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Part 3. Submission Processing

Chapter 11. Returns and Documents Analysis

Section 13. Employment Tax Returns (Cont. 3)

3.11.13  Employment Tax Returns (Cont. 3)

3.11.13.26  (01-01-2009)
Form CT-1, Employer's Annual Railroad Retirement Tax Return (CSPC only)

  1. Form CT-1, Employer's Annual Railroad Retirement Tax Return, processing is performed only at the Cincinnati Submission Processing Campus (CSPC). If any Form CT-1 returns are received at any other campus, transship to CSPC.

  2. An employer reports taxes imposed by the Railroad Retirement Tax Act (RRTA) on Form CT-1. Railroad employment is subject to a separate and distinct system of taxes from the taxes imposed under FICA (i.e., social security and Medicare taxes) which covers most other employees. There are two levels of taxes or "tiers." Tier 1 provides equivalent social security and Medicare benefits and tier 2 provides a private pension benefit. Prior to January 1, 2002, employers were also responsible for paying a Supplemental Annuity Work Hour tax. However, legislation was passed eliminating the Supplemental Annuity Work Hour tax for year 2002 and subsequent. See Exhibit 3.11.13-15 for current year Form CT-1 transcription lines.

  3. All editing is done on the return using normal editing procedures.

  4. Edit all fields in DOLLARS AND CENTS, unless otherwise directed.

  5. Finalizing Form CT-1: Enter CCC "F" if the taxpayer gives any positive indication they are filing a final return. See IRM 3.11.13.11.3 Non-Taxable Returns With No Line Entries.

  6. If Form CT-1 is received with a Form 8275-R (Regulation Disclosure Statement) attached:

    1. Photocopy the CT–1 and Form 8275-R.

    2. Route the photocopies to Compliance (Examination). They will forward the photocopies to the appropriate Territorial Office.

    3. Code and Edit will process the original return.

3.11.13.26.1  (01-01-2009)
Examining Form CT-1 Return Data

  1. The return format on all returns (e.g. unnumbered and numbered) must correspond to the current year's format.

    1. To convert the return to the current format, you must renumber the lines on a prior revision to the current format. See the table below for the conversion line numbers and special procedures.

      If line(s) number was: (Revision 2001 and prior) ... THEN
      1, 2, 3 or 4 Step 1 - Delete the line by drawing a line through the line number.
      Step 2 - Complete renumbering the line numbers of the return. If line 4, Adjusted total of Supplemental Annuity tax, (Revision 2001 and prior) shows an amount (or it can be computed from entries on lines 1, 2, and 3), enter the amount to the right on line 12, revision 2002 and subsequent. Also, do not enter CCC C if line 12 was blank before the line 4 entry.
      Step 3 - If the taxpayer filed the CT-1 with an entry on new line 12, add this amount to the amount shown on line 4 (Revision 2001 and prior) and enter this total amount on new line 12. If there is no supporting explanation for the initial line 12 adjustment, edit CCC C. Also send a copy of the return to the Railroad Retirement Board.
      5 1
      6 2
      7 3
      8 4
      9 5
      10 6
      11 7
      12 8
      13 9
      14 10
      15 11
      16 12
      17 Delete the line by drawing a line through the number.
      18 13
      19 14
      20 15
      21 16

  2. See IRM 3.11.13.26.2 "Employer-Employee" rate chart. Verify all Form CT-1 returns using the appropriate rate.

  3. If any of the taxpayer's entries on the lines are not legible, place an Asterisk (*) to the left of the taxpayer's entry and enter the correct figure.

  4. Large depositors will fill out Form 945-A, Annual Record of Federal Tax Liability.

  5. Edit CCC "P" on a current year period return when:

    • The return has the unique identifier of "(77)" in the top left margin next to the literal "Internal Revenue Service" . See Figure 3.11.13-97

    • The taxpayer is requesting a tax package for the return being filed.

      Exception:

      Do Not edit a CCC "P" if the return is amended, final, or a prior tax period.

    Figure 3.11.13-97

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form CT-1 Requiring editing of CCC P

3.11.13.26.2  (01-01-2009)
Form CT-1 Lines

  1. Lines 1 (Tier l - Employer Tax) through 10 (Tier l- Employee Medicare Tax–Sick Pay): There must be entries on lines 1 through 6.

    IF THEN
    There are entries in the tax area, but no entries in the Compensation area, Divide the tax shown by the appropriate factors in the "Employee–Employer" chart below. Enter the compensation figures for each line.
    Form CT-1 is received with a Form 8275-R (Regulation Disclosure Statement) attached, Step 1 - Photocopy the CT-1 and Form 8275-R,
    Step 2 - Route the photocopies to Compliance (Examination). They will forward it to the appropriate Territory Office,
    Step 3 - Continue to process the original return.

    EMPLOYER–EMPLOYEE TAX RATE

    Return Tax Year   Rate Rate Factor
    2001 Employer Tax
    Tier I - Compensation 6.2 16.1290
    Tier I - Medicare
    (on Wages)     		1.45 68.9655
    Tier II– - Compensation 16.1 6.2112
    Tier I - Sick Pay 6.2 16.1290
    Tier I - Medicare ( on Sick Pay) 1.45 68.9655
    Employee Tax
    Tier I - Compensation 6.2 16.1290
    Tier I - Medicare (on Wages) 1.45 68.9655
    Tier II - Compensation
    (for Tips)     		4.9 20.4082
    Tier I - Sick Pay 6.2 16.1290
    Tier I - Medicare
    (on Sick Pay)     		1.45 68.9655
    2002 Employer Tax
    Tier I - Compensation 6.2 16.1290
    Tier I - Medicare
    (on Wages)     		1.45 68.9655
    Tier II - Compensation 15.6 6.4103
    Tier I - Sick Pay 6.2 16.1290
    Tier I - Medicare ( on Sick Pay) 1.45 68.9655
    Employee Tax
    Tier I - Compensation 6.2 16.1290
    Tier - –Medicare (on Wages) 1.45 68.9655
    Tier II - Compensation
    (for Tips)     		4.9 20.4082
    Tier I - Sick Pay 6.2 16.1290
    Tier I - Medicare
    (on Sick Pay)     		1.45 68.9655
    2003 Employer Tax
    Tier I - Compensation 6.2 16.1290
    Tier I - Medicare
    (on Wages)     		1.45 68.9655
    Tier II - Compensation 14.2 7.04225
    Tier I - Sick Pay 6.2 16.1290
    Tier I - Medicare ( on Sick Pay) 1.45 68.9655
    Employee Tax
    Tier I - Compensation 6.2 16.1290
    Tier I - Medicare (on Wages) 1.45 68.9655
    Tier II - Compensation
    (for Tips)     		4.9 20.4082
    Tier I - Sick Pay 6.2 16.1290
    Tier I - Medicare
    (on Sick Pay)     		1.45 68.9655
    2004 Employer Tax
    Tier I - Compensation 6.2 16.1290
    Tier I - Medicare
    (on Wages)     		1.45 68.9655
    Tier II - Compensation 13.1
    7.6336
    Tier I - Sick Pay 6.2 16.1290
    Tier I - Medicare ( on Sick Pay) 1.45 68.9655
    Employee Tax
    Tier I - Compensation 6.2 16.1290
    Tier I - Medicare (on Wages) 1.45 68.9655
    Tier II - Compensation
    (for Tips)     		4.9 20.4082
    Tier I- -Sick Pay 6.2 16.1290
    Tier I - Medicare
    (on Sick Pay)     		1.45 68.9655
    2005 and subsequent Employer Tax
    Tier I - Compensation 6.2 16.1290
    Tier I - Medicare
    (on Wages)     		1.45 68.9655
    Tier II - Compensation 12.10 7.9365
    Tier I - Sick Pay 6.2 16.1290
    Tier I - Medicare ( on Sick Pay) 1.45 68.9655
    Employee Tax
    Tier I - Compensation 6.2 16.1290
    Tier I - Medicare (on Wages) 1.45 68.9655
    Tier II - Compensation
    (for Tips)     		3.9 22.7272
    Tier I - Sick Pay 6.2 16.1290
    Tier I - Medicare
    (on Sick Pay)     		1.45 68.9655

  2. If lines 1 through 10 cannot be perfected, initiate correspondence to secure the missing data. Enter AC 225 on the return.

