3.11.3 Individual Income Tax Returns

Manual Transmittal

November 28, 2023

Purpose

(1) This transmits revised IRM 3.11.3, Returns and Documents Analysis - Individual Income Tax Returns.

Material Changes

(1) IRM 3.11.3 Updated the following items as required annually:

  • Dates

  • Form line number changes

  • All referenced dollar amounts were updated

  • Editorial changes as needed

(2) IRM 3.11.3.2.1 Deleted program codes associated with Form 1040-SR; Form 1040-SR will be batched along with Form 1040.

(3) IRM 3.11.3.3.3(11) Revised the list of transcribed forms to include Form 8936, Schedule A and Form 5695. Updated sequence number for Form 4136 to Seq #79.

(4) IRM 3.11.3.3.7.4(2) Added line number for Form 1040-SR. IPU 23U0013 issued 01-03-2023.

(5) IRM 3.11.3.4.2.1(1) Updated note to indicate that a double arrow could be used to edit a dollar amount to one additional T-line.

(6) IRM 3.11.3.5.1 Added Schedule 8812 to (1). IPU 23U0211 issued 02-02-2023.

(7) IRM 3.11.3.5.1(1) Deleted reference to Schedule 8812 from the Exception. IPU 23U0013 issued 01-03-2023.

(8) IRM 3.11.3.5.2.1 Updated (1) exception to add criteria for natural disaster notation on returns to the list and listing additional letters and referring tax examiners to the Attachment Guide for further instructions.; Added note to (4)f to indicated the date may be stamped or edited following local procedures for mailing and updated (4)g caution to add stapling information.

(9) IRM 3.11.3.5.2.2(6) Updated caution with stapling information.

(10) IRM 3.11.3.5.3.2(2)c Updated by adding note regarding complete correspondence conditions.

(11) IRM 3.11.3.5.3.2(6) Chart updated as follows:

  • Deleted row for Schedule 1, line 22, no longer a transcribed line or required form.

  • Revised Schedule 2, Line 8 with info for box to the left of the line.

  • Revise row for Schedule 3, Line 5, now line 5a with new instructions.

  • Added row for Schedule 3, new Line 5b.

  • Added row for Schedule 3, Line 13b for TY22.

  • Added row for Schedule 3, Line 13b for TY21.

  • Added row for Schedule 3, Line 12a for TY20.

  • Added row for Schedule 3, Line 13h for TY22.

  • Added row for Schedule 3, Line 13h for TY21.

  • Deleted row for Form 8917, no longer a required form.

(12) IRM 3.11.3.6.1.4(4) Deleted reference to exhibit and adding instructions to complete the Form 911 following form instructions.

(13) IRM 3.11.3.6.2.3(1) Added the word T-line to the paragraph. IPU 23U0161 issued 01-24-2023.

(14) IRM 3.11.3.6.2.9(1) Added information to identify criteria for editing Action Code 430 and removed reference to Form 8958 subsection.

(15) IRM 3.11.3.6.2.10(1) Chart - Added new item to list in first column with instructions for sequencing of Form 8938.

(16) IRM 3.11.3.6.2.13 Expanded guidance by revising bullets for Form 1042-S, 2555, 8288-A, 8689, and 8805. IPU 23U0724 issued 06-13-2023.

(17) IRM 3.11.3.6.2.13(1) Added to list bullet for Form 1040-SS and updated the name of Form 1040-PR

(18) IRM 3.11.3.6.2.14 Deleted the first sentence in (1) as not applicable and deleted the first row of the (3) chart and the note under the chart, as no longer applicable.

(19) IRM 3.11.3.6.2.17(4) Deleted the words "or photocopied" , no longer applicable.

(20) IRM 3.11.3.6.2.18(5) Deleted information from prior year Schedule SE, line numbers have changed and information no longer accurate.

(21) IRM 3.11.3.6.2.19.1(1) Corrected the stop number in the 2nd bullet. IPU 23U0161 issued 01-24-2023.

(22) IRM 3.11.3.8.1(1) Added new exception and revised 2nd exception to further explain Full Paid return editing. IPU 23U0013 issued 01-03-2023.

(23) IRM 3.11.3.8.2 Deleted three exceptions in (1) for prior years and note in (2), no longer needed.

(24) IRM 3.11.3.8.2(1) Corrected edited date in Exception. IPU 23U0532 issued 04-24-2023.

(25) IRM 3.11.3.8.2(1)a Updated to add "the postmark date stamped or handwritten on the return" and to delete the 3 exceptions in (1)e and the note in (2), no longer needed for processing in 2024.

(26) IRM 3.11.3.8.2(1)c Revised to remove "2022 or 2023" and updated to read "this year" . IPU 23U0013 issued 01-03-2023.

(27) IRM 3.11.3.8.3(1) Added note with information regarding Maine, Massachusetts and DC specific holidays for 2024

(28) IRM 3.11.3.8.3(4) Chart - Deleted exception for AUSPC in the first two "Then" boxes. Reversed change made in IPU 23U0532 issued 04-24-2023. IPU 23U0724 issued 06-13-2023.

(29) IRM 3.11.3.8.3(4) Chart - Added exception for AUSPC to the first two "Then" boxes. IPU 23U0532 issued 04-24-2023.

(30) IRM 3.11.3.8.5(3) Chart - Added instructions to pull and rebatch timely filed returns to 2nd Row, Then column. IPU 23U0558 issued 04-27-2023.

(31) IRM 3.11.3.8.6 Corrected extended due date. IPU 23U0532 issued 04-24-2023.

(32) IRM 3.11.3.8.6(5) Deleted note as no longer necessary.

(33) IRM 3.11.3.10(1) Added item (g) to alpha-list. IPU 23U0211 issued 02-02-2023.

(34) IRM 3.11.3.10.1(7) Reworded (7) for plain language.

(35) IRM 3.11.3.10.3(1) Added a note referencing beneficiaries.

(36) IRM 3.11.3.10.5 Moved (2) to be (1) and renumbered and moved associated figures 3.11.3-45 and 3.11.3-46.

(37) IRM 3.11.3.12.2(3) Added Schedule 2441 and Form 8814 to reference to Schedule EIC. IPU 23U0013 issued 01-03-2023.

(38) IRM 3.11.3.12.2.4(1) Added Schedule 2441 and Form 8814 to reference to Schedule EIC. IPU 23U0013 issued 01-03-2023.

(39) IRM 3.11.3.12.2.5(2) Revised tables with specific instructions for editing CCC Q and added Schedule 2441 and Form 8814 to reference to Schedule EIC. IPU 23U0013 issued 01-03-2023.

(40) IRM 3.11.3.14.2.1(2) Revised the table row (column 1), for Non-Employee Compensation to specify additional line numbers. IPU 23U0456 issued 03-24-2023.

(41) IRM 3.11.3.14.2.1(2) Revised the table rows for Disability Pension with instruction to move to line 1z when found elsewhere. IPU 23U0315 issued 02-27-2023.

(42) IRM 3.11.3.14.2.1(2) Added note to actions for Medicaid Waiver Payment row. IPU 23U0211 issued 02-02-2023.

(43) IRM 3.11.3.14.2.1(2) Added instruction to edit SPC J when prisoner income is indicated. IPU 23U0013 issued 01-03-2023.

(44) IRM 3.11.3.14.2.1(2) Chart - Corrected information related to Non-Taxable Income.

(45) IRM 3.11.3.14.2.18(2) Chart - Deleted Form 8917 information from chart, not applicable for 2024.

(46) IRM 3.11.3.14.2.25 Deleted instructions and reserved the subsection, not applicable for 2023 processing. IPU 23U0013 issued 01-03-2023.

(47) IRM 3.11.3.14.2.26(2) Chart - Updated row for Form 8936 and Form 5695, additional information required based on Schedule 3 updates.

(48) IRM 3.11.3.14.2.30 Added new (1) with a list of valid sources of withholding.

(49) IRM 3.11.3.14.2.32(5) Chart - Updated information for HSH income.

(50) IRM 3.11.3.14.2.33 Updated the subsection title to remove Refundable Child Tax Credit.

(51) IRM 3.11.3.14.2.33 Deleted (1) note and moved (2) note up to (1). IPU 23U0558 issued 04-27-2023.

(52) IRM 3.11.3.14.2.33 Revised (1) and added exception for TY21, moved note to (2) and deleted exception. IPU 23U0013 issued 01-03-2023.

(53) IRM 3.11.3.14.2.33(1) Updated note to delete 2nd sentence, not needed in current year instructions.

(54) IRM 3.11.3.14.2.36 Deleted Schedule H and Form 7202 information from (2) chart and moved (3) DPE information to prior year subsection of IRM.

(55) IRM 3.11.3.14.2.36(1) Reworded exception with instructions when not to dummy schedule. IPU 23U0532 issued 04-24-2023.

(56) IRM 3.11.3.14.2.36(3) Added new (3) with instructions for Deemed Payment Elections. IPU 23U0456 issued 03-24-2023.

(57) IRM 3.11.3.14.3.2(1) Added note referring to alpha-numeric entries. IPU 23U0211 issued 02-02-2023.

(58) IRM 3.11.3.14.3.5(5) Added prior year line information for Form 2210. IPU 23U0211 issued 02-02-2023.

(59) IRM 3.11.3.14.8.1(2)a Expanded instruction by adding examples for editing the Preparer Code.

(60) IRM 3.11.3.15.8 Added new (10) with instructions for SPC J when prisoner income is present. IPU 23U0013 issued 01-03-2023.

(61) IRM 3.11.3.15.9 Added new (2) with instructions for editing misplaced entry on the line.

(62) IRM 3.11.3.15.12 Added new (2) with instructions for editing FPC P. IPU 23U0161 issued 01-24-2023.

(63) IRM 3.11.3.15.24 Added new (3) with instructions for line 24j. IPU 23U0724 issued 06-13-2023.

(64) IRM 3.11.3.16.1(1) Added reminder for editing FPC 5.

(65) IRM 3.11.3.17 (4) Revised T-line chart for Schedule 3.

(66) IRM 3.11.3.17.5 Deleted (2), instruction no longer applicable. IPU 23U0161 issued 01-24-2023.

(67) IRM 3.11.3.17.5 Revised title and instructions per revised Form 5695.

(68) IRM 3.11.3.17.6 Added new subsection for Schedule 3, line 5b, Energy Efficient Home Improvement Credit.

(69) IRM 3.11.3.17.7.4 Deleted current year instruction and moved to prior year subsection.

(70) IRM 3.11.3.17.7.5 Updated the title from Qualified Plug-In Motor Vehicle Credit to Clean Vehicle Credit.

(71) IRM 3.11.3.17.7.7 New subsection added for Schedule 3, line 6m.

(72) IRM 3.11.3.17.10(4) Revised #2 in the chart for verifying excess SST with information from Form W-2. IPU 23U0390 issued 03-14-2023.

(73) IRM 3.11.3.17.12.1 Revised (1) and added new (2) incorporating instructions for Deemed Payment Elections. IPU 23U0456 issued 03-24-2023.

(74) IRM 3.11.3.17.13.1 Moved all DPE information/instructions from subsection and relocated it to the prior year subsection. Updated the subsection Title to remove DPE.

(75) IRM 3.11.3.17.13.2 Deleted the subsection and moved all instructions for prior year Schedule 3, line 13b to the prior year subsection. Subsequent subsection renumbered.

(76) IRM 3.11.3.17.13.2 Revised renumbered subsection title for TY23 and deleted (1) note as no longer necessary.

(77) IRM 3.11.3.17.13.3 Added new subsection for new line Elective Payment Election.

(78) IRM 3.11.3.18.1.7(1) Chart Revised 1st Column, 1st and 4th rows to read "more than" , removed "greater than or equal to" . IPU 23U0013 issued 01-03-2023.

(79) IRM 3.11.3.18.1.7(1) Chart - Revised row C with updated instructions for Audit Code C.

(80) IRM 3.11.3.18.2 Deleted (1) as redundant.

(81) IRM 3.11.3.20(2) Updated T-line chart for Schedule C.

(82) IRM 3.11.3.20.1 Deleted (8) and moved instruction to a new subsection.

(83) IRM 3.11.3.20.3 Added new subsection for Schedule A, Line A instructions, moved from above. Subsequent subsections renumbered.

(84) IRM 3.11.3.20.4 (1) Moved the information in the note to a new row in the table and deleted the note for consistency with other IRM subsections.

(85) IRM 3.11.3.20.9(2) Revised to reflect that Line 27b would be valid for TY23 and later.

(86) IRM 3.11.3.26(2) Revised the T-line chart for Schedule SE.

(87) IRM 3.11.3.26.3 Deleted (1) for TY20, and (4) for TY12, no longer applicable. Revised chart in (3) for TY22.

(88) IRM 3.11.3.29 Added tax year to Line 1, column (d). IPU 23U0211 issued 02-02-2023.

(89) IRM 3.11.3.29 Revised T-Line chart to match TY22 form changes. IPU 23U0013 issued 01-03-2023.

(90) IRM 3.11.3.29.1.1

  • Deleted (2) note as no longer applicable

  • Added Note to (3)b for editing of SPC D

  • Added Exception to (3)b for editing of SPC D

  • Added new Figure 3.11.3-100 and all subsequent figures were renumbered

  • Added Note to (4) for editing of SPC D

  • Added Exception to (4) for editing of SPC D

(91) IRM 3.11.3.29.1.2(2) Added Note with instructions for editing SPC L and added a new Figure 3.11.3-103, all subsequent figures were renumbered.

(92) IRM 3.11.3.29.1.7 Added new subsection with instructions for Form 2441, line 26. IPU 23U0013 issued 01-03-2023.

(93) IRM 3.11.3.30(2) Revised T-line chart for Form 3800.

(94) IRM 3.11.3.30.1(5) Added new (5) with instructions for editing the new Part V Data Indicator.

(95) IRM 3.11.3.30.1(6)a) Deleted instruction to edit an indicator when Form 3468 is attached in support of Form 3800.

(96) IRM 3.11.3.30.2 Added instruction for a TY22.

(97) IRM 3.11.3.31 Moved entire subsection from 3.11.3.31 to subsection 72. All subsequent subsections renumbered.

(98) IRM 3.11.3.31.2(1) Revised Social Security Chart for prior year Form 4137.

(99) IRM 3.11.3.32.1.1(1) Updated valid FEMA numbers for 2024.

(100) IRM 3.11.3.33.1 Revised Figure 3.11.3-103 to correct line entries. IPU 23U0161 issued 01-24-2023.

(101) IRM 3.11.3.37.1 Added new (3) with instructions for editing FPC 5; subsequent paragraphs renumbered. IPU 23U0278 issued 02-17-2023.

(102) IRM 3.11.3.39.2 Added new (1) for TY22 information, all subsequent paragraphs renumbered.

(103) IRM 3.11.3.43.2 Added new (1) with TY22 information, all subsequent paragraphs renumbered.

(104) IRM 3.11.3.43.1(2) Revised (2) with more detailed instructions for deleting Schedule EIC. IPU 23U0390 issued 03-14-2023.

(105) IRM 3.11.3.43.10 Added new (1) with TY22 information, subsequent paragraphs were renumbered and the (6) chart was updated by removing 2013 information.

(106) IRM 3.11.3.43.10(1) Revised (1) with more detailed instructions for deleting Schedule EIC. IPU 23U0390 issued 03-14-2023.

(107) IRM 3.11.3.43.10(5) Chart - Removed 2021 line from chart. IPU 23U0724 issued 06-13-2023.

(108) IRM 3.11.3.43.10 Added new (1) for TY 2021, renumbered subsequent paragraphs and identified (5) instructions as applicable to TY 2020 and prior. IPU 23U0315 issued 02-27-2023.

(109) IRM 3.11.3.44.16 Added new (1) for TY22, subsequent paragraphs were renumbered, and deleted (3) with instructions for editing line 8d as 8DEF, no longer being transcribed, no editing required.

(110) IRM 3.11.3.45.1(4) Deleted 3rd bullet as redundant. IPU 23U0161 issued 01-24-2023.

(111) IRM 3.11.6.46.2 Added new (1) with TY22 instructions, all subsequent paragraphs renumbered.

(112) IRM 3.11.3.45.2 Added new (1) with additional TY22 processing instructions. Subsequent paragraphs renumbered.

(113) IRM 3.11.3.45.2(2) Deleted bullet list and rewrote (1) to read "do not X Schedule 8812" . IPU 23U0456 issued 03-24-2023.

(114) IRM 3.11.3.45.2(2) Added note indicating line numbers referred to TY21 schedule. IPU 23U0161 issued 01-24-2023.

(115) IRM 3.11.3.51 (7) Added reminder for deleting non-transcribed Form 8995-A Schedules.

(116) IRM 3.11.3.51(7) Remove the current year only restriction for editing FPC H. IPU 23U0532 issued 04-24-2023.

(117) IRM 3.11.3.54(2) Added note with instructions not to delete the Form 5405 with T-line entries. IPU 23U0161 issued 01-24-2023.

(118) IRM 3.11.3.60 Deleted information pertaining to prior year only and moved to 3.11.3.60.1.

(119) IRM 3.11.3.60.1 Added new (1) for TY22-TY14 instructions; moved from current year 3.11.3.60.

(120) IRM 3.11.3.60.2(2) Removed examples from paragraph and added a chart for examples of editing 5 digit decimal number. IPU 23U0013 issued 01-03-2023.

(121) IRM 3.11.3.63 Updated the title for Form 8936 from Qualified Plug-in Electric Drive Motor to Clean Vehicle Credits; updated the T-line chart and added new (6) with instructions for required Form 8936, Schedule A.

(122) IRM 3.11.3.63.1 Added a new (1) for TY22-TY11 instructions for Form 8936.

(123) IRM 3.11.3.64 Added new subsection for new Form 8936 Schedule A. All subsequent subsections will be renumbered accordingly.

(124) IRM 3.11.3.67.1 Added new subsection for Form 5695 Line 10.

(125) IRM 3.11.3.69 Added new subsection for Form 5695. All subsequent subsections will be renumbered accordingly.

(126) IRM 3.11.3.73.2 Revised (3)b chart with instructions to process statute returns without routing them to the Statute Unit; deleted the Note in (5), it contradicted the new instructions in (3). IPU 23U0102 issued 01-17-2023.

(127) IRM 3.11.3.73.3.1.3 Deleted instructions and added new (1) for TY21 and new (2) for TY20

(128) IRM 3.11.3.73.3.1.7 Deleted (1) with TY18 information as no longer applicable. IPU 23U0211 issued 02-02-2023.

(129) IRM 3.11.3.73.3.1.10(1) Corrected the tax years for PYEI validity.

(130) IRM 3.11.3.73.3.1.11 Added new (1) for TY21, updated (2) tax year to be TY20 and prior, and renumbered subsequent paragraphs. IPU 23U0013 issued 01-03-2023.

(131) IRM 3.11.3.73.3.1.14 Updated with TY22 instructions for editing deemed payment elections, moved from current year.

(132) IRM 3.11.3.73.3.4.1 Deleted all instructions and reserved the subsection. Instructions no longer applicable. IPU 23U0161 issued 01-24-2023.

(133) IRM 3.11.3.73.3.4.3(4) Revised #2 in the chart for verifying excess SST with information from Form W-2. IPU 23U0390 issued 03-14-2023.

(134) IRM 3.11.3.73.3.4.4 Added new subsection for Schedule 3 line 13a instructions for TY22 deemed payment elections, moved from current year.

(135) IRM 3.11.3.73.3.4.5 Added new subsection for TY22 Schedule 3 line 13b editing instructions.

(136) IRM 3.11.3.73.3.4.6 Revised (1) by adding "line 13b" . IPU 23U0211 issued 02-02-2023.

(137) IRM 3.11.3.73.3.4.6 Updated the title to add line 13b. IPU 23U0161 issued 01-24-2023.

(138) IRM 3.11.3.72 Added new subsection for Form 4136 which moved from subsection 3.11.3.30. All subsequent subsections will be renumbered accordingly.

(139) IRM 3.11.3.73.3.1.2 Deleted subsection as unnecessary, information can be found in the current year section. All subsequent subsections were renumbered.

(140) IRM 3.11.3.73.3.1.6 Deleted subsection as unnecessary, information can be found in the current year section. All subsequent subsections were renumbered.

(141) IRM 3.11.3.73.3.1.8 Deleted subsection as unnecessary, information can be found in the current year section. All subsequent subsections were renumbered.

(142) IRM 3.11.3.73.3.1.9(1) Chart - Updated with TY22 information and TY13 information was deleted.

(143) IRM 3.11.3.73.3.3(2) Revised instructions for TY20 correspondence, deleted instruction for TY21.

(144) 3.11.3.73.3.4.1 Revised subsection with TY22 instructions moved from current year subsection for Schedule 3, line 5a.

(145) IRM 3.11.3.73.3.4.2 Revised (4), instructions for Schedule 3, line 6e, only valid on TY22 and prior.

(146) IRM 3.11.3.73.3.4.5 Added new (2) and (3) with special editing instructions for TY21-TY22 Schedule 3, line 13.

(147) IRM 3.11.3.73.3.4.7 Revised the title to remove line 13b, revised (1) for TY21-TY22 for line 13h only.

(148) Exhibit 3.11.3-1 revised as follows:

  • Updated instructions for CP 54

  • Corrected Ogden’s address for Form 2848 routing

  • Updated instructions for Form 3911 when not detaching

  • Deleted Form 5695, it is now a transcribed form

  • Updated the title for Form 8288 and 8288-A

  • Added form 8917

  • Updated actions for 8995-A Schedules A, B, and D

(149) Exhibit 3.11.3-1 Revised instructions for Form 1042-S, 8288-A, 8689, and 8805 adding instructions for notations of the forms listed. IPU 23U0724 issued 06-13-2023.

(150) Exhibit 3.11.3-1 Added Letter 5216C, Letter 5747C, Letter 6167C, Form 7204, and Form 7205 to the attachment guide with instructions. IPU 23U0278 issued 02-17-2023.

(151) Exhibit 3.11.3-1 Updated the information for Form 9325. IPU 23U0161 issued 01-24-2023.

(152) Exhibit 3.11.3-3 Revised Audit Code exhibit for Audit Code C.

(153) Exhibit 3.11.3-5 Added tax period limitation for FPC A for attached Form 8332.

(154) Exhibit 3.11.3-5 Added FPC 2 (Form 7204), 3 (Form 7205), and 5 (Form 6251) to the chart. IPU 23U0278 issued 02-17-2023.

(155) Exhibit 3.11.3-5 Added FPC D to the chart. IPU 23U0013 issued 01-03-2023.

(156) Exhibit 3.11.3-6 Revised definition for RPC 5.

(157) Exhibit 3.11.3-6 Added RPC 5 to the chart with an updated definition, revised for PY23. IPU 23U0390 issued 03-14-2023.

(158) Exhibit 3.11.3-7 Revised chart by removing SPC C as no longer relevant. IPU 23U0161 issued 01-24-2023.

(159) Exhibit 3.11.3-7 Added new Special Processing Codes D and L for Form 2441.

(160) Exhibit 3.11.3-8 Deleted Unallowable 70 from chart per clearance review feedback.

(161) Exhibit 3.11.3-15 Added DPE and EPE to the Acronym chart.

Effect on Other Documents

IRM 3.11.3, Individual Income Tax Returns, dated November 15, 2022, (effective January 1, 2023), is superseded. This IRM also incorporates the following IRM Procedural Updates (IPUs) issued between January 2023 and September 2023: 23U0013, 23U0102, 23U0161, 23U0211, 23U0278, 23U0315, 23U0390, 23U0456, 23U0532, 23U0558, 23U0646, and 23U0724.

Audience

Wage and Investment, Code and Edit Tax Examiners

Effective Date

(01-01-2024)

James L. Fish
Director, Submission Processing
Wage and Investment Division

Program Scope and Objectives

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

  2. Audience: Tax examiners in Wage and Investment Division (W&I), Submission Processing Service Centers, Code & Edit Units are the primary users of this IRM.

  3. Policy Owner: The Director of Submission Processing oversees the policies in this IRM.

  4. Program Owner: The Code & Edit/ERS IMF Section of the Paper Processing Branch of Submission Processing oversees the procedures and all updates related to this IRM.

  5. Primary Stakeholders: Submission Processing (SP).

Background

  1. This section of the Internal Revenue Manual (IRM) provides instructions for coding and editing individual income tax returns for computer processing. Special codes are entered into the computer to perform specific functions. Editing is necessary because many returns are incomplete, have invalid or misplaced entries or are computed incorrectly.

  2. Instructions in this manual are for Form 1040 / 1040-SR, Form 1040A, Form 1040EZ and attachments to the return.

Authority

  1. Authority for these procedures is found in the following sections of the Internal Revenue Code and their corresponding Treasury regulations:

    • IRC 6201(a)

    • IRC 6213(b)

    • IRC 6402(a)

    • IRC 6511

  2. Policy Statements for Submission Processing are found in IRM 1.2.1, Servicewide Policy Statements.

Responsibilities

  1. The Director, SP Office monitors operational performance for the Submission Processing campus.

  2. The Operations Manager monitors operational performance for their operation.

  3. The team manager/lead handles performance monitoring and ensuring employees have the tools to perform their duties.

  4. The team employees follow the instructions found in this IRM and maintaining updated IRM procedures.

Program Objectives and Review

  1. Program Goals: To timely review and edit all returns received in Code & Edit (C&E).

  2. Program Reports: The Monitoring Section under Submission Processing Program Management/Process Assurance monitors the Code & Edit reports.

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

    • Embedded Quality Submission Processing (EQSP)

    • Balanced Measures

    • Managerial Reviews

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

Terms/Definitions/Acronyms

  1. See Exhibit 3.11.3-15 for a glossary of frequently used terms and acronym listing.

Related Resources

  1. Job Aid 2431-009, Coding & Editing Individual Income Tax Returns - Current Year Job Aid and Job Aid 2431-010, Coding & Editing Individual Income Tax Returns - Prior Year Job Aid, were developed as reference guides for this manual. This manual refers the tax examiner to clarifying information or exhibits in the Job Aid, where needed. When a conflict between any referenced material and the IRM instructions occur, the IRM instructions take precedence.

General Guidelines

  1. Instructions in this manual are for a typical return. Apply the instructions as far as possible when a situation is not explained.

  2. Occasionally, multiple Form 1040, Form 1040-A, Form 1040-EZ and/or Form 1040-X are attached. For example:

    • Two or more returns from the same taxpayer are mailed in the same envelope.

    • Two or more family members' returns are mailed by the tax preparer in the same envelope.

    • Two or more unrelated returns are mailed by the tax preparer in the same envelope.

      Note:

      Detach the returns leaving an action trail on each document, then sort, work or route the returns as required.

      Exception:

      Do not separate returns that are identified as Dual Status, Streamline, Relief for Certain Former Citizens or Forms 1045.

  3. Take no action when there is not a specific instruction for a situation.

  4. Refer conflicts between general and specific instructions, unusual situations, and complex cases to your work leader.

  5. Any line in this manual which is marked with a "#" is for official use only and must not be disclosed.

  6. IRM deviations must be submitted in writing following the instructions in IRM 1.11.2.2, Internal Management Documents System - Internal Revenue Manual (IRM) Process - IRM Standards, and elevated through proper channels for executive approval.

  7. The general guidelines described in more detail in this subsection of the manual are:

    • Programs worked in Code & Edit

    • Identifying "numbered" and "unnumbered" returns

    • Routing completed work

Programs Worked

  1. Code & Edit works the Form 1040 programs listed below:

    Program Code Description
    4311X Other-than-full-paid Forms 1040/Forms 1040-SR
    4381X Other-than-full-paid Forms 1040(SP)/Form 1040-SR(SP)
    43210 Full-paid Forms 1040/Forms 1040-SR
    43820 Full-paid Forms 1040(SP)/Forms 1040-SR(SP)

    Note:

    Program Code 43115 has been identified for use for conversions of prior year Forms 1040A and 1040EZ.

  2. Austin also works ITIN program 4317X (Forms 1040).

Identifying "Numbered" and "Unnumbered" Returns

  1. A "numbered" return has a fourteen-digit Document Locator Number (DLN) imprinted in the top right margin. Do not remove a numbered return from a numbered block.

  2. An "unnumbered" return has no DLN. These documents are numbered after coding and editing. Unnumbered returns may be removed from the block, as instructed.

  3. A numbered return found in an unnumbered batch should be pulled for Work Leader. The Work Leader will research for TC 150:

    1. No TC 150 found, delete DLN, continue processing.

    2. TC 150 posted, no Form 3893 attached, route to 1040-X.

Document Locator Number (DLN)
  1. DLNs are unique numbers assigned to every return processed by the Automatic Data Processing (ADP) Systems. The DLN is used to control, identify, and locate the document.

  2. The sixth, seventh, and eighth digits in the DLN make up the Julian date.

    1. The Julian date is the numeric day of the year. For example, April 15, 2024, is Julian date 106, which is the 106th day of 2024.

  3. The twelfth and thirteenth digits of the DLN are the serial number.

    1. Returns in a block are numbered from "00" to "99" . The maximum number of returns in a numbered block is 100.

    2. Numbered returns in a block must be kept in serial number order.

Routing Completed Work

  1. After coding and editing:

    If returns are Then
    Numbered and blocked, Send them to be transcribed.
    Unnumbered and not blocked, Send them to be numbered and blocked.

General Instructions

  1. The instructions in this manual are for Form 1040, Form 1040-SR, Form 1040(SP), 1040-SR(SP), Form 1040A and Form 1040EZ.

  2. The line numbers are identical on Form 1040, Form 1040-SR, Form 1040(SP), and Form 1040-SR(SP). All instructions for Form 1040 apply equally to each form. Form 1040A and Form 1040EZ will be converted to Form 1040.

  3. The general instructions in this section include:

    • Perfecting transcription lines

    • Identifying the transcribed forms and schedules by sequence code

    • Preparing Form 3471 - Edit Sheet and Form 4227 - Intra-SC Reject or Routing Slip

    • Editing "Action Trails"

    • Handling attachments to returns

    • Editing special processing and unallowable codes

Stamping Tax Examiner (TE) Numbers

  1. Every Code & Edit Tax Examiner (TE) is assigned a unique TE Number.

  2. Stamp your TE number in the upper left-hand corner of the document. All returns must be stamped with your TE number.

    Exception:

    It is only necessary to stamp the first document in a block when working numbered returns.

  3. Stamp your TE number in the upper left-hand corner of all detached documents.

    Exception:

    Do not stamp your TE number on original documents that are being mailed back to the taxpayer.

  4. Line through the TE number when corresponding and the return is going to be sent back to the taxpayer.

  5. Line through the old TE number and stamp the document with your TE number when working returns which were TE stamped before (e.g., mis-blocked, converted or correspondence returns).

Transcription Lines (T-Lines) and Transcription Compute Lines (T-Compute Lines)

  1. Not all entries on forms and schedules are entered into the computer during processing. Only the information from transcription lines (T-Lines) or computed transcription lines (T-Compute Lines) is entered into the computer after coding and editing.

  2. T-Lines and T-Compute Lines are listed in this manual in the overview information for each form or schedule. The edited locations of all T-Lines and T-Compute Lines are illustrated in Job Aid 2431-009 and Job Aid 2431-010.

  3. Compute and edit a T-Compute Line when it is blank and there are entries leading to a significant total. Compute and edit a T-Compute Line that is not blank only when required to do so in the line-by-line instructions.

  4. Use the tax form instructions when computing T-Compute Line totals unless other directions are provided in the line-by-line instructions.

  5. Edit T-Line and T-Compute line amounts when they are illegible, obviously misplaced, or when instructed to do so in the line-by-line instructions.

  6. Correct the entry by referring to other schedules, attachments, or entries on the return only when directed.

  7. Delete an entry on a transcribed line when the meaning of the line has been changed, unless otherwise instructed. (See Figure 3.11.3-1.)

  8. Delete an obviously misplaced amount and edit to the correct T-Line or T-Compute Line. (See Figure 3.11.3-1b.) Dummying of schedules may be required.

  9. Use attachments to prepare "dummy" forms or schedules when they are required to support entries on transcribed lines.

  10. Edit the combined total of the amounts when a T-Line or T-Compute Line has multiple entries. (See Figure 3.11.3-2.)

  11. Do not math verify the transcribed lines on forms or schedules, unless specifically directed to do so in the line-by-line instructions.

  12. Do not math verify when dummying Forms or Schedules.

  13. Edit line numbers for T-lines that have significant entries when line numbers are missing or incomplete.

    Figure 3.11.3-1

    This is an Image: 33440001.gif

    Please click here for the text description of the image.

    Figure 3.11.3-2

    This is an Image: 33440002.gif

    Please click here for the text description of the image.

Transcribed Schedules and Forms

  1. In the upper-right margin of each form or schedule is a preprinted number called a sequence code. The Integrated Submission and Remittance Processing (ISRP) operators transcribe forms and schedules by their sequence code. The transcribed sequence codes range from 01 through 79. See the tables at the end of this subsection for a list of the sequence codes for all transcribed schedules and forms. Any document not on the list is not a transcribed form or schedule. Any form or schedule within this sequence code range that is not transcribed must be deleted.

  2. Delete any form, schedule or document that will not be transcribed when there is a transcribed form or schedule afterward. Leave all non-transcribable forms/schedules intact after the last transcribed page.

    Exception:

    For Form 8938, Statement of Specified Foreign Financial Assets, instructions, refer to IRM 3.11.3.6.2.10.

  3. When a return has a large number of non-transcribable forms, "X" the top page and combine the remaining pages together with a rubber band, staple, or clip.

    Note:

    When instructed to "X" the page, edit the "X" across the entire page.

  4. Delete any form that shares a sequence code with a transcribed form.

    Note:

    Examples include, but are not limited to the following:
    - Form 2106 (Seq. 54) (TY07 and prior)
    - Form 3468 (Seq. 52) (TY09 and prior)
    - Form 3903 (Seq. 62) (TY10 and prior)
    - Form 5884-B (Seq. 65)
    - Form 8621 (Seq. 69)
    - Form 8801 (Seq. 74) (TY19 and prior)
    - Form 8829 (Seq. 66) (TY09 and prior)
    - Form 8862 (Seq. 43A)
    - Form 8949 (Seq. 12A) (TY18 and prior)
    - Schedule D-1 (Seq. 12A) (TY10 and prior)
    - Form 8995-A Schedule A (Seq. 55B)
    - Form 8995-A Schedule B (Seq. 55C)
    - Form 8995-A Schedule D (Seq. 55E)

  5. "X" a transcribed schedule or form if it is blank or has no significant T-line entries as specified in line by line instructions, unless specifically instructed otherwise.

    Exception:

    Do not "X" Form 8938 when there are no significant entries on T-Lines.

  6. If a non-transcribable form or schedule is found between pages 1 and 2 of 2023 - 2018 Form 1040 or 2017 and prior Form 1040 or 1040A, fold or delete them. If a form or schedule is found with significant T-line entries, move it from between pages 1 and 2.

  7. For transcribed forms or schedules with multiple pages, ensure the pages are together and in the proper order (page 1, page 2, etc.).

  8. Delete duplicate forms or schedules with the exact same amounts that are filed for the same taxpayer.

  9. Arrange Schedules 1 through 3 in sequential order behind Form 1040. If a non-transcribable form or schedule is found between Schedules 1 through 3, fold or delete them. If a form or schedule is found with significant T-line entries, move it from between Schedules 1 through 3.

    Exception:

    When a transcribed form or schedule is found on the back side of Form 1040, it is not necessary to photo copy and move behind Schedules 1-3.

  10. Leave Forms W-2 and 1099, Form 1040-V, taxpayer statements, deposit slips, and other small items where found when they do not obstruct T-lines or any part of the caption area. If forms W-2/1099 etc. are a full page form, move or delete them.

    Note:

    It is not necessary to move item if only T-line obstructed is for RPCs unless a staple is obstructing. Move item if the staple placement will interfere with the DLN numbering of the document (i.e., upper right hand corner).

  11. The following forms and schedules are valid transcribed attachments for Form 1040:

    Transcribed Form or Schedule Sequence Code
    Schedule 1 01
    Schedule 2 02
    Schedule 3 03
    Schedule A 07
    Schedule B 08
    Schedule C (C-EZ TY18 and prior) 09, 10, 11
    Schedule D 12
    Form 8949 (TY19 and later) 12A
    Schedule E 13
    Schedule F 14, 15
    Schedule R 16
    Schedule SE 17, 18
    Form 1116 19
    Schedule J 20
    Form 2441 21
    Form 3800 22
    Form 4137 24, 25
    Form 4684 26
    Form 4797 27
    Form 4972 28
    Form 5329 29, 30
    Form 6198 31
    Form 6251 32
    Form 8615 33
    Form 4835 37
    Form 8839 38
    Form 8853 39
    Form 8814 40, 41, 42
    Schedule EIC 43
    Schedule H 44, 45
    Schedule 8812
    Form 8812 (TY2011 and prior)
    47
    Form 8606 48, 49
    Form 8863 50
    Form 4952 51
    Form 8889 52, 53
    Form 8880 54
    Form 8995 (TY19 and later) 55
    Form 8995-A (TY19 and later) 55A
    Form 8995-A, Schedule C (TY20 and later) 55D
    Form 8888 56
    Form 8978 (TY19 and later) 57
    Form 5405 58, 59
    Form 8919 61, 62
    Form 8958 63
    Form 461 (TY21 and later) 64
    Form 8941 65, 66
    Form 6252 (TY19 and later) 67
    Form 8910 68
    Form 8936 69
    Form 8936, Schedule A 69A
    Form 8867 70
    Form 8959 71
    Form 8960 72
    Form 8962 73, 74
    Form 5695 75
    Form 965-A (TY19 and later) 76
    Form 9000 (TY21 and later) 77
    Schedule LEP (TY19 and later) 77A
    Form 8997 (TY21 and later) 78
    Form 4136 79
    Form 8938 938

Internal-Use Forms 3471 and 4227

  1. Code and Edit uses the following two general internal-use forms:

    • Form 3471, Edit Sheet

    • Form 4227, Intra-SC Reject or Routing Slip

  2. The conditions requiring use of these forms are found in the line-by-line instructions.

Form 3471 - Edit Sheet
  1. Form 3471, Edit Sheet, is transcribed as sequence code number “02”.

  2. Edit money amounts on Form 3471 in dollars only for all form types (1040/A/EZ).

  3. Staple Form 3471 to the left side margin of page 1 below the caption area or if using Form 3471-E, staple it to the back of the return facing out.

  4. Edit Form 3471 as follows:

    Form 3471 Action
    Lines 1, 2 and 3 - Unallowable Codes and amounts
    1. Edit all Unallowable Codes in the order found.

    2. When there are more than three unallowables, edit the first two on lines 1 and 2, and Unallowable Code "98" on line 3 with no money amount. Edit the remaining Unallowable Codes and amounts in the Processing Memo space.

      Note:

      For more information on Unallowable Codes, refer to IRM 3.11.3.3.7.7.

    Line 6, Late filing code

    Returns may be received from Examination or Collection with penalty and interest amounts entered. These amounts may be edited on the return or the Form 3471 may have been edited and attached by Exam or Collections.

    Note:

    Use the instructions in IRM 3.11.3.14.3.5 when penalty and interest amounts are entered by the taxpayer.

    1. Edit "1" when Failure to File (FTF) or Failure to Pay (FTP) penalties or interest have been entered on a full or part-paid return and≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡

    2. Also edit a received date ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡" in this case.

    Note:

    for more information see the line-by-line instructions for returns received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Line 7, Pre-delinquent penalty Edit an amount when both of the following apply:
    1. The return has a received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. There is a notation this penalty is to be applied.

    Line 11, ID number penalty Edit "50" when there is a notation on the return this penalty is to be assessed and an amount is present.

    Note:

    Examination or Collection will indicate when this penalty is to be assessed.

Form 4227 - Intra-SC Reject or Routing Slip
  1. Some returns need research, referral, or action before they can be processed. Form 4227, Intra-SC Reject or Routing Slip, is often used to identify these special conditions and initiate actions.

  2. Take the following actions when a numbered return needs research, referral, or action before further processing:

    1. Edit the correct Action Code.

    2. Prepare Form 4227 and note the reason for rejection.

    3. Staple below the caption area of return.

    4. Leave the return in the block.

  3. Prepare Form 4227 when an unnumbered return/document is withdrawn from processing, and:

    If the return/document is Then
    Leaving the campus, Pull the document for routing to Receipt and Control for shipment to correct campus.
    Not leaving the campus, Pull the document for routing to the correct function.

Action Trail

  1. An "Action Trail" is written on a return/document as a record of the actions taken.

  2. Always leave an Action Trail when Computer Condition Code "Y" is edited. Give the reason for the "Y" code in the Action Trail.

  3. Edit an Action Trail when a return/document is detached. For example, notations such as "detached 1040-X" or "detached taxpayer correspondence" must be made on the return.

  4. The Action Trail is written on return or document in the lower-left margin of page 1. Refer to Job Aid 2431-009 for an illustration of the editing location.

Attachments to Return

  1. Examine all attachments to the return. Leave the attachments with the return unless specifically instructed otherwise. Refer to the Attachment Guide in Exhibit 3.11.3-1 for specific attachment-by-attachment instructions. Research either an attachment or a notation on the return, as needed.

  2. Immediately hand carry any discovered remittance to the manager or work leader. (Manager/work leader shall refer to IRM 3.8.46, Discovered Remittance).

    Note:

    Economic Impact Payment (EIP) Prepaid Debit Cards are considered discovered remittance and will be hand carried to the manager or work leader.

  3. Take either of the following actions when there is a notation on the return that indicates it needs to be routed elsewhere:

    1. Edit the information on a blank piece of paper.

    2. Photocopy the notation.

  4. Generally, all taxpayer-initiated correspondence must be responded to within 30 days.

    1. Detach and route all correspondence addressing an issue not directly related to the processing of the return.

      Note:

      Examples include, "I didn't receive my refund last year" , or "I need a payment plan" , etc.

    2. Do not detach correspondence attached to an original return which asks a question or raises an issue about the processing of the return or if the correspondence has only a general comment submitted with a payment.

      Note:

      Examples include, "Here is my payment" , "I will pay you in two months" , or "Apply my refund to the amount that I owe from last year" , etc.

  5. When a taxpayer submits a credit card and/or credit card number, fully code and edit the return and immediately take the return and all attachments to your work leader. The work leader will:

    1. Edit Action Code "460" , sanitize any credit card information on the return and continue processing.

    2. If a credit card is attached, prepare Form 4287, Record of Discovered Remittances, a photocopy of page one of the return, and route to Receipt & Control with the credit card to be returned to the taxpayer via Express Mail.

    3. Prepare Letter 3956C, Processing Form 1040 Received with Credit Card/Credit Card Information and send to the taxpayer via 1st Class Mail.

    Note:

    Do not take return to your work leader when you can determine the number written on the return is the confirmation number for the credit card payment (not the actual credit card number).

  6. Credit card payment returns must be batched as remittance returns so they will receive the remittance indicator. If the return is received with a credit card confirmation number and no amount is indicated, or the amount does not match the balance due line on the return, batch as Part Paid.

Detached Documents
  1. Always edit an Action Trail on the return when an attachment is removed. For example, when a form or letter is detached from a return, edit notations such as "detached 9465" or "detached TP correspondence" .

  2. Edit an Action Trail on the detached document unless it's an original personal document. If present on the return, all the following must be present or edited on all detached items:

    • Current date on current year returns if before ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, otherwise use the received date in "MMDDYY" format.

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on a timely return with no received date, edit a date of "041524" .

    • Tax period in "YYMM" format.

    • Form from which detached.

    • Taxpayer's name(s).

    • Primary/secondary taxpayer's identification number(s).

    • Taxpayer's address.

    See Figure 3.11.3-3.

    Note:

    When sending a return back to a taxpayer, do not detach any documents.

    Exception:

    Detach and process any remittance. Do not mail a remittance back to the taxpayer.

  3. Internally route detached items using Form 4227.

  4. When returning original documents back to the taxpayer, the work leader will complete and attach Form 14219, Return of Documentation to the Taxpayer. Check the correct box on Form 14219 to Identify the returned item.

    Figure 3.11.3-3

    This is an Image: 33440003.gif

    Please click here for the text description of the image.

Processing Codes

  1. Certain conditions require the editing of processing codes. There are seven types of processing codes. They are:

    • Action Code

    • Audit Code

    • Computer Condition Code (CCC)

    • Form Processing Code (FPC)

    • Return Processing Code (RPC)

    • Special Processing Code (SPC)

    • Unallowable Code (UAC)

  2. Processing codes may be either alpha or numeric. Use CAPITAL BLOCK LETTERS when editing codes that are alphas.

  3. It is critical that processing codes are edited legibly.

  4. Refer to Job Aid 2431-009 and Job Aid 2431-010 for an illustration of the editing locations of processing codes. The edited location of these codes may vary by return type.

  5. When other functions have edited CCCs, FPC, RPCs, SPCs, etc., in the wrong location, delete the coding and edit it to the correct location.

  6. Re-edit any valid black edit marks in red on photocopied returns, unless editing is underlined in red.

  7. The conditions for editing processing codes are located in the line-by-line instructions.

Action Code
  1. An Action Code is a three-digit numeric character used to reject a document and identify the reason for rejection.

  2. Assign only one Action Code to a document. Edit Action Codes in the following priority:

    1. "300"

    2. "310"

    3. "4XX"

    4. "6XX"

    5. "2XX"

    6. "3XX"

  3. Continue perfecting returns assigned any Action Code except "480" or "6XX" . Edit only the caption area when Action Code "6XX" is edited. When editing Action Code 480 edit the caption area and see IRM 3.11.3.7.5.

  4. Edit the Action Code as follows:

    1. Form 1040: edit in the center bottom margin directly below Form 1040, page 1.

    2. TY17 and prior: edit in the center bottom margin on page 1 of Form 1040A, and 1040EZ.

  5. Refer to the table in Exhibit 3.11.3-2 for an explanation of each Action Code.

Audit Code
  1. An Audit Code is an alpha or numeric character used to identify questionable conditions for Examination.

  2. Edit Audit Codes as follows:

    1. Form 1040: edit horizontally in the right bottom margin directly below Form 1040, page 1.

    2. TY17 and prior: horizontally in the right-bottom margin on page 1 of Form 1040A or Form 1040EZ.

  3. Refer to the table in Exhibit 3.11.3-3 for the explanation of each Audit Code.

Computer Condition Code (CCC)
  1. A Computer Condition Code (CCC) is an alpha or numeric character used to alert the computer and Master File of a special condition. Computer Condition Codes will post to the Master File.

  2. When CCC "3" is edited, it must be first.

  3. Always edit an Action Trail when CCC "Y" is edited.

  4. Edit the CCC horizontally in the blank area to the right of "Spouse itemizes on a separate return or you were a dual-status alien" .

    Note:

    For prior year editing location, see Job Aid 2431-010.

  5. Refer to the table in Exhibit 3.11.3-4 for an explanation of each CCC.

Form Processing Code (FPC)
  1. A Form Processing Code (FPC) is an alpha or numeric character used to alert the downstream users that a specific non-transcribed form is attached to the return.

  2. Edit FPCs vertically in the margin to the right of Form 1040, line 7 or Form 1040-SR, line 4b (For prior year editing location, see Job Aid 2431-010).

  3. Refer to the table in Exhibit 3.11.3-5 for an explanation of each FPC.

Return Processing Code (RPC)
  1. A Return Processing Code (RPC) is an alpha or numeric character used to alert the computer to a special condition or computation. These codes are used for center processing and do not post to the Master File.

  2. Edit RPCs horizontally in the left bottom margin directly below Form 1040.

  3. Refer to the table in Exhibit 3.11.3-6 for an explanation of each RPC.

Special Processing Code (SPC)
  1. A Special Processing Code (SPC) is an alpha or numeric character used to flag a condition or trigger a computation. These codes are used for center processing and do not post to the Master File. These codes supplement the Return Processing Codes.

  2. Edit SPCs vertically in the right margin next to the spouse’s social security number.

  3. Refer to the table in Exhibit 3.11.3-7 for an explanation of each SPC.

Unallowable Code (UAC)
  1. An Unallowable Code (UAC) is a two-digit numeric character used to identify certain conditions on a tax return that are unallowable by law.

  2. Search all attachments to find unallowable items.

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

    Exception:

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

  4. Do not edit UACs when the only dollar amount is a total of allowable and unallowable items. There must be separate dollar figures for unallowable coding, unless otherwise instructed.

  5. Prepare Form 3471 using the instructions at IRM 3.11.3.3.4.1 when coding unallowables.

  6. Refer to the table in Exhibit 3.11.3-8 for an explanation of each UAC.

Editing

  1. Editing is done to prepare returns and attachments for transcription and computer processing.

  2. The editing instructions described in more detail in this subsection are about:

    • Types and uses of specific edit markings

    • Dollars and cents editing

Edit Markings, General

  1. Always use a red erasable pen for edit markings. Perfect any taxpayer entered red marks that might interfere with transcription.

    Note:

    Never use other correction items, such as white-out.

  2. Never alter, erase, or obliterate a taxpayer's entry.

  3. Edit all markings legibly.

  4. Any reference to "significant entry" or "significant amount" is defined as a positive or negative number/dollar amount other than zero.

Types of Edit Markings

  1. Different edit conditions require different types of edit markings. Edit markings consist of:

    • Circling

    • Underlining

    • Arrowing

    • "X" -ing

    • Bracketing

    • Checking

Circling
  1. Circle information that is not to be transcribed when editing:

    • Caption data (except date of death)

    • Received dates

    • Filing status boxes

    • Other cases described in the line-by-line instructions

      Note:

      Never circle dollar amounts. If an entry or editing was circled out in error, re-edit or arrow to the proper location if necessary.

Underlining
  1. Underline when editing:

    • The additional information line and other caption data

    • Tax period on Prior Year returns

    • Other cases specified in this manual

Arrowing
  1. Use arrowing when indicating:

    • The correct T-line for a misplaced entry. (See Figure 3.11.3-4.)

    • Transcription is to continue (where indicated in line-by-line instructions)

    Note:

    A double-ended arrow or "underline with arrow" may be used to edit a dollar amount to one additional T-line. (See Figure 3.11.3-4.)

    Figure 3.11.3-4

    This is an Image: 33440004.gif

    Please click here for the text description of the image.

"X" -ing
  1. An "X" may be used to delete an entry or an entire form or schedule.

    1. Place an "X" to the left of an amount or entry on a T-line when it is not to be transcribed.

    2. When adjusting an amount, edit an "X" to the left of the amount on the T-line and edit the adjusted amount above or to the left of the "X" -ed entry.

    3. "X" an illegible amount and re-edit the information above or to the left of the "X" -ed entry. Be careful to edit the amount where it will not be mistaken for an entry on another T-line.

      Note:

      If necessary, edit the amount where space is available and arrow to the "X" -ed entry.

    4. Edit an "X" across the entire form or schedule if it must be deleted.

    5. "X" a transcribed schedule or form when it is blank or has no significant T-line entry, unless specifically instructed otherwise.

    6. "X" any transcribed schedule or form with "Alt Min Tax" , "AMT" , or "AMT-CR" or similar notation across the top and do not include entries when combining.

    Exception:

    Do not delete Form 6251, Alternative Minimum Tax-Individuals.

Bracketing
  1. Use brackets to indicate a negative dollar amount when editing.

    Note:

    Bracketing (as it relates to dollar amounts) is necessary only when the tax examiner is computing or editing the line.

  2. Do not bracket the following:

    • Existing negative amounts on a return.

    • Amounts with preprinted brackets on the form/schedule.

Checking
  1. Use the check mark as directed in line-by-line instructions to indicate the information needs to be transcribed by ISRP.

Edit Marks Made by Other IRS Functions
  1. Edit marks entered by another area (such as Collections, Entity or RIVO) are not to be re-edited except to place the edit marks in the correct area or to perfect for legibility.

    Exception:

    Re-edit or underline any valid black edit marks for transcription (i.e., photocopied/faxed returns such as those received from CII/AM).

Dollars and Cents Editing

  1. Allow taxpayers to round or truncate (i.e., "drop the cents" ) amounts. Use only dollar amounts when computing amounts on forms or schedules.

    Exception:

    Use dollars and cents when computing withholding and excess social security tax.

  2. For TY18 and prior only, draw a vertical line between the dollars and cents figures when dollars or cents are in the wrong column:

    1. On each line that is to be transcribed, or

    2. Down the entire front of the form or schedule.

    Exception:

    It is not required to draw a vertical line when column(s) are not present and the dollars and cents have been separated by a decimal.

  3. Dollars and cents editing is required on certain T-lines for any of the following conditions:

    1. A substitute form is used with dollars and cents not clearly separated by a decimal point or slash.

      Exception:

      Do not draw a vertical line to separate dollars and cents when only dollar amounts are present on a dollars and cents T-line.

    2. An entry is illegible.

    3. When computing and editing an entry as directed in line-by-line instructions.

      Exception:

      It is not necessary to edit "00" to indicate no cents.

  4. Edit all forms and schedules in dollars only, with the following exceptions:

    • Form 1040 - lines 24 through 38

    • Schedule 3, lines 9 through 14

    • Form 6001 and 6001-A

    • Form 3531

Correspondence

  1. Correspondence is necessary when a return is incomplete or illegible and it cannot be processed.

  2. The correspondence instructions in this subsection of the manual are:

    • General correspondence procedures

    • Correspondence when sending return back to the taxpayer

    • Correspondence when not sending return back to the taxpayer

General Correspondence Information

  1. When the first correspondence condition is identified, request all missing required information. Include forms and/or schedules, Forms W-2, regardless of correspondence tolerances identified in the line-by-line IRM instructions.

    Exception:

    Except for Form 1116, Form 8283, Schedule 8812, and Schedule EIC; only correspond for these forms when the tolerance in the line-by-line IRM instruction is met.

  2. Do not correspond with a taxpayer more than one time, unless specifically directed to in the line-by-line instructions.

    1. Correspond a second time if the taxpayer sends back a return and the signature is not located in the correct "Sign Here" area, under the jurat statement. For a taxpayer's signature to be valid, it must be in the "Sign Here" space provided under the jurat. The only exception to this rule is when the taxpayer has signed in the wrong area and arrowed their own signature to the right place.

  3. Do not correspond when information is missing and any of the following conditions apply:

    • The tax return is for TY13 and prior. (See IRM 3.11.3.73.3.)

      Exception:

      Correspond for signature regardless of tax year. (See IRM 3.11.3.14.5.)

    • The return has a notation indicating the return is a "dummy" return. Notations may include "Substitute for Return Prepared by IRS" , "Section 6020b" , or "prompt assessment" .

    • The return has a notation, statement or letter attached indicating the return is a copy or amended. Notations may include "corrected" , "revised" , "tentative" , "amended" , "superseding" , "copy" or similar. Also see the amended return instructions in IRM 3.11.3.6.2.1 for more instructions.

    • An Examination case is indicated. See the instructions in IRM 3.11.3.6.1.5 for more instructions and a list of the attachments and notations by which an Examination case may be identified.

    • The taxpayer has written "For payment only" , or included a similar statement on the return.

    • International returns (except AUSPC)

    • A "Hardship" case is indicated. (See IRM 3.11.3.6.1.4.)

    • There is an indication the return has been prepared (dummied) by Accounts Management. (See IRM 3.11.3.6.2.1(3).)

  4. Do not correspond for missing forms or schedules to support a credit or exemption claimed for a dependent when both of the following conditions apply:

    • The return was received with Form W-7 attached.

    • The ITIN application was rejected for the person who would have entitled the taxpayer to the credit and/or exemption.

  5. With the exception of returns coming from Collection and Correspondence Imaging Inventory (CII), send an unnumbered return to the originating area indicating what information is required.

General Correspondence Procedures

  1. Request a missing secondary TIN only when other correspondence is required and the Filing Status is Filing Status 2 (Married Filing Jointly), Filing Status 3 (Married Filing Separately), or Filing Status 6, or a spouse is claimed as a Dependent/Exemption.

    Exception:

    Do not request a secondary TIN when there is an indication the ITIN application was rejected or Non-resident Alien (NRA) or similar statement.

  2. Special additional information line editing is required any time correspondence is required on a:

    • Decedent return - see IRM 3.11.3.10

    • Fiduciary return - see IRM 3.11.3.11

    • Minor's return - see IRM 3.11.3.11.2

  3. If Form 1040 is missing page 1 or page 2 (Form 1040-SR, page 1, 2, or 3) pull for research.

    Note:

    Follow the incomplete return instructions at IRM 3.11.3.6.2.4.

Correspondence When Sending Return Back to the Taxpayer
  1. Send a return back to the taxpayer in the following specific circumstances:

    • A misfiled return. (See IRM 3.11.3.6.2.15.)

    • Early filed loose Schedule H for tax year 2024. Use Notice 1208, You Filed Schedule H (Household Employment Taxes) Too Early

    • Current year Loose Schedule H (received April 15, 2024 or earlier) - Use Notice 1207, File Schedule H (Household Employment Taxes) With Your Individual Income Tax Return

    • Missing or invalid signature(s) (See IRM 3.11.3.14.5.)

    Exception:

    Do not mail back when:
    Numbered
    Secured
    CP 01H, 11, 12, 14/14H, 22 series, 23, 54, or 2000 is attached. See Exhibit 3.11.3-1 for processing procedures.
    LTR 5071C, 5447C, 5747C, for 6167C is attached. See Exhibit 3.11.3-1 for processing procedures.
    LTR 2566 or 3219C unless Process as Original is present.
    Form W-7 or Form W-7(SP) is attached, route to ITIN
    Signed returns missing documentary evidence, including fiduciary and Power of Attorney (POA) returns.
    Natural Disaster is noted on return or attachment.

    Reminder:

    Do not correspond when conditions in 3.11.3.5.1(3) apply.

  2. If the required valid legal signature is missing or not below the jurat statement, send the return back to the taxpayer using Form 3531.

    Note:

    A valid legal signature is an original signature written below the jurat statement in the "Sign here" box on the return. If the return is not signed and a signature is present on an attached CP 59 or Form 15103, accept that as a valid signature on the return if signed under the jurat on the "sign here" line. Notate on the return signature line "See attached CP 59 or Form 15103". Do not detach CP 59 or Form 15103, leave attached as support for original signature.

    1. Stop editing the return after identifying a missing or invalid signature.

    2. Examine the return for other missing items.

    3. Complete Form 3531, request all missing required information. (See Exhibit 3.11.3-17):

    Exception:

    KCSPC or OSPC: If transshipping international returns or returns with Form W-7 attached, do not correspond for missing signature(s). AUSPC: Returns with W-7 attached, route to ITIN, do not correspond for missing signature.

  3. Prepare Form 3531 using the following steps:

    1. Write legibly.

    2. Check the missing signature box "1" .

      Note:

      Also check box "27" on decedent returns, see IRM 3.11.3.10.1(4).

    3. Check all the correct box(es).

    4. Enter money amounts in dollars and cents. Bracket negative amounts.

  4. Prepare the return to be sent back to the taxpayer using the following steps:

    1. Line through your TE number.

    2. Remove all internal documents (such as Form 3471 or Form 4227) if attached.

      Note:

      If second correspondence is required, remove original Form 3531.

    3. Do not detach attachments.

    4. Delete any IRS Received Date.

    5. Perfect a missing or incomplete address from an attached envelope. If unable to perfect from an attached envelope, research.

    6. Edit an Action Trail to notate "Returned for Signature" (stamped or edited), Form 3531 and any issued correspondence, with the current date unless it is being returned as a misfiled return. (e.g., Return for Signature MMDDYY or Return for Signature F3531, 1, 8, 11 MMDDYY). See Figure 3.11.3-5.

      Note:

      The date may be edited or stamped following local procedures for mailing.

    7. Attach the correspondence sheet face up to the return immediately below the caption area.

      Caution:

      When stapling the correspondence sheet to the return, ensure you are attaching only one return. Staple in the left margin through only the first one or two pages.

    8. Remove the return from the batch and place it in the designated area.

    Figure 3.11.3-5

    This is an Image: 33440005.gif

    Please click here for the text description of the image.

Correspondence When Not Sending Return Back to the Taxpayer
  1. Complete all possible editing and identify all correspondence issues, when you are not sending the return back to the taxpayer.

  2. Perfect a missing or incomplete address from an attached envelope. If unable to perfect from an attached envelope, research.

  3. Request all missing required forms/schedules in the taxpayer correspondence. Do not attempt to dummy missing forms/schedules when other correspondence is required.

  4. A correspondence action sheet (CAS) is a form used to initiate a letter requesting information from a taxpayer. A CAS is used with returns that are not sent back to the taxpayer. The following CAS forms are used:

    1. Form 6001 is used to generate Letter 12C, Individual Return Incomplete for Processing: Form 1040. (See Exhibit 3.11.3-16.)

    2. Form 6001-A, Letter 12C Correspondence Action Sheet (PY), is used to generate Letter 12C for TY22 and prior returns.

    3. Form 3696-A, IDRS Correspondence Action Sheet, is used to generate miscellaneous Correspondex (C) letters (e.g., Letter 369C used to deny reasonable cause).

  5. Prepare Form 6001/Form 6001-A to initiate Letter 12C using the following steps:

    1. Write legibly.

    2. Check all the applicable boxes.

    3. Complete all information required for each paragraph selected (e.g., forms, lines, amounts, etc.).

    4. Enter money amounts in dollars and cents. Bracket negative amounts.

    5. Use Exhibit 3.11.3-18, Correspondence Fill-in Paragraphs, when paragraph e is selected.

      Note:

      Take all other fill-in paragraphs to your manager/lead for their text approval and initials next to paragraph e.

    6. When paragraphs I - N are not enough to request all missing forms and schedules, use paragraph e with fill-in paragraph "36" instead.

    7. Always select the applicable fax number paragraph (h - j) specific to your campus.

      Note:

      No entry is required in the fill-in fields of the fax number paragraph (h - j).

  6. Attach the CAS to Form 1040 face up below the caption area.

    Caution:

    When stapling the correspondence sheet to the return, ensure you are attaching only one return and staple in the left margin.

  7. Edit Action Code "211" on all returns requiring correspondence when the return is not being mailed back to the taxpayer. (See Figure 3.11.3-6.)

    Exception:

    Edit Action Code "224" when corresponding for missing Form 8962 unless Action Code "300" can be edited. For TY17, edit Action Code "300" on all returns when any correspondence is required and 965 or Sec. 965 is noted on return or when line 73 box d is marked or when Form 965 is attached to return.

  8. If a received date is required and not present on the return, edit the received date before corresponding. Refer to the received date editing instructions at IRM 3.11.3.8.

    Figure 3.11.3-6

    This is an Image: 33440006.gif

    Please click here for the text description of the image.

General Response Procedures

  1. Move all correspondence sheets to the back of the return. If second correspondence is required, remove original Form 3531.

  2. See the instructions in Correspondence Action Chart at IRM 3.11.3.5.3.2 for processing "no reply" or "incomplete reply" , and undeliverable correspondence.

  3. When there is an indication of a possible disclosure issue, take return to work leader.

Reply Instructions
  1. Perfect the return.

  2. Edit the received date on returns identified as "Returned for Signature" , following the instructions at IRM 3.11.3.8.2(3).

No Reply/Incomplete Reply/Undeliverable Correspondence
  1. Use the Correspondence Action Chart and continue processing the return when any of the following no reply conditions are present:

    • Taxpayer does not provide all requested information.

    • Correspondence is returned by the USPS as undeliverable.

    • One or more correspondence conditions were not included when the first correspondence was sent.

  2. Edit CCC "U" on all no reply returns, except when any of the following apply:

    1. Withholding support was the only item not provided.

    2. The correspondence was not required.

    3. One or more correspondence conditions were not included when the first correspondence was sent.

      Note:

      Unless there is evidence to the contrary, assume that all correspondence conditions were included when the correspondence was sent.

  3. If a no reply correspondence condition is not identified in the chart below, edit CCC"U" unless a condition in (2) above applies, and take no further action.

  4. If CCC "3" is edited, edit it first.

  5. Refer to the following Correspondence Action Chart. All line numbers are for current year unless specified otherwise.

    Form 1040 Series Returns

    CORRESPONDENCE REQUIRED FOR THE FOLLOWING CONDITION ON FORM 1040 SERIES RETURNS ACTION REQUIRED FOR INCOMPLETE REPLY OR NO REPLY
    Dependent TIN - Dependents claimed with no TIN "X" dependent’s name.
    Signature
    • Missing or incomplete Jurat

    • Missing signature or only one signature on a joint return

    • Photocopied signature

    • Refund on a joint return and spouse refuses to sign

    • Condition requiring two witnesses

    • Minor child's return signed by other than a parent or relationship is not indicated

    1. Route undeliverable returns to the Entity Function and do not edit CCC "U" .

    2. If the taxpayer responds and sends back a return that shows the signature present in an area other than the Sign Here area under the jurat on the return, or has signed on Form 3531, send the return back to the taxpayer a second time.

      Exception:

      If the taxpayer signed an attached CP 59, Letter 143C or Form 15103, do not correspond for a signature under the jurat on the return. This signature is acceptable.

    3. If the return is not signed after correspondence (or second correspondence if applicable) for signature, edit Action Code "640" and continue processing.

      Exception:

      If the taxpayer signed an attached CP 59, Letter 143C or Form 15103, do not correspond for a signature under the jurat on the return. This signature is acceptable.

    Note:

    Edit only the caption area when Action Code "640" is edited.

    Blank return with missing signature. If the taxpayer returns an unsigned blank return, edit RPC "L" and continue processing. Also edit CCC "B" .
    Power of Attorney missing. If the return is not signed by the taxpayer, edit CCC "3" .
    Fiduciary Returns - required documentary evidence not present. Edit CCC "3" .
    Decedent Return  
    a. Date of Death missing a. Edit CCC "3" .
    b. Required documentary evidence not present. b. Edit CCC "3" . Do not edit the AIL or CCC "L" or "W" .
    c. Proper additional information line (AIL) cannot be determined. c. Edit CCC "3" . Do not edit the AIL or CCC "L" or "W" .
    d. Form 1310 not signed or is incomplete. d. Edit CCC "3" . Do not edit the AIL or CCC "L" or "W" .
    e. Signature missing on return but a completed Form 1310 with correct answers and signature is attached. e. See Signature instruction above.
    f. Signature missing on return and Form 1310 is attached, but not signed. f. See Signature instruction above.
     

    Form 1040, Pages 1 and 2

    MISSING ITEM ACTION REQUIRED FOR INCOMPLETE REPLY OR NO REPLY
    Line 7 - Schedule D or statement not attached.  
    a. Gain of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Schedule D not attached. a. Prepare dummy Schedule D and edit the amount on line 7.
    b. Loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Schedule D not attached. b. Prepare dummy Schedule D and edit the amount on line 7. Edit Audit Code "B" when the amount on line 7 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
    Line 25d - Amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and withholding document is not present. "X" the amount.
    Line 27 - Amount claimed and no source of earned income is present. Edit RPC "B" then "X" the amount.
    Line 28 - Amount claimed and Schedule 8812 not attached. "X" the amount.
    Line 29 - Amount claimed and Form 8863 not attached. "X" the amount.
     

    Schedules 1 through 3

    MISSING ITEM ACTION REQUIRED FOR INCOMPLETE REPLY OR NO REPLY
    Schedule 1 - not attached, Prepare dummy Schedule 1 from attachments if present. See IRM 3.11.3.14.2.16 and IRM 3.11.3.14.2.18.
    Schedule 1, Line 3 - Schedule C Prepare dummy Schedule C. Edit a positive amount on line 1 and 3. Edit a negative amount on line 28. Edit Audit Code "B" when the amount on Schedule 1, line 3 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
    Schedule 1, Line 4 - Form 4797, Form 4684, or statement not attached. Edit Audit Code "B" if a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is claimed.
    Schedule 1, Line 5 - Schedule E, statement, or clear indication of type of income missing. Prepare dummy Schedule E. Edit a positive amount on line 24, a negative amount on line 25. Edit Audit Code "B" when the amount on line 5 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
    Schedule 1, Line 6 - Schedule F or statement not attached. Prepare dummy Schedule F. Edit a positive or negative amount on line 9. Edit Audit Code "B" when the amount on line 6 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
    Schedule 1, Line 8b - Gambling net loss indicated and Schedule C not attached. "X" the amount on line 9.
    Schedule 1, Line 8z - Sec. 965 noted and Form 965-A not attached. Edit RPC "F" . For TY17, also edit Action Code "300" .
    Schedule 1, Line 12 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 2106 not attached. "X" the amount.
    Schedule 1, Line 13 - Amount claimed and Form 8889 not attached. "X" the amount.
    Schedule 1, Line 14 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 3903 not attached. "X" the amount.
    Schedule 1, Line 26 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and not supported by entry on lines 11 through 25, or a statement. "X" the amount on Form 1040, Line 10.
    Schedule 2 not attached. Prepare dummy Schedule 2 from attachments if present. See IRM 3.11.3.14.2.24 and IRM 3.11.3.14.2.28.
    Schedule 2, Line 4 - Schedule SE not attached. Divide SE Tax amount by .153 to determine SE income subtotal amount. Then divide the subtotal amount by .9235 to determine the SE income total amount. Edit the total amount on Schedule SE, line 3. Prepare a dummy Schedule SE for the primary taxpayer if Social Security wages are $160,200 or less; otherwise, prepare a dummy Schedule SE for the secondary taxpayer. See Prior Year instructions for correct prior year amounts.
    Schedule 2, Line 5 - Amount claimed and Form 4137 not attached. "X" the amount on line 7.
    Schedule 2, Line 6 - Amount claimed and Form 8919 not attached. "X" the amount on line 7.
    Schedule 2, Line 8 - Form 5329 not attached, the box to the left of line 8 has not been checked, no indication of No on line 8, and the amount claimed is not 10% of any combination of line 4b, 5b or attached Form(s) 1099-R. Prepare a dummy Form 5329. Edit the amount from line 8 to line 17 of Form 5329. Process for the primary taxpayer if a determination cannot be made.
    Schedule 2, Line 9 - Amount claimed and Schedule H not attached. "X" the amount.
    Schedule 2, Line 11 - Amount claimed and Forms 8959 not attached, "X" the amount.
    Schedule 2, Line 12 - Amount claimed and Form 8960 not attached, "X" the amount.
    Schedule 3 not attached. Prepare dummy Schedule 3 from attachments if present. See IRM 3.11.3.14.2.26 and IRM 3.11.3.14.2.36.
    Schedule 3, Line 1 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 1116 not attached. "X" the amount.
    Schedule 3, Line 2 - Amount claimed and Form 2441 with entry on line 11, not attached. "X" the amount.
    Schedule 3, Line 3 - Amount claimed and Form 8863 not attached. "X" the amount.
    Schedule 3, Line 4 - Amount claimed and Form 8880 not attached. "X" the amount.
    Schedule 3, Line 5a - amount claimed and Form 5695 is not attached. For TY23, "X" the amount. For TY22 and prior, "X" the amount if it is ≡ ≡ ≡ ≡ ≡ ≡ ≡, or any amount if only page 2 is attached.
    Schedule 3, Line 5b - amount claimed and Form 5695 is not attached. "X" the amount.
    Schedule 3, Line 7 - amount claimed and not supported by form/schedule for lines 6a-6z. "X" the amount.
    Schedule 3, Line 11 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and either no Form W-2 is attached or not all Forms W-2 are attached. "X" the amount.
    Schedule 3, Line 12 - Any amount claimed and Form 4136 not attached. "X" the amount.
    Schedule 3, Line 13a - ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 2439 or other refundable credits are not attached. "X" the amount.
    Schedule 3, Line 13b (SFL), (TY22) - amount claimed and Schedule H not attached. "X" the amount.
    Schedule 3, Line 13b (SFL), (TY21) - amount claimed and Schedule H and Form 7202 not attached. "X" the amount.
    Schedule 3, Line 12a (SFL), (TY20) - amount claimed and Schedule H and Form 7202 not attached. "X" the amount.
    For TY21 Schedule 3, Line 13g - amount claimed and Form 2441 with amount on line 10 not attached. "X" the amount.
    Schedule 3, Line 13h (SL2) (TY22) - amount claimed and Schedule H not attached. "X" the amount.
    Schedule 3, Line 13h (SL2), (TY21) - amount claimed and Schedule H and Form 7202 not attached. "X" the amount.
     

