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

(1) Form 8288 was previously processed at the Philadelphia Submission Processing Campus (PSPC). It is currently processed at the Ogden Submission Processing Campus (OSPC). The Non-Master File (NMF) Form 8288 returns are processed at the Kansas City Submission Processing Campus (KCSPC).

(2) Also, IRM 3.21.25, Miscellaneous Tax Returns, is used in conjunction with this IRM for processing Form 8288-A Statement of Withholding on Certain Dispositions by Foreign Persons, which is attached to Form 8288, U.S. Withholding Tax Return for Certain Dispositions by Foreign Persons.

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

• File Location Code 60 (OSPC), 98 (PSPC) or 09 (KCSPC - for NMF)

• Tax Class 1

• Doc Code 40

• Julian Date 001-366

• Blocking Series 000-999

• Sequence Number 00-99

• List Year 0-9

• Master File Tax (MFT) 17

• Program Code 11330

• Function 270

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

(5) The Return Due Date (RDD) for Form 8288 is 20 days after the DOT, or, 20 days from the date the withholding certificate, or notification denying the application for a withholding certificate, was mailed by the IRS.

(6) 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) regarding 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 (IRC) IRC 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 section 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). Notice 2018-08, 2018-7 I.R.B. 352, and Notice 2018-29, 2018-16 I.R.B. 495, have been issued. Regulations under section 1446(f) were issued. They generally apply to transfers of non- publicly traded partnership interests that occur after January 29, 2021. Notice 2021-51 provides the regulations applicable to transfers of publicly traded partnership interests and withholding under section 1446(f)(4) will apply to transfers of occurring on or after January 1, 2023.

(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 monitor and ensure employees have the tools to perform their duties.

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

(1) Program Goals: Correct all errors identified by the Service Center Replacement System (SCRS).

(2) Program Reports: The Monitoring Section under Submission Processing Program Management/Process Assurance monitors the Error Resolution Department reports. Daily, weekly, and periodic reports are available to management through Control-D Web Access to manage inventory and capture data for program planning and review.

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

• Embedded Quality Submission Processing (EQSP)

• Balanced Measures

• Managerial Reviews

• Work-in-Process Reviews

(1) All tax examiners must submit a management approved Business Entitlement Access Request System (BEARS) request to gain access to the Service Center Replacement System (SCRS).

(2) Tax returns in SCRS are worked on a First In First Out (FIFO) basis as they are received from input systems through the General Mainline Framework (GMF).

(1) Acronyms and a glossary of terms can be found in Exhibit 3.22.261-7.

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

• BMF Name Control Job Aid, Document 7071, Catalog Number 63192T.

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

(2) The following are IRMs related to this IRM:

• IRM 3.21.261 Foreign Investment in Real Property Tax Act (FIRPTA)

• IRM 3.21.25 Miscellaneous Tax Returns

• IRM 3.24.25 BMF International Miscellaneous Tax Returns

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

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

(3) These are the Business Master File (BMF) campus cycles:

1. Campus Cycle: Thursday – Wednesday

2. Master File Processing: Friday – Thursday

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

4. Unpostables: New available Tuesday; Closing Tuesday

(4) BMF transaction posting timeframes are:

1. Transactions are viewable using Corporate Files Online (CFOL) command codes on Saturday following the weekly Master File processing run on Thursday.

2. Transactions are viewable as posted transactions using Integrated Data Retrieval System (IDRS) command codes on Monday following the weekly Master File processing run on Thursday.

(5) Transaction posting dates show a format of YYYYCCDD. YYYY is the year. CC is the posting cycle. Individual Master File (IMF) transactions values for DD are:

• 01 Friday

• 02 Monday

• 03 Tuesday

• 04 Wednesday

• 05 Thursday

(1) It is important to leave a legible "Working Trail" (or "Action Trail") using blue ink for those who may work with the return later.

(2) Write all Taxpayer Notice Codes (TPNCs) 90 on the front of the return in the upper left corner (or use Form 12648, Error Correction 90 TPNC). See IRM 3.22.261.20.15, Field 01S - Taxpayer Notice Code, for more information.

(3) If corresponding with a non-suspense letter, "X" and write the corrected money amounts to the left of each original point(s) of error. Write money amounts in dollars only or dollars and cents, as applicable. Arrowing is allowed for money amounts when there are no intervening entries between the arrow and the line to which the money is to be entered.

(4) Leave a working trail on the return when changes are made to the following items:

• Employer Identification Number (EIN) or Social Security Number (SSN)

• Tax Period

• Received Date

• Computer Condition Code (CCC)

• Correspondence Received Date (CRD)

(5) When working Reject re-inputs, circle out any previous Action Codes shown on the front of the return, if no longer applicable.

(6) When working Rejects, write "Voided" with the date above the DLN in red, when voiding a return.

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

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

(1) Enter a Correspondence Received Date (CRD) in the right margin of the address line in Line 1c.

(2) Enter the "CRD" date (in YYYYMMDD format) except in the following situations:

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

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

(3) If there is no reply edit document with CCC "3."

(1) IF the error condition involves an Illegible or Missing Name and/or Address, and the required data cannot be perfected through research of the document, then:

1. Enter Action Code "3."

2. Re-charge the return out of the block.

3. Prepare Form 4227, Intra-SC Reject or Routing Slip, attach it to the return.

4. Route it to the Rejects unit.

(2) Rejects will input a Notice of Action on the Master File as discussed below by using IDRS Command Code REQ77/FRM77.

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

2. When the TIN, Name Control, MFT, and Tax Period are present; enter TC 599 and enter Closing Code 17.

(1) Compliance functions secure returns from the taxpayer and also 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 does not file a required return, IRC 6020(b) is the authority for the IRS to prepare the return.