    IF THEN
    The taxpayer provides what appears to be an inadequate reply, or does not reply, Step 1 - Enter the amount on line 1 to line 2, or vice versa.
    Step 2 - Enter the line 1 amount on lines 3, 4, 5, and 6, if they are blank.
    Note: If taxpayer replies that the organization is not liable for Tier II tax (lines 3 and 6), do not enter an amount on these lines.

  3. Lines 7 through 10 are used to report sick pay paid by an employer or third-party payer and is subject to Tier I tax. Accept any figure(s) on these lines.

  4. Line 12, Adjustments to Employer and Employee Railroad Retirement Taxes Based on Compensation:

    1. If line 12 has an entry, accept an increase or ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for correction of tax reported on an earlier return.

    2. Accept any adjustments identified as fractions.

    3. Any increase on line 12 during the current tax year adjusting prior year compensation is taxable at the current year tax rates.

  5. See IRM 3.11.13.18, 94X Adjusted Return Procedures, when:

    • A prior year revision (2008 and prior) filed for a 2009 and subsequent Tax Period showing an amount on Line 12

    • A 2009 and Subsequent Revision Form CT-1 with Form 941c attached

    • Form CT-1 with a Form 94X attached

  6. Edit a CCC "C" if there is a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is not attached. See IRM 3.11.13.17 for the requirement(s) of a Form 941c or supporting statement.

  7. Credit may be taken on line 12 for any uncollected Railroad Retirement tax due on taxable tips currently reported, provided the employer attaches a statement stating sufficient wages or funds were not available from the tax withheld. If such a statement is not attached, correspond for an explanation of the credit.

  8. Photocopy any Form CT-1 with adjustments on line 12, and any supporting documentation. Route the copies to:
    The Railroad Retirement Board (RRB)
    Bureau of Fiscal Operations
    844 Rush Street
    Chicago, Illinois 60611

  9. Determine if any portion of the adjustment is barred by the Statute of Limitations by examining the supporting statement or Form 941c. See IRM 3.11.13.35 and IRM 3.11.13.17.4 for specific instructions on the Statute of Limitations and barred periods.

  10. If line 13 is blank, zero or "none" , compute by adding lines 11 and 12.

    Note:

    Transcribe FTD credit from line 14 and the Balance Due/Overpayment from lines 15 or 16.

  11. If a pre-computed penalty or interest is shown on the return by the taxpayer:

    1. Perfect Line 15 Balance Due Amount to exclude the penalty and/or interest amount from the return.

    2. Perfect Line 16 Overpayment Amount to include the penalty and/or interest amount on the return.

3.11.13.26.3  (01-01-2009)
♦Third Party Designee♦

  1. The Third Party Designee election was created to allow a designated individual to disclose information about the taxpayer regarding Form CT-1 with the IRS, should questions arise during processing.

3.11.13.26.3.1  (01-01-2009)
♦Third Party Designee Checkbox♦

  1. The Third Party Designee Checkbox is located above the taxpayer signature area. It indicates whether the taxpayer has elected to allow the Third Party Designee to inquire about the return as it is processed.

  2. No action is required.

3.11.13.26.3.2  (01-01-2009)
♦Third Party Designee Personal Identification Number (PIN)♦

  1. Asterisk (*) to the left of the entry, if illegible. This field can be up to 5 characters long. The entry may be any combination of Alpha (A-Z) and numeric (0-9). The PIN number is self-selected by the taxpayer or designee. It is not assigned by IRS.

3.11.13.26.4  (01-01-2009)
♦Paid Preparer SSN or PTIN♦

  1. The Preparer's SSN must be a nine-digit number. The SSN cannot be all zeroes or all nines.

  2. A Preparer Tax Identification Number (PTIN) is a eight-digit number beginning with the alpha "P" (e.g., PXXXXXXXX).

  3. Asterisk (*) to the left of the Preparer's SSN or PTIN if it is invalid.

3.11.13.26.5  (01-01-2009)
♦Paid Preparer EIN♦

  1. The Preparer's EIN must be a nine-digit number. The EIN cannot be all zeroes or all nines.

  2. Asterisk (*) to the left of the Preparer's SSN or PTIN if it is invalid.

3.11.13.26.6  (01-01-2009)
♦Paid Preparer Phone Number♦

  1. No action is required on amended returns.

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

  3. If the Paid Preparer's Phone Number is incomplete, illegible, or less than 10-digits, review the return and all attachments.

    Note:

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

    IF THEN
    A complete Paid Preparer's Phone Number is located else where on the return or attachment, Edit to the"Phone Number." line.
    A complete Paid Preparer's Phone Number is not located or the number is illegible, Asterisk (*) to the left of the incomplete or illegible phone number.

3.11.13.27  (01-01-2009)
♦Amended Returns♦

  1. An amended return may be identified by such words as "Amended" , "Corrected" , "Supplemental" , "Duplicate" , "Additional" , or any other positive indication that the taxpayer has filed previously. Filing a "Copy" of a return is not sufficient reason to label a return "Amended" unless accompanied by a positive statement from the taxpayer.

  2. Examine the return for attachments. Do not separate any related attachments from the return the taxpayer has submitted to explain the reason for the Amended return. This information will be used by Accounts Management. Detach any unrelated documents and route them to the appropriate function using Form 4227. Edit an Action Trail on the return.

  3. There is an indication the return is amended and:

    IF THEN
    TC 59X or ICS was entered on the return by compliance services, Do not edit CCC "G" .
    Process the return as an original.
    The return is stamped "Delinquent Original Cleared for Processing" by Statute,
    None of the above are present, Forward Return to Accounts Management.

    Note:

    The Receipt and Control function within all BMF Submission Processing Campuses were mandated to locally develop sort procedures for non-remittance Employment Returns marked "Amended" or "Corrected" . After sorting, these returns are forwarded to Accounts Management for their consideration. Therefore, if a non-remittance Form 941 marked "Amended" or "Corrected" is received within Code and Edit, do not perfect the return; forward the return to Accounts Management . This is a minimum acceptable standard. Additionally, Code and Edit may receive a Form 941 with "Amended" or "Corrected" circled. DO NOT FORWARD THESE RETURNS TO ACCOUNTS MANAGEMENT.These returns are being re-input as original returns by Accounts Management. Therefore, continue to perfect these return using the Code and Edit procedures provided in IRM 3.11.13. See figure 3.11.13-98

    Figure 3.11.13-98

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Editing an Amended Return

  4. If the return has a TC 59X or ICS which was entered by Compliance (Collections) Services and any indication of an amended return, process the return as an original. Do not edit CCC "G" on these returns.

  5. The following data must be present on all amended returns:

    Exception:

    Non-remit Forms 941, send to Accounts Management without perfecting.

