This IRM supplies general background information about the types of returns processed and the nature of the work that Document Perfection personnel are expected to perform on these returns and documents.

The instructions in this section pertain to the processing of Non-Master File (NMF) Returns. These returns are not processed into a Master File; Individual Master File (IMF) or Business Master File (BMF). Accounting handles the NMF procedures in the Accounting function.

These instructions apply only to Kansas City Submission Processing Campus (KCSPC).

Authority for these procedures is found in the following sections of the Internal Revenue Code and their corresponding Treasury Regulations:

The Director of Kansas City Submission Processing site monitors operational performance for the Kansas City Submission Processing Campus (KCSPC).

The Operations Manager monitors operational performance for their operation.

The Team Manager/Lead handles performance monitoring and ensuring employees have the tools to perform their duties.

The Team Employees are responsible to follow the instructions in this IRM and keep updated IRM procedures.

Program Goals: Ensure documents are code and edit ready for transcription.

Program Effectiveness is measured using the following:

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

For Terms, Definitions and Acronyms, see Exhibit 3.11.25-4.

The following resources may assist in performing the work as outlined in this IRM.

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

The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98), IRC 3705(a) gives identification requirements for all IRS employees working tax-related matters.

All IRS employees who communicate by telephone, face-to-face, or any other method of correspondence with taxpayers or their personal 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 and give 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 later contact, when the nature of an employee's work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either telephone or in-person) their badge identification (ID Card) number on the first contact.

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. 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 Wage and Investment (W&I) 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.

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 send to TAS in accordance with your local procedures.

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

There are certain restrictions imposed in the processing of NMF returns which are listed below.

Do not withdraw any remittance return from the originally numbered block.

Indicate misblocked returns by a notation on the Form 813, Document Register.

Keep blocks intact for the Accounting Operation, after which any needed correspondence or adjustment action will be taken. Move full paid returns with Correspondence Action Sheet (CAS) or adjustment requests to top of the block of returns.

Overpayments on returns will be processed from accounting records.

This section includes general instructions for processing all types of forms.

The period for filing a claim for credit or refund has two prongs:

Generally, a claim for credit or refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later, or if no return was filed, within 2 years from the date the tax was paid.

If the claim was filed by the taxpayer within 3 years of the date the return was filed, the amount of the credit or refund is limited to the part of the tax paid within the period, immediately preceding the filing of the claim, equal to 3 years plus the period of any extension of date for filing the return. Any prior year return (amended or delinquent original) received more than 2 years 9 months from the due date, route to the Statute Unit for clearance. Also, refer to IRM 25.6.1.10.2.7.2, Limitations on the Amount of a Claim

Amended returns (including "Revised," "Supplemental," "Correcting," "Duplicate," etc.) must be associated with the original returns for reconciliation and adjustments. This reconciliation is the responsibility of Accounts Management (AM). For remittance returns, no attempt to associate will be made before document analysis.

Send any unnumbered, no-remittance, amended returns to AM unless a specific part of this section prescribes different routing instructions.

Send any amended returns with remittance to Cincinnati Accounts Management (CAMC) BMF NMF Team C103, Mail Stop 6111G.

NMF Accounting will send them to AM after they complete their processing.

Any prior year return (amended or delinquent original) received more than 2 years 9 months from the due date route to the Statute Unit for clearance.

Examine all attachments to returns being processed and take any action required by the attachments.

Enter on the attachment(s) the taxpayer's name, address, identifying number, and any other pertinent information. (If the document is numbered, enter the DLN on the attachment(s)). In addition, take the following actions:

A signature and jurat are required for all returns except the following:

Do not correspond for a signature on "CIS" returns that have Form 13596, Reprocessing Returns, attached.

Correspond as follows:

If the jurat is altered or stricken (crossed-out), remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Program (FRP) for review.

Accept a "signature declaration" (a signature with jurat obtained through IRS correspondence) if attached to the return.

Since tax examiners are not expected to be handwriting experts, 26 Code of Federal Regulations (CFR) 301.6064-1 allows the Service to presume that the signature on a return, statement, or other document is the true signature of the person who signed the document.

Faxed (except as part of return perfection, contact with the taxpayer), electronic, digital or typed signatures are not acceptable.

