3.11.106. Estate and Gift Tax Returns

ADP

Automated Data Processing

APO

Army Post Office

BMF

Business Master File

c/o

Care of

C&E

Code and Edit

CC

Command Code

CCC

Computer Condition Code

CDP

Collection Due Process

CI

Criminal Investigation

CII

Correspondence Imaging Inventory

CP

Computer Paragraph

CSPC

Cincinnati Submission Processing Center or Cincinnati Submission Processing Campus

DLN

Document Locator Number

DPO

Diplomatic Post Office

EEFax

Enterprise Electronic Fax

e.g.

For Example

EIN

Employer Identification Number

ERS

Error Resolution System

etc.

Et Cetera

Exam

Examination

Fax

Facsimile

FedEx

Federal Express Corporation

FPO

Fleet Post Office

FRP

Frivolous Return Program

ID

Identification or Identity

IDRS

Integrated Data Retrieval System

ISRP

Integrated Submission and Remittance Processing

IMF

Individual Master File

IPU

Interim Procedural Update

IRC

Internal Revenue Code

IRS

Internal Revenue Service

KCSPS

Kansas City Submission Processing Center

LB&I

Large Business and International

MCC

Major City Code

MFT

Master File Transaction

N/A

Not Applicable

OAR

Operations Assistance Request

OID

Original Issue Discount

OMB

Office of Management and Budget

OSPC

Ogden Submission Processing Center or Ogden Submission Processing Campus

P&A

Planning and Analysis

PTIN

Preparer Tax Identification Number

QDT

Qualified Domestic Trust

R&C

Receipt and Control

Rev. Proc.

Revenue Procedure

RO

Revenue Officer

RRA98

Restructuring and Reform Act of 1998

SBSE

Small Business Self-Employed

SCRS

Service Center Replacement System

SERP

Servicewide Electronic Research Program

SFR

Substitute for Return

SLA

Service Level Agreement

SOI

Statistics of Income

SP

Submission Processing

SPDC

Submission Processing Design Center

SSN

Social Security Number

TAS

Taxpayer Advocate Service

TBOR

Taxpayer Bill of Rights

TC

Transaction Code

TE

Tax Examiner

TEGE

Tax Exempt and Government Entities

TETR

Telephone Excise Tax Refund

TIN

Taxpayer Identification Number

TPNC

Taxpayer Notice Code

U.S.

United States

UCC

Uniform Commercial Code

URL

Unidentified Remittance File

USPS

United States Postal Service

W&I

Wage and Investment

YYYYMMDD

Year Year Year Year Month Month Day Day

ZIP

Zone Improvement Plan (Zip code) processing

Fair

Provide accurate and professional service to all persons without regard to personal bias.

For example: Per the Taxpayer Bill of Rights (TBOR), taxpayers have the right to expect a fair and just tax system which provides taxpayers with the opportunity to have their facts and circumstances considered when it might affect their underlying liabilities, ability to pay, or ability to provide information timely.

Significant Entry

Any entry other than zero or blank.

For example: Copy any significant amount on Line 1d to Line 2d, when the amount on Line 2d is blank and the Common Parent’s Name and EIN are blank.

Timely

Coming early or at the right time

For example: A Final return is received after the short period due date but received timely.

A taxable return qualifies and is received within the time-frame prescribed.

1. Prepare Form 4227, Intra-SC Reject or Form 10886, Reject Routing Slip, to alert Cincinnati Compliance Services, Estate and Gift Tax Campus Operation that Computer Condition Code (CCC) "R" ( (Failure to file penalty) determination is requested.

2. Route copy of Page 1 and letter requesting CCC "R" to Centralized Specialty Tax Campus Estate and Gift, Stop 824G that Computer Condition code (CCC)"R" to suppress failure to file penalty.

A qualifying return is "R" coded.

Change the IRS received date and edit to reflect timely filing.

Form 706, United States Estate (and Generation -Skipping Transfer) Tax Return, is annotated at the top of Page 1 of the return (IRC) Section 2201 or has any indications the return is the result of legislation impacting victims of terrorist attacks (April 19, 1995 - Oklahoma City bombing; September 11, 2001 - World Trade Center bombing; or references to deaths resulting from anthrax that occurred on or after September 11, 2001, and before January 1, 2002)

1. Edit CCC "B".

2. A special tax rate schedule will apply to victims of terrorist attacks. Error Resolution System (ERS)/Rejects will verify the appropriate tax computation.

3. All other credits against the estate tax (including unified/applicable credit) apply to these returns.

56

Notice Concerning Fiduciary Relationship

Yes

Prepare Form 4227, Intra-SC Reject Routing Slip, or Form 10886 , Reject Routing Slip, and include Letter of Appointment or pertinent information, and route to Entity.

706

United States Estate (and Generation-Skipping Transfer) Tax Return

Yes

If original return, or copy with original signature, process as directed (See IRM 3.11.106.18 Processing Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return).

706-A

United States Additional Estate Tax Return

Yes

If original return, or copy with original signature, process as directed (See IRM 3.11.106.20, Processing 706-A United States Additional Estate Tax Return).

706-CE

Certificate of Payment of Foreign Death Tax

No

If filed separately, route to Cincinnati Compliance Services, Estate and Gift Tax Campus Operation.

706-D

United States Additional Estate Tax Return Under Code Section 2057

Yes

If original return, or copy with original signature, process as directed (See IRM 3.11.106.21, Processing Form 706-D, United States Additional Estate Tax Return - Under Section 2057).

