3.21.261. Foreign Investment in Real Property Tax Act (FIRPTA)

(1) Form 8288 is processed to the BMF under:

• File Location Code (FLC) 60 Ogden Submission Processing Campus (OSPC) or 98 Philadelphia Submission Processing Campus (PSPC)

• Tax Class 1

• Document Code 40

• Blocking Series 000-999

• Master File Tax (MFT) Code 17

• Program Code 1133X

• Function 210

(2) If the DOT on Form 8288 is 12/12/2005 or prior, transship the return to the Kansas City Submission Processing Campus (KCSPC), Non-Master File (NMF) Accounting Section for processing to the Automated Non-Master File (ANMF) system. These returns will be assigned a "09641 Document Locator Number (DLN)" and processed as a NMF return.

(3) There is no official extension form for Form 8288.

(4) The Return Due Date (RDD) for Form 8288 is 20 days after the Date of Transfer (DOT), or 20 days from the withholding certificate date (if applicable).

(5) All Form 8288 returns with a DOT of 12/13/2005 or later will be processed at the Ogden Submission Processing Campus (OSPC) as a "Non-Remittance" return.

(6) See Exhibit 3.21.261-8 for Prior Year Conversion for Form 8288, February 2016 revision.

(7) New IRC 1446(f) was added by section 13501 of “the Tax Cuts and Jobs Act,” P.L. 115-97 (the “Act”), which was enacted on December 22, 2017. Section 13501 of the Act also added new section 864(c)(8). On April 2, 2018, the Department of the Treasury and the Internal Revenue Service released Notice 2018-29, 2018-16 I.R.B. 495, which provides temporary guidance under IRC 1446(f) on the disposition of a partnership interest that is not publicly traded and announces an intent to issue regulations under IRC 1446(f). On May 13, 2019, the Department of the Treasury (Treasury Department) and the Internal Revenue Services (IRS) issued proposed regulations under IRC 1446(f) (84 FR 21198). On November 30, 2020, the Treasury Department and the IRS published final regulations (TD 9926) in the Federal Register (85 FR 76910) under IRC 1446(f). The Treasury Department and the IRS have determined that, until other guidance, or forms and instructions have been issued under IRC 1446(f), transferees required to withhold under IRC 1446(f)(1) must use the rules in IRC 1445 and the regulations thereunder for purposes of reporting and paying over the tax. The forms specified in those rules include Form 8288, U.S. Withholding Tax Return for Certain Dispositions by Foreign Persons, and Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons.

(1) Internal Revenue Code 1445 and IRC 897 regulations provide the authority for withholding of tax on dispositions of certain U.S. Real Property Interests (USRPI) by a foreign seller and taxation of nonresident alien individuals and foreign corporations on sales or other dispositions of U.S. real property interests.

(2) New IRC 1446(f) was added by section 13501 of the Tax Cuts and Jobs Act, P.L. 115-97, which was enacted on December 22, 2017. Section 13501 of the Act also added new section 864(c)(8). On April 2, 2018, the Department of the Treasury and the Internal Revenue Service released Notice 2018-29, 2018-16 I.R.B. 495, which provides temporary guidance under IRC 1446(f) about the disposition of a partnership interest that is not publicly traded. It also and announced an intent to issue regulations under IRC 1446(f) about the disposition of a partnership interest that is publicly traded and not publicly traded. The IRS and Treasury issued proposed regulations under new IRC 1446(f) on May 13, 2019, and final regulations on November 30, 2020, which apply to transfers occurring on or after January 29, 2021.

(3) Policy statements for Submission Processing are contained in IRM 1.2.1.4, Policy Statements for Submission Processing Activities.

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

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

(3) The team manager/lead monitors performance and makes sure employees have the tools to perform their duties.

(4) The team employees must follow the instructions in this IRM and keep IRM procedures updated.

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

(2) Program Reports: The Monitoring Section under Submission Processing Program Management /Process Assurance monitors the inventory and timely processing of the returns.

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

• Embedded Quality Submission Processing (EQSP)

• Balanced Measures

• Managerial reviews

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

(1) Acronyms and a glossary of terms can be found in Exhibit 3.21.261-12.

(1) The following job aids have been developed to help tax examiners in their work:

• BMF Name Control Job Aid, Document 7071-A, Catalog Number 38048K.

• Coding and Editing BMF Tax Returns, Foreign Addresses, Document 2324-002, Catalog Number 48747C.

(1) Criminal Investigation (CI) investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC include willful attempts to evade or defeat the income tax. Criminal tax violations also include the willful failure to collect or pay over tax and false claims for refunds based on bogus return information.

(2) If CI has stamped the return, do not send for further CI action.

(3) For returns with refund claims ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, do the following:

(4) Because of the repetitive nature of the Code and Edit (C&E) function, C&E Tax Examining technicians often recognize income tax return data which 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 deems suspicious, CI is available to review the referral.

(5) If a suspicious return is found, do the following:

1. Make a copy of the first two pages of the tax return along with any page of the return that appears suspicious.

2. Attach Form 4227, Intra-SC Reject or Routing Slip, to the copy.

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

Ogden	Kansas City
Mail Stop 9001, Criminal Investigation (CI)	Mail Stop S2 9000, Criminal Investigation (CI)

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

5. Continue processing the return.

(6) If the return fits other criteria (e.g., Frivolous Argument), take proper action.

(1) The primary goal in identifying tax returns for examination is to promote the highest degree of voluntary compliance. Examination 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. SP can refer any questionable return to Exam, unless prohibited by instructions currently found in several IRMs.

(1) BMF 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.

(2) The manager/lead will expedite 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 that they are a victim of "ID Theft"; do not send cases that are subject to Criminal Investigation (CI), Examination (Exam), or Fraud review.

(1) The National Taxpayer Advocate reached agreements with the Commissioners or Chiefs of the Taxpayer Services (TS) Division, Small Business Self/Employed (SB/SE) Division, Tax Exempt Government Entities (TE/GE) Division, Criminal Investigation (CI), Independent Office of Appeals, and Large Business and International (LB&I) that outline the procedures and responsibilities for the processing of Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs).

(2) The SLAs are found at https://irsgov.sharepoint.com/sites/TAS/SitePages/SLA.aspx.

