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Part 3. Submission Processing

Chapter 11. Returns and Documents Analysis

Section 14. Income Tax Returns for Estates and Trusts (Forms 1041, 1041-QFT, and 1041-N) (Cont. 3)

3.11.14  Income Tax Returns for Estates and Trusts (Forms 1041, 1041-QFT, and 1041-N) (Cont. 3)

3.11.14.36 
Schedule H (Form 1040) – Household Employment Taxes

3.11.14.36.2 
Schedule H – Specific Editing Instructions

3.11.14.36.2.2  (01-01-2009)
Line 2 – Social Security Taxes

  1. Line 2 is not transcribed and does not require perfection.

3.11.14.36.2.3  (01-01-2009)
Line 3 – Total Medicare Wages

  1. Taxpayers are instructed to enter the Total Cash Wages Subject to Medicare Taxes on Line 3 of Schedule H.

    1. Delete the Line 3 amount if it contains an entry for less than the minimum reportable amount. ( See Figure 3.11.14-61. )

    2. Determine the Line 3 amounts as follows:

      Tax Year Delete Line 3 When it is...
      2008 $1,599.99 or less
      2007 and 2006 $1,499.00 or less
      2005, 2004, and 2003 $1,399.99 or less.
      2002 and 2001 $1,299.99 or less.
      2000 $1,199.99 or less.
      1999 and 1998 $1,099.99 or less.

    Figure 3.11.14-61
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Delete Lines 1 or 3 if Less than the Minimum Reportable Amount

3.11.14.36.2.4  (01-01-2009)
Line 4 – Medicare Taxes

  1. Line 4 is not transcribed and does not require perfection.

3.11.14.36.2.5  (01-01-2009)
Line 5 – Federal Income Tax Withheld

  1. Taxpayers are instructed to enter the Federal Income Tax Withheld (if applicable) on Line 5 of Schedule H.

3.11.14.36.2.6  (01-01-2009)
Line 6 – Tentative Social Security, Medicare and Withholding Taxes

  1. Taxpayers must determine the Line 6 amount by adding Lines 2, 4, and 5.

    1. If Line 6 is blank, add Lines 2, 4, and 5 (if present) and edit the total to Line 6.

3.11.14.36.2.7  (01-01-2009)
Line 7 – Advance Earned Income Credit (EIC)

  1. Taxpayers are instructed to enter the Advance Earned Income Credit Payments (if applicable) on Line 7 of Schedule H.

3.11.14.36.2.8  (01-01-2009)
Line 8 – Total Social Security, Medicare and Withholding Taxes

  1. Taxpayers must determine the Line 8 amount by subtracting Line 7 from Line 6.

    1. If Line 8 is blank, determine the entry by subtracting Line 7 from Line 6 and edit the total on Line 8.

3.11.14.36.2.9  (01-01-2009)
Lines 10 Through 12 – FUTA Yes/No Indicator

  1. The FUTA Yes/No Indicator is edited below the "Yes/No" boxes in Part II of Schedule H (Page 2).

  2. Code this field based upon the taxpayer's answers to Questions 10, 11, and 12, in Part II.

    Exception:

    Do not edit the FUTA Yes/No Indicator if Part II has no entries present in Lines 15, 16, or 17.

  3. Determine the FUTA Yes/No Indicator using the following guidelines:

    If ... Then ...
    All of Questions 10, 11, and 12 are answered "Yes" Take no action. ( See Figure 3.11.14-62. )
    Any of Questions 10, 11, or 12 are answered "No" Edit a "1" below the "Yes/No" box for Question 12. ( See Figure 3.11.14-62. )

    Figure 3.11.14-62

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

    FUTA Yes/No Indicator

  4. If the conditions in (3), above, are not met, determine from the information provided in Sections A and B in Part II of Schedule H.

    If ... Then ...
    Entries are present in Section A only. Take no action.
    Entries are present in Section B only. Edit a "1" below the "Yes/No" box for Question 12.
    Entries are present in both Section A and Section B. Delete the entries in Section A (Lines 13 through 17).
    2. Edit a "1" below the "Yes/No" box for Question 12. ( See Figure 3.11.14-63. )
    Entries are not present in either Section A or Section B. Take no action.

    Figure 3.11.14-63

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

    Entries in Both Sections A & B = Delete Section A and Edit "1" Below Question 12

3.11.14.36.2.10  (01-01-2009)
Line 13 – State Code

  1. Taxpayers must enter the two-character State Code for the state to which they paid unemployment contributions on Line 13 or 18a of Schedule H.

  2. A valid State Code must be present if there are monetary entries In Section A.

    1. For a complete listing of valid State Codes, See Figure 3.11.14-64.

    Figure 3.11.14-64

    State Code State   State Code 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
    DC District of Columbia   ND North Dakota
    DE Delaware   OH Ohio
    FL Florida   OK Oklahoma
    GA Georgia   OR Oregon
    HI Hawaii   PA Pennsylvania
    ID Idaho   PR Puerto Rico
    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   VI U.S. Virgin Islands
    MI Michigan   WA Washington
    MN Minnesota   WV West Virginia
    MS Mississippi   WI Wisconsin
    MO Missouri   WY Wyoming
    MT Montana      

    State Codes

  3. Valid State Codes include the fifty states plus the District of Columbia, the U.S. Virgin Islands and Puerto Rico.

    1. Process the information on Line 13 of Schedule H as follows:

    If ... Then ...
    The State Code is present. Underline the State Code on Line 13.
    The State Name is spelled out (not abbreviated as a State Code). Edit the appropriate State Code. ( See Figure 3.11.14-64. )
    More than one State Code (or State Name) is present. "X" out all the State Codes and continue editing the return.
    There are no State Codes (or State Names present). Edit the State Code that corresponds with the taxpayer's address listed in the Entity Section of Form 1041.

  4. For additional State Code instructions, See IRM 3.11.14.36.2.15.1.

3.11.14.36.2.11  (01-01-2009)
Line 14 – State Reporting Number

  1. Taxpayers must report the State Reporting Number of the state where unemployment contributions were paid on Line 14 of Schedule H.

    1. Process the information on Line 14 of Schedule H as follows:

    If ... Then ...
    The State Reporting Number is not present.