706-GS(D)

Generation-Skipping Transfer Tax Return For Distribution

Yes

If original return, or copy with original signature, process as directed (See IRM 3.11.106.25, Processing Form 706-GS(D) Generation-Skipping Transfer Tax Return for Distribution).

706-GS(D-1)

Notification of Distribution From a Generation-Skipping Trust

Yes

If original return, or copy with original signature, process as directed (See IRM 3.11.106.26, Processing Form 706-GS(D-1), Notification of Distribution from a Generation-Skipping Transfer). (Forward all separate D-1s Centralized Specialty Tax Campus, Mail Stop 824G.)

706-GS(T)

Generation-Skipping Transfer Tax Return form Terminations

Yes

If original return, or copy with original signature, process as directed (See IRM 3.11.106.27, Processing Form 706-GS(T), Generation-Skipping Transfer for Return for Termination.).

706-NA

United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Non Resident not a citizen of the United States

Yes

If original return, or copy with original signature, process as directed (See IRM 3.11.106.19, Processing Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return of Non Resident not a citizen of the United States Tax Return).

706-QDT

United States Estate Tax Return for Qualified Domestic Trusts

See IRM 3.11.106.28, Processing Form 706-QDT, United States Tax Return for Qualified Trusts.

706 Sch PC

Protective Claim for Refund

Yes

Make a copy of Sch PC, prepare Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip, and send to Centralized Specialty Tax Campus, Mail Stop 824G. Notate on original that a copy has been sent.

706 Sch S (obsolete)

Increased Estate Tax on Excess Retirement Accumulations

No

709

United States Gift (and Generation-Skipping Transfer) Tax Return

Yes

If original return, or copy with original signature, process as directed (See IRM 3.11.106.23, Processing Form 709 United States Gift (and Generation-Skipping Transfer) Tax Return

709-A (obsolete)

United States Short Form Gift Tax Return

Yes

If original return, or copy with original signature, process as directed (See IRM 3.11.106.24, Processing Form 709-A, United States Short Form Gift Tax Return). If copy, leave attached as supporting document.

712

Life Insurance Statement

No

Leave attached as supporting document.

843

Claim for Refund and Request for Abatement

Yes

Send Form 843, Claim for Refund and Request for Abatement to Cincinnati Compliance Services, Estate and Gift Tax Campus Operation on Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip , Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return and Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, series returns).

1127

Application for Extension of Time for Payment of Tax Due to Undue Hardship

Yes

When the request relates to Form 706 or Form 709 Prepare Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip, and send to Centralized Specialty Tax Campus, Stop 824G Do Not forward requests related to income tax.

1310

Statement of Person Claiming Refund Due a Deceased Taxpayer

Yes

Prepare Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip, and route to Accounts Management.

1332

Block and Selection Record

No

2350

Application for Extension of Time to File U.S. Income Tax Return

No

2848

Power of Attorney and Declaration of Representative

Yes

Route as follows: Ogden - Route to Mail Stop 6737
Cincinnati - Route to R&C
Internal Revenue Service
5333 Getwell Rd. Mail Stop 8423
Kansas City - route to
Internal Revenue Service
5333 Getwell Rd. Mail Stop 8423
Memphis, TN 38118
For Private Delivery Carriers
Internal Revenue Service
5333 Getwell Road Mail Sop 84123.
Memphis, TN 38118

3198

Special Handling Notice for Examination Case Processing

No

3233

Report of Gift Tax Examination

No

3465

Adjustment Request

No

3696

Correspondence Action Sheet

No

3696A

IDRS Correspondence Action Sheet

No

3753

Manual Refund Post Voucher

No

See IRM 3.11.106.10.7, CCC “O” Module Freeze.

3893

Re-entry Document Control

No

Stays on the front of return

4349

Computation of Estate Tax Due With Return and Annual Installment

Yes

See IRM 3.11.106.18.8.2, (IRC) Section 6166.

4422

Application for Certificate Discharging Property Subject to Estate Tax Lien

No

1. If attached to Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return,

   • prepare Form 4227, Intra-SC Reject Routing Slip or Form 10886, Reject Routing Slip;

   • attach copies of Form 4422, Application for Certificate Discharging Property Subject to Estate Tax Lien,

   • and Pages 1, 2, and 3 of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return;

   • and route to Cincinnati Compliance Services, Estate and Gift Tax Campus Operation.

4506

Request for Copy of Tax Return

Yes

Route to KC RAVIS Team Mail Stop 6705 S-2

4506-T

Request for Transcript of Tax Return

Yes

Route to KC RAVIS Team Mail Stop 6705 S-2

4768

Application for Extension of Time to File a Return and/or Pay United States Estate (and Generation-Skipping Transfer) Taxes

Yes
(Balance Due Return with Original Form 4768, Application for Extension of Time To File a Return and/or Pay United States Estate (and Generation-Skipping Transfer) Taxes only)
Do not detach copies of 4768 or an Original 4768 on a No balance due return.

Route to Cincinnati Centralized Specialty Tax Campus Estate and Gift, Stop 824G.

4810

Request for Prompt Assessment Under Internal Revenue Code Section 6501 (d)

Yes (Form 709 series returns only)

Send original Form 4810, Request for Prompt Assessment, and copy of Page 1, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, on Form 4227, Intra-SC Reject Routing Slip or Form 10886, Reject Routing Slip, to Cincinnati Centralized Specialty Tax Campus Estate and Gift, Stop 824G.