(1) Remove returns marked as "Protective Claim", "Protective Claim for Refund," or similar statement from the batch and route to Accounts Management (AM). Notate "Protective Claim" in the remarks box of Form 4227, Intra-SC Reject or Routing Slip.
Internal Revenue Service
Attn: BMF INTL AM Dept. - 3-L08.154
2970 Market St.
Philadelphia, PA 19104

Notate "Protective Claim" in the remarks box of Form 4227.

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

(2) Compliance notates:

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

2. 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.

(1) When the taxpayer doesn’t file a required return, IRC 6020(b) is the authority for the IRS to prepare the return.

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

1. Returns must have a Received Date. If no Received Date is present per the Compliance Function, follow the normal procedures for editing the Received Date.

2. Compliance Function representatives must sign returns. If not signed, route to Compliance using Form 4227, Intra-SC Reject or Routing Slip.

   Note: Accept revenue officer (RO) typed or electronic signatures as valid signatures on the return.

3. Edit CCC "4".

   Note: Do not use CCC "R" with CCC "4".

4. Edit CCC "D" if the Compliance Function Representative notates "DO NOT ASSESS FAILURE TO PAY PENALTY" and the return due date (without regard to extensions) is July 30, 1996 or prior.

   Note: 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".

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

6. Edit CCC "W" if the Received Date is more than two years and nine months after the Return Due Date. Do Not send the return to Statute Control.

(1) These returns are identified by the notations: "TC 59X" or "ICS".

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

2. Use approved Correspondence Action Sheet to correspond for conditions that are unprocessable (e.g., missing signatures, missing schedules, etc.).

3. Edit CCC "W" if the received date is more than two years and nine months after the Return Due Date (RDD). Do Not send the return to Statute Control. See IRM 3.21.261.17, Computer Condition Codes (CCC) – Form 8288.

(1) These returns are identified by the notation: "SFR" or "SUBSTITUTE FOR RETURN" on Page one.

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

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

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

   Note: CCC "R" must not be used with a CCC "4".

4. Edit CCC "W" if the Received Date is more than two years and nine months after the Return Due Date. Do Not send the return to Statute Control.

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

1. Do not edit CCC G on these returns.

2. Use approved Correspondence Action Sheet to correspond for unprocessable conditions (e.g., missing signatures, missing schedules, etc.)

3. Edit the Computer Condition Code(s) that are checked on Form 13133.

Note: CCC "X" (Hold Credits on Module) is valid for Form 8288.

4. Edit CCC "W" if the IRS Received Date is more than two years nine months after the Return Due Date. Do Not send the return to Statute Control function.

(1) 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 Returns Programs, and Exhibit 3.21.261-6, Potential Frivolous Arguments for Examination Review.

(2) Review the return to determine whether it appears to be a frivolous return. Frivolous Return Criteria

(3) Do not consider the following as frivolous:

• Returns that have only zeros, blanks, or no entries.

• Returns showing "None", "Not Liable", etc.

• Returns showing no evidence of a frivolous argument.

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

(2) "CII" returns show a "CII Image-Do not correspond for Signature" stamped below the signature line or a "CII" annotation on the front of the return.

(3) Verify all edit marks on a "CII" return.

(4) Follow these instructions when you receive a Form 8288 CII return for processing:

(1) 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.

(2) 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.

(3) Do not obliterate, alter, or erase the original entry on a return when deleting or correcting an entry. Always exercise care to ensure the original entry remains legible. Perfected entries provide a legible "edit trail" for anyone who may work with the return later.

(4) 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.

(5) Photocopied Returns - Re-edit or underline any valid, black edit marks. See IRM 3.21.261.10.1, Correspondence Imaging Inventory (CII) Returns, and IRM 3.21.261.15, Re-Entry Document Procedures.

(6) For a description of specific edit marks, see the table below:

(1) Action Codes are used to indicate whether correspondence, research or some 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.

(1) Requests for adjustment of another return:

1. Remove any attachment requesting an adjustment (Automated Data Processing (ADP) or non-ADP).

2. Forward to the BMF International Philadelphia Accounts Management (PAM) Department for action.
   Internal Revenue Service
   Attn: BMF INTL AM Dept. - 3-L08.154
   2970 Market St.
   Philadelphia, PA 19104

3. lMPORTANT: Leave an "Action Trail" on the Form 8288, notating the attachments removed from the Form 8288.

(2) If the attachment does not include the taxpayer's name, address or TIN, enter this information on the attachment.

(3) If the taxpayer writes a question or requests help on the return itself, check with your manager.

(4) If a tax authorization is attached to correspondence (Form 2848 or Form 8821), review the correspondence to determine if other requests are involved:

1. If other requests are involved, photocopy the correspondence and send the copy to PAM (See IRM 3.21.261.13.1 (1b)) for action, and send the original Form 2848 or Form 8821 to Ogden's Centralized Authorization File (CAF) function for processing.

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

(5) Other Unrelated Attachments:

1. Remove other unrelated attachments (such as other returns, acknowledgments, requests for tax forms, etc.) from the document being processed, and

2. Route to the proper function for necessary action.

(6) Always include the following information when forwarding documents to other functions:

• Name and address of the taxpayer

• Taxpayer Identification Number

• Received Date

• Tax Period and type of document from which detached

• Action required to be taken

(7) If an attachment is removed because most of the information is unrelated to the Form 8288 being processed:

1. Photocopy the attachment.

2. Attach it to the Form 8288.

3. Leave an "Action Trail".

4. Route the attachment to the proper function.

(1) Review all attachments to the return before the return can be considered processable.

1. Only detach attachments when specifically instructed.

   Note: Consider a return or document an "original" if it has an original signature or stamped "Process as Original".

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

3. 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.

(2) Follow the general guidelines below for each attachment. The table contains routing instructions for specific forms and/or documents attached to Form 8288:

(1) Numbered Form 8288: Reject any numbered Form 8288 return which has a Date of Transfer (DOT) of 12/12/2005 or prior.

Rejection Action:

1. Edit CCC "U."

2. Prepare Form 4227, Intra-SC Reject or Routing Slip with the following reason in the remarks area; "NMF 8288 return DOT 12/12/2005 and prior". Transship to Kansas City Submission Processing Campus (KCSPC) Non-Master File (NMF) Accounting and staple it to the face of the document.

