3.22.19 Foreign Trust System

Manual Transmittal

November 09, 2017

Purpose

(1) This transmits revised IRM 3.22.19, International Error Resolution - Foreign Trust System.

Material Changes

(1) IRM 3.22.19 Figures, Exhibits, References and dates revised throughout.

(2) IRM 3.22.19 Editorial and grammatical changes made throughout.

(3) IRM 3.22.19.1 Added information on Program Scope and Objectives.

(4) IRM 3.22.19.1.1 Moved information on processing Form 3520 from IRM 3.22.19.1 to Form 3520 Background.

(5) IRM 3.22.19.1.1.1 Removed subsection on Fideicomiso (aka Foreign Trust).

(6) IRM 3.22.19.1.2 Moved information on processing Form 3520-A from IRM 3.22.19.1 to Form 3520-A Background.

(7) IRM 3.22.19.1.3 Added internal control information on Authority.

(8) IRM 3.22.19.1.4 Added internal control information on Responsibilities.

(9) IRM 3.22.19.1.5 Added internal control information on Program Objectives and Review.

(10) IRM 3.22.19.1.6 Added internal control information on Terms, Definitions and Acronyms.

(11) IRM 3.22.19.1.7 Added internal control information on Related Resources.

(12) IRM 3.22.19.1.7 Caution - Updated IRM reference to IRM 11.3.2.7.1 from 11.3.2.6.1.

(13) IRM 3.22.19.1.8 Revised IRS Employee Contacts information for consistency.

(14) IRM 3.22.19.1.9 Revised Taxpayer Advocate Service instructions for consistency.

(15) IRM 3.22.19.1.10 Defined acronyms and added the title of Form 4227.

(16) IRM 3.22.19.1.11 Corrected IRM reference and title for IRM deviation.

(17) IRM 3.22.19.1.12 Reworded instructions in Caution to new paragraphs (4) and (5).

(18) IRM 3.22.19.1.14(1) Updated the valid ranges for the fourth and fifth digits of ITINs.

(19) IRM 3.22.19.1.15.1 Removed obsolete information on CADE and CADE 2 for consistency.

(20) IRM 3.22.19.1.17 Revised correspondence procedures.

(21) IRM 3.22.19.1.17(4) Added instructions to correspond with U.S. taxpayer, and added instructions if Form 3520-A, page 3, Line 6 is blank.

(22) IRM 3.22.19.1.17.1 Revised correspondence procedures, and removed duplicate verbiage for Letter 3653C fill-in.

(23) IRM 3.22.19.1.18(1) Revised CCC R instructions.

(24) IRM 3.22.19.1.19 Corrected the reference to field breaker information.

(25) IRM 3.22.19.1.19.8(2) Table Changed "Processing" to "Program" .

(26) IRM 3.22.19.1.22.2(3) Revised procedures for incomplete CIS returns.

(27) IRM 3.22.19.1.24.2 Clarified Delinquent Returns instructions and removed (7) as redundant.

(28) IRM 3.22.19.1.24.8 Updated Frivolous Returns instructions.

(29) IRM 3.22.19.1.25 Removed official use only restriction and added other CI Referral Criteria.

(30) IRM 3.22.19.1.26 Removed official use only restriction on information regarding Examination.

(31) IRM 3.22.19.6.1 Corrected Entity Underprint Code (EUC) from Field 01-Y to Field 01-Z , and removed correspondence instructions.

(32) IRM 3.22.19.6.1(3) Changed the example of a name control containing a slash.

(33) IRM 3.22.19.6.1.1(2) Corrected Field 01-Y to Field 01-Z for EUC.

(34) IRM 3.22.19.6.2(3) Corrected Field 01-Y to Field 01-Z for EUC.

(35) IRM 3.22.19.6.2(3) Chart - Corrected the first THEN box (2) from Field 01-Y to Field 01-Z.

(36) IRM 3.22.19.6.2(3) Removed reference to Document 7475 as not applicable.

(37) IRM 3.22.19.6.4(5) Removed correspondence instruction, and corrected Field 01-Y to Field 01-Z for EUC.

(38) IRM 3.22.19.6.7(3) Revised instructions for Computer Condition Codes.

(39) IRM 3.22.19.6.7(3) Changed information from Philadelphia to Ogden Accounts Management.

(40) IRM 3.22.19.6.8(4) Revised instructions on correcting Field 01-H, Correspondence Received Date.

(41) IRM 3.22.19.6.8(5) Removed correspondence instruction note.

(42) IRM 3.22.19.6.11(3) Revised correspondence instructions.

(43) IRM 3.22.19.6.12(3) Revised correspondence instructions.

(44) IRM 3.22.19.6.13(3) Revised correspondence instructions.

(45) IRM 3.22.19.6.14(3) Revised correspondence instructions.

(46) IRM 3.22.19.6.16(4) Added information to determine the campus of filer’s return based on filer’s address.

(47) IRM 3.22.19.6.17(2) Updated reference to correction procedures for Field 01-B.

(48) IRM 3.22.19.6.20(6) Corrected field designators.

(49) IRM 3.22.19.6.20(6) Revised examples of addresses on returns and error register.

(50) IRM 3.22.19.6.21 Corrected field designators.

(51) IRM 3.22.19.6.23(5) Added reference to Figure 3.22.19-6 for U.S. Possession codes.

(52) IRM 3.22.19.6.24 Corrected field designators from Field 01-U to 01-W and added link to Document 7475.

(53) IRM 3.22.19.6.24(6) Corrected field designators.

(54) IRM 3.22.19.6.25(1) Corrected field designator from Field 01-V to 01-W.

(55) IRM 3.22.19.10(4) Removed correspondence instruction note.

(56) IRM 3.22.19.10.20(1) Corrected Field 04-T to Field 05-T.

(57) IRM 3.22.19.11.1(4) Removed correspondence instruction note.

(58) IRM 3.22.19.11.2(5) Removed correspondence instruction note.

(59) IRM 3.22.19.12(5) Removed correspondence instruction note.

(60) IRM 3.22.19.13(3) Removed correspondence instruction note.

(61) IRM 3.22.19.13.19(3) Corrected instructions to indicate that Field 08-S should be used when Line 17 has more than one entry, instead of more than three entries.

(62) IRM 3.22.19.15.9(3) Removed correspondence instruction note.

(63) IRM 3.22.19.17.4(4) Revised correspondence instruction and removed note.

(64) IRM 3.22.19.17.13(1) Corrected field designator from Field 14-F to Field 14-M.

(65) IRM 3.22.19.22.11 Revised title by removing dollar amount.

(66) IRM 3.22.19.23.19(2) Deleted note as obsolete.

(67) IRM 3.22.19.23.22(1) - (2) Corrected from Line 56 to Line 55.

(68) IRM 3.22.19.25.1(5) Removed correspondence instruction note.

(69) IRM 3.22.19.25.1(5) Added Action Codes 211 for domestic correspondence and Action Codes 225 and 226 for signature only correspondence.

(70) IRM 3.22.19.25.3 Revised information on Workable Suspense Inventory Report.

(71) IRM 3.22.19.25.6.1(1) Corrected the order of references for Exam prepared and Exam secured returns.

(72) IRM 3.22.19.26 Clarified the use of Exhibit 3.22.19-4 when processing Form 3520-A.

(73) IRM 3.22.19.26.1 Updated information on Form 3520-A transcribed fields are in Sections 01 through 10.

(74) IRM 3.22.19.26.2.1 Revised instructions on Form 3520-A Taxpayer Identification Numbers.

(75) IRM 3.22.19.26.2.2 Revised instructions to correct Field 02ST, and removed Figure 3.22.19-13.

(76) IRM 3.22.19.27(1) Added Field 01CRD to Section 01 table.

(77) IRM 3.22.19.27.1(5) Revised examples of name controls and name lines, and updated the reference to Figure 3.22.19-13.

(78) IRM 3.22.19.27.2(5) Added instructions to suspend to Entity Control if Field 01EIN cannot be determined.

(79) IRM 3.22.19.27.2(5) Removed Figure 3.22.19-15.

(80) IRM 3.22.19.27.3(7) Added instruction if final return is not indicated with future tax period.

(81) IRM 3.22.19.27.3(9) Revised instructions for voiding returns with tax period prior to 200012.

(82) IRM 3.22.19.27.4(4) Updated early filed return example.

(83) IRM 3.22.19.27.6(2) Revised instructions for CCC C, added CCC N, and removed instructions to enter CCC 9 for foreign address on Form 3520-A.

(84) IRM 3.22.19.27.6(2) Removed the statement that Form 3520-A must be cleared by Statute.

(85) IRM 3.22.19.27.6.1 Revised instructions to restrict use of CCC C.

(86) IRM 3.22.19.27.6.7 Removed instructions to enter Action Code 310 and added instructions for CCC W.

(87) IRM 3.22.19.27.6.10 Removed instructions to enter CCC 9 for foreign address on Form 3520-A.

(88) IRM 3.22.19.28.4(1) Added correction procedures to the reminder.

(89) IRM 3.22.19.28.5(2) Clarified information on correcting the state field.

(90) IRM 3.22.19.28.7(4) Added a reference to Figure 3.22.19-6 for a list of U.S. Possessions.

(91) IRM 3.22.19.29.6(3) Removed note as not applicable to Field 03L4B.

(92) IRM 3.22.19.29.7(2) Removed note as not applicable to Field 034BT.

(93) IRM 3.22.19.29.9(3) Revised instructions to correct Field 03L6.

(94) IRM 3.22.19.31.1(3) Deleted instructions to refer to the figure, and removed Figure 3.22.19-17a and Figure 3.22.19-17b.

(95) IRM 3.22.19.31.2(5) and (6) Revised correspondence instruction and removed note.

(96) IRM 3.22.19.31.2(5) Added Action Code 211 for domestic correspondence.

(97) IRM 3.22.19.33 Revised field titles in Section 07 to reflect "Owner 1" since data from the first five Grantor Trust Owner Statements will be transcribed, when multiple Page 3 statements are attached to Form 3520-A.

(98) IRM 3.22.19.33.1(4) Removed the second and fourth rows of the table, and revised the instructions for correcting the tax period on page 3.

(99) IRM 3.22.19.33.4(1) Changed "must" to "may" , and revised TIN Type instructions.

(100) IRM 3.22.19.33.11 Updated instructions to refer to "Owner 1" statement, and to determine the campus where the owner’s return was filed.

(101) IRM 3.22.19.34 Added new Section 08 with information regarding the second and third Grantor Trust Owner Statements, referred to as "Owner 2" and "Owner 3" , if attached to Form 3520-A.

(102) IRM 3.22.19.35 Added new Section 09 with information regarding the fourth and fifth Grantor Trust Owner Statements, referred to as "Owner 4" and "Owner 5" , if attached to Form 3520-A.

(103) IRM 3.22.19.35.1(3) Removed instructions to enter Action Code 310 and removed suspense procedures.

(104) IRM 3.22.19.35.2(3) Removed correspondence note in table.

(105) IRM 3.22.19.35.3(3) Removed correspondence note in table.

(106) IRM 3.22.19.35.5(3) Added Action Code 211 for domestic correspondence to the last row of the table.

(107) IRM 3.22.19.35.13(3) Revised instructions to eliminate use of CCC 9 for foreign address on Form 3520-A.

(108) IRM 3.22.19.36 Moved Section 08 subsection to new Section 10 for beneficiary, and updated all field designators in the subsection.

(109) IRM 3.22.19.37.1(3) Revised CCC W instructions in Error Code 001.

(110) IRM 3.22.19.37.2(3) Removed Figure 3.22.19-18a and Figure 3.22.19-18b.

(111) IRM 3.22.19.37.4(4) Corrected reference for received date instructions.

(112) IRM 3.22.19.37.5(3) - (4) Removed instructions to delete the received date.

(113) IRM 3.22.19.37.6(1) Added Section 09 and Section 10 to displayed fields in Error Code 010.

(114) IRM 3.22.19.37.7(1) Added field designators for address fields of Owner 1 - Owner 5.

(115) IRM 3.22.19.37.8(1) Added field designators for Field 01EIN, 02CON, and address fields of Owner 1 - Owner 5.

(116) IRM 3.22.19.37.9 Added field designators and correction procedures for address fields of Owner 1 - Owner 5, and removed Figure 3.22.19-19.

(117) IRM 3.22.19.37.14(3) Revised instructions in Error Code 996 to identify the correct field for TIN.

(118) IRM 3.22.19.37.15 Added field designators for name and TIN fields of Owner 1 - Owner 5.

(119) IRM 3.22.19.37.16(3) Removed Figure 3.22.19-20a and Figure 3.22.19-20b.

(120) Exhibit 3.22.19-2 Corrected the spelling of Puerto Rico cities (Cerro Gordo, and Toa Baja).

(121) Exhibit 3.22.19-3 Corrected the spelling of Brazil state (Espirito Santo), Cuba province (Granma), Italy provinces (Belluno, Benevento, Bolzano Bozen, Caltanissetta, Genoa, Milan, and Vicenza), and the Netherlands province (Limburg).

(122) Exhibit 3.22.19-5 Added Action Code 225 for domestic correspondence for signature only.

(123) Exhibit 3.22.19-6 Added Error Code 015 to the Error Code listing for Form 3520-A.

(124) Exhibit 3.22.19-7 Removed official use only restriction from the table title and from most of the table’s contents.

(125) Exhibit 3.22.19-9 Added a glossary of definitions of terms and acronyms used in processing.

Effect on Other Documents

IRM 3.22.19 dated November 15, 2016 (effective 01-01-2017) is superseded. This IRM also incorporates the following Interim Procedural Updates (IPU): IPU 17U0715 issued 04-20-2017, IPU 17U1180 issued 07-24-2017, and IPU 17U1342 issued 09-18-2017.

Audience

Wage and Investment Error Resolution employees of OSPC Only

Effective Date

(01-01-2018)

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

Program Scope and Objectives

  1. Purpose: The Error Resolution System (ERS) is a means to resolve errors made by taxpayers and those made during campus processing.

  2. Audience: These procedures apply to IRS employees with responsibility for correcting the information returns in ERS including Supervisory Tax Examining Assistant, Lead Tax Examining Technicians, and Tax Examining Technicians, primarily the International team at the Ogden Submission Processing Center (OSPC).

  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: The ERS program objective is to provide timely and accurate correction of records that are in ERS error inventory. This IRM provides error resolution instructions for correcting 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 on the Error Registers and the Error Resolution System.

Form 3520 Background

  1. Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, is the annual return used to report:

    • Transactions with foreign trusts (i.e., transfers to or distributions from foreign trust)

    • Ownership of a foreign trust by a U.S. person and/or

    • Gifts or bequests received from foreign persons

  2. Form 3520 is required to be filed by a "U.S. Person." The term "U.S. Person" includes not only individuals (U.S. citizens or resident aliens), as the term implies, but also corporations, partnerships, trusts, estates, foundations, etc.

  3. Form 3520 is generally required when a U.S. Person:

    • Created a foreign trust during the tax year.

    • Transferred money or other property to a foreign trust during the tax year.

    • Held a qualified obligation (loan) with a foreign trust which was issued after August 20, 1996.

    • Was a U.S. owner of all or part of a foreign trust during the tax year.

    • Received a distribution from a foreign trust during the tax year.

    • Borrowed money from a foreign trust during the tax year.

    • Received the uncompensated use of trust property from a foreign trust after March 18, 2010.

    • Received a gift or inheritance from a foreign person after August 20, 1996.

  4. Form 3520 is filed and processed at the OSPC.

  5. There is no separate extension request for Form 3520-A. An extension is automatically granted for Form 3520 when the taxpayer files an extension for the income tax return.

  6. Any Form 3520 filed for tax periods ending before 199812 will be forwarded to Document Retention/Files. Attach Form 4227 to the front of the return with the notation "Tax Year prior to 199812" .

  7. Form 3520 is processed under:

    • File Location Code (FLC) 60 (Ogden Submission Processing Campus (OSPC))

    • Tax Class 3

    • Document (Doc.) Code 83

    • Blocking Series is 000-999

    • Master File Tax (MFT) Code 68

    • Program Code 12310

Form 3520-A Background

  1. Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner is the annual information return of a 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 operation

    • Other relevant information

  2. In addition to filing Form 3520, the U.S. owner is responsible for ensuring that the trust files a Form 3520-A to the IRS and provides certain relevant information annually to the U.S. Owners(s) if any, and U.S. beneficiaries of the trust who receive a distribution in that year. Additionally, the U.S. owner is responsible for filing a substitute Form 3520-A if the foreign trust does not file Form 3520-A. A substitute Form 3520-A would be attached to the U.S. Owner's Form 3520.

  3. Form 3520-A is filed and processed at the OSPC.

  4. The due date for Form 3520-A is the 15th day of the third month following the end of the foreign trust's tax year. The return can be a Fiscal or Calendar year return.

  5. Unlike the Form 3520, there is a separate extension request for Form 3520-A. Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, must be filed to request an extension of time to file for Form 3520-A.

  6. Any tax arising from an inclusion of an item of income reported on Form 3520-A must be paid with the tax return of the owner (e.g., Form 1040, Form 1120, Form 1041, Form 1065, etc.).

  7. Form 3520-A is processed under:

    • File Location Code 60 (OSPC)

    • Tax Class 3

    • Doc. Code 82

    • Blocking Series 000-999

    • MFT Code 42

    • Program Code 12320

Authority

  1. IRC 6213(b) provides the authority for identification and resolution of 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 Objectives and Review

  1. Program Goals: Correct all errors that are identified.

  2. Program Reports: The Monitoring Section under Submission Processing Program Management/Process Assurance monitors the ERS 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 in this IRM are reviewed annually to ensure accuracy ad promote consistent tax administration.

Terms/Definitions/Acronyms

  1. A glossary of terms and acronyms can be found in Exhibit 3.22.19-9.

Related Resources

  1. The following is a list of resources used by ERS tax examiners to complete the work:

    • Submission Processing Design Center (SPDC) Job Aid 6807-001

    • Servicewide Electronic Research Program (SERP)

    • Integrated Data Retrieval System (IDRS)

    • Integrated Automation Technologies (IAT)

♦IRS Employee Contacts - Restructuring and Reform Act of 1998, Section 3705(a)♦

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

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

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

    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.

    :

♦Taxpayer Advocate Service (TAS)♦

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

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

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

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

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

♦TAS Service Level Agreements (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 Investigations (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.

♦Business Master File (BMF) Identification (ID) Theft♦

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

    1. SSPND “360” to route the return to Planning & Analysis (P&A).

    2. Attach Form 4227, Intra-SC Reject or Routing Slip, (or other appropriate routing slip) with the notation “ID THEFT”.

    3. Provide the entire case to your senior/lead.

    Your senior/lead will expedite the case to the P&A staff for referral to one of the SP BMF ID Theft liaisons. The taxpayer must indicate that they are a victim of “ID Theft”; do not send cases that are subject to Criminal Investigation (CI), Examination (Exam), or Fraud review.

♦IRM Deviation Procedures♦

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

♦Use of Fax for Taxpayer Submissions♦

  1. Tax return information can be received via fax as part of return perfection even if a taxpayer signature is required. In circumstances where contact with the taxpayer has been made and documented, faxed signatures are acceptable. For more information about accepting signed taxpayer documents by fax, see the most recent revision of the IRS Policy for Use of Fax, available at http://irweb.irs.gov/AboutIRS/co/dese/memo/48254.aspx.

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

  3. ERS examiners will indicate the fax paragraph on the approved Correspondence Action Sheet to advise taxpayers of the option to fax their response.

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

    • IRM 21.1.3.2.3, Required Taxpayer Authentication

    • IRM 21.1.3.2.4, Additional Taxpayer Authentication

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

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

    • IRM 11.3.1.11, Facsimile Transmission of Tax Information

General Disclosure Guidelines

  1. IRC 6103 establishes the taxpayer's right to privacy of tax information. You must be sure that you provide correct information to the correct taxpayer or authorized representative. Check IDRS Command Code (CC) CFINK for a power of attorney (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 Introduction to Disclosure through IRM 11.3.40,Disclosures Involving Trust Fund Recovery Penalty Assessments.

ITIN - Individual Taxpayer Identification Number

  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 the fourth and fifth digits are within the following ranges: 50-65, 70-88, 90-92, and 94-99. The ranges are listed below.

    • 9XX-50-XXXX through 9XX-65-XXXX

    • 9XX-70-XXXX through 9XX-88-XXXX

    • 9XX-90-XXXX through 9XX-92-XXXX

    • 9XX-94-XXXX through 9XX-99-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 any 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) Error Resolution System (ERS) processing IRMs.

  2. Topics for BMF Consistency have been identified and developed as a coordinated effort between Cincinnati, Ogden and Paper Processing Branch BMF Code and Edit/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.

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

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

  3. The BMF campus cycles are:

    1. Campus Cycle: Thursday - Wednesday

    2. Master File Processing: Friday - Thursday

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

    4. Unpostables: New available Tuesday; Closing Tuesday

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

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

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

    Note:

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

Error Register

  1. A listing of documents on which the transcribed data failed one or more of the consistency, math verification, or validity tests in the computer program.

  2. The Error Register is made up of Sections and Fields that are directly or indirectly related to the Data Sections and items transcribed and input to the computer.

Loop Register

  1. An error or reject record that has had a correction record input but still contains an invalid or math error condition that requires correction.

Section Error

  1. A portion or segment of a record containing data fields related to a specific schedule or portion of the source document.

  2. Each Section is identified by a two digit numeric section number.

Field Error

  1. A field is a specific item of information transcribed from a form, schedule, or other document.

  2. A section on the Error Register contains a certain number of fields which always appear, whether the field contains data or is blank.

  3. Each field is indicated by an Alpha Indicator (letter) which is located at the beginning of each field.

  4. A field is either FIXED (no field breaker) or VARIABLE (ends with a field breaker). See IRM 3.22.19.1.20 for more information on field breakers.

