3.11.249. Processing Form 8752

(1) Partnerships and S Corporations use Form 8752, Required Payment or Refund under Section 7519, to figure and report the payment required under Section 7519 or to obtain a refund of net prior year payments.

(2) Document Perfection codes and edits (perfects) returns and documents for input to Master File (MF) through the Integrated Submission and Remittance Processing System (ISRP) and the Service Center Recognition Image Processing System (SCRIPS).

(3) Document Perfection routes documents and attachments not related to return processing to the responsible function.

(4) It is not the purpose of Code and Edit to mathematically verify or to check the validity of the returns and other documents being processed unless otherwise specified in the applicable section.

(1) Authority for these procedures is found in Internal Revenue Code Section 7519 and corresponding Treasury Regulations.

(2) Policy Statements for Submission Processing are found in IRM 1.2.1, Servicewide Policies and Authorities, Servicewide Policy Statements.

(1) Submission Processing (SP), Return Processing Branch (RPB), BMF Code and Edit (C&E) and Error Resolution System (ERS) Section is responsible for the content in this IRM. The BMF Code and Edit analyst makes updates as needed and revises content once a year effective January 1st of each calendar year.

(2) The BMF Code and Edit and Error Resolution System Section manager ensures the IRM is timely submitted to Publishing each year.

(3) The Campus Director monitors operational performance for the Submission Processing campus.

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

(5) The Team Manager/Lead monitors performance and ensures employees have the tools to perform their duties.

(6) The Team Employees follow the instructions in this IRM and keep updated on the IRM procedures.

(1) Program Goals: Make sure Form 8752, Required Payment or Refund under Section 7519, is code and edit ready for transcription.

(2) Program Reports: The Batch Block Tracking System (BBTS) captures and stores a vast amount of data, which can be used in performance monitoring and production projections.

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

• Embedded Quality Submission Processing (EQSP)

• Balanced Measures

• Managerial Reviews

(4) Annual Review: The processes outlined in this IRM are reviewed annually during IRM Review and Clearance to ensure they are accurate and promote consistent tax administration.

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

(1) The following table defines terms that appear throughout this IRM section:Terms and Definition

(2) See Exhibit 3.11.249-2, Acronyms and Abbreviations, for a list of commonly used acronyms and abbreviations that appear throughout this IRM section.

(1) These resources may help in performing the work as outlined in this IRM.Related Resources

(1) The instructions in this section pertain to the coding and editing of Form 8752, Required Payment or Refund Under Section 7519, that will be input to the Business Master File (BMF).

(2) General instructions are provided to eliminate the repetition of the same instructions for the specific return. If there is a conflict between the general instructions and the specific instructions, the specific instructions will prevail.

(3) This manual is your main source of information. You can also find procedures in the following IRMs:

• IRM 3.10.72, Receiving, Extracting, and Sorting

• IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates

(4) IRM 3.11.249 is exempt from the BMF Consistency Guidelines (for example, indicating diamonds) as shown in other sections of IRM 3.11, Returns and Documents Analysis.

(1) The instructions in this section are for coding and editing of Form 8752, Required Payment or Refund Under Section 7519. Form 8752 will be filed by partnerships and S Corporations who have elected to file their income tax returns on a tax year other than the required year. The Form 8752 is used to remit the required payment. It will be posted to the BMF as Master File Tax (MFT) Code 15, Document Code 23 and Tax Class 2. Time will be charged to Program 19000 (Other BMF Returns) and Program 19001 (Refunds).

(2) Form 1065, U.S. Return of Partnership Income, and Form 1120-S, U.S. Income Tax Return for an S Corporation, use Form 8752 to figure and report the payment required under Section 7519 or to obtain a refund of net prior year payment(s). A partnership (Form 1065) or S Corporation (Form 1120-S) must file Form 8752 if it made an Internal Revenue Code (IRC) 444 election by filing Form 8716, Election To Have A Tax Year Other Than a Required Tax Year, and its election is still in effect for the tax year. Any tax year that has an IRC 444 election in effect is an "applicable election year." Prior to 1990, the IRC 444 payment made by these taxpayers was reported on Form 720, Quarterly Federal Excise Tax Return.

(3) For applicable election years, Form 8752 must be filed and the required payment made on or before May 15 of the year following the calendar year in which the applicable election year begins. The required payment is intended to represent the value of the tax deferral by the owners of those entities using a taxable year other than the required year. Generally, for an S corporation, the tax year resulting from an IRC 444 election is a Fiscal Year (FY) ending in September, October or November. A partnership's tax year may differ and depends on the tax year of the partners. The required payment is considered a deposit.

(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.

(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 can't 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 it to TAS following your 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.

(1) BMF ID Theft is increasing. If a case is found with attachments or correspondence showing the taxpayer is a victim of "ID Theft" (IDT), give the entire case to the manager/lead.

(2) The manager/lead will expedite the case to the Planning and Analysis (P&A) staff for referral to one of the Submission Processing (SP) BMF ID Theft liaisons. The taxpayer must show that they are a victim of "ID Theft"; do not send cases that are subject to Criminal Investigation (CI), Examination (Exam), or Fraud review.

(1) Businesses use frivolous arguments to express dissatisfaction with the substance, form or administration of the tax laws by trying to avoid or reduce tax liabilities illegally. See IRM 25.25.10, Frivolous Return Program, and Exhibit 3.11.249-3, Potential Frivolous Arguments for Examination Review, for a list of recognized frivolous arguments made by businesses.

