Partnerships and S Corporations use Form 8752, Required Payment or Refund under Section 7519, to figure and report the payment required under Section 7519 or to obtain a refund of net prior year payments.

Document Perfection codes and edits (perfects) returns and documents for input to Master File (MF) through the Integrated Submission and Remittance Processing System (ISRP) and the Service Center Recognition Image Processing System (SCRIPS).

Document Perfection routes documents and attachments not related to return processing to the responsible function.

It is not the purpose of Code and Edit to mathematically verify or to check the validity of the returns and other documents being processed unless otherwise specified in the applicable section.

Authority for these procedures is found in Internal Revenue Code Section 7519 and corresponding Treasury Regulations.

Policy Statements for Submission Processing are found in IRM 1.2.1, Servicewide Policies and Authorities, Servicewide Policy Statements.

Submission Processing (SP), Return Processing Branch (RPB), BMF Code and Edit (C&E) and Error Resolution System (ERS) Section is responsible for the content in this IRM. The BMF Code and Edit analyst makes updates as needed and revises content once a year effective January 1st of each calendar year.

The BMF Code and Edit and Error Resolution System Section manager ensures the IRM is timely submitted to Publishing each year.

The Campus Director monitors operational performance for the Submission Processing campus.

The Operations Manager monitors operational performance for their operation.

The Team Manager/Lead monitors performance and ensures employees have the tools to perform their duties.

The Team Employees follow the instructions in this IRM and keep updated on the IRM procedures.

Program Goals: Make sure Form 8752, Required Payment or Refund under Section 7519, is code and edit ready for transcription.

Program Reports: The Batch Block Tracking System (BBTS) captures and stores a vast amount of data, which can be used in performance monitoring and production projections.

Program Effectiveness: The program goals are measured by using the following tools:

Annual Review: The processes outlined in this IRM are reviewed annually during IRM Review and Clearance to ensure they are accurate and promote consistent tax administration.

Quality Review conducts a statistical valid sample size review of completed work to ensure IRM guidelines are followed.

The following table defines terms that appear throughout this IRM section:

See Exhibit 3.11.249-2, Acronyms and Abbreviations, for a list of commonly used acronyms and abbreviations that appear throughout this IRM section.

These resources may help in performing the work as outlined in this IRM.

The instructions in this section pertain to the coding and editing of Form 8752, Required Payment or Refund Under Section 7519, that will be input to the Business Master File (BMF).

General instructions are provided to eliminate the repetition of the same instructions for the specific return. If there is a conflict between the general instructions and the specific instructions, the specific instructions will prevail.

This manual is your main source of information. You can also find procedures in the following IRMs:

IRM 3.11.249 is exempt from the BMF Consistency Guidelines (for example, indicating diamonds) as shown in other sections of IRM 3.11, Returns and Documents Analysis.

The instructions in this section are for coding and editing of Form 8752, Required Payment or Refund Under Section 7519. Form 8752 will be filed by partnerships and S Corporations who have elected to file their income tax returns on a tax year other than the required year. The Form 8752 is used to remit the required payment. It will be posted to the BMF as Master File Tax (MFT) Code 15, Document Code 23 and Tax Class 2. Time will be charged to Program 19000 (Other BMF Returns) and Program 19001 (Refunds).

Form 1065, U.S. Return of Partnership Income, and Form 1120-S, U.S. Income Tax Return for an S Corporation, use Form 8752 to figure and report the payment required under Section 7519 or to obtain a refund of net prior year payment(s). A partnership (Form 1065) or S Corporation (Form 1120-S) must file Form 8752 if it made an Internal Revenue Code (IRC) 444 election by filing Form 8716, Election To Have A Tax Year Other Than a Required Tax Year, and its election is still in effect for the tax year. Any tax year that has an IRC 444 election in effect is an "applicable election year." Prior to 1990, the IRC 444 payment made by these taxpayers was reported on Form 720, Quarterly Federal Excise Tax Return.

For applicable election years, Form 8752 must be filed and the required payment made on or before May 15 of the year following the calendar year in which the applicable election year begins. The required payment is intended to represent the value of the tax deferral by the owners of those entities using a taxable year other than the required year. Generally, for an S corporation, the tax year resulting from an IRC 444 election is a Fiscal Year (FY) ending in September, October or November. A partnership's tax year may differ and depends on the tax year of the partners. The required payment is considered a deposit.

