Section 261. Foreign Investment in Real Property Tax Act (FIRPTA)

3.21.261 Foreign Investment in Real Property Tax Act (FIRPTA)

Manual Transmittal

November 14, 2023

Purpose

(1) This transmits revised 3.21.261, International Returns and Document Analysis - Foreign Investment in Real Property Tax Act (FIRPTA).

Material Changes

(1) IRM 3.21.261.3.3 - Added new subsection for Identity Theft case procedures. (IPU 23U0819 issued 07-12-2023)

(2) IRM 3.21.261.5.1(2) - Updated TAS Service Level Agreements link. (IPU 23U0819 issued 07-12-2023)

(3) IRM 3.21.261.7(3) - Added references related taxpayer authentication in this subsection to improve visibility. (IPU 23U0720 issued 06-12-2023)

(4) IRM 3.21.261.8(3) - Removed Statute exception process. (IPU 23U0027 issued 01-03-2023)

(5) IRM 3.21.261.8(3) - Updated Statute exception process for processing year 2023. (IPU 23U0107 issued 01-17-2023)

(6) IRM 3.21.261.8.1(1) - Added new Computer Condition Code "G" processing procedures.

(7) 3.21.261.9(1) - Added reference to IRM 3.21.261.16.

(8) IRM 3.21.261.10(2) - Added subject matter experts can research for duplicate returns.

(9) IRM 3.21.261.10.1(1) - Updated references from Correspondence Imaging System to Correspondence Imaging Inventory. (IPU 23U0027 issued 01-03-2023)

(10) IRM 3.21.261.10.1(4) - Added instruction for processing Form 8288 when Form 8288-A is already processed. (IPU 23U0250 issued 02-08-2023)

(11) IRM 3.21.261.11.1(5) - Updated references from Correspondence Imaging System to Correspondence Imaging Inventory. (IPU 23U0027 issued 01-03-2023)

(12) IRM 3.21.261.11.2 - Removed paragraphs 2 through 9 as they don't apply to IRM 3.21.261.

(13) IRM 3.21.261.12 - Added instructions for identifying amended Form 8288 returns. (IPU 23U0250 issued 02-08-2023)

(14) IRM 3.21.261.12(1) - Added new Computer Condition Code G information.

(15) IRM 3.21.261.12(2) - Added new Computer Condition Code G editing instructions.

(16) IRM 3.21.261.13(3) - Added instructions to research Form 8288-B database if the withholding certificate received date is missing.

(17) IRM 3.21.261.13(5) - Removed redundant instructions because they already exist in other subsections.

(18) IRM 3.21.261.13.2 - Corrected Form 8288-C attachment procedures. (IPU 23U0250 issued 02-08-2023)

(19) IRM 3.21.261.13.2 - Update various routing instructions to match Form 8288 processing.

(20) IRM 3.21.261.14(3) - Updated instructions to complete approved Correspondence Action Sheet and attach to Form 8288.

(21) IRM 3.21.261.15.1(6) - Added guidance for responding to re-entry documents with procedural conflicts. (IPU 23U0539 issued 04-25-2023)

(22) IRM 3.21.261.15.2(5) - Added guidance for responding to reprocessing documents with procedural conflicts. (IPU 23U0539 issued 04-25-2023)

(23) IRM 3.21.261.16(4) - Updated references from Correspondence Imaging System to Correspondence Imaging Inventory. (IPU 23U0027 issued 01-03-2023)

(24) IRM 3.21.261.16(6) - Corrected procedures for circling out TAS and Chief Counsel received dates.

(25) IRM 3.21.261.17(1) - Added no computer condition codes needed for Form 8288 with only Part V completed.

(26) IRM 3.21.261.17(2) - Added Computer Condition Code G.

(27) IRM 3.21.261.17(5) - Added Computer Condition Code G information.

(28) IRM 3.21.261.18.2(1)(b) - Updated name control editing example to include estates and trusts.

(29) IRM 3.21.261.18.2(4) - Added missing Form 8288-C information. (IPU 23U0250 issued 02-08-2023)

(30) IRM 3.21.261.19(4) - Added reference to Exhibits 8 through 10.

(31) IRM 3.21.261.19.2(1) - Added missing line number to editing instructions. (IPU 23U0603 issued 05-08-2023)

(32) IRM 3.21.261.19.2(1) - Added instructions for default part number when none of the parts is filled out on Form 8288. (IPU 23U0250 issued 02-08-2023)

(33) IRM 3.21.261.19.2(2) - Added instruction for editing the part number on older Forms 8288. (IPU 23U0796 issued 07-03-2023)

(34) IRM 3.21.261.19.2(7) - Added instructions for when to edit Part I as the part number default and updated all figures to match editing instructions. (IPU 23U0250 issued 02-08-2023)

(35) 3.21.261.19.3 - Updated IRM subsection name to reflect the correct line number on Form 8288.

(36) 3.21.261.19.3(1) - Corrected editing instructions for using purple ink and for researching IDRS for established entities on Form 8288.

(37) IRM 3.21.261.19.3.1 - Updated IRM subsection name to reflect the correct line number on Form 8288.

(38) IRM 3.21.261.19.6 - Included Form 8288-C to the instructions. (IPU 23U0250 issued 02-08-2023)

(39) IRM 3.21.261.19.6(3) - Added reminder with references for proper taxpayer authentication. (IPU 23U0720 issued 06-12-2023)

(40) IRM 3.21.261.19.7- Added example for underlining the description on Line 2 of Form 8288.

(41) IRM 3.21.261.19.9(5) - Corrected instructions for updating the date of withholding certificate. (IPU 23U0250 issued 02-08-2023)

(42) IRM 3.21.261.19.9(9) - Added instruction to research Form 8288-B database for missing date of transfer. (IPU 23U0539 issued 04-25-2023)

(43) IRM 3.21.261.19.9(10) - Added reminder with references for proper taxpayer authentication. (IPU 23U0720 issued 06-12-2023)

(44) IRM 3.21.261.19.10(3) - Added instructions for processing Forms 8288 with Form 8288-A and 8288-C. (IPU 23U0250 issued 02-08-2023)

(45) IRM 3.21.261.19.11 - Added new editing instructions for Part 1, Part 2, and Part 3 of Form 8288. Deleted outdated editing instructions. (IPU 23U0250 issued 02-08-2023)

(46) IRM 3.21.261.19.11(3) - Correction instruction for editing the part number and included link to an additional exhibit. (IPU 23U0302 issued 02-24-2023)

(47) IRM 3.21.261.19.11(5-9) - Added notes with editing instructions for prior year returns.

(48) IRM 3.21.261.19.11(11) - Added reminder with references for proper taxpayer authentication. (IPU 23U0720 issued 06-12-2023)

(49) IRM 3.21.261.19.11(12) - Added reminder with references for proper taxpayer authentication. (IPU 23U0720 issued 06-12-2023)

(50) IRM 3.21.261.19.12 - Deleted paragraph 4 and corrected remaining caution statements to include clarification when the amount withheld is less than the withholding tax. (IPU 23U0250 issued 02-08-2023)

(51) IRM 3.21.261.19.12(1) - Corrected Form 8288 part number references.

(52) IRM 3.21.261.19.12(9) - Added reminder with references for proper taxpayer authentication. (IPU 23U0720 issued 06-12-2023)

(53) IRM 3.21.261.19.13(2) - Corrected reminder editing instructions.

(54) IRM 3.21.261.19.13(3) - Added instructions for what to do when an approved withholding certificate is attached to Form 8288 and Parts I, II or III were not filled out correctly.

(55) IRM 3.21.261.19.13(4-5) - Added IRM reference when editing the withholding tax percentage.

(56) IRM 3.21.261.19.13(5) - Removed obsolete editing instructions for Form 8288, Line 13. (IPU 23U0796 issued 07-03-2023)

(57) IRM 3.21.261.19.13(6) - Removed the last two rows from the table as they contained obsolete instructions.

(58) IRM 3.21.261.19.14(5) - Added IRM references and instructions not to send stamped Form 8288-A copy B when Part IV of Form 8288 is filled out.

(59) IRM 3.21.261.19.15 - Added instructions not to send stamped Form 8288-A copy B when Part IV of Form 8288 is filled out.

(60) IRM 3.21.261.19.16(3) - Added Bypass Indicator editing instructions for prior year forms and when to circle the Date of Withholding Certificate.

(61) IRM 3.21.261.19.16(4) - Updated Figure 3.21.261-8a and Figure 3.21.261-8b with Line 6 and Line 10 editing example. (IPU 23U0250 issued 02-08-2023)

(62) IRM 3.21.261.19.17(4) - Added a note with editing instructions when the amount realize is not equal to the correct tax withholding percentage.

(63) IRM 3.21.261.19.19(2) - Updated references from Correspondence Imaging System to Correspondence Imaging Inventory. (IPU 23U0027 issued 01-03-2023)

(64) Exhibit 3.21.261-1 - Updated with new editing instructions for transcription lines. (IPU 23U0250 issued 02-08-2023)

(65) Exhibit 3.21.261-8 - Updated with new editing instructions for transcription lines. (IPU 23U0250 issued 02-08-2023)

(66) Exhibit 3.21.261-9 - Updated with new editing instructions for transcription lines. (IPU 23U0250 issued 02-08-2023)

(67) Exhibit 3.21.261-10 - Updated with new editing instructions for transcription lines. (IPU 23U0250 issued 02-08-2023)

(68) The following changes were made throughout this IRM:

• Spelling, grammar, punctuation and formatting;
• Plain language and editorial updates to improve readability;
• Updated tax periods used for current processing;
• Reorganized IRM sections for clarity and to comply with Plain Language guidelines per the BMF consistency file;
• Updated IRM to add more detailed content per feedback from Chief Counsel.

Effect on Other Documents

IRM 3.21.261, dated November 15, 2022 (effective January 1, 2023), is superseded. This IRM incorporates the following IRM Procedural Updates (IPUs): IPU 23U0027 issued 01-03-2023, IPU 23U0107 issued 01-17-2023, IPU 23U0250 issued 02-08-2023, IPU 23U0302 issued 02-24-2023, IPU 23U0539 issued 04-25-2023, IPU 23U0603 issued 05-08-2023, IPU 23U0720 issued 06-12-2023, and IPU 23U0796 issued 07-03-2023.

Audience

Effective Date

James L. Fish
Director, Submission Processing
Wage and Investment Division

Program Scope and Objectives

1. Purpose: This Internal Revenue Manual (IRM) provides Code and Edit instructions for processing Form 8288, U.S. Withholding Tax Return for Certain Dispositions by Foreign Persons, to the Business Master File (BMF), with a Date of Transfer (DOT) of 12/13/2005 or later .

Note:

Another related resource is IRM 3.21.25, Miscellaneous Tax Returns which is used for processing Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons to the International Web Application (INTLWebApps) Database (Db) and verifying FIRPTA credits.

Background

1. Form 8288 is processed to the BMF under:

• File Location Code (FLC) 60 Ogden Submission Processing Campus (OSPC) or 98 Philadelphia Submission Processing Campus (PSPC)
• Tax Class 1
• Document Code 40
• Blocking Series 000-999
• Master File Tax (MFT) Code 17
• Program Code 1133X
• Function 210

Caution:

Form 8288 will have a "green rocker" placed under the payment amount. The payment amount is edited in green on the top right margin of Form 8288. Payments will be processed with a separate Document Locator Number (DLN) with Doc Code 17, 19, 70, or 76 and assigned a Trace Identification (ID) and Transaction Sequence Number. These numbers will be posted to Master File.

Note:

To identify these types of returns on prior year Forms 8288-A, the transferee will include the statement "Section 1446(f)(1) withholding" (or something similar) at the top of Forms 8288 and Forms 8288-A.

Form 8288 Background

1. The Foreign Investment in Real Property Tax Act (FIRPTA) of 1980 was amended by the Deficit Reduction Act of 1984. This amendment added Section 1445 to Chapter 3, Subchapter A, of the Internal Revenue Code (IRC) of 1954. Section 1445 requires the withholding of tax on dispositions of certain U.S. Real Property Interests (USRPI) by a foreign seller.
2. IRC 897 of the Code (enacted under the 1980 FIRPTA legislation) provides rules for the taxation of nonresident alien individuals and foreign corporations on sales or other dispositions of U.S. real property interests (including installment sales, exchanges, foreclosures, and deeds in lieu of foreclosure of U.S. real property interests). In addition, Regulated Investment Companies (RICs) and Real Estate Investment Trusts (REITs) with foreign investors are subject to the FIRPTA rules under IRC 1445 and IRC 897.
3. FIRPTA applies to what it defines as a U.S. real property interest under IRC 897(c), which includes:

• Any interest in real property located in the United States or the Virgin Islands (including an interest in land or improvements thereon, a mine, well, or other natural deposit).
• Certain personal property associated with the use of real property.
• Any interest, other than solely as a creditor, in any domestic corporation, unless the taxpayer can show the corporation is not a U.S. real property holding corporation during the previous five years (or during the period in which the transferor (seller) held the interest, if shorter).

• The payment of the tax, and
• The payment of any applicable penalties and interest.

Note:

For post February 16, 2016 dispositions, where a property is acquired by the transferee for use by the transferee as a residence and the amount realized by the foreign transferor is more than $300,000, but does not exceed $1,000,000, the withholding agent generally must withhold and remit to the IRS 10 percent of the amount indicated in Line 6, Part I of Form 8288.

Note:

The transferee can pay a lesser amount if they received an approved Withholding Certificate (W/H Cert) from the Internal Revenue Service (IRS). A copy of the W/H Cert must be attached to Form 8288, and an entry must be present on either Line 6, Part I or Line 10, Part II. Otherwise, the tax must be 10 percent, 15 percent, or 21 percent (35 percent for dispositions prior to January 1, 2018). However, in the case of an IRC 1446(f)(1) disposition (Form 8288, Line 13, Part III), the transferee can pay a lesser amount without an approved Withholding Certificate (W/H Cert). Prior year returns include the statement "Section 1446(f)(1) withholding" (or something similar) at the top of Forms 8288 and Forms 8288-A.

• Foreign Corporation
• Domestic Corporation
• Domestic or Foreign Partnership
• Trustee of Domestic or Foreign Trust
• Executor of Domestic or Foreign Estate

Reminder:

If you correct the Date of Transfer (DOT) on Form 8288, then you must correct the Date of Transfer (DOT) on Form 8288-A.

Caution:

In the case of an IRC 1446(f)(1) disposition (Form 8288, Part III), the transferee can pay a lesser amount without providing an approved Withholding Certificate (W/H Cert) to the IRS at the time of processing. However, unlike IRC 1445 returns with Withholding Certificates, IRC 1446(f)(1) returns do not have a Date of Withholding Certificate. These are still due on or before the 20th day from the DOT.

Note:

Cases like this will generally be resolved by the Cincinnati and Ogden Accounts Management area via correspondence and duplicate filing condition processing.

• The withholding agent will allocate the amount realized from the transfer among the transferors based on their capital contribution to the property. For this purpose, a husband and wife are treated as having contributed 50% each.
• The withholding agent will withhold on the total amount allocated to foreign transferors.
• The withholding agent will credit the amount withheld among the foreign transferors as they mutually agree. The transferors must request the withholding be credited as agreed upon by the 10th day after the date of transfer. If no agreement is reached, the withholding agent will credit the withholding by evenly dividing it among the foreign transferors.

Note:

If there is any indication the withholding agent did not properly allocate amount realized or amount withheld, see IRM 3.21.261.19.11 (9) for more information.

Note:

To identify these types of returns on prior year Form 8288-A, the transferee will include the statement "Section 1446(f)(1) withholding" (or something similar) at the top of both Form 8288 and Form 8288-A. For current year returns, the transferee (buyer) will complete Part III of Form 8288.

Form 8288-A Background

1. Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons, are filed on a transaction-by-transaction basis and attached to Form 8288. Two copies (Copy A and B) of Form 8288-A are to be attached to Form 8288 for each transferor (seller). Because each Form 8288 reflects only one specific transaction, only Forms 8288-A related to each transaction should be submitted. If more than one Form 8288-A reflecting a separate transaction is submitted with one Form 8288, correspond for the missing Forms 8288.

Note:

In general, a foreign person is a nonresident alien individual, foreign corporation, foreign partnership, foreign trust, or foreign estate, but not a resident alien individual.

1. Stamp the incoming Batch work (Form 2345, Batch Transmittal) with their "FIRPTA" stamp.
2. Assign the Batch work to a FIRPTA tax examiner who will populate the Form 8288-A FIRPTA database with each foreign transferor(s) (seller) Copy A information, which will be used later to perform the credit verification using Form 13698, International Credit(s) Verification Slip.

Note:

Refer to IRM 3.21.25, Miscellaneous Tax Returns for instructions on recording Form 8288-A to the Form 8288-A Information Return Master File (IRMF) FIRPTA Database, even if the Form 8288-A is not attached because a record must be entered prior to releasing the batch work to ISRP.

Example:

Form 1120-F (U.S. Income Tax Return of a Foreign Corporation), Form 8804, (Annual Return for Partnership Withholding Tax (IRC 1446) or Form 1040-NR Fiduciary with a Form 8288-A needs to be credit verified.

Form 8288-C Background

1. Form 8288-C, Statement of Withholding Under Section 1446(f)(4) (for Withholding on Dispositions by Foreign Persons of Partnerships Interests), is filed on a transaction-by-transaction basis and attached to Form 8288 in situations where transferee (buyer) did not withhold the 10 percent withholding tax under IRC 1446(f)(1).
2. Under IRC section 1446(f)(4), if the transferee (buyer) fails to withhold any amounts required, the partnership must deduct and withhold from distributions the amount the buyer failed to withhold (plus interest). These distribution payment amounts and other relevant information are reported on Form 8288-C.