    1. Take no action.

    2. Continue editing the return.
    More than one State Reporting Number is present on Line 14. Delete all State Reporting Numbers on Line 14.
    Lines 13, 16, and 17 are all blank. Delete the State Reporting Number.

3.11.14.36.2.12  (01-01-2009)
Lines 15 – State Unemployment Contributions Paid

  1. Taxpayers must report the State Unemployment Contributions paid to one state on Line 15 of Schedule H.

    1. If the taxpayer has notated "0%" , "0% RATE" , or "ZERO PERCENT RATE" , etc. as the only entry for this line, delete the amount on Line 15 or 19(i), if applicable.

    Note:

    State Unemployment Contributions Paid to more than one state must be reported on Line 18(i) and totaled on Line 19(i) of Schedule H. ( See IRM 3.11.14.36.2.16. )

3.11.14.36.2.13  (01-01-2009)
Line 16 – Total FUTA Wages

  1. Taxpayers must enter the total cash wages paid to household employees on Line 16 or Line 21 of Schedule H.

3.11.14.36.2.14  (01-01-2009)
Line 17 – FUTA Tax

  1. Taxpayers must enter the Total FUTA Tax on Line 17 or Line 25 of Schedule H.

    1. If not present, continue editing the return. Do not compute.

3.11.14.36.2.15  (01-01-2009)
Line 18 – Multiple State Reporting

  1. Taxpayers are required to use Line 18 of Schedule H to report state unemployment information when they have paid unemployment contributions to more than one state.

3.11.14.36.2.15.1  (01-01-2009)
Line 18(a) – State Code

  1. Taxpayers must enter the State Code for the states to which they paid unemployment contributions on Line 18(a) of Schedule H.

  2. A valid State Code (two alpha characters) must be present if there are monetary entries in Section B of Schedule H.

    1. For a complete listing of valid State Codes, See Figure 3.11.14-64.

  3. Valid State Codes include the fifty states plus the District of Columbia, the U.S. Virgin Islands and Puerto Rico.

    1. Process the information on Line 18(a) of Schedule H as follows:

    If ... Then ...
    One or two State Codes are present. Underline the State Codes. ( See Figure 3.11.14-65. )
    More than two State Codes are present or taxpayer notates "SEE ATTACHED" . ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    The State Name is spelled out (not abbreviated as a State Code).

    1. Delete the State Name.

    2. Edit the appropriate two character State Code.
    There are no State Codes (or State Names present). Edit the State Code that corresponds with the taxpayer's address listed in the Entity section of Form 1041.
    There is a State Code and State Reporting Number in Row 1 and a State Reporting Number but no State Code in Row 2.

    1. Edit the State Code from Row 1 to Row 2.

    2. Edit Multiple ID Code "1" in the lower right corner of Page 2 of Schedule H. ( See Figure 3.11.14-65. )

      Note:

      For instructions for identifying the Multiple ID Code, See IRM 3.11.14.36.2.20.

  4. For additional information for determining State Codes, See IRM 3.11.14.36.2.10.

    Figure 3.11.14-65

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

    Multiple ID Code

3.11.14.36.2.15.2  (01-01-2009)
Line 18(b) – State Reporting Number

  1. Taxpayers must report the State Reporting Numbers of the states to which unemployment contributions were paid on Line 18(b) of Schedule H.

    1. Process the information on Line 18(b) of Schedule H as follows:

    If ... Then ...
    The State Reporting Number is not present.

    1. Take no action.

    2. Continue editing the return.
    A State Code is listed more than once with only one State Reporting Number present for that state. Delete the duplicate State Code that does not have a corresponding State Reporting Number. ( See Figure 3.11.14-66. )
    Lines 18(a), 21, and 25 are all blank. Delete the State Reporting Number.

    Figure 3.11.14-66

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

    Delete Duplicate State Code With No State Reporting Number

3.11.14.36.2.16  (01-01-2009)
Line 19(i) – State Unemployment Contributions Paid

  1. Taxpayers must report the total State Unemployment Contributions paid to more than one state on Line 19(i) of Schedule H.

    1. "X" out Line 19 when the taxpayer has notated "0%" , "0% RATE" , or "ZERO PERCENT RATE" as the only entry on the line.

3.11.14.36.2.17  (01-01-2009)
Line 20 – FUTA Tentative Credit

  1. Line 20 is derived by adding Lines 19(h) and 19(i).

    1. Process the information on Line 20 of Schedule H as follows:

    If ... Then ...
    Line 20 is blank but an entry is present on Line 19(h) and/or 19(i). Determine Line 20 by adding Lines 19(h) and 19(i).
    Lines 20, 19(h), and 19(i) are all blank but an entry is present on Line 18(h) and/or 18(i). Determine Line 20 by adding Rows 1 and 2 of Lines 18(h) and 18(i).
    Lines 20, 19(h), and 19(i) are all blank and Line 18(h) and/or 18(i) are also blank.

    1. Take no action.

    2. Continue editing the return.

3.11.14.36.2.18  (01-01-2009)
Line 21 – Total FUTA Wages

  1. Taxpayers must enter the total cash wages paid to household employees that are reported to more than one state on Line 21 of Schedule H.

3.11.14.36.2.19  (01-01-2009)
Line 25 – FUTA Tax

  1. Line 25 is derived by subtracting Line 24 from Line 22 of Schedule H.

    1. If Line 25 is not present, continue editing the return. Do not compute.

3.11.14.36.2.20  (01-01-2009)
Multiple ID Code

  1. The Multiple ID Code is used to identify Schedule H's where the taxpayer has listed more than one State Reporting Number for any one state.

  2. The Multiple ID Code is entered in the lower right margin of Page 2 of Schedule H.

  3. The only valid Multiple ID Code is "1" .

    1. If the taxpayer lists more than one State Reporting Number for any one state, edit Multiple ID Code "1" in the bottom right margin of Page 2 of Schedule H.

      Example:

      If "KY" is listed on both Rows 1 and 2 of Line 18(a) and both rows of Line 18(b) contain different State Reporting Numbers, edit Multiple ID Code "1" . ( See Figure 3.11.14-65. )

3.11.14.36.3  (01-01-2009)
Processing Loose-Filed Schedule H's

  1. Taxpayers who are not required to file Form 1041 may still be required to file Schedule H (Form 1040). These taxpayers will file Schedule H alone.