Field Breaker

  1. A field breaker is a special symbol which indicates the end of a variable field.

    Note:

    A variable field is any field that ends with a field breaker.

  2. The most common field breaker is a plus sign (+), although some fields can end with a minus sign (-), indicating a loss or a refund.

  3. The field breaker will always appear at the end of the field whether it contains data or not.

  4. When changing the data in a field on the Error Register and you enter a positive field breaker, enter a comma (,) and not the plus sign (+).

  5. When changing the data in a field on the Error Register and you enter a negative field breaker, enter a pound (#) sign and not the minus sign (-).

  6. Do not line through a field breaker unless you are changing it to a different one.

    Example:

    You would not line through a plus sign and enter a comma above it; however, you would only line through the data in the field and leave the field breaker alone.

  7. When a section is added to the error register, only the fields which contain data are actually entered onto the register. The field breakers used would be the comma and/or pound sign, as required, but not the plus or minus sign.

  8. A few fields on the error register do not end with a field breaker, or any other indication of the end of the field. These are known as "Fixed" fields. Information for these fields will be found in the IRM under each specific field explanation.

Error Register Action Codes

  1. Action codes are used to indicate that specific information is missing or that the record is to be rejected from processing. The Action Code must contain sufficient detail to indicate if correspondence is to be sent to the taxpayer or the specific in-house research or action required.

  2. Only one action code may be entered in any one section of the Error Register to correct that section. The Action Codes valid for this program are, 2, 3, 4, 5, 6, 7, and 9.

    • If two incompatible action codes are required, the return must "loop" .

    • The definitions and rules of usage for the following action codes apply to the Error Register Correction Procedures.

    Action Code # Action Purpose Location May use more than one code
    2 Rejects use only Used with Reject Designators D, R or N To the left of Section 01 No
    3 To reject a record from the Error Resolution System To reject a document that is unprocessable To the left of Section 01 No
    4 To delete a section from the error register Whenever a section is not needed To the left of the section being deleted Yes with AC
    5 To add a section to the Error Register When data is present for a section but has not been entered To the left of the section being added Yes with AC
    6 To correct data fields with a section When data is missing or incorrect in a field To the left of the section being corrected Yes with AC
    7 To clear the Error Register Whenever there is a validity check and no correction is necessary To the left of Section 01 No
    9 Rejects use only To put a Loop Register into Re-reject (RAW) Status To the left of Section 01 on a reject loop No
Action Code "2"
  1. Action Code "2" is used only in the Rejects unit.

    Reminder:

    No other action code can be with Action Code "2" .

  2. Enter to the left of Section "01" .

  3. Action Code "2" must be used with reject designator;

    • D – Delete (voids) record

    • N – Re-number

    • R – Re-input (with Form 3893)

      Note:

      If it is necessary to re-number a return on LOOP, it will be necessary to use Action Code "9" to bring the record back to RAW (reject) status, then have it re-numbered.

  4. "D" and "R" can be used on Rejects Loop Register.

Action Code "3"
  1. Action Code "3" to reject a document that is unprocessable or Non-ADP (Automated Data Processing).

    Reminder:

    When using Action Code "3" , do not use any other Action Code.

  2. Enter to the left of Section "01."

  3. This code can be used only by the Service Center Replacement System (SCRS) unit to send a return to the Rejects unit. It cannot be used on the Rejects Register.

Action Code "4"
  1. Use Action Code "4" to delete any section of a record when the section is not required.

    Example:

    DO NOT USE Action Code "4" in Section "01" of a record.

  2. Enter to the left of the section that needs to be deleted.

  3. Action Codes "4" , "5" , and "6" may be used on the same Error Register, but only in different sections.

  4. If a section appears on the Error Register but contains no significant data:

    • It is not necessary to delete the section, unless entering Computer Condition Code (CCC) "G."

    • The section will be automatically deleted when the record posts.

      Note:

      Do not use Action Code "4" to delete a (computer-generated) section with all fields blank, which shows an asterisk (*) before the section number. If no data is to be added to a field in this section, ignore it. If no other correction is required to the record, use Action Code "7" to clear it. Using action code "4" with such a section will result in an invalid correction attempt (AA) on the Loop.

Action Code "5"
  1. Action Code "5" is used to:

    1. Add a missing section to the record.

    2. Therefore, use it to add a missing section that is required to be present, but which has not printed on the Error Register.

      Exception:

      DO NOT USE Action Code "5" in Section "01" of a record

  2. Enter to the left of a section that needs to be added.

  3. When adding a section,

    1. Enter only the fields which have significant data.

    2. Enter the Alpha Field Designation and the appropriate field breakers for each field entered (e.g., "5 06A1000," Action Code "5" , Section 06, field A, positive amount 1000).

  4. Action Codes "4" , "5" , and "6" may be used on the same Error Register, but only in different sections.

Action Code "6"
  1. Action Code "6" is used to indicate that at least one field in that section requires correction.

  2. This code is entered to the left of the section number.

  3. There is no limit to the number of sections which can accept Action Code "6" on an error record, or to the number of fields in a section that can be corrected.

    Note:

    Correct as many fields as possible with Action Code "6" on each correction run.

  4. When Action Code "6" is used on the Error Register, at least one field in the section must be corrected (if the "6" is found not to be needed, erase it from the register).

    1. Line through the erroneous data following the field designator.

    2. Enter the correct data above the lined-through data, changing the field breaker only if it is to be changed also (if not do not line through the field breaker).

    3. Because a Fixed field has no field breaker, unused spaces must be accounted for. This will affect only the name control (other fixed fields either must be present in full or cannot be corrected). See the instructions under the fixed fields for more information.

  5. If any transcription entry is wrong, illegible, on the wrong line, or on an attachment,

    1. Enter the information on the applicable line on the return (or arrow up or down to the correct line, if possible).

    2. Enter the information into the correct field on the Error Register.

      Note:

      If the section containing the field is already on the register, use Action Code "6" to enter the data into the field. If the section containing the required field is not on the register, use Action Code "5" to add the section to the record and enter the data into the required field. Action Codes "5" and "6" cannot be used for the same section on the same correction run.

  6. Action Codes "4" , "5" , and "6" can all be used on the same record, but only in different sections.

Action Code "7"
  1. Action Code "7" is used to indicate that the data on the Error Register is correct and that no action is necessary.

    Reminder:

    When Action Code "7" is used, no other Action Code is valid.

  2. Enter to the left of Section "01."

  3. The most common use of Action Code "7" is on Loop when there is the "AA" (invalid correction attempt) on the top line of the error record. Not every invalid correction attempt made by Transcription will appear as an error on the Error Register. When the "AA" appears, examine the fields in the record and if no error is seen, use Action Code "7."

Action Code "9"
  1. Action Code "9" is used only on Loop Reject Registers. It is not valid on RAW rejects registers or on SCRS Error Registers at all.

    Reminder:

    No other action code can be used with Action Code "9" .

  2. This code is entered to the left of Section 01.

  3. Action Code "9" is used to bring a Loop Reject record back to the RAW (called re-reject) status. This is required because some operations cannot be done on a Loop Register, such as having a document re-numbered, sending a document to another area in the campus or corresponding to a taxpayer.

    Note:

    It is possible to void (2-D) or re-input (2-R and Form 3893) on Loop. The Action Code "9" is not needed in these circumstances.

General Correspondence Procedures

  1. Issue correspondence to resolve any conditions that cause the return to be unprocessable, per IRM instructions.

    Exception:

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

    Note:

    To provide the taxpayer with a message that we have received prior correspondence and everything is well with their account, the following verbiage has been approved as a fill-in on Letter 3653C, (mark line 37): We are pleased to tell you that your information return(s) has been processed. No action is needed on your part. If you have any questions, please call Customer Service at 267-941-1000 between the hours of 6:00 a.m. and 11:00 p.m. EDT. This is not a toll-free number.

  2. All taxpayer correspondence is governed by the guidelines in IRM 21.3.3, Incoming and Outgoing Correspondence/Letters. Correspondence includes all written communication from a taxpayer or their representative, excluding tax returns, whether solicited or unsolicited, and includes:

    • Responses to IRS' requests for information or data

    • Requests for information, including that which may accompany tax returns

    • Annotated notice responses

    • Other correspondence providing additional information or disputing a notice

  3. In all instances where you are instructed to correspond for missing information on Form 3520 or Form 3520-A, completely examine the return to ensure that all missing information is requested in the same letter. Initiate correspondence one time only.

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

    Exception:

    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 Line 37, with the following narrative as a fill-in:
    Information in this letter pertains to (Name of Foreign Trust). (Insert the foreign trust name from Form 3520-A, page 1, Line 1a).
    If the U.S. Owner, U.S. Agent and Trustee are all blank, the team’s workleader should refer the case to the P&A Analyst who will contact the Headquarters Analyst for instructions.

  5. Form 3520 only: Always correspond using Letter 3653C CAS, mark Line 1, on a blank Form 3520 return where the taxpayer states they have no activity to report.

    Note:

    Beginning with 1997, Form 3520 and its instructions required U.S. Owners of a foreign trust to complete Part II of Form 3520 and report their ownership of the foreign trust 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, now codifies this requirement and confirms that a U.S. owner of a foreign trust must file a Form 3520 every year. Reminder: Inform the U.S. Owner that they must complete the 2nd checkbox on page 1 of Form 3520, and Part II of the form.

Processing Taxpayer Correspondence
  1. Initiate correspondence when required information is missing from a return. When a reply to correspondence is received, process the return using the information provided in the reply.

  2. Enter a Correspondence Received Date (CRD) in the right margin next to "Service Center where U.S. person’s income tax return is filed" question when a reply to correspondence is received. Enter the "CRD" date in YYYYMMDD format in Field 01-H (Form 3520) or Field 01CRD (Form 3520-A), except in the following situations:

    • The reply from the taxpayer was received before the due date of the return.

    • The correspondence was required because of an IRS processing error (e.g., a request for an attachment that was lost during processing).

    Note:

    If there is no reply to correspondence, enter CCC "3" in Field 01-G (Form 3520) or Field 01CCC (Form 3520-A).

♦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. Follow the instructions below for processing "CIS" returns:

    If... And... Then...
    The "CIS" return has a Form 13596, Reprocessing Returns attached

    Note:

    If 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 Accounts Management. Continue processing the return.

    The return is not complete (e.g., missing signature, schedules or forms)
    1. Remove the return from the batch.

    2. Void the DLN.

    3. Attach Form 4227 to the return and route to Accounts Management to secure missing information.

    Note:

    Do not correspond for missing information on "CIS" reprocessable or reinput returns.

    The "CIS" return does not have a Form 13596, Reprocessing Returns attached The return is not complete (e.g., missing signature, schedules or forms) Research for prior posting (TC 150 posted).
    1. If TC 150 is present and the information is the same, cancel the DLN and treat as classified waste.

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

Unprocessable Conditions

  1. A return must contain the following specific items before it is considered processable. If they are not present and cannot be found on the return or its attachments, then ERS will research IDRS, to locate the information to make the return processable.

    Note:

    All returns to be processed with CCC "R" until further notice.

    Note:

    If CCC "R" is missing from any rejected or held return, enter CCC R before sending to post to suppress the CP 223 notice, until further notice.

    • An Employer Identification Number (EIN), SSN, or ITIN

    • A legible name (for the Name Control)

    • A valid Tax Period (199812 and subsequent)

  2. Conditions which make a document unprocessable are:

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

    • The EIN, SSN, or ITIN contains other than nine numeric characters and cannot be perfected from information on the return or attachments.

    • The document has more than one ElN.

    • The filer has stated that they have combined information for more than one tax period or more than one type of return.

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

    • The document has been mis-blocked.

    • The return is unsigned.

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

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

Processing Attachments and Special Returns - Form 3520
  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.

    2. Before detaching, ensure that attachments contain a name, address, SSN, ITIN, or EIN and received date. Enter any missing information.

    3. Edit Action Trail(s) (e.g., 2848 DETACHED) in the lower left margin of the return.

  2. Form 3520 is:

    1. Required to be filed with the Ogden Submission Processing Campus (OSPC) after December 31, 2006.

    2. Returns erroneously filed at other locations are to be forwarded to OSPC for processing.

  3. For procedures for processing unusual Form 3520 conditions, see IRM 3.22.19.1.24 on Special Returns.

Special Returns

  1. Use the following instructions when processing special or nonstandard returns for Form 3520.

Fiscal Year Returns
  1. Form 3520 can be filed as a fiscal or calendar year return. A fiscal year return will have the dates written at the top of page 1.

  2. If the tax period ending month does not agree with the month ending on INOLE, then:

    • The tax period will underprint, or

    • The return will unpost as Unpostable Code (UPC 307).

  3. Follow instructions under Field 01-D to resolve tax period errors. See IRM 3.22.19.6.4.

Delinquent Returns
  1. A return is normally delinquent if it is not received on or before the return due date (including extensions, if an extension was filed for the taxpayer's income tax return).

  2. Accept a return as timely if received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the due date.

  3. Also accept a return as timely:

    1. If it is postmarked or mailed on the next workday when the due date falls on a Saturday, Sunday, or legal holiday; or

    2. If the return was mailed in time to reach the IRS through normal handling within the legal period but, through no fault of the taxpayer, it was not delivered; or

    3. If it appears that the Post Office might have sent it to another government agency in error (e.g., Social Security Administration (SSA)); or

    4. If the original envelope bears a timely postmark or a timely date stamp by the other government agency; or

      Note:

      If the return was erroneously addressed to another IRS office, it will be date stamped by that office. Use that date as the earliest IRS received date.

    5. If delinquent return is secured by Exam; or

    6. If the return has a Reasonable Cause Statement attached to the return. ≡ ≡ ≡ ≡ ≡ .

  4. The due date for Form 3520 is the same as the due date for the filer’s income tax return, including extensions, or in the case of a decedent, the estate tax return. If the filer is an individual, then the due date for Form 3520 is the same as Form 1040 (generally April 15), but consider whether an extension was filed for Form 1040. Also consider whether the individual is residing overseas. If so, the individual is entitled to an automatic 2-month extension without requesting an extension. As a calendar year taxpayer, the individual may have until June 15 to file his or her income tax return.

    Reminder:

    There is no separate extension form for the timely filing of a Form 3520.

  5. The filing of an extension to file Form 3520 is dependent upon the U.S. taxpayer filing an extension for their U.S. income tax return, which extends automatically to the Form 3520.

    Example:

    An individual filing Form 1040 return can request an extension of time to file their Form 1040 with Form 4868. An approved Form 4868 extension to file Form 1040, is also valid for filing Form 3520. Form 4868 cannot be used to file for an extension request, for the SOLE purpose of obtaining an extension for filing Form 3520.

    Reminder:

    Unlike Form 3520, a separate extension form for the timely filing of Form 3520-A does exist. The taxpayer responsible for filing Form 3520-A must file Form 7004 to obtain an extension for the filing of Form 3520-A.

  6. The due date for Form 3520-A is the 15th day of the 3rd month after the end of the trust tax year, generally March 15.

  7. If a return is delivered to the IRS after the date prescribed for filing, then;

    • consider the postmark date stamped on the envelope as the date of delivery

    • consider the return as timely if the postmark date falls on or before the prescribed date for filing the return

♦Compliance Secured/Prepared Returns♦
  1. Compliance functions secure returns from the taxpayer and also 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.

♦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 a Received Date. If no Received Date is present per the Compliance Function, follow the normal procedures for editing the Received Date.

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

    3. Enter CCC "4."

      Note:

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

    4. Do Not correspond with the taxpayer for unprocessable conditions. If the return is completely unprocessable, enter CCC "U" and continue processing.

    5. Enter CCC "W" (Form 3520-A Only) if the Received Date is more than two years and nine months after the Return Due Date. Do Not send the return to Statute Control.

  3. Perfect Form 3520 or Form 3520-A using the information on the return and its attachments.

  4. If the return is otherwise unprocessable:

    1. Prepare Form 4227 to reject using Action Code "3" , if Form 3520, or suspend with Action Code "360" (other routing) if Form 3520-A.

    2. Indicate the point of the error or unprocessable condition on Form 4227.

  5. Upon receipt, Rejects will contact the Collection function to identify the revenue officer/agent to be contacted, and then contact the responsible revenue officer/agent to acquire the information needed to complete the return.

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

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

    2. Correspond for conditions that cannot be processed (e.g., missing signatures, missing schedules, etc.)

    3. Enter CCC "W" (Form 3520-A Only) if the Received Date is more than two years and nine months after the Return Due Date. Do Not send the return to Statute Control.

  2. If the return is incomplete, enter Action Code "3" (if Form 3520), or suspend with Action Code "360" (if Form 3520-A). Then delete the Document Locator Number (DLN) and route to Collection on a Form 3210 transmittal.

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

    Note:

    If return is noted as secured by exam, do not correspond Enter Action Code "3" for Form 3520 or suspend with Action Code "640" for Form 3520-A.

    1. Return must have a Received Date. If no Received Date is present, follow the normal procedures for editing the Received Date.

    2. Do Not correspond with the taxpayer for unprocessable conditions. If the return is completely unprocessable, use No Reply procedures and enter CCC "3," attach Form 4227 and continue processing.

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

      Note:

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

    4. Enter CCC "W" (Form 3520-A Only) if the Received Date is more than two years and nine months after the Return Due Date. Do Not send the return to Statute Control.

  2. If an unprocessable condition exists then:

    1. Prepare Form 4227

    2. Enter Action Code "3" for Form 3520 or suspend with Action Code "640" for Form 3520-A.

  3. Rejects will route the return back to Examination after voiding the document using Action Code "2D" for Form 3520, and RJECT 640 for Form 3520-A.

  4. When the return is a substitute return prepared by for Examination, then Document 13133, Expedite Processing Cycle, will have been attached by Examination.

    1. These returns do not need to be cleared by the Statute Unit.

    2. Enter CCC "4" in Field 01-G of Form 3520 or Field 01CCC for Form 3520-A.

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

    1. Enter the Computer Condition Codes that are checked on Form 13133.

    2. Enter CCC "W" (Form 3520-A Only) if the received date is more than two years nine months after the Return Due Date. Do Not send to Statute Control.

  2. If an unprocessable condition exists, then:

    1. Prepare Form 4227.

    2. Enter Action Code "3" for Form 3520 or suspend with Action Code "640" for Form 3520-A.

  3. Rejects will route the return back to Examination after voiding the document using Action Code "2D" for Form 3520 or "RJECT 640" for Form 3520-A.

♦Frivolous Returns and Claims♦
  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 (FRP), shown in Exhibit 3.22.19-7, Potential Frivolous Arguments for Examination Review.

  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 3.22.19-7),

    Exception:

    If the return shows Action Code 331 or Action Code"3" and 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, indicated by an Action Code 331 or Action Code "3" 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. However, do not circle or void the Action Code indicating a frivolous return.

    Note:

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

♦Criminal Investigation (CI) "Funny Box"

  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. Other CI Referral Criteria:

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

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

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

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

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
  3. For all other CI Referral criteria listed in paragraph (2), do the following:

    Caution:

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

    1. Make a copy of the return.

    2. Attach Form 4227 to the copy.

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

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

    5. Continue processing the return.

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

  5. 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. Examination 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.

Validity Errors

  1. Three general types of errors that will cause a record to print on the Error Register are:

    • Field Validity Errors

    • Section Validity Errors

    • Math/Consistency Errors

Field Validity Errors

  1. These errors result when required data is missing, or when incorrect data is present.

  2. These errors are indicated by an asterisk (*) printed before the invalid field.

  3. An asterisk may also be printed before a field for verification purposes.

  4. Correction Procedures:

    1. Compare the return entry with the Error Register field.

    2. Enter Action Code "6."

    3. Line out the incorrect field.

    4. Enter the correct data immediately above the lined-out data.

Section Validity Errors

  1. These errors include:

    • Missing data

    • Extraneous data

    • Integrated Submission and Remittance Process (ISRP) errors

    • Terminus errors

Missing Section Errors
  1. Missing Section Errors are caused by the transcription of an unnecessary section.

  2. These errors are indicated by one pound sign (#) preceding the section number.

Extraneous Section Errors
  1. Extraneous Section Errors are caused by the transcription of an unnecessary section.

  2. These errors are indicated by one pound sign (#) preceding the section number.

ISRP Errors
  1. ISRP Errors are caused when too many characters have been entered for a field.

  2. Extra characters are dropped when the data is converted to Error Register format.

  3. These errors are printed to the left of the Section Number and will be shown on the Error Register as described in (4), (5), (6) and (7) below:

  4. "#1" : Split screen transmission:

    • The Key Verifier attempted to change Check Digit.

    • The Key Verifier changed four or more digits of TIN.

    • The Original Entry operator entered required Section as "missing" .

  5. "#3" : Invalid Section ending point.

  6. "#4" : Invalid field length.

  7. "#5" : Questionable section. A section was entered twice or entered out of sequence by ISRP.

Terminus Errors
  1. Terminus Errors are caused when a non-numeric character is entered in a numeric field or when the format of a section is incorrect.

  2. These errors are identified by two asterisks (**) printed to the left of the section number.

Correcting Section Validity Errors
  1. Compare the section(s) entry with the Error Register fields.

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

  3. Enter Action Code "6."

  4. If no error is found, use Action Code "7" to clear the Error Register.

  5. For Terminus Errors, if a return entry is truly larger than the maximum size field that is acceptable for computer processing.

    1. Reject the return record with Action Code "3."

    2. Attach Form 4227 with an explanation.

Math/Consistency Errors

  1. These errors are caused when the computer computation differs from the taxpayer’s computation or the transcribed amount.

  2. Math Errors occur when:

    • There is a transcription error.

    • The taxpayer reports more entries than can be transcribed.

    • The taxpayer makes a mistake in a calculation.

