) Total

  1. Compute the "Total" for column (f), by combining the entries present in Column (f).

  2. Enter the combined amount in column (f), "Total" .

    Note:

    If the information appears on an attachment, edit the combined "Totals" amount from the attachment to Line 13 Column (f) "Totals" line.

FMV of Property Received - Line 13, Column (h)

  1. The FMV of Property Received is numeric (0-9).

Excess FMV Transfers Over Receipts - Line 13, Column (i)

  1. The FMV of Transfers Over Receipts is numeric (0-9).

Total Excess FMV Transfers Over Receipts - Line 13, Column (i)

  1. Compute the "Total" for column (i), by combining the entries present in Column (i).

  2. Enter the combined amount in column (i), "Total" .

    Note:

    If the information appears on an attachment, edit the combined "Totals" amount from the attachment to Line 13 Column (i) "Totals" line.

Multiple Gratuitous Transfers Indicator - Line 13, Columns (a) through (i)

  1. If more than two entries are reported in columns (a) through (i) or on an attachment, edit a "1" in the margin to the right of the second entry.

  2. No editing is required for two or less entries.

Year Sales Document Attached - Line 14a

  1. If the filer checked the "Attached Previously" checkbox, then the year the document was previously submitted must be completed.

  2. Edit the year in "YYYY" format.

Year Loan Document Attached - Line 14b

  1. If the filer checked the "Attached Previously" checkbox, then the year the document was previously submitted must be completed.

  2. Edit the year in "YYYY" format.

Year Variance to Original Document(s) Attached - Line 14c

  1. If the filer checked the "Attached Previously" checkbox, then the year the document was previously submitted must be completed.

  2. Edit the year in "YYYY" format.

Schedule B - Gratuitous Transfers

  1. Schedule B, Lines 15(a) through 18f, is completed if the filer responded "No" to the U.S. Agent of Foreign Trust checkbox on Line 3. See IRM 3.21.19.20.1.

  2. Edit Lines 15(a) through 18f using the following procedures.

  3. Edit the first three entries only. Do not correspond for missing information if Line 3 is "Yes."

    Note:

    If the information appears on an attachment, edit the first three entries on the attachment to the first three lines.

  4. If Line 3 checkbox is marked "No" and Lines 15(a)-18(f) have not been completed, edit CCC "U" and correspond. Prepare Letter 3653C CAS, mark Line 10.

Name of Beneficiary - Line 15, Column (a)

  1. See IRM 3.21.19.21.1 for editing procedures.

    Note:

    If the taxpayer’s entry appears on a line other than line 1, 2 and 3, edit a line number (e.g., L1, L2, L3) to the left of the filer’s information to the 1st, 2nd and 3rd lines.

    Exception:

    Do not edit the name control.

Address of Beneficiary - Line 15, Column (b)

  1. See IRM 3.21.19.21.5 through IRM 3.21.19.21.11 for editing procedures.

  2. Edit a country code, if present. See IRM 3.21.19.21.12.

  3. If the State name is spelled out, do not edit the two-letter state code. ISRP will enter the two-letter state code.

  4. Edit the first three entries only.

Beneficiary TIN - Line 15, Column (d)

  1. See IRM 3.21.19.21.3 (4)"If/Then" chart for editing procedures.

    Note:

    If the TIN is missing or is not an SSN or ITIN, do not perfect or edit.

Beneficiary TIN Type - Line 15, Column (d)

  1. See IRM 3.21.19.21.4 for editing procedures.

  2. Edit the first three SSN/ITIN entries, if present.

Multiple Beneficiary Indicator - Line 15, Columns (a) through (d)

  1. If more than three entries are reported in columns (a) through (d) or on an attachment, edit a "1" in the margin to the right of the third entry.

  2. No editing is required if there are three or fewer entries.

Name of Trustee - Line 16, Column (a)

  1. See IRM 3.21.19.21.1 for editing procedures.

    Note:

    If the taxpayer’s entry appears on a line other than line 1, edit a line number (e.g., L1) to the left of the filer’s information.

    Exception:

    Do not edit the name control.

Address of Trustee - Line 16, Column (b)

  1. See IRM 3.21.19.21.5 and IRM 3.21.19.21.6 through IRM 3.21.19.21.11 for editing procedures.

  2. Edit a country code, if present. See IRM 3.21.19.21.12.

  3. If the State name is spelled out, do not edit the two-letter state code.

  4. Edit the first entry only.

Trustee TIN - Line 16, Column (c)

  1. See IRM 3.21.19.21.3 (4)"If/Then" chart for editing procedures.

    Note:

    If the TIN is missing or is not an SSN or ITIN, do not perfect or edit.

Trustee TIN Type - Line 16, Column (c)

  1. See IRM 3.21.19.21.4 for editing procedures.

  2. Edit the first SSN/ITIN entered, if present.

Multiple Trustee Indicator - Line 16, Columns (a) through (c)

  1. If more than one entry is reported in columns (a) through (c) or on an attachment, edit a "1" in the margin to the right of the first entry.

  2. No editing is required if there is no entry or just one entry.

Name of Other Persons With Trust Powers - Line 17, Column (a)

  1. See IRM 3.21.19.21.1 for editing procedures.

    Note:

    If the taxpayer’s entry appears on a line other than line 1, edit a line number (e.g., L1) to the left of the filer’s information.

    Exception:

    Do not edit the name control.

Address of Other Persons With Trust Powers - Line 17, Column (b)

  1. See IRM 3.21.19.21.5 and IRM 3.21.19.21.6 through IRM 3.21.19.21.11 for editing procedures.

  2. Edit a country code, if present. See IRM 3.21.19.21.12.

  3. Edit the first entry only.

Other Persons With Trust Powers TIN - Line 17, Column (d)

  1. See IRM 3.21.19.21.3 (4)"If/Then" chart for editing procedures.

    Note:

    If the TIN is missing or is not an SSN or ITIN, do not perfect or edit.

Other Persons With Trust Powers TIN Type - Line 17, Column (d)

  1. See IRM 3.21.19.21.4 for editing procedures.

  2. Edit the first three SSN/ITIN entries, if present.

Multiple Other Persons With Trust Powers Indicator - Line 17, Columns (a) through (d)

  1. If more than one entry is reported in columns (a) through (d) or on an attachment, edit a "1" in the margin to the right of the first entry.

  2. No editing is required if there is no entry or just one entry.

Attachment of Trust Documents - Lines 18a through 18f

  1. Line 18 requests information about trust documents being filed with the current Form 3520 or previously filed with an earlier return.

  2. Checkbox: This is a one-position field for which an entry may or may not be present. No editing is required.

  3. Year Attached: This is a four-position field for which an entry may or may not be present. Edit the filer's response in "YYYY" format. However, if it is "blank," no editing is required.

  4. If the filer's response to the question is "Attached Previously" , then the year the document was submitted should be reported.

Part I, Page 3, Schedule C

  1. Only entries on Lines 1 and 2 require editing.

    Note:

    Edit the first two entries. If the taxpayer’s entries appear on the second or third line, edit a line number (e.g., L1 or L2), to the left of the filer’s information. from the entry to the first and second line. If the information appears on an attachment, edit the first two entries on the attachment to the first two lines.

  2. If Line 19 checkbox is marked "Yes" and Lines 19(a)-19(d) have not been completed, edit CCC "U" and correspond. Prepare Letter 3653C CAS, mark Line 16.

Date of Original Obligation - Line 19, Column (a)

  1. Edit the date of original obligation in MMDDYYYY format.

    Note:

    If the taxpayer does not write a complete date, then perfect the date. If it reads Nov. or Nov. 2017, edit 11012017. If blank or unknown, edit the first day and month of the return tax period (e.g., 01012017).

  2. Edit the first two entries only.

Tax Year Qualified Obligation First Reported - Line 19, Column (b)

  1. Edit the tax year the qualified obligation was first reported in YYYY format.

  2. Edit the first two entries only.

Amount of Principle Payments Made During the Year - Line 19, Column (c)

  1. The Amount of Principle Payments Made During the Year is numeric (0-9) and dollars only. No editing is required.

Amount of Interest Payments Made During the Year - Line 19, Column (d)

  1. The Amount of Interest Payments Made During the Year is numeric (0-9) and dollars only. No editing is required.

Multiple Original Obligations Indicator - Line 19, Columns (a) through (e)

  1. If more than two entries are reported in columns (a) through (e) or on an attachment, edit a "1" in the margin to the right of the second entry.

