The purpose of Document Perfection is to code and edit (perfect) returns and other documents for input to the Master File (MF) through the Integrated Submission and Remittance Processing System (ISRP) or the Service Center Recognition Image Processing System (SCRIPS). 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. 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.

Title 26 of the United States Code (USC) or more commonly known as the Internal Revenue Code (IRC).

The Federal Unemployment Tax Act (FUTA) established the Federal Unemployment Tax and required cooperation between the States, Internal Revenue Service, and the Department of Labor to determine an employer's contribution to the Unemployment System.

Tax revenue collected from the FUTA is applied under the FUTA Trust Fund and passed on to the States by the Department of Labor (DOL) to help them administer their unemployment programs.

Credit Reduction States are announced by the Department of Labor each November. See Exhibit 3.11.154-13, Credit Reduction States and Rates (TY 2024 - 2004).

After the return is processed, the FUTA Certification Program verifies the credit claimed and the FUTA wage amount reported by the employer on their Form 940 return. Information is exchanged with the states to certify the amounts.

All Policy Statements for SP are contained in IRM 1.2.12, Servicewide Policies and Authorities, Policy Statements for Submission Processing Activities:

The Directors, KCSPC, and OSPC monitor operational performance for their SP campus.

The Operations Managers for KCSPC, and OSPC monitor operational performance for their operation.

The Department Managers for KCSPC, and OSPC monitor Team Units performance within their department.

The team manager/lead monitors performance and ensures employees have the tools to perform their duties.

The team employees follow the instructions contained in this IRM and maintaining updated IRM procedures.

Program Goal for C&E is to ensure documents are perfected (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 is measured by:

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

Although it is best to not use words that require interpretation, you may have to use them. If you do, you should include definitions for words which require interpretations. Examples of these words:

For a list of C&E acronyms / abbreviations and definitions see Exhibit 3.11.154-16, Acronyms / Abbreviations and Definitions.

The following resources may help in performing the work as outlined in this IRM:

The purpose of Document Perfection is to code and edit returns and other documents for input to the Master File.

The Service Center Recognition Image Processing System (SCRIPS) and the Integrated Submission and Remittance Processing System (ISRP) process Form 940 Series Returns. See IRM 3.11.154.2.2, Processing Guidelines for Form 940 Series Returns.

Some lines on the return are correctly entered as "zero" , "dash" , "N/A" , or "none" and do not need to be edited.

Edit all money amounts in dollars and cents, if the distinction between dollars and cents is not clear.

Edit any misplaced or illegible transcription entry to the proper transcription line. The entry may have to be computed from other figures on the return or attachment.

If the taxpayer submits tax information for any year after 2005 on a Form 940 or Form 940 (PR) with a prior revision year, edit the return, as necessary. See IRM 3.11.154.2.2, Processing Guidelines for Form 940 Series Returns.

All Form 940-EZ returns must be converted to the current year Form 940.

Form 940 returns are processed through the Service Center Recognition Image Processing System (SCRIPS) or the Integrated Submission and Remittance Processing System (ISRP).

Form 940 returns that are processed through SCRIPS can only be Tax Year 2006 and subsequent.

The Integrated Submission and Remittance Processing System (ISRP) transcribes information from forms that cannot be input through SCRIPS. ISRP should process the following forms:

Form 940 returns filed on Revision 2006 and subsequent forms are designed to be processed through SCRIPS scanning system. See Exhibit 3.11.154-1, Form 940 (Revision 2024), and Form 940 Schedule A (Revision 2024) for transcription lines.

All Tax Year 2005 and prior Form 940 returns are processed through ISRP regardless of the year revision:

All Form 940-EZ returns must be converted to current tax year Form 940 format:

All Form 940 (PR) revision 2022 and prior are processed through ISRP in OSPC only:

All Form 940 (sp) are processed through ISRP.

Returns processed through SCRIPS are batched and prepared separately as Perfects or Imperfects.

Form 940 returns (Revisions 2006 and subsequent), which are batched as Perfects, must be prepared as follows:

When a SCRIPS Form 940 return is submitted with blue or black ink and any check Box or the signature is in orange, or pink, recheck the boxes in red or place an asterisk (*) in the left most position in the signature Box.

