Section 3. — Internal Revenue Manual Part 3. Submission

3.22.3 Individual Income Tax Returns¶

Manual Transmittal¶

Purpose¶

(1) This transmits revised IRM 3.22.3, International Error Resolution - Individual Income Tax Returns.

Material Changes¶

(1) IRM 3.22.3.2 Updated General Guidelines for Tax Examiners with the following information:

Form 1040-SS(sp) will be removed from 3.22.3 as guidance for that form is the same as for Form 1040-SS however, all correction procedures will apply equally to Form 1040-SS (sp) and Form 1040-SS.

Added table showing deleted/obsoleted forms and tax year of form was obsoleted as well as the processing year the forms were deleted from ERS screens.

Updated format of Form 1040-SS.

(2) IRM 3.22.3.3 Updated titles of various international income and withholding statements.

(3) IRM 3.22.3.17.1(1) Added Field 03OTX. IPU 25U0344 issued 03-12-2025.

(4) IRM 3.22.3.17.24(1) Added Field 03OTX. IPU 25U0344 issued 03-12-2025.

(5) IRM 3.22.3.144.3(11) Added waiver countries for TY24. IPU 25U0344 issued 03-12-2025.

(6) IRM 3.22.3.145.3(6) Added waiver countries for TY24. IPU 25U0344 issued 03-12-2025.

(7) IRM 3.22.3.146.3(6) Added waiver countries for TY24. IPU 25U0344 issued 03-12-2025.

(8) IRM 3.22.3.148.2(8) Updated reference to paragraph 9 instead of paragraph 8. IPU 25U0344 issued 03-12-2025.

(9) IRM 3.22.3.169.2.3.1(3) Clarified what entries to accept. IPU 25U3268 issued 05-09-2025.

(10) IRM 3.22.3.169.2.3.1(3) (a) Added waiver countries for TY24. IPU 25U0344 issued 03-12-2025.

(11) IRM 3.22.3.232.3.4(3) Corrected typo "we" to "were" . IPU 25U0344 issued 03-12-2025.

(12) IRM 3.22.3.243.1(1) Added Field 03OTX. IPU 25U0344 issued 03-12-2025.

(13) IRM 3.22.3.246.1(1) Added Field 03OTX. IPU 25U0344 issued 03-12-2025.

(14) IRM 3.22.3.252(3) Added information on TY21 qualification criteria and credit limits. IPU 25U0444 issued 04-14-2025

(15) IRM 3.22.3.261.2.2(1) Corrected 05TYP entry from Z to 8 for Form 8689. IPU 25U3268 issued 05-09-2025.

(16) IRM 3.22.3.262.4.1(3) Removed incorrect paragraph a from correspondence guidance. IPU 25U3268 issued 05-09-2025.

(17) IRM 3.22.3.263(3) Added guidance for when there is a write-in on line 6 of Form 1040-SS. IPU 25U0344 issued 03-12-2025.

(18) IRM 3.22.3 Editorial changes made throughout IRM 3.22.3 and updated to tax year 2025 annual inflation adjustments where applicable as listed below:

Updated line numbers and field designators to reflect tax year 2025 changes to forms and ERS screens.

Updated links due to moving of subsections.

Maximum Foreign Earned Income Exclusion Amount ($130,000.00).

Standard deductions for Single and Filing Separate taxpayer ($15,000.00).

Social Security Withholding limit ($)

(19) IRM 3.22.3 Updated to reflect the following Section and Error Code changes:

Section 36 - Form 8283 added.

Section 068 - Form 8910 deleted

Section 088 - Form 3471 added.

Error Code 062 - Late Filing Code/Received Date deleted.

Error Code 250/550 - Taxable Income deleted.

Error Code 251/551 - No Tax on Tips Deduction added.

Error Code 252/552 - Qualified Over Time Compensation Deduction added.

Error Code 253/553 - Car Loan Interest Deduction added.

Error Code 254/554 - Deduction For Seniors Deduction added.

Error Code 256/556 - Taxable Income instructions moved from Error Code 250/550 moved to Error Code 256/556

Error Code 290 - Child Tax Credit and Credit for Other Dependents deleted.

Error Code 292/592 - Energy Efficient Home Improvement Credit added.

Error Code 292 - Mortgage Interest Credit instructions moved to Error Code 293.

Error Code 298 - Motor Vehicle Credits Form 8936 instructions moved to Error Code 297.

Error Code 299 - Form 3800, 8801, and Other Credits instructions moved to Error Code 298.

Error Code 299 - Child Tax Credit and Credit for Other Dependents added.

(20) IRM 3.22.3 Updated throughout to reflect the following fields moving to different sections and being updated with the new field names in the relevant error codes for PY26 :

Field 01DSI moved from section 01 to section 03 and renamed 03DSI.

Fields 01DN1, 01DS1, 01CT1, 01DN2, 01DS2, 01CT2, 01DN3, 01DS3, 01CT3, 01DN4, 01DS4, and 01CT4 moved to section 02 and renamed accordingly.

Fields 02CD1, 02AM1, 02CD2, 02AM2, 02CD3, 02AM3, 02AGI, 02ITM, 02NI, 02TXA, 02RPD, 0206, 02PDP, 0208, 02W2A, and 02W2B moved to section 88 and renamed accordingly.

Field 47OEI moved to section 03 and renamed to 03OEI.

(21) IRM 3.22.3 Updated throughout to remove from sections and error codes the following fields: 05AMC, 22IND, 221RG, 5604A, 5605A, 5605B, 5605C, 5606B, 5606C, 56BD2, 5606A, 56BD3.

(22) Various editorial changes made throughout this IRM for clarity, neutral and plain language, and grammar. Cross-references, web addresses, legal references, and links were added, removed or revised as appropriate.

Exceptions & meaning →

Effect on Other Documents¶

Audience¶

Effective Date¶

Scott Wallace Director, Submission Processing Taxpayer Services Division

Exceptions & meaning →

Program Scope and Objectives¶

Purpose. This Internal Revenue Manual (IRM) provides instructions for correcting errors identified in Error Resolution System (ERS) processing of International Individual Master File (IMF) tax returns. International IMF tax returns are tax returns identified using the criteria in IRM 3.22.3.3, International Returns.

Audience. Tax examiners in the Error Resolution Department of the Austin Submission Processing Center, Taxpayer Services (TS), are the primary users of this IRM.

Policy Owner. The Director of Submission Processing is responsible for the policies in this IRM.

Program Owner. The Code & Edit/ERS IMF Section of the Return Processing Branch of Submission Processing is responsible for the procedures and all updates related to this IRM.

Program Goals. The ERS program objective is to provide timely and accurate correction of tax returns that are in ERS error inventory after inputting return data via Integrated Systems Remittance Processing (ISRP) and Modernized e-File (MEF). This IRM provides procedures for the processing of international IMF tax returns and related documents in ERS inventory.

Exceptions & meaning →

Background¶

The Error Resolution System (ERS) is an online computer application used by tax examiners to correct errors identified on tax returns during Generalized Mainline Framework (GMF) processing.

Exceptions & meaning →

Authority¶

for the procedures in this IRM is in the following sections of the Internal Revenue Code and their corresponding Treasury regulations:

IRC 6213(b)

IRC 6201(a)

Policy Statements and Delegation Orders for submission processing are in the following IRMs:

IRM 1.2.1, Servicewide Policy Statements

IRM 1.2.2, Servicewide Delegations of Authority

Exceptions & meaning →

Roles and Responsibilities¶

The Submission Processing Director is responsible for monitoring operational performance of Submission Processing.

The Austin Submission Processing Input Correction Operations Manager is responsible for monitoring operational performance of Austin Error Resolution.

The Error Resolution team manager and lead tax examiner are responsible for performance monitoring and ensuring tax examiners have the tools to perform their duties.

Tax examiners are responsible for following the instructions in this IRM, including all IRM procedural updates (IPU) posted to the SERP (Servicewide Electronic Research Program) website.

Exceptions & meaning →

Program Management and Review¶

Program Reports. All ERS records are controlled by a Document Locator Number (DLN), and error records are accessed and assigned for correction by block DLN. The daily ERS Error Inventory Report ERS 13-40 lists each block of returns and the number of returns in ERS inventory by program. The ERS system displays with command ERVOL the real-time volume in inventory by status and by program. Daily, weekly and periodic reports are available to management through Control-D WebAccess to manage inventory and capture data for program planning and review. See IRM 3.12.37, Error Resolution, IMF General Instructions, Related Reports, for a listing and description of ERS reports.

Quality Review. Tax examiner completed inventory is selected for quality review during real-time processing. This review is conducted according to the procedures in IRM 3.30.30, Embedded Quality for Submission Processing (EQSP) System.

CARE Review. The Computer Assisted Review of ERS (CARE) is an on-line quality review of Taxpayer Notice Codes (TPNC) when assigned by tax examiners in ERS. Assigned TPNCs are reviewed and records are corrected to prevent the issuance of erroneous notices to taxpayers. Results are reported in daily and periodic reports to managers and tax examiners.

Annual Clearance of IRM. This IRM is updated and published annually after review and concurrence by affected offices according to the clearance process established in IRM 1.11.9, Internal Management Documents, Clearing and Approving the Internal Revenue Manual (IRM), prior to publishing.

Exceptions & meaning →

Program Controls¶

All tax examiners must submit and have approved by management a BEARS request to gain access to the Error Resolution System.

Tax returns in ERS are worked on a First In First Out (FIFO) basis as they are received from input systems through the General Mainline Framework (GMF).

Control clerks are responsible for the control of error documents. Inventory control procedures are described in IRM 3.12.37, Error Resolution, IMF General Instructions.

Exceptions & meaning →

Forms¶

Tax forms and internal use forms referenced in this IRM are listed in Exhibit 3.22.3-14, Tax Forms and Internal Use Forms.

Exceptions & meaning →

Terms and Acronyms¶

Acronyms commonly used in this IRM are listed in Exhibit 3.22.3-15, Acronyms.

Exceptions & meaning →

Organization of Text¶

The text in this manual is organized in the following order:

General Information

Correspondence Procedures

Special Procedures

Field Errors

Error Codes

Reply and No Reply Procedures

Exhibits

Exceptions & meaning →

General Guidelines for Tax Examiners¶

ERS International IMF Job Aid 2512-001 and IMF Foreign Address Job Aid 2513-703 are used as references with this manual. This manual refers the tax examiner to appropriate explanatory information or exhibits in the job aids. When a conflict between any reference or training material and this manual occurs, the manual instructions take precedence.

IRM 3.12.2, Individual Master File Error Resolution General Instructions, and IRM 3.12.3, Error Resolution, Individual Income Tax Returns, must be used when specific instructions are not provided in IRM 3.22.3. Error record formats and error field displays for Form 1040, are found in IRM 3.12.2 and IRM 3.12.3, except for field displays for Form 1040 errors that only generate on international returns (EC 025, EC 051, EC 148, EC 150, EC 152, EC 154, EC 156, and EC 216). The field displays for these errors are included in this IRM. The fields, invalid conditions, and correction procedures that apply specifically to the processing of international returns Form 1040-NR, and Form 1040-SS are included in the relevant sections and error codes in this IRM.

For prior year line numbers on either, examiners are reminded to use ERS International IMF Job Aid 2512-001.

Form or schedule

TY Obsoleted

PY Removed from ERS screens

Form 1040A

2018

2021

Form 1040EZ

2018

2021

Form 2555-EZ

2019

Schedule C-EZ

2019

short Schedule SE

2020

Form 1040-NR-EZ

2020

2022

Form 1040(PR)

2023

A new Form 1040-SR is introduced for TY2019. This form is identical to 2019 Form 1040 with increased font size and expanded form length. All processing instructions that apply to Form 1040 apply equally to Form 1040-SR.

In tax year 2020, processing year 2021, Form 1040-NR has been redesigned to Form 1040-NR plus Schedule 1, 2 and 3. As part of its redesign, pages 1 and 2 of Form 1040-NR is restructured to look like the redesigned Form 1040. This redesigned Form 1040-NR will use Schedules 1, 2, and 3 (Form 1040). With the redesign of Form 1040-NR for TY20, Schedule A, Schedule NEC and Schedule OI (Page 3, 4 and 5 of TY19 Form 1040-NR) are removed from Form 1040-NR and will be filed as a separate schedule. Throughout the IRM references to page numbers are replaced with references to Schedules as follows:

TY 2020

TY 2019 and prior

Schedule A

Page 3 of Form 1040-NR

Schedule NEC

Page 4 of Form 1040-NR

Schedule OI

Page 5 of Form 1040-NR

ERS screen displays for Section 01 through Section 05 have been realigned to follow the new redesigned Form 1040-NR. Here is summary of Section 01 through Section 05 and how they are realigned:

Section 01 - Entity portion of Form 1040-NR

Section 02 - Form 3471 Edit Sheet

Section 03 - Beginning at line 1, Page 1, Form 1040-NR through entire Page 2, Form 1040-NR

Section 04 - Schedule 1, Form 1040/Form 1040-NR

Section 05 - Schedule 2 and 3, Form 1040/Form 1040-NR

Exceptions & meaning →

Note:¶

TY18 Schedule 4, 5 and 6 of Form 1040 are obsolete for TY2019 and later.

Exceptions & meaning →

Reminder:¶

ERS examiner are reminded to get familiarized with the changes to field names, sections and error codes.

Due to the redesign of Form 1040-NR, the line number references in sections, error codes and instructions are updated to follow line numbers on TY21 form. For Form 1040-NR-EZ, the line numbers references remain unchanged to follow TY19 line numbers. For prior year line numbers on either Form 1040-NR or Form 1040-NR-EZ, examiners are reminded to use ERS International IMF Job Aid 2512-001.

A new Section 94 is created to include all the verified fields that are applicable to the fields that are in Sections 01 through 05. This is a required section.

According to Notice 2020-23, the due dates, both April 15 and June 15 for TY 2019 tax returns has been postponed to July 15, 2020. This change in due date applies to all forms, Form 1040, Form 1040-SR, Form 1040-NR, Form 1040-NR-EZ, Form 1040(PR), and Form 1040-SS.

Although the due date for TY 2020 returns has been postponed, the programming for Field T-DAT> has not been revised to reflect this postponed due date of May 17, 2021. Instructions in EC 287 and EC 340 have been updated to follow the May 17, 2021 date when TIN assignment date is after the date in Field T-DAT>.

In processing year 2021 and later, TY 2017 and prior year returns will be impacted with changes in programming. Programming will compute taxable income, child tax credit and additional child tax credit based on the rules revised in Tax Cuts and Job Act that is TY 2018 returns. Programming will not compute exemptions amount. ERS examiners are reminded to manually compute the taxable income and the credits and use the verified fields accordingly, prior to assigning TPNCs.

In tax year 2021 Form 1040(PR) and Form 1040-SS entity section is updated to add the following filing statuses: Head of Household and Qualifying Widower.

In tax year 2023 Form 1040(PR) is made historical and is replaced with Form 1040-SS (sp). For the remainder of this text Form 1040-SS (sp) will be referred to as Form 1040-SS; however, all correction procedures will apply equally to Form 1040-SS (sp) and Form 1040-SS.

In tax year 2023 Form 1040-SS/Form 1040-SS (sp) went from a 4 page return that included abbreviated versions of Schedules C, F, and SE to a 2 page form. Taxpayers will attach Schedules C, F, and SE if required. For TY23 and TY24 Page 2 of the Form 1040-SS/1040-SS (sp) includes Part II for bona fide residents of Puerto Rico to claim the Additional Child Tax Credit.

In tax year 2025 Form 1040-SS went from a 2 page return to a 3 page return. Page 3 of the return includes Part II for bona fide residents of Puerto Rico to claim the Additional Child Tax Credit.

IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2, Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevated through appropriate channels for executive approval.

Exceptions & meaning →

International Returns¶

International tax returns are identified by the presence of one of the following:

An address outside the 50 United States and Washington D.C. (This does not include Army/Air Force Post Office/Fleet Post Office Post Office (APO/FPO) addresses.)

Form 1040 GUAM

Form W-2AS, American Samoa Wage and Tax Statement.

Form W-2CM, Commonwealth of Northern Mariana Islands Wage and Tax Statement

Form W-2GU, Wage and Tax Statement from Guam.

Form 499R-2/ W-2 PR, Wage and Tax Statement from Puerto Rico.()

Form W-2VI Wage and Tax Statement from U.S. Virgin Islands.

Form 1040-NR, U.S. Nonresident Alien Income Tax Return

Form 1040-NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents

Form 1040(PR) - U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico) (Spanish version)

Form 1040-SS - U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico)

Form 1040-SS (sp) - Declaración de Impuestos Federal sobre el Trabajo por Cuenta Propia (Incluyendo el Crédito Tributario Adicional por Hijos para Residentes Bona Fide de Puerto Rico)

Form 1042-S Foreign Person’s U.S. Source Income Subject to Withholding, Form SSA 1042-S Social Security Benefit Statement or Form RRB 1042-S United States Railroad Retirement Board

Form 2555 - Foreign Earned Income

Form 2555-EZ - Foreign Earned Income Exclusion

Exceptions & meaning →

Note:¶

Form 2555-EZ is obsolete as of December 31, 2018

Form 4563 - Exclusion of Income for Bona Fide Residents of American Samoa

Form 5074 - Allocation of Individual Income Tax to Guam or the Commonwealth of Northern Mariana Islands

Form 8288-A - Statement of Withholding on Certain Dispositions by Foreign Persons

Form 8689 -Allocation of Individual Income Tax to the United States Virgin Islands

Form 8804 - Annual Return for Partnership Withholding Tax Under Section 1446

Form 8805 - Foreign Partner's Information Statement of Section 1446 Withholding Tax

Form 8813 - Partnership Withholding Tax Payment

Form 8833 - Treaty-Based Return Position Disclosure

Form 8854 - Initial and Annual Expatriation Information Statement

Form 8891 - U.S. Information Return for Beneficiaries of Certain Canadian Registered Retirement Plans

Exceptions & meaning →

Note:¶

Form 8891 is obsolete as of December 31, 2014

Form 8898 - Statement for Individuals Who Begin or End Bona Fide Residency in a United States Possession

Dual-status - Form 1040 and Form 1040-NR filed together for the same tax year; "Dual-status" or "D/S" indicated on the return

Nonresident Alien (NRA), primary or both taxpayers are nonresident alien

Exceptions & meaning →

Exception:¶

The primary taxpayer is a nonresident alien (NRA) without a Social Security number (SSN) or an individual taxpayer identification number (ITIN), but the secondary taxpayer has an SSN/ITIN and is reporting income.

International Tax Treaty - taxpayer indicating exemption or exclusion of tax and/or income due to an International tax treaty

Exceptions & meaning →

Note:¶

"American Indian" treaty returns are not considered International returns. They must be renumbered as a domestic return.

Treaty Trader

Fulbright Grantee

IRC 871, IRC 893, IRC 911, IRC 931, IRC 932, IRC 933, IRC 934 or IRC 935 of the Internal Revenue Code (IRC) is notated anywhere on the return.

Exceptions & meaning →

Exception:¶

For electronically filed returns, if the amount of the exclusion is $0 and there are no other indications of international criteria, DO NOT send to Austin for processing as an international return.

Notation of "Streamlined" or other indication of Streamlined Filing Compliance Procedures on the return.

Form 14653 (Streamlined Foreign Offshore), Form 14654 (Streamlined Domestic Offshore), or similar certification.

Exceptions & meaning →

Note:¶

Returns on which taxpayers convert income paid in foreign currency to U.S. currency are not considered International unless there are other international criteria.

International returns are assigned the following File Location Codes (FLC):

FLC 20 is assigned to any return identified as international using the criteria above, not including returns that are identified as U.S. territory returns.

FLC 21 is assigned to any Form 1040, Form 1040-SS (sp), and Form 1040-SS that is identified as a U.S. territory return. The five key U.S. Territories are American Samoa (AS), Commonwealth of Northern Mariana Islands (CNMI), Guam (GU), Puerto Rico (PR) and United States Virgin Islands (USVI).

All returns with a valid Form 2555 must be processed with FLC 20. A Form 1040 with a U.S. territory entity address that has a valid Form 2555 with a tax home in a foreign country is assigned to FLC 20.

If a return has any of the following characteristics and does not have an LB&I stamp indicating LB&I has already reviewed it, SSPND 640 and route the return to Stop 4301 AUSC:

"Relief for Certain Former Citizens" , "Relief" , "Expat" , "FAQ 24" , FAQ 25, or something similar is written on the return and/or attachments

Form 8854 is attached.

Copy of Certificate of Loss of Nationality (CLN) is attached.

Taxpayer specifically mentions "Relief" ," Former Citizen" , "Expatriate process" , "FAQ 24" , "FAQ 25" , or something similar in an attached letter.

Form 8898 is attached.

Exceptions & meaning →

Caution:¶

If the primary TIN is missing do not route to Entity.

Exceptions & meaning →

Form 1042-S Income Codes¶

Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, and Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, are used by withholding agents to report tax withheld at source under Chapter 3 of the Internal Revenue Code on certain income paid to nonresident aliens or foreign corporations not engaged in trade or business in the United States, or tax withheld at source under Chapter 4 of the Code on account holders that did not provide information to their financial institution to report as required under the Foreign Account Tax Compliance Act (FATCA). Below is a listing of income codes, description (type) of income, and where the income should be reported on Form 1040-NR.

Form 1042-S Income Code

Form 1042-S Income Code Prior Year (If Different)

Description (Type) of Income

Where Income is Reported on Form 1040-NR (unless specified on Form 1040-NR)

Interest paid by United States Obligors-General

Page 1, line 2b or Schedule NEC, line 2c

Interest Paid on Real Property Mortgages

Page 1, line 2b or Schedule NEC, line 2a

Interest Paid to Controlling Foreign Corporations

Page 1, line 2b or Schedule NEC, line 2c

Interest Paid By Foreign Corporations

Page 1, line 2b or Schedule NEC, line 2b

Interest On Tax-Free Covenant Bonds

No reporting required

Dividends Paid By United States Corporations - General

Page 1, line 3b or Schedule NEC, line 1a

Dividends Qualifying for Direct Dividends Rate

Page 1, line 3b or Schedule NEC, line 1b

Dividends Paid by Foreign Corporations

Page 1 line 3b or Schedule NEC line 1b

Capital Gains

Page 1, line 7 or Schedule NEC, Lines 9 and 18

Industrial Royalties

Schedule 1, line 5 or Schedule NEC, line 3

Motion Picture or Television Copyright Royalties

Schedule 1 line 5 or Schedule NEC line 4

Other Royalties (e.g., Copyright, Software, Recording, Publishing, Endorsement Payments)

Schedule 1, line 5 or Schedule NEC, line 5

New in TY 2015

Royalties paid on certain publicly offered securities

Schedule 1, line 5 or Schedule NEC, line 5

13 (TY 2014 and prior)

Real Property Income and Natural Resources Royalties

Schedule 1, line 5 or Schedule NEC, line 6

14 (TY 2014 and prior)

Pensions, Annuities Alimony, and/or Insurance Premiums

Page 1, line 5b (pensions and annuities) or Schedule NEC, line 7 (pensions and annuities), Schedule 1, line 2a(alimony)

Exceptions & meaning →

Note:¶

Pension income reported on Form 1042-S should be reported on Schedule NEC, line 7.

15 (TY 2014 and prior)

Scholarship or Fellowship Grants

Schedule 1, line 8r (Form 1040-NR)

16 (TY 2014 and prior)

Compensation for Independent Personal Services

Schedule 1, line 3 or 8z or Page,1 line 1h or 1k

Exceptions & meaning →

Exception:¶

If the income is earned by a nonresident alien for services performed outside the U.S., the income is NOT taxable. Follow the taxpayer's intent if they do not claim the income and the address on the 1040-NR is outside of the U.S.

17 (TY 2014 and prior)

Compensation for Dependent Personal Services

Page 1, line 1h or 1k (Form 1040-NR)

18 (TY 2014 and prior)

Compensation for Teaching

Page 1, line 1h or 1k (Form 1040-NR)

19 (TY 2014 and prior)

Compensation during Studying and Training

Page 1, line 1h or 1k(Form 1040-NR)

Not valid after TY 2015

21 (TY 2015 and prior)

Gross Income - Capital Gain Dividend

Page 1, line 7 or Schedule NEC, line 9 and 18

Interest Paid on Deposit with a Foreign Branch of a Domestic Corporation or Partnership

Page 1, line 2b or line 15

20 (TY 2014 and prior)

Other Income

Schedule 1, line 8z or Schedule NEC, line 12

Qualified Investment Entity (QIE) Distributions of Capital Gains

Page 1, line 7 or Schedule NEC, Lines 9 and 18

Trust Distributions Subject to IRC 1445

Schedule 1, line 8z or Schedule NEC, line 12

Unsevered Growing Crops and Timber Distributions By a Trust Subject to IRC 1445

Schedule 1, line 8z or Schedule NEC, line 12

Publicly Traded Partnership Distributions Subject to IRC 1446(a)

Schedule 1, line 8z or Schedule NEC, line 12

Gambling Winnings

Schedule NEC, line 10a or line 11 (depending on country of residence)

Deposit Interest

Schedule NEC line 12

Original Issue Discount (OID)

Schedule NEC, line 12

Short-Term OID

Schedule NEC, line 9

Notional Principal Contract income

Schedule 1 line 8z or Schedule NEC line 12

Substitute Payment - Interest

Page 1, line 2b or Schedule NEC, line 2c

Substitute Payment - Dividends

Page 1, line 3b or Schedule NEC, line 1a

Substitute Payment - Other

Schedule 1, line 8z or Schedule NEC, line 12

Capital Gains Distributions

Page 1, line 7 or Schedule NEC, Lines 9 and 18

Return of capital

Usually, not reported

Eligible deferred compensation items subject to IRC 877A(d)(1)

Page 1, line 1h

Distribution from a nongrantor trust subject to IRC 877A(f)(1)

Schedule NEC, line 12

Other dividend equivalents under IRC 871(m)

Schedule 1, line 8z or Schedule NEC, line 1c

Guarantee of Indebtedness

Schedule 1, line 8z or Schedule NEC line 12

20 (TY 2011 and prior)

Earnings as an Artist or Athlete without a central withholding agreement

Page 1, line 1h, or 1k, or Schedule 1, line 3(Form 1040-NR)

Earnings as an Artist or Athlete with a central withholding agreement

Page 1, line 1h or 1k, or Schedule 1, line 3(Form 1040-NR)

Specified Federal procurement payments

Schedule 1, line 8z

Income previously reported under escrow procedure

No reporting required

New in TY 2015

Exceptions & meaning →

Note:¶

In TY 2014 Income Code 51 was “Other Income”.

Interest paid of certain actively traded or publicly offered securities

Page 1, line 2b or Schedule NEC, line 2

New in TY 2015

Dividends paid on certain actively traded or publicly offered securities

Page 1, line 3b or Schedule NEC, line 1

New in TY 2015

Substitute payments - dividends from certain actively traded or publicly offered securities

Page 1, line 3b or Schedule NEC, line 1

New in TY 2017

Exceptions & meaning →

Note:¶

In TY 2015-2016, Income Code 54 was “Other Income”

Substitute payments - interest from certain actively traded or publicly offered securities

Page 1, line 2b or Schedule NEC, line 2

New in TY 2019

Taxable death benefits on life insurance contracts

Schedule 1, line 8z or Schedule NEC, line 12

New in TY 2022

Dividend equivalent 871(m) transaction combination

Page 1, line 3b or Schedule NEC, line 1c

New in TY 2022

Section 1446(f) amount realized from publicly traded partnerships (PTPs)

Page 1, line 3b

New in TY 2023

Publicly traded partnership distributions - undetermined

Schedule 1, line 8z

Exceptions & meaning →

Reminder:¶

Follow instructions in the error code on your screen to address exceptions to these income reporting guidelines or income exempted by a treaty.

When taxpayer files a Form 1040 and the only income reported is from Form 1042-S, Code & Edit is instructed to correspond for the filer's U.S. status. If Code & Edit did NOT correspond, search the return and attachments for a statement that identifies the taxpayer as a U.S. citizen or resident alien filing Form 1040. If no statement is attached SSPND 215 and select paragraph X on Form 13900. (Refer to instructions at IRM 3.22.3.264.3.3 if the income or withholding is from Form SSA/RRB 1042-S.)

Exceptions & meaning →

A taxpayer who is a resident alien and a nonresident alien in the United States within the same tax year files a dual-status tax return. This condition usually occurs in the year of arrival to or departure from the United States. The taxpayer will file Form 1040 or Form 1040-NR for the tax year based on the taxpayer's residence status on the last day of the year.

The taxpayer will file a return using Form 1040 if a resident of the United States on the last day of the tax year.

The taxpayer will file a return using Form 1040-NR if not a resident of the United States on the last day of the tax year.

If the requirements are met, a dual-status alien may elect to be treated as a resident for the entire year.

Follow the intent of the taxpayer and process the tax form that is identified as the "Dual-Status Return" if there is an indication they entered or left the United States in December. See question G Schedule OI, Form 1040-NR.

Process a Form 1040-NR as dual-status if the taxpayer identifies the return as a "Dual-Status Return" and attached a Form 8854, Initial and Annual Expatriation Statement.

If unable to determine which return to process from Schedule OI of Form 1040-NR or an attached statement elsewhere on the return, process the tax form that is identified by the taxpayer as the "Dual-Status Return" .

If unable to determine which tax form should be processed as the return following (a) through (f) above, correspond for dual-status dates using paragraph W of Form 13900 for Letter 4087C.

Restrictions for Dual-Status Taxpayers -see EC 218 at IRM 3.22.3.168.2.4, and EC 256 at IRM 3.22.3.190.2.3.

Tax Treaties - In general, dual-status taxpayers may be eligible for tax treaty benefits only on income received during the period that they are nonresident aliens. The country, the amount of income exempt by a tax treaty, and the tax treaty article under which an exemption is claimed must be reported on Form 1040-NR. See EC 218 at IRM 3.22.3.168.2.4, and EC 256 at IRM 3.22.3.190.2.3.3.

Exceptions & meaning →

Exception:¶

Resident Aliens may be entitled to treaty benefits with respect to certain categories of income.

A Form 1040-NR (or substitute statement) may be attached to a Form 1040 dual-status return as a statement (worksheet) if the taxpayer was a resident in the United States on the last day of the tax year. Similarly, a Form 1040 (or substitute statement) may be attached to a Form 1040-NR dual-status return as a statement (worksheet) if the taxpayer was a resident outside the United States on the last day of the tax year.

Check the Form 1040, Form 1040-NR, (or substitute statements) to ensure that Code & Edit has combined all information onto the controlling form.

When processing Form 1040-NR, and Itemized Deductions are claimed on Schedule A of Form 1040 that do not have a corresponding line on Schedule A of Form 1040-NR, enter the amount(s) in Field 0707.

Exceptions & meaning →

Streamlined Filing Compliance Procedures¶

The Streamlined Filing Compliance Procedures were made available to taxpayers on September 1, 2012, and the IRS significantly expanded the procedures effective July 1, 2014. The governing documents for the Streamlined Filing Compliance Procedures consist of the pages on IRS.gov outlining the procedures and the interpretative Frequently Asked Questions (FAQ).

Returns submitted using the Streamlined Filing Compliance Procedures will have blocking series from 850 - 899 and specific program number 46117 (Form 1040).

Both primary and secondary taxpayers must have a valid TIN on a return submitted using the Streamlined Filing Compliance Procedures, either a Social Security number (SSN) or individual taxpayer identification number (ITIN). A TIN assigned by the IRS (IRSN) is invalid.

Don’t correspond for a missing TIN on a return submitted using the Streamlined Filing Compliance Procedures. If the TIN is missing and not found after searching the return and after research, then suspend with Action Code 320 to Entity for assignment of an IRSN for primary taxpayer. When the return comes back from Entity with an IRSN, follow the instructions in EC 005 at IRM 3.22.3.83.2 before entering RPC O.

If the TIN is present but invalid, follow the applicable instructions in Error Code 004 at IRM 3.22.3.82.2 and Error Code 005 before entering RPC O.

Returns that are eligible for the Streamlined Filing Compliance Procedures are coded with SPC "P" . If missing, enter this code on the return and in Field 01SPC, unless directed to remove the code in EC 004, or EC 005, or after correspondence.

A copy of the certification must be attached to each 1040-X before routing to ICT.

If correspondence is required keep the submission together until a reply is received or the suspense period has expired.

Exceptions & meaning →

Corresponding on Returns Submitted Using the Streamlined Filing Compliance Procedures¶

If correspondence is necessary for any return submitted under the Streamlined Filing Compliance Procedures, all returns submitted by the taxpayer must be kept together. This means that if one return needs correspondence then all returns in the submission must be kept with the suspended return(s) and held together in the Suspense area.

Don’t correspond for missing information related to the streamline procedures (paragraphs A through E on Form 13900) if the primary taxpayer doesn’t have a valid TIN (SSN or ITIN). Follow the instructions in IRM 3.22.3.7 (4) and process as a return not filed using Streamlined Filing Compliance Procedures.

If the correspondence was issued for incomplete certification, and all required information is now completed, do the following:

Then

A reply contains an original return that was missing from the initial submission,

Walk the unprocessed return(s) through the pipeline to be processed.

Associate the newly processed return(s) with the submission being held in Suspense and follow the IRM procedures for returns filed using the Streamlined Filing Compliance Procedures.

Submission contains only original 1040 family returns,

Edit CCC "M" , CCC "R" , and CCC "P" on each return in the submission. Delete CCC "N" if present.

Ensure a copy of the completed certification is attached to each tax return.

Route original certification to LB&I MS 4305 AUSC.

Submission contains both original and amended returns (Form 1040-X),

Separate the submission between original and amended returns.

Edit CCC "M" , CCC "R" , and CCC "P" on each return in the submission. Delete CCC "N" if present.

Exceptions & meaning →

Note:¶

Do not edit CCCs on Form 1040-X.

Place an AM Streamlined cover sheet along with a copy of the completed certification on each Form 1040-X and route to AM.

Route original certification to LB&I MS 4305 AUSC.

For incomplete replies or no replies see Exhibit 3.22.3-10.

Exceptions & meaning →

Form 1040 With Form 2555 - Purpose of Form¶

Form 2555 must be attached if any of the following indications are on Form 1040:

IRC 911

A notation to see Form 2555

Foreign Housing Exclusion, Line 8z, Schedule 1, of Form 1040 (negative amount)

Foreign Earned Income Exclusion, Line 8d, Schedule 1, of Form 1040 (negative amount)

Foreign Housing Deduction, line 24j Schedule 1, of Form 1040

A taxpayer with foreign earned income is entitled to claim the following exclusions and/or deductions on Form 2555 :

Foreign-Earned Income Exclusion (Part VII); and/or

Housing Deduction, if housing costs were paid from self-employment earnings (Part VI and IX); or

Housing Exclusion, if housing costs were paid for with employer-provided amounts (Part VI and VIII).

A U.S. citizen or resident alien may use Form 2555 to exclude a limited amount of their foreign earned income and claim housing exclusion or deduction:

Tax Year

Maximum Foreign Earned Income Exclusion

2025

$130,000

2024

$126,500

2023

$120,000

2022

$112,000

2021

$108,700

2020

$107,600

2019

$105,900

2018

$103,900

2017

$102,100

2016

$101,300

2015

$100,800

2014

$99,200

2013

$97,600

2012

$95,100

2011

$92,900

2010

$91,500

2009

$91,400

2008

$87,600

2007

$85,700

2006

$82,400

2002 through 2005

$80,000

For TY18 and prior, a U.S. citizen or resident alien living and working in a foreign country may use Form 2555-EZ to exclude a limited amount ($103,900 for TY 2018) of his or her foreign earned income. However, if any of the below conditions apply, the taxpayer must use Form 2555:

Foreign earned income is from self-employment;

The total foreign earned income exclusion exceeds the maximum amount

Exceptions & meaning →

Note:¶

A taxpayer cannot claim more than the maximum amount on Form 2555 however this amount may indicate the taxpayer adding housing exclusion or business/moving expenses to their total exclusion amount

Form 2555-EZ includes business or moving expenses; or

Form 2555-EZ is used to claim housing exclusion or deduction.

Foreign earned income from a foreign country is wages or compensation for any personal services performed in any foreign country. It does not include U.S. territories.

Exceptions & meaning →

Caution:¶

Federated States of Micronesia, Marshall Islands, and Palau are treated as foreign countries for income tax purposes, and thus are eligible for the foreign earned income exclusion. These returns must be processed as FLC 20.

Unearned income may not be excluded on Form 2555 or Form 2555-EZ TY18 and prior. To avoid double taxation, foreign taxes paid on unearned income can be:

Claimed as a credit on Form 1116, or

Reported as a deduction on line 6 of Schedule A

A taxpayer can’t claim a foreign tax credit or deduction for taxes paid on foreign earned income that was also excluded on Form 2555 or Form 2555-EZ.

U.S. citizens must report their worldwide income; so, taxpayers living or working outside the United States must file a U.S. income tax return.

A taxpayer qualifies for the foreign earned income exclusion under IRC 911 if the taxpayer meets the requirements of having a "tax home" in a foreign country or countries and is either:

A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period (regardless of physical presence) which includes an entire taxable year; or

A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty with an applicable nondiscrimination clause and who is a bona fide resident of a foreign country for an uninterrupted period that includes an entire taxable year; or

A U.S. citizen or resident alien who has been physically present in a foreign country or countries for at least 330 days during any period of 12 consecutive months

Exceptions & meaning →

Note:¶

If the taxpayer has a partial tax year that falls within the qualifying period, the exclusion must be prorated for the partial year.

Exceptions & meaning →

U.S. Territories - General Information¶

The following is a list of U.S. territories:

American Samoa - AS

Commonwealth of the Northern Mariana Islands - CNMI

Guam - GU

Puerto Rico - PR

United States Virgin Islands - USVI

To qualify for certain tax benefits, the taxpayer must be a U.S. citizen or resident alien and a bona fide resident of U.S. territory for the entire tax year. A bona fide resident of one of these U.S. territories is an individual taxpayer who:

Does not have a tax home outside the relevant U.S. territory,

Does not have a closer connection to the United States or to a foreign country,

Meets the presence test. To satisfy the presence test for the entire year, the taxpayer must meet one of the conditions in the list below.

Present in the relevant U.S. territory for at least 183 days during the tax year,

Present in the relevant U.S. territory for at least 549 days during the three-year period consisting of the current taxable year and the preceding two tax years, provided the taxpayer was also present in the U.S. territory for at least 60 days during each tax year of the three-year period,

Present in the United States for no more than 90 days during the tax year,

Earned income (pay for personal services performed, such as wages, salaries or professional fees) from the United States of no more than $3,000 and was present for more days in the U.S. territory than the United States during the tax year.

No significant connection to the United States during the tax year, such as a permanent home, voter registration or spouse/minor child in the United States.

Exceptions & meaning →

Note:¶

It is often difficult to determine bona fide residency based on the test above. Therefore, for the purpose of processing income tax returns the following additional guidance is being given. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Exceptions & meaning →

Exception:¶

For members of the U.S. Armed Forces see paragraph (4) below. For spouses of U.S. servicemembers see paragraph (5) below.

Taxpayers that reside in any of the U.S. territories cannot claim the Earned Income Credit except in limited circumstances. Refer to EC 337 at IRM 3.22.3.249.1 and EC 338 at IRM 3.22.3.250.1.

The Servicemembers Civil Relief Act of 2003 (SCRA) provides special rules relating to a servicemember's residence for tax purposes. Under SCRA, a servicemember retains his or her jurisdiction of residence with the Department of Defense or equivalent for income tax purposes. A servicemember's residence is his or her "state of legal residence" (SLR), which is also known as home state, home of record, state of domicile, or state of residence. When the SLR is not a U.S. territory and the servicemember resides in a U.S. territory solely in compliance with military orders, the servicemember must file an income tax return with the IRS. When the SLR is a U.S. territory and the servicemember resides outside that territory solely in compliance with military orders, the servicemember must file an income tax return with the SLR territory. For further information, see Publication 570, Tax Guide for Individuals With Income from U.S. Possessions.

The Military Spouses Residency Relief Act of 2009 (MSRRA) provides special rules relating to civilian spouses of U.S. servicemembers for tax purposes. Under MSRRA, a civilian spouse of an active duty servicemember can choose to keep his or her prior residence or domicile for income tax purposes when accompanying the servicemember spouse who is relocating under military orders to a new military duty station in one of the 50 states, the District of Columbia, or a U.S. territory. Before relocating, the civilian and military spouse must have the same tax residence. For further information, See Pub 570, Tax Guide for Individuals With Income From U.S. Possessions. Bona fide residents of American Samoa and Puerto Rico who are civilian spouses of servicemembers who are stationed in one of the 50 states or the District of Columbia in compliance with military orders, have non-U.S. government income, are subject to U.S. withholding, and are claiming a refund of federal income taxes should follow the procedures in Notice 2010-30, Notice 2011-16, and Notice 2012-41.

Exceptions & meaning →

The American Jobs Creation Act of 2004¶

(AJCA) clarified and supplemented the U.S. tax rules dealing with U.S. territories for determining if a taxpayer is a bona fide resident of a U.S. territory and whether income is from a territory source or effectively connected with the conduct of a U.S. territory trade or business.

Residence Rules - In general, IRC 937(a) provides rules for determining whether a taxpayer is a bona fide resident of a U.S. territory.

Source Rules - In general, IRC 937(b) provides that the principles for determining whether income is U.S. source and whether income is effectively connected with the conduct of a United States trade or business are applicable for purposes of determining whether income is U.S. territory source and whether income is effectively connected with the conduct of a trade or business in a U.S. territory. The regulations also generally provide that under the "U.S. Income Rule" of IRC 937(b)(2):

Income from United States sources is not treated as income that is U.S. territory source or effectively connected with the conduct of a U.S. territory trade or business, and

Income that is effectively connected with the conduct of a United States trade or business is not treated as U.S. territory source or effectively connected with U.S. territory trade or business.

The regulations provide the following exceptions to these rules:

The regulations preserve the existing treatment of income from the sale of goods manufactured in a U.S. territory, which provides for the allocation of this income between U.S. territory sources.

The regulations provide that gains from the disposition of certain property by a United States citizen or resident who owned the property on the date they became a bona fide resident of the U.S. territory may not be treated as from sources within a U.S. territory. This special gain rule applies to the disposition of certain property such as stocks, bonds, debt instruments, and other property that is held for investment. However, the taxpayer may elect to split the source of gains from the disposition of appreciated property subject to this rule by using a market-to-market allocation for marketable securities and a time-based allocation for other property.

The regulations also provide certain anti-abuse rules for determining the source of dividends and interest from U.S. territory corporations.

Exceptions & meaning →

Form 8898 - Statement for Individuals Who Begin or End Bona Fide Residence in a United…¶

Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a United States Possession, is used to notify the IRS that an individual became or ceased to be a bona fide resident of a U.S. Territory.

The form must be filed by individuals who have worldwide gross income in the tax year greater than $75,000 and who:

Take a position for United States tax purposes that they became a bona fide resident of a U.S. territory after a tax year for which they filed a United States tax return as a citizen or resident of the United States, but not as a bona fide resident of the U.S. territory,

Are a citizen or resident of the United States and take the position for United States tax purposes that they ceased to be a bona fide resident of a U.S. territory after a tax year for which they filed an income tax return as a bona fide resident of a U.S. territory,

Take a position for United States tax purposes that they became a bona fide resident of Puerto Rico or American Samoa after a tax year for which they were required to file an income tax return as a bona fide resident of the United States Virgin Islands, Guam or the CNMI.

Exceptions & meaning →

American Samoa - General Information¶

American Samoa has its own separate and independent income tax system.

Bona fide residents of American Samoa are generally exempt from United States tax on their American Samoa source income.

United States Armed Forces - Bona fide residents of American Samoa include military personnel whose official home of record (i.e., SLR) is American Samoa. See instructions at IRM 3.22.3.9 above.

Exceptions & meaning →

American Samoa (AS) - Which Returns To File¶

Generally, returns will be filed with both the American Samoa (AS) and the United States. The income reported on each return depends on the taxpayer's residency status in American Samoa.

Bona Fide residents may have to file 2 returns: • AS with worldwide income • U.S. with worldwide income excluding AS income

Non-Bona Fide residents may have to file 2 returns: • AS with only AS income • U.S. with worldwide income

If the taxpayer is a United States citizen, resident alien or nonresident alien and a bona fide resident of AS during the entire tax year, they generally must file the following returns:

An AS tax return to report gross income from worldwide sources.

Send the return to: American Samoa Tax Office Executive Office Building First Floor Pago-Pago AS 96799

If there is no indication that the taxpayer is a bona fide resident of American Samoa, continue processing the return.

Exceptions & meaning →

Form 4563 - Exclusion of Income for Bona Fide Residents of American Samoa¶

Form 4563, Exclusion for Bona Fide Residents of American Samoa, is used to figure the amount of income from sources within American Samoa that may be excluded in accordance with IRC 931 from gross income on Form 1040.

This exclusion may be claimed if a taxpayer is a United States citizen, resident alien or nonresident alien and a bona fide resident of AS. Eligible taxpayers will file Form 1040 and:

Attach Form 4563, and

Report worldwide income

Income that can be excluded in accordance with IRC 931:

Income received from sources in AS, and

Income effectively connected with the conduct of a trade or business in AS.

Exceptions & meaning →

Caution:¶

Income received for services performed as an employee of the United States government or any of its agencies is not excluded from gross income under IRC 931.

If the taxpayer claims the exclusion in accordance with IRC 931, the following are examples of deductions and credits that will be limited on Form 1040:

The standard deduction

Certain itemized deductions such as medical and dental expenses, gifts to charity, and real estate taxes and mortgage interest on personal residence.

Exceptions & meaning →

Commonwealth of the Northern Mariana Islands (CNMI) - General Information¶

The CNMI has its own income tax system based partly on the same tax laws and tax rates that apply to the United States, and partly on local taxes imposed by the CNMI government.

In general, all individuals with income from the CNMI will file only one return, either with CNMI or the United States. The taxpayer's residency status under IRC 937(a) with respect to the CNMI determines which return they will file.

Exceptions & meaning →

Exception:¶

See below for procedures for active and reserve military members.

Bona Fide residents with worldwide income -- if properly filed with CNMI, a taxpayer will not have to file a return with the U.S.

Non-Bona Fide residents with worldwide income -- taxpayer is instructed to claim withholding from both U.S. and CNMI on a U.S. income tax return.

Taxpayers that reside in any of the U.S. territories cannot claim Earned Income Credit except in limited circumstances. Refer to IRM 3.22.3, EC 337 and EC 338.

Members of the U.S. Armed Forces who:

Qualify as a bona fide resident of the CNMI in a prior tax year, and are absent from the CNMI solely in compliance with military orders must file with CNMI

Did not qualify as a bona fide resident of the CNMI in a prior tax year, and are present in the CNMI solely in compliance with military orders must file with the IRS.

Exceptions & meaning →

CNMI - Which Returns To File¶

If the taxpayer is a United States citizen, resident alien or nonresident alien and a bona fide resident of the CNMI during the entire tax year, they must file their income tax return with the CNMI.

If the taxpayer is a United States citizen or resident alien and not a bona fide resident of the CNMI during the entire tax year, they must file their income tax return with the United States. The tax return will include:

Form 1040 reporting income from worldwide sources

All income tax withheld by either the United States or CNMI

Any credit for overpayment of income tax to either the United States or CNMI

Any payments of estimated tax to either the United States or CNMI

Payment of any balance of tax due

Form 5074 if the adjusted gross income is $50,000 or more for the tax year and gross income of $5,000 or more is from sources within the CNMI.

Exceptions & meaning →

Exception:¶

Military employees do not require a Form 5074.

If the taxpayer is a nonresident alien of the United States and not a bona fide resident of CNMI during the entire tax year, they must do the following:

File a CNMI income tax return to report only their CNMI source income.

Exceptions & meaning →

Note:¶

In this situation CNMI source income is any income received for services performed in CNMI, even if they were paid by the U.S. government.

A United States tax return (Form 1040-NR) to report U.S. source income.

Exceptions & meaning →

Processing Form 1040 With Income or Address From CNMI¶

If there is an indication that the taxpayer is a bona fide resident of CNMI, see IRM 3.22.3.9 and follow the instructions below:

SSPND 640 to send the return to Rejects to delete the DLN out of the system.

Prepare Form 3696-A to initiate Letter 86-C to inform the taxpayer that his/her return has been transshipped to the Division of Revenue and Taxation of CNMI for processing.

Send return to: Commonwealth of the Northern Mariana Islands Division of Revenue and Taxation P.O. Box 5234, CHRB Saipan, MP 96950

If there is no indication that the taxpayer is a bona fide resident of CNMI, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ continue processing the return allowing any withholding from CNMI.

Exceptions & meaning →

Form 5074 - Allocation of Individual Income Tax to Guam or the Commonwealth of the…¶

Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI), provides information to the United States so that the IRS can figure the individual income tax that is due to Guam or CNMI.

Taxpayers must file Form 5074 when all three of the following apply:

Taxpayer files a United States income tax return on Form 1040,

Taxpayer reports adjusted gross income of $50,000 or more, and

At least $5,000 of the gross income on their return is from Guam or CNMI sources

When Form 5074 is attached, Code & Edit will enter Audit Code "L" on the return.

Exceptions & meaning →

Note:¶

In this situation Guam source income is any income received for services performed in Guam, even if they were paid by the U.S. government.

A United States tax return (Form 1040-NR), to report U.S. source income.

Exceptions & meaning →

Processing Form 1040 With Income or Address From Guam¶

If there is an indication that the taxpayer is a bona fide resident of Guam, see IRM 3.22.3.9 and follow instructions below:

SSPND 640 to send the return to Rejects to delete the DLN out of Letter 86-C the system.

Prepare Form 3696-A to initiate to inform the taxpayer that his/her return has been transshipped to the Department of Revenue and Taxation of Guam

SSPND 640

Send the return to: Department of Revenue and Taxation Taxpayer Services Division P.O. Box 23607 GMF, GU 96921

If there is no indication that the taxpayer is a bona fide resident of Guam, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ continue processing the return.

Exceptions & meaning →

Form 5074 - Allocation of Individual Income Tax to Guam or the Commonwealth of the…¶

Form 5074 - Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI), provides information to the United States so that the IRS can figure the individual income tax that is due to Guam or CNMI.

Taxpayers must file Form 5074 when all three of the following apply:

Taxpayer files a United States income tax return on Form 1040,

Taxpayer reports adjusted gross income of at least $50,000 or more, and

At least $5,000 of the gross income on their return is from Guam or CNMI sources

When Form 5074 is attached, Code & Edit will enter Audit Code "L" on the return.

Then

Code & Edit did not edit Audit Code "L" ,

Enter "L" in Field 01ACD.

Section 02 is present,

If the taxpayer is a nonresident alien of the United States AND does NOT qualify as a bona fide resident of Puerto Rico, the taxpayer must file the following returns:

A Puerto Rican tax return to report income from Puerto Rican sources.

A United States tax return, Form 1040-NR, according to the rules for a nonresident alien, reporting only U.S. source and U.S. effectively connected income.

Exceptions & meaning →

Processing Form 1040 With Income or Address From Puerto Rico (PR)¶

If the taxpayer is filing Form 1040 with a PR address or PR income, continue processing the return if the taxpayer is a U.S. government employee, or reporting income from outside of PR (worldwide income), or notates IRC 933 anywhere on the return. Do not SSPND 640 to send the return back to the taxpayer.

If it appears the taxpayer is a bona fide resident of Puerto Rico (PR) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, follow the steps below if the instruction in paragraph (1) above doesn’t apply:

SSPND 640 to send the return to Rejects to delete the DLN out of the system.

For all tax years except TY 21 prepare Form 9143 and mail the return back to the taxpayer with the following narrative : "Since you appear to be a bona fide resident of PR with only PR income, you do not have a U.S. tax filing obligation. However, if you have self-employment income from Puerto Rico and/or you wish to claim the additional Child Tax Credit you must do so on a Form 1040-SS (sp) / Form 1040-SS. Otherwise, if you have not already done so, you should file a return with the Departamento de Hacienda, PO Box 9022501, San Juan, PR 00902-2501"

For TY 21 prepare Form 9143 and mail the return back to the taxpayer with the following narrative for TY 21: "Since you appear to be a bona fide resident of PR with only PR income, you do not have a U.S. tax filing obligation. However, if you have self-employment income from Puerto Rico and or you wish to claim the refundable Child Tax Credit you must do so on a Form 1040-SS (sp)/Form 1040-SS. Otherwise, if you have not already done so, you should file a return with the Departamento de Hacienda, PO Box 9022501, San Juan, PR 00902-2501"

Exceptions & meaning →

Note:¶

If the return was filed electronically, DO NOT print out copy of the return for the taxpayer. Prepare Form 9143 as indicated above.

If the return was previously rejected per (2) above and the taxpayer resubmits his/her return with no changes or indications as to why they are filing a Form 1040, follow the steps below:

SSPND 640 to send the return to Rejects to delete the DLN out of the system.

Prepare Form 9143 and mail the return back to the taxpayer with the following narrative: Usted no está obligado a radicar una planilla de impuestos de los EE.UU, ya que usted parece ser residente bona fide de PR y tiene ingresos solamente de PR. Sin embargo, si tiene ingresos del trabajo por cuenta propia de Puerto Rico y/o usted desea reclamar el Crédito tributario adicional por hijos, usted tiene que completar el Formulario 1040-SS (sp). De lo contrario, si usted no lo ha hecho, debe radicar una planilla con el Departamento de Hacienda, PO Box 9022501, San Juan, PR 00902-2501.

If there is no indication that the taxpayer is a bona fide resident of Puerto Rico (as indicated above), continue processing the return.

Exceptions & meaning →

United States Virgin Islands (USVI) - General Information¶

The USVI system of income taxation is based upon the United States Internal Revenue Code as amended. An important factor in USVI taxation is whether, during the entire taxable year, the taxpayer is a bona fide resident of USVI.

In general, a bona fide resident of the USVI pays tax only to the USVI.

A United States citizen or resident alien who is not a bona fide resident of the USVI, but has USVI source income, is required to pay the allocable portion of the tax to each jurisdiction.

Exceptions & meaning →

United States Virgin Islands - Which Returns To File¶

In general, bona fide residents of the USVI pay taxes only to the USVI. U.S. citizens or resident aliens (but not bona fide residents of the USVI) with USVI source income, pay a portion of tax to each jurisdiction:

Bona fide residents -- include your worldwide income on your USVI return. If properly filed with the USVI, a taxpayer will not have to file a return with the United States.

Exceptions & meaning →

Note:¶

Taxpayers who have income that is effectively connected net business income of more than $400 from a trade or business in USVI, must file Form 1040-SS with the United States to pay self-employment tax.

Non-bona fide residents with worldwide income -- taxpayer must file identical returns with USVI and the U.S. Form 8689 must be attached to both returns.

If the taxpayer is a United States citizen, resident alien, or nonresident alien and a bona fide resident of the USVI (as explained in IRM 3.22.3.9) during the entire tax year, and their gross income is less than $75,000 the taxpayer must file with the USVI and report worldwide income.

For taxable years ending before December 31, 2006, if the taxpayer is a United States citizen, resident alien, or nonresident alien and a bona fide resident of the USVI during the entire tax year, and their gross income is $75,000 or more the taxpayer must file with:

The USVI and report worldwide income and

If Form 8689 is attached, or there is an indication on the dotted portion of line 33 (TY19, line 19) of Form 1040 or Schedule 3, line 13 (TY19, line 14) that the taxpayer is either reporting taxes paid to the USVI or filing in compliance with Notice 2007-19 (zero return, taxpayer's name, address, TIN and signature), do not send these returns to the USVI. See IRM 3.22.3.9.6.1.3 below.

Form 8689 must be attached to take the credit for United States tax allocated to the USVI when the amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. The taxpayer should add lines 41 and 46 of Form 8689 and include that amount in the total portion of line 33 (TY19, line 19) of Form 1040. See IRM 3.22.3.263.2.2, EC 366, Form 8689 - Allocation of Income Tax to the U.S. Virgin Islands. SSPND 215 and correspond for Form 8689 when the amount claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Exceptions & meaning →

Form 1040 in Compliance With Notice 2007-19¶

If you can determine that the taxpayer is filing in compliance with Notice 2007-19, then process the return. Some indications could be:

Notation on the return "Notice 2007-19"

Zero tax return (no dollar entries)

Affirmation statement indicating filed a USVI Form 1040

Statement of gross income of $75,000 or more

Statement affirming the taxpayer's bona fide residency in the USVI along with a summary of facts on which the residency is based

Exceptions & meaning →

Processing Form 1040 Filed With the IRS in Compliance With Notice 2007-19¶

These returns must be hand carried from function to function.

Code & Edit is instructed to "X" all entries except:

Caption information

Computer Condition Code (CCC) and Return Processing Code (RPC)

Received Date

Exceptions & meaning →

Caution:¶

If the return includes both Notice 2007-19 and Form 8689, use only the instructions to process Form 1040 with Form 8689.

If data is present other than the caption information, CCC, RPC or received date, delete entries and/ or section(s).

Exceptions & meaning →

Note:¶

Always use the received date stamped by compliance.

Exceptions & meaning →

Form 1040 in Compliance with Notice 2007-31¶

The USVI Bureau Internal Revenue (BIR) will send to the IRS copies of the taxpayers' returns for 2006 and later when the taxpayer files a return with the USVI BIR and they meet each of the following conditions:

Bona fide resident of USVI

Gross income of $75,000 or more

The return will be only page 1 of Form 1040 and include a watermark "Filed due to VI Notice 2007-31" in the upper left corner of page 1 Form 1040.

Exceptions & meaning →

Processing Form 1040 in Compliance with Notice 2007-31¶

These returns must be hand carried from function to function. Code & Edit is instructed to "X" all entries except:

Caption information

RPC "L"

RPC "V"

Received Date

If data is present other than the caption information, RPC "L" and RPC "V" or received date, delete entries and/or section.

Exceptions & meaning →

Note:¶

DO NOT CORRESPOND or ISSUE Taxpayer Notice Codes (TPNC)

Exceptions & meaning →

Processing U.S. Virgin Islands (VI) Cover Over Program Form 1040¶

The Virgin Islands Bureau of Internal Revenue (BIR) sends Form 1040 tax return to the IRS that require special handling and editing, a process identified in Submission Processing as the VI Cover Over Program. These returns are batched together and hand carried to each function, including ERS.

Code & Edit is instructed to X all entries except:

Caption information

Special Processing Codes (SPCs), Computer Condition Codes (CCCs) and Return Processing Codes (RPCs)

Received Date

Follow these instructions when processing these returns in ERS:

Then

A U.S. address is entered in Section 01,

Delete the address.

Field 01SPC is blank,

GTSEC 01 and enter "B" in Field 01SPC.

Field 01CCC is blank,

GTSEC 01 and enter "3" , B, and "O" in Field 01CCC.

Exceptions & meaning →

Note:¶

CCC "3" must be entered first.

The received date is missing in Field 01RCD,

GTSEC 01 and enter the correct received date in Field 01RCD.

Exceptions & meaning →

Note:¶

Always use the USVI Received Date if present. If not present, use the signature date.

Field 01RPC is blank,

GTSEC 01 and enter B and L. in Field 01RPC. Also enter RPC K for Statute years.

Exceptions & meaning →

Note:¶

USVI Cover Over returns don’t require Statute review, but RPC K is required for the returns to close in ERS.

Entries are present in fields other than Section 01,

Delete the entries.

Don’t correspond or assign TPNCs on a VI Cover Over return. If an error code generates and a TPNC is required to resolve the error, assign TPNC 100 with the following literal instead of the TPNC specified in the error code instructions: "VI Cover Over return - Void Notice" .

Exceptions & meaning →

Form 1040-SS and¶

In PY24 Form 1040(PR) is historical and is replaced with Form 1040-SS (sp). For the remainder of this text Form 1040-SS (sp) will be referred to as Form 1040-SS; however, all correction procedures will apply equally to Form 1040-SS (sp) and Form 1040-SS. Form 1040-SS can be filed by a taxpayer residing in AS, CNMI, GU, PR and the USVI. Form 1040-SS is filed to:

Report net earnings from self-employment and pay self-employment taxes.

Pay any household employment taxes.

Claim excess Social Security taxes withheld.

Pay any employee Social Security and Medicare tax on unreported tips or uncollected employee Social Security and Medicare tax on tips or group term insurance.

Claim additional Child Tax Credit for TY 20 and prior. (Only if qualified bona fide resident of Puerto Rico with 3 or more qualifying children).

Claim refundable Child Tax Credit for TY 21 (Only if qualified bona fide resident of Puerto Rico).

Claim additional Child Tax Credit for TY 22 and later (Only if qualified bona fide resident of Puerto Rico with 1 or more qualifying children).

Claim the health coverage tax credit for TY 21 and prior. (Only if qualified bona fide resident of Puerto Rico)

Form 1040-SS is a 3 page return.

All Form 1040-SS are processed under FLC 21.

See chart below to determine Document Code and return due Date:

Form Filed

Document Code

Return Due Date

Form 1040(PR)/1040SS (sp)

15th day of the fourth month

Form 1040-SS

15th day of the fourth month

Exceptions & meaning →

Note:¶

If the Return Due Date falls on a weekend or legal holiday, the return will be due the first business day following the weekend or legal holiday. The return will be considered timely filed if received on the next business day following the weekend or legal holiday. See Exhibit 3.22.3-17 for current year return due dates.

Exceptions & meaning →

Form 1040-NR¶

are filed by:

Nonresident aliens who have United States source income or income effectively connected with a U.S. trade or business.

Nonresident aliens who are temporarily present in the United States

Dual-status taxpayers in the year of entry into or departure from the United States

Dual-status taxpayers in the year that status changed due to expatriation.

All Form 1040-NR are processed under FLC 20.

Income reported on Form 1040-NR is classified as either effectively connected with a United States trade or business or not effectively connected with a United States trade or business.

See Chart below to determine Document Code and Return Due Date:

Form Filed

Criteria

Document Code

Return Due Date

Form 1040-NR

Wages on line 1a (TY19, line 8)

15th day of fourth month

Form 1040-NR

No wages

15th day of the sixth month

Exceptions & meaning →

Note:¶

If the Return Due Date falls on a weekend or legal holiday, the return will be due the first business day following the weekend or legal holiday. See Exhibit 3.22.3-17 for current year return due dates.

Form 1040-NR must be transshipped to Kansas City Submission Processing Center (KCSPC)when any of the following conditions exist, SSPND 640:

TIN is an Employee Identification Number (EIN) formatted xx-xxxxxxx or

The name line has other than an individual's name (such as an estate or trust) or

Line 13b (TY19/TY18 Line 39) is $300 or $100 (Trust) or $600 (Estate) or

Taxpayer quotes IRC 642(b)(2)(c) and enters $4700 on line 13b ( TY22 - $4,400; TY20 and TY21 - $4,300; TY19 and TY18, $4,150 on line 39 ).

In some instances, the taxpayer may file a short period Form 1040-NR before the end of the tax year due to the date of final departure from the United States. These early filed returns must be processed as 202412 (calendar-year returns). SSPND 480 and attach Form 4227 to the return, notating "Hold for 2024 processing."

Exceptions & meaning →

Exception:¶

If the return is received prior to August 1, SSPND 640 and use Form 9143 to advise the taxpayer that they must refile in January.

When a refund Form 1040-NR has an address written on line 35e of Form 1040-NR that differs from the entity address, see the EC 260 instructions for manual refunds at IRM 3.22.3.193.6.

Rev. Rul. 68-500 allows Form 1040-NR to include a facsimile signature signed for the taxpayer by an agent. Accept the facsimile signature and process the returns that are signed for the taxpayer by an agent. (Attorney-in-Fact)

See IRM 3.22.3.14.1, Refund Schemes, for instructions on when to code Form 1040-NR refund returns with Computer Condition Code "O" (CCC O).

Exceptions & meaning →

Resident Alien - General Information¶

A taxpayer is a Resident Alien of the United States for tax purposes and must file Form 1040 if they meet either the "green card test" or the "substantial presence test" for the calendar year. If they do not meet either of these tests, they file Form 1040-NR, if applicable.

Exceptions & meaning →

Note:¶

If certain conditions are met, a nonresident alien may make a first year choice to be treated as a resident alien for part of the tax year.

Green Card Test is met when a taxpayer is a lawful permanent resident of the United States at any time during the calendar year and has been issued an alien registration card (Form I-551), also known as a "green card" . All references made throughout this IRM to "green card" include Form I-551 for all years after 1996. Form I-151 is only acceptable as proof of permanent residency for TY96 and prior. See 2512-001, International Tax Returns Job Aid.

To meet the Substantial Presence Test the taxpayer must be physically present in the United States on at least

31 days during the tax year of the return, and days during the 3 year period that includes the tax year of the return and the 2 years prior to the tax year of the return.

Exceptions & meaning →

Example:¶

Taxpayer is filing a 2023 tax return and was present in the United States 150 days in 2023, 150 days in 2022 and 150 days in 2021 the total days would be 225 days. See chart below:

Use the following table to determine Substantial Presence.

Substantial Presence Determination

The taxpayer will count each day they were present in the United States during the tax year of the return (If present in the United States 150 days in 2023, then 2023 = 150 days.), AND

Add 1/1 of the days they were present in the United States during the first year prior to the tax year of the return (If present in the United States 150 days in 2023, then 150/150 = 50 days for 2022. The days in the United States are 200 days. 150 days (for 20232) + 50 days (for 2022) = 200 days.), AND

Add 1/1 of the days they were present in the United States during the second year prior to the tax year of the return (If present in the United States 150 days in 2021 then 150/150 = 25 days for 2021. The total days in the United States for the three year period is 225 days. 150 days (for 2023) + 50 days (for 2022) + 25 days (for 2021) = 225 days.)

Exceptions & meaning →

Exception:¶

Certain exception apply to exempt an individual from being considered a U.S. resident under the substantial presence test. See Exhibit 3.22.3-7 for types of Visas.

Exceptions & meaning →

Nonresident Alien - General Information¶

Nonresident Aliens report only U.S. source income and income that is effectively connected with a U.S. trade or business on Form 1040-NR. U.S. source income is reported on Form 1042-S, Form W-2, Form 1099 series, Form 8805, Form 8288-A, Form SSA/RRB 1042-S, or statement of income and received from:

U.S. payer or

Foreign payers for services performed in the U.S.

Financial institutions because the account holder failed to provide the required information for the financial institution to report under FATCA

United States tax law exempts nonresident aliens from United States taxation on interest from deposits in United States bank accounts if such interest is not effectively connected with a U.S. trade or business.

Effectively Connected Income, after allowable deductions, is reported on page 1 of the Form 1040-NR and is taxed at graduated rates. These are the same rates that apply to U.S. citizens and residents.

Non-Effectively Connected Income is reported on Schedule NEC of Form 1040-NR and is taxed at a flat 30 percent rate or at a lower treaty rate if a tax treaty exists between the United States and the taxpayer's foreign country of residence, and no deductions are allowed against such income.

When a taxpayer performed services as an employee both inside and outside the United States, the taxpayer must allocate their compensation between the United States and non-U.S. sources.

Exceptions & meaning →

Note:¶

Only the U.S. source income is included on line 1a of Form 1040-NR as effectively connected wages.

Exceptions & meaning →

Form 1040-NR Country of Residence¶

Determine the country of permanent residence of a nonresident alien by using the taxpayer’s information on the return, in the following order:

Schedule OI, Line B Form 1040-NR

Schedule OI, Line A Form 1040-NR

Address from the Entity section of Form 1040-NR

Review of any attachments

Exceptions & meaning →

Scholarship or Fellowship Grants Income¶

When Scholarship or Fellowship Grants income is paid to a resident of a country with a tax treaty that exempts this type of income from taxation, the exempt income may be reported on line 1k (TY21 and prior 1c, Form 1040-NR) Form 1040-NR. See the instructions for verifying Scholarship or Fellowship Grants income treaty claims in EC 218 at IRM 3.22.3.168.2.2.1 (Form 1040-NR).

Exceptions & meaning →

Caution:¶

When it can be determined that the taxpayer's income is from an occupation other than student (Form W-2 issued from other than a qualified education institution, occupation area of the return indicates intern, technical supporter, doctor, etc.), do not allow the treaty claim for a Scholarship or Fellowship Grant.

When Scholarship or Fellowship Grant income is paid to a resident of a country without a tax treaty with the United States:

The income may not be exempted under a tax treaty.

The income must be reported on line 8r, Schedule 1 (TY21 and prior line 1b, Form 1040-NR).

For TY 21 and prior If the taxpayer is a "Degree Candidate" , amounts received from a qualified educational institute for education related expenses (books, fees, tuition) may be deducted on line 10c, Form 1040-NR.

. For TY 22 and later Degree Candidates may deduct amounts received from a qualified educational institute for education related expenses (books, fees, tuition) and report the net on line 8r, Schedule 1.

Exceptions & meaning →

Expatriation and Form 8854¶

Taxpayers that are subject to expatriation tax must attach Form 8854, Initial and Annual Expatriation Statement, to their regular filing of Form 1040 or Form 1040-NR, whichever is applicable, for the year of expatriation and in certain circumstances for subsequent years. Taxpayers may elect to defer all or a portion of the expatriation tax and may attach two hypothetical Form 1040 returns to Form 8854 to support their calculations. Taxpayers making this election must file Form 8854 annually up to and including the year in which the full amounts of deferred tax and interest are paid.

If Form 8854 is attached to a tax return, GTSEC 01 and enter Audit Code "K" in Field 01ACD. Continue to process the tax return with normal processing procedures.

Exceptions & meaning →

Note:¶

If a taxpayer indicates "Expatriation Return" on the tax return do not enter Audit Code K unless Form 8854 is attached.

Exceptions & meaning →

Note:¶

Process a Form 1040-NR as dual-status if the taxpayer identifies the return as a "Dual-Status Return" and attached a Form 8854.

Exceptions & meaning →

Community Property - General Information¶

Taxpayers that are subject to the community property laws of a foreign country, a United States state, or a United States territory, generally must follow those laws to determine the income of each taxpayer for United States tax purposes. However, they must disregard certain community property laws if:

Both taxpayers are nonresident aliens, or

One taxpayer is a nonresident alien and the other taxpayer is a United States citizen or resident and they do not choose to be treated as United States residents (as explained in Chapter 1 under Nonresident Spouse Treated as a Resident). In these cases, both taxpayers must report community income as explained below.

Earned Income of each taxpayer, other than trade or business income and a partner's distributive share of partnership income, is treated as the income of the taxpayer whose services produced the income. That taxpayer must report all on a separate tax return.

Trade or business income, other than a partners’ distributive share of partnership income, is treated as the income of the person who exercises substantially all of the management and control over the trade or business. That taxpayer must report all on a separate return.

Partnership income (or loss). A partner's distributive share of partnership income is treated as the income (or loss) of the partner. The partner must report all of it on a separate tax return.

Income derived from the separate property of the taxpayer (and which is not earned income, trade or business income, or partnership distributive share income) is treated as the income of that taxpayer. That taxpayer must report all on a separate tax return. Use the appropriate community property law to determine what is separate property.

All other community income is treated as provided by the applicable community property laws.

Exceptions & meaning →

Note:¶

If a determination cannot be made, SSPND 370 for Examination review.

For additional information see EC 260 at IRM 3.22.3.198.5

Exceptions & meaning →

Tax Treaties - General Information¶

The United States has income tax treaties (conventions) with many foreign countries. Under these treaties, residents of foreign countries are taxed at a reduced rate, or are exempt from United States income taxes on certain items of income they receive from sources within the United States. These reduced rates and exemptions vary among countries and with specific items of income. In certain limited circumstances, resident aliens may be entitled to treaty benefits.

Tax treaties may, under certain circumstances, permit foreign individuals who are residents of the treaty country to visit the United States, practice their profession and earn income (sometimes in limited amounts) for a limited period of time without having to pay United States tax.

Tax treaty tables are found in this IRM at Exhibit 3.22.3-1, Tax Treaty Table 2, Compensation for Personal Services Performed in United States Exempt from U.S. Income Tax Under Income Tax Treaties, and Exhibit 3.22.3-3, Tax Treaty Table 1, Tax Rates on Income Other than Personal Service Income Under Chapter 3, Internal Revenue Code, and Income Tax Treaties.

Refer to IRM 3.22.3.17.3, Field 03TEX - Total Income Exempt by Treaty, for instructions for validating treaty exemption claims on Form 1040-NR. Refer to IRM 3.22.3.17.23, Field 03TNC Tax on Not Effectively Connected Income (NEC), for instructions for validating treaty tax rates.

Exceptions & meaning →

Types of Visas - General Information¶

A visa is assigned to an individual by the United States Citizenship and Immigration Services. See Exhibit 3.22.3-7.

The method of taxation of a visa holder depends primarily upon whether the individual is classed as a resident or a nonresident.

If the visa-holder is determined to be a nonresident alien, they are generally taxed on all United States Source income and on all income that is effectively connected with the conduct of a trade or business in the United States, unless specifically excluded under a U.S. tax treaty provision.

Resident aliens are generally taxed the same as citizens.

The following are types and definitions of visas most frequently encountered in tax return processing:

VISA

Definition of VISA

Diplomat or foreign government official

F-1

International Student

H-1B

Temporary Professional Worker

H-1C

Temporary Registered Nurse

H-2A

Temporary Agriculture Worker

H-2B

Temporary worker whose skills are needed in the U.S.

H-3

Trainee or participant in a special education exchange program

Representative of foreign information media, and their dependents

J-1 Student

Student in the U.S. under Exchange Visitor Program

J-1 Scholar

Researcher/Professor under Exchange Visitor Program

J-1 Au Pair

Individuals in the U.S. under the auspices of the U.S. Information Agency and the Designated Program Sponsor

M-1

Student at vocational schools

Q-1, Q2

Participant in an international cultural exchange program

Professional business worker admitted under United States - Canada Free Trade Act (CUSTA)

NAFTA allows temporary entry to certain dependents of TN visa holders

Professional business worker admitted under North American Free Trade Agreement (NAFTA)

Exceptions & meaning →

Note:¶

This is not an all-inclusive listing. There are other VISA types used to enter the United States.

Exceptions & meaning →

Survivor Benefit Annuities (SBAs) and Survivor Benefit Plans (SBPs)¶

A member of the United States military reaching retirement age may elect to receive, during his/her lifetime, a reduced United States military pension in order that his/her surviving spouse may continue to draw a United States military pension after his/her death. After the death of the United States military retiree, the pension which is paid to the retiree's surviving spouse is called a Survivor Benefit Annuity (SBA) or a Survivor Benefit Plan (SBP).

Exceptions & meaning →

Note:¶

The SBA or SBP income will be reported on a Form 1042-S with Income Code 15 from Office of Personnel Management. United States tax law holds that these benefits represent United States - sourced taxable income unless United States tax law is overridden by a tax treaty between the United States and the country in which the nonresident alien recipient is a resident.

SBAs/SBPs paid to nonresident aliens who reside in the following countries are not subject to U.S. tax under current treaties, provided they meet any requirements listed below or, if the country below is marked with an asterisk, they are a national of the country in which they reside:

List of Countries

Australia

Lithuania *

Austria

Luxembourg *

Bangladesh *

Malta*

Barbados

Mexico*

Belgium *

Morocco

Bulgaria *

Netherlands *

China *

New Zealand (must also be a citizen of New Zealand)

Cyprus

Norway

Czech Republic (decedent must have been resident of Czech Republic)

Pakistan

Denmark *

Portugal *

Egypt

Romania

Estonia *

Russia (must also be a citizen of Russia)

Finland *

Slovak Republic (decedent must have been a resident of Slovak Republic)

Germany *

Slovenia *

Hungary *

South Africa *

Iceland*

South Korea

India *

Spain *

Ireland *

Sri Lanka

Israel

Sweden (must also be a citizen of Sweden)

Italy *

Switzerland *

Jamaica* (decedent must have been a national of Jamaica at the time the services were rendered)

Thailand *

Japan *

Tunisia

Kazakhstan (must also be a citizen of Kazakhstan)

Turkey *

Latvia *

United Kingdom *(England, Northern Ireland, Scotland, and Wales) *

Venezuela *

SBAs/SBPs paid to residents and citizens of the following countries are taxable in the United States at the following tax rates under current tax treaties (or in the absence of a treaty):

Country Name

Percentage

Canada

15 percent

All other countries

30 percent

Exceptions & meaning →

Correspondence Procedures¶

Suspend international returns for first correspondence with Action Code 215. All missing required information must be requested when corresponding. Follow correspondence instructions in IRM 3.12.2, Individual Master File Error Resolution General Instructions, and IRM 3.12.3, Error Resolution, Individual Income Tax Returns, when specific instructions are not provided in IRM 3.22.3.

Exceptions & meaning →

Exception:¶

When IRM 3.12.3 has instructions to suspend with Action Code 211, Action Code 213, Action Code 224, or Action Code 225, always use Action Code 215. DO NOT use Action Code 224 for ACA Correspondence or Action Code 213 for Health Coverage Tax Credit, or Action Code 225 for EC 157 on international returns.

For Second Correspondence use Action Code 216. See IRM 3.22.3.282, Second Correspondence.

APO/FPO address

Taxpayer is qualified for an automatic two-month extension

Form 2555 dates indicate still there or continuing, and/or 1040 address is foreign

Form 2555 has an ending date later than the calendar year

Taxpayer is abroad

Taxpayer is overseas

Return indicates Treasury Regulation 1.6081-5(a)

Exceptions & meaning →

Special Procedures¶

This subsection addresses special situations which may not be covered in any other section of this IRM.

Exceptions & meaning →

Refund Schemes¶

Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for guidance on identifying possible refund schemes and frivolous and fraudulent returns.

Exceptions & meaning →

Amount Reported in Foreign Currency on U.S. Individual Tax Return¶

All amounts on U.S. individual tax returns are to be reported in U.S. currency only. If amounts on the tax return are reported in foreign currency, and Code & Edit has not converted to U.S. dollars, then convert the amounts using the official rate in effect at the end of the tax year of the return as reported on the exchange rate chart published by the U.S. Treasury for the tax period of the filer’s tax return (see https://fiscaldata.treasury.gov/datasets/treasury-reporting-rates-exchange/treasury-reporting-rates-of-exchange).

If a Taxpayer Notice Code (TPNC) is required to resolve an error on a return after foreign currency is converted to US dollars, also assign a TPNC 358.

Exceptions & meaning →

The "Location on the Form" applies to Form 1040-NR, Form 1040-SS (sp), and Form 1040-SS unless specified otherwise:

Form 1040-NR

Form 1040-SS (sp)/Form 1040-SS

Field Title

01PNC

Primary Name Control

01PS

Primary SSN

01SNC

Secondary Name Control

01SS

Secondary SSN

01NL1

Name Line 1

01NL2

Name Line 2

01ADD

Street Address

01C/S

City/State

01ZIP

ZIP Code

01TXP

Tax Period

01COU

Country Code

01SPC

Special Processing Code

01FSC

Filing Status Code

01CCC

Computer Condition Code

01EXC

Exemption Code Field

01RCD

Received Date

01FPC

Forms Processing Codes

01RPC

Returns Processing Code

01ACD

Audit Code

01DAC

Digital Assets Code

Exceptions & meaning →

Correction Procedures Section 01¶

The following describes correction procedures for Section 01 that are unique to processing International returns. Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for general Section 01 correction procedures.

Correct coding and transcription errors and misplaced entries on displayed fields.

Exceptions & meaning →

Field 01PS - Primary TIN¶

Return Filed Using Streamlined Filing Compliance Procedures with Missing Primary TIN (P-TIN) - Don’t correspond for a missing TIN on a Streamlined return. If the TIN is missing and not found after searching the return and after research, then suspend with Action Code 320 to Entity for assignment of an IRSN. When the return comes back from Entity with an IRSN follow the instructions in EC 005 at IRM 3.22.3.83.2 before entering RPC O.

Exceptions & meaning →

Field 01NL1 First Name Line - 35 Positions¶

Form 1040-NR can have only one name in the caption on page 1. If two names are present, determine if two incomes are present or if withholding documentation (Form W-2, Form 1042-S, etc.) is included for both names and follow these instructions.

Then

All income and withholding belong to one taxpayer,

Delete the name of the taxpayer who has no income or withholding from Field 01NL1.

Both taxpayers report income or withholding,

SSPND 215 and select paragraph S on Form 13900 for separate Form 1040-NR

The box on page 1, Form 1040-NR is checked Estate or Trust and, the first name line has the name of other than an individual (such as an estate, etc.) and there is an EIN instead of a SSN

SSPND 640 to transship return to Kansas City Submission Processing Center (KCSPC).

Exceptions & meaning →

Note:¶

If the Form 1040-NR has only one name on the return, but income or withholding from multiple persons, then see Special Procedures at IRM 3.22.3.14.4.

Exceptions & meaning →

Field 01NL2 Second Name Line - 35 Positions¶

The foreign country name, province, and foreign postal code are found on page 1 of the tax return.

Exceptions & meaning →

Exception:¶

For TY18, this information is found on Schedule 6, Form 1040.

Foreign Address - Field 01NL2 may be used when the entity is a foreign address. Field 01NL2 is limited to 35 characters.

Exceptions & meaning →

Caution:¶

Do not use Field 01NL2 for address information if the address will fit completely in Field 01ADD.

Exceptions & meaning →

Exception:¶

Note:¶

Field 01NL2 can include other mailing address information if it allows the complete address to be entered. Some mailing address information (states, provinces and territories) must be abbreviated. See Exhibit 3.22.3-6 and IMF Foreign Address Job Aid 2513-703.

If a domestic and foreign address are both present in the entity area of the return then enter the domestic address.

For TY18 only, if the address on page 1 of Form 1040 is for a foreign country, and no domestic address is present, enter the foreign address in Section 01. Don’t correspond for Schedule 6.

For Puerto Rico only, the following are different types of address formats:

Four-line address containing Name, Urbanization, House Number and Street Name, City, State and Zip Code.

Three-line address containing Name, House Number and Street Name, City, State and Zip Code.

Exceptions & meaning →

Exception:¶

Some areas in Puerto Rico do not have street names or repetitive house numbers. The urbanization name substitutes as the street name and becomes the primary identifier.

Exceptions & meaning →

Example:¶

Name, House Number and Urbanization Name, City, State and Zip Code.

Public Housing Projects (residenciales) without street names or repetitive apartment numbers. In these cases, the apartment number is the primary number and the public housing project becomes the street name.

Exceptions & meaning →

Example:¶

Name, Apartment Number and Residential Name, City, State and Zip Code.

Apartment Buildings and Condominiums with a physical (street) address containing Name, Building Name, Street Number Apartment Number, City, State and Zip Code.

Buildings without a physical address. Certain Condominiums are located on an unnamed street and may not have an assigned number. The name of the Condominium substitutes as the street name and the number 1 is used when no building number exists.

Numbered streets must always contain a street prefix.

House numbers - always place the house number before the street prefix. When the house number is an alpha numeric, do not use a hyphen to separate the letter from the number. See table below.

Incorrect Form

Correct Form

Calle 12 C-19

C19 Calle 12

A-17 Calle Ampapola

A17 Calle Ampapola

B-40 Calle 1

B40 Calle1

Post Office Box - always use PO Box to identify Post Office Boxes. Do not use the Spanish words.

Do not substitute the prefix Calle with the suffix street. Such substitutes render the address Undeliverable.

Urbanization -- denotes an area, sector or residential development within a geographic area. Commonly used in Puerto Rico urban areas, it is an important part of the addressing format, as it describes the location of a specific street. In Puerto Rico, identical street names and address number ranges can be found within the same Zip Code. In these cases, the urbanization name is the only element that correctly identifies the location of a particular address. Generally, the abbreviation URB is placed before the urbanization name.

Below is a table of examples of correct address formatting. The first line in the correct format column represents the entry for Field 01NL2. The second line represents the entry that goes into Field 01ADD:

Tax Return Address

Correct Format

Estancias Detortuger, 521 Calle Tulpia

Estancias Detortuger 521 Calle Tulpia

Bo Rocha Comunidad LaSalle HC 02 Box 12811

Puerto Nuevo 512 Calle Aragon

Cond. Hato Rey Plaza Jesus T Pinero #200 Apt 6-M

URB Cuidad Jardin de Bairoa 88 Calle Franca

When Field 01NL2 is required (deceased taxpayer, Power of Attorney (POA), minor, etc.) and a foreign address is present, follow the instructions at EC 260 to issue a manual refund. See IRM 3.22.3.193.6.

Exceptions & meaning →

Caution:¶

If any of the conditions exist in paragraph 2 of IRM 3.22.3.193.6do not issue a manual refund.

Exceptions & meaning →

Field 01ADD Street Address 35 Positions¶

A foreign address is any address outside of the 50 states of the United States and the District of Columbia.

The foreign country name, province, and foreign postal code are found on page 1 of the tax return.

Exceptions & meaning →

Exception:¶

For TY18, this information is found on Schedule 6, Form 1040.

A U.S. territory address must be entered using the same format as a domestic address as described in IRM 3.12.2, Individual Master File Error Resolution General Instructions. See IRM 3.22.3.15.5 for additional instructions for addresses in Puerto Rico.

If a domestic and foreign address are both present in the entity area of the return then enter the domestic address.

For TY18 only, if the address on page 1 of Form 1040 is for a foreign country, and no domestic address is present, enter the foreign address in Section 01. Don’t correspond for Schedule 6.

For an address in a foreign country Field 01ADD should contain the city, state, territory or province, and postal code, if present. Field 01NL2 may be used to allow for a more complete address (see Field 01NL2, IRM 3.22.3.15.5, for exceptions). When shortening the foreign address to fit the limitations of Field 01NL2 and Field 01ADD:

Do not remove a postal code.

If a postal code is present and the address can’t be shortened, delete the address information according to major (e.g., province) to minor (e.g., city, town) subdivisions of the address.

Exceptions & meaning →

Note:¶

Some countries prefer that the postal code follow and others prefer it precede the city or town name. Follow the order as edited on the return.

The following states, provinces and territories for the countries listed below must be abbreviated. See Exhibit 3.22.3-6 to enter the abbreviation:

Australia

Brazil

Canada

Cuba

Italy

Mexico

Netherlands

Exceptions & meaning →

Note:¶

Refer to the IMF Foreign Address Job Aid 2513-703 for additional abbreviations.

Exceptions & meaning →

Field 01C/S City/State - 24 Characters¶

The foreign country name, province, and foreign postal code are found on page 1 of the tax return.

Exceptions & meaning →

Exception:¶

For TY18, this information is found on Schedule 6, Form 1040.

A foreign country name entered in Field 01C/S must be in the required format. Twenty-four (24) characters may be entered in this field, which includes the slashes (/) and period. The required space in position 25 is not visible on the ERS screen.

If a domestic and foreign address are both present in the entity area of the return then enter the domestic address.

For TY18 only, if the address on page 1 of Form 1040 is for a foreign country, and no domestic address is present, enter the foreign address in Section 01. Don’t correspond for Schedule 6.

For foreign addresses, this field should contain ONLY the country in the correct format:

Then

Correction is needed on a foreign address,

Enter a slash (/), the country's name, followed by a slash (/) and a period (.). (i.e., /CHINA/.).

Exceptions & meaning →

Note:¶

The name of all countries must be spelled out, see Exhibit 3.22.3-4, unless it is listed in (3) below.

A foreign mail routing code is entered after the country,

Enter the routing code after the state or province in Field 01ADD.

Exceptions & meaning →

Reminder:¶

Leave Field 01ZIP blank. Do not enter the mail routing code in Field 01ZIP.

Exceptions & meaning →

Note:¶

Refer to Foreign Address Job Aid for additional information to enter a foreign address.

The following are examples of country names that too are long and the abbreviation below must always be used.

Exceptions & meaning →

Note:¶

This list is NOT all inclusive. Document 7475 shows the complete list of acceptable abbreviations.

Country

Abbreviation

Ashmore and Cartier Islands

/Ashmore and Cartier/.

Bosnia and Herzegovina

/Bosnia Herzegovina/.

British Indian Ocean Territory

/British Indian Oc Terr/.

British Virgin Islands

/British V I/.

Central African Republic

/Central African Rep/.

French Southern Antarctic Lands

/Fr Southern Antarctic/.

Heard Island and McDonald Islands

/Heard Is McDonald Is/.

Macedonia, the Former Yugoslav Republic of

/Macedonia/.

Saint Pierre and Miquelon

/St Pierre Miquelon/.

Saint Vincent and the Grenadines

/St Vincent Grenadines/.

Serbia and Montenegro

/Serbia Montenegro/.

South Georgia and the South Sandwich Islands

/S Georgia S Sandwich/.

Turks and Caicos Islands

/Turks and Caicos Is/.

For United States territory addresses: The following are valid state abbreviations for U.S. territories:

AS - American Samoa

MP - Commonwealth of Northern Mariana Islands

GU - Guam

PR - Puerto Rico

VI - United States Virgin Islands

Exceptions & meaning →

Note:¶

The tax period is

Form is

Then

202412 (current)

Form 1040-NR

Blank Field 01TXP (computer will generate 202412)

For fiscal or short year tax period

Form 1040-NR

Process as calendar year unless otherwise indicated

For a future tax period later than the current processing year and month

Form 1040-NR

Refer to ERS Lead Tax Examiner

202412 (current)

Form 1040-SS (sp) or Form 1040-SS

Blank Field 01TXP (computer will generate 202412)

For fiscal or short year tax period

Form 1040-SS (sp) or Form 1040-SS

Process as calendar year unless otherwise indicated

For a future tax period later than the current processing year and month

Form 1040-SS (sp) or Form 1040-SS

Refer to Lead Tax Examiner

Exceptions & meaning →

Field 01COU Country Code - 2 Positions¶

The Country Code Field is a two-position field which is designed to identify treaty countries whose residents are entitled to refunds of U.S. withholding on U.S. sourced income. The Country Code will assist in identifying erroneous claims for refunds of Social Security (Form SSA-1042-S) withholding. See Exhibit 3.22.3-4 for a listing of Country Codes.

Code & Edit edits the Country Code to the right of the Entity Section of Form 1040-NR. Determine the country of permanent residence using the information on the tax return in this order:

Line B, Schedule OI

Line A, Schedule OI

Address from the Entity section of Form 1040-NR

Review of any attachments

Then

The country entered on line B is "US" ,

Enter "XX" in Field 01COU.

The taxpayer indicates "Same" on line B and A,

Determine the Country Code by using the address information in the Entity section.

The country in which the taxpayer was a permanent resident can’t be determined and the taxpayer uses a United States address in the entity section of Form 1040-NR,

Enter "XX" in Field 01COU.

The country in which the taxpayer was a resident isn’t listed in Exhibit 3.22.3-4

Enter "XX" in Field 01COU.

Exceptions & meaning →

Field 01SPC Special Processing Code¶

A special processing code (SPC) is an alphabetic or numeric character entered by a Code & Edit examiner to alert the computer to a special condition or computation. The number of SPCs in a return may not exceed ten. These codes are used for campus processing and do not post to the Master File. This field was created as an overflow for return processing codes.

The list of Special Processing Codes is in IRM 3.12.2, Individual Master File Error Resolution General Instructions, Exhibit 3.12.2-4, Special Processing Code.

The valid SPC for Form 1040-NR are A, B, C, E, F, G, J, M, N, P, T, U, V, X, 2, 3, 6, and 9.

Exceptions & meaning →

Note:¶

SPC U is generated by Modernized E-File (MeF) on Form 1040-NR. See instructions in EC 215 at IRM 3.22.3.165.2

The valid SPC for Form 1040-SS (sp) and Form 1040-SS are B, J, M, T, V, 2, 3, and 9.

Exceptions & meaning →

Field 01FSC Filing Status Code - 1 Position¶

An entry in Field 01FSC is invalid if the Filing Status Code is other than:

Form 1040-NR all tax years: 1, 3, 5

Form 1040-NR TY17 and prior year only: 1, 3, 5, 6

Form 1040-NR:

And

Then

Single box is checked

TY20 and later

Code & Edit will edit FSC "1"

Married box is checked

TY20 and later

Code & Edit will edit FSC "3"

Qualifying Surviving Spouse box is checked

TY20 and later, Date of death is within 2 years prior to the tax period of the return and the taxpayer is a U.S. National, or resident of Canada, Mexico or South Korea, or student or business apprentice from India eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty,

Code & Edit will edit FSC "5"

Qualifying Surviving Spouse box is checked

TY20 and later, the taxpayer is not a U.S. National, or resident of Canada, Mexico or South Korea, or student or business apprentice from India eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty,

Code & Edit will edit FSC "1"

Qualifying Surviving Spouse box is checked

TY20 and later, Date of death is not within 2 years prior to the tax period of the return, (For TY23, spouse’s date of death is not 2021 or 2022)

Code & Edit will edit FSC "1"

Box 1 (TY17 and prior year only) is checked

TY17 and prior year return,

Exceptions & meaning →

Note:¶

Box 1 is reserved in TY19/TY18.

Code & Edit will edit FSC "1"

Box 2 is checked

TY19 and prior

Code & Edit will edit FSC "1"

Box 3 or 4 (TY17 and prior year only) is checked

A dual-status taxpayer cannot claim Head of Household or Married Filing Jointly on dual-status Form 1040 or Form 1040-NR.

Exceptions & meaning →

Note:¶

The taxpayer can elect to file a Married Filing Jointly (FSC 2) return and report worldwide income under IRC 6013(g) and IRC 6013(h). To qualify under IRC 6013(g), IRC 6013(h)one taxpayer must be a resident alien or U.S. citizen. See instructions in EC 256 at IRM 3.22.3.190.2.3.1 to determine filing status corrections on dual-status returns.

Exceptions & meaning →

Field 01CCC Computer Condition Code (CCC) - 10 Positions¶

The Computer Condition Code (CCC) is transcribed in Field 01CCC from the following area on the return:

Form 1040-NR - upper portion of the filing status

Form 1040-SS (sp) and Form 1040-SS - upper portion of Part I, Self-Employment Tax

Exceptions & meaning →

Note:¶

Some CCC are generated by the computer on the error record to indicate a special condition or computation and will post to the Master File

An entry in Field 01CCC is invalid if the Computer Condition Code is other than the following:

Form 1040-NR - 1, 2, 3, 4, 7, 8, B, C, E, F, G, H, J, L, M, N, O, P, R, U, V, W, X, Y, or Z.

Form 1040-SS (sp) or Form 1040-SS - 1, 3, 4, 7, 9, A, B, E, F, G, H, L, M, N, O, P, Q, R, U, V, W, X, Y, or Z.

Correction Procedures- Determine and enter the correct code, if needed.

A CCC "3" must be in the first position.

CCC "5" or "6" must always be preceded by CCC "G" .

SSPND 610, for renumbering, when a Form 1040-X has CCC "5" or "6" preceded by CCC "G" and is not in blocking series 990-999 or vice versa.

The list below describes Computer Condition Codes commonly used on international returns. For a complete list of Computer Condition Codes see IRM 3.12.2, Individual Master File Error Resolution General Instructions, Exhibit 3.12.2-2, Computer Condition Codes.

Code

Explanation

Edited by RICS RIVO to freeze overpayment of account at Master File

Freezes release of overpayment of account at Master File.

Form 1040-NR with Form 8833 (Treaty-Based Return Disclosure Under IRC 6114 or IRC7701(b))

Delete filing requirements for taxpayers who are not deceased

NRA spouse

Lump Sum Election is present

Reasonable cause for failure to pay tax by due date.

Taxpayer qualifies for a 2-month extension from due date for filing return (Form 1040 only)

Reasonable cause for underpayment of estimated tax.

Reasonable cause for delinquent filing.

Indicates no reply to correspondence and prevents generation of credit interest.

Causes return to generate EC 260 for ERS review (see IRM 3.22.3.193)

Exceptions & meaning →

Field 01RCD Received Date - 8 Positions¶

If an international Form 1040, Form 1040-NR, Form 1040-SS, or Form 1040-SS (sp) is transshipped to AUSPC from another IRS Campus, Territory Office, or IRS foreign post, take the following action:

Then

Code & Edit has not circled out the original IRS received date,

Circle out the original received date and leave the AUSPC received date.

There is no Austin Submission Processing Center (AUSPC) received date,

Enter the received date using the Julian Date from the DLN minus 10 days.

Refer to IRM 3.12.2, Individual Master File Resolution General Instructions, Field 01RCD, Received Date, for additional procedures on determining received dates.

If a received date is needed but not stamped or written on the return, and there’s no indication that the return was transshipped as described above, then determine the received dates by following the priorities in IRM 3.12.2.4.3.20 paragraph (9).

ALWAYS review each return for the words "Sent Back for Signature" or similar statement and a date present in the lower left-hand corner of the return. These are returns that were originally received missing a signature and were mailed back to the taxpayer from Receipt and Control. If a date and the notation, "Sent Back for Signature" is present, follow the instructions below for determining the received date:

If the return is Balance Due and a received date is present showing a date within 45 days of the "Returned for signature date stamp" , honor the date the return was sent back for signature. Delete any later received date(s) that may be present

If the return is Balance Due and a received date is present showing a date MORE than 45 days after the "Returned for signature date stamp" , honor the latest received date. Delete any earlier received date(s) that may be present.

If the return is a Refund, Credit Elect or Zero balance return, honor the latest received date. Delete any earlier received date(s) that may be present.

Exceptions & meaning →

Note:¶

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Exceptions & meaning →

Field 01EXC Exemption Codes¶

The exemption amount that can be claimed on an individual’s Form 1040-NR in TY 201812 and later is $0. Exemption coding (Field 01EXC and Field 94EXV) is retained for determining family size in certain calculations.

Exceptions & meaning →

Note:¶

TY18 and later, an exemption that is allowed based on country of residence is also an allowable dependent.

For TY18 and later Form 1040-NR, the exemption line 13b (TY19, line 39) is only to allow for exemptions when the form is filed by an Estate or Trust. These returns are processed at the Kansas City Submission Processing Center.

Form 1040-NR - Dependents (TY18 and later) and Exemptions (TY17 and prior) are limited by country of residence. The country of residence is determined by using taxpayer information on Schedule OI of Form 1040-NR or on other attachments.

Residents of South Korea can claim an exemption for self, spouse or children, however the children must live with the parents in the United States.

Residents of Canada, Mexico and United States National may claim exemptions for self, spouse, and/or other dependents.

Residents of India who are students or business apprentices may claim exemptions for self, spouse and/or dependents on the same basis as United States citizens.

All others are allowed only one exemption for self only. Delete the name control and TIN if present for all others than the primary taxpayer.

Form 1040 use exemption positioning as if the taxpayer lived in the United States. For example, if the taxpayer lists children who lived with them, enter that number of exemptions in position 3 regardless of the address on the return.

Form 1040-SS (sp)/Form 1040-SS the computer will generate Field 01EXC based on filing status.

Exceptions & meaning →

Caution:¶

Do not edit Field 01EXC on Form 1040-SS (sp)/Form 1040-SS.

Exceptions & meaning →

Field 01FPC Form Processing Code (FPC) - 10 Positions¶

Form Processing Codes (FPC) are edited to the right of line 7a on page 1 of Form 1040-NR, and to the right of line 7 on page 1 of Form 1040-SS.

An entry in Filed 01FPC is invalid if the Form Processing Code is other than what is listed below for each form type:

Form 1040-NR (Doc Code 72/73) and FPC is other than D, E, F, G, H, J, L, P, R, S W, X, 5, 8, or 9.

Form 1040-SS and FPC is other than G, Q, 8, or 9.

Exceptions & meaning →

Note:¶

If there is an FPC A on Form 1040-SS remove the A and continue processing.

Correction Procedures- Take the following actions to correct Field 01FPC:

Check for coding and transcription errors and correct, if needed.

Determine and enter the correct code.

Blank the field when the FPC written on the return is illegible and/or you cannot determine the correct FPC from the explanations in (4) below.

Form Processing Codes - The number of Form Processing Codes may not exceed ten. The codes and their meanings are listed below:

Code

Explanation

Form 8332 or Form 2120 attached

Form 4684 attached and Schedule A Line 15 significant

Form 8582 or Form 8582-CR is attached (Mef Only)

Form 1062 is attached or "1062I" is on line 17z, Schedule 2 or "1062NL" is on line 13z, Schedule 3.

Form 8938 attached

Form 8995-A Schedule A, Schedule B, Schedule C or Schedule D attached to the tax return.

Form 8886 attached

Form 8824 attached

Form 2106 attached

Form 8939 attached

Any of the following: Form 8990, Form 8992, Form 8994 attached

Schedule SE attached

Form 5471 OR 5471 Schedule G-1, OR another schedule supporting Form 5471 is attached to the return.

Form 8865 attached

Form 6251 attached

Form 14039 attached

Taxpayer attached a Spanish language version of the Identify Theft Affidavit (Form 14039SP) to any type of form within the 1040 family, and therefore a Spanish version of the CP01S notice will be issued.

Exceptions & meaning →

Field 01RPC Return Processing Code (RPC) - 8 Positions¶

Return Processing Codes (RPC) are edited as follows:

Form 1040-NR - horizontally in the bottom left margin of page 1

Form 1040-SS - near the right of line 5

An entry in Field 01RPC is invalid if the Return Processing Code is other than:

Form 1040-NR (Doc. Code 72/73) and RPC is other than A, B, C, D, F, G, H, I, J, K, L, N, O, Q, R, S, T, U, V, X, Y, Z, 1, 2, 3, 4, 6, or 7

Form 1040-SS (Doc. Code 26/27) - RPC other than E, K, L, O, Q, R, V, Y, or 6.

Correction Procedures- Take the following actions to correct Field 01RPC:

Check for coding and transcription errors and correct, if needed.

Determine and enter the correct code.

Blank the field when the RPC written on the return is illegible and/or you cannot determine the correct RPC from the explanations in (4) below.

Return Processing Codes - The number of Return Processing Codes may not exceed ten. The codes and their meanings are listed below:

Code

Explanation

Taxpayer has included IRC 965 claims or payments on the return.

Forces computer to bypass Error Code 118 Check.

Other Contributions equal to or greater than $500 are present on Schedule A, and Form 8283 or equivalent statement is attached.

Taxpayer enters "Died" in the SSN area for a dependent or EIC child and a supporting birth certificate (or death certificate with a date of birth) is present.

Total Tax exceeds 50 percent of Adjusted Gross Income.

Indicates the return has been cleared by Statute Control. Valid on prior year returns only.

Unemployment box is checked on Form 8962. (valid for TY 21 only)

Authenticated by Electronic Filing PIN (EFP). MeF ONLY - DO NOT ENTER OR DELETE.

Taxpayer is exempt from paying self-employment tax.

Form 8949 attached with code "Y" or "Z" in column (f)

Reserved

Edited on dual-status Tax Returns

1/2 SE Deduction bypass (1/2 SE Deduction is not valid for TY97 and prior). Also valid for TY08 and later

E-file Form 1040 Additional Child Tax Credit with Puerto Rico Address

Exceptions & meaning →

ERS Action Code - 3 Positions¶

ALWAYS SSPND with Action Code 215 for first correspondence with taxpayers in FLC 20 or 21.

The ERS Action Code indicates that specific information is missing, or the return is being suspended, or removed from processing. Error Resolution System (ERS) Action Codes will have sufficient detail to indicate if correspondence, in-house research, or other action(s) are required. For a complete listing of ERS Action Codes refer to the exhibit in IRM 3.12.2, Individual Master File Error Resolution General Instructions.

Code & Edit Tax Examiners assign Action Codes to numbered returns that are unprocessable, require research, correspondence, etc. The code is entered on the lower center margin of the return.

Correspondence Action Sheets (Form 3696-A, Form 6001, Form 13900, or Form 13975) used for initiating correspondence are attached by Code & Edit. For routing within the service center (In-House Research), codes and literals for each Action Code will generally be sufficient with no further explanation.

The Action Code assigned by Code & Edit is transcribed and kept as part of the Form 1040/Form 1040-NR record. It will always display as a Priority 1 error.

The presence of a valid Action Code except for Action Code 001, places the record in the suspense inventory, either Workable or Unworkable.