Submit IRM deviations in writing following instructions from IRM 1.11.2.2.3, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate, that helps taxpayers and protects taxpayer rights. TAS offers free help to taxpayers when a tax problem is causing a financial difficulty, when they’ve tried and been unable to resolve their issue with the IRS, or when they believe an IRS system, process, or procedure just isn't working as it should. TAS strives to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.

TAS uses Form 12412, Operations Assistance Request (OAR), to start the OAR process of referring a case to the Taxpayer Services (TS) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19, Taxpayer Advocate Service, Taxpayer Advocate Case Procedures, Advocating With Operations Assistance Requests (OARs).

Refer taxpayers to TAS when the contact meets TAS criteria or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps can't be taken to resolve the taxpayer's issue the same day. See IRM 21.1.3.18 , Taxpayer Advocate Service (TAS) Guidelines.

The definition of "same day resolution" is within 24 hours. The following two situations meet the definition of "same day resolution" :

When making a TAS referral, use Form 911, and forward it to TAS following your local procedures.

For more information, see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria and IRM 13.1.7.4 , Exceptions to Taxpayer Advocate Service Criteria, for information on cases that TAS will no longer accept.

BMF ID Theft is increasing. If a case is found with attachments or correspondence showing the taxpayer is a victim of "ID Theft" (IDT), give the entire case to the manager/lead.

The manager/lead will expedite the case to the Planning and Analysis (P&A) staff for referral to one of the Submission Processing (SP) BMF ID Theft liaisons. The taxpayer must show that they are a victim of "ID Theft" ; do not send cases that are subject to Criminal Investigation (CI), Examination (Exam), or Fraud review.

Businesses use frivolous arguments to express dissatisfaction with the substance, form or administration of the tax laws by trying to avoid or reduce tax liabilities illegally. See IRM 25.25.10, Frivolous Return Program, and Exhibit 3.11.249-3, Potential Frivolous Arguments for Examination Review, for a list of recognized frivolous arguments made by businesses.

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

Do not consider the following returns as frivolous, unless there is other evidence of a frivolous argument:

The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA98), Section 3705(a) provides identification requirements for all IRS employees working on tax-related matters.

All IRS employees who communicate by telephone, face-to-face, or any other method of correspondence with taxpayers or their representatives on tax-related matters must give (at a minimum) the following information:

When a taxpayer requests to speak with a specific employee who previously worked their inquiry or request, or complains about the level of service previously given, make every attempt to resolve the taxpayer's inquiry. If unable to resolve the issue, refer the inquiry using established procedures to the manager.

Secretaries, receptionists, or other people who answer the telephone in functional offices need to identify themselves. They should provide their badge identification (ID Card) number only if they are answering telephones which are routinely used to give tax or account information.

It is not necessary to repeat the badge identification (ID Card) number on a subsequent contact, when the nature of an employee's work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either by telephone or in-person) their badge identification (ID Card) number on the first contact.

Criminal Investigation (CI) investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC include willful attempts to evade or defeat the income tax. Criminal tax violations also include the willful failure to collect or pay over tax and false claims for refunds based on bogus return information.

If CI has stamped the return, do not send for further CI action.

For returns with refund claims ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ do the following:

Because of the repetitive nature of the Code and Edit (C&E) function, C&E Tax Examining technicians often recognize income tax return data that is outside of the norm for data found on similar returns for each income tax return type. If C&E finds return characteristics not meeting Audit Code or Exam referral criteria it deems suspicious, CI is available to review the referral.

If a suspicious return is found, do the following:

If the return fits other criteria (e.g., Frivolous Argument), take proper action.

The primary goal in identifying tax returns for examination is to promote the highest degree of voluntary compliance. Examination gives support and helps Submission Processing (SP) with any questionable return found during processing. Exam has many programs and tolerance criteria already found in several IRM sections. SP can refer any questionable return to Exam, unless prohibited by instructions currently found in several IRMs.

For returns completed in other than U.S. currency, process as filed. However, if corresponding for missing/incomplete item(s), include in the letter (e.g., 3463C, 118C) to resubmit return in U.S. currency.