    • Name Control (unless the Check Digits are present)

    • EIN

    • Tax Period

    • CCC "G"

    • Received Date

    • Signature

    Caution:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.11.13.28  (01-01-2009)
Early-Filed Returns Quarterly and Annual

  1. An Early-Filed quarterly return, is a return where the Tax Period Beginning Date, is after the current date (e.g. Form 941 being filed for 200812 filed on September 1, 2008 the 200812 tax period begins on October 1, 2008).

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

  3. Never send back an Early-Filed return to the taxpayer. Use the Following table to process an Early Filed Return:

    Note:

    When correspondence issues are present on a Early Filed return, edit the Correspondence Action Code to the return and edit the Suspense Action Code (AC 480) on Form 4227.

    Exception:

    See IRM 3.11.13.13.4 If Multiple Tax Periods are indicated.

    IF THEN
    The return is Early-Filed and is not a "Final" , Step 1 - Edit Action Code 480 in the left hand side of the bottom margin of the return,
    Step 2 - Continue to processing return and leave return in batch to be processed.
    The return is Early-Filed and a "Final" , Step 1 - Edit CCC "F" on the return,
    Step 2 - Edit Action Code 480 in the left hand side of the bottom margin of the return,

    Note:

    Edit Action Code 480 only when the criteria for the applicable return tax period stated in (1) or (2) has been met.


    Step 3 - Continue to processing return and leave return in batch to be processed.

    Note:

    See IRM 3.11.13.11.3 Non-Taxable Returns With No Line Entries.

3.11.13.29  (01-01-2009)
Use of FAX for Taxpayer Submission

  1. Tax return information can be received via fax as part of return perfection even if a taxpayer signature is required. In circumstances where contact with the taxpayer has been made and documented, fax signatures are acceptable.

    Note:

    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3.2 Also, before leaving any messages on a taxpayer's answering machine, review IRM 11.3.2.6.1. Fax procedures contained in IRM 11.3.1.10 must be reviewed prior to faxing confidential information to the taxpayer.

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

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

3.11.13.30  (01-01-2009)
♦Potential Frivolous and Claims♦

  1. A frivolous argument is used for the purpose of expressing dissatisfaction with the substance, form, or administration of the tax laws by attempting to illegally avoid or reduce tax liabilities. Recognized frivolous arguments made by businesses include, but are not limited to, the examples in IRM 4.10.12 Frivolous Return Program shown in See Exhibit 3.11.13-21.
    Note: Returns having only zeros, no entries, are blank, or indicate "None" , "Not Liable" , etc. with no evidence of frivolous arguments are not to be considered as frivolous returns.

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

    IF THEN
    The return meets any of the conditions shown in Exhibit 3.11.13-21,
    Caution: If the return shows an Action Code 440 (OSPC) or 331 (CSPC), a CCC X and has a Form 4227 attached with the remarks,"Refer to Exam FRP for audit after processing" .    		 Remove the return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Processing (FRP) to review.
    NOTE: IRM 4.10.12.1.3.3 requires Examination to expedite the return and make a determination whether it qualifies as a frivolous return within 2 business days. If a determination is not made within the allowed time frame, the Examination FRP examiner will edit on the return Action Code 440 (OSPC) or 331 (CSPC) to identify it as a potential frivolous filer in the lower left hand margin.
    Examination has selected the return as frivolous, e.g. indicated by an Action Code 440 (OSPC) or 331 (CSPC), a CCC X, and a Form 4227 with the remarks, "Refer to Exam FRP for audit after processing" , but it sends the return to processing, Continue to process the return using the procedures in the applicable IRM 3.11.13 or 3.12.13. for your function. However, do not circle or void the Action Code, or CCC X indicating a frivolous return.

3.11.13.31  (01-01-2009)
♦Re-Entry Document Procedures♦

  1. A return posted to the wrong account or module or attempting to post must be reprocessed to post to the proper account or module.

  2. Some re-entry returns may have originally been filed electronically ("E-File" ). These returns may be identified by the presence of Mod E-File printouts in lieu of an actual return or "TRPDT PRINT DO NOT PROCESS" printed on the top margin. Do not correspond for missing signatures on these documents.

  3. Each re-entry return must have a Form 3893, Re-entry Document Control or Form 13596, Reprocessing Returns attached. This will indicate to the examiner that special handling is required.

    • Form 3893 is used to re-input documents.

    • Form 13596 is used to reprocess documents.

  4. Always leave a Form 3893 or Form 13596 on the front of the return. It must remain as a permanent part of the document. See figure 3.11.13-99 for an example of 3893 attached to a return.

    Exception:

    If the return is more than 2 years and 6 months from return due date, do not use Form 3893 or Form 13596 reprocessing procedures. Route the return to the Statute Control Unit following statute procedures.

    Figure 3.11.13-99

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Form 3893 - Re-Entry Return

  5. Examine the Form 3893 and/or Form 13596 to determine the action to be taken to make the return processable.

    IF THEN
    Form 3893 or Form 13596 is missing, Step 1 - Edit Action Code 640.
    Step 2 - Route to Receipt and Control using Form 4227.
    Step 3 - Leave the return in the batch.
    Form 3893 or Form 13596 is attached, Determine if the return was edited according to current processing instructions.

3.11.13.31.1  (01-01-2009)
Form 3893 - Re-Entry Document Control

  1. Form 3893, Re-Entry Document Control, is used to re-input a return that has not posted to an account or module.

  2. If more than one return is in the batch and only the top Form 3893 has an entry in box 1 (Alpha / Numeric block control no.), edit all returns using current processing procedures and keep all returns clipped together.

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

    Note:

    Do not send letter 1382C if a request for reasonable cause is attached.

  4. If the return was edited according to current processing procedures, ensure that the information from Form 3893 is edited to the return.

    FORM 3893 BOX ACTION TAKEN
    Box 14 (Remarks), Ensure that the information is edited to the return.
    Box 15 (Process as), Step 1 - Circle out the green rocker money and edit marks that may indicate a receipt of remittance,
    Step 2 - Do not change any tax due amounts.

  5. Examine returns that have any color other than green editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.

    IF THEN
    Improper perfection, Edit the same correction in green to the appropriate area.
    Taxpayer error, Leave the entries as shown on the document.

  6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  7. When additional information is still needed to make the return processable, prepare Form 13195 or Form 4227 for the appropriate action (e.g. correspondence, research, etc.).

  8. When perfection is not possible, edit Action Code 640 on the return and attach Form 4227 noting, "Perfection not possible" and return to initiator.

3.11.13.31.2  (01-01-2009)
Form 13596 - Reprocessing Returns

  1. Form 13596, reprocessing Returns, is used to reprocess a returns to the correct account or module that has previously posted to the wrong account or module.

  2. If the return was not edited according to current processing procedures, circle out any action codes, computer condition codes (including CCC "G" ) and any other edit marks that is no longer applicable. Re-edit according to current processing procedures.

    Note:

    Do not edit CCC "G" on an amended return.

  3. If the return was edited according to current processing procedures, ensure that the information from Form 13596 is edited on the return.

    Form 13596 Action Taken
    TIN correction, Edit correct TIN on return.
    tax period correction, Edit correct tax period ended on return.
    Reasonable cause, Edit appropriate computer condition code.

    1. Edit CCC"R" if the "FTF" box is checked.

    2. Edit CCC "D" if the "FTP" box is checked.

  4. Examine returns that have any color other than green editing in the tax data section, to determine if the corrections are the result of improper perfection or taxpayer error.

