Note:

When the prior year return has not been filed and isn't yet required, the penalties of perjury statement must address the applicant's residency status for both the prior year and the current year.

See IRM 21.8.4.2.1.3, Current Year Certification Applications.

Follow instructions in the chart below when a Status Code 508 or 509 is generated.

If status 508

Then verify that the correct tax year was entered, correct accordingly.

1. Correct tax year entered

Check FFINQ to see if return received.

2. Return received

Override 508, issue certification.

3. No return located

Reject the certification, no return filed.

If status 509

Then verify that the correct tax year was entered, correct accordingly.

1. Correct tax year entered

Check for spouse.

2. Spouse located

Check to see if return filed using filing status 2 for certification year.

3. Filing Status 2

Check to see if applicant identified as the spouse for the tax year of certification.

4. Applicant is spouse for the tax year of certification

Override status code 509, issue certification.

5. No spouse indicated

Reject application.

6. Spouse located but no filing

Reject application.

Once the applicant is verified as a U.S. resident, and therefore entitled to treaty benefits, issue the certification (status code 099). Certify using the proper IND.1040 certification paragraph:

IND.1040 for basic individuals

IND.1040.Dual for Dual Residents

IND.1040.GR for Greece

IND.1040.SP for Spain

IND.1040.RS for Russia

When no return has been filed (CFOL status code 012) and the Date of Birth (DOB) field on the entity indicates that the application is for a minor, issue letter 3426.

When an Individual Applicant (Resident Alien or U.S. citizen) appears to have a filing requirement but has not filed a U.S. tax return (CFOL status code 509), issue letter 3426. Letter 3426 requires one of the following:

Completion of the penalties of perjury statements in Section I and a signed copy of the return

Completion of the penalties of perjury statements in Section II and copies of income statements

A copy of the Form 8814 that was filed along with the parent name and TIN that filed the form, if applicant is a minor child