Each block of documents processed under the Automated Data Processing (ADP) system must have a Block Control Document attached for control and identification purposes. If blocks, or unblocked documents which should have been blocked, are received without a Block Control Document, return the block to the originating area for correction. The Block Control Documents are as follows:

Form 813, Document Register, is used with remittance (W/R) documents.

Form 1332, Block and Selection Record, is used for non-remittance (N/R) documents. The Form 1332, Block and Selection Record, is also used for returns processed through the Residual Remittance Processing System (RRPS). These returns are considered non-remittance returns since the payments have been posted to the Business Master File (BMF) to provide a fact of filing.

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

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.

This section has descriptions and functions of the Document Locator Number (DLN), blocking returns and documents, and document count.

Enter all edit marks on a document being input to the Automated Data Processing (ADP) system with brown, orange, red, green or purple pencil/pen unless a specified instruction requires another type of marking.

Edit any misplaced or illegible transcription entry to the proper transcription line. Use an arrow if it will leave no room for doubt as to where the entry belongs.

Form 8752, Required Payment or Refund Under Section 7519, must be edited for dollars and cents.

Edit marks are edited on the return for transcription to the Automated Data Processing (ADP) system through the Integrated Submission and Remittance Processing (ISRP) system. Enter edit marks in brown, red, orange, purple, or green pencil or pen.

Only edit items on the return that are for transcription except where specific instructions require editing of a non-transcribed item. Leave lines blank if the entry would be a zero amount unless otherwise instructed.

Do not obliterate, alter, or erase the original entry on a return when deleting or correcting an entry. Always exercise care to ensure that the original entry remains legible. Perfected entries provide a legible "edit trail" for anyone who may work with the return later.

Do not re-edit edit marks entered by other areas, such as Collections, Entity or Accounts Management, except to place the marks in the correct area or perfect for legibility.

Photocopied Returns - Re-edit or underline any valid, black edit marks. See IRM 3.11.249.6.3, Correspondence Imaging Inventory (CII) Returns, and IRM 3.11.249.3.1, Block Control Documents.

For a description of specific edit marks, see the table below:

Review all attachments to the return before the return can be considered processable.

Follow the general guidelines in the Routing Guide for Attachments Table below for each attachment.

Other Unrelated Attachments - Remove other unrelated attachments from the document being processed, route using a Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip to the correct function for the necessary action, and edit an action trail in the lower left corner going vertically up the side of the return. On the Form 4227, include the following identifying information:

If the taxpayer writes the information on the return, photocopy the data and route to the correct function using a Form 4227 or other proper routing slip.

If an attachment should be removed because most of the information is unrelated to the document being processed, photocopy the applicable data needed to process the document under examination and attach to the document being processed.

Remittance Attached - Immediately give to your manager. The manager should follow the instructions in IRM 3.8.46, Deposit Activity - Discovered Remittance.

If an attachment shows that the taxpayer has included a tax payment for more than one tax period, take the following action:

If the taxpayer files a return for the purpose of submitting a subsequent payment or did not include the payment with the original return, edit CCC "U." Prepare Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip and notate on Form 4227, "Research - Missed or Subsequent Payment." Rejects will research to determine if the original return posted and if the payment was subsequent or missed.

Correspondence is all written communications from a taxpayer or their representative, excluding tax returns, whether solicited or unsolicited. This includes:

The key to identifying taxpayer's correspondence is to ask the following questions:

Issue correspondence to resolve any conditions causing the return to be unworkable or unprocessable.

If the return is incomplete and doesn't appear to be a return meant for filing or is a conduit for providing information (e.g., shows "payment only" ), give the return to the lead. The lead must determine the correct course of action. The lead researches for a Transaction Code (TC) 150 and any other information necessary to determine if the return should continue processing, is an amended return, or must be routed to another function. An incomplete return could include any of the following:

Examine the return for all unprocessable conditions before initiating correspondence.

Below are letters which are provided by Headquarters for Submission Processing (SP) Campus use in corresponding for items listed in this IRM. It is expected that tax examiners or their supervisors (or delegates) will have access to and be familiar with the Submission Processing Campus Correspondex for selection of correct letters. This list is not all-inclusive.

Correspondence Imaging Inventory (CII) is an inventory system for scanning all Accounts Management (AM) receipts into digital images and working the cases from those images.