4868

Application for Automatic Extension of Time to File U.S. Individual Income Tax Return

No

5347

Examination Multiple Request Master File

Yes

Route on Form 4227, Intra-SC Reject Routing Slip or Form 10886, Reject Routing Slip, to Cincinnati Centralized Specialty Tax Campus Estate and Gift, Stop 824 G.

5495

Request for Discharge from Personal Liability Under Internal Revenue Code Section 2204 or 6905

No

Form 5495, Request for Discharge from Personal Liability should stay attached to the return. If the form comes in by itself, then is should be sent to Cincinnati Centralized Specialty Tax Mail Stop 824G using route Form 4227, Intra-SC Reject Routing Slip or Form 10886, Reject Routing Slip.

5792

Request for IDRS Generated Refund (IGR)

No

See IRM 3.11.106.10.7, CCC "O - "Module Freeze.

6459

Return Preparer’s Checksheet IRC 6694 and IRC Section 6695

No

6882

IDRS/Master File Information Request

Yes

Route on Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip, to Customer Service.

7004

Application for Automatic Extension of Time to File Certain Business Income Tax Information and Other Returns.

No

8821

Tax Information Authorization (TIA)

Yes

1. Edit taxpayer name and Social Security Number (SSN) on Form 8821, Tax Information Authorization (TIA), if missing.

2. Edit received date on Form 8821, Tax Information Authorization (TIA).

3. Domestic address -

   • Route to Memphis CAF at:
     Internal Revenue Service
     PO Box 268, Stop 8423
     Memphis, TN 38101.
     Kansas City - route to:
     Internal Revenue Service
     5333 Getwell Rd. Mail Stop 8423
     Memphis, TN 38118

   • Foreign (International) address - Route to Philadelphia CAF.

4. Edit action trail on tax return.

8822

Change of Address

No

Take no action.

8833

Treaty -Based Return Position Disclosure Under Section 6114 or 7701(b)

No

Edit CCC "L". See IRM 3.11.106.10.6.

8886

Reportable Transaction Disclosure Statement

No

8892

Application for Automatic Extension of Time to File Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return

No

8939

Allocation of Increase in Basis for Property Acquired from a Decedent

Yes

Route on Form 4227 Intra-SC Reject or Routing Slip, or Form 10886 , Reject Routing Slip to Cincinnati Centralized Specialty Tax Campus Estate and Gift, Mail Stop 824G.

8971

Information Regarding Beneficiaries Acquiring Property from a Decedent

Yes

Route on Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip, to Cincinnati Centralized Specialty Tax Campus Estate and Gift, Team 106 Mail Stop 8307F.

9465

Installment Agreement Request

Yes

Ogden - Route to Collection.
Cincinnati - Route to R&C.
Kansas City - Route to Mail Stop P4 5000.

12857

Refund Transfer Posting Voucher

No

See IRM IRM 3.11.106.10.7 CCCO Module Freeze

13133

Expedite Processing Cycle

No

Used to flag special returns for processing on an expedite basis (replaces 6469, Expedite Processing Request). See IRM 3.11.106.4.11.3, Examination Prepared and IRM 3.11.106.4.11.4, Examination Secured.

Form 14039-B,

Business Identity Theft Affidavit

No

If the envelope is addressed to a specific function or a specific function is indicated by an IRS CP notice or IRS letter, place the Form 14039-B, Business Identity Theft Affidavit, on top and route Form 14039-B, Business Identity Theft Affidavit, and the return to the specific function.

Cincinnati, Ogden or Kansas City, receives a Form SS-4, Application for an Employer Identification Number and Form 14039-B, Business Identity Theft Affidavit, route the returns to BMF Entity:
201 W. Rivercenter Blvd.
Mail Stop 343
Covington, KY 41011.

For the following returns:

• Loose Form 14039-B.

• No correspondence attached (e.g., no IRS CP notice or IRS letter).

• The envelope is not addressed to a specific function.

Place the Form 14039-B on top of the return and route to the local Image Control Team (ICT).
Cincinnati - Mail Stop 318G.
Ogden - Mail Stop 6552.
Kansas City - Mail Stop C1 6525.

Sch R-1

Generation-Skipping Transfer Tax (Direct Skips from a Trust Payment Voucher)

Yes (If Schedule R-1 has money amounts other than zero on Page 1, Lines 1 through 6; and there is an original signature.)

Rebatch as Program 75700 to Accounting Non-Master File (NMF).

Petitions in opposition of tax law provisions

Yes

Route as follows :
IRS
≡ ≡ ≡ ≡ ≡ ≡
1111 Constitution Avenue, NW
Washington, DC

Other Business Returns (Originals)

(Various return types and titles)

Yes (if the return has an original signature)

Process as directed per code and edit instructions used for processing of that form type.

Copies of Other Business Returns

(various return types and titles)

No

Leave attached to Form 706 and Form 709series returns.

Request for Acknowledgment

No

No action required.

Request for adjustment to another document

Yes

Prepare Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip, and route to Accounts Management for subsequent action. Include: action required, name, address, Social Security Number (SSN) of the taxpayer, and IRS received date.

Other unrelated documents (i.e., requests for tax forms, or letters requiring a reply)

Yes

Prepare Form 4227, Intra-SC Reject Routing Slip orForm 10886 , Reject Routing Slip and route to appropriate area. Include: action required, name, address, Social Security Number (SSN) of the taxpayer, and IRS received date.