    Supporting Forms and Schedules

    SUPPORTING FORMS AND SCHEDULES ACTION REQUIRED FOR INCOMPLETE REPLY OR NO REPLY
    Schedule A  
    a. Line 7 -- Amount present, no entries on lines 5a through 6. a. "X" the amount.
    b. Line 10 - Amount present, no entries on lines 8a through 9, and line 5b is blank. b. "X" the amount.
    c. Line 12 - Amount present
    -≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8283 not attached or
    -≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Art is indicated on Form 8283 and separate appraisal not attached or
    -≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and separate appraisal not attached or
    - Form 8283, page 2, has significant entries but not signed.
    c. "X" the amount.
    d. Line 14 -- Amount present, no entries on lines 11 through 13. d. "X" the amount.
    e. Line 15 - Amount present and Form 4684 not attached. e. "X" the amount.
    Schedule B - Amount on line 3 and Form 8815 not attached. Adjust line 2b Form 1040 by adding the amount claimed on line 3, Schedule B. "X" line 3 on Schedule B.
    Schedule C - Line 31 - Loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, line 32b box is checked, and Form 6198 not attached. Adjust line 28, Schedule C, to equal line 7, Schedule C.
    Schedule E - Lines 28A through 28D - Loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ indicated in column (g) or (i), corresponding column (f) box (Check if any amount is not at risk) is marked, and Form 6198 not attached. "X" line 31, Schedule E.
    Schedule F - Box on line 36b checked, line 34 is a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 6198 not attached. Adjust line 33, Schedule F, to equal line 9 if the cash method is used or to equal line 50 if the accrual method is used.
    Schedule R
    • Boxes 1 through 9 are blank

    • No entry on line 11 and box 2, 4, 5, 6 or 9 is checked.

    • No entry on line 13c.

    "X" Schedule R.
    Schedule SE - Cannot determine the proper allocation of SE amounts. Process Schedule SE for the primary taxpayer if primary wages are $160,200 or less. Otherwise, process Schedule SE for the secondary taxpayer.
    Form 2441  
    a. Line 1, Column (c) is blank. a. "X" line 3, Form 2441.
    b. Line 2, Column (b) is blank. b. "X" qualifying person’s name.
    Form 3800 (Part III and Part IV) - Any entries present in Part III and Part IV, must be supported by the source form or show an EIN in Column d, Part III or Part IV. "X" any credits claimed in Part III or IV not supported by the correct source form or without an EIN in Column d, Part III or IV.
    Form 4137 - Cannot determine correct allocation. Process Form 4137 for the primary taxpayer if primary wages are $160,200 or less. Otherwise, process Form 4137 for the secondary taxpayer.
    Form 8606 - More than one name is present in the caption and proper allocation cannot be determined. Process Form 8606 for the primary taxpayer.
    Form 8615 - Parent's name control cannot be determined. Edit the primary taxpayer's name control.
    Schedule EIC
    • Number of months is not indicated.

    • Child's TIN is missing and no support for a child who was born in the tax period and died in the same or next consecutive tax period.

    "X" the child's name.
    Schedule H - Cannot determine proper allocation of Schedule H amounts. Process Schedule H for the primary taxpayer.
    Loose Schedule H - Cannot determine if Schedule H should be filed loose or attached to a Form 1040. Process Schedule H with a dummied Form 1040. (See IRM 3.11.3.44.15.)
    Form 8919 - Unable to determine which taxpayer is filing Form 8919. Process Form 8919 for the primary taxpayer if primary wages are $160,200 or less. Otherwise, process Form 8919 for the secondary taxpayer.
     

Special Situations and Returns

  1. While the instructions in this manual are generally based on the typical return, there are some special situations and return types that occur frequently enough to be included.

  2. The instructions included in this subsection of the manual include the following special situations:

    • Combat Zone and Other Military Operations

    • Killed in Terrorist Action (KITA)

    • Natural Disaster/Emergency Relief Program

    • Hardship (TAS)

    • Examination Cases

    • Frivolous Filer/Non-Filer returns

    • Identity Theft

    • Suicide Threats

  3. The special return instructions included in this subsection are for the following:

    • Amended Returns

    • Blank Returns

    • Blind Trust Returns

    • Blocked or Deferrable Income Returns

    • Correspondence Imaging Inventory (CII) Returns

    • Combined Tax Liabilities

    • Community Property Returns

    • Form 8938, Statement of Foreign Financial Assets

    • Incomplete Returns

    • Injured Spouse Returns

    • Innocent Spouse Returns

    • International Returns

    • Misblocked Returns

    • Misfiled Returns

    • Reinput Returns

    • Returns Secured by Collection

    • Short-period Returns

    • Substitute for Return

    • Uncomputed Returns

    • Unprocessable Returns

    • 52-53 week return

Special Situations

  1. Follow the instructions in this subsection of the manual in addition to the regular editing instructions, unless otherwise specified.

Combat Zone and Other Military Operations
  1. The deadlines for filing an income tax return and paying the income tax may be postponed for certain persons involved in the following types of military operations:

    1. Members of the armed forces and certain persons supporting them in a Combat Zone designated in an Executive Order by the President.

    2. Members of the armed forces serving in a contingency operation designated by the Department of Defense or arising by operation of law.

    3. Members of the armed forces serving in an area certified by the Department of Defense for which the member receives hostile fire/imminent danger pay.

    4. Members of the armed forces and certain persons supporting them in a Qualified Hazardous Duty Area (designated by an act of Congress).

  2. Generally, though, military personnel have the same filing requirements as civilians.

  3. Refer any question concerning a military return to your work leader. The work leader will hand carry the return to Tax Accounts when the proper action cannot be determined.

  4. Follow normal correspondence procedures when required information is missing from the return. (See IRM 3.11.3.6.1.1.2.)

Military Operations
  1. Take the following actions when a military operation is noted on the return:

    If the taxpayer notes And the Tax Year is Then
    "Military Spouses Residency Relief Act" , "MSRRA" or similar statement at the top of their return, 09 or later,
    1. Edit CCC "M" .

    2. Edit CCC "P" .

      Note:

      If the taxpayer shows no wages present on line 1a Form 1040 and withholding is significant on line 25a-25d and line 35a, Form 1040 shows a refund of all withholding, edit RPC "G" .

    3. If the MSRRA filing is FS 3, the following signed and dated declaration must be present:
      "I am claiming ___________ as my residence or domicile under the Military Spouses Residency Relief Act (MSRRA). Under penalties of perjury, I declare that I am qualified for relief under MSRRA because I am present in __________ solely to accompany my spouse, who is a service member serving in compliance with military orders and my claimed residence or domicile is the same as my spouse's residence or domicile." Take no action if not attached.

    "Haiti" or "Operation Unified Response" , 09 - 10, Edit CCC "Z" if Form W-2 is not issued by Department of Defense (DOD) or Defense Finance and Accounting Services (DFAS).
    • "Operation New Dawn" ,

    • "New Dawn" ,

    • "Enduring Freedom" ,

    • "Operation Enduring Freedom" ,

    • "Operation Iraqi Freedom" ,

    • "Iraq" ,

    • "Operation Noble Eagle" ,

    • Sinai Peninsula-Egypt,

    • "Combat Zone" OR similar statement,

    01 or later,
    1. Check to see if Form W-2 is from the Department of Defense (DOD) or Defense Finance and Accounting Services (DFAS).

      1. If Form W-2 is issued by DOD or DFAS, take no action.

      2. If Form W-2 is NOT issued by DOD or DFAS, edit CCC "K" .

    • "Desert Storm" ,

    • "Joint Guard" ,

    • "Joint Forge" ,

    • "Northern Forge" ,

    • "Northern Watch" ,

    .
    90 or later, Edit CCC "Z" .
    "Former Yugoslavia" , 00 - 94,
    1. Edit CCC "D" .

    2. Edit CCC "M" if balance due.

    • "Haiti" ,

    • "Operation Uphold Democracy" ,

    • "Operation GTMO" ,

    94 or later,
    1. Edit CCC "D" .

    2. Edit CCC "M" if balance due.

    • "Somalia" ,

    • "Somalia Restore Hope" ,

    92 or 93,
    1. Edit CCC "D" .

    2. Edit CCC "M" if balance due.

    "UN Operation" , 92 or later,
    1. Edit CCC "D" .

    2. Edit CCC "M" if balance due.

    Note:

    Colombia is not a recognized military operation

  2. Edit CCC "Y" and an Action Trail when a military operation or tax period other than one listed in the table in (1) above is named.

  3. Edit CCC "Y" and an Action Trail when the taxpayer excluded income due to combat or military pay.

Correspondence on Military Operation/Combat Zone Returns
  1. One signature is acceptable on a joint return in the following situations:

    • Spouse overseas and signing spouse authorized by a power of attorney (e.g., Form 2848) or similar signed document which clearly defines the scope of authorization granted to the POA.

    • Spouse in combat zone/qualified hazardous duty area and signing spouse attaches statement.

    • Spouse is member of the Armed Forces who is in a missing status in a combat zone.

  2. Follow normal correspondence procedures when other required information is missing from the return.

  3. Address the correspondence to the authorized person when a Power of Attorney (POA), or similar signed document, clearly defining the scope of authorization granted to the POA, is attached.

Killed in Terrorist Action (KITA)
  1. Route all returns identified as "KITA/KIA" , "KITA-Oklahoma City" , "KITA-9/11" or "KITA-Anthrax" to CII/AM and notate KITA in the Action Trail.

    Note:

    Hand-carry KITA returns to the Work Leader unless batched as KITA or follow local procedures.

  2. Route Form 1040 returns when the taxpayer has written "Sec 692(d)(2)" on the "Other Payments" line with a money amount to the right, to CII/AM and notate KITA in the Action Trail.

  3. Prior year Form 1040A or 1040EZ with "Sec 692(d)(2)" written anywhere on the return must be converted to a Form 1040 before sending the return to CII/AM.

Natural Disaster/Emergency Relief Program
  1. The taxpayer may identify the name of a disaster or emergency on the front of their return, on an attachment, or may notate "Federally Declared Disaster" .

  2. If the taxpayer requests the refund be mailed to a temporary mailing address, edit Action Code "341" .

  3. Correspond for any missing required signatures, forms and schedules using Form 6001/6001-A. Do not send the return back to the taxpayer.

    Exception:

    Do not correspond for withholding, excess social security tax, or source of earned income.

Hardship (Taxpayer Advocate Service (TAS))
  1. The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see https://www.irs.gov/taxpayer-bill-of-rights.

  2. Taxpayers, their representatives, or IRS employees may complete Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), when a taxpayer is experiencing a hardship. Hardship alone, however, is not a basis for referring cases to the Taxpayer Advocate Service (TAS). The IRS must take steps whenever possible to resolve the matter before referring the taxpayer to TAS.

  3. Refer a return with a notation of an actual or potential hardship to your work leader. The term hardship is used broadly and covers more than just hardship in a financial sense. TAS has developed nine criteria to determine which taxpayers qualify for TAS assistance.

  4. The work leader will determine if hardship criteria has been met and if so, complete the Form 911 (using Form instructions), if not already attached. Route Form 911 to TAS and continue processing the return.

  5. The local Taxpayer Advocate will make the final decision on whether a taxpayer meets TAS criteria. See IRM 13.1.7 for a complete list of TAS case criteria. Refer to the Attachment Guide in Exhibit 3.11.3-1 for procedures for routing Form 911 to the TAS Office and Taxpayer Advocate Service Case Criteria, for further instructions.

  6. When local Taxpayer Advocate walks a return through Code and Edit, in addition to normal editing, perform all actions below:

    1. Edit CCC "O" .

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

    3. "X" the refund line on the return.

      Note:

      If correspondence conditions are identified during editing, give the return back to TAS and do not correspond.

Examination Cases
  1. Ensure review boxes are established in Code and Edit for Examination (Exam). (See Exhibit 3.11.3-14.)

  2. Returns with the following notations or attachments have been Examination cases. Edit these returns using regular editing procedures except for the special instructions in this subsection of the manual.

    • "Exam has original delinquent return – Process this copy as an original"

    • "Original delinquent return secured by Examination"

    • Form 3198, Special Handling Notice for Examination Case Processing

    • Examination work papers

    • Copy of Form 5546, Examination Return Charge-Out Sheet

    • Form 13133, Expedite Processing Cycle

  3. Follow the instructions about penalties in the blocks in the special handling area of Form 3198. Also, follow the instructions noted in the blocks at the bottom of the Form 3198.

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

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

  6. If the return cannot be processed, route the return to Examination for additional action using Form 4227. Note on Form 4227, "return to originator" .

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

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

    Exception:

    Refer an unprocessable return to the work leader when Form 13133 is attached. The work leader will contact the Examining Officer at the number provided to resolve the problem.

Frivolous Filer/Non-Filer Returns
  1. Ensure review boxes are established in Code and Edit for Frivolous Return Program (FRP). (See Exhibit 3.11.3-13.)

  2. Route to Frivolous Return Program (FRP) any return on which the taxpayer:

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

    2. Makes use of a frivolous argument to reduce income or tax liability. (See (6) below for examples.)

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

      Note:

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

  3. Pull unnumbered returns and prepare Form 4227. Notate "Frivolous" .

  4. Leave numbered returns in the block and edit Action Code "331" , unless otherwise noted.

  5. When a return meets criteria for a frivolous filing determination as shown in paragraph (6) below, route the return to FRP. FRP will review the return and if it meets their criteria for frivolous filing, they will edit or stamp Audit Code "R" .

  6. Some common examples of frivolous returns are listed below. This list is not all-inclusive, but represents the current most common types of frivolous filings. See Exhibit 3.11.3-13 for more examples and complete descriptions.

    • All withholding from Form 1099-OID and/or Form 1099-A.

    • Form 2439 of $10,000 or more.

      Example:

      Mutual funds and real estate investment trusts (REITs) are the most common sources of Form 2439. Some fraudulent uses are obvious. Filers may create a Form 2439 in the name of their employer and file it along with the Form W-2 from that employer. Filers may create a Form 2439 in the name of well-known businesses, such as restaurants and department stores. These Forms 2439 and others from unlikely sources are suspect.

    • Wages not income.

    • Wages of primary taxpayer deducted on Schedule A or C.

    • Zero return with and without refund claimed.

    • Zero return with and without Forms W-2 attached.

    • Zero return with frivolous argument.

    • Zero or little income return and substitute Form W-2, Form 4852 or corrected Form 1099 attached.

    • Altered Form or Jurat, or a reference to "UCC 1-308" .

    • Entitlement refund request - The filer asserts an exemption from taxation and requests a refund related to their birthright. These include Reparations for Slavery (40 Acres and a Mule, Black Investment Tax, African American Tax, etc.), Native American Indian Treaty, Bosnian Refugee, Daughters of the American Revolution, etc. Filers often use Form 2439 in aid of these frivolous arguments and the suspect Form 2439 provides the source of the refund.

    • Constitutional amendment - 1st, 5th, 13th, 16th, etc. - cited in defense of an assertion that the tax code is unconstitutional.

    • IRC cited in defense of exemption from taxation - IRC 861, 1001, 1341, 3121, etc.

    • Taxes are voluntary; the IRS has no authority; the law does not require.

    • Not a person, not a citizen, untaxed.

    • Protest against government action or inaction.

    • Prisoner return citing any frivolous argument.

    • Prisoner return attaching calculations of income derived from work assignments within the prison and generally claiming a refund of withholding, perhaps supported by substitute Form W-2.

    • Confused taxpayer filings - outlandish dollar amounts on any line or nonsensical gibberish.

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

    • Form 2555 - Deduction used on line 8d, Schedule 1, to eliminate income even though taxpayer and employer are U.S. residents.

      Note:

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

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

Suicide Threats
  1. If the taxpayer makes a suicide threat in written correspondence, give the correspondence to the manager/lead who will take the following actions:

    Step Action
    a) Prepare a Form 13090, Caution Indicator Referral Report, ensuring the form has:
    • The facts necessary to explain the incident, describing the exact words used by the taxpayer;

    • The taxpayer’s Social Security number.

    b) Provide a completed Form 13090 to their immediate manager.
    c) Submit the Form 13090 to the OEP via fax, mail or a secure E-mail message:
    • Secure e-mail to: ChiefOEP@irs.gov.

    • e-Fax @ (855)786-9490.

    • Regular mail:
      Internal Revenue Service
      Office of Employee Protection
      P.O. Box 330500 Stop 30
      Detroit, MI 48226

  2. See IRM 25.4, Employee Protection, for more information.

Special Returns

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

Amended Returns
  1. Take a fully coded/edited return to the work leader when any of the following notations or conditions are present:

    • Amended

    • Corrected

    • Revised

    • Superseding

    • Tentative

    • Duplicate

    • Copy

    • Substitute

    • Filed

    • Attached IRS Notice indicating a previous return posted for the same tax period.

    • Taxpayer statement is present indicating the return is a copy of an accepted electronically filed return.

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

    • ITIN return indicating the return has been submitted for W-7 renewal only.

    • Form 15103 attached with box "I already filed my tax return for" marked with the same year as the return.

    • Any indication the taxpayer has previously filed the return.

    Exception:


    - Process the return as an original if "No TC150" has been annotated or if "Secured by Collections" or "TC-599-XX" appears anywhere on the return.
    - Process a photocopied return as an original when "Process as Original" has been edited on the return, indicating Exam has the original, delinquent return. If correspondence is required, see IRM 3.11.3.5.1(3).
    - Process the return as an original if SPC "B" .

  2. The work leader or other trained employee will take the following actions:

    1. Research for the status of the return using the primary TIN and the tax period of the return. Refer to Job Aid 2431-009 for command code instructions.
      • Research CC IMFOLT for a TC150 to determine if a return has already posted.
      • Research CC ERINV to determine if there is a return in ERS.

    2. Research results:
      • If a TC150 has posted for the tax period of the return, route to 1040-X unit.
      • If there is already a return in ERS for the same tax period, route to Rejects.
      • If no TC150 has posted and no return is in ERS, continue processing as an original return.

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

  4. If a return with or without a notation of "TC150" is received and "PAO" is edited in the upper left margin, continue processing as an original return. Correspond, if necessary.

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

    1. Edit Action Code "460" .

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

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

  2. Handle unprocessable returns as follows:

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

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

    Unnumbered, Give the return to your work leader. The work leader will destroy the return per classified waste procedures.

Blank Return
  1. Edit RPC "L" and CCC "B" on returns with all zeros or no significant T-line entries present, or edited from attachments, on any of lines 1a through 38.

    Reminder:

    Correspond for a missing signature on a blank return using Form 3531, box 9.

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

  3. Treat the blank return as amended when a statement is present indicating that a return will be filed later. Route the return to 1040-X.

  4. Edit CCC "E" when a statement indicates the taxpayer will have no future filing requirements (such as "final return" noted).

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

  6. Refer to IRM 3.11.3.6.2.19 for processing instructions when there is an indication the return is a Substitute for Return (SFR) or an Automated Substitute for Return (ASFR).

  7. If a return is blank and missing signature, correspond using Form 3531, box 9.

Incomplete Return
  1. If a Form 1040 or TY17 and prior Form 1040A is missing page 1 or page 2, or Form 1040-SR, missing pages 1, 2, or 3, research as necessary.

  2. Follow instructions below for research:

    1. Research for the status of the return, including CC ERINV for a possible ERS status.
      • If TC150 has posted, route to Form 1040-X unit.
      • If there is already a return in ERS, route to Rejects.

    2. If no TC150 has posted and not in ERS, dummy page 1 caption area if necessary, prepare return for correspondence and request all missing information. Research for an address, if necessary.

    3. If unable to correspond, destroy the page per classified waste procedures.

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

    Note:

    Do not edit CCC "B" on uncomputed returns.

  2. An uncomputed return can be identified when Form 1040 has no entries on lines 16, 17, 18, 22, 24, 34, 35a, 36 and 37. (See Figure 3.11.3-7.)

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

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

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

    2. No dependents are claimed in positions 1 through 6, or an allocation of dependents is indicated.

    Figure 3.11.3-7

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    Please click here for the text description of the image.

Blocked or Deferrable Income Return
  1. If a return with a notation of blocked or deferrable income is attached to another return:

    1. "X" the blocked income return, place behind the processable return and continue editing.

    Note:

    Blocked or deferrable income is not an indication of an international return.

  2. If a return with notation of blocked, deferrable income or Rev. Rul. 74-351 is not attached to another return, take to work leader.

    1. The work leader or other trained employee will take the following actions:
      Research for the status of the original return using the primary TIN and the tax period of the return. Refer to Job Aid 2431-009 for command code instructions.
      Research CC IMFOLT for a TC150 to determine if a return has already posted.
      Research CC ERINV to determine if there is a return in ERS.

    2. Research results:
      If a TC150 has posted for the tax period of the return, route to Files unit to be associated with return.
      If there is already a return in ERS for the same tax period, route to rejects.
      If no TC150 has posted and no return is in ERS, send the informational return marked "Blocked or Deferrable Income" back to the taxpayer using Form 3531 and the following literal paragraph: "We received your informational return regarding deferrable income, pursuant to Rev. Rul. 74-351 however, we have not received an original tax return. You must attach this document to your original tax return when you file your return for the same tax period."

Correspondence Imaging Inventory (CII) Returns
  1. CII returns are identified by a unique 10 character alpha numeric identifier that begins with the letters CII (e.g., CII1A2BCD1).

    Note:

    You may find returns identified as "CIS" returns or "CIS" stamps on the returns, follow instructions for editing "CII" returns when CIS is noted.

  2. Process CII returns as original filings and circle any notations of duplicate, amended or similar statements.

  3. Re-edit any valid black edit marks in red on photocopied returns.

    Exception:

    Do not re-edit CII returns when editing is underlined in red.

  4. Do not correspond for any missing required information. Do not correspond for a missing signature. If any required information is missing or incomplete edit CCC "3" .

    Exception:

    If correspondence is required and Form 13596 and/or Form 3893 is attached, route the return back to Accounts Management.

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

    • More than one tax period.

    • More than one type of tax.

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

    • More than one person filing a single return.

  2. If any of the conditions in (1) apply, edit CCC "Y" and an Action Trail on the return.

  3. Take no action when the return shows an ITIN and supporting documents reflect an SSN for the same taxpayer.

Community Property or Registered Domestic Partnership Return
  1. If there is an indication of Registered Domestic Partnership, "RDP" , "CCA 201021050" , or "CCA" on the return or an attached Form 8958, Allocation of Tax Amounts Between Certain Individuals in Community Property States, with a spouse or RDP SSN listed in column B or C with a significant amount in that column. or allocation statement, edit Action Code "430" . IRM 3.11.3.56

  2. "X" any fractional exemption claimed.

  3. "X" the amount claimed for Excess Social Security taxes when wages are less than $80,100.

    Note:

    The maximum amount of earnings subject to Social Security tax is $160,200. Half of that equals $80,100.

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

    1. A S-TIN is present

    2. Lines 1a-7 Form 1040 and lines 1-10 and 11-26 Schedule 1 have no entries.

Form 8938, Statement of Foreign Financial Assets
  1. Use the following information for processing ALL Form 8938, Statement of Foreign Financial Assets, regardless of tax years.

    January through September - (Recovery Processing) October through December - (Simultaneous Processing)
    1. Process Form 1040 using current coding instructions, including the editing of FPC "G" .

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

      Note:

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

    1. Fully code Form 1040, including the editing of FPC "G" .

    2. Only one Form 8938, pages 1 and 2, can be processed. If multiple Forms 8938 are attached, select the form that has the highest account, line 23 in Part V; or highest value, line 32 in Part VI, and delete the others.

      Note:

      Up to 25 pages of the "Continuation Statement" can be processed.

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

      Note:

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

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

    Note:

    For TY20 and prior Forms 1040 or Forms 8938, do not pull, edit FPC "G" and continue processing.

    Reminder:

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

  2. Management may implement simultaneous processing early. Coordinate with local Planning and Analysis Staff prior to implementing simultaneous processing to ensure pipeline resources are adequate and PCDs are not impacted.

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

  2. Form 8379 may be filed with an original return or by itself. Claims filed without an original return will be routed to ICT.

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

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

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

    2. Edit Action Code "611" .

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

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

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

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

    1. If TC150 is present, move the Form 8379 to the front, delete (X) the return and route to ICT.

    2. If no TC150 is present, correspond.

Form 8857, Innocent Spouse Relief Request
  1. A taxpayer may make a claim for relief from joint and separate tax liability or "relief from liability for community income" in the following four ways:

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

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

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

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

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

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

  4. Innocent spouse relief requests are processed at Campus Support Operation (CSO) only. When the taxpayer either attaches correspondence to the return that identifies him/her as a claimant or when Form 8857 is attached to the return:

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

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

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

    4. Give the request to the work leader.

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

  5. Send all claims to CSPCdaily, using the following address:
    Internal Revenue Service
    CSO (Campus Support Operation)
    Stop #840F
    7940 Kentucky Drive
    Florence, KY 41042

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

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

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

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

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

    • Form 1040 GUAM, Guam Individual Income Tax Return

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

    • Form W-2 from CNMI (W-2CM)

    • Form W-2 from Guam (W-2GU)

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

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

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

    • Form 1040-NR-EZ, U.S. Income Tax Returns for Certain Nonresident Aliens With No Dependents (TY19 and prior)

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

    • Form 1040-SS (sp), Declaración de Impuestos Federal sobre el Trabajo por Cuenta Propia (Incluyendo el Crédito Tributario Adicional por Hijos para Residentes Bona Fide de Puerto Rico)

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

    • Form 1042-S or letter signed by "Competent Authority" , Form SSA-1042S, or Form RRB-1042S or notation of Form 1042-S anywhere on the return

    • Form 2555, Foreign Earned Income or notation of Form 2555 or Housing Deduction anywhere on the return

    • Form 2555-EZ, Foreign Earned Income Exclusion (obsolete 2019 and later).

    • Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa

    • Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI)

    • Form 8288-A, Statement of withholding under Section 1445 or notation of Form 8288-A anywhere on the return

    • Form 8689, Allocation of Individual Income Tax to the U.S. Virgin Islands or notation of Form 8689 anywhere on the return

    • Form 8804, Annual Return for Partnership Withholding Tax Under Section 1446

    • Form 8805, Statement of Withholding under Section 1446 or notation of Form 8805 anywhere on the return

    • Form 8813, Partnership Withholding Tax Payment

    • Form 8833, Treaty-Based Return Position Disclosure

    • Form 8854, Initial and Annual Expatriation Information Statement

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

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

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

      Exception:

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

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

      Note:

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

    • Treaty Trader

    • Fulbright Grantee

    • Notation of "Streamlined" on the return

    • Form 14653 (Streamlined Foreign Offshore)

    • Form 14654 (Streamlined Domestic Offshore)

    • Other Streamlined certification

    • IRC 871, 893, 911, 913, 931, 932, 933, 934 or 935 of the Internal Revenue Code (IRC) or Section 6114, is notated anywhere on the return.

    • Notation of "Relief for Certain Former Citizens" , Relief, Expat, FAQ 24, FAQ 25, or something similar is written on the return and/or any attachments.

    • Copy of Certificate of Loss of Nationality (CLN) is attached.

    • Taxpayer specifically mentions "Relief" , "Former Citizen" , "Expatriate process" , "FAQ 24" , "FAQ 25" , or something similar in an attached letter.

      Caution:

      If none of the international conditions listed above are present, consider it a domestic return and continue processing.

  2. Do not route returns to AUSPC unless one of the forms or conditions at IRM 3.11.3.6.2.13(1) is present or the taxpayer excludes income.

    Note:

    Foreign income (Usually reported on line 1, Form 1040), FEC noted on line 1, Form 1040, or the presence of Form 1116 alone does not qualify for treatment as an international return. Do not forward these returns to AUSPC.

  3. Immediately forward international returns -- in their entirety -- to AUSPC at the following address:
    Internal Revenue Service
    Mail Stop 6054 AUSC
    P.O. Box 934
    Austin, TX 78767

    For Private Delivery Service (PDS) Mailing:
    Internal Revenue Service
    Mail Stop 6054 AUSC
    3651 S IH 35
    Austin, TX 78741

    Exception:

    Immediately forward returns that have any of the following characteristics and do not have an LB&I stamp indicating that LB&I has already reviewed it to AUSPC LB&I at the address below:
    "Relief for Certain Former Citizens" , "Relief" , "Expat" , "FAQ 24" , "FAQ 25" , or something similar is written on the return and/or any attachments.
    Form 8854 is attached.
    Copy of Certificate of Loss of Nationality (CLN) is attached.
    Taxpayer specifically mentions "Relief" , "Former Citizen" , "Expatriate process" , "FAQ 24" , "FAQ 25" , or something similar in an attached letter.
    Form 8898 is attached.

    Internal Revenue Service
    Mail Stop 4301 AUSC
    3651 S IH 35
    Austin, TX 78741

    For Private Delivery Service (PDS) Mailing:
    Internal Revenue Service
    Mail Stop 4301 AUSC
    3651 S IH 35
    Austin, TX 78741

    Austin route to MS 4301 AUSC.

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

    1. Stop editing.

    2. Route the entire return to AUSPC.

      Exception:

      AUSPC only: Route to Receipt & Control for rebatching.

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

    1. Leave the return in the batch and edit Action Code "651" . (See Figure 3.11.3-8.)

      Exception:

      AUSPC only: Edit Action Code "610" .

    2. Stop editing.

    Figure 3.11.3-8

    This is an Image: 33440008.gif

    Please click here for the text description of the image.

Misblocked Return
  1. A misblocked return is one found in a block of work other than the one in which it belongs.

    Example:

    Current Year Form 1040 in a Prior Year Form 1040 batch or an ITIN return in a batch of regular work.

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

    Caution:

    To ensure accuracy in the rebatching of returns the remittance indicator must be true to that batch. For example, all full-paid returns must be batched together, all part-paid returns, etc. Also, credit card payments returns must be identified as remittance returns and batched as full or part paid returns.

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

    If Then
    Form 1040A or Form 1040EZ is found in a Form 1040 block, Convert entries to Form 1040 format and continue editing.
    If a prior year return is found in a current year block, Process the return using the prior year instructions in IRM 3.11.3.73.
    Form not in the 1040 series is found in a Form 1040 block, Refer the return to your work leader.

Misfiled Return
  1. A misfiled return is a Form 1040 series return that meets any of the following criteria:

    • Business entity with an EIN

    • Business entity missing a TIN

    • Individual Master File (IMF) caption with an EIN

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

  2. Route a return with any indication of Limited Liability Corporation (LLC) in the caption or signature areas to Entity for research.

    Note:

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

  3. Send a misfiled return back to the taxpayer with box 10 checked on Form 3531.

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

  2. Take the following actions when processing reinput returns:

    1. Delete any unnecessary Action Codes.

    2. Delete any incorrect codes and edit marks.

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

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

    5. Follow the special editing instructions under "Remarks" on the Form 3893 (See Figure 3.11.3-9.)

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

      Reminder:

      Edit a newly issued SSN/ITIN on all attached Form or Schedules when one is required.

      Note:

      Some re-entry returns may be rejected e-file returns coming from Accounts Management. These returns are identified by the presence of Mod e-File printouts (TRPRT- valid for prior year only) in lieu of the actual return. The printout will have "TRPRT PRINT DO NOT PROCESS" or "Efile Graphic Print" present. Do not correspond for missing signatures on these types of returns.

    Figure 3.11.3-9

    This is an Image: 33440009.gif

    Please click here for the text description of the image.

  3. Use the following instructions when editing a received date from the DLN on either a current or prior year reinput return.

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

    Note:

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

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

    Note:

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

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

    Exception:

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

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

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

    2. Delete all green or blue written money amounts.

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

    Exception:

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

  2. Do not research for TC150 on Secured Returns

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

    Note:

    This includes support for EIC when wages are present or excess Social Security Tax (SST) is present.

  4. Do not correspond for missing signature if Process as Original is present on the return.

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

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

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

Short Period Return
  1. Taxpayers can file a return for fewer than 12 months only under one of the following conditions:

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

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

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

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

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

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

    1. Complete Form 3531/6001, using fill-in 4, per Exhibit 3.11.3-18.

    2. Edit Action Code "211" when using Form 6001.

  3. Short Period returns require the following additional editing:

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

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

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

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

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

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

  5. Edit the SE Quarters Covered Code in the margin to the right of line 4c of Schedule SE. Code the SE quarters covered as follows:

    • Code "1" for one quarter.

    • Code "2" for two quarters.

    • Code "3" for three quarters.

    Note:

    Do not code for four quarters.

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

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

    • Filing status

    • Name(s)

    • TIN(s)

  3. Edit RPC "L" and CCC "B" when there are no significant T-line entries on lines 1a through 38.

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

    1. Edit the tax period if other than 2312.

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

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

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

    1. Edit the tax period if other than 2312.

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

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

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

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

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

    • Fresno Campus Support, Stop 81105, 3211 S. Northpointe Dr., Fresno, CA 93725

    Note:

    AUSPC route to Collection unless Collections has cleared the return. If Process as Original or Process as Original Faxed Return and 59X-09X notated on return, fully code and process the return.

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

    Reminder:

    Route to Statute for clearance prior to processing if required.

52-53 Week Return
  1. This is the only type of return that may have a tax period ending prior to the last day of a month.

  2. Tax periods reported under the 52-53 week rule may end no more than 6 days before, and no more than three days after, the end of a month. In the edit format, use the numeric designation of the month, the last day of which is closest to the actual ending date.

    Note:

    When editing, use the last day of the month which is closest to the ending date. If the tax year ends within the first three days of the month, use the previous month in the tax period. If the tax year ends within six days of the end of the month, use that month in the tax period.

    Example:

    If the ending date is September 3, 2023, use the numeric designation for August (2308). If the ending date is October 28, 2023, use the numeric designation for October (2310).

  3. If the tax period is missing, illegible, invalid, or is longer than one year, assume the tax period to be the current calendar year if it makes the form timely.

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

  2. If there is any indication on the return or an attachment, a General Power of Attorney, or Form 2848 attached that indicates "Blind Trust" , see IRM 3.28.3.6.

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

Tax Period

  1. These instructions for tax period editing include:

    • General instructions

    • Current calendar year returns

    • Fiscal year returns

    • Prior year returns

    • Early filed returns

Tax Period, General Instructions

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

  2. Consider all returns to be current calendar year (i.e., 2312) returns, unless otherwise indicated.

  3. Edit tax periods other than the current calendar year to the right of the preprinted tax year in "YYMM" format (e.g., "2403" ). (See Figure 3.11.3-10.)

  4. Current year returns are defined as a Form 1040 and the tax period can’t end earlier than 2312 (December 2023) or later than current year and month.

    Figure 3.11.3-10

    This is an Image: 33440010.gif

    Please click here for the text description of the image.

Current Calendar Year Return

  1. Process the return as a current calendar year return when the tax form is for a prior year, but the Form(s) W-2 is for the current calendar year. Pull for work leader or follow local procedures.

  2. The work leader will:

    • Convert to a current year by dummying a current year Form 1040

    • Include any Schedules 1 - 3 as necessary.

  3. When the taxpayer attaches prior year forms or schedules to a current year return, re-number T-lines to match the current year form or schedule.

  4. Number T-lines with entries when line numbers are missing or illegible.

Fiscal Year Return

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

    1. Edit the tax period in YYMM format. See Figure 3.11.3-10.

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

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

    Note:

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

Prior Year Return

  1. A prior year tax return is a Form 1040 series return filed for a tax year prior to the current processing year.

  2. Refer to IRM 3.11.3.73 for prior year editing instructions.

  3. Refer to IRM 3.11.3.73.2 for the statute of limitations instructions on prior year returns.

  4. Process the return as a prior year return when the tax form is for the current year, but the Form(s) W-2 is for a prior year. Pull for work leader unless trained.

  5. The work leader will:

    • Convert to a prior year Form 1040.

    • Refer to the line-by-line instructions for prior year editing in IRM 3.11.3.73 for more information.

Early Filed Return

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

    • Edit the caption.

    • Edit tax period in YYMM format.

    • Edit the Received Date when one is not present.

    • Edit Action Code "480" .

Received Dates

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

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

    • General instructions

    • Timely received dates

    • Determining the received date

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

    • Late-filed returns

    • Extensions

    • Reasonable cause criteria

Received Dates, General Instructions

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

    • Amended

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

    • Fiscal year, prior year, or short year

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

    • Processed on June 3, 2024, or later, or the Julian date in the DLN is 155 or later

      Exception:

      Full Paid returns never require a received date.

      Note:

      If return is being processed between ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ without a received date see IRM 3.11.3.8.2. Do not edit a received date if return is determined to be timely.

    Exception:

    See Late Filed Returns, IRM 3.11.3.8.5(3) for further information.

  2. Edit the received date on the front of the return in the empty space to the right of "Dependents (see instructions)"

    Note:

    For prior year returns refer to Job Aid 2431-010 for editing location.

  3. Edit the received date in "MMDDYY" format when it is required and not already present. MMDDYY format is Month Month Day Day Year Year. For example, April 23, 2024, when edited in MMDDYY format is "042324" .

  4. Perfect the received date when it is required and not legible or is incomplete. When perfecting, edit in the MMDDYY format.

  5. If a received date is present in or above the caption area, delete and edit the same received date as instructed in (2) above. If page 1 of the return does not have a received date, search the return and attachments for a received date and edit that date as instructed above.

  6. Circle the received date when it is present on a return that does not need one. (See Figure 3.11.3-11.)

  7. Circle a received date that has been X-ed or deleted in another manner.

  8. Circle all but the earliest valid received dates (including Statute or other valid IRS organization's received dates) when there are multiple received dates present and a received date is required. (See IRM 3.11.3.8.2.1(2).) Taxpayer Advocate Service (TAS) received dates are not valid received dates. If multiple received dates are identical and in the correct location on the return, circle all but one received date.

    Exception:

    When the return has been mailed back for missing signature(s) and multiple received dates are present, see IRM 3.11.3.8.2(3).

  9. If a return has been faxed to another area of the service and then sent to Code & Edit for processing, do not edit the Enterprise Electronic Fax (EEFax) date as the IRS Received Date. Edit the received date following normal procedures.

    Caution:

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

    Figure 3.11.3-11

    This is an Image: 33440011.gif

    Please click here for the text description of the image.

Determining the Received Dates

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

    1. Latest postmark on the envelope, the postmark date stamped or handwritten on the return or latest date from a private delivery service mark. (See Figure 3.11.3-12)

      Note:

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

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

    3. Latest date by the taxpayer's signature(s). (See Figure 3.11.3-12)

      Exception:

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

    4. Julian date minus 10 days in the DLN.

    5. Today's date minus 10 days.

    Exception:

    See the instructions in IRM 3.11.3.6.2.16 when determining the received date for a reinput return.

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

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

    1. If the return is Balance Due and a received date is present showing a date within 30 days after the date present in the lower left corner, use the date sent back for signature as the received date. Use the most recent mail-back date when multiple dates are present. Circle out any other received date(s) that may be present. (See Figure 3.11.3-13.)

      Note:

      If the return for signature date is missing and it can be determined that the response was received within 30 days, edit the earliest received date when more than one is present. If only one received date is present, delete that date and edit 041524.

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

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

      Exception:

      For Statute Returns only: if a received date is present showing a date within 30 days after the return for signature date, circle out the latest received date and edit the earlier received date.

      Reminder:

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

    Figure 3.11.3-12

    This is an Image: 33440012.gif

    Please click here for the text description of the image.

    Figure 3.11.3-13

    This is an Image: 33440013.gif

    Please click here for the text description of the image.

Types of Received Dates
  1. Accept these three types of received dates:

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

      Note:

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

    • IRS area/territory office date stamp with the word received.

      Note:

      The city and functional area within the site (CSCO, Exam, ICT, CII, AM, for instance) should appear in the date stamp.

    • Valid handwritten or typed received date

      Note:

      A handwritten or typed received date edited in the empty space to the right of Dependents (see instructions) on TY18 and later returns or on TY17 and prior returns in the line 6d area of Form 1040 or Form 1040A (line 6 of Form 1040EZ) by an IRS employee in Submission Processing or RIVO is valid. A clear indication that a handwritten or typed received date has been edited by RIVO will be the presence of SPC "B" , "M" and/or "RIVO" noted or stamped in the upper left margin. Generally, the RIVO-edited received date will be earlier than the original, stamped received date.

  2. Accept a received date on an IRS Received Date Label (Form 14471) above the caption.

    Note:

    Delete and edit the same received date as instructed in IRM 3.11.3.8.1.

  3. When there is no valid date stamp and the handwritten or typed received date is not valid, determine the received date using the instructions in IRM 3.11.3.8.2.

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

  2. Valid Post Office marks are:

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

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

    • USPS Metered postmarks

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

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

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

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

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

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

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

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

      Note:

      Do not use "FedEx Powership 3" labels for determining the mail date. (See Figure 3.11.3-14.)

    3. DHL Express
      DHL Express
      DHL Express Worldwide
      DHL Express Envelope
      DHL Import Express
      DHL Import Express Worldwide

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

    Figure 3.11.3-14

    This is an Image: 33440014.gif

    Please click here for the text description of the image.

Timely Filed Returns

  1. For 2024, a current-year return is a return filed for tax year 2023. A current calendar-year return (2312) is timely filed when it is mailed on or before the due date of April 15, 2024.

    Note:

    Residents of Maine and Massachusetts will timely file a return if it’s mailed (or postmarked) by April 17, 2024. Patriots day holiday is April 15, 2024 for Maine and Massachusetts and the DC Emancipation Day holiday is April 16, 2024.

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

  3. Generally, a current calendar-year (2312) return received on or before April 15, 2024, does not require a received date.

  4. For current calendar-year (2312) other than full-paid return, received on or before April 15, 2024:

    If the document is Then
    Unnumbered and being processed before June 3, 2024, Circle the received date when present.

    Exception:

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

    Numbered with a DLN Julian date of 154 or earlier, Circle the received date when present.

    Exception:

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

    Unnumbered and being processed on June 3, 2024, or later, Edit "041524" as the received date if one is not present.
    Numbered with a DLN Julian date of 155 or later, Edit "041524" as the received date if one is not present.

"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"

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

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

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

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

  5. For current calendar-year (2312), other than full paid return, received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡:

    If the received date is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Then
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Circle the received date.

    Exception:

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

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Circle the received date.

    Exception:

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

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Circle the received date. Edit a received date of "041524" .

    Exception:

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

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Circle the received date. Edit a received date of "041524" .

    Exception:

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

    Exception:

    If penalties or interest are indicated by Examination or Collection and the return is part- or full-paid, then edit a received date of "041524" and prepare Form 3471. See IRM 3.11.3.3.4.1 for more information and instructions. Use the instructions in IRM 3.11.3.14.3.5 when penalty and interest amounts are entered by the taxpayer.

Late Filed Returns

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

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

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

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

  3. When the received date on a current calendar-year (2312) return ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" or later), examine the envelope or the postmark date stamped or handwritten on the return and:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    "≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    "≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

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

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

    Note:

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

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

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

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

    Note:

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

    Exception:

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

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

Extensions

  1. Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, may be filed to extend the due date for filing an individual tax return until October 15, 2024.

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

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

    If the Form 4868 is Then
    Not for the Form 1040 to which it is attached (e.g., another tax period, another taxpayer), Detach the form and route it to Receipt and Control.
    For the Form 1040 to which it is attached, Leave the form attached to the return.

  4. Edit CCC "R" on returns received after April 15th when Form 4868 or Form 6401 is attached and an ITIN or IRSN is present in the primary Social Security Number (SSN) field. Both Individual Tax Identification Numbers (ITINs) and Internal Revenue Service Numbers (IRSNs) begin with the digit "9" .

    Note:

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

  5. Examine the envelope postmark date. If the received date is "≡ ≡ ≡ ≡" or later, and the postmark date or designated PDS mark date is on or before October 15, 2024, edit the postmark date as the received date.

    Exception:

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

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

    Note:

    Use the instructions in IRM 3.11.3.3.4.1 to prepare Form 3471 when returns are received from Examination or Collection with penalty and interest amounts entered. These amounts will usually be present on Form 4364, Delinquency Computations. Use the instructions in IRM 3.11.3.14.3.5 when penalty and interest amounts are entered by the taxpayer.

Reasonable Cause

  1. Taxpayers are liable for delinquency penalties and interest on the unpaid taxes on returns received after the due date. However, penalties for late filing, or late payment, may be excused when the taxpayer has a reasonable cause for the delay. See Exhibit 3.11.3-9 for examples of reasonable cause.

    Note:

    Reasonable cause does not excuse penalties for failure to make estimated (ES) tax payments properly unless the taxpayer retired after reaching age 62 or became disabled during the tax year or the prior tax year. (See Exhibit 3.11.3-9.)

  2. Failure to make estimated (ES) tax payments generally cannot be waived due to reasonable cause. See IRM 3.11.3.14.3.5 for waivers of the estimated tax penalty.

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

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

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

    • An APO/FPO/DPO address

    Note:

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

    Note:

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

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

    1. Edit CCC "7" .

    2. Route for correspondence. Letter 854C (Penalty Waiver or Abatement Disallowed/Appeals Procedure Explained), must be issued.

    Note:

    See the correspondence instructions in IRM 3.11.3.5.

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

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

Taxpayer Identification

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

    • General caption information

    • Caption editing

    • Taxpayer identification number

    • Name and additional information lines

    • Mailing address

Caption, General Information

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

  2. Caption information can be printed, typed, or handwritten directly on the return. (See Figure 3.11.3-15.)

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

    Note:

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

    Note:

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

  4. Required caption information includes:

    • Primary taxpayer identification number (P-TIN)

    • Secondary taxpayer identification number (S-TIN)

    • Name

    • Additional information line, when required

    • Mailing address

    • City and State

    • ZIP Code

    Figure 3.11.3-15

    This is an Image: 33440015.gif

    Please click here for the text description of the image.

Caption Editing

  1. Ensure the S-TIN and name is present in the caption on Married Filing Jointly (MFJ) FS 2 returns. Also ensure that Married Filing Separately (MFS) FS 3 and FS 6 returns have the S-TIN included in the caption. For definition of Filing Status Codes (FS 2, FS 3, etc.) see IRM 3.11.3.12.1(2).

    Note:

    Edit the S-TIN from attachments when missing.

    Exception:

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

  2. Edit to the caption area any change or addition to caption information made by the taxpayer on an attachment or on the return outside of the caption area. (See Figure 3.11.3-16.)

    Exception:

    See IRM 3.11.3.9.2.3 for instructions for perfecting a mailing address.

    Figure 3.11.3-16

    This is an Image: 33440016.gif

    Please click here for the text description of the image.

  3. Search the return and attachments for any missing caption information and perfect the caption if all missing information is found. See IRM 3.11.3.9.2.3 for instructions on perfecting a mailing address.

  4. Take the following actions if any required caption information is missing and cannot be perfected, (see Figure 3.11.3-17):

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

      Exception:

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

      Exception:

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

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

    Figure 3.11.3-17

    This is an Image: 33440017.gif

    Please click here for the text description of the image.

  5. Do not re-edit green edit markings in the caption area unless the editing is incorrect.

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

    1. Name control for caption.

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

      Note:

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

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

    1. Present on a return.

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

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

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

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

  3. There are different types of valid TINs:

    • Individual Taxpayer Identification Number (ITIN): Format always begins with the digit "9" and follows the same format as a typical SSN. The valid ranges for the fourth and fifth digits are:
      - 50 through 65
      - 70 through 88
      - 90 through 92
      - 94 through 99
      - Example of an ITIN: 9XX-71-XXXX.

    • Adoption Taxpayer Identification Number (ATIN): Format always begins with the digit "9" and follows the same format as a typical SSN. The fourth and fifth digits will be 93. Example of an ATIN: 9XX-93-XXXX.

    • Internal Revenue Service Number (IRSN): Format always begin with the digit "9" and follows the same format as a typical SSN. The fourth and fifth digits signify the Internal Revenue Service Campus (IRSC) Code where the IRSN was originally assigned or the new expansion range assigned to that campus. Shown below are the numbers allocated to IMF campuses:

    IRSC 4th and 5th Digit Ranges for IRSNs Expansion Ranges
    Austin 18 06
    Kansas City 09 39
    Ogden 29 04

    Note:

    Example of an IRSN assigned from Austin: 9XX-18-XXXX.

  4. Circle any invalid (e.g., "999-99-9999" , "111-11-1111" ) or incomplete TIN that cannot be perfected, including all notations, (e.g., "NRA" , "SSA 205(c)" , "applied for" , "ITIN Rejected" , "No W-7" ).

    Reminder:

    It is not necessary to circle the invalid TIN for dependents when the name has been "X" ’d. If an ITIN or IRSN is newly assigned (edited in red), any other TIN for the same person is invalid and will be circled. Circling is only necessary if the TIN field is a T-Line.

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

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

    1. Unnumbered:
      • Pull the return from the batch. Attach Form W-7 to the front of the return.

      Exception:

      Do not pull if the Form W-7 has a large red "X" editing across the form. Instead, continue processing the return.


      • Edit the received date on Form W-7/W-7(SP) in "MMDDYY" format and route the entire return to Receipt and Control for transshipment to AUSPC.

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

      Exception:

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

      Note:

      For numbered returns, edit Action Code "651" .

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

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

    Exception:

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

    Note:

    If the P-TIN is an edited ITIN on a photocopied return, underline the ITIN.

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

  4. If the P-TIN is missing, illegible or incomplete, examine the return and its attachments and edit the P-TIN, if found. Circle an incomplete P-TIN.

    Note:

    If there is an indication the taxpayer used a TIN that is not their own, take no action, (e.g., the taxpayer shows an ITIN on the return and an SSN on attached Form W-2).

  5. Correspond for a missing P-TIN when corresponding for other missing return items. If using Form 3531, check box 3, or Form 6001, check box B.

    Exception:

    Do not correspond if the taxpayer indicates "Amish" , "Mennonite" , "none" , "SSN Applied For" , "NRA" , "SSA 205(c)" , or all nines or zeroes.

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

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

    Exception:

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

  3. Edit the S-TIN from the return or attachments if it is missing, illegible, or incomplete, and the FS is "2" or "3" . For TY17 and prior returns, edit the S-TIN in the correct block if it is blank and the taxpayer entered a TIN on the line to the right of FS box 3.

    Note:

    If there is an indication the taxpayer used a TIN that is not their own, take no action, (e.g., the taxpayer shows an ITIN on the return and an SSN on attached Form W-2).

  4. Correspond for a missing S-TIN when corresponding for other missing return items, unless there is an indication of Amish or Mennonite, ITIN Rejected or Non-resident Alien (NRA). If using Form 3531, check box 3, or Form 6001, check box B.

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

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

  2. There are two lines available for taxpayer identification.

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

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

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

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

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

    • Only one name appears in the first name line.

    • The FS is "2" .

    • Both taxpayers have signed the return.

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

    If the return indicates that Then
    At least one of the taxpayers is deceased, Refer to IRM 3.11.3.10 for complete editing instructions for decedent returns.
    The taxpayer is a minor child, Refer to IRM 3.11.3.11.2.

  5. Circle the brackets and prior last name when a taxpayer places it in brackets and shows a new last name. (See Figure 3.11.3-18.)

    Figure 3.11.3-18

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

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

  8. Edit the name line as follows:

    If the taxpayer Then
    Uses a first initial but signs the return with a name,* Edit the name from the signature line to the name line. (See Figure 3.11.3-19.)
    Uses a middle initial and no first name,* Edit the name for the middle initial, if present. (See Figure 3.11.3-19.)
    Writes their last name first, Edit it to appear last. (See Figure 3.11.3-20.)
    Enters their last name twice and the FS is other than "2" , Circle either name and edit the last name to appear last, if necessary.

    Note:

    *Do not verify the name line with the signature area unless one of these two conditions apply.

    Figure 3.11.3-19

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    Figure 3.11.3-20

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Additional Information Line (AIL)
  1. The additional information line may be found anywhere in the caption area.

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

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

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

  3. Underline the AIL (see Figure 3.11.3-21), when present in the caption area, in the following priority:

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

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

    3. Name of a Power of Attorney (POA) (See Figure 3.11.3-22.)

    4. Name of a person not meeting the criteria listed in a, b, or c above (e.g., "in-care-of" information.) Also underline in care of (c/o or %) with a name as part of the AIL.

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

      Note:

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

    6. Location other than a street address (e.g., bank, company name, university, or building name) not used as the mailing address. (See Figure 3.11.3-23.)

      Note:

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

    Note:

    When editing Prisoner returns with a Prisoner ID number present on return or attachments, edit the Prisoner ID number as the AIL. When both the Prisoner ID number and another AIL are present, underline the Prisoner ID number and delete any other AIL information. Do not underline the pound sign or other symbols preceding the number.

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

    Figure 3.11.3-21

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    Figure 3.11.3-22

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    Figure 3.11.3-23

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

  2. Underline or edit the name control when there is no street address (for example, 4116 Apple Ave) or P.O. Box present in the caption. (See Figure 3.11.3-17 and Figure 3.11.3-24.)

    Exception:

    If Form 8822 is attached, follow the instructions at IRM 3.11.3.9.2.3.1. If the address still cannot be perfected, underline the name control.

    Exception:

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

  3. When a street address in the caption is incomplete (such as a number without a street name or a street name without a number), and a complete address that matches the caption is found on an attachment, perfect the street address. If the street address cannot be perfected, underline or edit the name control. (See Figure 3.11.3-24.)

  4. Search the attachments when a complete street address is present in the caption, but the city/state/ZIP is missing or incomplete. If the street address in the caption matches one found on an attachment, use the attachment to perfect the city/state/ZIP. (See Figure 3.11.3-25.)

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

    Note:

    If only the ZIP Code is missing, refer to IRM 3.11.3.9.2.6.

    Exception:

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

  6. Refer to the international return instructions in IRM 3.11.3.6.2.13 when the return has a foreign address in the caption area or on TY18 Schedule 6.

    Exception:

    If both a domestic and foreign address are present, circle out the foreign address.

    Figure 3.11.3-24

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    Figure 3.11.3-25

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Change of Address (Form 8822)
  1. Edit the taxpayer's new address from Form 8822, Change of Address, if it is attached to the return. (See Figure 3.11.3-26.)

  2. If Form 8822 is attached to the return:

    If Then
    Box 1 is marked or no box is marked, Leave Form 8822 attached to the return.
    Box 2 is marked,
    1. Detach Form 8822.

    2. Route Form 8822 to Entity Control using Form 4227.

    3. Edit Action Trails on both the return and on Form 8822.

      Note:

      If Form 56 is attached, detach and route with Form 8822.

  3. Route loose Forms 8822 to Entity Control. Refer to the Attachment Guide in Exhibit 3.11.3-1 for more information.

    Figure 3.11.3-26

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Multiple Addresses
  1. Use the permanent address when more than one address is indicated, and one is permanent and one is temporary. (See Figure 3.11.3-27.)

    Exception:

    When the taxpayer self-identifies as a victim of a natural disaster and requests that a refund be sent to a temporary address, edit Action Code "341" .

    Figure 3.11.3-27

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    Note:

    Refer temporary foreign addresses to your work leader for possible manual refund.

  2. Use the following chart to decide what action to take when multiple addresses are present and there is no indication of which address is permanent.

    If there are And Then
    Both a PO box and a street address present, An AIL is present, Circle the street address. (See Figure 3.11.3-28.)
    Both a PO box and a street address present and the city/state/ZIP codes are the same, An AIL is not present, Underline the street address. (See Figure 3.11.3-29.)
    Both a PO box and a street address present and the city/state/ZIP code are different, An AIL is not present, Circle the street address, including the city/state/ZIP code.
    Two street addresses and the city/state/ZIP Code are the same, An AIL is not present, Underline the first street address.
    Two street addresses and the city/state/ZIP Code are different, An AIL may or may not be present, Circle the first street address, including the city/state/ZIP Code.

    Figure 3.11.3-28

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    Figure 3.11.3-29

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  3. For addresses having a rural route or route number with a box number, and a street address: (See Figure 3.11.3-30.)

    If a street number is Then
    Present, Underline the rural route or route number with a box number.

    Note:

    Never separate a rural route or route number with a box number.

    Not present, Underline the street address.

    Exception:

    Do not underline any part of the address when an AIL is already present.

    Figure 3.11.3-30

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  4. Underline any other address as the AIL if the street address is present with a notation of Private Mail Box or "PMB" . Do not separate the address from the PMB number. (See Figure 3.11.3-31.)

    Exception:

    Do not underline a P.O. Box as the AIL. The P.O. Box will always take precedence over the PMB when determining the correct address.

    Figure 3.11.3-31

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City
  1. The city must be present. If missing, search the return and other attachments.

    If the missing information is Then
    Found, Perfect the city line.

    Exception:

    Do not perfect city information if the street address is not present on the return.

    Not found, Underline or edit the name control.

  2. Do not abbreviate city names except those which have standard abbreviations. Examples include No. Hollywood or St. Louis. A list of the standard city abbreviations will be made available at local management's option.

  3. Route to Receipt & Control for transshipment to AUSPC when international return conditions are present. (See IRM 3.11.3.6.2.13.)

    Exception:

    AUSPC only: Route to Receipt & Control for rebatching.

State
  1. The state must be present. If missing, search the return and other attachments.

    If the missing information is Then
    Found Perfect the state.

    Exception:

    Do not perfect state information if the street address is not present on the return.

    Not found, Underline or edit the name control.

  2. Use the standard abbreviations when editing the state. Refer to Exhibit 3.11.3-10 for a list of the standard state abbreviations.

  3. Route to Receipt & Control for transshipment to AUSPC when international return conditions are present. (See IRM 3.11.3.6.2.13.)

    Exception:

    AUSPC only: Route to Receipt & Control for rebatching.

ZIP Code
  1. The ZIP code may be five or more digits. Take no action when there are more than five digits.

  2. Search return or attachments if the ZIP code is missing or incomplete, take one of the following actions:

    1. Perfect the ZIP code if a complete ZIP code is found for exactly the same address (including apartment number, if present). (See Figure 3.11.3-32.)

    2. Perfect the ZIP code using the chart in Exhibit 3.11.3-10 when a complete ZIP code is not found.

    Figure 3.11.3-32

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APO/FPO/DPO Addresses
  1. Edit an APO, FPO, or DPO address so that "APO" , "FPO" , or "DPO" appears with the following (see Figure 3.11.3-33):

    • The correct two-letter state code, and

    • The corresponding unique five-digit ZIP code

    Figure 3.11.3-33

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  2. Circle a city name or a foreign city or country if present, and edit the correct state/ZIP code based on the table in paragraph (4) below.

  3. Edit the ZIP code from the table in paragraph (4) below that applies to the state code when the ZIP code is missing or incomplete.

  4. Refer to the following APO/FPO address conversion tables:

    Old Address New Address
    APO or FPO Miami, FL APO or FPO AA 34001
    APO or FPO New York, NY APO or FPO AE 09001
    APO or FPO San Francisco, CA APO or FPO AP 96201
    APO or FPO Seattle, WA APO or FPO AP 96201
    If the Foreign City or Country is Located in: State Code and ZIP
    Central America, South America or Caribbean AA 34001
    Europe, Middle East, Africa or Canada AE 09001
    Asia or the Pacific AP 96201

Decedent Return

  1. Indications of a deceased taxpayer may include any of the following:

    1. Date of death is present

    2. "Deceased" written on the top of the return

    3. "Deceased" , "Filing as surviving spouse" , or similar notation in the signature area

    4. Death certificate, Form 1310, or other documentation is attached

    5. "Estate of" is present

    6. "DEC"

    7. Signed by Fiduciary, Personal Representative or, Executor

  2. Instructions in this subsection of the IRM include the following:

    • General Decedent Return instructions

    • Decedent name line editing

    • Documentation requirements

    • Additional information line editing

    • Applicable Computer Condition Codes

    • Allowable short-period decedent return editing

Decedent Return, General Instructions

  1. Edit the caption information from a Form 1310 if documentary evidence is satisfied or not required. If Form 1310 is not present, edit the information from the court certificate.

    Note:

    If the Form 1310 is the required documentary evidence, it must be complete and signed. (See Figure 3.11.3-34.)

    Figure 3.11.3-34

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  2. When corresponding for signature and/or documentary evidence when no living taxpayers are present on the return:

    • When using Form 3531, edit "Estate of" to the left of the name in the caption area.

    • When using Form 6001, check the "Estate of" box.

  3. Do not edit the AIL when corresponding for documentary evidence. If an AIL is present, circle out the AIL before corresponding for the documentary evidence.

  4. If corresponding for information other than documentary evidence, edit the AIL. If an AIL cannot be determined, check the "Estate of" box on Form 6001.

  5. If the signature is missing on a decedent return, correspond using Form 3531, check box 1 and 27. Missing documentary evidence is not treated as an unsigned return. Do not use Form 3531 to mail back a signed decedent return missing documentary evidence.

  6. Decedent returns require a date of death. Correspond when the date of death cannot be determined through research. For Form 3531, check box 24, or Form 6001, check box C.

    Note:

    Do not research for a date of death when other correspondence conditions are present, instead include in the correspondence.

  7. If a single taxpayer, or both taxpayers on a joint return, died before the tax period on the return, refer the return to your work leader.

    Note:

    These procedures also apply with a notation of "Estate of" or "Trust" in the caption when an SSN is present.

  8. Work Leaders - follow the instructions below:

    1. Verify conversion to Form 1041 is necessary.

    2. Verify taxpayer is deceased. If a surviving spouse's signature is present on the return or if the taxpayer signed the return, do not transship to BMF SPC.

      Note:

      Correspond on returns with no signature prior to transshipping or routing.

    3. For a numbered return, insert a replacement page and edit the following information:
      • DLN in the upper-right margin.
      • Action Code "640" .
      • Action Trail, "Return transshipped to BMF SPC for conversion to Form 1041" .

    4. Pull the return from the batch and route to Receipt and Control, Media Transport Unit for transshipment to a BMF SPC.

    Exception:

    KCSPC and OSPC, do not transship the return. Route the return, using Form 4227 or local procedures, to your site’s BMF unit to renumber and process the return.

  9. Take the following actions when a request for a prompt assessment or audit (e.g., "Section 6501(d)" noted) is present:

    1. Detach the request.

    2. Route the request to Examination using Form 4227.

    Note:

    Remember to edit Action Trails on the return and the request.

  10. If the FS is "1" , "4" , or "5" , the taxpayer is filing as a surviving spouse, and the decedent’s date of death is within the tax period or the subsequent tax period, take the following actions:

    If there is And Then
    One name in the name line, FS box 1 (Single) or 4 (Head of household) is marked,
    1. Edit the FS as 2 (Married filing jointly) and the spouse's name to the caption.

    2. Correspond, if the spouse's name cannot be found.
      - If using Form 3531, check box 26.
      - If using Form 6001, use fill-in 25, per Exhibit 3.11.3-18.

    One name in the name line, FS box 5 (Qualifying Surviving Spouse is marked, Correspond, if the spouse's name cannot be found.
    - If using Form 3531, check box 26.
    - If using Form 6001, use fill-in 25, per Exhibit 3.11.3-18.
    Two names in the name line,   Edit the FS as "2" (Married filing jointly). (See Figure 3.11.3-35.)

    Figure 3.11.3-35

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  11. If the signature of the deceased taxpayer is present on the signature line of the return, the signature date must precede the date of death of the taxpayer. If it does not, correspond for a valid signature using Form 3531. Correspond for documentary evidence, if necessary.

Name Line on a Decedent Return

  1. Use these name line instructions in addition to the regular caption editing procedures in IRM 3.11.3.9.2.

  2. If there is a notation of "deceased" , "decedent" , "Decd" , "Dec" , or "Dec'd" in or above the caption area, arrow or edit the notation to indicate the deceased taxpayer. (See Figure 3.11.3-36.)

    If And Then
    Other than joint return,   Arrow or edit the notation to after the taxpayer's last name (behind any suffix)*
    Joint Return, Both taxpayers have same last name, Arrow or edit the notation to after the deceased taxpayer's first name (and middle initial, if present). (See Figure 3.11.3-36.)

    Note:

    No special editing is needed if a suffix is present.

    Joint Return, Taxpayers have different last names, Arrow or edit the notation to after the deceased taxpayer's last name (behind any suffix.)*

    Note:

    * If the deceased taxpayer's last name is hyphenated, edit DECD after the second surname.

    Figure 3.11.3-36

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  3. If there is not a notation of "deceased" , "decedent" , "dec" , "Decd" , or "Dec'd" in or above the caption area, edit "DECD" as follows:

    If And Then
    Other than joint return,   Edit "DECD" after the taxpayer's last name (behind any suffix) ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡
    Joint Return, Both taxpayers have same last name, Edit "DECD" after the deceased taxpayer's first name (and middle initial, if present).
    Joint Return, Taxpayers have different last names, Edit "DECD" after the deceased taxpayer's last name (behind any suffix.) (See Figure 3.11.3-38.)*

    Note:

    * If the deceased taxpayer's last name is hyphenated, edit DECD after the second surname.

  4. On a joint return, when one taxpayer died prior to the tax period of the return, delete the following from the caption:

    1. The deceased taxpayer's name and TIN

    2. "DECD" if it is included in the caption

  5. If deleting the primary taxpayer from the caption, edit the secondary taxpayer as the new primary. (See Figure 3.11.3-39.) See IRM 3.11.3.12.2.2 (1) for possible filing status editing.

    Figure 3.11.3-37

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    Figure 3.11.3-38

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    Figure 3.11.3-39

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Documentary Evidence on a Decedent Return

  1. Accept any court papers naming the claimant as a court-appointed or court-certified personal representative for the estate of the deceased taxpayer. A will validated through the court is acceptable documentary evidence. Acceptable documentary evidence also includes a properly completed Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. (See IRM 3.11.3.10.3(7).)

    Note:

    The signature name and the documentary evidence name must be the same person. Otherwise, correspond.

    Note:

    A beneficiary is not a court appointed representative.

    Reminder:

    A will that has not been validated through a court is not acceptable as proof of appointment. A power of attorney (POA) is not valid after the death of the taxpayer.

  2. Do not require documentary evidence for the authority to sign the return on a:

    1. Balance due return

    2. Zero/even balance return

    3. Joint (FS "2" ) return signed by the surviving spouse

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

    5. Credit elect return when the taxpayer's date of death is after the tax year (on a joint return this applies to either taxpayer).

    6. Return signed by a representative of a bank or fiduciary institution.

  3. Unless one of the exceptions in (2) above applies, require documentary evidence for all decedent returns that meet any of the following conditions:

    1. Uncomputed return

    2. Refund of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. Credit elect of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡

    Exception:

    If the refund is barred due to the expiration of the statute of limitations, no documentary evidence is required. See IRM 3.11.3.73.3.1 for further information.

    Figure 3.11.3-40

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  4. Require documentary evidence on a joint return only in the following two situations, unless one of the conditions in (2) above applies:

    If Then
    Both taxpayers are deceased, Require documentary evidence for the person signing the return for both of the deceased taxpayers, (i.e., a separate Form 1310 for each spouse).
    See IRM 3.11.3.10.3(2) for exceptions.

    Note:

    The signature name and the documentary evidence name must be the same person. Otherwise, correspond.

    Only one taxpayer died and the return has a single signature of someone other than the surviving spouse, Documentary evidence is required to support the authority to sign for both the decedent and the surviving spouse, (i.e., fiduciary relationship or POA per IRM 3.11.3.11 and IRM 3.11.3.11.3). When corresponding with Form 6001 use paragraph g/r.

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

    Figure 3.11.3-41

    This is an Image: redimage.gif

  6. Correspond when the refund payee is a claimant other than a legal representative, and a completed Form 1310 is not present. Correspond using Form 6001, paragraph D, or Form 3531, box 28.

  7. Accept Form 1310 as documentary evidence when all the following are present:

    1. An original signature. Correspond if missing or invalid. See IRM 3.11.3.14.5 for signature requirements.

    2. Part II, questions 2a and 2b must be answered "No" . Correspond for a court certificate if either is answered "Yes" or is blank. (See Figure 3.11.3-42.)

    3. Part II, question 3 must be answered "Yes" unless a court certificate is attached. (See Figure 3.11.3-43.) Correspond when the question is answered "No" or is blank and a court certificate is not attached.

    Note:

    Correspond for a court certificate even when there is an indication a court certification was previously submitted.

    Figure 3.11.3-42

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    Figure 3.11.3-43

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Additional Information Line on a Decedent Return

  1. An AIL is required on all refund and uncomputed returns. On all other returns, edit the AIL if available. (See Figure 3.11.3-44.) Correspond when an AIL is required and you are not able to determine the AIL from the signature line or attachments. For Form 3531, use box 25 and for Form 6001, fill in 3, per IRM Exhibit 3.11.3-18.

    Note:

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

  2. Edit the name of the surviving spouse as the AIL on a FS 2 return. Include the representative's name and title on the AIL when a court-appointed or personal representative's signature is on the return.

    Exception:

    Do not include a title on the AIL when the surviving spouse is also the court-appointed personal representative.

  3. Edit the title of the representative from these sources in the following priority:

    1. Court certificate

    2. Form 1310

    3. Signature area of the return

    Note:

    Edit only the first representative's name and title on the AIL when more than one is present.

  4. Use the following abbreviations for these titles (See Figure 3.11.3-44):

    • Administrator - ADM

    • Commissioner - COMM

    • Conservator - CONS

    • Custodian - CUST

    • Executor (Executrix) - EXEC

    • Guardian - GDN

    • Personal Representative - PER REP

    • Trustee - TR

    Note:

    Edit only the first representative's name and title on the AIL when more than one is present.

  5. Delete personal relationship suffixes (e.g., "surviving spouse" , "mother" , "father" , "daughter" , "son" , etc.) from the AIL.

    Figure 3.11.3-44

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Computer Condition Codes for Decedent Returns

  1. Edit one of the following CCCs on a refund or uncomputed return:

    1. Edit CCC "W" if the payee is the surviving spouse alone, or a payee other than a legal representative or place of business. (See Figure 3.11.3-45.)

    2. Edit CCC "L" if the payee is a legal representative (i.e., court-appointed), place of business, or a surviving spouse and a legal representative or place of business. (See Figure 3.11.3-45.)

      Note:

      Do not edit CCC "L" or CCC "W" if corresponding for documentary evidence.

  2. Edit one of the following CCCs on all returns where the taxpayer(s) died during the tax period of the return:

    1. Edit CCC "F" if a single taxpayer, or only the primary taxpayer on a joint return, is deceased. (See Figure 3.11.3-46.)

    2. Edit CCC "9" if only the secondary taxpayer died during the tax period. (See Figure 3.11.3-46.)

    3. Edit CCC "A" if both taxpayers died during the tax period. (See Figure 3.11.3-46.)

    Note:

    Do not edit CCC "F" , "9" or "A" when the taxpayer died after the end of the tax period. (See Figure 3.11.3-45.)

    Figure 3.11.3-45

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    Figure 3.11.3-46

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Short Period Decedent Return

  1. If a single taxpayer or two taxpayers on a joint return died after the currently processed calendar year (2023), a short period return may be filed. In addition to regular editing, edit the following (see Figure 3.11.3-47):

    1. The date of death in YYMM format as the tax period.

      Note:

      Use the most recent date of death on a joint return when both taxpayers are deceased.

    2. CCC "Y" and an Action Trail

    3. CCC "A" for a joint return or CCC "F" for a single taxpayer

    4. Received date or today's date if no date stamp is present

    5. CCC "R" if the return is received more than 3 months and 15 days from the end of the short period.

      Exception:

      Do not edit CCC "R" if CCC "Z" criteria apply.

  2. If on a joint return only one taxpayer died after the currently processed calendar year, a return for the surviving spouse must be filed for the entire year. If a short period return was filed instead, take one of the following actions:

    1. If the return is unnumbered, correspond, informing the taxpayer that a return for the entire year must be filed.

    2. If the return is numbered, edit Action Code "480" and do not correspond.

    Figure 3.11.3-47

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Fiduciary Relationships

  1. Fiduciary returns are those which are signed for the taxpayer by a representative, who is often court-appointed.

  2. Edit the fiduciary institution's name or the taxpayer's representative's name, when no institution name is present, as the Additional Information Line (AIL) in the caption. (See IRM 3.11.3.9.2.2.2.)

  3. Use the abbreviations in the following chart as suffixes to the representative's name or fiduciary’s relationship.

    Fiduciary Relationships/Taxpayer Representatives Abbreviation
    Administrator ADM
    Commissioner COMM
    Conservator CONS
    Custodian CUST
    Executor/Executrix EXEC
    Guardian GDN
    Personal Representative PER REP
    Trustee TR

    Note:

    Do not add a Power of Attorney (POA) name as an Additional Information Line.

  4. Delete the word "Incompetent" from the caption when it is present.

Documentary Evidence Requirements

  1. Documentary evidence is never required for any of the following relationships:

    • The parent or spouse of an incompetent taxpayer

    • A parent signing for their minor child

    • An attorney or Certified Public Accountant (CPA)

    • A representative of a bank or other fiduciary institution, to include credit unions, pension funds, etc.

    • A Military spouse out of the country on combat duty or located in a qualified hazardous duty area. See IRM 3.11.3.6.1.1 for more information regarding Combat Zone returns.

    Note:

    See IRM 3.11.3.10.3 for Documentary Evidence requirements for decedent returns.

  2. Documentary evidence is required only if the taxpayer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. The parent for a child that is not a minor.

    2. Any of the representatives listed in the table at IRM 3.11.3.11.

  3. Documentary evidence is always required, regardless of the dollar amount, for all other relationships. This includes, but is not limited to, the following:

    • Son

    • Daughter

    • Uncle

    • Aunt

    • Cousin

    • Nephew

    • Niece

    • POA

    • Attorney-In-Fact

  4. Correspond when documentary evidence is required but not attached. If using Form 3531, check box 1, or Form 6001, paragraph f/r.

    Note:

    Do not edit AIL or underline, circle out if already present in the caption, when corresponding for documentary evidence.

