IRM 3.11.14 — Income Tax Returns for Estates and Trusts (Forms 1041, 1041-QFT, and 1041-N)

# Part 3. Submission Processing

Chapter 11. Returns and Documents Analysis Section 14. Income Tax Returns for Estates and Trusts (Forms 1041, 1041-QFT, and 1041-N) 3.11.14 Income Tax Returns for Estates and Trusts (Forms 1041, 1041-QFT, and 1041-N) Manual Transmittal October 27, 2025 Purpose (1) This transmits revised IRM 3.11.14, Returns and Documents Analysis, Income Tax Returns for Estates and Trusts, (Form 1041, Form 1041-QFT, and Form 1041-N). Material Changes (1) Signature - Updated (2) IRM 3.11.14.1.2(2) - Updated the IRM reference for Servicewide Policies and Authorities. (3) IRM 3.11.14.2.1 Schedules/Forms Associated with Form 1041 (2) - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (IPU 25U3611 issued 09-23-2025) (4) IRM 3.11.14.2.10≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (IPU 25U3611 issued 09-23-2025) (5) IRM 3.11.14.1.3 Title - Updated the Title to Roles and Responsibilities. (6) IRM 3.11.14.1.6 Title - Updated the Title to Terms and Acronyms. (7) IRM 3.11.14.2.4.1(2) - Corrected the Taxpayer Advocate Service (TAS) Service Level Agreements link. (IPU 25U0260 issued 02-24-2025) (8) IRM 3.11.14.2.5 - Removed subsection per feedback as it does not apply to Form 1041.(IPU 25U3550 issued 08-07-2025) (9) IRM 3.11.14.2.5 - Added subsection for Religious Exemption procedures based on feedback from Office of Servicewide Penalties. (IPU 25U3419 issued 06-20-2025) (10) IRM 3.11.14.3 General Editing Guidelines (4) - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (IPU 25U3611 issued 09-23-2025) (11) IRM 3.11.14.3.3(1) - Added new Forms and Schedules to the sequencing of Form 1041. (12) IRM 3.11.14.3.3 Sequence - Form 1041 (2) - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (IPU 25U3611 issued 09-23-2025) (13) IRM 3.11.14.4(6) - Updated Action Codes to clarify information. (IPU 25U0260 issued 02-24-2025) (14) IRM 3.11.14.4(8) - Updated Action Codes to clarify information. (IPU 25U0260 issued 02-24-2025) (15) IRM 3.11.14.4(8) - Removed the Note about Form 8913 under Action Code 420, Management Suspense A. (IPU 25U0260 issued 02-24-2025) (16) IRM 3.11.14.6.3.5(2) - Removed the link and policy because this expired. (17) IRM 3.11.14.8.1(1) - Changed the date to be through 201911 rather than later. (18) IRM 3.11.14.8.8(2) CCC "J" - Section 965 TAX- Added NOTE. (19) IRM 3.11.14.8.18(1) - Updated photocopy instructions to be pages 1-3 of Form 1041. (20) IRM 3.11.14.8.21(1) - Changed the Tax Year to 2022 for Form 8938, Statement of Specified Foreign Financial Assets. (IPU 25U0260 issued 02-24-2025 ) (21) IRM 3.11.14.8.24(1) 3rd If/And/Then Box - Removed the see also tag to the figure. (22) IRM 3.11.14.9(2) Note - Updated Note to include instructions on multiple RPCs. (23) IRM 3.11.14.10.1(4) - Added CCC I to the list of acceptable CCC with CCC G. (24) IRM 3.11.14.10.1(6)d Exception - Added an Exception to the Exception list Amended Returns. (25) IRM 3.11.14.10.1♦Amended Returns♦ (7) - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (IPU 25U3611 issued 09-23-2025) (26) IRM 3.11.14.10.2(2) - Updated the 2025 standard deduction amount. (27) IRM 3.11.14.10.2(4) Reminder- Corrected the IRM reference to be 20.1.3.2.7.3. (28) IRM 3.11.14.10.2.2(3)c) - Updated the Exemption/Standard Deduction Chart. (29) IRM 3.11.14.10.6.1(9) - Added IRM reference to the Received Date. (30) IRM 3.11.14.10.6.2(8) - Added IRM reference to the Received Date. (31) IRM 3.11.14.10.7(1) If/Then Table - Added "(whichever is later)" after "return due date" and added a Note defining refund, consistent with the rest of the table. (IPU 25U0260 issued 02-24-2025 ) (32) IRM 3.11.14.10.9 Title- Changed the date to be through 201911 rather than later. (33) IRM 3.11.14.10.9(2) - Added information on IRC 965(i) for Form 1041. (34) IRM 3.11.14.10.9(4) - Added a Caution indicating when CCC J should not be edited. (35) IRM 3.11.14.10.9.1 Title (1) - Added new line number for tax year 2023 and later. (36) IRM 3.11.14.10.11(3) Last bullet - Updated Statute Returns clearing exception from 2021 to 2022. (IPU 25U0260 issued 02-24-2025) (37) IRM 3.11.14.11(2) If/Then Table - Clarified the Private Delivery Service information. (IPU 25U0260 issued 02-24-2025) (38) IRM 3.11.14.13.3(5) Updated exemption amount for TY 2025. (39) IRM 3.11.14.14.3(4) - Added 33 and 99 to the list of EIN prefix. (IPU 25U0260 issued 02-24-2025) (40) IRM 3.11.14.14.4(2) If/Then Table - Changed the "Circle the street address" to "Underline the second street address" per IRM 3.12.14 SERP Feedback #26179. (IPU 25U0260 issued 02-24-2025) (41) IRM 3.11.14.17.2.2(3) Table - Added instruction to recompute Line 9 and 16. (42) IRM 3.11.14.17.2.4(2) Table - Clarified editing instructions. (43) IRM 3.11.14.17.2.7(2) - Updated the Qualified Disability Trust Exemption amount for 2025. (44) IRM 3.11.14.17.3.3(1) - Removed Line 2 from the instruction to now include any lines in column (k). (45) IRM 3.11.14.17.3.6(4) - Added IRM reference to Lines 30a and 30b - Credit Elect/Refund. (46) IRM 3.11.14.17.4 - Added subsection for Direct Deposit information. (47) IRM 3.11.14.22.1.5(2) - Updated editing instructions for Schedule G Line 1e (Tax Year 2023 and prior) to accommodate current ISRP program template. (IPU 25U3567 issued 08-15-2025) (48) IRM 3.11.14.22.1.5(2) - Added instructions to edit Line 1d to Line 1e on Tax Year 2024. (IPU 25U3237 issued 05-01-2025) (49) IRM 3.11.14.22.1.5(2) Changed the Tax Year from 2024 to 2023. (IPU 25U3248 issued 05-05-2025) (50) IRM 3.11.14.22.12.9 Line 18a, Schedule G - Elective Payment Election Amount from Form 3800 (2) - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (IPU 25U3611 issued 09-23-2025) (51) IRM 3.11.14.26.2(1) - Added Tax Period 202512 - 202611 to the table. (52) IRM 3.11.14.26.7(1) - Added Tax Period 202512 - 202611 to the table. (53) IRM 3.11.14.27(3) - Added instructions for Schedule D. (54) IRM 3.11.14.29 - Added subsection for Form 4797 Sales of Business Property procedures based on UWR 1002640. (55) IRM 3.11.14.31 - Added subsection for Schedule C (Form 1040) - Profit or Loss From Business based on UWR 1002640. (56) IRM 3.11.14.32 - Added subsection for Schedule E (Form 1040) - Supplemental Income and Loss based on UWR 1002640. (57) IRM 3.11.14.33 - Added subsection for Schedule F (Form 1040) - Profit or Loss From Farming based on UWR 1002640. (58) IRM 3.11.14.34(3), (4) - Changed the Columns from (d) to (e) and from (e) to (f) per 4136 WRN. (59) IRM 3.11.14.39 Form 3800 - General Business Credit (3) - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (IPU 25U3611 issued 09-23-2025) (60) IRM 3.11.14.39.2(2) - Changed Line 1a to Line 1b. (61) IRM 3.11.14.39.6(1) - Changed the title to Renewable Electricity Production Credit. (62) IRM 3.11.14.39.17 (3) - Changed Line 1p to Line 1q. (63) IRM 3.11.14.39.18(2) - Clarified the valid years for Line 1r. (64) IRM 3.11.14.39.21(2) - Changed Line 1s to Line 1u. (65) IRM 3.11.14.39.22(3) - Changed Form 7213 to be Form 3468 Part V. (66) IRM 3.11.14.39.22(3) If/Then Box - Changed Form 7213 to be Form 3468. (67) IRM 3.11.14.39.25(2) - Added Part II for clarification and consistency. (68) IRM 3.11.14.39.26(2) - Added paragraph for the valid years for Line 1z. (69) IRM 3.11.14.39.27(3) - Added Part V for clarification and consistency. (70) IRM 3.11.14.39.33(3) - Removed Line 13 and replaced it with Part II. (71) IRM 3.11.14.39.34(2) - Corrected the name of the credit in the bullet list. (72) IRM 3.11.14.39.36 Title - Updated the title to Part VI. (73) IRM 3.11.14.39.39(2) - Changed Form 8886 to Form 8586. (74) IRM 3.11.14.39.40 (2) - Changed Line 4a to be Line 4e. (75) IRM 3.11.14.41 - Added subsection for Form 8283 Noncash Charitable Contributions procedures based on UWR 1002640. (76) IRM 3.11.14.39.45(2) 3rd Exception - Changed Line 4i to be Line 4j. (77) IRM 3.11.14.39.46(2) - Added Part VII for clarification and consistency. (78) IRM 3.11.14.39.47(1) - Changed Form 3468 to be Form 3800. (79) IRM 3.11.14.39.48 Title - Removed Lines 1-38 from the title. (80) IRM 3.11.14.45(5) If/And/Then Table - Clarified research instructions. (81) IRM 3.11.14.45.3(3)(a) Note - Updated to the correct job aid number. (IPU 25U3567 issued 08-15-2025) (82) IRM 3.11.14.45.3(3) a) - Updated the transfer lines for Tax Year 2025. (83) IRM 3.11.14.47.1.2.1(5) - Updated the Qualified Disability Trust Exemption amount for 2025. (84) IRM 3.11.14.47.1.3.5(2) - Changed the IRM reference title to Tax Period 202112 and later - Line 25 and Line 15, Schedule G, Form 1041 (Line 19 Form 1041-N). (85) IRM 3.11.14.48.2.2(1) - Updated the table for Tax Year 2023 prior year instructions. (IPU 25U3567 issued 08-15-2025) (86) IRM 3.11.14.48.2.2(1) - Added a table to include instructions to transcribe Line 1d to Line 1e on Tax Year 2024 per SERP Feedback 29708. (IPU 25U3232 issued 04-30-2025) (87) IRM 3.11.14.48.2.2(1) - Corrected table to transcribe Line 1d to Line 1e on Tax Year 2024 rather than 2023. (IPU 25U3237 issued 05-01-2025) (88) IRM 3.11.14.48.2.2 (1) - Changed the Tax Year from 2024 to 2023. (IPU 25U3248 issued 05-05-2025) (89) IRM 3.11.14.48.2.2(1) - Added a table to include instructions to transcribe Line 1d to Line 1e on Tax Year 2024 per SERP Feedback #29708. (IPU 25U3248 issued 05-05-2025) (90) IRM 3.11.14.49(3) - Made the following changes to the Routing Guide for Attachments: Schedule C - Added instructions to place this form in sequence order. Schedule E - Added instructions to place this form in sequence order. Schedule F - Added instructions to place this form in sequence order. Schedule K-1 - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (IPU 25U3611 issued 09-23-2025) Form 2439 - Changed Line 16a to be Line 16. Form 3468 - Changed Part III to be Part II. Form 4136 - Changed Line 16b to be Line 17. Form 4255 - Changed Line 6 to be Line 6a Schedule G also added support for Line 1d, Schedule G. Form 4797 - Added instructions to place this form in sequence order. Form 6765 - Changed Line 40 to be line 32. Form 7218 - Changed Line 1g to be Line 1q. Form 8283 - Added instructions to place this form in sequence order. Form 8847 - Changed Line 1y to be Line 1zz. Form 8861 - Changed Line 1b to be Line 1zz. Form 8881 - Changed Line 11 to be Line 8. Form 8908 - Changed Line 4 to be Line 8. Form 8909 - Changed Line 1n to be Line 1zz. Form 8911 - Changed Line 9 to be Line 3. Form 8933 - Changed Line 11 to be Line 9. Form 8936 - Changed Line 14 to be Line 8. Also added Line 21, Part V - Support for Form 3800, Line 1aa. Form 8949 - Removed support for Line 4h. (91) Exhibit 3.11.14-10 - Updated Acronyms and Abbreviations to include Mod IEIN. (IPU 25U0260 issued 02-24-2025) (92) Revised the IRM, where necessary, for the following types of editorial changes: Tax Years, received dates, and return due dates annual updates Plain language, simpler words Spelling, grammar, and formatting IRM references, citations, and links IRM graphics and alternative text Minor editorial changes (e.g., line number updates and Form Titles updates per Work Request Notifications (WRNS), spelling, punctuation, links, etc.) Effect on Other Documents IRM 3.11.14 dated November 07, 2024 (effective 01-01-2025), is superseded. This IRM incorporates the following IRM Procedural Updates (IPUs): 25U0260 issued February 24, 2025, 25U3232 issued April 30, 2025, 25U3237 issued May 1, 2025, 25U3248 issued May 5, 2025, 25U3419 issued June 20, 2025, 25U3550 issued August 7, 2025, 25U3567 issued August 15, 2025, and 25U3611 issued September 23, 2025. Audience Taxpayer Service (TS) Code and Edit Tax Examiners Effective Date (01-01-2026) Scott Wallace Director, Submission Processing Taxpayer Service