3. Continue editing the entire return, but do not enter Form 8288-A into the INTLWebApps.

   Note: Rejects or Unpostables will transship the return to KCSPC.

(2) Unnumbered Form 8288: Transship all unnumbered Form 8288 returns with a Date of Transfer (DOT) of 12/12/2005 to KCSPC NMF.

Transshipping Action:

1. Prepare Form 3210, Document Transmittal and write "NMF 8288 return DOT 12/12/2005 and prior" in the remarks section of the transmittal. Address the document transmittal to:
   
   Internal Revenue Service
   Kansas City Submission Processing Campus
   333 W. Pershing Road
   Kansas City, MO 64108
   

2. Prepare Form 4227, Intra-SC Reject or Routing Slip with the following reason in the remarks area; "NMF 8288 return DOT 12/12/2005 and prior" and staple it to the face of the document.

(1) Form 3893, Re-entry Document Control, is used to reinput a return that has not posted to an account or module.

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

(3) Circle the CCC "G" if present.

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

(5) Do not send Letter 1382C, Penalty Removal Request Incomplete, if a request for reasonable cause is attached.

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

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

(8) Examine returns with 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.

(9) A received date must be present on all Re-input returns:

(10) When more information is still needed to make the return processable, prepare Form 3696 approved, Correspondence Action Sheet or Form 4227, Intra-SC Reject or Routing Slip, for the proper action (e.g., correspondence, research, etc.).

(11) When perfection is not possible, attach Form 4227 noting, "PERFECTION NOT POSSIBLE" and return to initiator.

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

(2) Circle CCC "G" if present.

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

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

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

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

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

(8) A received date must be present on all reprocessed returns:

(9) Circle out the Green Rocker or green check and edit marks that may indicate a receipt of remittance.

(10) When more information is still needed to make the return processable prepare an approved Correspondence Action Sheet or Form 4227, Intra-SC Reject or Routing Slip, for the proper action (e.g., correspondence, research, etc.).

(1) Use the following formats when editing dates:

• MMDDYY for Received Dates

• MMDDYYYY for Date Of Transfer (DOT)

• MMDDYYYY for Date Of Withholding Certificate

• MMDDYYYY for Date Of Distribution

• YYYYMM for Tax Periods

(2) The month value edited must be in the range 01-12.

(3) The day value edited must be in the range 01-31.

(4) Always edit the tax period.

(1) The name control consists of the first four characters of the transferee’s (buyers) last name, or the first four characters of the business entity name.

1. Valid characters are alpha, numeric, ampersand (&), hyphen (-) and blank. However, blanks are only valid in the last three positions. Blanks are valid only at the end of the name control.

2. Disregard the word "THE" in the Name Control only when followed by more than one word.

   Note: If an individual and a trade name are present and it can be determined the trade name is for a corporation or partnership, follow the Name Control procedures for corporations or partnerships. If other than a corporation or partnership, follow the Name Control procedures for individuals, regardless of which line the individual owner’s name is listed.

Example: The business name is "The Green Parrot", underline the name control "Gree". However, if the business entity name is "The Flamingo", underline the name control "TheF" because the word "THE" was followed by one word and not more than one word. With regards with estates or trusts, "Joe Wren Trust", name control is "WREN". "Trust for Jane Sparrow", The name control is "SPAR". "Special Needs Trust FBO Tiger Salmon", name control is "SALM".

Reminder: Refer to the Name Control Job Aid, Document 7071, Name Control Job Aid for Individual Master File (IMF) Taxpayers and Document 7071A, BMF Name Control Job Aid - For Use Outside of the Entry Area for further guidance.

(2) All Name Controls are to be underlined.

(3) Edit the Name Control as follows:

(4) If the incorrect transferee (buyer) appears on Form 8288 Line 1a (e.g., Title Company) but the Form 8288-A or settlement agreement (if attached) has the correct transferee, then edit the correct transferee name and TIN to Form 8288 Line 1a and Line 1b. In addition, edit the Form 8288-A or the Form 8288-C withholding agent box with the correct transferee information, including the transferee address, and enter or update the Form 8288-A or Form 8288-C record in the INTLWebApps with the correct transferee (buyer) information.

(5) If the name control was edited incorrectly by another department, underline the correct the name control.

(1) Entries in this field must be either,

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

• Social Security Number (SSN) (entered in NNN-NN-NNNN format).

• Individual Taxpayer Identification Number (ITIN) (entered in 9NN-NN-NNNN format with fourth- and fifth-digit middle numbers ranging in between 70-88, 90-92, 94-99)

• Internal Revenue Service Number (IRSN) (entered in 9NN-NN-NNNN* format with valid fourth and fifth-digit ranges of 02, 04, 05, 06, 07, 08, 09, 10, 17, 18, 19, 28, 29, 37, 38, 39, 49, and 89; (e.g., 9NN-05–NNNN* (PSPC) 9NN-04–NNNN* (OSPC)).

  Note: For an IRSN to be valid the TIN in fourth and fifth positions need to include "01", "03", "11", "16", "40".

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

(3) Form 8288 Only: When the entered TIN is an SSN, ITIN or IRSN, then a TIN Type indicator of "0" must be edited immediately to the right of the TIN. If the TIN entered is an EIN, the TIN Type field is to be left "blank".

(4) If more than one TIN is entered in a field, then research the first TIN using IDRS to make sure it matches the name, and:

1. Edit or perfect the first TIN entered, and

2. Circle out the second or subsequent TIN(s) and the name(s) associated to the second or subsequent TIN.

   Note: If both an SSN and EIN are present, use the SSN and the individual entity’s name associated with the SSN for transcription, unless the entity name is a business name, then use the EIN. Depending on the TIN you select, circle out the other TIN and name associated with it.

(5) Be sure to edit the correct TIN Type indicator after each TIN. See IRM 3.21.261.19.3.1.

(6) If multiple TINs are listed on Form 8288 Line 1b because of multiple transferees (buyers) also being listed, then research the first TIN on IDRS to identify the correct TIN for the first listed transferee. Subsequently, circle out the TINs and the names pertaining to the other transferees, leaving only the TIN number and name pertaining to the first listed transferee.