CII returns show a "CII Image - Do not correspond for Signature" stamped below the signature line or a "CII" annotation on the front of the return.

Verify all edit marks and ensure placement is correct on a CII return.

Follow the correspondence instructions below for processing CII returns.

Taxpayers may send tax return information via fax as part of return perfection even when submitting a signature. In circumstances where contact with the taxpayer was made and documented, faxed signatures are acceptable.

Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to decide which method of contact to use.

Indicate the fax paragraph on the approved Correspondence Action Sheet to inform the taxpayer of the fax options.

Use the following resources to ensure you are speaking with the taxpayer or authorized representative before disclosing any tax information:

Before leaving any messages on a taxpayer's answering machine, review the following:

If a signature is missing, correspond:

The Preparer Tax Identification Number (PTIN) is to the right of the Preparer's Signature in the PTIN box at the bottom right corner of Form 8752.

No action is required on amended returns.

The valid PTIN begins with the alpha "P" followed by an eight-digit number (e.g., PXXXXXXXX). Circle the PTIN if it is invalid, all zeros or all nines.

The Preparer's Social Security Number (SSN) is a nine-digit number. Circle the SSN if invalid, all zeros or all nines.

The Firm's EIN is below the Preparer's PTIN box at the bottom right corner of Form 8752.

No action is required on amended returns.

The Firm's EIN is a nine-digit number. Circle the EIN if it is invalid, all zeroes or all nines.

The Preparer's Phone Number is below the Firm's EIN at the bottom right corner of Form 8752.

Even though a return may be considered valid for filing and timeliness purposes, it may not be processable. It is unprocessable if:

A return must contain specific items before it is considered processable. Examine schedules and other attachments for the information necessary to make the document processable and enter on the applicable return. The specific items needed are:

Returns with unresolved entity problems should be routed to Entity Control for research.

If the return has multiple EINs, an EIN that is missing, "Applied for" , "Pending" , etc., see IRM 3.11.249.10.2, Entity Perfection - Employer Identification Number (EIN).

If the name is illegible on the return, see IRM 3.11.249.10.3, Entity Perfection - Name Control.

For other unprocessable conditions, initiate correspondence if you have a name and address and research can't resolve the issue.

Route unprocessable returns to the Correspondence Unit using a Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip for the HOLD FILE for the following reasons:

Do not send the following unprocessable returns to the HOLD FILE:

When a signed perjury (declaration) is received, attach it to the return.

Complete the return based on the information submitted by the taxpayer.

If an IRS letter is attached which bears an IRS Received Date stamp band and there is no date stamp on the return, edit the date (as stamped on the attachment) on the return.

If two received dates are on the return, circle the original (earliest) received date, if it was not previously circled.

Only one correspondence attempt is required. If a reply is not received after the prescribed suspense period, prepare Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip notating that the taxpayer did not reply to correspondence for Form 8752, Required Payment or Refund Under Section 7519. Route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal, to determine Section 444 election.

Edit CCC "X" on an overpaid return. Do not change the received date.

Reject a document for the following reasons:

Prepare Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip. Write the reason for rejection and attach the form to the face of the document immediately under the entity data for the following:

Send blocked and numbered documents that have been coded and edited to Data Conversion for transcribing.

Unnumbered documents that have been coded and edited will be sent to Receipt and Control for blocking and numbering.

Documents leaving the campus will be sent to Receipt and Control for shipment. Prepare Form 4227, Intra-SC Reject or Routing Slip, or other proper routing slip with applicable routing instructions.

Documents not leaving the campus will be sent to the correct function in the campus for the required action. This includes items detached from documents to be processed that require correspondence, accounting, or other action. See IRM 3.11.249.5.2 (1), Other Unrelated Attachments, for preparation of Form 4227, Intra-SC Reject or Routing Slip.

The entity of a tax return identifies the taxpayer on the Business Master File. The entity area of the return has the following:

The EIN is a nine-digit number (XX-XXXXXXX) assigned to identify the Form 8752, Required Payment or Refund Under Section 7519.

The EIN is to the right of the Name field in the entity area of the return.