  2. No editing is required if there are two or less entries.

Part II, Page 4, U.S. Owner of a Foreign Trust

  1. Part II must be completed by a U.S. Owner of the Foreign Trust if the filer checked the second checkbox on Form 3520, Page 1, which states that the filer is an owner of a foreign trust.

    Reminder:

    Edit the first entry only. If the taxpayer has one entry and it appears on the second or third line, edit a line number (e.g., L1) to the left of the filer’s information from the entry to the 1st line. If the information appears on an attachment, edit the first entry on the attachment to the first line.

    Note:

    Line 22 must be completed. Line 22 is a "Yes/No" checkbox. If the filer answers "Yes" to Line 22, then the filer must attach the Foreign Grantor Trust Owner Statement to Form 3520 (or a similar white paper statement). If the filer answers "No" to Line 22, then the filer must attach Form 3520-A. If neither one of these two items are attached to Form 3520, edit CCC U and correspond. Prepare Letter 3653C CAS, mark Line 17.

  2. Edit Lines 20 thru 23 using the instructions in the following subsections.

Name of Other Foreign Trust Owner - Line 20, Column (a)

  1. Edit from attachments if necessary.

    Note:

    See IRM 3.21.19.20.2 for additional instructions.

Address of Other Foreign Trust Owners - Line 20, Column (b)

  1. Edit from attachments if necessary.

    Note:

    See IRM 3.21.19.20.2 for additional instructions.

Other Foreign Trust Owners Country of Residence- Line 20, Column (c)

  1. Edit the country code to the right of the country name for only the first entry. The United States is not a country for purpose of Country Code. Always circle out any references to the United States,

    Note:

    See IRM 3.21.19.20.2 for additional instructions.

Other Foreign Trust Owners TIN - Line 20, Column (d)

  1. See IRM 3.21.19.21.3 (4)"If/Then" table for editing procedures.

    Note:

    See IRM 3.21.19.20.2 for additional instructions.

    Caution:

    This line must be present if the filer entered data on line 20. If the TIN is missing and not found on the return, edit CCC "U" and route to Entity.

Other Foreign Trust Owners TIN Type

  1. Edit the first entry only if the TIN is an SSN or an ITIN. See IRM 3.21.19.21.4.

    Note:

    See IRM 3.21.19.20.2 for additional instructions.

Other Foreign Trust Owners Relevant Code Section - Line 20, Column (e)

  1. Edit from attachments if necessary.

    Note:

    See IRM 3.21.19.20.2 for additional instructions.

Multiple Other Foreign Trust Owners Indicator - Line 20, Columns (a) through (e)

  1. If more than one entry is reported in columns (a) through (e) or on an attachment, edit a "1" in the margin to the right of the first entry.

  2. No editing is required if there is no entry or just one entry.

Country Where Foreign Trust Was Created - Line 21, Column (a)

  1. See IRM 3.21.19.25.6 for editing procedures.

  2. Edit the country code to the right of the country name or code entered by the filer. If this line is blank and an entry appears in line 6a (Part I) or line 2g (Page 1), edit that country code on Line 21 (a).

    Note:

    The United States is not a country for purposes of Country Code. Always circle out any references to the United States.

Country Whose Law Governs the Foreign Trust - Line 21, Column (b)

  1. See IRM 3.21.19.21.12 for editing procedures.

  2. Edit the country code to the right of the country name or code entered by the filer. If this line is blank and an entry appears in line 6b (Part I) or line 2g (Page 1), edit that country code on Line 21 (b).

    Note:

    The United States is not a country for purposes of Country Code. Always circle out any references to the United States.

Date Foreign Trust was Created - Line 21, Column (c)

  1. Edit the date the foreign trust was created in MMDDYYYY format. If this line is blank and an entry appears in line 6c (Part I), edit that date on Line 21 (c).

    Note:

    If the taxpayer does not write a complete date, then perfect the date. If it reads Nov. or Nov. 2017, edit 11012017. If blank or unknown, but the taxpayer completed Columns (a) and/or (b), then edit the first day and month of the return tax period (e.g., 01012017).

Current Year Form 3520-A filing - Line 22

  1. See Table in IRM 3.21.19.20.2 (1) for Line 22 processing instructions.

Value of Portion of Foreign Trust You Own, Line 23

  1. This is a 12-position field which must be present. If Line 23 reads "None" , then "X" the entry and edit a zero "(0)" on Line 23 (do not correspond). If Line 23 is blank, or reads "N/A" or "-" (dash / hyphen), correspond for the amount. Edit CCC U and prepare Letter 3653C CAS, mark Line 17.

    Reminder:

    If line 23 is blank, dash or zero, and the filer attached the Foreign Grantor Trust Owner Statement to Form 3520, then edit the entry from line 9 of the statement to line 23. Do the same thing if line 23 has an entry but line 9 of the Foreign Grantor Trust Owner statement did not. Do not correspond. If multiple pages 3 of the Form 3520-A are attached such as for husband and wife or Partnerships, then combine the line 9 entries and edit the total to line 23 and do not correspond.

Part III, Distributions to a U.S. Person From a Foreign Trust, Lines 24-53

  1. Part III must be completed if the filer checked the third checkbox on page one.

    Exception:

    For Tax Year 2015 and prior, if the filer also checked the second checkbox on page one, and completed Part II and attached the Foreign Grantor Trust Owner Statement (or similar white paper statement/document), then Part III doesn't need to be completed. However, if completed or partially completed, do not "X" out Part III nor correspond for the incomplete parts in Part III.

  2. Edit Lines 24 through 53 using the following procedures. See IRM 3.21.19.20.3.

  3. If the taxpayer's first entry appears on other than the first line, edit a line number (e.g., L1, L2), or edit the entry up to the first or second blank line (may use a single arrow).

  4. Taxpayers may attach multiple page 5’s. Only edit one page 5 and delete ("X" ) the remainder

  5. If the third checkbox is marked and Part III is incomplete, edit CCC "U" and correspond unless the Exception applies. Prepare Letter 3653C CAS, mark Line 27.

Date of Distribution - Line 24, Column (a)

  1. Edit the date of distribution in MMDDYYYY format.

    Note:

    If the taxpayer does not write a complete date, then perfect the date. If it reads Nov. or Nov. 2017, edit 11012017. If blank or unknown, edit the first day and month of the return tax period (e.g., 01012017).

  2. Edit the first three entries only.

    Note:

    If the information appears on an attachment, edit the first three entries on the attachment to the first three lines.

FMV of Property Received - Line 24, Column (c)

  1. The FMV of Property Received is numeric (0-9).

FMV of Property Transferred - Line 24, Column (e)

  1. The FMV of Property Transferred is numeric (0-9).

Excess of Receipts Over Transfers - Line 24, Column (f)

  1. The Excess of Receipts Over Transfers is numeric (0-9).

Total Excess of Receipts Over Transfers - Line 24, Column (f) (Total)

  1. The Total Excess of Receipts Over Transfers is numeric (0-9).

    Note:

    If the information appears on an attachment, edit the combined "Totals" amount from the attachment to Line 24 Column (f) "Totals" line.

Multiple Distributions Indicator - Line 24, Columns (a) through (f)

  1. If more than three entries are reported on Line 24, Columns (a) through (f) or on an attachment, edit a "1" in the margin to the right of the third entry.

  2. No editing is required if there are three or fewer entries.

FMV of Loan Proceeds- Line 25, Column (a)

  1. The FMV of Loan Proceeds is numeric (0-9).

Date of Original Loan Transaction - Line 25, Column (b)

  1. Edit the date of the FMV of Loan Proceeds in MMDDYYYY format.

    Note:

    If the taxpayer does not write a complete date, then perfect the date. If it reads Nov. or Nov. 2017, edit 11012017. If blank or unknown, edit the first day and month of the return tax period (e.g., 01012017).