If the Action Code assigned by Code & Edit is invalid or incomplete, the "000" is used as a clear code to delete invalid or erroneous Action Codes when there is no reason to suspend the record.

Only one Action Code can be assigned at one time to a record.

Use Command Code SSPND, RJECT or NWDLN to enter an Action Code on the record, correct an invalid code, resuspend, or delete a record from ERS.

Entering a valid Action Code with SSPND Command Code clears the record from the screen and places it in either Workable or Unworkable Suspense.

An ERS Tax Examiner entering a valid Action Code with the RJECT Command Code deletes the record from ERS. Generally, the Service Center Control File (SCCF) is automatically updated for the deleted records. Only Action Codes 620, 630, 640, 650, 660, and 670 are valid with Command Code RJECT.

Entering an Action Code with the NWDLN Command Code deletes the record from ERS and establishes a new DLN for reinput.

Exceptions & meaning →

Field 01ACD Audit Codes - 10 Positions¶

This is edited by Code & Edit in the bottom right margin of Page 1.

The valid Audit Codes for Form 1040-NR (Doc. Code 72 and 73) are 2, 3, B, C, E, H, J, K, L, N, P, Q, R, S, U, V, W, X, and Z.

The valid Audit Codes for Form 1040-SS (Doc. Code 26 and 27) are 2, 3, B, H, J, K, L, U, X, and Z.

Invalid Conditions - are as follows:

For Form 1040-NR(Doc. Code 72/73) and the Audit Code is other than 2, 3, B, C, H, J, K, L, N, P, Q, S, U, V, W, X, or Z.

For Form 1040-SS (sp)/Form 1040-SS (Doc. Code 26/27) and the Audit Code is other than 2, 3, B, H, K, L, U, X, or Z.

Correction Procedures - Compare the field on the screen with the entry on the return. If edited or transcribed incorrectly, correct the screen display and the code entered in the lower right margin of page 1 of the return. If the code is illegible, use the following list to determine the correct Audit Code:

Code

Explanation

Form 8862 attached with Child Tax Credit/ACTC/ODC portion completed.

Form 8862 attached with American Opportunity Credit portion completed.

Form 8891 is attached

Form 926 is attached

Form 3520, Form 3520-A is attached

Form 5471 or Form 5472 attached

Schedule B, line 8 box marked "yes" .

Special Use.

Preparer identified by Compliance Division Criminal Investigation Staff

Refund Scheme Return/Refund

Disclosure Statement, Refund Scheme, Preparer Identified is attached

Form 1040-NR with Form 8854 attached

Joint committee case

IRC 6501(d), request for prompt audit or assessment.

Form 1040-NR filer occupation is entertainer or professional athlete.

Form 8862 attached with EIC portion completed

Return file contains an ITIN for the primary and/or secondary taxpayer. This code is entered by Examiners in ITIN. It is not for use by examiners in ERS.

Form 8919 Uncollected Social Security and Medicare Tax on Wages is filed with the return and is incomplete.

Exceptions & meaning →

Note:¶

Audit Code "D" is NOT valid for Form 1040-NR. Collections has agreed to discontinue editing Audit Code "D" on these returns until further notice. Delete Audit Code "D"

If the correct audit code cannot be determined delete the audit code from the screen.

Exceptions & meaning →

Note:¶

In addition, if the taxpayer claims the benefits of the Government Service treaty article listed in Exhibit 3.22.3-2 verify that the taxpayer holds an A1 or A2 visa and refer to the Exhibit to determine if the claim is valid.

All three (3) items listed above must be identified before validation of the treaty can be completed. Correspond for any missing information by selecting paragraph J on Form 13900. If no reply or an incomplete reply, disallow the treaty exemption.

Treaty income exemption claims are validated using the tax treaty table at Exhibit 3.22.3-1, Table 2. Compensation for Personal Services, and the table of exempt countries for government service employees at Exhibit 3.22.3-2. Include the guidance in the footnotes on the tax treaty table when validating treaty exemption claims. The footnotes are based on the specific provisions in each of the tax treaties.

Exceptions & meaning →

Example:¶

Per the tax treaty table, a resident of Australia may claim an exemption of $10,000 under Article 17 for public entertainment income for the tax year. The table has footnote "25" attached to the maximum amount on the table. Footnote 25 says that the exemption doesn’t apply if gross receipts of this type of income exceed the maximum amount. As a result, the exemption isn’t allowed when the total Article 17 income is over $10,000.

If the taxpayer provides a treaty article number, but doesn’t cite the subparagraphs, accept the treaty article without the subparagraphs if the country and amount are valid for that article number on the treaty tables.

Exceptions & meaning →

Field 03TWG Total Wages¶

Total Wages is transcribed in Field 03TWG from line 1z Form 1040-NR.

Refer to EC 201 in IRM 3.12.3Error Resolution, Individual Income Tax returns.

Exceptions & meaning →

Field 03TEI Tax Exempt Interest¶

Tax Exempt Interest is transcribed in Field 03TEI from the following lines:

TY20 and later- line 2a, Form 1040-NR

TY19 - line 9b, Form 1040-NR

≡ ≡ ≡ ≡ taxpayer's entry.

Exceptions & meaning →

Field 03INT Taxable Interest¶

Taxable Interest is transcribed in Field 03INT from the following lines:

TY20 and later - line 2b, Form 1040-NR

TY19 - line 9a, Form 1040-NR

Refer to EC 218 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Gross IRA Distribution is transcribed in Field 03GIR from the following lines:

TY20 and later - line 4a, Form 1040-NR

TY19 - line 16a, Form 1040-NR

Taxable IRA Distribution is transcribed in Field 03TIR from the following lines:

TY20 and later - line 4b, Form 1040-NR

TY19 - line 16b, Form 1040-NR

Refer to EC 218 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. In TY 2018, IRA amounts are combined with pensions and annuities and reported on line 17a and 17b.

Exceptions & meaning →

Fields 03GPA and 03TPA Gross and Taxable Pensions and Annuities¶

Gross Pensions and Annuities is transcribed in Field 03GPA from the following lines:

TY20 and later - line 5a, Form 1040-NR

TY19 - line 17a, Form 1040-NR

Taxable Pensions and Annuities is transcribed in Field 03TPA from the following lines:

TY20 and later - line 5b, Form 1040-NR

TY19 - line 17b, Form 1040-NR

Refer to EC 218 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 03CGL Schedule D Profit/Loss¶

Capital Gains is transcribed in Field 03CGL from the following lines:

TY20 and later - line 7, Form 1040-NR

TY19 - line 14, Form 1040-NR

Refer to EC 204 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 03ADD Additional Income¶

Additional Income is transcribed in Field 03ADD from the following line:

TY20 and later - line 8, Form 1040-NR

This field did not exist on TY19 Form 1040-NR, but for TY20 and later this field will be transcribed on Form 1040-NR.

Refer to EC 218 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 03TOT Total Income¶

Total Income is transcribed in Field 03TOT from the following lines:

TY20 and later - line 9, Form 1040-NR

TY19 - line 23, Form 1040-NR; line 7b Form 1040

. Refer to EC 218 in both IRM 3.22.3.168 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 03TAJ Total Adjustments¶

Total Adjustments is transcribed in Field 03TAJ from the following lines:

Income not effectively connected with a United States trade or business (NEC) reported on line 23a, Form 1040-NR, is supported by Schedule NEC, of Form 1040-NR and is taxed at a rate of 30 percent unless the taxpayer's country of residence has a different tax rate due to tax treaty provisions. Exhibit 3.22.3-3, Treaty Table 1. Tax Rates on Income Other than Personal Service Income Under Chapter 3, Internal Revenue Code, and Income Tax Treaties, displays the tax treaty rates applicable to NEC income.

Refer to IRM 3.22.3.233.3, Correction Procedures - EC 311, for instructions on validating treaty tax rates used on Schedule NEC.

Exceptions & meaning →

Field 03OTX Total Other Taxes¶

Total Other Taxes is transcribed in Field 03OTX from the following line:

TY20 and later - line 23b, Form 1040-NR

TY24 - line 6 Form 1040-SS

TY25 line 6e Form 1040-SS

This field did not exist on TY19 Form 1040-NR, but for TY20 and later this field will be transcribed on Form 1040-NR.

Refer to EC 333 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 03GTT Gross Transportation Tax¶

Gross Transportation Tax is transcribed in Field 03GTT from the following lines:

TY20 and later - line 23c, Form 1040-NR

TY19 - line 58, Form 1040-NR

Refer to EC 334 in IRM 3.22.3.247.

Exceptions & meaning →

Field 03TAX Total Tax¶

Total Tax is transcribed in Field 03TAX from the following lines:

TY24 and later - line 7, Form 1040-SS (sp)/ Form 1040-SS

TY20 and later - line 24, Form 1040-NR; line 6 Form 1040-SS (sp)/Form 1040-SS

TY19 - line 61, Form 1040-NR; line 6 Form 1040-SS (sp)/1040-SS

Refer to EC 334 in both IRM 3.22.3.247 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 03WH Withholding¶

Withholding is transcribed in Field 03WH from the following lines:

TY20 and later- line 25d, Form 1040-NR

TY19 - line 62a, Form 1040-NR

Field 03WH is for withholding from Form(s) W-2 and Form(s) 1099 and other forms.

Form 1040-NR also has other types of withholding claims. Refer to the instructions for Fields 0325E, 0325F and 0325G, Form 1040-NR.

Refer to EC 366 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 0325E Form 8805 Withholding¶

Form 8805 Withholding is transcribed in Field 0325E from the following lines:

TY20 and later - line 25e, Form 1040-NR

TY19 - line 62b, Form 1040-NR

Refer to EC 366 in IRM 3.22.3.264.4.4.

Exceptions & meaning →

Field 0325F Form 8288-A Withholding¶

Form 8288-A Withholding is transcribed in Field 0325F from the following lines:

TY20 and later - line 25f, Form 1040-NR

TY19 - line 62c, Form 1040-NR

Refer to EC 366 in IRM 3.22.3.264.4.5.

Exceptions & meaning →

Fields 0325G/0318B Form 1042-S Withholding¶

Form 1042-S Withholding is transcribed in Field 0325G (Form 1040-NR) from the following lines:

TY20 and later- line 25g, Form 1040-NR

TY19 - line 62d, Form 1040-NR

Refer to EC 366 in IRM 3.22.3.264.4.6

Exceptions & meaning →

Fields 03ESP Estimated Tax Payments¶

Estimated Tax Payments is transcribed in Field 03ESP from the following lines:

TY24 - line 8, Form 1040-SS.

TY20 and later - line 26, Form 1040-NR; line 7, Form 1040-SS

TY19 - line 63, Form 1040-NR; line 7, Form 1040-SS (sp)/Form 1040-SS

Refer to EC 366 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 03ACT Additional Child Tax Credit/Refundable Child Tax Credit¶

Additional Child Tax Credit/Refundable Child Tax Credit is transcribed in Field 03ACT from the following lines:

TY25 - Line 11b Form 1040-SS.

TY24 - line 10, Form 1040-SS.

TY20 through TY23 - line 28, Form 1040-NR; line 9, Form 1040-SS

TY19 - line 64, Form 1040-NR; line 9, Form 1040(PR)/Form 1040-SS

Refer to EC 344 in IRM 3.22.3.253.

Exceptions & meaning →

Balance Due Refund is transcribed in Field 03BDR and can be either negative (meaning a refund due to taxpayer) or positive (meaning amount due to IRS) and is transcribed from the following lines:

TY20 and later(Negative) - line 35a, Form 1040-NR; line 14a, Form 1040-SS (sp)/ Form 1040-SS

TY19 (Negative) - line 73a, Form 1040-NR; line 13a, Form 1040(PR)/Form 1040-SS

TY20 and later (Positive) - line 37, Form 1040-NR; line 16, Form 1040(PR)/Form 1040-SS

TY19 (Positive) - line 75, Form 1040-NR; line 15, Form 1040(PR)/Form 1040-SS

Refer to EC 370 in IRM 3.22.3.266.

Exceptions & meaning →

Field 03CEL Estimated Tax Credit Elect¶

Estimated Tax Credit Elect is transcribed in Field 03CEL from the following lines:

TY20 and later - line 36, Form 1040-NR; line 15, Form 1040-SS (sp)/Form 1040-SS

TY19 - line 74, Form 1040-NR; line 14, Form 1040(PR)/Form 1040-SS

Credit Election amount Field is used to indicate the amount of overpayment that the taxpayer wants to allocate toward the next year’s tax liability.

Exceptions & meaning →

Field 03ETP Pre-Determined Estimated Tax Penalty¶

Estimated Tax Penalty is transcribed in Field 03ETP from the following lines:

TY20 and later - line 38, Form 1040-NR

04KAM

1099-K Amount

0401

State Income Tax Refund

0403

Combined Schedule C Profit/Loss

0404

Other Gains/Losses

0405

Schedule E Profit/Loss

0406

Combined Schedule F Profit/Loss

0407

Taxable Unemployment Compensation

04SFG

Scholarship Fellowship Grant Amount

04OTI

Other Income

04EDU

Educator Expenses

04CBE

Reservist and Other Business Expense Amounts

04HSA

Health Savings Account Deduction

04MOV

Moving Expenses

04DSE

Deduction for Self-Employment (SE)Tax

04SEP

SE Retirement Plans Deductions

04HID

Self Employed Health Insurance

04PEW

Penalty on Savings Withdrawal

04IRA

IRA Deduction

04SLI

Student Loan Interest Deduction

04MSA

Archer Medical Savings Account

04ADJ

Other Adjustments

04TQT

Total Qualified Tips Income

04DQT

Qualified Tips Deduction Amount

04QOT

Total Qualified Overtime Compensation Income

04DOT

Qualified Overtime Compensation Deduction Amount

04LIP

Total Car Loan Interest Paid

04LID

Car Loan Interest Deduction Amount

04DFS

Scholarship or Fellowship Grants is transcribed in Field 04SFG from the following lines:

TY 22 and later Schedule 1, line 8r Form 1040-NR

TY20 and TY21- line 1b, Form 1040-NR

TY19 - line 12, Form 1040-NR,

Scholarships/Fellowships/Grants received are reported differently based on how they are reported to the taxpayer.

Taxpayers use Form 1040, line 1a, to report amounts from Form W-2 issued by a college or educational institution. These are amounts paid for services for teaching, research, etc. An entry on line 1a, Form 1040-NR, may be supported by one of the following documents: Form W-2 (issued by a college or an educational institution), Form 1042-S, Income Code 16 issued by a college or educational institution (Income Code 15 in TY 2014 and prior), A statement from the educational institution (on their letterhead) which identifies the income paid to the nonresident alien taxpayer as a Scholarship or Fellowship Grant.

Taxpayers use Schedule 1, line 8r, to report amounts from Form 1042-S, Income Code 16 issued by a college or educational institution

If the Scholarship or Fellowship Grant income is included in W-2 Wages (Field 03WG of Form 1040-NR), adjust the wages and enter the Scholarship or Fellowship Grants in Field 04SFG of Form 1040-NR.

Exceptions & meaning →

Caution:¶

If it can be determined that the taxpayer is claiming a tax treaty exemption of Scholarship or Fellowship Grant income see EC 218 instructions at IRM 3.22.3.168.2.2.1 (2) (Form 1040-NR).

Exceptions & meaning →

Field 04OTI Other Income¶

Other Income is transcribed in Field 04OTI from the following lines:

TY21 and later- Line 9, Schedule 1, Form 1040-NR

TY20 - line 8, Schedule 1, Form 1040-NR

Refer to EC 229 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 04HSA Health Savings Account Deduction¶

Health Savings Account Deduction is transcribed in Field 04HSA from the following lines:

TY21 and later - line 13, Schedule 1, Form 1040-NR

TY20 - line 12, Schedule 1, Form 1040-NR

TY19 - line 25, Form 1040-NR

Refer to EC 226 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 04MOV Moving Expenses¶

Moving Expenses is transcribed in Field 04MOV from the following lines:

TY21 and later - line 14, Schedule 1, Form 1040-NR

TY20 - line 13, Schedule 1, Form 1040-NR

TY19 - line 26, Form 1040-NR

Refer to EC 229 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 04DSE Deduction for Self-Employment Tax Amount¶

Deduction for Self-Employment Tax Amount is transcribed in Field 04DSE from the following lines:

Form 8959 Additional Medicare Tax is transcribed in Field 05AMT from the following lines:

TY 21 and later - line 11, Schedule 2, Form 1040-NR.

TY 20 and prior - not transcribed.

Refer to EC 331 in IRM 3.12.3Error Resolution, Individual Income Tax Returns and IRM 3.22.3.

Exceptions & meaning →

This field is transcribed in Field 05IDT from the following lines:

TY 21 and later - line 15, Schedule 2 Form 1040-NR

This field did not exist on TY19 Form 1040-NR, but for TY20 and later this field will be transcribed on Form 1040-NR.

Refer to EC 333 and EC 334 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 05LIR Form 8611 Recapture Tax¶

This field is transcribed from Form 1040-NR when tax from Form 8611 is notated as "LIHRC" on the following lines:

TY21 and later - line 16, Schedule 2, Form 1040-NR

TY20 - box c checked on line 8, Schedule 2, Form 1040-NR

TY19 - box b checked on line 60, Form 1040-NR

Refer to EC 333 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 05TAT Total Additional Taxes¶

This field is transcribed from the following lines:

TY21 and later - line 18, Schedule 2, Form 1040-NR

TY20 - box c checked on line 8, Schedule 2, Form 1040-NR

TY19 - box b checked on line 60, Form 1040-NR.

Refer to EC 333 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 05PYC Schedule 8812 Additional Tax¶

Schedule 8812 Additional Tax is valid for TY21 only and is transcribed in field 05PYC from the following line:

TY 21 - line 19, Schedule 2, Form 1040-NR; Line 5b Form 1040-SS (sp)/Form 1040-SS

Refer to EC 333 and 334 in both IRM 3.22.3 and IRM 3.12.3Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 05965 Section 965 Tax Installment¶

Section 965 Tax Installment is transcribed in Field 05965 from the following line:

TY 21 and later - line 20, Schedule 2, Form 1040-NR

TY20 - line 9, Schedule 2, Form 1040-NR

TY19 and prior - ERS input only

Refer to EC 188 for dual-status returns in IRM 3.22.3.151.

Exceptions & meaning →

Field 05TL Section 965 Tax Liability (ERS Only)¶

This field is an ERS only field for TY 2018 and later on Form 1040-NR. Refer to instructions in EC 188 for dual-status returns in IRM 3.22.3.151.

Exceptions & meaning →

Field 05301 Foreign Tax Credit¶

Foreign Tax Credit is transcribed in Field 05301 from the following lines:

TY 20 and later - line 1, Schedule 3, Form 1040-NR

TY19 - line 46, Form 1040-NR

Refer to EC 277 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Foreign Tax Credit cannot be claimed for income that was excluded because of a tax treaty.

Exceptions & meaning →

Field 05302 Credit for Child and Dependent Care Expenses¶

Credit for Child and Dependent Care Expenses is transcribed in Field 05302 from the following lines:

TY20 and later - line 2, Schedule 3, Form 1040-NR

TY19 - line 47, Form 1040-NR

Refer to EC 278 and EC 279 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 05304 Retirement Savings Contribution Credit¶

Retirement Savings Contribution Credit is transcribed in Field 05304 from the following lines:

TY20 and later - line 4, Schedule 3, Form 1040-NR

TY19 - line 48, Form 1040-NR

Refer to EC 286 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 0505A Residential Clean Energy Credit¶

Residential Clean Energy Credit from Form 5695 is transcribed in Field 0505A from the following lines:

TY23 line 5a, Schedule 3, Form 1040-NR

TY20 -22 - line 5, Schedule 3, Form 1040-NR

TY19 - line 50, Form 1040-NR

TY20 - line 9, Schedule 3, Form 1040-NR

TY19 - line 66, Form 1040-NR

For Form 1040-SS (sp) and Form 1040-SS, this is an ERS input only field (Field 05EXT) and is edited on the bottom right margin for, Form 1040-SS (sp) and Form 1040-SS.

Exceptions & meaning →

Field 05FUE Fuel Tax Credit from Form 4136¶

Fuel Tax Credit from Form 4136 is transcribed in Field 05FUE from the following lines:

TY21 and later - line 12, Schedule 3, Form 1040-NR

TY20 - line 11, Schedule 3, Form 1040-NR

TY19 - line 68, Form 1040-NR

Refer to EC 356 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 05RIC Form 2439 Regulated Investment Company Credit¶

Form 2439 Regulated Investment Company Credit is transcribed in Field 05RIC from the following lines:

TY21 and later - line 13a, Schedule 3, Form 1040-NR

TY20 - line 12a, Schedule 3, Form 1040-NR

TY19 - box a checked on line 69, Form 1040-NR

Refer to EC 358 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 05EYR Credit for Earlier Year Income Repayment¶

Credit for Earlier Year Income Repayment is transcribed in Field 05EYR from the following lines:

TY23 - line, 13b, Schedule 3; TY 22 - line 13d, Schedule 3, Form 1040-NR.

Exceptions & meaning →

Field 05OTH Other Payment or Credit Amount¶

This field is an ERS only field transcribed in Field 05OTH from the following lines:

TY23 and TY24 - line 13d and 13z, Schedule 3 Form 1040-NR

TY22 - line 13f and 13z, Schedule 3, Form 1040-NR

TY21 - line 13d, 13f and 13z, Schedule 3, Form 1040-NR

TY20 - line 12d, Schedule 3, Form 1040-NR

TY19 - box d checked on line 69, Form 1040-NR

Refer to EC 358 and 366 in both IRM 3.22.3 and IRM 3.12.3, Error Resolution, Individual Income Tax Returns.

Exceptions & meaning →

Field 05TYP Other Payment Credit Type Code¶

This field is an ERS only field transcribed in Field 05TYP from the following lines:

TY21 and later - left of line 13z, Schedule 3, Form 1040-NR

TY20 - line 12d, Schedule 3, Form 1040-NR

Field Location

0901L

Gross Receipts

Line 1

0918

Office Expenses

Line 18

0925

Utilities Expense

Line 25

0926

Schedule C Wages

Line 26

Exceptions & meaning →

Sections 14 and 15 - Schedule F¶

Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Sections 14 and 15 screen displays, invalid conditions and correction procedures for Schedule F, Profit or Loss From Farming. The sections are valid for Form 1040 and Form 1040-NR.

Exceptions & meaning →

Note:¶

Follow the correction procedures in IRM 3.22.3 before referring to IRM 3.12.2

Section 17 is Schedule SE for the primary taxpayer, and Section 18 is Schedule SE for the secondary taxpayer.

Exceptions & meaning →

Note:¶

For the remainder of this text Schedule SE will be referred to as Section 17; however, all correction procedures will apply equally to Sections 17 and 18.

Exceptions & meaning →

Field 1701A - Net Farm Profit/Loss¶

This field is transcribed from line 1a and is the amount of farm income from Schedule F and/or farm partnership income (TY22 and prior from Part III, Form 1040(PR) and Form 1040-SS). ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. If blank, enter amount from Schedule F or from Part III, Form 1040(PR) and Form 1040-SS.

Exceptions & meaning →

Field 1702 - Net Non-Farm Profit/Loss¶

This field is transcribed from line 2 and is the amount of Schedule C income and/or other Non-Farm self-employment income (TY22 and prior from Part IV, Form 1040(PR) and Form 1040-SS). ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. If blank, enter amount from Schedule C or from Part IV, Form 1040(PR) and Form 1040-SS.

Exceptions & meaning →

Field 17TE - Tentative Earnings¶

This field is transcribed from line 3 and represents the taxpayer's total of line 1a, line 1b and line 2.

If the taxpayer has entered "Exempt Notary" and an amount to the left of line 3 and has subtracted the notated amount from the total of line 1 and line 2 of Schedule SE, Code & Edit will "exclude" the "Exempt Notary" amount from the line 2 amount.

Exceptions & meaning →

Field 17MCD - SE Method Code¶

This code is edited by Code & Edit in the bottom center margin of Schedule SE and to the left of line 9, Form 1040(PR)/Form 1040-SS.

This field will appear invalid if transcribed as other than "1" or "2" . Code "0" is also valid, but is computer-generated and cannot be transcribed.

Compare the field on the screen with the entry on the return. Correct any editing or transcription error(s).For PY23 and forward following instructions found in IRM 3.12.2. For PY22 and prior If invalid check Lines 2 or 4 in Part VII and 4b in Part V of Form 1040(PR) and Form 1040-SS and code as follows:

And

Then

a) Line 4 has an amount,

Line 4 is larger than line 2,

Line 4b equals line 2 and line 4,

Line 2 is blank or zero,

Enter 1 in Field 17MCD.

b) Line 2 or line 4 has an entry,

All conditions in (a) for Code 1 are not met,

Enter 2 in Field 17MCD.

c) You can’t determine the code,

Section 34 and Section 35 consists of the following fields:

Form 2555

Field Title

34POD

Post of Duty Code

34BD1

Beginning Date Bona Fide Residence

34ED1

Ending Date Bona Fide Residence

34DIN

Declaration

3414R

Number of Days in United States - Bona Fide Residence

34BD2

Beginning Date Physical Presence

34ED2

Ending Date Physical Presence

3418R

Number of Days in United States - Physical Presence

3419

Wages

3422G

Total Allowances

3425

Meals and Lodging

3433

Housing Expenses

3436

Housing Exclusion

3442

Foreign Earned Income Exclusion

3445

Total Foreign Income/Housing Exclusion

3450

Housing Deduction

Exceptions & meaning →

Correction Procedures¶

The following describes correction procedures for Section 34 and Section 35.

Exceptions & meaning →

Field 34POD Post of Duty Code¶

Code & Edit will edit this code to the top center margin and it will be present on all Form 2555. See IRM 3.22.3.102.3 EC 025.

Exceptions & meaning →

Field 34BD1 Beginning Date Bona Fide Residence¶

This field is transcribed in YYYYMM format from Line 10, Part II (Form 2555).

See EC 148, EC 150 and EC 152 correction procedures.

Returns being filed electronically with Form 2555 may have missing or invalid dates in the four fields associated with that information, 34BD1, 34ED1, 34BD2, and 34ED2. Due to a programming problem the associated error codes, 148, 150 and 152 are not generating. As such, all Form 1040 returns that have a Form 2555 attached must have Section 34/35 examined to determine if date information is entered. If there are no dates or if there are invalid dates review the tax return. If valid dates are found enter in appropriate fields. If valid dates are not available, DLSEC 34/35 and assign the appropriate TPNC when EC 218 generates.

Exceptions & meaning →

Field 34ED1 Ending Date Bona Fide Residence¶

This field is transcribed in YYYYMM format from Line 10, Part II (Form 2555).

The ending date must be at least 365 days later than the beginning date and part of these days must fall within the tax year of the return. See EC 148, EC 150 and EC 152 for correction procedures.

Exceptions & meaning →

Caution:¶

If the taxpayer enters an ending date beyond the received date of the return, enter the received date as the ending date.

Returns being filed electronically with Form 2555 may have missing or invalid dates in the 4 fields associated with that information, 34BD1, 34ED1, 34BD2, and 34ED2. Due to a programming problem, the associated error codes, 148, 150 and 152 are not generating. As such, all Form 1040 returns that have a Form 2555 attached must have Section 34/35 examined to determine if date information is entered. If there are no dates or if there are invalid dates research EUP. If valid dates are found enter in appropriate fields. If valid dates are not available DLSEC 34/35 and assign the appropriate TPNC when EC 218 generates.

Exceptions & meaning →

Field 34DIN Declaration Indicator¶

This field is transcribed from the right margin of line 13b, Part II.

Field 34DIN can be blank or "4" .

Code & Edit will edit "4" if any of the following boxes are checked:

Line 13(a) - "YES" box checked

Line 13(b) - "NO" box checked

Line 15(c) - "YES" box checked

Line 15(d) - "YES" box checked

If the above boxes are not checked delete the entry.

Exceptions & meaning →

Part of the 12-month period must fall in the tax period of the return.

Exceptions & meaning →

Field 3418R Number of Days in United States on Business (Physical Presence)¶

The number of days is edited by Code & Edit and transcribed from the margin to the right of line 18.

Valid numbers are 001 through 366.

If invalid, verify the taxpayer's entry and overlay the screen display with the correct number.

Exceptions & meaning →

Field 3419 Form 2555¶

This amount is transcribed from Line 19 (Form 2555).

Exceptions & meaning →

Field 3422G Total Allowance¶

This amount is transcribed from line 22G. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Exceptions & meaning →

Field 3425 Meals and Lodging¶

This amount is transcribed from line 25. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Exceptions & meaning →

This amount is transcribed from Line 45 (Form 2555).

Exceptions & meaning →

Field 3450 Housing Deduction¶

This amount is transcribed from Form 2555, line 50. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

If blank, compute amount by adding lines 48 and 49 together and enter in Field 3450. Refer to IRM 3.22.3.174.2.1, Correction Procedures EC 229.

Exceptions & meaning →

Note:¶

The taxpayer may claim a one-year carryover Housing Deduction.

Exceptions & meaning →

Sections 40, 41 and 42 - Form 8814¶

Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Sections 40, 41 and 42 screen displays, invalid conditions and correction procedures for Form 8814, Parents’ Election to Report Child’s Interest and Dividends. These sections are valid for Form 1040 and Form 1040-NR.

Exceptions & meaning →

Sections 44 and 45 - Schedule H¶

Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Sections 44 and 45 screen displays, invalid conditions and correction procedures for Schedule H, Household Employment Taxes. Section 44 is valid for Form 1040, Form 1040-NR, and Form 1040-SS. Section 45 is valid for Form 1040, and Form 1040-SS

Exceptions & meaning →

Caution:¶

If there are only two digits, the transcriber will enter a zero in the first position; only one digit, the transcriber will enter zeroes in the first two positions.

The taxpayer is allowed to enter a specified percentage under the appropriate tax rate.

Code & Edit should always edit this field using three digits:

If the taxpayer enters

Then Code & Edit will Edit

9 percent

090

20 percent

200

27.5 percent

275

See EC 311 at IRM 3.22.3.233.3 for correction procedures.

Exceptions & meaning →

Field 46TR2 Tax Rate Income Taxpayer Percentage¶

This field is transcribed from Column (d) 2 as a percentage using three digits.

Exceptions & meaning →

Caution:¶

If there are only two digits, the transcriber will enter a zero in the first position; only one digit, the transcriber will enter zeroes in the first two positions.

The taxpayer is allowed to enter a specified percentage under the appropriate tax rate.

Code & Edit should always edit this field using three digits:

If the taxpayer enters

Then Code & Edit will edit

9 percent

090

20 percent

200

27.5 percent

275

Refer to IRM 3.12.2, Individual Master File Error Resolution General Instructions, for Sections 48 and 49 screen displays, invalid conditions and correction procedures for Form 8606, Nondeductible IRAs. Section 48 is valid for Form 1040 and Form 1040-NR. Section 49 is valid for Form 1040.

Exceptions & meaning →

Sections 52 and 53 - Form 8889¶

Clear Code

01FSC

Filing Status Code

01TXP

Tax Period

01SPC

Special Processing Code

01CCC

Computer Condition Code

01FPC

Form Processing Code

01RPC

Return Processing Code

Exceptions & meaning →

Error Code 003 - Check Digits/P-SSN¶

EC 003 generates when Check Digit/P-SSN errors.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns. EC 003, for invalid condition and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 003¶

These following fields are displayed for EC 003.

1040-NR

1040-SS (sp)/1040-SS

Field Title

01PNC

Primary Name Control

01PS

Primary SSN

01SS

Secondary SSN

01NL1

Name line 1

Exceptions & meaning →

Error Code 004 - Name Control Mismatch/National Accounts Profile (NAP)¶

EC 004 generates when Name Control Mismatch (NAP) errors.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 004, for invalid conditions and correction procedures. For returns filed using the Streamlined Filing Compliance Procedures see IRM 3.22.3.82.2.

Exceptions & meaning →

Fields Displayed - EC 004¶

The following fields are displayed for EC 004.

1040-NR

1040-SS (sp)/1040-SS

Field Title

Clear Code

01PNC

Name Control

NAP Entity Index File (EIF) Name Control Underprint

01PS

Social Security number (SSN)

01NA1>

NAP Access Indicator

01NR1>

NAP EIF Response Indicator

01NL1

Name line 1

01NL2

Name line 2

01ADD

Address

01C/S

City/State

01ZIP

Zip Code

01TXP

Tax Period

01COU

Country Code

01FSC

Filing Status Code

01CCC

Computer Condition Code

01RPC

Return Processing Code Field

01EXC

Exemption Code

94EXV

Exemption Verified Code Field

03BDR

Balance Due/ Refund

Balance Due/Overpayment Computer

03BDR>

Balance Due/ Overpayment Taxpayer Computer

Exceptions & meaning →

Returns Filed Using the Streamlined Filing Compliance Procedures (EC 004)¶

The primary taxpayer must have a valid TIN to use the Streamlined Filing Compliance Procedures, either a Social Security number (SSN) or individual taxpayer identification number (ITIN). A TIN assigned by the IRS (IRSN) is not a valid TIN. Follow the procedures for Error Code 004 at IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 004. If a valid TIN is not found for the taxpayer, follow these procedures before entering RPC O and CCC Y:

Remove any edits of SPC "P" , CCC "M" , CCC "R" , and CCC "P" . Edit CCC "N" if required, see IRM 3.22.3.13.

After removing these codes enter RPC "O" and CCC "Y" and continue with normal processing.

Exceptions & meaning →

Correction Procedures - Form 1040-NR (EC 004)¶

Go to the bottom of the screen and transmit.

Correct coding and transcription errors and misplaced entries in displayed fields.

Unlike Form 1040, which is filed only by individuals, Form 1040-NR is filed by individuals (IMF) and by estates and trusts (BMF). On an individual’s Form 1040-NR, the “identifying number” for the filer is a SSN or ITIN. For an estate or trust, the identifying number is the estate or trust’s employer identification number (EIN).

Some estate and trust Form 1040-NR are processed incorrectly as IMF returns because the returns were prepared and mailed to the Austin campus by the estate or trust with the EIN written in the format of a SSN. To ensure that the return is processed correctly, additional research is required when applying the EC 004 instructions in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 004, to Form 1040-NR.

Research for the correct TIN on Form 1040-NR using both the SSN (xxx-xx-xxxx) and the EIN (xx-xxxxxxx) formats with command code INOLE. If the INOLE record for the EIN matches the entity of the return, then correct the TIN on the return and follow the procedures in Field 01NL1 at IRM 3.22.3.15.4 for suspending the return to Rejects for transshipment to the Kansas City Submission Processing Center (KCSPC). If not an EIN, then process as normal using the EC 004 instructions in IRM 3.12.3.

Exceptions & meaning →

Error Code 005 - Primary Name Control/TIN Match on Invalid Side¶

EC 005 generates when no account is found on the NAP.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns for invalid conditions and correction procedures. For returns filed using the Streamlined Filing Compliance Procedures see IRM 3.22.3.83.2.

Exceptions & meaning →

Fields Displayed - EC 005¶

The following fields are displayed for EC 005.

1040-NR

1040-SS (sp)/1040-SS

Field Title

Clear Code

01PNC

Name Control

Name Control Underprint

01PS

SSN

01NA1>

NAP Access Indicator

01NR1>

NAP EIF Response Indicator

01SNC

Secondary Name Control

Secondary NAP Name Control

01SS

Secondary TIN

01NA2>

Secondary NAP Access Indicator

01NR2>

Secondary TIN NAP EIF Response Indicator

01NL1

Name line 1

01NL2

Name line 2

01ADD

Address

01C/S

City/State

01ZIP

Zip Code

01TXP

Tax Period

01COU

Country Code

01FSC

Filing Status Code

01CCC

Computer Condition Code

01RPC

Return Processing Code

01EXC

Exemption Code

94EXV

Exemption Code Verified Field

03BDR

Balance/Due Overpayment

Balance/Due Overpayment Computer

03BDR>

Balance/Due Refund Taxpayer Computer

Exceptions & meaning →

Returns Filed Using the Streamlined Filing Compliance Procedures (EC 005)¶

The primary taxpayer on a return filed using the Streamlined Filing Compliance Procedures must have a valid TIN, either a Social Security number (SSN) or individual taxpayer identification number (ITIN). A TIN assigned by the IRS (IRSN) is not a valid TIN. Follow the procedures for Error Code 005 in IRM 3.12.3, Error Resolution, Individual Tax Returns, EC 005. If a valid TIN is not found for the taxpayer, follow these procedures before entering RPC O and CCC Y:

Remove any edits of SPC "P" , CCC "M" , CCC "R" , and CCC "P" . Edit CCC "N" if required, see IRM 3.22.3.13.

After removing these codes enter RPC "O" and CCC "Y" and continue with normal processing.

Exceptions & meaning →

Error Code 006 - First-Time Filers¶

EC 006 generates when processing returns for first-time filers.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 006 for invalid condition and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 006¶

The following fields are displayed for EC 006.

1040-NR

1040-SS (sp)/ 1040-SS

Field Title

Clear Code

01PNC

Name Control

NAP EIF Name Control Underprint

01PS

SSN

01NA1>

NAP Access Indicator

01NR1>

NAP EIF Response Indicator

01SNC

Secondary Name Control

Secondary NAP Name Control

01SS

Secondary TIN

01NA2>

Secondary NAP Access Indicator

01NR2>

Secondary TIN NAP EIF Response Indicator

01NL1

Name line -1

01NL2

Name line - 2

01ADD

Address

01C/S

City/State

01ZIP

Zip Code

01TXP

Tax Period

01COU

Country Code

01FSC

Filing Status Code

01CCC

Computer Condition Code

01EXC

Exemption Code

94EXV

Exemption Verified Code Field

Exceptions & meaning →

Error Code 007 - Address Information Different¶

EC 007 generates when an account is present at Master File but the address information is different from the return.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 007 for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 007¶

The following fields are displayed for EC 007

1040-NR

1040-SS (sp)/1040-SS

Field Title

Clear Code

01PNC

Name Control

Name Control Underprint

01PS

SSN

01NA1>

NAP Access Indicator

01NR1>

NAP EIF Response Indicator

01SNC

Secondary Name Control

Secondary NAP Name Control

01SS

Secondary TIN

01NA2>

Secondary NAP Access Indicator

01NR2>

Secondary TIN NAP EIF Response Indicator

01NL1

Name Line - 1

01NL2

Name Line - 2

01ADD

Address

01C/S

City/State

01ZIP

Zip Code

01TXP

Tax Period

01COU

Country Code

01FSC

Filing Status Code

01CCC

Computer Condition Code

01EXC

Exemption Code

94EXV

Exemption Code Verified Field

Exceptions & meaning →

Error Code 008 - Marital Filing Status Change¶

EC 008 generates when there is a change in filing status.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 008 for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 008¶

The following fields are displayed for EC 008.

1040-NR

1040-SS (sp)/1040-SS

Field Title

Clear Code

01PNC

Name Control

Name Control Underprint

01PS

SSN

01NA1>

NAP Access Indicator

01NR1>

NAP EIF Response Indicator

01SNC

Secondary Name Control

Secondary NAP Name Control

01SS

Secondary TIN

01NA2>

NAP Access Indicator

01NR2>

NAP EIF Response Indicator

01NL1

Name Line 1

01NL2

Name Line 2

01ADD

Address

01C/S

City/State

01ZIP

Zip Code

01TXP

Tax Period

01COU

Country Code

01FSC

Filing Status Code

01NPF>

NAP Previous Filing Status

01CCC

Computer Condition Code

01EXC

Exemption Code

94EXV

Exemption Code Verified Field

Exceptions & meaning →

Error Codes 009 - Entity Data and Check Digit/Name Control¶

EC 009 generates when there is mismatch for the check digits or name control.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 009 for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 009¶

The following fields are displayed for EC 009.

1040-NR

1040-SS (sp)/1040-SS

Field Title

01PNC

Primary Name Control

01NL1

Name Line 1

01NL2

Name Line 2

01ADD

Address

01C/S

City/State

01ZIP

ZIP Code

Exceptions & meaning →

Error Code 010 - Missing Spouse or Dependent TIN¶

EC 010 generates when a secondary or dependent TIN is missing, or the TIN of a qualifying person for Child and Dependent Care Credit or EIC is missing.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 010 for invalid conditions.

Exceptions & meaning →

Fields Displayed - EC 010¶

The following fields are displayed for EC 010.

1040-NR

Field Title

Clear Code

01FSC

Filing Status Code

01TXP

Tax Period

01EXC

Exemption Code

94EXV

Exemption Code Verified

01RPC

Return Processing Code

01SPC

Special Processing Code

01SNC

Secondary Name Control

Secondary NAP Name Control

01SS

Secondary TIN

01NA2>

Secondary NAP Access Indicator

01NR2>

Secondary TIN NAP EIF Response Indicator

02DS1

Dependent 1 SSN

02DN1

Dependent 1 Name Control

Dependent 1 NAP Name Control

02NP1>

Dependent 1 NAP Access Indicator

02DR1>

Dependent 1 NAP EIF Response Indicator

02DS2

Dependent 2 SSN

02DN2

Dependent 2 Name Control

Dependent 2 NAP Name Control

02NP2>

Dependent 2 NAP Access Indicator

02DR2>

Dependent 2 TIN NAP EIF Response Indicator

02DS3

Dependent 3 SSN

02DN3

Dependent 3 Name Control

Dependent 3 NAP Name Control

02NP3>

Dependent 3 NAP Access Indicator

02DR3>

Dependent 3 TIN NAP EIF Response Indicator

02DS4

Dependent 4 SSN

02DN4

Dependent 4 Name Control

Dependent 4 NAP Name Control

02NP4>

Dependent 4 NAP Access Indicator

02DR4>

Dependent 4 TIN NAP EIF Response Indicator

02DTR

Dependent SSNs Not Required

21CN1

Dependent 1 Child Care Name Control

Dependent 1 Child Care NAP name Control

21NA1>

Dependent 1 Child Care NAP Access Indicator

21NR1>

Dependent 1 Child Care NAP EIF Response Indicator

21DS1

Dependent 1 Child Care SSN

21CN2

Dependent 2 Child Care Name Control

Dependent 2 Child Care NAP Name Control

21NA2>

Dependent 2 Child Care NAP Access Indicator

21NR2>

Dependent 2 Child Care NAP EIF Response Indicator

21DS2

Dependent 2 Child Care SSN

21CSR

Dependent Child Care SSN Requirement

Exceptions & meaning →

Returns Filed Using the Streamlined Filing Compliance Procedures¶

The secondary taxpayer must have a valid TIN to use the Streamlined Filing Compliance Procedures, either a Social Security number (SSN) or individual taxpayer identification number (ITIN). A TIN assigned by the IRS (IRSN) is not a valid TIN. If a valid TIN is not found for the secondary taxpayer, follow these procedures before entering 94EXV.

Remove any edits of SPC "P" , CCC "M" , CCC "R" , and CCC "P" . Enter CCC "N" if required, see IRM 3.22.3.13.

After removing these codes, enter 94EXV as necessary and continue with normal processing.

Exceptions & meaning →

Correction Procedures - EC 010¶

EC 010 generates when the spouse’s TIN is missing and position 2 of Field 01EXC is 1; and when dependent TINs are missing. EC 010 doesn’t generate for Form 1040(PR) and Form 1040-SS.

For Form 1040, follow the instructions in IRM 3.12.3, EC 010, to resolve errors.

If a Form 2555 for the spouse is present with a Form 1040 filed married filing jointly, and the secondary TIN is missing or invalid on the return, continue processing the Form 2555. The foreign earned income exclusion doesn’t require a valid TIN.

Exceptions & meaning →

Form 1040-NR - Correction Procedures Missing TIN for Spouse¶

Most nonresident alien taxpayers can claim only one exemption for "self" (the primary taxpayer). However, some nonresident alien taxpayers may claim additional exemptions and dependents based on their country of residence.

TY 2018 and later. A spouse is not eligible as a dependent for Credit for Other Dependents (ODC), and in TY 2018 exemptions aren’t allowed to be claimed on individual tax returns (the exemption amount is $0). For these reasons, the TIN and name of the spouse is no longer included on Form 1040-NR. Delete entries if present in Field 01SNC and Field 01SS. If filing status is "6" change it to "3" if "married nonresident alien" .

TY 2017 and prior. Exemptions are restricted by country of residence. Residents of certain countries may claim an exemption for their spouse. Determine the country of residence using taxpayer information on Form 1040-NR as described in IRM 3.22.3.11.3. Use the following table to determine appropriate actions:

And

Then

The taxpayer is a U.S. national or a resident of:

Canada

South Korea

Mexico

India

TIN is found on return or attachments,

Enter TIN in appropriate field.

The taxpayer is a U.S. national or a resident of:

Canada

South Korea

Mexico

India

Spouse’s TIN is missing or invalid,

Follow the instructions in IRM 3.12.3, EC 010.

If EC 256 generates after using Field 94EXV, assign TPNC 206.

All others, or if the country of residence can’t be determined,

Delete name and TIN information for spouse.

Allow only one exemption for self.

EC 256 generates, assign TPNC 401.

Exceptions & meaning →

Form 1040-NR - Correction Procedures Missing TIN for Dependent¶

Exceptions & meaning →

Note:¶

TY 2018 and later, the exemption amount that can be claimed is $0. Exemption coding (Field 01EXC and Field 94EXV) is retained for determining family size in certain calculations. An exemption that is allowed based on country of residence is also an allowable dependent.

Dependents and exemptions are restricted by country of residence on Form 1040-NR. Determine the country of residence using taxpayer information on Form 1040-NR as described in IRM 3.22.3.11.3. Use the following table to determine appropriate actions:

Exceptions & meaning →

Note:¶

TY 2018 and later, If a spouse is identified as listed in the dependent section, delete the TIN and name control from applicable fields if present.

And

Then

The taxpayer is a U.S. national or a resident of:

Canada

South Korea

Mexico

India

TIN is found on return or attachments,

Enter TIN in appropriate field.

Exceptions & meaning →

Note:¶

See exception for South Korea below

The taxpayer is a U.S. national or a resident of:

Canada

South Korea

Mexico

India

TIN is missing or invalid,

Follow the instructions in IRM 3.12.3, EC 010.

For TY17 and prior years, If EC 256 generates after using Field 94EXV, assign TPNC 206 or TPNC 605 as appropriate.

Exceptions & meaning →

Note:¶

See exception for South Korea below

The taxpayer is a resident of South Korea,

Claims a dependent other than child who lived in the United States,

Allow only dependent children who lived in the U.S.

Enter allowable dependents in Field 94EXV

For TY17 and prior years, if EC 256 generates, assign TPNC 402.

Exceptions & meaning →

Note:¶

Positions 6 and 7 of Field 94EXV should always be zero.

All others, or if the country of residence can’t be determined,

Delete name and TIN information for dependents

Allow only one exemption for self.

For TY17 and prior years, if EC 256 generates, assign TPNC 401.

Exceptions & meaning →

Error Code 011 - NAP Access Indicator¶

EC 011 generates when the NAP Access Indicator is NOT present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 011 for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 011¶

The following fields are displayed for EC 011.

1040-NR

1040-SS (sp)/1040-SS

Field Title

Clear Code

ERSRI>

ERS Response Indicator

DEPRI>

ERS Dependent Revalidation Indicator

AVSRI>

AVS Revalidation Indicator

EIFAI>

EIF Access Indicator

T-DAT>

Tentative Return Due Date Computer

PNEXT>

Primary NAP Extension Due Date

SNEXT>

Secondary NAP Extension Due Date

01NA1>

NAP Access Indicator

01NR1>

NAP EIF Response Indicator

01PYB>

Primary NAP Year of Birth

01NA2>

Secondary NAP Access Indicator

01NR2>

Secondary TIN NAP EIF Response Indicator

01SYB>

Secondary NAP Year of Birth

02NP1>

Dependent 1 NAP Access Indicator

02DR1>

Dependent 1 TIN NAP EIF Response Indicator

02YB1>

Dependent 1 NAP Year of Birth

02NP2>

Dependent 2 NAP Access Indicator

02DR2>

Dependent 2 TIN NAP EIF Response Indicator

02YB2>

Dependent 2 NAP Year of Birth

02NP3>

Dependent 3 NAP Access Indicator

02DR3>

Dependent 3 TIN NAP EIF Response Indicator

02YB3>

Dependent 3 NAP Year of Birth

02NP4>

Dependent 4 NAP Access Indicator

02DR4>

Dependent 4 TIN NAP EIF Response Indicator

02YB4>

Dependent 4 NAP Year of Birth

21NA1>

Dependent 1 Child Care NAP Access Indicator

21NR1>

Dependent 1 Child Care TIN NAP EIF Response Indicator

21NA2>

Dependent 2 Child Care NAP Access Indicator

21NR2>

Dependent 2 Child Care TIN NAP EIF Response Indicator

Exceptions & meaning →

Error Code 012 - Spouse/Dependent TIN Validation¶

EC 012 generates when the account for the spouse or a dependent is not present or there is a name control and TIN mismatch.

For Form 1040, follow the instructions in IRM 3.12.3, EC 012, to resolve errors.

Exceptions & meaning →

Fields Displayed - EC 012¶

The following fields are displayed for EC 012.

1040-NR

1040-SS (sp)/1040-SS

Field Title

Clear Field

01FSC

Filing Status

01TXP

Tax Period

01EXC

Exemption Code

94EXV

Exemption Code Verified

01RPC

Return Processing Code

01SPC

Special Processing Code

MEFII>

MeF Imperfect Return Indicator

01SNC

Secondary Name Control

Secondary NAP EIF Name Control

01SS

Secondary SSN

01NA2>

Secondary NAP Access Indicator

01NR2>

Secondary NAP EIF Response Indicator

02DS1

Dependent 1 SSN

02DN1

Dependent 1 Name Control

Dependent 1 NAP Name Control

02NP1>

Dependent 1 NAP Access Indicator

02DR1>

Dependent 1 TIN NAP EIF Response Indicator

02CT1

Dependent 1 Child Tax and Other Dependent Credit Indicator

02DS2

Dependent 2 SSN

02DN2

Dependent 2 Name Control

Dependent 2 NAP Name Control

02NP2>

Dependent 2 NAP Access Indicator

02DR2>

Dependent 2 TIN NAP EIF Response Indicator

02CT2

Dependent 2 Child Tax and Other Dependent Credit Indicator

02DS3

Dependent 3 SSN

02DN3

Dependent 3 Name Control

Dependent 3 NAP Name Control

02NP3>

Dependent 3 NAP Access Indicator

02DR3>

Dependent 3 TIN NAP EIF Response Indicator

02CT3

Dependent 3 Child Tax and Other Dependent Credit Indicator

02DS4

Dependent 4 SSN

02DN4

Dependent 4 Name Control

Dependent 4 NAP Name Control

02NP4>

Dependent 4 NAP Access Indicator

02DR4>

Dependent 4 TIN NAP EIF Response Indicator

02CT4

Dependent 4 Child Tax and Other Dependent Credit Indicator

02DTR

Dependent TIN Requirement

21CN1

Dependent 1 Child Care Name Control

Dependent 1 Child care NAP Name Control

21DS1

Dependent 1 Child Care SSN

21NA1>

Dependent 1 Child Care NAP Access Indicator

21NR1>

Dependent 1 Child Care TIN NAP EIF response Indicator

21CN2

Dependent 2 Child Care Name Control

Dependent 2 Child Care NAP Name Control

21DS2

Dependent 2 Child Care SSN

21NA2>

Dependent 2 Child Care NAP Access Indicator

21NR2>

Dependent 2 Child Care TIN NAP EIF Response Indicator

21CSR

Dependent Child Care SSN Requirement

Exceptions & meaning →

Returns Filed Using the Streamlined Filing Compliance Procedures (EC 012)¶

Remove any edits of SPC "P" , CCC "M" , CCC "R" , and CCC "P" . Enter CCC "N" if required, see IRM 3.22.3.13.

After removing these codes, enter 94EXV as necessary and continue with normal processing.

Exceptions & meaning →

Correction Procedures - EC 012¶

Go to the bottom of the screen and transmit.

Correct coding and transcription errors and misplaced entries on displayed fields.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 012 for correction procedures not listed below.

Exceptions & meaning →

Form 1040-NR - Correction Procedures Spouse TIN Validation¶

TY 2018 and later. A spouse is not eligible as a dependent for Credit for Other Dependents (ODC), and in TY 2018 and later exemptions aren’t allowed to be claimed on individual tax returns (the exemption amount is $0). For these reasons, the TIN and name of the spouse is no longer included on Form 1040-NR. Delete entries if present in Field 01SNC and Field 01SS. If filing status is "6" change it to "3" if "married nonresident alien" . If spouse is identified as listed in the dependent section, delete the TIN and name control from fields, if entered.

TY 2017 and prior. Exemptions are restricted by country of residence and in some cases a spouse may be claimed as an exemption. Determine the country of residence using taxpayer information on Form 1040-NR as described at IRM 3.22.3.11.3. Use the following table to determine appropriate actions:

And

Then

The taxpayer is a U.S. national or a resident of:

Canada

South Korea

Mexico

India

Spouse’s TIN is invalid,

Follow the instructions in IRM 3.12.3, EC 012.

If EC 256 generates after using Field 94EXV, assign TPNC 206.

All others, or if the country of residence can’t be determined,

Delete name and TIN information for spouse.

Allow only one exemption for self.

If EC 256 generates, assign TPNC 401.

Exceptions & meaning →

Form 1040-NR - Correction Procedures TIN Validation for Dependent¶

Most nonresident alien taxpayers can claim only one exemption for “self” (the primary taxpayer). However, some nonresident alien taxpayers may claim additional exemptions and dependents based on their country of residence.

Exceptions & meaning →

Note:¶

Dependents and exemptions are restricted by country of residence on Form 1040-NR. Determine the country of residence using taxpayer information on Form 1040-NR as described at IRM 3.22.3.11.3. Use the following table to determine appropriate actions:

Exceptions & meaning →

Note:¶

TY 2018 and later, If spouse is identified as listed in the dependent section, delete the TIN and name control from applicable fields if present.

And

Then

The taxpayer is a U.S. national or a resident of:

Canada

Mexico

India

Follow the instructions in IRM 3.12.3, EC 012.

The taxpayer is a resident of South Korea,

Claims a dependent other than self or child(ren) who lived in the United States,

Allow only dependent children who lived in the U.S.

Enter allowable dependents in Field 94EXV

For TY17 and prior years, if EC 256 generates, assign TPNC 402.

Exceptions & meaning →

Note:¶

Positions 6 and 7 of Field 94EXV should always be zero.

All others, or if the country of residence can’t be determined,

Delete name and TIN information for dependents.

Allow only one exemption for self.

EC 256 generates, assign TPNC 401.

Exceptions & meaning →

Form 1040-SS - Claiming Additional Child Tax Credit¶

To validate the Secondary TIN, follow the If and Then chart below:

Then

The Secondary TIN or Name Control (NC) was entered incorrectly,

Overlay Field 01SS and/or Field 01SNC with the correct information.

The Secondary TIN and Name Control was entered correctly,

Search the return or attachments for a different TIN and/or NC.

If a different TIN is found, overlay Field 01SS with the correct TIN.

If a different NC is found, enter "C" in the Clear field.

A different Secondary TIN and/or NC is not found on the return or attachments,

Research CC INOLE, using the primary TIN

If a different TIN is found, overlay Field 01SS with the correct TIN.

If a different NC is found, enter "C" in the Clear Field.

Research CC INOLE, NAMES or NAMEI for the secondary

If a different TIN is found, overlay Field 01SS with the correct TIN.

If a different NC is found, enter "C" in the Clear Field.

A different TIN is NOT found,

Enter "C" in the clear field.

EC 012 generates for one or more of the dependents. Check for coding and transcription errors.

And

Then

A Qualifying Child has a NAP Access Indicator of 2 or 9,

The name control underprints with the primary or secondary taxpayer's name control, or matches the primary or secondary taxpayer's name(s) on the return,

Change that child's name control to match the underprint.

One or more dependents are not valid,

Enter "C" in the clear field.

Exceptions & meaning →

Note:¶

Error Code 013 - Duplicate TINs¶

EC 013 generates when any TIN is listed for more than one person.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 013 for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 013¶

The following fields are displayed for EC 013.

1040-NR

1040-SS (sp)/1040-SS

Field Title

01PS

Primary SSN

01SS

Secondary SSN

01EXC

Exemption Code Field

94EXV

Exemption Code Verified Field

02DS1

Dependent 1 SSN

02DN1

Dependent 1 Name Control

02DS2

Dependent 2 SSN

02DN2

Dependent 2 Name Control

02DS3

Dependent 3 SSN

02DN3

Dependent 3 Name Control

02DS4

Dependent 4 SSN

02DN4

Dependent 4 Name Control

21CN1

Child Care Credit Dependent 1 Name Control

21DS1

Child Care Credit Dependent 1 SSN

21CN2

Child Care Credit Dependent 2 Name Control

21DS2

Child Care Credit Dependent 2 SSN

38TN1

Form 8839 Child 1 SSN

38NC1

Form 8839 Child 1 Name Control

38TN2

Form 8839 Child 2 SSN

38NC2

Form 8839 Child 2 Name Control

38TN3

Form 8839 Child 3 SSN

38NC3

Form 8839 Child 3 Name Control

Exceptions & meaning →

Error Code 014 - Entity Data¶

EC 014 generates when the Entity data is not consistent with the Master File Entity data.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 014 for invalid conditions and correction procedures.

Exceptions & meaning →

Field Displays - EC 014¶

The following fields are displayed for EC 014.

1040-NR

1040-SS (sp) /1040-SS

Field Title

01PNC

Name Control

Primary NAP EIF Name Control

01PS

Primary SSN

01SS

Secondary SSN

01NL1

First Name Line

01NL2

Second Name Line

01ADD

Street Address

01C/S

City/State

01ZIP

Zip Code

01TXP

Tax Period

01FSC

Filing Status Code

Exceptions & meaning →

Error Code 016 - FSC 2 No Ampersand¶

EC 016 generates when FSC 2 and the Name Line does not have an "&" .

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 016 for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 016¶

The following fields are displayed for EC 016.

1040-SS (sp)/1040-SS

Field Title

01NL1

Name Line 1

01FSC

Filing status Code

01EXC

Exemption Code

03TAX

Total Tax

Total Tax IMF Computer

Exceptions & meaning →

Error Code 017 - ITIN Expiration¶

EC 017 generates when the NAP ITIN Status Code is "I" for the Primary (Field 01PIC>), Secondary (Field 01SIC>), Dependent (Field 02DC1> through 02DC4>), or Child Care Dependent (Field 21CC1> or 21CC2>); when the Primary TIN begins with a "9" and CCC X is present; or when Filing Status is 2 and Secondary TIN begins with a "9" and RPC E is present. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 017, for invalid conditions. EC 017 is valid on Form 1040-NR, Form 1040(PR), Form 1040-SS.

Exceptions & meaning →

Fields Displayed - EC 017¶

The following fields are displayed for EC 017.

1040-NR

1040-SS (sp)/1040-SS

Field Title

Clear Code

01FSC

Filing Status Code

01TXP

Tax Period

01EXC

Exemption Code

94EXV

Exemption Verified

01RPC

Return Processing Code

01SPC

Special Processing Code

01PS

Primary SSN

01NA1>

Primary-NAP-Access-IND

01PIC>

Primary ITIN Status Code

01SS

Secondary SSN

01NA2>

Secondary NAP Access Indicator

01SIC>

Secondary ITIN Status Code

02MT4

More Than 4 Dependents

02DS1

Dependent 1 SSN

02NP1>

Dependent 1 NAP Access Indicator

02DC1>

Dependent 1 ITIN Status Code

02DS2

Dependent 2 SSN

02NP2>

Dependent 2 NAP Access Indicator

02DC2>

Dependent 2 ITIN Status Code

02DS3

Dependent 3 SSN

02NP3>

Dependent 3 NAP Access Indicator

02DC3>

Dependent 3 ITIN Status Code

02DS4

Dependent 4 SSN

02NP4>

Dependent 4 NAP Access Indicator

02DC4>

Dependent 4 ITIN Status Code

02DTR

Dependent TIN Requirement

21DS1

Dependent 1 Child Care SSN

21NA1>

Dependent 1 Child Care NAP Access Indicator

21CC1>

Child Care Dependent 1 ITIN Status Code

21DS2

Dependent 2 Child Care SSN

21NA2>

Dependent 2 Child Care NAP Access Indicator

21CC2>

Child Care Dependent 2 ITIN Status Code

03GE>

Gross Exemption Amount Computer

03INC

Taxable Income Amount

Taxable Income Computer

01TCE>

Child Tax Credit Total Eligible Computer Number

01TDE>

Other Dependent Credit Total Eligible Computer Number

03COD>

Gross Child and Other Dependent Credit Computer

03COD

Child and Other Dependent Credit Amount

Child and Other Dependent Credit Computer Amount

03ACT>

Gross Additional Child Credit Tax Computer Amount

03ACT

Additional Child Tax Credit Amount

Additional Child Tax Credit Computer Amount

21QI

Qualifying Individuals

21GC>

Gross Child Care Credit Computer

05302

Child Care Credit

Exceptions & meaning →

Correction Procedures - EC 017 Form 1040-SS¶

Go to the bottom of the screen and transmit to validate.

Fields present at EC 017 include ITIN Status Codes for the primary, secondary, and dependents. If ITIN Status Code "I" is present for any ITIN do not adjust Field 94EXV. Enter "C" in the Clear Code field and use the instructions and TPNCs found in EC 343 at IRM 3.22.3.253.2.

Exceptions & meaning →

Correction Procedures - EC 017 Form 1040-NR¶

Go to the bottom of the screen and transmit to validate.

Follow the instructions in IRM 3.12.3, Error Code 017. If EC 256, EC 279, EC 287, EC 290, or EC 343 generate after entering "C" in the Clear Field, assign TPNCs for Form 1040-NR according to these instructions:

EC 256 - IRM 3.22.3.190

EC 279 - IRM 3.22.3.213.3

EC 287 - IRM 3.22.3.216

EC 290 - IRM 3.22.3.226.2

EC 343 - IRM 3.22.3.253.6

Exceptions & meaning →

Error Code 018 - Date of Death Is Prior to Tax Period¶

EC 018 generates when the date of death is prior to the tax period.

Refer to both IRM 3.22.3 (if Form SSA/RRB 1042-S is attached) and IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 018 for invalid conditions and correction procedures.

Exceptions & meaning →

Correction Procedures - EC 018 for Form 1040¶

Form 1040 - If Form SSA/RRB 1042-S is attached READ ALL INSTRUCTIONS BELOW:

If both the copy of green card (for the taxpayer listed on the Form SSA/RRB 1042-S) and signed declaration or statement are attached, correspond for TIN verification selecting paragraph d on Form 13900 for EC 018.

If the copy of green card and/or statement is missing, correspond for copy of green card and/or declaration statement and TIN verification selecting paragraphs N and d on Form 13900.

Exceptions & meaning →

Correction Procedures - EC 018 for Form 1040-NR¶

If Form SSA/RRB 1042-S is attached, correspond for TIN verification selecting paragraph d on Form 13900 for EC 018.

Exceptions & meaning →

Error Code 019 - Date of Birth is Greater Than Tax Period¶

EC 019 is generated when any dependent date of birth is after the tax period of the return.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 019 for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 019¶

The following fields are displayed for EC 019.

1040-NR

1040-SS (sp)/1040-SS

Field Title

Clear Code

01FSC

Filing Status Code

01CCC

Computer Condition Code

01TXP

Tax Period

01EXC

Exemption Code

94EXV

Exemption Code Verified

01RPC

Returns Processing Code

01SPC

Special Processing Code

T-DAT>

Tentative Return Due Date Computer

01PS

Primary SSN

01NA1>

Primary NAP Access Indicator

01PAD>

Primary NAP TIN Assignment Date

01SS

Secondary SSN

01NA2>

Secondary NAP Access Indicator

01SAD>

Secondary NAP TIN Assignment Date

02MT4

More Than 4 Dependents

02DN1

Dependent 1 Name Control

02DS1

Dependent 1 SSN

02YB1>

Dependent 1 Year of Birth

02NP1>

Dependent 1 NAP Access Indicator

02AD1>

Dependent 1 TIN Assignment Date

02DN2

Dependent 2 Name Control

02DS2

Dependent 2 SSN

02YB2>

Dependent 2 Year of Birth

02NP2>

Dependent 2 NAP Access Indicator

02AD2>

Dependent 2 TIN Assignment Date

02DN3

Dependent 3 Name Control

02DS3

Dependent 3 SSN

02YB3>

Dependent 3 Year of Birth

02NP3>

Dependent 3 NAP Access Indicator

02AD3>

Dependent 3 TIN Assignment Date

02DN4

Dependent 4 Name Control

02DS4

Dependent 4 SSN

02YB4>

Dependent 4 Year of Birth

02NP4>

Dependent 4 NAP Access Indicator

02AD4>

Dependent 4 TIN Assignment Date

21DS1

Child Care Dependent 1 SSN

21YB1>

Child Care Dependent 1 NAP Date of Birth

21DS2

Child Care Dependent 2 SSN

21YB2>

Child Care Dependent 2 NAP Date of Birth

01TCE>

Child Tax Credit Total Eligibility Computer

94CEV

Child Tax Credit Total Eligibility Verified

01TDE>

Other Dependent Tax Credit Total Eligibility Computer

94DEV

Other Dependent Credit Total Eligibility Verified

03COD>

Gross Child and Other Dependent Credit Computer

03ACT>

Gross Additional Child Tax Credit Computer Amount

Exceptions & meaning →

Note:¶

Field T-DAT>, Tentative Return Date Computer, is computed based on the due date of the income tax return and approved extensions. See Exhibit 3.22.3-17 for due dates of Form 1040-NR

Exceptions & meaning →

Error Codes 020 - Major City Code¶

EC 020 generates when the major city code is invalid.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 020 for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 020¶

The following fields are displayed for EC 020.

1040-NR

1040-SS (sp)/1040-SS

Field Title

The following fields are displayed for EC 024.

1040

Field Title

Section 34 Present

Form 2555

DLSEC 34 or 35.

Delete the amount of exclusion claimed in Field 04OTI.

Make sure the income is reported in the appropriate income fields on Form 1040.

EC 218 generates, assign TPNC 309.

The tax home on Form 2555 is a U.S. territory,

DLSEC 34/35.

Delete the amount of exclusion claimed in Field 04OTI.

Make sure the income is reported in the appropriate income fields on Form 1040.

EC 218 generates, assign TPNC 310.

Exceptions & meaning →

Note:¶

Form 2555 is not valid if the taxpayer is claiming the Foreign-Earned Income Exclusion for income that is earned in a U.S. territory (i.e., American Samoa).

Exceptions & meaning →

Error Code 025 - Post of Duty Code¶

EC 025 generates when Post of Duty Code is invalid or incorrect Document Code.

Exceptions & meaning →

Fields Displayed - EC 025¶

The following fields are displayed for EC 025.

1040

Field Title

S34NP

Section 34 Not Present

34POD

Post of Duty Code 34

S35NP

Section 35 Not Present

35POD

Post of Duty Code 35

Exceptions & meaning →

Invalid Conditions - EC 025¶

FLC is 20, the Document Code is 05, 06, 11, 12, 21 or 22 and the Post of Duty Code is invalid.

Exceptions & meaning →

Correction Procedures - EC 025¶

Correct coding and transcription errors and misplaced entries on displayed fields.

Determine the country where the Form 2555 income was earned. Use the following priority order when determining the POD:

Address line 1, Form 2555;

Address line 9, Form 2555;

Principal country, line 17, Form 2555

Foreign address on Form 1040

Employer's foreign address, line 4b, Form 2555;

Address from an income statement

If line 1 Form 2555 is an address of a U.S. territory and therefore not allowed for claiming a Foreign Earned Income Exclusion, delete the amount of the exclusion claimed on Line 8d, Schedule 1, of Form 1040 and DLSEC 34 or 35. When EC 218 generates, assign TPNC 310 and continue processing as an international return. Don’t suspend for renumbering.

Find the POD Code for the country using Exhibit 3.22.3-4, Country and Post of Duty (POD) Codes, and enter in Field 34POD/35POD. If the country is not found in this exhibit or cannot be determined, enter POD "XX" .

Exceptions & meaning →

Error Code 026 - Computer Condition Code "L" or "W" is Present¶

EC 026 generates when CCC "L" or "W" is present and Field 01NL2 is not present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 026 for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 026¶

The following fields are displayed for EC 026.

1040-NR

1040-SS (sp)/1040-SS

Field Title

Clear Code

01NL1

Name line 1

01NL2

Name line 2

01CCC

Computer Condition Code

02NC>

Non-Compute Code

03BDR>

Balance/Due Overpayment Taxpayer Computer

Balance/Due Overpayment Computer

Exceptions & meaning →

Error Code 028 - Decedent Return Check¶

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 028, for invalid conditions and correction procedures. If corresponding for missing or incomplete information follow these instructions when using these forms:

Form 13900 for Letter 4087C - select paragraph f.

(Form 1040-SS)Form 13975 for Letter 2894C - select paragraph Y of Letter 2894C.

Exceptions & meaning →

Fields Displayed - EC 028¶

The following fields are displayed for EC 028.

1040-NR

1040-SS

Field Title

Clear Code

01FSC

Filing Status Code

01TXP

Tax Period

01PS

Primary SSN

01PNC

Primary Name Control

Primary NAP EIF Name Control

01PDD>

Primary NAP Date of Death

01SS

Secondary SSN

01SNC

Secondary Name Control

Secondary NAP EIF Name Control

01SDD>

Secondary NAP Date of Death

01NL1

Name Line 1

01NL2

Name Line 2

01CCC

Computer Condition Code

01FPC

Form Processing Code

01RPC

Return Processing Code

01SPC

Special Processing Code

03WH

Withholding-Form(s) W-2 or 1099

0325E

Withholding-Form(s) 8805

0325F

Withholding-Form(s) 8288-A

0325G

Withholding-Form(s) 1042-S

03ESP

Estimated Tax Payments

PETP>

Primary NAP Estimated Tax/Credit Election Payment Code

SETP>

Secondary NAP Estimated Tax/Credit Election Payment Code

03ACT

Additional Child Tax Credit

03CEL

Estimated Tax Credit Elect

03BDR

Balance Due/Overpayment

Balance Due/Overpayment Computer

03BDR>

Balance Due/Refund Taxpayer Computer

Exceptions & meaning →

Error Code 029 - Unclaimed Credits¶

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 029, for correction procedures and invalid conditions. If corresponding follow these instructions when using these forms:

Form 13900 for Letter 4087C - select paragraph letter g.

(Form 1040-SS) - select paragraph Z on Form 13975 for Letter 2894C.

(Form 1040-SS (sp)) - select paragraph Z on Form 13975 for Letter 2894C

Exceptions & meaning →

Fields Displayed - EC 029¶

The following fields are displayed for EC 029.

1040-NR

1040-SS (sp)/1040-SS

Field Title

Clear Code Field

01FSC

Filing Status Code

01TXP

Tax Period

01PS

Primary TIN

01PNC

Primary Name Control

Primary NAP-EIF-Name-Ctrl-Underprint

01SS

Secondary TIN

01SNC

Secondary NAP Name Control

Secondary NAP Name Control Underprint

01CCC

Computer Condition Code

01FPC

Form Processing Code

01RPC

Return Processing Code

01SPC

Special Processing Code

03WH

Withholding-Form(s) W-2 or 1099

0325E

Withholding-Form(s) 8805

0325F

Withholding-Form(s) 8288-A

0325G

Withholding-Form(s) 1042-S

03ESP

Estimated Tax Payments

PETP>

Primary NAP Estimated Tax/Credit Election Payment Code

SETP>

Estimated Tax/Credit Election Payment Code Secondary Taxpayer

05EXT

Form 4868 Payment

03BDR

Balance Due/Overpayment

Balance Due/Overpayment Computer

03BDR>

Balance Due/Refund Taxpayer Computer

03CEL

Estimated Tax Credit Elect

Exceptions & meaning →

Error Code 030 - ITIN Filers with Form W-2¶

EC 030 generates when a paper-filed return has wages and the primary or secondary (if FS 2) has a TIN that begins with "9" .

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 030, for invalid conditions and correction procedures. EC 030 won’t generate for Form 1040-SS (sp) or Form 1040-SS.

Exceptions & meaning →

EC 030 - Fields Displayed¶

The following fields are displayed at EC 030.

1040-NR

Field Title

Clear Code

01FSC

Filing Status Code

01NL1

Name Line 1

01PS

Primary Taxpayer TIN

01SS

Secondary Taxpayer TIN

03WG

W-2 Wages

04SFG

Scholarship or Fellowship Grants

88W2A

ITIN Return First W-2 SSN (ERS Only)

88W2B

ITIN Return Second W-2 SSN (ERS Only)

Exceptions & meaning →

Error Code 032 - FSC 2/6 Exemptions¶

EC 032 generates when the FSC is 2/6 and an exemption is not present in the second position for Field 01EXC and CCC "G" is not present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 032 for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 032¶

The following fields are displayed for EC 032.

1040-SS (sp)/1040-SS

Field Title

01NL1

Name Line 1

01FSC

Filing Status Code

01CCC

Computer Condition Code

01EXC

Exemption Code

Exceptions & meaning →

Error Code 034 - FSC 4 or 5 - Exemptions¶

EC 034 generates when Field 01FSC is 4 or 5, exemptions are zero, and CCC "G" is not present.

Exceptions & meaning →

Fields Displayed - EC 034¶

The following fields are displayed for EC 034.

1040-NR

Field Title

01FSC

Filing Status

01CCC

Computer Condition Code

01EXC

Exemption Code Field

94EXV

Exemption Code verified

02DN1

Dependent 1 Name Control

02DS1

Dependent 1 SSN

02CT1

Dependent 1 Child Tax and Other Dependent Credit Indicator

02DN2

Dependent 2 Name Control

02DS2

Dependent 2 SSN

02CT2

Dependent 2 Child Tax and Other Dependent Credit Indicator

02DN3

Dependent 3 Name Control

02DS3

Dependent 3 SSN

02CT3

Dependent 3 Child Tax and Other Dependent Credit Indicator

02DN4

Dependent 4 Name Control

02DS4

Dependent 4 SSN

02CT4

Dependent 4 Child Tax and Other Dependent Credit Indicator

21CN1

Child Care Credit Dependent 1 Name Control

Child Care Credit Dependent 1 NAP Name Control

21DS1

Child Care Credit Dependent 1 Social Security Number

21CN2

Child Care Credit Dependent 2 Name Control

Child Care Credit Dependent 1 NAP Name Control

21DS2

Child Care Credit Dependent 2 Social Security Number

S21NP

Section 21 Not Present

40CN1

Form 8814 Section 40 Name Control

40CT1

Form 8814 Section 40 Social Security Number

S40NP

Section 40 Not Present

41CN2

Form 8814 Section 41 Name Control

41CT2

Form 8814 Section 41 Social Security Number

S41NP

Section 41 Not Present

42CN3

Form 8814 Section 42 Name Control

42CT3

Form 8814 Section 42 Social Security Number

S42NP

Section 42 Not Present

Exceptions & meaning →

Error Code 038 - ScanPaper Literal¶

EC 038 generates when a zero (0) is present in field 01FPC.

EC 038 is valid on Form 1040-NR and Form 1040-SS.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 038 for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 038¶

The following fields are displayed for EC 038.

1040-NR

1040-SS

Field Title

01FSC

Filing Status Code

01RCD

Received Date

01TXP

Tax Period

01FPC

Form Processing Code

Exceptions & meaning →

Error Code 038 ScanPaper Literal Correction Procedures¶

Correct coding and transcription errors and misplaced entries in displayed fields.

When a zero is present in Field 01FPC and a Gen Dep statement in EUP indicates the return is ScanPaper, find the vendor literal within the attached Gen Dep statement and refer to the Literal Definition in the table below. Also refer to IRM 3.12.3 EC 038 for vendor literals and literal definitions not covered in IRM 3.22.3. Follow the IRM instructions for the issue found in the Literal Definition which includes correcting transcription/scanning errors.

Exceptions & meaning →

Note:¶

If the return is not ScanPaper, delete 0 (zero) from Field 01FPC.

Vendor Literal

Literal Definition

Form 8962 verify start and end months line 30/35/36

GTSEC 74 and verify transcription. Refer to IRM 3.12.2.58

Multiple Form 4835 attached possible combining.

If multiple forms are attached, combine all transcribed money amounts and enter into appropriate fields.

Multiple Form 461 attached

If multiple forms are attached, combine all transcribed money amounts and enter into appropriate fields.

Multiple Form 8941 attached

If there is more than one form per TIN, combine all transcribed money amounts and enter into appropriate fields.

Multiple Form 9465 attached

Follow paragraph 3 below for instructions.

Multiple Form 8938 attached

Ensure "G" is entered in to field 01FPC

If the PDF attachment needs to be routed and the attachment guide in IRM 3.21.3-1 or IRM 3.11.3-1 says to detach:

Print the PDF of the attachment(s) specified by the routing guide from EUP.

Add a note to your routing slip that says “Document scanned by IRS via SPR and viewable in EUP”.

Follow local procedures for routing attachments.

If the PDF attachment needs to be routed and the attachment guide in IRM 3.21.3-1 or IRM 3.11.3-1 says do not detach:

Print the PDF return (including all PDF forms, schedules and attachments) from EUP.

Add a note to your routing slip that says “Document scanned by IRS via SPR and viewable in EUP. Process printout as signed original.”

SSPND 640 to Rejects. On Form 4227 notate that return needs to routed and the area it needs to be routed to.

If there is a General Dependency Small literal not listed in the table above or in IRM 3.12.3 EC 038, SSPND 471 and send DLN to P&A to elevate to HQ.

After reviewing the Vendor Literal and taking all necessary actions, enter C in the Clear Field.

Exceptions & meaning →

Error Code 042 - Received Date¶

EC 042 generates when the received date is earlier than the ending month and year of the tax period.

Refer to IRM 3.22.3.15.14 for determining received dates on returns that were "Sent Back for Signature" .

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 042 for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 042¶

The following fields are displayed for EC 042.

1040-NR

1040-SS (sp)/1040-SS

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01CCC

Computer Condition Code

01RCD

Received Date

Exceptions & meaning →

Error Code 046 - Fiscal Year Tax Period¶

EC 046 generates when CCC "A" , "E" , "F" or "Y" are not present, the ending month in the tax period is other than 12 and the Doc. Code is not 26, 27, 72 or 73.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 046 for screen display, invalid conditions and correction procedures.

Exceptions & meaning →

Error Code 048 - Amended Return¶

EC 048 generates when CCC "G" is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 048, for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 048¶

The following fields are displayed for EC 048.

1040-NR

1040-SS (sp)/1040-SS

Field Title

Clear Code

01CCC

Computer Condition Code

Exceptions & meaning →

Error Code 050 - Preparer's Code¶

EC 050 generates when both the preparer's EIN and code are present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns for screen displays, invalid conditions and correction procedures.

Exceptions & meaning →

Error Code 051 - CCC "L" or "W" - FLC 20 (International Only)¶

EC 051 generates when the FLC is 20 and CCC "L" or "W" is present.

Exceptions & meaning →

Fields Displayed - EC 051¶

The following fields are displayed for EC 051.

1040-NR

1040

Field Title

Clear Field

01NL1

Name Line 1

01NL2

Name Line 2

01ADD

Address

01C/S

City/State

01ZIP

ZIP Code

01COU

Country Code

01CCC

Computer Condition Code

Exceptions & meaning →

Invalid Conditions - EC 051¶

Generates when the FLC is 20 and CCC "L" or "W" is present.

Exceptions & meaning →

Correction Procedures - EC 051¶

Verify address in the entity caption.

Then

The return has a domestic address and no other International criteria are present.

SSPND 610 for renumbering to domestic.

Foreign address or other International criteria are present,

Determine if the CCC "L" or "W" is appropriate. CAUTION: CCC "L" or "W" is only necessary on refund or non-compute returns. Refer to Error Code 026, in IRM 3.12.3, Individual Master File Error Resolution General Instructions for further information on CCC "L" or "W" .

There are other International criteria, the address is domestic, and it is determined that CCC "L" or "W" is appropriate and it is a refund return

Enter a "C" in the Clear Code field.

There is a foreign address or other International criteria and it is determined that CCC "L" or "W" is appropriate, and it is a refund return,

Issue a manual refund as follows:

Delete Field 03BDR

Delete CCC "Y" , "L" and/or "W" from ERS screen and circle CCC "Y" , "L" and/or "W" on document

Refer to Error Code 260, Manual Refunds IRM 3.22.3.193.6 for further instructions.

Exceptions & meaning →

Caution:¶

Do not issue a manual refund if any of the conditions listed in EC 260, Manual Refunds are present. Delete CCC "Y" and enter a "C" in the Clear Code field and continue processing.

EC 370 generates,

Prepare Form 4227 notating "Manual Refund" and SSPND 341 and Delete CCC "L" or "W" (for suspense tax examiners only).

It is determined that the record does not require the "L" or the "W" ,

Delete the code(s) from Field 01CCC.

Exceptions & meaning →

Error Code 052 - CCC "F" or "9" - FSC 2¶

EC 052 generates when FSC is 2 and the condition for CCC "F" or "9" are inconsistent with NAP data.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 052 for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 052¶

The following fields are displayed for EC 052.

1040-SS (sp)/1040-SS

Field Title

01NL1

Name Line 1

01NL2

Name Line 2

01FSC

Filing Status Code

01CCC

Computer Condition Code

01PDD>

Primary NAP Date of Death

01SDD>

Secondary NAP Date of Death

02NC>

Non-Compute Code

03BDR>

Balance/Due Overpayment Taxpayer Computer

Balance Due/Refund Computer

Exceptions & meaning →

Error Code 053 - FSC 2/ DECD¶

03TWG

Total Wages Amount

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

Exceptions & meaning →

Error Code 067 - Reconcile ACA Data¶

EC 067 generates when data received from the ACA Verification Service (AVS) are invalid characters.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 067, for screen display, invalid conditions and correction procedures.

Exceptions & meaning →

Error Code 070 - At-Risk Code-Schedule C¶

EC 070 generates when the At-Risk Code is inconsistent with Schedule C data.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 070, for screen display, invalid conditions and correction procedures.

Exceptions & meaning →

Note:¶

Form 6198 is a valid form with Form 1040-NR, and starting in PY21, it will be transcribed by ISRP and MEF. If Form 6198 is not transcribed, search Form 1040-NR for an attached Form 6198 and if found GTSEC 31 to enter amounts in the available fields.

Exceptions & meaning →

Error Code 072 - At-Risk Code-Schedule F¶

EC 072 generates when the At-Risk Code is inconsistent with Schedule F.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 072, for screen display, invalid conditions and correction procedures.

Field Title

0403

Combined Schedule C Profit or Loss

Combined Schedule C Profit or Loss Computer

0406

Combined Schedule F Profit or Loss

Combined Schedule F Profit or Loss Computer

S09NP

Section 09 Not Present

0901

Gross Receipts

0902

Returns and Allowances

0904

Cost of Goods Sold IMF

0906

Schedule C Other Income

09EXP

Total Deductions

0930

Business At Home Expenses Section 09 Amount

09AR

At-Risk Code IMF

09NET>

Schedule C Profit or Loss Computer Section 09

09PAL

Passive Activity Loss Section 09 Indicator

S10NP

Section 10 Not Present

1001

Gross Receipts

1002

Returns and Allowances

1004

Cost of Goods Sold IMF

1006

Schedule C Other Income

10EXP

Total Deductions

1030

Business At Home Expenses Section 10 Amount

10AR

At-Risk Code IMF

10NET>

Schedule C Profit or Loss Computer Section 10

10PAL

Passive Activity Loss Section 10 Indicator

S11NP

Section 11 Not Present

1101

Gross Receipts

1102

Returns and Allowances

1104

Schedule C Other Income

1106

Total Deductions

11EXP

Business At Home Expenses Section 11 Amount

1130

At-Risk Code IMF

11AR

Schedule C Profit or Loss Computer Section 11

11NET>

Schedule C Profit or Loss Computer Section 11

11PAL

Passive Activity Loss Section 11 Indicator

S14NP

Section 14 Not Present

1409

Gross Profits Cash

1433

Total Farm Expenses

1434>

Schedule F Profit or Loss Computer Section 14

14PAL

Passive Activity Loss Section 14 Indicator

14AR

At-Risk Code IMF

1450

Gross Profit Accruals

S15NP

Section 15 Not Present

1509

Gross Profits Cash

1533

Total Farm Expenses

1534>

Schedule F Profit or Loss Computer Section 15

15PAL

Passive Activity Loss Section 15 Indicator

15AR

At-Risk Code IMF

1550

Gross Profit Accruals

S31NP

Section 31 Not Present

3105

Overall Profit or Loss

3120

At-Risk Amount

3121

Deductible Loss

Exceptions & meaning →

Error Code 074 - Cash and Accrual¶

EC 074 generates when both the Cash and Accrual Method is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 074 for screen display, invalid conditions and correction procedures.

Exceptions & meaning →

Error Code 075 to 084¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns for screen displays, invalid conditions and correction procedures.

Exceptions & meaning →

Error Code 085 - Foreign Tax Credit Form 1116¶

EC 085 generates when:

Foreign Tax Credit is present and Section 19 is not present; and either

Filing Status is 2 and Foreign Tax Credit is greater than $600.00; or

Filing Status is other than 2 and Foreign Tax Credit is greater than $300.00.

Exceptions & meaning →

Fields Displayed - EC 085¶

The following fields are displayed for EC 085

1040-NR

Field Title

Clear Code

01ACD

Audit Code

0521A

Excess APTC Repayment Amount

05301

Foreign Tax Credit

05302

Child Care Credit

S19NP

Section 19 Not Present

Exceptions & meaning →

Error Code 085 - Foreign Tax Credit Form 1116¶

Correct coding and transcription errors and misplaced entries.

Belgium

Brazil

Canada

Chile

Czech Republic

Denmark

Finland

France

Germany

Greece

Hungary

Iceland

Ireland

Italy

Japan

Luxembourg

Netherlands

Norway

Poland

Portugal

Slovak Republic

Slovenia

South Korea

Spain

Sweden

Switzerland

United Kingdom (England, Northern Ireland, Scotland and Wales)

Uruguay

A foreign agricultural worker temporarily admitted into the United States on a H-2A visa is exempt from Self-Employment tax, whether a resident alien filing a Form 1040 or a nonresident alien. Though these wages are typically reported by the employer on a Form W-2, the wages may be reported on a Form 1099-MISC. If EC 088 generates for income earned for agricultural work by a H-2A visa holder then enter a "S" in Field 01RPC.

Enter RPC "S" in Field 01RPC when the taxpayer indicates that they are not liable for Self-Employment tax or if the taxpayer indicates that Form 4361 or Form 4029 was filed.

A notation of "QJV" is an indication that there is no Self-Employment liability. Enter RPC "S" in Field 01RPC when present.

SSPND 215 selecting paragraph 6 on Form 13900 if the taxpayer does not meet the criteria in (2), (3) or (4) above on Form 1040.

Exceptions & meaning →

Error Code 089 - SE Method¶

EC 089 generates when the SE Schedule data is inconsistent with SE Method Code.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 089, for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 089¶

The following fields are displayed for EC 089.

1040-NR

Field Title

Clear Code

0403

Combined Schedule C Profit/Loss

Combined Schedule C Profit/Loss Computer

S09NP

Section 09 Not Present

09NET>

Schedule C Profit/Loss Computer Section 09

S10NP

Section 10 Not Present

10NET>

Schedule C Profit/Loss Computer Section 10

S11NP

Section 11 Not Present

11NET>

Schedule C Profit/Loss Computer Section 11

S17NP

Section 17 Not Present

1702

Net Non-Farm Profit/Loss

17TE

Tentative Earnings

17MCD

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns for screen displays, invalid conditions and correction procedures.

Exceptions & meaning →

Error Code 116 - Withholding Equals Regulated Investment Company Credit or Total Tax¶

EC 116 generates when withholding is the same as either the Regulated Investment Company Credit or Total Tax IMF.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 116, for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 116¶

The following fields are displayed for EC 116.

1040-NR

Field Title

Clear Code

03TAX

Total Tax IMF

03WH

Withholding from Form(s) W-2 and 1099

0325E

Withholding from Form(s) 8805

0325F

Withholding from Form(s) 8288-A

0325G

Withholding from Form(s) 1042-S

05RIC

Form 2439 Regulated Investment Company Credit

Exceptions & meaning →

Error Code 118 - Withholding and Income Comparison¶

EC 118 generates when the withholding amount is inconsistent with other data on the return.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 118 and IRM 3.22.3 for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 118¶

The following fields are displayed for EC 118.

1040-NR

Field Title

01FSC

Filing Status Code

01CCC

Computer Condition Code

01SPC

Special Processing Code

01RPC

Return Processing Code

02NC>

Non-Compute Code

03TWG

Total Wages Amount

03INT

Taxable Interest

03DIV

Ordinary Dividend

03QD

Qualified Dividends

04SFG

Scholarship or Fellowship Grant

03TIR

Taxable IRA Distribution

03TPA

Taxable Pensions and Annuities

0407

Taxable Unemployment Compensation

03AGI

Adjusted Gross Income (AGI)

AGI Computer Amount

03WH

Withholding from Form(s) W-2 and 1099

0325E

Withholding from Form(s) 8805

0325F

Withholding from Form(s) 8288-A

0325G

Withholding from Form(s) 1042-S

03ESP

Estimated Tax Payments

0329

Form 1040C Credit

03BDR

Balance Due/Overpayment Taxpayer

Balance Due/Overpayment Computer

03BDR>

Balance Due/Overpayment Taxpayer Computer

03CEL

Estimated Tax Credit Elect

04OTI

Other Income Amount

09NET>

Schedule C Profit/Loss Computer-Section 09

10NET>

Schedule C Profit/Loss Computer-Section 10

11NET>

Schedule C Profit/Loss Computer-Section 11

1332>

Partnership S Corporation Income Loss Computer

1434>

Schedule F Profit/Loss Computer-Section 14

1534>

Schedule F Profit/Loss Computer-Section 15

S46NP

Section XX Not Present

Exceptions & meaning →

Invalid Condition - EC 118¶

EC 118 generates when the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, withholding is significant and RPC "G" is not present, and either:

RPC "C" is not present or FSC is 2, 5, or 6 with withholding ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡1/1≡ ≡ ≡ ≡ ≡ of the sum of Wages, Taxable Interest, Taxable Dividends, Taxable IRA Distributions, Taxable Pension/Annuity and Taxable Social Security.

RPC "C" is present and FSC is 1, 3, 4, or 7 with withholding ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡1/1≡ ≡ ≡ ≡ ≡ ≡ of the AGI computer.

Exceptions & meaning →

Note:¶

Only the withholding reported in Field 03WH is used in the EC 118 calculation for Form 1040-NR.

Exceptions & meaning →

Correction Procedures - EC 118¶

Correct coding and transcription errors and misplaced entries on displayed fields.

For Form 1040-NR tax withheld is reported on designated lines depending on the type of form: Form W-2, Form 1099, and Other forms, TY20, line 25d (TY19, line 62a), Form 8805, TY20, line 25e (TY19, line 62b), Form 8288-A, TY20, line 25f (TY19, line 62c), and Form 1042-S, TY20, line 25g (TY19, line 62d) on Form 1040-NR. Each line has its own ERS field. If the tax withheld is reported on the wrong line on the tax form, or transcribed in the wrong field, then it must be moved to the correct field depending on the type of withholding form. (For instance, if tax withheld on Form 8288-A is reported on line 25g then it must be deleted from Field 0325G in ERS and entered in Field 0325F after verification.)

On Form 1040-NR each type of withholding has specific requirements for documentation and validation. If withholding entered in Field 03WH (Form 1040-NR ) is from a form other than Form W-2 or Form 1099 then use the instructions at IRM 3.22.3.264.4, EC 366 to validate the claims. Correct misplaced entries.

If the amount on Form 1040 line 25d, is identified as tax withheld from Form 1042-S, Form 8805, or Form 8288-A, then follow the instructions in IRM 3.22.3.264.3, Error Code 366 for the applicable withholding form.

If the withholding reported is from a U.S. territory, follow the instructions at IRM 3.22.3.264.3.2, Form 1040 Federal Withholding.

If the withholding reported is foreign and not U.S. federal withholding, disallow the foreign withholding claimed and assign TPNC 438.

If the taxpayer exempted all or part of the income reported on Form W-2 or Form 1099 with a valid tax treaty enter RPC G.

If the nonresident alien taxpayer on Form 1040-NR indicates that the income from Form W-2 is payment for services performed partly inside and partly outside of the United States then enter RPC G.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 118, for additional procedures.

Exceptions & meaning →

Error Code 122 - CCC "G" , "B" or RPC "L" Not Present/Zero Return¶

EC 122 generates when there is inconsistent data on the return.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 122 for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 122¶

The following fields are displayed for EC 122.

1040-NR

Field Title

01CCC

Computer Condition Code

01RPC

Return Processing Code

02NC>

Non-Compute Code

03WG

W-2 Wages

03TWG

Total Wages

03AGI

Adjusted Gross income

Adjusted Gross Income Computer

03TTX

Tentative Tax

Tentative Tax Computer

03TAX

Total Tax

03WH

Withholding from Form(s) W-2 or 1099

Withholding from Form(s) 1042-S

03BDR>

Balance Due/Overpayment Taxpayer Computer

Balance Due/Overpayment Computer

Exceptions & meaning →

Error Code 123 - Non-Compute Code 2 and Preparer's Data Present¶

EC 123 generates when the return is identified as a non-compute and data is present for a preparer.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 123 for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 123¶

The following fields are displayed for EC 123.

1040-NR

Field Title

Clear Code

01CCC

Computer Condition Code

03PT

Preparer's TIN

03PE

Preparer's EIN

02NC>

Non-Compute Code

03WH

Withholding from Form(s) W-2 or 1099

Withholding from Form(s) 1042-S

03BDR

Balance Due/Refund

03CEL

Estimated Tax Credit Elect

03PC

Preparer's Code

Exceptions & meaning →

Error Code 124 CCC "A" , "F" or "9"¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 124 for screen displays, invalid conditions and correction procedures.

Exceptions & meaning →

Error Codes 130 - 146¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns for screen displays, invalid conditions and correction procedures.

Exceptions & meaning →

Error Code 148 - Form 2555 Incompatible Residency Dates¶

EC 148 generates when beginning and ending dates are inconsistent.

Exceptions & meaning →

Fields Displayed - EC 148¶

Error Codes 148, 150 and 152 all relate to date information in reference to Sections 34 and 35. Special care must be taken when resolving these error codes. ERS tax examiners must be certain to use date information present at the specific lines referenced in these error codes. There should never be any deviations from the specific instructions outlined in these 3 error codes.

The following fields are displayed for EC 148.

Form 2555

Field Title

34BD1

Beginning Date 1 Section 34

34ED1

Ending Date 1 Section 34

34BD2

Beginning Date 2 Section 34

34ED2

Ending Date 2 Section 34

35BD1

Beginning Date 1 Section 35

35ED1

Ending Date 1 Section 35

35BD2

Beginning Date 2 Section 35

35ED2

Ending Date 2 Section 35

Exceptions & meaning →

Invalid Conditions - EC 148¶

EC 148 generates when Section 34/35 is present, Field 34BD1 or Field 35BD1 is significant, and any of the following conditions exist:

Field 34/35ED1 is significant, and Field 34/35ED1 is less than Field 34/35BD1, or

Field 34/35ED1 is not significant, or

Field 34/35BD2 is significant, or

Field 34/35ED2 is significant.

EC 148 also generates when Section 34/35 is present, Field 34BD1 or Field 35BD1 is not significant, and any of the following conditions exist:

Field 34/35ED1 is significant, or

Field 34/35ED1 is not significant, and Field 34/35BD2 is significant, and Field 34/35ED2 is significant, and Field 34/35ED2 is less than Field 34/35BD2, or

Field 34/35ED1 is not significant, and Field 34/35BD2 is significant, and Field 34/35ED2 is not significant, or

Field 34/35ED1 is not significant, and Field 34/35BD2 is not significant, and Field 34/35ED2 is significant.

Exceptions & meaning →

Correction Procedures - EC 148¶

Correct coding and transcription errors and misplaced entries on displayed fields.

See "General Requirements for Form 2555" at IRM 3.22.3.42.1 for the bona fide residence test and physical presence test qualifications. To qualify for bona fide residence the taxpayer must reside in a foreign country or countries for an uninterrupted period that includes an entire tax year (January 1 through December 31 for taxpayers who file on a calendar year basis) and at least part of the tax year of the return. To qualify based on physical presence the taxpayer must reside in a foreign country or countries for at least 330 full days during any 12-month period and at least part of the tax year of the return. In some cases, if a prior year exclusion is notated on line 45 of Form 2555 the residency period might not include a part of the tax year of the return.

If valid bona fide residence test dates (line 10 Form 2555) are available, enter in Fields 34BD1 and 34ED1 or Fields 35BD1 and 35ED1 in YYYYMM format.

If valid physical presence dates (line 16, Form 2555) are available, enter in Fields 34BD2 and 34ED2 or Fields 35BD2 and 35ED2 in YYYYMM format.

If no beginning dates or ending dates are present see the instructions in EC 150 and EC 152.

If valid bona fide residence and physical presence test dates are both available use the dates that reflect the longest period. If the same dates are used, delete the physical presence test dates (Fields 34BD2 and 34ED2 or Fields 35BD2 and 35ED2).

If a bona fide residence or physical presence test beginning date is present, but the ending date is not present, use the received date stamped on the return as the ending date if the taxpayer indicates continuing presence, such as: "still here" , "continues" , "N/A" . If no received date is present use the current date as the ending date. If the period meets the requirements of the bona fide residency or physical presence test then enter the ending date in Field 34/35ED1 or 34/35ED2.

If both beginning and ending dates are present for the bona fide residence test but the dates don’t qualify the taxpayer for bona fide residence, determine the number of days during the period that are within the tax year of the return. If between 330 to 364 days, then enter the dates as valid physical presence test dates.

If the bona fide residence test ending date is earlier than the beginning date then delete the dates in Fields 34BD1 and 34ED1 or Fields 35BD1 and 35ED1 and determine the dates using the correction procedures below:

Then

Valid physical presence test dates are present,

Enter physical presence test dates in Fields 34BD2 and 34ED2 or Fields 35BD2 and 35ED2.

Line 31 or 38 of Form 2555 is between 330 and 364 days,

Enter physical presence test dates in Fields 34BD2 and 34ED2 or Fields 35BD2 and 35ED2

Line 31 or 38 of Form 2555 is 365 days,

Enter bona fide residence test dates for January through December in Fields 34BD1 and 34ED1 or Fields 35BD1 or 35ED1.

Line 31 or 38 of Form 2555 is 329 days or less, or blank,

TY19 and later, check if any one of the following notations is present:

Rev. Proc. 2020-27

adverse conditions

could not meet 330 days test due to emergency (for example: Medical condition or Travel restrictions)

If any one of the notation from the above is present, allow the foreign earned income exclusion and enter the physical presence test dates in YYYYMM format in fields 34BD2 and 34ED2

If there are no notations on TY19 and later returns or if the return is for TY18 and prior, GTSEC 04 and adjust Field 04OTI (delete Foreign Earned Income Exclusion amount), adjust Field 04ADJ (delete Housing Deduction amount), make sure the foreign earned income is reported in Section 04 and DLSEC 34/35.

Exceptions & meaning →

Note:¶

If the deleted Form 2555 was the only foreign aspect of the return, SSPND 610 to renumber as a domestic return.

If the physical presence test ending date is earlier than the beginning date, then delete the dates in Fields 34BD2 and 34ED2 or Fields 35BD2 and 35ED2 and determine the dates using the correction procedures below:

Then

Valid bona fide residence test dates are present,

Enter bona fide residence test dates in Fields 34BD1 and 34ED1 or Fields 35BD1 and 35ED1.

Line 31 or 38 of Form 2555 is between 330 and 364 days,

Enter physical presence test dates in Fields 34BD2 and 34ED2 or Fields 35BD2 and 35ED2.

Line 31 or 38 of Form 2555 is 365 days,

Enter bona fide residence test dates for January through December in Fields 34BD1 and 34ED1 or Fields 35BD1 or 35ED1.

Line 31 or 38 of Form 2555 is 329 days or less, or blank,

TY19 and later, check if any one of the following notations is present:

Rev. Proc. 2020-27

adverse conditions

could not meet 330 days test due to emergency (for example: Medical condition or Travel restrictions)

If any one of the notation from the above is present, allow the foreign earned income exclusion and enter the physical presence test dates in YYYYMM format in fields 34BD2 and 34ED2

Exceptions & meaning →

Note:¶

If the deleted Form 2555 was the only foreign aspect of the return, SSPND 610 to renumber as a domestic return.

If the taxpayer notates Claiming Waiver and explains that they expected to meet the time requirement, but the adverse conditions in the foreign country prevented the normal conduct of business, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and continue processing if the foreign country is a qualified waiver country. The only countries that qualify for a waiver for each tax year are listed in the table below.

Tax Year

Countries That Qualify for Waiver

2024

Ukraine, Iraq, Haiti, Bangladesh

2023

Ukraine, Belarus, Sudan, Haiti, Niger, and Iraq

2022

Ethiopia, Iraq, Ukraine, Belarus, China, Mali

2021

Afghanistan, Burma, Chad, Ethiopia, Iraq

2020

All foreign countries

2019

Democratic Republic of Congo, Haiti, Sudan, Venezuela and People’s Republic of China (excluding Hong Kong and Macau)

2018

Democratic Republic of the Congo, Cuba, Iraq, and Nicaragua

2017

None

2016

South Sudan and Turkey

2015

Burundi

2014

Libya, Yemen

2013

Egypt, Lebanon, Pakistan, South Sudan, Yemen

2012

Central African Republic, Sudan, Tunisia

2011

Egypt, Libya, Syria, Yemen

2010

Cote D’Ivoire, Haiti

In some cases, if a prior year exclusion is notated on line 45 of Form 2555 the residency period might not include a part of the tax year of the return. If the taxpayer indicates that the amount on line 45 of Form 2555 is for a prior year exclusion then do not correspond for residency dates.

If the taxpayer provides both dates for Bona Fide Residence Test and Physical Presence Test and they do not qualify, GTSEC 04 and adjust Field 04OTI (delete Foreign Earned Income Exclusion amount), adjust Field 04ADJ (delete Housing Deduction amount), and make sure the foreign earned income is reported in Section 04 and DLSEC 34/35.

Exceptions & meaning →

Note:¶

If the deleted Form 2555 was the only foreign aspect of the return, SSPND 610 to renumber as a domestic return.

If unable to determine dates, SSPND for correspondence with Action Code 215.

Exceptions & meaning →

Error Code 150 - Form 2555(Section 34), Residency Dates Missing¶

EC 150 generates when Section 34 is present with significant entries and the bona fide residence and physical presence test dates are missing.

Exceptions & meaning →

Fields Displayed - EC 150¶

The following fields are displayed for EC 150

2555

Field Title

34BD1

Beginning Date 1 Section 34

34ED1

Ending Date 1 Section 34

34DIN

Declaration

3414R

Number of Days in United States 1

34BD2

Beginning Date 2 Section 34

34ED2

Ending Date 2 Section 34

3418R

Number of Days in United States 2

3419

Wages

3422G

Total Allowances

3425

Meals and Lodging

3433

Housing Expenses

3442

Foreign Earned Income Exclusion

3445

Total Foreign Income/Housing Exclusion Amount

3450

Housing Deduction

Exceptions & meaning →

Invalid Conditions - EC 150¶

EC 150 generates when Section 34 is present, beginning and ending residency dates are missing from Fields 34BD1, 34ED1, 34BD2, and 34ED2, and any of the following fields are significant:

Declaration (Field 34DIN)

Number of Days in United States 1 (Field 3414R)

Number of Days in United States 2 (Field 3418R)

Form 2555 Wages (Field 3419)

Total Allowances (Field 3422G)

Meals and Lodging (Field 3425)

Housing Expense (Field 3433)

Foreign Earned Income Exclusion (Field 3442)

Housing Deduction (Field 3450)

Exceptions & meaning →

Correction Procedures - EC 150¶

Correct coding and transcription errors and misplaced entries on displayed fields.