  3. When a math error occurs,

    1. The computed amount in question will underprint with the computer's calculation.

    2. If the taxpayer has more entries than transcribed fields, the total will be entered in the appropriate "verified field."

  4. Use the "verified" field to bypass the math check on loop.

  5. If the transcription is correct, use Action Code "6" to enter the computer's calculation in the "verified" field.

  6. If the computer cannot compute the amount correctly (because there are more taxpayer entries than can be transcribed),

    • Verify the taxpayer's computation.

    • Enter Action Code "6" to enter the verified total into the "verified" field. Only use the verified fields when there are more entries than transcribed fields.

  7. To correct math/consistency errors:

    1. Compare the transcribed amount listed above the underprinted figure on the Error Register to the Form 3520 to ensure that the information was transcribed accurately.

    2. If the transcription is correct, and the error is within tolerance, bring up the underprinted amount into the verified field.

    3. If the transcription is correct, and the error is not within tolerance, use Action Code "6" to enter the manual calculation into the "verified" field.

    4. Always leave a working trail to ensure that any correction made on the Error Register is also made to the return itself.

Error Correction

  1. Error Register fields are identified by a letter designation in the left most position of the field.

  2. The designations are:

    • Fields A through V in Section 01

    • Fields A through FF in Section 02

    • Fields A through V in Section 03

    • Fields A through T in Section 04

    • Fields A through X in Section 05

    • Fields D through I in Section 06

    • Fields A through BB in Section 07

    • Fields A through Y in Section 08

    • Fields A through L in Section 11

    • Fields A through O in Section 12

    • Fields A through U in Section 13

    • Fields A through U in Section 14

    • Fields A through M in Section 15

    • Fields A through H in Section 16

    • Fields A through N in Section 17

    • Fields A through F in Section 18

    • Fields A through K in Section 19

    • Fields A through Z in Section 20

    • Fields A through Q in Section 21

  3. The length of each field, as indicated in the following paragraphs, is the maximum number of data characters and does not include the field's letter designation.

  4. On the Error Register, an asterisk "*" designates an invalid field.

  5. Any field may, however, be corrected even if not designated invalid.

  6. When making corrections to the Error Register, the correction must also be made to the corresponding area on the return.

  7. When an invalid or math error condition is indicated, determine whether correction of the transcription errors resolve the situation.

Correcting Invalid Correction Attempts

  1. An invalid correction attempt error is caused by:

    • an incorrect entry on the Error Register

    • a ISRP error when transcribing data from the Error Register

  2. A complete description of invalid attempts may be found in IRM 3.12.38, BMF General Instructions for Campus Error Resolution.

  3. When an invalid correction attempt is detected, "AA" is printed to the right of the Batch Number on the Document Identification Line of the Loop Error Register.

  4. If the cause of the invalid correction attempt can be determined, correct the Loop Error Register as if no attempt had been made to correct it before.

    Note:

    It may be necessary to examine the correction made on the prior Error Register.

  5. If the cause of the invalid correction attempt cannot be determined, enter Action Code "7" .

Unprocessable Returns

  1. When perfection of a return is not possible, it will be necessary to reject the return.

  2. Review the following unprocessable conditions and their respective corrective actions.

Illegible or Missing Data

  1. To correct illegible or missing data:

    1. Enter Action Code "3."

    2. Charge out the return.

    3. Prepare Form 4227 to Rejects.

    If... Then...
    the error condition involves an Illegible or Missing Name and/or Address, and the required data cannot be perfected through research of the document, prepare Form 4227, and attach it to the return.
  2. Rejects will input a Notice of Action on the Master File as discussed below by using IDRS Command Code REQ77 / FRM77 when:

    1. An unprocessable return is rejected and sufficient information is available: enter TC 599 and enter Closing Code 17 to defer the normal delinquency check.

    2. The EIN, Name Control, MFT, and Tax Period are present; enter TC 599 and enter Closing Code 17.

Processing Form 3520 - Error Register and General Information

  1. Use the following instructions when correcting Form 3520 which appear on the Error Register. See Exhibit 3.22.19-1.

  2. The Form 3520 Error Register contains Sections 01 through 21.

  3. The DLN for Form 3520 must have a "File Location Code of 60."

  4. Do not renumber to "66, 78 or 98" if a U.S. Possession address or a foreign address is present on the Form 3520.

  5. If any return was mistakenly assigned a DLN beginning with "29, 66, 78 or 98" then that return must be re-numbered to "60 (OSPC)."

  6. The Form 3520 can only be filed on paper (no electronic filings) and will be posted as:

    • File Location Code "60"

    • Tax Class "3"

    • Doc Code "83"

    • Blocking Series "000-999"

    • MFT Code "68"

    • Program Code "12310"

  7. Form 3520 is only processed at the OSPC.

  8. All money amounts must be entered in dollars only.

Section 01 - Form 3520

  1. Section 01 alpha field designators, maximum field lengths, titles and return locations are as follows:

    Alpha Designator Field Length Title Location on Return
    01-A 4 Name Control Line 1a
    01-B 1 TIN Type Line 1b, edited after TIN
    01-C 9 TIN Line 1b
    01-D 6 Tax Period First taxpayer data line
    01-E 8 Received Date Front of Return
    01-F "Reserved" Reserved Reserved
    01-G 10 CCC In the right margin next to "Amended" checkbox on Line A.
    01-H 8 Correspondence Received Date Right margin, above Line 1b
    01-I 1 Filer Entity Checkbox In the right margin next to "Executor" checkbox on Line B.
    01-J 1 Except Foreign Asset Checkbox Checkbox C
    01-K 1 U.S. Transferor Checkbox Checkbox 1
    01-L 1 U S Owner Checkbox Checkbox 2
    01-M 1 U S Distribution Recipient Checkbox Checkbox 3
    01-N 1 U S Gift Recipient Checkbox Checkbox 4
    01-O 6 Tax Form Filed Line k; after extension checkbox;
    01-P 4 Filer Service Center Above Line 1b
    01-Q 1 Spouse TIN Type Line 1d, edited after spouses TIN
    01-R 9 Spouse TIN Line 1d
    01-S 35 In-Care-of Name Line 1a or 1c
    01-T 35 Foreign Address Line 1c
    01-U 35 Street Address Line 1c
    01-V 22 City Line 1e
    01-W 2 State Line 1f
    01-X 12 ZIP Code Line 1g
    01-Y 2 Country Code Line 1h
    01-Z 1 Entity Underprint Code  

Field 01-A - Name Control (Line 1a)

  1. Field 01-A is a four-position field that must be present.

  2. Valid characters are alpha (a-z), numeric (0-9), ampersand (&), hyphen (-), and blank.

  3. Change a slash (/) or decimal point (.) in the Name Control to a hyphen (-). Use the hyphen when performing research.

    Example:

    Change "A/BC" to "A-BC"

  4. The name control is derived from the name on Line 1a.

  5. A filer may be:

    • An individual

    • A trust

    • An estate

    • A partnership

    • A corporation

    • A foundation

  6. If Field 01-A underprints, verify Field 01-B contains the proper indicator:

    • "0" (zero) if the TIN is a SSN

    • blank if the TIN is an EIN

  7. To delete an entry in Field 01-B,

    1. Line thru the entry in Field 01-B.

    2. Enter "1" in a circle above Field 01-B (fixed field).

      Note:

      Even though you corrected Field 01-B, you must enter "1" in Field 01-Z (Entity Underprint Code) to clear the underprint.

  8. If the field underprints with a different name control (not "XXXX" ):

    1. Verify the Name Control, and TIN (Field 01-C) are entered correctly.

    2. If transcribed incorrectly, enter the correct name (or TIN) in the corresponding field(s) using Action Code "6" .

      Reminder:

      When correcting the TIN, enter a "1" in Field 01-Z (Entity Underprint Code) to clear the Name Control underprint. Make sure the correct TIN was entered (e.g., a SSN for an individual or an EIN for anything else).

    3. If the correct name control is different from the underprint, enter a "1" in Field 01-Z (Entity Underprint Code).

    4. If the name control (and EIN) are transcribed correctly, research for a correct TIN using NAMEE and/or NAMEB. If no record, SCRS will reject the return and Rejects will send it to Entity Control.

  9. If the Name Control underprints with "XXXX" :

    1. Be sure that the name control/name and TIN are transcribed correctly.

    2. Research CC NAMEE and NAMEB for a correct TIN on INOLE to determine how the name and name control appear on Master File.

    3. If the TIN is in orange ink (meaning that it was assigned by Entity Control), be sure it was transcribed correctly.

    4. Enter "1" in Field 01-Z.

      Note:

      If the return is processed after the due date, enter the Entity Assignment Date (located next to the TIN in orange ink) in Field 01-H.

    5. If in your research you find a good TIN, enter it, and issue IDRS Letter 3875C. Ensure the correct name control is entered in Field 01-A, and Field 01-Z contains a "1" .

      Exception:

      Do not send IDRS Letter 3875C, if less than three digits of the EIN were incorrect, or if the EIN is transposed, different or missing.

  10. Whether the EIN / SSN is written in orange or not (e.g., it is a taxpayer or Code and Edit (C&E) entry), verify that the Name Control and EIN / SSN were transcribed correctly.

    1. If the transcription was incorrect, correct the data with Action Code "6" .

      Reminder:

      When correcting the TIN, enter "1" in Field 01-Z (EUC) to clear the Name Control underprint.

    2. If the transcription was correct, research by entering Action Code "3" .

  11. Research to determine the correct Name Control and/or TIN in the following order:

    • Command Code "NAMEB, NAMEE, NAMEI or NAMES."

    • Ensure that the TIN is correct.

    • Command Code "ENMOD and INOLE."

    • Ensure that the TIN is present.

  12. If a change has been made to the first or second name line on a pre-addressed label, with no change to the TIN (e.g., No TC 013 appears in the upper left corner of the return):

    1. Prepare Form 4227 to reject using Action Code "3" .

    2. Rejects will send to Entity Control.

  13. If the taxpayer has changed the TIN on a pre-addressed label,

    1. Prepare Form 4227 to reject using Action Code "3" .

    2. Rejects will send to Entity Control, notating "TAXPAYER CHANGED THE TIN" on the Form 4227.

  14. If it is ever necessary to use BMFOL to input a TC 013 for a name change, Form 3520 will not take a joint name (Husband and Wife) as the primary name on BNCHG. It must be one or the other, depending on who filed the return. If both names are on the return, use the first name shown.

Name Control Underprint
  1. The Name Control Underprint is a four-position field that is used when the transcribed name control requires correction.

  2. Enter a "1" in Field 01-Z (EUC) with Action Code "6" if all of the following conditions apply:

    • The Name Control is underprinted with four X s ("XXXX" ).

    • The TIN is written on the return in orange (TIN assigned by Entity Control).

    • The TIN on the Error Register agrees with the one on Form 3520. See Figure 3.22.19-1.

      Figure 3.22.19-1

      This is an Image: 34033001.gif
       

      Please click here for the text description of the image.

Field 01-B - TIN Type (Line 1b)

  1. Field 01-B is a one-position field that must be entered if the filer's TIN is a SSN or ITIN.

  2. Valid characters are "0" and blank.

  3. If the field is missing or invalid on the Error Register, determine if the TIN provided by the filer is a SSN/ITIN or an EIN. See Figure 3.22.19-2.

    If... Then...
    The TIN is an SSN/ITIN
    1. Enter "0" in Field 01-B.

    2. Enter "1" in Field 01-Z.

    3. Enter Action Code "6" .

    The TIN is an EIN Delete entry in Field 01-B.
    An EIN is present and a TIN Type indicator of "0" (or any other digit) is present in Field 01-B
    1. Line through Field 01-B.

    2. Enter "1" inside a circle above Field 01-B.

    3. Enter 1 in Field 01-Z.

    4. Use Action Code "6" . See Figure 3.22.19-3.

    Figure 3.22.19-2

    This is an Image: 34033002.gif
     

    Please click here for the text description of the image.

    Figure 3.22.19-3

    This is an Image: 34033003.gif
     

    Please click here for the text description of the image.

  4. Sometimes on the Rejects Register, Field 01-B may be invalid because there is a "2" in the field. This is an occasional program problem, because the "2" should not be generated until the return posts (the "2" indicates the TIN is an EIN). This causes an unpostable condition (UNP 301) also. When this occurs, look at the TIN on the return and change the TIN indicator field: "0" for an SSN and blank for an EIN. If you blank the field, enter a "1" in a circle above it, as Field 01-B is a fixed field (no field breaker).

    Note:

    TIN Type indicator "2" is never used on the Error Register or on the ERS screen. It is generated only when the document posts.

Field 01-C - Taxpayer Identification Number (TIN) (Line 1b)

  1. Field 01-C is a nine-position field that must be present.

  2. Valid characters are numeric (0-9).

  3. Field is invalid if any of the following conditions are present:

    • The entry is less than nine digits.

    • The entry consists of all the same number, e.g., all zeroes (0), all sixes (6), all nines (9), etc.

    • EIN begins with 00, 07, 08, 09, 17, 18, 19, 29, 49, 78, 79 or 89.

  4. Entries in this field may be any of the following:

    • EIN (Employer Identification Number)

    • SSN (Social Security Number)

    • ITIN (Individual Taxpayer Identification Number)

    If... And... Then...
    The TIN provided is a SSN or an ITIN   Enter "0" in Field 01-B
    There are two SSNs on Line 1b Two names on Line 1a Enter the SSN of the primary taxpayer in Field 01-C.
    There are two SSNs on Line 1b Only one name on Line 1a Enter the first SSN in Field 01-C.
    There is a change to the TIN on a pre-addressed label No indication that the Form 3520 was sent to Entity Control for review (i.e., an "orange" TIN)
    1. Prepare Form 4227 with the notation "MULTIPLE TINs" .

    2. Enter Action Code "3" .

    TIN is missing or invalid   Research the TIN using IDRS Command Codes NAMEB, NAMEE, NAMEI and NAMES
    No data can be found   Cancel the DLN per local procedures.
  5. When researching and EIN you may see any of the following at the end of the EIN:

    • "#" indicates the EIN is newly assigned but not yet posted

    • "9" indicates the EIN is new and not yet validated

    • "K" indicates the EIN is from the Key Index File

    • "P" indicates the EIN is from a Plan Administrator.

Field 01-D - Tax Period

  1. Field 01-D is a six-position field that must be present. The tax period is on the preprinted label or edited in the upper right corner of the return, to the left of the pre-printed year in YYYYMM format. The fifth and sixth positions must contain a valid two-position numeric month designation (0-12).

    Exception:

    Do not enter the Tax Period on current calendar year returns because the computer will Auto-generate the tax period.

  2. Valid characters are numeric (0-9).

  3. Field 01-D will be invalid if any of the following is present:

    • Field 01-D is blank.

    • The month is not in the range of 01-12.

    • The tax period is prior to 199812.

    • The tax period is for a future period (later than the register date).

    • The tax period is a month or less in the future.

  4. Form 3520 may be filed for either a calendar or fiscal year.

    Caution:

    Do not send any Form 3520 or Form 3520-A to Statute Control.

  5. The Tax Period month will underprint if it is different from the month transcribed.

    If... Then...
    The tax period is prior to 199812 (See Figure 3.22.19-4.)
    1. Enter Action Code "3" .

    2. Void the register.

    3. Prepare Form 4227 with the annotation "Tax Period prior to 199812."

    4. Staple Form 4227 to Form 3520.

    5. Place Form 3520 in an envelope and forward to Document Retention/Files.

    The tax period is not entered correctly
    1. Line through the error on the register.

    2. Enter the correct tax period.

    3. Enter Action Code "6" to the left of Section 01.

    4. Enter "2" in Field 01-Z.

    The tax period on the register agrees with the return
    1. Research INOLE and ENMOD for the correct Fiscal Year Month (FYM).

    2. If unable to determine the correct tax period, correspond with the taxpayer for the correct FYM period using Letter 3653C.

    3. If a new TIN account, forward the return to Entity Control for input of a TC 016.

    4. Enter the corrected tax period in Field 01-D.

    5. Enter "2" in Field 01-Z.

    The tax period ends on one of the first three days of a month
    1. Enter the tax period using the previous month in Field 01-D.

      Example:

      If the tax period ends February 3, 2018, then enter "201801" in Field 01-D

    2. Enter "2" in Field 01-Z.

    The tax period is later than the current date and the return is a Final Return
    1. Change the month in the tax period and Field 01-D to the month prior to the current month.

    2. Enter CCC "F" in Field 01-G, if not present.

    3. Enter "2" in Field 01-Z.

    The tax period is later than the current date and the return is not a Final Return
    1. Reject with Action Code "3" .

    2. Prepare Form 4227 with annotation "EARLY FILED RETURN."

    Figure 3.22.19-4

    This is an Image: 34033004.gif
     

    Please click here for the text description of the image.

Field 01-E - Received Date

  1. Field 01-E is an eight-position field that must be present.

  2. Valid conditions for Field 01-E are:

    • Must be in YYYYMMDD format

    • Must be all numeric (0-9)

  3. Field 01-E is invalid when any of the following conditions are present:

    • Field is blank or contains less than eight digits

    • It is not in the proper YYYYMMDD format

    • It is a future date

    • Field is prior to the tax period

    • The month is not 01-12 or the day is not 01-31, depending upon the month

    Month Day
    01, 03, 05, 07, 08, 09, 10 and 12 01-31
    04, 06, 09 and 11 01-30
    02 01–28 (29 in leap year)

    Note:

    Sometimes, especially in the beginning of the year, the date will show the correct day and month, but the previous year, due to a stamping error in Numbering. Change the year to the current year (look at the signature date, attachments, postmark date, etc. to help determine the correct year).

  4. Correct coding and transcription errors.

    If... Then...
    The received date is not stamped or edited on the return Determine the received date in the following priority and enter the date on the second line of the "For IRS Use Only " and in Field 01-E:
    1. Latest postmark date on an attached envelope (Service Center Automated Processing System (SCAMPS) digital dates).

    2. Revenue Officer's signature date.

    3. Return signature date (if current year).

    4. Julian date minus 10 days.

    5. Current date minus 10 days.

    Field 01-E is invalid because the month in the received date is the same as the month in the tax period, Enter the first day of the month following the month in the tax period in Field 01-E.
    There are multiple received dates and one of the received dates stamped is from another IRS office, Enter the earliest received date stamped in Field 01-E.
    There are multiple received dates and both dates are stamped by the same IRS office, Enter the latest received date stamped in Field 01-E.
    The return has both a U.S. Postal or foreign postmark and a private meter mark, Enter the U.S. Postal Service or foreign postmark in Field 01-E. See IRM 3.0.273, Administrative Reference Guide for further information.
  5. Use the following chart to select and enter the Received Date for returns addressed to IRS:

    IRS Received Date Official U.S. Postmark Received
    On or Before Due date N/A Use IRS Received Date
    After Return Due Date (RDD) On or Before RDD Use U.S. Postmark Date
    After Return Due Date After RDD Use IRS Received Date
    After Return Due Date Period Missing/Illegible Use IRS Received Date

Field 01-F - CAF Indicator

  1. The Centralized Authorization File (CAF) indicator is no longer required to be edited. Therefore, Field 01-F will always be blank.

Field 01-G - Computer Condition Codes (CCC)

  1. Field 01-G is a 10-position field that may or may not be present.

  2. Field 01-G is located in the upper section of Form 3520 to the right of the "Amended return" checkbox on Line B.

  3. The valid characters for Field 01-G are: "C" , "F" , "I" (Initial), N, "R" , "U" , "Y" , 3, 4, and 5.

    CCC Description
    C The Error Resolution/Rejects (ERS/REJ) function will enter CCC "C" only when instructed, after the taxpayer fails to respond to a request for required information to process Form 3520 (via Letter 3653C).

    Note:

    CCC "C" generates Internal Service Center (SC) Notice CP 223 to Ogden Accounts Management Campus (OAMC) for assessment of Civil Penalty under Section 6677 for filing an incomplete return. The Penalty Reference Number (PRN) is 659, Failure to Report Transactions with Foreign Trusts or Receipt of Certain Foreign Gifts (Form 3520).

    Note:

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

    F Final return filed, and future returns are not required. Filing requirement for the return is removed.
    • "Final return" box is checked on Line A

    • A notation on the return such as:
      "FINAL "
      "OUT OF BUSINESS"
      "LIQUIDATED"
      Or other indication.

    I Initial return filed (Initial return box is checked on Line A).
    N Bypass EIN requirement
    R Suppress initiation of CP 223
    U Unprocessable return (Correspondence may be required)

    Note:

    CCC "U" is only valid when used by Code & Edit

    Y Short Period Return
    3 Indicates that there was "No Reply" to correspondence.

    Caution:

    CCC "3" cannot be present if there is an entry in Field 01-H (Correspondence Received Date). Determine the correct entry and delete the other.

    4 Indicates the return was prepared by the IRS under IRC 6020(b).
    5 Indicates that Form 1040 was listed on Page 1, Line k, as Tax Form Filed with an extension request. Must be present if Form 1040 is present on Line k.

Field 01-H - Correspondence Received Date (CRD)

  1. Field 01-H is an eight-position field that may or may not be present.

  2. The valid characters are numeric (0-9) in YYYYMMDD format or blank.

  3. Field 01-H is invalid if any of the following is present:

    • The entry is not in YYYYMMDD format

    • The entry is the same as the Received Date in Field 01-E

    • The entry is earlier than the Received Date in Field 01-E

    • The entry is earlier than the return due date (including the grace period)

  4. Edit the Correspondence Received Date above Line 1, Box b, Identification number, and enter it in Field 01-H when a reply to correspondence is received.

  5. Review the attached correspondence to determine the reply received date.

    Caution:

    Field 01-H cannot have an entry if CCC "3" is present in Field 01-G. Determine the correct entry and delete the other.