The taxpayer writes a question or request for assistance on the return itself

Photocopy the question/request and the taxpayer's Taxpayer Identification Number (TIN), name, and address. Forward this information to the appropriate area via Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip

Data from any removed attachment is necessary to process the return

Copy the removed attachment and attach the copy to the return being processed.

Taxpayer has requested part of the refund be applied to another account

See IRM 3.11.106.10.11, CCC "X - "Return Settlement Frozen.

Remittance is attached

Take to your manager. See IRM 3.8.46.1, Deposit Activity - Discovered Remittance.

An attachment indicates the taxpayer has included tax liability for more than one type of tax on a numbered or unnumbered return

1. Adjustment action is needed, therefore, prepare Form 3465, Adjustment Request; photocopy Page 1 of return, and route to Accounts Management.

   • Leave action trail on left side of return.

2. Edit CCC "X" on return. (See IRM 3.11.106.10.11, CCC "X - "Return Settlement Frozen.)

3. Continue processing return.

An attachment indicates the taxpayer has included more than one tax period on a numbered return (Form 709 series only)

1. Edit Action Code 351.

2. Attach Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip notating, Multiple Tax Periods.

An attachment indicates the taxpayer has included more than one tax period on an unnumbered return (Form 709 series only)

Correspond using Form 3696, Correspondence Action Sheet, or other approved Correspondence Action Sheet.

An attachment to a tax return indicates that this is the final return for which the taxpayer will be liable

Enter CCC "F" on Form 709, United State Gift (and Generation-Skipping Transfer) Tax Return, only. The Date of Death must be in the same year as the gift was given.

An attachment to a return establishes reasonable cause for delinquent filing

1. See IRM 3.11.106.10.8, CCC "R -" Reasonable Cause for Delinquency.

2. Attach the envelope to the back of the return. It may be needed to determine the received date.

Attachment to a return establishes reasonable cause for failure to pay

1. See IRM 3.11.106.10.3, CCC "D" Reasonable Cause for Failure to Pay Taxes Timely.

2. Attach the envelope to the back of the return. It may be needed to determine the received date.

A remittance return and information for preparation of dummy return(s) is available

Edit Action Code 351 and route to the Rejects Function to prepare a dummy return.

Information is not available

Edit Action Code 351 and correspond for information.

An unnumbered return

Correspond using Form 3696, Correspondence Action Sheet or other approved Correspondence Action Sheet.

Non-remittance document is Unprocessables because of an illegible name or erroneous SSN

Route the document to Entity Control using Action Code 320.

Remittance document is Unprocessables because the name is illegible or the SSN is missing

CCC "U" or use Action Code 320 (if name is illegible) or 351 (if SSN is missing), and route to Entity Control.

The taxpayer's TIN and/or name cannot be determined from attachments or after research per local Service procedures, and the return cannot be sent back to the taxpayer for lack of name, and/or address

The return is considered as an Unprocessables return. The following instructions should be followed:

1. Numbered

   • Edit the appropriate CCC or Action Code.

2. Prepare a Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing slip, indicating to the Rejects Unit to void the DLN and destroy the return in accordance with Document 12990, IRS Records Control Schedule(RCS) 29, Tax Administration - Wage and Investment (W&I) Records.

3. Unnumbered

   • Pull from the batch and give to your manager for disposition in accordance with Document 12990, IRS Records Control Schedules (RCS) 29, Tax Administration - Wage and Investment (W&I) Records.

The return meets any of the conditions in the table below

Remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Processing (FRP) for review.

Examination has selected the return as frivolous, e.g., shown by an Action Code 331 and a Form 4227,Intra- Sc Reject Routing Slip or Form 10886 , Reject Routing Slip, with the remarks: "Refer to Exam FRP for audit after processing", but sends the return for processing

Continue processing the return using procedures in IRM 3.11.106. However, do not circle or void the Action Code showing a frivolous return.

Alleged Churches/First Amendment

Income from non-religious sources and may claim a vow of poverty.

Altered Form

Altering any or all line items with the intent of facilitating non-compliance with the tax laws.

Altered Jurat/Uniform Commercial Code (UCC) 1-207 or UCC 1-308

Return contains income and deductions but the jurat has been altered or stricken. May include reference to UCC 1-207, UCC 1-308 or a statement that the return was not signed under penalties of perjury.

Amended Returns/ Form 843 Claim for Refund and Request for Abatement

Amended return or a Form 843, Claim for Refund and Request for Abatement, filed to obtain a total refund of all taxes paid in prior years, based on a tax avoidance argument.

C-Filings

This frivolous position includes the following 4 categories:

1. Files a return claiming various types of deductions, credits, or overpayments/refunds that have no relation to reality and because of their outrageous character, qualify as frivolous returns.

2. Files a return containing the filers identifying information but does not request a refund, often lacking sufficient information to determine a tax liability.

3. Files a return with various types of rambling dialogue and/or confusing arguments that no one could reasonably view as a good faith attempt to comply with the law.

4. Files a return that attempts to send some type of message or protest to the IRS, but fails to include sufficient identifying information for the Service to either determine the identity of the taxpayer or correspondent or return address.

Challenges to Authority/Due Process

Questions various administrative authorities such as delegation orders, summons authority, privacy act, etc. Argues that they must be afforded a hearing or a trial before taxes can be assessed or before property can be seized.

Challenged to Authority/Title 26 or "law" in other documents

Argues that Title 26 of the United States Code is not law because it was never enacted as named.

