3.11.13. Employment Tax Returns

(1) The purpose of Document Perfection is to code and edit (perfect) returns and other documents for input to the Master File (MF) through the Integrated Submission and Remittance Processing System (ISRP) or the Service Center Recognition Image Processing System (SCRIPS). In addition, Document Perfection forwards any other documents or attachments not related to the processing of the returns to the function responsible for handling them.

(2) Document Perfection is not responsible for checking the validity of the documents being processed. The computer will perform these functions after the returns and other documents are coded and edited as prescribed in this subsection.

(1) Authority for these procedures is found in IRC 6201(a) of the Internal Revenue Code and its corresponding Treasury regulations.

(1) The Director of Ogden and Kansas City Submission Processing are responsible for monitoring operational performance for the BMF Submission Processing campuses.

(2) The Operations Manager is responsible for monitoring operational performance for their operation.

(3) The Team Manager/Lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.

(4) The Team Employees are responsible to follow the instructions contained in this IRM and keep updated IRM procedures.

(1) Program Goals: Ensure documents are code and edit ready for transcription.

(2) Program Effectiveness are measured using the following:

• Embedded Quality Submission Processing (EQSP)

• Balanced Measures

• Managerial Reviews

(1) Quality Review conducts a statistical valid sample size review of completed work to ensure IRM guidelines are followed.

(1) For Terms, Definitions and Acronyms, See Exhibit 3.11.13-15, Glossary of Acronyms.

(1) The following is a list of related resources:

• Servicewide Electronic Research Program (SERP)

• Submission Processing Design Center (SPDC)

• Integrated Data Retrieval System (IDRS)

(1) Correspondence is all written communications from a taxpayer or their representative, excluding tax returns, whether solicited or unsolicited. This includes:

1. Written communications in response to IRS requests for information or data.

2. Written communications, including annotated notice responses, that provide other information or dispute a notice.

3. A telephone call that results in a written referral or research (Form e-4442, Inquiry Referral).

(2) The key to identifying taxpayer correspondence is to ask the following questions:

1. Is taxpayer waiting for a response from IRS?

2. Is taxpayer waiting for IRS to take action?

3. Is taxpayer asking a question?

(1) Edit marks are edited on the return for transcription to the Automated Data Processing (ADP) system through the Integrated Submission and Remittance Processing (ISRP) or SCRIPS. 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. Lines are left blank if the entry would be a zero amount unless otherwise instructed.

(3) Do not obliterate, alter, or erase 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 will 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 3.11.13.11.9, Correspondence Imaging Inventory (CII) Returns, and IRM 3.11.13.11.7, Re-Entry Document Procedures.

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

(1) Place an asterisk (*) to the left of an adjustment entry if the entry is a payment of an outstanding liability or Failure to Deposit (FTD) and not a true adjustment of income tax withholding or Social Security/Medicare or Railroad Retirement Tax Act (RRTA) tax liability for a prior period. The indication can be in the form of an attachment on the return.

1. Prepare a Form 3465, Adjustment Request, and route to Accounts Management (AM).

2. If the taxpayer shows that a FTD payment has been made on a return which does not provide for such payments, such as Form 8752, the money can be located on a Form 941 module and AM must be notified to transfer the money from the Form 941 module. See Figure 3.11.13-3.

(1) Process a signed return containing no line entries as a non-taxable return. This includes a signed return with a CP 139 attached or with a notation indicating not liable to file for the quarter such as "No Employees This Quarter", "No Wages Paid This Quarter", etc. Edit Schedule Indicator Code (SIC) 1. See Figure 3.11.13-4.

(2) Starting January 1, 2009, a taxpayer filing under IRC 3509 for "Misclassified Employees" is instructed to file a Non-Taxable Return with a zero on Line 10, write across the top of the return "Misclassified Employees", complete Part 5 (signature field), and attach Form 941-X to the return. When a Non-Taxable Form 941 return is received with "Misclassified Employees" written in the top margin and Form 941-X is attached process as follows:

1. Edit Action Trail "94X to AM"

2. Edit Computer Condition Code (CCC) "M"

3. Edit CCC "X" to the return. This will prevent any payment from refunding while the adjustment is being processed.

4. Detach Form 941-X and route to Accounts Management (AM) on Form 3465. Edit in remarks "3509".

(3) Process a Non-Taxable return with any indication of "Final", "No longer in business", "Do not file this form", "Previously Filed a Final Return", etc., using the following table:

(1) For returns completed in other than U.S. currency, process as filed. However, if corresponding for missing/incomplete item(s), include in the letter to resubmit in U.S. currency.

(1) A return is considered Amended based on the following:

• The Amended Box is checked.

• Words such as "Supplemental", "Corrected", or "Additional" are present.

• Any indication from the taxpayer that a previous return was filed.

Note: Words such as Copy or Duplicate are not sufficient indicators and must be accompanied by a statement from the taxpayer that a previous return was filed.

(2) Examine the return for attachments.

• Do not separate any related attachments from the return the taxpayer has submitted to explain the reason for the Amended return; AM will use this information.

• Detach any unrelated documents and route them to the correct function using Form 4227. Edit an Action Trail on the return.

(3) There is an indication the return is amended and:

(4) The following data must be present on all amended returns:

• Name Control,

• EIN,

• Tax Period,

• IRS Received Date,

• Signature, and

• Edit CCC “G”, see IRM 3.11.13.12.2(3).

  Note: No further editing is required.

(1) An Early Filed quarterly return is defined as a filed return where the Tax Period Beginning Date, is after the current (received) date.

(2) An Early Filed annual employment return is defined as a filed return where the Received Date is prior to the Tax Period Ending date.

(3) Below are the procedures to process an Early Filed Return:

(1) Tax return information can be received via fax as part of return perfection even if a taxpayer signature is required. In circumstances where contact with the taxpayer has been made and documented, faxed signatures are acceptable. For more information about accepting signed taxpayer documents by fax, see the most recent revision of the IRS Policy for Use of Fax, available at http://imdtrack.web.irs.gov/IG_Uploads/IRS.gov_No/NHQ-01-1019-0001.pdf.

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

(3) Code & Edit examiners will show the fax paragraph on Form 13195, Correspondence Action Sheet, or alternative version of the correspondence sheet, to advise taxpayers of the option to fax their response.

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

• IRM 21.1.3.2.3, Required Taxpayer Authentication.

• IRM 21.1.3.2.4, Additional Taxpayer Authentication.

(5) Before leaving any messages on a taxpayer's answering machine, review:

• IRM 10.5.1.6.7.2, Answering Machine or Voicemail.

• IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance.

(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) 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 3.11.13-14, Potential Frivolous Arguments for Examination Review, for a list of recognized frivolous arguments made by businesses.

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

(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) Reprocess a return posted to the wrong account or module to post it to the correct account module.

(2) Each re-entry return must have a Form 3893, Re-Entry Document Control, or Form 13596, Reprocessing Returns, attached.

• Form 3893 is used to re-input documents that have not posted to an account or module.

• Form 13596 is used to reprocess documents to the correct account or module, that had previously posted to the wrong account or module.