(7) An SSN with a "V" at the end is BMF and not IMF. To reduce the number of Unpostables, C&E FIRPTA employees will need to research IDRS to see if the "V" tape is established. If the "V" is not established, route the return to Entity.

(1) An "in-care-of" name can be identified by the words "in care of" or the symbols "c/o" or "%" (percent).

(2) Ensure the "in-care-of" name is located above the street address.

(3) Determine a change in the in-care-of name by any of the following:

• A check mark in the "Name Change" box, or

• A check mark in the "Address Change" box, or

• Taxpayer edits or added to the "in-care-of" name (e.g., original "in-care-of" name crossed out, new name added, etc.).

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

• The street number

• The street name

• Any proper room or suite designation (i.e., "Suite 2000")

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

• If a foreign address, see IRM 3.21.261.18.7 (6).

(2) When editing either the mailing or location address information, remember the following guidelines:

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

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

3. If present, always edit the street suffix, such as street, drive, lane, terrace, etc.

4. If present always edit the directional information, such as North, South, East, West, etc.

   Note: Use the proper abbreviations when necessary. See Document 7475 (State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries)

   .

5. If after research a street address or PO Box is not found, edit the word "Local" on the street address line.

   Note: This should only occur in small towns.

(1) Perfect the address when the mailing address (Street or P.O. Box) is not easily identified.

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

(3) Perfect the address as follows:

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

(1) This is a 35-character field. Valid characters are alpha (a-z) and numeric (0-9).

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

(3) Consider returns with Army Post Office (APO)/Diplomatic Post Office (DPO)/Fleet Post Office (FPO) addresses as domestic addresses. See IRM 3.21.261.18.6, Entity Perfection - Domestic Address.

(4) 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 the IRS sent the return to Ogden.

(5) Consider returns with addresses in the following U.S. Possessions as foreign addresses for processing purposes. Edit the same way as domestic addresses.

1. Edit a two-character alpha code on Line 1d for the Possession/Territory name.

U.S. Possession	Abbreviation
American Samoa	AS
Federated States of Micronesia	FM
Guam	GU
Marshall Islands	MH
Northern Mariana Islands	MP
Palau	PW
Puerto Rico	PR
Virgin Islands (U.S.)	VI

2. A ZIP Code must be present. Edit the correct ZIP Code if one is not provided. See Exhibit 3.21.261-5, U.S. Possessions ZIP Codes.

(6) All other foreign addresses are edited the same as a domestic address with the following exceptions:

1. Ensure the foreign country is the last entry in the address.

2. Circle out 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 Addresses Abbreviations, Major City Codes (MCC), ZIP Codes and Countries, for official foreign Country Codes.

3. Edit a unique country code for returns filed with an address in Canada. See IRM 3.21.261.18.7.1 Foreign Address - Canada Only.

Note: Coding and Editing BMF Tax Returns, Foreign Addresses Job Aid (Number 2324–002) provides examples for editing foreign addresses.

4. Check if the address contains a province, state, country or territory for the following: Australia, Brazil, Cuba, Italy, Mexico, or The Netherlands.

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.

If	Then
A province, state or territory name is present,	Circle out province, state or territory name. Edit the correct abbreviation. See Exhibit 3.21.261-13 Province, Foreign State, and Territory Abbreviations
Province, state or territory is shown in abbreviated format,	Continue editing the return.
A province, state or territory name is not present,	Continue editing the return.

5. A ZIP Code is not required on a foreign address. Foreign addresses use a postal code that is entered before the foreign country and is part of the address.

(1) This is a 22-position field for which an entry must be present.

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

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

• The address is a U.S. address.

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

(4) If the address is a foreign address which includes a Province designation.

1. Circle out the name of the province.

2. Edit the two-position alpha abbreviation at the end of the city field.

3. A two-position alpha code must be present for Canadian addresses.

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

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

(3) If the State name is spelled out, do not edit the two-digit state code. ISRP will enter the two-digit state code.

(4) If the address is a foreign address ISRP will automatically enter a period blank in the state field.

(5) When the State is missing or illegible, research attachments and/or ZIP Code directory, if not found research IDRS.

(1) These are 12-position fields for which entries must be present for U.S. addresses.

(2) The valid characters are alpha (a-z) and numeric (0-9).

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

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

1. Research the ZIP Code Directory.

2. Edit the correct ZIP Code.

(5) A foreign postal code may include both alpha and numeric characters. See Job Aid 2324-002 for proper placement.

(6) U. S. and Australian addresses must include Numeric Postal Codes.

(1) These are 12-position fields for which entries may or may not be present.

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

(3) Entries must be zero or a significant entry. No negatives are allowed.

(4) Entries are to be transcribed in dollars and cents.

(1) The tax period for a Form 8288 is based on the Month and Year of the Date of Transfer, found on Line 3. Therefore, if the Date of Transfer is 02/05/2025, then the tax period will be 202502. See IRM 3.21.261.19.9 (6).

(2) Edit the proper tax period per the Date of Transfer. Editing is required on EVERY RETURN.

(3) The initial tax period being processed to the BMF under MFT 17 is tax period ending 12/31/2005. This tax period will be valid for any Form 8288 reflecting a Date of Transfer of 12/13/2005, or subsequent.

(4) Edit the tax period in "YYYYMM" format on Form 8288, and to the right of the form title. See Figure 3.21.261-4.

(5) A tax period should end on the last day of a month unless otherwise specified.

(6) Form 8288 is a withholding tax return filed by the transferee (buyer) when a USRPI is purchased from a foreigner. As a result of this uniqueness in processing, there will never be Filing Requirements appearing on CC INOLE for Form 8288, MFT 17.

(7) For more instructions see IRM 3.21.261.18.1.

(1) The transferee (buyer) must complete Form 8288 and Form 8288-A after the transfer of the USRPI or interest in the partnership has taken place. This requires the transferee to complete Part I, Part II or Part III of Form 8288. The Part number can be found on the left margin Form 8288, and just above the part completed by the transferee. The editing of this field has an impact on the tax calculation.

(2) If Part I is completed, then edit a "1" in the outside left margin next to the Part I box. See Figure 3.21.261-5a. Edit CCC "X". See IRM 3.21.261.17 (3).