Minor Child

  1. A minor child is defined by any of the following

    • "Minor" is notated anywhere on the return

    • Any indication the child is under age 18

  2. Edit "MINOR" as a suffix to the child's name in the caption if the return is for a minor child. (See Figure 3.11.3-48.)

  3. Edit the parent, other fiduciary representative or guardian's name as an additional information line in the caption if that person signs for the child (See Figure 3.11.3-48 and IRM 3.11.3.9.2.2.2.) Use the following priority to determine the name or relationship of the person(s) signing the return:

    1. Use information from the signature area.

    2. Use information from Form 8615.

    3. Correspond for documentary evidence if a relationship cannot be determined.

  4. Correspond for missing required documentary evidence. Documentary evidence requirements are:

    1. A minor child's return signed by their parent never requires documentary evidence.

    2. A minor child's return signed by their guardian or other fiduciary representative (as shown in IRM 3.11.3.11) requires documentary evidence ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. All other relationships always require documentary evidence.

    Figure 3.11.3-48

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Power of Attorney (POA)

  1. If a POA relationship is indicated, Form 2848, Power of Attorney and Declaration of Representative, or a general or durable Power of Attorney must be attached. Correspond when missing, unless there is a notation of either of the following:

    • "POA on file" .

    • A Centralized Authorization File (CAF) number is provided on the return or an attachment. See paragraph (2) below.

    Note:

    A Form 2848 authorizes the holder to represent the taxpayer before the Service. The power to sign a tax return is not a power generally authorized by the form; the power must be specified. A Form 8821, Tax Information Authorization, only allows the holder to receive the taxpayer's tax information.

  2. Research the POA when either of the notations in (1) above are present. Correspond, when research does not provide a valid (current) POA. If using Form 3531, check box 1, or Form 6001, paragraph f/r.

  3. Never edit a POA name as an additional information line in the caption, unless otherwise instructed.

  4. See IRM 3.11.3.9.2.2.2 for further information on editing additional information lines.

Filing Status (FS)

  1. The filing status (FS) is used to determine the taxpayer's standard deduction amount, eligibility for the earned income tax credit, and to compute their tax.

  2. The instructions in this manual subsection are for determining and editing the correct FS.

Filing Status, General Instructions

  1. Edit the FS by either checking the correct box or by editing the FS Code in the white space under the Filing status heading.

  2. TY17 and prior, Form 1040 and Form 1040A, edit the FS by either checking the correct box or by editing the FS Code to the left of the Filing Status 3 box.

  3. The meaning of the Filing Status Codes are:

    • FS "1" - single taxpayer

    • FS "2" - married taxpayers filing joint return

    • FS "3" - married taxpayer filing a separate return (spouse dependent / exemption is not claimed)

    • FS "4" - head of household

    • FS "5" - qualifying Surviving Spouse

    • FS "6" - married taxpayer filing a separate return (spouse exemption is claimed)

  4. Edit CCC "Q" when no dependents are listed on the return and one of the following conditions apply:

    • a Qualifying Non-Dependent is listed in the filing status area and FS is 4 or 5

    • Schedule EIC is attached with SSN of a Qualifying Non-Dependent

    • Form 2441 is attached with SSN of a Qualifying Non-Dependent

    • Form 8814 is attached with SSN of a Qualifying Non-Dependent

Determining the Filing Status

  1. On an uncomputed return, when all FS boxes are blank or multiple boxes are marked:

    1. Edit FS "2" (Married filing jointly), when there are two names in the caption and two signatures are present. Circle all boxes except FS "2" (Married filing jointly), when multiple boxes are marked.

    2. Take no action for all other cases.

    Note:

    See IRM 3.11.3.6.2.5 for information on identifying uncomputed returns. See IRM 3.11.3.13.1 for further information on dependent editing.

  2. On a computed return, when the taxpayer does not mark a box:

    If there And Then
    Is one name in the caption and one signature, A spouse is listed as a dependent, Edit FS "6" and
    do not code as a dependent.
    Is one name in the caption and one signature A spouse’s name is entered in the Filing Status area or an S-TIN is present in the caption area, Check FS 3 box (Married filing separate) unless FS 6 criteria (above) applies.
    Is one name in the caption and one signature Neither of the above apply, Check FS 1 box (Single).
    Are two names in the caption and two signatures,   Check FS 2 box (Married filing jointly).
    Is any other condition,   Take no action.

  3. On a computed return when more than one FS box is marked, circle all boxes but the largest number unless both FS 1 and 4 boxes are marked. (See Figure 3.11.3-49.)

    If FS boxes 1 and 4 are both marked and Then
    A dependent with a TIN or an indication of a dependent who was born during the tax period and died during the same or next consecutive tax period is claimed on the Dependent Line or edited in positions 1, 3, 4, or 5. Circle FS 1 box. (See Figure 3.11.3-49.)
    • A name or "see attached" is noted on line next to Qualifying Surviving Spouse or Schedule EIC, Schedule 2441, or Form 8814 with a qualifying child is attached,

    • AND no dependents are edited in positions 1, 3, 4, or 5.

    Circle FS 1 and edit CCC "Q" .
    None of the conditions listed above are present, Circle FS 4 box.

    Note:

    Refer to the FS "4" instructions (IRM 3.11.3.12.2.4) if a spouse is claimed on the Dependent line.

    Figure 3.11.3-49

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FS 1 (Single) Box Marked
  1. When the taxpayer marks FS 1 box only:

    If there is one name in the caption and one signature and Then
    A spouse is claimed as a Dependent, Circle FS 1 box and edit FS 6. Do not code the spouse as a Dependent and edit an X to the left of the spouse's name on the Dependent line.
    A spouse's date of death is within the tax period of the return or subsequent tax period,
    1. Circle FS 1 box and check FS 2 box.

    2. Edit the spouse's name to the caption or correspond if missing.
      - If using Form 3531, check box 26.
      - If using Form 6001, use fill-in 25, per Exhibit 3.11.3-18.

    Note: Also see the decedent return editing information in IRM 3.11.3.10.
    None of the conditions above apply, Take no action.

FS 2 (Married Filing Jointly) Box Marked
  1. When the taxpayer marks FS 2 box only:

    If there And Then
    Is only one signature and a spouse’s name is listed as a Dependent, There is no S-TIN present, Correspond for the spouse's missing signature and TIN. Use Form 3531 and check boxes 1 and 3.
    Are two signatures and a spouse is claimed on the Dependent line, There is no S-TIN present,
    1. Edit spouse's name to the caption.

    2. Edit an "X" to the left of spouse's name on the Dependent line and do not code the spouse as a Dependent.

    Are two names in the caption and the spouse's date of death is 2021 or 2022,

    Note:

    For PY returns - Spouse's date of death is within 2 years prior to the tax period of the return.

    A Dependent is present
    1. Circle FS 2 box and check FS 5 box.

    2. Circle the deceased spouse's name and TIN in the caption. (See Figure 3.11.3-50.)

    Are no conditions above that apply,   Take no action.

    Figure 3.11.3-50

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FS 3 (Married Filing Separately) Box Marked
  1. When the taxpayer marks FS 3 box only and spouse's exemption is claimed on the Dependent line:

    If there And Then
    Is only one name in the caption, The spouse has no income, Circle FS 3 box and edit FS "6"
    • Edit an X to the left of the spouse's name if entered on Dependent line

    • Edit the S-TIN from attachments if missing.

    • Do not code the spouse as a dependent when listed on the Dependent line.

    (See Figure 3.11.3-51.)
    Is only one name in the caption, The spouse has income, Correspond for the correct FS. If using Form 3531, use fill-in 40, per Exhibit 3.11.3-18. If using Form 6001, check box F.
    Are two names in the caption, two signatures,   Circle FS 3 box and check FS "2" box.
    • Edit an X to the left of the spouse's name if entered on Dependent line.

    • Do not code the spouse as a dependent when listed on the Dependent line.

    Figure 3.11.3-51

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FS 4 (Head of Household) Box Marked
  1. When the taxpayer marks FS 4 box only:

    If Then
    A spouse is claimed on Dependent line and no other dependents are listed or claimed,
    • Circle FS 4 box and edit FS 6

    • Edit an X to the left of the spouse's name if entered on Dependent and delete the spouse's name if in the caption.

    • Do not code spouse as a dependent.

    A spouse is claimed on Dependent line andother dependents are listed or claimed,
    • Edit an X to the left of the spouse's name if entered on the Dependent line.

    • Do not code the spouse as a dependent.

    • Position 1, 3, 4 or 5 does not have a dependent with a TIN or a dependent who was born during the tax period and died during the same or next consecutive tax period, and

    • No name or "see attached" noted below filing status checkboxes and

    • No Schedule EIC, Schedule 2441, or Form 8814 with a qualifying child attached,

    Circle FS 4 box and check FS 1 box. (See Figure 3.11.3-52.)
    • A name or "see attached" is notated below filing status checkboxes or Schedule EIC, Schedule 2441, or Form 8814 with qualifying child is attached and

    • No dependents are entered/edited in positions 1, 3, 4, or 5

    Edit CCC "Q" . (See Figure 3.11.3-53).
    A spouse's date of death is within the tax period of the return or the subsequent tax period,
    1. Circle FS 4 box and check FS 2 box.

    2. Edit the spouse's name to the caption or correspond if missing.
      - If using Form 3531, check box 26.
      - If using Form 6001, use fill-in 25, per Exhibit 3.11.3-18.

    Note:

    See the decedent return editing information in IRM 3.11.3.10.

    Figure 3.11.3-52

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    Figure 3.11.3-53

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FS 5 (Qualifying Surviving Spouse Box Marked
  1. Refer to the decedent editing instructions in IRM 3.11.3.10 if the spouse died during the tax period of the return.

  2. When the taxpayer marks FS 5 box only:

    If the And Then
    Spouse's date of death is not 2021 or 2022,

    Note:

    For PY returns - Spouse's date of death is not within 2 years prior to the tax period of the return.

    • There is at least one dependent coded in position 1, 3, 4, or 5 with a TIN

    • or a dependent who was born during the tax period and died during the same or next consecutive tax period

    • or a qualifying child on Schedule EIC, or a name or see attached noted in the filing status area.

    Circle FS 5 and check FS 4 box. (See Figure 3.11.3-54.)
    Spouse's date of death is not 2021 or 2022,

    Note:

    For PY returns - Spouse's date of death is not within 2 years prior to the tax period of the return.

    • A name or "see attached" is noted on line next to Qualifying Surviving Spouse or Schedule EIC, Schedule 2441, or Form 8814 with a qualifying child is attached,

    • AND no dependents are edited in positions 1, 3, 4, or 5.

    Circle FS 5 and check FS 4 box. Edit CCC "Q" .
    Spouse's date of death is not 2021 or 2022,

    Note:

    For PY returns - Spouse's date of death is not within 2 years prior to the tax period of the return.

    • There are no dependents coded in positions 1, 3, 4, or 5, with a TIN

    • nor a dependent who was born during the tax period and died during the same or next consecutive tax period,

    • nor a qualifying child on Schedule EIC, Schedule 2441, or Form 8814 or a name or see attached noted in the filing status area.

    Circle FS 5 and check FS 1 box.
    A spouse's date of death is within the tax period of the return or the subsequent tax period, One name in the name line,
    1. Correspond, if the spouse’s name can’t be found.
      - If using Form 3531, check box 26.
      - If using Form 6001, use fill-in 25, per Exhibit 3.11.3-18.

    Spouse's date of death is not present,   Take no action.

    Figure 3.11.3-54

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Dependents

  1. There are no exemptions on TY18 and later returns only dependents.

  2. There are two types of exemptions on prior year returns:

    • Personal exemptions

    • Dependency exemptions

  3. A taxpayer is allowed one personal exemption for him/herself (two on a joint return), as long as they cannot be claimed as a dependent by another taxpayer.

  4. Taxpayers are also allowed one dependency exemption for each person they can claim as a dependent.

Dependent Coding

  1. Dependents are edited on Form 1040 in the margin directly to the right of the dependents area of the return.

  2. There are six dependent positions. The six positions are used to identify different relationships between the dependent and the taxpayer.

    • Dependent position 1 - Child relationships

    • Dependent position 2 - Will always be zero (TY18 and later)

      Note:

      For TY17 and prior, Dependent position 2 will be edited as "Child who did not live with you" .

    • Dependent position 3 - Parent relationships

    • Dependent position 4 - Qualifying child relationships

    • Dependent position 5 - Other relationships

    • Dependent position 6 - Child relationships overflow

    (See Figure 3.11.3-55.)

  3. Dependents will be coded based on the relationship listed in column (3).

  4. Edit leading zeros. Edit a 0 (zero) in any prior position for which a dependent has not been coded when editing dependent positions 3 through 6. Do not edit trailing zeros. (See Figure 3.11.3-56.)

  5. Edit dependents to position 5 when the relationship of the dependent is not listed.

  6. The number of dependents edited should equal the number of dependents listed by the taxpayer on the Form 1040 or attachments. (See Figure 3.11.3-57.)

  7. If the taxpayer indicates a relationship of "Self" , "Me" , "Spouse" , "Husband" , "Wife" , or "Common law spouse" , edit an "X" to the left of the dependent name and do not code them in any position.

    Figure 3.11.3-55

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    Figure 3.11.3-56

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    Figure 3.11.3-57

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Determining Dependent Relationship
  1. The child relationship (position 1) includes notations of the following:

    • "Child" , "son" , or "daughter"

    • "Adopted child" , "adopted son" , or "adopted daughter"

    • "Grandchild" , "grandson" , or "granddaughter"

    • "Great-grandchild" , "great-great-grandchild" , "great-grandson" , "great-great-grandson" , "great-granddaughter" , "great-great-granddaughter"

    • "Stepchild" , "stepson" , or "stepdaughter"

  2. Child who did not live with you due to divorce or separation, position 2 is not applicable for TY18 and later and will always be edited as 0 when it is necessary to edit subsequent dependent positions. For TY17 and prior, when an entry is present in position 2, Form 8332, Form 2120, or copy of divorce decree is attached, edit FPC "A" .

    Note:

    Form 8332 or Form 2120 must show entries.

  3. The parent relationship (position 3) includes notations of the following:

    • "Parent" , "father" , or "mother"

    • "Stepparent" , "stepfather" , or "stepmother"

    • "Parent-in-law" , "father-in-law" , or "mother-in-law"

    • "Grandparent" , "grandfather" , or "grandmother"

    • "Great-grandparent" , "great-great-grandparent" , "great-grandfather" , "great-great-grandfather" , "great-grandmother" , "great-great-grandmother"

  4. The "qualifying child" relationship (position 4) includes notations of the following:

    • "Foster child" , "foster son" , or "foster daughter"

    • "Ward"

    • Any child placed by an authorized agency

    • "Brother" , "sister" , "brother-in-law" , "sister-in-law" , "step-brother" , "step-sister" , "half-brother" or "half-sister"

    • "Nephew" or "niece"

  5. Include in "other" relationships (position 5) any dependent not identified in (1), (3) or (4) above. "Other" relationships include the following:

    • "Uncle" or "aunt"

    • "Son-in-law" or "daughter-in-law"

    • "Friend" , "boyfriend" , or "girlfriend"

    • All dependents who did not live in the US except for parent relationships

      Note:

      Indication that the dependent did not live in the U.S. include, but are not limited to the following notation:
      "CN" or "Canada"
      "F" for foreign dependent
      "MX" or "Mexico"

    • "Cousin"

    • "Godchild" , "godson" , "goddaughter"

    • "Boyfriend's/girlfriend's child" , "boyfriend's/girlfriend's son" , "boyfriend's/girlfriend's daughter" , "mother of child" , "father of child"

    Note:

    This list is not all inclusive.

  6. If more than nine dependents are identified for position 1, edit the excess in position 6.

    Note:

    Do not use Schedule EIC to determine Dependent positions.

Dependent's Name Control and TIN

  1. Up to four dependents' name controls and TINs can be transcribed.

Dependent's TIN
  1. Every dependent claimed must have a valid TIN. Search attachments, including Schedule EIC, and Form 2441, for any dependent TIN not listed or invalid on the Dependent lines.

    Note:

    If editing from attachments and the taxpayer indicates dependent children are eligible for the Child Tax Credit or Credit for Other Dependents, ensure the correlating checkboxes are marked on Dependent line, column (4).

    Note:

    If a Form W-7A is attached, see IRM 3.11.3.13.2.1.1.

  2. If the TIN is found, and:

    Four TINs are Then
    Already listed, "X" the name of the dependent(s) without a listed TIN.
    Not already listed, Edit up to four TINs to Dependent lines. (See Figure 3.11.3-58.)

    Figure 3.11.3-58

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  3. If the TIN is invalid or not found on the return or attachments, take the following actions:

    If the taxpayer And Then
    Provides no TIN, less than four TINs are present for other dependents, "X" the dependent’s name. (See Figure 3.11.3-59.)
    Provides no TIN, at least four TINs are present for other dependents, "X" dependent- positions 1-6. (See Figure 3.11.3-60.)

    Note:

    Also "X" the dependent’s name if present.

    Notes "Died" , (child born during the tax period and died during the same or next consecutive tax period), birth or death certificate, or copies of hospital medical record(s) are not attached, Correspond for the missing birth certificate. For Form 3531, use box 5 and for Form 6001, use box E.

  4. Correspond for missing TINs of all dependents when corresponding for other missing return items. For Form 3531, use box 4 and for Form 6001, use box F for Form 5129.

    Exception:

    Do not correspond for a missing dependent TIN when any of the following apply:
    • there is an indication the dependent was born during the tax period and died during the same or next consecutive tax period.
    • the taxpayer notates "Amish" , "Mennonite" , "Form 4029" , or if Form 4029 is attached.
    • there is an indication of "ITIN Rejected" .
    • Notation of NRA is present.

    Figure 3.11.3-59

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    Figure 3.11.3-60

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Adoption TIN
  1. A taxpayer who does not know the TIN of the child they are adopting may still claim an exemption for the dependent by obtaining a temporary adoption taxpayer identification number (ATIN). ATINs are used for tax purposes only and are obtained by filing Form W-7A. ATINs are processed at the AUSPC only. ATINs appear in the following format: 9XX-93-XXXX.

  2. When Form W-7A is attached to the return, verify the child listed on the Form W-7A is being claimed as a dependent on the return.

    1. If the child is listed as a dependent in Position 1 and already has an ATIN, "X" the photocopy of the Form W-7A and continue processing the return.

    2. If the child is not claimed as a dependent, detach the Form W-7A and related documentation, and route to AUSPC. Edit an action trail on the return and continue processing. (Austin - follow local routing instructions.)

    3. If the child is listed as a dependent on the return and the TIN is missing, edit the received date on Form W-7A in MMDDYY format and detach it from the return. Route the Form W-7A and all related documentation to AUSPC. Edit an action trail on the return and continue processing.

      Note:

      Documentation attached to the Form W-7A should be at least one of the following:
      • Placement agreement between the parent(s) and the agency.
      • Document signed by the hospital authorizing the release of a newborn.
      • Court Order ordering or approving the placement of a child for legal adoption.
      • Affidavit signed by the adoption attorney or government official who placed the child with the parent(s) for legal adoption.

    4. Complete Form 3210 and mail Forms W-7A and documentation to AUSPC at:
      Internal Revenue Service
      3651 S. IH 35
      Stop: 6182
      Austin, TX 78741-7855

    Exception:

    AUSPC only: Do not detach Form W-7A from the return. Follow local routing procedures. When the ATIN unit sends the return back through processing after assigning the ATIN, they will edit the ATIN assignment date on the left side margin of refund returns only. For example, 02 RPD 05-14-2024. Edit this date on line 4 of Form 3471, Edit Sheet, if current date is after April 15, 2024.

Dependent's Name Control
  1. The name control(s) must be present for the first four dependents with TINs listed on the Dependent lines of Form 1040. If missing, edit the name control(s) to the dependents name area.

    Note:

    When the dependent name control is the same for each dependent, ditto marks are acceptable after editing the first dependent name control.

  2. Determine the missing name control(s) in the following priority:

    1. From Schedule EIC or other supporting attachments. (See Figure 3.11.3-61.)

      Note:

      If editing from attachments and the taxpayer indicates dependent children are eligible for the Child Tax Credit or Credit for Other Dependents, ensure the correlating checkboxes are marked on Dependent line, column (4).

      Note:

      Honor taxpayer’s ditto (“) marks when used to duplicate dependent last names.

    2. From the primary taxpayer's name control. (See Figure 3.11.3-62.)

    Figure 3.11.3-61

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    Figure 3.11.3-62

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Form 1040

  1. The instructions provided in this subsection of the manual are for editing pages 1 and 2 of the Form 1040.

    Reminder:

    Any instructions for Form 1040 also apply to Form 1040-SR, 1040(SP) and 1040-SR(SP).

    These instructions include:
    • General editing procedures

    • Income (lines 1a through 8)

    • Adjusted gross income (line 11)

    • Total tax (line 24)

    • Federal Income Tax Withheld (lines 25a through 25c)

    • Refund or amount owed (lines 35a through 37)

    • Estimated Tax Penalty (line 38)

    • Third Party Designee

    • Signature

    • Preparer information

  2. All lines on Form 1040 are T-lines, except for the following:

    • Lines 1b - 1h

    • Line 12

    • Line 14

    • Line 17

    • Line 18

    • Line 20

    • Line 22

    • Line 25a

    • Line 25b

    • Line 25c

    • Line 31

    • Line 34

  3. There are also T-Compute lines on Form 1040. These are:

    • Line 1z

    • Line 9- Total Income

    • Line 11 - Adjusted Gross Income

    • Line 15 - Taxable Income

    • Line 21 - Total Non-Refundable Credits (NA for TY18-TY19)

    • Line 24 - Total Tax

    • Line 25d - Federal Income Tax Withheld

    • Line 32 - Total Other Payments and Refundable Credits

    • Line 33 - Total Payments

    • Line 35a - Refund Amount

    • Line 37 - Balance Due Amount

    Note:

    Refer to Job Aid 2431-009 for an illustration of all Form 1040 T-lines and T-Compute lines for all related transcribed forms and schedules.

  4. Refer multiple Form 1040 for the same taxpayer and same tax period to the Work Leader for combining.

Form 1040, General Editing Instructions

  1. Edit RPC "L" if there are no significant T-line entries present or edited from attachments on lines 1 through 38. Also edit CCC "B" .

  2. Edit RPC "V" when the tax form is computer generated. Computer-generated forms are identified by a three-alpha character software code in the bottom margin of page 1 or 2 (for 1040-SR page 1, 2, 3 or 4). (See Figure 3.11.3-63.) Also edit SPC "Y" if FFF is present in the bottom margin.

    Exception:

    Do not edit RPC "V" on computer-generated returns when there is an indication the return was prepared by Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) (e.g., the presence of an "S" within the PTIN field). (See IRM 3.11.3.14.8.2.)

    Figure 3.11.3-63

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  3. Some special conditions on returns will require special editing procedures. Taxpayers are instructed to note certain conditions on the return which you must identify. Edit these returns using instructions in the "Special Situations and Returns" subsection. These special situations are:

    Special Situations IRM Reference
    Combat Zone and other Military Operations IRM 3.11.3.6.1.1
    Killed in Terrorist Action (KITA) IRM 3.11.3.6.1.2
    Natural Disaster/Emergency Relief Program IRM 3.11.3.6.1.3
    Hardship/Taxpayer Advocate Services (TAS) IRM 3.11.3.6.1.4
    Examination case IRM 3.11.3.6.1.5
    Frivolous Filer/Non-Filer Returns IRM 3.11.3.6.1.6
    Identity Theft IRM 3.11.3.6.1.7
    Suicide Threat IRM 3.11.3.6.1.8

  4. Some types of returns will require special editing procedures. Edit the returns using the instructions in the "Special Situations and Returns" subsection. These special returns are:

    Special Returns IRM Reference
    Amended IRM 3.11.3.6.2.1
    Unprocessable IRM 3.11.3.6.2.2
    Blank IRM 3.11.3.6.2.3
    Incomplete IRM 3.11.3.6.2.4
    Uncomputed IRM 3.11.3.6.2.5
    Blocked or Deferrable Income IRM 3.11.3.6.2.6
    Correspondence Imaging Inventory (CII) IRM 3.11.3.6.2.7
    Combined Tax Liabilities IRM 3.11.3.6.2.8
    Community Property IRM 3.11.3.6.2.9
    Form 8938, Statement of Foreign Financial Assets IRM 3.11.3.6.2.10
    Injured Spouse IRM 3.11.3.6.2.11
    Innocent Spouse IRM 3.11.3.6.2.12
    International IRM 3.11.3.6.2.13
    Misblocked IRM 3.11.3.6.2.14
    Misfiled IRM 3.11.3.6.2.15
    Reinput IRM 3.11.3.6.2.16
    Returns Secured by Collections IRM 3.11.3.6.2.17
    Short Period IRM 3.11.3.6.2.18
    Substitute for Return IRM 3.11.3.6.2.19
    52-53 Week IRM 3.11.3.6.2.20
    Blind Trust IRM 3.11.3.6.2.21
  5. Refer to the decedent return instructions in IRM 3.11.3.10 when any of the following are present:

    • "Deceased" is written on the return

    • A date of death is present on the return

    • "Surviving spouse" is written in the caption or the signature area

    • There is any other indication the taxpayer is deceased

    • "Estate of" is present in the caption.

  6. Other notations and conditions may also require special editing. These are included in the line-by-line instructions.

Income, Adjustments, and Credits - Lines 1a through 32

  1. All lines on Form 1040 are edited in dollars only except lines 24 through 38.

Line 1a - W-2 Wages
  1. Use the table below for editing conditions on line 1a Form 1040:

    Condition on Line 1a Action
    Entry on line 1a, no Form W-2 attached. Take no action. Form W-2 is not required for line 1a. (May be required as support for earned income when EIC is claimed.)
    (See IRM 3.11.3.14.2.32.)
    Line 1a is blank. Edit amounts from Wages, tips and other compensation box on Forms W-2.

    Exception:

    Do not edit to line 1a if Form W-2 income is for a minister, insurance salesman, or statutory employee and the income is reported elsewhere on the return.

    W-2 Income Edit to line 1a if found elsewhere.

    Exception:

    Leave where found and edit RPC"S" if taxpayer is a minister, insurance salesman, or if statutory employee is indicated.

  2. Use the following table for editing other income:

    Income Identified As: Action:
    Dependent Care Benefits (DCB) on other than Form 1040, line 1e, Delete where found and edit to line 1z.
    Deferred Compensation (DFC) on other than Schedule 1, line 8t, Delete the amount where found and edit to Schedule 1, line 9.
    Disability Pension, (on other than lines 1h, 4a, or 4b),
    1. If statement indicates treatment as retirement pension, delete and add to line 5b.

      Note:

      If Disability Pension is identified on line 5a or 5b, take no action.

    2. If Form 1099-R, box 7, has Distribution Code 3, delete where found and add to line 1z.

    Disability Pension (not on lines 1h, 4a, or 4b) identified from:
    • Form 1099-R with Code 3 in Box 7.

    • Disability indicated on Form 1099-R.

    • Other indication that Disability Pension is included on the return.

    Delete where found and add to line 1z.
    Gambling other than on Schedule 1, line 8b,
    1. Delete gambling amount where found and add to Schedule 1 line 9.

      Note:

      It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

    2. If Schedule A is attached, see IRM 3.11.3.18.1.

    Gambling (Net: winnings minus losses),
    1. No indication of a professional gambler:

      1. Delete amount where found and edit to Schedule 1, line 9.

        Note:

        It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

      2. If net amount is zero, and no gross amount is indicated and:
        • Form W-2G is attached, edit CCC "Y" and an Action Trail.
        • Form W-2G is not attached, correspond for gross winnings
        with Form 3531/6001, using fill-in 7, per Exhibit 3.11.3-18.

    2. Indication of professional gambler:

      1. Delete gambling amount from where found and add to Schedule 1 line 3.

        Note:

        It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

      2. Correspond for Schedule C, if not attached.

      3. If Schedule SE is not attached or reported, also correspond for SE tax liability when the amount is $434 or more. For Form 6001, use box W. For Form 3531, check box 16.

    Medicaid Waiver Payment (MWP), Notice 2014-7, IRC 131, In-Home Health Services (IHHS), In-Home Support Services (IHSS), Difficulty of Care payment, Take No Action

    Note:

    This income is an acceptable source for EIC.

    Non-Disability Pension, Delete where found. Move the amount to line 5b. (See Figure 3.11.3-64.)
    Non-Employee Compensation other than on line 1a, 1h, or Schedule 1, line 8z,
    1. Delete where found and add to Schedule 1 line 9.

      Note:

      It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

    2. If amount is $434 or more (with or without Form 1099-NEC), and Schedule SE is not attached or reported, also edit RPC "N" .

      Note:

      Do not edit RPC "N" if Self-Employment and non - self-employment cannot be broken down.

    Non-Taxable Income:
    • Accident and health insurance proceeds

    • "Black lung" benefits

    • Casualty insurance and other reimbursements

    • Child support

    • Damages awarded for physical injury or sickness

    • Federal Employees' Compensation Act (FECA) payments

    • Interest on state or local government obligations

    • Public Aid

    • Supplemental Security Income (SSI)/SSI Disability

    • Tax-Sheltered Annuities

    • Temporary Assistance for Needy Families (TANF)

    • VA Benefits

    • Welfare Benefits/Payments

    • Workforce Payments

    • Worker's Compensation

    Subtract all income identified as nontaxable from From 1040, line 1a, or, if reported on lines 1b through 1h, subtract from line 1z.
    Pension, See Disability or Non-Disability Pension.
    Prisoner Income (PRI), wages earned while incarcerated other than on Schedule 1, line 8u, Delete where found and edit to Schedule 1 line 9. For TY22 and later, also edit SPC "J" .
    Railroad Retirement Benefits,
    1. If gross and taxable amounts with a difference of $1 or more can be determined, move to lines 5a and 5b.
      See IRM 3.11.3.14.2.12.

    2. Otherwise, edit the amount to line 5b.

    Scholarship (SCH), Fellowship, Grant, or Stipend other than on Schedule 1, line 8r, Delete the amount where found and edit to Schedule 1, line 8r.
    Self-Employment Income other than on Schedule 1, line 8z (See Exhibit 3.11.3-11 for an extensive listing of types of self-employment),
    1. Delete where found and add to Schedule 1 line 9.

      Note:

      It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

    2. If amount is $434 or more and Schedule SE is not attached or reported, also edit RPC "N" .

    3. If Form 1099-NEC is attached with or without a notation and an amount is present in box 1, Form 1099-NEC, edit RPC "N" unless the amount is less than $434 or Schedule SE is present. On prior year returns, amount may be found on Form 1099-MISC, box 7.

      Note:

      Do not edit RPC "N" if any of the following conditions exist:
      - Self-Employment and non-self-employment cannot be broken down.
      - Taxpayer reported self-employment income on line 1a and included the amount on Form 8919.

    Sick Pay, Delete where found and edit to Form 1040, line 1a.
    Social Security Benefits,
    1. If gross and taxable amounts can be determined, move to lines 6a and 6b.

    2. Otherwise, move the amount to line 6b.

    Strike Pay/Benefits, Delete where found and edit to Form 1040, line 1a.
    Sub-Pay TRA (Repayment of Supplemental Unemployment Benefits (SUB)), If repayment is indicated on Schedule 1 line 24z and it is for SUB amounts received in:
    • Tax period of return - delete the repayment amount and adjust line 25 to exclude it.

    • Prior tax period - do not adjust line 25.

      Note:

      If the year of payments is not noted, assume they were made in the tax period of the return.

    Unemployment Compensation other than on Schedule 1, line 7, Delete where found and add to Schedule 1 line 7.

    Note:

    It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

    Note:

    All income reported or identified as nontaxable should be reported on Schedule 1.

    Figure 3.11.3-64

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Line 1b - Household Employee Wages (HSH)
  1. Edit SPC "E" if an amount is present on line 1b.

Line 1e - Taxable Dependent Care Benefits (DCB) - Form 2441
  1. If an amount is present on line 1e, Form 2441 must be attached. If not attached, correspond for Form 2441.

Line 1f - Employer Provided Adoption Benefits - Form 8839
  1. If an amount is present on line 1f, Form 8839 must be attached. If not attached, correspond for Form 8839.

Line 1g - Wages - Form 8919
  1. If an amount is present on line 1g, Form 8919 must be attached. If not attached, correspond for Form 8919.

Line 1h - Other Earned Income
  1. (Reserved)

Line 1i - Nontaxable Combat Pay Election
  1. Nontaxable Combat Pay is entered on line 1i. If found elsewhere on the return, delete where found and edit to line 1i.

Line 1z - Total Wages
  1. Compute and edit line 1z when it is blank, dash or zero and there are any entries on lines 1a - 1h.

Line 2a -Tax-Exempt Interest (TEI)
  1. If Schedule B is attached, perfect line 2a when it is blank or amount differs from tax-exempt interest amount on Schedule B, Part I by more than $1.

  2. Tax-exempt interest indications include:

    • "Tax-Exempt Interest" ("TEI" ) or "Tax Exempt" ("TE" )

    • "Tax-Exempt Municipal Bonds"

    • "Exempt" , "Exempt Interest" , "EI" , "E" or "I"

    • "Tax Free" or "Tax-Free Interest"

    • "Nontaxable" or "Nontaxable Interest"

Line 2b -Taxable Interest Income
  1. If Schedule B is attached, perfect line 2b when it is blank or amount differs from interest amount on Schedule B, line 4 by more than $1.

Line 3b - Ordinary Dividends
  1. If Schedule B is attached, perfect line 3b when it is blank or amount differs from ordinary dividends amount on Schedule B, line 6 by more than $1.

  2. If the amount on line 3b matches the entry on line 1, Form 1040, "X" the amount on line 3b.

  3. If line 3b is blank, dash or zero, and line 3a has an entry:

    • arrow the entry on line 3a to line 3b, or

    • edit the entry on line 3a to line 3b and "X" line 3a.

  4. If line 3b is less than 3a, "X" line 3b.

  5. If an amount identified as "Alaska Permanent Fund" is present on line 3b:

    1. "X" line 3b.

    2. Edit the amount to Schedule 1 line 9.

      Note:

      It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

Lines 4a and 4b - IRAs
  1. Delete the amount on line 4a when lines 4a and 4b are the same or there is a difference of less than $1. (See Figure 3.11.3-65.)

  2. Do not edit the amount from 4a on line 4b when line 4b is blank.

    Figure 3.11.3-65

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Lines 5a and 5b - Pensions and Annuities
  1. Delete the amount on line 5a when lines 5a and 5b are the same or there is a difference of less than $1.

  2. Do not edit the amount from 5a to line 5b when line 5b is blank.

  3. Do not move pension income from line 5b to line 1.

  4. Move the gross and taxable amounts of Railroad Retirement Benefits (RRB) to lines 5a and 5b when claimed elsewhere on the return.

Lines 6a, 6b and 6c - Social Security Benefits
  1. If an amount is present on line 6b and the amount on line 6a is the same or line 6a is blank:

    1. If Form SSA-1099 is attached, edit the gross Social Security amount in box 5 to line 6a.

    2. Take no action when the gross amount of Social Security payments cannot be determined.

  2. "X" a negative amount on line 6a or 6b.

  3. Take no action when the taxpayer writes "D" on line 6a or 6b.

  4. Edit CCC "H" when the taxpayer marks the box on line 6c, indicating Lump Sum Exclusion method is being used.

Line 7 - Capital Gain or Loss
  1. Edit RPC "T" when all the following apply (see Figure 3.11.3-66):

    • There is a positive amount of $1 or more on Form 1040, line 7.

    • Schedule D is not attached.

    • Line 7 box is marked.

    Figure 3.11.3-66

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  2. When an amount is present on line 7, Schedule D is not attached, and the line 7 checkbox is not marked or the line 7 checkbox is marked and a negative entry is present on line 7:

    If And Then
    A document (other than a BMF Schedule D) from which a Schedule D (Form 1040) can be dummied is attached, Column (h) can be determined, Dummy a Schedule D. Edit total short term gains/losses to line 7 and total long term gains/losses to line 15, Schedule D. (See Figure 3.11.3-67.)

    Note:

    See Exception below.

    There are no documents attached from which a Schedule D can be dummied, The amount on line 7 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Dummy the amount to line 7, Schedule D. (See Figure 3.11.3-68.)

    Note:

    See Exception below.

    There are no documents attached from which a Schedule D can be dummied, The amount on line 7 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Correspond for the missing Schedule D.
    A BMF (e.g., Form 1120, Form 1041) Schedule D is attached, Column (h) can be determined, Either renumber the lines as necessary on the BMF Schedule D to match the Schedule D (Form 1040) T-lines, or dummy a Schedule D (Form 1040) by editing all T-lines from the BMF Schedule D.

    Note:

    If renumbering, edit sequence code "12" and see Exception below.

    Exception:

    Do not dummy Schedule D if corresponding for other missing return items. Instead, include the request for Schedule D in the correspondence to the taxpayer.

  3. If income reported from Insurance Companies Demutualization is present (reported by the taxpayer on Form 1099-B), but entered on a line other than Form 1040, line 7, edit that amount to line 7 and dummy a Schedule D.

    Figure 3.11.3-67

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    Figure 3.11.3-68

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Line 8 - Other Income
  1. If there is an amount entered on Form 1040, line 8, Schedule 1 must be attached. If not attached, correspond for Schedule 1. If corresponding for Schedule 1 for entry on line 8 and line 10, correspond for only one missing Schedule 1. Use the first entry amount and line number on the return.

    Exception:

    If a Schedule 1 can be dummied from attachments, do not correspond for a Schedule 1 unless already corresponding for other missing information. When dummying Schedules 1-3, use Form 6114-A. See paragraph (2) below.

  2. Use the following table as a guide to dummying Schedule 1 Part I:

    If Then
    Schedule C is attached with an entry on line 31, Dummy the line 31 amount to line 3, Schedule 1.
    Form 4797 is attached with an entry on line 18b, Dummy the line 18b amount to line 4, Schedule 1.
    Schedule E is attached with an entry on line 26 or 41, Dummy the line 41 amount or line 26 if line 41 is blank, to line 5, Schedule 1.
    Schedule F is attached with an entry on line 34, Dummy the line 34 amount to line 6, Schedule 1.
    Form 8889 is attached with an entry on line 16 or line 20, Dummy the line 16 or line 20 amount to line 9, Schedule 1.
    Form 1099-G is attached with an amount for Unemployment Compensation, Dummy amount to line 7, Schedule 1.

    Note:

    This list is not all inclusive.

Line 9 - Total Income
  1. Compute and edit line 9 when it is blank, dash or zero and there are any entries on lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8.

Line 10 - Adjustments to Income
  1. If there is an amount entered on Form 1040, line 10, Schedule 1 must be attached. If not attached, correspond for Schedule 1. If corresponding for Schedule 1 for entry on line 8 and line 10, correspond for only one missing Schedule 1. Use the first entry amount and line number on the return.

    Exception:

    If a Schedule 1 can be dummied from attachments, do not correspond for a Schedule 1 unless already corresponding for other missing information. When dummying Schedules 1-3, use Form 6114-A. See paragraph (2) below.

  2. Use the following table as a guide to dummying Schedule 1 Part II:

    If Then
    Form 2106 is attached with an amount on line 10 Dummy the line 10 amount to line 12, Schedule 1.
    Form 8889 is attached with an amount on line 13, Dummy the line 13 amount to line 13, Schedule 1.
    Form 3903 is attached with an amount on line 5, Dummy the line 5 amount to line 14, Schedule 1.
    Schedule SE is attached with an amount on line 13, Dummy the line 13 amount to line 15, Schedule 1.

    Note:

    This list is not all inclusive.

Line 11 - Adjusted Gross Income
  1. Perfect line 11 when it is blank, dash, zero, or illegible by subtracting line 10 from line 9.

Line 12 - Standard Deduction or Itemized Deductions (Not Transcribed)
  1. Schedule A with entries present must be attached if any of the following conditions exist. Correspond if missing.

    Exception:

    Do not correspond for Schedule A if the taxpayer computed line 11 to zero or a negative dollar amount.

    1. "IE" is noted to the left of line 12, and the amount claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. The amount on line 12 is not any of the standard deduction amounts listed below and the "Someone can claim you as a dependent" or "Someone can claim your spouse as a dependent" (FS 2 or FS 6), checkbox is not marked. (See Figure 3.11.3-69.)

      Note:

      Do not factor in filing status or ABI when making determinations on standard deduction.

    Filing Status ABI Boxes marked Appropriate Amount
    1 - Single 0 $13,850
    1 - Single 1 $15,700
    1 - Single 2 $17,550
    2 - Married Filing Jointly or 5 - Qualifying Surviving Spouse 0 $27,700
    2 - Married Filing Jointly or 5 - Qualifying Surviving Spouse 1 $29,200
    2 - Married Filing Jointly or 5 - Qualifying Surviving Spouse 2 $30,700
    2 - Married Filing Jointly or 5 - Qualifying Surviving Spouse 3 $32,200
    2 - Married Filing Jointly or 5 - Qualifying Surviving Spouse 4 $33,700
    3 - Married Filing Separately 0 $13,850
    3 - Married Filing Separately 1 $15,350
    3 - Married Filing Separately 2 $16,850
    3 - Married Filing Separately 3 $18,350
    3 - Married Filing Separately 4 $19,850
    4 - Head of Household 0 $20,800
    4 - Head of Household 1 $22,650
    4 - Head of Household 2 $24,500

    Figure 3.11.3-69

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Line 13 - Qualified Business Income Deduction
  1. If an amount is present, Form 8995 or Form 8995-A must be attached. If missing, correspond for Form 8995-A.

    Note:

    See IRM 3.11.3.51, Form 8995 / 8995-A / 8995-A Schedule C - Qualified Business Income Deduction, for possible editing of FPC "H" .

Line 15 - Taxable Income
  1. Compute and edit line 15 only when it is blank, dash, zero, or illegible, and there are entries leading to a positive total.

Line 16 - Tax
  1. If box "1" and/or "2" on line 16 is/are marked, the indicated form (i.e., Form 8814 or Form 4972) must be attached. If missing, correspond for the applicable missing form.

  2. If box "3" on line 16 is marked and "965" is noted, edit RPC "F" . Form 965-A must be attached. However, if not attached, correspond only if corresponding for other missing information.

Line 17 - Additional Taxes (Not Transcribed)
  1. If an amount is present on line 17, Schedule 2 must be attached. If not attached, correspond for Schedule 2.

    Exception:

    If a Schedule 2 can be dummied from attachments, do not correspond unless already corresponding for other missing information. When dummying Schedules 1-3, use Form 6114-A.

  2. Follow instructions below for dummying Schedule 2 Part I:

    If Then
    Form 6251 is attached Dummy the line 11 amount to line 1, Schedule 2
    Form 8962 is attached Dummy the line 29 amount to line 2, Schedule 2

Line 19 - Child Tax Credit or Credit for Other Dependents - Schedule 8812
  1. Reserved.

Line 20 - Non-Refundable Credits (Not Transcribed)
  1. If an amount is present on line 20, Schedule 3 must be attached.

    • If Schedule 3 is not attached, correspond for Schedule 3. If corresponding for Schedule 3 for entry on line 20 and line 31, correspond for only one missing Schedule 3. Use the first entry amount and line number on the return.

    • If Schedule 3 is attached, line 20 of Form 1040 is≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and lines 1-7 of Schedule 3 are blank, correspond for an explanation unless the taxpayer indicated FNS. For Form 6001, check box "O" . For Form 3531, check box 19-20.

    Exception:

    If a Schedule 3 can be dummied from attachments, do not correspond unless already corresponding for other missing information. When dummying Schedules 1-3, use Form 6114-A.

  2. Follow instruction below for dummying Schedule 3 Part I:

    If Then
    Form 1116 is attached, Dummy the line 35 amount to line 1, Schedule 3.
    Form 2441 is attached, Dummy the line 11 amount to line 2, Schedule 3.
    Form 8863 is attached, Dummy the line 19 amount to line 3, Schedule 3.
    Form 8880 is attached, Dummy the line 12 amount to line 4, Schedule 3.
    Form 5695 is attached, Dummy the line 15 amount to line 5a, Schedule 3. Dummy the line 32 amount to line 5b, Schedule 3
    Form 3800 is attached, Dummy the line 38 amount to line 6a, Schedule 3.
    Form 8801 is attached, Dummy the line 25 amount to line 6b, Schedule 3.
    Form 8839 is attached, Dummy the line 16 amount to line 6c, Schedule 3.
    Schedule R is attached, Dummy the line 22 amount to line 6d, Schedule 3.
    Form 8910 is attached, Dummy the line 15 amount to line 6e, Schedule 3.
    Form 8936 is attached, Dummy the line 13 amount to line 6f, Schedule 3. Dummy the line 18 amount to line 6m, Schedule 3.
    Form 8396 is attached, Dummy the line 9 amount to line 6g, Schedule 3.
    Form 8859 is attached, Dummy the line 3 amount to line 6h, Schedule 3.
    Form 8834 is attached, Dummy the line 7 amount to line 6i, Schedule 3.
    Form 8911 is attached, Dummy the line 19 amount to line 6j, Schedule 3.
    Form 8912 is attached, Dummy the line 12 amount to line 6k, Schedule 3.
    Form 8978 is attached, Dummy the line 14 amount to line 6l, Schedule 3.

    Note:

    This list is not all inclusive.

  3. Only the first line with an amount will be transcribed from lines 6h - 6l. When dummying from the following forms, edit from the first form with an amount and disregard the other forms.

    • Form 8859

    • Form 8834

    • Form 8911

    • Form 8912

    • Form 8978

Line 21 - Total Statutory Credits
  1. Perfect line 21 when it is blank, dash, zero, or illegible by adding lines 19 and 20.

Line 23 - Other Taxes
  1. If an amount is present on line 23 and Schedule 2 is not attached or Schedule 2 is attached and lines 4 through 20 are blank, correspond for missing Schedule 2.

    Exception:

    If a Schedule 2 can be dummied from attachments, do not correspond unless already corresponding for other missing information. When dummying Schedules 1-3, use Form 6114-A.

  2. Follow instructions below for dummying Schedule 2 Part II:

    If Then
    Schedule SE is attached, Dummy the line 12 amount to line 4, Schedule 2.
    Form 4137 is attached, Dummy the line 13 amount to line 7 Schedule 2.
    Form 8919 is attached, Dummy the line 13 amount to line 7, Schedule 2.
    Form 5329 is attached, Dummy the line 4 amount to line 8, Schedule 2.
    Form 1040 Schedule H is attached, Dummy the line 26 amount to line 9, Schedule 2.
    Form 5405 is attached, Dummy the line 8 amount to line 10, Schedule 2.
    Form 8611 is attached, Dummy the line 17 amount to line 16, Schedule 2.
    Form 8889 is attached, Dummy the line 17b amount to line 18, Schedule 2.
    Form 8853 is attached, Dummy the line 9b amount to line 18, Schedule 2.
    Form 8959 is attached, Dummy the line 18 amount to line 11, Schedule 2.
    Form 8960 is attached, Dummy the line 17 amount to line 12, Schedule 2.

    Note:

    This list is not all inclusive.

Line 24 - Total Tax
  1. Edit line 24 as dollars and cents when adjusting or computing and editing amounts.

  2. Compute and edit line 24 when it is blank, dash, zero (0), or illegible and there are entries leading to a total.

    1. Add lines 22 & 23

    2. If line 18 has a significant entry and there are no entries on lines 19 through 23, edit the line 18 amount on line 24

    3. If line 16 has a significant entry and there are no entries on lines 17 through 23, edit the line 16 amount on line 24.

  3. Use the table below for editing CCC "B" :

    Reminder:

    Do not edit CCC "B" on uncomputed returns.

    If And Then
    Line 15 is negative, zero (0), dash or "None" is noted, or it can be computed to be negative or zero (0), Lines 16 through 38 (excluding 35b, c, and d) are blank, dash, zero (0), "None" or "N/A" . Edit CCC "B" . (See Figure 3.11.3-70.)
    A significant entry on line 16 is less than or equal to line 21, Lines 22 through 38 (excluding lines 35b, c, and d) are blank, dash, zero (0), "None" or "N/A" , Edit CCC "B" . (See Figure 3.11.3-71.)

  4. Delete any amount included in line 24 when there is an indication that it is from Form 5330 (Return of Excise Taxes Related to Employee Benefit Plans). Detach Form 5330 and route it to Receipt and Control.

    Figure 3.11.3-70

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    Figure 3.11.3-71

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Line 25a through 25d - Withholding
  1. Valid sources of U.S. Withholding include Form W-2, Form 1099 series, and Form 8959.

  2. Take one of the following actions for line 25:

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

    Exception:

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

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

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

    Note:

    If none of the conditions described above apply, take no action

  3. If corresponding for other missing items, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ For Form 6001 use box G and ask for total amount on line 25d; for Form 3531 use box 6. If line 25d is blank, ask for the amount present on line 25a, 25b or 25c.

    Note:

    An acceptable alternative source for withholding support may be a worksheet or attachment if it has similar information as provided on a Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions from Retirement Plans, Insurance Contracts, etc. Minimum requirements include the name of the employer, income and withholding. An IRS Transcript is always acceptable.

    Exception:

    "Form 1099" , "1099" , "W-2" , "Form W-2" or similar statement written in the line 25 area or on an attached worksheet is not an acceptable source for withholding support.

  4. Edit CCC "8" on a refund return when withholding is significant and there is only a single supporting document attached that is one of the following:

    • A substitute statement (e.g., substitute Form W-2, tax software statement, or employer-provided earnings statement with year-to-date totals) or attachment or worksheet as explained at IRM 3.11.3.14.2.30(2).

      Note:

      Edit CCC "8" when there is one Form 4852 present or multiple Forms 4852 present to support withholding and no other withholding documentation is present.

    • Handwritten, see Figure 3.11.3-72

    • Other than a computer-printed Form W-2

    • Altered name, SSN, wages, or federal income tax withheld.

    Exception:

    Do not edit CCC "8" when Form 1099-R, Form W-2G, or IRS Transcript is attached, or if the return is identified as a military or combat zone return. See the special military return instructions in IRM 3.11.3.6.1.1.

    Note:

    To be considered a "single supporting document" , the document must show support from only one employer. Consider Form 4852 and an Employer-provided earnings statement with the same employer and identical amounts to be a "single supporting document" .

    Figure 3.11.3-72

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Line 26 - Estimated Tax Payments
  1. Delete and edit to the correct line any amounts determined to be other than:

    • ES tax payments

    • An overpayment applied from the 2022 return

  2. Edit Action Code "430" to send the return to Rejects in the following circumstances:

    • A statement is present on or near line 26 indicating the taxpayer wants the credit applied to their spouse's account.

    • The return is FS 3 or 6 and there is a statement or schedule present showing how estimated payments are to be allocated.

Line 27 - Earned Income Credit (EIC)
  1. The taxpayer will claim EIC by any of the following:

    1. Entering an amount on line 27.

    2. Writing "EIC" in the line 27 area.

    3. Attaching Schedule EIC with entries.

  2. Take one of the following actions when no money amount is present on line 27 and Schedule EIC is not attached:

    Note:

    For TY20 and prior, take one of the following actions when no money amount is present on line 27, Schedule EIC is not attached and the FS is other than 3 or 6.

    If the taxpayer writes "EIC" in the line 27 area and Then
    The amount on line 11 is less than $17,640 ($24,210 for FS 2), See IRM 3.11.3.73.3.1.6. Edit "888" on line 27.

    Note:

    If editing "888" , a source of earned income must be present.

    The amount on line 11 is more than or equal to $17,640 ($24,210 for FS 2) but less than $56,838 ($63,398 for FS 2), See IRM 3.11.3.73.3.1.6. Correspond for Schedule EIC with Form 3531/6001 using fill-in 29, per Exhibit 3.11.3-18.

    Note:

    Do not edit CCC "B" if "888" has been edited or "EIC" is noted.

  3. If an amount is claimed on line 27, and Schedule EIC is missing, correspond when either of the following conditions apply:

    • Line 11 is equal to or greater than $17,640 ($24,210 for FS 2) and less than $56,838 ($63,398 for FS 2)

    • Line 27 is greater than $600

  4. Do not correspond for Schedule EIC or source of earned income if one of the following conditions apply:

    • Primary TIN (or Secondary TIN for FS 2) is invalid

    • Either spouse has an ATIN, ITIN or IRSN

    • DSI checkbox has been checked:
      "Someone can claim you as a dependent" checkbox
      "Someone can claim your spouse as a dependent" checkbox

    • Line 11 of Form 1040 is $56,838 ($63,398 for FS 2) or more

    • You can determine the entire income amount to be non-earned income

  5. Correspond when EIC is being claimed and the source of earned income is not indicated or attached and cannot be determined through research. (See Figure 3.11.3-73.) For Form 6001, check box X. For Form 3531, check box 7.

    Exception:

    Do not correspond for the source of earned income on Secured Returns.

    Note:

    Do not research source of earned income if there are other correspondence issues on the return. Instead, correspond for source of earned income when corresponding for other missing information. See the table below for examples of what is (and is not) earned income.

    Figure 3.11.3-73

    This is an Image: 33440073.gif

    Please click here for the text description of the image.

    Earned Income NOT Earned Income
    • Form W-2 or similar statement

    • Form 1099-MISC (Box 7 on TY19 and prior)

    • Form 1099-NEC (TY20 and later)

    • Form 1099-R with Distribution Code 3 and/or Disability

    • Form 4137

    • Form 8919

    • Schedule C with a positive entry on line 31

    • Schedule E, Part II with a positive entry on line 32

    • Schedule F with a positive entry on line 34

    • Schedule SE

    • Amount on line 1b, Form 1040 or notation of "HSH"

    • Notation on Schedule 1 line 8z indicating self-employment

    • Medicaid Waiver Payment (MWP), Notice 2014-7, IRC 131, In-Home Health Services (IHHS), In-Home Support Services (IHSS), Difficulty of Care payment

    • Alimony and child support

    • Interest and dividends

    • Non-disability pensions and annuities (e.g., Form 1099-R showing income other than Distribution Code 3)

    • Nontaxable foster care payments

    • Social Security and railroad retirement benefits (including disability benefits)

    • Unemployment compensation (insurance)

    • Veterans' benefits (including VA rehabilitation benefits)

    • Welfare benefits

    • Workers' compensation benefits

    • Schedule E, Part I

    • Wages earned while incarcerated

  6. Edit RPC "B" when there is no significant entry on line 27 and the taxpayer has written:

    1. "No" or "None" in the line 27 area. (See Figure 3.11.3-74.)

    2. "Amish" or "Mennonite" anywhere on the return.

    3. "Exempt Notary" , "Exempt Form 4029" , or "Exempt Form 4361" anywhere on the return.

    4. A clear indication that They do not want or do not qualify for EIC.

      Note:

      A blank is not a "clear indication" . Do not edit RPC "B" solely because the form has zeros or dashes on all unused lines. The zeros or dashes may indicate the lines are not being used, not that the taxpayer does not want or qualify for EIC.

    Exception:

    Do not edit RPC "B" when "EIC" is noted on or to the right of line 27, "888" has been edited to line 27, or if a Schedule EIC with entries is attached.

  7. "X" the amount on line 27 and edit RPC "B" when any of the following are present:

    1. a clear indication that an exemption from SE tax was given on Form 4029 or Form 4361

    2. Form 4029 or Form 4361 is attached

    3. notation of "Exempt/Notary" or "Exempt"

    4. notation of "Amish"

    5. notation of "Mennonite"

    Figure 3.11.3-74

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    Please click here for the text description of the image.

Line 28 - Additional Child Tax Credit (Schedule 8812)
  1. If an amount is claimed on line 28 and there are 3 or more qualifying children, Schedule 8812 must be attached.

    Note:

    For TY18 and later ITINs are not valid on Schedule 8812.

  2. If Schedule 8812 is missing and the condition above applies, correspond.

Line 29 - Refundable American Opportunity Credit or Education Credit (Form 8863)
  1. If an amount is claimed on line 29, Form 8863 must be attached. If missing, correspond for Form 8863.

Line 30 - Reserved
  1. Reserved. See IRM 3.11.3.73.3.1.10 for prior year Recovery Rebate Credit.

Line 31 - Other Payments and Credits
  1. If an amount is claimed on line 31, Schedule 3 must be attached. Correspond for Schedule 3 if missing.

    Exception:

    Do not correspond if line 31 can be determined to be a subtotal or if a Schedule 3 can be dummied from attachments. When dummying Schedules 1-3, use Form 6114-A. Do not dummy, instead correspond when corresponding for other missing information.

  2. Follow instructions below for dummying Schedule 3 Part II:

    If Then
    Form 8962 is attached Dummy the line 26 amount to line 9, Schedule 3.
    Form 4136 is attached Dummy the line 17 amount to line 12, Schedule 3.
    Form 8885 is attached Dummy the line 5 amount to line 14, Schedule 3.

Line 32 - Total Other Payments and Refundable Credits
  1. Compute and edit line 32 when blank, dash, or zero, and there are entries leading to a total.

    Note:

    Do not include "888" when it has been edited on line 27.

Line 33 - Total Payments
  1. When there is an amount on line 33 and lines 25d, 26, and 32 are blank, and no withholding documents (Forms W-2, W-2G or 1099 Series) are attached, take one of the following actions.

    If And Then
    The amount on line 33 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ there is a significant entry on line 1a, 4b or 5b Form 1040 or line 7, Schedule 1, Correspond for an explanation of the amount on line 33. For Form 6001 use box O, for Form 3531 use box 19-20.
    The amount on line 33 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ there are no significant entries on lines 1a, 4b or 5b Form 1040 or line 7, Schedule 1, Edit the amount to line 26.
    The amount on line 33 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ there is a significant entry on line 1a, 4b or 5b Form 1040 or line 7, Schedule 1, Edit the amount to line 25d and edit RPC "G" .
    The amount on line 33 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ there are no significant entries on lines 1a, 4b or 5b Form 1040 or line 7, Schedule 1, Edit the amount to line 26.

  2. Delete any credits identified by the taxpayer on lines 25d through 33 (dotted portion) that do not belong on the current year Form 1040. For example, a credit for a prior year refund not received.

  3. Compute and edit line 33 when it is blank, dash or zero and there are entries present leading to a total.

Refund or Amount Owed - Lines 34 through 38

  1. Line 34 is not a T-line. Lines 35a and 37 are T-Compute lines. Edit lines 35a, 36 and 37 in dollars and cents when adjusting or computing and editing amounts.

Line 35a - Refund
  1. Compute and edit line 35a when lines 34, 36, and 37 are all blank, line 33 is greater than line 24, and any one of the following conditions are present:

    1. Line 24 has an entry.

    2. The taxpayer computed or indicated no tax due on lines 16, or 24.

    3. It can be determined that line 24 would be zero if it were computed.

  2. Do not edit CCC "B" when line 35a has been computed to be a significant amount.

  3. Edit Action Code "341" when the amount on line 35a is:

    1. Less than $1 and the taxpayer submits a written request for a refund.

    2. One million dollars ($1,000,000) or more and within 21 days of the expiration of the 45 day interest free period.

      Note:

      Consider the return within the 21 day time frame if the processing date is more than 20 days after the Received Date or the Return Due Date (whichever is later).

  4. Hand carry fully edited refund returns of $1,000,000 or more to your work leader. The work leader will ensure all correspondence and/or research is addressed and carry the return as a walk through to Numbering, ISRP and ERS to assist in providing subject matter expert support for timeliness. See (3) above for possible editing of Action Code "341" .

Lines 35b, 35c, and 35d - Direct Deposit Information
  1. Edit a checkmark to the left of the direct deposit area when numeric entries are present and neither of lines 35b or 35d are deleted as instructed in (2) below.

    Note:

    The account number may contain alpha-numeric entry.

  2. Take the following actions to perfect lines 35b, 35c, and 35d:

    If Then
    Routing number present
    Account number present
    Neither checking or savings box marked
    Edit a checkmark in the "checking" box (or to the left of the word "checking" if no box is present). (See Figure 3.11.3-75a.)
    Routing number present
    Account number present
    Both checking and savings box marked
    Circle the box that represents "savings" . (See Figure 3.11.3-75b.)
    Routing number present and
    Account number NOT present or
    Routing number NOT present
    Account number present
    Edit an "X" in the first position of the blank line, or if the field is not boxed-in, to the left of the blank line. (See Figure 3.11.3-76a.)
    Routing number blank
    Account number blank
    Both checking and savings boxes blank
    Edit a single "X" over Routing and Account number lines. (See Figure 3.11.3-76b.)
    Routing number blank
    Account number blank
    Checking or savings is present
    Edit an "X" in the first available blank position for both Routing number and Account number lines. (See Figure 3.11.3-76c.)
    Routing number altered and/or
    Account number altered
    or, if either or both have been lined through by another area (e.g., CII, 1040-X)
    Edit an "X" in the first position for both Routing and Account number lines. If either checking or savings box is not already indicated, edit a checkmark in the checking box. (See Figure 3.11.3-76d.)
    Pre-printed X’s are Present in
    Routing number
    Account number
    Routing and Account number are also present
    Edit an "X" in the first position for both Routing and Account number lines. (See Figure 3.11.3-76e.)
    Pre-printed X’s are Present in
    Routing number
    Account number
    Checking and/or savings
    Edit a single "X" over Routing and Account number lines. (See Figure 3.11.3-76f.)
    Pre-printed X’s are Present in
    Routing number
    Account number
    Checking and savings is blank
    Edit a single "X" over Routing and Account number lines. (See Figure 3.11.3-76g.)

    Note:

    If entries other than X are present, such as the dash or asterisk, they will be treated the same as an X.

    Figure 3.11.3-75

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    Figure 3.11.3-76

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Line 36 - ES Credit Elect
  1. When lines 34, 35a, and 36 are the same, see Figure 3.11.3-77 and perfect them as follows:

    If ES payments (Line 26) Then
    Are claimed, "X" the entry on line 35a.
    Are not claimed, "X" the entry on line 36.

    Note:

    An overpayment can be divided between lines 35a (refund) and 36 (ES credit elect).

  2. Edit Action Code "430" to send the return to Rejects in the following circumstances:

    • A statement is present on or near Form 1040 line 26 or line 36, indicating the taxpayer wants the credit applied to their spouse's account.

    • The return is FS 3 or 6 and there is a statement or schedule present showing how estimated payments are to be allocated.

  3. Exclude the additional amount when line 36 includes an amount for any of the following:

    • Late filing penalty

    • Late payment penalty

    • Interest

    Note:

    Do not exclude estimated tax penalty.

    Figure 3.11.3-77

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Line 37- Amount You Owe (Balance Due)
  1. Compute and edit line 37 when it is blank, if lines 34, 35a and 36 are blank and line 24 is greater than line 33.

  2. Do not edit CCC "B" when line 37 has been computed to a significant amount.

Line 38 - Estimated Tax Penalty (Form 2210 or Form 2210-F)
  1. Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts (Sequence Code 06), and Form 2210-F, Underpayment of Estimated Tax by Farmers and Fisherman, (Sequence Code 06A) are not transcribed forms. Delete these forms after editing line 38.

  2. Edit CCC "P" when Form 2210 is attached and any of the following conditions apply:

    1. Tax year is 2018 and Box A in Part II is marked and "80% or 85% Waiver" is noted next to Box A or in the Box A area.

    2. Box A or B in Part II is marked and a statement is attached indicating the reason the taxpayer was unable to meet the estimated tax requirements. Statement must indicate:

      The taxpayer has retired after reaching age 62 or,
      Has become disabled during the tax year or the prior tax year.

      Note:

      If statement is not present, edit CCC “7” and correspond using Letter 369C, open paragraph U using the following verbiage: "We cannot consider your request for a waiver of the estimated tax penalty because the required documentation was not attached to your return. If you receive notice of penalty assessment, you may request a consideration of the assessment by mailing the required documentation along with a copy of your Form 2210, to the address that will be indicated on the notice of assessment."

    3. Any of C-E in Part II, are marked.

    4. There is any indication on Form 2210, or in the line 38 area of Form 1040 of Annualized Income (AI):

    5. Disaster/loss is indicated other than Federally Declared Disaster. (See Exhibit 3.11.3-9.)

      Exception:

      Take no action and do not edit CCC "P" if there is an indication of Federally Declared Disaster on Form 2210, 2210-F or Form 1040.

  3. Edit CCC "P" when Form 2210-F is attached and all the following conditions are met:

    1. Tax Period is 2023/12 and,

    2. Box A (relating to a waiver) Part I, is checked and,

    3. The return was received no later than April 15, 2024 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

  4. Edit CCC "P" when Form 2210-F is attached and all the following conditions are met:

    1. Tax period ended 2023 or 2024 with a month ending other than 12 (i.e., fiscal year return).

    2. Box A in Part I is marked and a statement is attached indicating reason for the waiver. Statement must indicate:
      The taxpayer has retired after reaching age 62 or older or,
      Has become disabled during the tax year or the prior tax year.

    Note:

    If statement is not present, edit CCC “7” and correspond using Letter 369C, open paragraph U using the following verbiage: "We cannot consider your request for a waiver of the estimated tax penalty because the required documentation was not attached to your return. If you receive notice of penalty assessment, you may request a consideration of the assessment by mailing the required documentation along with a copy of your Form 2210, to the address that will be indicated on the notice of assessment."

    Reminder:

    DO NOT edit CCC "P" on a return for TY21 and prior with a Form 2210-F attached.

    Reminder:

    Take no action and do not edit CCC "P" or CCC "7" if there is an indication of Federally Declared Disaster on Form 2210, Form 2210-F or Form 1040.

  5. If line 38 is blank, edit to line 38 any significant amount from:

    • Form 2210, Part III, line 19 (TY20 and prior, Part III, line 17 or Part IV, line 27)

    • Form 2210-F, line 16

  6. When CCC "P" is edited, compare the line 38 entry with the amount on Form 2210, line 19 (Form 2210-F, line 16). Take the following actions when the entry on line 38 is different from the amount on Form 2210 or Form 2210-F after allowing for rounding:

    1. "X" the line 38 entry.

    2. Edit the amount from Form 2210 or Form 2210-F to line 38.

Third Party Designee

  1. (Reserved.)

Signature

  1. An original signature, made by the taxpayer, is required below the jurat (perjury statement) and within the box "Sign Here" area of the return.

    Exception:

    Accept a taxpayer's signature elsewhere on the return, if the taxpayer himself or herself has arrowed their signature to the correct area.

  2. Correspond using Form 3531 to mail back a tax return with a missing or invalid signature to the taxpayer. Mark boxes as required. Be sure to identify and include all other correspondence conditions on Form 3531 when mailing a return back to a taxpayer for a missing, photocopied, or incorrectly placed signature.

    Exception:

    On disaster or numbered returns, correspond for missing signatures using Form 6001/6001-A. Do not send the return back to the taxpayer.

  3. Correspond for an original signature only when you cannot clearly determine whether the present signature is an original signature.

  4. A signature that does not appear under a jurat statement can warrant up to two correspondences to obtain a signature in the proper area. See IRM 3.11.3.5.3.2.

  5. For returns with signatures or an exception listed in paragraphs (7) and (8), continue processing. If correspondence is needed, follow normal correspondence instructions.

  6. Faxed or scanned signatures are acceptable only when they are received from another IRS area.

    1. Accept faxed or scanned signatures from the following areas:
      - Another IRS area (e.g., Substitute for Return (SFR), EEFAX)
      - Returns marked "59X-XX" (excluding "599-18" ) from Collection Operation
      - Correspondence Imaging Inventory (CII) from Accounts Management
      - Returns stamped by RIVO and/or edited with SPC "B" or "M"
      - Taxpayer Advocate Service (TAS)

      Note:

      TAS should refer to IRM 13.1.18.8.3 for specific instructions on accepting faxed signatures and the limited circumstances when it is necessary to fax a return to the IRS.


      - Centralized Offer in Compromise (OIC/COIC)

    2. These returns may have "Process as Original" , "PAO" , "Process as Original - Faxed Return" , or similar statement present at the top of the return and Form 3210 may be present.

    3. If any required information is missing or incomplete, edit CCC "3" . Do not correspond or research on returns that have an acceptable faxed or scanned signature.

  7. Joint returns require the signature of both taxpayers except when a notation indicates the spouse is:

    1. Deceased and taxpayer is filing as the surviving spouse

    2. A "POW-MIA"

    3. Unable to sign the return due to health reasons

    4. In a combat zone/qualified hazardous duty area

    5. Any of the following and a POA is attached: overseas (including military), incapacitated by disease or injury, or received advance permission from IRS.

      Note:

      When using Form 3531 to correspond for this condition, mark Box 1.

  8. Do not correspond for a missing signature when any of the following conditions are present:

    1. "Substitute for Return Prepared by IRS" is noted, a signed Form 1040-X is attached for the same period with an original signature, "See 1040-X" is noted, or "dummy" return

    2. "Section 6020(b)" or "prompt assessment" is noted or Form 4810 is attached

    3. Return is "amended" , "corrected" , "revised" , "tentative" , or "superseding" (See the amended return instructions in IRM 3.11.3.6.2.1.)

    4. Form 8879 is attached with a valid original signature or E-Signature, and there is an indication of rejected electronic filing or prior year.

      Note:

      See Exhibit 3.11.3-1 when Form 8879 is attached.

      Note:

      If Form 8879 is not present and there is only a letter or statement present on the return or an attachment or a 5-digit PIN present in the signature area of the return, correspond for an original signature.

    5. The return is coming from Exam, Collection or Accounts Management and "PAO" or "Process as Original" is present on the return.

    6. An employee's IDRS number is present on the signature line.

    7. Taxpayer signed an attached CP 59 or Letter 143C on the Sign Here line. CSCO will notate in the "sign here" area of the return when the taxpayer signed under the jurat on the CP 59 or Letter 143C.

    8. Form 15103 with a valid signature is attached. If FS2, each taxpayer missing a signature on the return must have a valid signature on Form 15103.

    9. Automated Substitute for Return "ASFR" is notated in the top margin, a pink Form 3531 is attached, or Letter 2566 (SC/CG) or Letter 3219 (SC/CG) is attached. Returns meeting this criteria will be pulled from the batch and routed to ASFR. See IRM 3.11.3.6.2.19.1.

    10. There is an indication of TRPRT (transcript of a return).

    11. Computer Condition Code (CCC) "3" is already present on the return.

    12. Correspondence Imaging Inventory (CII) return.

    13. Paper-printed MeF returns that are sent from TAS.

    14. Efile Graphic Print (Includes when the notation is circled out or lined through.)

    15. Centralized Office in Compromise, "OIC" or "COIC" is present on the return.

  9. Correspond for the signatures of two witnesses, if not present, when the taxpayer signs the return with a mark such as an "X" . Use Form 3531 to correspond for this condition, mark Box 1.

  10. Treat the return as unsigned and correspond for the missing, legal signature(s) if the return has no jurat or the jurat is incomplete. Use Form 3531, Box 2.

  11. When the jurat on a return has been altered or deleted treat it as a Frivolous Filing.

    1. For unnumbered returns, prepare Form 4227 and route the return to Examination.

    2. For numbered returns, edit Action Code "331" .

    Note:

    Refer to the information on frivolous filer/non-filer returns in the special situations subsection of IRM 3.11.3.6.1.6 for more instructions when the taxpayer deleted or altered the jurat.

  12. If the taxpayer used a thumbprint instead of a signature, route to the Frivolous Filing Program (FRP), unless already seen by Frivolous and then process the return as an original and do not correspond for signature.

  13. If the taxpayer is a minor child and the return is signed by an individual other than the taxpayer:

    1. A minor child's return signed by their parent never requires documentary evidence.

    2. A minor child's return signed by their guardian or other fiduciary representative requires documentary evidence ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (See IRM 3.11.3.11 for a list of fiduciary designees.)

    3. All other relationships always require documentary evidence.

      Note:

      If using Form 3531 to correspond for this condition, mark Box 1.

    Note:

    Additional special editing procedures are required on a minor taxpayer's return. Refer to the special editing instructions in IRM 3.11.3.11.2 for more information.

  14. If the return is signed by any of the following:

    1. An incompetent taxpayer's return signed by a parent or spouse never requires documentary evidence.

    2. A taxpayer's return signed by an attorney, CPA, or a representative of a bank or other fiduciary institution, to include credit unions, pension funds, etc., never requires documentary evidence.

    3. All other relationships always require documentary evidence. Correspond if missing (Court papers are acceptable as documentary evidence).

      Note:

      If using Form 3531 to correspond for this condition, mark Box 1.

    Exception:

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

    Note:

    Additional special editing procedures are required on a return with a fiduciary relationship. Refer to the special editing instructions in IRM 3.11.3.11 for more information.

  15. Refer to the decedent return instructions in IRM 3.11.3.10 when the taxpayer is deceased. Additional editing is always required on a decedent return. If a signature is missing on a decedent return, mark box 27 on a Form 3531.

  16. If a joint return is missing the spouse's signature and there is an indication the spouse refused to sign, correspond for the missing signature or correct filing status. Correspond using Form 3531 and fill-in 24, per Exhibit 3.11.3-18.

