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Part 3. Submission Processing

Chapter 0. General

Section 273. Administrative Reference Guide (Cont. 3)

3.0.273  Administrative Reference Guide (Cont. 3)

3.0.273.26 
Submission Processing Sites (SPS) Operations

3.0.273.26.12  (01-01-2009)
Unpostable

  1. Transactions that fail validity checks during MF processing are returned to the campuses on the Unpostable (UP) tape for correction. Once the unpostable errors are corrected the transactions are placed on a "good tape" and retransmitted to ECC-MTB.

3.0.273.27  (01-01-2009)
Document Handling

  1. Returns/documents to be processed are assembled into numbered blocks of 100 documents or less or unnumbered batches of approximately 100 documents.

    • Returns/documents receive a document locator number (DLN).

    • Blocks of returns/documents have a Block Control Document.

3.0.273.27.1  (01-01-2009)
Numbered Returns/Documents

  1. Each numbered document is stamped with a DLN.

    • An unprocessible numbered return/document cannot be withdrawn from a block during processing although it can be coded for later withdrawal.

    • An unprocessible unnumbered document can be withdrawn from an unnumbered batch and appropriate action taken.

  2. "Refund returns" and "balance due returns" are edited before they are numbered.

  3. "Full paid returns" and "part paid returns" are numbered before they are edited.

    Note:

    During processing, numbered returns/documents cannot be removed from block.

3.0.273.27.2  (01-01-2009)
Block Control Document

  1. Each block of documents is required to have a Block Control Document attached for control and identification purposes. If numbered blocks are received during initial processing without a Block Control Document, the block has to be returned to the originating area for correction. There are six types of Block Control Documents. See IRM 3.10.72, Extracting, Sorting, and Numbering, for exhibits.

  2. During initial processing, the following information is verified to maintain the integrity of the document control system:

    • All documents in a block or batch are the same type;

    • Each document has only one DLN;

    • The first eleven digits of the DLN on the documents in a block are the same as the corresponding digits stamped on the control document;

    • The document is coded if a numbered remittance document is in a numbered non-remittance block and controlled by Form 1332. (Later it is withdrawn and reblocked); and,

    • If every document in a non-remittance block has no remittance attached.

3.0.273.27.3  (01-01-2009)
Photocopies

  1. When any part of a document must be photocopied, stamp or edit the photocopy with the statement "Photocopy - Do Not Process."

3.0.273.28  (01-01-2009)
Edit Marks

  1. Edit marks on a document being processed for input to the Automatic Data Processing (ADP) System through the Distributed Input System (DIS) are entered in brown, red or green pencil (or pen) according to local procedure.

  2. The original entry on a document is never obliterated, altered or erased when deleting or correcting an entry. Care is always exercised to ensure that the original entry remains legible. Perfected entries provide a legible "edit trail" for anyone who may work with the return later.

  3. The only items edited on the return are those to be transcribed, except where specific instructions require editing of a non-transcribed item. Lines are left blank if the entry would be a zero amount.

3.0.273.28.1  (01-01-2009)
Types of Edit Marks

  1. The following are marks used in the editing of returns, forms and schedules.

3.0.273.28.2  (01-01-2009)
"X" ing

  1. The X is used to delete tax data or to indicate an item is not to be transcribed.

    Exception:

    For returns going through Optical Character Recognition (OCR), erroneous entries are lined through.

3.0.273.28.2.1  (01-01-2009)
Circling

  1. Circling indicates an entry is not to be transcribed. The circle is used to delete entity data or a received date.

3.0.273.28.2.2  (01-01-2009)
Underlining

  1. Underlining indicates that an entry, such as the name control, tax period or a received date which is other than an IRS stamped date, is to be transcribed.

3.0.273.28.2.3  (01-01-2009)
Arrowing

  1. Arrowing indicates a misplaced entry. An arrow may be used if the misplaced item is close to the correct line and there was no question where the entry belongs. A double arrow may be used if the same figure is to be transcribed in two different places provided local management has established that DIS will transcribe the data in both places as well as any required transcription data between the two arrows.

