- 3.11.217 Form 1120-S Corporation Income Tax Returns
- 3.11.217.1 Program Scope and Objectives
- 3.11.217.1.1 Background
- 3.11.217.1.2 Authority
- 3.11.217.1.3 Roles and Responsibilities
- 3.11.217.1.4 Program Management and Reviews
- 3.11.217.1.5 Program Controls
- 3.11.217.1.6 Terms and Acronyms
- 3.11.217.1.7 Related Resources
- 3.11.217.2 General Information
- 3.11.217.2.1 ♦Business Master File (BMF) Consistency♦
- 3.11.217.2.2 ♦IRM Deviation Procedures♦
- 3.11.217.2.3 ♦Taxpayer Advocate Service (TAS)♦
- 3.11.217.2.3.1 ♦TAS Service Level Agreements (SLAs)♦
- 3.11.217.2.4 Business Master File (BMF) Identity (ID) Theft
- 3.11.217.2.5 ♦Criminal Investigation (CI) Referral♦
- 3.11.217.2.6 ♦Examination (Exam) "Funny Box" ♦
- 3.11.217.2.7 ♦Edit Marks♦
- 3.11.217.2.8 ♦Frivolous Arguments♦
- 3.11.217.2.9 ♦Foreign Currency♦
- 3.11.217.2.10 ♦Protective Claims♦
- 3.11.217.2.11 Section 965 Returns (201712 through 202012)
- 3.11.217.2.12 Elective or Deemed Payment Election (DPE) and Credit Transfers
- 3.11.217.3 Unprocessable Documents - Error Resolution System
- 3.11.217.3.1 Action Codes
- 3.11.217.3.2 Unprocessable Conditions and Rejection of Documents
- 3.11.217.3.3 Treatment of All Unprocessable Tax Returns
- 3.11.217.3.4 ♦Correspondence♦
- 3.11.217.3.4.1 ♦Definition of Correspondence from Taxpayers♦
- 3.11.217.3.4.2 ♦Issuing Correspondence♦
- 3.11.217.3.4.3 ♦Correspondence Imaging Inventory (CII) Returns♦
- 3.11.217.3.4.4 ♦Internal Revenue Service (IRS) Employee Contacts♦
- 3.11.217.3.4.5 ♦Use of Fax for Taxpayer Submissions♦
- 3.11.217.3.5 C/SC Letters
- 3.11.217.3.6 ♦Compliance Secured/Prepared Returns♦
- 3.11.217.3.6.1 ♦IRC 6020(b) Prepared by Collections♦
- 3.11.217.3.6.2 ♦Collection Secured♦
- 3.11.217.3.6.3 ♦Examination Prepared♦
- 3.11.217.3.6.4 ♦Examination Secured♦
- 3.11.217.3.7 ♦Statute Returns♦
- 3.11.217.3.8 ♦Re-Entry Document Procedures♦
- 3.11.217.3.8.1 ♦Form 3893 - Re-Entry Document Control♦
- 3.11.217.3.8.2 ♦Form 13596 - Reprocessing Returns♦
- 3.11.217.3.9 ♦Amended Returns♦
- 3.11.217.3.10 Prompt Assessment or Prompt Determination - Form 4810
- 3.11.217.3.11 ♦Refund Returns (45 Day Jeopardy and High Dollar Refunds)♦
- 3.11.217.4 Examination of Tax Data
- 3.11.217.4.1 Non-Standard or Prior Year Format
- 3.11.217.4.2 Conversion of Form 1120 to Form 1120-S
- 3.11.217.4.3 Significant Entries
- 3.11.217.4.4 Incomplete Return
- 3.11.217.4.5 Editing Dollars and Cents
- 3.11.217.4.6 Negative Entries
- 3.11.217.5 ♦Entity Perfection♦
- 3.11.217.5.1 ♦Entity Perfection - General♦
- 3.11.217.5.2 ♦Bankruptcy♦
- 3.11.217.5.3 ♦Entity Perfection - Employer Identification Number (EIN)♦
- 3.11.217.5.4 ♦Entity Perfection - Name Control♦
- 3.11.217.5.5 ♦Entity Perfection - "In-Care-Of" Name♦
- 3.11.217.5.6 ♦Entity Perfection - Domestic Addresses♦
- 3.11.217.5.7 ♦Entity Perfection - Foreign Address (OSPC)♦
- 3.11.217.5.7.1 ♦Country Code - Canada♦
- 3.11.217.6 Tax Period
- 3.11.217.6.1 Tax Period - General
- 3.11.217.6.2 Tax Period Beginning - Final, Initial, or Short Period Return
- 3.11.217.6.3 Early Filed Return
- 3.11.217.6.4 Short Period - Editing Proof of Entitlement
- 3.11.217.6.5 Short Period - Missing Proof of Entitlement
- 3.11.217.6.6 Short Period Returns - Editing a Disapproved Application (Form 1128)
- 3.11.217.6.7 Short Period Returns - Editing Form 1128 With No Indication of Approval or Disapproval
- 3.11.217.6.8 Short Period Return with Prepaid Credits
- 3.11.217.7 ♦Received Date♦
- 3.11.217.8 North American Industry Classification System (NAICS) Code - Page 1, Box B
- 3.11.217.9 Schedule M-3 Attached - Page 1, Box C
- 3.11.217.10 Total Assets - Page 1, Box F
- 3.11.217.11 Initial Return Code - Page 1, Box G
- 3.11.217.12 Number of Shareholders - Page 1, Line I
- 3.11.217.13 Additional Form 1120-S Perfection
- 3.11.217.13.1 Audit Codes
- 3.11.217.13.2 Penalty and Interest Code
- 3.11.217.13.3 Installment Sale Indicator
- 3.11.217.13.4 Tax Preference Code
- 3.11.217.13.5 Form 8586, Low-Income Housing Credit
- 3.11.217.13.6 Form 8611, Recapture of Low-Income Housing Credit
- 3.11.217.13.7 Return Processing Code (RPC)
- 3.11.217.14 Computer Condition Codes
- 3.11.217.14.1 CCC "B" - Schedule M-3
- 3.11.217.14.2 ♦CCC "D" - Reasonable Cause for Failing to Pay Timely♦
- 3.11.217.14.3 CCC "E" - Potential Identity Theft Filing
- 3.11.217.14.4 CCC "F" - Final Return
- 3.11.217.14.5 ♦CCC "G" - Amended Returns♦
- 3.11.217.14.6 CCC "I" - Tax Straddles and Future Contracts (Form 6781)
- 3.11.217.14.7 CCC "J" - Section 965 Tax
- 3.11.217.14.8 CCC "L" - Treaty Based Positions
- 3.11.217.14.9 CCC "M" - Form 8949 Sales and Other Dispositions of Capital Assets
- 3.11.217.14.10 CCC "O" - Module Freeze
- 3.11.217.14.11 CCC "P" - BMF Mail Indicator
- 3.11.217.14.12 ♦CCC "R" - Reasonable Cause for Failing to Timely File Return♦
- 3.11.217.14.13 CCC "S" - Form 8883, Asset Allocation Statement Under Section 338
- 3.11.217.14.14 CCC "T" - Form 8886, Reportable Transaction Disclosure Statement
- 3.11.217.14.15 ♦CCC "W" - Return Cleared by Statute Control♦
- 3.11.217.14.16 CCC "X" - Refund/Settlement Freeze
- 3.11.217.14.17 CCC "Y" - Short Period Return for Change of Accounting Period
- 3.11.217.14.18 CCC "1" - Like-Kind Exchanges
- 3.11.217.14.19 CCC "2" - Form 8938, Statement of Specified Foreign Financial Assets
- 3.11.217.14.20 ♦CCC "3" - No Reply to Correspondence♦
- 3.11.217.14.21 CCC "8" - Waiver of Estimated Tax Penalty
- 3.11.217.14.22 CCC "9" - Low-Income Housing Forms
- 3.11.217.15 Return Processing
- 3.11.217.15.1 Sequence of Return - Form 1120-S
- 3.11.217.15.2 Positive/Negative Figures
- 3.11.217.16 Income Items - Lines 1 through 6, Page 1
- 3.11.217.16.1 Line 1 - Gross Receipts or Sales
- 3.11.217.16.2 Line 2 - Cost of Goods Sold
- 3.11.217.16.3 Line 4 - Net Gain (Loss)
- 3.11.217.16.4 Line 5 - Other Income (Loss)
- 3.11.217.16.5 Line 6 - Total Income (Loss)
- 3.11.217.17 Deduction Items and Computation of Ordinary Income - Lines 7 through 22, Page 1
- 3.11.217.17.1 Line 7 - Compensation of Officers
- 3.11.217.17.2 Line 8 - Salaries and Wages
- 3.11.217.17.3 Salary and Wage Code
- 3.11.217.17.4 Line 9 - Repairs and Maintenance
- 3.11.217.17.5 Line 10 - Bad Debts
- 3.11.217.17.6 Line 11 - Rents
- 3.11.217.17.7 Line 12 - Taxes and Licenses
- 3.11.217.17.8 Line 13 - Interest
- 3.11.217.17.9 Line 14 - Depreciation
- 3.11.217.17.10 Line 15 - Depletion
- 3.11.217.17.11 Line 16 - Advertising
- 3.11.217.17.12 Line 17 - Pension Profit Sharing Plan
- 3.11.217.17.13 Line 18 - Employee Benefit Programs
- 3.11.217.17.14 Line 19 - Energy Efficient Commercial Buildings Deduction (Form 7205) (202301 and later)
- 3.11.217.17.15 Line 20 - Other Deductions
- 3.11.217.17.16 Line 21 - Total Deductions
- 3.11.217.17.17 Line 22 - Ordinary Business Income (loss)
- 3.11.217.18 Tax and Payments - Lines 23 through 28, Page 1
- 3.11.217.18.1 Line 23b - Tax from Schedule D (Form 1120-S)
- 3.11.217.18.2 Line 23c - Total Tax
- 3.11.217.18.3 Line 24a - Estimated Tax Payments
- 3.11.217.18.4 Line 24b - Tax Deposited with Form 7004
- 3.11.217.18.5 Line 24c - Credit for Federal Tax Paid on Fuels – Form 4136
- 3.11.217.18.6 Line 23d Add lines 23a through 23c (2021 year revisions and 2017 - 2007 revision Form 1120-S)
- 3.11.217.18.7 Line 23d - Reserved (2020 - 2019 revision Form 1120-S)
- 3.11.217.18.8 Line 23d - Refundable Credit from Form 8827 (2018 revision Form 1120-S)
- 3.11.217.18.9 Line 23e - Tax and Payments (2020 - 2018 revision Form 1120-S)
- 3.11.217.18.10 Line 24z - Add lines 24a through 24d (2301 Form 1120-S revision and later)
- 3.11.217.18.11 Line 25 - Estimated Tax Penalty
- 3.11.217.18.12 Line 24 - Estimated Tax Penalty (2022 - 2018 Form 1120-S revision)
- 3.11.217.18.13 Lines 26 and 27 - Amount Owed/Overpayment
- 3.11.217.18.14 Backup Withholding
- 3.11.217.19 ♦Signature♦
- 3.11.217.20 ♦Paid Preparer Checkbox Indicator♦
- 3.11.217.21 ♦Paid Preparer Section♦
- 3.11.217.21.1 ♦Paid Preparer's Tax Identification Number (PTIN)♦
- 3.11.217.21.2 ♦Firm’s Employer Identification Number (EIN)♦
- 3.11.217.21.3 ♦Paid Preparer Telephone Number♦
- 3.11.217.22 Schedule A - Cost of Goods Sold (2010 and prior revisions)
- 3.11.217.23 Schedule B - Other Information
- 3.11.217.23.1 Accounting Method Code
- 3.11.217.23.2 Form 8996 - Qualified Opportunity Fund Checkbox
- 3.11.217.23.3 Digital Asset Checkbox
- 3.11.217.24 Schedule K - Shareholders' Pro Rata Share Items
- 3.11.217.24.1 Schedule K, Line 2 - Net rental real estate income (loss)
- 3.11.217.24.2 Schedule K, Line 4 - Interest income
- 3.11.217.24.3 Schedule K, Line 10 - Other income (loss)
- 3.11.217.24.4 Schedule K, Line 12d - Other deductions
- 3.11.217.24.5 Schedule K, Line 13a - Low-income housing credit (section 42(j)(5))
- 3.11.217.24.6 Schedule K, Line 13b - Low-income housing credit (other)
- 3.11.217.24.7 Schedule K, Line 13f - Biofuel producer credit
- 3.11.217.24.8 Schedule K, Line 13g - Other credits
- 3.11.217.24.9 Schedule K, Line 14 - International Checkbox
- 3.11.217.24.10 Schedule K, Line 16f - Foreign taxes paid or accrued
- 3.11.217.24.11 Schedule K, Line 14r - Other foreign tax information
- 3.11.217.24.12 Schedule K, Line 16d - Distributions
- 3.11.217.24.13 Schedule K, Line 17d - Other items and amounts
- 3.11.217.24.14 Schedule K, Line 18 - Income/loss reconciliation
- 3.11.217.25 Schedule L - Balance Sheets per Books
- 3.11.217.26 Schedule M-1 and Schedule M-2
- 3.11.217.26.1 Schedule M-1 - Reconciliation of Income (Loss)
- 3.11.217.26.2 Schedule M-2 - Analysis of Accumulated Adjustments Account
- 3.11.217.27 Schedule N (Form 1120) - Foreign Operations of U.S. Corporations
- 3.11.217.27.1 Schedule N (Form 1120), Line 1a - Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs)
- 3.11.217.27.2 Schedule N (Form 1120), Line 2 - Number of Forms 8865
- 3.11.217.27.3 Schedule N (Form 1120), Line 3 - Form 8865 Question
- 3.11.217.27.4 Schedule N (Form 1120), Lines 4a and 4b - Form 5471, Controlled Foreign Corporation
- 3.11.217.27.5 Schedule N (Form 1120), Line 5 - Form 3520 Question
- 3.11.217.27.6 Schedule N (Form 1120), Line 6b - Foreign Country Code
- 3.11.217.27.7 Schedule N (Form 1120), Line 7a - Form 8873 Question
- 3.11.217.27.8 Schedule N (Form 1120), Line 7b - Number of Forms 8873
- 3.11.217.27.9 Schedule N (Form 1120), Line 7c - Total Extraterritorial Income Exclusion
- 3.11.217.27.10 Schedule N (Form 1120), Line 8 - Statement of Specified Foreign Financial Assets
- 3.11.217.28 Form 8825 - Rental Real Estate Income and Expenses of a Partnership or an S Corporation
- 3.11.217.29 Form 8873 - Extraterritorial Income Exclusion
- 3.11.217.29.1 Form 8873, Line 1 - Section 942(a) (3) Election
- 3.11.217.29.2 Form 8873, Line 2 - Extraterritorial Income Exclusion in Lieu of Election
- 3.11.217.29.3 Form 8873, Line 3 - Domestication Election
- 3.11.217.30 Schedule D (Form 1120-S) - Capital Gains and Losses and Built-in Gains
- 3.11.217.31 Form 4797 - Sales of Business Property
- 3.11.217.32 Form 8949 - Sales and Other Dispositions of Capital Assets
- 3.11.217.33 Form 8996 - Qualified Opportunity Fund
- 3.11.217.34 Form 1125-A - Cost of Goods Sold (Formerly Form 1120-S, Page 2, Schedule A)
- 3.11.217.35 Form 4136 - Credit for Federal Tax Paid on Fuels
- 3.11.217.36 Form 8913 - Credit for Federal Telephone Excise Tax Paid Only Tax Return
- 3.11.217.37 Form 8941 - Credit for Small Employer Health Insurance Premiums
- 3.11.217.38 Form 5884-B - New Hire Retention Credit
- 3.11.217.39 Form 3800 - General Business Credit
- 3.11.217.40 Form 6252 - Installment Sale Income
- 3.11.217.41 Form 8997 - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments
- 3.11.217.42 Form 8936, Schedule A- Clean Vehicle Credit Amount (202301 and later)
- 3.11.217.43 Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties
- 3.11.217.44 Schedule K-1 - Shareholder’s Share of Income, Deductions, Credits, etc.
- 3.11.217.45 Form 8938, Statement of Specified Foreign Financial Assets
- 3.11.217.46 Form 1120-S Prior Year Conversion Charts
- Exhibit 3.11.217-1 Acronyms and Abbreviations
- Exhibit 3.11.217-2 Due Date Chart
- Exhibit 3.11.217-3 Routing Guide for Attachments
- Exhibit 3.11.217-4 Form 8996 - Prior Year Conversion Chart
- Exhibit 3.11.217-5 ♦Potential Frivolous Arguments for Examination Review♦
- Exhibit 3.11.217-6 ♦Province, Foreign State and Territory Abbreviations♦
- Exhibit 3.11.217-7 ♦U.S. Possessions ZIP Codes♦
- Exhibit 3.11.217-8 ♦USPS.com Track & Confirm Record♦
- Exhibit 3.11.217-9 Form 3800 - Prior Year Revisions Comparison Chart
- 3.11.217.1 Program Scope and Objectives
Part 3. Submission Processing
Chapter 11. Returns and Documents Analysis
Section 217. Form 1120-S Corporation Income Tax Returns
3.11.217 Form 1120-S Corporation Income Tax Returns
Manual Transmittal
November 14, 2024
Purpose
(1) This transmits revised IRM 3.11.217, Returns and Documents Analysis, Form 1120-S Corporation Income Tax Returns.
Material Changes
(1) IRM 3.11.217.1(5) - Changed Paper Processing Branch to Return Processing Branch. (IPU 24U0164 issued 01-31-2024)
(2) IRM 3.11.217.1.3 - Changed to Roles and Responsibilities per the Internal Control Template.
(3) IRM 3.11.217.1.6 - Changed to Terms and Acronyms per the Internal Control Template.
(4) IRM 3.11.217.1.7(1) - Added additional resources.
(5) IRM 3.11.217.2.1(2) - Changed Paper Processing Branch to Return Processing Branch. (IPU 24U0164 issued 01-31-2024)
(6) IRM 3.11.217.2.2(1) - Changed the IRM reference for IRM 1.11.2, Internal Management Documents System, Internal Revenue Manual (IRM) Process, from 1.11.2.2.4 to 1.11.2.2.3. (IPU 24U0563 issued 04-24-2024)
(7) IRM 3.11.217.2.3(1) - Updated definition and added link per IRM review feedback and email.
(8) IRM 3.11.217.2.11(2) - Updated IRM references per SERP Feedback # 18595. (IPU 24U0449 issued 03-27-2024)
(9) IRM 3.11.217.2.12(2)(4) - Added verbiage to indicate all subsequent form revisions per CD feedback.
(10) IRM 3.11.217.3(2) - Added instructional paragraphs and renumbered remaining paragraph per CD feedback.
(11) IRM 3.11.217.3.5(1)c - Deleted paragraph and renumbered to clarify letters (IPU 24U0978 issued 09-16-2024).
(12) IRM 3.11.217.3.6.1(2)c - Updated subsection with text in the note and deleted the note per Chief Counsel feedback.
(13) IRM 3.11.217.3.7(2) - Updated the wording per Chief Counsel feedback.
(14) IRM 3.11.217.3.7(3) - Added cross references per Chief Counsel feedback.
(15) IRM 3.11.217.3.7(3) - Updated Statute exception process for BMF per MOU signed by Submission Processing and Accounts Management. (IPU 24U0179 issued 02-01-2024)
(16) IRM 3.11.217.3.8.2(10) - Added Exception per CD feedback.
(17) Removed subsection 3.11.217.3.12 per Chief Counsel feedback.
(18) IRM 3.11.217.5.5(2) - Updated Note in box 4 per CD feedback.
(19) IRM 3.11.217.5.5(2) - Clarified TC 014 procedures with "Pull the return for research/input of TC 014 by the Code and Edit Research Clerk". Added a Note to clarify the street address as a location address and the P.O. Box as the mailing address. (IPU 24U0078 issued 01-11-2024)
(20) IRM 3.11.217.5.6(3) - Updated verbiage in note in the table per CD feedback.
(21) IRM 3.11.217.5.6(2) - Clarified TC 014 procedures with "Pull the return for research/input of TC 014 by the Code and Edit Research Clerk". Added a Note to clarify the street address as a location address and the P.O. Box as the mailing address. (IPU 24U0078 issued 01-11-2024)
(22) IRM 3.11.217.8(4) - Updated If/Then table per SERP Feedback #16753. (IPU 24U0179 issued 02-01-2024)
(23) IRM 3.11.217.13(3) - Removed reference to obsolete form.
(24) IRM 3.11.217.13.6(3)(4)(5) - Removed Form 8693 and updated LIHTC reported area per Chief Counsel feedback.
(25) IRM 3.11.217.13.7(3) - Added clarification per CD feedback.
(26) Removed subsection 3.11.217.14.12 per Chief Counsel Feedback.
(27) IRM 3.11.217.14.22(1) - Removed Form 8693 as obsolete per Chief Counsel.
(28) IRM 3.11.217.15.1(1) - Added new forms per UWR 982654.
(29) IRM 3.11.217.17.14 (4) - Deleted instruction to correspond for consistency. (IPU 24U0510 issued 04-11-2024)
(30) IRM 3.11.217.17.17(1) - Updated line number in the table to reflect current form version.
(31) IRM 3.11.217.17.17(1) - Updated the first "then" box, line 20 to line 21 per SERP Feedback 18347. (IPU 24U0436 issued 03-20-2024)
(32) IRM 3.11.217.18(2) - Updated prior year line numbers. (IPU 24U0078 issued 01-11-2024)
(33) Removed subsection 3.11.217.18.9 per Chief Counsel feedback.
(34) IRM 3.11.217.19(1) - Added clarification to the sixth bullet per CD feedback.
(35) IRM 3.11.217.24.8(1) - Added the correct letter to select.
(36) IRM 3.11.217.35(1) - Updated line number per form revision.
(37) IRM 3.11.217.39(3) - Deleted paragraph 3 as the instructions are no longer valid.
(38) IRM 3.11.217.39(3) - Corrected table input. (IPU 24U0078 issued 01-11-2024)
(39) IRM 3.11.217.39(3) - Removed paragraph 3 and renumbered remaining paragraphs and added new transcription lines to the table per UWR 982654.
(40) IRM 3.11.217.39(6) - Added link to prior year(s) revision comparison chart.
(41) IRM 3.11.217.43 - Added new subsection per UWR 982654 dated June 7, 2024.
(42) IRM 3.11.217.44(2) - Updated the tax year in the second bullet and corrected the line number in the ninth bullet per SERP Feedback 18348. (IPU 24U0436 issued 03-20-2024)
(43) IRM 3.11.217.45(4)f - Removed references to 2020 revisions per SERP Feedback #18258. (IPU 24U0436 issued 03-20-2024)
(44) IRM 3.11.217.46(1) - Added comparison chart for Form 3800 prior year revision(s).
(45) IRM 3.11.217.46(1) - Entered missing lines in conversion chart per SERP Feedback 16623. (IPU 24U0150 issued 01-29-2024)
(46) IRM 3.11.217.46(1) - Updated title of the First Prior Year Chart per SERP Feedback #16754. (IPU 24U0179 issued 02-01-2024)
(47) IRM 3.11.217.46(1) - Updated lines in the 2020-2018 and 2017 prior year conversion charts per SERP Feedback 18362. (IPU 24U0436 issued 03-20-2024)
(48) IRM 3.11.217.46(1) - Updated line numbers in prior year conversion charts per SERP Feedback #18346. (IPU 24U0436 issued 03-20-2024)
(49) Exhibit 3.11.217-1 - Terms/Definitions/Acronyms Table - Added Taxpayer Services (TS) and a Note about Wage and Investment (W&I) changing to Taxpayer Services. Removed Wage and Investment information. (IPU 24U0563 issued 04-24-2024)
(50) Exhibit 3.11.217-3 - Updated instructions to the second column of the table for Form 8283.
(51) Exhibit 3.11.217-3 - Updated IRM references in the second row of the IRC 965 column and the line numbers in the second and third bullets under Form 2290 row per SERP Feedback # 18593. (IPU 24U0449 issued 03-27-2024)
(52) Exhibit 3.11.217-3 - Consolidated Form 965 Schedules per CD feedback.
(53) Exhibit 3.11.217-9 - Added Form 3800 - Prior Year Revisions Comparison Chart.
(54) IRM 3.11.217 revised throughout to update organizational title Wage and Investment (W&I) to Taxpayer Services (TS). (IPU 24U0563 issued 04-24-2024)
(55) IRM 3.11.217 revised throughout to update tax year from 2023 to 2024.
(56) Minor editorial changes have been made throughout this IRM (e.g., line number updates, spelling, punctuation, links, etc.) Other significant changes are shown above.
(57) Revised the IRM, where necessary, for the following types of editorial changes:
-
Plain language, simpler words
-
Spelling, grammar, and formatting
-
IRM references, citations, and links
-
Form titles
-
IRM graphics and alternative text
Effect on Other Documents
IRM 3.11.217, Returns and Documents Analysis, Form 1120-S Corporation Income Tax Returns, dated November 4, 2023, effective January 1, 2025, is superseded. The following IRM Procedural Updates (IPUs), issued from January 11, 2024 through September 16, 2024 have been incorporated into this IRM: 24U0078, 24U0150, 24U0164, 24U0179, 24U0436, 24U0449, 24U0510, 24U0563 and 24U0978.Audience
Taxpayer Services (TS) Submission Processing Code and Edit (C&E) personnel are the intended audience for this IRM.Effective Date
(01-01-2025)James L Fish
Director, Submission Processing
Taxpayer Services Division
-
This subsection has instructions for Form 1120-S, U.S. Income Tax Return for an S Corporation. Form 1120-S is used to report the income, gains, losses, deductions, credits, etc., of a domestic corporation or other entity for any tax year covered by an election to be an S Corporation.
-
Purpose: This subsection gives instructions for Document Perfection Operation (DPO) Code and Edit (C&E) for coding and editing (perfecting) returns and other documents.
-
Audience: These procedures apply to Taxpayer Services (TS) Submission Processing (SP) Code and Edit (C&E) personnel:
-
Supervisory Tax Technician
-
Lead Tax Technician
-
Tax Examining Technician
-
Supervisory Clerk
-
Lead Clerk
-
Clerk
-
-
Policy Owner: Director, Submission Processing.
-
Program Owner: Return Processing Branch, Business Master File (BMF) Section.
-
Primary Stakeholders: Other areas that may be affected by these procedures include (but are not limited to):
-
Accounts Management (AM)
-
Chief Counsel
-
Compliance
-
Information Technology (IT) Programmers
-
Large Business and International (LB&I)
-
Modernized Electronic Filing (MeF) or Modernized e-file (MeF)
-
Small Business Self-Employed (SBSE)
-
Statistics of Income (SOI)
-
Submission Processing (SP)
-
Tax Exempt and Government Entities (TEGE)
-
Taxpayer Advocate Service (TAS)
-
-
Document Perfection codes and edits (perfects) returns and documents for input to Master File (MF) through the Integrated Submission and Remittance Processing System (ISRP) and the Service Center Recognition Image Processing System (SCRIPS).
-
Document Perfection forwards documents and attachments not related to the processing of the returns to the function responsible for handling.
-
Code and Edit does not mathematically verify or check the validity of returns and other documents being processed unless otherwise specified in the applicable section.
-
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)
-
-
Policy Statements for Submission Processing are contained in IRM 1.2.1, Servicewide Policies and Authorities, Servicewide Policy Statements.
-
The Campus Director monitors operational performance for the Submission Processing campus.
-
The Operations Manager monitors operational performance for their operation.
-
The Team Manager/Lead conducts performance monitoring and ensures employees have the tools to perform their duties.
-
Team employees follow the instructions contained in this IRM and maintain updated IRM procedures.
-
Program Goals: Make sure documents are code and edit ready for transcription.
-
Program Reports: The Batch Block Tracking System (BBTS) captures and stores a vast amount of data which can be used in performance monitoring and production projections.
-
Program Effectiveness: The program goals are measured by using the following tools:
-
Embedded Quality Submission Processing (EQSP)
-
Balanced Measures
-
Managerial Reviews
-
-
Annual Review: The processes outlined in this IRM must be reviewed annually to make sure accurate and promote consistent tax administration.
-
Quality Review conducts a statistical valid sample size review of completed work to make sure IRM guidelines are followed.
-
The table below lists Interpretation Words and their definitions.
Interpretation Words
Word Definition Example of using a word that is open to interpretation Fair Provide accurate and professional service to all persons without regard to personal bias. Per the Taxpayer Bill of Rights (TBOR), taxpayers have the right to expect a fair and just tax system which gives taxpayers the opportunity to have their facts and circumstances considered when it might affect their underlying liabilities, ability to pay, or ability to give information timely. Significant Entry Any entry other than zero or blank. Place Form 8941, Credit for Small Employer Health Insurance Premiums, in sequence order if significant entries are present. Timely Coming early or at the right time. Taxpayers have the right to receive help from the Taxpayer Advocate Service (TAS) if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through normal channels. -
See Exhibit 3.11.217-1, Acronyms and Abbreviations, for a list of commonly used acronyms and abbreviations.
-
The following resources will help in performing the work as outlined in this IRM.
-
Servicewide Electronic Research Program (SERP)
-
Integrated Data Retrieval System (IDRS)
-
Instructor’s Corner for Submission Processing
-
Integrated Automation Technologies (IAT)
-
IRM 3.12.217, Error Resolution, Error Resolution Instructions for Form 1120-S
-
IRM 3.24.16, ISRP System - Corporation Income Tax Returns
-
-
The purpose of this subsection is to give instructions for general required processing actions on Form 1120-S, U.S. Income Tax Return for an S Corporation, to eliminate repetition of the same instructions in different subsections.
-
In case of a conflict of instruction between this general subsection and the subsequent specific subsection, the specific subsection will govern.
-
This IRM can’t address every possibility that occurs while perfecting returns or documents. Take taxpayer intent into consideration. Refer issues not addressed in this IRM to the Subject Matter Expert (SME), lead or manager to determine the corrective action.