Occupation

  1. Reserved.

Identity Protection Personal Identification Number (IP PIN)

  1. Identity Protection Personal Identification Number (IP PIN) is located in the "Sign Here" area of the return.

  2. There may be an IP PIN for both primary and secondary taxpayer, do not circle out. If FS 2 and both spouses have an IP-PIN, edit both as necessary.

  3. If it is more or less than 6 numeric digits, circle the IP PIN.

  4. If CP 01A is attached and the IP PIN box is blank, verify the taxpayer name(s) matches the name(s) on CP 01A and the tax return. If the name(s) match, edit the IP-PIN in the designated boxes.

  5. If the name(s) do not match between an attached CP 01A and the tax return, see Exhibit 3.11.3-1, Attachment Guide.

Paid Preparer Data

  1. Preparer data is located below the taxpayer signature area.

  2. If information is present in the Paid Preparer Data area Form 8948 should be present with the return. Edit the E-File Waiver Indicator in the bottom right margin to the right of the Identity Protection PIN on Form 1040 returns or TY17 and prior Form 1040A (TY17 and prior Form 1040EZ), to the right of the daytime phone number. Edit the E-File Waiver indicator as follows:

    If the box marked on Form 8948 is: Then
    Box 1 Edit E-File Waiver Indicator "1" . (See Figure 3.11.3-78.)
    Box 2 Edit E-File Waiver Indicator "2" .
    Box 3 Edit E-File Waiver Indicator "3" .
    Box 4 Edit E-File Waiver Indicator "4" .
    Box 5 Edit E-File Waiver Indicator "5" .
    Boxes 6a - 6c Edit E-File Waiver Indicator "6" .
    More than one box is marked, Edit the E-File Waiver Indicator according to the following priority:
    Boxes 6a - 6c
    Box 3
    Box 2
    Box 1
    Box 4
    Box 5
    No box is marked but there is a notation near a box, Follow taxpayer’s intent.

    Figure 3.11.3-78

    This is an Image: 33440078.gif

    Please click here for the text description of the image.

Preparer Code
  1. The Preparer Code is edited in the margin to the right of the Paid Preparer Use Only area.

  2. Edit the Preparer Code as follows:

    1. Edit "P" if there is an indication the return was prepared by the IRS. (e.g., "IRS Prepared" , "Prepared but not audited" , Dummy return, prepared by IRS, and "IRS Prepared but not audited" .)

    2. Edit "R" if there is an indication the return was reviewed by the IRS.

      Exception:

      The presence of a PTIN negates the requirement for the editing of a Preparer's Code. See IRM 3.11.3.14.8.2.

Preparer TIN (PTIN)
  1. Edit the Preparer's PTIN by taking the following actions:

    If Then
    Blank with a single PTIN in the Paid Preparer area, Take no action.
    Blank with no PTIN in the Paid Preparer area, Perfect from attachments if possible.
    Illegible or incomplete, Perfect from attachments if possible. If unable to perfect, delete.
    Both an SSN and a PTIN are present in the Paid Preparer area, Delete the SSN.
    Multiple PTINs are present in the Paid Preparer area, Delete all but the first PTIN.
    Only an SSN or multiple SSNs are present in the Paid Preparer area, Take no action.

    Note:

    PTINs are identified by the alpha character "P" or "S" followed by 8 numerics. The presence of a PTIN negates the requirement for the editing of a Preparer's Code.

  2. Edit the EIN by taking the following actions:

    If Then
    Blank with an EIN in the Paid Preparer area, Take no action.
    Blank with no EIN in the Paid Preparer area, Perfect from attachments if possible.
    Illegible or incomplete, Perfect from attachments if possible. If unable to perfect, delete the EIN.
    Multiple EINs are present, Delete all but the first entry.

    Note:

    Employer Identification Number (EIN) is a 9-digit number in the following format, XX-XXXXXXX.

Preparer Phone Number
  1. Delete any incomplete, invalid (e.g., all 9's or all 0's), or illegible phone number.

    Note:

    A complete domestic phone number consists of 10 digits.

Schedule 1 - Additional Income and Adjustments to Income

  1. The instructions in this subsection of the manual are for editing Schedule 1.

  2. Edit Sequence Number "01" in the upper-right margin of Schedule 1 if not preprinted.

  3. If only Schedule 1, page 2 is attached, with T-lines present or edited, edit Sequence Number "01" in the upper-right margin of Schedule 1, page 2.

  4. The following are the T-lines and T-Compute lines on Schedule 1:

    T-Lines T-Compute Lines
    • Line 1

    • Line 2a

    • Lines 3 through 7

    • Line 8r

    • Line 9

    • Lines 11 through 18

    • Lines 19a and 19b

    • Lines 20 and 21

    • Line 23

    • Line 25

    • 982 Indicator (dotted area left of Line 11)

    • Line 9

    • Line 25

  5. Lines 1 through 10 are for additional income and lines 11 through 26 are for adjustments to income.

  6. "X" Schedule 1 if there are no significant T-line entries present or edited on Schedule 1.

    Exception:

    Do not delete if the 982 Indicator is/should be edited.

  7. Only one Schedule 1 can be processed. If more than one is attached, combine related T-line amounts onto one schedule and "X" those schedules not used.

Schedule 1 Line 1 - Taxable Refunds

  1. (Reserved)

Schedule 1 Lines 2a and 2b - Alimony Received and Date of Divorce

  1. Edit SPC "4" when there is an amount entered on Schedule 1 line 2a and the date entered on line 2b is later than 12/31/2018.

  2. When an amount is present on line 2a and the date is missing on line 2b, correspond for the missing date. When using Form 3531, mark Box 18 and when using Form 6001, use paragraph P.

  3. Take no action when the word "received" is crossed out and the word "recaptured" has been added in its place.

Schedule 1 Line 3 - Business Income or Loss

  1. If an amount is present on Schedule 1, line 3 and Schedule C is not attached:

    If And Then
    A document from which a Schedule C can be dummied is attached,   Dummy a Schedule C.
    1. Edit the income to lines 1 and 3.

    2. Edit the expenses to line 28.

    3. Edit other T-lines as necessary.

    Note:

    See Exception below.

    There are no documents attached from which a Schedule C can be dummied. the amount on line 3 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Dummy a Schedule C.
    1. Edit a positive amount to lines 1 and 3.

    2. Edit a negative amount to line 28.

    Note:

    See Exception below.

    There are no documents attached from which a Schedule C can be dummied. the amount on line 3 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Correspond for the missing Schedule C. Note: If Schedule SE is not attached or reported, also correspond for SE tax liability when the amount on line 3 is $434 or more. For Form 6001, use box V. For Form 3531, check box 16.

    Exception:

    Do not dummy Schedule C if corresponding for other missing return items. Instead, include the request for Schedule C in the correspondence to the taxpayer.

Schedule 1 Line 4 - Other Gains or Losses

  1. If an amount is present on Schedule 1 line 4 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 4797, Form 4684, or a statement must be attached. If missing, correspond for Form 4797.

    Exception:

    Correspond for Form 4684 instead of Form 4797, if the taxpayer notated "Form 4684" .

    Note:

    Do not"X" line 4 when the taxpayer has notated "Form 4684" .

Schedule 1 Line 5- Rents, Royalties, Partnerships, Estates, Trusts, or S Corporations

  1. If an amount is present on Schedule 1 line 5 and Schedule E is not attached, but Form 4835 is attached, "dummy" a Schedule E as follows:

    If Form 4835, Then
    Line 32, is a positive amount, Edit that amount to line 40 on Schedule E.
    Line 34c, is a negative amount, Edit that amount to line 40 on Schedule E. (See note below)
    Line 34c, is blank, Edit the loss from line 32 on Form 4835 to line 40 on Schedule E.(See note below)
    Line 7, is a positive amount, Edit that amount to line 42 on Schedule E.

    Note:

    If a taxpayer notates PAL, do not move the negative amount to line 40 on Schedule E.

  2. If an amount is present on Schedule 1 line 5, but neither Schedule E nor Form 4835 is attached, dummy a Schedule E (if possible) using supporting statements and the table below:

    If there is a clear indication the income is from: Edit a positive amount to: OR Edit a negative amount to:
    Rents or royalties, Line 24, Schedule E. Line 25, Schedule E.
    A partnership or S-Corporation, Line 30, Schedule E. Line 31, Schedule E.
    An Estate or Trust, Line 35, Schedule E. Line 36, Schedule E.

    Note:

    Supporting statements include Schedule K-1, Form 1065, Form 4835, Form 1099-MISC, or source of income indicated on Schedule 1 line 5.

  3. If no supporting documents are attached to a Schedule E and the amount on Schedule 1 line 5 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, dummy a required Schedule E by editing a positive amount to line 24 or a negative amount on line 25 Schedule E.

    Exception:

    Do not dummy a Schedule E if corresponding for other missing return items. Instead, include the request for Schedule E in the correspondence to the taxpayer.

  4. Correspond for the missing Schedule E when the amount on Schedule 1 line 5 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and a dummy Schedule E cannot be prepared from attachments.

    Note:

    Correspond for Schedule E, if an attached Schedule E is blank.

Schedule 1 Line 6 - Farm Income or Loss

  1. If an amount is present on Schedule 1 line 6 and Schedule F is not attached:

    If And Then
    A document from which a Schedule F can be dummied is attached,   Dummy a Schedule F.
    1. Edit the income to line 9 (bracket if negative).

    2. Edit the expenses to line 33.

    3. Edit other T-lines as necessary.

    Note:

    See Exception below.

    There are no documents attached from which a Schedule F can be dummied. the amount on Schedule 1 line 6 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Dummy a Schedule F.
    1. Edit a positive amount to line 9 Schedule F.

    2. Edit a negative amount to line 33 Schedule F.

    Note:

    See Exception below.

    There are no documents attached from which a Schedule F can be dummied. the amount on Schedule 1 line 6 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Correspond for the missing Schedule F. Note: If Schedule SE is not attached or reported, also correspond for SE tax liability when the amount on Schedule 1 line 6 is $434 or more. For Form 6001, use box V. For Form 3531, check box 16.

    Exception:

    Do not dummy Schedule F if corresponding for other missing return items. Instead, include the request for Schedule F in the correspondence to the taxpayer.

Schedule 1 Line 7 - Unemployment Compensation (UEC)

  1. If Form 1099-G is attached, perfect Schedule 1 line 7 when it is blank or amount differs from the gross amount of Unemployment Compensation (UEC) on Form 1099-G.

    Note:

    For TY20, take no action when the amount entered by the taxpayer differs from the gross amount of UEC on Form 1099-G.

  2. Delete any amount identified as supplemental benefits received from a company-financed supplemental unemployment benefits (SUB) fund. Include the amount of SUB pay on line 1 Form 1040.

  3. Take no action when a statement is present indicating an adjustment to unemployment compensation was made such as "repaid" , "pay back" or "repayment."

Schedule 1 Lines 8a through 8z - Other Income

  1. The taxpayer may include a variety of income types on Schedule 1 lines 8a - 8z. Instructions for the following types of income are included in this subsection of the manual:

    • Self-Employment Income

    • Gambling

    • Nontaxable Income

    • Scholarships, Grants, Stipends and Fellowships not reported on Form W-2

  2. Take no action for entries on lines 8a - 8z unless specifically instructed in (3) below.

  3. Use the table below for editing based on taxpayer entries on Schedule 1 lines 8a - 8z:

    Entered by Taxpayer on Schedule 1 Lines 8a through 8z Action
    Alaska Permanent Fund (APFD) or a similar statement Edit RPC "G" if withholding is present on line 25a-25d.
    Dependent Care Benefits (DCB) Move to line 1z Form 1040.
    Disability Pension Move Disability Pension to line 1z Form 1040 if Form 1099-R, box 7, has Distribution Code 3.
    Form 2555 (Indication of Foreign Income Exclusion) or Form 2555-EZ (TY18 and prior) - Line 8d Treat as an international return. (See IRM 3.11.3.6.2.13 and paragraph (8) below.)
    Gambling, Gross (losses not subtracted) If Schedule A is attached, see IRM 3.11.3.18.1.
    Gambling, Net (winnings minus losses) See IRM 3.11.3.15.8(6).
    Indian Gaming Proceeds (IGP), Indian Tribal Distribution, Indian Tribal Earnings, Native American, or similar statement Edit RPC "G" if withholding is present on line 25a-25d Form 1040.
    Non-Employee Compensation If amount is $434 or more (with or without Form 1099-NEC), and Schedule SE is not attached or reported, also edit RPC "N" .

    Note:

    Do not edit RPC "N" if Self-Employment and non - self-employment cannot be broken down.

    Nontaxable Income
    See IRM 3.11.3.15.8(7) for a complete list.
    Adjust Schedule 1 line 9 to exclude nontaxable amount.
    Restitution of The Holocaust, Nazi Regime, or a similar statement "X" Schedule 1 line 9.
    Section 965/965(a) If an amount is present, edit RPC "F" ; Form 965-A must be attached. However, if missing, correspond only if corresponding for other missing information.
    Self-employment types of income See IRM 3.11.3.15.8(4).
    Unemployment Compensation Exclusion (UCE) Take no action. (TY20 only)
    U.S. Treasury Rebate, Federal Tax Refund, Rate Reduction Rebate, or a similar statement "X" Schedule 1, line 9.

  4. If self-employment income is present on Schedule 1 line 8z, take the following actions:

    1. If the amount is $434 or more and Schedule SE is not attached or reported and cannot be dummied, edit RPC "N" . (See Figure 3.11.3-79.)

    2. If Form 1099-NEC is present with or without a notation on Schedule 1 line 8z and an amount is present in box 1, Form 1099-NEC, edit RPC "N" unless the amount is less than $434 or Schedule SE is present. On prior year returns, amount may be found on Form 1099-MISC, box 7.

      Note:

      Do not edit RPC "N" if any of the following conditions exist:
      - DSI return and taxpayer notes: wages from parent or newspaper route.
      - Self-Employment and non self-employment cannot be broken down. (See Figure 3.11.3-80.)
      - Taxpayer reported self-employment income on Schedule 1 line 8z and included the amount on Form 8919.

    Figure 3.11.3-79

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    Please click here for the text description of the image.

    Figure 3.11.3-80

    This is an Image: 33440080.gif

    Please click here for the text description of the image.

  5. Edit an amount from Form 1099-NEC (PY Form 1099-MISC), to Schedule 1 line 9 only when there is a clear indication the amount was not included on the return. Do not include the Form 1099-NEC (PY Form 1099-MISC), amount on Schedule 1 line 9 when any of the following are attached by the taxpayer:

    • Schedule C

    • Schedule E (Part II)

    • Schedule F

    • Form 2106

  6. Use the following table to determine the correct action when the taxpayer includes gambling amounts on Schedule 1 line 8b:

    If the taxpayer includes And Then
    Gross winnings (does not subtract losses), Schedule A is attached, Refer to the Schedule A editing instructions in IRM 3.11.3.18.1.
    Net winnings (subtracts losses from winnings), There is an indication the taxpayer is a professional gambler,
    1. Delete amount from Schedule 1 line 9.

    2. Include amount on Schedule 1 line 3.

    3. Correspond for Schedule C.

    Note:

    Also correspond for Schedule SE when the amount on Schedule 1 line 3 is $434 or more. If using Form 6001, check paragraph V. If using Form 3531, check box 16.

    Net winnings, The netted amount is not zero, "X" Schedule 1 line 9.
    Net winnings to zero, The gross amount is on the dotted portion of Schedule 1 line 8b, Edit the gross amount to Schedule 1 line 9.
    Net winnings to zero and the gross amount is not on the dotted portion of Schedule 1 line 8b, Form W-2G is not attached, Correspond for the gross winnings amount
    with Form 3531/6001, using fill-in 7, per Exhibit 3.11.3-18.
    Net winnings to zero and the gross amount is not on the dotted portion of Schedule 1 line 8b, Form W-2G is attached, Edit CCC "Y" and an Action Trail. (See Figure 3.11.3-81.)

    Figure 3.11.3-81

    This is an Image: 33440081.gif

    Please click here for the text description of the image.

  7. Adjust Schedule 1 line 9 to exclude nontaxable income. Nontaxable income includes:

    • Accident and health insurance proceeds

    • "Black lung" benefits

    • Casualty insurance and other reimbursements

    • Child support

    • Damages awarded for physical injury or sickness

    • Federal Employees' Compensation Act (FECA) payments

    • Interest on state or local government obligations

    • Public aid

    • Supplemental Security Income (SSI)/SSI Disability

    • Tax-Sheltered Annuities

    • Temporary Assistance for Needy Families (TANF)

    • VA Benefits/Payments

    • Worker's compensation

  8. Refer to the international return instructions in IRM 3.11.3.6.2.13 if foreign income has been excluded on Schedule 1 line 8d or if "Form 2555" , "Form 2555-EZ" (TY18 and prior), or an indication of "treaty" or "treaty article" is present on Schedule 1 line 8z.

  9. Foreign income (usually reported on line 1 Form 1040 or line 8z Schedule 1) does not automatically indicate an international return. Do not route returns to Austin, unless one of the forms/conditions at IRM 3.11.3.6.2.13(1) is present or if the taxpayer excludes income. (See Figure 3.11.3-82.)

    Figure 3.11.3-82

    This is an Image: 33440082.gif

    Please click here for the text description of the image.

  10. When wages earned while incarcerated are present or edited on line 8u, edit SPC "J" .

Schedule 1 Line 9 - Total Other Income

  1. If line 9 is blank, dash, or zero, and there are entries on any of lines 8a - 8z, compute by adding lines 8a - 8z and edit the amount to line 9.

  2. Delete an amount on line 9 if it appears the taxpayer used it as a subtotal line for Schedule 1 lines 1-7.

Schedule 1 Line 11, Dotted Portion - Form 982 Indicator

  1. When Form 982 is attached edit the Form 982 Indicator "1" on the dotted portion of line 11.

Schedule 1 Line 11 - Educator Expenses

  1. (Reserved)

Schedule 1 Line 12 - Certain Business Expenses of Reservists, Performing Artists, and Fee Basis Government Officials (Form 2106)

  1. If an amount is present on Schedule 1 line 12 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 2106 must be attached. If missing, correspond for Form 2106.

  2. Edit FPC "P" when Form 2106 is attached.

Schedule 1 Line 13 - Health Savings Account Deduction (Form 8889)

  1. If an amount is present on Schedule 1 line 13, Form 8889 must be attached. If missing, correspond for Form 8889.

Schedule 1 Line 14 - Moving Expenses for Members of the Armed Forces (Form 3903)

  1. If an amount is present on Schedule 1 line 14 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 3903 (or a similar statement) must be attached. If missing, correspond for Form 3903.

Schedule 1 Line 15 - Deductible Part of Self-Employment Tax

  1. (Reserved)

Schedule 1 Line 16 - Self-Employed SEP, SIMPLE, and Qualified Plans

  1. "X" the amount on Schedule 1 line 16 if none of the following are attached to the return:

    • Schedule C

    • Schedule E (Part II present)

    • Schedule F

Schedule 1 Line 17 - Self-Employed Health Insurance Deduction

  1. Edit a misplaced amount from Schedule 1 line 17 to line 15 when both of the following conditions are present:

    • Schedule SE is attached to the return.

    • Line 15 is blank.

Schedule 1 Line 18 - Penalty on Early Withdrawal of Savings

  1. (Reserved)

Schedule 1 Line 19a, 19b and 19c - Alimony Paid, Alimony Recipient's TIN and Date of Divorce

  1. Take the following actions when any amount is present on Schedule 1 line 19a:

    If And Then
    A valid recipient TIN is present Is not the primary or secondary TIN Take no action.
    The taxpayer indicates:
    • "unable to obtain"

    • "NRA"

    • "SSA-205(c)"

    • "Unknown"

    • "Applied for" or

    • "None"

      Circle the notation
    The recipient TIN is any of the following:
    • illegible

    • same as the P-TIN or S-TIN or

    • Has fewer or more than 9 digits

    • is made up of repeating digits, such as 111-11- 1111, 111-22-3333 or 888-77-6666

    • Is a sequential series such as 123-45-6789, 098-76-5432, or 456-78-9012

      Circle the TIN
    Multiple TINs are present, at least one TIN is valid Circle all but the first valid TIN

  2. If Schedule 1 line 19a is zero or blank and the recipient TIN is present on Schedule 1 line 19b, and the sum of deductions from Schedule 1 line 11 through line 25 is equal to the amount on Schedule 1 line 26, circle the recipient TIN.

  3. Edit SPC "4" when there is an amount entered on Schedule 1 line 19a and the date entered on line 19c is later than 12/31/2018.

  4. When an amount is present on line 19a and the date is missing on line 19c, correspond for the missing date. When using Form 3531, mark Box 18 and when using Form 6001, use paragraph P.

Schedule 1 Line 20 - IRA Deduction

  1. "X" the Schedule 1 line 20 amount when the taxpayer writes "rollover" to the left of line 20. Delete the rollover amount if included as income on line 4a Form 1040.

  2. "X" the amount on Schedule 1 line 20 when it is other than $6,500 or $7,500 ($13,000, $14,000, or $15,000 for FS 2), and one of the following indicators and an equal deferred compensation amount appear on Form W-2. (See Figure 3.11.3-83.)

    • "D" or Section 401(k)

    • "E" or Section 403(b)

    • "F" or Section 408(k)(6)

    • "G" or Section 457(b)

    • "Q" or "Housing/Subsistence" or "Combat Pay"

    • "S" or "SIMPLE" plan

    • "T" or employer-paid "qualified adoption expenses"

    • Section 125, Cafeteria Plan (CAF)

    • Section 414(h), Mandatory Salary Deferral ("PERS" Public Employees Retirement System)

    • Thrift Savings Plan or "TSP"

    Figure 3.11.3-83

    This is an Image: 33440083.gif

    Please click here for the text description of the image.

Schedule 1 Line 21 - Student Loan Interest Deduction

  1. (Reserved)

Schedule 1 Line 22 - Reserved

  1. (Reserved)

Schedule 1 Line 23 - Archer MSA Deduction

  1. When found elsewhere on the return, delete any amount identified as "MSA" or "Archer MSA Deduction" . Edit the amount in dollars only to Schedule 1 line 23

Schedule 1 Lines 24a through Line 24z - Other Adjustments (Not Transcribed)

  1. Delete the following adjustments from Schedule 1 lines 11 through 23 and edit the amount to Schedule 1 line 25.

    • "403(b)" - Contributions by certain chaplains to section 403(b) plans

    • "501(c)(18)(D)"

    • "ED67(e)" (TY18 and later)

    • "UDC" - Legal fees for Unlawful Discrimination Claims

    • "WBF" - Whistle Blower Fees

    • "Jury Pay" - Jury Duty Pay

    • "USOC" - deduction for Olympic and Paralympic medals and prize money

    • "PPR" - Personal Property Rental

    • "Reforestation," "RFST" - Forestation/reforestation amortization

    • "Sub-Pay TRA" - Repayment of Supplemental Unemployment Benefit (SUB) payments received in a prior year under the Trade Act of 1974 (TRA)

      Exception:

      "X" the SUB pay amount where found and subtract the amount from line 1 Form 1040 when there is no indication the adjustment is for benefits received in a prior year.

    • "DPAD" - Domestic Production Activity Deduction

  2. Delete these adjustments where found and edit the amount to Schedule 1 line 25 when any of the adjustments in (1) are claimed elsewhere on the return.

  3. If there is an entry on line 24j, follow instruction in IRM 3.11.3.6.2.13 to route as an international return.

  4. "X" the amount on line 25 if a taxpayer claims an adjustment to income on Schedule 1 line 24z for anything other than the items listed in (1) above.

  5. "X" the amount on line 25 when there is no explanation present for an adjustment amount on line 24z.

Schedule 1 Line 25 - Total Other Adjustments

  1. If line 25 is blank and there are entries on any of lines 24a - 24z, compute by adding lines 24a - 24z and edit the amount to line 25.

Schedule 1 Line 26 - Total Adjustment to Income

  1. When an amount is present on line 26 and lines 11 through line 25 are blank, perfect in the following priority:

    1. If Schedule 1 line 26 is one-half of the amount on Schedule 2 line 4, edit the line 26 amount on Schedule 1 line 15 as an SE tax deduction.

    2. Perfect Schedule 1 lines 11 through 25 from attachments, if available.

    3. If the amount on Schedule 1 line 26 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and you are unable to perfect lines 11 through line 25 using the steps above and no explanation is present, correspond for an explanation of line 26 amount. For Form 6001, check box O. For Form 3531, check box 19-20.

Schedule 2 - Additional Taxes

  1. The instructions in this subsection of the manual are for editing Schedule 2.

  2. Edit Sequence Number "02" in the upper-right margin of Schedule 2 if not preprinted.

  3. If only Schedule 2, page 2 is attached, with T-lines present or edited, edit Sequence Number "02" in the upper-right margin of Schedule 2, page 2.

  4. The following are the T-Lines and T-Compute Lines on Schedule 2:

    T-Lines T-Compute Lines
    • Lines 1-2

    • Line 4

    • Lines 7-16

    • Line 18

    • Line 19 (TY 21 only)

    • Line 20

    • Line 7

    • Line 18

  5. Lines 1 through 3 are for tax and lines 4 through 21 are for other taxes.

  6. Only one Schedule 2 can be processed. If more than one is attached, combine related T-line amounts onto one schedule and delete those schedules not used.

  7. "X" Schedule 2 if there are no significant T-line entries present or edited on Schedule 2.

    Exception:

    Do not "X" Schedule 2 if Schedule 3 is attached and has significant T-line entries present or edited.

Schedule 2 Line 1 - Alternative Minimum Tax (Form 6251)

  1. If an amount is present on Schedule 2 line 1, Form 6251 must be attached. If missing, correspond for Form 6251.

    Reminder:

    Edit FPC "5" when Form 6251 is attached.

Schedule 2 Line 2 - Excess Advance Premium Tax Credit Repayment (Form 8962)

  1. If an amount is present on Schedule 2 line 2, Form 8962 must be attached. If missing, correspond for Form 8962.

  2. If using Form 6001 to correspond for missing Form 8962, also:

    1. Request Form 1095–A, if not attached, using paragraph (d).

    2. Edit Action Code "224" .

  3. If using Form 3531 to correspond for missing Form 8962, include fill-in 31 if Form 1095-A is not attached, per Exhibit 3.11.3-18.

Schedule 2 Line 3 - Total

  1. (Reserved)

Schedule 2 Line 4 - Self-Employment Tax (Schedule SE)

  1. If an amount is present on line 4, Schedule SE is required. If not attached, dummy Schedule SE from Schedule C, Schedule E (Part II present), or Schedule F, or attachments, if possible. Otherwise, correspond. When corresponding use paragraph W, Form 6001.

    Exception:

    Do not dummy Schedule SE if corresponding for other missing attachments. Instead, include the request for Schedule SE in the correspondence to the taxpayer.

  2. Edit RPC "S" and RPC "B" when there is no significant entry present or edited on line 4 and there is an indication of any of the following:

    1. The taxpayer is not liable for SE tax.

    2. Form 4361 or Form 4029 is noted.

    3. "Exempt" , "Exempt-Notary," "Amish," or "Mennonite" is noted in the line 4 area.

    Exception:

    Do not edit RPC "S" if FS 2 and the spouse has self-employment income of $434 or more and is liable for SE tax.

Schedule 2 Line 7 - Total Additional Social Security and Medicare Tax (Form 4137 or Form 8919)

  1. If an amount is present on line 7, Form 4137 or Form 8919 must be attached. If Form 4137 or Form 8919 is missing, take the following actions:

    If Then
    Attachments are present, Dummy Form 4137 or Form 8919.
    "Uncollected SST/Medicare" is noted or the line 6 amount matches one or any combination of amounts with indicators "A" , "B" , "M" and/or "N" on attached Forms W-2,
    1. "X" the line 7 amount.

    2. Edit the amount to line 13.

    Amount is present on line 5, Correspond for Form 4137. For Form 6001, use paragraph W.
    Amount is present on line 6 Correspond for Form 8919. For Form 6001, use paragraph W.
    Amount is present on line 7 and lines 5-6 are blank. Correspond for explanation of entry. For Form 6001, check box O. For Form 3531, check box 19-20.

  2. If line 7 is blank, dash, or zero and there are any entries on lines 5 or 6, compute and edit line 7 by adding line 5 and line 6.

Schedule 2 Line 8 - Additional Tax on IRAs, Other Qualified Retirement Plans, and Other Tax Favored Accounts (Form 5329)

  1. If an amount is present on line 8, Form 5329 must be attached. If missing, correspond for Form 5329, if corresponding with Form 6001, use paragraph W, unless any of the following conditions apply:

    1. The taxpayer has checked the box to the left of line 8.

    2. The taxpayer noted "No" to the left of line 8.

    3. Line 8 has an entry that is 10% of any combination of the following:

    • Line 4b, Form 1040

    • Line 5b, Form 1040

    • Form 1099-R

    Example:

    Do not correspond if line 4b Form 1040 has an amount of $9,805 and the line 8 amount is $980 or $981.

  2. Edit RPC "3" if Form 5329 is not present and any of the conditions above apply.

  3. Edit the totals of Parts I through IX of Form(s) 5329 when line 8 is blank and Form 5329 is attached with entries present.

Schedule 2 Line 9 - Household Employment Taxes from Schedule H

  1. If an amount is present on line 9, Schedule H must be attached. If missing, correspond for Schedule H.

Schedule 2 Line 11 - Additional Medicare Tax - (Form 8959)

  1. When an amount is present on line 11, Form 8959 must be attached. If missing, correspond for Form 8959.

Schedule 2 Line 12 - Net Investment Income Tax - (Form 8960)

  1. When an amount is present on line 12, Form 8960 must be attached. If missing, correspond for Form 8960.

Schedule 2 Line 13 - Uncollected Social Security and Medicare or RRTA Tax on Tips

  1. UT/UTOT or COBRA is reported on Schedule 2, line 13. If found elsewhere on the return, delete where found and edit to line 13 or renumber to be line 13 as appropriate.

Schedule 2 Line 16 - Recapture Low-Interest Housing Credit (Form 8611)

  1. If an amount is present on line 16, Form 8611 must be attached. If Form 8611 is missing and the amount on line 16 is ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond for Form 8611.

Schedule 2 Lines 17a through 17z - Other Additional Taxes (Not Transcribed)

  1. Use the following information for editing other additional taxes.

Schedule 2 Line 17c - Additional Tax on HSA Distributions (Form 8889)
  1. If an amount is present on line 17c, Form 8889 must be attached. If Form 8889 is missing and the amount on line 17c is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond for Form 8889.

Schedule 2 Line 17d - Additional Tax on HSA Distributions, Not Eligible (Form 8889)
  1. If an amount is present on line 17d, Form 8889 must be attached. If Form 8889 is missing and the amount on line 17d is ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond for Form 8889.

Schedule 2 Line 17e - Archer MSA Distributions (Form 8853)
  1. If an amount is present on line 17e, Form 8853 must be attached. If Form 8853 is missing, correspond for Form 8853.

Schedule 2 Line 17f - Medicare Advantage MSA Distributions (Form 8853)
  1. If an amount is present on line 17f, Form 8853 must be attached. If Form 8853 is missing, correspond for Form 8853.

Schedule 2 Line 17z - Other Taxes
  1. If the taxpayer has written "Section 1291 Interest" , "1291INT" , "Section 1294 Interest" , or "1294INT" , with an amount:

    1. In the line 17z area, and included the amount in the total on line 18, take no action.

    2. Anywhere else on the return and you can determine the amount is not included on line 17z, add the amount to line 18.

Schedule 2 Line 18 - Total Additional Taxes

  1. If line 18 is blank, dash or zero and there are entries on any lines 17a through 17z, compute by adding lines 17a through 17z and edit the total amount to line 18.

Schedule 2 Line 19 - Reserved

  1. Reserved. For TY21 see IRM 3.11.3.73.3.3.4.

Schedule 2 Line 20 - Section 965 Net Tax Liability Installment (Form 965-A)

  1. If an amount is present on line 20, edit RPC "F" .

  2. If an amount is present on line 20, Form 965-A must be attached. However, if missing, correspond for Form 965-A only if corresponding for other missing information.

    Note:

    If Form 965-A is attached and there is no entry on line 20, do not edit RPC "F" .

Schedule 2 Line 21 - Total Other Taxes

  1. (Reserved)

Schedule 3 - Additional Credits and Payments

  1. The instructions in this subsection of the manual are for editing Schedule 3.

  2. Edit Sequence Number "03" in the upper-right margin of Schedule 3 if not preprinted.

  3. If only Schedule 3, page 2 is attached, with T-lines present or edited, edit Sequence Number "03" in the upper-right margin of Schedule 3, page 2.

  4. The following lines are T-Lines and T-Compute Lines on the Schedule 3:

    T-Lines T-Compute Lines
    • Lines 1 through 4

    • Lines 5a - 5b

    • Lines 6a through 6d

    • Line 6e (TY21-TY22 only)

    • Lines 6f - 6g

    • Lines 6h through 6l (first line with an amount present)

    • Line 6m

    • Line 7

    • Lines 9 through 12

    • Line 12b (TY20 SFL)

    • Line 13a

    • Line 13b (TY23)

    • Line 13b (TY21-TY22 SFL)

    • Line 13h (TY21-TY22 SL2)

    • Line 13g (TY21 only)

    • Line 14

    • Line 7

    • Line 14

  5. Lines 1 through 8 are for non-refundable credits and lines 9 through 15 are for other payments and refundable credits.

  6. "X" Schedule 3 if there are no significant T-line entries present or edited on Schedule 3.

  7. Only one Schedule 3 can be processed. If more than one is attached, combine related T-lines and delete those schedules not being used.

Schedule 3 Line 1 - Foreign Tax Credit (Form 1116)

  1. If an amount is claimed on line 1 of more than $300 (more than $600 for FS2), Form 1116 or similar statement must be attached. If missing or if Form 1116 has no significant entries present or edited on line 7, 8, 24 or 35, correspond for Form 1116.

Schedule 3 Line 2 - Credit for Child and Dependent Care Expenses (Form 2441)

  1. If an amount is claimed on line 2, Form 2441 or a statement must be attached.

    1. Prepare a dummy Form 2441 when it is missing and a statement is present.

    2. Correspond when Form 2441 cannot be dummied.

Schedule 3 Line 3 - Education Credits (Form 8863, line 19)

  1. If an amount is claimed on line 3, Form 8863 must be attached. If missing correspond for Form 8863.

    Note:

    If the taxpayer has an entry on both Schedule 3 line 3 and Form 1040 line 29, correspond for only one missing Form 8863. Use the first entry amount and line number on the return.

  2. "X" line 3 if either of the following apply:

    • FS is 3 or 6

    • Taxpayer claimed both American Opportunity Credit and Lifetime Learning Credit for the same person on Form 8863.

Schedule 3 Line 4 - Retirement Savings Contribution Credit (Form 8880)

  1. If an amount is claimed on line 4, Form 8880 must be attached. If missing, correspond for Form 8880.

  2. If the amount on line 4 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the return has been hand-written/hand-prepared, "X" the amount.

Schedule 3 Line 5a - Residential Clean Energy Credit (Form 5695, Line 15)

  1. If an amount is claimed on line 5a, Form 5695 must be attached. If missing, correspond for Form 5695.

    Note:

    If an amount is claimed on line 5a and only page 2 or 3 Form 5695 is attached, delete the amount on line 5a.

Schedule 3 Line 5b - Energy Efficient Home Improvement Credit (Form 5695, Line 32)

  1. If an amount is claimed on line 5b, Form 5695 must be attached. If missing, correspond for Form 5695.

    Note:

    If an amount is claimed on line 5b and only page 1 or 2 Form 5695 is attached, delete the amount on line 5b.

Schedule 3 Line 6a through Line 6z- Nonrefundable Credits

  1. Use the instructions in the following subsections for editing lines 6a - 6z.

Schedule 3 Line 6a - General Business Credit (Form 3800)
  1. If an amount is present on line 6a, Form 3800 must be attached. If missing, correspond for Form 3800.

Schedule 3 Line 6b - Credit for Prior Year Minimum Tax (Form 8801)
  1. If an amount is present on line 6b, Form 8801 must be attached. If missing, correspond for Form 8801.

Schedule 3 Line 6d - Credit for the Elderly or Disabled (Schedule R)
  1. If an amount is present on line 6d, Schedule R must be attached. If missing, correspond for Schedule R.

  2. If "CFE" is notated and Schedule R is not attached, correspond with Form 3531/6001 using fill-in 28, per Exhibit 3.11.3-18.

  3. Take no additional action when the taxpayer has written DFAS-705 in the line 6 area.

Schedule 3 Line 6e
  1. Reserved. See prior year instructions at IRM 3.11.3.73.3.4.2(4).

Schedule 3 Line 6f - Clean Vehicle Credit (Form 8936, Line 13)
  1. If an amount is present on line 6f, Form 8936 must be attached. If missing, correspond for Form 8936.

Schedule 3, Line 6g - Mortgage Interest Credit (Form 8396)
  1. If an amount is present on line 6g, Form 8396 must be attached. If missing, correspond for Form 8396.

Schedule 3, Line 6m - Credit for Previously Owned Clean Vehicle (Form 8936, Line 18)
  1. If an amount is present on line 6m, Form 8936 must be attached. If missing, correspond for Form 8936.

Schedule 3 Line 7 - Total Other Nonrefundable Credits

  1. If line 7 is blank, dash or zero and there are entries on any lines 6a - 6z, compute by adding lines 6a - 6z and edit the amount on line 7.

Schedule 3 Line 9 - Net Premium Tax Credit (Form 8962)

  1. If an amount is claimed on line 9, Form 8962 must be attached. If missing, correspond for Form 8962.

  2. If using Form 6001 to correspond for missing Form 8962, also:

    1. Request Form 1095–A, if not present, using paragraph (d).

    2. Edit Action Code "224" .

  3. If using Form 3531 to correspond for missing Form 8962, include fill-in 31 if Form 1095-A is not attached, per Exhibit 3.11.3-18.

Schedule 3 Line 10 - Amount paid with request for extension (Form 4868)

  1. Do not perfect line 10 from an attached Form 4868. Include on line 10 an amount the taxpayer indicates as a payment from Form 2350, Application for Extension of Time to File U.S. Income Tax Return.

  2. Edit CCC "Y" and an Action Trail when 1040-C is written by line 10 or when Form 1040-C is attached.

Schedule 3 Line 11 - Excess Social Security and Tier 1 RRTA Tax Withheld

  1. Take no action when an amount of $5 or less is claimed.

  2. "X" an amount of greater than $5 on line 11 when the amount claimed on Form 1040, line 1a is less than:

    • $160,200 and excess SST is claimed.

    • $160,200 and excess Tier 1 RRTA is claimed.

  3. When an amount is present on line 11 and "RRTA" /"Tier 1 RRTA" is noted or there is an indication the taxpayer is a railroad employee:

    1. Accept the taxpayer's figure for excess Tier 1 RRTA, if Forms W-2 or similar statements from more than one employer are attached and such Forms W-2 or similar statements show the excess.

    2. When only one Form W-2 or similar statement is attached and the wage amount on Form W-2 or similar statement is greater than or equal to the amount on line 1a Form 1040, "X" line 11 Schedule 3.

    3. When no Form W-2 or similar statement is attached, correspond if using Form 6001 use fill-in 9, per Exhibit 3.11.3-18, if using Form 3531 check box 8.

  4. When an excess SST amount is present on line 11:

    1. If no Form W-2 or similar statement is attached, correspond if using Form 6001 use fill-in 9, per Exhibit 3.11.3-18, if using Form 3531 check box 8.

      Exception:

      Research IRP (when available) before corresponding. Do not research if corresponding for other missing information.

    2. If any single Form W-2 or similar attached statement shows an amount for Social Security tax withheld of more than $9,932.40, "X" the amount.

      Note:

      If the taxpayer has separate Forms W-2 with the same EIN, allow the excess SST/RRTA tax if "agent for [name of employer]" is listed in box "c" of Forms W-2 and the Forms W-2 have the same EIN, consider the Forms W-2 to be from different employers. You may also look for pay stub or Form 4852.

    3. Otherwise, use the following table to compute the excess SST amount.

      Note:

      For FS 2, compute the excess SST amount for each taxpayer separately. Compare the combined amounts to the entry on line 11.

    VERIFY EXCESS SOCIAL SECURITY TAX Primary Taxpayer Secondary Taxpayer
    1. Add all social security tax withheld for each employer. This tax is shown in box 4, Form W-2. Enter the total here. __________ __________
    2. Enter any uncollected social security tax on tips from W-2, Box 12, Codes A & M. __________ __________
    3. Add lines 1 and 2. __________ __________
    4. Social security limit $9,932.40 $9,932.40
    5. Subtract line 4 from line 3. Enter the result here (if the result is negative, enter zero here.) __________ __________
    6. Excess amount. Combine Primary and Secondary taxpayers line 5 amount. ______________

  5. Add the amounts for wages, tips, and other compensation on all Forms W-2 when the total excess SST computed amount differs from line 11 entry by more than $5. (See Figure 3.11.3-84.)

    1. "X" line 11 and edit the computed amount when all Forms W-2 are attached.

      Note:

      All Forms W-2 are considered to be attached when the combined wage amount from Forms W-2 is greater than or equal to the entry on line 1a, Form 1040.

    2. When FS 2 and all Forms W-2 are attached, "X" Schedule 3 line 11 if neither taxpayer is eligible for excess SST.

    3. When Forms W-2 are not all attached and you are unable to verify the amount through research, correspond for additional Forms W-2 to support line 11. If using Form 6001 use fill-in 9, per Exhibit 3.11.3-18, if using Form 3531 check box 8

    Note:

    Do not research if corresponding for other missing information.

    Figure 3.11.3-84

    This is an Image: 33440084.gif

    Please click here for the text description of the image.

Schedule 3 Line 12 - Credit for Federal Tax on Fuels (Form 4136)

  1. If an amount is claimed on line 12, Form 4136 must be attached. If missing, correspond for Form 4136.

Schedule 3 Lines 13a - 13z - Other Payments and Refundable Credits

  1. Use the instructions in the following subsections for editing lines 13a -13z.

Schedule 3 Line 13a - Form 2439
  1. If an amount of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ from Form 2439 is present on line 13a, Form 2439 must be attached. If not attached correspond using fill-in "10" , per Exhibit 3.11.3-18.

    Note:

    Form 2439 is a small form, generally found stapled to the front of the return with the Form(s) W-2. Form 2439 may reflect more than a single tax year and should not be treated as a combined tax liability.

    Caution:

    Check all attached Forms 2439 for an indication of "Reparation for African Americans," "Black Investment Taxes," or similar statements. These claims will be treated as Frivolous Returns. Follow the instructions in IRM 3.11.3.6.1.6.

Schedule 3 Line 13b - Credit for Repayment
  1. Edit CCC "Y" and an action trail when an amount is present for TY23-TY21.

Schedule 3 Line 13c - Elective Payment Election (EPE)
  1. This line is not transcribed; however, if an amount is present, Form 3800 must be attached. If missing, correspond for Form 3800.

Schedule 3 Line 13g - Reserved
  1. Reserved. For TY21 see IRM 3.11.3.73.3.4.6.

Schedule 3 Line 13h - Reserved
  1. Reserved. For TY20-TY21, see IRM 3.11.3.73.3.4.7

Schedule 3 Line 13z
  1. (Reserved)

Schedule 3 Line 14 - Total Other Payments and Refundable Credits

  1. Compute line 14 if blank, dash or zero and there are entries on any lines 13a through 13z. Add lines 13a - 13z and edit the total to line 14.

Schedule 3 Line 15

  1. (Reserved)

Schedule A - Itemized Deductions

  1. The instructions provided in this subsection of the manual are for editing Schedule A. These instructions include:

    • General editing procedures

    • Medical and dental expenses

    • Total taxes

    • Interest

    • Gifts to Charity

    • Casualty/theft loss

    • Other miscellaneous deductions

    • Total itemized deductions

    • Unallowable Codes

  2. Edit Sequence Code "07" in the upper-right margin of Schedule A if not preprinted.

  3. Only one Schedule A is processable. If more than one is attached, combine related T-line amounts onto one Schedule A and delete those not used.

  4. Do not"X" Schedule A when both of the following conditions are present:

    1. FS is 3 (Married Filing Separately) and the taxpayer claimed zero itemized deductions, and

    2. Schedule A is blank.

  5. Search Schedule A for unallowables. Code unallowables regardless of where they are found, so long as they meet the tolerance. Specific unallowable conditions are identified in the line-by-line instructions, as well as the table in the following paragraph.

    Note:

    Unallowable Codes in the 30-42 and 44-49 range are reserved for amounts claimed on Schedule A. Unallowable Code 43 can be used for amounts claimed on Schedule A and Schedule C.

  6. Dollar tolerances apply to all Schedule A Unallowable Codes. Code unallowables only when the total deducted amount (i.e., amount after any limitation) of the unallowable item is at least the dollar tolerance reflected in the table below. Code itemized deductions as unallowables only when the Schedule A is used and the amount for the unallowable item is at least ≡ ≡ ≡ ≡ ≡.

    Reminder:

    Edit amounts on Form 3471 in dollars only.

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

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

    Exception:

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

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

    Exception:

    ≡ ≡ ≡ ≡ ≡ ≡

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

    Note:

    Do not code unallowables under the reflected dollar tolerance.

  7. Review all returns with edited unallowables. Check for additional unallowables or frivolous conditions. Correct any unallowables which have been improperly coded.

Schedule A, General Editing Procedures

  1. The following lines on Schedule A are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Line 1

    • Line 3

    • Line 4

    • General Sales Tax Checkbox

    • Lines 5a through 5c

    • Lines 6 through 7

    • Lines 8a through 8c

    • Line 8d (TY21 and prior)

    • Lines 9 through 17

    • Line 18 Checkbox

    • Line 4

    • Line 7

    • Line 10

    • Line 14

    • Line 17

  2. "X" Schedule A when line 17 on Schedule A is less than line 12 of Form 1040 and line 12 is equal to the taxpayer's standard deduction amount unless any of the following apply:

    1. "IE" is indicated to the left of line 12 on Form 1040.

    2. FS 3 is claimed, and there are significant T-line entries on the Schedule A. The box on Form 1040 "Spouse itemizes on a separate return" , may or may not be marked.

    3. The box located on line 18, Schedule A is checked.

  3. Do not dummy a Schedule A from attachments when the taxpayer used one of the standard deduction amounts. Use the Standard Deduction Chart in IRM 3.11.3.14.2.20(1) for the standard deduction amounts.

Lines 1 and 4 - Medical and Dental Expenses
  1. If line 1 is blank and line 4 has a significant entry, edit line 1 from attachments.

  2. If lines 1 and 4 are both blank and there is an attachment with an amount for medical deductions present, edit the attachment amount to:

    1. Line 1 if line 3 has been computed by the taxpayer or

    2. Line 4 if line 3 has not been computed by the taxpayer.

  3. Compute and edit the total when line 4 is blank, and lines 1 and 3 have entries.

  4. Edit Unallowable Code "33" and the lesser of the unallowable amount or the line 4 amount when the taxpayer claims personal living expenses incidental to medical treatment in excess of ≡ ≡ ≡ ≡ ≡. Unallowable items include:

    • Meals

    • Lodging in excess of $50 per day per person

    • Health club dues

    • Diet foods

    • Funeral expenses

    • Maternity clothes

Line 6- Other Taxes
  1. Delete the amount if the taxpayer used line 6 as a subtotal line.

Line 7 - Total Taxes
  1. Compute and edit if blank.

  2. Correspond for an explanation if line 7 has a dollar amount and lines 5a through 6 are blank. If using Form 6001, use box "O" , if using Form 3531, use box 19-20.

  3. Edit Unallowable Code"34" and the amount claimed if the taxpayer claims a deduction for Federal taxes of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Unallowable items include Federal taxes for:

    • Income

    • Social Security

    • Medicare

    • Excise tax on autos, tires and air transportation

    • Duties imposed on imports or by Customs

  4. Edit Unallowable Code"35" and the amount claimed when there is an amount for utility taxes of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Examples include: sewer, water, phone, etc.

    Exception:

    This does not include sales taxes paid on utilities in Minnesota and Wisconsin.

  5. Edit Unallowable Code"36" and the amount claimed if there is an amount for state and local taxes of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Examples include: hotel, meal, airfare, inheritance, stamp, etc.

  6. Edit Unallowable Code"37" and the amount claimed if the taxpayer is claiming a deduction of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for personal auto registration, tag and license taxes or fees except for residents of any of the following states:

    Alabama Kentucky Nevada
    Arizona Maine New Hampshire
    California Massachusetts Oklahoma
    Colorado Michigan South Carolina
    Connecticut Minnesota Virginia
    Georgia Mississippi Washington
    Indiana Montana Wyoming
    Iowa Nebraska  

Line 8a and 8b - Home Mortgage Interest and Points
  1. When the taxpayer enters amounts in the line 8 area, take the following actions:

    If And Then
    Line 8a is blank, The taxpayer clearly identified an amount(s) to be home mortgage, Edit the amount to line 8a.
    Line 8b is blank, The taxpayer clearly identified an amount(s) has been paid to an individual or individuals, Edit the amount to line 8b.

Line 9 - Investment Interest
  1. Delete the amount if the taxpayer used line 9 as a subtotal line.

Line 10 - Total Interest
  1. Compute and edit line 10 when it is blank.

  2. If an amount is entered and no entries are present on lines 8a through 9, take one of the following actions:

    1. Edit the line 10 amount to line 8a if there is an amount on line 5b of Schedule A.

    2. Correspond for an explanation of the line 10 amount if line 5b on Schedule A is blank. If using Form 6001, use box O, if using Form 3531 use box 19-20.

  3. Edit Unallowable Code "41" and the amount claimed if there is an amount for personal interest paid of ≡ ≡ ≡ ≡ or more.

Lines 11, 12, 13, and 14 - Gifts to Charity
  1. Take the following actions for a claim on line 12, Schedule A:

    If And Then
    A] Schedule A, line 12, is more than $500, Form 8283 is attached with significant entries or a statement supporting attached Form 8283, Edit RPC "H" .
    A] Schedule A, line 12, is more than $500, Form 8283 is missing, or attached with no significant entries or supporting statement, Correspond for Form 8283. If using Form 6001, use box "I" , if using Form 3531, use box 11-14.
    A] Schedule A, line 12, is more than $500, Form 8283 indicates donation of an automobile, airplane or boat, Form 1098-C must also be present. If Form 1098-C is not attached, "X" line 12.

    Note:

    In lieu of Form 1098-C, the taxpayer may attach a similar statement if it includes all the same information as on Form 1098-C.

    B] Schedule A, line 12, is more than $500,000, A separate qualified appraisal is attached and Form 8283 (Section B, Parts IV and V) (for TY19 and prior, Section B, Parts III and IV), is complete, Edit RPC "4" .
    B] Schedule A, line 12, is more than $500,000, A separate qualified appraisal is not attached, Correspond with Form 3531/6001 using fill-in 34, per Exhibit 3.11.3-18.
    C] Form 8283 attached and any of the following are true: Part I, Checkbox 2b or Checkbox 2b1 are marked, or Line 3 column h, contains a value other than zero.   Edit Audit Code "C" .
    C] The taxpayer checked box "a" (Art contribution of $20,000 or more) on line 2, (for TY19 and prior line 4), Section B of Form 8283 and Schedule A, line 12, is more than $20,000, A separate qualified appraisal is not attached, Correspond with Form 3531/6001 using fill-in 27, per Exhibit 3.11.3-18.
    D] Section B of Form 8283 has significant entries in Part I, Parts IV and V, (for TY19 and prior, Parts III and IV), are incomplete, Correspond with Form 3531/6001 using fill-in 26, per Exhibit 3.11.3-18.
    E] Section B of Form 8283 has significant entries in Part I line 3 (for TY19 and prior, line 5), column (c) has an entry of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Edit Audit Code "C" .

  2. "X" line 13, Schedule A, if:

    • Line 13 is a negative amount.

    • The taxpayer used line 13 as a subtotal line.

  3. If line 14, Schedule A:

    • Is blank and there are entries leading to a total, compute and edit line 14.

      Exception:

      Do not compute, if the taxpayer notated "limited" , "disallowed contributions" or similar statement on the dotted portion of line 14.

    • Has an amount and lines 11-13 are blank and cannot be perfected from attachments, correspond for an explanation of the amount. If using Form 6001, use box "O" , if using Form 3531, use box 19-20.

  4. When unallowable expenses for contributions are claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, on lines 11 or 12, edit Unallowable Code "42" and the amount claimed.

    Note:

    Unallowable deductions include:
    - Individuals
    - Non-qualifying organizations (e.g., foreign charities except for those in Canada, lobbying organizations, etc.)

Line 15 - Casualty and Theft Loss
  1. If an amount is claimed on line 15 and Form 4684 is not attached, correspond.

  2. For TY16 and later, if a Federally declared disaster loss is claimed on Schedule A and Form 4684, edit FPC "D" .

Line 16 - Other Itemized Deductions
  1. Only the expenses listed below can be deducted on line 16:

    • Gambling losses, but only to the extent of gambling winnings reported on Schedule 1, line 8b

    • Casualty and theft losses of income-producing property (Form 4684, line 32 or 38b, or Form 4797, line 18a)

    • Loss from Schedule K-1

    • Federal estate tax on income in respect of a decedent

    • Amortizable bond premiums

    • Losses attributable to qualified disasters (Form 4684, line 15)

    • Standard Deduction when associated with qualified disaster loss

    • Impairment-related work expenses of a disabled person

      Note:

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

    • Repayments under a claim of right ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

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

    • Unrecovered investments in a pension

    • An ordinary loss attributable to a contingent payment debt instrument or an inflation-indexed debt instrument

  2. Subtract the total of any miscellaneous deductions not listed in (1) above from the amount on line 16.

    Note:

    Do not subtract amounts when the taxpayer includes an amount, but does not include an explanation for the deduction.

  3. Allow the taxpayer's gambling losses up to the amount of winnings claimed on line 8b of Schedule 1. Adjust line 16 to equal gambling winnings when the taxpayer is claiming more gambling losses on Schedule A than They report as winnings on line 8b, Schedule 1. (See Figure 3.11.3-85.)

  4. Taxpayers claiming a Disaster Loss will note on line 16:

    "Net Disaster Loss" , "Standard Deduction Claimed with Disaster Loss" or similar statement,
    An amount for the disaster loss and
    The amount for their Standard Deduction (if not itemizing)

    1. If the taxpayer reports a net disaster loss, the amount entered on Form 1040, line 12a should be their Standard Deduction plus the amount claimed as net disaster loss as entered on Schedule A, line 16 (from Form 4684, line 15), if not itemizing.

    2. If the taxpayer uses line 16 and reports a net disaster loss, use the following table:

    If on Line 16 And Then
    An amount for a disaster loss is claimed Form 4684 is missing Correspond for Form 4684
    An amount for a disaster loss is claimed
    • Line 15, Form 4684 is blank or zero and

    • The entry on line 16, Form 4684 is the same as the entry for net disaster loss on line 16, Schedule A

    • Consider the entry on line 16, Form 4684 a misplaced entry and

    • Delete line 16, Form 4684.

    Note:

    For TY16 and later, if a Federally Declared Disaster Loss is claimed on Schedule A and Form 4684, also edit FPC"D" See IRM 3.11.3.6.1.3(2).

    Figure 3.11.3-85

    This is an Image: 33440085.gif

    Please click here for the text description of the image.

Line 17 - Total Itemized Deductions
  1. If line 17 is blank, compute and edit from total lines (lines 4, 7, 10, 14, 15, and 16).

  2. Delete all but the smallest amount when there are multiple entries.

Line 18 - Itemized Deduction Election
  1. (Reserved).

Prior Year Schedule A, General Editing Procedures

  1. For TY10 - TY09, "X" Schedule A if Schedule L is present showing a larger itemized deduction.

Other Itemized Deductions
  1. For TY17-TY13, "X" line 16 when the amount on line 16 includes non-gambling deductions and the AGI amount on line 11, Form 1040 is over:

    Tax Year FS 1 FS 2 or 5 FS 3 or 6 FS 4
    2017 $261,500 $313,800 $156,900 $287,650
    2016 $259,400 $311,300 $155,650 $285,350
    2015 $258,250 $309,900 $154,950 $284,050
    2014 $254,200 $305,050 $152,525 $279,650
    2013 $250,000 $300,000 $150,000 $275,000

Schedule B - Interest and Ordinary Dividends - General Procedures

  1. The instructions provided in this subsection of the manual are for editing Schedule B. These instructions include:

    • General editing procedures

    • Gross interest (lines 1 and 2)

    • Excludable savings bond interest (line 3)

    • Gross dividends (lines 5 and 6)

    • Foreign account indicator (line 7a)

    • Foreign trust question (line 8)

  2. The following lines on Schedule B are T-lines:

    T-Lines T-Compute Lines
    • Line 2 - edited to the left of line 2

    • Line 3

    • Line 6 - edited above the instructions for line 6.

    • Foreign Account Indicator

    • FinCEN Form 114 Indicator

    • There are no T-Compute lines for this schedule.

Schedule B

  1. Edit Sequence Code "08" in the upper-right margin of Schedule B if not preprinted, and any of the following are present:

    • Gross interest is edited

    • Gross dividends are edited

    • Line 3 has an entry

    • Any box on line 7a is marked.

  2. Only one Schedule B can be processed. Combine related T-line amounts and "X" the Schedule(s) B not used when more than one is attached to the return.

  3. Edit T-lines from attachments when "see attached" is written on Schedule B. (See Figure 3.11.3-86.)

    Reminder:

    Further editing of Lines 2a, 2b, and/or Line 3b on Form 1040 may be required from Schedule B.

    Figure 3.11.3-86

    This is an Image: 33440086.gif

    Please click here for the text description of the image.

  4. Do not "X" Schedule B when any of the boxes on line 7a is marked.

Lines 1 and 2 - Gross Interest
  1. The taxpayer may subtract the following adjustments from interest income. Edit the gross interest amount to the left of line 2 by adding the adjustment amount to the line 2 amount when the taxpayer subtracts amounts identified as any of the following (See Figure 3.11.3-87.):

    • Nominee distribution

    • Accrued interest

    • Original issue discount (OID)

    • Purchased interest

    • Amortizable Bond Premium/ABP Adjustment

    Figure 3.11.3-87

    This is an Image: 33440087.gif

    Please click here for the text description of the image.

Line 3 - Excludable Savings Bond Interest
  1. When line 3 has a significant entry and Form 8815 is not attached, correspond for Form 8815 unless it can be determined the entry is misplaced.

Lines 5 and 6 - Gross Dividends
  1. Compute and edit the amount of gross dividends above the instructions for line 6 when line 5 adjustments are present for nominee distributions. Compute the gross dividend amount by adding the nominee distribution to the line 6 amount. (See Figure 3.11.3-88.)

    Figure 3.11.3-88

    This is an Image: 33440088.gif

    Please click here for the text description of the image.

Line 8 - Foreign Trust Question (Not Transcribed)
  1. If Schedule B, line 8, box is marked "yes" , edit Audit Code "H" .

Prior Year Schedule B

  1. For tax years 2022 through 1990 take the following actions:

    1. "X" Schedule B unless there is an entry on line 3.

    2. Do not edit gross interest or dividends.

  2. "X" the Schedule B when the tax year of the return is 1989 or prior.

Schedule C - Profit or Loss from Business - General Procedures

  1. The instructions provided in this subsection of the manual are for editing Schedule C. These instructions include:

    • General editing procedures

    • Combining multiple Schedules C

    • North American Industry Classification System (NAICS)

    • Employer Identification Number (EIN)

    • Accounting method

    • Statutory employees

    • Income (lines 1 through 7)

    • Expenses (lines 8 through 27b)

    • "At risk" question

  2. The following lines on Schedule C are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    Schedule C:
    • SSN

    • Lines A, B, C, D, F H, I and J

    • Statutory Employee Indicator Box

    • Lines 1 through 4

    • Line 6

    • Line 9

    • Line 13

    • Line 15

    • Line 16a

    • Line 17

    • Line 18

    • Line 21

    • Lines 24a and 24b

    • Line 25

    • Lines 26 through 27b

    • Line 28

    • Line 30

    • Line 32 At Risk Indicator

    • Line 35

    • Line 41

    Schedule C:
    • Line 1

    • Line 2

    • Line 3

    • Line 28

Schedule C

  1. Up to three Schedules C can be processed. Follow the instructions for combining Schedules C in IRM 3.11.3.20.2 when more than three are present.

  2. Edit Sequence Code "09" in the upper-right margin of the first Schedule C if "09" is not preprinted. Edit Sequence Code "10" on the second Schedule C and Sequence Code "11" on the third.

  3. Edit the TIN from the caption on Form 1040 when the TIN is missing, illegible or other than 9 digits. If the TIN is not present in the caption, search Forms W-2 and other attachments for the missing TIN.

    Note:

    Edit a newly issued ITIN or IRSN, if necessary.

  4. "X" Schedule C when the taxpayer specifically states the loss is from a hobby or nonprofit activity.

  5. "X" Schedule C when no money amounts are present.

  6. If a Form W-2 wage amount is reported on Schedule C, delete the amount from Schedule C and edit it to line 1a of Form 1040.

    Exception:

    Do not move the amount if the taxpayer is a minister, insurance salesman, or if the statutory employee box is marked.

  7. If the taxpayer indicates Schedule C income is from a partnership or joint venture by noting a fractional share or percentage of the income:

    1. Include the net fractional amount on Schedule E, line 30 (gain) or line 31 (loss).

    2. Delete the amount from line 3 of Schedule 1.

    3. Edit or add the amount to line 5 of Schedule 1.

    4. "X" Schedule C.

    Exception:

    When the taxpayer indicates the fractional share of Schedule C income is farm income, edit the taxpayer's share of the gross amount on line 42 of Schedule E.

Combining Multiple Schedules C

  1. When the taxpayer submits more than three Schedules C combine them to a total of three, following the instructions in this subsection of the manual.

  2. Combine only the items to be transcribed and "X" those schedules not used.

  3. Do not combine statutory employee schedules with non-statutory employee schedules.

  4. Whenever possible, combine Schedule Cs with like TINs.

  5. Whenever possible, combine gains with gains and losses with losses.

  6. Combine schedules with lesser receipts (line 1) if possible.

  7. Use the NAICS Code from the Schedule C being combined with the largest gross income. Gross income is found on line 7 of Schedule C.

  8. Use the EIN from the Schedule C being combined showing the largest gross profit. Gross profit is found on line 5 of Schedule C.

Line A - Principal Business or Profession

  1. Delete entries on line A that do not pertain to a principal business or profession. Examples include, but are not limited to: "1099 MISC" , "No Name" , "same" , etc.

Line B - North American Industry Classification System (NAICS) Code

  1. Refer to the following chart for editing the NAICS code:

    If Then
    Missing, incomplete, or illegible, Take no action.
    More than one, Circle all but the first.
    Combining multiple Schedules C, Use the code from the Schedule C with the largest gross income.
    Dummying, Edit if taxpayer furnished a code.
    More than 6 digits long, Delete NAICS

Line D - Employer Identification Number (EIN)

  1. Circle the EIN when it is more or less than nine digits or contains letters.

Line F - Accounting Method

  1. If a computer-generated schedule has been submitted and the accounting boxes are not present:

    1. If "cash" is present, edit a "1" to the left of "cash" .

    2. If "accrual" is present, edit a "2" to the left of "accrual" .

Statutory Employee

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡" ≡ ≡ ≡ ≡ ≡"≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

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

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

    Exception:

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

  2. Do not edit RPC "S" when any of the following are present:

    1. There is another Schedule C present that is for a non-statutory employee.

    2. The taxpayer shows a gain on a Schedule E, Part II, or on a Schedule F.

    3. The taxpayer reports self-employment income on line 8z of Schedule 1 that is subject to self-employment tax.

    4. The FS is "2" and the spouse has income that is subject to SE tax.

Income - Lines 1 through 7

  1. Income is reported on the Schedule C on lines 1 through 7.

Line 1 - Gross Receipts or Sales
  1. If line 1 is blank, dash, or zero, take one of the following actions:

    1. Compute and edit by adding line 2 to line 3.

    2. Edit line 5 to line 1 when no significant amounts are present on lines 1 through 4.

    3. Edit line 7, if positive, to line 1 when no amounts are present on lines 1 through 6. (See Figure 3.11.3-89.)

    4. Edit line 7, if negative, to line 6 when no amounts are present on lines 1 through 6. Bracket the amount.

    5. Otherwise, take no action.

    Figure 3.11.3-89

    This is an Image: 33440089.gif

    Please click here for the text description of the image.

Line 2 - Returns and Allowances
  1. Compute and edit line 2 when there is no entry on line 2, but line 1 and line 3 have entries of different amounts. Compute and edit by subtracting line 3 from line 1.

Line 3 - Net Gross Receipts
  1. Compute and edit line 3 amount when it is blank, dash or zero and there are entries leading to a total. (See Figure 3.11.3-89.)

Line 4 - Cost of Goods Sold
  1. Edit line 4 in the following priority when it is blank:

    1. Edit the amount from line 42 or from an attachment.

    2. Compute the line 42 amount and edit it on line 4.

Expenses - Lines 8 through 27b

  1. Expenses are reported on the Schedule C on lines 8 through 27b

  2. Line 27b is valid for TY23 and later.

Line 27a - Other Expenses
  1. "X" line 27a when negative. Do not adjust the line 28 amount.

  2. Edit the misplaced item(s) to the correct T-line when any transcribed items are included in "Other Expenses" on page 2 of Schedule C.

    Note:

    Only move amounts when the wording exactly matches the wording on the T-line, except for "office in home expense" .

  3. If T-line amounts have been included in line 27a, adjust line 27a.

    Note:

    If an amount for "office in home" is included, also adjust line 28.

  4. If line 27a is blank, take one of the following actions:

    1. Edit the line 48 entry to line 27a or

    2. If line 48 is blank, and entries are present in Part V, compute the line 48 amount and edit it to line 27a.

Line 28 - Total Expenses before Expenses for Home Use
  1. Compute and edit line 28 when it is blank and there are significant entries on lines 8 through 27b.

Line 30 - Expenses for Business Use of Home
  1. "X" line 30 if either of the following conditions exist:

    1. Line 30 is equal to line 31, or

    2. Line 30 is equal to line 3 of Schedule 1 and no Form 8829 is attached to the return.

  2. Edit Audit Code "B" when line 30 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8829 is not attached.

  3. Edit the amount from line 36 of Form 8829 to line 30 when line 30 is blank and Form 8829 is attached.

Line 32b - "At Risk" Question

  1. Form 6198 must be present if any Schedule C has a loss ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the 32b box is marked. Correspond, if missing. If using Form 6001 use box S, if using Form 3531 use box 11-14.

Prior Year Schedule C/Schedule C-EZ

  1. The following chart shows the T-Lines for Schedule C-EZ. Unless otherwise noted instruction for Schedule C apply to corresponding lines on Schedule C-EZ.

    Schedule C-EZ T-Line Chart

    T-Lines T-Compute Lines
    • SSN

    • Lines A-D

    • Lines F-G

    • Lines 1-2

    • Lines 1-2

     

  2. For TY17-TY14, edit the amount from line 35 of Form 8829 to line 30 when line 30 is blank and Form 8829 is attached.

  3. For TY11, edit RPC "S" and RPC "B" when line 31 on Schedule C (or line 3, Schedule C-EZ) is, or can be determined to be, a gain of $434 or more, Schedule SE is not attached, any of the following conditions are present:

    1. Line 1c shows a significant entry.

    2. The taxpayer indicates they are "not liable" for self-employment tax.

    3. Form 4361 or 4029 is attached.

    Exception:

    Do not edit RPC "S" when (5) below applies.

  4. For TY11, do not edit RPC "S" when any of the following are present:

    1. Another Schedule C for a non-statutory employee (No entry is present on line 1c)

    2. A gain reported on Schedule E, Part II, or on Schedule F

    3. Self-employment income reported on line 8z, Schedule 1, that is subject to self-employment tax.

    4. The FS is "2" and the spouse has income subject to SE tax.

  5. For TY1990 and prior:

    1. Do not edit Audit Code "B" .

    2. Do not edit Office in Home expenses to line 30.

Schedule D - Capital Gains and Losses - General Procedures

  1. The instructions provided in this subsection of the manual are for editing Schedule D. These instructions include general editing procedures.

  2. Edit Sequence Code "12" in the upper-right margin of Schedule D if not preprinted.

  3. Only one Schedule D can be processed. If more than one is attached, take the following actions:

    1. Combine related T-Line amounts onto one schedule.

    2. "X" those schedules not used.

  4. Do not delete Schedule D when the "YES" checkbox is marked and there are no significant T-line entries present.

  5. Edit Unallowable Code "92" and the amount of the loss when a loss ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is reported on Schedule D from the sale of a personal asset (e.g., furniture, jewelry, automobiles, personal residence, etc.). Do not code for assets identified as "rental" or "inheritance" .

  6. Take no action when "Related party like-kind exchange" is written on Schedule D.

  7. Do not include amounts with "Ethics in Government Act" or "EGA" noted next to the amount when computing T-Lines.

  8. The following lines on Schedule D are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Yes/No Checkbox (TY19 and later)

    • Line 1a, columns (d) and (e)

    • Lines 1b - 3, columns (d), (e) and (g)

    • Line 5

    • Line 7

    • Line 8a, columns (d) and (e)

    • Lines 8b - 10, columns (d), (e) and (g)

    • Line 12

    • Line 13

    • Line 15

    • Line 18

    • Line 19

    • Line 7

    • Line 15

Schedule D

  1. The following line-by-line instructions are for editing Schedule D.

Line 7 - Column (h), Gain or Loss for Entire Year
  1. Compute and edit line 7 when it is blank and there are entries leading to a total. (See Figure 3.11.3-90.)

    Figure 3.11.3-90

    This is an Image: 33440090.gif

    Please click here for the text description of the image.

Line 15 - Net Long-Term Gain or Loss for Entire Year
  1. Compute and edit line 15 when it is blank and there are entries leading to a total. (See Figure 3.11.3-90.)

Line 18 - 28% Rate Gain
  1. When line 18 is blank, edit a positive amount from line 7 of the 28% Rate Gain Worksheet, if attached.

Line 19 - Unrecaptured Section 1250 Gain
  1. When line 19 is blank, edit a positive amount from line 18 of the Unrecaptured Section 1250 Gain Worksheet, if attached.

Prior Year Schedule D

  1. (Reserved)

Form 8949 - Sales and Other Dispositions of Capital Assets

  1. The instructions provided in this subsection of the manual are for editing Form 8949.

  2. Delete Form 8949 without a "Z" or "Y" coded entry. Only a Form 8949 with a "Z" or "Y" coded entry in Part I or Part II, column “f” is transcribed.

  3. Edit Sequence Code "12A" in the upper-right margin of Page 1 if not preprinted.

  4. Form 8949, Seq #12A, when not deleted, must be located directly following Schedule D, Seq #12 when attached to the return.

  5. Only one Form 8949 can be processed. When more than one is present, process the first form with entries present and a code of "Z" or "Y" in column "f" . Delete those forms not used and delete all forms when no "Z" or "Y" code is present.

  6. The following lines on Form 8949 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    Entries with "Z" Code:
    • Part I, col a

    • Part I, col b

    • Part I, col g

    • Part I indicator, edited to the right of Part I, col h

    • Part II, col a

    • Part II, col b

    • Part II, col g

    • Part II indicator, edited to the right of Part II, col h

    Entries with "Y" Code (TY20 and later):
    • Part I, col a

    • Part I, col c

    • Part I, col g

    • Part I indicator, edited to the right of Part I, col h

    • Part II, col a

    • Part II, col c

    • Part II, col g

    • Part II indicator, edited to the right of Part II, col h

    There are no T-Compute Lines

  7. Edit RPC "U" if there is a "Z" Code or "Y" Code present in column "f" .

  8. Edit a "Z" or "Y" to the left of the first line 1 entry with a "Z" or "Y" code in column “f” for both Part I and Part II.

  9. Edit Part I indicator code of "1" to the right of Part I column "h" when:

    1. more than one entry is present on line 1 of Part I and,

    2. more than one entry has "Z" or "Y" code in column "f" .

  10. Edit Part II indicator code of "1" to the right of Part II column "h" when:

    1. more than one entry is present on line 1 of Part II and,

    2. more than one entry has "Z" or "Y" code in column "f" .