    If ... Then ...
    Loose-filed Calendar Year Schedule H Prepare a "Dummy" Form 1041 and continue processing the "Dummy" Form 1041 and Schedule H. ( See IRM 3.11.14.36.3.1. and See IRM 3.11.14.36.3.2. )
    Loose-filed Fiscal Year Schedule H Send Schedule H back to the taxpayer. ( See IRM 3.11.14.36.3.3. )

  2. BMF (Form 1041) – Process all loose-filed Schedule H's with "TRUST" or "ESTATE" notated on the Name Line as BMF. Also process as BMF, any loose-filed Schedule H received with an EIN and a BMF Name Line (e.g., Kennedy Christian Church, Johnson's Home for the Elderly).

    If ... Then ...
    Loose-filed Schedule H is received with a payment. The Deposit function will notate "LOOSE-FILED SCHEDULE H" on the form and forward it to Code & Edit.
    Loose-filed Schedule H is received without payment. Receipt & Control will route the Schedule H directly to Code & Edit.

  3. IMF (Form 1040) – Process all loose-filed Schedule H's which have an SSN present as IMF. Also process as IMF, any loose-filed Schedule H which does not include the term "TRUST" or "ESTATE" on the Name Line.

    1. Route loose-filed IMF Schedule H's to IMF Code & Edit.

  4. Loose-filed Schedule H's received with remittance will have already been researched to determine the Tax Period Ending and to determine whether the taxpayer had a filing requirement for a Form 1041 (MFT 05) or a Form 1040 (MFT 30).

    • Calendar Year Schedule H With Remittance – Identified by the notation "LOOSE BMF SCHEDULE H" or "LOOSE BMF SCHEDULE H, 200X12" on Schedule H.

    • Fiscal Year Schedule H With Remittance – Identified by the same notation as calendar year filers, except the Tax Period Ending will be other than blank or "12" .

      Example:

      The notation might read "LOOSE BMF SCHEDULE H, 200X06" .

    • Calendar or Fiscal Year Schedule H With No Remittance – Schedule will not contain any notation.

3.11.14.36.3.1  (01-01-2009)
Loose-Filed Calendar Year Schedule H (With Remittance)

  1. Loose-filed Calendar Year Schedule H's received with remittance will contain the notation "LOOSE BMF SCHEDULE H" or "LOOSE BMF SCHEDULE H, 200X12" . Determine the tax year of the loose filed Schedule H:

    If ... Then ...
    TY 2008 or Subsequent

    1. Edit Action Code 480 (Early Filed – Suspense).

    2. Attach Form 4227 and notate "EARLY FILED FORM 1041" .

    TYs 2007 through 1995

    1. Prepare a "Dummy" Form 1041 (see Item (2), below).

    2. Continue processing the "Dummy" Form 1041 and Schedule H.

    TY 1994 and Prior Send Schedule H back to the taxpayer.

  2. "Dummy" Form 1041 Procedures – When preparing a "Dummy" Form 1041, ensure that all of the following information is included:

    1. Entity Information – Complete the Entity portion of the return using information provided from the Name Line (top of Page 1) and the Signature and Address Sections (bottom of Page 2).

    2. Fiduciary Code – Code with Fiduciary Code "4" (Family Estate Trust).

    3. Trust Code – Code with Trust Code "3" (Family Estate Trust).

    4. Total Tax – Edit the Total Tax from the loose-filed Schedule H to Line 6 of Schedule G on the "dummy" Form 1041.

      If ... Then ...
      Part II was not completed. Edit the amount from Line 8 of Schedule H.
      Part II was completed. Edit the amount from Line 27 of Schedule H.

3.11.14.36.3.2  (01-01-2009)
Loose-Filed Calendar Year Schedule H (Without Remittance)

  1. Loose-filed Calendar Year Schedule H's received without remittance will not have any indication of the Tax Period Ending or the Filing Requirement notated on the document.

  2. Assume that the Schedule H has been filed for an IMF (Form 1040) account unless the taxpayer has notated "TRUST" or "ESTATE" on Schedule H. If this is notated, process as a BMF (Form 1041) return:

    1. Follow local procedures for researching the BMF to determine the Tax Period Ending and Filing Requirement:

    If ... Then ...
    Calendar Year Return

    1. Prepare a "Dummy" Form 1041.

    2. Continue processing the "Dummy" Form 1041 and Schedule H.

    Fiscal Year Return Process as instructed in See IRM 3.11.14.36.3.3.

3.11.14.36.3.3  (01-01-2009)
Loose-Filed Fiscal Year Schedule H (With or Without Remittance)

  1. Federal employment taxes for household employees must be reported on a calendar year basis on Schedule H (Form 1040) for Tax Year ending 1995 or later.

  2. Process all loose-filed Fiscal Year Schedule H's as follows:

    1. Issue a 177C letter to the taxpayer using a Form 3696-A (IDRS Correspondence Action Sheet). Enter the following in the "Fill–Ins" Section of the Form 3696-A:

      "We cannot process your Schedule H (Form 1040) as filed without a completed Form 1041 (U.S. Income Tax Return for Estates and Trusts). The information reported on Line 7 of your Form 1041, Schedule G, must be supported by the information on your Schedule H."

      "Effective TY 1995, Federal employment taxes for household employees must be reported on a calendar year basis on Schedule H (Form 1040). If you filed your Schedule H to report Household Employment Tax (HET) for a Fiscal Year ending in 2008, your Schedule H should include HET for the period January 1, 2007 through December 31, 2007. Returns filed with a Fiscal Year ending in 2007 should include HET for the period January 1, 2006 through December 31, 2006."

      "We will apply the payment you sent as an estimated payment to your Form 1041 account for the fiscal period ending in 2007. The payment will be applied under Employee Identification Number (EIN) ________. If this is not the correct EIN, please let us know."

      Note:

      Use this paragraph for Remittance returns only.

      "If the taxes were erroneously reported and you do not want your payment applied but instead want either a refund or the payment needs to be applied to another Tax Period, please write to us at the address at the top of this letter. If you prefer, you may call the IRS telephone number listed in the local directory. An employee there should be able to help you, but the office at the address shown on this letter is the most familiar with your case."