  2. Edit the first two entries only.

Maximum Term of Repayment of Obligation- Line 25, Column (c)

  1. This is a 12-position field.

  2. Edit the date of the Maximum Term of Repayment of Obligation in YYYY format.

Interest Rate of Obligation - Line 25, Column (d)

  1. Edit in NNNN format.

  2. Valid characters are numeric (0-9) only.

  3. Do not edit the decimal since the program places an "implied" decimal in the second position.

  4. Edit zeroes to fill blank positions as follows:

    • 8.5% = 0850

    • 10.25% = 1025

    • .9% = 0090

FMV of Qualified Obligation - Line 25, Column (f)

  1. The FMV of Qualified Obligation is numeric (0-9).

Amount Treated as Distribution From the Trust - Line 25, Column (g)

  1. The Amount Treated as Distribution From the Trust is numeric (0-9).

    Note:

    If the information appears on an attachment, edit the combined "Totals" amount from the attachment to Line 25 Column (g) "Totals" line.

Multiple FMV of Loan Proceeds Indicator Line 25, Columns (a) through (g)

  1. If more than two entries are reported on Line 25, Columns (a) through (g) or on an attachment, edit a "1" in the margin to the right of the second entry.

  2. No editing is required if there are two or less entries.

Total Distributions - Line 27

  1. The Total Distributions is numeric (0-9).

Date of Original Loan Transaction - Line 28, Column (a)

  1. Edit the date of the original loan transaction in MMDDYYYY format.

    Note:

    If the taxpayer does not write a complete date, then perfect the date. If it reads Nov. or Nov. 2017, edit 11012017. If blank or unknown, edit the first day and month of the return tax period (e.g., 01012017).

  2. Edit the first two entries only.

    Note:

    If the taxpayer has two entries and it appears on the second, third or fourth lines, edit a line number (e.g., L1, L2) to the left of the filer’s information or edit up, so the first two lines get transcribed. If the information appears on an attachment, edit the first two entries on the attachment to the first two lines.

Tax Year Qualified Obligation First Reported - Line 28, Column (b)

  1. Edit the year the qualified obligation was first reported in YYYY format.

  2. Edit the first two entries only.

Amount of Principal Payments - Line 28, Column (c)

  1. The Amount of Principal Payments is numeric (0-9).

Amount of Interest Payments - Line 28, Column (d)

  1. The Amount of Interest Payments is numeric (0-9).

Multiple Original Loan Transactions Indicator - Line 28, Columns (a) through (e)

  1. If more than two entries are reported in columns (a) through (e) or on an attachment, edit a "1" in the margin to the right of the second entry.

  2. No editing is required if there are two or less entries.

RESERVED

  1. RESERVED.

Foreign Grantor Trust Beneficiary Statement - Line 29

  1. If the response to Question 29 is "Yes" :

    • The remainder of Part III is not required to be completed by the taxpayer.

    • Form 3520-A, Page 4, Foreign Grantor Trust Beneficiary Statement or similar statement must be attached.

    • If Form 3520-A, Page 4 is missing, edit CCC "U" and correspond. Prepare Letter 3653C CAS, mark Line 20.

  2. If the response to Question 29 is "No" , then:

    • Schedule A must be completed.

    • If Schedule A line 37 is greater than zero, then the taxpayer must also complete Schedule C.

    • If Schedule A or Schedule C is missing or incomplete, edit CCC "U" and correspond. Prepare Letter 3653C CAS, mark Line 21.

Foreign Nongrantor Trust Beneficiary Statement - Line 30

  1. If the response to Question 30 is "Yes" :

    1. Schedule A or Schedule B must be completed. If both Schedule A and Schedule B are missing or incomplete, edit CCC "U" and correspond. Prepare Letter 3653C CAS, mark Line 22.

    2. A Foreign Nongrantor Trust Beneficiary Statement must be attached.

    3. If Schedule A line 37 or Schedule B line 41a is greater than zero, edit CCC U and correspond if Schedule C is not completed. Prepare Letter 3653C CAS, mark Line 22.

  2. If the response to Question 30 is "No" :

    1. Schedule A must be completed.

    2. Schedule C must be completed if line 37 is greater than zero.

    3. If Schedule A or Schedule C is missing or incomplete, edit CCC "U" and correspond. Prepare Letter 3653C CAS, mark Line 21.

Schedule A - Default Calculation of Trust Distributions

  1. Schedule A must be completed if the response to Line 29 or 30 is answered "No" .

Schedule B - Actual Calculation of Trust Distributions

  1. Schedule B may be completed if the filer answered "Yes" to Line 30.

Schedule C - Calculation of Interest Charge

  1. Schedule C must be completed if there is an amount greater than zero on either Line 37 (Sch. A) or 41a (Sch. B).

Part IV, U.S. Recipients of Gifts or Bequests From Foreign Persons - Page 6

  1. Part IV is completed by individuals who received gifts or bequests during the current tax year from Foreign Persons.

    Note:

    Taxpayers can attach multiple page 6's, however, only edit one page 6. Delete (X) the remainder.

Line 54 Checkbox

  1. If the filer checkbox is marked Yes:

    1. Line 54 columns (a) thru (c) is required.

    2. If not present, edit CCC "U" and correspond. Prepare Letter 3653C CAS, mark Line 23.

    Exception:

    If Line 54 column (b) contains the words "No gifts or bequests exceed $5,000," do not correspond, instead circle the Yes box and check the No checkbox.

Date of Gift or Bequest in Excess of $5,000 - Line 54, Column (a)

  1. Edit the date of the gift or bequest in MMDDYYYY format.

    Note:

    If the taxpayer does not write a complete date, then perfect the date. If it reads Nov. or Nov. 2017, edit 11012017. If blank or unknown, edit the first day and month of the return tax period (e.g., 01012017).

  2. Only edit the first two entries of columns a, b and c.

    Note:

    If the taxpayer has two entries and it appears on the second, third or fourth lines, edit a line number (e.g., L1 or L2) to the left of the filer’s information or edit up, so the first two lines get transcribed. If the information appears on an attachment, edit the first two entries on the attachment to the first two lines.

Description of Property Received as Gift or Bequeathed - Line 54, Column (b)

  1. The entry, if present, must be alpha (a-z) numeric (0-9).

FMV of Property Received - Line 54, Column (c)

  1. The FMV of Property Received is numeric (0-9).

Indicator: More than 2 Entries - Line 54, Columns (a) through (c)

  1. If more than two entries are reported in columns (a) through (c) or on an attachment, edit a "1" in the margin to the right of the second entry.

  2. No editing is required if there are two or less entries.

Line 55 Checkbox

  1. If Line 55 Checkbox is marked "Yes" :

    • Lines 55 columns (a) through (g) are required.

    • If not present, edit CCC "U" and correspond. Prepare Letter 3653C CAS and mark Line 24.

Date of Gift - Line 55, Column (a)

  1. Edit the date of the gift in MMDDYYYY format. See IRM 3.21.19.20.4.

    Note:

    If the taxpayer does not write a complete date, then perfect the date. If it reads Nov. or Nov. 2017, edit 11012017. If blank or unknown, edit the first day and month of the return tax period (e.g., 01012017).

  2. Edit the first two entries only of columns a thru g.

    Note:

    If the taxpayer has two entries and it appears on the second, third, or forth lines, edit a line number (e.g., L1 or L2) to the left of the filer’s information or edit up, so the first two lines get transcribed. If the information appears on an attachment, edit the first two entries on the attachment to the first two lines.

Name of Foreign donor - Line 55, Column (b)

  1. No editing is required.

Address - Line 55, Column (c)

  1. Edit a country code, if present. See Document 7475, Section 5.

  2. Edit the first two entries only.

Identification Number - Line 55, Column (d)

  1. No editing required.

TIN Type - Line 55, Column (d)

  1. The TIN type must be edited if the TIN is an SSN or an ITIN.

  2. Valid characters are "0" (zero) and "blank" .

    If... Then...
    If TIN is nine digits other than an EIN Edit a "0" (zero) to the right of the TIN. See Figure 3.21.19-5

Checkbox: Corporation or Partnership - Line 55, Column (e)

  1. No editing required.

Description of Property Received - Line 55, Column (f)

  1. No editing required.

FMV of Property Received - Line 55, Column (g)

  1. The FMV of Property Received is numeric (0-9).

Indicator: More than 2 Entries - Line 55, Columns (a) through (g)

  1. If more than two entries are reported in columns (a) through (g) or on an attachment, edit a "1" in the margin to the right of the second entry.