Prior Year Form 8949

  1. For TY19, edit a "Z" to the left of the first line 1 entry with a "Z" code in column “f” for both Part I and Part II.

  2. For TY18 and prior, "X" the form.

Schedule E - Supplemental Income and Loss, General Procedures

  1. The instructions provided in this subsection of the manual are for editing Schedule E. These instructions include:

    • General editing procedures

    • Combining multiple Schedules E

    • Editing fractional shares to Part II

Schedule E

  1. The following are the T-Lines and T-Compute Lines on Schedule E:

    T-Lines T-Compute Lines
    • Checkboxes A and B

    • Line 14, columns (a) - (c)

    • Lines 23a through e

    • Lines 24 and 25

    • Line 27, checkboxes

    • Lines 29a, column (h) and, column (k)

    • Line 29b column (g) and column (i)

    • Line 30

    • Line 31

    • Line 34a, column (d)

    • Line 34b, column (c)

    • Line 35

    • Line 36

    • Line 37 - edited to the left of line 37

    • Line 39

    • Line 40

    • Line 42

    • Line 43

    • Lines 23a through e

    • Lines 24 and 25

    • Lines 29a, column (h) and, column (k)

    • Line 29b, column (g) and column (i)

    • Line 30

    • Line 31

    • Line 35

    • Line 36

    • Line 39

  2. Edit Sequence Code "13" in the upper-right margin of Schedule E if not preprinted.

  3. Do not "X" page 1 of Schedule E when there are significant T-line entries on page 2.

  4. Only one Schedule E can be processed. If more than one Schedule E or Schedule E worksheet is attached, take one of the following actions:

    If Then
    The taxpayer provided one summary Schedule E with combined totals,
    1. Process the Schedule E with the combined totals

    2. Delete those schedules not used.

    Note:

    If a taxpayer provided a summary Schedule E with combined totals, each of lines 14a, 14b and 14c may still need to be combined.

    The taxpayer did not provide one summary Schedule E with combined totals,
    1. Combine related T-Line amounts onto one Schedule E.

    2. Delete those schedules not used.

    Note:

    Add T-line amounts on line 14, columns (a) through (c) in their respective columns when combining multiple Schedules E.

    Reminder:

    Be sure that page 2, Schedule E information has been accounted for when combining Schedules E.

Part I - Income or Loss from Rental Real Estate and Royalties
  1. Part I of Schedule E is used by the taxpayer to report income or loss from rental property.

Line 14 - Repairs
  1. If more than one Schedule E or Schedule E worksheet is present, combine dollar amounts on lines 14a, 14b and 14c to the total page. (See Figure 3.11.3-91.)

    Figure 3.11.3-91

    This is an Image: 33440091.gif

    Please click here for the text description of the image.

Lines 23a through 23e - Total Lines
  1. Follow the line instructions on the form to T-Compute totals on lines 23a through 23e.

    Note:

    Royalty income is determined by property Code 6 on line 1. All other codes are considered rental income. If no code is present, assume income amount is from rental income.

  2. Adjust line 23e, if necessary, to reflect the correct percentage of the taxpayer's share when there is an indication in the line 26 area the taxpayer has taken a fractional portion of line 26.

Line 24 - Total Income
  1. Follow the line instructions on the Schedule to compute and edit line 24 when both of the following conditions are present (See Figure 3.11.3-92):

    • Line 24 is blank, and

    • There is a positive entry on line 21.

  2. Compute and edit line 24 by adding lines 23a and 23b when both of the following conditions are present:

    • Line 24 is blank

    • There are no entries on lines 5 through 22

    Figure 3.11.3-92

    This is an Image: 33440092.gif

    Please click here for the text description of the image.

Line 25 - Total Loss(es)
  1. Compute and edit line 25 when line 25 is blankand either or both of the following conditions are present (See Figure 3.11.3-93):

    1. A royalty loss on line 21

    2. A rental loss on line 22

    Figure 3.11.3-93

    This is an Image: 33440093.gif

    Please click here for the text description of the image.

Line 26 - Total Rental and Royalty Income or Loss (Not Transcribed)
  1. Adjust line 23e, if necessary, to reflect the correct percentage of the taxpayer's share when there is an indication in the line 26 area the taxpayer has taken a fractional portion of line 26.

  2. Edit SPC "A" , when Non-Passive Activity (NPA) is noted by the taxpayer in the line 26 area.

Part II - Income or Loss from Partnerships and S Corporations
  1. Part II of Schedule E is used by the taxpayer to report income or loss from partnerships and S corporations.

Lines 28A through 28D - Column (f), At Risk (Not Transcribed)
  1. Correspond for Form 6198 (Form 6001 box S or Form 3531 box 11-14) if it is not attached when both of the following are present: (See Figure 3.11.3-94.)

    1. An amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is reported in column (g) or column (i),and

    2. The taxpayer checks the corresponding column (f) line, "Check if any amount is not at risk" .

    Figure 3.11.3-94

    This is an Image: 33440094.gif

    Please click here for the text description of the image.

Lines 29a through 29b - Total Lines
  1. Compute lines 29a and 29b if there are entries leading to a total and lines 29a and 29b are blank. T-Compute columns g, h, i, and k.

Lines 30 and 31 - Total Partnership or S-Corporation Income or Loss Subtotal Lines
  1. Compute and edit lines 30 and/or 31 when they are blank and there are entries leading to a total.

  2. Edit or arrow the amount from line 32 to either line 30 or line 31 (see Figure 3.11.3-95), when both lines are blank and there are no entries leading to a total. Edit the line 32 amount to:

    1. Line 30 if the amount on line 32 is positive or,

    2. Line 31 if the amount on line 32 is negative

    Figure 3.11.3-95

    This is an Image: 33440095.gif

    Please click here for the text description of the image.

Part III - Income or Loss from Estates or Trusts
  1. Part III of Schedule E is used by the taxpayer to report income or loss from estates and trusts.

  2. Compute and edit lines 35 and/or 36 when they are blank and there are entries leading to a total.

  3. Edit or arrow the amount from line 37 to either line 35 or line 36 when both lines are blank. Edit the line 37 amount to:

    1. Line 35 if the amount on line 37 is positive or,

    2. Line 36 if the amount on line 37 is negative

Part IV - Income or Loss from Real Estate Mortgage Investment Conduits (REMICs)
  1. Part IV of Schedule E is used by the taxpayer to report income or loss from REMICs.

Line 39 - REMIC Income/Loss
  1. Combine line 38 columns (d) and (e) only, and edit the total on line 39 when line 39 is blank and there are entries leading to a total.

Part V - Summary
  1. Part V of Schedule E is used by the taxpayer to summarize income and losses reported on Schedule E and Form 4835.

Line 40 - Net Farm Rental Income or Loss from Form 4835
  1. Take one of the following actions when line 40 is blank and Form 4835 is attached:

    If on Form 4835 Then
    A fractional interest is indicated,
    • Edit gains on line 30 of Schedule E.

    • Edit losses on line 31 of Schedule E.

    • Do not"X" Form 4835.

    Line 32 is a gain, Edit the line 32 amount on line 40 of Schedule E.
    Line 34c is a loss, Edit the line 34c amount on line 40 of Schedule E.

    Exception:

    If the taxpayer notates "PAL" , do not edit the negative amount to Schedule E, line 40.

    Line 34c blank, Edit the loss from line 32 of Form 4835, to line 40 Schedule E.

    Exception:

    If the taxpayer notates "PAL" , do not edit the negative amount to Schedule E, line 40.

  2. Compute the Form 4835 totals when perfecting Schedule E and multiple Forms 4835 are attached.

Line 42 - Gross Farming and Fishing Income from Form 4835
  1. Edit a positive amount from line 7 of Form 4835 when:

    1. Line 42 is blank and,

    2. Form 4835 is attached.

    Note:

    Combine Forms 4835 totals when perfecting Schedule E and multiple Forms 4835 are attached.

  2. "X" the amount on line 42 when the amount is negative.

Prior Year Schedule E

  1. (Reserved)

Schedule F - Profit or Loss from Farming

  1. The instructions provided in this subsection of the manual are for editing Schedule F. These instructions include:

    • General editing procedures

    • Combining multiple Schedules F

    • Perfecting the North American Industry Classification System (NAICS) Code

    • Perfecting the Employer Identification Number (EIN)

  2. The following lines on Schedule F are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Lines B, D, F and G

    • Line 1b

    • Line 2

    • Lines 3a and 3b

    • Lines 4a and 4b

    • Line 5b

    • Lines 6a and 6b

    • Line 7

    • Line 9

    • Line 13

    • Lines 19, 21a, 25, 28 and 33

    • Line 36 "At Risk" Indicator

    • Lines 38a, 38b and 39a

    • Line 40b

    • Line 44

    • Line 50

    • Line 9

    • Line 33

    • Line 44

    • Line 50

Schedule F - General Editing Procedures

  1. Up to two Schedules F can be processed. Follow the instructions for combining Schedules F in IRM 3.11.3.24.2 when more than two are present.

  2. Edit Sequence Code "14" in the upper-right margin of the first Schedule F if not preprinted. Edit Sequence Code "15" on the second Schedule F.

  3. "X" Schedule F when no money amounts are present.

  4. Take the following actions when the taxpayer indicates that Schedule F income is from a partnership or joint venture by noting a fractional share or percentage of the income:

    1. Include the net fractional amounts on the Schedule E as follows: gains on line 30 and losses on line 31.

    2. Delete the amount from line 6 of Schedule 1.

    3. Edit or add the amount to line 5 of Schedule 1.

    4. Edit the taxpayer's share of the gross amount from line 9 of the Schedule F to line 42 of Schedule E.

    5. "X" the Schedule F.

  5. If Schedule F is blank, transfer income amounts from an attachment to one of the following sections:

    1. If a beginning or ending inventory is shown, edit the amounts in Part III, Accrual Method Section.

    2. Otherwise, edit the amounts in Part I, Cash Method Section.

  6. Refer to the table below to determine RPC "S" editing.

    If line 34 of Schedule F is a gain of $434 or more and Schedule SE is not attached, and; Then
    • Taxpayer indicates not liable for self-employment tax or

    • Schedule F income is from farm rental only or;

    • Form 4029 or 4361 is attached, or

    • There is an indication of "Amish" or "Mennonite,"

    Edit RPC "S" and RPC "B" .

    Exception:

    Do not edit RPC "B" when Schedule F income is from farm rental only.

    • A gain is reported on Schedule E, Part II or Schedule C, or

    • Self-employment income is reported on line 8z of Schedule 1 that is subject to self-employment tax, or

    • FS is 2 and the spouse has income that is subject to SE tax,

    Do not edit RPC "S" .

Combining Multiple Schedules F

  1. When the taxpayer submits more than two Schedules F, combine them to a total of two following the instructions in this subsection of the manual.

  2. Combine only the items to be transcribed and "X" those schedules not used.

  3. Use the EIN of the schedule showing the largest gross income. Gross income is found on line 9 of Schedule F.

  4. Use the NAICS Code provided by the taxpayer from the Schedule F being combined with the largest gross income. Gross income is found on line 9 of Schedule F.

  5. Combine only cash method schedules with cash method schedules and combine all accrual method schedules only with other accrual method schedules.

  6. When all schedules use the same method of accounting:

    1. Combine all schedules with gains.

    2. Combine all schedules with losses.

    3. Combine all schedules with the smallest gross income (line 9) when all schedules are either gains or losses.

Line B - North American Industry Classification System (NAICS) Code

  1. Refer to the following chart for editing the NAICS code.

    If Then
    Missing, incomplete or illegible, Take no action.
    More than one, Circle all but the first.
    Combining multiple Schedules F, Edit code from the combined Schedule F with the largest gross income.
    Dummying, Edit if taxpayer furnished a code.
    More than 6 digits long, Delete NAICS.

Line D - Employer Identification Number

  1. Circle the EIN when it is not nine digits or if it includes letters.

Line 9 - Gross Income

  1. Compute and edit line 9 from the amounts in the right column, lines 1c through 8 when line 9 is blank.

  2. "X" line 9 when an amount is present andboth of the following apply. (See Figure 3.11.3-96):

    1. Lines 1a through 8 are blank, and

    2. Line 50 has a significant amount.

    Figure 3.11.3-96

    This is an Image: 33440096.gif

    Please click here for the text description of the image.

Lines 32a through 32f - Other Expenses (Not Transcribed)

  1. Edit the misplaced item(s) to the correct T-Line when any transcribed items are included in "Other Expenses" .

    Note:

    Only move amounts when the wording exactly matches the wording on the T-Line.

Line 33 - Total Expenses

  1. Compute and edit line 33 when it is blank. Compute line 33 from lines 10 through 32f.

Line 36b - "At Risk" Question

  1. Form 6198 must be attached if any Schedule F has a loss ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the box on 36b is marked. Correspond if missing. For Form 6001 use box S, for Form 3531 use box 11-14.

Schedule R - Credit for the Elderly or the Disabled

  1. The instructions provided in this subsection of the manual are for editing Schedule R. These instructions include:

    • General editing procedures

    • Perfecting the filing status and age boxes

    • Perfecting taxable disability income amounts

    • Computing nontaxable pension, annuity, or disability income

  2. The following lines on Schedule R are T-Lines and T-Compute lines:

    T-Lines T-Compute Lines
    • Lines 1 through 9

    • Line 11, Part III

    • Line 13c, Part III

    • Line 13c, Part III

Schedule R - General Editing Procedures

  1. Edit Sequence Code "16" in the upper-right margin of Schedule R if not preprinted.

  2. Only one Schedule R may be processed. If more than one Schedule R is attached, process the first Schedule R and "X" the remaining Schedule(s) R.

  3. Do not correspond for missing information when line 15 Form 1040 is (or can be determined to be) zero or a negative amount. Instead, X the schedule.

  4. Do not "X" Schedule R when the only entries present are in Part I.

Filing Status and Age Box

  1. No action is necessary when the taxpayer marked more than one box.

  2. Correspond when all the boxes are blank. For Form 6001 use box P, for Form 3531 use box 18.

Line 11 - Taxable Disability Income

  1. Line 11 must have an entry if the taxpayer marked box 2, 4, 5, 6, or 9 in Part I. When line 11 is blank, take the following actions:

    1. If box 2, 4, 5, or 9 in Part I has been marked, edit the taxable amount of disability income from Form 1040 or an attachment (e.g., Form 1099-R, Code 3 in box 7).

    2. If box 6 in Part I has been marked, edit the taxable amount of disability income from Form 1040 plus $5,000.

    3. If the amount cannot be determined, correspond. For Form 6001 use box P, for Form 3531 use box 18.

Line 13c - Nontaxable Pension, Annuity, or Disability Income

  1. Compute and edit line 13c when it is blank.

  2. Compute line 13c from lines 13a and 13b, or from an attachment.

  3. Correspond for the amount of nontaxable pension, annuity, or disability income when you are unable to compute line 13c by subtracting the taxable income from the gross income. For Form 6001 use box P, for Form 3531 use box 18.

    Exception:

    Do not correspond if you can determine that line 13c is (or can be determined to be) zero or negative (e.g., when lines 17 and 18 are equal).

Schedule SE - Self-Employment Tax

  1. The instructions provided in this subsection of the manual are for editing Schedule SE. These instructions include:

    • Sequencing and combining multiple Schedules SE

    • Perfecting the Taxpayer Identification Number (TIN)

    • Editing the SE Method Code

  2. The following lines on the Schedule SE are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • TIN

    • Lines 1a through 3

    • SE Quarters Covered - edited to the right of line 4c

    • Line 5a

    • Line 8d

    • SE Farm Code (Method Code) - edited in the center-bottom margin of page 1

    • Lines 3

    • Line 8d

Schedule SE - General Editing Procedures

  1. Only two Schedules SE can be processed. One Schedule SE for each of:

    • The primary taxpayer

    • The secondary taxpayer

  2. If only one processable Schedule SE is present, edit Sequence Code "17" if not preprinted.

  3. If two processable Schedules SE are present - one for the primary taxpayer and one for the secondary taxpayer - edit the Sequence Code as follows:

    1. Edit "17" if not preprinted, for the primary taxpayer.

    2. Edit "18" for the secondary taxpayer.

  4. Combine multiple Schedules SE when there is more than one Schedule SE for any one taxpayer. Delete those schedules not used.

  5. When one Schedule SE is submitted for two taxpayers:

    1. Allocate each taxpayer's Schedule SE amounts to two separate dummy Schedules SE. "X" the Schedule SE with the combined taxpayer liability.

    2. Correspond for the correct allocation, if it cannot be determined. For Form 6001 use box U, for Form 3531 use box 17.

  6. Edit RPC "S" and RPC "B" and delete Schedule SE when the only income on Schedule SE is from ministerial duties and any of the following conditions are present:

    1. The taxpayer indicates that they are not liable for self-employment tax.

    2. The taxpayer indicates that Form 4029 or Form 4361 has been filed.

    Exception:

    Do not edit RPC "S" if the FS is "2" and the spouse is liable for SE tax.

  7. "X" the EIC amount on line 27 Form 1040 and edit RPC "B" when EIC is claimed and there is a clear indication that an exemption from SE tax was given on an approved Form 4029 or Form 4361. Delete the amount when Form 4029 or Form 4361 is attached or a notation of "Exempt/Notary," "Amish," or "Mennonite" is present.

Schedule SE

  1. Use the instructions in this subsection for editing Schedule SE.

Social Security Number
  1. Edit the TIN from the caption on Form 1040 when the TIN is missing, illegible, or other than nine digits. If the TIN is not present in the caption, search Form(s) W-2 and other attachments for the missing TIN. (See Figure 3.11.3-98.)

    Note:

    Also edit the missing TIN to the caption. See IRM 3.11.3.9.2 for instructions on perfecting the caption. Edit a newly issued ITIN, if necessary.

  2. Use the caption to determine the correct TIN when there are two TINs but only one name. Circle the TIN which does not match the taxpayer's name.

  3. Correspond for a missing TIN if it cannot be perfected or obtained through research, with the exception of rejected ITIN/Form W-7. For Form 6001 use box U, for Form 3531 use box 17.

Lines 1a and 2 - Income
  1. Perfect lines 1a and 2 when they are both blank. Perfect them as follows:

    1. Edit net profit or loss from Schedule(s) F on line 1a.

    2. Edit net profit or loss for farm partnership from Schedule E on line 1a.

    3. Edit net profit or loss from Schedule C on line 2.

    4. Edit net profit or loss for non-farm partnership from Schedule E on line 2.

    5. If line 3, Schedule SE includes income from line 8z Schedule 1, include the amount on line 2.

    Exception:

    Do not compute an income amount or perfect lines 1a and 2 when the taxpayer has used the optional method in Part II to figure their net earnings. (See Figure 3.11.3-99.)

    Note:

    Include Schedule C, Schedule E and/or Schedule F income only for the taxpayer that is filing the Schedule SE.

Line 3 - Net Earnings or Loss
  1. Compute and edit line 3 when it is blank and there are amounts present which lead to a total.

  2. Divide the amount on line 4a by .9235 and edit the result on line 3 (see Figure 3.11.3-97) when all the following conditions are present:

    • Line 4a has an entry, and

    • Lines 1a, 1b, 2, and 3 are blank, and

    • Line 3 cannot be determined from attachments

  3. Edit the amount on line 4b to line 3 when both of the following conditions are present (See Figure 3.11.3-99):

    • Line 4b has a significant entry, and

    • Lines 1a, 2, 3, and 4a are blank, negative, zero, or a dash

    Reminder:

    SE Method Code may be required. See IRM 3.11.3.26.2.7.

  4. "X" Schedule SE when the amount on line 3 is a negative amount or it is less than $434.

    Exception:

    Do not "X" Schedule SE when line 5a has an entry of $109 or more.

  5. Adjust the line 2 amount to exclude any income identified as "Exempt/Notary" income when the taxpayer has:

    1. Written "Exempt/Notary" and an amount to the left of line 3 and,

    2. Subtracted that amount from the total of lines 1a, 1b, and 2.

    Figure 3.11.3-97

    This is an Image: 33440097.gif

    Please click here for the text description of the image.

Line 4c - Margin SE Quarters Covered
  1. Refer to the short period return instructions in IRM 3.11.3.6.2.18 when Schedule SE is attached to a short period return. A code representing the number of quarters covered by a short period return is edited in the margin to the right of line 4c.

Line 5a - Church Employee Self-Employment Wages
  1. Process Schedule SE regardless of the line 3 amount when line 5a has an entry of $109 or more.

  2. Divide the amount on line 5b by .9235 and edit the result on line 5a when both of the following conditions are present:

    • Line 5a is blank, and

    • Line 5b has an entry.

Line 8d - Total Social Security Wages and Tips
  1. When the amount on line 8d is more than $160,200 and lines 8b and 8c are blank, add the SE taxpayer's Form(s) W-2 Social Security wages and tips subject to Social Security tax withholding.

    If lines 8b and 8c are blank and Then
    The total of all Social Security wages and tips on Forms W-2 is $160,200 or less, Edit the total income on line 8d.
    There is no Form W-2 income, and line 8a is also blank. "X" line 8d.

  2. Take no action when the amount on line 8d is more than $160,200 and lines 8b and 8c have significant entries.

  3. Compute and edit line 8d when it is blank, dash or zero, and one of the following conditions is present:

    1. There are entries leading to a total, or

    2. The taxpayer has Form W-2 wages and/or tips (boxes 3 and 7) subject to Social Security Tax withholding.

    Note:

    Only edit the amount from the "Social Security Wages" box, and/or "Social Security Tips" box if there is also an amount in the box for "Social Security Tax Withheld" . (See Figure 3.11.3-98.)

    Figure 3.11.3-98

    This is an Image: 33440098.gif

    Please click here for the text description of the image.

Bottom Center Margin - SE Method Code
  1. The SE Method Code is edited in the bottom-center margin of Schedule SE, page 1.

  2. Edit SE Method Code "1" when both of the following conditions are present:

    1. Line 15 is blank or zero, and

    2. The significant entries on lines 4b and 17 are the same.

  3. Edit SE Method Code "2" . See Figure 3.11.3-99, when both of the following conditions are present:

    1. There are any significant entries on lines 15 or 17 and

    2. SE Method Code "1" has not been assigned.

  4. Do not code the SE Method Code when it can be determined the entries on lines 15 or 17 are misplaced.

    Figure 3.11.3-99

    This is an Image: 33440099.gif

    Please click here for the text description of the image.

Prior Year Schedule SE

  1. For TY19 and prior, when the taxpayer completes both Sections A and B of the Schedule SE, reporting the same self-employment income for the same taxpayer, delete Section A of Schedule SE.

  2. When computing or verifying a line 8d entry - for tax years 2022 through 2014 - use the chart below to determine the maximum Social Security wage amount.

    Tax Year Maximum Social Security Wage
    2022 $147,000
    2021 $142,800
    2020 $137,700
    2019 $132,900
    2018 $128,400
    2017 $127,200
    2016 $118,500
    2015 $118,500
    2014 $117,000

Form 1116 - Computation of Foreign Tax Credit, General Editing Procedures

  1. The instructions provided in this subsection of the manual are for editing Form 1116. These instructions include:

    • General editing and perfecting procedures

    • Coding for additional unprocessed Forms 1116

Form 1116

  1. The following lines on the Form 1116 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • To the right of Part I

    • Line 1a

    • Lines 6, 7 and 8

    • Line 14

    • Lines 16 and 17

    • Lines 21 through 24

    • Lines 34 and 35

    • Line 1a

    • Lines 6, 7 and 8

    • Line 14

    • Line 17

    • Line 21

    • Line 23

    • Line 35

  2. Edit Sequence Code "19" in the upper-right margin of Form 1116 if not preprinted.

  3. Taxpayers may attach Form(s) 1116 to support their Alternative Minimum Tax amount or for other informational purposes.

    1. "X" Form(s) 1116 marked "Alternative Minimum Tax" , "AMT" , "ALT MIN Tax" , "AMT-CR" , "8801" , "State Copy" , or" Information Only" .

  4. Correspond for Form 1116 when Schedule 3, line 1, has an amount more than $300 (more than $600 for married filing joint) and Form 1116 has no significant T-line entries present or edited on line 7, 8, 24 or 35.

  5. Only one Form 1116 can be processed. If more than one Form 1116 is present, determine which form to process in the following priority:

    1. Process the first form that has entries in Part IV.

    2. Process the first form attached, when Part IV is blank on all forms.

    Note:

    When there is more than one Form 1116 to process, "X" the forms not used.

  6. Edit the total number of additional Forms 1116 attached in the margin to the right of Part I. This number represents the number of forms attached, but not being processed. For example, if three Forms 1116 are attached to the return, edit "2" in the margin. One of the three Forms 1116 will be processed and the other two forms are additional.

    Note:

    To determine the total number of additional Forms 1116 attached, count the number of additional pages one only.

    1. Edit "9" when more than nine additional forms are attached.

    2. Do not count Forms 1116 deleted according to IRM 3.11.3.27.1(3)a, above.

  7. The presence of Form 1116 alone does not qualify the return for treatment as an international return. DO NOT FORWARD RETURNS TO AUSPC SOLELY BECAUSE A FORM 1116 IS ATTACHED.

Line 7 - Taxable Income from Foreign Sources
  1. Compute and edit line 7 by subtracting line 6 from line 1a when line 7 is blank and there are entries leading to a total.

Line 8 - Total Foreign Taxes Paid or Accrued
  1. Compute and edit line 8 when it is blank and there are entries leading to a total. Compute the line 8 entry by adding lines A through C in column (u).

Line 14 - Total Foreign Taxes Available for Credit
  1. Compute and edit line 14 when it is blank and there are entries leading to a total. Compute line 14 by adding lines 11, 12, and 13.

Line 17 - Net Foreign Source of Taxable Income
  1. Compute and edit line 17 when it is blank and there are entries leading to a total. Compute line 17 by adding amounts on lines 15 and 16.

Line 21 - Maximum Allowable Credit
  1. Compute and edit line 21 when it is blank and there are entries leading to a total. Compute line 21 by multiplying line 20 by line 19.

Line 23 - Total Limitations
  1. Compute and edit line 23 when it is blank and there are entries leading to a total. Compute line 23 by adding lines 21 and 22.

Line 24 - Gross Foreign Tax Credit
  1. Edit the amount from line 14 or line 23, whichever is smaller when line 24 is blank.

  2. Take no action if line 14 or line 23 is blank, dash, or zero.

Line 35 - Form 1116 (Foreign Tax Credit)
  1. Compute and edit line 35 when it is blank and there are entries leading to a total. Edit the amount from line 24 when lines 25 through 31 are blank, dash, or zero.

Prior Year Form 1116

  1. Use the chart below to determine the correct editing of Form 1116.

    If the tax year is Then
    1988 or 1987 and an amount of ≡ ≡ ≡ ≡ ≡ or more is claimed and the box in Part III is marked (Virgin Island Indicator), Route for transshipment to AUSPC.

    Exception:

    AUSPC only: Route to Receipt and Control for rebatching.

    1986 and prior, "X" the Form 1116.

Schedule J - Farm Income Averaging

  1. The instructions provided in this subsection of the manual are for editing Schedule J.

  2. The following lines on the Schedule J are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Line 2a

    • Line 2b

    • Line 8

    • Line 12

    • Line 16

    • Line 19

    • Line 20

    • Line 21

    • There are no T-Compute lines for this form.

Schedule J - General Editing Procedures

  1. Edit Sequence Code "20" in the upper-right margin of Schedule J if not preprinted.

  2. Only one Schedule J can be processed. When multiple forms are present take the following actions:

    1. Combine all related T-Line amounts.

    2. "X" those forms not being used.

Form 2441 - Credit for Child and Dependent Care Expenses

  1. The instructions provided in this subsection of the manual are for editing Form 2441. These instructions include:

    • General editing and perfecting procedures

    • Perfecting the care provider's information

  2. The following lines on Form 2441 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Checkbox A

    • Checkbox B (TY22 and later)

    • Checkbox B (TY21 only edited as "ABD" )

    • Line 1, column (a) Care Provider's Name Control

    • Line 1, column (c) Care Provider's TIN

    • Line 1, column (d), Household Employee Code (TY22 and later

    • Line 2, Qualifying Persons (not edited)

    • Line 2, column (a) - Qualifying Person's Name Control

    • Line 2, column (b) - Qualifying Person's TIN

    • Line 2, column (c) - Disabled Indicator

    • Line 2, column (d) - Qualified Expenses)

    • Lines 3 through 5

    • Line 9b

    • Line 12

    • Line 16

    • Line 25

    • Line 26

    • Line 3

    • Line 26

Form 2441 - General Editing Procedures

  1. Edit Sequence Code "21" in the upper-right margin of Form 2441 if not preprinted.

  2. Only one Form 2441 can be processed.

    1. Combine multiple forms when present

    2. Delete those forms not used

  3. Do not follow the instructions for perfecting Part II (lines 2 through 5) and do not "X" Form 2441 when both of the following are present:

    1. There are any entries in Part I and/or Part III

    2. The child care credit has not been claimed on line 2, Schedule 3.

  4. Do not correspond for missing information when line 15 Form 1040, is (or can be determined to be) zero or a negative amount. Instead, "X" Form 2441.

  5. When "see attached" or similar statement is present, edit any required T-Lines from the attachment.

Care Provider's Information
  1. The taxpayer enters information about the care provider on line 1. Required care provider information consists of:

    • Column (a) - name

    • Column (c) - TIN

    • Column (d) - Household Employee Checkbox

      Exception:

      Only Column (e) is required for tax-exempt entities.

  2. Correspond for any missing required provider information when you are corresponding for other missing return items, unless only the TIN is missing and one of the exceptions listed below applies:

    1. The taxpayer has exercised due diligence, or

    2. The provider is a tax-exempt organization, or

    3. The provider is a foreign citizen with no US address identified by "LAFCP" (Living Abroad Foreign Care Provider) or similar statement identifying provider as a foreign citizen.

    Exception:

    Do not correspond for the missing TIN when more than one provider name is entered on line 1, and at least one provider's TIN is present. When corresponding with Form 6001 use box P, with Form 3531 use box 23.

  3. The provider's TIN is not required when the taxpayer has exercised "due diligence" in their attempt to comply with the requirement. Due diligence applies only to notations that indicate either of the following:

    1. The provider has moved and the taxpayer is unable to find the provider to get the TIN.

    2. The provider has refused to give the TIN to the taxpayer.

    Note:

    Any notation other than those listed in a) and b) are unacceptable due diligence statements. The following notations are examples of unacceptable due diligence statements.
    •"unable" to get the TIN
    •TIN is "not available"
    •TIN is "unknown"
    •"pending"
    •"applied for"

    Note:

    Edit SPC "D" when an indication of due diligence is present, a due diligence statement is attached or the provider is identified by "LAFCP" .

    Exception:

    Do not edit SPC "D" when more than one provider name is entered on line 1, and at least one provider's TIN is present.

    Figure 3.11.3-100

    This is an Image: 33440100.gif

    Please click here for the text description of the image.

  4. The provider's TIN is not required when the provider is a "tax-exempt" organization. Tax-exempt organizations include, but are not limited to, the following:

    • Religious: i.e., churches, synagogues, mosques, or temples

    • Educational: i.e., schools - both public and private -- including Montessori schools

    • Civic League

    • Charitable: i.e., PTA, Alumni Associations, Chapters of the Red Cross, Boys and Girls Clubs

    • Pleasure, Recreational or Social Clubs: i.e., YMCA/YWCA or YMHA/YWHA or "The Y"

    • Federal/state/local government agency

    • Other nonprofit organizations

    Note:

    Edit SPC "D" when the Child Care Provider is Tax Exempt or "LAFCP" is indicated.

    Exception:

    Do not edit SPC "D" when more than one provider name is entered on line 1, and at least one provider's TIN is present.

  5. "X" the amount on line 3 (see Figure 3.11.3-101) when all the following apply:

    1. The provider is not a tax-exempt organization, and

    2. The provider is not a foreign citizen, and

    3. The provider's TIN is missing, and

    4. Other correspondence is not required, and

    5. Due diligence does not apply. See paragraph (3) above.

    Exception:

    Do not "X" the line 3 amount when more than one provider name is entered on line 1, and at least one provider's TIN is present.

    Figure 3.11.3-101

    This is an Image: 33440101.gif

    Please click here for the text description of the image.

  6. "X" the amount on line 3 when the Child Care Provider TIN is invalid, (all nine numbers are the same or sequential, (i.e., "111111111" or "123456789" )), due diligence does not apply and there are no other providers listed with a valid TIN.

  7. "X" the amount on line 3 when the Child Care Provider TIN matches the primary taxpayer, spouse or a dependent of the taxpayer’s TIN.

  8. Only one Care Provider and TIN is to be edited. If more than one is present, edit the first one with both Name and TIN information that is not tax exempt or invalid. (See Figure 3.11.3-102.) Underline the Care Provider's name control, unless no TIN is present.

    Note:

    Do not edit the provider name control when it is identified as any of the following:

    • The taxpayer has exercised due diligence, or

    • The provider was a tax-exempt organization, or

    • The provider was a foreign citizen with no US address and the child care was provided in a foreign country.

  9. Refer to the information in the following tables to edit BMF name controls when Document 7071-A is not available:

    Note:

    When a name listed in Part I has an EIN instead of an SSN, follow BMF editing procedures and edit the last name as the name control.

    BMF Name Control Valid Characters:
    • Alpha (A-Z)

    • Numeric (0-9)

    • Hyphen ( - )

    • Ampersand (&)

    Overlapping BMF Name Control Rules - When the organization name contains both the words "TRUST" and "FUND" , and:
    • The name of a corporation is present, use the first four characters of the corporation name.

    • An individual's name is present, use the first four characters of the individual's surname.

    Business Name(s) Name Control General BMF Name Control Rule
    Cedar Cleaning CEDA The Name Control consists of up to four alpha or numeric characters.
    Can4U CAN4
    J&B Sanding J&BS The ampersand (&) and the hyphen (-) are the only special characters allowed in the Name Control.

    Note:

    If an invalid character is used in the name line, ignore the special character when establishing the Name Control.

    Elm-2-go ELM-
    IU.com IUCO
    833.com 833C
    IC2 IC2 The Name Control can have less, but no more than, four characters. Blanks may be present only at the end of the Name Control.
    The Hemlock Cafe HEML Omit the word "The" when it is followed by more than one word or abbreviation. Include the word "The" when it is followed by only one word.
    The Hawthorn THEH
    The Hawthorn P.A. HAWT
    IC2 dba Fir Fermenting IC2 Do not include the letters "dba" (doing business as) or "fbo" (for benefit of) as part of the Name Control.

    Figure 3.11.3-102

    This is an Image: 33440102.gif

    Please click here for the text description of the image.

Line 2(a) - Qualifying Person's Name Control
  1. Up to 2 Qualifying Person’s name control (and TIN) will be transcribed. When less than 2 Qualifying Persons are present on line 2 and "See Attached" is noted by the taxpayer, edit additional Qualifying Persons (up to 2) from the attachment.

  2. When the qualifying person's last name is not present on line 2, column (a), edit the name controls for the first 2 TINs in the following priority:

    1. Form 1040, Dependents area, Column (1)

    2. From Schedule EIC

    3. From any attachments

    4. From the primary taxpayer's name control

    Note:

    Edit SPC "L" when more than two dependents are claimed on Form 2441 and/or attachments.

    Figure 3.11.3-103

    This is an Image: 33440103.gif

    Please click here for the text description of the image.

Line 2(b) - Qualifying Person's TIN
  1. Perfect the qualifying person's TIN on line 2, column (b), when missing, incomplete, or illegible.

  2. Edit the qualifying persons missing TIN in the following priority:

    1. Form 1040, Dependents area, Column (2)

    2. From Schedule EIC

    3. From attachments

  3. "X" the qualifying person's name when the TIN provided is invalid or cannot be perfected from the return or attachments.

  4. When corresponding for other missing return items, correspond for any missing qualifying person's information. When corresponding with Form 6001 use box P, with Form 3531 use box 23.

Line 3 - Qualified Expenses
  1. If line 3 is blank, take one of the following actions in the priority listed below:

    1. Compute and edit the total of line 2 column (d) amounts.

    2. Edit the line 1e amount to line 3, when only one child is present on line 2.

    3. Edit the amount from line 31 of Form 2441, if present.

    4. Correspond for the line 3 amount when line 2, column (d) is blank and the amount cannot be determined from the Form 2441 or attachments. When corresponding with Form 6001 use box P, with Form 3531 use box 18.

      Exception:

      Do not correspond when the credit has not been claimed on line 2, Schedule 3, or when there is no significant amount on line 17, Form 1040.

Lines 4 and 5 - Earned Income
  1. Line 4 must always have an entry. Line 5 must also have an entry when FS "2" .

    1. Line 4 is for the primary taxpayer's earned income.

    2. Line 5 is for the secondary taxpayer's earned income.

  2. If lines 4 and 5 have entries, line 5 is equal to line 4, and:

    • The filing status is 2, correct both lines to reflect only the primary taxpayer's income on line 4 and the spouse's income on line 5

    • The filing status is other than 2, take no action

  3. Edit a positive amount when required and line 4 or line 5 is blank, dash, or zero.

    1. Perfect line 4 when required by editing the amount from line 18 of Form 2441.

    2. Perfect line 5 when required by editing the amount from line 19 of Form 2441.

  4. When lines 4 and/or 5 cannot be edited from lines 18 and 19, edit all earned income from the following, see Figure 3.11.3-104

    • Line 1a-1h, Form 1040 (use Form(s) W-2 when FS 2 and both taxpayers have income on line 1).

    • HSH present anywhere on the return.

    • Self-employment income listed on line 9, Schedule 1.

    • Schedule C

    • Schedule E, Part II

    • Schedule F

    • Form 1099-MISC (Box 7 on TY19 and prior)

    • Form 1099-NEC (TY20 and later)

    Note:

    If it is obvious the combined total of both taxpayers' income has been entered on line 4 and/or line 5, correct the entry to reflect only the primary taxpayer's (line 4) or spouse's (line 5) income.

    Exception:

    If there is an indication that at least one taxpayer was a student or disabled, determine the correct entry using the instructions in IRM 3.11.3.29.1.5(7).

    Figure 3.11.3-104

    This is an Image: 33440104.gif

    Please click here for the text description of the image.

  5. "X" the entry when either line 4 or 5 is a negative amount.

  6. Use the instructions in (3) above to perfect lines 4 and 5 when the amount entered on either line 4 or line 5 equals the amount of EIC on line 27 Form 1040.

  7. If the FS is "2" and there is an indication that either taxpayer was a student or disabled, and either line 4 or 5 must be perfected, take the following actions:

    If the number of months the taxpayer was a student or disabled is Then
    Present and there is 1 qualified person, Multiply the number of months by $250 and edit the result on line 4 or line 5, whichever is blank.
    Present and there are 2 or more qualified persons, Multiply the number of months by $500 and edit the result on line 4 or line 5, whichever is blank.
    Not present, Correspond for the number of months. If using Form 6001, use fill-in "8" , per Exhibit 3.11.3-18. If using Form 3531, mark box 23.

    Exception:

    The taxpayer must have been a student for all or part of five or more calendar months during the tax year to qualify for the credit. Do not perfect lines 4 or 5 when the taxpayer writes "Student" and fewer than five months is indicated.

  8. Correspond when lines 4 and/or 5 (FS "2" ) cannot be perfected with a positive entry. When corresponding with Form 6001 use box P, with Form 3531 use box 18.

    Exception:

    Do not correspond when the credit has not been claimed on line 2, Schedule 3 or when there is no significant amount on line 16 or line 17 of a computed Form 1040.

Line 9b - Prior Year Expenses (PYE)
  1. If an amount is claimed on line 9b, Form 2441 Worksheet A or statement must be attached. If not attached, "X" the amount.

    Note:

    The statement must include the name and TIN of the person for whom they paid the prior year’s expenses, the name and TIN of the care provider, and how the credit was computed.

Line 26 - Dependent Care Taxable Benefits
  1. If line 26 is blank, compute and edit by subtracting line 25 from line 23.

Prior Year Form 2441

  1. For TY21, edit Check Box B as "ABD" .

  2. Use the following chart when coding Forms 2441.

    If the tax year is Then
    1999 and prior, Do not edit the Provider care information.
    1996 and prior, Do not do any of the following:
    • "X" line 3 on Form 2441 when the provider TIN is missing.

    • Edit for the Name Control and TIN.

    1975 and prior, "X" Form 2441. (Expenses for dependent and child care must be claimed on Schedule A).

Form 3800 - General Business Credit

  1. The instructions provided in this subsection of the manual are for editing Form 3800. These instructions include the general editing and perfecting procedures for Form 3800.

  2. The following lines on the Form 3800 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Part I, Lines 1 through 5

    • Part II, Lines 24 - 26

    • Part II, Line 36

    • Part III, Checkbox I (TY21-TY22 only)

    • Part III, Line 1a, column j

    • Part III, Line 1b column b

    • Part III, Line 1b, columns g - j

    • Part III, Line 1c, column j

    • Part III, Line 1d, column b

    • Part III, Line 1d, column g

    • Part III, Line 1d, column j

    • Part III, Line 1e, column j

    • Part III, Line 1f, column b

    • Part III, Line 1f, column g

    • Part III, Line 1f, column j

    • Part III, Line 1g, column b

    • Part III, Line 1g, columns g - j

    • Part III, Line 1h, column j

    • Part III, Line 1i, column j

    • Part III, Line 1j, column j

    • Part III, Line 1k, column j

    • Part III, Line 1l, column j

    • Part III, Line 1m, column j

    • Part III, Line 1n, column j

    • Part III, Line 1o, column b

    • Part III, Line 1o, column h-j

    • Part III, Line 1p, column j

    • Part III, Line 1r, Column j

    • Part III, Line 1s, column b

    • Part III, Line 1s, column g

    • Part III, Line 1s, column j

    • Part III, Line 1t, column j

    • Part III, Line 1u, column b

    • Part III, Line 1u, column g

    • Part III, Line 1u, column j

    • Part III, Line 1w, column j

    • Part III, Line 1x, column b

    • Part III, Line 1x, column g - j

    • Part III, Line 1y, column j

    • Part III, Line 1aa, column j

    • Part III, Line 1bb, column j

    • Part III, Line 1cc, column j

    • Part III, Line 1dd, column j

    • Part III, Line 1ee, column j

    • Part III, Line 1ff, column j

    • Part III, Line 1zz, column j

    • Part III, Line 3, column j

    • Part III, Line 4a, columns b, g, j

    • Part III, Line 4e, columns b, g, j

    • Part III, Line 4h, column j

    • Part III, Line 4j, column j

    • Part III, Line 4k, column j

    • Part III, Line 5, column j

    • Center Bottom Margin, page 3

    • From F 3468, Part VII, Line 1i Bottom right margin, page 3

    • Line 25

    • Line 36

Form 3800 - General Editing Procedures

  1. Taxpayers file Form 3800 when they have any of the following:

    • More than one of the general business credits (other than the empowerment zone employments credit).

    • A carryback or a carryforward of any of the credits.

    • Any of the general business credits (other than the low-income housing credit or the empowered zone employment credit) from a passive activity.

  2. Edit Sequence Code "22" in the upper-right margin of Form 3800 if not preprinted.

  3. Only one Form 3800 can be transcribed. If multiples are present, process the one that shows the largest dollar amount on line 6, Part IV, page 6. "X" any other forms not used.

  4. Correspond for all identified missing source forms to support entries in Part III and Part IV of Form 3800.

    Exception:

    Do not correspond for missing forms when any of the following conditions apply:
    • The taxpayer provided the EIN of the pass-through entity in column d, Part III and Part IV, Form 3800.
    • The taxpayer indicates that they are not claiming the credit.
    • If Part III or Part IV, line 1r, column j, Form 3800, has an entry, correspond for a missing Form 8910 unless a Schedule E is attached with entries in Part II or III.

  5. When an entry is present on Form 3800, Part V, Column B, edit a Data Indicator of "1" in the center bottom margin of page 3.

  6. If Form 3468, Investment Credit, is attached to support an entry on Part III, line 4k, column j, Form 3800:

    1. Edit the amount from Form 3468, Part VII, line 1i, to the bottom-right margin of page 3, Form 3800.

    2. An entry on Part VII, line 1i requires an entry on line 1k, or the first page of NPS Form 10-168a, Historic Preservation Application, must be attached. If missing, correspond with Form 3531/6001 using fill-in 33, per Exhibit 3.11.3-18.

    Exception:

    Do not correspond, if the taxpayer:
    -Provides the number from the NPS certificate on Part VII, line 1k, Form 3468, or
    - Indicates the credit is derived from a partnership, S-Corporation, estate or trust.

  7. When Form 8826, Disabled Access Credit, is attached, no Schedule C, Schedule E or Schedule F is attached, and Schedule 1, line 9, is blank, edit Unallowable Code"77" .

    Note:

    There is a ≡ ≡ ≡ ≡ tolerance on line 1e attached to Unallowable Code "77" .

Prior Year Form 3800

  1. For TY22 and prior, do not correspond for missing forms when Part III, box C is marked indicating a credit carryforward.

Form 4137 - Social Security and Medicare Tax on Unreported Tip Income

  1. The instructions provided in this subsection of the manual are for editing Form 4137. These instructions include:

    • General editing and perfecting procedures

    • Sequencing and combining multiple Forms 4137

    • Perfecting the Taxpayer Identification Number (TIN)

  2. The following lines on Form 4137 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Taxpayer TIN

    • Lines 1A through 1E, Columns (a) through (d)

    • Line 2 and 3

    • Line 5

    • Line 6

    • Line 8

    • Line 2

Form 4137 - General Editing Procedures

  1. Only two Forms 4137 can be processed per return. One Form 4137 for each of:

    • The primary taxpayer

    • The secondary taxpayer

  2. Edit Sequence Code "24" in the upper-right margin of Form 4137 if not preprinted when there is only one processable Form 4137 attached.

  3. When there are two processable Forms 4137 attached and one is for the primary taxpayer and one is for the secondary taxpayer:

    1. Edit Sequence Code "24" if not preprinted, for the primary taxpayer.

    2. Edit Sequence Code "25" for the secondary taxpayer.

  4. Combine multiple Forms 4137 when the taxpayer submits more than one Form 4137 for any one taxpayer. Delete those forms not used.

  5. If one Form 4137 was submitted for two taxpayers take one of the following actions:

    1. Allocate the proper amounts to two dummy Forms 4137. "X" the Form 4137 with the combined taxpayer amounts. Delete those forms not used.

    2. Correspond when the proper allocation cannot be determined. When corresponding with Form 6001 use box U, with Form 3531 use box 17.

  6. If the taxpayer provided names of employers on line 1, column (a), but fails to provide the associated EINs on line 1, column (b), edit the missing EIN from attachments, if possible. Otherwise, Correspond. When corresponding with Form 6001 use box P, with Form 3531 use box 18.

Taxpayer Identification Number (TIN)
  1. Edit the TIN of the taxpayer filing Form 4137 from the caption area of Form 1040 when the TIN is missing, illegible, or other than nine digits. If the TIN is not present in the caption, search Form(s) W-2 and other attachments for the missing TIN.

    Note:

    Also edit the missing TIN to the caption.

  2. Use the caption to determine the correct TIN when there are two TINs but only one name on Form 4137. Circle the TIN which does not match the taxpayer name.

Line 8 - Total Social Security Wages and Tips
  1. Compute and edit line 8 when it is blank and the taxpayer has Form W-2 wages and tips subject to Social Security Tax withholding.

    Note:

    Only edit the amount from the "Social Security Wages" box 3 and "Social Security Tips" box 7 if there is also an amount in the box for "Social Security Tax Withheld" .

  2. If the amount on line 8 is more than $160,200, add the Form 4137 taxpayer's Form W-2 wages and tips subject to Social Security Tax withholding.

    If the Then
    Total of all wages and tips on Form(s) W-2 is $160,200 or less, Edit the total income amount from Form(s) W-2 to line 8.
    Taxpayer has no Form W-2 income, "X" line 8.

Prior Year Form 4137

  1. When computing or verifying a line 8 entry-for tax years 22 through 14 - use the chart below to determine the maximum Social Security amount.

    Tax Year Maximum Social Security Wage
    2022 $147,000
    2021 $142,800
    2020 $137,700
    2019 $132,900
    2018 $128,400
    2017 $127,200
    2016 $118,500
    2015 $118,500
    2014 $117,000

  2. For TY 2022 through 2014, "X" Form 4137 when the amount on line 1a, Form 1040, is greater than or equal to the maximum Social Security wage amount.

  3. For TY06 and prior, if the taxpayer has changed the word "tips" to "wages" , dummy a Form 8919 and "X" Form 4137.

Form 4684 - Casualties and Thefts

  1. The instructions provided in this subsection of the manual are for editing Form 4684. These instructions include the general editing and perfecting procedures for Forms 4684.

Form 4684

  1. The following lines on Form 4684 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Line
    • FEMA Disaster Declaration Number

    • Line 1, Property A Zip Code

    • Line 13

    • Line 14

    • Line 16

    • Line 13

    • Line 14

    • Line 16

  2. Edit Sequence Code "26" in the upper-right margin of Form 4684 if not preprinted.

  3. Only one Form 4684 is processable:

    1. Process the first Form 4684 with an entry present or edited on line 16.

    2. Process the first Form 4684 with a T-line entry when there are no Form 4684 with an entry on line 16.

    3. Delete all forms not to be transcribed.

    Note:

    For TY16 and later, edit FPC "D" when a federally declared disaster loss is claimed on Schedule A and Form 4684.

  4. "X" Form 4684 when either of the following conditions is present:

    • No significant entry is present or edited on T-lines.

    • Only page 2, 3 and/or 4 of Form 4684 is attached.

FEMA Disaster Declaration Number
  1. Delete the FEMA Disaster Declaration Number if:

    • Invalid, (e.g., begins or ends with letters other than "DR " or "EM" ),

    • Is made up of consecutive or repeating numbers,

    • Number is greater than 4900 for FEMA numbers beginning/ending with "DR" ,

    • Number is greater than 3700 for FEMA numbers beginning/ending with "EM" .

    (See IRM 3.11.3.18.1.8.)

    Note:

    A missing hyphen in the FEMA number is not considered incomplete. Do not delete the number when the hyphen is missing.

Line 1- Property A ZIP Code
  1. If present and other than 5 digits (or 5 plus 4), delete the Zip Code.

Line 13
  1. If blank, dash, or zero and there are entries leading to a total, compute and edit line 13 by adding all amounts on line 4.

Line 14
  1. If blank, dash, or zero and there are entries leading to a total, compute and edit line 14 by entering amount on line 12.

Line 16
  1. Compute and edit line 16 only when both of the following conditions are present:

    • Line 16 is blank and,

    • A significant entry is present on line 14.

    Note:

    Do not compute and edit line 16 when Form 4684 is disaster related. Edit FPC "D" if Federally declared disaster loss is claimed on Form 4684 and Schedule A.

Form 4797 - Sale(s) of Business Property

  1. The instructions provided in this subsection of the manual are for editing Form 4797. These instructions include the editing and perfecting procedures for Forms 4797.

  2. The following lines on Form 4797 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Lines 1a through 1c

    • Line 7 col g

    • Line 8 col g

    • Line 9 col g

    • Bottom Center Margin

    • Line 9 col g

Form 4797 - General Editing Procedures

  1. Edit Sequence Code "27" in the upper-right margin of Form 4797 if not preprinted.

  2. Only one Form 4797 is processable;

    1. Combine all related T-Line amounts and edit the total on one form.

    2. "X" all forms not to be transcribed.

      Note:

      Form 4797 may have more than one page 2 attached.

  3. Examine Part I and Part II columns (g), and Part III line 24, for gains from sales of animals. If any amounts are present:

    1. Compute and edit the total in the bottom center margin below Part II. (See Figure 3.11.3-105.)

    2. Use only positive amounts when computing the gain on the sale of animals.

  4. If line 9 is blank, take one of the following actions:

    1. If line 8 has an entry, subtract the line 8 amount from line 7. If the result is a positive amount edit the amount.

    2. If line 8 is not present, edit the positive amount from line 7. (See Figure 3.11.3-105.)

    Note:

    Never edit a zero or negative entry from line 7 to line 9. Never edit a positive entry from line 7 to line 9 when zero is present on line 9.

  5. "X" the Form 4797 when there is no significant amount on or edited to any of the T-Lines.

    Figure 3.11.3-105

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    Please click here for the text description of the image.

Prior Year Form 4797

  1. For TY1986 and prior, "X" Form 4797 when it is filed.

Form 4972 - Tax on Lump-Sum Distributions

  1. The instructions provided in this subsection of the manual are for editing Form 4972.

  2. The following lines on Form 4972 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Line
    • Lines 1 through 5b

    • Line 6

    • Lines 11 and 12

    • Line 18

    • Line 30

    • Line 12

Form 4972 - General Editing Procedures

  1. Edit Sequence Code "28" in the upper-right margin of Form 4972 if not preprinted.

  2. Only one Form 4972 can be processed. Combine multiple Forms 4972 onto the first Form 4972 having "Yes" entries in Part I. "X" any Forms 4972 not used.

  3. "X" Form 4972 when blank or the only entries present are in Part I.

  4. Edit RPC "G" when both of the following conditions are present:

    1. There is a significant amount on lines 6 or 8 of Form 4972 and

    2. Withholding is present on lines 25a-25d of Form 1040.

  5. Mark the "No" box on line 5b when the taxpayer has not answered the question on line 5b.

Prior Year Form 4972

  1. For TY1993 and prior, "X" Form 4972.

Form 5329 - Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts

  1. The instructions provided in this subsection of the manual are for editing Form 5329. These instructions include:

    • General editing and perfecting procedures

    • Coding the spousal indicator

    • Perfecting lines 17, 25, 33, 41, 49, 51 and 55 - Tax Due (to perfect Form 5329)

    • Editing the IRA Condition Code

  2. The following lines on the Form 5329 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Spousal Indicator - edited to the left of the form title

    • Line 4

    • Line 8

    • Line 17

    • Line 25

    • Line 33

    • Line 41

    • Line 49

    • Line 51

    • Line 55

    • Bottom-right margin, IRA Condition Code

    • Line 4

    • Line 8

    • Line 55

  3. If there are no significant entries on any T-lines, but amounts are present in any of Parts I through IX, do not "X" Form 5329. (See Figure 3.11.3-106.)

Form 5329 - General Editing Procedures

  1. Only two Forms 5329 can be processed per return. One Form 5329 for each of:

    • The primary taxpayer

    • The secondary taxpayer

  2. Edit the Sequence Code in the upper-right margin of Form 5329 if not preprinted.

  3. Edit Sequence Code "29" if not preprinted when there is only one processable Form 5329 attached to the return.

  4. When there are two processable Forms 5329 attached to the return, and one is for the primary taxpayer and one is for the secondary taxpayer:

    1. Edit Sequence Code "29" , if not preprinted, for the primary taxpayer.

    2. Edit Sequence Code "30" for the secondary taxpayer.

  5. Combine multiple Forms 5329 when the taxpayer submits more than one Form 5329 for any one taxpayer. Delete those forms not used.

  6. If line 8, Schedule 2, is blank and Form 5329 is present with only entity information present, "X" the Form 5329.

  7. Perfect Form(s) 5329 when amounts are present in Parts I through IX.

IRA Condition Codes
  1. Use the chart below to determine the correct IRA Condition Code editing. Edit the code in the lower-right margin of page 2 of Form 5329. If page 2 is not present, edit code on page 1 in the lower-right margin of page 1, Form 5329.

    If Then
    Reasonable cause for failure to pay the penalty is established (see the examples of reasonable cause criteria in Exhibit 3.11.3-9), Edit IRA Condition Code "30" .
    Amended Form 5329 with dummied Form 1040. Edit IRA Condition Code "32" .
    Reasonable cause for failure to file Form 5329 is established, Dummy Form 5329 and edit IRA Condition Code "33" .
    A waiver, "RC" is noted on line dotted portion of line 54, or a request for waiver, of tax on excess accumulation on a qualified retirement plan is present, Edit IRA Condition Code "35" .
    The Form 5329 is for a deceased taxpayer, Edit IRA Condition Code "37" .

Spousal Indicator (to perfect Form 5329)
  1. Edit the spousal indicator on joint returns only.

  2. Code the indicator to the left of the form title.

  3. The code indicates the taxpayer for whom the Form 5329 is filed. Code as follows:

    1. Edit a "1" for the primary taxpayer.

    2. Edit a "2" for the secondary taxpayer. (See Figure 3.11.3-106.)

    Exception:

    On joint return, if unable to determine which taxpayer is filing Form 5329, edit spousal indicator "1" .

    Figure 3.11.3-106

    This is an Image: 33440106.gif

    Please click here for the text description of the image.

Lines 17, 25, 33, 41, 49, 51 and 55 - Tax Due (to perfect Form 5329)
  1. Use the chart below to perfect entries on Form 5329 when lines 17, 25, 33, 41, 49, 51 and 55 are all blank and there is an entry on Schedule 2 line 8 of:

    If on Schedule 2 line 8, the taxpayer has indicated Then
    Tax on Excess Contributions to Traditional IRAs, Edit the Schedule 2 line 8 amount to line 17 of Form 5329.
    Tax on Excess Contributions to ROTH IRAs, Edit the Schedule 2 line 8 amount to line 25 of Form 5329.
    Tax on Excess Contributions to Education (Ed) IRAs (Coverdell ESA's), Edit the Schedule 2 line 8 amount to line 33 of Form 5329.
    Tax on Excess Contributions to Medical Savings Accounts (Archer MSA), Edit the Schedule 2 line 8 amount to line 41 of Form 5329.
    Tax on Excess Contributions to Health Savings Accounts (HSA), Edit the Schedule 2 line 8 amount to line 49 of Form 5329.
    Tax on Excess Contributions to an ABLE Account, Edit the Schedule 2 line 8 amount to line 51 of Form 5329.
    Tax on Excess Accumulation in Individual Retirement Plans, Edit the Schedule 2 line 8 amount to line 55 of Form 5329.

Loose Form 5329

  1. Route loose Form 5329 to Receipt & Control.

Prior Year Form 5329

  1. For TY1974 and prior, "X" Form 5329.

Form 6198 - At-Risk Limitations

  1. The instructions provided in this subsection of the manual are for editing Form 6198.

  2. The following lines on the Form 6198 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Line
    • Line 5

    • Lines 20 and 21

    • Line 5

Form 6198 - General Editing Procedures

  1. Edit Sequence Code "31" in the upper-right margin of Form 6198 if not preprinted.

  2. "X" Form 6198 when the entry on line 5 is positive or zero.

  3. Only one Form 6198 can be processed. When more than one Form 6198 is present:

    1. Combine all related T-Lines from forms that result in a loss on line 5.

    2. Delete those forms not used.

    Exception:

    Do not combine Forms 6198 identified as "AMT," "ALT MIN TAX" , or "AMT CR" .

  4. Edit on line 20 the larger of line 10b or 19b when line 20 is blank. Do not edit a negative amount.

  5. Edit the negative amount from line 5 to line 21 when line 21 is blank

Prior Year Form 6198

  1. For TY1985 and prior, "X" Form 6198 when it is filed.

Form 6251 - Alternative Minimum Tax

  1. The instructions provided in this subsection of the manual are for editing Form 6251.

Form 6251- General Editing Procedures

  1. The following lines on the Form 6251 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Lines 2c through 3

    • Line 8

    • There are no T-Compute lines for this form.

  2. Edit Sequence Code "32" in the upper-right margin of Form 6251 if not preprinted.

  3. Edit FPC "5" when Form 6251 is attached.

  4. Do not"X" Form 6251 when there are no significant entries on T-Lines.

  5. Only one Form 6251 can be processed. When multiple forms are present take the following actions:

    1. Combine all related T-Line amounts.

    2. "X" those forms not being used.

  6. Process Form 6251 using normal procedures when "For Information Only" or "does not apply" , etc. is written on the form.

Prior Year Form 6251

  1. For TY17 and prior, when an amount is present on original line 16 (or equivalent), add the amount to line 3 and delete line 16.

  2. For TY92 and prior, "X" the Form 6251 when it is filed.

Form 8615 - Tax for Certain Children Who Have Unearned Income

  1. The instructions provided in this subsection of the manual are for editing Form 8615. These instructions include:

    • General editing and perfecting procedures

    • Perfecting the parent's name line and TIN

  2. Edit Sequence Code "33" in the upper-right margin of Form 8615 if not preprinted.

  3. Only one Form 8615 can be processed. When multiple Forms 8615 are present:

    1. Process Form 8615 for the taxpayer identified on Form 1040.

    2. Delete those forms not used.

Form 8615

  1. The following lines on the Form 8615 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Lines A and B

    • Lines 1 and 2

    • Line 18

    • There are no T-Compute lines for this form.

  2. Form 8615 can only be processed with a dependent child's return. "X" Form 8615 when attached to a parent's return. Also "X" line 24 Form 1040.

  3. "X" Form 8615 when the amount on line 1 is $2,500 or less.

  4. "X" Form 8615 when line 3 is computed to be negative or zero.

Parent's Name Line and TIN
  1. Edit the parent's Name Control to line A, if not already present.

  2. Edit the parent's name control from the signature line when both of the following are present:

    • The parent's name line is blank on Form 8615, and

    • The parent's name is present and legible on Form 1040.

  3. Correspond when both of the following conditions are present:

    1. The parent's name control cannot be determined, and

    2. The parent's TIN is other than nine numbers, illegible, or missing.

    When corresponding with Form 6001 use box P, with Form 3531 use box 18.

  4. Perfect the parent's TIN as follows when the parent's name control is present:

    1. Circle the parent's TIN when it is illegible or other than nine digits.

    2. Circle all but the first TIN when multiple TINs are present.

    3. Take no action when the TIN is missing.

Line 1 - Unearned Income
  1. Do not perfect line 1 if it is blank.

  2. "X" Form 8615 when the amount on line 1 is $2,500 or less.

Prior Year Form 8615

  1. For TY22, "X" Form 8615 when the amount on line 1 is $2,300 or less.

  2. For TY21 - 19, "X" Form 8615 when the amount on line 1 is $2,200 or less.

  3. For TY18 - 15, "X" Form 8615 when the amount on line 1 is $2,100 or less.

  4. For TY14 - 13, "X" Form 8615 when the amount on line 1 is $2,000 or less.

  5. For TY12 - 09, "X" Form 8615 when the amount on line 1 is $1,900 or less.

  6. For TY08, "X" Form 8615 when the amount on line 1 is $1,800 or less.

  7. For TY07 - 06, "X" Form 8615 when the amount on line 1 is $1,700 or less.

  8. For TY05 - 04, "X" Form 8615 when the amount on line 1 is $1,600 or less.

  9. For TY03 - 01, "X" Form 8615 when the amount on line 1 is $1,500 or less.

  10. For TY00 - 98, "X" Form 8615 when the amount on line 1 is $1,400 or less.

  11. For TY97 - 95, "X" Form 8615 when the amount on line 1 is $1,300 or less.

  12. For TY94 - 92, "X" Form 8615 when the amount on line 1 is $1,200 or less.

  13. For TY91, "X" Form 8615 when the amount on line 1 is $1,100 or less.

  14. "X" the form when it is for tax year 1986 and prior.

Form 4835 - Farm Rental Income and Expenses

  1. The instructions provided in this subsection of the manual are for editing Form 4835.

  2. Edit Sequence Code "37" in the upper-right margin of Form 4835 if not preprinted.

  3. The following lines on the Form 4835 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Line 1

    • Line 2a

    • Line 3a

    • Lines 4a and 4b

    • Line 5a

    • Line 6

    • There are no T-Compute lines for this form.

Form 4835 - General Editing Procedures

  1. Only one Form 4835 can be processed. When multiple Forms 4835 are present:

    1. Combine all related T-Line amounts.

    2. "X" those forms not being transcribed.

  2. Take one of the following actions when line 40 of Schedule E is blank:

    1. Edit the amount from Form 4835, line 32 (if a gain), to line 40, Schedule E.

    2. Edit the amount from Form 4835, line 34c (if a loss), to line 40, Schedule E unless the taxpayer notates "PAL" . (See Figure 3.11.3-107.)

    3. If line 34c on Form 4835 is blank, edit the loss from line 32, Form 4835, to line 40, Schedule E, unless the taxpayer notates "PAL."

      Note:

      Combine Form 4835 totals when perfecting Schedule E.

  3. Edit a positive amount from line 7 of Form 4835 to line 42 of Schedule E when line 42 of Schedule E is blank. (See Figure 3.11.3-107.)

    Note:

    Combine Form 4835 totals when perfecting Schedule E.

    Figure 3.11.3-107

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    Please click here for the text description of the image.

Prior Year Form 4835

  1. "X" Form 4835 when it is attached.

    Reminder:

    Edit amounts from Form 4835 to Schedule E, as required.

Form 8839 - Qualified Adoption Expenses

  1. The instructions provided in this subsection of the manual are for editing Form 8839.

  2. Edit Sequence Code "38" in the upper-right margin of Form 8839 if not preprinted.

  3. The following lines on the Form 8839 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Line 1, columns (a) through (g)

    • Line 3 - edited for Child 1, Child 2 and Child 3

    • Line 5 – edited for Child 1, Child 2, and Child 3

    • Line 11 - edited for Child 1, Child 2, and Child 3

    • Line 13

    • Line 21

    • Line 27 - edited for Child 1, Child 2, and Child 3

    • Line 28

    • Line 29

    • Documentation Indicator edited below line 1, column g

    • Line 21

    • Line 29

Form 8839 - General Editing Procedures

  1. The taxpayer is instructed to file as many Forms 8839 as needed to report the number of children that they adopted or unsuccessfully tried to adopt. However, only one Form 8839 can be processed. Select the Form 8839 for processing in the following priority:

    1. Process the first Form 8839 with an entry on line 16, or

    2. Process the first Form 8839 when there are no Forms 8839 with an entry on line 16.

    Note:

    "X" those forms not to be transcribed.

  2. Perfect the child's name control if the last name is not present on Form 8839. Take no action if unable to perfect from Form 1040 or attachments. (See Figure 3.11.3-108.)

  3. Edit the child's TIN from the return or attachments when missing, incomplete or illegible. Circle the child's TIN when it cannot be perfected. Circle all but the first TIN when more than one is present for any one child. (See Figure 3.11.3-108.)

    Figure 3.11.3-108

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    Please click here for the text description of the image.

Line 21 – Total of Employer Provided Adoption Benefits
  1. Search Form W-2 for employer-provided adoption benefits when line 21 is blank. Perfect line 21 in the following priority:

    1. Compute and edit line 21 from line 20 when line 20 has entries. (See Figure 3.11.3-109.)

    2. Edit to line 21 the combined total of adoption benefits from Form(s) W-2.

      Note:

      Adoption benefits should be shown on Form W-2 in box 12 with an income indicator of "T" .

Line 29 – Taxable Benefits
  1. Compute and edit the line 29 amount when both of the following conditions are present. (See Figure 3.11.3-109.)

    1. Line 29 is blank, and

    2. There are significant entries present on or edited to either or both lines 21 and 28.

    Figure 3.11.3-109

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    Please click here for the text description of the image.

Prior Year Form 8839

  1. For TY11 and TY10, Form 8839 was a refundable credit. Follow the instructions in (2) and (3) below.

  2. Taxpayers must provide supporting documentation to claim the Qualified Adoption Expenses Credit. Several types of documentation can be submitted to support a claim for this credit, for Code and Edit purposes, tax examiners will only compare the names of the taxpayer(s) and the adopted child(ren) on the Form 8839 against the names of the adoptive parent(s) and the adoptive child(ren) on the documentation provided by the taxpayer when the adoption is in-process. Handwritten statements are not acceptable documentation.

    1. For domestic or foreign final adoptions -- including special needs adoptions -- tax examiners will see the following types of documentation:
      • Adoption Order or Decree
      • Hague Adoption Certificate or a IH 3 Visa (immigrating child) (for an adoption governed by the Hague Convention and another country)
      • IR 2 or IR 3 Visa
      • State determination of special needs child

    2. For in-process adoptions, tax examiners will see the following types of documentation:
      • Home study completed by an authorized placement agency
      • Placement agreement with an authorized placement agency.
      • Document signed by a hospital official authorizing the release of a newborn child from the hospital to the taxpayer for legal adoption.
      • Court documents ordering or approving the placement of a child with the taxpayer for legal adoption.
      • Original affidavit or notarized statement signed under penalties of perjury from an adoption attorney, government official, or other authorized person, stating the signor placed or is placing a child with the taxpayer for legal adoption or is facilitating the adoption process for the taxpayer in an official capacity, with a description of the actions taken to facilitate the process.

  3. Follow the instructions below when editing line 1, columns (a) through (g).

    Note:

    Attached documentation must have the word "adoption" .

    If And Then
    There is one or more child(ren) listed in column (a) and any box in Part I of the form is checked, No adoption documentation is present, Edit Documentation Indicator "0" (zero).
    There is one or more child(ren) listed in column (a) and the adoption is in-process (checkbox under column (g) is not marked), Adoption documentation is present that includes the name of each child listed in column (a) AND the documentation also includes the name of at least one of the taxpayers as the adoptive parent, Edit Documentation Indicator "1" .

    Exception:

    If any documentation is missing for any child, edit Adoption Indicator Code "0" (zero).

    There is one or more child(ren) listed in column (a) and the adoption is in-process (checkbox under column (g) is not marked), Adoption documentation for any child is missing, Edit Documentation Indicator "0" (zero).
    There is one or more child(ren) listed in column (a) and the adoption is in-process (checkbox under column (g) is not marked), The name(s) of any adopted child(ren) or of the taxpayers does not match the name on the adoption documentation, Edit Documentation Indicator "0" (zero).

    Note:

    For FS 2 returns, it is not required that both taxpayers' names appear on the Form 8839 and the associated documentation.

  4. For TY96 and prior, "X" Form 8839.

Form 8853 - Archer MSAs and Long Term Care (LTC) Insurance Companies

  1. Use the instructions provided in this subsection of the manual for editing Form 8853.

  2. The following lines in Section A of the Form 8853 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • TIN

    • Lines 1 - 4

    • There are no T-Compute lines for this form

Form 8853 - General Editing Procedures

  1. Edit Sequence Code "39" in the upper-right margin of Form 8853, page 1, if not preprinted.

  2. Only one Form 8853 can be processed. Refer to the instructions in IRM 3.11.3.41.1.2 for directions on combining multiple Sections A.

  3. When only the TIN and the name, or if only page 2 is attached, delete the form.

Archer MSA Instructions (Section A)
  1. Edit the TIN from the caption of Form 1040 when the SSN is missing, illegible, or other than nine digits.

  2. Perfect the TIN on a joint return as follows:

    1. Edit the TIN of the MSA account holder.

    2. Edit the primary taxpayer's TIN when the MSA account holder cannot be determined, when both the primary and secondary taxpayer are MSA account holders, or when the secondary taxpayer's TIN is not available.

    3. Circle the TIN which does not match the taxpayer name in the caption of Section A when there are two TINs but only one name.

  3. "X" all negative T-Line amounts.

Combining Multiple Sections A
  1. Only one Section A of Form 8853 can be processed.

  2. Follow the instructions below for combining multiple Forms 8853 when more than one is present (see Figure 3.11.3-110).

    If more than one Form 8853 is attached and Then
    The taxpayer has followed instructions to provide one summary Form 8853 with combined totals,
    • Process the Form 8853 with the combined totals.

    • Delete those forms not used.

    The taxpayer has not followed instructions to provide a summary Form 8853 with combined totals,
    • Combine related T-Line amounts onto one Form 8853.

    • Delete those forms not used.

    Figure 3.11.3-110

    This is an Image: 33440110.gif

    Please click here for the text description of the image.

Prior Year Form 8853

  1. For TY96 and prior, "X" Form 8853.

Form 8814 - Parent's Election to Report Child's Interest and Dividends

  1. The instructions provided in this subsection of the manual are for editing Form 8814. These instructions include:

    • General editing and perfecting procedures

    • Perfecting the child's name control and TIN

  2. Up to three Forms 8814 can be processed.

    1. Edit Sequence Code "40" in the upper-right margin of the first Form 8814 if not preprinted.

    2. Edit Sequence Code "41" on the second Form 8814.

    3. Edit Sequence Code "42" on the third Form 8814.

  3. The following lines on Form 8814 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Child's Name Control

    • Child's TIN

    • Lines 1a and 1b

    • Line 2a

    • Line 3

    • Line 15

    • Line 15

Form 8814 - General Editing Procedures

  1. Process the first three processable Form 8814 and "X" the remaining forms when the taxpayer submits more than three.

  2. "X" Form 8814 when the amount on line 4 is $1,250 or less.

  3. When the amount on line 4 is $12,500 or more take the following actions:

    1. "X" Form 8814.

    2. "X" or adjust Schedule 1, line 9 to exclude the amount from Form 8814.

    3. Continue processing the return.

Line A - Child's Name Control
  1. Edit the name control when the child's last name is not present.

  2. Edit the name control of the parent when the child's last name cannot be determined.

Line B - Child's Taxpayer Identification Number
  1. Perfect the child's TIN when it is missing, illegible, or other than nine digits.

  2. Use the return and attachments to perfect the TIN. Edit the TIN when a child's name is present on Form 8814 and the same child has a TIN listed on any of the following:

    • Dependent section of Form 1040

    • Line 2 of Schedule EIC

    • Line 2 of Form 2441

  3. Correspond for the missing TIN only when corresponding for other missing information. When corresponding with Form 6001 use box P, with Form 3531 use box 18.

    Exception:

    Do not correspond when the taxpayer indicates the child's TIN is "Applied for" , "Unknown" , etc.

  4. Circle all but the first TIN when more than one TIN is present.

Line 15 - Tax
  1. Compute and edit line 15 when it is blank and there are entries leading to an amount. Use the following chart to compute line 15:

    If the line 14 entry is Then
    $1,250 or more, Edit "125" on line 15.
    Less than $1,250, Multiply the amount on line 14 by 10% (.10) and edit the result on line 15.
    Blank, dash or zero, Do not edit an amount on line 15.