# Program Scope and Objectives

3.11.14.1 (01-01-2025) Program Scope and Objectives The purpose of Document Perfection is to code and perfect (edit) documents being input to the Automated Data Processing (ADP) System to make them adaptable to computer processing and to recognize and properly dispose of accompanying attachments. Special codes are entered into the computer to perform specific functions. Instructions in this IRM are for a typical return. Apply the instructions as far as possible when a situation is not explained. In case of a conflict of instructions between this general sub-section and the subsequent specific sub-section, the specific sub-section will govern. Numerical listings (e.g., (1), (2)) show paragraph numbers to be followed in order. Alpha and bullet listings (e.g., a., b., c.) show instructions or information that is important but the order in which they are to be considered is not important. This IRM cannot address every possibility that will arise while correcting returns or documents. Taxpayer intent must be taken into consideration. In some cases, it will be necessary to refer the issue to your Subject Matter Expert (SME), lead and/or manager to decide the proper editing. IRM 3.11.14 gives Code & Edit (C&E) procedures for the following returns and their related Schedules and Forms: Form 1041 (U.S. Income Tax Return for Estates and Trusts). Form 1041-QFT (U.S. Income Tax Return for Qualified Funeral Trusts). Form 1041-N (U.S. Income Tax Return for Electing Alaska Native Settlement Trusts (ANST)). Form 1041 is used by a fiduciary of a domestic estate, trust, or bankruptcy estate to report the following: Income received and expenses incurred during the taxable period by the estate or trust. Income that is either accumulated or held for future distribution or distributed currently to the beneficiaries. Any applicable tax liability of the fiduciary. Audience - These IRM procedures apply to employees responsible for coding and editing returns: Clerks Lead Clerk Supervisory Clerk Tax Examining Technicians Lead Tax Examining Technicians Supervisory Tax Technicians. Policy Owner - The Director of Submission Processing. Program Owner - The Return Processing Branch, Business Master File (BMF) section. Primary Stakeholders - Accounts Management (AM), Small Business/Self-Employed (SBSE), Large Business and International (LB&I), Chief Financial Officer (CFO), Taxpayer Advocate (TAS), Chief Counsel, Information Technology programmers, Statistics of Income (SOI), Tax Exempt/Government Entities (TEGE), Compliance, Modernized E-file (MeF), Submission Processing (SP) Form 1041-QFT was added to the Internal Revenue Code by the Taxpayer Relief Act of 1997 to permit certain trusts which previously filed Form 1041 as Grantor Trusts to elect Qualified Funeral Trust status. See IRM 3.11.14.46, Form 1041-QFT, U.S. Income tax Return for Qualified Funeral Trusts, for detailed instructions. All Domestic Forms 1041-QFT will be processed at the Kansas City Submission Processing Campus (KCSPC) and all International Forms 1041-QFT will be processed at the Ogden Submission Processing Campus (OSPC). Exception: Domestic Forms 1041-QFT that are erroneously sent to Ogden will be processed in Ogden. Form 1041-N was added by IRC 671 of the Economic Growth and Tax Relief Reconciliation Act of 2001. AllForm 1041-N will be processed at the Ogden Submission Processing Campus (OSPC) only. See IRM 3.11.14.47, Form 1041-N, U.S. Income Tax Return for Electing Alaska Native Settlements, for detailed instructions.

# Background

3.11.14.1.1 (01-01-2025) Background The purpose of Document Perfection is to code and edit (perfect) returns and other documents for input to the Master File (MF) through the Integrated Submission and Remittance Processing System (ISRP) or the Service Center Recognition Image Processing System (SCRIPS). In addition, Document Perfection forwards any other documents or attachments not related to the processing of the returns to the function responsible for handling them. It is not the purpose of Code and Edit to mathematically verify or to check the validity of the returns and other documents being processed unless otherwise specified in the applicable subsection. The computer and/or Error Correction (Resolution) will perform these functions if the returns and other documents are coded and edited as prescribed in the applicable subsections. While working assigned cases, Submission Processing (SP) employees will come across some that are blocked on IDRS and is shown by an IDRS security violation message, "Unauthorized Access to This Account". Forward the return to your manager. Managers will notify the local Planning and Analysis (P&A) Staff who will scan the case and send encrypted information to the "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" mailbox requesting access to the account. Managers will retain the original case in a file awaiting access (can take up to 5 business days). Once notified access was granted, the case is worked following applicable procedures. All employees must do their due diligence to protect the privacy of sensitive data for taxpayers, including personally identifiable information (PII), such as Federal Tax Information (FTI, hereafter called tax information), tax return, financial, and employment information regardless of format from unauthorized disclosure.

# Authority

3.11.14.1.2 (01-01-2026) Authority The Internal Revenue Code of 1986 or more commonly known as the Internal Revenue Code (IRC) is the authority for these procedures. Treasury/IRS rules and regulations interpret the law. The IRC was amended by acts and public laws such as the following: The Protecting Americans from Tax Hikes (PATH) Act Hiring Incentives to Restore Employment (HIRE) Act Consolidated Appropriations Act (Extenders) American Taxpayer Relief Act (ATRA) Health Care and Education Reconciliation Act Patient Protection and Affordable Care Act (ACA) Foreign Account Tax Compliance Act (FATCA) Revenue Reconciliation Act of 1998 (RRA 98) Public Law (PL) 114-41, of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, changed the return due dates for returns of partnerships, and C corporations. Note: The above list will not be all inclusive of the various updates to the IRC. All Policy Statements for Submission Processing are contained in IRM 1.2, Servicewide Policies and Authorities, Policy Statements for Submission Processing Activities. The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For more information about the TBOR, see https://www.irs.gov/taxpayer-bill-of-rights. The TBOR requires the IRS to protect taxpayer rights to privacy and confidentiality.

# Roles and Responsibilities

3.11.14.1.3 (01-01-2026) Roles and Responsibilities The Director of the Submission Processing Campus (SPC) is responsible for monitoring operational performance for that SPC. The Operations Manager is responsible for monitoring operational performance for their operation. The team manager/lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties. The team employees are responsible to follow the instructions contained in this IRM and maintain updated IRM procedures. All employees are responsible for protecting the privacy and security of our taxpayers sensitive information which is one of IRS's highest priorities.

# Program Management and Review

3.11.14.1.4 (11-07-2017) Program Management and Review Ensure documents are coded and edited ready for transcription. Program Reports - Batch Block Tracking System (BBTS) Report. Program Effectiveness - is measured by the following: Embedded Quality Submission Processing (EQSP) Balanced Measures Managerial reviews Annual Review: is done by the Federal Managers Financial Integrity Act (FMFIA) review.

# Program Controls

3.11.14.1.5 (11-07-2017) Program Controls Quality Review conducts a statistically valid sample size review of completed work to ensure IRM guidelines are followed.

# Terms and Acronyms

3.11.14.1.6 (01-01-2026) Terms and Acronyms The following is a table of interpretation words that need clarification: Word Definition Example of using a word that is open to interpretation (This column is for illustration purposes only) Fair Give accurate and professional service to all persons without regard to personal bias. Treat the customer in a fair manner when working with FOIA requests. T/C In form exhibits a T/C shows the line as transcribed and computed during processing. See Exhibit 3.11.14-1, Form 1041 Transcription Lines, Line 9. Timely Give the time frame to consider what is or is not timely. Process all IMF adjustments in a timely fashion. Usually Give the exceptions when something is not required or what would create the unusual circumstance. Pay adjustments will be accomplished within a reasonable amount of time, usually within two (2) pay periods. There are specific terms used when dealing with estates and trusts. See below: Description Definition Beneficiary A person designated as the recipient of funds or other property under a trust or an estate. Corpus The principal sum or capital of a trust or an estate, as distinguished from interest or income. Decedent Estate A legal entity created as the result of a person's death. The estate consists of the real and/or personal property of the deceased person. The estate pays any debts owed by the decedent and then distributes the balance of the estate's assets to the beneficiaries of the estate. Exemption Amounts Decided based on whether the fiduciary is filing for a decedent's estate or trust. Exemption amounts are claimed on Line 21 of Form 1041. Fiduciary Trustee of a trust; or executor, executrix, administrator, administratrix, personal representative, or person in possession of property of a decedent's estate. Maker, Grantor, etc. The person/organization to the extent such person /organization either creates a trust, or directly or indirectly makes a gratuitous transfer to the trust. Trust A legal entity created under state law and taxed under federal law. The trust is created either under a will or inter vivos action. There are many types of trusts as shown in the following: Description Definition Simple Trust When the trust instrument requires that all income be distributed currently, with no authority to make charitable contributions, and the trust doesn't distribute amounts allocated to the corpus of the trust. Note: A trust is a Simple Trust only for the year in which it distributes income and makes no other distributions to beneficiaries. For a year when the trust doesn't meet these requirements, it is a "Complex Trust." Complex Trust A trust which, for the taxable year, doesn't qualify as a Simple Trust. Grantor Trust A trust in which the grantor retains certain powers of ownership or benefits. In general, a grantor trust is ignored for tax purposes and all income, deductions, etc., from the trust is taxable Income of the grantor. Grantor Trusts (Non-Taxable) Report Income, Deductions, and Credits on Form 1040. Grantor Trusts (Partially Taxable) Report Income, Deductions, and Credits on Form 1041. Ancillary and Domiciliary Trust A trust which exists in a foreign state because the grantor is domiciled (resides) in another state. Clifford Trust A grantor type trust where the assets are placed in a trust but there is still some ownership taxable to the grantor. Conservatorship A trust (not an estate) which is usually set up for an incompetent person (Not necessarily a trust for tax purposes). Generation Skipping Trust A trust with beneficiaries who are more than one generation younger than the grantor's generation. Guardianship/Custodianship A trust usually set up for a minor (Not necessarily a trust for tax purposes). Inter Vivos Trust Established by a grantor during the grantor's lifetime. Irrevocable Trust The grantor or non-adverse party doesn't have power to revoke the trust. The trust will pay all taxes unless the grantor retains other powers of ownership or benefit. The trust cannot be revoked or amended. Non-Explicit Trust An arrangement that has substantially the same effect as a trust will be treated as a trust even though it is not an explicit trust. Examples of such arrangements are insurance and annuity contracts, arrangements involving life estates and remainders. Non-Explicit Trusts do not add Decedent's Estate. Pooled Income Fund A fund maintained by a public charity which gives contributors to the fund with an income interest for life with remainder to the public charity. QTIP Trust A trust established, whether during life or at death, for the benefit of the grantor's or decedent's spouse that qualifies for the gift or estate tax marital deduction as qualified terminable interest property described in IRC 2523(f) (gift tax) or IRC 2056(b)(7) (estate tax). Qualified Disability Trust A qualified disability trust is normally a trust set up for a person that qualifies under the Social Security Act as being 100% disabled. The trust is entitled to a larger exemption than a simple or complex trust. Qualified/Pre-Need Funeral Trust A trust which has elected to be taxed as a qualified funeral trust. Normally, one Form 1041-QFT will be filed in lieu of one or more Form 1041. However, if Form 1041 is received with the notation "QUALIFIED FUNERAL TRUST" , "PRE-NEED FUNERAL TRUST" , etc., process as a Form 1041 filed for a Grantor Trust. Residual Trust Established under the terms of the will to receive that part of an estate that remains after the payment of all debts, charges, devises, and specific and pecuniary bequests. Revocable Trust The grantor or a non-adverse party has power to revoke the trust. The grantor of the trust will pay the taxes of the trust on their Form 1040 return. The trustee will file Form 1041 return for Information Only purposes unless they select an optional filing method. Testamentary Trust Set forth or contained in a Will or a formal declaration of a person's wishes as to the disposition of the property after their death. A paper, instrument, document, gift, appointment, etc., is said to be testamentary when it is written or made so as not to take effect until after the death of the person making it, and to be revocable and retain the property under their control during their life, although they will have believed that it would operate as an instrument of a different character. Trust Under the Will The same as a Testamentary Trust. There are many types of estates, as shown below: Description Definition Ancillary and Domiciliary Estate An estate which exists in a foreign state because the taxpayer resided in another state at the time of death. Bankruptcy Estate A separate and distinct taxable entity from the individual debtor created when an individual debtor files for bankruptcy under Chapter 7 or 11. This creates a separate estate consisting of property that belongs to the debtor prior to the filing date. Decedent's Estate Estate of a deceased person that is a taxable entity separate from the decedent. It exists until the final distribution of the assets are made to the heirs and other beneficiaries. Probate Estate The same as an Estate Entity. Probating an estate in court is done to establish that the Will is authentic or valid. See Exhibit 3.11.14-10, Acronyms and Abbreviations, for a list of common acronyms.

# Related Resources

3.11.14.1.7 (01-01-2022) Related Resources Here are other websites used in accomplishing the work: Servicewide Electronic Research Program (SERP) Submission Processing Design Center (SPDC) Integrated Data Retrieval System (IDRS)

# General Information

3.11.14.2 (01-01-2022) General Information This IRM can't address every possibility that occurs while perfecting returns or documents. Take taxpayer intent into consideration. Refer issues not addressed in this IRM to the subject matter expert (SME), Lead or manager to decide the proper editing.