Determine the EIN as follows:

Figure 3.11.249-2

Figure illustrates an example of a Form 8752 entity information with a partial Employer Identification Number (EIN) and a Form 4227, Intra-SC Routing and Reject Slip, for routing to Entity Control. The Form 8752 has a handwritten entity. First line on the form is the Name of the company. Code and Edit edited a red line under Magn to identify the Name Control. If unable to locate EIN, route to Entity Control using Form 4227.Form 8752 has the following lines and fields completed:Name of partnership or S corporation: Magnolia & Beech Corp.Employer identification number: 00-891647Number, street, and room or suite no. If a P.O. box, see instructions: 1815 E. 38th St.City or town, state or province, country, and ZIP or foreign postal code: Baltimore, MD 21233Form 4227, Intra-SC Reject or Routing Slip, has the following fields completed: Name-Unit: T. Pine PDP:U6Date: 5-14-25Route to: Entity Control (red X in box)BMF: red X in boxOther (explain): Partial EIN - Unable to Locate On IDRS (red X in box)

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New EIN assigned - If the return was given a new EIN by Entity Control, underline the Name Control. No further editing of the entity data is necessary. See Figure 3.11.249-3, Form 8752 Illustrating EIN Assigned by Entity Control.

Figure 3.11.249-3

Figures illustrates a Form 8752 with an EIN assigned (handwritten) by Entity Control. The Form 8752 has a handwritten entity. First line on the form is the Name of the company. Code and Edit edited a red line under Magn to identify the Name Control. Entity Control has assigned (handwritten) an EIN.Form 8752 has the following fields and lines completed:Name of partnership or S corporation: Magnolia & Beech 00-8916473 with a text box arrowed to the EIN that reads: EIN assigned by ENTITY Employer identification number: Blank by taxpayerNumber, street, and room or suite no. If a P.O. box, see instructions: 1815 E 38th StCity or town, state or province, country, and ZIP or foreign postal code: Baltimore, MD 21233Box A: Check applicable box to show how entity is classified for federal income tax purposes: (1) Partnership (X shown in box)

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Returns with attachments or statements for the following conditions should be routed to Entity Control using Form 13934, Entity Document/C&E Merge Transmittal.

The Name Control consists of four characters or less:

See Document 7071-A, BMF Name Control Job Aid - For Use Outside the Entity Area, to determine the Name Control.

You must determine the type of entity present on the return because the type of entity determines the Name Control procedures you must use.

Edit the Name Control as follows:

An "In-Care-Of" name can be identified by the words "In-Care-Of" , or the symbols "c/o" or "%" (percent).

Ensure the "In-Care-Of" name is in the proper location:

Determine a change in the in-care-of name by any of the following:

Perfection of the address is necessary when the mailing address (Street or Post Office (PO) Box) is not easily identified.

A business may have two addresses. One is the mailing address and the other is the location address or physical location of the business.

Perfect the address as follows:

Always circle the "In-Care-Of" symbol ("c/o" or "%" ) if it is present with an address. Do not use the ampersand (&) or the percent sign (%) when editing address information.

The U.S. Postal Service (USPS) established new address requirements for Army Post Office (APO), Diplomatic Post Office (DPO), and Fleet Post Office (FPO) addresses. If the old address appears, convert to the new state code abbreviation based on the ZIP Code (e.g., APO New York, NY 091XX would be converted to APO AE 091XX). Consider APO/DPO/FPO addresses as domestic addresses. Refer to conversion table below:

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

Consider returns with Army Post Office (APO)/Diplomatic Post Office (DPO)/Fleet Post Office (FPO) addresses as domestic addresses.

Route returns with a foreign or an American Possession address to the Ogden Submission Processing Campus (OSPC) for processing. Prepare Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform the taxpayer the IRS sent the return to OSPC.

Consider returns with addresses in the following U.S. Possessions/Territories as foreign for processing purposes. Edit the same way as domestic addresses.

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

A ZIP Code or state 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.

To help Compliance with workload assignment, returns filed with an address in Canada will be edited using a unique country code based on the province/territory.

The rest of the foreign address is edited using procedures in IRM 3.11.249.10.6, Entity Perfection - Foreign Addresses.

