3.11.25. Miscellaneous Tax Returns

(1) This IRM supplies general background information about the types of returns processed and the nature of the work that Document Perfection personnel are expected to perform on these returns and documents.

(2) The instructions in this section pertain to the processing of Non-Master File (NMF) Returns. These returns are not processed into a Master File; Individual Master File (IMF) or Business Master File (BMF). Accounting handles the NMF procedures in the Accounting function.

(3) These instructions apply only to Kansas City Submission Processing Campus (KCSPC).

(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

(1) The Director of Kansas City Submission Processing site monitors operational performance for the Kansas City Submission Processing Campus (KCSPC).

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

(3) The Team Manager/Lead handles 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 keep updated IRM procedures.

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

(2) Program Effectiveness is measured using the following:

• Embedded Quality Submission Processing (EQSP)

• Balanced Measures

• Managerial Reviews

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

(1) For Terms, Definitions and Acronyms, see Exhibit 3.11.25-4.

(1) The following resources may assist in performing the work as outlined in this IRM.

• Servicewide Electronic Research Program (SERP)

• Submission Processing Design Center (SPDC)

• Integrated Data Retrieval System (IDRS)

• IRM 3.17.46, Automated Non-Master File Accounting

(1) Submit IRM deviations in writing following instructions from IRM 1.11.2.2.4, When Procedures Deviate from the IRM, and elevated through the proper channels for executive approval.

(1) The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98), IRC 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:

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 and give 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 telephone or in-person) their badge identification (ID Card) number on the first contact.

(1) The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate. Its job is to protect taxpayers’ rights by striving to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights (TBOR). TAS offers free help to taxpayers, including when taxpayers face financial difficulties due to an IRS problem, when they are unable to resolve tax problems, they haven’t been able to resolve on their own, or when they need assistance to address an IRS system, process, or procedure that is not functioning. 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 Wage and Investment (W&I) 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. 

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

• The issue can be resolved within 24 hours.

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

(5) When making a TAS referral, use Form 911, and send to TAS in accordance with your local procedures.

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

(1) There are certain restrictions imposed in the processing of NMF returns which are listed below.

(2) Do not withdraw any remittance return from the originally numbered block.

(3) Indicate misblocked returns by a notation on the Form 813, Document Register.

(4) Keep blocks intact for the Accounting Operation, after which any needed correspondence or adjustment action will be taken. Move full paid returns with Correspondence Action Sheet (CAS) or adjustment requests to top of the block of returns.

(5) Overpayments on returns will be processed from accounting records.

(1) This section includes general instructions for processing all types of forms.

3.11.25.2.5.2 (01-01-2021)

Form 3465, Adjustment Request

(1) Prepare Form 3465, Adjustment Request, if adjustment action is needed.

1. Attach Form 3465 to the return and leave in the block for later adjustment action if the return was blocked and numbered.

2. Use Form 3465 for routing to Accounts Management (AM) for necessary action if the return is not numbered (non-remittance).

(2) Complete the form as follows:

1. Enter the taxpayer's name.

2. Enter the Document Locator Number (DLN).

3. Check Routing box for "Adjustments."

4. Enter the Employer Identification Number (EIN) or Social Security Number (SSN), if present.

5. Enter the period ending, year and month.

6. Enter the tax form number.

7. In the "Remarks" area, enter a brief reason for routing to AM (e.g., "Amended return attached").

8. Complete the blocks for Signature, Unit, Phone and Date.

See Figure 3.11.25-1.

(1) The period for filing a claim for credit or refund has two prongs:

• First, a date by which a claim must be filed with the Service, and

• Second, a limitation on the amount that may be claimed that is decided by "looking back" from the date of the claim to an earlier payment date.

(2) Generally, a claim for credit or refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later, or if no return was filed, within 2 years from the date the tax was paid.

