The purpose of Document Perfection is to code and edit (perfect) returns and other documents for input through the Integrated Submission and Remittance Processing System (ISRP). In addition, Document Perfection forwards any other documents or attachments not related to the processing of the returns to the function responsible for handling them. 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 the following sections of the Internal Revenue Code (IRC) and their corresponding Treasury Regulations:

The Director monitors operational performance for the Submission Processing Campus.

The Operations Manager monitors operational performance for their operation.

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

The Team Employees follows the instructions contained in the IRM and maintain updated IRM procedures.

Program Goals

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. System control reports are on the Control-D WebAccess (CTDWA) and a general listing of the reports are located in IRM 3.12.38, Error Resolution, BMF General Instructions.

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

Annual Review: The processes outlined in this IRM must be reviewed annually to ensure accuracy and promote consistent tax administration.

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

An acronym is a word formed from the initial letter or letters of each of the successive parts or major parts of a compound term such as IDRS for Integrated Data Retrieval System.

Acronyms used in this IRM will be identified and explained in each subsection. After the acronym is identified and explained then only the acronym will be used throughout the rest of the subsection. Some acronyms are used universally throughout the IRS and identifying and explaining these in multiple subsections would be unnecessary. Some examples of these universal acronyms are IRM, IRC, and IDRS.

The following is a list of acronyms used throughout this IRM:

The following is a list of some of the resources available to help in performing the work as outlined in this IRM:

This IRM cannot address every possibility that may arise while perfecting returns or documents. Taxpayer intent must be taken into consideration. In some cases, it may be necessary to refer the issue to your subject matter expert (SME), lead and/or manager to determine the proper corrective action.

The purpose of Code and Edit is to code and edit (perfect) returns and other documents to make them processable for transcription. This is necessary to input these items to the Integrated Submission and Remittance Processing (ISRP) system.

Another purpose is to ensure that necessary action is taken on all attachments to the return, including preparation of other documents and initiating taxpayer correspondence when necessary to perfect the return.

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. The computer and/or Error Correction (Resolution) will perform these functions if the returns and other documents are coded and edited as prescribed in the applicable subsections of this section.

The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Code and Edit (C&E) processing IRMs.

Ogden, Kansas City, and Paper Processing Branch, BMF Code and Edit and Error Resolution System (ERS) identified and developed topics for BMF Consistency.

A ♦ (diamond) before and after the subsection title shows BMF Consistency subsections.

Text in normal print is the common process for BMF returns. The text in BOLD print is form specific and applies to this IRM only.

Submit IRM deviations in writing following instructions from IRM 1.11.2.2.4, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

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.

The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate. Its job is to protect taxpayers’ rights by striving to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights (TBOR). TAS offers free help to taxpayers, including when taxpayers face financial difficulties due to an IRS problem, when they are unable to resolve tax problems they haven’t been able to resolve on their own, or when they need assistance to address an IRS system, process, or procedure that is not functioning as it should. 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 initiate the OAR process of referring a case to the Wage and Investment (W&I) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19, TAS, 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 cannot be taken to resolve the taxpayer's issue the same day.

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 to TAS following your local procedures.

See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for more information.

BMF Identity (ID) Theft is increasing. If a case is found with attachments or correspondence showing the taxpayer is a victim of "ID Theft" , 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.

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

A frivolous argument is used to illegally avoid or reduce tax liabilities by expressing dissatisfaction with the substance, form or administration of the tax laws. Recognized frivolous arguments made by businesses include, but are not limited to, the examples in IRM 25.25.10, Frivolous Return Program (FRP), shown in Exhibit 3.11.23-10, Frivolous Return Criteria.

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 Centralized Authorization File (CAF) contains the type of authorization that taxpayers give to representatives about the taxpayer’s accounts. Representatives may submit Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization (TIA).

Any return with a received date that is two years and nine months or more after the Return Due Date is a potential statute control return.

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

If any of the conditions listed below are present, don’t route to Statute Control for clearance. Instead, edit CCC "W" and continue processing.

If a return has any of the following computer paragraphs (CPs) or letters attached, do not route to Statute Control for clearance. Edit CCC "W" if the return needs processing

If a return has a Form 12412, Operations Assistance Request (OAR), from TAS and is a potential statute control return but is not stamped "Cleared by Statute" , give it to the lead. The lead contacts the TAS employee listed on the OAR for rejection of the return and sends it back to TAS for clearance by the Statute Control.

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

Edit CCC "W" if the Statute Control stamps or shows clearance on the front of the return.

Follow the chart below to determine if CCC "W" is needed.

An amended return may be identified by such words as "Amended" , "Supplemental" (except Form 11-C), "Additional" , or any other positive indication that the taxpayer has filed previously. Filing a "Copy" of a return is not sufficient proof to label a return "Amended" unless accompanied by a positive statement from the taxpayer.