(3) Always leave the Form 3893 or Form 13596 on the front of the return. It must remain as a permanent part of the document. See Figure 3.11.13-6, for an example of Form 3893 attached to a return.

(4) Examine Form 3893 or Form 13596 to determine the action needed to make the return processable.

(1) Document Perfection is responsible for identifying refunds and for initiating requests for manual refunds.

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

(2) "CII" returns are shown with "CII Image. Do not correspond for signature" stamped below the signature line or "CII" annotated on the front of the return.

(3) Verify all edit marks and ensure placement is correct on a "CII" return.

(4) Follow the correspondence instructions below for processing "CII" return:

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

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

2. Secured tax returns are notated with "TC 59X" or "ICS" (Integrated Collection System) or notated Process as Original with an attached Form 13133, Expedite Processing Cycle. The "Delinquent Return" box on Form 13133 must be checked.

   Note: Secured returns noted with 599 in the left margin and Possible Duplicate or Potential Duplicate in the top margin must be processed as an original return. The notation of Possible/Potential Duplicate is relevant to Collections, a second return is being processed because the first return did not post as anticipated.

3.11.13.11.10.1 (01-01-2025)

♦IRC 6020(b) - Prepared by Collection♦

(1) When the taxpayer does not file a required return, IRC 6020(b) is the authority for the IRS to prepare the return. See Figure 3.11.13-7.

(2) These returns are identified by a notation, such as: "PREPARED AND SIGNED UNDER AUTHORITY OF IRC 6020(b) OF THE INTERNAL REVENUE CODE" (or any notation of "IRC 6020(b)"), which is located in the center bottom margin Page 1 or Page 2 of the return. These returns must also show TC 599 cc 38 or TC 599 cc 63 in the left upper margin.

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

2. Returns must be signed by Compliance Function Representative. If not signed, route to Rejects to cancel the DLN appearing on the document. Then, using local procedures, mail to the following address:
   Internal Revenue Service
   2970 Market St
   Mail Stop 5.E04.114
   Philadelphia, PA 19104

   Note: Starting July 1, 2013, we will accept the Revenue Officers (RO) electronic signature or typed signature as a valid signature on the return.

   Note: Accept a 6020(b) return as signed, when Form 5604 6020(b) Action Sheet is attached, and a signature is in the Signature of Initiating Collection Employee box.

   Note: Accept the Revenue Officers (RO) signature anywhere on the return.

   Note: Consider a 6020(b) return signed by the taxpayer as a signed return.

3. Edit CCC "4" See IRM 3.11.13.12.2.

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

4. Edit SIC 1 to Form 941, Form 943, Form 944 and Form 945

5. Edit CCC "D" if the Compliance Function 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".

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

7. 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.

8. If only the total taxes is present, perfect as withholding tax only.

(1) Any Form 941, Form 943, Form 944, or Form 945 with a Received Date that is equal to or later than the date shown in column 4 e.g., Statue start date plus two years and nine months, in the table below is a potential Statute Control return. . Also refer to the Exceptions list in number (3) and (4) below.

(2) Route Statute returns to the Statute Control Function daily or more often if needed.

(3) If any of the conditions listed below are present, do not route to the Statute Control Function for Clearance, edit CCC "W", and continue processing:

• Compliance IRC 6020(b) returns.

• Secured by Examination/Collections, including TEGE or TEGE Employee Plan (EP) Exam.

• Return with TC 59X or ICS notated on the face of the return.

• Returns that are substitute returns prepared by Examination (SFR) in top margin of the return.

• Return is a 2020 or prior year original. Due to the COVID-19 pandemic and subsequent Submission Processing (SP) and Accounts Management (AM) site closures, SP and AM developed procedures to bypass AM statute clearance and be processed. In addition, any 2020 or prior year returns previously cleared by AM statute will not be returned by SP to AM to be cleared again if the 90-calendar day statute stamp has expired.

(4) If any of the following computer paragraphs (CPs) or letters are attached to a BMF return, do not route to Statute Control Function for clearance. Edit CCC "W" if is determined that the return must be processed. See IRM 3.11.13.22, Routing Guide for Attachments, for more information.

• CP 259, Master File Generated 1st TDI Notice.

• CP 959, Master File Generated 1st TDI Notice (Spanish version).

• CP 518, Final Notice - Return Delinquency.

• Letter 112-C, Payment/Overpayment/Credit Applied; No Record of Return Filed.

• Letter 282-C, Return Not Received: Copy Requested/Received.

• Letter 2255-C, Delinquent Return (Form 720, Form 1041, Form 1065, Form 941 1120.

• Letter 2284-C, Delinquent Return (Form 940, Form 941, Form 942, Form 943).

(5) If a Form 12412, Operations Assistance Request (OAR), is received from TAS and the return is a potential Statute Control return but is not stamped cleared by Statute, give the return to your lead. The lead will contact the TAS employee listed on the OAR for rejection of the return and send it back to TAS for clearance by the Statute Unit.

(6) Statute returns are unprocessable until they are cleared by Statute Control. Do not process a return after the date in column 3 of paragraph (2) above, until Statute Control Function has cleared it.

(7) Edit CCC "W" if the Statute Control Function has cleared the return. Statutes will stamp or show clearance on the front of the return.

(8) Statute will stamp a return as "No Statute Issue," "Statute N/A" or a similar statement indicating there is no statute issue. Follow the chart below to determine if a CCC "W" is needed:

(1) Returns requiring prompt, quick, jeopardy, or termination assessments will be received in Document Perfection accompanied by one of the following forms:

• Form 2644, Recommendation for Jeopardy, or Termination Assessment.

• Form 2859 or Form 4922, Request for Quick or Prompt Assessment.

• Form 895, Notice of Statute Expiration.

• Form 3198, Special Handling Notice.

• Form 5403, Appellate Closing Record.

• Letter attached requesting a prompt determination under IRC 505(b) of the United States Bankruptcy Code.

(2) If the Form 2859 is attached to the return and there is a TC 59X with no Received Date, edit the Received Date on the return from the Date of Request box on the Form 2859.

(1) Any document issued prior to the specified Tax Period below is not available for ADP conversion. They are:

• Form 941E beginning after January 1, 1994,

• Form 942 or Form 942-PR prior to January 1, 1995,

• Form 943 prior to December 1961, or

• Form CT-1 returns, or other annual returns prior to 1982, or

• Quarterly returns prior to March 31, 1962.

(2) The document is a type that has not been included in the ADP System.

(1) The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate. Its job is to protect taxpayers’ rights by striving to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights (TBOR). TAS offers free help to taxpayers, including when taxpayers face financial difficulties due to an IRS problem, when they are unable to resolve tax problems, they have not been able to resolve on their own, or when they need assistance to address an IRS system, process, or procedure that is not functioning correct. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.

(2) TAS uses Form 12412, Operations Assistance Request (OAR), to start the OAR process of referring a case to the Taxpayer Services (TS) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19, Taxpayer Advocate Service, Taxpayer Advocate Case Procedures, Advocating With Operations Assistance Requests (OARs).

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

(4) The definition of "same day resolution" is within 24 hours. The following two situations meet the definition of "same day resolution":

• The issue can be resolved within 24 hours.