    IF THEN
    Improper perfection, Edit the same correction in "green" to the appropriate area.
    Taxpayer error, Leave the entries as shown on the document.

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  6. Circle out the green rocker and edit marks that may indicate a receipt of remittance.

3.11.13.32  (01-01-2009)
♦Refund Returns - 45-Day Jeopardy and Million Dollar Refunds♦

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

    Note:

    Expeditious processing of refund returns is critical if the 45-day period is about to expire.

    IF THEN
    A refund is batched in a non-refund batch, Step 1 - Completely edit the return.
    Step 2 - Pull the return from the non-refund batch and merge into a refund batch using local procedures.

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    The processing date is more than 20 days after received date or, the return due date (whichever is later) and the 45-day interest free period is in jeopardy ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Refund in this instruction means only the amount requested to be refunded to the taxpayer, not over payments transferred to other periods.

    		Step 1 - Edit Action Code 341.
    Step 2 - Attach Form 4227 and give the return to the lead examiner or manager.
    The refund ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , Step 1 - Do not leave the return in the block,
    Step 2 - Edit Action Code 341 for numbered and unnumbered returns,
    Step 3 - Attach Form 4227 and give the return to the lead examiner or manager.
    The W&I Submission Processing Liaison for TAS issues walks a return through Code & Edit, In addition of normal editing, perform the actions below:

    1. Edit CCC "O" to freeze the refund.

    2. Edit CCC "Y" to send the return to ERS.

3.11.13.33  (01-01-2009)
Correspondence Imaging System (CIS) Returns

  1. Correspondence Imaging System (CIS) is an inventory system for scanning all Accounts Management (AM) receipts (including Form 941, Schedule B and 941c) into digital images and working the cases from those images.

  2. CIS returns are identified with "CIS Image. Do not correspond for signature" stamped below the signature line or CIS annotated on the front of the return. See Figure 3.11.13-100

    Figure 3.11.13-100

    This image is too large to be displayed in the current screen. Please click the link to view the image.

  3. Follow the instructions below for processing "CIS" returns:

    IF AND THEN
    The "CIS" return has a Form 13596 or 3893 attached,

    Note:

    If there is an indication on the return that correspondence has been sent (e.g. CCC "3" is edited on the return), do not route the return to Accounts Management.
    Continue processing the return.

    		The return is not complete (e.g., missing signature, schedules, or forms), Remove the return from the batch and route to Accounts Management.

    Note:

    Do Not correspond for missing information on "CIS" reprocessable returns.

    The "CIS" return does not have a Form 13596 or 3893 attached, The return is not complete (e.g., missing signature, schedule, or forms), Follow normal correspondence procedures.

3.11.13.34  (01-01-2009)
♦Secured/Prepared Returns♦

  1. Compliance functions secure returns from the taxpayer and also prepare returns if the taxpayer does not provide them.

    1. Returns notated "6020(b)" are prepared by Collection.

    2. Returns notated "TC 59X" or "ICS" are secured by Collection.

    3. Returns notated "SFR" (Substitute for return) with an attached Form 13133 (Expedite Processing Request) are prepared by Examination. The "Substitute for Return" box on Form 13133 should be checked.

    4. Returns notated "Process as original" with an attached Form 13133 (Expedite Processing Request) are secured by Examination. The "Delinquent Return" box on Form 13133 should be checked.

    Note:

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

3.11.13.34.1  (01-01-2009)
♦IRC 6020(b)- Prepared by Collections♦

  1. When the taxpayer fails to file a required return, § 6020(b) of the Internal Revenue Code is the authority for the IRS to prepare the return. See Figure 3.11.13-101.

  2. These are identified by a notation, such as: "PREPARED AND SIGNED UNDER AUTHORITY OF SECTION 6020(b) OF THE INTERNAL REVENUE CODE" (or any notation of "IRC 6020(b)" ), which is located in the center bottom margin Page 1 of the return. These return should also indicate "TC 599 cc38" or "TC 599 cc39" in the left upper margin.

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

    2. Returns must be signed by Compliance Function. Accept a 6020(b) return as signed, when Form 5604 Section 6020(b) Action Sheet is attached and a signature is in the "Signature of Initiating Collection Employee" box.

      Note:

      All unsigned 6020(b) returns received in Document Perfect must be brought to the attention of the campus Planning and Analysis analyst for proper handling. Consider a 6020(b) return signed by the taxpayer a "signed" return.

      Note:

      Once it has been determined the 6020(b) is unsigned discontinue editing the return and forward as an unsigned 6020(b) return.

    3. Edit CCC "4" .

      Note:

      CCC "R" should not be used with CCC "4"

      .

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

    5. Edit CCC "D" if the Compliance Function notates: "DO NOT ASSESS FAILURE TO PAY PENALTY" .

    6. Do Not send the return back or correspond with the taxpayer for unprocessable conditions.

    7. Edit CCC "W" if the received date is more than 2 years and 9 months after the return due date. Do Not send the return to Statute Control.

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

    Figure 3.11.13-101

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    Return Prepared Under Internal Revenue Code 6020(b)

3.11.13.34.2  (01-01-2009)
♦Collection Secured♦

  1. These returns are identified by the notations: "TC 599 cc17" or "ICS" .

    1. Do Not edit CCC "G" on these returns.

    2. Correspond for conditions that cannot be processed (e.g. missing signatures, missing schedules, etc.)
      Exception: a taxpayer's signature on a notice with a jurat is acceptable.

    3. Edit CCC "W" if the received date is more than 2 years and 9 months after the return Due Date. Do Not send to Statute Control function.

3.11.13.34.3  (01-01-2009)
♦Examination Prepared Returns♦

  1. These returns are identified by the notation "SFR" or "SUBSTITUTE FOR RETURN" on Page 1.

    1. Return must have a Received Date. If no Received Date is present, follow the normal procedures for editing the Received Date.

    2. Do not send back or correspond with the taxpayer for unprocessable conditions. If the return is completely unprocessable, use "No Reply" procedures.

    3. If Form 13133 is attached, edit the computer condition codes that are checked on the form.

    4. Edit CCC "W" if the received date is more than 2 years and 9 months after the return Due Date. Do Not send to Statute Control function.

3.11.13.34.4  (01-01-2009)
♦Examination Secured Return♦

  1. These returns are identified by the notation "Process as original" on the return and a Form 13133 attached with the "Delinquent Return" box checked.

    1. Do Not edit CCC "G" on these returns.

    2. Correspond for conditions that cannot be processed (e.g., missing signatures, missing schedules, etc.)

      Exception:

      A taxpayer's signature on a notice with a jurat is acceptable.

    3. On the attached Form 13133, review the "Freeze Prepayment Credit" box to determine if the return should be edited with CCC "X" .

    4. Edit CCC "W" if the received date is more than 2 years and 9 months after the return due date. Do Not send to Statute Control function.

3.11.13.35  (01-01-2009)
♦Statute Returns♦

  1. Any return (Form(s) 943, 944, 945, or CT-1) with a received date that is 2 years and 9 months or more after the Return Due Date is a potential statute control return.

    Note:

    For Form 941, any potential statute control return must have a received date which is 2 years and 9 months or more from April 15th of the following year after its normal Return Due Date. For example, all 941 returns for year 2003 must have a received date prior to April 15, 2007. (e.g. 2 years and 9 months or more from April 15, 2004).