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

(3) Do not consider the following returns as frivolous, unless there is other evidence of a frivolous argument:

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

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

(1) The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA98), Section 3705(a) provides identification requirements for all IRS employees working on tax-related matters.

(2) All IRS employees who communicate by telephone, face-to-face, or any other method of correspondence with taxpayers or their representatives on tax-related matters must give (at a minimum) the following information:

1. 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.

2. 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.

3. 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.

4. 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 a taxpayer requests to speak with a specific employee who previously worked their inquiry or request, or complains about the level of service previously given, make every 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 subsequent contact, when the nature of an employee's work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either by telephone or in-person) their badge identification (ID Card) number on the first contact.

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

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

(3) For returns with refund claims ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ do the following: Criminal Investigation (CI) Referral

(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 that is outside of the norm for data found on similar returns for each income tax return type. If C&E finds return characteristics not meeting Audit Code or Exam referral criteria it deems suspicious, CI is available to review the referral.

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

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

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

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

CI Referral Criteria Routing

Submission Processing Campus/Center	Route The Copy To:
Ogden	Mail Stop 9001, Criminal Investigation (CI)
Kansas City	Mail Stop S2 9000, Criminal Investigation (CI)

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

5. Continue processing the return.

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

(1) The primary goal in identifying tax returns for examination is to promote the highest degree of voluntary compliance. Examination gives support and helps Submission Processing (SP) with any questionable return found during processing. Exam has many programs and tolerance criteria already found in several IRM sections. SP can refer any questionable return to Exam, unless prohibited by instructions currently found in several IRMs.

(1) For returns completed in other than U.S. currency, process as filed. However, if corresponding for missing/incomplete item(s), include in the letter (e.g., 3463C, 118C) to resubmit return in U.S. currency.

(1) Each block of documents processed under the Automated Data Processing (ADP) system must have a Block Control Document attached for control and identification purposes. If blocks, or unblocked documents which should have been blocked, are received without a Block Control Document, return the block to the originating area for correction. The Block Control Documents are as follows:

(2) Form 813, Document Register, is used with remittance (W/R) documents.

(3) Form 1332, Block and Selection Record, is used for non-remittance (N/R) documents. The Form 1332, Block and Selection Record, is also used for returns processed through the Residual Remittance Processing System (RRPS). These returns are considered non-remittance returns since the payments have been posted to the Business Master File (BMF) to provide a fact of filing.

1. If a numbered remittance document is in a numbered non-remittance block controlled by Form 1332, the document must be "U" coded. It will have to be re-blocked for account maintenance.

2. If every document in a non-remittance block has a remittance attached, return the block for re-blocking.

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

1. If a single return is being reinput, the Form 3893 will be attached to the face of the document.

2. If more than one return from the same original block is being reinput, the Form 3893 will be attached to the first return in the reinput block.

3. If more than one return is in the block 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.

4. Circle the Computer Condition Code (CCC) "G" if present.

5. Do not edit CCC "G" on amended returns.

6. If the return is not edited according to current processing instructions, circle out any 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 the information from Form 3893 is edited on the return.

Form 3893

Form 3893	Action Taken
Box 14 (Remarks)	Ensure the information is edited to the return.
Box 15 (Process as)	Circle any green rocker and edit marks that may show a receipt of remittance. Do not change any tax due amounts.

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.

Correction Procedures

If	Then
a. Improper perfection,	Edit the same correction in red/green (per local procedure) to the correct area.
b. Taxpayer error,	Leave the entries as shown on the document.

9. A received date must be present on all reinput returns.

   Note: See IRM 3.11.249.11 (5), Received Date, for more information.

Received Date

If	Then
a. Received date is not present,	Edit a received date to the middle of the return in MMDDYY format.
b. 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 CCC "U" on the return and attach Form 4227, or other proper routing slip notating, "PERFECTION NOT POSSIBLE" and leave in batch.

(5) 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.

1. Circle CCC "G" if present.

2. Do not edit CCC "G" on amended returns.

3. If the return is not edited according to current processing instructions, circle out Computer Condition Codes and any other edit marks that are no longer applicable. Re-edit according to current processing instructions.

4. If the return was edited according to current processing instructions, ensure the information from Form 13596 is edited on the return.

Form 13596

Form 13596	Action Taken
TIN correction	Edit correct TIN on return.
Tax period correction	Edit correct tax period ending on return.
Reasonable cause	Edit proper computer condition code: Edit CCC "R" if the Failure to File "FTF" box is checked. Edit CCC "D" if the Failure to Pay "FTP" box is checked.

5. 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.

Correction Procedures

If	Then
a. Improper perfection,	Edit the same correction in red/green (per local procedure) to the proper area.
b. Taxpayer error,	Leave the entries as shown on the document.

6. A received date must be present on all reprocessed returns.

   Note: See IRM 3.11.249.11 (5), Received Date, for more information.

Received Date

If	Then
a. Received date is not present,	Edit a received date to the middle of the return in MMDDYY format.
b. Multiple received dates are present,	Circle all but the earliest date.

7. Circle the green rocker and edit marks that may show a receipt of remittance.

8. When more information is still needed to make the return processable, prepare approved Correspondence Action Sheet or Form 4227 for the proper action (e.g., correspondence, research).

(1) This section has descriptions and functions of the Document Locator Number (DLN), blocking returns and documents, and document count.