Form 720 (Amended) - Route Amended Form 720 to Centralized Excise Operation (CEO) at the following address:
Internal Revenue Service
Stop 5701G
7940 Kentucky Drive
Florence, KY 41042

Form 2290 has two check boxes for Amended Return and Vehicle Identification Number (VIN) Correction added under the entity area. If either or both of these two boxes are checked process the return as an Amended Return.

Examine the return for attachments.

Follow the instructions in the chart below when there is a sign of an amended return (Form 11-C, Form 730, and Form 2290).

The following data must be present or edited on all amended returns (Form 11-C, Form 730, and Form 2290):

If a Form 2290 is filed because of the following, edit CCC "G" :

The document locator number (DLN) is the basic identification number assigned to each document processed in the ISRP System. This number is assigned when the document is blocked and brought under Accounting Control.

It will be used to locate the document as long as it (or a substitute document) remains in the files, unless it becomes the subject of subsequent action. See Figure 3.11.23-2, How to Determine DLN.

Figure 3.11.23-2

A display of the DLN broken down into File Location Code, Tax Class, Document Code, Julian Date, Block Number, Serial Number, and Year Digit.

Please click here for the text description of the image.

On numbered blocks, compare the first return in the block to Form 813, Document Register, or Form 1332, Block and Selection Record.

All returns and documents to be input to the ISRP System are assembled into blocks of 100 documents or less before being numbered. A separate control is put on each block.

A document must not be taken out of a numbered block during the code and edit process. However, a document can be withdrawn from a batch before it is numbered. A document may be taken out of a batch when the return is unprocessable because of reasons specified in IRM 3.11.23.8, Unprocessable Returns.

The total number of returns in a numbered block is usually shown on the Form 813, Document Register, or Form 1332, Block and Selection Record, by a circled number for a partial block or blank for a full block of 100. If the block is a partial and the number is not shown then take the following actions:

Perfect all returns if possible. Examine schedules and other attachments for the information necessary to make the return processable. If an EIN is found on an attachment or schedule, edit to the correct area on the return.

Returns with unresolved entity problems must be routed to Entity Control function after utilization of Integrated Data Retrieval System (IDRS) research (includes CC NAMEE and INOLE).

On a numbered return with multiple EINs or SSNs, or illegible name, take the following action:

If the return is unnumbered, pull the return from the block and route the return to the Research function.

If the return is identified by the words "Copy Secured or Prepared by Examination" , see IRM 3.11.23.22.3, Examination Prepared.

Rejection action of excise tax returns.

Figure 3.11.23-4

Picture of Form 730 edited with CCC U and a completed Form 4227 attached.

Please click here for the text description of the image.

There are two types of correspondence that Code and Edit may encounter:

Only one correspondence attempt is required. If a reply is not received after the prescribed suspense period, input the return.

Figure 3.11.23-5

A picture of a no reply to correspondence Form 730 with CCC 3 edited.

Please click here for the text description of the image.

IRM 3.11.23.22.1, ♦IRC 6020(b) Prepared by Collections♦, and IRM 3.11.23.22.3, ♦Examination Prepared♦.

Conditions requiring correspondence and the suggested correspondence action are shown in the following tables:

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

No action is required.

The Paid Preparer Section is located below the signature area.

If the return indicates bankruptcy (e.g., shows RECEIVER, TRUSTEE, or DEBTOR IN POSSESSION) in the entity area or on an attachment, route to Entity Control. Follow local procedures using Form 13934, Entity Document/C&E Merge Transmittal.

Completely edit the return except the name control prior to routing to Entity Control.

The EIN is a nine-digit number (XX-XXXXXXX) assigned to identify the taxpayer.

Determine the EIN as follows:

The Name control consists of four characters or less.

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

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 that the "in-care-of" name is located in the proper location.

A change in the "in-care-of" name can be determined by any of the following:

Perfection of the address is necessary when the mailing address (Street or P.O. 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.

The procedures for perfection of addresses are as follows:

The USPS established new address requirements for APO/DPO/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). APO/DPO/FPO addresses are considered domestic addresses. Refer to APO/DPO/FPO conversion chart below:

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

Returns with APO, DPO, or FPO addresses are considered domestic addresses. See IRM 3.11.23.10.5, Entity Perfection - Domestic Address.

Excise Tax Returns with foreign addresses are worked at the Ogden Submission Processing Center (OSPC).

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.

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

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.

If the taxpayer enters the due date of the return instead of the tax period ending, perfect the Tax Period if it is a prior quarter return. Current returns do not require the tax period to be edited.

Prepare a dummy return for each Tax Year involved when more than one tax year is shown on a return.

On prior year returns (prior quarter), edit or underline the Tax Period.

