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Part 3. Submission Processing

Chapter 21. International Returns and Documents Analysis

Section 261. Foreign Investment in Real Property Tax Act (FIRPTA)

3.21.261  Foreign Investment in Real Property Tax Act (FIRPTA)

3.21.261.1  (01-01-2009)
Overview

  1. This Internal Revenue Manual (IRM) provides Code and Edit instructions for processing Form 8288, "U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests" to the Business Master File (BMF), with a Date of Transfer of 12/13/2005 or later .

  2. Form 8288 is processed to the BMF under:

    • File Location Code 60 (OSPC) or 98 (PSPC)

    • Tax Class 1

    • Doc Code 40

    • Blocking Series 000-999

    • Master File Tax (MFT) Code 17

    • Program Code 11330

    • Function 210

  3. If the Date of Transfer on Form 8288 is 12/12/2005 or prior, transship the return to the Cincinnati Submission Processing Center (CSPC), Non-Master File (NMF) Accounting Section for processing to the Automated Non-Master File (ANMF) system. These returns will be assigned a "17641 Document Locator Number (DLN)" and processed as a NMF return.

  4. There is no official extension form for Form 8288.

  5. The Return Due Date (RDD) for Form 8288 is 20 days after the Date of Transfer (DOT), Or, 20 days from the withholding certificate date (if applicable).

  6. All Form 8288 returns with a DOT of 12/13/2005 or later will be processed at the Ogden Submission Processing Center (OSPC) as a "Non-Remittance" return.

    Caution:

    Form 8288 will no longer have the payment amount "green rockered" on it. The payments will be processed with a separate DLN with Doc Code 17, 19, 70, or 76 and assigned a Trace ID and Transaction Sequence Number. These numbers will be posted to Master File.

3.21.261.1.1  (01-01-2009)
Form 8288 Background

  1. The Foreign Investment in Real Property Tax Act (FIRPTA) of 1980 was amended by the Deficit Reduction Act of 1984. This amendment added Section 1445 to Chapter 3, Subchapter A, of the Internal Revenue Code of 1954. Section 1445 requires the withholding of tax on dispositions of certain U.S. Real Property Interests (USRPI) by a foreign seller.

  2. IRC Section 897 of the Code (enacted under the 1980 FIRPTA legislation) provides rules for the taxation of nonresident alien individuals and foreign corporations on sales or other dispositions of U.S. real property interests (including installment sales, exchanges, foreclosures, and deeds in lieu of foreclosure of U.S. real property interests). In addition, Regulated Investment Companies (RICs) and Real Estate Investment Trusts (REIT) with foreign investors are also subject to the FIRPTA rules under IRC 1445 and IRC 897.

  3. FIRPTA applies to what it defines as a U.S. real property interest under IRC 897(c), which includes

    • Any interest in real property located in the United States or the Virgin Islands (including an interest in land or improvements thereon, a mine, well, or other natural deposit).

    • Certain personal property associated with the use of real property.

    • Any interest, other than solely as a creditor, in any domestic corporation, unless the taxpayer can show that the corporation was not a U.S. real property holding corporation during the previous 5 years (or during the period in which the transferor held the interest, if shorter).

  4. Duty to withhold - Under IRC 1445(a) Transferees (buyers) of a USRPI from foreign seller are required to deduct and withhold tax. A transferee can be a Domestic or Foreign person or entity. If the transferee fails to withhold, then the transferee will be held liable for:

    • The payment of the tax, and

    • The payment of any applicable penalties and interest.

  5. Agents have a duty to provide notice of false certifications under IRC 1445(d).They are not liable for the withholding tax under IRC 1445(a).

  6. The withholding agent must withhold and remit to the IRS 10% of the amount indicated in Box 5, Part 1, or Line 5b, Part 2 of Form 8288. Or, 35% of the amount indicated on Line 5a, Part 2 of Form 8288.

    Note:

    The Transferee can pay a lesser amount if they received an approved Withholding Certificate (W/H Cert) from the Internal Revenue Service (IRS). A copy of the W/H Cert must be attached to Form 8288, and an entry must be present on either Line 6b, Part 1 or Line 5c, Part 2. Otherwise, the tax must be 10% or 35%.

  7. The duty to Withhold under an IRC 1445(e) distribution may lie with either the:

    • Foreign Corporation

    • Domestic Corporation

    • Domestic or Foreign Partnership

    • Trustee of Domestic or Foreign Trust

    • Executor of Domestic or Foreign Estate

  8. The Internal Revenue Service issued Treasury Decision (TD) 9082 on August 5, 2003, revising the Income Tax Regulations under IRC 897,IRC 1445, and IRC 6109to require the use of a Taxpayer Identification Number on the submission of FIRPTA documents under IRC 897 and IRC 1445. TD 9082 became effective August 5, 2003.

  9. Form 8288 is due by the 20th day after the Date of Transfer (DOT). However, if a withholding certificate is issued to the transferor reducing the amount of FIRPTA tax owed, then Form 8288 is due by the 20th day after the date on the withholding certificate. If the principal purpose for filing the application for a withholding certificate was to delay paying the IRS the amount withheld, interest and penalties will apply to the period after the 20th day after the DOT.

  10. Form 8288 is due on or before the 20th day from the DOT. There is no official extension form for Form 8288. However, if a withholding certificate is issued to the transferor reducing the amount of FIRPTA tax owed, then the Form 8288 is due on or before the 20th day from the date on the withholding certificate. This date must be documented on Line 3, Form 8288 as the new DOT. If the principal purpose for filing the application for a withholding certificate was to delay paying the IRS the amount withheld, interest and penalties will apply to the period after the 20th day after the DOT.

    Reminder:

    If you correct the DOT on the 8288, then you must also correct the DOT on the 8288-A.

3.21.261.1.1.1  (01-01-2009)
Form 8288-A Background

  1. Form 8288-A, Statement of Withholding on Disposition by Foreign Persons of U.S. Real Property Interests, are filed on a transaction by transaction basis, and attached to Form 8288. Two copies (Copy A & B) of Form 8288-A are to be attached to Form 8288 for each transferor (seller).

    Note:

    In general, a foreign person is a nonresident alien individual, foreign corporation, foreign partnership, foreign trust, or foreign estate, but not a resident alien individual.