  2. Statute returns must be routed to the Statute Control Unit daily or more often if needed.

    Exception:

    Edit a CCC "W," continue processing and do not route to the Statute Control Unit for clearance, if any of the following conditions are present:

    • Collections 6020(b) returns,

    • A return with TC 59X or ICS notated on the face of the return,

    • Returns that are substitute returns prepared by Examination (SFR in top margin) with Form 13133, Expedite Processing Request, attached or

    • A return with a "Cleared by Statute" stamp on the face of the return within the last ninety days..

  3. Statute returns are unprocessable until they are cleared by Statute Control.

    IF THEN
    The return is numbered, Step 1 - Edit Action Code 310 on the return.
    Step 2 - Leave the return in the batch and continue processing
    The return is unnumbered, Step 1 - Do not continue processing.
    Step 2 - Pull the return from the batch.
    Step 3 - Attach Form 4227 and check the Statute Control Box.

  4. Edit CCC "W" if the return has been cleared by Statute Control Unit. Statute will stamp or indicate clearance on the front of the return.

3.11.13.36  (01-01-2009)
♦Prompt, Quick, or Jeopardy Assessments♦

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

    • Form 2644, Recommendation for Jeopardy or Termination Assessment,

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

    • Form 895, Notice of Statute Expiration,

    • Form 3198, Special Handling Notice, or

    • Form 5403, Appellate Closing Record.

  2. Code, edit and manually math verify these returns (or route to the proper function for this action).

    1. A 100% review is required.

    2. If a math error is found, flag the return with a note labeled Math Error.

    3. If these returns are returned to the Accounting Branch, an adjustment will be requested.

    4. For more details, see instructions in IRM 3.11.25, Miscellaneous Tax Returns.

  3. If the Form 2859 is attached to the return and there is a TC 59X with no received date, edit the received date on the return from the Date of Request box on the Form 2859.

3.11.13.37  (01-01-2009)
Conditions for Rejection of Non-ADP Documents (BMF)

  1. Any document issued or prior to the specified tax period below is not available for ADP conversion. They are:

    • Form 941E beginning after January 1, 1994,

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

    • Form 943 prior to December 1961, or

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

    • Quarterly returns prior to March 31, 1962.

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

3.11.13.38  (01-01-2009)
Rejection Action Procedures

  1. Prepare Form 4227 to indicate the reason for rejection in the "Remarks" section. Attach the form to the face of the document in a position that will leave the entity data, condition codes, and remittance amount, if any, visible for transcription.

    IF THEN
    The document has not been numbered, Take it out of the block. Forward to Receipt and Control function.
    The document has been numbered, Enter an AC 620 in the applicable area of the document. Leave document in the block. for additional details.

3.11.13.39  (01-01-2009)
Disaster Recovery

  1. Employment tax returns are generally not given an automatic extension to file due to a disaster or emergency. Each return is decided individually, based on the taxpayer's attached statement giving a reasonable explanation for the delinquency.

    Note:

    SEE IRM 3.0.273, "THE ADMINISTRATIVE REFERENCE GUIDE" FOR FURTHER INSTRUCTIONS ON DISASTER RECOVERY.

3.11.13.40  (01-01-2009)
♦Taxpayer Advocate - Service Level Agreements (SLA)♦

  1. The National Taxpayer Advocate and the Commissioner, W&I Business Unit have reached an agreement outlining the procedures and responsibilities for processing Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete a case transaction rests with the W&I Business Unit.

  2. In preparation for a case being referred to an W&I Business Unit function, the TAS employee is responsible for:

    1. Prepare Form 12142, Operations Assistance Request,

    2. Secure all necessary supporting documentation,

    3. Forwarding the Form 12412 and documentation on Form 3210, Document Transmittal, to the W&I Business Unit Liaison.

  3. W&I is responsible for:

    1. Assigning a liaison in each office or Campus where a Taxpayer Advocate is located.

    2. Acknowledging receipt of the case via Form 3210 within one (1) workday for cases requiring expedited processing or within three (3) workdays for all other cases.

    3. Responding to TAS within three (3) workdays in writing, via facsimile or hand delivery of resolution.

    4. Providing TAS with the name and telephone number of the W&I group manager or employee assigned the case.

    5. Determining a reasonable time frame for case resolution.

    6. Upon closing of the OAR, the W&I employee assigned the OAR will complete Section VI of Form 12412, Operations Assistance Request and return it to the TAS employee assigned to the case. The Form 12412 must be returned within three (3) workdays from the date the actions have been completed and transactions input.

  4. For further information, refer to IRM 13.1.19. for Operations Assistance Request (OAR) Process and Service Level Agreement (SLA).

Exhibit 3.11.13-1  (01-01-2009)
Road Map - Form 941 Revision 2009

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Exhibit 3.11.13-2  (01-01-2009)
Road Map - Form 941-PR Revision 2009

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Exhibit 3.11.13-3  (01-01-2009)
Road Map - Form 941-SS Revision 2009

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Exhibit 3.11.13-4  (01-01-2009)
Road Map - Form 941 Revision 2008

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Exhibit 3.11.13-5  (01-01-2009)
Road Map - Form 941 Revision 2004 Conversion

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Exhibit 3.11.13-6  (01-01-2009)
Road Map - Form 941 TeleFile (Revision 1-2003) Conversion

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Exhibit 3.11.13-7  (01-01-2009)
Road Map - Form 941 TeleFile (Revision 1-2005) Conversion

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Exhibit 3.11.13-8  (01-01-2009)
Road Map - Form 943

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Exhibit 3.11.13-9  (01-01-2009)
Road Map - Form 943-PR

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Exhibit 3.11.13-10  (01-01-2009)
Road Map - Form 944

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Exhibit 3.11.13-11  (01-01-2009)
Road Map - Form 944-PR

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Exhibit 3.11.13-12  (01-01-2009)
Road Map - Form 944(SP)

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Exhibit 3.11.13-13  (01-01-2009)
Road Map - Form 944-SS

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Exhibit 3.11.13-14  (01-01-2009)
Road Map - Form 945

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Exhibit 3.11.13-15  (01-01-2009)
Road Map - Form CT-1

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Exhibit 3.11.13-16  (01-01-2009)
State Codes and ZIP Code Perfection Chart

STATE CODE/ZIP CODE PERFECTION CHART (STATE ORDER)
2-LTR CODE STATE NAME ZIP CODE   2-LTR CODE STATE NAME ZIP CODE
AA America-Atlantic 34001   MS Mississippi 38601
AE America-Europe 09001 MO Missouri 63001
AP America-Pacific 96201 MT Montana 59001
AL Alabama 35001 NE Nebraska 68001
AK Alaska 99501 NV Nevada 88901
AZ Arizona 85001 NH New Hampshire 03001
AR Arkansas 71601 NJ New Jersey 07001
CA California 90001 NM New Mexico 87001
CO Colorado 80001 NY New York 00501
CT Connecticut 06001 NC North Carolina 27001
DC District of Columbia 20001 ND North Dakota 58001
DE Delaware 19701 OH Ohio 46001
FL Florida 32001 OK Oklahoma 73001
GA Georgia 30001 OR Oregon 97001
HI Hawaii 96701 PA Pennsylvania 15001
ID Idaho 83201 RI Rhode Island 02801
IL Illinois 60001 SC South Carolina 29001
IN Indiana 46001 SD South Dakota 57001
IA Iowa 50001 TN Tennessee 37001
KS Kansas 66001 TX Texas 75001
KY Kentucky 40001 UT Utah 84001
LA Louisiana 70001 VT Vermont 05001
ME Maine 03901 VA Virginia 20101
MD Maryland 20601 WA Washington 98001
MA Massachusetts 01001 WV West Virginia 24701
MI Michigan 48001 WI Wisconsin 53001
MN Minnesota 55001 WY Wyoming 82001