# Schedules/Forms Associated with Form 1041

3.11.14.2.1 (09-23-2025) Schedules/Forms Associated with Form 1041 The following schedules are found within Form 1041: Schedule A (Charitable Deductions) - Used by a trust that claims a contribution deduction under IRC 642(c), or by a trust described in IRC 4947(a)(2). Schedule B (Income Distribution Deduction). Schedule G (Tax Computation). Listed below are other schedules and forms which will be filed with Form 1041: Form 1040 Schedule C, Profit or Loss from Business (Sole Proprietorship) Form 1040 Schedule E, Supplemental Income and Loss Form 1040 Schedule F, Profit or Loss from Farming Form 1040 Schedule H, Household Employment Taxes Form 1041 Schedule D, Capital Gains and Losses Form 1041 Schedule D-1, Continuation Sheet for Schedule D for 201212 and prior years only. Form 1041 Schedule I, Alternative Minimum Tax-Estates and Trusts Form 1041 Schedule J, Accumulation Distribution for Certain Complex Trusts Form 1041 Schedule K-1, Beneficiary's Share of Income, Deductions, Credits, etc., - Used to report each beneficiary's share of the Income, Deductions, Credits, and Alternative Minimum Taxable Income from the estate or trust. Note: ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 1041-A, U.S. Information Return Trust Accumulation of Charitable Amounts - Used by a trust that claims a contribution deduction under IRC 642(c), or by a trust described in IRC 4947(a)(2). Form 1041-ES, Estimated Tax for Estates and Trusts - Used to figure and pay estimated tax for fiduciaries. Form 1041-T, Allocation of Estimated Tax Payments to Beneficiaries - Used by an estate or trust to make an election under IRC 643(g) to allocate an estimated tax payment to beneficiaries. Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts Form 3800, General Business Credit Form 4136, Credit for Federal Tax Paid on Fuels Form 4797, Sale of Business Property Form 4952, Investment Interest Expense Deduction Form 5884-A, Employee Retention Credit for Employers Affected by Qualified Disasters Form 5884-B, New Hire Retention Credit Form 8938, Statement of Specified Foreign Financial Assets Form 8941, Credit for Small Employer Health Insurance Premiums Form 8948, Preparer Explanation for Not Filing Electronically Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts Form 8936 (Schedule A), Clean Vehicle Credit Amount

# ♦Business Master File (BMF) Consistency♦

3.11.14.2.2 (02-12-2024) ♦Business Master File (BMF) Consistency♦ The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Code and Edit (C&E) processing IRMs. Topics for BMF Consistency have been shown and developed as a coordinated effort between Ogden, Kansas City, and Return Processing Branch BMF C&E / Error Resolution Systems (ERS). BMF Consistency subsections are shown by a ♦ (diamond) in front of and after the title. 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.

# ♦IRM Deviation Procedures♦

3.11.14.2.3 (04-10-2024) ♦IRM Deviation Procedures♦ IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2.3, When Procedures Deviate from the IRM, and elevated through proper channels for executive approval.

# ♦Taxpayer Advocate Service (TAS)♦

3.11.14.2.4 (01-01-2025) ♦Taxpayer Advocate Service (TAS)♦ 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 must. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico. TAS uses Form 12412, Operations Assistance Request (OAR), to start the OAR process of referring a case to the Taxpayer Services Division, to affect the resolution of the taxpayer's problem. For more information, refer to IRM 13.1.19, Taxpayer Advocate Service, Taxpayer Advocate Case Procedures, Advocating with Operations Assistance Requests (OARs). Refer taxpayers to TAS when the contact meets TAS criteria or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order) is attached, and steps can't be taken to resolve the taxpayer's issue the same day. The definition of "same day resolution" is within 24 hours. The following two situations meet the definition of "same day resolution": The issue is resolved within 24 hours. IRS takes steps within 24 hours to resolve the taxpayer's issue. When making a TAS referral, use Form 911, and forward to TAS following your local procedures. IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for more information.

# ♦TAS Service Level Agreements (SLA)♦

3.11.14.2.4.1 (02-24-2025) ♦TAS Service Level Agreements (SLA)♦ The National Taxpayer Advocate reached agreements with the Commissioners of the Taxpayer Services (TS) Division, Small Business/Self-Employed (SB/SE) Division, Tax Exempt Government Entities (TE/GE), Criminal Investigation (CI), Appeals and Large Business and International (LB&I), that outline the procedures and responsibilities for processing Taxpayer Advocate (TAS) casework when either the statutory or delegated authority to complete a case transaction rests outside of TAS. These agreements are known as Service Level Agreements (SLAs). The SLAs are found at TAS Service Level Agreements.

# ♦Business Master File (BMF) Identification (ID) Theft♦

3.11.14.2.5 (02-12-2024) ♦Business Master File (BMF) Identification (ID) Theft♦ BMF Identification (ID) Theft is increasing. If a case is found with attachments or correspondence showing the taxpayer is a victim of ID Theft, give the entire case to the manager/lead. The manager/lead will expedite the case to the Planning and Analysis (P&A) staff for referral to one of the Submission Processing (SP) BMF ID Theft liaisons. The taxpayer must show that they are a victim of "ID Theft" ; do not send cases that are subject to Criminal Investigation (CI), Examination (Exam) or Fraud review. Effective January 1, 2017, Computer Condition Code "E" will be edited on Form 1041, (only), for any year after the SP BMF ID Theft Liaison finds a potential identity theft filing.

# ♦Foreign Currency♦

3.11.14.2.6 (01-01-2022) ♦Foreign Currency♦ For returns completed in other than U.S. currency, process as filed. However, if corresponding for missing/incomplete item(s), add in the letter to resubmit in U.S. currency.

# ♦Protective Claims♦

3.11.14.2.7 (01-01-2016) ♦Protective Claims♦ Returns marked as "Protective Claim," "Protective Refund" , "Protective Claim for Refund" , or similar statement will be removed from the batch and routed to Accounts Management (AM). Notate "Protective Claim" in the remarks box of Form 4227, Intra-SC Reject or Routing Slip. Note: If the return is amended, do not remove from batch. Edit Computer Condition Code "G" and follow normal processing procedures.

# ♦Criminal Investigation (CI) Referrals♦

3.11.14.2.8 (01-01-2023) ♦Criminal Investigation (CI) Referrals♦ Criminal Investigation (CI) investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC are willful attempts to evade or defeat the income tax. Flagrant criminal activity is, but is not limited to, the failure to pay taxes due and/or taxes collected or withheld and false claims for refunds based on bogus return information. For returns with refund claims of ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more, do the following: Refund Claim Kansas City, and Ogden ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Make a copy of the first two pages of the tax return along with any pages of the return that appears suspicious. Attach Form 4227, Intra-SC Reject or Routing Slip, to the copy. Route the copy to: Ogden, Mail Stop 9001, Criminal Investigation (CI). Staple a post-it notes with the notation of "Copy to CI" , or "CI Referral" , or similar language in the lower left corner side of the return. See IRM 3.11.14.10.7, Refund Returns (45 Day Jeopardy and High Dollar Refunds). Edit AC 341 on the return. Continue processing the return. Because of the repetitive nature of the Code and Edit (C&E) function, C&E Tax Examining technicians often recognize income tax return data which is outside of the norm for data found on similar returns for each income tax return type. If C&E finds return characteristics not meeting Audit Code or Exam referral criteria it deems suspicious, CI is available to review the referral. If a suspicious return is found, do the following: Make a copy of the first two pages of the tax return along with any page of the return that appears suspicious. Attach Form 4227, Intra-SC Reject or Routing Slip, to the copy. Route the copy as shown in the table below. Ogden Kansas City Mail Stop 9001, Criminal Investigation (CI) Internal Revenue Service 1973 North Rulon White Blvd. Mail Stop 9001 Criminal Investigation (CI) Ogden, UT 84404 Edit "Copy to CI" , or "CI Referral" , or similar language in the lower left corner going vertically up the side of the return. Continue processing the return. If the return fits other criteria (e.g., Frivolous Argument), edit the return properly.

# ♦Examination (Exam) "Funny Box" ♦

3.11.14.2.9 (01-01-2022) ♦Examination (Exam) "Funny Box" ♦ The primary objective in identifying tax returns for examination is to promote the highest degree of voluntary compliance. Examination will give support and assist Submission Processing (SP) with any questionable return shown during processing. Exam has a vast multitude of programs and tolerance criteria already shown in various IRM sections. Exam doesn't restrict SP with the flexibility to refer questionable returns other than what is currently shown in various IRMs. Some returns will need special care. If the withholding is≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, attach Form 4227 and place in the locally designated basket for Examination, Frivolous Return Program (FRP) for review. Pay particular attention to returns with Form 1099-OID attached.

# ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.11.14.2.10 (09-23-2025) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# General Editing Guidelines

3.11.14.3 (01-01-2026) General Editing Guidelines The general editing guidelines in this subsection are used to edit: Form 1041, U.S. Income Tax Returns for Estates or Trusts. Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts. See IRM 3.11.14.46, Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts, paragraphs (1) through (8) for more information prior to editing the return. IRM 3.11.14.47, Form 1041-N, U.S. Income Tax Return for Electing Alaska Native Settlement Trusts, paragraphs (1) through (5) for more information prior to editing the return. General instructions eliminate repetition of the same instructions for each return. If the general instructions and the specific instructions conflict, follow the specific instructions. Do not edit brackets or parentheses around amounts clearly shown to be negative by the presence of a minus sign (-). Reminder: It will be necessary to bracket negative amounts when editing negative entries on transcription lines (i.e., computing and entering a line entry, entering a missing line entry, etc.,) Instructions for editing Schedules K-1 are in IRM 3.0.101, Schedule K-1 Processing. ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Received date is edited in MMDDYY format. If a return is filed on a tax form for other than the correct tax year, convert the tax return to the current year format. See IRM 3.11.14.48, Prior Year Returns - Form 1041. If a current year 2025 return is filed on a 2000 - 2024 tax form, renumber the prior year return to comply with current year line numbers. If a return is filed on a correct/incorrect 2024 and prior tax form, renumber the prior year return to comply with current year 2025 line numbers. If a current year (2025) form is used to report prior year tax information, edit the tax period to reflect the prior year.

# Examination of Attachments

3.11.14.3.1 (01-01-2025) Examination of Attachments All attachments to the return being processed will be examined and edited as required by the attachment. When an attachment influences the document being processed, it will remain attached unless a specific instruction requires that it be detached. Notate any editing on Form 1041, Form 1041-QFT, and/or Form 1041-N regarding attachments, photocopying, etc., to leave a working trail. Edit the Working Trail(s) in the lower left corner going vertically up the side of the return. Refer to the Campus Mail Routing Guide for proper disposition of attachments not found in the Routing Guide for Attachments. See IRM 3.11.14.49, Routing Guide for Attachments. If the document to be detached has any information that is pertinent to the return being processed, photocopy or transfer the data to a blank piece of paper and attach it to the return. Forward any attachment requesting an adjustment or correspondence to Accounts Management Branch via Form 4227.

# ♦Edit Marks♦

3.11.14.3.2 (01-01-2025) ♦Edit Marks♦ Edit marks are edited on the return for transcription to the Automatic Data Processing (ADP) System through the Integrated Submission and Remittance Processing (ISRP) system. Enter edit marks in brown, red, orange, purple, or green. Only edit items on the return that are for transcription except where specific instructions require editing of a non-transcribed item. Leave lines blank if the entry would be a zero amount unless otherwise instructed. Do not obliterate, alter, or erase the original entry on a return when deleting or correcting an entry. Always exercise care to ensure that the original entry remains legible. Perfected entries give a legible "edit trail" for anyone who will work with the return later. 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. Do not edit (or write) over another area's edit marks. Exception: Photocopied Returns. Photocopied Returns - Re-edit or underline any valid, black edit marks. See IRM 3.11.14.6.3.3, Correspondence Imaging Inventory (CII) Returns and IRM 3.11.14.10.6, Re-Entry Document Procedures. For a description of specific edit marks, see the table below: Edit Marks Description "X" Deletes tax data or shows do not transcribe an item. For example, if deleting an original entry, edit an "X" to the left of the entry to delete. Edit the correct entry to the left or above the "X." "/" Shows do not transcribe a form or schedule. "//$" Finds the beginning and ending of a foreign country code in the entity area. For example, "/EI/$" is edited for "Ireland" or "/GM/$" is edited for "Germany." "c/o" or "%" Shows an "in-care-of-name" for transcription. Circle Shows do not transcribe an entry. Also, deletes entity data or a Received Date. Note: If the taxpayer circles an entry, edit the entry. Underline Finds an entry for transcription (e.g., Name Control, Tax Period, etc.). Arrow Shows the correct placement of a misplaced entry. Use an arrow if the misplaced item is close to the correct line and there is no question where the entry belongs. 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). Check Mark Shows that an entry was manually math verified and is correct, or that the Fiduciary's Employer Identification Number (EIN) needs to be transcribed. Bracket/Parenthesis Shows a negative numerical amount. Note: Code and Edit (C&E) is not required to bracket negative amounts when brackets are preprinted on the form or schedule or when the taxpayer clearly shows a negative amount with brackets () or "-" sign. Bracket negative amounts when editing negative entries on transcription lines (e.g., computing and entering a line entry, entering a missing line entry, etc.). Vertical Line or Decimal Point Shows the separation of dollars and cents. Note: C&E is no longer required to edit a vertical line, 00, dash, or decimal point to show dollar and cents. Zero, Dash, None or N/A "ZERO" , "DASH" , "NONE" or "N/A" are valid entries except when specific instructions require editing of an entry. Rocker Shows the amount paid when drawn under a remittance amount.

# Sequence - Form 1041

3.11.14.3.3 (01-01-2026) Sequence - Form 1041 Document Perfection is responsible for arranging Form 1041 in the following order when transcription line entries are present: Pages 1, 2, and 3 Schedule I (Form 1041) Form 4952 Schedule H (Form 1040) Schedule D (Form 1041) Form 8949 valid for 2017 and later. Form 4797 Form 8995 or Form 8995-A valid for 2019 and later. Schedule C (Form 1040) Schedule E (Form 1040) Schedule F (Form 1040) Form 4136 Form 8978 valid for 2017 and later. Form 965-A valid for 2017 and later. Form 8941 Form 5884-B not valid for 2012 and later. Form 3800 Form 8997 valid for 2021 and later. Form 8283 Form 8960 Form 8936 (Schedule A) valid for 2023 and later. Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties. Valid for Tax Period 202312 and later. Note: It is not necessary to sequence the forms and/or schedules if there are no transcription line entries, including forms with the entity section only filled in. There's no need to X forms and/or schedules not in sequence order. Below are more instructions: Form 1041 Schedule D-1, Pages 1 and 2 must be moved out of the sequence order for Form 1041 on 201212 and prior year returns only. Schedule D-1 is no longer valid. "X" any prior year Schedule I that supports Form 8801 (Schedule G, Line 2c*). See IRM 3.11.14.22.2.3(2), Line 2c, Schedule G - Credit for Prior Year Minimum Tax (Form 8801). *(Line 2d for 2009 and prior see IRM 3.11.14.22.2.4, Line 2d, Schedule G - Bond Credits). Place all Form 1041 Schedule K-1, filed as attachments to Form 1041, as the last attachment in the package or follow local agreement. Detach current year and prior two year's Schedules K-1 and all future year Schedules K-1. Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Example: Tax years 2023 and later, Form 1041 Schedule K-1. See IRM 3.0.101.5, Code and Edit, for Schedule K-1 procedures.