Note:

Form 8288-C is required when Form 8288, Part 4 is filled out. If missing correspond with Letter 3104, CAS.

Authority

1. Internal Revenue Code 1445 and IRC 897 regulations provide the authority for withholding of tax on dispositions of certain U.S. Real Property Interests (USRPI) by a foreign seller and taxation of nonresident alien individuals and foreign corporations on sales or other dispositions of U.S. real property interests.
2. New IRC 1446(f) was added by section 13501 of the Tax Cuts and Jobs Act, P.L. 115-97, which was enacted on December 22, 2017. Section 13501 of the Act also added new section 864(c)(8). On April 2, 2018, the Department of the Treasury and the Internal Revenue Service released Notice 2018-29, 2018-16 I.R.B. 495, which provides temporary guidance under IRC 1446(f) regarding the disposition of a partnership interest that is not publicly traded. It also and announced an intent to issue regulations under IRC 1446(f) regarding the disposition of a partnership interest that is publicly traded and not publicly traded. IRS and Treasury issued proposed regulations under new IRC 1446(f) on May 13, 2019, and final regulations on November 30, 2020, which apply to transfers occurring on or after January 29, 2021.
3. Policy statements for Submission Processing are contained in IRM 1.2.12, Service Wide Policies and Authorities, Policy Statements for Submission Processing Activities.

Responsibilities

1. The Director, SP Office is responsible for monitoring operational performance for the Submission Processing campus.
2. The Operations Manager is responsible for monitoring operational performance for their operation.
3. The team manager/lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.
4. The team employees must follow the instructions in this IRM and maintain updated IRM procedures.

Program Objectives and Review

1. Program Goals: Code & Edit is tasked with timely and accurately reviewing and editing all paper returns.
2. Program Reports: The Monitoring Section under Submission Processing Program Management /Process Assurance monitors the inventory and timely processing of the returns.
3. Program Effectiveness: The program goals are measured by the following reviews:

• Embedded Quality Submission Processing (EQSP)
• Balanced Measures
• Managerial reviews

Terms/Definitions/Acronyms

1. Acronyms and a glossary of terms can be found in Exhibit 3.21.261-12.

Related Resources

1. The following job aids have been developed to assist tax examiners in their work:

• BMF Name Control Job Aid, Document 7071-A, Catalog Number 38048K.
• Coding and Editing BMF Tax Returns, Foreign Addresses, Document 2324-002, Catalog Number 62293V.

♦IRM Deviation Procedures♦

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

♦Business Master File (BMF) Consistency♦

1. The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Code and Edit processing IRMs.
2. Ogden, Kansas City, and Paper Processing Branch, BMF Code and Edit and Error Resolution System (ERS) identified and developed topics for BMF Consistency.
3. A ♦ (diamond) before and after the subsection title shows BMF Consistency subsections.
4. Text in normal print is the common processes for BMF returns. The text in BOLD print is form specific and applies to this IRM only.

♦Criminal Investigation (CI) Referral♦

1. Criminal Investigation (CI) investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC include willful attempts to evade or defeat the income tax. Criminal tax violations also include the willful failure to collect or pay over tax and false claims for refunds based on bogus return information.
2. If CI has stamped the return, do not send for further CI action.
3. For returns with refund claims ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, do the following:

1. Make a copy of the first two pages of the tax return along with any page of the return that appears suspicious.
2. Attach Form 4227, Intra-SC Reject or Routing Slip, to the copy.
3. Route the copy to Ogden, Mail Stop 9001, Criminal Investigation (CI).
4. Edit an action trail "Copy to CI" , or "CI Referral" , or similar language in the lower left corner going vertically up the side of the return.
5. Edit Action Code 341 or CCC "U" (whichever is applicable) on the return.
6. Continue processing the return.

1. Make a copy of the first two pages of the tax return along with any page of the return that appears suspicious.
2. Attach Form 4227, Intra-SC Reject or Routing Slip, to the copy.
3. Route the copy as shown in the table below.

♦Examination (Exam) "Funny Box" ♦

1. The primary goal in identifying tax returns for examination is to promote the highest degree of voluntary compliance. Examination gives support and helps Submission Processing (SP) with any questionable return found during processing. Exam has a vast multitude of programs and tolerance criteria already found in several IRM sections. SP can refer any questionable return to Exam, unless prohibited by instructions currently found in several IRMs.

♦Business Master File (BMF) Identity (ID) Theft♦

1. BMF ID Theft is increasing. If a case is found with attachments or correspondence showing the taxpayer is a victim of "ID Theft" , give the entire case to the manager/lead.
2. The manager/lead will expedite the case to the Planning and Analysis (P&A) staff for referral to one of the Submission Processing (SP) BMF ID Theft liaisons. The taxpayer must show that they are a victim of "ID Theft" ; do not send cases that are subject to Criminal Investigation (CI), Examination (Exam), or Fraud review.

♦IRS Employee Contacts♦

1. The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 RRA 98 Section 3705(a), gives identification requirements for all IRS employees working tax-related matters.
2. All IRS employees who communicate by telephone, correspondence, or face-to-face, with taxpayers or their personal representatives on tax-related matters must give (at a minimum) the following information:

1. Telephone Contact - Their title (e.g., Mr., Mrs., Ms., Miss), last name and badge identification (ID Card) number. Toll-free employees may also give their location for identification purposes. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information
2. Face-to-Face Contact - Their title (e.g., Mr., Mrs., Ms., Miss), give as appropriate during the conversation, their last name and badge identification (ID Card) number.
3. Correspondence (sent to the taxpayer and authorized representatives) - A telephone number taxpayers can call for answers to questions. In addition, manually generated correspondence must have the employee’s title (e.g., Mr., Mrs., Ms., Miss), last name, Integrated Data Retrieval System (IDRS) number, and letter system number, which are systemically generated by IDRS. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.
4. Correspondex letters - Specific employee name and telephone number if the employee initiating the correspondence is in the best position to respond to any questions the taxpayer may have or if the taxpayer is being asked to give more case-related information. If the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

♦Taxpayer Advocate Service (TAS)♦

1. The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate. Its job is to protect taxpayers’ rights by striving to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights (TBOR). TAS offers free help to taxpayers, including when taxpayers face financial difficulties due to an IRS problem, when they are unable to resolve tax problems they haven’t been able to resolve on their own, or when they need assistance to address an IRS system, process, or procedure that is not functioning as it should. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.
2. TAS uses Form 12412, Operations Assistance Request (OAR), to start the OAR process of referring a case to the Wage and Investment (W&I) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19, TAS Operations Assistance Request (OAR) Process.
3. Refer taxpayers to TAS when the contact meets TAS criteria or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps can’t be taken to resolve the taxpayer's issue the same day.
4. The definition of "same day resolution" is within 24 hours. The following two situations meet the definition of "same day resolution" :

• The issue can be resolved within 24 hours.
• IRS takes steps within 24 hours to resolve the taxpayer’s issue.

♦TAS Service Level Agreements (SLAs)♦

1. The National Taxpayer Advocate reached agreements with the Commissioners of the Wage and Investment (W&I) Division, Small Business Self/Employed (SB/SE) Division, Tax Exempt Government Entities (TE/GE) Division, Criminal Investigation (CI), Appeals, and Large Business and International (LB&I) that outline the procedures and responsibilities for the processing of Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs).
2. The SLAs are found at https://irsgov.sharepoint.com/sites/TAS/SitePages/SLA.aspx.

♦Use of FAX for Taxpayer Submissions♦

1. Taxpayers may send tax return information via fax as part of return perfection even when submitting a signature. In circumstances where contact with the taxpayer was made and documented, faxed signatures are acceptable .
2. Contact the taxpayer by telephone or correspondence. Follow local procedures to decide which method of contact to use.
3. Indicate the fax paragraph on the approved Correspondence Action Sheet to inform the taxpayer of the fax options.
4. Use the following resources to make sure you are speaking with the taxpayer or authorized representative before disclosing any tax information:

• IRM 21.1.3.2.3, Required Taxpayer Authentication.
• IRM 21.1.3.2.4, Additional Taxpayer Authentication.

• IRM 10.5.1.6.7.2, Answering Machine or Voicemail.
• IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance.

General Disclosure Guidelines

1. IRC 6103 establishes the taxpayer's (T/P's) right to privacy of tax information. You must provide correct information to the correct T/P or authorized representative (check IDRS CC CFINK for Power of Attorney - POA).
2. Taxpayer returns and return information must remain confidential as provided for in IRC 6103, Confidentiality and disclosure of returns and return information. IRC 7431 provides civil damages for unauthorized disclosure of returns and return information. IRC 7213 and IRC 7213A provides criminal penalties for unauthorized disclosure or unauthorized inspection of returns and return information and requires employees be discharged from duty if charged and convicted of these offenses.
3. When calling a taxpayer or authorized representative, and before disclosing any tax information, follow IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication. Before leaving any messages on a taxpayer’s answering machine, review IRM 10.5.1.6.7.2, Answering Machine or Voicemail and IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance.
4. For more information on General Disclosure Guidelines refer to IRM 21.1.3, Operational Guidelines Overview, and for full discussions refer to IRM 11.3.1, Introduction to Disclosure through IRM 11.3.40, Disclosures Involving Trust Fund Recovery Penalty Assessments.

♦Statute Returns♦

1. Any return with a Received Date two years and nine months or more after the Return Due Date is a potential statute control return.
2. Route Statute returns to the Statute Control Unit daily or more often if needed.

Note:

Exception:

If the return has already been cleared by Statute Control, edit Computer Condition Code (CCC) "W" and continue processing. However, if the statute clearance date shows a date cleared more than 90 days earlier, send return to Statute Control function for clearance.

• Compliance IRC 6020(b) returns.
• Secured by Examination/Collections, secured by TEGE, secured by TEGE Employee Plan (EP) Exam.
• Returns with Transaction Code (TC) 59X or "ICS" (Integrated Collection System) notated on the face of the return.
• Returns showing "substitute returns prepared by Examination (SFR)" in top margin of the return.
• Returns with a stamp indicating a previous clearance by Statute Control within the last 90 days.
• Return is a 2019 and prior year original. Due to the COVID-19 pandemic and subsequent Submission Processing (SP) and Accounts Management (AM) site closures, SP and AM developed procedures to bypass AM statute clearance and be processed. In addition, any 2019 and prior year returns previously cleared by AM statute will not be returned by SP to AM to be cleared again if the 90-calendar day statute stamp has expired.

Note:

If the return is within 90 days of the statute expiration date, advise the TAS employee of such and route the return directly to Statute Control for clearance.

1. Edit CCC "U" .
2. Leave the return in the batch and continue processing.

1. Do not continue processing and edit CCC "U" .
2. Pull the return from the batch.
3. Attach Form 4227, lntra-SC Reject or Routing Slip, and route to Statute Control Unit.

• Assessment Statute Expiration Date (ASED): Return filed timely - three years from the Return Due Date (RDD) or three years from approved extended due date; Returns filed late - three years after the return was filed; No return filed - assessment may occur at any time. See IRC 6501(a) and (c)(3).
• Refund Statute Expiration Date (RSED): three years from the time the return was filed or, if later, two years from the date after the tax was paid. See IRC 6511(a) and IRC 6511(b)(2)(A).
• Collection Statute Expiration Date (CSED) is generally 10 years from the 23-C date or 10 years from the date of the Transaction Code (TC) 29X or 30X adjustment. See IRC 6502(a).

Note:

Exceptions may apply to change the periods of limitations.

• IRC 6501 (c) (1) - False Return
• IRC 6501 (c) (4) - Extensions by Agreement
• IRC 6501 (b) (3) - Substitute for Return by Authority of IRC 6020(b)

Caution:

IRC 6020(b) is not a tax return that triggers the period of limitations on assessment under IRC 6501(a). If the taxpayer subsequently files a return reporting an additional liability, that return constitutes an original tax return allowing for the assessment of any additional amount not already assessed under the Substitute for Return program and triggering the running of the period of limitations on assessment for the tax year.

♦Protective Claims♦

1. Remove returns marked as "Protective Claim" , "Protective Claim for Refund," or similar statement from the batch and route to Accounts Management (AM). Notate "Protective Claim" in the remarks box of Form 4227, Intra-SC Reject or Routing Slip.
   Internal Revenue Service
   Attn: BMF INTL AM Dept. - 3-L08.154
   2970 Market St.
   Philadelphia, PA 19104

Notate "Protective Claim" in the remarks box of Form 4227.

Exception:

If the Form 8288 return is amended, do not remove from batch. Edit Computer Condition Code "G." and follow normal processing procedures.

Delinquent Returns

1. A return is normally delinquent if it is not received on or before the Return Due Date (RDD). However, accept the return as timely filed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. See IRM 3.10.72, Receiving, Extracting and Sorting, IRM 3.10.73, Batching and Numbering, and IRM 3.21.261.16 .
2. Accept a return as timely if:

1. The return was mailed in time to reach the Service through normal handling within the legal period but,
2. Through no fault of the taxpayer, it was not delivered.

Note:

Beginning after February 19, 2016, taxpayers must use the revised mailing address provided in the updated regulations. However, the IRS will not assert penalties against taxpayers that use the old mailing address previously specified in the regulations, which is an obsolete mailing address at the Philadelphia Service Center, on or before June 20, 2016. Consider a return timely if it appears the return was previously mailed to the old Philadelphia Service Center address on or before June 20, 2016.

Note:

Beginning January 1, 2018, if any forms were required to be filed, or amounts due, under IRC 1446(f) on or before May 31, 2018, no penalties or interest will be asserted if these forms were filed with, and such amounts were paid over to the IRS on or before May 31, 2018. Accept as timely filed if Form 8288 was received more than 20 days after the DOT and was received on or before May 31, 2018. See IRM 3.21.261.17 (5) for more information on accepting these returns as timely filed.

• The postmark date stamped on the envelope as the date of delivery.

Note:

If the postmark date falls on or before the prescribed date for filing the return, then consider the return timely and edit the timely postmark date in MMDDYYYY format.

1. Detach the reasonable cause explanation correspondence from the return.
2. Complete Form 3499, Informational Transmittal, and forward to Philadelphia Accounts Management Campus (PAMC), BMF International unit, Building Locator Number (BLN) 3-L08.154. In the remarks area write Process attached Reasonable Cause Correspondence.
3. Prepare correspondence action sheet for IDRS Letter 1382C (Penalty Removal Request Incomplete) (use paragraphs "A and S" ) and assign it to a clerk for input to IDRS or follow local procedures. It may or may not include the Rejects function.

Note:

♦Compliance Secured/Prepared Returns♦

1. Compliance functions secure returns from the taxpayer and prepare returns if the taxpayer does not provide them.
2. Compliance notates:

1. Prepared tax returns with "6020(b)" or "SFR" (Substitute for Return).
2. Secured tax returns with "TC 59X" or "ICS" or "Process as Original" with a Form 13133, Expedite Processing Cycle, attached with the "Delinquent Return" box checked.

Note:

If "RD" (Return Delinquency) is notated on the front of the return and not circled , remove from the batch and route to Collections.

♦IRC 6020(b) - Prepared by Collection♦

1. When the taxpayer doesn’t file a required return, IRC 6020(b) is the authority for the IRS to prepare the return.
2. These returns are identified by the notation: "PREPARED AND SIGNED UNDER THE AUTHORITY OF SECTION 6020(b) OF THE INTERNAL REVENUE CODE" which is in the center bottom of Page one of the return.

1. Returns must have a Received Date. If no Received Date is present per the Compliance Function, follow the normal procedures for editing the Received Date.
2. Compliance Function representatives must sign returns. If not signed, route to Compliance using Form 4227, Intra-SC Reject or Routing Slip.

Note:

Note:

Note:

Do not edit CCC "D" if the return due date is after July 30, 1996 (without regard to extensions) even if the Compliance Function representative notates "DO NOT ASSESS FAILURE TO PAY PENALTY" .

♦Collection Secured♦

1. These returns are identified by the notations: "TC 59X" or "ICS" .

1. Do Not edit CCC "G" on these returns.
2. Use approved Correspondence Action Sheet to correspond for conditions that are unprocessable (e.g., missing signatures, missing schedules, etc.).
3. Edit CCC "W" if the received date is more than two years and nine months after the Return Due Date (RDD). Do Not send the return to Statute Control. See IRM 3.21.261.17 , Computer Condition Codes (CCC) – Form 8288.

♦Examination Prepared♦

1. These returns are identified by the notation: "SFR" or "SUBSTITUTE FOR RETURN" on Page one.

1. Return must have a Received Date. If no Received Date is present, follow the normal procedures for editing the Received Date.
2. Do Not correspond with the taxpayer for unprocessable conditions. If the return is completely unprocessable, use No Reply procedures and edit CCC "3" and continue processing.
3. If Form 13133, Expedite Processing Cycle , is attached, edit the Computer Condition Codes that are checked on the form.

Note:

♦Examination Secured♦

1. These returns are identified by the notation: "Process as Original" on Page one of the return with a Form 13133, Expedite Processing Cycle, attached with the "Delinquent Return" box checked.

1. Do not edit CCC G on these returns.
2. Use approved Correspondence Action Sheet to correspond for unprocessable conditions.(E.g., missing signatures, missing schedules, etc.)
3. Edit the Computer Condition Code(s) that are checked on Form 13133.

Note:

Reminder:

If Form 13133 (or something similar) indicates penalties require suppression, edit the proper Computer Condition Code(s). Please refer to IRM 3.21.261.17 , Computer Condition Codes (CCC) – Form 8288, for more information.