• IRS takes steps within 24 hours to resolve the taxpayer issue.

(5) When making a TAS referral, use Form 911, and forward to TAS following your local procedures.

(6) See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for more information.

(1) BMF Identification 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) Remove returns marked as "Protective Claims," "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.

(1) Action Codes are used to show whether correspondence, research, or some other action is needed. The Action Code will set the suspense period to be assigned to the return and place the return in the workable or unworkable suspense inventory. See Exhibit 3.11.13-12, Action Codes Chart for a list of valid Action Codes.

(2) When necessary, a three-digit Action Code will be assigned by the tax examiner (TE).

(3) Edit an Action Code for Form 941, Form 941-PR, Form 941-SS, Form 943, Form 943-PR, Form 944, Form 944-SP, Form 945, and Form CT-1 in the bottom left margin of the return directly below the words "For Privacy Act...". See Figure 3.11.13-8.

(4) Assign Action Codes in the following priority order:

1. Action Code 310 (Statute Control). See IRM 3.11.13.11.11, Statute Returns.

2. Action Code 320 (Entity Control).

3. Action Code 4XX.

4. Action Code 6XX.

5. Action Code 3XX.

6. Action Code 2XX (Correspondence).

(5) When more than one Action Code is needed attach Form 4227. If more than one Action Code of the same priority is required (e.g., 310 and 341), edit the Action Code with the shortest suspense period and attach Form 4227 to show the second unprocessable condition. Use Action Code 211, 215, 225, or 226 before Action Code 341 to ensure the return is complete before a manual refund is issued. Use the following table if more than one Action Code is needed:

(6) Edit the following Action Codes when a return cannot be perfected:

(7) Continue perfecting the return after editing the Action Codes.

(1) Computer Condition Codes (CCC) are used to identify a special condition or computation for the computer. CCCs post to the Master File (MF).

(2) Computer Condition Codes (CCC) editing location:

1. Form 941, Form 941-PR, or Form 941-SS (Revision 2005 and later), Form 944-SP - edit the CCC at the end of the "You MUST fill out both pages of this form and SIGN it" line.

2. Form 941, Form 941-PR, or Form 941-SS (Revision 2004 and prior), Form 943, Form 943-PR, Form 945, and Form CT-1 -edit the CCC in the bottom center margin.

(3) Computer Condition Codes (CCC) description:

(1) The Error Resolution System (ERS) displays data on terminal display screens with corrections made and integrity verified in a real time environment.

(2) The Code and Edit tax examiner (TE) will have the first opportunity to identify a record having a problem which requires correspondence, research, or other action in order to make the return processable. The tax examiner (TE) will determine the kind of action required and assign an Action Code to the return. The code will show whether correspondence, research or some other action is needed.

(1) A return is normally delinquent if it is not received on or before the Return Due Date. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. A return is not delinquent if the return is timely postmarked and mailed before, or on the due date. If the due date falls on a weekend or legal holiday, the return is timely if postmarked by the first business day following the weekend or holiday. See IRM 3.11.13.12.5 for instruction on determining the Received Date of the return.

(2) If the return is delinquent, check the form and/or attachments for an explanation of late filing. If found, send the taxpayer Letter 1382C, to inform the taxpayer that we have received their request. Do not code the return with CCC "R" if a pre-computed delinquency penalty is shown.

(3) See Exhibit 3.11.13-9, "Employment Tax Return Due Date Table" for the return due dates and the return delinquent dates for Employment Returns.

(1) The date a document is received in the Campus or IRS Office is the date stamped as the "IRS Received Date."

(2) An IRS Received Date is required on all the following returns:

• All timely filed returns,

• Delinquent and any prior Quarters,

• Amended (e.g., CCC "G" coded),

• Re-entry,

• 6020(b),

• Substitute for Return (SFR), and

• Pre-computed penalty and interest is present.

(3) Use the following instructions to determine the Received Date:

(4) The Received Date will or will not be stamped on the face of the return.

(5) A valid "Received Date" stamp will consist of the following:

• The word "Received,"

• Month (alpha or numeric),

• Day (for example, "1" or "01"),

• Year -four digits in "YYYY" format, and

• "Area office," "Campus", "Field Office", "Taxpayer Assistance Center" (TAC) plus the City location or function area within one of these sites (e.g., Compliance Services Collection Operations (CSCO), Examination, Image Control Team (ICT). Correspondence Imaging Inventory (CII), Accounts Management (AM), etc.).

Exception: Not all IRS offices are designated places for filing, and not all IRS employees are authorized to accept a tax return for processing. If a return contains a Received Date stamp from other than a Taxpayer Assistance Center (TAC), Lockbox, or IRS campus (Compliance, Accounts Management (AM), or Submission Processing (SP), circle out the invalid Received Date and edit the correct Received Date according to instructions below. For example, returns received by the Taxpayer Advocate Service (TAS) or the IRS Office of Chief Counsel is not properly filed and a Received Date by that office is not the "IRS Received Date."

(6) If a Received Date stamp is not present or the date is illegible or invalid, edit the IRS Received Date in MMDDYY format in the middle of page 1 of the return. Edit the IRS Received Date according to the following priority:

• The earliest legible Postmark Date (U.S. Postal Service, Foreign Postmark or Private Delivery Service) on the envelope.

• Service Center Automated Processing System (SCAMPS) digital date.

• The Revenue Officer's Signature date.

• The Signature date only if within current year.

• The Julian Control Date minus 10 days.

• The current date minus 10 days.

Note: If the Re-entry Documents has no Received Date, edit the due date for the Tax Period shown on the return as the Received Date.

1. Rules for using the U.S. Postal Service (USPS) Postmark, Foreign Postmark date, or Private Delivery Service (PDS) postmark are as follows:

IF	THEN
An envelope is not attached,	Use the Postmark Date stamped on the face of the return.
A document was returned for insufficient postage,	Use the Postmark Date that coincides with the correct delivery of the return.
The postmark is missing, and the envelope is certified,	Look for the USPS.com Track & Confirm record that has been attached to the return (must be before the envelope). Use the Acceptance date on the record to determine timeliness and follow normal editing procedures. If the USPS.com Track & Confirm record is not attached, no action is required.
An envelope has a USPS and private metered postmark,	Always use the USPS postmark.
An envelope has foreign and private metered postmark,	Always use the foreign postmark.
An envelope has two private metered postmarks,	Always use the earliest private metered postmark.
An envelope has only one private metered postmark,	Use the private metered postmark.

(7) Edit the Received Date as follows:

(8) When a 941 is delinquent and the taxpayer explains the return is late due to the rejection of a timely filed electronic return, check the return for a MeF rejection notification.

(9) If a MeF rejection notification is not attached, perfection of the Received Date is not necessary. If a notification is attached, edit the IRS Received Date in MMDDYY format as follows:

(10) If a return has been faxed to another area of the IRS and then sent to Submission Processing for processing, do not edit the Enterprise Electronic Fax (EEFax) Date as the IRS Received Date. Edit a Received Date according to normal procedures.

(11) Accept a Received Date entered by means other than a normal date stamp (for example, a handwritten date in brown, red, orange, or green), or a typed date by an IRS employee, cash register stamp date, etc.