# Dollar Tolerances

3.11.14.3.4 (01-01-2022) Dollar Tolerances Taxpayers must give documentation to support claims for most gains, losses, debits, and credits ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ Unless otherwise instructed, correspond for documentation to support any claims ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

# Editing Dollars and Cents

3.11.14.3.5 (01-01-2023) Editing Dollars and Cents Form 1041 - Edit forms and schedules as dollars only, except for the following lines which are dollars and cents: Line 24 - Total Tax Line 25 - Net 965 Tax Liability Paid Line 26 - Total Payments Line 27 - Estimated Tax Penalty Line 28/29 - Tax Due/Overpayment Line 30a - Credit Elect Line 30b - Refund Line 10 Schedule G, Part II - Estimated Tax Payments Line 11, Schedule G, Part II - Credit to Beneficiaries Line 13 Schedule G, Part II - Tax Paid With Extension Line 14 Schedule G, Part II - Federal Income Tax Withheld Line 15 Schedule G, Part II - Net 965 Tax Liability Amount Line 16 Schedule G, Part II - Payments from Form 2439 Note: For a display of Form 1041 transcription lines see Exhibit 3.11.14-1, Form 1041 Transcription Lines. Form 1041-QFT - Edit forms and schedules as dollars only, except for the following lines which are dollars and cents: Line 12 - Tax Line 13 - Credits Line 16 - Total Tax Line 17 - Payments Line 18 - Elective Payment Election Amount from Form 3800 Line 20 - Overpayment Line 21a - Credit Elect Line 21b - Refund Note: For a display of Form 1041-QFT transcription lines see Exhibit 3.11.14-2, Form 1041-QFT Transcription Lines. Form 1041-N - Edit forms and schedules as dollars only, except for the following lines which are dollars and cents: Line 14 - Tax Line 15 - Credits Line 16 - Total Tax Line 17 - Net 965 Tax Liability Paid Line 18 - Payments Line 19 - Elective Payment Election Amount from Form 3800 Line 20/21 - Tax Due/Overpayment Line 22 - Credit Elect Line 22b - Refund Note: For a display of Form 1041-N transcription lines see Exhibit 3.11.14-3, Form 1041-N Transcription Lines.

# Significant Entries

3.11.14.3.6 (01-01-2016) Significant Entries Reference is made throughout this IRM to "significant entries." A significant entry is defined as any amount other than zero. Note: Blank, Dash, "None," "N/A," or zero are not significant entries unless otherwise specified.

# ♦Action Codes♦

3.11.14.4 (02-24-2025) ♦Action Codes♦ Action Codes are used to show whether correspondence, research, or some other editing is needed. The Action Code will set the suspense period to be assigned to the return and place the return in the workable or unworkable suspense inventory. When necessary, a three-digit action code will be assigned by the tax examiner. Edit the action code in the bottom left margin of the return. Assign action codes in the following priority order: Action Code 310 (Statute Control) Action Code 320 (Entity Control) Action Code 4XX. Action Code 6XX. Action Code 3XX. Action Code 2XX (Correspondence). Use the following table if more than one Action Code is needed: If Then Action Codes are 211, 215, 225 or 226 and Action Code 341, Edit the Action Code 211, 215, 225 or 226 on the Form 1041. Edit Action Code 341 on the Form 4227, Intra-SC Reject or Routing Slip. Action Codes have the same priority, Edit the Action Code with the shorter suspense period on the Form 1041. Edit the second Action Code on the Form 4227, Intra-SC Reject or Routing Slip. See IRM 3.11.14.4 (8), Action Codes for suspense periods. Action Codes have different priorities, Edit the Action Code with the higher priority on the Form 1041. Exception: Use Action Code 211, 215, 225 or 226 before Action Code 341 to ensure the return is complete before a manual refund is issued. Edit the second Action Code on the Form 4227, Intra-SC Reject or Routing Slip. Edit the following action codes when a return cannot be perfected: Action Code Description 211 - First Correspondence (Missing Information and/or Signature (Refund Returns)) or 215 - First International Correspondence (Missing Information and/or Signature Refund Returns)) Return is illegible, incomplete or contradictory and therefore cannot be processed. The taxpayer notates on the return or attachment that they are reporting tax for more than one Tax Period or for more than one type of tax. 225 - Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns) Unsigned return (only issue for correspondence). 226 - International Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns) Unsigned foreign return (only issue for correspondence). 460 - Management Suspense Section 965, Treatment of Deferred Foreign Income upon Transition to Participation Exemption System of Taxation (Inclusion year 201712 through 201911). 480 - Early Filed Suspense Early filed return. 610 - Renumbered non-remittance or 611 - Renumbered with remittance A return is mis-blocked (e.g., Form 1065 found in a Form 1041 batch of work). 640 - Void To delete the assigned Document Locator Number (DLN) on the return (e.g., re-entry returns). 650 - International An international return that must be forwarded to Ogden Submission Processing Center (OSPC). Continue perfecting the return after editing the action codes. Valid action codes are listed below: Action Code Description Workday Suspense Period 211 First Correspondence (Missing Information and/or Signature (Refund Returns)) 40 212 Second Correspondence 25 215 First International Correspondence (Missing Information and/or Signature (Refund)) 45 216 Second International Correspondence 225 Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns) 40 226 International Correspondence (Signature Only - Balance Due/Zero Balance/Credit Elect Returns) 40 310 Statute Control 10 320 Entity Control 10 331 Frivolous Review 3 341 Manual Refund 10 342 Credit Verification 10 343 Black Liquor 10 352 Name Research 3 360 Other-in-House Research 10 420 Management Suspense A 5 440 Management Suspense C 15 450 Management Suspense D 20 460 Management Suspense E Note: Used for Section 965 identification during the inclusion year. 25 480 Early Filed Suspense 150 610 Renumber Non-remit 0 611 Renumber Remit 0 640 Void 0 650 International 0

# Centralized Authorization File (CAF)

3.11.14.5 (01-01-2025) Centralized Authorization File (CAF) Editing of CAF codes is no longer required. The Centralized Authorization File (CAF) has the type of authorization that the taxpayer gives a representative regarding the taxpayer's account. Representatives will submit Form 2848, Power of Attorney (POA) and Declaration of Representative or Form 8821, Tax Information Authorization (TIA). If Then Form 2848 or Form 8821 attached, Detach the Form 2848 or Form 8821 from the Form 1041. Edit the taxpayer's name and EIN on Form 2848 or Form 8821, if missing. Edit received date on Form 2848 or Form 8821. Route Form 2848 or Form 8821 to CAF function. Edit "Action Trail" in the lower left corner going vertically up the side of the return. A General POA or Durable POA or TIA is submitted on any document other than a Form 2848 or Form 8821, Do not edit. Leave POA or TIA attached to the return. Do not route to the CAF unit.

# Unprocessable Conditions and Correspondence Action

3.11.14.6 (01-01-2025) Unprocessable Conditions and Correspondence Action This subsection details the editing to be taken to resolve unprocessable conditions on Form 1041, Form 1041-QFT and Form 1041-N.

# Unprocessable Conditions

3.11.14.6.1 (01-01-2025) Unprocessable Conditions A return must have specific items before it is considered processable. Perfect all documents to the extent possible from schedules and other attachments. The specific items needed are: An Employer Identification Number (EIN), A legible name (for name control), Valid tax period, Legible tax data, if tax liability is shown, and A signature attesting to the perjury statement Jurat shown on the document. Conditions which make a return unprocessable are: Name so illegible or incomplete that the name control cannot be decided. The EIN or Taxpayer Identification Number (TIN) is other than nine numeric digits and cannot be perfected from information on the return or attachments. The document has two or more different EIN's. Taxpayer has stated they have combined liability for more than one tax period or more than one type of tax. Tax data entries are so incomplete, illegible or contradictory that the tax liability cannot be decided. The return is mis-blocked. The return is unsigned. The return has only entity data and no other statements, attachments from the taxpayer. Any condition set forth as unprocessable in the sections on processing specific documents. If a return has no entity data, or the signature on the return is illegible and the alpha letter of the last name cannot be decided, and the only entries are money amounts, then give the return to the manager. Use the following guidelines for disposition of returns that cannot be perfected from schedules and other attachments and necessary data was not gotten through research. If you cannot correspond or send the return back to the taxpayer because of illegible entity data, consider the return unprocessable: If Then Unnumbered Returns, Remove Form 1041 from the batch. Give the return to the manager. Numbered Returns, Edit Action Code 640 (Void). Prepare a Form 4227 instructing the Rejects function to void the DLN. Forward the return to the Rejects function. If a Form 1041 is received with a second Form 1041 attached and the second return has the same EIN, Tax Period, and money amounts: Leave the second return attached to the first. "X" the first page of the second return and treat as an attachment to the first return. Exception: Do not "X" if an amended return. Detach amended return and process separately. The amended return will show on IDRS as a duplicate and be worked by Accounts Management.

# Perfecting Unprocessable Conditions

3.11.14.6.2 (01-01-2022) Perfecting Unprocessable Conditions Perfect all documents if possible. Examine schedules and other attachments for the information necessary to make the document processable. When found, edit on Form 1041. When perfection is not possible, prepare Form 4227 and notate the reason for rejection. Attach Form 4227 to the face of the document in a position that will leave the entity data, Condition Codes and Remittance Amount visible for transcription. If Then Numbered Returns, Edit to extent possible. Edit Action Code 640 (Void). Leave the document in the block. Unnumbered Returns, Do not continue editing the return. Withdraw the document from the batch and continue to below. If liability for two or more Form 1041 forms for the same tax class have been reported on one numbered return and the information necessary for the preparation of the individual returns is present: Adjust the line entries on the multiple periods return to reflect the liability for the earliest period. Edit Action Code 610/611 (Renumber/Remittance Renumber) and leave the original return in the block. Prepare the other period returns. Route the newly prepared returns for processing. If liability for two or more Form 1041 forms for the same tax class have been reported on one unnumbered return and the information necessary for the preparation of the individual returns is present: Adjust the line entries on the multiple periods return to reflect the liability for the earliest period. Prepare other period returns. Retain all these unnumbered returns in the batch. Reject all non-remittance Form 1041 forms showing taxable income but no tax computation and the taxpayer notates that the return is for an exempt organization (e.g., EXEMPT, NONTAXABLE, NONPROFIT, etc.): Prepare Form 4227 and notate "TAX EXEMPT STATUS PENDING" . Forward the return for shipment to the proper Key Area Examination function. For all other conditions, start correspondence action when the document cannot be perfected from attachments or schedules. The only exceptions are when the Name and Address are missing or are so illegible that correspondence is impossible, and when a document is being re-input after correspondence has already been conducted but the document still is unprocessable.

# ♦Correspondence♦

3.11.14.6.3 (01-01-2025) ♦Correspondence♦ There are two types of correspondence that Code and Edit will encounter: Correspondence received from taxpayers, and Correspondence issued to taxpayers.

# ♦Definition of Correspondence from Taxpayers♦

3.11.14.6.3.1 (01-01-2025) ♦Definition of Correspondence from Taxpayers♦ Correspondence is all written communications from a taxpayer or their representative, excluding tax returns, whether solicited or unsolicited. Such as: Written communications in response to IRS requests for information or data. Written communications, including annotated notice responses, which give more information or dispute a notice. A telephone call that results in a written referral or research (Form 4442, Inquiry Referral). The key to identifying taxpayer correspondence is to ask the following questions: Is taxpayer waiting for a response from us? Is taxpayer waiting for an action to be taken by us? Is taxpayer asking a question? What is the taxpayer asking for in their request? Why does the taxpayer need help? How can I help the taxpayer resolve their issue? Does this correspondence need to be referred to another division for assistance? Note: A Post-It-Note, Sticky Note, or some other type of note stuck on the return by another function doesn't constitute correspondence from the taxpayer.

# ♦Issuing Correspondence♦

3.11.14.6.3.2 (01-01-2025) ♦Issuing Correspondence♦ Issue correspondence to resolve any conditions causing the return to be unworkable or unprocessable. Exception: Section 965 Returns - Do not issue correspondence on the return. ERS will correspond for missing information. Exception: Do not correspond on returns prepared by Collections, IRC 6020(b) or by Examination, "Substitute for Return" (SFR). If the return is incomplete and appears to be a duplicate, give the return to the lead. The lead will start research for a Transaction Code (TC) 150 and/or any other research necessary to decide if the return must continue to be processed or other editing is needed. A duplicate return is any of the following: A one-page return, with or without a signature. Incomplete returns showing "Payment Only." Incomplete returns showing they have previously e-filed. "COPY" is notated on the return, Note: This list is not all inclusive. Tax examiners will see other unusual documents that are not addressed in this subsection or in other areas of the IRM. Correspond for back up forms and schedules≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Exceptions: Caution: If a letter is attached, signed by Competent Authority, Accept the letter as proof of Form 1042-S withholding and do not correspond for the missing Form 1042-S. Examine the return so all conditions are added in the same correspondence. If And Then Correspondence is needed, Requires a response, Complete an approved Correspondence Action Sheet showing the letter number (86C, 854C, 177C, 1355C, 3875C, etc.), Master File Tax (MFT) code, and the appropriate paragraphs. Note: Within these paragraphs there will be fill-ins that the tax examiner will be required to enter, such as tax period, form number, DLN, etc. Attach the Correspondence Action Sheet to the front of the return below the Entity area. Edit Action Code 211 (First Correspondence) or 215 (International Correspondence) on the return. Finish editing the return and leave in the batch. Correspondence is needed, doesn't require a response, Complete an approved Correspondence Action Sheet showing the letter number (86C, 854C, 177C, 1355C, 3875C, etc.), MFT code, and the appropriate paragraphs. Note: Within these paragraphs, there will be fill-ins that the tax examiner will be required to enter, such as, Tax Period, form number, DLN, etc. Photocopy first page of return and attach the Correspondence Action Sheet below the Entity area on the front of the return. Be sure the name and address show clearly above the Correspondence Action Sheet. Forward the copy to the Correspondence area. Edit an Action Trail (e.g., "3875C SENT" ) in the lower left corner going vertically up the side of the return. Finish editing the return and leave in batch. Note: There will be other letters that are exclusive to the tax examiner's campus. These letters are for specific forms or conditions where it was deemed necessary for processing. The tax examiner must go to their Lead or Manager for copies of these letters to facilitate processing.