3.11.249.3.2.1 (01-01-2025)

Document Locator Number (DLN)

(1) The DLN is a controlled number assigned to every return or document input through the Automated Data Processing (ADP) system. This number is assigned when the document is blocked and brought under Accounting Control.

(2) The DLN is used to control, identify, and locate documents processed in the ADP system. It will be used to locate the document as long as it (or a substitute document) remains in the files, unless it becomes the subject of subsequent action. See Figure 3.11.249-1, Document Locator Number Illustration.

(3) The parts of the DLN are explained in the Parts of the Document Locator Number (DLN) Table below. Refer to Figure 3.11.249-1, Document Locator Number Illustration.

Note: For more information, see Document 6209, IRS Processing Codes and Information.

Seven Parts of the Document Locator Number (DLN)

Seven Parts of the Document Locator Number (DLN)	Example
Part 1 - File Location Code (FLC) - Identifies the campus or area office processing the document.	File Location Code is 00. Note: Ogden Campus FLC: (29) and Kansas City Campus FLC (09). For more Filing Location Codes, see Document 6209, IRS Processing Codes and Information.
Part 2 - Tax Class - Identifies the type of return or document that was filed.	Business Master File (BMF) Tax Class 2 represents Form 8752.
Part 3 - Document (Doc) Code - Identifies the type of document within a tax class.	Doc Code 23 is for Form 8752.
Part 4 - Julian Date - Identifies the day of the year the tax return or document is numbered (001 through 365).	Julian Date 050 represents Calendar Date 02-19-2025.
Part 5 - Block Number - Identifies the different categories of document control for input to the Master File.	Block Number is 012.
Part 6 - Sequence Number - Identifies the sequence of a document within a block. The maximum number will be 100 and the documents are numbered 00 to 99.	Sequence Number 03 shows it is the fourth document.
Part 7 - Year - The year the document is being processed. This digit is assigned later in the processing cycle.	A return filed in 2025 will have processing year digit 5.

(4) On numbered blocks, compare the first return in the block to the Form 813, Document Register, or Form 1332, Block and Selection Record. If the documents have not been blocked, all documents in a block (or a batch) should be of the same type. The type of document is determined by a specific Tax Class and Document Code.

(5) The first eleven digits of the DLN of each document in a block should be the same as the corresponding digits stamped on the face of the Form 813 or Form 1332. If there is a difference, give the block to the manager for re-association of the documents with the correct block control document. It is necessary to check only the DLN of the first document in a block to make the above comparisons of DLNs.

(6) A document may have two different DLNs stamped on it because of re-blocking. If this happens, circle the incorrect DLN. Determine the correct DLN from the Form 813, Document Register, or Form 1332, Block and Selection Record.

(1) Enter all edit marks on a document being input to the Automated Data Processing (ADP) system with brown, orange, red, green or purple pencil/pen unless a specified instruction requires another type of marking.

1. Code and Edit will correct Residual Remittance Processing System (RRPS) editing errors about the Name Control, Employer Identification Number (EIN), and the tax period. The edit corrections will take precedence over the RRPS editing.

   Note: Corrections on RRPS documents made in "red" should not be changed.

2. Code and Edit will reject any documents that reflect an incorrect RRPS money amount, MFT, or tax class if entered by RRPS. An incorrect RRPS money amount will usually be the result of "mixed data" for two or more returns.

(2) Edit any misplaced or illegible transcription entry to the proper transcription line. Use an arrow if it will leave no room for doubt as to where the entry belongs.

(3) Form 8752, Required Payment or Refund Under Section 7519, must be edited for dollars and cents.

(1) Edit marks are edited on the return for transcription to the Automated Data Processing (ADP) system through the Integrated Submission and Remittance Processing (ISRP) system. Enter edit marks in brown, red, orange, purple, or green pencil or pen.

(2) Only edit items on the return that are for transcription except where specific instructions require editing of a non-transcribed item. Leave lines blank if the entry would be a zero amount unless otherwise instructed.

(3) Do not obliterate, alter, or erase the original entry on a return when deleting or correcting an entry. Always exercise care to ensure 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.

(5) Photocopied Returns - Re-edit or underline any valid, black edit marks. See IRM 3.11.249.6.3, Correspondence Imaging Inventory (CII) Returns, and IRM 3.11.249.3.1, Block Control Documents.

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

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

1. Only detach attachments when specifically instructed.

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

2. Edit action trail (e.g., "2848 DETACHED" or similar language) in the lower left corner going vertically up the side of the return.

3. Edit the name and EIN (if not present) on the detached document. Also, edit the return received date (e.g., Rec’d MM/DD/YY) in the lower left margin of the detached document before routing.

4. Ensure any document that must remain with the return is securely stapled to prevent its loss.

(2) Follow the general guidelines in the Routing Guide for Attachments Table below for each attachment.

(1) Other Unrelated Attachments - Remove other unrelated attachments from the document being processed, route using a Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip to the correct function for the necessary action, and edit an action trail in the lower left corner going vertically up the side of the return. On the Form 4227, include the following identifying information:

1. Name and address of the taxpayer

2. Employer Identification Number (EIN)

3. Received date

4. Tax period

5. Type of document from which attached

6. Action must be taken

(2) If the taxpayer writes the information on the return, photocopy the data and route to the correct function using a Form 4227 or other proper routing slip.

(3) If an attachment should be removed because most of the information is unrelated to the document being processed, photocopy the applicable data needed to process the document under examination and attach to the document being processed.

(1) Remittance Attached - Immediately give to your manager. The manager should follow the instructions in IRM 3.8.46, Deposit Activity - Discovered Remittance.