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

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

2. Compliance Function representatives must sign returns. If not, 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. Enter CCC "4."

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

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

5. Enter 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 enter 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. Enter 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.

Note: If there is indication penalties require suppression, edit the appropriate Computer Condition Code(s). See IRM 3.22.261.18.8, Computer Condition Codes (CCC) – Form 8288, for more information.

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

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

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

3. If Form 13133 is attached, enter the Computer Condition Code(s) checked on the form.

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

4. Enter 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 1 of the return and a Form 13133, Expedite Processing Cycle, attached with the "Delinquent Return" box checked.

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

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

3. Enter the Computer Condition Codes checked on Form 13133.

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

4. Enter CCC "W" if the received date is more than two years nine months after the Return Due Date. Do Not send 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 Arguments, and Exhibit 3.22.261-5, Potential Frivolous Arguments for Examination Review, for a list of recognized frivolous arguments made by businesses.

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

(3) 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.

(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 ERS/Rejects function, ERS/Rejects 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 ERS finds return characteristics not meeting Audit Code or Exam referral criteria it considers suspicious, CI is available to review the referral.

(5) If a suspicious return is found, and there is no sign Code and Edit (C&E) made a copy and sent to CI Referral, do the following:

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

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

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

CI Referral Routing

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

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

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

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

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

(1) A specific item transcribed from a form, schedule, or other document.

(2) Each Field may contain data, or be blank, and is identified by an Alpha/Numeric Field Designator.

1. Fixed Field – All spaces must be accounted for as there is no Field Breaker at the end of a Fixed Field.

2. Variable Field – All spaces need not be accounted for. However, all variable fields must contain a field breaker.

(1) A special symbol which indicates the end of a field.

(2) It appears at the end of a field, even if no data is in the field.

(3) A field that ends with a field breaker is known as a "Variable field."

(4) In addition to indicating the end of a field, the field breaker can also indicate if the amount of money in the field is positive (+) or negative (-). If it is not a money field, and a field breaker is required, a "+" is used.

(5) If it is necessary to change a field breaker on the error register (both for Error Resolution System (ERS) and Rejects) then:

1. Enter a positive field breaker as a comma ","

2. Enter a negative field breaker as a pound sign "#"

3. These two entries convert to the usual "+" and "-" after they are transcribed.

(6) Some fields (noted in the text) do not end with a field breaker. There is nothing to show the end of these particular fields. This type of field is known as a "Fixed field."

(7) When data is entered into a fixed field on the error register, and the data does not completely occupy the allotted number of spaces for the fixed field, then the unused spaces must be accounted for by entering the number of unused spaces in a circle immediately (See Figure 3.22.261-4, Potential Frivolous Arguments for Examination Review) after the last character entered. This is most commonly required in the name control, but also occurs if the entry in a non-essential fixed field is deleted.

(1) Action Codes (AC) are used to show specific information is missing or the record needs to be rejected from processing. The AC must contain enough details to show if correspondence should be sent to the taxpayer or which specific in-house research or action is required.

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

• Field Validity Errors,

• Section Validity Errors, and

• Math/Consistency Errors.

(1) Error Register fields are identified by a letter designation in the left most position of the field. See IRM 3.22.261.20, Section 01- Form 8288, and IRM 3.22.261.21, Section 02 - Form 8288.

(2) On the Error Register, an asterisk "*" designates an invalid field.

(3) However, any field may be corrected even if not designated invalid.

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

(5) When an invalid or math error condition is present, determine whether correction of the transcription errors resolve the situation.

(1) An invalid correction attempt error is caused by:

• An incorrect entry on the Error Register

• A ISRP error when transcribing data from the Error Register.

(2) A complete description of invalid attempts may be found in IRM 3.12.38, BMF General Instruction.

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

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

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

(1) When correcting dates or tax periods use the following formats:

• YYYYMMDD for Received Date.

• 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) Name fields permit the entry of up to 40 characters.

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

(1) Entries in this field may be one of the following:

• 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 4th and 5th digit ranges from 70-88, 90-92, and 94-98).

• IRS Number (IRSN) (entered in 9NN-NN-NNNN* format with valid 4th and 5th 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) format).

Note: When the TIN is a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) number, one must place a "(V = a valid SSN or ITIN)" or "W = an invalid SSN or Internal Revenue Service Number (IRSN)" at the end of the SSN/ITIN/IRSN number (e.g., 9NN-7N-NNNN V, NNN-NN-NNNN V, 9NN-05-NNNN W).

Reminder: If there is a TC 000 edited (orange ink) next to the TIN with a "V" or "W" do not route to Entity, because it has already been established on BMF. However, if the TC 000 is not present on the return, ROUTE to ENTITY.

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

(3) Form 8288 Only: When the TIN entered is an SSN, IRSN or an ITIN, a TIN Type indicator of "0" must be entered 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:

1. Enter or perfect the first TIN entered

2. Circle out the second or subsequent TIN(s)

   Note: If both an SSN/ITIN and EIN are present, use the SSN/ITIN and the individual’s entity name associated with the SSN/ITIN 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 adjust the TIN TYPE indicator as necessary.

(5) If the filer does not provide a TIN on Line 1b, correspond using IDRS Letter 3104C. However, first:

1. Research the return and its attachments

2. Research the name using local procedures

(6) Be sure to enter the correct TIN Type indicator "0" after each SSN, ITIN, or IRSN number.

(1) These instructions apply to the following fields:

• Field 01J (must always be present)

• Field 01I, Foreign Address.