-
The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Code and Edit (C&E) processing IRMs.
-
Ogden, Kansas City, and Return Processing Branch, BMF Code and Edit and Error Resolution System (ERS) identified and developed topics for BMF Consistency.
-
A ♦ (diamond) before and after the subsection title shows BMF Consistency subsections.
-
Text in normal print is the common processes for BMF returns. The text in BOLD print is form specific and applies to this IRM only.
-
When procedures deviate from the IRM, submit IRM deviations in writing following instructions from IRM 1.11.2.2.3, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.
-
The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate, that helps taxpayers and protects taxpayer rights. TAS offers free help to taxpayers when a tax problem is causing a financial difficulty, when they have tried and been unable to resolve their issue with the IRS, or when they believe an IRS system, process, or procedure just is not working as it must. TAS strives to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.
-
TAS uses Form 12412, Operations Assistance Request (OAR), to start the OAR process of referring a case to the Taxpayer Services (TS) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19, Taxpayer Advocate Service, Taxpayer Advocate Case Procedures, Advocating With Operations Assistance Requests (OARs).
-
Refer taxpayers to TAS when the contact meets TAS criteria, or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps cannot be taken to resolve the taxpayer's issue the same day. See IRM 21.1.3.18 , Taxpayer Advocate Service (TAS) Guidelines.
-
The definition of "same day resolution" is within 24 hours. The following two situations meet the definition of "same day resolution" :
-
The issue can be resolved within 24 hours.
-
The IRS takes steps within 24 hours to resolve the taxpayer’s issue.
-
-
When making a TAS referral, use Form 911, and forward to TAS following your local procedures.
-
For more information, see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, and IRM 13.1.7.4 , Exceptions to Taxpayer Advocate Service Criteria, for information on cases that TAS will no longer accept.
-
The National Taxpayer Advocate reached agreements with the Commissioners or Chiefs of the Taxpayer Services (TS) Division, Small Business/Self Employed (SBSE) Division, Tax Exempt Government Entities (TEGE), Criminal Investigation (CI), Independent Office of Appeals, and Large Business and International (LB&I), that outline the procedures and responsibilities for processing Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs).
-
The SLAs are found at https://irsgov.sharepoint.com/sites/TAS/SitePages/SLA.aspx
-
BMF Identity (ID) Theft is increasing. If a case is found with attachments or correspondence showing the taxpayer is a victim of "ID Theft" , give the entire case to the manager/lead.
-
The manager/lead expedites the case to the Planning and Analysis (P&A) staff for referral to one of the Submission Processing (SP) BMF ID Theft liaisons. The taxpayer must show they are a victim of "ID Theft" ; do not send cases subject to Criminal Investigation (CI), Examination (Exam), or Fraud review.
-
Effective January 1, 2017, Computer Condition Code "E" will be edited on Form 1120-S (any year) by the BMF ID Theft Liaison to identify a potential identity theft filing. See IRM 3.11.217.14.3, CCC "E" - Potential Identity Theft Filing, for more information.
-
Criminal Investigation (CI) investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC include willful effort to evade or defeat the income tax. Criminal tax violations also include the willful failure to collect or pay over tax and false claims for refunds based on bogus return information.
-
If CI stamped the return, do not send for further CI action.
-
For returns with refund claims ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, do the following:
Criminal Investigation (CI) Referral
Refund Claim Ogden and Kansas City ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ -
Make a copy of the first two pages of the return along with any page of the return that appears suspicious
-
Attach Form 4227, Intra-SC Reject or Routing Slip, to the copy.
-
Route the copy to Ogden, Mail Stop 9001, Criminal Investigation (CI).
-
Edit an action trail "Copy to CI" , or "CI Referral" , or similar language in the lower left corner going vertically up the side of the return.
-
Edit Action Code 341 on the return. See IRM 3.11.217.3.11, Refund Returns 45 Day Jeopardy and High Dollar Refunds.
-
Continue processing the return.
-
-
Because of the repetitive nature of the Code and Edit (C&E) function, C&E Tax Examining Technicians often recognize income tax return data that is outside of the norm for data found on similar returns for each income tax return type. If C&E finds return characteristics not meeting Audit Code or Exam referral criteria it considered suspicious, CI is available to review the referral.
-
If you find a suspicious return, do the following:
-
Make a copy of the first two pages of the return along with any page of the return that appears suspicious.
-
Attach Form 4227, Intra-SC Reject or Routing Slip, to the copy.
-
Route the copy as shown in the table below.
-
Edit an action trail "Copy to CI" , or "CI Referral" , or similar language in the lower left corner going vertically up the side of the return.
-
Continue processing the return.
-
-
If the return fits other criteria (for example Frivolous Argument), take proper action.
-
The primary goal in identifying tax returns for Examination (Exam) is to promote the highest degree of voluntary compliance. Exam gives support and helps Submission Processing (SP) with any questionable return found during processing. Exam has a vast multitude of programs and tolerance criteria already found in several IRM sections and subsections. SP can refer any questionable return to Exam, unless prohibited by instructions currently found in several IRMs.
-
Edit marks are edited on the return for transcription to the Automated Data Processing (ADP) System through Integrated Submission and Remittance Processing (ISRP) System. Enter edit marks in brown, red, orange, purple, or green pencil or pen.
-
Only edit items on the return that are for transcription except where specific instructions require editing of a non-transcribed item. Leave lines blank if the entry would be a zero amount unless otherwise instructed.
-
Do not obliterate, alter, or erase the original entry on a return when deleting or correcting an entry. Always exercise care to make sure that the original entry remains legible. Perfected entries provide a legible "edit trail" for anyone who will work with the return later.
-
Do not re-edit edit marks entered by other areas, such as Collections, Entity or Accounts Management, except to place the marks in the correct area or perfect for legibility.
-
Photocopied Returns - Re-edit or underline any valid, black edit marks. See IRM 3.11.217.3.4.3, Correspondence Imaging Inventory (CII) Returns, and IRM 3.11.217.3.8, Re-Entry Document Procedures.
-
For a description of specific edit marks, see the table below:
Edit Marks
-
Businesses use frivolous arguments for expressing dissatisfaction with the substance, form or administration of the tax laws by trying to illegally avoid or reduce tax liabilities. See IRM 25.25.10, Frivolous Return Program, and Exhibit 3.11.217-5, Potential Frivolous Arguments for Examination Review, for a list of recognized frivolous arguments made by businesses.
-
Review the return to decide whether it appears to be a frivolous return.
Frivolous Arguments
If Then The return meets any of the conditions shown as a frivolous return. See Exhibit 3.11.217-5, Potential Frivolous Arguments for Examination Review. Remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Program (FRP) for review. Examination has selected the return as frivolous, shown by an Action Code 331 and a Form 4227, Intra-SC Reject or Routing Slip, with the remarks, "Refer to Exam FRP for audit after processing" ), but sends the return for processing. Continue processing the return using procedures in IRM 3.11.217, Form 1120-S Corporation Income Tax Returns. However, do not circle or void the Action Code showing a frivolous return. -
Do not consider the following returns as frivolous, unless there is other evidence of a frivolous argument:
-
Returns that have only zeros, blanks, or no entries.
-
Returns showing "None" , "Not Liable" , etc.
-
-
For returns completed in other than U.S. currency, process as filed. However, if corresponding for missing/incomplete item(s), include in the letter to resubmit in U.S. currency.
-
Remove returns marked as "Protective Claim" , "Protective Refund" , "Protective Claim for Refund" , or similar statement from the batch and route to Accounts Management. Notate "Protective Claim" in the remarks box of Form 4227, Intra-SC Reject or Routing Slip.
-
Section 14103 of the Tax Cuts and Jobs Act (TCJA) of 2017 overhauled Section 965 of the Internal Revenue Code. As a result of Section 965, now titled "Treatment of deferred foreign income upon transition to participation exemption system of taxation" , US shareholders must pay a transition tax on the untaxed foreign earnings of certain specified foreign corporations as if those earnings had been repatriated to the United States.
-
Identify a Section 965 return when the tax period is 201712 through 202012 and any of the following are present:
-
"Section 965" or "965 Tax" (or similar language) notated on the return, schedules, attachments, or, statements.
-
IRC 965 Transition Tax Statement (or similar 965 statement) is attached.
-
Form 965, Inclusion of Deferred Foreign Income Upon Transition to Participation Exemption System, is attached.
-
Form 965, Schedule A, U.S. Shareholder’s Section 965(a) Inclusion Amount, is attached.
-
Form 965, Schedule B, Deferred Foreign Income Corporation’s Earnings and Profits (E&P), is attached.
-
Form 965, Schedule C, U.S. Shareholder’s Aggregate Foreign Earnings and Profits Deficit, is attached.
-
Form 965, Schedule D, U.S. Shareholder’s Aggregate Foreign Cash Position, is attached.
-
Form 965, Schedule E, U.S. Shareholder’s Aggregate Foreign Cash Position - Detail, is attached.
-
Form 965, Schedule F, Foreign Taxes Deemed Paid by Domestic Corporation, is attached.
-
Form 965, Schedule G, Foreign Taxes Deemed Paid by Domestic Corporation for U.S. Shareholder Tax Year Ending in 2017, is attached.
-
Form 965, Schedule H, Disallowance of Foreign Tax Credit and Amounts Reported on Forms 1116 and 1118, is attached. Before 2019, the title was Form 965, Schedule H, Amounts Reported on Forms 1116 and 1118 and Disallowed Foreign Taxes.
-
Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, is attached.
-
Form 1120-S, Schedule K, Line 10, Other income (loss), shows a significant entry with the notation "Section 965" or similar language (202012 - 201712 form revisions). See IRM 3.11.217.24.3, Schedule K, Line 10 – Other income (loss), for more information.
-
Form 1120-S, Schedule K, Line 12d, Other deductions, shows a significant entry with the notation "Section 965" or similar language (202012 - 201712 form revisions). See IRM 3.11.217.24.4, Schedule K, Line 12d, Other deductions, for more information.
-
Form 1120-S, Schedule K, Line 14r, Other foreign tax information, shows a significant entry with the notation "Section 965" or similar language (202012 - 201712 form revisions). See IRM 3.11.217.24.11, Schedule K, Line 14r - other foreign tax information, for more information.
-
Form 1120-S, Schedule K, Line 17d, Other items and amounts, shows a significant entry with the notation "Section 965" or similar language. See IRM 3.11.217.24.13, Schedule K, Line 17d - Other items and amounts, for more information.
-
-
When a return is identified as a Section 965 return, edit as follows:
-
Completely edit the return.
-
Edit CCC "J" . See IRM 3.11.217.14.7, CCC "J" - Section 965 Tax.
-
Edit Action Code 460 (Management Suspense). See IRM 3.11.217.3.1, Action Codes.
-
Do not correspond on the return. ERS will take care of any correspondence needed.
-
-
Under the Inflation Reduction Act (IRA) of 2022 and CHIPS and Science Act of 2022, the S-Corporation can elect to:
-
Take certain credits as an "Elective or Deemed Payment" .
-
Transfer a credit to another taxpayer.
-
Claim the credit as a General Business Credit.
-
-
For tax periods 202201 - 202212, identify an "Elective or Deemed Payment Election" when the taxpayer writes "IRA22DPE" on Form 1120-S line 23d dotted portion (prior year form revisions),or line 24d (year 2023 revision and subsequent) or on an attachment.
-
When a return is identified with an "Elective or Deemed Payment Election" , do the following:
-
Completely edit the return.
-
Edit RPC "J" .
-
Place a flag at the top of the return and attach the "IRA22 DPE/TRE Reminder" sheet to the return.
-
Give the return to the lead.
-
The lead will have the returns rebatched with "DPE" in the batch ID.
-
-
For tax periods 202201 - 202212, identify a "Credit Transfer" when the taxpayer writes "IRA22TRE" on Form 1120-S line 23d (prior year form revisions),or line 24d (year 2023 and subsequent) dotted portion or on an attachment. When found, do the following:
-
Completely edit the return.
-
Edit RPC "K" .
-
Place a flag at the top of the return and attach the "IRA22 DPE/TRE Reminder" sheet to the return.
-
Give the return to the lead.
-
The lead will have the returns rebatched with "TRE" in the batch ID.
-
-
The Document Perfection tax examiner will have the first opportunity to identify a return requiring correspondence, research, or other action to make the return processable. An Action Code is edited to identify these unprocessable returns.
-
A return must have specific items before it is considered processable. Perfect all documents to the extent possible from schedules and other attachments. The specific items needed are:
-
An Employer Identification Number (EIN),
-
A legible name (for name control),
-
Valid tax period,
-
Legible tax data, if tax liability is shown, and
-
A signature attesting to the perjury statement Jurat shown the document.
-
-
Conditions which make a return unprocessable are:
-
Name so illegible or incomplete that the name control cannot be decided.
-
The EIN or Taxpayer Identification Number (TIN) is other than nine numeric digits and cannot be perfected from information on the return or attachments.
-
The document has two or more different EIN's.
-
Taxpayer has stated that he/she has combined liability for more than one tax period or more than one type of tax.
-
Tax data entries are so incomplete, illegible or contradictory that the tax liability cannot be decided.
-
The return is mis-blocked.
-
The return is unsigned.
-
The return has only entity data and no other statements, attachments from the taxpayer.
-
Any condition set forth as unprocessable in the sections and subsections on processing specific documents.
-
-
If a return has no entity data, or the signature on the return is illegible and the alpha letter of the last name cannot be decided, and the only entries are money amounts, then give the return to the manager.
-
Returns that cannot be perfected from schedules and other attachments and necessary data was not gotten through research, follow the guidance to reject the return. If you cannot correspond or send the return back to the taxpayer because of illegible entity data, consider the return unprocessable. See IRM 3.11.217.3.3(3) to determine the action needed for unnumbered and numbered returns.
-
If a 1120-S is received with a second Form 1120-S attached and the second return has the same EIN, Tax Period, and money amounts:
-
Leave the second return attached to the first.
-
"X" the first page of the second return and treat as an attachment to the first return.
-
-
The tax examiner decides the kind of action required and assigns an Action Code to the return which will force it to the Error Resolution System (ERS) (on-line correction system). The code indicates whether correspondence, research, or other action is needed.
-
Action Codes are used to show whether correspondence, research, or other action is needed. The Action Code sets the suspense period for the return and places the return in the workable or unworkable suspense inventory.
-
When necessary, assign a three-digit Action Code.
-
Edit the Action Code in the bottom left margin of the return.
-
Assign Action Codes in the following priority:
-
Action Code 310 (Statute Control)
-
Action Code 320 (Entity Control)
-
Action Code 4XX
-
Action Code 6XX
-
Action Code 3XX
-
Action Code 2XX (Correspondence)
-
-
Use the following table if more than one Action Code is needed on Form 1120-S, :
Action Codes
If Then Action Codes include 211, 215, 225, or 226 and Action Code 341, -
Edit the Action Code 211, 215, 225, or 226 on the Form 1120-S, U.S. Income Tax Return for an S Corporation.
-
Edit Action Code 341 on the Form 4227, Intra-SC Reject or Routing Slip.
Action Codes have the same priority, -
Edit the Action Code with the shorter suspense period on the Form 1120-S.
-
Edit the second Action Code on the Form 4227, Intra-SC Reject or Routing Slip.
-
See IRM 3.11.217.3.1(7) for suspense periods.
Action Codes have different priority, -
Edit the Action Code with the higher priority on the Form 1120-S.
-
Edit the second Action Code on the Form 4227, Intra-SC Reject or Routing Slip.
-
See Figure 3.11.217-1, Example of Editing Return When More Than One Action Code is Needed.
-
-
Continue perfecting the return after editing the Action Codes.
-
Valid Action Codes are listed below:
Action Codes
Action Code Description Additional Information Workday Suspense Period 211 First Taxpayer Correspondence -
Return is illegible, incomplete, or contradictory and therefore unprocessable.
-
The taxpayer notates on the return or attachment that they are reporting tax for more than one tax period or for more than one type of tax.
40 212 Second Correspondence 25 215 International Correspondence -
Return is illegible, incomplete, or contradictory and therefore unprocessable.
-
The taxpayer notates on the return or attachment that they are reporting tax for more than one tax period or for more than one type of tax.
45 225 Taxpayer Correspondence (Signature Only) Unsigned returns (only issue for correspondence). 40 226 International Correspondence (Signature Only) Unsigned foreign returns (only issue for correspondence). 40 310 Statute Control 10 320 Entity Control 10 331 Frivolous Review 3 341 Manual Refund 10 342 Credit Verification 10 343 Other Accounting 10 347 Form 2553, Election by a Small Business Corporation, attached to Form 1120-S, U.S. Income Tax Return for an S Corporation, and/or taxpayer indicates "Revenue Procedure (Rev. Proc.) 2013-30" (effective September 3, 2013) or "Rev. Proc. 2007-62" on Form 1120-S. 20 352 Name Research 3 360 Other-in-House Research 10 370 Examination - Prompt Assessment - Form 4810, Request for Prompt Assessment Under Internal Revenue Code Section 6501(d) 10 420 Management Suspense A 5 440 Management Suspense 15 450 Management Suspense 20 460 Management Suspense Section 965, Treatment of Deferred Foreign Income upon Transition to Participation Exemption System of Taxation (Tax Period 201712 through 202012). 25 480 Early Filed Suspense Early filed return. 150 610 Renumber - Non-Remittance -
Mis-batched return (e.g., Form 1065 is found in a Form 1120-S batch of work).
0 611 Renumber - Remittance -
Mis-batched return (e.g., Form 1065 is found in a Form 1120-S batch of work).
0 650 International -
An International return, processed in Ogden Submission Processing Campus (OSPC).
0 Reminder:
Beginning with tax returns for periods ending 12-31-2007 and later, Form 2553, Election by a Small Business Corporation, may be filed as an attachment to Form 1120-S requesting to be considered an S Corporation. Edit Action Code (AC) 347 when a Form 2553 is attached to Form 1120-S or taxpayer shows "Revenue Procedure (Rev. Proc.) 2013-30" or "Rev. Proc. 2007-62" on Form 1120-S.
-
-
For more information and applicable Action Codes, see IRM 3.12.38.3.4, Error Resolution System (ERS) Action Codes, and the exhibit in IRM 3.12.38-1, Action Codes.
-
A tax return is an Ogden Submission Processing Campus (OSPC) only return if at least one of the following conditions exists:
-
The tax return has a foreign address.
-
There is a refund credit claimed because of U.S. income tax paid or withheld at source because of the Foreign Investors in Real Property Tax Act whether or not Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests, is attached.
-
-
Kansas City Submission Processing Campus (KCSPC) - If the Form 1120-S, U.S. Income Tax Return for an S Corporation, is an "OSPC only" return:
-
Discontinue perfection of the return.
-
Prepare Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform the taxpayer the IRS sent the return to Ogden Submission Processing Campus (OSPC).
-
Edit an Action Trail (e.g., "86C Sent" or similar language) in the lower left corner going vertically up the side of the return.
-
-
If the Form 1120-S is other than an "OSPC only" return, perfect the return.
-
Examine schedules and other attachments for necessary information and edit the return as needed for processing.
-
If perfection is not possible, perfect to the extent possible and proceed as set forth in (3) below.
-
-
Action to Secure Perfection:
-
Where shown, prepare Form 4227, Intra-SC Reject or Routing Slip, indicating the reason for rejecting the document and that the taxpayer needs to resubmit for processing when it is perfected.
-
Attach the Form 4227, Intra-SC Reject or Routing Slip, below the entity area.
-
If the tax return is not numbered, withdraw it from processing and forward it to the proper area.
-
If the tax return is numbered, edit the proper Action Code in the bottom left margin of the return and leave it in the block.
-
-
There are two types of correspondence that Code and Edit may encounter:
-
Correspondence received from taxpayers, and
-
Correspondence issued to taxpayers.
-
-
Correspondence is all written communications from a taxpayer or a taxpayer’s representative, excluding tax returns, whether solicited or unsolicited. This includes:
-
Written communications in response to the IRS requests for information or data.
-
Written communications, including annotated notice responses that provide more information or dispute a notice.
-
A telephone call that results in a written referral or research (Form e-4442, Inquiry Referral).
-
-
The key to identifying taxpayer’s correspondence is to ask the following questions:
-
Is the taxpayer waiting for a response from the IRS?
-
Is the taxpayer waiting for the IRS to take action?
-
Is the taxpayer asking a question?
-
-
Issue correspondence to resolve any conditions causing the return to be unworkable or unprocessable.
Exception:
Section 965 Returns - Do not correspond on the return. ERS will take care of any correspondence needed. Notate "K-1 Missing" (or similar language) in the lower left margin (Action Trail) of the return, if correspondence is needed for missing Schedules K-1. See IRM 3.11.217.2.11, Section 965 Returns (201712 through 202012), for more information.
-
If the return is incomplete and does not appear to be a return meant for filing or is a conduit for providing information (e.g., indicates "payment only" ), give the return to the lead. The lead must determine the correct course of action. The lead researches for a Transaction Code (TC) 150 and any other information necessary to determine if the return will continue processing, is an amended return, or must be routed to another function. An incomplete return could include any of the following:
-
A one-page return, with or without a signature.
-
Incomplete returns indicating "Payment Only" .
-
Incomplete returns indicating they have previously e-filed.
-
-
Examine the return for all unprocessable conditions before initiating correspondence.
Correspondence
If And Then The return needs correspondence, Requires a response, -
Complete an approved Correspondence Action Sheet indicating the letter number (e.g., 86C, 118C, 319C, etc.), Master File Tax (MFT), and the proper paragraphs.
-
Attach the approved Correspondence Action Sheet to the front of the return below the entity area.
-
Edit Action Code 211 (First Correspondence) or 215 (International Correspondence) on the return.
-
Finish editing the return and leave in the batch.
The return needs correspondence, Does not require a response, -
Complete an approved Correspondence Action Sheet indicating the letter number (e.g., 86C, 118C, 319C, etc.), Master File Tax (MFT), and the proper paragraphs.
-
Photocopy first page of return and attach the approved Correspondence Action Sheet below the entity area on the front of the return copy. Be sure the name and address clearly show above the approved Correspondence Action Sheet.
-
Forward the copy to the Correspondence Area.
-
Edit an Action Trail (e.g.,1382C Sent or similar language) in the lower left corner going vertically up the side of the return.
-
Finish editing the return and leave in the batch.
-
-
Correspondence Imaging Inventory (CII) is an inventory system for scanning all Accounts Management (AM) receipts into digital images and working the cases from those images.
-
"CII" returns show a "CII Image - Do not correspond for Signature" stamp below the signature line or a "CII" annotation on the front of the return.
-
Verify all edit marks and make sure placement is correct on a "CII" return.
-
Follow the instructions below for processing "CII" returns.
Correspondence Imaging Inventory (CII) Return
If And Then The "CII" return has a Form 13596, Reprocessing Returns, attached, The return is incomplete (e.g., missing signature, schedules, or forms), -
Do not correspond.
-
Remove the return from the batch and route to Accounts Management (AM).
-
If the return comes back from AM with the information still incomplete, send the return to AM again to secure all the missing information. Indicate "Additional information needed to process incomplete CII return," or similar language on Form 4227 (or other proper routing slip).
The "CII" return has a Form 13596, Reprocessing Returns, attached and the return is incomplete (e.g., missing signature, schedules, or forms), The return shows correspondence was sent (e.g., CCC "3" is edited on the return), Do not route the return to Accounts Management (AM). Continue processing the return. The "CII" return does not have a Form 13596, Reprocessing Returns, attached, The return is incomplete (e.g., missing signature, schedules, or forms), Follow normal correspondence procedures. -
-
The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98), Section 3705(a), gives identification requirements for all IRS employees working tax-related matters.
-
All IRS employees who communicate by telephone, or face-to-face, or any other method of correspondence with taxpayers or their personal representatives, on tax-related matters must give (at minimum) the following information:
-
Telephone Contact - Their title (e.g., Mr., Mrs., Ms., Miss), last name, and badge identification (ID Card) number. Toll-free employees may also give their location for identification purposes. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.
-
Face-to-Face Contact - Their title (e.g., Mr., Mrs., Ms., Miss), give as proper during the conversation, their last name, and badge identification (ID Card) number.
-
Correspondence (sent to the taxpayer and authorized representatives) - A telephone number that taxpayers can call for answers to questions. In addition, manually generated correspondence must have the employee’s title (e.g., Mr., Mrs., Ms., Miss), last name, Integrated Data Retrieval System (IDRS) number, and letter system number, which are systemically generated by IDRS. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.
-
Correspondex letters - Specific employee name and telephone number if the employee initiating the correspondence is in the best position to respond to any questions the taxpayer may have or if the taxpayer is being asked to give more case-related information. If the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.
-
-
When a taxpayer requests to speak with a specific employee who previously worked their inquiry or request, or complains about the level of service previously given, make every effort to resolve the taxpayer's inquiry. If unable to resolve the issue, refer the inquiry using established procedures to the manager.
-
Secretaries, receptionists, or other people who answer the telephone in functional offices need to identify themselves and will give their badge identification (ID Card) number only if they are answering telephones which are routinely used to give tax or account information.
-
It is not necessary to repeat the badge identification (ID Card) number on a subsequent contact, when the nature of an employee's work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either telephone or in-person) their badge identification (ID Card) number on the first contact.
-
Taxpayers may send tax return information via fax as part of return perfection even when submitting a signature. In circumstances where contact with the taxpayer was made and documented, faxed signatures are acceptable.
-
Contact the taxpayer by telephone or correspondence. Follow local procedures to decide which method of contact to use.
-
Indicate the fax paragraph on the approved Correspondence Action Sheet to inform the taxpayer of the fax options.
-
Use the following resources to make sure you are speaking with the taxpayer or authorized representative before disclosing any tax information:
-
IRM 21.1.3.2.3, Required Taxpayer Authentication
-
IRM 21.1.3.2.4, Additional Taxpayer Authentication
-
-
Before leaving any messages on a taxpayer's answering machine, review:
-
IRM 10.5.1.6.7.2, Answering Machine or Voicemail
-
IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance
-
-
Listed below are letters which are provided by Headquarters for Submission Processing Campus use in corresponding for items listed in this IRM. It is expected that tax examiners or their supervisors (or delegates) will have access to and be familiar with the Submission Processing Center Correspondex for selection of proper letters. The list is not all-inclusive.
-
Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office - Letter referring taxpayer inquiry/forms to another office.
-
Letter 118C, Corporate Return Incomplete for Processing: Form 1120, Form 1120 Series, Form 1120-S - Letter requesting missing schedules or documents.
-
Letter 319C, Return Covers Other Than 12-Month Accounting Period - Letter advising the taxpayer that the IRS can’t process return because it shows an improper tax period, or a period of more than 12 months, or a period less than 12 months without an explanation.
-
Letter 1382C, Penalty Removal Request Incomplete - Letter requesting taxpayer to resubmit request for penalty relief after receiving notice of penalty assessment.
-
Letter 3463C, Missing Information Request to Process Business Returns - Letter requesting missing information to process business returns.
-
-
Compliance functions (Collections and Examination) secure returns from the taxpayer and prepare returns if the taxpayer does not provide them.
-
Compliance notates:
-
Prepared tax returns with "6020(b)" or "SFR" (Substitute for Return).
-
Secured tax returns with "TC 59X" or "ICS" or "Process as Original" with a Form 13133, Expedite Processing Cycle, attached with the "Delinquent Return" box checked.
-
-
When the taxpayer does not file a required return, IRC 6020(b) is the authority for the IRS to prepare the return.
-
These returns are identified by the notation: "PREPARED AND SIGNED UNDER AUTHORITY OF SECTION 6020(b) OF THE INTERNAL REVENUE CODE" , which is located in the center bottom of Page 1 of the return.
-
Returns must have an IRS Received Date. If missing, follow the normal procedures for editing the IRS Received Date. See IRM 3.11.217.7, Received Date.
-
Compliance Function representatives must sign returns. If not signed, route to Compliance using Form 4227, Intra-SC Reject or Routing Slip.
-
Do not edit CCC "D" if the Return Due Date is after July 30, 1996 (without regard to extensions) even if the Compliance Function representative notates "DO NOT ASSESS FAILURE TO PAY PENALTY" .
-
Do not correspond with the taxpayer for unprocessable conditions. If the return is unprocessable, edit CCC "3" and continue processing.
-
Edit CCC "W" if the IRS Received Date is more than two years and nine months after the Return Due Date. Do not send the return to Statute Control. See IRM 3.11.217.14.15, CCC "W" = "Cleared by Statute" and IRM 3.11.217.3.7, Statute Returns.
-
-
These returns are identified by the notations: "TC 59X" or "ICS" .
-
Do not edit CCC "G" on these returns.
-
Use approved Correspondence Action Sheet to correspond for conditions that are unprocessable (e.g., missing signatures, missing schedules, etc.).
-
Edit CCC "W" if the received date is more than two years and nine months after the Return Due Date. Do not send to Statute Control. See IRM 3.11.217.3.7, Statute Returns.
-
-
These returns are identified by the notation "SFR" or "SUBSTITUTE FOR RETURN" on Page 1.
-
Return must have a received date. If no received date is present, follow the normal procedures for editing the received date.
-
Do not correspond with the taxpayer for unprocessable conditions. If the return is unprocessable, edit CCC "3" and continue processing the return.
-
If Form 13133, Expedite Processing Cycle, is attached, edit the Computer Condition Codes that are checked on the form.
-
Edit CCC "W" if the received date is more than two years and nine months after the Return Due Date. Do not send to Statute Control. See IRM 3.11.217.3.7, Statute Returns.
-
-
These returns are identified by the notation "Process as Original" on Page 1 of the return with a Form 13133, Expedite Processing Cycle, attached with the "Delinquent Return" box checked.
-
Do not edit CCC "G" on these returns.
-
Use approved Correspondence Action Sheet to correspond for conditions that are unprocessable (e.g., missing signatures, missing schedules, etc.).
-
Edit the Computer Condition Codes that are checked on Form 13133.
