Part 3. Submission Processing
Chapter 11. Returns and Documents Analysis
Section 16. Corporate Income Tax Returns
3.11.16 Corporate Income Tax Returns
Manual Transmittal
November 15, 2024
Purpose
(1) This transmits revised IRM 3.11.16, Returns and Documents Analysis - Corporate Income Tax Returns.
Material Changes
(1) IRM 3.11.16.1(5) - Changed "Paper Processing Branch" to "Return Processing Branch". (IPU 24U0151 issued 01-29-2024)
(2) IRM 3.11.16.2.2(2) - Changed "Paper Processing Branch" to "Return Processing Branch". (IPU 24U0151 issued 01-29-2024)
(3) IRM 3.11.16.2.3(1) - Changed the IRM reference for IRM 1.11.2, Internal Management Documents System, Internal Revenue Manual (IRM) Process, from IRM 1.11.2.2.4 to IRM 1.11.2.2.3. (IPU 24U0568 issued 04-25-2024)
(4) IRM 3.11.16.2.4(1) - Updated the TAS Standard Language for IRS IRMs approved by the TAS Communications Stakeholder Liaison and Online Services Team per Internal Management Documents (IMD) feedback.
(5) IRM 3.11.16.2.4(3) - Added "See IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines" per TAS IRM review and feedback.
(6) IRM 3.11.16.2.4(6) - Reworded and added "IRM 13.1.7.4, Exceptions to Taxpayer Advocate Service Criteria, for information on cases that TAS will no longer accept" per TAS IRM review and feedback.
(7) IRM 3.11.16.2.4.1(1) - Added "or Chiefs" per IRM review and feedback to TAS Service Level Agreements (SLAs).
(8) IRM 3.11.16.2.4.1(1) - Changed "Appeals" to "Independent Office of Appeals" per IRM review and feedback to TAS Service Level Agreements (SLAs).
(9) IRM 3.11.16.3.2 Title - Changed the Title to "Form 1120 Series Returns Worked in Ogden Only" per the request from the campus employees to clarify the information. (IPU 24U0362 issued 03-07-2024)
(10) IRM 3.11.16.3.3(1) - Added "Kansas City Submission Processing Center" and moved the information into a list. (IPU 24U0362 issued 03-07-2024)
(11) IRM 3.11.16.3.7(3) 6th bullet - Updated Statute exception process for BMF per MOU signed by Submission Processing and Accounts Management. (IPU 24U0250 issued 02-12-2024)
(12) IRM 3.11.16.3.11(1) - Reworded sentence regarding Prompt Assessments per Chief Counsel IRM review feedback.
(13) IRM 3.11.16.6.4(2) - Added instruction and a Note for TC 014 input. (IPU 24U0029 issued 01-03-2024)
(14) IRM 3.11.16.6.5(2) - Added a Note about the input of TC 014 to capture both the location and mailing address. (IPU 24U0029 issued 01-03-2024)
(15) IRM 3.11.16.6.5(3) - Added three Notes about the input of TC 014 to capture both the location and mailing address. (IPU 24U0029 issued 01-03-2024)
(16) IRM 3.11.16.7.1(10) - Updated wording in paragraph for Tax Period Ending instruction per Chief Counsel IRM review feedback.
(17) IRM 3.11.16.7.4(2) 1st and 2nd "If" boxes - Added parenthetical after each reference to Rev. Proc. 2006-45 of "clarified and modified by Rev. Proc. 2007-64" for Short Period - Editing Proof of Entitlement instructions per Chief Counsel IRM review feedback.
(18) IRM 3.11.16.7.6(1)a - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Short Period Returns - Editing a Disapproved Application (Form 1128) per IRM feedback.
(19) IRM 3.11.16.9.1.5(1) - Removed reference to edit Computer Condition Code (CCC) "E" on "Form 1120 series" returns. Removed per RICS UWR 980389 which states only Form 1120 is included in RICS BMF IDT pre-refund selection programming. (IPU 24U0250 issued 02-12-2024)
(20) IRM 3.11.16.9.1.5(3) - Added an instruction to edit Computer Condition Code (CCC) E on Form 1120 only. (IPU 24U0311 issued 02-29-2024)
(21) IRM 3.11.16.9.1.6(1) - Added an example for a dissolved corporation that attaches a "Certificate of Dissolution". (IPU 24U0444 issued 03-25-2024)
(22) IRM 3.11.16.9.1.11(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to CCC "K" Form 8697 per IRM review feedback.
(23) IRM 3.11.16.9.1.28(1) - Corrected the Title for Form 8938, Statement of Specified Foreign Financial Assets, in the Computer Condition Code (CCC) "2" instructions. (IPU 24U0464 issued 04-01-2024)
(24) IRM 3.11.16.9.3(8)g Note - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to ABLM Code and Schedule M-3 Checkbox per IRM review feedback.
(25) IRM 3.11.16.9.4(2) - Updated the Initial Return Code Table with a new 24-Month Cutoff Date.
(26) IRM 3.11.16.10.1(11) - Added instruction for Audit Code "W" for Form 1120 per Unified Work Request (UWR) UWR 983232 for processing year 2025.
(27) IRM 3.11.16.10.2(1) - Added an Exception clarifying the editing location for the Penalty and Interest Code. (IPU 24U0311 issued 02-29-2024)
(28) IRM 3.11.16.10.4(1) - Corrected the reference of "installment method" to "installment plan" for Form 1120 Installment Sale Indicator (Form 6252) per feedback from LB&I/Enterprise feedback.
(29) IRM 3.11.16.11.1(1) - Added Form 4255 to the Sequence - Form 1120 instructions. Form 4255 added per UWR 983232 for PY 2025.
(30) IRM 3.11.16.11.4.7(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Line 8 - Capital Gain per IRM review feedback.
(31) IRM 3.11.16.11.4.8(2) 1st "Then" box - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Line 9 - Net Gain or Loss from Form 4797 per IRM review feedback.
(32) IRM 3.11.16.11.4.8(2) - Corrected Figure 3.11.16-15, Line 9 - Net Gain or Loss from Form 4797. (IPU 24U0444 issued 03-25-2024)
(33) IRM 3.11.16.11.6.4(2) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Backup Withholding per IRM review feedback.
(34) IRM 3.11.16.11.6.5(2) 1st "Then" box step c - Added a Note if FIRPTA/8288-A credit is disallowed to FIRPTA, Form 1042-S, Form 8805 and Form 8288-A Credits per Chief Counsel IRM review feedback.
(35) IRM 3.11.16.11.6.6(2)b - Reworded paragraph for clarity per Chief Counsel IRM review feedback.
(36) IRM 3.11.16.11.7(1) 6th bullet - Corrected the wording in the bullet regarding efile GRAPHIC prints per Course Development feedback.
(37) IRM 3.11.16.11.7(7) - Extended digital signature exception expiration date per IRA 2023-199. (IPU 23U1101 dated 11-20-2023)
(38) IRM 3.11.16.11.12 - Added a new subsection for Schedule J, Line 1b, Tax from Form 1120-L, per UWR 983232 for PY 2025. Renumbered remaining subsections.
(39) IRM 3.11.16.11.13 - Added a new subsection for Schedule J, Line 1c, Section 1291 Tax from Form 8621, per UWR 983232 for PY 2025.
(40) IRM 3.11.16.11.14 - Added a new subsection for Schedule J, Line 1d, Tax Adjustment from Form 8978, per UWR 983232 for PY 2025.
(41) IRM 3.11.16.11.15 - Added a new subsection for Schedule J, Line 1e, Additional Tax Under Section 197(f), per UWR 983232 for PY 2025
(42) IRM 3.11.16.11.17 - Added a new subsection for Schedule J, Line 1g, Chapter 1 Tax Recapture from Form 4255, per UWR 983232 for PY 2025. Renumbered remaining subsections.
(43) IRM 3.11.16.11.18 - Added a new subsection for Schedule J, Line 1z, Other Chapter 1 Tax, per UWR 983232 for PY 2025.
(44) IRM 3.11.16.11.20(1)a - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule J, Lines 5a and 5b - Credits per IRM review feedback.
(45) IRM 3.11.16.11.21(2) - Updated the Form 3800 prior year line transcription numbers for Schedule J, Line 5c - General Business Credit (202301 and later) per UWR 983232 for PY 2025.
(46) IRM 3.11.16.11.21(4) - Updated the Form 3800 Part I and Part II line transcription for Schedule J, Line 5c - General Business Credit (202301 and later) per UWR 983232 for PY 2025.
(47) IRM 3.11.16.11.21(5) - Updated the Form 3800 Part III column transcription for Schedule J, Line 5c - General Business Credit (202301 and later) per UWR 983232 for PY 2025.
(48) IRM 3.11.16.11.21(5) - Corrected the Title of Form 8936, Clean Vehicle Credits, per Chief Counsel IRM review feedback.
(49) IRM 3.11.16.11.21(6) - Added a reference to see Figure 3.11.16-21 for Schedule J, Line 5c - General Business Credit (202301 and later) per Course Development feedback.
(50) IRM 3.11.16.11.21(7) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule J, Line 5c - General Business Credit (202301 and later) per IRM review feedback.
(51) IRM 3.11.16.11.21(9) - Updated the Correction Procedures for Schedule J, Line 5c - General Business Credit (202301 and later) by removing two Exceptions and adding three new Exceptions per UWR 983232 for PY 2025.
(52) IRM 3.11.16.11.21.1(2) (4) (5) - Rewrote instruction for Form 8844, Empowerment Zone Employment Credit editing per IRM review feedback. Instruction added due to new Form 3800, General Business Credit, revision for 2024.
(53) IRM 3.11.16.11.21.2(2) - Rewrote Form 8941, Credit for Small Employer Health Insurance Premiums editing instructions per IRM review feedback. Instruction added due to new Form 3800, General Business Credit, revision for 2024.
(54) IRM 3.11.16.11.21.3(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule J, Line 5d - Form 8827, Credit for Prior Year Minimum Tax - Corporations per IRM review feedback.
(55) IRM 3.11.16.11.23(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule J, Line 8 - Personal Holding Company Tax per IRM review feedback.
(56) IRM 3.11.16.11.24.1 Title - Corrected the title of the subsection for Schedule J, Line 9a - Certain Credit Recapture, Excessive Payments, and Penalties (Form 4255). (IPU 24U0029 issued 01-03-2024)
(57) IRM 3.11.16.11.24.6 Title and (1) - Corrected the Title for the subsection and added a Note regarding the form revisions for this line. (IPU 24U0250 issued 02-12-2024)
(58) IRM 3.11.16.11.24.7 - Added a new subsection for Form 1120, Schedule J, Line 9g, Interest/Tax Due Under Section 453(l), for 2023 form revision. (IPU 24U0250 issued 02-12-2024)
(59) IRM 3.11.16.11.24.9 - Added a new subsection for Form 1120, Schedule J, Line 9z, Other, for 2023 form revision. (IPU 24U0250 issued 02-12-2024)
(60) IRM 3.11.16.11.25(1)a - Corrected the line reference for Schedule J, Line 1, Total Tax, per SERP Feedback #16936. (IPU 24U0250 issued 02-12-2024)
(61) IRM 3.11.16.11.26 - Added a new subsection for Schedule J, Line 11a, Total tax Before Deferred Taxes, per UWR 983232 for PY 2025.
(62) IRM 3.11.16.11.27 - Added a new subsection for Schedule J, Line 11b, Deferred Tax on the Corporation's Share of Undistributed Earnings of a Qualified Electing Fund, per UWR 983232 for PY 2025.
(63) IRM 3.11.16.11.28 - Added a new subsection for Schedule J, Line 11c, Deferred LIFO Recapture Tax (Section 1363(d)), per UWR 983232 for PY 2025.
(64) IRM 3.11.16.11.29 - Added a new subsection for Schedule J, Line 12, Total Tax, per UWR 983232 for PY 2025.
(65) IRM 3.11.16.11.31.8(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule J, (Part II for 2023) (Part III for 2022-2018) Line 18 - Withholding per IRM review feedback.
(66) IRM 3.11.16.11.31.9(1) - Added a new instruction to edit Line 14 when Line 19, Total Payments, is the only entry on Form 1120, Schedule J, Lines 13 - 19. Added per UWR 983232 for PY 2023.
(67) IRM 3.11.16.11.31.11(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule J, (Part II for 2023) (Part III for 2022-2018) Line 20b - Form 4136 per IRM review feedback.
(68) IRM 3.11.16.11.31.12(1) - Added a new paragraph for Form 1120, Schedule J, Line 20c, Credit for Tax Withheld Under Chapter 3 or 4 from Form 1042-S, Form 8805, or Form 8288, per UWR 983232 for PY 2025. Renumbered remaining paragraphs accordingly.
(69) IRM 3.11.16.11.31.13 Title - Reworded the Title for Schedule J, Part III, Line 20d per Chief Counsel IRM review feedback.
(70) IRM 3.11.16.11.31.14 - Added Schedule J, Line 20i reference for tax year 2022 - 2018 per SERP Feedback #21079. (IPU 24U0818 issued 07-02-2024)
(71) IRM 3.11.16.11.31.14 - Added a new subsection and instructions for credits reported on Schedule J, Line 20z. Renumbered remaining subsections. (IPU 24U0710 issued 05-31-2024)
(72) IRM 3.11.16.11.31.17(1) - Added a new instruction to edit Line 14 when Line 23, Total Payments and Credits, is the only entry on Form 1120, Schedule J, Lines 13 - 23. Added per UWR 983232 for PY 2023.
(73) IRM 3.11.16.11.34(1) 1st and 3rd "Then" box step lists- Revised instruction for Form 1120 Schedule K, Question 3 per Course Development feedback.
(74) IRM 3.11.16.11.43(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Form 1120 Correction Procedures for Schedule K, Lines 29a, 29b and 29c (Corporate AMT) per IRM review feedback.
(75) IRM 3.11.16.11.43(1) - Added a Note regarding correspondence when Schedule K, Question 29c is marked “No” per SERP Feedback #18600 and #18603. (IPU 24U0464 issued 04-01-2024)
(76) IRM 3.11.16.11.46.1(1) 7th "Then" box - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence to Form 1120 Correction Procedures for Blank or Missing Schedule L per IRM review feedback.
(77) IRM 3.11.16.11.46.1(2) - Corrected the IRM reference to Editing a Balance Sheet with Significant entries and added a reference to see Figure 3.11.16-22 for a Blank or Missing Schedule L per Course Development feedback.
(78) IRM 3.11.16.11.46.1(2) - Corrected the caption for Figure 3.11.16-22 to "Editing Schedule L, Balance Sheet". (IPU 24U0311 issued 02-29-2024)
(79) IRM 3.11.16.11.47.10(1) - Updated instruction for Schedule N, Line 8 - Form 8938, Statement of Specified Foreign Financial Assets for processing year 2025.
(80) IRM 3.11.16.11.47.10(1) - Corrected the Title for Form 8938, Statement of Specified Foreign Financial Assets, in the Schedule N, Line 8 instructions. (IPU 24U0464 issued 04-01-2024)
(81) IRM 3.11.16.11.47.10(2) a & b - Updated instruction for Schedule N, Line 8 - Form 8938, Statement of Specified Foreign Financial Assets for processing year 2025.
(82) IRM 3.11.16.12(1) second bullet - Corrected the reference of IRM 3.11.16.12.2, to "Part I, Line 2 - Election to Apply the Extraterritorial Income Exclusion Provisions to Certain Transactions Involving a FSC" for Form 8873 - Extraterritorial Income Exclusion, per Chief Counsel IRM review feedback.
(83) IRM 3.11.16.12.2 Title - Corrected the Title to "Part I, Line 2 - Election to Apply the Extraterritorial Income Exclusion Provisions to Certain Transactions Involving a FSC" per Chief Counsel IRM review feedback.
(84) IRM 3.11.16.13(3) - Added (2023 revision and later) to the valid criteria.
(85) IRM 3.11.16.19(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Form 4136 - Credit for Federal Tax Paid on Fuels per IRM review feedback.
(86) IRM 3.11.16.19(1) - Corrected the line references for Form 4136, Credit for Federal Tax Paid on Fuels. (IPU 24U0311 issued 02-29-2024 )
(87) IRM 3.11.16.22(2) 2nd and 3rd Then boxes - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Form 8941 - Credit for Small Employer Health Insurance Premiums per IRM review feedback.
(88) IRM 3.11.16.22(3) 3rd and 4th Then boxes - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Form 8941 - Credit for Small Employer Health Insurance Premiums per IRM review feedback.
(89) IRM 3.11.16.24(3) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Form 3800 - General Business Credit per IRM review feedback.
(90) IRM 3.11.16.24(3) - Revised instruction and added three Exceptions for Form 1120 Form 3800 - General Business Credit per UWR 983232 for PY 2025.
(91) IRM 3.11.16.25 - Moved Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, here to follow Form 3800, General Business Credit, and the proper sequence order. Renumbered remaining subsections.
(92) IRM 3.11.16.26 - Moved Form 6252, Installment Sale Income, here to follow Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, and the proper sequence order. Renumbered remaining subsections.
(93) IRM 3.11.16.27(3) - Added added a reference to see Figure 3.11.16-26 Form 8936, Schedule A Indicator. per Course Development feedback.
(94) IRM 3.11.16.27(3) - Updated the editing location of the indicator for Form 8936, Schedule A, Clean Vehicle Credit Amount, when more than two Form 8936, Schedule A’s are attached.
(95) IRM 3.11.16.27(4) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Form 8936, Schedule A, Clean Vehicle Credit Amount per IRM review feedback.
(96) IRM 3.11.16.27(4) - Added a caption for Figure 3.11.16-26, Example of editing Form 8936, Schedule A Indicator. (IPU 24U0311 issued 02-29-2024)
(97) IRM 3.11.16.28 - Added a new subsection to Form 1120 for Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties.
(98) IRM 3.11.16.29(3) 1st "Then" box b. - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Consolidated Returns per IRM review feedback.
(99) IRM 3.11.16.29.2(3) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Consolidated Returns - Required Information per IRM review feedback.
(100) IRM 3.11.16.29.3(4) c - Corrected the missing NAICS Code instruction to use code "999999" per SERP Feedback #16930. (IPU 24U0250 issued 02-12-2024)
(101) IRM 3.11.16.29.3(16) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Form 851 - Affiliations Schedule per IRM review feedback.
(102) IRM 3.11.16.33.2(1) - Added Form 4255 to the Sequence - Form 1120-C instructions. Form 4255 added per UWR 983232 for PY 2025.
(103) IRM 3.11.16.33.14(3) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Income - Lines 1a through 10 per IRM review feedback.
(104) IRM 3.11.16.33.14(4) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Income - Lines 1a through 10 per IRM review feedback.
(105) IRM 3.11.16.33.16 - Updated instructions, line numbers, and placed section in line order of Form 1120-C per UWR 983232 for PY 2025.
(106) IRM 3.11.16.33.16(13) - Replaced the reference of "IRC 1383 credit" with "IRC 1383 adjustment" per Chief Counsel IRM feedback review.
(107) IRM 3.11.16.33.16(17) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Tax and Payments - Lines 27 through 35 (2024 revision) per IRM review feedback.
(108) IRM 3.11.16.33.16(18) - Reworded paragraph for clarity per Chief Counsel IRM review feedback.
(109) IRM 3.11.16.33.21(2) - Added new paragraph for Form 1120-C, Schedule J Line 1b, Section 1291 Tax from Form 8621, per UWR 983232 for PY 2025. Renumbered remaining paragraphs.
(110) IRM 3.11.16.33.21(3) - Added new paragraph for Form 1120-C, Schedule J Line 1c, Tax Adjustment from Form 8978, per UWR 983232 for PY 2025.
(111) IRM 3.11.16.33.21(5) - Added new paragraph for Form 1120-C, Schedule J Line 1e, Chapter 1 Tax Recapture from Form 4255, per UWR 983232 for PY 2025.
(112) IRM 3.11.16.33.21(6) - Added new paragraph for Form 1120-C, Schedule J Line 5z, Other Chapter 1 Tax, per UWR 983232 for PY 2025.
(113) IRM 3.11.16.33.21(12) - Added new paragraph for Form 1120-C, Schedule J Line 5e, Bond Credits from Form 8912, per UWR 983232 for PY 2025.
(114) IRM 3.11.16.33.21(13) - Added new paragraph for Form 1120-C, Schedule J Line 5z, Other, per UWR 983232 for PY 2025.
(115) IRM 3.11.16.33.21(18) - Added new paragraph for Form 1120-C, Schedule J Line 10a, Total Tax Before Deferred Taxes, per UWR 983232 for PY 2025.
(116) IRM 3.11.16.33.21(19) - Added new paragraph for Form 1120-C, Schedule J Line 10b, Deferred Tax on the Cooperative’s Share of Undistributed Earnings of a Qualified Electing Fund, per UWR 983232 for PY 2025.
(117) IRM 3.11.16.33.21(20) - Added new paragraph for Form 1120-C, Schedule J Line 10z, Other Deferred Taxes, per UWR 983232 for PY 2025.
(118) IRM 3.11.16.33.21(21) - Added new paragraph for Form 1120-C, Schedule J Line 11, Total Tax, per UWR 983232 for PY 2025.
(119) IRM 3.11.16.33.23(1) 1st "Then" box c and d - Revised instruction for Form 1120-C Schedule K, Question 5 - Is the Cooperative a Subsidiary in an Affiliated Group/Controlled Group per Course Development feedback.
(120) IRM 3.11.16.33.25 - Added a new subsection and editing instructions for Schedule K, Line 19 - Control Group Code. Renumbered remaining subsections accordingly. (IPU 24U0862 issued 07-23-2024)
(121) IRM 3.11.16.33.35(3) - Revised instruction and added three Exceptions for Form 1120-C Form 3800 - General Business Credit per UWR 983232 for PY 2025.
(122) IRM 3.11.16.33.36(4) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Form 8936, Schedule A, Clean Vehicle Credit Amount per IRM review feedback.
(123) IRM 3.11.16.33.37 - Added a new subsection to Form 1120-C for Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties, for Form 1120-C. Form added per UWR 983232 for PY 2025.
(124) IRM 3.11.16.34.2(1) - Added Form 4255 to the Sequence - Form 1120-F instructions. Form 4255 added per UWR 983232 for PY 2025.
(125) IRM 3.11.16.34.14.2(1) - Added Form 8275-R to the Audit Code 1 list per Course Development feedback.
(126) IRM 3.11.16.34.14.2(6) - Added instruction for Audit Code W for Form 1120-F per UWR 983232 for processing year 2025
(127) IRM 3.11.16.34.15(5) - Added new paragraph for Form 1120-F, Line 5a, Preceding Year’s Overpayment Credited to the Current Year, per UWR 983232 for PY 2025. Renumbered remaining paragraphs accordingly.
(128) IRM 3.11.16.34.15(6) - Added new paragraph for Form 1120-F, Line 5b, Current Year’s Estimated Tax Payments, per UWR 983232 for PY 2025.
(129) IRM 3.11.16.34.15(8) - Added new paragraph for Form 1120-F, Line 5d, Reserved For Future Use, per UWR 983232 for PY 2025.
(130) IRM 3.11.16.34.15(11)a - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Lines 1 through 5h - Computation of Tax Due or Overpayment per IRM review feedback.
(131) IRM 3.11.16.34.16(3) 1st, 2nd, 4th, and 6th "Then" boxes Step 1 - Added a Note if FIRPTA/8288-A credit is disallowed to FIRPTA, Form 1042-S, Form 8805 and Form 8288-A Credits per Chief Counsel IRM review feedback..
(132) IRM 3.11.16.34.16(5) - Added a Note regarding misplaced entries reported on Form 1120-F, Line 5i - U.S. Income Tax Paid or Withheld at Source. (IPU 24U0311 issued 02-29-2024)
(133) IRM 3.11.16.34.16(6) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Line 5i - U.S. Income Tax Paid or Withheld at Source per IRM review feedback.
(134) IRM 3.11.16.34.16(6) - Added a Note regarding misplaced entries reported on Form 1120-F, Line 5i - U.S. Income Tax Paid or Withheld at Source. (IPU 24U0311 issued 02-29-2024)
(135) IRM 3.11.16.34.18(1) - Reworded paragraph for clarity per Chief Counsel IRM review feedback.
(136) IRM 3.11.16.34.22 - Corrected Title to Page 2, Question T - Name of Parent Corporation.
(137) IRM 3.11.16.34.22(1) 1st "Then" box c and d - Revised instruction for Form 1120-F Page 2, Question T - Name of Parent Corporation per Course Development feedback.
(138) IRM 3.11.16.34.25(1) - Added a Note regarding correspondence for Form 4626 Question JJ(1), JJ(2), and JJ(3) (Corporate AMT) per Course Development feedback.
(139) IRM 3.11.16.34.26(4) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Section II - Income and Deductions per IRM review and feedback.
(140) IRM 3.11.16.34.26(5) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Section II - Income and Deductions per IRM review and feedback.
(141) IRM 3.11.16.34.27(1) - Added new paragraph for Form 1120-F, Line 2a, Base Erosion Minimum Tax Amount. Renumbered remaining paragraphs.
(142) IRM 3.11.16.34.27(2) - Added new paragraph for Form 1120-F, Line 2b, Chapter 1 Tax from Form 4255, per UWR 983232 for PY 2025.
(143) IRM 3.11.16.34.27(3) - Added new paragraph for Form 1120-F, Line 2c, Other Chapter 1 Tax, per UWR 983232 for PY 2025.
(144) IRM 3.11.16.34.28(2) - Added instruction for Schedule W, Overpayment Resulting from Tax Deducted and Withheld Under Chapter 3.
(145) IRM 3.11.16.34.28(3) - Corrected instruction for Schedule W, Overpayment Resulting from Tax Deducted and Withheld Under Chapter 3.
(146) IRM 3.11.16.34.28(5)b - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule W - Overpayment Resulting from Tax Deducted and Withheld Under Chapter 3 per IRM review feedback.
(147) IRM 3.11.16.34.29(3) - Added (2023 revision and later) to the valid criteria.
(148) IRM 3.11.16.34.37(3) - Revised instruction and added three Exceptions for Form 1120-F Form 3800 - General Business Credit per UWR 983232 for PY 2025.
(149) IRM 3.11.16.34.39 - Added a new subsection to Form 1120-F for Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties, for Form 1120-F. Form added per UWR 983232 for PY 2025.
(150) IRM 3.11.16.35.13(1) 1st "Then" box c and d - Revised instruction for Form 1120-FSC Parent-Subsidiary Controlled Group - Question 2, Page 1 per Course Development feedback.
(151) IRM 3.11.16.35.18(5)a - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Tax Data Perfection, Page 1 - Tax and Payments per IRM review feedback.
(152) IRM 3.11.16.35.21(2) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule J, Page 5, Tax Preference Code and Foreign Tax Credit per IRM review feedback.
(153) IRM 3.11.16.36.1(1) - Added Form 4255 to the Sequence - Form 1120-H instructions. Form 4255 added per UWR 983232 for PY 2025.
(154) IRM 3.11.16.36.10(6) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Gross Income Items - Lines 1 through 8 per IRM review feedback.
(155) IRM 3.11.16.36.10(7) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Gross Income Items - Lines 1 through 8 per IRM review feedback.
(156) IRM 3.11.16.36.12(2)c - Added new instruction for Form 1120-H Chapter 1 Recapture Credits from Form 4255. Added per UWR 983232 for PY 2025.
(157) IRM 3.11.16.36.12(8) 2nd "Then" box - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Tax and Payments - Lines 21 through 26 per IRM review feedback.
(158) IRM 3.11.16.36.12(9)a. - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Tax and Payments - Lines 21 through 26 per IRM review feedback.
(159) IRM 3.11.16.36.12(11) 1st "Then" box - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Tax and Payments - Lines 21 through 26 per IRM review feedback.
(160) IRM 3.11.16.36.17(1) - Updated the fields transcribed for Form 1120-H Form 3800, General Business Credit.
(161) IRM 3.11.16.36.17(2) - Added a new paragraph for Form 1120-H sequencing Form 3800, General Business Credit. Renumbered remaining paragraphs.
(162) IRM 3.11.16.36.17(4) - Added a new paragraph for Form 1120-H to correspond for Form 3800, General Business Credit if missing and required.
(163) IRM 3.11.16.36.18 - Added a new subsection to Form 1120-H for Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties. Added per UWR 983232 for PY 2025.
(164) IRM 3.11.16.37(3) - Reworded instruction in paragraph for Return Processing - Form 1120-L (OSPC only) per Chief Counsel IRM review feedback.
(165) IRM 3.11.16.37.1(1) - Added Form 4255 to the Sequence - Form 1120-L instructions. Form 4255 added per UWR 983232 for PY 2025.
(166) IRM 3.11.16.37.1(1) - Corrected the sequence order of Form 1120-L. (IPU 24U0029 issued 01-03-2024)
(167) IRM 3.11.16.37.12(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Income Section per IRM review feedback.
(168) IRM 3.11.16.37.14(3) - Added a new paragraph for Form 1120-L, Line 27a, Preceding Year’s Overpayment Credited to the Current Year, per UWR 983232 for PY 2025.
(169) IRM 3.11.16.37.14(4) - Added a new paragraph for Form 1120-L, Line 27b, Current Year’s Estimated Tax Payments, per UWR 983232 for PY 2025.
(170) IRM 3.11.16.37.14(9)a - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Tax and Payments per IRM review feedback.
(171) IRM 3.11.16.37.14(12) - Added a new paragraph for Form 1120-L, Line 27z, Other Credits and Payments, per UWR 983232 for PY 2025.
(172) IRM 3.11.16.37.14(13) - Reworded paragraph for clarity per Chief Counsel IRM review feedback.
(173) IRM 3.11.16.37.16(2) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule B per IRM review feedback.
(174) IRM 3.11.16.37.18 - Added a new subsection for Form 1120-L, Lines 1a - 2, Income Taxes, per UWR 983232 for PY 2025. Renumbered remaining subsections accordingly.
(175) IRM 3.11.16.37.19(2) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule K, Line 3 - Corporate Alternative Minimum Tax (CAMT) (202301 and later) per IRM review feedback.
(176) IRM 3.11.16.37.19.1(2) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule K, Line 3 - Tax Preference Code (201811 and prior) per IRM review feedback.
(177) IRM 3.11.16.37.20(1) 1st "Then" box - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule K, Lines 5a through 9 per IRM review feedback.
(178) IRM 3.11.16.37.20(2) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule K, Lines 5a through 9 per IRM review feedback.
(179) IRM 3.11.16.37.20(5)- Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule K, Lines 5a through 9 per IRM review feedback.
(180) IRM 3.11.16.37.20(6) - Added a new paragraph for Form 1120-L, Schedule K, Line 5f, Adjustment from Form 8978, per UWR 983232 for PY 2025. Renumbered remaining paragraphs accordingly.
(181) IRM 3.11.16.37.20(7) - Added a new paragraph for Form 1120-L, Schedule K, Line 8a, Foreign Corporations - Tax on Income Not Effectively Connected with a U.S. Business, per UWR 983232 for PY 2025.
(182) IRM 3.11.16.37.20(9) 1st "Then" box - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule K, Lines 5a through 9 per IRM review feedback.
(183) IRM 3.11.16.37.20(10) - Added a new paragraph for Form 1120-L, Schedule K, Line 8z, Other Taxes, per UWR 983232 for PY 2025.
(184) IRM 3.11.16.37.20(11) - Moved old (8) for Form 1120-L, Schedule K, Lines 8a and 8b to the correct paragraph order.
(185) IRM 3.11.16.37.20(12) - Added a new paragraph for Form 1120-L, Schedule K, Lines 10a through 10c per UWR 983232 for PY 2025.
(186) IRM 3.11.16.37.22(1) 1st "Then" box c and d - Revised instruction for Form 1120-PC Schedule M, Question 6, 8 and 8c per Course Development feedback.
(187) IRM 3.11.16.37.24(3) - Added (2023 revision and later) to the valid criteria.
(188) IRM 3.11.16.37.31(3) - Revised instruction and added three Exceptions for Form 1120-L Form 3800 - General Business Credit per UWR 983232 for PY 2025.
(189) IRM 3.11.16.37.32 - Added a new subsection to Form 1120-L for Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties. Form added per UWR 983232 for PY 2025.
(190) IRM 3.11.16.37.33(4) 1st "Then" box - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Annual Statement - Form 1120-L per IRM review feedback.
(191) IRM 3.11.16.37.33(5) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Annual Statement - Form 1120-L per IRM review feedback.
(192) IRM 3.11.16.38.11(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Tax Data Perfection - Page 1 per IRM review feedback.
(193) IRM 3.11.16.38.11(8) - Reworded paragraph for clarity per Chief Counsel IRM review feedback.
(194) IRM 3.11.16.39.1(1) - Added Form 4255 to the Sequence - Form 1120-PC instructions. Form 4255 added per UWR 983232 for PY 2025.
(195) IRM 3.11.16.39.1(1) - Corrected the sequence order of Form 1120-PC. (IPU 24U0029 issued 01-03-2024)
(196) IRM 3.11.16.39.14 - Added a new subsection for Form 1120-PC, Lines 3a - 4, Taxes, per UWR 983232 for PY 2025. Renumbered remaining subsections accordingly.
(197) IRM 3.11.16.39.15(2) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Line 6 - Corporate Alternative Minimum Tax (CAMT) (202301 and later) per IRM review feedback.
(198) IRM 3.11.16.39.17(1)- Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Lines 8a through 13z per IRM review feedback.
(199) IRM 3.11.16.39.17(2)- Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Lines 8a through 13z per IRM review feedback.
(200) IRM 3.11.16.39.17(5)- Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Lines 8a through 13z per IRM review feedback.
(201) IRM 3.11.16.39.17(7) - Added a new paragraph for Form 1120-PC, Line 13z, Other, to the instructions for Lines 13a through 13z per UWR 983232 for PY 2025.
(202) IRM 3.11.16.39.17(7) 1st and 2nd "Then "boxes - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Lines 8a through 13z per IRM review feedback.
(203) IRM 3.11.16.39.18(2) - Added a new paragraph for Form 1120-PC, Line 16a, Preceding Year’s Overpayment Credited to the Current Year, per UWR 983232 for PY 2025. Renumbered remaining paragraphs accordingly.
(204) IRM 3.11.16.39.18(3) - Added a new paragraph for Form 1120-PC, Line 16b, Current Year’s Estimated Tax Payments, per UWR 983232 for PY 2025.
(205) IRM 3.11.16.39.18(9) - Added a new row to the "If/And/Then" chart for Section 1341 Credits reported on Form 1120-PC, Line 15z per SERP Feedback #21103. (IPU 24U0818 issued 07-02-2024)
(206) IRM 3.11.16.39.18(10) - Reworded paragraph for clarity per Chief Counsel IRM review feedback.
(207) IRM 3.11.16.39.20(2) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule A, Page 2 per IRM review feedback.
(208) IRM 3.11.16.39.20(3) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule A, Page 2 per IRM review feedback.
(209) IRM 3.11.16.39.23(1) 1st "Then" box c and d - Revised instruction for Form 1120-PC Schedule I, Page 7, Question 4 - Name and EIN of Common Parent per Course Development feedback.
(210) IRM 3.11.16.39.27(4) 1st "Then" box - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Annual Statement - Form 1120-PC per IRM review feedback.
(211) IRM 3.11.16.39.27(5) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Annual Statement - Form 1120-PC per IRM review feedback.
(212) IRM 3.11.16.39.28(3) - Added (2023 revision and later) to the valid criteria.
(213) IRM 3.11.16.39.35(3) - Revised instruction and added three Exceptions for Form 1120-PC Form 3800 - General Business Credit per UWR 983232 for PY 2025.
(214) IRM 3.11.16.39.36 - Added a new subsection to Form 1120-PC for Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties. Form added per UWR 983232 for PY 2025.
(215) IRM 3.11.16.40.1(1) - Added Form 4255 to the Sequence - Form 1120-REIT instructions. Form 4255 added per UWR 983232 for PY 2025.
(216) IRM 3.11.16.40.9(1)b - Updated the editing location of the Form 1120-REIT ABLM Code per TF&P form revision for PY 2025.
(217) IRM 3.11.16.40.11.2(2) - Added Audit Code W for Form 1120-REIT per UWR 983232 for processing year 2025.
(218) IRM 3.11.16.40.13(6) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Page 1 - Gross Income Items, Lines 1 through 8 per IRM review feedback.
(219) IRM 3.11.16.40.15(2) - Added a new paragraph for Form 1120-REIT, Line 25a, Preceding Year’s Overpayment Credited to the Current Year, per UWR 983232 for PY 2025. Renumbered remaining paragraphs accordingly.
(220) IRM 3.11.16.40.15(3) - Added a new paragraph for Form 1120-REIT, Line 25b, Current Year’s Estimated Tax Payments, per UWR 983232 for PY 2025.
(221) IRM 3.11.16.40.15(6) 1st Then box - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Tax Computation - Lines 24 through 28 per IRM review feedback.
(222) IRM 3.11.16.40.15(8) 1st and 3rd "Then" boxes - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Tax Computation - Lines 24 through 28 per IRM review feedback.
(223) IRM 3.11.16.40.15(9)a - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Tax Computation - Lines 24 through 28 per IRM review feedback.
(224) IRM 3.11.16.40.15(11)a - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Tax Computation - Lines 24 through 28 per IRM review feedback.
(225) IRM 3.11.16.40.15(12) - Added a new paragraph for Form 1120-REIT, Line 25z, Other Payments and Credits, per UWR 983232 for PY 2025.
(226) IRM 3.11.16.40.15(13) - Reworded paragraph for clarity per Chief Counsel IRM review feedback.
(227) IRM 3.11.16.40.15(14)a - Added a new paragraph for Form 1120-REIT Lines 28 and 28 with a Tax Period of 202401 and later per UWR 983232 for PY 2025. Renumbered remaining alpha list accordingly.
(228) IRM 3.11.16.40.15(14)b - Corrected the Form 1120-REIT (202301 and later revisions) Line 25i reference for Total Payments and Credits. (IPU 24U0311 issued 02-29-2024)
(229) IRM 3.11.16.40.15(14)c - Corrected the Form 1120-REIT (2017 and prior revisions) Line 24h reference for Total Payments and Credits. (IPU 24U0311 issued 02-29-2024)
(230) IRM 3.11.16.40.18(6) Note - Reworded the description of "asset tests" to "qualification tests other than the income or asset tests" for Schedule J, Lines 2b through 2g - Taxes, per Chief Counsel IRM review feedback.
(231) IRM 3.11.16.40.18(7)c - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule J, Lines 2b through 2g - Taxes per IRM review feedback.
(232) IRM 3.11.16.40.18(8) - Added a new paragraph for Form 1120-REIT, Line 1h, Section 1291 Tax from Form 8621, per UWR 983232 for PY 2025. Renumbered remaining paragraphs.
(233) IRM 3.11.16.40.18(9) - Added a new paragraph for Form 1120-REIT, Line 1i, Additional Tax Under Section 197(f), per UWR 983232 for PY 2025.
(234) IRM 3.11.16.40.18(10) - Added a new paragraph for Form 1120-REIT, Line 1j, Tax Adjustment from Form 8978, per UWR 983232 for PY 2025.
(235) IRM 3.11.16.40.18(11) - Added a new paragraph for Form 1120-REIT, Line 1k, Chapter 1 Tax Recapture from Form 4255, per UWR 983232 for PY 2025.
(236) IRM 3.11.16.40.18(12) - Added a new paragraph for Form 1120-REIT, Line 1z, Other Chapter 1 Tax, per UWR 983232 for PY 2025.
(237) IRM 3.11.16.40.18(13) - Corrected the Form 1120-REIT Schedule J, Lines 2b through 2g - Taxes, line references. (IPU 24U0311 issued 02-29-2024)
(238) IRM 3.11.16.40.18(13) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule J, Lines 2b through 2g - Taxes per IRM review feedback.
(239) IRM 3.11.16.40.20(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule J, Line 3b - Form 8834 Credit per IRM review feedback.
(240) IRM 3.11.16.40.21(1) - Corrected the Form 1120-REIT Schedule J, Line 3c - General Business Credit, line reference. (IPU 24U0311 issued 02-29-2024)
(241) IRM 3.11.16.40.22(1) - Corrected the Form 1120-REIT Schedule J, Line 6a - Schedule PH, line reference.
(242) IRM 3.11.16.40.22(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule J, Line 6a - Schedule PH per IRM review feedback.
(243) IRM 3.11.16.40.23 - Corrected the Form 1120-REIT Schedule J, Lines 6b and 6c- Interest on Deferred Tax Liability, line references.
(244) IRM 3.11.16.40.23(3) - Removed paragraph in Schedule J, Lines 6b and 6c- Interest on Deferred Tax Liability because it is no longer applicable.
(245) IRM 3.11.16.40.24 Title - Corrected the Title to Schedule J, Lines 6d and 6e- Form 4255 and Form 8611.
(246) IRM 3.11.16.40.24(1) - Corrected the Form 1120-REIT Schedule J, Lines 6d and 6e- Recapture of Investment Credit, line reference.
(247) IRM 3.11.16.40.25(1) 1st "Then" box c and d - Revised instruction for Form 1120-REIT Schedule K, Question 3 - Name of Common Parent per Course Development feedback.
(248) IRM 3.11.16.40.41(3) - Revised instruction and added three Exceptions for Form 1120-REIT Form 3800 - General Business Credit per UWR 983232 for PY 2025.
(249) IRM 3.11.16.40.43 - Added a new subsection to Form 1120-REIT for Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties. Form added per UWR 983232 for PY 2025.
(250) IRM 3.11.16.41.1(1) - Added Form 4255 to the Sequence - Form 1120-RIC instructions. Form 4255 added per UWR 983232 for PY 2025.
(251) IRM 3.11.16.41.9(1)c - Updated the editing location of the Form 1120-RIC ABLM Code per TF&P form revision for PY 2025.
(252) IRM 3.11.16.41.11.2(2) - Added Audit Code W for Form 1120-RIC per UWR 983232 for processing year 2025.
(253) IRM 3.11.16.41.13(6) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Page 1 - Gross Income Items, Lines 1 through 8 per IRM review feedback.
(254) IRM 3.11.16.41.16(2) - Added a new paragraph for Form 1120-RIC, Line 28a, Preceding Year’s Overpayment Credited to the Current Year, per UWR 983232 for PY 2025. Renumbered remaining paragraphs accordingly.
(255) IRM 3.11.16.41.16(3) - Added a new paragraph for Form 1120-RIC, Line 28b, Current Year’s Estimated Tax Payments, per UWR 983232 for PY 2025.
(256) IRM 3.11.16.41.16(9)a - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Page 2 - Tax and Payments, Lines 27 through 33 per IRM review feedback.
(257) IRM 3.11.16.41.16(10) - Corrected the Form 1120-RIC Line 28g reference for Elective Payment Election. (IPU 24U0311 issued 02-29-2024)
(258) IRM 3.11.16.41.16(11) - Added a new paragraph for Form 1120-RIC, Line 28z, Other Credits and Payments, per UWR 983232 for PY 2025.
(259) IRM 3.11.16.41.16(12)a - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Page 2 - Tax and Payments, Lines 27 through 33 per IRM review feedback.
(260) IRM 3.11.16.41.16(13) - Reworded paragraph for clarity per Chief Counsel IRM review feedback.
(261) IRM 3.11.16.41.17(2) - Added a Note to the instructions for Form 1120-RIC, Schedule J, Line 1 - Controlled Group Code, due to the form change for 2024 revision.
(262) IRM 3.11.16.41.18(4)c - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule J - Lines 1b through 1z per IRM review feedback.
(263) IRM 3.11.16.41.18(5) - Added a new paragraph for Form 1120-RIC, Line 1e, Section 1291 Tax from Form 8621, per UWR 983232 for PY 2025. Renumbered remaining paragraphs accordingly.
(264) IRM 3.11.16.41.18(6) - Added a new paragraph for Form 1120-RIC, Line 1f, Additional Tax Under Section 197(f), per UWR 983232 for PY 2025.
(265) IRM 3.11.16.41.18(7) - Added a new paragraph for Form 1120-RIC, Line 1g, Chapter 1 Tax Recapture, per UWR 983232 for PY 2025.
(266) IRM 3.11.16.41.18(8) - Added a new paragraph for Form 1120-RIC, Line 1z, Other Chapter 1 Tax, per UWR 983232 for PY 2025.
(267) IRM 3.11.16.41.20(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule J, Line 3b - Form 8834, Qualified Electric Vehicle Credit per IRM review feedback.
(268) IRM 3.11.16.41.21(1) - Corrected the Form 1120-RIC, Schedule J, Line 3c - General Business Credit, line references. (IPU 24U0311 issued 02-29-2024)
(269) IRM 3.11.16.41.22(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule J, Line 3d - Other Credits per IRM review feedback.
(270) IRM 3.11.16.41.23(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Schedule J, Line 6a - Schedule PH per IRM review feedback.
(271) IRM 3.11.16.41.24 - Corrected the Form 1120-RIC, Schedule J. Line 6b and 6c - Interest on Deferred Tax Liability, line references.
(272) IRM 3.11.16.41.24(3) - Removed paragraph due to new line changes on Form 1120-RIC for Schedule J. Line 6b and 6c - Interest on Deferred Tax Liability per LB&I/Enterprise feedback.
(273) IRM 3.11.16.41.25 - Corrected the Form 1120-RIC, Schedule J, Line 6d - Form 4255.
(274) IRM 3.11.16.41.26(1) - Added new instruction for Form 1120-RIC, Schedule J, Line 6z, Other, per UWR 983232 for PY 2025. Deleted (2) referencing Form 8611, Low Income Housing Credit, and (3) referencing the Recapture of Indian Employment Credit as they are not applicable.
(275) IRM 3.11.16.41.27 - Added a new subsection for Form 1120-RIC, Line 8b, Deferred Tax on the RIC’s Share of Undistributed Earnings of a Qualified Electing Fund, per UWR 983232 for PY 2025. Renumbered remaining subsections accordingly.
(276) IRM 3.11.16.41.28(1) 1st "Then "box c and d - Revised instruction for Form 1120-RIC Schedule K, Question 3 - Subsidiary Member of a Controlled Group per Course Development feedback.
(277) IRM 3.11.16.41.41(3) - Revised instruction and added three Exceptions for Form 1120-RIC Form 3800 - General Business Credit per UWR 983232 for PY 2025.
(278) IRM 3.11.16.41.42(3) - Added editing instruction for Return Processing Code (RPC) "9" when Form 8997 is attached. (IPU 24U0311 issued 02-29-2024)
(279) IRM 3.11.16.41.43 - Added a new subsection to Form 1120-RIC for Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties. Form added per UWR 983232 for PY 2025.
(280) IRM 3.11.16.42.12(5) - Reworded paragraph for clarity per Chief Counsel IRM review feedback.
(281) IRM 3.11.16.43(2) - Added new paragraph with background information for Form 4876-A, Election to be treated as an Interest Charge DISC. Renumbered remaining paragraphs. (IPU 24U0710 issued 05-31-2024)
(282) IRM 3.11.16.43.3(5) - Reworded final sentence in Document Perfection per Chief Counsel IRM review feedback.
(283) IRM 3.11.16.43.4(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Approved Elections per IRM review feedback.
(284) IRM 3.11.16.43.5(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Disapproved Elections per IRM review feedback.
(285) IRM 3.11.16.43.6(7) (8) (9) (10) - Rearranged the paragraph order and clarified instructions for Termination of Elections for Form 1120-IC-DISC. (IPU 24U0710 issued 05-31-2024)
(286) IRM 3.11.16.43.6(9)c - Added new statement in Termination of Election instruction per Chief Counsel IRM Review and feedback.
(287) IRM 3.11.16.43.6(12)a - Reworded sentence in Termination of Election instruction per Chief Counsel IRM review feedback.
(288) IRM 3.11.16.43.6(13) (14) - Reworded sentences in Termination of Election instruction per Chief Counsel IRM review feedback.
(289) IRM 3.11.16.43.6(14)c - Removed the Reminder because the information was clarified in the preceding paragraphs. (IPU 24U0710 issued 05-31-2024)
(290) IRM 3.11.16.43.8(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Taxpayer Notification of Action Taken on Form 4876-A per IRM review feedback.
(291) IRM 3.11.16.43.8(2) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Taxpayer Notification of Action Taken on Form 4876-A per IRM review feedback.
(292) IRM 3.11.16.43.8(3) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Taxpayer Notification of Action Taken on Form 4876-A per IRM review feedback.
(293) IRM 3.11.16.43.9(2) - Added tables with procedures for Letter 599C Replies and No Replies. (IPU 24U0710 issued 05-31-2024)
(294) IRM 3.11.16.43.9(2) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Form 4876-A File Review per IRM review feedback.
(295) IRM 3.11.16.44(3) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Form 1120-IC-DISC - Interest Charge Domestic International Sales - Corporation Return per IRM review feedback.
(296) IRM 3.11.16.44.1(3) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Due Date per IRM review feedback.
(297) IRM 3.11.16.44.2(2) - Reworded paragraph per Chief Counsel IRM review feedback.
(298) IRM 3.11.16.44.2(3)c - Reworded paragraph and added a cross reference to IRM 20.1.1.2.3 per Chief Counsel IRM review feedback.
(299) IRM 3.11.16.44.2(3)d - Added a cross reference to IRM 20.1.1.2.3 per Chief Counsel IRM review feedback.
(300) IRM 3.11.16.44.2(8) - Reworded paragraph per Chief Counsel IRM review feedback.
(301) IRM 3.11.16.44.2(9) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Eligibility Determination per IRM review feedback.
(302) IRM 3.11.16.44.2(9)a last "If" box - Reworded paragraph per Chief Counsel IRM review feedback.
(303) IRM 3.11.16.44.2(10)d - Reworded paragraph per Chief Counsel IRM review feedback and added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Eligibility Determination per IRM review feedback.
(304) IRM 3.11.16.44.3(1) - Reworded paragraph per Chief Counsel IRM review feedback.
(305) IRM 3.11.16.44.4(3) - Reworded paragraph per Chief Counsel IRM review feedback and added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Document Perfection of Form 4876-A per IRM review feedback.
(306) IRM 3.11.16.44.4(4) - Rewrote paragraph and combined correction procedures found in paragraphs (5) and (6) of Document Perfection of Form 4876-A per IRM review feedback. Deleted paragraphs (5) and (6). Renumbered remaining paragraphs accordingly.
(307) IRM 3.11.16.44.4(8) (9) (10) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Document Perfection per IRM review feedback.
(308) IRM 3.11.16.44.5(1) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Math Verification per IRM review feedback.
(309) IRM 3.11.16.44.5(13) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Math Verification per IRM review feedback, and combined paragraphs (14), (15), and (16) into a step list per Chief Counsel IRM review feedback.
(310) IRM 3.11.16.44.7(4)c - Added a cross reference to IRM 20.1.1.2.3 per Chief Counsel IRM review feedback.
(311) IRM 3.11.16.44.8(1) - Reworded paragraph and added a Note with a reference to Box C of Form 4876-A per Chief Counsel IRM review feedback.
(312) IRM 3.11.16.44.8(4) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Taxable Year of Form 1120-IC-DISC per IRM review feedback.
(313) IRM 3.11.16.45(1) - Added sentence to the paragraph regarding the filing of Form 8404, Interest Charge on DISC-Related Deferred Tax Liability, per Chief Counsel IRM review feedback.
(314) IRM 3.11.16.45(4)a - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Form 8404, Interest Charge on DISC-Related Deferred Tax Liability, per IRM review feedback.
(315) IRM 3.11.16.45(4)c - Updated the Base Period T-Bill Rate for 2023 for Form 8404, Interest Charge on DISC-Related Deferred Tax Liability.
(316) IRM 3.11.16.45(4)d "Then" box - Reworded the computation of Line 9 instructions per Chief Counsel IRM review feedback.
(317) IRM 3.11.16.45(6) - Added a cross reference to 3.11.16.3.4.2, Issuing Correspondence, to Form 8404, Interest Charge on DISC-Related Deferred Tax Liability per IRM review feedback.
(318) Exhibit 3.11.16-1, Due Date Chart - Moved here from Exhibit 3.11.16-2. Renumbered remaining exhibits.
(319) Exhibit 3.11.16-1, Due Date Chart - Updated Return Due Dates.
(320) Exhibit 3.11.16-2, Routing Guide for Attachments - Moved here from Exhibit 3.11.16-17. Renumbered remaining exhibits.
(321) Exhibit 3.11.16-2, Routing Guide for Attachments Table - Updates include:
Added a Note defining the "1120 series" returns and updated the table for Form 7208, Form 8023, and Form 8027 attachments. (IPU 24U0250 issued 02-12-2024)
Form 2220, Underpayment of Estimated Tax by Corporations, information.
Form 3800, General Business Credit, information.
Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties, information.
Form 4626, Alternative Minimum Tax, information.
Form 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies, information.
Form 8831, Excise Taxes on Excess Inclusions of REMIC Residual Interests, information.
Form 8908, Energy Efficient Home Credit, information.
Form 8936, Clean Vehicle Credits, corrected form name.
(322) Exhibit 3.11.16-3, Terms/Definitions/Acronyms - Moved here from Exhibit 3.11.16-22. Renumbered remaining exhibits.
(323) Exhibit 3.11.16-3, Terms/Definitions/Acronyms Table - Added Taxpayer Services (TS) and a Note about Wage and Investment (W&I) changing to Taxpayer Services. Removed Wage and Investment information. (IPU 24U0568 issued 04-25-2024)
(324) Exhibit 3.11.16-4, Potential Frivolous Arguments for Examination Review - Moved here from Exhibit 3.11.16-15. Renumbered remaining exhibits.
(325) Exhibit 3.11.16-5, U.S. Possessions ZIP Codes - Moved here from Exhibit 3.11.16-19. Renumbered remaining exhibits.
(326) Exhibit 3.11.16-6, Province, Foreign State and Territory Abbreviations - Moved here from Exhibit 3.11.16-16. Renumbered remaining exhibits.
(327) Exhibit 3.11.16-7, Area Office Codes - Moved here from Exhibit 3.11.16-1. Renumbered remaining exhibits.
(328) Exhibit 3.11.16-8 - Added 2023 to the Form 1120 - Prior Year Conversion Chart per UWR 983232 for PY 2025.
(329) Exhibit 3.11.16-8, Form 1120 Prior Year Conversion Chart - Added a line reference for Schedule J, Line 1 per SERP Feedback #16945. (IPU 24U0250 issued 02-12-2024)
(330) Exhibit 3.11.16-9- Added "2023" to the Form 1120-C - Prior Year Conversion Chart per UWR 983232 for PY 2025.
(331) Exhibit 3.11.16-9, Form 1120-C Prior Year Conversion Chart - Added a line reference for Schedule J, Line 1 per SERP Feedback #16946. (IPU 24U0250 issued 02-12-2024)
(332) Exhibit 3.11.16-10 - Added "2023" to the Form 1120-F - Prior Year Conversion Chart per UWR 983232 for PY 2025.
(333) Exhibit 3.11.16-13 - Added "2023" to the Form 1120-L - Prior Year Conversion Chart per UWR 983232 for PY 2025.
(334) Exhibit 3.11.16-14 - Added "2023" to the Form 1120-PC - Prior Year Conversion Chart per UWR 983232 for PY 2025.
(335) Exhibit 3.11.16-15 - Added "2023" to the Form 1120-REIT - Prior Year Conversion Chart per UWR 983232 for PY 2025.
(336) Exhibit 3.11.16-16 - Added "2023" to the Form 1120-RIC - Prior Year Conversion Chart per UWR 983232 for PY 2025.
(337) Exhibit 3.11.16-19, Form 3800 - Prior Year Conversion Chart - Added 2023 Revision compared to 2024 Revision table per UWR 983232 for PY 2025.
(338) Exhibit 3.11.16-20, Schedule F - Transfer Lines moved here from Exhibit 3.11.16-18. Renumbered remaining exhibits.
(339) Exhibit 3.11.16-22, USPS.com Track and Confirm moved here from Exhibit 3.11.16-20.
(340) Plain Language changes include:
Used simpler words
Used active tense (instead of passive tense)
Removed unnecessary words
Changed consistency sections per BMF Consistency template
Updated gender neutral language
IRM 3.11.16 - revised throughout to update organizational title Wage and Investment (W&I) to Taxpayer Services (TS) (IPU 24U0568 issued 04-25-2024)
Corrected spelling and grammatical errors
Corrected references, citations, and links
Corrected "the Service" to "the IRS" per Document 12835, IRM Style Guide under Acronyms
Updated Exhibits
Updated dates throughout including Tax Periods and Received Dates
Updated form titles
Deleted old line numbers throughout
Updated line numbers for all Form 1120 series throughout due to Tax Forms and Publication (TFP) form changes for PY 2025
Updated line titles for 1120 series throughout due to Tax Forms and Publication (TFP) form changes for PY 2025
Effect on Other Documents
IRM 3.11.16 dated November 28, 2023 (effective January 1, 2024) is superseded. The following IRM Procedural Updates (IPUs) issued January 3, 2024 through July 23, 2024, are incorporated into this IRM: 24U0029, 24U0151, 24U0250, 24U0311, 24U0362, 24U0444, 24U0464, 24U0568, 24U0710, 24U0818 and 24U0862.
Audience
This IRM is intended for use by Taxpayer Services (TS) personnel in the Submission Processing Campuses.
Effective Date
(01-01-2025)
James L. Fish
Director, Submission Processing
Taxpayer Services Division
Program Scope and Objectives
(1) This IRM section has instructions for Taxpayer Services (TS) Tax Examiners to process the following returns:
Form 1120, U.S. Corporation Income Tax Return
Form 1120-C, U.S. Income Tax Return for Cooperative Associations
Form 1120-F, U.S. Income Tax Return of a Foreign Corporation
Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation
Form 1120-H, U.S. Income Tax Return for Homeowners Association
Form 1120-L, U.S. Life Insurance Company Income Tax Return
Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons
Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return
Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts
Form 1120-RIC, U.S. Income Tax Return for Regulated Investment Companies
Form 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B)
Form 1120-IC-DISC, Interest Charge Domestic International Sales - Corporation Return
Form 8404, Interest Charge on DISC-Related Deferred Tax Liability
(2) Purpose: The purpose of Document Perfection is to Code and Perfect (Edit) documents.
(3) Audience: These procedures apply to employees responsible for coding and editing returns in this IRM including:
Clerks, Lead Clerks, and Supervisory Clerks
Tax Examining Technicians, Lead Tax Examining Technicians, and Supervisory Tax Technicians
(4) Policy Owner: Director, Submission Processing.
(5) Program Owner: Business Master File (BMF) Return Processing Branch.
(6) Primary Stakeholders: Other areas affected by these procedures include (but not limited to):
Accounts Management (AM)
Chief Counsel (CC)
Compliance
Information Technology (IT) Programmers
Large Business and International (LB&I)
Small Business Self-Employed (SBSE)
Statistics of Income (SOI)
Submission Processing (SP)
Taxpayer Advocate Service (TAS)
Tax Exempt and Government Entities (TEGE)
(7) Program Goals: Ensure all necessary action is taken on the return and attachments to ensure correct posting of the return data.
Background
(1) Document Perfection perfects 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 sends any other documents or attachments not related to the processing of the returns to the function responsible for handling them.
(2) Code and Edit does not mathematically verify or check the validity of the returns and other documents being processed unless otherwise specified in the applicable subsection. The computer and/or Error Correction (Resolution) will perform these functions if the returns and other documents are coded and edited as prescribed in the applicable subsections of this section.
Authority
(1) Authority for these procedures is found in the following sections of the Internal Revenue Code and their corresponding Treasury regulations:
IRC 6201(a) - Assessment Authority
IRC 6213(b) - Exceptions to restrictions on assessment
Responsibilities
(1) The Campus Director monitors operational performance for their campus.
(2) The Operations Manager monitors operational performance for their operation.
(3) The Team Manager/Lead monitors performance monitoring and ensuring employees have the tools to perform their duties.
(4) The Team Employees are responsible to follow the instructions in this IRM and maintain updated IRM procedures.
Program Management and Reviews
(1) Program Reports: The Batch/Block Tracking System (BBTS) stores a vast amount of data which can be used in performance monitoring and production projections.
(2) Program Effectiveness: The program goals are measured using the following methods:
Embedded Quality Submission Processing (EQSP)
Balanced Measures
Managerial reviews
Program Controls
(1) Quality Review conducts a statistical valid sample size review of completed work to ensure IRM guidelines are followed.
Terms/Definitions/Acronyms
(1) For Terms, Definitions and Acronyms, see Exhibit 3.11.16-3, Terms/Definitions/Acronyms.
General Information
(1) This IRM can’t address every possibility that occurs while perfecting returns or documents. Take taxpayer intent into consideration. Refer issues not addressed in this IRM to the subject matter expert (SME), lead or manager to determine the corrective action.
(2) The purpose of this section is to provide instructions for general required processing actions on corporate tax returns in order to eliminate repetition of the same instructions in different subsections.
(3) In case of a conflict of instruction between this general subsection and the subsequent specific subsection, the specific subsection will govern.
♦IRS Employee Contacts♦
(1) The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98), Section 3705(a) gives identification requirements for all IRS employees working tax-related matters.
(2) All IRS employees who communicate by telephone, face-to-face, or any other method of correspondence with taxpayers or their personal representatives on tax-related matters must give (at a minimum) the following information:
Telephone Contact - Their title (e.g., Mr., Mrs., Ms., Miss), last name and badge identification (ID Card) number. Toll-free employees may also give their location for identification purposes. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.
Face-to-Face Contact - Their title (e.g., Mr., Mrs., Ms., Miss), give as appropriate during the conversation, their last name and badge identification (ID Card) number.
Correspondence (sent to the taxpayer and authorized representatives) - A telephone number that taxpayers can call for answers to questions. In addition, manually generated correspondence must have the employee's title (e.g., Mr., Mrs., Ms., Miss), last name, Integrated Data Retrieval System (IDRS) number, and letter system number, which are systemically generated by IDRS. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.
Correspondex letters - Specific employee name and telephone number if the employee initiating the correspondence is in the best position to respond to any questions the taxpayer may have or if the taxpayer is being asked to give more case-related information. If the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.
(3) When taxpayer requests to speak with a specific employee who previously worked their inquiry or request, or complains about the level of service previously given, make every attempt to resolve the taxpayer's inquiry. If unable to resolve the issue, refer the inquiry using established procedures to the manager.
(4) Secretaries, receptionists, or other people who answer the telephone in functional offices need to identify themselves. They should provide their badge identification (ID Card) number only if they are answering telephones which are routinely used to give tax or account information.
(5) It is not necessary to repeat the badge identification (ID Card) number on a later contact, when the nature of an employee's work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either by telephone or in-person) their badge identification (ID Card) number on the first contact.
♦BMF Consistency♦
(1) The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Code and Edit processing IRMs.
(2) Ogden, Kansas City, and Return Processing Branch, BMF Code and Edit and Error Resolution System (ERS) identified and developed topics for BMF Consistency.
(3) A ♦ (diamond) before and after the subsection title shows BMF Consistency subsections.
(4) Text in normal print is the common process for BMF tax returns. The text in BOLD print is form specific and applies to this IRM only.
♦IRM Deviation Procedures♦
(1) Submit IRM deviations in writing following instructions from IRM 1.11.2.2.3, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.
♦Taxpayer Advocate Service (TAS)♦
(1) The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate, that helps taxpayers and protects taxpayer rights. TAS offers free help to taxpayers when a tax problem is causing a financial difficulty, when they’ve tried and been unable to resolve their issue with the IRS, or when they believe an IRS system, process, or procedure just isn't working as it should. TAS strives to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.
(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. See IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines.
(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.
The IRS takes steps within 24 hours to resolve the taxpayer’s issue.
(5) When making a TAS referral, use Form 911, and forward to TAS in accordance with local procedures.
(6) For more information, see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, and IRM 13.1.7.4 , Exceptions to Taxpayer Advocate Service Criteria, for information on cases that TAS will no longer accept.
♦TAS Service Level Agreements (SLAs)♦
(1) The National Taxpayer Advocate (NTA) reached agreements with the Commissioners or Chiefs of the Taxpayer Services (TS) Division, Small Business and Self-Employed (SB/SE) Division, Tax Exempt Government Entities (TE/GE), Criminal Investigation (CI), Independent Office of Appeals, and Large Business and International (LB&I) that outline the procedures and responsibilities for processing Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs).
(2) The SLAs are found at https://irsgov.sharepoint.com/sites/TAS/SitePages/SLA.aspx.
♦Edit Marks♦
(1) Edit marks are edited on the tax return for transcription to the Automatic Data Processing (ADP) System through Integrated Submission and Remittance Processing (ISRP). Enter edit marks in brown, red, orange, purple, or green pencil or pen.
(2) Only edit items on the return that are for transcription except where specific instructions require editing of a non-transcribed item. Leave lines blank if the entry would be a zero amount unless otherwise instructed.
(3) Do not obliterate, alter, or erase the original entry on a return when deleting or correcting an entry. Always exercise care to ensure that the original entry remains legible. Perfected entries provide a legible "edit trail" for anyone who may work with the return later.
(4) Do not re-edit edit marks entered by other areas, such as Collections, Entity or Accounts Management, except to place the marks in the correct area or perfect for legibility.
Exception: Photocopied Returns.
(5) Photocopied Returns - Re-edit or underline any valid, black edit marks. See IRM 3.11.16.3.4.3, Correspondence Imaging Inventory (CII) Returns, and IRM 3.11.16.3.8 Re-Entry Document Procedures.
(6) For a description of specific edit marks, see the table below:
Edit Mark | Description |
|---|---|
"X" | Deletes tax data or indicates do not transcribe an item. For example, if deleting an original entry, edit an "X" to the left of the entry to delete. Edit the correct entry to the left or above the "X". |
"/ "(slash) | Indicates do not transcribe a form or schedule. |
"/ /$" | Identifies the beginning and ending of a foreign country code in the entity area. For example, "/EI/$" is edited for "Ireland" or "/GM/$" is edited for "Germany". |
"c/o" or "%" | Indicates an "in-care-of" name for transcription. |
Circle | Indicates do not transcribe an entry. Also, deletes entity data or a Received Date. Note: If the taxpayer circles an entry, edit the entry. |
Underline | Identifies an entry for transcription (e.g., Name Control, Tax Period). |
Arrow | Indicates the correct placement of a misplaced entry. Use an arrow if the misplaced item is close to the correct line and there is no question where the entry belongs. Note: Use a double arrow to identify the same figure for transcription in two different places (along with any required transcription data between the two arrows). |
Check Mark | Indicates that an entry was manually math verified and is correct. |
Bracket/Parenthesis | Indicates a negative numerical amount. Note: C&E is not required to bracket negative amounts when brackets are preprinted on the form or schedule or when the taxpayer clearly indicates a negative amount with brackets "( )" or "-" sign. Bracket negative amounts when editing negative entries on transcription lines (e.g., computing and entering a line entry, entering a missing line entry). |
Vertical Line or Decimal Point | Indicates the separation of dollars and cents. |
Zero, Dash, None, or N/A | "ZERO," "DASH," "NONE," or "N/A" are valid entries except when specific instructions require editing of an entry. |
Rocker | Indicates the amount paid when drawn under a remittance amount. |
♦Frivolous Arguments♦
(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 Return Program, shown in Exhibit 3.11.16-4, Frivolous Return Program for Examination Review.
(2) Review the tax return to decide whether it appears to be a frivolous return.
If | Then |
|---|---|
The return meets any of the conditions shown as a frivolous return, see Exhibit 3.11.16-4, Potential Frivolous Arguments for Examination Review, Exception: If the return shows Action Code "331," and has a Form 4227, Intra-SC Reject or Routing Slip, attached with the remarks, "Refer to Exam FRP for audit after processing," continue to next procedure. | Remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Program (FRP) for review. |
Examination has selected the return as frivolous (e.g., shown by an Action Code "331," and a Form 4227, Intra-SC Reject or Routing Slip, with the remarks, "Refer to Exam FRP for audit after processing," but sends the return for processing), | Continue processing the return using procedures in IRM 3.11.16. However, do not circle or void the Action Code showing a frivolous return. |
(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.
♦Foreign Currency♦
(1) For tax returns completed in other than United States (U.S.) currency, process as filed. However, if corresponding for missing/incomplete item(s), include in the letter to resubmit in U.S. currency.
♦Protective Claims♦
(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, Intra-SC Reject or Routing Slip.
Note: Do not remove any Form 1120-F with the "Protective return" box (upper right-hand corner) checked from the batch. These returns are not considered "Protective Claims."
Exception: If the return is amended, do not remove from the batch. Edit Computer Condition Code "G" and follow normal processing procedures.
♦Criminal Investigation (CI) Referral♦
(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 of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, do the following:
Refund Claim | Kansas City and Ogden |
|---|---|
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ |
|
(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:
Make a copy of the first two pages of the tax return along with any page on the return that appears suspicious.
Attach Form 4227, Intra-SC Reject or Routing Slip, to the copy.
Route the copy as shown in the table below.
Edit an action trail "Copy to CI," or "CI Referral," or similar language in the lower left corner going vertically up the side of the return.
Continue processing the return.
Ogden | Kansas City |
|---|---|
Mail Stop 9001, Criminal Investigation (CI) | Mail Stop S2 9000, Criminal Investigation (CI) |
(6) If the return fits other criteria (e.g., Frivolous Argument), take proper action.
♦Examination (Exam) Funny Box♦
(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.
♦Business Master File (BMF) Identity (ID) Theft♦
(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.
Section 965 Returns (201712 through 202012)
(1) The instructions in this subsection only apply to Tax Period 201712 through 202012.
(2) Section 965, as amended by the Tax Cuts and Jobs Act (TCJA) of 2017, requires certain taxpayers to pay a transition tax on the untaxed foreign earnings of certain specified foreign corporations as if those earnings had been repatriated to the United States.
(3) Identify a corporate Section 965 return when any of the following are present and the corporation’s Tax Period is 201712 through 202012:
Form 965, Inclusion of Deferred Foreign Income Upon Transition to Participation Exemption System, is attached.
Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net Tax 965 Tax Liability and Electing REIT Report of 965 Amounts, is attached.
IRC 965 Transition Tax Statement (or similar statement) is attached for TY2017.
A significant entry is present on any of the following forms and/or lines.
Note: A significant entry is defined as any amount other than zero.
Schedule C, Line 15
Schedule J, Line 12
Schedule J, Line 22
Page 1, Line 32
Schedule C, Line 15
Page 2, Line 29
Page 2, Line 30i
Page 1, Line 27
Page 1, Line 28i
Page 1, Line 14
Page 1, Line 15d
Page 2, Line 24
Page 2, Line 25h
Page 1, Line 28
Page 1, Line 29i
Form | Lines |
|---|---|
Form 1120 | |
Form 1120-C | |
Form 1120-L | |
Form 1120-PC | |
Form 1120-REIT | |
Form 1120-RIC |
(4) When a return has been identified as a Section 965 return, edit as follows:
Completely edit the return.
Edit CCC "J," see IRM 3.11.16.9.1.10, CCC "J" - Section 965.
Edit Action Code "460," see IRM 3.11.16.3.1, Action Codes.
Do not issue correspondence on the return. ERS will correspond for any missing information.
Elective or Deemed Payment Election (DPE) and Credit Transfers (202201 to 202212)
(1) Under the Inflation Reduction Act (IRA) of 2022 and CHIPS and Science Act of 2022, the taxpayer can elect to:
Take certain credits as an “Elective or Deemed Payment.”
Transfer certain credits to another taxpayer.
Claim the credit as a General Business Credit.
(2) For Tax Period 202201 to 202212, identify an "Elective or Deemed Payment Election" when the taxpayer writes "IRA22DPE" on Form 3800 or on an attachment or on any of the following lines (2022 and prior revisions):
Form | Lines |
|---|---|
Form 1120 | Schedule J, Line 20d |
Form 1120-C | Line 30f(1) |
Form 1120-F | Line 5j |
Form 1120-H | Line 23e |
Form 1120-L | Line 28g(1) |
Form 1120-PC | Line 15i |
Form 1120-REIT | Line 25f(1) |
Form 1120-RIC | Line 29f |
(3) When a return is identified with an "Elective or Deemed Payment Election", do the following:
Completely edit the return.
Edit RPC "J."
Place a flag at the top of the return and attach the "IRA22 DPE/TRE Reminder" sheet to the return.
Note: P&A will provide the pre-printed half-sheets for C&E to use.
Give the return to the lead.
The lead will have the returns rebatched with "DPE" in the batch ID.
(4) Identify a "Credit Transfer" when the taxpayer writes "IRA22TRE" at the top of the return or on an attachment. When found, do the following:
Completely edit the return.
Edit RPC "K."
Place a flag at the top of the return and attach the "IRA22 DPE/TRE Reminder" sheet to the return.
Note: P&A will provide the pre-printed half-sheets for C&E to use.
Give the return to the lead.
The lead will have the returns rebatched with "TRE" in the batch ID.
Note: A return can have both an RPC "J" and an RPC "K."
(5) Treat taxpayers who claim the credit on Form 3800 with no other indication of claiming the "Elective or Deemed Payment Election" or "Credit Transfer" as normal. See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit.
Unprocessable Documents - Error Resolution System
(1) The Document Perfection tax examiner will have the first opportunity to identify a problem which requires correspondence, research, or other action to make the return processable. Depending on the type of return, either an Action Code or Computer Condition Code (CCC) "U" is edited to find these unprocessable returns.
(2) The tax examiner will determine the kind of action required and assign an Action Code to the return which will force it to Error Resolution System (ERS) (on-line correction system). The code will show whether correspondence, research, or some other action is needed. Action Codes apply only to:
Form 1120
Form 1120-C
Form 1120-F
Form 1120-H
Form 1120-L
Form 1120-PC
Form 1120-REIT
Form 1120-RIC
(3) The following forms are processed through a manual correction system: Use Computer Condition Code "U" on these returns when action such as correspondence is needed.
Form 1120-FSC
Form 1120-ND
Form 1120-SF
♦Action Codes♦
(1) Action Codes are used to show whether correspondence, research, or some other action is needed. The Action Code sets the suspense period for the return and places the return in the workable or unworkable suspense inventory.
(2) When necessary, assign a three-digit Action Code. Action Codes are valid on:
Form 1120
Form 1120-C
Form 1120-F
Form 1120-H
Form 1120-L
Form 1120-PC
Form 1120-REIT
Form 1120-RIC
(3) Edit the Action Code in the bottom left margin of the tax return.
(4) Assign Action Codes in the following priority:
Action Code "310" (Statute Control).
Action Code "320" (Entity Control).
Action Code "4XX"
Action Code "6XX"
Action Code "3XX"
Action Code "2XX" (Correspondence).
(5) Use the following table if more than one Action Code is needed:
If | Then |
|---|---|
Action Codes include 211, 215, 225, or 226 and Action Code 341, |
|
Action Codes have the same priority, |
|
Action Codes have different priorities, |
|
(6) See Figure 3.11.16-1.
(7) Edit the following Action Codes when a return can’t be perfected:
Action Code | Description |
|---|---|
"211" (First Correspondence) or "215"(International Correspondence) |
|
"225" (Missing Signature Correspondence) |
|
"226" (Missing Signature International Correspondence) |
|
"440" (LB&I, review of Form 1120-F) |
|
"460" (Section 965 indicated) |
|
"480" (Early Filed - Suspense) |
|
"610" (Renumbered non-remittance) or |
|
"640" (Void) |
|
"650" (International) |
|
(8) Continue perfecting the return after editing the Action Codes.
(9) Valid Action Codes are listed below:
Action Code | Description | Workday Suspense Period |
|---|---|---|
211 | First Taxpayer Correspondence | 40 |
215 | International Correspondence | 45 |
225 | Taxpayer Correspondence (Signature Only) | 40 |
226 | International Correspondence (Signature Only) | 40 |
310 | Statute Control | 10 |
320 | Entity Control | 10 |
321 | Entity Control - Form 1120 with Form 851, Affiliations Schedule, attached | 20 |
322 | Foreign Investment in Real Property Act (FIRPTA) Credit Verification | 10 |
331 | Frivolous Review | 3 |
341 | Manual Refund | 10 |
342 | Credit Verification | 10 |
345 | Form 1120-F Total Tax Math Error |
|
346 | Form 1120-F Balance Due Math Error |
|
352 | Name Research | 3 |
360 | Other In-House Research | 10 |
370 | Examination - Prompt Assessment - Form 4810, Request for Prompt Assessment under Section 6501(d) | 10 |
420 | Management Suspense A - (2006 Tax Return with Form 8913, Credit for Federal Telephone Excise Tax Paid) | 5 |
440 | Management Suspense C, Large Business and International (LB&I) review of Form 1120-F in OSPC only) | 15 |
450 | Management Suspense D | 20 |
460 | Management Suspense E Note: Used for "Section 965" identification. | 25 |
480 | Early Filed Suspense | 150 |
610 | Renumber - Non-Remittance | 0 |
611 | Renumber - Remittance | 0 |
640 | Void | 0 |
650 | International | 0 |
(10) For more information and applicable Action Codes, see IRM 3.12.38.3.4, Error Resolution System (ERS) Action Codes, and the exhibit in IRM 3.12.38-1, Action Codes.
Form 1120 Series Returns Worked in Ogden Only
(1) A tax return is an "Ogden Submission Processing Center (OSPC) only" return if at least one of the following conditions exists:
The tax return has a foreign address.
The tax return is a Form 1120-C.
The tax return is a Form 1120-F.
The tax return is a Form 1120-FSC.
The tax return is a Form 1120-L.
The tax return is a Form 1120-ND.
The tax return is a Form 1120-PC.
The tax return is a Form 1120-SF.
There is a refund credit claimed because of U.S. income tax paid or withheld at source because of the Foreign Investors in Real Property Tax Act whether or not Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons.
Note: Form 8288-A credit must be verified by the OSPC Foreign Team.
Treatment of All Unprocessable Tax Returns
(1) Kansas City Submission Processing Center (KCSPC) - If the tax return is an Ogden Submission Processing Center (OSPC) "only" return:
Discontinue perfection of the return.
Prepare Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform the taxpayer the return has been sent to Ogden Submission Processing Center.
Edit an Action Trail (e.g., 86C Sent or similar language) in the lower left corner going vertically up the side of the return.
(2) If the tax return is other than an OSPC "only" return, perfect the return if possible:
Examine schedules and other attachments for the necessary information and edit the return as needed for processing.
If perfection is not possible, perfect to the extent possible and proceed as set forth in (3) below.
(3) Action to secure perfection:
Where indicated, prepare Form 4227, Intra-SC Reject or Routing Slip, showing the reason for rejecting the document and that the document must be resubmitted for processing when it has been perfected.
Attach the Form 4227, to the face of document in such a position that the Employer Identification Number (EIN) is visible for transcription.
If the tax return has not been numbered, withdraw it from processing and send it to the proper activity.
For numbered Form 1120-FSC, Form 1120-ND, and Form 1120-SF, edit Computer Condition Code (CCC) "U" and attach Form 4227.
For numbered Form 1120, Form 1120-C, Form 1120-F, Form 1120-H, Form 1120-L, Form 1120-PC, Form 1120-REIT, and Form 1120-RIC, edit the right Action Code in the bottom left margin of the return and leave it in the block.
♦Correspondence♦
(1) There are two types of correspondence that C&E may encounter:
Correspondence received from taxpayers, and
Correspondence Issued to taxpayers.
♦Definition of Correspondence from Taxpayers♦
(1) Correspondence is all written communications from a taxpayer or their representative, excluding tax returns, whether solicited or unsolicited. This includes:
Written communications in response to the IRS requests for information or data.
Written communications, including annotated notice responses, which provide more information or dispute a notice.
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:
Is the taxpayer waiting for a response from the IRS?
Is the taxpayer waiting for the IRS to take action?
Is the taxpayer asking a question?
Note: A Post-It-Note, Sticky Note, or some other type of note stuck on the return by another function, for example - "Taxpayer (TP) requests penalties be waived" - does not constitute correspondence from the taxpayer.
♦Issuing Correspondence♦
(1) Issue correspondence to resolve any conditions causing the return to be unworkable or unprocessable.
Exception: Section 965 Returns - Do not issue correspondence on the return. ERS will correspond for any missing information.
Exception: Do not correspond on returns prepared by Collections, Section 6020(b) or by Examination, "Substitute for Return" (SFR).
(2) If the return is incomplete and doesn't appear to be a return meant for filing or is a conduit for providing information (e.g., indicates "payment only”), give the return to the lead. The lead must determine the correct course of action. The lead researches for a Transaction Code (TC) 150 and any other information necessary to determine if the return should continue processing, is an amended return, or must be routed to another function. An incomplete return could include any of the following:
A one-page return, with or without a signature.
Incomplete returns showing "Payment Only."
Incomplete returns showing they have previously e-filed.
Note: This list is not all inclusive. Tax examiners may see other unusual documents not addressed in this subsection or in other areas of the IRM.
(3) Correspond for back up forms and schedules ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Exceptions:
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≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Example: Substantial evidence includes closing documents or settlement statement which shows the amount of tax withheld.
Exception: If a letter is attached, signed by the Competent Authority, accept the letter as proof of Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, withholding and do not correspond for the missing Form 1042-S.
(4) Examine the return for all unprocessable conditions before initiating correspondence.
If | And | Then |
|---|---|---|
The return needs correspondence, | Requires a response, |
|
The return needs correspondence, | Does not require a response, |
|
Note: There are more campus exclusive letters. They are for processing specific forms or conditions. Go to the lead or manager for copies of these letters.
♦Correspondence Imaging Inventory (CII) Returns♦
(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.
Note: Correspondence Imaging System (CIS) changed to Correspondence Imaging Inventory (CII).
(2) "CII" returns show a "CII Image - Do not correspond for Signature" stamped below the signature line or a "CII" annotation on the front of the return.
(3) Verify all edit marks and ensure placement is correct on a "CII" return.
If | Then |
|---|---|
The edit marks are black, | Underline the edit mark if correct or circle if incorrect. |
The edit marks are red or green, | Circle if incorrect. |
The edit marks are missing or incorrect, | Perfect as necessary. |
(4) Follow the correspondence instructions below for "CII" returns:
If | And | Then |
|---|---|---|
The "CII" return has a Form 13596, Reprocessing Returns, attached, | The return is incomplete (e.g., missing signature, schedules, or forms), |
|
The "CII" return has a Form 13596, Reprocessing Returns, attached and the return is incomplete (e.g., missing signature, schedules, or forms), | The return shows correspondence was sent (e.g., CCC "3" is edited on the return), | Do not route the return to AM. Continue processing the return. |
The "CII" return does not have a Form 13596, Reprocessing Returns, attached, | The return is incomplete (e.g., missing signature, schedules, or forms), | Follow normal correspondence procedures. |
♦Use of Fax for Taxpayer Submissions♦
(1) Taxpayers may send tax return information via fax as part of return perfection even when submitting a signature. In circumstances where contact with the taxpayer was made and documented, faxed signatures are acceptable.