(2) If an attachment shows that the taxpayer has included a tax payment for more than one tax period, take the following action:

1. Numbered Return - Prepare a dummy return(s) if possible; otherwise, initiate correspondence using Form 3696, Correspondence Action Sheet, or other approved Correspondence Action Sheet to secure the needed data. Edit Computer Condition Code (CCC) "U" on the return.

2. Unnumbered Return - Prepare a dummy return(s) if possible; otherwise, pull the return and prepare Form 3696, Correspondence Action Sheet, or other approved Correspondence Action Sheet to initiate correspondence to the taxpayer to secure the other return(s) and information. If the taxpayer does not reply, edit CCC "X."

(3) If the taxpayer files a return for the purpose of submitting a subsequent payment or did not include the payment with the original return, edit CCC "U." Prepare Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip and notate on Form 4227, "Research - Missed or Subsequent Payment." Rejects will research to determine if the original return posted and if the payment was subsequent or missed.

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

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

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

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

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

1. Is taxpayer waiting for a response from the IRS?

2. Is taxpayer waiting for the IRS to take action?

3. Is the taxpayer asking a question?

(1) Issue correspondence to resolve any conditions causing the return to be unworkable or unprocessable.

(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., shows "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 indicating "Payment Only."

(3) Examine the return for all unprocessable conditions before initiating correspondence.Correspondence

(4) Below are letters which are provided by Headquarters for Submission Processing (SP) Campus use in corresponding for items listed in this IRM. It is expected that tax examiners or their supervisors (or delegates) will have access to and be familiar with the Submission Processing Campus Correspondex for selection of correct letters. This list is not all-inclusive.

1. Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office - Letter referring taxpayer inquiry/forms to another office.

2. Letter 118C, Corporate Return Incomplete for Processing: Form 1120, Form 1120 Series, Form 1120-S - Letter requesting missing schedules or documents.

3. Letter 1382C, Penalty Removal Request Incomplete - Letter used to inform the taxpayer of the proper procedure to follow to request penalty abatement, if, and when a penalty is assessed.

4. Letter 3463C, Missing Information Request to Process Business Returns - Letter requesting missing information to process business 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.

(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. Correspondence Imaging Inventory (CII) Returns

(4) Follow the correspondence instructions below for processing CII returns. Correspondence Imaging Inventory (CII) Returns

(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 with the taxpayer may be 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 ensure 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 the following:

• IRM 10.5.1.6.7.2, Answering Machine or Voicemail

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

(1) If a signature is missing, correspond:

(1) The Preparer Tax Identification Number (PTIN) is to the right of the Preparer's Signature in the PTIN box at the bottom right corner of Form 8752.

(2) No action is required on amended returns.

(3) The valid PTIN begins with the alpha "P" followed by an eight-digit number (e.g., PXXXXXXXX). Circle the PTIN if it is invalid, all zeros or all nines.

(4) The Preparer's Social Security Number (SSN) is a nine-digit number. Circle the SSN if invalid, all zeros or all nines.

(1) The Firm's EIN is below the Preparer's PTIN box at the bottom right corner of Form 8752.

(2) No action is required on amended returns.

(3) The Firm's EIN is a nine-digit number. Circle the EIN if it is invalid, all zeroes or all nines.

(1) The Preparer's Phone Number is below the Firm's EIN at the bottom right corner of Form 8752.Preparer Phone Number

(1) Even though a return may be considered valid for filing and timeliness purposes, it may not be processable. It is unprocessable if:

• The Name Control can't be determined because the name is illegible or incomplete.

• The Employer Identification Number (EIN) is other than nine numeric digits (XX-XXXXXXX) and can't be perfected from information on the return or attachment

• The address is illegible

• The taxpayer has combined liability for more than one type of tax

• The tax data entries on the document are so incomplete, illegible, or contradictory that the tax liability can't be determined

• The document was misblocked. (e.g., Form 720 in a Form 8752 block)

• Form 8752 has a tax period before December 31, 1990 (9012)

• The return is unsigned

• The return has only entity data and no other statements, attachments or signature by the taxpayer

• Any condition set forth as unprocessable in the specific instructions

(1) A return must contain specific items before it is considered processable. Examine schedules and other attachments for the information necessary to make the document processable and enter on the applicable return. The specific items needed are:

1. A Taxpayer Identification Number (TIN)

2. A legible Name Control

3. A legible address

4. A valid tax period

5. Legible tax data, if tax liability is shown

6. Signature

(2) Returns with unresolved entity problems should be routed to Entity Control for research.

(3) If the return has multiple EINs, an EIN that is missing, "Applied for", "Pending", etc., see IRM 3.11.249.10.2, Entity Perfection - Employer Identification Number (EIN).

(4) If the name is illegible on the return, see IRM 3.11.249.10.3, Entity Perfection - Name Control.

(5) For other unprocessable conditions, initiate correspondence if you have a name and address and research can't resolve the issue.

1. Attach Form 3696, Correspondence Action Sheet, Form 3696-A, IDRS Correspondence Action Sheet, or other approved Correspondence Action Sheet to the front of the return.

2. Edit Computer Condition Code (CCC) "U" on the return and leave it in the block (or batch).

(6) Route unprocessable returns to the Correspondence Unit using a Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip for the HOLD FILE for the following reasons:

1. The return is being reinput after correspondence or research and the document is still unprocessable.

2. The return has a signature (regardless of whose signature it is), but no entity data. In this instance, research may not produce the entity name because the signature is of a bookkeeper, secretary, etc.