3.0.273.28.2.4  (01-01-2009)
Check Mark

  1. A check indicates an entry has been manually math verified and is correct.

3.0.273.28.2.5  (01-01-2009)
Bracketing

  1. Bracketing indicates:

    • The taxpayer's last name when editing the entity portion of a document; or,

    • A negative numerical amount.

3.0.273.28.2.6  (01-01-2009)
Vertical Line or Decimal Point

  1. A vertical line or decimal point indicates the division between dollars and cents if no distinction has been made.

3.0.273.28.2.7  (01-01-2009)
Lined Through Entries

  1. Entries on returns being processed through OCR are deleted by lining through the entry instead of using an "X" to the left.

3.0.273.28.2.8  (01-01-2009)
Miscellaneous Marks

  1. "Zero," "dash" or "none" or "blank" are considered as an entry, except when specific handbook instructions require editing of the entry.

  2. When edit marks have been entered by another area such as Collection or Adjustments, they are not re-edited other than to place the marks in the correct area.

3.0.273.29  (01-01-2009)
Special Circumstances

  1. This section provides general information on circumstances that require special handling. These circumstances are:

    • Disaster/emergency;

    • Combat zones;

    • Killed in terrorist action (KITA);

    • Bribe; and,

    • Assault/threat.

3.0.273.29.1  (01-01-2009)
Disaster/Emergency Procedures

  1. The Service may provide relief in the form of extensions of time to file or pay under IRC § 6081 and 6161 in any disaster or emergency. After a Presidentially declared disaster or a terroristic or military action, the Service may postpone the time (for a period of up to one year) for performing certain time-sensitive actions in areas the Service determines are affected under IRC § 7508A.

  2. Headquarters (HQ) will notify the submission processing sites of areas affected by a Presidentially declared disaster or a terroristic or military action and of the new dates for timely filing returns and paying taxes.

  3. The period for timely filed returns is programmatically set and normally will not be reprogrammed for disasters/emergencies.

  4. Returns received within the time frames established by HQ and meeting specific conditions will qualify for relief from filing or payment penalties.

3.0.273.29.1.1  (01-01-2009)
Public Notification of Postponements Due to a Presidentially Declared Disaster or a Terroristic or Military Action

  1. The Service generally will publish a Notice or issue other guidance (including a Service News Release) providing relief with respect to a specific Presidentially declared disaster or a terroristic or military action.

  2. The published guidance instructs taxpayers how to note on their tax return that they are affected by a disaster, and what, if any, additional information should be attached. For example, the published guidance may direct taxpayers to write the name of the disaster in red ink at the top of their returns.

    Note:

    IRC § 7508 (Combat Zone) lists several actions for which the time for performance may be postponed under IRC § 7508A. Also, the Service publishes a complete list of such actions. See Rev. Proc. 2005–27, 2005–20 I.R.B. 1050, or its successor, for an updated list. The notification described in (1) above may list specific actions or simply stat all of the actions listed in Rev. Proc. 2005–27 (or its successor) are postponed.

3.0.273.29.1.2  (01-01-2009)
Persons Affected by a Presidentially Declared Disaster

  1. The following taxpayers may qualify for relief from filing and/or payment penalties:

    • An individual whose principal residence is located in a disaster area;

    • Any business entity or sole proprietor whose principal place of business is located in a disaster area;

    • Certain relief workers assisting in a disaster area;

    • Individuals, estates or trusts, or business entities and sole proprietors whose records necessary to meet a deadline are maintained in a disaster area;

    • The spouse of a taxpayer qualifying for relief (with respect to a joint return, only), and

    • Any other person determined by the IRS to be affected by a disaster.

3.0.273.29.2  (01-01-2009)
Combat Zones

  1. Areas declared combat zones result in application of IRC Sections 112, (exclusion of combat pay), 692 (Killed in Action), and 7508 (Postponement of Time to Perform Certain Actions).