♦Frivolous Arguments♦

1. Businesses use frivolous arguments for expressing dissatisfaction with the substance, form or administration of the tax laws by trying to illegally avoid or reduce tax liabilities. See IRM 25.25.10, Frivolous Arguments, and Exhibit 3.21.261-6 , Potential Frivolous Arguments for Examination Review.
2. Review the return to determine whether it appears to be a frivolous return.

Exception:

If the return shows CCC "U" or Action Code 331 and has a Form 4227, Intra-SC Reject or Routing Slip, attached with the remarks, "Refer to Exam FRP for audit after processing" , continue to next procedure.

• Returns that have only zeros, blanks, or no entries.
• Returns showing "None" , "Not Liable" , etc.
• Returns showing no evidence of a frivolous argument.

♦Issuing Correspondence♦

1. Issue correspondence to resolve any conditions causing the return to be unworkable or unprocessable.

Exception:

Do not correspond on returns prepared by Collections, Section 6020(b) or by Examination, "Substitute for Return (SFR)" .

• A one-page return, with or without a signature.
• Incomplete returns indicating "Payment Only" .
• Incomplete returns indicating they have previously e-filed.

Note:

This list is not all inclusive. Tax examiners may see other unusual documents not addressed in this subsection or in other areas of the IRM.

1. Complete an approved Correspondence Action Sheet indicating the Letter number (86C, 854C, etc.), Master File Tax (MFT), and the correct paragraphs.

Note:

Some paragraphs may require fill-ins to enter, such as, tax period, form number, Document Locator Number (DLN), etc.

1. Complete an approved Correspondence Action Sheet indicating the Letter number (86C, 854C, etc.), Master File Tax (MFT), and the correct paragraphs.

Note:

Note:

There are more campus exclusive letters. They are for processing specific forms or conditions. Go to the lead or manager for copies of these letters.

♦Correspondence Imaging Inventory (CII)♦

1. Correspondence Imaging Inventory (CII) is an inventory system for scanning all Account Management (AM) receipts into digital images and working the cases from those images.
2. "CII" returns show a "CII Image-Do not correspond for Signature" stamped below the signature line or a "CII" annotation on the front of the return.
3. Verify all edit marks on a "CII" return.

1. Processed
2. IDRS shows Form 8288 posted
3. IDRS does not show Form 8288 posted

1. Found in the INTLWebApps database,
2. it is in the correct tax period,

Note:

If it is not in the correct tax period, then place a Form 3465 (Adjustment Request) on the 8288 CII return and return it to PAMC with a note saying "Resolve mixed tax period"

1. Research IDRS for posting of the document.
2. Make a print of the IDRS screen to attach to the front of the 8288 CII return for association with the original return in files. However, prior to making the print, type the word "ATTACHMENT" on the IDRS screen. After printing, highlight the word "ATTACHMENT" along with the DLN receiving the attachment and send it on its way to files.
3. Continue with normal processing of the Form 8288. Ensure the Form 8288 CII return is numbered with the same DLN as the Form 8288-A records from the INTLWebApps database, and send it to files to be associated with the related Forms 8288-A.

1. Not previously processed to the INTLWebApps database,
2. Not previously processed to the INTLWebApps database,

1. Continue with normal processing, which includes processing the 8288-A record in the INTLWebApps database.
2. Process the 8288-A record in the INTLWebApps database (Refer to IRM 3.21.25, International Returns and Documents Analysis - Miscellaneous Tax Returns for instructions). In addition, make a print of the IDRS screen to attach to the front of the 8288 CII return for association with the original return in files. However, prior to making the print, type the word "ATTACHMENT" on the IDRS screen. After printing, highlight the word "ATTACHMENT" along with the DLN receiving the attachment and send it on its way to files.

Note:

If Form 8288-A is not attached, correspond for the documents using IDRS letter 3104C (FIRPTA and Foreign Partnership Withholding Tax Return Processing and Unsubstantiated Refundable Cr).

1. Do not correspond.
2. Remove the return from the batch and route to AM.
3. If the return comes back from AM with the information still incomplete, send the return to AM again to secure all the missing information. Indicate "More information needed to process incomplete CII return," or similar language on Form 4227, Intra-SC Reject or Routing Slip (or other proper routing slip).

General Editing Guidelines

1. The following general information can be used when editing Form 8288 returns.
2. General instructions eliminate repetition of the same instructions for each return. If the general instructions and the specific instructions conflict, follow the specific instructions.
3. All money amounts must be entered in dollars and cents .
4. Money amounts are positive.
5. Do not bracket negative amounts.
6. Beginning with Tax Year Ending 12/31/2005 Form 8288 are processed as BMF Returns (Programs 11330 and 11338).
7. If a Form 8288 with a date of transfer of 12/12/2005 and prior is submitted by the taxpayer, do not process it through the BMF.

Rejection Action:

1. Edit CCC "U."
2. Prepare Form 4227, Intra-SC Reject or Routing Slip with the following reason in the remarks area; " NMF 8288 return DOT 12/12/2005 and prior - Transship to KCSPC " and staple it to the face of the document.
3. Continue editing the entire return, but do not enter Form 8288-A in the database.

Note:

Rejects or Unpostables will transship the return to KCSPC.

♦Edit Marks♦

1. Edit marks are edited on the return for transcription to the Automated Data Processing (ADP) System through Integrated Submission and Remittance Processing (ISRP) system. Enter edit marks in brown, red, orange, purple, or green pencil or pen.
2. Only edit items on the return that are for transcription except where specific instructions require editing of a non-transcribed item. Leave lines blank if the entry would be a zero amount unless otherwise instructed.
3. Do not obliterate, alter, or erase the original entry on a return when deleting or correcting an entry. Always exercise care to ensure the original entry remains legible. Perfected entries provide a legible "edit trail" for anyone who may work with the return later.
4. Do not re-edit edit marks entered by other areas, such as Collections, Entity or Accounts Management, except to place the marks in the correct area or perfect for legibility.

Exception:

Note:

Note:

Use a double arrow to identify the same figure for transcription in two different places (along with any required transcription data between the two arrows).

Note:

Code and Edit (C&E) is no longer required to bracket negative amounts when brackets are preprinted on the form or schedule or when the taxpayer clearly indicates a negative amount with brackets () or "-" sign. Bracket negative amounts when editing negative entries on transcription lines (i.e., computing and entering a line entry, entering a missing line entry, etc.)

♦Action Codes♦

1. Action Codes are used to indicate whether correspondence, research or some other action is needed. The Action Code sets the suspense period for the return and places the return in the workable or unworkable suspense inventory.

Note:

Amended Returns

1. Beginning on January 1, 2024, the Computer Condition Code (CCC) "G" will be valid for the Form 8288 program. An amended return may be identified by a check mark on the corrected return checkbox located on the top right corner of Form 8288 or by such words as "CORRECTED" or "SUPPLEMENTAL." Filing a "Copy" of a return is not sufficient reason to label a return "Amended" unless accompanied by a positive statement from the taxpayer.

Note:

• Name Control
• EIN
• Tax period (YYYYMM)
• Received Date (YYYYMMDD)
• Computer Condition Code G
• Signature

Form 8288 Attachments

1. Examine all attachments to the return being processed and take action as required by the attachment.

Note:

Form 8288 is used to transmit Form 8288-A to the IRS. Form 8288-A must be recorded in the International Web Application (INTLWebApps) Database by the FIRPTA unit. Therefore, if the attached Form 8288-A does not have the FIRPTA stamp "Copy B Mailed" on it, then most likely Form 8288-A has not been recorded in the INTLWebApps Data Base.

Note:

Form 8288 is also used to transmit Form 8288-C to the IRS. Form 8288-C must also be recorded in the International Web Application (INTLWebApps) Database by the FIRPTA unit.

Example:

If Form 8822, Change of Address, is attached to Form 8288, follow the instructions in the "Routing Guide for Attachments."

Reminder:

Before routing Form 8822 verify the change of address on Form 8822 appear on Form 8288, Lines 1c and 1d, and on the set of Forms 8288-A and Forms 8288-C. If not, then edit the correct address on Form 8288, Forms 8288-A, and Form 8288-C.

• This document will only be attached to Form 8288 when the transferee (buyer) withholds less than the required 10, 15 or 21 percent (35 percent for dispositions prior to January 1, 2018) FIRPTA tax. The taxpayer must check either Line 7c of Part I, or Line 11d of Part II (or have an entry greater than Zero on older Forms 8288 revised before February 2017), of Form 8288 to indicate reduced withholding.

Note:

There is no specific type of withholding certificate issued by the IRS for IRC 1446(f) withholding at this time. Instead, a transferor may provide the transferee a certification it qualifies for treaty benefits. This may be provided to support a claim it is entirely excepted from withholding. In addition, the transferee may submit the certificate as part of certifying its maximum tax liability under Regulations section 1.1446-2(c)(4). In both cases, the treaty certification must be submitted to the IRS, as described in IRM 3.21.261.18 (3). However, the transferee (buyer) can pay a lesser amount without an approved withholding certificate from the IRS. These Form 8288 returns will have Part III filled out. For prior year returns, these will include the statement "Section 1446(f)(1) withholding" (or something similar) at the top of Forms 8288 and Forms 8288-A. The taxpayer will need to include a check mark in Line 14b of Part III.

Caution:

Except for approved withholding certificates show no tax is due or owed, send a photocopy of the withholding certificate to your local Planning and Analysis (P&A) analyst anytime the received date on the approved withholding certificate is more than 7 days after the Date of Transfer (DOT). Continue process as normal. The P&A analyst will refer document to Accounts Management for further action. Normally, for an approved withholding certificate to be valid, the request for a reduced withholding certificate must be submitted prior to the DOT or mailed (postmarked) no later than the DOT. If withholding certificate does not show the received date, research the Form 8288-B database for this information.

• any Form 8288-A (unless it is a Copy B) document, or
• any withholding certificate, appearing in the table below.

Form W-7 or Form W-7 (SP) , Application for IRS Individual Taxpayer Identification Number. This document may or may not be attached to Form 8288.

Note:

Once the ITIN is assigned, AUSPC will notate the ITIN number on the copy of Form 8288 and fax or mail the ITIN edited Form 8288 back to OSPC for continued processing.

Unrelated Attachments

1. Requests for adjustment of another return:

1. Remove any attachment requesting an adjustment (Automated Data Processing (ADP) or non-ADP).
2. Forward to the BMF International Philadelphia Accounts Management (PAM) Department for action.
   Internal Revenue Service
   Attn: BMF INTL AM Dept. - 3-L08.154
   2970 Market St.
   Philadelphia, PA 19104
3. lMPORTANT : Leave an " Action Trail " on the Form 8288, notating the attachments removed from the Form 8288.

1. If other requests are involved, photocopy the correspondence and send the copy to PAM (See IRM 3.21.261.13.1 (1b)) for action, and send the original Form 2848 or Form 8821 to Ogden's Centralized Authorization File (CAF) function for processing.
2. If other requests are not involved, send the original correspondence and the authorization to the Campus CAF function for processing.

1. Remove other unrelated attachments (such as other returns, acknowledgments, requests for tax forms, etc.) from the document being processed, and
2. Route to the proper function for necessary action.

• Name and address of the taxpayer
• Taxpayer Identification Number
• Received Date
• Tax Period and type of document from which detached
• Action required to be taken

1. Photocopy the attachment.
2. Attach it to the Form 8288.
3. Leave an " Action Trail " .
4. Route the attachment to the proper function.

♦Routing Guide for Attachments♦

1. Review all attachments to the return before the return can be considered processable.

1. Only detach attachments when specifically instructed.

Note:

Consider a return or document an "original" if it has an original signature or stamped "Process as Original" .

• Taxpayer disagrees they are required to file the return.
• Only page one of the return is attached.
• Employer Identification Number (EIN) on notice does not match EIN on return.
• Return requested on notice not the same as return submitted.
• Taxpayer asking question(s) or requesting IRS to act on their account.
• Case involves any other IRS action(s) C&E not trained to complete.

Then, Route to Compliance Services Collection Operations (CSCO). Use return address on Computer Paragraph (CP) notice:

• Brookhaven - Stop Number 662
• Memphis - Stop Number 81
• Philadelphia - 4-N31.142

If none of the above apply, correspondence or written response to the notice is not attached and/or, "599" is notated:

1. Move the notice to the back of the return.
2. Continue processing the return.

Note:

If the return is unsigned, but the taxpayer has signed the CP notice under the jurat, it is not necessary to correspond for the signature.

1. Pull CP 504 to the front.
2. Route notice and return to Accounts Management.

• Taxpayer disagrees they are required to file the return.
• Only page one of the return is attached.
• EIN on notice does not match EIN on return.
• Return requested on notice not the same as return submitted.
• Taxpayer asking question(s) or requesting IRS take action(s) on their account.
• Case involves any other IRS action(s) C&E not trained to complete.

• Brookhaven - Stop Number 662
• Memphis - Stop Number 81
• Philadelphia - 4-N31.142

If none of the above apply, correspondence or written response to the notice is not attached and/or, "599" is notated:

1. Move the notice to the back of the return.
2. Continue processing the return.

Note:

If the return is unsigned, but the taxpayer has signed the CP notice under the jurat, it is not necessary to correspond for the signature.

1. Identify which organization initiated the letter to the taxpayer (e.g., what organization signed the letter?).
2. Route letters initiated by Accounts Management (AM) to Accounts Maintenance Research (AMRH):

• Ogden - Mail Stop 6712
• Kansas City - Mail Stop N2 6800

1. If correspondence is attached or taxpayer’s response indicates any of the following:

• Taxpayer disagrees they are required to file the return.
• Only page one of the return is attached.
• EIN on letter does not match EIN on return.
• Return requested on letter not the same as return submitted.
• Taxpayer asking question(s) or requesting IRS take action(s) on their account.
• Case involves any other IRS action(s) C&E not trained to complete.

• Brookhaven - Stop Number 662
• Memphis - Stop Number 81
• Philadelphia - 4-N31.142

Note:

If the return is unsigned, but the taxpayer has signed the letter under the jurat, it is not necessary to correspond for the signature.

• Numbered returns route to Rejects
• Unnumbered returns, prepare a dummy return if possible: otherwise correspond

1. Edit Received Date to the detached return.
2. Route to proper function unless specifically directed otherwise.

Exception:

Note:

Do not edit an action trail when detaching a petition.

1. Send Letter 1382C, Penalty Removal Request Incomplete. See IRM 3.21.261.9 (6).
2. Continue editing the return.

1. Photocopy any data necessary to process the return
2. Attach the photocopy to the return.
3. Route original attachment to the proper office for necessary action.

1. Prepare Form 3465, Adjustment Request, and:

1. Indicate in the Routing box "Rejects."
2. Notate "See attached money transfer request" in the Remarks Box.

Yes - Correspondence notates transfer of money FROM the return you are processing:

1. Edit CCC "X" to freeze overpayment.
2. Detach transfer request.
3. Prepare Form 3465, Adjustment Request, to route the request to Philadelphia Accounts Management. See IRM 3.21.261.13.1 (1b.)

1. Indicate in the Routing box "Adjustments."
2. Notate the requested action in the "Remarks Box."

1. Prepare Form 4190, Order Tax Forms and Publications.
2. Forward to National Distribution Center (NDC) for processing.

If requesting prior year forms:

1. Prepare Form 6112, Prior Year Tax Products Order Form.
2. Forward to National Distribution Center (NDC) for processing.

Note:

• Route Form 3949 according to page 2 of Form 3949 to CI, Exam, Disclosure, etc. following local procedures.
• Continue processing the return.

• Route Form 3949-A to R&C.
• Continue processing the return.

• Route Form 3949-A to Ogden Service Center.
• Continue processing the return.

If Ogden or Kansas City receives a Form SS-4, Application for an Employer Identification Number and Form 14039-B, route the returns to:
Internal Revenue Service
Ogden BMF Entity
Mail Stop 6273
Ogden, UT 84201.
For the following returns:

• Loose Form 14039-B.
• No correspondence attached (e.g., no IRS CP notice or IRS letter).
• The envelope is not addressed to a specific function.

Note:

Along with all the documentation attached to it (i.e., passport, birth certificate, etc.)

Reminder:

Also, annotate the number of forms detached.

Exception:

Do not detach if Form W-7 is a copy and the taxpayer already has an ITIN.

Note:

Use the address above for internal mail and those packages being sent overnight express to the ITIN Unit. If a telephone number is required for the overnight package provide 512- 460-7948.

Unprocessable Conditions

1. A return must have the following specific items before it is considered processable. If they are not present and cannot be found on the return or its attachments, then edit CCC "U" to send case to Rejects. Rejects will research IDRS, to locate the information to make the return processable.

• An Employer Identification Number (EIN), Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN) or Internal Revenue Service Number (IRSN). See IRM 3.21.261.18.3 and IRM 3.21.261.19.3 for more information.
• A legible name (for the Name Control).
• A valid Tax Period (200512 and subsequent).

• The name is so illegible or incomplete that the Name Control cannot be determined.
• The EIN has other than nine numeric characters and cannot be perfected from information on the return or attachments.
• The document has more than one ElN.
• The filer has stated they have combined information for more than one tax period or more than one type of return.
• Data entries are so incomplete or illegible that they cannot be perfected or transcribed.
• The document is mis-blocked.
• The return is unsigned.
• The return has only entity data and no other statements or attachments from the taxpayer.
• Any condition set forth as unprocessable in the sections on processing specific documents.