When Code and Edit reviews the return, determine:

Code and Edit tax examiners should ensure that the jurat and authorized signature are shown and are in their proper location on the Form 940 , Form 940 (PR), or Form 940 (sp)

After review and editing, when placing the return in a batch, Form 940, Form 940 (PR), Form 940 (sp), and Form 940 Schedule A or attachments should be in sequential order. This will help SCRIPS and ISRP during data transcription:

The document has a Schedule R (Form 940), Continuation Sheet for Schedule R (Form 940), or non-federal Schedule R (Form 940) attached:

Figure 3.11.154-1

This exhibit shows the Form 940 with the Form 940 Schedule R (Current) attached and the Form 940 Schedule R indicator (SRI) edited in the right margin of the return next to Line 6 (Subtotal). Below is the Form 940 (PR) with the Form 940 Schedule R attached, and the indicator edited in the right margin of the return next to Line 6 (subtotal).

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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 Return 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 1.11.2.2.3, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

Edit marks are edited on the return for transcription to the Automated Data Processing (ADP) System through ISRP or SCRIPS. 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 marks entered by other areas, such as Collections, Entity Control or Accounts Management, except to place the marks in the correct area or perfect for legibility. Figure 3.11.154-2 .

Photocopied Returns - Re-edit or underline any valid, black edit marks. See IRM 3.11.154.3.10, Correspondence Imaging Inventory (CII) Returns, and IRM 3.11.154.3.9, Form 3893 - Re-Entry Document Control .

The table below provides a description of edit marks for SCRIPS and ISRP processing:

Figure 3.11.154-2

This is an example of a Form 940 for tax years 2022 showing misplaced edit marks made by other IRS functions.

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The following action will be edited on the Unemployment Returns in the Code and Edit program:

Action Codes are used to show whether correspondence, research, or some other action is needed. The Action Code sets the suspense period for the return and places the return in the workable or unworkable suspense inventory. See Exhibit 3.11.154-11, Action Code Chart for suspense periods.

When necessary, assign a three-digit Action Code.

Edit Action Codes for Form 940, Form 940 (PR) (Revisions 2022 and prior), and Form 940 (sp) just below the line that states For Privacy Act. Do not extend into the left margin. Edit the Action Code in the bottom left margin of the return (Revision 2005 and prior).

Assign Action Codes in the following priority order:

Use the following table if more than one Action Code is needed:

Edit the following Action Codes when a return cannot be perfected:

Continue perfecting the return after editing the Action Codes.

Valid Action Codes are listed below:

For more information and applicable Action Codes see:

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

Computer Condition Codes (CCC) are used to identify a special condition or computation to post to the Master File.

For Secured and Prepared Returns, edit the correct CCC as shown on the return, attachment, or Form 13133.

Edit Computer Condition Codes in the following locations:

If instructed to issue a Letter 1382C, See IRM 3.11.154.3.9.1, Form 3893, Re-Entry Document Control when Form 3893 is attached or See IRM 3.11.154.3.9.2, Form 13596, Reprocessing Returns when Form 13596 is attached to determine if a letter should be issued.

Code and Edit will no longer edit the Penalty and Interest code 1 on the Form 940, Form 940 (PR), or Form 940 (sp).

Code and Edit will no longer edit the FTD Penalty on Form 940, Form 940 (PR) revision 2022-2006, Form 940 (sp).

The Internal Revenue Code (IRC) provides for other penalties to be assessed against taxpayers, including those penalties described in IRC 6663 and IRC 6674.

Provisions have not been made for assessing these penalties on the original input of the return. Therefore, they should not be included on the return.

Pre-Computed penalties other than Delinquency (Late Filing Penalty), Failure to Deposit Penalty (FTD) or Failure to Pay (FTP) should be handled as follows:

Failure to Deposit - When a pre-computed Failure to Deposit penalty is shown on the return, add the penalty amount to the balance due amount or, subtract the amount of the penalty from the overpayment (refund) amount claimed.

Delinquency, Failure to Pay and Minimum Penalty - When a Delinquency, Failure to Pay, or Minimum Penalty is shown on the return, subtract the penalty from the balance due amount if the taxpayer has computed the penalty and interest, and added it to the balance due amount.

A return must contain specific items before it is considered processable and timely filed. Perfect all documents to the extent possible from schedules and other attachments. The specific items needed are:

Conditions which make a document unprocessable are:

Procedures for Unprocessables Documents

DO NOT send the following unprocessable returns to the Hold File:

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

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 is made and documented, faxed signatures are acceptable.

Contact the taxpayer 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 make sure 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 Third-Party Designee election is there to allow a designated individual to discuss and/or disclose information about the taxpayer's Form 940, Form 940 (PR)revision 2022 and prior, or Form 940 (sp) with the IRS. The Third-Party Designee election applies only while the return is being processed, and the third-party designation authority expires one year from the due date of the return in question. Refer to IRM 21.1.3.3.1, Third-Party Designee Authentication.