(2) Contact the taxpayer by telephone or correspondence. Follow local procedures to decide which method of contact to use.
(3) Indicate the fax paragraph on the approved Correspondence Action Sheet to inform the taxpayer of the fax options.
(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 Voice mail
IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance
C/SC Letters
(1) Listed below are letters provided by Headquarters for Submission Processing Center use in corresponding for items listed in this IRM. Tax examiners or their supervisors (or delegates) will have access to and be familiar with the Submission Processing Center Correspondex Handbook for selection of right letters.
Letter 118C, Corporate Return Incomplete for Processing: Form 1120, Form 1120 Series, Form 1120-S.
Letter 319C, Return Covers Other Than 12-month Accounting Period.
Letter 3064C, IDRS Special Letter.
♦Compliance Secured/Prepared Returns♦
(1) Compliance notates:
Prepared tax returns with "6020(b)" or "SFR" (Substitute for Return).
Secured tax returns with "TC 59X" or "ICS" or "Process as Original" with a Form 13133, Expedite Processing Cycle, attached with the "Delinquent Return" box checked.
Note: If "RD" (Return Delinquency) is notated on the front of the return and not circled, remove from the batch and route to Collections.
♦IRC 6020(b) - Prepared by Collections♦
(1) When the taxpayer doesn’t file a required return, IRC 6020(b) is the authority for the IRS to prepare the return.
(2) These returns are identified by the notation: "PREPARED AND SIGNED UNDER AUTHORITY OF SECTION 6020(b) OF THE INTERNAL REVENUE CODE," which is located in the center bottom of Page 1.
Returns must have a received date. If missing, follow the normal procedures for editing the received date, see IRM 3.11.16.8, Received Date.
Compliance Function representatives must sign returns. If not signed, route to Compliance using Form 4227, Intra-SC Reject or Routing Slip.
Note: Accept revenue officer (RO) typed or electronic signatures as valid signatures on the return.
Edit CCC "D" if the Compliance Function representative notates: "DO NOT ASSESS FAILURE TO PAY PENALTY" and the return due date (without regard to extensions) is July 30, 1996 or prior.
Note: Do not edit CCC "D" if the return due date is after July 30, 1996 (without regard to extensions) even if the Compliance Function representative notates "DO NOT ASSESS FAILURE TO PAY PENALTY."
Do not correspond with the taxpayer for unprocessable conditions. If the return is unprocessable, edit CCC "3" and continue processing.
Edit CCC "W" if the received date is more than two years and nine months after the return Due Date. Do not send the return to Statute Control.
♦Collection Secured♦
(1) These returns are identified by the notations: "TC 59X" or "ICS."
Do not edit CCC "G" on these returns.
Use approved Correspondence Action Sheet to correspond for conditions that are unprocessable (e.g., missing signatures, missing schedules).
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.
Reminder: If there is a sign penalties require suppression, edit the right Computer Condition Code(s). Please refer to IRM 3.11.16.9.1, Computer Condition Codes, for more information.
♦Examination Prepared Returns♦
(1) These tax returns are identified by the notation "SFR" or "SUBSTITUTE RETURN" on Page 1.
The return must have a received date. If no received date is present, follow the normal procedures for editing the received date.
Do not correspond with the taxpayer for unprocessable conditions. If the return is unprocessable, edit CCC "3" and continue processing.
If Form 13133, Expedite Processing Cycle, is attached, edit the Computer Condition Codes checked on the form.
Note: Do not enter CCC "D" unless the return due date (without regard to extensions) is July 30, 1996 or prior, even if the CCC “D” box is checked on Form 13133.
Edit CCC "W" if the received date is more than two years and nine months after the return Due Date. Do not send to Statute Control function.
♦Examination Secured♦
(1) These tax 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.
Do not edit CCC "G" on these returns.
Use approved Correspondence Action Sheet to correspond for conditions that are unprocessable (e.g., missing signatures, missing schedules).
Edit the Computer Condition Codes checked on Form 13133.
Edit CCC "W" if the received date is more than two years and nine months after the return Due Date. Do not send to Statute Control function. See IRM 3.11.16.9.1.23, CCC "W" - Return Cleared by Statute Control.
Reminder: If Form 13133 (or something similar) indicates penalties require suppression, edit the right Computer Condition Code(s). Please refer to IRM 3.11.16.9.1, Computer Condition Codes, for more information.
♦Statute Returns♦
(1) Any tax return with a received date that is two years and nine months or more after the Return Due Date is a potential statute control return.
(2) Route statute returns to the Statute Control Unit daily or more often if needed.
(3) If any of the conditions listed below are present, do not route to Statute Control Unit for clearance. Instead, edit CCC "W" and continue processing.
Compliance IRC 6020(b) returns
Secured by Examination/Collections, including TEGE or TEGE Employee Plan (EP) Exam
Returns with Transaction Code (TC) TC 59X or "ICS" notated on the face of the return
Returns showing "substitute returns prepared by Examination (SFR)" in top margin of the return
Returns with a stamp showing a previous clearance by Statute Control within the last 90 days
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 a return has any of the following computer paragraphs (CPs) or letters attached, do not route to Statute Control Unit for clearance. Edit CCC "W" if the return needs processing. See Exhibit 3.11.16-2, 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 (Forms 720, 1041, 1065, 1120)
Letter 2284-C, Delinquent Return (Form 940, 941, 942, 943)
(5) If a return has a Form 12412, Operations Assistance Request (OAR), from TAS and is a potential statute Control return but is not stamped "Cleared by Statute", give it to the lead. The lead contacts the TAS employee listed on the OAR for rejection of the return and sends it back to TAS for clearance by the Statute Control Unit.
Note: If the return is within 90 days of the statute expiration date, advise the TAS employee of such and route the return directly to Statute Control for clearance.
(6) Statute returns are unprocessable until cleared by Statute Control.
If | Then |
|---|---|
The return is numbered, |
|
The return is unnumbered, |
|
(7) Edit CCC "W" if the Statute Control Unit stamps or shows clearance on the front of the return.
(8) Follow the chart below to determine if CCC "W" is needed.
If | And | Then |
|---|---|---|
The return received date is two years and nine months or more after the Return Due Date, | The return is stamped, "No Statute issue," "Statute N/A," or a similar statement showing there is no statute issue, | Edit CCC "W." |
The return received date is less than two years and nine months from the Return Due Date, | The return is stamped, "No Statute issue," "Statute N/A," or a similar statement showing there is no statute issue, | Do not edit CCC "W." |
♦Re-Entry Document Procedures♦
(1) A tax return posted to the wrong account or module or attempting to post must be reprocessed to post to the proper account or module.
(2) Some re-entry returns may have originally been filed electronically (E-File). These returns may be identified by the presence of Mod E-File printouts in lieu of an actual return. Do not correspond for missing signatures on these documents.
(3) Each re-entry tax return must have a Form 3893, Re-Entry Document Control or Form 13596, Reprocessing Returns, attached.
Form 3893 is used to reinput returns that have not posted to an account or module.
Form 13596 is used to reprocess returns to the correct account or module that had previously posted to the wrong account or module.
(4) Always leave the Form 3893 or Form 13596 on the front of the return. It must remain as a permanent part of the document.
(5) Examine Form 3893 or Form 13596 to determine the action needed to make the return processable.
Caution: If the received date is two years and nine months or more after the Return Due Date, refer to Statute procedures before re-entering or reprocessing the return, see IRM 3.11.16.3.7, Statute Returns.
♦Form 3893 - Re-Entry Document Control♦
(1) Reprocess a return posted to the wrong account or module to post it to the correct account module.
(2) If more than one return is in the batch and only the top Form 3893 has an entry in Box 1 (Alpha/Numeric block control no.), edit all returns using current processing instructions and keep all returns clipped together.
(3) Circle the CCC "G" if present.
(4) Do not Edit CCC "G" on amended returns.
(5) Do not send Letter 1382C, Penalty Removal Request Incomplete, if a request for reasonable cause is attached.
(6) If the return is not edited according to current processing instructions, circle any Action Codes, Computer Condition Codes and any other edit marks that are no longer applicable. Re-edit according to current processing instructions.
(7) If the return is edited according to current processing instructions, ensure that the information from Form 3893 is edited to the return.
Form 3893 | Action Taken |
|---|---|
Box 14 (Remarks) |
|
Box 15 (Process as) |
|
(8) Examine returns that have any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.
If | Then |
|---|---|
Improper perfection, | Edit the same correction in red/green (per local procedure) to the right area. |
Taxpayer error, | Leave the entries as shown on the document. |
(9) A received date must be present on all re-input returns.
If | Then |
|---|---|
Received date is not present, | Edit a received date to the middle of the return, see IRM 3.11.16.8, Received Date. |
Multiple Received Dates are present, | Circle all but the earliest date. |
(10) When more information is still needed to make the return processable, prepare approved Correspondence Action Sheet or Form 4227, Intra-SC Reject or Routing Slip, for the proper action (e.g., correspondence, research).
(11) When perfection is not possible, edit Action Code "640" (or CCC "U") and attach Form 4227 noting "PERFECTION NOT POSSIBLE" and leave in batch.
♦Form 13596 - Reprocessing Returns♦
(1) Form 13596, Reprocessing Returns, is used to reprocess a return to the correct account or module that had previously posted to the wrong account or module.
(2) Circle CCC "G" if present.
(3) Do not edit CCC "G" on amended returns.
(4) Do not send Letter 1382C, Penalty Removal Request Incomplete, if a request for reasonable cause is attached.
(5) If the return is not edited according to current processing instructions, circle any Action Codes, Computer Condition Codes, and any other edit marks that are no longer applicable. Re-edit according to current processing instructions.
Caution: If a Form 1120 converted from Form 1120-S is received, ensure that the following items are present: EIN, name control, North American Industry Classification System (NAICS), received date, audit code 4, Tax Period (prior year returns), and CCC "3" (as applicable for No Replies). If not, then edit the needed items. No other editing is required.
(6) If the return is edited according to current processing instructions, ensure that the information from Form 13596 is edited on the return.
Form 13596 | Action Taken |
|---|---|
Taxpayer Identification Number (TIN) correction, | Edit the correct TIN on tax return. |
Tax period correction, | Edit the correct Tax Period ended on the tax return. |
Reasonable cause, | Edit right Computer Condition Code.
|
(7) Examine returns that have any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.
If | Then |
|---|---|
Improper perfection, | Edit the same correction in red/green (per local procedure) to the right area. |
Taxpayer error, | Leave the entries as shown on the document. |
(8) A received date must be present on all reprocessed returns.
If | Then |
|---|---|
Received date is not present, | Edit a received date to the middle of the return, see IRM 3.11.16.8, Received Date. |
Multiple received dates are present, | Circle all but the earliest date. |
(9) Circle any green rocker and edit marks that may indicate a receipt of remittance.
(10) When more information is still needed to make the return processable prepare an approved Correspondence Action Sheet or Form 4227, Intra-SC Reject or Routing Slip, for the proper action (e.g., correspondence, research).
♦Amended Returns♦
(1) A return is considered Amended based on the following:
The "Amended" box is checked
On MeF returns the "Superseded Return" or the "Amended Return" box is checked. The "Superseded Return" and the "Amended Return" boxes will only be on MeF returns that have been printed. They will be located on Line E.
Words such as "Supplemental," "Corrected," "Additional," "Superseded" 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 submitted to explain the reason for the Amended return. Accounts Management may use the information.
Detach any unrelated documents and route them to the correct function using Form 4227, Intra-SC Reject or Routing Slip. Edit an Action Trail on the return.
Note: Pull any amended return that has "CBR" notated and route to AM.
(3) Follow the instructions in the chart below when there is a sign of an amended return:
If | Then |
|---|---|
Compliance Services entered "TC 59X" or "ICS" on the return, |
|
Statute Control stamped the return "Delinquent Original Cleared for Processing", |
|
Form 3893 or Form 13596, Reprocessing Returns, is attached, |
|
None of the above are present, |
Exception: CCC "S," "T," "U," "W," "3" and/or Error Resolution System (ERS) Action Codes may be used with CCC "G." |
(4) The following data must be edited on all amended returns:
Name control, see IRM 3.11.16.6.3, Entity Perfection - Name Control
EIN, see IRM 3.11.16.6.2, Entity Perfection - Employer Identification Number (EIN)
Tax period, see IRM 3.11.16.7, Tax Period
CCC "G," see Exception above
Received date, see IRM 3.11.16.8, Received Date
Signature, see IRM 3.11.16.11.7, Signature
Note: No further editing is required.
IRC 847 Deduction
(1) The instructions in this subsection only apply to Tax Period 201812 and prior. For Tax Period 201901 and later, no action is needed.
Note: IRC 847 applies to taxable years beginning before January 1, 2018. Section 13516 of the Tax Cuts and Jobs Act (PL 115-97) repealed IRC 847. IRC 847 required certain insurance companies to make SETP in the amount equal to the tax benefit derived from the added deduction permitted under IRC 847 Deduction. Following the repeal of IRC 847, the entire amount of existing SETP is considered for the first tax year beginning after 2017, see IRM 21.7.4.4.4.11.4.2.
(2) If Special Estimated Tax Payments (SETP) is claimed for Tax Period 201812 and prior, follow the instructions in the paragraphs below.
(3) The SETP payment (or application of prior SETP payment) was reported on the following lines:
Form | Line Number |
|---|---|
Form 1120 | Schedule J, Part III, Line 14 (Part II, Line 13 for 2017 -2011) found by a notation in the margin or on the line referring to a "Form 8816" and/or SETP, and/or attached schedule, and/or Form 8816, Special Loss Discount Account and Special Estimated Tax Payments for Insurance Companies is attached. |
Form 1120-L | Page 1, Lines 28b for 2018 (Lines 29b and/or 29d for 2017 and prior) and/or Form 8816 is attached. |
Form 1120-PC | Page 1, Lines 15b for 2018 (Lines 14b and/or 14d for 2017 and prior) and/or Form 8816 is attached. |
(4) If SETP are claimed, edit Action Code "342" and enter CCC "6" on the return. Give the return to the lead.
(5) C&E Lead or another assigned individual will do the following:
Edit an action trail such as "Faxed to LB&I Exam 01-01-2018" (01-01-2018 would be the date faxed).
Fax pages 1, 2, and 3 of the Form 1120, Form 1120-PC, and/or Form 1120-L and all Form 8816 to LB&I Exam at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ with your contact information (name, phone number and e-mail address). For a consolidated Form 1120, also fax the subsidiary return or attachment on which the SETP are identified. If the fax does not work, contact LB&I Exam directly at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or e-mail ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Set the return aside in a location designated for Section 847 returns with a copy of fax acknowledgement or other record of correspondence with LB&I Exam. Check the bin daily to ensure returns have been properly communicated to LB&I Exam.
LB&I Exam will respond within 72 hours by e-mailing a Form 3809, Miscellaneous Adjustment Voucher, to the person who provided the fax. Print the e-mailed Form 3809 on green paper and attach to the back of the return. If LB&I responds back stating the return is not a true Section 847 case, print that e-mail on green paper and attach to the back of the return.
Place the return back in the processing pipeline.
Prompt Assessment (Form 4810) / Prompt Determination
(1) A "Prompt Assessment" is requested either on Form 4810, Request for Prompt Assessment Under Internal Revenue Code Section 6501(d), or on a request containing the same information. A Prompt Determination is requested under the U.S. Bankruptcy Code (specifically 11 U.S.C. § 505(b)(2))..
If | And | Then |
|---|---|---|
A "Prompt Assessment" or "Prompt Determination" request is not attached to a tax return, |
| Send the "Prompt Assessment/Prompt Determination" request to Examination. |
A "Prompt Assessment" or "Prompt Determination" request is attached to a tax return, | A TC "150" has not posted for that return, | Process the return and send the "Prompt Assessment/Prompt Determination" request to Examination with a copy of the tax return. |
A "Prompt Assessment" or "Prompt Determination" request is attached to a tax return, | A TC "150" has posted for that return, | Route the return and the "Prompt Assessment/Prompt Determination" request to Examination. Note: If the return is numbered, edit Action Code "370" and continue processing. |
♦Refund Returns (45-Day Jeopardy and High Dollar Refunds)♦
(1) Document Perfection identifies refunds in jeopardy and requests manual refunds.
Note: Expeditious processing of refund returns is critical if the 45-day period is about to expire.
If | Then |
|---|---|
A refund tax return is batched in a non-refund batch, |
Note: Follow the instructions below when the processing date is more than 20 days after the received date or the return due date OR the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ |
The processing date is more than 20 days after the received date or the return due date (whichever is later) and the refund amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: "Refund" in this instruction means only the amount requested to be refunded to the taxpayer, not overpayments transferred to other periods. |
|
The refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Note: "Refund" in this instruction means only the amount requested to be refunded to the taxpayer, not overpayments transferred to other periods. |
|
The TS Submission Processing TAS Liaison walks a return through C&E, | In addition to normal editing, edit the following:
|
Examination of Tax Data
(1) This subsection addresses general tax data editing procedures.
Non-Standard or Prior Year Format
(1) All prior year returns must be reformatted to current year format. See prior year conversion exhibits and the Job Aids for specific year coding.
(2) If the return is on other than current form format (either a prior year or non-standard form) and the transcription lines cannot be numbered to agree with the current year return:
Edit all available transcribed tax data items to the tax data portion of a blank current year form.
Place a large "X" across the tax data entries of the prior year (or non-standard) form.
Staple the forms together, attaching the dummied form (current format) on top so that Data can enter the entity data from the prior year (or non-standard) form.
Conversion of Form 1120-S to Form 1120
(1) If a taxpayer filed Form 1120-S and the Entity Control Unpostable Unit has determined the Taxpayer does not have a valid Small Business Election on file (Form 2553), Rejects will convert Form 1120-S to a Form 1120. No action is required for Document Perfection. Do not detach Form 1120-S.
Caution: If a Form 1120 converted from Form 1120-S is received and the Form 13596, Reprocessing Returns, is attached for reprocessing, see IRM 3.11.16.3.8.2, Form 13596 - Reprocessing Returns, for more information.
Significant Entries
(1) Reference is made throughout this IRM to "significant entries." A significant entry is defined as any amount other than zero.
Note: Blank, Dash, "None," "N/A," or zero are not significant entries unless otherwise specified.
Incomplete Return
(1) When the return serves only as a transmittal for statements, schedules, and other attachments, or is otherwise incomplete, analyze the supporting documents and edit the missing entries on the form itself.
(2) Examine attachments and edit the information to correct transcription lines of both the income and deduction sections. This does not apply to Consolidated - Mixed Component returns.
Exception: See IRM 3.11.16.5.5, Minimum Edit.
Edit the income section if Line 11 is the only entry in the income section.
Edit the deduction section if Line 27 is the only entry in the deduction section.
Edit the income and/or deduction section if blank and there is a sign on the income and/or deduction items are included on an attachment (e.g., a notation such as "See attached," "See Schedule F," "Statement attached" ).
Note: When a doubt exists concerning placement of an income or deduction item because of terminology used by taxpayer, edit income items as "other income" deduction items as "other deductions."
(3) Secured Delinquent Returns are returns secured by compliance personnel. If information is missing from one of these returns, correspond using an approved Correspondence Action Sheet.
Minimum Edit
(1) If Form 1120 does not require Balance Sheet inspection (see IRM 3.11.16.11.46, Schedule L, Balance Sheet, instructions), perform the least time-consuming edit on the income section and the deductions section through Total Deductions.
If only totals are shown in Total Income and/or Total Deductions, edit Total Income to the Other Income line and/or edit Total Deductions to the Other Deductions line.
If there is an entry on Form 1120, Page 1, Line 29b, enter Form 1120, Page 1, Line 4 (Dividends), from Schedule C, Page 2, Line 23a (Line 19 for 2017 and prior). Subtract the Line 4 (Dividends) amount from Line 11 (Total Income) to determine the difference. Enter the difference on Line 10 (Other Income).
Exception: On a "Final" Form 1120, analyze and edit to right lines any entry on the attachments for Income and Deductions items.
Note: (Form 1120 Only) Form 1120 filed by a large corporation (defined as a corporation with $10 million or more of assets in Box D), where "see attached" is notated in the Income Section and the Deduction Section, must be brought to the attention of your supervisor. Taxpayer correspondence must be initiated on these returns. Suggested language for the correspondence is as follows:
"Complete every applicable entry space on Form 1120. Do not write "see attached" instead of completing the entry spaces. If you need more space on the forms or schedules, attach separate sheets, using the same size and format as the printed forms. Be sure to put the corporation's name and EIN on each sheet."
(2) Initiate correspondence using Letter 118C, Corporate Return Incomplete for Processing: Form 1120, Form 1120 Series, Form 1120-S if Form 1120, (Form 1120 Only), is filed by a large corporation (defined as a corporation with $10 million or more of assets in Box D), and "see attached" is notated in the Income Section and the Deduction Section.
Editing Dollars and Cents
(1) Document Perfection is not required to edit a vertical line, 00, dash, or decimal point to indicate dollars and cents.
If | Then |
|---|---|
| No editing is required. |
Negative Entries
(1) Edit negative entries as follows:
If | Then |
|---|---|
Brackets are pre-printed on the form, | No editing is required. |
The taxpayer shows a negative amount with brackets or a minus (-) sign, | No editing is required. |
Editing a negative amount to a transcription line (e.g., computing a line entry, entering a missing entry), | Bracket the negative amount. |
♦Entity Perfection - General♦
(1) The entity of a tax return shows the taxpayer on the Business Master File. The entity area of the return has the following:
Employer Identification Number (EIN)
Name
"In-care-of" Name
Address
♦Bankruptcy♦
(1) If any of the Form 1120 series forms indicates bankruptcy (e.g., shows RECEIVER, TRUSTEE, or DEBTOR IN POSSESSION) in the entity area or on an attachment, route to Entity Control. Follow local procedures using Form 13934, Entity Document/C&E Merge Transmittal.
Exception: Do not route Amended returns to Entity Control.
(2) Completely edit the return except the name control prior to routing to Entity Control.
Exception: Do not route to Entity Control if there is an indication Entity has already edited the return, usually orange/purple editing of the EIN and name control.
♦Entity Perfection - Employer Identification Number (EIN)♦
(1) The EIN is a nine-digit number (XX-XXXXXXX) assigned to identify the taxpayer.
(2) The EIN is located in the upper right area of the form ("Employer Identification Number" box).
(3) Determine the EIN as follows:
Remove return from batch.
Route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal, for EIN assignment.
Edit Action Code "320" on
Form 1120
Form 1120-C
Form 1120-F
Form 1120-H
Form 1120-L
Form 1120-PC
Form 1120-REIT
Form 1120-RIC
All other returns edit CCC "U."
Leave return in batch.
Illegible;
Missing;
Other than 9 digits;
All zeros; or,
All nines
Circle all illegible EINs, zeros, or nines.
Research IDRS.
If found, edit to the proper location.
If not found, route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.
Illegible;
Missing;
Other than 9 digits;
All zeros; or,
All nines
Circle all illegible EINs, zeros, or nines.
Edit Action Code "320" on
Form 1120
Form 1120-C
Form 1120-F
Form 1120-H
Form 1120-L
Form 1120-PC
Form 1120-REIT
Form 1120-RIC
All other returns edit CCC "U."
Leave return in batch.
Research IDRS.
If found, edit to the proper location.
If not found, route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.
Edit Action Code "320" on
Form 1120
Form 1120-C
Form 1120-F
Form 1120-H
Form 1120-L
Form 1120-PC,
Form 1120-REIT
Form 1120-RIC
All other returns edit CCC "U."
Leave return in batch.
If | And | Then |
|---|---|---|
The EIN is missing, | The correct EIN can be determined from the attachments and/or schedules, | Edit the EIN to the proper location. |
The EIN is either a PTIN or Individual Taxpayer Identification Number (ITIN), or | Unnumbered, | |
The EIN is either a PTIN or Individual Taxpayer Identification Number (ITIN), or | Numbered, | |
The EIN has any of the following conditions and can’t be determined from attachments and/or schedules: | Unnumbered, | |
The EIN has any of the following conditions and can’t be determined from attachments and/or schedules: | Numbered, | |
"PENDING," "APPLIED FOR," etc., is shown in the EIN area, | Unnumbered, | |
"PENDING," "APPLIED FOR," etc., is shown in the EIN area, | Numbered, |
♦Entity Perfection - Name Control♦
(1) The Name Control consists of four characters or less.
Valid characters are alpha, numeric, ampersand (&), hyphen (-), and blank. However, blanks are only valid in the last three positions.
Disregard the word "THE" in the Name Control only when followed by more than one word.
(2) See Job Aid Document 7071A, Name Control Job Aid - For Use Outside the Entity Area, to determine the Name Control.
(3) If Box E(3) "Name Change," Form 1120 is checked, route the return to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.
Form 1120-C - Box D(3)
Form 1120-F - Box "Name or address change"
Form 1120-FSC - Box F(2)
Form 1120-H - Box (2)
Form 1120-L - Box E(2)
Form 1120-ND - Box D(2)
Form 1120-PC - Box E(2)
Form 1120-REIT - Box F(2)
Form 1120-RIC - Box E(2)
Form 1120-SF - Box (2)
(4) Edit the Name Control as follows:
Research IDRS.
If found, edit to the proper location.
If not found, route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal.
Edit Action Code "352" (Name Research) on:
Form 1120
Form 1120-C
Form 1120-F
Form 1120-H
Form 1120-L
Form 1120-PC
Form 1120-REIT
Form 1120-RIC
All other returns, edit CCC "U." Attach Form 4227 and indicate "Name Research" in the "Other (explain)" area.
Leave return in batch.
If | And | Then |
|---|---|---|
Able to determine the Name Control, |
| Underline the Name Control. |
Unable to determine the Name Control, | Unnumbered, | |
Unable to determine the Name Control, | Numbered, |
♦Entity Perfection - "In-Care-Of" Name♦
(1) An "in-care-of" name can be identified by the words "in care of" or the symbols "c/o" or "%" (percent).
(2) Ensure the "in-care-of" name is in the proper location.
If | Then |
|---|---|
The "in-care-of" name is located on the street address line preceding the street address, | Do not edit. |
The "in-care-of" name is located above the first name line or below the street address, | Arrow the in-care-of name so it appears below the first name line and above the street address. |
The "in-care-of" name is shown on an attachment, | Edit the "in-care-of" name above the street address beginning with the "%" or "c/o" in the first position. |
The street address for the "in-care-of" name is different from the street address of the corporation, |
|
Note: Always circle the in-care-of symbol (% or c/o) if it is present with an address. Do not use the ampersand (&) and the percent sign (%) when editing address information.
(3) Determine a change in the in-care-of name by any of the following:
A check mark in the "Name change" box, or
A check mark in the "Address change" box, or
Taxpayer edits or added to the "in-care-of" name (e.g., original "in-care-of" name crossed out, new name added).
Edit the "in-care-of" name as shown above.
Continue editing the return.
Edit the "in-care-of" name as shown above.
Correct the address, see IRM 3.11.16.6.5, Entity Perfection - Domestic Addresses.
Continue editing the return.
If | Then |
|---|---|
An "in-care-of" name is changed but there is no sign of an address change, | |
An "in-care-of" name is present and the "Address change" box is checked (or there is a sign of an address change), |
♦Entity Perfection - Domestic Addresses♦
(1) Perfect the address when the mailing address (Street or P.O. Box) is not easily identified.
Exception: Do not perfect the address on amended returns (CCC "G").
(2) A business can have two addresses. One is the mailing address and the other is the location address or physical location of the business.
Note: BMF ISRP is not programmed for a mailing address and a location address. A TC 014 must be input into IDRS to capture both a location and a mailing address.
(3) Perfect the address as follows:
If | And | Then |
|---|---|---|
An attachment shows the address was changed, |
| No perfection is necessary. ISRP will enter the complete address. |
There is a sign on an attachment that the address has been changed, |
| Edit the new address in the entity section of the return. |
Form 8822, Address Change Requested, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, | All apply:
| Take no action. |
Form 8822, Address Change Requested, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, | Any applies:
| Detach Form 8822 or Form 8822-B and route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal. |
Both a P.O. Box and street address are shown, see Figure 3.11.16-3, |
|
|
Two street addresses are shown, |
|
|
One street address is shown, | The taxpayer changes the address to a P.O. Box, |
|
The city and state are not shown on the return, but are shown on an attachment, |
| Edit the city and state in the entity section of the tax return. |
The ZIP Code is missing or illegible, | Is not available from the return or attachments, | See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, to determine the ZIP Code. Note: Edit the 3 digits followed by "01" of the first ZIP Code listed for the applicable state (e.g., "99501" for Alaska). |
Only the first three digits of the ZIP Code can be determined, |
| Edit "01" for the fourth and fifth digits. |
The "Change of Address" box is checked, | An "in-care-of" name is present, |
|
The National Change of Address (NCOA) label is present, |
| Underline the Name Control. |
It is necessary to edit the street address, |
| See Document 7475, State and Address Abbreviations, Major City Codes, ZIP Codes, and Countries. |
The address contains information other than a street address or P.O. Box, |
| Do not perfect. ISRP will enter the complete address. |
Note: Always circle the "in-care-of" symbol ("c/o" or "%") if it is present with an address. Do not use the ampersand (&) and the percent symbol (%) when editing address information.
(4) The U.S. Postal Service established new address requirements for APO/DPO/FPO addresses. If the old address appears, convert to the new state code abbreviation based on the ZIP Code (e.g., APO New York, New York 091XX would be converted to APO AE 091XX). APO/DPO/FPO addresses are considered domestic addresses. Refer to Conversion Chart below:
ZIP Code | State Code |
|---|---|
340 | AA |
090-098 | AE |
962-966 | AP |
♦Entity Perfection - Foreign Address (OSPC)♦
(1) A foreign (international) address is any address that is not in the 50 states or the District of Columbia.
(2) Consider returns with APO, DPO, and FPO addresses as considered domestic addresses, see IRM 3.11.16.6.5, Entity Perfection - Domestic Addresses.
(3) Route returns with a foreign address to the Ogden Submission Processing Center (OSPC) for processing. Prepare Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform the taxpayer the IRS sent the return to Ogden.
(4) Consider returns with addresses in the following U.S. Possessions/Territories as foreign for processing purposes. Edit the same way as domestic addresses.
Edit a two-character alpha code for the possession name.
A ZIP code must be present for U.S. Possessions/Territories. Edit the right ZIP Code if one is not provided, see Exhibit 3.11.16-5, U.S. Possessions ZIP Codes.
U.S. Possession / Territory | Abbreviation |
|---|---|
American Samoa | AS |
Federated States of Micronesia | FM |
Guam | GU |
Marshall Islands | MH |
Northern Mariana Islands | MP |
Palau | PW |
Puerto Rico | PR |
U.S. Virgin Islands (U.S.) | VI |
(5) All other foreign addresses are edited the same as a domestic address with the following exceptions:
Ensure the foreign country is the last entry in the address.
Circle the foreign country and edit the country code preceded by a "/" and followed by "/$" (e.g., "/GM/$" is edited for Germany). For official foreign country codes, see Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes, and Countries.
Edit a unique country code for returns filed with an address in Canada, see IRM 3.11.16.6.6.1 Country Code - Canada.
If the foreign address is from Australia, Brazil, Cuba, Italy, Mexico, or The Netherlands, check if the address has a province, state, or territory.
Note: There may be other countries with provinces, states, and territories not listed above, see Coding and Editing BMF Tax Returns, Foreign Addresses Job Aid (Number 2324-002) for more information.
Circle the province, state, or territory name.
Edit the right abbreviation, see Exhibit 3.11.16-6, Province, State and Territory Abbreviations.
Note: Coding and Editing BMF Tax Returns, Foreign Addresses Job Aid (Number 2324-002) provides examples for editing foreign addresses.
If | Then |
|---|---|
A province, state, or territory is present, | |
A province, state, or territory is shown in abbreviated format, | Continue editing the return. |
A province, state, or territory name is not present, | Continue editing the return. |
(6) 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.
♦Country Code - Canada♦
(1) To assist Compliance with workload assignment, returns filed with an address in Canada will be edited using a unique country code based on the province.
If | Then |
|---|---|
The foreign address has a Canadian province/territory name, abbreviation, or postal code beginning letter shown in the table below, |
|
The foreign address does not have a Canadian province/territory name shown on the table below, |
|
Canadian Province / Territory | Province Abbreviation | Postal Code beginning | Country Code |
|---|---|---|---|
Alberta | AB | T | XA |
British Columbia | BC | V | XB |
Manitoba | MB | R | XM |
New Brunswick | NB | E | XN |
Newfoundland and Labrador | NL | A | XL |
Northwest Territories | NT | X | XT |
Nova Scotia | NS | B | XS |
Nunavut | NU | X | XV |
Ontario | ON | K, L, M, N, or P | XO |
Prince Edward Island | PE | C | XP |
Quebec | QC | G, H, or J | XQ |
Saskatchewan | SK | S | XW |
Yukon | YT | Y | XY |
(2) The rest of the foreign address is edited using procedures in IRM 3.11.16.6.6, Entity Perfection - Foreign Address (OSPC).
Tax Period
(1) This subsection addresses the editing of the period for which the tax return is being filed.
Tax Period - Ending
(1) All returns must have a Tax Period.
(2) Edit the Tax Period to the right of the form title in YYMM format.
If | Then |
|---|---|
The return is for the current processing calendar year (e.g., 202412), | Do not edit the Tax Period. |
The return is for a prior year, | Edit the Tax Period. |
The taxpayer has notated a Tax Period other than the preprinted year on the return, | Edit the Tax Period based on the taxpayer’s indication, per paragraph (3). |
The Tax Period is missing, incomplete, or illegible, |
|
(3) A Tax Period must end on the last day of a month. (Ignore a minor discrepancy such as October 30 instead of October 31.) The exceptions are a 52/53 week filer, and final and/or short period returns. Correspond using Letter 319C, Return Covers Other Than 12-Month Accounting Period, if the exceptions do not apply. The table below shows examples of Tax Period.
Tax Period Ends | Tax Period |
|---|---|
Oct. 3, 2024 (52-53 week document) | 2409 |
Oct. 3, 2024 (Final short period return) | 2410 |
Oct. 25, 2024 (52-53 week document) | 2410 |
Oct. 25, 2024 (Final short period return) | 2410 |
Nov. 30, 2024 | 2411 |
Dec. 31, 202 | 2412 (No editing required) |
Feb. 28, 2025 | 2502 |
(4) Tax periods reported under the 52-53 week rule may end not more than six days before, and not more than three days after, the end of a month. In the edit format, use the numeric designation of the month, the last day of which is closest to the actual ending date.
If | Then |
|---|---|
The Tax Period ending date is not more than three days after the beginning of the month, | Edit the previous month. |
The tax ending date is not more than six days before the end of the month, | Edit the month shown on the return, |
(5) If the Tax Period is for more than 12 months or 53 weeks, correspond.
(6) A "Final" short period return ends on the date the taxpayer went out of business. This can be any day of the month. Use the numeric designation of the calendar month in which it ends. If the taxpayer has not shown in which month the business ended, edit the Tax Period to be one month before the received date.
(7) Edit the Tax Period Beginning on a "Final" return in MMDDYY format, see IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
(8) On a "Final" return if the Tax Period month and year is equal to or later than the received dates month and year (future return), edit the Tax Period to be one month before the received date, see Figure 3.11.16-4.
Note: If a prepaid credit is claimed on a short period "Final" return, see IRM 3.11.16.7.9, Short Period Returns - With Prepaid Credits.
Form 1120, Page 3, Schedule J, Line 13, 14 or 17 (Lines 12, 13 or 16 for 2017-2011)
(9) On a "Final" return, if the received date is after the short period due date but on or before the regular full Tax Period due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, edit CCCs "R" and "F."
Note: Also edit CCC "D" if the return is a Balance Due.
(10) The separate short period return of a corporation that joins a "consolidated" group generally ends on the day that the corporation joins the consolidated group, and its items are included on the consolidated group’s return beginning on the following day. See 26 CFR 1.1502-76(b)(1)(ii)(A).
(11) Check all Tax Period for the Statute of Limitation (two years and nine months from the normal due date of the return), see IRM 3.11.16.3.7, Statute Returns.
Tax Period Beginning - Initial, Final, or Short Period
(1) The Tax Period Beginning has been added to Form 1120, Form 1120-F, Form 1120-FSC, Form 1120-H, Form 1120-L, Form 1120-ND, Form 1120-PC, Form 1120-REIT, Form 1120-RIC and Form 1120-SF.
(2) Edit the Tax Period Beginning to the left of the Form 1120 title area in Month Month Day Day Year Year (MMDDYY) format on an Initial, Final, or Short Period return as follows: See Figure 3.11.16-5 below.
If | Then |
|---|---|
The Tax Period Beginning is present, | Edit the Tax Period Beginning (MMDDYY). |
The Day is not present in the Tax Period Beginning, | Edit "01" as the day (MM01YY). |
The Tax Period Beginning is not present, | Editing is not required. |
Early Filed Returns - Full Year and Short Period
(1) Never send an early filed return back to the taxpayer.
(2) If the month of the Tax Period is the same or after the month of the received date, determine how early the return has been filed:
If | Then |
|---|---|
|
|
The received date is before the TPE by more than four months (e.g., the received date is April but the TPE is August or later), |
|
Note: Action Codes are only applicable to Form 1120, Form 1120-C, Form 1120-F, Form 1120-H, Form 1120-L, Form 1120-PC, Form 1120-REIT, and Form 1120-RIC. Use CCC "U" for other returns in the 1120 series.
Short Period - Editing Proof of Entitlement
(1) A Short Period Return is one which covers a period of less than 12 months or 52-53 weeks.
If the Short Period Return is marked "Final," see IRM 3.11.16.7.1, Tax Period - Ending.
If the Short Period Return is marked "initial," "first return," "new corporation," etc., or meets any of the identifying conditions for "Initial Return Code," see IRM 3.11.16.9.4, Initial Return Code.
Process all other Short Period Returns as a "Change of Accounting Period." In such cases, proof of entitlement to the change is required.
Reminder: Edit the Tax Period Beginning in MMDDYY format on Short Period Returns per IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
(2) Use the table below to find and edit proof of entitlement.
Note: Research of IDRS using Command Code BMFOLE is for the following chart.
If | And | Then |
|---|---|---|
A statement the corporation is changing the Tax Period under:
| Command Code BMFOLE shows a TC 053 or TC 054, | Continue processing Note: No CCC "Y" is needed. Note: Audit Code "3" is also applicable for Form 1120-F, Form 1120-FSC, and Form 1120-SF. |
A statement the corporation is changing the Tax Period under:
| Command Code BMFOLE shows a TC 059, | The return is unprocessable. Follow the instructions in IRM 3.11.16.7.6, Short Period Returns - Editing a Disapproved Application (Form 1128). |
A statement the corporation is:
|
| Do all the following:
|
26 CFR 1.1502-76 - returns can be identified by a notation referencing "Section 1.1502-76," "Changing the Tax Period to get in step with parent," "Affiliation with a Consolidated Group," or a similar statement on the return or attachment, |
| See IRM 3.11.16.7.4.1, Short Period Returns - 26 CFR 1.1502-76. |
Notation referring to:
|
| Edit CCC "Y." Do not correspond. |
Form 1128 attached, | Command Code BMFOLE shows a TC 053 or TC 054, | Continue processing Note: No CCC "Y" is needed. |
Form 1128 attached, | Command Code BMFOLE shows a TC 059, | The return is unprocessable. Follow the instructions in IRM 3.11.16.7.6, Short Period Returns - Editing a Disapproved Application (Form 1128). |
Form 1128 attached, | Command Code BMFOLE does not show a TC 053, 054 or 059, | See IRM 3.11.16.7.7, Short Period Returns - Editing Form 1128 With no Indication of Approval or Disapproval. |
Notation on Form 1120 or Form 1120-F indicates: "Section 444 Election Terminated," |
| Edit CCC "Y" if the tax return is for a Personal Service Corporation
|
Short Period Returns - 26 CFR 1.1502-76
(1) 26 CFR 1.1502-76 applies to returns filed by a corporation which becomes a member of a consolidated group during the tax year. These returns can identified by a notation referencing "Section 1.1502-76," "Changing the Tax Period to get in step with parent," "Affiliation with a Consolidated Group," or a similar statement on the return or attachment.
Note: It is important to recognize these returns and follow the procedures outlined in this subsection to ensure the correct penalty and interest are charged, if applicable.
(2) The short period return under 26 CFR 1.1502-76 is not due until the normal full 12-month due date of the short period return or the due date of the consolidated parent return, whichever is earlier.
(3) Always edit CCC "Y" on these returns.
(4) The computer will calculate the due date of the return according to the Tax Period of the short period return. Since the actual due date of the return under 26 SFR 1.502-76 is later than the short period return due date, do the following:
If | And | Then |
|---|---|---|
The received date is later than the short period return due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Before the consolidated return due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: If the consolidated return due date is unknown, use the normal full 12-month due date of the short period return. | Edit CCC "R." |
Reminder: Edit the Tax Period Beginning in MMDDYY format on Short Period Returns per IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
Short Period Returns - Missing Proof of Entitlement
(1) If proof of entitlement is missing or the taxpayer states on the return or an attachment that the corporation has filed an application but has not received a response, research IDRS using Command Code BMFOLE for approval or disapproval information and proceed as follows:
If | Then |
|---|---|
BMFOLE shows a TC 053, 054, or 055, | Continue processing. Note: No CCC "Y" is needed. |
BMFOLE shows a TC 058 or 059, | The return is unprocessable, see IRM 3.11.16.7.6, Short Period Returns - Editing a Disapproved Application (Form 1128). |
BMFOLE does not show a TC 053, 054, 055, 058, or 059, | Correspond using Letter 319C, Return Covers Other Than 12-Month Accounting Period. |
Reminder: Edit the Tax Period Beginning in MMDDYY format on Short Period Returns per IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
Short Period Returns - Editing a Disapproved Application (Form 1128)
(1) If Form 1128 is disapproved, the return is considered unprocessable:
Edit Action Code "211" or "215" (International Correspondence) or CCC "U" and correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
In the correspondence, instruct the taxpayer to file a return for the next regular full period due. Request a disposition of any remittance paid with the return or other credits which have posted to the short period module.
Reminder: Edit the Tax Period Beginning in MMDDYY format on Short Period Returns per IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
Short Period Returns - Editing Form 1128 with No Indication of Approval or Disapproval
(1) When a Form 1128 with no indication of approval or disapproval is attached and no proof of entitlement is present, research IDRS using Command Code BMFOLE for approval or disapproval and proceed as follows:
If | Then |
|---|---|
BMFOLE shows a TC 053 or 054, | Continue processing. Note: No CCC “Y” is needed. |
BMFOLE shows a TC 059, | The return is unprocessable. |
BMFOLE does not show TC 053, 054, or 059, | Take the actions in (2) below. |
Reminder: Edit the Tax Period Beginning in MMDDYY format on Short Period Returns per IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
(2) A Form 1128 with neither approval or disapproval, discontinue processing Form 1120. Route Form 1120 and Form 1128 to Entity as directed in the paragraphs below.
If Form 1128 is attached to a numbered return, enter Action Code "320" for Form 1120, Form 1120-C, Form 1120-F, Form 1120-H, Form 1120-L, Form 1120-PC, Form 1120-REIT, and Form 1120-RIC. Edit CCC "U" for all other returns. Attach Form 4227, Intra-SC Reject or Routing Slip, and check the box for Entity Control box. Edit the Form 1120 received date on Form 1128. (Do not detach Form 1128.) Leave the return in the batch and continue processing, see Figure 3.11.16-8.
If Form 1128 is attached to an unnumbered return, edit the Form 1120 received date on Form 1128, attach Form 4227 and route the return to Entity Control. (Do not detach Form 1128.)
Entity will process the Form 1128 and route the return back to C&E with a Form 4227 attached. The Form 4227 will indicate if the Form 1128 is approved, denied or if the Form 1128 was returned to the taxpayer and the words "Process Return" or "Let Unpost."
Short Period Returns - Editing Returning Correspondence
(1) If the taxpayer provides acceptable proof, follow instructions in IRM 3.11.16.7.4, Short Period - Editing Proof of Entitlement.
(2) If the taxpayer fails to reply, or does not provide Tax Period approval, enter CCC "3."
Short Period Returns - With Prepaid Credits
(1) Route to Accounting for possible adjustment action any return meeting both conditions below.
A prepaid credit is claimed.
The return is a short period (an initial return, a final return or one with a change of accounting period).
Form Type | Line Numbers |
|---|---|
Form 1120 | Page 3, Schedule J, Line 13, 14, or 17 |
Form 1120-C | Line 30a, 30b, or 30d |
Form 1120-F | Line 5a, 5b, or 5e |
Form 1120-FSC | Line 2a, 2b, or 2e |
Form 1120-H | Line 23a, 23b, 23c |
Form 1120-L | Line 27a, 27b, or 27d |
Form 1120-ND | Line 14a, 14b, or 14e |
Form 1120-PC | Line 16a, 16b, or 16d |
Form 1120-REIT | Line 25a, 25b, or 25d |
Form 1120-RIC | Line 28a, 28b, or 28d |
Form 1120-SF | Line 16a, 16b, or 16e |
(2) Take the following action when routing these returns to Accounting, see Figure 3.11.16-9.
Enter Action Code "342" on Form 1120, Form 1120-C, Form 1120-F, Form 1120-H, Form 1120-L, Form 1120-PC, Form 1120-REIT, and Form 1120-RIC. Edit CCC "U" on all other returns. Attach Form 4227, Intra-SC Reject or Routing Slip check the "Accounting" box and notate "Short period return with ES Credits."
Continue normal processing.
If the return shows a refund, see IRM 3.11.16.4, Refund Returns (45-Day Jeopardy and High Dollar Refunds).
Reminder: Edit the Tax Period Beginning in MMDDYY format on Short Period Returns per IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
♦Received Date♦
(1) The date a document is received in the Campus or IRS Office is the date stamped as the "IRS Received Date."
(2) All Form 1120 series returns require an IRS Received Date.
If | Then |
|---|---|
The return is received within ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the legal or the extended due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, | The return is considered timely. |
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 legal holiday. |
The IRS received date stamp ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the legal or extended due date and the postmark or shipment date is on or before the legal or extended due date, | Edit the received date to agree with the postmark or shipment date. Note: The postmark or shipment date includes returns delivered by:
Caution: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: For certified mail only - If a postmark is not present, look for a "USPS.com Track & Confirm" record attached to the return (should be in front of the envelope). Use the "Acceptance" date on the record to determine timeliness and follow normal editing procedures, see Exhibit 3.11.16-22, USPS.com Track and Confirm. |
(3) When a Form 1120 or Form 1120-F 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.
Note: Taxpayers are instructed to notate in red in the top margin of the return "REJECTED ELECTRONIC RETURN" to indicate the timely filed return cannot be filed electronically. The notation could be anywhere on the return and is not required, but they are required to attach a copy of the MeF rejection notification in order to show they qualify for an edited Received Date.
(4) 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:
Note: The taxpayer has 10 days to resubmit an electronically filed return after being rejected and 10 days to submit a paper return after the last rejection. The first transmission of any rejected return must have been filed before the due date of the relevant form for this rule to apply.
If | And | Then |
|---|---|---|
The postmark date is within 10 days of the date of the rejection, |
| Edit the IRS Received Date to be the date of the rejection. Example: Postmark date is 03-22-2025 and first rejection is 03-12-2025. Change Received Date to 031225. |
The postmark date is more than 10 days after the date of the rejection, |
| Leave the IRS Received Date as is. Example: Postmark date is 03-25-2025 and first rejection is 03-12-2025. Leave the Received Date as is. Exception: Change the Received Date to the postmark date if the postmark date makes the return timely. |
There are two rejections, | Within 10 days of one another and one is within 10 days of the postmark date, | Edit the IRS Received Date to be the date of the first rejection. Example: Postmark date is 03-22-2025, the second rejection is 03-12-2025. The first rejection is 03-09-2025. Change the Received Date to 030925. |
There are two rejections with the time between the first rejection and the second rejection greater than 10 days, | The second rejection is within 10 days of the postmark date, | Edit the IRS Received Date to be the date of the second rejection. Example: Postmark date is 03-22-2025, the second rejection is 03-12-2025. The first rejection is 03-01-2025. Change the Received Date to 031225. |
There are two rejections, | Not within 10 days of one another and second rejection not within 10 days of the postmark date, | Leave the IRS Received Date as is. Example: Postmark date is 03-25-2025, the second rejection is 03-12-2025. The first rejection is 03-01-2025. Leave the Received Date as is. Exception: Change the Received Date to the postmark date if the postmark date makes the return timely. |
(5) The received date may or may not be stamped on the face of the return.
(6) A valid received date stamp may consist of the following:
The word "Received"
Month (alpha or numeric)
Day (for example "1" or "01")
Year - four digits
"Area Office," Campus, "Field Office," "Taxpayer Assistance Center (TAC)" plus the City location or functional area within one of these sites (e.g., Compliance Services Collection Operations (CSCO), Examination, Image Control Team (ICT). Correspondence Imaging Inventory (CII), Accounts Management (AM)).
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 has a received date stamp from other than a Taxpayer Assistance Center (TAC), Lockbox, or IRS campus (Compliance, Accounts Management, or Submission Processing (SP)), circle out the invalid received date and edit the correct received date according to instructions below. For example, returns received by the Taxpayer Advocate Service (TAS) or the IRS Office of Chief Counsel are not properly filed and a received date by that office is not the "IRS Received Date."
(7) If the received date stamp is not present or the date is illegible or invalid, edit the received date in "MMDDYY" format in the middle of Page 1 of the tax return. Edit the 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. Rules for using the U.S. Postal Service Postmark (USPS) or Foreign Postmark date are as follows:
Look for the USPS.com Track & Confirm record that was attached to the return (should be in front of the envelope). Use the acceptance date on the record to determine timeliness and follow normal editing procedures, see Exhibit 3.11.16-22, USPS.com Track and Confirm.
If the "USPS.com Track & Confirm" record is not attached, take no action.
Service Center Automated Mail Processing System (SCAMPS) digital date.
Revenue Officer's Signature date.
Signature date. (Only if within current year.)
Julian control date minus 10 days.
Current date minus 10 days.
If | Then |
|---|---|
An envelope is not attached to the tax return, | 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, | |
An envelope has a USPS and private metered postmarks, | Always use the USPS postmark. |
An envelope has a foreign and private metered postmark, | Always use the foreign postmark. |
An envelope has two private metered postmarks, | Always use the latest private metered postmark. |
An envelope has only one private metered postmark, | Use the private metered postmark. |
(8) Edit the received date as follows.
Use the earliest IRS received date stamp.
Circle all other dates (handwritten or stamped) not needed for transcription.
If | Then |
|---|---|
A timely received date is the only received date stamped on the return, | Do not edit. |
Two or more dates are stamped on the return, | Note: Treat Received Dates that are circled out by another function as if they are not present. |
A Federal return is addressed to the IRS and delivered to a state agency, | Use the Postmark Date as the received date. |
A Federal return is addressed to a state agency, | Use the IRS date stamp as the received date. |
The only received date on the return is a Taxpayer Advocate Service (TAS) received date, | Edit the received date according to (6) instructions above. |
Reminder: Check any envelope attached to the return for remittance. If found, hand carry remittance to manager.
(9) If a return is faxed to another area of the IRS and then sent to Submission for processing, do not edit the Enterprise Electronic Fax (EEFax) Date as the IRS Received Date. Edit a Received Date according to normal procedures.
Caution: Do not use the EEFax date as the IRS received date.
Special Processing Codes
(1) This subsection addresses special processing codes.
Computer Condition Codes
(1) Computer Condition Codes (CCC) identify special conditions or computation for the computer. Computer Condition Codes post to the Master File.
(2) Computer Condition Codes are edited in the center of Lines 1 and 2 of the tax return.
CCC "B" - Schedule M-3
(1) Edit CCC "B" when the corporation checks the Schedule M-3 box on:
Form 1120, Page 1, Box A, 4.
Form 1120-C, Page 1, Box A, 2.
Form 1120-F, Page 1, Schedule M-3 Box.
Form 1120-L, Page 1, Box A, 3.
Form 1120-PC, Page 1, Box A, 3.
(2) Edit CCC "B" if Schedule M-3 is attached to Form 1120, Form 1120-C, Form 1120-L, Form 1120-F or Form 1120-PC.
Note: For Form 1120, edit Audit Code "8" if Schedule M-3 is attached, see IRM 3.11.16.10.1, Audit Codes.
CCC "C" - Qualified Derivatives Dealers (Form 1120-F) or Partner’s Additional Reporting Year Tax (Forms 1120-FSC, 1120-ND or 1120-SF)
(1) Edit CCC "C" when either is present:
Form 1120-F, Page 2, Question CC is answered "Yes," or both the "Yes" and "No" boxes are checked.
Form 8978, Partner’s Additional Reporting Year Tax, is attached to a Form 1120-FSC, Form 1120-ND, or Form 1120-SF and the Tax Period is 201712 and later.
♦CCC "D" - Reasonable Cause for Failing to Pay Timely♦
(1) Do not edit CCC "D" if the taxpayer requests abatement for "Failing to Pay Timely" when the return is submitted. Send Letter 1382C, Penalty Removal Request Incomplete, to inform the taxpayer of the proper procedure to follow to request penalty abatement when a penalty is assessed, see IRM 3.11.16.3.4.2(4), Issuing Correspondence.
(2) Edit CCC "D" when the return is stamped: "DO NOT ASSESS FAILURE TO PAY PENALTY."
Note: Do not enter CCC "D" if the return was prepared by the IRS under IRC 6020(b) and the return due date (without regard to extensions) is after July 30, 1996.
(3) Edit CCC "D" on a "Final," Balance Due return if the received date is after the short period due date but on or before the regular full Tax Period due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
(4) CCC "D" must be edited when a return has the special due date for "Co-Op" 1120 returns, see IRM 3.11.16.9.1.18, CCC "R" - Reasonable Cause for Failing to Timely File Return.
(5) Edit CCC "D" if a corporation attaches a statement showing the corporation qualifies for an automatic 2 or 3 - month extension under 26 CFR 1.6081-5 (or regulations under IRC 6081), or the statement or return indicates one of the following:
The foreign corporation maintains an office or place of business in the United States.
Note: It is not necessary to edit CCC "D"on Form 1120-F. The "Office or Place of Business Code" establishes the correct due date.
The domestic corporation transacts its business and keeps its books and records of account outside the United States and Puerto Rico, or
The domestic corporation's principal income is from sources within the possessions of the United States.
Exception: Do not edit CCC "D" if the balance due is paid after the 15th day of the 6th month following the Tax Period ending date.
(6) Do not edit CCC "D" when pre-computed penalty is shown on the return.
CCC "E" - Potential Identity Theft Filing (Form 1120)
(1) Effective January 1, 2017, Computer Condition Code "E" can be edited on Form 1120 (any year) by the BMF ID Theft Liaison to identify a potential identity theft filing if the return is claiming a refund of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If CCC "E" has been edited, no action is required by C&E.
Note: CCC "E" can be edited by other functions. C&E will continue to follow procedures in Paragraph (2).
(2) If a tax examiner in Submission Processing (SP) Code and Edit (C&E) finds a case with attachments or correspondence showing the taxpayer is a victim of ID Theft and the return is claiming a refund of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, provide the whole case to your senior/lead. Your senior/lead will expedite the case to the Planning and Analysis (P&A) staff for referral to one of the SP BMF ID Theft liaisons. The taxpayer must indicate that they are a victim of "ID Theft"; do not send cases that are subject to "Criminal Investigation" (CI), "Examination" (Exam) or "Fraud" review.
(3) If the SP ID Theft Liaison says the return is "ID Theft," the tax examiner can (upon request) edit CCC "E" on Form 1120 only.
CCC "F" - Final Return
(1) Edit CCC "F" when the "Final Return" box is checked or there is another indication the corporation is not liable for filing future returns. Notations may include (but are not limited to):
Final
Deceased
Out of Business
Liquidation
Exempt under IRC 501(c)(3)
Dissolved (e.g., Certificate of Dissolution attached)
Note: The presence of Form 966, Corporate Dissolution or Liquidation, is a sign of a possible dissolution. If Form 966 is attached, compare Tax Period in Box 7A to the Form 1120 being edited. If the same and the entity section of Form 966 is for the parent corporation, edit CCC "F."
Cites IRC 708(b)(1)(B)
Notates "Filed per Rev. Proc. 2003-84"
(2) Edit the Tax Period Beginning in MMDDYY format per IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
(3) If a prepaid credit* is claimed on a short period "Final" return, enter Action Code "342" or CCC "U" on the return, see IRM 3.11.16.7.9, Short Period Returns - With Prepaid Credits.
*(Form 1120, Page 3, Schedule J, Line 13, 14 or 17 (Lines 12, 13 or 16 for 2017-2011)
CCC "H" - Form 1042-S Attached to Form 1120-F
(1) Editing CCC "H" is no longer required.
CCC "I" - Form 6781, Gains and Losses from Section 1256 Contracts and Straddles
(1) CCC "I" is valid for Form 1120, Form 1120-C, Form 1120-F, Form 1120-L, and Form 1120-PC.
(2) Edit CCC "I" when Form 6781, Gains and Losses from Section 1256 Contracts and Straddles, is present.
Note: CCC "I" must be edited as a capital in block style to distinguish it from CCC "1."
CCC "J" - Section 965
(1) The instructions in this subsection only apply to Tax Period 201712 through 202012.
(2) Edit CCC "J" and Action Code "460" when any of the following conditions apply:
Form 965, Inclusion of Deferred Foreign Income Upon Transition to Participation Exemption System, is attached.
Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, is attached.
IRC 965 Transition Tax Statement (or similar statement), is attached (for TY2017).
A significant entry is present on any of the following forms and/or lines.
Note: A significant entry is defined as any amount other than zero.
Schedule C, Line 15
Schedule J, Line 12
Schedule J, Line 22
Page 1, Line 32
Schedule C, Line 15
Page 2, Line 29
Page 2, Line 30i
Page 1, Line 27
Page 1, Line 28i
Page 1, Line 14
Page 1, Line 15d
Page 2, Line 24
Page 2, Line 25h
Page 2, Line 28
Page 2, Line 29i
Form | Lines |
|---|---|
Form 1120 | |
Form 1120-C | |
Form 1120-L | |
Form 1120-PC | |
Form 1120-REIT | |
Form 1120-RIC |
(3) Do not issue correspondence on the return. ERS will correspond for any missing information, see IRM 3.11.16.2.12, Section 965 Returns.
CCC "K" - Form 8697
(1) Edit CCC "K" when Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts, is attached and shows a balance due in Part I, Line 10 and/or Part II, Line 11. The tax will be claimed on Form 1120, Schedule J, Line 9c. If Form 8697 is missing, correspond for the missing form. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
CCC "L" - Treaty Based Positions
(1) Edit CCC "L" when taxpayer writes "Section 6114 Election" on the return orForm 8833, Treaty-Based Return Position Disclosure Under IRC 6114 or 7701(b), is attached.
Note: Edit Audit Code "2" if Form 8833 is attached to Form 1120, Form 1120-L, Form 1120-PC, Form 1120-REIT, or Form 1120-RIC, see IRM 3.11.16.10.1, Audit Codes.
CCC "M" - Opportunity Zones
(1) Edit CCC "M" when:
Tax period ending is 201712 and later, and
Form 8949, Sales and Other Dispositions of Capital Assets, is attached and Form 8949, Column (f) has a code "Z" or "Y," see Figure 3.11.16-23.
Note: Tax Cuts and Jobs Act of 2017, P.L. 115-97 (H.R. 1), Section 13823, Opportunity Zones. Taxpayers who elect to defer gain on the sale of an asset by investing in an Opportunity Zone Fund will indicate that they are deferring the gain by entering code "Z" or "Y" in Column (f).
CCC "N" - Joint Committee Case
(1) Edit CCC "N," Joint Committee Case, when an unusual credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is claimed on:
Form 1120, Page 3, Schedule J, Lines 13 through 22 (Lines 12 through 19 for 2017-2011)
Form 1120-L, Page 6, Schedule K, Lines 5a through 5e
Form 1120-PC, Page 1, Lines 8a through 8e
Form 1120-FSC, Page 1, Lines 2a through 2g
Form 1120-SF, Page 1, Lines 16a through 16e
(2) Unusual credits are defined as follows:
Form 1120-PC, Line 15h states: By reciprocal for tax paid by Attorney in Fact under Section 835(d).
A credit claimed under IRC 1341 or a "Claim of Right" for refund of excessive prior year taxes.
Credits claimed under IRC 1383 in a later year for a refund of excessive prior year taxes.
(3) Usual credits are defined as follows:
A refundable credit normally found on Form 1120, Page 3, Schedule J, Lines 13 through 22 (Lines 12 through 19 for 2017-2011).
Form 7004 payment.
Estimated tax payments.
Credit from Regulated Investment Company.
Fuel Tax Credit present on Schedule J, Line 20b (Line 19b 2017-2011).
A refundable credit claimed with or without Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons, Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, or Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, are attached.
Note: Form 8288-A credit must be verified by OSPC Foreign Team.
CCC "O" - Module Freeze
(1) CCC "O" is entered when a Pre-Settlement Manual Refund will be made and a Form 3753, Form 5792, or Form 12857 is attached. Verify that the name control, EIN, and Tax Period on the return are the same as the data on the form.
Research to determine if "TC 840" (Manual Refund Transaction) has posted:
Enter Action Code "341" for:
Form 1120
Form 1120-C
Form 1120-F
Form 1120-H
Form 1120-L
Form 1120-PC
Form 1120-REIT
Form 1120-RIC
to issue Manual Refund.
All other returns edit CCC "U" and attach Form 4227, Intra-SC Reject or Routing Slip. Check the "Accounting" box on Form 4227.
If | Then |
|---|---|
"TC 840" has posted, | Edit CCC "O" and continue processing. |
"TC 840" has not posted, |
(2) Edit CCC "O" if there is an entry on:
Form 1120, Schedule J, Part II, Line 15 (Line 14 for 2017-2011).
Form 1120-C, Line 30c (Line 29c for 2017 and prior).
Form 1120-F, Line 5c.
Form 1120-FSC, Line 2c.
Form 1120-L, Line 27c (Line 28d for 2022 through 2018) (Line 29e for 2017 and prior).
Form 1120-ND, Line 14c.
Form 1120-PC, Line 15c (Line 15e for 2022 through 2018) (Line 14e for 2017 and prior).
Form 1120-REIT, Line 25c (Line 24c for 2017 and prior).
Form 1120-RIC, Line 28c (Line 29c for 2022 through 2018) (Line 28c for 2017 and prior).
Form 1120-SF, Line 16c.
(3) Edit CCC "O" when the Taxpayer Services (TS), Submission Processing (SP), Taxpayer Advocate Service (TAS) Liaison walks a return through C&E.
CCC "P" - Form 1118 - Foreign Tax Credit (Corporations)
(1) Edit CCC "P" when ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on any of the following lines:
Form 1120, Schedule J, Line 5a.
Form 1120-C, Schedule J, Line 5a.
Form 1120-REIT, Schedule J, Line 3a.
Form 1120-RIC, Schedule J, Line 3a.
♦CCC "R" - Reasonable Cause for Failing to File a Timely Return♦
(1) Do not edit CCC "R" when a reason is given for the delay in filing a return. Send Letter 1382C, Penalty Removal Request Incomplete, and continue editing the return, see IRM 3.11.16.3.4.2(4), Issuing Correspondence.
(2) Special Rules for Form 1120 Cooperatives: Certain non-farm Cooperative ("Co-Op") returns are filed on Form 1120 instead of the usual Cooperative Form 1120-C. These filers are entitled to a return due date on the 15th day of the ninth month following the close of the taxable year. Both CCC "R" and CCC "D" must be edited to returns identified as 1120 Cooperatives. Indication of this status is made by the taxpayer and may include the word "Cooperative" in the name, along with notations such as:
IRC 6072 (d) (2),
References to "Subchapter T" of the Internal Revenue Code ("IRC"),
IRC 1381-1388 referenced,
IRS Regulations Section 1.6072-2(d) referenced.
Note: If the word "Cooperative" is the only indicator, do not edit CCC "R." It must be used in addition to one or more of the other indicators named above.
(3) Edit CCC "R" if a corporation attaches a statement showing the corporation qualifies for an automatic 2 or 3 - month extension under 26 CFR 1.6081-5 (or regulations under IRC 6081), or the statement or return indicates one of the following:
The foreign corporation maintains an office or place of business in the United States.
Note: It is not necessary to edit CCC "R" on Form 1120-F. The "Office or Place of Business Code" establishes the correct due date.
The domestic corporation transacts its business and keeps its books and records of account outside the United States and Puerto Rico, or
The domestic corporation's principal income is from sources within the possessions of the United States.
Exception: Do not edit CCC "R" if the return is filed after the 15th day of the 6th month following the Tax Period ending date.
(4) Edit CCC "R" on a "Final" return if the received date is after the short period due date but on or before the regular full Tax Period due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
(5) Edit CCC "R" on the return when any of the following conditions are present:
There is a sign such as "DO NOT ASSESS FAILURE TO FILE PENALTY" on a secured return annotated with "599."
If an internal use form or routing slip is attached and indicates do not assess failure to file penalty.
Note: All "R" coded returns must have an IRS Received Date. If one is not present, edit the IRS Received Date in the middle of the return.
Note: CCC "R" cannot be used with CCC "4."
CCC "S" - Form 8883, Asset Allocation Statement
(1) Edit CCC "S" when Form 8883 is attached to:
Form 1120
Form 1120-C
Form 1120-F
Form 1120-FSC
Form 1120-L
Form 1120-PC
Form 1120-REIT
Form 1120-RIC
Reminder: Audit Code "3" will also apply when a Form 8883 is attached ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, see IRM 3.11.16.10.1, Audit Codes.
CCC "T" - Form 8886, Reportable Transaction Disclosure Statement
(1) Edit CCC "T" when Form 8886 is attached to:
Form 1120
Form 1120-C
Form 1120-F
Form 1120-FSC
Form 1120-H
Form 1120-L
Form 1120-ND
Form 1120-PC
Form 1120-REIT
Form 1120-RIC
Form 1120-SF
Note: Edit Audit Code "1" if Form 8886 is attached, see IRM 3.11.16.10.1, Audit Codes.
CCC "U" - Unprocessable Document
(1) Edit CCC "U" on any of the following forms with an unprocessable condition:
Form 1120-FSC
Form 1120-ND
Form 1120-SF
Note: Action Codes are used for unprocessable conditions on Form 1120, Form 1120-C, Form 1120-F, Form 1120-H, Form 1120-L, Form 1120-PC, Form 1120-REIT, and Form 1120-RIC.
CCC "V" - Qualifying Therapeutic Discovery Project Credit
(1) No editing required.
♦CCC "W" - Return Cleared by Statute Control♦
(1) Edit CCC "W" when Statute Control cleared the return, see IRM 3.11.16.3.7, Statute Returns.
CCC "X" - Refund/Settlement Freeze
(1) Edit CCC "X" when the taxpayer indicates on the tax return a request that any balance left over after paying tax and/or penalties to be applied to another account. Take the following action to route the request to Accounts Management.
Prepare Form 3465, Adjustment Request, and indicate in the "Routing" box "Adjustments."
Notate the requested action in the "Remarks" box.
Attach a photocopy of Page 1 of the tax return to Form 3465.
Reminder: Subtract the tax, penalties and interest amounts from the remittance amount if available.
CCC "Y" - Short Period Return for Change of Accounting Period
(1) CCC "Y" is edited for Change of Accounting Period. Enter only for short period returns due to change of accounting period (not due to initial or final filing), see IRM 3.11.16.7.4, Short Period - Editing Proof of Entitlement, through IRM 3.11.16.7.9, Short Period Returns - With Prepaid Credits.
(2) Edit the Tax Period Beginning in MMDDYY format per IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
(3) If a prepaid credit* is claimed on a short period return, enter Action Code "342" or CCC "U" on the return, see IRM 3.11.16.7.9, Short Period Returns - With Prepaid Credit.
Form 1120, Page 3, Schedule J, Line 13, 14 or 17 (Line 12, 13, or 16 for 2017-2011) or applicable line on other Form 1120 series.
(4) Edit CCC "Y" when the Taxpayer Services (), Submission Processing (SP), Taxpayer Advocate Service (TAS) Liaison walks a return through C&E.
CCC "Z" - Schedule UTP (Form 1120 ), Uncertain Tax Position Statement
(1) Schedule UTP (Form 1120), Uncertain Tax Position Statement, is a high priority form.
(2) Edit CCC "Z" if Schedule UTP is attached to a Form 1120, Form 1120-F, Form 1120-L, or Form 1120-PC.
Note: Do not edit CCC "Z" if Schedule UTP has no entries.
CCC "1" - Like-Kind Exchanges (and section 1043 conflict-of-Interest sales)
(1) Edit CCC "1" if Form 8824 is attached. CCC "1" is valid on:
Form 1120
Form 1120-FSC
Form 1120-ND
Form 1120-REIT
Form 1120-SF
CCC "2" - Statement of Specified Foreign Financial Assets
(1) Edit CCC "2" if Form 8938, Statement of Specified Foreign Financial Assets, is attached. (Form 1120 only), see IRM 3.11.16.11.47.10, Schedule N, Line 8 - Form 8938, Statement of Specified Foreign Financial Assets.
♦CCC "3" - "No Reply" to Correspondence♦
(1) Edit CCC "3" when the tax return is unprocessable and there is a sign that correspondence was sent and no reply received.
CCC "4" - IRC 6020(b) Return
(1) CCC "4" is not valid for Form 1120 series at this time.
CCC "5" - Bank Holding Company Tax Act
(1) Edit CCC "5" when there is a statement electing to make installment payments for a portion of the total tax attributable to the Bank Holding Company Tax Act, see Figure 3.11.16-10.
CCC "6" - Section 847 Deductions
(1) The instructions for CCC "6" only apply to Tax Period 201812 and prior. For Tax Period 201901 and later, no action is needed.
(2) Edit CCC "6" when any of the following is present:
Form 1120, Form 1120-L, or Form 1120-PC indicates a "Section 847 Deduction." Form 8816, also, indicates a "Section 847 Deduction," see IRM 3.11.16.3.10, IRC 847 Deduction.
Form 1120 includes a notation stating "Form 8816" with a corresponding entry for the amount of the deduction on Schedule J, Part III, Line 14 (Part II, Line 13 for 2017-2011).
Form 1120-L includes an entry on Line 28b for 2018 (Line 29b and/or 29d for 2017-2011).
Form 1120-PC includes an entry on Line 15b for 2018 (Line 14b and/or 14d for 2017-2011).
CCC "8" - Waiver of Estimated Tax Penalty
(1) Edit CCC "8" when any of the following is present:
Form 2220 is attached and Part II, Box 6 or Box 7 is checked, see Figure 3.11.16-11.
Form 2220 is attached and any column on Form 2220, Schedule A, page 4, Line 38 has entries.
CCC "9" - Low-Income Housing Credit
(1) Edit CCC "9" when any of the following conditions exist:
Form 1120, Schedule J, Line 9b has a significant entry.
Form 1120-C, Schedule J, Line 8 has a significant entry.
Form 1120-REIT or Form 1120-RIC, Schedule J, Line 9 (Line 7 for 2021 and 2022; Line 6 for 2020 and prior) has a significant entry.
Form 8611 is attached.
Form 8609 is attached.
Form 8609-A is attached.
Form 8586 with entries on Line 1 or 3.
Return Processing Code (RPC)
(1) Return Processing Code (RPC) is an alpha or numeric character used to alert the computer to a special condition or computation.
(2) RPCs are edited on Page 1, in the right margin next to Line 1c of Form 1120.
(3) More than one RPC can be edited and in any order.
(4) Refer to the table below for an explanation of when to edit each RPC.
RPC | Explanation |
|---|---|
A | Form 5471, Schedule E, Income, War Profits, and Excess Profits Taxes Paid or Accrued, is attached. |
B | Form 5471, Schedule H, Current Earnings and Profits, is attached. |
C | Form 5471, Schedule I-1, Information for Global Intangible Low-Taxed Income, is attached. |
D | Form 5471, Schedule P, Previously Taxed Earnings and Profits of U.S. Shareholder of Certain Foreign Corporations, is attached. |
E | Form 8865, Schedule G, Statement of Application for the Gain Deferral Method Under Section 721(c), is attached. |
F | Form 8865, Schedule H, Acceleration Events and Exceptions Reporting Relating to Gain Deferral Method Under Section 721(c), is attached. |
G | Form 5471, Schedule G-1, Cost Sharing Arrangement is attached. |
H | Form 5472. Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, Part VIII, Cost Sharing Agreement, has an entry (e.g., description, checkbox marked, percent, or an amount). |
J | For Tax Period 202201 - 202212, taxpayer writes IRA22DPE on Form 3800, Form 1120, Schedule J, Line 20d or on an attachment.
|
K | For Tax Period 202201 - 202212, taxpayer writes IRA22TRE on Form 3800, on an attachment or at the top of the return.
|
L | Form 7204, Consent to Extend the Time to Assess Tax Related to Contested Foreign Income Taxes - Provisional Foreign Tax Credit Agreement, is attached. |
M | Form 7205, Energy Efficient Commercial Buildings Deduction, is attached. |
N | Form 4626, Alternative Minimum Tax (2023 Revision and later) is attached or Form 1120, Schedule J, Line 3 shows a significant amount. |
1 | Form 8991, Tax on Base Erosion Payments of Taxpayers with Substantial Gross Receipts, is attached. |
2 | Form 8992, U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI), is attached. |
3 | Form 8993, Section 250 Deduction for Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI), is attached. |
4 | Form 8994, Employer Credit for Paid Family and Medical Leave, is attached. |
6 | Form 8996, Qualified Opportunity Fund, is attached. |
7 | Form 8990, Limitation on Business Interest Expense IRC 163(j), is attached. |
9 | Form 8997, Initial and Annual Statement of Opportunity Fund (QOF) Investments, is attached. |
ABLM Code and Schedule M-3 Checkbox
(1) ABLM is not an acronym. The letters are a carryover from when Form 1120 was generic. The ABLM Code identifies a specific type of tax return. The ABLM letters are defined as follows:
A - Consolidated Tax Return
B - Personal Service Corporation
L - Life Insurance Tax Return
M - Mutual Fund Tax Return
(2) ABLM Codes are valid for Form 1120, Form 1120-REIT, and Form 1120-RIC.
(3) Edit an ABLM code in the margin by Boxes A - 1, A - 2, and A - 3 to the left of the name line as instructed in paragraphs (4) through (7) below.
(4) There is no need to edit the ABLM Code on Form 1120-C, Form 1120-L or Form 1120-PC because it is computer-generated.
Note: For Form 1120-REIT, and Form 1120-RIC, if no code applies, leave the area blank.
(5) If ABLM Code "010" is entered on Form 1120, the return must be batched as a "Consolidated Return." If not, reject for proper batching. Enter Action Code "610" if the return is numbered.
(6) Only one ABLM Code will be entered; edit in the following priority:
400 - Box A - 3
010 - Box A - 1a or A - 1b
001 - Box A - 2
Note: If ABLM Code "400" is edited on a Consolidated Return, Form 851 processing procedures must also be followed, see IRM 3.11.16.29.3, Form 851 - Affiliations Schedule.
(7) Code ""010"" when any of the following apply (Form 1120 only):
Box A - 1a or Box A - 1b is checked, see Figure 3.11.16-12 a.
Subsidiaries are listed on Form 851 or Form 1122 is attached.
(8) Code "001" when any of the following apply:
Box A - 2, Page 1, Form 1120 is checked, see Figure 3.11.16-12 b.
Box B - 2, Page 1, Form 1120-REIT is checked.
Box F, Page 1, Form 1120-RIC is checked.
Schedule PH (Form 1120) is attached to Form 1120, Form 1120-REIT, or Form 1120-RIC.
Form 1120, Page 3, Schedule J, Line 8 has an entry.
Form 1120-REIT, Page 3, Schedule J, Line 5 has an entry.
Form 1120-RIC, Page 3, Schedule J, Line 5 has an entry.
Note: If Form 1120, Schedule J, Line 8 has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond. for Schedule PH if not attached, see IRM 3.11.16.11.23, Schedule J, Line 8 - Personal Holding Company Tax. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(Form 1120-REIT or Form 1120-RIC, Schedule J, Line 5.)
(9) Code "400" when any of the following apply:
Box A - 3, Page 1, Form 1120 is checked.
The box on Form 1120, Page 3, Schedule J, Line 2 is checked (2017 and prior).
Note: Also edit Personal Service Corporation Code "2" if the box on Form 1120, Page 3, Schedule J, Line 2 is checked (201811 and prior).
Schedule M-3 Checkbox
(1) Edit Computer Condition Code "B" when the box for Schedule M-3 is marked, see Figure 3.11.16-12 c.
Form 1120, Page 1, Box A, 4.
Form 1120-C, Page 1, Box A, 2.
Form 1120-F, Page 1, Schedule M-3 box.
Form 1120-L, Page 1, Box A, 3.
Form 1120-PC, Page 1, Box A, 3.
(2) Edit Computer Condition Code "B" when Schedule M-3 is attached to Form 1120, Form 1120-C, Form 1120-F, Form 1120-L, or Form 1120-PC.
Note: Audit Codes 2, "7" and "8" may also be required for Form 1120. Audit Code "2" may be required for Form 1120-PC, see IRM 3.11.16.10.1, Audit Codes.
Initial Return Code
(1) Initial Return Code is valid for Form 1120, Form 1120-REIT, and Form 1120-RIC.
(2) Edit an Initial Return Code "2" in the margin to the right of the Date Incorporated if any of the following conditions are met:
The "Initial return" box under the entity area is checked.
Page 1, Box B (1120-RIC), Box C (1120), Box D (1120-REIT) has a date incorporated which is within 12 months from the Tax Period ending date, see Figure 3.11.16-13a.
There is a taxpayer notation of initial filing, such as, "New Corporation," etc.
The incorporation date is within 24 months from the Tax Period ending date (or is not shown) and the taxpayer's Balance Sheet, "Beginning of tax year" is blank or zeros, see Figure 3.11.16-13 "First Return" b.
Reminder: Edit the Tax Period Beginning on an "Initial" Short Period return in MMDDYY format, see IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
Note: Do not edit Initial Return Code "2" if the balance sheet is missing or the balance sheet has been dummied.
Initial Return/ Tax Period Ending | 24 Month Rule/24 Month Cutoff Date |
|---|---|
2503 | 04/01/2023 |
2502 | 03/01/2023 |
2501 | 02/01/2023 |
2412 | 01/01/2023 |
2411 | 12/01/2022 |
2410 | 11/01/2022 |
2409 | 10/01/2022 |
2408 | 09/01/2022 |
2407 | 08/01/2022 |
2406 | 07/01/2022 |
2405 | 06/01/2022 |
2404 | 05/01/2022 |
2403 | 04/01/2022 |
2402 | 03/01/2022 |
2401 | 02/01/2022 |
2312 | 01/01/2022 |
2311 | 12/01/2021 |
2310 | 11/01/2021 |
2309 | 10/01/2021 |
2308 | 09/01/2021 |
2307 | 08/01/2021 |
2306 | 07/01/2021 |
2305 | 06/01/2021 |
2304 | 05/01/2021 |
2303 | 04/01/2021 |
2302 | 03/01/2021 |
2301 | 02/01/2021 |
2212 | 01/01/2021 |
2211 | 12/01/2020 |
2210 | 11/01/2020 |
2209 | 10/01/2020 |
2208 | 09/01/2020 |
Additional Return Perfection
(1) Elements will be edited in the left margin near Line 12 (Line 2 for Form 1120-F, Form 1120-FSC and Line 5 for Form 1120-ND) preceded by the applicable number as follows:
Element | Edit |
|---|---|
1 - Form 8844 Indicator | "1 - 1." |
2 - Audit Code | "2 -" followed by the right Audit Code (e.g., "2 - 1"). |
3 - Missing Schedule Code | Normal correspondence procedures will replace Missing Schedule Codes. Do not edit Missing Schedule Codes. |
4 - Penalty and Interest Code | "4 - 1." |
5 - Reserve Code | "5 - 4." |
6 - Installment Sale Indicator | "6 -" followed by the right Installment Sale Indicator (e.g., "6 - 3"). |
7 - Form 1120-F Indicator | "7 - 1" if Form 1120-F has both Non-Effectively (Section I) and Effectively (Section II) Connected Income. Note: Check for proper blocking of returns and re-block as required. |
Audit Codes
(1) Up to 15 Audit Codes can be used. Do not use an Audit Code more than once.
Note: Audit Codes do not need to be edited in a specific order.
(2) Edit a "2 -" followed by the right Audit Code(s) in the left margin near Line 12 (e.g., "2 - 1").
(Line 2 for Form 1120-F, Form 1120-FSC and Line 5 for Form 1120-ND)
(3) Audit Code "1" - Disclosure Statement or Inconsistent Treatment. Edit Audit Code "1" if any of the following conditions are present:
Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR) is attached.
Form 8275, Disclosure Statement, or Form 8275-R, Regulated Disclosure Statement, is attached, or a statement referring specifically to IRC 6662 (Disclosure).
Form 8886, Reportable Transaction Disclosure Statement, is attached.
Note: Edit CCC "T" if Form 8886 is attached, see IRM 3.11.16.9.1.20, CCC "T" - Form 8886, Reportable Transaction Disclosure Statement.
(4) Audit Code "2" - International. Edit Audit Code "2" when any of the following conditions are present:
An entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ appears on Page 2, Schedule C, for any of the following Lines: 3, 6, 7, 8, 12, 13, 14, 15 16a, 16b, 16c, 17, 18, and/or 19 (Lines 3, 6, 7, 8, 12, 13, 14, 15, and/or 16 for 2017 and prior). (Form 1120-PC, Page 4, Schedule C, Lines 3, 6, 7, 8, 10, 11, 12a, 12b, 12c, 13, and/or 14. (Lines 3, 6, 7, 8, 10, 11, and/or 12 for 2017 and prior).
Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation, is attached.
Form 1116, Foreign Tax Credit (Individual, Fiduciary or Nonresident Alien Individual) is attached and reflects ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ foreign tax credit (Part IV, Line 29).
Form 1118, Foreign Tax Credit - Corporations, is attached and reflects ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ foreign tax credit on Form 1120, Schedule J, Line 5a (or applicable line on Form 1120-L, Form 1120-PC, Form 1120-REIT, or Form 1120-RIC).
Schedule M-3 (Form 1120), Net Income (Loss) Reconciliation for Corporations with Total Assets of $10 Million or More, is attached and any of the following are present:
- Any entry on Part II, Column (c), Lines 2 through 5 or 10 is a negative amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or
- Any entry on Part III, Column (c), Lines 5 through 7 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or
- The sum of Part III, Columns (b) plus (c) of any of Lines 9 or 23 - 25 (Lines 8, 23, 24 or 25 for Form 1120-PC) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡Schedule N (Form 1120), Foreign Operations of U.S. Corporations, is attached and Questions 1a, 3, 5, or 7a are answered "Yes" (Questions 1a, 3, 4a, 5, or 7a for 2019 and prior).
Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, is attached.
Form 3520-A, Annual Information Return of Foreign Trust with a U.S. Owner (under IRC 6048(b)), is attached.
Form 5471, Information Return of U.S. Persons with Respect to a Foreign Corporation, is attached, or Schedule N (Form 1120), Foreign Operations of a U.S. Corporations, Line 4a (2019 and prior) is marked "Yes."
Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business (Under Sections 6038A and 6038C of the Internal Revenue Code), is attached.
Form 5713, International Boycott Report, is attached and both questions in 7(f) are answered "Yes."
Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualifying Electing Fund, is attached and any line in Part V, Lines 15a though 16f* has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Form 8832, Entity Classification Election, is attached and either Box 6(d), (e), or (f) is checked.
Form 8833, Treaty-Based Return Position Disclosure Under IRC 6114 or 7701(b), is attached.
Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs), is attached or Schedule N (Form 1120), Foreign Operations of U.S. Corporations, Question 1a is marked "Yes."
Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, is attached.
Form 8902, Alternative Tax on Qualifying Shipping Activities, is attached.
(5) Audit Code "3" - Non-Cash Charitable Contributions and Asset Transfers. Edit Audit Code "3" when any of the following conditions are present:
Form 8883, Asset Allocation statement under section 338, is attached ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Form 8594, Asset Acquisition Statement, is attached ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Note: It is not necessary to compute the total if more than one Form 8594 is present. If any ONE of the Form 8594 has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, edit Audit Code "3."
(6) Audit Code "4" - Invalid S Election. Edit Audit Code "4" when a Form 1120-S without a valid election is reprocessed as Form 1120 and Form 13596, Reprocessing Returns, is attached.
Caution: If a Form 1120 converted from Form 1120-S is received and the Form 13596, Reprocessing Returns, is attached for reprocessing, see IRM 3.11.16.3.8.2, Form 13596 - Reprocessing Returns.
(7) Audit Code "6" - Form 3115 (Form 1120 only). Edit Audit Code "6" when Form 3115, Application for Change in Accounting Method, is attached.
(8) Audit Code "7" - International (Form 1120 only). Edit Audit Code "7" when any of the following conditions are present:
An entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Form 1120, Page 2, Schedule C for any of the following lines: 3, 6, 7, 8, 12, 13, 14, 15, 16a, 16b, 16c, 17, 18, and/or 19 (Lines 3, 6, 7, 8, 12, 13, 14, 15, or 16 for 2017 and prior).
Form 1116, Foreign Tax Credit, (Individual, Fiduciary or Nonresident Alien Individual) is attached and reflects ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ foreign tax credit on Part IV, Line 33.
Form 1118, Foreign Tax Credit - Corporations, is attached and reflects ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ foreign tax credit on Form 1120, Schedule J, Line 5a.
Form 1120, Schedule M-3, Net Income (Loss) Reconciliation for Corporations with Total Assets of $10 Million or More, is attached and any of the following apply:
- Any entry on Part II, Column (c), Lines 2 through 5 or Line 10 is a negative amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or
- Any entry on Part III, Column (c), Lines 5 through 7 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or
- The sum of Part III, Columns (b) plus (c) of any of Lines 9, 23, 24, or 25 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.Form 5713, International Boycott Report, is attached and both questions in 7(f) are not answered "Yes."
Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualifying Electing Fund, is attached and Part V, Lines 15a through 16f has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
(9) Audit Code "8" - Schedule M-3 (Form 1120 only). Edit Audit Code "8" when Schedule M-3 is attached.
(10) Audit Code "C" - Edit Audit Code "C" when Form 8283 is attached and:
Box 2b is checked, or
Box 2b1 is checked, or
Line 3, Column (h) has an entry.
(11) Audit Code "W". - Edit Audit Code W if any of the following conditions are present:
Form 3800, General Business Credit, Line 1p has an entry and Form 8908, Energy Efficient Home Credit, is not attached.
Form 3800, General Business Credit, Line 1p has an entry and Form 8908 is attached but Part II is missing.
Form 3800, General Business Credit, Line 1p has an entry and Form 8908 is attached but Part II, Column A, is incomplete or missing.
Note: Audit Code "W" is valid for Form 1120, Form 1120-F, Form 1120-REIT, and Form 1120-RIC.
Penalty and Interest Code
(1) Edit "4 - 1" in the left margin near Line 12 when precomputed delinquency penalty and/or interest is shown on a return with a received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
Exception: The editing location of the Penalty and Interest Code for Form 1120-F and Form 1120-FSC is in the left margin near Line 2. The editing location for Form 1120-ND is in the left margin near Line 5. For all other Form 1120 series returns, edit the Penalty and Interest Code in the left margin near Line 12, as stated in (1).
(2) This code is valid only within the unextended ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ some other situation, such as an estimated tax penalty, do not Code "4 - 1" and do not edit Condition Code "R."
Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Reserve Code
(1) The Reserve Code is "4."
(2) Edit "5 - 4" in the left margin near Line 12 if Form 2220 is attached and Part II, Box 8 is checked for Large Corporation.
Installment Sale Indicator (Form 6252)
(1) Form 6252, Installment Sale Income, is used to report the sale of property on the installment method.
(2) Codes are based solely on taxpayer response to Form 6252, Question 3.
(3) Edit "6 -" followed by the right Installment Sale Indicator code in the left margin near Line 12 when Form 6252 is present (e.g., "6 - 1").
(Line 2 for Form 1120-F and Form 1120-FSC.)
(4) Valid Installment Sale Indicator codes are as follows:
Code | One Form 6252 | More Than One Form 6252 |
|---|---|---|
1 | "Yes" response to Question 3 | At least one form has a "Yes" response. |
2 | "No" response to Question 3 | All "No" responses, or a combination of "No" and/or blank responses. |
3 | "Yes" and "No" are checked or Question 3 is blank | Question 3 is blank on all forms. |
Note: See IRM 3.11.16.26, Form 6252 - Installment Sale Income (Form 1120 Only) for sequencing and transcription instructions.
Form 1120-F Indicator
(1) Edit "7 - 1" in the left margin near Line 2 if Form 1120-F has both Non-Effectively (Section I) and Effectively (Section II) Connected Income.
(2) Check for proper blocking of returns and re-block as required, see IRM 3.11.16.34.14.6, Form 1120-F Indicator Code.
Return Processing - Form 1120
(1) This subsection addresses the editing of specific areas on Form 1120.
(2) If a Form 5472 is attached to a blank (no tax data), Form 1120, do not process. Send the Form 1120 and Form 5472 to SOI at the following address:
Internal Revenue Service
1973 N Rulon White Blvd.
PIN Unit, Stop 6112
Ogden, UT 84201-0012
Note: Consider a return blank if the only money amount is Box D, Total Assets.
Note: Foreign-owned domestic disregarded entities are instructed to attach the Form 5472 to a pro forma Form 1120. These entities are not required to file a Form 1120 and the return must not be processed.
(3) A Form 1120 series with a notation such as "Pro Forma," "Pro Forma Form 1120," "Pro Forma Form 1120 for New York State," or similar statement, the "Pro Forma" return must not be processed.
If | Then |
|---|---|
A "Pro Forma" return is attached to a Form 1120 series, | Do not detach. Move the "Pro Forma" return to the back of the document. |
A "Pro Forma" return is not attached to a Form 1120 series, |
|
(4) To convert prior year tax returns, see Exhibit 3.11.16-8, Form 1120 - Prior Year Conversion Chart.
Sequence - Form 1120
(1) Document Perfection is responsible for arranging Form 1120 in the following order when transcription line entries are present:
Pages 1, 2, 3, 4, 5, 6
Schedule N (Form 1120)
Schedule D (Form 1120)
Form 4797
Form 8949
Form 8996
Schedule O (Form 1120) (Tax period 201811 and prior only)
Form 4626 (Tax period 201811 and prior only (Revision 2017))
Form 4626 (Tax period 2022 and later (2023 Revision and later)
Form 8050
Form 1125-A
Form 4136
Form 8978
Form 965-B
Form 8941
Form 3800
Form 8997
Form 6252
Form 8936 Schedule A(Tax period 2023 and later)
Form 4255 (Tax period 2024 and later)
(2) It is not necessary to sequence the forms or schedules listed above if there are no transcription line entries.
(3) It is not necessary to sequence an Amended return. See IRM 3.11.16.3.9, Amended Returns, for more information.”
Negative Figures
(1) On Page 1 of the Form 1120:
Do not bracket or "X" the amount on Line 1b if negative.
If editing a negative entry on Lines 1b, 2, 9, 10, 11, 15, 26, and 27, bracket the negative amount.
(2) Line 8 will NEVER be bracketed. "X" any negative entry on Line 8, see IRM 3.11.16.11.4.7, Line 8 - Capital Gain.
(3) Do not bracket Lines 29a and 29b.
(4) "X" any negative transcription entries on Pages 2 and 3 of the Form 1120.
(5) Page 6 (Page 5 for 2017 and prior), "Schedule L, Balance Sheet," see IRM 3.11.16.11.46, Schedule L, Balance Sheet.
(6) Form 4626, Alternative Minimum Tax, (201811 and prior), see IRM 3.11.16.13, Form 4626 - Alternative Minimum Tax.
(7) Form 4136, Credit for Federal Tax Paid on Fuels - "X" any negative entries, see IRM 3.11.16.19, Form 4136 - Credit for Federal Tax Paid on Fuels.
Total Assets - Box D
(1) Total Assets is shown in Box D of Form 1120.
(2) If Total Assets, Box D is blank, check the Balance Sheet and edit Total Assets Ending from Schedule L, Line 15, Column (d) to Total Assets, Box D, Page 1. Bracket if negative, see Figure 3.11.16-14.
Note: It is not necessary to edit a "1" in Box D even if it is edited on Schedule L, Line 15, Column (d). The "1" is needed on Schedule L, Line 15, Column (d) to prevent Error Code 150 from generating in ERS.
Form 1120, Total Income - Lines 1 through 11
(1) The following subsection provides editing instructions for Form 1120, Lines 1 through 11. Edit Lines 1 through 11 in dollars only.
(2) If Line 11 is the only entry in the income section or the income section is blank and there is a sign the income items are included on an attachment (e.g., a notation such as "See attached," "See Schedule F," "Statement attached"), examine the return for more detailed schedules.
If | And | Then |
|---|---|---|
Additional income is found | The income is not reflected elsewhere on the return, |
|
Line 1 - Gross Receipts or Sales
(1) Line 1a is Gross Receipts or Sales, and Line 1b is Returns and allowances (Do not bracket or "X" amount on Line 1b if negative).
(2) If Lines 1a, 1b and 1c are all blank but the taxpayer indicates Gross Profit on Line 3, add Line 2 and Line 3 and enter on Line 1a. Bracket if negative.
Exception: If Line 2 is blank, see IRM 3.11.16.11.4.2, Line 2 - Cost of Goods Sold, before computing Line 1a.
(3) If Line 1a is blank and an amount is present on Lines 1b and 1c, add Line 1b and Line 1c and enter the total amount on Line 1a. Bracket if negative.
(4) If Line 1b is blank, check attachments.
If found, enter the amount to Line 1b.
If not found and Line 1a is greater than Line 1c, compute and enter Line 1b (Line 1a minus 1c).
Line 2 - Cost of Goods Sold
(1) If Line 2 is blank, edit from Form 1125-A, Line 8. Bracket if negative.
If | Then |
|---|---|
Form 1125-A, Line 8 is blank and Line 6 has an entry, | Edit the amount from Line 6, minus any amount on Line 7. |
Form 1125-A, Line 6 is blank and there are entries on Lines 1 through 5, | Edit the total of Lines 1 through 5 minus any amount on Line 7. |
Line 8 - Capital Gain
(1) If there is a significant entry on Line 8, and Schedule D (Form 1120) is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(2) When Schedule D is attached, compare Form 1120, Line 8 to Schedule D, Line 18:
If | And | Then |
|---|---|---|
The comparison shows the entries are the same, | Both entries are positive, | Continue processing. |
The comparison shows the entries are different, | Both entries are positive, | Edit the Schedule D, Line 18 amount to Form 1120, Page 1, Line 8. |
Form 1120, Line 8 is blank, zero or illegible, | Schedule D, Line 18 is positive, | Edit the Schedule D, Line 18 amount to Form 1120, Page 1, Line 8. |
(3) If the comparison shows a negative entry:
"X" the Line 8 amount.
Math verify and perfect Schedule D to ensure the negative figure is correct and intended.
If the negative amount is due to a loss under IRC 582 for worthlessness of bonds, move the amount to Bad Debts (Form 1120, Page 1, Line 15) as a positive figure. Adjust Total Income and Total Deductions as required.
If the negative amount is due to a loss under IRC 582 for the sale or exchange of securities by a bank, etc., move the amount to Other Deductions (Form 1120, Page 1, Line 26) as a positive figure. Adjust Total Income and Total Deductions as required.
Note: All other losses on Schedule D will not be allowed.
Line 9 - Net Gain or Loss from Form 4797
(1) Edit Line 9 as follows:
Reminder: Form 4797 is a transcribed form. Place in sequence order if attached to a Form 1120 and Line 1b and/or 1c is present. See IRM 3.11.16.15, Form 4797 - Sales of Business Property (Form 1120 Only).
If | Then |
|---|---|
Form 1120, Page 1, Line 9, has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 4797 is not attached and the taxpayer has not attached Form 4684, | Correspond. |
Form 4797 is attached, compare Form 1120, Page 1, Line 9 with Form 4797, Line 17, | If different, edit Form 4797 amount to Form 1120, Page 1, Line 9. Bracket if negative. |
Form 4797, Line 17 is blank (has not been computed by the taxpayer) and there are entries in Parts II or III of Form 4797, | Correspond for completed Form 4797. |
(2) Check for taxpayer errors in the transfer of entries from Form 4797 to Page 1, Form 1120. Also check the transfer of data from Line 9, Form 4797 to Line 11, Schedule D.
If | And | Then |
|---|---|---|
Form 1120, Page 1, Line 8 is blank, | There is a positive entry on Form 1120, Page 1, Line 9 and Form 4797, Line 9 has a significant positive entry, | Arrow Form 1120, Line 9 entry to Line 8 and correspond for Schedule D. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
There is a notation on Form 1120, Page 1, Line 9 that Form 4684 is attached, |
| Do not correspond. Compare Form 1120, Page 1, Line 9 with Form 4684, Line 31 plus 38a. If different, edit Form 4684 amount to Line 9, Form 1120. |
Line 10 - Other Income
(1) Other income or loss not shown on Lines 1a through 9 is reported on Line 10 of Form 1120.
(2) Edit Line 10 as follows:
If | Then |
|---|---|
"Other Income" items are included on Lines 1 through 9, |
|
Line 11 - Total Income
(1) The total income or loss (sum of Lines 3 through 10) is reported on Line 11 of Form 1120.
(2) Edit Line 11 as follows:
If | Then |
|---|---|
Line 11 is blank or illegible, but there are entries on Lines 1a through 10, |
|
Line 11 is the only entry in the income section, |
|
The income section is blank and there is a sign the income items are included on an attachment (e.g., "See attached," "See Schedule F," "Statement attached"), |
|
There is an amount present for "Total Income" on Line 11, but the amount is not identified on Lines 1a through 10 or from attachments, |
|
Form 1120, Deduction Items - Lines 12 through 29
(1) Edit Lines 12 through 29 in dollars only.
(2) If Line 27 is the only entry in the deduction section or the deduction section is blank and there is a sign the deduction items are included on an attachment (e.g., "See attached," "See Schedule F," "Statement attached"), examine the return for more detailed schedules.
If | And | Then |
|---|---|---|
Additional deductions are found | The deductions are not reflected elsewhere on the return, |
|
Line 13 - Salaries and Wages (less employment credits)
(1) Accept taxpayer's entry.
Line 23 - Pension, Profit-sharing, etc. Plans
(1) Accept taxpayer's entry.
Line 25 - Energy Efficient Commercial Buildings Deduction (Form 7205) (202301 and later)
(1) Accept taxpayer entry.
(2) Edit RPC "M" if Form 7205 is attached.
(3) For prior years, Line 25 was used for the domestic production activities deduction. The deduction has been repealed under IRC 199.
(4) The Domestic Production Activities Deduction is valid for Tax Period beginning 01/01/2005 through 01/01/2018. The Energy Efficiency Commercial Buildings Deduction is valid for Tax Period beginning after 01/01/2023. If the Tax Period beginning date is not between 01/01/2005 and 01/01/2018 nor after 01/01/2023, or 202301 and later (Energy Efficient Commercial Building Deduction), delete Line 25 if a significant entry is present.
Line 26 - Other Deductions
(1) Other deductions not shown on Lines 12 through 25 are reported on Line 26 of Form 1120.
(2) Edit Line 26 as follows:
If | Then |
|---|---|
"Other Deductions" items are included on Lines 12 through 25, |
|
Line 27 - Total Deductions
(1) The total deductions (sum of Lines 12 through 26) is reported on Line 27 of Form 1120.
(2) Edit Line 27 as follows:
If | Then |
|---|---|
Line 27 is blank or illegible but there are entries on Lines 12 through 26, | Add Lines 12 through 26 and enter the total on Line 27 of Form 1120. Bracket if negative. |
Line 27 is the only entry in the deduction section, |
|
The deduction section is blank and there is a sign the deduction items are included on an attachment (e.g., "See attached," "See Schedule F," "Statement attached"), |
|
There is an amount present for "Total Deductions" on Line 27, but the amount is not identified on Lines 12 through 26 or from attachments, |
|
Lines 29a and 29b - Net Operating Loss and Special Deductions
(1) Never bracket Line 29a or 29b amounts as they are negative fields. Do not "X" these lines if they are bracketed by taxpayer.
(2) If it is obvious from a notation on Line 29b that it includes patronage dividends, edit patronage dividends from Line 29b to Line 26, "Other Deductions," and adjust Line 27, "Total Deductions," see Figure 3.11.16-17.
(3) If Line 29c has an entry and Lines 29a and 29b are blank, look for an entry on Schedule C, Line 24, Column (c) (Schedule C, Line 20 for 2017 and prior). If present, enter the amount on Line 29b and edit any difference to Line 29a. If blank or zero, edit the entire Line 29c amount to Line 29a. 
Tax Computation and Settlement - Lines 31 through 37
(1) Following are instructions for Lines 31 through 37. Edit in dollars only.
Line 31 - Total Tax
(1) If blank, enter amount from Page 3, Schedule J, Line 11 if present.
(2) If pre-computed interest or delinquency penalty or an additional charge is evident, ensure that it has not been included in Line 31.
If | Then |
|---|---|
The amount on Line 31 has pre-computed interest or penalty or additional charge, |
|
Line 32 - Reserved
(1) Line 32 - Net Tax Liability for the Reporting Year (revisions 2018 through 2020),
(2) The instructions in this subsection only apply to Tax Period 201712 through 202012.
(3) If blank, enter amount from Schedule J, Part II, Line 12 or from the following lines from Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts:
Reporting Tax Year | Form 965-B |
|---|---|
2017 | Part II, Column (k), Line 1 |
2018 | Part II, Column (k), Line 2 |
2019 | Part II, Column (k), Line 3 |
2020 | Part II, Column (k), Line 4 |
(4) Edit CCC "J" and Action Code "460."
Line 33 - Total Payments and Credits (Schedule J, Part III, Line 23)
(1) If blank, enter amount from Page 3, Schedule J, Line 23 (Line 21 for 2017-2011) if present.
Backup Withholding
(1) "X" any entry identified by the taxpayer as "Backup Withholding" and edit it to Part III, Schedule J, Line 18 (Part II, Line 17 for 2017-2011).
(2) If the taxpayer has claimed backup withholding ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 1099 is not attached, correspond using Letter 118C, Corporate Return Incomplete for Processing: Form 1120, Form 1120 Series, Form 1120-S. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
FIRPTA, Form 1042-S, Form 8805 and Form 8288-A Credits
(1) If Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, Form 8805, Foreign Partners Information Statement of IRC 1446 Withholding Tax, or Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons, credit is claimed, route to OSPC.
(2) If Form 8288-A withholding is claimed, OSPC will:
If | Then |
|---|---|
Form 8288-A or substantial evidence is attached, Example: Substantial evidence includes closing documents or settlement statement which shows the amount of tax withheld. |
|
Form 8288-A or substantial evidence is not attached, Example: Substantial evidence includes closing documents or settlement statement which shows the amount of tax withheld. | Correspond. |
(3) If Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, withholding is claimed, OSPC will:
If | Then |
|---|---|
The Form 1042-S credit is claimed on any other credit line, | "X" the credit and add to Schedule J, Line 20a (Line 19a for 2017-2011). |
The taxpayer's name is not listed as the recipient in Box 13a of the Form 1042-S, Note: Box 13a cannot be a withholding rate pool, | "X" the amount. |
The withholding amounts on Form 1042-S do not equal the amount of the credit, | "X" the amount. |
Form 1042-S is not attached, | Correspond. Exception: If a letter is attached, signed by the Competent Authority, accept the letter as proof of Form 1042-S withholding and do not correspond for the missing Form 1042-S. |
(4) If Form 8805 withholding is claimed, OSPC will:
If | Then |
|---|---|
The Form 8805 credit is claimed on any other credit line, | Edit the credit to Schedule J, Line 20a (Line 19a for 2017-2011). |
Form 8805 is not attached, | Correspond. |
Line 34 - Estimated Tax Penalty
(1) Estimated tax penalty must be edited when either:
An additional penalty is precomputed on the return, or
Form 2220, Underpayment of Estimated Income Tax by Corporations, is attached to the return, and shows liability for estimated tax penalty.
(2) To edit Line 34 (Line 33 for 2017 and prior), do the following:
If the taxpayer follows the instructions on Form 2220, the applicable amount must be shown on Form 2220, Page 2, Line 38, and on Form 1120, Line 34 (Line 33 for 2017 and prior) or equivalent lines on other forms. The taxpayer may also have increased Form 1120, Line 35 (Line 34 for 2017 and prior) or decreased Line 36 (Line 35 for 2017 and prior). Do not adjust this amount.
If Form 1120, Line 34 (Line 33 for 2017 and prior) is blank, and Form 2220 is attached with a significant entry on Page 2, Line 38, then edit the amount from Form 2220, Page 2, Line 38 to Form 1120, Line 34 (Line 33 for 2017 and prior).
If Form 2220, Page 2, Line 38 is blank and Form 1120, Line 34 (Line 33 for 2017 and prior) is also blank, review the Form 2220 to determine the taxpayer's method of computation. If there are entries on Form 2220, Line 37, Columns (a) through (d), compute the total amount and enter on Form 1120, Line 34 (Line 33 for 2017 and prior), see Figure 3.11.16-20.
Note: If Form 2220 is attached some conditions may require CCC "8" and/or Reserve Code "4."
Lines 35 and 36 - Amount Owed/Overpayment
(1) Lines 35 and 36 (Lines 34 and 35, for 2017 and prior) are edited as positive only. If the taxpayer enters a negative amount, do not bracket.
(2) If both lines 35 or 36 (Lines 34 and 35 for 2017 and prior) are blank, edit as follows:
Form 1120 Revision | Action |
|---|---|
2021 and later |
|
2020 through 2018 |
|
2017 and prior |
|
(3) If pre-computed interest or delinquency penalty or an additional charge is evident, ensure that it has not been included in Line 35 or reduced Line 36 (Lines 34 and 35 for 2017 and prior).
If | Then |
|---|---|
The amount on Line 35 (Line 34 for 2017 and prior) has pre-computed interest or penalty or additional charge, |
|
The amount on Line 36 (Line 35 for 2017 and prior) is reduced by pre-computed interest or penalty or additional charge, |
|
♦Signature♦
(1) A signature and jurat are required on all returns except the following:
Returns prepared under IRC 6020(b). These returns must be signed by a Compliance Function representative, see IRM 3.11.16.3.6.1, IRC 6020(b) Prepared by Collections.
Note: Accept electronic or typed revenue officer (RO) signatures as valid on the return.
Returns prepared by Examination, for example Substitute for Return.(SFR) or "SUBSTITUTE RETURN," see IRM 3.11.16.3.6.3, Examination Prepared Returns - SFR or Substitute for Return.
Dummy returns prepared by the IRS.
Returns filed under IRC 501(d) (Religious or Apostolic Organization).
Returns attached to taxpayer response to IRS correspondence containing a jurat and the taxpayer’s signature. (See paragraph (5) below.)
Re-entry returns originally filed electronically ("E-File"). These returns may be identified by the presence of Mod E-file printouts or efile GRAPHIC print - Do Not Process or Tax Return Print (TRPRT) Do Not Process in lieu of an actual return.
Form 1120-X, with a signature on the line designated for the taxpayer's signature is attached to Form 1120. Form 1120-X must be for the same Tax Period as Form 1120.
Note: If the efile GRAPHIC print states "efile GRAPHIC print - Do Not Process" or the TRPRT print states TRPRT Print Do Not Process in the top margin, circle the words "Do Not Process."
(2) Do not correspond for a signature on "CII" tax returns with a Form 13596, Reprocessing Returns, attached. For processing instructions, see IRM 3.11.16.3.4.3, Correspondence Imaging Inventory (CII) Returns.
(3) If a signature is missing, correspond:
Note: See IRM 3.11.16.3.4.2, Issuing Correspondence, for returns that are incomplete and appear to be duplicate filings.
If | Then |
|---|---|
or
or
|
|
Note: Paper returns stating the return was rejected through the E-file system require a signature. Form 8879-CORP, E-file Authorization for Corporations, is not an acceptable signature substitute for a paper return (Form 8879-C/ Form 8879-I for 2021 and prior).
(4) If the jurat is altered or stricken (crossed out), see IRM 3.11.16.2.6, Frivolous Arguments.
(5) Accept a "signature declaration" (a signature with jurat obtained through IRS correspondence) if attached to the tax return.
If the "signature declaration" is altered or stricken (crossed out), see IRM 3.11.16.2.6, Frivolous Arguments.
If the taxpayer responds with a self-prepared "signature declaration," it must have the same language as the jurat on the tax return: e.g., "UNDER PENALTIES OF PERJURY, I DECLARE THAT I HAVE EXAMINED THIS RETURN INCLUDING ACCOMPANYING SCHEDULES AND STATEMENTS, AND TO THE BEST OF MY KNOWLEDGE AND BELIEF, IT IS TRUE, CORRECT, AND COMPLETE."
Form 8879-CORP, E-file Authorization for Corporations, is not an acceptable signature substitute for a paper return ( Form 8879-C/Form 8879-I for 2021 and prior).
(6) Tax examiners are not handwriting experts. 26 CFR 301.6064-1 allows the Service to presume that the signature on the tax return, statement or other document is the true signature of the person who actually signed the document.
Note: Do not accept a “✓” or “X” on the signature line as a valid taxpayer signature.
(7) The following types of signatures are not valid for corporate returns:
Faxed signatures
Exception: 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.
Electronic signatures
Docusign digital signatures
Typed font Signature
Exception: If one of the following returns are mailed between August 28, 2020 through October 31, 2025, accept a digital signature.
Form 1120-C
Form 1120-H
Form 1120-IC-DISC
Form 1120-FSC
Form 1120-L
Form 1120-ND
Form 1120-PC
Form 1120-RIC
Form 1120-REIT
Form 1120-SF
(8) Correspond one time for the signature.
♦Paid Preparer Checkbox Indicator♦
(1) The Paid Preparer Checkbox is located next to the taxpayer signature area. It indicates whether the taxpayer has elected to allow the Paid Preparer to answer questions about the return as it is processed.
(2) No action is required on amended returns.
(3) Take the following actions when an entry is present in the Paid Preparer Checkbox:
If | Then |
|---|---|
Only the "Yes" box is checked, | Take no action. |
| Circle the Paid Preparer's Phone Number if present. |
♦Paid Preparer Section♦
(1) The Paid Preparer section is located below the Signature area at the bottom of Form 1120.
♦Paid Preparer Tax Identification Number (PTIN)♦
(1) The Paid Preparer's Social Security Number (SSN) or Preparer's Tax Identification Number (PTIN) is located to the right of the Preparer's Signature in the PTIN box at the bottom-right corner of Form 1120.
(2) No action is required on amended returns.
(3) A valid PTIN begins with a "P," followed by an eight digit number (e.g., PXXXXXXXX). Circle the SSN/PTIN if it is invalid, all zeros or all nines.
♦Paid Preparer EIN♦
(1) The Preparer's EIN is located below the PTIN box at the bottom-right corner of Form 1120.
(2) No action is required on amended returns.
(3) The Preparer's EIN is a nine digit number. Circle the EIN if all zeros or all nines.
♦Paid Preparer Phone Number♦
(1) The Paid Preparer's Phone Number is located below the Paid Preparer's EIN at the bottom right hand corner of Form 1120.
(2) If the return is amended, no action is required.
(3) If the Preparer's Phone Number is more than 10 digits, no action is required.
(4) If the Preparer's Phone Number is illegible or less than 10 digits, circle the Phone Number.
Schedule C, Page 2 - Dividends, Inclusions and Special Deductions
(1) If an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on any of Lines 3, 6, 7, 8, 12, 13, 14, 15, 16a, 16b, 16c, 17, 18, and/or 19, edit Audit Code "2."
Note: For 2017 and prior, Schedule C, Lines 3, 6, 7, 8, 12, 13, 14, 15, and/or 16.
(2) If an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on any of Lines 3, 6, 7, 8, 12, 13, 14,15, 16a, 16b, 16c, 17, 18, and/or 19, edit Audit Code "7."
Note: For 2017 and prior, Schedule C, Lines 3, 6, 7, 8, 12, 13,14, 15, and/or 16.
Schedule J, Page 3 - Controlled Group Code / Personal Service Corporation Code / Tax Computation (201811 and prior)
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Edit Personal Service Corporation Code "2" above the checkbox on Line 1, Page 3, Schedule J if the Qualified Personal Service Corporation box located on Page 3, Schedule J, Line 2 is checked.
Note: If the box on Schedule J, Line 2 is checked, edit ABLM Code "400" on Form 1120, Page 1, see IRM 3.11.16.9.3, ABLM Code and Schedule M-3 Checkbox.
(3) Personal Service Corporation Code "2" takes priority over Controlled Group Codes "4" and "1" (described below).
(4) If both the Schedule J, Line 2 box and the Schedule J, Line 1 box are checked, edit Personal Service Corporation Code "2" and delete Schedule O (Form 1120) if significant entries are present.
(5) Edit Controlled Group Code "4" above the checkbox on Line 1, Page 3, Schedule J when ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ at least one of the following is present:
The box on Page 3, Schedule J, Line 1 is checked.
There is a sign that the taxpayer is a member of a controlled group as defined in IRC 1561 or IRC 1563.
Schedule O (Form 1120), Box 3a, 3b, 3d, or 5b is checked.
An allocation/apportionment schedule is attached. Some examples of the title of these schedules may be "apportionment plan," "apportionment consent plan," "consent to apportionment," "controlled group tax apportionment plan," "surtax apportionment plan," or "allocation schedule." Any attachment labeled as "controlled group tax calculation statement" is not an apportionment plan and not used to edit tax bracket amounts on Schedule O.
Note: If there is any doubt whether an attachment is a "Surtax Apportionment Plan," refer the document to the lead tax examiner.
(6) Edit Controlled Group Code "1" above the checkbox on Line 1, Page 3, Schedule J when ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ any of Code "4" conditions in paragraph (5)a through (5)d are present.
(7) If Controlled Group Code "4" or "1" is edited, process Schedule O (Form 1120), see IRM 3.11.16.11.48, Schedule O (Form 1120) - Consent Plan and Apportionment Schedule for a Controlled Group.
(8) If neither Controlled Group Code "4" or "1" is edited, delete Schedule O (Form 1120) if significant entries are present.
Schedule J, Line 1b - Tax from Form 1120-L (2024 revision)
(1) No editing required.
Schedule J, Line 1c - Section 1291 Tax from Form 8621 (2024 revision)
(1) No editing required.
Schedule J, Line 1d - Tax Adjustment from Form 8978 (2024 revision)
(1) No editing required.
Schedule J, Line 1e - Additional Tax Under Section 197(f) (2024 revision)
(1) No editing required.
Schedule J, Line 1f - Base Erosion Minimum Tax from Form 8991
(1) Follow the instructions below for Schedule J, Line 1f (Line 2 for 2023 and Line 3 for 2022 and prior):
If | And | Then |
|---|---|---|
Tax period is 201811 and prior, | Schedule J, Line 3 is blank and Form 4626 (revision 2017 and prior) is attached with an amount on Line 14, | Edit the amount from Line 14, Form 4626 to Schedule J, Line 2 (Line 3 for 2022 and prior). |
Tax period is 201811 and prior, | Schedule J, Line 3 has a significant entry and Form 4626 (revision 2017 and prior) is not attached, | Correspond. |
Tax period is 201812 and later, | Schedule J, Line 1f (Line 2 for 2023 and Line 3 for 2022 and prior) is blank and Form 8991, Tax on Base Erosion Payments of Taxpayers with Substantial Gross Receipts, is attached, | Do the following:
|
Tax period is 201812 and later, | Schedule J, Line 1f (Line 2 for 2023 and Line 3 for 2022 and prior) has a significant entry and Form 8991 is not attached, | Correspond. |
Schedule J, Line 1g - Amount from Form 4255, Part I, Line 3, Column (q) (2024 revision)
(1) Follow the instructions below for Schedule J, Line 1g, Amount from Form 4255 Part I, Line 3, Column (q):
If | And | Then |
|---|---|---|
Tax period is 202401 and later, | Schedule J, Line 1g has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 4255 is not attached, | Correspond. |
Tax period is 202401 and later, | Schedule J, Line 1g has a significant line entry and Form 4255 is attached, | Accept taxpayers entry. |
Schedule J, Line 1z - Other Chapter 1 Tax (2024 revision)
(1) Follow the instructions below for Schedule J, Line 1z, Other Chapter 1 Tax:
If | And | Then |
|---|---|---|
Tax period is 202401 and later, | Schedule J, Line 1z has a significant line entry, | Accept taxpayers entry. |
Schedule J, Line 3 - Corporate Alternative Minimum Tax (CAMT) (Tax Period 202301 and later)
(1) Edit RPC "N "if there is a significant amount on Schedule J, Line 3 or Form 4626 (revision 2023 and later) is attached.
(2) Correspond If a significant amount is present on Schedule J, Line 3, and Form 4626 (revision 2023 and later) is not attached.
Schedule J, Lines 5a and 5b - Credits
(1) The following general instructions apply to Schedule J, Lines 5a and 5b only:
If supporting documentation is missing for one or more credits ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Schedule J, Line 5a - Form 1118, Foreign Tax Credit
(1) If Schedule J, Line 5a, Foreign Tax Credit has an entry, check for Form 1118 or similar statement:
If | Then |
|---|---|
The entry on Line 5a is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 1118 is missing, | Correspond. |
The entry on Line 5a is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Edit CCC "P." |
There is an entry on Line 5a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Edit Audit Code "2." |
There is an entry on Line 5a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Edit Audit Code "7." |
Schedule J, Line 5b - Form 8834 Credit and Form 5735
(1) Schedule J, Line 5b, includes credits from Form 8834, Qualified Electric Vehicle Credit, and/or a write-in credit from Form 5735, American Samoa Economic Development Credit. If the Line 5b entry or the write-in entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present, take the following action:
If | And | Then |
|---|---|---|
The entry is for Form 8834 | Form 8834 is missing, | Correspond. |
The entry is for Form 5735 | Form 5735 is missing, | Correspond. |
Schedule J, Line 5c - General Business Credit (202301 and later)
(1) Per the Inflation Reduction Act of 2022 and the CHIPS and Science Act of 2022, the Form 3800 has changed significantly.
(2) For prior year returns, transcription of some credits is no longer needed. If a prior year return has significant amounts on Lines 1d, 1g, 1o, 1q, 1u, 1v, 1z, 1aa, 1bb or 1gg, no editing is required. See Exhibit 3.11.16-19 for complete conversion instructions.
(3) Question A - Corporate Alternative Minimum Tax (CAMT) and Base Erosion Anti-Abuse Tax (Beat) - No editing required, Data will enter:
"0" if no box is checked.
"1" if "Yes" box checked.
"2" if "No" box checked.
"3" if "Both" boxes checked.
(4) The following lines are transcribed from Parts I and II. No editing is required.
Part I, Checkbox LIne A
Part I, Line 1
Part I, Line 2
Part I, Line 3
Part I, Line 4
Part I, Line 5
Part II, Line 10b
Part II, Line 22
Part II, Line 24
Part II, Line 28
Part II, Line 30
Part II, Line 31
Part II, Line 32
Part II, Line 33
Part II, Line 34
Part II, Line 35
(5) Certain credits require additional transcription from Form 3800, Part III, Columns b, f, g, h, j.
(For 2023 Columns b, g, h, i and j were transcribed).
Form 3800, Part III, Line | Credit Form | Form Title | Form 3800 (2024 revision) Column(s) transcribed |
|---|---|---|---|
1a | Form 3468, Part II | Investment Credit | g |
1b | Form 7207 | Advanced Manufacturing Production Credit | b, f, g, h, j |
1c | Form 6765 | Credit for Increasing Research Activities | g |
1d | Form 3468, Part III | Investment Credit | b, f, g, h, j |
1e | Form 8826 | Disabled Access Credit | g |
1f | Form 8835, Part II | Renewable Electricity Production Credit | b, f, g |
1g | Form 7210 | Clean Hydrogen Production Credit | b, f, g, h, j |
1h | Form 8820 | Orphan Drug Credit | g |
1i | Form 8874 | New Markets Credit | g |
1j | Form 8881. Part I | Credit for Small Employer Pension Plan Startup Costs | g |
1k | Form 8882 | Credit for Employer-Provided Childcare Facilities and Services | g |
1l | Form 8864 (diesel) | Biodiesel and Renewable Diesel Fuels Credit | g |
1m | Form 8896, | Low Sulfur Diesel Fuel Production Credit | g |
1n | Form 8906 | Distilled Spirits Credit | g |
1o | Form 3468, Part IV | Investment Credit | b, g, h, j |
1p | Form 8908 | Energy Efficient Home Credit | g |
1q | Form 7218 | Clean Fuel Production Credit | b, f, g, h, j |
1r | Reserved Previously used for Form 8910 | Alternative Motor Vehicle Credit Note: This credit expired in 202411. | g |
1s | Form 8911, Part II | Alternative Fuel Vehicle Refueling Property Credit | b, f, g, h, j |
1t | Form 8830 | Enhanced Oil Recovery Credit | g |
1u | Form 7213, Part II | Nuclear Power Production Credit | b, f, g, h, j |
1v | Form 3468, Part V | Investment Credit | b, f, g, h, j |
1w | Form 8932 | Credit for Employer Differential Wage Payments | g |
1x | Form 8933 | Carbon Oxide Sequestration Credit | b, f, g, h, j |
1y | Form 8936, Part II | Clean Vehicle Credits | g |
1aa | Form 8936, Part V | Clean Vehicle Credits | b, g, h, j |
1bb | Form 8904 | Credit for Oil and Gas Production from Marginal Wells | g |
1cc | Form 7213, Part I | Nuclear Power Production Credit | g |
1dd | Form 8881, Part II | Credit for Small Employer Pension Plan Startup Costs | g |
1ee | Form 8881, Part III | Credit for Small Employer Pension Plan Startup Costs | g |
1ff | Form 8864, Line 8 | Biodiesel and Renewable Diesel Fuels Credit | g |
1gg | Form 7211 | Clean Electricity Production Credit | b, f, g, h, j |
1zz | Other | Other | g |
4a | Form 3468, Part VI | Investment Credit | b, f, g, h, j |
4b | Form 5884 | Work Opportunity Credit | g |
4c | Form 6478 | Biofuel Producer Credit | g |
4d | Form 8586 | Low Income Housing Credit | g |
4e | Form 8835, Part II | Renewable Electricity Production Credit | b, f, g, h, j |
4f | Form 8846 | Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips | g |
4g | Form 8900 | Qualified Railroad Track Maintenance Credit | g |
4h | Form 8941 | Credit for Small Employer Health Insurance Premiums | g |
4i | Form 6765, Eligible Small Business only | Credit for Increasing Research Activities | g |
4j | Form 8994 | Employer Credit for Paid Family and Medical Leave | g |
4k | Form 3468, Part VII | Rehabilitation Credit | g |
4z | Other |
| g |
(6) Edit a “1” in the bottom right margin of Form 3800, Page 4, Part III, when Form 3800, Part V, Column b has significant data. See Figure 3.11.16-21, Form 3800 Indicator.
(7) If Form 3800, General Business Credit, is required but missing, correspond. Form 3800 is required when a 2008 or later tax return has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Schedule J, Line 5c. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(8) Review the Schedule J, Line 5c for the following conditions:
If | And | Then |
|---|---|---|
Schedule J, Line 5c is blank, | Form 3800 has an entry on Line 38, | Edit the Line 38 amount to Schedule J, Line 5c. |
Schedule J, Line 5c has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Form 3800 is not attached, | Correspond. |
Schedule J, Line 5c and Form 3800, Line 38 do not match | The difference is not supported by another credit, | Edit the lesser of Schedule J, Line 5c and Line 38 to Schedule J, Line 5c. |
(9) Correspond when a business credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is not supported by the applicable form or if supporting documentation is missing for an unidentified amount on Schedule J, Line 5c.
Exception: For Tax Year 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1a, 1b, 1c, 1e, 1f, 1h, 1i, 1j, 1k, 1l, 1m, 1n, 1p, 1s, 1t, 1w, 1x, 1y, 1aa, 1bb, 1zz, 3, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (b) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2023 - Tax Year 2023 - If Form 3800, Part III, Line 1b, 1c, 1e, 1f, 1g, 1h, 1i, 1j, 1k, 1m, 1n, 1p, 1s, 1t, 1u, 1w, 1x, 1y, 1aa, 1bb, 1cc, 1dd, 1ee, 1ff, 1zz, 3, 4a, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (d) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1b, 1c, 1e, 1f, 1g, 1h, 1i, 1j, 1k, 1m, 1n, 1p, 1q, 1s, 1t, 1u, 1v, 1w, 1x, 1y, 1aa, 1bb, 1cc, 1dd, 1ee, 1ff, 1gg, 1zz, 3, 4a, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (c) has an EIN, do not correspond and continue to process the return.
Form 8844, Empowerment Zone Employment Credit
(1) Form 8844 is a high priority form.
(2) Form 8844 is required to be filed with the return when claiming the credit.
(3) Edit "1 - 1" in the left margin of Form 1120, near Line 12 when the Form 8844 is shown on:
Form 1120, Page 3, Schedule J, Line 5c.
Form 1120-C, Page 3, Schedule J, Line 5c.
Form 1120-F, Page 6, Schedule J, Line 5b.
Form 1120-L, Page 4, Schedule K, Line 5c.
Form 1120-PC, Page 1, Line 8c.
Form 1120-REIT, Page 3, Schedule J, Line 3c.
Form 1120-RIC, Page 2, Schedule J, Line 3c.
Form 3800, Part III, Line 3 has an entry.
Form 3800, Part II Line 22 has an entry.
(4) Edit a "1 - 1" in the left margin of Form 1120, near Line 12 if Form 8844 is attached even if dollar amounts are not present.
(Line 2 for Form 1120-F.)
Note: Editing "1 - 1" in the left margin of Form 1120, Line 12 allows Statistics of Income (SOI) a means of monitoring this credit. (HIGH PRIORITY)
(Line 2 for Form 1120-F)
(5) If an amount is present on Form 3800, Line 3 Column (g) (Column (j) for 2023) (Column (c) for 2022 and prior) or Form 1120, Schedule J, Line 5c for Form 8844, take the following actions:
If | Then |
|---|---|
Empowerment Zone Employment credit is≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but Form 8844 is not attached, | Correspond. |
Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 3, Column (b) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2023 - If Form 3800, Part III, Line 3, Column (d) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 3, Column (c) has an EIN, do not correspond and continue to process the return.
Form 8941, Credit for Small Employer Health Insurance Premiums
(1) Form 8941, Credit for Small Employer Health Insurance Premiums, must be filed with corporate tax returns when claiming Small Employer Health Insurance Premiums credit.
(2) If an amount is present on Form 3800, Part III, Line 4h Column (g) (Column (j) for 2023) (Column (c) for 2022 - 2011) or Form 1120, Schedule J, Line 5c for Form 8941:
If | Then |
|---|---|
Form 8941 is not attached, | Correspond. |
Form 8941 is present, | Place in sequence order if significant entries are present. |
Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 4h, Column (b) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2023 - If Form 3800, Part III, Line 4h, Column (d) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 4h, Column (c) has an EIN, do not correspond and continue to process the return.
Schedule J, Line 5d - Form 8827, Credit for Prior Year Minimum Tax - Corporations
(1) If Schedule J, Line 5d has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8827 is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Schedule J, Line 6 - Total Credits
(1) When editing Line 6, take the following action:
If | Then |
|---|---|
Line 6 is blank and there are entries on any of Lines 5a through 5f, | Add Lines 5a through 5f and enter on Line 6. |
There is no tax on Schedule J, Line 2, | "X" the Line 6 entry and "X" Lines 5a through 5f. |
Line 6 has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Lines 5a through 5f are blank, | Correspond for documentation to support the entry on Line 6. |
Schedule J, Line 8 - Personal Holding Company Tax
(1) If Schedule J, Line 8, Personal Holding Company Tax, has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Schedule 1120-PH is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Note: A significant entry on Schedule J, Line 8 would also require editing an ABLM Code, see IRM 3.11.16.9.3, ABLM Code and Schedule M-3 Checkbox.
Schedule J, Line 9a through 9z - Other Taxes
(1) This subsection has instructions for Schedule J, Lines 9a through 9z.
Schedule J, Line 9a - Amount from Form 4255, Part I, Line 3 Column (r)
(1) If an amount is present on Schedule J, Line 9a, Amount from Form 4255, Part I, Line 3 Column (r) or Form 4255 is attached:
If | Then |
|---|---|
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 4255 is not attached, | Correspond. |
Form 1120, Line 9a is blank and Form 4255 is attached, | Edit the amount from Form 4255 Line 3, Column (r), to Form 1120 Schedule J, Line 9a. |
Schedule J, Line 9b - Recapture of Low-Income Housing Credit (Form 8611)
(1) If an amount is present on Schedule J, Line 9b, Recapture of Low-Income Housing Credit, or Form 8611 is attached:
If | Then |
|---|---|
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8611 is not attached, | Correspond. |
Form 8611 is attached and Line 9b is blank, | Edit the amount from Line 14, Form 8611 to Schedule J, Line 9b. (Dotted portion of Schedule J, Line 7 of Form 1120-REIT.) |
More than one Form 8611 is attached, |
|
(2) Edit CCC "9" to Page 1 of Form 1120 in the income section when at least one of the following conditions exists:
Schedule J, Line 9b has an amount; or
Form 8611 is attached; or
Schedule J, Line 9c - Completed Long-Term Contract Look-Back Interest Due (Form 8697)
(1) If an amount is present on Schedule J, Line 9c, Completed Long-Term Contract Look-Back Interest Due, or Form 8697 is attached:
If | Then |
|---|---|
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8697 is not attached, | Correspond for missing Form 8697. |
Form 8697 is attached and the tax from Part I, Line 10 or Part II, Line 11 is shown on Schedule J, Line 9c, | Edit CCC "K." |
Form 8697 is attached and Schedule J, Line 9c is blank, |
|
Schedule J, Line 9d - Interest Due Under the Look-Back Method - Income Forecast Method (Form 8866)
(1) Form 8866, Interest Due Under the Look-Back Method - Income Forecast Method, is attached.
If | Then |
|---|---|
Form 8866, Line 9 has an entry, | Edit Tax Period and EIN on Form 8866. Detach Form 8866 and route to AM. |
Form 8866, Line 10 has an entry, | Edit the Line 10, amount to Schedule J, Line 9d. |
Schedule J, Line 9e - Alternative Tax on Qualifying Shipping Activities (Form 8902)
(1) If an amount is present on Schedule J, Line 9e, Alternative Tax on Qualifying Shipping Activities, or Form 8902 is attached:
If | Then |
|---|---|
Form 8902 is attached, | Edit Audit Code "2." |
Form 8902 is attached and Schedule J, Line 9e is blank, | Edit the amount from Line 30, Form 8902 to Schedule J, Line 9e. |
Schedule J, Line 9f - Interest/Tax Due Under Section 453A(c) (2023 and later revisions)
(1) No editing required.
Note: Form 1120, Schedule J, Line 9f on 2022 - 2020 revisions read "Interest/Tax Due Under Section 453A(c) and/or Section 453(l)". No editing required.
Schedule J, Line 9g - Interest/Tax Due Under Section 453(l) (2023 and later revisions)
(1) No editing required.
Schedule J, Line 9g - Other (2022 - 2020 revisions
(1) For Tax Period 202201-202212, if a significant amount is present on Line 9g and the taxpayer writes CAMT or IRA AMT or indicates the amount is for Corporate AMT, completely edit the return and give to the lead. The lead will:
Notify P&A that a return has been found (P&A will scan the Form 1120, pages 1 through 6 and any attachment with the new AMT calculation and email a copy to an LB&I Point of Contact (POC)).
Edit an action trail on the return.
Rebatch the return with "CAMT" in the batch ID.
Continue processing.
(2) For Tax Period other than 202201-202212, no editing is required.
Schedule J, Line 11 - Total Tax (2023 and prior revisions)
(1) Form 1120, Schedule J, Part I, Line 11 may have "add on" taxes that will be identified by an explanation in the dotted portion to the left of Line 11.
If the only entry on Form 1120, Schedule J, Part I, is Line 11, edit the amount to Schedule J, Line 1.
If any identifiable "add on" taxes are misplaced on Lines 3, 8, or 9, "X" them ensure that they have been included in Line 31, Total Tax on Page 1 of the Form 1120.
Schedule J, Line 11a - Total Tax Before Deferred Taxes (2024 revision)
(1) Line 11a, Total Tax Before Deferred Taxes, is the sum of Form 1120, Schedule J, Line 7, Line 8, and Line 10.
(2) If Line 11a is blank and there are entries on Line 7, Line 8 and/or Line 10 edit the sum of those lines on Line 11a.
Schedule J, Line 11b - Deferred Tax on the Corporation’s Share of Undistributed Earnings of a Qualified Electing Fund (2024 revision)
(1) No editing required.
Schedule J, Line 11c - Deferred LIFO Recapture Tax (Section 1363(d)) (2024 revision)
(1) No editing required.
Schedule J, Line 12 - Total Tax (2024 revision)
(1) Form 1120, Schedule J, Line 12 is computed by subtracting the sum of Line 11b and Line 11c from Line 11a. This total is transferred to Form 1120, page 1, Line 31.
(2) If the only entry on Form 1120, Schedule J, is Line 12, edit the amount to Line 11a and Line 31, Total Tax on Page 1 of the Form 1120.
Schedule J, Line 12 - Reserved
(1) Line 12- Schedule J, Part II, Line 12 - Net 965 Tax Liability Paid for the Reporting Year (revisions 2018 through 2020),
(2) The instructions in this subsection only apply to Tax Period 201712 through 202012.
(3) If blank, enter from the following lines from Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts:
Reporting Tax Year | Form 965-B |
|---|---|
2017 | Part II, Column (k), Line 1 |
2018 | Part II, Column (k), Line 2 |
2019 | Part II, Column (k), Line 3 |
2020 | Part II, Column (k), Line 4 |
(4) Edit CCC "J" and Action Code "460."
Schedule J, (Part II for 2023) (Part III for 2022-2018) Lines 13 - 23
(1) This subsection has instructions for Schedule J, (Part II for 2023) (Part III for 2022-2018) Lines 13 through 23 (Line 22 for 2017-2011).
Schedule J, Line 13 - Preceding Year’s Overpayment Credited to the Current Year (2024 revision)
(1) No editing required.
Schedule J, Line 14 - Current Year’s Estimated Tax Payments (2024 revision)
(1) No editing required.
Schedule J, (Part II for 2023) (Part III for 2022-2018) Line 14 - Estimated Tax Payments
(1) IRC 847 Deduction - The instructions in this subsection only apply to Tax Period 201812 and prior. For Tax Period 201901 and later, no action is needed.
(2) If the Tax Period is 201812 and prior and the taxpayer notates "Section 847" or reports SETP on Schedule J, Part II (Part III for 2022-2018), Line 14 (Line 13 for 2017 - 2011) or "Form 8816" is attached, see IRM 3.11.16.3.10, IRC 847 Deduction.
Schedule J, Line 15 - Current Year’s Refund Applied for on Form 4466 (2024 revision)
(1) If there is an entry on Line 15, see IRM 3.11.16.9.1.15, CCC "O" - Module Freeze.
Schedule J, Line 16 - Reserved for Future Use (2024 revision)
(1) No editing required.
Schedule J, (Part II for 2023) (Part III for 2022-2018) Line 16 - Payments (2023 and prior revisions)
(1) If Schedule J, (Part II for 2023) (Part III for 2022-2018) Line 16 (Line 15 for 2017-2011) is blank, add Lines 13 (Line 12 for 2017-2011) and 14 (Line 13 for 2017-2011). Subtract Line 15 (Line 14 for 2017-2011) and enter the total amount on Line 16 (Line 15 for 2017-2011). If there is an entry on Line 15 (Line 14 for 2017-2011), see IRM 3.11.16.9.1.15, CCC "O" - Module Freeze.
Schedule J, (Part II for 2023) (Part III for 2022-2018) Line 17 - Tax Deposited with Form 7004
(1) Accept taxpayer's entry.
(2) If the taxpayer indicates a Form 1138, Extension of Time for Payment of Taxes by a Corporation Expecting a Net Operating Loss Carryback, credit on Line 17 (Line 16 for 2017-2011), disallow and delete amount of credit from Line 17 (Line 16 for 2017-2011).
Schedule J, (Part II for 2023) (Part III for 2022-2018) Line 18 - Withholding
(1) If the taxpayer has claimed backup withholding ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Schedule J, (Part II for 2023) (Part III for 2022-2018) Line 18 (Line 17 for 2017-2011) and Form 1099 is not attached, correspond using Letter 118C, Corporate Return Incomplete for Processing: Form 1120, Form 1120 Series, Form 1120-S. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Schedule J, (Part II for 2023) (Part III for 2022-2018) Line 19 - Total Payments
(1) If Line 19 (Line 18 for 2017-2011) is the only entry for Lines 13 through 19 (Lines 12 through 18 for 2017-2011), arrow the amount to Line 14 (Line 16 for 2023 - 2018) (Line 15 for 2017 - 2011).
Schedule J, (Part II for 2023) (Part III for 2022-2018) Line 20a - Form 2439
(1) Compare Form 1120, Schedule J, Line 20a (Line 19a for 2017-2011) to Form 2439, Line 2:
If | Then |
|---|---|
The Undistributed Capital Gain Credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 2439 is missing, | Correspond. |
Form 2439 shows a lesser amount, | Place an "X" to the left of the entry on Schedule J, Part II, (Part III for 2022-2018) Line 20a (Line 19a for 2017 - 2011) Edit the lesser amount to the left of the "X." |
Form 2439 shows a larger amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, | Correspond. |
Schedule J, (Part II for 2023) (Part III for 2022-2018) Line 20b - Form 4136
(1) If Line 20b (Line 19b for 2017 - 2011) has a significant entry and Form 4136 is not present, correspond for the missing Form 4136. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(2) For processing instructions, see IRM 3.11.16.19, Form 4136 - Credit for Federal Tax Paid on Fuels.
Schedule J, (Part II for 2023) (Part III for 2022-2018) Line 20c - Reserved for Future Use
(1) Schedule J, Line 20c- Credit for Tax Withheld Under Chapter 3 or 4 from Form 1042-S, Form 8805, or Form 8288.
(2) Schedule J, Line 20c - Reserved for future use on the 2020 - 2023 revisions of Form 1120.
(3) For 2019 through 2012 revisions, if ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8827 must be attached to substantiate the credit. Correspond for missing forms to substantiate the credit.
(4) For 2011 and prior, if ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ either Form 3800 or Form 8827 must be attached to substantiate the credit. Correspond for missing forms to substantiate the credit.
Schedule J, Part III, Line 20d - Other (2022 - 2018 revisions)
(1) For 202201 - 202212, if a significant amount is present and "IRA22DPE" is notated, edit RPC "J" and give the return to the lead. Otherwise, accept taxpayer’s entry.
Schedule J, Line 20z - Other (2023 and later revisions)
(1) The taxpayer may report the following credits on Schedule J, Part II, Line 20z (Line 20i for 2022 - 2018):
Credit for Tax on ozone-depleting chemicals. The taxpayer may also notate "Section 4682(g)(2)".
Credit under section 960(c) (section 960(b) for pre-2018 tax years of foreign corporations).
Section 1341 Credit for Repayments of Amounts Included in Income from Earlier Years. Accept the taxpayers amount.
Note: The Section 1341 credit amount may be credit elect. If there is a credit elect amount present in the "Credited to estimated tax" line, then accept the credit elect amount for Section 1341.
Schedule J, Part II Line 22 - Elective Payment Election (2023)
(1) Accept taxpayer entry.
Schedule J, Part III (202012 - 201712) Line 22 - Net 965 Tax Liability.
(1) The instructions in this subsection apply only to Tax Period 201712 through 202012.
(2) The amount on Schedule J, Part III, Line 22 is edited from Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, as follows:
Reporting Tax Year | Form 965-B |
|---|---|
2017 | Part II, Column (d), Line 1 |
2018 | Part II, Column (d), Line 2 |
2019 | Part II, Column (d), Line 3 |
2020 | Part II, Column (d), Line 4 |
(3) Edit CCC "J" and Action Code "460."
Schedule J, (Part II for 2023) (Part III for 2022-2018) Line 23 - Total Payments and Credits
(1) If Line 23 (Line 21 for 2017 - 2011) is the only entry for Lines 13 through 23 (Lines 12 through 21 for 2017 - 2011), arrow the amount to Line 14 (Line 16 for 2023 - 2018) (Line 15 for 2017 - 2011).
Accounting Method Code
(1) The Accounting Method Code is transcribed from the taxpayer’s response to the boxes on Form 1120, Schedule K, Line 1.
(2) No editing is required for Code and Edit
Schedule K, Line 2a - NAICS Code
(1) The Principal Business Activity (PBA) Code is based on the North American Industry Classification System Code (NAICS). These codes are a high priority to the Service. It is critical data for Statistics of Income, Examination, Research and other Service organizations.
(2) The NAICS Code is a four or six- digit code on Schedule K, Line 2a of Form 1120.
(3) A NAICS Code is required on all Forms 1120 (Form 1120-C, Form 1120-F, and Form 1120-FSC).
Exception: Do not edit a NAICS Code on "G" coded returns (amended returns).
(4) Only one NAICS Code can be used on the return. Edit the NAICS Code as follows:
If | Then |
|---|---|
A legible six digit NAICS Code is shown on Schedule K, Line 2a, | No editing is required. |
A legible four digit NAICS Code is shown on Schedule K, Line 2a, | No editing is required. |
There is more than one NAICS Code on Schedule K, Line 2a, | Circle all but the first NAICS Code listed. |
Schedule K, Line 2a is blank, illegible, or other than four or six digits, | Edit NAICS Code "999999." |
Schedule K, Question 3
(1) If Schedule K, Question 3 meets one of the following conditions, a Name Control and EIN must be edited.
If | And | Then |
|---|---|---|
Question 3 is checked "Yes," or both the "Yes" and "No" boxes are checked, | The name and EIN is the same as the return name and/or EIN, |
|
Question 3 is checked "Yes" or both the "Yes" and "No" boxes are checked, | The name and/or EIN is different from the return name and/or EIN, | Underline the Name Control and TIN on Line 3. Note: If something other than a corporation name and/or EIN is present on Line 3, circle that information. |
Question 3 is checked "Yes" or both the "Yes" and "No" boxes are checked, | There is no Name and/or EIN present on Line 3, |
Note: If something other than a corporation name and/or EIN is present on Line 3, circle that information. |
Question 3 is checked "No" or neither box is checked, | A corporation name and/or EIN is present (must be different than that on the return), |
Note: If something other than a corporation name and/or EIN is present on Line 3, circle that information. |
Question 3 is answered "No" or neither box is checked, | A corporation name and EIN are not present, | No editing is required. |
Question 3 is answered "No" or neither box is checked, | A corporation name and EIN are the same as the return name and/or EIN, | Circle the name and/or EIN. |
Schedule K, Line 7c - Number of Form 5472
(1) No entry is required for Schedule K, Line 7c unless Form 5472 is present.
(2) Edit Line 7c as follows:
If | And | Then |
|---|---|---|
A number is present for Schedule K, Line 7c, |
| No editing required. |
Schedule K, Line 7c is blank, | Form(s) 5472 is attached, | Edit the number of Forms 5472 in the dotted line area of Line 7c. |
Form 5472 is attached, | Schedule K is not present, | Dummy a Schedule K and edit the number of Forms 5472 to Schedule K, Line 7c. |
Note: If a Form 5472 is attached to a blank (no tax data), Form 1120, do not process the Form 1120. Send the Form 1120 and Form 5472 to SOI at the following address:
Internal Revenue Service
1973 N Rulon White Blvd.
PIN Unit, Stop 6112
Ogden, UT 84201-0012
Note: Foreign-owned domestic disregarded entities are instructed to attach the Form 5472 to a pro forma Form 1120. These entities are not required to file a Form 1120 and the return will not be processed.
Schedule K, Question 13
(1) This is not a transcription line and does not require editing. If the "Yes" box is checked for this question it is a sign that the taxpayer is not required to complete Schedule L, Balance Sheet entries.
Schedule K, Question 16
(1) Data will enter a "1" if the "Yes" box is checked.
(2) No editing is required.
Schedule K, Question 17
(1) Data will enter a "1" if the "Yes" box is checked.
(2) No editing is required.
Schedule K, Question 18
(1) Data will enter a "1" if the "Yes" box is checked.
(2) No editing is required.
Schedule K, Question 25 (Form 8996 - Qualified Opportunity Fund)
(1) If Form 1120, Schedule K, Question 25, "Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund" is answered "Yes," search attachments for Form 8996. If Form 8996 is attached with an amount in Part III, Line 15, edit the amount to Schedule K, Question 25. Form 8996 Revisions
Prior Year Revision | Line |
|---|---|
2020 and later | Part III, Line 15 |
2019 | Part III, Line 14 |
2018 and 2017 | Part III, Line 13 |
(2) See IRM 3.11.16.17, Form 8996 - Qualified Opportunity Fund, for transcription lines.
(3) If Form 8996, Qualified Opportunity Fund, is attached, edit Return Processing Code (RPC) "6," see IRM 3.11.16.9.2, Return Processing Code (RPC), for more information.
Schedule K, Question 27 (Digital Assets)
(1) No editing is required.
(2) Data will enter:
"0" if no box is checked.
"1" if "Yes" box checked.
"2" if "No" box checked.
"3" if "Both" boxes checked.
Schedule K, Lines 29a, 29b and 29c (Corporate AMT)
(1) If Question 29b is marked "Yes" or Question 29c is marked "No", Form 4626 must be attached. Correspond if Form 4626 is not attached. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Note: Do not correspond for Form 4626 if the entire return is non-taxable (e.g., the return is zeros, blank, shows no tax data etc.).Continue processing the return.
(2) Data will enter:
"0" if no box is checked.
"1" if "Yes" box checked.
"2" if "No" box checked.
"3" if "Both" boxes checked.
Schedule K, Lines 30a, 30b and 30c (Stock Buy Back)
(1) No editing is required.
(2) Data will enter:
"0" if no box is checked.
"1" if "Yes" box checked.
"2" if "No" box checked.
"3" if "Both" boxes checked.
Schedule K, Line 31 (Parent of Consolidated Group)
(1) No editing is required.
(2) Data will enter:
"0" if no box is checked.
"1" if "Yes" box checked.
"2" if "No" box checked.
"3" if "Both" boxes checked.
Schedule L, Balance Sheet
(1) This subsection provides instructions for processing the Balance Sheet. The Balance Sheet is found on Form 1120, Page 6 (Page 5 for 2017 and prior).
Blank or Missing Schedule L
(1) Use the following chart for a Balance sheet that is blank, no significant entries (e.g., zeros) or missing and there is no attachment present with Balance Sheet entries.
Note: The following chart is listed in "Priority" order.
If | And | Then |
|---|---|---|
The return is "Amended," |
| Do not correspond. |
The return is "Final," |
| Do not correspond. |
There are no "significant entries" on Form 1120, Page 1, Lines 1 through 27, |
| Do not correspond. |
Form 1120, Page 1, Box D is less than $250,000, and Total Receipts (Line 1a plus Lines 4 through 10) are less than $250,000, |
| Do not correspond. |
The "Yes" box is checked on Form 1120, Schedule K, Question 13, | Form 1120, Page 1, Box D is $250,000 or more, or Total Receipts (Line 1a plus Lines 4 through 10) are $250,000 or more, | Do not correspond. Edit a "1" to Schedule L, Line 15(d). Note: Dummy a Schedule L if necessary. |
The "cash" box on Schedule K is checked or the taxpayer has notated "Single Entry", "See Books," "Balance Sheet not available," or similar entry, | Form 1120, Page 1, Box D is $250,000 or more, or Total Receipts (Line 1a plus Lines 4 through 10) are $250,000 or more, | Do Not correspond. Edit a "1" to Schedule L, Line 15(d). Note: Dummy a Schedule L if necessary. |
Form 1120, Page 1, Box D is $250,000 or more, or Total Receipts (Line 1a plus Lines 4 through 10) are $250,000 or more, |
| Correspond for Schedule L. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
(2) If Schedule L is required and blank or missing, but an attachment is present with significant Schedule L amounts, edit the applicable line entries from the attachment. If necessary insert a blank Schedule L to edit the applicable entries. Then follow the instructions in IRM 3.11.16.11.46.2, Editing a Balance Sheet with Significant Entries. See Figure 3.11.16-22, Schedule L Balance Sheet.
Editing a Balance Sheet with Significant Entries
(1) To determine if editing a Balance Sheet that has significant entries is necessary follow the chart below:
Note: The following chart is listed in "Priority" order.
If | And | Then |
|---|---|---|
The return is "Amended," |
| No action is required. The Balance sheet will not be transcribed. |
The return is "Final," |
| Delete the Balance Sheet. |
There are no "significant entries" on Form 1120, Page 1, Lines 1 through 27, |
| Delete the Balance Sheet. |
The "Yes" box is checked on Form 1120, Schedule K, Question 13, | Form 1120, Page 1, Box D is less than $250,000, and Total Receipts (Line 1a plus Lines 4 through 10) are less than $250,000, | Delete the Balance Sheet. |
None of these conditions exist, |
| Continue editing the Balance Sheet. |
(2) Place Page 6 (Page 5 for 2017 and prior), Schedule L in sequence order when the Balance Sheet is required.
(3) Edit Balance Sheet amounts in dollars only.
(4) The following lines are transcribed fields:
Note: Letters in brackets "( )" designate columns.
Trade Notes and Accounts Receivable - Ending Schedule L, Line 2a(c) (positive/negative)
Loans to Shareholders - Ending Schedule L, Line 7(d) (positive/negative)
Less Accumulated Depreciation - Ending Schedule L, Line 10b(d) (positive)
Total Assets - Beginning Schedule L, Line 15(b) (positive/negative)
Total Assets - Ending Schedule L, Line 15(d) (positive/negative)
Other Current Liabilities - Ending Schedule L, Line 18(d) (positive/negative)
Loans from Shareholders - Ending Schedule L, Line 19(d) (positive/negative)
Other Liabilities - Ending Schedule L, Line 21(d) (positive/negative)
Preferred Stock - Schedule L, Line 22a(a) (positive)
Preferred Stock - Schedule L, Line 22a(c) (positive)
Common Stock - Schedule L, Line 22b(a) (positive)
Common Stock - Schedule L, Line 22b(b) (positive)
Common Stock - Schedule L, Line 22b(c) (positive)
Capital Stock - Ending Schedule L, Line 22b(d) (positive)
Retained Earnings - Unappropriated - Beginning Schedule L, Line 25(b) (positive/negative)
Loss cost of treasury stock - Beginning Schedule L, Line 27(b) (positive/negative)
Loss cost of treasury stock - Ending Schedule L, Line 27(d) (positive/negative)
Total Liabilities - Ending Schedule L, Line 28(d) (positive)
(5) When it is necessary to edit Schedule L, Balance Sheet entries, follow the instructions below:
"X" negative entries on Lines 10b(d), 22a(a), 22a(c), 22b(a), 22b (c), 22b(d), and 28(d). Accept negative entries on Lines 2a(c), 7(d), 15(b), 15(d), 18(d), 19(d), 21(d), 25(b), 27(b) and 27(d) only.
If line titles on Schedule L have been changed, edit the items which are to be perfected to their proper location on the return.
Edit lines as follows:
If | And | Then |
|---|---|---|
There is no entry on Line 2a, Column (c), | Line 2b, Column (c) has an entry, |
|
There is no entry on Line 2a, Column (c), | Line 2b, Column (c) is blank, |
|
There is no entry on Line 10b, Column (d), |
|
|
There is no entry on Line 15, Column (b), | Lines 2b, 10b, 11b, and 13b, Column (b) are blank, | Use right Column (a) entries (if present) to compute Column (b) entries. |
There is no entry on Line 15, Column (b), | Entries are present on Lines 1 through 14, Column (b), |
|
There is no entry on Line 15, Column (d), | Lines 2b, 10b, 11b, and 13b, Column (d) are blank, | Use right Column (c) entries (if present) to compute Column (d) entries. |
There is no entry on Line 15, Column (d), | Entries are present on Lines 1 through 14, Column (d), |
|
After computing Balance Sheet, Line 15, Column (d) is still blank, zero, dash, "none" or "N/A," | Form 1120, Page 1, Box D is $250,000 or more, or Total Receipts (Line 1a plus Lines 4 through 10) are $250,000 or more, | Edit a "1" on Line 15(d). |
If Line 22b, Column (d) is blank, |
|
|
There is no entry on Line 28, Column (d), |
|
|
Schedule N (Form 1120) - Foreign Operations of U.S. Corporations
(1) Schedule N (Form 1120), Foreign Operations of U.S. Corporations is valid for Tax Period beginning 01-01-2000. Delete Schedule N if the Tax Period begins before 01-01-2000.
(2) Corporations that, at any time during the tax year, have assets in or operate a business in a Foreign Country or U.S. possession may have to file Schedule N (Form 1120) with Form 1120, Form 1120-C, Form 1120-L, Form 1120-PC, Form 1120-REIT, and Form 1120-RIC.
(3) Do not correspond if Schedule N is missing. Dummy a Schedule N and edit the applicable entries when Form 5471, Form 8865, or Form 8873 are attached to the tax return.
(4) If Schedule N is present and has no entries, do not correspond.
(5) If more than one Schedule N is attached, combine the information from all Schedules N, including all subsidiaries and:
Edit to the first Schedule N that has the EIN of the return being processed. "Staple up" any remaining Schedules N, or
Dummy and edit a Schedule N, for the parent return if one is not present on a consolidated return.
Schedule N, Line 1 - Form 8858, Foreign Disregarded Entities
(1) Beginning Tax Period 2004 Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs), will be required to be filed by U.S. persons that are tax owners of Foreign Disregarded Entities.
(2) Edit Audit Code "2" if:
Schedule N, Question 1a is answered "Yes."
Form 8858 is present.
Schedule N, Line 2 - Number of Forms 8865
(1) No entry is required for Schedule N, Line 2 unless Form 8865 is present.
(2) If Form 8865, Schedule G is attached, edit RPC "E."
(3) If Form 8865, Schedule H is attached, edit RPC "F."
(4) Edit Line 2 as follows:
If | And | Then |
|---|---|---|
A number is present for Schedule N, Question 2, |
| Take no further action. |
Schedule N, Line 2 is blank, | Form(s) 8865 is attached, | Edit the number of Forms 8865 in the dotted line area of Question 2. |
Form 8865 is attached, | Schedule N is not present, | Dummy a Schedule N and edit the number of Forms 8865 to Schedule N, Line 2. |
(5) For Form 1120, Form 1120-L, Form 1120-PC, Form 1120-REIT, and Form 1120-RIC, edit Audit Code "2" if Form 8865 is attached, see IRM 3.11.16.10.1, Audit Codes.
Schedule N, Line 3 - Form 8865 Question
(1) For Form 1120, Form 1120-PC, Form 1120-REIT, and Form 1120-RIC, edit Audit Code "2" if Schedule N, Question 3 is answered "Yes" or Form 8865 is attached, see IRM 3.11.16.10.1, Audit Codes.
Schedule N, Lines 4a and 4b- Form 5471, Controlled Foreign Corporation
(1) Line 4a - Reserved for future use.
For prior year returns (2019 and prior revisions), edit Audit Code "2" if Schedule N, Question 4a is answered "Yes."
(2) Line 4b - Edit Audit Code "2" if Form 5471 is attached, see IRM 3.11.16.10.1, Audit Codes.
(3) Edit Return Processing Codes as follows:
If | Then |
|---|---|
Form 5471, Schedule E, Income, War Profits, and Excess Profits Taxes Paid or Accrued, is attached, | Edit RPC "A." |
Form 5471, Schedule H, Current Earnings and Profits, is attached, | Edit RPC "B." |
Form 5471, Schedule I-1, Information for Global Intangible Low-Taxed Income, is attached, | Edit RPC "C." |
Form 5471, Schedule P, Previously Taxed Earnings and Profits of U.S. Shareholder of Certain Foreign Corporations, is attached, | Edit RPC "D." |
Form 5471, Schedule G-1, Cost Sharing Arrangement is attached, | Edit RPC "G." |
(4) No entry is required for Schedule N, Line 4b unless Form 5471 is present.
(5) Edit Schedule N, Line 4b as follows:
If | And | Then |
|---|---|---|
A number is present for Schedule N, Line 4b, |
| Take no further action. |
Schedule N, Line 4b is blank, | Form(s) 5471 is attached, | Edit the number of Forms 5471 in the dotted line area of Question 4b. Note: Document Perfection is responsible for determining the number of any and all Form(s) 5471 received, whether attached to a parent return in a consolidated group, or found as an attachment to a subsidiary return. |
Form 5471 is attached, | Schedule N is not present, | Dummy a Schedule N and edit the number of Forms 5471 to Schedule N, Line 4b. |
Schedule N, Line 5 - Form 3520 Question
(1) For Form 1120, Form 1120-PC, Form 1120-REIT, and Form 1120-RIC, edit Audit Code "2" if Schedule N, Question 5 is answered "Yes" or Form 3520 is attached, see IRM 3.11.16.10.1, Audit Codes.
Schedule N, Line 6b - Foreign Country Code
(1) Edit Schedule N, Line 6b as follows:
If | Then |
|---|---|
The taxpayer has entered the name of a Foreign Country in Question 6b, | Edit the two letter "Country Code" to the left of Question 6b. See Acceptable Foreign Countries in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes, and Countries. Exception: Edit Country Code "OC" if the foreign country is not listed in Document 7475 or a U.S. Possession is listed on Box A. |
No Foreign Country is present or "US," "USA," "America" or similar reference to the United States is present, and Box 6a is checked "Yes," | Edit Country Code, "OC." |
More than one Foreign Country is present, | Edit the Country Code of the first Foreign Country shown. |
Note: Use "UK" for England, Northern Ireland, Scotland, and Wales. Also, "Holland" is not an official country name, but is part of The Netherlands, "NL."
Schedule N, Line 7a - Form 8873 Question
(1) For Form 1120, Form 1120-L, Form 1120-PC, Form 1120-REIT, and Form 1120-RIC, edit Audit Code "2" if Schedule N, Question 7a is answered "Yes," see IRM 3.11.16.10.1, Audit Codes.
Schedule N, Line 7b - Number of Forms 8873
(1) No entry is required for Schedule N, Line 7b unless Form 8873 is present.
Note: Input of Command Code (CC) REQ77 with IDRS Transaction Code TC 971 and right IDRS Action Code (depending on which election has been made) may be needed when Form 8873 is present, see IRM 3.11.16.12, Form 8873 - Extraterritorial Income Exclusion.
(2) Edit Schedule N, Line 7b as follows:
If | And | Then |
|---|---|---|
A number is present for Schedule N, Question 7b, | Form(s) 8873 is attached, | Process Form 8873.
|
A number is present for Schedule N, Question 7b, | Form(s) 8873 are not attached, | Take no further action. |
Schedule N, Line 7b is blank, | Form(s) 8873 is attached, |
|
Form 8873 is attached, | Schedule N is not present, |
|
Schedule N, Line 7c - Total Extraterritorial Income Exclusion
(1) No entry is required for Schedule N, Line 7c unless Form 8873 is present.
(2) Edit Schedule N, Line 7c as follows:
If | And | Then |
|---|---|---|
An amount is present for Schedule N, Question 7c, | Form 8873 is attached, | Process Form 8873.
|
An amount is present for Schedule N, Question 7c, | Form 8873 is not attached, | Take no further action. |
Schedule N, Line 7c is blank, | Form(s) 8873 is attached, |
|
Form 8873 is present with a significant entry on Line 52, | Schedule N is not attached, |
|
Reminder: Form 8873, Extraterritorial Income Exclusion, requires TC "971" input, see IRM 3.11.16.12, Form 8873 - Extraterritorial Income Exclusion.
Schedule N, Line 8 - Form 8938, Statement of Specified Foreign Financial Assets
(1) For Tax Year (TY) 202201 and later, Form 8938, Statement of Specified Foreign Financial Assets, will be transcribed into the General Purpose Program (GPP) database.
Note: These instructions only apply to Form 1120.
(2) Process Form 8938 with the following criteria:
The Tax Period Beginning on Form 1120 is 202201 or later and,
Form 8938 is a November 2021 revision and,
Form 8938 has significant entries.
(3) If Form 8938 is attached, but does not meet the above criteria, edit CCC "2" and continue normal processing of the Form 1120. Do not sequence the form to the back of the return, or place the form in a designated basket.
(4) If Form 8938 is attached and meets the criteria in paragraph (2), process Form 8938 per the instructions below:
Completely edit Form 1120.
Edit CCC "2."
Pull the Form 8938 from the return and sequence to the back of the last page of Form 1120 (after schedules and attachment pages), attaching the Form 8938 so that it is back- to- back with the parent return.
Place the Form 1120 in a designated basket.
Only one Form 8938, Pages 1 and 2, can be processed. If multiple Forms 8938 are attached, select the form that has the highest account value in Part V, Line 23 (Line 4 for revision 2020 and prior) or highest asset value in Part VI, Line 32 (Line 4 for revision 2020 and prior) and delete the others.
Note: The Form 8938 can have multiple "Additional or Continuation Statements." Do not confuse the multiple additional or continuation statements with multiple Forms 8938.
(5) Form 1120 with Form 8938 attached must be batched separately. The transcription of Form 8938 will occur under Program Code 43300 after the parent Form 1120 has been transcribed using normal procedures.
Schedule O (Form 1120) - Consent Plan and Apportionment Schedule for a Controlled Group
(1) The instructions in this subsection (paragraphs 2 through 4) only apply to Tax Period 201811 and prior. If a Schedule O is attached to a Form 1120 for Tax Period 201812 and later, do the following:
If | Then |
|---|---|
Schedule O is in sequence order, | Line through Schedule O, Parts II and III (old revision), Part II (new revision). |
Schedule O is not in sequence order, | No action needed. |
(2) This subsection includes instructions for processing Schedule O (Form 1120).
(3) Schedule O (Form 1120) replaces the Controlled Group tax computation previously included on Schedule J, Lines 2a(1) through 2b(2) for 2005 and prior tax returns.
(4) If Controlled Group Code "1" or "4" is edited on a prior year return, dummy a Schedule O and edit significant positive amounts as follows:
Schedule J, Line 2a(1) to Schedule O, Part II, Line 1, Column (c).
Schedule J, Line 2a(2) to Schedule O, Part II, Line 1, Column (d).
Schedule J, Line 2a(3) to Schedule O, Part II, Line 1, Column (e).
Schedule J, Line 2b(1) to Schedule O, Part III, Line 1, Column (f).
Schedule J, Line 2b(2) to Schedule O, Part III, Line 1, Column (g).
Schedule O, Part II, Line 1 - Taxable Income Apportionment
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Edit Schedule O, Part II, Line 1 as follows:
If | And | Then |
|---|---|---|
Schedule O is attached and the parent corporation's taxable income apportionment amounts are present in Part II, | The amounts are entered on Line 1, | "X" any negative entries on Line 1, Columns (c), (d), or (e). |
Schedule O is attached and the parent corporation's taxable income apportionment amounts are present in Part II, | The amounts are entered on a line other than Line 1, |
|
A Controlled Group Code was edited; there are no entries on any of Schedule O, Part II, Line 1, Columns (c), (d), and (e), or Schedule O is missing, Note: A taxpayer may be a member of a controlled group with an allocation of zero ("0") in each of the three taxable income brackets. In this case no entry will be necessary on Line 1, Part II, Columns (c), (d), and (e); | Taxable income brackets are found on an attachment, | Edit the positive taxable income bracket amounts to Schedule O, Line 1, Columns (c), (d), and (e). Note: Dummy a Schedule O if needed. |
A Controlled Group Code was edited; there are no entries on any of Schedule O, Part II, Line 1, Columns (c), (d), and (e), or Schedule O is missing, Note: A taxpayer may be a member of a controlled group with an allocation of zero ("0") in each of the three taxable income brackets. In this case no entry will be necessary on Line 1, Part II, Columns (c), (d), and (e); | No taxable income brackets are found, | Correspond for taxable income bracket amounts.
|
No Controlled Group Code was edited, see IRM 3.11.16.11.11(4), Schedule J, Page 3 - Controlled Group Code / Personal Service Corporation Code / Tax Computation, |
| Delete Schedule O. |
(3) Entries may be shown on an attached allocation/apportionment schedule. Some examples of the title of these schedules may be:
"apportionment plan"
"apportionment consent plan"
"consent to apportionment"
"controlled group tax apportionment plan"
"surtax apportionment plan"
"allocation schedule"
(4) The attachment may identify the amounts by the tax rate and/or taxable income bracket. Column (c) is the $50,000 taxable income bracket taxed at 15 percent, Column (d) is the $25,000 taxable income bracket taxed at 25 percent and Column (e) is the $9,925,000 taxable income bracket taxed at 34 percent.