  2. No editing is required if there are two or less entries.

Checkbox: Foreign Donor a Nominee or Intermediary - Line 56

  1. See IRM 3.21.19.20.4.

♦Signature♦

  1. A signature (of a gift recipient, trust manager or trust owner) and jurat are required for all returns except the following:

    Note:

    If a signature does not appear on the designated line for the taxpayer's signature, follow the procedures in the "If/Then" table below.

    • Returns prepared under IRC 6020(b). These returns must be signed by a Compliance Function Representative. See IRM 3.21.19.14.3.

    • Returns prepared by Examination, for example SFR (Substitute for Return) or "SUBSTITUTE RETURN" .

      Caution:

      Returns secured by Examination do require a signature and jurat. See IRM 3.21.19.14.3.

    • Dummy returns prepared by IRS.

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

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

    • Re-entry returns originally filed electronically (E-File). These returns may be identified by the presence of Mod E-File printouts or "Tax Return Print (TRPRT) Do Not Process" in lieu of an actual return.

      Note:

      If the TRPRT print states "TRPRT Print Do Not Process" in the top margin, circle the words "Do Not Process."

  2. Do not correspond for a signature on "CIS" returns that have Form 13596 attached. See IRM 3.21.19.12.1Correspondence Imaging System (CIS) Returns, for processing instructions.

  3. If a signature is missing and:

    If... Then...
    • The return is not signed on the line designated for the taxpayer's signature,

    • The jurat is not present on the line designated for the taxpayer’s signature (non-standard return), or

    • Only the entity information is present and there are no attachments containing tax data,

    1. Correspond using Letter 3653C CAS, mark Line 36.

    2. Edit CCC "U" on Form 3520 or Action Code "225 or 226" on Form 3520-A.

    3. Leave in batch and continue editing.

  4. If the jurat is altered or stricken (crossed-out), it may be a frivolous return. See IRM 3.21.19.14.3.6, Frivolous Arguments for potential frivolous arguments that must be referred to the Ogden Compliance Campus Examination Frivolous Return Program..

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

    1. If the "signature declaration" is altered or stricken (crossed out), see IRM 3.21.19.14.3.6, Frivolous Arguments.

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

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

    Note:

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

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

Preparer Signature

  1. A signature may or may not be present; do not correspond if not present.

  2. Do not correspond for a missing signature on any return prepared by a Compliance function.

  3. Do not question any signature on the return. Internal Revenue (IR) Regulations Section 301.6064-1 allows the Service to presume that the signature on the return, statement or other document is the true signature of the person who actually signed the document.

  4. A constructive signature (that is, a signature on an accompanying check, letter, etc.) is not acceptable unless the signature follows a perjury statement containing the same language as the jurat of the tax return.

Paid Preparer Tax Identification Number (PTIN)

  1. The Preparer's PTIN is located to the right of the Preparer's Signature at the bottom of Form 3520 or Form 3520-A (page 1).

    Reminder:

    If the return is for 2009 or prior, then the PTIN line will be named "Preparer's SSN or PTIN" .

  2. The PTIN is nine characters beginning with the alpha "P" followed by eight digits (e.g., PXXXXXXXX).

  3. Valid characters are numeric (0-9) and alpha "P" only.

  4. If the entry in the PTIN area is an invalid number, or does not begin with a "P" , or is an SSN, circle-out the number.

    Caution:

    If the return is for 2009 or prior, and the entry on the line is an SSN, do not circle it.

  5. The Firm's EIN (Paid Preparer's EIN - 2009 and prior revisions) must be a nine-digit number. The Firm's EIN is entered in NN-NNNNNNN format.

  6. No action is required on amended returns.

  7. Circle the Firm's EIN (Paid Preparer's EIN - 2009 and prior revisions) if all zeroes or all nines

Form 3520-A, Annual Return of Foreign Trust With a U.S. Owner

  1. Form 3520-A is processed at the Ogden Submission Processing Campus (OSPC) under Program Code 12320 with the following Master File Tax (MFT) Code and Document Locator Number (DLN) make-up:

    • MFT Code 42,

    • File Location Code 60;

    • Tax Class 3,

    • Doc. Code 82;

  2. Form 3520-A is the annual information return of foreign trust with a U. S. owner. It is used to set forth a full and complete accounting of the

    • Trust’s activities

    • Trust’s operations and

    • Ownership of a foreign trust by a U.S. person and

    • Other relevant information

    Note:

    In addition to the above, the U.S. owner of the foreign trust is responsible for ensuring that the trust annually files a Form 3520-A and furnishes such information (as the Secretary prescribes) to other U.S. owners and/or U.S. beneficiaries of the trust.

  3. Form 3520-A is to be filed with the Ogden Submission Processing Campus (OSPC). Form 3520-A is to be transshipped to OSPC if received at another office.

    Note:

    If you receive a loose page 3 and/or 4 (Form 3520-A) in your batch work, transship it to OAMC. Prepare and attach Form 3499 to them and address it to OAMC BMF INTL Unit, M/S 6552.

  4. The due date for Form 3520-A is the 15th day of the third month following the end of the trust’s tax year. This return filing can be a Fiscal or Calendar year return. An extension to file Form 3520-A is made on Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns.

  5. Form 3520-A must be filed with an EIN.

  6. Form 3520-A is a "Non-Remittance" return.

  7. Payment of Taxes- Any tax arising from a distribution reported on Form 3520-A must be paid with the tax return of the recipient of the distribution. (e.g., Form 1040, Form 1120, Form 1041, Form 1065, Form 1040-NR, etc.).

  8. Civil Penalty

    1. A late filed Form 3520-A filed for tax years ending before January 1, 2010 will be charged with an initial 5 percent civil penalty under IRC 6677(b) on the gross reportable amount, which is the gross value of the portion of the trust’s assets treated as owned by the U.S. owner at the close of the foreign trust's tax year. The penalty is imposed on the U.S. owner.

    2. A late-filed Form 3520-A filed for tax years beginning after December 31, 2009 will be charged an initial civil penalty equal to the greater of $10,000 or 5 percent of the gross value of the portion of the trust’s assets that are treated as owned by the U.S. owner at the close of the foreign trust’s tax year.


    Additional civil penalties:
    If a Form 3520-A is not filed until more than 90 days after the IRS mails notice to the U.S. owner responsible for filing the form, additional civil penalties of $10,000 are imposed for each 30-day period during which the failure to file continues. The aggregate amount of the civil penalty imposed cannot exceed the gross reportable amount.

  9. The Program Completion Date (PCD) is 45 days from the due date or received date, whichever is later.

Pre-Master File Processing of Form 3520-A

  1. Reject any Form 3520-A filed for tax period ending December 31, 1999 and prior.

  2. Rejection Action:

    1. Prepare Form 3210, Document Transmittal, and write "ALPHA" in the remarks section of the transmittal. Address the transmittal to "Cycle Control M/S 6725."

    2. Attach Form 4227 with explanation "199912 return or prior" to the face of the document and write the same explanation on the first line of Form 3210.

  3. Form 3520-A with tax periods 200012 and later are processed and filed at OSPC. See IRM 3.21.19.15.1 for information on pre-master file processing of Form 3520.

♦BMF Consistency♦

  1. The purpose of this initiative is to achieve consistency in the BMF Code & Edit processing IRMs.

  2. Topics for BMF Consistency have been identified and developed as a coordinated effort between Cincinnati, Ogden and Paper Processing Branch BMF C&E/ER.

  3. BMF consistency subsections are identified by a ♦ (diamond) before and after the title.

  4. Text in normal print is the common processes for BMF returns. The text in BOLD print is form specific and applies to this IRM only.