  2. A Combat Zone is an area designated in an Executive Order by the President of the United States. The current combat zones are listed in IRM 25.6.16.8, Current Combat Zones and Qualified Hazardous Duty Areas.

  3. Area Certified by the Department of Defense. The Department of Defense may certify an area as being in direct support of military operations in a combat zone and a person serving in such an area who receives hostile fire/imminent danger pay under 37 U.S.C. § 310 (a)(13) is treated as serving in a combat zone pursuant to Treas. Reg. § 1.112-1(e).

  4. Qualified Hazardous Duty Area. Congress has extended some of the same tax relief provided for those in a combat zone to those in a qualified hazardous duty area. Congress has also extended the relief to persons performing qualifying service outside such an area. See Notice 99-30, Tax Relief for Those Affected by Operation Allied Force, 1999-1 C.B1135, for example of a qualified hazardous duty area. The current qualified hazardous duty areas are listed in IRM 25.6.16.8, Current Combat Zones and Qualified Hazardous Duty Areas.

  5. Contingency Operation. The rules in IRC § 7508 have been extended for a contingency operation designated by the Department of Defense for an individual deployed outside the United States away from the individual's permanent duty station while participating in an operation. This new rule is effective for any period for performing an act which has not expired before 11/11/2003.

3.0.273.29.2.1  (01-01-2009)
Forgiveness of Department of Defense (DOD) Debts

  1. Letters might be received stating that the DOD is cancelling a debt against the U.S. government. The DOD has authority to cancel certain debts incurred by combat zone participants.

    • This authority is for debts incurred through the DOD.

    • The cancellation authority does not extend to tax debts. These letters cannot be used as a basis for cancellation of a tax debt.

  2. If a member of the U.S. Armed Forces dies while in active service in a combat zone or from wounds, disease, or other injury received in a combat zone, the decedent's income tax liability is forgiven for the tax year in which death occurred and for any earlier tax year ending on or after the first day the member served in a combat zone in active service.

  3. Any forgiven tax liability that has already been paid will be refunded, and any unpaid tax liability at the date of death will be forgiven. In addition, any unpaid taxes for prior years will be forgiven and any prior year taxes paid after the date of death will be refunded.

3.0.273.29.2.2  (01-01-2009)
Time Periods for Performing Acts in a Combat Zone

  1. In general, for certain acts, such as determining the amount of underpayment interest owed by a taxpayer, the period of time that an individual served in a combat zone/qualified hazardous duty area and a period of 180 days after the last day in a combat zone/qualified hazardous duty area are disregarded.

  2. For certain acts that may be performed during a period of time, such as the January 1 to April 15 period for filing an income tax return, the deadline is extended for a period of 180 days after the last day in a combat zone/qualified hazardous duty area and in addition for the number of days that were left in the period for performing the act when the individual entered the combat zone/qualified hazardous duty area.

  3. This rule also takes account for the time an individual was continuously hospitalized as a result of an injury received while serving in combat zone/qualified hazardous duty; however, not more than 5 years of hospitalization inside the U.S. may be taken into account.

  4. Individuals re-entering the combat zone for a second time. These are called "in & out." Treat these as beginning on the earliest entry date and the latest departure date because they were in and out within short time frames. At present, the system does not recognize that a new period has started. You must calculate separately, the interim period, between the combat zone periods for purposes of the statutory periods for assessment, collection, and refunds, and for penalty and interest computation. See IRM 25.6.16.6, Re-Entry into the Combat Zone.

3.0.273.29.2.3  (01-01-2009)
Signature/Missing Information on Combat Zone Return

  1. One signature is acceptable on a joint return when there is an indication that the military spouse is in a "Combat Zone" .

  2. Correspond for any missing information on combat zone returns. If a POA is attached, correspond with the person authorized to receive correspondence.