(5) Any attachment labeled as "controlled group tax calculation statement" is not an apportionment plan and not used to edit tax bracket amounts on Schedule O.
Schedule O, Part III, Line 1 - Income Tax Apportionment
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Edit Part III, Line 1 as follows:
If | And | Then |
|---|---|---|
The parent corporation's income tax apportionment amounts are present in Part III, | The amounts are entered on Line 1, | "X" any negative entries on Line 1, Columns (f) and (g). |
The parent corporation's income tax apportionment amounts are present in Part III, | The amounts are entered on a line other than Line 1, |
|
A Controlled Group was edited, | Part III, Line 1, Column (f) is blank, | Check attachments for possible entry (additional 5 percent tax):
|
A Controlled Group was edited, | Part III, Line 1, Column (g) is blank, | Check attachments for possible entry (additional 3 percent tax):
|
Form 8873 - Extraterritorial Income Exclusion
(1) Document Perfection is responsible for processing Part I of Form 8873, "Elections and Other Information." Elections are identified by inputting Command Code FRM77 with Transaction Code "971" and IDRS Action Code "361," "362," or "363" depending on which election has been made. See the following subsections for specific instructions:
IRM 3.11.16.12.1, Part I, Line 1 - IRC 942(a) (3) Election.
IRM 3.11.16.12.2, Part I, Line 2 - Election to Apply the Extraterritorial Income Exclusion Provisions to Certain Transactions Involving a FSC.
IRM 3.11.16.12.3, Part I, Line 3 - Domestication Election.
Note: "Action Codes" referenced in the Form 8873 instructions are IDRS Action Codes, not to be confused with ERS Action Codes. IDRS Action Codes will be edited as part of the Action Trail (e.g., TC 971-361).
(2) It is necessary to process all Forms 8873 attached to a return, including those attached to subsidiary returns on a consolidated return.
(3) If Part I, Lines 1 - 3 of the Form 8873 are not checked, then no TC "971" needs to be edited.
Part I, Line 1 - IRC 942(a)(3) Election
(1) If the box is marked for Part I, Line 1 of Form 8873, enter TC "971" with IDRS Action Code "361." Use the current date for the Effective Date.
Note: Edit Action Trail (e.g., "TC 971-361") in the lower left margin going vertically up the side of the return.
Part I, Line 2 - Election to Apply the Extraterritorial Income Exclusion Provisions to Certain Transactions Involving a FSC
(1) If the box is marked for Part I, Line 2 of Form 8873 enter TC "971" with IDRS Action Code "362." Use the current date for the Effective Date.
Note: Edit Action Trail (e.g., "TC 971-362") in the lower left margin going vertically up the side of the return.
Part I, Line 3 - Domestication Election
(1) If the box is marked for Part I, Line 3 of Form 8873 enter TC "971" with IDRS Action Code "363." Use the current date for the Effective Date.
Note: Edit Action Trail (e.g., "TC 971-363") in the lower left margin going vertically up the side of the return.
Form 4626 - Corporate Alternative Minimum Tax (CAMT) (Tax Period 202301 and later)
(1) The instructions in this subsection apply to Tax Period 202301 and later.
(2) Place Form 4626 in sequence order if significant entries are present on any of the following lines:
Question A is checked
Question B is checked
Part I, Line 1a, Column a
Part I, Line 1a, Column b
Part I, Line 1a, Column c
Part I, Line 1f, Column a
Part I, Line 1f, Column b
Part I, Line 1f, Column c
Part I, Line 5, Column a
Part I, Line 5, Column b
Part I, Line 5, Column c
Part I, Line 13, Column a
Part I, Line 13, Column b
Part I, Line 13, Column c
Part I, Line 15
Part II, Line 1a
Part II, Line 1f
Part II, Line 4
Part II, Line 5
Part II, Line 8
Part II, Line 9
Part II, Line 13
(3) Edit RPC "N" if Form 4626 (2023 Revision and later) is attached. See IRM 3.11.16.9.2, Return Processing Code.
Form 4626 - Alternative Minimum Tax (Tax Period 201811 and prior)
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Taxpayers may sometimes include more than one Form 4626 with the return. If more than one Form 4626 is present, compute the totals and edit the right transcription lines.
(3) If Form 4626 is attached, perfect the following lines, as necessary:
Line 3 - Pre-adjustment Alternative Minimum Taxable Income (AMTI). If there is no entry on Line 3, but any of Lines 1 or Lines 2a through 2o have an entry, compute Line 3. Bracket if negative.
Line 4e - Adjusted current earning (ACE) adjustment. Accept taxpayer's entry.
Line 6 - Alternative tax net operating loss deduction. Accept positive taxpayer's entry. "X" negative entry.
Line 11 - Alternative minimum tax foreign tax credit. Accept positive taxpayer's entry. "X" negative entry.
Schedule D - Capital Gains and Losses
(1) Edit the Schedule D as follows:
If | Then |
|---|---|
All the following conditions apply:
|
|
Criteria above is not met, | Cross out or slash the Schedule D. |
Form 4797 - Sales of Business Property (Form 1120 Only)
(1) Line 1b - No editing necessary.
(2) Line 1c - No editing necessary.
Form 8949 - Sales and Other Dispositions of Capital Assets
(1) Form 8949, Sales and Other Dispositions of Capital Assets, is valid for Tax Period ending 201712 and later. See Figure 3.11.16-23.
(2) If the taxpayer entered a "Z" or "Y" in any of the rows in either Part I, Line 1, Column (f), or Part II, Line 1, Column (f), of Form 8949, do the following:
Place the form in sequence order. If there is more than one Form 8949 attached, sequence the Form 8949 with the edited data.
Edit CCC "M."
If the taxpayer entered a "Z" in any of the rows in either Part I, Line 1, Column (f), or Part II, Line 1, Column (f), of Form 8949, edit as follows:
If the taxpayer entered a "Y" in any of the rows in either Part I, Line 1, Column (f), or Part II, Line 1, Column (f), of Form 8949, edit as follows:
If | Then |
|---|---|
EIN is present in Column (a), | Underline the EIN. |
No EIN is present in Column (a) or is illegible, | No action is needed. |
A Date Acquired is present in Column (b) and the day, month, and year are present, | Underline the Date Acquired. |
A Date Acquired is present in Column (b) and the day, month, and year are not present, | No action is needed. |
A dollar amount is present in Column (g), | Underline the dollar amount. |
No dollar amount is present in Column (g), | No action is needed. |
If more than one row has a "Z" in Column (f), | Edit "Z-1" to the right margin of Part I, Line 1, Row 1. |
If | Then |
|---|---|
EIN is present in Column (a), | Underline the EIN. |
No EIN is present in Column (a) or is illegible, | No action is needed. |
Date Sold or Disposed of is present in Column (c) and the day, month, and year are present, | Underline the Date Sold or Disposed of. |
Date Sold or Disposed of is present in Column (c) and the day, month, and year are not present, | No action is needed. |
A dollar amount is present in Column (g), | Underline the dollar amount. |
No dollar amount is present in Column (g), | No action is needed. |
If more than one row has a "Y" in Column (f), | Edit "Y-1" to the right margin of Part I, Line 1, Row 1. |
If "Z-1" is edited, | Edit "Y-1" under "Z-1." |
Form 8996 - Qualified Opportunity Fund
(1) Form 8996 is valid for Tax Period ending 201712 and later. See Exhibit 3.11.16-17, Form 8996 - Prior Year Conversion Chart.
(2) The table below shows Form 8996 revision line numbers:
Form 8996 Revisions2021 and later | 2020 | 2019 | 2018 and 2017 |
|---|---|---|---|
Line 5 | Line 5 | Line 5 | N/A |
Line 6 | N/A | N/A | N/A |
Line 7 | Line 7 | Line 6 | Line 5 |
Line 8 | Line 8 | Line 7 | Line 6 |
Line 10 | Line 10 | Line 9 | Line 8 |
Line 11 | Line 11 | Line 10 | Line 9 |
Line 14 | Line 14 | Line 13 | Line 12 |
Line 15 | Line 15 | Line 14 | Line 13 |
(3) Place Form 8996 in sequence order if significant entries are present on any of the lines in paragraphs (4) through (10) below:
Note: Only Part III, Lines 14 and 15 require editing.
(4) Part I, Line 5 - checkbox is checked.
(5) Part I, Line 6 - Reserved for Future Use.
(6) Part II, Line 7 - Total qualified opportunity zone property held by the taxpayer on the last day of the first 6-month period of the taxpayer’s tax year.
(7) Part II, Line 8 - Total assets held by the taxpayer on the last day of the first 6-month period of the taxpayer’s tax year.
(8) Part II, Line 10 - Total qualified opportunity zone property held by the taxpayer on the last day of the taxpayer’s tax year.
(9) Part II, Line 11 - Total assets held by the taxpayer on the last day of the taxpayer’s tax year.
(10) Part III, Line 14 - Perfect line 14 as follows:
Edit the percent on Line 14 in 0.00 format. For example, edit 50 percent as 0.50.
If the entry is greater than 1.00, "X" the entry on Line 14. For example, the entry is 1.23 or 1.23 percent.
(11) Part III, Line 15 - Perfect Line 15 as follows:
If Form 8996, Part III, Line 15 is blank and Part IV, Line 8 has an amount, edit Part IV, Line 8 to Part III, Line 15 in dollars and cents.
(12) Edit Return Processing Code (RPC) "6," see IRM 3.11.16.9.2, Return Processing Code (RPC), for more information.
(13) See the following IRM references:
Form 1120 - IRM 3.11.16.11.41, Schedule K, Question 25 (Form 8996 - Qualified Opportunity Fund)
Form 1120-F - IRM 3.11.16.34.24, Page 3, Question II (Form 8996 - Qualified Opportunity Fund)
Form 1120-REIT - IRM 3.11.16.40.29, Schedule K, Question 12 (Qualified Opportunity Fund - Form 8996)
Form 1125-A - Cost of Goods Sold
(1) Place Form 1125-A in sequence order if significant entries are present on Lines 1, 6, or 7.
(2) Edit Form 1125-A in dollars only.
(3) Line 1 is "Inventory at Beginning of Year." If Line 1 is blank, edit from the taxpayer's attachment, see Figure 3.11.16-24.
(4) Line 6 is "Total Cost of Goods." If Line 6 is blank, do one of the following:
Add Lines 1 through 5 and edit the total to Line 6, or
Perfect from attachments if possible for a Line 6 total, see Figure 3.11.16-24, or
Edit the positive amount from line 2, page 1 of Form 1120 to line 6 of Form 1125-A.
(5) Line 7 is "Inventory at End of Year." If Line 7 is negative "X" the amount. If Line 7 is blank, enter from taxpayer's attachment, see Figure 3.11.16-24.
(6) Forms 1125-A must be dummied if missing and if Lines 1, 6, and/or 7 can be edited. Use instruction in 2-5 above to edit lines. Place Form 1125-A in sequence order.
Form 4136 - Credit for Federal Tax Paid on Fuels
(1) If Form 4136 is missing and a significant entry is present on any of the lines below, correspond for the missing Form 4136. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Form 1120 - Schedule J, Part II, Line 20b
(Part III, Line 20b for 2022 - 2018)
(Part II, Line 19b for 2017 - 2011)Form 1120-C - Line 30f
(Line 30g for 2023)
(Line 30f for 2022 - 2018)
(Line 29f for 2017 and prior)Form 1120-F - Page 1. Line 5g
Form 1120-FSC - Page 1, Line 2f
Form 1120-H - Page 1, Line 23e
(Line 23f for 2022 and prior)Form 1120-L - Page 1 Line 27f
(Line 27g for 2023)
(Line 28g for 2022 - 2018)
(Line 27g for 2017 and prior)Form 1120-PC - N/A
Form 1120-REIT - Page 2, Line 25f
(Line 25g for 2023)
(Line 25f for 2022 - 2018)
(Line 24f for 2017 and prior)Form 1120-RIC - Page 2, Line 28f
(Line 28g for 2023)
(Line 29g for 2022-2018)
(Line 28g for 2017 and prior)
(2) If a fuel credit claim is found on other than the right line on the return, and Form 4136 is attached, adjust incorrect entry before editing fuel tax credits.
(3) If fuel tax credit is claimed and Form 4136 is attached, compute as follows:
If | And | Then |
|---|---|---|
Form 4136, Column (d) is blank, | There is an entry in Column (c), | Multiply the entry in Column (c) by the rate in Column (b) |
Perfection is not possible, |
| Correspond. |
(4) C&E is no longer required to renumber the lines on prior year Form 4136 to current year format. Column (d) credit amounts are transcribed using the corresponding Credit Reference Number (CRN) in Column (e).
Form 8978 and Form 8978, Schedule A
(1) Form 8978 is valid for Tax Period ending 201712 and later.
(2) The "Source of review Year adjustments" checkboxes on Form 8978, Partner’s Additional Reporting Year Tax and Form 8978, Schedule A, Partners Additional Reporting Year Tax (Schedule of Adjustments), are valid for Tax Period 202112 and later.
(3) Place Form 8978 in sequence order if any of the following apply:
The "Source of review year adjustments" checkboxes are checked on Form 8978.
The "Source of review year adjustments" checkboxes are checked on Form 8978, Schedule A.
Significant entries are present on Form 8978, Part I, Line 14, Part II, Line 16, or Part III, Line 18.
(4) Edit the digit to the right margin of Form 8978, Part I row as follows:
If | And | Then |
|---|---|---|
Only Form 8978 is attached, | One or more of the boxes are checked, | Edit:
|
Form 8978 and Form 8978, Schedule A, are attached, | The boxes are marked the same on both forms, | Use the Form 8978 data and edit as shown above. |
Form 8978 and Form 8978, Schedule A, are attached, | The boxes are marked differently, | Use the Form 8978, Schedule A, data and edit as shown above. |
Only Form 8978, Schedule A, is attached, |
| No editing is required. |
Note: No editing is required on Lines 14, 16 and 18.
(5) Part I, Line 14 - Total additional reporting year tax.
(6) Part II, Line 16 - Total penalties.
(7) Part III, Line 18 - Total interest.
Form 965-B - Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts
(1) Form 965-B is valid for Tax Period ending 201712 and later.
(2) Place Form 965-B in sequence order if a significant amount (other than the pre-printed year) is present on any of the following lines:
Part I, Lines 1 through 5, col (a), Year of Section 965(a) Inclusion or Liability Assumed.
Part I, Lines 1 through 5, col (h), Net 965 Tax Liability Transferred (Out) Transferred (In), or Subsequent Adjustments, if any.
Part I, Lines 1 through 5, col (i), Tax Identification Number of buyer/transferee or Seller/transferor.
(3) Edit "1" in the right margin of Part I if more than five lines of entries are present.
Form 8941 - Credit for Small Employer Health Insurance Premiums
(1) Place Form 8941 in sequence order if significant entries are present.
(2) Line A: To determine if correspondence is needed for the SHOP (Small Business Health Options Program) checkbox (Line A, Form 8941) for 2014 and later, follow the table below:
Note: This chart is only applicable for the Form 1120.
If | Then |
|---|---|
Line A, Only "Yes" box or "No" box is checked, | No correspondence is needed. |
Line A, Neither the "Yes" box or the "No" box is checked, | Correspond using Letter 118C. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
Line A, Both the "Yes" box and the "No" box is checked, | Correspond using Letter 118C. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
(3) Line C: To determine if correspondence is needed for the checkboxes on Line C (2016 and later), follow the table below:
Note: This chart is only applicable for the Form 1120.
If | Then |
|---|---|
Line C, Only "No" box is checked, | No correspondence is needed. |
Line C, Only "Yes" box is checked, | Correspond using Letter 118C. |
Line C, Neither the "Yes" box or the "No" box is checked, | Correspond using Letter 118C. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
Line C, Both the "Yes" box and the "No" box is checked, | Correspond using Letter 118C. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
(4) For prior year conversion instructions, see Exhibit 3.11.16-18, Form 8941 - Prior Year Conversion Chart.
Form 5884-B - New Hire Retention Credit
(1) Form 5884-B, New Hire Retention Credit is historical (2010 through 2011).
Form 3800 - General Business Credit
(1) Form 3800, General Business Credit, must be filed with corporate tax returns when an amount is present on Schedule J, Line 5c - General Business Credit.
(2) Place Form 3800 in sequence order if significant entries are present.
(3) If an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on any line of Form 3800 , Part III, Column (g) (Column (j) for 2023 and prior) correspond for the supporting credit form. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1a, 1b, 1c, 1e, 1f, 1h, 1i, 1j, 1k, 1l, 1m, 1n, 1p, 1s, 1t, 1w, 1x, 1y, 1aa, 1bb, 1zz, 3, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (b) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2023 - If Form 3800, Part III, Line 1b, 1c, 1e, 1f, 1g, 1h, 1i, 1j, 1k, 1m, 1n, 1p, 1s, 1t, 1u, 1w, 1x, 1y, 1aa, 1bb, 1cc, 1dd, 1ee, 1ff, 1zz, 3, 4a, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (d) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1b, 1c, 1e, 1f, 1g, 1h, 1i, 1j, 1k, 1m, 1n, 1p, 1q, 1s, 1t, 1u, 1v, 1w, 1x, 1y, 1aa, 1bb, 1cc, 1dd, 1ee, 1ff, 1gg, 1zz, 3, 4a, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (c) has an EIN, do not correspond and continue to process the return.
(4) See IRM 3.11.16.11.21, Line 5c - General Business Credit and Exhibit 3.11.16-19, Form 3800 - Prior Year Conversion Chart.
Form 8997 - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments
(1) Form 8997 is valid for Tax Period ending 201901 and later.
(2) Place Form 8997 in sequence order if the form is attached and significant entries are present in any of Parts I, II, III or IV.
(3) No editing is required except for the indicator in Parts I, II, III or IV. Transcription is from Row 1 of each part.
(4) Part I - Total QOF Investment Holdings Due to Deferrals before Beginning of Tax Year (Row 1).
Column a - EIN
Column b - Date
Column d - Special Gain Code
Column e - Amount of short-term deferred gain remaining in QOF
Column f - Amount of long-term deferred gain remaining in QOF
Part I Indicator - If more than one row of tax data is present in Part I, edit a "1" in the right margin of Part I, Row 1.
Line 2, Column e - Total amount
Line 2, Column f - Total amount
(5) Part II - Current Tax Year Capital Gains Deferred by Investing in QOF (Row 1)
Column a - EIN
Column b - Date
Column d - Special Gain Code
Column e - Amount of short-term deferred gain remaining in QOF
Column f - Amount of long-term deferred gain remaining in QOF
Part II Indicator - If more than one row of tax data is present in Part II, edit a "1" in the right margin of Part II, Row 1.
Line 2, Column e - Total amount
Line 2, Column f - Total amount
(6) Part III - Inclusion Events and Certain Other Transfers During the Current Tax Year (Row 1)
Column a - EIN
Column b - Date
Column d - Special Gain Code
Column e - Amount of previously deferred short-term gain now included in taxable income
Column f - Amount of previously deferred long-term gain now included in taxable income
Part III Indicator - If more than one row of tax data is present in Part III, edit a "1" in the right margin of Part III, Row 1.
Line 2, Column e - Total amount
Line 2, Column f - Total amount
(7) Part IV - Total QOF Investments Due to Deferrals at Year End (Row 1)
Column a - EIN
Column b - Date
Column d - Special Gain Code
Column e - Amount of short-term deferred gain invested in QOF
Column f - Amount of long-term deferred gain invested in QOF
Part IV Indicator - If more than one row of tax data is present in Part IV, edit a "1" in the right margin of Part IV, Row 1.
Line 2, Column e - Total amount
Line 2, Column f - Total amount
(8) If Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, is attached, edit Return Processing Code (RPC) "9." See IRM 3.11.16.9.2, Return Processing Code (RPC), for more information.
Form 6252 - Installment Sale Income (Form 1120 Only)
(1) The transcription of Form 6252 is valid for Tax Period ending 201712 and later.
(2) Place Form 6252 in sequence order if the form is attached to a Form 1120 and significant entries are present on any of Lines 1, 2a, 2b, 7, 19, 21 or 23.
Note: Part II, Line 19 is the only line that requires editing, however, an Installment Sale Indicator must be determined from Line 3, see IRM 3.11.16.10.4, Installment Sale Indicator (Form 6252).
(3) Only one Form 6252 can be processed. If multiple forms are attached, process the first one with significant transcription entries and delete the others.
Caution: Multiple Forms 6252 must be used to determine the Installment Sale Indicator.
(4) Line 1 - Description of Property - Taxpayer may enter a code and a description of installment sale property as described below: (No editing necessary)
Code | Description of property |
|---|---|
1 | Sale property is timeshare or residential lot |
2 | Sale by an individual of personal use property (within the meaning of section 1275(b)(3)) |
3 | Sale of any property used or produced in the trade or business of farming (within the meaning of section 2032A(e)(4) or (5)) |
4 | All other installment sales not listed |
(5) Line 2a - Date acquired.
(6) Line 2b - Date sold.
(7) Line 3 - Information is used to determine the Installment Sale Indicator - Edit "6 -" followed by the right Installment Sale Indicator code in the left margin of Form 1120, Page 1, near Line 12 when Form 6252 is present (e.g., "6 - 1").
Valid Installment Sale Indicator codes are as follows:
Code | One Form 6252 | More Than One Form 6252 |
|---|---|---|
1 | "Yes" response to Question 3 | At least one form has a "Yes" response. |
2 | "No" response to Question 3 | All "No" responses, or a combination of "No" and/or blank responses. |
3 | "Yes" and "No" are checked or Question 3 is blank | Question 3 is blank on all forms. |
(8) Part I, Line 7 - Taxpayer subtracts Line 6 from Line 5.
(9) Part II, Line 19 - Gross Profit Percentage.
If Line 19 is not in 0.0000 format, edit the percentage as follows:
If the percent is greater than 1.00, "X" the percentage amount on Line 19. For example, the percentage is 1.2300 or 1.23 percent.
Taxpayer’s Entry | Edit |
|---|---|
50 percent | 0.5000 |
.123 | 0.1230 |
.12345 | 0.1234 |
Note: Data will only transcribe four digits after the decimal, If the percentage is in the correct format e.g., 0.0000, but more than four digits are present after the decimal e.g., 0.123456, no editing is needed.
(10) Part II, Line 21 - Payments received during year.
(11) Part II, Line 23 - Payments received in prior years.
Form 8936, Schedule A, Clean Vehicle Credit Amount
(1) Sequence up to two Form 8936 Schedule A.
(2) The following lines will be transcribed from the first two attached Form 8936 Schedule A.
Part I, Line 2
Part I, Line 3
Part II, Line 9
Part II, Line 11
Part IV, Line 17
Part V, Line 26
(3) If more than two Form 8936 Schedule A are attached, edit an indicator of "1" on the second Form 8936 Schedule A, in the bottom right margin of Page 3. See Figure 3.11.16-26, Schedule A Indicator.
(4) If there is an amount of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Schedule J, Line 5c for the Clean Vehicle credit (Form 3800, Part III, Lines 1y or 1aa) correspond for a Form 8936 or Form 8936 Schedule A if either is missing. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties
(1) Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties, is valid for Tax Period ending 202401 and later.
(2) Place Form 4255 in sequence order if the form is attached and significant entries are present in Part I, Columns (s) or (t). See IRM 3.11.16.11.1, Sequence - Form 1120.
(3) If the Tax Period is 202312 and prior, do not sequence the Form 4255.
(4) The following lines will be transcribed on Form 4255.
Form 4255, Part I | Credit From | Column |
|---|---|---|
Line 1a | Form 7207 | (s) |
Line 1a | Form 7207 | (t) |
Line 1b | Form 3468, Part III | (s) |
Line 1b | Form 3468, Part III | (t) |
Line 1c | Form 7210 | (s) |
Line 1c | Form 7210 | (t) |
Line 1d | Form 3468, Part IV | (s) |
Line 1d | Form 3468, Part IV | (t) |
Line 1e Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7218 | (s) |
Line 1e Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7218 | (t) |
Line 1f Caution: If the Tax Period is 202312 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7213, Part II | (s) |
Line 1f Caution: If the Tax Period is 202312 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7213, Part II | (t) |
Line 1g Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 3468, Part V | (s) |
Line 1g Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 3468, Part V | (t) |
Line 1h | Form 8936, Part V | (s) |
Line 1h | Form 8936, Part V | (t) |
Line 1i Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7211 | (s) |
Line 1i Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7211 | (t) |
Line 1j | Form 3468, Part VI | (s) |
Line 1j | Form 3468, Part VI | (t) |
Line 1k | Form 8835 | (s) |
Line 1k | Form 8835 | (t) |
Line 2a | Form 8933 | (s) |
Line 2a | Form 8933 | (t) |
Line 2b | Form 8911, Part I | (s) |
Line 2b | Form 8911, Part I | (t) |
(5) If there is an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Form 1120, Schedule J, Line 1g (Amount from Form 4255, Part I, Line 3, Column (q)), correspond for a Form 4255 if missing. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Consolidated Returns
(1) A consolidated return is defined as a single income tax return having combined financial data for a parent corporation and one or more subsidiary or affiliated corporations.
(2) The parent corporation files the return, and its name, which appears on the return, including the words, "and subsidiaries", "and affiliated companies", or similar notation.
(3) The parent corporation must submit Form 851, with Form 1120, on an annual basis.
If | And | Then |
|---|---|---|
Form 851 is missing or Form 851, Part I is not completed, | After inspecting the return for possible attachments that may be a "substitute" Form 851, |
|
(4) Form 1122 may also be attached to a consolidated return. See IRM 3.11.16.29.4, Form 1122 - Authorization and Consent of Subsidiary Corporation to be Included in a Consolidated Income Tax Return.
(5) If there is a sign a subsidiary return has been detached from the parent corporation return (e.g., "Included in a Consolidated Return" or similar notation is on the tax return), research INOLES to determine if the tax return has an 1120-14 filing requirement.
Route the tax return to AM if INOLES shows an 1120-14 filing requirement.
Continue processing the tax return if INOLES does not show an 1120-14 filing requirement.
Consolidated Return - Mixed Components
(1) A Mixed Component is a consolidated return with a combination of Form 1120 and/or Form 1120-L (Life Insurance) and/or 1120-PC (Property and Casualty (Non-Life Insurance)) processed as either the parent or subsidiary return. There may also be a sign the return is for a "Life" and/or "Non-Life" insurance company.
(2) Do not search attachments for missing money amounts for pages 1, 2, and 4.
(3) Do not correspond for missing schedules for pages 1, 2, and 4.
(4) Do not correspond for income or deduction amounts if "see attached" is notated in the Income Section or Deduction Section of the return.
(5) Do not correspond for a missing Balance Sheet on a mixed component return that includes a Form 1120-L.
(6) Do not correspond for a missing Form 1120-L or 1120-PC Annual Statement if a re-entry mixed component return, Form 1120 was originally filed electronically.
(7) All other processing instructions will be followed.
Consolidated Returns - Required Information
(1) Supporting schedules showing in detail for each corporation included in the consolidation: income, deductions, and computations of taxable income; reconciliation of earned surplus; and assets and liabilities at the beginning and ending of the taxable year will be attached.
(2) If the supporting information for each corporation is in the form of separate returns for the parent corporation and the subsidiaries, do not detach or separate these documents from the consolidated return.
(3) If the Balance Sheets are included only for the parent corporation and subsidiaries, and the Consolidated Balance Sheet is not included, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(4) If a Consolidated Balance Sheet is not received, all Balance Sheet items will be input from the Balance Sheet of the parent Corporation; if the parent corporation cannot be found, Balance Sheet items will be input from the subsidiary with greatest Ending Assets.
Form 851 - Affiliations Schedule
(1) Consolidated returns may be filed on Form 1120, Form 1120-C, Form 1120-L, and Form 1120-PC only.
Note: For Form 1120, see IRM 3.11.16.9.3, ABLM Code and Schedule M-3 Checkbox.
(2) If a Form 851 is attached to any other return, do not input Transaction Code (TC) "590" for the subsidiaries.
(3) A TC "590" with Closing Code "014" MUST be input for all subsidiaries shown on the Form(s) 851. This applies to both numbered and unnumbered returns.
(4) Subsidiaries NAICS Code information:
Six digit codes are located on Page(s) 1, Part II, Lines 2 through 10 on the Form 851.
If more than one Form 851 is present, enter the code in each subsidiaries individual transaction record.
If any NAICS Codes are missing, use code "999999."
(5) Form 851 is unprocessable, if the total amount of Form 851, Line 1 does not agree with the sum of Form 1120, Schedule J, Lines 13,14 and 17 (Lines 12, 13 and 16 for 2017- 2011) or credits are claimed on Form 851, Lines 2 through 10.
If | Then |
|---|---|
Form 851, Line 1 "Portion of overpayment credits and estimated tax payments" does not agree with the total of Form 1120, Schedule J, Lines 13 and 14 (Lines 12 and 13 for 2017-2011) |
|
Form 851, Line 1 "Portion of tax deposited with Form 7004," does not agree with the amount on Form 1120, Schedule J, Line 17 (Line 16 for 2017-2011), |
|
Form 851, Lines 2 through 10 include credits for "Portion of overpayment credits and estimated tax payments" or "Portion of tax deposited with Form 7004," |
|
Note: For Form 1120-C, use the sum of Line 30(a) "Preceding year’s overpayment credited to current year", Line 30(b) "Current year’s estimated tax payments", and Line 30(d) "Tax deposited with Form 7004". (Lines 30(a), 30(b) and 30(e) for 2023 - 2018) (Lines 29(a), 29(b), and 29(e) for 2017 and prior).
For Form 1120-L, use the sum of Line 27(a) Preceding year’s overpayment credited to current year, Line 27(b) "Current year’s estimated tax payments", and Line 27(d) Tax deposited with Form 7004. (Lines 27(a), (b), and (e) for 2023) (Lines 28 (a), (c), and (f) for 2022 - 2018) (Lines 29 (a), (b), (c), (d), and (g) for 2017 and prior).
For Form 1120-PC, use the sum of Line 16(a) Preceding year’s overpayment credited to current year, Line 16(b) Current year’s estimated tax payments, and Line 16(d) "Tax deposited with Form 7004". (Lines 15(a), (b), and (e) for 2023) (Lines 15(a), (c), and (g) for 2022 - 2019) (Lines 15(a), (b), (c), (g) for 2018) (Lines 14(a), (b), (c), (d), and (g) for 2017 and prior).
(6) (Clerical) An action trail must be notated on the return "TC-590-014 INPUT." See Figure 3.11.16-28.
(7) (Clerical) TC "590" - Closing Code "014" requires that:
The parent corporations EIN and Name Control match the Master File (MF).
The parent corporations BMF filing requirements are 01 for Form 1120, 20 for Form 1120-C, 03 for Form 1120-L, or 04 for Form 1120-PC.
The subsidiary corporation's FYM must match the parent corporation's FYM.
The subsidiary corporations EIN and Name Control match the MF.
The subsidiary NAICS Code must be part of the transaction, see IRM 3.11.16.11.33, Schedule K, Line 2a - NAICS Code.
(8) (Clerical) For each subsidiary listed on the Form 851 or attached input the following under Command Code FRM49:
Subsidiary EIN
MFT
Tax Period
Subsidiary Corporate Name Control
NAICS Code
(9) (Clerical) If the return is Numbered -
Reject the document using Action Code "355."
Prepare Form 4227 for Rejects.
Use Command Code INOLE to verify the parent corporate name line and the filing requirement is 01 for a Form 1120, 20 for Form 1120-C, 03 for Form 1120-L, or 04 for Form 1120-PC, before inputting the TC 590-014.
In the reason area of the Form 4227 write "Verify the Parent Corporations EIN, Name and filing requirement with MF, then input TC 590-014 for all subsidiaries listed on the Form(s) 851 and its attachments."
(10) (Clerical) If the return is Unnumbered -
Verify the parent corporations EIN, Name, and filing requirement are correct on the Master File.
Use Command Code INOLE to verify the parent corporate name line and the filing requirement is 01 for a Form 1120, filing requirement is 20 for Form 1120-C, filing requirement is 03 for Form 1120-L, or filing requirement is 04 for Form 1120-PC, before inputting TC 590-014.
(11) (Clerical) If the INOLE first name line and the parent consolidated return’s first name line do not agree (disregard subsidiaries) or if the parent is not established on the MF or its filing requirement is other than 01, 20, 03, or 04 (1120 / 1120-C / 1120-L / 1120-PC) or the parent corporation and the subsidiaries corporation FYM do not match:
Route the return to Entity Control for a first name line change,
Or route to Entity to establish it on the MF,
And/or route to Entity to make a filing requirement change.
Or route to Entity Control to have the subsidiary's FYM change to match the parent corporation's FYM.
(12) (Clerical) If the returns are received back from Entity Control for processing before the changes have posted to the MF, hold the returns and check IDRS after 2 cycles.
Input TC 590-014 for the subsidiaries.
If unable to input TC 590-014, continue processing the return.
(13) (Clerical) If any or all EINs are missing or are the same as the parent follow the steps in (a) through (e) below. When EINs are missing, check attachments and/or research IDRS to obtain them.
(14) (Clerical) If unable to obtain the EINs from IDRS research, route the return to Entity Control to have EINs assigned.
(15) (Clerical) Follow the steps in 5 and 6 above:
If the subsidiary corporate name and EIN are the same as the common parent corporation, circle the name and EIN.
If the EIN is the same as the common parent, circle the EIN.
If there is a sign that the EINs are pending or applied for.
If all the EINs are missing.
(16) (Clerical) If all the EINs are not obtained, correspond with the parent corporation to obtain the missing numbers. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. Upon receipt of a reply, input TC 590-014 for all EINs are furnished. There will be no further follow-up.
(17) (Clerical) When all EINs are obtained, input TC 590-014 for all the subsidiaries.
(18) (Clerical) If the subsidiaries EIN and Name Control do not match, an error message will appear on the screen when the TC 590-014 is input. When error message appears follow the procedures below:
Research IDRS through Command Code EINAD or NAMEE to see if there is a different EIN listed for the corporation.
If EINAD or NAMEE shows a different EIN than the one listed on the Form 851, use the one on EINAD or NAMEE.
(19) (Clerical) If EINAD or NAMEE does not provide a different EIN, research IDRS using Command Code INOLE to see what the entity is for the listed EIN. If the INOLE entity can be matched to the Form 851 subsidiary in some way (such as by a prior Name Control or a cross reference to the parent corporation EIN) use the INOLE Name Control for the TC 590-014 input.
Form 1122 - Authorization and Consent of Subsidiary Corporation to be Included in a Consolidated Income Tax Return
(1) The presence of Form 1122 indicates a Consolidated Income Tax Return which is being filed for the first time as a consolidated return. Do not correspond for Form 1122 if it appears to be missing.
(2) If Form 1122 is present, Form 851 must be present. Correspond for missing Form 851. Process Form 851 if present, see IRM 3.11.16.29.3, Form 851 - Affiliations Schedule.
Note: Also see ABLM Code "010" instructions in IRM 3.11.16.9.3, ABLM Code and Schedule M-3 Checkbox.
Form 1120-POL Filed on Form 1120
(1) A return for a Political Organization can usually be determined by the name. Form 1120 returns received from political organizations are to be transshipped to OSPC.
Form 1120-H Filed on Form 1120 (IRC 528)
(1) Apply the following general guidelines to IRC 528 filers who did not use Form 1120-H. The taxpayer must state "Section 528."
(2) Where the taxpayer is identified as an IRC 528 filer, and the return appears to be processable, transfer the data from the Form 1120 to Form 1120-H to the maximum extent possible.
(3) If the taxpayer is identified as an IRC 528 filer, but excludes a break-down of gross income (includable income cannot be identified), prepare an approved Correspondence Action Sheet, advising the taxpayer that they must file Form 1120-H.
(4) If taxpayer states that it is filing as an exempt organization specifically under IRC 501(c), prepare an approved Correspondence Action Sheet, advising the taxpayer to file Form 990.
Return Processing - Form 1120-A
(1) Form 1120-A, U.S. Short-Form Corporation Income Tax Return, must be converted to Form 1120. Follow Form 1120 procedures for processing Form 1120-A.
(2) If a taxpayer files a Form 1120-A, refer the return to the lead for conversion. Form 1120-A has been obsolete since 2006.
Return Processing - Form 1120-C (OSPC only)
(1) This subsection provides instructions for processing Form 1120-C, U.S. Income Tax Return for Cooperative Associations. Form 1120-C is valid for Tax Period ending 200612 and later.
(2) Form 1120-C is processed only at the Ogden Campus.
(3) Form 1120-C can be filed on a calendar or fiscal year basis.
(4) Action Codes apply to Form 1120-C, see IRM 3.11.16.3.1, Action Codes.
(5) Form 1120-C is due on or before the 15th day of the 9th month after the end of Tax Period.
Form 1120-C- General Instructions
(1) To convert prior year tax returns, see Exhibit 3.11.16-9, Form 1120-C - Prior Year Conversion Chart.
Sequence - Form 1120-C
(1) Document Perfection is responsible for arranging Form 1120-C in the following order when transcription line entries are present:
Form 1120-C, Pages 1 through 5
Schedule N (Form 1120)
Schedule O (Form 1120) (Tax period 201811 and prior only)
Form 4626 (Tax period 201811 and prior only (2017 revision))
Form 4626 (Tax period 2022 and later (2023 Revision and later))
Form 4136
Form 8978
Form 8941
Form 3800
Form 8936 Schedule A (Tax period 2023 and later)
Form 4255 (Tax period 2024 and later)
(2) It is not necessary to sequence the forms or schedules listed above if there are no transcription line entries.
(3) It is not necessary to sequence an Amended return. See IRM 3.11.16.3.9, Amended Returns, for more information.”
EIN
(1) See IRM 3.11.16.6.2, Entity Perfection - Employer Identification Number (EIN).
Name and Address
(1) See IRM 3.11.16.6.3, Entity Perfection - Name Control, through IRM 3.11.16.6.6, Entity Perfection - Foreign Address (OSPC).
Tax Period
(1) Code the Tax Period ending (except current calendar year) in YYMM format to the right of the title on Page 1 of the return.
(2) If a return is for a short period, see IRM 3.11.16.7.4, Short Period - Editing Proof of Entitlement.
Received Date
(1) Enter in MMDDYY format.
(2) Edit the received date on Page 1 in the dotted portion of the Deduction Section, Lines 11 through 18, see IRM 3.11.16.8, Received Date.
Computer Condition Codes
(1) Edit the applicable Computer Condition Codes to the dotted portion of Page 1, Lines 8 through 9, of Form 1120-C. Valid Computer Condition Codes for Form 1120-C are B, D, E, F, G, I, J, L, M, O, P, R, S, T, W, X, Y, 3, 5, 7, 8, and 9. For specific instruction, see IRM 3.11.16.9.1, Computer Condition Codes.
Return Processing Code (RPC)
(1) Return Processing Code (RPC) is an alpha or numeric character used to alert the computer to a special condition or computation.
(2) RPCs are edited on Page 1, in the right margin next to Line 1c of Form 1120-C.
(3) Refer to the table below for an explanation of when to edit each RPC.
RPC | Explanation |
|---|---|
E | Form 8865, Schedule G, Statement of Application for the Gain Deferral Method Under Section 721(c), is attached. |
F | Form 8865, Schedule H, Acceleration Events and Exceptions Reporting Relating to Gain Deferral Method Under Section 721(c), is attached. |
G | Form 5471, Schedule G-1, Cost Sharing Arrangement is attached. |
J | For Tax Period 202201 - 202212, taxpayer writes IRA22 DPE on Form 3800,Form 1120-C, Line 30f or on an attachment.
|
K | For Tax Period 202201 - 202212, taxpayer writes IRA22TRE on Form 3800, an attachment or at the top of the return.
|
L | Form 7204, Consent to Extend the Time to Assess Tax Related to Contested Foreign Income Taxes - Provisional Foreign Tax Credit Agreement, is attached. |
M | Form 7205, Energy Efficient Commercial Buildings Deduction, is attached. |
N | Form 4626, Alternative Minimum Tax (2023 Revision and later) is attached or Form 1120-C, Schedule J, Line 3 shows a significant amount. |
1 | Form 8991, Tax on Base Erosion Payments of Taxpayers with Substantial Gross Receipts, is attached. |
2 | Form 8992, U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI), is attached. |
3 | Form 8993, Section 250 Deduction for Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI), is attached. |
4 | Form 8994, Employer Credit for Paid Family and Medical Leave, is attached. |
6 | Form 8996, Qualified Opportunity Fund, is attached. |
7 | Form 8990, Limitation on Business Interest Expense IRC 163(j), is attached. |
Consolidated Return
(1) A consolidated Form 1120-C combines the tax information of a cooperative and its affiliates.
(2) Identify a consolidated return by one or more of the following:
Box A1, Page 1, to the left of the entity section is marked or the return is marked "Consolidated."
Form 851, Affiliations Schedule is attached with the Name, Address, EIN, and prepaid credits of each organization included on Form 851.
One or more Form(s) 1122, Return of Information, Authorization, and Consent of Subsidiary Corporation in a Consolidated Return, is attached.
A list of title holding corporations is attached.
(3) A consolidated Form 1120-C must submit Form 851 on an annual basis. Correspond if Form 851 is missing or the subsidiaries are not included on an attached Form 851.
Note: Before corresponding for missing Form 851, research the parent corporation using Command Code INOLE. Do not correspond if subsidiaries are not shown.
(4) For Form 851 processing procedures, see IRM 3.11.16.29.3, Form 851 - Affiliations Schedule.
ABLM Code
(1) The ABLM Code is computer generated for Form 1120-C. No editing is required.
Schedule M-3 Checkbox - Item A2
(1) Edit Computer Condition Code "B" when Box A2, "Schedule M-3 attached" is marked or Schedule M-3 is attached to Form 1120-C.
(2) Do not correspond for Schedule M-3 if Item A2 is checked and Schedule M-3 is not attached.
Form 1120-C - Box C
(1) Two Codes are determined from the checkboxes in Box C, Page 1 of the entity section. See IRM 3.11.16.33.12.1, Type of Cooperative Code and IRM 3.11.16.33.12.2, Type of Organization Code.
Type of Cooperative Code
(1) No editing is required. Data transcribes this code from the checkbox entries in Box C.
Data enters a "1" if C(1) is marked.
Data enters a "2" if C(2) is marked.
Type of Organization Code
(1) The Type of Organization Code is also determined from the checkboxes marked in Box C, Page 1 of the entity section. The Type of Organization Code is edited in the margin to the right of Item C.
(2) Always edit a Type of Organization Code.
If | Then |
|---|---|
The Farmer's tax exempt cooperative Box, C(1) is marked, | Edit code "6." |
The Nonexempt cooperative Box, C(2) is marked, | Edit code "7." |
Neither box is marked or both boxes are marked, | Edit code "7." |
Additional Form 1120-C Perfection
(1) This subsection addresses the editing of additional Form 1120-C information. General Business Credits will be transcribed from Form 3800, see IRM 3.11.16.10, Additional Return Perfection.
Form 8844 Indicator
(1) Edit "1 - 1" in the left margin of Form 1120-C near Line 12 when:
Form 8844 is shown on Form 1120-C, Schedule J, Line 5c.
Form 8844 is attached to the return even if dollar amounts are not present.
Form 3800, Part III, Line 3 has an entry.
See IRM 3.11.16.11.21.1, Form 8844, Empowerment Zone Employment Credit.
Audit Codes
(1) Valid Audit Codes are "2," "3," and C. No editing is required for Audit Codes 2 and 3.
(2) Audit Code "C" - Edit Audit Code "C" when Form 8283 is attached and:
Box 2b is checked, or
Box 2b1 is checked, or
Line 3, Column (h) has an entry.
Penalty and Interest Code
(1) Edit "4 - 1" in the left margin near Line 12 when precomputed delinquency penalty and/or interest is shown on a return with a received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
(2) This code is valid within the unextended (original) ≡ ≡ ≡ ≡ ≡ period. When the precomputed interest does not pertain to the ≡ ≡ ≡ ≡ period but to some other situation, such as an estimated Tax Penalty, do not Code "4 - 1" and do not insert Computer Condition Code "R." If only interest is shown, edit CCC "R."
Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Reserve Code
(1) The Reserve Code is "4."
(2) Edit "5 - 4" in the left margin near Line 12 if Form 2220 is attached and Part II, Box 8 is checked for Large Corporation.
Installment Sale Indicator (Form 6252)
(1) Edit "6 -" followed by the right Installment Sale Indicator code in the left margin near Line 12 when Form 6252, Installment Sale Income, is present (e.g., "6 - 1"), see IRM 3.11.16.10.4, Installment Sale Indicator (Form 6252).
Income - Lines 1a through 10
(1) Line 1c - Gross receipts balance. If blank, do one of the following:
Edit the sum of Line 1a minus Line 1b. Bracket if negative.
Edit the sum of Line 2 plus Line 3. Bracket if negative.
(2) Line 2 - Cost of goods sold. If blank, edit from Form 1125-A, Line 8. Bracket if negative.
(3) Line 7 - Capital gain net income. If there is a significant entry and Schedule D (Form 1120) is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(4) Line 8 - Net gain or loss from Form 4797, Part II, line 17, if an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 4797 is not attached and the taxpayer has not attached Form 4684, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(5) Line 10 - Total income. If blank, do one of the following:
If there are entries on Lines 1a through 9, compute and edit Line 10. Bracket if negative.
Double arrow Line 25c to Line 10 if Line 25c is the first dollar entry on Form 1120-C.
Deductions - Lines 11 through 26c
(1) Line 11 - Compensation of Officers (attach Form 1125-E). Accept taxpayer's entry.
(2) Line 12 - Salaries and wages. Accept taxpayer's entry.
(3) Line 13 - Bad debts. Accept taxpayer's entry.
(4) Line 22 - Section 199A(g) deduction (Tax Year 2018 and later). Domestic Production Activities Deduction under section 199 (Tax Year 2005 to 2017).
(5) Line 24 - Total deductions. If blank, edit the sum of Lines 11 through 23. Bracket if negative.
(6) Line 25b - Deductions and adjustments under IRC 1382. If blank, edit from Schedule H, Line 5. Bracket if negative.
(7) Line 26a - Net operating loss deduction. If blank, edit from attachments if possible.
(8) Line 26b - Special deductions. If blank, edit from Schedule C, Line 24 (Schedule C, Line 20 for 2017-2011).
Tax and Payments - Lines 27 through 35 (2024 revision)
(1) Line 27 - Taxable income. If blank, edit the sum of Line 10 minus Lines 24, 25b, 26a, and 26b.
(2) Line 28 - Total tax. If blank, edit from Schedule J, Line 11. (Line 10 for 2023) (Line 9 for 2022 and prior)
(3) Line 29 - Reserved - For Tax Period 201712 through 202012, follow the instructions in a) and b):
If blank enter amount from Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, as follows:
Edit CCC "J" and Action Code "460."
Reporting Tax Year | Form 965-B |
|---|---|
2017 | Part II, Column (k), Line 1 |
2018 | Part II, Column (k), Line 2 |
2019 | Part II, Column (k), Line 3 |
2020 | Part II, Column (k), Line 4 |
(4) Line 30a - Preceding Year’s Overpayment Credited to Current Year. Accept taxpayer’s entry.
(5) Line 30b - Current Year’s Estimated Tax Payments. Accept taxpayer’s entry.
(6) Line 30c - Current Year’s Refund Applied for on Form 4466 . If there is a significant entry on Line 30c, see IRM 3.11.16.9.1.15, CCC "O" - Module Freeze.
(7) Line 30d - Tax deposit with Form 7004 (Line 30e for 2023 - 2018) (Line 29e for 2017 and prior). Accept taxpayer's entry.
(8) Line 30d - Balance of payments for 2023 - 2018 (Line 29d for 2017 and prior). If blank, edit the sum of Lines 30a and 30b minus Line 30c (Lines 29a and 29b minus Line 29c for 2017 and prior).
(9) Line 30e - Credit for Tax Paid on Undistributed Capital Gains. (Line 30f for 2023) (Line 30f(1) for 2022) (Line 29f(1) for 2017 and prior)
If | Then |
|---|---|
The Undistributed Capital Gain Credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 2439 is missing, | Correspond. |
Form 2439 shows a lesser amount, | Place an "X" to the left of the entry on Line 30e (Line 30f for 2023) (Line 30f(1) for 2022 - 2018) (Line 29f(1) for 2017 and prior) Form 1120-C. Edit the lesser amount to the left of the "X." |
Form 2439 shows a larger amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, | Correspond. |
(10) Line 30f - Credit from Form 4136.
Form 4136 must be attached if there is an amount on Line 30f (Line 30g for 2023) (Line 30 f(2) for 2022 - 2018) (Line 29f (2) for 2017 and prior). Correspond for missing Form 4136 if Line 30f (Line 30g for 2023) (Line 30f(2) for 2022 - 2018) (Line 29f(2) for 2017 and prior) has a significant amount.
For Form 4136 processing instructions, see IRM 3.11.16.19, Form 4136 - Credit for Federal Tax Paid on Fuels.
(11) Line 30f - Credits (1) Form 2439 and (2) Form 4136 (2022 - 2018) and Line 29f (2017 and prior).
(Tax Period 202201 - 202211) - If a significant amount is present for an "Elective or Deemed Payment Election," edit RPC "J."
See (9) Line 30e editing instructions for Form 2439.
See (10) Line 30f editing instructions for Form 4136.
(12) Line 30g - Reserved for future use (2022 - 2018).
Line 30g - Refundable credits from Form 8827 - Revisions 2019 and prior (Line 29g for 2017 and prior):
If | Then |
|---|---|
The amount on Line 30g (Line 29g for 2017 and prior)≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8827 is not attached, | Correspond for Form 8827 |
(13) Line 30g - IRC 1383 adjustment (Line 30h for 2023 - 2018) (Line 29h for 2017 - 2008). A schedule showing the adjustment computation must be attached. Correspond for the missing computation schedule ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
(14) Line 30h - Elective Payment Election amount from Form 3800 (Line 30i for 2023). Accept taxpayer's entry.
For Tax Period 201712 through 202012, follow the instructions in b) and c).
If blank enter amount from Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, as follows:
Edit CCC "J" and Action Code "460."
Reporting Tax Year | Form 965-B |
|---|---|
2017 | Part II, Column (d), Line 1 |
2018 | Part II, Column (d), Line 2 |
2019 | Part II, Column (d), Line 3 |
2020 | Part II, Column (d), Line 4 |
(15) If the taxpayer has claimed backup withholding ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 1099 is not attached, correspond using Letter 118C, Corporate Return Incomplete for Processing: Form 1120, Form 1120 Series, Form 1120-S. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(16) Line 32 - Estimated tax penalty (Line 31 for 2023 - 2018) (Line 30 for 2017 and prior). If Form 1120-C, Line 32 (Line 31 for 2023 - 2018) (Line 30 for 2017 and prior) is blank and Form 2220 is attached with a significant entry on Page 2, Line 38, then edit the amount from Form 2220, Page 2, Line 38 to Form 1120-C , Line 32 (Line 31 for 2023 - 2018) (Line 30 for 2017 and prior). See IRM 3.11.16.11.6.6, Line 34 - Estimated Tax Penalty.
(17) Lines 33 and 34 - Amount owed/Overpayment (Lines 32 and 33 for 2023 - 2018) (Lines 31 and 32 for 2017 and prior). Edit the proper entry to Line 33 or 34 (Lines 32 or 33 for 2023 - 2018) (Lines 31 and 32 for 2017 and prior) if both are blank. Do both of the following:
For 2024, add Lines 28 and 32 minus 30a through 30z.
For 2023, add Lines 28 and 31 minus 30a through 30i.
For 2022 - 2018, add Lines 28, 29 and 31, subtract Line 30j.
For 2017 and prior, add Lines 28 and 30 minus Line 29j.
Edit the positive result on Line 33 (Line 32 for 2023 - 2018) (Line 31 for 2017 and prior) or the negative result (do not bracket) on Line 34 (Line 33 for 2023 - 2018) (Line 32 for 2017 and prior).
(18) If pre-computed interest or delinquency penalty or additional charge is evident, ensure that it has not been included in Line 33 (Line 32 2023 - 2018) (Line 31 2017 and prior) or reduced Line 34 (Line 33 2023 - 2018) (Line 32 for 2017 and prior).
If | Then |
|---|---|
The amount on Line 33 (Line 32 for 2023 - 2018) (Line 31 for 2017 and prior) has pre-computed interest or penalty or additional charge, |
|
The amount on Line 34 (Line 33 for 2023 - 2018) (Line 32 for 2017 and prior) has pre-computed interest or penalty or additional charge, |
|
(19) Line 35 - Credited to estimated tax (Line 34 2023 - 2018 and Line 33 for 2017 and prior). Accept the taxpayer’s entry.
Paid Preparer Information
(1) See IRM 3.11.16.11.8, Paid Preparer Checkbox Indicator, and IRM 3.11.16.11.9, Paid Preparer Section.
Schedule G - Allocation of Patronage and Nonpatronage Income and Deductions
(1) Line 5, Column (a) - Total income. If blank, edit the sum of Column (a), Lines 3 and 4.
(2) Line 5, Column (b) - Total income. If blank, edit the sum of Column (b), Lines 3 and 4.
(3) Line 6c Column (a) - Total deductions. Accept taxpayer's entry.
(4) Line 6c, Column (b) - Total deductions. Accept taxpayer's entry.
(5) Line 9a, Column (a) - Net operating loss. Accept taxpayer's entry.
(6) Line 9a, Column (b) - Net operating loss. Accept taxpayer's entry.
(7) Line 9b, Column (a) - Special deductions. Accept taxpayer's entry.
(8) Line 9b, Column (b) - Special deductions. Accept taxpayer's entry.
(9) Line 12, Column (a) - Unused patronage loss. Accept taxpayer's entry.
(10) Line 13, Column (b) - Unused nonpatronage loss. Accept taxpayer's entry.
Schedule H - Deductions and Adjustments Under IRC 1382
(1) Lines 3a and 3b. Accept taxpayer's entry.
Schedule J, Line 1 - Controlled Group Code
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Edit "1" to the right of the checkbox on Line 1, if the box on Line 1 is marked.
(3) If the box on Line 1 is not checked, edit "1" to the right of the checkbox on Line 1 if both of the following apply:
Page 1, Line 27 is more than $0.
Schedule O (Form 1120) is attached with the cooperative portion of the group's allocation.
Schedule J, Tax Computation
(1) Line 1a - Income tax (Line 1 for 2023 and Line 2 for 2022 and prior). Accept taxpayer's entry.
(2) Line 1b - Section 1291 Tax from Form 8621. Accept taxpayer’s entry.
(3) Line 1c - Tax Adjustment from Form 8978. Accept taxpayer’s entry.
(4) Line 1d - Base Erosion Minimum Tax from Form 8991 (Line 2 for 2023 and Line 3 for 2022 and prior).Prior to 2018 this line was used to report Prior Year Alternative Minimum Tax, Form 4626 (Tax periods 201811 and prior only).
If | Then |
|---|---|
The Tax Period is 201811 and prior and Line 2 (Line 3 for 2022 and prior) has a significant entry, but Form 4626 (2017 revision) is not attached, | Correspond. |
The Tax Period is 201811 and prior and Line 2 (Line 3 for 2022 and prior) is blank and Form 4626 is attached with an amount on Line 14, | Edit the Line 14, Form 4626 amount to Schedule J, Line 2 (Line 3 for 2022 and prior). |
The Tax Period is 201812 and later andForm 8991, Tax on Base Erosion Payments of Taxpayers with Substantial Gross Receipts, is attached, | Do the following:
|
The Tax Period is 201812 and later and Schedule J, Line 1d (Line 2 for 2023 and Line 3 for 2022 and prior) has a significant entry and Form 8991 is not attached, | Correspond. |
(5) Line 1e - Amount from Form 4255, Part I, Line 3, Column (q) - If Form 1120, Schedule J, Line 1e (Amount from Form 4255, Part I, Line 3 Column (q)) has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 4255 is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(6) Line 1z - Other Chapter 1 tax. Accept taxpayer’s entry.
(7) Line 3 - Corporate Alternative Minimum Tax Form 4626 (2023 revision and later). Correspond for Form 4626 if Line 3 has a significant entry and Form 4626 is not attached.
(8) Line 5a - Foreign tax credit, Form 1118:
If | Then |
|---|---|
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Edit CCC "P." |
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 1118 or similar statement is not attached, | Correspond. |
(9) Line 5b - Credits from Form 5735 and Form 8834:
If | Then |
|---|---|
There is an entry on a 2006 Form 1120-C, Line 5b ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but Form 8834 is not attached, | Correspond. |
There is an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Form 1120-C, Line 5b and it can be determined the credit is from Form 8834, but Form 8834 is not attached, | Correspond. |
There is an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Form 1120-C, Line 5b and it can be determined the credit is from Form 5735, but Form 5735 is not attached, | Correspond. |
There is an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Form 1120-C, Line 5b and it cannot be determined if the credit is from Form 5735 or 8834, | Correspond for missing Line 5b documentation. |
(10) Line 5c - If an amount is present or Form 3800 is attached, follow the instructions in IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit.
(11) Line 5d - Credit for prior year minimum tax, Form 8827:
If | Then |
|---|---|
The Line 5d entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but, Form 8827 is not attached, | Correspond. |
(12) Line 5e - Bond Credits from Form 8912. Accept taxpayer’s entry.
(13) Line 5z - Other (2024 and later). Accept taxpayer’s entry.
(14) Line 8a - Recapture of investment Credit (2023 and later)
If | Then |
|---|---|
The Line 8a entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but, Form 4255 is not attached, | Correspond. |
Form 4255 is attached and the tax is not included on Line 8a, | Edit the amount from Line 3, Column (r), Non-Chapter 1 Tax Total, Form 4255 to Schedule J, Line 8a, Form 1120-C. |
(15) Line 8b - Recapture of Low Income Housing Credit (2023 and later)
If | Then |
|---|---|
The Line 8b entry is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but Form 8611 is not attached, | Correspond. |
More than one Form 8611 is attached, |
|
Form 8611 is attached and the tax is not included on Schedule J, Line 8b, | Edit the amount from Line 14, Form 8611 to line 8b. |
(16) Line 8 - (Tax period 202201 through 202212) If a significant amount is present on Line 8 and the taxpayer writes" CAMT" or "IRA AMT" or indicates the amount is for Corporate AMT, continue processing, no action is required.
(17) Line 8 (Revision for 2022 and prior)
If | And | Then |
|---|---|---|
Form 4255 or Form 8611 boxes are checked and the credit amount claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, | The form is not attached. | Correspond. |
Form 4255 box is checked, | An amount is present on Form 4255, Line 3, Column (r), Non-Chapter 1 Tax Total, | Renumber Line 8 to Line 8a and enter the Form 4255 Line 3, Column (r), Non-Chapter 1 Tax Total, amount. |
Form 8611 box is checked, | An amount is present on Form 8611 Line 14, | Renumber Line 8 to Line 8b and enter the Form 8611 Line 14 amount. |
More than one Form 8611 is attached, |
|
|
(18) Line 10a, Total Tax before Deferred Taxes. If Line 10a is blank, then add Lines 7 and 9 and enter the result on Line 10a.
(19) Line 10b - Deferred Tax on the Cooperative's Share of Undistributed Earnings of a Qualified Electing Fund. Accept taxpayer’s entry.
(20) Line 10z, Other Deferred Taxes. Accept taxpayer’s entry.
(21) Line 11, Total Tax. If Line 11 is blank subtract the sum of Lines 10b and 10z from Line 10a. Enter the result on Line 11 and Form 1120-C, Page 2, Line 28.
Schedule K, Line 2 - NAICS Code
(1) The Principal Business Activity (PBA) Code is based on the North American Industry Classification System Code (NAICS). These codes are a high priority to the Service. It is critical data for Statistics of Income, Examination, Research, and other Service organizations.
(2) The NAICS Code is a six digit code on Schedule K, Line 2a of Form 1120-C.
(3) A NAICS Code is required on all Form 1120-C returns.
Exception: Do not edit a NAICS Code on "G" coded returns (amended returns).
(4) Only one NAICS Code can be used on the return. Edit the NAICS Code as follows:
If | Then |
|---|---|
A legible six digit NAICS Code is shown on Schedule K, Line 2a, | No editing is required. |
A legible four digit NAICS Code is shown on Schedule K, Line 2a, | No editing is required. |
There is more than one NAICS Code on Schedule K, Line 2a, | Circle all but the first NAICS Code listed. |
Schedule K, Line 2a is blank, illegible or other than four or six digits, | Edit NAICS Code "999999." |
Schedule K, Question 5 - Is the Cooperative a Subsidiary in an Affiliated Group/Controlled Group
(1) If Question 5 meets one of the following conditions, a Name Control and EIN must be edited.
If | Then |
|---|---|
|
|
Question 5 is answered "No" or neither box is checked and a corporation's name and EIN are not present, | No editing is required. |
Question 5 is answered "No" or neither box is checked and a corporation's name and/or EIN are the same as the return name and/or EIN, | No editing is required. |
Schedule K, Line 8c - Number Form 5472(s)
(1) No entry is required for Schedule K, Line 8c unless Form 5472 is present.
(2) Edit Line 8c as follows:
If | And | Then |
|---|---|---|
A number is present for Schedule K, Line 8c, |
| No editing is required. |
Schedule K, Line 8c is blank, | One or more Form 5472 is attached, | Edit the number of Form 5472(s) in the dotted line area of Line 8c. |
Form 5472 is attached, | Schedule K is not present, | Dummy a Schedule K and edit the number of Form 5472(s) to Schedule K, Line 8c. |
Schedule K, Line 19 - Control Group Code
(1) If Question 19 is marked Yes then edit a 1 in the right margin of the line.
Caution: Do not edit a code if the "No" box is marked.
Schedule K, Lines 20a, 20b and 20c (Corporate AMT)
(1) If Question 20b is marked "Yes" or Question 20c is marked "No", Form 4626 must be attached. Correspond if Form 4626 is not attached.
(2) Data will enter:
"0" if no box is checked.
"1" if "Yes" box checked.
"2" if "No" box checked.
"3" if "Both" boxes checked.
Schedule L - Balance Sheet
(1) Line 2a, Column (c) - Trade notes and accounts receivable. If there is no entry and:
Line 2b, Column (c) has an entry, compute and enter Line 2a(c) by adding Lines 2b(c) to Line 2b(d).
Line 2b, Column (c) is blank, edit the Line 2b(d) to Line 2a(c).
(2) Line 4, Columns (b) and (d) - Other current assets. Accept taxpayer's entry.
(3) Line 13, Column (d) - Total Assets. If blank, add Lines 1 through 12. Bracket if negative.
(4) Correspond for Form 1120-C, Schedule L if blank or missing.
Exception, do not correspond if:
The return is an "Amended" or "Final" return.
There are no significant entries on Page 1, Lines 1 through 24.
The "Cash" box is checked on Page 4, Schedule K, Line 1.
The "Yes" box is checked on Page 4, Schedule K, Line 14.
Schedule N (Form 1120) - Foreign Operations of U.S. Corporations
(1) For processing instructions, see IRM 3.11.16.11.47, Schedule N (Form 1120) - Foreign Operations of U.S. Corporation.
Schedule O (Form 1120) - Consent Plan and Apportionment Schedule for Controlled Groups
(1) The instructions in this subsection (paragraphs 2 through 4) only apply to Tax Period 201811 and prior. If a Schedule O is attached to a Form 1120-C for Tax Period 201812 and later, do the following:
If | Then |
|---|---|
Schedule O is in sequence order, | Line through Schedule O, Parts II and III. |
Schedule O is not in sequence order, | No action needed. |
(2) This subsection includes instructions for processing Schedule O (Form 1120).
(3) Schedule O (Form 1120) replaces the Controlled Group tax computation previously included on Schedule J, Lines 2a(1) through 2b(2) for 2005 and prior.
(4) If Controlled Group Code "1" or "4" is edited on a 2005 or prior year return, dummy a Schedule O and edit significant positive amounts as follows:
Schedule J, Line 2a(1) to Schedule O, Part II, Line 1, Column (c).
Schedule J, Line 2a(2) to Schedule O, Part II, Line 1, Column (d).
Schedule J, Line 2a(3) to Schedule O, Part II, Line 1, Column (e).
Schedule J, Line 2b(1) to Schedule O, Part III, Line 1, Column (f).
Schedule J, Line 2b(2) to Schedule O, Part III, Line 1, Column (g).
Taxable Income Apportionment - Part II, Line 1
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Edit Schedule O, Part II, Line 1 as follows:
If | And | Then |
|---|---|---|
Schedule O is attached and the parent corporation's taxable income apportionment amounts are present in Part II, | The amounts are entered on Line 1, | "X" any negative entries on Line 1, Columns (c), (d), and (e). |
Schedule O is attached and the parent corporation's taxable income apportionment amounts are present in Part II, | The amounts are entered on a line other than Line 1, |
|
A Controlled Group Code was edited; there are no entries on any of Schedule O, Part II, Line 1, Columns (c), (d), and (e) or Schedule O is missing, Note: A taxpayer will be a member of a controlled group with an allocation of zero ("0") in each of the three taxable income brackets. In this case no entry will be necessary on Line 1, Part II, Columns (c), (d), and (e); | Taxable income brackets are found on an attachment, | Edit the positive taxable income bracket amounts to Schedule O, Line 1, Columns (c), (d), and (e). Dummy a Schedule O if needed. |
A Controlled Group Code was edited; there are no entries on any of Schedule O, Part II, Line 1, Columns (c), (d), and (e) or Schedule O is missing, Note: A taxpayer will be a member of a controlled group with an allocation of zero ("0") in each of the three taxable income brackets. In this case no entry will be necessary on Line 1, Part II, Columns (c), (d), and (e); | No taxable income brackets are found, | Correspond for taxable income bracket amounts. Exception: Do not correspond if; there is no indication of an income tax liability on Form 1120-C, Schedule J, Line 2, the taxable income on Form 1120-C, Page 1, Line 27 is zero ("0") or a negative amount, or Schedule O (Form 1120), Page 1, Box 3c or Box 4a is checked. |
No Controlled Group Code was edited, see IRM 3.11.16.11.11(4), Schedule J, Page 3 - Controlled Group Code / Personal Service Corporation Code / Tax Computation. |
| Delete Schedule O. |
(3) Entries can be shown on an attached allocation/apportionment schedule. Some examples of the title of these schedules include:
"apportionment plan"
"apportionment consent plan"
"consent to apportionment"
"controlled group tax apportionment plan"
"surtax apportionment plan"
"allocation schedule"
(4) The attachment will identify the amounts by the tax rate and/or taxable income bracket. Column (c) is the $50,000 taxable income bracket taxed at 15 percent, Column (d) is the $25,000 taxable income bracket taxed at 25 percent and Column (e) is the $9,925,000 taxable income bracket taxed at 34 percent.
(5) Any attachment labeled as "controlled group tax calculation statement" is not an apportionment plan and not used to edit tax bracket amounts on Schedule O.
Income Tax Apportionment - Schedule O, Part III, Line 1
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Edit Part III, Line 1 as follows:
If | And | Then |
|---|---|---|
The parent corporation's income tax apportionment amounts are present in Part III, | The amounts are entered on Line 1, | "X" any negative entries on Line 1, Columns (f) and (g). |
The parent corporation's income tax apportionment amounts are present in Part III, | The amounts are entered on a line other than Line 1, |
|
A Controlled Group was edited, | Part III, Line 1, Column (f) is blank, | Check attachments for possible entry (additional 5 percent tax):
|
A Controlled Group was edited, | Part III, Line 1, Column (g) is blank, | Check attachments for possible entry (additional 3 percent tax):
|
Form 4626 - Corporate Alternative Minimum Tax (CAMT) (Tax Period 202301 and later)
(1) The instructions in this subsection apply to Tax Period 202301 and later.
(2) Place Form 4626 in sequence order if significant entries are present on any of the lines:
Question A is checked
Question B is checked
Part I, Line 1a, Column a
Part I, Line 1a, Column b
Part I, Line 1a, Column c
Part I, Line 1f, Column a
Part I, Line 1f, Column b
Part I, Line 1f, Column c
Part I, Line 5, Column a
Part I, Line 5, Column b
Part I, Line 5, Column c
Part I, Line 13, Column a
Part I, Line 13, Column b
Part I, Line 13, Column c
Part I, Line 15
Part II, Line 1a
Part II, Line 1f
Part II, Line 4
Part II, Line 5
Part II, Line 8
Part II, Line 9
Part II, Line 13
(3) Edit RPC "N" if Form 4626 (2023 revision and later) is attached. See IRM 3.11.16.33.8, Return Processing Code.
Form 4626 - Alternative Minimum Tax (Tax Period 201811 and prior)
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Taxpayers will sometimes include more than one Form 4626 with the return. If more than one Form 4626 is present, compute the totals and edit the right transcription lines.
(3) If Form 4626 is attached, perfect the following lines, as necessary:
Line 3 - Pre-Adjustment AMTI. If there is no entry on Line 3, but any of Lines 1 or Lines 2a through 2o have an entry, compute Line 3. Bracket if negative.
Line 4e - ACE Adjustment. Accept taxpayer's entry.
Line 6 - Alternative tax net operating loss deduction. Accept positive entry. "X" negative entry.
Line 11 - Alternative minimum tax foreign tax credit. Accept positive entry. "X" negative entry.
Form 4136 - Credit for Federal Tax Paid on Fuel
(1) For processing instructions, see IRM 3.11.16.19, Form 4136 - Credit for Federal Tax Paid on Fuels.
Form 8978 and Form 8978, Schedule A
(1) Form 8978 is valid for Tax Period ending 201712 and later.
(2) The "Source of review Year adjustments" checkboxes on Form 8978, Partner’s Additional Reporting Year Tax and Form 8978, Schedule A, Partners Additional Reporting Year Tax (Schedule of Adjustments), are valid for Tax Period 202112 and later.
(3) Place Form 8978 in sequence order if any of the following apply:
The "Source of review year adjustments" checkboxes are checked on Form 8978.
The "Source of review year adjustments" checkboxes are checked on Form 8978, Schedule A.
Significant entries are present on Form 8978, Part I, Line 14, Part II, Line 16, or Part III, Line 18.
(4) Edit the digit to the right margin of Form 8978, Part I row as follows:
If | And | Then |
|---|---|---|
Only Form 8978 is attached, | One or more of the boxes are checked, | Edit:
|
Form 8978 and Form 8978, Schedule A, are attached, | The boxes are marked the same on both forms, | Use the Form 8978 data and edit as shown above. |
Form 8978 and Form 8978, Schedule A, are attached, | The boxes are marked differently, | Use the Form 8978, Schedule A, data and edit as shown above. |
Only Form 8978, Schedule A, is attached, |
| No editing is required. |
Note: No editing is required on Lines 14, 16 and 18.
(5) Part I, Line 14 - Total additional reporting year tax.
(6) Part II, Line 16 - Total penalties.
(7) Part III, Line 18 - Total interest.
Form 8941 - Credit for Small Employer Health Insurance Premiums
(1) Place Form 8941 in sequence order if significant entries are present.
(2) For prior year revisions edit as follows:
If | And | Then |
|---|---|---|
2013 and 2012 revisions, | A significant amount is present on Line 1a or an EIN is present on Line 1b, |
|
Form 5884-B - New Hire Retention Credit
(1) Form 5884-B, New Hire Retention Credit is historical (2010 through 2011).
Form 3800 - General Business Credit
(1) Form 3800, General Business Credit, must be filed with corporate tax returns when a significant amount is present on Schedule J, Line 5c - General Business Credit. See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit (202301 and later) for more information.
(2) Place Form 3800 in sequence order if significant entries are present.
(3) If an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on any line of Form 3800 , Part III, Column (g) (Column (j) for 2023 and prior) correspond for the supporting credit form. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1a, 1b, 1c, 1e, 1f, 1h, 1i, 1j, 1k, 1l, 1m, 1n, 1p, 1s, 1t, 1w, 1x, 1y, 1aa, 1bb, 1zz, 3, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (b) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2023 - If Form 3800, Part III, Line 1b, 1c, 1e, 1f, 1g, 1h, 1i, 1j, 1k, 1m, 1n, 1p, 1s, 1t, 1u, 1w, 1x, 1y, 1aa, 1bb, 1cc, 1dd, 1ee, 1ff, 1zz, 3, 4a, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (d) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1b, 1c, 1e, 1f, 1g, 1h, 1i, 1j, 1k, 1m, 1n, 1p, 1q, 1s, 1t, 1u, 1v, 1w, 1x, 1y, 1aa, 1bb, 1cc, 1dd, 1ee, 1ff, 1gg, 1zz, 3, 4a, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (c) has an EIN, do not correspond and continue to process the return.
(4) See IRM 3.11.16.11.21, Line 5c - General Business Credit and Exhibit 3.11.16-19, Form 3800 - Prior Year Conversion Chart.
Form 8936, Schedule A, Clean Vehicle Credit Amount
(1) Sequence up to two Form 8936 Schedule A.
(2) The following lines can be transcribed for the first two Form 8936 Schedule A attached.
Part I, Line 2
Part I, Line 3
Part II, Line 9
Part II, Line 11
Part IV, Line 17
Part V, Line 26
(3) If more than two Form 8936 Schedule A are attached, edit an indicator of "1" on the second Form 8936 Schedule A to the bottom right margin.
(4) If there is an amount of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Schedule J, Line 5c for the Clean Vehicle credit (Form 3800, Part III, Lines 1y or 1aa) correspond for a Form 8936 or Form 8936, Schedule A if either is missing. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties
(1) Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties, is valid for Tax Period ending 202401 and later.
(2) Place Form 4255 in sequence order if the form is attached and significant entries are present in Part I, Columns (s) or (t). See IRM 3.11.16.33.2, Sequence - Form 1120-C.
(3) If the Tax Period is 202312 and prior, do not sequence the Form 4255.
(4) The following lines will be transcribed on Form 4255.
Form 4255, Part I | Credit From | Column |
|---|---|---|
Line 1a | Form 7207 | (s) |
Line 1a | Form 7207 | (t) |
Line 1b | Form 3468, Part III | (s) |
Line 1b | Form 3468, Part III | (t) |
Line 1c | Form 7210 | (s) |
Line 1c | Form 7210 | (t) |
Line 1d | Form 3468, Part IV | (s) |
Line 1d | Form 3468, Part IV | (t) |
Line 1e Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7218 | (s) |
Line 1e Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7218 | (t) |
Line 1f Caution: If the Tax Period is 202312 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7213, Part II | (s) |
Line 1f Caution: If the Tax Period is 202312 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7213, Part II | (t) |
Line 1g Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 3468, Part V | (s) |
Line 1g Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 3468, Part V | (t) |
Line 1h | Form 8936, Part V | (s) |
Line 1h | Form 8936, Part V | (t) |
Line 1i Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7211 | (s) |
Line 1i Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7211 | (t) |
Line 1j | Form 3468, Part VI | (s) |
Line 1j | Form 3468, Part VI | (t) |
Line 1k | Form 8835 | (s) |
Line 1k | Form 8835 | (t) |
Line 2a | Form 8933 | (s) |
Line 2a | Form 8933 | (t) |
Line 2b | Form 8911, Part I | (s) |
Line 2b | Form 8911, Part I | (t) |
(5) If there is an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Form 1120-C, Schedule J, Line 1e (Amount from Form 4255, Part I, Line 3 Column (q)), then correspond for a Form 4255 if missing. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Return Processing - Form 1120-F (OSPC Only)
(1) This subsection provides instructions for processing Form 1120-F, U.S. Income Tax Return of a Foreign Corporation.
(2) Form 1120-F can be filed on a calendar or fiscal year basis.
(3) Action Codes apply to Form 1120-F, see IRM 3.11.16.3.1, Action Codes.
(4) Check for proper batching of returns and re-batch as required.
If amounts are present on Form 1120-F, Section II, the return must be batched as Effectively Connected (Doc Code 67).
Section II is located on Pages 5 and 6 (2024 and 2023), Page 5 (2022 and 2020), 4 and 5 (2021, 2019, 2018, 2017, 2016 and later) and Pages 3 and 4 (2015 and prior).All others must be batched as Non-Effectively Connected (Doc Code 66).
(5) Place Form 1120-F in a designated basket if Form 1042-S is attached, and Form 1042-S has any of the following conditions:
Fails to list any Withholding Agent information in Boxes 12a through 12i and claims withholding reported on Line 5i of Form 1120-F.
Includes a "Substantiating Evidence Form" header with a "Disclaimer" at the bottom.
(6) To convert prior year tax returns, see Exhibit 3.11.16-10, Form 1120-F - Prior Year Conversion Chart.
Foreign Payments Practice (FPP) Review
(1) For processing year 2017 and later, the Foreign Payments Practice (FPP) Review will take place after the Form 1120-F has been edited, numbered and transcribed. C&E will initiate the review by editing Action Code "440" and Rejects will send the return to FPP for review. Rejects will also make any corrections to the reviewed return, see IRM 3.11.16.34.40, Form 1120-F - Refund and Credit Elect Returns, for specific editing instructions.
Sequence - Form 1120-F
(1) Document Perfection is responsible for arranging Form 1120-F in the following order when transcription line entries are present:
Pages 1, 2, 3, 4, 5, 6, 7, 8 and 9
Form 4626 (Tax period 202301 and later (2023 Revision and later))
Form 1120, Schedule D
Form 8949
Form 8996
Form 4136
Form 8978
Form 8941
Form 3800
Form 8997
Form 4255 (Tax period 2024 and later)
(2) It is not necessary to sequence the forms or schedules listed above if there are no transcription line entries.
(3) It is not necessary to sequence an Amended return. See IRM 3.11.16.3.9, Amended Returns, for more information.
EIN
(1) See IRM 3.11.16.6.2, Entity Perfection - Employer Identification Number (EIN).
Name Control
(1) All returns must have the Name Control underlined, see IRM 3.11.16.6.3, Entity Perfection - Name Control.
Address
(1) See IRM 3.11.16.6.5, Entity Perfection - Domestic Addresses and IRM 3.11.16.6.6, Entity Perfection - Foreign Address (OSPC).
Tax Period
(1) Edit Tax Period ending (except current calendar year) in YYMM format in the top right margin of the form, above the title. See IRM 3.11.16.7.1, Tax Period - Ending.
(2) Edit the Tax Period Beginning to the top left margin, above the Form 1120-F title area in MMDDYY format on an Initial, Final or Short Period return. See IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
(3) See IRM 3.11.16.7.3, Early Filed Returns - Full Year and Short Period through IRM 3.11.16.7.9, Short Period Returns - With Prepaid Credits, for editing Short Period returns.
Received Date
(1) Enter in MMDDYY format.
(2) Edit the received date in the dotted portion of Lines 1 through 4. See IRM 3.11.16.8, Received Date, and Exhibit 3.11.16-1 Due Date Charts.
Page 1, Line A - Country of Incorporation
(1) Edit Line A as follows:
If | Then |
|---|---|
The taxpayer has entered the name of a Foreign Country in Line A, | Write the two letter "Country Code" in the dotted area of Line A if not present. If the Country Code is present, underline the Country Code. See Acceptable Foreign Countries in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes, and Countries. Exception: Edit Country Code "OC" if the foreign country is not listed in Document 7475. |
If Line A does not have an entry, or "US," "USA," "America" | Edit "Country Code," "OC." |
More than one Foreign Country is present, | Edit the first entry only. See above for editing instructions. |
Note: Use "UK" for England, Northern Ireland, Scotland, and Wales. Also, "Holland" is not an official country name, but is part of The Netherlands.
Page 1, Question D(1) - Location of Books and Records and
Page 1, Question D(3) - Office or Place of Business
(1) If the address (city, province or state, and country) in Question D(1) is outside the U.S. (Foreign address, for example, XYZ LTD, London, England), or is a U.S. Possession enter Area Office Code "15" in the dotted area of Question D(1).
(2) If the address (city, province or state, and country) in Question D(1) is within the U.S. (domestic address), enter the right Area Office Code number. See Exhibit 3.11.16-7, Area Office Codes, (for example ABC Ltd., New York, NY enter "02") in the dotted area of Question D(1).
(3) If no address (city, province or state, and country) appears in Question D(1), or if "same as above" appears, then use the entity address data and follow step 1 or 2 above as appropriate.
(4) The checkbox in Question D(3) referring to an office or place of business in the U.S. requires special coding. Edit a U.S. Office Code Indicator as follows:
If the box is checked, edit a "1" to the left of the checkbox in the dotted portion of Question D(3).
If the box is not checked, edit a "2" to the left of the checkbox in the dotted portion of Question D(3).
Note: This code establishes the correct due date for Form 1120-F. It is not necessary to edit CCC "R" or CCC "D."
If Box D is not present (prior year returns) no action is required.
Computer Condition Codes
(1) Computer Condition Codes are edited vertically in the blank space to the right of Questions E through G (2015 and prior, H through L). Valid codes for Form 1120-F are B, C, D, E, F, G, H, I, L, M, O, R, S, T, V, W, X, Y, Z, 3, 5, 7, and 8. See IRM 3.11.16.9.1, Computer Condition Codes, and Figure 3.11.16-29.
Return Processing Code (RPC)
(1) Return Processing Code (RPC) is an alpha or numeric character used to alert the computer to a special condition or computation.
(2) RPCs are edited on Page 1, in the right margin next to Line 1 of Form 1120-F.
(3) Refer to the table below for an explanation of when to edit each RPC.