    If... Then...
    The attached correspondence is date stamped, Enter the date stamped on the correspondence in Field 01-H.
    The attached correspondence is not date stamped, Enter the postmark date from the attached envelope in Field 01-H.
    The correspondence was received via fax, Enter the date the fax was received in Field 01-H.
    The received date of the correspondence is prior to the due date, Delete the entry in Field 01-H.
    Both a correspondence received date and an Entity Assignment date are present, Enter the later date in Field 01-H.
    No reply to correspondence received,
    1. Delete the entry from Field 01-H.

    2. Enter CCC "3" in Field 01-G.

  6. Do not enter a date in Field 01-H if:

    • The taxpayer is not at fault.

    • The correspondence is due to IRS error.

Field 01-I - Type of Return Code (Line B)

  1. Field 01-I is a one-position field that must be present.

  2. Valid characters are:

    • "I" - Individual

    • "P" - Partnership

    • "C" - Corporation

    • "T" - Trust

    • "E" - Executor

  3. The Type of Return Code is located in the right margin next to the Executor box on Line B.

  4. Correct Field 01-I as follows:

    If... Then...
    Field 01-I is blank or invalid Review return to determine if a checkbox was checked.
    A checkbox is checked, Enter the appropriate code for the box checked in Field 01-I.
    A checkbox is not checked, Use the name on Line 1a to determine the type of entity.
    The type of entity can be determined from the name on Line 1a,
    1. Enter the appropriate code to the right of Line B.

    2. Enter the code in Field 01-I.

    The type of entity cannot be determined from the name on Line 1a,
    1. Research INOLE to determine filing requirement.

    2. Enter the appropriate code to the right of Line B.

    3. Enter the appropriate code in Field 01-I.

Field 01-J - Excepted Specified Foreign Financial Assets Reported Checkbox

  1. Field 01-J is a one-position field that may or may not be present.

  2. Valid characters are “1” and zero.

  3. Field 01-J is invalid if an entry other than “1” or zero is present.

Field 01-K - U.S. Transferor Checkbox

  1. Field 01-K is a one-position field that must be present if there are entries in Part I (Lines 5a through 19) of Form 3520, pages 2 and 3.

  2. Valid characters are "1" and blank.

  3. Field 01-K is invalid if an entry other than 1 is present.

    Reminder:

    If Checkbox 1 is checked then Part 1, Lines 5a through 19 (Sections 01 through 11) must contain entries.

    If... Then...
    Checkbox 1 is checked Enter "1" in Field 01-K.
    Checkbox 1 is not checked Review return to determine if Part 1(Lines 5a to 19) is completed.
    Part 1 (Lines 5a to 19) is completed Enter "1" in Field 01-K.
    Part 1 (Lines 5a to 19) is not completed, Correspond with the taxpayer using Letter 3653C to request the information.
    Taxpayer responds with the requested information, Enter "1" in Field 01-K.
    Taxpayer does not respond, Enter CCC "3" in Field 01-G.

Field 01-L - U.S. Owner Checkbox

  1. Field 01-L is a one-position field that must be present if there are entries in Part 2 (Lines 20 through 23) of Form 3520, page 4.

  2. Valid characters are "1" and blank.

  3. Field 01-L is invalid if an entry other than 1 is present.

    Reminder:

    If Checkbox 2 is checked then Part 2, Lines 20 through 23 (Section 12) must contain entries.

    If... Then...
    Checkbox 2 is checked Enter "1" in Field 01-L.
    Checkbox 2 is not checked Review return to determine if Part 2 (Lines 20 to 23) is completed.
    Part 2 (Lines 20 to 23) is completed Enter "1" in Field 01-L.
    Part 2 (Lines 20 to 23) is not completed, Correspond with the taxpayer using Letter 3653C to request the information.
    Taxpayer responds with the requested information, Enter "1" in Field 01-L.
    Taxpayer does not respond, Enter CCC"3" in Field 01-G.

Field 01-M - U.S. Distribution Recipient Checkbox

  1. Field 01-M is a one-position field that must be present if there are entries in Part 3 (Sections 13 through 18) of Form 3520, pages 4 and 5.

    Exception:

    A U.S. person who is also a grantor or beneficiary of a foreign trust that has made a loan of cash or marketable securities to themselves is not required to complete Section 13 (Line 24).

  2. Valid characters are "1," "2," and blank.

    Note:

    Valid character "2" was added to Field 01-M to bypass Section 13 for RAW and Correction only. Section 02 and 14 through 18 is still required.

  3. Field 01-M is invalid if an entry other than 1 or 2 is present.

    Reminder:

    If Checkbox 3 is checked then Part 3, Lines 24 through 53 (Sections 13 through 18) may or may not contain entries.

    If... Then...
    Checkbox 3 is checked Enter "1" in Field 01-M.
    Checkbox 3 is not checked Review return to determine if Part 3 (Lines 24 to 53) is completed.
    Part 3 (Lines 24 to 53) is completed Enter "1" in Field 01-M.
    Part 3 (Lines 25 to 53) is completed Enter "2" in Field 01-M. This will bypass Section 13.
    Part 3 (Lines 24 to 53) are not completed, Correspond with the taxpayer using Letter 3653C to request the information.
    Taxpayer responds with the requested information, Enter "1 or 2" in Field 01-M.
    Taxpayer does not respond, Enter CCC "3" in Field 01-G.

Field 01-N - U.S. Gift Recipient Checkbox

  1. Field 01-N is a one-position field that must be present if there are entries in Part 4 (Sections 19 and 20) of Form 3520, page 6.

  2. Valid characters are "1" and blank.

  3. Field 01-N is invalid if an entry other than 1 is present.

    Reminder:

    If Checkbox 4 is checked then Part 4, Lines 54 through 56 (Sections 19 and 20) must contain entries.

    If... Then...
    Checkbox 4 is checked Enter "1" in Field 01-N.
    Checkbox 4 is not checked Review return to determine if Part 4 (Lines 54 to 56) is completed.
    Part 4 (Lines 54 to 56) is completed Enter "1" in Field 01-N.
    Part 4 (Lines 54 to 56) is not completed, Correspond with the taxpayer using Letter 3653C to request the information.
    Taxpayer responds with the requested information, Enter "1" in Field 01-N.
    Taxpayer does not respond, Enter CCC "3" in Field 01-G.

Field 01-O - Tax Form Filed

  1. Field 01-O is a six-position field that may be present.

  2. Valid characters are alpha (a-z) and numeric.

  3. Valid entries can be three to six positions.

  4. Valid Form numbers are

    • 1040

    • 1041

    • 1120 Series

    • 1065

    • 706

  5. Field 01-O is invalid if any of the following is present:

    • The first position is blank followed by a significant entry

    • A form other than those listed in (4) above

    • If Form 1040 is listed and CCC “5” is not present

  6. Correction Procedures:

    1. Correct coding and transcription errors.

Field 01-P - Campus of Filer's Return

  1. Field 01-P is a four-position field that may be present.

  2. Valid characters are alpha (a-z) and the following formats:

    • ANSC, Andover Campus

    • ATSC, Atlanta Campus

    • AUSC, Austin Campus

    • BSC, Brookhaven Campus

    • CSC, Cincinnati Campus

    • FSC, Fresno Campus

    • KCSC, Kansas City Campus

    • MSC, Memphis Campus

    • OSC, Ogden Campus

    • PSC, Philadelphia Campus

    Note:

    Several of the Campuses listed above are no longer processing returns, but are required for prior year returns.

  3. Field 01-P is invalid if any of the following is present:

    • Field contains an entry other than one of the campuses shown above

    • The first position is blank followed by a significant entry

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. If Field 01-P is asterisked, enter the campus code related to the taxpayer’s resident state shown on Form 3520 Line 1f, or Form 3520-A, Page 3, Line 6e.

      If taxpayer address is... Then enter 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
    3. If taxpayer’s resident state cannot be determined, enter AUSC if the filer is an individual or OSC if the filer is a business entity.

Field 01-Q - Spouse's TIN Type (Line 1d)

  1. Field 01-Q is a one-position field that must be present if Field 01-R is an SSN or ITIN. Valid characters are 0 and blank.

  2. See IRM 3.22.19.6.2 (3) for correction procedures.

Field 01-R - Spouse's TIN (Line 1d)

  1. Field 01-R is a nine-position field that may be present.

  2. Valid characters are numeric (0-9) or blank.

  3. Field is invalid if any of the following conditions are present:

    • The entry is less than nine digits.

    • The entry consists of all the same number, e.g., all zeroes (0), all sixes (6), all nines (9), etc.

    • EIN begins with 00, 07, 08, 09, 17, 18, 19, 29, 49, 78, 79 or 89.

  4. Entries in this field may be any of the following:

    • EIN (Employer Identification Number)

    • SSN (Social Security Number)

    • ITIN (Individual Taxpayer Identification Number)

  5. Correct the field using the information provided on the return or on an attachment to the return.

  6. Leave the field blank if the TIN cannot be determined.

Field 01-S - "In- Care-of" Name(Line 1a)

  1. Field 01-S is a 35-position field that may or may not be present. If the "In-Care-of" Name is present, then enter it in Field 01-S.

  2. The valid characters are alpha (a-z), numeric (0-9), ampersand (&), percent (%), hyphen (-) and slash (/).

    Note:

    The first character of the "in-care-of" name must be alpha or numeric.

  3. Field 01-S is invalid if any of the following conditions are present:

    • The first position is blank

    • The first character of the "in-care-of" name is not alpha or numeric

    • There are two consecutive blanks between significant characters

    If... Then...
    A blank is in the first position
    1. Delete blank.

    2. Enter the "in-care-of" name beginning with an alpha or numeric in Field 01-S.

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

    2. Enter the "in-care-of" name beginning with an alpha or numeric in Field 01-S.

    Two consecutive blanks are present between significant characters Delete any unnecessary blanks in Field 01-S.

Field 01-T - Foreign Address (Line 1c)

  1. Field 01-T is a 35-position field for Form 3520 (or Field 02FAD for Form 3520-A) that may or may not be present.

    Note:

    If the filer is an individual residing overseas (non-U.S. address), such individual filer gets an automatic two-month extension until June 15 to timely file their return. Enter CCC "R" to suspend initiation of the CP 223 notice.

  2. Ogden Submission Processing Campus will work all foreign/international addresses and U.S. Possessions/Territories returns.

  3. The valid characters are alpha (a-z), numeric (0-9), hyphen/dash (-), slash (/) and blank.

    Reminder:

    International; Coding and Editing BMF Returns (Foreign Address Job Aid) - 2324–002 provides examples of foreign addresses.

  4. Field 01-T (or Field 02FAD for Form 3520-A) is invalid if any of the following conditions are present:

    • The first position is blank.

    • Any character follows two consecutive blanks.

    • There are more than 35 characters in the field.

    Note:

    ISRP is instructed to input a pound sign (#) as the 35th character if there are more than 35 characters present for this field on the return. If the foreign address is longer than 35 characters, continue the address in Field 01-U (Field 02ADD for Form 3520-A).

  5. The determination of a foreign address is based only on the address of the person filing the return.

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

    2. All U.S. Possessions/Territories are considered foreign for processing purposes.

  6. A foreign address will contain:

    • Street address or P.O. Box.

    • City or town name.

    • Other principal subdivision (e.g., province, state, county, etc.).

    • Postal code, if present, can be before or after the city, town, province, state, county, etc. name but always before the foreign country.

    • Foreign country. See Section 5 of Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

    Figure 3.22.19-5

    Address on Return Address on Error Register
    Ash Birch
    Das Fir Str 26
    28003 Bremen, Germany

    Field 01-S - Ash Birch
    Field 01-T - Das Fir Str 26 28003 Bremen
    Field 01-U (continue address in this field if maximum characters of 35 is exceeded in Field 01-T)
    Field 01-V - GM
    Field 01-W - ._ (the underline represents a blank space)
    Field 01-X - (field must be blank for a foreign address)
    Field 01-Y - GM
    Holly Teak
    PO Box 981075, Hemlock
    Cape Town 8001 South Africa

    Field 01-S - Holly Teak
    Field 01-T - PO Box 981075 Hemlock
    Field 01-U - Cape Town 8001
    Field 01-V - SF
    Field 01-W - ._ (the underline represents a blank space)
    Field 01-X -
    Field 01-Y - SF
    Willow Pine
    Rue Cypress 13, 1200 Geneva, Switzerland
    Field 01-S - Willow Pine
    Field 01-T - Rue Cypress 13
    Field 01-U - Geneva 1200
    Field 01-V - SZ
    Field 01-W - ._ (the underline represents a blank space)
    Field 01-X - (field must be blank for a foreign address)
    Field 01-Y - SZ
  7. See Exhibit 3.22.19-3 for the appropriate abbreviation if the address contains a state, province or territory from any of the following countries:

    • Australia

    • Brazil

    • Canada

    • Cuba

    • Italy

    • Mexico

    • The Netherlands

  8. Returns with an address in the U.S. Possessions/Territories are considered foreign returns for processing purposes and are entered in the same way as domestic addresses.

    1. A two-character alpha code must be entered in Field 01-V for the possession/territory name. See Figure 3.22.19-6.

    2. A ZIP Code must be present for U.S. Possessions/Territories.

    Figure 3.22.19-6

    U.S. Possession/Territory State Abbreviation
    American Samoa AS
    Federated States of Micronesia FM
    Guam GU
    Marshall Islands MH
    Northern Mariana Islands MP
    Palau PW
    Puerto Rico PR
    Virgin Islands (U.S.) VI
  9. The U.S. Postal Service established new address requirements for Army Post Office (APO), Fleet Post Office (FPO), Diplomatic Post Office (DPO) addresses. If the old address appears (e.g., APO New York, NY 091XX), convert to the new state code abbreviation based on the ZIP Code (e.g., the previous example would be converted to APO AE 091XX). APO/FPO/DPO addresses are considered domestic addresses. Refer to conversion chart below:

    ZIP Code Address Country APO/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]

Field 01-U - Street Address (Line 1c)

  1. Field 01-U is a 35-position field for Form 3520 (or Field 02ADD for Form 3520-A) that must be present.

  2. The valid characters are alpha (a-z), numeric (0-9), dash/hyphen (-), slash (/) and blank.

  3. Field 01-U is invalid if any of the following conditions are present:

    • Any character is present other than alpha, numeric, blank, dash or slash

    • The first position is blank

    • Any character follows two consecutive blanks

    • There are more than 35 characters present in the field.

    Note:

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

  4. When entering either the mailing address or location address information, remember the following guidelines:

    1. Ensure that a house or building number is present.

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

    3. If present, always input the street suffix, such as street, drive, lane, terrace, etc. See Document 7475 , Section 3, for address abbreviations.

    4. If present, always include the direction information, such as North, South, East, West, etc.

    5. If the name of a street is also a direction and a direction is present, abbreviate the direction only and not the name of the street.

      Example:

      1836 West South Street would be entered as 1836 W South St.

  5. Enter Action Code "6" to the left of Section 01, when correcting the address.

    If... Then...
    Address is more than 35 characters Abbreviate the address if necessary.
    The first position is blank All positions must be blank.
    Street address is in error and a valid Major City Code is present Correct by entering the entire name of the city in Field 01-T (Field 02CTY for Form 3520-A) and the State Code in Field 01-W (Field 02ST for Form 3520-A). See Exhibit 3.22.19-2.
    If no street address or P.O. Box is provided Enter the word "Local" on the street address line.

    Note:

    This should occur in very small towns only.

Field 01-V - City (Line 1e)

  1. Field 01-V is a 22-position field that must be present.

  2. When a foreign address is present then the foreign country code will be entered in Field 01-V. See Document 7475, Section 5 for a list of valid foreign country codes.

  3. Valid characters are alpha (a-z) and blank.

  4. Field 01-V is invalid if any of the following conditions are present:

    • The first position is blank

    • Any position contains other than a blank or alpha

    • Any character follows two consecutive blanks

    • The Major City Code does not match any of the valid codes in the Major City Code Table. See Document 7475, Section 2.

      Note:

      Certain cities within each state are designated Major Cities and are assigned a special code of two alpha characters. ISRP will enter the Major City Code as appropriate. This code represents the city and state and is transcribed on the error record with no intervening blanks and no other characters in the City field either before or after the code.

    • Foreign country code is not valid or Field 01-V contains "XX"

  5. Correct coding and transcription errors, and refer to the following correction procedures:

    If... Then...
    A Major City Code is used Field 01-V must be present.
    Field 01-V contains an error Check to see if the Major City Code is correct.
    Field 01-V is not valid and a Major City Code cannot be determined Enter the entire city name in Field 01-V.
    A Major City code is not used and Field 01-V is present Field 01-W (State) must be present.
    A foreign address is shown on the return Enter the appropriate foreign country code in Field 01-V. See Document 7475, Section 5.
    Field 01-V contains an incorrect country code or "XX" Enter the appropriate foreign country code in Field 01-V. See Document 7475, Section 5.

Field 01-W - State (Line 1f)

  1. Field 01-W is a two-position field that must be present.

  2. The valid characters are alpha (a-z) and period.

    Caution:

    This field can never be completely blank.

  3. If Field 01-W contains alpha, then the entry must be on the list of valid state codes.

  4. If Field 01-W contains a period, then it must be followed by a blank and no other entry.

  5. If the address is one of the U.S. states or a U.S. Possession (see Figure 3.22.19-6), enter the valid state code from the list of valid state codes. See Document 7475.

    Note:

    Since there is no state code for foreign country (other than for the U.S. possessions which use the same address format as a U.S. state), a period (.) is entered into the first position of Field 01-W to take the place of the state code. To ensure that the period is transcribed into the first position (it will work if the period is in the second position), the period is followed by a "1" in a circle (which indicates one blank space).

    Figure 3.22.19-7

    This is an Image: 34033007.gif
     

    Please click here for the text description of the image.

Field 01-X - ZIP Code (Line 1g)

  1. Field 01-X is a 12-position field that must be present for all U.S. and U.S. possession addresses. It must not be present for other foreign addresses.

  2. The valid characters are numeric (0-9).

  3. A minimum of five (5) digits must be entered when required but up to 12 digits can be entered.

  4. Field 01-X is invalid when any of the following conditions are present:

    • Field 01-X is blank and there is a valid state code in Field 01-W.

    • Field 01-X is present and a period is present in Field 01-W.

    • The ZIP Code in Field 01-X does not agree with the state code in Field 01-W.

  5. The only ZIP Codes that can be entered in Field 01-X are for U.S. states and U.S. Possessions/Territories.

  6. Postal codes from any foreign country cannot appear in Field 01-X. Postal codes are part of the foreign address.

    If... Then...
    The address is a U.S. address and Field 01-X is missing or incomplete
    1. Research Document 7475 , Section 1.

    2. Enter the correct ZIP Code in Field 01-X.

    The ZIP Code is for a U.S. Possession/Territory and there is a period in Field 01-W
    1. Delete the period from Field 01-W.

    2. Enter the appropriate state code abbreviation for the possession/territory in Field 01-X. See Document 7475.

    3. Delete the name of the U.S. Possession/Territory if present in another field.

    Field 01-X is present and there is period in Field 01-W
    1. Review the return to determine if there is a foreign address.

    If a foreign address is present on the return
    1. Delete entry from Field 01-X.

    2. Delete city from Field 01-V if present, and enter the appropriate country code. See Document 7475, Section 5.

    A foreign address is not present on the return
    1. Delete the period from Field 01-W.

    2. Enter the appropriate state code in Field 01-W. See Document 7475.

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

    Note:

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

    If... And... Then...
    Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, Mailing address information is the same and no location address is listed on Form 8822/Form 8822-B, Line 7 Take no action and continue processing.
    Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, Mailing address information is different and/or a location address is listed on Form 8822/Form 8822-B, Line 7
    1. Enter address shown on Form 8822/Form 8822-B in Field (form specific) FAD.

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

    3. Detach Form 8822/Form 8822-B and route to Entity Control using Form 4227 or follow local procedures.

    4. Notate on Form 4227, "CHANGE OF ADDRESS PER FORM 8822 or FORM 8822-B" .

    Note:

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

Field 01-Y - Country Code (Line 1h)

  1. Field 01-Y is a two-position field that must be present when Field 01-W contains a period in the first position.

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

  3. Field 01-Y is invalid when any of the following conditions are present:

    • Field 01-Y contains characters other than alpha

    • Field 01-Y is blank and there is a "period /blank" in Field 01-W

  4. If the Country Code is missing or invalid, enter the correct Country Code in Field 01-Y. See Document 7475, Section 5 for a list of valid Country Codes.

    Caution:

    Field 01-Y cannot contain "U.S." or a country code of a U.S. Possession.

Field 01-Z - Entity Underprint Code

  1. Field 01-Z is a one-position field that may be present.

  2. Entries to this field can only be made during the error resolution process.

  3. Valid characters are "1" , "2" , "3" and blank.

  4. Enter the appropriate Entity Underprint Code in Field 01-Z to clear the underprint as indicated:

    • "1" - clears the Name Control underprint

    • "2" - clears the Tax Period underprint

    • "3" - clears both the Name Control and Tax Period underprints

Section 02 - Form 3520

  1. Section 02 alpha field designators, maximum field lengths, titles and return locations are as follows:

    Alpha Designator Field Length Title Location on Return
    02-A 40 Name of Foreign Trust Line 2a
    02-B 1 TIN Type Line 2b, edited after the TIN
    02-C 9 TIN Line 2b
    02-D 35 Street Address Line 2c
    02-E 22 City Line 2d
    02-F 2 State Line 2e
    02-G 12 ZIP Code Line 2f
    02-H 2 Country Code Line 2g
    02-I 1 Yes - No Checkbox Line 3
    02-J 40 Name of U.S. Agent Line 3a
    02-K 1 TIN Type Line 3b edited after TIN
    02-L 9 TIN Line 3b
    02-M 35 Street Address Line 3c
    02-N 22 City Line 3d
    02-O 2 State Line 3e
    02-P 12 ZIP Code Line 3f
    02-Q 2 Country Code Line 3g
    02-R 40 Name of U.S. Decedent Line 4a
    02-S 35 Street Address Line 4b
    02-T 22 City Line 4b
    02-U 2 State Line 4b
    02-V 12 ZIP Code Line 4b
    02-W 2 Country Code Line 4b
    02-X 1 TIN Type Line 4c, edited after the TIN
    02-Y 9 TIN Line 4c
    02-Z 8 Date of Death Line 4d
    02-AA 9 EIN of Estate Line 4e
    02-BB 1 Preparer Signature Indicator Preparer Signature Line
    02-CC 9 Preparer PTIN Preparer's PTIN Line
    02-DD 9 Preparer EIN Preparer's PTIN Line
    02-EE 10 Preparer Phone Number Reserved
    02-FF 1 U.S. Decedent Checkbox Line 4f

Field 02-A - Name of Foreign Trust (Line 2a)

  1. Field 02-A is a 40-position field the must be completed if Field 01-L is checked.

  2. Valid characters are alpha (a-z), numeric (0-9), ampersand (&), hyphen (-) and blank.

    Note:

    If Field 02-A has an entry then Field 02-D through 02-H should contain entries also.