If bona fide residence test dates (line 10 Form 2555) are available or if physical presence test dates (line 16, Form 2555) are available, then follow the instructions in EC 148 at IRM 3.22.3.143.3.

When dates are missing, check the number of days on line 31 or 38, Form 2555):

If the number of days is 365 days, then enter bona fide residence test dates in YYYYMM format in fields 34BD1 and 34ED1 to cover at least a full calendar year.

If the number of days is between 330 and 364 days, then enter physical presence test dates in YYYYMM format in fields 34BD2 and 34ED2.

If the number of days is 329 days or less, and any dates are missing, SSPND 215 selecting paragraph Q on Form 13900.

Exceptions & meaning →

Exception:¶

TY19 and later, if the dates are missing and any of the following notations are present, Rev. Proc. 2020-27, "adverse conditions" or "could not meet 330 days test due to emergency (for example: Medical condition or Travel restriction)" , then allow the foreign earned income exclusion and enter the physical presence test dates in YYYYMM format in fields 34BD2 and 34ED2.

If the taxpayer notates Claiming Waiver and explains that they expected to meet the time requirement, but the adverse conditions in the foreign country prevented the normal conduct of business, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and continue processing if the foreign country is a qualified waiver country. The only countries that qualify for a waiver for each tax year are listed in the table below.

Tax Year

Countries That Qualify for Waiver

2024

Ukraine, Iraq, Haiti, Bangladesh

2023

Ukraine, Belarus, Sudan, Haiti, Niger, Iraq

2022

Ethiopia, Iraq, Ukraine, Belarus, China, Mali

2021

Afghanistan, Burma, Chad, Ethiopia, Iraq

2020

All foreign countries.

2019

Democratic Republic of Congo, Haiti, Sudan, Venezuela and People’s Republic of China (excluding Hong Kong and Macau)

2018

Democratic Republic of the Congo, Cuba, Iraq, and Nicaragua

2017

None

2016

South Sudan and Turkey

2015

Burundi

2014

Libya, Yemen

2013

Egypt, Lebanon, Pakistan, South Sudan, Yemen

2012

Central African Republic, Sudan, Tunisia

2011

Egypt, Libya, Syria, Yemen

2010

Cote D’Ivoire, Haiti

If unable to determine dates, SSPND 215 selecting paragraph Q on Form 13900.

Exceptions & meaning →

Error Code 152 - Form 2555 (Section 35), Residency Dates Missing¶

EC 152 generates when Section 35 is present with significant entries and the bona fide residence and physical presence test dates are missing.

Exceptions & meaning →

Fields Displayed - EC 152¶

The following fields are displayed for EC 152

2555

Field Title

35BD1

Beginning Date 1 Section 35

35ED1

Ending Date 1 Section 35

35DIN

Declaration

3514R

Number of Days in United States 1

35BD2

Beginning Date 2 Section 35

35ED2

Ending Date 2 Section 35

3518R

Number of Days in United States 2

3519

Wages

3522G

Total Allowances

3525

Meals and Lodging

3533

Housing Expenses

3542

Foreign Earned Income Exclusion

3445

Total Foreign Income/Housing Exclusion Amount

3550

Housing Deduction

Exceptions & meaning →

Invalid Conditions - EC 152¶

EC 152 generates when Section 35 is present, beginning and ending residency dates are missing from Fields 35BD1, 35ED1, 35BD2, and 35ED2, and any of the following fields are significant:

Declaration (Field 35DIN)

Number of Days in United States 1 (Field 3514R)

Number of Days in United States 2 (Field 3518R)

Form 2555 Wages (Field 3519)

Total Allowances (Field 3522G)

Meals and Lodging (Field 3525)

Housing Expense (Field 3533)

Foreign Earned Income Exclusion (Field 3542)

Housing Deduction (Field 3550)

Exceptions & meaning →

Correction Procedures - EC 152¶

Correct coding and transcription errors and misplaced entries on displayed fields.

If bona fide residence test dates (line 10 Form 2555) are available or if physical presence test dates (line 16, Form 2555) are available, then follow the instructions in EC 148 at IRM 3.22.3.143.3.

When dates are missing, check the number of days on line 31 or 38, Form 2555:

If the number of days is 365 days, then enter bona fide residence test dates in YYYYMM format in fields 35BD1 and 35ED1 to cover at least a full calendar year.

If the number of days is between 330 and 364 days, then enter physical presence test dates in YYYYMM format in fields 35BD2 and 35ED2.

If the number of days is 329 days or less, and any dates are missing, SSPND 215 selecting paragraph Q on Form 13900.

Exceptions & meaning →

Exception:¶

On a TY19 and later returns, if the dates are missing and any of the following notations are present, Rev. Proc. 2020-27, "adverse conditions" or "could not meet 330 days test due to emergency (for example: Medical condition or Travel restriction)" , then allow the foreign earned income exclusion and enter the physical presence test dates in YYYYMM format in fields 34BD2 and 34ED2.

If the taxpayer notates Claiming Waiver and explains that they expected to meet the time requirement, but the adverse conditions in the foreign country prevented the normal conduct of business, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and continue processing if the foreign country is a qualified waiver country. The only countries that qualify for a waiver for each tax year are listed in the table below.

Tax Year

Countries That Qualify for Waiver

2024

Ukraine, Iraq, Haiti, Bangladesh

2023

Ukraine, Haiti, Niger, Belarus, Sudan, Iraq

2022

Ethiopia, Iraq, Ukraine, Belarus, China, Mali

2021

Afghanistan, Burma, Chad, Ethiopia, Iraq

2020

All foreign countries

2019

Democratic Republic of Congo, Haiti, Sudan, Venezuela and People’s Republic of China (excluding Hong Kong and Macau)

2018

Democratic Republic of the Congo, Cuba, Iraq, and Nicaragua

2017

None

2016

South Sudan and Turkey

2015

Burundi

2014

Libya, Yemen

2013

Egypt, Lebanon, Pakistan, South Sudan, Yemen

2012

Central African Republic, Sudan, Tunisia

2011

Egypt, Libya, Syria, Yemen

2010

Cote D’Ivoire, Haiti

If unable to determine dates, SSPND 215 selecting paragraph Q on Form 13900.

Exceptions & meaning →

Error Code 154 - Form 2555 and Foreign Income Exclusion¶

EC 154 generates when Section 34/35 is present and the foreign earned income exclusion is greater than the maximum amount allowed.

Exceptions & meaning →

Fields Displayed - EC 154¶

The following fields are displayed for EC 154.

1040

Field Title

Clear Code Field

01TXP

Tax Period

3442

Foreign Earned Income Exclusion Section 34

3445

Total Foreign Earned Income Exclusion - Section 34

3542

Foreign Earned Income Exclusion Section 35

3545

Total Foreign Earned Income Exclusion - Section 35

Exceptions & meaning →

Invalid Conditions - EC 154¶

Section 34 and/or 35 are present and Foreign Earned Income Exclusion is greater than:

$130,000 for tax year 202512

$126,500 for tax year 202412

$120,000 for tax year 202312

$112,000 for tax year 202212

$108,700 for tax year 202112

$107,600 for tax year 202012

$105,900 for tax year 201912

$103,900 for all other years

Exceptions & meaning →

Correction Procedures - EC 154¶

Correct coding and transcription errors and misplaced entries on fields displayed.

Section 34/35 is dollars only.

See “General Requirements for Form 2555” at IRM 3.22.3.42.1 for procedures to follow when the primary and secondary taxpayers have combined their foreign income on one Form 2555, and for a taxpayer with multiple Form 2555 that need to be combined.

If data has been correctly transcribed, change line 42, Form 2555 (Field 3442), and change the appropriate line on Form 1040, limiting the Foreign Earned Income Exclusion to:

$130,000 for tax year 202512

$126,500 for tax year 202412

$120,000 for tax year 202312

$112,000 for tax year 202212

$108,700 for tax year 202112

$107,600 for tax year 202012.

$105,900 for tax year 201912.

$103,900 for tax year 201812.

$102,100 for tax year 201712

$101,300 for tax year 201612

$100,800 for tax year 201512

$99,200 for tax year 201412

Exceptions & meaning →

Note:¶

Be sure to also recompute line 45 (using Lines 36, corrected 42, and 44), if the taxpayer's is claiming the housing exclusion or has any entries on line 44.

Exceptions & meaning →

Error Code 156 - Questionable Earned Income on Form 2555 Form 1040¶

EC 156 generates when:

The sum of Section 34 Foreign Earned Income Exclusion (line 42 of Form 2555) and Section 35 Foreign Earned Income Exclusion (line 42 of Form 2555) is greater than the sum of Wages, Schedule C Profit Loss Computer Section 09/10/11, Nonpassive Income Partnership/S Corporation Amount (Field 1329K), Nonpassive Loss Partnership/S Corporation Amount (Field 1329I) and Schedule F Profit Loss Computer Section 14/15 or

Section 34 Total Foreign Income Exclusion Amount (line 45 of Form 2555) is greater than $0.00 or Section 35 Total Foreign Income Exclusion Amount (line 45 of Form 2555) is greater than $0.00, and the sum of Section 34 Total Foreign Income Exclusion Amount and Section 35 Total Foreign Income Exclusion Amount is not equal to Other Income Amount (Line 8, Schedule 1, of Form 1040).

Exceptions & meaning →

Fields Displayed - EC 156¶

The following fields are displayed for EC 156

1040

Field Title

Clear Code

03TWG

Wages

0403

Combined Schedule C Profit/Loss

Combined Schedule C Profit/Loss Computer

1329I

Partnership/S Corporation Nonpassive Loss

1329K

Partnership/S Corporation Nonpassive Income

0406

Combined Schedule F Profit/Loss

Combined Schedule F Profit/Loss Computer

04OTI

Other Income Amount

3442

Foreign Earned Income Exclusion -Section 34

3445

Total Foreign Earned Income Exclusion - Section 34

3542

Foreign Earned Income Exclusion - Section 35

3545

Total Foreign Earned Income Exclusion - Section 35

S34NP

Section 34 Not Present

S35NP

Section 35 Not Present

Exceptions & meaning →

Correction Procedures (EC 156)¶

Correct coding and transcription errors and misplaced entries on displayed fields.

Read and implement all applicable instructions in this error code before using the clear field.

If a Form 2555 includes foreign earned income for both the primary and secondary taxpayers see the procedures in "General Requirements for Form 2555" at IRM 3.22.3.42.1.

If there are multiple Form 2555 for a single taxpayer then GTSEC 34 or 35 and enter the combined information for all available fields.

If the taxpayer indicates on Form 1040 or on Form 2555 that employer provided meals and lodging are excluded under IRC 119 then allow the additional amount excluded under IRC 119.

All foreign earned income excluded on Form 2555 must be reported as income on the applicable income lines of Form 1040 and Schedule 1. Follow the procedures in EC 218 at IRM 3.22.3.168.2.3.1 (4) for reviewing income and adjusting the return if the taxpayer failed to include foreign earned income on Form 1040. Do not adjust Field 3419, Field 3422G, Field 3425, or similar fields in Section 35.

Exceptions & meaning →

Note:¶

If the taxpayer failed to include any of his/her foreign earned income on page 1 of the Form 1040 and/or Schedule 1, be sure to also assign TPNC 385 when EC 218 generates.

If the taxpayer is excluding unearned income (e.g., interest, dividends, pensions, rental income) on Form 2555 then adjust Section 04 and Section 34/35 using the instructions in EC 218 at IRM 3.22.3.168.2.3.1 (4)(c). Assign TPNC 384 when EC 218 generates.

In most cases when only wages are excluded, Field 04OTI is a negative amount that is the same as the positive amount in Field 3445 and 3545. If Field 04OTI doesn't match the total of Fields 3445 and 3545 follow the table below.

Exceptions & meaning →

Note:¶

If IRC 965 income is notated on line 8, GTSEC 01 and enter F in Field 01RPC and transmit. SSPND 300 when EC 156 redisplays.

And

Then

Line 9, Schedule 1, of Form 1040 includes earned income,

The earned income is identified as wages on line 9 or on an attachment,

Exceptions & meaning →

Note:¶

If the earned income on line 9 is other than wages see paragraph (9) below.

Delete the wages amount from Field 04OTI.

Add the amount to Field 03WG and Field 03TWG.

Line 9, Schedule 1, includes amounts other than the foreign earned income exclusion (e.g., Net Operating Loss (NOL),

A manual calculation shows that the amount from Field 3445 and Field 3545 was transferred correctly to line 9,

Enter a C in the Clear Code field.

Line 45 of Form 2555, is positive,

The exclusion amount transferred to Line 8d is also positive,

Recompute the amount included in Field 04OTI with the exclusion amount as a negative.

If EC 218 generates assign TPNC 308.

Line 45 of Form 2555 is a negative amount,

The exclusion amount on line 8d is positive,

Delete the amount in Field 3445 and 3545,

If EC 156 generates enter "C" in the Clear Code field.

Foreign earned income is reported in Part IV of Form 2555, with wages reported on line 19; business, farming, and professional income on line 20a; and partnership income on line 20b. The foreign earned income on Form 2555 must also be reported as earned income on Form 1040 along with applicable supporting schedules.

Then

The taxpayer is reporting income on line 20a of Form 2555 AND no Schedule C or Schedule F is attached,

SSPND 215 for missing Schedule(s) (See Note below)

The taxpayer is reporting income on line 20b of Form 2555 AND no Schedule E is attached,

SSPND 215 for missing Schedule E

The taxpayer is reporting earned income on Line 8, Schedule 1, Form 1040, does not indicate the income is wages, and excludes the income on Form 2555,

SSPND 215 for missing Schedule C (See Note below)

Exceptions & meaning →

Note:¶

When corresponding for Schedule C and/or Schedule F, follow the instructions in IRM 3.22.3.129.1 to determine if the taxpayer may be liable for self-employment tax. If the taxpayer may be liable, use Form 13900 and select paragraph 6.

If foreign earned income other than wages is excluded then a manual computation is necessary to determine the correct exclusion amount. The taxpayer cannot claim any adjustment, deduction or expense on Form 1040 that is definitely related to the excluded income. The foreign earned income exclusion on Form 2555 must be reduced by the allocable amounts. If earned income other than wages is being reported follow instructions in the table below. Examples can be found in IRM Exhibit 3.22.3-16.

Exceptions & meaning →

Exception:¶

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Steps

Action To Be Taken

Step 1. Calculate the total foreign earned income for the taxpayer claiming the exclusion by adding the taxpayer’s amounts for:

Foreign wages (line 19, Form 2555)

Line 7, Schedule C

Line 9, Schedule F

Line 29a, column (k), Schedule E

Exceptions & meaning →

Note:¶

Only include income that the taxpayer has identified as foreign earned income.

Use this amount as Total Foreign Earned Income (FEI) in the steps below.

Step 2. Percentage for Allocation Divide the amount on line 43, Form 2555 by the Total FEI from Step 1 (maximum exclusion amount is $130,000 for TY 2025)

Exceptions & meaning →

Note:¶

Line 43 is the maximum exclusion amount on line 42 and the housing exclusion on line 36.

Use this percentage in Step 3 and 4.

Step 3. Allocable Adjustments Calculate adjustments by adding the amounts on lines 11-25, Schedule 1 Form 1040 that are directly related to the FEI (e.g., SE tax deduction, moving expenses),

Multiply this amount by the percentage in Step 2 to figure Allocable Adjustments.

Step 4. Allocable Expenses Calculate the total expenses and losses related to the FEI by adding:

Line 28 plus Line 30, Schedule C

Line 33, Schedule F

Line 29b, column (h), Schedule E

Multiply this amount by the percentage in Step 2 to figure Allocable Expenses.

Step 5. Total Foreign Earned Income Exclusion Calculate the FEI exclusion:

Line 43, Form 2555. If field 3445/ 3545 amount was adjusted after following instructions in paragraph 6 use the adjusted amount in the calculation.

Less Allocable Adjustments (Step 3)

Less Allocable Expenses (Step 4)

If the calculated Total Foreign Earned Income Exclusion is greater than or equal to line 45, Form 2555, enter a "C" in the Clear Field.

If the calculated total is less than line 45, Form 2555, then enter the calculated amount in Field 04OTI (as a negative) and Field 3445/3545 (as a positive). If EC 218 generates assign TPNC 303.

Exceptions & meaning →

Note:¶

Adjust Field 04OTI to include any amounts on line 8 other than the FEI exclusion.

Exceptions & meaning →

Error Codes 158 - 160¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns for screen displays, invalid conditions and correction procedures.

Exceptions & meaning →

Error Code 161 - Schedule H Present Prior to 199512 or Loose Schedule H Present¶

EC 161 generates when RPC "Y" is present and Section 44/45 is not present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 161, for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 161¶

The following fields are displayed for EC 161.

1040-NR

1040-SS (sp)/1040-SS

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01RPC

Return Processing Code

03TOT

Total Income

Total Income Computer

S44DP

Section 44 Data Present

S45DP

Section 45 Data Present

Exceptions & meaning →

Error Codes 162 - 187 - Schedule H, Household Employment Taxes¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns for screen displays, invalid conditions, and correction procedures for EC 162-187 that relate to Schedule H, Household Employment Taxes

Exceptions & meaning →

Note:¶

Error Code 181- When a State Code is required and cannot be determined from the return or attachments, SSPND 215 and correspond.

Exceptions & meaning →

Error Code 188 - Form 965-A ERS Validation TY 2018 and Later¶

EC 188 generates on TY 201812 and later Form 1040 and Form 1040-NR. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 188, for invalid conditions.

Exceptions & meaning →

Fields Displayed - EC 188¶

The following fields will display for EC 188.

1040-NR

Field Name

Clear Code Field

01FSC

Filing Status Code

01TXP

Tax Period

01RPC

Return Processing Code

05965

Sec 965 Tax Installment

05TL

Sec 965 Tax Liability (ERS Only)

03TTX

Tentative Tax

Tentative Tax Computer

S76NP

Section 76 Not Present

76YE1

Elect or Transfer Year 1 Number

76YE2

Elect or Transfer Year 2 Number

76YE3

Elect or Transfer Year 3 Number

76YE4

Elect or Transfer Year 4 Number

76YE5

Elect or Transfer Year 5 Number

76AD1

Part 1 Additional Data Indicator

76TL1

Net Tax Liability Transfer 1 Amount

76TL2

Net Tax Liability Transfer 2 Amount

76TL3

Net Tax Liability Transfer 3 Amount

76TL4

Net Tax liability Transfer 4 Amount

76TL5

Net Tax liability Transfer 5 Amount

76ID1

Buyer Seller Transfer Tin 1 Number

76ID2

Buyer Seller Transfer Tin 2 Number

76ID3

Buyer Seller Transfer Tin 3 Number

76ID4

Buyer Seller Transfer Tin 4 Number

76ID5

Buyer Seller Transfer Tin 5 Number

76TR1

Net 965 Tax Liability 1 Amount

76TR2

Net 965 Tax Liability 2 Amount

76TR3

Net 965 Tax Liability 3 Amount

76TR4

Net 965 Tax Liability 4 Amount

76TR5

Net 965 Tax Liability 5 Amount

76AD4

Part 4 Additional Data Indicator

76TOT

Total Deferred Tax Liability Amount

Exceptions & meaning →

Correction Procedures EC 188 Form 1040-NR and Dual-Status Form 1040-NR¶

Correct coding and transcription errors and misplaced entries.

Follow the correction procedures in IRM 3.12.3, Error Resolution, Individual Tax Returns, EC 188. On TY20, Section 965 installment amount will be transcribed from line 20, Schedule 2, Form 1040-NR.

TY19 and prior Form 1040-NR doesn’t have a dedicated line for Section 965 installment amounts. If an IRC 965 installment amount is added as a write-in on line 60 or 61, also enter this amount in Field 05965.

A dual-status filer may report an IRC 965 installment amount on a Form 1040 statement for part of the tax year. ERS entries are required for the proper processing of these liabilities on a dual-status return with Form 1040-NR as the controlling return. Follow the instructions in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 188, and enter the Section 965 installment amount in Field 05965, and the Form 965-A tax liability in Field 05TL.

Exceptions & meaning →

Note:¶

The installment amount is on Schedule 2, line 20, of the Form 1040 statement. If the amount is transcribed in another field on Form 1040-NR, delete and enter in Field 05965.

If corresponding for Form 965-A, select any paragraph 3 through 5 on Form 13900.

Exceptions & meaning →

Error Code 189 - Form 8962 - Verification of Potentially Excessive Amounts (ACA)¶

Refer to IRM 3.12.3 Error Resolution, Individual Income Tax Returns, for screen displays, invalid conditions, and correction procedures.

Exceptions & meaning →

Error Code 190 - Form 8962, Premium Tax Credit, Not Present and Advance Premium Tax Credit¶

All tax returns except for Form 1040-SS (sp) and Form 1040-SS - Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 190, for screen displays, invalid conditions, correction procedures, and Reply and No Reply procedures.

If an EC 190 generates on a TY 2019 Form 1040 MEF return, check to see if the return meets the following criteria:

$1 in line 2b - Taxable Interest

$1 in line 8b - Adjusted Gross Income

If the return meets the above criteria from paragraph (2), research CC INOLE and ENMOD to find a complete domestic address. If INOLE or ENMOD results No account on Masterfile, use CC IRPTR for a better address. If CC IRPTR is not available, use CC IRPOLA for a better address. If a domestic address is found correct the address in Section 01. Once the address is corrected, print Section 01 and correspond for EC 190.

Exceptions & meaning →

Exception:¶

If the return is submitted with a complete domestic address, do not research.

Exceptions & meaning →

Reminder:¶

Examiners are reminded to correct the address before printing Section 01.

Exceptions & meaning →

Fields Displayed - EC 190¶

The following fields are displayed for EC 190.

1040-NR

1040-SS (sp)/1040-SS

Field Title

Clear Code

01FSC

Filing Status Code

01TXP

Tax Period

03DSI

Dependency Status Indicator

01CCC

Computer Condition Code

01SPC

Special Processing Code

01EXC

Exemption Code

94EXV

Exemption Code Verified (ERS input only)

02ARC

ACA Resolution Code (ERS input only)

PTCEX>

AVS Exposure Amount

0521A

Advance Premium Tax Credit (APTC) Repayment

0521A>

Computed APTC Repayment Amount

94ARV

Advance Premium Tax Credit Repayment Verified (ERS input only)

05PTC

Reconciled Premium Tax Credit

05PTC>

Computer Reconciled Premium Tax Credit

S73NP

Section 73 Not Present

S74NP

Section 74 Not Present

Exceptions & meaning →

Error Code 190 - Form 1040-SS (sp) and Form 1040-SS Correction Procedures, Reply…¶

Correction Procedures - The advance payment of Premium Tax Credit cannot be reconciled on Form 1040-SS (sp) or Form 1040-SS. When EC 190 generates, go to the bottom and transmit. If EC 190 regenerates, SSPND 215 and correspond using paragraph 0 (zero) on Form 13975 for Letter 2894C

Reply Procedures - A reply is considered complete when both Form 8962 and a signed Form 1040 or Form 1040-NR is received.

If a complete response is received convert to Form 1040, or Form 1040-NR as indicated by the taxpayer.

When an error code generates, SSPND 490 and take the return to your lead.

Exceptions & meaning →

Note:¶

Lead - send the return to P&A to be sent to HQ.

If the response is incomplete, follow No Reply procedures.

No Reply Procedures - Enter CCC "U" in Field 01CCC and "C" in the Clear Code field.

Exceptions & meaning →

Error Codes 191-199 - Form 8962, Premium Tax Credit¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns for screen displays, invalid conditions, and correction procedures.

Exceptions & meaning →

Error Code 202/502 - Schedule C¶

EC 202 generates when Total Income is not equal to Total Income Computer and a math error is present for Schedule C.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 202, for invalid conditions, and IRM 3.12.3 and IRM 3.22.3.155.2 for correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 202¶

The following fields are displayed for EC 202.

1040-NR

Field Title

01CCC

Computer Condition Code

01RPC

Returns Processing Code

01FPC

Form Processing Code

01ACD

Audit Code Field

03WG

W-2 Wages

0403

Combined Schedule C Profit/Loss

Combined Schedule C Profit/Loss-Computer

0405

Schedule E Profit/Loss

04OTI

Other Income Amount

S09NP

Section 09 Not Present

09STI

Statutory Indicator Section 09

0901

Gross Receipts

0902

Returns and Allowances

0904

Cost of Goods Sold

0906

Schedule C Other Income

09EXP

Schedule C Total Expenses

0930

Expenses for Business Use of Home

09AR

At-Risk Code

09NET>

Schedule C Profit/Loss Computer

09PAL

Passive Activity Loss Section 09 Indicator

S10NP

Section 10 Not Present

10STI

Statutory Indicator Section 10

1001

Gross Receipts

1002

Returns and Allowances

1004

Cost of Goods Sold

1006

Schedule C Other Income

10EXP

Schedule C Total Expenses

1030

Expenses for Business Use of Home

10AR

At-Risk Code

10NET>

Schedule C Profit/Loss Computer

10PAL

Passive Activity Loss Section 10 Indicator

S11NP

Section 11 Not Present

11STI

Statutory Indicator Section 11

1101

Gross Receipts

1102

Returns and Allowances

1104

Cost of Goods Sold

1106

Schedule C Other Income

11EXP

Schedule C Total Expenses

1130

Expenses for Business Use of Home

11AR

At-Risk Code

11NET>

Schedule C Profit/Loss Computer

11PAL

Passive Activity Loss Section 11 Indicator

S17NP

Section 17 Not Present

1702

Net Profit/Loss Non-Farm (Primary)

17TE

Tentative Earnings (Primary)

S21NP

Section 21 Not Present

01FSC

Filing Status Code

01TXP

Tax Period

01RPC

Return Processing Code

03CGL

Capital Gains

Capital Gains Computer

S12NP

Section 12 Not Present

1207

Net Short-Term Gain or Loss Amount

1215

Net Long-Term Gain or Loss Amount

Exceptions & meaning →

Error Code 204/504 - Schedule D¶

EC 204 generates when Total Income is not equal to Total Income Computer and a math error is present on Schedule D.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 204, for invalid conditions and refer to IRM 3.12.3 and IRM 3.22.3 for correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 204/504¶

The following fields are displayed for EC 204.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01RPC

Return Processing Code

01FPC

Form Processing Code

03CGL

Schedule D Profit/Loss

Schedule D Profit/Loss Computer

0404

Other Gains and Losses

12QOF

Dispose of Investment in QOF Checkbox

121AD

Short-Term Basis No Adjustments Sales Amount (1Ad)

121AE

Short-Term Basis No Adjustments Cost Amount (1Ae)

121BD

Short-Term Basis Transactions Sales Amount

121BE

Short-Term Basis Transactions Cost Amount

121BG

Short-Term Basis Adjustments Amount (1Bg)

122D

Short-Term No 1099B Transactions Sales Amount

122E

Short-Term No Basis Transaction Cost Amount (2e)

122G

Short-Term No Basis Adjustments Amount (2g)

123D

Short-Term Sales Price Amount Box C

123E

Short-Term No 1099B Transaction Cost Amount (3e)

123G

Short-Term No 1099B Adjustments Amount (3g)

1205

Short-Term Schedule K-1 Gain Loss Amount (5)

1207

Net Short-Term Gain or Loss Amount

128AD

Long-Term Basis No Adjustments Sales Amount (8Ad)

128AE

Long-Term Basis No Adjustments Cost Amount (8Ae)

128BD

Long-Term Basis Transactions Sales Amount

128BE

Long-Term Basis Transactions Cost Amount

128BG

Long-Term Basis Adjustments Amount (8Bg)

129D

Long-Term No Basis Transactions Sales Amount

129E

Long-Term No Basis Transaction Cost Amount (9e)

129G

Long-Term No Basis Adjustments Amount (9g)

1210D

Long-Term No 1099B Transaction Sales Amount (10d)

1210E

Long-Term No 1099B Transaction Cost Amount (10e)

1210G

Long-Term No 1099B Adjustments Amount (10g)

1212

Long-Term Schedule K-1 Gain Loss Amount (12)

1213

Capital Gain Distribution Amount

1215

Net Long-Term Gain or Loss Amount

12DV

Schedule D Profit/Loss Verified

1218

28 percent Rate Gain or Loss Amount

1219

Unrecaptured Section 1250 Gain Amount

514E

Form 4952 Disposition of Investment Property Gain Amount

514G

Form 4952 Investment Income Election Amount

S51NP

Section 51 Not Present

S12NP

Section 12 Not Present

12ZSA

F8949 Z Code QOF Short Term Investment Adjustment Amount

12YSA

F8949 Y Code Recaptured Deferral QOF Short Term Investment Amount

12ZLA

F8949 Z Code QOF Long Term Investment Adjustment Amount

12YLA

F8949 Y Code Recaptured Deferral QOF Long Term Investment Amount

6707

Selling Price Less Mortgage and Debts

6721

Payments Received During Year

6723

Payments Received in Prior Years

Exceptions & meaning →

Note:¶

The fields displayed for EC 504 will include a Clear Code field and 02NC> and all other fields will be the same as EC 204.

Exceptions & meaning →

Correction Procedures - EC 204 Form 1040-NR¶

Follow instructions below in If Then chart.

Then

Code & Edit dummies a Schedule D because Form 8288-A income was reported on Schedule NEC of Form 1040-NR,

Assign TPNC 404.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 204¶

The following Taxpayer Notice Codes are used for EC 204.

TPNC

Literal

Any previously assigned TPNC

100

122

Computed or transferred capital gains or losses incorrectly; limited to $3,000 ($1,500 MFS)

218

We computed your tax for you.

404

Based on the information you reported, it appears that you didn’t include capital gains from Form 8288-A.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

Exceptions & meaning →

Note:¶

The above literals are abbreviated. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns for complete literal for Domestic TPNCs, refer to Exhibit 3.22.3-9 for complete literal for International TPNCs.

Exceptions & meaning →

Error Code 206/506 - Schedule E¶

EC 206 generates when Total Income is not equal to Total Income Computer and a math error is present on Schedule E.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 206, for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Note:¶

Form 6198 is a valid form with Form 1040-NR, search Form 1040-NR for an attached Form 6198 with paper and MeF and if not transcribed, GTSEC 31 to enter amounts in the available fields.

Exceptions & meaning →

Fields Displayed - EC 206¶

The following fields are displayed for EC 206.

1040-NR

Field Title

01ACD

Audit Code Field

0405

Schedule E Profit/Loss

Schedule E Profit/Loss Computer

S13NP

Section 13 Not Present

1323D

Total Depreciation for all Properties (line 18)

1323E

Total Expenses for all Properties (line 20)

1324

Rents and Royalties Income

1325

Rents and Royalties Loss

1326>

Rents and Royalties Profit/Loss Computer

1327

Passive Income Indicator

1330

Partnership and S Corporation Income

1331

Partnership and S Corporation Loss

1332>

Partnership and S Corporation Profit/Loss Computer

1335

Estate and Trust Income

1336

Estate and Trust /Loss

1337>

Estate and Trust Profit/Loss Computer

1339

Real Estate Mortgage (REMIC)

1340

Farm Rent Income/Loss

1342

Farm Income

1343

Reconciliation for Real Estate Professionals

Exceptions & meaning →

Note:¶

The fields displayed for EC 506 will include a Clear Code field and 02NC> and all other fields will be the same as EC 206.

Exceptions & meaning →

Error Code 208/508 - Schedule F¶

EC 208 generates when Total Income is not equal to Total Income Computer and a math error is present on Schedule F.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 208 for invalid conditions, correction procedures and allowable TPNCs.

Form 6198 is a valid form with Form 1040-NR, search Form 1040-NR for an attached Form 6198 with paper and MeF and if not transcribed, GTSEC 31 to enter amounts in the available fields.

When all Schedule F income is being excluded under IRC 933 on Form 1040 Code & Edit is instructed to "X" out the schedule and prepare a dummy schedule by entering the NAICS code and≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. If Code & Edit did NOT prepare the dummy schedule as required, use Fields 1433 and 1533 as appropriate to make Schedule F equal zero. DO NOT delete Sections 14 and 15.

Exceptions & meaning →

Fields Displayed - EC 208¶

The following fields are displayed for EC 208.

1040-NR

Field Title

01CCC

Computer Condition Code

01ACD

Audit Code Field

03WG

W-2 Wages

0405

Schedule E Profit/Loss

0406

Schedule F Profit/Loss

Schedule F Profit/Loss Computer

0407

Taxable Unemployment Compensation

04OTI

Other Income

S13NP

Section 13 Not Present

1330

Partnership/S Corporation Income

1331

Partnership/S Corporation Loss

1340

Farm Rental Income/Loss

1342

Farm and Fishing Income

S14NP

Section 14 Not Present

1409

Gross Profits Cash

1433

Total Farm Expense

14AR

At-Risk Code IMF

1450

Gross Profit Accrual

1434>

Schedule F Profit/Loss Computer

14PAL

Passive Activity Loss Section 14 Indicator

S15NP

Section 15 Not Present

1509

Gross Profits Cash

1533

Total Farm Expenses

15AR

At-Risk Code IMF

1550

Total Gross Income

1534>

Schedule F Profit/Loss Computer

15PAL

Passive Activity Loss Section 15 Indicator

S17NP

Section 17 Not Present

1701A

Net Farm Profit/Loss

1701B

Social Security Retirement or Disability Benefits and Conservation Reserve Program Payment Exclusions

17TE

Tentative Earnings (Primary)

2104

Primary Earned Income

S21NP

Section 21 Not Present

Exceptions & meaning →

Note:¶

The fields displayed for EC 508 will include a Clear Code field and 02NC> and all other fields will be the same as EC 208.

Exceptions & meaning →

Error Code 209 - Combined SE Tax¶

EC 209 generates when Combined SE Tax is not equal to Combined SE Tax Computer.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 209, and IRM 3.22.3 for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 209¶

The following fields are displayed for EC 209.

1040-NR

1040-SS (sp)/1040-SS

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01CCC

Computer Condition Code

01RPC

Return Processing Code

05204

0503

Combined SE Tax

Combined SE Tax Computer

S17NP

Section 17 Not Present

17SSN

SE SSN-Primary

1701A

Net Farm Profit/Loss

1701B

Social Security Retirement or Disability Benefits and Conservation Reserve Program Payment Exclusions

1702

Net Non-Farm Profit/Loss

17TE

Tentative Earnings

1704B

Optional Method Income Amount

17CHW

Tentative Church Wages

17TNE>

Total Net Earnings Computer

17TSW

Total Social Security Wages Covered

17SIV

Self Employed Social Security Income Computer Section 17 Amount Verified

1710>

SE SS Tax Computer

1711>

SE Medicare Tax Computer

17SET>

SE Tax Computer

17SEV

SE Tax Verified

17MCD

SE Method Code

88CD1

Unallowable Code 1

88AM1

Unallowable Amount 1

88TXA

Unallowable Tax Adjustment

S18NP

Section 18 Not Present

18SSN

SE SSN-Primary

1801A

Net Farm Profit/Loss

1801B

Social Security Retirement or Disability Benefits and Conservation Reserve Program Payment Exclusions

1802

Net Non-Farm Profit/Loss

18TE

Tentative Earnings

1804B

Optional Method Income Amount

18CHW

Tentative Church Wages

18TNE>

Total Net Earnings Computer

18TSW

Total Social Security Wages Covered

18SIV

Self Employed Social Security Income Computer Section 18 Amount Verified

1810>

SE SS Tax Computer

1811>

SE Medicare Tax Computer

18SET>

SE Tax Computer

18SEV

SE Tax Verified

18MCD

SE Method Code

Exceptions & meaning →

Invalid Conditions - EC 209¶

EC 209 generates when the difference between Combined SE Tax (Field 05204 Form 1040 and Form 1040-NR; Field 0503 Form 1040-SS (sp)/ Form 1040-SS) and Combined SE Tax Computer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Exceptions & meaning →

Correction Procedures - EC 209 Form 1040 and Form 1040-NR¶

If a taxpayer is a resident of American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, or U.S. Virgin Islands and files Form 1040 reporting self-employment taxes on Schedule 2, line 4, and the only income is from a Schedule C, Z, E (Part II present), or F, SSPND 610 to renumber as Form 1040-SS.

Exceptions & meaning →

Caution:¶

If the taxpayer is claiming wages and/or withholding, do not convert.

Totalization Agreements or Bilateral Social Security Agreements were enacted in order to eliminate dual coverage and dual contributions to the social security system for the same work. This ensures that Social Security taxes (including SE tax) are paid only to one country. If the taxpayer resides in one of the countries listed below, enter RPC "S" :

Australia

Austria

Belgium

Brazil

Canada

Chile

Czech Republic

Denmark

Finland

France

Germany

Greece

Hungary

Iceland

Ireland

Italy

Japan

Korea (South)

Luxembourg

The Netherlands

Norway

Poland

Portugal

Slovak Republic

Slovenia

Spain

Sweden

Switzerland

United Kingdom (England, Northern Ireland, Scotland, and Wales)

Uruguay

Exceptions & meaning →

Note:¶

If the taxpayer attached a Schedule SE but did not include the amount in total tax, also DLSEC Section 17.

If the taxpayer resides in one of the countries listed above (1) and is paying SE Tax, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ follow instructions in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 209 for SE Tax.

Exceptions & meaning →

Correction Procedures - EC 209 Form 1040-SS (sp)/Form 1040-SS¶

Form 1040-SS (sp)/Form 1040-SS

Then

SE earnings are less than $434,

Form 1040-SS

DLSEC Section 17/18

Assign TPNC 472

Form 1040-SS (sp)

DLSEC Section 17/18

Assign TPNC 487

The taxpayer computed SE tax incorrectly,

Form 1040-SS - Assign TPNC 473.

Form 1040-SS (sp) - Assign TPNC 488.

The taxpayer does not qualify to use the optional method,

Form 1040-SS - Assign TPNC 272

Form 1040-SS (sp) - Assign TPNC 485.

For TY 2010, taxpayers are instructed to reduce their self-employment earnings reported on line 3 of Schedule SE by the deduction for self-employed health insurance. For Form 1040(PR)/Form 1040-SS filers they are instructed to enter "SEHI" and the amount on the dotted line next to Form 1040-SS, Part V, line 1b.

Then

The taxpayer indicates "SEHI"

Enter the amount reported in Field 1701B.

Whenever the FSC is 2 and it appears that the taxpayer is attempting to pay SE tax for both self and spouse but only one Schedule SE is present SSPND 215 and select paragraph L on Form 13975 for tax years 2022 and prior, for tax years 2023 and forward select paragraph K.

Form 1040-SS (sp)/Form 1040-SS with Form 4137, Social Security and Medicare Tax on Unreported Tip Income or Form 8919, Uncollected tax on Social Security and Medicare tax on Wages

Then

The taxpayer has Form 4137 or Form 8919 attached,

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ entry and enter the amount in Field 17SEV.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 209¶

The following Taxpayer Notice Codes are used for EC 209.

TPNC

Literal

Any previously assigned TPNC

100

121

Computed or transferred Schedule C incorrectly.

127

Computed or transferred Schedule F incorrectly.

128

You didn't limit the amount of loss on Schedule C, E, or F by the amount at-risk on Form 6198.

135

USDA Settlement income not included in Schedule F computation. Moved from your tax return to page 1 of your Schedule F.

158

We changed the deductible part of self-employment tax on your tax return. The entry for the deductible part of self-employment tax was missing, figured incorrectly or Schedule SE was incomplete or not attached.

218

We computed your tax for you.

268

Computed or transferred SE Tax from Schedule SE to Form 1040 incorrectly.

269

Adjusted Schedule SE to reflect your true net earnings before multiplying .9235.

270

Transferred Schedule F amount to Schedule SE incorrectly.

271

Transferred Schedule C amount to Schedule SE incorrectly.

272

You don't qualify to use the optional method.

273

We reduced or removed the total self-employment tax on page 2 of your tax return. Your net earnings were less than $400; therefore, they are not subject to self-employment tax.

550

No reply, Form 6198, "Some is not at-risk" .

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

580

We computed self-employment tax on your tax return for the self-employment income you reported. Since you included self-employment income in computing your Earned Income Credit (EIC), you must pay self-employment tax to receive EIC.

TPNC

Literal

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

472

You don’t owe self-employment tax when your net earnings from self-employment are less than $434, as shown on Form 1040-SS. We changed your self-employment tax accordingly.(Form 1040-SS)

473

You figured or transferred your social security self-employment tax incorrectly on Form 1040-SS. We changed your self-employment tax accordingly.

474

You figured your refund or the amount you owe incorrectly on Form 1040-SS.

TPNC

Literal (Form 1040-SS (sp))

374

We changed the refund or amount you owe based on the information you provided in response to our previous correspondence.

Corregimos su contribución basado en la información que usted proveyó en la contestación a nuestra correspondencia anterior.

485

You don't qualify to use the optional method on Form 1040-SS (sp). We changed your self- employment tax accordingly.

Usted no califica para usar el metado opcional en la Forma 1040-SS (sp). Por lo tanto, le cambiamos su contribucion sobre el trabajo por cuenta propia.

486

You didn’t multiply your self-employment earnings by .9235, as shown on Form 1040-SS (sp). We changed your self-employment tax accordingly.

Usted no multiplicó sus ganancias del trabajo por cuenta propia por .9235, como esta mostrado en la Forma 1040-SS (sp). Por lo tanto, le cambiamos su contribución sobre el trabajo por cuenta propia.

487

You don't owe self-employment tax when your net earnings from self-employment are less than $434 Form 1040-SS (sp). We changed your self-employment tax accordingly.

Usted no debe contribucion sobre el trabejo por cuenta propia, cuando su ganancias netas del trabajo por cuenta propia con menores de $434, como esta mostrado en la Forma 1040-SS (sp). Por lo tanto, le cambiamos su contribucion sobre el trabajo por cuenta propia.)

488

You figured or transferred your social security self-employment tax incorrectly on Form 1040-SS (sp). We changed your self-employment tax accordingly.

Usted calculó o transfirió incorrectamente la contribución sobre el trabajo por cuenta propia. Por lo tanto, le cambiamos su contribución sobre el trabajo por cuenta propia.

489

You figured your refund or the amount you owe incorrectly on Form 1040-SS (sp).

Usted calculó incorrectamente su reintegro o la cantidad que usted adeuda en la Forma 1040-SS (sp).

Exceptions & meaning →

Note:¶

The above literals are abbreviated. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, for complete literal for Domestic TPNCs, refer to Exhibit 3.22.3-9 for complete literal for International TPNCs.

Exceptions & meaning →

Error Code 210 - SE Tax Verified Present-SE Income Computer Zero¶

EC 210 generates when Combined SE Tax Computer is significant, SE SS Income Computer and SE Medicare Income Computer for both Schedules SE is not significant.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 210, for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 210¶

The following fields are displayed for EC 210.

1040-NR

1040-SS (sp)/1040-SS

Field Title

Clear Code

01FSC

Filing Status Code

01TXP

Tax Period

05204

0503

Combined SE Tax

Combined SE Tax Computer

17SSN

SE SSN

1701A

Net Farm Profit/Loss

1701B

Social Security Retirement or Disability Benefits and Conservation Reserve Program Payment Exclusions

1702

Net Non-Farm Profit/Loss

17TE

Tentative Earnings

1704B

Optional Method Income Amount

17CHW

Tentative Church Wages

17TNE>

Total Net Earnings Computer

17TSW

Total Social Security Wages Covered

17SIV

Self Employed Social Security Income Computer Section 17 Amount Verified

1710>

SE Social Security Tax Computer

1711>

SE Medicare Tax Computer

17SET>

SE Tax Computer

17SEV

SE Tax Verified

18SSN

SE SSN

1801A

Net Farm Profit/Loss

1801B

Social Security Retirement or Disability Benefits and Conservation Reserve Program Payment Exclusions

1802

Net Non-Farm Profit/Loss

18TE

Tentative Earnings

1804B

Optional Method Income Amount

18CHW

Tentative Church Wages

18TNE>

Total Net Earnings Computer

18TSW

Total Social Security Wages Covered

18SIV

Self Employed Social Security Income Computer Section 18 Amount Verified

1810>

SE Social Security Tax Computer

1811>

SE Medicare Tax Computer

18SET>

SE Tax Computer

18SEV

SE Tax-Verified

Exceptions & meaning →

Error Code 211/511 - Deduction for Self-Employment Tax¶

EC 211 generates when Total Adjustments is not equal to Total Adjustments Computer and there is a difference between Deduction for SE Tax and Deduction SE Tax Computer.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 211, for invalid conditions, and IRM 3.12.3 and IRM 3.22.3 for correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 211¶

The following fields are displayed for EC 211.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01CCC

Computer Condition Code

01RPC

Return Processing Code

04DSE

Deduction for Self-Employment

Deduction for Self-Employment Computer

94SEV

Deduction for SE Tax Verified (ERS only)

04SEP

SE Retirement Plans Deduction

04HID

Self-Employment Health Insurance Deduction

05204

Combined SE Tax

Combined SE Tax Computer

17SSN

SE SSN

1701A

Net Farm Profit/Loss

1701B

Social Security Retirement or Disability Benefits and Conservation Reserve Program Payment Exclusions

1702

Net Non-Farm Profit/Loss

17TE

Tentative Earnings

1704B

Optional Method Income

17CHW

Tentative Church Wages

17TNE>

Total Net Earnings Computer

17TSW

Total Social Security Wages Covered

17SIV

Self Employed Social Security Income Computer Section 17 Amount Verified

1710>

SE Social Security Tax Computer

1711>

SE Medicare Tax Computer

17SET>

SE Tax Computer

17SEV

SE Tax-Verified

17MCD

SE Method Code

S17NP

Section 17 Not Present

Exceptions & meaning →

Note:¶

The fields displayed for EC 511 will include a Clear Code field and 02NC> and all other fields will be the same as EC 211.

Exceptions & meaning →

Correction Procedures EC 211¶

If the taxpayer did not take the SE Tax Deduction or figured it incorrectly, assign TPNC 158.

If a taxpayer is from the USVl, AS, GU, CNMI, or PR and files Form 1040 with a Schedule C, E (Part II present), F, or SE to report self-employment taxes in lieu of Form 1040-SS (sp) or 1040-SS, SSPND 610 to renumber as Form 1040-SS.

Exceptions & meaning →

Caution:¶

If the taxpayer is claiming wages and/or withholding, do not convert.

If a bona fide resident of a U.S. territory excludes all self-employment income from gross income under IRC 931 or IRC 933, then the deduction on Form 1040 Schedule 1, line 15, is not allowed. Follow these procedures to resolve EC 211:

Enter RPC 6 to bypass the computer generation of the SE tax deduction. If other taxable income isn’t reported on Form 1040, then this will resolve EC 211.

If taxable income other than self-employment income is reported on the return, assign TPNC 350.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 211¶

The following Taxpayer Notice Codes are used for EC 211.

TPNC

Literal

Any previously assigned TPNC

100

158

We changed the deductible part of self-employment tax on your tax return.

159

Disallowed SE tax deduction. Should have used Form 4137.

160

Disallowed SE deduction because no SE tax reported.

273

We reduced or removed the total self-employment tax on page 2 of your tax return. Your net earnings were less than $400; therefore, they are not subject to self-employment tax.

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

350

We didn’t allow the amount claimed as a deductible part of self-employment tax on your Form 1040. Information on your return indicates that this amount relates to the self-employment income you excluded under Section 931 or Section 933 of the Internal Revenue Code.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

Exceptions & meaning →

Note:¶

The above literals are abbreviated. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns for complete literal for Domestic TPNCs.

Exceptions & meaning →

Correction Procedures - EC 214¶

Correct coding and transcription errors and misplaced entries on displayed fields.

If the taxpayer excludes income using Form 2555, IRC 933 (Puerto Rico) or IRC 931 (Form 4563)≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ enter the amount in Field 94TSV, Form 1040.

Exceptions & meaning →

Note:¶

If the taxpayer did NOT enter an amount for gross social security, DO NOT research IRPTR or correspond, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

When a valid Form 2555 is NOT attached to exclude income AND the taxpayer is a U.S. citizen living in one of the countries listed below, the taxpayer is exempt from United States tax on their Social Security Benefits. Enter a "1" in Field 94TSV, Form 1040. If EC 214 generates again assign TPNC 131.

Canada

Egypt

Germany

Ireland

Israel

Italy (Must also be a citizen of Italy for exemption to apply)

Romania

United Kingdom (England, Northern Ireland, Scotland and Wales)

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 214¶

The following Taxpayer Notice Codes are used for EC 214.

TPNC

Literal

Any previously assigned TPNC

100

131

Figured taxable social security benefits incorrectly.

132

You must deduct any repayment over the amount of Social Security benefits received in the tax year on Schedule A.

147

You or your spouse claimed more than the amount allowed for your IRA Deduction.

149

You can't claim an IRA contribution unless your participation in the KEOGH, SIMPLE, or Simplified Employee Pension Plan (SEP) was considered inactive.

218

We computed your tax for you.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

Exceptions & meaning →

Note:¶

The above literals are abbreviated. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, for complete literal for Domestic TPNCs.

Exceptions & meaning →

Error Code 215 - Validation on MeF Form 1040-NR¶

EC 215 generates on Form 1040-NR when Special Processing Code (SPC) "U" is present. SPC U is assigned by Modernized E File (MeF) to Forms 1040-NR that require ERS review during processing.

Exceptions & meaning →

Fields Displayed - EC 215¶

The following fields are displayed for EC 215.

1040-NR

Field Displayed

Clear Field

01FSC

Filing Status Code

01TXP

Tax Period

01SPC

Special Processing Code

03WG

W-2 Wages

04SFG

Scholarship and Fellowship Grants

03TEX

Income Exempt by Treaty

03TOT

Total Income

Total Income Computer

S46NP

Section 46 Not Present

03TNC

Tax on Income Not Effectively Connected

Tax on Income Not Effectively Connected Computer

46TR1

First Specified Taxpayer Percent

46TR2

Second Specified Taxpayer Percent

4613A

Ten Percent Taxable Income Amount

4613B

Fifteen Percent Taxable Income Amount

4613C

Thirty Percent Taxable Income Amount

46131

First Percent Specified Taxable Income Amount

46132

Second Percent Specified Taxable Income Amount

0325G

Withholding - Form 1042-S

Exceptions & meaning →

Correction Procedures - EC 215 Form 1040-NR¶

SPC U is generated by Modernized E-File (MeF) on Form 1040-NR to identify returns requiring review by ERS tax examiners. On paper-filed Form 1040-NR, Code & Edit reviews certain conditions and edits taxpayer amounts on the return to generate error codes for ERS correction. MeF programming doesn’t edit taxpayer amounts on returns. Instead, MeF generates EC 215 by assigning SPC U when any of these conditions are present:

Wages on line 1a (TY19, line 8) of Form 1040-NR equal the wages on Form W-2 less the treaty exempt income on line 1k for TY22 and later (TY20 - TY21, 1c; TY19, line 22).

For TY21 and prior A Grant Scholarship Statement is present to support Scholarship and fellowship grants excluded on line 10c (TY19, line 31), Form 1040-NR. [MeF Code & Edit Values Description "Grant Statement from College or Educational Institution]"

The recipient TIN in Box 13e of Form 1042-S is blank and the recipient name in Box 13a doesn’t match the taxpayer on page 1 of Form 1040-NR. [MeF Code & Edit Values Description "Blank Recipient TIN]"

Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), is attached to the return. [MeF Code & Edit Values Description "8833]"

Use the MeF Code & Edit Values Descriptions on the MeF return and the fields displayed on the EC 215 ERS screen as a guide to identifying the error condition that requires ERS review. Follow the instructions in paragraphs (3) through (6) below before clearing EC 215. More than one condition may be present on a return.

Field 03TEX - If Field 03TEX has an amount present use the instructions in EC 218, Line 1k, TY22 and later (TY20 -TY21, Line 1c; TY19, Line 22) - Income Exempt by a Tax Treaty at IRM 3.22.3.168.2.2.1 (3) to validate treaty exemption claims described on Form 8833 or on other attachments.

Field 0325G - MeF may identify consistency errors with Form 1042-S and the taxpayer’s TIN or name (see condition (1)(c) above).

If there is no name in Box 13a for the recipient and no TIN in Box 13e on Form 1042-S then delete the withholding on line 25g (TY19, line 62d) and assign TPNC 441 when EC 366 generates.

If the TIN is missing in Box 13e on Form 1042-S and the recipient named in Box 13a is not the taxpayer on the return, then adjust the return to include only the taxpayer’s income and withholding. Assign TPNC 334 If the recipient name is the taxpayer on the return then enter "C" in the Clear Code field.

After following the steps in paragraphs (3) through (5) enter "C" in the Clear Code field and assign TPNCs when errors generate for any adjustments made. Don’t delete SPC U.

Exceptions & meaning →

Fields Displayed - EC 216¶

The following fields are displayed for EC 216 on Form 1040.

1040

Field Title

03GSS

Gross Social Security

03TSS

Taxable Social Security Benefits

Taxable Social Security Benefits Computer

94TSV

Taxable Social Security Benefits Verified

34DP

Section 34 Present

35DP

Section 35 Present

Exceptions & meaning →

Invalid Conditions - EC 216¶

EC 216 generates when the FLC is 20 and all of following conditions are present:

Document Code is 05, 06, 11, 12, 21 or 22

Section 34/35 is present

Field 03TSS is present

Field 94TSV is not present

Exceptions & meaning →

Correction Procedures - EC 216¶

Correct coding and transcription errors and misplaced entries on displayed fields.

See table below:

If the taxpayer computed taxable amount to be

Then

More than or equal to the underprint

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and enter the amount in Field 94TSV, Form 1040.

Less than the underprint

Assign TPNC 131.

If the taxpayer excludes earned income using Form 2555 and reports taxable social security, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ enter the amount in Field 94TSV.

Exceptions & meaning →

Caution:¶

When processing international cases, care must be taken to follow all instructions in IRM 3.12.2, Individual Master File Error Resolution General Instructions, concerning identifying and forwarding possible refund scheme, frivolous and fraudulent cases to the appropriate areas of the Service.

Exceptions & meaning →

Error Code 217 - Total Income $1,000,000,000¶

EC 217 generates when either Total Income Computer or Total Adjusted Gross Income Computer equals or exceeds $1,000,000,000.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 217, for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 217¶

The following fields are displayed for EC 217.

1040-NR

Field Title

Clear Code

01FSC

Filing Status Code

01TXP

Tax Period

03TWG

Total Wages Amount

04SFG

Scholarship or Fellowship

03TEX

Treaty Exempt Income Amount

03INT

Taxable Interest

03TEI

Tax Exempt Interest

03DIV

Taxable Dividend Amount

03QD

Qualified Taxable Dividends Amount

03GIR

Gross IRA Distributions

03TIR

Taxable IRA Distributions

03GPA

Gross Pensions and Annuities

03TPA

Taxable Pensions and Annuities

0401

State Income Tax Refund

0404

Supplemental Gains or Losses

0407

Taxable Unemployment Compensation

04OTI

Other Income Amount

03ADD

Additional Income Amount

Additional Income Amount Computer

03TOT

Total Income

Total Income Computer

Exceptions & meaning →

Error Code 218/518 - Total Income Difference¶

EC 218 generates when the total income is not equal to total income computer.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 218, for invalid conditions and refer to both IRM 3.12.3 and IRM 3.22.3 for correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 218¶

The following fields are displayed for EC 218.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01SPC

Special Processing Code

01CCC

Computer Condition Code

01FPC

Form Processing Code

01RPC

Return Processing Code

01ACD

Audit Code Field

03WG

W-2 Wages

03TWG

Total Wages Amount

0401

State Income Tax Refund

04SFG

Scholarship or Fellowship Grants

03TEX

Income Exempt or Treaty

03INT

Taxable Interest

03TEI

Tax-Exempt Interest

03DIV

Ordinary Dividend Amount

03QD

Qualified Dividend Amount

03GIR

Gross IRA Distributions

03TIR

Taxable IRA Distributions

03GPA

Gross Pensions and Annuities

03TPA

Taxable Pensions and Annuities

0401

State Income Tax Refund

0404

Other Gains/Losses

0407

Taxable Unemployment Compensation

04OTI

Other Income

03ADD

Additional Income Amount

Additional Income Amount Computer

03TOT

Total Income

Total Income Computer

Exceptions & meaning →

Note:¶

The fields displayed for EC 518 will include a Clear Code field and Field 02NC> and all other fields will be the same as EC 218.

Note:¶

If a taxpayer provides evidence in lieu of IRC 893(b) certification, accept the evidence if it establishes that the services rendered by the employee are similar to the services rendered by employees of the U.S. government in foreign countries, and that the foreign government grants an equivalent tax exemption to such U.S. government employees. For example, the taxpayer may provide a copy of a foreign statute or regulation that shows an equivalent tax exemption to U.S. government employees in that country.

The number of the Presidential Executive Order if an employee of an international organization;

Exceptions & meaning →

Income Code 16 with an Exemption Code of 00 will be present on Form 1042-S if the taxpayer did not provide the payer with a Form W8-BEN. In these cases, the payer will withhold federal income (rates vary) and the income is fully taxable unless the taxpayer provides valid treaty information on the return or attachments

And

Then

Exemption Code is 4 in box 3a of Form 1042-S,

Income Code is 16, and

Form 1042-S was issued by a college or university,

Delete the income where reported, and

Enter the exempt income in Field 03TEX (Form 1040-NR), and

Assign TPNC 141.

Exemption Code is 4 in box 3a of Form 1042-S,

Income Code is NOT 16 on Form 1042-S,

A valid tax treaty article must be provided. Follow instructions for tax treaty exemption claims at IRM 3.22.3.168.2.2.1 (3) (Form 1040-NR).

Exemption Code is 2 in box 3a of Form 1042-S,

The taxpayer includes the income as taxable income and has not excluded it on the return,

Delete the income, and

Assign TPNC 141.

Exceptions & meaning →

Note:¶

A tax treaty article is not required with Exemption Code 02.

Form 1040-NR is prepared by USAID,

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Exceptions & meaning →

Note:¶

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Gambling Winnings are not effectively connected income and should be reported on Schedule NEC of the Form 1040-NR. Follow the instructions in EC 311 at IRM 3.22.3.233.

Exceptions & meaning →

Exception:¶

Schedule 1, line 8r (TY 20 and 21, Line 1b;(TY19, Line 12) - Scholarship or Fellowship Grants

A scholarship or fellowship grant is reported on Schedule 1, line 8r ( TY21 and 20 Form 1040, line 1b; TY19, Form 1040, line 12) of Form 1040-NR and included in the total on Schedule 1, line 9 which is transcribed into Field 04OTI. An entry on Schedule 1, line 8r ( TY21 and 22 Form 1040, line 1b; TY19, Form 1040, line 12) can be from a Form W-2 or Form 1042-S with Income Code 16 issued by a college, university or other education institution, or supported by a statement from the educational institution (on school letterhead) that identifies the income as a scholarship or fellowship grant. If the income is exempted with a tax treaty, the exempted amount is not reported on Schedule 1, line 8r ( TY21 and 22 Form 1040, line 1b; TY19, Form 1040, line 12) but is reported on line 1k (TY20 and TY21, 1c; TY19, line 22) and the amount is not used in the total taxable income calculation for line 9 (TY19, line 23). Ensure the scholarship or fellowship amount is included in field 04OTI, See IRM 3.22.3.11.4 for general information on scholarship or fellowship grant income

For TY21 and prior if C&E has moved scholarship or fellowship grant income to Schedule 1, line 8r ensure that the amount has been included in Field 04OTI as long as the taxpayer has included it in their Schedule 1, Line 9 total as well.

For all tax years If scholarship or fellowship grant income is reported on Form 1040-NR follow the steps in the chart below

Then

Form 1042-S is attached with Income Code 16 and Chapter 3 Exemption Code 4, and the form was issued by a college or university

Delete the income where reported, and enter the amount in Field 03TEX.

Scholarship or fellowship grant income is not reported as taxable income and the taxpayer indicates that the income is exempt because of a tax treaty,

Verify the tax treaty claim using Exhibit 3.22.3-1.

Exceptions & meaning →

Note:¶

If the taxpayer doesn’t provide the treaty country, treaty article, and amount then SSPND 215 and correspond.

The tax treaty claim is valid,

Delete the income where reported and enter that amount in Field 03TEX.

Exceptions & meaning →

Note:¶

For TY21 and prior If the taxpayer entered the treaty exempt amount on line 10c (TY19, line 31), enter in Field 03TEX.

The tax treaty claim is not valid,

Ensure that the income amount is included in Field 04SFG.

Delete the amount from Field 03TEX.

If EC 218 generates, assign TPNC 409

Exceptions & meaning →

Note:¶

If the taxpayer reported the scholarship or fellowship grant income on line 1a (TY19, line 8), delete the income from 03WG and add to Field 04SFG.

Line 1k (TY20 and TY21, Line 1c; TY19, Line 22) - Income Exempt by a Tax Treaty

Refer to Schedule 1, line 8r ( TY21 and 22 Form 1040, line 1b; TY19, Form 1040, line 12) in EC 218 if a taxpayer is excluding scholarship or fellowship grant income based on a tax treaty claim.

If income is exempt from taxation on Form 1040-NR based on a tax treaty the exempted amount is reported on line 1k (TY 20 and TY 21, 1c; TY19, line 22) and the income is not included on lines 1 through 9 of Form 1040-NR or lines 1 through 9 of Schedule 1(TY20 lines 1 through 8 of Schedule 1; TY19, lines 8 through 21 of Form 1040-NR). The taxpayer must provide these (3) items to support the claim: the treaty country, the treaty article number, and the exempt amount.

Exceptions & meaning →

Note:¶

The Residence articles (generally article IV) in tax treaties merely state prerequisites for obtaining treaty benefits and do not, themselves, provide any other treaty benefit. If Article IV is the only treaty article provided in response to Item "L" on Schedule OI of Form 1040-NR then the exemption claim is not valid.

Exceptions & meaning →

Note:¶

A nonresident alien is required to report only U.S. source income. See "Line 1a (TY19, Line 8) - Wages" above if the taxpayer indicates that the excluded income is non-U.S. source income.

If the taxpayer has a J-1 visa and is claiming a tax treaty exemption using a treaty article for Students, Trainees, Teachers and Researchers then see also IRM 3.22.3.168.2.2.2 for determining eligibility.

If Code & Edit entered a "X" on 1k (TY 20 and TY 21, 1c; TY19, line 22) and/or edited lines 1 through 9 of Form 1040-NR or lines line 1 through 9 of Schedule 1 (TY20, lines line 1 through 8 of Schedule 1; TY19, lines 8 through 21 of Form 1040-NR), or Error Code 215 generated on a MeF return with an amount on line 1c (TY19, line 22), then follow the steps below.

And

Then

The income is supported by Form 1042-S

The Exemption Code in box 3a is 2 or 4,

Follow the instructions at IRM 3.22.3.168.2.2 (2).

The taxpayer claims a tax treaty exemption,

Item L on Schedule OI or other statement attached to Form 1040-NR does not provide the treaty country, the tax treaty article number, and the amount exempt,

SSPND 215 for the missing information selecting paragraph J on Form 13900.

Exceptions & meaning →

Exception:¶

For tax years 2017 and prior, do not correspond for the article number if the treaty amount is the only income claimed on the return and the amount is less than the personal exemption amount ($4,050 for TY2017) Refer to Prior Year Job Aid 2515-014 exemption amounts for the tax year of the return.

The taxpayer claims a tax treaty exemption,

The treaty country is Austria and the treaty article is Article 21,

Allow the exemption.

The taxpayer claims a tax treaty exemption,

Item L or other statement includes required tax treaty information (country, article number, exempt amount),

Verify the tax treaty benefit claimed and the amount allowed with the treaty tables in Exhibit 3.22.3-1 and Exhibit 3.22.3-2. See the instruction in paragraph (f) below if both Form W-2 and Form 1042-S are attached to the return.

Exceptions & meaning →

Note:¶

Article IV "Tiebreaker" is not a valid article for claiming a tax treaty income exemption.

Tax treaty country and article are found on the treaty table,

The taxpayer claimed more than the maximum exemption amount,

Exceptions & meaning →

Caution:¶

See instruction in paragraph (f) below if both Form W-2 and Form 1042-S are attached to the return.

Enter the allowable amount in Field 03TEX

Adjust Field 03WG through Field 03ADD and Field 0401 through Field 04OTI as appropriate to include the excess amount.

Assign TPNC 494.

Tax treaty country and article are found on the treaty table,

The maximum amount for the treaty article includes footnote 25, 26, 28, or 46; And

The total compensation of this type for the tax year exceeds the maximum,

Exceptions & meaning →

Caution:¶

See instruction in paragraph (f) below if both Form W-2 and Form 1042-S are attached to the return.

Add the exemption amount claimed to the appropriate income Field 03WG through Field 03ADD and Field 0401 through Field 04OTI.

Delete the amount from Field 03TEX.

Assign TPNC 409.

Tax treaty claim is not valid,

The income is effectively connected and not reported on page 1 or Schedule 1,

Enter the amount in the appropriate income Field 03WG through Field 03ADD and Field 0401 through Field 04OTI.

Delete the amount from Field 03TEX.

Assign TPNC 409.

Tax treaty claim is not valid,

The income should be taxed as not effectively connected income,

Delete the income if present in Field 03WG through Field 03ADD and Field 0401 through Field 04OTI.

Use Exhibit 3.22.3-3 to determine the correct tax rate.

Enter the correct tax amount in Field 03TNC and appropriate field in Section 46.

If EC 334 generates assign TPNC 429.

Tax treaty claim is valid,

The exempted amount is included on lines 1 through 9 of Form 1040-NR or lines line 1 through 8 of Schedule 1 (TY19, lines 8 through 21 of Form 1040-NR)

Enter the exempt amount in Field 03TEX

Adjust Field 03WG through Field 03ADD and Field 0401 through Field 04OTI as appropriate to exclude the amount.

If EC 218 generates, assign TPNC 141

Tax treaty claim is valid,

The taxpayer erroneously reported effectively connected income on Schedule NEC,

Determine the treaty amount based on information on Schedule OI.

Enter the amount of taxable wages in Field 03WG by excluding the valid treaty amount.

Enter the valid treaty amount in Field 03TEX.

Assign TPNC 494.

If wages are exempt by tax treaty, an employer may report the taxable portion on Form W-2 and the tax exempt portion on Form 1042-S. If a Form W-2 and a Form 1042-S from the same employer are attached to the return, add the income from both forms together and then subtract the treaty exemption amount to determine if the taxpayer claimed more than the maximum amount allowed by treaty. The remainder is taxable and must be reported on line 1a (TY19, line 8).

Line 2b (TY19, Line 9a) - U.S. Bank Interest

Then

When attached documents (i.e., Form 1099, Form 1042-S, or bank statements) indicate the taxpayer has included an amount of U.S. bank interest from line 2b (TY19, line 9a) (Field 03INT), in total income,

Exceptions & meaning →

Note:¶

Do Not delete interest from other sources.

Delete the entry from Field 03INT.

Assign TPNC 403.

Line 3a and 3b (TY19, Lines 10b and 10a) - Dividends

Refer to IRM 3.12.3, Error Resolution, Individual Tax Returns, Error Code 218, for correction procedures. If corresponding because the amount in line 3a (TY19, line 10b) is larger than line 3b (TY19, line 10a) select paragraph e on Form 13900 for Letter 4087C.

Line 5b (TY19, Line 17b) - Taxable Pension and Annuities

If Code & Edit has entered an "X" on line 5b (TY19, line 17b) of Form 1040-NR for pension income supported by Form 1042-S, then follow the correction procedures in EC 311 at IRM 3.22.3.233.3.2. If EC 218 generates, assign TPNC 429.

If Code & Edit has re-computed line 23a (TY19, 54), Form 1040-NR, to exclude tax from pension income reported on Schedule NEC, and has added the taxable amount from Form 1099-R, Distribution From Retirement Plans, Insurance Contracts, etc., to line 5b (TY19, line 17b) of Form 1040-NR, then assign TPNC 463.

Line 1, Schedule 1 (TY19, Line 11, Form 1040-NR) - State/Local Income Tax Refunds

Then

Taxpayer is claiming state and local income taxes withheld (on Form W-2 or other supporting withholding statements) from the tax period of the tax return,

Delete the amount in Field 0401 and enter in Field 0701

If EC 218 generates, assign TPNC 413.

Amount is different than the state and local income taxes paid,

No action is required.

Line 8z, Schedule 1 (TY20, Line 8, Schedule 1; TY19, Line 21, Form 1040-NR) - IRC 965 Income

If Section 965/965(a) is notated on line 8z, Schedule 1 (TY20, line 8, Schedule 1; TY19, line 21, Form 1040-NR), or IRC 965 Transition Tax Statement is attached, enter F in Field 01RPC and transmit. When EC 218 redisplays, SSPND 300.

Exceptions & meaning →

J-1 Visa Exchange Visitor Program¶

Each taxpayer claiming the foreign earned income exclusion must file an individual Form 2555. If income earned by both spouses is included on one form then follow the procedures in "General Requirements for Form 2555" at IRM 3.22.3.42.1. Also refer to this section for instructions for combining forms if a taxpayer files more than one Form 2555 for self.

Foreign Earned Income Exclusion, line 45, Form 2555 should be reported on line 8d, Schedule 1 (TY20, line 8, Schedule 1, Form 1040) as a negative entry.

Exceptions & meaning →

Caution:¶

Anytime the Form 2555 exclusion is being disallowed Sections 34/35 must be deleted as appropriate.

Then

The taxpayer claims Foreign Earned Income Exclusion,

Form 2555 must be attached to allow the exclusion of foreign earned income.

Form 2555 is missing,

SSPND with Action Code 215.

The taxpayer claims an exclusion on line 45 of Form 2555,

Make sure the exclusion was transferred to Line 8d, Schedule 1, Form 1040 as a negative entry.

The taxpayer included an amount for prior year exclusion, line 45, Form 2555,

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

line 45 of Form 2555 is a negative amount,

Make sure the exclusion was transferred to Line 8d, Schedule 1, Form 1040, as a positive amount.

Delete the amount in Field 3445/3545.

If EC 156 generates enter "C" in the Clear Code field.

The taxpayer included a Housing Deduction (line 50, Form 2555) with the Foreign Earned Income Exclusion on line 8,

Delete the amount of Housing Deduction from Field 04OTI

Enter the Housing Deduction amount in Field 04ADJ.

Exceptions & meaning →

Note:¶

The taxpayer may claim a one-year carryover Housing Deduction. Allow the carryover in Field 04ADJ.

The taxpayer may notate Claiming Waiver on the tax return if they were unable to meet the time requirements due to adverse conditions in the foreign country.

If the taxpayer notates "Claiming Waiver" and explains that they expected to meet the time requirements but conditions in the foreign country prevented the normal conduct of business then ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and continue processing when the foreign country is a qualified waiver country. The only countries that qualify for a waiver for each tax year are listed in the table below.

Tax Year

Countries That Qualify for Waiver

2024

Ukraine, Iraq, Haiti, Bangladesh

2023

Belarus, Haiti, Iraq, Niger, Sudan, Ukraine

2022

Ethiopia, Iraq, Ukraine, Belarus, China, Mali

2021

Afghanistan, Burma, Chad, Ethiopia, Iraq

2020

All foreign countries

2019

Democratic Republic of Congo, Haiti, Sudan, Venezuela and People’s Republic of China (excluding Hong Kong and Macau)

2018

Democratic Republic of the Congo, Cuba, Iraq, and Nicaragua

2017

None

2016

South Sudan and Turkey

2015

Burundi

2014

Libya, Yemen

2013

Egypt, Lebanon, Pakistan, South Sudan, Yemen

2012

Central African Republic, Sudan, Tunisia

2011

Egypt, Libya, Syria, Yemen

2010

Cote D’Ivoire, Haiti

If the taxpayer notates "Claiming Waiver" for a country other than the ones listed in the table above for each tax year, and the bona fide residence test or physical presence test requirements are not met, then disallow the Form 2555 exclusion and assign TPNC 309.

Form 2555: Foreign Earned Income, line 26, Form 2555) must be included on Page 1, Form 1040.

Then

a) The taxpayer has not included his Foreign Earned Income on line 1 of Form 1040, or lines, 3, 5, and/or 6 of Schedule 1 of Form 1040,

Add the Foreign Earned Income into Field 03WG, 03TWG, 0403, 0405 and/or 0406, whichever is appropriate. If EC 218 redisplays assign TPNC 385.

Exceptions & meaning →

Caution:¶

If the taxpayer is reporting a loss on Schedule C, and included the income on Form 2555, adjust both Form 2555 and Field 04OTI.

b) If the taxpayer has excluded more than the allowable amount for the tax year, see EC 154 at IRM 3.22.3.146.3.

Adjust the exclusion in Field 04OTI and 04ADJ as necessary to reflect the correct exclusion amount

Assign TPNC 304

c) The taxpayer attempts to exclude non-earned income on Form 2555 such as interest, dividends, capital gains, pensions and annuities, rental income, or social security,

Adjust the exclusion in Field 04OTI and 04ADJ as necessary to reflect only earned income.

Adjust Fields 3445/3545 or DLSEC Sections 34 and/or 35 as appropriate.

EC 218 generates, assign TPNC 384.

d) The taxpayer made an error figuring the foreign earned income exclusion on Form 2555 by not deducting Sch C or F expenses,

Adjust the exclusion in Field 04OTI, 3445/3545 and 3450/3550 as necessary

Assign a TPNC 303.

e) The taxpayer made an error figuring the foreign earned income exclusion on Form 2555 not related to Sch C or F expenses,

Adjust the exclusion in Field 04OTI, 3445/3545 and 3450/3550 as necessary.

Assign TPNC 305.

f) The taxpayer transferred the incorrect amount of the allowable exclusion to Schedule 1, line 8,

Assign TPNC 308.

g) The taxpayer does not qualify for either Bona Fide Residence or Physical Presence,

DLSEC 34 or 35.

Delete the amount of exclusion claimed from Field 04OTI.

Assign TPNC 309.

Exceptions & meaning →

Reminder:¶

If the Form 2555 was the only International aspect of the return, SSPND 610 to renumber to domestic program.

Form 1040 with Form 2555 that includes income earned in any of the 50 United States, District of Columbia or by U.S. government employees, including military personnel is not considered foreign earned income. Take the following actions:

Then

All the income is earned in the United States or by U.S. government employees, including military personnel,

DLSEC 34/35

Delete the amount of exclusion claimed from Field 04OTI

Assign TPNC 309

Exceptions & meaning →

Reminder:¶

If Form 2555 was the only foreign aspect of the return, SSPND 610 to renumber to domestic.

Portion of the income was earned in United States or U.S. government employees, including military personnel and portion earned in foreign country,

Adjust both Form 2555 and Field 04OTI to allow only the income that was earned in a foreign country

Assign TPNC 309

Exceptions & meaning →

Reminder:¶

The taxpayer must meet either bona fide residence or physical presence test or the Form 2555 is invalid.

U.S. citizens living and working in the U.S. territories listed below are treated as if they are earning income in the United States for tax purposes and are not permitted to claim a foreign earned income exclusion:

Exceptions & meaning →

Note:¶

The earned income is determined by the employer's foreign address per line 1 of the Form 2555.

List of U.S. Territories not allowed to claim Foreign Earned Income Exclusion

American Samoa

Antarctica

Baker Island

Commonwealth of the Northern Mariana Islands

Guam

Howland Island

Johnston Island Atoll

Kingsman Reef

Midway Islands

Palmyra

Puerto Rico

United States Virgin Islands

Wake Island

Follow the instructions below:

Then

The taxpayer excludes earned income using Form 2555,

Adjust Field 04OTI and Field 04ADJ, to exclude the foreign earned income exclusion amount.

Make sure the taxpayer has included the earned income on the applicable income lines of Form 1040 and Schedule 1.

DLSEC 34 or 35.

Assign TPNC 310.

Exceptions & meaning →

Caution:¶

Federated States of Micronesia, Marshall Islands, and Palau are treated as foreign countries for tax purposes and are eligible for the foreign earned income exclusion. These returns must be processed as FLC 20.

Form 2555 - Taxpayer living and working in a restricted country cannot claim the benefits under IRC 911:

Restricted Country

Beginning Date

End Date

Cuba

Exceptions & meaning →

Note:¶

United States Naval Base at Guantanamo Bay is not located within a restricted country for purposes of the limitation set forth in section 911(d)(8)(A).

January 1, 1987

still in effect

If the address on the Form 2555 is a restricted country, follow the chart below:

Then

The taxpayer is excluding earned income Cuba,

Adjust Line 8d, Schedule 1, Form 1040 by deleting the foreign earned income exclusion amount

Make sure the taxpayer included the earned income on the applicable income lines of Form 1040 and Schedule 1

DLSEC 34 or 35

Assign TPNC 314.

Exceptions & meaning →

IRC 931, IRC 933, or Form 4563¶

If the taxpayer is excluding income under IRC 931,IRC 933, or using Form 4563, make sure the income is reported and the exclusion is reported in Field 04OTI as a negative amount.

Exceptions & meaning →

Caution:¶

If the taxpayer is excluding Schedule D income from Form 1040 and EC 265 sets manually compute and verify tax without the Schedule D income.

If the taxpayer is excluding income received from a Form W-2 which shows state or local income taxes, this income cannot be excluded. Follow the instructions below:

Adjust Field 03WG, Field 04OTI and Field 03TOT accordingly, and

Assign TPNC 347

If the taxpayer received income from services performed as an employee of the United States government or any of its agencies, the income cannot be excluded from the United States tax return. Follow the instructions below:

Exceptions & meaning →

Exception:¶

If the United States government wages are reported on both the United States and AS tax returns, Form 1116 can be attached to the United States tax return to claim credit for the taxes paid to U.S. territory.

Adjust Field 04OTI to delete exempt income,

Make sure the income is reported in the appropriate income field(s) of Form 1040 and Schedule 1, and

Assign TPNC 437.

Exceptions & meaning →

Tax Treaty Claimed on Form 1040¶

Valid tax treaty income exemptions for teaching, studying, or training may be claimed on Form 1040 by the primary and/or the secondary taxpayer on the return.

The taxpayer must provide this information on the return or attachments to support the claim: the treaty country, the treaty article number, and the exempt amount. Correspond for any missing information selecting paragraph J on Form 13900

Verify the treaty claim using the treaty table at Exhibit 3.22.3-1, Tax Treaty Table 2. Compensation for Personal Services. If the taxpayer provides a treaty article number, but doesn’t cite the subparagraphs, accept the treaty article without the subparagraphs if the country and amount are valid for that article number on the treaty tables.

If the tax treaty claimed is valid, make sure the income is reported in Field 03WG, and the exempt income amount is included in Field 04OTI as a negative amount.

If the taxpayer has wage income and claims a deduction as a negative amount on line 8 for contributions made to a Canadian Retirement or Pension Plan (e.g., "RPP" , "RRSPS" , Canada Article XVIII(8) through (13) on Form 8833), allow the deduction.

If the tax treaty claimed is invalid, make sure the income is reported in Field 03WG. Adjust Field 04OTI to delete the invalid tax treaty income and assign TPNC 409.

If Article 19 of the U.S. - China Tax Treaty is claimed and it can be determined that the taxpayer has claimed the tax treaty for more than 3 years, make sure the income is reported, adjust Field 04OTI to delete the invalid tax treaty income and assign TPNC 337.

If the Article 20c, of the U.S.- China Tax Treaty is claimed and the taxpayer claims more than $5,000 make sure all of the income is reported in Field 03WG, and adjust Field 04OTI to allow whichever is less: the maximum $5,000 or the maximum income up to the $5,000 limit. Assign TPNC 494.

If the taxpayer claimed a tax treaty amount for more than they earned, make sure the income is reported, adjust Field 04OTI to allow whichever is less: the maximum treaty exclusion or maximum earned income.

If the taxpayer claimed a tax treaty amount for income not related to teaching, studying, or training, make sure the income is reported, adjust Field 04OTI and assign 337

Exceptions & meaning →

Correction Procedures for EC 218 for Dual-status Returns¶

A taxpayer who is a resident alien and a nonresident alien of the United States within the same tax year files a dual-status tax return. This condition usually occurs in the year of arrival or departure from the United States. The taxpayer will file Form 1040 or Form 1040-NR for the tax year based on the taxpayer's residence status on the last day of the year.

The taxpayer will file a return on Form 1040 if a resident of the United States on the last day of the tax year.

The taxpayer will file a return on Form 1040-NR if NOT a resident of the United States on the last day of the tax year.

If the requirements are met, a dual-status alien may elect to be treated as a resident for the entire year.

Follow the intent of the taxpayer and process the tax form that is identified as "Dual-Status Return" , if there is an indication they entered or left the United States in December. See question G Schedule OI, Form 1040-NR.

Process a Form 1040-NR as dual-status if the taxpayer identifies the return as a "Dual-Status Return" and attaches a Form 8854, Initial and Annual Expatriation Statement.

If unable to determine which return to process from Schedule OI of Form 1040-NR, or an attached statement elsewhere on the return, process the tax form that is identified by the taxpayer as the "Dual-Status Return" .

If unable to determine which tax form should be processed as the return following (a) through (f) above, correspond for dual-status dates using paragraph W of Form 13900 for Letter 4087C.

Renumbering of Tax Returns - Follow chart below:

Then

The "controlling return" (the return to be processed) is a Form 1040, but the Form 1040-NR"statement" was originally numbered as the controlling return,

SSPND 610 to renumber to 1040 program.

The "controlling return" is Form 1040-NR, but the Form 1040"statement" was originally numbered as the controlling return,

SSPND 610 to renumber to the 1040-NR program.

The taxpayer indicates dual-status but did "NOT" include both a "controlling return" and a "statement" and Code & Edit did NOT correspond for it,

Research ERINV for the presence of the missing return

If found, SSPND 410 to work leader for association with the other return

Research IMFOLT to see if the other return has already posted as a TC 150. If so, process the return as is (do not renumber), using No Reply instructions for any missing information.

If missing return is not found, and has not posted, correspond selecting paragraph number V of Form 13900.

If the taxpayer checks and uses joint tax rates, has two names in the caption, claims an exemption for self and spouse and the return has two signatures AND the taxpayer specifically states that they are making an election to be taxed as resident aliens for the entire tax year, allow the election to use MFJ rates. Do not use dual-status processing instructions. Follow the instructions under Form 1040 processing.

Exceptions & meaning →

Note:¶

Refer to Filing Status instructions at IRM 3.22.3.15.12.

Tax Treaties - In general, dual-status taxpayers are entitled to tax treaty benefits only on income received during the period of U.S. nonresidence. Treaty income must be reported and the treaty exclusion must be explained on the Form 1040-NR.

And

Then

The taxpayer is excluding income based on a tax treaty on his/her Form 1040-NR,

Verify the tax treaty - Income for personal service. See Exhibit 3.22.3-1 and Exhibit 3.22.3-2

Verify the tax treaty - Income from other than personal service. See Exhibit 3.22.3-3

Taxpayer is excluding income based on a tax treaty

Taxpayer did not provide the treaty country, the tax treaty article number, and the amount exempt

SSPND 215 for the missing information selecting paragraph J on Form 13900

Form 1040 is the controlling return,

Tax treaty claim is valid

Do not include the excluded income on the return.

Form 1040 is the controlling return,

Tax treaty claim is invalid

Make sure the income is reported in the appropriate income fields

Assign TPNC 409.

Form 1040-NR is the controlling return,

Tax treaty claim is valid

Enter the tax treaty exclusion amount in Field 03TEX and delete the income if reported.

Form 1040-NR is the controlling return,

Tax treaty claim is invalid

Delete the amount from Field 03TEX.

Make sure the income is reported in the appropriate Field(s) 03WG - 04OTI.

Assign TPNC 409.

Combine the amounts reported on the statement return with the amounts reported on the controlling return and enter the combined amounts in the related fields for each section of the return. If income is reported on the Form 1040 and there is no corresponding line on the Form 1040-NR add the income to field 04OTI when combining the statement to the controlling return. If the taxpayer did NOT combine, or makes an error in combining the return and the statement, assign TPNC 325.

Exceptions & meaning →

Note:¶

If the controlling return and the statement return have identical entries do not combine tax returns.

Dual-status taxpayers are allowed to claim the Foreign Earned Income Exclusion, Housing Deduction, and Housing Exclusion on the Form 1040 portion of their income by using a valid Form 2555. Income earned during the Form 1040-NR period may not be excluded with Form 2555. Caution must be used when working dual-status returns when the Form 1040-NR is the controlling document as there is no designated line on this form for claiming the exclusion, and the Form 2555 can’t be transcribed. Manually verify taxpayer's entries and use ERS Input Only Fields as necessary to allow the exclusion when valid. See IRM 3.22.3.168.2.3.1 and IRM 3.22.3.42.

Then

The taxpayer is excluding foreign income earned during the Form 1040-NR period with Form 2555,

Delete the Form 2555 entry in Field 04OTI and Field 04ADJ if present.

Make sure the income amount has been included in Section 03 and Section 04.

Assign TPNC 387.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 218¶

The following Taxpayer Notice Codes are used for EC 218.

TPNC

Literal

Any previously assigned TPNC

100

113

Welfare payments, Workmen's Compensation, etc., aren't taxable.

114

You didn't include all the income shown on your Form(s) W-2, Form W-2G, etc., in the income section.

115

We adjusted total income to include tips from Form 4137.

116

Computed or transferred total taxable interest amount incorrectly.

117

Disallowed excludable savings bond interest because FSC 3.

119

Computed or transferred total taxable dividend income incorrectly.

120

You can't subtract State income tax payments from the income reported on Form 1040. (Form 1040)

121

Computed or transferred Schedule C incorrectly.

122

Computed or transferred Schedule D incorrectly.

123

Transferred capital gain or loss from Form 4797 incorrectly.

125

We didn’t allow the amount claimed as a repayment of unemployment compensation for a prior year on your tax return. This amount is subject to a 2 percent limitation. This amount should be claimed as other expenses on Schedule A, Itemized Deductions. We have adjusted your return accordingly.

126

Computed or transferred Schedule E incorrectly.

127

Computed or transferred Schedule F incorrectly.

129

You can't claim negative unemployment compensation.

131

Computed taxable social security benefits incorrectly.

132

You must deduct any repayment over the amount of Social Security Benefits received in the tax year on Schedule A.

134

Disallowed child's income from Form 8814 because income greater than the maximum allowed for the tax year.

136

We changed the amount of other gains or losses on your tax return to include your overall business loss from your Form 4684, Casualties and Thefts. If you are not required to file Form 4797, Sales of Business Property, casualty or theft losses of business property must be included with income reported on your tax return.

138

Adjusted total income to include employer-provided benefits in excess of child care expenses.

141

Computed total income incorrectly.

165

Disallowed combat pay excluded from income not identified as combat pay on your Form W-2.

170

We changed the amount claimed as ordinary dividends on your tax return. The amount of qualified dividends cannot exceed the amount of ordinary dividends

216

Computed or transferred Form 8814 incorrectly.

218

We computed your tax for you.

501

We changed the amount reported as adjusted gross income on your tax return because you either didn’t complete Schedule 1, Additional Income and Adjustments to Income, or didn’t attach it to your tax return.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

588

The first $2,400 of unemployment compensation paid to a person is not taxable. We reduced the unemployment compensation you, or if you filed a joint return, your spouse reported on your tax return accordingly. (TY 2009 only)

759

We adjusted your tax return because you reported income or withholding from different tax years on your return. We processed your tax return with only the income earned and the tax withheld in the year of the tax return.

TPNC

Literal (International 1040 with Form 2555 and Form 1040-NR)

300

Form 2555 was incomplete or not attached.

303

You figured your foreign earned income exclusion, housing exclusion, or housing deduction incorrectly on Form 2555. Our records indicate that you incorrectly computed your net foreign earned income. We have changed your tax return accordingly

304

Disallowed foreign earned income exclusion that was greater than maximum allowed for that tax year.

305

Computed Form 2555/Form 2555-EZ incorrectly.

308

Transferred foreign earned income exclusion, housing exclusion, or housing deduction incorrectly from Form 2555/Form 2555-EZ to your Form 1040.

309

Disallowed foreign Earned Income Exclusion, Form 2555/Form 2555-EZ because you did not live in a foreign country or because you did not meet the Tax Home Test for either the Bona Fide residence or the Physical Presence Test.

310

Disallowed foreign earned income exclusion because you are a resident of a U.S. Territory.

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

312

Disallowed part or all foreign tax credit. Foreign tax credit cannot be figured on income that is excluded on Form 2555/Form 2555-EZ.

314

We have disallowed your foreign earned income exclusion, housing exclusion, and/or housing deduction claimed on your tax return. Travel to Cuba is restricted.

325

You did not combine the income from your 'Dual-Status Statement' to your dual-status return correctly. We have adjusted your return accordingly.

328

We didn’t receive your answer to our request for the dates you were in the U.S. Therefore, we changed your dual status return using only Form 1040-NR. We have changed your tax return accordingly.

384

You may not exclude unearned income on Form 2555/Form 2555-EZ. You may be able to reduce your tax by filing an Amended Tax Return with Form 1116.

385

We changed the total income on Page 1 of your tax return to include the taxable amount of your foreign earned income.

386

We did not allow your Form 2555/Form 2555-EZ, Foreign Earned Income because you filed a Form 1040-NR tax return.

387

We did not allow your Form 2555 or Form 2555-EZ Foreign Earned Income Exclusion because you filed a dual-status tax return and are claiming an exclusion of income associated with the Form 1040-NR portion of your return. Only the income associated with the Form 1040 portion of income may be excluded. We have adjusted your return accordingly.

403

U.S. bank interest income is not taxable. We have adjusted your return accordingly.

404

We refigured your income to include capital gains from Form 8288-A.

406

Disallowed treaty exemption claim because you didn’t reply with more information.

409

Disallowed invalid treaty exemption claim.

413

State income tax payments must be claimed as an itemized deduction on l Schedule A, Itemized Deductions. These payments can’t be subtracted from total income on the tax return. If you filed a Schedule A, we changed it to include the state income tax payments. If you didn’t file a Schedule A, we allowed it as your total itemized deduction on Schedule A because it lowered your taxable income. (Form 1040-NR)

429

You figured your tax incorrectly on Form 1040-NR, page 2, using the tax tables. We refigured your tax using the 30% (or lower treaty) rate from Schedule NEC of Form 1040-NR. We have changed your tax return accordingly.

437

We didn't allow you to exempt the income you received from services performed as an employee of the United States government or one of its agencies. This income is taxable. We have adjusted your return accordingly.

447

Your tax rate for gambling winnings paid to nonresident aliens is 30 percent.

448

Gambling winnings are exempt from tax due to a U.S. tax treaty.

463

You figured your tax incorrectly using the 30 percent (or lower treaty) rate from Form 1040-NR, Schedule NEC. We refigured your tax on page 2, Form 1040-NR, using the tax tables. We have changed your tax return accordingly.

494

We disallowed part of the tax treaty exemption on your return because you claimed more than the maximum amount.

Exceptions & meaning →

Note:¶

The above literals are abbreviated. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, for complete literal for Domestic TPNCs, see Exhibit 3.22.3-9 for complete literal for International TPNCs.

Exceptions & meaning →

Error Code 220/520 - Educator Expense¶

EC 220 generates when Total Adjustments and Total Adjustments Computer are not equal and Educator Expense amount is not equal to Educator Expense amount computer

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 220, for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 220¶

The following fields are displayed for EC 220

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

04EDU

Educator Expenses Deduction

Educator Expenses Deduction Computer

03TAJ

Total Adjustments

Total Adjustments Computer

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

Exceptions & meaning →

Note:¶

The fields displayed for EC 520 will include a Clear Code field and Field 02NC> and all other fields will be the same as EC 220.

Exceptions & meaning →

Error Code 222/522 - IRA Payments¶

EC 222 generates when Total Adjustments and Total Adjustments Computer are not equal and IRA Payments Amounts is not equal to IRA Payment Amount Computer. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 222, for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 222¶

The following fields are displayed for EC 222.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01SPC

Special Processing Code

03TOT

Total Income

Total Income Computer

04EDU

Educator Expenses

Educator Expenses Computer

04CBE

Reservist and Other Business Expenses Amount

04HSA

Health Savings Account Deduction

Health Savings Account Deduction Computer

04MOV

Moving Expense

04DSE

Deduction for SE Tax

Deduction for SE Tax Computer

04SEP

SE Retirement Plans Deduction

04HID

SE Health Insurance Deduction

04PEW

Early Withdrawal Penalty

04IRA

IRA Deduction

IRA Deduction Computer

94IRV

IRA Deduction Verified (ERS only)

04MSA

Archer MSA Deduction

Archer MSA Deduction Computer

04ADJ

Other Adjustments

03TAJ

Total Adjustments

Total Adjustments Computer

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

Non Itemized Charitable Contribution Deduction Computer

Exceptions & meaning →

Note:¶

The fields displayed for EC 522 will include a Clear Code field and Field 02NC> and all other fields will be the same as EC 222.

In addition to the TPNCs listed in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, the following TPNC is valid for this Error Code:

311 - We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

Exceptions & meaning →

Error Code 224/524 - Student Loan Interest Deduction¶

EC 224 generates when total adjustments and total adjustments computer are not equal and Student Loan Interest Deduction amount is not equal to Student Loan Interest Deduction amount computer.

Refer to EC 224 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 224, for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Note:¶

When Form 2555 is attached, Sections 34/35 must be checked for transcription errors at Fields 3445/3545 and 3450/3550. When Form 2555-EZ is attached, the line 18 amount must be entered in Fields 3445/3545.

Exceptions & meaning →

Fields Displayed - EC 224¶

The following fields are displayed for EC 224.

Form 1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01RPC

Return Processing Code

03DSI

Dependent Status Indicator

01EXC

Exemption Code

94EXV

Exemption Code Verified

Scholarship and Fellowship Grants

03TOT

Total Income

Total Income Computer

04EDU

Educator Expenses

Educator Expenses Computer

04CBE

Reservist and Other Business Expenses Amount

04HSA

Health Savings Account Deduction

Health Savings Account Deduction Computer

04MOV

Moving Expenses

04DSE

Deduction for SE Tax

Deduction for SE Tax Computer

04SEP

SE Retirement Plans Deductions

04HID

SE Health Insurance Deduction

04PEW

Penalty on Early Withdrawal

04IRA

IRA Deduction

IRA Deduction Computer

04SLI

Student Loan Interest Deduction

Student Loan Interest Deduction Computer

94SLV

Student Loan Interest Deduction Verified (ERS only)

04MSA

Archer Medical Savings Account

Archer Medical Savings Account Computer

04ADJ

Other Adjustments

03TAJ

Total Adjustments

Total Adjustments Computer

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

In addition to the TPNCs listed in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, the following TPNCs are valid for this Error Code:

311 -We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

Exceptions & meaning →

Note:¶

The fields displayed for EC 524 will include a Clear Code field and Field 02NC> and all other fields will be the same as EC 224.

Exceptions & meaning →

Error Code 226/526 - Health Savings Account¶

EC 226 generates when total adjustments and total adjustments computer are not equal and Health Savings Account (HSA) amount is not equal to Health Savings Deduction amount computer.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 226, for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 226¶

The following fields are displayed for EC 226

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

04HSA

Health Savings Account

Health Saving Account Computer

S52NP

Section 52 Not Present

5201

High Deductible Plan Indicator

5202

HSA Contributions

5203

HSA Annual Deductible

5204

Total Archer MSA Contributions

5205

Limited HSA Contributions

5206

One-Half Adjusted HSA Deductible

5207

Additional HSA Contributions

5208

Total HSA Contributions High Deductible Coverage

5209

Employer HSA Distributions

5210

Qualified HSA Funding Distributions Amount

5211

Total Contributions Funding Distributions Amount

5212

HSA Contributions Limit Amount

5213

Form 8889 HSA Deduction Amount

52HSV

Health Savings Account Deduction Verified Amount

5214A

Total HSA Distributions Amount

5214B

HSA Distributions Rollover Amount

5214C

Net HSA Distributions Amount

5215

Unreimbursed Qualified Medical Expenses Amount

5216

Taxable HSA Distribution Amount

5217A

Additional 10 percent Tax Exception Indicator

5217B

Additional 10 percent Distribution Tax Amount

5218

HDHP Failure Part Year Coverage Amount

5219

HDHP Failure Funding Distribution Amount Funding

5220

HDHP Failure Total Income Amount

5221

HDHP Failure Additional Tax Amount

Form 8889 Additional Tax Section 52 Computer

Exceptions & meaning →

Error Code 227/527 - MSA Deduction¶

EC 227 generates when total adjustments and total adjustments computer are not equal and Medical Savings Account (MSA) Deduction amount is not equal to MSA Deduction amount computer.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 227, for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 227¶

The following fields are displayed for EC 227.

1040-NR

Field Title

01TXP

Tax Period

01FSC

Filing Status Code

04MSA

Archer MSA Deductions

Archer MSA Deductions Computer

3901

Form 8853 Archer Total Employer MSA Contributions Amount

3902

Total Form 8853 Archer MSA Contribution Amount

3903

Form 8853 Archer MSA Limitation Amount

3904

Form 8853 MSA High Deductible Compensation Amount

S39NP

Section 39 Not Present

In addition to the TPNCs listed in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, the following TPNC is valid for this Error Code:

311- We transferred the information from the tax form you filed and processed it as a Form 1040-NR

Exceptions & meaning →

Note:¶

The fields displayed for EC 527 will include a Clear Code field and 02NC> and all other fields will be the same as EC 227.

Exceptions & meaning →

Error Code 229/529 - Total Adjustments Difference¶

EC 229 generates when Total Adjustments and Total Adjustments Computer are not equal.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 229, for invalid conditions and refer to both IRM 3.12.3 and IRM 3.22.3.174.2.1 for correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 229¶

The following fields are displayed for EC 229.

1040-NR

Field Title

01SPC

Special Processing Code

01FPC

Form Processing Code

04EDU

Educator Expenses

Educator Expenses Computer

04CBE

Reservist and Other Business Expenses Amount

04HSA

Health Savings Account Deduction

Health Savings Account Deduction Computer

04MOV

Moving Expenses

04DSE

Deduction for Self-Employment Tax

Deduction for Self-Employment Tax Computer

04SEP

SE Retirement Plans Deductions

04HID

SE Health Insurance Deduction

04PEW

Early Withdrawal Penalty

04IRA

IRA Deduction

IRA Deduction Computer

04SLI

Student Loan Interest Deduction

Student Loan Interest Deduction Computer

04MSA

Archer MSA

Archer MSA Deduction Computer

04ADJ

Other Adjustments

03TAJ

Total Adjustments

Total Adjustments Computer

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

03NCC

Non Itemized Charitable Contribution Deduction

Non Itemized Charitable Contribution Deduction Computer

Exceptions & meaning →

Note:¶

The fields displayed for EC 529 will include a Clear Code field and 02NC> and all other fields will be the same as EC 229.

Exceptions & meaning →

If the taxpayer is using line 10c (TY19, line 31) to exempt income based on a tax treaty then treat the amount as a misplaced entry and follow the instructions for line 1b (TY19, line 12) and line 9, Schedule 1 (TY20, line 8, Schedule 1 (TY19, line 22, Form 1040-NR) at IRM 3.22.3.168.2.2, Correction Procedures for EC 218 Form 1040-NR.

For TY 21 and prior If an amount is on line 10c (TY19, line 31) for Scholarship and Fellowship Grants Excluded follow the instructions in the chart below:

Then

An amount is present on both line 1b and line 10c (TY19, lines 12 and 31), Form 1040-NR and a Form 1042-S with Income Code 16 or statement from the educational institution (on the college or university letterhead) is not attached.

Exceptions & meaning →

Note:¶

The statement must show the amount of grant, grantor’s name, dates covered and expenses incurred. This information may be on Form 1098-T.

SSPND 215 and correspond selecting paragraph letter I (eye) on Form 13900.

There is no amount present on line 1b (TY19, line 12), Form 1040-NR and a Statement (Form 1042-S or other Payer Statement) is attached,

Enter the gross amount of the Scholarship or Fellowship Grant income in Field 04SFG.

The taxpayer is excluding income from a Form W-2 issued by a college or university and no statement is present from the college or university (on school letterhead) that shows the amount of grant, grantor’s name, dates covered and expenses incurred,

SSPND 215 and correspond for the statement selecting paragraph letter I (eye) on Form 13900.

Exceptions & meaning →

Exception:¶

When it can be determined that the taxpayer's income is from an occupation other than student (e.g., Form W-2 issued from other than an educational institution, occupation area of the return indicates intern, technical supporter, doctor) do not correspond.

The taxpayer is excluding income on line 10c (TY19, line 31) that is not scholarship and fellowship grant income,

Assign TPNC 416.

Scholarship/fellowship grant income is included on line 1a (TY19, line 8),

Adjust Field 03WG to exclude the scholarship/fellowship grant income.

Enter the scholarship/fellowship grant amount in Field 04SFG.

The amount on line 10c (TY19, line 31), Form 1040-NR, exceeds the amount on Form 1042-S Box 5 (withholding allowance) and/or statement of school related expenses (e.g. tuition, books, supplies),

Assign TPNC 416.

The amount on line 10c (TY19, line 31), Form 1040-NR, exceeds the amount on line 1b (TY19, line 12), Form 1040-NR.

Assign TPNC 416.

If the taxpayer is filing a Form 1040-NR and is attempting to claim a credit from Form 8917, Tuition and Fees Deduction, assign TPNC 400.

If the taxpayer is claiming a self-employment (SE) tax deduction anywhere in the "adjustment to income area" (lines 11 - 26, Schedule 1), enter the amount in Field 04DSE.

If the taxpayer is paying SE Tax and did not take the SE Tax Deduction, enter it in Field 04DSE and assign TPNC 158.

TY18 and prior, If Domestic Production Activities Deduction is reported in adjustments to income area, enter the amount in field 04ADJ. If EC 228 generates, follow the correction procedures in IRM 3.22.3 and IRM 3.12.3

If the taxpayer has entered an amount on line 19a, Schedule 1 (TY20, line 18a) or a write-in on TY19, line 34, Form 1040-NR for Alimony Paid, assign TPNC 801.

Exceptions & meaning →

Correction Procedures EC 229 - Dual-Status Form 1040-NR¶

If the taxpayer has entered an amount on line 19a, Schedule 1 (TY20, line 18a) or a write-in on TY19, line 34 of a dual-status Form 1040-NR for Alimony Paid, take the following action:

Then

The Alimony Paid amount is claimed as an adjustment on Schedule 1, line 19a (TY20, Schedule 1, line 18a) of the Form 1040 statement and transferred to Form 1040-NR,

Enter the amount in Field 04ADJ.

Exceptions & meaning →

Note:¶

If an Alimony TIN is not found on the Form 1040 statement or attachments, then research for the TIN on a prior year return using CC RTVUE/TRDBV. If not found then follow the instructions in IRM 3.12.3, EC 229, Field 0418A, Alimony Paid.

If the Alimony Paid amount is not claimed as an adjustment to income on the Form 1040 statement,

Assign TPNC 801.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 229¶

The following Taxpayer Notice Codes are used for EC 229.

TPNC

Literal

Any previously assigned TPNC

100

147

You or your spouse claimed more than the amount allowed for your IRA Deduction.

149

You aren't allowed to claim an IRA deduction unless your participation in the KEOGH, SIMPLE, or Simplified Employee Pension Plan (SEP) was considered inactive.

151

You claimed more than the amount allowed for your student loan interest deduction (limited to zero if married filing separately or maximum AGI).

158

We changed the deductible part of self-employment tax on your tax return.

161

Disallowed adjustment for deferred savings plan. Your Form W-2 wages already reflected this adjustment.

164

We didn’t allow the amount claimed as alimony paid on your tax return because the alimony was paid to the spouse that was claimed as an exemption on your tax return.

166

You should claim Employee Business on Schedule A.

167

Disallowed qualified performing artists (QPA) expenses.