(3) If Part II is completed, then edit a "2" in the outside left margin on the middle of the page next to the Part II box. See Figure 3.21.261-5b. Edit CCC "X". See IRM 3.21.261.17 (3).

(4) If Part III is completed, then edit a "3" in the outside left margin on the middle of the page next to the Part III box. Edit CCC "X."

(5) If Part IV is completed, then edit a "4" in the outside left margin on the middle of the page next to the Part IV box. Edit CCC "X."

(6) If Part V is completed, it is not necessary to edit the part number or a CCC.

(7) If Part I, Part II, Part III, Part IV, and Part V of Form 8288 are blank then research all attachments (e.g., 8288-A, Withholding certificate) for the missing information. If the missing information can be found, then edit the required information to Part I.

(1) A nine-character Taxpayer Identifying Number (TIN) must be included on Line 1b of all Form 8288 submitted for processing.

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

(3) The TIN must be either:

• An Employer Identification Number (EIN)

• A Social Security Number (SSN), or

• An Individual Taxpayer Identification Number (ITIN)

• or an Internal Revenue Service Number (IRSN)

(4) Check attachments and/or initiate research if the Taxpayer Identifying Number (TIN) provided is other than nine digits, missing, invalid, or indeterminate.

(5) Circle out an invalid or illegible TIN.

(6) If pending, applied for, etc. is indicated in the TIN area, research for the TIN.

(7) If no TIN is found, edit CCC "U" and forward to Entity for research.

(8) If multiple TINs are listed on Form 8288 Line 1b because of multiple transferees (buyers) also being listed, then research the first TIN on IDRS to identify the correct TIN for the first listed transferee. Subsequently, circle out the TINs and the names pertaining to the other transferees, leaving only the TIN number and name pertaining to the first listed transferee.

3.21.261.19.3.1 (01-01-2024)

Taxpayer Identifying Number Type, end of Line 1b (TIN TYPE)

(1) This is a one-position field which must be edited if the Filer's TIN is an SSN, IRSN or an ITIN.

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

(3) If the TIN entered on Line 1b is either an SSN, IRSN or an ITIN (NNN-NN-NNNN format), edit a "0" (zero) in the far right corner of the TIN field. (Figure 3.21.261-6).

Note: The SSN on Line 1b of Form 8288 must be the full SSN. However, the SSN that appears in the withholding agent box on Form 8288-A can be masked for security purposes. If masked on the Form 8288-A, the SSN will appear in the following format NNN-NN-_ _ _ _ so only the last 4-digits are present on the Form 8288-A. This does not apply to an ITIN, IRSN or EIN number.

(4) If the TIN entered on Line 1b is an EIN (NN-NNNNNNN format), no editing is required.

(1) For filers other than individuals, the name control consists of the first four characters of the filer's (corporation, partnership, trust, etc.) name. See IRM 3.21.261.18.2 and Name Control Job Aid Document 7071 (IMF) or Document 7071A (BMF) for specific information and exceptions.

(2) For individuals, the name control consists of the first four letters of the filers LAST name.

(3) Valid characters are:

• Alpha (a-z).

• Numeric (0-9).

• Ampersand (&), and hyphen (-).

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

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

(5) Underline the name control.

(6) If the incorrect transferee (buyer) appears on Form 8288, Line 1, see IRM 3.21.261.18.2 for specific instructions.

(1) Address information for the Transferee (buyer) is provided on Line 1c and 1d.

(2) Research return attachments to complete or perfect the information provided by the filer if it is incomplete or illegible. Valid characters are alpha (a-z) and numeric (0-9).

(3) Refer to the following subsections to perfect the address:

• IRM 3.21.261.18.4

• IRM 3.21.261.18.5

• IRM 3.21.261.18.6

• IRM 3.21.261.18.7

(1) This is a 10-position field for which an entry may or may not be present.

(2) Valid characters are, "Numeric 0-9", and "blank."

(3) If present, underline the complete telephone number (include area code). A toll-free number is considered a valid number to underline.

(1) This is a 35-position field (including blank spaces) for which an entry must be present.

(2) Valid characters are Alpha (a-z), Numeric (0-9), Hyphen (-) and Slash (/).

(3) Underline the description of the U.S. Real Property or transferred partnership interest appearing on Line 2. The description of the USRPI should appear in the format of a street address. If an apartment number is included, underline the unit number. Do not include the City, State and ZIP Code. See Figure 3.21.261-7.

(1) This is an eight-position field for which an entry must be present.

(2) Valid characters are Numeric 0-9.

(3) Edit in MMDDYYYY format. Editing is required on EVERY RETURN.

(1) This is an eight-position field for which an entry must be present when a withholding certificate (approved or rejected) is attached.

(2) Valid characters are Numeric 0-9.

(3) Edit in MMDDYYYY format.

(4) When a withholding certificate (approved or rejected) is attached, the date on the withholding certificate letter will change the due date of the Form 8288 return from 20 days from the date of transfer to 20 days from the date of the withholding certificate.

(5) The following table contains a list of withholding certificate letters.

(6) Edit the reduced withholding and bypass indicator "1" when an "Approved" certificate is attached to Form 8288. See IRM 3.21.261.19.13 and IRM 3.21.261.19.16

(7) The tax period for a Form 8288 is based on the Month and Year of the Date of Transfer, found on Line 3. See IRM 3.21.261.19.1.

(8) The initial tax period being processed to the BMF under MFT 17 is tax period ending 12/31/2005. This tax period will be valid for any Form 8288 reflecting a Date of Transfer of 12/13/2005, or subsequent.

(9) If the Date of Transfer is incorrect or missing on Line 3 or the DOT is a future date, then research the attached Form 8288-A, or other documents (settlement statement if present) for the date of transfer. If a withholding certificate is attached, research the withholding certificate information located in the Form 8288-B section of the INTLWebApps system for the original date of transfer and edit it to line 3 of Form 8288 and line 1 of Form 8288-A. Leave an action trail when the date of transfer is found using the INTLWebApps.

(10) If the DOT or correct DOT cannot be found and you do not have a telephone number for the transferee (buyer), then correspond (CAS 3104C) with the transferee (buyer) (withholding agent) for the DOT. If a telephone number is found call the taxpayer for the DOT.