3. The return has no entity data, an illegible signature, and the first alpha letter of the last name can be determined. Do not research and forward to the HOLD FILE for filing under the alpha letter of the last name.

   Note: The HOLD FILE will be searched when there is a taxpayer inquiry and it is possible the return may be in this file. The returns held in this file are retired to the Federal Records Center (FRC) per Document 12990, IRS Records Control Schedules.

(7) Do not send the following unprocessable returns to the HOLD FILE:

1. Overpaid returns without a reply and those with a taxpayer reply that is still unprocessable. Edit Computer Condition Code (CCC) "X".

2. Returns which contain no entity data or signature. If the only entries on the return are figures, give the return to your manager for administrative determination. Likewise, give your manager returns with illegible signatures where the alpha letter of the last name can't be determined.

3. Undeliverable returns. This includes returns with incomplete entity that can't be identified by a signature. These returns should be held for one year and disposed of per IRM 1.10.1, Office of the Commissioner of Internal Revenue, IRS Correspondence Manual. Do not send to the Federal Records Center.

(1) When a signed perjury (declaration) is received, attach it to the return.

(2) Complete the return based on the information submitted by the taxpayer.

(3) If an IRS letter is attached which bears an IRS Received Date stamp band and there is no date stamp on the return, edit the date (as stamped on the attachment) on the return.

(4) If two received dates are on the return, circle the original (earliest) received date, if it was not previously circled.

(1) Only one correspondence attempt is required. If a reply is not received after the prescribed suspense period, prepare Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip notating that the taxpayer did not reply to correspondence for Form 8752, Required Payment or Refund Under Section 7519. Route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal, to determine Section 444 election.

(2) Edit CCC "X" on an overpaid return. Do not change the received date.

(1) Reject a document for the following reasons:

1. The document is for a tax period before December 31, 1990.

2. The document is a type that has not been included in the Automated Data Processing (ADP) system.

3. The filer sends a blank return and states that taxpayer is not required to file or does not understand why taxpayer received the Form 8752, Required Payment or Refund Under Section 7519.

(2) Prepare Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip. Write the reason for rejection and attach the form to the face of the document immediately under the entity data for the following:

1. Numbered Document - Edit CCC "U" on the document and leave it in the block.

2. Unnumbered Document - Remove the document from the block and forward it to Receipt and Control.

(1) Send blocked and numbered documents that have been coded and edited to Data Conversion for transcribing.

(2) Unnumbered documents that have been coded and edited will be sent to Receipt and Control for blocking and numbering.

(3) Documents leaving the campus will be sent to Receipt and Control for shipment. Prepare Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip with applicable routing instructions.

(4) Documents not leaving the campus will be sent to the correct function in the campus for the required action. This includes items detached from documents to be processed that require correspondence, accounting, or other action. See IRM 3.11.249.5.2 (1), Other Unrelated Attachments, for preparation of Form 4227, Intra-SC Reject or Routing Slip.

(1) The entity of a tax return identifies the taxpayer on the Business Master File. The entity area of the return has the following:

1. Employer Identification Number (EIN)

2. Name

3. Address

4. Tax Period

(1) The EIN is a nine-digit number (XX-XXXXXXX) assigned to identify the Form 8752, Required Payment or Refund Under Section 7519.

(2) The EIN is to the right of the Name field in the entity area of the return.

(3) Determine the EIN as follows:Employer Identification Number (EIN)

(4) New EIN assigned - If the return was given a new EIN by Entity Control, underline the Name Control. No further editing of the entity data is necessary. See Figure 3.11.249-3, Form 8752 Illustrating EIN Assigned by Entity Control.

(5) Returns with attachments or statements for the following conditions should be routed to Entity Control using Form 13934, Entity Document/C&E Merge Transmittal.

• Name change requiring a new EIN

• Return is filed under another EIN

• Filing requirement was incorrectly established

• Taxpayer files bankruptcy

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

1. Valid characters are alpha, numeric, ampersand (&), hyphen (-) and blank. However, blanks are only valid at the end of the Name Control.

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

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

(3) You must determine the type of entity present on the return because the type of entity determines the Name Control procedures you must use.

1. Individuals

2. Corporations

3. Partnerships

4. Trusts and Estates

5. Other organizations

(4) Edit the Name Control as follows:

Name Control

If	And	Then
a. Able to determine the Name Control,		Underline the Name Control.
b. Unable to determine the Name Control,	Numbered,	Edit CCC "U" on the return. Route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal. Leave return in batch.
c. Unable to determine the Name Control,	Unnumbered,	Research IDRS. (e.g., CC NAMES or CC EINAD or other Command Code). 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.

(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:"In-Care-Of" Name

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

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

• Taxpayer adds a new name

(1) Perfection of the address is necessary when the mailing address (Street or Post Office (PO) Box) is not easily identified.

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

(3) Perfect the address as follows:Domestic Address

(4) Always circle the "In-Care-Of" symbol ("c/o" or "%") if it is present with an address. Do not use the ampersand (&) or the percent sign (%) when editing address information.

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

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

(2) Consider returns with Army Post Office (APO)/Diplomatic Post Office (DPO)/Fleet Post Office (FPO) addresses as domestic addresses.

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

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

1. Edit a two-character alpha code for the U.S. Possession/Territory name.

U.S. Possession/Territory

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

2. A ZIP Code must be present for U.S. Possessions/Territories. Edit the correct ZIP Code if one is not provided. See Exhibit 3.11.249-5, U.S. Possessions/Territories and ZIP Codes.