• Field 02A, Property description (must always be present - but will not always be a street address)

  Example: The property description might be written as, "2311 Rosebud Way" or say, "timeshare week 6, unit 231" or say, "parcel 231, Lot 231 in Rose County, ledger # 1132, page 645," or "Butternut Mall at 11th and 65th Ave."

(2) This is a 35-position field which must be present.

(3) Valid characters are alpha (a-z) and numeric (0-9).

(4) If both a P.O. Box and a Street Address are shown on the return, enter the street address into the error register field.

(5) 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 and U.S. possession addresses).

• In general, a foreign address consists of the following: Line 1 (Foreign Address) - Address or P.O. Box number; Line 2 (Street Address) - City or town name, other principal subdivision (i.e., province, state, county etc.) and postal code if present; Line 3 (City) - Foreign country (expanded from foreign country code).

(6) If necessary, abbreviate the street address.

(1) This is a 22-position field for which an entry must be present. Valid characters are, alpha (a-z), and/or foreign country code.

(2) Research the ZIP Code directory to determine the city and/or state if the address is a U.S. address, and the ZIP Code is present.

(3) If the city and/or state cannot be determined from the ZIP Code or other available information (i.e., envelope, if attached or telephone contact, if a number is provided) enter the filer's address to the address line.

(4) If the city listed is a major (U.S.) city, enter the Major City Code (MCC) in place of the city and state information.

(5) Major City codes are not available for foreign cities, except "XJ" for San Juan, PR.

(6) The foreign city will also be entered in the city field, followed by the province code, and foreign country code. Use the foreign country code. See Document 7475 (State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries).

(7) If the address is a foreign address which includes a Province designation,

1. Circle out the name of the province on the State/Province line.

2. Enter the province abbreviation. See Figure 3.22.261-1, Canadian Province Codes.

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

(1) State fields are two-position fields for which entries must be present for all U.S. and U.S. territories addresses.

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

(3) When the address is a non-possession foreign country, enter a period followed by a space into the State Code field.

(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 contain at least five and may contain up to twelve characters.

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

1. Look through any attachments first, then

2. Research the ZIP Code Directory, and

3. Enter the correct ZIP Code.

(5) If the address is a foreign address, enter the foreign Postal (ZIP) Code.

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

(7) Whenever there is a period in the first position of the state code field (foreign address), no Zip Code can appear in the zip code field, or the field will be invalid.

(8) Zip Codes for U.S. territories are considered U.S. Zip Codes and must appear in the Zip Code field.

(1) Up to ten Computer Condition Codes (CCC) may be entered.

(2) An entry may or may not be present in the CCC field.

(3) Only the following characters are valid: D, G, O, R, U, W, X, 3, 4, or 7.

(4) See IRM 3.22.261.20.14, Field 01R - Computer Condition Code, for descriptions.

(1) These are 12-position fields for which entries may or may not be present, depending on the requirements of the particular field.

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

(3) Entries are entered in dollars and cents.

(1) Form 8288 is a two-page tax return used to show tax withheld from certain transactions and said amounts paid to the IRS.

(2) Form 8288 is also considered a transmittal form for Form 8288-A and Form 8288-C.

(3) There are no:

• Audit Codes

• Edit Sheet

• Attached schedules or forms

  Exception: Form 8288-A, Form 8288-C, and at times a Withholding Certificate.

• Extension Form

(4) There are only two sections which make up the record for the Form 8288 error register, which is processed in the SCRS and Rejects areas.

(5) Prior to tax period 200512 (Date of Transfer 12/13/2005), Form 8288 was processed to the NMF.

(6) The valid DLN will begin with "98140 in PSPC, 60140 in OSPC, 17641 in CSPC - NMF, and 09641 in KCSPC - NMF."

• The File Location Code must be "60 or 98" regardless of the address.

  Note: Do not renumber to "66 or 78" if a U.S. possession or to "28 or 29" if the address is in the U.S.

• The Tax Class is "1,"

• The Doc Code is "40."

• The Blocking Series is "000–999."

(7) The MFT is "17."

(8) The Program Code is "11330."

(9) The tax period can show months 01-12.

(10) All money amounts are in dollars and cents.

(1) This is an 11-position field, which may or may not be present.

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

(3) It is entered in the top right corner of Form 8288 and will have a “green rocker” below the amount.

(4) It is entered in dollars and cents, and must be positive.

(5) The field shows the amount of remittance paid with Form 8288.

(6) This field cannot be corrected with an Action code "6". If there is an error, SCRS will reject the return and Rejects will re-input the return indicating the correct amount of remittance on the Form 3893, Re-Entry Document Control, (in the "credit box").

(7) This field is invalid when there is no amount of total tax in Field 02I or when Field 02I underprints zero. Entering the tax into Field 02I or correcting the record (such as entering the correct amount into Field 02H) to eliminate the zero 02I underprint will clear the invalid condition in Field 01A.

(1) This is a six-position field which must be present.

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

(3) It is found in the upper, right corner of the return, to the right of the return title.

(4) It is entered in YYYYMM format.

(5) The earliest valid tax period for Form 8288 is 200512.

(6) The tax period is determined from the Date of Transfer (DOT), (Line 3 of Form 8288). The month and year of the DOT will be the month and year of the tax period.

(7) ERS will reject the return if the tax period is earlier than 200512. These returns should be transshipped to the KCSPC Accounting Branch NMF for processing. See IRM 3.22.261.11, Pre-Master File Processing of Form 8288.

(8) Form 8288 is due to the IRS 20 days after the date of transfer (DOT), or 20 days from the Date of Withholding Certificate (if applicable).