(12) See Figure 3.11.13-10, for an example of a correctly edited Received Date on a return.

(1) The Third-Party Designee election was created to allow a designated individual to inspect and/or receive information about the taxpayer about Form 941, Form 941-PR, Form 941-SS, Form 943, Form 943-PR, Form 944, Form 944-SP, Form 945 and Form CT-1 if questions arise during processing.

(1) A signature and jurat is required on all returns except the following:

• Returns prepared under IRC 6020(b). These returns must be signed by a Compliance Services representative. See IRM 3.11.13.11.10.1, IRC 6020(b) - Prepared by Collection.

  Note: Starting July 1, 2013, we will accept the Revenue Officers (RO) electronic signature or typed signature as a valid signature on the return.

  Note: Accept an IRC 6020(b) return, as signed when Form 5604, IRC 6020(b) Action Sheet is attached, and a signature is present in the "Signature of Initiating Collection Employee" box.

• Returns prepared by Examination, for example "SFR" (Substitute for Return) or "SUBSTITUTE RETURN" (See IRM 3.11.13.11.5) Examination Prepared.

• Dummy returns prepared by IRS.

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

• A blank return with a CP 139 attached (e.g., notification that Form 941 or Form 940 will no longer be required because four consecutive 941 tax years were received with "NO LIABILITY").

• Correspondence containing a signature and jurat is attached showing that the taxpayer is responding to an IRS letter (See paragraphs (5) below).

• Re-entry returns originally filed electronically (E-File). The presence of Mod E-File printouts or E-file Graphic Print will identify these returns as Do Not Process in lieu of an actual return.

  Note: If the E-file Graphic print states "E-file GRAPHIC Print Do Not Process" in the top margin, circle the words "Do Not Process."

(2) Do not correspond for a signature on "CII" returns that have Form 13596, Reprocessing Returns attached. See IRM 3.11.13.11.9, "Correspondence Imaging Inventory (CII) Returns", for processing instructions.

(3) If a signature is missing:

(4) If the jurat is altered or stricken (crossed out), See IRM 3.11.13.11.6, Frivolous Arguments.

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

1. If the "signature declaration" is altered or stricken (crossed-out), see Identification of Frivolous Arguments in IRM 3.11.13.11.6, for frivolous return instructions.

2. If the taxpayer responds with a self-prepared "signature declaration," it must contain the same language as the jurat on the 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) Since tax examiners (TE) are not expected to be handwriting experts, Treas. Reg. 301.6064-1 allow the IRS to presume that the signature on a return, statement or other document is the true signature of the person who actually signed the document.

(7) Facsimile Signature - Rather than actually signing each return, Revenue Procedure 2005-39 allows an officer or duly authorized agent to use a facsimile (computer-generated or rubber stamp) signature when filing certain forms (such as Form 941, Form 943, Form 944, Form 945, or Form CT-1). If a facsimile signature is used, the person filing the form must keep a letter, signed by the officer or agent authorized to sign the return(s) declaring under penalties of perjury that the facsimile signature appearing on the form is the signature adopted by the officer or agent direction, and that the facsimile signature was placed on the return by the officer or agent direction.

1. A signature of an officer or duly authorized agent, etc. can be printed, typed, rubber stamped, computer generated, or affixed by some other mechanical device, and is acceptable as a signed return on Form 941, Form 943, Form 944, Form 945, or Form CT-1. A signature refers to the name of the officer or agent who attests that the information on the return is true, correct, and complete. See Figure 3.11.13-11, for an example of a return that has been signed using a mechanical device.

2. The signature will appear on either "Sign your name here" or "Print your name and title" line.

3. If no signature is found, follow signature correspondence procedures in IRM 3.11.13.12.7.

(8) Only one correspondence attempt is required for a signature.

(1) The Paid Preparer Section is located below the signature area:

• Form 941 - at the bottom of Page 2 of the return (Revision 01-2020 and prior).

• Form 941 - at the bottom of Page 3 of the return (Revision 07-2020 and later).

• Form 943 - at the bottom of the return (Revision 2019 and prior).

• Form 943 - at the bottom of Page 2 of the return (Revision 2020 and later).

• Form 944 - at the bottom of Page 2 of the return (Revision 2019 and prior).

• Form 944 - at the bottom of Page 3 of the return (Revision 2020 and later).

• Form 945 - at the bottom of the return.

• Form CT-1 - at the bottom of the return (Revision 2019 and prior)

• Form CT-1 - at the bottom of Page 2 of the return (Revision 2020 and later)

(2) No action is required on amended returns.

3.11.13.12.8.3 (10-27-2015)

♦Paid Preparer Phone Number♦

(1) If a complete Paid Preparer Phone Number is located on the Paid Preparer's Phone Number line, no editing of this line is necessary.

(2) If the Paid Preparer's Phone Number is incomplete, illegible, or less than 10 digits, review the return and all attachments. See Figure 3.11.13-12.

Note: If more than 10 digits are present, continue processing the return. Only the first 10 digits will be transcribed (captured).

IF	THEN
A complete Paid Preparer's Phone Number is located elsewhere on the return or attachments,	Edit to the "Phone No." line.
A complete Paid Preparer's Telephone Number is not located, or the number is illegible,	Asterisk to the left of the incomplete or illegible phone number.

(1) All returns must have a Tax Period. If the return requires editing of the Tax Period, it will be edited based on the form revision and the form type; quarterly or annual. Determine if the Tax Period must be edited using the rules for:

• Form 941, Form 941-PR, and Form 941-SS.

• Form 944 and Form 944-SP.

• Form 943, Form 943-PR, Form 945, and Form CT-1.

3.11.13.13.1.1 (01-01-2025)

Entity Perfection - Tax Period (Form 941, Form 941-PR, & Form 941-SS)

(1) Process Form 941, Form 941-PR and Form 941-SS as follows:

IF	AND	THEN
One Tax Period box is checked,	There is no taxpayer indication on the return or attachments of another Tax Period,	No editing is necessary.
One Tax Period box is checked,	A Tax Period that agrees with the checked box has been edited on the return,	No editing is necessary.
One Tax Period box is checked,	There is an indication of a Tax Period elsewhere on the return or attachment that does not agree with the check box,	Edit the correct Tax Period on top of the "Report for this quarter... "box in YYMM format.
No Tax Period box is checked,		Review the return and the attachments for the correct Tax Period, If found "X" the box for the Tax Period indicated on the return or attachments, Note: If there is an indication the taxpayer is filing a current revision form for a Tax Period other than a current processing YEAR Tax Period, follow the instructions below. If the Tax Period cannot be determined, "X" the box indicating the current Tax Period being processed.
There is an indication the taxpayer is filing a current revision form for a Tax Period other than a current processing YEAR Tax Period,		Edit the correct Tax Period on top of the "Report for this quarter..." box in YYMM format.
The return would be considered an early filed return,	All three are present on the return: Current Year Form revision, 3rd or 4th quarter Tax Period box checked, Tax Data appears on the return,	Edit the year of the Tax Period to the Prior Year (PY) (i.e., If current Year Form Revision 2024, edit the year to "2023"). Edit the Tax Period above the "Report for this Quarter" box in YYMM format. See Figure 3.11.13-13. Caution: This type of return can be seen in the 4th, 1st, or 2nd quarter return processing time frame, when the taxpayer has access to the latest revision of Form 941.
More than one Tax Period box is checked,		Review the return and attachments for a taxpayer indication of the correct Tax Period, Edit the correct Tax Period on top of the "Report for this quarter..." box in YYMM format, If the Tax Period cannot be determined, edit, and process the return for the earliest Tax Period shown by the taxpayer. See Figure 3.11.13-14.