Exhibit 3.11.13-17  (01-01-2009)
State Deposit Code Chart

State Abbreviation Name of State State Abbreviation Name of State
AL Alabama NE Nebraska
AK Alaska NV Nevada
AZ Arizona NH New Hampshire
AR Arkansas NJ New Jersey
CA California NM New Mexico
CO Colorado NY New York
CT Connecticut NC North Carolina
DE Delaware ND North Dakota
FL Florida OH Ohio
GA Georgia OK Oklahoma
HI Hawaii OR Oregon
ID Idaho PA Pennsylvania
IL Illinois RI Rhode Island
IN Indiana SC South Carolina
IA Iowa SD South Dakota
KS Kansas TN Tennessee
KY Kentucky TX Texas
LA Louisiana UT Utah
ME Maine VT Vermont
MD Maryland VA Virginia
MA Massachusetts WA Washington
MI Michigan WV West Virginia
MN Minnesota WI Wisconsin
MS Mississippi WY Wyoming
MO Missouri DC District of Columbia
MT Montana MU Multiple States

Exhibit 3.11.13-18  (01-01-2009)
Tax Rate/Factor Table

SOCIAL SECURITY/MEDICARE TAX RATES AND FACTORS
YEAR TAXABLE SOCIAL SECURITY WAGES AND TIPS TAXABLE MEDICARE WAGES AND TIPS TIPS DEEMED WAGES
Social Security Tax Rate Factor Medicare Tax Rate Factor Social Security Tax Rate Factor
1984 13.7% 7.2923 2.6% 38.4615 .0700 14.2857
1985 14.1% 7.0922 2.7% 37.0370 .0705 14.1844
1986 14.3% 6.9930 2.9% 34.4828 .0715 13.9860
1987 14.3% 6.9930 2.9% 34.4828 .0715 13.9860
1988 15.02% 6.6578 2.9% 34.4828  
1989 15.02% 6.6578 2.9% 34.4828
1990 15.3% 6.5359 2.9% 34.4828
1991–2007 12.4% 8.0645 2.9% 34.4828

Exhibit 3.11.13-19  (01-01-2009)
Action Codes Chart

CE = Code & Edit   S = Suspense
EC = Error Correction   GEN = Computer Generated
ACTION CODE DESCRIPTION WORKDAY SUSPENSE PERIOD FUNCTION USED IN
001 Input Document 0 GEN
Correspondence
210 EPMF Correspondence 60 EC, S
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, S
215 International Correspondence (ACI) 45 CE, EC, S
225 Taxpayer Correspondence (Signature Only) 40 CE, EC, S
226 Taxpayer Correspondence (ACI) (Signature Only) 40 CE, EC, S
In-House Research
300 Examination (Fuel tax Credit) 10 CE, EC, S
310 Statute Control 10 CE, EC, S
320 Entity Control   CE, EC, S
Criminal Investigation Division
331 Frivolous Review 3 CE, EC
332 QRDT Review 3 CE, EC
333 Prompt Audit 10 CE, EC, S
334 Joint Committee 10 CE, EC, S
335 Frivolous Case 10 CE, EC, S
336 QRDT Case 10 CE, EC, S
337 Other CID 10 CE, EC, S
Accounting
341 Manual Refund 10 CE, EC, S
342 Credit Verification 10 CE, EC, S
343 Other Accounting 10 CE, EC, S
344 Manual Refund - ERS 0 EC
MFTRA Research
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 MFTRA Research 5 CE, EC, S
360 Other In-House Research 10 CE, EC, S
370 Examination 10 CE, EC, S
Management Suspense
410 Assistance Needed 0 EC
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
470 Complex Error Codes 0 EC
480 Early Filed Suspense 150 CE, EC, S
490 System Problem 5 CE, EC, S
Missing Document
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
Magnetic Tape
550 Magnetic Tape Return - Check for Attachments 0 CE
551 Magnetic Tape - Inconsistent Data 0 CE
Rejects
610 Renumber - Non-Remit 0 CE, EC
611 Renumber - Remit 0 CE, EC
620 NMF/ Non-ADP 0 CE, EC, S
630 Re-Input 0 EC, S
640 Void 0 CE, EC, S
650 International (ACI) 0 CE, EC, S
660 Data Control Delete (TEP Delete) 0 S
670 Rejected Missing Document 0 S
Duplicate DLN
700 Duplicate Block DLN 0 GEN
711 Duplicate Document DLN from Code & Edit 0 GEN
712 Duplicate Document DLN from Error Correction 0 GEN
713 Duplicate Document DLN Unpostables 0 GEN
714 Duplicate Document DLN from Unworkable Suspense 0 GEN
715 Duplicate Document DLN from Workable Suspense 0 GEN
800 NAP Linkage Problem 2 EC, S
900 Unpostable Record 0 GEN

Exhibit 3.11.13-20  (01-01-2009)
Document Locator Number

DOCUMENT LOCATOR NUMBER
79 1 41 000 000 00 6
File Location Tax Class Document Code Numeric Day of the Year Julian Date Block Number Sequence Number Year Digit
Document Code
Identifies the specific type of return or document within a tax class. For example:
Tax Class Document Code Document
1 41 Form 941
1 43 Form 943
1 49 Form 944
1 44 Form 945
1 11 Form CT-1
1. Service Center Code digits are used on returns processed after January 1, 1981.
2. District Office Code digits were used on re-input returns and processed before January 1, 1981.

Exhibit 3.11.13-21  (01-01-2009)
Potential Frivolous Returns

Potential Frivolous Return for Examination Review (per IRM 4.10.12)
Alleged Churches/ First Amendment Income from non-religious sources and may claim a vow of poverty.
Altered Form Altering any or all line items with the intent of facilitating non-compliance with the tax laws.
Altered Jurat/ UCC 1-207 Return contains income and deductions but the jurat has been altered on stricken. May include reference of UCC 1-207 or a statement that the return was not signed under penalty of perjury.
Amended Returns/ Form 843 Claim Amended return or a Form 843 filed to obtain a total refund of all taxes paid in prior years, based on a tax avoidance argument.
Challenge to Authority/ Due process Questions various administrative authorities such as delegation orders, summons authority, privacy acts, etc. Argues that they must be afforded a hearing or a trial before taxes can be assessed or before property can be seized.
Challenge 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.
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 tax-paying public into a "new world order" .
Obscene, Vulgar, Harassing Submits documents or other materials indicating that non-filing os due to dissatisfaction with tax policies of 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.
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 is Zero Returns below.
Unsigned Return 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 of 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 not section of the Internal Revenue Code that established an income tax liability. The statement may also contain arguments regarding the definition of income.

Note:

Returns having only zeros, no entries, are blank, or indicates "None" , "Not Liable" , etc. with no evidence of frivolous arguments are not to be considered as frivolous returns.

Other All others. This category includes non-filers accounts resulting from initial compliance check such as cross-reference TINs.

Note:

Frivolous arguments citing "Collection Due Process" (CDP) should be reviewed by collections for possible referral to Appeals. Refer to IRM 5.19.8, Collection Appeal Rights Procedures, for additional information.