(3) If the claim was filed by the taxpayer within 3 years of the date the return was filed, the amount of the credit or refund is limited to the part of the tax paid within the period, immediately preceding the filing of the claim, equal to 3 years plus the period of any extension of date for filing the return. Any prior year return (amended or delinquent original) received more than 2 years 9 months from the due date, route to the Statute Unit for clearance. Also, refer to IRM 25.6.1.10.2.7.2, Limitations on the Amount of a Claim

(4) Amended returns (including "Revised," "Supplemental," "Correcting," "Duplicate," etc.) must be associated with the original returns for reconciliation and adjustments. This reconciliation is the responsibility of Accounts Management (AM). For remittance returns, no attempt to associate will be made before document analysis.

1. Do not math verify amended returns.

2. Re-enter the remittance amount and circle the edited amount.

3. Prepare Form 3465, Adjustment Request, and attach it to the face of the return.

4. Prepare Form 2275, Records Request, Charge and Recharge, and leave it with the return, in DLN sequence, within the block.

(5) Send any unnumbered, no-remittance, amended returns to AM unless a specific part of this section prescribes different routing instructions.

(6) Send any amended returns with remittance to Cincinnati Accounts Management (CAMC) BMF NMF Team C103, Mail Stop 6111G.

(7) NMF Accounting will send them to AM after they complete their processing.

(1) Any prior year return (amended or delinquent original) received more than 2 years 9 months from the due date route to the Statute Unit for clearance.

(1) Examine all attachments to returns being processed and take any action required by the attachments.

(2) Enter on the attachment(s) the taxpayer's name, address, identifying number, and any other pertinent information. (If the document is numbered, enter the DLN on the attachment(s)). In addition, take the following actions:

(1) A signature and jurat are required for all returns except the following:

• Returns prepared under IRC 6020(b). A Compliance Function representative must sign these returns.

  Note: The Revenue officer's (RO) electronic or typed signature will be accepted as a valid signature on the return.

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

• Dummy returns prepared by IRS.

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

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

(2) Do not correspond for a signature on "CIS" returns that have Form 13596, Reprocessing Returns, attached.

(3) Correspond as follows:

(4) If the jurat is altered or stricken (crossed-out), remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Program (FRP) for review.

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

1. If the "signature declaration" is altered or stricken (crossed out), remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Program (FRP) for review.

2. 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").

(6) Since tax examiners are not expected to be handwriting experts, 26 Code of Federal Regulations (CFR) 301.6064-1 allows the Service to presume that the signature on a return, statement, or other document is the true signature of the person who signed the document.

(7) Faxed (except as part of return perfection, contact with the taxpayer), electronic, digital or typed signatures are not acceptable.

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

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

(2) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(3) The received date will be stamped on the face of the return.

(4) A valid IRS 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., CSCO, Exam, ICT. CIS, AM, etc.)

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

1. 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), Foreign Postmark, or Private Delivery Service (PDS) dates are as follows:

If	Then
An envelope has both a USPS, foreign, or PDS and private metered postmark,	Always use the USPS, foreign, or PDS postmark.
An envelope has two private meter postmarks,	Always use the latest private postmark.
An envelope has only one private meter postmark,	Use the private metered postmark.

2. Service Center Automated Mail Processing System (SCAMPS) digital date

3. Revenue officer's or other IRS official's signature date

4. Signature date (only if within current year)

5. DLN Julian control date minus 10 days

6. Current date minus 10 days

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

(7) Edit the Received Date as follows:

(1) Form CT-2 is a quarterly return which generally covers taxable compensation paid during a single quarter.

(2) Form CT-2 is due on or before the end of the second month following the calendar quarter for which compensation is reported. The following table shows additional due date information for the quarters covered.

(1) Returns are sorted and blocked according to IRM 3.8.45, Deposit Activity - Manual Deposit Process.

(2) Returns blocked full paid by processing campus in series 600-619 are as follows:

1. Tax due shown on returns of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (including precomputed penalty and interest).

2. Timely-filed≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or delinquent but penalty and interest precomputed and paid on return.