Pre-Master File Processing of Form 8288

1. Numbered Form 8288: Reject any numbered Form 8288 return which has a Date of Transfer (DOT) of 12/12/2005 or prior.

Rejection Action:

1. Edit CCC "U."
2. Prepare Form 4227, Intra-SC Reject or Routing Slip with the following reason in the remarks area; "NMF 8288 return DOT 12/12/2005 and prior" . Transship to Kansas City Submission Processing Campus (KCSPC) Non-Master File (NMF) Accounting and staple it to the face of the document.
3. Continue editing the entire return, but do not enter Form 8288-A into the INTLWebApps.

Note:

Transshipping Action:

1. Prepare Form 3210, Document Transmittal and write "NMF 8288 return DOT 12/12/2005 and prior" in the remarks section of the transmittal. Address the document transmittal to:

♦Re-Entry Document Procedures♦

1. Reprocess a return posted to the wrong account or module to post it to the correct account module.
2. Some re-entry returns may have originally been filed electronically (E-File). These returns may be identified by the presence of Mod E-File printouts in lieu of the actual return. Do not correspond for missing signatures on these documents.
3. Each re-entry return must have a Form 3893, Re-Entry Document Control, or Form 13596, Reprocessing Returns, attached.

• Form 3893 is used to reinput documents that have not posted to an account or module.
• Form 13596 is used to reprocess documents to the correct account or module that had previously posted to the wrong account or module.

Caution:

If the IRS Received Date is two years and nine months or more after the Return Due Date, refer to Statute Control procedures before re-entering or reprocessing the return.

1. Edit CCC "U" on return.
2. Route to Receipt and Control using Form 4227.
3. Use local procedures for routing.

Caution:

If the Received Date is two years and nine months or more after the Return Due Date, refer to Statute Control procedures before re-entering or reprocessing the return.

1. Enter CCC "U" (Unprocessable) on the return.
2. Forward Form 3696 to Typing and Suspense to issue letter and filing in the "Hold File" or follow local correspondence procedures .

♦Form 3893 - Re-Entry Document Control♦

1. Form 3893, Re-entry Document Control, is used to reinput a return that has not posted to an account or module.
2. If more than one return is in the batch and only the top Form 3893 has an entry in Box 1 (Alpha/Numeric block control no.), edit all returns using current processing instructions and keep all returns clipped together.
3. Circle the CCC "G" if present.
4. Do not edit CCC "G" on amended returns.
5. Do not send Letter 1382C, Penalty Removal Request Incomplete , if a request for reasonable cause is attached.
6. If the return is not edited according to current processing instructions, circle any Action Codes, Computer Condition Codes and any other edit marks no longer applicable. Re-edit according to current processing instructions.

Exception:

When the return cannot be processed because current processing instructions do not apply, complete Form 4227 noting the reason why the return is not processable and return to initiator.

1. Circle out any Green Rockered or green checked money amounts and edit marks indicating a receipt of remittance.
2. Do not change any tax due amounts.

♦Form 13596 - Reprocessing Returns♦

1. Form 13596, Reprocessing Returns, is used to reprocess a return to the correct account or module that had previously posted to the wrong account or module.
2. Circle CCC "G" if present.
3. Do not edit CCC "G" on amended returns.
4. Do not send Letter 1382C, Penalty Removal Request Incomplete , if a request for reasonable cause is attached, because this responsibility belongs to the customer service representative initiating the re-entry document.
5. If the return is not edited according to current processing instructions circle any Action Codes, Computer Condition Codes and other edit marks no longer applicable. Re-edit according to current processing instructions.

Exception:

When the return cannot be processed because current processing instructions do not apply, complete Form 4227 noting the reason why the return is not processable and return to initiator.

1. Edit CCC "R" if the "FTF" box is checked.
2. Edit CCC "D" if the "FTP" box is checked.

♦Received Date♦

1. The date a document is received in the Campus or IRS Office is the date stamped as the "IRS Received Date."
2. All Form 8288 returns require an IRS Received Date.

Note:

• U.S. Postal Service,
• Private Delivery Services, e.g., Federal Express Corporation (FedEx) or United Parcel Service (UPS), "designated" by the IRS. See IRM 3.10.72, Receiving, Extracting, and Sorting, for a list of designated private delivery services, or
• Returns with a Foreign Postmark.

Caution:

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

Note:

For certified mail only - If a postmark is not present, look for a "USPS.com Track & Confirm" record attached to the return (should be in front of the envelope). Use the "Acceptance" date on the record to determine timeliness and follow normal editing procedures. If the "USPS.com Track & Confirm" record is not attached, take no action.

• The word "Received"
• Month (alpha or numeric)
• Day (for example "1" or "01" )
• Year - four digits
• "Area Office" , Campus, "Field Office" , "Taxpayer Assistance (TAC)" Site plus the "City" location or a functional area within one of these sites (e.g., Compliance Services Collection Operations (CSCO), Examination, Image Control Team (ICT), Correspondence Imaging Inventory (CII), Accounts Management (AM), etc.)

Exception:

Not all IRS offices are designated places for filing, and not all IRS employees are authorized to accept a tax return for processing. If a return contains a received date stamp from other than a Taxpayer Assistance Center (TAC), Lockbox, or IRS campus (Compliance, Accounts Management (AM), or Submission Processing (SP)), circle out the invalid received date and edit the correct received date according to instructions below. For example, returns received by the Taxpayer Advocate Service (TAS) or the IRS Office of Chief Counsel are not properly filed and a received date by that office is not the IRS Received Date .

Editing Received Date when MissingThe purpose of this figure is to show how to edit the IRS received date on a current Form 8288 when there is none present on the return. The IRS received date is edited on Line 2, last row, right side, in MMDDYYYY format. The name of Line 2 Form 8288 is Description and location of the U.S. real property interest acquired, transferred or distributed, or description of transferred partnership interest.In this figure the received date is taken from the taxpayer signature line.The DLN 00140-010-00016-4 is on the top right corner of page 1 of 8288.Line 1a name is Ash Hickory at the top of page 1.Line 1b TIN is 00-2345678.Line 1c street address is 678 Trout St.Line 1d city, town and ZIP is Boise, ID 83708.Line 1e phone number is blank.Line 2 description reads 10,000 shares Class A preferred stock XYZ Corp.The IRS received date is edited on Line 2, almost last row, near the middle, as 01042024.The taxpayer’s signature Ash Hickory appears in the signature line, at the bottom of page 2.The signature date of 01/04/24 appears in the date line, located at the end of the signature line on page 2.

1. The earliest legible Postmark Date (U.S. Postal Service, foreign postmark or Private Delivery Service) on the envelope. Rules for using the U.S. Postal Service Postmark (USPS) or foreign postmark date are as follows:

1. Use the earliest IRS Received Date stamped on the return.
2. Circle out all other dates.

Note:

Treat Received Dates that a circled out by another function as if they are not present.

Reminder:

Check any envelope attached to the return for remittance. If found, hand carry remittance to manager.

Caution:

Computer Condition Codes (CCC) – Form 8288

1. An entry is required in the CCC field. See paragraph (9) below.

Exception:

Note:

1. Detach the correspondence from the return.
2. Forward the correspondence to Ogden Accounts Management (use local procedures).
3. Prepare correspondence action sheet for IDRS Letter 1382C (use paragraphs "A" , "N" and "V" ).
4. Continue processing the return.

Note:

Edit CCC "D" if the FTP box on Form 13596 is checked.

1. Detach the correspondence from the return.
2. Forward the correspondence to Philadelphia Accounts Management (use local procedures).
3. Prepare correspondence action sheet for IDRS Letter 1382C (use paragraphs "A" , "N" and "V" ).
4. Continue processing the return.

Note:

Edit CCC "R" if the FTF box on Form 13596 is checked.

Exception:

Beginning January 1, 2018, with respect to any forms that were required to be filed, or amounts that were due, under IRC 1446(f) on or before May 31, 2018, no penalties or interest will be asserted if these forms are filed with, and such amounts are paid over to the IRS on or before May 31, 2018. Edit a CCC “R” if the return was filed and amounts paid on or before May 31, 2018.

Caution:

Editing Form 8288

1. Use the following instructions when editing the described fields in subsequent sections.
2. "EXCEPTION:" For IRC 1445(a) and 1445(e) withholding, the Transferee (buyer) is not required to withhold or mail in a Form 8288 or Form 8288-A, if any of the following applies:

• "Purchase of a Residence for $300,000.00 or less."
  One or more individuals acquire a U.S. real property interest (USRPI) for use as a residence and the amount realized (sales price) is not more than $300,000. A USRPI is acquired for use as a residence if the transferee (buyer) or a member of the transferee's family has definite plans to reside in the property for at least 50 percent of the number of days the property is used by any person during each of the first two 12-month periods following the date of transfer. Do not consider the number of days the property will be vacant in making this determination.

Reminder:

This exception applies whether or not the transferor (seller) is an individual, partnership, trust, corporation, or other transferor.

Caution:

This exception does not apply if the actual transferee (buyer) is not an individual, even if the property is acquired for an individual.

Caution:

Caution:

If possible, the transferee (buyer) must withhold 10% of the amount realized from any consideration that remains to be paid. The transferee must do this by withholding and paying over the entire amount of each successive payment of consideration until the full 10% is withheld and paid to the IRS. These amounts must be reported and transmitted to the IRS by the 20th day following the date of each payment.

Note:

No particular form is required for this notice. By the 20th day after the date of transfer, you must send a copy of the notice of nonrecognition (with a cover letter giving your name, address, and identification number) to the:
Ogden Service Center
P.O. Box 409101
Ogden, UT 84409.

Example:

The property is transferred as a gift and the recipient (transferee/buyer) does not assume any liabilities or furnish any other consideration to the transferor (seller).

Caution:

• Transferee receives a certification the transferor (seller) is not a foreign person.
• Transferee receives a certification of no realized gain.
• Transferee receives a certification that transferor had less than 25 percent effectively connected taxable income in three prior taxable years.
• Transferee receives a certification from partnership of less than 25 percent effectively connected gain under section 864(c)(8).
• Transferee receives a certification of nonrecognition transaction.

Note:

If the transferor receives one of these certifications, it is not required to withhold or mail in a Form 8288 or Form 8288-A. None of these certifications need be submitted to the IRS. For the specific rules for the requirements for each certification, see the Notice.

• Transferee (buyer) receives a certification of non-foreign status,
• Transferee receives a certification of no realized gain.
• Transferee receives a certification from partnership of less than 10 percent effectively connected gain under Section 864(c)(8).
• Transferee receives a certification from the transferor (seller) of less than 10 percent effectively connected income.
• Transferee receives a certification from the transferor of nonrecognition transaction.
• Transferee receives a certification from the transferor an income tax treaty applies.
• Except for the income tax treaty exception, if the transferor receives one of these certifications, it is not required to withhold or mail in a Form 8288 or Form 8288-A. For the specific rules for the requirements for each certification, see the regulations.
• Section 1446(f)(1) income tax treaty certification. A transferee may rely on a certification from the transferor that states the transferor is not subject to tax on any gain from the transfer pursuant to an income tax treaty in effect between the United States and a foreign country if the requirements of this paragraph (b)(7) are met. The transferor makes the certification on a withholding certificate (on a Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), or Form W-8BEN-E, Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities)) meets the requirements for validity under 1.1446-1(c)(2)(iv) (or an applicable substitute form meets the requirements under 1.1446-1(c)(5)) and that contains the information necessary to support the claim for treaty benefits. A transferee may rely on a certification of treaty benefits only if, within 30 days after the date of the transfer, the transferee mails a copy of the certification to the Internal Revenue Service, at the address provided in 1.1445-1(g)(10), together with a cover letter providing the name, TIN, and address of the transferee and the partnership in which an interest was transferred.

1. Pull the document (Form 8288 or Form 8288-A) from the batch.
2. If the document is numbered, have the DLN cancelled. Line through the cancelled DLN in red. Make sure the DLN is removed from the Service Center Control File (SCCF).
3. If the document is not numbered, take the document and place a red "X" on the entire page, including any Forms 8288-A or attached correspondence. Destroy the document by following your local "Classified Waste" procedures.

Reminder:

Do not enter the Form 8288-A into the INTLWebApps Database or correspond for missing information, specifically a TIN number, when the transferee (buyer) discloses to the IRS no withholding is required.

Dates

1. Use the following formats when editing dates:

• MMDDYYYY for Received Dates
• MMDDYYYY for Date Of Transfer (DOT)
• MMDDYYYY for Date Of Withholding Certificate
• MMDDYYYY for Date Of Distribution
• YYYYMM for Tax Periods

Example:

Note:

Transcription under this program is permitted ONLY for those Form 8288 returns containing a "Date Of Transfer (line 3)" of December 13, 2005, and subsequent.

Entity Perfection - Name Control - Line 1a

1. The name control consists of the first four characters of the transferee’s (buyers) last name, or the first four characters of the business entity name.

1. Valid characters are alpha, numeric, ampersand (&), hyphen (-) and blank. However, blanks are only valid in the last three positions. Blanks are valid only at the end of the name control.
2. Disregard the word "THE" in the Name Control only when followed by more than one word.

Note:

If an individual and a trade name are present and it can be determined the trade name is for a corporation or partnership, follow the Name Control procedures for corporations or partnerships. If other than a corporation or partnership, follow the Name Control procedures for individuals, regardless of which line the individual owner’s name is listed.

Example:

The business name is The Green Parrot, underline the name control Gree . However, if the business entity name is The Flamingo , underline the name control TheF because the word THE was followed by one word and not more than one word. With regards with estates or trusts, Joe Wren Trust , name control is WREN . Trust for Jane Sparrow , The name control is SPAR . Special Needs Trust FBO Tiger Salmon , name control is SALM .

Reminder:

Refer to the Name Control Job Aid, Document 7071, Name Control Job Aid for Individual Master File (IMF) Taxpayers and Document 7071A, BMF Name Control Job Aid - For Use Outside of the Entry Area for further guidance.

1. Research IDRS.
2. If found, edit to the proper location.
3. If not found, route to Entity Control following local procedures.

1. Edit CCC "U"
2. Prepare Form 4227 addressed to Entity Control Unit (ECU). Route to ECU.

Note:

Research IDRS to see if the payment posted to the title company EIN account. If it did, then photocopy Form 8288 and any pertinent attachment. Prepare Form 3465 and staple it to the photocopied documents. Write on Form 3465 instructions for Philadelphia Accounts Management Campus (PAMC) to transfer the FIRPTA payment from the title company account, to the actual transferee (buyer) TIN account.

Caution:

To prevent disclosure of Personally Identifiable Information (PII), the withholding agent's SSN must be redacted prior to mailing copy B. No redaction of EIN is required.

Taxpayer Identifying Numbers

1. Entries in this field may be either,

• Employer Identification Number (EIN) (entered in NN-NNNNNNN format).
• Social Security Number (SSN) (entered in NNN-NN-NNNN format).
• Individual Taxpayer Identification Number (ITIN) (entered in 9NN-NN-NNNN format with fourth- and fifth-digit middle numbers ranging in between 70-88, 90-92, 94-99)
• Internal Revenue Service Number (IRSN) (entered in 9NN-NN-NNNN* format with valid fourth and fifth-digit ranges of 02, 04, 05, 06, 07, 08, 09, 10, 17, 18, 19, 28, 29, 37, 38, 39, 49, and 89; (e.g., 9NN-05–NNNN* (PSPC) 9NN-04–NNNN* (OSPC)).

Note:

For an IRSN to be valid the TIN in fourth and fifth positions need to include "01" , "03" , "11" , "16" , "40" .

Reminder:

Route the return to the BMF Entity unit on a Form 4227 if it doesn't have an SSN, ITIN or IRSN on Line 1b, so Entity can establish the entity with TC 000. In the remarks area write: "Please establish the SSN, ITIN or IRSN number on the BMF via TC 000 for MFT 17." If TC 000 is edited on the return (orange ink), then it has already been established.

1. Edit or perfect the first TIN entered, and
2. Circle out the second or subsequent TIN(s) and the name(s) associated to the second or subsequent TIN.

Note:

If both an SSN and EIN are present, use the SSN and the individual entity’s name associated with the SSN for transcription, unless the entity name is a business name, then use the EIN. Depending on the TIN you select, circle out the other TIN and name associated with it.

Example:

Oak Tiger Advertising, Marlin Puma and Petunia Serval with TINs 000-00-5226, 900-00-0002, 00-5236855. IDRS research shows 00-5236855 belongs to Oak Tiger Advertising, therefore circle out 000-00-5226 and 900-00-0002, and circle out Marlin Puma and Petunia Serval.

♦Entity Perfection - "In Care of" Name♦ Line 1a

1. An "in-care-of" name can be identified by the words "in care of" or the symbols "c/o" or "%" (percent).
2. Ensure the "in-care-of" name is located above the street address.

1. Arrow the "in-care-of" name above the street address.
2. Continue editing the return.

1. Arrow the "in-care-of" street address below the "in-care-of" name or edit the in-care-of street address below the "in-care-of" name if located on an attachment.
2. Circle the transferee (buyer) street address.
3. Continue editing the return.

Note:

Always circle out the "in-care-of" symbol ("%" or "c/o" ) if it is present with an address. Do not use the ampersand (&) and the percent sign (%) when editing address information.

• A check mark in the "Name Change" box, or
• A check mark in the "Address Change" box, or
• Taxpayer edits or added to the "in-care-of" name (e.g., original "in-care-of" name crossed out, new name added, etc.).

1. Edit the "in-care-of" name as shown above.
2. Continue editing the return.

1. Edit the "in-care-of" name as shown above.
2. Correct the address.
3. Continue editing the return.

General Address Perfection

1. Both domestic (U.S.) and foreign addresses should include:

• The street number
• The street name
• Any proper room or suite designation (i.e., "Suite 2000" )
• The City, State, and Zip Code (for domestic addresses)
• If a foreign address, see IRM 3.21.261.18.7 (6).