General Editing Guidelines

  1. See IRM 3.21.19.10 for instructions.

  2. Arrange the return in the following order:

    1. Form 3520-A, page 1.

    2. Form 3520-A, page 2.

    3. Form 3520-A, page 3.

    4. Form 3520-A, page 4.

    5. Any attachment(s) to support entries.

♦Edit Marks♦

  1. See IRM 3.21.19.10.1.

Action Codes

  1. The Error Resolution System (ERS) Action Code indicates that specific information is missing and the record is to be rejected or suspended from processing. The code will have sufficient detail to indicate if correspondence is to be sent to the taxpayer or the specific in-house research or action required.

  2. See IRM 3.21.19.10.2 for more detailed action code information. You can also refer to IRM 3.12.38 for more valid Action Codes.

  3. Code & Edit will edit the action code in the lower left margin of Form 3520-A.

  4. Correspond using local procedures.

  5. Only one Action Code can be assigned to a record at one time. Assign Action Codes in the following priority order:

    1. Action Code 320

    2. Action Code 4XX

    3. Action Code 6XX

    4. Action Code 3XX

    5. Action Code 2XX

  6. If more than one action code of the same priority is required (e.g., 342 and 355), use the code with the shortest suspense period and attach Form 4227 to indicate the second unprocessable condition.

Unprocessable Conditions

  1. See IRM 3.21.19.11.

General Correspondence

  1. See IRM 3.21.19.12.

Attachments to Form 3520-A

  1. See IRM 3.21.19.13.

Special Conditions

  1. See IRM 3.21.19.14.

Amended Returns

  1. See IRM 3.21.19.14.1.

Delinquent Returns

  1. See IRM 3.21.19.14.2.

♦Secured/Prepared Returns♦

  1. See IRM 3.21.19.14.3.

♦IRC 6020(b) - Prepared by Collection♦
  1. See IRM 3.21.19.14.3.1.

♦Collection Secured♦
  1. See IRM 3.21.19.14.3.2.

♦Examination Prepared♦
  1. See IRM 3.21.19.14.3.3.

♦Examination Secured♦
  1. See IRM 3.21.19.14.3.4.

♦Re-Entry Document Procedures♦

  1. See IRM 3.21.19.14.4.

♦Form 3893 - Re-entry Document Control♦
  1. See IRM 3.21.19.14.4.1.

♦Form 13596 - Reprocessing Returns♦
  1. See IRM 3.21.19.14.4.2.

Tax Period

  1. See IRM 3.21.19.16.

"Initial" Short Period Return

  1. See IRM 3.21.19.18.4.

"Final" Short Period Return

  1. See IRM 3.21.19.16.1.

Early-Filed Return

  1. Early-filed returns must be held for processing until the beginning of the appropriate processing year. Therefore, edit Action Code "480" on early filed Form 3520-A and route to Rejects to hold for processing.

  2. An early-filed Form 3520 or Form 3520-A, is a return that is filed prior to January 1st of the processing year and must be held until January 1 (tax period 201812 must be held until January 1, 2019).

Fiscal Year Return

  1. See IRM 3.21.19.16.3.

♦Received Date♦

  1. See IRM 3.21.19.17.

Received Date Chart

  1. See IRM 3.21.19.17.1.

Computer Condition Codes (CCC) Form 3520-A

  1. Computer Condition Codes (CCC) are used to identify a special condition or computation for the computer. Edit the "CCC" to the right of the last line of Line 2. See Exhibit 3.21.19-4.

  2. Only the following characters are valid: C, F, G, I, N, R, W, 3, 4, 9, and blank.

CCC "C" - No Reply to Request For Information

  1. See IRM 3.21.19.18.1.

CCC "F" - Final Return

  1. See IRM 3.21.19.18.2.

CCC "G" - Amended Return

  1. Edit CCC "G" when:

    1. The Amended return checkbox is checked, or

    2. There is a clear indication on the return itself or on an attachment that the return is an amended, corrected, supplemental, etc.

  2. Do not edit CCC "G" on amended Form 3520-A. See IRM 3.21.19.14.1.

CCC "I" - Initial Return

  1. Edit CCC "I" (letter i) when the "Initial return" checkbox is checked.

    • The return or attachments indicate "INITIAL" , "FIRST RETURN" or "FIRST TIME FILER," etc.

    • Remove the return from the batch and route to Entity to have filing requirements set.

CCC "N" - Bypass Employer Identification Number (EIN)

  1. Edit CCC "N" to bypass the EIN requirement when the EIN is missing, incomplete, contains all the same numeric values; (e.g., all 9’s or zeros). Valid only on designated lines.

  2. See IRM 3.21.19.18.5.

CCC "R" - Suspend CP 223

  1. Suspend Initiation of CP 223 notice with Computer Condition Code "R" .

  2. Edit CCC "R" on all returns until further notice

CCC "W" - Statute

  1. Edit CCC "W" on Form 3520-A when the return is received more than two years and nine months after the return due date. Form 3520-A is an Information Return and does not require statute clearance. Do not route to Statute Control.

CCC "3" - No Reply to Correspondence

  1. See IRM 3.21.19.18.9.

CCC "4" - 6020(b) Return

  1. See IRM 3.21.19.18.10.

CCC "9" - RESERVED

  1. See IRM 3.21.19.18.12. CCC "9" should not be edited on Form 3520-A.

Form 3520-A, Page 1, Part I

  1. The entity area of the return identifies the Foreign Trust as the controlling entity on the Business Master File (BMF). If the trust entity information on Lines 1a - 1g is incomplete or not present, correspond with the U.S. Owner on Form 3520-A, page 3, Line 6a - 6g. Edit Action Code 211 (for domestic) or 215 (for international), and prepare Letter 3653C CAS, mark Line 30.

    Note:

    Refer to page 3 of Form 3520-A Line 6a - 6g U.S. Owner when correspondence is required. If Form 3520-A, page 3, Line 6a - 6g is also incomplete or not present, see IRM 3.21.19.50.2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Name of Filer - Line 1a

  1. See IRM 3.21.19.21.1.

    Reminder:

    Edit the name control.

Employer Identification Number - Line 1b(1)

  1. Line 1b(1) may or may not be present. If present, it must be an EIN.

    1. If not present, send to Entity.

    2. If anything other than an EIN, research. If not found, send to Entity.

Filer's Address - Line 1c

  1. See IRM 3.21.19.21.5 and IRM 3.21.19.21.6.

Filer's City - Line 1d

  1. See IRM 3.21.19.21.9.

Filer's State or Province - Line 1e

  1. If the State name is spelled out, do not edit the two-letter state code.

  2. See IRM 3.21.19.21.10.

Filer's ZIP Code - Line 1f

  1. See IRM 3.21.19.21.11.

Filer's Country - Line 1g

  1. Edit a country code, if present. See IRM 3.21.19.21.12.

U.S. Agent Appointed - Line 2

  1. If Line 2 checkbox is marked "Yes" , Lines 2a - 2e are not required. Lines 3a - 3g must be completed. If missing, edit Action Code 211 or 215 and correspond. Prepare Letter 3653C CAS, mark Line 31.

  2. If Line 2 checkbox is marked "No" , filer will complete the checkboxes on Lines 2a - 2e.

Name of U.S. Agent - Line 3a

  1. No editing is required.

U.S. Agent TIN and TIN Type - Line 3b

  1. See IRM 3.21.19.21.3 and IRM 3.21.19.21.4 These instructions also apply to Form 3520-A.

Trustee TIN and TIN Type - Line 4b

  1. See IRM 3.21.19.21.3 and IRM 3.21.19.21.4 These instructions also apply to Form 3520-A.

    Note:

    These lines may or may not be present. If lines 4a - 4g are present, then only edit the TIN Type indicator if the TIN is an SSN or ITIN. Otherwise, leave blank.

    Note:

    Refer to page 3 of Form 3520-A question 6a - 6g U.S. Owner when correspondence is required. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Foreign Grantor Trust Owner Statements - Line 6

  1. Filer should enter the number of Form 3520-A page 3, Foreign Grantor Trust Owner Statements attached to this return.

  2. If Blank:

    1. Search the return and count the number of Form 3520-A page 3, Foreign Grantor Trust Owner Statements attached.

    2. Edit the number found to the blank Line 6.

♦Signature♦

  1. See IRM 3.21.19.34.

Preparer's Signature

  1. See IRM 3.21.19.34.1.

♦Preparer's EIN or PTIN

  1. See IRM 3.21.19.34.2.

Form 3520-A, Page 2, Part II Foreign Trust Income

  1. Part II contains the income statement information for the foreign trust and Part III the Foreign Trust Balance Sheet.

  2. If page 2 is not attached or if page 2, Parts II and III are blank, edit Action Code 211 or 215 and correspond. Prepare Letter 3653C CAS, mark Line 32.