1. Prepare correspondence action sheet 3104C to request the DOT.

2. Edit CCC "U."

3. Edit the "Default DOT" only on copy B of Form 8288-A so it can be entered in the INTLWebApps.

Note: The Default DOT is the first day of the month prior to the IRS received date on Form 8288.

Example: The IRS received date is 09-19-2024, edit 08-01-2024 as the default DOT.

(11) If Form 8288 and Form 8288-A show different dates of transfers, then "line through" the DOT on Form 8288-A and edit the DOT from Form 8288 above it.

(1) This is a three-position field for which an entry must be present.

(2) Valid characters are, Numeric 0-9. If the count is written in alpha characters, change it to a numeric number. Maximum number to enter is "999."

(3) Always verify the entry on Line 5 by counting the attached Form 8288-A or Forms 8288-C.

(1) This is a 12-position field for which an entry must be present on Line 6 (Part I), Line 10 (Part II), or Line 13 (Part I) of Form 8288. Only one entry is allowed in Line 6, Line 10, or Line 13.

(2) Valid characters are Numeric 0-9.

(3) The entry in Line 6, Line 10, or Line 13 cannot be a negative entry.

(4) If Part I is completed, and there is an amount on Line 6 underline the amount on Line 6 and edit the correct percentage as listed below:

• Edit “10%” to the right of the amount on Line 6 when there is an amount on Line 7a.

• Edit “15%” to the right of the amount on Line 6 when there is an amount on Line 7b.

  Note: Do not underline the amount realized and do not edit a percentage to the right of the amount realized for 2018 and older versions of Form 8288. Refer to Exhibits 3.21.261-8 through 10 for converting line numbers for prior year revisions of Form 8288 to the most current revision.

(5) If Part II is completed, and there is an amount on Line 10, underline the amount on Line 10 and edit the correct percentage as listed below:

• Edit “10%” to the right of the amount on Line 10 when there is an amount on Line 11a.

• Edit “15%” to the right of the amount on Line 10 when there is an amount on Line 11b.

• Edit “21%” to the right of the amount on Line 10 when there is an amount on Line 11c.

  Note: Do not underline the amount realized and do not edit a percentage to the right of the amount realized for 2018 and older versions of Form 8288. Refer to Exhibits 3.21.261-8 through 10 for converting line numbers for prior year revisions of Form 8288 to the most current revision.

(6) If Part III is completed, and there is an amount on Line 13, underline the amount on Line 13 and edit “10%” to the right of the amount on Line 13.

(7) If Part I is completed, and Line 6 is blank, research the attached Form 8288-A or any other attachments for the amount realized. The amount realized can be found in box 3 of Form 8288-A, or the withholding certificate (if any). Edit this amount to Line 6 and underline it. Then edit the correct percentage as listed below:

• Edit “10%” to the right of the amount on Line 6 when there is an amount on Line 7a.

• Edit “15%” to the right of the amount on Line 6 when there is an amount on Line 7b.

  Note: Do not underline the amount realized and do not edit a percentage to the right of the amount realized for 2018 and older versions of Form 8288. Refer to Exhibits 3.21.261-8 through 10 for converting line numbers for prior year revisions of Form 8288 to the most current revision.

(8) If Part II is completed, and Line 10 is blank, research the attached Form 8288-A or any other attachments for the recognized gain or amount realized amount. The recognized gain is in box 2 and the amount realized in box 3 of Form 8288-A. Edit the gain amount or the amount realized to Line 10 and underline it. Then edit the correct percentage as listed below:

• Edit “10%” to the right of the amount on Line 10 when there is an amount on Line 11a.

• Edit “15%” to the right of the amount on Line 10 when there is an amount on Line 11b.

• Edit “21%” to the right of the amount on Line 10 when there is an amount on Line 11c.

  Note: Do not underline the amount realized and do not edit a percentage to the right of the amount realized for 2018 and older versions of Form 8288. Refer to Exhibits 3.21.261-8 through 10 for converting line numbers for prior year revisions of Form 8288 to the most current revision.

(9) If Part III is completed, and Line 13 is blank, research the attached Form 8288-A or any other attachments for the amount realized. The amount realized can be found in box 3 of Form 8288-A. Edit the amount realized to Line 13. Underline the amount on Line 13 and edit “10%” to the right of the amount on Line 13.

(10) If you are unable to locate the "Amount Realized or the Amount Subject to Withholding" on Form 8288 or Form 8288-A or any other attachments, edit CCC "U" and prepare correspondence action sheet Letter 3104C to correspond for the missing information.

(11) If Part I, Part II, or Part III is completed, and Line 6, Line 10, or Line 13 do not match up with the amount realized in box 3 of Form 8288-A, research Form 8288, Form 8288-A, and attachments to determine the correct amounts. Edit the correct amounts on Form 8288 and Form 8288-A where needed. If you are unable to determine the correct "Amount Realized or the Amount Subject to Withholding" on Form 8288 or Form 8288-A or from any other attachments, edit CCC "U" and prepare correspondence action sheet Letter 3104C to correspond for the missing information.

(12) If one or more foreign persons and one or more U.S. persons jointly transfer a USRPI and there is some indication either the amount realized or the amount withheld was not properly reported, you must determine the amount subject to withholding in the following manner.

(1) This is a 12-position field for which an entry must be present on Line 7a or Line 7b of Part I, Line 11a, Line 11b, or Line 11c of Part II, or Line 14a of Part III on Form 8288. Only one entry is allowed in Line 7a or 7b , Line 11a, Line 11b, or Line 11c, or Line 14a.

(2) Valid characters are Numeric 0-9.

(3) The entry in Line 7a or Line 7b, Line 11a, Line 11b, or Line 11c, or Line 14a cannot be a negative entry.

(4) If Line 6 has a value and Line 7a, 7b, and 7c are blank, research the attached Form 8288-A or any other attachments for the withholding tax liability. The withholding tax liability amount will generally equal the amount on Line 8 or box 4 of Form 8288-A, or the withholding certificate (if any). Edit this amount to Line 7a, 7b, or 7c.