1. Ensure a house or building number is present. Do not accept a building name in place of the numeric designation. Research for the correct address.
2. Always edit the suite, apartment number, room number, etc. at the end of the street address line.
3. If present, always edit the street suffix, such as street, drive, lane, terrace, etc.
4. If present always edit the directional information, such as North, South, East, West, etc.

Note:

Use the proper abbreviations when necessary. See Document 7475 (State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries)

Note:

♦Entity Perfection - Domestic Addresses♦ Lines 1c and 1d

1. Perfect the address when the mailing address (Street or P.O. Box) is not easily identified.

Exception:

• Mailing address information is the same,
• Form 8822 or Form 8822-B, Line 7, does not list a location address,
• No entry on Form 8822-B, Lines 8 or 9,

• Mailing address information is different,
• Form 8822 or Form 8822-B, Line 7, lists a location address,
• Form 8822-B, Lines 8 or 9, have an entry,

1. Circle out the P.O. Box.
2. Underline the street address.

1. Circle out the first street address.
2. Underline the second street address.

1. Circle out the street address.
2. Underline the P.O. Box.

Note:

Edit the three digits followed by "01" of the first zip code listed for the applicable state (e.g., "99501" for Alaska).

Note:

Always circle out the "in-care-of" symbol ("c/o" or "%" ) if it is present with an address. Do not use the ampersand (&) and the percent symbol (%) when editing address information.

♦Entity Perfection of Foreign Address♦

1. This is a 35-character field. Valid characters are alpha (a-z) and numeric (0-9).
2. A foreign (international) address is any address that is not in the 50 states, the District of Columbia or any of the U.S. Possessions.
3. Consider returns with Army Post Office (APO)/Diplomatic Post Office (DPO)/Fleet Post Office (FPO) addresses as domestic addresses. See IRM 3.21.261.18.6, Entity Perfection - Domestic Address.
4. Route returns with a foreign address to Ogden Submission Processing Campus (OSPC) for processing. Prepare Letter 86C, Referring Taxpayer Inquiry/Forms to Another Office, to inform the taxpayer IRS sent the return to Ogden.
5. Consider returns with addresses in the following U.S. Possessions as foreign addresses for processing purposes. Edit the same way as domestic addresses.

1. Edit a two-character alpha code on Line 1d for the Possession/Territory name.

1. Ensure the foreign country is the last entry in the address.
2. Circle out the foreign country and edit the country code preceded by a "/" and followed by "/$" (e.g., "/GM/$" is edited for Germany). See Document 7475, State and Addresses Abbreviations, Major City Codes (MCC), ZIP Codes and Countries, for official foreign Country Codes.
3. Edit a unique country code for returns filed with an address in Canada. See IRM 3.21.261.18.7.1 Foreign Address - Canada Only.

Note:

Coding and Editing BMF Tax Returns, Foreign Addresses Job Aid (Number 2324–002) provides examples for editing foreign addresses.

Note:

There may be other countries with provinces, states, and territories not listed above, see Coding and Editing BMF Tax Returns, Foreign Addresses Job Aid (Number 2324-002) for more information.

1. Circle out province, state or territory name.
2. Edit the correct abbreviation. See Exhibit 3.21.261-13 Province, Foreign State, and Territory Abbreviations

♦Country Code – Canada♦

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

1. See table below to ensure the correct Canadian Province/Territory abbreviation is present or edited to the return.
2. Circle the country name.
3. Edit the correct country code based on the province/territory preceded by a "/" and followed by a "/$" as the last entry in the address.

1. Circle the country name.
2. Edit the country code "/CA/$" as the last entry in the address.

Figure 3.21.261-2

City

1. This is a 22-position field for which an entry must be present.
2. The valid characters are alpha (a-z).
3. Research the ZIP Code directory to determine the city and/or state if:

• The address is a U.S. address.
• The city and/or state is missing or incomplete.

1. Circle out the name of the province.
2. Edit the two-position alpha abbreviation at the end of the city field.
3. A two-position alpha code must be present for Canadian addresses.

State

1. A state must be present for all U.S. addresses.
2. Valid characters are alpha (a-z).
3. If the State name is spelled out, do not edit the two-digit state code. ISRP will enter the two-digit state code.
4. If the address is a foreign address ISRP will automatically enter a period blank in the state field.

Note:

If an entry, other than a state or province is present in the state field, then arrow it to its proper placement. If undetermined, circle it out.

Note:

ZIP Code

1. These are 12-position fields for which entries must be present for U.S. addresses.
2. The valid characters are alpha (a-z) and numeric (0-9).
3. The U.S. ZIP Code must have at least five and may have up to twelve characters.
4. If the address is a U.S. address and the ZIP Code is missing or incomplete,

1. Research the ZIP Code Directory.
2. Edit the correct ZIP Code.

Amounts

1. These are 12-position fields for which entries may or may not be present.
2. Valid characters are numeric (0-9) or blank.
3. Entries must be zero or a significant entry. No negatives are allowed.
4. Entries are to be transcribed in dollars and cents.

♦Foreign Currency♦

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

Processing Form 8288, U.S. Withholding Tax Return for Certain Dispositions by Foreign Persons

1. The following subsections are to be used in the editing of Form 8288.
2. Form 8288 is a two-page income tax return. It is considered the transmittal page to Form 8288-A and Form 8288-C.
3. See IRM 3.21.261.1.
4. Refer to Exhibits 3.21.261-8 through 10 for converting line numbers for prior year revisions of Form 8288 to the most current revision.

Editing the Tax Period for Form 8288

1. The tax period for a Form 8288 is based on the Month and Year of the Date of Transfer, found on Line 3. Therefore, if the Date of Transfer is 02/05/2024, then the tax period will be 202402. See IRM 3.21.261.19.9 (6).
2. Edit the proper tax period in accordance with the Date of Transfer . Editing is required on EVERY RETURN.

Caution:

When processing Form 8288 deposits the "Date of Transfer" is used to determine the tax period, as well as distinguish a NMF Form 8288 from a BMF Form 8288. When processing a prior year return (tax period prior to January 1, 2023), review Form 8288 for a possible withholding certificate. When a withholding certificate is attached, edit the Withholding Certificate notice date between Line 3 and Line 4 (Part I or II) of Form 8288. This edited Date of Transfer will be used to calculate the due date of the return.

Reminder:

The same transferee (buyer) withholding agent may file one or more Form 8288 in a month, or in every month of the year.

Caution:

Form 8288 is due to the IRS by the 20th day after the date of transfer, or, by the 20th day after the date on the withholding certificate, whether it is approved or denied.

Editing the Tax PeriodThis figure illustrates the editing of the tax period on a current Form 8288. (Rev. January 2023) The tax period is derived from the Date of Transfer, located on Line 3. The following entries appear in this figure; The Date of Transfer (DOT) and the Tax Period. The DLN in the top right corner of Form 8288 is 00140-346-000-16-4.The tax period is edited to the right of the tax form title appearing at the top of the page. The tax period is written in YYYYMM format. The edited tax period reads 202412.Line 1a name is Sarah Raven.Line 1b TIN is 00-0765432.Line 1c street address reads Topaz Court.Line 1d city, state and ZIP reads Anytown, USA 01230.Line 1e is blank.Line 2 description reads 12- unit apartment building, Anytown, USA. Line 3 DOT is 12/07/24. The year and month of the DOT is used to determine the tax period. The year 24 is circled in red and the entire year 2024 is edited to the right of the circled year.Line 4 is blank.Number of Forms 8288-A or 8288-C attached is 1.A received date of 12-21-2024 is stamped on the return.

Note:

Editing the PART NUMBER

1. The transferee (buyer) must complete Form 8288 and Form 8288-A after the transfer of the USRPI or interest in the partnership has taken place. This requires the transferee to complete Part I, Part II or Part III of Form 8288. The Part number can be found on the left margin Form 8288, and just above the part completed by the transferee. The editing of this field has an impact on the tax calculation.

Note:

Taxpayers should complete either Part I, Part II, Part III, Part IV, or Part V of Form 8288. If Part I and Part II, or Part I and Part III, Part II and Part III are completed, or none of the parts are completed, the default part to edit for transcription is Part I. "X" out Part II and Part III, and if necessary, transfer amounts from Part II or Part III to Part I. However, if Part II has a significant amount in Line 11b, Line 11c, or if Line 9 is checked cross out Part I.

Exception:

If Line 2 describes the transfer of partnership interest, and Part II does not have a significant amount in Line 11c or Line 9 is not checked, cross out Part I and Part II. If necessary, transfer amounts from Part I or Part II to Part III.

Note:

The "1" indicates to the computer an amount realized should be present on Line 6 Part I for the computer to calculate the 10 percent withholding tax on the amount realized.

Exception:

If the Form 8288 is an older version (prior to January 1, 2023) and Part I is completed for a Section 1446(f)(1) return, edit a "3" in the outside left margin next to the Part I box.

Note:

The "2" indicates to the computer to look at Line 10 in Part II for the amount subject to withholding. The computer will systemically calculate the Withholding (W/H) tax at 21 percent (35 percent for dispositions prior to January 1, 2018) on the amount on Line 5c.

Note:

The "3" indicates to the computer to look at Line 13 in Part III for the amount subject to withholding. The computer will systemically calculate the Withholding (W/H) tax at 10 percent.

Reminder:

It’s possible for Part III and Part V to be completed. If they are both completed, do not cross out Part V.

Exception:

If Line 2 describes the transfer of partnership interest, and Part II does not have a significant amount in Line 11c or Line 9 is not checked, cross out Part I and Part II. If necessary, then edit the required information to Part III. If there’s any indication the taxpayer meant to complete Part IV or Part V, correspond for the missing information.

Editing Part IThis figure illustrates the editing of the PART I number on a current Form 8288. This figure displays Part I, Part II and Part III of Form 8288. The DLN of the return appears in the upper right corner of the return. It reads as: 00140-062-00024-4The tax period 202312 is edited and to the right of the title of Form 8288.An IRS received date stamp of 01032024 is present.Line 1a name is Pine Ash Advertising. The name control Pine is underlined in red.The TIN in box 1b is 00-1234567The address on Line 1c is 278 Maple Ave.The City, State, and Postal Code on Line 1d, reads Anaheim, CA 92803Line 1e is blank CCCX is edited on the bottom left side of Line 2.The description and location of the property acquired on Line 2, reads as 827 Cypress Ave Reno, NV 89510.The Date of Transfer on Line 3, reads as 12/28/2023.Line 4 is blank.Line 5 Number of Forms attached is 1.Edited to the left of Part I is the number 1Line 6 has an amount of 1,000,000 which is underlined and has 15% edited to the right of the line.Line 7b has an amount of 150,000Line 8 has an amount of 150,000.

Editing Part IIThis figure illustrates the editing of the PART II number on a current Form 8288. This figure displays Part II of a current Form 8288. The DLN in the upper right corner of the return reads: 00140-009-00024-4The tax period 202312 is edited to the right of the title of Form 8288.Line 1a name is Pine Ash Advertising. The name control Pine is underlined in red.Line 1b TIN is 00-1234567.Line 1c address is 278 Maple Ave.Line 1d city, state, and ZIP is Anaheim, CA 92803.Line 1e is blank.Line 2 description and location of property, reads as 827 Cypress Ave Reno, NV 89510.Computer Condition Code Xis edited in the left margin at the bottom of Line 2.The received date stamp is 01-03-2024.Line 3 Date of Transfer is 12/28/2023.Line 5 Number of 8288-A or 8288-C attached is 1.Line 4 is blank.The number 2 Part number is edited in the left margin and to the left of the words Part II.Line 10 has the amount of 1,000,000 which is underlined and with 15% edited to the right of the amount.Line 11b has the amount of 150,000.Line 12 has the amount of 150,000.

Editing Part IIIThis figure illustrates the editing of the PART III number on a current Form 8288. This figure displays Part III of a current Form 8288. The DLN in the upper right corner of the return reads 00140-009-000-24-4.The tax period 202312 is edited to the right of the title of Form 8288.Line 1a name is Pine Ash Advertising. The name control Pine is underlined in red.Line 1b TIN is 00-1234567.Line 1c address is 278 Maple Ave.Line 1d city, state, and ZIP is Anaheim, CA 92803.Line 1e is blank.Line 2 description and location of property, reads as 827 Cypress Ave Reno, NV 89510.Computer Condition Code Xis edited in the left margin at the bottom of Line 2.Line 3 Date of Transfer is 12/28/2023.Line 4 is blank.Line 5 number of attached 8288-A or 8288-C is 1.Line 13 has the amount of $1,000,000 and is underlined and 10% edited to the right of the amount.Line 14 has the amount of $100,000.Line 15 has the amount of 100,000.The number 3 is edited in the left margin and to the left of Part III

Editing Part IVThis figure illustrates the editing of the PART IV number on a current Form 8288. This figure displays the top part of Form 8288 (lines 1-5) and Part IV of a current Form 8288. The DLN in the upper right corner of the return reads 00140-009-000-24-4.The tax period 202312 is edited to the right of the title of Form 8288.Line 1a name is Pine Ash Advertising. The name control Pine is underlined in red.Line 1b TIN is 00-1234567.Line 1c address is 278 Maple Ave.Line 1d city, state, and ZIP is Anaheim, CA 92803.Line 1e is blank.Line 2 description and location of property, reads as 827 Cypress Ave Reno, NV 89510.Computer Condition Code Xis edited in the left margin at the bottom of Line 2.Line 3 Date of Transfer is 12/28/2023.Line 4 Date of withholding certificate is 01/01/2023.Line 5 number of attached 8288-A or 8288-C is 1.Line 16a number of distributions is 1.Line 16b total amount of distributions is $10,000.Line 16c is blank.Line 17 Transferee’s liability is $100,000.Line 18 total amounts withheld is $10,000.The number 4 is edited in the left margin and to the left of Part IV

Taxpayer Identifying Number (TIN) - end of Line 1b

1. A nine-character Taxpayer Identifying Number (TIN) must be included on Line 1b of all Form 8288 submitted for processing.

Reminder:

If Form 8288 end of Line 1b is an SSN, ITIN or IRSN number, then a TC 000 must be input by the BMF Entity Control Unit to establish the TIN on the BMF. If this action was completed, then the return will be edited with either a "TC 000," a "V" or "W" in purple ink at the end of the TIN, or the IRSN number written in purple ink on end of Line 1b. If any of these indicators are present, then do not route the return to the ECU. Research IDRS to see if the "V" tape is established. If the "V" is not established, route the return to Entity to establish the TIN on the BMF.

• An Employer Identification Number (EIN)
• A Social Security Number (SSN), or
• An Individual Taxpayer Identification Number (ITIN)
• or an Internal Revenue Service Number (IRSN)

Note:

Generally, the deposit activity area would have resolved most of the TIN issues to process the withholding tax payment.

Reminder:

Example:

Jennifer Tiger Advertising, James Puma and Mary Serval with TINs 000-00-5226, 900-00-0002, 00-5236855. IDRS research shows 00-5236855 belongs to Jennifer Tiger Advertising, therefore circle out 000-00-5226 and 900-00-0002

Taxpayer Identifying Number Type, end of Line 1b (TIN TYPE)

1. This is a one-position field which must be edited if the Filer's TIN is an SSN, IRSN or an ITIN.
2. Valid characters are "0" (zero) and "blank" .

Editing the Tin Type IndicatorThis figure illustrates the editing of the TIN TYPE indicator on a current Form 8288, when the primary TIN number shown in box 1b, Row 1 is an SSN, IRSN, or an ITIN number. The DLN in the upper right corner of the return reads: 00140-214-00023-4The tax period 202312 is edited and to the right of the title of Form 8288.Line 1a name is Maple Pine The name control Pine is underlined in red.Line 1b TIN is 000-00-1234.The Tin Type indicator for this example is a 0, because the TIN is an SSN. The Tin Type indicator 0 is edited to the right of the SSN outside of box 1b.Line 1c address is 1897 Fir Dr.Line 1d city, state and ZIP is Little Rock, AR 72201.Line 1e phone number is blank.Line 2 description is blank.A received date stamp is present with the date of 01152024.

Note:

The SSN on Line 1b of Form 8288 must be the full SSN. However, the SSN that appears in the withholding agent box on Form 8288-A can be masked for security purposes. If masked on the Form 8288-A, the SSN will appear in the following format NNN-NN-_ _ _ _ so only the last 4-digits are present on the Form 8288-A. This does not apply to an ITIN, IRSN or EIN number.

Name Control - Line 1a

1. For filers other than individuals , the name control consists of the first four characters of the filer's (corporation, partnership, trust, etc.) name. See IRM 3.21.261.18.2 and Name Control Job Aid Document 7071 (IMF) or Document 7071A (BMF).

Note:

A Japanese Corporation is known as a "Kabushiki Kaisha" and should be moved to the end of the Corporation name if present at the beginning of the name line.

• Alpha (a-z).
• Numeric (0-9).
• Ampersand (&), and hyphen (-).
• Blanks are valid only at the end of the name control.

Transferee (buyer) Address - Line 1c and 1d

1. Address information for the Transferee (buyer) is provided on Line 1c and 1d.
2. Research return attachments to complete or perfect the information provided by the filer if it is incomplete or illegible. Valid characters are alpha (a-z) and numeric (0-9).
3. Refer to the following subsections to perfect the address:

• IRM 3.21.261.18.4
• IRM 3.21.261.18.5
• IRM 3.21.261.18.6
• IRM 3.21.261.18.7

Transferee (buyer)Telephone Number- Line 1e

1. This is a 10-position field for which an entry may or may not be present .
2. Valid characters are, "Numeric 0-9" , and "blank."
3. If present, underline the complete telephone number (include area code). A toll-free number is considered a valid number to underline.