Net Short-Term Capital Gain (Loss) - Line 5a

  1. The entry must be numeric (0-9).

Net Long-Term Capital Gain (Loss) - Line 5b

  1. The entry must be numeric (0-9).

Ordinary Gains (Losses) Line 6

  1. The entry must be numeric (0-9).

Total Income - Line 8

  1. The entry must be numeric (0-9).

Total Expenses - Line 15

  1. The entry must be numeric (0-9).

Net Income (Loss) - Line 16

  1. The entry must be numeric (0-9).

FMV of Total Distributions From Trust - Line 17a

  1. The entry must be numeric (0-9).

Distribution to U.S. Owners – Name of Owner - Line 17b(i)

  1. The entry may or may not be present.

  2. If the taxpayer has one entry and it appears on the second row, edit L1 to the left of the filer’s information or a RED arrow from the second row to the first row so it can be transcribed by ISRP. Do this for columns 17b(i) through 17b(iv).

    Note:

    If the taxpayer list the information on an attachment, then edit the first item listed on the attachment to the first row of columns 17b(i) through 17b(iv).

Distribution to U.S. Owners – TIN and TIN Type - Line 17b(ii)

  1. See IRM 3.21.19.21.3 and IRM 3.21.19.21.4

    Note:

    If the TIN is missing or is not an SSN or ITIN, do not perfect or edit.

  2. Edit the TIN Type Indicator "0" to the right of the SSN/ITIN for the first entry only.

Distribution to U.S. Owners – Date of Distribution - Line 17b(iii)

  1. The entry may or may not be present. IRM 3.21.19.10(9).

Distribution to U.S. Owners – Fair Market Value (FMV) - Line 17b(iv)

  1. The entry may or may not be present. If present, the entry must be numeric (0-9).

Multiple Distributions to U.S. Owner Indicator

  1. If more than one entry is reported in columns (i) through (iv) or on an attachment, edit a "1" in the margin to the right of the first entry.

  2. No editing is required if there is no entry or just one entry.

Distribution to U.S. Beneficiary – Name of Beneficiary - Line 17c(i)

  1. The entry may or may not be present.

  2. If the taxpayer has one entry and it appears on the second row, edit L1 to the left of the filer’s information.

    Note:

    If the taxpayer list the information on an attachment, then edit the first item listed on the attachment to the first row of columns 17c(i) through 17c(iv).

Distribution to U.S. Beneficiary TIN and TIN Type- Line 17c(ii)

  1. See IRM 3.21.19.21.3 and IRM 3.21.19.21.4.

    Note:

    If the TIN is missing or is not an SSN or ITIN, do not perfect or edit.

  2. Edit the TIN Type Indicator "0" to the right of the SSN/ITIN for the first entry only.

Distribution to U.S. Beneficiary – Date of Distribution - Line 17c(iii)

  1. The entry may or may not be present.

Distribution to U.S. Beneficiary – Fair Market Value (FMV) - Line 17c(iv)

  1. The entry may or may not be present. If present, the entry must be numeric (0-9).

Multiple Distributions to U.S. Beneficiaries Indicator

  1. If more than one entry is reported in columns (i) through (iv) or on an attachment, edit a "1" in the margin to the right of the first entry.

  2. No editing is required if there is no entry or just one entry.

Form 3520-A, Page 2, Foreign Trust Balance Sheet

  1. All "T" lines in columns (b) and (d) must be numeric (0-9).

Form 3520-A, Page 3, Foreign Grantor Trust Owner Statement

  1. The Foreign Grantor Trust Owner Statement contains trust owner information that is prepared by the trustee (or the U.S. owner if the U.S. Owner is filing a substitute )Form 3520-A. The trustee must prepare a separate statement for each U.S. owner of the trust for which a Form 3520-A is being filed. Up to five U.S. owners’ information can be transcribed.

    Note:

    If multiple page 3 Owner Statements are attached, edit the first five page 3 Owner Statements. For the first Owner Statement, edit all entries as instructed below. For Owner Statements 2 through 5, edit only Lines 6a - h, and Line 9.

Tax Year of U.S. Owner Reporting Statement – Line 5

  1. Edit the filer’s entry in "YYYYMM" format.

  2. Valid characters are Numeric 0-9.

  3. If blank, edit the tax period of the Form 3520-A.

    Note:

    If Form 3520-A is a 2017 return, edit 201712. For Fiscal Year returns, see IRM 3.21.19.16.3.

U.S. Owner Name - Line 6a

  1. No editing is required.

  2. If U.S. Owner name and address entries on page 3, Lines 6a - 6g are all blank or incomplete, edit Action Code 211 or 215, and issue correspondence to U.S. Agent on page 1, Line 3a, or Trustee on page 1, Line 4a. Prepare Letter 3653C CAS, mark Line 33 and Line 37 with the following narrative:
    Information in this letter pertains to (Name of Foreign Trust).
    (Insert the foreign trust name from Form 3520-A, page 1, Line 1a.)

    Exception:

    If the U.S. Owner, U.S. Agent, and Trustee lines are all blank, the workleader should refer the case to the P&A analyst who will contact the Headquarters Analyst for instructions.

U.S. Owner TIN - Line 6b

  1. This is a required field if a name is present on Line 6a. See IRM 3.21.19.21.3.

    Note:

    If the taxpayer lists multiple TINs on Line 6b, circle out all but the first TIN. Do Not edit CCC N to bypass the TIN. If missing, remove from batch and route to Entity for research.

U.S. Owner TIN Type - Line 6b

  1. Editing is required. See IRM 3.21.19.21.4.

U.S. Owner Address - Line 6c

  1. Editing may be required. See IRM 3.21.19.21.5.

U.S. Owner City or Town - Line 6d

  1. Editing may be required. See IRM 3.21.19.21.9.

U.S. Owner State or Province - Line 6e

  1. Editing may be required. See IRM 3.21.19.21.10.

U.S. Owner ZIP or Postal Code - Line 6f

  1. Editing may be required. See IRM 3.21.19.21.11.

U.S. Owner Country Code - Line 6g

  1. Editing may be required. See IRM 3.21.19.21.12.

Service Center Where U.S. Owner Files Income Tax Return - Line 6h

  1. Editing is required. IRM 3.21.19.21.14.

U.S. Owner Portion of Gross Trust Value - Line 9

  1. An entry must be present on this line unless it is an Amended or Final return. If the taxpayer does not enter an amount on Line 9, or writes "100%" , "$0" , "Zero" , ".00" , "N/A" or "-" (dash/hyphen), correspond for the amount. Prepare Letter 3653C CAS, mark Line 35 and edit Action Code 211 or 215.

    Exception:

    If Form 3520-A is a Final or Amended return, then do not correspond for the value of the trust.

Statement of Foreign Trust Income Attributable to U.S. Owner

  1. If the entry appears as "N/A" or "None" , then edit a "0" .

Form 3520-A, Page 4, Foreign Grantor Trust Beneficiary Statement

  1. The Foreign Grantor Trust Beneficiary Statement is prepared by the trustee and contains trust owner information that is provided to each beneficiary that received a distribution from the trust during the tax year.

    Note:

    If multiple page 4's are attached, only edit the first page 4.

  2. No editing is required for Line 6a.

U.S. Beneficiary Name - Line 6a

  1. No editing is required.

U.S. Beneficiary TIN - Line 6b

  1. This field may or may not be present. If present, see IRM 3.21.19.21.3.

    Note:

    If the taxpayer lists multiple TINs on Line 6b, circle out all but the first TIN.

    Note:

    If the TIN is missing or is not an SSN or ITIN, do not perfect or edit.