3.11.14.36.3.4  (01-01-2009)
Loose-Filed Amended Schedule H

  1. If the taxpayer has filed a Schedule H (Form 1040) with the notation "AMENDED" , "SUPPLEMENTAL" , "CORRECTION" or any other phrase signifying that the filing is for other than the original filing of the Schedule H:

    1. Edit CCC "G" (Amended Return) on the "Dummy" Form 1041.

    2. Continue processing the return.

3.11.14.37  (01-01-2009)
Form 3800 - General Business Credit

  1. Form 3800 is required when the taxpayer is claiming one of the general business credits shown on Form 3800. See Exhibit 3.11.14-5.

  2. Only oneForm 3800 should be attached to the return. When more than one Form 3800 is attached then:

    1. Combine all related information onto one Form 3800.

    2. "X" the remaining Form(s) 3800.

  3. Perfect lines 1a through 1y on Form 3800 and when blank, using the chart below.

    Form 3800, Line Number Edit the amount from the source indicated below, to the corresponding line on Form 3800.
    1a Form 3468 Line 6
    1b Form 8861 Line 6
    1c Form 6765 (Prior year)
    Credit for Increasing Research     		Line 63
    1d Form 8586, Part I Line 7
    1e Form 8826 Line 8
    1f Form 8835, Section I only Line 12
    1g Form 8845 Line 8
    1h Form 8820 Line 6
    1i Form 8874 Line 3
    1j Form 8881 Line 5
    1k Form 8882 Line 9
    1l Form 8900 (Prior Year)
    Qualified Railroad Track Maintenance Credit     		Line 7
    1m Form 8864 Line 12
    1n Form 8896 Line 10
    1o Form 8906 Line 5
    1p Form 8907 Line 15
    1q Form 8908 Line 4
    1r Form 8909 Line 21
    1s Form 8910 Line 10, part II
    1t Form 8911 Line 9, part II
    1u Form 8923 Line 4
    1v Form 8931 Line 5
    1w Form 8932 Line 6
    1x Form 8847 TBD

  4. Take the following actions for a work-around process for Lines 1v through 1x:

    1. Renumber Line 1x to be 1v

    2. Renumber Line 1y to be 1w

    3. Compute new Line 1w as follows:

    1. Add original amounts from Old Lines 1v, 1w and 1y (Form 8923, 8932 and 1065-B), plus amounts from Lines 24 and 30 (page 3).

    2. Edit computed amount to edited New Line 1w (old 1y)

  5. If there is an entry of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the required credit form is not attached then edit the assigned Missing Schedule Code (MSC). ( See IRM 3.11.14.9.5.)

    Note:

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

3.11.14.38  (01-01-2009)
Form 4136 – Credit for Federal Tax Paid on Fuels

  1. Form 4136 (Credit for Federal Tax Paid on Fuels) must be attached to Form 1041 if an entry is present on Line 24g of Form 1041.

  2. The Credit Reference Number (CRN) and money amount will be transcribed from Form 4136.

  3. No editing is required for Form 4136 for TY 2001 and subsequent.

  4. Conversion is required for TY 2000 and prior. For prior year editing instructions, See IRM 3.11.14.42.2.6.

  5. For a display of Form 4136 transcription lines, See Exhibit 3.11.14-6.

3.11.14.39  (01-01-2009)
Decedent's Form 1040, 1040A and 1040EZ

  1. This subsection provides instructions for identifying and processing Form 1040/A/EZ Decedent returns.

  2. Forms 1040, 1040A, and 1040EZ cannot be filed for a deceased taxpayer (or two deceased taxpayers on a joint return) if the return covers a Tax Period after the one in which the taxpayer(s) died.

  3. If the Form 1040, 1040A, or 1040EZ return is filed for a deceased taxpayer (or two deceased taxpayer's on a joint return) and the return covers a Tax Period after the one in which the taxpayer died, Form 1041 must be filed.

  4. When an IMF processing campus determines Form 1040, 1040A, or 1040EZ was filed in error and Form 1041 is required, IMF will forward the return to the BMF processing campus.

    Note:

    If Form 1040 was previously assigned a DLN at the IMF processing campus, the IMF site will void the DLN using Action Code 640 before shipping the return to the BMF site.

  5. The BMF processing campus will verify that Form 1040, 1040A, or 1040EZ met the criteria for Form 1041 conversion or correspondence by examining the entity area, filing status box, signature line, and attachment of Form 1040/A/EZ.

    If ... Then ...
    Taxpayer's date of death is missing

    1. Research IDRS.

    2. If the taxpayer is not deceased or the date of death occurred during or after the filing year, attach IDRS research and reason for transhipping. Route the return to the appropriate IMF site using local procedures.

    Taxpayer died during or after the filing year

    1. The return was sent to the BMF site in error.

    2. Indicate the reason for transhipping and route the return to the appropriate IMF site using local procedures.
    The filing status box "single" (Form 1040/A/EZ) is checked and the date of death is prior to the filing year, but the taxpayer signed the return

    1. Research IDRS to determine if the taxpayer that signed the return is deceased.

      Note:

      The Taxpayer may have provided their deceased spouse's date of death in error.

    2. If a second SSN (spouse's SSN) is present on IDRS, use the second SSN to research for a potential date of death.

    3. If you have determined, using IDRS that the taxpayer is not deceased, you must follow local procedures for transshipping the return to the appropriate IMF processing site. Attach your IDRS research and indicate the reason for transhipping.

    The filing status box "married filing joint" (Form 1040/A/EZ) is checked and there is a date of death prior to the tax year being filed, and neither taxpayer signed the return

    1. Research IDRS to determine If either of the taxpayers are living or if one or both are deceased, but "the date of death" for one was during the tax period or before the tax period ended.

    2. If you have determined, using IDRS, one or both are deceased but "the date of death" for one was during the tax period or before the tax period ended, you must follow local procedures for transshipping the return to the appropriate IMF processing site. Attach your IDRS research and indicate the reason for transhipping.

    Form 1040/A/EZ appears to be a business return filed on an individual return, i.e., the presence of a business name, EIN, etc. in the entity area Refer return to work Leader.
    Form 1040/A/EZ appears to be a detached bankruptcy Refer return to work Leader.