Only one correspondence attempt is needed for a signature.

The date a document is received in the Campus or IRS Office is the date stamped as the IRS Received Date.

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The received date will be stamped on the face of the return.

A valid IRS Received Date Stamp may consist of the following:

If the date stamp is not present or the date is illegible or invalid, edit the received date in MMDDYY format in the middle of page one of the return. Edit the Received Date according to the following priority:

If a return has been faxed to another area of the service and then sent to Submission Processing for processing, do not edit the Enterprise Electronic Fax (EEFax) Date as the IRS Received Date. Edit a Received Date according to normal procedures.

Edit the Received Date as follows:

Form CT-2 is a quarterly return which generally covers taxable compensation paid during a single quarter.

Form CT-2 is due on or before the end of the second month following the calendar quarter for which compensation is reported. The following table shows additional due date information for the quarters covered.

Returns are sorted and blocked according to IRM 3.8.45, Deposit Activity - Manual Deposit Process.

Returns blocked full paid by processing campus in series 600-619 are as follows:

Returns blocked part paid by processing campus in series 900-919 are as follows:

Ensure that all duplicate copies of Form CT-2 have the entity and tax data entered.

Label copy of the Form CT-2 as "Duplicate copy of Form CT-2" and make copies of attachments of the correspondence for transmittal to the Railroad Retirement Board at the following address:

Follow local procedures for disposal of all other copies of Form CT-2.

Compute Line 6 if blank. Compute Lines 1, 2, 3, and 4 if necessary to compute Line 6. See Figure 3.11.25-2.

Figure 3.11.25-2

Figure 3.11.25-2 provides an illustration of a taxpayer's completed Form CT-2, Employee Representative's Quarterly Railroad Tax Return. Line 1, Taxable compensation paid during this quarter subject to Tier 1 tax, shows an amount of $15,345. That amount is multiplied by 12.4 percent which results in Line 1 amount of $1,902.78.Line 2, Taxable compensation paid during this quarter subject to Tier 1 Medicare tax, shows an amount of $15,345. That amount is multiplied by 2.9 percent which results in Line 2 amount of $445.00.Line 3, Taxable compensation paid during this quarter subject to Tier I Additional Medicare Tax, shows an amount of $15,345. That amount is multiplied by 0.9 percent which results in Line 3 amount of $138.11.Line 4, Taxable compensation paid during this quarter subject to Tier II tax, shows an amount of $15,345. That amount is multiplied by 13.1 percent which results in Line 4 amount of $2010.19.Line 6, shows an edited amount of $4496.08The form shows the taxpayer has signed William Willow and dated the form February 18, 2024.The EIN showing is 00-1245764 and the name control underlined is BIRC.The address shown is 256 28th Street, Buffalo, NY, 14240 and the calendar quarter ending is December 2023.

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An adjustment on Line 5 must have a supporting document. An adjustment for any amount identified as "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Adjustments in wage information reported for prior quarters must be supported with a statement having the following information:

Form 2438 must be filed on or before the 30th day after the close of the company's taxable year. Leave Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, attached to the Form 2438.

Examine the Form 2438 for completeness, timeliness, the name, address, and EIN. There is no need to check for signature, as a copy of the Form 2438 is attached to Form 1120-REIT or Form 1120-RIC and serves as Schedule D.

Compute the following lines, if blank:

Verify Line 13, Capital Gains Tax, is 21 percent of Line 11, Amount of Undistributed Capital Gains on Line 10, Designated under IRC 852(b)(3)(D). If different, edit the correct amount to Line 13.

Due to the limited number of Form 2438 filed, a distinctive MFT Code is not set up for tax deposits of Form 2438.

Flag all non-remittance balance due and part paid returns.

See Exhibit 3.11.25-2, Form 2438, Undistributed Capital Gains Tax Return, for an example of Form 2438.

Taxpayers must file Form 8831 and pay the tax by April 15 of the year following the calendar year in which the residual interest is transferred to a disqualified organization. If the regular due date falls on a weekend or legal holiday, the due date is the next business day.

A pass-through entity must file Form 8831 and pay the tax due under IRC 860E(e)(6) by the 15th day of the 4th month following the close of its tax year in which the disqualified person is a record holder.