U.S. Beneficiary TIN Type - Line 6b

  1. If Line 6b is an SSN/ITIN, then edit TIN Type Indicator "0" . See IRM 3.21.19.21.4.

Multiple Distributed Property to Beneficiaries, Line 7

  1. If Lines 6a - 6g are completed, Line 7a and 7b are required. If missing or incomplete, edit Action Code 211 or 215 and correspond. Prepare Letter 3653C CAS, mark Line 34.

  2. If more than two entries are reported on Line 7, in columns (a) and (b) or on an attachment, edit a "1" in the margin to the right of the second entry of Line 7 column (b).

  3. No editing of Line 7 column (a) and (b) is required.

Owner of Foreign Trust, Line 9

  1. Valid characters are "I" , "P" , and "C" .

  2. Edit in the margin to the right of the checkboxes on Line 9 as follows:

    If... Then...
    "Individual" checkbox is checked Edit "I" (i).
    "Partnership" checkbox is checked Edit "P" .
    "Corporation" checkbox is checked Edit "C" .
    Multiple boxes are checked or none of the boxes are checked Edit "C" as the default Foreign Trust Owner.

Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts

Exhibit3.21.19-1Form 3520RoadmapThis is an Image: 34014029.gif
 

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CCC Definition
3 No Reply Correspondence
4 Prepared under IRC 6020(b)
5 Extension requested on Form 1040 per Form 3520, Line 1k
C Initiate CP 223 to PAM for civil penalty assessment under IRC 6677
F Final Return
G Amended Return
I Initial Return
N Bypass EIN
R Suspend initiation of CP 223 notice
U Unprocessable Return
Y Short Period Return
Type of Return Filer Definition
I Individual
P Partnership
C Corporation
T Trust
E Executor
I None/Multiple

Completion Requirements

If Then
Checkbox 1 (U.S. Transferor) is checked Page 1 and the relevant portions of Part I must be completed.
Checkbox 2 (U.S. Owner) Page 1 and Part II must be completed.
Checkbox 3 (U.S. Beneficiary) Page 1 and Part III must be completed.
Checkbox 4 (U.S. Person who received Gifts) is checked Page 1 and Part IV must be completed.
 
Filer’s TIN Type
0 or blank
0 if SSN or ITIN
Blank if EIN NN-NNNNNNN
ITIN — begin with 9, fourth and fifth digits are in range 50-65, 70-88, 90-92, and 94-99

♦U.S. Possessions ZIP Codes♦

Exhibit3.21.19-2U.S. Possessions ZIP Codes

American Samoa (AS)

City ZIP Code City ZIP Code
Faga'itua 96799 Olosega Manua' 96799
Leone 96799 Pago Pago 96799
 

Federated States of Micronesia (FM)

City ZIP Code City ZIP Code
Chuuk 96942 Pohnpei 96941
Kosrae 96944 Yap 96943
 

Guam (GU)

City ZIP Code City ZIP Code
Agana 96910 Tamuning 96931
Inarajan 96917 Umatac 96915
Merizo 96916 Yona 96915
 

Marshall Islands (MH)

City ZIP Code City ZIP Code
Ebeye 96970 Majuro 96960
 

Northern Mariana Islands (MP)

City ZIP Code City ZIP Code
Capitol Hill 96950 Saipan 96950
Rota 96951 Tinian 96952
 

Palau (PW)

City ZIP Code City ZIP Code
Koror 96940 Palau 96940
 

Puerto Rico (PR)

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

Virgin Islands - U.S. (VI - Entity Section) (VQ - Other than Entity Section)

City ZIP Code City ZIP Code
Charlotte Amalie 00802 Saint Croix 00820
Christiansted 00820 Saint John 00830
Cruz Bay 00830 Saint Thomas 00805
Downtown 00840 Sunny Isle 00850
Frederiksted 00840 Veterans Annex 00820
Kingshill 00850    

Form 3520-A Computer Condition Codes

Exhibit3.21.19-3Form 3520-A Computer Condition Codes
Code Explanation
3 No reply to correspondence.
4 Prepared and signed by IRS employee under IRC 6020B.
9 Reserved
C Initiate CP 223 to PAM for civil penalty assessment under IRC 6677
F Final Return is indicated by taxpayer.
G Amended Return
I Initial Return
N Bypass EIN
R Suspend CP 223
W Return received more than two years and nine months after tax period

Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner

Exhibit3.21.19-4Form 3520-A, Annual Information Return of Foreign Trust With a U.S. OwnerThis is an Image: 34014067.gif
 

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♦Frivolous Arguments Criteria♦

Exhibit3.21.19-5Frivolous Arguments Criteria

Potential Frivolous Arguments for Examination Review

Potential Frivolous Arguments 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/UCC (Uniform Commercial Code) 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/or 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.
Collection 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 and/or signed by someone with delegated authority. They may have no certificate of assessment attached, do not comply in form or content with a State or Local law, are not in a certain format or lack a valid Office of Management and Budget (OMB) number or other frivolous positions.
Disclaimer Submits a disclaimer stating, "disclaims the liability for the tax due" , making the liability on the return zero.
Fifth Amendment Assertion of the Fifth Amendment right against self-incrimination as a basis for not providing any financial information.
Foreign Income Argues that United States citizens and residents are not subject to tax on their wages or other income derived from sources within the United States, as only foreign-based income or income received by nonresident aliens and foreign S 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 (Original Issue Discount) 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 Code of Federal Regulations (CFR) Section 1.861, promoters of this scheme advise employers to stop withholding and paying payroll taxes on their employee's wages. In addition, some employers file amended payroll tax returns and request refunds of previously paid payroll taxes.
IRS is a Private Organization/Collects Tribute, Not Taxes Argues that the IRS is an entity named the Internal Revenue and Tax Service, Inc., which was incorporated in Delaware in 1933, it is a collection agency for the Federal Reserve Bank, or is part of the United Nations and is clandestinely leading the tax-paying public into a "new world order."
Not a Person Argues that a taxpayer is not a "person" within the meaning of IRC 7701(a)(14).
Obscene, Vulgar, Harassing Submits documents or other materials indicating that non-filing is due to dissatisfaction with tax policies or taxation in general. Often, this argument is expressed with obscene, vulgar, or crude language and characters in an extremely demeaning manner.
Protest Against Government Action/Inaction Argues that refusal to file or pay is justified because they disagree with government policies or spending plans.
Sixteenth Amendment Argues the Sixteenth Amendment was not properly ratified and therefore the federal government does not have the legal authority to collect an income tax without apportionment.
Straw Man 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 (ZERO) 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 subsequent superseding notice. See also https://www.irs.gov/tax-professionals/the-truth-about-frivolous-tax-arguments-introduction on irs.gov. This category includes non-filer accounts resulting from initial check such as cross-reference Taxpayer Identification Number (TIN)s.

Note:

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

♦Province, State and Territory Abbreviations♦

Exhibit3.21.19-6Province, State and Territory Abbreviations

Australia State

State Name 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

State Name Abbreviation
Acre AC
Alagoas AL
Amapa AP
Amazonas AM
Bahia BA
Ceara CE
Distrito Federal DF
Espirito Santo ES
Goias GO
Maranhao MA
Mato Grasso 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
Sao Paulo SP
Sergipe SE
Tocantins TO
 

Canada Province/Territory

State Name 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

State Name 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

State Name 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 CV
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 nell'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

State Name 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

State Name 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

Form 3499, Informational Transmittal

This is an Image: 34014071.gif
 

Please click here for the text description of the image.