3. Marked "Amended," "Supplemental," etc. (regardless of the amount of payment or date filed).

(3) Returns blocked part paid by processing campus in series 900-919 are as follows:

1. Either overpaid or underpaid ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (except returns marked "amended," "supplemental," etc.).

2. Delinquent without penalty and interest precomputed and paid on return.

(1) Ensure that all duplicate copies of Form CT-2 have the entity and tax data entered.

(2) Label copy of the Form CT-2 as "Duplicate copy of Form CT-2" and make copies of attachments of the correspondence for transmittal to the Railroad Retirement Board at the following address:

1. U.S. Railroad Retirement Board
   Chief Financial Officer, 5th Floor
   844 N. Rush St.
   Chicago, IL 60611

(3) Follow local procedures for disposal of all other copies of Form CT-2.

(1) Compute Line 6 if blank. Compute Lines 1, 2, 3, and 4 if necessary to compute Line 6. See Figure 3.11.25-2.

(1) An adjustment on Line 5 must have a supporting document. An adjustment for any amount identified as "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(2) Adjustments in wage information reported for prior quarters must be supported with a statement having the following information:

1. Explanation of the error which the entry intends to correct;

2. The particular return period or periods to which the error relates; and

3. The amount chargeable to each such period.

(1) Form 2438 must be filed on or before the 30th day after the close of the company's taxable year. Leave Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, attached to the Form 2438.

(1) Examine the Form 2438 for completeness, timeliness, the name, address, and EIN. There is no need to check for signature, as a copy of the Form 2438 is attached to Form 1120-REIT or Form 1120-RIC and serves as Schedule D.

(1) Compute the following lines, if blank:

1. Line 4, Net Short-Term Capital Gain (or loss). (Combine the totals in Lines 1 through 3).

2. Line 8, Net Long-Term Capital Gain. (Combine Lines 5 through 7).

3. Line 10, Undistributed Capital Gains. (Subtract Line 9b from Line 9a).

(2) Verify Line 13, Capital Gains Tax, is 21 percent of Line 11, Amount of Undistributed Capital Gains on Line 10, Designated under IRC 852(b)(3)(D). If different, edit the correct amount to Line 13.

(1) Due to the limited number of Form 2438 filed, a distinctive MFT Code is not set up for tax deposits of Form 2438.

(2) Flag all non-remittance balance due and part paid returns.

(3) See Exhibit 3.11.25-2, Form 2438, Undistributed Capital Gains Tax Return, for an example of Form 2438.

(1) Taxpayers must file Form 8831 and pay the tax by April 15 of the year following the calendar year in which the residual interest is transferred to a disqualified organization. If the regular due date falls on a weekend or legal holiday, the due date is the next business day.

(2) A pass-through entity must file Form 8831 and pay the tax due under IRC 860E(e)(6) by the 15th day of the 4th month following the close of its tax year in which the disqualified person is a record holder.

(3) Taxpayers may file Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, to request an extension of time to file Form 8831.

(1) Document Perfection will process all full-paid Form 8831. All refund claim Form 8831 will be processed in AM. If refund claim Form 8831 are received, DO NOT PROCESS. Send to AM using Form 4227, Intra-SC Reject or Routing Slip.

(2) All edited full paid Form 8831 will be sent to Cincinnati Accounts Management (CAMC) BMF NMF Team C103, Mail Stop 6111G via Form 2345, Batch Transmittal.

(3) If amounts are illegible or over 10 digits, examine the form for attachments and edit the correct amount above the taxpayer's figure. If an amount is found on an attachment, but it is illegible or cannot be determined, prepare Form 3696, Correspondence Action Sheet, indicating the information needed from the taxpayer. Attach it to the front of Form 8831 and send to the Suspense Unit.

(4) Form 8831 received with remittance will be sent to Deposit Activity using Form 4227. If the Form 8831 received with remittance is a copy of a previously filed return, DO NOT PROCESS. Send to Cincinnati Accounts Management (CAMC) BMF NMF Team C103, Mail Stop 6111G using Form 4227.