169

Disallowed jury pay.

171

We didn’t allow the amount claimed as Health Savings Account Deduction on your tax return because Form 8889 was incomplete or not attached.

174

You computed your total adjustments on your tax return incorrectly.

175

We found an error in the computation of your adjusted gross income on your tax return. (Form 1040)

218

We computed your tax for you.

551

No reply Form 3903/3903F

553

No Reply, Form 2106.

557

We didn’t allow the deduction amount for domestic production activities on your tax return because Form 8903, Domestic Production Activities Deduction, was not attached to your tax return.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

TPNC

Literal

300

Form 2555 was incomplete or not attached.

303

304

You can't exclude more than the allowable amount of foreign earned income on Form 2555.

305

You figured the amount on Form 2555 incorrectly.

308

Transferred foreign earned income exclusion, housing exclusion, or housing deduction incorrectly from Form 2555 to your Form 1040.

309

Disallowed foreign earned income exclusion, Form 2555 because you did not live in a foreign country or because you did not meet the Tax Home Test for either the Bona Fide residence or the Physical Presence Test.

310

Disallowed foreign earned income exclusion because you are a resident of a United States Territory.

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

314

We have disallowed your foreign earned income exclusion, housing exclusion, and/or housing deduction claimed on your tax return. Travel to Cuba is restricted.

315

We cannot allow a deduction for a U.S. government Cost of living allowance. We have adjusted your tax return accordingly.

325

You did not combine the income from your 'Dual-Status Statement' to your dual-status return correctly.

328

We didn’t receive your answer to our request for the dates you were in the U.S. Therefore, we changed your dual status return using only Form 1040-NR. We have changed your tax return accordingly.

400

As a nonresident Alien, you are not allowed to take an adjustment to income for Tuition and Fees on Form 1040-NR.

406

Disallowed treaty exemption claim because you didn’t reply with more information.

409

Disallowed invalid tax treaty claim.

415

Disallowed scholarship or fellowship exclusion required supporting statement was not attached.

416

The amount of scholarship or fellowship exclusion cannot exceed the amount of scholarship or fellowship received.

447

Your tax rate for gambling winnings paid to nonresident aliens is 30 percent.

448

Gambling winnings are exempt from tax due to a U.S. tax treaty.

494

We disallowed part of the tax treaty exemption on your return because you claimed more than the maximum amount.

501

Exceptions & meaning →

Note:¶

The above literals are abbreviated. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, Taxpayer Notice Codes, for complete literal for Domestic TPNCs and Exhibit 3.22.3-9 for complete literal for International TPNCs.

Exceptions & meaning →

Error Code 230/530 - Adjusted Gross Income¶

EC 230 generates when Adjusted Gross income is not equal to adjusted gross income computer.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 230, for invalid conditions and refer to both IRM 3.12.3 and IRM 3.22.3 for correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 230¶

The following fields are displayed for EC 230.

1040-NR

Field Title

01RPC

Return Processing Code

04OTI

Other Income

03TEX

Treaty Exempt Income

03TOT

Total Income

Total Income Computer

04EDU

Educator Expenses

Educator Expenses Computer

04CBE

Reservist and Other Business Expenses Amount

04HSA

Health Savings Account Deduction

Health Savings Account Deduction Computer

04MOV

Moving Expenses

04DSE

Deduction for SE Tax

Deduction for SE Tax Computer

04SEP

SE Retirement Plans Deductions

04HID

SE Health Insurance Deduction

04PEW

Early Withdrawal Penalty

04IRA

IRA Deduction

IRA Deduction Computer

04SLI

Student Loan Interest Deduction

Student Loan Interest Deduction Computer

04MSA

Archer MSA Deduction

Archer MSA Deduction Computer

04ADJ

Other Adjustments

03TAJ

Total Adjustments

Total Adjustments Computer

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

Exceptions & meaning →

Note:¶

TPNC

Literal

Any previously assigned TPNC

100

147

You or your spouse claimed more than the amount allowed for your IRA deduction.

158

161

Disallowed adjustment for deferred savings plan. Your Form W-2 wages already reflected the adjustment.

171

We didn’t allow the amount claimed as Health Savings Account Deduction on your tax return because Form 8889 was incomplete or not attached to your tax return. (Form 1040)

172

We didn’t allow the amount claimed as Archer MSA on your return because Form 8853 was incomplete or not attached to your tax return. Form 1040

174

You computed your total adjustments on your tax return incorrectly.

175

We found an error in the computation of your adjusted gross income on your tax return. (Form 1040)

218

We computed your tax for you.

501

551

No reply Form 3903 or Form 3903F.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

TPNC

Literal

300

Form 2555/Form 2555-EZ was incomplete or not attached.

303

304

You can't exclude more than the allowable amount of foreign earned income on Form 2555/Form 2555-EZ.

305

You figured the amount on Form 2555/Form 2555-EZ incorrectly.

308

Transferred foreign earned income exclusion, housing exclusion, or housing deduction incorrectly from Form 2555/Form 2555-EZ to your Form 1040.

309

Disallowed foreign earned income exclusion, Form 2555/Form 2555-EZ because you did not live in a foreign country or because you did not meet the Tax Home Test for either the Bona Fide residence or the Physical Presence Test.

310

Disallowed foreign earned income exclusion because you are a resident of a United States Territory.

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

312

Disallowed part or all foreign tax credit. Foreign tax credit cannot be figured on income excluded on Form 2555/Form 2555-EZ.

314

We have disallowed your foreign earned income exclusion, housing exclusion, and/or housing deduction claimed on your tax return. Travel to Cuba is restricted.

315

We cannot allow a deduction for a U.S. government Cost of living allowance. We have adjusted your tax return accordingly.

325

You did not combine the income from your 'Dual-Status Statement' to your dual-status return correctly.

328

We didn’t receive your answer to our request for the dates you were in the U.S. Therefore, we changed your dual status return using only Form 1040-NR. We have changed your tax return accordingly.

400

As a nonresident Alien, you are not allowed to take an adjustment to income for Tuition and Fees on Form 1040-NR.

406

Disallowed treaty exemption claim because you didn’t reply with more information.

409

Disallowed invalid tax treaty claim.

415

Disallowed scholarship or fellowship exclusion required supporting statement was not attached.

416

The amount of scholarship or fellowship exclusion cannot exceed the amount of scholarship or fellowship received.

447

Your tax rate for gambling winnings paid to nonresident aliens is 30 percent.

448

Gambling winnings are exempt from tax due to a U.S. tax treaty.

494

We disallowed part of the tax treaty exemption on your return because you claimed more than the maximum amount.

Exceptions & meaning →

Note:¶

The above literals are abbreviated. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, Taxpayer Notice Codes for complete literal for Domestic TPNCs, See Exhibit 3.22.3-9 for complete literal for International TPNCs.

Exceptions & meaning →

Error Code 231 - Form 8962 Discrepancy¶

EC 231 will generate when Form 8962, Premium Tax Credit (PTC), is present and Modified Adjusted Gross Income (MAGI) and dependent’s MAGI doesn’t equal the AVS Household Income Computer Amount. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, Error Code 231, for screen display, invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 231¶

The following fields are displayed for EC 231.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01RPC

Return Processing Code

1CCC

Computer Condition Code

03TEI

Tax-Exempt Interest

0403

Combined Schedule C Profit/Loss

Combined Schedule C Profit/Loss Computer

03CGL

Schedule D Profit/Loss

Schedule D Profit/Loss Computer

0405

Schedule E Profit/Loss

Schedule E Profit/Loss Computer

0406

Combined Schedule F Profit/Loss

Combined Schedule F Profit/Loss Computer

0407

Taxable Unemployment Compensation

04OTI

Other Income Amount

03ADD

Additional Income Amount

Additional Income Amount Computer

03TOT

Total Income

Total Income Computer

04EDU

Educator Expense Amount

Educator Expense Amount Computer

04HSA

Combined Health Savings Account Deduction

Combined Health Savings Account Deduction Computer

04DSE

Deduction for SE Tax

Deduction for SE Tax Computer

04IRA

IRA Deduction

IRA Deduction Computer

04SLI

Student Loan Interest Deduction

Student Loan Interest Deduction Computer

04MSA

Archer MSA Deduction

Archer MSA Deduction Computer

04ADJ

Other Adjustments

03TAJ

Total Adjustments

Total Adjustments Computer

03AGI

Adjusted Gross Income

AGI Computer

7302A>

AVS PTC MAGI Computer

7302B

Dependents MAGI

7303>

AVS Household Income Computer

7308B

Monthly Contribution Health Care

7308B>

AVS Monthly Contribution Computer

0521A

Excess APTC Repayment

0521A>

AVS APTC Repayment Computer

Exceptions & meaning →

Allowable Taxpayer Notice Codes EC 231¶

The following Taxpayer Notice Codes are used for EC 231.

TPNC

Literal

Any previously assigned TPNC

100

113

Welfare payments, Workmen's Compensation, etc., aren't taxable.

114

You didn't include all the income shown on your Form(s) W-2, Form W-2G, etc., in the income section.

115

We adjusted total income to include tips from Form 4137.

116

Computed or transferred total taxable interest amount incorrectly.

117

Disallowed excludable savings bond interest because FSC 3.

119

Computed or transferred total taxable dividend income incorrectly.

121

Computed or transferred Schedule C incorrectly.

122

Computed or transferred Schedule D incorrectly.

123

Transferred capital gain or loss from Form 4797 incorrectly.

125

126

Computed or transferred Schedule E incorrectly.

127

Computed or transferred Schedule F incorrectly.

129

You can't claim negative unemployment compensation.

131

Computed taxable Social Security Benefits incorrectly.

132

You must deduct any repayment over the amount of Social Security Benefits received in the tax year on Schedule A.

134

Disallowed child's income from Form 8814 because income greater than the maximum allowed for the tax year.

136

138

Adjusted total income to include employer-provided benefits in excess of child care expenses.

141

Computed total income on your tax return incorrectly.

142

We changed the amount claimed as Educator Expenses.

147

We changed the amount claimed as IRA deduction that was more than the maximum amount.

148

We didn’t allow the amount claimed as IRA deduction because your modified AGI is more than the maximum allowable.

149

We didn’t allow the amount claimed as IRA deduction because you participate is a plan.

151

We didn’t allow the amount claimed as student loan interest because your filing status is married filing separately or your AGI is more than the maximum allowable.

152

We changed the amount of student loan interest deduction due to a computation error.

157

We changed the amount claimed as Archer MSA deduction because you claimed more than the maximum allowable.

158

We changed the deductible part of self-employment tax on your tax return.

159

We didn’t allow the amount claimed as a deductible part of self-employment from Schedule SE because you should have used Form 4137.

160

No self-employment tax was reported on Schedule SE.

161

We didn’t allow the amount claimed as a deduction for self-employed SEP, SIMPLE, and qualified plans because your employer adjusted box 1 on your Form W-2.

164

We didn’t allow the amount claimed as alimony paid because the spouse was claimed as an exemption on the tax return.

165

Disallowed combat pay excluded from income not identified as combat pay on your Form W-2.

166

We didn’t allow employer business expenses.

167

We didn’t allow qualified performing artist (QPA) expenses.

169

We didn’t allow the adjustment amount claimed as jury duty paid.

170

We changed the amount claimed as ordinary dividends on your tax return. The amount of qualified dividends cannot exceed the amount of ordinary dividends

171

We didn’t allow the amount claimed as Health Savings Account deduction because Form 8889 incomplete or missing.

172

We didn’t allow the amount claimed as Archer MSA deduction because Form 8853 incomplete or missing.

174

Total adjustments figured incorrectly.

175

AGI figured incorrectly.

216

Computed or transferred Form 8814 incorrectly.

218

We computed your tax for you.

273

We reduced or removed the total self-employment tax on page 2 of your tax return. Your net earnings were less than $400; therefore, they are not subject to self-employment tax.

501

550

We didn’t allow the loss you claimed because Form 6198, At-Risk Limitations, wasn’t attached to your tax return.

551

We didn’t allow moving expenses because Form 3903 was incomplete or missing.

553

We didn’t allow the amount claimed as unreimbursed employee expenses because Form 2106, Employee Business Expenses, was incomplete or missing.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

588

759

TPNC

Literal (International 1040 with Form 2555 and Form 1040-NR)

300

Form 2555/Form 2555-EZ was incomplete or not attached.

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

312

Disallowed part or all foreign tax credit. Foreign tax credit cannot be figured on income that is excluded on Form 2555/Form 2555-EZ.

314

We have disallowed your foreign earned income exclusion, housing exclusion, and/or housing deduction claimed on your tax return. Travel to Cuba is restricted.

325

You did not combine the income from your 'Dual-Status Statement' to your dual-status return correctly. We have adjusted your return accordingly.

328

We didn’t receive your answer to our request for the dates you were in the U.S. Therefore, we changed your dual status return using only Form 1040-NR. We have changed your tax return accordingly.

384

You may not exclude unearned income on Form 2555/Form 2555-EZ. You may be able to reduce your tax by filing an Amended Tax Return with Form 1116.

385

We changed the total income on your tax return to include the taxable amount of your foreign earned income.

386

We did not allow your Form 2555/Form 2555-EZ, Foreign Earned Income because you filed a Form 1040-NR tax return.

400

You can’t take an adjustment for Tuition and Fees on Form 1040-NR.

403

U.S. bank interest income is not taxable. We have adjusted your return accordingly.

404

We refigured your income to include capital gains from Form 8288-A.

406

Disallowed treaty exemption claim because you didn’t reply with more information.

409

Disallowed invalid treaty exemption claim.

413

State income tax payments must be claimed as an itemized deduction on Schedule A, Itemized Deductions. These payments can’t be subtracted from income on the tax return. If you filed a Schedule A, we changed it to include the state income tax payments. If you didn’t file a Schedule A, we allowed it as your total itemized deduction on Schedule A because it lowered your taxable income. (Form 1040-NR)

415

Disallowed scholarship or fellowship exclusion required supporting statement was not attached.

416

The amount of scholarship or fellowship exclusion can’t exceed the amount of scholarship or fellowship received. We have adjusted your return accordingly.

429

447

Your tax rate for gambling winnings paid to nonresident aliens is 30 percent.

448

Gambling winnings are exempt from tax due to a U.S. tax treaty.

494

We disallowed part of the tax treaty exemption on your return because you claimed more than the maximum amount.

Exceptions & meaning →

Error Code 232 Medical Deduction Form 1040 Schedule A¶

EC 232 generates on Form 1040. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, Error Code 232/532 — Medical Deduction, for screen display, invalid conditions and correction procedures.

Exceptions & meaning →

Error Code 236 - Total Taxes Real Estate and/or State and Local Tax¶

EC 236 generates on Form 1040 and Form 1040-NR when Schedule A is present and taxpayer's amount for Total Itemized Deductions differs from the computers amount and the difference between Total Tax Deduction and Total Tax Deduction Computer is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 236, for invalid conditions and correction procedures and allowable TPNCs for Form 1040.

Exceptions & meaning →

Caution:¶

Exceptions & meaning →

Fields Displayed - EC 236- Form 1040-NR¶

The following fields are displayed for EC 236.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

0701A

State and Local Income Tax

Schedule A Tax Computer Amount

0701E>

State and Local Taxes Computer

04OTI

Other Income

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

0707

Other Non Limited Miscellaneous Deduction

0708

Total Itemized Deductions

Total Itemized Deductions Computer

Taxable Income

Taxable Income Computer

03TAX

Total Tax IMF

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

360

We did not allow your deduction for foreign taxes paid on Form 1040, Schedule A because you already claimed those taxes as a foreign tax credit on Form 1116.

408

We changed the amount claimed as deductions on your tax return. As a resident of India who was a student or business apprentice you may use either the standard deduction or itemized deductions; however, you cannot use both. We used the amount that resulted in a lower taxable income. (Form 1040-NR)

414

(TY 2018 and later) - We changed the amount claimed as itemized deductions on your tax return because your deduction for state and local taxes is more than the amount allowed for your filing status. (Form 1040-NR/)

418

You aren’t entitled to the standard deduction when you file Form 1040-NR/NR-EZ. We changed your return accordingly. (Form 1040-NR/)

Exceptions & meaning →

Error Code 238 - Taxpayer's Total Interest Deduction Form 1040 Schedule A¶

EC 238 generates on Form 1040 when Total Interest Deduction is not equal to Total Interest Deduction Computer.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 238, for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Error Code 240/540 - Total Contributions¶

EC 240 generates on Form 1040 and Form 1040-NR when total Itemized Deduction is not equal to Total Itemized Deduction Computer and Schedule A Total Contributions is not equal to Schedule A Total Contributions Computer.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 240 for invalid conditions and refer to both IRM 3.12.3 and IRM 3.22.3 for correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 240¶

The following fields are displayed for EC 240.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01RPC

Return Processing Code

01ACD

Audit Code

S14DP

Section 14 Data Present

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

0702

Cash Contributions

0703

Other Contributions

0704

Carryover Contributions

0705

Total Contributions

Total Contributions Computer

Exceptions & meaning →

Note:¶

The fields displayed for EC 540 will include a Clear Code field and Field 02NC> and all other fields will be the same as EC 240.

Exceptions & meaning →

Correction Procedures - EC 540 Form 1040-NR¶

If Other Contributions in Field 0703, from line 3 of Schedule A, Form 1040-NR, is greater than $500 and Form 8283 is:

present and complete, enter RPC "H"

not present or incomplete, correspond for Form 8283

Refer to all instructions for Error Code 240 in IRM 3.12.3

Enter "C" in the Clear Field when there are no corrections to be made.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 240¶

The following Taxpayer Notice Codes are used for EC 240.

TPNC

Literal

Any previously assigned TPNC.

100

180

Changed charity deduction on your Schedule A, Itemized Deductions, because it was figured incorrectly or not limited based on your adjusted gross income.

181

We changed the amount claimed as a deduction for charitable contributions on your Schedule A because one or more of the following was incomplete or not attached to the return: - Form 8283, Noncash Charitable Contribution. - The required documentation to support your donation of a motor vehicle, airplane or boat. - An appraisal for your donation of art.

218

We computed your tax for you.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

Exceptions & meaning →

Note:¶

The above literals are abbreviated. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, Taxpayer Notice Codes, for complete literal for Domestic TPNCs.

Exceptions & meaning →

Error Code 242/542 - Casualty or Theft Loss (Form 4684)¶

EC 242 generates on Form 1040 and Form 1040-NR when a math error is present in either Total Itemized Deduction or Casualties and Thefts.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 242, for invalid conditions and refer to both IRM 3.12.3 and IRM 3.22.3 for correction procedures and allowable TPNCs.

Form 1040-NR - Casualty or Theft Loss is reported on line 6 of Schedule A on Form 1040-NR. Field 0706 is the same as Field 0715 on Schedule A of Form 1040. Follow the instructions in IRM 3.12.3EC 242, except for the instructions in paragraph 4(C) for the transfer of Carryover Casualty and Theft Loss. Assign TPNC 182 for a transfer error and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. The EC 242 instructions for TY 2016 and TY 2017 Qualified Disaster Losses also apply to Form 1040-NR. Field 0708 on Form 1040-NR Schedule A is the same as Field 0717 on Form 1040 Schedule A.

Exceptions & meaning →

Fields Displayed - EC 242¶

The following fields are displayed for EC 242.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01FPC

Form Processing Code

0404

Other Gains and Losses

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

0705

Total Contributions

0706

Total Casualty and Theft

Total Casualty and Theft Loss Computer

26DDN

FEMA Disaster Declaration Number

26ZIP

Most Affected Property Zip Code

2613

Total Personal Use Property Gains Amount

2614

Total Personal Use Property Losses Amount

2616

Gross Casualties and Theft

26CTP>

Casualty and Thefts Loss Percentage Computer Amount

S26NP

Section 26 Not Present

0707

Other Non-Limited Miscellaneous Deductions

Exceptions & meaning →

Note:¶

The fields displayed for EC 542 will include a Clear Code field and all other fields will be the same as EC 242.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 242¶

The following Taxpayer Notice Codes are used for EC 242.

TPNC

Literal

Any previously assigned TPNC.

100

111

Your return has been converted to Form 1040.

176

Transferred AGI from page 1 to page 2 incorrectly.

182

Computed or transferred Form 4684 incorrectly.

218

We computed your tax for you.

552

No reply Form 4684.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

Exceptions & meaning →

Note:¶

The above literals are abbreviated. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, Taxpayer Notice Codes, for complete literal for Domestic TPNCs.

Exceptions & meaning →

Error Code 244/544 - Reserved¶

Error Code 246/546 - Total Itemized Deductions¶

EC 246 generates on Form 1040 and Form 1040-NR when Total Itemized Deductions is not equal to Total Itemized Deduction Computer.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 246, for invalid conditions. Refer to both IRM 3.12.3 and IRM 3.22.3 for correction procedures and allowable TPNCs. Comparable fields are as follows:

Form 1040, Schedule A

Form 1040-NR, Schedule A

0716

0707

0717

0708

Exceptions & meaning →

Fields Displayed - EC 246¶

The following fields are displayed for EC 246.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01FPC

Form Processing Code

01RPC

Return Processing Code

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

S07NP

Section 07 Not Present

0701A

State and Local Income Tax

Schedule A Tax Computer Amount

0701E>

State and Local Income Tax Computer

0705

Total Contributions

Total Contributions Computer

0706

Total Casualty/Theft Loss

Total Casualty/Theft Loss Computer

0707

Other Non-Limited Miscellaneous Deductions

0708

Total Itemized Deductions

Total Itemized Deductions Computer

07LIM>

Schedule A Total Itemized Percentage Computer

0708V

Total Itemized Deduction Verified

Exceptions & meaning →

Note:¶

The fields displayed for EC 546 will include a Clear Code field and 02NC> and all other fields will be the same as EC 246.

Exceptions & meaning →

Correction Procedures - EC 246 - Form 1040-NR¶

If the taxpayer is a resident of India and claims the standard deduction and also lists itemized deductions, follow instructions at IRM 3.22.3.190.2.2.1.

Exceptions & meaning →

Note:¶

For TY 2016 and later, the qualified resident of India may claim the standard deduction and net disaster loss.

Dual Status - Enter amount(s) in Field 0707 when processing a dual-status return and Itemized Deductions are claimed on Schedule A Form 1040 that do not have a corresponding line on Schedule A Form 1040-NR.

Net Disaster Loss TY 2016 and Later - If the taxpayer on Form 1040-NR is claiming a qualified disaster loss on line 7 of Schedule A, then follow these procedures.

If Form 4684 is not attached to support a personal disaster loss deduction, SSPND 215 and correspond for Form 4684.

If Form 4684 is present, accept the entry and enter in Field 0707.

Foreign Tax Deduction - A taxpayer can choose each year to take the amount of any qualified foreign income tax paid or accrued during the tax year as a foreign tax credit, (Form 1116) "OR" as an Other Itemized Deduction (Schedule A, line 7).

And

Then

The taxpayer is claiming foreign income taxes on Schedule A,

The taxpayer did NOT claim foreign tax credit on Form 1116

Allow the deduction on line 7 of Schedule A.

Exceptions & meaning →

Note:¶

Taxpayers are NOT required to attach any documentation if they are claiming foreign income taxes paid on a Schedule A.

The taxpayer is claiming foreign income taxes on Schedule A,

The taxpayer claims a foreign tax credit on Form 1116,

Disallow the deduction on Schedule A and issue a TPNC 360.

Exceptions & meaning →

Note:¶

Foreign taxes paid may be claimed as an Itemized Deduction on Schedule A on dual-status Returns subject to limitations above.

If line 7 has an entry for miscellaneous deductions that are not deductible in TY18 and later follow instruction in IRM 3.12.3.23.7.5(6)D]

TY17 and prior, Form 1040 - When Form 2555 is attached, the taxpayer may annotate "Miscellaneous Deduction limited under IRC 911" . ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Enter this amount in Field 0716. For other corrections see IRM 3.12.3, EC 246

TY17 and prior, Form 1040-NR - In addition to the special instructions below, follow the instructions in IRM 3.12.3, EC 246, for Miscellaneous Deductions. The table below displays the fields and the corresponding line numbers for TY17 and prior Schedule A.

Form 1040-NR, Schedule A

Form 1040, Schedule A

Line 7

Line 21

Line 10

Line 24

Line 13

Line 27

Line 14

Line 28

If an amount is claimed on line 7 that is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and noForm 2106 or Form 2106EZ or similar statement is attached, SSPND 215 and correspond for the form using Form 13900.

If an amount is identified as "exempt under a tax treaty" on line 13, enter the allowable exempt income on line 22 of Form 1040-NR. On EC 246, assign TPNC 316

Don’t assign unallowable codes on Form 1040-NR.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 246¶

The following TPNCs are used for EC 246.

TPNC

Literal

Any previously assigned TPNC.

100

111

Your return has been converted to Form 1040.

178

Computed Taxes paid on Schedule A incorrectly.

180

We changed the amount claimed as total gifts to charity on your Schedule A, Itemized Deductions, because it was figured incorrectly or the amount was not limited based on your adjusted gross income.

182

We changed the amount claimed as casualty and theft losses on your Schedule A, Itemized Deductions because there was an error on your Form 4684, Casualties and Thefts. The error was in one of the following: The amount was computer incorrectly. Some or all of your deductions are subject to the 2% limitation.

183

Computed total Miscellaneous deduction incorrectly.

184

We can't allow gambling losses claimed on Schedule A greater than gambling winnings reported as income on Form 1040.

185

"Other Miscellaneous Deductions" are subject to the 2 percent limitation.

186

You didn't limit your Itemized Deductions correctly. You are required to limit your Itemized Deductions because of your AGI.

187

Computed or transferred Itemized Deductions incorrectly.

218

We computed your tax for you.

552

No reply Form 4684.

553

No reply, Form 2106.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

TPNC

Literal

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR because certain items reported on your tax return require you to file a Form 1040-NR. You do not need to send us another return to correct this error. The following paragraph(s) will explain any additional change(s) we made. (Form 1040-NR)

316

Income exempt under a tax treaty cannot be claimed as a miscellaneous itemized deduction on Schedule A. We adjusted your return accordingly.

448

Gambling winnings are exempt from tax due to a U.S. tax treaty with your country of residence.

Exceptions & meaning →

Note:¶

The above literals are abbreviated. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, Taxpayer Notice Codes, for complete literal for Domestic TPNCs, see Exhibit 3.22.3-9 for complete literal for International TPNCs.

Exceptions & meaning →

Error Code 248 - Qualified Business Income Deduction Qualification¶

EC 248 generates on Form 1040-NR and Form 1040 when the Qualified Business Income Deduction (QBID) amount is significant and:

Taxable Dividends amounts is not significant and

Schedule C Profit Loss is not significant and

Section 09/10/11 is not present and

Supplemental Gain Loss is not significant and

Section 27 is not present and

Schedule E Profit Loss is not significant and

Section 13 is not present and

Schedule F Profit Loss is not significant and

Section 14/15 is not present and

Section 55 is not present and

Form 8995 Domestic Production Activities Deduction is not significant

Refer to IRM 3.12.3, Error Resolution, Individual Tax Returns, EC 248, for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 248¶

The following fields are displayed for EC 248.

1040-NR

Field Title

Clear Code

01FSC

Filing Status Code

01TXP

Tax Period

01RPC

Return Processing Code

01ACD

Audit Code

03DIV

Taxable Dividends

0403

Schedule C Profit Loss

0404

Supplemental Gains Losses

0405

Schedule E Profit Loss

0406

Schedule F Profit Loss

55BIC

Qualified Business Income Component

55REI

REIT and PTP Component

55NCG

F8995 Net Capital Gains

55DPA

F8995 Domestic Production Activities Deduction

03QBI

Qualified Business Income Deduction Amount

F8995 Qualified Business Income Deduction Computer

94QBV

Qualified Business Income Deduction Verified

S09NP

Section 09 Not Present

S10NP

Section 10 Not Present

S11NP

Section 11 Not Present

S13NP

Section 13 Not Present

S14NP

Section 14 Not Present

S15NP

Section 15 Not Present

S27NP

Section 27 Not Present

S55NP

Section 55 Not Present

Exceptions & meaning →

Error Code 249/549 - Qualified Business Income Deduction Limitation¶

EC 249 generates on Form 1040-NR and Form 1040 when the Qualified Business Income Deduction is not equal to F8995 Qualified Business Income Deduction Computer

Refer to IRM 3.12.3, Error Resolution, Individual Tax Returns, EC 249, for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - Error Code 249/549¶

The following fields are displayed for EC 249.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01SPC

Special Processing Code

03DSI

Dependent Status Indicator

01RPC

Return Processing Code

01ACD

Audit Code

03QD

Qualified Dividends

03CGL

Schedule D Profit Loss

Schedule D Profit Loss Computer

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

0708

Total Itemized Deduction

Total Itemized Deduction Computer

03TTI>

Tax Table Income Computer

03QBI

Qualified Business Income Deduction

F8995 Qualified Business Income Deduction Computer

94QBV

Qualified Business Income Deduction Verified

03INC

Taxable Income

Taxable Income Computer

S12NP

Section 12 Not Present

1207

Net Short Term Gain or Loss Amount

1215

Net Long Term Gain or Loss Amount

S55NP

Section 55 Not Present

55BIC

Qualified Business Income Component

55REI

REIT and PTP Component

55NCG

F8995 Net Capital Gains

55DPA

F8995 Domestic Production Activities Deduction

Exceptions & meaning →

EC 249 - IRC 933 or Income Excluded from Puerto Rico¶

TY19 and later, if there is an amount on Form 1040, line 13 (TY19, line 10) and Form 8995 or Form 8995-A is not attached, SSPND 215 and correspond for the form.

When it appears taxpayer is excluding income from Puerto Rico claiming IRC 933 exclusion, enter the amount form Field 03QBI in Field 94QBV. If EC 256 generates, follow the procedures in IRM 3.22.3.190.2.1.3

Exceptions & meaning →

The following fields are displayed for EC 256.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01CCC

Computer Condition Code

01FPC

Form Processing Code

01EXC

Exemption Code Field

94EXV

Exemption Code Verified

01RPC

Return Processing Code

03DSI

Dependent Status Indicator

8808

Form 4563 Indicator

Primary NAP Date of Birth

03TWG

Total Wages Amount

03INT

Taxable Interest Income

04OTI

Other Income Amount

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

S07NP

Section 07 Not Present

State and Local Income Taxes

0708

Total Itemized Deductions

Total Itemized Deductions Computer

Total Itemized Deduction Verified

01PYB>

Primary NAP Date of Birth

01SYB>

Secondary NAP Date of Birth

03TTI>

Tax Table Income Computer

03QBI

Qualified Business Income Deduction Amount

F8995 Qualified Business Income Deduction Computer

03INC

Taxable Income

Taxable Income Computer

94INV

Taxable Income Verified Amount

Exceptions & meaning →

Correction Procedures - EC 256¶

Correct coding and transcription errors and misplaced entries on displayed fields.

Correction procedures are divided into sections by type of tax return: Form 1040, Form 1040-NR, and dual-status.

EC 256 generates for taxable income errors on all tax years.

Exceptions & meaning →

Correction Procedures EC 256 - Form 1040¶

This subsection includes correction procedures for:

TY 2016 and Later Qualified Disaster Losses and Standard Deduction

IRC 931 or Form 4563

IRC 933 or Income Excluded from Puerto Rico

Form 2555 Exclusion

Tax Treaty Claimed

Ensure the income is reported in Field 03WG.

Enter the exempt income in Field 04OTI as a negative amount.

Tax treaty claim is invalid,

Ensure the income is reported in Field 03WG.

Adjust Field 04OTI to delete the invalid tax treaty

Assign TPNC 409.

If Article 19 for China is claimed, and it can be determined from the taxpayer’s entries on the return or attachments that the taxpayer has claimed the tax treaty for more than 3 years,

Ensure the income is reported.

Adjust Field 04OTI to delete the invalid tax treaty income.

Assign TPNC 337

If Article 20c is claimed for an amount greater than $5,000,

Ensure all of the income is reported in Field 03WG.

Adjust Field 04OTI to allow whichever is less: the maximum $5,000 or the maximum income up to the $5,000 limit.

Assign TPNC 494 if needed.

The taxpayer claimed a tax treaty amount for more than they earned,

Ensure the income is reported.

Adjust Field 04OTI to allow whichever is less: the maximum treaty exclusion or maximum earned income.

The taxpayer claimed a tax treaty amount for other income (not earned for the purpose of Article 19, 20a or 20c),

Ensure the income is reported.

If Itemized Deductions include losses from Form 4684, follow the procedures in paragraph (2).

Then

The standard deduction is the most beneficial to the taxpayer,

GTSEC 07 and enter the standard deduction amount in Field 0707 and Field 0708.

Assign TPNC 408.

Itemized deductions are most beneficial to the taxpayer,

If Section 07 is present with entries, ensure that the standard deduction amount is deleted, OR

If Section 07 is not present, GTSEC 07 and enter the itemized deductions in appropriate fields.

Assign TPNC 408.

Residents of India Disaster Tax Relief. For TY 2016 and later, taxpayers eligible for the standard deduction on Form 1040-NR may increase the standard deduction amount by claiming a deduction for certain disaster losses on Form 4684, Casualties and Thefts. On Form 1040-NR, this increase applies only to the residents of India who are eligible to claim the standard deduction. For these taxpayers only follow these procedures.

If the amount on line 12 (TY 21, line 12a; TY20, line 12; TY19, line 37) is equal to the standard deduction (plus additional standard deduction "ABI" ), GTSEC 07 and enter this amount in Field 0707 and Field 0708.

If Form 4684 is attached to the return, and the amount on line 12 (TY 21, line 12a; TY20, line 12; TY19, line 37) is equal to the amount on line 15 of Form 4684 plus the standard deduction/ABI, GTSEC 07 and enter this amount on line 12 (TY 21, line 12a; TY20, line 12; TY19, line 37) in Field 0707 and Field 0708.

If Form 4684 is not attached, Schedule A is not attached (or blank), and the taxpayer's amount on line 12 (TY 21, line 12a; TY20, line 12; TY19, line 37), Form 1040-NR, is greater than the standard deduction/ABI, SSPND 215 and correspond using paragraph # on Form 13900 and fill-in "C" in Exhibit 3.22.3-12.

Exceptions & meaning →

EC 256 - Standard Deduction and Itemized Deductions (other than Residents of India)¶

Form 1040-NR filers are not entitled to the standard deduction. If the standard deduction is claimed, assign TPNC 418.

On Form 1040-NR, Non Itemized Charitable Contribution Deduction for TY21 only on line 12b (for TY20 only, line 10b) is only allowed to certain residents of India. This deduction is limited to $300 (TY20 filing status 1 and 5, $300, FS 3, $150).

If the taxpayer made an error computing total itemized deductions, or incorrectly transferred the correct amount to line 12 (TY21, line 12a; TY20, line 12; TY19, line 37) of Form 1040-NR, assign TPNC 187.

TY18 and later, If the amount on line 12 (TY21, line 12a; TY20, line 12; TY19, line 37) is equal to the local and state tax withheld reported on supporting documentation (Form W-2, Form 1042-S, Form 1099 etc.), then GTSEC 07 and enter the amount in Field 0701A and 0708.

If Schedule A of Form 1040-NR is not attached (or blank), and the taxpayer has an amount on line 12 (TY21, line 12a; TY20, line 12; TY19, line 37)that isn’t the standard deduction, SSPND 215 and correspond for Schedule A using Paragraph T of Form 13900.

Exceptions & meaning →

Note:¶

On MeF Form 1040-NR, TY19 and prior, Schedule A may be displayed as page 3 of the Form 1040-NR and isn’t listed as a separate schedule in the MeF Return Request and Display. Scroll through the pages of the Form 1040-NR to find Schedule A.

Exceptions & meaning →

EC 256 - TY 2017 and prior, Exemptions¶

If an ITIN has expired, then assign the following TPNCs as applicable, in addition to any TPNCs that apply after following the procedures in the paragraphs below:

If the Primary ITIN Status Code is "I" then assign TPNC 642.

If the Secondary ITIN Status Code is "I" then assign TPNC 643.

If a Dependent ITIN Status Code is "I" then assign TPNC 317.

If the primary’s TIN is invalid, enter RPC O, adjust 94EXV if other dependents are claimed, and assign TPNC 205.

Exemptions are restricted by country of residence. Determine the country of residence using taxpayer information on Form 1040-NR as described at IRM 3.22.3.11.3.

Exceptions & meaning →

Caution:¶

If line 39 is $300 or $100 (Trust) or $600 (Estate) or taxpayer quotes IRC 642(b)(2)(c) and enters $4,150 on line 39, transship the return to KCSPC (SSPND AC 640), see IRM 3.22.3.11.

If the taxpayer

And

Then

Is a resident of South Korea,

Claims exemptions for self, spouse and children who live with them in the United States,

Allow exemptions.

Is a resident of South Korea,

Claims an exemption for other than self, spouse or child(ren) who did not live in the United States,

Enter allowable exemption(s) in Field 94EXV.

Assign TPNC 402.

Exceptions & meaning →

Reminder:¶

Ensure the correct number of exemptions claimed are in Field 01EXC.

Is a resident of South Korea,

Claims fractional exemption.

Verify their taxable income in Field 94INV.

Is a resident of Canada, Mexico or a United States National,

Allow exemptions for self, spouse, children and other dependents.

Is a resident of India,

Allow the exemptions for self, spouse, and dependents.

Is allowed exemptions based on country of residence as listed above,

The TIN is invalid or missing.

Assign TPNC 206 or 605 as appropriate.

All others, or if unable to determine the country of residence,

GTSEC 01 and delete name controls and TINs for spouse and dependents.

Allow only one exemption for self in position 1 of Field 94EXV.

Assign TPNC 401.

Exceptions & meaning →

Note:¶

See paragraph (5) below if taxpayer did not claim a personal exemption.

If the taxpayer incorrectly added the exemptions claimed (lines 7a - 7c) or made an error computing the exemption amount on line 40 based on the total exemptions claimed on line 7d, assign TPNC 457.

Exceptions & meaning →

Note:¶

Enter the correct number of exemptions in Field 94EXV.

Exceptions & meaning →

Note:¶

A U.S. National is an individual who owes his sole allegiance to the United States, including all U.S. citizens and some individuals who are not U.S. citizens. These individuals would include citizens of U.S. territories such as American Samoa and the Commonwealth of the Northern Mariana Islands.

Use the following table for procedures to determine whether or not to code the DSI field.

Then

The taxpayer did check the box on line 7a, AND

Did not claim an exemption,

Assign TPNC 458.

The taxpayer did not check the box on line 7a,

Did not make an entry or entered 0 (zero) or dash on the line to the far right of the box, AND

Did not claim an exemption,

Enter 1 in Field 03DSI and transmit to follow taxpayer's intent.

The taxpayer did not check the box on line 7a,

Did not make an entry or entered 0 (zero) or dash on the line to the far right of the box, AND

Claimed an exemption,

Enter 1 in Field 03DSI and transmit.

Assign TPNC 202 if EC 256 redisplays.

Exceptions & meaning →

Exception:¶

When information on the return (e.g., occupation, income amount or signature) indicates that the taxpayer is entitled to the full standard deduction and exemption, delete the DSI code if present.

Exceptions & meaning →

EC 256 - Taxable Income Computation Error¶

If there is an amount present on line 13b (TY19, line 39), Form 1040-NR and it is used in the computation of taxable income, see whether taxpayer meets any one of the conditions described in IRM 3.22.3.11 paragraph (5) and follow the instructions below.

Then

Taxpayer meets any one of the condition as mentioned above

SSPND 640 to transship return to Kansas City Submission Processing Center (KCSPC)

taxpayer does not meet any condition

TY18 and later, Assign TPNC 455.

Taxpayer does not meet any condition

TY17 and prior, refer to EC 256, TY 2017 and prior, Exemptions at IRM 3.22.3.190.2.2.3

If the taxpayer did not compute taxable income and indicates a tax treaty income exemption on the return, follow the chart below.

Then

The taxpayer is claiming an exemption of income under a tax treaty or treaty article,

Verify the tax treaty claim using Exhibit 3.22.3-1 and Exhibit 3.22.3-2 (Personal Service Income) or Exhibit 3.22.3-3 (Other than Personal Service Income).

Tax treaty claim is valid,

GTSEC 03 and 04 as appropriate.

Delete the income where reported.

Enter the valid tax treaty amount in Field 03TEX.

Tax treaty claim is invalid,

GTSEC 03 and 04 as appropriate.

Make sure the income is reported

Delete the treaty amount claimed from Field 03TEX.

Assign TPNC 409.

Exceptions & meaning →

Note:¶

If the income was not reported and EC 218 generates assign TPNC 409.

The taxpayer is excluding income and If question "L" is not answered on Schedule OI and Code & Edit has not previously corresponded for the missing information,

SSPND 215 to correspond selecting paragraph J on Form 13900.

The Tax Treaty claimed is not listed in Exhibit 3.22.3-1 or Exhibit 3.22.3-2 and the income is to be taxed as effectively-connected income,

GTSEC 03 and 04 as appropriate

Make sure the income is reported.

Delete the treaty amount claimed from Field 03TEX.

Assign TPNC 409.

Exceptions & meaning →

Note:¶

If the income was not reported and EC 218 generates assign TPNC 409.

The Tax Treaty claimed is not listed in Exhibit 3.22.3-1 or Exhibit 3.22.3-2 and the income is to be taxed as not effectively connected income,

GTSEC 03 and delete the treaty amount from Field 03TEX.

Use Exhibit 3.22.3-3 to determine the correct tax rate.

GTSEC 46 and enter the income in the applicable field based on the rate.

When EC 311 generates, assign TPNC 429.

TY18 and later, if the taxpayer made an error subtracting itemized deductions line 12 (TY21, line 12a; TY20, line 12; TY19, line 37), or qualified business income deduction line 13a (TY19, line 38), from AGI line 11 (TY19, line 35), assign TPNC 410.

TY17 and prior, if the taxpayer made an error in subtracting itemized deduction from adjusted gross income (line 39), assign TPNC 411.

TY17 and prior, if the taxpayer incorrectly subtracted their exemption amount assign TPNC 449.

Exceptions & meaning →

Correction Procedures EC 256 - Dual Status¶

Restrictions for Dual-Status Taxpayers - The following restrictions apply if the taxpayer is filing a tax return for a dual-status tax year.

Standard Deduction- the taxpayer cannot use the standard deduction. If a dual-status taxpayer claims the standard deduction, assign TPNC 324.

Exceptions & meaning →

Note:¶

When a Form 1040 is the controlling return, the computer may erroneously allow a standard deduction amount. If that occurs, enter "1" in Field 07IEI.

Exceptions & meaning →

Exception:¶

Some taxpayers from India are eligible to claim the standard deduction under Article 21(2) of the United States-India Treaty.

Exemptions - On returns prior to TY 2018, the taxpayer's total deduction for personal exemptions for their spouse and allowable dependents cannot be more than their taxable income (figured without deducting personal exemptions) for the period they are a resident alien.

Head of Household - Dual-status taxpayers cannot use the head of household Tax Table column or Tax Rate Schedule.

Joint Return - Dual-status taxpayers cannot file a joint tax return (married filing jointly).

Renumbering of Tax Returns - See "Dual-Status - General Information" at IRM 3.22.3.6 for information on determining the "Controlling Return" . Follow If and Then chart below:

Then

The "controlling return" (the return to be processed) is a Form 1040, but the Form 1040-NR"statement" was originally numbered as the controlling return,

SSPND 610.

The "controlling return" is Form 1040-NR, but the Form 1040 "statement" was originally numbered as the controlling return,

SSPND 610.

The taxpayer indicates dual-status but did "NOT" include both a "controlling return" and a "statement" and Code & Edit did NOT correspond for it,

SSPND 215 and select paragraph V of Form 13900.

Exceptions & meaning →

Exception:¶

If the taxpayer is electing to be treated as a U.S. resident as indicated in below, do NOT correspond. Process as Form 1040.

Combine all related income amounts from the statement with the income amounts in Section 03 and Section 04 of the controlling return. If the taxpayer failed to combine the income from the return and statement, assign TPNC 325.

Exceptions & meaning →

Note:¶

If the controlling return and the statement return have identical entries do not combine tax returns.

Combine all Itemized Deductions from the statement with the amounts in Section 07 of the controlling return.

Exceptions & meaning →

Note:¶

If there is not a coinciding field (line) when combining Schedule A, Form 1040 and Form 1040-NR, enter the amount(s) in Field 0707.

Exceptions & meaning →

EC 256 - Filing Status for Dual-Status¶

Filing Status (FS) - Filing status can be 1, 3, or 5 on a TY 2018 and later dual-status return. On TY 2017 and prior, if an exemption for the spouse is claimed, filing status 6 is allowed in addition to filing status 1, 3 or 5. See Filing Status instructions at IRM 3.22.3.15.12.

Exceptions & meaning →

Exception:¶

A nonresident may elect under IRC 6013(g) and Treas. Reg. 1.6013-g(a)(4)to be treated as a U.S. resident for the entire year and use Married Filing Jointly (FSC "2" ) tax rates to report worldwide income. To make this election the taxpayers must attach a statement to the joint return declaring that they qualify under IRC 6013(g) to file as U.S. residents for the entire tax year. They must also include the name, address and taxpayer identification numbers of each spouse. These taxpayers are not generally allowed to claim tax treaty benefits.

If the taxpayer is making an election under IRC 6013(g) to be treated as a U.S. resident as indicated in the Exception above, then do not process as "Dual-Status" . Follow the instructions below:

Then

The taxpayer meets the criteria above,

Ensure all income from both spouses is reported on the Form 1040 and process as a Form 1040 that is not dual-status.

The taxpayer selects "married filing jointly" and uses the benefits of FS 2, and any required information is missing such as the spouse's name, SSN, signature or signed statement,

SSPND 215 to correspond for the missing information.

The taxpayers don't meet the criteria under IRC 6013(g) and Treas. Reg. 1.6013-6(a)(4), and only one spouse is reporting income,

Delete the name of the spouse that is not reporting income from Field 01NL1.

Exceptions & meaning →

Caution:¶

Make sure the TIN in Field 01PS is for the name that is remaining in Field 01NL1.

Enter "3" in Field 01FSC.

Exceptions & meaning →

Note:¶

TY17 and prior, enter "6" if appropriate.

Assign TPNC 330

FS 2 - Dual-status taxpayers cannot file a joint tax return (except if making an election as described above). To determine the appropriate filing status, follow the instructions for dual-status returns in Field 01FSC at IRM 3.22.3.15.12. If changing the filing status to FS 3 or 6 (TY17 and prior), assign TPNC 330

FS 4 - Dual-status taxpayers cannot use the head of household tax. If you can determine the filing status used was FS 4, change FS 4 to 1 or 3 as appropriate and assign TPNC 330.

Exceptions & meaning →

EC 256 - TY 2017 and prior, Exemptions for Dual-Status¶

A dual-status taxpayer usually will be able to claim his/her own personal exemption. They are subject to the general rules for qualification; they can claim exemption for their spouse and dependents when they figure taxable income for the part of the year that they were resident aliens. The amount they can claim for these exemptions is limited to their taxable income (figured before subtracting exemptions) for the part of the year they were resident aliens. They cannot use exemptions (other than their own) to reduce taxable income to less than zero for that period.

Code & Edit is instructed to edit all exemptions as appropriate.

Then

The taxpayer's Form 1040, line 41 income is equal to or exceeds the total exemption amount,

Allow all valid exemptions.

Exceptions & meaning →

Example:¶

The taxpayer has $20,000 of income on Form 1040, line 41, has $2,000 in income on Form 1040-NR, line 39, and claims three (3) valid exemptions. Allow $12,150 for exemptions.

The taxpayer's Form 1040, line 41 is less than the total exemption amount,

Manually compute exemption amount and GTSEC 01 and enter the allowable exemption(s) in Field 94EXV.

Exceptions & meaning →

Example:¶

The taxpayer has income of $10,000 on Form 1040, line 41, has income of $50,000 on Form 1040-NR, line 39, and claims four (4) valid exemptions. Allow only $8,100 for 2 exemptions by adjusting Field 94EXV.

EC 256 generates, assign TPNC 330

Exceptions & meaning →

Note:¶

When deleting exemptions, delete the dependents before deleting spouse or primary.

Exceptions & meaning →

Example:¶

If the end result is 2.6 exemptions, allow 3).

Exceptions & meaning →

Note:¶

Child Tax Credit - If exemptions are reduced/limited, be sure to use Field 94CEV to limit Child Tax Credit computation and Field 21QI when Child Care Credit is claimed.

Exceptions & meaning →

EC 256 - Dual-status and Excluding Income¶

Then

The taxpayer is excluding foreign income earned during the Form 1040-NR period with Form 2555, and Form 2555 has been X’d by Code & Edit,

Delete the Form 2555 entry in Field 04OTI and Field 04ADJ.

Make sure the income amount has been included on Form 1040 and Schedule 1.

Assign TPNC 387.

Tax Treaties - Generally, dual-status taxpayers may be eligible for tax treaty benefits only with respect to income received during the period that they are nonresident aliens. The country, the amount of income exempt by a tax treaty, and the tax treaty article under which an exemption is claimed must be reported on Form 1040-NR.

Then

The taxpayer is excluding income based on a tax treaty on Form 1040-NR,

Do not include the excluded income.

Exceptions & meaning →

Caution:¶

When processing international cases, care must be taken to follow all instructions in IRM 3.12.2, Individual Master File Error Resolution General Instructions concerning identifying and forwarding possible refund scheme, frivolous and fraudulent cases to the appropriate areas of the Service.

Exceptions & meaning →

Error Code 257 - Form 8615 Deductions¶

EC 257 generates when inconsistent data is on Form 8615 and Schedule A.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 257, for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 257¶

The following fields are displayed for EC 257.

1040-NR

Field Title

Clear Code

01FSC

Filing Status Code

01TXP

Tax Period

S07NP

Section 07 Not Present

0708

Total Itemized Deductions

Total Itemized Deductions Computer

3302

Form 8615 Deductions

Exceptions & meaning →

Error Code 258/558 - Form 8615 Tax¶

EC 258 generates when inconsistent data is on Form 8615 and Tentative Tax Computer.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 258 for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 258¶

The following fields are displayed for EC 258.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01NL1

Name line 1

01NL2

Name line 2

03DSI

Dependent Status Indicator

03INC

Taxable Income Amount

Taxable Income Amount Computer

94INV

Taxable Income Amount Verified

33PNC

Parents Name Control

33PSS

Parents SSN

3301

Form 8615 Gross Investment Income

3302

Form 8615 Deductions

3318

Form 8615 Tax

Form 8615 Tax Computer

3318V

Form 8615 Tax Verified

Exceptions & meaning →

Note:¶

The fields displayed for EC 558 will include a Clear Code field and Field 02NC> and all other fields will be the same as EC 258.

Exceptions & meaning →

Error Code 260 - CCC "Y"¶

EC 260 generates when Computer Condition Code "Y" is present in Field 01CCC. CCC Y is edited by Code & Edit or generated by computer programming to force returns to ERS. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 260 for invalid conditions and refer to both IRM 3.12.3 and IRM 3.22.3 for correction procedures.

Exceptions & meaning →

Fields Displayed - EC 260¶

The following fields are displayed for EC 260.

1040-NR

1040-SS (sp)/1040-SS

Field Title

Clear Code

01FSC

Filing Status Code

01TXP

Tax Period

02RI

Revalidation Indicator

01CCC

Computer Condition Code

01EXC

Exemption Code Field

94EXV

Exemption Code Verified Field

01RPC

Returns Processing Code

01ACD

Audit Code Field

03INC

Taxable Income

Taxable Income Computer

94INV

Taxable Income Amount Verified

03TTX

Tentative Tax

Tentative Tax Computer

94TTV

Tentative Tax Verified

0503

Combined SE Tax

Combined SE Tax Computer

03TAX

Total Tax

Total Tax IMF Computer

94TXV

Total Tax IMF Verified

05ESS

Excess Social Security Tax Withheld

17SEV

SE Tax Verified

18SEV

SE Tax Verified

03BDR>

Balance Due/Overpayment Taxpayer Computer

Balance Due/Overpayment Computer

88CD1

Unallowable Code- 1

88AM1

Unallowable Amount- 1

88CD2

Unallowable Code- 2

88AM2

Unallowable Amount- 2

88CD3

Unallowable Code- 3

88AM3

Unallowable Amount- 3

63SPF

Form 8958 Spouse or Partner First Name

63SPL

Form 8958 Spouse or Partner Last Name

63SPN

Form 8958 Spouse or Partner SSN

S63NP

Section 63 Not present

Exceptions & meaning →

Correction Procedures - CCC Y on Modernized E-File (MeF) Returns¶

On all MeF returns that generate EC 260, GTSEC 02 and enter "R" in Field 02RI and transmit. Follow all EC 260 instructions before clearing.

Modernized E File (MeF) generates CCC Y to force returns filed electronically to ERS for action and review. View "Code & Edit Values" on the MeF return information screen to display the reason for the CCC Y coding.

If a taxpayer is a resident of India allow the standard deduction, if claimed, and enter "C" in the clear field if no manual refund is required.

If the dual-status return requires a manual refund see Manual Refund procedures at IRM 3.22.3.193.6.

Exceptions & meaning →

Correction Procedures - Form 1040-NR with U.S. - Canada Tax Treaty Article XXV Claim¶

CCC Y is edited by Code & Edit and generated by Modernized E-File (MeF) on Form 1040-NR when the taxpayer indicates that tax is computed in accordance with the special provision contained in Article XXV(3) of the U.S.- Canada Tax Treaty. Review Form 1040-NR for the following indicators to help identify a Canadian taxpayer claiming the benefit of Article XXV(3):

Two names are present in the entity section of the return; or

Hypothetical married filing joint tax computation using worldwide income for both taxpayers (Form 1040 or statement); or

A statement is attached indicating that a special computation permitted by the U.S.- Canada Tax Treaty has been used; or

A notation of "Article XXV" is found on the return or its attachments.

Exceptions & meaning →

Community Property Returns - Form 1040-NR¶

A taxpayer filing Form 1040-NR with community property income must report the earned income produced by the taxpayer and taxable in the U.S. on the tax return. If the taxpayer indicates on the return or attachment that a part of the taxpayer’s earned income has been allocated for tax purposes to the spouse under community property laws, or if the spouse’s earned income is reported on the taxpayer’s return as community property income, then SSPND 370 to Examination and attach Form 4227 and note "NRA Community Property Earned Income Split" . If the earned income hasn’t been split between the taxpayer and spouse then enter C in the Clear Field.

Exceptions & meaning →

Note:¶

Form 8958, Allocation of Tax Amounts Between Certain Individuals in Community Property States, is attached to Form 1040-NR and Section 63 is transcribed for this tax form. Refer to EC 260 in IRM 3.12.3 for Form 8958 instructions.

Exceptions & meaning →

Manual Refunds¶

READ ALL instructions in this subsection (paragraphs 1 - 6) before issuing a manual refund.

DO NOT ISSUE A MANUAL REFUND WHEN ANY OF THE FOLLOWING CONDITIONS EXIST.

Computer Condition Code "O" is edited on Form 1040-NR as instructed in, Refund Schemes.

Missing or photocopied signature. SSPND with Action Code 215 for substantiation and/or original signature. When the taxpayer replies with substantiation, issue a manual refund following procedures in (5) and (6) below.

If the taxpayer completed the Direct Deposit Section 06 of the return.

Substantiation of payments is missing (e.g., Form W-2, Form 1099, Form 8288-A, Form 1042-S, etc.)

Taxpayer indicates "same" for refund address.

When return is a Balance Due return or when taxpayer is applying their total refund amount to the next tax year (i.e., indicating a credit election to the next tax period).

Taxpayer has been assigned an IRSN. An IRSN begins with 9 and the two middle digits are other than 50-65; 70-88; 90-92; 94-99.

Exceptions & meaning →

Note:¶

For conditions a, c, d, e, f, and g above, continue processing.

Exceptions & meaning →

Note:¶

Any return hand walked by a TS liaison for Taxpayer Advocate Service (TAS) as a manual refund should be processed by an ERS Lead Tax Examiner or an experienced designated tax examiner. (Refer to EC 260 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns).

If Form 1040-NR has an address written on line 35e (TY19, line 73e) issue a manual refund if:

The return has a refund amount; and

The address on line 35e (TY19, 73e/23e) is different from the entity address; and

The entity address is foreign; or

The entity address is in the United States and the address on line 35e (TY19, 73e/23e) is foreign. A refund can’t be mailed to the address on line 35e (TY19, 73e/23e) if both addresses are within the U.S.

If Second name line is required, on a REFUND return, for any of the following conditions in a - d below see (5) and (6) below to issue a manual refund.

Decedent Returns

Returns displaying a title by the court, such as guardian, executor, agent, etc.

Minor returns (e.g., from Form 8615 or signature line) if parent's name is known.

DO NOT enter POA names as Second Name line, unless POA is being used as part of the address.

When issuing a manual refund:

Delete the amount in Field 03BDR.

Delete CCC "Y" ," L" , and "W" from ERS screen and circle CCC "Y" ," L" , and" W " on document.

Process the entire document.

When EC 370/670 generates SSPND with Action Code 341.

Exceptions & meaning →

Caution:¶

A previous math error may cause a refund to change from refund to balance due. If the underprint for Field 03BDR is a positive amount (balance due) don’t SSPND 341 or process as a manual refund.

Prepare Form 4227 notating "Manual Refund" and attach to the return.

When the record is returned from Accounting enter CCC "O" in Field 01CCC and continue processing.

Exceptions & meaning →

Short Period Tax Returns¶

A taxpayer may file a short period Form 1040-NR before December 31st of a tax year due to the date of final departure from the United States. See IRM 3.22.3.11 (6) for instructions for early filed returns.

If the beginning and ending dates above the caption area on Form 1040-NR are the same as the dates on Schedule OI, Question G, process the return as a full calendar year return as follows:

If a current year return, delete the tax period from Field 01TXP and transmit.

If a prior year return, enter the tax period using format YYYY12.

If EC 260 generates, delete CCC Y.

Refer to instructions in IRM 3.12.3, Error Resolution, Individual Tax Returns, EC 260, Short-Year Tax Returns, for correction procedures. When corresponding, use fill-in paragraph A from Exhibit 3.22.3-12 on paragraph $ of Form 13900.

Exceptions & meaning →

Error Code 261/561 - Form 8814 Tax (Section 40)¶

EC 261 generates when Form 8814 is present and Form 8814 Tax is not equal to Form 8814 Tax Computer.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 261 for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 261¶

The following fields are displayed for EC 261.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

04OTI

Other Income

03TTX

Tentative Tax

Tentative Tax Computer

40CN1

Form 8814 Name Control 1

40CT1

Form 8814 SSN 1

4001A

Form 8814 Taxable Interest 1

4001B

Form 8814 Tax-Exempt Interest 1

4002A

Form 8814 Ordinary Dividends 1

4003

Form 8814 Capital Gains 1

4004>

Form 8814 Income Computer 1

4015

Form 8814 Tax 1

Form 8814 Tax Computer 1

S41DP

Section 41 Data Present

S42DP

Section 42 Data Present

Exceptions & meaning →

Note:¶

The fields displayed for EC 561 will include a Clear Code field and 02NC> and all other fields will be the same as EC 261.

Exceptions & meaning →

Note:¶

In addition to the TPNCs listed for Error Code 261 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 261 the following TPNC is also valid for Form 1040-NR: 558 - You gave us information that changed the amount of tax you owe. (Form 1040-NR)

Exceptions & meaning →

Error Code 262/562 - Form 8814 Tax (Section 41)¶

EC 262 generates when Form 8814 is present and Form 8814 Tax is not equal to Form 8814 Tax Computer. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 262 for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 262¶

The following fields are displayed for EC 262:

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

04OTI

Other Income

03TTX

Tentative Tax

Tentative Tax Computer

41CN2

Form 8814 Name Control 2

41CT2

Form 8814 SSN 2

4101A

Form 8814 Taxable Interest 2

4101B

Form 8814 Tax Exempt Interest 2

4102A

Form 8814 Ordinary Dividends 2

4103

Form 8814 Capital Gains Distributions 2

4104>

Form 8814 Income Computer 2

4115

Form 8814 Tax 2

Form 8814 Tax Computer 2

S40DP

Section 40 Data Present

S42DP

Section 42 Data Present

Exceptions & meaning →

Note:¶

The fields displayed for EC 562 will include a Clear Code field and 02NC> and all other fields will be the same as EC 262.

Exceptions & meaning →

Note:¶

In addition to the TPNCs listed for Error Code 262 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 262 the following TPNC is also valid for Form 1040-NR: 558- You gave us information that changed the amount of tax you owe. (Form 1040-NR)

Exceptions & meaning →

Error Code 263/563 - Form 8814 Tax (Section 42)¶

EC 263 generates when Form 8814 is present and Form 8814 Tax is not equal to Form 8814 Tax Computer.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 263 for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 263¶

The following fields are displayed for EC 263.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

04OTI

Other Income

03TTX

Tentative Tax

Tentative Tax Computer

42CN3

Form 8814 Name Control 3

42CT3

Form 8814 SSN 3

4201A

Form 8814 Taxable Interest 3

4201B

Form 8814 Tax Exempt Interest 3

4202A

Form 8814 Ordinary Dividends 3

4203

Form 8814 Capital Gains Distributions 3

4204>

Form 8814 Income Computer 3

4215

Form 8814 Tax 3

Form 8814 Tax Computer 3

S40DP

Section 40 Data Present

S41DP

Section 41 Data Present

Exceptions & meaning →

Note:¶

The fields displayed for EC 563 will include a Clear Code field and 02NC> and all other fields will be the same as EC 263.

Exceptions & meaning →

Note:¶

In addition to the TPNCs listed for Error Code 263 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 263 the following TPNC is also valid for Form 1040-NR: 558 - "You gave us information that changed the amount of tax you owe" . (Form 1040-NR)

Exceptions & meaning →

Error Code 264/564 - Tax on Lump Sum Distribution Form 4972¶

EC 264 generates when Form 4972 is present and Form 4972 Tax is not equal to Form 4972 Tax Computer.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 264 for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 264¶

The following fields are displayed for EC 264.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

03TTX

Tentative Tax

Tentative Tax Computer

2806

Form 4972 Capital Gain

2811

Current Actuarial Value Amount

2812

Adjusted Taxable Amount

2818

Federal Estate Tax Amount

2830

Form 4972 Tax Taxpayer

Form 4972 Tax Computer

28TDV

Form 4972 Tax Verified

2801

Qualifying Plan Indicator

2802

Rollover Indicator

2803

Employee Benefit Indicator

2804

Five Year Member Indicator

2805A

Prior Year Distribution Indicator

2805B

Death Beneficiary Indicator

S28NP

Section 28 Not Present

Exceptions & meaning →

Exceptions & meaning →

Fields Displayed - EC 265¶

The following fields are displayed for EC 265.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01RPC

Return Processing Code

01CCC

Computer Condition Code

01EXC

Exemption Code

Exemption Verified

03DSI

Dependent Status Indicator

03TWG

Total Wages Amount

03INT

Taxable Interest

03DIV

Ordinary Dividends

03QD

Qualified Dividends

03CGL

Schedule D Profit/Loss

03INC

Taxable Income Amount

Taxable Income Amount Computer

94INV

Taxable Income Verified Amount

03TTX

Tentative Tax Amount

Tentative Tax Computer

03CGE>

Capital Gains Excess Computer

CGTAX>

Schedule D Tax

94TTV

Tentative Tax Verified

Withholding from Form(s) W-2 and 1099

Withholding from Form(s) 1042-S

Total Payments

03BDR

Balance Due/Refund

Balance Due/Overpayment Computer

03BDR>

Balance Due/Overpayment Taxpayer Computer

S12NP

Section 12 Not Present

1207

Net Short Gain or Loss

1215

Net Long-Term Gain or Loss Amount

1218

28 percent Rate Gain or Loss

1219

Unrecaptured Section 1250 Gain

S51NP

Section 51 Not Present

514E

Form 4952 Disposition of Investment Property

514G

Form 4952 Investment Income Elect

S20NP

Section 20 Not Present

2002A

Elected Farm Income Amount

2002B

Excess Net Long-Term Gain

2008

3-Year-Old Schedule J Tax

2012

2-Year-Old Schedule J Tax

2016

1-Year-Old Schedule J Tax

2017>

Gross Schedule J Computer Amount

2019

Tentative Tax From 3rd Prior Year Return Amount

2020

Tentative Tax From 2nd Prior Year Return Amount

2021

Tentative Tax From 1st Prior Year Return Amount

2023>

Schedule J Tax Computer Amount

S33NP

Section 33 Not Present

3318

Form 8615 Tax

Form 8615 Tax Computer

S28NP

Section 28 Not Present

2830

Form 4972 Tax Taxpayer

Form 4972 Tax Computer

03AF

Additional Form 8814 Filed Number

03AT

Additional Form 8814 Tax Amount

4015

Form 8814 Section 40 Tax Amount

Form 8814 Tax Computer Section 40 Amount

The taxpayer is married, and

The taxpayer has income from employment which is subject to tax in the United States under Article XV (Income from Employment),

The Form 1040 or statement with the hypothetical married filing jointly tax computation is missing from the return,

SSPND 215 and correspond selecting fill-in paragraph E from Exhibit 3.22.3-12 on Form 13900.

When computing the hypothetical Form 1040 taxable income and tentative tax, follow this guidance:

Start with the adjusted gross income (AGI) reported on the Form 1040 or similar statement.

Allow deductions for which the taxpayer and spouse would qualify if they were U.S. citizens. This includes the standard deduction. Follow taxpayer intent if the taxpayer itemizes deductions on the hypothetical Form 1040.

For TY17 and prior, allow all exemptions for which the taxpayer and spouse would qualify if they were U.S. citizens.

For TY17 and prior, if personal exemptions and itemized deductions are limited by AGI on Form 1040-NR, then use Form 1040 AGI and FS 2 to determine the AGI limitations, if any, when calculating the exemption and deduction amounts for Form 1040. Subtract these amounts from the Form 1040 AGI to determine taxable income.

If income losses for the spouse are included in worldwide income and included in the calculation of taxable income, then recalculate the AGI and taxable income on the Form 1040 statement without the spouse’s income losses. Use this amount in the tax calculation.

If the taxpayer is not married (e.g., uses Head of Household on Form 1040 or statement), then the Article XXV(3) computation is not allowed. Follow normal EC 265 correction procedures and assign TPNC 209.

Manually calculate tax on the combined taxable income (i.e., the Form 1040-NR taxable income plus the Form 1040 taxable income) using the worksheets contained in the instructions to Form 1040.

Use ERS Input Only Fields as necessary to allow the exclusion when valid.

Dual-status taxpayers can claim the Foreign Earned Income Exclusion, Housing Deduction, and Housing Exclusion on the Form 1040 portion of their income by using a valid Form 2555. Income earned during the Form 1040-NR period may not be excluded with Form 2555.

Caution must be used when working dual-status returns when the Form 1040-NR is the controlling document as there is no designated line on this form for claiming the exclusion and the Form 2555 can’t be transcribed. Manually verify the tax using the Foreign Earned Income Tax Worksheet and enter the tax in Field 94TTV.

Taxpayers must complete worksheets contained in the instructions to Form 1040 and Form 6251 to determine the amount of their regular and alternative minimum tax.

Exceptions & meaning →

Correction Procedures - EC 265 - All Other Forms¶

Correct coding and transcription errors and misplaced entries on displayed fields.

Follow relevant correction procedures in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 265.

Exceptions & meaning →

Correction Procedures - EC 565¶

The fields displayed in EC 565 will include a Clear Field and Field 02NC> and all other fields are the same as EC 265.

Refer to all instructions for EC 265 and refer to IRM 3.12.2, Field 02NC> Non-Compute Code, for Non-Compute information.

Exceptions & meaning →

Caution:¶

EC 265 includes instructions for using Field 94TTV to verify tentative tax if specific conditions are present (e.g., Capital Gains Excess on Form 1040 with Form 2555). Follow these instructions before clearing EC 565

Correct coding and transcription errors and misplaced entries in displayed fields.

Enter C in the Clear Field, if there are no corrections.

Exceptions & meaning →

Allowable Taxpayer Notice Codes EC 265¶

The following TPNCs are used for EC 265.

TPNC

Literal

Any previously assigned TPNC

100

101

We recomputed your tax using FSC 1.

102

We recomputed your tax using FSC 2 (Form 1040)

103

We recomputed your tax using FSC 3.

104

We recomputed your tax using FSC 4

105

We refigured your tax using the qualified surviving spouse filing status based on the information you reported (Form 1040)

106

We recomputed your tax using the FSC 2. You can use FSC 5 for the following 2 years after spouse's death if you have a dependent child.

108

Your return was filed using the head of household filing status. The name of the dependent that qualifies you for the head of household filing status was not present. (Form 1040)

109

We recomputed your tax using FSC 6. We considered your spouse as a dependent (spouse only dependent claimed and no income).

111

Your return was converted to a Form 1040.

176

Transferred AGI from page 1 to page 2 incorrectly.

202

You can't claim an exemption for yourself when you can be claimed as a dependent on another person's return.

208

We changed the amount of taxable income because there was an error in the subtraction of your exemption or combined standard deduction/exemption amount.

209

We changed the amount of tax shown on your return. The amount entered was incorrect based on your taxable income and filing status.

211

We recomputed your tax using the tax rates on Qualified Dividends and Capital Gains because it is generally lower than the standard rates.

212

Computed or transferred Schedule J tax incorrectly.

214

Transferred tax on Form 8615 incorrectly.

215

You don't need to file Form 8615.

216

Computed or transferred Part 1 of Form 8814 incorrectly.

217

Based on our computation of your taxable income, you don't owe any tax.

218

We computed your tax for you.

219

Added tax and Additional Tax incorrectly.

220

We recomputed your tax using the tax table, tax rate schedules, or capital gains tax computations. We were unable to accurately compute your tax on Form 8615 because of a math error found on another part of your tax return.

221

We recomputed your tax liability by subtracting the tax paid on Form 8615.

265

Subtracted credits from tax incorrectly.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

559

We refigured the tax on page 2 of your tax return using the maximum tax rate. Form 8615, Tax for Certain Children Who Have Investment Income of More Than $1,800, did not include the parent's taxable income.

560

We used the tax table or tax rate schedules to figure your tax. We considered your capital gains to be short-term because your Schedule D wasn't attached to your return.

TPNC

Literal

302

You failed to use the Foreign Earned Income Tax Worksheet or computed it incorrectly.

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

313

We changed the tax amount on your Form 1040-NR because of an error in your calculation of tax on the hypothetical married filing jointly statement you attached to your return.

321

Dual-status taxpayers cannot file a joint tax return. Based on the information on your return, you are making an election to be taxed as a resident alien for the entire tax year. We have changed your tax return accordingly.

324

We didn't allow the amount claimed for standard deduction. Dual-status taxpayer can't claim the standard deduction.

325

You combined the effectively connected income from your statement with the income on the return incorrectly.

328

We didn’t receive your answer to our request for the dates you were in the U.S. Therefore, we changed your dual status return using only Form 1040-NR. We have changed your tax return accordingly.

406

We disallowed your treaty exemption claim because you didn't reply to our request for more information. We have changed your tax return accordingly. (1040-NR)

409

We can't allow your tax treaty exemption claim. Your claim is not a valid tax treaty claim. We changed your return accordingly. (1040-NR)

418

We didn't allow the amount claimed for standard deduction when you file Form 1040-NR.

429

We refigured your tax using 30 percent (or lower treaty) rate from Schedule NEC of your Form 1040-NR.

449

We changed the amount of taxable income on line 41 of your Form 1040-NR because the exemption amount on line 40 was subtracted incorrectly from line 39.

494

We disallowed part of the tax treaty exemption on your return because you claimed more than the maximum amount.

Exceptions & meaning →

Note:¶

The above literals are abbreviated. Refer to IRM 3.12.3, Error Resolutions for complete literal for Domestic TPNCs, Exhibit 3.22.3-9 for complete literal for International TPNCs.

Exceptions & meaning →

Error Code 266/566 - Tentative Tax Form 2555¶

EC 266 generates for Form 1040 with a valid Form 2555 (Section 34/35) present when Tentative Tax Computer does not match Tentative Tax and EC 265 does not generate.

Exceptions & meaning →

Fields Displayed - EC 266¶

The following fields are displayed for EC 266:

1040

Field Title

01TXP

Tax Period

01RPC

Return Processing Code

01CCC

Computer Condition Code

01FSC

Filing Status Code

03WG

Wages

03INT

Taxable Interest

03DIV

Ordinary Dividends

03QD

Qualified Dividends

03CGL

Schedule D Profit/Loss

04OTI

Other Income Amount

03INC

Taxable Income Amount

Taxable Income Amount Computer

94INV

Taxable Income Verified Amount

03TTX

Tentative Tax Amount

Tentative Tax Computer

03CGE>

Capital Gains Excess Computer

CGTAX>

Schedule D Tax

94TTV

Tentative Tax Verified

TFIEX>

Total Foreign Income Exclusion Computer

S34NP

Section 34 Not Present

3442

Form 34 Foreign Earned Income Exclusion

3445

Form 34 Total Foreign Income/Housing Exclusion

3450

Form 34 Housing Deduction

S35NP

Section 35 Not Present

3542

Form 35 Foreign Earned Income Exclusion

3545

Form 35 Total Foreign Income/Housing Exclusion

3550

Form 35 Housing Deduction

03BDR

Balance Due Overpayment

Balance Due Overpayment Computer

The following TPNCs are used for EC 266.

TPNC

Literal

Any previously assigned TPNC

100

111

Your return was converted to a Form 1040.

302

You failed to use the Foreign Earned Income Tax Worksheet or computed it incorrectly.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

Exceptions & meaning →

Error Code 267 - Alternative Minimum Tax¶

EC 267 generates when Alternative Minimum Tax is not equal to Alternative Minimum Tax Computer.

Refer to EC 267 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 267, for invalid conditions. Refer to both IRM 3.12.3 and IRM 3.22.3 for correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 267¶

The following fields are displayed for EC 267.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01FPC

Form Processing Code

01RPC

Return Processing Code

01ACD

Audit Code

03DSI

Dependent Status Indicator

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

03TTI>

Tax Table Income Computer

03QBI

Qualified Business Income Deduction Amount

F8995 Qualified Business Income Deduction Computer

03INC

Taxable Income

Taxable Income Computer

05202

Alternative Minimum Tax

Alternative Minimum Tax Computer

S07NP

Section 07 Not Present

0701A

Total Taxes Schedule A

Schedule A Tax Computer Amount

32HMI

Certain Home Mortgage Interest (PY) (ERS only)

07LIM>

Schedule A Total Itemized Percentage Computer

0401

State Income Tax Refund

S51NP

Section 51 Not Present

514E

Disposition of Investment Income

514G

Investment income Elect

3202F

Alternative Tax Net Operating loss

3203

Form 6251 Other Adjustments Amount

3204>

Alternative Minimum Taxable Income Computer

32EX>

Alternative Minimum Tax Exemption Computer

S12NP

Section 12 Not Present

1218

28 percent Rate Gain or Loss

1219

Unrecaptured Section 1250 Gain

T-ALT>

Tax on Alternative Minimum Taxable Income Computer

3208

Form 6251 Foreign Tax Credit

T-TWO>

Tentative Minimum Tax Computer

03TTX

Tentative Tax

Tentative Tax Computer

0521A

Excess APTC Repayment Amount

0521A>

AVS APTC Repayment Computer Amount

05301

Foreign Tax Credit

Foreign Tax Credit Computer

S20DP

Section 20 Data Present

S28NP

Section 28 Not Present

2830

Form 4972 Tax

Form 4972 Tax Computer

3211V

Alternative Minimum Tax Verified

S32NP

Section 32 Not Present

S33DP

Section 33 Data Present

5714

Total Report Year Tax Change Amount

Exceptions & meaning →

Correction Procedures - EC 267 Form 1040-NR¶

Nonresident aliens are subject to Alternative Minimum Tax according to the same criteria as United States citizens and resident aliens, except that the net gain from the sale of United States Real Property is subject to a special computation. The taxpayer may annotate Real Property Interests "RPI" on line 6 of Form 6251.

For Form 1040-NR refer to the table below for special procedures.

And

Then

"RPI" is annotated at line 6 of Form 6251, or

Canadian taxpayer claims Article XXV, or

Dual-status return,

There was no previous math error,

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

"RPI" is annotated at line 6 of Form 6251,

There was a previous math error,

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

If EC 267 generates ripple the TPNC for the prior error.

Taxpayer claims Article XXV,

There was a previous math error,

Refer to lead to use Married Filing Jointly rates in recalculating Alternative Minimum Tax.

Dual-status return,

There was a previous math error,

Refer to ERS Lead Tax Examiner for calculation of Alternative Minimum Tax.

Exceptions & meaning →

Correction Procedures - EC 267 Form 1040¶

If EC 267 generates for Form 1040 refer to the table below for special procedures.

AND

Then

Dual-status return, or

Taxpayer is excluding income with Form 2555, or

Taxpayer is excluding income from Puerto Rico (IRC 933), or

Taxpayer is excluding income with Form 4563,

There was no previous math error

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Dual-status return, or

Form 2555 is attached, or

Taxpayer is excluding income from Puerto Rico (IRC 933), or

Taxpayer is excluding income with Form 4563,

There was a previous math error

Refer to lead tax examiner for calculation of Alternative Minimum Tax.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 267¶

The following TPNCs are used for EC 267.

TPNC

Literal

Any previously assigned TPNC.

100

185

"Other Miscellaneous Deductions" are subject to the 2 percent limitation.

218

We computed your tax for you.

225

We changed the amount of Alternative Minimum Tax on Page 2 of your return because Schedule J, Income Averaging for Farmers and Fishermen, is not used in the computation of Alternative Minimum Tax.

226

Computed Form 6251 line 28 Alternative Minimum Taxable Income incorrectly.

227

Figured or transferred Form 6251, Alternative Minimum Tax, incorrectly.

229

Computed Form 6251 incorrectly due to presence of Form 8844.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

TPNC

Literal

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

Exceptions & meaning →

Note:¶

The above literals are abbreviated. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, Taxpayer Notice Codes, for complete literal for Domestic TPNCs.

Exceptions & meaning →

Error Code 268 - Alternative Minimum Tax Liability¶

EC 268 generates when FPC "5" is not present, Alternative Minimum Tax Computer is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and it's inconsistent with other data that is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 268 for invalid conditions and refer to both IRM 3.12.3 and IRM 3.22.3 for correction procedures.

Exceptions & meaning →

Fields Displayed - EC 268¶

The following fields are displayed for EC 268.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01FPC

Form Processing Code

01RPC

Return Processing Code

01ACD

Audit Code

03DSI

Dependent Status Indicator

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

03TTI>

Tax Table Income Computer

03QBI

Qualified Business Income Deduction Amount

F8995 Qualified Business Income Deduction Computer

03INC

Taxable Income

Taxable Income Computer

05202

Alternative Minimum Tax

Alternative Minimum Tax Computer

S07NP

Section 07 Not Present

0701A

Total Taxes Schedule A

32HMI

Certain Home Mortgage Interest (PY) (ERS only)

07LIM>

Schedule A Total Itemized Limited Percentage Computer

0401

State Income Tax Refund

S51NP

Section 51 Not Present

514E

Disposition of Investment Income

514G

Investment Income Elect

3202F

Alternative Tax Net Operating Loss

3203

Form 6251 Other Adjustments Amount

3204>

Alternative Minimum Taxable Income Computer

32EX>

Alternative Minimum Tax Exemption Computer

S12NP

Section 12 Not Present

1218

28 percent Rate Gain or Loss

1219

Unrecaptured Section 1250 Gain

T-ALT>

Tax on Alternative Minimum Taxable Income Computer

3208

Form 6251 Foreign Tax Credit

T-TWO>

Tentative Minimum Tax Computer

03TTX

Tentative Minimum Tax

Tentative Minimum Tax Computer

0521A

Excess APTC Repayment Amount

0521A>

AVS APTC Repayment Computer Amount

05301

Foreign Tax Credit

Foreign Tax Credit Computer

S20DP

Section 20 Data Present

S28NP

Section 28 Not Present

2830

Form 4972 Tax

Form 4972 Tax Computer

3211V

Alternative Minimum Tax Verified

S32NP

Section 32 Not Present

S33DP

Section 33 Data Present

Exceptions & meaning →

Correction Procedures - EC 268¶

Enter the following codes if necessary, in Field 01RPC or Field 01FPC accordingly.

If Section 32 is present, enter "5" in Field 01FPC

If the taxpayer indicates "not liable" (or similar statement) for Alternative Minimum Tax on line 1, Schedule 2, Form 1040-NR (TY19, line 43 of Form 1040-NR), or line 1, Schedule 2 of Form 1040, or on Form 6251, enter "Z" in Field 01RPC.

Exceptions & meaning →

Note:¶

Do not enter RPC "Z" if an amount is present on line 1, Schedule 2, Form 1040-NR (TY19, line 43 of Form 1040-NR) or line 1, Schedule 2 of Form 1040.

Enter Audit Code "P" in Field 01ACD if the taxpayer

Excludes income with Form 2555

Excludes income with Form 4563

Excludes income from Puerto Rico (IRC 933)

Takes the Foreign Tax Credit (Form 1116)

Figures tax under Article XXV

Exceptions & meaning →

Exception:¶

If you have denied the exclusion from Form 2555, Form 4563 or IRC 933, do not enter Audit Code "P" . Instead SSPND 215 and correspond for a completed Form 6251.

All others, SSPND 215 and correspond for Form 6251 using Form 13900 and selecting paragraph i.

Exceptions & meaning →

The following TPNCs are used for EC 271.

TPNC

Literal

Any previously assigned TPNC.

100

205

Your SSN or name does not match the records provided by the Social Security Administration. As a result, we did not allow your personal exemption.

206

We did not allow your personal exemption for your spouse. The SSN and/or name of your spouse is missing or does not match the records provided by the Social Security Administration. (Form 1040)

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

401

We cannot allow the exemption(s) for your other dependent(s). As a nonresident alien, you are only allowed an exemption for yourself. We have adjusted your return accordingly. (Form 1040-NR)

402

We cannot allow the exemption for your other dependent(s). Residents of South Korea cannot claim an exemption for other than self, spouse or child (children) who lived with them in the United States. We have changed your tax return accordingly. (Form 1040-NR)

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

605

For one or more of your dependents the SSN or ITIN was missing or the last name doesn’t match our records or the records provided by the Social Security Administration.

762

We changed your tax family size on line 1 of Form 8962, Premium Tax Credit. We made the change because you, your spouse, or one or more of the dependents listed on your tax return has an issue with their taxpayer identification number.

784

We changed the monthly contribution amount on Form 8962, Premium Tax Credit, because you incorrectly calculated it in Part 1 - Annual and Monthly Contribution.

795

We changed the amounts on your Form 8965, Part II, to match Form 1095-A record we received from the Health Insurance Marketplace. We have adjusted your return accordingly.

Exceptions & meaning →

Error Code 272 - Form 8962 Alternative Calculation for Marriage¶

Error Code 272 generates when Tax Period is 201412 or later and the taxpayer is ineligible for Alternative Calculation for Marriage (ACM):

Field 7325 is blank, and taxpayer has entries on line 35a through line 35d or line 36a through line 36d, or

Taxpayer has an entry on line 35a or line 36a, Form 8962 and filing status is other than "2" .

See IRM 3.12.3. Error Resolution, Individual Income Tax Returns, EC 272, for screen display and correction procedures.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 272¶

The following TPNCs are used for EC 272.

TPNC

Literal

Any previously assigned TPNC.

100

205

Your SSN or name does not match the records provided by the Social Security Administration. As a result, we did not allow your personal exemption.

206

We did not allow your personal exemption for your spouse. The SSN and/or name of your spouse is missing or does not match the records provided by the Social Security Administration. (Form 1040)

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

401

We didn't allow the exemption(s) for your other dependent(s). As a nonresident alien, you are only allowed an exemption for yourself.

402

We didn't allow the exemption for your other dependent(s). Residents of South Korea cannot claim an exemption for other than self, spouse or child (children) who lived with them in the United States.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

605

For one or more of your dependents the SSN or ITIN was missing or the last name doesn’t match our records or the records provided by the Social Security Administration.

762

784

We changed the monthly contribution amount on Form 8962, Premium Tax Credit, because you incorrectly calculated it in Part 1 - Annual and Monthly Contribution.

795

We changed the amounts on your Form 8965, Part II, to match Form 1095-A record we received from the Health Insurance Marketplace. We have adjusted your return accordingly.

Exceptions & meaning →

Error Code 273 - Form 8962 Primary/Spouse ACM Monthly Contribution Differs¶

Error Code 273 generates when Tax Period is 201412 or later and the Primary/Spouse Monthly Contribution Amount differs from the computer amount for ACM Primary/Spouse Monthly Contribution. EC 273 won’t generate for Form 1040-NR since ACM is disallowed at EC 272 for FSC 3/6.

See IRM 3.12.3, Error Resolution, Individual Income Tax Returns. EC 273, for screen display and correction procedures.

Exceptions & meaning →

Error Code 274 - Form 8962 Annual/Monthly Premium Tax Credit¶

Error Code 274 generates when the Tax Period is 201412 or later and:

the taxpayer's amount for Annual Premium Tax Credit (line 11e/24) differs from the computer amount for Annual Total Premium Tax Credit, or

the taxpayer's amount for Monthly Premium Tax Credit (lines 12e - 23e and/or line 24) differs from the computer amount for Monthly Total Premium Tax Credit.

See IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 274, for the screen display of EC 274.

Exceptions & meaning →

Correction Procedures - EC 274¶

See IRM 3.12.3 for correction procedures.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 274¶

The following TPNCs are used for EC 274.

TPNC

Literal

Any previously assigned TPNC.

100

205

Your SSN or name does not match the records provided by the Social Security Administration. As a result, we did not allow your personal exemption.

206

We did not allow your personal exemption for your spouse. The SSN and/or name of your spouse is missing or does not match the records provided by the Social Security Administration.

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

401

We didn't allow the exemption(s) for your other dependent(s). As a nonresident alien, you are only allowed an exemption for yourself.

402

We didn't allow the exemption for your other dependent(s). Residents of South Korea cannot claim an exemption for other than self, spouse or child (children) who lived with them in the United States.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

605

For one or more of your dependents the SSN or ITIN was missing or the last name doesn’t match our records or the records provided by the Social Security Administration.

762

784

We changed the monthly contribution amount on Form 8962, Premium Tax Credit, because you incorrectly calculated it in Part 1 - Annual and Monthly Contribution.

786

We changed the amount of total premium tax credit on line 24 of Form 8962, Premium Tax Credit, because you incorrectly calculated either the annual or monthly section of Part II (Column e), Premium Tax Credit Claim and Reconciliation of Advance Credit.

790

We didn’t allow the amount claimed as net premium tax credit on line 24 of Form 8962, Premium Tax Credit. You’re not eligible to claim the credit because your filing status is married filing separately.

795

We changed the amounts on your Form 8965, Part II, to match Form 1095-A record we received from the Health Insurance Marketplace. We have adjusted your return accordingly.

Exceptions & meaning →

Error Code 275 - Form 8962 Advanced Premium Tax Credit Monthly Payments¶

Error Code 275 generates when Tax Period is 201412 or later and the taxpayer's amount for Annual/Monthly Premium Tax Credit (PTC) differs from computer amount for Advance PTC.

See IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 275, for screen display and correction procedures.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 275¶

The following TPNCs are used for EC 275.

TPNC

Literal

Any previously assigned TPNC.

100

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

401

We didn't allow the exemption(s) for your other dependent(s). As a nonresident alien, you are only allowed an exemption for yourself.

402

We didn't allow the exemption for your other dependent(s). Residents of South Korea cannot claim an exemption for other than self, spouse or child (children) who lived with them in the United States.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

605

For one or more of your dependents the SSN or ITIN was missing or the last name doesn’t match our records or the records provided by the Social Security Administration.

787

We changed the amount of advance premium tax credit on line 25 of Form 8962, Premium Tax Credit, because you incorrectly calculated either the annual or monthly section of Part II (Column f), Premium Tax Credit Claim and Reconciliation of Advance Credit.

795

We changed the amounts on your Form 8965, Part II, to match Form 1095-A record we received from the Health Insurance Marketplace. We have adjusted your return accordingly.

Exceptions & meaning →

Error Code 276 - Form 8962 Advance Premium Tax Credit Repayment¶

Error Code 276 generates when Tax Period is 201412 or later and the entry for Advance Premium Tax Credit (PTC) Repayment does not match Computed PTC Repayment Amount.

See IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 276, for screen display and correction procedures.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 276¶

The following TPNCs are used for EC 276.

TPNC

Literal

Any previously assigned TPNC.

100

205

Your SSN or name does not match the records provided by the Social Security Administration. As a result, we did not allow your personal exemption.

206

Your spouse’s SSN or name does not match the records provided by the Social Security Administration. As a result, we did not allow exemption.

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

401

We didn't allow the exemption(s) for your other dependent(s). As a nonresident alien, you are only allowed an exemption for yourself.

402

We didn't allow the exemption for your other dependent(s). Residents of South Korea cannot claim an exemption for other than self, spouse or child (children) who lived with them in the United States.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

605

For one or more of your dependents the SSN or ITIN was missing or the last name doesn’t match our records or the records provided by the Social Security Administration.

762

789

We changed the amount of advance premium tax credit repayment you reported on your tax return because there was an error on Form 8962, Premium Tax Credit. The error was in one of the following: Computation of Part III, Repayment of Excess Advance Payment. Transfer of that amount to your tax return.

795

We changed the amounts on your Form 8965, Part II, to match the Form 1095-A record we received from the Health Insurance Marketplace. We have adjusted your return accordingly.

Exceptions & meaning →

Error Code 277/577 - Foreign Tax Credit¶

EC 277 generates when Foreign Tax Credit is not equal to Foreign Tax Computer.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 277 for invalid conditions and refer to both IRM 3.12.3 and IRM 3.22.3 for correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 277¶

The following fields are displayed for EC 277.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

03TTX

Tentative Tax

Tentative Tax Computer

0521A

Taxpayer Advance Premium Tax Credit Repayment

0521A>

Computed APTC Repayment Amount

03TBC>

Income Tax Before Credits Computer

05301

Foreign Tax Credit

Foreign Tax Credit Computer

03TAX

Total Tax IMF

Total Tax IMF Computer

S19NP

Section 19 Not Present

Exceptions & meaning →

Note:¶

The fields displayed for EC 577 will include a Clear Code field and 02NC> and all other fields will be the same as EC 277.

Exceptions & meaning →

Correction Procedures - EC 277¶

Earned Income is salaries and wages, commissions, bonuses, professional fees and tips, and other compensation received for personal services. In certain instances, the following types of income can be considered earned income: business profits, royalties and rents.

The taxpayer can’t claim a foreign tax credit on Form 1116 for foreign tax that is allocable to amounts excluded from gross income under the foreign earned income exclusion (Form 2555), IRC 931 or IRC 933. Also, the taxpayer can’t include this excluded income in the calculation of the foreign tax credit limitation.

If the amount on line 1a, Form 1116, is the same amount on line 26, Form 2555, Code & Edit will reduce the greater of line 42 or 45 of Form 2555 from line 1a Form 1116 and edit an amount. See chart below for correction procedures:

And

Then

Taxpayer claimed an amount in Schedule 3, line 1, Form 1040 or Form 1040-NR, (TY19, line 46 of Form 1040-NR) of less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡,

Form 1116 or similar statement is NOT attached

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Taxpayer claimed an amount in Schedule 3, line 1, Form 1040 or Form 1040-NR, (TY19, line 46 of Form 1040-NR) of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Form 1116 or similar statement is NOT attached

SSPND 215.

Code & Edit "X’d" line 1a, Form 1116 and edited an amount next to line 1a, Form 1116

line 1, Schedule 3 has been "X’d" by Code & Edit

Enter the amount from line 1, Schedule 3 in Field 05301

Code & Edit "X’d" line 1a, Form 1116 and there is no amount next to line 1a, Form 1116

line 1, Schedule 3 has been "X’d" by Code & Edit

Assign TPNC 312

Field 05301 is not significant,

Enter the amount from line 35, Form 1116 (Foreign Tax Credit) in Field 05301.

Exceptions & meaning →

Note:¶

If line 35 Form 1116 is blank, enter the amount from line 24 Form 1116 to Field 05301.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 277¶

The following TPNCs are used for EC 277.

TPNC

Literal

Any previously assigned TPNC

100

200

We changed your total exemption amount on page 2 of your tax return because there was an error in the: Number of exemptions provided on Lines 6a - 6d and/or Computation of your total exemption amount. (Form 1040)

230

We found an error in the addition of your alternative minimum tax to your tentative tax on page 2 of your return. (Form 1040)

231

We didn't allow part or all of the amount claimed as foreign tax credit on page 2 of your tax return. Foreign tax credit is limited to the total amount of your tentative minimum tax liability. (Form 1040)

513

We didn’t allow the amount claimed as Foreign Tax Credit on your tax return. Form 1116, Foreign Tax Credit, was incomplete or not attached to your tax return.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

TPNC

Literal

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

312

Disallowed part or all foreign tax credit. Foreign tax credit cannot be figured on income that is excluded on Form 2555/Form 2555-EZ.

Exceptions & meaning →

Note:¶

Exceptions & meaning →

Error Code 278 - Transcription in Dollars Only, Adjusted Gross Income and Child Care…¶

EC 278 generates when Form 2441 is present and not consistent with other data on the return. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 278, for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 278¶

The following fields are displayed for EC 278.

1040-NR

Field Title

Clear Code Field

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

05302

Child and Dependent Care Credit

05302>

Child and Dependent Care Credit Computer

21CCV

Child Care Credit Verified

94RCV

Refundable Child Care Credit Verified Amount

01TXP

Tax Period

Exceptions & meaning →

Error Code 279 Child and Dependent Care Credit Eligibility¶

Error Code 279 generates when either of the following occurs

Child Care Provider SSN matches the primary, secondary, or dependent TIN

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 279 and the correction procedures below for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Error Code 280/580 - Child and Dependent Care Credit¶

EC 280 generates when Child Care Credit and Child Care Credit Computer is not equal.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 280 and the correction procedures below for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 280¶

The following fields are displayed for EC 280.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01EXC

Exemption Code

94EXV

Exemption Code Verified

01RPC

Return Processing Code

01SPC

Special Processing Code

01ACD

Audit Code

02DTR

Dependent TIN Not Required

05302

Child and Dependent Care Credit

05302>

Child and Dependent Care Credit Computer

S21NP

Section 21 Not Present

21GC>

Gross Child and Dependent Care Computer

21MFS

Married Filing Separate Checkbox

21CPT

Child Care Provide TIN

21QI

Qualifying Individual Number

21CN1

Child Care Credit Dependent 1 Name Control

Child Care Credit Dependent 1 Name Control Computer

211DI

Child Care Credit Dependent 1 Disabled Indicator

21YB1>

Child Care Credit Dependent 1 NAP Date of Birth

21DD1>

Child Care Credit Dependent 1 NAP Date of Death

21NA1>

Child Care 1 NAP Access Indicator

21NR1>

Child Care 1 NAP EIF Response Indicator

21CC1>

Child Care Dependent 1 ITIN Status Code

21DS1

Child Care Credit Dependent 1 TIN

21CP1

Child Care Credit Dependent 1 Expense

21CN2

Child Care Credit Dependent 2 Name Control

Child Care Credit Dependent 2 Name Control Computer

212DI

Child Care Credit Dependent 2 Disabled Indicator

21YB2>

Child Care Credit Dependent 2 NAP Date of Birth

21DD2>

Child Care Credit Dependent 2 NAP Date of Death

21NA2>

Child Care Credit 2 NAP Access Indicator

21NR2>

Child Care Credit 2 NAP EIF Response Indicator

21CC1>

Child Care Dependent 2 ITIN Status Code

21DS2

Child Care Credit Dependent 2 TIN

21CP2

Child Care Credit Dependent 2 Expense

2103

Qualified Expenses

2104

Primary Earned Income

2105

Secondary Earned Income

2106>

Child and Dependent Care Base Computer

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

21PYE

Prior Year Expenses

Prior Year Expenses Computer

2112

Dependent Care Employer Benefits

2116

Qualified Expenses Incurred Amount (Employer)

2125

Dependent Care Exclusions

21CCV

Child Care Credit Verified

21CSR

Dependent Child Care SSN Requirement

03TTX

Tentative Tax

Tentative Tax Computer

03TBC>

Income Tax Before Credits Computer

03TAX

Total Tax IMF

Total Tax Computer

94RCV

Refundable Child Care Credit Verified

01TXP

Tax Period

Exceptions & meaning →

Note:¶

The fields displayed for EC 579 will include a Clear Code field and Field 02NC> and all other fields will be the same as EC 279.

Exceptions & meaning →

Correction Procedures - EC 280 and Form 1040 with Form 2555¶

If the taxpayer is claiming a credit for child and dependent care expenses on Form 1040 and is excluding foreign earned income, follow these instructions:

If line 4 and 5 of Form 2441 are blank, figure earned income by subtracting the amount on line 45 of Form 2555 from the earned income reported on Form 1040 for each spouse.

If the taxpayer amount in Field 05302 is less than the amount generated in Field 05302>, enter the taxpayer’s amount on line 2, Schedule 3 in Field 21CCV.

Exceptions & meaning →

Correction Procedures - EC 280 and Form 1040-NR¶

Follow the correction procedures in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 279. If a qualifying person claimed on Form 2441 was disallowed at EC 017 because the Child Care Dependent ITIN Status Code is "I" then assign TPNC 317 If the qualifying person claimed is a dependent on the return, or TPNC 646 if the qualifying person is not a dependent.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 280¶

The following TPNCs are used for EC 280.

TPNC

Literal

Any previously assigned TPNC.

100

218

We computed your tax for you.

220

Recomputed your tax using the tax table, tax rate schedules, or capital gains tax computations. We were unable to accurately compute your tax on Form 8615, due to a math error found on another part of your tax return.

230

We found an error in the addition of your alternative minimum tax to your tentative tax on page 2 of your return.

232

Computed or transferred Form 2441 incorrectly.

233

No earned income, Form 2441.

234

You failed to provide a correct Identifying Number (TIN) for your Care Provider on Form 2441. We disallowed your Credit for Child and Dependent Care Expenses accordingly. (Form 1040)

235

Since you did not include a Social Security number for your dependent(s), we did not allow your credit for Child Dependent Care.

236

Disallowed credit for prior year expenses on Form 2441. Missing dependent name, SSN or statement showing how you figured the credit.

237

Computed or transferred the Part III amount on Form 2441.

238

Disallowed credit for child and dependent care because spouse or dependent cannot be your care provider.

239

We didn’t allow the Child and Dependent Care Credit because your filing status is married filing separately.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

562

No reply, number of months as student, disabled, or looking for work.

563

No reply, Form 2441.

605

For one or more of your dependents the SSN or ITIN was missing or the last name doesn’t match our records or the records provided by the Social Security Administration.

646

We didn’t allow part or all of the amount claimed as credit for child and dependent care expenses on your tax return because one or more of the qualifying persons listed on Form 2441, Child and Dependent Care expenses, has an expired individual taxpayer identification number (ITIN).

706

We compared the Social Security numbers (SSN) shown on your tax return with records from the Social Security Administration. According to these records, the SSN shown on your tax return for you, your spouse, or one or more of the dependents belongs to a deceased person.

707

One or more of the dependents listed on your tax return who have a missing Social Security number are identified as being born and died during the tax period of the return. To claim a dependent as being born and died there must be proof of a live birth shown on an official document such as a birth certificate attached to the return. As a result, we disallowed certain credits claimed on your return.

708

One or more of the dependents listed on your tax return was born after December 31st of the tax year for the return you filed. As a result, we disallowed certain credits claimed on your return.

TPNC

Literal

312

Disallowed part or all foreign tax credit. Foreign tax credit cannot be figured on income that is excluded on Form 2555/Form 2555-EZ.

317

Each exemption on your tax return must have a valid individual taxpayer identification number (ITIN) or other valid taxpayer identification number (TIN). One or more of your dependents has an expired ITIN. As a result, we didn’t allow those exemptions on your tax return. This change may affect your taxable income, tax, or any of the following credits:

Credit for child and dependent care expenses

Child tax credit

Additional child tax credit

322

The individual taxpayer identification number (ITIN) for one or more of your dependents has expired. As a result, we disallowed certain credits claimed on your return. This change may affect credit for child and dependent care expenses and credit for other dependents. (Form 1040-NR)

422

Each dependent listed on your tax return must have a valid Social Security number (SSN) or individual taxpayer identification number (ITIN). For one or more of your dependents, the SSN or ITIN was missing or the last name provided doesn’t match our records or the records provided by the Social Security Administration. As a result, we disallowed certain credits claimed on your return. (Form 1040-NR)

Exceptions & meaning →

Note:¶

Filing Status Code

01TXP

Tax Period

01RPC

Return Processing Code

01PS

Primary SSN

01PYB>

Primary Year of Birth

94PAV

Primary Age Verified

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

03TTX

Tentative Tax

Tentative Tax Computer

94TTV

Tentative Tax Verified

03TBC>

Income Tax Before Credits Computer

S54NP

Section 54 Not Present

5406A

Primary Contribution

5406B

Secondary Contribution

05304

Retirement Savings Contributions Credit

Retirement Savings Contributions Credit Computer

94RTV

Retirement Savings Contributions Credit Verified

03NRC

Total Statutory Credits

Total Statutory Credits Computer

03TAX

Total Tax IMF

Total Tax Computer

Exceptions & meaning →

Note:¶

The fields displayed for EC 586 will include a Clear Code field and 02NC> and all other fields will be the same as EC 286.

Exceptions & meaning →

Error Code 287 - TIN Validation and Eligibility of Dependents for Child Tax Credit,…¶

EC 287 generates for ERS validation of the dependents claimed for Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC) for all tax years, and for validation of the dependents claimed for Credit for Other Dependents (ODC) in TY 201812 and later and for Refundable Child (RCTC) Tax Credit in TY 202112.

Exceptions & meaning →

Note:¶

EC 287 doesn’t generate for Form 1040-SS or Form 1040-SS (sp). Instructions for TIN validation and qualified dependents are in EC 340 for these forms.

Refer to IRM 3.12.3, EC 287, for invalid conditions, and refer to both IRM 3.12.3 and IRM 3.22.3 for correction procedures.

Exceptions & meaning →

Fields Displayed - EC 287¶

The following fields are displayed FY EC 287.