Taxpayers may file Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, to request an extension of time to file Form 8831.

Document Perfection will process all full-paid Form 8831. All refund claim Form 8831 will be processed in AM. If refund claim Form 8831 are received, DO NOT PROCESS. Send to AM using Form 4227, Intra-SC Reject or Routing Slip.

All edited full paid Form 8831 will be sent to Cincinnati Accounts Management (CAMC) BMF NMF Team C103, Mail Stop 6111G via Form 2345, Batch Transmittal.

If amounts are illegible or over 10 digits, examine the form for attachments and edit the correct amount above the taxpayer's figure. If an amount is found on an attachment, but it is illegible or cannot be determined, prepare Form 3696, Correspondence Action Sheet, indicating the information needed from the taxpayer. Attach it to the front of Form 8831 and send to the Suspense Unit.

Form 8831 received with remittance will be sent to Deposit Activity using Form 4227. If the Form 8831 received with remittance is a copy of a previously filed return, DO NOT PROCESS. Send to Cincinnati Accounts Management (CAMC) BMF NMF Team C103, Mail Stop 6111G using Form 4227.

Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

Tax Year - ensure the tax year is in YYMM format and edited under the Office of Management and Budget (OMB) number of the form.

If the name, address, or Taxpayer Identification Number (TIN) is incomplete or missing, review any attachments to obtain necessary information, and edit on the return. If attachments are not available and there is no other method of obtaining the necessary data, proceed as follows:

Always check return attachments before corresponding for missing information.

When corresponding for information, inform the taxpayer that penalties may be assessed (unless reasonable cause is shown) if the requested information is not provided.

Correspond for the following information in Part I, unless Part II and Part III are the only parts completed:

Attempt to obtain all missing information through one contact with the taxpayer, if possible. Allow 45 days suspense on all correspondence. After 45 days, proceed as follows:

If present, perfect as described in (2) through (4), below.

If Line 11 is blank and there is an entry on any of Lines 5, 7, or 10, bring the amount forward to Line 11. Figure 3.11.25-3, Form 8831, Editing Line 11.

Figure 3.11.25-3

Figure 3.11.25-3 provides an illustration of a completed Form 8831, Excise Taxes on Excess Inclusions of REMIC Residual Interests. In the far right hand corner under the OMB No. is the tax period of 2312.Name control of HICK is underlined.Identifying number shown is 00-2426785.Street address is 43 Aspen Dr.City, state and Zip code are Tampa, Florida 33602.Line 1 is for the date the residual interest was transferred to a disqualified organization. The date shown is 03-30-22.Line 2, the “Yes” box is checked indicating the taxpayer took a reasonable amount of time to ensure the residual interest that was transferred was no longer held by a disqualified organization.Line 3 shows a date of 09-20-23 when the disqualified organization disposed of the residual interest.On Line 6, an amount of $655.00 is shown as the excess inclusion allocable to the residual interest transferred that accrued during the period the disqualified organization held the interest.Line 7 (amount due) shows an amount of $229.00.In the lower portion of the return is the received date stamp. The receive date shown is 04152024.Line 11 shows an edited amount of $229.00 which was taken from line 7.Line 13 shows an edited amount of $229.00.Signature- The form shows the taxpayer has signed Joyce Balsam and dated the form April 15, 2024, with a title of CEO.

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If Line 11 is greater than Line 12, verify Line 13 by subtracting Line 12 from Line 11. If the amount on Line 13 is different, edit the difference between Lines 11 and 12 to Line 13.

If Line 11 is less than Line 12, delete Line 13, if an entry is present. Edit the difference between Lines 12 and 11 to Line 14 and route to AM.

All edited full paid Form 8831 will be sent to Cincinnati Accounts Management (CAMC) BMF NMF Team C103, Mail Stop 6111G via Form 2345, Batch Transmittal.

Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

The taxpayer enters the tax year at the top of the form under the title. Edit this tax period in YYMM format to the left of the OMB Number.

If the tax period is blank, edit the tax period by checking elsewhere on the form. Check the signature date and, if no signature date, use current processing year.