The payment received with Form 720, Form 11-C, Form 730, Form 2290 or Form 2290(SP) processed by RPS, a Lockbox, or within a field office may be applied to an incorrect tax period.

For heavy highway motor vehicles used on public highways in July, Form 2290 and Form 2290(SP) must be filed by August 31.

For vehicles whose first use is in a later month, Form 2290 must be filed by the last day of the month following the month of the vehicle's first use.

For vehicles for which tax is suspended during the taxable period under the 5,000/7,500-mile exemption, an amended Form 2290 return is due, if the vehicle later exceeds the applicable mileage limit. The amended Form 2290 must be filed by the last day of the month following the month in which the vehicle's use exceeded the limit.

Form 2290 is often received with multiple received dates indicated on Page 2 and Schedule 1. Circle out the erroneous received dates on Page 2 in such a manner that the tax data is still legible for the ISRP function.

The IRS has developed a Memorandum of Understanding (MOU) with various state agencies that allow the agency to accept the Form 2290 and payment for the IRS on behalf of the taxpayer. This MOU is referred to as the Alternative Proof of Payment (APP) program. When a Form 2290 is received from a state Department of Motor Vehicles (DMV) treat the filing as if it is part of the APP program.

When the IRS has received a Form 2290 from a state agency participating in the APP program that accepts a Form 2290 from a taxpayer and mails the Form 2290 to IRS, the Form 2290 is not considered received until it has been received by the IRS. Use the date the IRS received the Form 2290 as the Received Date. See IRM 3.11.23.17.12.1, Form 2290 Alternative Proof of Payment Program, for more information.

"D" - Reasonable Cause for Failing to Pay Timely (All Excise Forms). CCC D will no longer be edited by Code and Edit tax examiners. If the taxpayer requests an abatement for Failing to Pay Timely when the return is submitted, send Letter 1382C, Penalty Removal Request Incomplete, which will inform the taxpayer of the proper procedure to follow to request abatement, if, and when a penalty is assessed. In the cases of a disaster, Code and Edit tax examiners will be provided with the coding procedures to follow.

"F" - Final Return (All Excise Forms) - Edit CCC F when the taxpayer checks the Final box and gives a positive indication that they are not liable for filing future returns. Notations such as (but not limited to):

Form 720:

Form 2290::

Refer to IRM 3.11.23.2.11, Amended Returns.

Edit CCC "J" when the return is late and Form 3198, Special Handling Notice for Examination Case Processing, or similar attachment indicating the return has been secured under IRC 4741-4784.2 is attached.

Otherwise, do not edit CCC "J" if the taxpayer requests an abatement for Failing to make timely deposits when the return is submitted. Instead, send Letter 1382C, Penalty Removal Request Incomplete, which will inform the taxpayer of the proper procedure to follow to request abatement, if, and when a penalty is assessed. In the cases of a disaster, Code and Edit tax examiners will be provided with the coding procedures to follow.

Edit CCC "L" if:

CCC "O" is entered when a pre-settlement manual refund will be made 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 data on the form. See Figure 3.11.23-14, CCC "O" - Module Freeze.

Figure 3.11.23-14

A display of the top portion of Form 720 with an attached Form 3753 and indication that a TC 840 manual refund has posted. CCC O is then edited to the correct area on the Form 720.

Please click here for the text description of the image.

If the taxpayer requests an abatement for Reasonable Cause for Failing to Timely File Return when the return is submitted, send Letter 1382C, Penalty Removal Request Incomplete, which will inform the taxpayer of the proper procedure to follow to request abatement, if, and when a penalty is assessed. In the cases of a disaster, Code and Edit tax examiners will be provided with the coding procedures to follow.

Edit CCC "R" with a Penalty and Interest (P/I) Code "1" only when the taxpayer has paid an amount for precomputed penalty or interest and the return was received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. The P/I Code is shown to the right of the Penalty and Interest box. See IRM 3.11.23.13, Taxpayer Reports Precomputed Penalty Interest.

Edit CCC "U" on any return that has an unprocessable condition.

Refer to IRM 3.11.23.2.10, Statute Returns.

Edit CCC "X" when the taxpayer requests any balance left over after paying tax and/or penalties to be applied to another tax module:

When an Abstract Number (IRS Number (No.)) is missing, and the amount is over $100.00, CCC "Z" sends a transcript to the Centralized Excise Operation for the Reports Analyst to determine the correct Abstract Number. The Abstract Number determines the Government Agency that will receive the money from the trust fund, for example, the Department of Transportation receives money for the Highway Trust Fund and the Airport and Airway Trust Fund.

Edit CCC "Z" when an amount of $100.00 or more is on Part I, Line 1, Part II Line 2 and/or Part III Line 3, but no Abstract Number (IRS Number) is indicated.