-
Edit CCC "W" if the received date is more than two years and nine months after the Return Due Date. Do not send to Statute Control. See IRM 3.11.217.3.7, Statute Returns.
-
-
Any return with a received date that is two years and nine months or more after the Return Due Date is a potential Statute Control return.
-
Route all Statute returns to the Statute Control Unit daily or more often if needed, unless any of the conditions below are present.
-
If any of the conditions listed below are present, do not route to Statute Control Unit for clearance. Instead, edit CCC "W" and continue processing.
-
Compliance IRC 6020(b) returns. See IRM 3.11.217.3.6.1, IRC 6020(b) Prepared by Collections.
-
Secured by Examination/Collections, secured by TEGE, secured by TEGE Employee Plan (EP) Exam.
-
Returns identified by the notation "Process as Original" on Page 1 of the return with Form 13133, Expedite Processing Cycle, attached with the "Delinquent Return" box checked. See IRM 3.11.217.3.6.4, Examination Secured.
-
Returns with Transaction Code (TC) 59X or Integrated Collection System "ICS" notated on the face of the return.
-
Returns showing "substitute returns prepared by Examination (SFR)" in top margin of the return. See IRM 3.11.217.3.6.3, Examination Prepared.
-
Returns with a stamp indicating a previous clearance by Statute Control within the last 90 days.
-
Return is a 2020 and prior year original. Due to the COVID-19 pandemic and subsequent Submission Processing (SP) and Accounts Management (AM) site closures, SP and AM developed procedures to bypass AM statute clearance and be processed. In addition, any 2020 and prior year returns previously cleared by AM statute will not be returned by SP to AM to be cleared again if the 90-calendar day statute stamp has expired.
-
-
If a return has any of the following computer paragraphs (CPs) or letters attached, do not route to Statute Control Unit for clearance. Edit CCC "W" if the return needs processing. See Exhibit 3.11.217-3, Routing Guide for Attachments, for more information.
-
CP 259, Master File Generated 1st TDI Notice.
-
CP 959, Master File Generated 1st TDI Notice (Spanish version).
-
CP 518, Final Notice - Return Delinquency.
-
Letter 112C, Payment/Overpayment/Credit Applied; No Record of Return Filed.
-
Letter 282C, Return Not Received: Copy Requested/Received.
-
Letter 2255C, Delinquent Return (Forms 720, 1041, 1065, 1120).
-
Letter 2284C, Delinquent Return (Form 940, 941, 942, 943).
-
-
If a return has a Form 12412, Operations Assistance Request (OAR), from TAS and is a potential statute control return but is not stamped "Cleared by Statute" , give it to lead. The lead contacts the TAS employee listed on the OAR for rejection of the return and sends it back to TAS for clearance by the Statute Control Unit.
-
Statute returns are unprocessable until cleared by Statute Control.
Statute Returns
If Then The return is numbered, -
Edit Action Code 310 on the return.
-
Leave the return in the batch and continue processing the return.
The return is unnumbered, -
Do not continue processing the return.
-
Pull the return from the batch.
-
Attach Form 4227, Intra-SC Reject or Routing Slip, and route to Statute Control Unit.
-
-
Edit CCC "W" if the Statute Control Unit stamps or shows clearance on the front of the return. Exhibit 3.11.217-2, Due Date Chart.
-
Statute stamps "No Statute Issue" or shows clearance on the front of the return. Follow the chart below to determine if a CCC "W" is needed:
Statute Returns
If And Then The return received date is two years and nine months or more after the Return Due Date, The return is stamped, "No Statute Issue" or a similar statement indicating there is no statute issue (e.g., "Statute N/A" ), Edit CCC "W" . The return received date is less than two years and nine months from the Return Due Date, The return is stamped, "No Statute Issue" or a similar statement indicating there is no statute issue (e.g., "Statute N/A" ), Do not edit CCC "W" .
-
Reprocess a return posted to the wrong account or module to post it to the correct account module.
-
Some re-entry returns will have originally been filed electronically through Modernized E-file (MeF). These returns may be identified by the presence of MeF printouts in lieu of an actual return.Do not correspond for missing signatures on these documents.
-
Each re-entry return must have a Form 3893, Re-Entry Document Control, or Form 13596, Reprocessing Returns, attached.
-
Form 3893 is used to re-input documents that have not posted to an account or module.
-
Form 13596 is used to reprocess documents to the correct account or module that had previously posted to the wrong account or module.
-
-
Always leave the Form 3893 or Form 13596 on the front of the return. It must remain as a permanent part of the document.
-
Examine Form 3893 or Form 13596 to determine the action needed to make the return processable.
-
Form 3893, Re-Entry Document Control, is used to re-input a return that has not posted to an account or module.
-
If more than one return is in the batch and only the top Form 3893 has an entry in Box 1 (Alpha/Numeric block control no.), edit all returns using current processing instructions and keep all returns clipped together.
-
Circle CCC "G" if present.
-
Do not edit CCC "G" on Amended returns.
-
Do not send Letter 1382C, Penalty Removal Request Incomplete, if a request for penalty relief is attached.
-
If the return is not edited according to current processing instructions, circle any Action Codes, Computer Condition Codes, and any other edit marks that are no longer applicable. Re-edit according to current processing instructions.
-
If the return is edited according to current processing instructions, make sure that the information from Form 3893 is edited to the return.
-
Examine returns that have any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.
-
A received date must be present on all Re-input returns.
-
When more information is needed to make the return processable, prepare approved Correspondence Action Sheet or Form 4227, Intra-SC Reject or Routing Slip, for the proper action (e.g., correspondence, research, etc.).
-
When perfection is not possible, edit Action Code 640 on the return and attach Form 4227, Intra-SC Reject or Routing Slip, noting "Perfection not Possible" and leave in batch.
-
Form 13596, Reprocessing Returns, is used to reprocess a return to the correct account or module that had previously posted to the wrong account or module.
-
Circle CCC "G" if present.
-
Do not edit CCC "G" on Amended returns.
-
Do not send Letter 1382C, Penalty Removal Request Incomplete, if a request for penalty relief is attached.
-
If the return is not edited according to current processing instructions, circle any Action Codes, Computer Condition Codes, and any other edit marks that are no longer applicable. Re-edit according to current processing instructions.
Caution:
If you receive a Form 1120-S, U.S. Income Tax Return for an S Corporation, converted from Form 1120, U.S. Corporation Income Tax Return, make sure that the following items are present: EIN, Name Control, NAICS, Received Date, Audit Code "4" , tax period (prior year returns), CCC "3" (if applicable for "No Replies" ), and CCC "F" (if applicable for Final returns). If not, then edit the needed items. Do not detach Form 1120. See IRM 3.11.217.4.2, Issuing Correspondence, for more information.
-
If the return is edited according to current processing instructions, make sure that the information from Form 13596 is edited on the return.
Form 13596
Form 13596 Action Taken Taxpayer Identification Number (TIN) correction, Edit the correct TIN on return. Tax period correction, Edit the correct tax period ending on the return. Reasonable cause, Edit proper Computer Condition Code(s). -
Edit CCC "R" if the Failure to File "FTF" box is checked.
-
Edit CCC "D" if the Failure to Pay "FTP" box is checked.
-
-
Examine returns that have any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.
-
A received date must be present on all reprocessed returns.
-
Circle any green rocker and edit marks that show a receipt of remittance.
-
When more information is needed to make the return processable, prepare approved Correspondence Action Sheet or Form 4227, Intra-SC Reject or Routing Slip, for the proper action (e.g., correspondence, research, etc.).
-
A return is considered amended based on the following:
-
The Amended box is checked.
-
Words such as "Supplemental" , "Corrected" , "Superseded" , or "Additional" are present.
-
Any indication from the taxpayer that a previous return was filed.
-
-
Examine the return for attachments:
-
Do not separate any related attachments submitted to explain the reason for the Amended Return. Accounts Management may use the information.
-
Detach any unrelated documents and route them to the correct function using Form 4227, Intra-SC Reject or Routing Slip, and edit the Action Trail on the return.
-
-
Follow the instructions in the chart below when there is an indication of an amended return:
Amended Returns
If Then Compliance Services entered "TC 59X" or "ICS" was edited on the return by Compliance Services, Do not edit CCC "G" . Process the return as an original. Statute Control stamped the return "Delinquent Original Cleared for Processing" , Do not edit CCC "G" . Process the return as an original. Form 3893 or Form 13596 is attached, Do not edit CCC "G" . See IRM 3.11.217.3.8.1, Form 3893 - Re-Entry Document Control, and IRM 3.11.217.3.8.2, Form 13596 - Reprocessing Returns. None of the above are present, Edit CCC "G" . No other codes may be used with CCC "G" . -
The following data must be edited on all Amended returns:
-
Name Control - See IRM 3.11.217.5.4, Entity Perfection - Name Control.
-
Employer Identification Number (EIN) - See IRM 3.11.217.5.3, Entity Perfection - Employer Identification Number (EIN).
-
Tax Period - See IRM 3.11.217.6, Tax Period.
-
CCC "G" - See Exception above.
-
Received Date - See IRM 3.11.217.7, Received Date.
-
Signature - See IRM 3.11.217.19, Signature.
-
-
Detach Schedules K-1 for current year (TY2024), two preceding years (TY2023 and TY2022), and future Schedules K-1. See IRM 3.0.101, Schedule K-1 Processing, for complete instructions to edit and process Schedules K-1.
-
A "Prompt Assessment" , Internal Revenue Code (IRC) Section 6501 is requested, either in the form of a letter or on Form 4810, Request for Prompt Assessment Under Internal Revenue Code Section 6501(d). A "Prompt Determination" is requested under Section 505 of the U.S. Bankruptcy Code.
Prompt Assessment or Prompt Determination - Form 4810
If And Then A Prompt Assessment or Prompt Determination request is not attached to a tax return, Forward the Prompt Assessment/Prompt Determination request to Examination. A Prompt Assessment or Prompt Determination is attached to a tax return, A Transaction Code (TC) 150 has not posted for that return, Process the return and forward the Prompt Assessment/Prompt Determination request to Examination with a copy of the tax return. A Prompt Assessment or Prompt Determination is attached to a tax return, A TC 150 has posted for that return, Route the return and Prompt Assessment/Prompt Determination request to Examination.
-
Document Perfection identifies refunds in jeopardy and requests manual refunds.
Refund Returns
If Then A refund return is batched in a non-refund batch, -
Pull the return from the non-refund batch using local procedures.
-
Code and edit the return as completely as possible.
The processing date is more than 20 days after the received date or the Return Due Date (whichever is later) and the refund amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, -
Unnumbered Returns:
-
Pull the return from the batch.
-
Code and edit the return as completely as possible.
-
Edit Action Code 341. See Figure 3.11.217-2, Example of Editing Action Code 341.
-
Give the return to the manager for expedited processing.
-
-
Numbered Returns:
-
Code and edit the return as completely as possible.
-
Edit Action Code 341 and leave in the batch.
-
The refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ -
Unnumbered Returns:
-
Pull the return from the batch.
-
Code and edit the return as completely as possible.
-
Edit Action Code 341.
-
Make a copy of the first two pages of the return along with any page of the return that appears suspicious for Criminal Investigation (CI). See IRM 3.11.217.2.5, Criminal Investigation (CI) Referral.
-
Edit an action trail "Copy to CI" or "CI Referral" , or similar language in the lower left corner going vertically up the side of the return.
-
Expedite processing.
-
-
Numbered Returns:
-
Code and edit the return as completely as possible.
-
Edit Action Code 341.
-
Attach Form 4227, Intra-SC Reject or Routing Slip, to the return, edit Action Code 341 on Form 4227, and leave in batch.
-
Make a copy of the first two pages of the return along with any page of the return that appears suspicious for Criminal Investigation (CI). See IRM 3.11.217.2.5, Criminal Investigation (CI) Referral.
-
Edit an action trail "Copy to CI" or "CI Referral" , or similar language in the lower left corner going vertically up the side of the return.
-
-
-
This subsection provides instructions for editing general tax data.
-
All prior year returns must be reformatted to current year format. Refer to Code and Edit BMF Job Aids for specific year coding.
-
If the return is on other than current form format (either a prior year or non-standard form) and the transcription lines cannot be numbered to agree with the current year return:
-
Edit all available transcribed tax data items to the tax data part of a blank current year form.
-
Place a large "X" across the tax data entries of the prior year (or non-standard) form.
-
Staple the forms together, attaching the dummied form (current format) on top so that ISRP can enter the entity data from the prior year (or non-standard) form.
-
-
If a taxpayer filed Form 1120 and the Entity Control Unpostable Unit has determined the taxpayer has a valid Small Business Election (Form 2553, Election by a Small Business Corporation) on file, Rejects function will convert Form 1120 to a Form 1120-S, U.S. Income Tax Return for an S Corporation. No action is required of Document Perfection. Do not detach Form 1120.
-
If you receive a Form 1120-S converted from Form 1120 and the Form 13596, Reprocessing Returns, is attached for reprocessing, see IRM 3.11.217.3.8.2, Form 13596 - Reprocessing Returns, for more information.
-
When the return serves only as a transmittal for statements, schedules, and other attachments, or is otherwise incomplete, analyze the supporting documents and edit the missing entries on the form itself.
-
Examine attachments and edit the information to proper transcription lines of both the income and deduction sections.
-
Edit the income section if Line 6 is the only entry in the income section.
-
Edit the deduction section if Line 22 (line 21 for prior year form revisions) is the only entry in the deduction section.
-
Edit the income or deduction sections if blank and there is an indication the income or deduction items are included on an attachment (e.g., a notation such as "See attached" , "See Schedule F" , "Statement attached" , etc.).
-
-
Secured Delinquent Returns are returns secured by compliance personnel. If information is missing from one of these returns, do not send the return back to the taxpayer; correspond using approved Correspondence Action Sheet.
-
Document Perfection is not required to edit a vertical line, 00, dash, or decimal point to show dollars and cents.
Editing Dollars and Cents
If Then The taxpayer has entered money amounts showing dollars and cents separated by a decimal point, No editing is required. The taxpayer has entered dollars only where dollars only must be entered, No editing is required. The taxpayer has entered dollars only where dollars and cents must be entered, No editing is required.
-
Edit negative entries as follows:
Negative Entries
If Then Brackets "[ ]" or parentheses "( )" are pre-printed on the form, No editing is required. The taxpayer shows a negative amount with brackets "[ ]" or parentheses "( )" or a minus "–" sign, No editing is required. Editing a negative amount to a transcription line (e.g., computing a line entry, entering a missing entry, etc.), Bracket "[ ]" (or "( )" ) the negative amount.
-
This subsection provides instructions related to taxpayer identification for Form 1120-S, U.S. Income Tax Return for an S Corporation.
-
The entity of a tax return identifies the taxpayer on the Business Master File (BMF). The entity area of the return contains the following:
-
Employer Identification Number (EIN)
-
Name
-
"In-care-of" Name
-
Address
-
-
If the Form 1120-S, U.S. Income Tax Return for an S Corporation, shows bankruptcy (e.g., shows "RECEIVER" , "TRUSTEE" , or "DEBTOR IN POSSESSION" ) in the entity area or on an attachment, route to Entity Control. Follow local procedures using Form 13934, Entity Document/C&E Merge Transmittal.
-
Completely edit the return except the name control prior to routing to Entity Control.
-
The EIN is a nine-digit number (XX-XXXXXXX) assigned to identify the taxpayer.
-
Determine the EIN as follows:
-
Employer Identification Number (EIN)
If And Then EIN is missing, You can determine the correct EIN from the attachments or schedules, Edit the EIN to the proper location. The EIN is either a Practitioner Tax Identification Number (PTIN) or Individual Taxpayer Identification Number (ITIN), Unnumbered/Numbered, -
Unnumbered
-
Remove return from batch.
-
Route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal, for EIN assignment.
-
-
Numbered
-
Edit Action Code 320.
-
Leave return in batch.
-
Multiple EINs are present, Unnumbered/Numbered, -
Unnumbered
-
Remove return from batch.
-
Route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal, for EIN assignment.
-
-
Numbered
-
Edit Action Code 320.
-
Leave return in batch.
-
The EIN contains any of the following conditions and can’t be determined from attachments or schedules: -
Illegible
-
Missing
-
Other than nine digits
-
All zeros
-
All nines
Unnumbered/Numbered, -
Unnumbered
-
Circle out all illegible EINs, zeros, or nines.
-
Research IDRS.
-
If found, edit to the proper location.
-
If not found, route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.
-
-
Numbered
-
Circle out all illegible EINs, zeros, or nines.
-
Edit Action Code 320.
-
Leave return in batch.
-
"Pending" , "applied for" , etc., is shown in the EIN area, Unnumbered/Numbered, -
Unnumbered
-
Research Integrated Data Retrieval System (IDRS).
-
If found, edit to the proper location.
-
If not found, route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.
-
-
Numbered
-
Edit Action Code 320.
-
Leave return in batch.
-
-
-
-
The Name Control consists of four characters or less.
-
Valid characters are alpha, numeric, ampersand (&), hyphen (-), and blank. However, blanks are only valid in the last three positions.
-
Disregard the word "The" in the Name Control only when followed by more than one word.
-
-
See Job Aid Document 7071-A, Name Control Job Aid - For Use Outside the Entity Area, to determine the Name Control.
-
If Box H(2) "Name Change" is checked, route the return to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.
-
Edit the Name Control as follows:
-
Name Control
If And Then Able to determine the Name Control, Underline the Name Control. See Figure 3.11.217-3, Example of Editing a Name Control. Unable to determine the Name Control, Unnumbered/Numbered, -
Unnumbered
-
Research Integrated Data Retrieval System (IDRS).
-
If found, edit to the proper location.
-
If not found, route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.
-
-
Numbered
-
Edit Action Code 352 (Name Research).
-
Leave return in batch.
-
-
-
-
An "in-care-of" name can be identified by the words "in care of" or the symbols "c/o" or "%" (percent).
-
Make sure the "in-care-of" name is in the proper location.
"In-Care-Of" Name
If Then The "in-care-of" name is located on the street address line preceding the street address, No editing is required. The "in-care-of" name is located above the first name line or below the street address, Arrow the "in-care-of" name so it appears below the first name line and above the street address. The "in-care-of" name is shown on an attachment, -
Edit the "in-care-of" name above the street address beginning with the "%" or "c/o" in the first position.
-
Continue editing the return.
The street address for the "in-care-of" name is different from the street address of the S Corporation, -
Arrow the "in-care-of" street address below the "in-care-of" name or edit the "in-care-of" street address below the "in-care-of" name if located on an attachment.
-
Circle the S Corporation's street address.
-
Notate TC 014 in the upper left margin.
-
Pull the return for research/input of TC 014 by the Code and Edit Research Clerk.
-
-
Determine a change in the in-care-of name by any of the following:
-
A check mark in Box H(2) "Name Change" , or
-
A check mark in Box H(3) "Address Change" , or
-
Taxpayer edits or added to the "in-care-of" ” name (e.g., original "in-care-of" name crossed out, new name added, etc.)
"In-Care-Of" Name
If Then An "in-care-of" name is changed but there is no sign of an address change, -
Edit the "in-care-of" name as shown above.
-
Continue editing the return.
An "in-care-of" name is present and Box H(3) "Address Change" is checked (or there is a sign of an address change), -
Edit the "in-care-of" name as shown above.
-
Correct the address.
-
Continue editing the return.
-
-
Perfect the address when the mailing address (Street or P.O. Box) is not easily identified.
-
A business may have two addresses. One is the mailing address, and the other is the location address or physical location of the business.
-
Perfect the address as follows:
Domestic Addresses
If And Then An attachment shows the address has been changed, Edit the new address in the entity section of the return. See Figure 3.11.217-4, Example of a Return With a Change of Address. Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, All apply: -
Mailing address information is the same on Form 1120-S,
-
Form 8822 or Form 8822-B, Line 7, does not list a location address,
-
No entry on Form 8822-B, Lines 8 or 9,
Take no action. Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, Any applies: -
Mailing address information is different,
-
Form 8822 or Form 8822-B, Line 7, lists a location address,
-
Form 8822-B, Lines 8 or 9, have an entry,
Detach Form 8822 or Form 8822-B and route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal. Both a P.O. Box and a street address are shown, -
Notate Transaction Code "TC 014" in the upper left margin. See Figure 3.11.217-5, Example of a Return With a P.O. Box and Street Address.
-
Pull the return for research/input of TC 014 by the Code and Edit Research Clerk.
Two street addresses are shown, -
Underline the second street address.
-
Notate the "TC 014" in the upper left margin.
-
Pull the return for research/input of TC 014 by the Code and Edit Research Clerk.
One street address is shown, The taxpayer changed the address to a P.O. Box, The city and state are not shown on the return, but are shown on an attachment, Edit the city and state in the entity section of the return. The ZIP Code is missing or illegible, Is not available from the return or attachments, See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries to determine the ZIP Code. Only the first three digits of the ZIP Code can be determined, Edit "01" for the fourth and fifth digits. Box H(3) "Change of Address" is checked, An "in-care-of" name is present, -
Edit the "%" (percent sign) or "c/o" to the left of the "in-care-of name" (in the first position) followed by the correct name.
-
Correct the address.
-
Continue editing the return.
It is necessary to edit the street address, See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, for current Address/Street Abbreviations. The address contains information other than a street address or P.O. Box, Do not perfect. ISRP will enter the complete address. -
-
The U.S. Postal Service established new address requirements for Army Post Office (APO), Diplomatic Post Office (DPO), and Fleet Post Office (FPO) addresses. If the old address appears, convert to the new state code abbreviation based on the ZIP Code (e.g., APO New York, NY 091XX would be converted to APO AE 091XX). Consider APO/DPO/FPO addresses as domestic addresses. Refer to APO/DPO/FPO Conversion Chart below:
-
A foreign (international) address is any address that is not in the 50 states or the District of Columbia.
-
Consider returns with Army Post Office (APO), Diplomatic Post Office (DPO), and Fleet Post Office (FPO) addresses as domestic addresses. See IRM 3.11.217.5.6, Entity Perfection - Domestic Addresses.
-
Route returns with a foreign address to Ogden Submission Processing Campus (OSPC) for processing. Prepare Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform the taxpayer that the IRS sent the return to Ogden. Edit an Action Trail (e.g., "86C Sent" or similar language) in the lower left corner going vertically up the side of the return.
-
Consider returns with addresses in the following U.S. Possessions/Territories as foreign for processing purposes. Edit the same way as domestic addresses.
-
Edit a two-character alpha code for the Possession/Territory name.
-
A ZIP Code must be present for U.S. Possessions/Territories. Edit the correct ZIP Code if one is not provided. See Exhibit 3.11.217-7, U.S. Possessions ZIP Codes.
-
-
All other foreign addresses are edited the same as a domestic address with the following exceptions:
-
Ensure the foreign country is the last entry in the address.
-
Circle the foreign country and edit the Country Code preceded by a "/" and followed by "/$" (e.g., "/GM/$" is edited for Germany). See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, for acceptable Foreign Country Codes.
-
Edit a unique country code for returns filed with an address in Canada. See IRM 3.11.217.5.7.1, Country Code - Canada.
-
If the foreign address is from Australia, Brazil, Canada, Cuba, Italy, Mexico, or The Netherlands, check if the address has a province, state, or territory:
Note:
There may be other countries with provinces, states, and territories not listed above, see Coding and Editing BMF Tax Returns, Foreign Addresses Job Aid (Number 2324-002) for more information.
Province, State or Territory
If Then A province, state, or territory name is present, -
Circle the province, state, or territory name.
-
Enter the correct abbreviation. See Exhibit 3.11.217-6, Province, Foreign State and Territory Abbreviations.
A province, state, or territory name is not present, Continue editing the return. A province, state, or territory is shown in abbreviated format, Continue editing the return. -
-
A ZIP Code or state is not required on a foreign address. Foreign addresses use a postal code that is entered before the city or foreign country and is part of the address.
-
-
To help Compliance with workload assignment, returns filed with an address in Canada will be edited using a unique Country Code based on the province/territory.
Country Code - Canada
If Then The foreign address contains a Canadian Province/Territory name, or abbreviation shown in the table below, -
See table below to make sure the correct Canadian Province/Territory is present or edited to the return.
-
Circle the country name.
-
Edit the correct Country Code based on the province/territory preceded by a "/" and followed by a "/$" as the last entry in the address.
The foreign address does not contain a Canadian Province/Territory name, or abbreviation shown in the table below, -
Circle the country name.
-
Edit the Country Code "/CA/$" as the last entry in the address.
Canadian Province/Territory Abbreviations, Postal Codes, and Canadian Country Codes Table
Canadian Province/Territory Province Abbreviation Postal Code Beginning Country Code Alberta AB T XA British Columbia BC V XB Manitoba MB R XM New Brunswick NB E XN Newfoundland and Labrador NL A XL Northwest Territories NT X XT Nova Scotia NS B XS Nunavut NU X XV Ontario ON K, L, M, N, or P XO Prince Edward Island PE C XP Quebec QC G, H, or J XQ Saskatchewan SK S XW Yukon YT Y XY -
-
The rest of the foreign address is edited using procedures in IRM 3.11.217.5.6, Entity Perfection - Domestic Addresses.
-
This subsection provides instructions for editing the tax period.
-
Form 1120-S, U.S. Income Tax Return for an S Corporation, must have a tax period.
Note:
If the Form 1120-S has Schedule K-1s attached, the gusset can only contain the same tax year. If no Schedule K-1s are attached to the Form 1120-S, the gussets can have mixed tax years. For fiscal year filers, use the tax period ending from the Schedule K-1 to determine which tax year the taxpayer is filing for.
-
Edit the tax period to the right of the title area of Form 1120-S in YYMM format following the instructions below.
Tax Period
If Then The return is for the current processing calendar year (e.g., 202412), Do not edit the tax period. The return is for a prior year, Edit the tax period to the right of the form title in YYMM format. The taxpayer has notated a tax period other than the preprinted year on the return, Edit the tax period to the right of the form title in YYMM format based on the taxpayer’s indication, per paragraph (3). The tax period is missing, incomplete, or illegible, -
Review the return or attachments for the correct period.
-
If found, edit the tax period to the right of the form title in YYMM format.
-
If unable to determine the tax period after researching, process the return for the year currently being processed.
-
-
A tax period will end on the last day of a month. (Ignore a minor discrepancy such as October 30 instead of October 31). The exceptions are a 52-53-week filer, and final or short period returns. The table below identifies examples of tax periods.
-
Tax periods reported under the 52-53-week rule must end not more than six days before, and not 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.
Tax Period
If Then The tax period ending is not more than three days after the beginning of the month, Edit the previous month (e.g., October 3, use the numeric designation for September, YY09). The tax period ending is not more than six days before the end of the month, Edit the month shown on the return (e.g., October 25, use the numeric designation for October, YY10). Tax period ending is more than six days before the end of the month or three days after the beginning of the month, and is not a Final, Correspond to determine the correct tax period ending. -
If the tax period is for more than 12 months or 53 weeks, correspond.
-
On a "Final" return, if the month and year is equal to or later than the received date month and year (future return) or the taxpayer has not shown in which month the business ended, edit the tax period to be one month before the received date. See Figure 3.11.217-7, Example of Editing an Early Filed Final Return.
-
On a "Final" return, if the received date is after the short period due date but on or before the regular full tax period due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, edit CCC "R" and CCC "F" . See IRM 3.11.217.6.3(2), Early Filed Return, and Exhibit 3.11.217-2, Due Date Chart, for more information. See Figure 3.11.217-8, Example of Editing CCC “F” and CCC “R” on Form 1120-S.
-
The separate short period return of a subsidiary which became affiliated with a "consolidated" group may end on the day preceding such affiliation. As a practical matter, do not question the ending date on any change-of-accounting period return.
-
Check all tax periods for the Statute of Limitation (two years and nine months from the normal due date of the return). For statute instruction, see IRM 3.11.217.3.7, Statute Returns.
-
Edit the Tax Period Beginning to the left of the title area of Form 1120-S, U.S. Income Tax Return for an S Corporation, in MMDDYY format following the instructions below: (See Figure 3.11.217-9, Example of Editing the Tax Period Beginning.)
Tax Period Beginning
If And Then The return is a final, initial, or a short period, Tax Period Beginning is present, Edit the Tax Period Beginning (MMDDYY). The return is a final, initial, or a short period, The day is not present in the Tax Period Beginning, Edit "01" for the day. For example, taxpayer writes May 2024, edit Tax Period Beginning as 050124. The return is a final, initial, or a short period, Tax Period Beginning is not present, No editing is required.
-
Never send an early filed return back to the taxpayer.
-
If the month of the tax period is the same or after the month of the received date, determine how early the return was filed:
Tax Period
If Then The Tax Period Ending (TPE) is equal to or later than the received date by four months or less (e.g., the received date is in April but the TPE is April, May, June, or July) and is not marked final, -
Edit Action Code 480 (Early Filed - Suspense). See Figure 3.11.217-10, Example of Early Filed Return – Editing Action Code 480 vs Action Code 211.
-
Leave return in batch.
The Tax Period Ending (TPE) is later than the received date by more than four months (e.g., the received date is in April but the TPE is in September) and it is not marked final, -
Edit Action Code 211 or 215 and attach approved Correspondence Action Sheet to request confirmation of the Tax Period Ending. See Figure 3.11.217-10, Example of Early Filed Return – Editing Action Code 480 vs Action Code 211.
-
Completely edit the return. Edit the future tax period shown by the taxpayer. Leave return in batch.
On a "Final" return, the received date is after the short period due date, but on or before the regular full tax period due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, -
Edit CCC "R" .
-
Edit CCC "F" .
-
Edit CCC “D” if the return is a Balance Due.
-
See IRM 3.11.217.6.1, Tax Period - General, for more information.
-
-
A Short Period Return is one which covers a period of less than 12 months or 52-53 weeks.
-
If the Short Period Return is marked "Final" , see instructions for editing the tax period in IRM 3.11.217.6.1, Tax Period - General.