(1) Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

1. Prepare Form 4227, Intra-SC Reject or Routing Slip, and route all amended Forms 8831 to the Cincinnati Accounts Management (CAMC) BMF NMF Team C103, Mail Stop 6111G.

(1) Tax Year - ensure the tax year is in YYMM format and edited under the Office of Management and Budget (OMB) number of the form.

(2) If the name, address, or Taxpayer Identification Number (TIN) is incomplete or missing, review any attachments to obtain necessary information, and edit on the return. If attachments are not available and there is no other method of obtaining the necessary data, proceed as follows:

1. Prepare a Form 3696, Correspondence Action Sheet, showing the information needed from the taxpayer (i.e., missing information, signature).

2. Attach it to the front of the Form 8831 and send to the Suspense Unit.

(1) Always check return attachments before corresponding for missing information.

(2) When corresponding for information, inform the taxpayer that penalties may be assessed (unless reasonable cause is shown) if the requested information is not provided.

(3) Correspond for the following information in Part I, unless Part II and Part III are the only parts completed:

(4) Attempt to obtain all missing information through one contact with the taxpayer, if possible. Allow 45 days suspense on all correspondence. After 45 days, proceed as follows:

1. If the taxpayer responds and gives reasonable cause that meets the criteria in IRM 20.1.1, Penalty Handbook, attach the response to the back of the return and continue processing.

2. If the taxpayer responds but does not meet criteria in IRM 20.1.1, Penalty Handbook, issue correspondence Letter 53C, Penalty and Interest Due: Taxpayer Needs Information (During Initial Processing), to inform the taxpayer their reply did not meet reasonable cause criteria. Also, advise taxpayer a penalty will be assessed if they do not provide the requested missing information. Allow 30 days suspense. If the taxpayer provides the requested information, continue processing the return.

3. If the taxpayer does not reply or response is incomplete, follow procedures as directed under "d" through "f," below.

4. Photocopy the Form 8831, Excise Taxes on Excess Inclusions of REMIC Residual Interests.

5. Prepare Form 3465, Adjustment Request, and attach the Form 8831 photocopy. Notate on the Form 3465 that a penalty is to be assessed because the taxpayer did not provide the requested missing information.

6. Route Form 3465 and attached photocopy to AM.

(1) If present, perfect as described in (2) through (4), below.

(2) If Line 11 is blank and there is an entry on any of Lines 5, 7, or 10, bring the amount forward to Line 11. Figure 3.11.25-3, Form 8831, Editing Line 11.

(3) If Line 11 is greater than Line 12, verify Line 13 by subtracting Line 12 from Line 11. If the amount on Line 13 is different, edit the difference between Lines 11 and 12 to Line 13.

(4) If Line 11 is less than Line 12, delete Line 13, if an entry is present. Edit the difference between Lines 12 and 11 to Line 14 and route to AM.

(1) All edited full paid Form 8831 will be sent to Cincinnati Accounts Management (CAMC) BMF NMF Team C103, Mail Stop 6111G via Form 2345, Batch Transmittal.

(1) Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

1. Prepare Form 4227, Intra-SC Reject or Routing Slip, and route all amended Forms 8612 to the Cincinnati Accounts Management (CAMC) BMF NMF Team C103, Mail Stop 6111G.

(1) The taxpayer enters the tax year at the top of the form under the title. Edit this tax period in YYMM format to the left of the OMB Number.

(2) If the tax period is blank, edit the tax period by checking elsewhere on the form. Check the signature date and, if no signature date, use current processing year.