Edit CCC "1" when the "Renewal" box is checked and the $50.00 category is paid rather than the $500.00 category. The lower amount is used for those wagers authorized by their respective states.

Edit CCC "3" when the taxpayer either does not respond to a correspondence or the correspondence is returned undeliverable.

Edit CCC "4" when the IRS's Compliance Branch has prepared a return and the revenue officer has entered IRC 6020(b).

Edit CCC 5 when IRS Number (Abstract Number) 150 has a significant amount (greater than zero) and Form 7208 , Excise Tax on Repurchase of Corporate Stock, is attached.

Edit CCC 6 when IRS Number (Abstract Number) 150 has a significant amount (greater than zero) and Form 7208 , Excise Tax on Repurchase of Corporate Stock, is not attached.

Edit CCC 8 when IRS Number (Abstract Number) 150 amount equals zero and Form 7208 , Excise Tax on Repurchase of Corporate Stock, is attached.

If the taxpayer enters the number of gallons (Fuel and Floor Stock Taxes), number of persons (Ship Passenger Tax), number of tons (Manufacturers Taxes), number of doses (Vaccine Taxes), premiums paid (Other Excise Taxes), amount of obligations (Obligations not in Registered Form) and the "Tax" column is blank or zero, compute and edit the tax for the correct IRS number. Also, adjust Line 3 accordingly.

If the taxpayer has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for IRS Number(s) 16, 17, 18, 19, 20 (in Part II), 21, 53, 54, or 98 on Form 720, Form 6627, Environmental Taxes, must be attached.

The medical device excise tax was repealed by the Further Consolidated Appropriations Act 2020, Public Law (PL) 116-94.

) The Excise Tax on Repurchase of Corporate Stock (Form 7208, IRS Number 150), created by P.L 117-169, Inflation Reduction Act (IRA) of 2022, Section 10201, is valid for tax periods 202306 and later. IRM 3.11.23.12.15, IRM 3.11.23.12.16 and IRM 3.11.23.12.17.

The Excise Tax on Sales of Designated Drugs During Statutory Periods (IRS Number 142), created by P.L 117-169, IRA 2022, Section 11003, is valid for tax periods 202403 and later.

Form 6627, Environmental Taxes, is used to figure the environmental tax on petroleum and imported petroleum products, chemicals (other than ozone-depleting chemicals (ODCs)), imported chemical substances, ODCs, imported products that used ODCs as materials in the manufacture or production of the product, and the floor stocks tax on ODCs. The hazardous substance superfund financing rate (IRS Numbers 53 (domestic) and 16 (imported) was reinstated with the Inflation Reduction Act (IRA22). The oil spill liability tax (IRS Numbers 18 and 21) was reinstated effective January 1, 2020, after expiring December 31, 2018.

See IRM 3.11.23.16.2.1 for Form 6627, Part I (Revision January 2023) information. See IRM 3.11.23.16.2.2 for Form 6627, Part I (Revision July 2022) information.

See IRM 3.11.23.16.2.3 through IRM 3.11.23.16.2.7 for Form 6627, Part II through Form 6627, Part VI (Revisions January 2023 and July 2022) information.

See IRM 3.11.23.16.2.8 through IRM 3.11.23.16.2.11 for Form 6627 (Revision January 2021 and prior) information.

For perfection of Form 6627, Environmental Taxes. See Exhibit 3.11.23-2, Form 6627, Environmental Taxes.

Form 6197, Gas Guzzler Tax, is used to figure the gas guzzler tax. The gas guzzler tax is imposed on the sale, use, or lease by the manufacturer or importer of an automobile of a model type that does not meet certain standards for fuel economy. Automobiles imported for business or personal use are subject to the tax. See Exhibit 3.11.23-3 for Form 6197, Gas Guzzler Tax.

If an entry of less than $1,000.00 is present on IRS Number 40, it is in the wrong place. Review attached forms or explanations for correct IRS number.

If Form 6197 is not attached, correspond with the taxpayer for a completed form. If no reply, edit CCC "3" and continue processing.

If Form 6197 is attached, it must be examined as follows:

Take the following actions on the conditions listed for Form 6197:

If no reply, edit CCC "3" and continue processing.

IRS Number 30, Foreign Insurance Taxes - If the taxpayer files Form 720 with the notation "Section 6114 Election" on the top of the return, or has a Form 8833, Treaty-Based Return Position Disclosure, or a letter referring to IRC 6114 attached to the return:

If the taxpayer has notated at the top of the Form 720 in red print the following statement: "Election to participate in FET Voluntary Compliance Initiative pursuant to Announcement 2008-18" , enter CCC "L" on the Form 720 and continue processing the return.

IRS Number 20 is used for reporting Floor Stock tax on Ozone Depleting Chemicals (ODC) annually.