Note:

Exception:

Do not underline a foreign international telephone number, which appears in a format other than (NNN-NNN-NNNN).

Reminder:

Whenever any information is missing on Form 8288, Form 8288-A, or Form 8288-C and a valid telephone number is present, call the taxpayer for the information in lieu of corresponding for the information. Edit Action Trail "TP provided missing info by tel" , or similar language in the lower left corner going vertically up the side of the return.

Caution:

When calling the taxpayer or authorized representative, and before disclosing any tax information, follow IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication. Before leaving any messages on a taxpayer’s answering machine, review IRM 10.5.1.6.7.2, Answering Machine or Voicemail and IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance.

Description and location of the U.S. real property interest acquired, transferred or distributed, or description of transferred partnership interest - Line 2

1. This is a 35-position field (including blank spaces) for which an entry must be present.
2. Valid characters are Alpha (a-z), Numeric (0-9), Hyphen (-) and Slash (/).
3. Underline the description of the U.S. Real Property or transferred partnership interest appearing on Line 2. The description of the USRPI should appear in the format of a street address. Do not include the City, State and ZIP Code. See Figure 3.21.261-7.

Example:

Example:

Timeshare weeks 18-20, circle out 18-20 and edit and underline 18 19 20 so ISRP can transcribe "Timeshare 18 19 20" .

Example:

Section 1446f1 10 percent stake in XYZ partnership, underline so ISRP can transcribe "Section 1446f1 10 percent stake in XYZ partnership" .

Note:

If the property description is not present look at the attached Form 8288-A, or the copy of the withholding certificate (if any) for property description and edit from attachments. The property descriptions must match on Form 8288 and Forms 8288-A.

Caution:

Do not edit "Kabushiki Kaisha" (KK) if it appears as part of the property description, unless there is no other description available. KK is the Japanese word for "Corporation."

Editing the USRPI or U. S. Real Property Description or Partnership InterestThis figure illustrates the editing of the U.S. real property or Partnership Interest description shown on, Line 2 of a current Form 8288. The description appears as 2920 Cedar Blvd., Buffalo, NY 14240 and it appears on Line 2. The property description is underlined in red.The DLN of the return appears in the upper right corner of the return reads: 00140-213-00022-4The tax period 202312 is edited and to the right of the title of Form 8288.Line 1a name is Acacia Inc. The name control Acac is underlined in red.Line 1b TIN is 00-1212121.Line 1c address is 1526 E Alder AveLine 1d City, State, and Postal Code on Line reads Atlanta, GA 30304.Line 2 Description and location of the U.S. real property interest acquired, transferred, or distributed, or description of transferred partnership interest. reads as Residential Property at 2920 Cedar Blvd., Buffalo NY 14240. The address 2920 Cedar Blvd is underlined in red.A received date is present with the date of 01092024.CCC X is edited in the margin on the left of Line 2 near on the bottom row.

1. Prepare correspondence action sheet 3104C.
2. Edit CCC "U."

Example:

Lot 52 of parcel 2534 in Mahogany CO

Note:

A space and punctuations count as characters.

Date of Transfer (DOT) - Line 3

1. This is an eight-position field for which an entry must be present.
2. Valid characters are Numeric 0-9.
3. Edit in MMDDYYYY format. Editing is required on EVERY RETURN.

Note:

If the DOT on Line 3 is not in MMDDYYYY format, then circle out the incorrect DOT format and edit the DOT in the correct format on Line 3.

The Date of Withholding Certificate - Line 4

1. This is an eight-position field for which an entry must be present.
2. Valid characters are Numeric 0-9.
3. Edit in MMDDYYYY format.

Note:

If the date of withholding certificate on Line 4 is not in MMDDYYYY format, then circle out the incorrect date format and edit the date in the correct format on Line 4.

Note:

If the taxpayer attaches a withholding certificate to a prior year Form 8288, edit the date of withholding certificate on Form 8288 (between lines 3 and 4). It is no longer necessary to change the date of transfer to the date of the withholding certificate.

Exception:

Letters 3315 and 3318 are not considered Withholding Certificates. The date on these letters is NOT considered the “NEW Date of Transfer”.

• Letter 3307(SC/CG) Withholding Certificate - Approved Exempt
• Letter 3308(SC/CG) Withholding Certificate - Approved Reduced
• Letter 3309(SC/CG) Withholding Certificate - Approved Exempt
• Letter 3310(SC/CG) Withholding Certificate - Approved Reduced
• Letter 3311(SC/CG) Withholding Certificate - Approved Reduced
• Letter 3497(SC/CG) Withholding Certificate - Approved Reduced
• Letter 3312(SC/CG) Withholding Certificate - Approved Installment Plan

Caution:

Whenever Letter 3312 is attached the date of withholding certificate to edit will be the date of the payment. Do not edit a reduced withholding or bypass indicator.

Example:

Please assume the applicable withholding rate is 10 percent. Installment W/H Certificate is issued March 2, 2019, of which 10 percent ($2,275.00 x 10% = $227.50) FIRPTA tax is to be paid on the initial USRPI installment transfer. Subsequent installment transfer may take place on 03/02/2022 ($3,310.00 x 10% = $331.00), which means the tax period is 202203 and not 201903. The RDD would be 03/26/2022. If it is timely filed, no penalties or interest will be charged.

Caution:

Letter 3315 is NOT considered a Withholding Certificate. When attached, the date on this letter is NOT considered a valid date of withholding certificate (which extends the due date of the return). Do not edit the date of withholding certificate and do not edit a reduced withholding or bypass indicator. If the Date of Withholding Certificate is present on Line 4, circle out the date.

Caution:

Letter 3318 is NOT considered a Withholding Certificate. When attached, the date on this letter is NOT considered a valid date of withholding certificate (which extends the due date of the return). Do not edit the date of withholding certificate and do not edit a reduced withholding or bypass indicator. If the Date of Withholding Certificate is present on Line 4, circle out the date.

Exception:

In the case of a transfer subject to IRC 1446(f)(1) withholding, there are no withholding certificates issued by the IRS; however, the transferee can pay a lesser amount without an approved withholding certificate. These returns will have Part III filled out. On returns prior to January 1,2023, the taxpayer will include the statement "Section 1446(f)(1) withholding" (or something similar) at the top of Forms 8288 and Forms 8288-A.

Example:

Note:

Form 8288 is due to the IRS by the 20th day from the DOT and the same transferee (buyer) withholding agent may file one or more Form 8288 in a month, or in every month of the year.

1. Prepare correspondence action sheet 3104C to request the DOT.
2. Edit CCC "U."
3. Edit the "Default DOT" only on copy B of Form 8288-A so it can be entered in the INTLWebApps.

Note:

Example:

Reminder:

When calling the taxpayer or authorized representative, and before disclosing any tax information, follow IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication. Before leaving any messages on a taxpayer’s answering machine, review IRM 10.5.1.6.7.2, Answering Machine or Voicemail and IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance.

Number of Forms 8288-A or Form 8288-C filed - Line 5

1. This is a three-position field for which an entry must be present.
2. Valid characters are, Numeric 0-9. If the count is written in alpha characters, change it to a numeric number. Maximum number to enter is "999."

Note:

If the number of Forms 8288-A is 1,000 or more, ISRP will transcribe "999" for Line 5. Continue editing per the instructions in this IRM.

Reminder:

Edit CCC “U” and correspond with the taxpayer using IDRS Letter 3104C, when the amount from Form 8288-A, box 4 does not add up to the amount shown on Form 8288, Lines 7a, 7b, 7c, 11a, 11b, 11c, 11d, 14a, or 14b or the amount from Form 8288-A, box 3 does not add up to the amount shown on Form 8288, Lines 6, 10, or 13. See IRM 3.21.261.19.11 and IRM 3.21.25.15.1.

Exception:

If the transferee (buyer) did not provide a Form 8288-A for each transferor (seller), research other attachments, (e.g., settlement statement, withholding certificate, etc.) for the missing seller information. If the seller information is clearly documented in the attachments, create a set or sets of Form 8288-A for each transferor. See IRM 3.21.25.15.3 for editing of Form 8288-A when more than one seller is listed on Form 8288-A. However, do not follow these procedures if there are more or less sellers found in the attached documentation than reported on Line 5 of Form 8288.

Note:

Check the Form 8288-A to see if more than one seller is listed in the “Name of Person subject to withholding” box and edit that count on Line 5. See IRM 3.21.25.15.3 for editing of Form 8288-A when more than one seller is listed on Form 8288-A.

Reminder:

Edit CCC “U” and correspond with the taxpayer using IDRS Letter 3104C, when the amount from Form 8288-A, box 4 does not add up to the amount shown on Form 8288, Line 7a, 7b, 7c, 11a, 11b, 11c, 11d, 14a, or 14b or the amount from Form 8288-A, box 3 does not add up to the amount shown on Form 8288, Lines 6, 10, or 13. See IRM 3.21.261.19.11 and IRM 3.21.25.15.1.

Note:

Withholding Under Sections 1445(a) (Part I) - Line 6, Section 1445(e) (Part II) - Line 10, or Section 1446(f)(1) (Part III) - Line 13

1. This is a 12-position field for which an entry must be present on Line 6 (Part I), Line 10 (Part II), or Line 13 (Part I) of Form 8288. Only one entry is allowed in Line 6, Line 10, or Line 13.
2. Valid characters are Numeric 0-9.
3. The entry in Line 6, Line 10, or Line 13 cannot be a negative entry.

Reminder:

Don’t forget to edit the Part Number in the left margin next to the part number label and the CCC "X" in the left margin of the dotted line of Line 2. See Exhibit 3.21.261-1 and Exhibit 3.21.261-2 .

• Edit “10%” to the right of the amount on Line 6 when there is an amount on Line 7a.
• Edit “15%” to the right of the amount on Line 6 when there is an amount on Line 7b.

Note:

Do not underline the amount realized and do not edit a percentage to the right of the amount realized for 2018 and older versions of Form 8288. Refer to Exhibits 3.21.261-8 through 10 for converting line numbers for prior year revisions of Form 8288 to the most current revision.

• Edit “10%” to the right of the amount on Line 10 when there is an amount on Line 11a.
• Edit “15%” to the right of the amount on Line 10 when there is an amount on Line 11b.
• Edit “21%” to the right of the amount on Line 10 when there is an amount on Line 11c.

Note:

Do not underline the amount realized and do not edit a percentage to the right of the amount realized for 2018 and older versions of Form 8288. Refer to Exhibits 3.21.261-8 through 10 for converting line numbers for prior year revisions of Form 8288 to the most current revision.

• Edit “10%” to the right of the amount on Line 6 when there is an amount on Line 7a.
• Edit “15%” to the right of the amount on Line 6 when there is an amount on Line 7b.

Note:

Do not underline the amount realized and do not edit a percentage to the right of the amount realized for 2018 and older versions of Form 8288. Refer to Exhibits 3.21.261-8 through 10 for converting line numbers for prior year revisions of Form 8288 to the most current revision.

• Edit “10%” to the right of the amount on Line 10 when there is an amount on Line 11a.
• Edit “15%” to the right of the amount on Line 10 when there is an amount on Line 11b.
• Edit “21%” to the right of the amount on Line 10 when there is an amount on Line 11c.

Note:

Do not underline the amount realized and do not edit a percentage to the right of the amount realized for 2018 and older versions of Form 8288. Refer to Exhibits 3.21.261-8 through 10 for converting line numbers for prior year revisions of Form 8288 to the most current revision.

Note:

Do not underline the amount realized and do not edit a percentage to the right of the amount realized for 2018 and older versions of Form 8288. Refer to Exhibits 3.21.261-8 through 10 for converting line numbers for prior year revisions of Form 8288 to the most current revision.

Note:

Before editing CCC "U" and corresponding, research Form 8288 and attachments for taxpayer’s phone number. If found call the taxpayer to obtain the amount realized

Reminder:

When calling the taxpayer or authorized representative, and before disclosing any tax information, follow IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication. Before leaving any messages on a taxpayer’s answering machine, review IRM 10.5.1.6.7.2, Answering Machine or Voicemail and IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance.

Reminder:

Note:

Before editing CCC "U" and corresponding, research Form 8288 and attachments for taxpayer’s phone number. If found call the taxpayer to obtain the correct allocations for the amount realized and amount withheld.

Reminder:

When calling the taxpayer or authorized representative, and before disclosing any tax information, follow IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication. Before leaving any messages on a taxpayer’s answering machine, review IRM 10.5.1.6.7.2, Answering Machine or Voicemail and IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance.

Withholding Tax Liability - Sections 1445(a) (Part I) - Line 7a and 7b, Section 1445(e) (Part II) - Line 11a, Line 11b, and Line 11c, or Section 1446(f)(1) (Part III) - Line 14a

1. This is a 12-position field for which an entry must be present on Line 7a or Line 7b of Part I, Line 11a, Line 11b, or Line 11c of Part II, or Line 14a of Part III on Form 8288. Only one entry is allowed in Line 7a or 7b , Line 11a, Line 11b, or Line 11c, or Line 14a.
2. Valid characters are Numeric 0-9.
3. The entry in Line 7a or Line 7b, Line 11a, Line 11b, or Line 11c, or Line 14a cannot be a negative entry.
4. If Line 6 has a value and Line 7a, 7b, and 7c are blank, research the attached Form 8288-A or any other attachments for the withholding tax liability. The withholding tax liability amount will generally equal the amount on Line 8 or box 4 of Form 8288-A, or the withholding certificate (if any). Edit this amount to Line 7a, 7b, or 7c.

Caution:

It’s possible the buyer (withholding agent/transferee) may have withheld less than the withholding tax liability or in other words, the amount on Line 7a, 7b, or 7c may be more than the amount on Line 8.

Caution:

It’s possible the buyer (withholding agent/transferee) may have withheld less than the withholding tax liability or in other words, the amount on Line 11a, 11b, 11c, or 11d may be more than the amount on Line 12.

Caution:

It’s possible the buyer (withholding agent/transferee) may have withheld less than the withholding tax liability or in other words, the amount on Line 14a or 14b may be more than the amount on Line 15.

Caution:

It’s possible the buyer (withholding agent/transferee) may have withheld less than the withholding tax liability. If this is the case, no further action is needed. Continue processing per normal procedures. The system will calculate the correct amount and the taxpayer will receive a notice for the difference.

Note:

Before editing CCC "U" and corresponding, research Form 8288 and attachments for taxpayer’s phone number. If found call the taxpayer to obtain the amount realized

Reminder:

When calling the taxpayer or authorized representative, and before disclosing any tax information, follow IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication. Before leaving any messages on a taxpayer’s answering machine, review IRM 10.5.1.6.7.2, Answering Machine or Voicemail and IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance.

Reduced Withholding Amount - Line 7c (Part I), Line 11d (Part II), or Line 14b (Part III)

1. This is a one-position field for which an entry may or may not be present.
2. Valid characters are:

• "1" = withholding certificate attached (See withholding certificate chart).

Reminder:

Edit the reduced withholding indicator 1 in Line 7c, Line 11d or Line 14b, and bypass indicator “1” next to one of those lines when one of the six "Approved" certificates are attached to Form 8288:

• Letter 3307(SC/CG) - Approved Exempt
• Letter 3308(SC/CG) - Approved Reduced
• Letter 3309(SC/CG) - Approved Exempt
• Letter 3310(SC/CG) - Approved Reduced
• Letter 3311(SC/CG) - Approved Reduced
• Letter 3497(SC/CG) - Approved Reduced
• Letter 3312(SC/CG) - Approved Installment Plan

Caution:

Whenever Letter 3312 is attached the new date of withholding certificate to edit will be according to the date of payment. (e.g., payment date is April 1, 2022 then valid date of withholding certificate to edit would be 04012022 and the tax period to use would be 202204).

Example:

The Installment Withholding Certificate is issued March 2, 2019, of which 10% ($2,275.00 x 10% = $227.50) FIRPTA tax is to be paid on the initial USRPI installment transfer. Subsequent installment transfer may take place on 03/02/2022 ($3,310.00 x 10% = $331.00), which means the tax period is 202203 and not 201903. The RDD would be 03/22/2022. As long as it is timely filed, no penalties or interest will be charged.

Otherwise, do not edit anything. The tax will be assessed at the full 10 percent, 15 percent, or 21 percent (35 percent for dispositions prior to January 1, 2018) amount for the rejected letters.

Reminder:

Reminder:

Reminder:

Note:

There are no official withholding certificates for IRC 1446(f)(1) (Form 8288 Part III) returns which is why a buyer or seller can request a reduced withholding rate without one. However, if Line 14a is less than 10 percent of Line 13, and the Line 14b checkbox is not checked, and there’s no clear indication from other attachments the taxpayer requesting a reduced withholding rate, do not edit the checkbox, a Bypass Indicator (BPI), or the amount on Line 14b. Continue processing using normal procedures.

1. Verify an approved withholding certificate is attached. See withholding certificate letter number table in paragraph (2).
2. If attached, edit a reduced withholding indicator “1” in the middle of Line 7c. See Exhibit 3.21.261-1 . See Exhibit 3.21.261-9 , Exhibit 3.21.261-10 and Exhibit 3.21.261-10 for previous tax years.

Note:

If no withholding certificate is attached, circle the checkbox on Line 7c. Do not edit a reduced withholding indicator.