Collections Issues

Files frivolous documents contending that various collections issues are invalid (e.g., Offers in Compromise, Collection Due Process Requests, Installment Agreements, Appeals Requests, etc.) because they are not filed and/or signed by someone with delegated authority. They may have no certificate of assessment attached, do not comply in form or content with a State or Local law, are not in a certain format or lack a valid OMB (Office of Management and Budget) number or other frivolous positions.

Disclaimer

Submits a disclaimer stating, "disclaims the liability for the tax due", making the liability on the return zero.

Fifth Amendment

Assertion of the Fifth Amendment right against self-incrimination as a basis for not providing any financial information.

IRS is a Private Organization/Collects Tribute, Not Taxes

Argues that the IRS is an entity named the Internal Revenue and Tax Service, Inc., which was incorporated in Delaware in 1933, it is a collection agency for the Federal Reserve Bank, or is part of the United Nations and is clandestinely leading the taxpaying public into a "new world order".

Not a Person

Argues that a taxpayer is not a "person" within the meaning of (IRC) Section 7701(a)(14).

Obscene, Vulgar, Harassing

Submits documents or other materials indicating that non-filing is due to dissatisfaction with tax policies or taxation in general. Often, this argument is expressed with obscene, vulgar, or crude language and characters in an extremely demeaning manner.

Protest Against Government Action/Inaction

Argues that refusal to file or pay is justified because they disagree with government policies or spending plans.

Sixteenth Amendment

Argues the Sixteenth Amendment was not properly ratified and therefore the federal government does not have the legal authority to collect an income tax without apportionment.

"Straw Men"

Argues the government has created an entity separate and distinct from the taxpayer - a "straw man" and any tax obligations are exclusively those of the "straw man".

Taxes are Voluntary/Law Does Not Require

Submits a return, amended return, or correspondence that argues income taxes are voluntary.

U.S. v. Long

Submits a return with zero money amounts much the same as the "Zero Return" category and "U.S. v. Long" is referenced. (See Note in Zero Returns below.)

Unsigned Returns

The individual completes a return but fails to sign. A statement indicating disagreement with the tax system is attached or added to the return.

Valuation

Income is not taxable because of the declining fair market value of the dollar, because the dollar is not backed by gold/silver, because the value of services is offset by the value of the labor (barter income), etc.

Zero Returns

Submits a return with zero money amounts. A statement is attached claiming there is no section of the Internal Revenue Code that established an income tax liability. The statement may also contain arguments regarding the definition of income.

Other

All others including those listed in Notice 2010-33 or any subsequent notice. This category includes non-filer accounts resulting from initial compliance check such as cross-reference TINs.

An Unprocessables estate or gift tax return is received in the mail and indicates tentative, undetermined, etc. (numbered or unnumbered)

1. Enter zeros on all transcription lines, Page 1, except Line 9 Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, and enter the Unified/Applicable Credit amount for Date of Death (DOD) on Lines 9 and 11.

2. For estate and gift tax returns, process as incomplete using the best available information.

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Taxpayer uses an obsolete form as a current year return or files on an improper form, but computer program has been changed to accommodate current revision of form (e.g., Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, for tax periods prior to 7701), and line entries differ from the current year form

1. Renumber form to current year revision, if possible.

2. Copy data to be input to the BMF on current year return.

3. Staple current year return with necessary code and edit markings to the face of taxpayer's prior year return.

4. Use entity data on taxpayer's return, if possible, by cutting off or folding entity portion of the dummy return before stapling to taxpayer's return.

5. NEVER destroy, mutilate, obliterate, or throw away any part or portion of return submitted by taxpayer.

Action Codes include 211, 215, 225 or 226 and Action Code 341,

1. Edit the Action Code 211, 215, 225 or 226 on the Form 706 and 709 families.

2. Edit Action Code 341 on the Form 4227, Intra-SC Reject Routing Slip orForm 10886 , Reject Routing Slip.

Action Codes have the same priority,

1. Edit the Action Code with the shorter suspense period on the Form 706 and 709 families.

2. Edit the second Action Code on the Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip.

3. See IRM 3.11.106.9.2 (6), Action Codes for suspense periods.

Action Codes have different priorities,

1. Edit the Action Code with the higher priority on the Form 706 and 709 families.

   Exception: Use Action Code 211, 215, 225 or 226 before Action Code 341 to ensure the return is complete before a manual refund is issued.

2. Edit the second Action Code on the Form 4227, Intra-SC Reject or Routing Slip.

211 (First Correspondence) or 215 (International Correspondence)

1. Return is illegible, incomplete, or contradictory and therefore cannot be processed.

2. The taxpayer notates on the return or attachment that they are reporting tax for more than one tax period or for more than one type of tax.

225 (Missing Signature Correspondence)

1. Unsigned return (only issue for correspondence).

2. Signature is not original or has been photocopied.

226 (Missing Signature International Correspondence)

1. Unsigned foreign (international) return (only issue for correspondence).

2. Signature is not original or has been photocopied.

480 (Early Filed-Suspense)

Early filed return. See IRM 3.11.106.16.1, Tax Period - Early Filed Returns.

610 (Renumbered Non Remittance) or
611 (Renumbered with Remittance)

Mis-batched return(e.g., Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return (Non-Resident Alien),found in a Form 706, Unites States Estate (and Generation-Skipping Transfer) Tax Return batch of work, orForm 706, United States Estate (and Generation-Skipping Transfer) Tax Return, is found in a batch of Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, etc.).