Prior Year Form 8814

  1. For TY22, use the chart below to determine the correct editing of Form 8814:

    If the amount on Then
    Line 4 is $1,150 or less "X" Form 8814
    Line 4 is $11,500 or more,
    1. "X" Form 8814.

    2. "X" or adjust Schedule 1, line 9, to exclude the amount from Form 8814.

    3. Continue processing the return.

    Line 14 is $1,150 or more and line 15 is blank, Edit "115" on line 15.
    Line 14 is less than $1,150 and line 15 is blank, Multiply the amount on line 14 by 10% (.10) and edit the result on line 15.
    Line 14 is blank, dash, or zero, Do not edit an amount on line 15.

  2. For TY21-19, use the chart below to determine the correct editing of Form 8814:

    If the amount on Then
    Line 4 is $1,100 or less "X" Form 8814
    Line 4 is $11,000 or more,
    1. "X" Form 8814.

    2. "X" or adjust Schedule 1, line 9, to exclude the amount from Form 8814.

    3. Continue processing the return.

    Line 14 is $1,100 or more and line 15 is blank, Edit "110" on line 15.
    Line 14 is less than $1,100 and line 15 is blank, Multiply the amount on line 14 by 10% (.10) and edit the result on line 15.
    Line 14 is blank, dash, or zero, Do not edit an amount on line 15.

  3. For TY18 - 15, use the chart below to determine the correct editing of Form 8814:

    If the amount on Then
    Line 4 is $1,050 or less, "X" Form 8814
    Line 4 is $10,500 or more,
    1. "X" Form 8814.

    2. "X" or adjust Schedule 1, line 9, to exclude the amount from Form 8814.

    3. Continue processing the return.

    Line 14 is $1,050 or more and line 15 is blank, Edit "105" on line 15.
    Line 14 is less than $1,050 and line 15 is blank, Multiply the amount on line 14 by 10% (.10) and edit the result on line 15.
    Line 14 is blank, dash, or zero, Do not edit an amount on line 15.

  4. For TY14 or TY13, use the chart below to determine the correct editing of Form 8814:

    If the amount on Then
    Line 4 is $1,000 or less "X" Form 8814
    Line 4 is $10,000 or more,
    1. "X" Form 8814.

    2. "X" or adjust Schedule 1, line 9, to exclude the amount from Form 8814.

    3. Continue processing the return.

    Line 14 is $1,000 or more and line 15 is blank, Edit "100" on line 15.
    Line 14 is less than $1,000 and line 15 is blank, Multiply the amount on line 14 by 10% (.10) and edit the result on line 15.
    Line 14 is blank, dash, or zero Do not edit an amount on line 15.

  5. For TY12 - TY09, use the chart below to determine the correct editing of Form 8814:

    If the amount on Then
    Line 4 is $950 or less "X" Form 8814
    Line 4 is $9,500 or more,
    1. "X" Form 8814.

    2. "X" or adjust Schedule 1, line 9, to exclude the amount from Form 8814.

    3. Continue processing the return.

    Line 14 is $950 or more and line 15 is blank, Edit "95" on line 15.
    Line 14 is less than $950 and line 15 is blank, Multiply the amount on line 14 by 10% (.10) and edit the result on line 15.
    Line 14 is blank, dash, or zero Do not edit an amount on line 15.

  6. For TY08, use the chart below to determine the correct editing of Form 8814:

    If the amount on Then
    Line 4 is $900 or less "X" Form 8814
    Line 4 is $9,000 or more,
    1. "X" Form 8814.

    2. Continue processing the return.

    Line 14 is $900 or more and line 15 is blank, Edit "90" on line 15.
    Line 14 is less than $900 and line 15 is blank, Multiply the amount on line 14 by 10% (.10) and edit the result on line 15.
    Line 14 is blank, dash, or zero Do not edit an amount on line 15.

  7. For TY07 - TY06, use the chart below to determine the correct editing of Form 8814:

    If the amount on Then
    Line 4 is $850 or less, "X" Form 8814.
    Line 4 is $8,500 or more,
    1. "X" Form 8814.

    2. Continue processing the return.

    Line 14 is $850 or more and line 15 is blank, Edit "85" on line 15.
    Line 14 is less than $850 and line 15 is blank, Multiply the amount on line 14 by 10% (.10) and edit the result on line 15.
    Line 14 is blank, dash, or zero, Do not edit an amount on line 15.

  8. For TY05, use the chart below to determine the correct editing of Form 8814:

    If the amount on Then
    Line 4 is $800 or less, "X" Form 8814.
    Line 4 is $8,000 or more,
    1. "X" Form 8814.

    2. Continue processing the return.

    Line 14 is $800 or more and line 15 is blank, Edit "80" on line 15.
    Line 14 is less than $800 and line 15 is blank, Multiply the amount on line 14 by 10% (.10) and edit the result on line 15.
    Line 14 is blank, dash, or zero, Do not edit an amount on line 15.

  9. For TY04 - ABP Adjustment, "X" Form 8814 based on the tax year and dollar amount in the chart below:

    Tax Year Line 4 is
    TY04 $800 or less
    TY03 - TY01, $750 or less
    TY00 - TY98 $700 or less
    TY97 - TY96 $650 or less
    TY95 - TY89 $500 or less

  10. For TY88 and prior, "X" Form 8814.

Schedule EIC - Earned Income Credit

  1. The instructions provided in this subsection of the manual are for editing Schedule EIC. These instructions include:

    • General editing and perfecting procedures

    • Perfecting the qualifying child's name control, year of birth, and TIN

    • Editing the student under age 24 and disabled indicators

  2. Edit Sequence Code "43" in the upper-right margin of Schedule EIC if not preprinted.

  3. Edit Audit Code "U" for returns with Form 8862 attached with Part II, Earned Income Credit portion of the form completed. For TY16 and prior, edit Audit Code "U" with Form 8862 attached.

  4. The following lines on the Schedule EIC are T-Lines and T-Compute Lines:

    Note:

    Do not "X" Schedule EIC when T-line entries are present except as noted in IRM 3.11.3.43.1(2) and IRM 3.11.3.43.10.

    T-Lines T-Compute Lines
    • Checkbox - Qualifying Filing Separate Indicator

    • Line 1 - Child's name control

    • Line 2 - Child's TIN

    • Line 3 - Year of Birth

    • Line 4a - Under age 24 check box

    • Line 4b - Disabled check box

    • Relationship Code

    • Line 6

    • There are no T-Compute lines for this schedule.

Schedule EIC - General Editing Procedures

  1. Only one Schedule EIC can be processed. Combine multiple Schedules EIC when more than 1 is present. Edit the first three qualifying children to one Schedule EIC. "X" those Schedules not used.

  2. Do not "X" Schedule EIC if FS 3/6 or no qualifying children are present unless line 11 of Form 1040 is $56,838 ($63,398 for FS 2) or more.

  3. Correspond for required missing Schedule EIC information when either of the following conditions are present:

    • The number of months the child lived in the home is missing and cannot be determined. (See Figure 3.11.3-111.)

      Exception:

      Do not correspond when the child was born during the tax period and died during the same or next consecutive tax period.

    • Correspondence is required for other missing return items.

    Figure 3.11.3-111

    This is an Image: 33440111.gif

    Please click here for the text description of the image.

Line 1 - Qualifying Child

  1. A qualifying child is any one of the following:

    1. A child of the taxpayer - including a son, daughter, adopted child, stepchild, or grandchild - who lived in the home for more than 6 months. See IRM 3.11.3.13.1.1(1).

    2. A foster child, foster son, or foster daughter who lived in the home for more than 6 months.

    3. Any brother, sister, stepbrother, stepsister, niece or nephew whom the taxpayer cared for as their own and lived in the home for more than 6 months.

    4. A child that was born or died during the tax year.

    5. Taxpayer indicated "KC" (Kidnapped Child) in line 6 area.

    Exception:

    When the relationship is missing or shown as "child" and the number of months is more than 6, assume the child qualifies.

  2. Do not consider a child to be an EIC qualifying child when there is an indication the child did not live in the U.S. for more than half of the year, unless the child lived on a U.S. military base.

  3. Edit an "X" to the left of each non-qualifying child's name. (See Figure 3.11.3-112.)

Child's Name Control

  1. If the name control is not present for a qualifying child, edit it in the following priority:

    1. From the Dependents area on Form 1040 or attachments. (See Figure 3.11.3-112.)

    2. From the primary taxpayer's name control.

    Figure 3.11.3-112

    This is an Image: 33440112.gif

    Please click here for the text description of the image.

Line 2 - Child's SSN

  1. Perfect the child's TIN when both of the following conditions are present:

    • The child is a "qualifying child,"

    • The TIN is missing or incomplete.

  2. Edit the child's missing TIN from attachments in the following priority:

    1. Dependents area of Form 1040. (See Figure 3.11.3-113.)

    2. Line 2 of Form 2441.

    3. Other attachments.

  3. Correspond when the child's TIN is missing and the child was born and died during the same or consecutive tax period if none of the following documents are present:

    • Birth Certificate

    • Death Certificate

    • Hospital medical records

      Note:

      The document must clearly establish the child was born alive during the tax year.

    When corresponding with Form 6001 use box E, with Form 3531 use box 5.

  4. "X" the child's name when the TIN cannot be perfected. (See Figure 3.11.3-113.)

    Figure 3.11.3-113

    This is an Image: 33440113.gif

    Please click here for the text description of the image.

Line 3 - Year of Birth

  1. If the taxpayer has provided only two digits to indicate a year-of-birth, take the following actions:

    1. Edit "20" to the left of the two digits provided by the taxpayer if the year of birth is shown to be 00-23.

    2. Edit "19" to the left of the two digits provided by the taxpayer if the year of birth is shown to be 24-99.

      Note:

      If unable to perfect the year of birth, or if the year of birth is not present, edit "1970" as the year of birth.

  2. If the taxpayer has provided a year of birth in MMDDYY format, perfect to YYYY format.

Line 4a - Student Under Age 24 Indicator

  1. Edit an "X" in the line 4a "Yes" box for each qualifying child when both of the following conditions are present:

    • The taxpayer has not marked the box

    • The taxpayer has indicated the child is a student

    Note:

    The taxpayer may indicate the child is a student by entering "yes" , "ok" , or the child's name in the line 4a area.

Line 4b - Disabled Indicator

  1. Edit an "X" in the line 4b "Yes" box for each qualifying child when both of the following conditions are present:

    • The taxpayer has not marked the box

    • The taxpayer has indicated the child is disabled

    Note:

    The taxpayer may indicate the child is disabled by entering "yes" , "ok" , or the child's name in the line 4b area.

Line 5 - Child's Relationship to You

  1. Edit the Relationship Code for each qualifying child in the area immediately to the right of the taxpayer's designation in the box(es) on line 5.

    Relationship Code
    Son or Daughter 1
    Step-Child (son or daughter) 2
    Foster Child (son or daughter) 3
    Grandchild (son or daughter) 4
    Niece or Nephew 5
    Brother or Sister 6
    Half-Brother or Half-Sister 7
    Step-Brother or Step-Sister 8
    No relationship indicated to include notations of "Child" Take no action

Line 6 - Number of Months Child Lived with You

  1. Correspond if the number of months is missing and there is no indication of "Kidnapped Child" . When corresponding with Form 6001 use box P, with Form 3531 use box 21.

  2. If there is an indication the child has been kidnapped, edit "KC" on the months line on line 6.

    Note:

    If number of months and an indication of kidnapped child is present, delete the number of months and edit "KC" .

  3. If the number of months for a qualifying child is a single-digit entry, edit a zero first to make a two-digit entry. For example, the taxpayer shows an entry of "9" months; edit "09" .

    Note:

    If the number of months is over 6 but less than 7, edit "07" .

Prior Year Schedule EIC

  1. For TY2022, do not "X" Schedule EIC if FS 3/6 or no qualifying children are present unless line 11 of Form 1040 is $53,057 ($59,187 for FS 2) or more.

  2. For TY2021, do not "X" Schedule EIC if FS 3/6 or no qualifying children are present unless line 11 of Form 1040 is $51,464 ($57,414 for FS 2) or more.

  3. For TY2020 and prior, "X" Schedule EIC when:

    • it shows no qualifying children present, or

    • the filing status is 3 or 6, or

  4. "X" Schedule EIC when the adjusted gross income is equal to or greater than the dollar amounts as shown in the table below:

    The Tax Year is And the Adjusted Gross Income is equal to or greater than:
    2020 $50,954 ($56,844 for FS 2)
    2019 $50,162 ($55,952 for FS 2)
    2018 $49,194 ($54,884 for FS 2)
    2017 $48,340 ($53,930 for FS 2)
    2016 $47,955 ($53,505 for FS 2)
    2015 $47,747 ($53,267 for FS 2)
    2014 $46,997 ($52,427 for FS 2)

  5. For TY2000 and later, cousin, godchild, or boy/girlfriend’s child no longer falls under the category of foster child.

  6. For TY1995 and prior, do not delete the name of a qualifying child when there is no TIN present, and you are unable to obtain the TIN through research or attachments.

  7. For TY1990 or prior, "X" the Schedule EIC.

Schedule H - Household Employment Taxes

  1. The instructions provided in this subsection of the manual are for editing Schedule H. These instructions include:

    • General editing and perfecting procedures

    • Processing "loose" Schedules H

    • Editing the employers name control and Employer Identification Number (EIN) and TIN

    • Editing the FUTA Indicator Code and State Code

    • Editing the Additional States Indicator

  2. The following lines on the Schedule H are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Employer's name control

    • Employer's TIN

    • Employer's EIN

    • Lines 1a

    • Line 1b (TY20 and later)

    • Line 3

    • Lines 5 through 7

    • Line 8b

    • Line 8c (TY21 and later)

    • Line 8d

    • Line 8e (TY 20 and later)

    • Line 8f (TY21 and later)

    • FUTA Indicator Code edited under the "Yes/No" boxes, page 2, Part II

    • Lines 13 through 16

    • Line 17, column(a)

    • Line 18, column(h)

    • Lines 19 and 20

    • Line 23

    • Line 24

    • Additional States Indicator - edited in bottom left margin

    • Line 8d

    • Line 18

    • Line 19

    • Line 24

Schedule H - General Editing Procedures

  1. Only two Schedules H can be processed. One Schedule H for each of:

    • The primary taxpayer

    • The secondary taxpayer

  2. Edit Sequence Code "44" when only one processable Schedule H is present and the Sequence Code is not preprinted. The Sequence Code is edited in the upper-right corner of page 1.

  3. When two processable Schedules H are present-one for the primary taxpayer and one for the secondary taxpayer, edit the Sequence Code as follows:

    1. Edit Sequence Code "44" when it is not preprinted, for the primary taxpayer.

    2. Edit Sequence Code "45" for the secondary taxpayer.

  4. Combine multiple Schedules H when there is more than one Schedule H for any one taxpayer. When the taxpayer has entries in Part II on page 2 of more than one Schedule H:

    1. Combine all data and edit it to Section B.

    2. "X" those schedules not to be transcribed.

  5. When one Schedule H is submitted for two taxpayers take one of the following actions:

    1. Allocate each taxpayer's amounts to separate dummy Schedules H. "X" the Schedule H with the combined taxpayer liability.

    2. Correspond for the correct allocation when it cannot be determined. When corresponding with Form 6001 use box U, with Form 3531 use box 17.

  6. Correspond for Schedule H when the taxpayer submits only page 2.

  7. No page 2 editing is required when lines 25 and 26 are the only entries on page 2.

  8. "X" Section A, page 2 if both Section A and Section B, page 2, have entries. (See Figure 3.11.3-114.)

    Figure 3.11.3-114

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    Please click here for the text description of the image.

Schedule H - Employer Name Control

  1. Edit the name control of the employer if it is not present. (See Figure 3.11.3-115.)

  2. Edit the primary taxpayer's name control from the front of the return when the name control is missing or illegible.

  3. Use the caption to determine the Name Control when there are two names but only one TIN is present.

    Figure 3.11.3-115

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    Please click here for the text description of the image.

Schedule H - Social Security Number Box

  1. Perfect the TIN when it is missing, illegible, or other than nine digits. Perfect the TIN in the following priority:

    1. From the caption area on page 1 of Form 1040.

    2. From Form(s) W-2, schedules, or attachments.

  2. Correspond with the taxpayer for the missing TIN only when corresponding for other missing information. When corresponding with Form 6001 use box U, with Form 3531 use box 17.

  3. Use the caption to determine the correct TIN when there are two TINs but only one name on the Schedule H. Circle the TIN which does not match the taxpayer's name.

Schedule H - Employer Identification Number (EIN) Box

  1. Search the return for the Employer Identification Number (EIN) when it is missing, illegible, or other than nine digits. Research for a missing EIN if possible. If still unable to find an EIN, take the following actions when the EIN cannot be found on an unnumbered return:

    1. Finish editing the return.

    2. Route the return to Entity.

    Exception:

    Do not search the return for the missing EIN or route the return to Entity when the taxpayer has written "Applied for" in the EIN box.

    Note:

    Do not route a numbered return to Entity when the EIN cannot be perfected.

  2. Delete the EIN when it matches the taxpayer's TIN in the Schedule H Social Security Number box. Also, follow the instructions in (1) above.

Line 1a - Total Social Security Wages

  1. "X" line 1a when it is less than $2,600.

Line 3 - Total Medicare Wages

  1. "X" line 3 when it is less than $2,600.

Line 8d - Total Social Security, Medicare, and Income Taxes

  1. Compute and edit line 8d when it is blank by adding lines 8b and 8c then subtract total from line 8a.

Schedule H - FUTA Indicator (FIN Code)

  1. Edit the FUTA Indicator (FIN) Code under the "Yes/No" boxes in Part II on page 2 of Schedule H.

  2. Do not edit a FIN Code when Part II has no significant money entries.

  3. Edit the FIN Code based on the taxpayer's answers to questions 10, 11, and 12 in Part II of Schedule H.

  4. Take no action when all the questions are answered "Yes" . (See Figure 3.11.3-116.)

  5. Code the FIN as "1" when any of the questions are answered "No" . (See Figure 3.11.3-116.)

  6. Refer to Sections A and B in Part II of the Schedule H when the conditions in (4) or (5) are not met (i.e., all blank or a combination of "yes" entries and blank entries by the taxpayer).

    1. Take no action when only Section A has entries.

    2. Code the FIN as "1" when only Section B has entries or when both sections have entries. (See Figure 3.11.3-116.)

    Reminder:

    Delete Section A when both Sections A and B have entries.

    Figure 3.11.3-116

    This is an Image: 33440116.gif

    Please click here for the text description of the image.

Line 13 - FUTA State Code

  1. Circle all states when more than one State Code or state name is present on line 13. (See Figure 3.11.3-117.)

  2. Edit the State Code from the taxpayer's address listed in the caption area of the return when there are no State Codes or State Names present and entries are present in Section A. (See Figure 3.11.3-117.)

    Figure 3.11.3-117

    This is an Image: 33440117.gif

    Please click here for the text description of the image.

Line 14 - FUTA Contributions Paid

  1. "X" line 14 when the taxpayer has written "0% rate" or "zero percent rate" as the only entry.

Line 17 - Column (a), FUTA State Code

  1. A valid State Code must be present or edited when there are significant money amounts entered on lines 20 or 24. (See Exhibit 3.11.3-10 for a list of all State Codes.)

  2. Edit the State Codes to line 17, column (a) when the taxpayer writes "see attached" and there are one or two State Codes present on the attachment.

  3. Circle the State Code(s) or state name(s) on line 17, column (a) when more than two are present on the return or attachments.

  4. Edit the State Code for the taxpayer's address listed in the caption portion of the return when there are no State Codes or state names present.

Line 18 - Column (h), FUTA Contributions Paid

  1. "X" line 18 when the taxpayer has written "0% rate" or "zero percent rate" as the only entry.

Line 19 - FUTA Total Tentative Credit

  1. Compute and edit line 19 when it is blank by adding lines 18(g) and 18(h).

    1. If line 18(g) and 18(h) are also blank, compute line 19 by adding lines 17(g) and 17(h).

    2. If line 17(g) and 17(h) are blank, take no action.

Additional States Indicator

  1. When more than five state codes are present, edit the Additional States Indicator of "1" in the lower left margin of page 2.

Loose Schedule H

  1. Taxpayers who are not required to file Form 1040, may still be required to file Schedule H. These taxpayers will file Schedule H alone.

    If a "loose" Schedule H is received Then
    With a payment, The Deposit function will indicate "Loose Schedule H" on the form and forward it to Code and Edit.
    Without a payment, Receipt and Control will route the Schedule H directly to Code and Edit.

  2. Route loose Schedules H to Receipt and Control, Media Transport Unit when:

    • "TRUST" or "ESTATE" is noted in the caption, or

    • If an EIN and a BMF name line are present.

    Note:

    Work leaders will review all forms to ensure transshipment is required before forwarding to the Media Transport Unit.

  3. If a current year loose Schedule H has no money amount entries, refer it to your work leader. The work leader will dispose of the loose Schedule H per classified waste procedures.

  4. For a current year loose Schedule H, follow the instructions below:

    1. Research the tax period for a TC150. If TC150 has posted, edit "TC150" in the upper-left corner and route to Accounts Management.

    2. If research determines no TC150 has posted, continue processing.

  5. Some processing procedures for loose Schedules H depend on whether the Schedule H is received before or after April 15, 2024.

  6. When a "loose" Schedule H is received on or before April 15, Work Leader will use the following criteria to determine whether to correspond or process the schedule:

    If Line 27 is And Then
    Answered "Yes" ,   Correspond.
    Answered "No" , Part IV is missing the signature or signature is other than the taxpayer's and no documentary evidence is attached, Correspond.
    Answered "No" , Part IV has the taxpayer's signature present or the signature is other than the taxpayer’s and documentary evidence is attached, Dummy a Form 1040, following the procedures in (9) below.
    Blank, Part II contains entries, Correspond.
    Blank, Part I contains entries, Part II is blank, and Part IV has the taxpayer's signature present or the signature is other than the taxpayer’s and documentary evidence is attached, Dummy a Form 1040, following the procedures in (9) below.
    Blank, Part II is blank and the signature is missing in Part IV or signature is other than the taxpayer's and no documentary evidence is attached Correspond.

    Note:

    Documentary evidence is always required when Loose Schedule H is signed by a non-fiduciary representative, such as a POA. Correspond using Notice 1207.

  7. When correspondence is required in (6) above, use the following procedures for corresponding with the taxpayer using Notice 1207.

    1. Edit the taxpayer's complete mailing address in the caption of Schedule H from the part IV address area of Schedule H.

    2. Attach Notice 1207 to Schedule H immediately below the caption area.

    3. Date stamp the Notice 1207 with the current date. Use any IRS date stamp other than a received date stamp.

    4. Remove the Schedule H from the batch and place it in the designated area.

      Note:

      Delete the received date, if present.

  8. When a "loose" Schedule H is received after April 15th, process the Schedule H with a "dummy" Form 1040. Dummy a Form 1040 following the instructions in (9) below.

  9. Prepare a "dummy" Form 1040 and Schedule 2 for a loose Schedule H when required to do so. Follow these procedures when dummying:

    1. Dummy Schedule 2 by entering the Schedule H, line 8a amount (or line 26 if Part II is completed), to Schedule 2, line 9.

    2. Dummy Form 1040 by completing the caption information using the information from the Schedule H name line and from the Part IV address area of Schedule H.

    3. Edit FS "1" or "2" , based on the Schedule H name line.

      Note:

      Do not edit the DSI code.

    4. Edit line 9 Schedule 2, amount to lines 23, 24, and 37 for Form 1040, from the Schedule H tax total. (If Part II is not completed, use the amount from line 8a, Schedule H. If Part II is completed, use the amount from line 26, Schedule H.)

    5. Edit CCC "3" .

    6. Edit RPC "Y" .

    7. If Schedule H is missing a valid signature or documentary evidence, correspond with Form 6001, using fill-in "32" , per Exhibit 3.11.3-18.

  10. When a loose Schedule H is received for a future tax period (e.g., TY24) send the Schedule H back to the taxpayer with Notice 1208.

    1. Edit the taxpayer's complete mailing address in the caption of Schedule H from the part IV address area of Schedule H.

    2. Attach Notice 1208 to Schedule H immediately below the caption area.

    3. Date stamp the Notice 1208 with the current date. Use any IRS date stamp other than a received date stamp.

    4. Remove the Schedule H from the batch and place it in the designated area.

      Note:

      Delete the received date, if present.

  11. Refer to the loose Schedule H editing instructions in IRM 3.11.3.44.16.1 when the loose Schedule H is for a prior tax year.

Prior Year Schedule H

  1. For TY22, " X" lines 1a and 3 when the amount is less than $2,400.

  2. For TY21, " X" lines 1a and 3 when the amount is less than $2,300.

  3. TY20 - 19, "X" lines 1a and 3 when the amount is less than $2,200.

  4. TY18, "X" lines 1a and 3 when the amount is less than $2,100.

  5. TY17 - 16, "X" lines 1a and 3 when the amount is less than $2,000.

  6. TY15 - 14, "X" lines 1a and 3 when the amount is less than $1,900.

  7. TY13 - 12, "X" lines 1a and 3 when the amount is less than $1,800.

  8. TY11 - 09, "X" lines 1a and 3 when the amount is less than $1,700.

  9. TY08, "X" lines 1a and 3 when the amount is less than $1,600.

  10. TY07 - 06, "X" lines 1a and 3 when the amount is less than $1,500.

  11. TY05, "X" lines 1a and 3 when the amount is less than $1,400.

  12. For TY09 and prior, edit the State Code from line 17, column (a), row 1 to line 17, column (a), row 2 when there is a state code in row 1 and both of the following conditions apply:

    1. A State Code and state reporting number are present in row 1, line 17, and

    2. A state reporting number is present in row 2, without a corresponding State Code.

  13. TY94 and prior, "X" the Schedule H when it has been filed.

Loose Schedule H
  1. Research prior year for a TC150. If TC150 has posted for the tax period, edit "TC150" in the upper left corner and route to Accounts Management.

  2. If no TC150 has posted for the tax period, dummy a Form 1040. (See IRM 3.11.3.44.15.)

    Exception:

    When a loose Schedule H is for TY20 or prior, forward it to the Statute Control Unit.

Schedule 8812 - Credit for Qualifying Children and Other Dependents

  1. The instructions provided in this subsection of the manual are for editing Schedule 8812.

  2. Edit Sequence Code "47" in the upper-right margin of Schedule 8812 if not preprinted.

Schedule 8812 - General Editing Procedures

  1. The following lines on Schedule 8812 are T-Lines and T-Compute Lines:

    T-Line T-Compute Line
    • Line 13 (TY21 Only)

    • Line 15 Checkbox

    • Line 18a

    • Line 18b

    • Line 21

    • There are no T-Compute lines for this form.

  2. If line 16b is less than $4,800, "X" the Schedule.

    Exception:

    Do not "X" Schedule 8812 when the check box on line 15 has been checked.

  3. Only one Schedule 8812 can be processed. If more than one is attached, combine related T-Line amounts onto one Schedule 8812 and delete those not used.

    Note:

    For TY18 and later, taxpayers can claim additional child tax credit only for qualifying children that have a Social Security number.

  4. Edit the total SS and Medicare Tax amounts from W-2 (boxes 4 & 6) or attachments on Line 21 when both of the following conditions are present:

    • Line 16b, Schedule 8812 is $4,800 or more

    • Line 21, Schedule 8812, is blank, dash, or zero and there is an amount on line 28 Form 1040

    Note:

    The notation of "FICA" on an attachment indicates Social Security tax withheld.

    (See Figure 3.11.3-118.)

  5. If unable to edit the amount on line 21 using instructions above, "X" line 28.

    Note:

    If you can determine all earned income is from self-employment or HSH or if there is an indication the taxpayer has filed Form 4029, take no action.

  6. Edit Audit Code "2" when Form 8862 is attached with Part III, CTC/ACTC portion of the form filled out.

    Figure 3.11.3-118

    This is an Image: 33440118.gif

    Please click here for the text description of the image.

Prior Year Schedule 8812 - General Editing Procedures

  1. For TY22 if line 16b is less than $4,500, "X" the Schedule.

    Exception:

    Do not "X" Schedule 8812 when the check box on line 15 has been checked.

  2. For TY22 edit the total SS and Medicare Tax amounts from W-2 (boxes 4 & 6) or attachments on Line 21 when both of the following conditions are present:

    • Line 16b, Schedule 8812 is $4,500 or more

    • Line 21, Schedule 8812, is blank, dash, or zero and there is an amount on line 28 Form 1040

  3. For TY21, do not X Schedule 8812.

    Note:

    Line numbers in this section refer to TY21 line numbers.

  4. For TY21 edit the total SS and Medicare Tax amounts from W-2 (boxes 4 & 6) or attachments on Line 21 when both of the following conditions are present:

    • Line 16b, Schedule 8812 is $4,200 or more

    • Line 21, Schedule 8812, is blank, dash, or zero and there is an amount on line 28 Form 1040

  5. For TY20 through TY18"X" the form when line 4 is less than $4,200.

  6. For TY20 through TY18 edit the total SS and Medicare Tax amounts from W-2 (boxes 4 & 6) or attachments on Line 9 when both of the following conditions are present:

    • Line 4, Schedule 8812 is $4,200 or more

    • Line 9, Schedule 8812, is blank, dash, or zero and there is an amount on line 28 Form 1040

  7. If unable to edit the amount on line 9 (TY21 line 21) using instructions above, "X" line 28 Form 1040.

    Note:

    If you can determine all earned income is from self-employment or HSH or if there is an indication the taxpayer has filed Form 4029, take no action.

  8. For TY17 and later, edit Audit Code "2" when Form 8862 is attached with Part III, Child Tax Credit/Additional Child Tax Credit portion of the form completed.

  9. For TY17 through TY12 - Schedule 8812, Part I, must have entries if Form 1040 or Form 1040A, line 6c, shows children with ITINs (or a continuation-type attachment), and the correlating checkbox for Child Tax Credit is marked. If no entries are present, correspond for a completed Schedule 8812 with Form 3531/6001-A, using fill-in 30, per Exhibit 3.11.3-18.

  10. For TY17 - 03, "X" the schedule/form when line 1 is less than $3,000.

    Exception:

    For TY17 through TY12, do not "X" the Form/Schedule when ITINs are present on line 6c and correlating checkbox for Child Tax Credit is marked, Form 1040 and Form 1040A regardless of the line 1 amount.

  11. For TY17 - 14, edit the total Social Security and Medicare tax amounts in dollars only from all Forms W-2 (boxes 4 and 6) or attachments on line 21 when both of the following conditions are present:

    • Line 1, Schedule 8812 is $3000 or more, and

    • Line 21, Schedule 8812 is blank, dash, or zero and there is an amount on line 28, Form 1040.

  12. If unable to edit the amount on line 7 using the instructions above, "X" line 28, Form 1040

    Note:

    If you can determine all earned income is from self-employment or HSH or if there is an indication the taxpayer has filed Form 4029, take no action.

  13. For TY02 - 01, "X" the form when line 1 is less than $1,800.

  14. For TY00 - 98, "X" the form when line 6 is less than $1,500.

  15. For TY97 or prior, "X" the form.

Form 8606 - Nondeductible IRAs

  1. The instructions provided in this subsection of the manual are for editing Form 8606.

  2. The following lines on Form 8606 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Spousal Indicator - edited to the left of the form title

    • Line 7

    • Line 15c

    • Line 16

    • Line 17

    • Line 18

    • Line 22

    • Line 15c

Form 8606, General Editing Procedures

  1. Only two Forms 8606 can be processed. One Form 8606 for each of:

    • Primary Taxpayer

    • Secondary Taxpayer

  2. Edit Sequence Code "48" when only one processable Form 8606 is present and the Sequence Code is not preprinted.

  3. When two processable Forms 8606 are present -- one for the primary taxpayer and one for the secondary taxpayer - edit the Sequence Code as follows (see Figure 3.11.3-119):

    1. Edit Sequence Code "48" for the primary taxpayer if not preprinted.

    2. Edit Sequence Code "49" for the secondary taxpayer.

  4. "X" Form 8606 when there are no significant T-Line entries present.

  5. Combine multiple Forms 8606 when there is more than one Form 8606 for any one taxpayer.

  6. When one Form 8606 is submitted for two taxpayers take one of the following actions:

    1. Allocate each taxpayer's amounts to separate dummy Forms 8606. "X" the Form 8606 with the combined taxpayer liability.

    2. Correspond for the correct allocation when it cannot be determined. When corresponding with Form 6001 use box U, with Form 3531 use box 17.

Spousal Indicator
  1. The Spousal Indicator is edited to the left of the form title.

  2. If the return is FS "2" edit the form as follows:

    1. If Form 8606 is for the primary taxpayer, edit Spousal Indicator "1" .

    2. If Form 8606 is for the secondary taxpayer, edit Spousal Indicator "2" . (See Figure 3.11.3-119.)

    Reminder:

    Always match the Spousal Indicator to the correct taxpayer.

    Figure 3.11.3-119

    This is an Image: 33440119.gif

    Please click here for the text description of the image.

Line 15c - Taxable Amount
  1. If line 15c is blank, compute and edit when there are entries leading to a total.

Prior Year Form 8606

  1. For TY97 and prior, "X" Form 8606 when it is filed.

Form 8863 - Education Credits (American Opportunity and Lifetime Learning Credits)

  1. The instructions provided in this subsection of the manual are for editing Form 8863.

  2. The following lines on Form 8863 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    Part I – Refundable American Opportunity Credit
    • Line 1


    Part II - Nonrefundable Education Credits
    • Line 10


    Part III - Student and Education Institution Information
    • Line 20

    • Line 21

    • Line 22, Column A, line 4

    • Line 22, Column B, line 4

    • Line 23

    • Line 24

    • Line 25

    • Line 26

    • Line 1

    • Line 10

Form 8863 - General Editing Procedures

  1. Edit Sequence Code "50" in the upper-right margin of Form 8863 if not preprinted.

  2. Only one Form 8863 can be processed.

    1. Process the first one only.

    2. "X" those forms not used.

      Exception:

      Up to three Parts III can be transcribed.

  3. Edit SPC "K" when the checkbox on line 7 is marked.

  4. Edit Audit Code "3" when Form 8862 is attached with Part IV, American Opportunity Tax Credit portion of the form completed.

Form 8863, Part I - Refundable American Opportunity Credit
  1. If line 1 is blank, edit the sum of all Parts III, line 30.

  2. If line 30 in any Part III is $2,501 or more, for a single student "X" line 1.

  3. If page 1 is missing, dummy page 1 if possible, unless corresponding for other missing information.

Form 8863, Part II - Nonrefundable Education Credits
  1. If line 10 is blank, edit the sum of all Parts III, line 31.

  2. If page 1 is missing or incomplete, dummy or complete page 1 if possible, unless corresponding for other missing information.

Form 8863, Part III - Student and Educational Institution Information
  1. Edit the Name Control and/or TIN if missing or incomplete, from Dependents section or from the caption area of Form 1040 or from Form 1098-T, if present, when it can be determined for whom the credit is being claimed.

  2. If page 2 is present and both the Name Control and TIN cannot be perfected or if it cannot be determined for whom the credit is being claimed, correspond for entries on lines 20 and 21.

    Note:

    Do not assume Form 8863 is for a single taxpayer with no dependents. Correspond instead.

  3. If page 2 is missing, correspond for Form 8863.

    Reminder:

    If the credit is not being claimed on the tax return, do not correspond.

  4. If page 1 is missing or incomplete, dummy or complete page 1 if possible, unless corresponding for other missing information.

Prior Year Form 8863

  1. For TY22 - TY09, edit SPC "K" when the checkbox on:

    1. TY22 - TY12, line 7 is marked.

    2. TY11 - TY10, line 13 is marked.

    3. TY09, line 15 is marked.

  2. For TY97 and prior, "X" Form 8863.

Form 4952 - Investment Interest Expense Deduction

  1. The instructions provided in this subsection of the manual are for editing Form 4952.

  2. The following lines on Form 4952 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Line 4e

    • Line 4g

    • There are no T-Compute lines on this form.

Form 4952 - General Editing Procedures

  1. Edit Sequence Code "51" in the upper-right margin of Form 4952 if not preprinted.

  2. Only one Form 4952 can be processed.

    1. Process the first one only.

    2. "X" those forms not used.

Line 4e - Gain from Disposition of Property
  1. Edit to line 4e an amount from the left of line 4e when the taxpayer has written in a different amount to the left of that line.

Form 8889 - Health Savings Accounts

  1. Up to two Form 8889 may be processed. Always edit Sequence Code "52" for the primary taxpayer and/or always edit "53" for the secondary taxpayer in the upper-right margin if not preprinted.

    Note:

    If unable to determine which taxpayer is filing Form 8889, edit Sequence Code "52" for the first Form 8889 and "53" for the second Form 8889.

  2. Combine multiple Forms 8889 when the taxpayer submits more than one Form 8889 for any one taxpayer. Delete those forms not used.

    Note:

    If you can determine one Form 8889 is the summary page for one taxpayer, do not combine forms.

  3. The following lines on Form 8889 are T-lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Lines 1 through 21

    • Line 16

Prior Year Form 8889

  1. For TY03 and prior, "X" Form 8889.

Form 8880 - Credit for Qualified Retirement Savings Contributions

  1. Edit Sequence Code "54" in the upper-right margin of Form 8880 if not preprinted.

  2. The following lines on Form 8880 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Lines 6a and 6b

    • There are no T-Compute lines on this form.

  3. Combine related T-line amounts when multiple Forms 8880 are attached. Delete those forms not used.

Prior Year Form 8880

  1. For TY01 and prior, "X" Form 8880.

Form 8995 / 8995-A / 8995-A Schedule C - Qualified Business Income Deduction

  1. Edit Sequence Code "55" on Form 8995, Sequence Code "55A" on Form 8995-A and "55D" on Form 8995-A, Schedule C in the upper right-hand corner if not preprinted.

  2. The following lines on Form 8995/8995-A/8995-A Schedule C are T-Lines and T-Compute Lines:

    Form 8995

    T-Lines T-Compute Lines
    • Line 2

    • Line 3

    • Line 5

    • Line 6

    • Line 7

    • Line 9

    • Line 12

    • Line 16

    • Line 17

    • Line 5

    • Line 9

    • Line 16

    • Line 17

     

    Form 8995-A

    T-Lines T-Compute Lines
    • Line 27

    • Line 28

    • Line 29

    • Line 31

    • Line 34

    • Line 38

    • Line 40

    • Line 31

    • Line 40

     

    Form 8995-A, Schedule C

    T Lines T-Compute Lines
    • Line 2

    • Line 6

    • Line 6

     

  3. Only one Form 8995 or 8995-A can be processed.

    1. Form 8995-A takes precedence over Form 8995.

    2. If both forms are attached with T-line entries present, process Form 8995-A and delete Form 8995.

    3. If multiple Form 8995-A or Form 8995 are attached, process the first one with T-line entries and delete the remaining.

  4. Only one Form 8995-A Schedule C can be processed. If multiple Form 8995-A Schedule C are attached, process the first one with T-line entries and delete the remaining.

  5. Delete Form 8995-A Schedule C when it is attached with a Form 8995.

  6. When an amount is present on Form 1040 line 13 and Form 8995-A Schedule C is attached and no Form 8995 or 8995-A is attached, correspond for Form 8995-A

  7. Edit FPC "H" when Form 8995-A Schedule A, Schedule B, Schedule C or Schedule D is attached to the return.

    Reminder:

    Delete Form 8995-A Schedule A, Form 8995-A Schedule B and Form 8995-A Schedule D when attached.

Prior Year Form 8995 / 8995-A / Form 8995-A Schedule C

  1. For TY19 and prior, "X" Form 8995-A Schedule C when attached.

  2. For TY18 and prior, "X" Form 8995, Form 8995-A or Form 8995-A Schedule C when attached.

Form 8888 - Allocation of Refund (Including Savings Bond Purchases)

  1. Edit Sequence Code "56" in the upper-right margin of Form 8888 if not preprinted.

  2. The following lines on Form 8888 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Lines 1a through 1d

    • Lines 2a through 2d

    • Lines 3a through 3d

    • Line 4

    • Lines 5a through 5c

    • Line 5c Checkbox

    • Lines 6a through 6c

    • Line 6c Checkbox

    • Line 7

    • There are no T-Compute lines on this form.

Prior Year Form 8888

  1. For TY05 and prior, "X" Form 8888.

Form 8978 - Partner’s Additional Reporting Year Tax

  1. Edit Sequence Code "57" on Form 8978 in the upper right-hand corner if not preprinted.

  2. The following lines on Form 8978 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Review Year Adj Code Checkbox (below entity)

    • Line 14

    • Line 16

    • Line 18

    • Line 14

    • Line 16

    • Line 18

  3. Only one Form 8978 can be processed. If multiple forms are attached, combine related T-Lines and delete those forms not used.

Prior Year Form 8978

  1. For TY18 and prior, "X" Form 8978 when attached.

Form 5405 - Repayment of the First-Time Homebuyer Credit

  1. Up to two Forms 5405 may be processed. Always edit Sequence Code "58" for the primary taxpayer and/or always edit "59" for the secondary taxpayer of Form 5405 if not preprinted.

  2. The following lines on Form 5405 are T-Lines and T-Compute Lines:

    Note:

    Do not "X" Form 5405 when T-line entries are present.

    T-Lines T-Compute Lines
    • TIN

    • Line 1

    • Line 3 Checkboxes

    • Line 4

    • Line 5

    • Line 7

    • Line 8

    • There are no T-Compute lines on this form.

  3. If the TIN is missing on Form 5405, edit the TIN for the primary and/or secondary taxpayer from attachments, if possible.

  4. If two TINs are present on Form 5405, delete the TIN of the secondary taxpayer unless the secondary taxpayer is the purchaser of the property.

  5. If the box on line 2 or any box under line 3 is marked, a date must be present on line 1. Correspond if missing. When corresponding with Form 6001 use box P, with Form 3531 use box 18.

  6. If a date is present on line 1, box 2 or any box under line 3 must be marked. Correspond if missing. When corresponding with Form 6001 use box P, with Form 3531 use box 18.

  7. If the box on line 2 is marked and no box under line 3 is marked, edit SPC "Z" if the claim is being made for the primary taxpayer. Edit SPC "7" if the claim is being made for the secondary taxpayer.

  8. If the box on line 2 is marked and entries are present in Part II, correspond using fill-in "20" , per Exhibit 3.11.3-18.

  9. If no box is marked under line 3, and line 7 shows a dollar amount, correspond for an explanation of the dollar amount on line 7. When corresponding with Form 6001 use box O, with Form 3531 use box 19-20.

  10. If the line 3 checkbox "e" is marked, a name must be present on the line. Correspond if missing. When corresponding with Form 6001 use box P, with Form 3531 use box 18.

  11. If the line 3 checkbox "h" is marked and any other box under line 3 is marked, circle the box "h" entry.

Prior Year Form 5405

  1. Form 5405 is used to claim the First-Time Homebuyer Credit (TY08 through TY11) and to repay it (TY10 and later). In TY11 the credit expired and for TY12 and later, Form 5405 is for the repayment of the First-Time Homebuyer Credit only.

  2. For TY2008 and prior, "X" Form 5405.

  3. For TY11 - TY10, follow the instructions below.

  4. If the TIN is missing on Form 5405, edit the TIN for the primary and/or secondary taxpayer from attachments, if possible.

  5. If two TINs are present on Form 5405, delete the TIN of the secondary taxpayer unless the secondary taxpayer is the purchaser of the property.

  6. For line A -- Address of Qualifying Home, if the address present is a foreign address, "X" Form 5405.

  7. If the taxpayer marked the line C checkbox "Yes" , and the purchase date of the property is after 4/30/2010 and before 10/1/2010 (or after 4/30/2011 and before 7/1/2011 with line D checkbox marked "Yes" ), a copy of the binding contract and a properly executed settlement statement (Form HUD-1 or similar) must be attached.

    If And Then
    A complete settlement statement (Form HUD-1 or similar) is present indicating the following:
    • All parties' names

    • Property address (U.S.)

    • Contract sales price

    • Date of purchase (after 4/30/2010 and before 10/1/2010) or (after 4/30/2011 and before 7/1/2011 with line D checkbox marked "Yes" )

    The binding contract is not attached,
    • Edit Audit Code "I" (eye).

  8. For TY2011 - 2009, if only page 2 of Form 5405 is attached and entries are present on lines 14 through 18, do not correspond for page 1 of Form 5405. Edit Sequence Code "58" for the primary taxpayer and "59" for the secondary taxpayer in the upper right corner of page 2.

  9. If the box on line 12 is marked and no boxes under line 13 are marked, edit SPC "Z" if the claim is being made for the primary taxpayer. Edit SPC "7" if the claim is being made for the secondary taxpayer.

  10. If line 13 checkbox "h" is marked and any other box under line 13 is marked, circle the box "h" entry.

Form 8919 - Uncollected Social Security and Medicare Tax on Wages

  1. Up to two Form 8919 may be filed with a return. Always edit Sequence Code "61" for the primary taxpayer and/or always edit "62" for the secondary taxpayer if not preprinted.

  2. When more than one Form 8919 is present for the same taxpayer, combine to a single Form 8919. "X" the form not being used.

  3. The following lines on Form 8919 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Taxpayer TIN

    • Lines 1 through 3, Columns (a) through (f)

    • Line 6

    • Line 8

    • Line 13

    • Line 6

    • Line 13

  4. Edit the TIN from the caption on Form 1040 when the TIN is missing, illegible or other than 9 digits. If the TIN is not present in the caption, search Forms W-2 and other attachments for the missing TIN.

    Note:

    Edit a newly issued ITIN, if necessary.

  5. Ensure Form 8919 is complete. This includes the TIN and entries present on lines 1 through 3, columns (a) through (f), 6 and 8. If Form 8919 is incomplete and you are unable to edit this information from attachments, edit Audit Code "Z" .

Prior Year Form 8919 - Uncollected Social Security and Medicare Tax on Wages

  1. For TY06 and prior, "X" Form 8919.

Form 8958 - Allocation of Tax Amounts Between Certain Individuals in Community Property States

  1. Edit Sequence Code "63" in the upper-right corner of Form 8959 if not preprinted.

  2. The following lines on Form 8958 are T-Lines and T-Compute Lines:

    Note:

    Do not "X" Form 8958 when T-lines entries are present.

    T-Lines T-Compute Lines
    • Spouse's or Partner's First Name

    • Spouse's or Partner's Last Name

    • Spouse's or Partner's Social Security Number

    • There are no T-Compute lines on this form.

  3. Edit Action Code "430" when Form 8958 is attached to a return and there is a spouse or RDP SSN listed in column B or C with a significant amount in that column.

  4. If the taxpayer included the spouse's or partner's first and last names in either box, separate the names into the first and last name boxes.

Prior Year Form 8958 - Allocation of Tax Amounts Between Certain Individuals in Community Property States

  1. For TY11 and prior, "X" Form 8958.

Form 461 - Limitation on Business Losses

  1. Edit Sequence Code "64" on Form 461 in the upper right-hand corner if not preprinted.

  2. The following lines on Form 461 are the T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Line 8 through 12

    • Line 16

    • Line 9

    • Line 12

    • Line 16

  3. Only one Form 461 can be processed. If multiple forms are attached, combine related T-Lines and delete those forms not used.

Prior Year Form 461

  1. For TY20 and prior, "X" Form 461 when attached.

Form 8941 - Credit for Small Employer Health Insurance Premiums

  1. Up to two Forms 8941 may be filed with a return. Always edit Sequence Code "65" for primary taxpayer and/or always edit Sequence Code "66" for the secondary taxpayer on Form 8941 if not preprinted.

  2. The following lines on Form 8941 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Identifying Number (Top Right)

    • A - SHOP (Small Business Health Options Program) Checkbox

    • B - Employment Taxes Employer Identification Number

    • C - Two-Year Declaration Checkbox

    • Line 1

    • Line 2

    • Line 3

    • Line 4

    • Line 5

    • Line 10

    • Line 13

    • Line 14

    • Line 15

    • Line 16

    • There are no T-Compute lines on this form.

  3. Edit the TIN from the caption on Form 1040 when the TIN is missing, illegible or other than 9 digits. If the TIN is not present in the caption, search Forms W-2 and other attachments for the missing TIN.

    Note:

    Edit a newly issued ITIN, if necessary.

  4. If multiple Forms 8941 are present with a return, combine primary taxpayer's Forms 8941 together. Combine secondary taxpayer's Forms 8941 together for a total of two Forms 8941.

  5. If the taxpayer answered question "A" and/or C, edit a code from the table below to the left of each question in the left margin:

    Edit Code Description
    1 Only Box "Yes" is checked
    2 Only Box "No" is checked
    3 Both Yes and No boxes are checked

Prior Year Form 8941- Credit for Small Employer Health Insurance Premiums

  1. For TY09 and prior, "X" Form 8941.

Form 6252 - Installment Sale Income

  1. Edit Sequence Code "67" in the upper-right corner of Form 6252 if not preprinted.

  2. The following lines on Form 6252 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Line 1

    • Line 2a - 2b

    • Line 7

    • Line 19

    • Line 21

    • Line 23

    • Line 7

    • Line 19

  3. Only one Form 6252 can be processed. If multiple forms are attached, process the first one with significant T-line entries and delete those forms not used.

Line 7 - Sell Price Less Mortgage and Debts

  1. When line 7 is blank, dash, or zero, compute and edit by subtracting line 6 from line 5.

Line 19 - Gross Profit Percentage

  1. When line 19 is blank, dash, or zero and an entry is present on line 16, compute and edit by dividing line 16 by line 18.

  2. When a entry is present or edited on line 19, edit that entry as a 5-digit decimal in the margin to the right of line 19, (do not edit the decimal point). See chart for examples.

    Line 19 Entry Edit in Right Margin
    1.0 10000
    0.91 (or .91) 09100
    0.0258 (or .0258) 00258
    0.54321 (or .54321) 05432
    85% 08500
    54% 05400

Prior Year Form 6252

  1. For TY18 and prior, "X" Form 6252 when attached.

Form 8910 - Alternative Motor Vehicle Credit

  1. Edit Sequence Code "68" in the upper-right corner of Form 8910 if not preprinted.

  2. The following lines on Form 8910 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Line 1, column (a)

    • Line 1, column (b)

    • Line 2, column (a)

    • Line 2, column (b)

    • There are no T-Compute lines on this form.

  3. Do not "X" Form 8910 when T-line entries are present.

Prior Year Form 8910 - Alternative Motor Vehicle Credit

  1. For TY22 - TY14:

    • If line 1 of Form 8910 shows a claim for a bicycle, Moped, or motorcycle, circle the entry on Form 8910.

    • Edit Unallowable Code "79" when multiple instances of the same Vehicle Identification Number (VIN) appears on attached Form 8910 and/or Form 8936.

    • If line 6e on Schedule 3 is blank, edit the amount from line 15, Form 8910 to line 6e, Schedule 3.

  2. For TY10 and prior, "X" Form 8910.

Form 8936 - Clean Vehicle Credits

  1. Edit Sequence Code "69" in the upper-right corner of Form 8936 if not preprinted.

  2. The following lines on Form 8936 are T-lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Line 4

    • Line 7

    • Line 20

    • Line 4

Prior Year Form 8936 - Qualified Plug-In Electric Drive Motor Vehicle Credit

  1. For TY22-TY11, edit Sequence Code "69A" and follow Form 8936 Schedule A instructions. See IRM 3.11.3.62.

  2. For TY22 and prior, do not "X" Form 8936 when T-line entries are present.

  3. Edit Unallowable Code "79" when multiple instances of the same Vehicle Identification Number (VIN) appears on attached Form 8910 and/or Form 8936.

  4. For TY10 and prior, "X" Form 8936.

Form 8936 Schedule A - Clean Vehicle Credit Amount

  1. Edit Sequence Code "69A" in the upper-right corner of Form 8936 Schedule A if not preprinted.

  2. Up to 2 Form 8936 Schedule A can be transcribed.

  3. Edit the first 2 Form 8936 Schedule A and delete those not used.

  4. The following lines on Form 8936 Schedule A are T-lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Line 2

    • Additional Form 8936 Schedule A Indicator (margin to the right of line 2)

    • Lines 9 - 10

    • Line 17

    • Line 26

    • Line 17

    • Line 26

  5. Edit the additional Form 8936 Schedule A Indicator "1" to the first schedule attached, when more than two Form 8936 Schedule A are attached.

  6. Edit Unallowable Code "79" when multiple instances of the same Vehicle Identification Number (VIN) appears on attached Form 8936 Schedule A.

Line 10 - Business/Investment Use Percentage

  1. When an entry is present on line 10, edit as a 3 digit whole number. See chart below:

    Entered As Edit As
    0.00001 000
    0.001 000
    0.01 001
    0.99999 099
    1.00000 100
    .7 070
    .12345 012

Prior Year Form 8936 Schedule A - Clean Vehicle Credit Amount

  1. For TY22 and prior, "X" Form 8936 Schedule A.

Form 8867 - Paid Preparer's Due Diligence Checklist

  1. Edit Sequence Code "70" in the upper-right corner of Form 8867 if not preprinted.

  2. The following lines on Form 8867 are T-Lines and T-Compute Lines:

    Note:

    Do not "X" Form 8867 when T-lines entries are present.

    T-Lines T-Compute Lines
    • EIC Column Checkbox

    • CTC Column Checkbox

    • AOTC Column Checkbox

    • HOH Column Checkbox

    • Line 15

    • There are no T-Compute lines on this form.

  3. Only one Form 8867 can be processed. Process the first Form 8867 and "X" forms not used.

Prior Year Form 8867

  1. For TY11 and prior - "X" Form 8867.

Form 8959 - Additional Medicare Tax

  1. Edit Sequence Code "71" in the upper-right corner of Form 8959 if not preprinted.

  2. The following lines on Form 8959 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Lines 1 through 3

    • Lines 7 and 8

    • Lines 13 and 14

    • Line 17

    • Line 18

    • Line 19

    • Lines 23 and 24

    • There are no T-Compute lines on this form.

Prior Year Form 8959

  1. For TY11 and prior, "X" Form 8959.

Form 8960 - Net Investment Income Tax - Individuals, Estates and Trusts

  1. Edit Sequence Code "72" in the upper-right corner of Form 8960 if not preprinted.

  2. The following lines on Form 8960 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Investment Income checkboxes

    • Lines 1 through 3

    • Lines 4a and 4b

    • Lines 5a through 5c

    • Lines 6 through 8

    • Lines 9a through 9c

    • Line 10

    • Line 11

    • Line 13

    • Line 16

    • Line 17

    • Line 8

    • Line 11

  3. If the taxpayer has checked any of the boxes in Part I (Investment Income), edit a code from the table below to the right of the checkboxes in the right margin:

    Edit Code Description
    1 Section 6013(g) election and no other box checked
    2 Reg. Section 1.1411-10g and no other box checked
    3 Both Section 6013(g) and Reg. Section 1.411-10g boxes checked
    4 Section 6013(h) election and no other box checked
    5 Both Section 6013(h) and Reg. Section 1.1411-10g boxes checked

Prior Year Form 8960

  1. For TY12 and prior, "X" Form 8960.

Form 8962 - Premium Tax Credit (PTC)

  1. Edit Sequence Code "73" in the upper-right corner of Form 8962, page 1, if not preprinted.

  2. Edit Sequence Code "74" in the upper-right corner of Form 8962, page 2, only when T-line entries are present on page 2.

  3. Edit RPC "D" if "QSEHRA" is noted on top of Form 8962.

  4. Only one Form 8962 is processable. If more than one is attached, combine related T-line amounts onto one Form 8962 and delete those not used.

    Note:

    Check for page 2 entries before deleting the form.

  5. If Form 8962 is blank or entries are present in only Part I (lines 1-8b) of Form 8962 (No T-line entries in Part II, lines 11 through 23, columns A, B, and F), "X" Form 8962.

    Note:

    If any T-line entries are present on page 2 of Form 8962, do not "X" page 1 of Form 8962.

Form 8962 Page 1

  1. The following lines on Form 8962 Page 1 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Married filing separately PTC exception checkbox

    • Line 2b

    • Line 4 checkbox

    • Line 8b

    • Line 11 a, b, f

    • Line 12 a, b, f

    • Line 13 a, b, f

    • Line 14 a, b, f

    • Line 15 a, b, f

    • Line 16 a, b, f

    • Line 17 a, b, f

    • Line 18 a, b, f

    • Line 19 a, b, f

    • Line 20 a, b, f

    • Line 21 a, b, f

    • Line 22 a, b, f

    • Line 23 a, b, f

    • Line 24

    • Line 25

    • There are no T-Compute lines on this form.

  2. If the taxpayer has marked the box above Part I for the married filing separately exception, edit "1" to the right of the checkbox in the right margin.

  3. If the taxpayer has marked any box or no box on line 4, edit a code from the table below to the right of the checkboxes in the right margin:

    Edit Code Description
    A Alaska only checked
    B Hawaii only checked
    C Other 48 states and DC is checked, no box is checked, or multiple boxes are checked

Form 8962 Page 2

  1. The following lines on Form 8962 Page 2 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Line 30 a - g

    • Line 31 a - g

    • Line 32 a - g

    • Line 33 a - g

    • Line 35 a - d

    • Line 36 a - d

    • There are no T-Compute lines on this form.

  2. In Part IV, the field length for the policy number on lines 30a, 31a, 32a and 33a is 15 characters. For policy numbers that exceed 15 characters, take the following action:

    1. From right to left, count 15 characters. The characters to be counted include alpha, numeric, hyphen, colon, and underscore.

    2. Edit a red slash (/) so there are 15 characters after the slash.

  3. If the taxpayer has written out the name of the month in column "c" (start month) or "d" (stop month) for lines 30, 31, 32, 33, and/or 35 or 36, convert the months listed based on the chart below. Edit the number to the right of the alpha word:

    01 January 02 February 03 March 04 April
    05 May 06 June 07 July 08 August
    09 September 10 October 11 November 12 December

  4. If a percentage is present in columns (e), (f), and/or (g) for lines 30, 31, 32 or 33, convert the percentage to a 3 digit format. Edit the 3 digits to the right of the percentage in that column. For example:

    If the taxpayer enters: Edit:
    9% 009
    67% 067
    80% 080
    .5 050
    0.35 035
    .90 090
    1.00 100

    Note:

    There is no need to edit the decimal.

Prior Year Form 8962

  1. For TY21, edit RPC "M" if Line A, Unemployment Compensation box is checked.

  2. For TY13 and prior, "X" Form 8962.

Form 5695 - Residential Energy Credits

  1. The instructions provided in this subsection of the manual are for editing Form 5695. These instructions include the general editing and perfecting procedures for Form 5695

  2. Edit Sequence Code "75" in the upper-right hand corner if not preprinted.

  3. The following lines on the Form 5695 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Lines 1 - 4

    • Check box Line 5a

    • Line 5b

    • Check box Line 7a

    • Line 8

    • Left of Line 10

    • Line 12

    • Line 16

    • Checkbox Lines 17a - 17c

    • Line 18a

    • Lines 19a and 19c

    • Line 20a

    • Check box Lines 21a - 21b

    • Line 22a

    • Line 23a

    • Line 24a

    • Line 25a

    • Check box Line 26a

    • Line 26b

    • Lines 29a - 29c

    • Line 16

Line 10 - Kilowatt Capacity

  1. Using the taxpayer entry in the decimal field to the left of line 10, edit to the left of line 10 an 8-digit whole number comprised of the last 6 digits to the left of the decimal point followed by the first 2 digits to the right of the decimal point.

    Note:

    If there are less than 6 digits to the left of the decimal point or less than 2 digits to the right of the decimal point, add enough leading and/or trailing zeros to meet the requirement.

    Kilowatt Capacity Entered as Decimal Kilowatt Capacity Edited as a Whole Number
    123 00012300
    222.33 00022233
    333.987654321987 00033398
    .7 00000070
    .987654321987 00000098
    1234567890 56789000
    First 6 digits closest to the left of the decimal and first 2 digits to the right of the decimal.
    1234567890.987654321987 56789098
    First 6 digits closest to the left of the decimal and first 2 digits to the right of the decimal.

Prior Year Form 5695

  1. For TY22 and prior, "X" Form 5695.

Form 965-A - Individual Report of Net 965 Tax Liability

  1. Edit Sequence Code "76" in the upper-right hand corner if not preprinted.

  2. The following lines on Form 965-A are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Part I, column a, (first 5 lines)

    • Part I Additional Data Indicator, Edited in margin to the right of Part I, column e, line 1

    • Part I, column j, (first 5 lines)

    • Part I, column k, (first 5 lines)

    • Part IV, column f, (first 5 lines)

    • Part IV Additional Data Indicator, Edited in margin to the right of Part IV, column i, line 1

    • Total Line, page 3

    • There are no T-Compute lines on this form.

  3. Edit Part 1 Additional Data Indicator of "1" when more than 5 lines of data are present in Part I.

  4. Edit Part IV Additional Data Indicator of "1" when more than 5 lines of data are present in Part IV.

  5. Only one Form 965-A can be processed. If multiple forms are attached, delete all but the first one with T-line entries.

Prior Year Form 965-A

  1. For TY18 and prior, "X" Form 965-A.

Form 9000 - Alternative Media Preference

  1. Edit Sequence Code "77" in the upper-right hand corner if not preprinted.

  2. The following lines on Form 9000 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Line 1

    • Taxpayer Indicator, edited in right margin by SSN

    There are no T-compute Lines

  3. Up to two Form 9000 can be processed.

  4. Edit an indicator in the right margin beside the SSN as follows:

    1. Edit "1" for Primary taxpayer.

    2. Edit "2" for Secondary taxpayer.

    3. If more than one SSN is present, edit the indicator based on the first SSN listed.

  5. Do not "X" Form 9000 when T-line entries are present.

Schedule LEP - Request for Change in Language Preference

  1. Edit Sequence Code "77A" in the upper-right hand corner if not preprinted.

  2. The following lines on Schedule LEP are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Line 1

    • Taxpayer Indicator, edited in right margin by SSN

    There are no T-compute Lines

  3. Up to two Schedules LEP can be processed.

  4. Edit an indicator in the right margin beside the SSN as follows:

    1. Edit "1" for Primary taxpayer.

    2. Edit "2" for Secondary taxpayer.

    3. If more than one SSN is present, edit the indicator based on the first SSN listed.

  5. Do not "X" Schedule LEP when T-line entries are present.

Form 8997 - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments

  1. Edit Sequence Code "78" in the upper-right hand corner if not preprinted.

  2. The following lines on Form 8997 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Part I, 1st line Column a, b, d, e, and f

    • Part I, Right Margin, Column f (Part I Additional Info Indicator

    • Part I, Line 2, Column e-f

    • Part II, 1st line Column a, b, d, e, and f

    • Part II, Right Margin, Column f (Part II Additional Info Indicator

    • Part II, Line 2, Column e-f

    • Part III, 1st line Column a, b, d, e, and f

    • Part III, Right Margin, Column f (Part III Additional Info Indicator

    • Part III, Line 2, Column e-f

    • Part IV, 1st line Column a, b, d, e, and f

    • Part IV, Right Margin, Column f (Part I Additional Info Indicator

    • Part IV, Line 2, Column e-f

    • Part I, Line 2, Column e-f

    • Part II, Line 2, Column e-f

    • Part III, Line 2, Column e-f

    • Part IV, Line 2, Column e-f

  3. For each of Part I, II, III, and IV, compute and edit line 2, columns "e" and "f" when they are blank and there are entries leading to a total.

Prior Year Form 8997 - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments

  1. For TY20 and prior, "X" Form 8997 when attached.

Form 4136 - Credit for Federal Tax Paid on Fuels

  1. The instructions provided in this subsection of the manual are for editing Form 4136. These instructions include the general editing and perfecting procedures for Form 4136.

  2. The following lines on the Form 4136 are T-Lines and T-Compute Lines:

    T-Lines T-Compute Lines
    • Lines 1 through 16 column (d)

    • There are no T-Compute lines for this form.

Form 4136 - General Editing Procedures

  1. Edit Sequence Code "79" in the upper-right margin of Form 4136 if not preprinted.

  2. Only one Form 4136 can be processed. If more than one Form 4136 is attached to the return:

    1. Combine all related T-Line amounts.

    2. "X" those forms not transcribed.

  3. Edit the amount from line 17, Form 4136 to Schedule 3 line 12 when Form 4136 shows an entry and Schedule 3 line 12 is blank.

  4. Correspond for the type of fuel the taxpayer is claiming on Form 4136 when both of the following conditions are present:

    • Lines 1 through 16 are blank, and

    • There is a significant amount on line 17.

    When corresponding with Form 6001 use box O, with Form 3531 use box 19-20.

Prior Year Form 4136

  1. Do not convert prior year Forms 4136.

  2. For TY01, "X" any significant entries on lines 4b or 4c of Form 4136.

  3. For TY98 through TY71, "X" any amounts for Diesel Powered Vehicle Credits.

Prior Year Returns

  1. The instructions provided in this subsection of the manual are for editing TY22 and prior tax returns.

  2. When editing prior year Forms 1040, 1040A, 1040EZ, for transcription it is sometimes more practical to use Form 6114, Prior Year and Conversion Form 1040 Edit Sheet, than it is to renumber the return and dummy the Schedules 1-3 by using the Form 6114-A. Use one of the following methods for editing:

    1. Re-number original return and use Form 6114-A as necessary or,

    2. Use Form 6114 and Form 6114-A as necessary.

  3. When renumbering Form 1040, 1040A or 1040EZ, lines must reflect current year Form 1040 line numbers, including transferring information from T-lines on the original return to the correct lines on Form 6114-A.

    Note:

    It is not necessary to delete a line number if there is no entry or it does not correspond to a current year line number.

Prior Year Returns - General Information

  1. Prior year returns are:

    1. Calendar year returns filed for tax periods ending on or before 2212.

    2. Fiscal year returns filed for tax periods 2311 and earlier.

  2. All prior year editing procedures are based on the tax year of the return. Unlike the tax period, which is based on the end of the return's tax period, the tax year (TY) is determined by the beginning of the return's tax period.

    1. For calendar-year returns the tax period year is the same as the tax year. For example, a return filed for January 1, through December 31, 2022, has a tax year of "TY22" and a tax period of "2212" .

    2. For a fiscal year return, the tax year is always earlier than the tax period. For example, a return filed for June 1, 2021, through May 31, 2022, has a tax year of "TY21" and a tax period of "2205" .

  3. Determine and edit the received date in "MMDDYY" format when it is missing.

    Note:

    All prior year returns must have a Received Date.

    Note:

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

  4. When a return is received for a tax year earlier than TY62:

    1. Attach Form 4227 and note "Non-ADP tax year" .

    2. Edit Action Code "620" .

    Note:

    Only tax returns for TY62 and later can be processed.

  5. Do not edit RPC "V" or SPC "Y" on computer-generated prior year returns.

  6. Do not correspond or research on TY13 and prior tax returns.

    Exception:

    Correspond for signature regardless of tax year. See IRM 3.11.3.14.5.

  7. When corresponding on prior year returns:

    • Refer to original form type and line numbers in prior year correspondence.

    • Use Form 6001-A, Letter 12C Correspondence Action Sheet (PY), to generate Letter 12C. Convert or renumber prior to corresponding. See IRM 3.11.3.5.2.2.

    • Use Form 3531 when corresponding for missing signature(s). Do not convert or renumber prior to corresponding. See IRM 3.11.3.5.2.1.

Prior Year Returns-Form 6114 General Information
  1. When using Form 6114 and Form 6114-A, all T-Line information must be transferred.

    Exception:

    Do not transfer PECF, Dependent information, Third Party information, Direct Deposit information, or Paid Preparer information.

  2. When using Form 6114, edit information that is not transferred following line-by-line instructions. See Exhibit 3.11.3-19 for further information. The following will be edited on the original Form 1040:

    1. SPC, FPC and CCC Codes

    2. DSI

    3. e-File Waiver Indicator

    4. Dependent Positions

    5. Paid Preparer Code

  3. The following will be edited on page 1 of Form 6114:

    1. RPC Code

    2. Action Code

    3. Audit Code

    Note:

    When using Form 6114, edit a check mark in the upper right hand corner of the Form 6114 when one or more of the Age Blind Indicator boxes are marked on page 2 of the original return (TY17 and prior).

  4. When using Form 6114, staple beneath the PECF area. When present, staple any Schedules 1 - 3 or Form 6114-A, directly behind the original Form 1040, 1040A, or 1040EZ.

Statutory Protection Cases

  1. The refund statute on Form 1040, Form 1040A or Form 1040EZ returns generally expire three years after the return due date. The refund statute generally expires three years after either the return was filed, or two years from the date the tax is paid, whichever is later. For purposes of Code & Edit, consider a prior year return to be a potential statute protection case when both of the following conditions apply:

    1. The return due date was two years and nine months from the current date.

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

      Example:

      The statute of limitations may expire on April 15, 2024, for tax period 2012 returns. A 2012 return that has not been cleared by the Statute Protection Unit is a potential statute protection case beginning on January 15, 2024, (i.e., 90 days before the expiration of the statute).

  2. For refund returns (including those with extensions) received after the three-year statute period has expired, edit the postmark date as the received date only if the postmark date would have made the return "timely" . Otherwise, edit the received date.

  3. If the tax period exceeds 33 months prior to the current processing month and year, then:

    1. If the return has a Statute Control stamp, edit RPC "K" and continue processing the return.

      Note:

      Look for indications the return has been cleared by Statute such as; "Cleared for Assessment" , "Cleared by Statute" , "No Statute Issue" , "Delinquent Return Cleared by Statute" , or similar statement. A Statute Received Date stamp alone, without one of the above indicators, does not indicate it was cleared by Statute.

    2. If the return does not have a Statute Control stamp, take the following action:

    If the return is Then
    Unnumbered, Continue processing the return. Do not edit RPC K. Do not route to Statute Unit.
    Numbered, Continue processing the return. Do not edit RPC K. Do not route to Statute Unit.

    Note:

    Do not send returns to Statute Control for clearance if there are no money amounts present or any of the following statements are present on the return: "OIC/COIC" (Centralized Offer in Compromise),"ICS" (Integrated Collection System), "NFR" (Non-filer Reject), "SFR/6020(b)" , "Secured by Exam/Collections" , "Secured by TE/GE" , "Secured by TE/GE EP Exam" , "Dummy Return" , "TC59X" , or returns with SPC B (edited by RIVO or ITVA), a Form 14039 attached, ID theft notated on the return or in a statement, or Form 8948 stating return was rejected for primary and/or secondary TIN previously used.

  4. Edit RPC "K" on potential statute control returns when received from RIVO/ITVA with or without a Statute Control Stamp.

  5. If Form 12412, Operations Assistance Request (OAR), is received from TAS and the return is a potential statute control return but is not stamped "Cleared by Statute" contact the TAS employee listed on the OAR for rejection of the OAR and then send back to TAS for clearance by the Statute Unit unless conditions noted in (3) Exception above are present.

  6. If the return has been cleared by the Statute Protection Unit, do not correspond for missing information when Letter 105C is attached.

Prior Year Return Editing Procedures

  1. When no specific instructions are given, follow the current year procedures.

  2. Line references in these prior year instructions are to the current year line numbers, unless otherwise specified.

  3. Underline the pre-printed tax period when the taxpayer used the correct form for the tax period being reported. Edit the tax period to the right of the preprinted year in "YYMM" format when either of the following conditions apply:

    1. The taxpayer used a form for a tax period other than the one being reported.

    2. The tax period is missing or illegible.

  4. For all tax years, renumber or convert all T-Lines to agree with current year forms and schedules.

    1. Renumbering - Mark out the line number(s) on the prior year form/schedule and edit the current year T-Line number(s). Refer to Job Aid 2431-010.

      Note:

      It’s only necessary to renumber the lines with transcribable information. Make sure to line through any duplicate line numbers that may occur when renumbering.

    2. Converting - Convert to a current year form or use Form 6114, Prior Year and Conversion Form 1040 Edit Sheet, if marking out the line numbers would make transcription more difficult.

      Note:

      Use current year forms and schedules when renumbering is not practical.

  5. For TY18, Schedule 4, 5, and 6 are obsolete. When renumbering, Schedule 4 will be renumbered as lines 4-21 of Schedule 2. Schedule 5 will be renumbered as lines 9-15 of Schedule 3. Schedule 6 will be deleted unless it contains 3rd Party Designee information.

  6. Take one of the following actions when a T-Line with no current year equivalent contains a significant entry:

    1. "X" the amount when present on a current year T-Line.

    2. Do not renumber the line as a T-Line when renumbering a prior year form/schedule.

    3. Do not edit the amount to Form 6114 or a blank current year form when converting.

  7. For TY14 and later, compute and edit amounts following the line-by-line instructions.

  8. For TY13 and prior, do not correspond or manually compute T-Lines.

    Exception:

    Correspond for signature regardless of tax year. See IRM 3.11.3.14.5.