Do not edit the tax period if the current year form is used unless the taxpayer shows on the top of the return that this is not a current year return (e.g., shows a prior year). Programming automatically inserts the current year when there is no Integrated Submission and Remittance Processing (ISRP) entry and verifies the correct tax rate was used on Line 9a. Generally, Form 8752, Required Payment or Refund Under Section 7519, filers must be for a calendar year.

The tax period for all prior year returns must be edited. Edit the tax period under the title of the form in YYMM format.

If a prior year form is submitted and the taxpayer does not show the tax period, edit "2312" under the title of the form, except when you receive multiple Forms 8752 from the same entity. See Figure 3.11.249-4, Editing of a Prior Year Form 8752.

Figure 3.11.249-4

Figure illustrates an example of a prior year version of Form 8752 without any indication by the taxpayer that the return is for a prior tax year. Code and Edit edited the tax year in red and underlined the first four characters of the name of the company (Caro) in red to show the Name Control.Form 8752 has the following fields completed:Document Locator Number (in the top right corner of Form 8752): 00223-105-50000-5For the required payment computed using the next income from the base year ending 2312 (edited in red), 2023Name of partnership or S corporation: Carol C. Poplar Inc.Employer identification number: 00-7405212Number, street, and room or suite no. If a P.O. box, see instructions: 2112 E. Alder LaneCity or town, state or province, country, and ZIP or foreign postal code: Atlanta, GA 30304Box A: Check applicable box to show how entity is classified for federal income tax purposes: (1) Partnership (X shown in box)Box B: Text box reads: If a prior year form is submitted and the taxpayer does not show an election year, edit 2312 under the title of the form, except when receiving multiple Forms 8752.Received date stamp in middle of the return: 04142025 (Note to IRM Author only: Check Emancipation Day in DC)Line 1: Net income for base year. 300,000.00Line 2: Applicable payments made during base year. 250,000.00Line 3: Deferral ration. Divide the number of months in the deferral period by 12 and enter the result as a percentage. Carry out your answer to at least the nearest tenth of a percent. 25%Line 4: Line 1 deferred amount. Multiply line 1 by line 3. 75,000.00Line 5: Line 2 deferred amount. Multiply line 2 by line 3. Caution. If the entity had a short base year, skip lines 5 and 6 and go to line 7. 62,500.00

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If multiple Forms 8752 from the same entity using the current year form are received, try to find out the correct tax period to edit. Look at the "applicable election year beginning and ending" . Make the latest "ending period" the current calendar year and edit prior year tax periods in descending order as can be best determined. See Figure 3.11.249-5, Multiple Forms 8752 from Same Entity with Current Year Form.

If a Form 8752 is received for a future tax period (e.g., if the tax period ending is after the current processing date), follow instructions below:

Figure 3.11.249-5

Figure illustrates an example of a current-year version of Form 8752 filed by the same entity for multiple tax years. There are three Forms 8752 with the entity information shown.Form 8752 (first form) has the following fields and lines completed:For the required payment computed using the next income from the base year ending _8-31-22_. Edited in red by Code and Edit to the left of the preprinted tax year of the form: 2212Name of partnership or S corporation: Ashley Cypress & Justin C. Hemlock, Ptrs. Cypr is underlined in red to show the Name Control.Employer identification number: 00-1105793Number, street, and room or suite no. If a P.O. box, see instructions line: 11510 N. Tupelo Ave.City or town, state or province, country, and ZIP or foreign postal code: New Orleans, LA 70113Box A: Check applicable box to show how entity is classified for federal income tax purposes: (1) Partnership (X shown in box)Form 8752 (second form) has the following fields and lines completed:For the required payment computed using the next income from the base year ending 8-31-23. Edited in red by Code and Edit to the left of the preprinted tax year of the form: 2312Name of partnership or S corporation: Ashley Cypress & Justin C. Hemlock, Ptrs. Cypr is underlined in red to show the Name Control.Employer identification number: 00-1105793Number, street, and room or suite no. If a P.O. box, see instructions: 11510 N. Tupelo Ave.City or town, state or province, country, and ZIP or foreign postal code: New Orleans, LA 70113Box A: Check applicable box to show how entity is classified for federal income tax purposes: (1) Partnership (X shown in box)Form 8752 (third form) has the following fields and lines completed:For the required payment computed using the next income from the base year ending 8-31-2024Text box pointing to the tax year ending that reads: TAX PERIOD EDITING NOT REQUIREDName of partnership or S corporation: Ashley Cypress & Justin C. Hemlock, Ptrs. Cypr is underlined in red to show the Name Control.Employer identification number: 00-1105793Number, street, and room or suite no. If a P.O. box, see instructions: 11510 N. Tupelo Ave.City or town, state or province, country, and ZIP or foreign postal code: New Orleans, LA 70113Box A: Check applicable box to show how entity is classified for federal income tax purposes: (1) Partnership (X shown in box)

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Editing the Centralized Authorization File (CAF) code is no longer required.