640 (Void)

To delete the assigned Document Locator Number (DLN) on the return (e.g., Re-entry returns).

211

First Taxpayer Correspondence

40

212

Second Correspondence

25

215

International Correspondence

45

225

Taxpayer Correspondence (Signature Only)

40

226

International Taxpayer Correspondence (Signature Only)

40

310

Statute Control

10

320

Entity Control

10

331

Frivolous Review

3

341

Manual Refund

10

342

Credit Verification

10

343

Black Liquor

10

352

Name Research

3

360

Other in-house Research

10

410

Assistance Needed/Special Handling

3

420

Manager's Suspense

5

480

Early Filed Suspense

150

610

Renumber - Non-remit

0

611

Renumber - Remit

0

640

Void

0

650

International

0

211

First Taxpayer Correspondence

40

CE, EC, S

212

Second Taxpayer Correspondence

25

CE, EC, S

213

Correspondence to Other than Taxpayer

40

CE, EC

215

International Correspondence

45

CE, EC, S

225

Signature Only

40

CE, EC, S

226

Signature Only (International)

45

CE, EC, S

310

Statute Control

10

CE, EC, S

320

Entity Control

10

CE, EC, S

331

Frivolous Review

3

CE, EC

332

Questionable Refund Detection Team (QRDT) Review

3

CE, EC

333

Prompt Audit

10

CE, EC

334

Joint Committee

10

CE, EC, S

335

Frivolous Case

10

CE, EC, S

336

QRDT

10

CE, EC, S

337

Other Criminal Investigation Division (CID)

10

CE, EC, S

341

Manual Refund

10

CE, EC, S

342

Credit Verification

10

CE, EC, S

343

Other Accounting

10

CE, EC, S

351

TIN Research

0

EC, S

352

Name Research

3

CE, EC, S

353

Address Research

3

CE, EC, S

354

Filing Requirements Research

3

CE, EC, S

355

Other Research

3

CE, EC, S

360

Other In House Research

10

CE, EC, S

370

Examination

10

CE, EC, S

410

Assistance Needed/Special Handling

3

CE, EC, S

420

Management Suspense A

5

CE, EC, S

430

Management Suspense B

10

CE, EC, S

440

Management Suspense C

15

CE, EC, S

450

Management Suspense D

20

CE, EC, S

460

Management Suspense E

25

CE, EC, S

480

Early Filed Suspense

150

CE, EC, S

510

Missing Document

0

CE

511

Missing Document 1st Suspense

25

EC, S

512

Missing Document 2nd Suspense

20

S

513

Missing Document 3rd Suspense

20

S

515

Missing Document Short Term

5

EC, S

550

Magnetic Tape Attachment

3

CE

551

Magnetic Tape Inconsistent Data

3

CE

610

Renumber

0

CE, EC

611

Remittance Renumber

0

S

620

NMF/Non-ADP

0

CE, EC, S

630

Re-input

0

EC

640

Void

0

CE, EC, S

650

International

0

CE, EC

660

Data Control Delete
(Tape Edit Processing (TEP) Delete)

0

GEN

670

Deleted Missing Document

0

GEN

700

Duplicate Block

0

GEN

711

Duplicate Document DLN from CE

NA

GEN

712

Duplicate Document DLN from EC

NA

GEN

713

Duplicate Document DLN from Unpostables

NA

GEN

714

Duplicate Document DLN from Unworkable Suspense

NA

GEN

715

Duplicate Document DLN from Workable Suspense

NA

GEN

900

Unpostable Record

0

GEN

A completed Form 3753, Manual Refund Post Voucher; Form 5792, Request for IDRS Generated Refund (IGR); or Form 12857, Refund Transfer Posting Voucher, is attached to the return. (These indicate that a pre-settlement manual refund was made.)

Edit CCC "O".

• (The freeze is released by posting Transaction Code 840.)

Taxpayer has requested part of the refund be applied to another account

1. Edit CCC "X".

2. Photocopy Pages 1 and 2 of the return.

3. Prepare Form 3465, Adjustments Request Prepared on original Return.

   • Attach photocopy and forward to Accounts Management.

4. Notate "Form 3465", Adjustment Request Prepared on original Return.

There is "no reply" to a correspondence and a refund is due

Edit CCC "3" as well.

A decedent is killed in action or died as a result of wounds, disease or injury received while serving in a Combat Zone

1. Edit CCC "Y".

2. The decedent is entitled to lower estate tax per (IRC) Section 2201 and 2011(d).

3. The tentative tax equals 125% of the maximum allowable state death tax credit.

4. All other credits against estate tax (including unified/applicable credit) apply to these returns.

A gift was given in 2022 and the return is filed in 2022 but the return is not due until April 15, 2023)

1. Edit CCC "Y".

2. The return cannot be processed until after December 31, 2022; post it as the month actually received. For example, if the return is received in January 2023, post it as 2301, etc.

3. This applies to remittance returns. (See Figure 3.11.106-5.) Computer Command Code

The return needs correspondence

requires a response

1. Complete Correspondence Action Sheet, or other approved Correspondence Action Sheet indicating the letter number (e.g., Letter 180C, Gift Tax Return Incomplete for Processing Form 709 and Form 709-A, Letter 3463C, Missing Information Request to Process Business Returns and appropriate paragraphs.

   Note: Some paragraphs may require fill-ins to enter, such as tax period, form number, Document Locator Number (DLN), etc.

2. Attach the approved correspondence action sheet or other approved Correspondence Action Sheet to the front of the return below the Entity area.