  6. If Form 1040/A/EZ meets the criteria for Form 1041 conversion or correspondence continue editing as follows:

    If ... Then ...
    Line 22 (Total income), Form 1040; Line 15 (Total income), Form 1040 A; or Line 4 (Adjusted Gross Income), Form 1040 EZ is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Convert the Form 1040 to Form 1041. ( See IRM 3.11.14.39.2.)
    Line 22 (Total income), Form 1040; Line 15 (Total income), Form 1040 A; or Line 4 (Adjusted Gross Income), Form 1040 EZ is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Correspond with the taxpayer for a completed Form 1041 using Letter 3801C
    Any unprocessable conditions exist that require correspondence with the taxpayer Do not convert to Form 1041. Correspond with the taxpayer for a completed Form 1041 and include all correspondence issues. ( See IRM 3.11.14.39.1.)

3.11.14.39.1  (01-01-2009)
Correspondence Procedures for Decedent's Form 1040/A/EZ

  1. Correspond with the taxpayer for a completed Form 1041 when the return meets the criteria for Form 1041 Decedent Conversion and one of the following conditions exist

    1. Line 22 (Total income ), Form 1040; Line 15 (Total income), Form 1040 A; or Line 4 (Adjustment Gross Income), Form 1040 EZ is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. Line 22 (Total income ), Form 1040; Line 15 (Total income), Form 1040 A; or Line 4 (Adjusted Gross Income), Form 1040 EZ is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but un-processable conditions exist.

    Caution:

    If there is evidence of previous correspondence with the taxpayer, the second correspondence must include a paragraph of apology for any inconvenience.

  2. Research the return to see if any of the following conditions exist:

    If ... Then ...
    An EIN has been assigned to Form 1040/A/EZ or a dummy Form 1041, but a return TC 150 (MFT 05) can not be found, Correspond.

    Note:

    If research reveals a Form 1041 was filed, reassociate the Form 1040 with Form 1041.
    Form 1040/A/EZ is a zero balance timely filed or refund return,

    Check:

    • Line 72, Form 1040

    • Line 44, Form 1040A

    • Line 12a, Form 1040EZ


    		 Send the return back to the taxpayer using local procedures.
    Form 1040/A/EZ is a balance due or delinquent return ,

    Check:

    • Line 75, Form 1040

    • Line 47, Form 1040A

    • Line 13, Form 1040EZ

    1. Attach a blank Form 1041 to front of the Form 1040/A/EZ and delete page 1 of Form 1040/A/EZ. See (3) below for Form 1041 correspondence requirements.

    2. Attach 3801C Letter to the Form 1041 and edit Action Code 211.

  3. All Forms 1041 prepared for correspondence must have:

    1. A Received Date. The absence of a Received Date is an indication of a timely filed return (most Forms 1040/A/EZ are due 4/15/2009). See IRM 3.11.14.39.2. , Conversion Procedures for Decedent Form 1040/A/EZ, for Received Date editing instructions.

    2. A Tax Period. If the Tax Period on Form 1040/A/EZ is other than Current Processing year, edit the Tax Period (in YYMM format) to the right of preprinted calendar year on Form 1041.

    3. A TIN. Edit the SSN from Form 1040/A/EZ to the EIN location of Form 1041.

      If ... Then ...
      The SSN is missing, illegible or incomplete and cannot be perfected from attachments Research the SSN following local procedures.

      • If found, edit to the appropriate location.

      • If not found, refer the return to your work leader.

    4. A Name Control. Edit the first four letters of the decedent’s last name as the Name Control. See Document 7071 (Name Control Job Aid) for proper determination of the Name Control.

    5. An Address. Edit the address as follows:

      If ... Then ...
      A Form 1310 or Court Certificate is attached Edit the address found in the caption area(s) to the appropriate location on Form 1041.
      No Form 1310 or Court Certificate is attached Edit the address from Form 1040/A/EZ to the appropriate location on Form 1041. See IRM 3.11.14.13.4. for general editing instructions.

    Note:

    Do not edit Form 1040/A/EZ line entries to Form 1041.

3.11.14.39.2  (01-01-2009)
Conversion Procedure for Decedent Form 1040/A/EZ

  1. Convert Form 1040/A/EZ to Form 1041 when all of the following conditions exist:

    • The return is for a single deceased taxpayer (or two deceased taxpayers) on a joint return and the return covers a tax period after the one in which the taxpayer(s) died.

    • Line 22 (Total Income) Form 1040, Line 15 (Total Income) Form 1040A, or Line 4 (Adjusted Gross Income) Form 1040EZ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • There are no unprocessable conditions present. ( See IRM 3.11.14.5.)

  2. If all of the above conditions are met, prepare the return for conversion by deleting page 1 of Form 1040/A/EZ and attaching a blank Form 1041 to the front of the return.

  3. All Forms 1040/A/EZ prepared for conversion must have a Received Date. The absence of a Received Date is an indication of a timely filed return received at an IMF campus. Received Date editing instructions for Decedent Form 1041 Conversions differ from other instructions found in the Form 1041 IRM.

    Caution:

    If a prior year 1040/A/EZ has been cleared by statutes, then after converting return to a 1041, send converted Form 1041 package to Statutes to be cleared.

  4. Convert Form 1040 to Form 1041 as follows:

    1. Edit the Received date. All Forms 1040/A/EZ prepared for conversion must have a Received Date.

      If ... Then ...
      There is no Received Date present on Form 1040/A/EZ. The return was timely filed. Edit 041509 to Form 1041 as the Received Date.
      The return was timely filed before the due date, edit per See IRM 3.11.14.10.(6).
      There is a single, timely Received Date present on Form 1040/A/EZ. Edit the Received Date from the Form 1040/A/EZ to Form 1041 as the Received Date.
      There is a single, delinquent Received Date from OSPC or CSPC present on Form 1040/A/EZ The return was timely filed. Edit 041509 to Form 1041 as the Received Date.
      There is a single Received Date from a processing campus other than OSPC or CSPC present on Form 1040/A/EZ. Edit the Received Date from the Form 1040/A/EZ to Form 1041 as the Received Date.
      There are multiple Received Dates present on Form 1040/A/EZ. Edit the earliest IMF Received Date or the earliest, timely BMF Received Date from Form 1040/A/EZ to Form 1041 as the Received Date.

      If all the Received Dates are from OSPC or CSPC and all are delinquent, the return was timely filed, edit 041509 as the Received Date to Form 1041.