(5) If Line 10 has a value and Line 11a, Line 11b, Line 11c, and Line 11d are blank, research the attached Form 8288-A or any other attachments for the withholding tax liability. The withholding tax liability amount will generally equal the amount on Line 12 or box 4 of Form 8288-A, or the withholding certificate (if any). Edit this amount to Line 11a, 11b, 11c, or 11d.

(6) If Line 13 has a value and Line 14a and Line 14b are blank, research the attached Form 8288-A or any other attachments for the withholding tax liability. The withholding tax liability amount will generally equal the amount on Line 14b or box 4 of Form 8288-A, or the withholding certificate (if any). Edit this amount to Line 14a or 14b.

(7) If you are unable to locate the withholding tax liability on Form 8288 or Form 8288-A or any other attachments, edit CCC "U" and prepare correspondence action sheet Letter 3104C to correspond for the missing information.

(8) If Part I, Part II, or Part III is completed, and Line 7a, 7b, or 7c, Line 11a, 11b, 11c, or 11d, or Line 14a or 14b do not match up with the federal income tax withheld in box 4 of Form 8288-A, research Form 8288, Form 8288-A, and attachments to determine these are the correct amounts. If they are not, edit the correct amounts to Form 8288 and Form 8288-A where needed, but only if you can determine without a doubt the amounts are correct.

(9) If you are unable to determine the correct withholding tax liability or amount withheld on Form 8288 or Form 8288-A or from any other attachments, edit CCC "U" and prepare correspondence action sheet Letter 3104C to correspond for the missing information.

(1) This is a one-position field for which an entry may or may not be present.

(2) Valid characters are:

• "1" = withholding certificate attached (See withholding certificate chart).

Reminder: Edit the reduced withholding indicator 1 in Line 7c, Line 11d or Line 14b, and bypass indicator “1” next to one of those lines when one of the six "Approved" certificates are attached to Form 8288:

Withholding Certificate Letter Numbers

Letter 3307(SC/CG) - Approved Exempt Letter 3308(SC/CG) - Approved Reduced Letter 3309(SC/CG) - Approved Exempt Letter 3310(SC/CG) - Approved Reduced Letter 3311(SC/CG) - Approved Reduced Letter 3497(SC/CG) - Approved Reduced Letter 3312(SC/CG) - Approved Installment Plan Caution: Whenever Letter 3312 is attached the new Date of Transfer to edit will be according to the date of payment. (e.g., payment date is April 1, 2023 then valid date of withholding certificate to edit would be 04012022 and the tax period to use would be 202304). Example: The Installment Withholding Certificate is issued March 2, 2019, of which 10% ($2,275.00 x 10% = $227.50) FIRPTA tax is to be paid on the initial USRPI installment transfer. Subsequent installment transfer may take place on 03/02/2023 ($3,310.00 x 10% = $331.00), which means the tax period is 202303 and not 202003. The RDD would be 03/22/2023. As long as it is timely filed, no penalties or interest will be charged.

Otherwise, do not edit anything. The tax will be assessed at the full 10 percent, 15 percent, or 21 percent (35 percent for dispositions prior to January 1, 2018) amount for the rejected letters.

• "blank" = withholding certificate not attached or required.

(3) Follow the table below when an approved withholding certificate is attached to Form 8288 and Parts I, II or III were not filled out correctly:

(4) Reduced Withholding when Form 8288 Part I is completed:

(5) Reduced Withholding when Form 8288 Part II is completed:

(6) Reduced Withholding when Form 8288 Part III is completed:

(1) Only partnerships will fill out Part IV of Form 8288 and attach a Form 8288-C.

(2) A partnership will submit a Form 8288 and Form 8288-C to report a distribution payment on behalf of the transferee (buyer). The partnership will continue making payments until the full 10 percent of the total amount realized plus any applicable interest paid.

(3) Line 18 is the only line transcribed to ISRP in this part of the form.

(4) Valid characters are Numeric 0-9.

(5) A Form 8288-C must be attached when Part IV of Form 8288 is filled out. Follow the instructions in the table below:

(1) This part of Form 8288 is not processed by Submission Processing. It is filled out by the transferee (buyer) to claim a refund on excess withholding reported on Part IV of Form 8288 by the partnership. The transferee (buyer) is still required to file a Form 8288, Part III to report the withholding tax on a partnership transfer. Ogden Accounts Management department will work these claims.

(2) Follow the steps below when a Form 8288 with Part V is received.

(1) This is a one-position field for which an entry may or may not be present.

(2) The valid characters are 1 and Blank.

(3) The BPI is edited in the outside right margin of Part I, Line 8, Part II, Line 12, or Part III, Line 15.

(4) Definition:

• "1" - tax is less than 10 percent and a reduced withholding certificate is attached (Parts I and II). No Math Error.

• "1" - tax is less than 15 percent and a reduced withholding certificate is attached (Parts I and II). No Math Error.

• "1" - tax is less than 21 percent (35 percent for dispositions prior to January 1, 2018) and a reduced withholding certificate is attached (Part II). No Math Error.

• "1" - tax is less than 10 percent (Part III) or the return includes the statement "Section 1446(f)(1) withholding" (or something similar) at the top of Forms 8288 and Forms 8288-A of prior year returns.

• "Blank" - computer will systemically calculate the tax at 10 percent of the amount realized present in Part I Line 7a, Part II Line 11a, or Part III Line 14a.

  Exception: Do not edit a reduced withholding checkbox when an Installment Sales Withholding Certificate Letter 3312 (SC/CG) is present.

• "Blank" - computer will systemically calculate the tax at 15 percent of the amount realized present in Part I Line 7b, or Part II Line 11b.

  Exception: Do not edit a reduced withholding checkbox when an Installment Sales Withholding Certificate Letter 3312 (SC/CG) is present.

• "Blank" - computer will systemically calculate the tax at 21 percent (35 percent for dispositions prior to January 1, 2018) of the amount subject to withholding present in Part II Line 11c.

(1) Only one line can contain an entry.

(2) This is a 12-position field for which an entry must be present.

(3) Valid characters are, Numeric 0-9.

(4) The total tax line cannot be negative.