# ♦Correspondence Imaging Inventory (CII) Returns♦

3.11.14.6.3.3 (01-03-2023) ♦Correspondence Imaging Inventory (CII) Returns♦ Correspondence Imaging Inventory (CII) is an inventory system for scanning all Account Management (AM) receipts into digital images and working the cases from those images. "CII" returns are stamped with "CII Image-Do not correspond for Signature" below the signature line or "CII" annotated on the front of the return. Verify all edit marks and ensure placement is correct on a "CII" return. If Then The edit marks are black, Underline the edit mark if correct or circle if incorrect. The edit marks are red or green, Circle if incorrect. The edit marks are missing or incorrect, Perfect, as necessary. Follow the correspondence instructions below for "CII" returns: If And Then The CII return has a Form 13596, Reprocessing Returns, attached, The return is incomplete (e.g., missing signature, schedules, or forms), Do not correspond. Remove the return from the batch and route to AM. If the return comes back from AM with the information still incomplete, send the return to AM again to secure all the missing information. show "More information needed to process incomplete CII return," or similar language on Form 4227, Intra-SC Reject or Routing Slip (or other appropriate routing slip). The "CII" return has a Form 13596, Reprocessing Returns, attached and the return is not complete (e.g., missing signature, schedules, or forms), There is an indication on the return that correspondence was sent (e.g., CCC 3 is edited on the return), Do not route the return to AM. Continue processing the return. The "CII" return doesn't have a Form 13596, Reprocessing Returns, attached, The return is incomplete (e.g., missing signature, schedules, or forms), Follow normal correspondence procedures.

# ♦IRS Employee Contacts♦

3.11.14.6.3.4 (01-01-2025) ♦IRS Employee Contacts♦ The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA98), 3705(a), gives identification requirements for all IRS employees working tax-related matters. All IRS employees who communicate by telephone, correspond face-to-face, or use any other method of correspondence with taxpayers or their personal representatives on tax-related matters must give (at a minimum) the following information: Telephone Contact - Their title (e.g., Mr., Mrs., Ms., or Miss), their last name, and badge identification (ID Card) number. Face-to-Face Contact - Their title (e.g., Mr., Mrs., Ms., or Miss), and give during the conversation, their proper last name and badge identification (ID Card) number. Correspondence (sent to the taxpayer and authorized representatives) - A telephone number that taxpayers can call for answers to questions. In addition, manually generated correspondence must have the employee's title (e.g., Mr., Mrs., Ms., or Miss), last name, IDRS (Integrated Data Retrieval System) number, and letter system number, which are systemically generated by IDRS. Treat faxes to taxpayers on tax-related matters as correspondence and add the required information. Correspondex letters will require a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to any questions that the taxpayer will have about the correspondence, or the employee is asking the taxpayer to provide more case-related information. When taxpayer requests to speak with a specific employee who previously worked their inquiry or request, or complains about the level of service previously given, make every attempt to resolve the taxpayer's inquiry. If unable to resolve the issue, refer the inquiry using established procedures to the manager. Secretaries, receptionists, or other people who answer the telephone in functional offices need to identify themselves and must give their badge identification (ID Card) number only if they are answering telephones which are routinely used to give tax or account information. It is not necessary to repeat the badge identification (ID Card) number on a subsequent contact, when the nature of an employee's work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either telephone or in-person) their badge identification (ID Card) number on the first contact.

# ♦Use of Fax for Taxpayer Submissions♦

3.11.14.6.3.5 (01-01-2026) ♦Use of Fax for Taxpayer Submissions♦ Taxpayers will 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. Contact with the taxpayer will be by telephone or correspondence. Follow local procedures to decide which method of contact to use. Show the fax paragraph on the approved Correspondence Action Sheet to inform the taxpayer of the fax option. Use the following resources to make sure you are speaking with the taxpayer or authorized representative prior to disclosing any tax information: IRM 21.1.3.2.3, Required Taxpayer Authentication IRM 21.1.3.2.4, Additional Taxpayer Authentication Prior to leaving any messages on a taxpayer's answering machine, review: IRM 10.5.1.6.7.2, Answering Machine or Voicemail IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance

# ♦Frivolous Arguments♦

3.11.14.6.3.6 (05-13-2022) ♦Frivolous Arguments♦ Businesses use frivolous arguments for expressing dissatisfaction with the substance, form, or administration of the tax laws by trying to illegally avoid or reduce tax liabilities. See IRM 25.25.10, Frivolous Return Program, and Exhibit 3.11.14-6, Potential Frivolous Arguments for Examination Review. Review the return to decide whether it appears to be a frivolous return. If Then The return meets any of the conditions shown as a frivolous return, (See Exhibit 3.11.14-6, Potential Frivolous Arguments for Examination Review. Exception: If the return shows Action Code 331 and has a Form 4227, Intra-SC Reject or Routing Slip, attached with the remarks, "Refer to Examination FRP for audit after processing" , continue to next procedure. Remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Program (FRP) for review. Examination has selected the return as frivolous, e.g., shown by Action Code 331 and a Form 4227, Intra-SC Reject or Routing Slip, with the remarks, "Refer to Exam FRP for audit after processing" , but sends the return for processing, Continue processing the return using procedures in IRM 3.11.14, Returns and Documents Analysis, Income Tax Returns for Estates and Trusts, (Form 1041, Form 1041-QFT, and Form 1041-N). However, do not circle or void the Action Code showing a frivolous return. Do not consider the following returns as frivolous, unless there is other evidence of a frivolous argument: Returns that have only zeros, blanks, or no entries. Returns showing "None", "Not Liable", etc.

# Audit Codes

3.11.14.7 (01-01-2026) Audit Codes Edit Audit Codes in the left margin next to.: Line 10, Form 1041. Line 6, Form 1041-QFT. Line 6, Form 1041-N. Note: The trust will notate the penalty and interest amount in the bottom margin of Form 1041-N. The amount is not to be added in the balance of tax due on Line 20. See IRM 3.11.14.47.2, Penalty and Interest Code Editing (Form 1041-N) . Edit a "1 -" followed by the correct code(s), e.g., "1 - 2" . Up to fifteen Audit Codes can be edited. If more than three Audit Codes apply, edit only the first three Audit Codes using the following priority order: Priority Order Audit Code Description 1 8 Form 1041-N 2 3 Inconsistent Treatment 3 2 Foreign Interest 4 1 International 5 4 Prompt Audit Request 6 5 Ineligible Fiscal Year Filers 7 6 Nonexempt Charitable and Split-Interest Trusts Decide the correct Audit Code as follows: Audit Code Description W Edit Audit Code W if any of the following conditions are present: Form 3800, Part III, line 1p has an entry and no Form 8908 is attached. Form 3800, Part III, line 1p has an entry and Form 8908 is attached and Part II of Form 8908 is missing. Form 3800, Part III, line 1p has an entry and Form 8908 is attached and Part II Column (a) of Form 8908 is incomplete or missing. 1 International - Edit Audit Code "1" if any of the following conditions are present: Line 2a of Schedule G (Form 1116) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Line 18 (Income Distribution Deduction) or Line 23 (Taxable Income) of Form 1041≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and any of the following conditions are present: Form 5471 is attached. Form 8865 is attached. Form 1041 Schedule K-1 beneficiary has a non-US Address. The Yes box is checked on Line 4 (Foreign Trust) of the Other Information section. 2 Foreign Interest - Edit Audit Code "2" if the "Yes" box is checked and/or a foreign country is listed on Line 3 of the "Other Information" Section at the bottom of Page 3 of Form 1041. 3 Inconsistent Treatment - Edit Audit Code "3" if any of the following conditions are present: Form 8082 is attached. Form 8275 is attached. Form 8275-R is attached. Form 8886 is attached. The taxpayer has notated that they are "COMPLYING WITH IR REGULATION 1.442.1(c)." Caution: Audit Code "3" takes precedence over all other Audit Codes except Audit Code 8. 4 Prompt Audit Request - Edit Audit Code "4" if any of the following conditions are present: Form 4810 is attached. The return has an attachment or notation of a "REQUEST FOR PROMPT AUDIT ASSESSMENT" or by citing "IRC SECTION 6501(d))" and no TC 150 is posted. See IRM 3.11.14.10.3, Prompt Assessment/Prompt Determination (Form 4810). Note: Don't edit Audit Code "4" for "Request for Prompt Determination under Section 505(b)" . 5 Ineligible Fiscal Year Filers - Edit Audit Code "5" if the taxpayer is filing a Fiscal Year return unless it is the following: Estate, Non-Exempt Charitable Trust under IRC 4947(a)(1) or IRC 501(a). One of the following notations is shown on the return: IRC 671 (trust established in 1906), through IRC 678, and/or IRC 443(b)(2). Any return that shows it is a final return. Any return that shows it is an Initial return, which has a Tax Period ending date in December (Calendar Year filer). See Figure 3.11.14-1, Audit Code "5" - Ineligible Fiscal Year Filers. Note: The only Form 1041 entities that can file fiscal year returns are estates, charitable trusts and IRC 671 through IRC 678. 6 Nonexempt Charitable and Split-Interest Trusts - Edit Audit Code "6" if either the first or third box is checked in Section E of Form 1041. See IRM 3.11.14.15, Box E - Nonexempt Charitable and Split-Interest Trusts. 7 Not a private foundation box checked. 8 Form 1041-N - Edit Audit Code "8" to allForm 1041-N, Electing Alaska Native Settlement Trusts returns only. Caution: No other Audit Codes are valid with Audit Code "8" . Reminder: If Form 1041-N is received at any campus other than OSPC, transship the return to OSPC for processing. Figure 3.11.14-1 Audit Code "5" - Ineligible Fiscal Year FilersFigure 3.11.14-1 shows an example of editing Audit Code 5 on a completed Tax Year 2025 Form 1041. The taxpayer shown a fiscal year beginning February 1, 2025, and ending January 31, 2026. The edited tax period 2601 is written above the OMB No. 1545 0092. The taxpayer checked the Complex Trust Box in Section A and Fiduciary Code 3 is edited to the right of the Simple Trust box. There is no indication the taxpayer qualifies to file on a fiscal year basis as explained in the above text. Audit Code 5 is edited to the left margin next to line 10 in 1 - 5 format. Please click here for the text description of the image.

# Computer Condition Codes (CCC)

3.11.14.8 (01-01-2022) Computer Condition Codes (CCC) Computer Condition Codes (CCC) are used to identify a special condition or computation for the computer. CCCs post to the Master File. Computer Condition Codes are edited in the center of Lines 1 and 2 of Form 1041, Form 1041-QFT and Form 1041-N.

# CCC "B" - Section 965(i) Election to Defer Net Tax Liability

3.11.14.8.1 (01-01-2026) CCC "B" - Section 965(i) Election to Defer Net Tax Liability For Tax Periods 201712 through 201911 returns, CCC "B" is used to identify an Election to defer Net Tax Liability under Section 965(i). See IRM See IRM 3.11.14.10.9, Section 965 Returns Form 1041 and Form 1041-N (TY 2017 and later) for instructions on when to edit CCC "B" .

# CCC "C" - Invalid Vehicle Year or Service Date

3.11.14.8.2 (01-01-2024) CCC "C" - Invalid Vehicle Year or Service Date CCC "C" is an invalid code which will force the return to error correction. Edit CCC "C" if Form 8834, Form 8910, and/or Form 8939 has an invalid vehicle year or an invalid in service date. For Valid Vehicle Year Valid In-Service Date Form 8834, see IRM 3.11.14.39.34, Line 1zz - Other Credits. 2009 After 2/17/2009 The last valid tax period for claiming this credit was 201211. Form 8936, see IRM 3.11.14.39.25, Line 1y - Qualified Plug-In Electric Drive Motor Vehicle (Form 8936). 2009 After 1/1/2009 Form 8910, see IRM 3.11.14.39.18, Line 1r - Alternative Motor Vehicle (Form 8910). N/A After 2/17/2009

# ♦CCC "D" - Reasonable Cause for Failure to Pay Penalty♦

3.11.14.8.3 (01-01-2022) ♦CCC "D" - Reasonable Cause for Failure to Pay Penalty♦ Do not edit CCC "D" if the taxpayer requests abatement for "Failure to Pay Timely" when the return is submitted. Send Letter 1382C, Penalty Removal Request Incomplete, to inform taxpayer of the proper procedure to follow to request penalty abatement, if, and when a penalty is assessed. Edit CCC "D" if an internal use form or routing slip is attached and shows "DO NOT ASSESS FAILURE TO PAY PENALTY." Note: Do not enter CCC "D" if the return was prepared by IRS under IRC 6020(b) and the return due date (without regard to extensions) is after July 30, 1996. Edit CCC "D" on a "Final" , Balance Due return if the Received Date is after the short period due date but on or prior to the regular full tax period due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. See IRM 3.11.14.8.5, CCC "F" Final Return. Do not edit CCC "D" when pre-computed penalty is shown on the return. Edit CCC "D" on a complete Streamline return filing. See IRM 3.11.14.10.14, Streamlined Filing Compliance Process (Ogden Only) (Form 1041).

# CCC "E" - Potential Identify Theft Filing

3.11.14.8.4 (01-01-2025) CCC "E" - Potential Identify Theft Filing Effective January 1, 2017, Computer Condition Code "E" will be edited on Form 1041, only, for any year, after the SP BMF ID Theft Liaison verifies a potential identify theft filing. If a tax examiner in Submission Processing (SP) Code and Edit (C&E) finds a case with attachments or correspondence showing the taxpayer is a victim of ID Theft, give the entire case to your senior/lead. Your senior/lead will expedite the case to the Planning and Analysis (P&A) staff for referral to one of the 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 Funny Box or Fraud review. If the SP BMF ID Theft Liaison says the return is ID Theft, the tax examiner will edit CCC E.