3. Edit Action Code 211 on Form 706, Form 706-NA, and Form 709.

   • Use CCC "U"

4. Finish editing the return and leave the return in the batch.

Return needs correspondence

does not require a response

1. Complete an approved, correspondence action sheet or other approved Correspondence Action Sheet indicating the letter number, MFT, and the appropriate paragraphs.

   Note: Some paragraphs may require fill-ins to enter, such as tax period, form number, DLN, etc.

2. Photocopy and attach an approved, correspondence action sheet, or other approved Correspondence Action Sheet below the Entity areas on the front of the return. Be sure the name and address shows clearly above the Form 3696, Correspondence Action Sheet or other approved Correspondence Action Sheet.

3. Forward the copy to the Correspondence area.

4. Edit an Action Trail (e.g., "Letter 180C SENT") in the lower left corner going vertically up the side of the return.

5. Finish editing the return and leave in batch.

An unnumbered return is withdrawn from the workflow for correspondence

1. Input through IDRS, (no later than 3 weeks before the delinquency check) a fact of filing to alter the normal delinquency check.

2. Annotate the transaction and closing codes input in the middle left margin of the return.

3. Using Command Code FRM49BB, the codes are as follows:

   1. TC 599-17 Unprocessables Tax Return.

   2. TC 599-18 Return in progress on or after the program completion date.

The return is being sent back to the taxpayer

The above instructions do not apply. TC 599 is not necessary.

"X"

Deletes tax data or indicates do not transcribe an item. For example, if deleting an original entry, edit an "X" to the left of the entry to delete. Edit the correct entry to the left or above the "X"

"/" slash

Indicates do not transcribe a form or schedule.

"//$"

Identifies the beginning and ending of a foreign country code in the entity area. For example, "/EI/$" is edited for "Ireland" or "/GM/$" is edited for "Germany".

"c/o" or "%"

Indicates an "in-care-of" name for transcription.

Circle

Indicates do not transcribe an entry. Also, deletes entity data or a Received Date.

Underline

Do not transcribe an entry. Also, delete entity data or a Received Date.(e.g., name control, tax period and a received date that is other than an IRS stamped date).

Arrow

Indicates the correct placement of a misplaced entry. Use an arrow if the misplaced item is close to the correct line and there is no question where the entry belongs.

Check Mark

Indicates that an entry was manually math verified and is correct.

Bracket/Parenthesis

Indicates a negative numerical amount.

Vertical Line or Decimal Point

Indicates the separation of dollars and cents if no distinction has been made by the taxpayer.

Zero, Dash, None or N/A

"ZERO", "DASH" "NONE" or "N/A" are valid entries except when specific instructions require editing of an entry.

Rocker

Indicates the amount paid when drawn under a remittance amount.

The "Yes" box is checked

Take no action.

The "No" box is checked; neither box is checked; or-both boxes are checked

Circle the Paid Preparer's Phone Number, if present.

The return is early filed and is not a "Final"

1. Edit CCC "U" or Action Code 480.

2. Route the return to Rejects, using Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip, to suspend the return.

The return is early filed and a "Final"

Edit CCC "F".

Early Filed Return Without Remittance

1. Edit CCC "U" or Action Code 480 on the return.

2. Attach Form 4227, Intra- SC Reject Routing Slip or Form 10886 , Reject Routing Slip and note "Early Filed".

3. If unable to determine tax period, prepare Form 3696, Correspondence Action Sheet or other approved Correspondence Action Sheet, to correspond for the correct tax period.

   1. If the taxpayer replies that the tax period is correct as it was originally filed, (i.e., Form 706-GS(D), Generation-Skipping Transfer Tax for Distributions or Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations) suspend the return until January of the year due.

   2. If there was NO reply to correspondence, suspend the return until January of the year due.

   3. If the taxpayer replies that the form (i.e., Form 706-GS(D), Generation-Skipping Transfer Tax for Distributions Form 706-GS(T), Generation-Skipping Transfer Tax for Terminations was for the previous year, correct the tax period 0X12, delete CCC "U" or Action Code, and process the return.

Early Filed Return With Remittance

1. Edit CCC "U" or Action Code 480 on the return.

2. Attach to front of return Form 4227, Intra-SC Reject Routing Slip or Form 10886, Reject Routing Slip and note Early Filed.

3. If unable to determine tax period, prepare Form 3696 Correspondence Action Sheet or other approved Correspondence Action Sheet. Attach to the front of the form (i.e., Form 706-GS(T), Generation-Skipping Transfer Tax for TerminationsForm 706-GS(D), Generation-Skipping Transfer for Distributions or and leave it in the block to correspond for the correct tax period.

   1. If the taxpayer replies that the tax period is correct as it was originally filed, (i.e., Form 706-GS(D) Generation-Skipping Transfer Tax for Distributions ), or Form 706-GS(T), Generation-Skipping Transfer Tax for Terminations) suspend the return until January of the year due.

   2. If there was NO reply to correspondence, suspend the return until January of the year due.

   3. If the taxpayer replies that the return was for the previous year, correct the tax period 0X12, delete CCC "U" or Action Code, and process the return.

4. If a remittance is attached, give to your manager.

SSN is missing

You can determine the correct SSN from the attachments and/or schedules

Edit the SSN to the appropriate location.