    If... Then...
    The name on Line 2a is illegible, Check attachments and supporting schedules for a more legible entry.
    A more legible entry is located,
    1. Enter the name in block letters immediately above the filer's entry.

    2. Enter the correct Foreign Trust Name in Field 02-A.

    A more legible entry is not located,
    1. Research CC INOLE using the TIN on Line 2b (Field 02-B).

    2. Enter the correct name in Field 02-A.

Field 02-B - Foreign Trust TIN Type (Line 2b)

  1. Field 02-B is a one-position field that must be entered if the Foreign Trust TIN is a SSN or ITIN.

  2. See IRM 3.22.19.7.3(1) for EIN exceptions.

  3. See IRM 3.22.19.6.2 for correction procedures.

Field 02-C - Foreign Trust TIN (Line 2b)

  1. Field 02-C is a nine-position field that must be present if Field 01-L is checked.

    Note:

    An EIN would not be required in cases such as

    1. When the taxpayer is reporting a gift from a foreign person on Part IV.

    2. When checkbox 4 is checked and line 2b is blank

      Note:

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

Field 02-D - Foreign Trust Street Address (Line 2c)

  1. Field 01-D is a 35-position field that may be present.

Field 02-E - Foreign Trust City (Line 2d)

  1. Field 02-E is a 22-position field that may be present.

Field 02-F - Foreign Trust State (Line 2e)

  1. Field 02-F is a two-position field that may be present. See Document 7475.

Field 02-G - Foreign Trust ZIP Code (Line 2f)

  1. Field 02-G is a 12-position field that may be present. See Document 7475.

Field 02-H - Foreign Trust Country Code (Line 2g)

  1. Field 02-H is a two-position field that may be present.

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

  3. Field 02-H is invalid if the field contains an entry other than alpha.

  4. If the Country Code is missing or invalid, enter the correct Country Code in Field 02-H. See Document 7475 , Section 5 for a list of valid Country Codes.

    Caution:

    Always use the Country Code "CA" for Canada in Section 02 through 20.

Field 02-I - U.S. Appointed Agent Checkbox (Line 3)

  1. Field 02-I is a one-position field that may be present.

  2. Valid characters are "1" , "2" , "3" and blank.

    If... Then...
    The "Yes" box is checked Enter "1" in Field 02-I.
    The "No" box is checked Enter "2" in Field 02-I.
    Both boxes are checked Enter "3" in Field 02-I.
    Neither box is checked Delete the entry from Field 02-I.

Field 02-J - U.S. Agent Name (Line 3a)

  1. Field 02-J is a 40-position field that must be present if Field 02-I is "1" (Question 3 checked "Yes " ).

  2. Valid characters are alpha (a-z), numeric (0-9), ampersand (&), hyphen (-) and blank.

    If... Then...
    The name is illegible, Check attachments and supporting schedules for a more legible entry.
    A more legible entry is located,
    1. Enter the name in block letters immediately above the filer's entry.

    2. Enter the correct Foreign Trust Name in Field 02-A.

    A more legible entry is not located, Leave field blank.

Field 02-K - U.S. Agent TIN Type (Line 3b)

  1. Field 02-K is a one-position field that may be present if the entry in Field 02-L is a SSN or ITIN.

  2. See IRM 3.22.19.6.2 for correction procedures.

    Note:

    If Line 3b is blank, enter CCC "N" to bypass the EIN requirement.

Field 02-L - U.S. Agent TIN (Line 3b)

  1. Field 02-L is a nine-position field that may be present if Field 02-I is "1" (Question 3 checked "Yes " ).

    Note:

    If Line 3b is blank, enter CCC "N" to bypass the EIN requirement.

Field 02-M - U.S. Agent Street Address (Line 3c)

  1. Field 02-M is a 35-position field that must be present if Field 02-I is "1" (Question 3 checked "Yes " ).

Field 02-N - U.S. Agent City (Line 3d)

  1. Field 02-N is a 22-position field that must be present if Field 02-I is "1" (Question 3 checked "Yes " ).

Field 02-O - U.S. Agent State (Line 3e)

  1. Field 02-O is a two-position field that must be present if Field 02-I is "1" (Question 3 checked "Yes " ).

Field 02-P - U.S. Agent ZIP Code (Line 3f)

  1. Field 02-P is a 12-position field that must be present if Field 02-I is "1" (Question 3 checked "Yes " ).

Field 02-Q - U.S. Agent Country Code (Line 3g)

  1. Field 02-Q is a two-position field that must be present if Field 02-I is "1" (Question 3 checked "Yes " ).

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

  3. Field 02-Q is invalid if the field contains and entry other than alpha.

  4. If the Country Code is missing or invalid, enter the correct Country Code in Field 02-Q. See Document 7475, Section 5 for a list of valid Country Codes.

    Caution:

    Always use the Country Code "CA" for Canada in Section 02 through 20.

Field 02-R - U.S. Decedent Name (Line 4a)

  1. Field 02-R is a 40-position field the may be present.

    Note:

    If an entry appears in Field 02-R then Field 02-S through Field 02-AA should be completed.

  2. See IRM 3.22.19.7.10(2) for correction procedures.

Field 02-S - U.S. Decedent Street Address (Line 4b)

  1. Field 02-S is a 35-position field that must be present if there is an entry in Field 02-R.

Field 02-T - U.S. Decedent City (Line 4b)

  1. Field 02-T is a 22-position field that must be present if there is an entry in Field 02-R.

Field 02-U - U.S. Decedent State (Line 4b)

  1. Field 02-U is a two-position field that must be present if there is an entry in Field 02-R.

Field 02-V - U.S. Decedent ZIP Code (Line 4b)

  1. Field 02-V is a 12-position field that may be present.

Field 02-W - U.S. Decedent Country Code (Line 4b)

  1. Field 02-W is a two-position field that may be present.

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

  3. Field 02-W is invalid if the field contains and entry other than alpha.

  4. If the Country Code is missing or invalid, enter the correct Country Code in Field 02-Q. See Document 7475, Section 5 for a list of valid Country Codes.

    Caution:

    Always use the Country Code "CA" for Canada in Section 02 through 20.

Field 02-X - U.S. Decedent TIN Type (Line 4c)

  1. Field 02-X is a one-position field that must be present if the entry in Field 02-Y is an SSN or ITIN.

  2. See IRM 3.22.19.6.2 for correction procedures.

Field 02-Y - U.S. Decedent TIN (Line 4c)

  1. Field 02-Y is a nine-position field that may be present.

Field 02-Z - U.S. Decedent Date of Death (Line 4d)

  1. Field 02-Z is an eight-position field that may be present.

  2. Valid characters are numeric (0-9) only.

  3. Field 02-Z is invalid when any of the following conditions are present:

    • The Field contains less than eight digits.

    • It is not in the proper YYYYMMDD format.

    • It is a future date.

    • The Field is prior to the tax period.

    • The month is not 01-12 or the day is not 01-31, depending upon the month.

    Month Day
    01, 03, 05, 07, 08, 09, 10 and 12 01-31
    04, 06, 09 and 11 01-30
    02 01–28 (29 in leap year)

    Note:

    See IRM 3.22.19.8.11 (6) for additional instructions.

  4. If Field 02-Z is incomplete or invalid, research INOLE for date of death. Use the Decedent SSN from Field 02-Y for researching.

Field 02-AA - U.S. Decedent's Estate TIN (Line 4e)

  1. Field 02-AA is a nine-position field that may be present.

Field 02-BB - Preparer Signature Indicator

  1. Field 02-BB is a one-position field that may be present.

  2. Valid characters are "1" and blank.

  3. Field 02-BB is invalid if an entry other than "1" or blank is present.

  4. Field 02-BB must be present if a Preparer's Signature is present on the return.

    If... Then...
    A Preparer's Signature is present on the return Enter "1" in Field 02-BB.
    A Preparer's Signature is not present on the return Delete any entry present in Field 02-BB.
    "1" is present in Field 02-BB Fields 02-CC must be present.
♦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.

Field 02-CC - Preparer Tax Identification Number (PTIN)

  1. Field 02-CC is a nine-position field that may be present.

  2. Valid conditions are:

    • Entry is blank

    • "P" for the first character followed by eight numeric characters

  3. Field 02-CC is invalid when any of the following conditions are present:

    • Field 02-CC is other than nine numeric digits or a "P" followed by eight digits

    • Contains all zeroes

    • Contains all nines

    • Contains nine numbers

      Note:

      An SSN is no longer valid in Field 02-CC.

  4. Correct Field 02-CC as follows:

    If... Then...
    A valid PTIN is present Enter the PTIN in Field 02-CC, preceded by a "P" .
    An SSN is present (e.g., nine numbers) Delete the entry in Field 02-CC. Use AC "6" .
    Both a valid PTIN and SSN are present Enter the PTIN in Field 02-CC.
    A valid PTIN cannot be located but an EIN is present Enter the EIN in Field 02-DD, and delete the entry in Field 02-CC. Use AC "6" .

Field 02-DD - Preparer EIN

  1. Field 02-DD is a nine-position field that may be present.

  2. Valid conditions are:

    • Entry is blank

    • All numeric (0-9) and not an SSN

  3. Field 02-DD is invalid when any of the following conditions are present:

    • Contains all zeroes

    • Contains all nines

  4. Correct Field 02-DD as follows:

    If... Then...
    An EIN is present Enter the EIN in Field 02-DD
    Only a valid PTIN is present Enter the PTIN in Field 02-CC, and delete the entry in Field 02-DD. Use AC "6."
    Only a valid SSN is present Delete the SSN in Field 02-DD and do not enter anything in Field 02-CC. Use AC "6."
    Both a valid PTIN and SSN are present Enter the PTIN in Field 02-CC, and delete the entry in Field 02-DD. Use AC "6" .

Field 02-EE - {RESERVED} Preparer Phone Number

  1. This field is auto-filled with all "zeros" (0).

  2. Field 02-EE is a 10-position numeric field.

Field 02-FF - U.S. Decedent Transfer (Line 4f)

  1. Field 02-FF is a one-position field that must be present if there are entries in Fields 02-R through 02-AA (Lines 4a through 4e).

  2. Valid characters are:

    • "1" - Transfer by reason of death (first checkbox is checked)

    • "2" - Owner of a foreign trust prior to death (second checkbox is checked)

    • "3" - Assets included in estate (third checkbox is checked)

    • Blank - None of the boxes are checked

  3. Field 02-FF is invalid if entry is not "1" , "2" , "3" or "blank" .

  4. If Field 02-FF is present and Lines 4a through 4e are not complete, correspond for the information using Letter 3653C. If no reply, enter CCC "3" in Field 01-G.

Section 03 - Form 3520

  1. Section 03 alpha field designators, maximum field lengths, titles and return locations are as follows:

    Alpha Designator Field Length Title Location on Return
    03-A 40 Name of Trust Creator Line 5a
    03-B 35 Street Address Line 5b
    03-C 22 City Line 5b
    03-D 2 State Line 5b
    03-E 12 ZIP Code Line 5b
    03-F 2 Country Code Line 5b
    03-G 1 TIN Type Line 5c, edited after the TIN
    03-H 9 TIN Line 5c
    03-I 2 Country Code - Trust Created Line 6a
    03-J 2 Country Code - Law Governs Trust Line 6b
    03-K 8 Date Trust Created Line 6c
    03-L 1 YES - NO Checkbox Line 7a
    03-M 40 Name Other Trust Owners Line 7b(i)1
    03-N 35 Street Address Line 7b(ii)1
    03-O 22 City Line 7b(ii)1
    03-P 2 State Line 7b(ii)1
    03-Q 12 ZIP Code Line 7b(ii)1
    03-R 2 Country Code Line 7b(iii)1
    03-S 1 TIN Type Line 7b(iv)1, edited after the TIN
    03-T 9 TIN Line 7b(iv)1
    03-U 9 Code Section Line 7b(v)1
    03-V 1 Indicator: More Than One Other Owner Right Margin, Line 7b(v)2

Field 03-A - Name of Trust Creator (Line 5a)

  1. Field 03-A is a 40-position field that may be present.

  2. Field 03-A must have an entry if "1" is present in Field 01-K.

  3. See IRM 3.22.19.7.10(2) for correction procedures.

Field 03-B - Trust Creator's Street Address (Line 5b)

  1. Field 03-B is a 35-position file that may be present.

Field 03-C - Trust Creator's City (Line 5b)

  1. Field 03-C is a 22-position field that may be present.

Field 03-D - Trust Creator's State (Line 5b)

  1. Field 03-D is a two-position field that may be present.

Field 03-E - Trust Creator's ZIP Code (Line 5b)

  1. Field 03-E is a 12-position field that may be present.

Field 03-F - Trust Creator's Country Code (Line 5c)

  1. Field 03-F is a two-position field that may be present.

    Caution:

    Always use the Country Code "CA" for Canada in Section 02 through 20.

Field 03-G - Trust Creator's TIN Type (Line 5c)

  1. Field 03-G is a one-position field that may be present if the entry in Field 03-H is an SSN or ITIN.

    Note:

    If Line 5c is blank, enter CCC "N" to bypass the EIN requirement.

Field 03-H - Trust Creator's TIN (Line 5c)

  1. Field 03-H is a nine-position field that may be present.

Field 03-I - Trust Creator's Country Code (Line 6a)

  1. Field 03-I is a two-position field that must be present if there is an entry in Field 01-K, 01-L or 01-M.

    Caution:

    Always use the Country Code "CA" for Canada in Section 02 through 20.

  2. If Country Code is missing but present on Page 1 Line 2g, enter from line 2g.

Field 03-J - Law Governs Trust Country Code (Line 6b)

  1. Field 03-J is a two-position field that must be present if there is an entry in Field 01-K, 01-L or 01-M.

    Caution:

    Always use the Country Code "CA" for Canada in Section 02 through 20.

Field 03-K - Date Trust Created (Line 6c)

  1. Field 03-K is an eight-position field that must be present if there is an entry in Field 01-K, 01-L or 01-M.

  2. Valid characters are numeric (0-9) only.

  3. Field 03-K is invalid when any of the following conditions are present:

    • Field contains less than eight digits

    • It is not in the proper YYYYMMDD format

    • It is a future date

    • The month is not 01-12 or the day is not 01-31, depending upon the month

    Month Day
    01, 03, 05, 07, 08, 09, 10 and 12 01-31
    04, 06, 09 and 11 01-30
    02 01–28 (29 in leap year)
  4. If the taxpayer does not write a complete date on a transcribed line or it was not coded, ISRP will enter periods (....) to take the place of the missing date digits.

    Figure 3.22.19-8

    This is an Image: 34033008.gif
     

    Please click here for the text description of the image.

  5. When the day, month or year is missing and is required, enter the missing data as follows:

    • Missing day - Enter "01"

    • Missing month - Enter "01"

    • Missing year - Enter the year of the tax period

  6. The following table contains examples of incomplete dates on Error Register or on IDRS.

    When ISRP enters It means, Therefore,
    .... the year is required, but missing enter the 4-digit year (e.g., 2017)
    2017.. the taxpayer entered the year without the month enter the 2-digit month between 01-12 (e.g., 201711)
    2017.... the taxpayer entered the year without the month or day enter the 2-digit month between 01-12, or the 2-digit day between 01-31 (e.g., 20170101)
    ....11 the taxpayer entered the month without the year enter the 4-digit year (e.g., 201711 )
    ....1101 the taxpayer entered the month and day, but without the year enter the 4-digit year (e.g., 20171101 )
    ....11.. the taxpayer entered the month without the year or day enter the 4-digit year and the 2-digit day (e.g., 20171101)

Field 03-L - "Yes - No" Checkbox: Other Owners of Transferred Assets (Line 7a)

  1. Field 03-L is a one-position field that may be present.

  2. See IRM 3.22.19.26.2.3 for correction procedures.

Field 03-M - Other Owner Name (Line 7b(i))

  1. Field 03-M is a 40-position field that may be present if there is an entry of "1" in Field 03-L.

  2. See IRM 3.22.19.7.10 (2) for correction procedures.

Field 03-N - Other Owner Street Address (Line 7b(ii))

  1. Field 03-N is a 35-position field that may be present if there is an entry of "1" in Field 03-L.

Field 03-O - Other Owner City (Line 7b(ii))

  1. Field 03-O is a 22-position field that may be present if there is an entry of "1" in Field 03-L.

Field 03-P - Other Owner State (Line 7b(ii))

  1. Field 03-P is a two-position field that may be present if there is an entry of "1" in Field 03-L.

Field 03-Q - Other Owner ZIP Code (Line 7b(ii))

  1. Field 03-Q is a 12-position field that may be present if there is an entry of "1" in Field 03-L.

Field 03-R - Other Owner Country Code of Residence (Line 7b(iii))

  1. Field 03-R is a two-position field that may be present.

    Caution:

    Always use the Country Code "CA" for Canada in Section 02 through 20.

  2. See IRM 3.22.19.7.8 (2) for correction procedures.

Field 03-S - Other Owner TIN Type (Line 7b(iv))

  1. Field 03-S is a one-position field that must be present if a SSN or ITIN is present in Field 03-T.

Field 03-T - Other Owner TIN (Line 7b(iv))

  1. Field 03-T is a nine-position field that must be present if there is an entry of "1" in Field 03-L.

Field 03-U - Other Owner Relevant Code Section (Line 7b(v))

  1. Field 03-U is a nine-position field that may be present if there is an entry of "1" in Field 03-L.

  2. Valid characters are alpha (a-z), numeric (0-9), ampersand (&), hyphen (-) and blank.

  3. Correct coding and transcription errors. If no entry, leave blank.

Field 03-V - More Than One "Other" Owner Indicator

  1. Field 03-V is a one-position field that must be present if there is more than one owner present in Field 03-U.

  2. Valid characters are "1" and blank.

    If... Then...
    Only one entry on Line 7b Leave Field 03-V blank.
    More than one entry on Line 7b Enter "1" in Field 03-V.

Section 04 - Form 3520

  1. Section 04 alpha field designators, maximum field lengths, titles and return locations are as follows:

    Alpha Designator Field Length Title Location on Return
    04-A 1 Yes - No Checkbox Line 8
    04-B 1 Yes - No Checkbox Line 9a
    04-C 1 Yes - No Checkbox Line 9b
    04-D 1 Yes - No Checkbox Line 10
    04-E 1 Yes - No Checkbox Line 11a
    04-F 1 Yes - No Checkbox Line 11b
    04-G 8 Date of Transfer Line 11b(i)1
    04-H 40 Maximum Term Line 11b(ii)1
    04-I 12 Yield to Maturity Line 11b(iii)1
    04-J 12 FMV Line 11b(iv)1
    04-K 8 Date of Transfer Line 11b(i)2
    04-L 40 Maximum Term Line 11b(ii)2
    04-M 12 Yield to Maturity Line 11b(iii)2
    04-N 12 FMV Line 11b(iv)2
    04-O 8 Date of Transfer Line 11b(i)3
    04-P 40 Maximum Term Line 11b(ii)3
    04-Q 12 Yield to Maturity Line 11b(iii)3
    04-R 12 FMV Line 11b(iv)3
    04-S 1 Indicator - More Than 3 Entries Right Margin, Line 11b(iv)3
    04-T 1 Yes - No Checkbox Line 12

Field 04-A - "Yes - No" Checkbox: Transfer Completed (Line 8)

  1. Field 04-A is a one-position field that may be present. If Field 04-A contains an entry then Field 04-B, 04-C and 04-D must be completed.

  2. See IRM 3.22.19.7.9 (2) for correction procedures.

Field 04-B - "Yes - No" Checkbox: Benefit to U.S. Beneficiary (Line 9a)

  1. Field 04-B is a one-position field that may be present.

  2. See IRM 3.22.19.7.9 (2) for correction procedures.

Field 04-C - "Yes - No" Checkbox: Can Trust be Revised to Benefit U.S. Beneficiary (Line 9b)

  1. Field 04-C is a one-position field that may be present.

  2. See IRM 3.22.19.7.9 (2) for correction procedures.

Field 04-D - "Yes - No" Checkbox: Continue as Owner After Transfer (Line 10)

  1. Field 04-D is a one-position field that may be present.

  2. See IRM 3.22.19.7.9 (2) for correction procedures.

Field 04-E - "Yes - No" Checkbox: Transfer in Exchange for Obligation (Line 11a)

  1. Field 04-E is a one-position field that may be present.

  2. Valid characters are "1" , "2" , "3" and blank.

    • If the "Yes" checkbox is checked then Schedule A must contain entries.

    • If the "No" checkbox is checked then Schedule B must contain entries.

    If... Then...
    The "Yes" box is checked Enter "1" in Field 02-I.
    The "No" box is checked Enter "2" in Field 02-I.
    Both boxes are checked Enter "3" in Field 02-I.
    Neither box is checked Delete the entry from Field 02-I.