The Third-Party Designee is located in Part 6, Form 940, Form 940 (PR) (Revisions 2006 and subsequent) and Form 940 (sp).

The Paid Preparer information is in Part 7 of Form 940, Form 940 (PR) (Revision 2008 and subsequent), or Part 8 (revisions 2007 - 2006) and Form 940 (sp).

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

Do not correspond for a signature on CII returns that have Form 13596 attached. See IRM 3.11.154.3.10, Correspondence Imaging Inventory (CII) Returns, for processing instructions.

If a signature is present on line designated for the taxpayer signature and Page 1 of Form 940, Form 940 (PR) revision 2022-2006, or Form 940 (sp) is missing take the following action:

If a signature is missing:

If the jurat is altered or stricken (crossed out), see IRM 3.11.154.3.14, Frivolous Arguments.

Accept a signature declaration, (a signature with a 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 actually signed the document.

Facsimile Signature:

For SCRIPS processing. If a return is submitted typed with blue or black ink and the signature is in orange or pink, place an asterisk (*) in the left most position in the signature Box to prevent the SCRIPS system from generating a notice to the taxpayer.

Only one correspondence effort is required for a signature.

All returns must have a Tax Period. Edit the Tax Period to the right of the form title in YY format.

Prepare a dummy return for each Tax Year involved when more than one tax year is shown on a return. Correspond with the taxpayer if a dummy return cannot be prepared.

An Early-Filed return is a return with a Received Date prior to the Tax Period Ending date.

Never send back an Early-Filed return to the taxpayer.

Do not edit Credit Reduction information on Early-Filed return.

Do not pull from pack if the return is an early filed SCRIPS.

The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998, Section 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 effort 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.

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 (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case 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.

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 more information on cases that TAS will no longer accept..

Some SP Centers have developed local use Desk Procedures.

Such procedures are only to be used:

Unit managers must have a signed approval on file from the responsible Operations Manager on all SP Center Desk Procedures.

All existing local information and procedural issuances should be reviewed by the Operations Manager upon receipt of the new IRM revision to ensure conformance with Headquarters procedures.

BMF 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.

Document Perfection is responsible for identifying refunds and for initiating requests for manual refunds.

A return is normally delinquent if it is not received on or before the return due date. Accept a return as timely ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. A return is not delinquent if the return is timely postmarked and mailed before, or on the due date. If the due date falls on a weekend or legal holiday, the return is timely if postmarked by the first business day following the weekend or legal holiday. See IRM 3.11.154.3.3, Received Date for instructions on determining timeliness of returns.

If the return is truly delinquent, check return or attachments for an explanation of late filing. Send the taxpayer Letter 1382C to inform the taxpayer we have received their request. Do not edit CCC "R" if a pre-computed delinquency penalty is shown. See IRM 3.11.154.3.9.1, Form 3893, Re-Entry Document Control when Form 3893 is attached, or See IRM 3.11.154.3.9.2, Form 13596 - Reprocessing Returns when Form 13596 is attached to determine if a letter should be issued.

Form 940 , Form 940 (PR) revision 2022 and prior, and Form 940 (sp) are annual (calendar year) returns.

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

A valid IRS Received Date is required on all Form 940, Form 940 (PR), and Form 940 (sp) returns.

When a Form 940 , Form 940 (PR) revision 2022 and prior or Form 940 (sp) is delinquent and the taxpayer explains the return is late due to the rejection of a timely filed electronic return, check the return for a MeF rejection notification.

If a MeF rejection notification is not attached, perfection of the Received Date is not necessary. If a notification is attached, edit the IRS Received Date in MMDDYY format as follows:

The IRS Received Date may or may not be stamped on the face of the return.

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

If the Received Date is not present or the date is illegible/invalid, edit the Received Date in MMDDYY format in the middle of Page 1 of the return. Edit the Received Date in the following priority:

Edit the Received Date as follows:

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

Form 940 . Form 940 (PR) revision 2022 and prior, and Form 940 (sp) returns are non-taxable when any of the following exist:

If there are indications on the return or attachments that the taxpayer is liable, correspond for all missing items necessary to process the return (unless otherwise directed by IRM procedures).

If return is non-taxable and there is an indication the taxpayer is a single State filer, edit as follows:

Services rendered to a federally-recognized Indian Tribal Government (or its instrumentalities) are exempt from FUTA tax, subject to the tribe's compliance with applicable State law.