    2. Edit the Tax Period (in YYMM format) to the right of the preprinted Calendar Year on Form 1041, if the Tax Period on Form 1040/A/EZ is other than the Current Processing year.

    3. Edit fiduciary code "1" (Decedent's Estate) in Box "A" . For Fiduciary code instructions, See IRM 3.11.14.12.

    4. Edit the EIN as follows:

      If ... Then ...
      An EIN is present on Form 1040/A/EZ Edit to the appropriate location on Form 1041
      An EIN is not present on Form 1040/A/EZ Route the converted Form 1041 to Entity Control for EIN assignment.

    5. Edit the first four letters of the decedent’s last name as the Name Control. See Document 7071 (Name Control Job Aid) for proper determination of the Name Control.

    6. Edit the address as follows:

      If ... Then ...
      A Form 1310 or Court Certificate is attached Edit the address found in the caption area(s) to the appropriate location on Form 1041.
      No Form 1310 or Court Certificate is attached Edit the address from Form 1040/A/EZ to the appropriate location on Form 1041. See IRM 3.11.14.13.4., for general editing instructions.

    7. Edit the date of death as the "Date Entity Created" in Section "D"

      Note:

      Edit CCC "8" if Section "D" is within two years of the tax year ending date.

    8. The procedures for Decedent Form 1041 Conversions require that the Form 1041 IRMsignature instructions be applied to Form 1040/A/EZ signature area. Therefore, the signature instructions for Decedent Form 1041 Conversions differ from the instructions found in other sections of the Form 1041 IRM. See IRM 3.11.14.5.3. for correspondence instructions.

      Check the Form 1040/A/EZ signature area to determine if all of the Form 1041 signature requirements are met. ( See IRM 3.11.14.22.)
      If ... Then ...
      Signature correspondence is required Do not convert Form 1040/A/EZ. Correspond with the taxpayer for a completed Form 1041. ( See IRM 3.11.14.5.3.)
      All signature criteria is met Edit "See Attached" or "S/A" to the signature line of Form 1041.

  5. Place the converted Form 1041 and any transcribable forms in the correct sequential order. ( See IRM 3.11.14.2.2.)

  6. Transfer specific tax data from Form 1040/A/EZ to Form 1041 using the following instructions:

    • Form 1040 - See IRM 3.11.14.39.3.

    • Form 1040A - See IRM 3.11.14.39.4.

    • Form 1040EZ - See IRM 3.11.14.39.5.

  7. Do not detach Form 1040 and its schedules from Form 1041 when the Form 1040 is received attached to Form 1041 on a correspondence reply return.

3.11.14.39.3  (01-01-2009)
Transferring Tax Data for Decedent Form 1040 to Form 1041

  1. Form 1040

    1. If there are no money amounts present on Form 1040 to convert to Form 1041, edit zeros on lines 1, 9, 23 and 25.

    2. For prior year returns, match the Form 1040 line descriptions to the same line descriptions on Form 1041.

    3. The following tables contain instructions for transferring tax data from Form 1040 to Form 1041.

    4. Income -- Edit the "Income" Section of Form 1040 to the applicable Income lines on Form 1041.

      Edit from Form 1040 Related Form Edit to Form 1041
      Line 8a (Taxable Interest)   Line 1
      Line 9a (Ordinary Dividends)   Line 2a
      Line 9b (Qualified Dividends)   Line 2b(2)
      Lines 7 (Wages), 10 (Taxable Refunds), 11 (Alimony), 15b (Taxable IRA Distributions), 16b (Taxable Pensions and Annuities), 19 (Unemployment), 20b (Taxable Social Security), and 21 (Other Income),   Line 8
      Line 12 (Business Income) Schedule C Line 3
      Line 13 (Capital Gain) Schedule D Line 4
      Line 14 (Other Gains) Form 4797 Line 7
      Line 17 (Schedule E Income) Schedule E Line 5
      Line 18 (Farm Income) Schedule F Line 6

    5. Tax and Credits -- Edit the "Tax and Credits" Section and "Other Taxes" Section of Form 1040 to the applicable lines on Schedule G (Page 2 of Form 1041):

      Edit from Form 1040 Edit to Form 1041
      Line 45 (Alternative Minimum Tax) Line 1c of Schedule G
      Line 50 (Foreign Tax Credit) Line 2a of Schedule G
      Line 54 (Other Tax and Credits) Line 2c of Schedule G

    6. Other Taxes -- Edit the "Other Taxes" Section of Form 1040 to the applicable lines on Form 1041:

      Edit from Form 1040 Edit to Form 1041
      Line 58 (Unreported Social Security and Medicare Tax on Tip Income) Line 5 of Schedule G
      Line 60b (Household Employment Taxes) Line 6 of Schedule G
      Line 61 (Total Tax) Line 23

    7. Payments -- Edit the "Payments" Section of Form 1040 to the applicable lines on Form 1041:

      Edit from Form 1040 Edit to Form 1041
      Line 62 (Federal Income Tax Withheld) Line 24e
      Line 63 (Estimated Tax Payments) Line 24a
      Line 67 (Amount Paid With Extension) Line 24d
      Line 68a (Form 2439 Payments) Line 24f
      Line 68b (Form 4136 Payments) Line 24g
      (Form 8913) prior year TY2006 only Dotted portion of Line 25

    8. Refund/Amount Owed -- Edit the "Refund/Amount Owed" Section of Form 1040 to the applicable lines on Form 1041:

      Edit from Form 1040 Edit to Form 1041
      Line 72 (Overpayment) Line 28
      Line 73a (Refund) and/or Line 74 (Applied to Estimated Tax) Line 29b/or
      Line 29a
       
      Line 75 (Tax Due) Line 27  
      Line 76 (Estimated Tax Penalty) Line 26  

      Reminder:

      If a Form 1040 includes any line amounts that cannot be associated with a line on Form 1041, refer to your manager.