(2) Process Prior Year (PY) Revision Form 941 (Revision 2005 - 2024), Form 941-PR and Form 941-SS as follows:

IF	AND	THEN
One Tax Period box checked,	There is a taxpayer notation indicating a Tax Period in the current year, Note: Consider a Schedule B showing a current year as an indication a Tax Period in the current year,	Edit the Form Title Year of the return to the current processing year (e.g., "2024" must be edited to "2025"). Editing of the Tax Period above the "Report for this Quarter" box is not necessary. See Figure 3.11.13-15. Exception: Do NOT change the Form Title Year if doing so will make the return an early Filed Return.
One Tax Period box checked,		Edit the Tax Period on top of the "Report for this quarter..." box in YYMM format, based on the Form Revision and the Tax Period check box.
No boxes checked,	The return shows a Pre-printed label or there is a taxpayer indication on the return or attachments,	Edit the correct Tax Period based on the information on the return or attachment on top of the "Report for this quarter..." box in YYMM format. See Figure 3.11.13-16.
No boxes checked,	There is NO indication of a Tax Period on the return or attachments,	Process as a current quarter, current year return. Edit the Tax Period on top of the "Report for this quarter..." box in YYMM format.
More than one Tax Period box is checked,		Review the return and attachments for the correct Tax Period, If the Tax Period cannot be determined, edit, and process the return for the earliest Tax Period shown by the taxpayer, Edit the correct Tax Period on top of the "Report for this quarter..." box in YYMM format.

3.11.13.13.1.2 (01-01-2023)

Entity Perfection - Tax Period (Form 944 & Form 944-SP)

(1) Process Form 944, and 944-SP as follows:

IF	THEN
Return is for current processing year,	No editing is necessary.
Return is for prior processing year,	Edit the Tax Year in "YY" format above the "Who Must File Form 944". See Figure 3.11.13-17.

3.11.13.13.1.3 (01-01-2025)

Entity Perfection - Tax Period (Form 943, Form 943-PR, Form 945, & Form CT-1)

(1) Process Form 943, Form 943-PR, Form 945, and Form CT-1 as follows:

IF	AND	THEN
The return entity shows only the current Tax Year,	There is no other indication of a Tax Year on the return or attachment,	No editing is necessary.
The (943, 943 PR and 945) return shows only a prior Tax Year,	There is no other indication of a Tax Year on the return or attachment,	Edit the correct Tax Year above the tax year revision in the "YY" format. See Figure 3.11.13-18.
The CT-1 return shows only a prior Tax Year,	There is no other indication of a Tax Year on the return or attachment,	Edit the correct Tax Year in the upper right portion of the entity area in "YY" format. See Exhibit 3.11.13-8, Form CT-1 Employer’s Annual Railroad Retirement Tax Return 2024.
The taxpayer has notated on the CT-1 return or attachment the correct Tax Year,		Edit the correct Tax Year in the upper right portion of the entity area in "YY" format. See Exhibit 3.11.13-8, Form CT-1 Employer’s Annual Railroad Retirement Tax Return 2024.
The taxpayer has notated on the (943, 943-PR and 945) return or attachment the correct Tax Year,		Edit the correct Tax Year above the tax year revision in the "YY" format. See Figure 3.11.13-18.
The Tax Year is missing, incomplete or illegible (Form 943, Form 943-PR and Form 945),		Review the return or attachments for the correct Tax Year, If found, edit the correct Tax Year above the tax year revision in the "YY" format. If the Tax Year cannot be determined, edit the Tax Year as the current processing year Tax Year above the tax year revision in the "YY" format.
The Tax Year is missing, incomplete or illegible (Form CT-1)		Review the return or attachments for the correct Tax Year, If found, edit the correct Tax Year in the upper right portion of the entity area in "YY" format. If the Tax Year cannot be determined, edit the Tax Year as the current processing year Tax Year in the upper right portion of the entity area in "YY" format.
More than one Tax Year is shown on the return,		Review the return or the attachments for the correct Tax Year, If the Tax Year cannot be determined, edit, and process the return for the earliest Tax Year shown by the taxpayer, Edit the correct Tax Year above the tax year revision in "YY" format (Form 943, Form 943-PR, and Form 945). If the return is a Form CT-1 edit the correct Tax Year in the upper right portion of the entity area in "YY" format.
The taxpayer enters the due date of the return instead of the Tax Year ending date (Form 943, Form 943-PR, Form 945, and Form CT-1),		Perfect the Tax Year to reflect the Tax Period ending date.

(1) The EIN is a nine-digit number (XX-XXXXXXX) assigned to identify the taxpayer.

(2) Determine the EIN as follows:

(3) If Page 1, Page 2, and/or Page 3 of Form 941, Schedule B (Form 941), Schedule R (Form 941), Form 941-PR, Form 941-SS, Form 943, Form 944, Form 944-SP or Form 945, are on a separate sheet:

1. Make sure that the EIN is present on Page 2 and/or Page 3 and matches the EIN in the entity of Page 1.

2. If the EIN is missing on Page 2 and/or Page 3 on a one-sided form and the name on Page 2 and/or Page 3 matches the name on Page 1, edit the EIN from the entity section of the return followed by asterisk (*) to the left of the EIN box.

3. If the EIN on Page 2 and/or Page 3 does not match the EIN in the entity of Page 1, edit an edit the EIN from the entity section of the return followed by an asterisk (*) to the left of the EIN box on Page 2 and/or Page 3.

4. If an EIN is present on Schedule B, Schedule R, or Form 945-A, does not match the EIN in the entity section of the return, edit the EIN from entity section of the return followed by an asterisk (*) to the left of the EIN box on Schedule B, Schedule R, or Form 945-A.

5. If the EIN on Schedule B, Schedule R, or Form 945-A is not present, edit the EIN from the entity section of the return followed by an asterisk (*) to the left of the EIN box on Schedule B, Schedule R, and Form 945-A.

(4) If a Form 941, Form 941-PR, Form 941-SS, Form 943, Form 943-PR, Form 944, Form 944-SP, Form 945 or Form CT-1 is received in C&E with an EIN beginning with "69," forward the return to Entity Control for a new EIN.

(1) The Name Control consists of four characters or less:

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

2. Disregard the word "The" in the Name Control only when more than one word follows.

(2) See Job Aid Document 7071A, Name Control Job Aid - For Use Outside the Entity Area, to determine the Name Control.

(3) It is no longer necessary to edit a Name Control on Form 941 returns that will be processed through SCRIPS. Do not take any action if the Name Control is already edited.