-
If the Short Period Return is marked "Initial" , "First Return" , "New Corporation" , etc., or meets any of the identifying conditions in the instructions for "Initial Return Code" , see IRM 3.11.217.11, Initial Return Code - Page 1, Box G, Is the corporation electing to be an S corporation beginning with this tax year?
-
Process all other Short Period Returns as a "Change of Accounting Period" . In such cases, proof of entitlement to the change is required.
-
-
Use the Proof of Entitlement Table below to identify and edit proof of entitlement.
Proof of Entitlement
If And Then A statement the S Corporation is changing tax period under: -
National Office "Grant Letter" or
-
Revenue Procedure 2006-46,
Command Code BMFOLE shows a Transaction Code (TC) 053 or TC 054, Continue processing the return. See Figure 3.11.217-11, Example of a Short Period Return with Proof of Entitlement. A statement the S Corporation is changing tax period under: -
National Office "Grant Letter" or
-
Revenue Procedure 2006-46,
Command Code BMFOLE shows a TC 059, The return is unprocessable. Follow the instructions for "Short Period Returns - Editing a Disapproved Application" . See IRM 3.11.217.6.6, Short Period Returns - Editing a Disapproved Application (Form 1128). Statement referring to "S" (1120-S) Status Termination or revocation under Section 1362, or Form 1120-S, Page 1, Item H, Box 5, S Election termination or revocation is checked, Edit CCC "R" . Statement referring to Termination of Shareholders Interest under Section 1377(a)(2) and Regulations Section 1.1377-1(b), Continue processing the return. Statement referring to "S" Status Election and a National Office "Grant Letter" is attached allowing the fiscal year (other than 12/31/XX), Continue processing the return. Notation referring to: -
Section 444 or
-
Reference to Revenue Procedure 2006-46,
Command Code BMFOLE shows a Transaction Code (TC) 053, TC 054, or TC 055, Continue processing the return. Notation referring to: -
Section 444 or
-
Reference to Revenue Procedure 2006-46,
Command Code BMFOLE shows a TC 058 or TC 059, The return is unprocessable. Follow the instructions for "Short Period Returns - Editing a Disapproved Application" . See IRM 3.11.217.6.6, Short Period Returns - Editing a Disapproved Application (Form 1128). Form 1128, Application to Adopt, Change, or Retain a Tax Year, Command Code BMFOLE shows a Transaction Code (TC) 053 or TC 054, Continue processing the return. Form 1128, Application to Adopt, Change, or Retain a Tax Year, Command Code BMFOLE shows a TC 059, The return is unprocessable. Follow the instructions for Short Period Returns - Editing a Disapproved Application. See IRM 3.11.217.6.6, Short Period Returns - Editing a Disapproved Application (Form 1128). Form 1128, Application to Adopt, Change, or Retain a Tax Year, Command Code BMFOLE does not show Transaction Code (TC) 053, TC 054, or TC 059, See IRM 3.11.217.6.7, Editing Form 1128 With No Indication of Approval or Disapproval. Statement referring to Qualifying Disposition under Regulations Section 1.1368-1(g)(2)(i), Edit CCC "Y" . Statement referring to "S" Status Election and taxpayer is changing to required tax year (12/31/XX), Edit CCC "Y" . Statement the S Corporation is coming out of consolidation, Edit CCC "Y" . Statement the corporation is a qualified sub chapter S subsidiary, Edit CCC "Y" . Notation referring to: -
"Section 1398 election" (Bankruptcy Petition was filed), or
-
"Second Short Year after Section 1398 Election" ,
Edit CCC "Y" . Do not correspond. Note:
The following table is a list of transaction codes and meanings.
Transaction Code (TC)
Transaction Code (TC) Meaning 053 A TC 053 identifies a Fiscal Year Month (FYM) change from Form 1128, Application to Adopt, Change, or Retain a Tax Year, (other than Revenue Procedure 2006-46). 054 A TC 054 identifies a FYM change from Form 1128, Application to Adopt, Change, or Retain a Tax Year, or Form 2553, Election by a Small Business Corporation, approved under Revenue Procedure 2006-46. 055 A TC 055 identifies a FYM change from Form 8716, Election To Have a Tax Year Other Than a Required Tax Year. 058 A TC 058 identifies a DeniedForm 8716, Election To Have a Tax Year Other Than a Required Tax Year. 059 A TC 059 identifies a DeniedForm 1128, Application to Adopt, Change, or Retain a Tax Year. -
-
If proof of entitlement is missing or the taxpayer says on the return or an attachment that the S Corporation has filed an application but has not received a response, research IDRS using Command Code BMFOLE (or other applicable Command Code) for approval or disapproval information and proceed as follows:
Proof of Entitlement
If Then Command Code BMFOLE shows a Transaction Code (TC) 053, TC 054, or TC 055, Continue processing the return. Command Code BMFOLE shows a TC 058 or TC 059, The return is unprocessable. Follow the instructions for "Short Period Returns - Editing a Disapproved Application" . See IRM 3.11.217.6.6, Short Period Returns - Editing a Disapproved Application (Form 1128). Command Code BMFOLE does not show a TC 053, TC 054, TC 055, TC 058, or TC 059, Correspond with the taxpayer using Letter 319C, Return Covers Other Than 12-month Accounting Period.
-
If Form 1128, Application to Adopt, Change, or Retain a Tax Year, is disapproved, the return is considered unprocessable:
-
Edit Action Code 211 or 215 and correspond.
-
In the correspondence, instruct the taxpayer to file a return for the next regular full period due. Request a disposition of any remittance paid with the return or other credits which have posted to the short period module.
-
-
When a Form 1128, Application to Adopt, Change, or Retain a Tax Year, is attached with no indication of approval or disapproval and no proof of entitlement is present, research Integrated Data Retrieval System (IDRS) using Command Code BMFOLE (or other applicable Command Code) for approval or disapproval and proceed as follows:
Form 1128
If Then Command Code BMFOLE shows a Transaction Code (TC) 053 or TC 054, Continue processing the return. Command Code BMFOLE shows a TC 059, The return is unprocessable. Follow the instructions for "Short Period Returns - Editing a Disapproved Application" . See IRM 3.11.217.6.6, Short Period Returns - Editing a Disapproved Application (Form 1128). Command Code BMFOLE does not show TC 053, TC 054, or TC 059, Take the actions in (2) below. -
Form 1128, Application to Adopt, Change, or Retain a Tax Year, with neither approval nor disapproval, stop processing Form 1120-S, U.S. Income Tax Return for an S Corporation. Route Form 1120-S and Form 1128 to Entity Control as directed in the paragraphs below.
-
If Form 1128, Application to Adopt, Change, or Retain a Tax Year, is attached to a numbered return, enter Action Code 320. Attach Form 4227, Intra-SC Reject or Routing Slip, and check the box for Entity Control. Edit the Form 1120-S received date to Form 1128. Leave the return in the batch and continue processing the return.
-
If Form 1128 is attached to an unnumbered return, edit the Form 1120-S received date to Form 1128, attach Form 4227, Intra-SC Reject or Routing Slip, and route the return to Entity Control. See Figure 3.11.217-12, Example of Form 1128 Attached With No Indication of Approval or Disapproval.
-
Entity will process the Form 1128 and route the return back to Code and Edit with a Form 4227, Intra-SC Reject or Routing Slip, attached. The Form 4227 will show if the Form 1128 is approved, denied, or returned and the words "Process Return" or "Let Unpost" .
-
-
Route to Accounting for possible adjustment action any return meeting both conditions below.
-
A prepaid credit, Line 24a or Line 24b is claimed. (202301 and later)
-
The return is a short period (an initial return, a final return, or one with a change of accounting period).
-
-
Take the following action when routing these returns to Accounting:
-
Enter Action Code 342 on the return.
-
Attach Form 4227, Intra-SC Reject or Routing Slip, check the "Accounting" box and notate "Short period return with ES Credits" .
-
Continue normal processing.
-
If the return shows a refund, follow "Refund Returns" instructions in IRM 3.11.217.3.11, Refund Returns 45 Day Jeopardy and High Dollar Refunds.
-
See Figure 3.11.217-13, Example of Short Period Return With ES Credits.
-
-
The date a document is received in the Campus or an IRS Office is the date stamped as the "IRS Received Date" .
-
All Form 1120-S, U.S. Income Tax Return for an S Corporation, returns require an IRS Received Date.
-
A return is considered timely if the envelope in which the return is contained is postmarked on or before the due date.
Received Date
-
When a Form 1120-S is delinquent and the taxpayer explains the return is late due to the rejection of a timely filed electronic return, check the return for a Modernized Electronic Filing (MeF) rejection notification.
Note:
Taxpayers are instructed to notate in red in the top margin of the return REJECTED ELECTRONIC RETURN to show the timely filed return can’t be filed electronically. The notation could be anywhere on the return and is not required, but they are required to attach a copy of the MeF rejection notification in order to show they qualify for an edited Received Date.
-
If a MeF rejection notification is not attached, perfection of the received date is not necessary. If a MeF rejection notification is attached, edit the IRS Received Date in MMDDYY format as follows:
Note:
The taxpayer has 10 days to resubmit an electronically filed return after being rejected and 10 days to submit a paper return after the last rejection. The first transmission of any rejected return must have been filed before the due date of the relevant form for this rule to apply.
Received Date
If And Then The postmark date is within 10 days of the date of the rejection, Edit the IRS Received Date to be the date of the rejection. For example, postmark date is 03-22-2025 and first rejection is 03-12-2025. Change received date to 031225. The postmark date is more than 10 days after the date of the rejection, Leave the IRS Received Date as is. For example, postmark date is 03-25-2025 and first rejection is 03-12-2025. Leave the received date as is. There are two rejections, Within 10 days of one another and one is within 10 days of the postmark date, Edit the IRS Received Date to be the date of the first rejection.
For example, postmark date is 03-22-2025, the second rejection is 03-12-2025. The first rejection is 03-09-2025. Change the received date to 030925.There are two rejections with the time between the first rejection and the second rejection greater than 10 days, The second rejection is within 10 days of the postmark date, Edit the IRS Received Date to be the date of the second rejection.
For example, postmark date is 03-22-2025, the second rejection is 03-12-2025. The first rejection is 03-01-2025. Change the received date to 031225.There are two rejections, Not within 10 days of one another and second rejection not within 10 days of the postmark date, Leave the IRS Received Date as is. For example, postmark date is 03-25-2025, the second rejection is 03-12-2025. The first rejection is 03-01-2025. Leave the received date as is. -
The received date may or may not be stamped on the face of the return.
-
A valid received date stamp may consist of the following:
-
The word "Received"
-
Month (alpha or numeric)
-
Day (for example "1" or "01" )
-
Year - four digits
-
"Area Office" , Campus, Field Office, "Taxpayer Assistance Center (TAC) Site" plus the city, location, or functional area within one of these sites (e.g., Compliance Services Collection Operations (CSCO), Examination, Image Control Team (ICT). Correspondence Imaging Inventory (CII), Accounts Management (AM), etc.)
Exception:
Not all IRS offices are designated places for filing, and not all IRS employees are authorized to accept a tax return for processing. If a return contains a received date stamp from other than a Taxpayer Assistance Center (TAC), Lockbox, or the IRS campus (Compliance, Accounts Management, or Submission Processing (SP)), circle out the invalid received date and edit the correct received date according to instructions below. For example, returns received by the Taxpayer Advocate Service (TAS) or the IRS Office of Chief Counsel are not properly filed and a received date by that office is not the "IRS Received Date" .
-
-
If the received date stamp is not present or the date is illegible or invalid, edit the received date in "MMDDYY" format in the middle of Page 1 of the return. See Figure 3.11.217-15, Example of Editing the Received Date. Edit the received date according to the following priority:
-
The earliest legible postmark date (U. S. Postal Service (USPS), foreign postmark, or Private Delivery Service (PDS)) on the envelope. Rules for using the U. S. Postal Service (USPS) postmark or foreign postmark date are as follows:
Received Date
If Then An envelope is not attached, Use the postmark date stamped on the face of the return. A document was returned for insufficient postage, Use the postmark date that coincides with the correct delivery of the return. The postmark is missing, and the envelope is certified, Look for the "USPS.com Track & Confirm" record that was attached to the return (should be in front of the envelope). Use the "acceptance" date on the record to determine timeliness and follow normal editing procedures. See Exhibit 3.11.217-8, USPS.com Track & Confirm Record. If the "USPS.com Track & Confirm" record is not attached, take no action. An envelope has both a USPS and private metered postmark, Always use the USPS postmark. An envelope has a foreign and private metered postmark, Always use the foreign postmark. An envelope has two private metered postmarks, Always use the latest private metered postmark. An envelope has only one private metered postmark, Use the private metered postmark. -
Service Center Automated Mail Processing System (SCAMPS) digital Date.
-
Revenue officer's Signature Date.
-
Signature Date. (Only if within current year.)
-
Julian Date of the Document Locator Number (DLN) minus 10 days.
-
Current Date minus 10 days.
-
-
Edit the received date as follows:
Received Date
If And Then A timely received date is the only received date stamped on the return, No editing is required. Two or more dates are stamped on the return, -
Use the earliest IRS received date stamped on the return.
-
Circle all other dates (handwritten, or stamped, not needed for transcription.
-
See Figure 3.11.217-16, Example of a Multiple Valid Received Date.
A Federal return is addressed to the IRS, Delivered to a state agency, Use the postmark date as the received date. A Federal return is addressed to a State agency, Use the IRS date stamp as the received date. The only received date on the return is a Taxpayer Advocate Service (TAS) Received Date or Chief Counsel Received Date, Circle out the TAS or Chief Counsel Received Date and edit the received date according to instructions. -
-
If a return is faxed to another area of the IRS and then sent to Submission for processing, do not enter the Enterprise Electronic Fax (EEFax) Date as the IRS Received Date. Enter a received date according to normal procedures.
-
The Principal Business Activity (PBA) Code is based on the North American Industry Classification System Code (NAICS). These codes are a high priority to the IRS. It is critical data for Statistics of Income, Examination, Research, and other Service organizations.
-
The NAICS Code is a four-digit (prior year) or six-digit code on Page 1, Box B of Form 1120-S.
-
A NAICS Code is required on Form 1120-S.
-
Only one NAICS Code can be used on the return. Edit the NAICS Code as follows:
North American Industry Classification System (NAICS) Code
If Then A legible six-digit NAICS Code is shown on Page 1, Box B, No editing is required. A legible four-digit NAICS Code is shown on Page 1, Box B, No editing is required. Page 1, Box B is blank and Schedule B, Line 2a has a legible four-digits or six-digits NAICS code, Edit the NAICS code to Page 1, Box B. There is more than one NAICS Code on Page 1, Box B, Circle all but the first NAICS Code listed. Page 1, Box B is blank, illegible, has repeating numbers, or is other than four or six digits, Edit NAICS Code "999999" .
-
Edit Computer Condition Code "B" when the box on Form 1120-S, Line C, "Check if Schedule M-3 is attached" is marked or Schedule M-3 (Net Income (Loss) Reconciliation for S Corporations With Total Assets of $10 Million or More) is attached to the return.
-
The first source for this entry is Form 1120-S, Page 1, Box F, Total Assets.
-
Compare Box F amount with Schedule L, Balance Sheets per Books, Line 15, Column (d), or an equivalent entry on a schedule(s) or attachment(s).
-
If Box F and Schedule L, Balance Sheets per Books, Line 15, Column (d), differ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, use the amount on Schedule L, Line 15, Column (d). Edit the amount to Box F. Bracket if negative.
-
If Schedule L, Balance Sheets per Books, Line 15, Column (d), is blank, then compute Lines 1 through 14, Column (d), and compare it with Box F. If there is only one entry in Column (d), Lines 1 through 14, use that figure to compare to Box F.
-
If Box F is blank, enter the amount from Schedule L, Line 15, Column (d) to Box F, in dollars only. Bracket if negative.
-
If Schedule L, Balance Sheets per Books, is blank, or missing, and there is an amount in Box F, place an "X" to the left of the entry.
-
If the amount in Box F is for cents only (e.g., $.89, -$.99), place an "X" to the left of the entry.
-
Edit an Initial Return Code "2" in the margin to the right of Page 1, Box E, "DATE INCORPORATED" if any of the following conditions are met:
-
Form 1120-S, Page 1, Box E, Date incorporated, has a date which is within 12 months from the tax period ending date.
-
Page 1, Box G, "Is the corporation electing to be an S corporation beginning with this tax year?" is checked "Yes" .
-
There is a taxpayer notation of initial filing, such as, "First Return" , "New Corporation" , etc.
-
The date incorporated is within 24 months from the Tax Period Ending (or is not shown) and the taxpayer’s Balance Sheet, "Beginning of tax year" (first two columns of Schedule L, Balance Sheets per Books,) is blank or zeros (see Initial Return - 24 Month Rule Table below). See Figure 3.11.217-17, Example of Editing the Initial Return Code With 24 Month Rule.
Initial Return Code
Tax Period Ending 24 Month Cutoff Date 2512 01/01/2024 2511 12/01/2023 2510 11/01/2023 2509 10/01/2023 2508 09/01/2023 2507 08/01/2023 2506 07/01/2023 2505 06/01/2023 2504 05/01/2023 2503 04/01/2023 2502 03/01/2023 2501 02/01/2023 2412 01/01/2023 2411 12/01/2022 2410 11/01/2022 2409 10/01/2022 2408 09/01/2022 2407 08/01/2022 2406 07/01/2022 2405 06/01/2022 2404 05/01/2022 2403 04/01/2022 2402 03/01/2022 2401 02/01/2022 2312 01/01/2022 2311 12/01/2021 2310 11/01/2021 2309 10/01/2021 2308 09/01/2021 2307 08/01/2021 2306 07/01/2021 2305 06/01/2021 2304 05/01/2021 2303 04/01/2021 2302 03/01/2021 2301 02/01/2021 2212 01/01/2021 2211 12/01/2020 2210 11/01/2020 2209 10/01/2020 2208 09/01/2020 2207 08/01/2020 2206 07/01/2020 2205 06/01/2020 2204 05/01/2020 2203 04/01/2020 2202 03/01/2020 2201 02/01/2020 2112 01/01/2020 2111 12/01/2019 2110 11/01/2019 2109 10/01/2019 2108 09/01/2019 2107 08/01/2019 2106 07/01/2019 2105 06/01/2019 2104 05/01/2019 2103 04/01/2019 2102 03/01/2019 2101 02/01/2019 -
-
Follow the instructions below for editing Form 1120-S, Page 1, Line I, Number of Shareholders.
Note:
If the entry on Line I is written in a non-numeric fashion ("two" instead of "2" ), edit the numeric equivalent on Line I and circle the non-numeric characters.
Number of Shareholders
If And Then Form 1120-S, Page 1, Line I, Number of Shareholders, is zero or blank, No Schedule(s) K-1 are attached and Schedule(s) K-1 are required, -
Leave zero or blank. Do not edit Line I, Number of Shareholders
-
Correspond for the Schedules K-1. See IRM 3.11.217.44, Schedule K-1, for corresponding information.
Page 1, Line I, Number of Shareholders, is zero or blank, Schedule(s) K-1 are attached, Edit the number of Schedules K-1 to Page 1, Line I, Number of Shareholders. See Figure 3.11.217-18, Example of Editing Number of Shareholders. Page 1, Line I, Number of Shareholders, is zero or blank, No Schedule(s) K-1 are attached and correspondence is not necessary according to IRM 3.11.217.44(2), Edit a "1" to Page 1, Line I, Number of Shareholders. -
-
This subsection provides instructions for editing more Form 1120-S information.
-
Entries previously entered on the Form 3892, Corporation Edit Sheet, are edited in the left margin near Line 9 (Deductions area) of Form 1120-S.
-
Edit entries in numeric order (e.g., 1-2, 4-1). Edited information will be preceded by the applicable number as follows:
Additional Form 1120-S Perfection
If Then Editing an Audit Code, Edit "1 -" followed by the correct Audit Code(s). (e.g., "1 - 2" ). See IRM 3.11.217.13.1, Audit Codes. Editing a Penalty and Interest Code, Edit "2 -" followed by the Penalty and Interest Code. (e.g., "2 - 1" ). See IRM 3.11.217.13.2, Penalty and Interest Code. Editing an Installment Sale Indicator, Edit "3 -" followed by the correct Installment Sale Indicator. (e.g., "3 - 2" ). See IRM 3.11.217.13.3, Installment Sale Indicator. Editing a Tax Preference Code, Edit "4 -" followed by the Tax Preference Code. (e.g., "4 - 1" ). See IRM 3.11.217.13.4, Tax Preference Code. Editing Form 8586, Low Income Housing Credit, Edit "5 -" followed by the Form 8586 credit in dollars only. (e.g., "5 - 357" ). See IRM 3.11.217.13.5, Low-Income Housing Credit. Editing Form 8611, Recapture of Low-Income Housing Credit, Edit "6 -" followed by the Form 8611 credit in dollars only (e.g., "6 - 753" ). See IRM 3.11.217.13.6, Form 8611, Recapture of Low-Income Housing Credit. -
The Return Processing Code (RPC) is edited on Page 1, in the right margin next to Line 1c (Total, Add Lines 1a and 1b) of Form 1120-S. See IRM 3.11.217.13.7, Return Processing Code (RPC), for more information.
-
Up to nine (9) Audit Codes may be used at one time.
-
Edit Audit Codes in the left margin near Line 9 (Deductions area) of Form 1120-S.
-
Edit as "1 -" followed by the correct code(s).
-
Audit Code "1" :
-
Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request, is attached.
-
Form 8275 or Form 8275R, Disclosure Statement, is attached or statement referring specifically to IRC 6662, (Disclosure).
-
Form 8886, Reportable Transaction Disclosure Statement, is attached. See IRM 3.11.217.14.14, CCC T - Form 8886, Reportable Transaction Disclosure Statement.
-
-
Audit Code "2" :
-
Form 1120-S, Schedule K, Line 16f*, Foreign taxes paid or accrued, has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ *(Prior year line numbers: 2020 - 2018: Line 14p, 2017 - 2004: Line 14l).
-
Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation, is attached.
-
Schedule N (Form 1120), Foreign Operations of U.S. Corporations, is attached and Questions 1a, 3, 4a (2019 and prior revisions), 5, or 7a are answered "Yes" .
-
Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, is attached or Schedule N (Form 1120), Foreign Operations of U.S. Corporations, Question 4a is checked "Yes" .
-
Form 5472, Information Return of a Foreign-Owned Corporation (Under Sections 6038A and 6038C of the Internal Revenue Code), is attached.
-
Form 5713, International Boycott Report, is attached and both Questions in 7(f) are answered "Yes" .
-
Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company, or Qualified Electing Fund, is attached and Part V (Distributions From and Dispositions of Stock of a Section 1291 Fund), Lines 15a through Line 16f has an entry of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
-
Form 8832, Entity Classification Election, is attached and Box 6(d), (e), or (f) is checked.
-
Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), is attached.
-
Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs), is attached or Schedule N (Form 1120), Foreign Operations of U.S. Corporations, Question 1a is checked "Yes" .
-
Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, is attached.
-
-
Audit Code "3" :
-
Form 8883, Asset Allocation Statement Under Section 338, is attached and the amount in Box 5a, Stock Price is ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more. See IRM 3.11.217.14.13, CCC S - Form 8883, Asset Allocation Statement Under Section 338 for more information.
-
Form 8594, Asset Acquisition Statement Under Section 1060, is attached and the amount in Box 3 is ≡ ≡ ≡ ≡ ≡ ≡ or more.
-
-
Audit Code "4" :
-
Entity Control Unpostable Unit determines that a valid Form 2553, Election by a Small Business Corporation, is on file, the Form 1120, U.S. Corporation Income Tax Return, must be converted to Form 1120-S, U.S. Income Tax Return for an S Corporation.
-
-
Audit Code "5" :
-
Form 1120-S, Schedule K, Line 10, Other Income (Loss), reflects a loss of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
-
-
Audit Code "6" :
-
Presence of Form 3115, Application for Change in Accounting Method.
-
-
Audit Code "7" :
-
Form 1120-S, Schedule K, Line 16f*, Foreign taxes paid or accrued, has an entry equal to or less than ≡ ≡ ≡ ≡ ≡ ≡ ≡. *(Prior year line numbers: 2020 - 2018: Line 14p, 2017 - 2004: Line 14l)
-
Form 5713, International Boycott Report, is attached and both questions in 7(f) are not answered "Yes" .
-
Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company, or Qualified Electing Fund, is attached and Part V (Distributions From and Dispositions of Stock of a Section 1291 Fund), Lines 15a through Line 16f has an entry of less than ≡ ≡ ≡ ≡ ≡ ≡ ≡.
-
-
Audit Code "8" :
-
Audit Code "9" :
-
The date shown in Box A falls during the tax year for which the S Corporation return is being filed and the Date Incorporated in Box E is more than one year earlier than the Date of Election as an S Corporation in Box A. See Figure 3.11.217-19, Example of Editing Audit Code "9" .
-
-
Audit Code "C" - Edit audit code C when Form 8283, Noncash Charitable Contribution, is attached and Part I has any of the following conditions:
-
Form 8283 (Noncash Charitable Contributions), Box 2b is checked, or
-
Box 2b1 is checked, or
-
Line 3, column (h) has an entry.
-
-
Edit the Penalty and Interest Code in the left margin near Line 9 (Deductions area) of Form 1120-S.
-
Edit as "2 - 1" if pre-computed interest or delinquency penalty is shown on a return with a received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
-
This code is valid only within the unextended (original) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. When the pre-computed interest does not pertain to the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but to some other situation, such as an Estimated Tax Penalty, do not code "1" and do not edit Computer Condition Code "R" .
-
Form 6252, Installment Sale Income, is used to report the sale of property on the installment plan.
-
Codes are based solely on the S Corporation's response to Question 3 on Form 6252.
-
Edit the Installment Sale Indicator in the left margin near Line 9 (Deductions area) of Form 1120-S.
-
Edit as "3 -" followed by the correct code.
-
Valid codes for installment Sale Indicator are as follows:
Installment Sale Indicator
Code One Form 6252 Multiple Forms 6252 1 "Yes" response to Question 3. At least one form has a "Yes" response. 2 "No" response to Question 3. All "No" responses or a combination of "No" or blank responses. 3 "Yes" and "No" are checked or Question 3 is blank. Question 3 is blank on all returns. -
See IRM 3.11.217.40Form 6252, Installment Sale Income, for more information.
-
Edit the Tax Preference Code in the left margin near Line 9 (Deductions area) of Form 1120-S as "4 - 1" if
-
Form 4626, Alternative Minimum Tax - Corporations, for tax periods ending November 30, 2018 (201811) and prior, is attached and an amount is present on Lines 3, 6, or 11.
-
Schedule K-1, Shareholder's Share of Income, Deduction, Credits, etc., Line 15, Alternative Minimum Tax (AMT) Items, sum equals an amount of more than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ after computing positive or negative amounts.
-
See Figure 3.11.217-20, Example of Editing the Tax Preference Code.
-
-
Edit the Form 8586, Low-Income Housing Credit, in the left margin near Line 9 (Deductions area) of Form 1120-S.
-
Edit as "5 -" followed by the credit amount in dollars only.
-
When editing Form 1120-S, Schedule K, Line 13a or Line 13b for Form 8586, Low-Income Housing Credit, take the following actions:
Form 8586, Low-Income Housing Credit
If Then Form 8586 is attached with an entry on Lines 1 through Line 3 Enter CCC "9" . Form 8609-A is attached, Enter CCC "9" . Schedule K ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡Form 8586 is not attached, Correspond with the taxpayer for the missing Form 8586. Form 8586 is attached, In the left margin near Line 9 (Deductions area) of Form 1120-S, edit "5 -" followed by the amount on Line 5 of Form 8586 in dollars only. See Figure 3.11.217-21, Example of Editing Low-Income Housing Credit (Form 8586).
-
Edit the Form 8611, Recapture of Low-Income Housing Credit, in the left margin near Line 9 (Deductions area) of Form 1120-S.
-
Edit as "6 -" followed by the credit amount in dollars only.
-
Form 8611 is required if Schedule K-1, Box 17, Code E or F shows a Form 8611 credit recapture ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
-
Edit Form 8611 as follows:
Form 8611
If Then ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡Form 8611 is not attached, Correspond with the taxpayer for the missing Form 8611. Form 8611 is attached, In the left margin near Line 9 (Deductions area) of Form 1120-S, edit "6 -" followed by the Line 14, Form 8611 amount (in dollars only). Multiple Forms 8611 are attached, In the left margin near Line 9 (Deductions area) of Form 1120-S, edit "6 -" followed by the total amount (in dollars only) of all Forms 8611, Line 14*). Form 8611 is reported on Schedule K-1, Box 17, Code E or F or Form 8611 is attached, Enter CCC "9" .
-
A Return Processing Code (RPC) is an alpha character (e.g., A, B, C, D, E, F) or numeric character (e.g., 2, 4, 6, 7) used to alert the computer to a special condition.
-
The RPC is edited on Page 1, in the right margin next to Line 1c (Total, Add Lines 1a and 1b) of Form 1120-S. Thirty-five characters may be edited.
-
The table below lists the RPC and explanation when to edit each RPC.
Return Processing Code (RPC)
RPC Explanation A Form 5471, Schedule E, Income, War Profits, and Excess Profits Taxes Paid or Accrued, is attached. B Form 5471, Schedule H, Current Earnings and Profits, is attached. C Form 5471, Schedule I-1, Information for Global Intangible Low-Taxed Income, is attached. D Form 5471, Schedule P, Previously Taxed Earnings and Profits of U.S. Shareholder of Certain Foreign Corporations, is attached. E Form 8865, Schedule G, Statement of Application of the Gain Deferred Method Under Section 721(c), is attached. F Form 8865, Schedule H, Acceleration Events and Exceptions Reporting Relating to Gain Deferral Method Under Section 721(c), is attached. G Form 5471, Schedule G-1, Cost Sharing Arrangement, is attached. H Form 5472, Foreign Corporation Engaged in a U.S. Trade or Business, Part VIII has an entry (e.g., description, checkbox marked, percent, or an amount). J For tax periods 202201 - 202212, taxpayer writes IRA22DPE or CHIPS22DPE on Form 1120-S, line 24d or on an attachment. . K For tax periods 202201 - 202212, taxpayer writes IRA22TRE at the top of the return or on an attachment. L Form 7204, Consent to Extend the Time to Assess Tax Related to Contested Foreign Income Taxes - Provisional Foreign Tax Credit Agreement, is attached. M Form 7205, Energy Efficient Commercial Buildings Deduction, is attached. 1 Not Applicable (N/A) at this time 2 Form 8992, U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI), is attached. 3 Not Applicable (N/A) at this time. 4 Form 8994, Employer Credit for Paid Family and Medical Leave, is attached. 6 Form 8996, Qualified Opportunity Fund, is attached. 7 Form 8990, Limitation on Business Interest Expense Under Section 163(j), is attached. 8 Not Applicable (N/A) at this time 9 Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, is attached.