(9) Form 8288 is an ad-hoc return. This means each return is filed to reflect a particular transaction and not as a general summary of a year’s income, etc. Because of this there is no filing requirement (on INOLE) and is never considered (or coded) as a final return.

(10) If the tax period is later than the current date, compare the tax period to the DOT to be sure it is correct. If it is correct, ERS will reject the return (Action Code "3") and Rejects will hold it until the first day after the month of the tax period, when it will be worked.

(11) Because each Form 8288 reflects only one specific transaction, it is possible more than one return could be filed by the same taxpayer for the same tax period. This is not a concern for ERS or Rejects, as it will be handled by other areas.

(1) This is a 40-position field which must be present.

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

(3) It is located on Line 1a.

(4) Code and Edit will have underlined the Name Control.

(5) This name can be a person, corporation, trust, estate, partnership, Escrow Company, Title company, etc.

(6) If the name is missing or illegible, research IDRS using Command Codes INOLE and ENMOD.

(7) If the name and TIN are both illegible, reject the return with Action Code "3" and send to Entity.

(8) Use Action Code "6" to correct any errors.

(1) This is a four-position field which must be present.

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

(3) It is derived from the name on Line 1a.

(4) Field 01D is a fixed field (there is no field breaker). If it is necessary to enter or correct this field and the name control has less than 4 alpha or numeric characters, it will be necessary to enter the number of unused spaces in a circle immediately after the entry.

(5) If underprinted with a different Name Control (not "XXXX"):

1. First be certain the TIN TYPE indicator (Field 01F) field is entered correctly. If the Taxpayer Identification Number (TIN) is a Social Security Number (SSN), IRS Number (IRSN) or an ITIN then the TIN TYPE indicator must be "0," otherwise it must be "blank."

2. Verify the name control was transcribed correctly.

3. If transcribed incorrectly, enter the correct name control and enter the Entity Underprint Code (EUC) "1" into Field 01T, if the correct name control differs from the underprint.

   Note: Use Action Code "6."

4. If transcribed correctly, research using IDRS Command Codes NAMEI and/or NAMES for an SSN/ITIN, or NAMEB and/or NAMEE for an EIN.

   Note: If unable to locate the correct name, reject record using Action Code "3." ERS will send the case to Entity.

(6) If the name control underprints with "XXXX," then:

1. Be sure the TIN (Field 01E) and TIN TYPE Indicator (Field 01F) are both entered correctly on the register.

   Example: If the TIN is an EIN but 01F has a "0," the computer will treat the TIN as an SSN and will underprint the name control or cause an unpostable condition.

2. If correctly transcribed, first research using IDRS Command Codes NAMEI and/or NAMES for an SSN/ITIN, and NAMEB and/or NAMEE for an EIN.

   Note: If the EIN is written in orange ink (assigned by Entity) and entered correctly on the register and the TIN TYPE indicator is "blank," then enter a "1" into Field 01T.

3. If a good TIN is found, enter it into Field 01E, issue IDRS Letter 3875C (Missing or Incorrect EIN on Return) and be sure Field 01F is correct. Then enter a "1" into Field 01T (EUC).

Exception: If less than three digits of the EIN are incorrect, or if the EIN is transposed, different or missing.

4. Do not send Letter 3875C when:

• Three or less digits of the TIN are transposed, different, missing or

• INOLES indicates the account has been merged to (MT) or merged from (MF). If the MT TIN does not match the entity on the return, SSPND with Action Code "320" to Entity.

5. If a good TIN is not found, SCRS will reject the return and send it to Entity for assignment of an EIN.

(7) For complete information on individual name controls, refer to Document 7071 (Name Control Job Aid for Individual Master File (IMF) Taxpayers).

(8) For complete information on business entities (corporation, trust, estate, etc.), refer to Document 7071A (BMF Name Control Job Aid).

(1) This is a nine position field which must be present.

(2) The TIN is found on Line 1b.

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

(4) The TIN can be any of the following: See IRM 3.22.261.18.3, Taxpayer Identifying Numbers (TIN).

• EINs (entered in NN-NNNNNNN format), or

• SSNs (entered in NNN-NN-NNNN format), or

• ITINs (the middle digits of an ITIN number range from 70-88, 90-92, and 94-99).

• IRSNs (entered in 9NN-04-NNNN* if OSPC format). See IRM 3.22.261.18.3, Taxpayer Identifying Numbers (TIN).

  Note: For an IRSN, valid TIN in 4th and 5th positions need to include "01," "03," "11," "16," "40."

(5) If the TIN on the return is other than nine digits, missing, invalid or undetermined, check any attachments to the return for a valid TIN. If none is found, research IDRS using Command Codes NAMEI, NAMES, NAMEB, and NAMEE.

(6) If a valid TIN is found, cross out the invalid TIN on the return, issue IDRS Letter 3875C and enter the correct TIN next to it and into Field 01E on the register. Do not send Letter 3875C when:

• Three or less digits of the TIN are transposed, different, missing or

• INOLES indicates the account has been merged to (MT) or merged from (MF). If the MT TIN does not match the entity on the return, SSPND with Action Code "320" to Entity.

(7) If there are more than one TIN on the return, enter or perfect the first TIN present and cross out the other TIN(s).

(8) If the name is a BMF entity (corporation, estate, etc.), forward the return to the Entity function on Form 4227 for assignment of an EIN and enter Action Code "3" on the register.

(9) If it is later than the due date of the return, and the Entity function has assigned a new EIN, enter the Entity assignment date into Field 01O.

(1) This is one-position field which must be present.

(2) The valid characters for this field are "1", "2", "3", and "4".

• 1 = The Part of Form 8288 completed by the transferee, when the 10 or 15 percent FIRPTA tax is based on the amount realized of the sale of the United States Real Property Interest (USRPI). A USRPI is generally the parcel of real estate in the United States that is being bought, sold or transferred.