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

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

2. Circle the foreign country and edit the country code preceded by a "/" and followed by "/$" (e.g., "/GM/$ is edited for Germany). See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, for official foreign country codes.

3. Edit a unique country code for returns filed with an address in Canada. See IRM 3.11.249.10.7, Province and Country Code - Canada.

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

4. 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 above, see Coding and Editing BMF Tax Returns, Foreign Addresses Job Aid (Number 2324-002) for more information.

Province, State, or Territory Address

If	Then
a. A province, state, or territory name is present,	Circle the province, state, or territory name. Edit the correct abbreviation. See Exhibit 3.11.249-4, Province, Foreign State and Territory Abbreviations
b. A province, state, or territory is shown in abbreviated format,	Continue editing the return.
c. 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.

(1) To help Compliance with workload assignment, returns filed with an address in Canada will be edited using a unique country code based on the province/territory.Province and Country Code - Canada

(2) The rest of the foreign address is edited using procedures in IRM 3.11.249.10.6, Entity Perfection - Foreign Addresses.

(1) Do not edit the tax period if the current year form is used unless the taxpayer shows on the top of the return that this is not a current year return (e.g., shows a prior year). Programming automatically inserts the current year when there is no Integrated Submission and Remittance Processing (ISRP) entry and verifies the correct tax rate was used on Line 9a. Generally, Form 8752, Required Payment or Refund Under Section 7519, filers must be for a calendar year.

(2) The tax period for all prior year returns must be edited. Edit the tax period under the title of the form in YYMM format.

(3) If a prior year form is submitted and the taxpayer does not show the tax period, edit "2312" under the title of the form, except when you receive multiple Forms 8752 from the same entity. See Figure 3.11.249-4, Editing of a Prior Year Form 8752.

(4) If multiple Forms 8752 from the same entity using the current year form are received, try to find out the correct tax period to edit. Look at the "applicable election year beginning and ending". Make the latest "ending period" the current calendar year and edit prior year tax periods in descending order as can be best determined. See Figure 3.11.249-5, Multiple Forms 8752 from Same Entity with Current Year Form.

(5) If a Form 8752 is received for a future tax period (e.g., if the tax period ending is after the current processing date), follow instructions below:

1. Edit Computer Condition Code (CCC) "U" on the return.

2. Attach Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip, check the box for Reject Correction (Rejects), and notate "Early Filed". Rejects will research to determine the correct tax period and edit the tax period.

3. Continue processing.

   Note: If a remittance is attached, prepare Form 3244, Payment Posting Voucher, and route to Deposit Activity for processing and posting to the taxpayer's account.

(1) Editing the Centralized Authorization File (CAF) code is no longer required.

(2) The CAF has the type of authorization that taxpayers give to representatives regarding the taxpayers' accounts. Representatives may submit Form 2848, Power of Attorney (POA) and Declaration of Representative, or Form 8821, Tax Information Authorization (TIA). Centralized Authorization File (CAF)

(1) Edit CCC "F" when the taxpayer gives a positive indication that they are not liable for filing future returns. Notations such as (but not limited to) the following:

1. Final

2. Deceased

3. Out-of-Business

4. Liquidation

5. Exempt under IRC 501(c)(3)

6. Dissolved

7. IRC 444 was terminated

   Note: In cases about Form 8752, any references to a "terminating event" may also apply in determining whether this is a final return.

8. Taxpayer checked the box on Line C of Form 8752.

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

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

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

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

(2) Examine the return for attachments.

• Do not separate any related attachments from the return that the taxpayer has 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, or other proper routing slip. Edit an action trail in the lower left corner going vertically up the side of the return.

(3) Determine if Computer Condition Code (CCC) "G" should be edited:Amended Return

(4) The following data must be edited on all Amended returns:

1. Name control - See IRM 3.11.249.10.3, Entity Perfection - Name Control.

2. EIN - See IRM 3.11.249.10.2, Entity Perfection - Employer Identification Number (EIN).

3. Tax period - See IRM 3.11.249.10.8, Tax Period.

4. CCC "G"

5. Received Date - See IRM 3.11.249.11, Received Date.

6. Signature - See IRM 3.11.249.7, Signature.

(5) Do not edit CCC "G" if the taxpayer clearly shows that the return is used to submit a subsequent payment or did not include the payment with the original return filed.

1. Edit CCC "U" on the return.

2. Prepare Form 4227 or other proper routing slip and notate on Form 4227, "Research - Missed or Subsequent Payment".

3. Route to Rejects. They will research to determine if the original return was posted and if the payment was misapplied.

(1) Computer Condition Code (CCC) "O" is edited when a Manual Refund will be issued and a Form 3753, Manual Refund Posting Voucher, Form 5792, Request for IDRS Generated Refund (IGR), or Form 12857, Refund Transfer Posting Voucher, is attached. Verify that the Name Control, EIN, and tax period on the return is the same as the information on the attached form.

1. If a completed Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund (IGR), or Form 12857, Refund Transfer Posting Voucher, is attached to the return, verify that the Name Control, EIN, and tax period on the return is the same as the information on the attached form. Edit CCC "O" if the information is the same.

2. If the data is not the same, refer the return and the attachment to your manager. The manager will send the return and the attached Form 3573, Form 5792, or Form 12857 back to the originating function.