3.0.273.29.2.4  (01-01-2009)
Reference

  1. Refer to Publication 3, Armed Forces' Tax Guide, for additional information.

3.0.273.29.3  (01-01-2009)
Killed In Terrorist Action (KITA) And Killed In Action (KIA)

  1. All KITA/KIA returns except Estate Tax Return, Form 706, will be processed at the Andover campus. When processing individual income tax returns identified as Killed in Terrorist Action (KITA) or Killed in Action (KIA), take the following actions. The Forms 706 are processed at the Cincinnati campus.

    1. Route the return to the KITA /KIA Coordinator in the Accounts Management Center for processing.

      Note:

      A list of current KITA/KIA Coordinators can be located in http://serp.enterprise.irs.gov/databases/who-where.dr/kita_kia_coordinators.dr/kita_kia_coordinators.htm.

    2. The Accounts Management (AM) KITA/KIA Coordinator will determine if the taxpayer qualifies for KITA/KIA processing. All AM KITA/KIA Coordinators are provided a list of identified taxpayers.

    3. If the AM KITA/KIA Coordinator determines the return does not qualify for KITA/KIA, they will prepare Form 4227 notated "Not eligible for KITA/KIA" , attach it to the front of the tax return, and return it to Code and Edit for processing.

    4. If the taxpayer's return is eligible for KITA/KIA, it will not be returned from the AM KITA/KIA Coordinator. The AM KITA/KIA Coordinator will expedite the routing of the return to Andover Accounts Management Center using Form 3210, Document Transmittal.

    5. The AM KITA/KIA Coordinator should use the following addresses when mailing:

      If ... Then ...
      Using the U.S. Postal Service Mail to: Internal Revenue Service, P. O. Box 4053, Woburn, MA 01888
      Using a private delivery service (e.g., Federal Express) Send to: Internal Revenue Service, 310 Lowell Street, Andover, MA 01810 Stop 661

    6. See IRM 21.6.6.4.19.2.2 for additional information on the processing of KITA/KIA returns.

    Note:

    When the return qualifies it will not be returned from the KITA/KIA coordinator.

3.0.273.29.4  (01-01-2009)
Bribery Attempts

  1. Attempts to bribe Service employees represent flagrant attacks on the integrity of the Service and its employees. You should be perceptive and alert to such overtures and take the following actions when bribery offers are received.

    1. Avoid any statement or implication that you will or will not accept the bribe.

    2. Attempt to hold the matter in abeyance.

    3. Report the matter Immediately to the TIGTA.

    4. Avoid unnecessary discussions of the matter with anyone.

3.0.273.29.5  (01-01-2009)
Assault/Threat Incidents

  1. IRC Section 7212, Title 26, and Section 111, Title 18, of the United States Code provides criminal penalties of imprisonment and fine for anyone convicted of threatening, assaulting, or impeding an Internal Revenue employee acting in his or her official capacity.

  2. The chances for being threatened or assaulted are always present when carrying out work related to the IRS activities, but maybe more so when dealing with taxpayers who owe taxes and can't or don't want to pay them.

  3. An employee who receives a threat via telephone should avoid confrontational statements to the taxpayer.

    • Ask taxpayers to clarify vague statements.

    • If possible, have someone else (preferably your manager) listen to the call in order to corroborate the statements made by the taxpayer.

  4. Obtain the following information:

    • The taxpayer's name;

    • Social Security Number;

    • Location of taxpayer;

    • Time call is received; and,

    • Any other general information to aid TIGTA in their investigation.

  5. Do not remain on the line if the taxpayer is being verbally abusive.

  6. If a written threat is received, no contact should be made with the taxpayer until after the threat has been referred to the Treasury Inspector General for Tax Administration (TIGTA) and a decision made on what protective measures are in order.

3.0.273.29.5.1  (01-01-2009)
Reporting Assault/Threat

  1. Employees should report to TIGTA all assaults, threats, or forcible interference made against them in the course of their official duties.

  2. Employees should report to TIGTA all assaults or threats against members of their families to impede the performance of the employees' official duties.

  3. Employees should report every incident no matter how insignificant it may appear on the surface. The determination of what action, if any, is to be taken will be made by TIGTA.