RPC | Explanation |
|---|---|
A | Form 5471, Schedule E, Income, War Profits, and Excess Profits Taxes Paid or Accrued, is attached. |
B | Form 5471, Schedule H, Current Earnings and Profits, is attached. |
C | Form 5471, Schedule I-1 Information for Global Intangible Low-Taxed Income, is attached. |
D | Form 5471, Schedule P, Previously Taxed Earnings and Profits of U.S. Shareholder of Certain Foreign Corporations, is attached. |
E | Form 8865, Schedule G, Statement of Application for the Gain Deferral Method Under Section 721(c), is attached. |
F | Form 8865, Schedule H, Acceleration Events and Exceptions Reporting Relating to Gain Deferral Method Under Section 721(c), is attached. |
H | Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, Part VIII, Cost Sharing Arrangement (CSA), has an entry (e.g., description, checkbox marked, percent, or an amount). |
J | For Tax Period 202201 - 202212, taxpayer writes IRA22 DPE on Form 3800,Form 1120-F, Line 5 or on an attachment.
|
K | For Tax Period 202201 - 202212, taxpayer writes IRA22TRE on Form 3800, an attachment or at the top of the return.
|
L | Form 7204, Consent to Extend the Time to Assess Tax Related to Contested Foreign Income Taxes - Provisional Foreign Tax Credit Agreement is attached. |
M | Form 7205, Energy Efficient Commercial Buildings Deduction is attached. |
N | Form 4626, Alternative Minimum Tax (2023 Revision and later) is attached or Form 1120-F, Schedule J, Line 3 shows a significant amount. |
1 | Form 8991, Tax on Base Erosion Payments of Taxpayers with Substantial Gross Receipts, is attached. |
4 | Form 8994, Employer Credit for Paid Family and Medical Leave, is attached. |
6 | Form 8996, Qualified Opportunity Fund, is attached. |
7 | Form 8990, Limitation on Business Interest Expense IRC 163(j), is attached. |
9 | Form 8997, Initial and Annual Statement of Opportunity Fund (QOF) Investments, is attached. |
Schedule M-3 Checkbox
(1) Edit Computer Condition Code "B" when the "Schedule M-3 attached" box on Page 1 is marked or Schedule M-3 is attached to Form 1120-F.
(2) Do not correspond for Schedule M-3 if the "Schedule M-3 attached" box is marked and Schedule M-3 is not attached.
NAICS Code
(1) The Principal Business Activity (PBA) Code is based on the North American Industry Classification System Code (NAICS). These codes are a high priority to the Service. It is critical data for Statistics of Income, Examination, Research and other Service organizations.
(2) The NAICS Code is a four or six digit code on Page 1, Item F(1) of Form 1120-F.
(3) A NAICS Code is required on all Form 1120-F returns.
Exception: Do not edit a NAICS Code on "G" coded returns (amended returns).
(4) Only one NAICS Code can be used on the return. Edit the NAICS Code as follows:
If | Then |
|---|---|
A legible six digit NAICS Code is shown on Page 1, Item F(1), | No editing is required |
A legible four digit NAICS Code is shown on Page 1, Item F(1), | No editing is required. |
There is more than one NAICS Code on Page 1, Item F(1), | Circle all but the first NAICS Code listed. |
Page 1, Item F(1) is blank, illegible or, other than four or six digits, | Edit NAICS Code "999999". |
Additional Form 1120-F Perfection
(1) This subsection addresses the editing of additional Form 1120-F information, see IRM 3.11.16.10, Additional Return Perfection.
Form 8844 Indicator
(1) Edit "1 - 1" in the left margin of Form 1120-F near Line 2.
See IRM 3.11.16.11.21.1, Form 8844, Empowerment Zone Employment Credit.
Audit Codes
(1) Edit a "2 -" followed by the right Audit Code(s) in the left margin near Line 2.
(2) Code "1" Inconsistent Filer Under IRC 6222(b) if:
Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request, is attached, or
The return has an attachment with the statement "Notice of Inconsistent Treatment under IRC 6222(b)," or
A statement showing the corporation is filing its return inconsistent with the way its partnership return was filed, or
Form 8275, Disclosure Statement, is attached, or a statement referring specifically to IRC 6662 (Disclosure), or
Form 8275-R, Regulation Disclosure Statement, is attached
(3) Audit Code "2" (International) will be computer generated for Form 1120-F returns. Do not edit Audit Code "2" in the left margin of the return.
(4) Code "3" if:
"Unusual Refundable Credits" are claimed.
Taxpayer quotes "Change of Accounting Period" under Headquarters "Grant Letter," or Revenue Procedure 2006-45 or 2006-46. Attach Form 4227, Intra-SC Reject or Routing Slip, to Examination (Audit) showing: "Taxpayer is changing accounting period pursuant to Headquarters "Grant Letter" or Revenue Procedure 2006-45 or 2006-46."
(5) Audit Code "C" - Edit Audit Code "C" when Form 8283 is attached and:
Box 2b is checked, or
Box 2b1 is checked, or
Line 3, Column (h) has an entry.
(6) Audit Code "W". Edit Audit Code W if any of the following conditions are present:
Form 3800, General Business Credit, Line 1p has an entry and Form 8908, Energy Efficient Home Credit, is not attached.
Form 3800, General Business Credit, Line 1p has an entry and Form 8908 is attached but Part II is missing.
Form 3800, General Business Credit, Line 1p has an entry and Form 8908 is attached but Part II, Column A, is incomplete or missing.
Note: Audit Code "W" is valid for Form 1120, Form 1120-F, Form 1120-REIT, and Form 1120-RIC.
Penalty and Interest Code
(1) Edit "4 - 1" in the left margin near Line 2 when precomputed delinquency penalty and/or interest is shown on a return with a received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
(2) This code is valid only within the unextended ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ some other situation, such as an estimated Tax Penalty, do not Code "4 - 1" and do not insert Condition Code "R." If only interest is shown, edit CCC "R."
Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Reserve Code
(1) Edit "5 - 4" in the left margin near Line 2 if Form 2220 is attached and Part II, Box 8 (prior year Part I, Box 3) is shown for a large corporation.
Installment Sale Indicator Code (Form 6252)
(1) Edit "6 -" followed by the right Installment Sale Indicator code in the left margin near Line 2 when Form 6252, Installment Sale Income, is present (e.g., "6 - 1"), see IRM 3.11.16.10.4, Installment Sale Indicator (Form 6252).
Form 1120-F Indicator Code
(1) Edit "7 - 1" in the left margin near Line 2 if Form 1120-F has both Non-Effectively (Section I) and Effectively (Section II) Connected Income, (e.g., money amounts on line 1 and 2 that are greater than zero) see Figure 3.11.16-30.
(2) Form 1120-F has two categories of income:
Categories of Income | Line Numbers |
|---|---|
Not effectively connected - Income from U.S. sources not effectively connected with the conduct of a trade or business in the United States |
|
Effectively Connected - income effectively connected with the conduct of a trade or business in the United States, |
|
Lines 1 through 5h - Computation of Tax Due or Overpayment
(1) Line 1 - Tax from Section I, Line 11, Page 4 for 2024 and 2023 form revisions. (Page 3 for 2022, 2021, 2020, 2019, 2018, 2017, and 2016 or Page 2 for 2015 and prior), on Income from U.S. Sources Not Effectively Connected. If blank, enter from Page 4, Section I, Line 11 from the appropriate tax form revision.
(2) Line 2 - Tax from Section II, Schedule J, Line 9, Page 6 for 2024 and 2023 form revisions. (Page 5 for 2022, 2021, 2020, 2019, 2018, 2017 and 2016 or Page 4 2015 and prior). If blank, enter from Schedule J, Line 9 from the appropriate tax form revision.
(3) Line 3 - Tax from Section III, Lines 6 and 10, Page 7 for 2024 and 2023 form revisions. (Page 6 for 2022, 2021, 2020, 2019, 2018, 2017, and 2016, or Page 5, 2015 and prior). If blank, compute and enter from Section III, Lines 6 and 10 based on the appropriate form revision.
(4) Line 4 - Total Tax.
Compute and enter Line 4 when it is blank and there are entries on any of Lines 1 through 3.
If pre-computed interest or delinquency penalty or an added charge is evident, ensure that it has not been included in Line 4.
"X" the Line 4 amount.
Delete the interest, penalty or additional charge from the Tax Due.
Edit the correct Total Tax to the left of the original entry.
If | Then |
|---|---|
The amount on Line 4 has pre-computed interest or penalty or additional charge, |
(5) Line 5a - Preceding Year’s Overpayment Credited to the Current Year. Accept taxpayer’s entry.
(6) Line 5b - Current Year’s Estimated Tax Payments.
(7) Line 5c - Current Year’s Refund Applied for on Form 4466. If there is a significant entry on Line 5c, see IRM 3.11.16.9.1.15, CCC "O" - Module Freeze.
(8) Line 5d - Reserved for Future Use. For 2023 and prior, this line was used to report the Total of Estimated Tax Payments. If Line 5d is blank but Lines 5a through 5c have significant entries, then compute and enter the total of Lines 5a and 5b, minus Line 5c on Line 5d.
(9) Line 5e - Form 7004 Credit.
(10) Line 5f - Regulated Investment Company Credit.
If | Then |
|---|---|
The Undistributed Capital Gain Credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 2439 is missing, | Correspond. |
Form 2439 shows a lesser amount, | Place an "X" to the left of the entry on Line 5f. Edit the lesser amount to the left of the "X." |
Form 2439 shows a larger amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, | Correspond. |
(11) Line 5g - Credit for Federal tax paid on fuels.
If Line 5g has a significant entry and Form 4136 is not present, correspond for the missing Form 4136. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
For Form 4136 processing instructions, see IRM 3.11.16.19, Form 4136 - Credit for Federal Tax Paid on Fuels.
(12) Line 5h - Reserved for future use.
Line 5h - Refundable credits from Form 8827 (revisions 2019 and prior):
If | Then |
|---|---|
The amount on Line 5h ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8827 is not attached, | Correspond for Form 8827. |
Line 5i - U.S. Income Tax Paid or Withheld at Source
(1) Line 5i - U.S. Income Tax Paid or Withheld at Source. The credit on Line 5i must be substantiated with a copy of:
Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons (Box 2).
Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax (Line 10).
Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding (Line 10).
If | And | Then |
|---|---|---|
Form 1042-S is used to substantiate the amount or part of the amount on Line 5i, | The taxpayer's name is not listed as the recipient in Box 13a of the Form 1042-S, Note: Box 13a cannot be a withholding rate pool or if the recipient is "unknown." |
|
(2) When an amount is present on Line 5i, follow the instructions below:
If | And | Then |
|---|---|---|
An amount is claimed on Line 5i, | Supporting withholding documentation (Form 1042-S, Form 8288-A or substantial evidence, or Form 8805) is not attached, Example: Substantial evidence includes closing documents or settlement statement which shows the amount of tax withheld. | Correspond for supporting withholding documentation. Exception: If a letter is attached, signed by the Competent Authority, accept the letter as proof of Form 1042-S withholding and do not correspond for the missing Form 1042-S.
Note: If the address on Form 1120-F is domestic, edit Action Code "211." |
An amount is claimed on Line 5i, | Form 1042-S, Form 8805, or a combination of these forms is attached and the total withholding substantiation is equal to or greater than the amount on Line 5i, | Continue processing. Exception: If the Form 1042-S is a consolidated Form 1042-S edit Action Code "440." |
An amount is claimed on Line 5i, | Form 1042-S, Form 8805, or a combination of these forms is attached and the total withholding substantiation is less than the amount on Line 5i, | Correspond for supporting withholding documentation. Exception: If a letter is attached, signed by the Competent Authority, accept the letter as proof of Form 1042-S withholding and do not correspond for the missing Form 1042-S. Note: Do not correspond if the difference is due to rounding.
Note: If the address on Form 1120-F is domestic, edit Action Code "211." |
(3) When FIRPTA credit Form 8288-A is claimed on Form 1120-F, Line 5i, or Form 8288-A is attached, the FIRPTA Unit must verify the credit. The verified FIRPTA credit will be entered on Form 13698, Credit Verification Slip.
Caution: If FIRPTA credit is reported on a line other than Line 5i, move the FIRPTA amount to Line 5i and continue processing following the instructions below.
If | And | Then |
|---|---|---|
Only FIRPTA credit, Form(s) 8288-A or substantial evidence is attached and:
|
|
|
Only FIRPTA credit, Form(s) 8288-A or substantial evidence is attached and:
| The total of attached Form(s) 8288-A, Box 2 is equal to or greater than Line 5i, |
|
Only FIRPTA credit, Form(s) 8288-A or substantial evidence is attached and:
| The total of attached Form(s) 8288-A, Box 2 is less than Line 5i, | Correspond for supporting withholding documentation:
Note: If the address on Form 1120-F is domestic, edit Action Code "211." |
Form(s) 1042-S, 8805, or a combination of these forms, is attached and Form(s) 8288-A or substantial evidence is also attached and:
| The total of attached Form 1042-S, Form 8805, and Form 8288-A is equal to or greater than Line 5i, |
Exception: If the verified FIRPTA amount is more than the Line 5i amount, move the Line 5i amount to the right of Line 5i. |
Form(s) 1042-S, 8805, or a combination of these forms, is attached and Form(s) 8288-A or substantial evidence is also attached and:
| The total of attached Form 1042-S, Form 8805, and Form 8288-A is less than Line 5i, | Correspond for withholding documentation: Exception: If a letter is attached, signed by the Competent Authority, accept the letter as proof of Form 1042-S withholding and do not correspond for the missing Form 1042-S.
Note: If the address on Form 1120-F is domestic, edit Action Code "211." |
Form 1042-S, or Form 8805, or a combination of these forms is attached and one or more Form 8288-A or substantial evidence is also attached and:
| The total of Form 1042-S, Form 8805, and Form 8288-A is equal to or greater than Line 5i, |
Exception: If the verified FIRPTA amount is more than the Line 5i amount, move the Line 5i amount to the right of Line 5i. |
Form 1042-S, or Form 8805, or a combination of these forms is attached and one or more Form 8288-A or substantial evidence is also attached and:
| The total of attached Form 1042-S, Form 8805, and Form 8288-A is less than Line 5i, | Correspond for withholding documentation: Exception: If a letter is attached, signed by the Competent Authority, accept the letter as proof of Form 1042-S withholding and do not correspond for the missing Form 1042-S.
Note: If the address on Form 1120-F is domestic, edit Action Code "211." |
(4) Any questionable withholding verification documents are to be referred to Examination Classification for review before allowance of credit.
(5) Line 5z (Line 5j for 2022 and prior) - Total Payments - "X" any entry identified by the taxpayer as "Backup Withholding" and edit it to Line 5f.
Note: Ensure there is no misplaced entry by the taxpayer before editing backup withholding to Line 5f. Review attachments to determine if the amount claimed is backup withholding and does not belong on another line.
(6) If the taxpayer has claimed backup withholding ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 1099 is not attached, correspond using Letter 118C, Corporate Return Incomplete for Processing: Form 1120, Form 1120 Series, Form 1120-S. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Note: Ensure there is no misplaced entry by the taxpayer before corresponding for backup withholding. Review attachments to determine if the amount claimed is backup withholding and does not belong on another line.
Line 5j - Elective Payment Election
(1) Line 5j - (Tax Period 202201-202211) - If a significant amount is present for an "Elective or Deemed Payment Election", edit RPC "J."
(2) Line 5j - (Tax Period 202301 and later) - "Elective Payment Election". Accept the taxpayer’s entry.
Lines 6 through 9 - Computation of Tax Due or Overpayment
(1) Line 6 - Estimated Tax Penalty. If Form 1120-F, Line 6 is blank, and Form 2220 is attached with a significant entry on Page 2, Line 38, then edit the amount from Form 2220, Page 2, Line 38 to Form 1120-F, Line 6. See IRM 3.11.16.11.6.6, Line 34 - Estimated Tax Penalty.
(2) Lines 7 and 8a - Amount owed/Overpayment. Edit as positive only. If the taxpayer enters a negative amount, do not bracket. Edit the proper entry to Line 7 or 8a if both are blank. Do all the following:
Add Lines 4 and 6. Subtract Line 5z (5j for 2022 and prior).
Edit the positive result on Line 7 or the negative result (do not bracket) on Line 8a.
Edit Action Code "440" on Form 1120-F returns claiming a refund (overpayment) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for current and prior year returns. See IRM 3.11.16.34.40, Form 1120-F - Refund and Credit Elect Returns.
(3) If pre-computed interest or delinquency penalty or additional charge is evident, ensure that it has not been included in Line 7 or reduced Line 8a.
If | Then |
|---|---|
The amount on Line 7 has pre-computed interest or penalty or added charge, |
|
The amount on Line 8a is reduced by pre-computed interest or penalty or added charge, |
|
(4) Line 8b - Amount of Overpayment Withheld under Chapter 3. Accept taxpayer's entry.
(5) Line 9 (left) - Credit to Next Year's ES Tax. Edit Action Code "440" on Form 1120-F returns claiming a credit to next year’s ES tax ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for current and prior year returns, see IRM 3.11.16.34.40, Form 1120-F - Refund and Credit Elect Returns, for additional instructions.
Total Assets - Ending
(1) Edit amount from Schedule L, Line 17, Column (d) (Line 15, Column (d) for 2006 and prior) to the bottom right corner of Page 1 in dollars only. Bracket if negative.
If Line 17, Column (d) is blank, compute Lines 1 through 16 if present and enter the amount to the bottom right corner of Page 1.
Paid Preparer Information
(1) See IRM 3.11.16.11.8, Paid Preparer Checkbox Indicator and IRM 3.11.16.11.9, Paid Preparer Section.
Page 2, Line M - Number of Forms 5472
(1) No entry is required for Line M unless Form 5472 is present.
(2) Edit Line M as follows:
If | And | Then |
|---|---|---|
A number is present for Line M, |
| No editing is required. |
Line M is blank, | One or More Form 5472 is attached, | Edit the number of Form 5472(s) in the dotted line area of Line M. |
Page 2, Question T - Name of Parent Corporation
(1) If Page 2, Question T meets one of the following conditions a Name Control and EIN must be edited:
Question T is checked "Yes"
Both the "Yes" and "No" boxes are checked
Question T is checked "No" or neither box is checked but a corporation's name or EIN is present (must be different than that on the return),
If something other than a corporation's name and/or EIN is present on Question T, circle it out.
If the name and/or EIN is the same as the return name and/or EIN, circle the name and/or EIN.
Underline the Name Control of the parent corporation shown on Question T. If Name Control is missing, search the return and attachments for the parent corporation Name Control and edit on Question T. If unable to find a Name Control, edit "XXXX."
Underline the EIN of the parent corporation shown on Question T. If the EIN is missing, search the return and attachments for the parent corporation EIN and edit on Question T. If unable to find the EIN, edit "12-9999999."
If | Then |
|---|---|
Question T is answered "No" or neither box is checked and a corporation's name and EIN are not present, | No editing is required. |
Question T is answered "No" or neither box is checked and a corporation's name and/or EIN are the same as the return name and/or EIN, | No editing is required. |
Question CC (Qualified Derivatives Dealer)
(1) Edit CCC "C" when Form 1120-F, Page 2, Question CC is answered "Yes," or if both the "Yes" and "No" boxes are checked.
Question HH (Question II for 2022 and prior) (Form 8996 - Qualified Opportunity Fund)
(1) If Form 1120-F, Page 3, Question HH (Question II for 2022 and prior), "Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund" is answered "Yes," search attachments for Form 8996. If Form 8996 is attached with an amount in Part III, Line 15, edit the amount to Page 3, Question HH (Question II for 2022 and prior).
Form 8996 RevisionsPrior Year Revision | Line |
|---|---|
2020 and later | Part III, Line 15 |
2019 | Part III, Line 14 |
2018 and 2017 | Part III, Line 13 |
(2) See IRM 3.11.16.17, Form 8996 - Qualified Opportunity Fund for transcription lines.
(3) If Form 8996, Qualified Opportunity Fund, is attached, edit Return Processing Code (RPC) "6," see IRM 3.11.16.34.12, Return Processing Code (RPC), for more information.
Question JJ(1), JJ(2), and JJ(3) (Corporate AMT)
(1) If Question JJ(2) is marked "Yes" or Question JJ(3) is marked "No", Form 4626 must be attached. Correspond if Form 4626 is not attached.
Note: Do not correspond for Form 4626 if the entire return is non-taxable (e.g., the return is zeros, blank, shows no tax data etc.).Continue processing the return.
(2) No editing is required.
(3) Data will enter:
"0" if no box is checked.
"1" if "Yes" box checked.
"2" if "No" box checked.
"3" if "Both" boxes checked.
Section II - Income and Deductions
(1) Line 1c - Gross receipts or sales less returns and allowances. Accept taxpayer's entry.
(2) Line 5 - Interest income. Accept taxpayer's entry.
(3) Line 6 - Gross rents. Accept taxpayer's entry.
(4) Line 8 - Capital gain net income. If there is a significant entry and Schedule D (Form 1120) is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(5) Line 9 - Net gain or (loss) from Form 4797, Part II, Line 17 - If there is an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 4797 or similar schedule is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(6) Line 11 - Total income. If blank, compute by adding Lines 3 through 10. Bracket if negative.
(7) Line 13 - Salaries and Wages. Accept taxpayer's entry.
(8) Line 28 - Total deductions. If blank, compute and enter Line 28 if there are entries on any of Lines 12 through 27. Bracket if negative.
(9) Line 29 - Taxable income before Net Operating Loss (NOL). If blank, and there are entries on either of Lines 11 or 28, compute by subtracting Line 28 from Line 11.
Schedule J - Tax Computation
(1) Line 2a - Base Erosion Minimum Tax amount. Accept taxpayer’s entry.
(2) Line 2b - Amount from Form 4255, Part I, Line 3 Column (q) - If Schedule J, Line 2b (Amount from Form 4255, Part I, Line 3 Column (q)) has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 4255 is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(3) Line 2c - Other Chapter 1 Tax. Accept taxpayer’s entry.
(4) Line 3 - Corporate Alternative Minimum Tax (Form 4626 (2023 Revision)). Correspond for Form 4626 if Line 3 has a significant entry and Form 4626 is not attached.
(5) For Tax Period 201811 and prior, edit Tax Preference Code "1" to the bottom center, Page 1 when adjustments and preferences items ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ are present on Lines 2a through 2o, Form 4626. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
(6) Take the following actions for Lines 3, 5a, 5b, 5c, 5d, 8a and 8b:
If | Then |
|---|---|
The return is for Tax Period 201811 and prior and the entry on Line 3 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 4626 is missing, | Correspond. |
The entry on Line 5a is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 1118 is missing, | Correspond. |
There is an entry on Line 5b for General Business Credit, or Form 3800 is attached, | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
The entry on Line 5c is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8827 is missing, | Correspond. |
There is an entry on Line 5d for Form 8912, | See IRM 3.11.16.11.21.4, Schedule J, Line 5e - Form 8912, Credit to Holders of Tax Credit Bonds. |
The Tax Period is 202201 through 202212 and a significant amount is present on Line 8 and the taxpayer writes CAMT or IRA AMT or indicates the amount is for Corporate AMT, | Completely edit the return and give to the lead. The lead will:
|
The entry on Line 8a is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 4255 is missing, | Correspond. |
The entry on Line 8b is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8611 is missing, | Correspond. |
Schedule W - Overpayment Resulting from Tax Deducted and Withheld Under Chapter 3
(1) The Schedule W was previously a worksheet in the instructions of the Form 1120-F. It is now part of the form to aid in the calculations of the overpayments resulting from tax deducted and withheld under Chapter 3.
(2) If the Form 1120-F, Page 1, Line 8b has a significant entry, edit Schedule W, Lines 1 and 3 as follows.
(3) Verify that Schedule W, Line 1 matches Form 1120 -F, Page 1, Line 5i.
If | Then |
|---|---|
The total of Form 1120-F, Page 1, Line 5i (including any amounts to the right and left of Line 5i) match the amount on the Schedule W, Line 1, | No editing is required. |
The total of Form 1120-F, Page 1, Line 5i (including any amounts to the right and left of Line 5i) do not match the amount on the Schedule W, Line 1, | Edit the total of Form 1120-F, Line 5i (including any amounts to the right and left of Line 5i) to Schedule W, Line 1. |
(4) Accept the taxpayer's figure for Schedule W, Line 3.
(5) Dummy a missing Schedule W if there is an amount on Form 1120-F, Page 1, Line 8b as follows:
Edit the amount on Form 1120-F, Page 1, Line 5i to Form 1120-F, Schedule W, Line 1.
Sequence the Schedule W.
Note: If correspondence is required for supporting withholding documentation for Line 5i and Schedule W is missing, correspond for Schedule W at the same time as the supporting withholding documentation. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Form 4626 - Corporate Alternative Minimum Tax (CAMT) (Tax Period 202301 and later)
(1) The instructions in this subsection apply to Tax Period 202301 and later.
(2) Place Form 4626 in sequence order if significant entries are present on any of the lines:
Question A is checked
Question B is checked
Part I, Line 1a, Column a
Part I, Line 1a, Column b
Part I, Line 1a, Column c
Part I, Line 1f, Column a
Part I, Line 1f, Column b
Part I, Line 1f, Column c
Part I, Line 5, Column a
Part I, Line 5, Column b
Part I, Line 5, Column c
Part I, Line 13, Column a
Part I, Line 13, Column b
Part I, Line 13, Column c
Part I, Line 15
Part II, Line 1a
Part II, Line 1f
Part II, Line 4
Part II, Line 5
Part II, Line 8
Part II, Line 9
Part II, Line 13
(3) Edit RPC "N" if Form 4626 (2023 revision and later) is attached. See IRM 3.11.16.34.11, Return Processing Code.
Form 1120 - Schedule D
(1) The checkbox above Part I is the only transcription line on Schedule D when attached to Form 1120-F.
Form 8949 - Sales and Other Dispositions of Capital Assets
(1) For processing instructions, see IRM 3.11.16.16, Form 8949 - Sales and Other Dispositions of Capital Assets.
Form 8996 - Qualified Opportunity Fund
(1) For processing instructions, see IRM 3.11.16.17, Form 8996 - Qualified Opportunity Fund.
Form 4136 - Credits for Federal Tax Paid on Fuel
(1) For processing instructions, see IRM 3.11.16.19, Form 4136 - Credit for Federal Tax Paid on Fuels.
Form 8978 and Form 8978, Schedule A
(1) Form 8978 is valid for Tax Period ending 201712 and later.
(2) The "Source of review year adjustments" checkboxes on Form 8978, Partner’s Additional Reporting Year Tax and Form 8978, Schedule A, Partner’s Additional Reporting Year Tax (Schedule of Adjustments), are valid for Tax Period 202112 and later.
(3) Place Form 8978 in sequence order if any of the following apply:
The "Source of review year adjustments" checkboxes are checked on Form 8978.
The "Source of review year adjustments" checkboxes are checked on Form 8978, Schedule A.
Significant entries are present on Form 8978, Part I, Line 14, Part II, Line 16, or Part III, Line 18.
Note: Any information from the checkboxes on Form 8978, Schedule A, will be transcribed on Form 8978.
(4) Edit the digit to the right margin of Form 8978, Part I row as follows:
If | And | Then |
|---|---|---|
Only Form 8978 is attached, | One or more of the boxes are checked, | Edit:
|
Form 8978 and Form 8978, Schedule A, are attached, | The boxes are marked the same on both forms, | Use the Form 8978 data and edit as shown above. |
Form 8978 and Form 8978, Schedule A, are attached, | The boxes are marked differently, | Use the Form 8978, Schedule A, data and edit as shown above. |
Only Form 8978, Schedule A, is attached, |
| No editing is required. |
Note: No editing is required on Lines 14, 16 and 18.
(5) Part I, Line 14 - Total Increase/decrease to reporting year tax.
(6) Part II, Line 16 - Total Penalties.
(7) Part III, Line 18 - Total Interest.
Form 8941 - Credit for Small Employer Health Insurance Premiums
(1) Place Form 8941 in sequence order if significant entries are present.
(2) For prior year revisions edit as follows:
If | And | Then |
|---|---|---|
2013 and 2012 revisions, | a significant amount is present on Line 1a or an EIN is present on Line 1b, |
|
Form 5884-B - New Hire Retention Credit
(1) Form 5884-B, New Hire Retention Credit is historical (2010 through 2011).
Form 3800 - General Business Credit
(1) Form 3800, General Business Credit, must be filed with corporate tax returns when a significant amount is present on Schedule J, Line 5b - General Business Credit. See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit (202301 and later) for more information.
(2) Place Form 3800 in sequence order if significant entries are present.
(3) If an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on any line of Form 3800 , Part III, Column (g) (Column (j) for 2023 and prior) correspond for the supporting credit form. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1a, 1b, 1c, 1e, 1f, 1h, 1i, 1j, 1k, 1l, 1m, 1n, 1p, 1s, 1t, 1w, 1x, 1y, 1aa, 1bb, 1zz, 3, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (b) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2023 - If Form 3800, Part III, Line 1b, 1c, 1e, 1f, 1g, 1h, 1i, 1j, 1k, 1m, 1n, 1p, 1s, 1t, 1u, 1w, 1x, 1y, 1aa, 1bb, 1cc, 1dd, 1ee, 1ff, 1zz, 3, 4a, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (d) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1b, 1c, 1e, 1f, 1g, 1h, 1i, 1j, 1k, 1m, 1n, 1p, 1q, 1s, 1t, 1u, 1v, 1w, 1x, 1y, 1aa, 1bb, 1cc, 1dd, 1ee, 1ff, 1gg, 1zz, 3, 4a, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (c) has an EIN, do not correspond and continue to process the return.
(4) See IRM 3.11.16.11.21, Line 5c - General Business Credit and Exhibit 3.11.16-19, Form 3800 - Prior Year Conversion Chart.
Form 8997 - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments
(1) Form 8997 is valid for Tax Period ending 201901 and .
(2) Place Form 8997 in sequence order if the form is attached and significant entries are present in any of Parts I, II, III or IV.
(3) No editing is required except for the indicator in Parts I, II, III or IV. Transcription is from Row 1 of each part.
(4) Part I - Total QOF Investment Holdings Due to Deferrals before Beginning of Tax Year (Row 1)
Column a - EIN
Column b - Date
Column d - Special Gain Code
Column e - Amount of short-term deferred gain remaining in QOF
Column f - Amount of long-term deferred gain remaining in QOF
Part I Indicator - If more than one row of tax data is present in Part I, edit a "1" in the right margin of Part I, Row 1.
Line 2, Column e - Total amount
Line 2, Column f - Total amount
(5) Part II - Current Tax Year Capital Gains Deferred by Investing in QOF (Row 1)
Column a - EIN
Column b - Date
Column d - Special Gain Code
Column e - Amount of short-term deferred gain remaining in QOF
Column f - Amount of long-term deferred gain remaining in QOF
Part II Indicator - If more than one row of tax data is present in Part II, edit a "1" in the right margin of Part II, Row 2.
Line 2, Column e Total amount
Line 2, Column f Total amount
(6) Part III - QOF Investments for Which Gain Is Included During Current Tax Year (Row 1)
Column a - EIN
Column b - Date
Column d - Special Gain Code
Column e - Amount of previously deferred short-term gain now included in taxable income
Column f - Amount of previously deferred long-term gain now included in taxable income
Part III Indicator - If more than one row of tax data is present in Part III, edit a "1" in the right margin of Part III, Row 3.
Line 2, Column e Total amount
Line 2, Column f Total amount
(7) Part IV - Total QOF Investment Holdings at Year End Due to Deferrals (Row 1)
Column a - EIN
Column b - Date
Column d - Special Gain Code
Column e - Amount of short-term deferred gain invested in QOF
Column f - Amount of long-term deferred gain invested in QOF
Part IV Indicator - If more than one row of tax data is present in Part IV, edit a "1" in the right margin of Part IV, Row 4.
Line 2, Column e Total amount
Line 2, Column f Total amount
(8) If Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, is attached, edit Return Processing Code (RPC) "9." See IRM 3.11.16.34.11 Return Processing Code (RPC),for more information.
Form 4255 - Certain Credit Recapture, Excessive Payments, and Penalties
(1) Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties, is valid for Tax Period ending 202401 and later.
(2) Place Form 4255 in sequence order if the form is attached and significant entries are present in Part I, Columns (s) or (t). See IRM 3.11.16.34.2, Sequence - Form 1120-F.
(3) If the Tax Period is 202312 and prior, do not sequence the Form 4255.
(4) The following lines will be transcribed on Form 4255.
Form 4255, Part I | Credit From | Column |
|---|---|---|
Line 1a | Form 7207 | (s) |
Line 1a | Form 7207 | (t) |
Line 1b | Form 3468, Part III | (s) |
Line 1b | Form 3468, Part III | (t) |
Line 1c | Form 7210 | (s) |
Line 1c | Form 7210 | (t) |
Line 1d | Form 3468, Part IV | (s) |
Line 1d | Form 3468, Part IV | (t) |
Line 1e Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7218 | (s) |
Line 1e Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7218 | (t) |
Line 1f Caution: If the Tax Period is 202312 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7213, Part II | (s) |
Line 1f Caution: If the Tax Period is 202312 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7213, Part II | (t) |
Line 1g Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 3468, Part V | (s) |
Line 1g Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 3468, Part V | (t) |
Line 1h | Form 8936, Part V | (s) |
Line 1h | Form 8936, Part V | (t) |
Line 1i Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7211 | (s) |
Line 1i Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7211 | (t) |
Line 1j | Form 3468, Part VI | (s) |
Line 1j | Form 3468, Part VI | (t) |
Line 1k | Form 8835 | (s) |
Line 1k | Form 8835 | (t) |
Line 2a | Form 8933 | (s) |
Line 2a | Form 8933 | (t) |
Line 2b | Form 8911, Part I | (s) |
Line 2b | Form 8911, Part I | (t) |
(5) If there is an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Form 1120-F, Schedule J, Line 2b, Amount from Form 4255, Part I, Line 3, Column (q), then correspond for a Form 4255 if missing. Form 3800 - General Business Credit. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Form 1120-F - Refund and Credit Elect Returns
(1) Edit an Action Code "440" on Form 1120-F returns claiming a:
Line 8a Overpayment - Refund ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for current and prior year returns.
Line 9 (left) - Credited to next year’s estimated tax ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for current and prior year returns.
Return Processing - Form 1120-FSC (OSPC only)
(1) This subsection provides instructions for processing Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation.
(2) Action Codes are not applicable to this form. Computer Condition Code "U" will continue to be used.
(3) To convert prior year tax returns, see Exhibit 3.11.16-11, Form 1120-FSC - Prior Year Conversion Chart.
Sequence - Form 1120-FSC
(1) Document Perfection is responsible for arranging Form 1120-FSC in the following order when transcription line entries are present:
Pages 1, 2, 3, 4, 5, and 6
Form 4136
Note: It is not necessary to sequence Form 4136 if there are no transcription line entries.
EIN
(1) See IRM 3.11.16.6.2, Entity Perfection - Employer Identification Number (EIN).
Entity Perfection - Name Control and "In-Care-Of" Name
(1) All returns must have the Name Control underlined, see IRM 3.11.16.6.3, Entity Perfection - Name Control and IRM 3.11.16.6.4, Entity Perfection - "In-Care-Of" Name.
Address
(1) See IRM 3.11.16.6.5, Entity Perfection - Domestic Addresses, and IRM 3.11.16.6.6, Entity Perfection - Foreign Address (OSPC).
Tax Period
(1) Edit Tax Period ending (except current calendar year) in YYMM format to the right of the title on Page 1 of the return, see IRM 3.11.16.7.1, Tax Period - Ending.
(2) Edit the Tax Period Beginning to the left of Form 1120-FSC title area in MMDDYY format on an Initial, Final or Short Period return, see IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
(3) See IRM 3.11.16.7.3, Early Filed Returns - Full Year and Short Period, through IRM 3.11.16.7.9, Short Period Returns - With Prepaid Credits, for editing Short Period returns.
Received Date
(1) Enter in MMDDYY format.
(2) Edit the received date in the dotted portion of Line 1, see IRM 3.11.16.8, Received Date.
Computer Condition Codes
(1) Edit in the dotted portion of Line 4. Valid codes for Form 1120-FSC are A, B, C, D, E, F, G, L, M, N, O, R, S, T, U, W, X, Y, 1, 3, 7, and 8. See IRM 3.11.16.9.1, Computer Condition Codes.
NAICS Code - Page 2, Schedule A, Additional Information, Line 1(a)
(1) The Principal Business Activity (PBA) Code is based on the North American Industry Classification System Code (NAICS). These codes are a high priority to the Service. It is critical data for Statistics of Income, Examination, Research, and other Service organizations.
(2) The NAICS Code is a four or six digit code on Page 2, Schedule A, Additional Information, Line 1a of Form 1120-FSC.
(3) A NAICS Code is required on all Form 1120-FSC returns.
Exception: Do not edit a NAICS Code on "G" coded returns (amended returns).
(4) Edit this code above the form title, Page 1 of Form 1120-FSC. See Figure 3.11.16-33. 
(5) Only one NAICS Code can be used on the return. Edit the NAICS Code as follows:
If | Then |
|---|---|
A legible four or six digit NAICS Code is shown on Schedule A, Additional Information, Line 1a, | Edit the NAICS Code on Page 1 above the form title. |
There is more than one NAICS Code on Schedule A, Additional Information, Line 1a, | Edit the first NAICS Code listed on Page 1 above the form title. |
Schedule A, Additional Information, Line 1a is blank, illegible, other than four or six digits, | Edit NAICS Code "999999." |
Foreign Country/U.S. Possession - Box A
(1) Edit Box A as follows:
If | Then |
|---|---|
The taxpayer has entered the name of a Foreign Country or U.S. Possession in Box A, | Edit the two letter "Country Code" to the right of Box D. See Acceptable Foreign Countries in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes, and Countries. Exception: Edit Country Code "OC" if the foreign country is not listed in Document 7475.
|
Line A does not have an entry, | Edit "Country Code" "OC" to the right of Box D. |
More than one Foreign Country or U.S. Possession is present, | Edit the "Country Code" of the first Foreign Country/U.S. Possession shown. |
Note: Use "UK" for England, Northern Ireland, Scotland, and Wales. Also, "Holland" is not an official country name, but is part of The Netherlands.
Type of Election - Box B
(1) Edit Code "1" to the left of Box B if the "FSC" Box is marked.
(2) Edit Code "2" to the left of Box B if the "Small FSC" box is marked.
(3) If Box B is blank or both boxes are marked, do not enter a code.
Name/Principal Shareholder - Line 1a and Name/Parent-subsidiary Controlled Group - Line 2a
(1) Underline the Name Control on Question 1a.
(2) Underline the Name Control on Question 2a. See Figure 3.11.16-35. 
EIN/Principal Shareholder - Line 1b and Name/Parent-subsidiary Controlled Group - Line 2b
(1) Perfect the EIN on Questions 1b and 2b. If the EIN is missing check attachments. If not found, research on IDRS. If not found on IDRS, no action is required for Line 1b. An EIN is required on Line 2b if Question 2 is checked "Yes." See IRM 3.11.16.35.13, Parent-Subsidiary Controlled Group - Question 2, Page 1.
Parent-Subsidiary Controlled Group - Question 2, Page 1
(1) If Question 2, "Is the FSC a subsidiary in a parent-subsidiary controlled group?" meets one of the following conditions, a Name Control and EIN must be edited:
If | Then |
|---|---|
|
|
Question 2 is answered "No" or neither box is checked and a corporation's name and EIN are not present, | No editing is required. |
Question 2 is answered "No" or neither box is checked and a corporation's name and/or EIN are the same as the return name and/or EIN, | No editing is required. |
Total Assets (Corporations Only) - Box 1d and
Total Assets (Consolidated) - Box 2d
(1) Perfect the total assets amount in dollars only.
If | And | Then |
|---|---|---|
The amount in Box 1d is greater than the amount in Box 2d, or | Box 1d is $1 or more, | "X" the amount in Box 2d and edit the Box 1d amount to Box 2d. |
The amount in Box 1d is greater than the amount in Box 2d, or | Box 1d is less than $1, negative, zero, dash, or none, | Edit the Box E, Total assets amount to Box 2d if the amount is $1 or more. |
The amount in Box 1d is greater than the amount in Box 2d, or | Box E, Total assets is blank, less than $1, negative, zero, dash, or none, | No action is required. |
Paid Preparer Information
(1) See IRM 3.11.16.11.8, Paid Preparer Checkbox Indicator, and IRM 3.11.16.11.9, Paid Preparer Section.
Additional Form 1120-FSC Perfection
(1) This subsection addresses the editing of additional Form 1120-FSC information. See IRM 3.11.16.10, Additional Return Perfection.
Audit Codes
(1) Edit a "2 -" followed by the right Audit Code(s) in the left margin near Line 2 (e.g., "2 - 1").
(2) Code "1" (Inconsistent Filer Under Section 6222(b)) if:
Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request is attached, or
The return has an attachment with the statement "Notice of Inconsistent Treatment under IRC 6222(b)," or
A statement showing the corporation is filing the return inconsistent with the way the partnership return was filed, or.
Form 8275 is attached, or a statement referring specifically to IRC 6662.
(3) Code "2" if Form 5472 is attached.
(4) Code "3" if:
"Unusual Refundable Credits" are claimed.
Taxpayer quotes "Change of Accounting Period" under Headquarters "Grant Letter," or Revenue Procedure 2006-45 or 2006-46. Attach Form 4227, Intra-SC Reject or Routing Slip, to Examination (Audit) showing: "Taxpayer is changing accounting period pursuant to Headquarters "Grant Letter" or Revenue Procedure 2006-45 or 2006-46."
(5) Code "4" if return is a Joint Committee Case. For a definition of a Joint Committee Case, see IRM 3.11.16.9.1.14, CCC "N" - Joint Committee Case.
Penalty and Interest Code
(1) Edit "4 - 1" in the left margin near Line 2 when precomputed delinquency penalty and/or interest is shown on a return with a received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
(2) This code is valid only within the unextended ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ some other situation, such as an estimated Tax Penalty, do not Code "4 - 1" and do not insert Condition Code "R." If only interest is shown, edit CCC "R."
Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Reserve Code
(1) Edit "5 - 4" in the left margin near Line 2 if Form 2220 is attached and Part II, Box 8 (prior year Part I, Box 3) is shown for large corporation.
Installment Sale Indicator (Form 6252)
(1) Edit "6 -" followed by the right Installment Sale Indicator code in the left margin near Line 2 when Form 6252, Installment Sale Income, is present (e.g., "6 - 1"). See IRM 3.11.16.10.4, Installment Sale Indicator (Form 6252).
Total Assets - Box E
(1) Compare the amount in Box E to the amount on Schedule L, Line 15, Column (d).
(2) If the amount to be edited will change, then resolve the difference in favor of the Schedule L amount and correct Box E. Bracket if negative. See Figure 3.11.16-36.
Exception: The return is a "Final" return, resolve the difference in favor of the Box E amount.
(3) If Schedule L, Line 15, Column (d) is blank, then compute Lines 1 through 14, Columns (c) and (d) if present and compare with the amount in Box E.
(4) If Box E is blank, enter Total Assets in dollars only from Schedule L, Line 15, Column (d). Bracket if negative.
(5) No editing is required if Schedule L is not present or if there is no significant entry on Schedule L, Line 15, Column (d).
(6) If the amount in Box E is for cents only (e.g., $.01 - $.99), place an "X" to the left of the entry.
Tax Data Perfection, Page 1 - Tax and Payments
(1) Line 1 - Total tax.
If blank, edit from Schedule J, Line 6.
If pre-computed interest or delinquency penalty or an additional charge is evident, ensure that it has not been included in Line 1.
If | Then |
|---|---|
The amount on Line 1 has pre-computed interest or penalty or additional charge, |
|
(2) Line 2c - If there is a significant entry on Line 2c, refer to CCC "O" procedures. See IRM 3.11.16.9.1.15, CCC "O" - Module Freeze.
(3) Line 2d - Total of estimated tax payments. If blank, compute and enter the total of Lines 2a and 2b, minus Line 2c on Line 2d.
(4) Line 2e - Tax deposited with Form 7004.
(5) Line 2f - Credit for Federal tax paid on fuels.
If Line 2f has a significant entry and Form 4136 is not present, correspond for the missing Form 4136. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
For Form 4136 processing instructions. See IRM 3.11.16.19, Form 4136 - Credit for Federal Tax Paid on Fuels.
(6) Line 2g - Tax paid or withheld at source, Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding.
If | And | Then |
|---|---|---|
Form 1042-S is used to substantiate the amount or part of the amount on Line 2g, | The taxpayer's name is not listed as the recipient in Box 13a of the Form 1042-S, Note: Box 13a cannot be a withholding rate pool. |
|
Form 1042-S is not attached to substantiate the amount on Line 2g, |
| Correspond for Form 1042-S. Exception: If a letter is attached, signed by the Competent Authority, accept the letter as proof of Form 1042-S withholding and do not correspond for the missing Form 1042-S. |
(7) When FIRPTA credit (Form 8288-A) is claimed on Form 1120-FSC, Line 2g, or Form 8288-A is attached, the FIRPTA unit must verify the credit. The verified FIRPTA credit will be entered on Form 13698, International Credit(s) Verification Slip:
If | Then |
|---|---|
The total amount of FIRPTA credit, Form 8288-A, claimed on Form 1120-FSC is verified by the FIRPTA International Unit, | Accept the taxpayer's figure and edit the verified FIRPTA credit to the right of Line 2g. |
The total amount of FIRPTA credit, Form 8288-A, claimed is fully verified and Form(s) 1042/8805 credits are also present, |
|
The total amount of FIRPTA credits, Form 8288-A, are not verified or are not fully verified and Forms 1042/8805 credits are also present, | "X" the amount on Line 2g and subtract the unverified FIRPTA credit from the 2g amount. |
If Line 2g has any amount and is identified as FIRPTA or Form 8288-A credit and the Form 8288-A or substantial evidence is not attached, | Correspond |
(8) Line 3 - Estimated tax penalty. If blank, edit amount from Form 2220, Line 38 to Line 3. See IRM 3.11.16.11.6.6, Line 34 - Estimated Tax Penalty.
(9) Lines 4 and 5 - Tax Due/Overpayment. Edit as positive only. If the taxpayer enters a negative amount, do not bracket. Edit the proper entry to Line 4 or 5 if both are blank. Do both the following:
Add Lines 1 and 3. Subtract Line 2h.
Edit the positive result on Line 4 or the negative result (do not bracket) on Line 5.
(10) If pre-computed interest or delinquency penalty or additional charge is evident, ensure that it has not been included in Line 4 or reduced Line 5.
If | Then |
|---|---|
The amount on Line 4 has pre-computed interest or penalty or additional charge, |
|
The amount on Line 5 is reduced by pre-computed interest or penalty or additional charge, |
|
(11) Line 6 (center) - Credit elect to next year tax.
Schedule B, Page 3, Line 18 - Taxable Income or (Loss)
(1) Schedule B, Page 3, Line 18 - Taxable Income or (loss) is edited in dollars only.
If blank, total Lines 16 and 17 and enter on Line 18. Bracket if negative.
Schedule G, Page 5, Line 4 - Depreciation from Form 4562
(1) Line 4, Depreciation - Column (a), Using administrative pricing rules and Column (b), Not using administrative pricing rules.
Schedule J, Page 5, Tax Preference Code and Foreign Tax Credit
(1) For Tax Period 201811 and prior, edit Tax Preference Code "1" to the bottom center margin, Page 1 if an amount is present on Schedule J, Line 3.
(2) Line 5 - If ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 1118, Foreign Tax Credit (Corporations), is missing, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Form 4136 - Credit for Federal Tax Paid on Fuels
(1) For processing instructions. See IRM 3.11.16.19, Form 4136 - Credit for Federal Tax Paid on Fuels.
Return Processing - Form 1120-H
(1) This Subsection provides instructions for processing Form 1120-H, U.S. Income Tax Return for Homeowners Associations. Form 1120-H is an ERS return; Action Codes .
(2) A condominium management association, residential real estate management association, or timeshare association files Form 1120-H to elect the application of section 528.
(3) Action Codes apply to Form 1120-H, see IRM 3.11.16.3.1, Action Codes.
(4) To convert prior year tax returns, see Exhibit 3.11.16-12, Form 1120-H - Prior Year Conversion Chart.
Sequence - Form 1120-H
(1) Document Perfection is responsible for arranging Form 1120-H in the following order when transcription line entries are present:
Page 1
Form 4136
Form 8978
Form 8941
Form 3800
Form 4255 (Tax period 2024 and later)
(2) It is not necessary to sequence the forms or schedules listed above if there are no transcription line entries.
(3) It is not necessary to sequence an Amended return. See IRM 3.11.16.3.9, Amended Returns, for more information.”
EIN
(1) See IRM 3.11.16.6.2, Entity Perfection - Employer Identification Number (EIN).
Name Control and Address
(1) Underline the Name Control on all Form 1120-H returns. See IRM 3.11.16.6.3, Entity Perfection - Name Control, through IRM 3.11.16.6.6, Entity Perfection - Foreign Address (OSPC).
Tax Period
(1) Edit Tax Period ending (except current calendar year) in YYMM format to the right of the title on Page 1 of the return, see IRM 3.11.16.7.1, Tax Period - Ending.
(2) Edit the Tax Period Beginning to the left of Form 1120-H title area in MMDDYY format on an Initial, Final or Short Period return. See IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
(3) See IRM 3.11.16.7.3, Early Filed Returns - Full Year and Short Period through IRM 3.11.16.7.9, Short Period Returns - With Prepaid Credits, for editing Short Period returns.
Received Date
(1) Edit the received date in the dotted portion of Line 11. See IRM 3.11.16.8, Received Date.
Computer Condition Codes
(1) See IRM 3.11.16.9.1, Computer Condition Codes.
(2) Valid codes for Form 1120-H are D, E, F, G, M, O, R, T, W, X, Y, 3, 7, and 8.
(3) Edit Computer Condition Codes in the dotted portion of Line 1.
Return Processing Code (RPC)
(1) Return Processing Code (RPC) is an alpha or numeric character used to alert the computer to a special condition or computation.
(2) RPCs are edited on Page 1, in the right margin next to Line 1 of Form 1120-H.
(3) Refer to the table below for an explanation of when to edit each RPC.
RPC | Explanation |
|---|---|
E | Form 8865, Schedule G, Statement of Application for the Gain Deferral Method Under Section 721(c), is attached. |
F | Form 8865, Schedule H, Acceleration Events and Exceptions Reporting Relating to Gain Deferral Method Under Section 721(c), is attached. |
J | For Tax Period 202201 - 202212, taxpayer writes IRA22 DPE on Form 3800,Form 1120-H, Line 23e or on an attachment.
|
K | For Tax Period 202201 - 202212, taxpayer writes IRA22TRE on Form 3800, an attachment or at the top of the return.
|
L | Form 7204, Consent to Extend the Time to Assess Tax Related to Contested Foreign Income Taxes - Provisional Foreign Tax Credit Agreement is attached. |
M | Form 7205, Energy Efficient Commercial Buildings Deduction is attached. |
4 | Form 8994, Employer Credit for Paid Family and Medical Leave, is attached. |
Additional Form 1120-H Perfection
(1) This subsection addresses the editing of additional Form 1120-H information. See IRM 3.11.16.10, Additional Return Perfection.
Audit Codes
(1) Valid codes are "2", "3," and C. No editing is necessary for codes 2 and "3."
(2) Audit Code "C" - Edit Audit Code "C" when Form 8283 is attached and:
Box 2b is checked, or
Box 2b1 is checked, or
Line 3, Column (h) has an entry.
Penalty and Interest Code
(1) Edit the Penalty and Interest Code in the left margin next to Line 12 of Form 1120-H.
(2) Edit as "3 -" followed by the Penalty and Interest Code.
(3) Enter code "1" when precomputed delinquency penalty and/or interest is shown on a return with a received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
(4) This code is valid only within the unextended ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ some other situation, such as an estimated Tax Penalty, do not code "1" and do not insert Condition Code "R." If only interest is shown, edit CCC "R."
Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Timeshare Association Indicator
(1) When a Timeshare Association files Form 1120-H and checks the Timeshare Association box, edit the Timeshare Association Indicator of "1" in the right margin of Line A, Page 1, Form 1120-H. See Figure 3.11.16-37. 
Gross Income Items - Lines 1 through 8
(1) Gross Income items can be positive or negative amounts.
(2) Line 1 - Dividends.
(3) Line 2 - Taxable interest.
(4) Line 3 - Gross rents.
(5) Line 4 - Gross royalties.
(6) Line 5 - Capital gain net income. If there is a significant entry and Schedule D (Form 1120) is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(7) Line 6 - Net gain or loss from Form 4797, Part II, line 17. If an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 4797 is not attached and the taxpayer has not attached Form 4684, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(8) Line 7 - Other Income:
If the only income is "Gross Income" on Line 8, double arrow the Line 8 amount to Line 7. Bracket if negative.
(9) Line 8 - Gross Income:
Compute Line 8 if blank and there are entries on Lines 1 through 7. Bracket if negative.
Deduction Items - Lines 9 through 17
(1) Deduction items can be positive or negative amounts.
(2) Line 9 - Salaries and wages.
(3) Line 10 - Repairs and maintenance.
(4) Line 11 - Rents.
(5) Line 12 - Taxes and licenses.
(6) Line 13 - Interest.
(7) Line 14 - Depreciation.
(8) Line 15 - Other Deductions:
If the only deduction is "Total Deductions" on Line 16, enter the Line 16 amount on Line 15. Bracket if negative.
(9) Line 16 - Total Deductions:
Compute Line 16 if blank and there are entries on Lines 9 through 15. Bracket if negative.
(10) If Line 17 is the only entry then:
Edit the Line 17 amount to Lines 7 and 8 if it is a positive amount.
Edit the Line 17 amount to Lines 15 and 16 if it is a negative amount. Bracket negative amount.
Tax and Payments - Lines 21 through 26
(1) Line 21 - Tax credits:
If | And | Then |
|---|---|---|
There is an entry for Foreign Tax Credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, | Form 1118 or similar statement is not attached, | Correspond. |
There is an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, | Form 3800 is missing, | Correspond. |
There is an entry for fuel produced from a non-conventional source ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, | The supporting statement is missing, | Correspond. |
(2) Line 22 - Total Tax:
If Line 22 is blank, compute and enter by subtracting Line 21 from Line 20.
If pre-computed interest or delinquency penalty or an additional charge is evident, ensure that it has not been included in Line 22.
"X" the Line 22 amount.
Delete the interest, penalty or additional charge from the total.
Edit the correct Total Tax to the left of the original entry.
Line 22 (Tax Period 202401 and later) - The taxpayer is instructed to report a Chapter 1 Recapture Credit from Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties, on the dotted portion of Line 22.
If | Then |
|---|---|
The amount on Line 22 has pre-computed interest or penalty or additional charge, |
If | Then |
|---|---|
An amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on the dotted portion of Line 22 and Form 4255 is not attached, | Correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
An amount is present on the dotted portion of Line 22 and Form 4255 is attached, | Underline the Line 22 amount. |
(3) Lines 23a - Preceding Year’s overpayment credited to the current year.
(4) Line 23b - Current year’s Estimated tax Payments.
(5) Line 23c - For 2022 and prior, if blank, add Lines 23a and 23b and enter on Line 23c.
(6) Line 23c (Line 23d for 2022 and prior) - Tax deposited with Form 7004.
(7) Line 23e (Tax Period 202201-202212) - If a significant amount is present and "IRA22 DPE" is notated, edit RPC "J."
(8) Line 23d (Line 23e for 2022 and prior) - Credit from Regulated Investment Companies.
If | Then |
|---|---|
Line 23d (Line 23e for 2022 and prior) has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 2439 is missing, | Correspond for missing Form 2439. |
Form 2439 shows a larger amount than Line 23d (Line 23e for 2022 and prior), Form 1120-H and Line 23d (Line 23e for 2022 and prior) is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, | Correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
Line 2, Form 2439 shows a lesser amount than Line 23d (Line 23e for 2022 and prior) Form 1120-H, | Edit the lesser amount to Line 23d (Line 23e for 2022 and prior), Form 1120-H. |
(9) Line 23e (Line 23f for 2022 and prior) - Credit for Federal tax on fuels (Form 4136).
If there is a significant entry on Line 23e (Line 23f for 2022 and prior) and Form 4136 is not present, correspond for the missing Form 4136. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
For Form 4136 processing instructions, see IRM 3.11.16.19, Form 4136 - Credit for Federal Tax Paid on Fuels.
(10) Line 23f - Elective Payment Election. Accept taxpayer entry.
(11) Line 23g - Add Lines 23a (23c for 2022 and prior) through 23f,
If | And | Then |
|---|---|---|
The taxpayer has claimed backup withholding ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Line 23g, | Form 1099 is not attached, | Correspond using Letter 118C. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
(12) Lines 24 and 25 - Tax due/Overpayment. Edit as positive only. If the taxpayer enters a negative amount, do not bracket. Edit the proper entry to Line 24 or 25 if both are blank:
If Line 22 is more than Line 23g, subtract Line 23g from Line 22 and enter on Line 24.
If Line 22 is less than Line 23g, subtract Line 22 from Line 23g and enter on Line 25.
(13) If pre-computed interest or delinquency penalty or additional charge is evident, ensure that it has not been included in Line 24 or reduced Line 25.
If | Then |
|---|---|
The amount on Line 24 has pre-computed interest or penalty or additional charge, |
|
The amount on Line 25 is reduced by pre-computed interest or penalty or additional charge, |
|
(14) Line 26 (center) - Credit elect.
Paid Preparer Information
(1) See IRM 3.11.16.11.8, Paid Preparer Checkbox Indicator, and IRM 3.11.16.11.9, Paid Preparer Section.
Form 4136 - Credit for Federal Tax Paid on Fuels
(1) For processing instructions, see IRM 3.11.16.19, Form 4136 - Credit for Federal Tax Paid on Fuels.
Form 8978 and Form 8978, Schedule A
(1) Form 8978 is valid for Tax Period ending 201712 and later.
(2) The "Source of review year adjustments" checkboxes on Form 8978, Partner’s Additional Reporting Year Tax and Form 8978, Schedule A, Partner’s Additional Reporting Year Tax (Schedule of Adjustments), are valid for Tax Period 202112 and later.
(3) Place Form 8978 in sequence order if any of the following apply:
The "Source of review year adjustments" checkboxes are checked on Form 8978.
The "Source of review year adjustments" checkboxes are checked on Form 8978Schedule A.
Significant entries are present on Form 8978, Part I, Line 14, Part II, Line 16, or Part III, Line 18.
Note: Any information from the checkboxes on Form 8978, Schedule A will be transcribed on Form 8978.
(4) Edit the digit to the right margin of Form 8978, Part I row as follows:
If | And | Then |
|---|---|---|
Only Form 8978 is attached, | One or more of the boxes are checked, | Edit:
|
Form 8978 and Form 8978, Schedule A, are attached, | The boxes are marked the same on both forms, | Use the Form 8978 data and edit as shown above. |
Form 8978 and Form 8978, Schedule A, are attached, | The boxes are marked differently, | Use the Form 8978, Schedule A, data and edit as shown above. |
Only Form 8978, Schedule A, is attached, |
| No editing is required. |
Note: No editing is required on Lines 14, 16 and 18.
(5) Part I, Line 14 - Total Increase/decrease to reporting year tax.
(6) Part II, Line 16 - Total Penalties.
(7) Part III, Line 18 - Total Interest.
Form 8941 - Credit for Small Employer Health Insurance Premiums
(1) Place Form 8941 in sequence order if significant entries are present.
(2) For prior year revisions edit as follows:
If | And | Then |
|---|---|---|
2013 and 2012 revisions, | A significant amount is present on Line 1a or an EIN is present on Line 1b, |
|
Form 3800 - General Business Credit
(1) Transcription for Form 3800 when attached to Form 1120-H is as follows:
Form 3800, Part III, Line | Credit Form | Form Title | Column(s) transcribed |
|---|---|---|---|
1b | Form 7207 | Advanced Manufacturing Production Credit | b, f, g, h, j |
1f | Form 8835, Part II | Renewable Electricity Production Credit | b, f, g |
1g | Form 7210, | Clean Hydrogen Production Credit | b, f, g, h, j |
1q | Form 7218, | Clean Fuel Production Credit | b, f, g, h, j |
1s | Form 8911, Part II | Alternative Fuel Vehicle Refueling Property Credit | b, f, g, h, j |
1u | Form 7213, Part II | Nuclear Power Production Credit | b, f, g, h, j |
1v Note: If a credit is claimed for Form 1120-H on Form 3800, Part III, Line 1v, Columns (b), (f), (g) or (h), then "X" the entry. This credit is not available for Form 1120-H. | Form 3468, Part V | Investment Credit | b, f, g, h, j |
1x | Form 8933 | Carbon Oxide Sequestration Credit | b, f, g, h, j |
1aa | Form 8936, Part V | Clean Vehicle Credits | b, h, g, j |
1gg | Form 7211 | Clean Electricity Production Credit | b, f, g, h, j |
4e | Form 8835, Part II | Renewable Electricity Production Credit | b, f, g, h, j |
(2) Place Form 3800 in sequence order if significant entries are present.
(3) See IRM 3.11.16.11.21, Line 5c - General Business Credit and Exhibit 3.11.16-19, Form 3800 - Prior Year Conversion Chart for more information.
(4) If an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on any line of Form 3800, Part III, Column (g) (Column (j) for 2023 and prior) correspond for the supporting credit form. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Exception: Tax Year 2023 - If Form 3800, Part III, Line 1b, 1f, 1g, 1s, 1u, 1x, 1aa, or 4e Column (d) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1b, 1f, 1g, 1q, 1s, 1u, 1x, 1aa, 1gg, or 4e Column (c) has an EIN, do not correspond and continue to process the return.
Form 4255 - Certain Credit Recapture, Excessive Payments, and Penalties
(1) Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties, is valid for Tax Period ending 202401 and later.
(2) Place Form 4255 in sequence order if the form is attached and significant entries are present in Part I, Columns (s) or (t). See IRM 3.11.16.36.1, Sequence - Form 1120-H.
(3) If the Tax Period is 202312 and prior, do not sequence the Form 4255.
(4) The following lines will be transcribed on Form 4255.
Form 4255, Part I | Credit From | Column |
|---|---|---|
Line 1a | Form 7207 | (s) |
Line 1a | Form 7207 | (t) |
Line 1b | Form 3468, Part III | (s) |
Line 1b | Form 3468, Part III | (t) |
Line 1c | Form 7210 | (s) |
Line 1c | Form 7210 | (t) |
Line 1d | Form 3468, Part IV | (s) |
Line 1d | Form 3468, Part IV | (t) |
Line 1e Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7218 | (s) |
Line 1e Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7218 | (t) |
Line 1f Caution: If the Tax Period is 202312 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7213, Part II | (s) |
Line 1f Caution: If the Tax Period is 202312 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7213, Part II | (t) |
Line 1g Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 3468, Part V | (s) |
Line 1g Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 3468, Part V | (t) |
Line 1h | Form 8936, Part V | (s) |
Line 1h | Form 8936, Part V | (t) |
Line 1i Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7211 | (s) |
Line 1i Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7211 | (t) |
Line 1j | Form 3468, Part VI | (s) |
Line 1j | Form 3468, Part VI | (t) |
Line 1k | Form 8835 | (s) |
Line 1k | Form 8835 | (t) |
Line 2a | Form 8933 | (s) |
Line 2a | Form 8933 | (t) |
Line 2b | Form 8911, Part I | (s) |
Line 2b | Form 8911, Part I | (t) |
(5) If there is an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Form 1120-H, Line 22 Write-in, correspond for a Form 4255 if missing. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Amended Returns
(1) If the taxpayer is amending a previously filed Form 1120-H, enter CCC "G" and treat as any other amended return. See IRM 3.11.16.3.9, Amended Returns.
(2) If the taxpayer is using a Form 1120-H to amend a previously filed Form 1120, staple Page 1 of a current year Form 1120 to the face of the Form 1120-H. Transfer to the overlay the name, address, EIN, name control, Tax Period, received date, and CCC "G." Write "Amended Return" in large letters across the top of the overlay.
(3) If the taxpayer is using a Form 1120-H to amend a previously filed Form 990, accept Form 1120-H as an original Form 1120-H and process as such.
(4) If it cannot be determined what type of return is being amended, enter CCC "G" on the return.
Return Processing - Form 1120-L (OSPC only)
(1) This subsection provides instructions for processing Form 1120-L, U.S. Life Insurance Company Income Tax Return.
(2) Form 1120-L is processed only at the Ogden Campus.
(3) Form 1120-L filers can be included as subsidiaries on a consolidated return. See IRM 3.11.16.29, Consolidated Returns.
(4) Form 1120-L can be filed on a calendar or fiscal year basis.
(5) Action Codes apply to Form 1120-L. See IRM 3.11.16.3.1, Action Codes.
(6) To convert prior year tax returns. See Exhibit 3.11.16-13, Form 1120-L - Prior Year Conversion Chart.
Sequence - Form 1120-L
(1) Document Perfection is responsible for arranging Form 1120-L in the following order when transcription line entries are present:
Pages 1 through 6
Schedule N (Form 1120)
Form 4626 (Tax periods 202301 and later (2023 Revision and later))
Form 4136
Form 8978
Form 965-B
Form 8941
Form 3800
Form 4255 (Tax period 2024 and later)
(2) It is not necessary to sequence the forms or schedules listed above if there are no transcription line entries.
(3) It is not necessary to sequence an Amended return. See IRM 3.11.16.3.9, Amended Returns, for more information.”
EIN
(1) See IRM 3.11.16.6.2, Entity Perfection - Employer Identification Number (EIN).
Name Control and Address
(1) See IRM 3.11.16.6.3, Entity Perfection - Name Control, through IRM 3.11.16.6.6, Entity Perfection - Foreign Address (OSPC).
Tax Period
(1) Edit Tax Period ending (except current calendar year) in YYMM format in the top right margin of the form, above the title. See IRM 3.11.16.7.1, Tax Period - Ending.
(2) Edit the Tax Period Beginning to the left of Form 1120-L title area in MMDDYY format on an Initial, Final or Short Period return. See IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
(3) See IRM 3.11.16.7.3, Early Filed Returns - Full Year and Short Period through IRM 3.11.16.7.9, Short Period Returns - With Prepaid Credits, for editing Short Period returns.
Received Date
(1) Edit the received date in MMDDYY format in the dotted portion of Lines 10 and 11. See IRM 3.11.16.8, Received Date.
Computer Condition Codes
(1) Edit in the dotted portion of Line 3.
(2) Codes valid for Form 1120-L are B, D, E, F, G, I, J, L, M, N, O, R, S, T, W, X, Y, Z, 3, 5, 6, 7, and 8. See IRM 3.11.16.9.1, Computer Condition Codes.
Return Processing Code (RPC)
(1) Return Processing Code (RPC) is an alpha or numeric character used to alert the computer to a special condition or computation.
(2) RPCs are edited on Page 1, in the right margin next to Line 1 of Form 1120-L.
(3) Refer to the table below for an explanation of when to edit each RPC.
RPC | Explanation |
|---|---|
E | Form 8865, Schedule G, Statement of Application for the Gain Deferral Method Under Section 721(c), is attached. |
F | Form 8865, Schedule H, Acceleration Events and Exceptions Reporting Relating to Gain Deferral Method Under Section 721(c), is attached. |
G | Form 5471, Schedule G-1, Cost Sharing Arrangement is attached. |
J | For Tax Period 202201 - 202212, taxpayer writes IRA22 DPE on Form 3800,Form 1120-L, Line 28g or on an attachment.
|
K | For Tax Period 202201 - 202212, taxpayer writes IRA22TRE on Form 3800, on an attachment or at the top of the return.
|
L | Form 7204, Consent to Extend the Time to Assess Tax Related to Contested Foreign Income Taxes - Provisional Foreign Tax Credit Agreement is attached. |
M | Form 7205, Energy Efficient Commercial Buildings Deduction is attached |
N | Form 4626, Alternative Minimum Tax (2023 Revision and later) is attached or Form 1120-L, Schedule K, Line 3 shows a significant amount. |
1 | Form 8991, Tax on Base Erosion Payments of Taxpayers with Substantial Gross Receipts, is attached. |
2 | Form 8992, U.S Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI), is attached. |
3 | Form 8993, Section 250 Deduction for Foreign-Derived Intangible Income (FDII)and Global Intangible Low-Taxed Income (GILTI), is attached. |
4 | Form 8994, Employer Credit for Paid Family and Medical Leave, is attached. |
6 | Form 8996, Qualified Opportunity Fund, is attached. |
7 | Form 8990, Limitation on Business Interest Expense IRC 163(j), is attached. |
ABLM Code
(1) The ABLM Code is computer generated for Form 1120-L. No editing is required.
Schedule M-3 Checkbox
(1) Edit Computer Condition Code "B" when Box A3, "Schedule M-3 (Form 1120-L) attached" is marked or Schedule M-3 is attached to Form 1120-L.
(2) Do not correspond for Schedule M-3 if Box A3 is checked and Schedule M-3 is not attached.
Consolidated Returns
(1) Form 1120-L filers can file a Consolidated return. A Consolidated 1120-L filer is found by checking Box A(1) on Page 1 of Form 1120-L.
(2) A consolidated return is defined as a single income tax return having combined financial data for a parent corporation and one or more subsidiary or affiliated corporations.
(3) The parent corporation files the return, and its name, which appears on the return, including the words, "and subsidiaries," "and affiliated companies" or similar notation.
(4) The parent corporation must submit along with the Form 1120-L a Form 851 on an annual basis. Correspond for missing or incomplete Form 851.
(5) Form 851 must be processed per the instructions in IRM 3.11.16.29.3, Form 851 - Affiliations Schedule.
(6) The presence of Form 1122 is another indication of a consolidated return. See IRM 3.11.16.29.4, Form 1122 - Authorization and Consent of Subsidiary Corporation to be Included in a Consolidated Income Tax Return.
Additional Form 1120-L Perfection
(1) This subsection addresses the editing of additional Form 1120-L information. See IRM 3.11.16.10, Additional Return Perfection.
Form 8844 Indicator
(1) Edit "1 - 1" in the left margin of Form 1120-L near Line 12.
See IRM 3.11.16.11.21.1, Form 8844, Empowerment Zone Employment Credit.
Audit Codes
(1) Edit a "2" followed by the right Audit Code(s) in the left margin near Line 12 (e.g., "2-1").
(2) Valid Audit codes are 1, 2, 3, and C. See IRM 3.11.16.10.1, Audit Codes.
Penalty and Interest Code
(1) Edit "4 - 1" in the left margin near Line 12 when precomputed delinquency penalty and/or interest is shown on a return with a received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
(2) This code is valid only within the unextended ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ some other situation, such as an estimated Tax Penalty, do not Code "4 - 1" and do not insert Condition Code "R." If only interest is shown, edit CCC "R."
Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Income Section
(1) Line 5 - Capital gain net income. If there is a significant entry and Schedule D (Form 1120), is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Line 25 - Total Taxable Income
(1) Edit in dollars only.
(2) If Line 25 (Line 27 for 2017 and prior) is blank, and there are entries on Lines 23 and 24, (Lines 25 and 26 for 2017 and prior) add the entries on Lines 23 and 24 (Lines 24, 25, and 26 for 2017 and prior) and enter the total on Line 25 (Line 27 for 2017 and prior). Bracket if negative.
Tax and Payments
(1) This subsection provides editing instructions for Lines 26 through 32 (Lines 28 through 33 for 2017 and prior).
(2) Line 26 (Line 28 for 2017 and prior) - Total tax. If pre-computed interest or delinquency penalty or an additional charge is evident, ensure that it has not been included in Line 26.
If | Then |
|---|---|
The amount on Line 26 (Line 28 for 2017 and prior) has pre-computed interest or penalty or additional charge, |
|
(3) Line 27a - Preceding Year’s Overpayment Credited to the Current Year. Accept taxpayer’s entry.
(4) Line 27b - Current Year’s Estimated Tax Payments. Accept taxpayer’s entry.
(5) Line 27c - Refund applied from Form 4466. If there is a significant entry, enter CCC "O." See IRM 3.11.16.9.1.15, CCC "O" - Module Freeze.
(Line 28d for 2022 -2018) (Line 29e for 2017 and prior)
(6) Line 27d - Total of payments (2023 revision). If blank, compute and enter total of Lines 27a, 27b minus 27c.
(28e for 2022 - 2018) (Line 29f for 2017 and prior)
(Add Lines 28a, 28b, and 28c minus 28d for 2022 - 2018) (Add Lines 29a, 29b, and 29c minus 29e for 2017 and prior).
(7) Line 27d (2024 revision) - Tax deposited with Form 7004.
(Line 27e for 2023)
(Line 28f for 2022-2018) (Line 29g for 2017 and prior)
(8) Line 27e - Credit for Tax Paid on Undistributed Capital Gains.
(Line 27f for 2023)
(Line 28g(1) for 2022 - 2018)
(Line 29h(1) for 2017 and prior)
If | Then |
|---|---|
The Undistributed Capital Gain Credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 2439 is missing, | Correspond. |
(9) Line 27f - Credit for Federal Tax on Fuels (Form 4136).
(Line 27g for 2023)
(Line 28g(2) for 2022 - 2018)(Line 29h for 2017 and prior).
If there is a significant entry on Line 27f and Form 4136 is not present, correspond for the missing Form 4136. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
For Form 4136 processing instructions, see IRM 3.11.16.19, Form 4136 - Credit for Federal Tax Paid on Fuels.
(10) Line 27g - U.S. Income Tax Paid or Withheld at Source (Form 1042-S).
(Line 27h for 2023)
(Line 28h for 2022 - 2018) (Line 29i for 2017-2006)
If | And | Then |
|---|---|---|
The taxpayer has claimed Chapter 3 or 4 withholding ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Line 27g (Line 28h for 2022 - 2018) (Line 29i for 2017 and prior), | Form 1042-S is not attached, | Correspond using Letter 118C. Exception: If a letter is attached, signed by the Competent Authority, accept the letter as proof of Form 1042-S withholding and do not correspond for the missing Form 1042-S. |
The taxpayer has claimed backup withholding ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Form 1099 is not attached, | Correspond using Letter 118C. |
(11) Line 27h - Elective Payment Election. Accept taxpayer’s entry.
(Line 27i for 2023)
(12) Line 27z - Other Credits and Payments. Accept taxpayer’s entry
(13) Line 29 (Line 30 for 2017 and prior) - Estimated tax penalty. If Form 1120-L, Line 29 (Line 30 for 2017 and prior) is blank, and Form 2220 is attached with a significant entry on Page 2, Line 38, then edit the amount from Form 2220 , Page 2, Line 38, to Form 1120-L, Line 29 (Line 30 for 2017 and prior). See IRM 3.11.16.11.6.6, Line 34 - Estimated Tax Penalty.
(14) Lines 30 and 31 (Lines 31 and 32 for 2017 and prior) - Amount owed/Overpayment. Edit as positive only. If the taxpayer enters a negative amount, do not bracket. Edit the proper entry to Line 30 or 31 (Lines 31 and 32 for 2017 and prior) if both are blank. Do both of the following:
For 202301 and later, Add Lines 26 and 29 minus Line 28.
For 2022 - 2018, Add Lines 26, 27 and 29 minus Line 28k.
For 2017 and prior, Add Lines 28 and 30 minus Line 29k.
Edit the positive result on Line 30 (Line 31 for 2017 and prior) or the negative result (do not bracket) on Line 31 (Line 32 for 2017 and prior).
(15) If pre-computed interest or delinquency penalty or additional charge is evident, ensure that it has not been included in Line 30 (Line 31 for 2017 and prior) or reduced Line 31 (Line 32 for 2017 and prior).
If | Then |
|---|---|
The amount on Line 30 (Line 31 for 2017 and prior) has pre-computed interest or penalty or additional charge, |
|
The amount on Line 31 (Line 32 for 2017 and prior) is reduced by pre-computed interest or penalty or additional charge, |
|
(16) Line 32 (center) (Line 33 (center) for 2017 and prior) - Credit to estimated tax.
Tax and Payment - Prior Year Line Instructions
(1) Line 27 - For Tax Period 201712 through 202012, follow the instructions in a) and b).
If blank enter amount from Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, as follows:
Edit CCC "J" and Action Code "460."
Reporting Tax Year | Form 965-B |
|---|---|
2017 | Part II, Column (k), Line 1 |
2018 | Part II, Column (k), Line 2 |
2019 | Part II, Column (k), Line 3 |
2020 | Part II, Column (k), Line 4 |
(2) Line 28b - The instructions for this line only apply to Tax Period 201812 and prior. For Tax Period 201901 and later, no action is needed. If a return is for Tax Period 201812 and prior and the taxpayer notates "Section 847" or reports SETP on Line 28b (Lines 29b and/or 29d for 2017 and prior) or Form 8816 is attached, see IRM 3.11.16.3.10, IRC 847 Deduction.
(3) Line 28g (Tax Period 202301-202311) - If a significant amount is present for an "Elective or Deemed Payment Election", edit RPC "J."
(4) Line 28i - For Tax Period 201712 through 202012, follow the instructions in a) and b).
If blank enter amount from Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, as follows:
Edit CCC "J" and Action Code "460."
Reporting Tax Year | Form 965-B |
|---|---|
2017 | Part II, Column (d), Line 1 |
2018 | Part II, Column (d), Line 2 |
2019 | Part II, Column (d), Line 3 |
2020 | Part II, Column (d), Line 4 |
(5) Line 28j - Reserved for future use.
Line 28j - Refundable credits from Form 8827 - Revisions 2019 and prior (Line 29j for 2017 and prior):
If | Then |
|---|---|
The amount on Line 28j (Line 29j for 2017 and prior) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8827 is not attached, | Correspond for Form 8827. |
Paid Preparer Information
(1) See IRM 3.11.16.11.8, Paid Preparer Checkbox Indicator, and IRM 3.11.16.11.9, Paid Preparer Section.
Schedule B
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Schedule B, Line 6 - Capital gain net income. If there is a significant entry and Schedule D (Form 1120) is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Schedule F, Line 9c - Total Tax Exempt Interest and Increase in Policy Cash Value
(1) Line 9c - No editing necessary.
(2) The instructions in paragraphs (3) and (4) only apply to Tax Period 201811 and prior.
(3) Line 9 - Gross investment income.
If | Then |
|---|---|
The amount on Page 2, Schedule B, Line 13 is not the same as the amount present on Schedule F, Line 9, | "X" Schedule F, Line 9 and edit the amount from Schedule B, Line 13, to Schedule F, Line 9. |
(4) Line 13 - Tax-exempt interest.
If | Then |
|---|---|
The sum of Page 2, Schedule B, Lines 9 and 10 is not the same as the amount present on Schedule F, Line 13, | "X" Schedule F, Line 13 and edit the sum from Schedule B, Lines 9 and 10 to Schedule F, Line 13. |
Schedule K, Lines 1a - 2, Income Taxes
(1) Schedule K was redesigned for the 2024 form revision and now has lines for several different income tax types:
Line 1a - Income Tax
Line 1b - Section 1291 Tax from Form 8621.
Line 1c - Tax Adjustment from Form 8978.
Line 1d - Additional Tax Under Section 197(f).
Line 1e - Base Erosion Minimum Tax from Form 8991.
(Line 2 for 2023 and prior)Line 1f - Amount from Form 4255, Part I, Line 3 Column (q) - If Form 1120-L, Schedule K, Line 1f has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 4255 is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Line 1z - Other Chapter 1 Taxes.
Line 2 - Total Income Tax.
Schedule K, Line 3 - Corporate Alternative Minimum Tax (CAMT) (202301 and later)
(1) Corporate Alternative Minimum Tax (CAMT) is claimed on Schedule K, Line 3.
(2) If there is a significant amount on Schedule K, Line 3 for "Corporate Alternative Minimum Tax" and Form 4626 is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Schedule K, Line 3 - Tax Preference Code (201811 and prior)
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Tax Preference Code - Edit a "1" to the bottom center margin of Form 1120-L, if there is an amount on Schedule K, Line 3, Form 1120-L.
(3) If there is an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Schedule K, Line 3 for "Alternative Minimum Tax" and Form 4626 is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Schedule K, Lines 5a through 9
(1) Line 5a - If Schedule K, Line 5a, has an entry, check for Form 1118, Foreign Tax Credit.
If | Then |
|---|---|
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 1118 is missing, | Correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
There is an entry on Line 5a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Edit Audit Code "2." |
(2) Line 5b - Form 8834 Qualified Electric Vehicle Credit. ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8834 is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(3) Line 5c - General Business Credit.
If an amount is present or Form 3800 is attached, follow the instructions in IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit.
(4) Line 5d - Form 8827, Credit for Prior Year Minimum Tax - Corporations.
(5) Line 5e - Bonds credits from Form 8912. If the entry on Line 5e is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the Form 8912 is missing, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(6) Line 5f - Adjustment from Form 8978. Accept taxpayer’s entry.
(7) Line 8a - Foreign Corporations - Tax on Income not effectively connected with U.S Business. Accept taxpayer’s entry.
(Line 8 for 2023)
(8) Lines 8b and 8c - Other Taxes.
If | Then |
|---|---|
The entry on Line 8a (Line 9 for 2023) is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 4255 is missing, | Correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
The entry on Line 8c (Line 10 for 2023) is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8611 is missing, | Correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
Reminder: Look for any Unusual Credits, see IRM 3.11.16.9.1.14, CCC "N" - Joint Committee Case, and IRM 3.11.16.10.1, Audit Codes.
(9) Line 8z - Other taxes. Accept taxpayer’s entry.
(10) Line 9 - Other Taxes - For Tax Period 202201 - 202211, If a significant amount is present on Line 9 and the taxpayer writes "CAMT" or "IRA AMT" or indicates the amount is for Corporate AMT, completely edit the return and give to the lead. The lead will:
Notify P&A that a return has been found (P&A will scan the Form 1120-L, pages 1 through 5 and any attachment with the new AMT calculation and email a copy to an LB&I Point of Contact (POC)),
Edit an action trail on the return.
Rebatch the return with "CAMT" in the batch ID.
Continue processing.
(11) Lines 10a through 10c - Total Tax before Deferred Taxes and Deferred Taxes.
Line 10a - Total Tax before Deferred Taxes. This total is derived by adding the sum of Lines 7 and 9.
Line 10b - Deferred Tax on the Corporation’s share of Undistributed Earnings of a Qualified Electing Fund. Accept taxpayer’s entry.