The CAF has the type of authorization that taxpayers give to representatives regarding the taxpayers' accounts. Representatives may submit Form 2848, Power of Attorney (POA) and Declaration of Representative, or Form 8821, Tax Information Authorization (TIA).

Edit CCC "F" when the taxpayer gives a positive indication that they are not liable for filing future returns. Notations such as (but not limited to) the following:

A return is considered Amended based on the following:

Examine the return for attachments.

Determine if Computer Condition Code (CCC) "G" should be edited:

The following data must be edited on all Amended returns:

Do not edit CCC "G" if the taxpayer clearly shows that the return is used to submit a subsequent payment or did not include the payment with the original return filed.

Computer Condition Code (CCC) "O" is edited when a Manual Refund will be issued and a Form 3753, Manual Refund Posting Voucher, Form 5792, Request for IDRS Generated Refund (IGR), or Form 12857, Refund Transfer Posting Voucher, is attached. Verify that the Name Control, EIN, and tax period on the return is the same as the information on the attached form.

When editing CCC "O" , research Integrated Data Retrieval System (IDRS) to determine if a manual refund, Transaction Code (TC) 840 has posted:

A Manual Refund will be issued when the refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Unprocessable Return. Edit this code when the return is too incomplete or illegible for processing. When CCC "U" is edited, continue perfecting the return to the extent possible. See IRM 3.11.249.9, Unprocessable Procedures, for more information.

Edit CCC "U" on misblocked and non-Automated Data Processing (ADP) returns.

Edit CCC "W" when the return processing date is two years and nine months after the return due date or received date, whichever is later.

Edit CCC "W" if the return is stamped "Cleared by Statute."

Form 8752, Required Payment or Refund Under Section 7519, is considered a required deposit by the taxpayer and not a payment of tax due.

On no reply cases for a signature, edit CCC "X" on refund returns. This freezes the release of an overpayment (e.g., freezes the module from refunding or offsetting credit out) at Master File.

With other BMF returns, the "X" freeze may permit the IRS to comply with the taxpayer's request to transfer a part of the refund applied to another account.

Accept the taxpayer's amount. Exception:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"X" the entry and edit zero (0).

Accept the taxpayer's amount. Exception:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"X" the entry and edit zero (0).

Edit a three-digit code (Deferral Ratio) for the allowable deferral percentage on the dotted part of Line 3 to the left of the taxpayer's entry. There are eleven codes. These codes represent deferrals of one to eleven months (e.g., with "083" representing a deferral of one month and "917" for a deferral of eleven months, respectively) and are shown in the table below, which assumes that the taxpayer's required year is the calendar year.

The "Deferral Ratio" is the three-digit code representing the allowable deferral percentage for the taxpayer's deferral period. The "Deferral Period" means the number of months that occur between the last day of the elected tax year and the last day of the required tax year.

Generally, the deferral percentage will not exceed 25% (percent). S corporations and partnerships existing before 1986 were permitted to make an IRC 444 election and keep their old taxable year even if the deferral period was more than three months. If the taxpayer claims an amount greater than 25% (percent), but less than 91.7% (percent), accept taxpayer's amount. If the taxpayer claims more than 91.7% (percent), allow only 91.7% (percent).

The taxpayer may either round the percentage (e.g., show 8% (percent) or 17% (percent) or 67%(percent , rather than 8.3% (percent) or 16.7% (percent) or 66.67% (percent)), or carry the percentage to multiple places (8.33% (percent) or 16.67% (percent) or 66.67% (percent)). In either case, you will edit "083" or "167" or "667."

If the taxpayer enters a percentage that does not approximate the allowable percentages, edit the acceptable code that is:

If the taxpayer enters a deferral ratio in the form of a decimal rather than a percentage, convert to a percentage.