(5) If Form 8288, Part I is completed then Line 7a must be 10 percent for dispositions prior to February 17, 2016 and certain post-February 16, 2016 dispositions (see IRM 3.21.261.1.1.1, first "Note") of Line 6, or 15 percent for dispositions after February 16, 2016 of the amount on Line 6, unless an approved withholding certificate is attached. An approved withholding certificate reduces the 10 or 15 percent tax to an amount less than 10 or 15 percent (including "0").

(6) If the entry is incorrect or not legible, do the following:

1. Place a red "X" to the left of the incorrect entry.

2. Write the correct entry (found on Form 8288-A, the withholding certificate, or other attachments if any, towards the middle of the second paragraph) to the left of the incorrect entry of Lines 7a or 7b, Part I.

(7) If Form 8288, Part II is completed then Line 11a must be 10 percent of the amount on Line 10, Line 11b must be 15 percent of the amount on Line 10, or Line 11c must be 21 percent (35 percent for dispositions prior to January 1, 2018) of the amount of Line 10, unless an approved withholding certificate is attached (Line 11d is checked or C&E has checked Line 11d, or a significant entry greater than zero on older Forms 8288 revised before February 2017 is present). An approved withholding certificate reduces the 15 percent, 10 percent, or 21 percent (35 percent for dispositions prior to January 1, 2018) tax to an amount less than 15 percent, 10 percent, or 21 percent (35 percent for dispositions prior to January 1, 2018) (including "0").

FIRPTA Tax Discrepancy - Part II

(8) If the entry is incorrect or not legible, do the following:

1. Place a red "X" to the left of the incorrect entry.

2. Write the correct entry (found on Form 8288-A, the withholding certificate or other attachments, if any, towards the middle of the second paragraph) to the left of the incorrect entry of Lines 11a, 11b, or 11c, Part II.

(9) If Form 8288, Part III is completed then Line 14a must be 10 percent of Line 13, unless Line 14b is checked.

(10) If the entry is incorrect or not legible, do the following:

1. Place a red "X" to the left of the incorrect entry.

2. Write the correct entry (found on Form 8288-A or other attachments, if any) to the left of the incorrect entry of Lines 14a or 14b, Part III.

(1) This is a one-position field for which an entry may or may not be present.

(2) No editing is necessary. ISRP will enter "1" if checkbox is checked on Line 9, Part II.

(1) A signature (withholding agent/transferee (buyer), partner, fiduciary, or corporate officer) and jurat is required for all returns except the following:

• Returns prepared under IRC 6020(b). These returns must be signed by a Compliance Function representative. See IRM 3.21.261.9.2, IRC 6020(b) - Prepared by Collection.

Note: Accept electronic or typed revenue officer (RO) signatures as valid on the return.

• Returns prepared by Examination, for example Substitute for Return "SFR" or "SUBSTITUTE RETURN". See IRM 3.21.261.9.4, ♦Examination Prepared♦.

• Dummy returns prepared by IRS.

• Returns filed under IRC 501(d) (Religious or Apostolic Organization).

• Returns attached to taxpayer response to IRS correspondence containing a jurat and the taxpayer’s signature. See paragraph (5) below.

• Re-entry returns originally filed electronically (E-File). These returns may be identified by the presence of Mode E-File printouts or "efile GRAPHIC print - Do Not Process" or "TRPRT Print Do Not Process" in lieu of an actual return.

  Note: If the efile GRAPHIC print says "efile GRAPHIC print - Do Not Process" or the TRPRT print says "TRPRT Print Do Not Process" in the top margin, circle the words "Do Not Process."

(2) Do not correspond for a signature on "CII" returns with a Form 13596, Reprocessing Returns, attached. See IRM 3.21.261.10.1 Correspondence Imaging Inventory (CII) Returns, for processing instructions.

(3) If a signature is missing correspond:

(4) Follow the instructions in paragraph (3) above, when the Entity information is the only thing present on the form, and there are no attachments containing tax data.

(5) If the jurat is altered or stricken (crossed out), see IRM 3.21.261.9.6, Frivolous Arguments for frivolous return instructions. See Exhibit 3.21.261-6.

(6) Accept a "signature declaration" (a signature with jurat obtained through IRS correspondence) if attached to the return.

1. If the "signature declaration" is altered or stricken (crossed out), see IRM 3.21.261.9.6, Frivolous Arguments. See Exhibit 3.21.261-6.

2. If the taxpayer responds with a self-prepared "signature declaration" it must contain the same language as the jurat on the tax return, e.g., "UNDER PENALTIES OF PERJURY, I DECLARE THAT I HAVE EXAMINED THIS RETURN, INCLUDING ACCOMPANYING SCHEDULES AND STATEMENTS, AND TO THE BEST OF MY KNOWLEDGE AND BELIEF, IT IS TRUE, CORRECT AND COMPLETE."

(7) Tax examiners are not handwriting experts. Section 301.6064-1 of the Regulations allows the IRS to presume the signature on a return, statement or other document is the true signature of the person who signed the document.

(8) Correspond one time for the signature. If you do not receive a reply after the prescribed suspense period, edit as follows:

(1) A signature may or may not be present; do not correspond if not present.

(2) Do not correspond for a missing signature on any return prepared by a Compliance function.

(3) Do not question any signature on the return. Internal Revenue (IR) Regulations Section 301.6064-1 allows the Service to presume the signature on the return, statement or other document is the true signature of the person who signed the document.

(4) A constructive signature (that is, a signature on an accompanying check, letter, etc.) is not acceptable unless the signature follows a perjury statement containing the same language as the jurat of the tax return.

(1) ISRP will transcribe the entry. The Preparer Tax Identification Number (PTIN) is located to the right of the Preparer's Signature at the bottom of Form 8288.

(2) A Preparer Tax Identification Number (PTIN) is a valid entry in the Preparer's PTIN area at the bottom of Form 8288. The PTIN is nine digits beginning with the alpha "P" (e.g., PXXXXXXXX) and followed by eight numbers.

(3) Valid characters are numeric (0-9) and alpha "P" only.

(4) If the entry in the PTIN area is an invalid number, or does not begin with a "P", or is an SSN number, then circle-out the number.

(5) The Preparer's EIN must be a nine-digit numeric number. The EIN is entered in NN-NNNNNNN format. The EIN cannot be all zeros or all nines.

(6) Circle the EIN if all zeros or all nines.