1040-NR

Field Title

Clear Code

01FSC

Filing Status Code

01TXP

Tax Period

01EXC

Exemption Code

94EXV

Exemption Code Verified

01CCC

Computer Condition Code

01RPC

Returns Processing Code

01SPC

Special Processing Code

MEFII>

MeF Imperfect Return Indicator

T-DAT>

Tentative Return Due Date Computer

01PS

Primary SSN

01NA1>

NAP Access Indicator

01PIC>

Primary ITIN Status Code

01PAD>

Primary NAP TIN Assignment Date

01T6E

Child Tax Credit Under Six Total Eligible Computer Number

946EV

Child Tax Credit Under Six Total Eligible Verified Number

01TCE>

Child Tax Credit Total Eligible Computer Number

94CEV

Child Tax Credit Total Eligible Verified Number

01TDE>

Other Dependent Credit Total Eligible Computer Number

94DEV

Other Dependent Credit Eligible Verified Number

02DTR

Dependent SSN Not Required Code

02MT4

More Than 4 Dependents

02CT1

Child 1 Child Tax and Other Dependent Credit Indicator

02YB1>

Child 1 Year of Birth

02DS1

Dependent 1 SSN

02NP1>

Dependent 1 NAP Access Indicator

02DC1>

Dependent 1 ITIN Status Code

02AD1>

Dependent 1 TIN Assignment Date

02CT2

Child 2 Child Tax and Other Dependent Credit Indicator

02YB2>

Child 2 Year of Birth

02DS2

Dependent 2 SSN

02NP2>

Dependent 2 NAP Access Indicator

02DC2>

Dependent 2 ITIN Status Code

02AD2>

Dependent 2 TIN Assignment Date

02CT3

Child 3 Child Tax and Other Dependent Credit Indicator

02YB3>

Child 3 Year of Birth

02DS3

Dependent 3 SSN

02NP3>

Dependent 3 NAP Access Indicator

02DC3>

Dependent 3 ITIN Status Code

02AD3>

Dependent 3 TIN Assignment Date

02CT4

Child 4 Child Tax and Other Dependent Credit Indicator

02YB4>

Child 4 Year of Birth

02DS4

Dependent 4 SSN

02NP4>

Dependent 4 NAP Access Indicator

02DC4>

Dependent 4 ITIN Status Code

02AD4>

Dependent 4 TIN Assignment Date

03AGI

Adjusted Gross Income Amount

Adjusted Gross Income Amount Computer

EXADV>

Excess Advance Child Tax Credit Payments Computer

98PAA>

Primary NAP Advance Additional Child Tax Credit Amount

98PAN

Primary NAP Advance Additional Child Tax Credit Dependents Number

98SAA>

Secondary NAP Advance Additional Child Tax Credit Amount

98SAN>

Secondary NAP Advance Additional Child Tax Credit Dependents Number

03TBC>

Income Tax Before Credits Computer

03COD

Child and Other Dependent Credit Amount

Child and Other Dependent Credit Computer Amount

03COD>

Gross Child and Other Dependent Credit Computer

03ACT

Additional Child Tax Credit

Additional Child Tax Credit Computer Amount

03ACT>

Gross Additional Child Tax Credit Computer Amount

Exceptions & meaning →

Correction Procedures - EC 287 - Form 1040-NR¶

Correct coding and transcription errors and misplaced entries on displayed fields.

Dependents claimed for Child Tax Credit (CTC), Refundable Child Tax Credit, Additional Child Tax Credit (ACTC), and Credit for Other Dependent (ODC) are restricted based on the taxpayer’s country of residence on Form 1040-NR. Determine the country of residence using taxpayer information on Form 1040-NR as described at IRM 3.22.3.11.3. Use the following table to determine the allowable dependents based on country of residence:

Then

The taxpayer is a U.S. national or a resident of:

Canada

Mexico

India

Dependents can be claimed for CTC, ACTC, and ODC.

The taxpayer is a resident of South Korea,

Child(ren) who lived in the United States can be claimed, but not other dependents, for CTC, ACTC, and ODC.

All others, or the country of residence can’t be determined,

No dependents can be claimed for CTC, ACTC, or ODC.

Exceptions & meaning →

Correction Procedures EC 287 - Form 1040-NR TY 201812 and Later¶

Beginning with TY 2018, eligible taxpayers may claim the Child Tax Credit (CTC), the Additional Child Tax Credit (ACTC), refundable Child Tax Credit (RCTC) and the Credit for Other Dependents (ODC) for qualified dependents on Form 1040-NR. For TY22 and later and TY20 and prior CTC and ACTC is allowed only for dependents who have a Social Security number (SSN) and are under 17 years of age. For TY21 CTC, RCTC, and ACTC is allowed only for dependents who have a Social Security number (SSN) and are under 18 years of age. If a dependent claimed for CTC doesn’t have a SSN, but does have a valid ITIN, or is over 16 (17 for TY21) years of age, the computer amount for the combined Child Tax and Other Dependents Credit is calculated by disallowing CTC but allowing ODC for that dependent.

If the taxpayer checks the Child Tax Credit box for a dependent on page 1 of Form 1040-NR, the value in Field 02CT1 is "1" . If the Credit for Other Dependents box is checked, Field 02CT1 is "2" . If the taxpayer checks both boxes in error, then Field 02CT1 is transcribed as "1" . Fields 02CT2/3/4 are coded in the same way.

Before following any of the procedures below, determine if the taxpayer is allowed dependents based on country of residence using the guidance at IRM 3.22.3.216.2.

If more than 4 dependents are claimed, follow the procedures in IRM 3.12.3, EC 287 before clearing EC 287 and assigning TPNCs.

T-DAT>, the Tentative Due Date Computer, is April 18th for Doc Code 73 (Form 1040-NR with wages), and June 15th for Doc Code 72 (Form 1040-NR no wages).

Exceptions & meaning →

Exception:¶

For the current year, T-DAT> will be the approved extension date if the taxpayer filed a timely extension.

Follow these procedures when determining qualified dependents for CTC or ODC. For prior year returns use IMFOLT to check for a TC 460 on the tax year. If the TC 460 is present the TIN assignment date must be prior to the TC 460 date to be valid for the tax year.

Then

Assign this TPNC at EC 290 or EC 344 or EC 345

a) Dependents claimed for CTC or ODC are not allowed based on country of residence,

GTSEC 01 and delete the name and TIN of all dependents from fields displayed.

TPNC 412

b) Primary TIN is invalid or missing, or IRSN,

Enter RPC "O" c) ITIN Status Code for the primary in Field 01PIC> is "I" , d) TY 2022 return, Primary TIN assignment date is after April 18, 2023 e)

TY 2021 return, Primary TIN assignment date is on or before April 18, 2022.

TY 2020 return, Primary TIN assignment date is on or before May 17, 2021

TY 2019 return, Primary TIN assignment date is on or before July 15, 2020

TY 2018 return Primary TIN assignment date is on or before the date in Field T-DAT>

Exceptions & meaning →

Exception:¶

If TC 460 is present on the account the TIN is valid if assignment date is prior to TC 460 date.

Determine the total number of eligible dependents for ACTC/RCTC claimed and enter in Field 94CEV. Determine all eligible dependents under age 6 claimed for RCTC and enter in Field 946EV and total number of eligible dependents for ODC claimed and enter in Field 94DEV.

Exceptions & meaning →

Note:¶

Include the dependent with a TIN assignment date on or before the due date of the return or the TC 460 date in the above count.

TY 2021 return Primary TIN assignment date is after April 18, 2022

TY 2020 return Primary TIN assignment date is after May 17, 2021,

TY 2019 Primary TIN assignment date is after July 15, 2020,

TY 2018 Primary TIN assignment date is after the date in Field T-DAT>

TC 460 isn’t present on IMFOLT of the tax year,

TC 460 is present on IMFOLT of the tax year and TIN assignment date is after the TC 460 date, g) Dependent(s) has an expired ITIN, and is claimed for CTC, h) Dependent(s) has an expired ITIN, and is claimed for ODC, i)

TY 2021 return, Dependent TIN assignment date is on or before April 18, 2022

TY 2020 return, Dependent TIN assignment date is on or before May 17, 2021

TY 2019 return, Dependent TIN assignment date is on or before July 15, 2020

TY 2018 return Primary TIN assignment date is on or before the date in Field T-DAT>

Exceptions & meaning →

Exception:¶

If TC 460 is present on the account the TIN is valid if assignment date is prior to TC 460 date.

Exceptions & meaning →

Note:¶

Include the dependent with a TIN assignment date on or before the due date of the return or the TC 460 date in the above count.

TY 2021 return, Dependent TIN assignment date is after April 18. 2022.

TY 2020 return, Dependent TIN assignment date is after May 17, 2021

TY 2019 Dependent TIN assignment date is after July 15, 2020,

TY 2018 Primary TIN assignment date is after the date in Field T-DAT>

TC 460 isn’t present on IMFOLT of the tax year,

TC 460 is present on IMFOLT of the tax year and TIN assignment date is after the TC 460 date, k) Dependent(s) TIN is missing or invalid, l) Dependent(s) has a valid ITIN, that is not expired, and is claimed for CTC, m) Dependent(s) has a valid TIN and is over 17 years old (16 years old for TY 20 and prior), and is claimed for CTC,

TPNC 256

Exceptions & meaning →

Correction Procedures EC 287 - Form 1040-NR TY 201712 and Prior¶

Before following any of the procedures below, determine if the taxpayer is allowed dependents based on country of residence using the guidance at IRM 3.22.3.216.2.

If the taxpayer checks the Child Tax Credit box for a dependent on line 7(c) of Form 1040-NR, then the value in Field 02CT1 is "1" . Credit for Other Dependents can’t be claimed in TY 2017 and prior.

If more than 4 dependents are claimed, follow the procedures in IRM 3.12.3, EC 287 before clearing EC 287 and assigning TPNCs.

T-DAT>, the Tentative Due Date Computer, is April 18th for Doc Code 73 (Form 1040-NR with wages) for all years, and June 17th for Doc Code 72 (Form 1040-NR no wages). If the TIN assignment date in Field 01PAD> is after the date in Field T-DAT> on a prior year return, then use IMFOLT to search for a TC 460 for the tax year of the return.

Follow these procedures when determining qualified dependents for Child Tax Credit (CTC) or ACTC.

Then

Assign this TPNC when EC 290 or EC 344 or EC 345 generates

Dependent(s) claimed for CTC is not allowed based on country of residence,

GTSEC 01 and delete the name and TIN of all dependents from fields displayed.

TPNC 423

Primary TIN is invalid or missing, or IRSN,

Enter RPC "O"

TPNC 452

ITIN Status Code for the primary in Field 01PIC> is "I" ,

TPNC 318

Primary TIN assignment date is after the date in Field T-DAT>,

TC 460 isn’t present on IMFOLT of the tax year,

TPNC 495

Primary TIN assignment date is after the date in Field T-DAT>,

TC 460 is present on IMFOLT of the tax year,

TIN assignment date is after the TC 460 date,

TPNC 495

Primary TIN assignment date after the date in Field T-DAT>,

TC 460 is present on IMFOLT of the tax year, and

TIN assignment date is before the TC 460 date,

Determine the number of eligible children for CTC claimed and enter the number in Field 94CEV.

Dependent(s) has an expired ITIN,

TPNC 317

Dependent(s) TIN missing or doesn’t match the name control,

TPNC 605

Dependent(s) TIN assignment date is after the date in Field T-DAT>,

TC 460 isn’t present on IMFOLT of the tax year,

TPNC 495

Dependent(s) TIN assignment date is after the date in Field T-DAT>,

TC 460 is present on IMFOLT of the tax year, and

TIN assignment date is after the TC 460 date,

TPNC 495

Dependent(s) TIN assignment date after the date in Field T-DAT>,

TC 460 is present on IMFOLT of the tax year, and

TIN assignment date is before the TC 460 date,

If dependent(s) is 16 or under, include child(ren) in the total number of dependents eligible for CTC and enter the total in Field 94CEV.

Dependent isn’t 16 or under in age,

TPNC 251

Exceptions & meaning →

Correction Procedures EC 287 - Form 1040 With Income Exclusion¶

Taxpayers who file Form 1040 and exclude foreign earned income with Form 2555 are eligible for Refundable Child Tax Credit in TY21 only when they have checked an abode box on line 13, Form 8812. If the taxpayer does not check the abode box they aren’t eligible for Refundable Child Tax Credit (RCTC) in TY 2021 or Additional Child Tax Credit but they are eligible for Child Tax Credit. For all other tax years a taxpayer with a Form 2555 exclusion is not eligible for Additional Child Tax Credit (ACTC), but they are eligible for Child Tax Credit. Beginning in TY 2018, they may also claim Credit for Other Dependents.

Exceptions & meaning →

Exception:¶

Taxpayers excluding foreign earned income in TY 2014 and prior years are eligible for ACTC. See instructions below specific to prior year returns.

If the taxpayer is excluding foreign earned income and claiming RCTC with no abode box checked on line 13, Form 8812 or claiming ACTC, the computer underprint for Field 03ACT will be $0. Since ACTC is based on the calculation of CTC and ODC credit, the combined CTC/ODC credit amount on the return with this error may be incorrect.

Exceptions & meaning →

Caution:¶

Follow all the instructions in EC 290 before assigning TPNCs for TIN validation errors detected in EC 287.

Exceptions & meaning →

Correction Procedures EC 287 - Form 1040 TY 201812 and Later¶

Beginning with TY 2018, taxpayers may claim the Child Tax Credit (CTC), the Refundable Child Tax Credit (RCTC), the Additional Child Tax Credit (ACTC), and the Credit for Other Dependents (ODC) for qualified dependents on Form 1040. For TY21 CTC, RCTC, and ACTC is allowed only for dependents who are under 18 years of age and have a Social Security number (SSN) that was issued before the due date of the return for the tax year the CTC or ACTC is claimed. For TY22 and later and TY 20 and prior CTC and ACTC is allowed only for dependents who are under 17 years of age and have a Social Security number (SSN) that was issued before the due date of the return for the tax year the CTC or ACTC is claimed. If a dependent claimed for CTC doesn’t have a SSN, but does have a valid ITIN, or if the dependent is over 16 (17 for TY21) years of age, the computer amount for the combined Child Tax and Other Dependents Credit is calculated by disallowing CTC but allowing ODC for that dependent.

If the taxpayer checks the Child Tax Credit box for a dependent on page 1 of Form 1040, the value in Field 02CT1 is "1" . If the Credit for Other Dependents box is checked, Field 02CT1 is "2" . If the taxpayer checks both boxes in error, then Field 02CT1 is transcribed as "1" . Fields 02CT2/3/4 are coded in the same way.

If more than 4 dependents are claimed follow the procedures in IRM 3.12.3, EC 287 before clearing EC 287 and assigning TPNCs.

Follow the instructions in IRM 3.12.3, EC 287 to determine the qualified dependents for CTC or ODC.

Exceptions & meaning →

Correction Procedures EC 287 - Form 1040 TY 201712 and Prior¶

If more than 4 dependents are claimed follow the procedures in IRM 3.12.3, EC 287 before clearing EC 287 and assigning TPNCs.

Follow the instructions in IRM 3.12.3, EC 287 to determine the qualified dependents for CTC or ODC.

TY 2014 and Prior - Beginning with TY 2015, a taxpayer’s claim for ACTC is disallowed if foreign earned income is excluded with Form 2555. Prior to TY 2015, ACTC was allowable for these taxpayers with qualifying children, however computer programming sets the underprint to $0 for all tax years.

Exceptions & meaning →

The following Fields are displayed for EC 289.

1040-NR

Field Title

Clear Code

01FSC

Filing Status Code

01TXP

Tax Period

01SPC

Special Processing Code

01T6E>

Child Tax Credit Under Six Total Eligible Computer Number

01TCE>

Child Tax Credit Total Eligible Computer Number

01TDE>

Other Dependent Credit Computer Number

01EXC

Exemption Codes

94EXV

Exemption Verified

02CT1

Child Tax and Other Dependent Credit Indicator 1

02CT2

Child Tax and Other Dependent Credit Indicator 2

02CT3

Child Tax and Other Dependent Credit Indicator 3

02CT4

Child Tax and Other Dependent Credit Indicator 4

03TBC>

Income Tax Before Credits Computer

05301

Foreign Tax Credit

Foreign Tax Credit Computer

05302

Child and Dependent Care Credit

05302>

Child and Dependent Care Credit Computer

05304

Retirement Savings Contribution Credit

Retirement Savings Contribution Credit Computer

03COD

Child and Other Dependent Credit Amount

Child and Other Dependent Credit Computer Amount

0505A

Residential Clean Energy Credit

Residential Clean Energy Credit Computer Amount

0505B

Energy Efficient Home Improvement Credit Amount

Energy Efficient Home Improvement Credit Computer Amount

05ADC

Adoption Credit

05ADC>

Adoption Credit Computer

05CVC

Clean Vehicle Credit Amount (Form 8936)

05CVC>

Clean Vehicle Credit Amount Computer

05MIC

Mortgage Certificate Credit

Mortgage Certificate Credit Computer

05POC

Previously Owned Clean Vehicles Credit

05POC>

Previously Owned Clean Vehicles Credit Computer Amount

05OSC

Other Statutory Credit

05ONC

Total Other Nonrefundable Credits

03ACT

Additional Child Tax Credit

Additional Child Tax Credit Computer

Exceptions & meaning →

Error Code 291/591 - Residential Energy Credit¶

EC 291 generates when Residential Energy Credit Taxpayer does not equal Residential Energy Credit Computer.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 291 for screen displays, invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Error Code 292/592 - Energy Efficient Home Improvement Credit¶

EC 292 generates when Energy Efficient Home Improvement Credit Taxpayer does not equal Energy Efficient Home Improvement Credit.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 292 for screen displays, invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Error Code 293/593 - Mortgage Interest Credit¶

EC 293 generates when Mortgage Interest Credit is not equal to Mortgage Interest Credit Computer and a math error is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 293 for screen displays, invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 293¶

The following TPNCs are used for EC 293.

TPNC

Literal

Any previously assigned TPNC

100

111

Your return has been converted to a Form 1040.

218

We computed your tax for you.

220

We refigured your tax on your tax return using the tax table, tax rate schedules, or capital gains tax computations. Because of an error on another part of your tax return we were unable to compute your tax on Form 8615. (Form 1040-NR)

230

We found an error in the addition of your alternative minimum tax to your tentative tax on your return.

253

We changed the amount claimed as Mortgage Interest Credit because there was an error.

257

Disallowed mortgage interest credit. The amount of mortgage interest paid from Form 1098 should be reported on Schedule A.

266

We changed the total credits on your tax return. Some credits are limited to the difference between your tax before credits and tentative minimum tax from Form 6251, Alternative Minimum Tax-Individuals. The limitation to your credit was not applied or was applied incorrectly.

267

We changed total credits on your tax return. Although you were not liable for, Alternative Minimum Tax-Individuals your credits were still subject to the limitation.

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

Exceptions & meaning →

Note:¶

The above literals are abbreviated. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, Taxpayer Notice Codes for complete literal for Domestic TPNCs.

Exceptions & meaning →

Error Code 294/594 - Adoption Credit¶

EC generates when Adoption Credit Amount is not equal to Adoption Credit Computer and a math error is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 294 for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 294¶

The following fields are displayed for EC 294.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

05ADC

Adoption Credit Amount

38GC>

Gross Adoption Credit Computer Amount

05ADC>

Adoption Credit Computer

38ACV

Adoption Credit Verified Amount (PY)

38NC1

Form 8839 Adoptee Name Control-1

38YB1

Form 8839 Adoptee Year of Birth-1

38DI1

Form 8839 Adoptee Disabled Indicator-1

38TN1

Form 8839 Adoptee TIN-1

38NC2

Form 8839 Adoptee Name Control-2

38YB2

Form 8839 Adoptee Year of Birth-2

38DI2

Form 8839 Adoptee Disabled Indicator-2

38TN2

Form 8839 Adoptee TIN-2

38NC3

Form 8839 Adoptee Name Control-3

38YB3

Form 8839 Adoptee Year of Birth-3

38DI3

Form 8839 Adoptee Disabled Indicator-3

38TN3

Form 8839 Adoptee TIN-3

38PY1

Form 8839 Child 1 Prior Year Adoption Amount

38PY2

Form 8839 Child 2 Prior Year Adoption Amount

38PY3

Form 8839 Child 3 Prior Year Adoption Amount

38QE1

Form 8839 Qualified Adoption Expenses Amount-1

38QE2

Form 8839 Qualified Adoption Expenses Amount-2

38QE3

Form 8839 Qualified Adoption Expenses Amount-3

38CF

Form 8839 Carryforward Amount

38TEB

Form 8839 Total Employee Benefits Amount

38EEB

Form 8839 Employee Excluded Benefit Amount

38ETB

Form 8839 Employer Taxable Benefits Amount

38AAI

Form 8839 Additional Adoptee Indicator

01ACD

Audit Code Field

03TTX

Tentative Tax

Tentative Tax Computer

94TTV

Tentative Tax Verified

03TBC>

Income Tax Before Credits Computer

03TAX

Total Tax IMF

Total Tax Computer

S38NP

Section 38 Not Present

Exceptions & meaning →

Note:¶

The fields displayed for EC 594 will include a Clear Code field and 02NC> and all other fields will be the same as EC 294.

Exceptions & meaning →

Correction Procedures - Adoption Credit and Form 1040 with Form 2555 (EC 294)¶

TY 2016 and later - The Modified Adjusted Gross Income (MAGI) on line 7 of Form 8839, Qualified Adoption Expenses, is calculated by adding the total foreign earned income exclusion amount from Form 2555 to adjusted gross income (AGI). If the taxpayer used the amount for AGI on Form 1040, or otherwise made an error in calculating the MAGI, assign TPNC 254.

TY 2015 and prior - If the taxpayer filed a Form 2555 the computer may not be able to compute the Adoption Credit correctly. When computing Modified Adjusted Gross Income (MAGI) for line 7 of Form 8839 taxpayers are instructed to increase the amount of Form 1040 AGI by any amounts from:

Form 2555, lines 45 and 50

Form 4563, line 15.

Exceptions & meaning →

Error Code 296 - Questionable Adoption Credit¶

EC 296 generates when Adoption Credit Amount Computer is significant and other data on Form 8839 is inconsistent.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 296, for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 296¶

The following fields are displayed for EC 296.

1040-NR

Field Title

Clear Code Field

01FSC

Filing Status Code

01TXP

Tax Period

03TTX

Tentative Tax

Tentative Tax Computer

03TBC>

Income Tax Before Credits Computer

05ADC

Adoption Credit Amount

38GC>

Gross Adoption Credit Computer Amount

05ADC>

Adoption Credit Computer Amount

38ACV

Adoption Credit Verified (PY)

38NC1

Form 8839 Child 1 Name Control

38YB1

Form 8839 Child 1 Year of Birth

38DI1

Form 8839 Child 1 Disabled Indicator

38TN1

Form 8839 Child 1 SSN

38NC2

Form 8839 Child 2 Name Control

38YB2

Form 8839 Child 2 Year of Birth

38DI2

Form 8839 Child 2 Disabled Indicator

38TN2

Form 8839 Child 2 SSN

38NC3

Form 8839 Child 3 Name Control

38YB3

Form 8839 Child 3 Year of Birth

38DI3

Form 8839 Child 3 Disabled Indicator

38TN3

Form 8839 Child 3 SSN

38PY1

Form 8839 Child 1 Prior Year Adoption Amount

38PY2

Form 8839 Child 2 Prior Year Adoption Amount

38PY3

Form 8839 Child 3 Prior Year Adoption Amount

38QE1

Form 8839 Qualified Adoption Expenses Amt 1

38QE2

Form 8839 Qualified Adoption Expenses Amt 2

38QE3

Form 8839 Qualified Adoption Expenses Amt 3

38TA1

Form 8839 Child 1 Total Adoption Credit Amount

38TA2

Form 8839 Child 2 Total Adoption Credit Amount

38TA3

Form 8839 Child 3 Total Adoption Credit Amount

38TEB

Form 8839 Employer Provided Adoption Benefits Amount

38EB1

Form 8839 Child 1 Excluded Benefits

38EB2

Form 8839 Child 2 Excluded Benefits

38EB3

Form 8839 Child 3 Excluded Benefits

38EEB

Form 8839 Employer Provided Excluded Benefits Amount

38ETB

Form 8839 Employer Provided Taxable Benefits Amount

02DS1

Dependent 1 SSN

02DN1

Dependent 1 Name Control

Dependent 1 NAP Name Control

02NP1>

Dependent 1 NAP access Indicator

02DS2

Dependent 2 SSN

02DN2

Dependent 2 Name Control

Dependent 2 NAP Name Control

02NP2>

Dependent 2 NAP Access Indicator

02DS3

Dependent 3 SSN

02DN3

Dependent 3 Name Control

Dependent 3 NAP Name Control

02NP3>

Dependent 3 NAP access Indicator

02DS4

Dependent 4 SSN

02DN4

Dependent 4 Name Control

Dependent 4 NAP Name Control

02NP4>

Dependent NAP access Indicator-4

Exceptions & meaning →

Error Code 297 - Motor Vehicle Credits Form 8936¶

111

Your return has been converted to a Form 1040.

218

We computed your tax for you.

230

We found an error in the addition of your alternative minimum tax to your tentative tax on your return.

257

Disallowed mortgage interest credit. The amount of mortgage interest paid from Form 1098 should be reported on Schedule A.

307

We cannot allow the amount claimed for the Credit for the Elderly or the Disabled from Schedule R. Nonresident aliens are not eligible for this credit. (Form 1040-NR)

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

503

We changed the nonrefundable credits on your tax return because you either didn’t complete Schedule 3, Additional Credits and Payments, or you didn’t attach it to your tax return.

522

We didn’t allow the amount claimed as alternative motor vehicle credit on your tax return because Form 8910, Alternative Motor Vehicle Credit, was incomplete or not attached to your tax return.

523

We didn’t allow the amount claimed as qualified plug-in electric drive motor vehicle credit on your tax return because Form 8936, Clean Vehicle Credits, incomplete or not attached to your tax return.

524

We didn’t allow the amount claimed as qualified electric vehicle credit on your tax return because Form 8834, Qualified Electric Vehicle Credit, was incomplete or not attached to your tax return.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

572

We didn’t allow all or part of the amount claimed as Residential Energy Credits. Credit is limited to the total amount of tentative tax.

Exceptions & meaning →

Error Code 299 - Child Tax Credit and Credit for Other Dependents¶

EC 299 generates when Child Tax Credit and Credit for Other Dependents is not equal to Child Tax Credit and Other Dependent Credit Computer, and a math error is present.

Refer to IRM 3.12.3 for invalid conditions. Refer to both IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 299 and IRM 3.22.3 for correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 299¶

The following fields are displayed for EC 299.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01PS

Primary TIN

01EXC

Exemption Code

94EXV

Exemption Code Verified

01RPC

Returns Processing Code

01SPC

Special Processing Code

T-DAT>

Tentative Return Due Date Computer

01PIC>

Primary ITIN Status Code

01PAD>

Primary NAP TIN Assignment Date

01TCE>

Child Tax Credit Total Eligible Computer Number

94CEV

Child Tax Credit Total Eligible Verified Number

01TDE>

Other Dependent Credit Total Eligible Computer Number

94DEV

Other Dependent Credit Total Eligible Verified

02MT4

More Than 4 Dependents

02CT1

Child 1 Child Tax and Other Dependent Credit Indicator

02YB1>

Child 1 Year of Birth

02DS1

Dependent 1 SSN

02NP1>

Dependent 1 NAP Access Indicator

02DC1>

Dependent 1 ITIN Status Code

02AD1>

Dependent 1 TIN Assignment Date

02CT2

Child 2 Child Tax and Other Dependent Credit Indicator

02YB2>

Child 2 Year of Birth

02DS2

Dependent 2 SSN

02NP2>

Dependent 2 NAP Access Indicator

02DC2>

Dependent 2 ITIN Status Code

02AD2>

Dependent 2 TIN Assignment Date

02CT3

Child 3 Child Tax and Other Dependent Credit Indicator

02YB3>

Child 3 Year of Birth

02DS3

Dependent 3 SSN

02NP3>

Dependent 3 NAP Access Indicator

02DC3>

Dependent 3 ITIN Status Code

02AD3>

Dependent 3 TIN Assignment Date

02CT4

Child 4 Child Tax and Other Dependent Credit Indicator

02YB4>

Child 4 Year of Birth

02DS4

Dependent 4 SSN

02NP4>

Dependent 4 NAP Access Indicator

02DC4>

Dependent 4 ITIN Status Code

02AD4>

Dependent 4 TIN Assignment Date

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

03TBC>

Income Tax Before Credits Computer

03COD

Child and Other Dependent Credit Amount

Child and Other Dependent Credit Computer Amount

03COD>

Gross Child and Other Dependent Credit Computer

94CDV

Child and Other Dependent Credit Verified

S47NP

Section 47 Not Present

47NCP

Schedule 8812 Non-Taxable Combat Pay

47EI>

Additional Child Tax Credit Earned Income Computer

47SSM

Total Social Security and Medicare Taxes

Exceptions & meaning →

Correction Procedures - EC 299 - Form 1040-NR¶

Correct coding and transcription errors and misplaced entries on displayed fields.

Beginning with TY 2018, taxpayers may claim the Child Tax Credit (CTC), the Additional Child Tax Credit (ACTC) and the Credit for Other Dependents (ODC) for qualified dependents on Form 1040-NR. CTC and ACTC is allowed only for dependents who have a Social Security number (SSN).

Follow the procedures in EC 287 at IRM 3.22.3.216.2 to determine the number of qualified dependents for CTC and ODC and the errors related to TIN validation of the primary and dependents.

Exceptions & meaning →

Correction Procedures - EC 299 - Form 1040-NR TY 2018 and Later¶

Beginning with TY 2018, taxpayers may claim the Child Tax Credit (CTC), the Additional Child Tax Credit (ACTC), and the Credit for Other Dependents (ODC) for qualified dependents on Form 1040-NR. CTC and ACTC is allowed only for dependents who are under 17 (18 for TY21) years of age and have a Social Security number (SSN) that was issued before the due date of the return for the tax year the CTC or ACTC is claimed. If a dependent claimed for CTC doesn’t have an SSN, but has a valid ITIN, or is over 16 (17 for TY21) years of age, the computer amount for the combined Child Tax and Other Dependents Credit is calculated by disallowing CTC but allowing ODC for that dependent.

Exceptions & meaning →

Note:¶

: For other than TY21, maximum credit amount for a qualifying child for CTC is $2,000. For TY 2021 the maximum credit amount for a qualifying child for CTC is $3,600 for children under 6 and $3,000 for children age 6 - 17. The maximum credit amount for an eligible dependent for ODC is $500.

Exceptions & meaning →

Reminder:¶

A spouse is not eligible as a dependent for Credit for Other Dependents (ODC), and TY 2018 and later exemptions aren’t allowed to be claimed on individual tax returns (the exemption amount is $0). For these reasons, the TIN and name of the spouse is no longer included on Form 1040-NR.

If the spouse’s name is present in dependents area, Code & Edit will edit "X" to left of spouse’s name. If the Credit for Other dependents is claimed for the spouse listed in dependents area, and Code & Edit has "X’d" the spouse, assign TPNC 333

If the taxpayer checks the Child Tax Credit box for a dependent on page 1 of Form 1040-NR, the value of Field 02CT1 is "1" . If the Credit for Other Dependents box is checked, Field 02CT1 is "2" . If the taxpayer checks both boxes in error, then Field 02CT1 is transcribed as "1" . Fields 02CT2/3/4 are coded in the same way.

Follow the procedures in IRM 3.12.3, EC 290, for modified AGI limitations, earned income, and Social Security and Medicare taxes errors. Assign TPNCs as directed in the instructions for these errors.

Follow the procedures in EC 287 at IRM 3.22.3.216.2 and IRM 3.22.3.216.2.1 to determine the number of qualified dependents for CTC and ODC and errors related to TIN validation of the primary and dependents. Assign TPNCs for errors identified in EC 287 as follows:

TPNC 412 - Dependent not allowed based on country of residence

TPNC 421 - Primary TIN is invalid or missing

TPNC 323 - ITIN Status Code for Primary is “I”

TPNC 497 - Primary or Dependent TIN Assignment Date is after the return due date

TPNC 425 - Dependent is claimed for CTC but has an expired ITIN

TPNC 322 - Dependent is claimed for ODC but has an expired ITIN

TPNC 422- Dependent TIN is missing or invalid

TPNC 256 - Dependent claimed for CTC has a valid ITIN (not SSN); or dependent claimed for CTC is over 16 years of age

Exceptions & meaning →

Correction Procedures - EC 299 - Form 1040-NR TY 2017 and Prior¶

Prior to TY 2018, taxpayers can claim Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC), but not Credit for Other Dependents, for qualified dependents on Form 1040-NR.

Exceptions & meaning →

Note:¶

For TY 2017 and prior, the maximum credit amount for a qualifying child for CTC is $1,000.

Form 1040-NR may be filed only by an individual taxpayer, the Primary in Field 01PS. The Taxpayer Identification Number (TIN) for a spouse claimed as an exemption on Form 1040-NR doesn’t affect the calculation of Child Tax Credit.

On TY 2017 and prior returns, manually compute the credit and enter the correct amount in Field 94CDV prior to assigning a TPNC.

Exceptions & meaning →

Note:¶

Programming will compute Child Tax Credit based on the qualification rules for TY 2018 which includes SSN requirements, maximum credit of $2,000 per child and AGI thresholds.

Follow the procedures in IRM 3.12.3, EC 299, for AGI limitation, earned income, and Social Security/Medicare taxes errors. Assign TPNCs as directed in the instructions for these errors.

Follow the procedures in EC 287 at IRM 3.22.3.216.2 to determine the number of qualified dependents for CTC and the errors related to TIN validation of the primary and dependents. Assign TPNCs for errors identified in EC 287 as follows:

TPNC 423 - Dependent not allowed based on country of residence

TPNC 452 - Primary TIN is missing or invalid

TPNC 318 - ITIN Status Code for Primary is “I”

TPNC 495 - Primary or Dependent TIN Assignment Date is after the return due date

TPNC 317 - Dependent has an expired ITIN

TPNC 605 - Dependent TIN is missing or invalid

TPNC 251- Dependent is over 16 years of age

Exceptions & meaning →

Correction Procedure - EC 299 - Form 1040 With Income Exclusion¶

Follow the procedures in EC 287 at IRM 3.22.3.216.3 to determine the number of qualified dependents for Child Tax Credit (CTC) and Credit for Other Dependents (ODC) and to identify the errors related to TIN validation of the primary, secondary, and dependents.

Correct coding and transcription errors and misplaced entries on displayed fields.

Modified AGI Limitation with Income Exclusion. Follow instructions in IRM 3.12.3, EC 299, Field 03COD, when the number of boxes checked for CTC matches the total eligible in Field 01TCE> and the number of boxes checked for ODC matches Field 01TDE>. To determine the modified adjusted gross income (MAGI) limitation to CTC/ODC, add any of the following income exclusions on the return to adjusted gross income (Field 03AGI):

Foreign earned income exclusion from Form 2555

Puerto Rico income excluded by IRC 933

Income excluded from American Samoa by IRC 931

Programming for EC 290 computes the CTC/ODC MAGI income limitation using lines 45 and 50, Form 2555. However, a manual calculation is required to compute the limitation correctly with IRC 933 and IRC 931 income exclusions. If the computer underprint for Field 03COD differs from the taxpayer’s amount, and the dependents claimed match the eligible dependents, follow the instructions in EC 344 at IRM 3.22.3.253.3 paragraph (4) for Income Excluded under IRC 933 and the MAGI Limitation.

Taxpayers who file Form 1040 and exclude foreign earned income with Form 2555 aren’t eligible for Additional Child Tax Credit (ACTC), but they are eligible for Child Tax Credit. Beginning in TY 2018, they may also claim Credit for Other Dependents. If the taxpayer is excluding foreign earned income and claiming ACTC, the computer underprint for Field 03ACT will be $0. Since ACTC is based on the calculation of CTC and ODC credit, the taxpayer’s combined CTC/ODC amount may be incorrect if claiming ACTC in error. If ACTC is claimed, and the dependents claimed match the number of eligible dependents in 01TCE>, assign TPNC 306.

Exceptions & meaning →

Exception:¶

Taxpayers excluding foreign earned income in TY 2014 and prior years are eligible for ACTC. See instructions below.

Exceptions & meaning →

Correction Procedure - EC 299 - Form 1040 With Income Exclusion - TY 201412 and Prior¶

In TY 201412 and prior, taxpayers excluding foreign earned income may claim ACTC, but the computer underprint for Field 03ACT will be $0. Use Publication 972 Child Tax Credit Worksheet in Prior Year (PY) Job Aid 2515-014 to manually compute CTC and ACTC and enter the computed amount from the worksheet into Field 94CDV and 94ACV on Form 1040. If the taxpayer figured the credits incorrectly assign TPNC 252.

Exceptions & meaning →

Correction Procedure - EC 299 - Dual Status Returns¶

Refer to EC 287 at IRM 3.22.3.216.3 and EC 299 at IRM 3.22.3.226.3 in addition to IRM 3.12.3, EC 287 and EC 299 correction procedures.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 299¶

The allowable Taxpayer Notice Codes are as follows:

TPNC

Literal

Any previously assigned TPNC

100

218

We computed your tax for you.

230

We found an error in the addition of your alternative minimum tax to your tentative tax on page 2 of your return.

246

Disallowed all or part of your Retirement Savings Contribution Credit. The credit is not allowed if you are not at least 18 years of age at the end of the Tax Year.

247

Computed or transferred Form 8880 incorrectly.

249

We changed the amount claimed as child tax credit and credit for other dependents on your tax return because you either didn’t enter an amount or entered an incorrect amount based on the number of boxes you checked on page 1 of your tax return.

250

We didn’t allow all or part of the Child Tax Credit claimed on your return. One or more of the dependents listed on your return exceeds the age limit to be a qualifying child, or the child’s Social Security number (SSN) was missing. If you claimed the Additional Child Tax Credit, it may also be affected. The age and SSN requirements don’t apply when claiming the credit for other dependents. We changed the credit amount to include this credit.

251

Disallowed part or all of your child tax credit and/or additional child tax credit. One or more of your children exceeds the age limitation.

252

You incorrectly figured your child tax credit.

276

We changed the amount shown on Schedule 2 of your tax return as additional tax from Schedule 8812, Credits for Qualifying Children and Other Dependents, because of an error on Schedule 8812 in one of the following: The computation of Schedule 8812, did not reconcile advance Child Tax payments, transferred incorrectly.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

569

No reply, Form 8880

591

We disallowed the refundable Child Tax Credit amount claimed on your tax return because the required Schedule 8812, Credits for Qualifying Children and Other Dependents, was either incomplete or not attached to your tax return.

592

We didn’t allow the amount claimed as additional Child Tax Credit or nonrefundable Child Tax Credit on your tax return because Schedule 8812, Credits for Qualifying Children and Other Dependents, was incomplete or not attached to your tax return.

605

For one or more of your dependents the SSN or ITIN was missing or the last name doesn’t match our records or the records provided by the Social Security Administration.

606

Disallowed the exemption claimed for any dependent born after December 31 of the tax year of the return you filed.

623

We can’t allow your Refundable Child Tax Credit. According to information on Schedule 8812, Credits for Qualifying Children and Other Dependents, you did not maintain a home in the United States for 6 months or more or were not a bona fide resident of Puerto Rico. We have changed your return accordingly.

706

707

708

One or more of the dependents listed on your tax return was born after December 31st of the tax year for the return you filed. As a result, we disallowed certain credits claimed on your return.

TPNC

Literal

306

We didn’t allow the amount you claimed for Additional Child Tax Credit on your Form 1040. You’re not eligible to claim the credit because you excluded foreign earned income with Form 2555 or Form 2555-EZ. (Form 1040) (TY 2015 and later ONLY)

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

317

Child tax credit

Additional child tax credit

318

Your Individual Taxpayer Identification Number (ITIN) has expired. As a result, we disallowed certain credits on your return claimed for one or more of your dependents. This change may affect your taxable income, tax, or any of the following credits:

Credit for child and dependent care expenses

Child tax credit

Additional child tax credit

322

323

Your individual taxpayer identification number (ITIN) has expired. As a result, we disallowed certain credits claimed on your return. (Form 1040-NR)

333

We changed the amount claimed as child tax credit and credit for other dependents on your tax return. Credit for other dependents is not allowed for your spouse.

412

Your country of residence does not allow you to take exemptions for dependents. As a result, we disallowed certain credits claimed on your return. (Form 1040-NR)

413

State income tax payments must be claimed as an itemized deduction on Schedule A, Itemized Deductions. These payments can’t be subtracted from income on your tax return. If you filed a Schedule A, we changed it to include the state income tax payments. If you didn’t file a Schedule A, we allowed it as your total itemized deduction on Schedule A because it lowered your taxable income. (Form 1040-NR)

421

Your Social Security number (SSN) or individual taxpayer identification number (ITIN) was missing or the last name provided doesn’t match our records or the records provided by the Social Security Administration. As a result, we disallowed certain credits claimed on your return.(Form 1040-NR)

422

423

Disallowed child tax credit because your country of residence does not allow you to take exemptions for dependents. (Form 1040-NR)

425

We didn’t allow all or part of the amount claimed for child tax credit or additional child tax credit. Each dependent claimed for this credit must have a valid Social Security number issued by the Social Security Administration before the due date of the tax return. (Form 1040-NR)

452

Your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) was missing or the last name provided doesn’t match our records or the records provided by the Social Security Administration. As a result, we disallowed certain credits claimed on your return. This change may affect your taxable income, tax, or any of the following credits:

Child tax credit

Additional child tax credit

465

We did not allow part or all of the amount claimed as Child Tax Credit and/or Additional Child Tax Credit on page 2 of your tax return because your dependent(s) with an Individual Taxpayer Identification Number (ITIN) did not meet the substantial presence test in Part I of your Schedule 8812, Child Tax Credit. (Form 1040-NR)

495

We didn’t allow the amount you claimed as child tax credit or additional child tax credit on your tax return because you or one or more of your dependents claimed for the credit did not have a taxpayer identification number assigned by the due date of the tax return. (Form 1040-NR)

497

You, or one or more of the dependents listed on your return, didn’t have an assigned taxpayer identification number by the due date of the tax return. As a result, we disallowed certain credits claimed on your return. (Form 1040-NR)

Exceptions & meaning →

Note:¶

Exceptions & meaning →

Error Code 300/600 - Other Statutory Credits¶

EC 300 generates when Other Statutory Credits is not equal to Other Statutory Credit Computer and a math error is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 300 for screen displays, invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Note:¶

In addition to the TPNCs listed for Error Code 300 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 300 the following TPNC is also valid for Form 1040-NR: 307 - "You cannot claim the credit for the Elderly or Disabled on a Form 1040-NR."

Exceptions & meaning →

Error Code 301- Credit for Small Employer Health Insurance Premiums, Form 8941¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 301 for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 301¶

Error Code 301 generates when the taxpayer's amount for Total Credit for Small Employer Health Insurance Premiums differs from the computer's amount.

The following fields are displayed for EC 301.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

65SSN

Identifying Number

65SHP

SHOP Checkbox

65EIN

Employment Taxes Employer Identification Number

652YR

F8941 Two Year Declaration Checkbox

6501

Number of Employees

6502

Number of Full Time Employees

6503

Average Annual Wage

6504

Health Insurance Premiums Paid

6505

Potential Total Premiums

6510

State Tax Credits and Premium Subsidies

6513

Number of Employees With Paid Premiums

6514

Full Time Paid Premiums Paid

6515

Partnership Small Employer Health Insurance Premium Credit

6516

Total Credits for Small Employer Health Insurance Premiums

Credits for Small Employer Health Insurance Section 65 Computer

6516V

Total Credit for Small Employer Health Insurance Premiums Section 65 Verified

234HJ

Small Employer Health Insurance Premiums Credit

23TOT

Total Additional Business Credit Amount

2236

Net Allowable General Business Credit Amount

22GC>

Gross General Business Credit Computer

05GBC>

General Business Credit Computer

S22NP

Section 22 Not Present

S23NP

Section 23 Not Present

S65NP

Section 65 Not Present

Exceptions & meaning →

Error Code 302/602 - Form 8936, Part II and Part V¶

Error Code 302 generates when Section 23 is present, Form 8936 Part II credit (Field 231YJ) does not equal the computer amount, or Form 8936 Part V credit (Field 231AA) does not equal the computer amount and a math error is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 302 for screen displays, invalid conditions, correction procedures, and allowable TPNCs.

Exceptions & meaning →

Error Code 303 - General Business Credit¶

EC 303 generates when General Business Credit is not equal to General Business Credit Computer and a math error is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 303 for screen displays, invalid conditions, correction procedures, and allowable TPNCs.

Exceptions & meaning →

Note:¶

In addition to the TPNCs listed in IRM 3.12.3, TPNC 424 is also valid for Form 1040-NR if the taxpayer claimed Education Credits.

Exceptions & meaning →

Error Code 308/608 - Credit for Prior Year Minimum Tax (Form 8801)¶

EC 308 generates when Prior Year Minimum Tax is not equal to Prior Year Minimum Tax Computer and a math error is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 308 for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 308¶

The following fields are displayed for EC 308.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01RPC

Return Processing Code

01ACD

Audit Code Field

03TTX

Tentative Tax

Tentative Tax Computer

03TBC>

Income Tax Before Credits Computer

05PYM

Credit for Prior Year Minimum Tax

Credit for Prior Year Minimum Tax Computer

03NRC

Total Statutory Credits

Total Statutory Credits Computer

94NRV

Total Statutory Credits Verified

03TAX

Total Tax IMF

Total Tax IMF Computer

T-TWO>

Tentative Alternative Minimum Tax Computer

Exceptions & meaning →

Note:¶

The fields displayed for EC 608 will include a Clear Code field and 02NC> and all other fields will be the same as EC 308.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 308¶

The following TPNCs are used for EC 308.

TPNC

Literal

Any previously assigned TPNC.

100

218

We computed your tax for you.

230

We found an error in the addition of your alternative minimum tax to your tentative tax on your return.

266

You figured your credits incorrectly. Either you completed your credit schedule incorrectly, or incorrectly applied the limit from Form 6251 to your credit.

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

558

You gave us information that changed your refund or the amount of tax you owe.

Exceptions & meaning →

Note:¶

The above literals are abbreviated. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, Taxpayer Notice Codes for complete literal for Domestic TPNCs, Exhibit 3.22.3-9 for complete literal for International TPNCs.

Exceptions & meaning →

Error Code 310/610 - Total Statutory Credits¶

EC 310 generates when Total Statutory Credits is not equal to Total Statutory Credits Computer and a math error is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, Error Code 310/610 — Total Statutory Credits for invalid conditions and refer to both IRM 3.12.3 and IRM 3.22.3 for correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 310¶

The following fields are displayed for EC 310.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01RPC

Return Processing Code

01ACD

Audit Code

03TTX

Tentative Tax

Tentative Tax Computer

05202

Alternative Minimum Tax

Alternative Minimum Tax Computer

0521A

Taxpayer Advance Premium Tax Credit Repayment

0521A>

Computed APTC Repayment Amount

03TBC>

Income Tax Before Credits Computer

05301

Foreign Tax Credit

Foreign Tax Credit Computer

05302

Child Care Credit

21GC>

Gross Child Credit Computer

05302>

Child Care Credit Computer

05304

Retirement Savings Contribution Credit

Retirement Savings Contribution Computer

03COD

Child and Other Dependent Credit Amount

Child and Other Dependent Tax Credit Computer

0505A

Residential Clean Energy Credit

Residential Clean Energy Credit Computer

0505B

Energy Efficient Home Improvement Credit

Energy Efficient Home Improvement Credit Computer

05GBC

General Business Credit

22GC>

Gross General Business Credit Computer

05GBC>

General Business Credit Computer

05PYM

Credit for Prior Year Minimum Tax

Credit for Prior Year Minimum Tax Computer

05ADC

Adoption Credit

38GC>

Gross Adoption Credit Computer

05ADC>

Adoption Credit Computer

05CVC

Clean Vehicle Credit Amount

05CVC>

Clean Vehicle Credit Amount Computer

05MIC

Mortgage Certificate Credit

Mortgage Certificate Credit Computer

05POC

Previously Owned Clean Vehicles Credit

05POC>

Previously Owned Clean Vehicles Credit Computer

05OSC

Other Statutory Credit

Other Statutory Credit Computer

05ONC

Total Other Nonrefundable Credits

03NRC

Total Statutory Credit

Total Statutory Credits Computer

94NRV

Statutory Credits Verified

03TAX

Total Tax IMF

Total Tax IMF Computer

S19NP

Section 19 Not Present

Exceptions & meaning →

Note:¶

The fields displayed for EC 610 will include a Clear Code field and Field 02NC> and all other fields will be the same as EC 310.

Exceptions & meaning →

Correction Procedures - EC 310 Form 1040¶

The Foreign Tax Credit is reported on Schedule 3, line 1 of TY 2019 and later Form 1040 and Schedule 3, line 48, of TY 2018 Form 1040 (Field 05301), and on line 48 of Form 1040 in prior years.

The taxpayer can’t claim a foreign tax credit on Form 1116 for foreign tax that is allocable to amounts excluded from gross income under the foreign earned income exclusion (Form 2555. Also, the taxpayer can’t include this excluded income in the calculation of the foreign tax credit limitation. See chart below for correction procedures:

If Form 1116 or similar statement is attached and

Then

The amount claimed is less than $600,

Accept the taxpayer's entry.

Code & Edit "X’d" Schedule 3, line 1, Form 1040 and adjusted line 1a Form 1116,

Manually compute Field 05301.

If EC regenerates, assign TPNC 312

The amount in line 1a, Form 1116 is equal to line 26 Form 2555,

Manually compute Field 05301.

If EC regenerates, assign TPNC 312

Field 05301 is not significant,

Enter the amount from line 35, Form 1116 (Foreign Tax Credit) in Field 05301.

Exceptions & meaning →

Note:¶

If line 35 Form 1116 is blank, enter the amount from line 24 Form 1116 to Field 05301.

IRC 901 - Taxpayers aren’t allowed a credit for foreign taxes paid or accrued to the countries listed below on income attributable to the period when IRC 901(j) applies to these countries:

Country

Starting Date

Ending Date

Iran

January 1, 1987

Still in Effect

North Korea

January 1, 1987

Still in Effect

Sudan

February 12, 1994

Still in Effect

Syria

January 1, 1987

Still in Effect

If the taxpayer claims a foreign tax credit for taxes paid or accrued to one of the countries above on income from the periods listed, follow the instructions below:

Then

Code & Edit "X'd" the amount claimed for foreign tax credit on Schedule 3, line 1 because the foreign taxes were paid or accrued to one of the countries listed above,

Assign TPNC 335

EC 310 re-generates for another reason and it can be determined that the foreign taxes were paid or accrued to one of the countries listed above,

Delete the entry in Field 05301.

Assign TPNC 335

Exceptions & meaning →

Correction Procedures - EC 310 Form 1040-NR¶

Follow the instructions in the chart below:

Then

Code & Edit "X'd" the amount claimed for foreign tax credit on line 1, Schedule 3 (TY19, line 46, Form 1040-NR) because the foreign taxes were paid or accrued to one of the countries listed in IRM 3.22.3.232.2,

Assign TPNC 335

EC 310 re-generates for another reason and it can be determined that the foreign taxes were paid or accrued to one of the countries listed in IRM 3.22.3.232.2,

Delete the entry in Field 05301.

Assign TPNC 335

Exceptions & meaning →

Caution:¶

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 310¶

The following TPNCs are used for EC 310.

TPNC

Literal

Any previously assigned TPNC.

100

111

Your return has been converted to a Form 1040.

218

We computed your tax for you.

230

We changed the amount of tax on your tax return because there was an error in the addition of your tax, alternative minimum tax and advance premium tax credit repayment.

242

Adjusted Education credit - missing or invalid SSN; FSC 3; not an exemption. (Form 1040)

246

Disallowed all or part of your Retirement Savings Contribution Credit. The credit is not allowed if you are not at least 18 years of age at the end of the Tax Year.

247

Computed or transferred Form 8880 incorrectly.

253

We changed the amount claimed as Mortgage Interest Credit on your tax return because there was an error on Form 8396 or transfer error.

254

We changed the amount claimed as adoption credit on your tax return because there was an error on Form 8839, Qualified Adoption Expenses. The error was in the:

Computation of the credit on Form 8839 and/or

Transfer of that amount to your tax return.

257

Disallowed the amount claimed as mortgage interest credit. The amount of mortgage interest paid from Form 1098 should be reported on Schedule A.

264

We found an error in the addition of your credits on your tax return.

266

You figured your credits incorrectly. Either you completed your credit schedule incorrectly, or incorrectly applied the limit from Form 6251 to your credit.

267

Your credits are limited by the Alternative Minimum Tax. You aren't liable for this tax, but the Alternative Minimum Tax computation on Form 6251 limits your credits.

503

We changed the nonrefundable credits on your tax return because you either didn’t complete Schedule 3, Additional Credits and Payments, or you didn’t attach it to your tax return.

513

We didn’t allow the amount claimed as Foreign Tax Credit on your tax return. Form 1116, Foreign Tax Credit, was incomplete or not attached to your tax return

522

We didn’t allow the amount claimed as alternative motor vehicle credit on your tax return because Form 8910, Alternative Motor Vehicle Credit, was incomplete or not attached to your tax return.

523

524

We didn’t allow the amount claimed as qualified electric vehicle credit on your tax return because Form 8834, Qualified Electric Vehicle Credit, was incomplete or not attached to your tax return.

527

We changed the amount claimed as qualified plug-in electric drive motor vehicle credit on Form 3800, General Business Credit. You figured the credit incorrectly or transferred it incorrectly from Form 8936, Clean Vehicle Credits, to Part III of Form 3800.

528

We changed the amount claimed as qualified electric vehicle credit on Form 3800, General Business Credit. You figured Form 8834, Qualified Electric Vehicle Credit, incorrectly or transferred the credit incorrectly from Form 8834 to Part III of Form 3800.

558

You gave us information that changed your refund or the amount of tax you owe.

567

We didn’t allow the amount claimed as a credit on your Form 1040. Form 5695, Residential Energy Credit was either incomplete or not attached to your tax return.

753

We changed the amount claimed as Credit for Small Employer Health Insurance Premiums on Form 3800, General Business Credit. The error was in figuring or transferring the total from Form 8941, Credit for Small Employer Health Insurance Premiums to Form 3800, General Business Credit

754

We didn’t allow the amount claimed as Credit for Small Employer Health Insurance Premiums on Form 3800, General Business Credits because the supporting Form 8941 Credit for Small Employer Health Insurance premiums was incomplete or not attached to your tax return.

781

We changed the amount of total statutory credits on your tax return because there was an error in the:

Computation of the credit and/or

Transfer of the amount to your tax return.

800

We didn't allow the amount you claimed as Credit for Small Employer Health Insurance Premiums on your tax return. You're not eligible to claim the credit based on your response to the questions on Form 8941, line A and/or line C.

TPNC

Literal

307

We cannot allow the Elderly and Disabled credit from Schedule R on a Form 1040-NR. We have adjusted your return accordingly.

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

312

Disallowed part or all foreign tax credit. Foreign tax credit cannot be figured on income that is excluded on Form 2555/Form 2555-EZ.

335

We did not allow the amount claimed as foreign tax credit because the foreign taxes were paid or accrued to a country to which special rules under Rev. Rul. 2005-3, Rev. Rul. 2016-8, and/or Rev. Rul. 901(j) apply.

424

We cannot allow the amount you claimed for education credit. Nonresident aliens are not eligible for this credit.

Exceptions & meaning →

Note:¶

Exceptions & meaning →

Error Code 311 - Not Effectively Connected Income (NEC)¶

EC 311 generates when Document Code is 72 or 73 and Tax on Income Not Effectively Connected is not equal to Tax on Income Not Effectively Connected Computer and a math error is present.

Exceptions & meaning →

Fields Displayed-Error Code 311¶

The following fields are displayed for Error Code 311.

1040-NR

Field Title

01SPC

Special Processing Code

03TNC

Tax on Income Not Effectively Connected

Tax on Income Not Effectively Connected Computer

S46NP

Section 46 Not Present

46TR1

Tax Rate Income Taxpayer Percentage 1

46TR2

Tax Rate Income Taxpayer Percentage 2

4613A

Ten Percent Taxable Income Amount

4613B

Fifteen Percent Taxable Income Amount

4613C

Thirty Percent Taxable Income Amount

46131

First Percentage Specified Taxable Amount

46132

Second Percentage Specified Taxable Amount

Exceptions & meaning →

Invalid Condition - EC 311¶

Error Code 311 will generate on Form 1040-NR if the taxpayer’s tax on Income Not Effectively Connected (Field 03TNC) and the Tax on Income Not Effectively Connected Computer amounts differ and a math error is present, or no Schedule NEC, Form 1040-NR is present.

Exceptions & meaning →

Correction Procedures - EC 311¶

Tax on income not effectively connected with a United States trade or business is reported on Schedule NEC of Form 1040-NR. The amount on Schedule NEC, line 15, is transferred to line 23a (TY19, line 54), of Form 1040-NR.

Correct coding and transcription errors and misplaced entries on displayed fields.

If Schedule NEC is attached, GTSEC 46 and enter all fields of data available. Income amounts are entered in dollars and cents.

If the taxpayer entered a two-digit number in the other tax rate column (d), then enter as three digits. (Example: 10 percent = 100, 25.5 percent = 255 and 1 percent is entered as 010) in Field 46TR1 and/or Field 46TR2.

Add the amounts in columns (a) through (d) on Schedule NEC and enter the totals for each column in Field 4613A, Field 4613B, Field 4613C, Field 46131, and Field 46132 as appropriate.

If Schedule NEC is missing, blank, or illegible and there is an entry on line 23a (TY19, line 54) of Form 1040-NR, SSPND 215 and correspond for Schedule NEC by selecting paragraph 1, 2, or 3 on Form 13900.

If Form SSA 1042-S or Form RRB 1042-S is attached to the return but the income isn’t reported on Schedule NEC, follow the instructions at IRM 3.22.3.233.3.3, Social Security Benefits.

If Form 1042-S for gambling winnings (income code 28 or 23) is attached to the return but the income isn’t reported on Schedule NEC, follow the instructions at IRM 3.22.3.233.3.5, Gambling.

If Form 1042-S is attached to the return but the income isn’t reported on page 1 of Form 1040-NR or Schedule 1 as taxable income or as a treaty exempt amount, or on Schedule NEC as not effectively connected (NEC) income, compare the income code on Form 1042-S to the income code chart at IRM 3.22.3.4. If the income should be reported on Schedule NEC follow the instructions below.

Exceptions & meaning →

NEC Tax Rate Validation¶

Not Effectively Connected Income (NEC) is taxed at a rate of 30 percent unless the taxpayer’s country of residence prescribes a lower rate based on a tax treaty. Go to these sections for instructions if the NEC income type is:

Pensions and annuities, see IRM 3.22.3.233.3.2

U.S. Social Security benefits, see IRM 3.22.3.233.3.3

Capital gains and losses, see IRM 3.22.3.233.3.4

Gambling income, see IRM 3.22.3.233.3.5

Alimony is not-effectively connected income and is reported on Schedule NEC, line 12, "Other" , using the applicable treaty tax rate for pensions and annuities (income code 15).

An award or prize is not effectively connected income and is reported on Schedule NEC and taxed at a rate of 30 percent for all countries of residence.

For all other types of NEC income not listed in the paragraphs above follow these correction procedures:

Exceptions & meaning →

Note:¶

If after following these corrections procedures you determine that the taxpayer’s amount reported on line 23a (TY19, line 54) is correct, but the amount edited on line 23a (TY19, line 54) by Code & Edit in red ink isn’t correct, then enter the original amount reported by the taxpayer in Field 03TNC to resolve EC 311.

Then

a) The NEC income isn’t reported on Schedule NEC,

Follow the instructions in paragraph c).

b) The taxpayer uses a rate of 30 percent,

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

c) The taxpayer uses a rate lower than 30 percent,

Determine the correct rate using Exhibit 3.22.3-3, Treaty Table 1.

d) The taxpayer uses a rate that is lower than the correct rate listed on the treaty table,

Adjust Section 46 by entering the income in the income field for the correct tax rate. (If using Field 46131/2, also enter the tax rate in Field 46TR1/2.)

If Code & Edit has edited line 23a (TY19, line 54) in red ink, enter the original amount reported by the taxpayer in Field 03TNC.

When EC 311 generates, assign TPNC 428.

e) The rate used is higher than the correct rate per the treaty table,

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Exceptions & meaning →

Example:¶

A resident of Greece attaches Form 1042-S reporting $1,000 of dividend income (income code 06), calculates tax at 15 percent on Schedule NEC, and reports $150 on line 23a (TY19, line 54). According to Exhibit 3.22.3-3, dividends received by a Greek resident are taxed at 30 percent. Delete 100000 from Field 4613B and enter in Field 4613C. Assign TPNC 428 when EC 331 generates.

If the taxpayer didn’t transfer the tax amount from Schedule NEC to line 23a (TY19, line 54), Form 1040-NR, assign TPNC 427.

Austria

Belgium

Bulgaria

Czech Republic

Denmark

Finland

France

Germany

Hungary

Iceland

Ireland

Italy

Japan

Latvia

Lithuania

Luxembourg

Netherlands

Russia

Slovak Republic

Slovenia

South Africa

Spain

Sweden

Tunisia

Turkey

Ukraine

United Kingdom (England, Northern Ireland, Scotland and Wales)

Canadian Gambling. Net gambling income of Canadian residents is reported on Schedule NEC line 10c and taxed at a rate of 30 percent. Residents of Canada are allowed to claim gambling losses up to the amount of gambling winnings. Gambling winnings and losses are reported on Schedule NEC lines 10a and 10b. If there are net gambling winnings (after offsetting the total gambling losses against their total gambling winnings), the net amount should be included on line 10c. However, if the taxpayer doesn’t indicate the exact amount of gambling losses then the gross winnings must be taxed at the rate of 30 percent.

Residents of Malta report gambling winnings on line 11 and are taxed at a rate of 10 percent.

Gambling winnings of residents of all other countries are reported on line 11 and taxed at a rate of 30 percent (except for the exempt countries listed in paragraph (2) above). Gambling losses can’t be used to offset winnings except for Canadian residents.

Follow the following correction procedures related to gambling income.

Then

a) Gambling winnings for countries that are exempt from U.S. tax are reported on Schedule 1 (TY19, page 1) of Form 1040-NR,

Delete the amount wherever reported.

Assign TPNC 448.

b) The taxpayer indicates they are a professional gambler AND is reporting their net gambling income on Schedule C,

Allow the net gambling income to be reported as effectively connected on Schedule 1 (TY19, page 1) of the Form 1040-NR.

c) A Canadian citizen did NOT indicate the amount of their losses,

Enter the Gross Gambling Winnings in Field 4613C.

If Code & Edit has edited line 23a (TY19, line 54) in red ink, enter the original amount reported by the taxpayer in Field 03TNC.

When EC 311 generates assign TPNC 447.

d) The taxpayer is a resident of Malta,

Enter the Gross Gambling Winnings in Field 4613A.

If Code & Edit has edited line 23a (TY19, line 54) in red ink, enter the taxpayer amount in Field 03TNC.

When EC 334 generates assign TPNC 428 if the taxpayer used an incorrect tax rate.

e) The taxpayer is from a non-treaty country,

Enter the Gross Gambling Winnings in Field 4613C

If Code & Edit has edited line 23a (TY19, line 54) in red ink, enter the taxpayer amount in Field 03TNC.

When EC 311 generates assign TPNC 447.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 311¶

Use the following TPNCs for EC 311.

TPNC

Literal

Any previously assigned

100

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

426

You figured your total tax incorrectly on income not effectively connected with a U.S. trade or business on Form 1040-NR, Schedule NEC. We have changed your tax return accordingly.

427

You incorrectly transferred the amount of tax on income not effectively connected with a U.S. trade or business from Form 1040-NR, Schedule NEC to page 2. We have adjusted your return accordingly.

428

You figured your tax using an incorrect tax treaty rate. We have changed your tax return accordingly.

429

You figured your tax incorrectly on Form 1040-NR, page 2, using the tax tables. We refigured your tax using the 30 percent (or lower treaty) rate from Form 1040-NR, Schedule NEC. We have changed your tax return accordingly. (Form 1040-NR)

443

You are not entitled to a refund of tax withheld on U.S. social security benefits as shown on your Form 1040-NR. As a nonresident alien, 85% of your social security benefits are taxed at 30%. We have adjusted your return accordingly.

447

Your tax rate for gambling winnings paid to nonresident aliens is 30%. We have changed your tax return accordingly.

448

Gambling winnings are exempt from tax due to a U.S. tax treaty with your country of residence. We have changed your tax return accordingly.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

Exceptions & meaning →

Note:¶

The above literals are abbreviated. See Exhibit 3.22.3-9 for complete literal for International TPNCs.

Exceptions & meaning →

Fields Displayed - EC 314¶

The following fields are displayed for EC 314.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

05SSM

Unreported Social Security and Medicare Tax for Form 4137 and 8919

Unreported Social Security and Medicare Tax for Form 4137 and 8919 Computer

05USS

Uncollected Tax on Tips

S24NP

Section 24 Not Present

24SSN

Section 24 Social Security number

2402

Total Cash and Tips Received

2403

Total Cash and Tips Reported

2405

Incidental Cash and Tips

2406

Unreported Tips Subject to Medicare Amount

2406>

Form 4137 Cash/Tips Computer

2408

Total SS Wages and Tips

24GOV

Form 4137 Government Employee Tips

2410>

Unreported SS Tips Computer

2411>

Form 4137 SS Tax Computer

24MCI>

Unreported Medicare Tips Computer

2412>

Form 4137 Medicare Tax Computer

2413>

Form 4137 Tax Computer

2413V

Form 4137 Tax Verified

S61NP

Section 61 Not Present

61SSN

SSN Section 61

6106

Total Wages Amount

6108

Total Social Security Wages Tips Amount

6113

Uncollected SST on Wages Amount

Uncollected SST on Wages Amount Computer

6113V

Uncollected SST on Wages Amount Verified

Exceptions & meaning →

Note:¶

In addition to the TPNCs listed for this Error Code in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 314 the following TPNC is also valid for Form 1040-NR: 558 - You gave us information that changed the amount of tax you owe.

Exceptions & meaning →

Error Code 316 - Form 4137 Tax Verified Present - Unreported Tips Computer Zero¶

EC 316 generates when Combined Unreported Tips SST Computer is significant and Form 4137 and Form 8919 are not significant.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 316 for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed - EC 316¶

The following fields are displayed for EC 316.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

05SSM

Unreported Social Security and Medicare Tax for Form 4137 and 8919

Unreported Social Security and Medicare Tax for Form 4137 and 8919 Computer

S24NP

Section 24 Not Present

24SSN

Form 4137 SSN-Primary

24ANM

Form 4137 A Name

24AEN

Employer A EIN

24ARC

Employer A Tips Received

24ARP

Employer A Tips Reported

24BNM

Form 4137 B Name

24BEN

Employer B EIN

24BRC

Employer B Tips Received

24BRP

Employer B Tips Reported

24CNM

Form 4137 C Name

24CEN

Employer C EIN

24CRC

Employer C Tips Received

24CRP

Employer C Tips Reported

24DNM

Form 4137 D Name

24DEN

Employer D EIN

24DRC

Employer D Tips Received

24DRP

Employer D Tips Reported

24ENM

Form 4137 E Name

24EEN

Employer E EIN

24ERC

Employer E Tips Received

24ERP

Employer E Tips Reported

2402

Total Cash and Tips Received

2403

Total Cash and Tips Reported

2405

Incidental Cash and Tips

2406

Unreported Tips Subject to Medicare Amount

2406>

Form 4137 Cash/Tips Computer

2408

Total SS Wages and Tips

24GOV

Form 4137 Government Employee Tips

2410>

Unreported SS Tips Computer

2411>

Form 4137 SS Tax Computer

24MCI>

Unreported Medicare Tips Computer

2412>

Form 4137 Medicare Tax Computer

2413>

Form 4137 Tax Computer

2413V

Form 4137 Tax Verified

S61NP

Section 61 Not Present

61SSN

SSN Section 61

6106

Total Wages Amount

6108

Total Social Security Wages Tips Amount

6113

Uncollected SST on Wages Amount

Uncollected SST on Wages Amount Computer

6113V

Uncollected SST on Wages Amount Verified

Exceptions & meaning →

Error Code 318 - Additional Tax On IRA¶

EC 318 generates when Combined Tax on Retirement Plans is not equal to Combined Tax on Retirement Plans and a math error is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 318 for screen displays, invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 322¶

The following fields are displayed for EC 322.

1040-NR

1040-SS (sp)/1040-SS

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

05HSH

Household Employment Tax Amount

Household Employment Tax Amount Computer

03TAX

Total Tax IMF

Total Tax Computer

4401

Wages Subject to SST S44 Amount

4403

Wages Subject to Medicare S44 Amount

4404>

Medicare Tax S44 Computer

4405

Total Cash Wages/Additional Medicare Tax Section 44 Amount

44NFV

Total Non FUTA Verified S44 Amount

4406

Additional Medicare Tax Section 44 amount

4406>

Additional Medicare Tax Section 44 Computer

4407

Federal Withholding

4408D

4408

Total Social Security/Medicare/Federal Taxes S44 Amount

4408E

Refundable portion of Sick and Family Leave S44 Amount

4408F

Refundable Portion of Qualified Sick and Family Wages Amount After 3/31/2021

44NFV

Total Non FUTA Verified S44 Amount

44TOT>

Total SST Medicare Tax Computer S44

44FTX

FUTA Tax S44 Amount

44FTX>

FUTA Tax Computer S44

44HTX>

Household Employment S44 Computer

4501

Wages Subject to SST S45 Amount

4503

Wages Subject to Medicare S45 Amount

4504>

Medicare Tax S45 Computer

4505

Federal Withholding

45NFV

Total Non FUTA Verified S45 Amount

4506

Additional Medicare Tax Section 45 amount

4506>

Additional Medicare Tax Section 45 Computer

4508

Total Social Security/Medicare/Federal Taxes

45DEF

Maximum Deferred S45 Amount

4508E

Refundable portion of Sick and Family Leave S45 Amount

4508F

Refundable portion of Qualified Sick and Family Wages Amount After 03-31-2021

45TOT>

Total SST Medicare Tax Computer S45

45FTX

FUTA Tax S45 Amount

45FTX>

FUTA Tax Computer S45

45HTX>

Household Employment S45 Computer

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 322 - Form 1040-SS (sp)/1040-SS¶

In addition to the TPNCs listed in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 322, the following TPNCs are valid for Form 1040-SS (sp).

TPNC

Literal

366

We changed the amount of household employment taxes on line 4 of your Form 1040-SS (sp). There was an error in the computation of one or more of the following taxes or the totaling of these amounts on Schedule H, Household Employment Taxes:

Social Security

Medicare

Federal Income Taxes

Seguro Social

Medicare

Contribuciones Sobre el Ingreso Federal (1040-SS (sp))

367

We changed the household employment taxes. The amount of cash wages reported on Schedule H, Household Employment Taxes, for your household employee was not enough to be considered taxable

Corregimos las contribuciones sobre el empleo de los empleados domésticos en su planilla contributiva. La cantidad de los sueldos de dinero en efectivo reportada en el Anexo H-PR, Contribuciones Sobre el Empleo de Empleados Domésticos, para su empleado no era suficiente para ser considerada sujeta a la contribución para propósitos de la contribución del empleo. Cualquier contribución retenida para el Seguro Social y Medicare debe devolverse a su empleado. Usted también puede que tenga que radicar la Forma W-2C en inglés, "Corrected Wage and Tax Statement" (Corregido el Sueldo y el Informe Contributivo), para corregir el Seguro Social y Medicare que usted reportó. (1040-SS (sp))

368

We changed the amount of household employment taxes because there was an error on Schedule H, Household Employment Taxes.

Corregimos la cantidad de las contribuciones sobre el empleo de los empleados domésticos en su planilla contributiva, porque hubo un error en el Anexo H-PR, Contribuciones Sobre el Empleo de Empleados Domésticos. El error estaba en:

El cómputo del total de la contribución en el Anexo H-PR y/o

La transferencia de esa cantidad a su planilla contributiva. (1040-SS (sp))

374

We changed the refund or amount you owe based on your response to our previous correspondence.

Corregimos su contribución basado en la información que usted proveyó en la contestación a nuestra correspondencia anterior.

Exceptions & meaning →

Error Code 324/624 - Schedule H Federal Unemployment Tax Act (FUTA) Tax Reported¶

EC 324 generates when both of the following conditions exist:

Combined Household Employment Taxes is not equal to Combined Household Employment Taxes Computer.

FUTA Tax (Field 44FTX) does not equal FUTA Tax Computer.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 324 for invalid conditions, correction procedures and allowable TPNCs. For Form 1040-SS (sp), assign the Spanish versions of these TPNCs which are listed in IRM 3.22.3.237.2.

Exceptions & meaning →

Fields Displayed - EC 324¶

The following fields are displayed for EC 324.

1040-NR

1040-SS (sp)/1040-SS

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

05HSH

Household Employment Tax

Household Employment Tax Amount Computer

44FIN

FUTA Indicator

44SC1

FUTA State Code - 1

44SC2

FUTA State Code - 2

44FCP

Sch H Contributions Paid State Unemployment Amount S44

44TTC

Section 44 FUTA Total Tentative Credit

44TFW

Total FUTA Wages

44BAS>

Section 44 FUTA Base Amount Computer

44MAX>

Section 44 FUTA Maximum Amount Computer

44SML>

Section 44 FUTA Smaller Amount Computer

44CR1>

Section 44 Credit Reduction State 1 Computer

44CR2>

Section 44 Credit Reduction State 2 Computer

44TCR

Section 44 Total Credit Reduction

44TCR>

Section 44 Total Credit Reduction Computer

44CA>

Section 44 FUTA Credit Allowable Computer

44FTX

Section 44 FUTA Tax

44FTX>

Section 44 FUTA Tax Computer

44FTV

Section 44 FUTA Tax Verified

45FIN

FUTA Indicator

45SC1

FUTA State Code - 1

45SC2

FUTA State Code - 2

45FCP

Section 45 FUTA Contributions Paid

45TTC

Section 45 FUTA Total Tentative Credit

45TFW

Total FUTA Wages

45BAS>

Section 45 FUTA Base Amount Computer

45MAX>

Section 44 FUTA Maximum Amount Computer

45SML>

Section 45 FUTA Smaller Amount Computer

45CR1>

Section 45 Credit Reduction State 1 Computer

45CR2>

Section 45 Credit Reduction State 2 Computer

45TCR

Section 45 Total Credit Reduction

45TCR>

Section 45 Total Credit Reduction

45CA>

Section 45 FUTA Credit Allowable Computer

45FTX

Section 45 FUTA Tax

45FTX>

Section 45 FUTA Tax Computer

45FTV

Section 45 FUTA Tax Verified

Exceptions & meaning →

Note:¶

The fields displayed for EC 624 will include a Clear Code field and Field 02NC> and all other fields will be the same as EC 324.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 324 - Form 1040-SS (sp)/Form 1040-SS¶

In addition to the TPNCs listed in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 324, the following TPNCs are valid for Form 1040-SS (sp).

TPNC

Literal

367

We changed the household employment taxes. The amount of cash wages reported on Schedule H, Household Employment Taxes, for your household employee was not enough to be considered taxable

368

We changed the amount of household employment taxes because there was an error on Schedule H, Household Employment Taxes.

El cómputo del total de la contribución en el Anexo H-PR y/o

La transferencia de esa cantidad a su planilla contributiva. (1040-SS (sp))

374

We changed the refund or amount you owe based on your response to our previous correspondence.

Corregimos su contribución basado en la información que usted proveyó en la contestación a nuestra correspondencia anterior.

Exceptions & meaning →

Error Code 326/626 - Schedule H Net Tax¶

EC 326 generates when both of the following conditions exist:

Combined Household Employment Taxes is not equal to Combined Household Employment Taxes Computer.

The difference is not attributable to Error Code 322 or 324.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 326 for invalid conditions, correction procedures and allowable TPNCs. For Form 1040-SS (sp), assign the Spanish versions of these TPNCs which are listed in IRM 3.22.3.239.2.

Exceptions & meaning →

Fields Displayed - EC 326¶

The following fields are displayed for EC 326.

1040-NR

1040-SS (sp)/1040-SS

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

05HSH

Household Employment Taxes

Household Employment Taxes Computer

S44NP

Section 44 Not Present

4408D

Total Social Security/Medicare/Federal Taxes

44TOT>

Sch H Total SST Medicare Tax Computer S44

44FTX

Section 44 FUTA Tax

44FTX>

Section 44 FUTA Tax Computer

44HTX>

Section 44 Household Employment Taxes Computer

44CR1>

Schedule H Reduction State 1 Computer

44CR2>

Schedule H Reduction State 2 Computer

44CR3>

Schedule H Reduction State 3 Computer

44CR4>

Schedule H Reduction State 4 Computer

44CR5>

Schedule H Reduction State 5 Computer Section 44 Present/Not Present

S45NP

Section 45 Not Present

4508D

Section 45 Total Social Security/Medicare/Federal Taxes

45TOT>

Sch H Total SST Medicare Tax Computer S45

45FTX

Section 45 FUTA Tax

45FTX>

Section 45 FUTA Tax Computer

45HTX>

Section 45 Household Employment Taxes Computer

45CR1>

Schedule H Reduction State 1 Computer

45CR2>

Schedule H Reduction State 2 Computer

45CR3>

Schedule H Reduction State 3 Computer

45CR4>

Schedule H Reduction State 4 Computer

45CR5>

Schedule H Reduction State 5 Computer

Exceptions & meaning →

Note:¶

The fields displayed for EC 626 will include a Clear Code field and Field 02NC> and all other fields will be the same as EC 326.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 326 - Form 1040-SS (sp)¶

In addition to the TPNCs listed in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 326, the following TPNCs are valid for Form 1040-SS (sp).

TPNC

Literal

367

We changed the household employment taxes. The amount of cash wages reported on Schedule H, Household Employment Taxes, for your household employee was not enough to be considered taxable

368

We changed the amount of household employment taxes because there was an error on Schedule H, Household Employment Taxes.

El cómputo del total de la contribución en el Anexo H-PR y/o

La transferencia de esa cantidad a su planilla contributiva. (1040-SS (sp))

374

We changed the refund or amount you owe based on your response to our previous correspondence.

Corregimos su contribución basado en la información que usted proveyó en la contestación a nuestra correspondencia anterior.

Exceptions & meaning →

Error Code 327- Schedule H Tax With No Income¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 327 for screen display, invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Error Code 328 - Repayment of the First-Time Homebuyer's Credit Form 5405 required on…¶

EC 328 generates when:

A return other than Form 1040 is filed

The NAP shows a repayment requirement for the First-Time Homebuyer Credit AND

First Time Homebuyer Credit Repayment Amount is not significant.

Exceptions & meaning →

Fields Displayed - EC 328¶

The following fields are displayed for EC 328.

1040-NR

1040-SS (sp)/1040-SS

Field Title

Clear Code

02RI

Revalidation Indicator

01TXP

Tax Period

01FSC

Filing Status Code

01CCC

Computer Condition Code

01RPC

Return Processing Code

01SPC

Special Processing Code

01PS

Primary TIN

01PNC

Primary Name Control

NAP EIF Name Control Underprint

01SS

Secondary TIN

01SNC

Secondary Name Control

NAP EIF Secondary Name Control

05FHB

First Time Homebuyer Credit Repayment Amount

Combined First Time Homebuyer Credit Repayment Computer

03TAX

Total Tax IMF

Total Tax IMF Computer

PNFH>

Primary NAP First-Time Homebuyer Credit

PNRI>

Primary NAP FTHBC Repayment Installment

58SSN

Section 58 Social Security number

5803

Section 58 Disposition Code

5808

Section 58 Homebuyer Credit Repayment

58FRC>

Section 58 Homebuyer Credit Repayment Computer

F5405 Homebuyer Credit Repayment S58 Computer

SNFH>

Secondary NAP First Time Homebuyer Credit Amount

SNRI>

Secondary NAP First Time Homebuyer Credit Repayment Installment

Secondary NAP Duplicate Homebuyer Credit Indicator

F5405 Homebuyer Credit Repayment S59 Computer

S58NP

S58NP/ S59NP

Section 58/59 Not Present

Exceptions & meaning →

Field PNRI>/SNRI> - FTHBC Primary/Secondary NAP Repayment Installment¶

Taxpayers who claimed the First-Time Homebuyer Credit on their 2008 return for a home purchased in 2008 are required to repay the credit with annual installment payments. The required annual installment payment is 1/15 of the credit received, to be paid over 15 consecutive years. Taxpayers who claimed the credit with a joint return are considered to have received half of the credit each.

Follow correction procedures listed in IRM 3.12.3, Error Resolution, Individual Income Tax Returns. However, TPNC 348 should be issued in lieu of TPNC 648 for Form 1040-NR, Form 1040-SS (sp) and Form 1040-SS.

Exceptions & meaning →

Error Code 329 - Repayment of the First-Time Homebuyer Credit (Form 5405)¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 329 for invalid conditions and correction procedures, with these exceptions:

Assign TPNC 348 instead of TPNC 648 for Form 1040-NR, Form 1040-SS (sp), and Form 1040-SS.

Exceptions & meaning →

Fields Displayed - EC 329¶

The following fields are displayed for EC 329.

1040-NR

1040-SS (sp)/1040-SS

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01CCC

Computer Condition Code

01RPC

Return Processing Code Field

01SPC

Special Processing Code

01PS

Primary TIN

01PNC

Primary Name Control

NAP EIF Primary Name Control Underprint

01SS

Secondary TIN

01SNC

Secondary Name Control

NAP EIF Secondary Name Control

05FHB

First Time Homebuyer Credit Repayment

Combined First Time Homebuyer Credit Repayment Computer

03TAX

Total Tax IMF

Total Tax IMF Computer

58SSN

Form 5405 SSN Section 58 Number

5801

Date of Disposition of Home or Change in Status of Home

5803

Form 5405 Disposition Section 58 Code

5804

Credit Claimed Prior Years

5805

Repayment of Home Purchased in 2008

5807

Gain On Sale Main Home Section 58 Amount

PNFH>

Primary NAP First Time Home Buyer Credit Amount

PNRI

Primary NAP First Time Home Buyer Installment Amount

5808

Homebuyer Credit Repayment Section 58 Amount

58FRC>

Form 5405 Homebuyer Credit Repayment Section 58 Computer

5808V

Homebuyer Credit Repayment Section 58 Verified Amount

PNFH>

Primary NAP First Time Homebuyer Credit Amount

PNRI>

Primary NAP First Time Homebuyer Credit Repayment Installment

Homebuyer Credit Repayment Section 58 Amount

Form 5405 Homebuyer Credit Repayment Section 58 Computer

Homebuyer Credit Repayment Section 58 Verified Amount

Form 5405 SSN Section 58 Number

Date of Disposition of Home or Change in Status of Home

Form 5405 Disposition Section 58 Code

Credit Claimed Prior Years

Repayment of Home Purchased in 2008

Gain On Sale Main Home Section 58 Amount

SNFH>

Secondary NAP First Time Homebuyer Credit Amount

SNRI>

Secondary NAP First Time Homebuyer Credit Repayment Installment

Homebuyer Credit Repayment Section 59 Amount

Form 5405 Homebuyer Credit Repayment Section 59 Computer

Homebuyer Credit Repayment Section 59 Verified Amount

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 329¶

The following TPNCs are valid for Form 1040-NR, Form 1040-SS (sp) and Form 1040-SS as indicated.

TPNC

Literal

Any previously assigned TPNC

100

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

348

According to our records an installment payment is due for the First-Time Homebuyer Credit received with your 2008 tax return. You did not report the payment and did not include it in tax. We have calculated the required payment and added it to your tax return. (Form 1040-NR, Form 1040-SS)

Según nuestros registros, se debe un plazo de reintegro por el Crédito por la Compra de la Primera Vivienda que recibió usted al presentar su declaración de impuestos para el año 2008. Este plazo de reintegro se debió de haber añadido como un aumento al impuesto en el Formulario 1040, la declaración personal de impuestos federales. Nosotros hemos calculado el plazo de reintegro adeudado y ajustamos su impuesto total en la línea 6 de su Formulario 1040-SS (sp). (Form 1040-SS (sp))

649

We changed your installment payment of the First-Time Homebuyer Credit on your return. We changed the payment because of one of the following:

You made an error in the computation of the payment owed.

You transferred the payment incorrectly from Form 5405 to your tax return.

You reported a disposition or change in the use of your main home that indicates you are not required to repay the First-Time Homebuyer Credit.

According to our records, you are not required to repay the credit.

A repayment of the credit is not required from a taxpayer who died in the tax year of the return.

Exceptions & meaning →

Error Code 330 - Form 8889 Tax¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 330 for invalid conditions, correction procedures and allowable TPNCs.

In addition to the TPNCs listed in IRM 3.12.3 the following TPNC is valid for this Error Code:

311 -We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

Exceptions & meaning →

Fields Displayed - EC 330¶

The following fields are displayed for EC 330.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

04OTI

Other Income

03OTX

Total Other Taxes Amount

Total Other Taxes Computer Amount

03TAX

Total Tax IMF

Total Tax IMF Computer

S52NP

Section 52 Not Present

5218

Part Year Coverage

5219

Qualified HSA Funding

5220

Total Income on HDHP Coverage

5221

Additional Tax on HDHP Coverage

Additional Tax on HDHP Coverage Computer

Exceptions & meaning →

Error Code 331 - Form 8959 Additional Medicare Tax¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, Error Code 331, Form 8959 for invalid conditions and correction procedures for all tax forms, and for TPNCs for Form 1040. For Form 1040-NR use the TPNCs listed for Form 8959 errors in EC 333 at IRM 3.22.3.246.3. For Form 1040-SS (sp) and Form 1040-SS see IRM 3.22.3.244.2 for additional instructions.

Exceptions & meaning →

Fields Displayed - EC 331¶

The following fields are displayed for EC 331.

1040-NR

1040-SS (sp)/1040-SS

Field Title

Clear Code

01FSC

Filing Status Code

01TXP

Tax Period

01PS

Primary SSN

01SS

Secondary SSN

05AMT

Form 8959 Additional Medicare Tax

7118

Form 8959 Additional Medicare Tax Amount

7118>

Additional Medicare Tax Computer

7118V

Additional Medicare Tax Verified

03OTX

Total Other Taxes Amount

Total Other Taxes Computer Amount

03TAX

Total Tax IMF

Total Tax IMF Computer

7101

Medicare Wages

7102

Unreported Tips from Form 4137

2406

Section 24 Unreported Tips

7103

Unreported Wages from Form 8919

6106

Form 8919 Section 61 Total Wages

6206

Form 8919 Section 62 Total Wages

7107

Additional Medicare Tax on Wages

7107>

Additional Medicare Tax on Wages Computer

17TNE>

Section 17 Total Net Earnings Computer

18TNE>

Section 18 Total Net Earnings Computer

7108

Section 71 Self-Employment Income

7113

Additional Medicare Tax on Self-Employment Income

7113>

Additional Medicare Tax on Self-Employment Income Computer

7114

Railroad Retirement Compensation

7117

Tier I Additional Medicare Tax

7117>

Tier I Additional Medicare Tax Computer

7119

Medicare Tax Withheld

7121>

Medicare Tax Withholding Computer

7122>

Additional Medicare Tax Withholding on Medicare Wages Computer

7123

Tier I Additional Medicare Tax Box 14 W-2

7124

Total Additional Medicare Tax Withholding

7124>

Total Additional Medicare Tax Withholding Computer

Exceptions & meaning →

Correction Procedures - Form 8959 and Form 1040-SS (sp) and Form 1040-SS¶

Follow the correction procedures for EC 331 in IRM 3.12.3. All references to Form W-2 in these instructions also apply to Forms W-2AS, W-2CM, W-2GU, W-2VI, and 499R-2/W-2PR.

For Form 499R-2/W-2PR, Medicare wages and tips are reported in Box 19 (Box 5 on Form W-2) and Medicare tax withheld is reported in Box 20 (Box 6 on Form W-2). If corresponding for support of line 19 or 23 of Form 8959 per EC 331 instructions, then SSPND 215 using Form 13975 and select fill-in paragraph PD (Form 1040-SS (sp)) or PJ (Form 1040-SS) in Exhibit 3.22.3-13.

If Field 03TAX is blank and lines 3 through 6 are blank on the tax form, enter "1.00" in Field 03TAX before entering "C" in the clear field to generate EC 334. After clearing EC 331, EC 334 will generate. See EC 334 at IRM 3.22.3.247.8 for a list of TPNCs to assign on Form 1040(PR) and Form 1040-SS for Form 8959 errors.

Exceptions & meaning →

Error Code 332 Form 8960, Net Investment Income Tax-Individuals, Estates, and Trusts¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 332 for invalid conditions and IRM 3.12.3 and IRM 3.22.3 for correction procedures.

Exceptions & meaning →

Fields Displayed - EC 332¶

The following fields are displayed for EC 332.

1040-NR

Field Title

Clear Code

01FSC

Filing Status Code

01TXP

Tax Period

01PS

Primary SSN

05NIT

Form 8960 Net Investment Income Tax

7217

Net Investment Income Tax

7217>

Net Investment Income Tax Computer

7217V

Net Investment Income Tax Verified

03OTX

Total Other Taxes Amount

Total Other Taxes Computer Amount

03TAX

Total Tax IMF

Total Tax IMF Computer

72IND

Investment Income Checkboxes

7201

Section 72 Taxable Interest

03INT

Taxable Interest

7202

Section 72 Ordinary Dividends

03DIV

Ordinary Dividends

7203

Annuities from Non-Qualified Plans

7204A

Section 72 Rent Royalties Partnerships

0405

Schedule E Profit Loss

Schedule E Profit Loss Computer

7204B

Adjustment for Net Income or Loss

7204C>

Part I First Checkpoint Computer

03CGL

Schedule D Profit Loss

Schedule D Profit Loss Computer

0404

Other Gains Losses

7205A

Net Gains from Disposition of Property

7205B

Net Gain or Loss

7205C

Adjustment from Disposition of Partnership Interest S Corp

7205D>

Part I Second Checkpoint Computer

7206

Traders Net Gain Loss

7207

Other Modifications to Investment Income

7208

Total Investment Income

7208>

Total Investment Income Computer

7209A

Investment Interest Expense

7209B

State Income Tax

7209C

Miscellaneous Investment Expenses

7209D>

Deductions Computer

7210

Additional Modifications

7211

Total Deductions and Modifications

7211>

Total Deductions and Modifications Computer

7212>

Net Investment Income Computer

7213

Modified Adjusted Gross Income

7214>

Filing Status Threshold Computer

7215>

Part III Checkpoint Computer

7216

Form 8960 Taxable Investment Income

7216>

Form 8960 Taxable Investment Income Computer

Exceptions & meaning →

Correction Procedures for Form 8960, Net Investment Income Tax-Individuals, Estates,…¶

A Dual-status taxpayer is subject to Net Investment Income Tax only for the part of the year during which the taxpayer is a U.S. resident. If Field 7208 is less than Field 7208>, enter the taxpayer amount on line 17 of Form 8960 in Field 7217V.

Exceptions & meaning →

Error Code 333 - Form 8959 and Form 8960 and Other Taxes (Schedule 2, Line 18, Form…¶

Error Code 333 generates when Total Other Taxes Amount is not equal to Total Other Taxes Computer and a math error is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 333 and IRM 3.22.3 for invalid conditions, correction procedures for all forms, and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 333¶

The following fields are displayed for EC 333.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

05USS

Unpaid Tax on Tips SST

05III

Interest Due on Deferred Tax (IRC 453 Tax; Code A)

05IDT

Interest on Deferred Tax (IRC 453 Tax; Code A)

05LIR

Form 8611 Recapture Amount

05TAT

Total Additional Tax

03OTX

Total Other Taxes Amount

Total Other Taxes Computer Amount

03TAX

Total Tax IMF

Total Tax IMF Computer

S71NP

Section 71 Not Present

05AMT

Form 8959 Additional Medicare Tax

7118

Form 8959 Additional Medicare Tax Amount

7118>

Additional Medicare Tax Computer

7118V

Additional Medicare Tax Verified

S72NP

Section 72 Not Present

05NIT

Form 8960 Net Investment Income Tax

7217

Net Investment Income Tax

7217>

Net Investment Income Tax Computer

7217V

Net Investment Income Tax Verified

5217B

Additional Percentage Distribution Tax Amount

5221

HDHP Failure Additional Tax Amount Section 52

Form 8889 Additional Tax Section 52 Computer

S52NP

Section 52 Not Present

Exceptions & meaning →

Correction Procedures - Form 8960, Net Investment Income Tax-Individuals, Estates, and…¶

If the taxpayer's entry for Other Taxes in Field 03OTX does not match the computer's Other Taxes underprint, and the taxpayer did not transfer an amount from line 17, Form 8960, to Schedule 2, line 12, Form 1040, then search the return for an indication that the taxpayer is claiming an exemption from the Net Investment Income Tax based on a treaty or social security agreement (e.g., "exempt" , "SSTA" , Canada pension plan). If found, assign TPNC 409.

Exceptions & meaning →

Correction Procedures - Form 8959, Additional Medicare Tax, on Form 1040-NR (EC 333)¶

If the taxpayer made an error in computing line 7, Form 8959, on Form 1040-NR, assign TPNC 352.

If the taxpayer made an error in computing line 13, Form 8959, on Form 1040-NR, assign TPNC 353.

If the taxpayer made an error in computing line 17, Form 8959, on Form 1040-NR, assign TPNC 354.

If the taxpayer made an error in computing line 24, Form 8959, on Form 1040-NR, assign TPNC 355 when EC 366 displays.

If the taxpayer made an error in transferring line 18, Form 8959, to line 11, Schedule 2 (TY19, line 60 on Form 1040-NR), assign TPNC 356.

If the taxpayer made an error in transferring line 24 of Form 8959 to line 25c (TY19, line 62a) on Form 1040-NR, assign TPNC 357 when EC 366 displays.

Exceptions & meaning →

Correction Procedures - Dual-Status Form 1040-NR Shared Responsibility Payment¶

If a dual-status Form 1040-NR has an amount on line 60 (TY18 and prior) for the Shared Responsibility Payment (from Schedule 4, line 61 on the Form 1040 statement) then enter the amount in Field 05TAT.

Exceptions & meaning →

Correction Procedures - Form 8959 and Form 8960 and Other Taxes, Line 18, Schedule 2,…¶

Taxpayers use line 18, Schedule 2 (TY20, Line 8; TY19, line 60 on Form 1040-NR) to report any taxes not reported elsewhere on your return. Taxpayers are instructed to enter the amount of tax and a code that identifies the type of tax.

If the phrase OVDP or Offshore Voluntary Disclosure Program or a variation thereof appears beside the taxpayer's entry for other taxes, refer the return to CI with SSPND 332. Write OVDP Quiet Disclosure on Form 4227.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 333¶

The following TPNCs are valid for Form 1040-NR, Form 1040-SS (sp) and Form 1040-SS as indicated.

TPNC

Literal

Any previously assigned TPNC

100

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

352

We changed the amount reported on line 7, Form 8959. (Form 1040-NR/PR/SS)

353

We changed the amount reported on line 13, Form 8959. (Form 1040-NR/PR/SS)

354

We changed the amount reported on line 17, Form 8959. (Form 1040-NR/PR/SS)

356

An error was made in transferring from line 18, Form 8959 to your tax return. (Form 1040-NR/PR/SS)

357

An error was made transferring from line 24, Form 8959, to your tax return. (Form 1040-NR/PR/SS)

734

We changed the other taxes you reported because you made an error in totaling the taxes on Schedule 2, Additional Taxes, or transferring the amount to your tax return, or there was no explanation attached.

Exceptions & meaning →

Error Code 334 - Total Tax¶

EC 334 generates when Total Tax Taxpayer is not equal to Total Tax Computer and a math error is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, Error Code 334, Total Tax for invalid conditions and refer to both IRM 3.12.3 and IRM 3.22.3 for correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 334¶

The following fields are displayed for EC 334.

1040-NR

1040-SS (sp)/1040-SS

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01SPC

Special Processing Code

Exemption Code

Exemption Code Verified

03INC

Taxable Income

Taxable Income Computer

03TTX

Tentative Tax

Tentative Tax Computer

Tentative Tax Verified

05202

Alternative Minimum Tax

Alternative Minimum Tax Computer

0521A

Advance Premium Tax Credit Repayment

0521A>

Computed APTC Repayment Amount

03TBC>

Income Tax Before Credits Computer

03NRC

Total Statutory Credits

Total Statutory Credits Computer

03TAC>

Tax After Personal Credits Computer (PY)

03TNC

Tax on Income Not Effectively Connected

Tax on Income Not Effectively Connected Computer

05204

0503

Combined SE Tax

Combined SE Tax Computer

05SSM

Unreported Social Security and Medicare Tax for Form 4137 and 8919

Unreported Social Security and Medicare Tax for Form 4137 and 8919 Computer

05IRA

Combined Tax on Retirement Plans

05IRA>

Combined Tax on IRA and Retirement Plans Computer

29DX>

Tax on Early Distributions Computer

05HSH

Household Employment Tax Amount

Household Employment Tax Amount Computer

05FHB

First Time Home Buyer Repayment from Form 5405

Combined First Time Homebuyer Credit Repayment

PNFH>

Primary NAP First Time Homebuyer Credit

PNRI>

Primary NAP First Time Homebuyer Installment

58FRC>

Form 5405 Homebuyer Credit Repayment Computer

SNRI>

Secondary NAP First Time Homebuyer Installment

Form 5405 Homebuyer Credit Repayment Computer

03GTT

Gross Transportation Tax

S71NP

Section 71 Not Present

7118

Additional Medicare Tax Computer

7118>

Additional Medicare Tax Computer

S72NP

Section 72 Not Present

7217>

Net Investment Income Tax Computer

5221

HDHP Failure Additional Tax

Form 8889 Additional Tax Computer

05USS

Uncollected Tax on Tips

05LIR

Form 8611 Recapture Amount

05TAT

Total Additional Taxes

03OTX

Total Other Taxes Amount

Total Other Taxes Computer Amount

03TAX

Total Tax IMF

Total Tax IMF Computer

94TXV

Total Tax Verified

S46NP

Section 46 Not Present

4613A

10 percent Tax Rate Total Income

4613B

15 percent Tax Rate Total Income

4613C

30 percent Tax Rate Total Income

46TR1

Tax Rate Income Taxpayer Percentage 1

46TR2

Tax Rate Income Taxpayer Percentage 2

46131

XX percent Tax Rate Total Income

46132

YY percent Tax Rate Total Income

03BDR>

Balance Due/Refund Taxpayer

Balance Due/Refund Computer

Exceptions & meaning →

Correction Procedures - EC 334 Form 1040-NR Line 23a Tax on Income Not-Effectively…¶

Tax on income not effectively connected (NEC) with a United States trade or business is reported on Schedule NEC of Form 1040-NR. The amount on Schedule NEC, line 15, is transferred to line 23a (TY19, line 54) of Form 1040-NR.

Follow the instructions in EC 311 for validating tax on line 23a (TY19, line 54) before assigning TPNCs related to errors in NEC income and tax rates (see EC 311 at IRM 3.22.3.233.3). If Code & Edit edited line 23a (TY19, line 54) in red ink, and edited line 24 (TY19, line 61) with the same amount, enter the original taxpayer amount for line 24, (TY19, line 61) in Field 03TAX.

Exceptions & meaning →

Correction Procedures - EC 334 Form 1040-NR Total Tax¶

Total Tax Discrepancy - Follow instruction below.

Then

Total tax underprints with a lesser amount and an amount is present on line 23a (TY19, line 54),

Follow the instructions for line 23a (TY19, line 54) at IRM 3.22.3.247.2.

Form 1040-NR includes a write-in amount for a health care shared responsibility payment (SRP) and the return is a dual-status return,

Enter the amount in 05TAT.

If a dual-status taxpayer with Form 1040-NR as the controlling return has included an amount for the Shared Responsibility Payment (TY18 Schedule 4, line 61, on Form 1040 statement) for TY18 and prior in Total Tax, then enter the amount in Field 05TAT. If the amount claimed for the shared responsibility payment is greater than the maximum payment amount ($16,980 TY18; $16,320 TY17; $13,380 TY16; $12,420 TY15; $12,240 TY14) add the maximum amount to Field 05TAT instead of the taxpayers amount. If EC 334 generates for this condition assign TPNC 813.

If a dual-status taxpayer is including additional tax on the dotted portion of the total tax on Schedule 2, line 10 of Form 1040, or line 24 (TY19, line 61) of the Form 1040-NR including tax from Form 8960, Net Investment Income Tax, and amounts for the Shared Responsibility Payment, ensure the taxpayer added the amounts from both the controlling tax return and the statement return and enter them on the total tax line of the controlling return.

Then

The taxpayer correctly added the total tax amount from both returns,

Enter the taxpayer amount for total tax in Field 94TXV (Form 1040 or Form 1040-NR)

The taxpayer did NOT correctly add the total tax amount from both returns,

Enter the correct amount for total tax in Field 94TXV (Form 1040 or Form 1040-NR)

If "1.00" was entered in Field 03TAX, as instructed in the Caution in EC 331 instructions, then EC 370 may generate after assigning a TPNC at EC 334. Ripple these TPNCs at EC 370.

Exceptions & meaning →

Note:¶

These TPNCs are valid on Form 1040-NR, Form 1040-SS (sp), and Form 1040-SS, and the correct literal is selected systemically in English or Spanish as appropriate to the tax form.

If there is an entry on line 5 and no Form 8959 is attached, SSPND 215 and select paragraph O on Form 13975.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 334¶

The following TPNCs are used for EC 334.

TPNC

Literal

Any previously assigned TPNC

100

101

We computed your tax using FSC 1.

102

We recomputed your tax using FSC 2 (Form 1040)

103

We recomputed your tax using FSC 3

104

We recomputed your tax using FSC 4. (Form 1040)

108

We recomputed your tax using FSC 1. You didn't show the name of the person who qualifies you for head of household filing status. (Form 1040)

176

Transferred AGI from page 1 to page 2 incorrectly.

200

We changed your total exemption amount based on the information you listed on Lines 6a - 6c. (Form 1040)

201

You didn't limit your exemptions correctly. You are required to apply the limit because of your AGI and filing status.

202

You can't claim an exemption for yourself when you can be claimed as a dependent on another person's return.

204

We disallowed the exemption for your spouse; can't use FSC 1 or FSC 4 and claim spouse as exemption. (Form 1040)

209

We changed the amount of tax shown on your return. The amount entered was incorrect based on your taxable income and filing status.

211

We changed the amount of tax shown on your return. The tax rates on Qualified Dividends and Capital Gains are generally lower than the standard rates. It appears your tax was not computed using these rates or the amount of tax was computed incorrectly.

217

Based on our computation of your taxable income, you don't owe any tax.

218

We computed your tax for you.

219

Figured Tentative Tax incorrectly.

230

We found an error in the addition of your alternative minimum tax to your tentative tax on page 2 of your return. (Form 1040-NR)

242

Adjusted Education credit - missing or invalid SSN; FSC 3; not an exemption. (Form 1040)

246

We didn't allow part or all of the amount claimed as retirement savings contribution credit. The credit is not allowed if you are not at least 18 years of age at the end of the Tax Year.

247

Computed or transferred Form 8880 incorrectly.

260

We changed the amount claimed as other credits there was an error on Form 3800, General Business Credits. The error was in the:

Computation of the 3800 credit.

Computation of the credit on Form 8826.

Computation of the credit on Form 8881.

Transfer of that amount to your tax return.

264

You added your credits incorrectly.

265

You subtracted your credits from your tax incorrectly.

268

We changed the amount of self-employment tax on your tax return because there was an error on Schedule SE, Self-Employment Tax. The error was in one of the following:

Computation of the self-employment tax on Schedule SE.

Transfer of the amount to your return.

273

We reduced or removed the total self-employment tax on page 2 of your tax return. Your net earnings were less than $400; therefore, they are not subject to self-employment tax.

275

Transferred Form 5329 incorrectly.

276

We changed the amount claimed as Additional Tax on your tax return because there was an error on Schedule 8812, Credits for Qualifying Children and Other Dependents. The error was in one of the following:

Advanced Child Tax Credit was not reconciled.

Advanced Child Tax Credit was reconciled incorrectly.

The amount was not transferred correctly to your return.

280

We changed the amount of household employment taxes on your tax return because there was an error on Schedule H, Household Employment Taxes. The error was in the: •Computation of the total tax on Schedule H and/or •Transfer of that amount to your tax return.

281

We adjusted the total tax to exclude the refundable interest from Form 8697.

282

You incorrectly added the amounts used to figure your total tax.

311

321

Dual Status taxpayers cannot file a joint tax return. Based on the information on your return, you are making an election to be taxed as a resident alien for the entire tax year. We have changed your tax return accordingly. (Form 1040)

324

As dual status taxpayer, you aren’t entitled to the standard deduction. We have changed your tax return accordingly.

325

You did not combine the income from your Dual Status Statement to your Dual Status return correctly. We have adjusted your return accordingly.

326

You transferred your tax due on income not effectively connected to a U.S. trade or business incorrectly from your Form 1040-NR, Schedule NEC, to your Form 1040-NR, page 2. We have changed your tax return accordingly.