  2. Prior to ISRP processing, Numbering will forward the Batch work to the FIRPTA unit. The FIRPTA unit will:

    1. Stamp the incoming Batch work (Form 2345, Batch Transmittal) with their "FIRPTA" stamp.

    2. Assign the Batch work to a FIRPTA tax examiner who will populate the 8288-A FIRPTA database with each foreign transferor(s) Copy A information, which will be used at a later date to perform the credit verification using Form 13698International Credit(s) Verification Slip.

      Example:

      Form 1120-F, 8804, or 1040-NR Fiduciary with a Form 8288-A needs to be credit verified.

    3. Stamp and mail "Copy B of Form 8288-A" to the foreign transferor or correspond for a TIN.

    4. Stamp Form 8288 with the FIRPTA date stamp to show that they have processed Copy A of Form 8288 to the FIRPTA database.

    5. Release the Batch work (Form 8288 & Copy A of Form 8288-A) to the ISRP clerical function for pipeline processing.

3.21.261.1.2  (01-01-2009)
Section 3705(a) - IRS Employee Contacts

  1. Background: The Restructuring and Reform Act of 1998, IRC 3705 provides identification requirements for all IRS employees working tax related matters.

  2. IRS employees are required to give their name and unique identification number during taxpayer telephone, face to face, and written contact. Refer to IRM 1.2.4.6 for additional information.

    Note:

    "As a general rule, do not give out another employee's name or telephone number. If the taxpayer or representative needs to speak to another employee or manager, offer to take the taxpayer's/representative's number and have the requested employee call them back."

3.21.261.1.2.1  (01-01-2009)
General Disclosure Guidelines

  1. IRC 6103 establishes the taxpayer's (T/P's) right to privacy of tax information. You must be sure that you provide correct information to the correct T/P or authorized representative (check IDRS CC CFINK for POA).

  2. Taxpayer returns and return information must remain confidential as provided for in IRC 6103,Confidentiality and disclosure of returns and return information. IRC 7431 provides civil damages for unauthorized disclosure of returns and return information. IRC 7213 and 7213A provides criminal penalties for unauthorized disclosure or unauthorized inspection of returns and return information and requires employees be discharged from duty if charged and convicted of these offenses.

  3. For more information on General Disclosure Guidelines refer to IRM 21.1.3,Operational Guidelines Overview, and for full discussions refer to IRM 11.3.1 through IRM 11.3.40,Disclosure of Official Information.

3.21.261.1.3  (01-01-2009)
♦Taxpayer Advocate Service - Service Level Agreement (SLA)♦

  1. The National Taxpayer Advocate (NTA) and the Commissioner, Wage & Investment (W&I) Division have had a Service Level Agreement (SLA) since September 1, 2002. This SLA is periodically updated. The most recent update of the SLA was made effective on February 1, 2008, and it outlined 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 Division.

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

    1. Preparing Form 12412, Operations Assistance Request.

    2. Securing all necessary supporting documentation.

    3. Forwarding Form 12412 and documentation with Form 3210, Document Transmittal, to the W&I Division 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 involving economic hardship or within three (3) workdays for cases involving systemic hardship (delay or procedural/systemic failure).

    3. Responding to TAS within three (3) workdays for cases involving economic hardship in writing, via facsimile or hand delivery regarding his or her relief/no relief decision.

    4. For cases involving systemic hardship, negotiating with TAS a reasonable timeframe for resolution.

    5. Providing TAS with the name and telephone number of the W&I employee assigned the case.

  4. For further information, refer to IRM 13.1.19, Taxpayer Advocate Case Procedures - TAS Operations Assistance Request (OAR) Process.

3.21.261.1.4  (01-01-2009)
Submission Processing Policy on the use of FAX and Signature Stamps

  1. For information on submission processing policy on the use of fax and signature stamps refer to IRM 21.3.4.14.5, and/or IRM 11.3.1.10,Use of Fax for Taxpayer Submissions.

3.21.261.1.5  (01-01-2009)
♦BMF Consistency♦

  1. The purpose of this initiative is to achieve consistency in the BMF Code & Edit processing IRMs. Topics for the BMF Consistency have been identified and developed as a coordinated effort between Cincinnati, Ogden and W&I Submission Processing (BMF Policy & Procedures Branch). Text in normal print is the common processes for BMF returns. The text in BOLD print is form specific and applies to this IRM only.

    Note:

    Subsections are identified by a ♦ (diamond) before and after the title.

3.21.261.2  (01-01-2009)
Form 8288 Attachments

  1. Use the following instructions when handling attachments submitted with Form 8288.

    Note:

    Form 8288 is also used to transmit Form 8288-A ( See IRM 3.21.261.1.1.1) to the IRS. Form 8288-A is not to be detached from Form 8288.

3.21.261.2.1  (01-01-2009)
Examination of Attachments

  1. Examine all attachments to the return being processed and take action as required by the attachment.

    Note:

    Form 8288 is also used to transmit Form 8288-A to the IRS. Form 8288-A must be recorded in the International National Standard Application (NSA) Data Base by the FIRPTA unit. Therefore, if the attached Form 8288-A does not contain the "FIRPTA Stamped Copy B Mailed" on it, then Form 8288-A has not been recorded in the TIER II International NSA Data Base by the FIRPTA unit.

  2. When an attachment has an effect on the document being processed leave it attached, unless a specific instruction requires that it be detached.

    Example:

    If Form 8822,Change of Address is attached to Form 8288, follow the instructions in the "Routing Guide for Attachments." See IRM 3.21.261.2.6.

    Reminder:

    Before routing Form 8822 verify that the change of address on Form 8822 appear on Form 8288, Line 1, and on the set of Forms 8288-A. If not, then edit the correct address on Form 8288 and/or Forms 8288-A.

  3. In the event that the FIRPTA stamp does not appear on Form 8288, refer to IRM 3.21.261.1.1(2) for additional instructions.

3.21.261.2.2  (01-01-2009)
Related Attachments

  1. A Withholding Certificate is attached to Form 8288. Edit the withholding certificate date from the certificate to Form 8288, Line 3 (Part I or II), because this will now be the new Date of Transfer (DOT) .

  2. If Form 8288 is received in Code and Edit with remittance attached, immediately forward the return and the remittance to the work leader.