(4) Edit the Name Control on the following forms processed through ISRP; Form 941, Form 943, Form 944, Form 945, and Form CT-1 as follows:

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

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

(3) A change in the "in-care-of" name can be determined by any of the following:

• A check mark in the "Address change" box (Form 943 and Form 945), or

• An indication that the "in-care-of" name is changed (i.e., the taxpayer crossed out the original "in-care-of" name and added the new name or has entered a new "in-care-of" name in brackets)

(1) If the Form 941, Form 943, Form 944, Form 945, or Form CT-1 indicates bankruptcy (e.g., shows RECEIVER, TRUSTEE, or DEBTOR IN POSSESSION) in the entity area or on an attachment, route to Entity Control using local procedures.

(1) Perfection of the address is necessary when the mailing address (Street or P.O. Box) is not easily identified. For a list of correct street abbreviations, see Document 7475, State and Address, Abbreviations, Major City Code (MCCs), Zip Codes, and Countries.

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

(3) If the return requires that the street address, city, state, or ZIP Code be changed, edit an asterisk (*) to the left and line through the incorrect entry and enter the correction in the entity where space allows.

(4) Perfect the address are as follows:

(5) APO (Army Post Office), DPO (Diplomatic Post Office) and FPO (Fleet Post Office) addresses are considered domestic addresses. If an address appears as APO, DPO or FPO convert based on the ZIP Code (i.e., If the address appears as APO New York, NY 091XX; convert to APO AE 091XX). See Figure 3.11.13-22, for an example of an edited APO/FPO address. Refer to the APO/DPO/FPO Conversion Chart below:

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

(2) Returns with Army Post Office (APO)/ Diplomatic Post Office (DPO)/Fleet Post Office (FPO) addresses are considered domestic addresses. See IRM 3.11.13.13.6.

(3) Route returns with a foreign address to Ogden Submission Processing Campus (OSPC) for processing. Prepare Letter 86C Referring Taxpayer Inquiry/Forms to Another Office, to inform the taxpayer that the return has been sent to OSPC.

(4) Returns with addresses in the following U.S. Possessions/Territories are considered foreign for processing purposes but are edited in the same way as a domestic address.

1. A two-character alpha code must be edited for the Possession/Territory name:

   Note: A ZIP Code must be present for U.S. Possessions/Territories. Edit the correct ZIP code if not provided. See Exhibit 3.11.13-17, U.S. Possessions ZIP Codes.

U.S. POSSESSION/TERRITORY	ALPHA CODE
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

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

1. The foreign country must be the last entry in the address.

2. Edit an asterisk and line through the foreign country and edit the foreign country code preceded by "/"and followed by"/$" (e.g., "/GM/$" is edited for Germany). See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, for official foreign country codes. See Figure 3.11.13-23, for an example of an edited return with a Foreign Address.

Note: International (OSPC ONLY) Arrow country or country codes, province code and postal codes to the proper address location in the correct foreign address format.

3. A unique country code will be edited for returns filed with an address in Canada. See IRM 3.11.13.13.7.1, Country Code - Canada.

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

4. If the foreign address is from Australia, Brazil, Canada, Cuba, Italy, Mexico, or the Netherlands, check if the address contains a province, state, or territory.

Note: There will 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 other information.

IF	THEN
A province, state or territory is present,	Edit an asterisk and line through the province, state, or territory name. Edit the correct abbreviation. See Exhibit 3.11.13-18, Province, Foreign State, and Territory Abbreviations.
A province, state or territory name is shown in abbreviated format,	Continue editing the return.
A province, state or territory is not present,	Continue editing the return.

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

(1) Form 941 and Form 944 entities on the BMF tax modules contain an employment code. Employment Codes identify businesses which are other than normal business entities. Employment Codes will be displayed by some IDRS Command Code (CC) (e.g., INOLE, BMFOL).

(1) Perfect line for validity only. All alpha words must be written in numeric form. Edit an asterisk (*) to the left of the entry and edit the correct number to the left of the asterisk (*).

(2) If the amount shown on Line 1 is a misplaced entry (the entry is in dollars and cents) and that amount must be on Line 2 (i.e., Line 1 is the same amount shown on Line 5a and/or 5c) edit as follows:

1. If Line 2 is blank, then place an asterisk to the left of the entry on Line 1 and edit the amount to Line 2.

2. If Line 2 is the same amount as Line 3, then place an asterisk to the left of the entry on Line 1 and then to the left of the entry on Line 2 and edit the amount on Line 1 to the left of the asterisk on Line 2.

(3) If the entry on Line 1 appears to be a number of employees for all four quarters, a number followed by a comma, space or dash and followed by another number (i.e., 24, 24, 22, 23), place an asterisk next to the entry.

(1) There must be an entry on Line 2. Edit an entry to Line 2 as required based on the available information on the return or on any attachment(s). Process Line 2 as follows:

(2) If the Form 941 is filed for employers in any U.S. territories listed below and Line 2 has an amount, edit an asterisk (*) to the left of Line 2:

• Puerto Rico

• American Samoa

• Guam

• Commonwealth of Northern Mariana Islands

• U.S. Virgin Islands

(1) Perfect this line for validity. Ensure all entries are numeric in dollars and cents. If the taxpayer has entered dollars only, examiners do not have to correct the entry to dollars and cents.

(2) Do not change the entry on this line unless you are able to identify from the return or an attachment that the amount shown on the line is the difference between the correct income tax withheld for the quarter and an adjustment.

1. If an adjustment is included with the entry on Line 3, edit an asterisk (*) to the left of the amount.

2. Edit the correct amount of income tax withheld to Line 3, left of the asterisk.

(3) If the Form 941 is filed for employers in any U.S. territories listed below and Line 3 has an amount, edit an asterisk (*) to the left of Line 3.

• Puerto Rico

• American Samoa

• Guam

• Commonwealth of Northern Mariana Islands

• U.S. Virgin Islands

(1) Churches and qualified church-controlled organizations opposed to the payment of Social Security and Medicare taxes for religious reasons will elect exemption from the payment of the employer's share of these taxes. However, Form 8274, Certification by Churches and Qualified Church Controlled Organizations Electing Exemption from Employer Social Security and Medicare Taxes, must be filed with the Entity function at the Ogden Submission Processing Campus.

(2) The electing organization must continue to withhold Federal income tax on wages, tips, and other compensation, and to report this income and the tax withheld on Form W-2, Wage and Tax Statement. The organization must also file Form 941 to report both the wages covered by the election and the wages of any employees engaged in unrelated business activities whose wages are not covered by this election and are subject to both the employee and employer's share of Social Security and Medicare taxes.

1. The electing church or organization can permanently revoke the election by paying Social Security and Medicare taxes for wages covered under the election. If the taxpayer files a Form 941 indicating that the election is being revoked, send to Entity Control for filing requirement change.

2. The IRS will permanently revoke the election if the organization does not file Form W-2 for two or more years and does not provide the information within 60 days after a written request by the IRS.

(3) If a Form 941 is received with no entries on Lines 3 through 7 and the taxpayer either has attached a letter to the return protesting the tax on religious grounds or has written a protest on the return, then send the return to the Entity Control function with a request to research for a Form 8274.