Exhibit 3.11.13-22  (01-01-2009)
U.S. Possessions ZIP Codes

City ZIP Code City ZIP Code
American Samoa (AS) Federated States of Micronesia (FM)
Faga'itua 96799 Chuuk 96942
Leone 96799 Kosrae 96944
Olosega Manua' 96799 Pohnpei 96941
Pago Pago 96799 Yap 96943
Marshall Islands (MH) Palau (PW)
Ebeye 96970 Koror 96940
Majuro 96960 Palau 96940
Northern Mariana Islands (MP) U.S. Virgin Islands (VI)
Capitol Hill 96950 Charlotte Amalie 00802
Rota 96951 Christiansted 00820
Saipan 96950 Cruz Bay 00830
Tinian 96952 Downtown 00840
Guam (GU) Frederiksted 00840
Agana 96910 Kingshill 00850
Inarajan 96917 Saint Croix 00820
Merizo 96916 Saint John 00830
Tamuning 96931 Saint Thomas 00805
Umatac 96915 Sunny Isle 00850
Yona 96915 Veterans Annex 00820
Puerto Rico (PR)
Adjuntas 00601 Laplata 00786
Aquada 00602 Lares 00669
Aquadilla 00603 Las Marias 00670
Agnes Buenas 00703 Las Piedras 00771
Aguirre 00704 Levittown 00949
Aibonito 00705 Loiza 00772
Anasco 00610 Loiza Street Station 00936
Angeles 00611 Loquillo 00773
Arecibo 00612 Manati 00674
Arroyo 00714 Maricao 00606
Bajadero 00616 Maunabo 00707
Barceloneta 00617 Mayaquez 00680
Barraquitas 00794 Mercedita 00715
Barrio Obrero Station 00935 Minillas Center 00936
Bayamon 00956 Moca 00676
Boqueron 00622 Morovis 00687
Cabo Rojo 00623 Naguabo 00718
Caguas 00725 Narajito 00719
Camuy 00627 Orocovis 00720
Canovanas 00729 Palmer 00721
Caparra Heights 00920 Patillas 00723
Carolina 00982 Penuelas 00624
Catano 00962 Ponce 00731
Cayey 00736 Puerta de Tierra 00936
Ceiba 00735 Puerta Real 00740
Cerro Gordon 00754 Punta Santiago 00741
Ciales 00638 Quebradillas 00678
Cidra 00739 Ramey 00603
Coamo 00769 Rincon 00677
Comerio 00782 Rio Blanco 00744
Condado 00907 Rio Grande 00721
Corozal 00783 Rio Piedras 00927
Coto Laurel 00780 Rosario 00636
Culebra 00775 Sabana Grande 00637
Dorado 00646 Sabana Hoyos 00688
Ensenada 00647 Sabana Seca 00952
Esperanza 00765 Saint Just 00978
Fajardo 00738 Salinas 00751
Fernandez Juncos 00936 San Antonio 00690
Florida 00650 San Francisco 00927
Fort Buchanan 00934 San German 00683
Garrachales 00652 San Juan 00936
Guanica 00653 San Lorenzo 00754
Guayama 00784 San Sebastian 00685
Guayanilla 00656 Santa Isabel 00757
Guaynabo 00965 Sanrurce 00936
Gurabo 00778 Toa Alta 00953
Hatillo 00659 Toa Boa 00949
Hato Rey 00936 Trujillo Alto 00976
Harmingueros 00660 University 00936
Humacao 00791 Utuado 00641
Isabela 00662 Vega Alta 00692
Jayuya 00664 Vega Baja (box 1-9049) 00694
Juana Diaz 00795 Vieques 00765
Juncos 00777 Villalba 00766
La Cumbre 00926 Yabucoa 00767
Lajas 00667 Yauco 00698

Exhibit 3.11.13-23  (01-01-2009)
Foreign Country Codes

Foreign Country Country Code
Abu Dubai AE
Afghanistan AF
Akrotiri Sovereign Base Area AX
Aland Island XI
Albania AL
Algeria AG
Andorra AN
Angola AO
Anguilla AV
Antarctic Lands FS
Antarctica AY
Antigua AC
Antigua & Barbuda AC
Argentina AR
Armenia AM
Aruba AA
Ashmore & Cartier Islands AT
Australia AS
Austria AU
Azerbaijan AJ
Azores XZ
Bahamas BF
Bahrain BA
Baker Island FQ
Balearic Islands SP
Bangladesh BG
Barbados BB
Barbuda AC
Bassas da India BS
Belarus BO
Belgium BE
Belize BH
Benin BN
Bermuda BD
Bhutan BT
Bolivia BL
Bonaire NT
Bosnia & Herzegovina BK
Botswana BC
Bouvet Island BV
Brazil BR
British Indian Ocean Territory IO
British Virgin Islands VI
Brunei BX
Bulgaria BU
Burkina Faso UV
Burma BM
Burundi BY
Caicos Islands TK
Cambodia CB
Cameroon CM
Canada CA
Canary Islands XY
Cape Verde CV
Cartier Island AT
Cayman Islands CJ
Central Africa Republic CT
Chad CD
Channel Islands XC
Chile CI
China CH
Christmas Island KT
Clipperton Islands IP
Cocos (Keeling) Island CK
Columbia CO
Comoros CN
Congo, Republic of (Brazzaville) CF
Congo, Democratic Republic of (Kinshasa) CG
Cook Islands CW
Coral Sea Islands CR
Corsica FR
Costa Rica CS
Cote d'Ivoire (Ivory Coast) IV
Croatia HR
Cuba CU
Cyprus CY
Czech Republic EZ
Dem. People's Rep. of Korea (North) KN
Dem. Rep. of Congo (Kinshasa) CG
Dem. Rep. of Timor-Leste TT
Denmark DA
Dhekelia DX
Djibouti DJ
Dominica DO
Dominican Republic DR
Dubai AE
East Timor TT
Ecuador EC
Egypt EG
El Salvador ES
Eleuthera Island BF
England XE
Equatorial Guinea EK
Eritrea ER
Estonia EN
Ethiopia ET
Europa Island EU
Falkland Islands (Islas Malvinas) FK
Faroe Islands FO
Fiji FJ
Finland FI
France FR
French Guiana FG
French Polynesia FP
French Southern & Antarctic Lands FS
Futuna WF
Gabon GB
Gambia GA
Gaza Strip GZ
Georgia GG
Germany GM
Ghana GH
Gibraltar GI
Glorioso Islands GO
Great Britain UK
Greece GR
Greenland GL
Grenada GJ
Grenadines VC
Guadeloupe GP
Guam GO
Guatemala GT
Guernsey GK
Guinea GV
Guinea-Bissau PU
Guyana GY
Haiti HA
Heard Island & McDonald Island HM
Holy See VT
Honduras HO
Hong Kong HK
Howland Island HQ
Hungary HU
Iceland IC
India IN
Indonesia ID
Iran IR
Iraq IZ
Ireland EI
Isle of Man IM
Israel IS
Italy IT
Jamaica JM
Jan Mayen JN
Japan JA
Jarvis Island DQ
Jersey JE
Johnston Atoll JQ
Jordan JO
Juan de Nova Island JU
Kazakhstan KZ
Kenya KE
Kingman Reef KQ
Kiribati KR
Korea (North) KN
Korea (South) KS
Kosovo, Republic of KV
Kurile Islands RS
Kuwait KU
Kyrgyzstan KG
Laos LA
Latvia LG
Lebanon LE
Lesotho LT
Liberia LI
Libya LY
Liechtenstein LS
Lithuania LH
Luxembourg LU
Macau MC
Macedonia MK
Madagascar MA
Malawi MI
Malaysia MY
Maldives MV
Mali ML
Malta MT
Martinique MB
Mauritania MR
Mauritus MP
Mayotte MF
McDonald Island HM
Mexico MX
Midway Islands MQ
Miquelon SB
Moldova MD
Monaco MN
Mongolia MG
Montenegro MJ
Montserrat MH
Morocco MO
Mozambique MZ
Myanmar XM
Namibia WA
Nauru NR
Navassa Island BQ
Nepal NP
Netherlands NL
Netherlands Antilles NT
New Caledonia NC
New Zealand NZ
Nicaragua NU
Niger NG
Nigeria NI
Niue NE
Norfolk Island NF
North Korea KN
Northern Ireland XN
Norway NO
Oman MU
Other (country not identified elsewhere) XX
Pakistan PK
Palau PS
Palmyra Atoll LQ
Panama PM
Papua New Guinea PP
Paracel Islands PF
Paraguay PA
Peru PE
Philippines RP
Pitcairn Islands PC
Poland PL
Portugal PO
Principe TP
Qatar QA
Redonda VI
Republic of Korea (South) KS
Republic of Singapore SN
Reunion RE
Romania RO
Russia RS
Rwanda RW
Ryukyu Islands JA
Samoa WS
San Marino SM
Sao Tome and Principe TP
Sarawak MY
Saudi Arabia SA
Scotland XS
Senegal SG
Serbia RB
Seychelles SE
Sierra Leone SL
Singapore SN
Slovak Republic XR
Slovakia LO
Slovenia SI
Solomon Islands BP
Somalia SO
South Africa SF
South Georgia Island & South Sandwich Island SX
Spain SP
Spratly Islands PG
Sri Lanka CE
St. Helena SH
St. Kitts & Nevis SC
St. Lucia ST
St. Miquelon SB
St. Pierre & Miquelon SB
St. Vincent & Grenadines VC
Sudan SU
Suriname NS
Svalbard SV
Swaziland WZ
Sweden SW
Switzerland SZ
Syria SY
Taiwan TW
Tajikistan TI
Tanzania TZ
Thailand TH
Timor-Leste TT
Togo TO
Tokelau TL
Tonga TN
Trinidad and Tobago TD
Tristan Da Cunha XT
Tromelin Island TE
Tunisia TS
Turkey TU
Turkmenistan TX
Turks & Caicos Islands TK
Tuvalu TV
Uganda UG
Ukraine UP
United Arab Emirates TC
United Kingdom UK
Uruguay UY
Uzbekistan UZ
Vanuatu NH
Vatican City VT
Venezuela VE
Vietnam VM
Virgin Islands, British VI
Wake Island WQ
Wales XW
Wallis and Futuna WF
West Bank WE
Western Sahara WI
Western Samoa WS
Windward Island VC
Yemen YM
Yugoslavia YI
Zaire CG
Zambia ZA
Zimbabwe ZI