# ♦CCC "F" - Final Return♦

3.11.14.8.5 (01-01-2025) ♦CCC "F" - Final Return♦ Edit CCC "F" when the "Final Return" box is checked, or the estate or trust shows it is not liable for future returns. Notations will include (but are not limited to): Final Out of Business Liquidation Exempt Under IRC 501(c)(3) Dissolved

# ♦CCC "G" - Amended Return♦

3.11.14.8.6 (01-01-2016) ♦CCC "G" - Amended Return♦ See IRM 3.11.14.10.1, Amended Return, for instructions.

# CCC "I" - Form 6781, Regulated Futures Contracts and Tax Straddles

3.11.14.8.7 (01-01-2025) CCC "I" - Form 6781, Regulated Futures Contracts and Tax Straddles Edit CCC "I" when Form 6781 (Gains and Losses from Section 1256 Contracts and Straddles) is attached. Note: CCC "I" must be edited as a capital in block style to distinguish it from CCC 1.

# CCC "J" - Section 965 Tax

3.11.14.8.8 (01-01-2026) CCC "J" - Section 965 Tax For Tax Periods 201712 through 201911 returns, CCC "J" is used to show a Section 965 return. See IRM 3.11.14.10.9, Section 965 Returns Form 1041 and Form 1041-N (TY 2017 through 201911), for instructions when to edit CCC "J" . Note: CCC "J" will only be edited on inclusion year returns 201712 through 201911.

# CCC "K" - Qualifying Small Business Taxpayer

3.11.14.8.9 (01-01-2016) CCC "K" - Qualifying Small Business Taxpayer Edit CCC "K" , for taxable periods ending in 2009 only, when Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, box "E" is checked in Part II.

# CCC "M" - Sales and Other Dispositions of Capital Assets on Form 8949 with a Code "Z" or "Y" .

3.11.14.8.10 (01-01-2022) CCC "M" - Sales and Other Dispositions of Capital Assets on Form 8949 with a Code "Z" or "Y" . Edit CCC "M," when tax period is 201712 and later, andForm 8949 (Sales and Other Dispositions of Capital Assets) has a code "Z" or "Y" in any line for column (f) of Part I and Part II. Note: Tax Cuts and Job Act of 2017 P.L. 115-97 (H.R. 1), Section 13823, Opportunity Zones, Taxpayers who elect to defer gain on the sale of an asset by investing in an Opportunity Zone Fund will show that they are deferring the gain by entering code "Z" or "Y" in column (f).

# CCC "N" - Allocation of Increase in Basis for Property Received from a Decedent

3.11.14.8.11 (01-01-2016) CCC "N" - Allocation of Increase in Basis for Property Received from a Decedent Edit CCC "N" when Form 8939, Allocation of Increase in Basis for Property Received from a Decedent, is attached to Form 1041.

# CCC "O" - Manual Refund

3.11.14.8.12 (01-01-2022) CCC "O" - Manual Refund CCC "O" is edited when a Manual Refund will be issued, and a Form 3753 or Form 5792 is attached. Verify that the Name Control, EIN, and Tax Period on the return are the same as the information on the attached form. When editing CCC "O" , research to decide if TC 840 (Manual Refund Transaction) has posted: If Then TC 840 has posted, Edit CCC "O" and continue processing the return. TC 840 has not posted, Edit Action Code 341 (Manual Refund).

# CCC "P" - Return Submitted Under Streamlined Filing Compliance Procedures

3.11.14.8.13 (01-01-2016) CCC "P" - Return Submitted Under Streamlined Filing Compliance Procedures Edit CCC "P" on the return when "Streamlined" is written on the top of the return. Note: Ogden will process all returns submitted under the Streamline Program. See IRM 3.11.14.10.14, Streamlined Filing Compliance Process (Ogden Only) (Form 1041).

# ♦CCC "R" - Reasonable Cause for Failing to File a Timely Return♦

3.11.14.8.14 (05-13-2022) ♦CCC "R" - Reasonable Cause for Failing to File a Timely Return♦ Do not edit CCC "R" when a reason is given by the taxpayer for a delay in filing a return. Issue Letter 1382C, Penalty Removal Request Incomplete, and continue editing the return. Edit CCC "R" on the return when any of the following conditions are present: There is an indication such as "DO NOT ASSESS FAILURE TO FILE PENALTY" on a secured return annotated with TC "599" . If an internal use form or routing slip is attached and shows do not assess failure to file penalty. Note: All "R" coded returns must have an IRS received date. If one is not present, edit the IRS Received Date in the middle of the return. Edit CCC R on final short-period if the received date is on or prior to the normal due date for a full-period return. See IRM 3.11.14.12.2 (2), Final Returns for possible editing of CCC R on short period. Edit CCC "R" on a complete Streamline return filing. See IRM 3.11.14.10.14, Streamlined Filing Compliance Process (Ogden Only) (Form 1041). Caution: Never change the IRS Received Date when editing CCC R. Note: CCC "R" cannot be used with CCC "4" .

# CCC "T" - Reportable Transaction Disclosure Statement

3.11.14.8.15 (01-02-2018) CCC "T" - Reportable Transaction Disclosure Statement Edit CCC "T" when Form 8886, Reportable Transaction Disclosure Statement is attached to a return.

# CCC "V" - Qualified Therapeutic Drug Credit Claimed

3.11.14.8.16 (01-01-2020) CCC "V" - Qualified Therapeutic Drug Credit Claimed Edit CCC "V" when Form 3800, Part III, Lines 1a and/or 4a has a significant entry and Form 3468, Part II, Line 8 has an entry. Note: This is only valid for tax period 201001 to 201010.

# ♦CCC "W" - Return Cleared by Statute Control♦

3.11.14.8.17 (05-13-2022) ♦CCC "W" - Return Cleared by Statute Control♦ CCC "W" is used when the return was cleared by Statute Control. See IRM 3.11.14.10.11, Statute Returns.

# CCC "X" - Refund/Settlement Freeze

3.11.14.8.18 (01-01-2026) CCC "X" - Refund/Settlement Freeze Edit CCC "X" when any of the following conditions occur: If Then The taxpayer has requested part of the refund be applied to another account, Edit CCC "X." Photocopy: Pages 1 - 3 of Form 1041. Page 1 of Form 1041-QFT. Page 1 of Form 1041-QFT Prepare Form 3465, attach to the photocopy, and forward to Accounts Management. Notate Form 3465 PREPARED on the original Form 1041. See Figure 3.11.14-2, Editing suppression of credit interest. Form 1041-T is present with significant money amounts, See IRM 3.11.14.22.12.2, Line 11, Schedule G - Estimated Tax Treated as Paid by Beneficiary (Form 1041-T). Reminder: Subtract the tax, penalties and interest amounts from the remittance amount if available. Figure 3.11.14-2 Editing suppression of credit interestFigure 3.11.14-2 is an example of editing CCC X to suppress credit interest when the filer requests part of the refund be applied to another account. Shown is a folded section of a completed Form 1041. A note is attached requesting to apply the refund to a previous tax year. Computer Condition Code X is edited in the middle of the dotted part of Line 1 (Interest Income). The bottom section of Form 1041 shows an overpayment of 50 dollars. A text box in the bottom middle of Form 1041 reads: 1. Edit CCC X. 2. Photocopy pages 1 - 3 of Form 1041 (page 1 of Form 1041-QFT/1041N). 3. Prepare Form 3465, attach to the photocopy and forward to Accounts Management. 4. Notate Form 3465 PREPARED on the original Form 1041. Please click here for the text description of the image.

# CCC "Y" - Short Period Return for Change of Accounting Period

3.11.14.8.19 (01-01-2016) CCC "Y" - Short Period Return for Change of Accounting Period CCC "Y" is edited for a Change of Accounting Period. Enter only for short period returns due to change of accounting period not due to initial or final filing: See IRM 3.11.14.12.5, Short Period Returns - Editing Proof of Entitlement See IRM 3.11.14.12.6, Short Period Returns - Missing Proof of Entitlement See IRM 3.11.14.12.7, Short Period Returns - Editing a Disapproved Application (Form 1128) See IRM 3.11.14.12.8, Short Period Returns - Editing Form 1128 With No Indication of Approval or Disapproval See IRM 3.11.14.12.9, Short Period Returns - with Prepaid Credits If a prepaid credit is claimed on a short-period Final return, see IRM 3.11.14.12.9, Short Period Returns - with Prepaid Credits. Don't edit CCC "Y" for "Initial" or "Final" returns.

# CCC "1" - Like-Kind Exchanges (Form 8824)

3.11.14.8.20 (01-01-2016) CCC "1" - Like-Kind Exchanges (Form 8824) Edit CCC "1" when Form 8824, Like-Kind Exchanges, is attached.

# CCC "2" - Statement of Foreign Financial Assets (Form 8938)

3.11.14.8.21 (02-24-2025) CCC "2" - Statement of Foreign Financial Assets (Form 8938) For Tax Year 2022 and later, Form 8938, Statement of Foreign Financial Assets, will be input into the General Purpose Programming (GPP) database. Process Form 8938 with the following criteria: Tax Period on Form 1041 is 202201 or later, and Form 8938 has significant entries. Note: A significant entry is defined as any amount other than zero. If Form 8938 is attached, but doesn't meet the above criteria, then continue normal processing of Form 1041. Edit CCC 2, do not sequence the form to the back of the return, or place the form in the designated basket. If Form 8938 meets the criteria in paragraph (2), process Form 8938 per the instructions below: Completely edit Form 1041. Edit CCC "2" . Detach Form 1041 Schedule K-1 and paper clip to return. Pull the Form 8938 from the return and sequence to the back of the last page of Form 1041 (after schedules and attachment pages), attaching the Form 8938 so that it is back- to- back with the parent return. Place the Form 1041 in a designated basket. Only one Form 8938, Pages 1 and 2, is processed. If multiple Form 8938 are attached, select the form that has the highest account value in Part V, Line 4; or highest asset value in Part VI, Line 4 and delete the others. Note: The Form 8938 can have multiple "Continuation Statements" . Do not confuse the multiple continuation statements with multiple Form 8938. Form 1041 with Form 8938 attached must be batched separately.

# ♦CCC "3" - No Reply to Correspondence♦

3.11.14.8.22 (01-01-2022) ♦CCC "3" - No Reply to Correspondence♦ Edit CCC "3" when the return is unprocessable and there is an indication that correspondence was sent, and no reply received.

# ♦CCC "4" - IRS Prepared Return Under IRC 6020(b)♦

3.11.14.8.23 (01-01-2022) ♦CCC "4" - IRS Prepared Return Under IRC 6020(b)♦ Edit CCC "4" when the IRS's Compliance Branch prepared a return and the Revenue Officer entered IRC 6020(b). Note: CCC "R" cannot be used with CCC "4" .

# CCC "8" - Waiver of Estimated Tax Penalty

3.11.14.8.24 (01-01-2026) CCC "8" - Waiver of Estimated Tax Penalty Edit CCC "8" when any of the following conditions are present: If And Then The return is for a decedent estate (Fiduciary Code 1), See Figure 3.11.14-3, CCC "8" - Date Entity Created is Within 2 years for a decedent estate or testamentary trust. The date entity created is within two years of the tax year ending, Note: The date that a decedent's estate is created is the date of death. Edit CCC "8" . The taxpayer notated Testamentary Trust, Tstmtry, Trust Under the Will, T.U.W, or TR/W in the entity part of return, The date entity created is within two years of the tax year ending, Edit CCC "8" . Example: If the filer has entered 3-17-2024 in Section D, edit CCC "8" for any return with a Tax Year Ending on or prior to 3-16-2025. Caution: Do not edit CCC "8" if the "Date Entity Created" is after the Tax Period Ending Date. If And Then The return is for a bankruptcy estate (Fiduciary Code 5 or 6), See Figure 3.11.14-4, CCC "8" for Bankruptcy Estate. Edit CCC 8. If Form 2210 is attached, See Figure 3.11.14-5, Waiver of Estimated Tax Penalty on Form 2210 Any of the boxes in Part II, a through e is checked, Edit CCC 8. If Form 2210-F is attached, Waiver of Estimated Tax Penalty on Form 2210. Part I, box a is checked, Edit CCC 8. Reminder: Also, edit CCC "K" if Form 2210 box "F" is checked in Part II on a 2009 return only. If And Then Form 1040 Schedule H is attached to the return, Form 1041 doesn't have withholding credit (Schedule G, Line 14), and Total tax without household employment tax is less than $1,000 (Schedule G, Line 9 minus Line 7, is less than $1,000), Edit CCC 8. Caution: Significant transcription amounts are needed on Schedule H. Edit CCC "8" on a complete Streamline return filing. See IRM 3.11.14.10.14, Streamlined Filing Compliance Process (Ogden Only) (Form 1041). Figure 3.11.14-3 Edit of CCC 8 when the date entity created is within two years of the tax period ending and return is for a decedent estate or testamentary trust.Figure 3.11.14-3 shows two examples of editing CCC 8 Waiver of estimated tax penalty as described above. The first graphic shows the completed top part of Tax Year 2025 Form 1041 from Line 2a (Total ordinary dividends) up.Section A (Type of Entity) shows the Decedent's estate box checked and Fiduciary Code 1 is edited to the right of the Simple Trust box. An arrow is pointing to the Decedent estate box.The entity section shows George C Warbler Estate and the Name Control Warb is underlined.The taxpayer has shown a fiscal year beginning 03 17 2024 and a fiscal year ending March 16, 2025. An arrow is pointing to 03 16 2025. The edited tax period 2503 is written above the tax period ending date. Block D, Date entity created shows 03172024. An arrow is pointing to this date.The Final Return box is checked.CCC 8 and F is shown in the center of the dotted part of Line 1 (Interest Income).The second example shows the completed top part of a calendar year 2025 Form 1041 from Line 2a (Total ordinary dividends) up.Section A (Type of Entity) shows the Simple Trust box checked and Fiduciary Code 2 is edited to the right of the Simple Trust box. An arrow is pointing to the Simple Trust box.The entity section shows Cardinal T / U / W Franklin C Cardinal and the Name Control Card is underlined.Block D, Date entity created shows 06 21 2024. An arrow is pointing to this date.CCC 8 is shown in the center of the dotted part of Line 1 (Interest Income). Please click here for the text description of the image. Figure 3.11.14-4 Bankruptcy EstateThis is an example of editing CCC 8 when the Bankruptcy Estate box is checked. An arrow is pointing to the marked box Bankruptcy Estate Ch 7 and CCC 8 is shown in the center of the dotted part of Line 1 (Interest Income). Please click here for the text description of the image. Figure 3.11.14-5 Edit of Waiver of ES PenaltyFigure 3.11.14-5 shows an example of a Waiver of Estimated Tax Penalty when Form 2210 is attached. The graphic represents a folded Form 2210 showing the top part and Part II (Reasons for filing). A text box that reads: Any of the boxes checked in Part II, Edit CCC 8. and has an arrow pointing to Part II. Please click here for the text description of the image.