  3. Leave a "MEMORANDUM RECEIPT" attached to the return.

  4. If the taxpayer has requested that an attachment be returned:

    1. Photocopy the attachment and attach the photocopy to Form 8288.

    2. Return the original attachment to the taxpayer using Form 3699, Return of Documents to Taxpayer.

    Caution:

    When processing Form 8288 deposits, the "Date of Transfer" is used to determine the tax period, as well as distinguish a NMF Form 8288 from a BMF 8288. Review Form 8288 for a possible withholding certificate. When a withholding certificate is attached, edit the Withholding Certificate notice date to Line 3 of Form 8288. This will be the new Date of Transfer used for the tax period, as well as the new Date of Transfer.

3.21.261.2.3  (01-01-2009)
Other Attachments to Form 8288

  1. Withholding Certificate:

    • This document will only be attached to Form 8288 when the transferee withholds less than the required 10 or 35 percent FIRPTA tax. The taxpayer must also check either Line 6b of Part I, or have a significant entry (greater than Zero) on Line 5c, Part II of Form 8288 to indicate reduced withholding.

    • The withholding certificate is to remain attached to Form 8288.

  2. Form 8288-B, Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests. This document is not supposed to be attached to Form 8288.

    If Then
    Form 8288-B is attached, Detach Form 8288-B and forward it to the Accounts Management Branch, FIRPTA unit, along with any supporting documentation for processing.

    Form W-7/W-7SP, Application for IRS Individual Taxpayer Identification Number . This document may or may not be attached to Form 8288.

    If Then
    Form 8288 has a W-7/W-7SP attached to it, Forward Form W-7/W-7SP with all associated documentation and a copy of Form 8288 to the Austin Submission Processing Center (AUSPC). Forward it to the Internal Revenue Service Center, Attn.: Individual Tax Identification Number (ITIN) Unit, Austin, TX 73301-0002.

    Note:

    Once the ITIN is assigned, AUSPC will notate ITIN # on the copy of Form 8288 and fax or mail the ITIN edited Form 8288 back to OSPC for continued processing.

    Form W-7 is attached to Form 8288-A Forward a copy of Form 8288-A to the AUSPC. Forward it to the Internal Revenue Service Center, Attn.: ITIN Unit, Austin, TX 73301-0002. Enter the following remarks on the transshipping transmittal. Edit the assigned ITIN number on Form 8288-A and FAX it to the originator at the OSPC Code and Edit unit for document processing.
    A Form W-7 and 8288-B are attached to Form 8288, Forward the W-7 and 8288-B to AUSPC. Forward it to the Internal Revenue Service Center, Attn.: ITIN Unit, Austin, TX 73301-0002. Enter the following remarks on the transshipping transmittal; Edit the assigned ITIN number on Form 8288-B and return it to the originator (transship it back to Ogden Accounts Management (AM) Dept.) for document processing.

3.21.261.2.4  (01-01-2009)
Processing Attachments and Special Returns — Form 8288

  1. Use the following instructions to process attachments to Form 8288 and Special Return situations.

  2. Do not detach from Form 8288:

    • any Form 8288-A documents, or

    • any Form 8288-B withholding certificate, appearing in the table below.

      Withholding Certificate Letter Numbers

      Transferee/Buyer
      3309 (Zero/Exempt - Generic)
      3310 (Reduced MTAXL - Generic)
      3312 (Reduced Installments)
      3313 (Rejected - RFMI not Recd)
      3314 (Rejected - MTAXL >10%)
      3316 (Rejected - Generic)
      3497 (Reduced - Generic)
      3793 (No TIN – 8288-B)

  3. Form 8288 is:

    1. Required to be filed with the Ogden (OSPC) Submission Processing Centers.

    2. Returns erroneously filed at other locations are to be forwarded to OSPC for processing.

3.21.261.2.5  (01-01-2009)
Unrelated Attachments

  1. Requests for adjustment of another return:

    1. Remove any attachment requesting an adjustment (Automated Data Processing (ADP) or non-ADP).

    2. Forward to the BMF International Accounts Management Department for action.
      Internal Revenue Service
      Attn: BMF INTL AM Dept. — DP N-315
      11601 Roosevelt Blvd
      Philadelphia, PA 19154

    3. lMPORTANT: Leave an "Action Trail" on the Form 8288, notating the attachments removed from the Form 8288.

  2. If the attachment does not include the taxpayer's name, address or TIN, enter this information on the attachment.

  3. If the taxpayer writes a question or requests assistance on the return itself, check with your manager.

  4. If a tax authorization is attached to correspondence ( Form 2848/ Form 8821), review the correspondence to determine if other requests are involved:

    1. If other requests are involved, photocopy the correspondence and send the copy to the BMF Accounts Management Branch for action, and send the original Form 2848/ Form 8821 to the Centralized Authorization File (CAF) function for processing.

    2. If other requests are not involved, send the original correspondence and the authorization to the Campus CAF function for processing.

  5. Other Unrelated Attachments:

    1. Remove other unrelated attachments (such as other returns, acknowledgments, requests for tax forms, etc.) from the document being processed, and

    2. Route to the proper function for necessary action.

  6. Always include the following information when forwarding documents to other functions:

    • Name and address of the taxpayer.

    • Taxpayer Identification Number.

    • Received Date

    • Tax Period and type of document from which detached.

    • Action required to be taken:

  7. If an attachment is removed because the majority of the information is unrelated to the Form 8288 being processed:

    1. Photocopy the attachment.

    2. Attach it to the Form 8288.

    3. Leave an "Action Trail" .

    4. Route the attachment to the appropriate function.

3.21.261.2.6  (01-01-2009)
♦ Routing Guide for Attachments ♦

  1. All attachments to the return must be reviewed before the return can be considered processable.

    1. Attachments should only be detached when specifically instructed.

    2. Attachments must contain Name, Address, EIN and Received Date. Enter if missing.

    3. Edit Action Trail(s) (e.g. 2848 DETACHED) in the lower left margin of the return.

  2. Follow the general guidelines below for each attachment:

    DOCUMENT/FORM DETACH ACTION
    A General Power of Attorney or a Durable Power of Attorney or Tax Information Authority is submitted on any document other than Form 2848 or Form 8821 NO Take no action. Leave the Power of Attorney or Tax Authorization attached to the return. Do not route to the CAF function.
    Closing Agreement NO Leave attached
    CP 515-518 NO Route the notice and return to the Collections Function.
    Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, Copy A ONLY YES Refer to local Maildex for in house routing for transcription.(not applicable to Form 8288)
    Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, Copy B ONLY NO Leave attached to Form 8804(not applicable to Form 8288)
    Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, Copy C ONLY YES Return to Taxpayer (not applicable to Form 8288)
    Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, Copy D ONLY YES Return to Taxpayer (not applicable to Form 8288)
    Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, Copy E ONLY YES Return to Withholding Agent(not applicable to Form 8288)
    Form 2220, Underpayment of Estimated Tax by Corporation NO Leave attached to Form 8804.
    YES If attached to a return other than an 8804, detach and route to Accounts Management. (not applicable to Form 8288)
    Form 2290, Heavy Highway Vehicle Use Tax Return NO Leave attached
    Form 2678 - Employer / Payer Appointment of Agent NO Leave attached
    Form 2758, Application for Extension of Time to File Certain Excise, Income, Information and Other Returns YES If original signature, Route to Receipt and Control for rebatch.
    NO Leave attached if it is a photocopy.
    Form 2848 YES

    • Edit taxpayer name and EIN on Form 2848 if missing.