-
Computer Condition Codes (CCCs) identify special conditions or computations for the computer. CCCs post to the Master File.
-
CCCs are edited in the center of Lines 1 and 2 of the Form 1120-S.
-
Edit CCC "B" when any of the following conditions are met:
-
Schedule M-3 (Net Income (Loss) Reconciliation for S Corporations With Total Assets of $10 Million or More) box on Form 1120-S, Page 1, Box C is checked, or
-
Schedule M-3 is attached.
-
-
Edit Audit Code "8" if Schedule M-3 is attached. See IRM 3.11.217.13.1, Audit Codes.
-
Do not edit CCC "D" if the taxpayer requests abatement for "Failing to Pay Timely" when the return is submitted. Send Letter 1382C, Penalty Removal Request Incomplete, to inform the taxpayer of the proper procedure to follow to request penalty abatement when a penalty is assessed.
-
Edit CCC "D" when the return is stamped: "DO NOT ASSESS FAILURE TO PAY PENALTY" .
-
Edit CCC "D" on a "Final" , Balance Due return if the received date is after the short period due date but before the regular tax period due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
-
Edit CCC "D" if an S Corporation attaches a statement indicating the S Corporation qualifies for an automatic 3-month extension under Regulations Section 1.6081-5 or shows one of the following:
-
The domestic S Corporation transacts its business and keeps its books and records of account outside the United States and Puerto Rico, or
-
The domestic S Corporation's principal income is from sources within the possessions of the United States.
-
-
Do not edit CCC "D" when pre-computed penalty is shown on the return.
-
Effective January 1, 2017, the BMF ID Theft Liaison may edit Computer Condition Code "E" on Form 1120-S (any year) to identify a potential identity theft filing if the return is claiming a refund of ≡ ≡ ≡ ≡ ≡ ≡ ≡. If CCC "E" was edited, take no action.
-
If a tax examiner in Submission Processing (SP) Code and Edit (C&E) finds a case with attachments or correspondence indicating the taxpayer is a victim of ID Theft and the return is claiming a refund of ≡ ≡ ≡ ≡ ≡ ≡ ≡, give the whole case to your manager/lead. Your manager/lead will expedite the return to the Planning and Analysis (P&A) staff for referral to one of the SP BMF ID Theft liaisons. The taxpayer must show that they are a victim of "ID Theft" ; do not send cases that are subject to "Criminal Investigation (CI)" , "Examination (Exam)" , or "Fraud" review.
-
If the SP Theft Liaison says the return is "ID Theft" , the tax examiner will (upon request) edit CCC "E" .
-
Edit CCC "F" when the "Final Return" box is checked or there is another indication the S Corporation is not liable for filing future returns. Notations such as (but not limited to):
-
Final
-
Deceased
-
Out-of-Business
-
Liquidation
-
Exempt under IRC 501(c)(3)
-
Dissolved
-
Cites IRC 708(b)(1)(B)
-
Notates "Filed in accordance with Rev. Proc. 2003-84"
-
-
The presence of Form 966, Corporate Dissolution or Liquidation, is an indication of a possible dissolution. If Form 966 is attached, compare tax periods in Box 7a to the Form 1120-S being edited. If the tax periods are the same and the entity section of Form 966 is for the S Corporation, edit CCC "F"
-
If a prepaid credit is claimed (Lines 24a and 24b (202301 and later)) on a short period "Final" return, enter Action Code 342 on the return. See IRM 3.11.217.6.8, Short Period Return with Prepaid Credits.
-
Edit the Tax Period Beginning on final returns according to IRM 3.11.217.6.2, Tax Period Beginning - Final, Initial, or Short Period Return.
-
The instructions in this subsection only apply to tax periods 201712 through 202012.
-
CCC "J" shows Section 965 (Repatriation Provision), Treatment of deferred foreign income upon transition to participation exemption system of taxation for U.S. Shareholders of Specified Foreign Corporations per Tax Cuts and Jobs Act of 2017, Provision Section 14103, Public Law 115-97 (H.R. 1).
-
Edit CCC "J" and Action Code 460 (Management Suspense) when:
-
"Section 965" or "965 Tax" (or similar language) notated on the return, schedules, attachments, or statements.
-
IRC 965 Transition Tax Statement (or similar 965 statement) is attached.
-
Form 965, Inclusion of Deferred Foreign Income Upon Transition to Participation Exemption System, is attached.
-
Form 965, Schedule A, U.S. Shareholder’s Section 965(a) Inclusion Amount, is attached.
-
Form 965, Schedule B, Deferred Foreign Income Corporation’s Earnings and Profits, is attached.
-
Form 965, Schedule C, U.S. Shareholder’s Aggregate Foreign Earnings and Profits Deficit, is attached.
-
Form 965, Schedule D, U.S. Shareholder’s Aggregate Foreign Cash Position, is attached.
-
Form 965, Schedule E, U.S. Shareholder’s Aggregate Foreign Cash Position - Detail, is attached.
-
Form 965, Schedule F, Foreign Taxes Deemed Paid by Domestic Corporation, is attached.
-
Form 965, Schedule G, Foreign Taxes Deemed Paid by Domestic Corporation, is attached.
-
Form 965, Schedule H, Disallowance of Foreign Tax Credit and Amounts Reported on Forms 1116 and 1118, is attached.
-
Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, is attached.
-
Form 1120-S, Schedule K, Line 10, Other income (loss), shows a significant entry with the notation "Section 965" or similar language (202012 - 201712 form revisions).
-
Form 1120-S, Schedule K, Line 12d, Other deductions, shows a significant entry with the notation "Section 965" or similar language (202012 - 201712 form revisions).
-
Form 1120-S, Schedule K, Line 14r, Other foreign tax information, shows a significant entry with the notation "Section 965" or similar language (202012 - 201712 form revisions).
-
Form 1120-S, Schedule K, Line 17d, Other items and amounts, shows a significant entry with the notation "Section 965" or similar language.
-
-
Edit CCC "M" when:
-
Tax period ending is 201712 and later, and
-
Form 8949, Sales and Other Dispositions of Capital Assets, contains a code "Z" or code "Y" in Column (f).
-
-
CCC "M" is for Form 8949 per Tax Cuts and Jobs Act of 2017, P.L. 115-97 (H.R. 1), Section 13823, Opportunity Zones. Taxpayers who elect to defer gain on the sale of an asset by investing in an Opportunity Zone Fund will show that they are deferring the gain by entering code "Z" or "Y" in Column (f).
-
CCC "O" is entered when a Pre-Settlement Manual Refund will be made and a Form 3753, Manual Refund Posting Voucher, Form 5792, Request for IDRS Generated Refund (IGR), or Form 12857, Refund Transfer Posting Voucher, is attached. Verify that the Name Control, EIN, and Tax Period on the return is the same as the data on the form.
-
Research to determine if "TC 840" (Manual Refund Transaction) has posted:
-
-
TAS manual refund returns, see IRM 3.11.217.3.11, Refund Returns 45 Day Jeopardy and High Dollar Refunds, for processing instructions.
-
Do not edit CCC "R" when a reason is given by the taxpayer for the delay in filing a return. Issue Letter 1382C, Penalty Removal Request Incomplete, and continue editing the return.
-
Edit CCC "R" if an S Corporation attaches a statement indicating the S Corporation qualifies for an automatic 3-month extension under Regulations Section 1.6081-5 or shows one of the following:
-
The domestic S Corporation transacts its business and keeps its books and record of account outside the United States and Puerto Rico, or
-
The domestic S Corporation's principal income is from sources within the possessions of the United States
-
-
Edit CCC "R" on a "Final" return if the received date is after the short period due date but before the regular full tax period due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
-
Edit CCC "R" on the return when there is an indication such as "DO NOT ASSESS FAILURE TO FILE PENALTY" on a secured return annotated with "599" .
-
Edit CCC "R" on the short period return when the Statement referring to "S" (1120-S) Status Termination or revocation under Section 1362, or Form 1120-S, Page 1, Item H, Box 5, S Election termination or revocation is checked. See IRM 3.11.217.6.4, Short Period - Editing Proof of Entitlement, for more information.
-
Edit CCC "R" on the return if an internal use form or routing slip is attached and shows "DO NOT ASSESS FAILURE TO FILE PENALTY" .
-
All CCC "R" coded returns must have an IRS received date. If one is not present, edit the IRS received date in the middle of the return.
-
Edit CCC "S" when Form 8883, Asset Allocation Statement Under Section 338, is attached to Form 1120-S.
-
Edit CCC "T" when Form 8886, Reportable Transaction Disclosure Statement, is attached to Form 1120-S. Edit Audit Code "1" when Form 8886 is attached. See IRM 3.11.217.13.1, Audit Codes.
-
Edit CCC "W" when Statute Control cleared the return. See IRM 3.11.217.3.7, Statute Returns.
-
Edit CCC "X" when the taxpayer shows on the tax return a request that any balance left over after paying tax or penalties to be applied to another account. Take the following actions to route the request to Accounts Management (AM).
-
Prepare Form 3465, Adjustment Request, and show in the "Routing" box "Adjustments" .
-
Notate the requested action in the "Remarks" box.
-
Attach a copy of Page 1 of the tax return to Form 3465.
-
-
Edit CCC "Y" for Change of Accounting Period. Enter only for short period returns due to change of accounting period (not due to initial or final filing). See "Short Periods" in IRM 3.11.217.6.4, Short Period-Editing Proof of Entitlement, through IRM 3.11.217.6.8, Short Period Return with Prepaid Credits.
-
Edit CCC "Y" on a Short Period Form 1120-S when the taxpayer shows any of the following:
-
Statement referring to Qualifying Disposition under Regulations Section 1.1368-1(g)(2)(i).
-
Statement referring to “S” Status Election and taxpayer is changing to required tax year (12/31/XX).
-
Statement the S Corporation is coming out of consolidation.
-
Statement the corporation is a qualified sub chapter S subsidiary.
-
Notation referring to “Section 1398 election” (Bankruptcy Petition was filed) or “Second Short Year after Section 1398 Election”.
-
-
If a prepaid credit is claimed on a short period return (Lines 24a and 24b), enter Action Code 342 on the return. See IRM 3.11.217.6.8, Short Period Return with Prepaid Credits.
-
Edit the Tax Period Beginning on short period returns according to IRM 3.11.217.6.2, Tax Period Beginning - Final, Initial, or Short Period Return.
-
Edit CCC "1" if Form 8824, Like-Kind Exchanges (and section 1043 conflict-of-interest sales), is attached.
-
Edit CCC "2" if Form 8938, Statement of Specified Foreign Financial Assets, is attached to Form 1120-S.
-
See IRM 3.11.217.27.10, Schedule N (Form 1120), Line 8 - Statement of Specified Foreign Financial Assets, and IRM 3.11.217.45, Form 8938, Statement of Specified Foreign Financial Assets, for more information.
-
Edit CCC "3" if the return is unprocessable and there is a sign that correspondence was sent, but no reply received.
-
Edit CCC "8" when any of the following is present:
-
Form 2220, Underpayment of Estimated Tax by Corporations, is attached and Part II, Box 6 or Box 7 is checked.
-
Form 2220 is attached and any column on Form 2220, Schedule A, Page 4, Line 38 has entries.
-
-
Edit CCC "9" when any of the following are attached:
-
Form 8611, Recapture of Low-Income Housing Credit
-
Form 8609-A, Annual Statement for Low-Income Housing Credit (prior year Form 8609, Schedule A)
-
Form 8586, Low-Income Housing Credit, with entries on any of Lines 1 or Line 3 (2016 and prior revisions)
-
-
Edit CCC "9" whenever recapture tax for Low-Income Housing Credit is reported on Schedule K-1, Line 13, Code A or B.
-
This subsection provides instructions for processing Form 1120-S, U.S. Income Tax Return for an S Corporation. Form 1120-S can be filed for a calendar year or a fiscal year.
-
Document Perfection is responsible for arranging Form 1120-S in the following order when transcription line entries are present:
-
Pages 1, 2, 3, 4, 5
-
Schedule N, Foreign Operations of U.S. Corporations, - See IRM 3.11.217.27, Schedule N (Form 1120) - Foreign Operations of U.S. Corporations.
-
Schedule D, (Form 1120-S) Capital Gains and Losses and Built-in Gains, - See IRM 3.11.217.30, Schedule D (Form 1120-S) - Capital Gains and Losses and Built-in Gains.
-
Form 4797, Sales of Business Property, - See IRM 3.11.217.31, Form 4797, Sales of Business Property.
-
Form 8949, Sales and other Dispositions of Capital Assets, - See IRM 3.11.217.32, Form 8949, Sales and other Dispositions of Capital Assets.
-
Form 8996, Qualified Opportunity Fund, - See IRM 3.11.217.33, Form 8996, Qualified Opportunity Fund.
-
Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation, - See IRM 3.11.217.28, Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation.
-
Form 1125-A, Cost of Goods Sold, - See IRM 3.11.217.34, Form 1125-A, Cost of Goods Sold.
-
Form 8050, Direct Deposit of Corporate Tax Refund.
-
Form 4136, Credit for Federal Tax Paid on Fuels, - See IRM 3.11.217.35, Form 4136, Credit for Federal Tax Paid on Fuels.
-
Form 8941, Credit for Small Employer Health Insurance Premiums, - See IRM 3.11.217.37, Form 8941, Credit for Small Employer Health Insurance Premiums.
-
Form 5884-B, New Hire Retention Credit (Tax Periods 2010 and 2011).
-
Form 3800, General Business Credit (Tax Periods 202301 and later).
-
Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, - See IRM 3.11.217.41, Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF).
-
Form 6252, Installment Sale Income, - See IRM 3.11.217.40Form 6252, Installment Sale Income.
-
Form 8936, Schedule A, Clean Vehicle Credit Amount (Tax Periods 202301 and later).
-
Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties
-
Schedule K-1 (Form 1120-S), Shareholder’s Share of Income, Deductions, Credits, etc. - Place all Schedules K-1 (Form 1120-S), filed as attachments to Form 1120-S, as the last attachment in the package or follow local agreement. Detach Schedules K-1 for current year (TY2024), two preceding years (TY2023 and TY2022), and future Schedules K-1. See IRM 3.0.101, Schedule K-1 Processing, for complete instructions to edit and process Schedule K-1. See IRM 3.11.217.44, Schedule K-1 - Shareholder’s Share of Income, Deductions, Credits, etc. and IRM 3.11.217.12, Number of Shareholders - Page 1, Line 1, for more editing instructions.
-
Form 8938, Statement of Specified Foreign Financial Assets - Sequence Form 8938 to the back of the last page of Form 1120-S (after schedules and attachment pages), attaching the Form 8938 so that it is back-to-back with the parent return.
-
-
It is not necessary to sequence the forms or schedules listed above if there are no transcription line entries.
-
It is not necessary to sequence an Amended return. See IRM 3.11.217.3.9, Amended Returns, for more information.
-
Income Items - Lines 1a, 1b, 1c, 2, 3, 4, 5, and 6 can have positive or negative amounts.
-
Deduction Items - All lines in the deduction section can have positive or negative amounts.
-
Tax and Payment Items - Following lines are positive only amounts:
-
Line 23c - Total tax (Add Lines 23a and 23b)
-
Line 24a - Current year’s estimated tax payments and preceding year’s overpayment credited to the current year
-
Line 24b - Tax Deposited with Form 7004
-
Line 24c - Credit for Federal Tax Paid on Fuels (attach Form 4136)
-
Line 24d - Elective payment election amount from Form 3800
-
Line 24z - Total Payments (Add Line 24a through Line 24d)
-
Line 25 - Estimated Tax Penalty
-
Line 28 - Credit Elect Amount
-
-
Do not bracket any negative entries on Lines 26, 27, and 28.
-
All line items are edited in dollars only and all the line items are either positive or negative.
-
Line 1a is Gross Receipts or Sales and Line 1b is Returns and Allowances. Do not bracket or "X" amount on Line 1b if negative.
-
Edit Lines 1a, 1b, and 1c as follows:
Line 1 - Gross Receipts or Sales
If And Then Line 1a is blank, Amounts are present on Line 1b or Line 1c, Add Line 1b and Line 1c, and edit the total amount to Line 1a. Bracket if negative. Lines 1a, 1b, and 1c are blank, The taxpayer shows “Gross Profit” on Line 3, Add Lines 2 and 3, and edit the amount to Line 1a. Bracket if negative. Line 1b is blank, check attachments. If found, Edit the amount to Line 1b. Do not bracket if negative. Line 1b is blank, check attachments. If not found, Line 1a is greater than Line 1c, Compute Line 1b (Line 1a minus Line 1c) and edit the amount to Line 1b.
-
Follow instructions below for editing Cost of Goods Sold (Line 2):
Line 2 - Cost of Goods Sold
If And Then Line 2 is blank, An amount is present on Form 1125-A, Line 8, Edit the amount from Form 1125-A, Line 8. Bracket if negative. Line 2 is blank, Form 1125-A, Line 8 is blank and Line 6 has an entry, Edit the amount from Line 6, minus any amount on Line 7. Bracket if negative. Line 2 is blank, Form 1125-A, Lines 6 and 8 are blank and there are entries on Lines 1 through 5, Edit the total of Lines 1 through 5 minus any amount on Line 7. Bracket if negative.
-
Correspond with the taxpayer for the missing Form 4797, Sales of Business Property, if there is an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Line 4, Page 1 and Form 4797 is not attached.
-
Form 4797 is a transcribed form. Place Form 4797 in sequence order if Line 1b or Line 1c (2021 and later revisions) has significant entries. See IRM 3.11.217.31, Form 4797, Sales of Business Property, for more information.
-
This subsection provides instructions for editing the Deduction area of Form 1120-S, including the Salary and Wage Code. All line items are edited in dollars only and all the line items are positive or negative unless otherwise stated.
-
Edit a "1" in the right margin of Page 1, Line 8 Form 1120-S if an entry greater than zero is present on any of the following:
-
Form 1120-S, U.S. Income Tax Return for an S Corporation, Page 1, Line 8.
-
Form 1125-A, Cost of Goods Sold, Line 3. See Figure 3.11.217-22, Example of Editing Salary and Wage Code from Form 1125-A.
-
Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation, Page 1, Line 13, Columns A through D or Page 2, Line 13, Columns E through H.
-
Schedule F, Profit or Loss From Farming, Line 22.
-
Form 4835, Farm Rental Income and Expenses (Crop and Livestock Shares (Not Cash) Received by Landowner (or Sub-Lessor)), Line 20, or
-
An attachment shows an entry for salaries, wages, labor, or payroll. See Figure 3.11.217-23, Example of Editing Salary and Wage Code from an Attachment.
-
-
Do not code for any of the following entries:
-
Contract, outside, custom, or miscellaneous labor
-
Temporary help
-
Management fees
-
Janitorial services
-
Maintenance fees
-
Commissions
-
Payroll taxes
-
Casual labor
-
-
Accept taxpayer’s entry.
-
For prior years, Line 19 was used for other deductions.
-
Edit RPC "M" if Form 7205 is attached. See IRM 3.11.217.13.7, Return Processing Code (RPC), for more information.
-
Edit Page 1, Line 20 as follows:
-
In prior years, Other Deductions were listed on line 19.
-
Edit Page 1, Line 21 as follows:
-
In prior years, Total Deductions were listed on line 20.
-
Edit Page 1, Line 22 as follows:
Line 22 - Ordinary Income
If Then Line 22 is blank, Subtract Line 21 (Total Deductions) from Line 6 (Total Income) and edit this amount to Line 22. Bracket if negative. If Line 22 is the only entry on Page 1 of the return and the amount is positive, Edit the Line 22 amount to both Lines 5 and 6. If Line 22 is the only entry on Page 1 of the return and the amount is negative, Edit the Line 22 amount to both Lines 20 and 21 as a positive amount. Note:
Correspond with the taxpayer if ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ no Schedule K-1 is attached. See IRM 3.11.217.44, Schedule K-1.
-
In prior years, Ordinary Business Income was listed on line 21.
-
This subsection provides instructions for editing the Tax and Payments section of Form 1120-S.
-
In prior years, Tax and Payments were listed on Lines 22 through 27.
-
Total Tax (Line 23c) can only be a positive amount. If blank, edit as follows:
Line 23c - Total Tax
If Then There is no entry on Line 23c (Total Tax), Compute and edit the total of Lines 23a and 23b to Line 23c (Total Tax). There is no entry on any of Lines 23a, 23b, and 23c (Total Tax), and Schedule D, (Form 1120-S) Capital Gains and Losses and Built-in Gains, is present, Edit the amount from Schedule D, Line 23 to Form 1120-S, Page 1, Line 23c. -
If Lines 23a and 23b are blank, and a significant amount is present on Line 23c (Total Tax), edit as follows:
Line 23c - Total Tax
If Then Line 23c includes pre-computed interest, delinquency penalty, or other charge, -
"X" the Line 23c (Total Tax) amount.
-
Delete the interest, penalty, or other charge from the Total Tax.
-
Edit the correct Total Tax to the left of the original entry, if other than “0” (zero).
Line 23c includes "Tax From Form 4255" , Certain Credit Recapture, Excessive Payments, and Penalties (or similar language), -
Accept the taxpayer’s entry.
-
Do not correspond with the taxpayer for the missing Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties, if not present.
Line 23c includes "Last In First Out (LIFO) Tax" (or similar language), Accept the taxpayer’s entry. No supporting form, schedule, or statement is attached to explain the entry on Line 23c (Total Tax), Correspond with the taxpayer using Letter 118C, Corporate Return Incomplete for Processing: Form 1120, Form 1120 Series, Form 1120-S. -
-
In prior years form revisions , Total Tax was listed on line 22c.
-
Accept taxpayer's entry.
-
In prior years, Estimated Tax Payments are listed on line 23a.
-
Accept taxpayer's entry.
-
In prior years, Tax Deposited with Form 7004 is listed on line 23b.
-
If Line 23d (Prior year line numbers: 2020 - 2018 revisions: Line 23e) is blank or illegible and there are entries on any of Lines 23a, 23b or 23c, compute the total of Lines 23a, 23b and 23c and edit the total to Line 23d (Prior year line numbers: 2020 - 2018 revisions: Lines 23a, 23b, 23c and 23d).
-
If Line 23d (Prior year line numbers: 2020 - 2018 revisions: Line 23e) has an entry, but there are no entries on Lines 23a through Line 23c, double arrow or edit the amount to Line 23a (Prior year line numbers: 2020 - 2018 revisions: Lines 23a, 23b, 23c and 23d).
-
If Form 1120-S, line 23d, has an amount listed claiming the IRA22DPE, and Form 3800 is not attached, correspond with the taxpayer for the missing form for tax periods ending 202301 and subsequent.
-
If the taxpayer has indicated an "Elective Payment" or "Deemed Payment" by writing "IRA22DPE" on Form 1120-S, line 23d dotted portion, refer to the instructions found at IRM 3.11.217.2.12, Elective or Deemed Payment Election (DPE) and Credit Transfers.
-
If Line 23d has a significant entry, then "X" the entry.
-
If Form 8827 is attached, do not edit the credit amount to Line 23d. Continue processing the return.
-
If the taxpayer shows a credit on Line 23d from Form 8827, Refundable Credit from Form 8827, then "X" the entry. Continue processing the return.
-
If Line 23e is blank or illegible and there are entries on any of Lines 23a, 23b, 23c, or 23d, compute the total of Lines 23a, 23b, 23c, and 23d and edit the total to Line 23d.
-
If Line 23e has an entry, but there are no entries on Lines 23a through Line 23d, double arrow or edit the amount to Line 23a.
-
If Line 24z is blank or illegible and there are entries on any of Lines 24a, 24b, 24c, or 24d, compute the total of Lines 24a, 24b, 24c and 24d and edit the total to Line 24z.
-
If Line 24z has an entry, but there are no entries on Lines 24a through Line 24d, double arrow or edit the amount to Line 24a.
-
If Form 1120-S, line 24d, has an amount listed claiming the IRA22DPE, and Form 3800 is not attached, correspond with the taxpayer for the missing form for tax periods ending 202301 and subsequent.
-
If the taxpayer has indicated an "Elective Payment" or "Deemed Payment" by writing "IRA22DPE" on Form 1120-S, line 24d dotted portion, refer to the instructions found at IRM 3.11.217.2.12, Elective or Deemed Payment Election (DPE) and Credit Transfers.
-
Estimated Tax Penalty must be edited when either:
-
An additional penalty is pre-computed on the return, or
-
Form 2220, Underpayment of Estimated Tax by Corporations, is attached to the return, and shows liability for estimated tax penalty.
-
-
In prior years, Estimated Tax Penalty was reported on line 24. IRM 3.11.217.18.12, Line 24 - Estimated Tax Penalty.
-
To edit Form 1120-S, Line 25, do the following:
-
If the taxpayer follows the instructions on Form 2220, the applicable amount must be shown on Form 2220, Line 38*, and on Form 1120-S, Line 25. The taxpayer may have also increased Form 1120-S, Line 26 or decreased Form 1120-S, Line 27, accordingly. Do not adjust this amount.
-
If Form 1120-S, Line 25 is blank, edit the amount from Form 2220, Line 38, to Form 1120-S, Line 25.
-
If Form 1120-S, Line 25 is blank and Form 2220, Line 38 is also blank, review the Form 2220 to determine the taxpayer's method of computation. If there are entries on Form 2220, Line 37, Columns (a) - (d), compute the total amount and enter on Form 1120-S, Line 25.
-
-
Estimated Tax Penalty must be edited when either:
-
An additional penalty is pre-computed on the return, or
-
Form 2220, Underpayment of Estimated Tax by Corporations, is attached to the return, and shows liability for estimated tax penalty.
-
-
To edit Form 1120-S, Line 24, do the following:
-
If the taxpayer follows the instructions on Form 2220, the applicable amount must be shown on Form 2220, Line 38*, and on Form 1120-S, Line 24. The taxpayer may have also increased Form 1120-S, Line 25 or decreased Form 1120-S, Line 26, accordingly. Do not adjust this amount.
-
If Form 1120-S, Line 24 is blank, edit the amount from Form 2220, Line 38, to Form 1120-S, Line 24.
-
If Form 1120-S, Line 24 is blank and Form 2220, Line 38 is also blank, review the Form 2220 to determine the taxpayer's method of computation. If there are entries on Form 2220, Line 37, Columns (a) - (d), compute the total amount and enter on Form 1120-S, Line 24.
-
-
Lines 26 and 27 are edited as positive only. If the taxpayer enters a negative amount, no action is required.
-
Edit the proper entry to Line 26 or Line 27 if both are blank. Do both of the following:
-
Add Lines 23c and 25. Subtract Line 24z (Prior year line numbers: 2022 - 2021 Form 1120-S revision: Line 23d, 2018 - 2020 revision: Line 23e; 2017 - 2007 revision: Line 23d).
-
Edit the positive result on Line 26 or the negative result (do not bracket) on Line 27.
-
-
If pre-computed interest, delinquency penalty, or other charge is evident, make sure that it has not been included in Line 25 or reduced Line 26.
Lines 26 and 27 - Amount Owed/Overpayment
If Then The amount on Line 26 has pre-computed interest, delinquency penalty, or other charge, -
"X" Line 26 amount.
-
Delete the interest, penalty, or other charge from the amount owed.
-
Edit the correct amount owed to the left of the original entry.
The amount on Line 27 is reduced by pre-computed interest, delinquency penalty, or other charge, -
"X" Line 27 amount.
-
Compute the Overpayment amount without the interest, penalty, or other charge.
-
Edit the correct Overpayment to the left of the original entry.
-
-
In prior years, Amount Owed/Overpayment is listed on lines 25 and 26.
-
A signature and jurat are required on all returns except the following:
-
Returns prepared under IRC 6020(b). These returns must be signed by a Compliance Function representative. See IRM 3.11.217.3.6.1, IRC 6020(b) Prepared by Collections.
-
Returns prepared by Examination, for example Substitute for Return "SFR" or "SUBSTITUTE RETURN" . See IRM 3.11.217.3.6.3, Examination Prepared.
-
Dummy returns prepared by the IRS.
-
Returns filed under IRC 501(d) (Religious or Apostolic Organization).
-
Returns attached to taxpayer response to the IRS correspondence containing a jurat and the taxpayer’s signature. See paragraph (5) below.
-
Re-entry returns originally electronically filed (E-File). These returns may be identified by the presence of Modernized E-file (MeF) printouts or "efile GRAPHIC print - Do Not Process" or "Tax Return Print (TRPRT) Do Not Process" (or similar language) in lieu of an actual return.
-
-
Do not correspond for a signature on "CII" returns with Form 13596, Reprocessing Returns, attached. See IRM 3.11.217.3.4.3, Correspondence Imaging Inventory (CII) Returns, for processing instructions.
-
If a signature is missing, correspond.
Exception:
Do not correspond on Section 965 Returns. ERS will take care of any correspondence needed. See IRM 3.11.217.2.11, Section 965 Returns (201712 through 202012), for more information.
Note:
See IRM 3.11.217.3.4.2(2) - Issuing Correspondence - for returns that are incomplete and appear to be duplicate filings.