328

We didn’t receive your answer to our request for the dates you were in the U.S. Therefore, we changed your dual status return using only Form 1040-NR. We have changed your tax return accordingly.

329

We changed the amount of total tax on line 6 of your Form 1040-SS because there was an error adding lines 3 through 5. (Form 1040-SS)

348

352

We changed the amount reported as Additional Medicare Tax, Form 8959 on your Form 1040-NR. There was an error computing Part I, line 7, Form 8959, Additional Medicare Tax.

353

We changed the amount reported as Additional Medicare Tax, Form 8959 on your Form 1040-NR. There was an error computing Part II, line 13 Form 8959, Additional Medicare Tax.

354

We changed the amount reported as Additional Medicare Tax, Form 8959 on your Form 1040-NR. There was an error computing Part III, line 17, Form 8959, Additional Medicare Tax.

356

We changed the amount of tax on your Form 1040-NR. There was an error in the transfer of the amount from line 18 of your Form 8959, Additional Medicare Tax, to your Form 1040-NR.

359

We changed the amount of total tax on line 6 of your Form 1040-SS (sp).

Corregimos la cantidad total de la contribución en la Línea 6 de su Forma 1040-SS (sp), porque sumando la Línea 3 hasta la 5 hubo un error. (1040-SS (sp))

393

Nonresident aliens are exempt from the individual shared responsibility payment (SRP). We adjusted your return accordingly. Any overpayment will be refunded to you.

409

We can’t allow your tax treaty exemption. Your claim is not a valid treaty claim. We changed your return accordingly.

418

You aren’t entitled to the standard deduction when you file Form 1040-NR. We changed your return accordingly.

423

Because your country of residence does not allow you to take exemptions for dependents, we have disallowed your Child Tax Credit and/or Additional Child Tax Credit.

424

We cannot allow the amount you claimed for education credit. Nonresident aliens are not eligible for this credit. We have adjusted your return accordingly.

426

You figured your total tax incorrectly on income not effectively connected with a U.S. trade or business on Form 1040-NR, Schedule NEC. We have changed your tax return accordingly.

427

You incorrectly transferred the amount of tax on income not effectively connected with a U.S. trade or business from Form 1040-NR, Schedule NEC to page 2. We have adjusted your return accordingly.

428

You figured your tax using an incorrect tax treaty rate. We have changed your tax return accordingly.

429

You figured your tax incorrectly on Form 1040-NR, page 2, using the tax tables. We refigured your tax using the 30% (or lower treaty) rate from Form 1040-NR, Schedule NEC. We have changed your tax return accordingly.

432

We can’t allow the amount you reported for Income Tax Withheld At Source. You didn’t attach Form 1042-S to verify the amount as required. We have changed your tax return accordingly.

443

446

You transferred your tax due incorrectly from your Form 1040 to your Form 1040-NR. We have changed your tax return accordingly.

447

Your tax rate for gambling winnings paid to nonresident aliens is 30%. We have changed your tax return accordingly.

448

Gambling winnings are exempt from tax due to a U.S. tax treaty with your country of residence. We have changed your tax return accordingly.

449

We changed the amount of taxable income on your tax return because the exemption amount was subtracted incorrectly.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

568

No reply - Form 8863 (Form 1040)

569

No Reply - Form 8880 (Form 1040)

592

No Reply - Schedule 8812

606

We didn't allow the exemption claimed for any dependent born after December 31 of the tax year of the return you filed.

649

We changed your installment payment of the First-Time Homebuyer Credit on your return. We changed the payment because of one of the following:

You made an error in the computation of the payment owed.

You transferred the payment incorrectly from Form 5405 to your tax return.

You reported a disposition or change in the use of your main home that indicates you are not required to repay the First-Time Homebuyer Credit.

According to our records, you are not required to repay the credit.

A repayment of the credit is not required from a taxpayer who died in the tax year of the return.

650

The deceased taxpayer was not eligible for exclusion of income under IRC Section 692.

734

We changed the other taxes you reported because you made an error in totaling the taxes on Schedule 2, Additional Taxes, or transferring the amount to your tax return, there was no explanation attached.

759

Exceptions & meaning →

Note:¶

Exceptions & meaning →

Error Code 336 - EIC TIN Qualification Indicator¶

EC 336 generates on Form 1040 when Earned Income Credit (EIC) is claimed and the primary, secondary, or EIC child NAP TIN Assignment Date is after the Tentative Return Due Date (T-DAT>), and when Schedule EIC is present and Field E-NUM> doesn’t equal the number of EIC children claimed. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 336 for screen displays, invalid conditions, and correction procedures.

Exceptions & meaning →

Error Code 337/637 - Earned Income Tax Credit with Schedule EIC¶

EC 337 generates when Total Payments is not equal to Total Payments Computer and EIC data is inconsistent and a math error is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 337 for screen display and invalid conditions and refer to both IRM 3.12.3 and IRM 3.22.3 for correction procedures and allowable TPNCs.

Exceptions & meaning →

Correction Procedures - EC 337 Form 1040¶

If wages are reported on Form 1040 and exempted by a valid tax treaty claim, then the exempted amount is not taxable and can’t be included as earned income for computing Earned Income Tax Credit (EITC). If a taxpayer is claiming EITC and is exempting income with a valid tax treaty claim, follow these steps:

Manually compute earned income excluding the treaty exempt amount;

Enter the correct amount of earned income in Field 94EIV; and

If EC 337 regenerates, assign TPNC 285.

Taxpayers residing outside of the U.S. are generally not entitled to Earned Income Tax Credit (EITC). EITC claims on returns with addresses outside of the U.S. must be reviewed for eligibility. A taxpayer must live in the U.S. more than half of the year to be eligible for EITC. The U.S. includes the 50 states and the District of Columbia for this purpose and does not include U.S. territories. Follow instructions below to determine eligibility and corrective actions.

And

Then

The taxpayer does not claim EITC,

Edit RPC "B" .

The taxpayer claimed EITC and they are in the "U.S. military" stationed overseas or in one of the U.S. territories,

Search signature area, Form W-2, and attachments for any of the following indications:

United States Air Force

United States Army

United States Coast Guard

United States Marines

United States Navy

DCPS CIVPAY DIRECTORATE

DFAS - ATTN: Defense Finance and Accounting Service

USAF - Active Duty

DFAS - PMJFC/DE

Commanding Office USCG Human Resources Service Information Center

They meet all the qualifying criteria to claim EITC,

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 337, for complete instructions to validate EITC.

Allow the EITC when the taxpayer qualifies.

The taxpayer claimed EITC,

Excludes income under IRC 931, IRC 933, Form 4563,

Enter RPC "B" .

Assign TPNC 343.

The taxpayer is claiming EITC and resides outside of the U.S. for part of the tax year,

It can be determined that the taxpayer lived in and moved from one of the 50 United States or District of Columbia during the tax year. Any one of the following criteria can be used to make this determination:

State or Local tax paid on Form (s) W-2

Schedule C with United States address

Taxpayer has a U.S. address on Form(s) W-2

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 337, for complete instructions to validate the EITC.

Allow the EITC when the taxpayer qualifies.

The taxpayer claims EITC,

Form(s) W-2 and the tax return have the same address that is outside of the United States,

Enter RPC "B"

Assign TPNC 540.

Form 1040 with Form 2555 - Take the following action:

And

Then

The taxpayer is excluding earned income on Form 2555,

Is claiming Earned Income Tax Credit,

Enter RPC "B" .

EC 366 generates, assign TPNC 540.

Exceptions & meaning →

Correction Procedures - EC 337 Dual-Status¶

Generally, you cannot receive the earned income credit if you are a nonresident alien for any part of the tax year.

If a dual-status is claiming EIC disallow the EIC and assign TPNC 349

Exceptions & meaning →

Exception:¶

If the taxpayer files a joint return with a resident or resident alien and makes an election to be treated as a resident for the entire year, allow the credit. See IRM 3.22.3.190.2.3.1 for criteria required for the election.

Exceptions & meaning →

Error Code 338/638 - EIC without Schedule EIC¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 338, for screen display and invalid conditions, and refer to both IRM 3.22.3 and IRM 3.12.3 for correction procedures and allowable TPNCs.

Exceptions & meaning →

Correction Procedures - EC 338 Form 1040¶

If wages are reported on Form 1040 and exempted by a valid tax treaty claim then the exempted amount is not taxable and is not included as earned income for computing Earned Income Tax Credit (EITC). If a taxpayer is claiming EITC and is exempting income with a valid tax treaty claim, follow these steps:

Manually compute earned income excluding the treaty exempt amount;

Enter the correct amount of earned income in Field 94EIV; and

If EC 338 regenerates, assign TPNC 285.

Taxpayers residing outside of the U.S. are generally not entitled to Earned Income Tax Credit (EITC). EITC claims on returns with addresses outside of the U.S. must be reviewed for eligibility. A taxpayer must live in the U.S. more than half of the year to be eligible for EITC. The U.S. includes the 50 states and the District of Columbia and does not include U.S. Territories. Follow instructions below to determine eligibility and corrective actions.

And

Then

The taxpayer does not claim EITC,

Edit RPC "B" .

The taxpayer claimed EITC and they are in the "U.S. military" stationed overseas or in one of the U.S. territories,

Search signature area, Form W-2, and attachments for any of the following indications:

United States Air Force

United States Army

United States Coast Guard

United States Marines

United States Navy

DCPS CIVPAY DIRECTORATE

DFAS - ATTN: Defense Finance and Accounting Service

USAF - Active Duty

DFAS - PMJFC/DE

Commanding Office USCG Human Resources Service Information Center

They meet all the qualifying criteria to claim EITC,

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 338, for complete instructions to validate EITC.

Allow the EITC when the taxpayer qualifies.

The taxpayer claimed EITC,

Excludes income under IRC 931, IRC 933, Form 4563

Enter RPC "B" .

Assign TPNC 343.

The taxpayer is claiming EITC and resides outside of the U.S. for part of the tax year,

It can be determined that the taxpayer lived in and moved from one of the 50 states or District of Columbia during the tax year. Any one of the following criteria can be used to make this determination:

State or Local tax paid on Form(s) W-2

Schedule C with United States address

Taxpayer has a U.S. address on Form(s) W-2

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 338, for complete instructions to validate the EITC.

Allow the EITC when the taxpayer qualifies.

The taxpayer claims EITC,

Form(s) W-2 and the tax return have the same address that is outside of the U.S.,

Enter RPC "B" .

Assign TPNC 540.

Form 1040 with Form 2555 - Take the following action:

And

Then

The taxpayer is excluding earned income on Form 2555

Is claiming Earned Income Tax Credit,

Enter RPC "B"

EC 366 generates, assign TPNC 540.

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01CCC

Computer Condition Code

01SPC

Special Processing Code Field

03WG

W-2 Wages

05USS

Unpaid SST Tax on Tips

03WH

Withholding from Form(s) W-2 or 1099

05ESS

Excess SST Withheld

94ESV

Excess Social Security Tax Withheld Verified Amount

97MEW>

MeF Excess Withholding

Exceptions & meaning →

Correction Procedures - EC 342¶

Form 1040-NR - Follow the instructions below:

And

Then

Taxpayer (usually "F" , "J" , "M" or "Q" visa holders) attempts to have Social Security tax refunded,

There is an indication that Code & Edit already issued a 513C letter

Delete Social Security tax from Field 05310 and Field 03PAY

Adjust total payments and Balance Due/Refund

Ensure there is a notation in upper left-hand corner of return 513C and Form 843 detached

Exceptions & meaning →

Note:¶

Do not assign TPNC

Code & Edit did NOT issue a 513C letter

Send letter 513C

Delete Social Security tax from Field 05ESS and Field 03PAY,

Adjust total payments and Balance Due/Refund

The following fields are displayed EC 343.

1040

Field Title

01TXP

Tax Period

01EXC

Exemption Code

94EXV

Exemption Code Verified

01CCC

Computer Condition Code

01RPC

Return Processing Code

01SPC

Special Processing Code

T-DAT>

Tentative Return Due Date

01PAD>

Primary TIN Assignment Date

01PIC>

Primary NAP ITIN Status Code

01SAD>

Secondary TIN Assignment Date

01SIC>

Secondary NAP ITIN Status Code

01TCE>

Total Children Eligible for Child Tax Credit Computer

94CEV

Child Tax Credit Eligible Children Verified

01TDE>

Other Dependent Credit Total Eligible Number

94DEV

Other Dependent Credit Total Eligible Number Computer

02CT1

Child Tax and Other Dependent Credit Indicator 1

02YB1>

Year of Birth Indicator 1

02NP1>

Dependent NAP Access Indicator 1

02DC1>

Dependent 1 NAP ITIN Status Code

02AD1>

Dependent 1 NAP TIN Assignment Date

02CT2

Child Tax and Other Dependent Credit Indicator 2

02YB2>

Year of Birth Indicator 2

02NP2>

Dependent NAP Access Indicator 2

02DC2>

Dependent 2 NAP ITIN Status Code

02AD2>

Dependent 2 NAP TIN Assignment Date

02CT3

Child Tax and Other Dependent Credit Indicator 3

02YB3>

Year of Birth Indicator 3

02NP3>

Dependent NAP Access Indicator 3

02DC3>

Dependent 3 NAP ITIN Status Code

02AD3>

Dependent 3 NAP TIN Assignment Date

02CT4

Child Tax and Other Dependent Credit Indicator 4

02YB4>

Year of Birth Indicator 4

02NP4>

Dependent NAP Access Indicator 4

02DC4>

Dependent 4 NAP ITIN Status Code

02AD4>

Dependent 4 NAP TIN Assignment Date

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

TFIEX>

Total Foreign Income Exclusion Computer

Tax Table Income Computer

03TBC>

Income Tax Before Credits Computer

03COD

Child Tax Credit

Child Tax Credit Computer

03COD>

Gross Child Tax Credit Computer

94CDV

Child Tax Credit Verified

03TAX

Total Tax

Total Tax Computer

03ACT

Additional Child Tax Credit

Additional Child Tax Credit Computer

03ACT>

Gross Additional Child Tax Credit

94ACV

Additional Child Tax Credit Verified

S47NP

Section 47 Not Present

47NCP

Nontaxable Combat Pay

47EI>

Additional Child Tax Credit Earned Income Computer

47SSM

Total Social Security and Medicare Taxes

Exceptions & meaning →

Invalid Condition - EC 343¶

EC 343 generates when RPC "8" is present and when both the following conditions apply:

Additional Child Tax Credit is significant

EC 344 generates when Additional Child Tax Credit is not equal to Additional Child Tax Credit Computer and a math error is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 344, for invalid conditions and refer to both IRM 3.12.3 and IRM 3.22.3 for correction procedures and allowable TPNCs.

On TY 2021 returns If a box is checked on Schedule 8812, line 13a or line 13b, the Child Tax credit is fully refundable and is limited only by income phase-out amounts and any portion already advanced. The computer will limit or phase out the credit when the modified Adjusted Gross Income (AGI) is greater than or equal to $75,000 ($150,000 if FSC 2/5, $112,500 if FSC 4/7). If either box 13a or 13b on Schedule 8812 is checked, the taxpayer receives $3,600 for the number of dependents under age 6 plus $3,000 for the remaining dependents ages 6 through under 18.

On TY 2021 and prior returns, manually compute the credit and enter the correct amount in Field 94ACV prior to assigning a TPNC.

Exceptions & meaning →

Note:¶

Programming will compute Additional Child Tax Credit based on the qualification rules for TY 202212 which includes SSN requirements, maximum credit of $1,500 per child and AGI thresholds.

Exceptions & meaning →

Fields Displayed - EC 344¶

The following fields are displayed for EC 344.

1040-NR

1040-SS (sp)/1040-SS

Field Title

01EXC

Exemption Code

94EXV

Exemption Code Verified

01TXP

Tax Period

01PS

Primary TIN

01CCC

Computer Condition Code

01RPC

Return Processing Code

01SPC

Special Processing Code

T-DAT>

Tentative Return Due Date Computer

01PAD>

Primary NAP TIN Assignment Date

01PIC>

Primary ITIN Status Code

01TCE>

Child Tax Credit Total Eligible Number Computer

94CEV

Child Tax Credit Total Eligible Verified Number

01TDE>

Other Dependent Credit Total Eligible Number

94DEV

Other Dependent Credit Total Eligible Verified Number

02DTR

Dependent TIN Requirement

02MT4

More Than 4 Dependents

02CT1

Dependent 1 Child Tax and Other Dependent Credit Indicator

02YB1>

Dependent 1 Child Tax Credit Year of Birth

02NP1>

Dependent 1 NAP Access Indicator

02DC1>

Dependent 1 ITIN Status Code

02AD1>

Dependent 1 TIN Assignment Date

02CT2

Dependent 2 Child Tax and Other Dependent Credit Indicator

02YB2>

Dependent 2 Child Tax Credit Year of Birth

02NP2>

Dependent 2 NAP Access Indicator

02DC2>

Dependent 2 ITIN Status Code

02AD2>

Dependent 2 TIN Assignment Date

02CT3

Dependent 3 Child Tax and Other Dependent Credit Indicator

02YB3>

Dependent 3 Child Tax Credit Year of Birth

02NP3>

Dependent 3 NAP Access Indicator

02DC3>

Dependent 3 ITIN Status Code

02AD3>

Dependent 3 TIN Assignment Date

02CT4

Dependent 4 Child Tax and Other Dependent Credit Indicator

02YB4>

Dependent 4 Child Tax Credit Year of Birth

02NP4>

Dependent 4 NAP Access Indicator

02DC4>

Dependent 4 ITIN Status Code

02AD4>

Dependent 4 TIN Assignment Date

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

03TTI>

Tax Table Income Computer

03TBC>

Income Tax Before Credits Computer

98CWB>

Credit Limit Worksheet B

03COD

Child and Other Dependent Credit Amount

Child and Other Dependent Credit Computer Amount

03COD>

Gross Child and Other Dependent Credit Computer

94CDV

Child and Other Dependent Credit Verified Amount

03TAX

Total Tax IMF

Total Tax IMF Computer

03ESP

Estimated Taxes

05ESS

Excess Social Security Withheld

03PYA

Prior Year Earned Income Additional Child Tax Credit Amount

03ACT

Additional Child Tax Credit Amount

Additional Child Tax Credit Computer

03ACT>

Gross Additional Child Tax Credit Computer

94ACV

Additional Child Tax Credit Verified Amount

S47NP

Section 47 Not Present

47NCP

Schedule 8812 Nontaxable Combat Pay

47EI

Additional Child Tax Credit Earned Income Tax Payer

47EI>

Earned Income Computer

47SSM

47SSM (TY20 and prior)

Total SS and Medicare Withheld Amount

47PRI

Puerto Rico Source Income

03OEI

Additional Child Tax Credit Opt Out Election Indicator

Exceptions & meaning →

Correction Procedures - EC 344 Form 1040-SS (sp)/Form 1040-SS Additional Child Tax…¶

Credit for Other Dependents (ODC) is not a refundable credit and can’t be claimed on Form 1040-SS (sp) or Form 1040-SS.

To claim additional child tax credit (ACTC) on Form 1040-SS (sp) or Form 1040-SS, all three of the following must apply:

The taxpayer is a bona fide resident of Puerto Rico, and

Social Security or Medicare taxes were withheld from wages, or these taxes were paid as tax on tips, or as self-employment (SE) tax, and

For TY 22 and later One (1) or more qualifying children are present on the form. For TY 20 and prior Three (3) or more qualifying children are present on the return.

For PY22 and prior Additional Child Tax Credit will be determined by the smaller of line 7 or line 14 from the Form 1040(PR) or Form 1040-SS Additional Child Tax Credit Worksheet found in the form instructions.

Exceptions & meaning →

Note:¶

The TY 2022 maximum credit amount for each qualifying child is $1,500. The TY 2018 - TY 2021 maximum credit amount for each qualifying child is $1,400. For prior years, the maximum credit amount is $1,000 per child.

Additional Child Tax Credit cannot exceed the combined amount (line 14 Form 1040(PR)/Form 1040-SS worksheet) of:

One half of the SE tax from Part V, line 12

One half of the additional Medicare taxes paid on SE income (line 13, Form 8959)

Total withheld Social Security and Medicare taxes from Form 499R-2/W-2PR

Total employee Social Security and Medicare taxes on tips shown on the dotted portion next to Part I, line 6

Total uncollected employee Social Security and Medicare tax shown on the dotted portion next to Part I, line 6

Additional Medicare taxes paid on wages (line 7, Form 8959)

Less any excess SE tax withheld (Part 1, line 8) and additional Medicare taxes withheld (line 22, Form 8959)

ERS examiners use the following criteria to determine a Qualifying Child for the purpose of additional child tax credit:

For TY 2018 and later, the child must have a Social Security number (SSN) that was issued before the due date of the return for the tax year the ACTC is claimed. A child with an individual taxpayer identification number (ITIN) doesn’t qualify for ACTC after TY 2017.

The child must be a U.S. citizen, U.S. national or a U.S. resident alien.

The child must be a son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, grandchild, niece, or nephew) of the taxpayer. A foster child is any child placed with a taxpayer by an authorized placement agency or by a judgment, decree, or other order of any court of competent jurisdiction,

The child must be younger than the taxpayer (or spouse, if filing jointly) or is permanently and totally disabled.

The child must be under age 17 at the end of the year,

The child must live with the taxpayer for more than half of the tax year.

Exceptions & meaning →

Exception:¶

There are exceptions for a child who is born or dies during the tax year and for certain kidnapped children. A temporary absence from the home of the taxpayer or the child due to special circumstances such as school, vacation, business, medical care, military orders or detention in a juvenile facility, may count as time lived together. A non-custodial parent may claim a child as a qualifying child for the child tax credit if the special rules for a child of divorced or separated parents or parents who live apart apply.

On Form 1040-SS (sp)/SS, Field 02CT1/2/3/4 are transcribed from the checkmark edited to the right of line 2c for every qualifying child. C&E edits “X” for the children that does not qualify for ACTC. For TY20 and prior, If there are fewer than 3 qualifying children, C&E “X” all dependents.

Line 8 - Excess Social Security tax withheld. If there is an entry present on line 8, follow procedures for Error Code 342 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 342. EC 121 doesn’t generate for Form 1040-SS (sp)/SS however the instructions in the error code apply.

Primary and Secondary TIN Validation. Follow these instructions to determine eligibility for ACTC based on Primary or Secondary TIN validation. For prior year returns use IMFOLT to check for a TC 460 on the tax year. If the TC 460 is present the TIN assignment date must be prior to the TC 460 date to be valid for the tax year.

Then, Form 1040-SS (sp)

Then, Form 1040-SS

a) All tax years the Primary TIN, or Secondary TIN if FSC 2, is missing or has a name control mismatch,

Assign TPNC 453

Assign TPNC 454

b) All tax years, the ITIN Status Code Indicator in Field 01PIC>, or Field 01SIC> if FSC 2, is I,

Assign TPNC 319

Assign TPNC 320

TY 2022 return Assignment Date in Field 01PAD>, and Field 01SAD> if FSC 2, is on or before April 18, 2023

TY 2020 return TIN Assignment Date in Field 01PAD>, and Field 01SAD> if FSC 2, is on or before May 17, 2021,

TY 2019 return TIN Assignment Date in Field 01PAD> and Field 01SAD> if FSC 2, is on or before July 15, 2020,

Exceptions & meaning →

Caution:¶

For all prior year tax periods if the TIN Assignment Date in Field 01PAD>, and Field 01SAD> if FSC 2, is on or before the TC 460 extension due date found on IMFOLT for the tax year,

Determine the total number of eligible dependents for ACTC claimed and enter in Field 94CEV

TY 2022 return Assignment Date in Field 01PAD>, and Field 01SAD> if FSC 2, is after April 18, 2023

TY 2020 return TIN Assignment Date in Field 01PAD>, or Field 01SAD> if FSC 2, is after May 17, 2021, and no TC 460 on IMFOLT.

TY 2019 TIN Assignment Date in Field 01PAD>, or Field 01SAD> if FSC 2, is after July 15, 2020, and no TC 460 on IMFOLT

TY 2018 and prior TIN Assignment Date in Field 01PAD>, or Field 01SAD> if FSC 2, is after the date on Field T-DAT>, and no TC 460 on IMFOLT

For all prior year tax returns The TIN Assignment Date in Field 01PAD>, or Field 01SAD> if FSC 2, is after the TC 460 extension due date found on IMFOLT for the tax year

Assign TPNC 496

Assign TPNC 495

Section 47. Section 47 must be present for calculating ACTC. Section 47 is transcribed from Part II of Form 1040-SS (sp)/SS. Follow these instructions if Section 47 isn’t present:

And

Then

a) The taxpayer is paying SE Tax on Part I, line 3,

GTSEC 47 and transmit.

b) The taxpayer is not paying SE Tax,

Page 2 is missing,

SSPND 215 and correspond for Part II and supporting documentation using Form 13975

For tax year 2022 and prior use paragraph G,

For tax year 2023 and forward use paragraph F.

Correction Procedures for Additional Child Tax Credit. After following the instructions in paragraphs (8) and (9) above, follow all instructions in the paragraphs below to resolve errors with ACTC on Form 1040(PR) and Form 1040-SS.

Exceptions & meaning →

Caution:¶

A bona fide resident of Puerto Rico may be eligible for a special calculation of ACTC on TY 2017 Form 1040(PR)/SS due to Hurricane Irma or Maria Tax Relief. Carefully review TY 2017 claims using all of the following instructions before assigning TPNCs.

Field 47PRI (Part II, line 1). ACTC is limited based on income derived from PR sources. This income limitation is computer calculated using the amount in Field 47PRI. If the taxpayer amount on line 9 of Form 1040(PR)/SS is less than the computer underprint for Field 03ACT, then take these steps:

If an amount is present on line 1, Part II, then enter in Field 47PRI.

If line 1, Part II, is blank, add the wages from attached Form 499R-2/W-2PR and Form W2-PR to the profit (or loss) from parts III and IV of Form 1040(PR)/SS and enter in Field 47PRI.

For TY 2018 and later returns, if Field 47PRI is $400,000.00 or more for Filing Status 2 ($200,000.00 or more for all other filing status) see if any of the following conditions are present: •If Code & Edit has "X’d" additional dependents listed either on line 2, Part I of Form 1040(PR)/SS or on a statement •If it is a MeF return

If the return meets the criteria above, SSPND 490 and send the return to P&A to go to HQ. If the return does not meet the criteria continue with the instructions.

For TY 2017 and prior returns, continue with instructions below.

Qualifying Child Verification. Follow these instructions for verifying the eligibility of children claimed for ACTC. IF 1 or more children are qualified (for TY20 and prior if 3 or more children are qualified), also follow the instructions in paragraphs (13) - (14) before assigning these TPNCs. For prior year returns use IMFOLT to check for a TC 460 on the tax year. If the TC 460 is present the TIN assignment date must be prior to the TC 460 date to be valid for the tax year.

Then for Form 1040-SS (sp)

Then for Form 1040-SS

a) The return is for TY 201812 and later and Dependent claimed has an ITIN,

Assign TPNC 460

b) TIN is missing for dependent claimed for ACTC,

Assign TPNC 490.

Assign TPNC 475.

c) TIN and name control mismatch for dependent claimed for ACTC,

Assign TPNC 491.

Assign TPNC 476.

d) The child claimed for ACTC is over the age limit,

Assign TPNC 369.

Assign TPNC 339.

e) Dependent child claimed for ACTC has Dependent ITIN Status Code "I" ,

Assign TPNC 464.

TY 2022 return Assignment Date in Field 01PAD>, and Field 01SAD> if FSC 2, is on or before April 18, 2023

TY 2020 return, Dependent TIN assignment date is after the date in Field T-DAT> but Dependent TIN assignment date is on or before May 17, 2021

TY 2019 return, Dependent TIN assignment date is after the date in Field T-DAT> but The TIN assignment date for a child claimed for ACTC is on or before July 15, 2020

TY 2018 and prior TIN assignment date for a child claimed for ACTC is greater than the date in Field T-DAT>, but before TC 460 date

Exceptions & meaning →

Exception:¶

If TC 460 is present on the account the TIN is valid if assignment date is prior to TC 460 date.

Determine the total number of eligible dependents for ACTC claimed and enter in Field 94CEV.

Exceptions & meaning →

Note:¶

Include the dependent with a TIN assignment date on or before the extended due date of the return and/or the TC 460 found on IMFOLT

Determine the total number of eligible dependents for ACTC claimed and enter in Field 94CEV.

Exceptions & meaning →

Note:¶

Include the dependent with a TIN assignment date on or before the extended due date of the return and/or the TC 460 found on IMFOLT

TY 2022 return Assignment Date in Field 01PAD>, and Field 01SAD> if FSC 2, is after April 18, 2023

TY 2020 return, Dependent TIN assignment date is after May 17, 2021 and no TC 460 on IMFOLT

TY 2019 return, Dependent TIN assignment date is after July 15, 2020, and no TC 460 on IMFOLT

TY 2018 and prior return TIN assignment date for a child claimed for ACTC is greater than the date in Field T-DAT> and no TC 460 on IMFOLT

All Tax years The TIN assignment date is after the date of a TC 460 found on IMFOLT for the tax year,

Assign TPNC 496 (Form 1040-SS (sp))

Assign TPNC 495 (Form 1040-SS)

o) The taxpayer tries to claim a child who was born after the end of the tax period of the return,

Assign TPNC 493.

TY22 and later - More than four children are claimed for ACTC and one or more qualify for ACTC,

TY20 and prior - More than four children are claimed for ACTC and three or more qualify for ACTC,

Enter the total number of qualified children in Field 94CEV.

TY22 and later - Taxpayer lists less than 1 valid child

Taxpayer lists less than 3 valid children,

Assign TPNC 492.

Assign TPNC 477.

Social security and Medicare tax withheld and one-half of SE tax are used in the calculation of ACTC. For tax years other than TY 2017 follow these additional instructions to resolve EC 344.

Exceptions & meaning →

Note:¶

In response to Hurricane Irma and Maria, special procedures are allowed for TY 2017 returns. Follow the instructions in paragraph (14) below.

Then Form 1040-SS (sp)

Then Form 1040-SS

a) An amount is present in Field 47SSM (TY23 and later, Part II, line 13a; TY22 and prior, Part II line 2),

Documentation must be present to support the amount, such as Puerto Rico Form(s) W-2PR or Form(s) 499R-2. If not present SSPND 215 and use Form 13975 for Letter 2894C.

For PY23 and later use paragraph D,

For PY22 and prior use paragraph E

Documentation must be present to support the amount, such as Puerto Rico Form(s) W-2PR or Form(s) 499R-2. If not present SSPND 215 and use Form 13975 for Letter 2894C.

For PY23 and later use paragraph D,

For PY22 and prior use paragraph E

b) Supporting documentation is present,

Verify the amount in Field 47SSM by adding all supporting documentation.

c) The amount in Field 47SSM is different from supporting documentation,

Adjust the amount in Field 47SSM.

Assign TPNC 395.

Adjust the amount in Field 47SSM.

Assign TPNC 383.

d) The taxpayer incorrectly figured ACTC,

Exceptions & meaning →

Note:¶

For TY 2017 follow the instructions below in paragraph 14

Assign TPNC 395.

Assign TPNC 383.

e) The amount is different from the taxpayer amount, and the return is for TY 2014 and prior with 3 or more qualifying children,

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

TY 2017 Only. Social Security and Medicare tax withheld and one-half of SE tax are used in the calculation of ACTC. Follow these additional instructions to resolve EC 344.

Exceptions & meaning →

Note:¶

See paragraph (15) below for additional information on TY 2017 returns filed for Hurricane Irma or Maria tax relief.

And

a) The computer underprint for Field 03ACT is equal to $1,000 x each qualifying child, and the taxpayer claimed more than this amount,

Assign TPNC 395 (Form 1040-SS (sp)) or TPNC 383 (Form 1040-SS).

b) One or both of these write-ins are present in Part II (page 2):

"PYET" and an amount on the dotted line next to line 2

"PYSET" and an amount on the dotted line next to line 3

Exceptions & meaning →

Note:¶

No documentation to support the 2016 write-in amounts is required.

Use the write-in amount(s) to manually calculate ACTC. ("PYET" is used as the Part II, line 2 amount in the calculation, and "PYSEI" is used as the 1/2 SE tax amount.)

If the calculated amount equals the taxpayer entry in Field 03ACT, enter in Field 94ACV.

If the manual calculation is different from the taxpayer amount in Field 03ACT, then SSPND 440.

Exceptions & meaning →

Note:¶

Lead - If suspended, send the MeF DLN or a copy of the paper return to HQ analyst.

c) "PYET" or "PYSET" isn’t notated, but the taxpayer attached the worksheet for Part II, Line 3 (Line 3 de la Parte II) from the form instructions to the return,

Follow the instructions (1) - (3) above using the amount on line 11 of the attached worksheet for "PYSET" and line 12 for "PYET" in the manual calculation.

d) If "PYET" or "PYSET" is not present, or worksheet is not attached,

Follow the instructions in paragraph (14) above for other tax years.

Hurricane Irma or Maria Disaster Tax Relief. On TY 2017 Form 1040(PR)/SS, bona fide residents of Puerto Rico may elect to use their 2016 Social Security, Medicare, and additional Medicare taxes to calculate ACTC. The taxpayer decides whether using 2016 or 2017 amounts is more beneficial. If using TY 2016, a taxpayer will write "PYET" and the 2016 amounts withheld on the dotted line next to line 2, Part II. No documentation to support the 2016 write-in amount is required. (The taxpayer will also enter the amount from 2017 Form(s) W-2PR or Form(s) 499R-2 directly on line 2.) If using TY 2017 for the ACTC calculation, then the write-in on line 2 won’t be present. If using TY 2016 SE Tax to figure ACTC, the taxpayer will write "PYSET" and an amount on the dotted line of line 3, Part II for 1/2 of their TY 2016 SE Tax. No support is required. The taxpayer may use PY amounts for both line 2 and 3 if applicable.

Exceptions & meaning →

Correction Procedures - EC 344 Form 1040 with an address in Puerto Rico OR Taxpayers…¶

If it appears the taxpayer is a bona fide resident of Puerto Rico (PR) with all income from PR sources ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and the taxpayer isn’t a U.S. government civilian or military employee, see IRM 3.22.3.9.5.2 for correction procedures.

Exceptions & meaning →

Caution:¶

When "PYEI" is zero, then the filer had no earned income to report to the U.S. in TY 2016 and is using Part III of Schedule 8812 to qualify for ACTC with 3 or more qualifying children. Residents of PR may use their TY 2016 Social Security (SST), Medicare, additional SST, and Medicare taxes when completing Part III of Schedule 8812.

Earned Income Excluded under IRC 933. Only taxable earned income (and nontaxable combat pay) is considered “earned income” on line 18a of Schedule 8812 for figuring ACTC. Excluded earned income can’t be used.

If a taxpayer is reporting wages or other earned income on Form 1040 and then excludes the income from U.S. taxation under IRC 933, then compute the earned income and compare to Field 47EI>.

If different, manually compute ACTC with only the taxable (non-excluded) earned income on line 6a of Schedule 8812.

After manually computing ACTC, enter this amount in Field 94ACV. If EC 344 generates, assign appropriate TPNCs as directed in EC 344 of IRM 3.12.3. If the taxpayer incorrectly limited with MAGI, or incorrectly figured earned income on line 18a of Schedule 8812, then assign TPNC 628.

If income on the return isn’t carried forward in the calculation of taxable income, and the taxpayer doesn’t indicate "IRC 933" or similar explanation, then assign appropriate math error notices as required.

Exceptions & meaning →

Correction Procedures - EC 344 All Other U.S. Territory except Puerto Rico - Additional…¶

Taxpayers residing in U.S. territories are generally not entitled to Additional Child Tax Credit (ACTC). Follow the instructions in the If/Then chart below:

And

Then

The taxpayer is from American Samoa (AS),

And excluding income with Form 4563,Exclusion of Income for Bona Fide Residents of American Samoa, under IRC 931,

Follow the instructions for filers from Puerto Rico at IRM 3.22.3.253.3. This income exclusion is treated the same as Puerto Rico exclusions under IRC 933.

Exceptions & meaning →

Exception:¶

AS filers don’t qualify for "PYEI" hurricane tax relief.

The taxpayer claiming ACTC is in the "U.S. military" stationed overseas or in one of the U.S. territories,

Search signature area, Form W-2, and attachments for any of the following indications:

United States Air Force

United States Army

United States Coast Guard

United States Marines

United States Navy

DCPS CIVPAY DIRECTORATE

DFAS - ATTN: Defense Finance and Accounting Service

USAF - Active Duty

DFAS - PMJFC/DE

Commanding Office USCG Human Resources Service Information Center

Meets all the qualifying criteria to claim ACTC,

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 340, for complete instructions to validate ACTC.

Allow the ACTC when the taxpayer qualifies.

The taxpayer is claiming Additional Child Tax Credit,

There is no indication the taxpayer is a US military employee,

Delete the amount in Field 03ACT, Form 1040.

Assign TPNC 461.

Exceptions & meaning →

Correction Procedures - EC 344 Form 1040 - Excluding Income and Claiming Additional…¶

The instructions in this section are for returns that do NOT have an address in a U.S. territory.

Foreign earned income exclusion. Taxpayers who exclude foreign earned income with Form 2555 aren’t eligible for Additional Child Tax Credit (ACTC). If the taxpayer is excluding foreign earned income, the computer underprint for Field 03ACT will be $0. Assign TPNC 306.

Exceptions & meaning →

Exception:¶

Taxpayers excluding foreign earned income in TY 2014 and prior years are eligible for ACTC. Don’t assign TPNC 306 in TY 2014 or prior.

In TY 201412 and prior, taxpayers excluding foreign earned income may claim ACTC, but the computer underprint for Field 03ACT will be $0. Use Publication 972 Child Tax Credit Worksheet in Job Aid 2515-015 or Prior Year (PY) Job Aid 2515-014 to manually compute CTC and ACTC and enter the computed amount from the worksheet into Field 94CDV Form 1040 and Field 94ACV. If the taxpayer figured the credits incorrectly assign TPNC 252.

Exceptions & meaning →

Note:¶

When foreign earned income is excluded, the modified adjusted gross income limitation on Child Tax Credit is determined by adding Form 2555, lines 45 and 50, to line 7 of Form 1040.

All other income exclusions. There are instances where the computer cannot accurately compute ACTC for taxpayers. Follow these instructions if the taxpayer is excluding income on Form 1040 with:

Tax Treaty Exemption - Only taxable earned income (and nontaxable combat pay) is considered "earned income" on line 6a of Schedule 8812 for figuring ACTC. If a taxpayer is reporting wages or other earned income on Form 1040, and then exempting the income from taxation with a valid tax treaty claim, manually compute ACTC using only non-exempt taxable earned income on line 6a and enter the correct amount of ACTC in Field 94ACV. If EC 344 generates assign TPNC 628.

IRC 933 (Puerto Rico) or IRC 931 (Form 4563) Income Exclusions - Refer to the instructions in IRM 3.22.3.253.3.

Don’t correspond for self-employment tax on wage income.

Exceptions & meaning →

Correction Procedures - EC 344 Form 1040-NR Claiming Additional Child Tax Credit¶

Beginning with TY 2018, taxpayers may claim the Child Tax Credit (CTC), the Additional Child Tax Credit (ACTC), and the Credit for Other Dependents (ODC) for qualified dependents on Form 1040-NR. CTC and ACTC is allowed only for dependents who are under 17 years of age and have a Social Security number (SSN). If a dependent claimed for CTC has a valid ITIN, or is over 16 years of age, the computer amount for the combined Child Tax and Other Dependents Credit is calculated by disallowing CTC but allowing ODC for that dependent.

The TY 2022 maximum ACTC credit amount for a qualifying child is $1,500. The TY 2018 and later maximum ACTC credit amount for a qualifying child is $1,400. The maximum credit amount for TY 2017 and prior is $1,000.

Follow the procedures in IRM 3.12.3, EC 344, for modified AGI limitations, earned income, and Social Security and Medicare taxes errors. Assign TPNCs as directed in the instructions for these types of errors. Don’t correspond for self-employment tax on wage income.

Exceptions & meaning →

Note:¶

If a taxpayer is reporting wages or other earned income on Form 1040-NR, and then exempting the income from taxation with a valid tax treaty, manually compute ACTC using only non-exempt taxable earned income on line 6a and enter the correct amount of ACTC in Field 94ACV. If EC 344 generates assign TPNC 383

Form 1040-NR may be filed only by an individual taxpayer who is the primary in Field 01PS. On a PY return, the Taxpayer Identification Number (TIN) for a spouse claimed as an exemption on Form 1040-NR doesn’t affect the calculation of Additional Child Tax Credit (ACTC).

Follow the procedures in EC 287 at IRM 3.22.3.216.2 to determine the number of qualified dependents for CTC and ODC and to identify the errors related to TIN validation of the primary and dependents. For prior year returns use IMFOLT to check for a TC 460 on the tax year. If the TC 460 is present the TIN assignment date must be prior to the TC 460 date to be valid for the tax year. Assign TPNCs as follows when ACTC is claimed on Form 1040-NR.

Then

a) Child disallowed because the taxpayer isn’t allowed dependents based on country of residence (see EC 287 at IRM 3.22.3.216.2),

TY 2018 and later, assign TPNC 412

TY 2017 and prior, assign TPNC 423

b) Primary TIN is invalid or missing,

Exceptions & meaning →

Note:¶

Enter RPC O

TY 2018 and later, assign TPNC 421

TY 2017 and prior, assign TPNC 452

c) Primary ITIN Status Code Indicator is "I" ,

TY 2018 and later, assign TPNC 323

TY 2017 and prior, assign TPNC 318

TY 2022 Primary TIN assignment date is after the date in Field T-DAT>, but on or before April 18, 2023

TY 2020 Primary TIN assignment date is after the date in Field T-DAT>, but on or before May 17, 2021

TY 2019 Primary TIN assignment date is after the date in Field T-DAT>, but on or before July 15, 2020

Exceptions & meaning →

Note:¶

If TC 460 is present on the account the TIN is valid if assignment date is prior to TC 460 date.

Determine the total number of eligible dependents for CTC claimed and enter in Field 94CEV and total number of eligible dependents for ODC claimed and enter in Field 94DEV.

Exceptions & meaning →

Note:¶

If TC 460 is present on the account the TIN is valid if assignment date is prior to TC 460 date.

TY 2022, Primary TIN assignment date is after April 18, 2023

TY 2020, Primary TIN assignment date is after May 17, 2021,

TY 2019, Primary TIN assignment date is after July 15, 2020

TY 2018 and prior, Primary TIN assignment date is after the return due date,

Exceptions & meaning →

Note:¶

If TC 460 is present on the account the TIN is valid if assignment date is prior to TC 460 date.

TY 2018, assign TPNC 497

TY 2017 and prior, assign TPNC 495

Exceptions & meaning →

Caution:¶

If TC 460 is present on the account the TIN is valid if assignment date is prior to TC 460 date.

f) TIN for a child claimed for CTC is missing or invalid,

TY 2018 and later, assign TPNC 422

TY 2017 and prior, assign TPNC 605

g) TY 2018 and later- Child has a valid ITIN, and the underprint for Field 03COD is blank,

Assign TPNC 425

Exceptions & meaning →

Note:¶

If TPNC 250 was assigned at EC 290 for this TIN, then ripple at EC 340 and don’t send TPNC 425.

h) ACTC is claimed for a dependent with Dependent ITIN Status Code "I" ,

TY 2018 and later, assign TPNC 425

TY 2017 and prior, assign TPNC 317

TY 2022 Dependent TIN assignment date is on or before April 17, 2023

TY 2020 Dependent TIN assignment date is after the date in Field T-DAT>, but on or before May 17, 2021

TY 2019 Dependent TIN assignment date is after the date in Field T-DAT>, on or before July 15, 2020,

TY 2018 and prior Dependent TIN Assignment date is after the return due date

Exceptions & meaning →

Note:¶

If TC 460 is present on the account the TIN is valid if assignment date is prior to TC 460 date.

Determine the total number of eligible dependents for CTC claimed and enter in Field 94CEV and total number of eligible dependents for ODC claimed and enter in Field 94DEV.

Exceptions & meaning →

Note:¶

If TC 460 is present on the account the TIN is valid if assignment date is prior to TC 460 date.

TY 2022, Dependent TIN assignment date is after April 18, 2023

TY 2020, Dependent TIN assignment date is after May 17, 2021,

TY 2019, Dependent TIN assignment date is on or before July 15, 2020

TY 2018 and prior, Primary TIN assignment date is after the return due date,

Exceptions & meaning →

Note:¶

If TC 460 is present on the account the TIN is valid if assignment date is prior to TC 460 date.

TY 2018 and later, assign TPNC 497

TY 2017 and prior, assign TPNC 495

Exceptions & meaning →

Note:¶

If TC 460 is present on the account the TIN is valid if assignment date is prior to TC 460 date.

k) For TY 2017 and prior for each dependent claimed for CTC/ACTC with an ITIN, must have the substantial presence test check box checked as “yes” on Schedule 8812 to qualify them dependent for the credit. If you determined that a dependent failed the substantial presence test and is ineligible for the Child Tax Credit and/or Additional Child Tax Credit

TY 2017 and prior, disallow the dependent with Field 94CEV

Assign TPNC 465

l) Child is over 16 years of age,

Assign TPNC 251

m) The taxpayer made a math error in calculating ACTC,

Assign TPNC 383

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 344¶

The following TPNCs are used for EC 344.

TPNC

Literal

Any previously assigned TPNC.

100

101

We refigured your tax using the single filing status (Form 1040)

102

We refigured your tax using the married filing jointly filing status (Form 1040)

103

We refigured your tax using the married filing separately filing status (Form 1040)

104

We refigured your tax using the head of household filing status (Form 1040)

105

We refigured your tax using the qualified surviving spouse filing status based on the information you reported (Form 1040)

108

Your return was filed using the head of household filing status. The name of the dependent that qualifies you for the head of household filing status was not present (Form 1040)

176

The amount on the bottom of page 1 and the top of page 2 must be the same (Form 1040)

177

We changed the amount claimed as medical and dental expenses on your Schedule A (Form 1040)

178

We changed the amount claimed as taxes you paid on your Schedule A (Form 1040)

179

We changed the amount claimed as total interest paid on your Schedule A, itemized deductions (Form 1040)

180

We changed the amount claimed as total gifts to charity on your Schedule A, itemized deductions (Form 1040)

182

We changed the amount claimed as casualty and theft losses on your Schedule A (Form 1040)

183

We changed the amount claimed as total miscellaneous deductions on your Schedule A (Form 1040)

184

We changed your gambling losses claimed on your Schedule A, Itemized Deductions, to equal your gambling winnings. You must report the full amount of your winnings as income on Form 1040 and claim your losses up to the amount of winnings as an itemized deduction on Schedule A, Itemized Deductions. (Form 1040)

185

We changed your Schedule A, itemized deductions. Some or all of your other miscellaneous deductions claimed on your Schedule A were subject to the 2 percent limitation. (Form 1040)

186

We limited your total itemized deductions on your Schedule A, Itemized Deductions, because certain deductions on Schedule A are limited if your adjusted gross income is more than the maximum amount. (Form 1040)

187

Computed or transferred Itemized Deductions incorrectly.

188

We changed the amount claimed as standard deduction on your tax return. We used the total deductions reported on Schedule A, Itemized Deductions, attached to your tax return rather than the standard deduction. When your filing status is Married Filing Separately and your spouse itemizes deductions on Schedule A, you must also itemize. (Form 1040)

189

We changed the amount claimed as standard deduction on your tax return. We used the total deductions reported on Schedule A, Itemized Deductions, attached to your tax return rather than the standard deduction. This resulted in a lower taxable income. (Form 1040)

190

We recomputed your taxable income using the Standard Deduction. Your remaining Total Itemized Deduction was less than the Standard Deduction. (Form 1040)

192

We changed the amount claimed as standard deduction on your tax return. You are entitled to a higher standard deduction if you and/or your spouse are age 65 or older and/or blind. (Form 1040)

193

We didn’t allow the amount claimed as standard deduction on your tax return. When your filing status is Married Filing Separately and your spouse itemizes deductions on Schedule A, Itemized Deductions, you must also itemize. Information on your tax return indicates that your spouse itemized deductions; therefore, we used zero as your deduction amount.

Exceptions & meaning →

Note:¶

If you have itemized deductions you may file Form 1040-X, Amended U.S. Individual Income Tax Return, and include them on Schedule A, Itemized Deductions, to reduce your tax

194

We changed the amount claimed as standard deduction on your tax return:

no amount was entered for the standard deduction, or

the amount entered for standard deduction was incorrect for the filing status claimed on your return. (Form 1040).

196

We changed the amount claimed as a deduction on your tax return. You may use either the standard deduction or itemized deductions; however, you cannot use both. We used the amount that resulted in a lower taxable income.

199

We changed the amount claimed on your tax return because there was an error in the subtraction of your standard deduction or itemized deductions from your adjusted gross income (Form 1040)

200

We changed your total exemption amount based on the information you listed on Lines 6a - 6c. (Form 1040)

201

You didn't limit your exemptions correctly. You are required to apply the limit because of your AGI and filing status.

202

We didn’t allow your personal exemption on your tax return. Information on your tax return indicates that you are being claimed as a dependent on another person’s tax return. (Form 1040)

203

We increased the number of exemptions on your tax return and lowered your tax. You indicated that you and/or your spouse were claimed on another person’s tax return (Form 1040)

204

We didn’t allow the exemption for your spouse on your tax return. You can’t use single or head of household filing status and claim your spouse as an exemption (Form 1040)

205

We didn’t allow your personal exemption

SSN or ITIN was missing or

Last name doesn’t match

206

We didn’t allow your spouse’s personal exemption because your spouse’s:

Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) was missing or

Last name doesn’t match our records or the records provided by the Social Security Administration. Each exemption listed on your tax return must have a valid SSN or ITIN. (Form 1040)

208

We changed the amount of taxable income because there was an error in the subtraction of your exemption or combined standard deduction/exemption amount.

209

We changed the amount of tax shown on your return. The amount entered was incorrect based on your taxable income and filing status.

211

We changed the amount of tax shown on your return. The tax rates on Qualified Dividends and Capital Gains are generally lower than the standard rates.

218

We computed your tax for you.

231

We didn’t allow part or all of the amount claimed as foreign tax credit on your tax return. Foreign tax credit is limited to the total amount of your tentative minimum tax liability.

233

We didn’t allow the amount claimed as credit for child and dependent care expenses on your tax return. (Form 1040)

234

We didn’t allow the amount claimed as credit for child and dependent care expenses on your tax return. The Social Security number, Employer Identification Number, or Individual Taxpayer Identification Number for your childcare provider was not included as required on line 1 of Form 2441/Schedule 2, Child and Dependent Care Expenses. (Form 1040)

235

We didn’t allow the amount claimed as credit for child and dependent care expenses on your tax return. The name and Social Security number or Individual Taxpayer Identification Number for the child or dependent who qualifies you for the credit was not provided on line 2 of Form 2441/Schedule 2, Child and Dependent Care Expenses. (Form 1040)

236

Disallowed credit for prior-year expenses on Form 2441. Missing dependent name, SSN, or statement showing how you figured the credit. (Form 1040)

237

Computed or transferred the Part III amount on Form 2441 incorrectly. (Form 1040)

238

Disallowed credit for child and dependent care because primary taxpayer, spouse, or dependent claimed as care provider. (Form 1040)

240

We changed the amount claimed as credit for the elderly or the disabled on your tax return (Form 1040)

243

We changed the amount claimed as education credits on your tax return (Form 1040)

246

Disallowed all or part of your Retirement Savings Contribution Credit. The credit is not allowed if you are not at least 18 years of age.

247

Computed or transferred Form 8880 incorrectly.

249

250

We didn’t allow all or part of the nonrefundable Child Tax Credit claimed on your return. One or more of the dependents listed on your return exceeds the age limit to be a qualifying child, or the child’s Social Security number (SSN) was missing. If you claimed the refundable Child Tax Credit or additional Child Tax Credit, it may also be affected.

251

Disallowed part or all of your child tax credit and/or additional child tax credit. One or more of your children exceeds the age limitation.

252

You incorrectly figured your child tax credit.

254

Computed or transferred Form 8839 incorrectly. (Form 1040)

260

We changed the amount claimed as other credits there was an error on Form 3800, General Business Credits. The error was in the:

Computation of the 3800 credit.

Computation of the credit on Form 8826.

Computation of the credit on Form 8881.

Transfer of that amount to your tax return.

265

We changed the amount on your tax return because there was an error in the subtraction of your credits from your tax.

552

We didn’t allow the amount claimed as casualty or theft losses on Schedule A (Form 1040)

553

We didn’t allow the amount claimed as unreimbursed employee expenses on Schedule A (Form 1040)

554

We refigured your taxable income on your tax return using the standard deduction (Form 1040)

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

563

We didn’t allow the amount claimed as credit for child and dependent care expenses on your tax return. Form 2441, Child and Dependent Care Expenses, was incomplete or not attached to your tax return (Form 1040)

565

We didn’t allow the amount claimed as credit for the elderly or disabled (Form 1040)

568

We didn’t allow the amount claimed as education credits on your tax return (Form 1040)

569

We didn’t allow the amount claimed as retirement savings contribution credit (Form 1040)

598

We changed the amount of exemption claimed on your return for your child that didn’t live with you. Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, or Form 2120, Multiple Support Declaration or a copy of a divorce decree showing your right to claim an exemption was incomplete or not attached to your tax return. This change may affect your taxable income, tax, or any of the following credits: Education Credit, Child Tax Credit or Additional Child Tax Credit. (Form 1040)

605

For one or more of your dependents the SSN or ITIN was missing or the last name doesn’t match our records or the records provided by the Social Security Administration.

606

Disallowed the exemption claimed for any dependent born after December 31 of the tax year of the return you filed.

607

We didn’t allow the exemption for the primary taxpayer claimed on your tax return. According to the records, the Social Security number belongs to a deceased person.

608

We didn’t allow the exemption for the spouse claimed on your tax return. According to the records, the Social Security number belongs to a deceased person.

609

We didn’t allow the exemption for a dependent claimed on your tax return. According to the records, the Social Security number belongs to a deceased person.

628

We changed the amount claimed as Child Tax Credit and/or Additional Child Tax Credit on your tax return because there was an error on Schedule 8812, Child Tax Credit. The error was in the:

computation of the credit on Schedule 8812

transfer of the amount to your tax return and/or

Schedule 8812 was missing or incomplete (Form 1040)

642

We didn’t allow your personal exemption on your tax return because your individual taxpayer identification number (ITIN) has expired. Each exemption on your tax return must have a valid ITIN or other valid taxpayer identification number (TIN).

643

We didn’t allow your spouse’s personal exemption on your tax return because your spouse’s individual taxpayer identification number (ITIN) has expired. Each exemption on your tax return must have a valid ITIN or other valid taxpayer identification number (TIN).

646

706

707

708

One or more of the dependents listed on your tax return was born after December 31st of the tax year for the return you filed. As a result, we disallowed certain credits claimed on your return.

TPNC

Literal

306

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

317

Each exemption on your tax return must have an active individual taxpayer identification number (ITIN) or other valid taxpayer identification number (TIN). One or more of your dependents has an inactive ITIN. As a result, we didn’t allow those exemptions on your tax return. This change may affect your taxable income, tax, or any of the following credits:

Credit for child and dependent care expenses

Child tax credit

Additional child tax credit

318

Credit for child and dependent care expenses

Child tax credit

Additional child tax credit

319

The Individual Taxpayer Identification Number (ITIN) for you and/or your spouse has expired. As a result, we disallowed the amount you claimed as additional child tax credit on your return. (Form 1040-SS (sp))

320

322

323

Your individual taxpayer identification number (ITIN) has expired. As a result, we disallowed certain credits claimed on your return. (Form 1040-NR)

332

We didn't allow the amount claimed as additional child tax credit because supporting documents were not attached to your tax return. (1040-SS)

339

We didn't allow part or all of your additional child tax credit on your Form 1040-SS. One or more of your children exceeds the age limitation. (1040-SS)

345

We didn't allow the amount claimed as excess Social Security tax or tier 1 RRTA withheld because Form(s) W-2AS, W-2CM, W-2GU, W-2VI, or Form 499R-2/W-2PR was not attached to your tax return. (1040-SS)

361

We changed the amount claimed as excess social security tax withheld or tier 1 RRTA withheld.

Corregimos la cantidad reclamada de la retención en exceso de la contribución del seguro social o lo dispuesto en la retención del RRTA 1, en la página 1 de su planilla de contribución debido a un error del cómputo. (1040-SS (sp))

362

We didn't allow the amount claimed as additional child tax credit Form(s) 499R-2, W-2PR or other supporting documents were not attached to your tax return. No le concedimos la cantidad reclamada como crédito contributivo adicional por hijo porque la/las Forma(s) 499R-2, W-2PR u otros comprobantes no fueron incluídos en su planilla de contribución. (1040-SS (sp))

369

We didn't allow part or all of your additional child tax credit. One or more of your children exceeds the age limitation.

No le concedimos parte o todos sus créditos contributivos adicionales por hijo en la Línea 8 de su Forma 1040-SS (sp). Uno o más de sus hijos excede la limitación de edad. (1040-SS (sp))

374

We changed the refund or amount you owe based on the information you provided in response to our previous correspondence.

Corregimos su contribución basado en la información que usted proveyó en la contestación a nuestra correspondencia anterior.

383

You incorrectly figured your Additional Child Tax Credit. We have adjusted your return accordingly. (Form 1040-NR and Form 1040-SS)

395

We changed the amount claimed as additional child tax credit on your Tax return because there was an error. The error was in the: Computation of the credit on page 2 of your tax return and/or Transfer of that amount to page 1 of your tax return.

Le ajustamos la cantidad reclamada del crédito contributivo por hijo adicional en su planilla de contribución porque hubo un error. El error era en: El cómputo del crédito en la página 2 de su planilla contributiva, y/o La transferencia de esa cantidad a la página 1 de su planilla contributiva. (Form 1040-SS (sp))

405

We changed the amount claimed for Charitable Contribution Deduction as an Adjustments to Income on your tax return. This deduction is only allowed to certain residents of India. (Form 1040-NR)

412

Your country of residence does not allow you to take exemptions for dependents. As a result, we disallowed certain credits claimed on your return.(Form 1040-NR)

418

You aren’t entitled to the standard deduction when you file Form 1040-NR. We changed your return accordingly.

421

422

423

Because your country of residence does not allow you to take exemptions for dependents, we have disallowed your child tax credit. (Form 1040-NR)

425

449

We changed the amount of taxable income on your tax return because the exemption amount was subtracted incorrectly. (Form 1040-NR)

452

Your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) was missing or the last name provided doesn’t match our records or the records provided by the Social Security Administration. As a result, we disallowed certain credits on your return claimed for one or more of your dependents. This change may affect your taxable income, tax, or any of the following credits:

Child tax credit

Additional child tax credit

453

Your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) was missing or the last name provided doesn’t match our records or the records provided by the Social Security Administration. As a result, we disallowed the amount you claimed as additional child tax credit on your return. (Form 1040-SS (sp))

454

Your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) was missing or the last name provided doesn’t match our records or the records provided by the Social Security Administration. As a result, we disallowed the amount you claimed as additional child tax credit on your return. (Form 1040-SS)

457

We changed your total exemption amount. There was an error in the computation of your total exemption amount. (Form 1040-NR)

460

We didn’t allow all or part of the amount your claimed as additional child tax credit on your Form 1040-SS because the required Social Security number (SSN) is missing for one or more of the dependents you listed on the return. Nosotros no aprobamos toda o parte de la cantidad que usted reclamó como crédito contributivo adicional por hijos en su Formulario 1040-SS (sp), porque en su planilla falta el número de seguro social (SSN, por sus siglas en inglés) requerido para uno o más de sus dependientes reclamados.

461

We did not allow the amount of Additional Child Tax Credit claimed on your tax return. Information on your return indicates that you do not qualify for this credit.

464

We didn’t allow some or all of the amount you claimed as additional child tax credit on line 9 of your Form 1040-SS because the individual taxpayer identification number (ITIN) for one or more the qualifying persons has expired. (Form 1040-SS)

No permitimos parte o toda la cantidad que usted reclamó como crédito tributario adicional por hijos, en la línea 9 de su Formulario 1040-SS (sp), porque el número de identificación del contribuyente individual (ITIN) de una o más personas calificadas ha vencido. (Form 1040-SS (sp))

465

474

You figured your refund or the amount you owe incorrectly on Form 1040-SS.

475

Your Additional Child Tax Credit was reduced or not allowed because your dependent child's TIN was missing.

476

Your Additional Child Tax Credit was reduced or not allowed because your dependent child's name and/or TIN were invalid.

477

We didn't allow the additional child tax credit you claimed because you must have three or more qualifying children to claim the credit. (Form 1040-SS)

490

Your Additional Child Tax Credit was reduced or not allowed because your child's TIN was missing.

Credito de Impuesto por Hijo(a) Adicional fue reducido o no fue permitido porque faltaba el TIN de su hijo(a) dependiente. (Form 1040-SS (sp))

491

Your Additional Child Tax Credit was reduced or not allowed because your dependent child's name and/or TIN were invalid.

Su Credito de Impuesto por Hijo(a) Adicional fue reducido o no fue permitido porque el TIN de su hijo(a) dependiente era invalido. (Form 1040-SS (sp))

492

We can't allow the additional child tax credit you claimed. You must have three or more qualifying children to claim the credit.

No podemos permitirle el credito del impuesto por hijo(a) adicional que usted reclamo. Usted debe tener tres o mas hijos califcativos para poder reclamar el credito. Por lo tanto, le hemos ajustado su planilla de contribucion. (Form 1040-SS (sp))

493

We reduced or disallowed your additional child tax credit because one or more of the children listed was born after the current tax period.

Nosotros redujimos o le desaprobamos su credito adicional de impuesto por hijo, porque uno o mas de sus hijos que usted menciono nacio o nacieron despues del period contributivo actual. Por eso, el o ella no son elegibles para este credito. Por lo tanto, le hemos ajustado su planilla de contribucion. (Form 1040-SS (sp))

495

We didn’t allow the amount you claimed as child tax credit or additional child tax credit on your tax return because you, your spouse, or one or more of your dependents claimed for the credit did not have a taxpayer identification number assigned by the due date of the tax return. (Form 1040-SS)

496

No permitimos la cantidad que reclamó como crédito tributario adicional por hijos en la línea 9 de su Formulario 1040-SS (sp). Usted, su cónyuge o uno o más de sus dependientes reclamados para el crédito, no tenía un número de identificación del contribuyente asignado para la fecha de vencimiento de la planilla de contribución. (Form 1040-SS (sp))

497

Exceptions & meaning →

Note:¶

Whenever there is not a specific TPNC to address the invalid condition for this Error Code on Form 1040-SS (sp), assign TPNC 395.

Exceptions & meaning →

Note:¶

The above literals are abbreviated. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, Taxpayer Notice Codes for complete literal for Domestic TPNCs and see Exhibit 3.22.3-9 for complete literal for International TPNCs.

Exceptions & meaning →

Error Code 347 - Refundable American Opportunity Credit¶

For International Form 1040, refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 347 for invalid conditions, correction procedures and allowable TPNCs

The taxpayer must use Modified Adjusted Gross Income (MAGI) to figure the credit when excluding:

Foreign earned income from Form 2555

IRC 933 Puerto Rico income

The following TPNCs are used for EC 352.

TPNC

Literal

Any previously assigned TPNC

100

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

401

We didn't allow the exemption(s) for your other dependent(s). As a nonresident alien, you are only allowed an exemption for yourself.

402

We didn't allow the exemption for your other dependent(s). Residents of South Korea cannot claim an exemption for other than self, spouse or child (children) who lived with them in the United States. (Form 1040-NR)

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

605

For one or more of your dependents the SSN or ITIN was missing or the last name doesn’t match our records or the records provided by the Social Security Administration.

794

We didn’t allow the amount you claimed as net premium tax credit on your tax return because Form 8962, Premium Tax Credit, was incomplete or not attached to your tax return.

Exceptions & meaning →

Error Code 353 - Form 8962 Premium Tax Credit Claimed, Not Eligible¶

EC 353 generates when Tax Period is 201412 or later and the taxpayer claims Reconciled Net Premium Tax Credit but is ineligible when:

FSC 3 or 6 and Married Filing Separate PTC Exception Checkbox Indicator, Field 73MFS, is not marked, or

Computed Household Income (HHI) percentage, Field 7305>, is over 400 percent, when the Tax Period is 201412 through 202012,

Exceptions & meaning →

Note:¶

For tax years after 2020, a taxpayer may be eligible to claim the Premium Tax Credit when the computed Household Income (HHI) percentage, Field 7305> exceeds 400 percent.

No exemptions are claimed on the return in Field 01EXC/94EXV.

See IRM 3.12.3, Error Resolution, Individual Income Tax Returns, for screen display and correction procedures.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 353¶

The following TPNCs are used for EC 353.

TPNC

Literal

Any previously assigned TPNC.

205

Your SSN or name does not match the records provided by the Social Security Administration. As a result, we did not allow your personal exemption.

206

We did not allow your personal exemption for your spouse. The SSN and/or name of your spouse is missing or does not match the records provided by the Social Security Administration. (Form 1040)

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

401

We didn't allow the exemption(s) for your other dependent(s). As a nonresident alien, you are only allowed an exemption for yourself.

402

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

605

For one or more of your dependents the SSN or ITIN was missing or the last name doesn’t match our records or the records provided by the Social Security Administration.

762

790

791

We didn’t allow the amount claimed as net premium tax credit on line 24 of Form 8962, Premium Tax Credit. You're not eligible to claim the credit because your household income is greater than 400 percent of the federal poverty line

792

We didn’t allow the amount claimed as net premium tax credit on line 24 of Form 8962, Premium Tax Credit. You're not eligible to claim the credit because you didn’t claim any dependents on your return.

795

We changed the amounts on your Form 8962, Part II, to match the Form 1095-A record we received from the Health Insurance Marketplace. We have adjusted your return accordingly.

Exceptions & meaning →

Error Code 354 - Premium Tax Credit¶

EC 354 generates when the Tax Period is 201412 or later and the taxpayer amount for Reconciled Premium Tax Credit Amount differs from the Computed Net Premium Tax Credit.

See IRM 3.12.3, Error Resolution, Individual Tax Returns, EC 354, for screen display and correction procedures.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 354¶

The following TPNCs are used for EC 354.

TPNC

Literal

Any previously assigned TPNC.

205

Your SSN or name does not match the records provided by the Social Security Administration. As a result, we did not allow your personal exemption.

206

We did not allow your personal exemption for your spouse. The SSN and/or name of your spouse is missing or does not match the records provided by the Social Security Administration. (Form 1040)

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

401

We didn't allow the exemption(s) for your other dependent(s). As a nonresident alien, you are only allowed an exemption for yourself.

402

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

605

For one or more of your dependents the SSN or ITIN was missing or the last name doesn’t match our records or the records provided by the Social Security Administration.

762

788

We changed the net Premium Tax Credit on your return because you made one of the following errors on Form 8962, Premium Tax Credit:

computation of Part 2 - Premium Tax Credit Claim and Reconciliation of Advance Payment of Premium Tax Credit

transfer of that amount to your tax return.

795

We changed the amounts on your Form 8962, Part II, to match the Form 1095-A record we received from the Health Insurance Marketplace. We have adjusted your return accordingly.

Exceptions & meaning →

Error Code 356 - Fuel Tax Credit¶

EC 356 generates when Fuel Tax Credit differs from Fuel Tax Credit Computer, a math error is present and Balance Due/Overpayment differs from Balance Due/Overpayment Computer amount.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 356 for screen displays, invalid conditions and for correction procedures and allowable TPNCs.

Exceptions & meaning →

Error Code 358 - Form 2439 and Form 8885 Credits, and Write-in Credits (and Prior Year…¶

If the taxpayer indicates that the credit amount on the dotted line next to Line 33 of Form 1040, or line 13 of Schedule 3, is for Form 8689 then follow the instructions in EC 364 IRM 3.22.3.263.2.2.

For other write-in credits on line 12, Schedule 3 of Form 1040, or Form 1040-NR, refer to the instructions in IRM 3.12.3, Line 12d, Write-in Credit (EC 358). For TY17, If corresponding for IRC 965 Transition Statement on Form 1040 or Form 1040-NR, use fill-in paragraph B from Exhibit 3.22.3-12 on Form 13900, and suspend with AC 215. For TY18 and later, if corresponding for Form 965-A on Form 1040 or Form 1040-NR, use any paragraphs from Y through 0 on Form 13900, and suspend with AC 215.

For Form 8885 credits on Form 1040-SS (sp) or Form 1040-SS see EC 366 at IRM 3.22.3.264.5.3.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 358, for invalid conditions and correction procedures.

Exceptions & meaning →

Fields Displayed-EC 358¶

The following fields are displayed for EC 358.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

04HID

Self Employed Health Insurance Deduction

05RIC

Form 2439 Regulated Investment Company Credit

05EYR

Credit For Earlier Year Income Repayment

05OTH

Other Payment or Credit Amount (ERS only)

05TYP

Other Payment or Credit Type Code(ERS only)

05OPR

Total Other Payments and Refundable Credits

221BI

Form 7207 Net Elective Payment Election Amount

221DI

Form 3468 Part III Net Elective Payment Election Amount

221GI

Form 7210 Net Elective Payment Election Amount

231XI

Form 8933 Net Elective Payment Election Amount

94OPV

Total Other Payments and Refundable Credits Verified Amount

S22NP

Section 22 Not Present

S23NP

Section 23 Not Present

S73DP

Section 73 Data Present

S76DP

Section 76 Data Present

76TOT

Total Deferred Tax Liability Amount

Exceptions & meaning →

Correction Procedures Health Coverage Tax Credit (Form 8885) on Form 1040 and Form 1040-NR¶

For TY 22 Form 8885 is historical and line 13c, Schedule 3 is reserved. Taxpayers claim the Health Coverage Tax Credit (HCTC) for TY21 on line 13c, Schedule 3 (TY20, line 12c, Schedule 3; TY19, by checking box c, line 69 on Form 1040-NR).

For TY 2015 and later, follow the procedures for Schedule 3, line 13c (TY20, Schedule 3, line 12c; TY19, line 13, box c) for Form 8885 in IRM 3.12.3, EC 358. To request missing items SSPND 215 and use Letter 4087C. Select these paragraphs on Form 13900:

Form 8885 is missing - any paragraph Y through 0(zero)

Taxpayer didn’t check any boxes in Part I, line 1 - paragraph 9

Proof of eligibility and/or invoices/proof of payment missing - paragraph 7

Exceptions & meaning →

Note:¶

Don’t use AC 213 on international returns.

Tax Year 2014 and prior - Follow the instructions in EC 358 in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, Prior Year (EC 358).

Exceptions & meaning →

Error Code 360 - Refundable Payments or Credits Verification¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 360 for invalid conditions, correction procedures, and allowable TPNCs for Form 1040 and Form 1040-NR.

Exceptions & meaning →

Note:¶

Other Payment or Credit Type "S" is for credits from Form 1042-S on Form 1040. See instructions in EC 366 IRM 3.22.3.264.3.4 if withholding is claimed on Form 1040 from Form 1042-S.

If the taxpayer writes "Form 8689" , indicating a credit from Form 8689, Allocation of Income Tax paid to the U.S. Virgin Islands (USVI), on the dotted portion of line 33 (TY19, line 19), Form 1040, or on Schedule 3, line 15 (TY20, line 13; TY19, line 14), refer to EC 364 at IRM 3.22.3.263.2.2

Exceptions & meaning →

Fields Displayed EC 360 - Form 1040-NR¶

The following fields are displayed for EC 360.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01FSC

Filing Status Code

01SPC

Special Processing Code

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

05OTH

Other Payment or Credit Amount (ERS only)

05TYP

Other Payment or Credit Type Code(ERS only)

05OPR

Total Other Payments and Refundable Credits

03PAY

Total Payments

Total Payments Computer

S17NP

Section 17 Not Present

S44NP

Section 44 Not Present

Exceptions & meaning →

Error Code 364/664 - Refundable Credits¶

EC 364 generates on Form 1040 and on Form 1040-NR for TY 2020 and later only.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 364, for invalid conditions, and refer to both IRM 3.12.3 and IRM 3.22.3 for correction procedures and allowable TPNCs.

Also, refer to EC 366/666, at IRM 3.22.3.264 for additional correction procedures.

Exceptions & meaning →

Fields displayed - EC 364¶

The following fields are displayed for EC 364.

1040-NR

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01CCC

Computer Condition Code

01RPC

Return Processing Code

01SPC

Special Processing Code

03ACT

Additional Child Tax Credit

Additional Child Tax Credit Computer

03RAC

Refundable Adoption Credit

03RAC>

Refundable Adoption Credit Computer

03ESP

Estimated Tax Payments

05PTC

Reconciled Premium Tax Credit

05PTC>

Computer Reconciled Premium Tax Credit

05EXT

Form 4868 Credit

05ESS

Excess Social Security

05FUE

Fuel Tax Credit, Form 4136

Fuel Tax Credit Computer

05RIC

Form 2439 Regulated Investment Company Credit

05OTH

Other Payment or Credit Amount (ERS only)

05TYP

Other Payment or Credit Type (ERS only)

05DHS

Deferred Taxes Schedule H-Schedule SE

05OPR

Total Other Payments and Refundable Credits

0329

Form 1040C Credit

03RCR

Refundable Credits

Refundable Credits Computer

03PAY

Total Payments

Total Payments Computer

Exceptions & meaning →

Correction Procedures - EC 364 Refundable Credits - Form 1040¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 364 for additional correction procedures.

Exceptions & meaning →

Note:¶

Do Not SSPND.

b) Claims excess SST or RRTA,

The taxpayer had more than one employer, and the combined amount exceeds the maximum amount ($10,453.20),

Verify the entry by combining all Form(s) W-2.

Exceptions & meaning →

Caution:¶

If married filing jointly, each individual taxpayer must meet all criteria. When computing excess SST withheld, ADD Form W-2, Form W-2AS, Form W-2CM, Form W-2GU, Form W-2VI. or Form 499R-2 W-2PR for primary and secondary taxpayersseparately.

If the amount claimed is computed correctly allow the credit and enter the amount in Field 05ESS.

c) Incorrectly figured the amount of excess SST/RRTA,

Enter the correct amount in Field 94ESV.

Assign TPNC 294.

Exceptions & meaning →

Form 8689 - Allocation of Income Tax to the U.S. Virgin Islands¶

If the taxpayer writes "Form 8689" , indicating a credit from Form 8689, Allocation of Individual Income Tax to the USVI, on the dotted portion of line 33 (TY19, line 19), Form 1040, or on Schedule 3, line 13 (TY19, line 14), follow the instructions below:

And

Then

line 25d (TY19, line 17) Form 1040 includes withholding from Form W-2VI or other VI sources,

Disallow the amount and adjust Field 03WH.

Assign TPNC 438.

Form 8689 is attached,

Add lines 41 and 46 of Form 8689 (TY 19, add lines 40 and 45 of Form 8689). The amount claimed for the 8689 credit cannot excede the amount of Total Tax in Field 03TAX of Form 1040. If the total of lines 41 and 46 on Form 8689 is less than or equal to Field 03TAX enter the amount in Field 05OTH and 05OPR and enter "8" in Field 05TYP.

If the total of lines 41 and 46 of Form 8689 exceeds the amount of Total Tax in Field 03TAX Form 1040 then reduce the Form 8689 credit to equal the amount of Total Tax. Enter the reduced amount in Field 05OTH and 05OPR and enter 8 in Field 05TYP. Assign TPNC 341.

If the amount is different from the amount on the dotted portion of line 33 (TY19, line 19), Form 1040, or Schedule 3, line 13 (TY19, line 14), assign TPNC 364 if EC 366 generates:

Exceptions & meaning →

Note:¶

Do not verify if the amounts are correct on Form 8689.

Form 8689 is not attached,

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Enter the amount in Field 05OTH and 05OPR and enter "8" in Field 05TYP.

Exceptions & meaning →

Caution:¶

Before entering the amount in Field 05OTH, verify that the withholding on line 25d (TY19, line 17) does not include withholding paid to the USVI (Form W-2VI)

Form 8689 is not attached,

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

SSPND 215

Exceptions & meaning →

Caution:¶

Before entering the amount in Field 05OTH, verify that the withholding on line 25d (TY19, line 17) does not include withholding paid to the USVI on Form W-2VI or any other USVI source.

Exceptions & meaning →

Correction Procedures - EC 364 - Form 1040-NR (TY 2020 and later)¶

Form 1040-NR filers are not eligible for the Recovery Rebate Credit (RRC). If the taxpayer has requested Recovery Rebate Credit on Form 1040-NR by writing-in an amount for RRC do not allow the credit and send TPNC 263.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 364 for additional correction procedures.

Exceptions & meaning →

Caution:¶

DO NOT ASSIGN a TPNC for this issue.

b) The taxpayer who is an "F" , "J," "M" or "Q" visa holder claims an amount for excess SST or RRTA,

Code & Edit did NOT issue a Letter 513C.

Send Letter 513C.

Delete Social Security tax from Field 05ESS.

Adjust total payments and Balance Due/Refund.

Notate in upper left-hand corner of return "513C and Form 843 detached."

Exceptions & meaning →

Note:¶

Do not assign TPNC

c) The taxpayer claims excess SST or RRTA,

Their Visa is not listed above

they had one employer that withheld more than the maximum amount listed below:

TY 2024 -$10,453.20

TY 2023 - $9,932.40

TY 2022 - $9,114.00

TY 2021 - $8,853.60

TY 2020 - $8,537.40

TY 2019 - $8,239.80

TY 2018 - $7,960.80

TY 2017 - $7,886.40

TY 2015 and 2016 $7,347.00

TY 2014 $7,254.00

Delete entry in Field 05ESS.

Complete Form 3696-A to initiate Letter 404-C.

Assign TPNC 294.

Exceptions & meaning →

Note:¶

Do Not SSPND.

d) The taxpayer claims excess SST or RRTA,

The taxpayer had more than one employer, and the combined amount exceeds the maximum amount listed below:

TY 2024 -$10,453.20

TY 2023 - $9,932.40

TY 2022 - $9,114.00

TY 2021 - $8,853.60

TY 2020 - $8,537.40

TY 2019 - $8,239.80

TY 2018 - $7,960.80

TY 2017 - $7,886.40

TY 2015 and 2016 $7,347.00

TY 2014 $7,254.00

Verify the entry by combining all Form(s) W-2.

Allow the credit and enter the amount in Field 05ESS.

e) Incorrectly figured the amount for excess SST/RRTA,

Enter the correct amount in Field 94ESV.

Assign TPNC 294.

f) Form 843 attached,

Detach Form 843

Route Form 843 to Accounts Management, and Indicate on Routing Slip "Detached from Form 1040-NR"

Notate on Form 1040-NR, upper left corner, "513C and 843 Detached."

Exceptions & meaning →

Correction Procedures - EC 364 - Dual-Status¶

Dual-status taxpayers should not be allowed Recovery Rebate Credit on either of the controlling return. C&E will “X” line 30, Form 1040 if Recovery Rebate Credit is claimed. If the taxpayer claimed Recovery Rebate Credit on a dual-status return, disallow the credit and assign TPNC 483.

In general nonresident aliens are not eligible for the Education credit from Form 8863. However, a non-resident alien taxpayer may be able to claim an education credit if the taxpayer is married to and files a joint return with a U.S. citizen or resident alien or is a dual status alien that year and chooses to be treated as U.S. resident for the entire year. When a taxpayer claims education credit as a dual-status taxpayer disallow and assign TPNC 424.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 364¶

Use the following TPNCs for EC 364.

TPNC

Literal

Any previously sent TPNC

100

111

Your return was converted to a Form 1040.

218

We computed your tax for you.

252

You incorrectly figured your child tax credit.

280

294

You computed your excess SST or RRTA Tax withheld incorrectly.

296

Computed or transferred Form 4136 incorrectly.

297

We found an error in the addition of the payments section on your tax return.

298

We deleted the amount of state tax that was shown as due on your federal taxes.

504

We changed the total other payments and refundable credits you claimed because you either didn’t complete Schedule 3, Additional Credits and Payments, or you didn’t attach it to your tax return.

507

We didn’t allow the amount claimed as other payments on your tax return because no form was submitted to substantiate the amount. (Form 1040)

540

We can't allow your EIC. Information reported shows that you don't qualify for it. (Form 1040/Form 1040-NR)

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence. (Form 1040/Form 1040-NR)

582

No reply. Disallowed the amount you reported as Federal Income Tax withheld. (Form 1040)

590

No reply. We can't allow the excess SST or RRTA Tax Withheld.

592

We didn’t allow the amount claimed as additional child tax credit on your tax return because Schedule 8812, Additional Child Tax Credit, was incomplete or not attached to your tax return. (PY)

594

Not eligible for HCTC.

595

No reply - Form 2439

596

No reply - Form 4136, Credit for Federal Tax Paid on Fuels.

669

Disallowed all or part of HCTC.

733

We changed the refundable credits on your return because you incorrectly calculated the amount.

759

788

We changed the amount you claimed as net premium tax credit on your tax return because there was an error on Form 8962, Premium Tax Credit.

790

791

792

794

We didn’t allow the amount you claimed as net premium tax credit on your tax return because Form 8962, Premium Tax Credit, was incomplete or not attached to your tax return.

807

We did not allow the credit(s) you claimed on your tax return. The amount you entered is not an allowable credit. We have adjusted your tax return accordingly.

TPNC

Literal

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

341

We changed the amount claimed as credit as on Form 8689, because it can't be more than the total tax due on your Form 1040.

355

We changed the amount reported as Additional Medicare Tax, Form 8959 on page 2 of your tax return. There was an error computing Part V, line 24 Form 8959, Additional Medicare Tax. (Form 1040-NR/PR/SS)

364

You made an error transferring the amount of payments made to the U.S. Virgin Islands. We have adjusted your return accordingly.

443

You are not entitled to a refund of tax withheld on U.S. social security benefits as shown on your Form 1040-NR. As a nonresident alien, 85 percent of your social security benefits are taxed at 30 percent. We have adjusted your return accordingly. (Form 1040-NR)

483

We cannot allow the amount you claimed for Recovery Rebate Credit. Dual-status taxpayers are not eligible for this credit. We have adjusted your return accordingly.

Exceptions & meaning →

Note:¶

Exceptions & meaning →

Error Code 366/666 - Total Payments¶

EC 366 generates when Total Payments is not equal to Total Payments Computer and math error is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 366, for invalid conditions, and refer to both IRM 3.12.3 and IRM 3.22.3 for correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 366¶

The following fields are displayed for EC 366.

1040-NR

1040-SS (sp)/1040-SS

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01CCC

Computer Condition Code

01RPC

Return Processing Code

01SPC

Special Processing Code

03WH

Withholding from Form(s) W-2 or Form (s) 1099

0325E

Withholding from Form(s) 8805

0325F

Withholding from Form(s) 8288-A

0325G

Withholding from Form(s) 1042-S

03ESP

Estimated Tax Payments

03ACT

Additional Child Tax Credit

Additional Child Tax Credit Computer

03RAC

Refundable Adoption Credit

03RAC>

Refundable Adoption Credit

05PTC

Taxpayer Reconciled Premium Tax Credit Amount

05PTC>

Computed Reconciled Premium Tax Credit

05EXT

Form 4868 Credit

05ESS

Excess Social Security

05FUE

Fuel Tax Credit, Form 4136

Fuel Tax Credit Computer

05RIC

Form 2439 Regulated Investment Company Credit

05DHS

Deferred Taxes Schedule H-Schedule SE

05OTH

Other Payment or Credit Amount (ERS only)

05TYP

Payment or Credit Type Code (ERS only, type of credit from current year or prior year expired credit)

05OPR

Total Other Payments and Refundable Credits

0329

Form 1040C Credit

03RCR

Refundable Credits

Refundable Credits Computer

03PAY

Total Payments

Total Payments Computer

03CEL

Estimated Tax Credit Elect

03BDR

Balance Due/Refund

Balance Due/Refund Computer

03BDR>

Balance Due/Refund Taxpayer Computer

Exceptions & meaning →

Note:¶

The fields displayed for EC 666 will include a Clear Code field and Field 02NC> and all other fields will be the same as EC 366.

Exceptions & meaning →

Correction Procedures - EC 366¶

Correct coding and transcription errors and misplaced entries in displayed Fields.

Refer to all instructions for the Error Code.

Exceptions & meaning →

Caution:¶

Exceptions & meaning →

Correction Procedures - EC 366- Form 1040¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 366 for additional correction procedures

Exceptions & meaning →

Total Payments - EC 366 - Form 1040¶

Total Payments is found on Form 1040 - line 33 (TY19, line 19) and transcribed in Field 03PAY.

Refer to EC 364 at IRM 3.22.3.263.2.1 for instructions on Excess Social Security and Railroad Retirement Tax.

Refer to EC 364 at IRM 3.22.3.263.2.2 for instructions on Form 8689, Allocation of Individual Income Tax to the USVI.

If there is an entry for Total Payments and the preceding fields in Section 03 and 05 are blank, follow the instructions in IRM 3.12.3, Error Resolution, Individual Income Tax Returns, Total Payments (EC 364), with these exceptions:

Use ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ as the tolerance amount instead of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

If research shows that withholding claimed is supported by Form W-2, Form 1099, Form 8805, Form 1042-S, or Form 8288-A follow the additional instructions in IRM 3.22.3.264.3 for the applicable forms.

Disregard the expiration date if indicated on the green card. Per Pub 519 green cards are valid after the expiration date.

Allow the refund of withholding tax.

Form 1040 - Enter the amount in Field 03WH.

Form(s) SSA 1042-S and/or RRB 1042-S is attached,

The green card for the appropriate taxpayer is not attached and/or signed declaration or statement is not attached,

SSPND 215 and select Paragraph N of Form 13900

Exceptions & meaning →

Form 1042-S - Tax Withheld at Source on Form 1040 (Form 1042-S)¶

All Form 1042-S withholding claims must be supported by Form 1042-S. If the research indicates the withholding claimed is from Form 1042-S and the form is not attached, SSPND 215 and select paragraph L of Form 13900.

Tax withheld on Form 1042-S is entered by the taxpayer on line 25g TY19, line 17) and moved by Code & Edit to the on the dotted portion of line 33 (TY19, line 19) of Form 1040. (Refer to instructions at IRM 3.22.3.264.3.3 for income or withholding from Form SSA/RRB 1042-S).

Exceptions & meaning →

Note:¶

If the only income reported is from Form(s) 1042-S, Code & Edit is instructed to correspond for the filer's U.S. status.

If Form 1042-S is attached

And

Then

a) The only source of income is from Form 1042-S and Code & Edit did NOT correspond for the filer's U.S. status,

The return or attachments includes a statement that identifies the taxpayer as a U.S. citizen or resident alien filing Form 1040,

Follow the instructions in (c) or (d) below for U.S. citizens and resident aliens.

b) The only source of income is from Form 1042-S, and Code & Edit did NOT correspond for the filer's U.S. status,

The return doesn’t include a statement that identifies the taxpayer as a U.S. citizen or resident alien,

SSPND 215 selecting paragraph X of Form 13900.

c) If the taxpayer is reporting worldwide income as a U.S. citizen or resident alien,

The Form 1042-S withholding amount is on the dotted portion of line 33 (TY19, line 19),

Enter the amount in Field 05OTH.

For FLC 20, enter "S" in Field 05TYP.

d) If the taxpayer is reporting worldwide income as a U.S. citizen or resident alien,

The Form 1042-S withholding amount is NOT on the dotted portion of line 33 (TY19, line 19),

Adjust Field 03WH to exclude the tax withheld on Form 1042-S.

Enter the tax withheld amount claimed from Form 1042-S in Field 05OTH.

For FLC 20, enter "S" in Field 05TYP.

Exceptions & meaning →

Form 8288-A - Statement of Withholding on Certain Dispositions by Foreign Persons on…¶

This amount is entered on the dotted portion of Form 1040, line 33 (TY19, line 19).

Then

a) Form 8288-A or substantial evidence which shows the amount of the tax withheld is not attached,

Exceptions & meaning →

Example:¶

Signed or initialed closing documents or settlement statement, or Form 8288-A Copy B (stamped or not stamped by the IRS)

SSPND 215 for Form 8288-A selecting paragraph L on Form 13900.

b) Form 8288-A credit is claimed and has not been verified on the FIRPTA (Foreign Investment in Real Property Tax Act) database,

SSPND 360 and attach Form 4227 and notate FIRPTA verification required.

Exceptions & meaning →

Note:¶

FIRPTA tax withheld is verified following the procedures in IRM 3.21.25.17, International Returns and Document Analysis - Miscellaneous Tax Returns, Credit Verifying Form 8288-A (FIRPTA) Credits.

c) Credit is verified and it is the same amount the taxpayer reported,

Leave Form 13698 attached to the return.

Enter the amount in Field 05OTH and enter "Z" in Field 05TYP.

d) Credit is verified and it is a different amount than what the taxpayer reported,

Exceptions & meaning →

Caution:¶

Enter only the amount that was verified not to exceed the amount the taxpayer is claiming.

Leave Form 13698 attached to the return.

Enter verified amount in Field 05OTH and enter "Z" in Field 05TYP.

e) The credit is verified, but less than the amount that the taxpayer claimed, and is greater than zero,

Assign TPNC 436.

f) The credit is verified to zero,

Assign TPNC 434.

Exceptions & meaning →

Form 8805 - Foreign Partner's Information Statement of Section 1446 Withholding Tax on…¶

This amount should be entered on the dotted portion of Form 1040, line 33 (TY19, line 19).

And

Then

Form 8805 is attached,

Enter the amount in Field 05OTH and enter "Z" in Field 05TYP.

Form 8805 is attached,

The Form 8805 withholding amount is NOT on the dotted portion of line 33 (TY19, line 19),

Adjust Field 03WH to exclude the tax withheld on Form 8805.

Enter the tax withheld amount on Form 8805 in Field 05OTH and enter "Z" in Field 05TYP.

Form 8805 is not attached,

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Allow the credit.

Form 8805 is not attached,

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

SSPND 215 for Form 8805 selecting paragraph L of Form 13900.

Refund of Section 1446 Tax (Form 8805) - Code & Edit is instructed to "X" withholding ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ if the taxpayer identification number (TIN) on Form 8805 is different from the TIN in the Entity Section on Form 1040.

Compare the taxpayer’s TIN on the Form 1040 and the TIN on Form 8805 and follow the instructions in the chart below:

Then

TINs are the same,

Allow withholding.

Enter the amount in Field 05OTH and enter "Z" in Field 05TYP.

TINs are different OR there is no TIN on the Form 8805,

Delete the withholding amount.

Assign TPNC 441.

Exceptions & meaning →

Exception:¶

If a valid TIN has been newly assigned or was assigned after the tax year of the return, but is not on Form 8805, verify that the name on Form 8805 is the same as the taxpayer on the return and allow the withholding. (A temporary TIN (IRSN) assigned by the IRS isn’t a valid TIN.)

Exceptions & meaning →

EC 366 - Correction Procedures-Form 1040-NR¶

Use the following procedures for Form 1040-NR.

Exceptions & meaning →

Total Payments- EC 366 - Form 1040-NR¶

Total Payments is found on Form 1040-NR - line 33 (TY19, line 71) and transcribed in Field 03PAY:

Refer to EC 364 at IRM 3.22.3.263.3.1 for instructions on Excess Social Security and Railroad Retirement Tax.

If there is an entry for Total Payments and the preceding fields in Section 03 and 05 are blank, follow the instructions in the chart below:

Then

No support for withholding or other payments or credits is attached to the return,

Use CC IRPTR to search for amounts or combination of amounts that match the entry for Total Payments.

IRPTR shows withholding documents that support the amount for Total Payments,

Use the instructions in IRM 3.22.3.264.4 as applicable for each type of withholding to verify the amount claimed on the return.

IRPTR data isn’t available or IRPTR doesn’t support the amount claimed,

SSPND 215 and correspond using paragraph L on Form 13900.

Exceptions & meaning →

Withholding - Form 1040-NR¶

Fields 03WH, 0325E, 0325F, 0325G (Form 1040-NR) are transcribed from:

Form 1040-NR, line 25d (TY19, line 62a) - Withholding from Form W-2 or Form 1099

Form 1040-NR, line 25e (TY19, line 62b) - Withholding from Form 8805

Form 1040-NR, line 25f (TY19, line 62c) - Withholding from Form 8288-A

Form 1040-NR, line 25g (TY19, line 62d) - Withholding from Form 1042-S

Use the instructions in IRM 3.22.3.264.4 that correspond to the withholding line on the return and the supporting forms attached to the return. If withholding is entered by the taxpayer or transcribed on the incorrect line (for instance, Form 8805 withholding is entered on line 25g), move the allowable amount to the correct line before closing the return.

Exceptions & meaning →

Note:¶

Credits posted on lines 25e - g (TY19, lines 62b - d) are assigned unique reference numbers on Master File that identify the type of credit. Posting the credit on the wrong line will incorrectly identify the source of the withholding on Master File.

Exceptions & meaning →

Field 03WH - U.S. Tax Withheld on Form W-2, Form 1099 and Other Forms¶

If withholding from any of the Form W-2 type forms listed below or any other foreign withholding is claimed, delete the withholding and assign TPNC 438.

Form W-2AS

Form W-2CM

Form W-2GU

Form W-2PR/499R-2

Form W-2VI.

If an amount is reported on line 25d (TY19, line 62a) of Form 1040-NR follow these instructions:

And

Then

The amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡,

The amount claimed is not supported by Form W-2 or Form 1099 or similar statement of U.S. withholding,

SSPND 215 and correspond using paragraph L of Form 13900 if unable to verify the withholding using CC IRPTR.

Exceptions & meaning →

Note:¶

If IRPTR shows the withholding is from Form SSA/RRB 1042-S. Form 8805, Form 1042-S, or Form 8288-A follow the instructions for these forms in IRM 3.22.3.264.4.

The amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡,

The amount is supported or not supported,

Allow the withholding and enter in Field 03WH (Form 1040-NR ).

Withholding is greater than 30% of income from a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡,

SSPND 335 to FRP.

Exceptions & meaning →

Field 0325E - U.S. Tax Withheld at Source by Partnerships Under Section 1446 (Form…¶

This field is transcribed from line 25e (TY19, line 62b), Form 1040-NR.

And

Then

Form 8805 or an official statement of withholding from the withholding agent or employer is not attached,

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡

Allow the credit.

Form 8805 or an official statement of withholding from the withholding agent or employer, is not attached,

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡

SSPND 215 for Form 8805. selecting paragraph L on Form 13900

Compare the taxpayer’s TIN on the Form 1040-NR and the TIN on Form 8805 and follow the instructions in the chart below:

Then

TINs are the same,

Exceptions & meaning →

Caution:¶

If there is no TIN or a partially masked TIN on Form 8805 verify the names are the same as on the Form 1040-NR and allow the withholding if the names match.

Allow withholding.

Enter the amount in Field 0325E.

TINs are different, OR The name does not match Form 8805,

Delete the withholding amount in Field 0325E.

Assign TPNC 441.

Exceptions & meaning →

Exception:¶

Exceptions & meaning →

Field 0325F - U.S. Tax Withheld on Certain Dispositions by Foreign Persons(Form 8288-A)…¶

This field is transcribed from line 25f (TY19, line 62c), Form 1040-NR.

Then

a)Form 8288-A or substantial evidence which shows the amount of the tax withheld is not attached,

Exceptions & meaning →

Example:¶

Signed or initialed closing documents or settlement statement, or Form 8288-A Copy B (stamped or not stamped by the IRS)

SSPND 215 for Form 8288-A selecting paragraph L on Form 13900,

Exceptions & meaning →

Note:¶

Follow the instructions in paragraphs (c) and (d) below before corresponding.

b) Form 8288-A or substantial evidence is attached, but no Form 13698, International Credit(s) Verification Slip, is attached to show the amount of credit verified in the FIRPTA database,

SSPND 360 and attach Form 4227 and notate “FIRPTA verification required”.

Exceptions & meaning →

Note:¶

FIRPTA tax withheld is verified following the procedures in IRM 3.21.25.16, International Returns and Document Analysis - Miscellaneous Tax Returns, Credit Verifying Form 8288-A (FIRPTA) Credits The credit is denied if the taxpayer doesn’t have a valid TIN (SSN or ITIN) on the tax return.

c) Credit is verified on the FIRPTA database and Form 13698 is present,

Verify that Form 8288-A, box 3 amount(s) (or the sales price from the settlement statement) is reported on one of the following:

Schedule D column (d)

Form 4797 column (d)

Schedule E Part ll

Form 4684 Section B

d) Form 8288-A box 3 amount(s) (or the sales price from the settlement agreement) is not reported, and Code & Edit did not dummy Schedule D,

SSPND 215 and correspond selecting paragraph 4 on Form 13900 for Letter 4087C.

e) Credit is verified and it is the same amount the taxpayer reported,

Leave Form 13698 attached to the return.

Enter the amount in Field 0325F

Exceptions & meaning →

Note:¶

If the amount was transcribed in another field move the amount to Field 0325F.

f) Credit is verified and it is a different amount than what the taxpayer reported,

Exceptions & meaning →

Caution:¶

Enter only the amount that was verified not to exceed the amount the taxpayer is claiming.

Leave Form 13698 attached to the return.

Enter verified amount in Field 0325F.

Exceptions & meaning →

Note:¶

If the amount was transcribed in another field move the amount to Field 0325F.

g) The credit is verified but less than the amount that the taxpayer claimed and is greater than zero,

Assign TPNC 436.

h) The credit is verified to zero,

Assign TPNC 434.

Exceptions & meaning →

Field 0325G - Form 1042-S Withholding Form 1040-NR¶

This field is transcribed from Form 1040-NR - line 25g (TY19, line 62d)

Then

Form 1042-S from the withholding agent or employer is not attached,

SSPND 215 for Form 1042-S selecting paragraph L on Form 13900.

Exceptions & meaning →

Exception:¶

Don’t correspond for Form 1042-S if a letter signed by the "United States Competent Authority" is attached to the return.

Exceptions & meaning →

Note:¶

Withholding from gambling winnings may be reported on a Form 1042-S recipient copy that is formatted as a receipt-type commercial statement. If a taxpayer provides a Form 1042–S in receipt format as support for withholding on line 25g (TY19, line 62d) of Form 1040-NR, accept the receipt if it is issued by a business and includes the date, recipient information, the amount of the gambling winnings, and the amount of tax withheld.

If line 25g (TY19, line 62d) withholding was deleted at EC 215 on a MeF Form 1040-NR because a Form 1042-S is missing both the TIN and recipient name, then assign TPNC 441.

Follow these instructions when Code & Edit has "X'd" line 25g (TY19, line 62d), or when Form 1042-S is received with a reply to correspondence.

Exceptions & meaning →

Note:¶

Code & Edit may "X" line 25g (TY19, line 62d) for missing information on Form 1042-S.

And

Then

a) Recipient TIN is missing in box 13e of Form 1042-S,

Recipient Name in box 13a is the same as the taxpayer on the return,

Allow the withholding.

Enter in Field 0325G (Form 1040-NR).

b) Recipient TIN is missing in box 13e of Form 1042-S,

No recipient name is present in box 13a,

Delete this withholding from Field 0325G (Form 1040-NR).

Assign TPNC 441.

c) Recipient TIN in box 13e of Form 1042-S is an ITIN,

Taxpayer’s TIN on the tax return is a SSN, and the recipient name in box 13a is the same as the taxpayer name on the return,

Allow the withholding.

Enter in Field 0325G (Form 1040-NR).

d) Recipient TIN is missing in box 13e of Form 1042-S,

Recipient Name in box 13a is present but not the same as the taxpayer on the return,

Delete the Form 1042-S income and withholding from the return.

Assign TPNC 334.

If a letter signed by the "United States Competent Authority" is attached to the return, then allow the taxpayer’s amount of withholding claimed on line 25g (TY19, line 62d) of Form 1040-NR.

The 30 percent (or 15 percent) tax must be computed on 85 percent of the social security benefits. (e.g., If the taxpayer has $3000 of SSA/RRB income, they must pay tax on it. Multiply $3,000 X 85 percent = $2550. The tax on $2550 X 30 percent = $765.).

Exceptions & meaning →

Correction Procedures - EC 366 - Form 1040-SS (sp)/Form 1040-SS¶

Use the following procedures for Form 1040-SS (sp)/Form 1040-SS.

Exceptions & meaning →

Form 1040-SS (sp) and Form 1040-SS - EC 366 - Total Payments¶

This field is transcribed from Form 1040-SS (sp) and Form 1040-SS, line 12 (TY19, line 11).

To arrive at Total Payments Computer, the computer adds Field 03ESP, Field 05ESS, Field 03ACT, Field 05EXT, Field 05DHS, and Field 05OTH for Form 1040-SS (sp) and Form 1040-SS.

If the taxpayer has noted write-in "SLFLC" on line 12, and taxpayer is using the amount in the computation of total payments, Schedule H must be attached. If the write-in “SLFLC” is not supported by Schedule H, SSPND 215, and use Letter 2894C/SP. Select paragraph L and T.

If the taxpayer has noted write-in "SLFLC" on line 12, and taxpayer is using the amount in the computation of total payments, and Schedule H is attached, enter the amount in Field 05OTH.

If a taxpayer from Puerto Rico is claiming the refundable American Opportunity Credit as a "write-in" in the Total payments and credits section of Form 1040-SS (sp) or Form 1040-SS, or indicates the credit is claimed by attaching Form 8863, then delete the credit amount if included in lines 7 through 10 and take the following actions:

If EC 366 displays assign a TPNC 478.

Return any documentation for education expenses attached to the return (e.g., Form 1098-T, tuition statements) to the taxpayer by preparing a Form 5260, Quick Note, using the following literal and mail to the taxpayer using the address on the return: (Form 1040-SS) - Bona fide residents of Puerto Rico receive the refundable part of the American Opportunity Credit from the Puerto Rico Treasury Department by filing a return with the Departamento de Hacienda, PO Box 9022501, San Juan, PR 00902-2501. We removed the credit from your Form 1040-SS, U.S. Self-Employment Tax Return. We’re returning the supporting documentation you submitted. (Form 1040-SS (sp)) - Los residentes bona fide de Puerto Rico reciben la parte reintegrable del Crédito Contributivo de Oportunidad para los Estadounidenses, del Departamento del Tesoro de Puerto Rico, al radicar la planilla con el Departamento de Hacienda, PO Box 9022501, San Juan, PR 00902-2501. Hemos eliminado el crédito de su Formulario 1040-SS (sp), Planilla para la Declaración de la Contribución Federal sobre el Trabajo por Cuenta Propia. Estamos devolviendo la documentación de apoyo que envió

If the taxpayer has an entry in the dotted portion of line 11 indicating a payment was made with an extension to file request such as Form 4868, GTSEC 05 and enter that amount into Field 05EXT.

If there is an entry in Field 03PAY (Total Payments) and Field 03ESP, Field 05ESS, Field 03ACT, Field 05EXT, and Field 05DHS are blank follow the instructions below:

And

Then

There is no supporting documentation,

The amount claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Enter the amount in Field 03ESP.

There is no supporting documentation,

The amount claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

SSPND 215 and correspond.

If the taxpayer figured total payments incorrectly, issue TPNC 376 (Form 1040-SS (sp)) or TPNC 346 (Form 1040-SS).

Exceptions & meaning →

Caution:¶

If married filing jointly, each individual taxpayer must meet all criteria. When computing excess SST withheld, add supporting documentation (Form W-2, Form W-2AS, Form W-2CM, Form W-2GU, Form W-2VI or Form 499R-2/W-2PRs) for primary and secondary taxpayerseparately.

c) Claims excess SST or RRTA,

No supporting documentation attached (Form W-2, Form W-2AS, Form W-2CM, Form W-2GU, Form W-2VI or Form 499R-2/W-2PRs)

SSPND 215 to correspond and use paragraph H Form 13975 for Letter 2894C/SP.

d) Incorrectly figured the amount of excess SST/RRTA,

Enter the correct amount in Field 94ESV.