Field 04-F - "Yes - No" Checkbox: Qualified Obligation (Line 11b)

  1. Field 04-F is a one-position field that may be present.

  2. See IRM 3.22.19.9.5 (2) for correction procedures.

Field 04-G - Date of Transfer (Line 11b(i))

  1. Field 04-G is an eight-position field that may be present.

  2. See IRM 3.22.19.8.11 for correction procedures.

Field 04-H - Maximum Term (Line 11b(ii))

  1. Field 04-H is a 40-position field that may be present.

  2. Valid characters are alpha (a-z) and numeric (0-9).

  3. Correct coding and transcription errors. However, if no entry is present on return, blank the field.

Field 04-I- Yield to Maturity (Line 11b(iii))

  1. Field 04-I is a 12-position field that may be present.

  2. Valid characters are alpha (a-z) and numeric (0-9).

  3. Correct coding and transcription errors. However, if no entry is present on the return, blank the field.

Field 04-J - Fair Market Value (FMV) of Obligation (Line 11b(iv))

  1. Field 04-J is a 12-position field that may be present.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

  4. Correct coding and transcription errors. However, if no entry is present on the return, blank the field.

Field 04-K - Date of Transfer (Line 11b(i))

  1. Field 04-K is an eight-position field that may be present.

  2. See IRM 3.22.19.8.11 for correction procedures.

Field 04-L - Maximum Term (Line 11b(ii))

  1. Field 04-L is a 40-position field that may be present.

  2. Valid characters are alpha (a-z) and numeric (0-9).

  3. Correct coding and transcription errors. However, if no entry is present, leave it blank.

Field 04-M - Yield to Maturity (Line 11b(iii))

  1. Field 04-M is a 12-position field that may be present.

  2. Valid characters are alpha (a-z) and numeric (0-9).

  3. Correct coding and transcription errors. However, if no entry is present, leave it blank.

Field 04-N - Fair Market Value (FMV) of Obligation (Line 11b(iv))

  1. Field 04-N is a 12-position field that may be present.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

  4. Correct coding and transcription errors. However, if no entry is present, leave it blank.

Field 04-O - Date of Transfer (Line 11b(i))

  1. Field 04-O is an eight-position field that may be present.

  2. See IRM 3.22.19.8.11 (6) for correction procedures.

Field 04-P - Maximum Term (Line 11b(ii))

  1. Field 04-P is 40-position field that may be present.

  2. Valid characters are alpha (a-z) and numeric (0-9).

  3. Correct coding and transcription errors. However, if no entry is present, leave it blank.

Field 04-Q - Yield to Maturity (Line 11b(iii))

  1. Field 04-Q is a 12-position field that may be present.

  2. Valid characters are alpha (a-z) and numeric (0-9).

  3. Correct coding and transcription errors. However, if no entry is present, leave it blank.

Field 04-R - Fair Market Value (FMV) of Obligation (Line 11b(iv))

  1. Field 04-R is 12-position field that may be present.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

  4. Correct coding and transcription errors. However, if no entry is present, leave it blank.

Field 04-S - More Than Three Obligations of a Related Trust Indicator

  1. Field 04-S is a one-position field that must be present if there are more than three entries reported on Schedule A (Line 11b(i)) or an attachment.

  2. Valid characters are "1" and blank.

    If... Then...
    Three or fewer entries on Line 11b(1) or on an attachment Leave Field 04-S blank.
    More than three entries on Line 11b(1) or on an attachment Enter "1" in Field 04-S.

Field 04-T - "Yes - No" Checkbox: Extend Assessment (Line 12)

  1. Field 04-T is a one-position field that may be present.

  2. See IRM 3.22.19.7.9 (2) for correction procedures.

Section 05 - Form 3520

  1. Section 05 alpha field designators, maximum field lengths, titles and return locations are as follows:

    Alpha Designator Field Length Title Location on Return
    05-A 1 Yes - No Checkbox Line 13
    05-B 8 Date of Transfer Line 13(a)1
    05-C 40 Description of Property Transferred Line 13(b)1
    05-D 12 FMV: Property Transferred Line 13(c)1
    05-E 12 U.S. Adjusted Basis Line 13(d)1
    05-F 12 Gain at Transfer Line 13(e)1
    05-G 12 Excess: 13(c)1 Minus 13((d)1 Minus 13(e)1 Line 13(f)1
    05-H 40 Description of Property Line 13(g)1
    05-I 12 FMV: Property Received Line 13 (h)1
    05-J 12 Excess: 13(c)1 Minus 13(h)1 Line 13(i)1
    05-K 8 Date of Transfer Line 13(a)2
    05-L 40 Description of Property Transferred Line 13(b)2
    05-M 12 FMV: Property Transferred Line 13(c)2
    05-N 12 U.S. Adjusted Basis Line 13(d)2
    05-O 12 Gain at Transfer Line 13(e)2
    05-P 12 Excess: 13(c)2 Minus 13((d)2 Minus 13(e)2 Line 13(f)2
    05-Q 40 Description of Property Line 13(g)2
    05-R 12 FMV: Property Received Line 13(h)2
    05-S 12 Excess: 13(c)2 Minus 13(h)2 Line 13(i)2
    05-T 1 Indicator: More Than 2 Entries Right margin, Line 13(i)3
    05-U 12 Total Excess: (c) Minus (d) Minus (e) Line 13(f)4
    05-V 12 Total Verified  
    05-W 12 Total Excess: (c) Minus (h) Line 13(i)4
    05-X 12 Total Verified  
  2. Entries are required in Schedule B if:

    1. Field 01-K has an entry of "1" indicating there was a direct or indirect transfer of money or property during the year, or

    2. Field 04-E or Field 04-F has an entry of "2" indicating "No" response.

  3. Only the first two lines of data and any totals on Schedule B are transcribed; therefore, only the information on the first two data lines and the total lines require correction.

  4. If there are no transcription errors requiring correction in a required field, then correspond for the information using Letter 3653C. Use Action Code 3.

  5. If the taxpayer does not reply:

    1. Enter CCC "3" in Field 01-G.

    2. Delete the entries in Section 05.

    3. Use Action Code 4.

Field 05-A - "Yes - No" Checkbox: Transfer at Less Than FMV (Line 13)

  1. If Field 05-A has an entry of "1" then there must be an entry in Fields 05-B through 05-U. However, the taxpayer may only have one row entry. See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. See IRM 3.22.19.7.9 (2) for correction procedures.

Field 05-B - Date of Transfer (Line 13, column (a))

  1. Field 05-B is an eight-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. See IRM 3.22.19.8.11 (6) for correction procedures.

Field 05-C - Description of Property (Line 13, column (b))

  1. Field 05-C is a 40-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are alpha (a-z), numeric (0-9), hyphen (-) and blank.

  3. Enter up to forty (40) characters of the data the filer provides on the return or on an attachment.

Field 05-D - FMV of Property Transferred (Line 13, column (c))

  1. Field 05-D is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

Field 05-E - U.S. Adjusted Basis of Property Transferred (Line 13, column (d))

  1. Field 05-E is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

Field 05-F - Gain Recognized at Time of Transfer (Line 13, column (e))

  1. Field 05-F is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

Field 05-G - Excess Gain (Line 13, column (f))

  1. Field 05-G is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

Field 05-H - Description of Property Received (Line 13, column (g))

  1. Field 05-H is a 40-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. See IRM 3.22.19.10.3 (2) for correction procedures.

Field 05-I - FMV of Property Received (Line 13, column (h))

  1. Field 05-I is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

Field 05-J - Excess FMV of Transfers Over Receipts (Line 13, column (i))

  1. Field 05-J is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

Field 05-K - Date of Transfer (Line 13, column (a))

  1. Field 05-K is an eight-position field that may be present. See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. See IRM 3.22.19.8.11 (6) for correction procedures.

Field 05-L - Description of Property Transferred (Line 13, column (b))

  1. Field 05-L is a 40-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

Field 05-M - FMV of Property Transferred (Line 13, column (c))

  1. Field 05-M is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

Field 05-N - U.S. Adjusted Basis of Property Transferred (Line 13, column (d))

  1. Field 05-N is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

Field 05-O - Gain Recognized at Time of Transfer (Line 13, column (e))

  1. Field 05-O is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

Field 05-P - Excess Gain (Line 13, column (f))

  1. Field 05-P is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

Field 05-Q - Description of Property Received (Line 13, column (g))

  1. Field 05-Q is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

Field 05-R - FMV of Property Received (Line 13, column (h))

  1. Valid characters are numeric (0-9) only.

  2. Entry may be positive or negative and dollars only.

  3. See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

Field 05-S - Excess FMV of Transfers Over Receipts (Line 13, column (i))

  1. Valid characters are numeric (0-9) only.

  2. Entry may be positive or negative and dollars only.

  3. See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

Field 05-T - More Than Two Gratuitous Transfers Indicator

  1. Field 05-T is a one-position field that must be present if there are more than two entries reported on Schedule B, Line 13(a) through (i), or an attachment.

  2. Valid characters are "1" and blank.

    If... Then...
    Two or fewer entries on Line 13 or on an attachment, Leave Field 05-T blank, or remove erroneous entry in Filed 05-T.
    More than two entries on Line 13 or on an attachment, Enter "1" in Field 05-T.

Field 05-U - Total Excess Gain (Line 13, Totals (f))

  1. Field 05-U is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

  4. Compute the total of column (f) by combining the entries present in the first two lines of column (f).

Field 05-V - Total Excess Gain Verified

  1. Field 05-V is a 12-position field that will be present if there is an entry in Field 05-U and Field 05-T is blank.

  2. Math errors are identified by underprinting the taxpayer's Field 05-U entry.

  3. Field 05-U is underprinted with the program-generated Total Excess Gain differs from the transcribed (the filer's entry) amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. Compare the entries in Fields 05-G and 05-P with the filer’s figures on the return and correct any transcription errors.

  5. If transcription is correct and Field 05-U is out of tolerance,

    1. Recompute the taxpayer figure and enter the correct amount in Field 05-V. Move the underprinted amount to Field 05-U.

    2. Enter Action Code "6" . See Figure 3.22.19-9.

    Figure 3.22.19-9

    This is an Image: 34033009.gif
     

    Please click here for the text description of the image.

Field 05-W - Total Excess FMV Transfers Over Receipts (Line 13, Totals (i))

  1. Field 05-W is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

  4. Compute the total of column (i) by combining the entries present in the first two lines of column (i).

Field 05-X - Total Excess Transfers Over Receipts Verified

  1. Field 05-X is a 12-position field that will be present if there is an entry in Field 05-W and Field 05-T is blank. See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Math errors are identified by underprinting the taxpayer's Field 05-W entry.

  3. Field 05-W is underprinted with the program-generated Total Excess Transfers Over Receipts differs from the transcribed (the filer's entry) amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Field 05-X will not be present if Field 05-T has an entry of "1" .

  4. Compare the entries in Fields 05-J and 05-S with the filer's figures on the return and correct any transcription errors.

  5. If transcription is correct and Field 05-W is out of tolerance,

    1. Recompute the taxpayer figure and enter the correct amount in Field 05-X. Move the underprinted amount to Field 05-W.

    2. Enter Action Code "6" .

Section 06- Form 3520

  1. Section 06 alpha field designators, maximum field lengths, titles and return locations are as follows:

    Alpha Designator Field Length Title Location on Return
    06-A 1 YES - NO Checkbox: Sale Document Copy Line 14a
    06-B 4 Year Previously Attached Sale Document Copy Line 14a
    06-C 1 YES - NO Checkbox: Loan Document Copy Line 14b
    06-D 4 Year Previously Attached: Loan Document Copy Line 14b
    06-E 1 YES - NO Checkbox: Change Documents Line 14c
    06-F 4 Year Previously Attached: Change Documents Line 14c

Field 06-A - "Yes - No" Checkbox: Sale Document Attached (Line 14a)

  1. Field 06-A is a one-position field that must be present if Field 05-A has an entry of "1" .

  2. Valid characters are:

    • "1" indicates "Yes"

    • "2" indicates "No"

    • "3" indicates "Previously Attached"

    • "Blank" indicates no entry

  3. Error Condition:

    • Field 05-A is a "2" or blank and an entry is present in Fields 06-A through 06-F.

    • Field 06-A is not 1, 2, 3, or blank.

    • An entry appears in Field 06-B, and Field 06-A is not a 1

    :

  4. Correction Procedure:

    If there are no transcription errors requiring correction in a required field, then correspond for the information using Letter 3653C. Use Action Code 3.

  5. If the taxpayer does not reply:

    1. Enter CCC "3" in Field 01-G.

    2. Delete the entries in Section 06.

    3. Use Action Code 4.

Field 06-B - Year Attached (Line 14a)

  1. Field 06-B is a four-position field that must be present.

  2. Valid characters are numeric (0-9) only in YYYY format.

  3. If the filer checked the "Attached Previously" checkbox, then the year the document was previously attached must be completed. Enter the year in "YYYY" format in Field 06-B.

  4. Error Condition:

    • Field 06-A has an entry of "2 or 3" and an entry is present in Field 06-B.

    • Field 06-B is not in YYYY format.

    • An entry appears in Field 06-B, and Field 06-A is not a 1.

  5. Correction Procedure:

    If there are no transcription errors requiring correction in a required field, then correspond for the information using Letter 3653C. Use Action Code 3.

  6. If the taxpayer does not reply:

    1. Enter CCC "3" in Field 01-G.

    2. Delete the entries in Section 06.

    3. Use Action Code 4 or 7.

Field 06-C - "Yes - No" Checkbox: Loan Document Attached (Line 14b)

  1. Field 06-C is a one-position field that may be present.

  2. See IRM 3.22.19.11.1 (4) for correction procedures.

Field 06-D - Year Attached (Line 14b)

  1. Field 06-D is a four-position field that must be present if Field 06-C has an entry of "3" .

  2. Valid characters are numeric (0-9) only in YYYY format.

  3. See IRM 3.22.19.11.2 (5) for correction procedures.

Field 06-E - "Yes - No" Checkbox: Variances to Original Document(s) (Line 14c)

  1. Field 06-E is a one-position field that may be present.

  2. See IRM 3.22.19.11.1 (4) for correction procedures.

Field 06-F - Year Attached (Line 14c)

  1. Field 06-F is a four-position field that must be present if Field 06-E has an entry of "3" .

  2. Valid characters are numeric (0-9) only in YYYY format.

  3. See IRM 3.22.19.11.2 (5) for correction procedures.

Section 07 - Form 3520

  1. Section 07 alpha field designators, maximum field lengths, titles and return locations are as follows:

    Alpha Designator Field Length Title Location on Return
    07-A 40 Name of Beneficiary Line 15(a)1
    07-B 35 Street Address Line 15(b)1
    07-C 22 City Line 15(b)1
    07-D 2 State Line 15(b)1
    07-E 12 ZIP Code Line 15(b)1
    07-F 2 Country Code Line 15(b)1
    07-G 1 YES - NO Checkbox: U.S. Beneficiary Line 15(c)1
    07-H 1 TIN Type Line 15(d)1, edited after the TIN.
    07-I 9 TIN Line 15(d)1
    07-J 40 Name of Beneficiary Line 15(a)2
    07-K 35 Street Address Line 15(b)2
    07-L 22 City Line 15(b)2
    07-M 2 State Line 15(b)2
    07-N 12 ZIP Code Line 15(b)2
    07-O 2 Country Code Line 15(b)2
    07-P 1 YES - NO Checkbox U.S. Beneficiary Line 15(c)2
    07-Q 1 TIN Type Line 15(d)2, edited after the TIN
    07-R 9 TIN Line 15(d)2
    07-S 40 Name of Beneficiary Line 15(a)3
    07-T 35 Street Address Line 15(b)3
    07-U 22 City Line 15(b)3
    07-V 2 State Line 15(b)3
    07-W 12 ZIP Code Line 15(b)3
    07-X 2 Country Code Line 15(b)3
    07-Y 1 YES - NO Checkbox: U.S. Beneficiary Line 15(c)3
    07-Z 1 TIN Type Line 15(d)3, edited after the TIN
    07-AA 9 TIN Line 15(d)3
    07-BB 1 Indicator: More Than 3 Entries Margin, right of 15(d)4
  2. Section 07 represents the filer's entries to Line 15, columns (a) through (d) regarding the trust’s beneficiaries.

  3. Fields 07-A through 07-BB must be completed only if the entry in Field 02-I is "2" or Field 02-J through 02-Q are not present.

  4. If present, enter the information for the first three (3) beneficiaries provided by the filer.

  5. Correction Procedure:

    If there are no transcription errors requiring correction in a required field, then correspond for the information using Letter 3653C. Use Action Code 3.

  6. If the taxpayer does not reply:

    1. Enter CCC "3" in Field 01-G.

    2. Delete the entries in Section 07.

    3. Use Action Code 4.

Field 07-A - Name of Beneficiary (Line 15, column (a))

  1. Field 07-A is a 40-position field that may be present.

  2. Valid characters are alpha (a-z), numeric (0-9), ampersand (&), hyphen (-) and blank.

  3. Correct and invalid or incomplete entry.

  4. In some instances, the filer will indicate a "class" of beneficiary (e.g., grandchildren) rather than a name of a beneficiary. Enter the information provided by the filer in column (a).

Field 07-B - Street Address (Line 15, column (b))

  1. Field 07-B is a 35-position field that may be present.

Field 07-C - City (Line 15, column (b))

  1. Field 07-C is a 22-position field that may be present.

Field 07-D - State/Province (Line 15, column (b))

  1. Field 07-D is a two-position field that may be present.

Field 07-E - ZIP Code (Line 15, column (b))

  1. Field 07-E is a 12-position field that may be present.

Field 07-F - Country Code (Line 15, column (b))

  1. Field 07-F is a two-position field that may be present.

  2. Always use the Country Code "CA" for Canada in Section 02 through 20.

Field 07-G - "Yes - No" Checkbox: U.S. Beneficiary (Line 15, column (c))

  1. Field 07-G is a one-position field that may be present.

  2. Valid characters are "1" , "2" and blank.

    • "1" indicates "Yes"

    • "2" indicates "No"

    • "Blank" indicates no entry

Field 07-H - TIN Type (Line 15, column (d))

  1. Field 07-H is a one-position field that must be present if the entry in Field 07-I is an SSN or ITIN. See IRM 3.22.19.12 (5) for further instructions.

Field 07-I - Identification Number (TIN) (Line 15, column (d))

  1. Field 07-I is a nine-position field that may be present.

Field 07-J - Name of Beneficiary (Line 15, column (a))

  1. Field 07-J is a 40-position field that may be present.

Field 07-K - Street Address (Line 15, column (b))

  1. Field 07-K is a 35-position field that may be present.

Field 07-L - City (Line 15, column (b))

  1. Field 07-L is a 22-position field that may be present.

Field 07-M - State/Province (Line 15, column (b))

  1. Field 07-M is a two-position field that may be present.

Field 07-N - ZIP Code (Line 15, column (b))

  1. Field 07-N is a 12-position field that may be present.

Field 07-O - Country Code (Line 15, column (b))

  1. Field 07-O is a two-position field that may be present.

  2. Always use the Country Code "CA" for Canada in Section 02 through 20.

Field 07-P - Yes - No Checkbox: U.S. Beneficiary (Line 15, column (c))

  1. Field 07-P is a one-position field that may be present.

  2. See IRM 3.22.19.12.7 (2) for correction procedures.

Field 07-Q - TIN Type (Line 15, column (d))

  1. Field 07-Q is a one-position field that must be present if the entry in Field 07-R is an SSN or ITIN. See IRM 3.22.19.12 (5) for further instructions.

Field 07-R - Identification Number (TIN) (Line 15, column (d))

  1. Field 07-R is a nine-position field that may be present.

Field 07-S - Name of Beneficiary (Line 15, column (a))

  1. Field 07-S is a 40-position field that may be present.

Field 07-T - Street Address (Line 15, column (b))

  1. Field 07-T is a 35-position field that may be present.

Field 07-U - City (Line 15, column (b))

  1. Field 07-U is a 22-position field that may be present.

Field 07-V - State/Province (Line 15, column (b))

  1. Field 07-V is a two-position field that may be present.

Field 07-W - ZIP Code (Line 15, column (b))

  1. Field 07-W is a 12-position field that may be present.

Field 07-X - Country Code (Line 15, column (b))

  1. Field 07-X is a two-position field that may be present.

  2. Always use the Country Code "CA" for Canada in Section 02 through 20.

Field 07-Y - "Yes - No" Checkbox: U.S. Beneficiary (Line 15, column (c))

  1. Field 07-Y is a one-position field that may be present.

  2. See IRM 3.22.19.12.7 (2) for correction procedures.

Field 07-Z - TIN Type (Line 15, column (d))

  1. Field 07-Z is a one-position field that must be present if the entry in Field 07-AA is an SSN or ITIN. See IRM 3.22.19.12 (5) for further instructions.

Field 07-AA - Identification Number (TIN) (Line 15, column (d))

  1. Field 07-AA is a nine-position field that may be present.

Field 07-BB - More Than Three Beneficiaries Indicator

  1. Field 07-BB is a one-position field that must have an entry if there is information for more than three beneficiaries on Line 15, columns (a) through (d). See IRM 3.22.19.12 (5) for further instructions.

  2. Valid characters are "1" and blank.

    If... Then...
    Three or fewer entries on Line 15 or on an attachment, Leave Field 07-BB blank.
    More than three entries on Line 15 or on an attachment, Enter "1" in Field 07-BB.