# CCC "9" - Low-Income Housing Credit (LIHC)

3.11.14.8.25 (01-01-2016) CCC "9" - Low-Income Housing Credit (LIHC) Edit CCC "9" when any of the following forms are attached and an entry is present on Line 2b*, Schedule G of Form 1041 *(Line 2c for 2009 and prior): Form 8586, Low-Income Housing Credit. Form 8609, Low-Income Housing Credit Allocation and Certification, for year's 200412 and prior. Form 8609-A, Annual Statement for Low Income Housing Credit. Form 8693, Low-Income Housing Credit Disposition Bond. Caution: Do not edit CCC "9" if Form 8611, Recapture of Low-Income Housing Credit, is attached.

# Return Processing Code (RPC)

3.11.14.9 (01-01-2026) Return Processing Code (RPC) Description - Return Processing Code (RPC) is an alpha or numeric character used to identify a specific condition on the return. RPCs are edited on Page 1, to the right of line 1, in the margin area for Form 1041, and Page 1 to the right of line 1a, in the margin area for Form 1041-QFT, and Form 1041-N. Note: RPCs do not need to be edited in any specific order. Edit multiple RPCs vertically down the margin. Edit the valid RPC when any of the following forms is attached and has data: RPC Form and Title A Form 5471, Schedule E, Income, War Profits, and Excess Profits Taxes Paid or Accrued B Form 5471, Schedule H, Current Earnings and Profits C Form 5471, Schedule I -1, Information for Global Intangible Low-Taxed Income D Form 5471, Schedule P, Previously Taxed Earnings and Profits of U.S. Shareholder of Certain Foreign Corporations E Form 8865, Schedule G, Statement of Application of the Gain Deferral Method Under Section 721 (c) F Form 8865, Schedule H, Acceleration Events and Exceptions Reporting Relating to Gain Deferral Method Under Section 721 (c) G Form 5471, Schedule G-1, Cost Sharing Arrangement J For tax periods 202212 - 202311 - Taxpayer writes "IRA22DPE" on Form 3800, an attachment, or on the top of return (Form 1041, Form 1041-QFT, Form 1041-N). See IRM 3.11.14.10.16, Elective or Deemed Payment Election and Credit Transfers: Completely edit the return. Edit RPC "J." Place a flag at the top of the return and attach the "IRA22 DPE/TRE Reminder" sheet to the return. Note: PA will provide the pre-printed half-sheets for CE to use. Give the return to the lead. The lead will have the returns re-batched with "DPE" in the batch ID. K For tax periods 202212 - 202311 - Taxpayer writes "IRA22TRE" on Form 3800, an attachment, or on the top of return (Form 1041, Form 1041-QFT, Form 1041-N). See IRM 3.11.14.10.16, Elective or Deemed Payment Election and Credit Transfers: Completely edit the return. Edit RPC "K." Place a flag at the top of the return and attach the "IRA22 DPE/TRE Reminder" sheet to the return. Note: PA will provide the pre-printed half-sheets for CE to use. Give the return to the lead. The lead will have the returns re-batched with "TRE" in the batch ID. Note: A return can have both an RPC "J" and an RPC "K." L Form 7204, Consent to Extend the Time to Assess Tax Related to Contested Foreign Income Taxes - Provisional Foreign Tax Credit Agreement M Form 7205, Energy Efficient Commercial Buildings Deduction 1 Form 8991, Tax on Base Erosion Payments of Taxpayers with Substantial Gross Receipts 2 Form 8992, U.S Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI) 3 Form 8993, Section 250 Deduction for Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI) 4 Form 8994, Employer Credit for Paid Family and Medical Leave 5 Reserve for Future use 6 Form 8996, Qualified Opportunity Fund 7 Form 8990, Limitation on Business Interest Expense Under Section 163(j) 8 Form 461, Limitation on Business Losses 9 Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments

# Special Conditions/Returns

3.11.14.10 (01-01-2022) Special Conditions/Returns Follow the instructions in this section, unless otherwise instructed.

# ♦Amended Returns♦

3.11.14.10.1 (01-01-2026) ♦Amended Returns♦ A return is considered amended based on the following: The Amended box is checked. Words such as, "Supplemental," "Corrected" , or "Additional" are present. Any indication from the taxpayer a previous return was filed. Note: Words such as Copy or Duplicate are not sufficient and must be accompanied by a statement from the taxpayer that a previous return was filed. The return appears to be a duplicate and IDRS research shows a Transaction Code (TC) 150. If a Form 1041 is received with a second Form 1041 attached and the second return has the same EIN and Tax Period: Leave the second return attached to the first. "X" the first page of the second return and treat as an attachment to the first return. Exception: Do not "X" if an amended return. Detach amended return and process separately. The amended return will show on IDRS as a duplicate and be worked by Accounts Management. Examine the return for attachments: Do not separate any related attachments submitted to explain the reason for the Amended return. Accounts Management will use the information. Detach any unrelated documents and route them to the correct function using Form 4227 and edit the Working Trail on the return. Exception: Pull any amended Form 1041 that has "Qualified Cellulosic Biofuel Credit refund or CBR" notated and route to Accounts Management. Follow the instructions in the chart below when there is an indication of an amended return: If Then Compliance Services entered TC 59X or ICS on the return, Do not edit CCC "G." Process the return as an original. Statute Control stamped the return "Delinquent Original Cleared for Processing," Do not edit CCC "G." Process the return as an original. Form 3893, Re-Entry Document Control, or Form 13596, Reprocessing Return, is attached, Do not edit CCC "G:" See IRM 3.11.14.10.6.1, Form 3893, Re-Entry Document Control. See IRM 3.11.14.10.6.2, Re-Entry Document procedures. None of the above are present, Edit CCC "G." Do not use any other codes with CCC "G." Exception: CCCs "W," "3," I, and Error Resolution System (ERS) Action Codes can be used with CCC "G." Reminder: Do not edit a Fiduciary Code or Trust Code when editing CCC "G" for amended. See IRM 3.11.14.10.11, Statute returns. Do not edit CCC "G" on returns filed under Section 443(b)(2). See Exhibit 3.11.14-5, IRC Sections and Actions to be taken on Form 1041. The following data must be edited on all amended returns: EIN - See IRM 3.11.14.14.2, Entity Perfection - Employer Identification Number (EIN). Name Control - See IRM 3.11.14.14.3, Entity Perfection - Name Control. Tax Period - See IRM 3.11.14.12, Tax Period. CCC "G" - See IRM 3.11.14.8.6, CCC "G" - Amended Returns, and Reminder above. Exception: Don't route to Statute Control Unit for clearance, edit CCC "W" and continue processing if any of the following conditions are present: Compliance IRC 6020(b) returns. Secured by Examination/Collections, Secured by TE/GE, Secured by TE/GE EP Exam Returns with "TC 59X" or "ICS" notated on the face of the return. Returns that are substitute returns prepared by Examination (SFR) in top margin of the form. Returns with a stamp showing a previous clearance by Statute Control within the last 90 days. Return is a 2022 or 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 2022 or 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 corresponding for a signature on an amended return, you will still code with CCC "G" and edit CCC 3 if the return is a no-reply to correspondence. IRS Received Date - See IRM 3.11.14.11, Received Date. Signature - See IRM 3.11.14.19, Signature. Note: Do not perfect the address on amended returns. see IRM 3.11.14.14.5, Entity Perfection - Domestic Addresses. Reminder: Do not edit E-file Waiver Code on amended returns. Detach Schedules K-1 for current year and prior two years. Process accordingly. See IRM 3.0.101, General, Schedule K-1 Processing. Watch for the Amended Box on Schedules K-1. Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Amended 1041 returns with "Streamline" written across the top will need special handling. Amended Streamlined 1041 returns will not be processed, give them to the lead. Instead, they will be scanned into CII in Austin and worked by Ogden's AM. If amended 1041 Streamlined returns are received in Ogden, they will be scanned into CIS with a special cover sheet assigned to a special employee number.

# Bankruptcy Returns

3.11.14.10.2 (01-01-2026) Bankruptcy Returns This subsection has instructions for processing bankruptcy returns. The bankruptcy trustee or debtor in possession must file Form 1041 for the estate of an individual involved in bankruptcy proceedings under Chapter 7 or 11 of title 11 of the United States Code if the estate has gross income that exceeds the amount of: Note: For Tax Year 2018 and later a personal exemption is not allowed. $15,750 for Tax Year 2025 (standard deduction of single or married filing separately) $14,600 for Tax Year 2024 (standard deduction of single or married filing separately) $13,850 for Tax Year 2023 (standard deduction of single or married filing separately) $12,950 for Tax Year 2022 (standard deduction of single or married filing separately) $12,550 for Tax Year 2021 (standard deduction of single or married filing separately) $12,400 for Tax Year 2020 (standard deduction of single or married filing separately) $12,200 for Tax Year 2019 (standard deduction of single or married filing separately) $12,000 for Tax Year 2018 (standard deduction of single or married filing separately) $10,400 for Tax Year 2017 (personal exemption plus the standard deduction of single or married filing separately) Prompt identification must be made of a bankruptcy related "Request for Prompt Assessment" or a "Quick Determination" of tax liability to ensure that the crucial 60-day and 180-day deadlines is met timely by Compliance. See IRM 3.11.14.10.3, Prompt Assessment/Prompt Determination (Form 4810). Edit Fiduciary Code "5" on all Chapter 7 Bankruptcy Estate returns or "6" on all Chapter 11 Bankruptcy Estate returns. If no boxes are checked, edit Fiduciary Code "5" if the return shows it is a bankruptcy. See IRM 3.11.14.13.3, Fiduciary and Trust Code Editing. Reminder: Edit CCC "8" for all bankruptcies. See IRM 3.11.14.8.24, CCC "8" - Waiver of Estimated Tax Penalty and IRM 20.1.3.2.7.3, Bankruptcy. All bankruptcy returns, except amended bankruptcy returns, must be routed to Entity. Completely edit the return except the name control prior to sending to Entity. See below for more editing instructions. Exception: Do not route to Entity if there is an indication Entity has already edited the return usually orange/purple editing of the EIN and name control. If Form 6252 is attached to a nontaxable Grantor Trust or Bankruptcy Estate return, do not edit an Installment Sale Indicator Code. Form 6252 information will be added on the individual tax return.

# Identification of Bankruptcy Estate Returns

3.11.14.10.2.1 (01-01-2025) Identification of Bankruptcy Estate Returns A Bankruptcy return must have one of the following boxes in "Box A - Type of Entity" checked on Form 1041: Bankruptcy estate - Ch. 7 Bankruptcy estate - Ch. 11 If no box is checked, decide if the return is for a Bankruptcy Estate from the Name Line, or attachment and/or the applicable exemption is claimed on Line 21. See IRM 3.11.14.13.3 (5), Fiduciary and Trust Code Editing. Bankruptcy estate returns can only be filed for individuals. Note: If the Name Line shows Partnership or Corporation, see IRM 3.11.14.10.2.6, Corporation or Partnership Bankruptcy. If the determination is made that a Bankruptcy estate return exists, Form 1040must be attached. Form 1041 is used as a transmittal form for Form 1040. The top margin of Form 1040 must be notated ATTACHMENT TO FORM 1041. DO NOT DETACH.