  2. Schedule A (Itemized Deductions) -- Edit the Itemized Deductions reported on Schedule A of Form 1040 to the applicable Deductions lines on Form 1041 (Lines 10 through 21):

    Edit from Schedule A (Form 1040) Edit to Form 1041
    Line 9 (Total Taxes Paid) Line 11
    Line 15 (Total Interest Paid) Line 10
    Line 19 (Total Gifts to Charity) Line 13
    Lines 20 plus 28 (Casualty and Theft Losses + Other Miscellaneous Deductions) Line 15a
    Line 27 (Total Job Expenses and Certain Miscellaneous Deductions) Line 15b

  3. Schedule D (Form 1040) -- Edit the Capital Gains and Losses information reported on Schedule D (Form 1040) to Schedule D (Form 1041) as follows:

    Edit from Schedule D (Form 1040) Edit to Column (2) of Schedule D (Form 1041)
    Line 7, Column (f) (Net Short-Term Capital Gain or Loss) Line 13(2)
    Line 15, Column (f) (Net Long-Term Capital Gain or Loss) Line 14a(2)
    Line 19 (Unrecaptured Section 1250 Gain) Line 14b(2)
    Line 18 (28% Rate Gain or Loss) Line 14c(2)

  4. Form 4952 (Investment Interest Expense Deduction) -- Effective 1-1-2004, Lines 4e and 4g will be transcribed from Form 4952. If Form 4952 is received attached to Form 1040, place Form 4952 behind Schedule D (Form 1041). No editing is required. See IRM 3.11.14.35. and See IRM 3.11.14.2.2. for additional information.

  5. Schedule H (Household Employment Taxes) -- If a Schedule H is attached to Form 1040, See IRM 3.11.14.36. and See IRM 3.11.14.2.2. for editing and sequencing instructions.

  6. Form 4136 (Credit for Federal Tax Paid on Fuels) -- If a Form 4136 is attached to Form 1040, See IRM 3.11.14.38. and See IRM 3.11.14.2.2. for editing and sequencing instructions.

  7. After completing the conversion process, refer to IRM 3.11.14 for further coding and editing requirements. Review the newly converted Form 1041 for conditions that may require further action: for example; CCC codes, Audit Codes, support for newly transcribed lines, and routing attachments.

    Reminder:

    If any conditions exist that require correspondence with the taxpayer to resolve, do not convert Form 1040. Correspond with the taxpayer for a completed Form 1041.

3.11.14.39.4  (01-01-2009)
Transferring Tax Data for Decedent Form 1040A to Form 1041

  1. Form 1040A

    1. If there are no money amounts present on Form 1040A to convert to Form 1041, edit zeros on lines 1, 9, 23 and 25.

    2. For prior year returns, match the Form 1040A line descriptions to the same line descriptions on Form 1041.

    3. The following tables contain instructions for transferring tax data from Form 1040A to Form 1041.

    4. Income -- Edit the "Income" Section of Form 1040A to the applicable Income lines on Form 1041:

      Edit from Form 1040A Edit to Form 1041
      Line 8a (Taxable Interest) Line 1
      Line 9a (Ordinary Dividends) Line 2a
      Line 9b (Qualified Dividends) Line 2b(2)
      Lines 7 (Wages), 10 (Capital Gain Distributions), 11b (Taxable IRA Distributions), 12b (Taxable Pensions and Annuities), 13 (Unemployment), and 14b (Taxable Social Security Benefits) Line 8

    5. Tax, Credits, and Payments -- Edit the "Tax, Credits, and Payments" Section of Form 1040A to the applicable Income lines on Form 1041:

      Edit from Form 1040A Edit to Form 1041
      Line 37 (Total Tax) Line 23
      Line 38 (Federal Income Tax Withheld) Line 24e
      Line 39 (Estimated Tax Payments) Line 24a

    6. Refund/Balance Due -- Edit the "Refund/Balance Due" Section of Form 1040A to the applicable Income lines on Form 1041:

      Edit from Form 1040A Edit to Form 1041
      Line 44 (Overpayment) Line 28
      Line 45a (Refund) Line 29b
      Line 46 (Applied to Estimated Tax) Line 29a
      Line 47 (Tax Due) Line 27
      Line 48 (Estimated Tax Penalty) Line 26

  2. After completing the conversion process, refer to the Form 1041 IRM 3.11.14 for further coding and editing requirements. Review the newly converted Form 1041 for conditions that may require further action, for example; CCC codes, Audit Codes, support for newly transcribed lines, and routing attachments.

    Reminder:

    If any conditions exist that require correspondence with the taxpayer to resolve, do not convert Form 1040A. Correspond with the taxpayer for a completed Form 1041.

3.11.14.39.5  (01-01-2009)
Transferring Tax Data for Decedent Form 1040EZ to Form 1041

  1. Form 1040EZ

    1. If there are no money amounts present on Form 1040EZ to convert to Form 1041, edit Zeros on lines 1, 9, 23 and 25.

    2. For prior year returns, match the Form 1040EZ line descriptions to the same line descriptions on Form 1041.

    3. The following tables contain instructions for transferring tax data from Form 1040EZ to Form 1041.

    4. Income -- Edit the "Income" Section of Form 1040EZ to the applicable Income lines on Form 1041:

      Edit from Form 1040EZ Edit to Form 1041
      Line 2 (Taxable Interest) Line 1
      Lines 1 (Wages) and 3 (Unemployment) Line 8

    5. Credits, Payments, and Tax -- Edit the "Tax, Credits, and Payments" Section of Form 1040EZ to the applicable Income lines on Form 1041:

      Edit from Form 1040EZ Edit to Form 1041
      Line 7 (Federal Income Tax Withheld) Line 24e
      Line 11 (Total Tax) Line 23

    6. Refund/Balance Due –-- Edit the "Refund/Balance Due" Section of Form 1040EZ to the applicable Income lines on Form 1041:

      Edit from Form 1040EZ Edit to Form 1041
      Line 12a (Refund) Line 29b
      Line 13 (Tax Due) Line 27

  2. Do not detach Form 1040EZ from Form 1041 when the Form 1040EZ is received attached to Form 1041 on a correspondence reply return.

3.11.14.40  (01-01-2009)
Form 1041-QFT, Qualified Funeral Trusts

  1. Form 1041-QFT was added to the Internal Revenue Code by the Taxpayer Relief Act of 1997 to permit certain trusts which previously filed Forms 1041 as Grantor Trusts to elect Qualified Funeral Trust status.

    If ... Then ...
    An original Domestic Form 1041-QFT is received at any Submission Processing site other than CSPC

    Exception:

    Domestic Forms 1041-QFT that are erroneously sent to OSPC will be processed in Ogden.