(2) When editing CCC "O", research Integrated Data Retrieval System (IDRS) to determine if a manual refund, Transaction Code (TC) 840 has posted:Transaction Code (TC) 840 (Manual Refund)

(3) A Manual Refund will be issued when the refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(1) Unprocessable Return. Edit this code when the return is too incomplete or illegible for processing. When CCC "U" is edited, continue perfecting the return to the extent possible. See IRM 3.11.249.9, Unprocessable Procedures, for more information.

(2) Edit CCC "U" on misblocked and non-Automated Data Processing (ADP) returns.

(1) Edit CCC "W" when the return processing date is two years and nine months after the return due date or received date, whichever is later.

(2) Edit CCC "W" if the return is stamped "Cleared by Statute."

(3) Form 8752, Required Payment or Refund Under Section 7519, is considered a required deposit by the taxpayer and not a payment of tax due.

(1) On no reply cases for a signature, edit CCC "X" on refund returns. This freezes the release of an overpayment (e.g., freezes the module from refunding or offsetting credit out) at Master File.

(2) With other BMF returns, the "X" freeze may permit the IRS to comply with the taxpayer's request to transfer a part of the refund applied to another account.

• This is not the case with Form 8752

• By law, money held in the taxpayer's Form 8752 (escrow) account, or any money earmarked for that purpose, is not permitted to be transferred to another account

• For this reason, we are unable to comply with the official text recommendations made by the BMF Consistency Task Team

(1) Accept the taxpayer's amount. Exception: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "X" the entry and edit zero (0).

(1) Accept the taxpayer's amount. Exception: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "X" the entry and edit zero (0).

(1) Edit a three-digit code (Deferral Ratio) for the allowable deferral percentage on the dotted part of Line 3 to the left of the taxpayer's entry. There are eleven codes. These codes represent deferrals of one to eleven months (e.g., with "083" representing a deferral of one month and "917" for a deferral of eleven months, respectively) and are shown in the table below, which assumes that the taxpayer's required year is the calendar year.

(2) The "Deferral Ratio" is the three-digit code representing the allowable deferral percentage for the taxpayer's deferral period. The "Deferral Period" means the number of months that occur between the last day of the elected tax year and the last day of the required tax year.

• For example, if the taxpayer elected a tax year ending on September 30 and the required tax year is the calendar year, the deferral period would be three months (the number of months between September 30 and December 31). If the deferral period is three months, edit "250" as the deferral ratio.

• Using the same example (e.g., if the required tax year is the calendar year), the deferral period would be two months for an elected tax year ending in October, while the deferral period would be one month for an elected tax year ending in November. (Edit "167" for the deferral ratio for a deferral period of two months. For a deferral period of one month, edit "083".)

  Note: Per the Tax Reform Act of 1986, the "required" tax year for S Corporations is a calendar year. A partnership's required tax year depends on the tax year of the partners. Statutes may dictate otherwise in circumstances permitting the taxpayer to file fiscal year returns for a legally acceptable business purpose.

(3) Generally, the deferral percentage will not exceed 25% (percent). S corporations and partnerships existing before 1986 were permitted to make an IRC 444 election and keep their old taxable year even if the deferral period was more than three months. If the taxpayer claims an amount greater than 25% (percent), but less than 91.7% (percent), accept taxpayer's amount. If the taxpayer claims more than 91.7% (percent), allow only 91.7% (percent).

(4) The taxpayer may either round the percentage (e.g., show 8% (percent) or 17% (percent) or 67%(percent , rather than 8.3% (percent) or 16.7% (percent) or 66.67% (percent)), or carry the percentage to multiple places (8.33% (percent) or 16.67% (percent) or 66.67% (percent)). In either case, you will edit "083" or "167" or "667."

(5) If the taxpayer enters a percentage that does not approximate the allowable percentages, edit the acceptable code that is:

1. Lower than the percentage claimed, and

2. Closest to the percentage claimed (see example below).

   Example: If the taxpayer enters 12% (percent), edit "083." If the taxpayer enters 21% (percent), edit "167."

3. If the taxpayer enters an amount on Line 3 that is less than 6% (percent), correspond using proper letter (e.g., Letter 3463C, Letter 118C) to ask what the deferral period is. Edit the correct code based on the taxpayer's response. If there is no response, route to Entity Control to determine the correct deferral period.

(6) If the taxpayer enters a deferral ratio in the form of a decimal rather than a percentage, convert to a percentage.

1. Example 1: If the taxpayer enters .17 as the deferral ratio, edit code "167."

2. Example 2: If the taxpayer enters .08 as the deferral ratio, edit code "083."

(7) If the deferral ratio or deferral period (Line 3) can't be determined from the information provided on the return and attachments (e.g., Line 4 amount divided by Line 1 amount equals Line 3), then correspond using proper letter. Edit the correct code based on the taxpayer's response. If there is no response, route to Entity Control to determine the correct deferral period.

(8) If the taxpayer checked the box on Line B (which reads, "If this is the entity's first tax year, skip lines 1 through 10, enter -0- on line 11, and check this box"), then no editing of an entry to the left on Line 3 is necessary. Line B is the second line item located immediately beneath the entity part of Form 8752.

(9) If the taxpayer checked the box on Line C (which reads, "If this form is being filed to claim a full refund of the net required payment balance because of a terminating event, skip lines 1 through 9a, enter -0- on line 9b, complete lines 10 - 12, and check this box"), then no editing of an entry to the left of Line 3 is necessary. Line C is the third line item located immediately beneath the entity part of Form 8752. Computer Condition Code (CCC) "F" may be needed. See IRM 3.11.249.12.1, Computer Condition Code "F" - Final Return, for more information.