Reminder:

1. Edit a red check mark inside the checkbox.

Reminder:

Reminder:

Edit a “10%” or “15%” to the right of Line 6 whether or not an approved withholding certificate is attached. See IRM 3.21.261.1.1.1 for more information on when to edit 10% or 15%.

1. Verify an approved withholding certificate is attached. See withholding certificate letter number table in paragraph (2).
2. If attached, edit reduced withholding indicator "1" in the middle of Line 11d. See Exhibit 3.21.261-2 . For previous tax years, see Exhibit 3.21.261-9 and Exhibit 3.21.261-10 .

Note:

If no withholding certificate is attached, circle Line 11d checkbox. (For previous year forms, arrow up the amount to the correct line.) However, if the checkbox on Line 9 is marked, arrow the amount from Line 11a or Line 11b to Line 11c. (For 2016 and previous tax years, arrow up the amount to the "amount subject to 35%" , Line 5a.)

Note:

If no amount appears on lines 11a, 11b, or 11c, then look at the Form 8288-A (box 2 or 3) for the amount realized or gain and edit it on the correct line.

1. Edit reduced withholding indicator “1” in the middle of Line 11d.

Note:

On previous year forms, arrow down (in red) the amount to amount subject to reduced withholding rate line.

• Circle the checkbox in Line 11d. (5d for prior year)

Note:

• Arrow up the amount from Line 11c when Line 9 is marked. (For prior year forms, arrow up the amount from Line 5c when Line 5e is marked.)

Note:

Note:

Do not edit a reduced withholding indicator.

Reminder:

Do not forget to edit the correct the date of withholding certificate on Form 8288, Line 4. See IRM 3.21.261.19.9

Reminder:

Edit a “10%”, “15%”, or “21%” to the right of Line 10 whether or not an approved withholding certificate is attached. See IRM 3.21.261.1.1.1 for more information on when to edit 10% or 15%.

1. Edit a reduced withholding indicator “1” in the middle of Line 14b. See Exhibit 3.21.261-1.

Note:

Unlike FIRPTA returns, no withholding certificate is required to be attached on returns filed under IRC 1446(f)(1).

1. Check for any indication the taxpayer is requesting a reduced withholding rate on any forms or attachments. If found, edit a check mark inside the checkbox and edit a reduced withholding indicator “1” in the middle of Line 14b. If not found, do not edit; continue processing. See Exhibit 3.21.261-1.

Reminder:

Always edit a “10%” to the right of Line 13 whether or not the withholding is at an adjusted rate.

Withholding under Section 1446(f)(4) - Part IV, Lines 16a through 16c, Line 17, and Line 18

1. Only partnerships will fill out Part IV of Form 8288 and attach a Form 8288-C.
2. A partnership will submit a Form 8288 and Form 8288-C to report a distribution payment on behalf of the transferee (buyer). The partnership will continue making payments until the full 10 percent of the total amount realized plus any applicable interest paid.

Reminder:

A partnership is required to withhold all distribution payments to the transferee (buyer) any time the transferee fails to withhold 10 percent of the total amount realized from the transferor (foreign person/seller) on the sale of a stake in the partnership.

Caution:

The date of the distribution payment on Line 4 of Form 8288 is used to calculate the due date. Make sure the date of the distribution payment is present on Line 4.

Note:

If no response is received, edit the green rocker amount (located at the top right corner of Form 8288) on Line 18 and continue processing.

Claiming a Refund of Withholding Under Section 1446(f)(4) - Part V, Lines 19 through 22

1. This part of Form 8288 is not processed by Submission Processing. It is filled out by the transferee (buyer) to claim a refund on excess withholding reported on Part IV of Form 8288 by the partnership. The transferee (buyer) is still required to file a Form 8288, Part III to report the withholding tax on a partnership transfer. Ogden Accounts Management department will work these claims.
2. Follow the steps below when a Form 8288 with Part V is received.

• If no previous Form 8288, Part III is found, edit CCC “U” and correspond for missing information. Prepare Letter 3104C CAS. The transferee (buyer) cannot receive a refund until a Form 8288 with Part III is filed.
• If a previous Form 8288, Part III is found, route the Form 8288 and any attachments to Ogden Accounts Management (AM) department.

• If no previous Form 8288, Part III is found, continue processing per normal procedures and route a photocopy of Form 8288 and any attachments to Ogden Accounts Management (AM) department. If From 8288-A is attached, cross it out. The transferor (seller) is not entitled to a withholding credit under Section 1446(f)(4) because no withholding took place. If a Form 8288-A is entered and a stamped Form 8288-A is mailed to the seller, this could create an erroneous refund.
• If a previous Form 8288, Part III is found, route the Form 8288 and any attachments to Ogden Accounts Management (AM) department.

Bypass Indicator (BPI)

1. This is a one-position field for which an entry may or may not be present.
2. The valid characters are 1 and Blank .
3. The BPI is edited in the outside right margin of Part I, Line 8, Part II, Line 12, or Part III, Line 15.

Note:

The Bypass Indicator is edited on the right margin of Line 6 of Part I and Part II of prior year forms. See the specific Form 8288 "T" line definition exhibit for the form version you are editing.

Caution:

Always edit a Bypass Indicator "1" whenever you edit the checkbox in Line 7c (Part I), Line 11d (Part II), or Line 14b (Part III). Therefore, if no checkbox in Line 7c (Part I), Line 11d (Part II), or Line 14b (Part III) is being edited, then no bypass indicator is to be edited.

Reminder:

If no bypass indicator is to be edited and the Date of Withholding Certificate is present on Line 4 of Form 8288, do not circle out the date. The only time the Date of Withholding Certificate is circled out is when there is no valid withholding certificate attached or when Letters 3316(SC/CG) or 3316(SC/CG) are attached, which are not valid letters. See IRM 3.21.261.19.9 .

• "1" - tax is less than 10 percent and a reduced withholding certificate is attached (Parts I and II). No Math Error.
• "1" - tax is less than 15 percent and a reduced withholding certificate is attached (Parts I and II). No Math Error.
• "1" - tax is less than 21 percent (35 percent for dispositions prior to January 1, 2018) and a reduced withholding certificate is attached (Part II). No Math Error.
• "1" - tax is less than 10 percent (Part III) or the return includes the statement "Section 1446(f)(1) withholding" (or something similar) at the top of Forms 8288 and Forms 8288-A of prior year returns.
• "Blank" - computer will systemically calculate the tax at 10 percent of the amount realized present in Part I Line 7a, Part II Line 11a, or Part III Line 14a.

Exception:

Do not edit a reduced withholding checkbox when an Installment Sales Withholding Certificate Letter 3312 (SC/CG) is present.

Exception:

Do not edit a reduced withholding checkbox when an Installment Sales Withholding Certificate Letter 3312 (SC/CG) is present.

Note:

No withholding certificate is attached.

Note:

No withholding certificate is attached.

Note:

No withholding certificate is attached.

Note:

Part I Line 7c is checked, or is checked by C&E.

Note:

Part III Line 14b is checked.

Note:

Part I Line 7c is checked.

Note:

Part II Line 11d is checked.

Figure 3.21.261-8a

Usage of Bypass and Reduced Withholding Indicator - SubstantiatedThis figure illustrates the editing of current Form 8288 when a valid withholding certificate is attached. Completed Form 8288, Part II - Withholding Certificate attached.The DLN of the return appears in the upper right corner of the return. It reads as: 00140-059-00011-4The tax period 202309 is edited and to the right of the title of Form 8288.Form 8288 Line 1a name reads Alder, Birch and Elm Partners The name control Alde is underlined in red.Line 1b TIN is 00-2345678.Line 1c address is PO Box 1856.Line 1d City, State, and Postal Code is Atlanta, GA 30304.Line 1e is blank.Computer Condition Code Xis edited in the left margin at the bottom of Line 2.Line 2 Description and location of the U.S. real property interest acquired, transferred or distributed or description of transferred partnership interest reads: 126 Fir Ave Atlanta, GA 30304 126 Fir Ave. is underlined in red.A received date stamp is present with the date of 01092024.Line 3 Date of Transfer reads: 09242023Line 4 Date of withholding certificate is 12282023 and written in red.Line 5 Number of Forms 8288-A or 8288-C attached is: 1Edited to the left of Part II is the number 2.Line 10 Amount subject to withholding reads: $20,000.00 which is underlined with edited 15% to the right of the line.Line 11d checkbox is checked Line 11d Withholding at an adjusted amount is $1,000.00Line 12 Total Amount Withheld is $1,000.00.Bypass Indicator 1 is edited to the right outside margin of Part II, Line 12.A valid certificate is present with the words Internal Revenue Service on the left side. On the right side is a column that reads in the following order:Department of TreasuryDate of the Withholding Certificate: 12/28/2023Taxpayer Identification Number: 00-2345678Contact Person: Ash BirchContact Identification Number: 0007654321

Figure 3.21.261-8b

Figure 3.21.261-8c

Sample of a Reduced Withholding CertificateThis figure displays a sample of Letter 3310(SC/CG), Approved Reduced Withholding Certificate. The contents of the certificate are as follows: Printed in the upper left corner of the certificate are the words Internal Revenue Service.Printed in the upper right corner of the certificate is Department of the Treasury.Below it, is a line that reads, Date of the Withholding Certificate.Below the date is a line that reads Taxpayer Identification Number (TIN).Below the TIN number is the File Number.Below the file number appears the Contact Person name.Below contact person name is the contact identification number.Below the contact identification number is the contact telephone number and contact hours of the IRS employee.The certificate begins with the salutation, Dear.The first paragraph has three fill in fields. The first field is for the description of the USRPI being sold. The second field is for the name of the transferor (seller), and the third field is for the transferee (buyer) name. The first paragraph template reads:We received your Form 8288-B, Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests. This Form 8288-B is for the disposition of the U.S. real property interest described as [ ]. The transferor (seller) of the described property is [ ] and the transferee (buyer) is [ ].The second paragraph has two fill in fields. The first field is for the name of the transferor (seller), and the second field is for the reduced withholding tax amount the transferee (buyer) must pay. The second paragraph template reads:This letter is your approved withholding certificate and legal notification that the required withholding amount for [ ] tax liability for the disposition of the U.S. real property interest described above would exceed their maximum tax liability. Therefore, we reduced the required withholding to [$ ]. We also determined that substitution of the reduced withholding amount would not jeopardize the collection of the tax imposed on any gain reported from the disposition of the U.S. real property interest.The third paragraph is a reminder for the transferee (buyer) to file the return and remit the money. It reads:As a reminder, this withholding certificate doesn’t eliminate the requirement to file a United States income tax return to report this transaction.The last paragraph is the ending paragraph and it reads:If you have any questions, please call the contact person whose name, telephone number and hours appear above. If the number is outside your local calling area, there will be a long-distance charge to you. Or you may write to us at the address shown at the top of this letter.

Withholding Tax Liability- Lines 7a, 7b, 11a, 11b, 11c, and 14a

1. Only one line can contain an entry.
2. This is a 12-position field for which an entry must be present.
3. Valid characters are, Numeric 0-9.
4. The total tax line cannot be negative.

Note:

If the amount withheld does not equal the percentage of the amount realized listed and no withholding certificate is attached, do not edit the correct amount. Leave the amount as is. The computer will calculate the correct amount.

Reminder:

For post February 16, 2016 dispositions, where a property is acquired by the transferee for use by the transferee as a residence and the amount realized by the foreign transferor is more than $300,000, but does not exceed $1,000,000, the withholding agent generally must withhold and remit to the IRS 10 percent of the amount indicated in Line 6, Part I, or Line 10, Part II of Form 8288.

FIRPTA Tax Discrepancy - Part I

1. If Line 7c is checked, Circle out the checkbox. Otherwise, do nothing.
2. Do not edit a Bypass Indicator so the computer can compute the tax at 10 percent.

1. If Line 7c is checked, Circle out the checkbox. Otherwise, do nothing.
2. Do not edit a Bypass Indicator.

1. Edit a check mark in the checkbox in Line 7c.
2. Edit the BPI "1" in the right outside margin of Line 8.

Reminder:

Edit a “10%” or “15%” to the right of Line 6 whether or not an approved withholding certificate is attached.

1. Place a red "X" to the left of the incorrect entry.
2. Write the correct entry (found on Form 8288A, the withholding certificate, or other attachments if any, towards the middle of the second paragraph) to the left of the incorrect entry of Lines 7a or 7b, Part I.

FIRPTA Tax Discrepancy - Part II

1. Circle the checkbox in Line 11d.
2. Do not edit a reduced withholding or Bypass Indicator so the computer can compute the tax at 10 percent.

1. Circle the checkbox in Line 11d.
2. Do not edit a reduced withholding or Bypass Indicator so the computer can compute the tax at 15 percent.

1. Circle the checkbox in Line 11d.
2. Do not edit a reduced withholding or Bypass Indicator so the computer can compute the tax at 21 percent (35 percent for dispositions prior to January 1, 2018).

1. Edit a reduced withholding indicator in the middle of Line 11d, and
2. Edit the BPI "1" in the right outside margin of Line 12.

Reminder:

Edit a “10%”, “15%”, or “21%” to the right of Line 10 whether or not an approved withholding certificate is attached.

1. Place a red "X" to the left of the incorrect entry.
2. Write the correct entry (found on Form 8288A, the withholding certificate or other attachments, if any, towards the middle of the second paragraph) to the left of the incorrect entry of Lines 11a, 11b, or 11c, Part II.

Reminder:

Transferees (buyers) filing IRC 1446(f)(1) returns (Form 8288, Part III) can request a reduced withholding amount on Line 14b without providing a withholding certificate.

IRC 1446(f)(1) Tax Discrepancy - Part III

Reminder:

1. Place a red "X" to the left of the incorrect entry.
2. Write the correct entry (found on Form 8288-A or other attachments, if any) to the left of the incorrect entry of Lines 14a or 14b, Part III.

Large Trust Election - Line 9, Part II

1. This is a one-position field for which an entry may or may not be present.
2. No editing is necessary. ISRP will enter "1" if checkbox is checked on Line 9, Part II.

Note:

Large trust elections have over 100 people and are taxed at a 21 percent (35 percent for dispositions prior to January 1, 2018) rate.

♦Signature♦

1. A signature (withholding agent/transferee (buyer), partner, fiduciary, or corporate officer) and jurat is required for all returns except the following:

• Returns prepared under IRC 6020(b). These returns must be signed by a Compliance Function representative. See IRM 3.21.261.9.2 , IRC 6020(b) - Prepared by Collection.

Note:

Note:

If the TRPRT print states "TRPRT Print Do Not Process" in the top margin, circle the words "Do Not Process."

Note:

• The return is not signed on the line designated for the taxpayer's signature, or
• The jurat is not present on the line designated for the taxpayer signature (non-standard return), or
• Only the entity information is present and there are no attachments containing tax data,

1. Correspond using an approved Correspondence Action Sheet
2. Edit CCC "U" if corresponding for signature only.
3. Leave in batch and continue editing.

Note:

1. If the "signature declaration" is altered or stricken (crossed out), see IRM 3.21.261.9.6 , Frivolous Arguments. See Exhibit 3.21.261-6 .
2. If the taxpayer responds with a self-prepared "signature declaration" it must contain the same language as the jurat on the tax return, e.g., "UNDER PENALTIES OF PERJURY, I DECLARE THAT I HAVE EXAMINED THIS RETURN, INCLUDING ACCOMPANYING SCHEDULES AND STATEMENTS, AND TO THE BEST OF MY KNOWLEDGE AND BELIEF, IT IS TRUE, CORRECT AND COMPLETE."

Note:

Preparer Signature

1. A signature may or may not be present; do not correspond if not present.
2. Do not correspond for a missing signature on any return prepared by a Compliance function.
3. Do not question any signature on the return. Internal Revenue (IR) Regulations Section 301.6064-1 allows the Service to presume the signature on the return, statement or other document is the true signature of the person who signed the document.
4. A constructive signature (that is, a signature on an accompanying check, letter, etc.) is not acceptable unless the signature follows a perjury statement containing the same language as the jurat of the tax return.

♦Preparer's EIN or PTIN♦

1. ISRP will transcribe the entry. The Preparer Tax Identification Number (PTIN) is located to the right of the Preparer's Signature at the bottom of Form 8288.

Reminder:

NMF FIRPTA Form 8288 Penalty and Interest Assessment

1. All Form 8288 returns with a Date of Transfer (DOT) prior to 12/13/2005 must be transshipped to the Kansas City Submission Processing Campus (KCSPC) for processing to the Automated Non-Master File (ANMF) system. Once the return is numbered accounting will coordinate with OSPC.
2. KCSPC NMF Accounting will fax Form 8288 and Form 8288-A to OSPC for recordation into the FIRPTA part of the International Web Applications (INTLWebApps).
3. Upon receipt of the fax from KCSPC, OSPC will perform the following steps in the FIRPTA database part of the INTLWebApps within two days of receipt.

Caution:

Review Form 8288 to see if it is an Installment Sales Return. If the return is an installment sales return, inform KCSPC NMF accounting to transship the return to OSPC for BMF processing and take no further action. If it is not an installment sales return, continue with the following steps.

1. Select Form 8288-A (IRMF), New Form 8288-A
2. Enter the Form 8288 data into the database.
3. Document the generated penalty calculations (FTF and FTP) on Form 8288.
4. Mail out Form 8288-A Copy B to the foreign taxpayer along with Quick Note 3296 SC/CG.