    1. Detach and forward to the following address:
       
      Internal Revenue Service
      Cincinnati Submission Processing Campus
      Cincinnati, OH 45999

    An original International Form 1041-QFT is received at any Submission Processing site other than OSPC.

    1. Detach and forward to the following address:
       
      Internal Revenue Service
      1973 North Rulon White Blvd
      Mail Stop 4091
      Ogden, UT 84404

    2. Prepare an 86C Letter to inform the taxpayer that the return has been sent to OSPC.

    Caution:

    Prior to shipping Forms 1041-QFT to CSPC or OSPC, ensure that the Received Date is edited to the return.

  2. A composite Form 1041-QFT is a single return filed by a trustee that includes some or all of the QFTs of which he or she is a trustee. Statements may be attached in lieu of Schedule D. See IRM 3.11.14.40.12.4.(8).

  3. Due date for Form 1041-QFT is April 15, 2009.

  4. Forms 1041-QFT are processed with Document Code "39" , MFT "05" , Tax Class "2" .

  5. For a display of Form 1041-QFT transcription lines, See Exhibit 3.11.14-10.

3.11.14.40.1  (01-01-2009)
BMF Consistency

  1. The purpose of this initiative is to achieve consistency in the BMF Code & Edit processing IRMs.

  2. Topics for BMF Consistency have been identified and developed as a coordinated effort between Cincinnati SPC, Ogden SPC, and CAS Submission Processing (BMF Policies, Procedures, and Guidance Branch).

  3. BMF Consistency subsections are identified by a "♦" (diamond) before and after the subsection title.

  4. Text in normal print is the common processes to be used for all BMF returns. The text in bold print is form-specific and applies to this IRM only.

3.11.14.40.2  (01-01-2009)
General Editing Guidelines

  1. The following general information can be used when editing Form 1041-QFT returns.

  2. General instructions eliminate repetition of the same instructions for each return. If the general instructions and the specific instructions conflict, follow the specific instructions.

  3. Do not bracket any negative amounts.

  4. Received date is edited in MMDDYY format.

  5. If a current year/prior year return is filed on a tax form other than the appropriate tax year, convert tax return to the current year format.

  6. If a current year (2008) return is filed on a prior year tax form, renumber the prior year return to comply with current year line numbers.

  7. If a current year (2008) form is used to report prior year tax information, edit the tax period to reflect the prior year.

  8. If the prior year return is filed on the correct/incorrect 1041-QFT tax form, renumber the prior year form to current year format (1998 and subsequent).

3.11.14.40.2.1  (01-01-2009)
♦Edit Marks♦

  1. See IRM 3.11.14.2.1.

3.11.14.40.2.2  (01-01-2009)
Editing Dollar and Cents

  1. Effective 1-1-2004, the Form 1041-QFT program was modified to accept dollars-only transcription for all lines on Form 1041-QFT and its attachments except for the following, which are dollar and cent lines.

    • Line 13 – Tax

    • Line 14 – Credits

    • Line 15 – Net Tax

    • Line 16 – Total Payments

    • Line 17/18 – Tax Due/Overpayment

    • Line 19a – Credit Elect

    • Line 19b – Refund

  2. C&E is no longer required to edit a vertical line, 00, dash, or decimal point to indicate dollars and cents.

3.11.14.40.3  (01-01-2009)
♦Action Codes♦

  1. See IRM 3.11.14.3.

3.11.14.40.4  (01-01-2009)
Unprocessable Conditions and Correspondence Action

  1. See IRM 3.11.14.5.

3.11.14.40.4.1  (01-01-2009)
Correspondence

  1. See IRM 3.11.14.5.3.

3.11.14.40.4.1.1  (01-01-2009)
Correspondence Imaging System (CIS) Returns

  1. See IRM 3.11.14.5.3.1.

3.11.14.40.4.1.2  (01-01-2009)
Use of Fax for Taxpayer Submissions

  1. See IRM 3.11.14.5.3.2.

3.11.14.40.5  (01-01-2009)
Examination of Attachments

  1. See IRM 3.11.14.6.

3.11.14.40.6  (01-01-2009)
Computer Condition Codes (CCC)

  1. See IRM 3.11.14.7.

3.11.14.40.7  (01-01-2009)
Special Returns

  1. See IRM 3.11.14.8.

3.11.14.40.7.1  (01-01-2009)
Re-entry Document Procedures

  1. See IRM 3.11.14.8.6.

3.11.14.40.7.2  (01-01-2009)
♦Refund Returns (45-Day Jeopardy and Million Dollar Refunds♦

  1. See IRM 3.11.14.8.7.

3.11.14.40.7.3  (01-01-2009)
Secured/Prepared Returns

  1. See IRM 3.11.14.8.8.

3.11.14.40.7.3.1  (01-01-2009)
IRC Section 6020(b) - Prepared by Collections

  1. See IRM 3.11.14.8.8.1.

3.11.14.40.7.3.2  (01-01-2009)
Collections Secured

  1. See IRM 3.11.14.8.8.2.

3.11.14.40.7.3.3  (01-01-2009)
Examination Prepared

  1. See IRM 3.11.14.8.8.3.

3.11.14.40.7.3.4  (01-01-2009)
Examination Secured

  1. See IRM 3.11.14.8.8.4.

3.11.14.40.7.4  (01-01-2009)
♦Statute Returns♦

  1. See IRM 3.11.14.8.10.

3.11.14.40.8  (01-01-2009)
Additional Form 1041-QFT Edit Sheet Perfection

  1. This section provides instructions for coding entries previously edited to the Form 6049 (Form 1041 Edit Sheet).

  2. A valid Audit Code or Penalty and Interest Code are the only codes that can be edited in the left margin next to Line 6 of Form 1041-QFT.

3.11.14.40.8.1  (01-01-2009)
Audit Codes

  1. See IRM 3.11.14.9.1. If required, edit, "1 -" followed by the appropriate audit code in the left margin next to Line 6 of Form 1041-QFT.

3.11.14.40.8.2  (01-01-2009)
Penalty and Interest Code

  1. See IRM 3.11.14.21.6. If required, edit "4 - 1" in the left margin next to Line 6 of Form 1041-QFT.


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