For submission processing purposes, Code and Edit employees should accept all FUTA tax returns notated or referenced with the following explanations for ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Perfect the return as Non Taxable and Final. See the following procedures:

Figure 3.11.154-4

This figure is an example of a current year Form 940 of how to perfect a return for Indian Tribal Government. You would edit CCC F and place an asterisk (*) to the left of the entries in Box 7, 8, 12, and 14. The editing will cause the overpayment to be refunded to the taxpayer.

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A potential statute control return is any return with a Received Date that is 2 years and 9 months or more after the return due date.

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

If any of the conditions listed below are present, don’t route to Statute Control Unit 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 Unit for clearance. Edit CCC "W" if the return needs processing. See Exhibit 3.11.154-17, Routing Guide for Attachments, for more information.

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 Unit.

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

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

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

A return is considered Amended based on the following:

Examine the return for attachments:

Follow the instructions in the chart below when there is an indication of an amended return:

Only the following data must be present and edited if missing on all amended returns:

If Box "a" is marked erroneously and needs to be deleted, place an asterisk (*) as closely as possible to the left of the Box.

Figure 3.11.154-5

This figure is an example of an Amended Return. You can identify a return as being amended when the taxpayer has marked Box a (Amended). Enter Computer Condition Code G to the right of the line that states: You must fill out both pages of the form and Sign it.

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

A return posted to the wrong account or module must be reprocessed to post to the proper account or module.

Some re-entry returns may have originally been filed electronically (E-file). These returns may be identified by the presence of Mod E-file printouts in lieu of an actual return, or TRPRT PRINT DO NOT PROCESS printed on the top margin. Do not correspond for missing signatures on these documents.

Each re-entry return must have a Form 3893, Re-Entry Document Control or Form 13596, Reprocessing Returns, attached. This will show that special handling is required by the examiner:

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

Examine Form 3893 or Form 13596 to determine the action needed to make the return processable:

Figure 3.11.154-6

This figure is an example of a Form 3893, Re-Entry Document Control. This form is used to re-input a return that has not posted to an account or module. Complete the following areas of Form 3893: File type, Alpha/Numeric Block Control Number, Document Locator Number, DLN Year Digit, Remarks (state your instructions in the remarks area), Process As, Serial Number, Prepared By, Telephone Extension, Date, Reprocessable Document.

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Correspondence Imaging Inventory (CII) is an inventory system for scanning all Account 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. The scanned signature is acceptable.

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

Follow the correspondence instructions below for "CII" Returns:

Some taxpayers are filing Form 940 returns with Form 1040 Schedule H attached for prior tax years.

Returns requiring prompt, quick, jeopardy, or termination assessments will be received in Document Perfection accompanied by one of the following forms:

Route these returns to Accounting.

If the Form 2859 is attached to the return and there is a TC 59X with no received date, edit the received date on the return from the Date of Request Box on the Form 2859.

Some employers are given permission by National Office to file computer-printed Form 940.

Computer-generated/computer-printed forms which do not conform to the official version should be given to your manager so that National Office can be notified. For example:

Businesses use frivolous arguments for expressing dissatisfaction with the substance, form or administration of the tax laws by trying to illegally avoid or reduce tax liabilities. See IRM 25.25.10, Frivolous Return Program. See Exhibit 3.11.154-12, Potential Frivolous Arguments for Examination Review, for a list of recognized frivolous arguments made by businesses.

Review the return to decide 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:

Criminal Investigation (CI) investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC include the 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 of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, 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 which 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.

If the return is an Aggregate Form 940 return containing the notation of State, City, County in the entity area of the return, or Notice 2003-70, Fiscal Agent, Fiscal Intermediary, Home-Care Service Providers, Household Employer Agent, Chore Workers, or Certified Professional Employer Organization noted on the return:

If the Aggregate Form 940 return does not contain any of the notations mentioned in (1) above, correspond and send the return back to the taxpayer to inform them they are not eligible to file an aggregate return.

If the taxpayer requests abatement for Failing to Make Timely Deposits when the return is submitted Do not edit CCC "J" . Send Letter 1382C to inform the taxpayer of the proper procedure to follow to request abatement, if, and when a penalty is assessed. If the taxpayer does not request abatement, but notates that they are filing an aggregate FUTA return, edit CCC "J" .

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.

If the Form 940, Form 940 (PR) revision 2022 and prior, or Form 940 (sp) 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.