Signature
If Then -
The return is not signed on the line designated for the taxpayer's signature, or
-
The jurat is not present on the line designated for the taxpayer's signature (a non-standard return), or
-
Only the entity information is present and there are no attachments containing tax data,
-
Edit Action Code 225 (Correspondence for Signature only) or 226 (International Correspondence for Signature only).
-
Leave in batch and continue editing.
Note:
Paper returns sent in by the filer that says their return was rejected through the E-file system require a signature. Form 8879-CORP, E-file Authorization for Corporations, is not an acceptable signature substitute for a paper return. Prior to Tax Year 2022 (process year 2023), Form 8879-S, e-file Signature Authorization for Form 1120-S, was used but the form is now retired.
-
-
If the jurat is altered or stricken (crossed out), see IRM 3.11.217.2.8, Frivolous Arguments, for frivolous return instructions.
-
Accept a "signature declaration" (a signature with jurat obtained through the IRS correspondence) if attached to the return.
-
If the "signature declaration" is altered or stricken (crossed out), see IRM 3.11.217.2.8, Frivolous Arguments, for frivolous return instructions.
-
If the taxpayer responds with a self-prepared "signature declaration" , it must contain the same language as the jurat on the tax return: e.g., "UNDER PENALTIES OF PERJURY, I DECLARE THAT I HAVE EXAMINED THIS RETURN INCLUDING ACCOMPANYING SCHEDULES AND STATEMENTS, AND TO THE BEST OF MY KNOWLEDGE AND BELIEF, IT IS TRUE, CORRECT, AND COMPLETE."
-
Form 8879-CORP, E-file Authorization for Corporations, is not an acceptable signature substitute for a paper return.
-
-
Tax examiners are not handwriting experts. 26 Code of Federal Regulations (CFR) 301.6064-1 allows the Service to presume that the signature on the return, statement, or other document is the true signature of the person who signed the document.
-
The following types of signatures are not valid for Form 1120-S:
-
Faxed signatures
-
Electronic signatures
-
Docusign signatures
-
Typed font signatures
-
-
Correspond one time for the signature.
-
The Paid Preparer Checkbox is next to the taxpayer signature area. It shows whether the taxpayer has elected to allow the Paid Preparer to answer questions about the return as it is processed.
-
No action is required on Amended returns.
-
Take the following actions when an entry is present in the Paid Preparer Checkbox:
-
The Paid Preparer section is below the Signature area at the bottom of Form 1120-S, U.S. Income Tax Return for an S Corporation.
-
The Preparer's Tax Identification Number (PTIN) is to the right of the Preparer's Signature in the PTIN Box at the bottom right margin of Form 1120-S, Page 1.
-
No action is required on Amended returns.
-
A valid PTIN begins with the alpha "P" followed by an eight-digit number (e.g., PXXXXXXXX). Circle the PTIN if invalid, all zeros or all nines.
-
The Firm's EIN is located below the Preparer's PTIN Box at the bottom right margin of Form 1120-S, Page 1.
-
No action is required on amended returns.
-
The Firm's EIN is a nine-digit number. Circle the EIN if it is invalid, all zeros or all nines.
-
The Paid Preparer's Phone Number is below the Paid Preparer's EIN at the bottom right corner of Form 1120-S, Page 1.
-
Schedule A was replaced with Form 1125-A, Cost of Goods Sold.
-
See IRM 3.11.217.34, Form 1125-A, Cost of Goods Sold, for processing instructions of prior year returns containing a Schedule A.
-
This subsection provides instructions for editing Schedule B, Other Information, on Form 1120-S.
-
The Accounting Method Code is transcribed from the taxpayer’s response to the boxes on Form 1120-S, Schedule B, Line 1.
-
No editing is required.
-
If Form 1120-S, Schedule B, Question 15 "Is the corporation attaching Form 8996, Qualified Opportunity Fund, to certify as a Qualified Opportunity Fund" is answered "Yes" and the amount line is blank, search attachments for Form 8996. If Form 8996 is attached with an amount on Line 15 (Form 8996 prior year revision line numbers: 2020: Line 14, 2018: Line 13), then edit the amount to Schedule B, Question 15.
-
If Form 8996, Qualified Opportunity Fund, is attached, edit Return Processing Code (RPC) 6 to Page 1, in the right margin next to Line 1c (Total, Add Lines 1a and 1b) of Form 1120-S. See IRM 3.11.217.13.7, Return Processing Code (RPC), for more information.
-
See IRM 3.11.217.33, Form 8996, Qualified Opportunity Fund, for more information.
-
Form 1120-S, Schedule B, line 16 has a checkbox regarding Crypto Currency Reporting for tax periods ending 202301 and subsequent.
-
The valid characters for the checkbox field (listed in the table below) are 0,1,2, and 3. Data will enter:
Character Description 0 No boxes checked 1 "Yes" box checked 2 "No" box checked 3 Both boxes checked
-
This subsection provides instructions for editing Schedule K, Shareholders' Pro Rata Share Items, on Form 1120-S.
-
Correspond for Schedule K if missing or blank unless the return meets any of the following conditions:
-
The tax period 201412 and prior.
-
Attached Schedule K-1 (Form 1120-S), Part III, has no tax data or reports only Ordinary Income, on Line 1.
-
Any of the following are attached:
Schedule D, (Form 1120-S) Capital Gains and Losses and Built-in Gains
Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation
Form 6478, Biofuel Producer Credit
Form 4797, Sales of Business Property
Form 4562, Depreciation and Amortization (Including Information on Listed Property)
Form 3468, Investment Credit -
The return is for a short period.
-
The return has no significant entries or is blank.
-
-
Correspond with the taxpayer for Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation, if the amount on Form 1120-S, Page 3, Schedule K, Line 2 is either ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8825 is not attached.
-
For processing of Form 8825, see IRM 3.11.217.28, Form 8825 - Rental Real Estate Income and Expenses of a Partnership or an S Corporation.
-
If Form 1120-S, Schedule K, Line 4, Interest income, is blank check the supporting attachments for Portfolio Income. If an amount is present, edit to Line 4.
-
Bracket if negative.
-
If Form 1120-S, Schedule K, Line 10, Other income (loss), reflects a loss ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ edit Audit Code "5" in the left margin near Line 9 (Deductions area). See IRM 3.11.217.13.1, Audit Codes, for more information.
-
If Form 1120-S, Schedule K, Line 10, Other income (loss) shows a significant entry with the notation "Section 965" or similar language (202012 - 201712 form revisions), edit Computer Condition Code (CCC) "J" and Action Code 460 (Management Suspense). This instruction is only valid for Tax Periods 201712 - 202012.
-
Form 1120-S, Schedule K-1, Box 10, with Code F (202012 - 201712 form revisions) may show a Section 965(a) return. See IRM 3.0.101, Schedule K-1 Processing, for complete instructions to edit and process Schedules K-1. This instruction is only valid for Tax Periods 201712 - 202012.
-
See IRM 3.11.217.2.11, Section 965 Returns (201712 through 202012), IRM 3.11.217.14.7, CCC "J" - Section 965 Tax, and IRM 3.11.217.3.1, Action Codes, for more information. This instruction is only valid for Tax Periods 201712 - 202012.
-
If Form 1120-S , Schedule K, Line 12d, Other deductions, shows a significant entry with the notation "Section 965" or similar language (202012 - 201712 form revisions), edit Computer Condition Code (CCC) "J" and Action Code 460 (Management Suspense). This instruction is only valid for Tax Periods 201712 - 202012.
-
Form 1120-S, Schedule K-1, Box 12, with Code K (202012 - 201712 form revisions) may show a Section 965(c) return. See IRM 3.0.101, Schedule K-1 Processing, for complete instructions to edit and process Schedules K-1. This instruction is only valid for Tax Periods 201712 - 202012.
-
See IRM 3.11.217.2.11, Section 965 Returns (201712 through 202012), IRM 3.11.217.14.7, CCC J - Section 965 Tax, and IRM 3.11.217.3.1, Action Codes, for more information. This instruction is only valid for Tax Periods 201712 - 202012.
-
If Form 1120-S, Schedule K, Line 13a, Low-income housing credit (section 42(j)(5)), has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 8586 is required.
-
If Form 1120-S, Schedule K, Line 13b, Low-income housing credit (other), has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 8586 is required.
-
If Form 1120-S, Schedule K, Line 13f, Biofuel producer credit, has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 6478, Biofuel Producer Credit, (Credit for Alcohol Used as Fuel, for 2012 - 2007), is required. If Form 6478 is not attached, correspond with the taxpayer for the missing form.
-
Check Form 6478, Line 4 against Schedule K, Line 13f.
-
If the amounts agree, continue processing the return.
-
If there is a discrepancy, edit the amount from Form 6478, Line 4 to Schedule K, Line 13f.
-
-
If Form 1120-S, Schedule K, line 13g, Other credits, has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 8936, Schedule A, Clean Vehicle Credits, is required. If Form 8936, Schedule A is not attached, correspond using Letter 118C, Corporate Return Incomplete for Processing: Form 1120, Form 1120 Series, Form 1120-S, for the missing form for tax periods ending 202301 and subsequent.
-
Line 14 - No editing is required. Accept taxpayer’s entry.
-
If Form 1120-S, Schedule K, Line 16f*, Foreign taxes paid or accrued, has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, edit an Audit Code "2" in the left margin near Line 9 (Deductions area) *(Schedule K prior year line numbers: 2020 - 2018: Line 14p, 2017 - 2004: Line 14l). See IRM 3.11.217.13.1, Audit Codes.
-
If Form 1120-S, Schedule K, Line 16f*, Foreign taxes paid or accrued, has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, edit an Audit Code "7" in the left margin near Line 9 (Deductions area). *(Schedule K prior year line numbers: 2020 - 2018: Line 14p, 2017 - 2004: Line 14l.) See IRM 3.11.217.13.1, Audit Codes.
-
These instructions are only valid for Tax Periods 201712 - 202012.
-
If Form 1120-S, Schedule K, Line 14r, Other foreign tax information, shows a significant entry with the notation "Section 965" or similar language (202012 - 201712 form revisions), edit Computer Condition Code (CCC) "J" and Action Code 460 (Management Suspense).
-
Form 1120-S, Schedule K-1, Box 14, with Code U (202012 - 201712 form revisions) may show a Section 965 return. See IRM 3.0.101 ,Schedule K-1 Processing, for complete instructions to edit and process Schedules K-1.
-
See IRM 3.11.217.2.11, Section 965 Returns (201712 through 202012), IRM 3.11.217.14.7, CCC J - Section 965 Tax, and IRM 3.11.217.3.1, Action Codes, for more information.
-
If Form 1120-S, Schedule K, Line 17d, Other items and amounts, shows a significant entry with the notation "Section 965" or similar language, edit Computer Condition Code (CCC) "J" and Action Code 460 (Management Suspense).
-
Form 1120-S, Schedule K-1, Box 17, with Code AD may show a Section 965 return. See IRM 3.0.101, Schedule K-1 Processing, for complete instructions to edit and process Schedules K-1.
-
Correspond with the taxpayer for missing or blank Schedule L, Balance Sheets per Books, unless the return meets any of the following conditions:
-
Tax periods 0712 and prior.
-
Amended return (CCC "G" ).
-
Final return.
-
Page 2, Schedule B, Line 11 (prior years: 2017 - 2012: Line 10) is checked "Yes" .
-
There are no significant entries on Page 1, Lines 1 through 22 (Lines 1 through 20 2022 prior year form revision).
-
Page 1, Box F, Total assets and Line 1a, Gross receipts or sales, have a "-" (dash), "None" , "N/A" , or some similar entry or is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
-
Schedule L is crossed out or annotated "0" (zero), "-" (dash), "None" , "N/A" , or some similar entry.
-
Schedule B, Line 1 (Check accounting method) - The "Cash" box on Schedule B is checked or the taxpayer has notated "Single Entry Records" , "See Books" , "Balance Sheet not available" , or similar entry.
-
-
If the "Yes" box on Form 1120-S, Schedule B, Line 11* is checked and Total assets, (Page 1, Box F)** ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡and Gross receipts or sales, (Page 1, Line 1a)*** ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, delete (slash (/)) Schedule L. (For example, if either "Total assets" or "Gross receipts or sales" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, do not delete Schedule L, Balance Sheets per Books.)
*Schedule B, Line 10 (prior years: 2017 - 2012: Line 10).
**Page 1, Box F.
***Page 1, Line 1a. -
The following information is transcribed from Form 1120-S, Page 4, Schedule L, Balance Sheets per Books. No action is necessary to perfect these amounts. Accept the taxpayer's entry:
-
Loans to Shareholders, end of year. Schedule L, Line 7 (d).
-
Total Assets, beginning of year. Schedule L, Line 15 (b).
-
Loans from Shareholders, end of year. Schedule L, Line 19 (d).
-
Capital Stock, end of year. Schedule L, Line 22 (d).
-
Additional Paid-In Capital, end of year. Schedule L, Line 23 (d).
-
Retained Earnings, end of year. Schedule L, Line 24 (d).
-
-
This subsection provides instructions for Form 1120-S , Schedule M-1, Reconciliation of Income (Loss), and Schedule M-2, Analysis of Accumulated Adjustments Account.
-
The following information is transcribed from Schedule M-1, Reconciliation of Income (Loss), Form 1120-S, Page 5 (Page 4 for prior years).
-
Schedule M-1, Line 3(b) - Travel and Entertainment. Accept taxpayer's entry.
-
The following information is transcribed from Schedule M-2, Analysis of Accumulated Adjustments Account, Form 1120-S, Page 5 (Page 4 for prior years).
-
Schedule M-2, Line 1, Column (a) - Balance at beginning of tax year. Accept taxpayer's entry.
-
Schedule N is valid for tax periods beginning 01-01-2000. Delete Schedule N if the tax period begins before 01-01-2000.
-
S Corporations that, at any time during the tax year, have assets in or operate a business in a Foreign Country or U.S. possession may have to file Schedule N.
-
Do not correspond if Schedule N is missing. Dummy a Schedule N and edit the applicable entries when Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, or Form 8873, Extraterritorial Income Exclusion, is attached to the tax return.
-
If Schedule N is present and has no entries, do not correspond.
-
If more than one Schedule N is attached, combine the information from all Schedules N, including all subsidiaries and:
-
Edit to the first Schedule N that has the EIN of the return being processed. "Staple up" any remaining Schedules N, or
-
Dummy and edit Schedule N, for the parent return if one is not present on a consolidated return.
-
-
See IRM 3.11.217.15.1(1), Sequence of Return - Form 1120-S, for the sequence order of Schedule N.
-
Form 8858 (Revision 12-2018), Information Return of U.S. Persons With Respect To Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs), must be filed by U.S. persons with respect to FDEs and FBs. Also, Form 8858 (Revision 12-2018) must be filed by U.S. persons with respect to FDEs and FBs owned by certain controlled foreign corporations or controlled foreign partnerships.
-
Edit Audit Code "2" if:
-
Schedule N (Form 1120), Question 1a is answered "Yes" , or
-
Form 8858 is present.
-
-
No entry is required for Schedule N, Line 2 unless Form 8865 is present.
-
Edit Line 2 as follows:
Schedule N (Form 1120), Line 2
If And Then A number is present for Schedule N, Line 2, Take no further action. Schedule N, Line 2 is blank, Form(s) 8865 is attached, Edit the number of Forms 8865 in the dotted line area of Line 2. Form 8865 is attached, Schedule N is not present, Dummy a Schedule N and edit the number of Forms 8865 to Schedule N, Line 2. -
Edit Audit Code "2" if Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, is attached. See IRM 3.11.217.13.1, Audit Codes.
-
Edit Audit Code "2" if Schedule N (Form 1120), Question 3 is answered "Yes" or Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, is attached. See IRM 3.11.217.13.1, Audit Codes.
-
Line 4a is "Reserved for future use" .
-
For prior year returns (2020 and prior revisions), edit Audit Code "2" if Schedule N, Question 4a is answered "Yes" .
-
-
Line 4b - Edit Audit Code "2" if Form 5471 is attached. See IRM 3.11.217.13.1, Audit Codes.
-
No entry is required for Schedule N, Line 4b unless Form 5471 is present.
-
Edit Line 4b as follows:
Schedule N (Form 1120), Line 4
If And Then A number is present for Schedule N, Line 4b, Take no further action. Schedule N, Line 4b is blank, Form(s) 5471 is attached, Edit the number of Forms 5471 in the dotted line area of Line 4b. Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, is attached, Schedule N is not present, Dummy a Schedule N and edit the number of Forms 5471 to Schedule N, Line 4b.
-
Edit Audit Code "2" if Schedule N (Form 1120), Question 5 is answered "Yes" . See IRM 3.11.217.13.1, Audit Codes.
-
Edit Schedule N (Form 1120), Line 6b as follows:
Schedule N (Form 1120), Line 6b
If And Then The taxpayer has entered the name of a Foreign Country in Line 6b, Write the two letter Country Code to the left of Line 6b. See Acceptable Foreign Countries in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries. No Foreign Country is present or "US" , "USA" , "America" , or similar reference to the United States is present, Question 6a is checked "Yes" , Edit Other Country Code, "OC" . More than one Foreign Country is present, Edit the Country Code of the first Foreign Country shown.
-
Edit Audit Code "2" if Schedule N (Form 1120), Question 7a is answered "Yes" . See IRM 3.11.217.13.1, Audit Codes.
-
No entry is required for Schedule N (Form 1120), Line 7b unless Form 8873, Extraterritorial Income Exclusion, is present.
-
Edit Line 7b as follows:
Schedule N (Form 1120), Line 7b
If And Then A number is present for Schedule N, Line 7b, Form(s) 8873 is attached, Process Form 8873, Extraterritorial Income Exclusion, per IRM 3.11.217.29, Form 8873, Extraterritorial Income Exclusion. A number is present for Schedule N, Line 7b, Form(s) 8873 are not attached, Take no further action. Schedule N, Line 7b is blank, Form(s) 8873 is attached, -
Edit the number of Forms 8873 in the dotted line area of Line 7b.
-
Process Form 8873 per IRM 3.11.217.29, Form 8873, Extraterritorial Income Exclusion.
Form 8873 is attached, Schedule N is not present, -
Dummy a Schedule N and edit the number of Forms 8873 to Line 7b of Schedule N.
-
Process Form 8873 per IRM 3.11.217.29, Form 8873, Extraterritorial Income Exclusion.
-
-
No entry is required for Schedule N (Form 1120), Line 7c unless Form 8873 is present.
-
Edit Line 7c as follows:
Schedule N (Form 1120), Line 7c
If And Then An amount is present for Schedule N, Line 7c, Form 8873 is attached, Process Form 8873 per IRM 3.11.217.29, Form 8873, Extraterritorial Income Exclusion. An amount is present for Schedule N, Line 7c, Form 8873 is not attached, Take no further action. Schedule N, Line 7c is blank, Form(s) 8873 is attached, -
Compute the total amount of extraterritorial income exclusion from Line 52 and edit to the area provided on Line 7c.
-
Process Form 8873 per IRM 3.11.217.29, Form 8873, Extraterritorial Income Exclusion.
Form 8873 is present with a significant entry on Line 52. Schedule N is not attached, -
Dummy a Schedule N and compute the total amount of extraterritorial income exclusion from all attached Forms 8873. Edit the total to the area provided on Schedule N, Line 7c.
-
Process Form 8873 per IRM 3.11.217.29, Form 8873, Extraterritorial Income Exclusion.
-
-
For Tax Year (TY) 202201 and later, Form 8938, Statement of Specified Foreign Financial Assets, will be transcribed into the General Purpose Programming (GPP) database. If Form 8938 is attached, see IRM 3.11.217.45, Form 8938, Statement of Specified Foreign Financial Assets, for more information.
-
If Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation, is attached to Form 1120-S, compute Line 18a, Total Gross Rents, when there are entries on Page 1, Line 2, Columns A through D or Page 2, Line 2, Columns E through H. Edit Form 8825 in positive amounts in dollars only as follows:
-
See IRM 3.11.217.15.1(1), Sequence of Return - Form 1120-S, for the sequence order of Form 8825.
Form 8825
If And Then Only one Form 8825 is attached, Line 18a is negative, "X" the negative amount. Only one Form 8825 is attached, Line 18a is blank, Compute and enter a positive amount on Line 18a. See Figure 3.11.217-24, Example of Editing Form 8825. Multiple Forms 8825 are attached, Only one Form 8825 has an entry on Line 18a, -
Accept positive taxpayer entry ("X" negative amount).
-
Place Form 8825 in sequence order if Line 18a has a positive amount.
-
"X" the remaining Form 8825.
Multiple Forms 8825 are attached, More than one Form 8825 has an entry on Line 18a or Line 18a is blank, -
Add all Form 8825, Line 2 amounts together.
-
If positive, edit the amount(s) to Line 18a of the first Form 8825.
-
"X" the remaining Forms 8825.
-
Place edited Form 8825 in sequence order.
-
-
Document Perfection is responsible for processing Part I, "Elections and Other Information" of Form 8873. Elections are identified by inputting Command Code (CC) REQ77 / FRM77 with Transaction Code (TC) "971" and IDRS Action Code 361, 362, or 363 depending on which election was made.
-
If Part I, Lines 1 through 3 of the Form 8873, are not checked, then no "TC 971" needs to be entered on IDRS.
-
Edit Schedule D, (Form 1120-S) Capital Gains and Losses and Built-in Gains:
Schedule D (Form 1120-S)
If Then All of the following conditions apply: -
Form 1120-S is for 201212 tax year or later and
-
The Schedule D is a 2012 or later revision and
-
Significant entries are present on one or more of the transcription lines or checkbox is marked.
-
Transcription lines for 2019 and subsequent are as follows:
-
Transcription lines for 2018 through 2013 are as follows:
-
Part I, Line 1a, Columns (d) and (e),
-
Part I, Lines 1b - 3, Columns (d), (e), and (g)
-
Part II, Lines 8a, Columns (d) and (e),
-
Part II, Lines 8b - 10, Columns (d), (e), and (g),
-
Line 13.
-
-
-
Place Schedule D in sequence order.
-
Edit Schedule D in dollars only.
-
For 2013 and later Schedule D revisions:
-
"X" any negative transcription entries, except the following: Lines 1b(g), 2(g), 3(g), 8b(g), 9(g), and 10(g). These lines can be positive or negative.
-
-
For 2012 Schedule D revisions:
-
"X" any negative transcription entries.
-
Change Page 1, Part I, Line 1 to Line 1b and,
-
Change Page 1, Part II, Line 8 to Line 8b.
-
Criteria above is not met, Cross-out or slash Schedule D. -
-
See IRM 3.11.217.15.1(1), Sequence of Return - Form 1120-S, for the sequence order of Schedule D.
-
Line 1b - No editing is required. See IRM 3.11.217.16.3, Line 4 - Net Gain (Loss), for more information.
-
Line 1c - No editing is required. See IRM 3.11.217.16.3, Line 4 - Net Gain (Loss), for more information.
-
Place Form 4797, Sales of Business Property, in sequence order if significant entries are present on Line 1b or Line 1c (2021 and later form revisions). See IRM 3.11.217.15.1(1), Sequence of Return - Form 1120-S, for the sequence order of Form 4797.
-
Form 8949, Sales and other Dispositions of Capital Assets, is valid for tax periods 201712 and later. See Figure 3.11.217-25, Example of Editing Form 8949.
-
If the taxpayer has entered a "Z" or "Y" in any of the rows in either Part I, Line 1, Column (f), or Part II, Line 1, Column (f), of Form 8949, then edit CCC "M" .
-
If the taxpayer has entered a "Z" in any of the rows from Part I, Line 1, Column (f), then edit Form 8949 as follows:
-
Place Form 8949 in sequence order if significant entries are present. See IRM 3.11.217.15.1(1), Sequence of Return - Form 1120-S. If there is more than one Form 8949 attached, then sequence the Form 8949 with the Part I edited data first.
-
Underline the EIN (Column (a)) from the first row with a "Z" present in Column (f) if EIN is present.
-
Underline the Date Acquired (Column (b)) from the first row with a "Z" present in Column (f) if the day, month, and year are present.
-
Underline the dollar amount (Column (g)) from the first row with a "Z" present in Column (f) if the money amount is present.
-
If the taxpayer has shown more than one row with a "Z" in Column (f), then edit "Z-1" to the right margin of Part I, Line 1 of Form 8949.
-
-
If the taxpayer has entered a "Y" in any of the rows from Part I, Line 1, Column (f), then edit the Form 8949 as follows:
-
Place the form in sequence order. If there are more than one Form 8949 attached, then sequence the Form 8949 with the edited data.
-
Underline the EIN (Column (a)) from the first row with a "Y" in Column (f) if the EIN is present.
-
Underline the Date Sold or Disposed Of (Column c)) from the first row with a "Y" in Column (f) if the Date Sold or Disposed Of is present.
-
Underline the dollar amount (Column g)) from the first row with a "Y" in Column (f) if a money amount is present.
-
If the taxpayer has shown more than one row with a "Y" in Column (f), then edit "Y-1" to the right margin of Part I, Line 1, Row 1 of Form 8949.
-
If "Z-1" was edited, then edit "Y-1" under "Z-1" .
-
-
If the taxpayer has entered a "Z" in any of the rows from Part II, Line 1, Column (f) then edit Form 8949 as follows:
-
Place the form in sequence order. See IRM 3.11.217.15.1(1), Sequence of Return - Form 1120-S. If there is more than one Form 8949 attached, then sequence the Form 8949 with the Part I edited data first followed by the Part II edited data.
-
Underline the EIN (Column (a)) from the first row with a "Z" present in Column (f) if EIN is present.
-
Underline the Date Acquired (Column (b)) from the first row with a "Z" present in Column (f) if the day, month, and year are present.
-
Underline the dollar amount (Column (g)) from the first row with a "Z" present in Column (f) if a money amount is present.
-
If the taxpayer has shown more than one row with a "Z" in Column (f), then edit "Z-1" to the right margin of Part II, Line 1, Row 1 of Form 8949.
-
-
If the taxpayer has entered a "Y" in any of the rows from Part II, Line 1, Column (f), then edit the Form 8949 as follows:
-
Place the form in sequence order. If there are more than one Form 8949 attached, then sequence the Form 8949 with the Part I edited data first and then the Part II edited data.
-
Underline the EIN (Column (a)) from the first row with a "Y" in Column (f) if the EIN is present.
-
Underline the Date Sold or Disposed Of (Column (c)) from the first row with a "Y" in Column (f) if Date Sold or Disposed Of is present.
-
Underline the dollar amount (Column (g)) from the first row with a "Y" in Column (f) if money amount is present.
-
If the taxpayer has shown more than one row with a "Y" in Column (f), then edit "Y-1" to the right margin of Part II, Line 1, Row 1 of Form 8949.
-
If "Z-1" was edited, then edit "Y-1" under "Z-1" .
-
-
Form 8996, Qualified Opportunity Fund, is valid for tax periods ending 201712 and later. The table below compares Form 8996 line numbers based on the tax year of the return:
2021 and later 2020 2019 2018 and 2017 Line 5 Line 5 Line 5 N/A Line 6 N/A N/A N/A Line 7 Line 7 Line 6 Line 5 Line 8 Line 8 Line 7 Line 6 Line 10 Line 10 Line 9 Line 8 Line 11 Line 11 Line 10 Line 9 Line 14 Line 14 Line 13 Line 12 Line 15 Line 15 Line 14 Line 13 -
Place Form 8996 in sequence order if significant entries are present on any of the lines listed in a through h below. See IRM 3.11.217.15.1(1), Sequence of Return - Form 1120-S, for the sequence order of Form 8996.
-
Part I, Line 5 checkbox is marked.
-
Part I, Line 6 - Reserved for future use.
-
Part II, Line 7 - Total QOZ property held by the taxpayer on the last day of the first 6-month period of the taxpayer’s tax year.
-
Part II, Line 8 - Total assets held by the taxpayer on the last day of the first 6-month period of the taxpayer’s tax year.
-
Part II, Line 10 - Total QOZ property held by the taxpayer on the last day of the taxpayer’s tax year.
-
Part II, Line 11 - Total assets held by the taxpayer on the last day of the taxpayer’s tax year.
-
Part III, Line 14 - Perfect Line 14 as follows:
- Edit the Line 14 percent in 0.00 format. For example, edit 50 percent as 0.50.
- If the percent is greater than 1.00, "X" the percentage amount on Line 14. For example, if the percentage shown is 1.23. -
Part III, Line 15 - Perfect Line 15 as follows:
- If Form 8996, Part III, Line 15 is blank and Part IV, Line 8 has an amount, edit Part IV, Line 8 to Part III, Line 15 in dollars cents.
-
-
If Form 8996, Qualified Opportunity Fund, is attached, then edit Return Processing Code (RPC) "6" . See IRM 3.11.217.13.7 Return Processing Code (RPC), for more information.
-
Place Form 1125-A, Cost of Goods Sold, in sequence order if entries are present on Line 1 or Line 7. See IRM 3.11.217.15.1, Sequence of Return - 1120-S.
-
Edit Form 1125-A in dollars only.
-
Form 1125-A Line 1 - Inventory at the beginning of the year. Accept taxpayer's entry. If Line 1 is blank, edit from the taxpayer's attachment (if present).
-
Form 1125-A Line 3 - Cost of labor. No specific editing is necessary, but an entry on this line is indicative of a Salary and Wage Code condition. See IRM 3.11.217.17.3, Salary and Wage Code.
-
Form 1125-A Line 7 - Inventory at the end of the year. Accept taxpayer's entry. If Line 7 is blank, edit from the taxpayer's attachment (if present).
-
Form 1125-Amust be dummied if missing and if Line 1 or Line 7 are able to be edited. Use instructions in (2) through (5) above to edit lines. Place dummy Form 1125-A in sequence order.
-
See IRM 3.11.217.15.1(1), Sequence of Return - Form 1120-S, for the sequence order of Form 1125-A.
-
If Form 4136, Credit for Federal Tax Paid on Fuels, is missing and a significant entry is claimed on Form 1120-S, Page 1, Line 24c for a Fuel Tax Credit, correspond with the taxpayer for the missing Form 4136.