Assign TPNC 331 for Form 1040-SS, TPNC 361 for Form 1040-SS (sp).

e) Correctly figured the amount of excess SST/RRTA

Enter the amount in to Field 94ESV.

Exceptions & meaning →

Line 10, Form 1040(PR)/Form 1040-SS, Form 8885, Health Coverage Tax Credit (HCTC)¶

Taxpayers claim the Health Coverage Tax Credit (HCTC) on line 10 of Form 1040-SS and Form 1040(PR). For TY 2022 Form 8885 is made historical and line 13c, Schedule 3 is reserved.

For TY 2015 -TY 2021, follow the procedures for Form 1040 Schedule 3, Line 12c (TY19, Line 13, box c) for Form 8885 in IRM 3.12.3, EC 348. To request missing items SSPND 215 and use Letter 2894C/SP. Select these paragraphs on Form 13975:

Form 8885 is missing - paragraph O

Invoices or proof of payments are missing - paragraph Q

Proof of eligibility is missing- paragraph R

Exceptions & meaning →

Reminder:¶

Don’t use AC 213 on international returns.

Tax Year 2014 Amended Returns - Taxpayers are instructed to file Form 1040(PR) or Form 1040-SS without attaching Form 8885 for TY 2014. If they are eligible for HCTC, they are instructed to file Form 8885 using an amended Form 1040(PR)/SS. Taxpayers amend Form 1040(PR)/SS by writing "CORRECTED" at the top of page 1 of the corrected return. If the taxpayer has written "CORRECTED" at the top of page 1 refer to the Rejects work leader to RJECT the amended return and route to ICT for processing.

Tax Year 2014 Original Filing - If the taxpayer didn’t write "CORRECTED" on the return, take the following actions for TY 2014 paper returns suspended AC 491 when Form 8885 is attached and an amount is included in total payments for HCTC:

Detach Form 8885 and any supporting documentation.

Assign TPNC 378. (Form 1040(PR)) - 378.

Prepare Form 5260, Quick Note, using the following verbiage: (Form 1040-SS) - For tax year 2014, Form 8885, Health Coverage Tax Credit, must be submitted by amending your Form 1040-SS. We are removing Form 8885 and the amount from your return. We are returning the form to you and any supporting documentation you submitted. You will need this information to submit an amended Form 1040-SS. Form 1040-SS and instructions can be obtained by visiting www.irs.gov or call 800-TAX-FORM (800-829-3676). (Form 1040(PR)) - Para el año contributivo 2014, el Formulario 8885, Health Coverage Tax Credit (Crédito contributivo por la cobertura de salud), debe presentarlo enmendando su Formulario 1040-PR. Estamos eliminando el Formulario 8885 y la cantidad de su planilla. Le estamos devolviendo el formulario y toda la documentación de apoyo que envió. Usted necesitará esta información para presentar un Formulario 1040-PR enmendado. El Formulario 1040-PR y sus instrucciones pueden obtenerse visitando www.irs/gov/espanol o llame al 800-TAX-FORM (800-829-3676).

Attach Form 8885 and any documentation to Form 5260 and mail to the taxpayer using the address on the return.

Exceptions & meaning →

Form 8959 - Additional Medicare Tax- Form 1040-SS (sp)/Form 1040-SS¶

A taxpayer reports the amount from line 24 of Form 8959 on line 11a (TY23 -20, line 12: TY19, line 11) of Form 1040-SS (sp)/Form 1040-SS. If the taxpayer indicates that the entry on line 12 (TY19, line 11) includes an amount from Form 8959 and the form isn’t attached to the return, SSPND 215 and correspond for the form using Form 13975. Include with the correspondence fill-in paragraph PD for Form 1040-SS (sp) or PJ for Form 1040-SS from Exhibit 3.22.3-13.

If Form 8959 is attached to the return with an amount on line 24 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and the amount is included in total payments on line 12 (TY19, line 11) of Form 1040-SS (sp)/SS, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

If Form 8959 is attached with an amount on line 24 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and the amount is included in total payments on line 12 (TY19, line 11) of Form 1040-SS (sp)/SS, verify the line 24 amount using the following instructions. SSPND 215 and correspond for missing support using Form 13975 and selecting fill-in paragraph PD for Form 1040-SS (sp) or PJ for Form 1040-SS in Exhibit 3.22.3-13.

Line 19 - Add Medicare tax withheld amounts from the Forms W-2AS, W-2CM, W-2GU, W-2VI, and 499R-2/W-2PR attached to the return. For Form 499R-2/W-2PR, Medicare tax withheld is reported in Box 20.

Line 20 - Add Medicare wage amounts from Forms W-2AS, W-2CM, W-2GU, W-2VI, and 499R-2/W-2PR. For Form 499R-2/W-2PR, Medicare wages and tips are reported in Box 19.

Line 21 - Multiply the line 20 calculated amount by 1.45%.

Line 24 - Figure the difference between the calculated amounts for line 19 and line 21.

Enter the line 24 amount in Field 05OTH, and enter “Z” in Field 05TYP. If EC 366 regenerates assign TPNC 355.

Exceptions & meaning →

Note:¶

TPNC 355 generates a notice in English or Spanish as appropriate to the tax return.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 366¶

Use the following TPNCs for EC 366.

TPNC

Literal

Any previously sent TPNC

100

111

Your return was converted to a Form 1040.

218

We computed your tax for you.

252

You incorrectly figured your child tax credit.

280

283

We adjusted your federal income tax withheld to reflect the amounts shown on Form(s) W-2 or other supporting documents. (Form 1040/Form 1040-NR)

284

We computed your EIC. (Form 1040)

285

Figured or entered EIC incorrectly. (Form 1040)

286

We can't allow your EIC because of your filing status. (Form 1040)

287

We can't allow your EIC. AGI is more than the maximum amount. (Form 1040)

288

We can't allow your EIC. No earned income (Form 1040)

290

We can't allow your EIC. DSI box checked. (Form 1040)

292

We figured your EIC. However, you may be eligible for more. (Form 1040)

294

You computed your excess SST or RRTA Tax withheld incorrectly.

296

Computed or transferred Form 4136 incorrectly.

297

We found an error in the addition of the payments section on your tax return. (Form 1040/Form 1040-NR)

298

We deleted the amount of state tax that was shown as due on your federal taxes. (Form 1040/Form 1040-NR)

507

We didn’t allow the amount claimed as other payments on your tax return because no form was submitted to substantiate the amount. (Form 1040)

504

We changed the total other payments and refundable credits you claimed because you either didn’t complete Schedule 3, Additional Credits and Payments, or you didn’t attach it to your tax return.

527

540

We can't allow your EIC. Information reported shows that you don't qualify for it. (Form 1040/Form 1040-NR)

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence. (Form 1040/Form 1040-NR)

582

No reply. Disallowed the amount you reported as Federal Income Tax withheld. (Form 1040)

585

No reply - Schedule EIC (Form 1040)

590

No reply. We can't allow the excess SST or RRTA Tax Withheld.

592

We didn’t allow the amount claimed as additional child tax credit on your tax return because Schedule 8812, Additional Child Tax Credit, was incomplete or not attached to your tax return. (PY)

594

Not eligible for HCTC.

595

No reply - Form 2439

596

No reply - Form 4136, Credit for Federal Tax Paid on Fuels.

601

We changed the amount claimed on Schedule 3 as Deferral of tax payments from Schedule H or Schedule SE because the amount cannot exceed maximum amounts of deferred tax payments reported on Schedule H and/or Schedule SE or Schedule H and/or Schedule SE not attached.

649

We changed or reduced the amount claimed as the repayment of the First-Time Homebuyer Credit on your return. (Form 1040)

669

Disallowed all or part of HCTC.

750

We didn’t allow part or all of your Earned Income Credit on your tax return. The information provided shows one or more of the qualifying children on Schedule EIC, Earned Income Credit, did not meet the age requirement for the credit. (Form 1040)

751

752

We didn’t allow part or all of your Earned Income Credit on your tax return. The information provided shows one or more of the qualifying children on Schedule EIC, Earned Income Credit, did not live with you for more than half the year. (Form 1040)

759

760

We didn’t allow part or all the amount claimed for Earned Income Credit. You didn’t provide support for the statutory wages you reported, and we didn’t consider those wages in figuring the credit.

767

We changed the amount reported as Additional Medicare Tax Withholding. There was an error computing line 24 of Form 8959, Additional Medicare Tax Withholding or transferring the amount to your tax return.

788

We changed the amount you claimed as net premium tax credit on your tax return because there was an error on Form 8962, Premium Tax Credit.

790

791

792

794

We didn’t allow the amount you claimed as net premium tax credit on your tax return because Form 8962, Premium Tax Credit, was incomplete or not attached to your tax return.

807

We did not allow the credit(s) you claimed on your tax return. The amount you entered is not an allowable credit. We have adjusted your tax return accordingly.

810

You, your spouse, or one or more of your dependents claimed on your return didn’t have an assigned taxpayer identification number by the due date of the tax return. As a result, we disallowed certain credits claimed on your return.

814

We disallowed the amount claimed as earned income credit on your tax return. Our records indicate that we’ve banned you from claiming earned income credit for two tax years.

815

We disallowed the amount claimed as earned income credit on your tax return. Our records indicate that we’ve banned you from claiming earned We disallowed the amount claimed as earned income credit on your tax return. Our records indicate that we’ve banned you from claiming earned income credit for this tax year.

816

We disallowed the amount claimed as earned income credit on your tax return. Our records indicate that we’ve banned you from claiming earned income credit for ten tax years.

TPNC

Literal

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

331

We changed the amount claimed as excess social security tax withheld or tier 1 RRTA withheld on your tax Form. (Form 1040-SS)

332

We didn't allow the amount claimed as additional child tax credit because supporting documents were not attached to your tax return. (Form 1040-SS)

341

We changed the amount claimed as credit as on Form 8689, because it can't be more than the total tax due on your Form 1040.

345

We didn't allow the amount claimed as excess Social Security tax or tier 1 RRTA withheld on line 8 of your Form 1040-SS because Form(s) W-2PR, 499-R was not attached to your tax return. (Form 1040-SS)

346

We changed the amount claimed as total payments on your Form 1040-SS because there was an error in the addition of the payments section on your tax return. (Form 1040-SS)

355

356

We changed the amount reported as Additional Medicare Tax, Form 8959 on page 2 of your tax return. There was an error transferring the amount from line 18 of your Form 8959 to your tax return. (Form 1040-NR/PR/SS)

357

An error was made transferring from line 24, Form 8959, to your tax return.(Form 1040-NR/PR/SS)

359

We changed the amount of total tax on line 6 of your Form 1040-SS (sp).

Corregimos la cantidad total de la contribución en la Línea 6 de su Forma 1040-SS (sp), porque sumando la Línea 3 hasta la 5 hubo un error. (1040-SS (sp))

361

We changed the amount claimed as excess social security tax withheld or tier 1 RRTA withheld.

362

We didn’t allow the additional child tax credit because Form(s) 499R-2, W-2PR or other supporting documents were not attached.

No le concedimos la cantidad reclamada como crédito contributivo adicional por hijo porque la/las Forma(s) 499R-2, W-2PR u otros comprobantes no fueron incluídos en su planilla de contribución.

369

We didn’t allow part or all of your additional child tax credit. One or more of your children exceeds the age limitation.

No le concedimos parte o todos sus créditos contributivos adicionales por hijo en la página 1 de su planilla de contribución. Uno o más de sus hijos excede la limitación de edad.

374

We changed the refund or amount you owe based on the information you provided to our previous correspondence.

Corregimos su contribución basado en la información que usted proveyó en la contestación a nuestra correspondencia anterior.

375

We didn't allow the amount claimed as excess Social Security tax or tier 1 RRTA on your tax return because Form(s) W-2 was not attached to your tax return.

No le concedimos la cantidad reclamada de la retención del exceso de la contribución del seguro social ó lo dispuesto en la retención del RRTA 1 en la Línea 8 de su Forma 1040-SS (sp), porque la/las Formas 499R-2/W-2PR no fueron incluídas a su planilla contributiva. (Form 1040-SS (sp))

376

We changed the amount claimed as total payments on your tax return there was an error in the addition of the payments section on your tax return.

Corregimos la cantidad reclamada como pagos totales en su planilla contributiva porque hubo un error en la sección de la suma de los pagos. (Form 1040-SS (sp))

377

Information provided to the IRS indicates that you are not eligible to claim the Health Coverage Tax Credit.

La información proveída al IRS indica que usted no es elegible para reclamar el Crédito Contributivo de Cobertura de Salud. La elegibilidad se determina a través de su agencia estatal laboral, el Departamento del Trabajo (DOL), ó la Corporación de Garantía de Beneficios Jubilatorios (PBGC). Sólo estas organizaciones pueden determinar su potencial de elegibilidad.

Para determinar la elegibilidad, la ayuda para los Ajustes Comerciales (TAA) y la Alternativa de Ayuda para los Ajustes Comerciales (ATAA), los recipientes pueden llamar al DOL al 1-877-US2JOBS (TTY 1-877-889-5627). Los recipientes de PBGC deben llamar al 1-800-400-7242. (Form 1040-SS (sp))

378

For tax year 2014, Form 8885, Health Coverage Tax Credit, must be submitted by amending your Form 1040-SS. We are removing Form 8885 and the amount from your return. We are returning the form to you and any supporting documentation you submitted. To claim the credit, submit an amended Form 1040-SS according to the form instructions. Include Form 8885 and the supporting documentation you submitted. Form 1040-SS and instructions can be obtained by visiting www.irs.gov or call 800-TAX-FORM (800-829-3676). Para el año contributivo 2014, el Formulario 8885, Health Coverage Tax Credit (Crédito contributivo por la cobertura de salud)", debe presentarlo enmendando su Formulario 1040-PR. Estamos eliminando el Formulario 8885 y la cantidad de su planilla. Le estamos devolviendo el formulario y toda la documentación de apoyo que envió. Para reclamar el crédito, presente un Formulario 1040-PR enmendado, de acuerdo a las instrucciones del formulario. Incluya el Formulario 8885 y la documentación de apoyo que envió. Las instrucciones del Formulario 1040-PR pueden obtenerse visitando www.irs/gov/espanol o llame al 800-TAX-FORM (800-829-3676).

399

We changed the amount claimed on line 11, Part I as Deferral of tax payments because the amount cannot exceed the maximum amount of deferred tax payments reported on line 8d, Schedule H and/or line 9, Part VII of Form 1040-SS. (Form 1040-SS)

Cambiamos la cantidad reclamada en la línea 11, Parte I, como aplazamiento de los pagos de contribuciones porque la cantidad no puede exceder la cantidad máxima de los pagos de contribuciones diferidas declaradas en la línea 8d, Anexo H y/o la línea 9, Parte VII del Formulario 1040-PR. (Form 1040-SS (sp))

404

Based on the information you reported, it appears that you didn’t include capital gains from Form 8288-A. We have adjusted your return accordingly.

430

We didn't allow the amount you reported as tax withheld because Form(s) W-2, 1042-S, 1099 or other supporting document were not attached to your tax return as required. (Form 1040-NR )

432

We didn't allow the amount you reported for Income Tax Withheld At Source because Form 1042-S which is used to verify the amount was not attached to your tax return as required. (Form 1040-NR )

433

We didn't allow the amount withheld by a "Partnership Under Section 1446." You didn't attach Form 8805 and or 1042-S. (Form 1040-NR)

434

We have no record of the payment shown on Form 8288-A. We have adjusted your return accordingly. (Form 1040 and Form 1040-NR)

435

We didn't allow the amount you reported as "U.S. Tax Withheld on Disposition of U.S. Real Property Interest" Form(s) 8288-A and/or 1042-S was not attached to your tax return as required. (Form 1040-NR)

436

We changed the amount claimed as credit on your Form 8288-A. Our records indicate that the amount of your Form 8288-A credit is less than you claimed. (Form 1040-NR)

438

We didn't allow the foreign Withholding claimed on your return. (Form 1040/Form NR)

441

We didn't allow your Form 8805 or Form 1042-S credit because the Social Security number shown on your Form 1040-NR and the credit document do not match. (Form 1040-NR)

442

You did not reply to our request for a copy of your green card and signed declaration. We have adjusted your return accordingly.

443

478

We didn’t allow the amount claimed for the American Opportunity Tax Credit on your Form 1040-SS, U.S. Self-Employment Tax Return. We’re returning any supporting documentation you submitted. Bona fide residents of Puerto Rico receive the refundable part of this credit from the Puerto Rico Treasury Department by filing a return with the Departamento de Hacienda, PO Box 9022501, San Juan, PR 00902-2501. No permitimos la cantidad reclamada para el Crédito Contributivo de Oportunidad para los Estadounidenses en su Formulario 1040-SS (sp), Planilla para la Declaración de la Contribución Federal sobre el Trabajo por Cuenta Propia. Estamos devolviendo toda la documentación de apoyo que usted envió. Los residentes bona fide de Puerto Rico reciben la parte reintegrable de este crédito del Departamento del Tesoro de Puerto Rico, al radicar la planilla con el Departamento de Hacienda, PO Box 9022501, San Juan, PR 00902-2501.

Exceptions & meaning →

Note:¶

Exceptions & meaning →

Error Code 369 - 1 percent Refund/Total Tax Liability ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡¶

EC 368 generates when Total Tax Liability is inconsistent with other data. Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 369 for invalid conditions.

Refer to both IRM 3.12.3, and IRM 3.22.3 for correction procedures and allowable TPNCs.

If the taxpayer has an amount written in on line 6 Form 1040-SS refer to IRM 3.22.3.247.7 EC 334.

Exceptions & meaning →

Fields Displayed - EC 369¶

The following fields are displayed for EC 369.

1040-NR

1040-SS (sp)/1040-SS

Field Title

01FSC

Filing Status Code

01EXC

Exemption Code

94EXV

Exemption Code Verified

03DSI

Dependent Status Indicator

0403

Combined Schedule C Profit/Loss

Combined Schedule C Profit/Loss Computer

03CGL

Schedule D Profit/Loss

Schedule D Profit/Loss Computer

0405

Schedule E Profit/Loss

Schedule E Profit/Loss Computer

0406

Combined Schedule F Profit/Loss

Combined Schedule F Profit/Loss Computer

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

03INC

Taxable Income

Taxable Income Computer

94INV

Taxable Income Verified

03TTX

Tentative Tax

Tentative Tax Computer

05USS

Unpaid Tax on TIPS SST

05TAT

Total Additional Taxes

03GTT

Transportation Tax

03OTX

Total Other Taxes

Total Other Taxes Computer

03TAX

Total Tax IMF

Total Tax IMF Computer

03WH

Withholding from Form(s) W-2 or 1099

0325E

Withholding from Form(s) 8805

0325F

Withholding from Form(s) 8288-A

0325G

Withholding from Form(s) 1042-S

03CEL

Estimated Tax Credit Elect

03BDR

Balance Due/Refund

Balance Due/Overpayment Computer

03BDR>

Balance Due/Refund Taxpayer Computer

Exceptions & meaning →

Error Code 370/670 - Balance Due/Refund¶

EC 370 generates when Balance Due/Overpayment is not equal to Balance Due/Overpayment Computer and a math error is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 370, for invalid conditions and refer to both IRM 3.12.3 and IRM 3.22.3 for correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 370¶

The following fields are displayed for EC 370.

1040-NR

1040-SS (sp)/1040-SS

Field Title

01FSC

Filing Status Code

01TXP

Tax Period

01CCC

Computer Condition Code

03PT

Preparer's TIN

03TAX

Total Tax IMF

Total Tax Liability Computer

03WH

Withholding from Form(s) W-2 or 1099

0325E

Withholding from Form(s) 8805

0325F

Withholding from Form(s) 8288-A

0325G

Withholding from Form(s) 1042-S

03ESP

Estimated Tax Payments

05ESS

Excess Social Security

03ACT

Additional Child Tax Credit

03RAC

Refundable Adoption Credit

03RAC>

Refundable Adoption Credit Computer

05PTC

Taxpayer Reconciled Premium Tax Credit Amount

05PTC>

Taxpayer Reconciled Premium Tax Credit Amount Computer

05EXT

Form 4868 Credit

05ESS

Excess Social Security

05FUE

F4136 Fuel Tax Credit

F4136 Fuel Tax Credit Computer

05RIC

Form 2439 Regulated Investment Company Credit

0329

Form 1040C Credit

05OTH

Other Payment or Credit Amount (ERS only)

05TYP

Payment or Credit Type Code(ERS only)

05OPR

Total Other Payments and Refundable Credits

03PAY

Total Payments

Total Payments Computer

03CEL

Estimated Tax Credit Elect

03BDR

Balance Due/Refund

Balance Due/Overpayment Computer

03BDR>

Balance Due/Overpayment Taxpayer Computer

03ETP

Estimated Tax Penalty

Exceptions & meaning →

Note:¶

The fields displayed for EC 670 will include a Clear Code field and 02NC> and all other fields will be the same as EC 370.

Exceptions & meaning →

Correction Procedures - EC 370 Form 1040-SS (sp) and Form 1040-SS¶

This subsection includes instructions for the following:

Balance Due Overpayment

Balance Due Refund

Exceptions & meaning →

Field 03BDR> - Balance Due Overpayment Taxpayer Computer¶

Correct coding and transcription errors and misplaced entries in displayed fields when the underprint for Field 03BDR> differs from the taxpayer's amount.

To arrive at 03BDR>, the computer adds Field 03BDR to Field 03CEL.

To arrive at the underprint for Field 03BDR> the computer subtracts Total Payments Computer from Total Tax Computer and adds Pre-determined ES Tax Penalty.

Adjust the entry in Field 03BDR by subtracting the appropriate amount from the overpaid amount when the taxpayer computed the overpaid amount (line 13) correctly, but failed to reduce the amount by either the Credit Election Amount or the Estimated Tax Penalty.

If the taxpayer made a math error, verify that the full amount of Credit Election Amount which the taxpayer intended is shown in the Credit Election Amount (Field 03CEL).

Refer to the following table if the Refund line and the Credit Election Amount (Field 03CEL) have identical amounts:

Then

Estimated Tax Payments (Field 03ESP) are not claimed,

Delete the Credit Election Amount (Field 03CEL).

Estimated Tax Payments (Field 03ESP) are claimed,

Delete the Balance Due/Refund (03BDR) amount.

The title of the Credit Election Amount (Field 03CEL) line has been altered by the taxpayer (i.e., the taxpayer indicates that part or all of the refund should be applied to a previous tax balance),

Ignore the change and enter the entire overpayment into Field 03BDR.

Exceptions & meaning →

Field 03BDR - Balance Due/Refund¶

Compute the Balance Due/Refund amount and enter the amount with the appropriate sign (you must enter (-) if the result is negative) when all the following conditions apply:

Refund line 14a (TY19, line 13a) and Amount You Owe line 16 (TY19, line 15) are blank and

Taxpayer has an entry in Total Tax (line 6) and

Code & Edit did not compute

Verify that Field 03BDR reflects the taxpayer's amount for Balance Due/Refund.

If the taxpayer included penalties (other than ES Penalty) and/or interest in Field 03BDR, and includes the amount in the Balance Due/Refund, then subtract that amount from Field 03BDR.

If the taxpayer entered their balance due amount on the refund line (or vice versa) and there is no previous math error, adjust ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

If none of the preceding procedures resolve the math error condition for:

Form 1040-SS (sp) - assign TPNC 489.

Form 1040-SS - assign TPNC 474.

Exceptions & meaning →

Allowable Taxpayer Notice Codes - EC 370¶

Use the followings TPNCs for EC 370.

TPNC

Literal

Any previously assigned TPNC

100

114

You didn't include all the income shown on your Form(s) W-2, W-2G, etc., in the income section.

115

We adjusted total income to include tips from Form 4137.

141

We found an error in the computation of the total income on page 1 of your tax return. (Form 1040/Form 1040-NR)

205

Your SSN or name does not match the records provided by the Social Security Administration. As a result, we did not allow your personal exemption. (Form 1040/Form 1040-NR)

208

We changed the amount of taxable income on your return because there was an error in the subtraction of your exemption or combined standard deduction/exemption amount. (Form 1040)

209

We changed the amount of tax shown on your return. The amount entered was incorrect based on your taxable income and filing status. (Form 1040/Form 1040-NR)

211

217

Based on our computation of your taxable income, you don't owe any tax. (Form 1040/Form 1040-NR)

218

We computed your tax for you. (Form 1040/Form 1040-SS)

233

We didn’t allow the amount claimed as credit for child and dependent care expenses on your tax return. To qualify for this credit, earned income must be reported on line 4 (lines 4 and 5 if married filing jointly) of Form 2441, Child and Dependent Care Expenses.

246

Disallowed all or part of your Retirement Savings Contribution Credit. The credit is not allowed if you are not at least 18 years of age at the end of the tax year. (Form 1040/Form 1040-NR)

247

Computed or transferred Form 8880 incorrectly. (Form 1040/Form 1040-NR)

252

You incorrectly figured your child tax credit. (Form 1040/Form 1040-NR)

273

We reduced or removed the total self-employment tax on your tax return. Your net earnings were less than $400; therefore, they are not subject to self-employment tax.

283

We adjusted your federal income tax withheld to reflect the amounts shown on Form(s) W-2 or other supporting documents. (Form 1040/Form 1040-NR)

294

We changed the amount claimed as excess social security tax withheld or tier 1 RRTA withheld. (Form 1040/Form 1040-NR)

297

We found an error in the addition of the payments section on your tax return. (Form 1040/Form 1040-NR)

299

We found an error in the computation of your refund amount or the amount you owe.

302

You must figure your tax using the Foreign Earned Income Tax Worksheet. It appears your tax was not computed using this worksheet or was computed incorrectly. We have changed your tax return accordingly.

311

We transferred the information from the tax form you filed and processed it as a Form 1040-NR.

329

We changed the amount of total tax on line 6 of your Form 1040-SS because there was an error adding Lines 3 through 5. (1040-SS)

331

We changed the amount claimed as excess social security tax withheld or tier 1 RRTA withheld on page 1 of your tax return due to a computation error.

332

We didn't allow the amount claimed for additional child tax credit 499R-2, W-2PR or other supporting documents were not attached to your tax return. (Form 1040-SS)

341

We changed the amount claimed as credit on Form 8689, it can't be more than the total tax due on your Form 1040.

343

We didn't allow your earned income tax credit because you excluded income under Section 931, Section 933, or Form 4563 or you did not maintain a home in the United States for 6 months or more. (Form 1040)

345

We didn't allow the amount claimed as excess social security tax or tier 1 RRTA withheld on line 8 of your Form 1040-SS because Form(s) W-2PR, 499R was not attached to your tax return. (1040-SS)

346

We changed the amount claimed as total payments on line 11 of our Form 1040-SS because there was an error in the addition of the payments section on your tax return. (Form 1040-SS)

355

356

We changed the amount reported as Additional Medicare Tax, Form 8959 on page 2 of your tax return. There was an error transferring the amount from line 18 of your Form 8959 to page 2 of your tax return. (Form 1040-NR/Form 1040-SS (sp)/SS)

357

An error was made transferring from line 24, Form 8959, to your tax return.(Form 1040-NR/Form 1040-SS (sp)/SS)

359

We changed the amount of total tax on line 6 of your Form 1040-SS (sp). Corregimos la cantidad total de la contribución en la Línea 6 de su Forma 1040-SS (sp), porque sumando la Línea 3 hasta la 5 hubo un error. (1040-SS (sp))

361

We changed the amount claimed as excess social security tax withheld or tier 1 RRTA

362

We didn't allow the amount claimed as additional child tax credit.

No le concedimos la cantidad reclamada como crédito contributivo adicional por hijo porque la/las Forma(s) 499R-2, W-2PR u otros comprobantes no fueron incluídos en su planilla de contribución. (Form 1040-SS (sp))

374

We changed the refund or amount you owe based on the information you provided in response to our previous correspondence.

Corregimos su contribución basado en la información que usted proveyó en la contestación a nuestra correspondencia anterior. (Form 1040-SS (sp))

375

We didn't allow the amount claimed as excess social security tax or tier 1 RRTA withheld.

No le concedimos la cantidad reclamada de la retención del exceso de la contribución del seguro social ó lo dispuesto en la retención del RRTA 1 en la Línea 7 de su Forma 1040-SS (sp), porque la/las Formas 499R-2/W-2PR no fueron incluídas a su planilla contributiva. (Form 1040-SS (sp))

376

We changed the amount claimed as total payments on your tax return because there was an error in the addition of the payments section.

Corregimos la cantidad reclamada como pagos totales en su planilla contributiva porque hubo un error en la sección de la suma de los pagos. (Form 1040-SS (sp))

377

Information provided to the IRS indicates that you are not eligible to claim the Health Coverage Tax Credit.

406

Disallowed treaty exemption claim because you didn’t reply with more information. (Form 1040-NR)

409

Disallowed invalid tax treaty claim. (Form 1040-NR)

418

You aren’t entitled to the standard deduction when you file Form 1040-NR. We changed your return accordingly.

430

We can’t allow the amount you reported as tax withheld. You didn’t attach Form(s) W-2, 1042-S, 1099 or other supporting documents as required. We have changed your tax return accordingly. (Form 1040-NR )

432

We can’t allow the amount you reported for Income Tax Withheld At Source. You didn’t attach Form 1042-S to verify the amount as required. We have changed your tax return accordingly. (Form 1040-NR)

433

We didn't allow the amount withheld by a "Partnership Under Section 1446" . You didn’t attach Form 8805. (Form 1040-NR)

434

We have no record of the payment shown on Form 8288-A. We have adjusted your return accordingly. (Form 1040 and Form 1040-NR)

435

We can’t allow the amount you reported as “U.S. Tax Withheld on Dispositions of U.S. Real Property Interests”. You didn’t attach Form(s) 8288-A and/or 1042-S to verify the amount as required. We have changed your tax return accordingly. (Form 1040-NR)

436

Our records indicate that the amount of your Form 8288-A credit is less than you claimed. We have adjusted your return accordingly. (Form 1040-NR)

438

We didn't allow the foreign Withholding claimed on your return. (Form 1040-NR)

441

We can’t allow your Form 8805 or Form 1042-S credit because the Social Security number shown on your Form 1040-NR and the credit document do not match. We have adjusted your return accordingly. (Form 1040-NR)

442

You did not reply to our request for a copy of your green card and signed declaration.

443

449

We changed the amount of taxable income on your tax return because the exemption amount was subtracted incorrectly. (Form 1040-NR)

457

We changed your total exemption amount because there was an error in the computation of your total exemption amount.

458

You did not claim the exemption amount for yourself. We allowed your personal exemption on your return.

472

You don't owe self-employment tax when your net earnings from self-employment are less than $434, as shown on Form 1040-SS.

473

You figured or transferred your social security self-employment tax incorrectly on Form 1040-SS.

474

You figured your refund or the amount you owe incorrectly on Form 1040-SS.

485

You don't qualify to use the optional method on Form 1040-SS (sp).

Usted no califica para usar el metodo opcional en la Forma 1040-SS (sp).

486

You didn’t multiply your self-employment earnings by .9235, as shown on Form 1040-SS (sp). We changed your self-employment tax accordingly.

487

You don't owe self-employment tax when your net earnings from self-employment are less than $434.

Usted no debe contribución sobre el trabajo por cuenta propia cuando sus ganancias netas del trabajo por cuenta propia son menores de $434, como esta mostrado en la Forma 1040-SS (sp).

488

You figured or transferred your social security self-employment tax incorrectly on Form 1040-SS (sp).

Usted calculó o transfirió incorrectamente la contribución sobre el trabajo por cuenta propia. Por lo tanto, le cambiamos su contribución sobre el trabajo por cuenta propia. (1040-SS (sp))

489

You figured your refund or the amount you owe incorrectly on Form 1040-SS (sp).

Usted calculó incorrectamente su reintegro o la cantidad que usted adeuda en el Formulario 1040-SS (sp). (1040-SS (sp)).

494

We disallowed part of the tax treaty exemption on your return because you claimed more than the maximum amount. We have adjusted your return accordingly.

504

We changed the total other payments and refundable credits you claimed because you either didn’t complete Schedule 3, Additional Credits and Payments, or you didn’t attach it to your tax return.

507

We didn’t allow the amount claimed as other payments on page 2 of your tax return because no form was submitted to substantiate the amount.

558

We changed the refund amount or the amount you owe on your tax return based on the information you provided in response to our previous correspondence.

582

We didn’t allow the amount claimed as federal income tax withheld on your tax return because Form(s) W-2 or other supporting documents were not attached to your tax return. (Form 1040)

590

We didn’t allow the amount claimed as excess social security tax and tier 1 tax withheld on your tax return because your Forms W-2 were not attached to your tax return.

Exceptions & meaning →

Note:¶

Exceptions & meaning →

Error Code 372 - $1,000,000 or More Refund¶

EC 372 generates when Balance Due/Overpayment ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 372, for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 372¶

The following fields are displayed for EC 372.

Exceptions & meaning →

Error Code 374 - Pre-Determined ES Penalty¶

EC 374 generates when Estimated Tax Penalty is significant and is inconsistent with other data.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 374 for invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Fields Displayed - EC 374¶

The following fields are displayed for EC 374.

1040-NR

1040-SS (sp)/1040-SS

Field Title

Clear Code

01CCC

Computer Condition Code

03PT

Preparer's TIN

03TAX

Total Tax IMF

Total Tax IMF Computer

03WH

Withholding from Form(s) W-2 or 1099

0325E

Withholding from Form(s) 8805

0325F

Withholding from Form(s) 8288-A

0325G

Withholding from Form(s) 1042-S

03ESP

Estimated Tax Credit

03ETP

Estimated Tax Penalty

03PC

Preparer's Code

Exceptions & meaning →

Error Code 380 Self-Employment Income and EIC¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 380 for screen display, invalid conditions, correction procedures and allowable TPNCs.

Exceptions & meaning →

Error Code 531 - ≡ ≡ ≡ Difference in Adjusted Gross Income (AGI)¶

EC 531 generates when Doc. Code is not 07, 08, 09, 10, 26, 27, 28 or 72, and all the following exist:

A math error is not present

The return is a "computed" return

The difference between the AGI and the AGI Computer is ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Tentative Tax Computer is not significant.

Other Income Amount is present.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 531 for correction procedures.

Exceptions & meaning →

Fields Displayed - EC 531¶

The following fields are displayed for EC 531.

1040-NR

Field Title

Clear Code

01FSC

Filing Status Code

01TXP

Tax Period

01RPC

Return Processing Code

01CCC

Computer Condition Code

03TTX

Tentative Tax

Tentative Tax Computer

03TWG

Total Wages Amount

03INT

Taxable Interest

03TEI

Tax Exempt Interest

03DIV

Ordinary Dividends

03QD

Qualified Dividends

0401

State Income Tax Refund

04SFG

Scholarship or Fellowship Grant

0403

Combined Schedule C Profit/Loss

Combined Schedule C Profit/Loss Computer

03CGL

Schedule D Profit/Loss

Schedule D Profit/Loss Computer

0404

Supplemental Gains/Losses

03GIR

Gross IRA Distribution

03TIR

Taxable IRA Distribution

03GPA

Gross Pensions and Annuities

03TPA

Taxable Pensions and Annuities

0405

Schedule E Profit/Loss

Schedule E Profit/Loss Computer

0406

Combined Schedule F Profit/Loss

Combined Schedule F Profit/Loss Computer

0407

Taxable Unemployment Compensation

04OTI

Other Income Amount

03TEX

Treaty Exempt Income

03TOT

Total Income

Total Income Computer

04EDU

Educator Expenses

Educator Expenses Computer

04HSA

Health Savings Account Deduction

Health Savings Account Deduction Computer

04MOV

Moving Expenses

04DSE

Deduction for Self-Employment Tax

Deduction for Self-Employment Tax Computer

04SEP

SE Retirement Plans Deduction

04HID

Self Employed Health Insurance Deduction

04PEW

Penalty on Savings Withdrawal

04IRA

IRA Deduction

IRA Deduction Computer

04SLI

Student Loan Interest Deduction

Student Loan Interest Deduction Computer

04MSA

Archer MSA Deduction

Archer MSA Deduction Computer

04ADJ

Other Adjustments

03TAJ

Total Adjustments

Total Adjustments Computer

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

Exceptions & meaning →

Error Code 601 - RPC J¶

EC 601 generates when Document Code is not 26, 27, or 72, Return Processing Code is not "J" or "Y" and it's inconsistent with other data.

Exceptions & meaning →

Fields Displayed - EC 601¶

The following fields are displayed for EC 601.

1040-NR

Field Title

01RPC

Return Processing Code

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

03INC

Taxable Income

Taxable Income Computer

03TTX

Tentative Tax

Tentative Tax Computer

05202

Alternative Minimum Tax

Alternative Minimum Tax Computer

03TAC>

Income Tax After Credit Computer

05204

Combined SE Tax

Combined SE Tax Computer

05SSM

Unreported Social Security and Medicare Tax for Form 4137 and Form 8919

Unreported Social Security and Medicare Tax for Form 4137 and Form 8919 Computer

05IRA

Combined Tax on Retirement Plans

05IRA>

Combined Tax on SST Retirement Plans Computer

05HSH

Household Employment Tax Amount

Household Employment Tax Amount Computer

05FHB

First Time Home Buyer Repayment from Form 5405

Combined First Time Homebuyer Credit Repayment Computer

58FRC>

Section 58 Homebuyer Credit Repayment Computer Form 8611 Recapture (ERS only)

05LIR

Form 8611 Recapture (ERS only)

05USS

Unpaid SST Tax on Tips

7118>

Form 8959 Additional Medicare Tax Amount Computer

7217>

Form 8960 Net Investment Income Tax Computer

05TAT

Total Additional Taxes

03OTX

Total Other Taxes

Total Other Taxes Computer

03TAX

Total Tax IMF

Total Tax IMF Computer

94TXV

Total Tax Verified

Exceptions & meaning →

Invalid Condition - EC 601¶

EC 601 generates when:

Doc. Code is not 26, 27, or 72,

RPC is not "J" or "Y" ,

Tax on Income Not Effectively Connected is not significant and

Either Combined SE Tax Computer is not significant or is not equal to Total Tax Computer or

Tentative Tax Computer is significant and RPC "J" is not present and

Total Tax exceeds 50 percent of Adjusted Gross Income

Exceptions & meaning →

Correction Procedures - EC 601¶

Correct coding, transcription and misplaced entries on fields displayed.

If no other correction, enter RPC "J" in Field 01RPC.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 601 for screen display and invalid conditions.

Exceptions & meaning →

Error Code 702¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 702 for screen display and invalid conditions.

Delete entries if present in fields displayed.

Exceptions & meaning →

Reminder:¶

Unallowable codes aren’t used on international returns.

Exceptions & meaning →

Error Code 704 - Unallowable Amount with No Code¶

EC 704 generates when the unallowable code is other than 20 and the unallowable amount is not significant.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 704 for invalid conditions.

Delete entries if present in fields displayed.

Exceptions & meaning →

Reminder:¶

Unallowable codes aren’t used on international returns.

Exceptions & meaning →

Fields Displayed - EC 704¶

The following fields are displayed for EC 704.

1040-NR

Field Title

88CD1

Unallowable Code 1

88AM1

Unallowable Amount 1

88CD2

Unallowable Code 2

88AM2

Unallowable Amount 2

88CD3

Unallowable Code 3

88AM3

Unallowable Amount 3

88AGI

Unallowable Adjusted Gross Income

88ITM

Unallowable Itemized Deductions

88NI

Unallowable Net Income

88TXA

Unallowable Tax Adjustment

94UTV

Unallowable Tax Verified

88TX>

Total Tax on Unallowable Computer

Exceptions & meaning →

Error Code 706 - Unallowable Codes 92 to 99 (Except UA 95)¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 706 for screen display and invalid conditions.

Delete entries if present in fields displayed.

Exceptions & meaning →

Reminder:¶

Unallowable codes aren’t used on international returns.

Exceptions & meaning →

Error Code 708 - Unallowable Codes 30 to 49 Schedule A¶

EC 708 generates when the unallowable code is 30 through 49 and Total Itemized Deduction Computer is not significant.

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 708 for invalid conditions.

Delete entries if present in Section 88 fields that are displayed.

Exceptions & meaning →

Reminder:¶

Unallowable codes aren’t used on international returns.

Exceptions & meaning →

Fields Displayed - EC 708¶

The following fields are displayed for EC 708.

1040-NR

Field Title

88CD1

Unallowable Code 1

88AM1

Unallowable Amount 1

88CD2

Unallowable Code 2

88AM2

Unallowable Amount 2

88CD3

Unallowable Code 3

88AM3

Unallowable Amount 3

88AGI

Unallowable Adjusted Gross Income

88ITM

Unallowable Itemized Deductions

88NI

Unallowable Net Income

88TXA

Unallowable Tax Adjustment

94UTV

Unallowable Tax Verified

88TX>

Total Tax on Unallowable Computer

S07NP

Section 07 Not Present

State and Local Income Taxes

0708

Total Itemized Deductions

Total Itemized Deductions Computer

Exceptions & meaning →

Error Code 712 - Unallowable Tax Verified Missing¶

EC 712 generates when an unallowable code is present or Form 4563 Indicator is significant with FLC 21 and more than one exemption.

Delete entries if present in Section 88 fields that are displayed. Don’t delete the "1" in Field 8808 if Form 4563 is present.

Exceptions & meaning →

Reminder:¶

Unallowable codes aren’t used on international returns.

Exceptions & meaning →

Fields Displayed - EC 712¶

The following fields are displayed for EC 712.

1040-NR

Field Title

01FSC

Filing Status Code

01EXC

Exemption Code

88CD1

Unallowable Code 1

88AM1

Unallowable Amount 1

88CD2

Unallowable Code 2

88AM2

Unallowable Amount 2

88CD3

Unallowable Code 3

88AM3

Unallowable Amount 3

88AGI

Unallowable Adjusted Gross Income

88ITM

Unallowable Itemized Deductions

88NI

Unallowable Net Income

88TXA

Unallowable Tax Adjustment

94UTV

Unallowable Tax Verified

88TX>

Total Tax on Unallowable Computer

03TOT

Total Income

Total Income Computer

03TAJ

Total Adjustments

Total Adjustments Computer

03AGI

Adjusted Gross Income

Adjusted Gross Income Computer

03INC

Taxable Income Amount

Taxable Income Amount Computer

03TTX

Tentative Tax

Tentative Tax Computer

94TTV

Tentative Tax Verified

05SSM

Combined Unreported Tips/Social Security Tax

Combined Unreported Tips/Social Security Tax Computer

03TAX

Total Tax IMF

Total Tax IMF Computer

94TXV

Total Tax Verified

State and Local Income Taxes

0708

Total Itemized Deductions

Total Itemized Deductions Computer

Exceptions & meaning →

Error Code 714 - Unallowable Tax Verified¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 714 for screen display and invalid conditions.

Delete entries if present in Section 88 fields that are displayed. Don’t delete the "1" in Field 8808 if Form 4563 is present.

Exceptions & meaning →

Reminder:¶

Unallowable codes aren’t used on international returns.

Exceptions & meaning →

Error Code 716 - Unallowable Tax Verified¶

EC 716 generates when Unallowable Tax verified is significant and none of the following are significant:

Tentative Tax Verified

Total Tax Verified

Credit for the Elderly Verified

Delete entries if present in Section 88 fields that are displayed. Don’t delete the "1" in Field 8808 if Form 4563 is present.

Exceptions & meaning →

Reminder:¶

Unallowable codes aren’t used on international returns.

Exceptions & meaning →

Fields Displayed - EC 716¶

The following fields are displayed for EC 716.

1040-NR

Field Title

94UTV

Unallowable Tax Verified

94TTV

Tentative Tax Verified

94TXV

Total Tax Verified

Exceptions & meaning →

Error Code 718 - Unallowable Tax Verified¶

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns, EC 718 for screen display and invalid conditions.

GTSEC 88 and delete the unallowable codes and amounts if present. Don’t delete the "1" in Field 8808 if Form 4563 is present.

Exceptions & meaning →

Reminder:¶

Unallowable codes aren’t used on international returns.

Exceptions & meaning →

Error Code 750 - ACA¶

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Refer to IRM 3.12.3, Error Resolution, Individual Income Tax Returns for screen display, invalid conditions and correction procedures.

Exceptions & meaning →

Correction Procedures - EC 750¶

Form 8606 when you cannot determine the liable taxpayer.

EC 028, or EC 029, appears after Code & Edit has corresponded or ERS has corresponded for "field errors" only.

Schedule NEC, Form 1040-NR, missing or incomplete.

ACA Error Codes 068, 100, 101, 190, 191, 192, 193, 194, 195, 196, 197, 198, 199, 270, and 352 after first correspondence and the taxpayer provided a complete reply. Suspend with Action Code 216. Follow the procedures under the error code for the appropriate paragraph(s) to select.

Exceptions & meaning →

Exception:¶

If the previous correspondence was issued for any ACA Error Code 190 through 199, EC 270 or EC 3524 and another ACA error code displays for the return requesting additional information, do not correspond. Follow No Reply procedures.

Exceptions & meaning →

Note:¶

Use Form 13900 (Letter 4087C) and Form 13975 (Letter 2894C/SP) for all international second correspondence instead of Letter 1263C. Include fill-in “K” in paragraph $ of Form 13900 from Exhibit 3.22.3-12.

Do not correspond again if the information was previously requested and the taxpayer did not furnish the information or furnished an incomplete response. Treat the return as a No Reply and apply procedures for a math error. Refer to Exhibit 3.22.3-10 to determine the correct action to take for No Reply to correspondence when these items were requested during the first correspondence.

Exceptions & meaning →

No Reply/Incomplete Reply/Undeliverables¶

If you have a No Reply, Incomplete Reply (meaning the taxpayer's response was incomplete, not the IRS's request being incomplete), or Undeliverable, CCC U must be entered in Field 01CCC.

Exceptions & meaning →

Note:¶

CCC U suppresses Credit Interest from accruing on the return. When CCC U is entered, do NOT enter the RPD (Field 88RPD).

CCC U should NOT be present if the correspondence was issued in error.

Follow the instructions for "Action To Be Taken" , in Exhibit 3.22.3-10.

If initial correspondence is undeliverable, look for the presence of USPS forwarding label (especially an expired label) and reissue correspondence to the address shown on the label if different from the address on the return.

If no USPS forwarding label is attached, research IDRS to locate a better (or more current) address.

If research shows a more current address, reissue correspondence using the address found on IDRS and SSPND 215.

If research shows the same address and same DLN (no additional DLNs), process the return using No Reply procedures in Exhibit 3.22.3-10.

If research shows a different DLN for the same tax period with the same address for the taxpayer, AND the return is located and it is open in ERS, refer to lead tax examiner for further instructions.

Exceptions & meaning →

Tax Treaty Table 2. Compensation for Personal Services Performed in United States…¶

Tax Treaty Table 2. Compensation for Personal Services Performed in United States Exempt from U.S. Income Tax Under Income Tax Treaties is used to verify tax treaty claims exempting personal services compensation. The table lists the different types of personal services income that may be fully or partly exempt from U.S. income tax. The income code numbers in column (2) are for TY 2020. See IRM 3.22.3.4 for cross reference to income codes in prior years. Use this table and the footnote references to verify tax treaty claims following the guidance in, IRM 3.22.3.17.3 Field 03TEX - Total Income Exempt by Treaty, and the instructions in EC 218.

Table 2. Compensation for Personal Services Performed in United States Exempt from U.S. Income Tax Under Income Tax Treaties

Country

Code1

Purpose22

Maximum Presence in U.S.

Required Employer or Payer

Maximum Amount of Compensation

Treaty Article Citation

Armenia - see C.I.S

Australia

Independent personal services7

183 days

Any contractor

No limit

Australia

Dependent personal services17,47,57

183 days

Any foreign resident

No limit

Australia

Public entertainment

No limit

Any U.S. or foreign resident

$10,000 p.a25

Australia

Studying and training: Remittances or allowance11

No limit

Any foreign resident

No limit

Austria

Independent personal services7

No limit

Any contractor

No limit

Austria

Dependent personal services17,58

183 days

Any foreign resident

No limit

Austria

Public entertainment

No limit

Any U.S. or foreign resident

$20,000 p.a25

Austria

Studying and training: Remittances or allowance11

3 years45

Any foreign resident

No limit

Azerbaijan - see C.I.S

Bangladesh

Scholarship or fellowship grant4

2 years45

Any U.S. or foreign resident 5

No limit

21(2)

Bangladesh

Independent personal services7

183 days

Any contractor

No limit

Bangladesh

Dependent personal services17,57

183 days

Any foreign resident

No limit

Bangladesh

Public entertainment

No limit

Any contractor

$10,000 p.a.30

Bangladesh

Teaching or research4

2 years

Any U.S. or foreign resident

No limit

21(1)

Bangladesh

Studying and training:4 Remittances or allowances

2 years45

Any foreign resident

No limit

21(2)

Bangladesh

Studying and training:4 Compensation during study or training

2 years45

Any U.S. or foreign resident

$8,000 p.a.

21(2)

Barbados

Independent personal services7,8,47

89 days

Any foreign contractor

No limit

Barbados

Independent personal services7,8,47

89 days

Any U.S. contractor

$5,000 p.a.

Barbados

Dependent personal services8,17,58

183 days

Any foreign resident

$5,000 p.a.

Barbados

Public entertainment

No limit

Any U.S. or foreign resident

$250 per day or $4,000 p.a. 6,50

Barbados

Studying and training:23 Remittances or allowances11

No limit

Any foreign resident

No limit

Belarus - see C.I.S

Belgium

Independent personal services12,53

Belgium

Dependent personal services12,17,57

183 days

Any foreign resident

No limit

Belgium

Public entertainment

No limit

Any U.S. or foreign resident

$20,000 p.a.25

Belgium

Teaching4

2 years

Any U.S. educational or research institution

No limit

19(2)

Belgium

Studying and training:11 Remittances or allowances

2 years45

Any foreign resident

No limit

19(1)(a)

Belgium

Studying and training:11 Compensation during study or training

2 years45

Any U.S. or foreign resident

$9,000 p.a.

19(1)(b)

Bulgaria

Independent personal services53

Bulgaria

Dependent personal services8,17,57

183 days

Any foreign resident

No limit

Bulgaria

Public entertainment

No limit

Any U.S. or foreign resident

$15,000 p.a.25

Bulgaria

Teaching4

2 years

Any U.S. educational or research institution

No limit

19(2)

Bulgaria

Studying and training:11 Remittances or allowances

2 years45

Any foreign resident

No limit

19(1)(a)

Bulgaria

Studying and training:11 Compensation during study or training

2 years45

Any U.S. or foreign resident

$9,000 p.a.

19(1)(b)

Canada

Independent personal services53

VII

Canada

Dependent personal services57

No limit

Any U.S. or foreign resident

$10,000

Canada

Dependent personal services57

183 days

Any foreign resident17

No limit13

Canada

Public entertainment54

No limit

Any U.S. or foreign resident

$15,000 p.a.25

XVI

Canada

Studying and training:11 Remittances or allowances

No limit52

Any foreign resident

No limit

China, People's Rep. of

Scholarship or fellowship grant15

No specific limit

Any U.S. or foreign resident5

No limit

20(b)

China, People's Rep. of

Independent personal services7,8

183 days

Any contractor

No limit

China, People's Rep. of

Dependent personal services8,17,58

183 days

Any foreign resident

No limit

China, People's Rep. of

Public entertainment29

China, People's Rep. of

Teaching4

3 years

U.S. educational or research institute

No limit

China, People's Rep. of

Studying and training: Remittances or allowances

No specific limit

Any foreign resident

No limit

20(a)

China, People's Rep. of

Studying and training: Compensation during training or while gaining experience

No specific limit

Any U.S. or foreign resident

$5,000 p.a.

20(c)

C.I.S (Commonwealth of Independent States) (See Note below table)

Scholarship or fellowship grant

5 years

Any U.S. or foreign resident

Limited19

VI(1)

C.I.S

Independent personal services

183 days

Any U.S. or foreign contractor

No limit

VI(2)

C.I.S

Dependent personal services

183 days

Any U.S. or foreign resident

No limit

VI(2)

C.I.S

Teaching4,20

2 years

Any U.S. educational or scientific institution

No limit

VI(1)

C.I.S

Studying and training: Remittances or allowances

5 years

Any U.S. or foreign resident

Limited

VI(1)

C.I.S

Studying and training: Compensation while gaining experience

1 year

C.I.S. resident

No limit21

VI(1)

C.I.S

Studying and training: Compensation under U.S. government program

1 year

Any U.S. or foreign resident

No limit

VI(1)

Cyprus

Scholarship or fellowship grant15

Generally, 5 years

Any U.S. or foreign resident5

No limit

21(1)

Cyprus

Independent personal services7,12

182 days

Any contractor

No limit

Cyprus

Dependent personal services17,58

182 days

Any foreign resident

No limit

Cyprus

Public entertainment

No limit

Any U.S. or foreign resident

$500 per day or $5,000 p.a.6

19(1)

Cyprus

Studying and training: Remittances or allowances

Generally, 5 years

Any foreign resident

No limit

21(1)

Cyprus

Studying and training: Compensation during training

Generally, 5 years

Any U.S. or foreign resident

$2,000 p.a.

21(1)

Cyprus

Studying and training: Compensation while gaining experience2

1 year

Cyprus resident

$7,500

21(2)

Cyprus

Studying and training: Compensation under U.S. government program

1 year

U.S. government or its contractor

$10,000

21(3)

Czech Republic

Scholarship or fellowship grant4,15

5 years

Any U.S. or foreign resident 5

No limit

21(1)

Czech Republic

Independent personal services7

183 days

Any contractor

No limit

Czech Republic

Dependent personal services8,17,57

183 days

Any foreign resident

No limit

Czech Republic

Public entertainment

No limit

Any U.S. or foreign resident

$20,000 p.a.30

Czech Republic

Teaching4, 35

2 years

Any U.S. educational or research institution

No limit

21(5)

Czech Republic

Studying and training:4 Remittances or allowances

5 years

Any foreign resident

No limit

21(1)

Czech Republic

Studying and training:4 Compensation during training

5 years

Any U.S. or foreign resident

$5,000 p.a.

21(1)

Czech Republic

Studying and training:4,2 Compensation while gaining experience2

12 consecutive months

Czech resident

$8,000

21(2)

Czech Republic

Studying and training:4 Compensation under U.S. government program

1 year

U.S. government

$10,000

21(3)

Denmark

Independent personal services7

No limit

Any contractor

No limit

Denmark

Dependent personal services 8,17,58

183 days

Any foreign resident

No limit

Denmark

Public entertainment

No limit

Any U.S. or foreign resident

$20,000 p.a.25

Denmark

Studying and training:4 Remittances or allowances 11

3 years45

Any foreign resident

No limit

Egypt

Scholarship or fellowship grant15

Generally, 5 years

Any U.S. or foreign resident5

No limit

23(1)

Egypt

Independent personal services

89 days

Any contractor

No limit

Egypt

Dependent personal services16,17,58

89 days

Egyptian resident

No limit

Egypt

Public entertainment

No limit

Any U.S. or foreign resident

$400 per day46

Egypt

Teaching 4, 13

2 years

U.S. educational institution

No limit

Egypt

Studying and training: Remittances or allowances

Generally, 5 years

Any foreign resident

No limit

23(1)

Egypt

Studying and training: Compensation during training

Generally, 5 years

U.S. or any foreign resident

$3,000 p.a.

23(1)

Egypt

Studying and training: Compensation while gaining experience2

12 consecutive months

Egyptian resident

$7,500

23(2)

Egypt

Studying and training: Compensation under U.S. government program

1 year

U.S. government or its contractor

$10,000

23(3)

Estonia

Scholarship or fellowship grant4

5 years

Any U.S. or foreign resident5

No limit

20(1)

Estonia

Independent personal services7

183 days

Any contractor

No limit

Estonia

Dependent personal services8,17,58

183 days

Any foreign resident

No limit

Estonia

Public entertainment

No limit

Any U.S. or foreign resident

$20,000 p.a.30

Estonia

Studying and training:4 Remittances or allowances

5 years

Any foreign resident

No limit

20(1)

Estonia

Studying and training:4 Compensation during training

12 consecutive months

Estonian resident

$8,000

20(2)

Estonia

Studying and training:4 Compensation during training

5 years

Other foreign or U.S. resident

$5,000 p.a.

20(1)

Estonia

Studying and training:4 Compensation while gaining experience2

12 consecutive months

Estonian resident

$8,000

20(2)

Estonia

Studying and training: Compensation under U.S. government program

1 year

U.S. government or its contractor

$10,000

20(3)

Finland

Independent personal services7

No limit

Any contractor

No limit

Finland

Dependent personal services17,57

183 days

Any foreign resident

No limit

Finland

Public entertainment

No limit

Any U.S. or foreign resident

$20,000 p.a.25

Finland

Studying and training: Remittances or allowances11

No limit

Any foreign resident

No limit

France

Scholarship or fellowship grant 15

5 years43

Any U.S. or foreign resident 5

No limit

21(1)

France

Independent personal services7,12

No limit

Any contractor

No limit

France

Dependent personal services8,17,58

183 days

Any foreign resident

No limit

France

Public entertainment

No limit

Any U.S. or foreign resident

$10,000 p.a.30

France

Teaching4, 44

2 years43

U.S. educational or research institution

No limit

France

Studying and training:4 Remittances or allowances

5 years43

Any foreign resident

No limit

21(1)

France

Studying and training: Compensation during study or training

12 consecutive months

French resident

$8,000

21(2)

France

Studying and training: Compensation during study or training

5 years43

Other foreign or U.S. resident

$5,000 p.a.

21(1)

France

Studying and training: Compensation while gaining experience2

12 consecutive months

French resident

$8,000

21(2)

Georgia - see C.I.S

Germany

Scholarship or fellowship grant

No limit

Any U.S. or foreign resident5

No limit

20(3)

Germany

Independent personal services53,12

Germany

Dependent personal services12,17,57

183 days

Any foreign resident

No limit

Germany

Public entertainment

No limit

Any U.S. or foreign resident

$20,000 p.a.30

Germany

Teaching4,55

2 years

U.S. educational or research institution

No limit

20(1)

Germany

Studying and training:11 Remittances or allowances

No limit

Any foreign resident

No limit

20(2)

Germany

Studying and training:11 Compensation during study or training

4 years

Any U.S. or foreign resident

$9,000 p.a.

20(4)

Germany

Studying and training:11 Compensation while gaining experience2

1 year

Any foreign resident

$10,00028

20(5)

Greece

Independent personal services

183 days

Greek resident contractor

No limit

Greece

Independent personal services

183 days

Other foreign or U.S. resident contractor

$10,000 p.a.

Greece

Dependent personal services

183 days

Greek resident

No limit

Greece

Dependent personal services

183 days

Other foreign or U.S. resident contractor

$10,000 p.a.

Greece

Teaching

3 years

U.S. educational institution

No limit

XII

Greece

Studying and training: Remittances or allowances

No limit

Any foreign resident

No limit

XIII

Hungary

Independent personal services7

183 days

Any contractor

No limit

Hungary

Dependent personal services17,57

183 days

Any foreign resident

No limit

Hungary

Teaching4

2 years

U.S. educational institution

No limit

Hungary

Studying and training:23 Remittances or allowances11

No limit

Any foreign resident

No limit

18(1)

Iceland

Scholarship or fellowship grant

5 years

Any U.S. or foreign resident5

No limit

19(1)

Iceland

Independent personal services53

Iceland

Dependent personal services8,17,58

183 days

Any foreign resident

No limit

Iceland

Public entertainment

No limit

Any U.S. or foreign resident

$20,000 p.a.25

Iceland

Studying and training: Remittances or allowances

5 years

Any foreign resident

No limit

19(1)

Iceland

Studying and training: Compensation during study or training

5 years

Any U.S. or foreign resident

$9,000 p.a.

19(1)

Iceland

Studying and training: Compensation while gaining experience

12 consecutive months

Any U.S. or foreign resident

$9,000

19(2)

Iceland

Studying and training: Compensation under U.S. Government program

1 year

U.S. Government or its contractor

$9,000

19(3)

India

Independent personal services7,8

89 days

Any contractor

No limit

India

Dependent personal services8,17,57

183 days

Any foreign resident

No limit

India

Public entertainment

No limit

Any U.S. or foreign resident

$1,500 p.a.26,50

India

Teaching4

2 years

U.S. educational institution

No limit

India

Studying and training: Remittances or allowances

Reasonable period

Any foreign resident27

No limit

21(1)

Indonesia

Scholarship and fellowship grant15

5 years

Any U.S. or foreign resident5

No limit

19(1)

Indonesia

Independent personal services7

119 days

Any contractor

No limit

Indonesia

Dependent personal services17,57

119 days

Any foreign resident

No limit

Indonesia

Public entertainment

No limit

Any U.S. or foreign resident

$2,000 p.a.25,50

Indonesia

Teaching4,44

2 years

U.S. educational institution

No limit

Indonesia

Studying and training: Remittances or allowances

5 years

Any foreign resident

No limit

19(1)

Indonesia

Studying and training: Compensation during training

5 years

Any U.S. or foreign resident

$2,000 p.a.

19(1)

Indonesia

Studying and training: Compensation while gaining experience

12 consecutive months

Any U.S. or foreign resident

$7,500

19(2)

Ireland

Independent personal services7,12

No limit

Any contractor

No limit

Ireland

Dependent personal services17,47,58

183 days

Any foreign resident

No limit

Ireland

Public entertainment

No limit

Any U.S. or foreign resident

$20,000 p.a.25

Ireland

Studying and training: Remittances or allowances11

1 year45

Any foreign resident

No limit

Israel

Scholarship and fellowship grant

5 years

Any U.S. or foreign resident5

No limit

24(1)

Israel

Independent personal services

182 days

Any contractor

No limit

Israel

Dependent personal services16,17,57

182 days

Israeli resident

No limit

Israel

Public entertainment

No limit

Any U.S. or foreign resident

$400 per day37

Israel

Teaching4,39

2 years

U.S. educational institution

No limit

Israel

Studying and training: Remittances or allowances

5 years

Any foreign resident

No limit

24(1)

Israel

Studying and training: Compensation during study or training

5 years

Any U.S. or foreign resident

$3,000 p.a.

24(1)

Israel

Studying and training: Compensation while gaining experience2

12 consecutive months

Israeli resident

$7,500

24(2)

Israel

Studying and training: Compensation under U.S. government program

1 year

U.S. government or its contractor

$10,000

24(3)

Italy

Independent personal services7

No limit

Any contractor

No limit

14(1)

Italy

Dependent personal services8,17,57

183 days

Any foreign resident

No limit

15(2)

Italy

Public entertainment

90 days

Any U.S. or foreign resident

$20,000 p.a.25

Italy

Teaching or research4

2 years

Any U.S. or foreign resident

No limit

Italy

Studying and training: Remittances or allowances

No limit

Any foreign resident

No limit

Jamaica

Independent personal services7,12

89 days

Any foreign contractor

No limit

Jamaica

Independent personal services17,12

89 days

Any U.S. contractor

$5,000 p.a.

Jamaica

Dependent personal services17,57

183 days

Any foreign resident

$5,000 p.a.

Jamaica

Public entertainment

No limit

Any U.S. or foreign resident

$400 per day or $5,000 p.a.6

Jamaica

Teaching or research4,44

2 years

U.S. educational institution

No limit

Jamaica

Studying and training:23Remittances or allowances 11

No limit

Any foreign resident

No limit

21(1)

Jamaica

Studying and training:23 Compensation during study

12 consecutive months

Jamaican resident

$7,500 p.a.

21(2)

Jamaica

Studying and training:23 Compensation while gaining experience2

12 consecutive months

Jamaican resident

$7,500 p.a.

21(2)

Japan

Independent personal services8,53

Japan

Dependent personal services8,17,57

183 days

Any foreign resident

No limit

Japan

Public entertainment

No limit

Any U.S. or foreign resident

$10,000 p.a.25

Japan

Teaching or research4

2 years

Any U.S. educational institution

No limit

Japan

Studying and training: Remittances or allowances

1 year 45

Any foreign resident

No limit

Kazakhstan

Scholarship or fellowship grant4,15,41

5 years31

Any U.S. or foreign resident5

No limit

Kazakhstan

Independent personal services7,8

183 days

Any contractor

No limit

Kazakhstan

Dependent personal services17,47,58

183 days

Any foreign resident

No limit

Kazakhstan

Studying and training:4 Remittances or allowances

5 years31

Any foreign resident

No limit

Korea, South

Scholarship or fellowship grant15

5 years

Any U.S. or foreign resident5

No limit

21(1)

Korea, South

Independent personal services7

182 days

Any contractor

$3,000 p.a.

Korea, South

Dependent personal services17,57

182 days

Korean resident18

$3,000 p.a.

Korea, South

Teaching4

2 years

U.S. educational institution

No limit

Korea, South

Studying and training: Remittances or allowances

5 years

Any foreign resident

No limit

21(1)

Korea, South

Studying and training: Compensation during training

5 years

Any foreign or U.S. resident

$2,000 p.a.

21(1)

Korea, South

Studying and training: Compensation while gaining experience 2

1 year

Korean resident

$5,000

21(2)

Korea, South

Studying and training: Compensation under U.S. government program

1 year

U.S. government or its contractor

$10,000

21(3)

Kyrgyzstan - see C.I.S

Latvia

Scholarship or fellowship grant4

5 years

Any U.S. or foreign resident5

No limit

20(1)

Latvia

Independent personal services7,8

183 days

Any contractor

No limit

Latvia

Dependent personal services8,17,58

183 days

Any foreign resident

No limit

Latvia

Public entertainment

No limit

Any U.S. or foreign resident

$20,000 p.a.30

Latvia

Studying and training:4 Remittances or allowances

5 years

Any foreign resident

No limit

20(1)

Latvia

Studying and training:4 Compensation during training

12 consecutive months

Latvian resident

$8,000

20(2)

Latvia

Studying and training:4 Compensation during training

5 years

Other foreign or U.S. resident

$5,000 p.a.

20(1)

Latvia

Studying and training: Compensation while gaining experience 2

12 consecutive months

Latvian resident

$8,000

20(2)

Latvia

Studying and training: Compensation under U.S. government program

1 year

U.S. government or its contractor

$10,000

20(3)

Lithuania

Scholarship or fellowship grant 4

5 years

Any U.S. or foreign resident 5

No limit

20(1)

Lithuania

Independent personal services7

183 days

Any contractor

No limit

Lithuania

Dependent personal services 8,17,57

183 days

Any foreign resident

No limit

Lithuania

Public entertainment

No limit

Any U.S. or foreign resident

$20,000 p.a.30

Lithuania

Studying and training:4 Remittances or allowances

5 years

Any foreign resident

No limit

20(1)

Lithuania

Studying and training4 Compensation during training

12 consecutive months

Lithuanian resident

$8,000

20(2)

Lithuania

Studying and training4 Compensation during training

5 years

Other foreign or U.S. resident

$5,000 p.a.

20(1)

Lithuania

Studying and training: Compensation while gaining experience2

12 consecutive months

Lithuanian resident

$8,000

20(2)

Lithuania

Studying and training: Compensation under U.S. government program

1 year

U.S. government or its contractor

$10,000

20(3)

Luxembourg

Independent personal services7

No limit

Any contractor

No limit

Luxembourg

Dependent personal services12,17,57

183 days

Any foreign resident

No limit

Luxembourg

Public entertainment

No limit

Any U.S. or foreign resident

$10.000 p.a.25

Luxembourg

Teaching or research9

2 years

Any U.S. or foreign resident

No limit

21(2)

Luxembourg

Studying and training: Remittances or allowances 11

2 years45

Any U.S. or foreign resident

No limit

21(1)

Malta

Independent personal services53

Malta

Dependent personal services12,17,57

183 days

Any foreign resident

No limit

Malta

Public entertainment

No limit

Any U.S. or foreign resident

$20,000 p.a.25

Malta

Studying and training: Remittances or allowances

1 year45

Any foreign resident

No limit

20(1)

Malta

Studying and training: Compensation during study or training

No limit

Any U.S. or foreign resident

$9,000 p.a.

20(2)

Malta

Studying and training: Compensation while gaining experience

No limit

Any U.S. or foreign resident

$9,000 p.a.

Mexico

Independent personal services7,8

182 days

Any contractor

No limit

Mexico

Dependent personal services17,47,57

183 days

Any foreign resident

No limit

Mexico

Public entertainment

No limit

Any U.S. or foreign resident

$3,000 p.a.30

Mexico

Studying and training: Remittances or allowances

No limit

Any foreign resident

No limit

Moldova - see C.I.S

Morocco

Scholarship or fellowship grant15

5 years

Any U.S. or foreign resident5

No limit

Morocco

Independent personal services7

182 days

Any contractor13

$5,000

Morocco

Dependent personal services17,57

182 days

Moroccan resident13,18

No limit

Morocco

Studying and training:5 Remittances or allowances

5 years

Any foreign resident

No limit

Morocco

Studying and training: 5 Compensation during training

5 years

Any U.S. or foreign resident

$2,000 p.a.

Netherlands

Scholarship or fellowship grant15,33

3 years

Any U.S. or foreign resident5

No limit

22(2)

Netherlands

Independent personal services7

No limit

Any contractor

No limit

Netherlands

Dependent personal services17,47,58

183 days

Any foreign resident

No limit

Netherlands

Public entertainment

No limit

Any U.S. or foreign resident

$10,000 p.a.25

Netherlands

Teaching4,34

2 years

U.S. educational institution

No limit

21(1)

Netherlands

Studying and training:33 Remittances or allowances

Reasonable period

Any foreign resident

No limit

22(1)

Netherlands

Studying and training:33 Compensation while gaining experience

Reasonable period

Any U.S. or foreign resident

$2,000 p.a.

22(1)

Netherlands

Studying and training:33 Compensation while recipient of scholarship or fellowship grant

Reasonable period

Any U.S. or foreign resident

$2,000 p.a.36

22(2)

New Zealand

Independent personal services53

183 days

Any U.S. or foreign resident

No limit

New Zealand

Dependent personal services17,58

183 days

Any foreign resident

No limit

New Zealand

Public entertainment

No limit

Any U.S. or foreign resident

$10,00025

New Zealand

Studying and training: Remittances or allowances11

No limit

Any foreign resident

No limit

Norway

Scholarship or fellowship grant15

5 years

Any U.S. or foreign resident5

No limit

16(1)

Norway

Independent personal services7

182 days

Any contractor

No limit

Norway

Dependent personal services17,56,59

182 days

Norwegian resident18

No limit

Norway

Public entertainment

90 days

Any contractor

$10,000 p.a.28

Norway

Teaching4

2 years

U.S. educational institution

No limit

Norway

Studying and training: Remittances or allowances

5 years

Any foreign resident

No limit

16(1)

Norway

Studying and training: Compensation during training

5 years

Any U.S. or foreign resident

$2,000 p.a.

16(1)

Norway

Studying and training: Compensation while gaining experience2

12 consecutive months

Norwegian resident

$5,000

16(2)

Norway

Studying and training: Compensation under U.S. government program

1 year

U.S. government or its contractor

$10,000

16(3)

Pakistan

Scholarship or fellowship grant15

No limit

Pakistani nonprofit organization

No limit

XIII(1)

Pakistan

Independent personal services16

183 days

Pakistani resident contractor

No limit

Pakistan

Dependent personal services16

183 days

Pakistani resident

No limit

Pakistan

Teaching

2 years

U.S. educational institution

No limit

XII

Pakistan

Studying and training: Remittances or allowances

No limit

Any foreign resident

No limit

XIII(1)

Pakistan

Studying and training: Compensation during training

No limit

U.S. or any foreign resident

$5,000 p.a.

XIII(1)

Pakistan

Studying and training:Compensation while gaining experience2

1 year

Pakistani resident

$6,000

XIII(2)

Pakistan

Studying and training: Compensation while under U.S. government program

No limit

U.S. government, its contractor, or any foreign resident employer

$10,000

XIII(3)

Philippines

Scholarship or fellowship grant15

5 years

U.S. or any foreign resident5

No limit

22(1)

Philippines

Independent personal services7

89 days

Any foreign contractor

No limit

Philippines

Independent personal services7

89 days

Any U.S. resident

$10,000 p.a.

Philippines

Dependent personal services17,57

89 days

Any Philippines resident18

No limit

Philippines

Public entertainment

No limit

Any U.S. or foreign resident

$100 per day or $3,000 p.a.28,50

Philippines

Teaching 4,38

2 years

U.S. educational institution

No limit

Philippines

Studying and training: Remittances or allowances

5 years

Any foreign resident

No limit

22(1)

Philippines

Studying and training: Compensation during study

5 years

Any U.S. or foreign resident

$3,000 p.a.

22(1)

Philippines

Studying and training: Compensation while gaining experience 2

12 consecutive months

Philippines resident

$7,500 p.a.

22(2)

Philippines

Studying and training: Compensation while under U.S. government program

1 year

U.S. government or its contractor

$10,000 p.a.

22(3)

Poland

Scholarship or fellowship grant15

5 years

U.S. or any foreign resident 5

No limit

18(1)

Poland

Independent personal services

182 days

Any contractor

No limit

Poland

Dependent personal services 17,57

182 days

Any foreign resident

No limit

Poland

Teaching 4,41

2 years

U.S. educational institution

No limit

Poland

Studying and training: Remittances or allowances

5 years

Any foreign resident

No limit

18(1)

Poland

Studying and training: Compensation during study or training

5 years

U.S. or any foreign resident

$2,000 p.a.

18(1)

Poland

Studying and training: Compensation while gaining experience2

1 year

Polish resident

$5,000

18(2)

Poland

Studying and training: Compensation while under U.S. government program

1 year

U.S. government or its contractor

$10,000

18(3)

Portugal

Scholarship or fellowship grant15

5 years

U.S. or any foreign resident5

No limit

23(1)

Portugal

Independent personal services7

182 days

Any contractor

No limit

Portugal

Dependent personal services8,17,58

183 days

Any foreign resident

No limit

Portugal

Public entertainment

No limit

Any U.S. or foreign resident

$10,000 p.a.30

Portugal

Teaching4,42

2 years

U.S. educational institution

No limit

Portugal

Studying and training:4 Remittances or allowances

5 years

Any foreign resident

No limit

23(1)

Portugal

Studying and training:4 Compensation during study or training

12 consecutive months

Portuguese resident

$8,000

23(2)

Portugal

Studying and training:4 Compensation during study or training

5 years

Other foreign or U.S. resident

$5,000 p.a.

23(1)

Portugal

Studying and training:4 Compensation while gaining experience2

12 consecutive months

Portuguese resident

$8,000

23(2)

Romania

Scholarship or fellowship grant15

5 years

Any U.S. or foreign resident5

No limit

20(1)

Romania

Independent personal services

182 days

Any contractor

No limit

Romania

Public entertainment60

90 days

Any contractor

$3,000 p.a.28

Romania

Dependent personal services17,57

182 days

Romanian resident18

No limit

Romania

Public entertainment60

89 days

Any U.S. or foreign resident

$2,999.99 p.a.28

Romania

Teaching4

2 years

U.S. educational institution

No limit

Romania

Studying and training: Remittances or allowances

5 years

Any foreign resident

No limit

20(1)

Romania

Studying and training: Compensation during training

5 years

U.S. or any foreign resident

$2,000 p.a.

20(1)

Romania

Studying and training: Compensation while gaining experience2

1 year

Romanian resident

$5,000.

20(2)

Romania

Studying and training: Compensation while under U.S. government program

1 year

U.S. government or its contractor

$10,000

20(3)

Russia

Scholarship or fellowship grant4,15,41

5 years31

Any U.S. or foreign resident5

No limit

Russia

Independent personal services 7

183 days

Any contractor

No limit

Russia

Dependent personal services8,17,32,58

183 days

Any foreign resident

No limit

Russia

Studying and training:4 Remittances or allowances

5 years 31

Any foreign resident

No limit

Slovak Republic

Scholarship or fellowship grant4,15

5 years

Any U.S. or foreign resident5

No limit

21(1)

Slovak Republic

Independent personal services7

183 days

Any contractor

No limit

Slovak Republic

Dependent personal services12,17,57

183 days

Any foreign resident

No limit

Slovak Republic

Public entertainment

No limit

Any U.S. or foreign resident

$20,000 p.a.30

Slovak Republic

Teaching4,35

2 years

Any U.S. educational or research institution

No limit

21(5)

Slovak Republic

Studying and training:4 Remittances or allowances

5 years

Any foreign resident

No limit

21(1)

Slovak Republic

Studying and training:4 Compensation during training

5 years

Any U.S. or any foreign resident

$5,000 p.a.

21(1)

Slovak Republic

Studying and training:4 Compensation while gaining experience2

12 consecutive months

Slovak resident

$8,000

21(2)

Slovak Republic

Studying and training:4 Compensation while under U.S. government program

1 year

U.S. government

$10,000

21(3)

Slovenia

Scholarship or fellowship grant4

5 years10

Any U.S. or foreign resident5

No limit

20(1)

Slovenia

Independent personal services7

No limit

Any contractor

No limit

Slovenia

Dependent personal services12,17,58

183 days

Any foreign resident

No limit

Slovenia

Public entertainment

No limit

Any U.S. or foreign resident

$15,000 p.a.30

Slovenia

Teaching or research4

2 years40

Any U.S. or foreign resident

No limit

20(3)

Slovenia

Studying and training:4 Remittances or allowances

5 years10

Any foreign resident

No limit

20(1)

Slovenia

Studying and training:4Compensation during training

12 months

Slovenian resident

$8,000

20(2)

Slovenia

Studying and training:4 Compensation during training

5 years10

Other foreign or U.S. resident

$5,000 p.a.

20(1)

Slovenia

Studying and training:4 Compensation while gaining experience2

12 months

Slovenian resident

$8,000

20(2)

South Africa

Independent personal services 7

183 days

Any contractor

No limit

South Africa

Dependent personal services12,17,58

183 days

Any foreign resident

No limit

South Africa

Public entertainment

No limit

Any U.S. or foreign resident

$7,500 p.a.30

South Africa

Studying and training: Remittances or allowances11

1 year 45

Any foreign resident

No limit

Spain

Scholarship or fellowship grant4,15

5 years

Any U.S. or foreign resident5

No limit

22(1)

Spain

Independent personal services7

No limit

Any contractor

No limit

Spain

Dependent personal services12,17,57

183 days

Any foreign resident

No limit

Spain

Public entertainment

No limit

Any U.S. or foreign resident

$10,000 p.a.30

Spain

Studying and training: 4 Remittances or allowances

5 years

Any foreign resident

No limit

22(1)

Spain

Studying and training:4 Compensation during training

5 years

Any U.S. or foreign resident

$5,000 p.a.

22(1)

Spain

Studying and training:4 Compensation while gaining experience 2

12 consecutive months

Spanish resident

$8,000

22(2)

Sri Lanka

Independent personal services7,12

183 days

Any contractor

No limit.

Sri Lanka

Dependent personal services12,17,57

183 days

Any foreign resident

No limit

Sri Lanka

Public entertainment

No limit

Any U.S. or foreign resident

$6,000 p.a.30

Sri Lanka

Studying and training: Remittances or allowances11

No limit

Any foreign resident

No limit

21(1)

Sri Lanka

Studying and training: Compensation while gaining experience2

1 year

Sri Lankan resident19

$6,000

21(2)

Sweden

Independent personal services7

No limit

Any contractor

No limit.

Sweden

Dependent personal services12,17,57

183 days

Any foreign resident

No limit

Sweden

Public entertainment

No limit

Any U.S. or foreign resident

$6,00025

Sweden

Studying and training: Remittances or allowances11

No limit

Any foreign resident

No limit

Switzerland

Independent personal services7

No limit

Any contractor

No limit

Switzerland

Dependent personal services8,17,57

183 days

Any foreign resident

No limit

Switzerland

Public entertainment

No limit

Any U.S. or foreign resident

$10,000 p.a.25

Switzerland

Studying and training: Remittances or allowances11

No limit

Any foreign resident

No limit

Tajikistan - see C.I.S

Thailand

Scholarship or fellowship grant

5 years

Any U.S. or foreign resident5

No limit

22(1)

Thailand

Independent personal services7

89 days

Any U.S. resident or permanent establishment

$10,000 p.a.

Thailand

Independent personal services7

89 days

Any foreign contractor

No limit49

Thailand

Dependent personal services12,17,47,57

183 days

Any foreign resident

No limit

Thailand

Public entertainment

No limit

Any U.S. or foreign resident

$100 per day or $3,000 p.a.48

Thailand

Teaching or research4,38

2 years

Any U.S. or foreign resident

No limit

Thailand

Studying and training: Remittances or allowances

5 years

Any foreign resident

No limit

22(1)

Thailand

Studying and training: Compensation during training

5 years

Any U.S. or foreign resident

$3,000 p.a.

22(1)

Thailand

Studying and training: Compensation while gaining experience

12 consecutive months

Thai resident2

$7,500 p.a.

22(2)

Thailand

Studying and training: Compensation under U.S. government program

1 year

U.S. government

$10,000

22(3)

Trinidad and Tobago

Scholarship or fellowship grant15

5 years

Any U.S. or foreign resident5

No limit

19(1)

Trinidad and Tobago

Independent personal services14

183 days

Any foreign resident contractor

No limit

Trinidad and Tobago

Independent personal services14

183 days

Any U.S. contractor

$3,0006

Trinidad and Tobago

Dependent personal services8,14

183 days

Any foreign resident

No limit

Trinidad and Tobago

Dependent personal services8,14

183 days

Any U.S. resident

$3,0006

Trinidad and Tobago

Public Entertainment

No limit

Any U.S. or foreign resident

$100/day

17(4)

Trinidad and Tobago

Teaching4

2 years

U.S. educational institution or U.S. government

No limit

Trinidad and Tobago

Studying and training: Remittances or allowances

5 years

Any foreign resident

No limit

19(1)

Trinidad and Tobago

Studying and training: Compensation during study or research

5 years

U.S. or any foreign resident

$2,000 p.a.6

19(1)

Trinidad and Tobago

Studying and training: Compensation during professional training

5 years

U.S. or any foreign resident

$5,000 p.a.6

19(1)

Trinidad and Tobago

Studying and training: Compensation while gaining experience

1 year

Trinidad-Tobago resident 2

$5,0006

19(2)

Trinidad and Tobago

Studying and training: Compensation under U.S. government program

1 year

U.S. government or its contractor

$10,0006

19(3)

Tunisia

Scholarship and fellowship grant11,15

5 years

Any U.S. or foreign resident5

No limit

Tunisia

Independent personal services7

183 days

Any resident contractor

$7,500 p.a.

Tunisia

Dependent personal services8,17,57

183 days

Any foreign resident

No limit

Tunisia

Public entertainment

No limit

Any U.S. or foreign resident

$7,500 p.a.25

Tunisia

Studying and training: 11 Remittances or allowances

5 years

Any foreign resident

No limit

Tunisia

Studying and training:11 Compensation during training

5 years

Any U.S. or foreign resident

$4,000 p.a.

Turkey

Independent personal services7

183 days

Any contractor

No limit

Turkey

Dependent personal services12,17,57

183 days

Any foreign resident

No limit

Turkey

Public entertainment

No limit

Any U.S. or foreign resident

$3,000 p.a.48

Turkey

Teaching or research

2 years

Any foreign resident

No limit

20(2)

Turkey

Studying and training: Remittances or allowances11

No limit

Any foreign resident

No limit

20(1)

Turkmenistan - see C.I.S

Ukraine

Scholarship or fellowship grant41

5 years 31

Any U.S. or foreign resident 5

No limit

Ukraine

Independent personal services3,7

No limit

Any contractor

No limit

Ukraine

Dependent personal services3,17,47,58

183 days

Any foreign resident

No limit

Ukraine

Studying and training: Remittances or allowances 4

5 years31

Any foreign resident

No limit

United Kingdom

Independent personal services53

United Kingdom

Dependent personal services12,17,58

183 days

Any foreign resident

No limit

United Kingdom

Public entertainment

No limit

Any U.S. or foreign resident

$20,000 p.a. 25

United Kingdom

Teaching or research4

2 years

Any U.S. educational institution

No limit

20A

United Kingdom

Studying and training: Remittances or allowances11

1 year45

Any foreign resident

No limit

Uzbekistan - see C.I.S

Venezuela

Scholarship or fellowship grant4

5 years10

Any U.S. or foreign resident 5

No limit

21(1)

Venezuela

Independent personal services7,12

No limit

Any contractor

No limit

Venezuela

Dependent personal services12,17,58

183 days

Any foreign resident

No limit

Venezuela

Public entertainment

No limit

Any U.S. or foreign resident

$6,000 p.a.30

Venezuela

Teaching4

2 years40

Any U.S. or foreign resident

No limit

21(3)

Venezuela

Studying and training:4 Remittances or allowances

5 years10

Any foreign resident

No limit

21(1)

Venezuela

Studying and training:4 Compensation during training

12 months

Venezuelan resident

$8,000

21(2)

Venezuela

Studying and training:4 Compensation during training

5 years10

Other foreign or U.S. resident

$5,000 p.a.

21(1)

Venezuela

Studying and training:4 Compensation while gaining experience

12 months

Venezuelan resident2

$8,000

21(2)

Exceptions & meaning →

Note:¶

Those countries to which the U.S. - U.S.S.R income tax treaty still applies: Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Uzbekistan.

Footnotes to Table 2. Compensation for Personal Services Performed in United States Exempt from U.S. Income Tax Under Income Tax Treaties

Refers to income code numbers under which the income is reported on Forms 1042-S. Personal services must be performed by a nonresident alien individual who is a resident of the specified treaty country.

Applies only if training or experience is received from a person other than alien's employer.

The exemption does not apply to income received for performing services in the United States as an entertainer or a sportsman. However, this income is exempt for U.S. income tax if the visit is (a) substantially supported by public funds of Ukraine, its political subdivisions, or local authorities, or (b) made under a specific arrangement agreed to by the governments of the treaty countries.

Does not apply to compensation for research work primarily for private benefit.

Grant must be from a nonprofit organization. In many cases, the exemption also applies to amounts from either the U.S. or foreign government. For Indonesia and the Netherlands, the exemption also applies if the amount is awarded under a technical assistance program entered into by the United States or the foreign government, or its political subdivisions or local authorities.

Reimbursed expenses are not taken into account in figuring any maximum compensation to which the exemption applies. For Japan and Trinidad and Tobago, only reimbursed travel expenses are disregarded in figuring the maximum compensation.

Exemption does not apply to the extent income is attributable to the recipient's fixed U.S. base. For residents of Korea and Norway, the fixed base must be maintained for more than 182 days (for Norway, 30 days in the case of the exploration or exploitation of the seabed and sub-soil and their natural resources); for residents of Morocco, the fixed base must be maintained for more than 89 days.

Does not apply to fees paid to a director of a U.S. corporation.

Does not apply to compensation for research work for other than the U.S. educational institution (or, for Italy, a medical facility that is primarily publicly funded) involved.

Applies to any additional period that a full-time student needs to complete the educational requirements as a candidate for a postgraduate or professional degree from a recognized educational institution.

Applies only to full-time student or trainee.

Fees paid to a resident of the treaty country for services performed in the United States as a director of a U.S. corporation are subject to U.S. tax.

Exemption does not apply if, during the immediately preceding period, such individual claimed the benefits of Article 23(1).

Does not apply to compensation paid to public entertainers that is more than $100 a day.

Does not apply to payments from the National Institutes of Health under its Visiting Associate Program and Visiting Scientist Program.

Exemption applies only if the compensation is subject to tax in the country of residence.

The exemption does not apply if the employee's compensation is borne by a permanent establishment (or in some cases a fixed base) that the employer has in the United States.

The exemption also applies if the employer is a permanent establishment in the treaty country but is not a resident of the treaty country.

Applies also to a participant in a program sponsored by the U.S. government or an international organization.

The exemption is also extended to journalists and correspondents who are temporarily in the U.S. for periods not longer than 2 years and who receive compensation from abroad.

Also exempt are amounts of up to $10,000 received from U.S. sources to provide ordinary living expenses. For students, the amount will be less than $10,000, determined on a case by case basis.

Withholding may be required if the factors on which the treaty exemption is based may not be determinable until after the close of the tax year. Athletes and entertainers may be able to enter into a central withholding agreement with the IRS for reduced withholding provided certain requirements are met.

A student or trainee may choose to be treated as a U.S. resident for tax purposes. If the choice is made, it may not be changed without the consent of the U.S. competent authority.

Does not apply to amounts received in excess of reasonable fees payable to all directors of the company for attending meetings in the United States.

Exemption does not apply if gross receipts (including reimbursements) exceed this amount.

Exemption does not apply if net income exceeds this amount.

Exemption does not apply to payments borne by a permanent establishment in the United States or paid by a U.S. citizen or resident or the federal, state, or local government.

Exemption does not apply if compensation (or gross income for the Philippines and Romania) exceeds this amount.

The exemption applies only to income from activities performed under special cultural exchange programs agreed to by the U.S. and Chinese governments.

Exemption does not apply if gross receipts (or compensation for Portugal and Venezuela), including reimbursements, exceed this amount. Income is fully exempt if visit to the United States is substantially supported by public funds of the treaty country or its political subdivisions or local authorities.

The 5-year limit pertains only to training or research.

Compensation from employment directly connected with a place of business that is not a permanent establishment is exempt if the alien is present in the United States for a period not exceeding 12 consecutive months. Compensation for technical services directly connected with the application of a right or property giving rise to a royalty is exempt if the services are provided as part of a contract granting the use of the right or property.

Exemption does not apply if, during the immediately preceding period, the individual claimed the benefits of Article 21.

Exemption does not apply if, during the immediately preceding period, the individual claimed the benefits of Article 22.

Exemption does not apply if the individual either (a) claimed the benefit of Article 21(5) during a previous visit, or (b) during the immediately preceding period, claimed the benefit of Article 21(1), (2), or (3).

Exemption applies only to compensation for personal services performed in connection with, or incidental to, the individual's study, research, or training.

If the compensation exceeds $400 per day, the entertainer may be taxed on the full amount. If the individual receives a fixed amount for more than one performance, the amount is prorated over the number of days the individual performs the services (including rehearsals).

Exemption does not apply if, during the immediately preceding period, the individual claimed the benefits of Article 22(1).

Exemption does not apply if, during the immediately preceding period, the individual claimed the benefits of Article 24(1).

The combined benefit for teaching cannot exceed 5 years.

Exemption does not apply if, during the immediately preceding period, the individual claimed the benefits of Article 18(1).

Exemption does not apply if the individual either (a) previously claimed the benefit of this Article, or (b) during the immediately preceding period, claimed the benefit of Article 23. The benefits under Articles 22 and 23 cannot be claimed at the same time.

The combined period of benefits under Articles 20 and 21(1) cannot exceed 5 years.

Exemption does not apply if the individual previously claimed the benefit of this Article.

The time limit pertains only to an apprentice or business trainee.

Exemption does not apply if gross receipts exceed this amount.

Fees paid to a resident of the treaty country for services as a director of a U.S. corporation are subject to U.S. tax, unless the services are performed in the country of residence.

Exemption does not apply if gross receipts exceed this amount. Income is fully exempt if visit to the United States is substantially supported by public funds of the treaty country or its political subdivisions or local authorities.

A $10,000 limit applies if the expense is borne by a permanent establishment or a fixed base in the United States. Exemption does not apply if the recipient maintains a permanent establishment in the U.S. with which the income is effectively connected.

This provision does not apply if these activities are substantially supported by a nonprofit organization or by public funds of the treaty country or its political subdivisions or local authorities. For Indonesia and the Philippines, the competent authority of the sending state must certify that the visit qualifies.

Exemption does not apply if gross receipts, including reimbursements, exceed this amount during the year. Income is fully exempt if visit is wholly or mainly supported by public funds of one or both of the treaty countries or their political subdivisions or local authorities.

Exemption applies to a business apprentice (trainee) only for a period not exceeding 1 year (2 years for Belgium and Bulgaria) from the date of arrival in the United States.

Treated as business profits under Article 7 (VII) of the treaty.

Employment with a team which participates in a league with regularly scheduled games in both countries is covered under the provisions for dependent personal services.

Exemption does not apply if during the immediately preceding period, the individual claimed the benefit of Article 20(2), (3), or (4).

Labor or personal services performed in connection with the exploration or exploitation of the seabed and sub-soil and their natural resources is fully exempt for a period of 60 days in the tax year.

Remuneration for employment exercised aboard a ship or aircraft operated in international traffic by a resident of a contracting State may be taxed in that State. Canada may tax the income from employment if the income is derived by a resident of Canada and the ship or aircraft is operated by a resident of Canada. If operated by a Luxembourg resident and Luxembourg fails to tax the income, such income shall be taxed in the State of which the employee is a resident. The income may be taxed in Tunisia only if the ship or aircraft is operated by an enterprise that is managed and controlled in Tunisia.

Remuneration derived by a resident of a contracting State in respect of an employment as a member of the regular compliment of a ship or aircraft operated in international traffic may only be taxed in that State.

Income from personal services performed by a resident of one contracting State as an employee aboard ships or aircraft operated by a resident of the other contracting State in international traffic may be taxed by that other contracting State if the employee is a member of the regular compliment of the ship or aircraft.

The test does not apply if the entertainer is a resident of the one contracting State and is present in the other Contracting State pursuant to a specific arrangement agreed to by the contracting States under a Cultural Relations Agreement dated December 15, 1972.

The U.S.-U.S.S.R. Income Tax Treaty, signed June 20, 1973, applies to the countries of Armenia, Azerbaijan, Belarus. Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, and Uzbekistan.

Exceptions & meaning →

Exempt Countries for Government Service Employees¶

Mission

Article

Government salary exempt from US tax?

Armenia (USSR)

VI(1)(a)

Yes, if citizen of paying state

Australia

Yes, if citizen of paying state

Austria

Yes, if citizen of paying state

Azerbaijan (USSR)

VI(1)(a)

Yes, if citizen of paying state

Bangladesh

Yes

Barbados

Yes, if citizen of paying state

Belarus (USSR)

VI(1)(a)

Yes, if citizen of paying state

Belgium 1

Yes

Bulgaria

Yes

Canada

XIX

Yes, if citizen of paying state

China

Yes

Cyprus

Yes, if citizen of paying state

Czech Republic

Yes, if citizen of paying state

Denmark

Yes

Egypt

Yes, if citizen of paying state

Estonia

Yes

Finland

Yes

France

Yes

Georgia (USSR)

VI(1)(a)

Yes, if citizen of paying state

Germany

Yes

Greece

Yes

Hungary

Yes

Iceland

Yes

India

Yes

Indonesia

Yes

Ireland

Yes

Israel

Yes, if citizen of paying state

Italy

Yes

Jamaica

Yes

Japan

Yes

Kazakhstan

Yes

Korea

Yes, if citizen of paying state

Kyrgyzstan (USSR)

VI(1)(a)

Yes, if citizen of paying state

Latvia

Yes

Lithuania

Yes

Luxembourg

Yes

Malta

Yes

Mexico

Yes

Moldova (USSR)

VI(1)(a)

Yes, if citizen of paying state

Morocco

Yes, if citizen of paying state

Netherlands

Yes

New Zealand

Yes

Norway

Yes, if citizen of paying state

Pakistan

Yes, if citizen of paying state

Philippines

Yes, if citizen of paying state

Poland

Yes, if citizen of paying state

Portugal

Yes

Romania

Yes, if citizen of paying state

Russia

Yes

Slovak Republic

Yes, if citizen of paying state

Slovenia

Yes

South Africa

Yes

Spain

Yes

Sri Lanka

Yes, if citizen of paying state

Sweden

Yes

Switzerland

Yes

Tajikistan (USSR)

VI(1)(a)

Yes, if citizen of paying state

Thailand

Yes

Trinidad & Tobago

Yes, if citizen of paying state

Tunisia

Yes, if citizen of paying state

Turkey

Yes

Turkmenistan (USSR)

VI(1)(a)

Yes, if citizen of paying state

Ukraine

Yes

United Kingdom

Yes

Uzbekistan (USSR)

VI(1)(a)

Yes, if citizen of paying state

Venezuela

Yes

Exceptions & meaning →

Treaty Table 1, Tax Rates on Income Other than Personal Service Income Under Chapter 3,…¶

This table lists the income tax rates on income other than personal service income. The income code numbers shown in this table are the same as the income codes on TY 2020 Form 1042-S. See IRM 3.22.3.4 for cross reference of income codes in prior years. Use this table and the footnote references to verify tax treaty claims.

Table 1. Tax Rates on Income Other Than Personal Service Income Under Chapter 3, Internal Revenue Code, and Income Tax Treaties

Income Code

Name

Code

Interest Paid by U.S. Obligors - General bbb

Dividends Paid by U.S. Corporations - General a

Dividends Qualifying for Direct Dividend Ratea,b, aaa

Pensions and Annuities d

Royalties Industrial Equipment

Know-How/ Other Industrial Royalties

Royalties Patents

Royalties Film & TV

Royalties Copyrights

Armenia (see Note below)

0 n

Australia

10 g,jj,nn

15 mm

5 mm,oo

n/a u

Austria

0 g,jj, ss

15 w

5 w

n/au

0 ss

10 ss

0 ss

Azerbaijan (see Note below)

0 n

Bangladesh

10 g,bb,jj

15 mm

10 mm

0 f,q

n/au

Barbados

5rr, z

15 w, rr

5 w, rr

0 f

n/au,rr

5 rr

Belarus(see Note below)

0 n

Belgium

0 g,jj,ss

15 dd,mm

5 dd,mm,oo

0 f

n/au

0 ss

Bulgaria

5 g,dd,jj,z

10 dd,mm

5 dd,mm

0 f

n/au

Canada

0 g,jj

15 mm

5 mm

15ii

China, People's Rep. of

10z

0 t

Comm. Of Independent States (see Note below)

0 n

Cyprusbbb

10 z

0 f

n/au

Czech Republic

0 g

15 w

5 w

0 f

Denmark

0 g,jj

15 dd,mm

5 dd,mm,oo

30 c,t

n/au

Egypt

15z

0 f

n/au

30 u

n/a u

Estonia

10 g,jj,z

15 w

5 w

0 f

Finland

0 g,jj

15 dd,mm

5 dd,mm,oo

0 f

n/au

France

0 g,jj,ss

15 mm

5 mm,oo,ss

30 t

n/au

0 ss

Georgia (see Note below)

0 n

Germany

0 g,jj

15 dd,mm

5 dd,mm,oo

0 f

n/au

Greece

0 r

Hungary

0 t

n/au

Iceland

0 g,jj,ss

15 dd,mm

5 dd,mm,ss

n/a u

5 i,ss

0 ss

5 ss

0 ss

India

15 z

25 w

15 w

0 f,ii

10 x

15 x

Indonesia

10z

15 q

Irelandbbb

0 g,jj,ss

15 mm

5 mm,ss

0 f

n/a u

0 ss

Israelbbb

17 1/1z

25 w

12 1/1w

0 f

n/a u

15 u

Italy

10 g,h

15 mm

5 mm

0 f,ii

5tt

Jamaicabbb

12 1/1z

0 f,p

n/a u

Japanbbb

10 e,g,dd

10 dd,mm

5 dd,mm,oo

n/au

Kazakhstan

10 g, z

15 ff

5 ff

0 f

10 uu

Korea, South

12z

0 f

n/a u

Kyrgyzstan (see Note below)

0 n

Latvia

10 g,jj,z

15 w

5 w

0 f

Lithuania

10 g,z,jj

15 w

5 w

0 f

Luxembourg

0 g,jj

15 w

5 w

n/au

0 ss

Malta bbb

10 g,jj,ss,z

15 dd,mm

5 dd,mm,ss

0 f

n/au

10 ss

Mexico

15 g,dd,hh

10 dd,mm

5 dd,mm,oo

Moldova (see Note below)

0 n

Moroccobbb

15z

0 f

n/au

Netherlands

0 m,ss

15 dd,pp,

5 oo,pp

0 f,ii

n/au

0 ss

New Zealand

10 g,jj,z

15 mm

5 mm,oo

n/au

Norway

0 s

0 f

n/au

n/a u

Pakistan

0 j

n/au

n/a u

Philippines

15z

30 q

n/au

15 vv

Poland

n/au

Portugal

10 g,jj,z

15 w

5 w

0 f

Romania

10z

0 f

n/au

Russia

0 g

10 ff

5 ff

0 t

n/au

Slovak Republic

0 g

15 w

5 w

0 f

Slovenia

5 g,z,jj

15 mm

5 mm

0 f

n/au

South Africa

0 g,jj

15 w

5 w

15 l

n/au

Spain

10z

15 w

10 w

0 f

5 aa

Sri Lanka

10 g,jj,z

15 gg

0 t

5 y

Sweden

0 g,jj

15 dd,mm

5 dd,mm,oo

n/au

Switzerland

0 g,jj

15 w

5 w

n/a u

Tajikistan (see Note below)

0 n

Thailandbbb

15 g,z

15 w

10 w

0 f

Trinidad & Tobago

30z

0 f

n/au

n/a u

0 cc

Tunisia

15z

20 w

14 w

0 f

10xx

Turkey

15 g,z,jj

20 w

15 w

Turkmenistan (see Note below)

0 n

Ukraine

0 g

15 ff

5 ff

n/au

United Kingdombbb

0 g,jj

15 mm

5 mm,oo

0 f,ii

n/au

Uzbekistan (see Note below)

0 n

Venezuela

10 g,jj,z,ll

15 mm

5 mm

0 t

Other Countries

Exceptions & meaning →

Note:¶

Those countries to which the U.S. - U.S.S.R income tax treaty still applies: Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Uzbekistan.

Footnote

Footnotes to Table 1. Tax Rates on Income Other Than Personal Service Income Under Chapter 3, Internal Revenue Code, and Income Tax Treaties

No U.S. tax is imposed on a percentage of any dividend paid by a U.S. corporation in existence on January 1, 2011, that received at least 80% of its gross income from an active foreign business for the 3 year period before the dividend is declared. (See sections 871(i)(2)(B) and 881(d) of the Internal Revenue Code.)

The direct dividend rate generally applies to dividends paid by a subsidiary to a foreign parent corporation that owns the required percentage of the voting stock ownership, generally 10%. In some cases, the income of the subsidiary must meet certain requirements (e.g., a certain percentage of its total income must consist of income other than dividends and interest).

In Denmark, the rate on U.S. source pension distributions is 0% if, since before March 31, 2000, the recipient: (i) has been receiving U.S. source pension distributions, and (ii) was, and continues to be, a non-U.S. person and a resident of Denmark.

The rate applies to both periodic and lump-sum payments unless the treaty (or accompanying technical explanation to a treaty) provides for a different rate for lump-sum payments. See footnote ii below for more information about which treaties provide a different rate for lump-sum payments. In some cases, this rate does not apply to pensions paid by a State or political subdivision or local authority thereof in respect of government services, which may be addressed in a separate treaty article. See specific treaty for rules related to distributions from government pensions.

In Japan, interest is exempt if (a) paid to certain financial institutions; (b) paid on indebtedness from the sale on credit of equipment or merchandise; (c) paid to Japan or its political subdivision, its central bank, and certain other wholly-owned government entities; or (d) paid to a pension fund if not derived from the carrying on of a business by the pension fund.

Includes alimony.

Exemption or reduced rate does not apply to an excess inclusion for a residual interest in a real estate mortgage investment conduit (REMIC).

In Italy, interest paid or accrued on the sale of goods, merchandise, or services between enterprises is exempt. Interest paid or accrued on the sale on credit of industrial, commercial, or scientific property is exempt. In addition, interest paid to a qualified governmental entity that holds, directly or indirectly, less than 25 percent of the capital of the person paying the interest, or paid with respect to debt obligations guaranteed or insured by a qualified governmental entity of Italy or the U.S. and beneficially owned by a resident of Italy is exempt.

In Iceland, the rate is 5% for trademarks and any information concerning industrial, commercial, or scientific experience provided in connection with a rental or franchise agreement that includes rights to use a trademark.