Section 08 - Form 3520

  1. Section 08 alpha field designators, maximum field lengths, titles and return locations are as follows:

    Alpha Designator Field Length Title Location on Return
    08-A 40 Name of Trustee Line 16(a)1
    08-B 35 Street Address Line 16(b)1
    08-C 22 City Line 16(b)1
    08-D 2 State Line 16(b)1
    08-E 12 ZIP Code Line 16(b)1
    08-F 2 Country Code Line 16(b)1
    08-G 1 TIN Type Line 16(c)1, edited after the TIN
    08-H 9 TIN Line 16(c)1
    08-I 1 Indicator: More Than One Entry Margin, right of 16(c)2
    08-J 40 Name- Person With Trust Powers Line 17(a)1
    08-K 35 Street Address Line 17(b)1
    08-L 22 City Line 17(b)1
    08-M 2 State Line 17(b)1
    08-N 12 ZIP Code Line 17(b)1
    08-O 2 Country Code Line 17(b)1
    08-P 40 Description of Powers Line 17(c)1
    08-Q 1 TIN Type Line 17(d)1, edited after the TIN
    08-R 9 TIN Line 17(d)1
    08-S 1 Indicator - More Than One Entry Margin, right of Line 17(d)2
    08-T 1 "YES / NO / PREV" Checkbox: Summary Line 18a
    08-U 1 "YES / NO / PREV" Checkbox Trust Instrument Line 18b
    08-V 1 "YES / NO / PREV" Checkbox Memoranda Line 18c
    08-W 1 "YES / NO / PREV" Checkbox Variances Line 18d
    08-X 1 "YES / NO / PREV" Checkbox Financial Statements Line 18e
    08-Y 1 "YES / NO / PREV" Checkbox: Other Trust Documents Line 18f
  2. Section 08 represents the filer's entries on Lines 16, 17 and 18.

  3. Correction Procedure:

    If there are no transcription errors requiring correction in a required field, then correspond for the information using Letter 3653C. Use Action Code 3.

  4. If the taxpayer does not reply:

    1. Enter CCC "3" in Field 01-G.

    2. Delete the entries in Section 08.

    3. Use Action Code 4 or 7.

Field 08-A - Name of Trustee (Line 16, column (a))

  1. Field 08-A is a 40-position field that may be present.

  2. See IRM 3.22.19.7.10 (2) for correction procedures.

Field 08-B - Address of Trustee (Line 16, column (b))

  1. Field 08-B is a 35-position field that may be present.

Field 08-C - City (Line 16, column (b))

  1. Field 08-C is a 22-position field that may be present.

Field 08-D - State (Line 16, column (b))

  1. Field 08-D is a two-position field that may be present.

Field 08-E - ZIP Code (Line 16, column (b))

  1. Field 08-E is a 12-position field that may be present.

Field 08-F - Country Code (Line 16, column (b))

  1. Field 08-F is a two-position field that may be present.

  2. Always use the Country Code "CA" for Canada in Section 02 through 20.

Field 08-G - TIN Type (Line 16, column (d))

  1. Field 08-G is a one-position field that must be present if there is an SSN or ITIN in Field 08-H.

  2. See IRM 3.22.19.13 (3) for correction procedures.

Field 08-H - Taxpayer Identification Number (TIN) (Line 16, column (d))

  1. Field 08-H is a nine-position field that may be present.

Field 08-I - More Than One Trustee Indicator

  1. Field 08-I is a one-position field that must be present if there is more than one entry on Line 16 (Fields 08-A through 08-H) or on an attachment.

  2. Valid characters are "1" and blank.

  3. See IRM 3.22.19.13 (3) for additional instructions.

    If... Then...
    Only one entry on Line 16 or on an attachment, Leave Field 08-I blank.
    More than one entry on Line 16 or on an attachment, Enter "1" in Field 08-I.

Field 08-J - Name of Other Person With Trust Powers (Line 17, column (a))

  1. Field 08-J is a 40-position field that may be present.

  2. See IRM 3.22.19.7.10 (2) for correction procedures.

Field 08-K - Address of Other Person With Trust Powers (Line 17, column (b))

  1. Field 08-K is a 35-position field that may be present.

Field 08-L - City (Line 17, column (b))

  1. Field 08-L is a 22-position field that may be present.

Field 08-M - State (Line 17, column (b))

  1. Field 08-M is a two-position field that may be present.

Field 08-N - ZIP Code (Line 17, column (b))

  1. Field 08-N is a 12-position field that may be present.

Field 08-O - Country Code (Line 17, column (b))

  1. Field 08-O is a two-position field that may be present.

  2. Always use the Country Code "CA" for Canada in Section 02 through 20.

Field 08-P - Description of Powers (Line 17, column (c))

  1. Field 08-P is a 40-position field that may be present.

Field 08-Q - TIN Type (Line 17, column (d))

  1. Field 08-Q is a one-position field that must be present if an SSN or ITIN is in Field 08-R.

  2. See IRM 3.22.19.13 (3) for additional instructions.

Field 08-R - Taxpayer Identification Number (TIN) (Line 17, column (d))

  1. Field 08-R is a nine-position field that may be present.

Field 08-S - More Than One Other Persons With Trust Powers Indicator

  1. Field 08-S is a one-position field that must be present if there is more than one entry reported on Line 17 or on an attachment.

  2. Valid characters are "1" and blank.

  3. See IRM 3.22.19.13 (3) for additional instructions.

    If... Then...
    Only one entry on Line 17 or on an attachment, Leave Field 08-S blank.
    More than one entry on Line 17 or on an attachment, Enter "1" in Field 08-S.

Field 08-T - Checkbox: Summary of Trust Agreements and Understandings (Line 18a)

  1. Field 08-T is a one-position field that may be present.

  2. See IRM 3.22.19.11.1 (4) for correction procedures.

Field 08-U - Checkbox: Trust Instrument Submitted (Line 18b)

  1. Field 08-U is a one-position field that may be present.

  2. See IRM 3.22.19.11.1 (4) for correction procedures.

Field 08-V - Checkbox: Memoranda or Letters of Wishes Submitted (Line 18c)

  1. Field 08-V is a one-position field that may be present.

  2. See IRM 3.22.19.11.1 (4) for correction procedures.

Field 08-W - Checkbox: Variances to Original Trust Documents (Line 18d)

  1. Field 08-W is a one-position field that may be present.

  2. See IRM 3.22.19.11.1 (4) for correction procedures.

Field 08-X - Checkbox: Trust Financial Statements (Line 18e)

  1. Field 08-X is a one-position field that may be present.

  2. See IRM 3.22.19.11.1 (4) for correction procedures.

Field 08-Y - Checkbox: Other Trust Documents (Line 18f)

  1. Field 08-Y is a one-position field that may be present.

  2. See IRM 3.22.19.11.1 (4) for correction procedures.

Section 11- Form 3520

  1. Section 11 alpha field designators, maximum field lengths, titles and locations on the return are as follows:

    Alpha Designator Field Length Title Location on Return
    11-A 1 YES - NO Checkbox: Qualified Obligation Line 19
    11-B 8 Date Line 19(a)1
    11-C 4 Tax Year First Reported Line 19(b)1
    11-D 12 Principal Payments During Year Line 19(c)1
    11-E 12 Interest Payments During Year Line 19(d)1
    11-F 1 YES - NO Checkbox Still Qualified Obligation Line 19(e)1
    11-G 8 Date Line 19(a)2
    11-H 4 Tax Year First Reported Line 19(b)2
    11-I 12 Principal Payments During Year Line 19(c)2
    11-J 12 Interest Payments During Year Line 19(d)2
    11-K 1 YES - NO Checkbox: Still Qualified Obligation Line 19(e)2
    11-L 1 Indicator: More Than Two Obligations Margin, edited to the right of Line 19(e)3

Field 11-A - "Yes - No" Checkbox: Outstanding Obligation of Related Trust (Line 19)

  1. Field 11-A is a one-position field that may be present.

  2. See IRM 3.22.19.12.7 (2) for correction procedures.

Field 11-B - Date of Original Obligation (Line 19, column (a))

  1. Field 11-B is an eight-position field that may be present.

  2. See IRM 3.22.19.8.11 (6) for correction procedures.

Field 11-C - Year First Reported (Line 19, column (b))

  1. Field 11-C is a four-position field that may be present.

  2. Valid characters are numeric (0-9) only and in YYYY format.

  3. Field is invalid if any of the following conditions are present:

    • Less than 4 digits

    • Not in the proper YYYY format

    • It is a future year

  4. Correct incomplete and invalid entries using information on return or on an attachment.

  5. If information is not available, leave field blank.

Field 11-D - Principal Payments Made During Tax Year (Line 19, column (c))

  1. Field 11-D is a 12-position field that may be present.

Field 11-E - Interest Payments Made During Tax Year (Line 19, column (d))

  1. Field 11-E is a 12-position field that may be present.

Field 11-F - "Yes - No" Checkbox: Obligation a Qualified Obligation (Line 19, column (e))

  1. Field 11-F is a one-position field that may be present.

  2. See IRM 3.22.19.11.1 (4) for correction procedures.

Field 11-G - Date of Original Obligation (Line 19, column (a))

  1. Field 11-G is an eight-position field that may be present.

  2. See IRM 3.22.19.8.11 (6) for correction procedures.

Field 11-H - Tax Year First Reported (Line 19, column (b))

  1. Field 11-H is a four-position field that may be present.

Field 11-I - Principal Payments Made During Tax Year (Line 19, column (c))

  1. Field 11-I is a 12-position field that may be present.

Field 11-J - Interest Payments Made During Tax Year (Line 19, column (d))

  1. Field 11-J is a 12-position field that may be present.

Field 11-K - "Yes - No" Checkbox: Obligation a Qualified Obligation (Line 19, column (e))

  1. Field 11-K is a one-position field that may be present.

  2. See IRM 3.22.19.11.1 (4) for correction procedures.

Field 11-L - More Than One Qualified Obligations Indicator

  1. Field 11-L is a one-position field that must be present if there is more than one entry on Line 19 (Fields 11-A through 11-K) or on an attachment.

  2. Valid characters are "1" and blank.

    If... Then...
    Only one entry on Line 19 or on an attachment, Leave Field 11-L blank.
    More than one entry on Line 19 or on an attachment, Enter "1" in Field 11-L.

Section 12 - Form 3520

  1. Section 12 alpha field designators, maximum field lengths, titles and locations on the return are as follows:

    Alpha Designator Field Length Title Location on Return
    12-A 40 Name Other Foreign Trust Owners Line 20(a)1
    12-B 35 Street Address Line 20(b)1
    12-C 22 City Line 20(b)1
    12-D 2 State Line 20(b)1
    12-E 12 ZIP Code Line 20(b)1
    12-F 2 Country Code Line 20(c)1
    12-G 1 TIN Type Line 20(d)1, edited after the TIN
    12-H 9 TIN Line 20(d)1
    12-I 9 Relevant Code Section Line 20(e)1
    12-J 1 Indicator: More Than One Entry Margin, right of Line 20(e)2
    12-K 2 Country Code: Trust Created Line 21(a)1
    12-L 2 Country Code: Law Govern Line 21(b)1
    12-M 8 Date Trust Created Line 21(c)1
    12-N 1 YES - NO Checkbox: Copy of 3520-A Line 22
    12-O 12 Gross Value Your Portion of Foreign Trust Line 23

Field 12-A - Name of Other Foreign Trust Owners (Line 20, column (a))

  1. Field 12-A is a 40-position field that must be present if there is an entry of "1" in Field 01-L.

  2. See IRM 3.22.19.7.10 (2) for correction procedures.

Field 12-B - Street Address of Other Foreign Trust Owners (Line 20, column (b))

  1. Field 12-B is a 35-position field that may be present.

Field 12-C - City of Other Foreign Trust Owners (Line 20, column (b))

  1. Field 12-C is a 22-position field that may be present.

Field 12-D - State of Other Foreign Trust Owners (Line 20, column (b))

  1. Field 12-D is a two2-position field that may be present.

Field 12-E - ZIP Code of Other Foreign Trust Owners (Line 20, column (b))

  1. Field 12-E is a 12-position field that may be present.

Field 12-F - Country of Residence Country Code (Line 20, column (c))

  1. Field 12-F is a two-position field that may be present.

    Caution:

    Always use the Country Code "CA" for Canada in Section 02 through 20.

Field 12-G - TIN Type (Line 20, column (d))

  1. Field 12-G is a one-position field that must be present if an SSN or ITIN is present in Field 12-H.

Field 12-H - Taxpayer Identification Number (TIN) (Line 20, column (d))

  1. Field 12-H is a nine-position field that may be present.

Field 12-I - Relevant Code Section (Line 20, column (e))

  1. Field 12-I is a nine-position field that may be present.

  2. Valid characters are alpha (a-z), numeric (0-9), period (.), parenthesis (), hyphen (-) and blank.

  3. If Field 03-L has an entry of "1" , then Field 12-I must be present. Use Letter 3653C to correspond for the missing information. Use Action Code 3.

Field 12-J - More Than One U.S. Owner of a Foreign Trust Indicator

  1. Field 12-J is a one-position field that must be present if there is more than one entry shown on Line 20 (Fields 12-A through 12-I).

  2. Valid characters are "1" and blank.

    If... Then...
    Only one entry on Line 20 or on an attachment, Leave Field 12-J blank.
    More than one entry on Line 20 or on an attachment, Enter "1" in Field 12-J.

Field 12-K - Country Code Where Foreign Trust Was Created (Line 21, column (a))

  1. Field 12-K is a two-position field that mat be present.

    Caution:

    Always use the Country Code "CA" for Canada in Section 02 through 20.

Field 12-L - Country Code Whose Law Governs the Foreign Trust (Line 21, column (b))

  1. Field 12-L is a two-position field that may be present.

    Caution:

    Always use the Country Code "CA" for Canada in Section 02 through 20.

Field 12-M - Date Foreign Trust Created (Line 21, column (c))

  1. Field 12-M is an eight-position field that may be present.

  2. See IRM 3.22.19.8.11 (6) for correction procedures.

Field 12-N - "Yes - No" Checkbox: Copy of Trust's Filed Current Year 3520-A (Line 22)

  1. Field 12-N is a one-position field that may be present.

  2. See IRM 3.22.19.12.7 (2) for correction procedures.

Field 12-O - Value of Portion of Foreign Trust You Own (Line 23)

  1. Field 12-O is a 12-position field that may be present.

Section 13 - Form 3520

  1. Section 13 alpha field designators, maximum field lengths, titles and locations on the return are as follows:

    Alpha Designator Field Length Title Location on Return
    13-A 8 Date of Distribution Line 24(a)1
    13-B 40 Description of Property Received Line 24(b)1
    13-C 12 FMV of Property Received Line 24(c)1
    13-D 40 Description of Property Transferred Line 24(d)1
    13-E 12 FMV Property Transferred Line 24(e)1
    13-F 12 Excess Property Received Over Property Transferred Line 24(f)1
    13-G RESERVED RESERVED RESERVED
    13-H 8 Date of Distribution Line 24(a)2
    13-I 40 Description of Property Received Line 24(b)2
    13-J 12 FMV of Property Transferred Line 24(c)2
    13-K 40 Description of Property Transferred Line 24(d)2
    13-L 12 FMV Property Transferred Line 24(e)2
    13-M 12 Excess Property Received Over Property Transferred Line 24(f)2
    13-N RESERVED RESERVED RESERVED
    13-O 8 Date of Distribution Line 24(a)3
    13-P 40 Description of Property Received Line 24(b)3
    13-Q 12 FMV of Property Received Line 24(c)3
    13-R 40 Description of Property Transferred Line 24(d)3
    13-S 12 FMV Property Transferred Line 24(e)3
    13-T 12 Excess Property Received Over Property Transferred Line 24(f)3
    13-U RESERVED RESERVED RESERVED
    13-V 1 Indicator: More Than Three Receipts Margin, edited to the right of Line 24(g)3
    13-W 12 Totals Excess Receipts Over Transfers Line 24(f) Totals
    13-X 12 Totals Excess Receipts Verified  
    13-Y RESERVED RESERVED RESERVED
    13-Z RESERVED RESERVED RESERVED

    If Section 13 is missing (not complete), and there are entries in lines 25 through 53, then enter "2" in Field 01-M to bypass Section 13.

    Note:

    Fields 13-G, 13-N, 13-U, 13-Y, and 13-Z are "Reserved" for use at a later time. These fields will be auto-filled with "zeros" . The error register will also contain these fields.

Field 13-A - Date of Distribution (Line 24, column (a)1)

  1. Field 13-A is an eight-position field that may be present.

  2. See IRM 3.22.19.8.11 (6) for correction procedures.

Field 13-B - Description of Property Received (Line 24, column (b)1)

  1. Field 13-B is a 40-position field that may be present.

Field 13-C - FMV of Property Received (Line 24, column (c)1)

  1. Field 13-C is a 12-position field that may be present.

Field 13-D - Description of Property Transferred (Line 24, column (d)1)

  1. Field 13-D is a 40-position field that may be present.

  2. See IRM 3.22.19.10.3 (2) for correction procedures.

Field 13-E - FMV of Property Transferred (Line 24, column (e)1)

  1. Field 13-E is a 12-position field that may be present.

Field 13-F - Excess of Receipts Over Transfers (Line 24, column (f)1)

  1. Field 13-F is a 12-position field that may be present.

Field 13-H - Date of Distribution (Line 24, column (a)2)

  1. Field 13-H is an eight-position field that may be present.

  2. See IRM 3.22.19.8.11 (6) for correction procedures.

Field 13-I - Description of Property Received (Line 24, column (b)2)

  1. Field 13-I is a 40-position field that may be present.

Field 13-J - FMV of Property Received (Line 24, column (c)2)

  1. Field 13-J is a 12-position field that may be present.

Field 13-K - Description of Property Transferred (Line 24, column (d)2)

  1. Field 13-K is a 40-position field that may be present.

Field 13-L - FMV of Property Transferred (Line 24, column (e)2)

  1. Field 13-L is a 12-position field that may be present.

Field 13-M - Excess of Receipts Over Transfers (Line 24, column (f)2)

  1. Field 13-M is a 12-position field that may be present.

Field 13-O - Date of Distribution (Line 24, column (a)3)

  1. Field 13-O is an eight-position field that may be present.

  2. See IRM 3.22.19.8.11 (6) for correction procedures.

Field 13-P - Description of Property Received (Line 24, column (b)3)

  1. Field 13-P is a 40-position field that may be present.

Field 13-Q - FMV of Property Received (Line 24, column (c)3)

  1. Field 13-Q is a 12-position field that may be present.

Field 13-R - Description of Property Transferred (Line 24, column (d)3)

  1. Field 13-R is a 40-position field that may be present.

Field 13-S - FMV of Property Transferred (Line 24, column (e)3)

  1. Field 13-S is a 12-position field that may be present.

Field 13-T - Excess of Receipts Over Transfers (Line 24, column (f)3)

  1. Field 13-T is a 12-position field that may be present.

Field 13-V - More Than Three Distributions Indicator

  1. Field 13-V is a one-position field that must be present if there are more than three entries on Line 24 (Fields 13-A through 13-U).

  2. Valid characters are "1" and blank.

    If... Then...
    Three or fewer entries on Line 24 or on an attachment, Leave Field 13-V blank.
    More than three entries on Line 24 or on an attachment, Enter "1" in Field 13-V.

Field 13-W - Total Excess Receipts (Column (f))

  1. Field 13-W is a 12-position field that is the total of the entries in column (f) and must be present if there are entries in Fields 13-F, 13-M and/or 13-T.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

  4. The total of column (f) is either the total of the first three lines or the overall "Total" if more than three entries are present on the Line 24.

Field 13-X - Total Excess Receipts Verified

  1. Field 13-X is a 12-position field that will be present if there is an entry in Field 13-W and Fields 13-F, 13-M or 13-T are blank or incorrect.

  2. Math errors are identified by underprinting the taxpayer's Field 13-W entry.

  3. Field 13-W is underprinted when the program-generated Total Excess Receipts differs from the transcribed (the filer's entry) amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. Compare the entries in Fields 13-F, 13-M and 13-T with the filer’s figures on the return and correct any transcription errors.

  5. If transcription is correct and Field 13-W is out of tolerance,

    1. Recompute the taxpayer figure and enter the correct amount in Field 13-X.

    2. Enter Action Code "6" . See Figure 3.22.19-10

    Figure 3.22.19-10

    This is an Image: 34033010.gif
     

    Please click here for the text description of the image.

Section 14 - Form 3520

  1. Section 14 alpha field designators, maximum field lengths, titles and locations on the return are as follows:

    Alpha Designator Field Length Title Location on Return
    14-A 1 YES - NO Checkbox Loan From Foreign Trust Line 25
    14-B 12 FMV Loan Proceeds Line 25(a)1
    14-C 8 Date Loan Transaction Line 25(b)1
    14-D 12 Maximum Term Line 25(c)1
    14-E 4 Interest Rate Line 25(d)1
    14-F 1 YES - NO Checkbox Qualified Obligation Line 25(e)1
    14-G 12 FMV Line 25(f)1
    14-H 12 Trust Distribution Amount Line 25(g)1
    14-I 12 FMV Loan Proceeds Line 25(a)2
    14-J 8 Date Loan Transaction Line 25(b)2
    14-K 12 Maximum Term Line 25(c)2
    14-L 4 Interest Rate Line 25(d)2
    14-M 1 YES - NO Checkbox Qualified Obligation Line 25(e)2
    14-N 12 FMV Line 25(f)2
    14-O 12 Trust Distribution Amount Line 25(g)2
    14-P 1 Indicator: More Than Two Entries Margin, right of Line 25(g)3
    14-Q 12 Total Trust Distribution Line 25(g)4
    14-R 12 Total Trust Distribution Verified  
    14-S 1 YES - NO Checkbox Extend Assessment Period Line 26
    14-T 12 Total Distributions After 08201996 Line 27
    14-U 1 YES - NO Checkbox Trust Obligation Qualified Distribution Line 28

Field 14-A - "Yes - No" Checkbox: Loan Received From Related Foreign Trust (Line 25)

  1. Field 14-A is a one-position field that may be present.

  2. If Field 14-A is checked "Yes" , then filer must complete columns (a) through (g).

  3. See IRM 3.22.19.12.7 (2) for correction procedures.

Field 14-B - FMV of Loan Proceeds (Line 25, column (a))

  1. Field 14-B is a 12-position field that must be present if Field 14-A has an entry of "1" .

Field 14-C - Date of Original Loan Transaction (Line 25, column (b))

  1. Field 14-C is an eight-position field that must be present if Field 14-A has an entry of "1" .

  2. See IRM 3.22.19.8.11 (6) for correction procedures.

Field 14-D - Maximum Repayment Term (Line 25, column (c))

  1. Field 14-D is a three-position field that must be present if Field 14-A has an entry of "1" .

  2. Valid characters are numeric (0-9) only.

    Note:

    If the taxpayer writes down a portion of the year, then consider any portion of a year to be a complete year. (e.g., one year three months, enter "2" ).