    • Edit received date on Form 2848.

    • Route Form 2848 to CAF function.

    • Edit action trail on tax return.
    Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts YES Route to Receipt and Control for rebatch.
    Form 3520-A, Annual Return of Foreign Trust With a U.S. Owner YES Route to Receipt and Control for rebatch.
    Form 5472 Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business YES Route to Receipt and Control for rebatch (form will be scanned for LMSB purposes).
    Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns YES If the extension is for a different period. Route to Receipt and Control for rebatch.
    Form 8109, Request for Deposit Slips, or Coupon Books. YES Complete Form 4417A and Route to Entity Control. (not applicable to Form 8288)
    Form 8233, Exemption from Withholding on Compensation for Independent (& certain Dependent) Personal Service of a Nonresident Alien Individual YES Transship to:
    Internal Revenue Service
    International Section
    P.O. Box 920
    Bensalem, PA 19020-8518
    Form 8288, U.S. Withholding Tax Return for Disposition by Foreign Persons of U.S. Real Property Interests — with original signature YES, If attached to another return being edited Send to be processed
    Form 8288, U.S. Withholding Tax Return for Disposition by Foreign Persons of U.S. Real Property Interests — Copy of return NO "X out" Form 8288 and leave attached.
    Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests NO Leave attached
    Form 8288-B, Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests YES Route to Ogden AM department
    Form 8582, Passive Activity Loss Limitations. NO Leave attached (not applicable to Form 8288)
    Form 8804, Annual Return for Partnership Withholding Tax (Section 1446), with original signature YES, If attached to another return being edited Send return to be processed
    Form 8804, Annual Return for Partnership Withholding Tax (Section 1446), Copy of original return NO, but check for posting If not posted to BMF, send the return to be processed.
    Form 8804 Schedule A, Penalty for Underpayment of Estimated Section 1446 Tax by Partnerships NO Leave attached
    8804-C Certificate of Partner-Level Items to Reduce Section 1446 Withholding YES Route to:
    Internal Revenue Service
    Examination Branch DP S-607
    11601 Roosevelt Blvd.
    Philadelphia, PA 19154
    Form 8804-W, Installment Payments of Section 1446 Tax for Partnerships NO Leave attached to Form 8804.
    YES If attached to a return other than an 8804, detach and return to the taxpayer. (not applicable to Form 8288)
    Form 8809, Application for Extension of Time to File Information Returns NO Leave attached (not applicable to Form 8288)
    Form 8813, Partnership Withholding Tax Payment Voucher (Section 1446) NO "X out" Form 8813(s) and leave attached (not applicable to Form 8288)
    Form 8821, Tax Information Authorization YES

    • Edit taxpayer name and EIN on Form 8821 if missing.

    • Edit received date on Form 8821.

    • Route Form 8821 to CAF function.

    • Edit action trail on tax return.
    Form 8822, Change of Address YES Route to Entity Control (Only the 8822)
    Form SS-4 Application for Employer Identification Number YES Route to Entity Control
    Form W-7, Application for IRS Individual Taxpayer Identification Number YES Transship to:
    Internal Revenue Service
    ITIN Operation
    P.O. Box 149342
    Austin, TX 78714-9342
    Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding YES Route to Receipt & Control and notate RETURN TO TAXPAYER. (Taxpayers are not required to send this in to the IRS)
    IRC 1.1446-6 Notation Withholding Certificate or any associated reasonable cause request YES Route to: Internal Revenue Service Examination Branch DP S-607 11601 Roosevelt Blvd. Philadelphia, PA 19154
    Other Tax Returns (original signature). YES Route to the appropriate function unless specifically directed otherwise.

    Example:

    Returns such as those attached to a consolidated return.
    Remittance Found. NO Immediately hand carry the return and remittance to supervisor.
    Request for Adjustment to another document. YES Route to the appropriate function. The attachment must contain a Name, Address, EIN, and Received Date. Enter if missing.
    Request for Forms or Schedules. NO Current Year Forms--Prepare Form 4190 and forward to the Forms Distribution Center for processing.
    Prior Year Forms--Prepare Form 6112 and forward to the Forms Distribution Center for processing.

    Note:

    Forms 4190 and 6112 are generally used for IMF requests. Therefore, enter all BMF requests for forms and/or schedules in the WRITE-IN portions of the form.

    Request for information or inquiries. YES

    1. Photocopy the attachment if it contains any data necessary to continue processing the return.

    2. Attach the copy to the return.

    3. Route the original attachment to the proper office for necessary action.
    Request for money transfer. YES If the taxpayer notates transfer of money to the return you are processing:

    1. Prepare Form 3465 to route the request to Rejects Unit.

    2. Hold the return for 2 cycles before processing.


    If the taxpayer notates transfer of money from the return you are processing:

    1. Prepare Form 3465 to route the request to Reject Unit.

    2. Edit CCC X to freeze overpayment.

    3. Continue processing return.
    State Tax Returns (Original or Copy With Original Signature). YES Route to Receipt & Control and notate RETURN TO TAXPAYER.
    State Tax Returns (Photocopy, facsimile, or no signature) NO Leave attached.
    Statement Establishing Reasonable Cause for Delinquent Filing. NO

    1. Issue 1382C letter.

    2. Continue editing the return.
    Tax Deposit Memorandum Receipt NO Leave attached

3.21.261.3  (01-01-2009)
Substitute Form 8288

  1. In order to increase the efficiency of processing Form 8288, the Service has standardized the formats for unofficial or substitute forms.