-
If a fuel credit claim is found on other than the correct line on the return, and Form 4136 is attached, adjust incorrect entry before editing Fuel Tax Credits.
-
Form 4136 needs to be placed in sequence order.
-
If Fuel Tax Credit is claimed on Page 1, Form 1120-S and Form 4136 is attached, perfect Column (d) as necessary. Column (d) must equal Line 17 of Form 4136. If perfection is not possible, correspond.
-
Code and Edit is no longer required to renumber the lines on prior year Form 4136 to current year format. Column (d), Amount of credit, is transcribed using the corresponding Credit Reference Number (CRN) in Column (e).
-
See IRM 3.11.217.15.1(1), Sequence of Return - Form 1120-S, for the sequence order of Form 4136.
-
This credit was used for tax periods 200612 - 200711 when claiming credit on Form 8913, Credit for Federal Telephone Excise Tax Paid Only Tax Return. No editing is required.
-
Place Form 8941, Credit for Small Employer Health Insurance Premiums, in sequence order if significant entries are present.
-
Significant entries are present on one or more of the transcription lines (T lines). Transcription lines are shown in the Transcription Line Table below.
Transcription Line
Transcription Line Description A Small Business Health Options Program (SHOP) Marketplace Box - Did you pay premiums during your tax year for employee health insurance coverage you provided through a Small Business health Options Program (SHOP) Marketplace (or do you qualify for an exception to this requirement)? B Employer Identification Number (EIN) - Enter the employer identification number (EIN) used to report employment taxes for individuals included on Line 1 below if different from the identifying number listed above. C Does a tax return you (or any predecessor) filed for a tax year beginning in 2014 include a Form 8941, Credit for Small Employer Health Insurance Premiums, with Line A checked "Yes" and Line 12 showing a positive amount? 1 Enter the number of individuals you employed during the tax year who are considered employees for purposes of this credit (total from Worksheet 1, Column (a)). 2 Enter the number of full-time equivalent employees (FTEs) you had for the tax year (from Worksheet 2, Line 3). If you entered 25 or more, skip Lines 3 through 11 and enter -0- on Line 12. 3 Average annual wages you paid for the tax year (from Worksheet 3, Line 3). This amount must be a multiple of $1,000. 4 Premiums you paid during the tax year for employees included on Line 1 for health insurance coverage under a qualifying arrangement (total from Worksheet 4, Column (b)). 5 Premiums you would have entered on Line 4 if the total premium for each employee equaled the average premium for the small group market in which the employee enrolls in health insurance coverage (total from Worksheet 4, Column (c)). 10 Enter the total amount of any state premium subsidies paid and any state tax credits available to you for premiums included on Line 4 (see instructions). 13 If Line 12 is zero, skip Lines 13 and 14 and go to Line 15. Otherwise, enter the number of employees included on Line 1 for whom you paid premiums during the tax year for health insurance coverage under a qualifying arrangement (total from Worksheet 4, Column (a)). 14 Enter the number of FTEs you would have entered on Line 2 if you only included employees included on Line 13 (from Worksheet 7, Line 3). 15 Credit for small employer health insurance premiums from partnerships, S corporations, cooperatives, estates, and trusts (see instructions). 16 Add Lines 12 and 15. Cooperatives, estates, and trusts, go to Line 17. Tax-exempt small employers skip Lines 17 and 18 and go to Line 19. Partnerships and S corporations, stop here and report this amount on Schedule K. All others, stop here and report this amount on Form 3800, Part III, Line 4h. -
For prior year Form 8941, Credit for Small Employer Health Insurance Premiums, revisions, if significant amounts/entries are present on Form 8941, see Form 8941 Prior Year Revision Table below.
Form 8941 Prior Year Revision
Form 8941 Prior Year Revision Action 2013 -
Change Line 1a to Line 1
-
Change Line 1b to Line B
2012 -
Change Line 1a to Line 1
-
Change Line 1b to Line B
See IRM 3.11.217.46, Form 1120-S Prior Year Conversion Charts, for more prior year information. -
-
See IRM 3.11.217.15.1(1), Sequence of Return - Form 1120-S, for the sequence order of Form 8941.
-
The status of Form 5884-B, New Hire Retention Credit, is historical and was valid March 19, 2010, to December 31, 2010 (Tax Periods 2010 and 2011).
-
Form 3800, General Business Credit, is valid for tax periods ending in 202301 and later. Part III, which may be attached to Form 1120-S, is transcribed to support the Elective payment election (EPE) on Line 24d.
-
Place in sequence order if entries are present on any of the transcription lines listed below. See IRM 3.11.217.15.1, Sequence of Return - Form 1120-S, for more information.
-
The followings lines are transcribed from Form 3800 Part III (Data will enter):
Form 3800, Part and Line Credit From Form Title Columns transcribed Part III, Line 1b Form 7207 Advanced Manufacturing Production Credit b, f, g, h, j Part III, Line 1d Form 3468, Part III Investment Credit b, f, g Part III, Line 1f Form 8835, Part II Renewable Electricity Production Credit b, f, g Part III, Line 1g Form 7210 Clean Hydrogen Production Credit b, f, g, h, j Part III, Line 1o Form 3468, Part IV Investment Credit b, g, h, j Part III, Line 1q Form 7218, Part II Clean Fuel Production Credit b, f, g Part III, Line 1s Form 8911, Part I Alternative Fuel Vehicle Refueling Property Credit b, f, g Part III, Line 1u Form 7213, Part II Nuclear Power Production Credit b,f, g Part III, Line 1v Form 3468, Part V Investment Credit b, f, g Part III, Line 1x Form 8933 Carbon Oxide Sequestration Credit b, f, g, h, j Part III, Line 1aa Form 8936, Part V Clean Vehicle Credits b, g Part III, Line 1gg Form 7211, Part II Clean Electricity Production Credit b, f, g Part III, Line 4a Form 3468, Part VI Investment Credit b, f, g Part III, Line 4e Form 8835, Part II Renewable Electricity Production Credit b, f, g -
Edit indicator "1" in the bottom right margin of Form 3800, page 4, Part III when Form 3800, Part V, column b (Elective Payment or Transfer Registration Number) has significant data. See Figure 3.11.217-27, Example of Editing Form 3800, General Business Credit, Part V, Indicator below.
-
Correspond with Letter 118C, if Form 3800, General Business Credit, is not attached and the EPE credit claimed is≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Form 1120-S, line 24d. Edit Action Code "211" .
-
For prior year conversion instructions, see Exhibit 3.11.217-9, Form 3800 - Prior Year Revisions Comparison Chart.
-
Form 6252, Installment Sale Income, is valid for tax periods ending in 201712 and later.
-
Only one Form 6252 can be processed. If multiple forms are attached, process the first one with significant transcription entries and delete the others.
-
Place Form 6252 in sequence order if entries are present on any of the transcription lines listed below. See IRM 3.11.217.15.1(1), Sequence of Return - Form 1120-S, for the sequence order of Form 6252.
Note:
Part II, Line 19 is the only line that requires editing, however, an Installment Sale Indicator must be determined from Line 3. See IRM 3.11.217.13.3, Installment Sale Indicator.
-
Line 1 - Description of Property - Taxpayer may enter a code and a description of installment sale property as described in the table below. No editing is required.
Indicator Description of property 1 Sale property is Timeshare or residential lot 2 Sale by an individual of personal use property (within the meaning of Section 1275(b)(3)) 3 Sale of any property used or produced in the trade or business of farming (within the meaning of Section 2032A(e)(4) or (5)) 4 Other - All other installment sales not listed -
Line 2a - Date acquired.
-
Line 2b - Date sold.
-
Line 3 - Information is used to determine the Installment Sale Indicator - Edit "3 -" followed by the appropriate Installment Sale Indicator code in the left margin of Form 1120-S, Page 1, near line 9 when Form 6252 is present (e.g., "3 - 1" ). Valid Installment Indicator codes are as follows:
Code One Form 6252 More than one Form 6252 1 "Yes" response to Question 3, At least one form has a "Yes" response. 2 "No" response to Question 3, All "No" responses, or a combination of "No" and/or blank responses. 3 "Yes" and "No" are checked or Question 3 is blank, Question 3 is blank on all forms. -
Part I, Line 7 - Subtract Line 6 from Line 5.
-
Part II, line 19 - Gross Profit Percentage. If Line 19 is not in 0.0000 format, edit the percentage as follows:
Taxpayer’s Entry Edit 50 percent 0.5000 .123 0.1230 .12345 0.1234 -
Part II, Line 21 - Payments received during year.
-
Part II, Line 23 - Payments received in prior years.
-
-
See IRM 3.11.217.13.3, Installment Sale Indicator, for more information.
-
Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, is valid for tax periods ending 201901 and later.
-
Place Form 8997 in sequence order if the form is attached and significant entries are present in any of Parts I, II, III or IV.
-
No editing is required except for the indicator in Parts I, II, III or IV. Transcription is from Row 1 of each part.
-
Part I - Total QOF Investment Holdings due to Deferrals Prior to Beginning of Tax Year (Row 1).
-
Column a - QOF EIN.
-
Column b - Date QOF Investment acquired.
-
Column d - Special gain code.
-
Column e - Amount of short-term deferred gain remaining in QOF.
-
Column f - Amount of long-term deferred gain remaining in QOF.
-
Part I Indicator - If more than one row of tax data is present in Part I, edit "1" in the right margin of Part I, row 1.
-
Line 2, Column e - total amount.
-
Line 2, Column f - total amount.
-
-
Part II - Current Tax Year Capital Gains Deferred by Investing in QOF (Row 1).
-
Column a - QOF EIN.
-
Column b - Date QOF investment acquired.
-
Column d - Special gain code.
-
Column e - Amount of short-term deferred gain remaining in QOF.
-
Column f - Amount of long-term deferred gain remaining in QOF.
-
Part II Indicator - If more than one row of tax data is present in Part II, edit "1" in the right margin of Part II, Row 1.
-
Line 2, Column e - total amount.
-
Line 2, Column f - total amount.
-
-
Part III - Inclusion Events and Certain Other Transfers During the Current Tax Year (Row 1).
-
Column a - QOF EIN.
-
Column b - Date of event.
-
Column d - Special gain code.
-
Column e -Amount of previously deferred short-term gain now included in taxable income.
-
Column f - Amount of previously deferred long-term gain now included in taxable income.
-
Part III Indicator - If more than one row of tax data is present in Part III, edit "1" in the right margin of Part III, row 1.
-
Line 2, Column e - total amount.
-
Line 2, Column f - total amount.
-
-
Part IV - Total QOF Investments Due to Deferrals at Year End (Row 1).
-
Column a - QOF EIN.
-
Column b - Date QOF Investment acquired.
-
Column d - Special gain code.
-
Column e - Amount of short-term deferred gain invested in QOF.
-
Column f - Amount of long-term deferred gain invested in QOF.
-
Part IV Indicator - If more than one row of tax data is present in Part IV, edit "1" in the right margin of Part IV, row 1.
-
Line 2, Column e total amount.
-
Line 2, Column f total amount.
-
-
If Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, is attached, edit Return Processing Code (RPC) "9" . See IRM 3.11.217.13.7, Return Processing Code (RPC), for more information.
-
Sequence up to two Form 8936, Schedule As. See IRM 3.11.217.15.1, Sequence of Return - Form 1120-S, for more information.
-
The following lines will be transcribed from the first two Form 8936, Schedule As attached.
-
Part I, Line 2, Vehicle identification number (VIN)
-
Part I, Line 3, Placed in service date
-
Part II, Line 9, Tentative credit amount
-
Part II, Line 11, Credit amount for business use of new clean vehicle
-
Part IV, Line 17, Smaller of line 15 or line 16
-
Part V, Line 26, Smaller of line 24 or line 25
-
-
If more than two Forms 8936, Schedule A are attached, edit an indicator of "1" on page 3 of the second Form 8936, Schedule A in the bottom right margin. See Figure 3.11.217-28
-
If Form 8936, Schedule A, is not attached and the Clean Vehicle Credit (CVC) claimed on Form 1120-S, Schedule K, line 13g is ≡ ≡ ≡ ≡ ≡ ≡ ≡ then correspond for the missing Form 8936, Schedule A.
-
Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties, is valid for tax period ending 202401 and later.
-
Place Form 4255 in sequence order if the form is attached and significant entries are present in Part I, columns (s) or (t). See IRM 3.11.217.15.1, Sequence of Return - Form 1120-S, for the sequence order of Form 4255.
-
No editing is required. The following lines will be transcribed from Form 4255.
-
Part I, line 1a, column (s) - Form 7207, Recapture of Net EPE and 100% Excessive payment. Add columns (l) and (n).
-
Part I, line 1a, column (t) - Form 7207, 20% Excessive payment, Prevailing wage, and apprenticeship penalties. Add columns (o) and (p).
-
Part 1, line 1c, column (s) - Form 7210, Recapture of Net EPE and 100% Excessive payment. Add columns (l) and (n).
-
Part 1, line 1c, column (t) - Form 7210, 20% Excessive payment, Prevailing wage, and apprenticeship penalties. Add columns (o) and (p).
-
Part I, line 1d, column (s) - Form 3468, Part IV, Recapture of Net EPE and 100% Excessive payment. Add columns (l) and (n).
-
Part I, line 1d, column (t) - Form 3468, Part IV, 20% Excessive payment, Prevailing wage, and apprenticeship penalties. Add columns (o) and (p).
-
Part 1, line 2a, column (s) - Form 8933, Recapture of Net EPE and 100% Excessive payment. Add columns (l) and (n).
-
Part I, line 2a, column (t) - Form 8933, 20% Excessive payment, Prevailing wage, and apprenticeship penalties. Add columns (o) and (p).
-
-
All Form 1120-S filers must complete and file Schedule K-1, Shareholder’s Share of Income, Deductions, Credits, etc., and attach it to the Form 1120-S. If no Schedules K-1 are attached, follow the procedures listed below:
-
Do not correspond for Schedule K-1 if:
-
Section 965 Returns - See IRM 3.11.217.2.11, Section 965 Returns (201712 through 202012), for more information.
-
Form 1120-S is a TY2021 and prior tax period.
-
Form 1120-S, Line 22 (line 21 on Form 1120-S 2022 form revision and prior), Ordinary Business Income (Loss), ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
-
There are attachments to the return in a standard format which may be used as a Schedule K-1.
-
Re-entry return (Form 13596, Reprocessing Returns or Form 3893, Re-Entry Document Control, is attached to return).
-
Amended (CCC "G" ) return.
-
IRC 6020(b) return
-
Examination Secured "Substitute for Return" (SFR) returns.
-
There are no entries on Form 1120-S, Lines 1 through 22 (line 21 on Form 1120-S 2022 revision).
-
Form 1120-S has a Form 4251, Return Charge-Out, attached and is being processed as an original return
-
Payee is a foreign entity.
-
-
When correspondence with the taxpayer is required, see IRM 3.11.217.3.4.2, Issuing Correspondence.
-
If Schedule K-1, Line 15*, Alternative minimum tax (AMT) items, has an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, edit Tax Preference Code in the left margin near Line 9 (Deductions area) of Form 1120-S. See IRM 3.11.217.13.4, Tax Preference Code.
-
Form 1120-S, Schedule K-1, Box 10 (with code F), Box 12 (with code K), and Box 14 (with code U) may show a Section 965 return. See IRM 3.11.217.2.11, Section 965 Returns (201712 through 202012), for more information.
-
See IRM 3.0.101, Schedule K-1 Processing, for complete instructions to edit and process Schedules K-1.
-
See IRM 3.11.217.15.1, Sequence of Return - Form 1120-S, for the sequence order of Schedule K-1.
-
For Tax Year (TY) 202201 and later, Form 8938, Statement of Specified Foreign Financial Assets, will be transcribed into the General Purpose Programming (GPP) database.
-
Process Form 8938 with the following criteria:
-
If Form 8938 is attached, but does not meet the criteria in paragraph (2), edit CCC "2" and continue normal processing of the Form 1120-S. Do not sequence the form to the back of the return or place the form in a designated basket.
-
If the return meets the criteria in paragraph (2), process Form 8938 per the instructions below:
-
Completely edit Form 1120-S.
-
Edit CCC "2" .
-
Detach Schedules K-1.
-
Pull the Form 8938 from the return and sequence to the back of the last page of Form 1120-S (after schedules and attachment pages), attaching the Form 8938 so that it is back- to- back with the parent return.
-
Place the Form 1120-S in a designated basket.
-
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 value in Part V, Line 23; or highest asset value in Part VI, Line 32, and delete the others.
-
-
Form 1120-S with Form 8938 attached must be batched separately. The transcription of Form 8938 occurs under Program Code 43300 after the parent Form 1120-S is transcribed.
-
See IRM 3.11.217.15.1(1), Sequence of Return - Form 1120-S, for the sequence order of Form 8938.
-
The following charts show information for converting Form 1120-S, U.S. Income Tax Return for an S Corporation (and other applicable forms and schedules) to the current year form (and schedule).
Form 3800 Prior Year Conversion 2023
Form/Line Number Action Form 7207, Line 1b -
Change column (g) to (f)
-
Change column (i) to (j)
-
Change column (j) to column (g)
Form 3468, Line 1d -
Change column (g) to (f)
-
Change column (j) to (g)
Form 8835, Line 1f -
Change column (g) to (f)
-
Change column (j) to (g)
Form 7210, Line 1g -
Change column (g) to (f)
-
Change column (i) to (j)
-
Change column (j) to (g)
Form 3468, Part IV, Line 1o -
Change column (i) to (j)
-
Change column (j) to (g)
Form 8911, Part I, Line 1s -
Change column (g)
-
Change column (j) to (g)
Form 7213, Part II, Line 1u -
Change column (g) to (f)
-
Change column (j) to (g)
Form 8933, Line 1x -
Change column (g) to (f)
-
Change column (i) to (j)
-
Change column (j) to (g)
Form 8936, Part V, Line 1aa -
Change column (j) to (g)
Form 3468, Part VI, Line 4a -
Change column (g) to (f)
-
Change column (j) to (g)
Form 8835, Part II, Line 4e -
Change column (g) to (f)
-
Change column (j) to (g)
Prior Year Conversion 2022 - 2021
Form/Schedule Action Form 1120-S -
Change line 19 to 20
-
Change line 20 to 21
-
Change line 21 to 22
-
Change line 22b to 23b
-
Change line 22c to 23c
-
Change line 23a to 24a
-
Change line 23b to 24b
-
Change line 23c to 24c
-
Change line 23d to 24z
-
Change line 24 to 25
-
Change line 25 to 26
-
Change line 26 to 27
-
Change line 27 to 28
Prior Year Conversion 2020 - 2018
Form/Schedule Action Form 1120-S -
Change Line 19 to Line 20
-
Change Line 20 to Line 21
-
Change Line 21 to Line 22
-
Change Line 22b to 23b
-
Change Line 22c to Line 23c
-
Change Line 23a to Line 24a
-
Change Line 23b to Line 24b
-
Change Line 23c to Line 24c
-
Change Line 23e to Line 24z
-
Change Line 24 to Line 25
-
Change Line 25 to Line 26
-
Change Line 26 to Line 27
-
Change Line 27 to Line 28
Form 8996 2020 -
Change Line 6 to Line 7
-
Change Line 7 to Line 8
-
Change line 9 to Line 10
-
Change Line 10 to Line 11
-
Change Line 13 to Line 14
-
Change Line 14 to Line 15
-
Change Line 5 to Line 7
-
Change Line 6 to Line 8
-
Change Line 8 to Line 10
-
Change Line 9 to Line 11
-
Change Line 12 to Line 14
-
Change Line 13 to Line 15
Prior Year Conversion 2017
Form/Schedule Action Form 1120-S -
Line 19 to Line 20
-
Line 20 to Line 21
-
Line 21 to Line 22
-
Line 22b to Line 23b
-
Line 22c to Line 23c
-
Line 23a to Line 24a
-
Line 23b to Line 24b
-
Line 23c to line 24c
-
Line 23d to Line 24z
-
Line 24 to Line 25
-
Line 25 to Line 26
-
Line 26 to Line 27
-
Line 27 to Line 28
Form 8996 2017 -
Change Line 5 to Line 7
-
Change Line 6 to Line 8
-
Change Line 8 to Line 10
-
Change Line 9 to Line 11
-
Change Line 12 to Line 14
-
Change Line 13 to Line 15
-
The table below lists commonly used acronyms, abbreviations, and their definitions.
Acronyms and Abbreviations
Acronyms and Abbreviations | Definition |
---|---|
ACA | Affordable Care Act |
ADP | Automatic Data Processing |
AM | Accounts Management |
AMRH | Accounts Maintenance Research |
APO | Army Post Office |
AUR | Automated Underreporter |
BBTS | Batch Block Tracking System |
BMF | Business Master File |
c/o | Care of |
C&E | Code and Edit |
CAS | Correspondence Action Sheet |
CBR | Case Base Reasoning |
CCC | Computer Condition Code |
CDP | Collection Due Process |
CFR | Code of Federal Regulations |
CI | Criminal Investigation |
CII | Correspondence Imaging Inventory |
CP | Computer Paragraph |
CSCO | Compliance Services Collection Operations |
DLN | Document Locator Number |
DPO | Diplomatic Post Office |
DPO | Document Perfection Operation |
EEFax | Enterprise Electronic Fax |
E-File | Electronic Filing |
e.g. | For Example |
EIN | Employer Identification Number |
EQSP | Embedded Quality Submission Processing |
EOCU | EO Compliance Unit |
ERS | Error Resolution System |
etc. | Et Cetera |
Exam | Examination |
FATCA | Foreign Account Tax Compliance Act |
Fax | Facsimile |
FB | Foreign Branches |
FDE | Foreign Disregarded Entities |
FedEx | Federal Express Corporation |
FPO | Fleet Post Office |
FRP | Frivolous Return Program |
FTF | Failure To File |
FTP | Failure To Pay |
GILTI | Global Intangible Low-Taxed Income |
GPP | General Purpose Programming |
HIRE | Hiring Incentives to Restore Employment |
http | HyperText Transfer (or Transport) Protocol |
ICS | Integrated Collection System |
ICT | Image Control Team |
ID | Identification or Identity |
IDRS | Integrated Data Retrieval System |
IMF | Individual Master File |
IPU | IRM Procedural Update |
IRC | Internal Revenue Code |
IRS | Internal Revenue Service |
ISRP | Integrated Submission and Remittance Processing |
IT | Information Technology |
KCSPC | Kansas City Submission Processing Campus or Kansas City Submission Processing Center |
LB&I | Large Business and International |
MeF | Modernized E-file |
MFT | Master File Tax |
MMDDYY | Month, Day, Year |
NAICS | North American Industry Classification System |
N/A | Not Applicable |
NDC | National Distribution Center |
OC | Other Country |
OID | Original Issue Discount |
OMB | Office of Management and Budget |
OSPC | Ogden Submission Processing Campus or Ogden Submission Processing Center |
PBA | Principal Business Activity |
PDS | Private Delivery Service |
P.L. | Public Law |
PTIN | Preparer Tax Identification Number |
POA | Power of Attorney |
P.O. | Post Office |
QSSS | Qualified Subchapter S Subsidiary |
R&C | Receipt and Control |
RD | Return Delinquency |
Rev. Proc. | Revenue Procedure |
RICS | Return Integrity and Compliance Services |
RO | Revenue officer |
RPC | Return Processing Code |
RRA98 | Restructuring and Reform Act of 1998 |
SBSE | Small Business Self-Employed |
SCAMPS | Service Center Automated Mail Processing System |
SCRIPS | Service Center Recognition Image Processing System |
SERP | Servicewide Electronic Research Program |
SFR | Substitute for Return |
SLA | Service Level Agreement |
SME | Subject Matter Expert |
SOI | Statistics of Income |
SP | Submission Processing |
SPDC | Submission Processing Design Center |
SSN | Social Security Number |
TAC | Taxpayer Assistance Center |
TAS | Taxpayer Advocate Service |
TBOR | Taxpayer Bill of Rights |
TC | Transaction Code |
TCJA | Tax Cuts and Jobs Act of 2017 |
TE | Tax Examiner |
TEGE | Tax Exempt and Government Entities |
TETR | Telephone Excise Tax Refund |
TIN | Taxpayer Identification Number |
TP | Taxpayer |
TPE | Tax Period Ending |
TRPRT | Tax Return Print |
TS | Taxpayer Services |
TY | Tax Year |
U.S. | United States |
UCC | Uniform Commercial Code |
UPS | United Parcel Service |
USC | United States Code |
USPS | United States Postal Service |
UWR | Unified Work Request |
ZIP | Zoning Improvement Plan |
Due Date Chart
Tax Period | Return Due Date (weekends and holidays considered) | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Extended Due Date - 6 months (weekends and holidays considered) |
---|---|---|---|
Jan. 2023 | 4-18-2023 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 10-16-2023 |
Feb. 2023 | 5-15-2023 | ≡ ≡ ≡ ≡ ≡ ≡ | 11-15-2023 |
Mar. 2023 | 6-15-2023 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 12-15-2023 |
Apr. 2023 | 7-17-2023 | ≡ ≡ ≡ ≡ ≡ | 1-16-2024 |
May 2023 | 8-15-2023 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 2-15-2024 |
Jun. 2023 | 9-15-2023 | ≡ ≡ ≡ ≡ ≡ ≡ | 3-15-2024 |
Jul. 2023 | 10-16-2023 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 4-15-2024 |
Aug. 2023 | 11-15-2023 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 5-15-2024 |
Sept. 2023 | 12-15-2023 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 6-17-2024 |
Oct. 2023 | 1-16-2024 | ≡ ≡ ≡ ≡ ≡ ≡ | 7-15-2024 |
Nov. 2023 | 2-15-2024 | ≡ ≡ ≡ ≡ ≡ ≡ | 8-15-2024 |
Dec. 2023 | 3-15-2024 | ≡ ≡ ≡ ≡ ≡ | 9-16-2024 |
Jan. 2024 | 4-16-2024 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 10-15-2024 |
Feb. 2024 | 5-15-2024 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 11-15-2024 |
Mar. 2024 | 6-17-2024 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 12-16-2024 |
Apr. 2024 | 7-15-2024 | ≡ ≡ ≡ ≡ ≡ ≡ | 1-15-2025 |
May 2024 | 8-15-2024 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 2-18-2025 |
Jun. 2024 | 9-16-2024 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 3-17-2025 |
Jul. 2024 | 10-15-2024 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 4-15-2025 |
Aug. 2024 | 11-15-2024 | ≡ ≡ ≡ ≡ ≡ ≡ | 5-15-2025 |
Sept. 2024 | 12-16-2024 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 6-16-2025 |
Oct. 2024 | 1-15-2025 | ≡ ≡ ≡ ≡ ≡ | 7-15-2025 |
Nov. 2024 | 2-18-2025 | ≡ ≡ ≡ ≡ ≡ ≡ | 8-15-2025 |
Dec. 2024 | 3-17-2025 | ≡ ≡ ≡ ≡ ≡ | 9-15-2025 |
Jan. 2025 | 4-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ | 10-15-2025 |
Feb. 2025 | 5-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 11-17-2025 |
Mar. 2025 | 6-16-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 12-15-2025 |
Apr. 2025 | 7-15-2025 | ≡ ≡ ≡ ≡ ≡ | 1-15-2026 |
May 2025 | 8-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ | 2-17-2026 |
June 2025 | 9-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 3-16-2026 |
July 2025 | 10-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 4-15-2026 |
Aug. 2025 | 11-17-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 5-15-2026 |
Sep. 2025 | 12-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 6-15-2026 |
Oct. 2025 | 1-15-2026 | ≡ ≡ ≡ ≡ ≡ ≡ | 7-15-2026 |
Nov. 2025 | 2-17-2026 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 8-17-2026 |
Dec. 2025 | 3-16-2026 | ≡ ≡ ≡ ≡ ≡ ≡ | 9-15-2026 |
Review all attachments to the return before the return can be considered processable.
Only detach attachments when specifically instructed.
Note:
Consider a return or document an "Original" if it has an original signature or is stamped "Process as Original" .
Edit Action Trail(s) (e.g., "2848 detached" or similar language) in the lower left margin going vertically up the side of the return.
Edit the name and EIN (if not present) on the detached document. Also, edit the return received date (e.g., Rec’d MM/DD/YY) in the lower left margin of the detached document before routing.