(4) If a Form 8274 is attached to a timely filed Form 941 (with or without entries in Lines 3 through 7):

1. Detach Form 8274 and notate on the form, "Detached from return with Church FICA issue." Forward the Form 8274 to:
   Ogden Submission Processing Campus
   Entity Control
   Ogden, UT 84201-0027

2. Notate on the return's left margin, "F8274 to ECU" and process the return without any Social Security or Medicare wages being shown on the applicable lines.

(1) The churches with the notation, "CHURCH FICA ISSUE" did not elect the exemption from Social Security and Medicare taxes permitted by IRC 3121(w).

(2) These taxpayers are forever barred from filing Form 8274. The wages must be reported on Form 941.

(3) Process a Form 941 with the notation "Church FICA Issue" as follows:

(1) Follow the procedures below for the box on Line 4, Form 941:

(2) Follow the procedures below for the box on Line 4, Form 941-PR, and Form 941-SS:

(1) Line 5a, Taxable Social Security Wages amount in Column 1 is multiplied by the taxable percentage rate listed on the form line to equal the tax in column 2.

(2) 2024 and later - Perfect Line 5a as follows:

(3) 2013 - 2023 - Perfect Line 5a as follows:

(4) Domestic Only - If the taxpayer indicates they employ family members, and the Line 2 entry represents the amount of their wages, but column 1, Lines 5a and column 1, 5c does not show an entry, then edit the Line 2 amount to column 1, Line 5a and 5c. DO NOT CORRESPOND.

(5) IRC 3127 allows an employer and any employees, where both are members of a recognized religious sect or division, to elect to be exempt from Social Security and/or Medicare tax. To claim the exemption, they must file Form 4029, Application for Exemption from Social Security and Medicare Taxes and Waiver of Benefits and describe the religious sect or division and show they adhere to its established tenets or teachings. Furthermore, though they will be exempt from Social Security and/or Medicare tax, the employer must withhold Federal income tax. Also, the employer must still withhold and pay the employee's share and pay the employer's share of Social Security and Medicare taxes for employees without an approved Form 4029. Form 4029 must be filed with and approved by the Social Security Administration. If the taxpayer has indicated, "Form 4029 Exempt", or "Form 4029 Applicable" in the blank area or above Line 5a, do not question the difference between the Total Compensation Line and taxable Social Security/Medicare wages.

(1) Line 5a(i), Taxable Social Security Wages for Qualified Sick Leave Wages amount in Column 1 is multiplied by the taxable percentage rate listed on the form line to equal the tax in Column 2.

(2) Ensure the amount is numeric and in dollars and cents.

(3) Process Line 5a(i) Column 1 as follows:

(1) Line 5a(ii), Qualified Family Leave Wages amount in Column 1 is multiplied by the taxable percentage rate listed on the form line to equal the tax in column 2.

(2) Ensure the amount is numeric and in dollars and cents.

(3) Perfect Line 5a(ii) Column 1 as follows:

(1) Line 5b, Taxable Social Security Tips amount in Column 1 is multiplied by the taxable percentage rate listed on the form line to equal the tax in Column 2.

(2) Ensure the amount is numeric and in dollars and cents.

(3) Perfect Line 5b Column 1 as follows:

(1) Line 5c, Taxable Medicare Wages & Tips amount in Column 1 is multiplied by the taxable percentage rate listed on the form line to equal the tax in Column 2.

(2) Ensure the amount is numeric and in dollars and cents.

(3) Perfect Line 5c Column 1 as follows:

(1) Line 5d, Taxable Wages & Tips Subject to Additional Tax Withholding amount in Column 1 is multiplied by the taxable percentage rate listed on the form line to equal the tax in Column 2.

(2) Ensure the amount is numeric and in dollars and cents.

(3) Perfect Line 5d Column 1 as follows:

(1) Line 5e, Total Social Security and Medicare Taxes amount is the sum of Column 2 amounts Lines 5a - 5d and is transcribed.

(2) Line 5e and 5d entry is valid for the following years and quarters:

• Line 5e Year 2013 & later - QTR 1, 2, 3, and 4

• Line 5d Year 2005 - 2012 - QTR 1, 2, 3, and 4

(3) 2013 & later - Perfect Line 5e as follows:

(4) 2005 - 2012) - Perfect Line 5d as follows:

(1) A Form 941 will show an amount due to a Section 3121(q) Notice and Demand - Tax Due on Unreported Tips received following a tips examination. These employers must pay the employer portion of Social Security and Medicare taxes on unreported tips shown on the Section 3121(q) Notice and Demand. The taxpayer is instructed to report the tax liability on their Form 941 for the quarter in which the IRC 3121(q) Notice and Demand is issued.

(2) Line 5f or 5e will be reported for the following lines, years, and quarters:

• Line 5f Year 2013 & later - QTR 1, 2, 3, and 4

• Line 5e Year 2011 and 2012 - QTR 1, 2, 3, and 4

(3) 2013 & later - Perfect Line 5f as follows:

(4) 2011 & 2012 - Perfect Line 5e as follows:

(1) Line 6a - 6c will be reported for Year 2010 QRT 2-4.

(2) Qualified employers who hired unemployed workers between February 3, 2010, and January 1, 2011, will qualify for a 6.2 percent payroll tax incentive. The incentive, in effect, exempts the employers from their share of Social Security taxes on wages paid to these workers from March 19, 2010, through December 31, 2010. The payroll tax exemption applied to Form 941, Form 941-PR, and Form 941-SS.

(3) Lines 6a-6c are all transcription lines. Accept the taxpayer's figures for Lines 6a through 6c.

(4) If the return has an entry for a tax year other than 2010 QRT 2-4 on Lines 6a through 6c, disallow the entry by placing an asterisk to the left of the amount. Then, make any needed corrections down the remainder of the return.

(1) Line 6e, Total Taxes Before Adjustments is valid for tax periods 201006 through 201112 is the sum of lines 3, 5d, and 5e. This is a T-Line for 201006 - 201112. Compute the total if blank, zero dash or none.

(2) The entry must be positive and entered in dollars and cents.

(3) If present as a negative amount, convert to a positive amount.

(1) For 2012 & later, Line 6 is a T-Line and is the total of the sum of Lines 3, 5e, and 5f amounts.

(2) Line 6 or 6e designated line for the following years and quarters:

(3) 2012 and later - Perfect Line 6 as follows:

(4) 2010 (QTR 2 - 4) and 2011 - Perfect Line 6e as follows:

(5) 2010 QRT 1 and 2009 and prior - Perfect Line 6 as follows:

(1) An entry on line 7/7a can be positive, negative, or minus on Form 941, Form 941-PR, or Form 941-SS.

(2) The entry on line 7/7a does not require a Form 941-X for substantiation or supporting statement. Therefore, accept all taxpayer entries on this line.

(3) If the taxpayer's entry is correct and in dollars only, the examiner must not re-enter the amount in dollars and cents.

(1) For 2010 - 2005, Line 8 was listed as Line 7b, "Current quarter’s sick pay".

(2) An entry on line 8/7b, represents the current quarter's adjustment to sick pay.

(3) Accept any Social Security and Medicare tax adjustment on Line 8/7b identified as "sick pay" or "disability payment". The employer will show their share of Social Security tax paid by a third-party. If the return is being filed by the third-party payer, the employer's share of Social Security tax on sick pay will be shown on Line 8/7b.