3.0.273.29.5.2  (01-01-2009)
Additional List of Incidents to Report to TIGTA

  1. The following is a list of the incidents that should be reported to the Treasury Inspector General for Tax Administration. This is provided as a guide only and is not intended to limit the type of incidents to be reported.

    • Incidents involving the discharge, display, or other use of a firearm or other dangerous weapon.

    • Threats to damage the employee's reputation or standing in the community.

    • Threats to bring harm to another Internal Revenue employee; or,

    • Assaults and threats during duty hours at the hands of unknown or unidentified assailants whether or not the incident is connected with a robbery or attempted robbery.

3.0.273.30  (01-01-2009)
Postmarks

  1. Postmarks are used to determine the timeliness of filed IRS returns. Only Legible official postmark dates, Killer Bar Strips, or Postage Validation Imprinter Labels (PVI), are accepted as proof of filing timely.

3.0.273.30.1  (01-01-2009)
PVI Labels

  1. Valid PVI Labels are:

    • Affixed to letters that are First and Third Class, Certified and Registered.

    • Used on small parcels, rolls and ordinary parcels.

    • Affixed to flats mailed at single piece rate (both Priority and Third Class).

3.0.273.30.2  (01-01-2009)
Killer Bar Strips

  1. Official Killer Bar Strips are identified by a series of solid or broken lines used to cancel postage stamps. In order to be valid, the strips must contain a date, city and state.

3.0.273.30.3  (01-01-2009)
Metered Postmarks

  1. Metered dates are only considered a postmark date when there is a "P.O." or "U.S.P.S." in the date circle. A U.S. postmark takes precedence over a metered date.

  2. Official markings are easily identified on metered postmarks.

  3. Invalid postmarks have no official markings.

3.0.273.30.3.1  (01-01-2009)
Postmark Reference

  1. See IRM 3.10.72, Extracting, Sorting and Numbering, for further information.

3.0.273.30.4  (01-01-2009)
Private Delivery Service (PDS)

  1. A Designated Private Delivery Service is treated as United States mail for purposes of timely mailing, timely filing and paying rule in IRC § 7502. The Service provides special rules to determine the date recorded electronically in a data base or marked on a cover by a Designated Private Delivery Service that will be treated as the postmark date for purposes of IRC § 7502.

3.0.273.30.4.1  (01-01-2009)
Designated PDS

  1. The following three PDSs are designated as qualifying for the "timely mailing as timely filing paying" rule of IRC 7502.

    • DHL Worldwide Express (DHL)–DHL "Same Day" Service; DHL Next Day 10:30 am; DHL Next Day 12:00 pm; DHL Next Day 3:00 pm; and DHL 2nd Day Service.

    • Federal Express (FedEx)–FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2 Day, FedEx International Priority, and FedEx International First.

    • United Parcel Service (UPS)–UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express.

  2. Other types of service offered by DHL, FedEx, and UPS are not designated.

3.0.273.30.4.2  (01-01-2009)
Timeframes

  1. DHL and UPS are required to store their received date for six months in a data base. Each PDS provides a toll free number to call and verify the received dates. They are:

    • DHL USA Overnight 1-800-225-5345.
    • DHL "Same Day Service" 1-800-345-2727.
    • UPS 1-800-742-8577.

3.0.273.30.4.3  (01-01-2009)
FedEx Labels

  1. FedEx provides the date on the label on the cover of the item delivered to the Service.

  2. If only one label, use the date shown on the label. If two labels, use the FedEx generated label.

3.0.273.30.4.4  (01-01-2009)
PDS Tracking

  1. Submission Processing will track PDS packages by the PDS tracking number. This information will be input into a database.

    Exception:

    If more than one return is received in a package, only the top return will be tracked.

3.0.273.30.4.5  (01-01-2009)
Delinquent Returns

  1. Returns delivered to the Service by the designated PDS after the due date will be stamped as follows:

    1. Postmark date as date received by PDS; and,

    2. IRS received date.

  2. The postmark date is used on the current returns to determine the timely mailing/timely filed provisions.

3.0.273.30.4.6  (01-01-2009)
Taxpayer Responsibilities

  1. Taxpayers who disagree with the postmark date should provide verification from the PDS of the actual delivery date to the PDS.