Line 10c - Other Deferred Tax. Accept taxpayer’s entry.
Schedule L, Part I, Line 5 - Total Assets Ending
(1) Edit the amount from Schedule L, Part I, Line 5 Column (b) (Line 6 Column (b) for 2017 and prior), in dollars only to the bottom right hand corner of Page 1. Bracket if negative.
If Line 5, Column (b) is blank, compute Lines 1 through 4 if present and edit on Page 1.
Schedule M, Question 6, 8 and 8c
(1) If Schedule M, Question 6 meets one of the following conditions, a Name Control and EIN must be edited:
If | Then |
|---|---|
|
|
Question 6 is checked "No" or neither box is checked and no corporation's name and EIN is present, | No editing is required. |
Question 6 is checked "No" or neither box is checked and the corporation's name and/or EIN are the same as the return name and/or EIN, | No editing is required. |
(2) If Schedule M, Question 8 is answered "Yes," edit Audit Code "2."
(3) No entry is required for Schedule M, Line 8c unless Form 5472 is present. Edit Line 8c as follows:
If | And | Then |
|---|---|---|
A number is present for Schedule M, Line 8c, |
| No editing is required. |
Schedule M, Line 8c is blank, | One or more Form 5472 is attached, | Edit the number of Form 5472(s) in the dotted line area of Line 8c. |
Form 5472 is attached, | Schedule M is not present, | Dummy a Schedule M and edit the number of Form 5472(s) to Schedule M, Line 8c. |
Schedule M, Question 19a, 19b, and 19c (Corporate AMT)
(1) If Question 19b is marked "Yes" or Question 19c is marked "No", Form 4626 must be attached. Correspond if Form 4626 is not attached.
(2) Data will enter:
"0" if no box is checked.
"1" if "Yes" box checked.
"2" if "No" box checked.
"3" if "Both" boxes checked.
Form 4626 - Corporate Alternative Minimum Tax (CAMT) (Tax Period 202301 and later)
(1) The instructions in this subsection apply to Tax Period 202301 and later.
(2) Place Form 4626 in sequence order if significant entries are present on any of the lines:
Question A is checked
Question B is checked
Part I, Line 1a, Column a
Part I, Line 1a, Column b
Part I, Line 1a, Column c
Part I, Line 1f, Column a
Part I, Line 1f, Column b
Part I, Line 1f, Column c
Part I, Line 5, Column a
Part I, Line 5, Column b
Part I, Line 5, Column c
Part I, Line 13, Column a
Part I, Line 13, Column b
Part I, Line 13, Column c
Part I, Line 15
Part II, Line 1a
Part II, Line 1f
Part II, Line 4
Part II, Line 5
Part II, Line 8
Part II, Line 9
Part II, Line 13
(3) Edit RPC "N" if Form 4626 (2023 revision and later) is attached. See IRM 3.11.16.37.7, Return Processing Code.
Schedule N (Form 1120) - Foreign Operations of U.S. Corporations
(1) For processing instructions, see IRM 3.11.16.11.47, Schedule N (Form 1120) - Foreign Operations of U.S. Corporations.
Form 4136 - Credit for Federal Tax Paid on Fuels
(1) For processing instructions, see IRM 3.11.16.19, Form 4136 - Credit for Federal Tax Paid on Fuels.
Form 8978 and Form 8978, Schedule A
(1) Form 8978 is valid for Tax Period ending 201712 and later.
(2) The "Source of review year adjustments" checkboxes on Form 8978, Partner’s Additional Reporting Year Tax and Form 8978, Schedule A, Partner’s Additional Reporting Year Tax (Schedule of Adjustments), are valid for Tax Period 202112 and later.
(3) Place Form 8978 in sequence order if any of the following apply:
The "Source of review year adjustments" checkboxes are checked on Form 8978.
The "Source of review year adjustments" checkboxes are checked on Form 8978, Schedule A.
Significant entries are present on Form 8978, Part I, Line 14, Part II, Line 16, or Part III, Line 18.
Note: Any information from the checkboxes on Form 8978, Schedule A will be transcribed on Form 8978.
(4) Edit the digit to the right margin of Form 8978, Part I row as follows:
If | And | Then |
|---|---|---|
Only Form 8978 is attached, | One or more of the boxes are checked, | Edit:
|
Form 8978 and Form 8978, Schedule A, are attached, | The boxes are marked the same on both forms, | Use the Form 8978 data and edit as shown above. |
Form 8978 and Form 8978, Schedule A are attached, | The boxes are marked differently, | Use the Form 8978, Schedule A, data and edit as shown above. |
Only Form 8978, Schedule A is attached, |
| No editing is required. |
Note: No editing is required on Lines 14, 16 and 18.
(5) Part I, Line 14 - Total Increase/decrease to reporting year tax.
(6) Part II, Line 16 - Total Penalties.
(7) Part III, Line 18 - Total Interest.
Form 965-B - Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts
(1) Form 965-B is valid for Tax Period ending 201712 and later.
(2) Place Form 965-B in sequence order if a significant amount (other than the pre-printed date) is present on any of the following lines:
Part I, Lines 1 through 5, col (a), Year of Section 965(a) Inclusion or Liability Assumed.
Part I, Lines 1 through 5, col (h), Net 965 Tax Liability Transferred (Out) Transferred (In), or Subsequent Adjustments, if any.
Part I, Lines 1 through 5, col (i), Tax Identification Number of buyer/transferee or Seller/transferor.
(3) Edit "1" in the right margin of Part I if more than five lines of entries are present.
Form 8941 - Credit for Small Employer Health Insurance Premiums
(1) Place Form 8941 in sequence order if significant entries are present.
(2) For prior year revisions edit as follows:
If | And | Then |
|---|---|---|
2013 and 2012 revisions, | a significant amount is present on Line 1a or an EIN is present on Line 1b, |
|
Form 5884-B - New Hire Retention Credit
(1) Form 5884-B, New Hire Retention Credit is historical (2010 through 2011).
Form 3800 - General Business Credit
(1) Form 3800, General Business Credit, must be filed with corporate tax returns when a significant amount is present on Schedule K, Line 5c - General Business Credit.
(2) Place Form 3800 in sequence order if significant entries are present.
(3) If an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on any line of Form 3800 , Part III Column (g) (Column (j) for 2023 and prior) correspond for the supporting credit form. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1a, 1b, 1c, 1e, 1f, 1h, 1i, 1j, 1k, 1l, 1m, 1n, 1p, 1s, 1t, 1w, 1x, 1y, 1aa, 1bb, 1zz, 3, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (b) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2023 - If Form 3800, Part III, Line 1b, 1c, 1e, 1f, 1g, 1h, 1i, 1j, 1k, 1m, 1n, 1p, 1s, 1t, 1u, 1w, 1x, 1y, 1aa, 1bb, 1cc, 1dd, 1ee, 1ff, 1zz, 3, 4a, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (d) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1b, 1c, 1e, 1f, 1g, 1h, 1i, 1j, 1k, 1m, 1n, 1p, 1q, 1s, 1t, 1u, 1v, 1w, 1x, 1y, 1aa, 1bb, 1cc, 1dd, 1ee, 1ff, 1gg, 1zz, 3, 4a, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (c) has an EIN, do not correspond and continue to process the return.
(4) See IRM 3.11.16.11.21, Line 5c - General Business Credit and Exhibit 3.11.16-19, Form 3800 - Prior Year Conversion Chart.
Form 4255- Certain Credit Recapture, Excessive Payments, and Penalties
(1) Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties, is valid for Tax Period ending 202401 and later.
(2) Place Form 4255 in sequence order if the form is attached and significant entries are present in Part I, Columns (s) or (t). See IRM 3.11.16.37.1, Sequence - Form 1120-L.
(3) If the Tax Period is 202312 and prior, do not sequence the Form 4255.
(4) The following lines will be transcribed on Form 4255.
Form 4255, Part I | Credit From | Column |
|---|---|---|
Line 1a | Form 7207 | (s) |
Line 1a | Form 7207 | (t) |
Line 1b | Form 3468, Part III | (s) |
Line 1b | Form 3468, Part III | (t) |
Line 1c | Form 7210 | (s) |
Line 1c | Form 7210 | (t) |
Line 1d | Form 3468, Part IV | (s) |
Line 1d | Form 3468, Part IV | (t) |
Line 1e Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7218 | (s) |
Line 1e Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7218 | (t) |
Line 1f Caution: If the Tax Period is 202312 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7213, Part II | (s) |
Line 1f Caution: If the Tax Period is 202312 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7213, Part II | (t) |
Line 1g Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 3468, Part V | (s) |
Line 1g Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 3468, Part V | (t) |
Line 1h | Form 8936, Part V | (s) |
Line 1h | Form 8936, Part V | (t) |
Line 1i Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7211 | (s) |
Line 1i Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7211 | (t) |
Line 1j | Form 3468, Part VI | (s) |
Line 1j | Form 3468, Part VI | (t) |
Line 1k | Form 8835 | (s) |
Line 1k | Form 8835 | (t) |
Line 2a | Form 8933 | (s) |
Line 2a | Form 8933 | (t) |
Line 2b | Form 8911, Part I | (s) |
Line 2b | Form 8911, Part I | (t) |
(5) If there is an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Form 1120-L, Schedule K, Line 1f, then correspond for a Form 4255 if missing. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Annual Statement - Form 1120-L
(1) Life insurance companies must include a copy of their annual statement with Form 1120-L. The annual statement must be in the format approved by the National Association of Insurance Commissioners (NAIC). The following reports/statements are not acceptable:
Annual Reports
Financial Statements
Financial Reports
Note: The above list is not all inclusive.
(2) Verify that annual statements for life insurance companies are attached to return.
(3) If attached, continue normal processing of return.
(4) If an annual statement is not attached, use the following chart to determine if it is required:
If | Then |
|---|---|
The taxpayer indicates that the State does not require the firm to file an annual statement and a pro-forma annual statement is not attached, | Correspond for a pro-forma annual Statement using Letter 118C, Corporate Return Incomplete for Processing: Form 1120, Form 1120 Series, Form 1120-S. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
| Do not correspond for the missing annual statement. |
A re-entry mixed component return was originally filed electronically, | Do not correspond for the missing annual statement. |
(5) If an annual statement is required and is missing, prepare an approved Correspondence Action Sheet requesting correspondence for the missing annual statement. IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(6) Annotate in upper left margin of return, "Annual Statement Requested on ____," filling in the blank with the date correspondence was initiated.
(7) Photocopy Page 1 of Form 1120-L.
(8) Attach the photocopy of Page 1, Form 1120-L to the Correspondence Action Sheet and send to Correspondence.
(9) Continue normal processing of the Form 1120-L return. Return is not to be rejected or suspended for any correspondence regarding missing annual statements.
Return Processing - Form 1120-ND (OSPC only)
(1) This subsection provides instructions for processing Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons.
(2) Form 1120-ND returns can be filed on a calendar or fiscal year.
(3) Action Codes are not applicable to this form. Computer Condition Code "U" will continue to be used.
Sequence - Form 1120-ND
(1) Document Perfection is responsible for arranging Form 1120-ND in the following order when transcription line entries are present:
Pages 1, 2
EIN
(1) See IRM 3.11.16.6.2, Entity Perfection - Employer Identification Number (EIN).
Name Control
(1) The Name Control is obtained from the "Name of Fund" line, see IRM 3.11.16.6.3, Entity Perfection - Name Control.
(2) The "Name of Trustee" will be established as the second name line on the Entity Module. To achieve this: Input TC "016" on all Form 1120-ND returns if a name is present on the "Name of trustee or disqualified person" line.
(3) Notate "TC 016" in the upper left margin of the return. See Figure 3.11.16-38. 
"In-Care-Of" Name
(1) See IRM 3.11.16.6.4, Entity Perfection - "In-Care-Of" Name.
Address
(1) Always underline complete address of filer including city, state and ZIP.
Tax Period
(1) Edit Tax Period ending (except current calendar year) in YYMM format to the right of the title on Page 1 of the return, see IRM 3.11.16.7.1, Tax Period - Ending.
(2) Edit the Tax Period Beginning to the left of Form 1120-ND title area in MMDDYY format on an Initial, Final or Short Period return. See IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
(3) See IRM 3.11.16.7.3, Early Filed Returns - Full Year and Short Period, through IRM 3.11.16.7.9, Short Period Returns - With Prepaid Credits, for editing Short Period returns.
Received Date
(1) Enter in MMDDYY format.
(2) Edit the received date in the dotted portion of Lines 5 through 11, see IRM 3.11.16.8, Received Date.
Computer Condition Codes
(1) Valid Codes for Form 1120-ND are C, D, E, F, G, M, O, R, T, U, W, X, Y, 1, 3, 7, and 8. See IRM 3.11.16.9.1, Computer Condition Codes.
(2) Edit in the dotted portion of Lines 1 through 4.
Additional Form 1120-ND Perfection
(1) This subsection addresses the editing of additional Form 1120-ND information. See IRM 3.11.16.10, Additional Return Perfection.
Audit Codes
(1) Audit Code "3" must be present on all Form 1120-ND returns and is the only valid code.
(2) Edit "2 - 3" in the left margin near the deduction section (Lines 5 through 11).
Penalty and Interest Code
(1) Edit "4 - 1" in the left margin near the Deduction section (Lines 5 through 11) when precomputed delinquency penalty and/or interest is shown on a return with a received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
(2) This code is valid only within the unextended ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ some other situation, such as an estimated Tax Penalty, do not Code "4 - 1" and do not insert Computer Condition Code "R." If only interest is shown, edit CCC "R."
Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Total Assets Ending
(1) Edit Total Assets in dollars only to the bottom right margin of Page 1, Form 1120-ND from Page 2, Schedule L, Line 6 (End of Year). Bracket if negative.
If Line 6 (End of Year) is blank, compute Lines 1 through 5 if present and edit on Page 1.
Tax Data Perfection - Page 1
(1) Line 2 - Capital gain net income. If there is a significant entry and Schedule D (Form 1120) is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(2) Line 12 - Modified Gross Income:
If blank, compute by subtracting Line 11 from Line 10. Do not edit zero. Bracket, if negative.
(3) Line 13 - Total Tax. If pre-computed interest or delinquency penalty or an additional charge is evident, ensure that it has not been included in Line 13.
If | Then |
|---|---|
The amount on Line 13 has pre-computed interest or penalty or additional charge, |
|
(4) Line 14c - If there is a significant entry on Line 14c, refer to CCC "O" procedures. See IRM 3.11.16.9.1.15, CCC "O" - Module Freeze.
(5) Line 14d - Estimated Tax Payments. If blank, enter the total of Lines 14a and 14b minus Line 14c.
(6) Line 14e - Form 7004 Credit.
(7) Line 14f - Total Payments. Add Lines 14d through 14e,
If | And | Then |
|---|---|---|
The taxpayer has claimed backup withholding ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Line 14f, | Form 1099 is not attached, | Correspond using Letter 118C. |
(8) Line 15 - Estimated Tax Penalty. If Form 1120-ND, Line 15 is blank and Form 2220 is attached with a significant entry on Page 2, Line 38, then edit the amount from Form 2220 , Page 2, Line 38 to Form 1120-ND, Line 15. See IRM 3.11.16.11.6.6, Line 34 - Estimated Tax Penalty.
(9) Line 16 and 17 - Tax due/Overpayment. Edit as positive only. If the taxpayer enters a negative amount, do not bracket. Edit the proper entry to Line 16 or 17 if both are blank. Do both of the following:
Add Lines 13 and 15. Subtract Line 14f.
Edit the positive result on Line 16 or the negative result (do not bracket) on Line 17.
(10) If pre-computed interest or delinquency penalty or additional charge is evident, ensure that it has not been included in Line 16 or reduced Line 17.
If | Then |
|---|---|
The amount on Line 16 has pre-computed interest or penalty or additional charge, |
|
The amount on Line 17 is reduced pre-computed interest or penalty or additional charge, |
|
(11) Line 18 (center) - Credit to next year tax.
Paid Preparer Information
(1) See IRM 3.11.16.11.8, Paid Preparer Checkbox Indicator, and IRM 3.11.16.11.9, Paid Preparer Section.
Special Return Conditions
(1) If there are significant (other than zero) entries on Page 1, Part I and Page 2, Part II, the return is unprocessable.
(2) Edit CCC "U" and attach a Form 4227, Intra-SC Reject or Routing Slip to the face of the return. Check the Reject Correction box on Form 4227 and notate "Form 1120-ND with initial taxes on self-dealing."
Return Processing - Form 1120-PC (OSPC only)
(1) This subsection provides instructions for processing Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return.
(2) Form 1120-PC is processed only at the Ogden Campus.
(3) Form 1120-PC can be filed on a calendar or fiscal year basis.
(4) Action Codes apply to Form 1120-PC, see IRM 3.11.16.3.1, Action Codes.
(5) To convert prior year tax returns, see Exhibit 3.11.16-14, Form 1120-PC - Prior Year Conversion Chart.
Sequence - Form 1120-PC
(1) Document Perfection is responsible for arranging Form 1120-PC in the following order when transcription line entries are present:
Pages 1 through 9
Schedule N (Form 1120)
Form 4626 (Tax period 202301 and later (2023 Revision and later))
Form 4136
Form 8978
Form 965-B
Form 8941
Form 3800
Form 4255 (Tax period 2024 and later)
(2) It is not necessary to sequence the forms or schedules listed above if there are no transcription line entries.
(3) It is not necessary to sequence an Amended return. See IRM 3.11.16.3.9, Amended Returns, for more information.”
EIN
(1) See IRM 3.11.16.6.2, Entity Perfection - Employer Identification Number (EIN).
Name Control/"In-Care-Of" Name
(1) See IRM 3.11.16.6.3, Entity Perfection - Name Control, and IRM 3.11.16.6.4, Entity Perfection - "In-Care-Of" Name.
Address
(1) See IRM 3.11.16.6.5, Entity Perfection - Domestic Addresses, and IRM 3.11.16.6.6, Entity Perfection - Foreign Address.
Tax Period
(1) Edit Tax Period ending (except current calendar year) in YYMM format to the right of the title on Page 1 of the return. See IRM 3.11.16.7.1, Tax Period - Ending.
(2) Edit the Tax Period Beginning to the left of Form 1120-PC title area in MMDDYY format on an Initial, Final or Short Period return. See IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
(3) See IRM 3.11.16.7.3, Early Filed Returns - Full Year and Short Period, through IRM 3.11.16.7.9, Short Period Returns - With Prepaid Credits, for editing Short Period returns.
Received Date
(1) Enter in MMDDYY format.
(2) Edit the received date in the dotted portion of Lines 5 through 12. See IRM 3.11.16.8, Received Date.
Computer Condition Codes
(1) Valid Codes for 1120-PC are B, D, E, F, G, I, J, L, M, N, O, R, S, T, W, X, Y, Z, 3, 5, 6, 7, and 8.
(2) Edit in the dotted portion of Lines 1 through 3. See IRM 3.11.16.9.1, Computer Condition Codes.
Return Processing Code (RPC)
(1) Return Processing Code (RPC) is an alpha or numeric character used to alert the computer to a special condition or computation.
(2) RPCs are edited on Page 1, in the right margin next to Line 1 of Form 1120-PC.
(3) Refer to the table below for an explanation of when to edit each RPC.
RPC | Explanation |
|---|---|
E | Form 8865, Schedule G, Statement of Application for the Gain Deferral Method Under Section 721(c), is attached. |
F | Form 8865, Schedule H, Acceleration Events and Exceptions Reporting Relating to Gain Deferral Method Under Section 721(c), is attached. |
G | Form 5471, Schedule G-1, Cost Sharing Arrangement is attached. |
J | For Tax Period 202201 - 202212, taxpayer writes IRA22 DPE on Form 3800,Form 1120-PC, Line 15j or on an attachment.
|
K | For Tax Period 202201 - 202212, taxpayer writes IRA22TRE on Form 3800, or on an attachment, or at the top of the return.
|
L | Form 7204, Consent to Extend the Time to Assess Tax Related to Contested Foreign Income Taxes - Provisional Foreign Tax Credit Agreement is attached. |
M | Form 7205, Energy Efficient Commercial Buildings Deduction is attached. |
N | Form 4626, Alternative Minimum Tax (2023 Revision and later) is attached or Form 1120-PC, Page 1, Line 6. |
1 | Form 8991, Tax on Base Erosion Payments of Taxpayers with Substantial Gross Receipts, is attached. |
2 | Form 8992, U.S Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI), is attached. |
3 | Form 8993, Section 250 Deduction for Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI), is attached. |
4 | Form 8994, Employer Credit for Paid Family and Medical Leave, is attached. |
6 | Form 8996, Qualified Opportunity Fund, is attached. |
7 | Form 8990, Limitation on Business Interest Expense IRC 163(j), is attached. |
Schedule M-3 Checkbox
(1) Edit Computer Condition Code "B" when Box A3 (Box A2 for 2006), "Schedule M-3 (Form 1120-PC) attached" is marked or Schedule M-3 (Form 1120-PC) is attached to Form 1120-PC.
Note: See IRM 3.11.16.10.1, Audit Codes, to determine is Audit Code 2 is applicable.
(2) Do not correspond for Schedule M-3 if Box A3 is checked and Schedule M-3 is not attached.
Consolidated Returns
(1) Form 1120-PC filers can file a Consolidated return. A Consolidated 1120-PC filer is identified by checking Box A(1) on Page 1 of Form 1120-PC.
(2) A consolidated return is defined as a single income tax return having combined financial data for a parent corporation and one or more subsidiary or affiliated corporations.
(3) The parent corporation files the return, and its name, which appears on the return, including the words, "and subsidiaries," "and affiliated companies" etc.
(4) The parent corporation must submit along with the Form 1120-PC a Form 851 on an annual basis. Correspond for missing or incomplete Form 851.
(5) Form 851 must be processed per the instructions in IRM 3.11.16.29.3, Form 851 - Affiliations Schedule.
(6) The presence of Form 1122 is another indication of a consolidated return. See IRM 3.11.16.29.4, Form 1122 - Authorization and Consent of Subsidiary Corporation to be included in a Consolidated Income Tax Return.
Additional Form 1120-PC Perfection
(1) This subsection addresses the editing of additional Form 1120-PC information. See IRM 3.11.16.10, Additional Return Perfection.
Form 8844 Indicator
(1) Edit "1 - 1" in the left margin of Form 1120-PC near Line 12.
See IRM 3.11.16.11.21.1, Form 8844, Empowerment Zone Employment Credit.
Audit Codes
(1) Edit a "2" followed by the right Audit Code(s) in the left margin near Line 12 (e.g., "2-1").
(2) Valid Audit codes are 1, 2, 3, and C. See IRM 3.11.16.10.1, Audit Codes.
Penalty and Interest Code
(1) Edit "4 - 1" in the left margin near Line 12 when precomputed delinquency penalty and/or interest is shown on a return with a received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
(2) This code is valid only within the unextended ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ some other situation, such as an estimated Tax Penalty, do not Code "4 - 1" and do not insert Condition Code "R." If only interest is shown, edit CCC "R."
Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Line 1 - Taxable Income
(1) If blank, edit Line 1 amount from Schedule A, Line 37. Bracket if negative.
Lines 3a - 4 - Taxes
(1) Form 1120-PC was redesigned for the 2024 form revision and now has lines for several different income tax types:
Line 3a - Income Tax.
Line 3b - Section 1291 Tax from Form 8621.
Line 3c - Additional Tax Under Section 197(f).
Line 3d - Base Erosion Minimum Tax from Form 8991.
Line 3e - Amount from Form 4255, Part I, Line 3 Column (q) - If Form 1120-PC, Page 1, Line 3e has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 4255 is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(Line 5 for 2023 and prior)Line 3z - Other Chapter 1 Tax.
Line 4 - Total Income Tax.
Line 6 - Corporate Alternative Minimum Tax (CAMT) (202301 and later)
(1) Corporate Alternative Minimum Tax (CAMT)
(2) If there is a significant amount on Line 6 for "Corporate Alternative Minimum Tax" and Form 4626 is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Line 6 - Tax Preference Code (201811 and prior)
(1) For Tax Period 201811 and prior:
Enter Code "1" to Page 1, bottom center margin if a significant amount is present on Line 6.
If there is an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Line 6 for "Alternative Minimum Tax" and Form 4626 is not attached, Correspond.
Note: If an amount is present on Line 6 for Tax Period 201812 and later, this amount is for the base erosion minimum tax, no editing in necessary.
Lines 8a through 13z
(1) Line 8a - If Line 8a, has an entry, check for Form 1118., Foreign Tax Credit (Corporations).
If | Then |
|---|---|
The entry on Line 8a is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 1118 is missing, | Correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
There is an entry on Line 8a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Edit Audit Code “2.” |
(2) Line 8b - Form 8834, Qualified Electric Vehicle Credit. If Form 8834 is not attached, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(3) Line 8c - General Business Credit.
If an amount is present or Form 3800 is attached, follow the instructions in IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit.
(4) Line 8d- Form 8827, Credit for Prior Year Minimum Tax Corporations.
(5) Line 8e - Bonds credits from Form 8912. If the entry on Line 8e is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the Form 8912 is missing, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(6) Line 12 - For Tax period 202201 - 202212, if a significant amount is present on Line 12 and the taxpayer writes "CAMT" or "IRA AMT" or indicates the amount is for Corporate AMT, continue processing, no action is required.
(7) Lines 13a - 13z (Lines 12a - 12z for 2023) - Other Taxes
If | Then |
|---|---|
The entry on Line 13a is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 4255 is missing, | Correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
The entry on Line 13b is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8611 is missing, | Correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
There is an entry on Line 13z, | Accept the taxpayer’s entry. |
Reminder: Look for any Unusual Credits. See IRM 3.11.16.9.1.14, CCC "N" - Joint Committee Case, and IRM 3.11.16.39.12.2, Audit Codes.
Lines 15 through 20 - Tax Computation and Payments
(1) Line 15 - Total Tax.
(Line 14 for 2023)
(Line 13 for 2022 and prior)
If blank and there are entries on Lines 10 through 14, add entries from Lines 10, 11, 12 and 14 and edit on Line 15.
For 2023, add lines 9, 10, 11 and 13 and edit on Line 14.
For 2022 and prior, add lines 9 through 12 and edit on Line 13.If pre-computed interest or delinquency penalty or an additional charge is evident, ensure that it has not been included in Line 15.
(Line 14 for 2023)
(Line 13 for 2022 and prior)"X" the Line 15 (Line 14 for 2023 or Line 13 for 2022 and prior) amount.
Delete the interest, penalty, or additional charge from the total.
Edit the correct Total Tax to the left of the original entry.
If | Then |
|---|---|
The amount on Line 15 (Line 14 for 2023 or Line 13 for 2022 and prior) has pre-computed interest or penalty or additional charge, |
(2) Line 16a - Accept taxpayer’s entry.
(3) Line 16b - Accept taxpayer’s entry.
(4) Line 16c - If there is a significant entry on Line 16c, refer to CCC "O" procedures. See IRM 3.11.16.9.1.15, CCC "O" - Module Freeze.
(Line 15c for 2023)
(Line 15e for 2022 -2018)
(Line 14e for 2017 and prior)
(5) For form revisions 2023 and prior, Line 15d was a subtotal line for Total Estimated Credits. If blank and there are entries on Lines 15a through 15c, add Lines 15a and 15b minus Line 15c and enter on Line 15d.
(Line 15f for 2022 - 2018) (Line 14f for 2017 and prior)
For 2022 - 2018, add lines 5a through 5d minus Line 5e.
For 2017 and prior, Add Lines 14a through 14c minus 14e.
(6) Line 16d - Tax Deposited with Form 7004.
(Line 15e for 2023)
(Line 15g for 2022 - 2018)
(Line 14g for 2017 and prior)
(7) Line 16e - Credit by Reciprocal for Tax Paid by Attorney-In Fact Under IRC 835(d) (Positive Only.)
(Line 15f for 2023)
(Line 15h for 2022-2018) (Line 14h for 2017 and prior)
(8) Line 16f - Elective Payment Election.
(Line 15g for 2023)
(9) Line 16z - Other Credits and Payments.
(Line 15z for 2023)
(Line 15i for 2022 - 2018)
(Line 14i for 2017 and prior)
If | And | Then |
|---|---|---|
The taxpayer has claimed backup withholding ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Line 16z | Form 1099 is not attached, | Correspond using Letter 118C. |
The taxpayer has claimed Section 1341 Credit for Repayments of Amounts Included from Earlier Years, |
| Accept the taxpayers amount. Note: The Section 1341 credit amount can be credit elect. If there is a credit elect amount present in the "Credited to estimated tax" line, then accept the credit elect amount for Section 1341. |
(10) Line 18 - Estimated Tax Penalty. If Form 1120-PC, Line 18 (Line 17 for 2023) (Line 16 for 2022 - 2018) (Line 15 for 2017 and prior) is blank and Form 2220 is attached with a significant entry on Page 2, Line 38, then edit the amount from Form 2220 , Page 2, Line 38 to Form 1120-PC Line 18 of Form 1120-PC. See IRM 3.11.16.11.6.6, Line 34 - Estimated Tax Penalty.
(Line 17 for 2023)
(Line 16 for 2022 - 2018)
(Line 15 for 2017 and prior)
(11) Lines 19 and 20 - Amount owed/Overpayment. Edit as positive only. If the taxpayer enters a negative amount, do not bracket. Edit the proper entry to Line 19 or 20.
(Lines 18 and 19 for 2023)
(Lines 17 and 18 2022 - 2018)
(Line 16 and 17 for 2017 and prior)
If both are blank. Do both of the following:
Add Lines 15 and 18 minus 17.
For 2023, add Lines 14 and 17 minus 16
For 2022 - 2018, add Lines 13, 14, and 16 minus 15k.
For 2017 and prior, add Lines 13 and 15 minus Line 15k.Edit the positive result on Line 19 or the negative result (do not bracket) on Line 20.
For 2023, edit the positive result on Line 18 or the negative result on Line 19.
For 2022 - 2018, edit the positive result on Line 17 or the negative result on Line 18.
For 2017 and prior, edit the positive result on Line 16 or the negative result on Line 17.
(12) If pre-computed interest or delinquency penalty or additional charge is evident, ensure that it has not been included in Line 19 or reduced Line 20.
For 2023, ensure that it has not been included in Line 18 or reduced by Line 19.
For 2022 - 2018, ensure that it has not been included in Line 17 or reduced by Line 18.
For 2017 and prior, ensure that it has not been included in Line 16 or reduced by Line 17.
If | Then |
|---|---|
The amount on Line 19 has pre-computed interest or penalty or additional charge, |
|
The amount on Line 20 is reduced by pre-computed interest or penalty or additional charge, |
|
(13) Line 20 (center) - Estimated Tax Credit.
(Line 19 (center) for 2022 - 2018) (Line 18 (center) for 2017 and prior)
Tax and Payments - Prior Year Returns
(1) Line 14 - Reserved - For Tax Period 201712 through 202012, follow the instructions in a) and b).
If blank enter amount from Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, as follows:
Edit CCC "J" and Action Code "460."
Reporting Tax Year | Form 965-B |
|---|---|
2017 | Part II, Column (k), Line 1 |
2018 | Part II, Column (k), Line 2 |
2019 | Part II, Column (k), Line 3 |
2020 | Part II, Column (k), Line 4 |
(2) Lines 15b -The instructions for this line only apply to Tax Period 201812 and prior. For Tax Period 201901 and later, no action is needed. If a return is for Tax Period 201812 and prior and the taxpayer notates "Section 847" or reports SETP on Line 15b (Lines 14b and/or 14d for 2017 and prior) or Form 8816 is attached. See IRM 3.11.16.3.10, IRC 847 Deduction.
(3) Line 15d - Reserved - For Tax Period 201712 through 202012, follow the instructions in a) and b).
If blank enter amount from Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, as follows:
Edit CCC "J" and Action Code "460."
Reporting Tax Year | Form 965-B |
|---|---|
2017 | Part II, Column (d), Line 1 |
2018 | Part II, Column (d), Line 2 |
2019 | Part II, Column (d), Line 3 |
2020 | Part II, Column (d), Line 4 |
(4) Line 15j - Refundable credits from Form 8827 Revisions 2019 and prior:
(Line 14j for 2017 and prior)
If | Then |
|---|---|
The amount on Line 15j (Line 14j for 2017 and prior) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8827 is not attached, | Correspond for Form 8827. |
Paid Preparer Information
(1) See IRM 3.11.16.11.8, Paid Preparer Checkbox Indicator, and IRM 3.11.16.11.9, Paid Preparer Section.
Schedule A, Page 2
(1) Line 3b - Interest Exempt Under IRC 103.
If there is a positive amount on Page 3, Schedule B, Line 1b, Column (a), edit the amount to Page 2, Schedule A, Line 3b, Column (a).
Dummy a Page 2 if necessary.
"X" if negative.
(2) Line 6 - Capital gain net income. If there is a significant entry and Schedule D (Form 1120) is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(3) Line 7- Net Gain or Loss from Form 4797. If an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 4797 is not attached and the taxpayer has not attached Form 4684, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(4) Line 14 - If Line 14 is blank and there are entries on Lines 1 through 13, add Lines 1 through 13 and edit the amount on Line 14.
(5) Line 16 - Salaries and Wages, no editing is required.
Schedule C, Page 4 -
Dividends, Inclusions, Dividends-Received Deduction, and Other Special Deductions
(1) If an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on any of Lines 3, 6, 7, 8, 10, 11, 12a, 12b, 12c, 13, and/or 14 (Lines 3, 6, 7, 8, 10, 11, and/or 12 for 2017 and prior) edit Audit Code "2."
Schedule I, Page 7, Boxes 2a and 2b - Kind of Company Code
(1) Code "1" if Page 7, Schedule I, Box 2a is checked.
(2) Code "2" if Page 7, Schedule I, Box 2b is checked.
(3) Code "1" if neither box is checked or both boxes are checked.
(4) Edit the code to the right of Line 2. See Figure 3.11.16-39.
(5) If Page 7 of Form 1120-PC is not present, dummy a Page 7 and edit the right code. 
Schedule I, Page 7, Question 4 - Name and EIN of Common Parent
(1) If Schedule I, Question 4 meets one of the following conditions, a Name Control and EIN must be edited:
If | Then |
|---|---|
|
|
Question 4 is answered "No" or neither box is checked and a corporation's name and EIN are not present, | No editing is required. |
Question 4 is answered "No" or neither box is checked and a corporation's name and/or EIN are the same as the return name and/or EIN, | No editing is required. |
Schedule I, Line 6c - Number of Forms 5472
(1) No entry is required for Schedule I, Line 6c unless Form 5472 is present.
(2) Edit Line 6c as follows:
If | And | Then |
|---|---|---|
A number is present for Schedule I, Line 6c, |
| No editing is required. |
Schedule I, Line 6c is blank, | One or more Forms 5472 is attached, | Edit the number of Form 5472(s) in the dotted line area of Line 6c. |
Form 5472 is attached, | Schedule I is not present, | Dummy a Schedule I and edit the number of Form 5472(s) to Schedule I, Line 6c. |
Schedule I, Lines 20a, 20b, and 20c
(1) If Question 20b is marked "Yes" or Question 20c is marked "No", Form 4626 must be attached. Correspond if Form 4626 is not attached.
(2) No editing is required.
(3) Data will enter:
"0" if no box is checked.
"1" if "Yes" box checked.
"2" if "No" box checked.
"3" if "Both" boxes checked.
Total Assets Ending - Page 8
(1) Edit the amount from Schedule L, Line 15, Column (d) to the bottom right corner of Page 1.
If Line 15, Column (d) is blank, compute Lines 1 through 14 if present and edit on Page 1.
Annual Statement - Form 1120-PC
(1) Property and Casualty insurance companies must include a copy of their annual statement with Form 1120-PC. The annual statement must be in the format approved by the National Association of Insurance Commissioners (NAIC). The following reports/statements are not acceptable:
Annual Reports
Financial Statements
Financial Reports
Note: The above list is not all inclusive.
(2) Verify that annual statements for Property and Casualty insurance companies are attached to return.
(3) If attached, continue normal processing of return.
(4) If an annual statement is not attached, use the following chart to determine if it is required:
If | Then |
|---|---|
The taxpayer indicates that the State does not require the firm to file an annual statement and a pro-form annual statement is not attached, | Correspond for a pro-forma annual Statement using Letter 118C. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
| Do not correspond for the missing annual statement. |
A re-entry mixed component return was originally filed electronically, | Do not correspond for the missing annual statement. |
(5) If annual statement is required and is missing, prepare an approved Correspondence Action Sheet requesting correspondence for missing annual statement. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(6) Annotate upper left margin of return; "Annual Statement Requested on ____," filling in the blank with the date correspondence was initiated.
(7) Photocopy Page 1 of Form 1120-PC.
(8) Attach photocopy to the Correspondence Action Sheet and send to Correspondence.
(9) Continue normal processing of the return. Return is not to be rejected or suspended for any correspondence regarding missing Annual Statements.
Form 4626 - Corporate Alternative Minimum Tax (CAMT) (Tax Period 202301 and later)
(1) The instructions in this subsection apply to Tax Period 202212 and later.
(2) Place Form 4626 in sequence order if significant entries are present on any of the lines:
Question A is checked
Question B is checked
Part I, Line 1a, Column a
Part I, Line 1a, Column b
Part I, Line 1a, Column c
Part I, Line 1f, Column a
Part I, Line 1f, Column b
Part I, Line 1f, Column c
Part I, Line 5, Column a
Part I, Line 5, Column b
Part I, Line 5, Column c
Part I, Line 13, Column a
Part I, Line 13, Column b
Part I, Line 13, Column c
Part I, Line 15
Part II, Line 1a
Part II, Line 1f
Part II, Line 4
Part II, Line 5
Part II, Line 8
Part II, Line 9
Part II, Line 13
(3) Edit RPC "N" if Form 4626 (2023 revision and later) is attached. See IRM 3.11.16.39.8, Return Processing Code.
Schedule N (Form 1120) - Foreign Operations of U.S. Corporations
(1) For processing instructions, see IRM 3.11.16.11.47, Schedule N (Form 1120) - Foreign Operations of U.S. Corporations.
Form 4136 - Credit for Federal Tax Paid on Fuels
(1) For processing instructions, see IRM 3.11.16.19, Form 4136 - Credit for Federal Tax Paid on Fuels.
Form 8978 and Form 8978, Schedule A
(1) Form 8978 is valid for Tax Period ending 201712 and later.
(2) The "Source of review year adjustments" checkboxes on Form 8978, Partner’s Additional Reporting Year Tax and Form 8978, Schedule A, Partner’s Additional Reporting Year Tax (Schedule of Adjustments), are valid for Tax Period 202112 and later.
(3) Place Form 8978 in sequence order if any of the following apply:
The "Source of review year adjustments" checkboxes are checked on Form 8978.
The "Source of review year adjustments" checkboxes are checked on Form 8978, Schedule A.
Significant entries are present on Form 8978, Part I, Line 14, Part II, Line 16, or Part III, Line 18.
Note: Any information from the checkboxes on Form 8978, Schedule A, will be transcribed on Form 8978.
(4) Edit the digit to the right margin of Form 8978, Part I row as follows:
If | And | Then |
|---|---|---|
Only Form 8978 is attached, | One or more of the boxes are checked, | Edit:
|
Form 8978 and Form 8978, Schedule A, are attached, | The boxes are marked the same on both forms, | Use the Form 8978 data and edit as shown above. |
Form 8978 and Form 8978, Schedule A, are attached, | The boxes are marked differently, | Use the Form 8978, Schedule A, data and edit as shown above. |
Only Form 8978, Schedule A, is attached, |
| No editing is required. |
Note: No editing is required on Lines 14, 16 and 18.
(5) Part I, Line 14 - Total Increase/decrease to reporting year tax.
(6) Part II, Line 16 - Total Penalties.
(7) Part III, Line 18 - Total Interest.
Form 965-B - Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts
(1) Form 965-B is valid for Tax Period ending 201712 and later.
(2) Place Form 965-B in sequence order if a significant amount is present (other than the pre-printed date) on any of the following lines:
Part I, Lines 1 through 5, col (a), Year of Section 965(a) Inclusion or Liability Assumed.
Part I, Lines 1 through 5, col (h), Net 965 Tax Liability Transferred (Out) Transferred (In), or Subsequent Adjustments, if any.
Part I, Lines 1 through 5, col (i), Tax Identification Number of buyer/transferee or Seller/transferor.
(3) Edit "1" in the right margin of Part I if more than five lines of entries are present.
Form 8941 - Credit for Small Employer Health Insurance Premiums
(1) Place Form 8941 in sequence order if significant entries are present.
(2) For prior year revisions edit as follows:
If | And | Then |
|---|---|---|
2013 and 2012 revisions, | a significant amount is present on Line 1a or an EIN is present on Line 1b, |
|
Form 5884-B - New Hire Retention Credit
(1) Form 5884-B, New Hire Retention Credit is historical (2010 through 2011).
Form 3800 - General Business Credit
(1) Form 3800, General Business Credit, must be filed with corporate tax returns when a significant amount is present on Page 1, Line 8c - General Business Credit.
(2) Place Form 3800 in sequence order if significant entries are present.
(3) If an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on any line of Form 3800, Part III, Column (g) (Column (j) for 2023 and prior) correspond for the supporting credit form. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1a, 1b, 1c, 1e, 1f, 1h, 1i, 1j, 1k, 1l, 1m, 1n, 1p, 1s, 1t, 1w, 1x, 1y, 1aa, 1bb, 1zz, 3, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (b) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2023 - If Form 3800, Part III, Line 1b, 1c, 1e, 1f, 1g, 1h, 1i, 1j, 1k, 1m, 1n, 1p, 1s, 1t, 1u, 1w, 1x, 1y, 1aa, 1bb, 1cc, 1dd, 1ee, 1ff, 1zz, 3, 4a, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (d) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1b, 1c, 1e, 1f, 1g, 1h, 1i, 1j, 1k, 1m, 1n, 1p, 1q, 1s, 1t, 1u, 1v, 1w, 1x, 1y, 1aa, 1bb, 1cc, 1dd, 1ee, 1ff, 1gg, 1zz, 3, 4a, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (c) has an EIN, do not correspond and continue to process the return.
(4) See IRM 3.11.16.11.21, Line 5c - General Business Credit and Exhibit 3.11.16-19, Form 3800 - Prior Year Conversion Chart.
Form 4255 - Certain Credit Recapture, Excessive Payments, and Penalties
(1) Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties, is valid for Tax Period ending 202401 and later.
(2) Place Form 4255 in sequence order if the form is attached and significant entries are present in Part I, Columns (s) or (t). See IRM 3.11.16.39.1, Sequence - Form 1120-PC.
(3) If the Tax Period is 202312 and prior, do not sequence the Form 4255.
(4) The following lines will be transcribed on Form 4255.
Form 4255, Part I | Credit From | Column |
|---|---|---|
Line 1a | Form 7207 | (s) |
Line 1a | Form 7207 | (t) |
Line 1b | Form 3468, Part III | (s) |
Line 1b | Form 3468, Part III | (t) |
Line 1c | Form 7210 | (s) |
Line 1c | Form 7210 | (t) |
Line 1d | Form 3468, Part IV | (s) |
Line 1d | Form 3468, Part IV | (t) |
Line 1e Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7218 | (s) |
Line 1e Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7218 | (t) |
Line 1f Caution: If the Tax Period is 202312 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7213, Part II | (s) |
Line 1f Caution: If the Tax Period is 202312 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7213, Part II | (t) |
Line 1g Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 3468, Part V | (s) |
Line 1g Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 3468, Part V | (t) |
Line 1h | Form 8936, Part V | (s) |
Line 1h | Form 8936, Part V | (t) |
Line 1i Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7211 | (s) |
Line 1i Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7211 | (t) |
Line 1j | Form 3468, Part VI | (s) |
Line 1j | Form 3468, Part VI | (t) |
Line 1k | Form 8835 | (s) |
Line 1k | Form 8835 | (t) |
Line 2a | Form 8933 | (s) |
Line 2a | Form 8933 | (t) |
Line 2b | Form 8911, Part I | (s) |
Line 2b | Form 8911, Part I | (t) |
(5) If there is an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Form 1120-PC, Page 1, Line 3e, correspond for a Form 4255 if missing. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Return Processing - Form 1120-REIT
(1) This subsection provides instruction for processing Form 1120-REIT, Real Estate Investment Trust.
(2) Form 1120-REIT can be filed on a calendar or fiscal year basis.
(3) Action Codes apply to Form 1120-REIT. See IRM 3.11.16.3.1, Action Codes.
(4) To convert prior year tax returns. See Exhibit 3.11.16-15, Form 1120-REIT - Prior Year Conversion Chart.
Sequence - Form 1120-REIT
(1) Document Perfection is responsible for arranging Form 1120-REIT in the following order when transcription line entries are present:
Pages 1, 2, 3, 4, 5
Schedule N (Form 1120)
Form 1120, Schedule D
Form 8949
Form 8996
Schedule O (Form 1120) (Tax period 201811 and prior only)
Form 4626 (Tax period 201811 and prior only)
Form 4136
Form 8978
Form 965-B
Form 8941
Form 3800
Form 8997
Form 4255 (Tax period 2024 and later)
(2) It is not necessary to sequence the forms or schedules listed above if there are no transcription line entries.
(3) It is not necessary to sequence an Amended return. See IRM 3.11.16.3.9, Amended Returns, for more information.”
EIN
(1) See IRM 3.11.16.6.2, Entity Perfection - Employer Identification Number (EIN).
Name Control/"In-Care-Of" Name
(1) See IRM 3.11.16.6.3, Entity Perfection - Name Control, and IRM 3.11.16.6.4, Entity Perfection "In-Care-Of" Name.
Address
(1) See IRM 3.11.16.6.5, Entity Perfection - Domestic Addresses, and IRM 3.11.16.6.6, Entity Perfection - Foreign Address.
Tax Period
(1) Edit Tax Period ending (except current calendar year) in YYMM format to the right of the title on Page 1 of the return, see IRM 3.11.16.7.1, Tax Period - Ending.
(2) Edit the Tax Period Beginning to the left of Form 1120-REIT title area in MMDDYY format on an Initial, Final or Short Period return, see IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
(3) See IRM 3.11.16.7.3, Early Filed Returns - Full Year and Short Period, through IRM 3.11.16.7.9, Short Period Returns - With Prepaid Credits, for editing Short Period returns.
Received Date
(1) Enter in MMDDYY format.
(2) Edit the received date in the dotted portion of Lines 9 through 22, see IRM 3.11.16.8, Received Date.
Computer Condition Codes
(1) Valid Codes for Form 1120-REIT are D, E, F, G, J, L, M, O, P, R, S, T, W, X, Y, 1, 3, 7, 8, and 9.
(2) Edit to the dotted portion of Lines 1 through 8. See IRM 3.11.16.9.1, Computer Condition Codes.
Return Processing Code (RPC)
(1) Return Processing Code (RPC) is an alpha or numeric character used to alert the computer to a special condition or computation.
(2) RPCs are edited on Page 1, in the right margin next to Line 1 of Form 1120-REIT.
(3) Refer to the table below for an explanation of when to edit each RPC.
RPC | Explanation |
|---|---|
E | Form 8865, Schedule G, Statement of Application for the Gain Deferral Method Under Section 721(c), is attached. |
F | Form 8865, Schedule H, Acceleration Events and Exceptions Reporting Relating to Gain Deferral Method Under Section 721(c), is attached. |
G | Form 5471, Schedule G-1, Cost Sharing Arrangement is attached. |
J | For Tax Period 202201 - 202212, taxpayer writes IRA22 DPE on Form 3800,Form 1120-REIT, Line 25f(1) or on an attachment.
|
K | For Tax Period 202201 - 202212, taxpayer writes IRA22TRE on Form 3800, on an attachment, or at the top of the return.
|
L | Form 7204, Consent to Extend the Time to Assess Tax Related to Contested Foreign Income Taxes - Provisional Foreign Tax Credit Agreement is attached. |
M | Form 7205, Energy Efficient Commercial Buildings Deduction is attached. |
2 | Form 8992, U.S Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI), is attached. |
4 | Form 8994, Employer Credit for Paid Family and Medical Leave, is attached. |
6 | Form 8996, Qualified Opportunity Fund, is attached. |
7 | Form 8990, Limitation on Business Interest Expense IRC 163(j), is attached. |
9 | Form 8997, Initial and Annual Statement of Opportunity Fund (QOF) Investments, is attached. |
ABLM Code
(1) Edit "001" to the left of Box B when:
Page 1, Box B2 is checked.
Page 3, Schedule J, Line 6a (2024 revision) has an entry.
Page 3, Schedule J, Line 5 (2023 and prior) has an entry.Schedule PH (Form 1120) is attached.
Initial Return Code
(1) Edit in the margin to the right of Box D. See IRM 3.11.16.9.4, Initial Return Code.
Additional Form 1120-REIT Perfection
(1) This subsection addresses the editing of additional Form 1120-REIT information. See IRM 3.11.16.10, Additional Return Processing.
Form 8844 Indicator
(1) Edit "1 - 1" in the left margin of Form 1120-REIT near Line 12.
See IRM 3.11.16.11.21.1, Form 8844, Empowerment Zone Employment Credit.
Audit Codes
(1) Edit a "2" followed by the right Audit Code(s) in the left margin near Line 12 (e.g., "2 - 1").
(2) The valid Audit Codes are 1, 2, 3, 4, C and W. For specific Audit Code requirements, follow the instructions in IRM 3.11.16.10.1, Audit Codes.
Penalty and Interest Code
(1) Enter a Code "4 - 1" in the left margin near Line 12 when precomputed delinquency penalty and/or interest is shown on a return with a received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
(2) This code is valid only within the unextended ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ some other situation, such as an estimated Tax Penalty, do not Code "4 - 1" and do not insert Computer Condition Code "R." If only interest is shown, edit CCC "R."
Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Reserve Code
(1) The Reserve Code is "4."
(2) Edit "5 - 4" in the left margin near Line 12 if Form 2220 is attached and Part II, Box 8 is checked for Large Corporation.
Installment Sale Indicator (Form 6252)
(1) Edit "6 -" followed by the right Installment Sale Indicator code in the left margin near Line 12 when Form 6252, Installment Sale Income, is present (e.g., "6 - 1"). See IRM 3.11.16.10.4, Installment Sale Indicator (Form 6252).
Total Assets - Box E
(1) Compare the amount in Box E to the amount on Schedule L, Line 13, Column (d).
(2) If the amount to be edited will change, then resolve the difference in favor of the Schedule L amount and correct Box E. Bracket if negative.
Exception: The return is a "Final" return, resolve the difference in favor of the amount in Box E.
(3) If Schedule L, Line 13, Column (d) is blank, compute Lines 1 through 12, Columns (c) and (d) if present and compare with the amount in Box E.
(4) If Box E is blank, enter Total Assets from Schedule L, Line 13, Column (d). Bracket if negative.
(5) No editing is required if Schedule L is not present or if there is no significant entry on Schedule L, Line 13, Column (d). (If Line 13, Column (d) is blank, compute Lines 1 through 12, Columns (c) and (d) if present.)
Page 1 - Gross Income Items, Lines 1 through 8
(1) Line 1 - Dividends.
(2) Line 2 - Interest.
(3) Line 3 - Gross Rents from Real Property.
(4) Line 4 - Other Gross Rents.
(5) Line 5 - Capital Gain. For Schedule D processing instructions, see IRM 3.11.16.11.4.7, Line 8 - Capital Gain.
(6) Line 6 - Net gain or loss from Form 4797, Part II, line 17. If an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 4797 is not attached and the taxpayer has not attached Form 4684, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(7) Line 7 - Other Income: If the taxpayer inserts "Other Income" items on Line 7, instead of on Lines 1 through 6.
Add the items and edit the total to Line 7. Bracket if negative.
"X" the "Other Income" items from Lines 1 through 6.
(8) Line 8 - Total Income:
Compute and enter significant amount if blank. Bracket if negative.
If the only income on the return is "Total Income" on Line 8 and no detailed schedule is found, enter the Line 8 amount on Line 7. Bracket if negative.
Page 1 - Deduction Items, Lines 9 through 21
(1) Line 9 - Compensation of Officers.
(2) Line 10 - Salaries and Wages (less employment Credits). Accept taxpayer’s entry.
(3) Line 11 - Repairs and Maintenance.
(4) Line 12 - Bad Debts.
(5) Line 13 - Rents.
(6) Line 14 - Taxes and licenses.
(7) Line 15 - Interest.
(8) Line 16 - Depreciation.
(9) Line 17 - Advertising.
(10) Line 18 - Energy Efficient Commercial Buildings Deduction - If Form 7205, Energy Efficient Commercial Buildings Deduction, is attached, edit RPC "M" See IRM 3.11.16.40.8, Return Processing Code.
(11) Line 19 (Line 18 for 2022 and prior) - Other deductions: If the taxpayer used "Other Deductions" on Lines 9 through 18.
Add the items and edit the total to Line 19 (Line 18 for 2022 and prior), "Other Deductions." Bracket if negative.
"X" the "Other Deductions" items from Lines 9 through 18 (Line 17 for 2022 and prior).
(12) Line 20 (Line 19 for 2022 and prior) - Total deductions:
If missing or illegible, add Lines 9 through 19 and enter total on Line 20. Bracket if negative.
If the only deduction entry is on Line 20 and no detailed schedules are found showing allocation of deductions, enter this amount on Line 19 as "Other Deductions." Bracket if negative.
(13) Line 22a (Line 21a for 2022 and prior) - Net Operating Loss Deduction.
(14) Line 22b (Line 21b for 2022 and prior) - Deduction for dividends paid.
(15) Line 22c (Line 21c for 2022 and prior) - IRC 857 Deduction.
Tax Computation - Lines 24 through 28
(1) Edit Line 24 (Line 23 for 2022 and prior) - Total Tax as follows:
If blank, enter from Page 3, Schedule J, Line 9.
(Line 11 for 2023)
(Line 8 for 2021 and 2022)
(Line 7 for 2020 and prior)If pre-computed interest or delinquency penalty or an additional charge is evident, ensure that it has not been included in Line 24 (Line 23 for 2022 and prior) .
"X" the Line 24 (Line 23 for 2022 and prior) amount .
Delete the interest, penalty, or additional charge from the total.
Edit the correct Total Tax to the left of the original entry.
If | Then |
|---|---|
The amount on Line 24 (Line 23 for 2022 and prior) has pre-computed interest or penalty or additional charge, |
(2) Line 25a - Preceding Year’s Overpayment Credited to the Current Year. Accept taxpayer’s entry.
(3) Line 25b - Current Year’s Estimated Tax Payments. Accept taxpayer’s entry.
(4) Line 25c (Line 24c for 2017 and prior) - If there is a significant entry on Line 25c (Line 24c for 2017 and prior), refer to CCC "O" procedures, see IRM 3.11.16.9.1.15, CCC "O" - Module Freeze.
(5) Line 25d was used as a subtotal line for Estimated Tax Credits for 2023 and prior.(Line 24d for 2017 and prior). If editing a 2023 and prior form and Line 25d is blank, add Lines 25a and 25b (Line 24a and 24b 2017 and prior), subtract Line 25c (Line 24c for 2017 and prior) and enter the total amount on Line 25d (Line 24d 2017 and prior).
(6) Line 25d - -Tax Deposited with Form 7004 .
(Line 25e for 2023 - 2018)
(Line 24e for 2017 and prior)
(7) Line 25f(1) (Tax Period 202201-202212) - If a significant amount is present and "IRA22 DPE" is notated, edit RPC "J."
(8) Line 25e - Credit for Tax Paid on Undistributed Capital Gains..
Line 25f for 2023)
(Line 25f(1) for 2022 - 2018)
(Line 24f for 2017 and prior)
If | Then |
|---|---|
The Undistributed Capital Gain Credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 2439 is missing, | Correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
Form 2439 shows a lesser amount, | Place an "X" to the left of the entry on Line 25e. |
Form 2439 shows a larger amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, | Correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. |
(9) Line 25f - Credit for Federal Tax on Fuels (Form 4136).
(Line 25g for 2023)
(Line 25f(2) for 2022 - 2018)
(Line 24f for 2017 and prior)
If there is a significant entry on Line 25f and Form 4136 is not present, correspond for the missing Form 4136. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
For Form 4136 processing instructions, see IRM 3.11.16.19, Form 4136- Credit for Federal Tax Paid on Fuels.
(10) Line 25g - Elective Payment Election
(Line 25h for 2023)
(11) Line 25i (Line 24h for 2017 and prior).
If the taxpayer has included backup withholding ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Line 25i (Line 24h for 2017 and prior) and Form 1099 is not attached, correspond using Letter 118C, Corporate Return Incomplete for Processing: Form 1120, Form 1120 Series, Form 1120-S. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(12) Line 25z - Other Payments and Credits.
(13) Line 27 (Line 26 for 2023 - 2018) (Line 25 for 2017 and prior) - Estimated Tax Penalty. If Form 1120-REIT, Line 27 (LIne 26 for 2023 - 2018) (Line 25 for 2017 and prior) is blank, and Form 2220 is attached with a significant entry on Page 2, Line 38, then edit the amount from Form 2220, Page 2, Line 38 to Form 1120-REIT, Line 27 (Line 26 for 2023 - 2018) (Line 25 for 2017 and prior). See IRM 3.11.16.11.6.6, Line 34 - Estimated Tax Penalty.
(14) Lines 28 and 29 - Tax Due/Overpayment.
(Lines 27 and 28 for 2023)
(Lines 26 and 27 for 2017 and prior)
Edit as positive only. If the taxpayer enters a negative amount, do not bracket. Edit the proper entry to Line 28 or 29 if both are blank. Do both of the following:
For 202401 and later, add Lines 24 and 27 minus Line 26.
For 202301 and later, add Lines 24 and 26 minus Line 25i.
For 2022 - 2018, add Lines 23 and 26 minus Line 25i.
For 2017 and prior, add Lines 23 and 25 minus Line 24h.
Edit the positive result on Line 27 (Line 26 for 2017 and prior) or the negative result (do not bracket) on Line 28 (Line 27 for 2017 and prior).
(15) If pre-computed interest or delinquency penalty or additional charge is evident, ensure that it has not been included in Line 28 (Line 27 for 2023 - 2018, Line 26 for 2017 and prior) or reduced Line 29 (Line 28 for 2023 - 2018, Line 27 for 2017 and prior).
If | Then |
|---|---|
The amount on Line 28 |
|
The amount on Line 29 |
|
(16) Line 29 (center) (Line 28 (center) for 2017 and prior) - Credit to Estimated Tax.
Tax and Payments Prior Year Instructions
(1) Line 24 - Reserved - For Tax Period 201712 through 202012, follow the instructions in a) and b).
If blank enter amount from Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts:
Edit CCC "J" and Action Code "460."
Reporting Tax Year | Form 965-B |
|---|---|
2017 | Part II, Column (k), Line 1 |
2018 | Part II, Column (k), Line 2 |
2019 | Part II, Column (k), Line 3 |
2020 | Part II, Column (k), Line 4 |
(2) Line 25h - Reserved - For Tax Period 201712 through 202012, follow the instructions in a) and b).
If blank enter amount from the following lines from Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, as follows:
Edit CCC "J" and Action Code "460."
Reporting Tax Year | Form 965-B |
|---|---|
2017 | Part II, Column (d), Line 1 |
2018 | Part II, Column (d), Line 2 |
2019 | Part II, Column (d), Line 3 |
2020 | Part II, Column (d), Line 4 |
(3) Line 25g - Reserved for future use.
Line 25g - Refundable credits from Form 8827 - Revisions 2019 and prior (Line 24g for 2017 and prior):
If | Then |
|---|---|
The amount on Line 25g (Line 24g for 2017 and prior) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8827 is not attached, | Correspond for Form 8827. |
Paid Preparer Information
(1) See IRM 3.11.16.11.8, Paid Preparer Checkbox Indicator and IRM 3.11.16.11.9, Paid Preparer Section.
Schedule J, Line 1 - Controlled Group Code
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Edit the right Controlled Group Code to the left of the box on Page 3, Schedule J, Line 1.
Note: The location of the Controlled Group Code on Form 1120-REIT moved to Schedule K, Line 13 on the 2024 form revision.
(3) Edit Controlled Group Code "4" when ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the tax return has any of the following criteria:
The box on Page 3, Schedule J, Line 1 is checked.
There is a sign on an attachment that the taxpayer is a member of a controlled group as defined in IRC 1561 or IRC 1563.
A statement or attachment stating a surtax apportionment plan.
(4) Edit Controlled Group Code "1" when ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the tax return has any of the following criteria:
The box on Page 3, Schedule J, Line 1 is checked.
There is indication that the taxpayer is a member of a controlled group as defined in IRC 1561 or 1563.
A statement or an attachment stating a surtax apportionment plan.
Note: If there is any doubt whether an attachment is a surtax apportionment plan refer the document to the lead tax examiner.
(5) If Controlled Group Code "4" or "1" is edited, process Schedule O (Form 1120) per IRM 3.11.16.11.48, Schedule O (Form 1120) - Consent Plan and Apportionment Schedule for a Controlled Group.
(6) If neither Controlled Group Code "4" or "1" was edited, delete Schedule O (Form 1120), if present.
Schedule J, Lines 2b through 2g - Taxes
(1) Line 1b - Tax from Part II.
(Line 2b for 2023 and prior)
(2) Line 1c - Tax from Part III.
Line 2c for 2023 and prior)
Note: If the taxpayer attaches a statement of "reasonable cause" with regards to relief from failure to meet the gross income tests (Sections 856(c)(2) and 856(c)(3)), leave these documents attached to the return and take no action.
(3) Line 1d - Tax from Part IV.
(Line 2d for 2023 and prior)
(4) Line 1e - Tax imposed under IRC 857.
(Line 2e for 2023 and prior)
(5) Line 1f - Tax imposed under IRC 856(c)(7).
(Line 2f for 2023 and prior)
Note: If the taxpayer attaches a statement of "reasonable cause" with regards to relief from failure to meet the asset tests (Sections 856(c)(7)) leave these documents attached to the return and take no action.
(6) Line 1g - Tax imposed under IRC 856(g)(5).
(Line 2g for 2023 and prior)
Note: If the taxpayer attaches a statement of "reasonable cause" with regards to relief from failure to meet the qualification tests other than the income or asset tests (Sections 856(g)(5)) leave these documents attached to the return and take no action.
(7) Line 2g - Alternative minimum tax (AMT) (Tax periods 201811 and prior only).
If the Tax Period is 201811 and prior and Schedule J, Line 2g (prior year revision) has an amount for AMT, edit the amount to the right margin of Schedule J, Line 2g.
If the Tax Period is 201811 and prior and Schedule J, Line 2g (prior year revision) is blank and Form 4626 is attached with an amount on Line 14, edit the amount from Line 14, Form 4626 to the right margin of Schedule J, Line 2g.
If the Tax Period is 201811 and prior and Schedule J, Line 2g (prior year revision) has a significant entry and Form 4626 is not attached, correspond for Form 4626. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(8) Line 1h - Section 1291 Tax from Form 8621.
(9) Line 1i - Additional Tax Under 197 (f).
(10) Line 1j - Tax Adjustment from Form 8978.
(11) Line 1k - Amount from Form 4255, Part I, Line 3 Column (q) - If Form 1120-REIT Schedule J, Line 1k has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 4255 is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(12) Line 1z - Other Chapter 1 tax.
(13) Line 2 - Income tax.
(Line 2h for 2023)
(Line 2g for 2022 - 2018)
(Line 2h for 2017 and prior)
If blank, add significant amounts from Lines 1a through 1z and enter on Line 2.
(Add Lines 2a through 2g and enter on Line 2h for 2023)
(Add Lines 2a through 2f and enter on Line 2h for 2022 - 2018)
(Add Lines 2a through 2g and enter on Line 2h for 2017 and prior) - If the taxpayer has included backup withholding ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Line 2 (Line 2h for 2023) (Line 2g for 2022 - 2018) (Line 2h for 2017 and prior) and Form 1099 is not attached, correspond using Letter 118C, Corporate Return Incomplete for Processing: Form 1120, Form 1120 Series, Form 1120-S. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Schedule J, Line 3a - Foreign Tax Credit, Form 1118
(1) If Line 3a has an entry, check for attached Form 1118 or similar statement:
If | Then |
|---|---|
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, | Edit CCC "P." |
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 1118 is missing, | Correspond. |
There is an entry on Line 3a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Edit Audit Code "2." |
Schedule J, Line 3b - Form 8834 Credit
(1) Line 3b - Form 8834, Qualified Electric Vehicle Credit. If Form 8834 is not attached ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Schedule J, Line 3c - General Business Credit
(1) If Schedule J, Line 2 (Line 2h for 2023) (Line 2g for 2022 - 2018) (Line 2h for 2017 and prior) shows no tax and there is a significant entry on Line 3c, "X" out the credits.
(2) If an amount is present or Form 3800 is attached, follow the instructions in IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit.
Schedule J, Line 6a - Schedule PH
(1) If Schedule J, Line 6a (Line 5 for 2023 and prior), Personal Holding Company Tax has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Schedule PH (Form 1120) is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Note: A significant entry on Schedule J, Line 5 would also require editing of an ABLM Code "001." See IRM 3.11.16.40.9, ABLM Code.
Schedule J, Lines 6b and 6c- Interest on Deferred Tax Liability
(1) Line 6b (Line 6 for 2023 and prior)- Interest on deferred tax liability for installment obligations under section 453A(c). If a significant amount is present on Line 6b or the 453A(c) checkbox is checked (for 2022 and prior), enter a 1 in the right margin of Line 6b. .
(2) Line 6c (Line 7 for 2023 and prior)- Interest on deferred tax liability for installment obligations under section 453(I)(3). If a significant amount is present on Line 6c or the 453A(I)(3) checkbox is checked (for 2022 and prior), enter a "1" in the right margin of Line 6c.
Schedule J, Lines 6d and 6e- Form 4255 and Form 8611
(1) Line 6d (Line 8 for 2023) - See IRM 3.11.16.11.24.1, Schedule J, Line 9a - Amount from Form 4255, Part I, Line 3 Column (r). If Form 4255 , Certain Credit Recapture, Excessive Payments, and Penalties, is not attached and the entry on Line 6d ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , then correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(2) Line 6e (Line 9 for 2023) - See IRM 3.11.16.11.24.2, Schedule J, Line 9b - Recapture of Low-Income Housing Credit (Form 8611).
Schedule K, Question 3 - Name of Common Parent
(1) If Schedule K, Question 3 meets one of the following conditions, a Name Control and EIN must be edited:
If | Then |
|---|---|
|
|
Question 3 is answered "No" or neither box is checked and corporation's name and EIN are not present, | No editing is required. |
Question 3 is answered "No" or neither box is checked and a corporation's name and/or EIN are the same as the return name and/or EIN, | No editing is required. |
Schedule K, Line 5b and Line 5c
(1) Edit Line 5b as follows:
If | Then |
|---|---|
The taxpayer has entered the name or abbreviation of a Foreign Country or U.S. Possession on Line 5b, | Edit the two letter "Country Code" to the left margin of Line 5b (right margin of Line 5b for 2017 and prior). See Acceptable Foreign Countries in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes, and Countries. Exception: Edit Country Code "OC" if the foreign country is not listed in Document 7475. |
If Schedule K, Question 5 is answered "Yes" and Line 5b does not have an entry, | Edit "Country Code OC" to the left margin of Line 5b (right margin of Line 5b for 2017 and prior). |
More than one Foreign Country or U.S. Possession is present, | Edit the "Country Code" of the first Foreign Country/U.S. Possession shown, to the left margin of Line 5b (right margin of Line 5b for 2017 and prior). |
Note: Use "UK" for England, Northern Ireland, Scotland, and Wales. Also, "Holland" is not an official country name, but is part of The Netherlands.
(2) Edit Line 5c as follows:
If | And | Then |
|---|---|---|
A number is present for Schedule K, Line 5c, |
| No editing is required. |
Schedule K, Line 5c is blank, | One or more Form 5472 is attached, | Edit the number of Form 5472(s) in the dotted line area of Line 5c. |
Form 5472 is attached, | Schedule K is not present, | Dummy a Schedule K and edit the number of Form 5472(s) to Schedule K, Line 5c. |
Schedule K, Question 12 (Qualified Opportunity Fund - Form 8996)
(1) If Form 1120-REIT, Schedule K, Question 12, "Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund" is answered "Yes," search attachments for Form 8996. If Form 8996 is attached with an amount in Part III, Line 15, edit the amount to Schedule K, Question 12.
Prior Year Revision | Line |
|---|---|
2020 and later | Part III, Line 15 |
2019 | Part III, Line 14 |
2018 and 2017 | Part III, Line 13 |
(2) See IRM 3.11.16.17, Form 8996 - Qualified Opportunity Fund for transcription lines.
(3) If Form 8996, Qualified Opportunity Fund, is attached, edit Return Processing Code (RPC) "6." See IRM 3.11.16.40.8, Return Processing Code (RPC), for more information.
Schedule N (Form 1120) - Foreign Operations of U.S. Corporations
(1) For processing instructions, see IRM 3.11.16.11.47, Schedule N (Form 1120 ) - Foreign Operations of U.S. Corporations.
Form 1120 - Schedule D
(1) The checkbox above Part I is the only transcription line on Schedule D when attached to Form 1120-REIT.
Form 8949 - Sales and Other Dispositions of Capital Assets
(1) For processing instructions, see IRM 3.11.16.16, Form 8949 - Sales and Other Dispositions of Capital Assets.
Form 8996 - Qualified Opportunity Fund
(1) For processing instructions, see IRM 3.11.16.17, Form 8996 - Qualified Opportunity Fund.
Schedule O (Form 1120) - Consent Plan and Apportionment Schedule for a Controlled Group
(1) The instructions in this subsection (paragraphs 2 through 4) only apply to Tax Period 201811 and prior. If a Schedule O is attached to a Form 1120-REIT for Tax Period 201812 and later, do the following:
If | Then |
|---|---|
Schedule O is in sequence order, | Line through Schedule O, Parts II and III. |
Schedule O is not in sequence order, | No action needed. |
(2) This subsection includes instructions for processing Schedule O (Form 1120).
(3) Schedule O (Form 1120) replaces the Controlled Group tax computation previously included on Schedule J, Lines 2a(1) through 2b(2) for 2005 and prior.
(4) If Controlled Group Code "1" or "4" is edited on a prior year return, dummy a Schedule O and edit significant positive amounts as follows:
Schedule J, Line 2a(1) to Schedule O, Part II, Line 1, Column (c).
Schedule J, Line 2a(2) to Schedule O, Part II, Line 1, Column (d).
Schedule J, Line 2a(3) to Schedule O, Part II, Line 1, Column (e).
Schedule J, Line 2b(1) to Schedule O, Part III, Line 1, Column (f).
Schedule J, Line 2b(2) to Schedule O, Part III, Line 1, Column (g).
Taxable Income Apportionment - Part II, Line 1
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Edit Schedule O, Part II, Line 1 as follows:
If | And | Then |
|---|---|---|
Schedule O is attached and the parent corporation's taxable income apportionment amounts are present in Part II, | The amounts are entered on Line 1, | "X" any negative entries on Line 1, Columns (c), (d), or (e). |
Schedule O is attached and the parent corporation's taxable income apportionment amounts are present in Part II, | The amounts are entered on a line other than Line 1, |
|
A Controlled Group Code was edited; there are no entries on any of Schedule O, Part II, Line 1, Columns (c), (d), and (e) or Schedule O is missing, Note: A taxpayer can be a member of a controlled group with an allocation of zero ("0") in each of the three taxable income brackets. In this case no entry will be necessary on Line 1, Part II, Columns (c), (d), and (e); | Taxable income brackets are found on an attachment, | Edit the positive taxable income bracket amounts to Schedule O, Line 1, Columns (c), (d), and (e). Dummy a Schedule O if needed. |
A Controlled Group Code was edited; there are no entries on any of Schedule O, Part II, Line 1, Columns (c), (d), and (e) or Schedule O is missing, Note: A taxpayer can be a member of a controlled group with an allocation of zero "(0)" in each of the three taxable income brackets. In this case no entry will be necessary on Line 1, Part II, Columns (c), (d), and (e); | No taxable income brackets are found, | Correspond for taxable income bracket amounts. Exception: Do not correspond if; there is no indication of an income tax liability on Form 1120-REIT, Schedule J, Line 2h, the taxable income on Form 1120-REIT, Page 1, Line 22 is zero ("0") or a negative amount, or Schedule O (Form 1120, Page 1, Box 3c or Box 4a is checked. |
No Controlled Group Code was edited, see IRM 3.11.16.11.11(4), Schedule J, Page 3 - Controlled Group Code / Personal Service Corporation Code / Tax Computation. |
| Delete Schedule O. |
(3) Entries can be shown on an attached allocation/apportionment schedule. Some examples of the title of these schedules include:
"apportionment plan"
"apportionment consent plan"
"consent to apportionment"
"controlled group tax apportionment plan"
"surtax apportionment plan"
"allocation schedule"
(4) The attachment can identify the amounts by the tax rate and/or taxable income bracket. Column (c) is the $50,000 taxable income bracket taxed at 15 percent, Column (d) is the $25,000 taxable income bracket taxed at 25 percent and Column (e) is the $9,925,000 taxable income bracket taxed at 34 percent.
(5) Any attachment labeled as "controlled group tax calculation statement" is not an apportionment plan and not used to edit tax bracket amounts on Schedule O.
Income Tax Apportionment - Part III, Line 1
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Edit Part III, Line 1 as follows:
If | And | Then |
|---|---|---|
The parent corporation's income tax apportionment amounts are present in Part III, | The amounts are entered on Line 1, | "X" any negative entries on Line 1, Columns (f) and (g). |
The parent corporation's income tax apportionment amounts are present in Part III, | The amounts are entered on a line other than Line 1, |
|
A Controlled Group was edited, | Part III, Line 1, Column (f) is blank, | Check attachments for possible entry (additional 5 percent tax):
|
A Controlled Group was edited, | Part III, Line 1, Column (g) is blank, | Check attachments for possible entry (additional 3 percent tax):
|
Form 4626 - Alternative Minimum Tax
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Taxpayers can include more than one Form 4626 with the return. If more than one Form 4626 is present, compute the totals and edit the right transcription lines.
(3) If Form 4626 is attached, perfect the following lines, as necessary:
Line 3 - Pre-Adjustment AMTI. If there is no entry on Line 3, but any of Lines 1 or Lines 2a through 2o have an entry, compute Line 3. Bracket if negative.
Line 4e - ACE Adjustment. Accept taxpayer's entry.
Line 6 - Alternative tax net operating loss deduction. Accept positive entry. "X" negative amount.
Line 11 - Alternative minimum tax foreign tax credit. Accept positive entry. "X" negative amount.
Form 4136 - Credit for Federal Tax Paid on Fuels
(1) For Form 4136 processing instruction, see IRM 3.11.16.19, Form 4136 - Credit for Federal Tax Paid on Fuels.
Form 8978 and Form 8978, Schedule A
(1) Form 8978 is valid for Tax Period ending 201712 and later.
(2) The "Source of review year adjustments" checkboxes on Form 8978, Partner’s Additional Reporting Year Tax and Form 8978, Schedule A., Partner’s Additional Reporting Year Tax (Schedule of Adjustments), are valid for Tax Period 202112 and later.
(3) Place Form 8978 in sequence order if any of the following apply:
The "Source of review year adjustments" checkboxes are checked on Form 8978.
The "Source of review year adjustments" checkboxes are checked on Form 8978, Schedule A.
Significant entries are present on Form 8978, Part I, Line 14, Part II, Line 16, or Part III, Line 18.
Note: Any information from the checkboxes on Form 8978, Schedule A will be transcribed on Form 8978.
(4) Edit the digit to the right margin of Form 8978, Part I row as follows:
If | And | Then |
|---|---|---|
Only Form 8978 is attached, | One or more of the boxes are checked, | Edit:
|
Form 8978 and Form 8978, Schedule A, are attached, | The boxes are marked the same on both forms, | Use the Form 8978 data and edit as shown above. |
Form 8978 and Form 8978, Schedule A, are attached, | The boxes are marked differently, | Use the Form 8978, Schedule A, data and edit as shown above. |
Only Form 8978, Schedule A, is attached, |
| No editing is required. |
Note: No editing is required on Lines 14, 16 and 18.
(5) Part I, Line 14 - Total Increase/decrease to reporting year tax.
(6) Part II, Line 16 - Total Penalties.
(7) Part III, Line 18 - Total Interest.
Form 965-B - Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts
(1) Form 965-B is valid for Tax Period ending 201712 and later.
(2) Place Form 965-B in sequence order if a significant amount (other than the pre-printed date) is present on any of the following lines:
Part I, Lines 1 through 5, col (a), Year of Section 965(a) Inclusion or Liability Assumed.
Part I, Lines 1 through 5, col (h), Net 965 Tax Liability Transferred (Out) Transferred (In), or Subsequent Adjustments, if any.
Part I, Lines 1 through 5, col (i), Tax Identification Number of buyer/transferee or Seller/transferor.
(3) Edit "1" in the right margin of Part I if more than five lines of entries are present.
(4) Form 1120-REIT has the following additional transcription for Form 965-B:
Part III, Line 1a, Column (b), Amount Elected to be Accounted for Over Time.
Part III, Line 1b, Column (b), Amount Elected to be Accounted for Over Time.
Part III, Line 2a, Column (b), Amount Elected to be Accounted for Over Time.
Part III, Line 2b, Column (b), Amount Elected to be Accounted for Over Time.
Part III, Line 3a, Column (b), Amount Elected to be Accounted for Over Time.
Part III, Line 3b, Column (b), Amount Elected to be Accounted for Over Time.
Form 8941 - Credit for Small Employer Health Insurance Premiums
(1) Place Form 8941 in sequence order if significant entries are present.
(2) For prior year revisions edit as follows:
If | And | Then |
|---|---|---|
2013 and 2012 revisions, | A significant amount is present on Line 1a or an EIN is present on Line 1b, |
|
Form 5884-B - New Hire Retention Credit
(1) Form 5884-B, New Hire Retention Credit is historical (2010 through 2011).
Form 3800 - General Business Credit
(1) Form 3800, General Business Credit, must be filed with corporate tax returns when a significant amount is present on Schedule J, Line 3c - General Business Credit.
(2) Place Form 3800 in sequence order if significant entries are present.
(3) If an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on any line of Form 3800, Part III, Column (g) (Column (j) for 2023 and prior) correspond for the supporting credit form. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1a, 1b, 1c, 1e, 1f, 1h, 1i, 1j, 1k, 1l, 1m, 1n, 1p, 1s, 1t, 1w, 1x, 1y, 1aa, 1bb, 1zz, 3, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (b) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2023 - If Form 3800, Part III, Line 1b, 1c, 1e, 1f, 1g, 1h, 1i, 1j, 1k, 1m, 1n, 1p, 1s, 1t, 1u, 1w, 1x, 1y, 1aa, 1bb, 1cc, 1dd, 1ee, 1ff, 1zz, 3, 4a, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (d) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1b, 1c, 1e, 1f, 1g, 1h, 1i, 1j, 1k, 1m, 1n, 1p, 1q, 1s, 1t, 1u, 1v, 1w, 1x, 1y, 1aa, 1bb, 1cc, 1dd, 1ee, 1ff, 1gg, 1zz, 3, 4a, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (c) has an EIN, do not correspond and continue to process the return.
(4) See IRM 3.11.16.11.21, Line 5c - General Business Credit and Exhibit 3.11.16-19, Form 3800 - Prior Year Conversion Chart.
Form 8997 - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments
(1) Form 8997 is valid for Tax Period ending 201901 and later.
(2) Place Form 8997 in sequence order if the form is attached and significant entries are present in any of Parts I, II, III or IV.
Note: Transcription is different for Form 1120-REIT than Form 1120.
(3) No editing is required except for the indicator in Part III.
(4) Part I - Total QOF Investment Holdings Due to Deferrals before Beginning of Tax Year (Row 1)
Line 2, Column e - Total amount
Line 2, Column f - Total amount
(5) Part II - Current Tax Year Capital Gains Deferred by Investing in QOF (Row 1)
Line 2, Column e - Total amount
Line 2, Column f - Total amount
(6) Part III - QOF Investments for Which Gain Is Included During Current Tax Year (Row 1)
Column a - EIN
Column b - Date
Column d - Special Gain Code
Column e - Amount of previously deferred short-term gain now included in taxable income
Column f - Amount of previously deferred long-term gain now included in taxable income
Part III Indicator - If more rows are present in Part III, edit a "1" in the right margin of Part III.
Line 2, Column e - Total amount
Line 2, Column f - Total amount
(7) Part IV - Total QOF Investment Holdings at Year End Due to Deferrals (Row 1)
Line 2, Column e - Total amount
Line 2, Column f - Total amount
(8) If Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, is attached, edit Return Processing Code (RPC) "9." See IRM 3.11.16.40.8, Return Processing Code (RPC), for more information.
Form 4255 - Certain Credit Recapture, Excessive Payments, and Penalties
(1) Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties, is valid for Tax Period ending 202401 and later.
(2) Place Form 4255 in sequence order if the form is attached and significant entries are present in Part I, Columns (s) or (t). See IRM 3.11.16.40.1, Sequence - Form 1120-REIT.
(3) If the Tax Period is 202312 and prior, do not sequence the Form 4255.
(4) The following lines will be transcribed on Form 4255.
Form 4255, Part I | Credit From | Column |
|---|---|---|
Line 1a | Form 7207 | (s) |
Line 1a | Form 7207 | (t) |
Line 1b | Form 3468, Part III | (s) |
Line 1b | Form 3468, Part III | (t) |
Line 1c | Form 7210 | (s) |
Line 1c | Form 7210 | (t) |
Line 1d | Form 3468, Part IV | (s) |
Line 1d | Form 3468, Part IV | (t) |
Line 1e Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7218 | (s) |
Line 1e Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7218 | (t) |
Line 1f Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7213, Part II | (s) |
Line 1f Caution: If the Tax Period is 202312 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7213, Part II | (t) |
Line 1g Caution: If the Tax Period is 20212 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 3468, Part V | (s) |
Line 1g Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 3468, Part V | (t) |
Line 1h | Form 8936, Part V | (s) |
Line 1h | Form 8936, Part V | (t) |
Line 1i Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7211 | (s) |
Line 1i Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7211 | (t) |
Line 1j | Form 3468, Part VI | (s) |
Line 1j | Form 3468, Part VI | (t) |
Line 1k | Form 8835 | (s) |
Line 1k | Form 8835 | (t) |
Line 2a | Form 8933 | (s) |
Line 2a | Form 8933 | (t) |
Line 2b | Form 8911, Part I | (s) |
Line 2b | Form 8911, Part I | (t) |
(5) If there is an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Form 1120-REIT Schedule J, Line 1k, then correspond for a Form 4255 if missing. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Return Processing - Form 1120-RIC
(1) This subsection provides instructions for processing of Form 1120-RIC, Regulated Investment Companies.