(4) If the taxpayer's entry is correct and in dollars only, the examiner must not re-enter the amount in dollars and cents.

(5) If the taxpayer entered the same amount on Lines 8,9, or 10 (2016 and prior), or Line 12 (2017 and later), verify the amount on Line 10 (Revision 2016 and prior), or Line 12 (2017 and later) by following the instructions on the form itself.

(1) An entry on Line 9/7c, represents the current quarter's adjustment for tips or group term-life insurance.

(2) Accept a Social Security tax adjustment on Line 9 identified as "tips" or "term life insurance". The employer will show their share of Social Security tax paid by a third-party. If the return is being filed by the third-party payer, the employer's share of Social Security tax on tips or group term-life insurance will be shown on Line 9/7c.

(3) If the taxpayer's entry is correct and in dollars only, the examiner must not re-enter the amount in dollars and cents.

(1) A taxpayer will show an adjustment to correct an error made in:

1. A prior quarter(s) in a different tax year(s), or

2. A preceding quarter of the same tax year (TY).

(2) Entries on Line 7d can be positive, negative or a minus (-) amount.

(3) Perfect Line 7d as follows:

(4) Process a decrease in Federal Income Tax Withholding to correct errors as follows:

(5) Process an Increase in Federal Income Tax Withholding - Accept any increases in Federal Income Tax Withholding whether or not a Form 941-X, supporting statement, or explanation is attached. If a Form 941-X is attached, verify that the correct entry is shown on Line 7d, (2005 through- 2008) of the return.

(1) Adjustments to Social Security and Medicare tax will be made on a Form 941 for any Tax Periods 2005 through 2008, provided the Tax Period being adjusted is not barred by Statute. See IRM 3.11.13.11.11.

(2) See IRM 3.11.13.16, 94X Adjusted Return Procedures, when there is:

• A prior year (PY) revision (2008 and prior) filed for a 2009 and later Tax Period showing an amount on Line 7e.

• A Form 941 with a Form 941-X or Form 941-X(PR) attached.

(3) Perfect Line 7e, as follows:

(4) Process a Decrease in Social Security and Medicare Tax as follows:

(5) Process an increase in Social Security and Medicare Tax - Accept any increases in Social Security and Medicare Tax Adjustment whether or not a Form 941-X, supporting statement, or explanation is attached. If a Form 941-X is attached, verify that the correct entry is shown on Line 7e of the return.

(1) An amount on Line(s) 7f, Special Additions to Federal Income tax, represents a correction of income tax due to a prior Compliance (Examination) review assessment.

(2) See IRM 3.11.13.16, 94X Adjusted Return Procedures, when:

• A prior year (PY) revision (2008 and prior) filed for a 2009 and later Tax Period showing an amount on Line 7f.

• A Form 941 with a Form 941-X or Form 941-X(PR) attached.

(3) Any amounts entered on Line 7f must be in dollars and cents.

(1) An amount on Line 7g, Special Additions to Social Security and Medicare Tax, represents a correction of Social Security and Medicare tax due to a prior Compliance (Examination) review assessment.

(2) See IRM 3.11.13.16, 94X Adjusted Return Procedures, when:

• A prior year (PY) revision (2008 and prior) filed for a 2009 and later Tax Period showing an amount on Line 7g.

• A Form 941 with a Form 941-X or Form 941-X(PR) attached.

(3) Any amounts entered on Line 7g must be in dollars and cents.

(1) Line 7d is the total of the entries on line 7a through 7c (2010 and 2009) represent adjustments (e.g., Fractions of cents, Sick Pay, Group Term Life Insurance or Tips) to the net tax of the Form 941 being filed.

(2) Line 7h is the total of the entries on lines 7d through 7g (2005 - 2008) for other adjustments (e.g., Federal Income Tax Withholding, Social Security and Medicare Tax, Special Additions to Federal Income Tax Withholding, and Special Additions for Social Security and Medicare) to the Form 941 tax.

(3) If an examiner enters an amount to one of the adjustment lines, the entry must be in dollars and cents. However, if a taxpayer's entry is in dollars only and is correct, the examiner must not re-enter the amount to dollars and cents.

(1) The Advanced Earned Income Credit (AEIC) was a tax credit for certain employees in the United States. Eligible employees could choose whether to claim the whole credit on their tax return (Form 1040) or receive part of the credit in advance through their pay during the year and claim the remainder of the credit on their tax return (Form 1040). The employer will or will not have to make a tax deposit during the quarter. Therefore, do not assume that AEIC is a misplaced entry if there is no deposit(s). This largely applies to small dollar returns. If the Total Taxes minus the AEIC equals the Net Taxes do not move the AEIC entry.

(2) AEIC distribution through the employer was repealed by the Education Jobs and Medicaid Assistance Act beginning in Tax Period 201103 and later.

(3) Process Line 9 (Revisions 2005 - 10-2010 only) entry as follows:

(1) For 2011 and later, Line 10, Total taxes after adjustment is the sum of Lines 6, 6e (2011 only), 7, 8, and 9 amounts.

(2) For 2005 - 2010, Line 8, Total taxes after adjustment is the sum of Lines 6 and 7h (2005 - 2008) or Lines 6 and 7d (2009 and 2010) amounts.

(3) Entries can be positive, negative, or minus and must appear in dollars and cents.

(4) Verify a negative amount on line 10/8 by following the directions on the form.

(5) 2011 and later - Process Line 10 as follows:

(6) 2005 - 2010 - Process Line 8 as follows:

1. Verify a negative amount on Line 8 by following the directions on the form.

2. Line 8 must be edited if it is blank or contains a misplaced entry.

   Example: Taxpayer has listed zero on Line 8, however Lines 3 and 5 have entries, asterisk the zero and enter correct amount.

   Exception: If entering Column(s) 1 or 2 for Line(s) 5a, 5b, or 5c, do not compute line 8.

3. If Lines 8 and 9 are blank and there is an entry on Line 10, enter the Line 10 amount on Line 8.

(1) Line 10, Total taxes after adjustment for advance EIC, must be the total of Line 8, Total taxes after adjustments, less Line 9, Advance earned income credit.

(2) Line 10 is not a T-line; however, it will be necessary to compute this line.

IF	THEN
Line 10 is blank (2005-2008 Revision)	Compute only if needed to verify or compute Line(s) 11, 12 or 13.
Line 10 is blank (2005-2008 Revision)	Compute if needed to determine if SIC must be edited to the return.
Line 10 contains an entry (2005-2008 Revision)	Accept the taxpayer's entry. Use the taxpayer's entry, if needed, to verify or compute Line 11, 12 or 13.
Line 10 is blank (2009 or 2010 Revision),	Compute only if needed to verify or compute Line(s) 11, 13, 14 or 15.
Line 10 is blank (2009 or 2010 Revision),	Compute if needed to determine if SIC must be edited to the return.
Line 10 contains an entry (2009 or 2010 Revision),	Accept the taxpayer's entry. Use the taxpayer's entry, if needed, to verify or compute Line 11, 13, 14, or 15.