  Example: Part I of Form 8288.

• 2 = The Part of Form 8288 completed by the transferee, when the FIRPTA tax due is at 10 or 15 percent of the USRPI, or 21 percent (35 percent with a date of transfer before January 1, 2018) of the recognized capital gain dividend from the sale of the USRPI, or the taxpayer has cited IRC 1.1445–5(c)(1)(iii) or IRC 1445(e), or has made an IRC 897(i) Election.

  Example: Part II of Form 8288.

• 3 = The Part of Form 8288 completed by the transferee, when the 10 percent IRC 1446(f)(1) tax is due for certain dispositions of partnership interests for which the gain is treated as effectively connected with the conduct of a trade or business within the United States.

  Example: Part III of Form 8288.

• 4 = The Part of Form 8288 completed by the partnership for withholding distribution payments from the transferee (partner) when the transferee (partner) fails to withhold the required 10 percent IRC 1446(f)(1) tax from the transferor (foreign seller).

  Example: Part IV of Form 8288.

  Note: Taxpayers must only complete Part I, Part II, Part III, or Part IV of Form 8288. If more than one part is completed, Code and Edit will "X" the incorrect Part(s), based on entries on the attached Form 8288-A. See IRM 3.21.261.19.2, Foreign Investment in Real Property Tax Act (FIRPTA) for more information.

(3) The Part Number is entered by Code and Edit in the top left margin of the bold Part I, Part II, Part III, or Part IV block.

(4) Form 8288 is divided into five parts. The taxpayer must complete only one Part of Form 8288.

• Part I consists of Lines 6, 7a, 7b, 7c, and 8.

• Part II consists of Line 9 (checkbox), 10, 11a, 11b, 11c, 11d, and 12.

• Part III consists of Lines 13, 14a, 14b, and 15.

• Part IV consists of Lines 16a, 16b, 16c, 17 and 18.

• Part V consists of Lines 19, 20, 21a, 21b, and 22.

  Reminder: Part V is not processed by Submission Processing. This part is processed by Accounts Management.

(5) If the taxpayer completes Part I, Field 01G will have a "1."

(6) If the taxpayer completes Part II, Field 01G will have a "2."

(7) If the taxpayer completes Part III, Field 01G will have a "3."

(8) If the taxpayer completes Part IV, Field 01G will have a "4."

(9) If more than one Part is completed by the taxpayer, enter "1" in Field 01G if an entry appears in Field 02H. Otherwise, enter a "2" in Field 01G.

(1) Description - Field 01H is located in the Entity Section of the return.

(2) Valid Condition - Field 01H has 35 positions and the valid characters are alpha, numeric, ampersand, dash, slash or percent (%).

(3) Invalid Condition - Field 01H is invalid if any of the following conditions are present:

• The first position is blank.

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

• There are two consecutive blanks between significant characters.

(4) Correction Procedures: Correct coding and transcription errors.

(5) Use Action Code "6" to correct any errors.

(1) This is a 35-position field that may or may not be present. The valid characters are alpha (a-z), numeric (0-9), hyphen/dash (-), slash (/) and blank.

(2) This field must be used for foreign addresses. If the entire address does not fit, continue entering the address in the "Street Address" field. Abbreviate where possible to contain address to the two lines.

(3) Although a foreign address will usually require this field, overly long U.S. addresses can also be entered, beginning in Field 01I and continued into Field 01J.

(4) If the entire address fits into Field 01J, then Field 01I must be blank.

(5) Do not enter a U.S. address into Field 01I, and leave Field 01J blank. Field 01J must have an entry or it will be invalid.

(1) This is a 35-position field which must be present.

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

(3) This field must be used for the address. If the entire address requires 35 or less spaces, then the entire address will fit into this field. Otherwise, abbreviate where possible.

(4) See IRM 3.22.261.18.4, Street Address, for more instructions.

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

(2) The valid characters are, "numeric 0-9," and "blank."

(3) The telephone number is found on Line 1e, after the City line.

(4) Only the telephone number of a U.S. address or U.S. possession is entered. Do not enter a foreign telephone number, especially if the address is foreign.

(5) If the number is not legible, or if there is any doubt about a digit in the number, leave Field 01N blank.

(1) This is an eight-position field that may or may not be present.

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

(3) The format of the CRD is YYYYMMDD.

(4) The CRD is entered in the right margin of the street address Line 1c on Form 8288.

(5) The CRD must be later than the due date of the return.

(6) This field must not be present if CCC 3 is present in Field 01R.

(7) If the reply was not date stamped, use the postmark date from the envelope the reply came in.

(8) The field can also contain the date Entity assigned a TIN to the return (the Entity Assignment Date), subject to the same restrictions noted above. This date is usually entered in orange text, next to the TIN assigned.

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

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

(3) The format of the received date is YYYYMMDD.

(4) The received date is stamped onto the center area of the return.

(5) If the IRS received date was not stamped, enter it in the right-hand area of Line 2 and into Field 01P.

(6) If there is more than one received date on the return, use the earliest date and circle out the other dates.

1. If the Form 8288 was sent to a different campus or IRS office, even though it is supposed to be sent to Ogden, use the received date of the other IRS office.

2. If the received date on the return is stamped by another IRS office in a different country, this date is still acceptable and is entered into Field 01P.

3. If the received date is earlier than the tax period, review the return to make sure the correct tax period (YYYYMM) was used from Line 3, "Date of Transfer." If the tax period is not correct, enter AC "6" to the left of Section 01, and enter the correct tax period (YYYYMM) in Field 01B, this should eliminate the register error.