(1) To math verify the form, use the following:

1. Line 1b is 85 percent of Line 1a

2. Line 2b is 95 percent of Line 2a

3. Line 3c is Line 3a less Line 3b

4. If Line(s) 1b, 2b, 3c, or 4 is wrong, change Lines 4, 9, 10, and 12 or 13

5. Line 7c is Line 7a less Line 7b

6. Line 8 is the total of Lines 5, 6, and 7c

7. Line 9 is Line 4 less Line 8. For negative amounts enter zero

8. If Line(s) 7c, 8 or 9 is wrong, change Lines 9, 10, and 12 or 13

9. Line 10 is 4 percent of Line 9

10. Line 12 is Line 10 less Line 11

11. Line 13 is Line 11 less Line 10

12. If Line 10 is wrong, change Line 12 or 13 as applicable

Note: Due to rounding do not make changes to any line for $1 or less.

(2) If Line 12 or 13 is changed, correspond with the taxpayer using Letter 3024C, Math Error Explained (BMF), to advise that the change was made and the reason for the change.

(3) If any change causes a change from Balance Due to an Overpayment, or from an Overpayment to a Balance Due, edit an "X" to the left of the amount on the wrong line and edit the new amount on the right line.

(4) When the above coding and editing has been completed, send the edited return(s) to the Non-Master File section.

(1) Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

1. Prepare Form 4227, Intra-SC Reject or Routing Slip, and route all amended Form 8613 to the Cincinnati Accounts Management (CAMC) BMF NMF Team C103, Mail Stop 6111G.

(1) The taxpayer enters the tax year at the top of the form under the title. Edit this tax period in YYMM format to the left of the OMB Number.

(2) If the tax period is blank, decide and enter the tax period by checking elsewhere on the form.

(1) To math verify the form, use the following:

1. Line 1b is 98 percent of Line 1a

2. Line 2b is 98.2 percent of Line 2a

3. Line 3c is Line 3a less Line 3b

4. If Line(s) 1b, 2b, 3c, or 4 is wrong, change Lines 4, 9, 10, and 12 or 13

5. Line 7c is Line 7a less Line 7b

6. Line 8 is the total of Lines 5, 6, and 7c

7. Line 9 is Line 4 less Line 8. For negative amounts enter zero

8. If Line(s) 7c, 8 or 9 is wrong, change Lines 9, 10, and 12 or 13

9. Line 10 is 4 percent of Line 9

10. Line 12 is Line 10 less Line 11

11. Line 13 is Line 11 less Line 10

12. If Line 10 is wrong, change Line 12 or 13 as applicable

(2) If Line 12 or 13 is changed, correspond with the taxpayer using Letter 3024C, Math Error Explained (BMF), to advise that the change was made and the reason for the change.

(3) If any change causes a change from Balance Due to an Overpayment, or from an Overpayment to a Balance due, edit an "X" to the left of the amount on the wrong line and edit the new amount on the right line.

(4) When the above coding and editing has been completed, send the edited return(s) to the Non-Master File section.

(1) Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

1. Prepare Form 4227, Intra-SC Reject or Routing Slip, and route all amended Form 8725 to the Cincinnati Accounts Management (CAMC) BMF NMF Team C103, Mail Stop 6111G.

(1) The tax period is determined by the receipt of the first payment from the corporation. This date will appear on the line immediately below the form number. Edit this tax period in YYMM format to the left of the OMB Number.

(1) The return is due and the tax must be paid on or before the 90th day following the initial receipt of greenmail (as shown by the date on the return). See IRM 3.11.25.2.10, Received Date Editing, for instructions.

(1) Math verify the return as follows:

1. Line 2g is the total of the amounts in column 2(c)

2. Line 3 is Line 1 minus Line 2g

3. If Line 2g is wrong, change Lines 3, 5, 6 and 8 or 9 (if applicable)

4. Line 6 is 50 percent of Line 5

5. If Line 6 is wrong, change Line 8 or 9 as applicable

6. Line 8 is Line 6 minus Line 7

7. Line 9 is Line 7 minus Line 6 (if Line 7 is larger than Line 6)

(2) If Line 8 or Line 9 is changed, correspond with the taxpayer using Letter 3024C, Math Error Explained (BMF), to advise that the change was made and the reason for the change.