In Pakistan, the exemption is not available when the distribution is from a fund under an employees' pension or annuity plan, if contributions to such plan are deductible under U.S. tax laws in determining taxable income of the employer.

[reserved]

For South Africa, the reduced rate applies to pension distributions if the distribution is not subject to a penalty for early withdrawal. Annuities are not taxable if purchased while the annuitant was not a resident of the United States.

[reserved]

The exemption applies only to interest on credits, loans, and other indebtedness connected with the financing of trade between the United States and the C.I.S. member. It does not include interest from the conduct of a general banking business.

[reserved]

For Jamaica, the exemption does not apply if the applicable past employment was performed in the United states while such person was a resident of the United States, or if the annuity was purchased in the United States while such person was a resident of the United States.

Annuities paid in return for other than the recipient's services are exempt. For Bangladesh, exemption does not apply to annuity received for services rendered.

Exemption does not apply to such interest paid by a U.S. corporation to a Greek corporation controlling, directly or indirectly, more than 50 percent of the entire voting power in the paying corporation.

In Norway, the rate is 0% so long as Norway continues to exempt from tax interest derived within Norway (not attributable to a permanent establishment in Norway) by persons not resident in Norway.

The provision does not apply to annuities. For Denmark, annuities are exempt from U.S. tax.

If enterprise earns income from leasing of equipment in the conduct of a trade or business, covered by Business Profits article (net tax). If passive income from the leasing of equipment, and not in Royalty article, covered by the Other Income article, if any. In Pakistan payment for TV broadcasting rights are covered by the Royalty article but not rental income from motion picture films.

In China, 10% rate of tax imposed on 70% of gross royalties for rentals of industrial, commercial, or scientific equipment.

The rate in column 6 applies to dividends paid by a regulated investment company (RIC) or a real estate investment trust (REIT). However, that rate applies to dividends paid by a REIT only if the beneficial owner of the dividends is an individual holding less than a 10% interest (25% in the case of Portugal, Spain, Thailand, and Tunisia) in the REIT.

In India, the rate also applies to fees for included services. See Article 12(4) of the U.S.-India treaty and the May 15, 1989 Memorandum of Understanding Concerning Fees for Included Services in Article 12.

In Sri Lanka, the rate is 5% for the rental of tangible personal property.

An exemption from tax or a reduced rate of tax may apply to interest that is paid to the government of a Contracting State or a political subdivision or local authority thereof. An exemption or reduced rate may also apply to certain other types of interest, including interest paid to certain banks or other financial institutions, interest derived on loans guaranteed or insured by the government of a Contracting State, and interest arising in connection with commercial credit for goods or services. Please refer to the interest article of the relevant treaty for specific information.

In Spain, the rate is 8% for copyrights of scientific work.

In Bangladesh, the rate is 5% for interest (a) beneficially owned by a bank or other financial institution (including an insurance company) or (b) paid due to a sale on credit of any industrial, commercial, or scientific equipment, or of any merchandise to an enterprise. The rate is 0% for interest that is (a) derived by the government of Bangladesh, or an instrumentality thereof, or (b) on a debt obligation guaranteed or insured by Bangladesh or an instrumentality thereof.

In Trinidad & Tobago, the rate is 15% for copyrights of scientific work.

Amounts paid to certain pension funds that are not derived from the carrying on of a business, directly or indirectly, by the fund are exempt. This includes dividends paid by a REIT only if the conditions in footnote mm are met. For Sweden, to be entitled to the exemption, the pension fund must not sell or make a contract to sell the holding from which the dividend is derived within 2 months of the date the pension fund acquired the holding. The United States has competent authority arrangements (MAP) with some treaty jurisdictions (e.g. Netherlands and Switzerland) that describe which pension funds are eligible for the exemption. See the Competent Authority Arrangements page on IRS.gov.

[reserved]

The rate in column 6 applies to dividends paid by a regulated investment company (RIC). Dividends paid by a real estate investment trust (REIT) are subject to a 30% rate.

In Sri Lanka, the rate applies to dividends paid by a real estate investment trust (REIT) only if the beneficial owner of the dividends is (a) an individual holding less than a 10% interest in the REIT, (b) a person holding not more than 5% of any class of the REIT's stock and the dividends are paid on stock that is publicly traded, or (c) a person holding not more than a 10% interest in the REIT and the REIT is diversified.

The rate is 4.9% for interest derived from (1) loans granted by banks and insurance companies and (2) bonds or securities that are regularly and substantially traded on a recognized securities market. The rate is 10% for interest not described in the preceding sentence and paid (i) by banks or (ii) by the buyer of machinery and equipment to the seller due to a sale on credit. There is a full exemption if the beneficial owner is Mexico, a political subdivision or local authority; is a trust, company, or other organization constituted and operated exclusively to administer or provide benefits under one or more plans established to provide pension, retirement or other employee benefits and its income is generally exempt from tax in Mexico, or if the interest arises in the United States and is paid in respect of a loan for a period of not less than three years made, guaranteed, or insured, or a credit for such period extended, guaranteed, or insured by the Banco Nacional de Comercio Exterior, S.N.C. or the Banco National Financiera, S.N.C.

In Canada, the 15% rate does not apply to a lump-sum payment. In Italy, the exemption does not apply to lump-sum or severance payments received if the applicable past employment was performed in the United States while such person was a resident of the United States. In the Netherlands, the exemption does not apply if (1) the recipient was a U.S. resident during the 5-year period before the date of payment, (2) the amount was paid for employment performed in the United States, and (3) the amount is not a periodic payment, or is a lump-sum payment in lieu of a right to receive an annuity. In the United Kingdom, the exemption does not apply to a lump-sum distribution derived from a U.S. pension plan. In India, the exemption does not apply to a lump-sum payment.

The rate is 15% (10% for Bulgaria; 30% for Austria, Germany, and Switzerland) for contingent interest that does not qualify as portfolio interest. In general, contingent interest is interest that is determined with reference to (a) receipts, sales, income, profits or other cash flow of the debtor or a related person, (b) any change in the value of any property of the debtor or a related person, or (c) any dividend, partnership distribution, or similar payment made by the debtor or related person. For Sweden and Germany, contingent interest is covered by the dividends article of the treaty.

[reserved]

In Venezuela, the rate is 4.95% if the interest is beneficially owned by a financial institution (including an insurance company).

The rate in column 6 applies to dividends paid by a regulated investment company (RIC) or real estate investment trust (REIT). However, that rate applies to dividends paid by a REIT only if the beneficial owner of the dividends is (a) an individual (or pension fund, in some cases) holding not more than a 10% interest in the REIT, (b) a person holding not more than 5% of any class of the REIT's stock and the dividends are paid on stock that is publicly traded, or (c) a person holding not more than a 10% interest in the REIT and the REIT is diversified.

Interest received by a financial institution is exempt, as is interest received by the government of Australia, a political or administrative sub- division or a local authority thereof, or by any other body exercising governmental functions in Australia, or by a bank performing central banking functions in Australia.

Dividends received from an 80% owned corporate subsidiary are exempt if certain ownership period and limitation on benefits conditions are met by the recipient. For Japan, greater than 50% ownership is necessary. See specific treaty article to determine other conditions.

The rate in column 6 applies to dividends paid by a regulated investment company (RIC) or real estate investment trust (REIT). However, that rate applies to dividends paid by a REIT only if the beneficial owner of the dividends is (a) an individual holding not more than a 25% interest in the REIT, (b) a person holding not more than 5% of any class of the REIT's stock and the dividends are paid on stock that is publicly traded, or (c) a person holding not more than a 10% interest in the REIT and the REIT is diversified, or (d) a Dutch belegginginstelling.

Applies to 85% of the social security payments received from the U.S. Government. The effective rate on the total social security payments received is 85% of the rate shown in the table. These rates also apply to the social security equivalent portion of tier 1 railroad retirement benefits received from the U.S. The remainder of tier 1, all of tier 2, dual, and supplemental railroad retirement benefits are taxed as shown in the “Pensions and Annuities” column.

In Barbados, no benefits for interest, dividends or royalties are permitted if recipient is subject to a special tax regime or administrative practice that provides for an effective tax rate substantially lower than the generally applicable tax rate for companies or individuals as appropriate.

15% rate applies if income is attributable to a permanent establishment which that enterprise has in a third state, if the tax that is actually paid with respect to such income in the third state is less than 60 percent of the tax that would have been payable in the treaty country if the income were earned in by the enterprise and were not attributable to the permanent establishment in the third state, unless derived in the active conduct of a trade or business in that third state.

Unless the treaty, technical explanation to the treaty, or any relevant competent authority arrangement provides otherwise, the copyright tax rate provided in column 12 applies to royalties for computer software. In Italy, for example, royalties for computer software are subject to the same rate as payments for the right to use industrial equipment.

In Kazakhstan, the beneficial owner may elect to compute tax on a net basis as if attributable to a U.S. permanent establishment.

Note that Philippine’s tax rate differs from the U.S. tax rate.

In Tunisia, payments for the use of ships, aircraft, or containers used in international traffic are not included.

In general, royalties include gains derived from the alienation of property covered by the Royalty article to the extent such gains are contingent on the productivity, use, or disposition of such property.

[reserved]

aaa

The branch profits tax applies only to the dividend equivalent amount of a foreign corporation that has business profits attributable to a permanent establishment in the United States or is otherwise taxed on a net basis under a treaty (e.g., income from real property in the United States). The rate is generally the same rate as the direct dividend rate (including an exemption if direct dividends qualify for an exemption), provided the treaty has entered into effect after January 1, 1987. If a new treaty has not entered into force, then the rate is 0 (Cyprus, China, Egypt, Greece, Hungary, Jamaica, Korea, Morocco, Norway, Pakistan, Poland, Romania, and the Philippines), except for Trinidad and Tobago— 10%, and countries to which the U.S.S.R. treaty applies—30% (no direct dividend rate).

bbb

If an individual is a resident but not a domiciliary of the country, and income or gain subject to tax by reference to the amount remitted to or received in that country and not by reference to the full amount thereof, then the exemption or reduced rates for items provided for in this table is only available for the amount remitted to that country.

ccc

Branch interest (section 884(f)(1)(A)) paid by the U.S. trade or business of a foreign corporation is treated as if it were paid by a domestic corporation to the actual lender and is subject to chapter 3 withholding (income code 4). For treaty purposes, interest borne by a permanent establishment and paid to a resident of a treaty jurisdiction is taxable at the rate applicable to that payment as if had it been paid by a U.S. resident to such person. Alternatively, if a treaty specifically prevents imposition of tax on U.S. source interest paid by a foreign corporation to such resident, then the rate is 0. The tax rate on excess interest is the same as the general interest rate, but excess interest is a deemed payment by a domestic corporation to its foreign parent at the end of the year and is not a withholdable amount.

Exceptions & meaning →

Country and Post of Duty (POD) Codes¶

Foreign Country Name

Post of Duty Code (POD)

Afghanistan

Aland Islands

Albania

Algeria

Andorra

Angola

Anguilla

Antarctic Lands

Antarctica

Antigua

Antigua and Barbuda

Argentina

Armenia

Aruba

Ashmore Island

Ashmore and Cartier Islands

Australia

Austria

Azerbaijan

Bahamas

Bahrain

Baker Island

Balearic Islands

Bangladesh

Barbados

Barbuda

Bassas da India

Belarus

Belgium

Belize

Benin

Bermuda

Bhutan

Bolivia

Bonaire, Sint Eustatius and Saba

Bosnia-Herzegovina

Botswana

Bouvet Island

Brazil

British Indian Ocean Territory

British Virgin Islands

Brunei

Bulgaria

Burkina Faso

Burma/Myanmar

Burundi

Caicos Islands

Cambodia

Cameroon

Canada

Cape Verde

Cartier Island

Cayman Islands

Central African Republic

Chad

Chile

China

Christmas Island

Clipperton Islands

Cocos Island

Columbia

Comoros

Congo, Republic of (Brazzaville)

Congo, Democratic Republic of (Kinshasa)

Cook Islands

Coral Sea Islands Territory

Costa Rica

Cote d'Ivoire (Ivory Coast)

Croatia

Cuba

Curacao

Cyprus

Czech Republic

Dem. People's Rep. of Korea (North)

Dem. Rep. of Congo (Kinshasa)

Denmark

Djibouti

Dominica

Dominican Republic

East Timor

Ecuador

Egypt

El Salvador

Eleuthera Island

Equatorial Guinea

Eritrea

Estonia

Ethiopia

Europa Island

Falkland Islands

Faroe Islands

Fiji

Finland

France

French Guiana

French Polynesia

French Southern and Antarctic Lands

Futuna

Gabon

Gambia

Georgia

Germany

Ghana

Gibraltar

Glorioso Islands

Great Britain

Greece

Greenland

Grenada

Grenadines

Guatemala

Guernsey

Guinea

Guinea-Bissau

Guyana

Haiti

Heard Island and McDonald Island

Holy See

Honduras

Hong Kong

Howland Island

Hungary

Iceland

India

Indonesia

Iran

Iraq

Ireland

Isle of Man

Israel

Italy

Jamaica

Jan Mayen

Japan

Jersey

Johnston Atoll

Jordan

Juan de Nova Island

Kazakhstan

Kenya

Kingman Reef

Kiribati

Korea (North)

Korea (South)

Kosovo

Kurile Islands

Kuwait

Kyrgyzstan

Laos

Latvia

Lebanon

Lesotho

Liberia

Libya

Liechtenstein

Lithuania

Luxembourg

Macau

Macedonia

Madagascar

Malawi

Malaysia

Maldives

Mali

Malta

Martinique

Marshall Islands

Mauritania

Mauritius

Mayotte

McDonald Island

Mexico

Micronesia

Midway Islands

Miquelon

Moldova

Monaco

Mongolia

Montenegro

Montserrat

Morocco

Mozambique

Myanmar/Burma

Namibia

Nauru

Nepal

Netherlands

Nevis

New Caledonia

New Zealand

Nicaragua

Niger

Nigeria

Niue

Norfolk Island

North Korea

Norway

Oman

Other (country not identified elsewhere)

Pakistan

Palmyra Atoll

Panama

Papua New Guinea

Paracel Islands

Paraguay

Peru

Philippines

Pitcairn Islands

Poland

Portugal

Principe

Qatar

Redonda

Republic of Korea (South)

Republic of Singapore

Reunion

Romania

Russia

Rwanda

Ryukyu Islands

Saint Barthelemy

Saint Martin

Samoa

San Marino

Sao Tome and Principe

Sarawak

Saudi Arabia

Senegal

Serbia

Seychelles

Sierra Leone

Singapore

Sint Maarten

Slovakia

Slovenia

Solomon Islands

Somalia

South Africa

South Georgia Island

South Korea

South Sandwich Island

South Sudan

Spain

Spratly Islands

Sri Lanka

St. Helena

St. Kitts and Nevis

St. Lucia

St. Miquelon

St. Pierre

St. Pierre and Miquelon

St. Vincent and Grenadines

Sudan

Suriname

Svalbard

Swaziland

Sweden

Switzerland

Syria

Taiwan

Tajikistan

Tanzania

Thailand

The Bahamas

The Gambia

The Netherlands

Timor-Leste

Togo

Tokelau

Tonga

Tortola

Trinidad and Tobago

Tromelin Island

Tunisia

Turkey

Turkmenistan

Turks and Caicos Islands

Tuvalu

Uganda

Ukraine

United Arab Emirates

United Kingdom (including England, Northern Ireland, Scotland and Wales)

Uruguay

Uzbekistan

Vanuatu

Vatican City

Venezuela

Vietnam

Wake Island

Wallis and Futuna

Windward Island

Yemen

Zambia

Zimbabwe

Other (country not identified elsewhere)

Exceptions & meaning →

U.S. Territories - Zip Codes¶

This table lists the zip codes of cities in U.S. territories. Although the Federated States of Micronesia, the Marshall Islands, and Palau are not U.S. territories, they are listed because they use the same addressing methods as U.S. states/territories.

Federated States of Micronesia (FM) City

ZIP Code

Chuuk

96942

Kosrae

96944

Pohnpei

96941

Yap

96943

Marshall Islands (MH) City

ZIP Code

Ebeye

96970

Majuro

96960

Palau (PW) City

ZIP Code

Koror

96940

Palau

96940

the Commonwealth of the Northern Mariana Islands (MP) City

ZIP Code

Capitol Hill

96950

Rota

96951

Saipan

96950

Tinian

96952

U.S. Virgin Islands (VI) City

ZIP Code

Charlotte Amalie

00802

Christiansted

00820

Cruz Bay

00830

Downtown

00840

Frederiksted

00840

Kingshill

00850

Saint Croix

00820

Saint John

00830

Saint Thomas

00805

Sunny Isle

00850

Veterans Annex

00820

Guam (GU) City

ZIP Code

Agana

96910

Inarajan

96917

Merizo

96916

Tamuning

96931

Umatac

96915

Yona

96915

Puerto Rico (PR) City

ZIP Code

Adjuntas

00601

Aquada

00602

Aquadilla

00603

Agnes Buenas

00703

Aguirre

00704

Aibonito

00705

Anasco

00610

Angeles

00611

Arecibo

00612

Arroyo

00714

Bajadero

00616

Barceloneta

00617

Barraquitas

00794

Barrio Obrero Station

00935

Bayamon

00956

Boqueron

00622

Cabo Rojo

00623

Caguas

00725

Camuy

00627

Canovanas

00729

Caparra Heights

00920

Carolina

00982

Catano

00962

Cayey

00736

Ceiba

00735

Cerro Gordon

00754

Ciales

00638

Cidra

00739

Coamo

00769

Comerio

00782

Condado

00907

Corozal

00783

Coto Laurel

00780

Culebra

00775

Dorado

00646

Ensenada

00647

Esperanza

00765

Fajardo

00738

Fernandez Juncos

00936

Florida

00650

Fort Buchanan

00934

Garrachales

00652

Guanica

00653

Guayama

00784

Guayanilla

00656

Guaynabo

00965

Gurabo

00778

Hatillo

00659

Hato Rey

00936

Harmingueros

00660

Humacao

00791

Isabela

00662

Jayuya

00664

Juana Diaz

00795

Juncos

00777

La Cumbre

00926

Lajas

00667

Laplata

00786

Lares

00669

Las Marias

00670

Las Piedras

00771

Levittown

00949

Loiza

00772

Loiza Street Station

00936

Loquillo

00773

Manati

00674

Maricao

00606

Maunabo

00707

Mayaquez

00680

Mercedita

00715

Minillas Center

00936

Moca

00676

Morovis

00687

Naguabo

00718

Narajito

00719

Orocovis

00720

Palmer

00721

Patillas

00723

Penuelas

00624

Ponce

00731

Puerta de Tierra

00936

Puerta Real

00740

Punta Santiago

00741

Quebradillas

00678

Ramey

00603

Rincon

00677

Rio Blanco

00744

Rio Grande

00721

Rio Piedras

00927

Rosario

00636

Sabana Grande

00637

Sabana Hoyos

00688

Sabana Seca

00952

Saint Just

00978

Salinas

00751

San Antonio

00690

San Francisco

00927

San German

00683

San Juan

00936

San Lorenzo

00754

San Sebastian

00685

Santa Isabel

00757

Sanrurce

00936

Toa Alta

00953

Toa Boa

00949

Trujillo Alto

00976

University

00936

Utuado

00641

Vega Alta

00692

Vega Baja (box 1-9049)

00694

Vieques

00765

Villalba

00766

Yabucoa

00767

Yauco

00698

Exceptions & meaning →

Province, State and Territory Abbreviations¶

Australia State

Abbreviation

Australian Capital Territory

ACT

New South Wales

NSW

Northern Territory

Queensland

QLD

South Australia

Tasmania

TAS

Victoria

VIC

Western Australia

Brazil State

Abbreviation

Acre

Alagoas

Amapa

Amazonas

Bahia

Ceara

Distrito Federal

Esperito Santo

Goias

Maranhao

Mato Grosso

Mato Grosso do Sul

Minas Gerais

Parana

Paraiba

Para

Pernambuco

Piaui

Rio Grande do Norte

Rio Grande do Sul

Rio de Janeiro

Rondonia

Roraima

Santa Catarina

Sergipe

Sao Paulo

Tocantins

Canada Province/Territory

Abbreviation

Alberta

British Columbia

Manitoba

New Brunswick

Newfoundland and Labrador

Northwest Territories

Nova Scotia

Nunavut

Ontario

Prince Edward Island

Quebec

Saskatchewan

Yukon

Cuba Provincias

Abbreviation

Camaguey

Ciego de Avila

Cienfuegos

Ciudad di La Habana

Gramma (Bayamo)

Guantanamo

Holguin

La Habana

Matazas

Municipio Especial Isla de la Juventud

Pinar del Rio

Sancti Spiritus

Santiago de Cuba

(Victoria de) Las Tunas

Villa Clara

Italy Provincia

Abbreviation

Agrigento

Alessandria

Ancona

Aosta/Aoste

Arezzo

Ascoli Piceno

Asti

Bari

Belluna

Benevento

Bergamo

Biella

Bologna

Bolzano

Brescia

Brindisi

Cagliari

Caltanisetta

Campobasso

Caserta

Catania

Catanzaro

Chieti

Como

Cosenza

Cremona

Crotone

Cuneo

Enna

Ferrara

Firenze

Foggia

Forli

Frosinone

Genova

Gorizia

Grosseto

Imperia

Isernia

L'Aquila

La Spezia

Latina

Lecce

Livorno

Lodi

Lucca

Macerata

Mantova

Massa-Carrara

Matera

Messina

Milano

Modena

Napoli

Novara

Nuoro

Oristano

Padova

Palermo

Parma

Pavia

Perugia

Pesaro-Urbino

Pescara

Piacenza

Pisa

Pistoia

Pordenone

Potenza

Prato

Ragusa

Ravenna

Reggio de Calabria

Reggio nell'Emilia

Rieti

Rimini

Roma

Rovigo

Salerno

Sassari

Savona

Siena

Siracusa

Sondrio

Taranto

Teramo

Terni

Torino

Trapani

Trento

Treviso

Trieste

Udine

Varese

Venezia

Verbania

Vercelli

Verona

Vibo Valentia

Vicenza

Viterbo

Mexico State

Abbreviation

Aguascalientes

AGS

Baja California Norte

BCN

Baja California Sur

BCS

Campeche

CAM

Chiapas

CHIS

Chihuahua

CHIH

Coahuila

COAH

Colima

COL

Distrito Federal

Durango

DGO

Guanajuato

GTO

Guerrero

GRO

Hidalgo

HGO

Jalisco

JAL

Mexico

MEX

Michoacan

MICH

Morelos

MOR

Nayarit

NAY

Nuevo Leon

Oaxaca

OAX

Puebla

PUE

Queretaro

QRO

Quintana ROO

QROO

San Luis Potosi

SLP

Sinaloa

SIN

Sonora

SON

Tabasco

TAB

Tamaulipas

TAMPS

Tlaxcala

TLAX

Veracruz

VER

Yucatan

YUC

Zacatecas

ZAC

The Netherlands Province

Abbreviation

Drenthe

Flevoland

FLD

Friesland

Gelderland

GLD

Groningen

Limburg

North Brabant

North Holland

Overijssel

South Holland

Utrecht

Zeeland

SLD

Exceptions & meaning →

Types of Visas¶

Visa Type

Description

Diplomatic

Visitors

B-1 Business

B-2 Pleasure

Cannot work as employee for United States or foreign employer, but can be independent contractor

In Transit

Must depart from United States within 10 - 20 days from arrival

Ship crew members

E-1 Treaty Trader

E-2 Treaty Investor

Foreign Student

Already accepted by college or university for full course of study

Generally, unable to accept employment

Works for foreign government or International Organization

Exceptions & meaning →

Example:¶

United Nations

Temporary Worker

Visa petition, filed by United States employer must be approved

Exceptions & meaning →

Note:¶

Foreign agricultural workers temporarily admitted to the U.S. on H-2A visas are exempt from U.S. social security and Medicare taxes (SE tax). The wages earned are subject to U.S. income tax; however, H-2A workers are exempt from federal income tax withholding requirements.

Foreign media representative

Journalist

Exchange Visitor

(United States sponsored)

Foreign Professor or Teacher

Generally, length of stay in United States is 2 years

Fiancee of United States citizen

Marriage must take place within 90 days of arrival in United States

Intra company transferee

Student in vocational or other non-academic school

Treated as engaged in trade or business in the United States

NAFTA related allows temporary entry of Canadian and Mexican professional in qualifying occupations to work

Exceptions & meaning →

International Organizations Designated by the President through Executive Order¶

African Development Bank (Ex. Order No. 12403)

African Development Fund (Ex. Order No. 11997)

African Union (Ex. Order No. 13377)

African Union Mission (Ex. Order No. 13444)

Asian Development Bank (Ex. Order No. 11334)

Border Environment Cooperation Commission (Ex. Order No. 12904)

Caribbean Organization (Ex. Order No. 10983)

Commission for Environmental Cooperation (Ex. Order No. 12904)

Commission for Labor Cooperation (Ex. Order No. 12904)

Commission for the Study of Alternatives to the Panama Canal (Ex. Order No. 12567)

Customs Cooperation Council (Ex. Order No. 11596)

Council of Europe in Respect of the Group of States Against Corruption (Ex. Order No. 13240)

European Central Bank (Ex. Order No. 13307)

European Bank for Reconstruction and Development (Ex. Order No. 12766/ 13307)

European Space Agency (formerly European Space Research Organization (ESRO) (Ex. Order No. 11318/11351/11760/12766)

Food and Agriculture Organization (Ex. Order No. 9698)

Global Fund To Fight AIDS, Tuberculosis and Malaria (Ex. Order No. 13395)

Great Lakes Fishery Commission (Ex. Order No. 11059)

Hong Kong Economic and Trade Offices (Ex. Order No. 13052)

Inter-American Defense Board (Ex. Order No. 10228)

Inter-American Development Bank (Ex. Order No. 10873/11019)

Inter-American Institute of Agricultural Sciences (Ex. Order No. 9751)

Inter-American Investment Corporation (Ex. Order No. 12567)

Inter-American Statistical Institute (Ex. Order No. 9751)

Inter-American Tropical Tuna Commission (Ex. Order No. 11059)

Intergovernmental Maritime Consultative Organization (Ex. Order No. 10795)

International Atomic Energy Agency (Ex. Order No. 10727)

International Bank for Reconstruction and Development (Ex. Order No. 9751)

International Boundary and Water Commission, United States and Mexico (Ex. Order No. 12467)

International Centre for Settlement Disputes (Ex. Order No. 11966)

International Civil Aviation Organization (Ex. Order No. 9863)

International Coffee Organization (Ex. Order No. 11225)

International Committee of the Red Cross (Ex. Order No. 12643)

International Cotton Advisory Committee (Ex. Order No. 9911)

International Cotton Institute (Ex. Order No. 11283)

International Criminal Police Organization (INTERPOL) (limited privileges) (Ex. Order No. 12425/12971/13524)

International Development Association (Ex. Order No. 11966)

International Development Law Institute (Ex. Order No. 12842)

International Fertilizer Development Center (Ex. Order No. 11977)

International Finance Corporation (Ex. Order No. 10680)

International Food Policy Research Institute (limited privileges) (Ex. Order No. 12359)

International Fund for Agricultural Development (Ex. Order No. 12732)

International Hydrographic Bureau (Ex. Order No. 10769)

International Joint Commission -- United States and Canada (Ex. Order No. 9972)

International Labor Organization (Ex. Order No. 9698)

International Maritime Satellite Organization (Ex. Order No. 12238)

International Monetary Fund (Ex. Order No. 9751)

International Pacific Halibut Commission (Ex. Order No. 11059)

International Secretariat for Volunteer Service (Ex. Order No. 11363)

International Telecommunication Union (Ex. Order No. 9863)

International Telecommunications Satellite Organization (INTELSAT) (Ex. Order No. 11718/11966)

International Union for Conservation of Nature and Natural Resources (Ex. Order No. 12986)

International Wheat Advisory Committee (International Wheat Council) (Ex. Order No. 9823)

Interparliamentary Union (Ex. Order No. 13097)

ITER International Fusion Energy Organization (Ex. Order No. 13451)

Israel-United States Binational Industrial Research and Development Foundation (Ex. Order No. 12956)

Korean Peninsula Energy Development Organization (Ex. Order No. 12997)

Multinational Force and Observers (Ex. Order No. 12359)

Multilateral Investment Guarantee Agency (Ex. Order No. 12647)

North American Development Bank (Ex. Order No. 12904)

North Pacific Anadromous Fish Commission (Ex. Order No. 12895)

North Pacific Marine Science Organization (Ex. Order No. 12894)

Office of the High Representative in Bosnia and Herzegovina and the International Civilian Office in Kosovo (Ex. Order No. 13568)

Organization for European Economic Cooperation (now known as the Organization for Economic Cooperation and Development) (Ex. Order No. 10133)

Organization for the Prohibition of Chemical Weapons (Ex. Order No. 13049)

Organization of American States (includes Pan American Union) (Ex. Order No. 10533)

Organization of Eastern Caribbean States (Ex. Order No. 12669)

Pacific Salmon Commission (Ex. Order No. 12567)

Pan American Health Organization (includes Pan American Sanitary Bureau) (Ex. Order No. 10864)

Preparatory Commission of the International Atomic Energy Agency (Ex. Order No. 10727)

Provisional Intergovernmental Committee for the Movement of Migrants from Europe (now known as the Intergovernmental Committee for European Migration) (Ex. Order No. 10335)

South Pacific Commission (Ex. Order No. 10086)

United International Bureau for the Protection of Intellectual Property (BIRPI) (Ex. Order No. 11484)

United Nations (Ex. Order No. 9698)

United Nations Educational, Scientific, and Cultural Organization (Ex. Order No. 9863)

United Nations Industrial Development Organization (Ex. Order No. 12628)

United States-Mexico Border Health Commission (Ex. Order No. 13367)

Universal Postal Union (Ex. Order No. 10727)

World Health Organization (Ex. Order No. 10025)

World Intellectual Property Organization (Ex. Order No. 11866)

World Meteorological Organization (Ex. Order No. 10676)

World Tourism Organization (Ex. Order No. 12508)

World Trade Organization (Ex. Order No. 13042)

Exceptions & meaning →

Taxpayer Notice Codes (TPNC)¶

TPNC

Literal

300

We didn’t allow your foreign earned income exclusion or income deduction, housing exclusion, or housing deduction. The required Form 2555 was either incomplete or not attached. We have changed your tax return accordingly. (Form 1040)

302

We changed the amount of tax shown on your return. If you claimed the foreign earned income exclusion, housing exclusion or housing deduction on Form 2555/Form 2555-EZ, you must figure your tax using the Foreign Earned Income Tax Worksheet found in the Form 1040 instructions. It appears your tax was not computed using this worksheet or was computed incorrectly. (Form 1040)

303

304

You can't exclude more than the allowable amount of foreign earned income on Form 2555/Form 2555-EZ. We have changed your tax return accordingly. (Form 1040)

305

You figured the amount on Form 2555/Form 2555-EZ incorrectly. We have changed your tax return accordingly. (Form 1040)

306

307

We didn’t allow the amount claimed for the Credit for the Elderly and Disabled from Schedule R. Nonresident aliens are not eligible for this credit. We have adjusted your return accordingly. (Form 1040-NR)

308

You transferred your foreign earned income exclusion, housing exclusion or housing deduction incorrectly from Form 2555/Form 2555-EZ to your Form 1040. We have changed your tax return accordingly. (Form 1040)

309

Your foreign Earned Income Exclusion, Form 2555/Form 2555-EZ was disallowed because you did not live in a foreign country or because you did not meet the Tax Home Test for either the Bona Fide resident or Physical Presence Test. We have changed your tax return accordingly. (Form 1040)

310

We didn’t allow your exclusion of foreign earned income because you are resident of a United States Territory. We have changed your tax return accordingly. (Form 1040)

311

312

You cannot compute foreign tax credit on income that is excluded on Form 2555/Form 2555-EZ. We have changed your tax return accordingly. (Form 1040)

313

We changed the tax amount on your Form 1040-NR because of an error in your calculation of tax on the hypothetical married filing jointly statement you attached to your return.

314

We have disallowed your foreign earned income exclusion, housing exclusion, and/or housing deduction claimed on your tax return. Travel to Cuba is restricted. You cannot use the time spent in Cuba or any income earned in these countries to qualify for the foreign earned income exclusion. (Form 1040)

315

We cannot allow a deduction for a U.S. government Cost of living allowance. We have adjusted your tax return accordingly.

316

Income exempt under a tax treaty cannot be claimed as a miscellaneous itemized deduction on Schedule A. We adjusted your return accordingly.

317

Credit for child and dependent care expenses

Child tax credit

Additional child tax credit

318

Credit for child and dependent care expenses

Child tax credit

Additional child tax credit

319

The Individual Taxpayer Identification Number (ITIN) for you and/or your spouse has expired. As a result, we disallowed the amount you claimed as refundable child tax credit or additional child tax credit on your return. (Form 1040-SS (sp))

320

321

Dual-status taxpayers cannot file a joint return. Based on the information on your return, you are making an election to be taxed as a resident alien for the entire tax year. We have changed your tax return accordingly. (Form 1040)

322

Credit for other dependents

Credit for child and dependent care expenses

323

Your individual taxpayer identification number (ITIN) has expired. As a result, we disallowed certain credits claimed on your return. This change may affect any of the following credits:

Nonrefundable child tax credit

Credit for other dependents

Refundable child tax credit

Additional child tax credit

324

As dual-status taxpayer, you aren't entitled to the standard deduction. We have changed your tax return accordingly. (Form 1040 and Form 1040-NR)

325

You did not combine the income from your Dual Statement to your dual-status return correctly. We have adjusted your return accordingly.

326

You transferred your tax due on income not effectively connected to a United States trade or business incorrectly from your Form 1040-NR, Schedule NEC, to your Form 1040-NR, page 2. We have changed your tax return accordingly. (Form 1040-NR)

327

We changed the amount claimed as Repayment of Advanced Credit on your tax return because there was an error in figuring the repayment. The error was in one of the following:

Advanced Child Tax Credit was not reconciled.

Advanced Child Tax Credit was reconciled incorrectly.

The amount was not transferred correctly to your return.

328

We didn't receive your answer to our request for the dates you were in the U.S. Therefore, we changed your Dual-status return using only Form 1040-NR. We have changed your tax return accordingly. (Form 1040-NR)

329

We changed the amount of total tax on line 6 of your Form 1040-SS because there was an error adding lines 3 through 5. (Form 1040-SS)

330

Dual-status taxpayers cannot file Married Filing Jointly or Head of Household. Based on information on your return, we recomputed your taxes using either Single tax rates or Married Filing Separate tax rates. As a dual-status taxpayer, you can claim your own exemption. The amount you claim for your spouse and dependents is limited to your taxable income for the part of the year that you were a resident alien. We adjusted your return accordingly.

331

We changed the amount claimed as excess social security tax withheld or tier 1 RRTA withheld on page 1 of your tax return due to a computation error. (Form 1040-SS)

332

We didn't allow the amount claimed as additional child tax credit because Form(s) 499R-2, W-2PR or other supporting documents were not attached to your tax return. (Form 1040-SS)

333

We changed the amount claimed as child tax credit and credit for other dependents on your tax return. Credit for other dependents is not allowed for your spouse.

334

We adjusted your tax return allowing only the income and withholding for the taxpayer filing the tax return. The other person(s) must file their own tax return to report their income and withholding.

335

337

We didn’t allow all or part of your tax treaty exclusion on your return. You can only exclude income related to teaching, studying, or training. Article 19 of the China Treaty allows the exemption for only three years. We have adjusted your return accordingly.

339

We didn't allow part or all of your refundable child tax credit or additional child tax credit on page 1 of your tax return. One or more of your children exceeds the age limitation. (Form 1040-SS)

340

We changed the amount claimed as Refundable Child Tax Credit on your tax return because there was an error on Part II Form 1040PR. The error was in one of the following:

Computation of the credit on Refundable Child Tax Credit Worksheet.

Transfer of the amount to your tax return.

Advanced Child Tax Credit was not reconciled.

Advanced Child Tax Credit was reconciled incorrectly.

341

Your credit on Form 8689, "Allocation of Individual Income Tax to the U.S. Virgin Islands" can't be more than the tax due on your Form 1040. We changed your return accordingly. (Form 1040)

343

We can't allow your earned income credit because you excluded income under Section 931, Section 933, or Form 4563 or you did not maintain a home in the United States for 6 months or more. We have changed your tax return accordingly. (Form 1040)

344

We can't allow your foreign earned income exclusion. You and your spouse must each file separate Forms 2555/Form 2555-EZ to exclude your foreign earned income on your joint return. We have changed your tax return accordingly.

345

We didn't allow the amount claimed as excess social security tax or tier 1 RRTA withheld on your tax return because Form(s) W-2AS, W-2CM, W-2GU, W-2VI, or 499R-2/W-2PR was not attached to your tax return. (Form 1040-SS)

346

We changed the amount claimed as total payments on your tax return because there was an error in the addition of the payments section. (Form 1040-SS)

347

We changed the total income on your tax return to include your U.S. source income. U.S. source income reported to you on Form W-2 cannot be excluded under IRC 931, IRC 933, or Form 4563.

348

According to our records an installment payment is due for the First-Time Homebuyer Credit received with your 2008 tax return. You did not report the payment and did not include it in your total tax. We have calculated the required payment and added it to your tax return. (Form 1040-NR, Form 1040-SS)

350

352

We changed the amount reported as Additional Medicare Tax, Form 8959 on your tax return. There was an error computing Part I, line 7, Form 8959, Additional Medicare Tax. (Form 1040-NR/SS/PR)

353

We changed the amount reported as Additional Medicare Tax, Form 8959 on your tax return. There was an error computing Part II, line 13 Form 8959, Additional Medicare Tax. (Form 1040-NR/SS/PR)

354

We changed the amount reported as Additional Medicare Tax, Form 8959 on your tax return. There was an error computing Part III, line 17 Form 8959, Additional Medicare Tax. (Form 1040-NR/SS/PR)

355

We changed the amount reported as Additional Medicare Tax, Form 8959 on your tax return. There was an error computing Part V, line 24 Form 8959, Additional Medicare Tax. (Form 1040-NR/PR/SS)

356

We changed the amount of tax reported on your tax return. There was an error in the transfer of the amount from line 18 of your Form 8959, Additional Medicare Tax, to the appropriate line on your tax return.(Form 1040-NR/SS/PR)

PR verbiage - Cambiamos la cantidad de la contribución en la línea 5 de su Formulario 1040-SS (sp). Hubo un error al trasferir la cantidad de la línea 18 de su Formulario 8959, Additional Medicare Tax (Contribución adicional al Medicare) a la línea 5 de su Formulario 1040-SS (sp).

357

We changed the amount of your Form 8959, Additional Medicare Tax. There was an error transferring the Additional Medicare Tax withheld amount from line 24 of Form 8959 to your tax return. (Form 1040-NR/PR/SS)

PR verbiage- Hemos cambiado la cantidad de su Formulario 8959, Additional Medicare Tax (Contribución Adicional al Medicare), en inglés. Hubo un error al transferir la cantidad de la linea 24 del Formulario 8959 a la linea 11 del Formulario 1040-SS (sp).

358

You must express the amounts you report on your United States tax return in U.S. dollars. We have used the exchange rates found at website www.fiscal.treasury.gov to convert to U.S. dollars the amounts reported in foreign currency on your return.

359

We changed the amount of total tax on line 6 of your Form 1040-SS (sp).

Corregimos la cantidad total de la contribución en la Línea 6 de su Forma 1040-SS (sp), porque sumando la Línea 3 hasta la 5 hubo un error. (1040-SS (sp))

360

We did not allow your deduction for foreign taxes paid on Form 1040, Schedule A because you already claimed those taxes as a foreign tax credit on Form 1116.

361

We changed the amount claimed as excess social security tax withheld or tier 1 RRTA withheld on page 1 of your tax return due to a computation error.

362

We didn't allow the amount claimed as additional child tax credit because Form(s) 499R-2, W-2PR or other supporting documents were not attached to your tax return.

No le concedimos la cantidad reclamada como crédito tributario adicional por hijo porque el/los Formulario(s) 499R-2/W-2PR u otros comprobantes no fueron incluidos en su planilla de contribución. (Form 1040-SS (sp))

364

You made an error transferring the amount of payments made to the U.S. Virgin Islands. We have adjusted your return accordingly.

366

Social Security

Medicare

Federal Income Taxes

Seguro Social

Medicare

Contribuciones Sobre el Ingreso Federal (Form 1040-SS (sp))

367

We changed the household employment taxes on line 4 of your Form 1040-SS (sp). The amount of cash wages reported on Schedule H, Household Employment Taxes, for your household employee was not enough to be considered taxable for employment tax purposes. Any Social Security and Medicare Tax withheld should be returned to your employee. You may also have to file Form W-2C, Corrected Wage and Tax Statement, to correct the Social Security and Medicare wages you reported.

368

We changed the amount of household employment taxes on line 4 of your Form 1040-SS (sp) because there was an error on Schedule H, Household Employment Taxes. The error was in the:

Computation of the total tax on Schedule H and/or

Transfer of that amount to line 4 of your Form 1040-SS (sp).

El cómputo del total de la contribución en el Anexo H-PR y/o

La transferencia de esa cantidad a su planilla contributiva. (Form 1040-SS (sp))

369

We didn't allow part or all of your refundable child tax credit or additional child tax credit on page 1 of your tax return. One or more of your children exceeds the age limitation.

No le concedimos parte o todo su crédito tributario adicional por hijos en la página 1 de su planilla de contribución. Uno o más de sus hijos excede la limitación de la edad. (Form 1040-SS (sp))

370

You did not reply to our request for a State Code to substantiate your entries in Sections II or III of Schedule H. We have adjusted your return accordingly.

371

We didn’t allow the expenses you reported on your Schedule C. Expenses can only be deducted to the extent they relate to income effectively connected with a trade or business in the United States.

374

We changed the refund or amount you owe based on the information you provided in response to our previous correspondence.

Corregimos su contribución basado en la información que usted proveyó en la contestación a nuestra correspondencia anterior. (Form 1040-SS (sp))

375

We didn't allow the amount claimed as excess social security tax or tier 1 RRTA withheld on your tax return because Form(s) W-2 was not attached to your tax return.

No le concedimos la cantidad reclamada de la retención del exceso de la contribución del seguro social ó lo dispuesto en la retención del RRTA 1 en la Línea 7 de su Forma 1040-SS (sp), porque la/las Formulario(s) 499R-2/W-2PR no fueron incluídas a su planilla contributiva. (Form 1040-SS (sp))

376

We changed the amount claimed as total payments on your tax return because there was an error in the addition of the payments section on your tax return.

Corregimos la cantidad reclamada como pagos totales en su planilla contributiva porque hubo un error en la sección de la suma de los pagos. (Form 1040-SS (sp))

377

Information provided to the IRS indicates that you are not eligible to claim the Health Coverage Tax Credit. Eligibility is determined through either your state workforce agency Department of Labor (DOL) or the Pension Benefit Guaranty Corporation (PBGC). Only these organizations can determine your potential eligibility. To determine eligibility, trade adjustment assistance (TAA) and alternative trade adjustment assistance (ATAA) recipients may call the DOL at 1-877-US2JOBS (TTY 1-877-889-5627). PBGC recipients should call 1-800-400-7242. La información proporcionada al IRS indica que usted no es elegible para reclamar el Crédito Tributario por Cobertura de Seguro de Salud. La elegibilidad se determina a través de su agencia estatal laboral, el Departamento del Trabajo (DOL), ó la Corporación de Beneficios Garantizados de Pensiones (PBGC). Sólo estas organizaciones pueden determinar su potencial de elegibilidad. Para determinar la elegibilidad, la ayuda para los Ajustes Comerciales (TAA) y la Alternativa de Ayuda para los Ajustes Comerciales (ATAA), los beneficiarios pueden llamar al DOL al 1-877-US2JOBS (TTY 1-877-889-5627). Los beneficiarios de PBGC deben llamar al 1-800-400-7242. (Form 1040-SS (sp))

378

383

You incorrectly figured your refundable child tax credit or Additional Child Tax Credit. We have adjusted your return accordingly. (Form 1040-NR and Form 1040-SS)

384

You may not exclude unearned income on Form 2555/Form 2555-EZ. You may be able to reduce your tax by filing an Amended Tax Return with Form 1116. (Form 1040)

385

We changed the total income on your tax return to include the taxable amount of your foreign earned income. Income excluded on Form 2555/Form 2555-EZ must be included on Form 1040 before you can exclude the income using Form 2555/Form 2555-EZ. (Form 1040)

386

We did not allow your Form 2555/Form 2555-EZ, Foreign Earned Income because you filed a 1040-NR tax return. (Form 1040-NR)

387

393

Nonresident aliens are exempt from the Individual shared responsibility payment (SRP). We adjusted your return accordingly. Any overpayment will be refunded to you. (Form 1040-NR)

394

We didn’t allow the amount claimed as Itemized Deductions because Schedule A, Itemized Deductions, of Form 1040-NR was incomplete or missing from your return. (Form 1040-NR)

395

We changed the amount claimed as refundable child tax credit or additional child tax credit on your Tax return because there was an error. The error was in the: Computation of the credit on page 2 of your tax return and/or Transfer of that amount to page 1 of your tax return.

Le cambiamos la cantidad reclamada del crédito tributario adicional por hijo en su planilla de contribución porque hubo un error. El error fue en: El cómputo del crédito en la página 2 de su planilla contributiva, y/o La transferencia de esa cantidad a la página 1 de su planilla contributiva. (Form 1040-SS (sp))

396

We changed the tax amount on your return because you did not attach a hypothetical Form 1040 or similar statement in support of your claim under Article XXV(3) of the U.S. – Canada Tax Treaty.

399

400

As a nonresident Alien, you are not allowed to take an adjustment to income for Tuition and Fees on Form 1040-NR. Your return has been adjusted accordingly. (Form 1040-NR)

401

We cannot allow the exemption(s) for your other dependent(s). As a nonresident alien, you are only allowed an exemption for yourself. We have adjusted your return accordingly. (Form 1040-NR)

402

403

United States bank interest income is not taxable. We have adjusted your return accordingly. (Form 1040-NR)

404

Based on the information you reported, it appears that you didn't include capital gains from Form 8288-A. We have adjusted your return accordingly. (Form 1040 and Form 1040-NR)

405

We changed the amount claimed for Charitable Contribution Deduction as an Adjustments to Income on your tax return. This deduction is only allowed to certain residents of India. (Form 1040-NR)

406

We disallowed your treaty exemption claim because you didn't reply to our request for more information. We have changed your tax return accordingly. (Form 1040-NR)

408

409

We can't allow your tax treaty exemption claim. Your claim is not a valid tax treaty claim. We changed your return accordingly. (Form 1040-NR)

410

We changed the amount claimed on your tax return because there was an error in the subtraction of your deductions from your adjusted gross income. (Form 1040-NR)

411

We changed the taxable income on your return because you incorrectly subtracted your itemized deductions from your adjusted gross income. (Form 1040-NR-EZ)

412

Your country of residence does not allow you to take exemptions for dependents. As a result, we disallowed certain credits claimed on your return. This change may affect any of the following credits:

Credit for other dependents

Child tax credit

Additional child tax credit

413

State income tax payments must be claimed as an itemized deduction on Schedule A, Itemized Deductions. These payments can’t be subtracted from total income on the tax return. If you filed a Schedule A, we changed it to include the state income tax payments. If you didn’t file a Schedule A, we allowed it as your total itemized deduction on Schedule A because it lowered your taxable income. (Form 1040-NR)

414

We changed the amount claimed as itemized deductions on your tax return because your deduction for state and local taxes is more than the amount allowed for your filing status. (Form 1040-NR)

415

We cannot allow your scholarship or fellowship exclusion. You didn't attach the required supporting statement. We have adjusted your return accordingly. (Form 1040-NR)

416

The amount of scholarship or fellowship exclusion cannot exceed the amount of scholarship or fellowship received. We have adjusted your return accordingly. (Form 1040-NR)

418

You aren't entitled to the standard deduction when you file Form 1040-NR. We changed your return accordingly. (Form 1040-NR)

421

Refundable child tax credit

Credit for other dependents

Nonrefundable child tax credit

Additional child tax credit

422

Each dependent listed on your tax return must have a valid Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN). For one or more of your dependents the SSN or ITIN was missing, or the last name provided doesn’t match our records or the records provided by the Social Security Administration. As a result, we disallowed certain credits claimed on your return. This change may affect any of the following credits:

Refundable child tax credit

Credit for other dependents

Nonrefundable child tax credit

Additional child tax credit

423

Because your country of residence does not allow you to take exemptions for dependents, we have disallowed your Child Tax Credit and/or Additional Child Tax Credit. (Form 1040-NR)

424

We cannot allow the amount you claimed for education credit. Nonresident aliens are not eligible for this credit. We have adjusted your return accordingly. (Form 1040-NR)

425

We didn’t allow all or part of the amount claimed for child tax credit, refundable child tax credit or additional child tax credit. Each dependent claimed for this credit must have a valid Social Security number issued by the Social Security Administration before the due date of the tax return. (Form 1040-NR)

426

You figured your total tax incorrectly on income not effectively connected with a United States trade or business on Schedule NEC on of Form 1040-NR. We have changed your tax return accordingly. (Form 1040-NR)

427

You incorrectly transferred the amount of tax on income not effectively connected with a United States trade or business from Schedule NEC of Form 1040-NR to page 2 of your return. We have adjusted your return accordingly. (Form 1040-NR)

428

You figured your tax using an incorrect tax treaty rate. We have changed your tax return accordingly. (Form 1040-NR)

429

You figured your tax incorrectly on Form 1040-NR, page 2, using the tax tables. We refigured your tax using the 30 percent (or lower treaty) rate from Schedule NEC of Form 1040-NR. We have changed your tax return accordingly. (Form 1040-NR)

430

We can't allow the amount you reported as tax withheld. You didn't attach Forms(s) W-2, 1042-S, 1099 or other supporting documents as required. We have changed your tax return accordingly. (Form 1040-NR )

431

We didn't allow the amount claimed as additional Medicare tax withholding because Form(s) 499R-2, W-2PR or other supporting documents were not attached to your tax return. No le concedimos la cantidad reclamada como Impuesto Adicional de Medicare retenido porque el/los Formulario(s) 499R-2/W-2PR u otros comprobantes no fueron incluidos en su planilla de contribución.

432

We can't allow the amount you reported for Income Tax Withheld at Source. You didn't attach Form 1042-S to verify the amount as required. We have changed your tax return accordingly. (Form 1040-NR)

433

We can't allow the amount withheld by a "Partnership Under Section 1446" . You didn't attach Form 8805 and/or Form 1042-S to verify the amount withheld as required. We have changed your tax return accordingly. (Form 1040-NR)

434

We have no record of the payment shown on Form 8288-A. We have adjusted your return accordingly. (Form 1040 and Form 1040-NR)

435

We can't allow the amount you reported as "United States Tax Withheld on Dispositions of United States Real Property Interests" . You didn't attach Form(s) 8288-A and/or 1042-S to verify the amount as required. We have changed your tax return accordingly. (Form 1040-NR)

436

Our records indicate that the amount of your Form 8288-A credit is less than you claimed. We have adjusted your return accordingly. (Form 1040 and Form 1040-NR)

437

438

We can't allow the foreign Withholding claimed on your return. We have changed your tax return accordingly. (Form 1040 and Form 1040-NR)

440

We compared the Social Security number of the primary taxpayer shown on your tax return with records from the Social Security Administration. According to these records, the Social Security number belongs to a deceased person. You should contact the Social Security Administration if this information is incorrect. This change may affect your taxable income, tax, credits or payments. (Form 1040)

441

We cannot allow your Form 8805 or Form 1042-S credit because the Social Security number shown on your Form 1040-NR and the credit document do not match. We have adjusted your return accordingly. (Form 1040-NR)

442

You did not reply to our request for a copy of your green card and signed declaration. We have adjusted your return accordingly. (Form 1040)

443

You are not entitled to a refund of tax withheld on United States social security benefits as shown on your Form 1040-NR. As a nonresident alien, 85 percent of your social security benefits are taxed at 30 percent. We have adjusted your return accordingly. (Form 1040-NR)

446

You transferred your tax due incorrectly from your Form 1040 to your Form 1040-NR. We have changed your tax return accordingly.

447

Your tax rate for gambling winnings paid to nonresident aliens is 30 percent. We have changed your tax return accordingly. (Form 1040-NR)

448

Gambling winnings are exempt from tax due to a United States tax treaty with your country of residence. We have changed your tax return accordingly. (Form 1040-NR)

449

We changed the amount of taxable income on your tax return because the exemption amount on line 40 was subtracted incorrectly from line 39. (Form 1040-NR)

452

Your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) was missing or the last name provided doesn’t match our records or the records provided by the Social Security Administration. As a result, we disallowed certain credits on your return claimed for one or more of your dependents. This change may affect your taxable income, tax, or any of the following credits:

Child tax credit

Additional child tax credit

453

Your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) was missing or the last name provided doesn’t match our records or the records provided by the Social Security Administration. As a result, we disallowed the amount you claimed as refundable child tax credit or additional child tax credit on your return. (Form 1040-SS (sp))

454

Your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) was missing or the last name provided doesn’t match our records or the records provided by the Social Security Administration. As a result, we disallowed the amount you claimed as refundable child tax credit or additional child tax credit on your return. (Form 1040-SS)

455

We changed the amount of taxable income because we did not allow the amount claimed as exemption amount. Deductions for exemptions are only for estates and trusts.

457

We changed your total exemption amount because there was an error in the computation of your total exemption amount. We have adjusted your return accordingly. (Form 1040-NR)

458

You did not claim the exemption amount for yourself. We allowed your personal exemption on your return. (Form 1040-NR)

460

461

We did not allow the amount of Additional Child Tax Credit claimed on your tax return. Information on your return indicates that you do not qualify for this credit.

463

464

We didn’t allow some or all of the amount you claimed as refundable or additional child tax credit on line 9 of your Form 1040-SS because the individual taxpayer identification number (ITIN) for one or more the qualifying persons has expired. (Form 1040-SS)

465

We did not allow part or all of the nonrefundable Child Tax Credit and/or Additional Child Tax Credit on page 2 of your tax return because your dependent(s) with an Individual Taxpayer Identification Number (ITIN) did not meet the substantial presence test in Part I of your Schedule 8812, Credits for Qualifying Children and Other Dependents (Form 1040-NR)

470

We didn't allow the amount claimed as refundable child tax credit or Additional Child Tax Credit on your tax return. We have no record of receiving Form 8862, Information to Claim Certain Credits After Disallowance. You must submit a completed Form 8862 to recertify your eligibility for any of the credits claimed. (Form 1040-SS)

No permitimos la cantidad reclamada como Crédito Tributario Adicional por Hijos en su planilla de contribución. No tenemos registro de recibir el Formulario 8862(SP), Información para Reclamar Ciertos Créditos Después de Haber Sido Denegados. Usted debe presentar un Formulario 8862(SP) completado para volver a certificar su elegibilidad para cualquiera de los créditos reclamados. (Form 1040-SS (sp))

472

You don't owe self-employment tax when your net earnings from self-employment are less than $434, as shown on Form 1040-SS. We changed your self-employment tax accordingly. (Form 1040-SS)

473

You figured or transferred your social security self-employment tax incorrectly on Form 1040-SS. (Form 1040-SS)

474

You figured your refund or the amount you owe incorrectly on Form 1040-SS. (Form 1040-SS)

475

Your refundable child tax credit or Additional Child Tax Credit was reduced or not allowed because your dependent child's TIN was missing. (Form 1040-SS)

476

Your refundable child tax credit or Additional Child Tax Credit was reduced or not allowed because your dependent child's name and/or TIN were invalid. (Form 1040-SS)

477

We can't allow the additional child tax credit you claimed. You must have three or more qualifying children to claim the credit. We have adjusted your return accordingly. (Form 1040-SS)

478

483

We cannot allow the amount you claimed for Recovery Rebate Credit. Dual-status taxpayers are not eligible for this credit. We have adjusted your return accordingly.

484

We didn’t allow the credit on your Form 1040 for tax paid to the U.S. Virgin Islands. You didn’t attach Form 8689, Allocation of Individual Income Tax to the U.S. Virgin Islands, to support the amount claimed. We’ve adjusted your tax return accordingly.

485

You don't qualify to use the optional method on Form 1040-SS (sp). We changed your self-employment tax accordingly.

Usted no califica para usar el método opcional en la Forma 1040-SS (sp). Por lo tanto, le cambiamos su contribucion sobre el trabajo por cuenta propia. (Form 1040-SS (sp))

486

You didn’t multiply your self-employment earnings by .9235, as shown on Form 1040-SS (sp). We changed your self-employment tax accordingly.

487

You don't owe self-employment tax when your net earnings from self-employment are less than $434, as shown on Form 1040-SS (sp). We changed your self-employment tax accordingly.

Usted no debe contribución sobre el trabajo por cuenta propia cuando sus ganancias netas del trabajo por cuenta propia son menores de $434, como esta mostrado en la Form 1040-SS (sp). Por lo tanto, le cambiamos su contribución sobre el trabajo por cuenta propia. (Form 1040-SS (sp))

488

You figured or transferred your social security self-employment tax incorrectly on Form 1040-SS (sp). We changed your self-employment tax accordingly.

Usted calculó o transfirió incorrectamente la contribución sobre el trabajo por cuenta propia. Por lo tanto, le cambiamos su contribución sobre el trabajo por cuenta propia. (Form 1040-SS (sp))

489

You figured your refund or the amount you owe incorrectly on Form 1040-SS (sp).

Usted calculó incorrectamente su reintegro o la cantidad que usted adeuda en el Formulario 1040-SS (sp). (Form 1040-SS (sp))

490

Your refundable child tax credit or Additional Child Tax Credit was reduced or not allowed because your dependent child's TIN was missing.

Su Crédito Tributario Adicional por Hijos fue reducido o no fue permitido porque faltaba el TIN de su hijo(a) dependiente. (Form 1040-SS (sp))

491

Your refundable child tax credit or Additional Child Tax Credit was reduced or not allowed because your dependent child's name and/or TIN were invalid.

Su Crédito de Impuesto por Hijo(a) Adicional fue reducido o no fue permitido porque el TIN de su hijo(a) dependiente era inválido. (Form 1040-SS (sp))

492

We can't allow the additional child tax credit you claimed. You must have three or more qualifying children to claim the credit. We have adjusted your return accordingly.

No podemos permitirle el crédito tributario adicional por hijos que usted reclamó. Usted debe tener tres o más hijos calificados para poder reclamar el crédito. Por lo tanto, le hemos ajustado su planilla de contribución. (Form 1040-SS (sp))

493

We reduced or disallowed your refundable child tax credit or additional child tax credit because one or more of the children listed was born after the current tax period. Therefore they are not eligible for this credit. We have adjusted your return accordingly.

Nosotros redujimos o le desaprobamos su crédito tributario adicional por hijos, porque uno o más de sus hijos que usted mencionó nació nacieron después del período contributivo actual. Por eso, él o ella no son elegibles para este crédito. Por lo tanto, le hemos ajustado su planilla de contribución. (Form 1040-SS (sp))

494

We disallowed part of the tax treaty exemption on your return because you claimed more than the maximum amount. We have adjusted your return accordingly. (Form 1040-NR)

495

We didn’t allow the amount you claimed as nonrefundable child tax credit, refundable child tax credit or additional child tax credit on your tax return because you or one or more of your dependents claimed for the credit did not have a taxpayer identification number assigned by the due date of the tax return. (Form 1040-NR)

496

497

Refundable child tax credit

Credit for other dependents

Nonrefundable child tax credit

Additional child tax credit

498

We disallowed the amount claimed as refundable child tax credit or Additional Child Tax Credit on your tax return. Our records indicate that we’ve banned you from claiming refundable child tax credit or Additional Child Tax Credit for this tax year. (Form 1040-SS)

No permitimos la cantidad reclamada como Crédito Tributario Adicional por Hijos en su planilla de contribución. Nuestros récords indican que le hemos prohibido a usted reclamar el Crédito Tributario Adicional por Hijos para este año contributivo. (Form 1040-SS (sp))

499

500

Exceptions & meaning →

No Reply to Correspondence¶

The No Reply instructions have been divided into tables starting with instructions for all forms filed by international taxpayers followed by form specific instructions in this order:

All Forms (Table 1)

Form 1040-NR and Schedule 1, 2, and 3 (Table 2)

Form 1040-SS (sp)/Form 1040-SS (Table 4)

Form 1040 (Table 5)

Form 1040 with Form 1042-S/Form SSA/RRB-1042-S (Table 6)

Form 2555 (Table 7)

Dual-Status (Table 8)

Streamlined Filing Compliance Procedures (Table 9)

Second correspondence issues should be considered prior to applying No Reply procedures.

If the instructions under "Action To Be Taken" say to enter CCC 3, it must be entered in the first position of Field 01CCC.

Follow instructions under IRM 3.12.3, Error Resolution, Individual Income Tax Returns, No Reply/Incomplete Reply/Undeliverables, before entering CCC U.

If the instructions under "Action To Be Taken" say to enter Audit Code B, that must be the first correction made.

Table 1. All Forms - No Reply Instructions

Then

The taxpayer did not provide an acceptable signature in the reply OR page of the return with the signature is not attached or is illegible,

See IRM 3.12.3 for no reply instructions regarding missing signatures

EC 218 Taxpayer is claiming IRC 893 or Employee of Foreign Government and International Organizations and did not provide required information,

Delete the amount of exempted income claimed on line 8d, Schedule 1, Form 1040(TY20 line 8, Schedule 1) or Form 1040-NR (TY19, line 22, Form 1040-NR).

Exceptions & meaning →

Note:¶

Add the amount to Field 03WG (Form 1040/Form 1040-NR) if not present.

Assign TPNC 406

EC 366 Withholding is claimed and Form 1042-S is NOT attached,

Delete Form 1042-S withholding.

Assign TPNC 432.

EC 366≡ ≡ ≡ ≡ ≡ ≡ ≡ of withholding is claimed and Form W-2, Form 1099, or Form 8805 is not attached,

Delete the withholding entries.

Assign TPNC 430 for U.S. Withholding (Form W-2, Form 1099, etc.) on Form 1040-NR.

Assign TPNC 582 for Form 1040.

Assign TPNC 433 for withholding by a "Partnership Under Section 1446" (Form 8805).

Exceptions & meaning →

Exception:¶

Research CC IRPTR (if appropriate for the tax period) to locate the total withholding figure. Allow only the withholding displayed on IRPTR, not to exceed the amount claimed by the taxpayer. Before reducing the taxpayer's withholding amount, ensure that the amount being reduced does not represent another type of "payment" (e.g., ES Payments). Research IMFOL as appropriate.

Taxpayer did not provide Form 8854 as requested,

Continue normal processing procedures.

Table 2. Form 1040-NR - No Reply Instructions

Then Action To Be Taken

Taxpayer didn’t reply to request for Form 1040-NR for multiple filers,

Delete the second name.

GTSEC 03/04 and delete the second person’s income as applicable.

GTSEC 03/05 and delete the second person’s withholding as applicable.

Assign TPNC 334

Taxpayer did not identify foreign country, treaty article number, or the exempt amount for a valid treaty exemption claim,

Delete the treaty exemption amount.

Enter the amount to the appropriate field(s) in Section 03 and/or Section 04 as income.

Assign TPNC 406.

Taxpayer is in the United States more than 183 days and tax treaty not listed,

Tax the income at the appropriate rate,

Enter the amount in Field 03TNC, and

Assign TPNC 428.

EC 018 - Taxpayer has Form SSA/RRB 1042-S attached and did not respond with an SSN (or reply with the same SSN),

Enter CCC "3"

Multiply 85 percent of the social security benefits by 30 percent,

GTSEC 46 and enter the 85 percent amount in Field 4613C,

GTSEC 05 and enter the 30 percent in Field 03TNC,

GTSEC 03 and delete social security benefits wherever reported or included,

GTSEC 05 and enter the withholding in Field 0325G,

Clear EC 018,

Assign TPNC 443.

line 1b and 10c (TY19, lines 12 and 31), Missing Form 1042-S or similar statement and entries are present on lines 1b and 10c (TY19, lines 12 and 31).

Delete amount from line 10c (TY19, line 31) and assign TPNC 415.

line 7 (TY19, line 14), Schedule D for Form 8288-A

GTSEC 12 and enter the amount(s) from box 3, Form 8288-A in Field 1207.

Assign TPNC 404.

line 7 (TY19, line 14), Schedule D, if other than Form 8288-A,

Refer to IRM 3.12.3 Form 1040 line 7 no reply instructions.

line 8, Schedule 1 missing,

Refer to IRM 3.12.3 Form 1040 line 8 no reply instructions.

line 9 (TY19, line 23), Total Effectively Connected Income,

Refer to IRM 3.12.3 Form 1040 line 9 no reply instructions.

line 10a, Schedule 1 missing,

Refer to IRM 3.12.3 Form 1040 line 10a no reply instructions.

line 10c (TY19, line 31), supporting documents not attached to exclude scholarship/fellowship (EC 229),

Delete the scholarship/fellowship exclusion and assign TPNC 415.

line 10d (TY19, line 35) Adjusted Gross Income,

Refer to IRM 3.12.3 Form 1040 line 10c, Adjusted Gross Income no reply instructions.

line 12 (TY19, line 37), Schedule A Itemized Deduction missing or incomplete,

Assign TPNC 394.

line 16 (TY19, line 42) EC 265 - Article XXV(3) hypothetical statement for calculating married filing jointly tax is missing,

Assign TPNC 396.

line 16b (TY19, line 42b), Form 4972 missing,

Refer to IRM 3.12.3 Form 1040 line 16 no reply instructions.

line 17, Schedule 2 missing,

Refer to IRM 3.12.3 Form 1040 line 17 no reply instructions.

line 19 (TY19, line 49) Schedule 8812 is missing or incomplete,

Enter correct number of qualifying children in Field 94CEV and 946EV then assign TPNC 592.

line 20, Schedule 3 missing,

Refer to IRM 3.12.3 Form 1040 line 20 no reply instructions.

line 23a (TY19, line 54) Schedule NEC is missing or incomplete,

Divide the amount in Field 03NEC by .30,

GTSEC 46 and enter the result in Field 4613C.

line 23b, Schedule 2 missing

Refer to IRM 3.12.3 Form 1040 line 23 no reply instructions.

line 25d (TY19, line 62a)EC 366≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form W-2 or Form 1099, not attached,

Delete entry in Field 03WH.

Assign TPNC 430.

Exceptions & meaning →

Exception:¶

Research CC IRPTR (if appropriate for the tax period) and allow only the withholding displayed on IRPTR for Form W-2 and Form 1099, not to exceed the amount claimed by the taxpayer on line 25d (TY19, line 62a). If the withholding displayed on IRPTR for this amount is for Form 8805, Form 8288-A or Form 1042-S, follow the No Reply instructions for lines 25e, 25f or 25g (TY19, lines 62b, 62c or line 62d). Before reducing the taxpayer's withholding amount, ensure that the amount being reduced does not represent another type of "payment" (e.g., ES Payments). Research IMFOL as appropriate.

line 25e (TY19, line 62b) EC 366≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8805 not attached (Section 1446),

Delete entry in Field 0325E.

Assign TPNC 433.

Exceptions & meaning →

Exception:¶

Research CC IRPTR (if appropriate for the tax period) and allow only the withholding displayed on IRPTR for Form 8805, not to exceed the amount claimed by the taxpayer on line 25e (TY19, line 62b). If the withholding displayed on IRPTR for this amount is for Form W-2, Form 1099, Form 8288-A or Form 1042-S, follow the No Reply instructions for lines 25e, 25f or 25g (TY19, lines 62b, 62c or line 62d). Before reducing the taxpayer's withholding amount, ensure that the amount being reduced does not represent another type of "payment" (e.g., ES Payments). Research IMFOL as appropriate.

line 25f (TY19, line 62c) EC 366 Form 8288-A or substantial evidence

Exceptions & meaning →

Example:¶

closing documents or settlement statement which shows the amount of tax withheld

Delete entry in Field 0325F.

Assign TPNC 435.

line 25g (TY19, line 62d) EC 366 Form 1042-S Tax on Income Not Effectively Connected is not attached,

Delete entry in Field 0325G.

Assign TPNC 432.

Exceptions & meaning →

Note:¶

ALL Form 1042-S withholding must be supported by Form(s) 1042-S attached to the tax return.

line 28 (TY19, line 64) Schedule 8812 not attached,

Enter the number of qualifying children in Field 94CEV and 946EV.

Assign TPNC 592.

line 31, Schedule 3 missing

Refer to IRM 3.12.3 Form 1040 line 31 no reply instructions.

Schedule 1

line 3 (TY19, line 13, 1040-NR), Schedule C or Statement not attached or incomplete,

Refer to IRM 3.12.3 Form 1040, Schedule 1, line 3 no reply instructions,

line 4 (TY19, line 15, 1040-NR), Form 4797, 4684, or statement not attached,

Refer to IRM 3.12.3 Form 1040 Schedule 1 line 4 no reply instructions.

line 5 (TY19, line 18, 1040-NR), Schedule E, statement, or clear indication of type of income is missing or incomplete,

Refer to IRM 3.12.3 Form 1040 Schedule 1 line 5 no reply instructions.

line 6 (TY19, line 19, 1040-NR),Schedule F or statement not attached or incomplete,

Refer to IRM 3.12.3 Form 1040 Schedule 1 line 6 no reply instructions.

line 7, Schedule 1 (TY19, line 20, 1040-NR), Negative entry is claimed for Unemployment,

Refer to IRM 3.12.3 Form 1040 Schedule 1 line 7 no reply instructions.

line 13 (TY20, line 12; TY19, line 25, 1040-NR), Form 8889, Health Savings Account Deduction,

Refer to IRM 3.12.3 Form 1040 Schedule 1 line 13 no reply instructions.

line 14 (TY20, line 13; TY19, line 26, 1040-NR), Amount present for $2,000 or more and no Form 3903/Form 3903F attached,

Refer to IRM 3.12.3 Form 1040 Schedule 1 line 14 no reply instructions.

Dotted portion of line 26 (TY20, line 22; TY19, line 34, 1040-NR), Form 2106 (e.g., identified as QPA) not attached or incomplete,

Refer to IRM 3.12.3 Form 1040 Dotted portion of Schedule 1, line 26 no reply instructions.

Schedule 2

line 1 (TY19, line 43, 1040-NR), Form 6251 not attached (EC 267) or request for Form 6251 and no amount on line 43 (EC 270).

Refer to IRM 3.12.3 Form 1040 Schedule 2 line 1 no reply instructions.

line 6 (TY19, line 56, 1040-NR), Form 4137 or Form 8919 not attached and Tax on Tips liability cannot be determined,

Refer to IRM 3.12.3 Form 1040 Schedule 2 line 5 no reply instructions.

line 8 (TY20, line 6; TY19, line 57, 1040-NR) Form 5329 not attached,

Refer to IRM 3.12.3 Form 1040 Schedule 2 line 8 no reply instructions.

line 9 (TY20, line 7a; TY19, line 59a, 1040-NR), Schedule H not attached,

Refer to IRM 3.12.3 Form 1040 Schedule 2 line 9 no reply instructions.

State Code, Schedule H,

Delete appropriate entries from Sections 44/45, Schedule H, Sections II and III. Assign TPNC 370.

line 10 (TY20, line 7b; TY19, line 59b, 1040-NR), Form 5405 not attached or incomplete,

Refer to IRM 3.12.3 Form 1040 Schedule 2 line 10 no reply instructions.

line 17 (TY20, line 8; (TY19, line 60, 1040-NR) and no code is indicated and:

Form 8611 not attached

Form 8828 not attached

Form 4970 not attached

Refer to IRM 3.12.3 Form 1040 Schedule 2 line 8 no reply instructions.

Schedule 3

line 1 (TY19, line 46, 1040-NR), Form 1116 not attached.

Delete the entry in Field 05301.

Assign TPNC 513.

line 2 (TY19, line 47, 1040-NR), Form 2441 not attached or incomplete,

Refer to IRM 3.12.3 Form 1040 Schedule 3 line 2 no reply instructions.

line 4 (TY19, line 48, 1040-NR), Form 8880 not attached,

Refer to IRM 3.12.3 Form 1040 Schedule 3 line 4 no reply instructions.

line 5 (TY19, line 50, 1040-NR), Form 5695 not attached or incomplete for credit,

Refer to IRM 3.12.3 Form 1040 Schedule 3 line 5 no reply instructions.

line 6a (TY19, line 51a, 1040-NR), Form 3800 (or applicable Form) either not attached or incomplete,

Refer to IRM 3.12.3 Form 1040 Schedule 3 line 6a no reply instructions.

line 6b (TY19, line 51b, 1040-NR), Form 8801 incomplete or not attached,

Refer to IRM 3.12.3 Form 1040 Schedule 3 line 6b no reply instructions.

line 6c (TY19, line 51c, 1040-NR), and Form 8839 noted and Form 8839 not attached or incomplete,

Refer to IRM 3.12.3 Form 1040 Schedule 3 line 6c no reply instructions.

line 6e (TY20, line 6c, Schedule 3; TY19, line 51c, 1040-NR), Form 8910 is missing or incomplete,

Delete the vehicle credit amount.

Assign TPNC 522

line 6f (TY20, line 6c, Schedule 3; TY19, line 51c, 1040-NR) Form 8936 is missing or incomplete,

Delete the vehicle credit amount.

Assign TPNC 523

line 6f (TY20, line 6c, Schedule 3; TY19, line 51c, 1040-NR), and Form 8834, Form 8910, or Form 8936 is missing or incomplete,

Delete the vehicle credit amount.

Assign TPNCs as follows:

Form 8834 - Assign TPNC 337

Form 8910 - Assign TPNC 333

Form 8936 - Assign TPNC 335

line 6g (TY20, line 6c, Schedule 3; TY19, line 51c, 1040-NR), and Form 8396 notated and Form 8396 incomplete or not attached,

Refer to IRM 3.12.3 Schedule 3 Form 1040 line 6g no reply instructions.

line 6i (TY20, line 6c, Schedule 3; TY19, line 51c, 1040-NR), and Form 8834 is missing or incomplete,

Delete the vehicle credit amount.

Assign TPNC 534

line 6z (TY20, line 6c, Schedule 3; TY19, line 51c, 1040-NR), Entry of $500 or more and:

Form 8844 notated

Form 8860 notated

Form 8884 notated

Refer to IRM 3.12.3 Form 1040 Schedule 3 line 6z no reply instructions per Form notated.

line 8, (TY20, line 7, Schedule 3; TY19, line 52, 1040-NR), Schedule 3 incomplete or not attached and credit not supported

Refer to IRM 3.12.3 Form 1040 Schedule 3 line 8 no reply instructions.

line 12 (TY20, line 11, Schedule 3; TY19, line 68, 1040-NR), Form 4136 is not attached,

Refer to IRM 3.12.3 Form 1040 Schedule 3 line 12 no reply instructions.

line 13a (TY20, line 12a, Schedule 3; TY19, line 69a, 1040-NR), ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 2439 is not attached,

Refer to IRM 3.12.3 Form 1040 Schedule 3 line 13a no reply instructions.

line 13b (TY20, line 12b, Schedule 3) Schedule H or Form 7202 is not attached

Refer to IRM 3.12.3 Form 1040 Schedule 3 line 13b no reply instructions.

line 13c (TY20, line 12c, Schedule 3; TY19, line 69c, 1040-NR), Form 8885 is not attached or is not supported by proof of payment,

Refer to IRM 3.12.3 Form 1040 Schedule 3 line 13c no reply instructions.

line 12e, Schedule H or Schedule SE missing

Refer to IRM 3.12.3 Form 1040 Schedule 3 line 12e no reply instructions.

Prior Year

Form 8332, Form 2120, or copy of divorce decree is not attached,

Exceptions & meaning →

Note:¶

Correspondence for Form 8332/2120 only applies to TY17 and prior

Deny the dependent exemption, Child Tax Credit, and Additional Child Tax Credit for each dependent in position 4 of Field 01EXC.

Exceptions & meaning →

Note:¶

Use Field 94EXV to suppress the dependent exemption and Field 94CEV to adjust the number of dependents eligible for the Child Tax Credit.

line 69b (TY10 and TY11) Form 8839 is incomplete or not attached, or the supporting adoption documents are not attached,

Refer to IRM 3.12.3 Form 1040 Schedule 5 line 74d or line 75 write-in no reply instructions.

line 69c (TY07 - TY12) Form 8801 is not attached,

Refer to IRM 3.12.3 Form 1040 Schedule 5 line 71 no reply instructions.

Schedule A- line 7- (TY 2017 and prior) Unreimbursed Employee Business Expenses ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and no Form 2106/Form 2106-EZ or similar statement attached,

Delete the amount if present in Field 07GMD pertaining to Unreimbursed Employee Business Expenses.

Assign TPNC 553.

Table 4. Form 1040-SS and Form 1040-SS (sp) - No Reply Instructions

Action To Be Taken

line 3, Part I has an amount and Part V (Schedule SE) is missing or liability cannot be determined,

Refer to IRM 3.12.3 Form 1040 Schedule 2 line 4 no reply instructions to dummy Schedule SE.

Form 8959 is missing,

Enter SE income if present from Schedule SE, line 6 (PY22 and prior Part V, line 6 of Form 1040(PR)) or Form 1040-SS in Field 7108.

If Field 7118> matches the taxpayer amount on line 5 of Part I of Form 1040-SS (sp) or Form 1040-SS then Clear EC 331.

If Field 7118> does not match the taxpayer amount on line 5 of Part I of Form 1040-SS (sp) or Form 1040-SS then enter the taxpayer amount in Field 7118V.

Supporting documents for Part V of Form 8959 are missing,

GTSEC 71 and delete the amount in Field 7119 that’s not supported. Don’t change other fields in Section 71.

If EC 331 or EC 366 generate, assign TPNC 431.

Schedule H is missing,

Delete entry on line 4.

When Error Code 334 generates, enter the taxpayer's amount for line 4 plus the computer underprint for line 3 in Field 94TXV.

If Error Code 334 re-generates, assign TPNC 329 (Form 1040-SS) or 359 (Form 1040-SS (sp))

Taxpayer did not provide supporting documentation for Excess SST/RRTA,

Enter the amount of Excess SST/RRTA that is supported by documentation into Field 94ESV.

Assign TPNC 375 (Form 1040-SS (sp)) or TPNC 345 (Form 1040-SS).

Exceptions & meaning →

Exception:¶

Research CC IRPTR (if appropriate for the tax period) (for both taxpayers if FSC 2) to determine the correct Excess SST figure. If you can determine the taxpayer's Excess SST, allow the amount.

Taxpayer is claiming additional child tax credit and did not respond with Part II, Form 1040-SS or Form 1040-SS (sp), and/or substantiation for an entry in Field 47SSM,

Adjust the amount in Field 47SSM to match the amount that is supported by documentation.

Assign TPNC 362 (Form 1040-SS (sp)) or TPNC 332 (Form 1040-SS) as appropriate.

Taxpayer did not respond with supporting documentation for total payments,

Assign TPNC 376 (Form 1040-SS (sp)) or TPNC 346 (Form 1040-SS) as appropriate.

Table 5. Form 1040 - No Reply Instructions

Then Action To Be Taken

There is an indication that the taxpayer is claiming child tax credit and the amount of excluded Puerto Rican income is not provided by the taxpayer,

Enter a "1" in Field 94CDV.

Assign TPNC 252.

Form 1040 with an address in PR or taxpayer with only income from PR is claiming additional child tax credit and did not respond with substantiation for entry in Field 47SSM,

Enter a "1" in Field 94ACV.

Assign TPNC 332.

Taxpayer is claiming Section 893 or Employee of Foreign Government and International Organizations and did not provide evidence concerning their non United States citizen status (e.g., a copy of their green card), the United States Citizenship and Immigration Services (CIS) statement/Form I-508, the State Department certification or the Number of the Executive Order,

Delete the amount of exempted income claimed on line 8z, Schedule 1, Form 1040.

Exceptions & meaning →

Note:¶

Add the exempted income claimed to the wage line of Form 1040 if not present.

Assign TPNC 406

Taxpayer is claiming a credit for Form 8689, Allocation of Individual Income Tax to the U.S. Virgin Islands, on dotted portion next to line 33 (TY19, line 19), Form 1040, or Schedule 3, line 13 (TY19, line 14), and Form 8689 isn’t attached,

Delete the credit amount identified as "Form 8689" .

When EC 366 generates, assign TPNC 484.

Taxpayer is claiming Form 8288-A withholding and does not respond to our request for proof of the 8288-A withholding

Remove the 8288-A withholding

When EC 366 generates, assign TPNC 582

Table 6. Form 1040 with Form 1042-S or Form SSA/RRB-1042-S - No Reply Instructions

Then Action To Be Taken

Taxpayer is reporting income and withholding from Form 1042-S only and taxpayer did not respond to our request for the U.S. status,

Convert to Form 1040-NR.

Assign TPNC 311.

Taxpayer did not respond with green card AND declaration statement (EC 118 and EC 334) to verify the withholding being claimed on Form SSA/RRB 1042-S,

Delete the withholding.

Assign TPNC 442 when EC 366 generates.

EC 018 - Taxpayer has Form SSA/RRB 1042-S attached and did not respond with an SSN (or reply with the same SSN),

Delete the withholding.

Edit CCC "3"

Clear EC 018

When EC 366 generates - assign TPNC 440.

Table 7. Form 2555 - No Reply Instructions

Then Action To Be Taken

Form 2555 is not attached,

Follow all the steps below:

Ensure the foreign earned income is included on the applicable income lines,

DLSEC 34 and/or 35,

Delete the amount of deduction and/or exclusion on Form 1040, and

Assign TPNC 300.

Exceptions & meaning →

Note:¶

If the Form 2555 was the only International aspect of the return, SSPND 610 to renumber to domestic program.

Bona fide dates and/or physical presence dates are not submitted or cannot be determined,

Follow all the steps below:

Ensure the foreign earned income is included on the applicable income lines,

DLSEC 34 and/or 35,

Delete the amount of deduction and/or exclusion on Form 1040, and

Assign TPNC 309.

Exceptions & meaning →

Note:¶

If the Form 2555 was the only International aspect of the return, SSPND 610 to renumber to domestic program.

Missing page 1, 2 or 3 Form 2555

Ensure the foreign earned income is included on the applicable income lines,

DLSEC 34 and/or 35,

Delete the amount of deduction and/or exclusion on Form 1040,

Assign TPNC 300.

Exceptions & meaning →

Note:¶

If the Form 2555 was the only International aspect of the return, SSPND 610 to renumber to domestic program.

Combined Form 2555 submitted for primary and secondary and it can be determined that each spouse has income.

Follow all the steps below:

Ensure the foreign earned income is included on the applicable income lines,

DLSEC 34 and/or 35,

Delete the amount of deduction and/or exclusion on Form 1040, and

Assign TPNC 344

Exceptions & meaning →

Note:¶

If the Form 2555 was the only International aspect of the return, SSPND 610 to renumber to domestic program.

EC 156 Income is reported on line 20a or 20b, Form 2555 and no Schedule C is attached,

Ensure the amount reported by the taxpayer on line 20a or 20b of Form 2555 is also reported as income on Form 1040. If not reported add the amount that is not reported to Line 8d, Schedule 1, Form 1040 and enter the total in Field 04OTI.

Enter "V" in Field 01ACD if the taxpayer appears to be liable for self-employment tax. Use instructions at EC 088 at IRM 3.22.3.129.1 to determine liability.

Enter C in the Clear Field for EC 156. Assign TPNC 385 if EC 218 generates.

Table 8. Dual-Status - No Reply Instructions

Then Action To Be Taken

The taxpayer indicates filing of a dual-status Return but did not reply with to our request for the Form 1040-NR,

Convert form filed to a Form 1040-NR.

Assign TPNC 328.

The taxpayer indicates filing of a dual-status Return but did not reply with to our request for the Form 1040,

Continue to process as a Form 1040-NR

The taxpayer uses FSC 2 and did not respond with the name and signature of the spouse,

Enter "3" in Field 01FSC.

Assign TPNC 103.

FSC 2, both taxpayers have income and no reply to request for separate returns,

Enter CCC "3" and "U" .

If controlling document is Form 1040-NR, renumber to Form 1040.

Process the Form 1040 return using FSC 2.

Assign TPNC 321.

Table 9. Streamlined Filing Compliance Procedures- No Reply Instructions

Then Action To Be Taken

Missing Certification - Taxpayer does not respond with a signed certification,

Process as normal returns by doing the following:

Remove any edits of SPC "P" , CCC "M" , CCC "R" and "P" . Edit CCC "N" if required, see IRM 3.22.3.13.

Complete processing of all returns in the submission.

If a return has Form 3520, Form 3520-A, Form 5471, Form 5472, Form 926, or Form 8865 attached, route the entire submission to LB&I Mail Stop 4305 AUSC after processing is complete indicating "Streamlined No Reply - International information returns attached."

All 1040-X returns must go to AM to be processed. Place an AM Streamlined cover sheet on each Form 1040-X and route to AM. Be sure to indicate in the CSR instructions section that SP corresponded and that the TP did not reply.

Exceptions & meaning →

Example:¶

Answer "Yes" to Corresponded for Certification Issue and "No" for Complete Reply Received.

Missing Signature - Taxpayer does not respond with a certification signature, and the return is NOT filed Married Filing Jointly,

Follow the procedures under "Missing Certification" above.

Missing Signature(s)- Taxpayer does not respond with certification signatures, the return is filed Married Filing Jointly, and neither taxpayer signed the certification,

Follow the procedures under "Missing Certification" above.

Other - Taxpayer does not respond to Streamlined correspondence for other missing items but the return has a certification with at least one signature,

Process the return with Streamlined procedures.

Follow the Reply procedures in IRM 3.22.3.7.3.2.

Do not enter CCC "U" if this is the only correspondence item.

Exceptions & meaning →

Prior Year Treaty Chart for Treaties In Force after 2005¶

Compensation for Personal Services Performed in United States Exempt from U.S. Income Tax Under Income Tax Treaties

Country

Purpose

Maximum Presence in the U.S.

Required Employer or Payer

Maximum Amount of Compensation

Treaty Article

Bangladesh TY 2006 and prior

N/A

Belgium TY 2007 - Prior

Scholarship or Fellowship Grant

5 years

Any U.S. or foreign resident

No limit

21(1)

Belgium TY 2007 - Prior

Independent personal service

182 days

Any contractor

No limit

14(2)(a)(b)

Belgium TY 2007 - Prior

Public Entertainment

90 days

Any contractor

$3,000

14(2)(c)

Belgium TY 2007 - Prior

Dependent personal service

182 days

Belgium resident

No limit

Belgium TY 2007 - Prior

Teaching

2 years

U.S. educational institution

No limit

Belgium TY 2007 - Prior

Studying and Training: Remittances or allowances

5 years

Any foreign resident

No limit

21(1)

Belgium TY 2007 - Prior

Studying and Training: Compensation during training

12 consecutive months

Belgium resident

$5,000

21(2)(b)

Belgium TY 2007 - Prior

Studying and Training: Compensation during training

5 years

Other foreign or U.S. resident

$2,000 p.a.

21(1)

Belgium TY 2007 - Prior

Studying and Training: Compensation while gaining experience

12 consecutive months

Belgium resident

$5,000

21(2)(a)

Belgium TY 2007 - Prior

Studying and Training: Compensation under U.S. Govt Program

1 year

U.S. government or its contractor

$10,000

21(3)

Bulgaria TY 2008 - Prior

N/A

Canada TY 2008 - Prior

Independent personal service

No limit

Any contractor

No limit

XIV

Canada TY 2008 - Prior

Public Entertainment

No limit

Any contractor

$15,000 p.a.

XVI

Canada TY 2008 - Prior

Dependent personal service

No limit

Any U.S. or foreign resident

$10,000

Canada TY 2008 - Prior

Dependent personal service

183 days

Any foreign resident

No limit

Canada TY 2008 - Prior

Studying and Training: Remittances or allowances

No limit

Any foreign resident

No limit

Germany TY 2008 and prior

Scholarship or fellowship grant

No limit

Any U.S. or foreign resident

No limit

21(1)

Germany TY 2008 and prior

Independent personal service

No limit

Any contractor

No limit

Germany TY 2008 and prior

Independent personal service: Public entertainment

No limit

Any contractor

$20,000 p.a.

Germany TY 2008 and prior

Dependent personal service

183 days

Any foreign resident

No limit

Germany TY 2008 and prior

Dependent personal service: Public entertainment

183 days

Any foreign resident

$20,000 p.a.

Germany TY 2008 and prior

Teaching

2 years

U.S. educational or research institution

No limit

20(1)

Germany TY 2008 and prior

Studying and Training: Remittances or allowances

No limit

Any foreign resident

No limit

20(2)

Germany TY 2008 and prior

Studying and Training: Compensation during study or training

4 years

Any U.S. or foreign resident

$5,000 p.a.

20(4)

Germany TY 2008 and prior

Studying and Training: Compensation while gaining experience

1 year

Any German enterprise or foreign organization or institution

$10,000

20(5)

Iceland TY 2008 - Prior

N/A

Italy TY 2010 - Prior

Independent personal service

183 days

Any contractor

No limit

Italy TY 2010 - Prior

Independent personal service: public entertainment

90 days

Any contractor

$12,000 p.a.

17(1)

Italy TY 2010 - Prior

Dependent personal service

183 days

Any foreign resident

No limit

Italy TY 2010 - Prior

Independent personal service: public entertainment

90 days

Any U.S. or foreign resident

$12,000 p.a.

17(1)

Italy TY 2010 - Prior

Teaching

2 years

U.S. educational institution

No limit

Italy TY 2010 - Prior

Studying and Training: Remittances or allowances

No limit

Any foreign resident

No limit

Malta TY 2010 - Prior

N/A

New Zealand TY 2010 - Prior

Independent personal service

183 days

Any contractor

No limit

New Zealand TY 2010 - Prior

Independent personal service: Public entertainment

183 days

Any contractor

$10,000

New Zealand TY 2010 - Prior

Dependent personal service

183 days

Any foreign resident

No limit

New Zealand TY 2010 - Prior

Dependent personal service: Public entertainment

183 days

Any foreign resident

$10,000

New Zealand TY 2010 - Prior

Studying and Training: Remittances or allowances

No limit

Any foreign resident

No limit

Exceptions & meaning →

IAT Letter 4087C Fill-in paragraphs¶

Mark the box for paragraph "#" on Form 13900 and clearly write the paragraph fill-in letter in the space provided.

Fill-in Letter

Literal

Form 1128 required for accounting period change

The tax return you submitted indicates you are changing your accounting period. Send us Form 1128, Application to Adopt, Change, or Retain a Tax Year, a copy of your application, or a statement relating to an application to change your accounting period. We are unable to process your return as submitted without this documentation or IRS authority.

IRC 965 Transition Tax Statement (Form 1040 and Form 1040-NR)

Internal Revenue Code (IRC) Section 965 Transition Tax Statement was either not attached or was incomplete. Send us a completed, signed IRC 965 Transition tax Statement to support the Section 965 claims on your tax return.

Disaster return with unsupported itemized deductions

Schedule A is incomplete or missing from your return. Complete the schedule with information that supports your entry for itemized deductions. If applicable, you must also submit any supporting forms for Schedule A, such as Form 4684.

EC 366, Employer and employee addresses in Puerto Rico (MeF)

Send us your Forms W-2, Wage and Tax Statement, used to support the amount of federal withholding on your tax return.

EC 265, U.S.-Canada Treaty Article XXV Missing Statement

You indicated on your Form 1040-NR that you are using the formula provided in Article XXV(3) of the U.S.-Canada Tax Treaty to compute your U.S. tax. Send us a hypothetical Form 1040 or similar statement reporting the worldwide and taxable income of you and your spouse as if you were both U.S. citizens, and showing how you calculated the amount reported as tax on your return.

Second Correspondence

Thank you for sending us the information we requested on your tax return for the period shown on page 1 of this letter. We still need more information to process your return. Please send us the information we’ve requested in this letter.

Exceptions & meaning →

IAT Letter 2894C/SP and 2894C Fill-in paragraphs¶

Mark the box for paragraph "0" on Form 13975 and clearly write the fill-in paragraph letter in the space provided.

Letter 2894C/SP (Form 1040-SS (sp))

Fill-in Letter

Literal (For English translation see Form 1040-SS table below)

Form 8959, Support of Medicare wages and withholding

Envienos una copia de sus Formularios W-2AS, W-2CM, W-2GU, W-2VI, y 499R-2/W-2PR para documentar las cantidades en Formulario 8959.

EC 094 - Married Filing Separately

Su planilla indicó el estado civil casado que radica por separado. Sin embargo, esta incluye ingreso que pertenecientes a su cónyuge. Envíenos la planilla contributiva corregida con solemente su ingreso. Si desea radicar conjuntamente, ambos cónyuges tienen que firmar para una planilla conjuntas.

Letter 2894C (Form 1040-SS)

Fill-in Letter

Literal

Form 8959 - Support of Medicare wages and withholding

Send us a copy of your Forms W-2AS, W-2CM, W-2GU, W-2VI, and 499R-2/W-2PR to document the amounts on Form 8959.

EC 094 - Married Filing Separately

Your return indicated a married filing separately filing status. However, it includes income belonging to your spouse. Submit a corrected tax return with only your income. If you wish to file jointly, both spouses must sign a joint return.

Exceptions & meaning →

Tax Forms and Internal Use Forms¶

The following is a list of tax forms and internal use forms referenced in this IRM.

Form

Title

Form 843

Claim for Refund and Request for Abatement

Form 1040

U.S. Individual Income Tax Return

Form 1040-SR

U.S. Tax Return for Seniors (TY 2019 and later)

Form 1040A

U.S. Individual Income Tax Return (TY 2017 and prior)

Form 1040EZ

Income Tax Return for Single and Joint Filers With No Dependents (TY 2017 and prior)

Form 1040-NR

U.S. Nonresident Alien Income Tax Return

Form 1040-SS (sp)

Spanish Version of Form 1040-SS

Form 1040-SS

U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico)

Form 1040-X

Amended U.S. Individual Income Tax Return

Form 1042-S

Foreign Person's U.S. Source Income Subject to Withholding

Form 2555

Foreign Earned Income

Form 2555-EZ

Foreign Earned Income Exclusion (TY 2018 and prior)

Form 3210

Document Transmittal (IRS) (internal use)

Form 3471

Edit Sheet (internal use)

Form 3531

Request for Signature or Missing Information to Complete Return

Form 3696-A

IDRS Correspondence Action Sheet (internal use)

Form 4227

Intra-SC Reject of Routing Slip (internal use)

Form 4563

Exclusion of Income for Bona Fide Residents of American Samoa

Form 5074

Allocation of Individual Income Tax To Guam or the Commonwealth of the Northern Mariana Islands

Form 6001

Letter 12C Correspondence Action Sheet (internal use)

Form 8288-A

Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests

Form 8689

Allocation of Individual Income Tax to the U.S. Virgin Islands

Form 8805

Foreign Partner's Information Statement of Section 1446 Withholding Tax

Form 8833

Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)

Form 8854

Initial and Annual Expatriation Statement

Form 9143

Request for Missing Information or Papers to Complete Return (International Returns)

Form 13900

Letter 4087C Correspondence Action Sheet International Returns (internal use)

Form 13975

Form 1040-SS (or Form 1040-SS (sp)) Correspondence Action Sheet (internal use)

Form 14653

Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures

Form 14654

Certification by U.S. Person Residing in the United States for Streamlined Domestic Offshore Procedures

Form 8288-A

Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests

Form W-2

Wage and Tax Statement

Letter 86C

Referring Taxpayer Inquiry/Forms to Another Office

Letter 513C

Foreign Student/Visitor FICA Claim; Employee's Letter

Letter 2894C

Returns Incomplete for Processing - Form 1040-SS

Letter 2894C/SP

Return Incomplete for Processing - Form 1040-SS - Spanish Version (Form 1040-SS (sp))

Letter 4087C

International Return Incomplete for Processing: Form 1040-NR, 1040, 1040A, 1040EZ

Schedule NEC

Tax on Income Not Effectively Connected with a U.S. Trade or Business (Form 1040-NR)

Schedule OI

Form 1040-NR Z (p. 2) Other Information

Exceptions & meaning →

Acronyms¶

The following is a list of acronyms used in this IRM.

Acronym

Term

Action Code

ACA

Affordable Care Act

AGI

Adjusted Gross Income

Accounts Management

APO/FPO

Army/Fleet Post Office

APTC

Advance Premium Tax Credit

American Samoa

ATIN

Adoption Taxpayer Identification Number

AUSC

Austin Submission Processing Service Center

AVS

ACA Verification Service

CARE

Computed Assisted Review of ERS

C&E

Code & Edit

CCC

Computer Condition Code

Criminal Investigation

CNMI

Commonwealth of the Northern Mariana Islands

CSPC

Cincinnati Submission Processing Center

CTC

Child Tax Credit

DLN

Document Locator Number

DOL

Department of Labor

DSI

Dependent Status Indicator

Error Code

EIC and EITC

Earned Income Tax Credit

ERS

Error Resolution System

FATCA

Foreign Account Tax Compliance Act

FIRPTA

Foreign Investment in Real Property Tax Act

FLC

Filing Location Code

Filing Status

FUTA

Federal Unemployment Tax Act

Guam

ICT

Image Control Team

IDRS

Integrated Data Retrieval System

IMF

Individual Master File (Form 1040 family)

IRC

Internal Revenue Code

IRM

Internal Revenue Manual

IRPTR

Information Returns Transcript File On Line

IRSN

IRS Number

ITIN

Individual Taxpayer Identification Number

KCSPC

Kansas City Submission Processing Center

LB&I

Large Business and International Division

MAGI

Modified Adjusted Gross Income

MeF

Modernized E-File

MFS

Married Filing Separately

NAP

National Accounts Profile

NRA

Nonresident Alien

ODC

Credit for Other Dependents

OVDP

Offshore Voluntary Disclosure Program

PBGC

Pension Benefit Guaranty Corporation

Puerto Rico

PTC

Premium Tax Credit

RIVO

Return Integrity and Verification Operations

RPC

Return Processing Code

RPD

Return Processed Date

RPI

U.S. Real Property Interests (on Form 6251)

RPP and RRSPS

Canadian Retirement or Pension Plan

RRB

Railroad Retirement Board

RRTA

Railroad Retirement Tax Amount

Self-Employment

SERP

Servicewide Electronic Research Program (website)

Submission Processing

SPC

Special Processing Code

SRP

Shared Responsibility Payment

SSA

Social Security Administration

SSN

Social Security Number

SSPND

Suspend Return with Action Code

SST

Social Security Tax

TIN

Taxpayer Identification Number

TPNC

Taxpayer Notice Code

Taxpayer Services

Tax Year

Unallowable Code

USCIS

United States Citizenship and Immigration Services

USVI

United States Virgin Islands

Uncollected Social Security and Medicare Tax on Wages

Exceptions & meaning →

Calculation Examples for EC 156¶

The following are examples of calculations of the Foreign Earned Income Exclusion using the steps in the instructions in EC 156 at IRM 3.22.3.147.2.

Step

Action

Taxpayer Y indicates on Form 2555 that they are excluding both foreign wages of $2,282 (line 19 of Form 2555) and business income. Schedule C line 7 is $194,579. Total foreign earned income (FEI) is equal to $196,861.

Form 2555, line 43 is $101,545. The Percentage for Allocation is 101,545/196,861, or 52%.

The taxpayer has no entries on Schedule 1 lines 11-25 of Form 1040.

Schedule C has expenses of $20,123 on line 28. Allocable expenses are .52 × $20,123, or $10,464.

The Total Foreign Earned Income Exclusion is $101,545 − $10,464, or $91,081. The taxpayer claimed an exclusion of $89,400, and so the calculated exclusion is greater than the taxpayer exclusion and no adjustment is required. Enter "C" in the Clear field.

Step

Action

Taxpayer Z indicates on Form 2555 that she is excluding both foreign wages and business income. Foreign wages are $45,900. Schedule C line 7 is $42,000. Total foreign earned income (FEI) is $87,900.

Form 2555, line 43 is $87,900. Percentage for Allocation is 87,900/87,900, or 100%.

The taxpayer has a deduction for Schedule SE on Schedule 1 line 15 of Form 1040 of $2,052, and 100% is deductible.

Schedule C has expenses of $8,828 (line 28) + $4,134 (line 30) =$12,962, and 100% is deductible.

Total Foreign Earned Income Exclusion is $87,900 − $2,052 − $12,962, or $72,886. The taxpayer claimed a total exclusion of $87,900. Since this is greater than the calculated exclusion, enter $72,886 in Field 3445, and adjust Field 04OTI with $72,886 as a negative amount.

Exceptions & meaning →

Return Due Date¶

This table displays the legal return due date by form for international individual income tax returns; the calendar Tax Year 2025 due date after adjustment for applicable weekend and holiday days; and the due date for tax returns edited with CCC N (see IRM 3.22.3.13, Late Filed Returns/Reasonable Cause).

Form

Doc Code

Legal Due Date After End of Taxable Year

Due Date TY 2025

CCC "N" Present

1040

All

15th day of fourth month

April 18, 2026

June 15, 2026

1040-SS (sp)

All

15th day of fourth month

April 18, 2026

June 15, 2026

1040-SS

All

15th day of fourth month

April 18, 2026

June 15, 2026

1040-NR

15th day of fourth month

April 18, 2026

not applicable

1040-NR

15th day of sixth month

June 15, 2026

not applicable

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Exceptions & meaning →

3.22.3 Individual Income Tax Returns¶

Manual Transmittal¶

Purpose¶

Material Changes¶

Effect on Other Documents¶

Audience¶

Effective Date¶

Program Scope and Objectives¶

Background¶

Authority¶

Roles and Responsibilities¶

Program Management and Review¶

Program Controls¶

Related Resources¶

Forms¶

Terms and Acronyms¶

Organization of Text¶

General Guidelines for Tax Examiners¶

Note:¶

Reminder:¶

International Returns¶

Note:¶

Note:¶

Exception:¶

Note:¶

Exception:¶

Note:¶

Caution:¶

Form 1042-S Income Codes¶

Note:¶

Exception:¶

Note:¶

Note:¶

Reminder:¶

Note:¶

United States Income Reporting Requirements¶

Note:¶

Dual-Status - General Information¶

Exception:¶

Streamlined Filing Compliance Procedures¶

Example:¶

Form 1040-NR, Form 1040-SS (sp), and Form 1040-SS Submitted Using the Streamlined…¶

Note:¶

Amended or Duplicate Returns Submitted Using the Streamlined Filing Compliance Procedures¶

Note:¶

Corresponding on Returns Submitted Using the Streamlined Filing Compliance Procedures¶

Note:¶

Types of Correspondence for Returns Submitted Using the Streamlined Filing Compliance…¶

Note:¶

Note:¶

Note:¶

Note:¶

Replies to Correspondence for Returns Submitted Using the Streamlined Filing Compliance…¶

Note:¶

Form 1040 With Form 2555 - Purpose of Form¶

Note:¶

Caution:¶

Note:¶

U.S. Territories - General Information¶

Note:¶

Exception:¶

The American Jobs Creation Act of 2004¶

Form 8898 - Statement for Individuals Who Begin or End Bona Fide Residence in a United…¶

American Samoa - General Information¶

American Samoa (AS) - Which Returns To File¶

Note:¶

Exception:¶

Exception:¶

Processing Form 1040 With Income or Address From American Samoa¶

Form 4563 - Exclusion of Income for Bona Fide Residents of American Samoa¶

Caution:¶

Commonwealth of the Northern Mariana Islands (CNMI) - General Information¶

Exception:¶

CNMI - Which Returns To File¶

Exception:¶

Note:¶

Processing Form 1040 With Income or Address From CNMI¶

Form 5074 - Allocation of Individual Income Tax to Guam or the Commonwealth of the…¶

Note:¶

Guam - General Information¶