   Exception: If the tax period is correct, change the received date to one day after the date of transfer.

(7) See IRM 3.22.261.17, ♦Received Date♦, for more information.

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

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

(2) The valid codes are: D, G, O, R, U, W, X, 3, 4, and 7. CCC U is also used by Code and Edit but it is not valid on the error register.

(3) The CCC is edited in the left outside margin of Form 8288, Line 2.

(4) CCC "D" is used when reasonable cause exists for waiver of the failure to pay penalty.

(5) CCC "G" is used to identify an amended return.

(6) CCC "O" indicates a pre-settlement manual refund was paid.

(7) CCC "R" indicates a delinquent return with reasonable cause was filed and does not assess a Failure to File Penalty.

(8) CCC "U" is used to reject the unprocessable return or to issue a manual refund over $1 million dollars.

(9) CCC "W" indicates the return has been cleared by Statutes. See IRM 3.22.261.8, Statute Of Limitations.

(10) CCC "X" indicates excess remittance with return or overpayment be applied to another account.

(11) CCC "3" indicates there was no reply to correspondence sent to a taxpayer by either Code and Edit or Rejects.

(12) CCC "4" indicates the return was prepared by the IRS under IRC 6020(b).

(13) CCC "7" indicates the reasonable cause explanation offered by the taxpayer for filing or paying late was denied by the IRS.

(14) Leave "blank" if no CCC is required.

(1) This is a four-position field which may or may not be present.

(2) Valid characters are, "01," "02," and "90."

(3) The Taxpayer Notice Code is entered with Action Code "1" to the left of Section 01 on the error register and in the upper left corner of Form 8288.

(4) The purpose of Field 01S is this is the area where the TPNC will appear after the return has posted. Never enter a TPNC into this field.

(5) Never correct this field if it is invalid. It is not necessary. If the field is invalid because the incorrect TPNC appears in it (this will be on a loop register), ignore it and just re-enter the correct TPNC(s) to the left of Section 01 with Action Code "1."

(6) There are three valid TPNCs:

• TPNC 01 – "You made an error in computing the amount of FIRPTA tax under Section 1445."
  TPNC 01 is used for a math error in computing the amount of tax due on Lines 7a, 7b, 11a, 11b, 11c, or 14a of Parts I, II, or III (Field 02I).

• TPNC 02 – "No Copy of Withholding Certificate attached to support the reported 10 percent reduced withholding amount."
  TPNC 02 also applies to Lines 7a, 7b, 11a, 11b, 11c, or 14a of Parts I, II, or III but only when the taxpayer has computed tax at less than 10 percent (or zero) and the required withholding certificate (needed to authorize this lower tax rate) is not attached to Form 8288.

  Caution: In the case of an IRC 1446(f)(1) return, the transferee can pay a lesser amount without an approved Withholding Certificate (W/H Cert). These returns will have Part III completed. Prior year returns will include the statement "Section 1446(f)(1) withholding" (or something similar) at the top of Form 8288 and 8288-A.

• TPNC 90 – Open Paragraph.
  TPNC 90 is an open paragraph for any error not covered by a TPNC.
  TPNC 90 will also be used for post February 16, 2016 dispositions where withholding is less than the required 15 percent and no withholding certificate attached. Use open paragraph to say, "No Copy of Withholding Certificate attached to support the reported 15 percent reduced withholding amount." There is currently no specific TPNC for this amount.
  TPNC 90 will also be used for IRC 1446(f)(1) returns where Line 14b of Part III was not checked. Use open paragraph to say, "You made an error in computing the amount of withholding tax under Section 1446(f)(1)."

(1) This is a one-position field which may or may not be used by the tax examiner. It is not found on the return itself, but only on the error register.

(2) The valid characters are "1" or blank.

(3) Enter "1" in Field 01-T if the name control underprints. Make sure the correct name control is not the same as the underprint.

(4) If the correct name control is the same as the underprinted name control, leave Field 01T blank.

(5) Entity Underprint Codes "2" and "3" do not apply to this program because the tax period does not underprint.

(1) A signature (withholding agent/transferee, 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 revenue officer or compliance services representatives.

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."

• Dummy returns prepared by IRS.

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

• Correspondence is attached showing the taxpayer is responding to an IRS letter.

• Correspondence Imaging Inventory ("CII") returns with a Form 13596 (Reprocessing Returns) or Form 3893 (Re-Entry Document Control) attached.

(2) If a signature is missing, correspond when:

• 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 (non-standard return).

(3) If only the Entity information is present and there are no attachments containing tax data, correspond for a signature using Letter 3104C.

(4) If the jurat is altered or stricken (crossed-out), it may be a frivolous return. See IRM 25.25.10, Frivolous Return Program, shown in Exhibit 3.22.261-5, Potential Frivolous Arguments for Examination Review.

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

1. If the "signature declaration" is altered or stricken (crossed-out), it may be a frivolous return.

2. If the taxpayer responds with a self-prepared "signature declaration" it must contain the same language as the jurat on the tax return: i.e., "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."

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

(7) If the only item missing on a return is the signature, use Form 3104C or other approved Correspondence Action Sheet to correspond and enter Action Code "3."

(8) Correspond one time for the signature. If no response, enter CCC "3."

(1) This is a 35-position field which must be present.

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

(3) This field is located on Line 2.

(4) The entry in the field will frequently be in the form of an address (street, city, state, ZIP Code); however, it could be descriptions of other types of property, such as in the case of Section 1446(f)(1) withholding on dispositions of non-publicly traded partnership interests. Enter the most important information present on Line 2.

(5) See IRM 3.22.261.18.4, Street Address, for more instructions on entering the address.