  2. Occasionally, National Office will receive proposed substitute Form 8288 from filers and printing firms.

  3. After evaluation, National Office will either approve or deny the use of the proposed substitute form.

  4. Unacceptable substitute forms are returned to the requester, requiring that the form be revised before re-submission for evaluation.

  5. Requirements for producing substitute Form 8288 are provided in an annual revenue procedure.

  6. Generally, approved substitutes submitted for processing are required to mirror the official form.

  7. If any required field is missing:

    1. Return the document to the filer with IDRS letter 3104C.

    2. Advise the filer that they MUST use either the official form or an approved substitute containing all required data.

  8. When a substitute Form 8288 is received with a copy of an approval letter, accept the substitute for processing.

  9. If there is doubt that Headquarters would have approved a particular form (i.e., a required schedule or data field is missing),

    1. Photocopy the document.

    2. Forward to the "Submission Processing Process and Analysis Staff, Substitute Forms Coordinator."

    3. The coordinator will verify if Headquarters approved the form.

3.21.261.4  (01-01-2009)
General Editing Information — Form 8288

  1. Beginning with Tax Year Ending 12/31/2005 Forms 8288 are processed as BMF Returns (Program 11330).

  2. If a Form 8288 with a date of transfer of 12/12/2005 and prior is submitted by the taxpayer, do not process it through the BMF, instead forward to Batching and Numbering on Form 4227 with the following explanation "DOT on 8288 return pre 12/13/2005 - Process via NMF" , and transship to the CSPC Accounting Branch (Internal Revenue Service, Cincinnati, Ohio 45999-0005) so it can be processed to the NMF.

3.21.261.4.1  (01-01-2009)
Editing Form 8288

  1. Enter all edit marks on the document being input to the ADP system with red, unless a specific instruction requires another type of marking.

    1. Never blot out the original entry on a document when deleting or correcting an entry.

    2. Always exercise care to ensure that the original entry remains legible.

  2. The only items to be edited on the return are those which will be transcribed.

  3. When editing a document, a "dash" or "none" should be considered as a positive "zero," entry, unless otherwise specified for that particular line item.

  4. Perfect taxpayers entries, which may interfere with transcriptions.

  5. Never alter, erase, or obliterate a taxpayer's entry.

  6. Use arrows when indicating the correct transcription line for a misplaced entry, but never place the arrow through another transcription line.

3.21.261.4.2  (01-01-2009)
"Amended" Form 8288 Return

  1. A Transferee who files a Form 8288, and later identifies a discrepancy in the original return filing may elect to correct the document by filing a corrected/amended return. A request for an early refund may be received via this method. Do not "G" code the Form 8288 return. Instead edit the return as if it is an original return.

    Note:

    Do not "G" code a numbered or unnumbered Form 8288 return. If unnumbered, transship to PAMC. If numbered, process it as an original return and circle out the words mentioned in paragraph 2.

  2. Do not edit a CCC "G" on a numbered Form 8288 document, even if it clearly indicates it is an:

    • "AMENDED" ,

    • "SUPERSEDING" ,

    • "DUPLICATE" , or

    • "REPLACEMENT" , or

    • A positive statement that the return is not the first one filed for the same tax period is attached.

  3. News of Interest:

    Beginning January 1, 2008, All TC 976 Form 8288 returns posting to the MFT 17 account will post to the business master file with the following fields appearing on the CP 193 notice and on BMFOL, under the TC 976.

    • Description of USRPI

    • Date of Transfer

    • Amount Realized on Transfer

    • Tax per Taxpayer

    • Total Tax per Computer

    • Reduced withholding Indicator


    This information will assist Submission Processing and Accounts Management when performing FIRPTA credit verifications (Form 8288-A) or processing CP 193 cases when the tax examiner is unable to obtain the original return from files.

    Note:

    The 8288-A would have already been processed and recorded by Code & Edit FIRPTA unit to the International NSA Database.

    Reminder:

    The first original Form 8288 will post to the BMF Tax module with a TC 150 and TC 570 in the same cycle in order to avoid erroneous refunds.

3.21.261.4.3  (01-01-2009)
Received Date

  1. Edit the Received Date on Line 2, last row, right side, in YYYYMMDD format.

    Figure 3.21.261-1

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

    Editing Received Date when Missing

  2. Determine the received date in the following priority when it is required and there is no valid date stamp or handwritten received date:

    1. Latest postmark on the envelope or latest date from a private delivery service mark.

      Note:

      When the envelope or label is not attached, use the postmark date stamped or handwritten on the return to determine the received date.

    2. Latest date by the taxpayers signature(s).

      Exception:

      Use the signature date for prior year returns only when it is within the current year. Also, do not use the signature date to determine the received date for replies to correspondence.

    3. Use the DLN Julian date minus 10-days. Or,

    4. Today's date minus 10-days.

      Exception:

      See the instructions in IRM 3.11.3.7.2.14 when determining the received date for a reinput return.

  3. If the return is being returned to the taxpayer, circle all but the latest Received Date.

  4. Circle all dates except the earliest valid IRS Received Date when multiple dates and/or date stamps are present.

  5. Change the received date to the postmark date if the Official U.S. Postmark shows legal timely mailing.

  6. If the return contains both U.S. Postal and Private meter marks, honor the U.S. Postal Service marks. Refer to IRM 3.0.273, "Administrative Reference Guide" for further information.

  7. DO NOT change the received date on a return if:

    • No envelope is attached.

    • No postmark is indicated on a return bearing a delinquent Received Date

  8. Process a return as a timely-filed return when:

    • It is necessary to use the signature date or the DLN control date to ascertain timeliness.

    • The computation results in a timely Received Date.

  9. Use the following charts to select and edit the Received Date:

    FOR RETURNS ADDRESSED TO IRS

    IRS Received Date Official US Postmark Received Date
    On/Before Due Date N/A Use IRS Received Date
    After Return Due Date (RDD) On or Before RDD Use U.S. Postmark Date
    After Return Due Date After RDD Use IRS Received Date
    After Return Due Date Period Missing/Illegible Use IRS Received Date
    Missing/Illegible Present Use U.S. Postmark Date
    Missing/Illegible Missing/Illegible Use Signature Date, or DLN Julian Date minus 10-days

    Note:

    If the postmark is not legible, the taxpayer has the burden of proving the date when the postmark was made. Refer to IRC Regulation 301.7502-1(c)(1)(iii).