Glossary and Acronyms

Glossary

GLOSSARY DEFINITION
ACTION CODES Numeric codes edited in the bottom center margin of a return to reject documents and identify the reason the document has been rejected.
ACTION TRAIL A notation in the lower left side margin on page 1 of a return which indicates or explains an action taken.
ALPHA CHARACTER A letter of the alphabet.
AMENDED RETURN A return that changes information submitted on a previously filed return.
ATTORNEY-IN-FACT A private attorney or other individual designated by another person pursuant to a written instrument to act on behalf of that person in the performance of any act or acts described in the written instrument (e.g., a power of attorney on Form 2848).
AUDIT CODE An alpha character edited in the right bottom margin of a return to identify a specific condition for the Examination Operation.
AUDIT CRITERIA Monetary and other information used by the computer to determine if the return should be selected for audit.
AUTOMATIC DATA PROCESSING (ADP) The handling and processing of data by mechanical and/or electronic equipment.
BATCH A group of blocks of documents. A batch cannot contain more than 20 blocks.
BLOCK A group of up to 100 documents with consecutive DLNs containing the same block number (digits 9 through 11 of the DLN). (A block cannot contain more than 100 documents since the documents are numbered from 00 to 99.)
BUSINESS MASTER FILE (BMF) A magnetic tape file containing information about taxpayers filing business returns and related documents.
CALENDAR YEAR A tax year that begins January 1 and ends on December 31.
CAPTION AREA The area on a return which includes the taxpayer's TIN, name, and address.
CENTRAL AUTHORIZATION FILE (CAF) Computerized system of records which houses authorization information from Powers of Attorney (POAs), Tax Information Authorizations (TIAs) and state tax returns. The CAF system contains two types of records:
  1. Taxpayer records

  2. Representative records

CHECK DIGITS Two alpha characters used to identify the tax account.
CODING Placing symbols that have specific meanings on returns. These codes direct the computer to perform certain programmed functions.
COMPUTER CONDITION CODE (CCC) A single alpha or numeric character edited on a return which either identifies a special condition or directs the computer to take a specific programmed action. CCCs are posted to the Master File.
CORRESPONDENCE ACTION SHEETS (CAS) Forms used to request information from the taxpayer. Some are mailed to the taxpayer with the return; others generate a letter.
CURRENT YEAR RETURN A return with tax period end date within the last 12 months. For example, for processing in 2018, a Current Year Return is a return filed for Tax Year 2017.
DATA All information reported or coded on forms, schedules, and attachments.
DECEDENT RETURN A return filed for a deceased taxpayer.
DELINQUENT RETURN A return filed after the due date without an approved extension.
DOCUMENT Written information, (e.g., forms, schedules and attachments).
DOCUMENT LOCATOR NUMBER (DLN) A fourteen-digit number assigned to every return and document input through the Automatic Data Processing (ADP) system.
DUMMYING The act of transferring information provided by the taxpayer onto a required transcribed form/schedule.
EDITING Preparing returns and attachments for data entry or other transcription processes by correcting entries and entering edit marks.
EMPLOYER IDENTIFICATION NUMBER (EIN) A nine-digit number that identifies the account of a business taxpayer on the Business Master File.
ENTRY Any type of mark entered by, or edited for, the taxpayer.
ERROR RESOLUTION SYSTEM (ERS) A system for the examination and correction of returns rejected due to taxpayer and processing errors.
FIDUCIARY RETURN A return signed by someone other than the taxpayer which is accepted by the IRS due to the legal relationship between the taxpayer and the person signing the return.
FISCAL YEAR A tax year which ends on a date other than December 31.
FORM An IRS document identified by a number (e.g., Form 1040).
FRIVOLOUS FILER/NON-FILER Filers and non-filers who use certain types of tax avoidance arguments which are not supported by law.
HARDSHIP An indication of severe consequences for a taxpayer caused by the normal application of IRS regulations and procedures. Although a determination of hardship is highly subjective, the work leader must be consulted if a particular situation may be considered for referral to the Taxpayer Advocate Service (TAS).
INDIVIDUAL MASTER FILE (IMF) A magnetic tape file containing information about taxpayers filing individual income tax returns and related documents.
INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER (ITIN) A unique nine-digit number assigned by the IRS to individuals who must file a U.S. tax return or are listed as a spouse or a dependent and who do not have and cannot obtain a valid Social Security Number. Taxpayers obtain an ITIN by filing a Form W-7.
INTEGRATED DATA RETRIEVAL SYSTEM (IDRS) A system that enables employees in the area/territory offices and the campuses to have visual access to certain computer-based information in taxpayer accounts.
INTEGRATED SUBMISSION AND REMITTANCE PROCESSING SYSTEM (ISRP) A computerized system which will convert paper tax and information documents and remittances received by IRS into perfected electronic records of taxpayer data.
INTERNATIONAL RETURN A return on which income is excluded or not reported because of revenues from, payments to, or residence in a foreign country.
JULIAN DATE A calendar date expressed as the number of days since the beginning of the year. For example, February 1 is Julian Date 032.
JURAT The perjury statement required in the signature area of a tax return, form, or schedule.
MASTER FILE A magnetic tape record which contains taxpayer accounts.
MISBLOCKED RETURN A Form 1040, Form 1040A or Form 1040EZ, found in the wrong type of block or batch. For example, a Form 1040A found in a batch of Forms 1040.
MISFILED RETURN A Form 1040, Form 1040A or Form 1040EZ, filed when a BMF form should have been filed instead.
NAME CONTROL The first four characters of the taxpayer's surname. Also used for dependents, qualifying children, child care providers, etc.
NON-RESIDENT ALIEN (NRA) An alien individual (not a U.S. citizen), who does not meet either the green card test or the substantial presence test for the calendar year.
NUMERIC CHARACTER A number or numeral between 0 and 9, inclusive.
PERFECTING Making returns acceptable for data entry through editing procedures.
PIPELINE The areas in the IRS Submission Processing Campus that process a return from the time it is received until the data from the return is entered to an account in the IRS' main computer. These areas include Receipt and Control, Code & Edit, Data Conversion, Error Resolution, Rejects, and Unpostables.
POWER OF ATTORNEY (POA) A form authorizing a representative to perform certain acts on the taxpayer's behalf.
PAID PREPARER IDENTIFICATION NUMBER (PTIN) Paid preparer tax identification number.
PRIMARY TAXPAYER The taxpayer who is listed first on the name line caption of a joint return, regardless of whether that taxpayer is male or female.
PRIMARY TAXPAYER IDENTIFICATION NUMBER (P-TIN) The TIN associated with the taxpayer who is listed first on the name line of the caption.
PRIOR YEAR RETURN A return for a tax period prior to the current tax year.
PROCESSABLE RETURN A return which meets all the requirements for ISRP input.
RECEIVED DATE Date a return was received by the IRS. If the date is unknown and a Received Date is required, there is a prescribed formula for determining the date to edit as the Received Date. (Required on Amended, Fiscal Year, Short Year, Prior Year, and Delinquent Returns.)
RE-INPUT DOCUMENT A document that did not post to the Master File when originally entered and is now being entered again with a Form 3893, Re-Entry Document Control.
RETURN A legal document used by taxpayers to report income, deductions, and tax liability.
RETURN DUE DATE The date in which the return is due to the Internal Revenue Service.
RETURN PROCESSING CODE (RPC) A single character edited on a return to direct the computer to take specific actions in processing the return. This code does not post to the Master File.
SCHEDULE An IRS document identified by alpha characters or numbers (e.g., Schedule B, Schedule 8812).
SECONDARY TAXPAYER The taxpayer who is listed second on the name line caption of a joint return, regardless of whether that taxpayer is male or female.
SECONDARY TAXPAYER IDENTIFICATION NUMBER (S-TIN) The TIN associated with the taxpayer whose name appears second on a joint return.
SIGNIFICANT ENTRY Any positive or negative number or dollar amount other than zero.
SOCIAL SECURITY NUMBER (SSN) A nine-digit number identifying the account of an individual on the Individual Master File.
STATUTE RETURN A return filed for a Tax Period more than three years prior to the current Tax Period.
SUFFIX Information added at the end of a word, phrase, or series of numbers. For instance, a title may be edited as a suffix to a name as in James Canary, Exec.
TAX EXAMINER (TE) STAMP A rubber stamp containing a unique identifying number of the Code & Edit tax examiner working the return.
TAX PERIOD The time covered by a particular return represented by the year and month in which the period ends. For example, "1612" stands for the tax year ending December 31, 2016.
TAXPAYER ADVOCATE SERVICE (TAS) An independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should.
TAXPAYER IDENTIFICATION NUMBER (TIN) A nine-digit number which identifies the account of an individual or business taxpayer. The TIN may be a Social Security Number (SSN), an Individual Taxpayer Identification Number (ITIN), Adoption Taxpayer Identification Number (ATIN) or an Employer Identification (EIN).
THIRD PARTY DESIGNEE Person given permission by the taxpayer to discuss their current year return processing issues with the IRS.