(2) Form 1120-RIC can be filed on a calendar or fiscal year basis.
(3) Action Codes apply to Form 1120-RIC. See IRM 3.11.16.3.1, Action Codes.
(4) To convert prior year tax returns. See Exhibit 3.11.16-16, Form 1120-RIC - Prior Year Conversion Chart.
Sequence - Form 1120-RIC
(1) Document Perfection is responsible for arranging Form 1120-RIC in the following order when transcription line entries are present:
Pages 1, 2, 3, and 4
Schedule N (Form 1120)
Form 1120, Schedule D
Form 8949
Form 8996
Schedule O (Form 1120)(Tax periods 201811 and prior only)
Form 4626 (Tax periods 201811 and prior only)
Form 4136
Form 8978
Form 965-B
Form 8941
Form 3800
Form 8997
Form 4255 (Tax period 2024 and later)
(2) It is not necessary to sequence the forms or schedules listed above if there are no transcription line entries.
(3) It is not necessary to sequence an Amended return. See IRM 3.11.16.3.9, Amended Returns, for more information.”
EIN
(1) See IRM 3.11.16.6.2, Entity Perfection - Employer Identification Number (EIN).
Name Control/"In-Care-Of" Name
(1) See IRM 3.11.16.6.3, Entity Perfection - Name Control and IRM 3.11.16.6.4, Entity Perfection - "In-Care-Of" Name.
Address
(1) See IRM 3.11.16.6.5, Entity Perfection - Domestic Addresses and IRM 3.11.16.6.6, Entity Perfection - Foreign Address.
Tax Period
(1) Edit Tax Period ending (except current calendar year) in YYMM format to the right of the title on Page 1 of the return. See IRM 3.11.16.7.1, Tax Period - Ending.
(2) Edit the Tax Period Beginning to the left of Form 1120-RIC title area in MMDDYY format on an Initial, Final or Short Period return. See IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
(3) See IRM 3.11.16.7.3, Early Filed Returns - Full Year and Short Period through IRM 3.11.16.7.9, Short Period Returns - With Prepaid Credits for editing Short Period returns.
Received Date
(1) Enter in MMDDYY format.
(2) Edit the received date in the dotted portion of Lines 9 through 22. See IRM 3.11.16.8, Received Date.
Computer Condition Codes
(1) Valid codes for Form 1120-RIC are D, E, F, G, J, L, M, O, P, R, S, T, W, X, Y, 3, 7, 8, and 9.
(2) Edit to the dotted portion of Lines 1 through 8. See IRM 3.11.16.9.1, Computer Condition Codes.
Return Processing Code (RPC)
(1) Return Processing Code (RPC) is an alpha or numeric character used to alert the computer to a special condition or computation.
(2) RPCs are edited on Page 1, in the right margin next to Line 1 of Form 1120-RIC.
(3) Refer to the table below for an explanation of when to edit each RPC.
RPC | Explanation |
|---|---|
E | Form 8865, Schedule G, Statement of Application for the Gain Deferral Method Under Section 721(c), is attached. |
F | Form 8865, Schedule H, Acceleration Events and Exceptions Reporting Relating to Gain Deferral Method Under Section 721(c), is attached. |
G | Form 5471, Schedule G-1, Cost Sharing Arrangement, is attached. |
J | For Tax Period 202201 - 202212, taxpayer writes IRA22 DPE on Form 3800, Form 1120-RIC Line 29f or on an attachment.
|
K | For Tax Period 202201 - 202212, taxpayer writes IRA22TRE on Form 3800, on an attachment or at the top of the return.
|
L | Form 7204, Consent to Extend the Time to Assess Tax Related to Contested Foreign Income Taxes - Provisional Foreign Tax Credit Agreement is attached. |
M | Form 7205, Energy Efficient Commercial Buildings Deduction is attached. |
2 | Form 8992, U.S Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI), is attached. |
4 | Form 8994, Employer Credit for Paid Family and Medical Leave, is attached. |
6 | Form 8996, Qualified Opportunity Fund, is attached. |
7 | Form 8990, Limitation on Business Interest Expense IRC 163(j), is attached. |
9 | Form 8997, Initial and Annual Statement of Opportunity Fund (QOF) Investments, is attached. |
ABLM Code
(1) Edit "001" to the left of the line between Box A and Box B when:
Box F, Page 1 is checked.
Schedule PH (Form 1120) is attached.
Page 3, Schedule J, Line 6 (2024 revision) has an entry.
Page 3, Schedule J, Line 5 (2023 and prior) has an entry.
Initial Return Code
(1) Edit in the margin to the right of Box D (determined from Box B).
(2) See IRM 3.11.16.9.4, Initial Return Code.
Additional Form 1120-RIC Perfection
(1) This subsection addresses the editing of additional Form 1120-RIC information. See IRM 3.11.16.10, Additional Return Perfection.
Form 8844 Indicator
(1) Edit "1 - 1" in the left margin of Form 1120-RIC near Line 12.
See IRM 3.11.16.11.21.1, Form 8844, Empowerment Zone Employment Credit.,
Audit Codes
(1) Edit a "2 -" followed by the right Audit Code(s) in the left margin near Line 12 (e.g., "2 - 1").
(2) The valid Audit Codes are 1, 2, 3, 4, C and W.
(3) For specific Audit Code requirements, follow the instructions in IRM 3.11.16.10.1, Audit Codes.
Penalty and Interest
(1) Enter a Code "4 - 1" in the left margin near Line 12 when precomputed delinquency penalty and/or interest is shown on a return with a received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
(2) This code is valid only within the unextended ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ some other situation, such as an estimated Tax Penalty, do not Code "4 - 1" and do not insert Condition Code "R." If only interest is shown, edit CCC "R."
Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Reserve Code
(1) The Reserve Code is "4."
(2) Edit "5 - 4" in the left margin near Line 12 if Form 2220 is attached and Part II, Box 8 is checked for Large Corporation.
Installment Sale Indicator (Form 6252)
(1) Edit "6 -" followed by the right Installment Sale Indicator code in the left margin near Line 12 when Form 6252, Installment Sale Income, is present (e.g., "6 - 1"). See IRM 3.11.16.10.4, Installment Sale Indicator (Form 6252).
Total Assets - Box D
(1) Compare the amount in Box D to the amount on Schedule L, Line 13, Column (d).
(2) If the amount to be edited will change, then resolve the difference in favor of the Schedule L amount and correct Box D. Bracket if negative.
Exception: The return is a "Final" return, resolve the difference in favor of the Box D amount.
(3) If Schedule L, Line 13, Column (d) is blank, compute Lines 1 through 12, Columns (c) and (d) if present and compare with the amount in Box D.
(4) If Box D is blank, enter Total Assets from Schedule L, Line 13, Column (d). Bracket if negative.
(5) No editing is required if Schedule L is not present or there is no significant entry is on Schedule L, Line 13, Column (d).
Page 1 - Gross Income Items, Lines 1 through 8
(1) Line 1 - Dividends.
(2) Line 2 - Interest.
(3) Line 3 - Net Foreign Currency Gains.
(4) Line 4 - Payments with respect to securities loans.
(5) Line 5 - Excess of net short-term capital gain over net long-term capital loss. Positive only. If Line 5 is negative, see IRM 3.11.16.11.4.7, Line 8 - Capital Gain.
(6) Line 6 - Net Gain or Loss from Form 4797. If an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 4797 is not attached and the taxpayer has not attached Form 4684, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(7) Line 7 - Other Income: If the taxpayer inserts Other Income items on Line 7 instead of 1 through 6:
Add the items and edit the total to Line 7. Bracket if negative.
"X" the "Other Income" items from Lines 1 through 6.
(8) Line 8 - Total Income:
If blank, add Lines 1 through 7 and edit the total to Line 8. Bracket if negative.
If the only income on the return is "Total Income" on Line 8 and no detailed schedule is found showing allocation of income, edit the Line 8 amount on Line 7.
Page 1 - Deduction Items, Lines 9 through 25
(1) Line 9 - Compensation of Officers.
(2) Line 10 - Salaries and Wages (less employment credits).
(3) Line 11 - Rents.
(4) Line 12 - Taxes and licenses.
(5) Line 13 - Interest.
(6) Line 14 - Depreciation.
(7) Line 15 - Advertising.
(8) Line 16 - Registration Fees.
(9) Line 17 - Insurance.
(10) Line 18 - Accounting and Legal Services.
(11) Line 19 - Management and Investment Advisory Fees.
(12) Line 20 - Transfer Agency, Shareholders Servicing and Custodian Fees.
(13) Line 21 - Report to Shareholders.
(14) Line 22 - Other Deductions. If the taxpayer inserts "Other Deduction" items on Lines 9 through 21:
Add the items and edit the total to Line 22. Bracket if negative.
"X" the "Other Deduction" items from Lines 9 through 21.
(15) Line 23 - Total Deductions:
If blank, add Lines 9 through 22 and edit the total on Line 23. Bracket if negative.
If the only deduction on the return is "Total Deductions" on Line 23 and no detailed schedule is found showing allocation of deductions, edit the Line 23 amount on Line 22. Bracket if negative.
(16) Line 25a - Deduction for Dividends Paid. If blank, edit the amount from Page 2, Schedule A, Line 8a for 2011 and prior change line 25 to 25a.
(Line 25 for 2011 and prior).
(17) Line 25b - Section 851(d)(2) and section 851(i) deductions. If blank, edit the total of Schedule J, Lines 2c and 2d. If blank for 2022 and prior, edit the amount from Page 2, Schedule J, line 2c.
Paid Preparer Information
(1) See IRM 3.11.16.11.8, Paid Preparer Checkbox Indicator and IRM 3.11.16.11.9, Paid Preparer Section.
Page 2 - Tax and Payments, Lines 27 through 33
(1) Line 27 - Total Tax.
If blank enter the amount from Schedule J, Line 9 (Line 10 for 2023) (Line 8 for 2021 and 2022) (Line 7 for 2020 and prior).
If pre-computed interest or delinquency penalty or an additional charge is evident, ensure that it has not been included in Line 27.
"X" the Line 27 amount.
Delete the interest, penalty, or additional charge from the total.
Edit the correct Total Tax to the left of the original entry.
If | Then |
|---|---|
The amount on Line 27 has pre-computed interest or penalty or additional charge, |
(2) Line 28a - Preceding Year’s Overpayment Credited to the Current Year.
(3) Line 28b - Current Year’s Estimated Tax Payments.
(4) Line 28c - Current Year’s Refund Applied for on Form 4466. If there is a significant entry on Line 28c, refer to CCC "O" procedures. See IRM 3.11.16.9.1.15, CCC "O" - Module Freeze.
(Line 29c for 2022 - 2018) (Line 28c for 2017 and prior)
(5) Line 28d - ES Credits (Tax Period 2023 and prior). If blank, add Lines 28a and 28b, subtract Line 28c and enter on Line 28d.
(Line 29d for 2022 - 2018) (Line 28d for 2017 and prior)
(6) Line 28d - Tax Deposited with Form 7004.
(Line 28d for 2023) (Line 29e for 2022 - 2018) (Line 28e for 2017 and prior)
(7) Line 29f (Tax Period 202201 - 202212) - If a significant amount is present and "IRA22 DPE" is notated, edit RPC "J."
(8) Line 28e - Credit for Tax Paid on Undistributed Capital Gains, Form 2439.
(Line 28f for 2023) (Line 29f for 2022 - 2018) (Line 28f for 2017 and prior)
If | Then |
|---|---|
The Undistributed Capital Gain Credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 2439 is missing, | Correspond. |
Form 2439 shows a lesser amount, | Place an "X" to the left of the entry on Line 28f . Edit the lesser amount to the left of the "X." |
Form 2439 shows a larger amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, | Correspond. |
(9) Line 28f - Credit for Federal Tax Paid on Fuels (Form 4136).
(Line 28g for 2023) (Line 29g for 2022-2018) (Line 28g for 2017 and prior)
If there is a significant entry on Line 28f and Form 4136 is not present, correspond for the missing Form 4136. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
For Form 4136 processing instructions, see IRM 3.11.16.19, Form 4136 - Credit for Federal Tax Paid on Fuels.
(10) Line 28g - Elective Payment Election.
(Line 28h for 2023)
(11) Line 28z - Other Credits and Payments.
(12) Line 29 Total Payments and Credits
(Line 29j for 2022 - 2018) (Line 28i for 2017 and prior).
If the taxpayer has included backup withholding ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Line 29 and Form 1099 is not attached, correspond using Letter 118C, Corporate Return Incomplete for Processing: Form 1120, Form 1120 Series, Form 1120-S. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(13) Line 30 (Line 29 for 2017 and prior) - Estimated Tax Penalty. If Form 1120-RIC, Line 30 (Line 29 for 2017 and prior) is blank, and Form 2220 is attached with a significant entry on Page 2, Line 38, then edit the amount from Form 2220, Page 2, Line 38 to Form 1120-RIC , Line 30 (Line 29 for 2017-2008). See IRM 3.11.16.11.6.6, Line 34 - Estimated Tax Penalty.
(14) Line 31 (Line 30 for 2017 and prior) and 32 (Line 31 for 2017 and prior) - Amount owed/Overpayment. Edit as positive only. If the taxpayer enters a negative amount, do not bracket. Edit the proper entry to Line 31 or 32 (Line 30 or 31 for 2017 and prior) if both are blank. Do both of the following:
For 202301 and later, add Lines 27 and 30 minus Line 29.
For 2022 - 2018, add Lines 27, 28 and 30 minus 29j.
For 2017 and prior, add Lines 27 and 29 minus 28i.
Edit the positive result on Line 31 (Line 30 for 2017 and prior) or the negative result (do not bracket) on Line 32(Line 31 for 2017 and prior).
(15) If pre-computed interest or delinquency penalty or additional charge is evident, ensure that it has not been included in Line 31 (Line 30 for 2017 and prior) or reduced Line 32 (Line 31 for 2017 and prior).
If | Then |
|---|---|
The amount on Line 31 (Line 30 for 2017 and prior) has pre-computed interest or penalty or additional charge, |
|
The amount on Line 32 (Line 31 for 2017 and prior) is reduced by pre-computed interest or penalty or additional charge, |
|
(16) Line 33 (Line 32 for 2017 and prior) - Estimated Tax Credit.
Tax and Payments - Prior Year Instructions
(1) Line 28 - Reserved - For Tax Period 201712 through 202012, follow the instructions in a) and b).
If blank enter amount from Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, as follows:
Edit CCC "J" and Action Code "460."
Reporting Tax Year | Form 965-B |
|---|---|
2017 | Part II, Column (k), Line 1 |
2018 | Part II, Column (k), Line 2 |
2019 | Part II, Column (k), Line 3 |
2020 | Part II, Column (k), Line 4 |
(2) Line 29h - Reserved for future use.
Line 29h - Refundable credits from Form 8827 - Revisions 2019 and prior (Line 28h for 2017 and prior):
If | Then |
|---|---|
The amount on Line 29h (Line 28h for 2017 and prior)≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8827 is not attached, | Correspond for Form 8827. |
(3) Line 29i - Reserved - For Tax Period 201712 through 202012, follow the instructions in a) and b).
If blank enter amount from Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, as follows:
Edit CCC "J" and Action Code "460."
Reporting Tax Year | Form 965-B |
|---|---|
2017 | Part II, Column (d), Line 1 |
2018 | Part II, Column (d), Line 2 |
2019 | Part II, Column (d), Line 3 |
2020 | Part II, Column (d), Line 4 |
Schedule J, Line 1 - Controlled Group Code
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Edit the right Controlled Group Code on the dotted line portion of Page 2, Schedule J, Line 1.
Note: The location of the Controlled Group Code on Form 1120-RIC moved to Schedule K, Line 16 on the 2024 form revision.
(3) Edit Controlled Group Code "4" when ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the tax return has any of the following criteria:
The box on Page 2, Schedule J, Line 1 is checked.
There is indication that the taxpayer is a member of a controlled group as defined in IRC 1561 or IRC 1563.
A statement or attachment stating a surtax apportionment plan.
(4) Edit Controlled Group Code "1" when ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the tax return has any of the following criteria:
The box on Page 2, Schedule J, Line 1 is checked.
There is indication that the taxpayer is a member of a controlled group as defined in IRC 1561 or IRC 1563.
A statement or an attachment stating a surtax apportionment plan.
Note: If there is any doubt whether an attachment is a surtax apportionment plan refer the document to the lead tax examiner.
(5) If Controlled Group Code "4" or "1" is edited, process Schedule O (Form 1120) per IRM 3.11.16.41.34, Schedule O (Form 1120) - Consent Plan and Apportionment Schedule for a Controlled Group.
(6) If neither Controlled Group Code "4" or "1" was edited, delete Schedule O (Form 1120) if significant entries are present.
Schedule J - Lines 1b through 1z
(1) Line 1b, Tax on Undistributed Net Capital Gain - If Line 1b is blank and Part II, Line 4 has an entry, edit the amount from Part II, Line 4 to Line 1b.
(Line 2b for 2023 and prior)
(2) Line 1c, Tax Imposed Under Sections 851(d)(2) and 851(i) - Accept the taxpayer’s figure.
(Line 2c for 2023 and prior)
(3) Line 1d - Tax Imposed Under Section 851(i).
(Line 2d for 2023 and prior)
(4) Line 2d- Alternative Minimum Tax (Tax Period 201811 and prior only).
If the Tax Period is 201811 and prior and Schedule J, Line 2d (prior year revision) has an amount for AMT, edit the amount to the right margin of Schedule J, Line 2d.
If the Tax Period is 201811 and prior and Schedule J, Line 2d (prior year revision) is blank and Form 4626 is attached with an amount on Line 14, edit the amount to the right margin of Schedule J, Line 2d.
If the Tax Period is 201811 and prior and Schedule J, Line 2d (prior year revision) has a significant entry and Form 4626 is not attached, correspond for Form 4626. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(5) Line 1e - Section 1291 from Form 8621. Accept the taxpayer’s figure.
(6) Line 1f - Additional Tax Under Section 197(f). Accept the taxpayer’s figure.
(7) Line 1g - Amount from Form 4255, Part I, Line 3, Column (q) - If Form 1120-RIC, Schedule J, Line 1g has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 4255 is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(8) Line 1z - Other Chapter 1 Tax. Accept taxpayer’s figure.
(9) Line 2e (Line 2d for 2018 through 2022) - Income tax. If blank, add the significant amounts from Lines 2a through 2d (Line 2c for 2018 through 2022).
Schedule J, Line 3a - Form 1118
(1) If Line 3a has an entry, check for attached Form 1118 or similar statement:
If | Then |
|---|---|
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Edit CCC "P." |
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 1118 is missing, | Correspond. |
There is an entry on Line 3a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Edit Audit Code "2." |
Schedule J, Line 3b - Form 8834, Qualified Electric Vehicle Credit
(1) Line 3b - Form 8834, Qualified Electric Vehicle Credit. If Form 8834 is not attached ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Schedule J, Line 3c - General Business Credit
(1) If Schedule J, Line 2e shows no tax and there is a significant entry on Line 3c, "X" the credits.
(Line 2d for 2022 - 2018) (Line 2e for 2012-2017).
(2) If an amount is present or Form 3800 is attached, follow the instructions in IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit.
Schedule J, Line 3d - Other Credits
(1) If Line 3d, has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8827 is shown and not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Schedule J, Line 6a - Schedule PH
(1) If Schedule J, Line 6a (Line 5 for 2023), Personal Holding Co. Tax has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Schedule 1120-PH is not attached, correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Note: A significant entry on Schedule J, Line 6a would also require editing an ABLM Code "001." See IRM 3.11.16.41.9, ABLM Code.
Schedule J. Line 6b and 6c - Interest on Deferred Tax Liability
(1) Line 6b (Line 6 for 2023 and prior) - Interest on deferred tax liability for installment obligations under section 453A(c). If a significant amount is present on Line 6b (Line 6 for 2023 and prior) or the 453A(c) checkbox is checked (for 2022 and prior), enter a "1" in the right margin of Line 6b.
(2) Line 6c (Line 7 for 2023 and prior) - Interest on deferred tax liability for installment obligations under section 453(I)(3). If a significant amount is present on Line 6b (Line 7 for 2023 and prior) or the 453(I)(3) checkbox is checked (for 2022 and prior), enter a "1" in the right margin of Line 6c.
Schedule J, Line 6d - Form 4255
(1) Line 6d (Line 8 for 2023), Amount from Form 4255, Part I, Line 3, Column (r), is entered on , Schedule J, Line 6d and reported from Form 4255.
If Schedule J, Line 6d, has a significant amount or Form 4255 is attached and:
If | Then |
|---|---|
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 4255 is not attached, | Correspond. |
Form 4255 is attached and the tax is not entered on the return, | Edit the amount from Line 3, Column (r), Non-Chapter 1 Tax Total, Form 4255 to Schedule J, Line 6d. |
It appears the tax computed on Form 4255 has been offset by current year investment credit, | Recompute the amounts reported on Schedule J, Line 3c and/or Line 6d. Note: Current year investment credit cannot be used to offset Certain Credit Recapture, Excessive Payments, and Penalties. Enter corrected amounts on Schedule J, Line 6d. |
Line 6z - Other Taxes
(1) Line 6z (Line 9 for 2023), Other, is entered on Schedule J, Line 6z. Accept the taxpayer’s figure.
(Line 9 for 2023) (Line 7 for 2022 - 2021, (Line 6 for 2020 - 2014)
If processing a 2022 - 2014 return and the taxpayer checked the box for "Form 4255", the form is not attached, and the entry on Line is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, then correspond. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Schedule J, Line 8b - Deferred Tax on the RIC’s Share of Undistributed Earnings of a Qualified Electing Fund
(1) Line 8b, Deferred Tax on the RIC’s Share of Undistributed Earnings of a Qualified Electing Fund, is entered on Schedule J, Line 8b. Accept the taxpayer’s figure.
Schedule K, Question 3 - Subsidiary Member of a Controlled Group
(1) If Schedule K, Question 3 meets one of the following conditions, a Name Control and EIN must be edited:
If | Then |
|---|---|
|
|
Question 3 is answered "No" or neither box is checked and corporation's name and EIN are not present, | No editing is required. |
Question 3 is answered "No" or neither box is checked and corporation's name and/or EIN are the same as the return name and/or EIN, | No editing is required. |
(2) No editing is required unless one of the conditions in (1) above is present.
Schedule K, Line 5(b)(2)
(1) Edit Line 5b(2), Owner's Country as follows:
If | Then |
|---|---|
The taxpayer has entered the name or abbreviation of a Foreign Country or U.S. Possession on Line 5b(2), | Edit the two letter "Country Code" to the left margin of Line 5b(2). See Acceptable Foreign Countries in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes, and Countries. Exception: Edit Country Code "OC" if the foreign country is not listed in Document 7475. |
If Schedule K, Question 5b is answered "Yes" and Line 5b(2) does not have an entry, | Edit "Country Code" "OC" to the left margin of Line 5b(2). |
More than one Foreign Country or U.S. Possession is present, | Edit the "Country Code" of the first Foreign Country/U.S. Possession shown, to the left margin of Line 5b(2). |
Note: Use "UK" for England, Northern Ireland, Scotland, and Wales. Also, "Holland" is not an official country name, but is part of The Netherlands.
(2) Edit Line 5(b)(2), Number of Forms 5472 as follows:
If | And | Then |
|---|---|---|
A number is present for Schedule K, Line 5(b)(2), |
| No editing is required. |
Schedule K, Line 5(b)(2) is blank, | One or more Form 5472 is attached, | Edit the number of Form 5472(s) in the dotted line area of Line 5(b)(2). |
Form 5472 is attached, | Schedule K is not present, | Dummy a Schedule K and edit the number of Form 5472(s) to Schedule K, Line 5(b)(2). |
Schedule N (Form 1120) - Foreign Operations of U.S. Corporations
(1) For processing instructions, see IRM 3.11.16.11.47, Schedule N (Form 1120) - Foreign Operations of U.S. Corporations.
Form 1120, Schedule D
(1) The checkbox above Part I is the only transcription line on Schedule D when attached to Form 1120-RIC.
Form 8949 - Sales and Other Dispositions of Capital Assets
(1) For processing instructions, see IRM 3.11.16.16, Form 8949 - Sales and Other Dispositions of Capital Assets.
Form 8996 - Reserved for Future Use
(1) No action is needed for Form 8996 on Form 1120-RIC.
Schedule O (Form 1120) - Consent Plan and Apportionment Schedule for a Controlled Group
(1) The instructions in this subsection (paragraphs 2 through 4) only apply to Tax Period 201811 and prior. If a Schedule O is attached to a Form 1120-RIC for Tax Period 201812 and later, do the following:
If | Then |
|---|---|
Schedule O is in sequence order, | Line through Schedule O, Parts II and III. |
Schedule O is not in sequence order, | No action needed. |
(2) This subsection includes instructions for processing Schedule O (Form 1120).
(3) Schedule O (Form 1120) replaces the Controlled Group tax computation previously included on Schedule J, Lines 2a(1) through 2b(2) for 2005 and prior.
(4) If Controlled Group Code "1" or "4" is edited on a prior year return, dummy a Schedule O and edit significant positive amounts as follows:
Schedule J, Line 2a(1) to Schedule O, Part II, Line 1, Column (c).
Schedule J, Line 2a(2) to Schedule O, Part II, Line 1, Column (d).
Schedule J, Line 2a(3) to Schedule O, Part II, Line 1, Column (e).
Schedule J, Line 2b(1) to Schedule O, Part III, Line 1, Column (f).
Schedule J, Line 2b(2) to Schedule O, Part III, Line 1, Column (g).
Taxable Income Apportionment - Part II, Line 1
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Edit Schedule O, Part II, Line 1 as follows:
If | And | Then |
|---|---|---|
Schedule O is attached and the parent corporation's taxable income apportionment amounts are present in Part II, | The amounts are entered on Line 1, | "X" any negative entries on Line 1, Columns (c), (d), or (e). |
Schedule O is attached and the parent corporation's taxable income apportionment amounts are present in Part II, | The amounts are entered on a line other than Line 1, |
|
A Controlled Group Code was edited; there are no entries on any of Schedule O, Part II, Line 1, Columns (c), (d), and (e) or Schedule O is missing, Note: A taxpayer can be a member of a controlled group with an allocation of zero ("0") in each of the three taxable income brackets. In this case no entry will be necessary on Line 1, Part II, Columns (c), (d), and (e); | Taxable income brackets are found on an attachment, | Edit the positive taxable income bracket amounts to Schedule O, Line 1, Columns (c), (d), and (e). Dummy a Schedule O if needed. |
A Controlled Group Code was edited; there are no entries on any of Schedule O, Part II, Line 1, Columns (c), (d), and (e) or Schedule O is missing, Note: A taxpayer can be a member of a controlled group with an allocation of zero ("0") in each of the three taxable income brackets. In this case no entry will be necessary on Line 1, Part II, Columns (c), (d), and (e); | No taxable income brackets are found, | Correspond for taxable income bracket amounts. Exception: Do not correspond if; there is no indication of an income tax liability on Form 1120-RIC, Schedule J, Line 2e, the taxable income on Form 1120-RIC, Page 1, Line 26 is zero ("0") or a negative amount, or Schedule O (Form 1120), Page 1, Box 3c or Box 4a is checked. |
No Controlled Group Code was edited, see IRM 3.11.16.11.11(4), Schedule J, Page 3 - Controlled Group Code / Personal Service Corporation Code / Tax Computation, |
| Delete Schedule O. |
(3) Entries can be shown on an attached allocation/apportionment schedule. Some examples of the title of these schedules include:
"apportionment plan"
"apportionment consent plan"
"consent to apportionment"
"controlled group tax apportionment plan"
"surtax apportionment plan"
"allocation schedule"
(4) The attachment can identify the amounts by the tax rate and/or taxable income bracket. Column (c) is the $50,000 taxable income bracket taxed at 15 percent, Column (d) is the $25,000 taxable income bracket taxed at 25 percent and Column (e) is the $9,925,000 taxable income bracket taxed at 34 percent.
(5) Any attachment labeled as "controlled group tax calculation statement" is not an apportionment plan and not used to edit tax bracket amounts on Schedule O.
Income Tax Apportionment - Part III, Line 1
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Edit Part III, Line 1 as follows:
If | And | Then |
|---|---|---|
The parent corporation's income tax apportionment amounts are present in Part III, | The amounts are entered on Line 1, | "X" any negative entries on Line 1, Columns (f) and (g). |
The parent corporation's income tax apportionment amounts are present in Part III, | The amounts are entered on a line other than Line 1, |
|
A Controlled Group was edited, | Part III, Line 1, Column (f) is blank, | Check attachments for possible entry (additional 5 percent tax):
|
A Controlled Group was edited, | Part III, Line 1, Column (g) is blank, | Check attachments for possible entry (additional 3 percent tax):
|
Form 4626 - Alternative Minimum Tax
(1) The instructions in this subsection only apply to Tax Period 201811 and prior.
(2) Taxpayers can include more than one Form 4626 with the return. If more than one Form 4626 is present, compute the totals and edit the right transcription lines.
(3) If Form 4626 is attached, perfect the following lines:
Line 3 - Pre-Adjustment AMTI. If there is no entry on Line 3, but any of Lines 1 or Lines 2A through 2o have an entry, compute Line 3. Bracket if negative.
Line 4e - ACE Adjustment. Accept taxpayer's entry.
Line 6 - Alternative tax net operating loss deduction. Accept positive entry. "X" if negative.
Line 11 - Alternative minimum tax foreign tax credit. Accept positive entry. "X" if negative.
Form 4136 - Credit for Federal Tax Paid on Fuels
(1) For Form 4136 processing instructions, see IRM 3.11.16.19, Form 4136 - Credit for Federal Tax Paid on Fuels.
Form 8978 and Form 8978, Schedule A
(1) Form 8978 is valid for Tax Period ending 201712 and later.
(2) The "Source of review ear adjustments" checkboxes on Form 8978, Partner’s Additional Reporting Year Tax and Form 8978, Schedule A, Partner’s Additional Reporting Year Tax (Schedule of Adjustments), are valid for Tax Period 202112 and later.
(3) Place Form 8978 in sequence order if any of the following apply:
The "Source of review year adjustments" checkboxes are checked on Form 8978.
The "Source of review year adjustments" checkboxes are checked on Form 8978, Schedule A.
Significant entries are present on Form 8978, Part I, Line 14, Part II, Line 16, or Part III, Line 18.
Note: Any information from the checkboxes on Form 8978, Schedule A will be transcribed on Form 8978.
(4) Edit the digit to the right margin of Form 8978, Part I row as follows:
If | And | Then |
|---|---|---|
Only Form 8978 is attached, | One or more of the boxes are checked. | Edit:
|
Form 8978 and Form 8978, Schedule A, are attached, | The boxes are marked the same on both forms, | Use the Form 8978 data and edit as shown above. |
Form 8978 and Form 8978, Schedule A, are attached, | The boxes are marked differently, | Use the Form 8978, Schedule A, data and edit as shown above. |
Only Form 8978, Schedule A, is attached, |
| No editing is required. |
Note: No editing is required on Lines 14, 16 and 18.
(5) Part I, Line 14 - Total Increase/decrease to reporting year tax.
(6) Part II, Line 16 - Total Penalties.
(7) Part III, Line 18 - Total Interest.
Form 965-B - Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts
(1) Form 965-B is valid for Tax Period ending 201712 and later.
(2) Place Form 965-B in sequence order if a significant amount is present on any of the following lines:
Part I, Lines 1 through 5, col (a), Year of Section 965(a) Inclusion or Liability Assumed.
Part I, Lines 1 through 5, col (h), Net 965 Tax Liability Transferred (Out) Transferred (In), or Subsequent Adjustments, if any.
Part I, Lines 1 through 5, col (i), Tax Identification Number of buyer/transferee or Seller/transferor.
(3) Edit "1" in the right margin of Part I if more than five lines of entries are present.
Form 8941 - Credit for Small Employer Health Insurance Premiums
(1) Place Form 8941 in sequence order if significant entries are present.
(2) For prior year revisions edit as follows:
If | And | Then |
|---|---|---|
2013 and 2012 revisions, | A significant amount is present on Line 1a or an EIN is present on Line 1b, |
|
Form 5884-B - New Hire Retention Credit
(1) Form 5884-B, New Hire Retention Credit is historical (2010 through 2011).
Form 3800 - General Business Credit
(1) Form 3800, General Business Credit, must be filed with corporate tax returns when a significant amount is present on Schedule J, Line 3c - General Business Credit.
(2) Place Form 3800 in sequence order if significant entries are present.
(3) If an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on any line of Form 3800, Part III, Column (g) (Column (j) for 2023 and prior) correspond for the supporting credit form. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1a, 1b, 1c, 1e, 1f, 1h, 1i, 1j, 1k, 1l, 1m, 1n, 1p, 1s, 1t, 1w, 1x, 1y, 1aa, 1bb, 1zz, 3, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (b) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2023 - If Form 3800, Part III, Line 1b, 1c, 1e, 1f, 1g, 1h, 1i, 1j, 1k, 1m, 1n, 1p, 1s, 1t, 1u, 1w, 1x, 1y, 1aa, 1bb, 1cc, 1dd, 1ee, 1ff, 1zz, 3, 4a, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (d) has an EIN, do not correspond and continue to process the return.
Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1b, 1c, 1e, 1f, 1g, 1h, 1i, 1j, 1k, 1m, 1n, 1p, 1q, 1s, 1t, 1u, 1v, 1w, 1x, 1y, 1aa, 1bb, 1cc, 1dd, 1ee, 1ff, 1gg, 1zz, 3, 4a, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, or 4j Column (c) has an EIN, do not correspond and continue to process the return.
(4) See IRM 3.11.16.11.21, Line 5c - General Business Credit and Exhibit 3.11.16-19, Form 3800 - Prior Year Conversion Chart.
Form 8997 - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments
(1) Form 8997 is valid for Tax Period ending 201901 and later.
(2) Place Form 8997 in sequence order if the form is attached and significant entries are present in any of Parts I, II, III or IV.
Note: Transcription is different for Form 1120-RIC than Form 1120.
(3) No editing is required except for the indicator in Part III and Return Processing Code (RPC) “9” if Form 8997 is attached. See IRM 3.11.16.41.8, Return Processing Code (RPC), for more information.
(4) Part I - Total QOF Investment Holdings Due to Deferrals before Beginning of Tax Year (Row 1)
Line 2, Column e - Total amount
Line 2, Column f - Total amount
(5) Part II - Current Tax Year Capital Gains Deferred by Investing in QOF (Row 1)
Line 2, Column e - Total amount
Line 2, Column f - Total amount
(6) Part III - QOF Investments for Which Gain Is Included During Current Tax Year (Row 1)
Column a - EIN
Column b - Date
Column d - Special Gain Code
Column e - Amount of previously deferred short-term gain now included in taxable income
Column f - Amount of previously deferred long-term gain now included in taxable income
Part III Indicator - If more rows are present in Part III, edit a "1" in the right margin of Part III.
Line 2, Column e - Total amount
Line 2, Column f - Total amount
(7) Part IV - Total QOF Investment Holdings at Year End Due to Deferrals (Row 1)
Line 2, Column e - Total amount
Line 2, Column f - Total amount
Form 4255 - Certain Credit Recapture, Excessive Payments, and Penalties
(1) Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties, is valid for Tax Period ending 202401 and later.
(2) Place Form 4255 in sequence order if the form is attached and significant entries are present in Part I, Columns (s) or (t). See IRM 3.11.16.41.1, Sequence - Form 1120-RIC.
(3) If the Tax Period is 202312 and prior, do not sequence the Form 4255.
(4) The following lines will be transcribed on Form 4255.
Form 4255, Part I | Credit From | Column |
|---|---|---|
Line 1a | Form 7207 | (s) |
Line 1a | Form 7207 | (t) |
Line 1b | Form 3468, Part III | (s) |
Line 1b | Form 3468, Part III | (t) |
Line 1c | Form 7210 | (s) |
Line 1c | Form 7210 | (t) |
Line 1d | Form 3468, Part IV | (s) |
Line 1d | Form 3468, Part IV | (t) |
Line 1e Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7218 | (s) |
Line 1e Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7218 | (t) |
Line 1f Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7213, Part II | (s) |
Line 1f Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7213, Part II | (t) |
Line 1g Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 3468, Part V | (s) |
Line 1g Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 3468, Part V | (t) |
Line 1h | Form 8936, Part V | (s) |
Line 1h | Form 8936, Part V | (t) |
Line 1i Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7211 | (s) |
Line 1i Caution: If the Tax Period is 202412 and prior and a significant amount is present, edit an "X" to the left of the amount. This line is valid for Tax Period 202501 and later. | Form 7211 | (t) |
Line 1j | Form 3468, Part VI | (s) |
Line 1j | Form 3468, Part VI | (t) |
Line 1k | Form 8835 | (s) |
Line 1k | Form 8835 | (t) |
Line 2a | Form 8933 | (s) |
Line 2a | Form 8933 | (t) |
Line 2b | Form 8911, Part I | (s) |
Line 2b | Form 8911, Part I | (t) |
(5) If there is an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Form 1120-RIC, Schedule J, Line 1g (Amount from Form 4255, Part I, Line 3 Column (q)), then correspond for a Form 4255 if missing. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Return Processing - Form 1120-SF (OSPC Only)
(1) This subsection provides instructions for processing Form 1120-SF, U.S. Income Tax Return for Settlement Funds.
(2) Form 1120-SF can be filed on a calendar or fiscal year basis.
(3) Action Codes are not applicable to this form. Computer Condition Code "U" will continue to be used.
Sequence - Form 1120-SF
(1) Document Perfection is responsible for arranging Form 1120-SF in the following order when transcription line entries are present:
Pages 1, 2
EIN of Fund
(1) Perfect EIN in the upper right box under the tax year on Form 1120-SF. See IRM 3.11.16.6.2, Entity Perfection - Employer Identification Number (EIN).
Name of Fund
(1) All returns must have the Name Control underlined. See IRM 3.11.16.6.3, Entity Perfection - Name Control.
Address of Fund
(1) See IRM 3.11.16.6.5, Entity Perfection - Domestic Addresses.
Tax Period
(1) Edit Tax Period ending (except current calendar year) in YYMM format to the right of the title on Page 1 of the return. See IRM 3.11.16.7.1, Tax Period - Ending.
(2) Edit the Tax Period Beginning to the left of Form 1120-SF title area in MMDDYY format on an Initial, Final or Short Period return. See IRM 3.11.16.7.2, Tax Period Beginning - Initial, Final, or Short Period.
(3) See IRM 3.11.16.7.3, Early Filed Returns - Full Year and Short Period through IRM 3.11.16.7.9, Short Period Returns - With Prepaid Credits for editing Short Period returns.
Received Date
(1) Enter in MMDDYY format.
(2) Edit the received date in the dotted portion of Lines 7 through 8. See IRM 3.11.16.8, Received Date.
Computer Condition Codes
(1) Edit in the dotted portion of Lines 1 through 6. Valid codes for Form 1120-SF are C, D, E, F, G, M, N, O, R, T, U, W, X, Y, 1, 3, 7, and 8. See IRM 3.11.16.9.1, Computer Condition Codes.
Additional Form 1120-SF Perfection
(1) This subsection addresses the editing of additional Form 1120-SF information. See IRM 3.11.16.10, Additional Return Perfection.
Audit Codes
(1) Edit a "2 -" followed by the right Audit Code(s) in the left margin near Line 12 (e.g., "2 - 1").
(2) Edit Audit Code "1" Inconsistent Filer Under IRC 6222(b) if Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request, is attached, or;
The return has an attachment with the statement "Notice of Inconsistent Treatment under IRC 6222(b)(b)"; or
A statement showing the corporation is filing its return inconsistent with the way its partnership return was filed, or
Form 8275, Disclosure Statement is attached.
(3) Edit Audit Code "3" if:
"Unusual Refundable Credits" are claimed on Lines 16a through 16e. For a list of these credits, see IRM 3.11.16.9.1.14, CCC "N" - Joint Committee Case.
Taxpayer quotes "Change of Accounting Period" under Headquarters "Grant Letter", or Revenue Procedure 2006-45 or 2006-46. Attach Form 4227, Intra-SC Reject or Routing Slip to Examination (Audit) showing: "Taxpayer is changing accounting period pursuant to Headquarters "Grant Letter", or Revenue Procedure 2006-45 or 2006-46. "
Penalty and Interest Code
(1) Enter a Code "4 - 1" in the left margin near Line 12 when precomputed delinquency penalty and/or interest is shown on a return with a received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
(2) This code is valid only within the unextended ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ some other situation, such as an estimated Tax Penalty, do not Code "4 - 1" and do not insert Computer Condition Code "R." If only interest is shown, edit CCC "R."
Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Paid Preparer Information
(1) See IRM 3.11.16.11.8, Paid Preparer Checkbox Indicator and IRM 3.11.16.11.9, Paid Preparer Section.
Total Assets End
(1) Edit the amount from Page 2, Schedule L, Line 6 (End of Year) in dollars only to the bottom right corner of Page 1. Bracket if negative. Figure 3.11.16-40.
If | Then |
|---|---|
Schedule L, Line 6 (End of Year) is blank, | Compute Lines 1 through 5 if present and edit the amount to the bottom right corner of Page 1. |
Income and Deductions of Fund - Line 14
(1) Line 14 - Modified Gross Income. Line 14 is edited in dollars only.
(2) If blank, compute by subtracting Line 13 from Line 6. Bracket if negative. Do not edit a "0" if the result is zero.
Tax Computation - Lines 15 through 20
(1) Line 15 - Total Tax. If pre-computed interest or delinquency penalty or an additional charge is evident, ensure that it has not been included in Line 15.
If | Then |
|---|---|
The amount on Line 15 has pre-computed interest or penalty or additional charge, |
|
(2) Line 16c - Refund of overpaid estimated tax applied for on Form 4466. If there is a significant entry on Line 16c, refer to CCC "O" procedures. See IRM 3.11.16.9.1.15, CCC "O" - Module Freeze.
(3) Line 16d - Total estimated payments. If blank, subtract Line 16c from the total of Lines 16a and 16b and enter the total amount on Line 16d. For CCC "O" instructions. See IRM 3.11.16.9.1.15, CCC "O" - Module Freeze.
(4) Line 16e - Tax deposited with Form 7004.
Reminder: Look for any Unusual Credits, see IRM 3.11.16.9.1.14, CCC "N" - Joint Committee Case and IRM 3.11.16.42.8.1, Audit Codes.
(5) Line 17 - Estimated Tax Penalty. If Form 1120-SF , Line 17 is blank, and Form 2220 is attached with a significant entry on Page 2, Line 38, then edit the amount from Form 2220 , Page 2, Line 38 to Form 1120-SF, Line 17. See IRM 3.11.16.11.6.6, Line 34 - Estimated Tax Penalty.
(6) Lines 18 and 19 - Tax due/Overpayment. Edit as positive only. If the taxpayer enters a negative amount, do not bracket. Edit the proper entry to Line 18 or 19 if both are blank. Do both of the following:
Add Lines 15 and 17. Subtract Line 16f.
Edit the positive result on Line 18 or the negative result (do not bracket) on Line 19.
(7) If pre-computed interest or delinquency penalty or additional charge is evident, ensure that it has not been included in Line 18 or reduced Line 19.
If | Then |
|---|---|
The amount on Line 18 has pre-computed interest or penalty or additional charge, |
|
The amount on Line 19 is reduced by pre-computed interest or penalty or additional charge, |
|
(8) Line 20 (center) - Overpayment Credit to Estimated Tax.
Schedule L, Page 2 - Balance Sheet
(1) Do not correspond for missing or incomplete Schedule L (Balance Sheet) on Form 1120-SF. Edit in dollars only.
(2) Line 6, Total Asset - Column (a), Beginning of Year.
(3) Line 6, Total Asset - Column (b), End of Year. If blank, add Lines 1 through 5, Column (b).
(4) Line 9, Total - Column (a), Beginning of Year.
(5) Line 9, Total - Column (b), End of Year. If blank, add Lines 7 and 8, column (b).
Additional Information, Page 2
(1) Line 1a - Amount of Transfers.
(2) Line 2 - Tax Exempt Interest.
(3) Line 3b - Direct and Indirect Distributions.
(4) Line 4a - Distributions to Transferor.
(5) Line 5a - Liability (or Liabilities). Edit the applicable Codes to the left of the box checked. Codes 1 through 5 can be entered.
Tort - Code 1
Breach of Contract - Code 2
Violation of Law - Code 3
CERCLA - Code 4
Other - Code 5
Note: More than one code can be edited.
Form 4876-A - Election To Be Treated as an Interest Charge DISC (KCSPC Only)
(1) This subsection provides instructions for the processing of Form 4876-A, Election to be treated as an Interest Charge DISC.
(2) Many applicable rules refer to a Domestic International Sales Corporation, or "DISC". The term Interest Charge Domestic International Sales Corporation, or "IC-DISC", does not refer to a different type of entity but reflects that income accumulated in a DISC is subject to an interest charge. See IRC 995(f) and Form 8404, Interest Charge on DISC-Related Deferred Tax Liability.
(3) Form 4876-A is processed only at the Kansas City Processing Center.
(4) When corresponding with the corporation, use Letter 599C, Request for more information for Form 1120-IC-DISC, Form 4876-A and Form 8404.
Form 4876-A and Form 1120-IC-DISC "Data File"
(1) Maintain a "IC-DISC Data File" to capture pertinent information related to the processing of Form 4876-A and Form 1120-IC-DISC.
(2) The "IC-DISC Data File" can include (but is not limited to) the following information for all processed Form 4876-A and Form 1120-IC-DISC:
Name of corporation
EIN
Received date - Form 4876-A
Received date - Form 1120-IC-DISC
Tax period - Form 1120-IC-DISC
DLN - Form 1120-IC-DISC
Notate and "date" any action(s) taken (e.g., Form 1120-IC-DISC sent to Entity to delete Filing Requirement, correspondence issued to taxpayer).
Filing Requirements
(1) Time for making Election:
If it is the corporation's first tax year, Form 4876-A must be filed within 90 days after the beginning of the tax year.
If it is not the corporation's first tax year, Form 4876-A must be filed during the 90-day period immediately preceding the first day of that tax year.
≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" does not apply to time for filing Form 4876-A. See LEM III, 3113.
If the election is not timely made, treat as a disapproved election.
(2) Ineligible Corporations - The following corporations shall not be eligible to be treated as an interest charge DISC. If an ineligible corporation files, treat as a disapproved election.
A corporation exempt from tax by reason of IRC 501 (Form 990).
A personal holding company, IRC 542 (Form 1120).
A financial institution, IRC 581 or IRC 593.
An insurance company subject to tax imposed by Subchapter L (Form 1120-L).
A regulated investment company as defined in IRC 851(a) (Form 1120-RIC).
An S Corporation (Form 1120-S).
Document Perfection
(1) Shareholders’ Consents - For the election to be valid, all shareholders must consent. The consents must be attached to or appear in Part II of Form 4876-A. If a shareholder failed to consent timely to the election but then showed to the satisfaction of the service center that there was reasonable cause for such failure, and if such shareholder then files a proper consent to the election within the extended period of time as granted by the IRS the service center can treat the election as valid.
(2) The consents will appear on a separate statement attached to Form 4876-A or filed as a separate statement within the time specified for the filing of a consent. (See Part II on Form 4876-A.)
(3) Statement of consent shall state:
The name, address, and identification number of the corporation and each of the shareholders.
The number of shares the shareholder owned (or expects to own) at the beginning of the tax year the election takes effect.
The number of stock shares owned by shareholder when making the consent.
(4) Submission Processing can grant an extension of time for filing consents in certain circumstances.
If the shareholder who failed to consent at the time of the election consents and demonstrates reasonable cause for the failure.
If shares are transferred before a consent is filed, the transferee shareholder can consent to the IC-DISC election as long as the transfer occurs and the consent is filed with-in the 90 days of the tax year.
If shares are transferred more than 90 days after the tax year began, an extension can be granted only if the transferor was eligible for one.
In any event, any extension of time for filing of a consent by any shareholder shall not extend beyond the day before the last day of the first taxable year to which a corporation's election to be treated as an interest charge DISC applies.
(5) Supplemental Form 4876-A - If between the date the election is filed and the date it takes effect, the corporation issues more stock or the stock ownership changes, it must file a supplemental Form 4876-A, with "SUPPLEMENTAL" written across the top of the form. The form must be filed within the first 90 days of the tax year the election takes place. If the supplemental Form 4876-A is not timely filed, disapprove the election.
The supplemental form will include all the information from the earlier form except for the list of owners claimed in Parts I and II. Only the owners of the new or additional shares with their consents will be reported in Part I, and in Part II. Each new shareholder or holder of additional shares must consent to the IC-DISC election for the Supplemental Form 4876-A to be valid.
(6) Eligibility - Ensure that the election is signed by an authorized officer of the corporation, that the corporation is eligible to be treated as an interest-charge DISC, that it is accompanied by (or was supplemented with) a complete set of shareholder consents, and that it was timely filed.
(7) Other data to be examined - Verify that all questions on the election are answered. Use the Letter 599C, Request for more information for Form 1120-IC-DISC, Form 4876-A and Form 8404, for all correspondence where the election is incomplete. The taxpayer will be given 30 days to respond. Suspense for 45 days.
If | Then |
|---|---|
The corporation provides the requested information, | Approve the election. |
No reply, or information requested was not provided, | Treat as a disapproved election. |
Approved Elections
(1) When an election is approved, correspond to inform the taxpayer of the approval. See IRM 3.11.16.43.8, Taxpayer Notification of Action Taken On Form 4876-A. Attach the suspense copy of the letter to the back of the Form 4876-A. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(2) Research the Business Master File (BMF).
If no filing requirements are found, take no action.
If Form 1120 filing requirements are found, prepare Form 4227, Intra SC Reject or Routing Slip to Entity Control and attach to a photocopy of Form 4876-A (notate "COPY" on the photocopy). Include a brief notation on Form 4227, "1120-IC-DISC election approved, delete Form 1120 filing requirement."
Disapproved Elections
(1) When an election is not approved, correspond to inform the taxpayer of the disapproval. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(2) Prepare Form 4227, Intra-SC Reject or Routing Slip.
Include the taxpayer's name and EIN, along with a brief notation to Entity Control to research the BMF and establish the Form 1120 filing requirements for the corporation if needed.
Attach a copy of the taxpayer's response to the back of the Form 4876-A.
Termination of Election
(1) A corporation can revoke its election for any taxable year of the corporation after the first taxable year for which the election is effective. The revocation can be made as follows:
(2) The corporation must file a statement that it revokes its election under IRC 992(b) to be treated as an interest charge DISC.
(3) The statement must include the corporation's name, address, employer identification number (EIN), and the first taxable year of the corporation for which the revocation is to be effective.
(4) The statement shall be signed by any person authorized to sign a corporation return under IRC 6062.
(5) Years for which this revocation is effective:
For the taxable year in which the revocation was made and for all taxable years thereafter, if the revocation was made during the first 90 days of that year.
For the taxable year following the year in which the revocation was made, and for all succeeding taxable years thereafter, if the revocation was made after the first 90 days of that year.
(6) Submission Processing Centers receiving the revocation must route the revocation to KCSPC via Form 4227, Intra-SC Reject or Routing Slip. Prepare Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform the taxpayer IRS sent the revocation to Kansas City.
(7) The sale of stock to another shareholder does not require an "Amended" election. The election remains in effect until terminated.
(8) To be a DISC for a particular taxable year, a corporation must both have a DISC election in effect and meet substantive requirements that, in turn, include (but are not limited to) 95-percent qualifying gross receipts and assets tests. See IRC 992. The failure of an IC-DISC to meet the gross receipts or assets tests in any one year generally causes the corporation not to be a DISC for that year but does not terminate the election. A "Former IC- DISC" is a corporation that is not a DISC for the particular tax year, but held certain income from when it was a DISC. See IRC 992.
(9) If a corporation fails to be a DISC every year for five consecutive taxable years of the corporation for which an election is effective, IRC 992(b)(3)(B) provides that the election shall be terminated and not be in effect for any taxable year of the corporation after such 5th year. The corporation may make a new IC-DISC election, subject to applicable requirements. See 26 CFR 1.992-2(e).
Example: A corporation has a DISC election in effect. Failure to meet the gross receipts test causes the corporation to be not a DISC for a three-year period. The corporation is a DISC for the next three years. Failure to meet the gross receipts test causes the corporation not to be a DISC for the two years after that. Because the five years of failure to be a DISC were not consecutive, the election still enables the corporation to be a DISC for the following year if it meets all the other requirements.
One way a corporation can fail to be a DISC for a particular taxable year is not to have any gross receipts: 0⁄0 does not "equal or exceed" 95 percent. See IRC 992(a)(1)(A).
A taxpayer’s failure to file a return altogether can suggest that it had no gross receipts for the year. (A taxpayer will check the "Final Return" box on its return as applicable.)
Under certain circumstances, a corporation with a taxable year files a return as a DISC, and does not notify the IRS that it is not a DISC, may be treated as a DISC (and thus will not be able to claim that it is not a DISC) for such taxable year. See IRC 992(a)(2) and Regulations 1.992-1(g).
(10) When an election is revoked, terminated, or may have terminated (because, for instance, taxpayer’s not filing suggests it may have failed the gross receipts test for certain years), correspond to determine the taxpayer's liability and filing requirements (e.g., whether the taxpayer intends to file as another kind of corporation), if the taxpayer has not already done so. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(11) If the taxpayer's reply indicates that the IC-DISC election was terminated, but they will continue to file corporation (or other) returns:
Research the BMF to establish the filing requirement or reopen a previously deleted filing requirement, as applicable.
Attach a copy of the reply to the Form 4876-A.
(12) If the taxpayer's reply indicates that both its IC-DISC election and the business were terminated, attach a copy of the reply to the Form 4876-A. Take no other action.
(13) If the taxpayer does not reply, research the BMF.
If BMF research shows that both its IC-DISC election and the business were terminated, take no action.
If BMF research does not show the business to have been terminated, prepare Form 4227, Intra-SC Reject or Routing Slip. Include the taxpayer's name and EIN, along with a brief notation to Entity to research the BMF and establish the corporation's Form 1120 filing requirement (see IRM 20.1).
Attach the revocation or termination notice to the back of the corporation's Form 4876-A.
Form 4876-A Files
(1) Maintain the Form 4876-A in Document Perfection.
File "approved" elections in an "Approved" file. The "approved" file is organized by Tax Period ending date and then alphabetically.
File "disapproved" elections alphabetically in a "Disapproved" File.
File revoked or terminated elections alphabetically in a "Revoked" file.
If a corporation has filed its "final" Form 1120-IC-DISC, then file Form 4876-A alphabetically in a "Final" file.
Maintain other Form 4876-A files as needed.
(2) Form 4876-A will be used as a validation file when the returns are subsequently received.
Taxpayer Notification of Action Taken on Form 4876-A
(1) When an election is approved, initiate correspondence to inform the taxpayer:
That the election has been approved; and
The beginning and ending dates of the first Tax Period and;
The correct EIN to be used by the IC-DISC.
See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(2) When an election is disapproved, initiate correspondence to inform the taxpayer the election has not been approved, include:
The reason(s) for disapproval:
That other correct returns will be filed; and
That an election for a subsequent Tax Period (or, if time remains, for the same Tax Period) will be filed.
See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(3) When an election is terminated, initiate correspondence to inform the taxpayer that the election has been terminated. Include the following:
The effective date of termination; and
The reason for termination.
See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Form 4876-A File Review
(1) Review the Form 4876-A file monthly, pulling those which have been tagged with the delinquency check month (e.g., a Form 1120-IC-DISC is due in the month being checked).
(2) If the "IC-DISC Data File" has not been updated to indicate receipt of a return for the right period, check the taxable year ending date to determine if a Form 1120-IC-DISC is due. If the taxable year ending is unknown or blank, check the taxable year beginning date. The latest return due date is twenty and one-half months following the beginning of the taxable year (or, the 15th day of the 9th month following the close of the tax year). If the taxpayer has not filed Form 1120-IC-DISC, treat as follows:
Perform research to determine whether the taxpayer filed Form 1120, U.S. Corporation Income Tax Return, for the current tax year.
If a Form 1120 has been filed, update the "IC-DISC Data File" to reflect Form 1120 was filed for which Tax Period. No further action is required.
If Form 1120 has not been filed, correspond with the taxpayer to request submission of the return. Include a paragraph asking why the return was not filed and if they plan to file future returns. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
If the taxpayer responds and gives reasonable cause that meets the criteria in IRM 20.1.1, Introduction and Penalty Relief, attach the response to the back of the return and follow the procedures below.
Continue processing Form 1120-IC-DISC. Do not issue any penalties.
Edit Action Trail on Form 1120-IC-DISC. Notate the received date and Tax Period of Form 4876-A.
Add an entry to the "IC-DISC Data File".
If the taxpayer responds without reasonable cause that meets the criteria in IRM 20.1.1 , Introduction and Penalty Relief, attach the response to the back of the return and follow the procedures below.
Continue processing Form 1120-IC-DISC.
Edit an Action Trail on Form 1120-IC-DISC. Notate the received date and Tax Period of Form 4876-A.
Prepare Form 3465, Adjustment Request, and notate "the taxpayer has failed to file a Form 1120-IC-DISC".
Attach Form 3465 and add entry to the "IC-DISC Data File".
Assess the Civil Penalty per IRC 6686. See IRM 20.1.1.2.3, Approval Prerequisite to Penalty Assessments, for more information.
Route Form 3465 to Accounts Management (AM).
Continue processing Form 1120-IC-DISC.
Edit an Action Trail on Form 1120-IC-DISC. Notate the received date and Tax Period of Form 4876-A.
Prepare Form 3465, Adjustment Request and notate "the taxpayer has failed to file a Form 1120-IC-DISC".
Attach Form 3465 and add entry to the "IC-DISC Data File".
Assess the Civil Penalty per IRC 6686. See IRM 20.1.1.2.3, Approval Prerequisite to Penalty Assessments, for more information.
Route Form 3465 to Accounts Management (AM).
Continue processing Form 1120-IC-DISC.
Edit an Action Trail on Form 1120-IC-DISC. Notate the received date and Tax Period of Form 4876-A.
Prepare Form 3465, Adjustment Request and notate "the taxpayer has failed to file a Form 1120-IC-DISC".
Attach Form 3465 and add entry to the "IC-DISC Data File".
Assess the Civil Penalty per IRC 6686. See IRM 20.1.1.2.3, Approval Prerequisite to Penalty Assessments, for more information.
Route Form 3465 to Accounts Management (AM).
If the taxpayer does not reply (No Reply) then follow the procedures below.
Notate the received date and Tax Period of Form 4876-A.
Prepare Form 3465, Adjustment Request and notate "the taxpayer has failed to respond."
Assess the Civil Penalty per IRC 6686. See IRM 20.1.1.2.3, Approval Prerequisite to Penalty Assessments, for more information.
Add entry to the "IC-DISC Data File".
Route Form 3465 to Accounts Management (AM).
If | Then |
|---|---|
Letter 599C non-filer response is received within the suspense period with reasonable cause, |
If | Then |
|---|---|
Letter 599C non-filer response is received within 1-30 days with Form 1120-IC-DISC without reasonable cause, | |
Letter 599C non-filer response is received within 31-45 days with Form 1120-IC-DISC without reasonable cause, | |
Letter 599C non-filer response is received 46 days or greater with Form 1120-IC-DISC without reasonable cause, |
If | Then |
|---|---|
Letter 599C non-filer does not reply (No Reply), |
(3) Dispose of Form 4876-A, ten years after the election is effective, if the corporation has not filed a Form 1120-IC-DISC for any of the taxable years that the election was effective. DO NOT DISPOSE OF ANY Form 4876-A, IF THE CORPORATION HAS EVER FILED A Form 1120-IC-DISC.
Form 1120-IC-DISC - Interest Charge Domestic International Sales - Corporation Return
(KCSPC Only)
(1) This subsection provides instructions for the examination of Form 1120-IC-DISC, Interest Charge Domestic International Sales Corporation Return.
(2) Form 1120-IC-DISC is processed only at the Kansas City Processing Center.
(3) When corresponding with the taxpayer, use Letter 118C, Corporate Return Incomplete for Processing: Form 1120, Form 1120 Series, Form 1120-S or Letter 599C, Request for Additional Information for Form 1120-IC-DISC, Form 4876-A and Form 8404. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(4) References to Computer Condition Codes, Audit Codes and Transaction Codes in Exhibit 3.11.16-2, Routing Guide for Attachments, are not applicable to Form 1120-IC-DISC.
(5) Update the "IC-DISC Data File" with any pertinent information related to the processing of Form 1120-IC-DISC. See Form 4876-A and IRM 3.11.16.43.1, Form 4876-A and Form 1120-IC-DISC "IC-DISC Data File."
Due Date
(1) Form 1120-IC-DISC must be filed on or before the 15th day of the 9th month following the close of the taxable year. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
(2) No extension of time to file Form 1120-IC-DISC will be granted.
(3) If it is determined that Form 1120-IC-DISC is delinquent, correspond with the taxpayer using Letter 599C to determine why the return was late. Suspend the Form 1120-IC-DISC for 45 days. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(4) If the taxpayer responds and gives reasonable cause that meets the criteria in IRM 20.1, Penalties, attach the response to the back of the return and continue processing.
(5) If the taxpayer responds and does not meet the criteria in IRM 20.1.1, or the taxpayer does not respond, attach a copy of the reply or the suspense copy of the correspondence to the return and continue processing. Also, follow the failure to supply information instructions in IRM 3.11.16.44.7, Civil Penalty - IRC 6686.
Eligibility Determination
(1) If the words "Former DISC" or "Former IC-DISC" appear across the top of the return, check the Form 4876-A files for all Form 1120-IC-DISC returns for verification of eligibility and to prevent delinquency notices.
(2) A former DISC or former IC-DISC is a corporation that is not a DISC for the particular tax year, but held certain income from when is was a DISC. See IRM 3.11.16.43.6(9). Generally, the term Interest Charge Domestic International Sales Corporation, or IC-DISC, does not refer to a different type of entity but reflects that income accumulated in a DISC is subject to an interest charge. See IRM 3.11.16.43(2). Although the terms DISC, IC-DISC, former DISC, and former IC-DISC are generally interchangeable, a reference to a former DISC may reflect a distinction about the entity not having been a DISC since 1984, or not having been subject to the interest charge applicable to years after 1984. See IRC 995 (f) and the Instructions to Form 1120-IC-DISC, which address each distinctly, but similarly.
(3) Page 1 and the schedules for figuring taxable income need not be completed by a former DISC or former IC-DISC. "X" any taxable income items on "Former Form 1120-IC-DISC" or "Former Form 1120-IC-DISC" returns. Schedules J, L, M, and K must be completed. If not, follow the following correspondence guidelines:
Issue Letter 599C, Request for more information for Form 1120-IC-DISC, Form 4876-A and Form 8404, to secure the completed Schedules J, L, M, and K. Suspend the Form 1120-IC-DISC for 45 days.
If the taxpayer responds and/or has provided the missing schedules, continue processing the return.
If it has been determined that the taxpayer's response is incomplete, issue a follow-up Letter 599C for the missing information. Inform the taxpayer that penalties are assessed for failure to provide information. Attach a copy of the reply or the suspense copy of the correspondence to the return. See IRM 20.1.1.2.3 , Approval Prerequisite to Penalty Assessments, for more information.
If the taxpayer does not respond, follow procedures for Civil Penalty - IRC 6686. (Penalties of $100 are assessed for failure to provide information.) Attach the suspense copy of the correspondence to the return, see IRM 3.11.16.44.7, Civil Penalty - IRC 6686. See IRM 20.1.1.2.3, Approval Prerequisite to Penalty Assessments, for more information.
(4) Accept Form 1120-IC-DISC filed to show distribution of a "Former DISC" as long as the correct schedules are completed.
(5) Accept short period liquidating "Former DISC" returns.
(6) For other returns, verify that the corporation is eligible to file Form 1120-IC-DISC.
(7) Search the "Accepted" file or "IC-DISC Data File". If an accepted Form 4876-A is on file, update the "IC-DISC Data File" to indicate that a return was received for that corporation.
(8) If an accepted Form 4876-A is not found, search for a "Revoked" Form 4876-A including a terminated election. See IRM 3.11.16.43.6. If the Form 4876-A has been "Revoked", advise the corporation that the election has been terminated, the effective date of the termination, and the reason for the termination.
(9) If neither an accepted or revoked Form 4876-A can be found, initiate correspondence with the corporation to determine if Form 4876-A was filed. Request a photocopy of Form 4876-A and the acceptance letter when corresponding. Suspend the Form 1120-IC-DISC for 45 days. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
When a reply is received:
File the acceptance letter in the "Accepted" file.
Process Form 1120-IC-DISC.
Update the "IC-DISC Data File."
See IRM 3.11.16.43.1, Form 4876-A and Form 1120-IC-DISC "IC-DISC Data File."
If | Then |
|---|---|
The corporation provides a copy of the acceptance letter, | |
The corporation provides a completed, eligible Form 4876-A election and a copy of a Certified Mail Receipt, with the receipt date making the election timely filed, | Process the Form 4876-A election and the Form 1120-IC-DISC normally. Update the "IC-DISC Data File" appropriately. |
The corporation either failed to file a Form 4876-A or does not provide a copy of the acceptance letter, | Treat as an ineligible filer. |
(10) Examine the following data on the return and schedules. A corporation will not qualify as an 1120-IC-DISC if:
Either Question "2a "or Question "2b" (Schedule O) is answered "No", and "2c" (Schedule O) is also answered "No".
Question "3" (Schedule O) is answered "Yes".
Question "4" (Schedule O) is answered "No."
Question "2c" is answered "No."
Caution: If Question "2c" is blank, but the taxpayer has indicated "No" to Questions "2a" and/or "2b", correspond for the missing information using Letter 599C. Refer to IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. Continue processing the return upon receipt of the taxpayer's reply. If the taxpayer fails to reply, follow procedures for Civil Penalty - IRC 6686. (Penalties of $100 are assessed for failure to provide information.) Attach a copy of the reply or the suspense copy of the correspondence to the return, see IRM 3.11.16.44.7, Civil Penalty - IRC 6686.
The response to Question "2a" or Question "2b" is "No", and Question "2c" is "No", or
The response to Question "4" is "No",
Page 1, Line 1 has no significant entry and Schedule L, Column (a) (Beginning of tax year) is blank, or
Page 1, Line 1 has no significant entry and Schedule J, Part III, Line 3 has no significant entry,
Correspond with the corporation to verify the response.
Suspend Form 1120-IC-DISC for 45 days.
If | And | Then |
|---|---|---|
Process Form 1120-IC-DISC as an eligible filer. | ||
The response to any of the questions above indicates ineligibility, |
| |
The response to correspondence explains that the corporation qualifies as an IC-DISC even though the response to question "2c" indicates ineligibility (such a response may quote IRC 992 or Treas. Reg. 1.992-2 or -3) |
| Process Form 1120-IC-DISC as an eligible filer. |
The response to correspondence confirms the initial responses to the questions above, |
| Process Form 1120-IC-DISC as an ineligible filer. |
There is no reply to the correspondence, |
| Process Form 1120-IC-DISC as an ineligible filer. |
Ineligible Filers
(1) A former DISC or former IC-DISC does not qualify as a-DISC for the year at issue but must file an abbreviated Form 1120-IC-DISC in addition to any other return required. See IRM 3.11.16.44.2, Eligibility Determination.
Document Perfection
(1) Examine all returns for timeliness and completeness. The name, address, EIN, and Tax Period of the corporation must be present along with a signature.
(2) If Line F, Box 2, Page 1 of Form 1120-IC-DISC is checked or there is a sign this is a "Final" return, research INOLES for filing requirement.
(3) If no 1120 filing requirement was established, correspond using Letter 599C , Request For Additional Information For Form 1120-IC-DISC, Form 4876-A, and Form 8404, to determine the taxpayer’s liability and filing requirement (e.g., was the IC-DISC election terminated, does the taxpayer intend to file Form 1120 or other corporate return). See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(4) Follow the instructions below when Letter 599C, Request For Additional Information For Form 1120-IC-DISC, Form 4876-A, and Form 8404, was issued.
If | And | Then |
|---|---|---|
The taxpayer replies, | Indicates the IC-DISC was terminated but the corporation will continue to file tax returns, |
|
The taxpayer replies, | Indicates that both the IC-DISC and the business were terminated, |
|
The taxpayer does not reply (No Reply to Letter 599C), |
|
|
(5) Verify that the questions under "Other Information" on Page 6 (Schedule O) are answered and that the required schedules (or attachments) are present and properly completed.
(6) If Schedule J indicates a deemed or actual distribution to Shareholders (Part I, Line 24; Part III, Line 3; Part IV, Lines 4(a), 4(b) or 4(d); or Part V, Line 3) there must be Schedule(s) K present. Correspond for Schedule K if missing.
(7) If there are any export receipts in Columns b and d, Lines 1c, 2a, 2b, 2c, and 2d on Schedule B of Form 1120-IC-DISC, verify that Schedule(s) N, Export Gross Receipts of the Form 1120-IC-DISC and Related U.S. Persons is attached and completed. Initiate correspondence action if Schedule N is missing or incomplete. Schedule N, Export Gross Receipts of the IC-DISC and Related U.S. Persons, requires at least the following:
There is at least one product code number and percent of export receipts entered on Line 1. If the percent of export receipts is less than 100 percent, Line 2 must also be complete.
An amount is present on Line 2a.
See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(8) If Question G(1) Page 1, Form 1120-IC-DISC, is answered "Yes," then at least one line below Question G(1) must be completed. Correspond for missing entries only if correspondence is initiated for another reason. Do not correspond if only Question G(1) is incomplete. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(9) If correspondence is necessary, suspend the Form 1120-IC-DISC for 45 days. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information. If no response, attach the suspense copy of the correspondence to the return and continue processing. Also, follow the failure to supply information instructions in IRM 3.11.16.44.7, Civil Penalty - IRC 6686.
Math Verification
(1) For any of the following math verifications, correspond if it is necessary to obtain additional information. Only correspond with the taxpayer for missing amounts and/or if the tax examiner cannot compute the correct amount with the information given. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
(2) Verify that the amounts, if any, on the following lines on Page 1 have been correctly computed and carried forward from the proper schedules or attachments. Verify Lines 1, 2, 4, 6a, 6b, and Box E in the upper right corner of Page 1.
(3) Line 3 - Math verify the total by subtracting the amount on Line 2 from Line 1.
(4) Line 5 - Math verify by subtracting Line 4 from Line 3.
(5) Line 6c - Math verify by adding Lines 6a and 6b.
(6) Line 7 - Math verify by subtracting Line 6c from Line 5.
(7) Line 8 - If an amount is entered on Line 8, math verify the attached Form 4136, Column (d). Verify the amounts in Column (d) are equal to Form 1120-IC-DISC, Line 8.
(8) Math verify Schedule A as follows:
Verify Line 6 by adding the amounts on Lines 1 through 5.
Verify Line 8 by subtracting Line 7 from Line 6.
(9) Math verify Schedule B as follows:
Verify Line 1c, Column (e) by adding the amounts in Columns (c) and (d), Lines 1a(i), 1a(ii), 1a(iii), 1a(iv), 1b(i), and 1b(ii).
Verify Line 2k, Column (e) by adding the amounts in Columns (c) and (d), Lines 2a through 2j.
Verify Line 3g, Column (e) by adding the amounts in Columns (c) and (d), Lines 3a through 3f.
Verify Line 4 by adding Lines 1c, 2k, and 3g Column (e).
(10) Math verify Schedule C as follows:
Verify Line 9 by adding the amounts on Lines 1 through 8.
Verify Line 18 (Line 14 for 2017 and prior) by adding the amounts on Lines 9 through 16, Column a (Lines 1 through 13, Column a for 2017 and prior).
Verify Line 21 by adding line 9, 10, 12(a), 14, and 17 Column (c) (For 2017 and prior: verify Line 16 by subtracting Line 15 from Line 14).
(11) Math verify Schedule E as follows:
Verify Line 1n by adding amounts Lines 1a through 1m.
Verify Line 2h by adding amounts Lines 2a through 2g.
Verify Line 3 by adding amounts on Lines 1n and 2h.
(12) Math verify Schedule L as follows:
Verify Line 3, Total assets, Column B, by totaling the amounts in the respective columns (the line for "Less allowance for bad debts" and the line for "Less accumulated depreciation" are minus amounts).
Verify Line 15, Column B, by totaling Lines 4 through 14 in the respective columns (Line 14 is a minus amount).
(13) If math verification from the information given is not possible, correspond for missing or incorrect amounts ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Suspend Form 1120-IC-DISC for 45 days. Attach a copy of the reply or the suspense copy of the correspondence to the return.
When the taxpayer responds, perfect the return and continue processing.
If the taxpayer fails to respond, follow the Civil Penalty procedures, see IRM 3.11.16.44.7, Civil Penalty - IRC 6686
Disposition of Documents
(1) Sort the returns into the following groups in EIN order:
Returns with a refund due.
All others.
(2) To complete the processing of Form 1120-IC-DISC, take the following actions:
Hand carry returns to the Control unit.
Hand carry returns to the Numbering unit.
Note: Numbering will hand carry returns back to C&E.
Record the Form 1120-IC-DISC DLN in the "IC-DISC Data File". See IRM 3.11.16.43.1, Form 4876-A and Form 1120-IC-DISC "Data File."
Hand carry returns to Accounting.
(3) Update the "IC-DISC Data File" to reflect Form 1120-IC-DISC processing information. See IRM 3.11.16.43.1, Form 4876-A and Form 1120-IC-DISC "Data File."
Civil Penalty - IRC 6686
(1) IRC 6686, enacted by the Revenue Act of 1971, provides for a penalty to be imposed on any person required to supply information or to file a return under IRC 6011(c) and who fails to supply information or file a return at the time prescribed, or who files a return which does not show the information required. The penalties provided under IRC 6686 are subject to reasonable cause provisions. The penalties are calculated as follows:
$100 for each failure to supply information (the total amount imposed for all failures during any calendar year shall not exceed $25,000).
$1,000 for each failure to file a return.
(2) When it is determined the taxpayer has failed to file Form 1120-IC-DISC, treat as follows:
Research to determine whether taxpayer filed Form 1120, U.S. Corporation Income Tax Return, for the period in question.
If a Form 1120 has been filed, notate on the Form 4876-A, "Form 1120 filed for the tax year." No further action is required.
(3) If Form 1120 has not been filed, follow procedures as outlined in (a) through (d), below.
Photocopy the Form 4876-A, Election To Be Treated as an IC-DISC.
Prepare Form 3465, Adjustment Request and attach the Form 4876-A photocopy.
Notate on Form 3465 that "the taxpayer has failed to file a Form 1120-IC-DISC - possible Civil Penalty per IRC 6686."
Route Form 3465 and attached photocopy to Accounts Management Non-Master File (AM NMF).
(4) When it is determined that AM NMF should assess the penalty under IRC 6686 for failure to supply information or for late filing, treat as follows:
Hand carry the Form 1120-IC-DISC for blocking and numbering.
Photocopy Page 1 of the numbered return and annotate the copy "Copy, DO NOT Process."
Prepare Form 3465 and attach the copy. Indicate on the Form 3465 why the penalty may need to be assessed. See IRM 20.1.1.2.3, Approval Prerequisite to Penalty Assessments, for more information.
Example: "Late filed return possible Civil Penalty per IRC 6686."
Indicate on the Form 1120-IC-DISC "Form 3465 prepared."
Route the Form 3465 and attached photocopy to AM NMF.
Continue processing the Form 1120-IC-DISC and then route to Non-Master File (NMF) Accounting.
Taxable Year of Form 1120-IC-DISC
(1) The first Form 1120-IC-DISC filed by a corporation will establish the taxable year ending date. Verify the date is the same as shown on the election form. The tax year must conform to the tax year of the majority shareholder (or shareholder group). See IRC 441(h).
Note: Refer to Box C of Form 4876-A, Election to be Treated as an Interest Charge DISC, to verify tax year of IC-DISC majority shareholder.
(2) If the tax year is the same, continue processing the return.
(3) If the tax year is not the same and there is a sign the tax year is being changed to meet the tax year requirements of IRC 441(h), continue processing the return.
(4) If the tax year is not the same and there is no indication the tax year is being changed to meet the tax year requirements of IRC 441(h), correspond using Letter 599C, Request for more information for Form 1120-IC-DISC, Form 4876-A and Form 8404. to inform the taxpayer that the return must be re-submitted so that the tax year is the same as stated on the election form. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Attach a blank Form 1120-IC-DISC and a copy of the election form on file.
Suspend for 45 days.
Attach a copy of the correspondence to the back of the election form.
(5) If the taxpayer submits a return with the correct Tax Period, attach a copy of the reply to the back of the return and process as directed.
(6) If the taxpayer fails to respond, or fails to file a return with the correct Tax Period, treat as an ineligible filer. See IRM 3.11.16.44.3, Ineligible Filers.
Amended Returns and Secured Form 1120-IC-DISC
(1) In some cases, Submission Processing Centers will receive amended copies of Form 1120-IC-DISC.
If | Then |
|---|---|
Research indicates that a Form 1120-IC-DISC was previously filed, | Send the amended return to Accounts Management for processing. |
Research indicates that a Form 1120-IC-DISC was not previously filed, | Process the amended return as an original. Notate "Process as an original" on the top of the return. |
(2) In some cases, Document Perfection will receive Form 1120-IC-DISC with a "599" or "TC-599" in the margin. These forms are received by Collection from the taxpayer as proof that they have filed their return. It is possible that Collection asked the taxpayer to file a Form 1120 to meet the filing requirement on record with the IRS, since it was deleted when the taxpayer's Form 4876-A was approved.
Search the "Accepted" file or the "IC-DISC Data File" to verify the corporation is eligible to file Form 1120-IC-DISC.
Update the "IC-DISC Data File" to indicate a Form 1120-IC-DISC was received.
Route Form 1120-IC-DISC to Files.
Prepare Form 9856, Attachment Alert.
Use the Form 1120 DLN, EIN, name control, form, and Tax Period in the applicable boxes of Form 9856., Attachment Alert
If | Then |
|---|---|
An "Accepted" Form 4876-A is on file, | |
A Form 4876-A is not on file, the corporation is not eligible to file Form 1120-IC-DISC, | Follow Ineligible Filers procedures. |
Form 8404, Interest Charge on DISC-Related Deferred Tax Liability
(1) This subsection has instructions for Document Perfection handling of Form 8404, Interest Charge on DISC-Related Deferred Tax Liability. Form 8404 is filed by certain shareholders of IC-DISCs (or former IC-DISCs) to figure and report their interest owed on DISC-related deferred tax liability.
(2) Address - Ensure that a 5-digit ZIP Code is present. If it is not present, research the ZIP Code Directory and edit the right code. See Look Up a Zip Code.
(3) Tax Period - Ensure the tax year is in YYMM format and edited under the Office of Management and Budget (OMB) number of the form.
(4) Verify the taxpayer's computation of the interest charge amount following the instructions below. Edit any corrections needed.
Line 4 - Add Lines 1, 2, and 3. If the taxpayer has erroneously figured the income (sum of Lines 1, 2, and 3), correspond using Letter 599C, Request for more information for Form 1120-IC-DISC, Form 4876-A and Form 8404. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
Line 7 - Subtract Line 6 from Line 5.
Line 8 - If not present, and the return is a calendar year, 365-day return, edit the base period Treasury bill (T-Bill) rate factor as follows:
Line 9 - Multiply Line 7 by Line 8.
Flag the return.
Make a notation in the bottom margin of Form 8404 alerting NMF Accounting that additional interest needs to be assessed. Include the following in the notation:
The correctly computed Line 9 amount by multiplying Line 7 by Line 8.
The excess of the reported Line 9 amount (excess of the product of Lines 7 and 8).
Tax Year | Base Period T-Bill Rate |
|---|---|
2023 | .050531967 |
2022 | .017246634 |
2021 | .000800319 |
2020 | .007306546 |
2019 | .023470459 |
2018 | .020813051 |
2017 | .010151036 |
2016 | .005414566 |
2015 | .002402874 |
2014 | .001100604 |
Note: The entry on Line 8 of Form 8404 for a fiscal year filer is determined by an annual revenue ruling that is referenced in the instructions for Line 8.
Caution: SPECIAL TO LINE 9 (Interest Charge Due). If the amount on Line 9 exceeds the product of Line 7 multiplied by Line 8, it can be due to the inclusion of additional interest owed by the taxpayer to the Service. DO NOT "X" THIS AMOUNT. This might result in an erroneous refund to the taxpayer. Instead, do as follows:
If | Then |
|---|---|
Line 9 exceeds the product of Line 7 multiplied by Line 8, |
(5) Check for signature, correspond if missing. See (6) below for correspondence instructions.
(6) When corresponding with the taxpayer, correspond for all missing information using Letter 599C, Request for more information for Form 1120-IC-DISC, Form 4876-A and Form 8404 or Letter 131C, Information Insufficient or Incomplete for Processing Inquiry. DO NOT CORRESPOND MORE THAN ONCE. See IRM 3.11.16.3.4.2, Issuing Correspondence, for more information.
When corresponding for missing information only, advise the taxpayer the information requested is needed to complete processing of the return.
Advise the taxpayer additional interest was charged on the unpaid interest from the due date until the date the interest is paid.
(7) If there is no reply to correspondence, process the return using the information provided.
(8) If the Form 8404 Tax Period exceeds 12 months, allow the excess by creating a dummy Form 8404 to cover the excess months. Attach the dummied Form 8404 to the back of the original Form 8404 with a note explaining the circumstances and follow instructions in either (9) or (10), below, as correct. DO NOT IGNORE ANY TAXPAYER DATA.
(9) Send all other edited non-remit Form 8404 to the Numbering function.
(10) Send numbered with-remit Form 8404 to NMF Accounting.
(11) See Exhibit 3.11.16-21, Form 8404, Interest Charge on DISC-Related Deferred Tax Liability for an example of Form 8404.
Return Processing - Form 990-C
(1) All Form 990-C, Farmers' Cooperative Association Income Tax Returns, must be converted to Form 1120-C. Follow Form 1120-C procedures for processing Form 990-C.