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

(2) Valid characters are numeric 0-9.

(3) The format of the field is YYYYMMDD.

(4) The purpose of the Date of Transfer is:

1. It is used to establish the Return Due Date (RDD) (which is 20 days after the USRPI or interest in partnership sales transaction).

2. It is used to establish the Tax Period (Field 01B).

   Example: If the DOT is January 6, 2023, the tax period will be 202301.

3. It is the recorded date for when the actual sale of the U. S. Real Property Interest or partnership interest took place.

(5) The earliest Date of Transfer that is valid in Field 02B is 12/13/2005.

(6) When a withholding certificate (approved or rejected) is attached, the date on the withholding certificate letter should be on Line 4 (Date of Withholding Certificate) of Form 8288. If the taxpayer attaches a withholding certificate to Form 8288, verify the Date of Withholding Certificate in Field 02C. It is no longer necessary to line through the DOT and edit the new DOT above the original DOT and on the Form 8288 (Line 3) and Form 8288-A (Box 1). If Form 8288-A needs to be corrected, forward a corrected copy to the Code and Edit FIRPTA unit on Form 4227 to update the Form 8288-A database.

(7) It is no longer necessary to edit the original Date of Transfer (DOT) on the top right side of the Form 8288-A. Form 8288 and SCRS programing now calculate the due date of the return based on either the DOT or the Date of Withholding Certificate.

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

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

(2) Valid characters are numeric 0-9.

(3) The format of the field is YYYYMMDD.

(4) The purpose of the Date of Withholding Certificate is to extend the Return Due Date (RDD) (which is 20 days after the date of the withholding certificate).

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

(2) Valid characters are numeric 0-9.

(3) Use the following format for these entries: 001, 002, 010, 011, 999.

(4) If Field 02D is blank, count the number of attached Form 8288-A. You can tell this by seeing how many people are listed as the transferor (foreign seller) in the "Name of Person subject to withholding block."

(5) If for any reason this is not possible, correspond for the correct number using IDRS Letter 3104C. However, if there is no reply to the correspondence, enter "001" in Field 02D.

(6) If the number of Forms 8288-A is 1,000 or more, enter "999" in Field 02D.

(7) If Part IV of Form 8288 is completed, only one Form 8288-C can be attached. Therefore, Field 02D can only have a value of "001."

(1) This is a 12-position field which may or may not be present if Part II is completed. However, if Part II is completed by the taxpayer, Line 10 will have the amount subject to either 10 percent, 15 percent, or 21 percent withholding tax rate (or 35 percent with a date of transfer before January 1, 2018). Code and Edit will edit a 10 percent, 15 percent, or 21 percent (31 percent for distributions made before January 1, 2018) to the right of Lines 6, 10, or 13.

(2) Valid characters are numeric 0-9, and is entered in dollars and cents. There is no tolerance for this field, so it will come out to ERS.

(3) If Field 02H is blank, look at the attached Forms 8288-A and total the amounts shown in Box 2 of Form 8288-A. Enter this total in Field 02H, of Part II.

(4) If you are unable to determine the "Amount Subject to Withholding at 21 percent" on the attached Forms 8288-A, correspond for the information using IDRS Letter 3104C.

(5) If no response is received, divide the amount in Field 02I by 21 percent (or 35 percent if the DOT is before January 1, 2018), and enter the result in Field 02H (delete entry in Fields 02K and 02G). Use AC "1" and send TPNC 01.

(6) Field 02H is invalid if the entry in Field 01G is "1". Field 02H is valid only if 01G is a "2".

1. If Part II is used, change Field 01G from "1" to "2".

2. If Part I is used, delete the entry in Field 02H and enter it in either Field 02F or Field 02E depending on the date of disposition and amount realized (see IRM 3.22.261.1.1.1(8), Form 8288 Background, for specific information), and make 01G "1."

(1) Lines 6, 10, and 13 are the Amount Realized fields (Amount subject to withholding) on Form 8288. Code and Edit will edit a 10 percent, 15 percent, or 21 percent (31 percent for distributions made before January 1, 2018) to the right of Lines 6, 10, or 13.

(2) This is a 12-position field which must be present if Line 7b (Part I), Line 11b and Line 11c (Part II) have no entries.

(3) Valid characters are numeric 0-9, and is entered in dollars and cents. There is no tolerance for this field, so it will come out to ERS.

(4) This field must be significant (positive) if Part I is used.

(5) If Field 02F is blank, look at the attached Forms 8288-A and total the amounts shown in the Amount Realized box, which is Box 3 on Form 8288-A. Enter this total in Field 02F.

(6) If you are unable to determine the "Amount Subject to Withholding at 10 percent" on the attached Forms 8288-A, correspond for the information using IDRS Letter 3104C.

(7) If no response is received, and the amount withheld is for a disposition prior to February 17, 2016, or the sale of a personal residence where the amount realized is $1 million or less, divide the amount in Field 02I by 10 percent. Enter the result in Field 02F (delete entry in Fields 02K and 02G). Use Action Code "1" and send TPNC 01 Otherwise, divide the amount in Field 02I by 15 percent, and enter the result in Field 02F (delete entry in Fields 02K and 02G). Use Action Code "1" and send TPNC 01.

(1) Lines 6, 10, and 13 are the Amount Realized fields (Amount subject to withholding) on Form 8288. Code and Edit will edit a 10 percent, 15 percent, or 21 percent (31 percent for distributions made before January 1, 2018) to the right of Lines 6, 10, or 13.

(2) This is a 12-position field which must be present if Line 7a (Part I), Line 11a and Line 11c (Part II), and Line 14a (Part III) have no entries.