  3. Error Condition:

    • Field 14-D has an alpha entry present in Field 14-D.

    • A "1" appears in Field 14-A, and Field 14-D is blank.

  4. Correction Procedure:

    If there are no transcription errors requiring correction in a required field, then correspond for the information using Letter 3653C. Use Action Code 3.

  5. If the taxpayer does not reply:

    1. Enter CCC "3" in Field 01-G.

    2. Delete the entries in Section 14.

    3. Use the applicable Action Code.

Field 14-E - Interest Rate (Line 25, column (d))

  1. Field 14-E is a four-position field that may be present.

  2. Valid characters are numeric (0-9) and NNNN format only.

  3. Do not enter a decimal point.

  4. Enter zeroes to fill blank positions as follows:

    1. 8.5 percent = 0850

    2. 10.25 percent = 1025

    3. .9 percent = 0090

Field 14-F - "Yes - No" Checkbox: Qualified Obligation (Line 26)

  1. Field 14-F is a one-position field that may be present.

  2. See IRM 3.22.19.12.7 (2) for correction procedures.

Field 14-G - FMV of Obligation (Line 25, column (f))

  1. Field 14-G is a 12-position field that may be present.

Field 14-H - Amount Treated as Trust Distribution (Line 25, column (g))

  1. Field 14-H is a 12-position field that may be present.

Field 14-I - FMV of Loan Proceeds (Line 25, column (a))

  1. Field 14-I is a 12-position field that must be present if Field 14-A has an entry of "1" .

Field 14-J - Date of Original Loan Transaction (Line 25, column (b))

  1. Field 14-J is an eight-position field that must be present if Field 14-A has an entry of "1" .

  2. See IRM 3.22.19.8.11 (6) for correction procedures.

Field 14-K - Maximum Repayment Term (Line 25, column (c))

  1. Field 14-K is a three-position field that must be present if Field 14-A has an entry of "1" .

  2. See IRM 3.22.19.17.4 (4) for correction procedures.

Field 14-L - Interest Rate (Line 25, column (d))

  1. Field 14-L is a four-position field that may be present.

Field 14-M - "Yes - No" Checkbox: Qualified Obligation (Line 26)

  1. Field 14-M is a one-position field that may be present.

  2. See IRM 3.22.19.12.7 (2) for correction procedures.

Field 14-N - FMV of Obligation (Line 25, column (f))

  1. Field 14-N is a 12-position field that may be present.

Field 14-O - Amount Treated as Trust Distribution (Line 25, column (g))

  1. Field 14-O is a 12-position field that may be present.

Field 14-P - More than Two Treated as Trust Distributions Indicator

  1. Field 14-P is a one-position field that must be present if there are more than two entries on Line 25 (Fields 14-B through 14-O) or on an attachment.

  2. Valid characters are "1" and blank.

    If... Then...
    Two or fewer entries on Line 25 or on an attachment, Leave Field 14-P blank.
    More than two entries on Line 25 or on an attachment, Enter "1" in Field 14-P.

Field 14-Q - Total Treated as Trust Distributions (Line 25, column (g) (Total))

  1. Field 14-Q is a 12-position field that is the total of the entries in column (g) and must be present if there are entries in Fields 14-H and 14-O.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

  4. Compute the total of column (g) by combining the entries present in the first two lines of column (g).

Field 14-R - Total Trust Distribution Verified

  1. Field 14-R is a 12-position field that will be present if there is an entry in Field 14-Q and Fields 14-H or 14-O is blank.

  2. Math errors are identified by underprinting the taxpayer's Field 14-Q entry.

  3. Field 14-R is underprinted with the program-generated Total Trust Distribution differs from the transcribed (the filer's entry) amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Field 14-R will not be present if the entry in Field 14-P is "1" .

  4. Compare the entries in Fields 14-H and 14-O with the filer's figures on the return and correct any transcription errors.

  5. If transcription is correct and Field 14-Q is out of tolerance,

    1. Recompute the taxpayer figure and enter the correct amount in Field 14-R. Move the underprinted amount to Field 14-Q.

    2. Enter Action Code "6" . See Figure 3.22.19-11.

    Figure 3.22.19-11

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    Please click here for the text description of the image.

Field 14-S - "Yes - No" Checkbox: Agree to Extend Assessment Period (Line 26)

  1. Field 14-S is a one-position field that must be present if Field 14-F has an entry of "1" .

  2. See IRM 3.22.19.12.7 (2) for correction procedures.

Field 14-T - Total Distributions (Line 27)

  1. Field 14-T is a 12-position field that must be present, unless all of the following conditions are present:

    • No entry appears on Line 24 (Section 13 fields) and

    • Line 25, column (e) (Field 14-F) has an entry of "1" (checked "Yes" ) for all entries and/or Line 26 (Field 14-S)) has an entry of "1" (checked "Yes" )

Field 14-U - "Yes - No" Checkbox: Trust Hold Your Outstanding Obligation (Line 28)

  1. Field 14-U is a one-position field that may be present.

  2. See IRM 3.22.19.12.7 (2) for correction procedures.

Section 15 - Form 3520

  1. Section 15 alpha field designators, maximum field lengths, titles and locations on the return are as follows:

    Alpha Designator Field Length Title Location on Return
    15-A 8 Date Line 28(a)1
    15-B 4 Tax Year Line 28(b)1
    15-C 12 Amount Principal Repayments Line 28(c)1
    15-D 12 Amount Interest Payments Line 28(d)1
    15-E 1 YES - NO Checkbox: Qualified Obligation Line 28(e)1
    15-F 8 Date Line 28(a)2
    15-G 4 Tax Year Line 28(b)2
    15-H 12 Amount Principal Repayments Line 28(c)2
    15-I 12 Amount Interest Payments Line 28(d)2
    15-J 1 YES - NO Checkbox: Qualified Obligation Line 28(e)2
    15-K 1 Indicator: More Than Two Entries Margin, edited to the right of Line 28(e)3
    15-L 1 YES - NO Checkbox: Grantor Trust Beneficiary Statement Line 29, page 5
    15-M 1 YES - NO Checkbox Non-grantor Trust Beneficiary Statement Line 30, page 5

Field 15-A - Date of Original Loan Transaction (Line 28, column (a))

  1. Field 15-A is an eight-position field that must be present if Field 14-U has an entry of "1" (Line 28 is checked "Yes" ). The information requested in Fields 15-A through 15-K must be provided.

  2. See IRM 3.22.19.8.11 (6) for correction procedures.

Field 15-B - Year Qualified Obligation First Reported (Line 28, column (b))

  1. Field 15-B is a four-position field that must be present if Field 14-U has an entry of "1" .

Field 15-C - Amount of Principal Payments During Tax Year (Line 28, column (c))

  1. Field 15-C is a 12-position field that must be present if Field 14-U has an entry of "1" .

Field 15-D - Amount of Interest Payments During Tax Year (Line 28, column (d))

  1. Field 15-D is a 12-position field that must be present if Field 14-U has an entry of "1" .

Field 15-E - "Yes - No" Checkbox: Does Loan Meet Qualified Obligation Criteria (Line 28, column (e))

  1. Field 15-E is a one-position field that must be present if Field 14-U has an entry of "1" .

  2. See IRM 3.22.19.12.7 (2) for correction procedures.

Field 15-F - Date of Original Loan Transaction (Line 28, column (a))

  1. Field 15-F is an eight-position field that may be present.

  2. See IRM 3.22.19.8.11 (6) for correction procedures.

Field 15-G - Year Qualified Obligation First Reported (Line 28, column (b))

  1. Field 15-G is a four-position field that may be present.

Field 15-H - Amount of Principal Payments During Tax Year (Line 28, column (c))

  1. Field 15-H is a 12-position field that may be present.

Field 15-I - Amount of Interest Payments During Tax Year (Line 28, column (d))

  1. Field 15-I is a 12 position field that may be present.

Field 15-J - "Yes - No" Checkbox: Does Loan Meet Qualified Obligation Criteria (Line 28, column (e))

  1. Field 15-J is a one-position field that may be present.

  2. See IRM 3.22.19.12.7 (2) for correction procedures.

Field 15-K - More Than Two Outstanding Obligations Indicator

  1. Field 15-K is a one-position field that must be present if there are more than two entries on Line 28, columns (a) through (e) (Fields 15-A through 15-J) or on an attachment.

  2. Valid characters are "1" and blank.

    If... Then...
    Two or fewer entries on Line 28 or on an attachment, Leave Field 15-K blank.
    More than two entries on Line 28 or on an attachment, Enter "1" in Field 15-K.

Field 15-L - "Yes - No" Checkbox: Received Foreign Grantor Trust Beneficiary Statement (Line 29)

  1. Field 15-L is a one-position field that may be present.

  2. Valid characters are "1, 2, 3 or blank."

    Code Definition and Action
    1 "YES"

    Note:

    Section 16, 17 and 18 should be blank when Field 15-M is a "3" . Otherwise, Section 16 will be completed, and maybe Section 18 if Field 16-G is greater than "Zero."

    2 "NO"

    Note:

    Section 16 will be completed, and maybe Section 18 if Field 16-G is greater than "Zero" .

    3 "NOT APPLICABLE"

    Note:

    Although Field 15-L is not applicable, Field 15-M could possibly well be applicable.

    Blank Form 3520, Part 3 (Section 13 through 18) does not apply.
  3. Enter the appropriate number from the table above in Field 15-L to resolve the error condition.

    If... Then...
    Section 16 contains entries (Section 18 may also contain entries if Field 16-G is greater than "Zero" ), Enter "2" in Field 15-L.
    Section 17 contains entries (Section 18 may also contain entries if Field 17-D is greater than "Zero" ), Enter "3" in Field 15-L.
    No box is checked and Section 16, 17 and 18 contain no entries, and Field 15-M is checked "NO" or "Not Applicable" , Enter "1" in Field 15-L.
    No box is checked and Section 16, 17 and 18 contain no entries, and Field 15-M is checked "Not Applicable" , Enter "3" in Field 15-L.

Field 15-M - "Yes - No" Checkbox: Received Foreign Non-grantor Trust Beneficiary Statement (Line 30)

  1. Field 15-M is a one-position field that may be present.

  2. Valid characters are "1, 2, 3 or blank."

    Code Definition and Action
    1 "YES"

    Note:

    Section 16 or 17 will be completed, and maybe Section 18 if Field 16-G or 17-D is greater than "Zero."

    Reminder:

    Field 15-L should be "1 or 3."

    2 "NO"

    Note:

    Section 16 will be completed, and maybe Section 18 if Field 16-G is greater than "Zero," and/or Field 15-L is also a "2."

    3 "NOT APPLICABLE"

    Note:

    Section 16, 17 and 18 should be blank when Field 15-M is a "3."

    Caution:

    If Field 15-L is "1 or 2." then Section 16 or 17 will be completed, and maybe Section 18 if Field 16-G is greater than "Zero."

    Blank Form 3520, Part 3 (Section 13 through 18) does not apply.
  3. Enter the appropriate number from the table below in Field 15-M. However, if the "Not Applicable" check box is checked, then delete the entry in Field 15-M.

    If... Then...
    The "Yes" box is checked Enter "1" in Field 15-M.
    The "No" box is checked Enter "2" in Field 15-M.
    The "Not Applicable" box is checked
    1. Leave Field 15-M blank.

    2. Or, if an entry is present, delete the entry in Field 15-M.

    Both the Yes and No boxes are checked Enter "2" in Field 15-M if either Schedule A (lines 31 to 38) or Schedule B (lines 39 to 47) is complete. Otherwise enter "1" in Field 15-M.
    Neither boxes are checked (Yes or No)
    1. Leave Field 15-M blank.

    2. Or, if an entry is present, delete the entry in Field 15-M.

Section 16 - Form 3520

  1. If either Field 15-L or 15-M has an entry of "2" (Line 29 or 30 checked "No" ), Section 16 must be completed.

  2. Section 16 alpha field designators, maximum field lengths, titles and locations on the return are as follows:

    Alpha Designator Field Length Title Location on Return
    16-A 12 Total Current Year Distributions Line 31
    16-B 3 Non-grantor Trust Years Line 32
    16-C 12 Three Year Total Distributions Line 33
    16-D 12 Multiply Line 33 x 1.25 Line 34
    16-E 12 Average Distribution Line 35
    16-F 12 Ordinary Income Amount Line 36
    16-G 12 Accumulation Distribution Amount Line 37
    16-H 3 Applicable Foreign Trust Years Line 38

Field 16-A - Total Current Year Distributions Received (Line 31)

  1. Field 16-A is a 12-position field that must be present if Field 15-L or 15-M has an entry of "2" (Line 29 or 30 checked "No" ).

Field 16-B - Number of Years as Non-grantor Trust (Line 32)

  1. Field 16-B is a three-position field that may be present.

  2. See IRM 3.22.19.17.4 (4) for correction procedures.

Field 16-C - Total Distributions in Past Three Years (Line 33)

  1. Field 16-C is a 12-position field that may be present.

Field 16-D - Computed Distribution (Line 34)
Compute Line 33 X 1.25

  1. Field 16-D is a 12-position field that may be present.

Field 16-E - Average Distribution (Line 35)

  1. Field 16-E is a 12-position field that may be present.

Field 16-F - Current Year Ordinary Income (Line 36)

  1. Field 16-F is a 12-position field that may be present.

Field 16-G - Amount Treated as Accumulation Distribution (Line 37)

  1. Field 16-G is a 12-position field that may be present.

Field 16-H - Applicable Number of Years of Trust (Line 38)

  1. Field 16-H is a three-position field that may be present.

  2. See IRM 3.22.19.17.4 (4) for correction procedures.

Section 17 - Form 3520

  1. Section 17 may be completed if Field 15-M has an entry of "1" (Line 30 is checked "Yes" ) and the foreign non-grantor trust beneficiary statement is attached.

  2. Section 17 alpha field designators, maximum field lengths, titles and locations on the return are as follows:

    Alpha Designator Field Length Title Location on Return
    17-A 12 Amount from Line 27 Line 39
    17–B 12 Ordinary Income Amount in Current Year Line 40a
    17-C 12 Qualified Dividends Line 40b
    17-D 12 Accumulation Distribution Amount Line 41a
    17-E 12 Tax Exempt Amount from Line 41a Line 41b
    17-F 12 Net Short Term Capital Gain in Current Year Line 42a
    17-G 12 Net Long Term Capital Gain in Current Year Line 42b
    17-H 12 28 percent Rate Gain Line 42c
    17-I 12 Unrecaptured Section 1250 Gain Line 42d
    17-J 12 Trust Corpus Distribution Amount Line 43
    17-K 12 Other Undistributed Amounts From Foreign Trust Line 44
    17-L 12 Trust's Aggregate Undistributed Income AMOUNT Line 45
    17-M 12 Trust's Weighted Undistributed Income Amount Line 46
    17-N 3 Applicable Number of Years of Trust Line 47
  3. Fields 17-A thru 17-M: These fields take up to 12 characters, of which an entry may or may not be present.

    • Valid characters are numeric "0-9" .

    • The amount must be positive.

    • The amount must be in dollars only.

  4. Error Condition:

    • The entry is not numeric.

    • The amount appears in dollars and cents.

    • The amount appears as a negative amount.

    • Field 15-L or 15-M contain the incorrect value.

  5. Correction Procedures:

    If... Then...
    the filer’s entry is not numeric,
    1. Delete the entry, and

    2. enter the correct numeric amount from the return.

    the amount appears in dollars and cents,
    1. Delete the entry,

    2. round the filer’s entry to the nearest whole dollar,

    3. enter the rounded figure above or to the right of the deleted entry.

    the amount appears as a negative amount.
    1. Review the return for the correct amount.

    2. if the entry is truly a negative amount on the return,

    3. Delete the entry and enter "0"

      Caution:

      Correct the entry into a positive amount if it appears as a positive amount on the return.

    Field 15-L or 15-M contain the incorrect value Correct the value for Field(s) 15-L or 15-M. See IRM 3.22.19.18.12 and/or IRM 3.22.19.18.13.

Field 17-A - Total Current Year Distributions (Line 39)

  1. Field 17-A is a 12-position field that may be present if Field 15-L has an entry of "2" or Field 15-M has an entry of "1" .

  2. See IRM 3.22.19.20 (5) for correction procedures.

Field 17-B - Ordinary Income Amount in Current Year (Line 40a)

  1. Field 17-B is a 12-position field that may be present if Field 15-L has an entry of "2" or Field 15-M has an entry of "1" .

  2. See IRM 3.22.19.20 (5) for correction procedures.

Field 17-C - Qualified Dividends (Line 40b)

  1. Field 17-C is a 12-position field that may be present if Field 15-L has an entry of "2" or Field 15-M has an entry of "1" .

  2. See IRM 3.22.19.20 (5) for correction procedures.

Field 17-D - Accumulation Distribution Amount (Line 41a)

  1. Field 17-D is a 12-position field that may be present if Field 15-L has an entry of "2" or Field 15-M has an entry of "1" .

  2. See IRM 3.22.19.20 (5) for correction procedures.

Field 17-E - Tax Exempt Amount from line 41a (Line 41b)

  1. Field 17-E is a 12-position field that may be present if Field 15-L has an entry of "2" or Field 15-M has an entry of "1" .

  2. See IRM 3.22.19.20 (5) for correction procedures.

Field 17-F - Net Short Term Capital Gain in Current Year (Line 42a)

  1. Field 17-F is a 12-position field that may be present if Field 15-L has an entry of "2" or Field 15-M has an entry of "1" .

  2. See IRM 3.22.19.20 (5) for correction procedures.

Field 17-G - Net Long Term Capital Gain in Current Year (Line 42b)

  1. Field 17-G is a 12-position field that may be present if Field 15-L has an entry of "2" or Field 15-M has an entry of "1" .

  2. See IRM 3.22.19.20 (5) for correction procedures.

Field 17-H - 28 percent Rate Gain (Line 42c)

  1. Field 17-H is a 12-position field that may be present if Field 15-L has an entry of "2" or Field 15-M has an entry of "1" .

  2. See IRM 3.22.19.20 (5) for correction procedures.

Field 17-I - Unrecaptured Section 1250 Gain (Line 42d)

  1. Field 17-I is a 12-position field that may be present if Field 15-L has an entry of "2" or Field 15-M has an entry of "1" .

  2. See IRM 3.22.19.20 (5) for correction procedures.

Field 17-J - Trust Corpus Distribution Amount (Line 43)

  1. Field 17-J is a 12-position field that may be present if Field 15-L has an entry of "2" or Field 15-M has an entry of "1" .

  2. See IRM 3.22.19.20 (5) for correction procedures.

Field 17-K - Other Undistributed Amounts from Foreign Trust (Line 44)

  1. Field 17-K is a 12-position field that may be present if Field 15-L has an entry of "2" or Field 15-M has an entry of "1" .

  2. See IRM 3.22.19.20 (5) for correction procedures.

Field 17-L - Trust's Aggregate Undistributed Net Income (Line 45)

  1. Field 17-L is a 12-position field that may be present if Field 15-L has an entry of "2" or Field 15-M has an entry of "1" .

  2. See IRM 3.22.19.20 (5) for correction procedures.

Field 17-M - Trust's Weighted Undistributed Net Income (Line 46)

  1. Field 17-M is a 12-position field that may be present if Field 15-L has an entry of "2" or Field 15-M has an entry of "1" .

  2. See IRM 3.22.19.20 (5) for correction procedures.

Field 17-N - Applicable Number of Years of Foreign Trust (Line 47)

  1. Field 17-N is a three-position field that may be present.

  2. See IRM 3.22.19.17.4 (4) for correction procedures.

Section 18- Form 3520

  1. Section 18 alpha field designators, maximum field lengths, titles and locations on the return are as follows:

    Alpha Designator Field Length Title Location on Return
    18-A 12 Accumulation Distribution Amount Line 48
    18-B 12 Partial Tax Line 49
    18-C 3 Applicable Number of Years of Trust Line 50
    18-D 4 Combined Interest Rate Line 51
    18-E 12 Interest Charge Line 52
    18-F 12 Tax Attributable to Distribution Line 53

Field 18-A - Accumulation Distribution (Line 48)

  1. Field 18-A is a 12-position field that must be present if there is an entry (greater than zero) in Field 16-G and/or 17-D (Line 37 and/or 41a).

Field 18-B - Partial Tax on Accumulation Distribution (Line 49)

  1. Field 18-B is a 12-position field that must be present if there is an entry (greater than zero) in Field 16-G and/or 17-D (Line 37 and/or 41a).

Field 18-C - Applicable Number of Years of Foreign Trust (Line 50)

  1. Field 18-C is a three-position field that may be present if there is an entry (greater than zero) in Field 16-G and/or 17-D (Line 37 and/or 41a).

  2. See IRM 3.22.19.17.4 (4) for correction procedures.

Field 18-D - Combined Interest Rate on Accumulation Distribution (Line 51)

  1. Field 18-D is a four-position field that may be present if there is an entry (greater than zero) in Field 16-G and/or 17-D (Line 37 and/or 41a).