Note:

Form 8288 "T" Lines Definition - Page 1

This exhibit illustrates the transcription lines on Form 8288, Page 1. A letter T appears in the following places. Remittance Amount is edited on the top right margin of the page.Tax Period (YYYYMM) is edited to the right of the title of the form on the top of the page.Name Line and the name control is on Line 1a,Taxpayer Identifying Number is on Line 1b.TIN TYPE appears to the right of Line 1b in the margin.Domestic or foreign street address (or in care of name) is on Line 1c.Domestic or Foreign city, state or postal code is on Line 1d.Taxpayer Telephone Number is on Line 1e.Computer Condition Code is edited in the left outside middle margin of Line 2.Property Description on the first two rows of Line 2.IRS Received Date (MMDDYYYY) is edited in the center of Line 2 and above Line 4.Line 3 - Date of Transfer (MMDDYYYY). Line 4 Date of withholding certificate (MMDDYYYY).Line 5 - Number of Forms 8288-A filed - Part Number 1 - edited to the left outside margin next to the words Part I.Line 6 amount subject to withholding - T line with label that says Edit 10% or 15% to the right of Line 6.Line 7a - Withholding tax liability at 10%. Line 7b - Withholding tax liability at 15%.Line 7c dotted portion - Reduced Withholding. Line 7c checkbox - Withholding at an adjusted amount.Line 7c - Withholding at an adjusted amount.Bypass Indicator - outside right margin of Part I, next to Line 8.Part Number 2 - Edited to the left outside margin next to the words Part II.Line 9 - Large trust election to withhold at distribution box.Line 10 amount subject to withholding - T-line with label that says Edit 10%, 15%, or 21% to the right of Line 10.Line 11a - Withholding tax liability at 10%.Line 11b - Withholding tax liability at 15%.Line 11c - Withholding tax liability at 21%.11d (dotted portion) - Reduced Withholding.Line 11d checkbox - Withholding at an adjusted amount.Line 11d - Withholding at an adjusted amount.Bypass Indicator - outside right margin of Part II, next to Line 12.Part Number 3 - Edited to the left outside margin next to the words Part III.Line 13 amount subject to withholding - T-line with a label that says Edit 10% to the right of Line 13.Line 14b (dotted portion) - Reduced Withholding indicator.Line 14b checkbox - Withholding at an adjusted amount.Line 14b - Withholding at an adjusted amount.Bypass Indicator - outside right margin of Part III, next to Line 15.

Form 8288 "T" Lines Definition - Page 2

This exhibit illustrates the transcription lines on Form 8288, Page 2. A letter T appears in the following places. Part Number 4 - Edited to the left outside margin next to the words Part IV.Line 18 - Total amounts withheld.SignaturePTIN - Prepares Tax Identification Number on bottom right side of page.Firms EIN - bottom right side of page.Firm Phone no - bottom right side of page.

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

This exhibit displays a copy of Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons. The left side of the form do not have any box or line numbers. The top left hand corner box is the Withholding Agent's name (Willow Oak), street address (1803 Elm Ave), city (Reno), state (NV), and zip code (89501) entity box.Underneath the withholding agent's entity box is the withholding agent's U.S. TIN (000-00-4321).The box to the right of the withholding agent's TIN (00-00-1234) is the Identification Number of the Foreign Person subject to withholding.Under the TIN boxes (bottom left hand corner box) appears the box for the Name of Person Subject to Withholding(Balsam Hickory).Under the Name of Person Subject to Withholding is the Foreign Address (number, street, apt. or suite no.) box (4443 Fir Dr.).Under the Foreign Address (number, street, apt. or suite no.) box is the City or town, state or province, country (not U.S.) box (Calgary AB T2A 3H8.)The Date of Transfer appears in Box 1 (09-03-2023).The Gain recognized by a foreign appears in Box 2.The Amount Realized appears in Box 3 (20,000.00).Federal income tax withheld appears in Box 4 ($2,000.00).The description checkboxes of Withholding under section 1445 or 1446(f) appear in box 5 (Box 1445 is checked).The description checkbox of the foreign person subject to withhold appears in Box 6 (individual is checked).To the right of the City, province state, postal code and country (not U.S.) box is Box 7, the Country Code box (CA).Description of property transferred appears in box 8 (1234 No. 4321 E. Tampa FL 33602).

Computer Condition Codes (CCC) -Form 8288

Note:

Edit CCC "D" if the FTP box on Form 13596 is checked.

Note:

Edit CCC "R" if the FTF box on Form 13596 is checked.

Note:

This code is used when it is determined that an excess remittance should be applied to a different tax class or module (period). The CCC "X" will freeze the tax module from refunding or offsetting any monies by generating a TC 570.00.

Caution:

When using "CCC 7" do not use "CCC D or R"

♦U.S. Possessions ZIP Codes♦

American Samoa (AS)

Federated States of Micronesia (FM)

Marshall Islands (MH)

Northern Mariana Islands (MP)

Puerto Rico (PR)

Virgin Islands - U.S. (VI - Entity Section) (VQ - Other than Entity Section)

Potential Frivolous Arguments for Examination Review

♦Potential Frivolous Arguments for Examination Review♦

1. Files a return claiming several types of deductions, credits, or overpayments/refunds that have no relation to reality and because of their outrageous character, qualify as frivolous returns.
2. Files a return containing the filers identifying information but does not request a refund, often lacking sufficient information to determine a tax liability.
3. Files a return with several types of rambling dialogue or confusing arguments no one could reasonably view as a good faith attempt to comply with the law.
4. Files a return that attempts to send some type of message or protest to the IRS but does not include sufficient identifying information for the IRS to either determine the identity of the taxpayer or correspondent or return address.

Note:

Returns having only zeros, no entries, are blank, or show "None" , "Not Liable," etc. with no evidence of frivolous arguments are not to be considered as frivolous returns.

Note:

Frivolous arguments citing "Collection Due Process" (CDP) should be reviewed by Collections for possible referral to Appeals. Refer to IRM 5.19.8, Collection Appeal Rights, for more information.

Form 4442

Form 4442This Exhibit illustrates a blank copy of Form 4442, Inquiry Referral. This referral is used to document a phone call, when the tax examining technician is unable to assist the caller. The Inquiry Referral is then forwarded to the Philadelphia Accounts Management Campus, IMF or BMF International unit to assist the caller. It is forwarded via FAX.

Form 8288 “T” Line Definitions (April 2018 Revision)

Form 8288 “T” Line Definitions (April 2018 Revision)This exhibit illustrates the transcription lines on Form 8288. April 2018 Revision. A letter T appears in the following places on Part I:The Remittance Amount is edited on the right top margin of the page.The Tax Period is edited on the right of the title of the form appearing on the top of the page. (YYYYMM)The Part Number 1 is edited in the Left outside margin of the Part I box.Name of buyer or other transferee responsible on Line 1, Row 1. (Line 1a of Form 8288, Rev 2023.)Identifying Number appears on Line 1, Row 1 at the end of the row. (Line 1b US TIN of Form 8288, Rev 2023.)TIN TYPE appears on Line 1, Row 1 at the end of the row where the TIN number is at. (Right of line of Form 8288, Rev 2023.)In Care of Name Line, domestic or foreign street address appears on Line 1, Row 2. (Line 1c of Form 8288, Rev 2023.)Domestic or Foreign city, state or postal code appears on Line 1, Row 3. (Line 1d of Form 8288, Rev 2023.)Taxpayer Telephone Number appears at the end of Line 1, Row 3. (Line 1e of Form 8288, Rev 2023.)The IRS Received Date is edited on the second line above Line 4.The Computer Condition Code is edited in the left outside middle margin of Line 2.The Property Description appears on the first two rows of Line 2.The Date of Transfer appears on Line 3. (MMDDYYYY)Next to Line 3 of the 2018 version of Form 8288, Line 4 (MMDDYYYY) for the Date of withholding certificate is added. (Line 4 Form 8288, Rev 2023.)Line 4 - Number of 8288-A attached. (Line 5 of Form 8288, Rev 2023.)Dotted portion of Lines 5a - Amount subject to withholding at 15%. (Line 6 and dotted portion on line 7b of Form 8288, Rev 2023.)Dotted portion of Lines 5b - Amount subject to withholding at 10%. (Line 6 and dotted portion on line 7a of Form 8288, Rev 2023.)Dotted portion Line 5c - Withholding at a reduced rate. (Line 7c of Form 8288, Rev 2023.)Line 5c- Withholding at an adjusted amount. (Line 7c of Form 8288, Rev 2023.) Line 5c checkbox withholding at a reduced rate. (Line 7c Withholding at an adjusted amount checkbox of Form 8288, Rev 2023.)Line 6 total amount withheld. (Lines 7a and 7b of Form 8288, Rev 2023.)Bypass Indicator - Edited in the right margin and to the right of line 6.This exhibit illustrates the transcription lines on Form 8288, April 2018 Revision. A letter T appears in the following places on Part II:Part Number 2 is edited to the left outside margin of the Part II box.Name of entity or fiduciary responsible on Line 1 Row 1. (Line 1a of Form 8288, Rev 2023.)Identifying Number appears on Line 1, Row 1 at the end of the row. (Line 1b US TIN of Form 8288, Rev 2023.)TIN TYPE appears on Line 1, Row 1 at the end of the row where the TIN number is at. (Left of line of Form 8288, Rev 2023.)In Care of Name Line, domestic or foreign street address appears on Line 1, Row 2. (Line 1c of Form 8288, Rev 2023.)Domestic or Foreign city, state or postal code appears on Line 1, Row 3. (Line 1d of Form 8288, Rev 2023.)Taxpayer Telephone Number appears at the end of Line 1, Row 3. (Line 1e of Form 8288, Rev 2023.)The IRS Received Date is edited on the second line to the right of Line 4.The Computer Condition Code is edited in the left outside middle margin of Line 2.The Property Description appears on the first two rows of Line 2.The Date of Transfer appears on Line 3. (MMDDYYYY)Next to Line 3 of the 2018 version of Form 8288, Line 4 (MMDDYYYY) for the Date of withholding certificate is added. (Line 4 Form 8288, Rev 2023).Line 4 - Number of 8288-A attached. (Line 5 of Form 8288, Rev 2023.)Dotted portion of Lines 5a - Amount subject to withholding at 15%. Dotted portion of Lines 5b - Amount subject to withholding at 10%. Dotted portion of Lines 5c - Amount subject to withholding at 21%. Dotted portion Line 5d - Withholding at a reduced rate. Line 5d checkbox withholding at a reduced rate. Line 6 total amount withheld. Line 5e Large trust election to withhold the distribution. Bypass Indicator - Edited in the right margin and to the right of line 6.Signature - bottom left side of Form.PTIN - bottom right side of Form.Firm EIN - bottom right side of Form.Phone number - bottom right side of Form.

Form 8288 “T” Line Definitions (February 2016 Revision)

Form 8288 “T” Line Definitions February 2016 RevisionThis exhibit illustrates the transcription lines on Form 8288, February 2016 Revision Part I. A letter T appears in the following places: The Remittance Amount is edited on the right top margin of the page.The Tax Period is edited on the right of the title of the form appearing on the top of the page. (YYYYMM)The Part Number is edited in the Left outside margin of the Part I box.Name of buyer or other transferee responsible on Line 1, Row 1. (Line 1a of Form 8288, Rev 2023.)Identifying Number appears on Line 1, Row 1 at the end of the row. (Line 1b US TIN of Form 8288, Rev 2023.)TIN TYPE appears on Line 1, Row 1 at the end of the row where the TIN number is at. (Left of line of Form 8288, Rev 2023.)In Care of Name Line, domestic or foreign street address appears on Line 1, Row 2. (Line 1c of Form 8288, Rev 2023.)Domestic or Foreign city, state or postal code appears on Line 1, Row 3. (Line 1d of Form 8288, Rev 2023.)Taxpayer Telephone Number appears at the end of Line 1, Row 3. (Line 1e of Form 8288, Rev 2023.)The IRS Received Date is edited on the second line to the right and above Line 4.The Computer Condition Code is edited in the left outside middle margin of Line 2.The Property Description appears on the first two rows of Line 2.The Date of Transfer appears on Line 3. (MMDDYYYY)Next to Line 3 of the 2018 version of Form 8288, Line 4 is added (MMDDYYYY) for the Date of withholding certificate. (Line 4 Form 8288, Rev 2023.)Line 4 - Number of 8288-A attached.Line 5 - Amount realized on the transfer. (Line 5 that is edited on the dotted portion on Line 5a or Line 5b of Form 8288, Rev 2023.)Line 6c dotted portion - Reduced Withholding. (Line 5c of Form 8288.)Line 6c checkbox - Reduced Withholding checkbox. (Line 5c of Form 8288.)Line 7- Amount withheld. (Line 6.)The Bypass Indicator is edited in the outside right margin of Part I, Line 7. (Line 8 of Form 8288, Rev 2023.)This exhibit illustrates the transcription lines on Form 8288, February 2016 Revision Part II. A letter T appears in the following places:The Part Number is edited in the Left outside margin of the Part II box.Name of entity of fiduciary responsible on Line 1, Row 1. (Line 1a of Form 8288, Rev 2023.) Refer to Part I bullets 5-8 for additional T- Lines not shown in Part II Line 1 of this Exhibit.Identifying Number appears on Line 1, Row 1 at the end of the row. (Line 1b US TIN of Form 8288, Rev 2023.)The IRS Received Date is edited on the second line above Line 4.The Computer Condition Code is edited in the left outside middle margin of Line 2.The Property Description appears on the first two rows of Line 2.The Date of Transfer appears on Line 3. (MMDDYYYY)Next to Line 3 of the 2018 version of Form 8288, Line 4 is added (MMDDYYYY) for the Date of withholding certificate. (Line 4 Form 8288, Rev 2023.)Line 4 - Number of 8288-A attached. (Line 5 of Form 8288, Rev 2023.)Line 5a amount subject to withholding at 35%. (Line 5c.) Line 5b amount subject to withholding at 15%. (Line 5a.) Line 5c amount subject to withholding at 10%. (Line 5b.) Line 5d amount subject to withholding at a reduced rate%. Line 5e Large trust election to withhold at distribution. Line 6 Total amount withheld.The Bypass Indicator is edited in the outside right margin of Part II, Line 6. (Line 12 of Form 8288, Rev 2023.)Signature - bottom left side of Form.PTIN - bottom right side of Form.Firm EIN - bottom right side of Form.Phone number - bottom right side of Form.

Form 8288 “T” Line Definitions (August 2013 Revision)

This exhibit illustrates the transcription lines on Form 8288 August 2013 Revision, Part I. A letter T appears in the following places. The Remittance Amount is edited on the right top margin of the page.The Tax Period is edited on the right of the title of the form appearing on the top of the page. (YYYYMM)The Part Number is edited in the Left outside margin of the Part I box.Name of buyer or other transferee responsible on Line 1, Row 1. (Line 1a of Form 8288, Rev 2023.)Identifying Number appears on Line 1, Row 1 at the end of the row. (Line 1b US TIN of Form 8288, Rev 2023.)TIN TYPE appears on Line 1, Row 1 at the end of the row where the TIN number is at. (Left of line of Form 8288, Rev 2023.)In Care of Name Line, domestic or foreign street address appears on Line 1, Row 2. (Line 1c of Form 8288, Rev 2023.)Domestic or Foreign city, state or postal code appears on Line 1, Row 3. (Line 1d of Form 8288, Rev 2023.)Taxpayer Telephone Number appears at the end of Line 1, Row 3. (Line 1e of Form 8288, Rev 2023.)The IRS Received Date is edited on the second line above Line 4.The Computer Condition Code is edited in the left outside middle margin of Line 2.The Property Description appears on the first two rows of Line 2.The Date of Transfer appears on Line 3. (MMDDYYYY)Next to Line 3 of the 2018 version of Form 8288, Line 4 is added (MMDDYYYY) for the Date of withholding certificate. (Line 4 Form 8288, Rev 2023.)Line 4 - Number of 8288-A attached. (Line 5 of Form 8288, Rev 2023.)Line 5 - Amount realized on the transfer. (5a that is edited next to Line 5.)Line 6b - Withholding at a reduced amount. (Line 6b is edited to 5c.)Line 7 amount withheld. (Edited to Line 6.)This exhibit illustrates the transcription lines on Form 8288, February 2013 Revision Part II. A letter T appears in the following places:The Part Number is edited in the Left outside margin of the Part II box.Name of entity of fiduciary responsible on Line 1, Row 1. (Line 1a of Form 8288, Rev 2023.) Also see Part I bullets 5-9 for additional T- Lines not shown in Part II Line 1 of this Exhibit.Identifying Number appears on Line 1, Row 1 at the end of the row. (Line 1b US TIN of Form 8288, Rev 2023.)The Computer Condition Code is edited in the left outside middle margin of Line 2.The Property Description appears on the first two rows of Line 2.The Date of Transfer appears on Line 3. (MMDDYYYY)Next to Line 3 of the 2013 version of Form 8288, Line 4 is added (MMDDYYYY) for the Date of withholding certificate. (Line 4 Form 8288, Rev 2023.)Line 4 - Number of 8288-A attached. Line 5a amount subject to withholding at 35%. (Edited as Line 5c.) Line 5b amount subject to withholding at 10%. Line 5c amount subject to withholding at a reduced rate%. (Edited as Line 5d.) Line 5d Large trust election to withhold at distribution. (Edited as Line 5e.)Line 6 Total amount withheld.The Bypass Indicator is edited in the outside right margin of Part II, Line 6. (Line 12 of Form 8288, Rev 2023.)Signature - bottom left side of Form.PTIN - bottom right side of Form.Firm EIN - bottom right side of Form.Phone number - bottom right side of Form.

Glossary and Acronyms

1. Taxpayer records
2. Representative records

• Date of Death
• Department of Defense

• Personal Property Rental
• Payment Plan Request

• Prior Year
• Processing Year

• Special Processing Code
• Submission Processing Center