Unnumbered

1. Remove return from batch.

2. Attach Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip, to front of return or follow local procedures.

3. Forward to Entity Control for SSN assignment.

The SSN is either a PTIN or Individual Taxpayer Identification Number (ITIN)

Numbered

1. Edit Action Code 320.

2. Attach Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip to front of return for routing to Entity Control and leave document in batch.

Multiple SSNs are present

Unnumbered

1. Remove return from batch.

2. Attach Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip to front of return or follow local procedures.

3. Forward to Entity Control for SSN assignment.

Multiple SSNs are present

Numbered

1. Edit Action Code 320.

2. Attach Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip to front of return and leave in the batch.

The SSN contains any of the following conditions and cannot be determined from attachments and/or schedules:

• Illegible

• Missing

• Other than 9 digits

• All zeroes or,

• All nines

Unnumbered

1. Edit Action Code 320

2. Attach Form 4227, Intra-SC Rejecting Routing Slip or Form 10886, Reject Routing Slip to front of return or follow local procedures.

The SSN contains any of the following conditions and cannot be determined from attachments and/or schedules:

• Illegible

• Missing

• Other than 9 digits

• All zeroes or,

• All nines

Numbered

1. Circle out all illegible SSNs, zeroes or nines.

2. Edit Action Code 320.

3. Attach Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip, to front of return and leave in the batch.

PENDING, APPLIED FOR, etc., is indicated in the SSN area

Unnumbered

1. Research IDRS.

2. If not found, route to Entity. Using Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip, and edit Action Code 320.

PENDING, APPLIED FOR, etc., is indicated in the SSN area.

Numbered

1. Edit Action Code 320.

2. Attach Form 4227, Intra-SC Reject Routing Slip or Form 10886 , Reject Routing Slip to front of return and leave in the batch.

Able to determine the name control

Underline the name control.

Unable to determine the name control

Unnumbered

1. Research IDRS.

2. If found, edit to the proper location.

3. If not found, route to Entity Control following local procedures.

Unable to determine the name control

Numbered

1. Edit Action Code 352.

2. Attach Form 4227, Intra-SC Reject Routing Slip orForm 10886 , Reject Routing Slip, and leave in the batch.

The "in-care-of" name is located below the street address

Arrow the "in-care-of" name above or before the street address. Do Not arrow the "in-care-of" name to the Primary name line area.

The "in-care-of" name is shown on an attachment

Edit the in-care-of name above the street address beginning with the "%" or "c/o" in the first position.

An "in-care-of" name is changed but there is no indication of an address change

Edit the in-care-of name as shown above.

The address contains information other than a street address or PO Box

No perfection is necessary Integrated Submission and Remittance Process (ISRP) will enter the complete address.

An attachment shows the address was changed,

Edit the new address in the Entity section of the return.

Form 8822, Change of Address, is attached

Information is the same

Take no action.

Form 8822, Change of Address, is attached

Information is different

Detach Form 8822, Change of Address and route to Entity Control following local procedures.

Both a PO Box and a street address are shown

1. Notate "TC 014" in the upper left margin. See Figure 3.11.106-6, Entity Edit Marks.

2. Input TC 014.

Two street addresses are shown

1. For Form 706 and Form 709 series returns, underline the first street address.

2. Notate "TC014" in the upper left margin.

3. Input TC 014.

Two PO Boxes are shown

1. For Form 706 and Form 709 series returns, underline the first PO Box.

2. Notate "TC014" in the upper left margin.

3. Input "TC 014".

One street address is shown

The taxpayer changed the address to a PO Box

1. Notate TC014 in the upper left margin.

2. Input "TC 014."

The city and state are not shown on the return but are shown on an attachment

Edit the city and state in the Entity section of the return.

The ZIP code is missing or illegible

Is not available from the return or attachments

See Exhibit 3.11.106-18, State Codes and Zip Codes for determining Zip Code. See Figure 3.11.106-6, Entity Edit Marks.

Only the first 3 digits of the ZIP code can be determined

Edit "01" for the fourth and fifth digits.

It is necessary to edit the street address

See Exhibit 3.11.106-17, Address/Street Abbreviations for Current Address/Street Abbreviations.

340XX

APO/DPO/FPO

AA

090XX-098XX

APO/DPO/FPO

AE

962XX-966XX

APO/DPO/FPO

AP

The foreign address contains a Canadian province/territory name or abbreviation

1. See table below to ensure the correct Canadian province abbreviation is present or edited to the return.

2. Circle out the country name and Edit the appropriate country code based on the province preceded by a "/" and followed by a "/$" as the last entry in the address.

The foreign address does not contain a Canadian province/territory name or abbreviation

1. Circle the country name.

2. Edit the country code /CA/$ as the last entry in the address.

Alberta

AB

XA

British Columbia

BC

XB

Manitoba

MB

XM

New Brunswick

NB

XN

Newfoundland and Labrador

NL

XL

Northwest Territories

NT

XT

Nova Scotia

NS

XS

Nunavut

NU

XV

Ontario

ON

XO

Prince Edward Island

PE

XP

Quebec

QC

XQ

Saskatchewan

SK

XW

Yukon

YT

XY

$12,920,000 and over

2023

$12,060,000 and over

2022

$11,700,000 and over

2021

$11,580,000 and over

2020

$11,400,000 and over

2019

$11,180,000 and over

2018

$5,490,000 and over

2017

$5,450,000 and over

2016

$5,430,000 and over

2015

$5,340,000 and over

2014

$5,250,000 and over

2013

$5,120,000 and over

2012

$5,000,000 and over

2011

$5,000,000 and over

2010