(1) Line 4 is the result of multiplying Lines 1 and 3. Accept the taxpayer's amount.

(1) Line 5 is the result of multiplying Lines 2 and 3. Accept the taxpayer's amount.

(1) Accept the taxpayer's amount.

(1) Line 7 can be the result of:

1. Subtracting Line 6 from Line 5, or

2. In the case of a short base year, the taxpayer enters an amount based on the applicable payments made during the deferral period of the applicable election year.

(2) Accept the taxpayer's amount.

(1) Line 8 can be the result of:

1. Adding Line 4 and Line 7, or

2. In the case of a short base year, subtracting Line 7 from Line 4.

(2) Accept the taxpayer's amount.

(1) Line 9a is the result of multiplying Line 8 by the applicable tax rate. Accept the taxpayer's amount.

(1) Line 9b will be either the amount shown on Line 9a or $0, which is the result of multiplying Line 8 by the applicable tax rate.

(2) Accept the taxpayer's amount.

(3) The required payment is intended to represent the value of the tax deferral by the owners of those entities using a taxable year other than the required year. Generally, the tax year is a Fiscal Year (FY) ending in September, October or November. The required payment is considered a deposit.

(1) Accept the taxpayer's amount.

(1) There will be an amount on Line 11 when Line 9b is greater than Line 10.

(2) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ put the refund/balance due amount on the wrong line or on both. In that case, "X" out the amount placed on the wrong line or place the amount on the correct line.

(1) There will be an amount on Line 12 when Line 10 is greater than Line 9b.

(2) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ put the refund/balance due amount on the wrong line or on both. In that case, "X" out the amount placed on the wrong line or place the amount on the correct line.

(3) High Dollar Refunds:

1. If Line 12 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, use Computer Condition Code "U" and route to Rejects with Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip.

2. Notate "Manual Refund" on Form 4227 or other proper routing slip.

(4) If Line 12 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8302, Electronic Deposit of Tax Refund of $1 Million or More, is attached, follow the instructions in (3) a. above. Do not detach Form 8302.

(5) Credit interest will not generate on any Form 8752 refund of any amount at any time. Per Treasury Regulation 1.7519-2T(a)(6)(iii), interest is not allowed with respect to any refund of a required payment claimed on Form 8752. Credit interest can't be input under any circumstance, including where the IRS actions have delayed the issuance of the refund.

(6) A manual refund on a Form 8752 will only be done if the refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(7) The 45-Day Jeopardy rules do not apply to Form 8752, Required Payment or Refund Under Section 7519.

(1) Special to prior year returns - If the taxpayer files prior year returns and the payment(s) posts to one Form 8752, Required Payment or Refund Under Section 7519, tax period module, initiate Accounts Management (AM) action to move the money to the correct tax period(s):

1. Prepare Form 3465, Adjustments Request.

2. Notate on the Form 3465 (under "Other") that the taxpayer filed a prior year return(s) and the payment(s) for the return(s) must be credited to the correct tax period(s).

3. Attach a photocopy of the return(s) to the Form 3465 and route to Accounts Management (AM) for the proper action.

(2) Do not move money to another type of tax module (e.g., Form 1120-S).

(1) Edit CCC "W" when the return processing date is two years and nine months after the return due date or received date, whichever is later.

(2) Edit CCC "W" if the return is stamped "Cleared by Statute."

(3) Form 8752, Required Payment or Refund Under Section 7519, is considered a required deposit by the taxpayer and not a payment of tax due.

(1) See IRM 3.11.249.12.2, Computer Condition Code "G" - Amended Return, for instructions for processing an amended Form 8752, Required Payment or Refund Under Section 7519.

(1) Non-taxable returns with no line entries usually involve the following returns:

1. First tax year Form 8752, where form instructions advise the taxpayer to check the box on Line B, skip Lines 1 through 10, and enter "0" (zero) on Line 11.

2. Final tax year Form 8752, where the taxpayer files to claim a full refund of the net required payment balance because of a terminating event (e.g., election filed under IRC 444 was terminated). Form instructions advise the taxpayer to check the box on Line C, skip Lines 1 through 9a, enter "0" (zero) on Line 9b, and complete the rest of the form.

   Note: Computer Condition Code (CCC) "F" may be needed. See IRM 3.11.249.12.1 Computer Condition Code "F" - Final Return, for more information.

(1) If the return has an address outside of the 50 states and the District of Columbia (APO, DPO or FPO address is not considered foreign), follow the procedures below.

1. If numbered return, edit CCC "U" on the return.

2. Prepare Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip and show that a Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, should be prepared and the return sent to the Ogden Submission Processing Campus (OSPC).

3. If unnumbered return, route the return to the Correspondence function for transmittal to OSPC.

4. If the return is not date stamped, see IRM 3.11.249.11, Received Date.

(2) OSPC only - See IRM 3.11.249.10.6, Entity Perfection - Foreign Addresses, for more information and continue processing the return.

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

• Collection returns (e.g., Transaction Code (TC) 59X or Integrated Collection System (ICS) notated on the face of the return) do not apply to Form 8752, Required Payment or Refund Under Section 7519.

• Compliance (IRC 6020(b)) returns do not apply to Form 8752.

• Substitute For Return (SFR) prepared by Examination (shown in the top margin of the return) do not apply to Form 8752.