(2) If a taxpayer files a Form 990-C, refer the return to the lead for conversion. Form 990-C has been obsolete since 2005.
Due Date Charts
(1) Public Law 114-41 changed the return due date for C Corporations to the 15th day of the fourth month following the close of the corporations tax year. The change affects all Forms 1120 except Form 1120-S, Form 1120-C and Form 1120-IC-DISC.
Exception: The due date for a corporation that ends its tax year on June 30 remains due on or before the 15th day of the third month.
Note: Certain non-farm Cooperative ("Co-Op") returns are filed on Form 1120 instead of the usual Cooperative Form 1120-C. These filers are entitled to a return due date of eight and one half months following the end of the tax year. See IRM 3.11.16.9.1.18, CCC "R" - Reasonable Cause for Failing to Timely File Return.
(2) New due dates are reflected in the tables below:
Due Date Chart for Forms 1120, 1120-F (Box D(3) checked), 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-SF, 1120-REIT, and 1120-RIC (Due by the 15th day of the 4th month after the Tax Period ends)Tax Period Ending Date | Return Due Date | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Extended Due Date, 6 - Months Exception: Fiscal filers with a Tax Period ending of June 30, have a 7 - month extension. |
|---|---|---|---|
Sept. 2024 | 1-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 7-15-2025 |
Oct. 2024 | 2-17-2025 | ≡ ≡ ≡ ≡ ≡ ≡ | 8-15-2025 |
Nov. 2024 | 3-17-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 9-15-2025 |
Dec. 2024 | 4-15-2025 | ≡ ≡ ≡ ≡ ≡ | 10-15-2025 |
Jan. 2025 | 5-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ | 11-17-2025 |
Feb. 2025 | 6-16-2025 | ≡ ≡ ≡ ≡ ≡ ≡ | 12-15-2025 |
Mar. 2025 | 7-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ | 1-15-2026 |
Apr. 2025 | 8-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 2-16-2026 |
May 2025 | 9-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ | 3-16-2026 |
Jun. 2025 | 9-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 4-15-2026 |
Jul. 2025 | 11-17-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 5-15-2026 |
Aug. 2025 | 12-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 6-15-2026 |
Sept. 2025 | 01-15-2026 | ≡ ≡ ≡ ≡ ≡ ≡ | 7-15-2026 |
Tax Period Ending Date | Return Due Date | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Extended Due Date, 6 - Months Exception: Form 1120-IC-DISC is not allowed an extension. Form 1120-C fiscal year filers with a Tax Period ending on June 30, have a 7 - month extension. |
|---|---|---|---|
Sept. 2024 | 6-16-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 12-15-2025 |
Oct. 2024 | 7-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 1-15-2026 |
Nov. 2024 | 8-15-2025 | ≡ ≡ ≡ ≡ ≡ | 2-17-2026 |
Dec. 2024 | 9-15-2025 | ≡ ≡ ≡ ≡ ≡ | 3-16-2026 |
Jan. 2025 | 10-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ | 4-15-2026 |
Feb. 2025 | 11-17-2025 | ≡ ≡ ≡ ≡ ≡ ≡ | 5-15-2026 |
Mar. 2025 | 12-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 6-15-2026 |
Apr. 2025 | 1-15-2026 | ≡ ≡ ≡ ≡ ≡ | 7-15-2026 |
May 2025 | 2-17-2026 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 8-17-2026 |
Jun. 2025 | 3-16-2026 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 10-15-2026 |
Jul. 2025 | 4-15-2026 | ≡ ≡ ≡ ≡ ≡ | 10-15-2026 |
Aug. 2025 | 5-15-2026 | ≡ ≡ ≡ ≡ ≡ ≡ | 11-16-2026 |
Sept. 2025 | 6-16-2026 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 12-15-2026 |
Tax Period Ending Date | Return Due Date | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | Extended Due Date, 6 - Months Exception: Fiscal filers with a Tax Period ending of June 30, have a 7 - month extension. |
|---|---|---|---|
Sept. 2024 | 3-17-2025 | ≡ ≡ ≡ ≡ ≡ ≡ | 9-15-2025 |
Oct. 2024 | 4-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 10-15-2025 |
Nov. 2024 | 5-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 11-17-2025 |
Dec. 2024 | 6-16-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 12-15-2025 |
Jan. 2025 | 7-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ | 1-15-2026 |
Feb. 2025 | 8-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 2-17-2026 |
Mar. 2025 | 9-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ | 3-16-2026 |
Apr. 2025 | 10-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 4-15-2026 |
May 2025 | 11-17-2025 | ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ | 5-15-2026 |
Jun. 2025 | 12-15-2025 | ≡ ≡ ≡ ≡ ≡ ≡ | 6-15-2026 |
Jul. 2025 | 1-15-2026 | ≡ ≡ ≡ ≡ ≡ ≡ | 7-15-2026 |
Aug. 2025 | 2-17-2026 | ≡ ≡ ≡ ≡ ≡ | 8-17-2026 |
Sept. 2025 | 3-16-2026 | ≡ ≡ ≡ ≡ ≡ | 9-15-2026 |
♦Routing Guide for Attachments♦
(1) Review all attachments to the tax return before the return can be considered processable.
Only detach attachments when specifically instructed.
Note: Consider a return or document an "original" if it has an original signature or has been stamped "Process as Original."
Edit Action Trail(s) (e.g., "2848 DETACHED") in the lower left corner of the return going vertically up the side of the return.
Note: Edit the name and EIN (if not present) on the detached document. Also, edit the return received date (e.g., Rec’d MM/DD/YY) in the lower left margin of the detached document before routing.
Caution: The Attachment Guide is included as an exhibit only for use in assisting in the identification of possible forms or conditions that require action or routing to other functions. The guide should not be used in place of the completed IRM section governing those conditions, since space limitations do not always allow for full instructions in the Attachment Guide.
(2) Follow the general guidelines below for each attachment:
Note: The reference to Form "1120 series" returns (or "All") include: Form 1120, Form 1120-C, Form 1120-F, Form 1120-FSC, Form 1120-H, Form 1120-L, Form 1120-ND, Form 1120-PC, Form 1120-REIT, Form 1120-RIC, and Form 1120-SF.
Form/Document | Applicable Return | Detach | Descriptions/Actions |
|---|---|---|---|
CP 259 or CP 959 (Spanish version) Note: Do not route to Statute Control Unit for clearance. See IRM 3.11.16.3.7, Statute Returns, for more information. | All | No | Correspondence is attached or taxpayer’s response indicates:
Then, Route to Compliance Services Collection Operations (CSCO). Use return address on CP notice:
Note: If the return is unsigned, but the taxpayer signed the CP notice under the jurat, it is not necessary to correspond for the signature. |
CP 259 A through h | All | No | OSPC BMF Entity |
CP 504/ CP 504B | All | No |
|
CP 518 Note: Do not route to Statute Control Unit for clearance. See IRM 3.11.16.3.7, Statute Returns, for more information. | All | No | Correspondence is attached or taxpayer’s response indicates:
Then, Route to Compliance Services Collection Operations (CSCO). Use return address on CP notice:
Note: If the return is unsigned, but the taxpayer signed the CP notice under the jurat, it is not necessary to correspond for the signature. |
For Tax Period 202201 -202212, if "IRA22DPE" or "IRA22TRE" is written on the return or attachments. | 1120 | No | See IRM 3.11.16.2.13, Elective or Deemed Payment Election and Credit Transfers |
Letters 112C, 282C, 2255C or 2284C Note: Do not route to Statute Control Unit for clearance. See IRM 3.11.16.3.7, Statute Returns, for more information. | All | No |
Note: If the return is unsigned, but the taxpayer has signed the letter under the jurat, it is not necessary to correspond for the signature. |
Letter 2030 | All | No | Put letter in front of return and route both to BMF Automated Underreporter (AUR) in Compliance. |
Includes tax liability for Multiple Tax Period or Types of Tax | All | No | • Numbered Return - Route to Rejects. |
Other Tax Returns (Original Signature) | All | Yes |
Exception: Subsidiary Returns attached to a consolidated return will NOT be detached. Conversions of Form 1120-S to Form 1120 will NOT be detached. |
Petitions in opposition of tax law provisions | All | Yes Note: Do not edit an action trail when detaching a petition. | Route to: |
IRC 965 Transition Tax Statement (or similar Language) | 1120 | No | Edit CCC "J" and Action Code "460" on the return and continue processing. Do not issue correspondence on the return. ERS will correspond for any missing information. |
Statement establishing Election to be subject to the Tonnage Tax Regime - Sect 1354 | All | No | Route a copy of the election to: |
Pro Forma Form 1120 for New York State or Blank (no tax data) Form 1120 with a Form 5472 attached | All | No | See IRM 3.11.16.11, Return Processing - Form 1120. |
Statement establishing Reasonable Cause for delinquent filing | All | No |
|
Remittance found | All | No | Immediately hand carry return and remittance to supervisor. |
Request for Acknowledgement | All | No | No action required. |
Request for e-File Waiver | 1120 | Yes | "Yes:" Ogden - Route request to: |
Requests for Installment Agreement | All | Yes | Route as follows:
|
Request for Form 8109, Deposit Slips, or Coupon Books | All | No | No action required. |
Request for Forms or Schedules | All | No |
Note: Use the write-in sections of Form 4190 and Form 6112 for all BMF forms and schedule requests. |
Request for Information or Inquiries | All | Yes |
|
Request for Adjustment to Another Document | All | Yes | Route to right function. Attachment must have Name, Address, EIN, and received date. Edit if missing. |
Request for Money Transfer | All | No/Yes |
|
State Tax Returns | All | Yes | Route to Receipt and Control (R&C). |
State Tax Returns Photocopy, facsimile or no signature | All | No | Leave attached. |
Indication of FINAL return | All | No | Enter CCC "F." |
NOTICES - Payment Agreement or Disagreement with notice amount | All |
| Follow local Submission Processing Center procedures. May involve inputting a STAUP and routing attachment to another function. |
Form SS-4, | All | Original - |
|
Schedule D, Form 1120 | 1120 | No | Form 1120
|
Schedule F (Form 1040), | 1120 | No | Transfer data to Form 1120. |
Schedule M-3 (Form 1120), | 1120 | No |
|
Schedule N (Form 1120), | 1120 | No |
|
Schedule O (Form 1120), | 1120 | No | Follow the instructions below for Tax Period 201811 and prior only:
|
Schedule PH (Form 1120), | 1120 | No | Edit ABLM Code "001." |
Schedule UTP (Form 1120), | 1120 | No |
|
Form T (Timber), | All | No | No action required. |
Form 56, | All | Yes |
|
Form 433-B, | All | Yes | Route as follows:
|
Form 433-D, | All | Yes | Route as follows:
|
Form 637, | All | Yes/No |
|
Form 843, | All | Yes |
|
Form 851, | 1120 | No |
|
Form 872, | 990-C | Original | Original that is not signed by the Area Director - |
Form 911, | All | Yes | Send to Taxpayer Advocate Service (TAS). |
Form 926, | 1120 | No | Edit Audit Code "2." |
Form 965, Inclusion of Deferred Foreign Income Upon Transition to Participation Exemption System | 1120 | No | Edit CCC "J" and Action Code "460" on the return and continue processing. Do not issue correspondence on the return. ERS will correspond for any missing information. |
Form 965,
| 1120 | No | For Tax Period 201712 through 202012, edit CCC "J" and Action Code "460" on the return and continue processing. Do not issue correspondence on the return. ERS will correspond for any missing information. |
Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts | 1120 | No | Form 1120, Form 1120-L, Form 1120-PC,Form 1120-RIC: |
Form 966, | All | No | Possible CCC "F." |
Form 1042, | All | Yes |
|
Form 1042-S, | All | No |
|
Form 1096, | All | Yes | Route to Receipt and Control. |
Form 1099, | All | Yes | Route to Receipt and Control. |
Form 1116, | 1120 | No | Form 1120
|
Form 1118, | 1120 | No | Form 1120:
|
Form 1120-POL, | All | Yes | Route to OSPC. |
Form 1120-X, | All | No | Route the entire return to Accounts Management. |
Form 1122, | 1120 | No |
|
Form 1125-A, Cost of Goods Sold | All | No | See IRM 3.11.16.11.4.2, Line 2 - Cost of Goods Sold and IRM 3.11.16.18 Form 1125-A - Cost of Goods Sold. |
Form 1128, | All |
|
|
Form 1138, | All | Yes |
|
Form 1139, | 1120 |
Note: If multiple Tax Period are present, route with one Form 1139. | |
Form 2220, | 1120 Series Exception: Form 1120-H, Reserve Code "4" does not apply. | No |
|
Form 2438, | All | No | No action required. |
Form 2439, | 1120 | No |
|
Form 2553, | All | Yes/No |
|
Form 2848, | All | Yes/No | Route as follows:
|
Form 3115, | All | No | Form 1120:
|
Form 3468, | 1120 | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 3520, | All | Original - | Original: |
Form 3753, | All | No | Possible CCC "O." |
Form 3800, | 1120 | No | Form 1120:
|
Form 3949, | All | Yes |
|
Form 3949-A, | All | Yes | Route as follows:
Kansas City -
|
Form 4136, | 1120 | No |
|
Form 4255, | 1120 | No | Form 1120:
|
Form 4466, | All | No | No action required. |
Form 4571, | All | No | No action required. |
Form 4626, Alternative Minimum Tax (2023 revision and later) | 1120 | No | Form 1120:
|
Form 4626, | All | No | Follow the instructions below for Tax Period 201811 and prior only:
|
Form 4684. | 1120 Series | No | See IRM 3.11.16.11.4.8, Line 9 - Net Gain or Loss from Form 4797. |
Form 4797, | 1120 | No | Support for Form 1120, Line 9 (or applicable line on other corporate returns). |
Form 4810, | All | Yes/No | Yes: TC 150 Not Posted: |
Form 4848, | All | Yes | Route to Files. |
Form 5471, | 1120 | No | Edit Audit Code "2." |
Form 5471, Schedule E, Income, War Profits, and Excess Profits Taxes Paid or Accrued, | 1120 | No | Edit RPC "A." See IRM 3.11.16.9.2, Return Processing Code (RPC). |
Form 5471, Schedule G-1, Cost Sharing Arrangement, | 1120 | No | Edit RPC G. |
Form 5471, Schedule H, Current Earnings and Profits, | 1120 | No | Edit RPC "B." See IRM 3.11.16.9.2, Return Processing Code (RPC). |
Form 5471, Schedule I-1, Information for Global Intangible Low-Taxed Income, | 1120 | No | Edit RPC "C." See IRM 3.11.16.9.2, Return Processing Code (RPC). |
Form 5471, Schedule P, Previously Taxed Earnings and Profits of U.S. Shareholder of Certain Foreign Corporations, | 1120 | No | Edit RPC "D." See IRM 3.11.16.9.2, Return Processing Code (RPC). |
Form 5472, | 1120 | No | Form 1120:
|
Form 5500, | All | Yes | Route to the right area or Submission Processing Center. Attach Form 4227, Intra-SC Reject or Routing Slip with the following information:
|
Form 5713, | All | No | Keep original and copy attached. |
Form 5735, | 1120 | No | Supports Schedule J, Line 5b (or applicable line). |
Form 5792, | All | No | Possible CCC "O." |
Form 5884, | All | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 5884-A | All | No | No Action Required. |
Form 5884-B, | 1120 | No | For 2010 and 2011, place in sequence order if a significant entry is present on Line 10 or 11. |
Form 6252, | 1120 | No | Form 1120: Sequence Form 6252 if transcription lines are present. See IRM 3.11.16.26 - Form 6252 - Installment Sale Income. |
Form 6478, | All | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 6765, | All | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 6781, | All | No | Form 1120, 1120-C, 1120-F, 1120-L, 1120-PC: |
Form 7004, | All | Yes/No | Yes: If Form 7004 is for other than the tax return or Tax Period being filed, route to Receipt and Control. |
Form 7204, Consent To Extend the Time To Assess Tax Related To Contested Foreign Income Taxes— Provisional Foreign Tax Credit Agreement. | 1120 | No | Edit RPC L. See IRM 3.11.16.9.2, Return Processing Code (RPC). |
Form 7205, Energy Efficient Commercial Buildings Deduction. | 1120 | No | Edit RPC M. See IRM 3.11.16.9.2, Return Processing Code (RPC). |
Form 7207, Advanced Manufacturing Production Credit. | 1120 | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 7208, Excise Tax on Recapture of Corporate Stock | 1120 | No | No Action Required |
Form 8023, |
| No | Possible indication of Proof of Entitlement for a Short Period. |
Form 8027, |
| Yes | Route to Ogden Submission Processing Center. |
Form 8050, | 1120 | No | Place in page order if entries are present, and continue processing. |
Form 8082, | 1120-C | No | No action required. |
Form 8275, | 1120-C | No | No action required. |
Form 8283, | 1120 | No |
|
Form 8288, | All | Original - | Original:Ogden - Route to C&E Foreign/FIRPTA Team. |
Form 8288-A, | All | No | Ogden - Route to C&E Foreign/FIRPTA Team. |
Form 8288-B, | All | Original - | Original - Ogden - Route to C&E Foreign/FIRPTA Team. |
Form 8302, | 1120-C | No | Notate "Form 8302 attached" on Form 4227, Intra-SC Reject or Routing Slip and: |
Form 8404, | All | Yes | KSPC: Route to R&C. |
Form 8586, | 1120 | No | Possible CCC "9." |
Form 8594, | 1120 | No | Edit Audit Code "3" if Form 8594 has an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ in Box 3. |
Form 8609, | 1120 | No | Edit CCC "9." |
Form 8611, | 1120 | No | Form 8611and 4255 amounts are included in Other Taxes. See IRM 3.11.16.11.24.2, |
Form 8613 | Form 1120-REIT | Yes | Route as follows:
|
Form 8621, | 1120 | No | Edit Audit Code "2" if Part V, Line 15a-16f has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. |
Form 8697(Refund), | All | Yes | Edit Tax Period and EIN on Form 8697 and route to AM if a refund is shown on Part I, Line 9 or Part II, Line 10 of Form 8697. |
Form 8697(Balance Due), | 1120 | No | Possible CCC "K." |
Form 8716, | 1120 Series | No | If "ACCEPTED," edit CCC "Y." |
Form 8752, | All | Yes/No | Kansas City and Ogden: |
Form 8816, | 1120, | No | Refer to IRC 847 Deduction instructions if the Tax Period is 201812 and prior and there are entries on: |
Form 8820, | All | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8821, | All | Yes/No | Route as follows: Note: No action is required if a "General Power of Attorney," "Durable Power of Attorney," or "Tax Information Authorization(TIA) "is submitted on any document other than Form 2848 or Form 8821. |
Form 8822, | All | Yes/No | Yes: Route Form 8822 or Form 8822-B to Entity if any of the following applies:
|
Form 8824, | 1120 | No | Edit CCC "1" if Form 8824 is attached. |
Form 8825, | All | No | No action required. |
Form 8826, | All | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8827, | All | No | Credit is valid for Tax Period 8812 and later. |
Form 8830, | All | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8831, | 1120-REIT | Yes | Route as follows:
|
Form 8832, | 1120 | No |
|
Form 8833, | 1120 | No | For Forms 1120, 1120-C, 1120-F, 1120-FSC, 1120-L, 1120-PC, 1120-REIT and 1120-RIC: Edit CCC "L." |
Form 8834, | All | No | See IRM 3.11.16.11.20.2, Schedule J, Line 5b - Form 8834 Credit and Form 5735. |
Form 8835, | All | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8842, | All | No | No action required. |
Form 8844, | 1120 | No |
|
Form 8845, | All | No | No Action Required. |
Form 8846, | All | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8858, | 1120 | No | Edit Audit Code "2." |
Form 8864, | All | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8865, | 1120 | No | Edit Audit Code "2." |
Form 8865, Schedule G, Statement of Application for the Gain Deferral Method Under Section 721(c) | All | No | Edit RPC "E." See IRM 3.11.16.9.2, Return Processing Code (RPC). |
Form 8865, Schedule H, Acceleration Events and Exceptions Reporting Relating to Gain Deferral Method Under Section 721(c) | All | No | Edit RPC "F." See IRM 3.11.16.9.2, Return Processing Code (RPC). |
Form 8866 (Refund), | All | Yes | Edit Tax Period and EIN on Form 8866 and route to AM if a refund is shown on Line 9, Form 8866. |
Form 8866 (Balance Due), | All | No | If an amount is present on Form 8866, Line 10, edit the amount to Form 1120, Schedule J, Line 9d. |
Form 8869, | All | Original | Original |
Form 8870, | All | Yes | Route to: |
Form 8871, | All | Yes | Route to Receipt and Control to be re-batched. |
Form 8872, | All | Yes | Route to Receipt and Control to be re-batched. |
Form 8873, | ALL | No | Forms 1120, 1120-C. 1120-L, 1120-PC, 1120-REIT and 1120-RIC, |
Form 8874, | All | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8875, | All | Yes/No | KSPC and OSPC: |
Form 8881, | All | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8882, | All | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8883, | 1120 | No | Forms 1120, 1120-PC, Form 1120-REIT and 1120-RIC: |
Form 8886, | All | No | Edit CCC "T" and Edit Audit Code "1." |
Form 8896, |
| No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8900, | All | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8902, | 1120 | No | Edit Audit Code "2." |
Form 8903, | 1120 | No | Support for Line 25, Form 1120. |
Form 8904, | 1120 | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit . |
Form 8906, | All | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8907, | All | No | No Action Required. |
Form 8908, | 1120 | No | Form 1120:
|
Form 8910, Note: This credit expired in 202411. | 1120 | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8911, | All | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8912, | All | No | See |
Form 8923, | 1120 | No | No Action Required. |
Form 8931, Agricultural Chemicals Security Credit | 1120 | No | No Action Required. |
Form 8932, Credit for Employer Differential Wage Payments | 1120 | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8933, | 1120 | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8936, | 1120 | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8936-A, Qualified Commercial Clean Vehicle Credit | 1120 | No | See IRM 3.11.16.11.21, Schedule J, Line 5c - General Business Credit. |
Form 8936, Schedule A | 1120 |
| See IRM 3.11.16.27, Form 8936, Schedule A, Clean Vehicle Credit. |
Form 8938, | 1120 | No | Edit CCC "2" if attached. See IRM 3.11.16.11.47.10, Schedule N, Line 8 - Form 8938, Statement of Specified Foreign Financial Assets |
Form 8941, | 1120 | No | Place in sequence order if significant entries are present. See IRM 3.11.16.22, Form 8941 - Credit for Small Employer Health Insurance Premiums. |
Form 8949, Sales and Other Dispositions of Capital Assets | All | No | Forms 1120, 1120-F, 1120-REIT and 1120-RIC: Sequence Form 8949. |
Form 8978 - Partner’s Additional Reporting Year Tax and Form 8978, Schedule A, Partners Additional Reporting Year Tax (Schedule of Adjustments), |
| No | Sequence Form 8978 on forms: |
Form 8990, Limitation on Business Interest Expense IRC 163(j) | 1120 | No | Edit RPC "7." |
Form 8991, Tax on Base Erosion Payments of Taxpayers with Substantial Gross Receipts | 1120 | No | Form 1120: See IRM 3.11.16.11.16, Schedule J, Line 3 - Alternative Minimum Tax or Base Erosion Minimum Tax and IRM 3.11.16.9.2, Return Processing Code (RPC). |
Form 8992, U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI) | 1120 | No | Edit RPC "2," See IRM 3.11.16.9.2, Return Processing Code (RPC). |
Form 8993, Section 250 Deduction for Foreign- Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI) | 1120 | No | Edit RPC "3." See IRM 3.11.16.9.2, Return Processing Code (RPC). |
Form 8994, | 1120 | No | See IRM 3.11.16.9.2, Return Processing Code (RPC). |
Form 8996,Qualified Opportunity Fund | 1120 | No | Sequence Form 8996 if significant entries are present.
|
Form 8997,Initial and Annual Statement of Opportunity Fund (QOF) Investments, is attached. | 1120 | No | Form 1120: and Form 1120-F: See IRM 3.11.16.25, Form 8997 - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments. |
Form 9358, | All | Yes | Route to SC Collections. |
Form 9465, | All | Yes | Route as follows:
|
Form 12857, | All | No | Possible CCC "O." |
Form 14039-B, Business Identity Theft Affidavit | All | No | If a specific function is shown by the envelope address or an IRS CP notice or IRS letter, place the Form 14039-B on top and route Form 14039-B and the return to the specific function.
|
Form 14157, Complaint: Tax Return Preparer | All | Yes | Route to: |
Terms/Definitions/Acronyms
(1) For Terms, Definitions and acronyms see the following tables:
Interpretation WordsWord | Definition | Example |
|---|---|---|
Fair | Accurate and professional service to all persons without regard to personal bias. | Taxpayers have the right to expect a fair and just tax system. |
Significant entry | Any entry other than zero or blank. | If line 1 has a significant entry, edit CCC A. |
Usually | Exceptions when something is not required or what would create the unusual circumstance. | A return for a Political Organization can usually be determined by the name. |
Timely | Coming early or at the right time. | Taxpayers have the right to receive help from the Taxpayer Advocate Service (TAS) if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through normal channels. |
Acronyms and Abbreviations | Definition |
|---|---|
ACE | Adjusted Current Earning |
ADP | Automatic Data Processing |
AM | Accounts Management |
AMRH | Accounts Maintenance Research |
AMTI | Alternative Minimum Taxable Income |
APO | Army Post office |
AUR | Automated Underreporter |
BMF | Business Master File |
C&E | Code and Edit |
CC | Chief Counsel |
CCC | Computer Condition Code |
CDP | Collection Due Process |
CI | Criminal Investigation |
CII | Correspondence Imaging Inventory |
C/O | Care of |
CP | Computer Paragraph |
CRN | Credit Reference Number |
CSCO | Compliance Services Collection Operations |
CTW | Chapter Three Withholding |
DLN | Document Locator Number |
DPO | Diplomatic Post Office |
DPO | Document Perfection Operation |
EEFax | Enterprise Electronic Fax |
E-File | Electronic Filing |
e.g. | For Example |
EIN | Employer Identification Number |
ERS | Error Resolution System |
etc. | Et Cetera |
Exam | Examination |
FAX | Facsimile |
FIRPTA | Foreign Investment in Real Property Tax Act |
FDII | Foreign Derived Intangible Income |
FPO | Fleet Post Office |
FPP | Foreign Payments Practice |
FRP | Frivolous Return Program |
FTF | Failure To File |
ICS | Integrated Collection System |
ICT | Image Control Team |
ID | Identification or Identity |
IDRS | Integrated Data Retrieval System |
IMF | Individual Master File |
IRC | Internal Revenue Code |
IRS | Internal Revenue Service |
ISRP | Integrated Submission and Remittance Processing |
ITIN | IRS Individual Taxpayer Identification Number |
KSPC | Kansas City Submission Processing Center |
LB&I | Large Business and International |
MeF | Modernized Electronic Filing |
MFT | Master File Tax |
MMDDYY | Month Month Day Day Year Year |
NAICS | North American Industry Classification System |
NCOA | National Change of Address |
NMF | Non-Master File |
N/A | Not Applicable |
OC | Other Country |
OID | Original Issue Discount |
OMB | Office of Management and Budget |
OSPC | Ogden Submission Processing Center |
PBA | Principal Business Activity |
PTIN | Preparer Tax Identification Number |
P.O. | Post Office |
QOF | Qualified Opportunity Fund |
R&C | Receipt and Control |
Rec’d | Received |
RO | Revenue Officer |
RPC | Return Processing Code |
SB/SE | Small Business/Self-Employed |
SCAMPS | Service Center Automated Mail Processing System |
SERP | Servicewide Electronic Research Program (SERP) |
SETP | Special Estimated Tax Payments |
SFR | Substitute for Return |
SLA | Service Level Agreement |
SOI | Statistics of Income |
SP | Submission Processing |
SSN | Social Security Number |
TAC | Taxpayer Assistance Center |
TAS | Taxpayer Advocate Service |
T-Bill | Treasury Bill |
TBOR | Taxpayer Bill of Rights |
TC | Transaction Code |
TE | Tax Examiner |
TEGE | Tax Exempt Government Entities |
TIA | Tax Information Authorization |
TPE | Tax Period Ending |
TS | Taxpayer Services Note: April 2024, Wage and Investment (W&I) changed to Taxpayer Services. |
TY | Tax Year |
UCC | Uniform Commercial Code |
U.S. | United States |
USPS | United States Postal Service |
ZIP | Zone Improvement Plan |
♦Potential Frivolous Arguments for Examination Review♦
Potential Frivolous Argument | Description |
|---|---|
Alleged Churches/First Amendment | Income from non-religious sources and may claim a vow of poverty. |
Altered Form | Altering any or all line items with the intent of facilitating non-compliance with the tax laws. |
Altered Jurat/UCC (Uniform Commercial Code) 1-207 or UCC 1-308. | Return has income and deductions but the jurat was altered or stricken. May include reference to UCC 1-207/ UCC 1-308 or a statement that the return was not signed under penalties of perjury. |
Amended Returns/Form 843 Claim | Amended return or a Form 843 filed to obtain a total refund of all taxes paid in prior years, based on a tax avoidance argument. |
C-Fillings | This frivolous position includes the following four categories:
|
Challenges to Authority/Due Process | Questions several administrative authorities such as delegation orders, summons authority, Privacy Act, etc. Argues that they must be afforded a hearing or a trial before taxes can be assessed or before property can be seized. |
Challenges to Authority/Title 26 or "law" in Other Documents | Argues that Title 26 of the United States Code is not law because it was never enacted as named. |
Collections Issues | Files frivolous documents contending that several collections issues are invalid (e.g., Offers in Compromise, Collection Due Process Requests, Installment Agreements, Appeals Requests) because they are not filed and signed by someone with delegated authority. They may have no certificate of assessment attached, do not comply in form or content with a State or Local law, are not in a certain format or lack a valid OMB (Office of Management and Budget) number or other frivolous positions. |
Disclaimer | Submits a disclaimer stating, "disclaims the liability for the tax due," making the liability on the return zero. |
Fifth Amendment | Assertion of the Fifth Amendment right against self-incrimination as a basis for not providing any financial information. |
Foreign Income | Argues that United States citizens and residents are not subject to tax on their wages or other income derived from sources within the United States, as only foreign-based income or income received by nonresident aliens and foreign corporations from sources within the United States is taxable. |
Form 1099-OID (Original Issue Discount) | An individual or business files a return reporting false amounts of income (generally "Other" or "Miscellaneous" income) and claims a false amount of income tax withholding approximately equal to the amount of falsely reported income. Although the returns report income, they do not calculate any tax due. Some of the returns have Form 1099-OID (Original Issue Discount) attached and some have Form 1096. Other false forms or financial instruments may be filed in the place of or in addition to the Form 1099-OID such as Form 2439, promissory notes, bonds, sight drafts, etc. |
IRC 861 Business Employment Tax (BMF 861) | Argument targets employers and advises them that wages are exempt from withholding. Based on 26 Code of Federal Regulations (CFR) Section 1.861, promoters of this scheme advise employers to stop withholding and paying payroll taxes on their employee's wages. In addition, some employers file amended payroll tax returns and request refunds of previously paid payroll taxes. |
IRS is a Private Organization/Collects Tribute, Not Taxes | Argues that the IRS is an entity named the Internal Revenue and Tax Service, Inc., which was incorporated in Delaware in 1933, it is a collection agency for the Federal Reserve Bank, or is part of the United Nations and is clandestinely leading the tax-paying public into a "new world order." |
Not a Person | Argues that a taxpayer is not a "person" within the meaning of IRC 7701(a)(14). |
Obscene, Vulgar, Harassing | Submits documents or other materials showing that non-filing is due to dissatisfaction with tax policies or taxation in general. Often, this argument is expressed with obscene, vulgar, or crude language and characters in an extremely demeaning manner. |
Protest Against Government Action/Inaction | Argues that refusal to file or pay is justified because they disagree with government policies or spending plans. |
Sixteenth Amendment | Argues the Sixteenth Amendment was not properly ratified and therefore the federal government does not have the legal authority to collect an income tax without apportionment. |
Straw Men | Argues the government has created an entity separate and distinct from the taxpayer - a "straw man" and any tax obligations are exclusively those of the "straw man." |
Taxes are Voluntary/Law Does Not Require | Submits a return, amended return or correspondence that argues income taxes are voluntary. |
U.S. v. Long | Submits a return with zero money amounts. To explain the zeros inserted on the return, the individual references "U.S. v. Long." |
Unsigned Returns | The individual completes a return but does not sign a statement showing disagreement with the tax system is attached or added to the return. |
Valuation | Income is not taxable because of the declining fair market value of the dollar, because the dollar is not backed by gold/silver, because the value of services is offset by the value of the labor (barter income), etc. |
Zero Returns | Submits a return with zero money amounts on all or most line items on the form (e.g., IRC 861, Form 2439, OID and other BMF filings that claim no income and request refunds). See Revenue Ruling 2004-34. A statement is attached claiming there is no section of the Internal Revenue Code that established an income tax liability. The statement may also have arguments regarding the definition of income. There are several variations on this type of filing such as those bearing the words "nunc pro tunc" and "not liable." Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡"≡"≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ |
Other | All others including those in Notice 2010-33 or any later superseding Notice. See also http://www.irs.gov/Tax-Professionals/The-Truth-About-Frivolous-Tax-Arguments-Introduction on irs.gov. This category includes non-filer accounts resulting from initial compliance check such as cross-reference TINs. Note: Frivolous arguments citing "Collection Due Process" (CDP) must be reviewed by Collections for possible referral to Appeals. Refer to IRM 5.19.8, Collection Appeal Rights, for more information. |
U.S. Possessions ZIP Codes
American Samoa (AS) City | American Samoa (AS) ZIP Code |
|---|---|
Faga'itua | 96799 |
Leone | 96799 |
Olosega Manua' | 96799 |
Pago Pago | 96799 |
Federated States of Micronesia (FM) City | Federated States of Micronesia (FM) ZIP Code |
|---|---|
Chuuk | 96942 |
Kosrae | 96944 |
Pohnpei | 96941 |
Yap | 96943 |
Guam (GU) City | Guam (GU) ZIP Code |
|---|---|
Agana | 96910 |
Inarajan | 96917 |
Merizo | 96916 |
Tamuning | 96931 |
Umatac | 96915 |
Yona | 96915 |
Marshall Islands (MH) City | Marshall Islands (MH) ZIP Code |
|---|---|
Ebeye | 96970 |
Majuro | 96960 |
Northern Marianna Islands (MP) City | Northern Marianna Islands (MP) ZIP Code |
|---|---|
Capitol Hill | 96950 |
Rota | 96951 |
Saipan | 96950 |
Tinian | 96952 |
Palau (PW) City | Palau (PW) ZIP Code |
|---|---|
Koror | 96940 |
Palau | 96940 |
Puerto Rico (PR) City | Puerto Rico (PR) ZIP Code |
|---|---|
Adjuntas | 00601 |
Aguada | 00602 |
Aguadilla | 00603 |
Aguas Buenas | 00703 |
Aguirre | 00704 |
Aibonito | 00705 |
Anasco | 00610 |
Angeles | 00611 |
Arecibo | 00612 |
Arroyo | 00714 |
Bajadero | 00616 |
Barceloneta | 00617 |
Barranquitas | 00794 |
Barrio Obrero Station | 00935 |
Bayamon | 00956 |
Boqueron | 00622 |
Cabo Rojo | 00623 |
Caguas | 00725 |
Camuy | 00627 |
Canovanas | 00729 |
Caparra Heights | 00920 |
Carolina | 00982 |
Catano | 00962 |
Cayey | 00736 |
Ceiba | 00735 |
Cerro Gordo | 00754 |
Ciales | 00638 |
Cidra | 00739 |
Coamo | 00769 |
Comerio | 00782 |
Condado | 00907 |
Corozal | 00783 |
Coto Laurel | 00780 |
Culebra | 00775 |
Dorado | 00646 |
Ensenada | 00647 |
Esperanza | 00765 |
Fajardo | 00738 |
Fernandez Juncos | 00936 |
Florida | 00650 |
Fort Buchanan | 00934 |
Garrachales | 00652 |
Guanica | 00653 |
Guayama | 00784 |
Guayanilla | 00656 |
Guaynabo | 00965 |
Gurabo | 00778 |
Hatillo | 00659 |
Hato Rey | 00936 |
Hormigueros | 00660 |
Humacao | 00791 |
Isabela | 00662 |
Jayuya | 00664 |
Juana Diaz | 00795 |
Juncos | 00777 |
La Cumbre | 00926 |
Lajas | 00667 |
La Plata | 00786 |
Lares | 00669 |
Las Marias | 00670 |
Las Piedras | 00771 |
Levittown | 00949 |
Loiza | 00772 |
Loiza Street Station | 00936 |
Luquillo | 00773 |
Manati | 00674 |
Maricao | 00606 |
Maunabo | 00707 |
Mayaguez | 00680 |
Mercedita | 00715 |
Minillas Center | 00936 |
Moca | 00676 |
Morovis | 00687 |
Naguabo | 00718 |
Naranjito | 00719 |
Orocovis | 00720 |
Palmer | 00721 |
Patillas | 00723 |
Penuelas | 00624 |
Ponce | 00731 |
Puerta de Tierra | 00936 |
Puerta Real | 00740 |
Punta Santiago | 00741 |
Quebradillas | 00678 |
Ramey | 00603 |
Rincon | 00677 |
Rio Blanco | 00744 |
Rio Grande | 00721 |
Rio Piedras | 00927 |
Rosario | 00636 |
Sabana Grande | 00637 |
Sabana Hoyos | 00688 |
Sabana Seca | 00952 |
Saint Just | 00978 |
Salinas | 00751 |
San Antonio | 00690 |
San Francisco | 00927 |
San German | 00683 |
San Juan | 00936 |
San Lorenzo | 00754 |
San Sebastian | 00685 |
Santa Isabel | 00757 |
Santurce | 00936 |
Toa Alta | 00953 |
Toa Baja | 00949 |
Trujillo Alto | 00976 |
University | 00936 |
Utuado | 00641 |
Vega Alta | 00692 |
Vega Baja (Box 1 - 9049) | 00694 |
Vieques | 00765 |
Villalba | 00766 |
Yabucoa | 00767 |
Yauco | 00698 |
Virgin Islands - U.S. (VI) City | Virgin Islands - U.S. (VI) ZIP Code |
|---|---|
Charlotte Amalie | 00802 |
Christiansted | 00820 |
Cruz Bay | 00830 |
Downtown | 00840 |
Frederiksted | 00840 |
Kingshill | 00850 |
Saint Croix | 00820 |
Saint John | 00830 |
Saint Thomas | 00805 |
Sunny Isle | 00850 |
Veterans Annes | 00820 |
Province, Foreign State and Territory Abbreviations
Australia State | Abbreviation |
|---|---|
Australian Capital Territory | ACT |
New South Wales | NSW |
Northern Territory | NT |
Queensland | QLD |
South Australia | SA |
Tasmania | TAS |
Victoria | VIC |
Western Australia | WA |
Brazil State | Abbreviation |
|---|---|
Acre | AC |
Alagoas | AL |
Amapa | AP |
Amazonas | AM |
Bahia | BA |
Ceara | CE |
Distrito Federal | DF |
Espirito Santo | ES |
Goias | GO |
Maranhao | MA |
Mato Grasso | MT |
Mato Grosso do Sul | MS |
Minas Gerais | MG |
Para | PA |
Paraiba | PB |
Parana | PR |
Pernambuco | PE |
Piaui | PI |
Rio de Janeiro | RJ |
Rio Grande do Norte | RN |
Rio Grande do Sul | RS |
Rondonia | RO |
Roraima | RR |
Santa Catarina | SC |
Sao Paulo | SP |
Sergipe | SE |
Tocantins | TO |
Canada Province/Territory | Abbreviation |
|---|---|
Alberta | AB |
British Columbia | BC |
Manitoba | MB |
New Brunswick | NB |
Newfoundland and Labrador | NL |
Northwest Territories | NT |
Nova Scotia | NS |
Nunavut | NU |
Ontario | ON |
Prince Edward Island | PE |
Quebec | QC |
Saskatchewan | SK |
Yukon | YT |
Cuba Province | Abbreviation |
|---|---|
Camaguey | CG |
Ciego de Avila | CA |
Cienfuegos | CF |
Ciudad de La Habana | CH |
Granma (Bayamo) | GR |
Guantanamo | GT |
Holguin | HO |
La Habana | HA |
Matanzas | MT |
Municipio Especial Isla de La Juventud | IJ |
Pinar del Rio | PR |
Sancti Spiritus | SS |
Santiago de Cuba | SC |
(Victoria de) Las Tunas | LT |
Villa Clara | VC |
Italy Province | Abbreviation |
|---|---|
Agrigento | AG |
Alessandria | AL |
Ancona | AN |
Aosta/Aoste | AO |
Arezzo | AR |
Ascoli Piceno | AP |
Asti | AT |
Bari | BA |
Belluno | BL |
Benevento | BN |
Bergamo | BG |
Biella | BI |
Bologna | BO |
Bolzano Bozen | BZ |
Brescia | BS |
Brindisi | BR |
Cagliari | CA |
Caltanissetta | CL |
Campobasso | CB |
Caserta | CE |
Catania | CT |
Catanzaro | CZ |
Chieti | CH |
Como | CO |
Cosenza | CS |
Cremona | CZ |
Crotone | KR |
Cuneo | CV |
Enna | EN |
Ferrara | FE |
Firenze | FI |
Foggia | FG |
Forli | FO |
Frosinone | FR |
Genoa | GE |
Gorizia | GO |
Grosseto | GR |
Imperia | IM |
Isernia | IS |
L'Aquila | AQ |
La Spezia | SP |
Latina | LT |
Lecce | LE |
Livorno | LI |
Lodi | LO |
Lucca | LU |
Macerata | MC |
Mantova | MN |
Massa-Carrara | MS |
Matera | MT |
Messina | ME |
Milan | MI |
Modena | MO |
Napoli | NA |
Novara | NO |
Nuoro | NU |
Oristano | OR |
Padova | PD |
Palermo | PA |
Parma | PR |
Pavia | PV |
Perugia | PG |
Pesaro-Urbino | PS |
Pescara | PE |
Piacenza | PC |
Pisa | PI |
Pistoia | PT |
Pordenone | PN |
Potenza | PZ |
Prato | PO |
Ragusa | RG |
Ravenna | RA |
Reggio de Calabria | RC |
Reggio nell'Emilia | RE |
Rieti | RI |
Rimini | RN |
Roma | RM |
Rovigo | RO |
Salerno | SA |
Sassari | SS |
Savona | SV |
Siena | SI |
Siracusa | SR |
Sondrio | SO |
Taranto | TA |
Teramo | TE |
Terni | TR |
Torino | TO |
Trapani | TP |
Trento | TN |
Treviso | TV |
Trieste | TS |
Udine | UD |
Varese | VA |
Venezia | VE |
Verbania | VB |
Vercelli | VC |
Verona | VR |
Vibo Valentia | VV |
Vicenza | VI |
Viterbo | VT |
Mexico State | Abbreviation |
|---|---|
Aguascalientes | AGS |
Baja California Norte | BCN |
Baja California Sur | BCS |
Campeche | CAM |
Chiapas | CHIS |
Chihuahua | CHIH |
Coahuila | COAH |
Colima | COL |
Distrito Federal | DF |
Durango | DGO |
Guanajuato | GTO |
Guerrero | GRO |
Hidalgo | HGO |
Jalisco | JAL |
Mexico | MEX |
Michoacan | MICH |
Morelos | MOR |
Nayarit | NAY |
Nuevo Leon | NL |
Oaxaca | OAX |
Puebla | PUE |
Queretaro | QRO |
Quintana Roo | QROO |
San Luis Potosi | SLP |
Sinaloa | SIN |
Sonora | SON |
Tabasco | TAB |
Tamaulipas | TAMPS |
Tlaxcala | TLAX |
Veracruz | VER |
Yucatan | YUC |
Zacatecas | ZAC |
The Netherlands Province | Abbreviation |
|---|---|
Drenthe | DR |
Flevoland | FLD |
Friesland | FR |
Gelderland | GLD |
Groningen | GN |
Limburg | LB |
North Brabant | NB |
North Holland | NH |
Overijssel | OV |
South Holland | ZH |
Ultrecht | UT |
Zeeland | SLD |
Area Office Codes
(1) The following table provides a list of Area Office Codes.
State | Abbreviation | Area Office |
|---|---|---|
Alabama | AL | 08 |
Alaska | AK | 12 |
Arizona | AZ | 11 |
Arkansas | AR | 08 |
California Note: California is the only state that has been broken out by post of duty and is covered by Areas 13, 14, and 16. | CA | 13 |
|
| 14 |
|
| 16 |
Colorado | CO | 11 |
Connecticut | CT | 01 |
Delaware | DE | 04 |
District of Columbia | DC | 04 |
Florida | FL | 05 |
Georgia | GA | 08 |
Hawaii | HI | 12 |
Idaho | ID | 12 |
Illinois | IL | 07 |
Indiana | IN | 07 |
Iowa | IA | 09 |
Kansas | KS | 09 |
Kentucky | KY | 06 |
Louisiana | LA | 08 |
Maine | ME | 01 |
Maryland | MD | 04 |
Massachusetts | MA | 01 |
Michigan | MI | 06 |
Minnesota | MN | 09 |
Mississippi | MS | 08 |
Missouri | MO | 09 |
Montana | MT | 11 |
Nebraska | NE | 09 |
Nevada | NV | 11 |
New Hampshire | NH | 01 |
New Jersey | NJ | 03 |
New Mexico | NM | 11 |
New York | NY | 02 |
North Carolina | NC | 04 |
North Dakota | ND | 09 |
Ohio | OH | 06 |
Oklahoma | OK | 10 |
Oregon | OR | 12 |
Pennsylvania | PA | 03 |
Rhode Island | RI | 01 |
South Carolina | SC | 04 |
South Dakota | SD | 09 |
Tennessee | TN | 08 |
Texas | TX | 10 |
Utah | UT | 11 |
Vermont | VT | 01 |
Virginia | VA | 04 |
Washington | WA | 12 |
West Virginia | WV | 06 |
Wisconsin | WI | 07 |
Wyoming | WY | 11 |
A/C International |
| 15 |
Foreign Addresses |
| 15 |
Puerto Rico | PR | 15 |
U.S. Possessions |
| 15 |
Form 1120 - Prior Year Conversion Chart
2023
Schedule J |
|---|
Change Line 1 to Line 1a |
Change Line 2 to Line 1f |
Change Line 11 to Line 12 |
Lines 13, 14, and 15 are now transcribed rather than Line 16 |
2022-2018
2020 - 2018
2017 - 2012
Schedule J: |
|---|
Part I: |
Change Line 2 to Line 1a |
Change Line 3 to Line 1f |
Change Line 9g to Line 9z |
Change Line 11 to Line 12 |
Part III: |
Lines 13, 14, and 15 are now transcribed rather than Line 16 |
Change Line 20d to Line 20z |
Schedule J: |
|---|
Part I: |
Change Line 2 to Line 1a |
Change Line 3 to Line 1f |
Change Line 9g to Line 9z |
Change Line 11 to Line 12 |
Part III: |
Lines 13, 14, and 15 are now transcribed rather than Line 16 |
Change Line 20d to Line 20z |
Page 1 |
|---|
Change Line 32 to 33 |
Change Line 33 to 34 |
Change Line 34 to 35 |
Change Line 35 to 36 |
Change Line 36 to 37 |
If | And | Then |
|---|---|---|
201811 and prior, | The return is a personal service corporation, | Edit the Personal Service Corporation Code. Note: The computer will need this code to determine the correct tax (35%) for the prior year. |
201811 and prior, | The return is a part of a controlled group, | Edit a Controlled Group Code. Note: The computer will need this code to determine the correct tax (Schedule O, tax brackets) for the prior year. |
201811 and prior, | The return has an entry on Schedule J, Line 3 - Alternative Minimum Tax, | See IRM 3.11.16.11.16, Schedule J, Line 3 - Alternative Minimum Tax or Tax on Base Erosion Payments. |
Page 3, Schedule J |
|---|
Part I |
Change Line 2 to Line 1a |
Change Line 9f to Line 9z |
Part II |
Change Line 12 to Line 13 |
Change Line 13 to Line 14 |
Change Line 14 to Line 15 |
Change Part II, Line 15 to Part III, Line 16 |
Change Line 16 to Line 17 |
Change Line 17 to Line 18 |
Change Line 18 to Line 19 |
Change Line 19a to Line 20a |
Change Line 19b to, Line 20b |
Line through Line 19c |
Change Line 19d to Line 20z |
Change Line 20 to Line 21 |
Change Line 21 to Line 23 |
Form 1120-C - Prior Year Conversion Chart
2023
Page 2 |
|---|
Lines 30a, 30b, and 30c are now transcribed rather than Line 30d |
Change Line 30e to Line 30d |
Change Line 30f to Line 30e |
Change Line 30g to Line 30f |
Change Line 30h to Line 30g |
Change Line 30i to Line 30h |
Change Line 30j to Line 31 |
Change Line 31 to Line 32 |
Change Line 32 to Line 33 |
Change Line 33 to Line 34 |
Change Line 34 to Line 35 |
Schedule J |
|---|
Change Line 1 to Line 1a |
Change Line 2 to Line 1d |
Change Line 10 to Line 11 |
2022-2018
2017 - 2011
Location on Form |
|---|
Page 2: |
Lines 30a, 30b, and 30c are now transcribed rather than Line 30d |
Change Line 30e to Line 30d |
Change Line 30f (1) Form 2439 to Line 30e |
Change Line 30f (2) Form 4136 to Line 30f |
Change Line 30h to Line 30g |
Change Line 30j to Line 31 |
Change Line 31 to Line 32 |
Change Line 32 to Line 33 |
Change Line 33 to Line 34 |
Change Lines 34 to Line 35 |
Schedule J: |
Change Line 2 to Line 1a |
Change Line 3 to Line 1d |
Change Line 8a (Form 4255) to Line 8a |
Change Line 8 (Form 8611) to Line 8b |
Change Line 8 (Other) to Line 8z |
Change Line 8 (Form 8902) to Line 8c |
Change Line 9 to Line 11 |
Page 1 |
|---|
Change Line 29a to Line 30a |
Change Line 29b to Line 30b |
Change Line 29c to Line 30c |
Lines 29a, 29b, and 29c are now transcribed rather than Line 29d |
Change Line 29e to Line 30d |
Change Line 29f (1) Form 2439 to Line 30e |
Change Line 29f (2) Form 4136 to Line 30f |
Line through Line 29g |
Change Line 29h to Line 30g |
Change Line 29i to Line 31 |
Change Line 30 to 32 |
Change Line 31 to 33 |
Change Line 32 to 34 |
Change Line 33 to 35 |
If | And | Then |
|---|---|---|
201811 and prior, | The return is a part of a controlled group, | Edit a Controlled Group Code. Note: The computer will need this code to determine the correct tax (Schedule O, tax brackets) for the prior year. |
201811 and prior, | The return has an entry on Schedule J, Line 3 - Alternative Minimum Tax, | See IRM 3.11.16.33.21, Schedule J, Lines 2 through 8. |
Schedule J |
|---|
Change Line 2 to Line 1a |
Change Line 8 (Form 4255) to Line 8a |
Change Line 8 (Form 8611) to Line 8b |
Change Line 8 (Other) to Line 8z |
Change Line 8 (Form 8902) to Line 8c |
Change Line 9 to Line 11 |
Form 1120-F - Prior Year Conversion Chart
2023
Location on Form |
|---|
Page 1: |
Lines 5a, 5b, and 5c are now transcribed rather than Line 5d |
Schedule J: |
Change Line 2 to Line 2a |
2022 and prior
Location on Form |
|---|
Page 1: |
Lines 5a, 5b, and 5c are now transcribed rather than Line 5d |
Schedule J: |
Change Line 2 to Line 1 |
Change Line 3 to Line 2a |
Other Information |
|---|
Change Line II to HH |
Form 1120-FSC - Prior Year Conversion Chart
No recent changes to Form 1120-FSC
Form 1120-H - Prior Year Conversion Chart
2022 and prior
Page 1 |
|---|
Lines 23a and 23b are now transcribed rather than Line 23c |
Change Line 23d to Line 23c |
Change Line 23e to Line 23d |
Change Line 23f to Line 23e |
Form 1120-L - Prior Year Conversion Chart
2023
Page 1 |
|---|
Lines 27a, 27b, and 27c are now transcribed rather than Line 27d |
Change Line 27e to Line 27d |
Change Line 27f to Line 27e |
Change Line 27g to Line 27f |
Change Line 27h to Line 27g |
Change Line 27i to Line 27h |
Schedule K |
|---|
Change Line 1 to Line 1a |
Change Line 2 to Line 1e |
Change Line 8 to Line 8a |
Change Line 9 to Line 8b |
Change Line 10 to Line 8c |
Change Line 11 to Line 8z |
Change Line 12 to Line 11 |
2022-2018
2017-2007
Page 1 |
|---|
Change Line 28a to Line 27a |
Change Line 28c to Line 27b |
Change Line 28d to Line 27c |
Lines 28a, 28b, and 28c are now transcribed rather than Line 28e |
Change Line 28f to Line 27d |
Change Line 28g (1) Form 2439 to Line 27e |
Change Line 28g (2) Form 4136 to Line 27f |
Change Line 28h to Line 27g |
Change Line 28k to Line 28 |
Page 1 |
|---|
Change 27 to 25 |
Change Line 28 to 26 |
Change Line 29a to Line 27a |
Change Line 29b to Line 27b Note: If multiple entries are present on Lines 29b, 29c, and/or Line 29d then edit the total of all four lines to Line 27b. |
Change Line 29c to Line 27b Note: If multiple entries are present on Lines 29b, 29c, and/or Line 29d then edit the total of all four lines to Line 27b. |
Change Line 29d to Line 27b Note: If multiple entries are present on Lines 29b, 29c, and/or Line 29d then edit the total of all four lines to Line 27b. |
Line through Line 29e |
Change Line 29f to 27c |
Change Line 29g to 27d |
Change Line 29h (1) Form 2439 to Line 27e |
Change Line 29h (2) Form 4136 to Line 27f |
Change Line 29i to Line 27g |
Line through Line 29j |
Change Line 30 to 29 |
Change Line 31 to 30 |
Change Line 32 to 31 |
Change Line 33 to 32 |
Form 1120-PC - Prior Year Conversion Chart
2023
Page 1 |
|---|
Change Line 3 to Line 3a |
Change Line 5 to Line 3d |
Change Line 8f to Line 9 |
Change Line 9 to Line 10 |
Change Line 10 to Line 11 |
Change Line 11 to Line 12 |
Change Line 12a to Line 13a |
Change Line 12b to Line 13b |
Change Line 12z to Line 13z |
Change Line 13 to Line 14 |
Change Line 14 to Line 15 |
Change Line 15a to Line 16a |
Change Line 15b to Line 16b |
Change Line 15c to Line 16c |
Lines 15a, 15b, and 15c are now transcribed rather than Line 15d |
Change Line 15e to Line 16d |
Change Line 15f to Line 16e |
Change Line 15g to Line 16f |
Change Line 15z to Line 16z |
Change Line 16 to Line 17 |
Change Line 17 to Line 18 |
Change Line 18 to Line 19 |
Change Line 19 to Line 20 |
Change Line 20 to Line 21 |
2022-2018
2017-2007
Page 1 |
|---|
Change Line 4 to Line 3a |
Change Line 6 to Line 3d |
Change Line 8f to Line 9 |
Change Line 9 to Line 10 |
Change Line 10 to Line 11 |
Change Line 11 to Line 12 |
Change Line 12 (Form 4255) to LIne 13a |
Change Line 12 (Form 8611) to Line 13b |
Change Line 12 (Other) to Line 13z |
Change Line 13 to 15 |
Change Line 15a to Line 16a |
Change Line 15c to Line 16b |
Change Line 15e to Line 16c |
Lines 15a, 15c, and 15e are now transcribed rather than Line 15f |
Change Line 15g to 16d |
Change Line 15h to Line 16e |
Change Line 15i to Line 16z |
Change Line 16 to Line 18 |
Change Line 17 to Line 19 |
Change Line 18 to Line 20 |
Change Line 19 to Line 21 |
Page 1 |
|---|
Change Line 4 to Line 3a |
Change Line 5 to Line 4 |
Change Line 8f to Line 9 |
Change Line 9 to Line 10 |
Change Line 10 to Line 11 |
Change Line 11 to Line 12 |
Change Line 12 (Form 4255) to Line 13a |
Change Line 12 (Form 8611) to Line 13b |
Change Line 12 (Other) to Line 13z |
Change Line 13 to Line 15 |
Change Line 14a to Line 16a |
Change Line 14b to Line 16b Note: If multiple entries are present on Lines 14b, 14c, and/or Line 14d then edit the total of all three lines to Line 16b. |
Change Line 14c to Line 16b Note: If multiple entries are present on Lines 14b, 14c, and/or Line 14d then edit the total of all three lines to Line 16b. |
Change Line 14d to Line 16b Note: If multiple entries are present on Lines 14b, 14c, and/or Line 14d then edit the total of all three lines to Line 16b. |
Change Line 14e to Line 16c |
Line through Line 14f |
Change Line 14g to Line 16d |
Change Line 14h to Line 16e |
Change Line 14i to Line 16z |
Line through Line 14j |
Change Line 15 to Line 18 |
Change Line 16 to Line 19 |
Change Line 17 to Line 20 |
Change Line 18 to Line 21 |
Form 1120-REIT - Prior Year Conversion Chart
2023
Page 2 |
|---|
Lines 25a, 25b, and 25c are now transcribed rather than Line 25d |
Change Line 25e to Line 25d |
Change Line 25f to Line 25e |
Change Line 25g to Line 25f |
Change Line 25h to Line 25g |
Change Line 25i to Line 26 |
Schedule J |
|---|
Change Line 2a to Line 1a |
Change Line 2b to Line 1b |
Change Line 2c to Line 1c |
Change Line 2d to Line 1d |
Change Line 2e to Line 1e |
Change Line 2f to Line 1f |
Change Line 2g to Line 1g |
Change Line 2h to Line 2 |
Change Line 3e to Line 4 |
Change Line 4 to Line 5 |
Change Line 5 to Line 6a |
Change Line 6 to Line 6b |
Change Line 7 to Line 6c |
Change Line 8 to Line 6d |
Change Line 9 to Line 6e |
Change Line 10 to Line 6z |
Change Line 11 to Line 9 |
2022-2018
2020-2018
2017-2008
Pages 1 and 2 |
|---|
Change Line 18 to 19 |
Change Line 19 to 20 |
Change Line 21a to 22a |
Change Line 21b to 22b |
Change Line 21c to 22c |
Change Line 21d to Line 22d |
Change Line 23 to 24 |
Lines 25a, 25b, and 25c are now transcribed rather than Line 25d |
Change Line 25e to Line 25d |
Change Line 25f (1) Form 2439 to Line 25e |
Change Line 25f (2) Form 4136 is Line 25f |
Change Line 25i to Line 26 |
Change Line 26 to Line 27 |
Change Line 27 to Line 28 |
Change Line 28 to Line 29 |
Change Line 29 to Line 30 |
Schedule J: |
|---|
Change Line 2a to Line 1a |
Change Line 2b to Line 1b |
Change Line 2c to Line 1c |
Change Line 2d to Line 1d |
Change Line 2e to Line 1e |
Line 2f number box 856(c)(7) was converted to a money amount on Line 1f |
Line 2f number box 856(g)(5) was converted to a money amount on Line 1g |
Change Line 2g to 2 |
Change Line 3e to Line 4 |
Change Line 5 to Line 6a |
Line 6 number box 453(c) was converted to a money amount on Line 6b |
Line 6 umber box 453(I)(3) was converted to a money amount on Line 6c |
Change Line 7 (Form 4255) to Line 6d |
Change Line 7 (Form 8611) to Line 6e |
Change Line 7 (Other) to Line 6z |
Change Line 8 to Line 9 |
Location on Form |
|---|
Page 1: |
Change Line 18 to Line 19 |
Change Line 19 to Line 20 |
Change Line 21a to Line 22a |
Change Line 21b to Line 22b |
Change Line 21c to line 22c |
Change Line 21d to Line 22d |
Page 2: |
Change Line 23 to Line 24 |
Lines 25a, 25b, and 25c are now transcribed rather than Line 25d |
Change Line 25e to Line 25d |
Change Line 25f to Line 25e |
Change Line 25g to Line 25f |
Line through Line 25h |
Schedule J: |
Change Line 2a to Line 1a |
Change Line 2b to Line 1b |
Change Line 2c to Line 1c |
Change Line 2d to Line 1d |
Change Line 2e to Line 1e |
Line 2f number box 856(c)(7) was converted to a money amount on Line 1f |
Line 2f number box 856(g)(5) was converted to a money amount on Line 1g |
Change Line 2g to Line 2 |
Change Line 3e to Line 4 |
Change Line 5 to Line 6a |
Change Line 6 (Form 4255) to Line 6d |
Change Line 6 (Form 8611) to Line 6e |
Change Line 6 (Other) to Line 6z |
Change Line 7 to Line 9 |
Location on Form |
|---|
Page 1: |
Change Line 18 to Line 19 |
Change Line 19 to Line 20 |
Change Line 21a to Line 22a |
Change Line 21b to Line 22b |
Change Line 21c to Line 22c |
Change Line 21d to Line 22d |
Change Line 22 to Line 23 |
Change Line 24a to Line 25a |
Change Line 24b to Line 25b |
Change Line 24c to Line 25c |
Lines 24a, 24b, and 24c are now transcribed rather than Line 24d |
Change Line 24e to Line 25d |
Change Line 24f (1) Form 2439 to Line 25e |
Change Line 24f (2) Form 4136 to Line 25f |
Line through Line 24g |
Change Line 25 to Line 26 |
Change Line 26 to Line 27 |
Change Line 27 to Line 28 |
Change Line 28 to Line 29 |
If | And | Then |
|---|---|---|
201811 and prior, | The return is a part of a controlled group, | Edit a Controlled Group Code. Note: The computer will need this code to determine the correct tax (Schedule O, tax brackets) for the prior year. |
201811 and prior, | The return has an entry on Schedule J, Line 2g - Alternative Minimum Tax, | See IRM 3.11.16.40.18, Schedule J, Lines 2b through 2g. |
Schedule J: |
|---|
Change Line 2a to Line 1a |
Change Line 2b to Line 1b |
Change Line 2c to Line 1c |
Change Line 2d to Line 1d |
Change Line 2e to Line 1e |
Line 2f number box 856(c)(7) was converted to a money amount on Line 1f |
Line 2f number box 856(g)(5) was converted to a money amount on Line 1g |
Line through Line 2g and edit the prior year AMT amount in the right margin |
Change Line 2h to Line 2 |
Change Line 3e to Line 4 |
Change Line 4 to Line 5 |
Change Line 5 to Line 6 |
Change Line 6 (Form 4255) to Line 6d |
Change Line 6 (Form 8611) to Line 6e |
Change Line 6 (Other) to Line 6z |
Change Line 7 to Line 9 |
Form 1120-RIC - Prior Year Conversion Chart
2023
2022-2018
2020-2018
2017-2012
Page 2 |
|---|
Lines 28a, 28b, and 28c are now transcribed rather than Line 28d |
Change Line 28e to Line 28d |
Change Line 28f to Line 28e |
Change Line 28g to Line 28f |
Change Line 28h to Line 28g |
Schedule J |
|---|
Change Line 2a to Line 1a |
Change Line 2b to Line 1b |
Change Line 2c to Line 1c |
Change Line 2d to Line 1d |
Change Line 2e to Line 2 |
Change Line 3e to Line 4 |
Change Line 4 to Line 5 |
Change Line 5 to Line 6a |
Change Line 6 to Line 6b |
Change Line 7 to Line 6c |
Change Line 8 to Line 6d |
Change Line 9 to Line 6z |
Change Line 10 to Line 9 |
Page 2 |
|---|
Change Line 29a to Line 28a |
Change Line 29b to Line 28b |
Change Line 29c to Line 28c |
Lines 29a, 29b and 29c are now transcribed instead of Line 29d |
Change Line 29e to Line 28d |
Change Line 29f to Line 28e |
Change Line 29g to Line 28f |
Change Line 29j to Line 29 |
Schedule J |
|---|
Change Line 2a to Line 1a |
Change Line 2b to Line 1b |
Line 2c number box 851(d)(2) was converted to a money amount on Line 1c |
Line 2c number box 851(i) was converted to a money amount on Line 1d |
Change Line 2d to Line 2 |
Change Line 3e to Line 4 |
Change Line 4 to Line 5 |
Change Line 5 to Line 6a |
Line 6 number box 453(c) was converted to a money amount on Line 6b |
Line 6 number box 453(I)(3) was converted to a money amount on LIne 6c |
Change Line 7 (Form 4255) to Line 6d |
Change Line 7 (Other) to Line 6z |
Change Line 8 to Line 9 |
Location on Form |
|---|
Page 2: |
Line through Line 28 |
Change Line 29a to Line 28a |
Change Line 29b to Line 28b |
Change Line 29c to Line 28c |
Lines 29a, 29b and 29c are now transcribed instead of Line 29d |
Change Line 29e to Line 28d |
Change Line 29f to Line 28e |
Change Line 29g to Line 28f |
Line through Line 29h |
Line through Line 29i |
Line 29j is now Line 29 |
Schedule J: |
Change Line 2a to Line 1a |
Change Line 2b to Line 1b |
Line 2c number box 851(d)(2) was converted to a money amount on Line 1c |
Line 2c number box 851(i) was converted to a money amount on Line 1d |
Change Line 2d to Line 2 |
Change Line 3e to Line 4 |
Change Line 4 to Line 5 |
Change Line 5 to Line 6a |
Change Line 6 (Form 4255) to Line 6d |
Change Line 6 (Other) to Line 6z |
Change Line 7 to Line 9 |
Page 2 |
|---|
Lines 28a, 28b, and 28c are now transcribed instead of Line 28d |
Change Line 28e to Line 28d |
Change Line 28f to Line 28e |
Change Line 28g to Line 28f |
Line through Line 28h |
Change Line 28i to Line 29 |
Change Line 29 to Line 30 |
Change Line 30 to Line 31 |
Change Line 31 to Line 32 |
Change Line 32 to Line 33 |
If | And | Then |
|---|---|---|
201811 and prior, | The return is a part of a controlled group, | Edit a Controlled Group Code. Note: The computer will need this code to determine the correct tax (Schedule O, tax brackets) for the prior year. |
201811 and prior, | The return has an entry on Schedule J, Line 2d - Alternative Minimum Tax, | See IRM 3.11.16.41.18, Schedule J, Lines 2b through 2d. |
Schedule J: |
|---|
Change Line 2a to Line 1a |
Change Line 2b to Line 1b |
Line 2c number box 851(d)(2) was converted to a money amount on Line 1c |
Line 2c number box 851(i) was converted to a money amount on Line 1d |
Delete Line 2d and edit the prior year AMT amount in the right margin |
Change Line 2e to Line 2 |
Change Line 3e to Line 4 |
Change Line 5 to Line 6a |
Change Line 6 (Form 4255) to Line 6d |
Change Line 6 (Other) to Line 6z |
Change Line 7 to Line 9 |
Form 8996 - Prior Year Conversion Chart
2020 and 2019
2018 and 2017
Part II |
|---|
Change Line 6 to 7 |
Change Line 7 to 8 |
Change Line 9 to 10 |
Change Line 10 to 11 |
Part III |
|---|
Change Line 13 to Line 14 |
Change Line 14 to Line 15 |
Part II |
|---|
Change Line 5 to 7 |
Change Line 6 to 8 |
Change Line 8 to 10 |
Change Line 9 to 11 |
Part III |
|---|
Change Line 12 to Line 14 |
Change Line 13 to Line 15 |
Form 8941 - Prior Year Conversion Chart
2013 and 2012
Page 1 |
|---|
Change Line 1a to Line 1 |
Change Line 1b to Line B |
Form 3800 - Prior Year Conversion Chart
(1) For prior year returns, transcription of some credits is no longer needed. If a prior year return has amounts on Lines 1d, 1g, 1o, 1q, 1u, 1v, 1z, 1aa or 1bb, no editing is required.
(2) The other credits are either new for 202301 and later or are the same.
(3) If a 2022 or prior year Form 3800 has multiple copies of Form 3800, Page 3, attached, follow the instructions below:
If | And | Then |
|---|---|---|
More than one copy of Form 3800, Page 3, is attached, | Box I is checked on one copy of Page 3, |
|
More than one copy of Page 3, Form 3800 is attached, | Box I is checked on more than one copy of Page 3, |
|
More than one copy of Form 3800, Page 3, is attached, | Box I is not checked on any copy of Page 3, | Staple all copies of Page 3 to Page 2. No transcription of Page 3 is necessary. |
(4) Form 3800 (2023 Revision) compared to Form 3800 (2024 Revision) Transcription (T) lines.
Form 3800 Line Title | Location on Form 3800 (2023 Revision) | Location on Form 3800 (2024 Revision) |
|---|---|---|
CAMT Checkbox | Part A, Checkbox | Part A, Checkbox |
General business credit | Part I, Line 1 | Part I, Line 1 |
Passive activity credits | Part I, Line 2 | Part I, Line 2 |
Passive activity credits allowed | Part I, Line 3 | Part I, Line 3 |
Carryforward of general business credits | Part I, Line 4 | Part I, Line 4 |
Carryback of general business credits | Part I, Line 5 | Part I, Line 5 |
Certain Allowable Credits | Part II, Line 10b | Part II, Line 10b |
Amount for Form 8844 | Part II, Line 22 (Source Part III, Line 3) | Part II, Line 22 (Source Part III, Line 3) |
Passive activity credit allowed | Part II, Line 24 | Part II, Line 24 |
Add Lines 17 and 26 | Part II, Line 28 | Part II, Line 28 |
Enter the general business credit | Part II, Line 30 | Part II, Line 30 |
Passive activity credits | Part II, Line 32 | Part II, Line 32 |
Passive activity credits allowed | Part II, Line 33 | Part II, Line 33 |
Carryforward of business credits | Part II, Line 34 | Part II, Line 34 |
Carryback of business credits | Part II, Line 35 | Part II, Line 35 |
Form 3468, Part II (Combine columns e and f) | Part III, Line 1a, Column j | Part III, Line 1a, Column g |
Form 7207(Registration number) | Part III, Line 1b, Column b | Part III, Line 1b, Column b |
Form 7207(Credit Transfer Election Amount) | Part III, Line 1b, Column g | Part III, Line 1b, Column f |
Form 7207 (Combine columns e and f) | Part III, Line 1b, Column j | Part III, Line 1b, Column g |
Form 7207 (Gross Elective Payment Election (EPE) Amount) | Part III, Line 1b, Column h | Part III, Line 1b, Column h |
Form 7207 (Net Elective Payment Election (EPE) Amount) | Part III, Line 1b, Column i. | Part III, Line 1b, Column j |
Form 6765 (Combine columns e and f) | Part III, Line 1c, Column j | Part III, Line 1c, Column g |
Form 3468, Part III, (Registration number) | Part III, Line 1d, Column b | Part III, Line 1d, Column b |
Form 3468, Part III, (Credit Transfer Election Amount) | Part III, Line 1d, Column g | Part III, Line 1d, Column f |
Form 3468, Part III, (Combine columns e and f) | Part III, Line 1d, Column j | Part III, Line 1d, Column g |
Form 3468, Part III, (Gross Elective Payment Election (EPE) Amount) | Part III, Line 1d, Column h | Part III, Line 1d, Column h |
Form 3468, Part III, (Net Elective Payment Election (EPE) Amount) | Part III, Line 1d, Column i. | Part III, Line 1d, Column j |
Form 8826, (Combine columns e and f) | Part III, Line 1e, Column j | Part III, Line 1e, Column g |
Form 8835, Part II (Registration number) | Part III, Line 1f, Column b | Part III, Line 1f, Column b |
Form 8835, Part II (Credit Transfer Election Amount) | Part III, Line 1f, Column g | Part III, Line 1f, Column f |
Form 8835, Part II (Combine columns e and f) | Part III, Line 1f, Column j | Part III, Line 1f, Column g |
Form 7210 (Registration number) | Part III, Line 1g, Column b | Part III, Line 1g, Column b |
Form 7210 (Credit Transfer Election Amount) | Part III, Line 1g, Column g | Part III, Line 1g, Column f |
Form 7210 (Combine columns e and f) | Part III, Line 1g, Column j | Part III, Line 1g, Column g |
Form 7210 (Gross Elective Payment Election (EPE) Amount) | Part III, Line 1g, Column h | Part III, Line 1g, Column h |
Form 7210 (Net Elective Payment Election (EPE) Amount) | Part III, Line 1g, Column i. | Part III, Line 1g, Column j |
Form 8820 (Combine columns e and f) | Part III, Line 1h, Column j | Part III, Line 1h, Column g |
Form 8874 (Combine columns e and f) | Part III, Line 1i, Column j | Part III, Line 1i, Column g |
Form 8881, Part I (Combine columns e and f) | Part III, Line 1j, Column j | Part III, Line 1j, Column g |
Form 8882 (Combine columns e and f) | Part III, Line 1k, Column j | Part III, Line 1k, Column g |
Form 8864 (diesel) (Combine columns e and f) | Part III, Line 1l, Column j | Part III, Line 1l, Column g |
Form 8896 (Combine columns e and f) | Part III, Line 1m, Column j | Part III, Line 1m, Column g |
Form 8906 (Combine columns e and f) | Part III, Line 1n, Column j | Part III, Line 1n, Column g |
Form 3468, Part IV (Registration number) | Part III, Line 1o, Column b | Part III, Line 1o, Column b |
Form 3468, Part IV (Combine columns e and f) | Part III, Line 1o, Column j | Part III, Line 1o, Column g |
Form 3468, Part IV (Gross Elective Payment Election (EPE) Amount) | Part III, Line 1o, Column h | Part III, Line 1o, Column h |
Form 3468, Part IV (Net Elective Payment Election (EPE) Amount) | Part III, Line 1o, Column i. | Part III, Line 1o, Column j |
Form 8908, (Combine columns e and f) | Part III, Line 1p, Column j | Part III, Line 1p, Column g |
Form 7218, Part II (Registration number) | New for 2024 Revision | Part III, Line 1q, Column b |
Form 7218, Part II (Credit Transfer Election Amount) | New for 2024 Revision | Part III, Line 1q, Column f |
Form 7218, Part II (Combine columns e and f) | New for 2024 Revision | Part III, Line 1q, Column g |
Form 7218, Part II (Gross Elective Payment Election (EPE) Amount) | New for 2024 Revision | Part III, Line 1q, Column h |
Form 7218, Part II (Net Elective Payment Election (EPE) Amount) | New for 2024 Revision | Part III, Line 1q, Column j |
Reserved. Previously used for Form 8910, (Combine columns e and f) Note: This credit expired in 202411. | Part III, Line 1r, Column j | Part III, Line 1r, Column g |
Form 8911, Part I (Registration number) | Part III, Line 1s, Column b | Part III, Line 1s, Column b |
Form 8911, Part I (Credit Transfer Election Amount) | Part III, Line 1s, Column g | Part III, Line 1s, Column f |
Form 8911, Part I (Combine columns e and f) | Part III, Line 1s, Column j | Part III, Line 1s, Column g |
Form 8911, Part I (Gross Elective Payment Election (EPE) Amount) | Part III, Line 1s, Column h | Part III, Line 1s, Column h |
Form 8911, Part I (Net Elective Payment Election (EPE) Amount) | Part III, Line 1s, Column i. | Part III, Line 1s, Column j |
Form 8830, (Combine columns e and f) | Part III, Line 1t, Column j | Part III, Line 1t, Column g |
Form 7213, Part II (Registration number) | Part III, Line 1u, Column b | Part III, Line 1u, Column b |
Form 7213, Part II (Credit Transfer Election Amount) | Part III, Line 1u, Column g | Part III, Line 1u, Column f |
Form 7213, Part II (Combine columns e and f) | Part III, Line 1u, Column j | Part III, Line 1u, Column g |
Form 7213, Part II (Gross Elective Payment Election (EPE) Amount) | Part III, Line 1u, Column h | Part III, Line 1u, Column h |
Form 7213, Part II (Net Elective Payment Election (EPE) Amount) | Part III, Line 1u, Column i. | Part III, Line 1u, Column j |
Form 3468, Part V (Registration number) | New for 2024 Revision | Part III, Line 1v, Column b |
Form 3468, Part V (Credit Transfer Election Amount) | New for 2024 Revision | Part III, Line 1v, Column f |
Form 3468, Part V (Combine columns e and f) | New for 2024 Revision | Part III, Line 1v, Column g |
Form 3468, Part V (Gross Elective Payment Election (EPE) Amount) | New for 2024 Revision | Part III, Line 1v, Column h |
Form 3468, Part V (Net Elective Payment Election (EPE) Amount) | New for 2024 Revision | Part III, Line 1v, Column j |
Form 8932, (Combine columns e and f) | Part III, Line 1w, Column j | Part III, Line 1w, Column g |
Form 8933, (Registration number) | Part III, Line 1x, Column b | Part III, Line 1x, Column b |
Form 8933, (Credit Transfer Election Amount) | Part III, Line 1x, Column g | Part III, Line 1x, Column f |
Form 8933 (Combine columns e and f) | Part III, Line 1x, Column j | Part III, Line 1x, Column g |
Form 8933 (Gross Elective Payment Election (EPE) Amount) | Part III, Line 1x, Column h | Part III, Line 1x, Column h |
Form 8933 (Net Elective Payment Election (EPE) Amount) | Part III, Line 1x, Column i. | Part III, Line 1x, Column j |
Form 8936, Part II (Combine columns e and f) | Part III, Line 1y, Column j | Part III, Line 1y, Column g |
Form 8936, Part V (Registration number) | Part III, Line 1aa, Column b | Part III, Line 1aa, Column b |
Form 8936, Part V (Combine columns e and f) | Part III, Line 1aa, Column j | Part III, Line 1aa, Column g |
Form 8936, Part V (Gross Elective Payment Election (EPE) Amount) | Part III, Line 1aa, Column h | Part III, Line 1aa, Column h |
Form 8936, Part V (Net Elective Payment Election (EPE) Amount) | Part III, Line 1aa, Column i. | Part III, Line 1aa, Column j |
Form 8904 (Combine columns e and f) | Part III, Line 1bb, Column j | Part III, Line 1bb, Column g |
Form 7213, Part I (Combine columns e and f) | Part III, Line 1cc, Column j | Part III, Line 1cc, Column g |
Form 8881, Part II (Combine columns e and f) | Part III, Line 1dd, Column j | Part III, Line 1dd, Column g |
Form 8881, Part III (Combine columns e and f) | Part III, Line 1ee, Column j | Part III, Line 1ee, Column g |
Form 8864, Line 8 (Combine columns e and f) | Part III, Line 1ff, Column j | Part III, Line 1ff, Column g |
Form 7211, Part II (Registration number) | New for 2024 Revision | Part III, Line 1gg, Column b |
Form 7211, Part II (Credit Transfer Election Amount) | New for 2024 Revision | Part III, Line 1gg, Column f |
Form 7211, Part II (Combine columns e and f) | New for 2024 Revision | Part III, Line 1gg, Column g |
Form 7211, Part II (Gross Elective Payment Election (EPE) Amount) | New for 2024 Revision | Part III, Line 1gg, Column h |
Form 7211, Part II (Net Elective Payment Election (EPE) Amount) | New for 2024 Revision | Part III, Line 1gg, Column j |
Other credits (Combine columns e and f) | Part III, Line 1zz, Column j | Part III, Line 1zz, Column g |
Form 3468, Part VI (Registration number) | Part III, Line 4a, Column b | Part III, Line 4a, Column b |
Form 3468, Part VI (Credit Transfer Election Amount) | Part III, Line 4a, Column g | Part III, Line 4a, Column f |
Form 3468, Part VI (Combine columns e and f) | Part III, Line 4a, Column j | Part III, Line 4a, Column g |
Form 3468, Part VI (Gross Elective Payment Election (EPE) Amount) | Part III, Line 4a, Column h | Part III, Line 4a, Column h |
Form 3468, Part VI (Net Elective Payment Election (EPE) Amount) | Part III, Line 4a, Column i. | Part III, Line 4a, Column j |
Form 5884, (Combine columns e and f) | Part III, Line 4b, Column j | Part III, Line 4b, Column g |
Form 6478, (Combine columns e and f) | Part III, Line 4c, Column j | Part III, Line 4c, Column g |
Form 8586, (Combine columns e and f) | Part III, Line 4d, Column j | Part III, Line 4d, Column g |
Form 8835, Part II (Registration number) | Part III, Line 4e, Column b | Part III, Line 4e, Column b |
Form 8835, Part II (Credit Transfer Election Amount) | Part III, Line 4e, Column g | Part III, Line 4e, Column f |
Form 8835, Part II (Combine columns e and f) | Part III, Line 4e, Column j | Part III, Line 4e, Column g |
Form 8835, Part II (Gross Elective Payment Election (EPE) Amount) | Part III, Line 4e, Column h | Part III, Line 4e, Column h |
Form 8835, Part II (Net Elective Payment Election (EPE) Amount) | Part III, Line 4e, Column i. | Part III, Line 4e, Column j |
Form 8846, (Combine columns e and f) | Part III, Line 4f, Column j | Part III, Line 4f, Column g |
Form 8900, (Combine columns e and f) | Part III, Line 4g, Column j | Part III, Line 4g, Column g |
Form 8941, (Combine columns e and f) | Part III, Line 4h, Column j | Part III, Line 4h, Column g |
Form 6765, (Combine columns e and f) | Part III, Line 4i, Column j | Part III, Line 4i, Column g |
Form 8994, (Combine columns e and f) | Part III, Line 4j, Column j | Part III, Line 4j, Column g |
Form 3468, Part VII, (Combine columns e and f) | Part III, Line 4k, Column j | Part III, Line 4k, Column g |
Other specified credits (Combine columns e and f) | Part III, Line 4z, Column j | Part III, Line 4z, Column g |
Indicator - Part V, Column b has significant data | Form 3800, Part III, (edited bottom right) | Form 3800, Part III, (edited bottom right) |
Schedule F - Transfer Lines
Form 8404, Interest Charge on DISC-Related Deferred Tax Liability
USPS.com Track and Confirm