  10. Take the following action when processing returns that were sent back to the taxpayer:

    • Timely Replies: If the return and the reply to correspondence is received by the RDD, consider the return timely.

    • Late Replies: If the return and the reply to correspondence is received after the RDD, circle all previous received dates.

    • Incomplete Replies: If the requested information is not completely received with the taxpayer's reply, circle the IRS original received date (if present) in red, and delete the questionable entry with a red "X" , and use/edit the IRS received date stamped on the correspondence.

    Reminder:

    If the legal due date falls on a Saturday, Sunday, or holiday, the return is considered to be timely if it is postmarked by the first work day thereafter. The Service allows an extended due date from the legal due date, which includes Saturdays, Sundays and legal holidays. A return received after the extended due date is considered delinquent if the postmark date is after the extended due date.

3.21.261.4.3.1  (01-01-2009)
Statute Of Limitations

  1. A period of limitation is a time period established by law to review, analyze and resolve taxpayer and/or IRS related issues.

  2. The IRC states that the Internal Revenue Service (IRS) will assess, refund credit, and collect taxes within specific time limits. These limits are known as Periods of Limitations. When they expire, we can no longer assess additional tax, allow a claim for refund by the taxpayer, nor take collection action. There are different periods of limitations for Assessment, Refund, and Collection Statutes. The expiration of these periods is tracked separately.

  3. The different periods of limitations expiration dates that are tracked are:

    • Assessment Statute Expiration Date (ASED): Return filed early - 3 years from the Return Due Date (RDD) or 3 years from approved extended date; Returns filed late - 3 years after the return was filed; No return filed - assessment may occur at anytime. IRC 6501(a) and (c)(3).

    • Refund Statute Expiration Date (RSED): 3 years from the time the return was filed or, if later, 2 years from the date after the tax was paid. IRC 6511(a) and (b)(2)(A).

    • Collection Statute Expiration Date (CSED) is generally 10 years from the 23-C date or 10 years from the date of the TC 29X or 30X adjustment. IRC 6502(a).

    Note:

    Exceptions may apply to change the periods of limitations.

  4. There are several conditions that may change the general Assessment Statute Expiration Date (ASED). They include:

    • IRC 6501 (c) (1) — False Return

    • IRC 6501 (c) (4) — Extensions by Agreement

    • IRC 6501 (b) (3) — Substitute for Return by Authority of IRC 6020(b)

      Caution:

      IRC 6020(b) is not a tax return that triggers the period of limitations on assessment under IRC 6501(a). If the taxpayer subsequently files a return reporting an additional liability, that return constitutes an original tax return allowing for the assessment of any additional amount not already assessed under the Substitute for Return program and triggering the running of the period of limitations on assessment for the tax year.

    • IRC 6501 (d) — Is request for Prompt Assessments, which shortens the Assessment Period

    • IRC 6501 (e) — Substantial Understatement (in excess of 25% Omission of Income provides for a 6 year period of limitations.)

    • IRC 6503 (a) — Issuance of Statutory Notice of Deficiency (90-day Letter, which suspends the running of the period of limitations.)

    • IRC 6503 (h) — Bankruptcy

    • IRC 6229 (a) through (h) — Partnership Items

3.21.261.4.4  (01-01-2009)
Types of Edit Marks

  1. Use only the following edit marks when editing Form 8288.

  2. "X" to the left of an entry indicates to the terminal operator that the item to the right of the "X" should not be transcribed.

  3. When an entry requires editing, but the instructions do not clearly indicate the type of edit mark to use:

    1. Place a red "X" to the left of the incorrect entry, and

    2. Write the correct entry (if any) to the left of the incorrect entry.

  4. A circled entry indicates to the terminal operator that the entry should not be transcribed.

    Note:

    Generally, a red "X" is used when editing tax data entries and a red circle is used when editing entity data.

  5. An underlined entry indicates to the terminal operator to be sure to transcribe the item.

  6. A red arrow indicates to the terminal operator the correct placement of a misplaced entry.

  7. Use a red arrow if the filer has misplaced an item that is close to the correct line and there is no doubt as to where the entry belongs.

    Exception:

    Do not arrow from one transcription line to another transcription line.

  8. For "Foreign Addresses" , the //$ is used in the entity area to identify the beginning and ending of a foreign country code.

    Example:

    /EI/$ is edited for "Ireland" and /GM/$ is edited for "Germany."

3.21.261.4.5  (01-01-2009)
Rejection of a Non Automatic Data Processing (ADP) Return

  1. Reject any Form 8288 which has a Date of Transfer (DOT) of 12/12/2005 or prior.

  2. Rejection Action:

    1. Prepare Form 4227, Intercampus Reject or Routing Slip, indicating the reason for rejection.

    2. Attach Form 4227 with explanation "NMF 8288 return DOT 12/12/2005 and prior" to the face of the document and transship to CSPC (Internal Revenue Service, Cincinnati, Ohio 45999-0005).

3.21.261.5  (01-01-2009)
General Correspondence Procedures

  1. All taxpayer correspondence is governed by the guidelines in IRM 21.3.3Taxpayer Contacts - Incoming and Outgoing Correspondence/Letters.

  2. Correspondence includes all written communication from a taxpayer or their representative, excluding tax returns, whether solicited or unsolicited, and includes:

    • Responses to IRS requests for information or data;

    • Requests for information, including that which may accompany tax returns;

    • Annotated notice responses;

    • Other correspondence providing additional information or disputing a notice.

  3. Unnumbered amended returns, although not included in the definition of taxpayer correspondence, should be handled in accordance with guidelines contained in IRM 21.3.3Taxpayer Contacts - Incoming and Outgoing Correspondence/Letters. Transship unnumbered amended Forms 8288 to PAMC for processing.

  4. Do not send acknowledgment letters if the request is expected to be completed within 30 days.

  5. If the request for action has not been completed in 30 days, an interim reply will be made telling the taxpayer when the required action is expected to be completed.

    Note:

    If during the taxpayer contact, it appears there may be a hardship situation, TAS Criteria is met, or the taxpayer insists on being referred to the TAS, complete Form 911 and refer to your local Taxpayer Advocate. Refer to IRM Subsection 13.1.7.2, for a list of TAS Case Criteria.

  6. In all instances where you are instructed to correspond for missing information on Form 8288, completely examine the return to ensure that all missing information is requested in the same letter. Initiate a one-time correspondence only.