Exhibit 3.11.13-24  (01-01-2009)
Province, State and Territory Abbreviations

Australia State Abbreviation
Australian Capital Territory ACT
New South Wales NSW
Northern Territory NT
Queensland QLD
South Australia SA
Tasmania TAS
Victoria VIC
Western Australia WA
Brazil State Abbreviation
Acre AC
Alagoas AL
Amapa AP
Amazonas AM
Bahia BA
Ceara CE
Distrito Federal DF
Esperito Santo ES
Goias GO
Maranhao MA
Mato Grosso MT
Mato Grosso do Sul MS
Minas Gerais MG
Parana PR
Paraiba PB
Para PA
Pernambuco PE
Piaui PI
Rio Grande do Norte RN
Rio Grande do Sul RS
Rio de Janeiro RJ
Rondonia RO
Roraima RR
Santa Catarina SC
Sergipe SE
Sao Paulo SP
Tocantins TO
Canada Province/Territory Abbreviation
Alberta AB
British Columbia BC
Manitoba MB
New Brunswick NB
Newfoundland and Labrador NL
Northwest Territories NT
Nova Scotia NS
Nunavut NU
Ontario ON
Prince Edward Island PE
Quebec QC
Saskatchewan SK
Yukon YT
Cuba Provincias Abbreviation
Camaguey CG
Ciego de Avila CA
Cienfuegos CF
Ciudad di La Habana CH
Gramma (Bayamo) GR
Guantanamo GT
Holguin HO
La Habana HA
Matazas MT
Municipio Especial Isla de la Juventud IJ
Pinar del Rio PR
Sancti Spiritus SS
Santiago de Cuba SC
(Victoria de) Las Tunas LT
Villa Clara VC
Italy Provincia Abbreviation
Agrigento AG
Alessandria AL
Ancona AN
Aosta/Aoste AO
Arezzo AR
Ascoli Piceno AP
Asti AT
Bari BA
Belluna BL
Beneveto BN
Bergamo BG
Biella BI
Bologna BO
BolozanoBolzen BZ
Brescia BS
Brindisi BR
Cagliari CA
Caltanisetta CL
Campobasso CB
Caserta CE
Catania CT
Catanzaro CZ
Chieti CH
Como CO
Cosenza CS
Cremona CZ
Crotone KR
Cuneo CN
Enna EN
Ferrara FE
Firenze FI
Foggia FG
Forli FO
Frosinone FR
Genova GE
Gorizia GO
Grosseto GR
Imperia IM
Isernia IS
L'Aquila AQ
La Spezia SP
Latina LT
Lecce LE
Livorno LI
Lodi LO
Lucca LU
Macerata MC
Mantova MN
Massa-Carrara MS
Matera MT
Messina ME
Milano MI
Modena MO
Napoli NA
Novara NO
Nuoro NU
Oristano OR
Padova PD
Palermo PA
Parma PR
Pavia PV
Perugia PG
Pesaro-Urbino PS
Pescara PE
Piacenza PC
Pisa PI
Pistoia PT
Pordenone PN
Potenza PZ
Prato PO
Ragusa RG
Pavenna RA
Peggio de Calabria RC
Reggio nell'Emilia RE
Rieti RI
Rimini RN
Roma RM
Rovigo RO
Salerno SA
Sassari SS
Savona SV
Siena SI
Siracusa SR
Sondrio SO
Taranto TA
Teramo TE
Terni TR
Torino TO
Trapani TO
Trento TN
Treviso TV
Trieste TS
Udine UD
Varese VA
Venezia VE
Verbania VB
Vercelli VC
Verona VR
Vibo Valentia VV
Vincenza VI
Viterbo VT
Mexico State Abbreviation
Aguascalientes AGS
Baja California Norte BCN
Baja California Sur BCS
Campeche CAM
Chiapas CHIS
Chihuahua CHIH
Coahuila COAH
Colima COL
Distrito Federal DF
Durango DGO
Guanajuato GTO
Guerrero GRO
Hidalgo HGO
Jalisco JAL
Mexico MEX
Michoacan MICH
Morelos MOR
Nayarit NAY
Nuevo Leon NL
Oaxaca OAX
Puebla PUE
Queretaro QRO
Quintana ROO QROO
San Luis Potosi SLP
Sinaloa SIN
Sonora SON
Tabasco TAB
Tamaulipas TAMPS
Tlaxcala TLAX
Veracruz VER
Yucatan YUC
Zacatecas ZAC
The Netherlands Province Abbreviation
Drenthe DR
Flevoland FLD
Friesland FR
Gelderland GLD
Groningen GN
Lemburg LB
North Brabant NB
North Holland NH
Overijssel OV
South Holland ZH
Utrecht UT
Zeeland SLD

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