  9. For returns with notations indicating military operations or combat zones, see IRM 3.11.3.6.1.1.

  10. When editing from prior year Forms W-2, ensure correct amounts are transferred by referring to box titles in addition to box numbers.

Form 1040 - Pages 1 and 2
  1. For returns meeting the criteria for DSI editing, edit the DSI on 2017 and prior Form 1040 (1040A), in the blank area, directly above line 6c, column (4).

  2. Edit a DSI Code of "1" when the taxpayer indicates on the return or attachment that they are claimed on another person's return.

    Reminder:

    When applicable, the DSI is still required if RPC "L" has been edited on TY17 and prior returns.

  3. For TY17 and prior, take one of the following actions for editing the DSI (See Figure 3.11.3-120):

    If And Then
    The "Yourself" box on line 6a is not marked, FS is 1, 3, 4, or 5, The personal exemption is not claimed, and the box on line 6d is "0" , dash or blank, Edit DSI "1" .
    The "Yourself" box on line 6a is not marked, FS is 2 or 6, "1" personal exemption is claimed Edit DSI "1" .
    The "Yourself" box on line 6a is marked, FS is 2 or 6, "1" personal exemption is claimed and the Spouse box on line 6b is not marked, Edit DSI "1" .

    Figure 3.11.3-120

    This is an Image: 33440120.gif

    Please click here for the text description of the image.

  4. For TY18 and later, dependent position 2 (child who did not live with you), is not applicable and will always be edited as "0" when it is necessary to edit subsequent dependent positions.

  5. For TY17 and prior, always delete all entries on exemption position lines to the right of the line 6 area. See Figure 3.11.3-121.

    Figure 3.11.3-121

    This is an Image: 33440121.gif

    Please click here for the text description of the image.

  6. For TY17 and prior, edit the number of children who "did not live with you due to divorce or separation" to dependent position 2. If Form 8332, Form 2120, or copy of divorce decree is attached, edit FPC "A" . See Figure 3.11.3-122.

    Note:

    Form 8332 or Form 2120 must show entries.

    Figure 3.11.3-122

    This is an Image: 33440122.gif

    Please click here for the text description of the image.

  7. On decedent returns for TY19 and prior, or TY20 received after April 15, 2024, do not correspond for documentary evidence, since the statute of limitations has expired.

  8. Use the standard deduction or exemption amounts for the correct prior year when using current year instructions that refer to these amounts. See IRM 3.11.3.73.3.1.2.

Wages - Line 1
  1. Use the table below for editing conditions on line 1, Form 1040:

    Condition on Line 1 Action
    Entry on line 1, no Form W-2 attached. Take no action. Form W-2 is not required for line 1. (May be required as support for earned income when EIC is claimed.)
    (See IRM 3.11.3.14.2.32.)
    Line 1 is blank. Edit amounts from Wages, tips and other compensation box on Forms W-2.

    Exception:

    Do not edit to line 1 if Form W-2 income is for a minister, insurance salesman, or statutory employee and the income is reported elsewhere on the return.

    Amount deducted from line 1. If the same adjustment amount is also deducted on Schedule 1, Part II, adjust line 1 to include the amount.
    Self-Employment Income (See Exhibit 3.11.3-11 for an extensive listing of types of self-employment.)
    1. Subtract from line 1 and add to Schedule 1 line 9.

      Note:

      It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

    2. If amount is $434 or more and Schedule SE is not attached or reported, also edit RPC "N" .

    3. If Form 1099-NEC is attached with or without a notation and an amount is present in box 1, Form 1099-NEC, edit RPC "N" unless the amount is less than $434 or Schedule SE is present. On prior year returns, amount may be found on Form 1099-MISC, box 7.

      Note:

      Do not edit RPC "N" if any of the following conditions exist:
      - Self-Employment and non-self-employment cannot be broken down.
      - Taxpayer reported self-employment income on line 1 and included the amount on Form 8919.

  2. Use the table below for editing taxpayer notations on line 1, Form 1040:

    Noted by Taxpayer on Line 1 Action
    Adoption Benefit (AB) Take no action.
    Combat Pay Excluded Edit CCC "Y" and an Action Trail.
    Dependent Care Benefits (DCB) Take no action.
    Deferred Compensation (DFC) Edit RPC "B" .
    Disability Pension
    1. Delete from line 1 if indicated to be nontaxable.

    2. If statement indicates treatment as retirement pension, delete from line 1 and add to line 5b.

      Note:

      If Disability Pension is identified on line 5a or 5b, take no action.

    3. If Form 1099-R, box 7, has Distribution Code 3, take no action.

    Foreign Employer Compensation (FEC) Take no action.
    Fringe Benefits (FB) Take no action.
    Gambling (Gross: losses not subtracted)
    1. Subtract gambling amount from line 1 and add to Schedule 1 line 9.

      Note:

      It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

    2. If Schedule A is attached, see IRM 3.11.3.18.1.

    Gambling (Net: winnings minus losses)
    1. No indication of a professional gambler:

      1. If a gain or a loss, "X" line 1.

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

        Note:

        It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

      3. If net amount is zero, and no gross amount is indicated on the dotted portion of line 1, and:
        • Form W-2G is attached, edit CCC "Y" and an Action Trail.
        • Form W-2G is not attached, correspond for gross winnings
        with Form 3531/6001, using fill-in 7, per Exhibit 3.11.3-18.

    2. Indication of professional gambler:

      1. Subtract gambling amount from line 1 and add to Schedule 1 line 3.

        Note:

        It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

      2. Correspond for Schedule C, if not attached.

      3. If Schedule SE is not attached or reported, also correspond for SE tax liability when the amount is $434 or more. For Form 6001, use box W. For Form 3531, check box 16.

    Household Employee Income (HSH) Edit SPC "E" .

    Note:

    "HSH" may appear to the left of line 1, or on line 1 with a dollar amount present.

    Note:

    HSH is an acceptable source for EIC.

    Medicaid Waiver Payment (MWP), Notice 2014-7, IRC 131, In-Home Health Services (IHHS), In-Home Support Services (IHSS), Difficulty of Care payment Take No Action

    Note:

    This income is an acceptable source for EIC.

    Non-Disability Pension Move the amount to line 5b. (See Figure 3.11.3-64.)
    Non-Employee Compensation
    1. Subtract from line 1 and add to Schedule 1 line 9.

      Note:

      It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

    2. If amount is $434 or more (with or without Form 1099-NEC), and Schedule SE is not attached or reported, also edit RPC "N" .

      Note:

      Do not edit RPC "N" if Self-Employment and non - self-employment cannot be broken down.

    Non-Taxable Income:
    • Accident and health insurance proceeds

    • "Black lung" benefits

    • Casualty insurance and other reimbursements

    • Child support

    • Damages awarded for physical injury or sickness

    • Federal Employees' Compensation Act (FECA) payments

    • Interest on state or local government obligations

    • Public Aid

    • Supplemental Security Income (SSI)/SSI Disability

    • Tax-Sheltered Annuities

    • Temporary Assistance for Needy Families (TANF)

    • VA Benefits

    • Welfare Benefits/Payments

    • Workforce Payments

    • Worker's Compensation

    Subtract all income identified as nontaxable from line 1, add to Schedule 1, line 9.
    Pension See Disability or Non-Disability Pension.
    Prisoner Income (PRI) Edit RPC "B" .
    See IRM 3.11.3.6.1.6.
    Railroad Retirement Benefits
    1. If gross and taxable amounts with a difference of $1 or more can be determined, move to lines 5a and 5b.
      See IRM 3.11.3.14.2.12.

    2. Otherwise, edit the amount to line 5b.

    Scholarship (SCH), Fellowship, Grant, or Stipend
    1. Edit RPC "B" .

    2. If indicated to be nontaxable, subtract from line 1 and correct any other taxpayer adjustments and edit RPC "G" .

    Sick Pay Take no action.
    Social Security Benefits
    1. If gross and taxable amounts can be determined, move to lines 6a and 6b.

    2. Otherwise, move the amount to line 6b.

    Strike Pay/Benefits Take no action.
    Sub-Pay TRA (Repayment of Supplemental Unemployment Benefits (SUB)) If repayment is indicated on Schedule 1 line 24z and it is for SUB amounts received in:
    • Tax period of return - delete the repayment amount and adjust line 25 to exclude it.

    • Prior tax period - do not adjust line 1.

      Note:

      If the year of payments is not noted, assume they were made in the tax period of the return.

    Unemployment Compensation Subtract from line 1 and add to Schedule 1 line 7.

    Note:

    It may be necessary to dummy Schedule 1 if not attached. If corresponding for other missing information, do not dummy Schedule 1, instead correspond.

Line 12 - Standard Deduction
  1. Refer to Job Aid 2431-010 for Standard Deduction amounts for the tax year of the return. Do not refer to current year Standard Deduction chart.

  2. For TY17 and prior, do not correspond for a missing Schedule A if DSI "1" has been edited.

Non-Itemized Charitable Contributions Deduction
  1. Line 12b for TY21, if an amount is present, take no action.

  2. Line 10b for TY20, if an amount is present and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, "X" the amount.

Line 13 - Qualified Business Income Deduction
  1. For TY18 and prior, Forms 8995/8995-A are not required.

Line 19 - Nonrefundable Child Tax Credit (Schedule 8812)
  1. For TY17 through TY14 - If ITINs are shown for children claiming eligibility for Child Tax Credit on Dependent Lines, Form 1040, correspond for missing Schedule 8812.

Line 27 - Earned Income Credit
  1. TY14 and later - Schedule EIC must be attached when an amount is present on line 27 and the correspondence tolerance is met. Use the following chart to determine when correspondence is required for the missing Schedule EIC.

    If the tax year is Then correspond when
    2022 The AGI is equal to or greater than $16,480 ($22,610 for FS 2) and less than $53,057 ($59,187 for FS 2) or the EIC amount claimed is more than $560.
    2021 The AGI is equal to or greater than $21,430 ($27,380 for FS 2) and less than $51,464 ($57,414 for FS 2) or the EIC amount claimed is more than $1502.
    2020 The AGI is equal to or greater than $15,820 ($21,710 for FS 2) and less than $50,954 ($56,844 for FS 2) or the EIC amount claimed is more than $538.
    2019 The AGI is equal to or greater than $15,570 ($21,370 for FS 2) and less than $50,162 ($55,952 for FS 2) or the EIC amount claimed is more than $529.
    2018 The AGI is $15,270 ($20,950 for FS 2) and $49,194 ($54,884 for FS 2) or the EIC amount claimed is more than $519.
    2017 The AGI is $15,010 ($20,600 for FS 2) and $48,340 ($53,930 for FS 2) or the EIC amount claimed is more than $510.
    2016 The AGI is between $14,880 ($20,430 for FS 2) and $47,995 ($53,505 for FS 2) or the EIC amount claimed is more than $506.
    2015 The AGI is between $14,820 ($20,330 for FS 2) and $47,747 ($53,267 for FS 2) or the EIC amount claimed is more than $503.
    2014 The AGI is between $14,590 ($20,020 for FS 2) and $46,997 ($52,427 for FS 2) or the EIC amount claimed is more than $496.

  2. TY14 and later -Correspond for source of earned income documentation if the amount claimed on line 27 is based solely on wages that are not supported by at least one document.

    Exception:

    Do not correspond if able to determine source of earned income through internal research unless corresponding for other missing information.

Line 27c - Prior Year Earned Income (PYEI)
  1. Prior Year Earned Income (PYEI) is valid for TY17 - TY21.

  2. When being used by the taxpayer, prior year earned income (PYEI) is entered on line 27c. If found elsewhere on the return, delete where found and edit to line 27c.

    Exception:

    For TY19-TY20, PYEI can be claimed on line 28. When found on line 28, do not move or renumber to line 27c

Line 28 - Additional Child Tax Credit (Schedule 8812)
  1. For TY21, when an amount is present, Schedule 8812 must be attached. Correspond if missing.

  2. For TY20 and prior, correspond for a missing Schedule 8812 when there is an amount present on line 28 and three or more children with SSNs are claimed on Dependent lines, Form 1040.

  3. For TY17 - TY14, correspond for a missing Schedule 8812 when there is an amount present on line 28, and either condition below applies:

    • ITINs are shown for children claiming eligibility for Child Tax Credit on Dependent lines, Form 1040.

    • Three or more children with SSNs are claimed on Dependent lines, Form 1040.

Line 29 - Refundable American Opportunity Credit (Form 8863)
  1. For TY09 and prior, "X" the refundable education credit.

    Note:

    Do not confuse this with the nonrefundable education credit on Schedule 3, line 3.

Line 30 - Recovery Rebate Credit
  1. This credit is valid on TY21-TY20 only.

  2. If a nonnumeric entry is present on line 30, "X" the line.

Line 31 (not transcribed) - Amount from Schedule 3, Line 15
  1. For TY22, when there is an indication line 31 includes an amount for Deemed Payment Election (DPE) follow instructions below:

    1. If "IRA22DPE" or "CHIPS22DPE" (or something similar) are noted on line 31 (or elsewhere on the return), edit CCC "3" and RPC "5" .

    2. If "IRA22TRE" (or something similar) is noted on line 31 (or elsewhere on the return), edit RPC "5" .

    3. After fully editing the return, pull for rebatch under the original program code and "DPE" as the Batch ID.

  2. When dummying a missing Schedule 3:

    If Then
    Schedule H is attached For TY21-TY22:
    Edit line 8e to Schedule 3 line SLF
    Edit line 8f to Schedule 3 line SL2
    Form 7202 is attached For TY21:
    Edit line 24 to Schedule 3 line SLF
    Edit Line 35 to Schedule 3 line SLF
    Edit Line 58 to Schedule 3 line SL2
    Edit Line 69 to Schedule 3 line SL2

Schedule 1 - Additional Income and Adjustments to Income
  1. Follow the instructions below for editing the taxpayer's adjustments to income.

Line 13 - Health Savings Account Deduction
  1. For TY03 and prior, "X" the Health Savings Account deduction.

Line 20 - IRA Deduction
  1. For TY22 - TY19, "X" the amount on line 20 when it is other than $6,000 or $7,000 ($12,000, $13,000 or $14,000 for FS 2) and one of the indicators in (4) below with an equal deferred compensation amount - appears on Form W-2.

  2. For TY18 - TY13, "X" the amount on line 20 when it is other than $5,500 or $6,500 ($11,000, $12,000 or $13,000 for FS 2) and one of the indicators in (4) below with an equal deferred compensation amount - appears on Form W-2.

  3. For TY12 - TY08, "X" the amount on line 20, when it is other than $5,000 or $6,000 ($10,000, $11,000 or $12,000 for FS 2) and one of the indicators in (4) below with an equal deferred compensation amount - appears on Form W-2.

  4. Refer to the following Form W-2 indicators:

    • "D" or Section 401(k)

    • "E" or Section 403(b)

    • "F" or Section 408(k)(6)

    • "G" or Section 457(b)

    • "Q" or "Housing/Subsistence" or "Combat Pay"

    • "S" or "SIMPLE" plan

    • "T" or employer-paid "qualified adoption expenses"

    • Section 125, Cafeteria Plan (CAF)

    • Section 414(h), Mandatory Salary Deferral ("PERS" Public Employees Retirement System)

    • Thrift Savings Plan or "TSP"

Schedule 2 - Additional Taxes
  1. Follow the instructions below for editing additional taxes.

  2. For TY20 returns, do not correspond for missing Form 8962 when an amount is present on Schedule 2, line 2.

  3. For TY18, Schedule 4 will be renumbered as Schedule 2, Part II, lines 4-21; Sequence Number "04" will always be deleted.

  4. If Schedule 2 is attached with no significant entries, it may be deleted and Schedule 4, if present with significant entries, will be edited with Sequence Number "02" .

Line 11 - Additional Medicare Tax - Form 8959
  1. For TY20-TY19, when an amount is present on Schedule 2, line 8 (TY18, Schedule 4, line 62; TY17 and prior, line 62), and box "a" is marked, Form 8959 must be attached. Correspond for Form 8959 if missing.

    Note:

    If both boxes "a" and "b" are marked or, if neither box is marked, and neither Form 8959 or Form 8960 is attached, use box 19 on Form 3531 or use paragraph O on Form 6001-A.

  2. When renumbering line 11, if both boxes "a" and "b" are marked, use the amount from Form 8959, line 18.

Line 12 - Net Investment Income Tax - Form 8960
  1. For TY20-TY19, when an amount is present on Schedule 2, line 8 (TY18, Schedule 4, line 62; TY17 and prior, line 62), and box "b" is marked, Form 8960 must be attached. Correspond for Form 8960 if missing.

    Note:

    If both boxes "a" and "b" are marked or, if neither box is marked, and neither Form 8959 or Form 8960 is attached, use box 19 on Form 3531 or use paragraph O on Form 6001-A.

  2. When renumbering line 12, if both boxes "a" and "b" are marked, use the amount from Form 8960, line 17.

Lines 17a through 17z - Other Additional Taxes
  1. Delete an amount for "Recapture Taxes" where found and edit it to line 18.

  2. Edit amounts from Form 4970 to line 18.

Line 19 - Additional Tax from Schedule 8812
  1. For TY21 only, if an amount is present on line 19, Schedule 8812 must be attached. If missing correspond for Schedule 8812.

Schedule 3 - Additional Credits and Payments
  1. Follow the instructions below for editing additional credits and payments.

  2. For TY18, Schedule 5 will be renumbered as Schedule 3, Part II, lines 9-15; Sequence Number "05" will always be deleted.

  3. If Schedule 3 is attached with no significant entries, it may be deleted and Schedule 5, if present with significant entries, will be edited with Sequence Number "03" .

Line 5a - Residential Clean Energy Credit (Form 5695, Line 15)
  1. For TY22 and prior, if an amount is claimed on line 5a, Form 5695 must be attached. If missing, and the amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond for Form 5695.

    Note:

    If an amount is claimed on line 5a and only page 2 Form 5695 is attached, delete the amount on line 5a.

Line 6a through 6z- Other Nonrefundable Credits
  1. TY11 - TY10 - If the taxpayer claims an amount on line 6 for DC Homebuyer Credit (Form 8859) and also claims an amount from 5405, line 10 on Form 1040, "X" line 6 if Form 5405, Part 1, line B, shows a date after the received date or if it shows a date prior to May 1, 2010, unless Box D, Part I, Form 5405 is checked.

  2. When credits on Form 8834, Form 8910, or Form 8936 are claimed on line 6e, 6f, or 6i, follow the instructions below.

    Note:

    There is no tolerance for Form 8834, Form 8910, and Form 8936.

    1. Edit Unallowable Code "79" when multiple instances of the same Vehicle Identification Number (VIN) appears on Form 8834, Form 8910, and Form 8936.

    2. If line 1 of Form 8834, Form 8910, or Form 8936 shows a claim for a bicycle, Moped or motorcycle, circle the entry on Form 8834, Form 8910, and/or Form 8936.

    3. If line 2 of Form 8834, Form 8910, or Form 8936 shows a placed into service date that does not fall within the tax year of the return, "X" the entry on Form 8834, Form 8910, and/or Form 8936.

  3. If Form 8834 is claimed on line 6i the form must be attached, if missing correspond.

  4. Entry on line 6e is valid only for TY22 and prior. If Form 8910 is claimed on line 6e:

    If And Then
    Form 8910 is not attached,   For TY14-TY22, correspond.
    Form 8910 is attached, Amounts are present on lines 12 through 15 and no date is present on lines 3a/3b, For TY14-TY22, correspond
    Form 8910 is attached, The date on line 3a/3b is before 2/17/2009, or other than the tax period of the return, "X" the amount on line 6e.

  5. If Form 8936 is claimed on line 6f:

    If And Then
    Form 8936 is not attached,   For TY 14 and later, correspond.
    Form 8936 is attached, Amounts are present on lines 5 through 23 and no date is present on line 3a/3b, For TY 14 and later, correspond.
    Form 8936 is attached, The date on line 3a/3b is before 12/31/2008 or other than the tax period of the return, "X" the amount on line 6f.

Line 11 - Excess Social Security Tax (SST)
  1. For TY14 and later, verify the SST amount, if claimed. Use the table in (3) and the worksheet in (4) to determine the excess SST amount.

  2. "X" an amount claimed for excess SST if there is no supporting documentation and the information cannot be found through internal research.

  3. For TY22 - TY14, "X" the amount on line 11 when the amount claimed on line 1a, Form 1040, is less than the Maximum SST Wages in the following table.

    Year Maximum SST Wages Maximum SS Tax Withheld
    2022 147,000 9,114.00
    2021 142,800 8,853.60
    2020 137,700 8,537.40
    2019 132,900 8,239.80
    2018 128,400 7,960.80
    2017 127,200 7,886.40
    2016 118,500 7,347.00
    2015 118,500 7,347.00
    2014 117,000 7,254.00

  4. For TY22 - TY14, use the worksheet below and the table in (3) above to verify the excess SST amount claimed on Schedule 3 line 11.

    Verifying Excess Social Security Tax Primary Taxpayer Secondary Taxpayer
    1. Add all social security tax withheld for each employer. This tax is shown in box 4, Form W-2. Enter the total here. __________ __________
    2. Enter any uncollected social security tax on tips from W-2, Box 12, Codes A and M. __________ __________
    3. Add lines 1 and 2. __________ __________
    4. Social security limit (Maximum SS Tax Withheld) __________ __________
    5. Subtract line 4 from line 3. Enter the result here (if the result is negative, enter zero here.) __________ __________
    6. Excess amount. Combine Primary and Secondary taxpayers line 5 amount. __________

Line 13a - Deemed Payment Elections (DPE)
  1. For TY22, for fiscal year filers filing a short period return, can use line 13a for Deemed Payment Elections (DPE). If "IRA22DPE" , "CHIPS22DPE" , or "IRA22TRE" are noted on line 13a, Form 1040, line 31, or elsewhere on the return, see IRM 3.11.3.73.3.1.11 for editing instructions.

Line 13b (SFL) - Credit for Qualified Sick and Family Leave Wages (Schedule H)
  1. For TY20-TY22Renumber original line 13b (12b for TY20) as "SFL"

  2. For TY22, when an amount is claimed on line 13b (SFL), Schedule H must be attached. If not attached, correspond for missing Schedule H

  3. For TY20-TY21, when an amount is claimed on line 12b (TY20) or line 13b (TY21) (SFL), Schedule H and Form 7202 must be attached. If not attached, correspond for missing form(s).

Line 13g - Credit for Child and Dependent Care Expenses (Form 2441)
  1. For TY21 only, when an amount is present, Form 2441 must be attached with an entry on line 10. If not attached, correspond for Form 2441.

Line 13h (SL2) - Qualified Sick and Family Leave Credits (Schedule H and Form 7202)
  1. For TY21 - TY22, when an amount is claimed on original line 13h:

    • Renumber original line 13h as "SL2"

    • Schedule H and Form 7202 must be attached. If not attached, correspond for missing form(s).

Form 1040A
  1. Form 1040A was obsoleted in 2018. All Form 1040A must be converted to Form 1040.

  2. The instructions provided in this subsection of the manual are for converting Form 1040A to Form 1040.

  3. All numbered lines on Form 1040A are transcribed, except for the following lines:

    • Line 22

    • Lines 24 through 26

    • Line 30

    • Line 37

    • Line 47

  4. There are also nine T-Compute lines on Form 1040A. These are:

    • Line 15 - Total income

    • Line 20 - Total Adjustments

    • Line 21 - Adjusted Gross Income

    • Line 27 - Taxable income

    • Line 36 - Total Credits

    • Line 39 - Total tax

    • Line 46 - Total payments

    • Line 48a - Refund amount

    • Line 50 -"Amount You Owe"

  5. When converting, follow current year Form 1040 and Schedule 1 - 3 instructions, unless there are instructions to the contrary.

  6. Circle the "A" on the Form 1040A when converting to Form 1040.

    Note:

    If a return is received with either Page 1 or Page 2 of Form 1040 attached, it is still necessary to follow conversion and renumbering instructions for the whole document.

  7. Follow the guidelines in IRM 3.11.3.8.1 for information on editing Received Dates.

  8. Use the following tables to convert Form 1040A to a Form 1040.

    Income: Edit income (less amounts for items listed below) on line 1a. (Do not recompute line 1a from attachments, such as Forms W-2.)
    • Disability Pension Edit on line 1a.
    Entry, line 10, Form 1040A of $1 or more Edit on line 7 and follow line 7, Form 1040 instructions. See IRM 3.11.3.14.2.15.
    • Capital Gains Distribution (Form 1099-DIV attached or a statement present) Edit the amount to line 7. Edit RPC "T" .
    • IRA Distributions (Form 1099-R attached or a statement present) Edit the gross amount on line 4a and the net amount on line 4b.
    • Non-Disability Pension Edit the gross amount on line 5a and the net amount on line 5b.
    • Rents and Royalties (Form 1099-MISC attached or a statement present) Edit the amount on Schedule 1, line 5 and prepare a dummy Schedule E if missing. See IRM 3.11.3.15.5.
    • Unemployment Edit the amount on Schedule 1, line 7.
    • Social Security Benefits Edit the gross amount on line 6a and the net amount on line 6b.
    • Gambling (Form W-2G attached or "Gambling" noted) Edit the gross amount on Schedule 1, line 9.
    • Self-Employment income, Non-Employee Compensation, or Fishing Boat Proceeds Edit the amount on Schedule 1, line 9. Edit RPC "N" if $434 or more and Schedule SE is not attached or reported.
    • Prizes or awards (Form 1099-MISC attached or a statement present) Edit the amount on Schedule 1, line 9.
    • Alaska Permanent Fund Edit the amount on Schedule 1, line 9.
    Payment of one of the following claimed: Edit the amount on:
    • Estimated tax Line 26
    • Earned Income Credit Line 27
    • Additional Child Tax Credit Line 28
    • Extension Payment Schedule 3, line 10
    • Excess SST or RRTA Schedule 3, line 11
    • An amount entered for Penalty for Underpayment of Estimated Tax Line 38

  9. Refer to Job Aid 2431-010 for an illustration of renumbering and converting Form 1040A T-lines and T-Compute lines and all related transcribed schedules, dollars and cents editing requirements.

Form 1040A - General Information
  1. For specific line by line instructions see IRM 3.11.3.73.3.1.

  2. Refer to the following instructions when the taxpayer attaches any of the following:

    Form/Schedule IRM Reference
    Schedule B IRM 3.11.3.19
    Schedule R IRM 3.11.3.25
    Form 2441 IRM 3.11.3.29
    Form 8615 IRM 3.11.3.38
    Schedule EIC IRM 3.11.3.43
    Schedule 8812 IRM 3.11.3.45
    Form 8606 IRM 3.11.3.46
    Form 8863 IRM 3.11.3.47
    Form 8880 IRM 3.11.3.50
    Form 8888 IRM 3.11.3.52
    Form 8867 IRM 3.11.3.63
    Form 8962 IRM 3.11.3.66

  3. Some special conditions on returns will require special editing procedures. Taxpayers are instructed to note certain conditions on the return which you must identify. Edit these returns using instructions in IRM 3.11.3.6.1 and IRM 3.11.3.6.2.

  4. Refer to the decedent return instructions in IRM 3.11.3.10 when any of the following are present:

    • The word "Deceased" is written on the return

    • A date of death is found on the return

    • "Surviving spouse" is written in the caption or the signature area

    • There is any other indication the taxpayer has died

Form 1040EZ
  1. Form 1040EZ was obsoleted in 2018. All Form 1040EZ must be converted to Form 1040.

  2. The instructions provided in this subsection of the manual are for converting Form 1040EZ to Form 1040.

  3. All lines on Form 1040EZ are transcribed except for line 5.

    Note:

    On line 5, the You and Spouse boxes are transcribed.

  4. There are also six T-Compute lines on Form 1040EZ. These are:

    • Line 4 - Adjusted gross income

    • Line 6 - Taxable income

    • Line 9 - Total payments

    • Line 12 - Total Tax

    • Line 13a - Refund amount

    • Line 14 -Balance due amount

  5. Follow the guidelines in IRM 3.11.3.73.1 for editing the following return information:

    1. Tax period

    2. Received date

  6. Follow guidelines in IRM 3.11.3.73.3 for line by line editing information.

  7. Circle out "EZ" on the form when converting to Form 1040.

  8. Use the following table to convert Form 1040EZ to a Form 1040.

    Income: Edit the income (less amounts for items listed below) on line 1. (Do not recompute line 1 from attachments, such as Forms W-2.)
    Unemployment Compensation Edit the amount on Schedule 1, line 7.
    Self-Employment/Non-Employee Compensation Edit the amount on Schedule 1, line 9.
    Alaska Permanent Fund Edit the amount on Schedule 1, line 9.
    Earned Income Credit (EIC) Edit on Line 27

  9. Refer to Job Aid 2431-010 for an illustration of converting Form 1040EZ T-lines and T-Compute lines and all related transcribed schedules, dollars and cents editing requirements.

Dependency Status Indicator (DSI)
  1. TY17 - TY1989 place an "X" in the applicable "You" and/or "Spouse" boxes on line 5 when neither of the boxes is marked and either of the following conditions is present:

    1. There is a statement the taxpayer is claimed on another person’s return.

    2. The amount on line 5 is a significant amount of less than the amount listed in Job Aid 2431-010 for the applicable tax year or the amount shown on the form. (See Figure 3.11.3-123.)

      Note:

      If Filing Status 2 and no taxpayer statement is present and the amount on line 5 is less than the Filing Status 2 amount in Job Aid 2431-010 for the applicable tax year or the amount shown on the form, place an "X" in the "You" box, only.

    Figure 3.11.3-123

    This is an Image: 33440123.gif

    Please click here for the text description of the image.

  2. For TY1988 - TY1987 if line 5 is blank and line 6 is zero, check the "Yes" box on line 5

  3. For TY1986 and prior, take no action.

Form 1040EZ, General Information
  1. Some special conditions on returns will require special editing procedures. Taxpayers are instructed to note certain conditions on the return which you must identify. Edit these returns using instructions in IRM 3.11.3.6.1 and IRM 3.11.3.6.2.

  2. Refer to the decedent return instructions in IRM 3.11.3.10 when any of the following are present:

    • The word "Deceased" is written on the return.

    • A date of death is found on the return.

    • "Surviving spouse" is written in the caption or the signature area.

    • There is any other indication the taxpayer has died.

Attachment Guide

Attachment Guide

Transcribed Form 1040 Series forms are not reflected in this Attachment Guide; follow instructions relating to other attached documents:

  • Do not detach attachments when sending the return back to the taxpayer unless specifically told to do so in line by line instructions.

    Exception:

    Follow remittance instructions in IRM 3.11.3.3.6(2) or (6) when remittance is discovered.

  • The Form/Documents information applies to the series, unless otherwise indicated.

Form/Document Detach? Information
CP 01A, "We've Assigned You an Identity Protection Personal Identification Number" (IP-PIN)   Ensure the name(s) and tax year on the CP 01A match the tax return.
  1. If both match and there is no IP-PIN present on the return, edit in the boxes designated for the Identity Protection PIN.

  2. If the tax year does not match, without related correspondence, move CP 01A to the back of the return and continue processing.

  3. If the name(s) do not match, and no related correspondence is present, detach for work leader who will destroy CP 01A according to classified waste procedures. If the IP-PIN is present on the tax return meeting this criteria, delete the IP-PIN.

Note:

For 2017 and prior, if FS 2 and both spouses have an IP-PIN, edit the primary taxpayer’s IP-PIN.

• With related correspondence requiring a response Yes Route CP 01A and related correspondence to KCSPC, Stop Number 6566 P5
• Without related correspondence No Move CP 01A to the back of the return and continue processing.
CP 01H, ID Theft Lock No Route the entire return to ECU (Entity Control Unit)

Exception:

Do not route when CP 01H has been X’d

CP 11/711, Math Error, Balance Due of $5 or more
a) If Form 1040-X attached
b) not attached
No Route the entire return to:
a) 1040-X Unit
b) ICT
CP 12/712, Overpaid Math Error Notice
a) If Form 1040-X attached
b) not attached
No Route the entire return to:
a)1040-X Unit
b) ICT
CP 13/713, Error on Return
a) If Form 1040-X attached,
b) If Form 1040-X not attached,
No Route the entire return to:
a)1040-X Unit
b) ICT
CP 14/14H/714 Balance Due Notice No Route entire return to ICT
CP 22 Series, Adjustment Notice    

If tax year on Notice is NOT the same as tax year on return
Yes Route to Accounts Management

If tax year on Notice is the same as tax year on the return
No Route entire return to Accounts Management
CP 23, ES Discrepancy, Balance Due of $5 or more No Route to Accounts Management
CP 54, SSN and Name Inquiry No Route the entire return to ECU (Entity Control Unit)

Exception:

Do not route when CP 54 has been X’d

CP 59, Master File Generated 1st TDI Notice Yes Route to AUSPC CSCO (Stop 5501) or Fresno Campus Support, CSCO (Stop 81105) Include in the action trail, tax form, tax period, tax id number and balance due if available.

Exception:

If using CP 59 or Form 15103 (see IRM 3.11.3.14.5(8)h)) as support for a valid signature(s) on the return do NOT detach, continue processing the return.

CP 63 Refund Hold Letter Yes Route to AUSPC CSCO (Stop 5501). Include in the action trail, tax form, tax period, tax id number and balance due if available. Continue processing return.
CP 501 through 504 or 501H, 503H Yes Leave an action trail including the tax ID number and balance due if available. Route the CP Notice to AUSPC CSCO Stop 5501 or Fresno Campus Support, CSCO Stop 81105. Continue processing return.
CP 515 through 518, Request for Information About a Tax Form Yes Leave an action trail including the tax ID number and balance due if available. Route the CP Notices to AUSPC CSCO (Stop 5501) or Fresno Campus Support, CSCO (Stop 81105). Continue processing return.
CP 521 or 523/ 523H, Notice of Past Due Payment Yes Route to CSCO.

Note:

Route to AUSPC CSCO (Stop 5501) or Fresno Campus Support, CSCO (Stop 81105).

CP 2000, Proposed Adjustment to Income or Withholding No Move to front and route entire return to Underreporter Function.

Note:

Route to campus in the return address.

CP 2501, Underreporter Initial Contact Letter Yes Route to Underreporter Function.
K-1, Shareholder's/Beneficiary's/Partner's Share of Income, Credits, Deductions, etc.    
a. Not related Form 1041, Form 1065, or Form 1120 being detached No a. K-1 is support for Schedule B, Schedule D, or Schedule E, or Form 4797 or Form 6251
b. Related Form 1041, Form 1065, or Form 1120 being detached Yes b. K-1 remains attached to related Form 1041, Form 1065, or Form 1120.
K-1, Loose - Shareholder's/Beneficiary's/Partner's Share of Income, Credits, Deductions, etc. NA Route to Receipt & Control
LTR 0012C, Individual Return Incomplete for Processing: Form 1040, Form 1040A and Form 1040EZ No Route to Rejects.

Exception:

Do not route to Rejects. Continue processing the return (use no-reply procedures when applicable) if:
- "Process as Original" is present on the return.
- The letter was generated by another service center.

LT 16 ACS Balance Due Notice Yes Route to return address found on letter, continue processing return.
LT 18 ACS Request for Information about a Tax Form Yes Route to return address found on letter, continue processing return.
LTR 105C, Claim Disallowed No See IRM 3.11.3.73.2(6)
LTR 324C, Amended (Numbered) Return Incomplete for Processing Form 1040-X No Route to originator
LTR 0369C (Loose) - Estimated Tax Penalty (F2210) Explained   When this letter is returned by the taxpayer, send to Accounts Management (AM).
LTR 0854C (Loose) - Penalty Waiver or Abatement Disallowed/ Appeals Procedure Explained   When this letter is returned by the taxpayer, send to Accounts Management (AM).
LTR 2358C, TDI Closing Letter    
a. Unnumbered return No a. Route to Exam.
b. Numbered return No b. Edit Action Code "331" .
Notice or LTR 2566, ASFR 30-Day Proposed Assessment No Route entire return to ASFR.

Note:

If "Process as Original" is present on the return, do not route. Continue to process the return.

LTR 2626C, Underreported Income/Penalty and Interest Additional and Final Correspondence No Route to AUR
LTR 2894C, Return Incomplete for Processing - Form 1040-SS or Form 1040-PR No Route to AUSC Stop 6126
Notice or LTR 3219C, Statutory Notice of Deficiency No Route entire return to ASFR. See IRM 3.11.3.6.2.20.1

Note:

If "Process as Original" is present on the return, do not route. Continue to process the return.

LTR 4087C, Individual Return Incomplete for Processing: Form 1040, Form 1040A, Form 1040EZ, Form 1040-NR and Form 1040-NR-EZ No Route to AUSC Stop 6126
LTR 4883C, Potential ID Theft During Original Processing No Route entire response to Austin RIVO Stop 6579.
Response may include photocopies of Passport, SS cards, drivers license, etc. and Form 14039.
LTR 5071C, Potential Identity Theft No Route entire response to Austin RIVO Stop 6579.
Response may include photocopies of their SS cards, drivers license, etc., and Form 14039.
LTR 5216C, Identity Authentication Incomplete No Route entire response to Austin RIVO Stop 6579.
Response may include photocopies of Passport, SS cards, drivers license, etc. and Form 14039.
LTR 5447C/5447C SP, Potential Identity Theft During Original Processing; Foreign Address No Route entire response to Austin RIVO Stop 6579.
Response may include photocopies of Passport, SS cards, drivers license, etc. and Form 14039.
LTR 5747C/5747C SP, Potential Identity Theft During Original Processing No Route entire response to Austin RIVO Stop 6579.
Response may include photocopies of Passport, SS cards, drivers license, etc. and Form 14039.
LTR 6002, ACA request for amended return No Route to Receipt and Control for rebatch to 1040-X
LTR 6167C, Identity Authentication Incomplete No Route entire response to Austin RIVO Stop 6579.
Response may include photocopies of Passport, SS cards, drivers license, etc. and Form 14039.
Notice 2566, ASFR 30-Day Proposed Assessment No Route entire return to ASFR.

Note:

If "Process as Original" is present on the return, do not route, continue to process the return.

SSA-1099, Social Security Benefit Statement No Support for line 6a, Form 1040 (line 14a, Form 1040A)
SS-4, Application for Employer Identification Number (EIN) Yes Route to Receipt and Control
SS-5, Application for Social Security Number (SSN) Yes Route to Receipt and Control
SS-8, Determination of Worker Status for purposes of Federal Employment and Income Tax Withholding Yes Route to Receipt and Control
W-2, Wage and Tax Statement    
a. Any related copy No a. Take no action.
b. Unrelated or loose copy Yes b. Route to Accounts Management
c. Employer's copy submitted with Sch. H Yes c. Route to Receipt and Control.
W-2AS, W-2GU, American Samoa or Guam Wage and Tax Statement    
a. Unnumbered return No a. Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

b. Numbered No b. Edit Action Code "651" . Do not code any further.
W-2CM, Commonwealth of Northern Mariana Islands Wage and Tax Statement    
a. Unnumbered return No a. Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

b. Numbered return No b. Edit Action Code "651" . Do not code any further.
F 499R-2/W-2PR, Puerto Rico Wage and Tax Statement    
a. Unnumbered return No a. Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

b. Numbered return No b. Edit Action Code "651" . Do not code any further.
W-2VI, U.S. Virgin Islands Wage and Tax Statement    
a. Unnumbered return No a. Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

b. Numbered return No b. Edit Action Code "651" . Do not code any further.
W-3, Transmittal of Wage and Tax Statement Yes Route to Receipt and Control.
W-4, Employee's Withholding Allowance Certificate Yes Route entire return to the work leader for returning to the taxpayer.
W-4P, Withholding Certificate for Pension or Annuity Payments Yes Route entire return to the work leader for returning to the taxpayer.
W-7/W-7(SP), Application for IRS Individual Taxpayer Identification Number No Edit the received date on Form W-7/W-7(SP). Move to the front of return and route to AUSPC. Send supporting documentation including passport(s). See IRM 3.11.3.9.2.1(6).

Note:

AUSPC only: Route to ITIN Unit.

W-7A, Application for IRS Adoption TIN Yes Edit the received date on Form W-7A. Route Form W-7A and supporting documentation to AUSPC Entity. See IRM 3.11.3.13.2.1.1

Note:

AUSPC only: Route to Entity.

W-9, Request for Taxpayer Identification and Certification No
If attached with correspondence, route to Accounts Management.
If attached with no correspondence, take no action.
56, Notice Concerning Fiduciary Relationship Yes Route to Entity Control. If evidence of authority (copy of will, court order, etc.) is attached, detach and route with notice to Entity Control. Be sure to include type of document(s) detached in the Action Trail.

Note:

If Form 8822/8822B is also present route with Form 56, do not separate the forms.

390, American Samoa Individual Income Tax Return No Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

433 (series), Collection Information Statement/Installment Agreement    
a. Original return Yes a. Edit required Action Trail, amount paid (if any) and total tax due on the form and route to Collection.
b. Photocopy of return No b. Route the entire return to Collection.
482.0/Formulario 482, (Puerto Rico), Planilla De Contribucion Sobre Ingresos de Individuous No Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

656, Offer in Compromise Yes Route to Receipt and Control.

Note:

Route any supporting documentation including Form 433A(OIC) or Form 433B(OIC) with Form 656.

709/A, United States Gift (and Generation-Skipping Transfer) Tax Return, original or signed copy Yes Route to Receipt and Control.
843, Claim for Refund and Request for Abatement Yes Route to Accounts Management.
911, Application for Taxpayer Assistance Order Yes Refer to Work Leader. The Work Leader will follow instructions at IRM 3.11.3.6.1.4.
926, Return by a U.S. Transferor of Property to a Foreign Corporation No Edit Audit Code "H" and continue processing.
949, Notice - Substitute for Return (ASFR) Cover Page No Route entire return to Collection.
982 Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) No Edit the Form 982 Indicator Code "1" on the dotted portion of Schedule 1, Line 11. If Schedule 1 is not attached, dummy Schedule 1 by editing the Indicator Code.
1040-C, U.S. Departing Alien Income Tax Return No Edit CCC "Y" and an action trail.
1040-ES, Estimated Tax for Individuals No If remittance is attached for 1040-ES, refer to manager/work leader.
1040CM, 1040GUAM (International Returns)    
a. Unnumbered return No a. Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

b. Numbered return No b. Edit Action Code "651" . Do not code any further.
Form 1040-NR, Form 1040-NR-EZ, Form 1040-PR, Form 1040-SS (International Returns)    
a. Unnumbered return No a. Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

Exception:

Estate and Trust returns route to KCSPC as NMF.

b. Numbered return No b. Edit Action Code "651" . Do not code any further.
1040-TEL w/ confirmation No Route entire return to CSPC.
1040-V, Payment Voucher    
a. Without remittance No a. Take no action if it does not obstruct T-lines. If it does obstruct T-lines, move voucher to the back of return and continue processing.
b. With remittance   b.
1. Unnumbered return No 1. Hand carry to manager/work leader.
2. Numbered return No 2. Hand carry to manager/work leader.
1040-X or Amended 1040, Form 1040A or Form 1040EZ    
a. No indication of Injured Spouse Claim is present:    
1. The tax period on 1040-X or amended Form 1040, Form 1040A or Form 1040EZ is different than the tax period on the return. Yes 1. Edit the received date on the form, if not already present, and route to 1040-X or amended Form 1040, Form 1040A or Form 1040EZ.

Exception:

Do not separate if Form 1040 supports Form 1040-X (e.g., carryback/carryforward). Move Form 1040-X to the front of the return and edit the received date.

2. The tax period on 1040-X or amended Form 1040, Form 1040A or Form 1040EZ is the same as the tax period on the return. No 2. Move Form 1040-X to the front of the return and edit the received date on the Form 1040-X, if not already present. Route the entire return to 1040-X Function.
b. Indication of Injured Spouse Claim or Form 8379 is attached to the 1040-X or amended Form 1040, Form 1040 A or Form 1040EZ. No b. Refer to IRM 3.11.3.6.2.1.

Note:

When routing an original Form 1040 to Receipt and Control for processing, and the received date on the Form 1040-X is after ≡ ≡ ≡ ≡ ≡, edit the received date stamped on the Form 1040-X to the right of Dependents (see instructions) of the Form 1040 being routed for processing.

1041, U.S. Income Tax Return for Estates and Trusts    
a. No indication that 1041 is for a bankruptcy estate Yes a. Route to Receipt and Control

Note:

Include any related Schedules K-1.

b. A box in the entity portion of 1041 for bankruptcy estate is checked.   b.
1. Unnumbered return No 1. Attach 1041 to the front and route to Receipt and Control.
2. Numbered return   2.
a) Non-remit No a) Edit Action Code "610" .
b) Remit No b) Edit Action Code "611" .
1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons Yes Route for transshipment to OSPC. If attached to a Form 1040, process the Form 1040.
1042-S Copy A, Foreign Person's U.S. Source Income Subject to Withholding or notation of Form 1042-S anywhere on the return No Stop coding. Route the return as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

1042-S, Copy B, C, D, or E, Foreign Person's U.S. Source Income Subject to Withholding

Note:

A letter signed by a "Competent Authority" may be attached in lieu of Form 1042-S

   
a. Unnumbered return No a. Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

b. Numbered return No b. Edit Action Code "651" . Do not code any further.
RRB-1042S, Foreign Person's U.S. Source Income Subject to Withholding    
a. Unnumbered return No a. Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

b. Numbered return No b. Edit Action Code "651" . Do not code any further.
1045, Application for Tentative Refund (original)    
a. Original Form 1040:   a. Research for a TC150.
1. Return posted (TC150 present) No 1. Move the Form 1045 to the front of the return and route the entire package to Accounts Management.
2. Return not posted (no TC150) Yes 2. Take the following actions:
  • Edit the received date on the Form 1045.

  • Photocopy pages 1 and 2, Form 1040, and correct schedules.

  • Forward Form 1045 and copies of Form 1040 to Accounts Management.

  • Process the original Form 1040. Correspond for any missing information including signature.

b. Photocopied Form 1040 which is:   b.
1. Unnumbered No 1. Edit a received date on the Form 1045 and route to Accounts Management with all attached documents including Form 1040. (No Form 1040 is left to process.)
2. Numbered No 2. Edit Action Code "640" , attach Form 4227, and route Form 1045 to Accounts Management.
1045, Application for Tentative Refund (Photocopied or incomplete)    
a. Photocopied Yes a. Route to Accounts Management.
b. Page(s) 3 and/or 4-5 (Schedule A/Schedule B) without page 1 and/or 2 of Form 1045 No b. Take no action.
1065, U.S. Return of Partnership Income    
a. Signed original 1065 or signed photocopy of 1065 Yes a. Route to Receipt and Control.

Note:

Include any related Schedules K-1.

b. Unsigned photocopy of 1065 No b. Take no action.
1096, Annual Summary and Transmittal of U.S. Information Returns Yes Route 1096 and copies A of Forms 1099 to Receipt and Control.
1118, Foreign Tax Credits - Corporations No Support for entry present on Line 6z, Schedule 3 (2019 and later) with Section 962 election.
1120 (series), U.S. Corporation Income Tax Return Yes Route to Receipt and Control.

Note:

Include any related Schedules K-1.

Exception:

Do not detach and do not route if there is an indication the Form 1120 is attached as support for a Form 1040 entry.

1127, Application for Extension of Time for Payment of Tax Due to Undue Hardship Yes
  1. Edit the return Received Date, if present, in the upper right corner of Form 1127. Attach a photocopy of the taxpayer's envelope, if present. See IRM 3.11.3.6.1.4.

    Exception:

    If the return is timely filed, do not edit a received date on Form 1127 and do not attach a photocopy of the taxpayer's envelope.

  2. Route to Receipt and Control.

1128, Application to Adopt, Change, or Retain a Tax Year No Documentation for a Short Period Return. Refer to IRM 3.11.3.6.2.18.
1310, Statement of Person Claiming Refund Due a Deceased Taxpayer No Refer to IRM 3.11.3.10.
2031, Revocation of Exemption from self-employment Tax for Use by Ministers, Members of Religious Orders, and Christian Science Practitioners Yes
Refer to workleader.
Mail to:
Internal Revenue Service
Stop 14M
Attn: Exemption Revocation
P.O. Box 12261
Covington, KY 41012-0261
2106 or Form 2106-EZ, Employee Business Expenses No Edit FPC P when attached. Refer to IRM 3.11.3.15.12.
2119, Sale of Your Home No "X" if attached.
2120, Multiple Support Declaration No Support for Dependent position 2 (2017 and prior only). Edit FPC A when attached. See IRM 3.11.3.13.1.1.
2159, Payroll Deduction Agreement Yes Route to Compliance Services Collection Operations (CSCO).
2210 or Form 2210F, Underpayment of Estimated Tax by Individuals, Estates, and Trusts - Farmers and Fishermen No Refer to line 38 Form 1040. See IRM 3.11.3.14.3.5.
2275, Records Request, Charge and Recharge No Edit the DLN, if present, and a received date on Form 2275. Staple to the back of the return so the form shows at least one inch above the top.
2350, Application for Extension of Time to File U.S. Income Tax Return No Support for line 10, Schedule 3. or line 26, Form 1040.
2439, Notice to Shareholder of Undistributed Long-Term Capital Gains No Support for line 13a, Schedule 3.
2555 and 2555-EZ, Foreign Earned Income    
a. Unnumbered return No a. Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

b. Numbered return No b. Edit Action Code "651" . Do not code any further.

Exception:

AUSPC will edit Action Code "610" .

2848, Power of Attorney and Declaration of Representative Yes Sort Forms 2848 and Forms 8821 by the taxpayer's address on said forms. Attach a completed routing slip and Form 3210 before shipping the batch to the correct site. Enter the volume of Forms 2848 and Forms 8821 on Form 3210. Use the following information to determine which site to ship to.

Memphis (M/S 8423): Alabama (AL), Arkansas (AR), Connecticut (CT), Delaware (DE), Florida (FL), Georgia (GA), Illinois (IL), Indiana (IN), Kentucky (KY), Louisiana (LA), Maine (ME), Maryland (MD), Massachusetts (MA), Michigan (MI), Mississippi (MS), New Hampshire (NH), New Jersey (NJ), New York (NY), North Carolina (NC), Ohio (OH), Pennsylvania (PA), Rhode Island (RI), South Carolina (SC), Tennessee (TN), Vermont (VT), Virginia (VA), Washington, DC (DC), and West Virginia (WV).

Note:

Memphis Address for completion of Form 3210 is:
IRS
Stop 8423
5333 Getwell Road
Memphis, TN 38118

Ogden (M/S 6737): Alaska (AK), Arizona (AZ), California (CA), Colorado (CO), Hawaii (HI), Idaho (ID), Iowa (IA), Kansas (KS), Minnesota (MN), Missouri (MO), Montana (MT), Nebraska (NE), Nevada (NV), New Mexico (NM), North Dakota (ND), Oklahoma (OK), Oregon (OR), South Dakota (SD), Texas (TX), Utah (UT), Washington (WA), Wisconsin (WI), and Wyoming (WY).

Note:

Ogden address for completion of Form 3210 is:
IRS
Stop 6737
1973 Rulon White Blvd.
Ogden, UT 84201

 

Note:

Form 2848 and Form 8821 from US Territories and international addresses are also sorted and sent to Shipping with Form 3210 using the following transshipping address:
PAMC International CAF
Stop 4-H14.123
2970 Market St
Philadelphia, PA 19104-5016

3210, Document Transmittal No Refer to workleader.
3439, Statement of Annual Income (Individual) No Route the entire return to Collection.
3449, Referral Report No Edit the DLN, if present, and a received date on Form 3449. Staple to the back of the return so the form shows at least one inch above the top.
3465, Adjustment Request No Edit the DLN, if present, and a received date on Form 3465. Staple to the back of the return so the form shows at least one inch above the top.
3468, Investment Credit No Support for Form 3800. See IRM 3.11.3.30.
3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts No Edit Audit Code "H" and continue processing.
3520A, Annual Information Return of Foreign Trust with a U.S. Owner No Edit Audit Code "H" and continue processing.
3531 - Pink No Route entire return to ASFR. See IRM 3.11.3.6.2.20.1
3903, Moving Expenses No Support for line 14, Schedule 1. Refer to IRM 3.11.3.15.14.
3911, Taxpayer Statement Regarding Refund    
  Yes If Form 3911 is for a different tax period from the return, detach and route to Refund Inquiry.
  No If Form 3911 is for the same tax period as the return or no tax period indicated, research for a TC150. If posted, route entire return to Refund Inquiry.
3949, Information Report Referral Yes Route to your local function based on the box checked on lines 9-14 on the second page.
3949-A, Information Referral Yes Route to Ogden, Mail Stop 6273.
4029, Application for Exemption from Social Security and Medicare Taxes and Waiver of Benefits    
a. Original form Yes a. Route immediately to the Compliance function at:
Philadelphia Campus 4-G08, 151
2970 Market St.
Philadelphia, PA 19104
b. Photocopy of approved application, Form 4029 No b. IRM 3.11.3.16.4.
4089-B, Notice of Deficiency - Waiver Yes Route using the return envelope mail stop.
4255, Recapture of Investment Credit No Support for line 17z, Schedule 2. Refer to IRM 3.11.3.16.13.
4361, Application for Exemption from self-employment Tax for Use by Ministers, Members of Religious Orders, and Christian Science Practitioners    
a. Original form Yes a. Edit envelope Post Mark Date (or received Date if an envelope is not attached) on Form 4361 and route it, along with any additional copies of Form 4361 to the Compliance Function at:
Internal Revenue Service Center,
Philadelphia, PA 19255-0733
b. Photocopy of approved application, Form 4361 No b. Refer to IRM 3.11.3.16.4.
4506 or 4506T, Request for Copy of Tax Return Yes Route to Receipt and Control.
4506F, A Request for Copy of Fraudulent Tax Return No Route to Accounts Management
4549, Income Tax Examination Changes Yes Route to Examination or to Exam Field Support (EFS) at mail stop M/S 632-2 if shown on return envelope.
4562-FY, Depreciation and Amortization No "X" Form 4562-FY.

Note:

Take no action when Form 4562 is attached.

4563, Exclusion of Income for Bona Fide Residents of American Samoa    
a. Unnumbered return No a. Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

b. Numbered No b. Edit Action Code "651" . Do not code any further.
4810, Request for Prompt Assessment Under Internal Revenue Code Section 6501(d) Yes Route Form 4810 and a copy of the letters testamentary, if present, to Examination.
4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return No Refer to IRM 3.11.3.8.6 and IRM 3.11.3.17.10.
Route loose Forms 4868 to Receipt and Control.
4970, Tax on Accumulation Distribution of Trusts No Support for line 17z, Schedule 2. Refer to IRM 3.11.3.16.13(3).
5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI)    
a. Unnumbered return No a. Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

b. Numbered return No b. Edit Action Code "651" . Do not code any further.
5329 - Loose, Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts No Route loose Form 5329 to Receipt & Control.
5330, Return of Excise Taxes Related to Employee Benefit Plans Yes Route to Receipt and Control.
TY 17 and prior, delete amount from line 63, Form 1040.
5332, Request for Verification of Name and Taxpayer Identification Number Yes Route to Receipt and Control.
5471, Information Return of U.S. Persons with Respect to Certain Foreign Corporations or 5471 Sch G-1 or other supporting schedule No Edit Audit Code "H" and FPC "W" and continue processing.
5472, Information Return of 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business No Edit Audit Code "H" and continue processing.
5495, Request for Discharge from Personal Liability Under Internal Revenue Code Section 6905 No Route to Examination.
5500 (Series), Annual Return/Report of Employee Benefit Plan Yes Route to Receipt and Control requesting them to stamp a received date on Form 5500.
5564, Notice of Deficiency Waiver    
a. From Examination Yes a. Route to Examination.
b. From Collection No b. Route entire return to Collection.
c. From Underreporter Yes c. Route to Underreporter.
5601, Statutory Notice of Deficiency    
a. From Examination Yes a. Route to Examination.
b. From Collection No b. Route entire return to Collection.
c. From Underreporter Yes c. Route to Underreporter.
5884, Work Opportunity Credit No Support for line 6z, Schedule 3. Refer to IRM 3.11.3.17.7.
5884-A, Employee Retention Credit for Employers Affected by Qualified Disasters No Support for Form 3800. See IRM 3.11.3.30.
6458, Certification and Election Form Yes Route to Examination.
6478, Biofuel Producer Credit No Support for line 6z, Schedule 3. Refer IRM 3.11.3.17.7.
6497, Information Return of Nontaxable Energy Grants or Subsidized Energy Financing Yes Route to Planning and Analysis.
6513, Extension of Time to File Not Allowed    
a. With a letter of disagreement or cancelled check Yes a. Route the form and the letter or cancelled check to Accounts Management.
b. By itself No b. Take no action.
6765, Credit for Increasing Research Activities No Support for Form 3800. See IRM 3.11.3.30.
6781, Gains and Losses from Section 1256 Contracts and Straddles No If taxpayer notes Deferred tax from Form 6781 on or near Line 38, Form 1040:
  • Edit CCC "3"

  • Edit Action Code "620"

  • Attach Form 4227 and notate Tax Straddle Investment

7004, Application for Automatic 6-Month Extension of Time to File Certain Business Income Tax, Information, and Other Returns Yes Route to Receipt and Control.
7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals No Support for line 13b, Schedule 3.
7204, Consent to Extend the Time to Assess Tax Related to Contested Foreign Income Taxes-Provisional Foreign Tax Credit Agree No Edit FPC "2" (TY22-TY24)
7205, Energy Efficient Commercial Buildings Deduction No Edit FPC "3" (TY22-TY24)
8009-A, We Need More Information to Process your Amended Return No Route to 1040-X, unless process as original is present.
8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR) No Edit Audit Code "Q" and continue processing.
8176/8176SP, Request for Information About Tax Form    
a. Unnumbered return No a. Route entire return to Collection.
b. Numbered return Yes b. Route to Collection.
8264, Application for Registration of a Tax Shelter Yes Route to OSPC.
8275/8275R, Disclosure Statement/Regulation Disclosure Statement No Edit Audit Code "K" and continue processing.
8283, Noncash Charitable Contributions No Support for line 12, Schedule A. Refer to IRM 3.11.3.18.1.7.
8288, U.S. Withholding Tax Return for Certain Dispositions by Foreign Persons    
a. Original Yes a. Route to OSPC
b. Copy No b. Take no action
8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons or notation of Form 8288-A anywhere on the return    
a. Unnumbered return No a. Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

b. Numbered return No b. Edit Action Code "651" . Do not code any further.
8288-B, Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests Yes Route Form 8288-B to:
Director, OSPC
Accounts Management Operation
1973 N. Rulon White Boulevard
Ogden, UT 84404
8302, Electronic Deposit of Tax Refund of $1 Million or More No Follow instructions at IRM 3.11.3.14.3.1(3).
8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent No TY17 and prior: support for entry present on line 6c, Form 1040. Edit FPC A when attached. See IRM 3.11.3.13.1.1.
8379, Injured Spouse Claim and Allocation No Refer to IRM 3.11.3.6.2.11.
8396, Mortgage Interest Credit No Support for line 6g, Schedule 3. Refer IRM 3.11.3.17.7.
8404, Interest Charge on DISC-Related Deferred Tax Liability Yes Route to Receipt and Control.
8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return No When Form 8453 is on top of return, route entire return to Receipt and Control. Otherwise, take no action.
8586, Low-Income Housing Credit No Support for Form 3800. See IRM 3.11.3.30.
8609, Low-Income Housing Credit Allocation Certification No Support for Form 8586. Refer to IRM 3.11.3.17.7 and IRM 3.11.3.30.
8611, Recapture of Low-Income Housing Credit No Support for line 16, Schedule 2. Refer to IRM 3.11.3.16.13.
8621, Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund No "X" Form 8621.
8689, Allocation of Individual Income Tax to the Virgin Islands or notation of Form 8689 anywhere on the return No Support for Form 1040, line 33 dotted portion or Schedule 3, line 13z or 14. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

8693, Low Income Housing Credit Disposition Bond No Support for line 6z, Schedule 3. Refer to IRM 3.11.3.16.13.
8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts    
Refund or amended return (Form 8697, line 9 of page 1 or line 10 of page 2) Yes Route to Accounts Management.
8801, Credit for Prior Year Minimum Tax - Individuals, Estates and Trusts. No Support for line 6b, Schedule 3. Refer to IRM 3.11.3.17.7.
8804, Annual Return for Partnership Withholding Tax (Section 1446)    
a. Unnumbered return No a. Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

b. Numbered return No b. Edit Action Code "651" . Do not code any further.
8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax or notation of Form 8805 anywhere on the return    
a. Unnumbered return No a. Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

b. Numbered return No b. Edit Action Code "651" . Do not code any further.
8813, Partnership Withholding Tax Payment Voucher (Section 1446)    
a. Unnumbered return No a. Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

b. Numbered return No b. Edit Action Code "651" . Do not code any further.
8815, Exclusion of Interest from Series EE and I U.S. Savings Bonds Issued After 1989 No Support for line 3, Schedule B. Refer to IRM 3.11.3.19.1.2.
8820, Orphan Drug Credit No Support for line Form 3800. See IRM 3.11.3.30.
8821, Tax Information Authorization Yes See Exhibit 3.11.3-1 Attachment Guide for Form 2848.
8822, Change of Address   Edit the new address from Form 8822 to the caption of the tax return unless there is an indication the address is not permanent. Route loose Forms 8822 to Entity Control. Refer to IRM 3.11.3.9.2.3.1.

Note:

If Form 56 is also present route with Form 8822, do not separate the forms.

a. Box 1 or no box is checked No a. Take no further action.
b. Box 2 is checked Yes b. Route to Entity Control.

Note:

If Form 56 is also present route with Form 8822, do not separate the forms.

8824, Like-Kind Exchanges No Edit FPC "L" .
8826, Disabled Access Credit No Support for Form 3800. See IRM 3.11.3.30.
8828, Recapture of Federal Mortgage Subsidy No Support for line 6z, Schedule 3. Refer to IRM 3.11.3.16.13.

Note:

"X" Form 8828.

8829, Expenses for Business Use of Your Home No Support for line 30, Schedule C. Refer to IRM 3.11.3.20.9.3.
8830, Enhanced Oil Recovery Credit No Support for Form 3800. See IRM 3.11.3.30.
8832, Entity Classification Election Yes Route to OSPC.
8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)    
a. Unnumbered return No a. Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

b. Numbered return No b. Edit Action Code "651" . Do not code any further.
8835, Renewable Electricity and Refined Coal Production Credit No Support for Form 3800. See IRM 3.11.3.30.
8836, Qualifying Children Residency Statement (for earned income credit) Yes Route to Receipt and Control for transshipment KCSPC
8844, Empowerment Zone and Renewal Community Employment Credit No Support for Form 3800. See IRM 3.11.3.30.
8845, Indian Employment Credit No Support for Form 3800. See IRM 3.11.3.30.
8849, Claim for Refund of Excise Taxes No Edit CCC "Y" and an Action Trail.
8854, Initial and Annual Expatriation Information Statement    
a. Unnumbered return No a. Stop coding. Immediately forward returns containing Form 8854 in their entirety to AUSPC at:
Internal Revenue Service
Mail Stop 4301 AUSC
3651 S IH 35
Austin, TX 78741

Note:

AUSPC only - Route to Stop 4301.

b. Numbered return No b. Edit Action Code "651" . Do not code any further.
8857, Request for Innocent Spouse Relief Yes
  • Expedite on a daily basis Form 8857 and any supporting documentation to: Internal Revenue Service
    CSO (Campus Support Operation)
    Stop #840F
    7940 Kentucky Drive
    Florence, KY 41042

    Note:

    Form 8857 must be received by CSPC within 10 days of receipt by IRS.

  • Edit CCC "3" and an Action Trail on the return. Also edit an Action Trail on Form 8857.

  • Refer to IRM 3.11.3.6.2.12.

8859, District of Columbia First-Time Homebuyer Credit No Support for line 6h, Schedule 3.
8860, Qualified Zone Academy Bond Credit No Support for line 6z, Schedule 3.
8861, Welfare-to-Work Credit No Support for prior year Form 3800. See IRM 3.11.3.30.2.
8862/8862(SP), Information to Claim Certain Credits After Disallowance No Edit Audit Codes as listed below and continue processing.
  • "U" when Part II, EIC portion of the form is completed.

  • "2" when Part III, CTC/RCTC/ACTC/ODC portion of the form is completed, (TY17 and later only).

  • "3" when Part IV, AOTC portion of the form is completed, (TY17 and later only).

Note:

"X" this form.

8864, Biodiesel Fuels Credit No Support for Form 3800. See IRM 3.11.3.30.
8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships No Edit FPC "X" when Form 8865 is attached to the return (Form 1040 or 1040-NR).
8874, New Markets Credit No Support for Form 3800. See IRM 3.11.3.30.
8879, IRS e-file Signature Authorization    
a. Unnumbered return with Form 14039/ Form 14039 (SP) attached, SPC "B" present, or indication of ID theft No a. Do not research, continue processing the return.
b. Unnumbered return No b. Research to determine if TC150 has posted, unless indication of rejected e-file or return not received.
  1. If no TC150 has posted, "X" Form 8879 and process the return.

  2. If TC150 has posted, send return to 1040-X Function.

c. Numbered return No c. Process return as usual.
8881, Credit for Small Employer Pension Plan Startup Costs No Support for Form 3800. See IRM 3.11.3.30.
8882, Credit for Employer-Provided Childcare Facilities and Services No Support for Form 3800. See IRM 3.11.3.30.
8885, Health Coverage Tax Credit No Support for line 13c, Schedule 3 (TY21 and prior only).
8886, Reportable Transaction Disclosure Statement No Edit FPC "J" and continue processing.
8896, Low Sulfur Diesel Fuel Production Credit No Support for Form 3800. See IRM 3.11.3.30.
8898 Statement for Individuals who begin or end bona fide residence in a US Possession.    
a. Unnumbered return No a. Stop coding. Immediately forward returns containing Form 8898 in their entirety to AUSPC at:
Internal Revenue Service
Mail Stop 4301 AUSC
3651 S IH 35
Austin, TX 78741

Note:

AUSPC only - Route to Stop 4301.

b. Numbered return No b. Stop Coding. Edit Action Code "651" .
8904, Oil and Gas Production from Marginal Wells No Support for Form 3800. See IRM 3.11.3.30.
8906, Distilled Spirits Credit No Support for Form 3800. See IRM 3.11.3.30.
8907, Non-conventional Source Fuel Credit No Support for Form 3800. See IRM 3.11.3.30.
8908, New Energy Efficient Home Credit No Support for Form 3800. See IRM 3.11.3.30.
8909, Energy Efficient Appliance Credit No Support for Form 3800. See IRM 3.11.3.30.
8911, Alternative Fuel Vehicle Refueling Credit No Support for Form 3800. Refer to IRM 3.11.3.30.
8913, Credit For Federal Telephone Excise Tax Paid No Delete "X" Form 8913.
8917, Tuition and Fees No Delete "X" Form 8917.
8931, Agricultural Chemicals Security Credit No Support for Form 3800. See IRM 3.11.3.30.
8932, Credit for Employer Differential Wage Payments No Support for Form 3800. See IRM 3.11.3.30.
8933, Carbon Dioxide Sequestration No Support for Form 3800. See IRM 3.11.3.30.
8938, Statement of Foreign Financial Assets No Follow instructions at IRM 3.11.3.6.2.10.
8939, Allocation of Increase in Basis for Property Received from a Decedent Yes Edit FPC "Q" and route to Receipt & Control for transshipment to CSPC.

Note:

Take no action when Form 8939 is not signed.

8948 Preparer Explanation for Not Filing Electronically No Explanation filed by paid preparer with Form 1040, Form 1040A or Form 1040EZ explaining why return not filed electronically. See IRM 3.11.3.14.8.
8965, Health Coverage Exemptions No Delete when attached to a return.
8990, Limitation on Business Interest Expense for Section 163(J) No Edit FPC "R" when Form 8990 is attached to return (Form 1040 or 1040-NR).
8992, US Stockholder Calculation Global Intangible Low-Taxed Income (GILTI) No Edit FPC "R" when Form 8992 is attached to return(Form 1040 or 1040-NR).
8993, Deduction for Foreign-Derived Intangible income and Global Intangible Low-Taxed Income No Edit FPC "R" when Form 8993 is attached to return(Form 1040 or 1040-NR).
8994, Employer Credit for Paid Family and Medical Leave No Edit FPC "R" when Form 8994 is attached to return (Form 1040 or 1040-NR).
8995-A Schedule A, Specified Service Trades or Businesses No Edit FPC "H" when Form 8995-A Schedule A is attached to return (Form 1040 or 1040-NR) and delete the Schedule.
8995-A Schedule B, Aggregation of Business Operations No Edit FPC "H" when Form 8995-A Schedule B is attached to return (Form 1040 or 1040-NR) and delete the Schedule.
8995-A Schedule D, Special Rules for Patrons of Agricultural or Horticultural Cooperatives No Edit FPC "H" when Form 8995-A Schedule D is attached to return (Form 1040 or 1040-NR) and delete the Schedule.
9282, Electronic Payment Voucher No See 1040-V.
9325, Acknowledgement and General Information for Taxpayer Who Files Electronically    
a. Unnumbered return with Form 14039/ Form 14039 (SP) attached, SPC "B" present, or an indication of ID theft No a. Do not research, continue processing
b. Unnumbered Return No b. Research if information is present on line 1, with or without the line 1 box marked, to determine if TC150 has posted, unless indication of rejected e-file or return not received.
1) If no TC150 has posted "X" Form 9325 and process return.
2) If TC150 has posted, send to Form 1040-X Function.
c. Numbered return No c. Process return as usual.
9358, Information About Your Tax Return    
a. Filed by Individual Income Taxpayers    
1. Unnumbered return No 1. Route entire return to Collection.
2. Numbered return Yes 2. Route Form 9358 to Collection
b. Filed by Business Taxpayers Yes b. Route to Collection.
9465, Installment Agreement Request Yes If available, perfect the Amount Paid and Total Tax Due entries on Form 9465 before routing to Collection.
  • AUSPC route to Stop 5501

  • KCSPC route to Stop P4, Stop 5000

  • OSPC route to Stop 5500

12412, Operations Assistance Request (OAR) No Refer to IRM 3.11.3.73.2(5).
12518, (ASFR Routing Form) No Route entire return to Collection.
13133, Expedite Processing Cycle No Refer to IRM 3.11.3.6.1.5.
13441-A, Health Coverage Tax Credit (HCTC) Monthly Registration and Update Yes Route to AUSPC, Stop: 6098 - Entity

Exception:

Do not detach if Form 8885 is present.

13844, Application for Reduced User Fee for Installment Agreements Yes Route to KCSPC ACS Support Stop P-4 5050.
14039/14039 (SP), Identity Theft Affidavit    
a. For primary or secondary taxpayer No a. Edit FPC "8" when Form 14039 is attached or edit FPC "9" when Form 14039 (SP) is attached.

Note:

This instruction also applies to the presence of police reports or other white mail that purports to notify the Service of identity theft. Do not research for TC 150 when there is an indication of ID Theft. Copies of Driver’s License, Social Security Cards, or Passports by themselves are not an indication of ID Theft. Do not edit FPC 8 or 9 without other indicators or statements such as police reports.

b. Child or dependent of the taxpayer Yes b. Refer entire return to workleader.
If a taxpayer cites IDT and/or attaches Form 14039, and/or police reports or other supporting documentation and claims that someone has claimed their child/dependent on another tax return. The workleader will photocopy Form 14039, letter or statement. Attach all photocopied items (Form 14039 and documentation) to the return. Send the original Form 14039, letter, and documentation to ICT (Accounts Management).

Caution:

Do not edit FPC “8” or FPC “9” for a dependent filing Form 14039 or Form 14039 (SP).

Note:

Route loose Form 14039 or Form 14039 (SP) to ICT (Accounts Management).

14095, The Health Coverage Tax Credit (HCTC) Reimbursement Request Form Yes Route to AUSPC, Stop: 6098 - Entity

Exception:

Do not detach if Form 8885 is present.

14157, Return Preparer Complaint Yes Route to Receipt and Control
14157-A, Tax Return Preparer Fraud or Misconduct Affidavit No a. If attached to CP notice or IRS letter, route the entire return to the function that originated the notice or letter.
b. If loose form or with other correspondence, route the entire return to ICT.
14653, Streamlined Foreign Offshore No Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

14654, Streamlined Domestic Offshore No Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

15103, Form 1040 Return Delinquency Yes Route to AUSPC CSCO (Stop 5501) or Fresno Campus Support, CSCO (Stop 81105) Include in the action trail, tax form, tax period, tax id number and balance due if available.

Exception:

If using CP 59 or Form 15103 (see IRM 3.11.3.14.5(8)h)) as support for a valid signature(s) on the return do NOT detach, continue processing the return.