    Note:

    If you receive a call from a foreigner or their representative inquiring about the ITIN number, instruct them to call 1-800-908-9982 (if they are calling from within the U.S.). If the caller is calling from outside of the U.S., or has questions on International issues, then instruct them to call 215-516-2000.

3.21.261.5.1  (01-01-2009)
♦Correspondence Imaging System (CIS) Returns♦

  1. Correspondence Imaging System (CIS) is an inventory system for scanning all Account Management (AM) receipts 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.

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

    If... And... Then...
    The "CIS" return has a Form 13596 or Form 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/reinput returns.

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

3.21.261.6  (01-01-2009)
Unprocessable Conditions

  1. A return must contain the following specific items before it is considered processable. If they are not present and cannot be found on the return or its' attachments, then edit CCC "U" to send case to Rejects. Rejects will research IDRS, to locate the information in order to make the return processable.

    • An Employer Identification Number (EIN), Social Security Number (SSN), Individual Temporary Identification Number (ITIN) or Internal Revenue Service Number (IRSN). See IRM 3.21.261.9.4 and IRM 3.21.261.10.3 for additional information.

    • A legible name (for the Name Control).

    • A valid Tax Period (200512 and subsequent).

  2. Conditions which make a document unprocessable and will require Rejects to correspond with the taxpayer:

    • The name is so illegible or incomplete that the Name Control cannot be determined.

    • The EIN contains other than nine numeric characters and cannot be perfected from information on the return or attachments.

    • The document has more than one ElN.

    • The filer has stated that they have combined information for more than one tax period or more than one type of return.

    • Data entries are so incomplete or illegible that they cannot be perfected or transcribed.

    • The document has been mis-blocked.

    • The return is unsigned.

    • The return has only entity data and no other statements or attachments from the taxpayer.

    • Any condition set forth as unprocessable in the sections on processing specific documents.

  3. Correspond with the taxpayer for the required information using IDRS letter 3104C when Form 8288 is numbered and unprocessable, plus edit CCC "U" . Complete Form 3696 with appropriate 3104C letter paragraphs, then attach Form 3696 to Form 8288 and continue editing (leave return in pack of work).

3.21.261.7  (01-01-2009)
♦Re-Entry Returns – 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. A Re-entry document is referred to as:

    • A Re-input return (a return that has not posted to the master file, e.g. unpostable).

    • A Re-processable return (a return that has posted to the master file, e.g. return posted to the wrong account or module).

    Caution:

    Do not use Form 13596 in reprocessing Form 8288 returns with a 60140 DLN, use only Form 3893.Form 8288 returns must maintain their DLN integrity for purposes of the Form 8288-A data capture in the International NSA Database. However, if Form 8288 is being transshipped to Ogden and the DLN begins with 98140, use Form 13596 so Ogden can assign a 60140 DLN to Form 8288.

  2. Each re-entry return must have Form 3893, Re-input Document Control, or Form 13596, Reprocessing Returns attached.

    • Form 3893 is used to reinput documents

    • Form 13596 is used to reprocess documents.

  3. Always leave Form 3893 or Form 13596 on the front of the return. It must remain as a permanent part of the document.

    Exception:

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

  4. Examine Form 3893 and/or Form 13596 to determine the action needed to make the return processable.

    If... Then...
    Form 3893 or 13596 is missing

    1. Edit CCC "U" on return.

    2. Route to Receipt & Control using Form 4227.

    3. Leave the return in the batch.
    Form 3893 or 13596 is attached Determine if the return was edited according to current processing instructions.

  5. If additional information is needed to make the return processable, prepare Form 13596.

    1. Enter CCC "U" (Unprocessable) on the return.

    2. Forward Form 13596 to Typing and Suspense to issue letter and filing in the "Hold File" .

3.21.261.7.1  (01-01-2009)
♦Form 3893, Re-Entry Document Control♦

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

    Caution:

    Do not use Form 13596 in reprocessing Form 8288 returns with a 60140 DLN, use only Form 3893.Form 8288 returns must maintain their DLN integrity for purposes of the Form 8288-A data capture in the International NSA Database. However, if Form 8288 is being transshipped to Ogden and the DLN begins with 98140, use Form 13596 so Ogden can assign a 60140 DLN to Form 8288.

  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 instructions and keep all returns clipped together.

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

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

    Form 3893 Action Taken
    Box 14 (Remarks) Ensure that the information is edited to the return.
    Box 15 (Process as)

    1. Circle out any green rockered money amounts and edit marks that may indicate a receipt of remittance.

    2. Do not change any tax due amounts.

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

    If... Then...
    Improper perfection Edit the same correction in red to the appropriate area.
    Taxpayer error Leave the entries as shown on the document.

  6. A received date must be present on all Re-input returns:

    If... Then...
    Received date is not present Edit a received date on line 2, last row, right side, in YYYYMMDD format. See IRM 3.21.261.4.3(1).
    Multiple received dates are present Circle out all but the earliest date.

  7. When additional information is still needed to make the return processable, prepare Form 3696(or other approved Correspondence Action Sheet) or Form 4227 for the appropriate action (e.g., correspondence, research, etc.).

  8. When perfection is not possible, pull the return and attach Form 4227 noting, "PERFECTION NOT POSSIBLE" and return to initiator.

  9. If the year digit is not present on the return, determine the correct year digit from the Form 3893 or Form 13596.

  10. When Form 8288 does not have a received date, determine the received date using the instructions in IRM 3.21.261.4.3.

3.21.261.7.2  (01-01-2009)
♦Form 13596 Reprocessing Returns♦

  1. Form 13596, Reprocessing Returns, is used to reprocess a return to the correct account or module that had previously posted to the wrong account or module.

    Caution:

    Do not use Form 13596 in reprocessing Form 8288 returns with a 60140 DLN, use only Form 3893.Form 8288 returns must maintain their DLN integrity for purposes of the Form 8288-A data capture in the International NSA Database. However, if Form 8288 is being transshipped to Ogden and the DLN begins with 98140, use Form 13596 so Ogden can assign a 60140 DLN to Form 8288.

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

    Note:

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

  3. If the return was edited according to current processing instruction, 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 "R, D, or 7" .

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

    If... Then...
    Improper perfection Edit the same correction in red to the appropriate area.
    Taxpayer error Leave the entries as shown on the document.

  5. A received date must be present on all reprocessed returns:

    If... Then...
    Received date is not present Edit a received date on line 2, last row, right side, in YYYYMMDD format. See IRM 3.21.261.4.3(1).
    Multiple received dates are present Circle out all but the earliest date.