  2. For an item delivered after the due dates, that is postmarked by the U.S.P.S. on or before the due date the item will be considered filed on the date of the postmark,

  3. A mark made by a private postage meter may be treated the same as a U.S.P.S. postmark, If, however, the item is received after the time when a document or payment so mailed and so postmarked by the U.S.P.S. would ordinarily be received, the taxpayer may have to establish that it was actually timely deposited in the U.S. mail, that the delay was due to a delay in the transmission of the U.S. mail, and the cause of the delay.

3.0.273.30.4.7  (01-01-2009)
Effective Dates

  1. Designation is effective for documents and payments that were given by taxpayers to a designated PDS on or after April 11, 1997.

3.0.273.30.4.8  (01-01-2009)
PDS References

  1. Refer to Notice 2004–83, 2004–52 C.B. 1030 or any superseding notice, for the list of designated services and any special rules for determining the postmark date as marked by a delivery company.

  2. IRM 3.10.72 provides detailed information on how Submission Processing will track the PDS tracking number.

3.0.273.31  (01-01-2009)
Received Date

  1. Documents other than timely filed returns will be stamped with a received date unless otherwise specified. See IRM 3.10.72, Extracting, Sorting and Numbering, for exceptions and additional information.

  2. Types of acceptable received dates include:

    • An IRS Submission Processing Site date stamp;

    • An IRS Area Office date stamp;

    • An Area Office handwritten received date consisting of "Received" and a date written in red ink and a signature and title (e.g. Revenue Officer (RO), Revenue Agent (RA), TSR (Taxpayer Service Representative, etc) of the authorized employee; or,

    • A handwritten date in brown, red or green pencil, or a date typed by an IRS employee or a cash register stamp date, etc.

3.0.273.31.1  (01-01-2009)
Correspondence Received Date (CRD)

  1. A Correspondence Received Date (CRD) will be determined from the date the reply was received in the submission processing site. If the reply was not date stamped, the U.S. Postal Service postmark date on the envelope attached to the reply is used. Do not change original received date, but also enter CRD. The CRD will be entered EXCEPT in the following situations:

    • The original received date was prior to October 4, 1982;

    • The correspondence reply was received prior to the due date of the return;

    • The correspondence was required because of an IRS processing error, such as a request for a return or schedule that we lost during processing; or,

    • The correspondence was not necessary (issued in error).

  2. When correspondence conditions are identified which were not included when the first correspondence was issued, the document is processed using "no reply" procedures.

  3. When the taxpayer does not provide all requested information or the return comes back "undeliverable," there are charts provided in specific handbooks for "no reply" action.

3.0.273.31.2  (01-01-2009)
Business Master File (BMF) No Reply, Incomplete or Undeliverable

  1. If no reply, incomplete reply or the correspondence was undeliverable, a "9" is entered in the correspondence received date. Entering the "9" establishes a condition on the master file to suppress credit interest.

  2. If a return is received with a missing Employer Identification Number (EIN) and Entity has completed research, the date from the lower left corner of page 1 of the return (stamped by the Entity section) is entered as the CRD if the date is after the due date of the return.

  3. If the return was sent to Entity, but no annotation is on the front of the return, no action is necessary.

3.0.273.32  (01-01-2009)
Discovered Remittance/Control of Remittances Found During Processing Operations

  1. Cash and non-cash remittances found during processing after the mail opening operation are "discovered remittances."

  2. All discovered remittances must be delivered to or picked up by an appropriate designated employee of the Deposit function at least once a day. Those remittances not delivered immediately upon discovery are to be held in locked containers. The container must have slots for insertion of material. The only keys to the container are to be kept by a designated Deposit function employee.

  3. For internal security and control, the supervisor will prepare Form 4287, Record of Discovered Remittances, in duplicate.


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