Follow general guidelines below for each attachment:
Routing Guide for Attachments
Form/Document | Detach | Descriptions/Action |
---|---|---|
Adjustment - Request for Adjustment to another document | Yes |
|
IRC 965 , Transition Tax Statement (or similar 965 statement) | No |
|
CP 259, CP 959, (Spanish version) Master File Generated 1st TDI Notice |
No | Correspondence is attached or taxpayer’s response shows:
If none of the above apply, correspondence or written response to the notice is not attached, and/or, "599" is notated:
|
CP 259 A through H Master File Generated 1st TDI Notice |
No | Route to: Ogden Submission Processing Campus (OSPC) BMF Entity Mail Stop 6273 |
CP 504/504B Final Notice - Balance Due |
No |
|
CP 518 Delinquency Notice |
No | Correspondence is attached or taxpayer’s response shows:
If none of the above apply, correspondence or written response to the notice is not attached, and/or, "599" is notated:
|
Letter 112C, Letter 282C, Letter 2255C, or Letter 2284C | No |
|
Letter 2030 Initial Letter Issued to Request Verification for Unreported Income, Deductions, Payment and/or Credits on BMF Income Tax Returns Matched to Payer Information Documents Procedures |
No |
|
Letter 2531 Initial Contact for Potential Discrepancy of Income, Deductions and/or Credits Claimed on BMF Income Tax Returns Matched to Payer Information Documents Procedures |
No |
|
Includes tax liability for Multiple Tax Periods or Types of Tax | No |
|
Other Tax Returns (original signature) | Yes |
|
Statement establishing Election to be subject to the Tonnage Tax Regime - Sect 1354 | No | Route a copy of the election to:: Brenda E. Sarini, Internal Revenue Agent 1719 C Route 10 Parsippany, New Jersey 07054-4507 |
Petitions in opposition of tax law provisions | Yes | Route to: IRS ≡ ≡ ≡ ≡ ≡ ≡ ≡ 1111 Constitution Avenue, NW Washington, DC 20224 |
Pro Forma Form 1120 (Form 1120 with a notation of "Pro Forma" , "Pro Forma Form 1120" , "Pro Forma Form 1120 New York State" , or similar statement is notated on the return) for New York State | No | No action required. |
Prompt Assessment/Prompt Determination Request | Yes/No | See Form 4810, Request for Prompt Assessment Under Internal Revenue Code Section 6501(d), information below. |
Statement establishing Reasonable Cause for delinquent filing | No |
|
Remittance found | No | Immediately hand-carry return and remittance to supervisor. |
Request for e-file Waiver Statement notating: "Form 1120-S e-file Waiver Request" | Yes/No |
|
Request for Form 8109 Deposit Slips, or Coupon Books |
No | No action required. |
Request for Forms or Schedules | No |
|
Request for Acknowledgement | No | No action required. |
Request for Installment Agreement | Yes | Route as follows:
|
Request for Information or Inquiries | Yes |
|
Request for Money Transfer | Yes/No |
|
State Tax Returns Original or Copy with an original signature |
Yes | Route to Receipt and Control. |
State Tax Returns (Photocopy, facsimile or no signature) | No | Leave attached. |
Indication of Final return | No |
|
Notices - Payment Agreement or Disagreement with notice amount | Follow local Submission Processing Campus procedures. May involve inputting a STAUP and routing attachment to another function. | |
SS-4 Application for Employer Identification Number |
Yes/No |
|
Schedule D (Form 1120-S) Capital Gains and Losses and Built-in Gains |
No |
|
Schedule F (Form 1040) Profit or Loss From Farming |
No |
|
Schedule K-1, Form 1120-S Shareholder's Share of Income, Credits, Deductions, etc. |
Yes |
|
Schedule M-3 (Form 1120-S) Net Income (Loss) Reconciliation for S Corporations With Total Assets of $10 Million or More |
No |
|
Schedule N (Form 1120) Foreign Operations of U.S. Corporations |
No |
|
Form 56 Notice Concerning Fiduciary Relationship |
Yes |
|
Form 433-B Collection Information Statement for Businesses |
Yes | Route as follows:
|
Form 433-D Installment Agreement |
Yes Parts 1, 2, or 3 |
Route as follows:
|
Form 637 Application for Registration (For Certain Excise Tax Activities) |
Yes/No |
|
Form 843 Claim for Refund and Request for Abatement |
Yes |
|
Form 851 Affiliations Schedule |
No | No action required. |
Form 911 Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order) |
Yes | Route to Taxpayer Advocate Service (TAS). |
Form 926 Return by a U.S. Transferor of Property to a Foreign Corporation |
No |
|
Form 965, Inclusion of Deferred Foreign Income Upon Transition to Participation Exemption System; Form 965, Schedule A, U.S. Shareholder’s Section 965(a) Inclusion Amount; Form 965, Schedule B, Deferred Foreign Income Corporation’s Earnings and Profits (E&P); Form 965, Schedule C, U.S. Shareholder’s Aggregate Foreign Earnings and Profits Deficit; Form 965, Schedule D, U.S. Shareholder’s Aggregate Foreign Cash Position; Form 965, Schedule E, U.S. Shareholder’s Aggregate Foreign Cash Position - Detail; Form 965, Schedule F, Foreign Taxes Deemed Paid by Domestic Corporation; Form 965, Schedule G, Foreign Taxes Deemed Paid by Domestic Corporation for U.S. Shareholder Tax Year Ending in 2017; Form 965 Schedule H, Disallowance of Foreign Tax Credit and Amounts Reported on Forms 1116 and 1118; Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts |
No |
|
Form 966 Corporate Dissolution or Liquidation |
Yes/No |
|
Form 1042 Annual Withholding Tax Return for U.S. Source Income of Foreign Persons |
Yes |
|
Form 1042-S Foreign Person's U.S. Source Income Subject to Withholding |
No | No action required. |
Form 1096 Annual Summary and Transmittal of U.S. Information Returns |
Yes | Route to Receipt and Control. |
Form 1099 Information Return of Income and Payments (Copy A only) |
Yes | Route to Receipt and Control. |
Form 1120-POL U.S. Income Tax Return for Certain Political Organizations |
Yes |
|
Form 1120-X Amended U.S. Corporation Income Tax Return |
No | Give entire return to the Lead. |
Form 1125-A Cost of Goods Sold |
No |
|
Form 1128 Application to Adopt, Change, or Retain a Tax Year |
No | See IRM 3.11.217.6.4, Short Period - Editing Proof of Entitlement.
|
Form 1138 Extension of Time for Payment of Taxes by a Corporation Expecting a Net Operating Loss Carryback |
Yes |
|
Form 1139 Corporation Application for Tentative Refund |
Yes |
|
Form 2220 Underpayment of Estimated Tax by Corporations |
No |
|
Form 2553 Election by a Small Business Corporation |
No | |
Form 2848 Power of Attorney and Declaration of Representative |
Yes/No | Route as follows:
|
Form 3115 Application for Change in Accounting Method |
Yes/No |
|
Form 3520 Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts |
Yes/No |
|
Form 3520-A Annual Information Return of Foreign Trust With a U.S. Owner (Under Section 6048(b)) |
Yes |
|
Form 3753 Manual Refund Posting Voucher |
No |
|
Form 3800 General Business Credit | No |
|
Form 3949 Information Report Referral |
Yes |
|
Form 3949-A Information Referral |
Yes | Route as follows: Ogden -
|
Form 4136 Credit for Federal Tax Paid on Fuels |
No |
|
Form 4251 Return Charge-Out |
No |
|
Form 4255 Certain Credit Recapture, Excessive Payments, and Penalties | No |
|
Form 4466 Corporation Application for Quick Refund of Overpayment of Estimated Tax |
No | No action required. |
Form 4626 Alternative Minimum Tax - Corporations , for tax periods ending November 30, 2018 (201811) and prior |
No |
|
Form 4684 Casualties and Thefts | No | No action required. |
Form 4797 Sales of Business Property (Also Involuntary Conversions and Recapture Amounts Under Sections 179 and 280F(b)(2)) |
No |
|
Form 4810 Request for Prompt Assessment Under Internal Revenue Code Section 6501(d) |
Yes/No |
|
Form 4835 Farm Rental Income and Expenses (Crop and Livestock Shares (Not Cash) Received by Landowner (or Sub-Lessor) |
No |
|
Form 5471 Schedule E, Income, War Profits, and Excess Profits Taxes Paid or Accrued |
No |
|
Form 5471, Schedule G-1, Cost Sharing Arrangement, | No | Possible Return Processing Code (RPC) G. See IRM 3.11.217.13.7, Return Processing Code (RPC), for more information. |
Form 5471 Schedule H, Current Earnings and Profits |
No |
|
Form 5471 Schedule I-1, Information for Global Intangible Low-Taxed Income |
No |
|
Form 5471 Schedule P, Previously Taxed Earnings and Profits of U.S. Shareholder of Certain Foreign Corporations |
No |
|
Form 5471 Information Return of U.S. Persons With Respect To Certain Foreign Corporations (Including 5471 Schedules J, M, N and O) |
No |
|
Form 5472 Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business (Under Sections 6038A and 6038C of the Internal Revenue Code) |
No |
|
Form 5500 Annual Return/Report of Employee Benefit Plan |
Yes |
|
Form 5713 International Boycott Report |
No |
|
Form 5792 Request for IDRS Generated Refund (IGR) |
No |
|
Form 5884-B New Hire Retention Credit |
No |
|
Form 6252 Installment Sale Income |
No |
|
Form 6478 Biofuel Producer Credit (Alcohol and Cellulosic Biofuel Fuels Credit for 2012 - 2007) |
No |
|
Form 6781 Gains and Losses from Section 1256 Contracts and Straddles |
No |
|
Form 7004 Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns |
Yes/No |
|
Form 7204, Consent to Extend the Time to Assess Tax Related to Contested Foreign Income Taxes - Provisional Foreign Tax Credit Agreement | No |
|
Form 7205, Energy Efficient Commercial Buildings Deduction. | No |
|
Form 8027 Employer's Annual Information Return of Tip Income and Allocated Tips Form 8027-T Transmittal for Form 8027 |
Yes |
|
Form 8050 Direct Deposit of Corporate Tax Refund |
No |
|
Form 8082 Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR) |
No |
|
Form 8275 Disclosure Statement Form 8275-R Regulation Disclosure Statement |
No |
|
Form 8283 Noncash Charitable Contributions |
No |
|
Form 8288 U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests |
Original - Yes |
|
Form 8288 U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests |
Copy - No |
No action required. |
Form 8288-A Statement of Withholding on Certain Dispositions by Foreign Persons |
No |
|
Form 8288-B Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests |
Original - Yes |
|
Form 8288-B Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests |
Copy - No |
No action required. |
Form 8404 Interest Charge on DISC-Related Deferred Tax Liability |
Yes |
|
Form 8586 Low-Income Housing Credit |
No |
|
Form 8594 Asset Acquisition Statement Under Section 1060 |
No |
|
Form 8609 Low-Income Housing Credit Allocation and Certification Form 8609-A (prior year Form 8609 Schedule A) Annual Statement for Low-Income Housing Credit |
No |
|
Form 8611 Recapture of Low-Income Housing Credit |
No |
|
Form 8621 Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund |
No |
|
Form 8697 (Refund) Interest Computation Under the Look-Back Method for Completed Long-Term Contracts |
Yes | If Form 8697, Part I, Line 9 or Form 8697, Part II, Line 10 shows a refund, then do the following:
|
Form 8716 Election To Have a Tax Year Other Than a Required Tax Year |
No | See IRM 3.11.217.6.4 Short Period - Editing Proof of Entitlement. |
Form 8752 Required Payment or Refund Under Section 7519 |
Yes/No | KCSPC and OSPC: Yes: Original - Route to Receipt and Control. No: Copy - No action required. |
Form 8821 Tax Information Authorization |
Yes/No | Route as follows:
|
Form 8822 Change of Address, or Form 8822-B Change of Address or Responsible Party - Business |
Yes/No |
|
Form 8824 Like-Kind Exchanges (and section 1043 conflict-of-interest sales) |
No |
|
Form 8825 Rental Real Estate Income and Expenses of a Partnership or an S Corporation |
No |
|
Form 8832 Entity Classification Election |
No |
|
Form 8833 Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) |
No |
|
Form 8858 Information Return of U.S. Persons With Respect To Foreign Disregarded Entities (FDEs) and Foreign Branches (FB) |
No |
|
Form 8865 Return of U.S. Persons With Respect to Certain Foreign Partnerships |
No |
|
Form 8865 Schedule G, Statement of Application of the Gain Deferred Method Under Section 721(c) |
No |
|
Form 8865 Schedule H, Acceleration Events and Exceptions Reporting Relating to Gain Deferral Method Under Section 721(c) |
No |
|
Form 8866 (Refund) Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method |
Yes | If Form 8866, Line 9 shows a refund, then do the following:
|
Form 8866 (Balance Due) Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method |
No | No action required. |
Form 8869 Qualified Subchapter S Subsidiary Election |
Yes/No |
|
Form 8870 Information Return for Transfers Associated With Certain Personal Benefit Contracts (Under section 170(f)(10)) |
Yes | Route to: EO Entity IRS Ogden Campus Mail Stop 6273 |
Form 8871 Political Organization Notice of Section 527 Status |
Yes | Route to Receipt and Control to be re-batched. |
Form 8872 Political Organization Report of Contributions and Expenditures |
Yes | Route to Receipt and Control to be re-batched. |
Form 8873 Extraterritorial Income Exclusion |
No |
|
Form 8875 Taxable REIT Subsidiary Election (Under section 856(I)(1) of the Internal Revenue Code) |
Yes/No | KCSPC and OSPC: Yes: Original - Route to OSPC BMF Entity - Mail Stop 6273. No: Copy - No action required. |
Form 8883 Asset Allocation Statement Under Section 338 |
No |
|
Form 8886 Reportable Transaction Disclosure Statement |
No |
|
Form 8913 Credit for Federal Telephone Excise Tax Paid Only Tax Return |
No | This credit was used for tax periods 200612 - 200711. |
Form 8936, Schedule A, Clean Vehicle Credit Amount | No |
|
Form 8938 Statement of Specified Foreign Financial Assets |
No |
|
Form 8941 Credit for Small Employer Health Insurance Premiums |
No |
|
Form 8949 Sales and Other Dispositions of Capital Assets |
No | Edit CCC "M" when:
|
Form 8990 Limitation on Business Interest Expense Under Section 163(j) |
No |
|
Form 8992 U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI) |
No |
|
Form 8994 Employer Credit for Paid Family and Medical Leave |
No |
|
Form 8996 Qualified Opportunity Fund |
No |
|
Form 8997 Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments |
No |
|
Form 9465 Installment Agreement Request |
Yes | Route as follows:
|
Form 12857 Refund Transfer Posting Voucher |
No |
|
Form 14039-B Business Identity Theft Affidavit |
No |
|
Form 14157 Return Preparer Complaint |
Yes | Route to: Attn: Return Preparer Office 401 W. Peachtree Street NW Mail Stop 421-D Atlanta, Georgia 30308 |
Schedule K-2 Shareholders’ Pro Rata Share Items - International |
No | Added to Mail Routing Guide for information purpose only. |
Schedule K-3 Shareholders’ Share of Income, Deductions, Credits, etc. - International |
No | Added to Mail Routing Guide for information purpose only. |
-
2020 and 2019 Tax Periods
Part II Change Line 6 to 7 Change Line 7 to 8 Change Line 9 to 10 Change Line 10 to 11 Part III Change Line 13 to 14 Change Line 14 to 15 -
2018 and 2017 Tax Periods
Part II |
---|
Change Line 5 to 7 |
Change Line 6 to 8 |
Change Line 8 to 10 |
Change Line 9 to 11 |
Part III |
---|
Change Line 12 to Line 14 |
Change Line 13 to Line 15 |
Potential Frivolous Arguments for Examination Review
Potential Frivolous Argument | Description |
---|---|
Alleged Churches/First Amendment | Income from non-religious sources and may claim a vow of poverty. |
Altered Form | Altering any or all line items with the intent of facilitating non-compliance with the tax laws. |
Altered Jurat/Uniform Commercial Code (UCC) 1-207 or UCC 1-308 | Return has income and deductions but the jurat is altered or stricken. May include reference to UCC 1-207/UCC 1-308 or a statement that the return was not signed under penalties of perjury. |
Amended Returns/Form 843 Claim | Amended return or a Form 843, Claim for Refund and Request for Abatement, filed to obtain a total refund of all taxes paid in prior years, based on a tax avoidance argument. |
C-Filings | This frivolous position includes the following four categories:
|
Challenges to Authority/Due Process | Questions several administrative authorities such as delegation orders, summons authority, Privacy Act, etc. Argues that they must be afforded a hearing or a trial before taxes can be assessed or before property can be seized. |
Challenges to Authority/Title 26 or "law" in Other Documents | Argues that Title 26 of the United States Code is not law because it was never enacted as named. |
Collections Issues | Files frivolous documents contending that several collections issues are invalid (e.g., Offers in Compromise, Collection Due Process Requests, Installment Agreements, Appeals Requests, etc.) because they are not filed and signed by someone with delegated authority. They may have no certificate of assessment attached, do not comply in form or content with a State or Local law, are not in a certain format, or lack a valid Office of Management and Budget (OMB) number, or other frivolous positions. |
Disclaimer | Submits a disclaimer stating, "disclaims the liability for the tax due" , making the liability on the return zero. |
Fifth Amendment | Assertion of the Fifth Amendment right against self-incrimination as a basis for not providing any financial information. |
Foreign Income | Argues that United States citizens and residents are not subject to tax on their wages or other income derived from sources within the United States, as only foreign-based income or income received by nonresident aliens and foreign S Corporations from sources within the United States is taxable. |
Form 1099-OID (Original Issue Discount) |
An individual or business files a return reporting false amounts of income (Generally "Other" or "Miscellaneous" income) and claims a false amount of income tax withholding approximately equal to the amount of falsely reported income. Although the returns report income, they do not calculate any tax due. Some of the returns have Form 1099-OID attached and some have Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Other false financial instruments may be filed in the place of or in addition to the Form 1099-OID such as Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, promissory notes, bonds, sight drafts, etc. |
IRC 861 Business Employment Tax (BMF 861) |
Argument targets employers and advises them that wages are exempt from withholding. These taxpayers rely on Sections 861 through 865 of the Code and the regulations (in particular, Treasury Regulation 1.861-8), promoters of this scheme advise employers to stop withholding and paying payroll taxes on their employee's wages. In addition, some employers file amended payroll tax returns and request refunds of previously paid payroll taxes. |
IRS is a Private Organization/Collects Tribute, Not Taxes | Argues that the IRS is an entity named the Internal Revenue and Tax Service, Inc., which was incorporated in Delaware in 1933, it is a collection agency for the Federal Reserve Bank, or is part of the United Nations and is clandestinely leading the tax-paying public into a "new world order" . |
Not a Person | Argues that a taxpayer is not a "person" within the meaning of IRC 7701(a)(14). |
Obscene, Vulgar, Harassing | Submits documents or other materials indicating that non-filing is due to dissatisfaction with tax policies or taxation in general. Often, this argument is expressed with obscene, vulgar, or crude language and characters in an extremely demeaning manner. |
Protest Against Government Action/Inaction | Argues that refusal to file or pay is justified because they disagree with government policies or spending plans. |
Sixteenth Amendment | Argues the Sixteenth Amendment was not properly ratified and therefore the federal government does not have the legal authority to collect an income tax without apportionment. |
Straw Men | Argues the government has created an entity separate and distinct from the taxpayer - a "straw man" and any tax obligations are exclusively those of the "straw man" . |
Taxes are Voluntary/Law Does Not Require | Submits a return, Amended return or correspondence that argues income taxes are voluntary. |
U.S. vs. Long | Submits a return with zero money amounts. To explain the zeros inserted on the form the individual references "U.S. vs. Long" . |
Unsigned Returns | The individual completes a return but does not sign. A statement indicating disagreement with the tax system is attached or added to the return. |
Valuation | Income is not taxable because of the declining fair market value of the dollar, because the dollar is not backed by gold/silver, because the value of services is offset by the value of the labor (barter income), etc. |
Zero Returns | Submits a return with zero money amounts on all or most line items on the form (e.g., IRC 861, Form 2439, OID, and other BMF filings that claim no income and request refunds). See Revenue Ruling 2004-34. A statement is attached claiming there is no section of the Internal Revenue Code that established an income tax liability. The statement contains arguments about the definition of income. There are several variations on this type of filing such as those bearing the words "nunc pro tunc" and "not liable" . |
Other | All others including those in Notice 2010-33 or any later superseding notice. See also http://www.irs.gov/Tax-Professionals/The-Truth-About-Frivolous-Tax-Arguments-Introduction on irs.gov. This category includes non-filer accounts resulting from initial compliance check such as cross-reference Taxpayer Identification Numbers (TINs). |
Australia State
Australia State | Abbreviation |
---|---|
Australian Capital Territory | ACT |
New South Wales | NSW |
Northern Territory | NT |
Queensland | QLD |
South Australia | SA |
Tasmania | TAS |
Victoria | VIC |
Western Australia | WA |
Brazil State
Brazil State | Abbreviation |
---|---|
Acre | AC |
Alagoas | AL |
Amapa | AP |
Amazonas | AM |
Bahia | BA |
Ceara | CE |
Distrito Federal | DF |
Espirito Santo | ES |
Goias | GO |
Maranhao | MA |
Mato Grosso | MT |
Mato Grosso do Sul | MS |
Minas Gerais | MG |
Parana | PR |
Paraiba | PB |
Para | PA |
Pernambuco | PE |
Piaui | PI |
Rio Grande do Norte | RN |
Rio Grande do Sul | RS |
Rio de Janeiro | RJ |
Rondonia | RO |
Roraima | RR |
Santa Catarina | SC |
Sergipe | SE |
Sao Paulo | SP |
Tocantins | TO |
Canada Province/Territory
Canada Province/Territory | Abbreviation |
---|---|
Alberta | AB |
British Columbia | BC |
Manitoba | MB |
New Brunswick | NB |
Newfoundland and Labrador | NL |
Northwest Territories | NT |
Nova Scotia | NS |
Nunavut | NU |
Ontario | ON |
Prince Edward Island | PE |
Quebec | QC |
Saskatchewan | SK |
Yukon | YT |
Cuba Province
Cuba Province | Abbreviation |
---|---|
Camaguey | CG |
Ciego de Avila | CA |
Cienfuegos | CF |
Ciudad di La Habana | CH |
Granma (Bayamo) | GR |
Guantanamo | GT |
Holguin | HO |
La Habana | HA |
Matazas | MT |
Municipio Especial Isla de la Juventud | IJ |
Pinar del Rio | PR |
Sancti Spiritus | SS |
Santiago de Cuba | SC |
(Victoria de) Las Tunas | LT |
Villa Clara | VC |
Italy Province
Italy Province | Abbreviation |
---|---|
Agrigento | AG |
Alessandria | AL |
Ancona | AN |
Aosta/Aoste | AO |
Arezzo | AR |
Ascoli Piceno | AP |
Asti | AT |
Bari | BA |
Belluno | BL |
Benevento | BN |
Bergamo | BG |
Biella | BI |
Bologna | BO |
Bolzano Bozen | BZ |
Brescia | BS |
Brindisi | BR |
Cagliari | CA |
Caltanissetta | CL |
Campobasso | CB |
Caserta | CE |
Catania | CT |
Catanzaro | CZ |
Chieti | CH |
Como | CO |
Cosenza | CS |
Cremona | CZ |
Crotone | KR |
Cuneo | CN |
Enna | EN |
Ferrara | FE |
Firenze | FI |
Foggia | FG |
Forli | FO |
Frosinone | FR |
Genoa | GE |
Gorizia | GO |
Grosseto | GR |
Imperia | IM |
Isernia | IS |
L'Aquila | AQ |
La Spezia | SP |
Latina | LT |
Lecce | LE |
Livorno | LI |
Lodi | LO |
Lucca | LU |
Macerata | MC |
Mantova | MN |
Massa-Carrara | MS |
Matera | MT |
Messina | ME |
Milan | MI |
Modena | MO |
Napoli | NA |
Novara | NO |
Nuoro | NU |
Oristano | OR |
Padova | PD |
Palermo | PA |
Parma | PR |
Pavia | PV |
Perugia | PG |
Pesaro-Urbino | PS |
Pescara | PE |
Piacenza | PC |
Pisa | PI |
Pistoia | PT |
Pordenone | PN |
Potenza | PZ |
Prato | PO |
Ragusa | RG |
Pavenna | RA |
Peggio de Calabria | RC |
Reggio nell'Emilia | RE |
Rieti | RI |
Rimini | RN |
Roma | RM |
Rovigo | RO |
Salerno | SA |
Sassari | SS |
Savona | SV |
Siena | SI |
Siracusa | SR |
Sondrio | SO |
Taranto | TA |
Teramo | TE |
Terni | TR |
Torino | TO |
Trapani | TP |
Trento | TN |
Treviso | TV |
Trieste | TS |
Udine | UD |
Varese | VA |
Venezia | VE |
Verbania | VB |
Vercelli | VC |
Verona | VR |
Vibo Valentia | VV |
Vincenza | VI |
Viterbo | VT |
Mexico State
Mexico State | Abbreviation |
---|---|
Aguascalientes | AGS |
Baja California Norte | BCN |
Baja California Sur | BCS |
Campeche | CAM |
Chiapas | CHIS |
Chihuahua | CHIH |
Coahuila | COAH |
Colima | COL |
Distrito Federal | DF |
Durango | DGO |
Guanajuato | GTO |
Guerrero | GRO |
Hidalgo | HGO |
Jalisco | JAL |
Mexico | MEX |
Michoacan | MICH |
Morelos | MOR |
Nayarit | NAY |
Nuevo Leon | NL |
Oaxaca | OAX |
Puebla | PUE |
Queretaro | QRO |
Quintana ROO | QROO |
San Luis Potosi | SLP |
Sinaloa | SIN |
Sonora | SON |
Tabasco | TAB |
Tamaulipas | TAMPS |
Tlaxcala | TLAX |
Veracruz | VER |
Yucatan | YUC |
Zacatecas | ZAC |
American Samoa (AS)
American Samoa (AS) City | American Samoa (AS) ZIP Code |
---|---|
Faga'itua | 96799 |
Leone | 96799 |
Olosega Manua' | 96799 |
Pago Pago | 96799 |
Federated States of Micronesia (FM)
Federated States of Micronesia (FM) City | Federated States of Micronesia (FM) ZIP Code |
---|---|
Chuuk | 96942 |
Kosrae | 96944 |
Pohnpei | 96941 |
Yap | 96943 |
Guam (GU)
Guam (GU) City | Guam (GU) ZIP Code |
---|---|
Agana | 96910 |
Inarajan | 96917 |
Merizo | 96916 |
Tamuning | 96931 |
Umatac | 96915 |
Yona | 96915 |
Marshall Islands (MH)
Marshall Islands (MH) City | Marshall Islands (MH) ZIP Code |
---|---|
Ebeye | 96970 |
Majuro | 96960 |
Northern Marianna Islands (MP)
Northern Marianna Islands (MP) City | Northern Marianna Islands (MP) ZIP Code |
---|---|
Capitol Hill | 96950 |
Rota | 96951 |
Saipan | 96950 |
Tinian | 96952 |
Puerto Rico (PR)
Puerto Rico (PR) City | Puerto Rico (PR) ZIP Code |
---|---|
Adjuntas | 00601 |
Aguada | 00602 |
Aguadilla | 00603 |
Aguas Buenas | 00703 |
Aguirre | 00704 |
Aibonito | 00705 |
Anasco | 00610 |
Angeles | 00611 |
Arecibo | 00612 |
Arroyo | 00714 |
Bajadero | 00616 |
Barceloneta | 00617 |
Barranquitas | 00794 |
Barrio Obrero Station | 00935 |
Bayamon | 00956 |
Boqueron | 00622 |
Cabo Rojo | 00623 |
Caguas | 00725 |
Camuy | 00627 |
Canovanas | 00729 |
Caparra Heights | 00920 |
Carolina | 00982 |
Catano | 00962 |
Cayey | 00736 |
Ceiba | 00735 |
Cerro Gordo | 00754 |
Ciales | 00638 |
Cidra | 00739 |
Coamo | 00769 |
Comerio | 00782 |
Condado | 00907 |
Corozal | 00783 |
Coto Laurel | 00780 |
Culebra | 00775 |
Dorado | 00646 |
Ensenada | 00647 |
Esperanza | 00765 |
Fajardo | 00738 |
Fernandez Juncos | 00936 |
Florida | 00650 |
Fort Buchanan | 00934 |
Garrachales | 00652 |
Guanica | 00653 |
Guayama | 00784 |
Guayanilla | 00656 |
Guaynabo | 00965 |
Gurabo | 00778 |
Hatillo | 00659 |
Hato Rey | 00936 |
Hormigueros | 00660 |
Humacao | 00791 |
Isabela | 00662 |
Jayuya | 00664 |
Juana Diaz | 00795 |
Juncos | 00777 |
La Cumbre | 00926 |
Lajas | 00667 |
La Plata | 00786 |
Lares | 00669 |
Las Marias | 00670 |
Las Piedras | 00771 |
Levittown | 00949 |
Loiza | 00772 |
Loiza Street Station | 00936 |
Luquillo | 00773 |
Manati | 00674 |
Maricao | 00606 |
Maunabo | 00707 |
Mayaguez | 00680 |
Mercedita | 00715 |
Minillas Center | 00936 |
Moca | 00676 |
Morovis | 00687 |
Naguabo | 00718 |
Naranjito | 00719 |
Orocovis | 00720 |
Palmer | 00721 |
Patillas | 00723 |
Penuelas | 00624 |
Ponce | 00731 |
Puerta de Tierra | 00936 |
Puerta Real | 00740 |
Punta Santiago | 00741 |
Quebradillas | 00678 |
Ramey | 00603 |
Rincon | 00677 |
Rio Blanco | 00744 |
Rio Grande | 00721 |
Rio Piedras | 00927 |
Rosario | 00636 |
Sabana Grande | 00637 |
Sabana Hoyos | 00688 |
Sabana Seca | 00952 |
Saint Just | 00978 |
Salinas | 00751 |
San Antonio | 00690 |
San Francisco | 00927 |
San German | 00683 |
San Juan | 00936 |
San Lorenzo | 00754 |
San Sebastian | 00685 |
Santa Isabel | 00757 |
Santurce | 00936 |
Toa Alta | 00953 |
Toa Baja | 00949 |
Trujillo Alto | 00976 |
University | 00936 |
Utuado | 00641 |
Vega Alta | 00692 |
Vega Baja (Box 1 - 9049) | 00694 |
Vieques | 00765 |
Villalba | 00766 |
Yabucoa | 00767 |
Yauco | 00698 |

See Form 3800, Part III, revision(s) below.
Form 3800, Part III Column Comparison for Years 2023 to 2024
Form, Line Number | 2023 | 2024 |
---|---|---|
Form 7207, Line 1b |
|
|
Form 3468, Part III, Line 1d |
|
|
Form 8835, Part II, Line 1f |
|
|
Form 7210, Line 1g |
|
|
Form 3468, Part IV, Line 1o |
|
|
Form 7218, Part II, Line 1q | NEW in 2024 |
|
Form 8911, Part I, Line 1s |
|
|
Form 7213, Part II, Line 1u |
|
|
Form 3468, Part V, Line 1v | New in 2024 |
|
Form 8933, Line 1x |
|
|
Form 8936, Part V, Line 1aa |
|
|
Form 7211, Part II, Line 1gg | New in 2024 |
|
Form 3468, Part VI, Line 4a |
|
|
Form 8835, Part II, Line 4e |
|
|