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

3.21.261.8  (01-01-2009)
Refund Returns (45-Day Jeopardy and Million Dollar Refunds) - Reserved

  1. This subsection has been removed from this IRM since it does not apply to Form 8288.

3.21.261.9  (01-01-2009)
Editing Common Fields — Form 8288

  1. Use the following instructions when editing the described fields in subsequent sections.

3.21.261.9.1  (01-01-2009)
Dates

  1. Use the following formats when editing dates:

    • YYYYMMDD for Received Dates

    • MMDDYYYY for Date of Transfer (DOT)

    • YYYYMM for Tax Periods

  2. The month value edited must be in the range 01-12.

  3. The day value edited must be in the range 01-31.

  4. Always edit the tax period.

    Example:

    200612, 200701,200709, etc...

    Note:

    Transcription under this program is permitted ONLY for those Form 8288 returns containing a "Date Of Transfer (line 3)" of December 13, 2005, and subsequent.

    See IRM 3.21.261.10.1.

3.21.261.9.2  (01-01-2009)
Names

  1. Name fields permit the entry of up to forty (40) characters.

  2. Valid characters are alpha (a-z) and numeric (0-9).

  3. All Name Controls are to be underlined.

  4. The name control is the first four letters of the transferees last name or the business entity's first name. Do not underline the word "THE" when it is followed by more than one word.

    Reminder:

    Refer to the Name Control Job Aid, Document 7071 and Document 7071A for further guidance.

3.21.261.9.3  (01-01-2009)
In Care of Name

  1. This is a 35 character field which may or may not be present.

  2. Valid characters are alpha (a-z), numeric (0-9), ampersand (&), percent (%), hyphen (-), and slash (/).

  3. Verify that the "in-care-of name" is located above the street address.

  4. Arrow up the "in-care-of name" if located below the address to line 1, after the name.

    Note:

    The taxpayer must complete either Part I or II of Form 8288, therefore, when line 1 is mentioned, make sure the editing is done in the correct Part completed by the taxpayer.

  5. Edit the percent sign (%) to the left of the "in-care-of" or symbols (c/o) followed by the appropriate name.

    Example:

    The taxpayer crossed out the original "in-care-of" name and added the new name or has entered a new "in-care-of" name in brackets)

    If... Then...
    The "in care of" name is located on the street address line preceding the street address No editing is required.
    The "in care of" name is located below the street address line Arrow the "in care of" name above the street address.
    The "in care of" name is shown on an attachment Edit the "in care of name" above the street address beginning with the "%" or the "c/o" in the first position.
    An "in-care-of" name is changed but there is no indication of an address change, If the "%" is not present , then edit the "%" (percent sign) or "c/o" to the left of the "in-care-of" name (in the first position followed by the appropriate name.
    An "in-care-of" name is present and an indication of an address change is shown,

    1. If the"%" is not present, then edit the "%" (percent sign) or "c/o" to the left of the "in-care-of" name (in the first position followed by the appropriate name.

    2. Correct the address.
    There is no indication that the "in-care-of" name is changed, If the "%" is not present , then edit the "%" (percent sign) or "c/o" to the left of the "in-care-of" name (in the first position followed by the appropriate name.

3.21.261.9.4  (01-01-2009)
Taxpayer Identifying Numbers

  1. Entries in this field may be either,

    • EINs (entered in NN-NNNNNNN format).

    • SSNs (entered in NNN-NN-NNNN format).

    • ITIN (entered in 9NN-NN-NNNN format with 4th and 5th digit ranges from 70-88).

    • IRSN (entered in 9NN-NN-NNNN* format with valid 4th and 5th digit ranges of 02, 04, 05, 06, 07, 08, 09, 10, 17, 18, 19, 28, 29, 37, 38, 39, 49, and 89.)

    Reminder:

    Route the return to the BMF Entity unit if it has an SSN or ITIN on Line 1, so Entity can establish the entity with TC 000. If TC 000 has been edited on the return (orange ink), then it has already been established.

  2. The valid characters are Numeric (0-9).

  3. Form 8288 Only: When the entered TIN is an SSN, ITIN or IRSN, then a TIN Type indicator of "0" must be edited immediately to the right of the TIN. If the TIN entered is an EIN, the TIN Type field is to be left "blank" .

  4. If more than one TIN is entered in a field, then research the TIN to make sure it matches the name, and:

    1. Edit or perfect the first TIN entered, and

    2. Circle out the second or subsequent TIN(s).

      Note:

      If both an SSN and EIN are present, use the SSN and the individuals entity name associated with the SSN for transcription, unless the entity name is a business name, then use the EIN. Depending on the TIN you select, circle out the other TIN.

  5. Be sure to edit the correct TIN Type indicator after each TIN. See IRM 3.21.261.10.3.1.

3.21.261.9.5  (01-01-2009)
♦General Information and Perfection of Foreign Address♦

  1. This is a 35 character field.

  2. Valid characters are alpha (a-z) and numeric (0-9).

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

  4. Returns with APO or FPO addresses are considered domestic addresses.

  5. Effective January 1, 2007: — Route returns with a foreign address to Ogden Submission Processing Center (OSPC) for processing. Prepare 86C to inform the taxpayer that the return has been sent to OSPC.

  6. Returns with addresses in the following U.S. Possessions are considered to be a foreign address for processing purposes but are edited in the same way as domestic addresses.

    1. A two-character alpha code must be edited for the possession name.

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

    2. A ZIP code must be present. Edit the appropriate ZIP code if one is not provided.

  7. All other foreign addresses are edited the same as a domestic address with the following exceptions:

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

    2. Circle out the foreign country and edit the country code preceded by a "/" and followed by "/$" as the last entry in the address.

      Note:

      Submission Processing BMF Foreign Address Document Job Aid (Number 2324–002) provides examples for editing foreign addresses.

    3. If the foreign address is from Australia, Brazil, Canada, Cuba, Italy, Mexico or The Netherlands, check if the address contains a province, state or territory name.

      If Then
      A province, state or territory name is present

      1. Circle out province, state or territory name.

      2. Enter appropriate abbreviation.
      A province, state or territory name is not present Continue editing the return.
      Province, state or territory is shown in abbreviated format, Continue editing the return.

    4. A ZIP code is not required on a foreign address. Foreign addresses use a postal code that is entered before the city or foreign country and is part of the address.


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