(3) If any change causes a change from Balance Due to an Overpayment, or from an Overpayment to a Balance Due, edit an "X" to the left of the amount on the wrong line and edit the new amount on the right line.

(4) When the above coding and editing has been completed, send the edited return(s) to the Non-Master File section.

(1) Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

1. Prepare Form 4227, Intra-SC Reject or Routing Slip, and route all amended Forms 8876 to the Cincinnati Accounts Management (CAMC) BMF NMF Team C103, Mail Stop 6111G.

(1) The Tax Period is determined by the receipt of the structured settlement payment rights. The date will appear on the line below the form number. Edit this date in YYMM format to the left of the OMB Number.

(1) The Form 8876 is due by the 90th day following receipt of structured settlement payment rights. See IRM 3.11.25.2.10, Received Date Editing, for procedures.

(1) Math verify the return as follows:

1. Line 3 is Line 1 minus Line 2

2. Line 4 is 40 percent of Line 3

3. If Line 4 is wrong, change Line 6 or 7 as applicable

4. Line 6 is Line 4 minus Line 5

5. Line 7 is Line 5 minus Line 4 (if Line 5 is greater than Line 4.)

Note: Due to rounding do not make changes to any line for $1 or less.

(2) If Line 6 or Line 7 is changed, correspond with the taxpayer using Letter 3024C, Math Error Explained (BMF), to advise that a change was made and the reason for the change.

(3) If any change causes a change from Balance Due to an Overpayment, or from an Overpayment to a Balance Due, edit an "X" to the left of the amount on the wrong line and edit the new amount on the right line.

(4) When the above coding and editing has been completed, send the edited return(s) to the Non-Master File section.

(1) Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

1. Prepare Form 4227, Intra-SC Reject or Routing Slip, and route all amended Form 8924 to the Cincinnati Accounts Management (CAMC) BMF NMF Team C103, Mail Stop 6111G.

(1) The taxpayer enters the date of sale or other disposition on Line 1 of Form 8924. Edit the tax period in YYMM based on this date to the left of the OMB Number.

(1) The due date for filing Form 8924 is the 90th day following the taxable transfer.

(1) If Line 6 is blank and there is an amount on Line 5, multiply Line 5 by 20 percent (.20). Enter the result on Line 6.

(2) If Line 7 is blank and there is an amount on Line 4, multiply Line 4 by 35 percent (.35). Enter the result on Line 7.

(3) If Line 8 is blank, but Line 6 and/or Line 7 have an amount entered, add Lines 6 and 7. Enter the result on Line 8.

(4) Edit IRS Number 012 to the right of Line 8.

(5) When the above coding and editing has been completed, send the edited return(s) to the Non-Master File section.

(1) If the taxpayer files multiple Form 8928 tax returns for IRC 4980B and IRC 4980D with a "summary" Form 8928 for the same tax period, only the "summary" Form 8928 will need to be coded. Leave all supporting Form 8928 tax returns attached to the "summary" Form 8928 for processing.

(1) Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

1. Prepare Form 4227, Intra-SC Reject or Routing Slip, and route all amended Form 8928 to the Cincinnati Accounts Management (CAMC) BMF NMF Team C103, Mail Stop 6111G.

(1) The taxpayer enters the tax year at the top of the Form 8928 under the title. Edit this tax period in YYMM format to the left of the OMB Number.

(1) The due date for filing Form 8928 is dependent on the IRC section for which the return is being filed. The following table reflects the due dates:

(1) Math verify the return as follows:

(2) The following table shows the IRS Number, the applicable IRC section, and the line reported on Form 8928:

(3) If an amount is reported on Lines 16, 34, 36, and/or 38 then edit the right IRS Number 126, 127, 128, and/or 137 to the right of the line reporting the amount.

(4) When the above coding and editing has been completed, send the edited return(s) to the Non-Master File section.