To math verify the form, use the following:

If Line 12 or 13 is changed, correspond with the taxpayer using Letter 3024C, Math Error Explained (BMF), to advise that the change was made and the reason for the change.

If any change causes a change from Balance Due to an Overpayment, or from an Overpayment to a Balance Due, edit an "X" to the left of the amount on the wrong line and edit the new amount on the right line.

When the above coding and editing has been completed, send the edited return(s) to the Non-Master File section.

Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

The taxpayer enters the tax year at the top of the form under the title. Edit this tax period in YYMM format to the left of the OMB Number.

If the tax period is blank, decide and enter the tax period by checking elsewhere on the form.

To math verify the form, use the following:

If Line 12 or 13 is changed, correspond with the taxpayer using Letter 3024C, Math Error Explained (BMF), to advise that the change was made and the reason for the change.

If any change causes a change from Balance Due to an Overpayment, or from an Overpayment to a Balance due, edit an "X" to the left of the amount on the wrong line and edit the new amount on the right line.

When the above coding and editing has been completed, send the edited return(s) to the Non-Master File section.

Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

The tax period is determined by the receipt of the first payment from the corporation. This date will appear on the line immediately below the form number. Edit this tax period in YYMM format to the left of the OMB Number.

The return is due and the tax must be paid on or before the 90th day following the initial receipt of greenmail (as shown by the date on the return). See IRM 3.11.25.2.10, Received Date Editing, for instructions.

Math verify the return as follows:

If Line 8 or Line 9 is changed, correspond with the taxpayer using Letter 3024C, Math Error Explained (BMF), to advise that the change was made and the reason for the change.

If any change causes a change from Balance Due to an Overpayment, or from an Overpayment to a Balance Due, edit an "X" to the left of the amount on the wrong line and edit the new amount on the right line.

When the above coding and editing has been completed, send the edited return(s) to the Non-Master File section.

Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

The Tax Period is determined by the receipt of the structured settlement payment rights. The date will appear on the line below the form number. Edit this date in YYMM format to the left of the OMB Number.

The Form 8876 is due by the 90th day following receipt of structured settlement payment rights. See IRM 3.11.25.2.10, Received Date Editing, for procedures.

Math verify the return as follows:

If Line 6 or Line 7 is changed, correspond with the taxpayer using Letter 3024C, Math Error Explained (BMF), to advise that a change was made and the reason for the change.

If any change causes a change from Balance Due to an Overpayment, or from an Overpayment to a Balance Due, edit an "X" to the left of the amount on the wrong line and edit the new amount on the right line.

When the above coding and editing has been completed, send the edited return(s) to the Non-Master File section.

Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

The taxpayer enters the date of sale or other disposition on Line 1 of Form 8924. Edit the tax period in YYMM based on this date to the left of the OMB Number.

The due date for filing Form 8924 is the 90th day following the taxable transfer.

If Line 6 is blank and there is an amount on Line 5, multiply Line 5 by 20 percent (.20). Enter the result on Line 6.

If Line 7 is blank and there is an amount on Line 4, multiply Line 4 by 35 percent (.35). Enter the result on Line 7.

If Line 8 is blank, but Line 6 and/or Line 7 have an amount entered, add Lines 6 and 7. Enter the result on Line 8.

Edit IRS Number 012 to the right of Line 8.

When the above coding and editing has been completed, send the edited return(s) to the Non-Master File section.

If the taxpayer files multiple Form 8928 tax returns for IRC 4980B and IRC 4980D with a "summary" Form 8928 for the same tax period, only the "summary" Form 8928 will need to be coded. Leave all supporting Form 8928 tax returns attached to the "summary" Form 8928 for processing.

Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

The taxpayer enters the tax year at the top of the Form 8928 under the title. Edit this tax period in YYMM format to the left of the OMB Number.

The due date for filing Form 8928 is dependent on the IRC section for which the return is being filed. The following table reflects the due dates:

Math verify the return as follows:

The following table shows the IRS Number, the applicable IRC section, and the line reported on Form 8928:

If an amount is reported on Lines 16, 34, 36, and/or 38 then edit the right IRS Number 126, 127, 128, and/or 137 to the right of the line reporting the amount.

When the above coding and editing has been completed, send the edited return(s) to the Non-Master File section.