(3) Valid characters are numeric 0-9, and is entered in dollars and cents. There is no tolerance built into the program for this field, so it will come out to ERS.

(4) If Field 02E is blank, look at the attached Forms 8288-A and total the amounts shown in Amount Realized box, which is Box 3 of the Form 8288-A. Enter this total in Field 02E, of Part II. See IRM 3.22.261.21.6.

(5) If you are unable to determine the "Amount Subject to Withholding at 15 percent" on the attached Forms 8288-A, correspond for the information using IDRS Letter 3104C.

(6) If no response is received, and the amount withheld is for a disposition after February 16, 2016, and it’s not for the sale of a personal residence where the amount realized is $1 million or more, divide the amount in Field 02I by 15 percent. Enter the result in Field 02E (delete entry in Fields 02K and 02G). Use AC "1" and send TPNC 01. Otherwise, divide the amount in Field 02I by 10 percent, and enter the result in Field 02F (delete entry in Fields 02K and 02G). Use Action Code "1" and send TPNC 01.

(1) This is a 12-position field that must be present. This Field is found on Lines 7a, 7b, 7c, 11a, 11b, 11c, 11d, 14a, or 14b of Parts I, II, and III.

(2) The valid characters are numeric 0-9, and must be in dollars and cents.

(3) This field contains the amount of FIRPTA or Section 1446(f)(1) tax due (the amount of money required to be withheld at source from the transaction sale of the USRPI or dispositions of non-publicly traded partnership interests).

(4) Field 02I cannot be less than zero.

(5) Field 02I will underprint when it is less than 10 percent for dispositions prior to February 17, 2016 and certain post-February 16, 2016 dispositions, or underprint when it is less than 15 percent for dispositions after February 16, 2016, or less than 21 percent (Field 02H Part II), and both Fields 02K and 02G are not "blank," or do not contain a "1."

(1) This is a 12-position money field, showing the computer calculation of the FIRPTA or Section 1446(f)(1) tax, when different from the taxpayer’s figure.

(2) Field 02I is in dollars and cents.

(3) Field 02I will underprint:

1. The computer multiplies the amount in Field 02E, 02F, or 02H to determine the tax in Field 02I.

2. If the underprint is greater than 10 percent for dispositions prior to February 17, 2016 and certain post-February 16, 2016 dispositions of Field 02F, 15 percent for dispositions after February 16, 2016 of Field 02E in Part I or Part II, or 21 percent of Field 02H in Part II, assign TPNC 01. See Figure 3.22.261-7

(4) Accept the taxpayers (AC "0") figure if the difference in tax and the computer underprint is NOT greater than ≡ ≡ ≡ ≡.

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

(2) The valid characters are 1, 2 and Blank.

(3) The Bypass Indicator is edited in the outside right margin of Line 8 (Part I), Line 12 (Part II), or Line 15 (Part III). See IRM 3.22.261.21.11 (3), Field 02G - Reduced Withholding Amount Indicator (RWI), Line 7c - Part I, Line 11d - Part II, or Line 14b - Part III.

(4) Definition:

• "1" - tax is less than 10 percent, 15 percent, or 21 percent and is substantiated with an approved withholding certificate. No Math Error.

• "2" - tax is less than 10 percent, 15 percent, or 21 percent and is unsubstantiated with no copy of an approved withholding certificate attached to the return. Set Math Status Code 3.

• "blank" - tax is at 10 percent, 15 percent, or 21 percent and no error is present.

  Reminder: An approved withholding certificate is not required to reduce tax to less than 10 percent for Section 1446(f)(1) returns (Form 8288 Part III). All the taxpayer needs to do is check the box on Line 14b in Part III.

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

(2) Valid characters are 1 and blank.

(3) Description:

"1"

• The checkbox is checked

• A Withholding Certificate is attached to the Form 8288 (i.e., W/H Cert. SC/CG Letter 3307 to Letter 3312, and Letter 3497)

• An Entry on Line 7c (Part I), Line 11d (Part II), or Line 14b (Part III)

"Blank"

• The checkbox is not checked

• No Withholding Certificate is attached or required OR

• No entry on Line 7c (Part I), Line 11d (Part II), or Line 14b (Part III)

(4) If Field 02E or 02F is significant, and the amount in Field 02I is less than 10 or 15 percent of Field 02E or 02F Part I, II or III, or 21 percent of Field 02H Part II, then review Form 8288 and look for a copy of a withholding certificate. If one is attached, enter a "1" in Field 02K and 02G with an AC "6." Otherwise, leave "blank."

(5) Leave Fields 02K and 02G "blank" when a withholding certificate is not attached, and Field 02I, (Part I, Part II, and Part III) is 10 or 15 percent of the amount realized in Field 02F or 02E (Part I, II or III).

(6) Leave Fields 02K and 02G "blank" when a withholding certificate is not attached, and Field 02I, (Part I or Part II) is 21 percent of the amount subject to withholding in Field 02H Part II with an AC "6."

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

(2) The valid characters are:

• "1" = checkbox is marked, calculate tax at 21 percent.

• "blank" = Not Applicable.

(3) The field is located only in Part II on Line 9.

(4) Enter a "1" in Field 02J when the large trust election checkbox is marked. Enter AC "6."

(1) This is a 12-position field which may or may not be present.

(2) Field 02L is located in Part IV on Line 18.

(3) Field 01G needs to have a value of 4 for the amount in Field 02L to be valid.

(4) Field 02L cannot be blank if Field 01G has a value of 4.

(1) This is a 12-position field which may or may not be present.

(2) Field 02M is used to override the taxpayers computed tax calculation when different than the computer calculation (underprint).