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

The EIN is located on the top of the form (Employer Identification Number Box).

Determine the EIN as follows:

If the EIN is missing on Page 2 of Form 940 , Form 940 (PR) revision 2022 and prior, Form 940 (sp) , and/or on Form 940 Schedule A, and/or Form 940 Schedule R, edit the last 4 digits of the EIN from Page 1 of Form 940 , Form 940 (PR) revision 2022 and prior or, Form 940 (sp)in the EIN designation area of Page 2. This is not necessary if the taxpayer has submitted a duplex form.

If EIN on Page 2 of Form 940 , Form 940 (PR) revision 2022 and prior or Form 940 (sp) , and/or on Form 940 Schedule A, and/or Form 940 Schedule R, does not match the EIN in the entity area ofForm 940 , Form 940 (PR), revision 2022 and prior, or Form 940 (sp) edit on Page 2 of Form 940 , Form 940 (PR) revision 2022 and prior, or Form 940 (sp) and/or Form 940 Schedule A, and/or Form 940 Schedule R:

The name control consists of four characters or less.

See Job Aid Document 7071A to properly determine the Name Control.

It is no longer necessary to edit a name control on returns that will be processed through SCRIPS. Do not take any action if the name control is already edited.

If the taxpayer indicates on the return or on an attachment of a Name Change, route the return to Entity Control. Follow local procedures using Form 13934, Entity Document/C&E Merge Transmittal.

Edit the Name Control on the returns processed through ISRP as follows:

An in care of name can be identified by the words in care of or the symbols c/o or percent symbol (%).

Ensure that the in care of name is located above the street address.

If the taxpayer crosses out the original in care of name, or adds a new in care of name, they are stating that the in care of name is changed.

Perfection of the address is necessary when the mailing address (Street or P.O. Box) is not easily identified. For a list of correct street abbreviations, see Document 7475.

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

If the return requires that the city, State, or ZIP Code be changed, edit an asterisk (*) to the left, line through the incorrect entity, and enter the correction in the entity where space allows.

The procedures for perfection of addresses are as follows:

Figure 3.11.154-7

This figure is an example of two street addresses being shown on a return. When this happens, do the following: Asterisk and line through the second street address. Notate TC 014 in the upper left margin and route for input of TC 014.

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Figure 3.11.154-8

This figure is an example of one street address being changed to a P.O. Box by the taxpayer. When this happens, do the following: Asterisk and line through the street address, if the taxpayer has not already done so. Notate TC 014 in the upper left-hand margin and route for input of TC014. The lined through address information will be input on IDRS before the return leaves Code and Edit.

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The U.S. Postal Service established address requirements for Army Post Office (APO), Fleet Post Office (FPO) and Diplomatic Post Office(DPO) addresses. If the old address appears, convert to the 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 the Conversion Chart below:

A foreign (international) address is any address that is not one of the 50 U.S. states, or the District of Columbia.

Consider returns with Army Post Office (APO)/Diplomatic Post Office (DPO) or Fleet Post Office (FPO) addresses as domestic addresses. See IRM 3.11.154.5.5, Entity perfection - Domestic Addresses.

Route returns with a foreign address to Ogden Submission Processing Center (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. Posessions/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:

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

An Entity State Code is required on ALL Form 940.

Perfect the Entity State code as follows:

The Type of Return Box can be found in the upper right-hand corner, to the right of the entity area on Form 940 (Rev. 2006 and subsequent):

Form 940 . Form 940 (PR) revision 2022 and prior, and Form 940 (sp), Part 1 allows the employer to show whether:

Part 2 on Form 940 , Form 940 (PR), Revision 2022 and prior, and Form 940 (sp) , is comprised of lines 3 through 8.

Part 3 contains the taxpayer’s amounts for Adjustments and Credit Reduction lines 9, 10, and 11.

In Part 4 of Form 940 , Form 940 (PR) revision 2022 and prior or, Form 940 (sp) the taxpayer calculates the total FUTA tax for the return tax year, applies any payments, deposits, or overpayments from a prior year against the calculated FUTA tax, and determines the balance due or overpayment amount.

Part 5 of Form 940 , Form 940 (PR) revision 2022 and prior and Form 940 (sp) consists of Lines 16a through 16d, the Record of Tax Liability (ROFTL) quarterly liability amounts, and Line 17, Total Tax Liability for the Year amount. The quarterly amounts on Lines 16a through Line 16d are transcribed, and Line 17 is generated by the system (e.g., not transcribed).