If the deferral ratio or deferral period (Line 3) can't be determined from the information provided on the return and attachments (e.g., Line 4 amount divided by Line 1 amount equals Line 3), then correspond using proper letter. Edit the correct code based on the taxpayer's response. If there is no response, route to Entity Control to determine the correct deferral period.

If the taxpayer checked the box on Line B (which reads, "If this is the entity's first tax year, skip lines 1 through 10, enter -0- on line 11, and check this box" ), then no editing of an entry to the left on Line 3 is necessary. Line B is the second line item located immediately beneath the entity part of Form 8752.

If the taxpayer checked the box on Line C (which reads, "If this form is being filed to claim a full refund of the net required payment balance because of a terminating event, skip lines 1 through 9a, enter -0- on line 9b, complete lines 10 - 12, and check this box" ), then no editing of an entry to the left of Line 3 is necessary. Line C is the third line item located immediately beneath the entity part of Form 8752. Computer Condition Code (CCC) "F" may be needed. See IRM 3.11.249.12.1, Computer Condition Code "F" - Final Return, for more information.

Line 4 is the result of multiplying Lines 1 and 3. Accept the taxpayer's amount.

Line 5 is the result of multiplying Lines 2 and 3. Accept the taxpayer's amount.

Accept the taxpayer's amount.

Line 7 can be the result of:

Accept the taxpayer's amount.

Line 8 can be the result of:

Accept the taxpayer's amount.

Line 9a is the result of multiplying Line 8 by the applicable tax rate. Accept the taxpayer's amount.

Line 9b will be either the amount shown on Line 9a or $0, which is the result of multiplying Line 8 by the applicable tax rate.

Accept the taxpayer's amount.

The required payment is intended to represent the value of the tax deferral by the owners of those entities using a taxable year other than the required year. Generally, the tax year is a Fiscal Year (FY) ending in September, October or November. The required payment is considered a deposit.

Accept the taxpayer's amount.

There will be an amount on Line 11 when Line 9b is greater than Line 10.

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ put the refund/balance due amount on the wrong line or on both. In that case, "X" out the amount placed on the wrong line or place the amount on the correct line.

There will be an amount on Line 12 when Line 10 is greater than Line 9b.

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ put the refund/balance due amount on the wrong line or on both. In that case, "X" out the amount placed on the wrong line or place the amount on the correct line.

High Dollar Refunds:

If Line 12 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8302, Electronic Deposit of Tax Refund of $1 Million or More, is attached, follow the instructions in (3) a. above. Do not detachForm 8302.

Credit interest will not generate on any Form 8752 refund of any amount at any time. Per Treasury Regulation 1.7519-2T(a)(6)(iii), interest is not allowed with respect to any refund of a required payment claimed on Form 8752. Credit interest can't be input under any circumstance, including where the IRS actions have delayed the issuance of the refund.

A manual refund on a Form 8752 will only be done if the refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

The 45-Day Jeopardy rules do not apply to Form 8752, Required Payment or Refund Under Section 7519.

Special to prior year returns - If the taxpayer files prior year returns and the payment(s) posts to oneForm 8752, Required Payment or Refund Under Section 7519, tax period module, initiate Accounts Management (AM) action to move the money to the correct tax period(s):

Do not move money to another type of tax module (e.g., Form 1120-S).

Edit CCC "W" when the return processing date is two years and nine months after the return due date or received date, whichever is later.

Edit CCC "W" if the return is stamped "Cleared by Statute."

Form 8752, Required Payment or Refund Under Section 7519, is considered a required deposit by the taxpayer and not a payment of tax due.

See IRM 3.11.249.12.2, Computer Condition Code "G" - Amended Return, for instructions for processing an amended Form 8752, Required Payment or Refund Under Section 7519.

Non-taxable returns with no line entries usually involve the following returns:

If the return has an address outside of the 50 states and the District of Columbia (APO, DPO or FPO address is not considered foreign), follow the procedures below.

OSPC only - See IRM 3.11.249.10.6, Entity Perfection - Foreign Addresses, for more information and continue processing the return.

Compliance functions (Collection and Examination) secure returns from the taxpayer and prepare returns if the taxpayer does not provide them.