15227, Identity Protection and Victim Assistance Request Yes Route to ICT
ACA
Petition
Yes Send to:
IRS
Room 3244
1111 Constitution Avenue, NW
Washington, DC 20224
Acknowledgement of documents/payments received    
a. Self-addressed stamped envelope attached a. Yes a. Route to Receipt and Control
b. Self-addressed stamped envelope not attached b. No b. Continue processing return
Amended Joint FMA/MFS No Edit Action Code "460" . Prepare Form 4227 with instructions to route to Examination and leave the return in the batch.
Automated Substitute for Return (ASFR) Collection Letters2320-2331, 2465-2469 and 2564 No Route the entire return to Collection.
KCSPC: route to Fresno or Austin
Disaster Cases No Refer to IRM 3.11.3.6.1.3.
EIC Fraud Informant Correspondence No Take no action. See: Statement or notation that taxpayer(s) SSNs or dependents are being claimed on another return.
Hardship Cases. Taxpayer indicates that they will suffer severe consequences due to their tax situation. No Refer to your Work Leader. Work Leader will refer to IRM 3.11.3.6.1.4.
Health Insurance Marketplace- Application for Exemption from the Shared Responsibility Payment for Individuals who Experience Hardships Yes Route to Receipt and Control.
Identity Theft Documentation. This includes any of the following:
  • copies of police reports indicating identity theft

  • Form 14039 or Form 14039 (SP), Identity Theft Affidavit

  • Copies of Social Security cards, passports, driver's licenses, etc.

  • Notation of "IDT"

  • Notation of identity theft on Form 8948 or other attachment

No

Note:

See Exhibit 3.11.3-1, Form 14039, Identity theft Affidavit

Indication of Excluded Foreign Income    
a. Only indication is an attached Form 1116 with or without a receipt for foreign taxes paid No a. Take no action. Refer to IRM 3.11.3.27.1(6).
b. Otherwise:   b.
1. Unnumbered return No 1. Stop coding. Route as international for transshipment to AUSPC.

Note:

AUSPC only - Rebatch as international.

2. Numbered return No 2. Edit Action Code "651" . Do not code any further.
Innocent Spouse Relief request Yes Edit CCC "3" and an Action trail on the return. Also edit an Action Trail on the routed document. Refer to IRM 3.11.3.6.2.12. Route the correspondence or photocopied notation and any supporting documentation to CSPC.
IRC 965 Transition Tax Statement or similar statement/worksheet No Edit RPC "F" . For TY17, also edit CCC "P" and Action Code "300" .

Note:

For TY18 and later, do not edit RPC "F" when Form 965-A is attached without an entry on line 20, Schedule 2 unless an amount is present elsewhere (line 8z, Schedule 1 or line 13z, Schedule 3).

Loose Transcribable Forms or Schedules NA Route to Accounts Management

Exception:

Do not route loose Schedule H or Form 5329 to AM.

Loose Passports NA Route to ITIN
Original Personal Documents -- SSN card, marriage license    
a. Original Yes a. Route the document(s) with taxpayer's complete address to your work leader. Work leader will complete Form 14219, Return of Documentation to the Taxpayer.
Reminder: Keep all documents attached with Form W-7/W-7(SP) when routing to AUSPC.

Exception:

Do not detach death certificates on decedent returns.

b. Photocopy No b. Take no action.
POW/MIA No Route entire return to Accounts Management.
Predetermined Negligence Penalty    
a. Unnumbered return No a. Edit CCCs "3" and "Y" and an Action trail and continue processing.
b. Numbered return No b.
  • Edit CCC "3"

  • Prepare Form 3465. Edit the DLN, TC350, and predetermined negligence penalty amount.

  • Route Form 3465 to Accounts Management.

  • Provide a list of DLNs to Output Review.

  • Indicate "Associated with notice and forward to Accounts Management - Predetermined Negligence Penalty"

.
Prisoner Correspondence Yes Route to Accounts Management. If attached to an original return, detach before routing. See IRM 3.11.3.3.6(4).
Refund Inquiry    
  Yes If inquiry is for a different tax period from the return, detach and route to Refund Inquiry.
  No If inquiry is for the same tax period as the return, research for a TC150. If posted, route entire return to Refund Inquiry.
Remittance No Hand carry to your manager/workleader.
Request for Assistance in securing Forms W-2 from employer, etc. Yes Route to Accounts Management.
Request for forms, adjustments, information Yes Route to Accounts Management.
Request for Manual Refund No Edit Action Code "341" and continue processing.
Request for payment plan or Statement Taxpayer Unable to Pay Tax Yes Edit amount paid (if any), total of tax due, and route the statement to Collection.

Note:

At SPC option, a photocopy of pages 1 and 2 of the tax return may be routed to Collection instead of making the above entries. Refer to Processing Reference Guide for information on hardship returns.

Request for payment by credit card No Refer to IRM 3.11.3.3.6(7).
Request for refund less than $1 No Edit Action Code "341" and continue processing.
Soldier & Sailor Relief Act Statement Yes Edit CCC "M" and route to Accounts Management.
State and/or Local tax returns (original or copy with taxpayer's original signature) Yes Route to Receipt and Control.
  No If corresponding for missing signature on Form 3531, also ask the taxpayer to detach their state/local return regardless of whether or not it is signed. Use Box 29 of Form 3531.
Statement or notation that taxpayer is an "Injured Spouse" No Refer to IRM 3.11.3.6.2.11.
Statement or notation that taxpayer(s) SSNs or dependents are being claimed on another return No Take no action.
Statement that taxpayer wants refund applied to Public Debt Yes Route to Accounts Management.
Statement that taxpayer is not liable for ES penalty No Refer to IRM 3.11.3.14.3.5 and Exhibit 3.11.3-9.
Statement that taxpayer is not liable for late filing or late payment penalties No Refer to IRM 3.11.3.8.7 and Exhibit 3.11.3-9.
Another tax return not listed in this guide (Form 706, Form 941, Prior Year 1040, etc.), original or signed copy Yes Route to Receipt and Control.

Action Codes

Action CodeExhibit

Only one Action Code can be assigned to a document and must be edited in the following priority: 300, 310, 4XX, 6XX, 2XX, 3XX.

Continue perfecting returns assigned an action code unless otherwise specified.

Correspondence

Code Explanation
211 First correspondence
212 Second correspondence
215 International correspondence
224 ACA correspondence
 

In-House Research

Code Explanation
300 IRC 965
310 Statute control
320 Entity control
 

EXAM/CI/RIVO Review

Code Explanation
331 Frivolous filer review
332 Criminal Investigation
333 Prompt audit
334 Joint committee return
335 Frivolous case
336 RIVO review
337 Other CI
370 Examination
 

Accounting

Code Explanation
341 Manual refund
342 Verification of credits
343 Other accounting
 

Entity Research

Code Explanation
351 TIN research
352 Name research
353 Address research
354 Filing requirement research
355 Other MFTRA research
360 Other in-house research
 

Management Suspense

Code Explanation
420 Management suspense – A
430 Management suspense – B
440 Management suspense – C
450 Management suspense – D
460 Management suspense – E
480 Early-filed suspense
 

Missing Document

Code Explanation
510 Missing document
 

Rejects

Code Explanation
610 Renumber non-remittance
611 Renumber with remittance
620 Non-Master File (NMF)/Non-ADP
640 Void document
651 International document
(transship to AUSPC)

Audit Codes

Audit CodeExhibit
Code Explanation
B
  • No reply to correspondence for missing Schedule C, D, E, F or Form 4797 with a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

  • An amount of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on line 30 of Schedule C and Form 8829 is not attached.

C Form 8283, Part I and any of the following are true:
  • Checkbox 2b, Qualified Conservation Contribution is marked or

  • Checkbox 2b1, Certified Historic Structures is marked or

  • Line 3, Column h, Qualified Conservation Contributions Relevant Basis contains values other than zero.

D High income non-filer return identified by Collection.
H
  1. A form in the list below is present:

    • Form 926, Foreign Trust

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

    • Form 3520-A, Annual Return of Foreign Trust With a U.S. Owner

    • Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations

    • Form 5472, Information Return of a Foreign Owned Corporation


    OR

  2. Schedule B, line 8, box marked "yes"

I Binding contract not attached to claim for First Time Homebuyer Credit
K Disclosure statement, Refund scheme, preparer Identified.
L Joint committee case: Section 6501 (d), request for prompt audit assessment identified by Exam.
Q Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR), is attached
R Return meets criteria for Frivolous Filing. Edited or stamped by Compliance.
U Taxpayer has attached Form 8862, Information to Claim Certain Credits After Disallowance, with the Earned Income Credit portion of the form completed for TY17 and later or Form 8862 is attached for TY16 and prior.
Z Form 8919, Uncollected Social Security and Medicare Tax on Wages, is filed with return and is incomplete.
2 Form 8862, Information to Claim Certain Credits After Disallowance, is filed with the return and the Child Tax Credit/Additional Child Tax Credit/Credit for Other Dependents portion of the form is completed. Valid TY17 and later.
3 Form 8862, Information to Claim Certain Credits After Disallowance, is filed with the return and the American Opportunity Credit portion of the form is completed. Valid TY17 and later.

Computer Condition Codes (CCC)

CCCExhibit

When CCC "3" is edited, it must be edited first.

Edit all other codes in sequence found.

Any time CCC "Y" is edited on the return leave an Action Trail indicating the reason for the "Y" code.

Code Explanation
A Both Primary and Secondary taxpayers are deceased during the tax period of the return.
B Return appears to be Non-Compute return but taxpayer computed tax liability to zero. Suppresses the generation of CP51, which informs taxpayer IRS computed their tax.
D UN Operation, Haiti, Former Yugoslavia (TY94/93 only), or Somalia (TY93/92 only) return.

Note:

Do not enter CCC M if the return is a Combat Zone Return (IRM 3.11.3.6.1.1.1)

E Deletes filing requirements for taxpayers who are not deceased.
F Primary taxpayer is deceased during the tax period of the return.
G Form 1040-X which amends Presidential Election Campaign Fund (PECF) selection.
H The box on Form 1040, line 6c is checked indicating a Lump Sum Election is present.
J Filing Status Code 2 or 3 with Secondary SSN missing and Amish/Mennonite or Form 4029 is notated.
K Taxpayer in combat zone (Operation Enduring Freedom (Afghanistan) Combat Zone/Operation Iraqi Freedom Combat Zone).
L Refund on an overpaid decedent return is to be issued with the First Name and Second Name lines (e.g., executor) reversed on refund check.
M Reasonable cause established by taxpayer for not paying the tax balance due.
N Generates a 60 day extension of time to file for taxpayers who are out of the country on the due date of the return.
O Indicates a manual refund was issued before the return was processed; also freezes amount from refunding when return posts.
P Reasonable cause established by taxpayer to suppress computer generated Estimated Tax Underpayment Penalty.
Q Qualifying Non-Dependent’s name is listed in filing status section of return.
R Reasonable cause for delinquent filing; suppresses the delinquency penalty.
U Suppresses credit interest on a No Reply return.
W Refund on overpaid return is to be issued to the Second Name Line (e.g., surviving spouse) of a deceased person or to the stateside spouse of a person serving overseas. Suppresses the first name line on the refund check.
Y Forces the return to ERS for manual review.
Z Restricts the computation of interest and failure to pay penalty.
1 Generates transaction and action code combinations to generate systemic freeze conditions on selected IMF returns (edited by RICS for Revenue Protection).
3 Freezes the release of a refund on the account at Master File
4 Edited by Exam on original return secured after a Substitute for Return (SFR) has been filed in place of return
7 Identifies the account as having had reasonable cause denied.
8 Refund return and only one Form W-2, that is a substitute, altered, handwritten or typed Form W-2 is attached.
9 Secondary taxpayer is deceased during the tax period of the return.

Form Processing Code (FPC)

FPCExhibit
Code Explanation
A TY2017 and prior, Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents, Form 2120, Multiple Support Declaration, or a copy of a divorce decree stating exemption entitlement is attached.
D TY2016 and later, a Federally-declared disaster loss is claimed on Schedule A and Form 4684.
G Form 8938, Statement of Foreign Financial Assets is attached.
H Form 8995-A Schedule A, Schedule B, Schedule C, or Schedule D is attached.
J Form 8886, Reportable Transaction Disclosure Statement is attached to the return.
L Form 8824, Like-Kind Exchanges, is filed with the return.
P Form 2106, Employee Business Expenses, is attached.
Q Form 8939, Allocation of Increase in Basis for Property Acquired from a Decedent, is attached.
R One or more of the Forms 8990, 8992, 8993, or 8994 is attached.
W Form 5471 or Form 5471 Schedule G-1, or another schedule supporting Form 5471 is attached.
X Form 8865 or a schedule supporting Form 8865 is attached to the tax return (Form 1040 or 1040-NR).
2 Form 7204 is attached (TY22-TY24).
3 Form 7205 is attached (TY22-TY24).
5 Form 6251 is attached.
8 Taxpayer identified themselves as being an identity theft victim and attached Form 14039, Identity Theft Affidavit, or a police report.
9 Taxpayer attached a Spanish language version of the Identify Theft Affidavit (Form 14039SP) to any type of form within the 1040 family, and therefore a Spanish version of the CP01S notice will be issued.

Return Processing Codes (RPC)

RPCExhibit

Edit all codes in sequence found.

Code Explanation
B Taxpayer indicates does not want or qualify for EIC. Forces the computer to compute EIC to zero.
C "Community Property" taxpayer who does not enter any income items, but claims the benefit of Community Property and reports a prorated share of community income as AGI. The Community Property states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin
D Form 8962 Premium Tax Credit is attached with QSEHRA noted on the top of the form.
F Taxpayer has included IRC Section 965 claims and/or payments on the return. (TY17 and later.)
G Forces the computer to bypass the check for a withholding amount error.
H Other Contributions amount equal to or greater than $500 is present on Schedule A and Form 8283.
K Indicates the return has been cleared by Statute Control. Valid on prior year returns only.
L Tax return is blank other than Entity or contains all zeros or insignificant entries.
M Unemployment Compensation box checked on Form 8962 for TY2021.
N Identifies non-employee compensation for Examination to assess SE tax liability.
S Taxpayer is not liable for self-employment tax (includes ministers who have filed a waiver and Statutory Employees).
T Forces the computer to accept Capital Gains distribution without an attached Schedule D.
U Form 8949 is attached with Z or Y code present in Column (f) of form. (Taxpayer indicates deferral on the gain from the sale of an asset by investing in a Qualified Opportunity Zone Fund on Form 8949, Sales and Other Dispositions of Capital Assets.)
V Serves as an indicator for statistical purposes to identify computer-generated, paper filed returns.
X Indicates LB&I screening of international returns for Revenue Protection.
Y Identifies returns dummied to process a "loose" Schedule H.
3 Indicates Form 5329 is not required.
4 Other Contribution amount equal to or greater than $500,000 is present on Schedule A, and appraisal for donated property is present on Form 8283.
5 TY22 return with Deemed Payment Election (DPE) under IRA.

Special Processing Codes (SPC)

SPCExhibit
Code Explanation
A Non-Passive Activity Loss (NPA) noted by taxpayer on Schedule E, line 26.
B Edited by the RIVO, ITVA, CSCO AFSR, or AM Function. If a SPC "B" is present, continue processing.
D Form 2441 indicated Tax Exempt Child Care Provider or LAFCP or Due Diligence Statement is attached or indication is present in lieu of the Provider’s TIN.
E There is an entry present on Form 1040, line 1b or taxpayer noted "HSH" indicating wages reported includes household employee wages received.
J Taxpayer indicates wages earned in a penal institution.
K Form 8863, Education Credits, is present with the box checked on line 7 for ineligibility of the refundable American Opportunity Credit.
L More than two dependents are claimed on Form 2441 and/or attachments.
M RICS ONLY. Do not remove.
N Claim of Right (IRC 1341) cleared by Exam.
V Validation required for Excess Social Security Tax Withholding (Revenue Protection)
Y Computer generated return prepared using Free File Software, "FFF" is present in the bottom margin of the return.
Z Form 5405, First-Time Homebuyer Credit, line 2 box checked. The Primary taxpayer does not have to repay the credit.
4 Alimony Received and/or Alimony Paid date is after 12-31-2018.
7 Form 5405, First-Time Homebuyer Credit, line 2 box checked. The secondary taxpayer does not have to repay the credit.

Unallowable Codes

Unallowable CodeExhibit

The Unallowable Codes in this exhibit are for informational purposes only. Do not edit an unallowable code unless specifically told to do so in line by line instructions.

Edit all codes in sequence found.

Only three (3) codes may be used. If more than 3 unallowables are identified, edit Unallowable Code "98" for the third code with no amount and explain the additional codes and amounts in the memo portion of Form 3471.

Do not code Unallowables under ≡ ≡ ≡ ≡ ≡ in income, unless specifically instructed to do so.

Code Explanation
33 Personal expenses for medical care. Personal or living expenses (except for transportation to obtain medical care) incidental to medical treatment, such as meals, lodging in excess of $50 per day (per individual), health club dues, diet foods, funeral expenses and maternity clothes.

Note:

Includes Medical/Dental Expenses (not limited to the amount greater than 7.5% of AGI)

34 Federal taxes. Income, Social Security (FICA) and Excise taxes on automobiles, telephone, air transportation, custom and import duties.

Note:

There is a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ associated with this Unallowable Code.

35 Utility taxes. Sewer, water, phone, garbage, gas, electric, etc.

Exception:

This does not include sales taxes paid on certain utilities in Minnesota and Wisconsin.

36 State and local taxes. Hotel, meal, air fare, inheritance, stamp, poll, mortgage transfer tax, etc.
37 Automobile licenses and tags. Personal automobile registration, tag and license taxes or fees

Exception:

Residents of Alabama, Arizona, California, Colorado, Connecticut, Georgia, Indiana, Iowa, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, Oklahoma, South Carolina, Virginia, Washington, and Wyoming.

38 Child Support. Expense for support of a child or individual (not to be confused with child care).
40 Educational expenses. Educational and related expenses for someone other than the taxpayer or spouse (This includes tuition, books, transportation, lodging, etc. for individuals other than taxpayer).
41 Personal interest paid.
42 Contributions. The monetary value of the taxpayer's time or labor, contributions to individuals, or non-qualifying organization such as foreign charities (except for Canadian charities) or lobbying groups.
43 Auto expenses for trade or business. Any amount claimed for trade or business transportation in excess of 57.5 cents per mile.
45 Sale of personal residence. Expenses for sale or purchase of personal residence (closing expenses, settlement fees, legal fees, Realtor commissions, etc.) unless those items are specifically claimed as part of moving expenses.
46 Personal insurance. Premiums paid for life, automobile, home, liability, etc., not claimed as an employee business expense.
61 Form 8859, Carryforward of the District of Columbia First-Time Homebuyer Credit, claim for $1000 or more.
77 Disabled Access Credit. Taxpayer filed Form 1040 with Form 8826 attached. No Schedule C, Schedule E, or Schedule F present and no entry on line 24z, Schedule 1 (line 21, Form 1040, TY17 and prior).

Note:

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

79 Alternative Motor Vehicle Credit/Electric Motor Vehicle Credit. Taxpayer claimed the same vehicle on more than one of Form 8834, Form 8936 and/or Form 8910.
84 First-Time Homebuyer Credit Recapture - Our records show the taxpayer could not have transferred the home as part of a divorce settlement.
89 Health Coverage Tax Credit (HCTC) - 1) The taxpayer is eligible for the Health Coverage Tax Credit and claimed the HCTC and Premium Tax Credit (PTC) for the same month, or 2) The taxpayer-recipient is 67 years of age or older and ineligible for HCTC.
92 Loss of personal residence or property - Schedule D or Schedule A reporting a loss ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ from the sale of personal asset (e.g., furniture, jewelry, automobiles, personal residence, etc.), not including assets designated as "rental" or "inheritance" .
98 More than three unallowables. Edit unallowable code "98" for the third unallowable with no dollar amount.

Examples of Reasonable Cause

Reasonable CauseExhibit

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
 
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Note:

Copies of police and insurance reports provide such evidence.

4. For TY18, Form 2210 attached and, Box A in Part II is marked and 80% or 85% Waiver is noted next to Box A or in the Box A area.

State Codes and Zip Codes Perfection Chart (State Order)

State Codes and Zip Codes Perfection ChartAddressZIP Code
State Code State Name ZIP Code State Code State Name ZIP Code
AA America-Atlantic 34001   MS Mississippi 38601
AE America-Europe 09001   MO Missouri 63001
AP America-Pacific 96201   MT Montana 59001
AL Alabama 35001   NE Nebraska 68001
AK Alaska 99501   NV Nevada 88901
AZ Arizona 85001   NH New Hampshire 03001
AR Arkansas 71601   NJ New Jersey 07001
CA California 90001   NM New Mexico 87001
CO Colorado 80001   NY New York 00401
CT Connecticut 06001   NC North Carolina 27001
DC District of Columbia 20001   ND North Dakota 58001
DE Delaware 19701   OH Ohio 43001
FL Florida 32001   OK Oklahoma 73001
GA Georgia 30001   OR Oregon 97001
HI Hawaii 96701   PA Pennsylvania 15001
ID Idaho 83201   RI Rhode Island 02801
IL Illinois 60001   SC South Carolina 29001
IN Indiana 46001   SD South Dakota 57001
IA Iowa 50001   TN Tennessee 37001
KS Kansas 66001   TX Texas 75001
KY Kentucky 40001   UT Utah 84001
LA Louisiana 70001   VT Vermont 05001
ME Maine 03901   VA Virginia 20101
MD Maryland 20601   WA Washington 98001
MA Massachusetts 01001   WV West Virginia 24701
MI Michigan 48001   WI Wisconsin 53001
MN Minnesota 55001   WY Wyoming 82001

Self-Employment Income

Self-Employment IncomeNot Self-Employment

Self-Employment Income (List is not all inclusive)

A - D D - M M - S S - Z
Accountant Disc Jockey Model Stenographer
Actor/Actress Draftsman Motion Picture Worker Steward
Administrator Dressmaker Mover Stock Clerk
Agent Driver Musician Surgeon
Airplane Pilot Economist Music Teacher Surgical Worker
Analyst Electrician Navigator Surveyor
Appraiser Elevator Operator Newspaper Carrier (No Indication of Minor Child) Tailor
Architect Engineer (any kind) Nurse Taxicab Driver
Artist/Art Worker Engraver Nursemaid Teacher
Athlete Entertainer Nursery Worker Teamster
Automatic Data Processing Equipment Operator Farmer/Farm Worker Official (sports) Telegraph Operator
Baby-sitter Fireperson Optical Worker Telephone Operator
Baggage Porter Football Player Optician/Optometrist Telephone Repairman/Worker
Bailiff Fortune Teller Painter Teller
Baker Freelance Writer Palmist Textile Worker
Bank Teller Funeral Director Parking Lot Attendant Therapist
Barber Garbage Collector Pharmacist Timekeeper
Bartender Gardener Photographer Trainer
Baseball Player Gas Station Worker Pilot Transcriber
Bell Person Geologist Plumber Translator
Billing Clerk Golfer Policeman Truck Driver
Bookbinder/Publisher Guard Policewoman Tutor
Bowler Guide Pollster Typist
Broker Hairdresser Porter Upholsterer
Brick Mason/Setter Host/Hostess Printer Usher
Building Contractor Hotel Worker Proofreader Veterinarian
Bus Driver Housekeeper Protective Agency Waiter
Cabinet Maker Inspector Publisher Waitress
Caddie Instructor Radio DJ Washer
Cafeteria Worker Interpreter Railroad Conductor Watchman
Civil Engineer Investigator Railroad Worker Welder
Cleaner Janitor Real Estate Worker Wholesale Trader
Clerk (any kind) Jockey Receptionist Window Washer
Commercial Artist Judge Recreation Worker Writer
Commissions Keypunch Operator Registered Nurse Yardman
Computer Operator Laborer Repair Person  
Computer Specialist Launderer Reporter  
Conductor Lawn Care Retail Trader  
Construction Worker Lawyer Roofer  
Consultant Lay Midwife Sales Clerk  
Cook/Chef Librarian Scientist (any kind)  
Cutter Library Assistant Sculptor Secretary  
Dancer Longshore Worker Seamstress  
Decorator/Designer Mail Carrier/Clerk Sheriff  
Dental Assistant Mechanic Singer  
Dentist Messenger Social Worker  
Detective Metal Worker Statistical Clerk  
Director’s Fee Miner Statistician  

Not Self Employment

Not Self-Employment Income (List is not all inclusive)

A - I J- W
Alimony Jury Duty
Award Newspaper Route (Minor Child Indicated)
Bingo Pension
Bonus Prize
Child Support Rebate
ESOP Reimbursement
Estate Scholarship
Executive Settlement
Fellowship Tribe/Tribal
Foster Care Trust
Gambling Wages from Parent
Grant Wages from Spouse
Incentive  

Frivolous Filer/Non-Filer Review Box Criteria and Definitions

Frivolous Filer/Non-filer

The Frivolous Return Program (FRP), through administration of the Internal Revenue Code Section 6702, addresses non-compliance based on unfounded legal or constitutional arguments. The law provided penalties intended to address those situations where a taxpayer is furthering a frivolous argument or demonstrates a prima facie intent to delay or impede the administration of the tax law.

Note:

Penalties, other than those calculated automatically, must have managerial approval as per IRC 6751(b). See IRM 20.1.1.2.3, Approval Prerequisite to Penalty Assessments.

See the table’s bullet list below for information associated with Frivolous Review Box criteria and definitions:

Frivolous Review Condition IRM Reference
Frivolous Filer/Non-Filer Returns IRM 3.11.3.6.1.6
Forms 2439 for an indication of "Reparation for African Americans" , "Black Investment Taxes" or similar statements IRM 3.11.3.6.1.6(6)
Altered or deleted jurat statement IRM 3.11.3.14.5
Frivolous Review Criteria Definition
Alleged Churches/First Amendment Receives income from non-religious sources, and may claim a vow of poverty. Submits a return where all, or substantially all, of the gross income is claimed as a contribution deduction on Schedule A of the return.
Altered Form Return with any or all line items altered with intent of facilitating non-compliance with the tax laws.
Altered Jurat/UCC 1308 Submits a return that contains income and deductions but the jurat has been altered or stricken. May include reference to UCC 1-308 or a statement that the return is not signed under penalties of perjury.
Amended Returns/Form 843 Files an amended return or a Form 843 to obtain a total refund on all taxes paid on prior years, based on a tax avoidance argument not supported by law.
Bosnian Refugee Claims Involves claims citing that they are entitled as "Bosnian Refugees" to eliminate any formerly claimed tax.
Challenges to Authority/Due Process Various administrative authorities such as delegation orders, summons authority, privacy act, etc. questioned or challenged.
Challenges to Authority/Title 26 or Law in Other Documents Argument that Title 26 of the U.S. Code is not law because it was never enacted as named.
Claim of Right Return Taxpayer cites a reduction to income as a "Claim of Right" and backs out some or all the wages on Schedule A. This may also result in a zero tax liability. May reference IRC 1341.
Disclaimer Submits documentation which contains a disclaimer. It says "disclaims the liability for the tax due" making the liability on the return zero.
Eisner vs. Macomber The individual reports wages but deducts them as non-taxable compensation/remuneration referencing Eisner vs. Macomber. The individual may alter line items showing non-taxable compensation or non-taxable receipts to back out some or all their income, generally resulting in a zero tax liability.
EIC with Disability Income The individual reports disability income as the sole source of income to claim earned income credit, but does not attach a Form W-2 or Form 1099.
Exempt Employees of World Bank Organization The individual files a return with a statement attached which asserts "World Bank Employee - Wages are not subject to income and/or non-taxable income - World Bank" . The individual lists an adjustment equal to the amount of wages and claims adjusted gross income is zero. May also cite IRC 893 which provides a tax exemption to some employees of international organizations.
Federal Reserve Notes are Not Legal Tender Argument that wages are not taxable because they were paid in federal reserve notes. Argument that the notes are not valid currency or legal tender and thus those who possess them cannot be subject to a tax on them.
Fifth Amendment Makes an improper blanket assertion of the Fifth Amendment right against self-incrimination as a basis for not providing any financial information.
Form 2555 Deduction The individual submits a return showing income, then deducts that same amount (or a large portion of that amount) by adding "Form 2555" to Schedule 1, line 8d or 8z. Form 2555, Foreign Earned Income, is usually attached showing the individual's foreign address in the United States, the individual also shows their income on Form 2555 as "foreign earned income" even though the employer's address is also in the United States. Correspondence may be attached arguing the term "income" and stating that each of the several states are foreign countries.
In Lieu of Wages/Receipts Not Income The individual submits a document captioned "In Lieu of U.S. Income Tax Form 1040" . The individual argues that salaries and wages are not income within the meaning of the Sixteenth Amendment. The individual also argues that the labor worth a certain amount is exchanged for money worth the same amount and therefore there is no income to be taxed.
IRC 1.861 For Individual Employees The individual files a return or claim stating that wages are not taxable based on CFR 1.861 and requests a refund of all Federal withholding.
IRC 1001/Even Exchange The statement, "IRC 1001 and following; even exchange of property-Labor (property) NO GAIN REALIZED Butcher's Union Co. v. Crescent City Co., 111 US 746 S. Ct. Rpt.pp.660-661" is generally found on an attachment to the return for Miscellaneous Deductions. All or part of all income is excluded by listing it as an itemized deduction and therefore, eliminating it as taxable income. Schedule A Miscellaneous Deduction line may say "See Statement" referring to the Miscellaneous Itemized Deduction statement.

Note:

May see deductions on Schedule A, line 6.

IRC 3121 The individual contends that IRC 3121 exempts the Federal Insurance Contribution Act (FICA) portion of earnings from the definition of "wages" and therefore from "gross income" for federal income tax purposes. The individual attempts to reduce taxable income by their portion of withheld social security tax.
IRS is a private organization/collects, tributes, not taxes Argument that the IRS is an entity named the Internal Revenue and Tax Service, Inc., which was incorporated in Delaware in 1933. Also, that since the IRS deposits revenues in the Federal Reserve Bank, it is a collection agency for the bank, thereby removing the cloak of governmental immunity. Additionally, they argue that the Department of Treasury is part of the United Nations and is clandestinely leading the tax-paying public into a "new world order" .
Non-negotiable Charge Back The individual attempts to sell their "birthright" back to the government for a large dollar amount and requests that a "Treasury Direct Account" be set up to hold the money.
Not a person or individual Argues that they are not a person or individual within the meaning of Internal Revenue Code and are therefore not subject to income taxes.
Not a citizen/Free Citizen/Not a resident of the Federal Zone Argues that they are not a citizen of the U.S. and receive no income or benefits from sources within the U.S. may also claim that they do not live in a federal district or zone.
Not Liable The individual submits returns or claims with "Not Liable" printed on the return. The returns also reflect zero money amounts.
Obscene/Vulgar/Harassment Submits documents or other materials indicating that non-filing stems from dissatisfaction with tax policies or taxation in general, which is often expressed with obscene, vulgar, or crude language and characters in an extremely demeaning manner. This includes individuals who, through receptive correspondence, indicate a refusal to comply with their tax obligations. (Note: This only applies to non-processable returns.)
Protest Against Government Action/Inaction Argument that refusal to file or pay is justified because they disagree with government policies or spending plans. May claim deductions or credits because of an objection to having taxes used to support various government activities.
Reparation Tax Return or correspondence referring to a reparation settlement based on the impact of slavery, or may refer to black taxes, reparations for African-Americans, or 40 acres and a mule. The Reparation Tax scheme may also include a Form 2439 with a fictitious IRC section, such as Overpayment of Taxes, Department of the Treasury, or Investment Taxes.
Services not taxable/Thirteenth Amendment/Form of servitude Argument that income results only from sale of goods, and therefore value of services is not taxable. This includes indentured servitude arguments and barter offsets. May also claim that the Thirteenth Amendment outlawed slavery. May claim to be "natural enfranchised individuals and freemen" who are residents of states, and therefore nonresident aliens for the purpose of the Internal Revenue Code.
Sixteenth Amendment Argues that the Sixteenth Amendment was not properly ratified and therefore the federal government does not have legal authority to collect an income tax without apportionment.
Taxes are Voluntary/Law Does Not Require Return or correspondence submitted that argues that income taxes are voluntary.
Unsigned Returns A statement why the return is not signed is attached or added to the return itself indicating disagreement with the tax system.
Untaxed Argument that they should not be taxed and attempts to drop out of the Social Security System. Also, will withdraw or rescind their SSN, claiming sovereign citizenship.
Valuation Argument that income is not taxable because of the declining fair market value of the dollar, because the dollar is not backed by gold/silver, because the value of services is offset by the value or labor (barter income), etc.
Wages deducted in Costs of Goods Sold A return is submitted with a Schedule C attached claiming a deduction, which is equal or nearly equal to the amount reported as wage income.
Wages/Receipts Not Income The individual argues that salaries and wages are not "income" within the meaning of the Sixteenth Amendment, which grants Congress the power to "Lay and collect taxes on income, from whatever source derived" . The individual could also argue that labor worth a certain amount is exchanged for money worth the same amount; therefore, there is no income to be taxed.
Zero Return/Nunc Pro Tunc Cites the phrase "Nunc Pro Tunc" which is Latin for "now for then" on the return, Form 1096, and/or Form 1099. Examples include: taxpayer lists all zeros and claims a refund of all federal withholding; taxpayer claims an amount for wages, AGI, and Standard Deduction, but enters no tax and claims a refund for all federal withholding; or taxpayer claims wages and AGI and carries AGI to refund line.
Zero Returns/U.S. vs Long A return with zero money amounts. Reference may be made to "U.S. vs Long" .
Zero Wages on a Substitute Form Taxpayer generally attaches either a substitute Form W-2, Form 1099, or Form 4852 that shows "$0" wages or no wage information. A statement may be included indicating the taxpayer is rebutting information submitted to the IRS by the Payer. Entries are usually for Federal Income Tax withheld, Social Security Tax withheld, and/or Medicare tax withheld. An explanation on the Form 4852 may cite "statutory language behind IRC 3401 and 3121" , or may include some reference to the company refusing to issue a corrected Form W-2 for fear of IRS retaliation.

Examination Review Box Criteria

ExaminationExam

The primary objective in identifying tax returns for Examination is to promote the highest degree of voluntary compliance. Exam will provide support and help Submission Processing (SP) with any questionable return identified during processing. Exam has a multitude of programs and tolerance criteria already identified in various IRM sections.

See the table below for information associated with Examination Review Box criteria:

Exam Review Criteria IRM 3.11.3.6.1.5
Frivolous Filer/Non-Filer Returns ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Glossary and Acronyms

Glossary ExhibitAcronyms Exhibit
GLOSSARY DEFINITION
ACTION CODES Numeric codes edited in the bottom center margin of a return to reject documents and identify the reason the document has been rejected.
ACTION TRAIL A notation in the lower left side margin on page 1 of a return which indicates or explains an action taken.
ADOPTION TAXPAYER IDENTIFICATION NUMBER (ATIN) A unique nine-digit temporary taxpayer identification number assigned by the IRS for a child in a domestic adoption where the adopting taxpayers are in the process of legally adopting the child but cannot get a Social Security Number for the child. Taxpayers obtain an ATIN by filing a Form W-7A with the Austin Service Campus, ATIN unit.
ALPHA CHARACTER A letter of the alphabet.
ALTERNATIVE MINIMUM TAX An additional tax owed by some taxpayers who claim certain deductions and credits which limit their regular tax liabilities.
AMENDED RETURN A return that changes information submitted on a previously filed return.
APPLICATION FOR TAXPAYER ASSISTANCE ORDER An application for relief from significant hardship usually requested by the taxpayer on Form 911.
ATTORNEY-IN-FACT A private attorney or other individual designated by another person pursuant to a written instrument to act on behalf of that person in the performance of any act or acts described in the written instrument (e.g., a power of attorney on Form 2848).
AUDIT CODE An alpha character edited in the right bottom margin of a return to identify a specific condition for the Examination Operation.
AUDIT CRITERIA Monetary and other information used by the computer to determine if the return should be selected for audit.
AUTOMATIC DATA PROCESSING (ADP) The handling and processing of data by mechanical and/or electronic equipment.
BATCH A group of blocks of documents.
BLOCK A group of up to 100 documents with consecutive DLNs containing the same block number (digits 9 through 11 of the DLN). (A block cannot contain more than 100 documents since the documents are numbered from 00 to 99.)
BUSINESS MASTER FILE (BMF) A magnetic tape file containing information about taxpayers filing business returns and related documents.
CALENDAR YEAR A tax year that begins January 1 and ends on December 31.
CAPTION AREA The area on a return which includes the taxpayer's TIN, name, and address.
CENTRALIZED AUTHORIZATION FILE (CAF) Computerized system of records which houses authorization information from Powers of Attorney (POAs), Tax Information Authorizations (TIAs) and state tax returns. The CAF system contains two types of records:
  1. Taxpayer records

  2. Representative records

CHECK DIGITS Two alpha characters used to identify the tax account.
CHILD The taxpayer's son, daughter, stepchild, adopted child, or grandchild.
Classified Waste Documentation containing taxpayer entity or account information that is not part of the case and is not needed for audit trail purposes. Refer to IRM 21.5.1, General Adjustments for guidance on handling classified waste.
CODING Placing symbols that have specific meanings on returns. These codes direct the computer to perform certain programmed functions.
COMPUTER CONDITION CODE (CCC) A single alpha or numeric character edited on a return which either identifies a special condition or directs the computer to take a specific programmed action. CCCs are posted to the Master File.
CORRESPONDENCE ACTION SHEETS (CAS) Forms used to request information from the taxpayer. Some are mailed to the taxpayer with the return; others generate a letter.
CREDIT ELECT RETURN A tax return on which the taxpayer applies all of a tax overpayment to the next year's estimated tax payments instead of asking for a refund.
CURRENT YEAR RETURN For processing in 2024, a Current Year Return is a return filed for tax year 2023.
DATA All information reported or coded on forms, schedules, and attachments.
DECEDENT RETURN A return filed for a deceased taxpayer.
DELINQUENT RETURN A return filed after the due date without an approved extension.
DEPENDENCY STATUS INDICATOR (DSI) A code on the tax return which indicates the taxpayer can be claimed as a dependent on another person’s tax return.
DFAS Defense Finance and Accounting Services
DOCUMENT Written information, (e.g., forms, schedules and attachments).
DOCUMENT LOCATOR NUMBER (DLN) A fourteen-digit number assigned to every return and document input through the Automatic Data Processing (ADP) system.
DUMMYING The act of transferring information provided by the taxpayer onto a required transcribed form/schedule.
EARNED INCOME CREDIT (EIC) Earned Income Credit is a special credit for certain qualified taxpayers who work and have limited income. The credit reduces the amount of income tax owed (if any) and is intended to offset some of the increases in living expenses and Social Security taxes.
ECONOMIC IMPACT PAYMENT (EIP) Payments authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
EDITING Preparing returns and attachments for data entry or other transcription processes by correcting entries and entering edit marks.
EMPLOYER IDENTIFICATION NUMBER (EIN) A nine-digit number that identifies the account of a business taxpayer on the Business Master File.
ENTRY Any type of mark entered by, or edited for, the taxpayer.
EQUITABLE RELIEF ELECTION A request made by a person claiming they filed a joint return and does not qualify for innocent spouse relief or separate liability election. Reference IRC 6015(f).
ERROR RESOLUTION SYSTEM (ERS) A system for the examination and correction of returns rejected due to taxpayer and processing errors.
FIDUCIARY RETURN A return signed by someone other than the taxpayer which is accepted by the IRS due to the legal relationship between the taxpayer and the person signing the return.
FILING STATUS (FS) A category determining the standard deduction and tax rate based on the taxpayer's marital status and living situation.
FISCAL YEAR A tax year which ends on a date other than December 31.
FORM An IRS document identified by a number, e.g., Form 1040.
FORM PROCESSING CODE (FPC) A single alpha or numeric character edited on a return which identifies when specific forms are attached to the return.
FOSTER CHILD Any child who has been placed by an authorized agency.
FRIVOLOUS FILER/NON-FILER Filers and non-filers who use certain types of tax avoidance arguments which are not supported by law.
HARDSHIP An indication of severe consequences for a taxpayer caused by the normal application of IRS regulations and procedures. Although a determination of hardship is highly subjective, the work leader must be consulted if a particular situation may be considered for referral to the Taxpayer Advocate Service (TAS).
INDIVIDUAL MASTER FILE (IMF) A magnetic tape file containing information about taxpayers filing individual income tax returns and related documents.
INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER (ITIN) A unique nine-digit number assigned by the IRS to individuals who must file a U.S. tax return or are listed as a spouse or a dependent and who do not have and cannot obtain a valid Social Security Number. Taxpayers obtain an ITIN by filing a Form W-7.
INJURED SPOUSE A person filing a joint return with an overpayment of taxes which is offset by their spouse's non-tax debt such as a student loan or back child-support, as well as by a tax debt that existed prior to the marriage. (A claim may be filed to protect the injured spouse's share of the joint overpayment.)
INNOCENT SPOUSE ELECTION An election made by a person who filed a joint return, or didn't file a return jointly in a community property state, and later claims the understatement of tax is attributable to an erroneous item of the other spouse of which the claimant had no knowledge or reason to know. The claimant must establish that it would be inequitable to hold the claimant liable. To make this election, a person must file Form 8857, Request for Innocent Spouse Relief, or a similar statement signed under penalties of perjury. Reference IRC 6015(b).
INTEGRATED DATA RETRIEVAL SYSTEM (IDRS) A system that enables employees in the area/territory offices and the campuses to have visual access to certain computer-based information in taxpayer accounts.
INTEGRATED SUBMISSION AND REMITTANCE PROCESSING SYSTEM (ISRP) A computerized system which will convert paper tax and information documents and remittances received by IRS into perfected electronic records of taxpayer data.
INTERNATIONAL RETURN A return on which income is excluded or not reported because of revenues from, payments to, or residence in a foreign country.
IRA CONDITION CODE A two-digit numeric code edited in the lower right margin of Page 2, Form 5329 to identify Reasonable Cause, requests for waiver, amended Forms 5329, or deceased IRA distribution recipients.
JULIAN DATE A calendar date expressed as the number of days since the beginning of the year. For example, February 1 is Julian Date 032.
JURAT The perjury statement required in the signature area of a tax return, form, or schedule.
LOCKBOX The process whereby remittances and documents are mailed to a designated P.O. Box at a commercial bank.
MASTER FILE A magnetic tape record which contains taxpayer accounts.
MEDICAL SAVINGS ACCOUNT (MSA) An MSA is a tax-exempt trust or custodial account set up in the USA exclusively for paying the qualified medical expenses of the account holder, spouse or dependent(s) in conjunction with a high deductible health plan.
MISBLOCKED RETURN A Form 1040 or Form 1040-SR, found in the wrong type of block or batch. For example, a Form 1040-SR found in a batch of Forms 1040.
MISFILED RETURN A Form 1040 or Form 1040-SR, filed when a BMF form should have been filed instead.
NAME CONTROL The first four characters of the taxpayer's surname. Also used for dependents, qualifying children, child care providers, etc.
NON-REMIT RETURN A tax return filed without a payment attached.
NON-RESIDENT ALIEN (NRA) An alien individual (not a U.S. citizen), who does not meet either the green card test or the substantial presence test for the calendar year.
NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS) A six-digit numeric code that identifies a particular business activity.
NUMERIC CHARACTER A number or numeral between 0 and 9, inclusive.
PERFECTING Making returns acceptable for data entry through editing procedures.
PIPELINE The areas in the IRS Submission Processing Campus that process a return from the time it is received until the data from the return is entered to an account in the IRS' main computer. These areas include Receipt and Control, Code and Edit, Data Conversion, Error Resolution, Rejects, and Unpostables.
POWER OF ATTORNEY (POA) A form authorizing a representative to perform certain acts on the taxpayer's behalf.
PREPARER CODE A code edited to the right of a Paid Preparer's EIN, TIN or SSN on the Form 1040, Form 1040A or Form 1040EZ.
PRESIDENTIAL ELECTION CAMPAIGN FUND (PECF) The taxpayer may designate $3 to support the Presidential Election Campaign.
PAID PREPARER TAX IDENTIFICATION NUMBER (PTIN) Paid preparer tax identification number.
PRIMARY TAXPAYER The taxpayer who is listed first on the name line caption of a joint return, regardless of whether that taxpayer is male or female.
PRIMARY TAXPAYER IDENTIFICATION NUMBER (P-TIN) The TIN associated with the taxpayer who is listed first on the name line of the caption.
PRIOR YEAR RETURN A return for a tax period prior to the current tax year.
PROCESSABLE RETURN A return which meets all the requirements for ISRP input.
RECEIVED DATE Date a return is received by the IRS. If the date is unknown and a Received Date is required, there is a prescribed formula for determining the date to edit as the Received Date. (Required on Amended, Fiscal Year, Short Year, Prior Year, and Delinquent Returns.)
RE-INPUT DOCUMENT A document that did not post to the Master File when originally entered and is now being entered again with a Form 3893, Re-Entry Document Control.
REMIT RETURN A tax return filed with a payment attached.
REMITTANCE A check, money order, or cash sent in with a return.
REMITTANCE PROCESSING SYSTEM (RPS) A computer controlled system through which payments and documents may be processed at a single multi-functional work station.
RETURN A legal document used by the taxpayer to report income, deductions, and tax liability.
RETURN DUE DATE The date in which the return is due to the Internal Revenue Service.
RETURN PROCESSING CODE (RPC) A single character edited on a return to direct the computer to take specific actions in processing the return. This code does not post to the Master File.
SCHEDULE An IRS document identified by alpha characters or numbers (e.g., Schedule B, Schedule 8812).
SECONDARY TAXPAYER The taxpayer who is listed second on the name line caption of a joint return, regardless of whether that taxpayer is male or female.
SECONDARY TAXPAYER IDENTIFICATION NUMBER (S-TIN) The TIN associated with the taxpayer whose name appears second on a joint return.
SELF-EMPLOYMENT TAX Social Security tax levied on self-employment income. This tax is computed on Schedule SE.
SE METHOD CODE A single-digit numeric code edited in the bottom center margin of Schedule SE when the optional method is used to calculate self-employment tax.
SEPARATE LIABILITY ELECTION An election made by a person who files a joint return claiming separate liability from their spouse. The claimant must be legally separated, living apart twelve months or more, or no longer married to the spouse with whom they filed the joint return at the time the claim is filed. Form 8857, Request for Innocent Spouse Relief or similar statement must be filed.
SIGNIFICANT ENTRY Any positive or negative number or dollar amount other than zero.
SOCIAL SECURITY NUMBER (SSN) A nine-digit number identifying the account of an individual on the Individual Master File.
SPECIAL PROCESSING CODE (SPC) A single alpha or numeric character edited on a return which either identifies a special condition or directs the computer to take a specific programmed action. SPCs are posted to the Master File.
SPOUSAL INDICATOR A single-digit numeric code edited to a joint return that indicates which taxpayer is filing the Form 5329 and/or Form 8606.
SSA 205(c) The section of the Social Security Administration (SSA) regulations which denies the issuance of a Social Security Number to a Non-resident Alien (NRA) who has no source of income in the United States.
STATUTE RETURN A return filed for a Tax Period more than three years prior to the current Tax Period.
STATUTORY EMPLOYEE A self-employed independent contractor who can report income and expenses on Schedule C, but Social Security and Medicare taxes withheld are reported on Form W-2.
SUFFIX Information added at the end of a word, phrase, or series of numbers. For instance, a title may be edited as a suffix to a name as in James Canary, Exec.
TAX EXAMINER (TE) STAMP A rubber stamp containing a unique identifying number of the Code & Edit tax examiner working the return.
TAX PERIOD The time covered by a particular return represented by the year and month in which the period ends. For example, "2312" stands for the tax year ending December 31, 2023.
TAXPAYER ADVOCATE SERVICE (TAS) An independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe than an IRS system or procedure is not working as it should.
TAXPAYER IDENTIFICATION NUMBER (TIN) A nine-digit number which identifies the account of an individual or business taxpayer. The TIN may be a Social Security Number (SSN), an Individual Taxpayer Identification Number (ITIN), Adoption Taxpayer Identification Number (ATIN) or an Employer Identification (EIN).
THIRD PARTY DESIGNEE Person given permission by the taxpayer to discuss their current year return processing issues with the IRS.
TRANSACTION CODE (TC) A three-digit numeric code defining the precise nature of an action posted to the Master File.
TRANSCRIPTION The process of transferring information from documents to a computer-readable form. Also called data conversion, input, and entry.
UNALLOWABLE CODE (UAC) A two-digit numeric code edited on Form 3471 to identify conditions on a return which are unallowable by law.
UNCOMPUTED RETURN A tax return filed by a taxpayer who chooses to have the IRS compute the tax or refund due.
UNPOSTABLES Data which cannot be entered successfully to an account at the Martinsburg Computing Center (MCC) and is returned to the Campus for corrective action.
UNPROCESSABLE DOCUMENT A document which cannot be perfected for the ADP system, usually because of incomplete information.
ACRONYM DEFINITION
AAC Agricultural Activity Code
ABI Age Blind Indicator
ACA Affordable Care Act
ADM Administrator
ADP Automatic Data Processing
AEIC Advance Earned Income Credit
AGI Adjusted Gross Income
AIL Additional Information Line
AI Annualized Income
AKA Also Known As
AMT Alternative Minimum Tax
AMTAP Accounts Management Taxpayer Assurance Program
AMT-CR Alternative Minimum Tax Credit
AP Approved Paragraph
APFD Alaska Permanent Fund Dividend
APO Army Post Office
ASED Assessment Statute Expiration Date
ATIN Adoption Taxpayer Identification Number
AUSPC Austin Submission Processing Campus
AWS Alternative Work Schedule
BMF Business Master File
BOB Block Out of Balance
CAF Centralized Authorization File
CAS Correspondence Action Sheet
CCC Computer Condition Code
CFE Credit for the Elderly
CGD Capital Gains Distribution
CLS Common Law Spouse
COMM Commissioner
CONS Conservator
CP Computer Paragraph
CPA Certified Public Accountant
CSPC Cincinnati Submission Processing Campus
CY Calendar Year
DAN Deposit Account Number
DCB Dependent Care Benefits
DD Direct Deposit
DECD Deceased
DFAS Defense Finance and Accounting Service
DFC Deferred Compensation
DLN Document Locator Number
DOD
  • Date of Death

  • Department of Defense

DPE Deemed Payment Election
DPO Diplomatic Post Office
DSI Dependency Status Indicator
EGA Ethics in Government Act
EIC Earned Income Credit
EIN Employer Identification Number
EIP Economic Impact Payment
ELF Electronic Filing
EPE Elective Payment Election
EPP Excess Parachute Payment
ERS Error Resolution System
ES Estimated Tax
ESOP Employee Stock Option Plan
ESP Economic Stimulus Payment
ESPI Estimated Tax Penalty Indicator
EXEC Executor
FB Fringe Benefit
FEC Foreign Employer Compensation
FICA Federal Insurance Contribution Act
FMV Fair Market Value
FNS Fuel from Non-conventional Source
FPC Form Processing Code
FPO Fleet Post Office
FS Filing Status
FSPC Fresno Submission Processing Campus
FRP Frivolous Return Program
FTD Federal Tax Deposit
FTF Failure to File
FTP Failure to Pay
FY Fiscal Year
GDN Guardian
HHM Household Member
HSH Household Employee
ICS Integrated Collection System
IDRS Integrated Data Retrieval System
IDT Identity Theft
IE Itemized Election
IMF Individual Master File
IRA Individual Retirement Account
IRC Internal Revenue Code
IRM Internal Revenue Manual
IRP Information Returns Processing
IRS Internal Revenue Service
IRSN Internal Revenue Service Number
ISRP Integrated Submission and Remittance Processing System
ITIN Individual Taxpayer Identification Number
KC Kidnapped Child
KCSPC Kansas City Submission Processing Campus
KITA Killed in Terrorist Action
LAFCP Living Abroad Foreign Care Provider
LEM Law Enforcement Manual
LSE Lump Sum Exclusion
LTC Long Term Care
MCC Martinsburg Computing Center
MeF Modernized e-File
MFA Married Filing Alien
MFJ Married Filing Jointly
MFS
  • Married Filing Separately

  • Multiple Filing Status

MFT Master File Tax
MIC Mortgage Interest Credit
MSA Medical Savings Account
MSRRA Military Spouses Residency Relief Act
NAICS North American Industry Classification System.
NCOA National Change of Address
NEI Non-Taxable Earned Income
NMI No Middle Initial
NO National Office
NOL Net Operating Loss
NPS National Park Service
NQ Non-Qualifying
NR No Record
NRA Non-Resident Alien
ODC Orphan Drug Credit
OID Original Issue Discount
OSPC Ogden Submission Processing Campus
OWPT Overpaid Windfall Profit Tax
PAO Process As Original
PAL Passive Activity Loss
PCD Program Completion Date
PDS Private Delivery Service
PECF Presidential Election Campaign Fund
PER REP Personal Representative
POA Power of Attorney
POD Post of Duty
POW/MIA Prisoner of War/Missing in Action
PRI Wages Earned as Prisoner
PPR
  • Personal Property Rental

  • Payment Plan Request

P-TIN Primary Taxpayer Identification Number
Prep. TIN(PTIN) Paid Preparer Tax Identification Number
PTC Premium Tax Credit
PY Prior Year
PYEI Prior Year Earned Income
QFE Qualified Farmers Election
QPA Qualified Performing Artist
RE Reimbursed Expenses
REC Residential Energy Credit
RICS Return Integrity and Compliance Services
RIVO Return Integrity and Verification Operation
REMIC Real Estate Mortgage Investment Conduits
RPC Returns Processing Code
RPS Remittance Processing System
RRB Railroad Retirement Benefits
RRC Recovery Rebate Credit
RRTA Railroad Retirement Tax Act
RTN Routing Transit Number (for Direct Deposit)
SERP Servicewide Electronic Research Program
SPC
  • Special Processing Code

  • Submission Processing Center

SCH Scholarship
SE Self-Employment
SFR Substitute for Return
SSA Social Security Administration
SSI Supplemental Security Income
SSN Social Security Number
S-TIN Secondary Taxpayer Identification Number
SST Social Security Tax
SUB Supplemental Unemployment Benefit
TANF Temporary Assistance for Needy Families
TAS Taxpayer Advocate Service
TC Transaction Code
TCE Tax Counseling for the Elderly
TDI Taxpayer Delinquency Investigation
TE Tax Examiner
TEI Tax Exempt Interest
TIA Tax Information Authorization
TIN Taxpayer Identification Number
TP Taxpayer
TR Trustee
TRA Trade Readjustment Act
TY Tax Year
USPS United States Postal Service
UT Uncollected Tax
UTOT Uncollected Tax on Tips
VA Veterans Administration
VITA Volunteer Income Tax Assistance
W/H Withholding

Form 6001: Instructions for Completing Form 6001 (Letter 12C) Correspondence Action Sheet

  • Each box on the left side of the page represents a paragraph. Check only one form or schedule per paragraph. Select as many paragraphs as needed.

  • The numbers in parentheses throughout Form 6001 represent input field numbers. When a field number is followed by a blank, fill in the missing information (usually a dollar amount, a line number, or a form/schedule number). When a field number is followed by items separated by slashes, circle the correct option. Do not delete or change the field numbers.

  • When filling in blanks, write the line number or form as it appears on the form. For example, line 18a will be written as "18a" with a lower case a.

  • Write legibly. Edit amounts in dollars and cents. Bracket negative amounts.

  • Always edit Action Code "211" on the return.

    Exception:

    If corresponding for a missing Form 8962, edit Action Code "224" .

Form 6001: Instructions for Completing Form 6001 (Letter 12C) Correspondence Action Sheet, Page 1

Form 6001
A To correspond for a missing SSN for a dependent (e.g., Form 1040, Dependent area), use paragraph (F).
B For paragraphs (I) through (N), check letter box I, J, or K for missing forms and letter box L, M, or N for missing schedules. Also, check one sub-box using the preprinted form or schedule number or write the form/schedule number on the blank line. The sub-box information must be filled in all the way across. If there is a choice of line numbers or forms, circle the correct option.
For example, Schedule A has an entry of "600" on line 12, and Form 8283 is not attached. Check box "I" , and fill in the blank lines for the form number, the amount and line number. Write the form "8283" , the amount "600.00" , and line "12" .
C Check only one form or schedule per paragraph. If additional forms or schedules are needed, select another paragraph. See the example in paragraphs (J) and (K).
For example, Forms 8863 and 8880 are missing. Check paragraph (J) for the preprinted Form 8863, line 3 Schedule 3. Also, check paragraph (K) and write the form "8880" , the amount "200.00" , and the line number "4" . Circle S for Schedule and write "3" .
D Check paragraph (O) to explain an entry when required. When a field number is followed by items separated by slashes, circle the correct option. For example, (38) is followed by F/S. Since the missing information is from Schedule A, circle S for Schedule.
E In paragraph (W), circle the applicable form or schedule for field (54).
F If selecting paragraph (e), only fill-ins approved by National Headquarters Analyst can be used. Refer to Exhibit 3.11.3-18 for the approved fill-in paragraphs.
G Always select applicable campus fax number, paragraph (h-j).

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Form 3531 Instructions

Instructions for Form 3531, Page 1

Form 3531
A Always check box 1 to request a valid original signature.
B Check box 2 for a missing jurat. Altered or deleted jurat - route to Frivolous Filer Program.
C Correspond for a missing SSN for the primary/secondary taxpayer only when corresponding for other missing information.
D Correspond for a missing SSN for dependents (i.e., Form 1040, Dependent area) only when corresponding for other missing information.
E Check box 6 when corresponding for withholding support.
F Check box 7 when source of earned income is missing to support line 27.
G When page 1 or 2 of Form 1040/A is missing, research as necessary for TC150 and ERS status. If not found, check box 9. Dummy page 1 caption area if missing.
H Check box 10 for a misfiled return.
I Check box 11-14 to request forms or schedules to support entries on forms or schedules.
J Check box 15 to request multiple forms or schedules to support entries on Forms 1040.
 
  • Line through TE stamp and stop coding.

  • Circle out the received date.

  • All amounts on Form 3531 must be edited in dollars and cents. Bracket negative amounts.

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Instructions for Form 3531, Page 2

K Check box 16 when corresponding for missing Schedule C or F, Schedule SE is not attached or claimed and Schedule 1, lines 3 or 6 are $434 or more.
L Check box 18 when a line entry is required on a form or schedule.
M Check box 19-20 for an explanation of entry on a form or schedule. Example: Schedule A, line 10 is missing a supporting document.
N Check box 21 when the number of months is missing on Schedule EIC.
O Check box 24 for a missing date of death.
P Check box 27 on a decedent return when a signature is missing or photocopied. Edit "Estate of" in the caption area when no living taxpayer is present.
Q Check box 28 when supporting documentary evidence is missing or incomplete on a decedent return and a valid signature is also missing. If the only correspondence is for missing or incomplete documentary evidence on a decedent return use Form 6001/A.
R If selecting box 30, only approved fill-ins can be used. An open paragraph (fill-in) must always be approved by the National Headquarters Analyst. See Exhibit 3.11.3-18.

Correspondence Fill-in Paragraphs

Para # Title Text
1 Multiple tax years, need one year You sent us a tax return that includes page 1 for tax year XXXX and page 2 for tax year XXXX. To process your tax return for tax year XXXX, send us a completed return with your original signature (and your spouse’s if filing jointly). Enclose your Forms W-2 and all forms or schedules used to complete your tax return.

NOTE: XXXX = tax year.
NOTE: Tax Period in second sentence should be the tax period on page 1.
2 Multiple tax years, need both years You sent us a tax return that includes page 1 for tax year XXXX and page 2 for tax year XXXX. To process your tax return, send us a completed return for each tax year with your original signature (and your spouse’s if filing jointly). Enclose your Forms W-2 and all forms or schedules used to complete each tax return.

NOTE: XXXX = tax year.
3 Illegible name claiming deceased refund The name of the person claiming the deceased taxpayer‘s refund is illegible. Send us the printed name of the person claiming the refund.
4 Form 1128 required for accounting period change The tax return you submitted indicates you are changing your accounting period. Send us Form 1128, Application to Adopt, Change, or Retain a Tax Year, a copy of your application, or a statement relating to an application to change your accounting period. We are unable to process your return as submitted without this documentation or IRS authority.
5 Excess gross Social Security We have delayed processing your return because we have questions about the withholding or credit you claimed. Send us your official supporting documents such as Form SSA-1099, Form RRB-1099, or other Form 1099 to support the withholding or credit. If we do not receive proper official documents, we may deny your claim.
6 Qualified Joint Venture If you are electing to exempt rental real estate business from Schedule C or C-EZ as a Qualified Joint Venture Election, enter "Exempt-QJV" and the exempt amount on the dotted line to the left of Schedule SE, line 3. Subtract that amount from the total of lines 1a, 1b, and 2 and enter the result on line 3, Schedule SE. Send us your corrected Schedule SE.
7 Gambling: gross amount missing The gross amount of your gambling winnings received is not reported on Form 1040. Send us the amount of your gross winnings shown on Form(s) W-2G, box 1.
8 Student/Disabled Form 2441/ Schedule 2 Special instructions apply for students or disabled persons when completing Child and Dependent Care Expenses, lines 4 and 5. Send us the number of months, during the tax year, that you (or your spouse if filing jointly) were either a full-time student or disabled. Also send us the correct amount for line 4 (and line 5, if filing jointly).
9 Excess SST The Forms W-2, submitted with your tax return, are insufficient to support the amount you claimed for excess social security and tier 1 RRTA tax withheld on your Form 1040. Send us all the Forms W-2 used to support your claim for excess SST/RRTA.
10 Form 2439 copy needed Send us a copy of Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, to support your entry on Form 1040.
11 Form 8958 required It appears you have allocated community property on your tax return. Send us a completed Form 8958, Allocation of Tax Amounts Between Certain Individuals in Community Property States, to support your return.
12 Form 8958 incomplete Your Form 8958, Allocation of Tax Amounts Between Certain Individuals in Community Property States, is incomplete. Entries are required for your spouse's or partner's first name, last name, and social security number. Send us a completed Form 8958.
13 Schedule SE allocated It appears the self-employment tax from Schedule SE has been allocated. Self-employment tax can’t be allocated. Please explain your figures and let us know if all the self-employment income reported on Schedule SE belongs to you alone.
14 Form W-2 required Send us the Forms W-2 used to support the income you reported on Schedule C, line 1. If you received a Form 1099-NEC or Form 1099-MISC for payment in cash for services or for non-employee compensation and the payer did not withhold Social Security and Medicare taxes, send us a completed Schedule SE. If you are not liable for self-employment tax, provide an explanation.
15 Schedule C/F missing We are missing information needed to support your entry on Form 1040, ______. It appears more than one schedule was used to compute the amount. Send us all the schedules used to support the amount.

Note:

TY18 and later, complete fill-in with "Schedule 1, line ___" ; TY17 and prior, complete fill-in with "line ___" .

16 Schedule C, line 1, inconsistent Explain the amount you entered on Schedule C, line 1, for statutory income. Your entry is inconsistent with the statutory wages reported on your Form W-2.
17 Schedule C, line 1 - SE and W-2 income - Form W-2 present Send us two completed Schedules C; one for statutory income and one for the other income reported on line 1 of Schedule C. Also, send a completed Schedule SE if you received payment in cash or as a non-employee, and the payer didn’t withhold Social Security and Medicare taxes. If you are not liable for self-employment tax, provide an explanation.
18 Schedule C, line 1 - SE and W-2 income – No Form W-2 Send us two completed Schedules C; one for statutory income and one for the other income reported on line 1, along with Form W-2 to support the wage income. Also, send a completed Schedule SE if you received payment in cash or as a non-employee, and the payer didn’t withhold Social Security and Medicare taxes. If you are not liable for self-employment tax, provide an explanation.
19 Form 8839 and supporting adoption documents Send us a completed Form 8839 and provide adoption-related documents to support your claim. Documentation must be provided for each child claimed, including any credit carry-forwards from a previous year. The required documentation varies depending on whether the adoption is final or whether the child has special needs. See the Form 8839 instructions for requirements.
20 Form 5405, line 2 You have conflicting entries on your Form 5405 regarding whether you are required to repay the credit. You checked the box on line 2, Form 5405, and made entries in Part II for a repayment. Send us a corrected Form 5405.
21 Form 5405 (FTHBC) multiple disposition boxes checked line 3 (line 13 PY) You checked more than one box (boxes a – h) on Form 5405 to define the disposition of your home. Please tell us which one best describes the disposition of your main home.
22 Form 5405 (FTHBC) - name/SSN doesn’t match Primary The social security number or name listed on your Form 5405 doesn’t match the social security number or name of the primary taxpayer shown on page 1 of your tax return. Send us the correct name and social security number of the person filing Form 5405.
23 Second correspondence Thank you for sending us the information we requested on your tax return for the period shown on page 1 of this letter. We still need more information to process your return.
24 Missing signature - spouse refuses to sign - FS2 (Married Filing Jointly) only We can’t process your return as filed. If this is a joint return, both spouses must sign. If you and your spouse do not agree to file a joint return, you must use a different filing status on your return. See Publication 501 for more information concerning your filing status options.
25 Claiming exemption for deceased spouse You may file a joint return, if your spouse died during the tax year and you didn’t remarry during the tax year. If you have dependent children, you may claim qualifying Surviving Spouse status for the following two years. Send us your spouse's name and social security number.
26 Form 8283, Schedule A Send us a completed Form 8283, Noncash Charitable Contribution. The appraiser must complete and sign Part III of Form 8283. If you use appraisals by more than one appraiser, or if two or more appraisers contribute to a single appraisal, all the appraisers must sign Part III of Form 8283.
27 Schedule A, Art You checked box "a" (Art contribution of $20,000 or more) on line 4, page 2 of Form 8283, Noncash Charitable Contributions. An art deduction of $20,000 or more requires a separate qualified appraisal. Also, entries in Section B of Form 8283 require Parts III and IV to be completed. Send us a complete copy of the signed appraisal and a completed Form 8283, if applicable.
28 Credit for Elderly (CFE) – IRS computes To have the IRS figure your credit for the elderly, you must send us a completed Schedule R. Check the correct box in Part I, and fill in Part II, and lines 11 and 13 of Part III, if they apply to you.
29 EIC – IRS computes To have the IRS figure your earned income credit, you must send us a completed Schedule EIC.
30 TY17 through TY12 Schedule 8812, Part 1 Schedule 8812, Part 1, must be completed for each dependent that has an Individual Taxpayer Identification Number (ITIN) and is a qualifying child for the child tax credit. Send us a completed Schedule 8812.
31 Form 1095–A Send us a copy of your Form 1095-A, Health Insurance Marketplace Statement, to support your entries on Form 8962, Premium Tax Credit. If you didn't receive one or your Form 1095-A is incorrect, visit www.healthcare.gov or your state marketplace website.
32 Loose Schedule H missing signature (Code & Edit Only) If you are not required to file a tax return, send us a completed Part IV, Schedule H, with your original signature. If someone other than the taxpayer is signing Schedule H, include a power of attorney, court certificate or Form 2848.
33 Form 3468, NPS Send us a copy of the first page of NPS Form 10-168a, Historic Preservation Certification Application (Part 2- Description of Rehabilitation), to support your rehabilitation credit on Form 3468, Investment Credit.
34 Schedule A, Noncash contributions > $500,000 You claimed a charitable deduction of more than $500,000 on Schedule A, line __. A deduction of more than $500,000 requires a separate qualified appraisal. Also, entries in Section B of Form 8283 require Parts III and IV to be completed. Send us a complete copy of the signed appraisal and a completed Form 8283, if applicable.
35 Form 1040, line 40 (disaster notated) Schedule A is incomplete or missing from your return. Complete the schedule with information that supports your entry for itemized deductions on Form 1040. If applicable, you must also submit any supporting forms for Schedule A, such as Form 4684.
36 Missing multiple attachments Your return is incomplete. Your supporting forms and attachments are missing and required to process your return. You must resubmit all applicable forms and schedules to support your entries on pages 1 and 2 of your return.

Note:

This fill-in should be used only when paragraphs I through N are not adequate to request all missing forms and schedules.

37 SE Tax liability The income you reported on line(s) ______, Form _______, indicates you may be liable for self-employment tax. This tax applies when Social Security and Medicare taxes are not withheld from your earnings. For example, if you received cash for services performed, Form 1099-MISC or Form 1099-NEC for nonemployee compensation, your earnings may be subject to self-employment tax.

Note:

Use this fill-in only when the taxpayer appears to be liable for Self-Employment Tax on more than one line of the return.

38 Thank You, Second Correspondence (PY) Thank you for sending us the information we requested. We still need more information. The adjusted gross income transferred from page 1 to page 2 of your return doesn’t match your originally filed return. Send us a newly completed tax return with your original signature(s). Include all forms and schedules required to support your tax return entries.
39 Form 5405 disposition Your Form 5405 shows a disposition or change in the use of your main home. It also shows conflicting entries regarding whether you are required to repay the credit. If you checked the box on line 12 of Form 5405, no repayment of the credit is required. Provide an explanation for your entries in Part IV.
40 FS 3 with spousal income Your return includes income for a spouse whom you claimed as a dependent. You must refile as either married filing jointly to include spousal income, or each spouse must file as married filing separately and report their individual income. Resubmit a corrected return with your original signature(s). Enclose all forms, schedules, and Forms W-2 used to complete your tax return.
41 Form 8959, line 19, withholding support The Forms W-2, submitted with your tax return, are insufficient to support the amount you claimed for withholding on Form 8959, line 19. Submit all applicable Forms W-2 used to support this amount.

Conversion of TY17-TY14 Forms 1040, 1040A, and 1040EZ, Using 2023 Form 6114, 6114-A and/or Schedules

TY17-TY14 Form 1040 Prior Year Form 1040A Prior Year Form 1040EZ Edit to Form 6114 or Form 6114-A
Line 7 Line 7 Line 1 Line 1a
Line 8a Line 8a Line 2 Line 2b
Line 8b Line 8b   Line 2a
Line 9a Line 9a   Line 3b
Line 9b Line 9b   Line 3a
Line 10     Schedule 1, Line 1
Line 11     Schedule 1, Line 2a
Line 12     Schedule 1, Line 3
Line 13 Line 10   Line 7
Line 14     Schedule 1, Line 4
Line 15a Line 11a   Line 4a
Line 15b Line 11b   Line 4b
Line 16a Line 12a   Line 5a
Line 16b Line 12b   Line 5b
Line 17     Schedule 1, Line 5
Line 18     Schedule 1, Line 6
Line 19 Line 13 Line 3 Schedule 1, Line 7
Line 20a Line 14a   Line 6a
Line 20b Line 14b   Line 6b
Line 21     Schedule 1, Line 9
Line 22 Line 15   Line 9
Line 23 Line 16   Schedule 1, Line 11
Line 24     Schedule 1, Line 12
Line 25     Schedule 1, Line 13
Line 26     Schedule 1, Line 14
Line 27     Schedule 1, Line 15
Line 28     Schedule 1, Line 16
Line 29     Schedule 1, Line 17
Line 30     Schedule 1, Line 18
Line 31a     Schedule 1, Line 19a
Line 31b     Schedule 1, Line 19b
Line 32 Line 17   Schedule 1, Line 20
Line 33 Line 18   Schedule 1, Line 21
Line 34 Line 19   Schedule 1, Line 22
Line 35     Schedule 1, Line 25
Line 36 Dotted Portion     Schedule 1, Line 25
MSA MSA   Schedule 1, Line 23
Line 36 Line 20   Line 10
Line 37 Line 21 Line 4 Line 11
Line 43 Line 27 Line 6 Line 15
Line 44 Line 28 Line 10 Line 16
Line 45     Schedule 2, Line 1
Line 46 Line 29   Schedule 2, Line 2
Line 48     Schedule 3, Line 1
Line 49 Line 31   Schedule 3, Line 2
Line 50 Line 33   Schedule 3, Line 3
Line 51 Line 34   Schedule 3, Line 4
Line 52 Line 35   Line 19
Line 53     Schedule 3, Line 5a
Line 54     Schedule 3, Line 7
Line 54A     Schedule 3, Line 7
Line 54B     Schedule 3, Line 7
Line 54C     Schedule 3, Line 7
Line 55 Line 36   Line 21
Line 57     Schedule 2, Line 4
Line 58     Schedule 2, Line 7
Line 59     Schedule 2, Line 8
Line 60a     Schedule 2, Line 9
Line 60b     Schedule 2, Line 10
Line 62C     Schedule 2, Line 13
Line 63 Line 39   Line 24
Line 64 Line 40   Line 25d
Line 65 Line 41   Line 26
Line 66a Line 42a   Line 27
Line 66b Line 42b   Line 1i
Line 67 Line 43   Line 28
Line 68 Line 44   Line 29
Line 69 Line 45   Schedule 3, Line 9
Line 70     Schedule 3, Line 10
Line 71     Schedule 3, Line 11
Line 72     Schedule 3, Line 12
Line 73     Schedule 3, Line 14
Line 73A     Schedule 3, Line 13a
Line 74 Line 46   Line 33
Line 76a Line 48a Line 13a Line 35a
Line 77 Line 49   Line 36
Line 78 Line 50 Line 14 Line 37
Line 79 Line 51   Line 38