# Individual Bankruptcy

3.11.14.10.2.2 (01-01-2026) Individual Bankruptcy If Form 1040 is attached, all income and deductions must be reported, and the tax computed on Form 1040. Only the tax liability must be reported on Lines 23 through 30 of Form 1041. If the taxpayer has entered amounts in any of Lines 1 through 22 of Form 1041, place an "X" across lines 1 through 22. The amounts on Form 1041 must equal the information given on Form 1040. If Form 1040 is attached, ensure that the amounts reported on Form 1041 equal the amounts reported on Form 1040 as follows: See Figure 3.11.14-6, Individual Bankruptcy Estate. Form 1040 Edit to Form 1041 Description Line 24 Line 24 Total Tax Line 26 Line 10, Sch. G Estimated Tax Payments Schedule 3, Line 10 Line 13, Sch. G Amount Paid with Extension Line 25d Line 14, Sch. G Federal Income Tax Withheld Schedule 3, Line 13a Line 16, Sch. G Credit from Form 2439 Schedule 3, Line 12 Line 17, Sch. G Credit from Form 4136 Schedule 3, Line 13c Line 18a, Sch. G Elective Payment Election Amount from Form 3800 Schedule 3, Line 13z Line 18b, Sch. G Other Credits or Payments Line 33 Line 26 Total Payments Line 34 Line 29 Overpayment Line 35a Line 30b Refund Line 36 Line 30a Credit Elect Line 37 Line 28 Tax Due Line 38 Line 27 Estimated Tax Penalty Note: For prior year returns, match the Total Tax, Total Payments, Overpayment, and Tax Due to the same line descriptions on Form 1041. Process deviations to each line compared above as follows: If Then Form 1041 is blank, and Form 1040 is not attached, Correspond. Form 1041 equals Form 1040, Continue editing the return. Form 1041 has an entry, but Form 1040 is zero or blank, Continue editing the return. Form 1041 entry is zero or blank, and Form 1040 has an entry, Edit the amount from Form 1040 to the applicable Line on Form 1041. Entries are present on both Form 1041 and Form 1040, but the amounts on each form are different, Correspond with Letter 177C to decide the correct amount. Form 1040 is not attached and Lines 1 through 23 of Form 1041 are completed and Line 9 has Gross Income of less than the applicable tax year Exemption plus the Standard Deduction, see Exemption/Standard Deduction Chart in paragraph (3)c) below. Process as a nontaxable return. Correspond with Letter 177C to inform the taxpayer there is no need to file Form 1041. Do not suspend. (Follow local procedures). Form 1040 is not attached and Lines 1 through 23 are completed on Form 1041, and Line 9 has Gross Income of greater than the applicable tax year Exemption plus the Standard Deduction, see Exemption/Standard Deduction Chart in paragraph (3)c) below. Correspond with Letter 177C using the correct paragraph to request a copy of Form 1040 for the applicable Tax Period. Form 1040 is not attached and lines 24 through 30 of Form 1041 are present, Correspond. Exemption/Standard Deduction Chart: Note: For Tax Year 2018 and later a personal exemption is not valid. Tax Year Exemption Standard Deduction Combined Total 2025 $0 $15,750 N/A 2024 $0 $14,600 N/A 2023 $0 $13,850 N/A 2022 $0 $12,950 N/A 2021 $0 $12,550 N/A 2020 $0 $12,400 N/A 2019 $0 $12,200 N/A 2018 $0 $12,000 N/A 2017 $4,050 $6,350 $10,400 2016 $4,050 $6,300 $10,350 2015 $4,000 $6,300 $10,300 2014 $3,950 $6,200 $10,150 2013 $3,900 $6,100 $10,000 2012 $3,800 $5,950 $9,750 2011 $3,700 $5,800 $9,500 2010 $3,650 $5,700 $9,350 2009 $3,650 $5,700 $9,350 2008 $3,500 $5,450 $8,950 2007 $3,400 $5,350 $8,750 Figure 3.11.14-6 Edit Fiduciary Code 6 when the Bankruptcy estate Chapter 11 box is marked.Figure 3.11.14-6 shows an example of a Tax Year 2025 Bankruptcy return. The taxpayer filed a Form 1041 with a Form 1040 attached and shows Bankruptcy in the name line on Form 1041.Pictured is the top part of a completed unnumbered calendar year Form 1041. John Q Osprey Estate Bankruptcy is written on the name line. The Bankruptcy estate Chapter 11 box is checked. and Fiduciary Code 6 is edited to the right of the Simple Trust box. Also, pictured is a folded Form 1040. The entity section is completed, and John Q Osprey is written on the name line. Lines 24, 26, 33 and 37 show entries. Please click here for the text description of the image.

# Joint Filed Bankruptcy Estate Returns

3.11.14.10.2.3 (11-15-2022) Joint Filed Bankruptcy Estate Returns When a married couple file a joint bankruptcy petition, their estates are effectively consolidated for administrative purposes. However, these estates are treated as separate entities for tax purposes and must file separate bankruptcy returns. Correspond with Letter 177C when any of the following conditions exist: Form 1041 is received with two Form 1040 attached. Form 1041 is received with a Form 1040 Joint return (Married filing jointly box is checked in the "Filing Status" section at the top of Form 1040). Note: Taxpayers claiming "Administrative Consolidation" require correspondence. If Then Form 1041 is received with either two Form 1040 returns (married couple) or one "Joint" Form 1040, Correspond with Letter 177C (using the correct paragraph) to inform the taxpayer that they must file two separate Form 1041 returns. Two Form 1041 are received with one "Joint" Form 1040, Separate the two Form 1041 returns. Photocopy Form 1040. Attach the original Form 1040 to one Form 1041 and the photocopy to the other Form 1041. Process as filed.

# Individual Bankruptcy Cases - Special Procedures

3.11.14.10.2.4 (01-01-2024) Individual Bankruptcy Cases - Special Procedures Bankruptcy estates are created at the commencement of the bankruptcy case. Under Chapter 7, Liquidation, and 11, Reorganization, this estate is a new entity, separate from the individual taxpayer(s). The estate is represented by a court appointed trustee or by a debtor in possession who manages the estate for the benefit of any creditor. The taxes of the individual who filed bankruptcy have nothing to do with the taxes of the estate. However, if the individual chooses to file two short year returns, any balance due for the first short year return will be collected from the estate. If the Signature section of Form 1041 has the same name as the name in the Entity section, examine the return for the following: If Then Taxpayer notates "DEBTOR IN POSSESSION" , Chapter 11, Continue editing the return. Taxpayer notates "CHAPTER 7" or there is no indication of Debtor in Possession on a Numbered Return, Attach Form 4227 Notate "POSSIBLE FILING DISCREPANCY." Edit Action Code 320. Leave the return in the batch and continue editing. Taxpayer notates "CHAPTER 7" or there is no indication of Debtor in Possession on an Unnumbered Return, Do not continue editing the return. Withdraw the document from the batch. Attach Form 4227 and notate "POSSIBLE FILING DISCREPANCY." Route the document to Entity Control.

# Chapter 12 Bankruptcy Returns

3.11.14.10.2.5 (01-01-2025) Chapter 12 Bankruptcy Returns The Family Farmer Bankruptcy Act of 1986 was designed specifically to address the "debt plight" that farmers found themselves in after the inflationary period of the 1970s. When returns are received with an indication of "CHAPTER 12" or "FAMILY FARMER" : Send the return back to the taxpayer. Inform the taxpayer of their non-filing requirement using the following language: "FORM 1041 MUST NOT BE FILED. THERE IS NO REQUIREMENT TO PREPARE A FEDERAL INCOME TAX RETURN ON BEHALF OF THE BANKRUPTCY ESTATE AS THERE IS NO SEPARATE ENTITY FOR TAX PURPOSES."

# Corporation or Partnership Bankruptcy

3.11.14.10.2.6 (01-01-2025) Corporation or Partnership Bankruptcy Filing requirements for corporations and partnerships are as follows: Corporations - Form 1120 (U.S. Corporation Income Tax Return). Partnerships - Form 1065 (U.S. Partnership Return of Income). If either of the Bankruptcy boxes are checked in Section A (Type of Entity) and there is an indication that a Form 1120, or Form 1065 must have been filed (i.e., the form is attached or the name of the entity has terms such as "CORPORATION" , "CORP" , "PARTNERSHIP" , etc.), process as follows: If Then Numbered Returns, Continue editing the return. Attach Form 4227 and notate "POSSIBLE FILING DISCREPANCY" . Edit Action Code 320. Leave the return in the block. Unnumbered Returns, Do not continue editing the return. Attach a Form 4227 and notate "POSSIBLE FILING DISCREPANCY" . Withdraw the document from the batch. Route the document to Entity Control. Through research or correspondence with the filer, Entity will decide if the filer must file a Form 1041, Form 1120, or Form 1065. If Then Form 1041 is returned from Entity with a new EIN present (decided that Form 1041 must have been filed), Continue editing the return. Form 1041 is returned from Entity without an EIN present, Release return for processing. Form 1041 will go UPC 329 and be referred to Entity Unpostables.

# Prompt Assessment (Form 4810)/Prompt Determination

3.11.14.10.3 (01-01-2026) Prompt Assessment (Form 4810)/Prompt Determination Identification must be made for "Prompt Assessment" or "Prompt Determination" of tax liability to ensure that the crucial 60 and 180 day deadlines are met timely by Compliance. A Prompt Assessment is requested either in the form of a letter or on Form 4810 Request for Prompt Assessment Under IRC 6501(d): If And Then A Prompt Assessment is not attached to a tax return, Forward the Prompt Assessment request to Examination. A Prompt Assessment request is attached to a tax return, A TC 150 has not posted for that return, or Process the return and forward the Prompt Assessment request to Examination with a copy of the tax return. Reminder: Edit Audit Code 4 and an Working Trail. See Figure 3.11.14-7, Request for Prompt Determination (Form 4810 . A Prompt Assessment request is attached to a tax return, A TC 150 has posted for that return, Note: The "Returns listed above" box on the Form 4810 must be checked if the TC 150 has posted. Stop editing and move Form 4810 to the front of the return and forward to Examination. Figure 3.11.14-7 Request for Prompt Determination (Form 4810)Figure 3.11.14-7 shows an example of a Tax Year 2025 Request for Prompt Determination (Form 4810).Pictured is the top part of a completed Form 1041, a folded Form 4810, Request for Prompt Assessment showing the top and bottom portions and a Form 4227.The Form 1041 shows an edited Audit Code 1-4 and a Working Trail COPY TO EXAM.A Form 4227, Intra-SC Routing or Routing Slip is completed with Examination Audit and BMF check boxes marked. Please click here for the text description of the image. If a request for Prompt Determination under Section 505(b) of the U.S. Bankruptcy Code is attached to the return and addressed to the Submission Processing Campus, decide if the request and return was processed through the Centralized Insolvency Operation Rev. Proc. 2006-24: If Then There is an indication that the request was processed through the Centralized Insolvency Operation (CIO), e.g., the return has a copy of a letter addressed to CIO, Continue editing the return. There is no indication that the request was processed through the CIO, Photocopy the return and attachments, mark the copy PHOTOCOPY DO NOT PROCESS and forward the copy to CIO at: 2970 Market St. Stop 5-Q30.133 Philadelphia, PA 19104-5016 Edit working trail in the left-hand margin of the Form 1041"COPY SENT TO INSOLVENCY." Continue processing the original return. See Figure 3.11.14-8, Request for Prompt Determination (Under Section 505(b). Figure 3.11.14-8 Request for Prompt Determination (Under Section 505B)Figure 3.11.14-8 shows an example of a Request for Prompt Determination (Under Section 505(b)).Pictured is the top part of a current year Form 1041 and a letter requesting a prompt determination. The letter reads as follows: Dear IRS, Enclosed please find a copy of Form 1041 for the period ended December 31, 2025, showing a zero balance due.Pursuant to 11 U.S.C, Section 505(b), I hereby request a prompt determination of any unpaid liability for the above return.I, Donald F. Osprey, Trustee for Bankruptcy of the above named Debtor, declare under penalties of perjury the foregoing is true and correct to the best of my knowledge and belief. Sincerely, Donald F. Osprey, Trustee. Please click here for the text description of the image.

# IRC 663(c) - Separate Share Tax Rule Trust (Form 1041)

3.11.14.10.4 (01-01-2022) IRC 663(c) - Separate Share Tax Rule Trust (Form 1041) If Form 1041 is received with the notation "SEPARATE SHARE" and there are supporting returns shown as copies for information purposes: Research (following local procedures) to decide if TC 150 is present. It is possible that the original return has become detached during batching. If Then TC 150 has posted, Route the "Separate Share" Form 1041 to the Research function for association with the original return. TC 150 has not posted, and entries are present on entire Page 1, "X" through the supporting documents and leave them attached to the return, Continue normal processing of the return. TC 150 has not posted, and entries are present on Lines 20 through 27, Correspond for the original Form 1041.

# Nontaxable Returns (No Line Entries)

3.11.14.10.5 (01-01-2016) Nontaxable Returns (No Line Entries) Process Form 1041 as an original return if it is received with all the following: No tax data entries and no tax data information attached. A notation on the return such as "NOT LIABLE." A taxpayer signature.

# ♦Re-Entry Document Procedures♦

3.11.14.10.6 (01-01-2025) ♦Re-Entry Document Procedures♦ A return posted to the wrong account or module or attempting to post must be reprocessed to post to the proper account or module. Some re-entry returns will have originally been filed electronically through Modernized E-file (MeF). These returns will be shown by the presence of Mod E-file printouts in lieu of an actual return. Do not correspond for missing signatures on these documents. Each re-entry return must have a Form 3893, Re-Entry Document Control, or Form 13596, Reprocessing Returns, attached. Form 3893 is used to re-input 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. Always leave Form 3893 or Form 13596 on the front of the return. It must remain as a permanent part of the document. Examine Form 3893 or Form 13596 to decide the editing needed to make the return processable. Caution: If the IRS Received Date is two year's and nine months or more from the Return Due Date, refer to Statute procedures prior to re-entering or reprocessing the return. See IRM 3.11.14.10.11, Statute Returns.

# ♦Form 3893 - Re-Entry Document Control♦

3.11.14.10.6.1 (01-01-2026) ♦Form 3893 - Re-Entry Document Control♦ Form 3893, Re-Entry Document Control, is used to re-input a return that has not posted to an account or module. 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. Circle the CCC "G" if present. Do not edit CCC "G" on amended returns. Do not send Letter 1382C if a request for reasonable cause is attached. If the return was not edited according to current processing instruction, circle any action codes, Computer Condition Codes and any other edit marks that are no longer applicable. Re-edit according to current processing instructions. If the return was edited according to current processing instruction, ensure that the information from Form 3893 is edited on the return. If Then Box 14, Remarks, Ensure that the information is edited to the return. Box 15, Process as, Circle any green rocker and edit marks that will show a receipt of remittance. Do not change any tax due amounts. Examine returns that have any color other than red editing in the tax data section to decide if the corrections are the result of improper perfection or taxpayer error. If Then Improper perfection, Edit the same correction in red/green (per local procedure) to the correct area. Taxpayer error, Leave the entries as shown on the document. An IRS Received date must be present on all re-input returns. See IRM 3.11.14.11 for editing the Received date. If Then IRS Received Date is not present, Edit an IRS received date to the middle of the return. Multiple IRS Received Dates are present, Circle all but the earliest date. When more information is still needed to make the return processable, prepare approved Correspondence Action Sheet, or Form 4227 for the correction (e.g., correspondence, research, etc.). Exception: Do not correspond for missing Schedules K-1. See IRM 3.11.14.17.2.4, Line 18 - Income Distribution Deduction (Schedule K-1). When perfection is not possible, edit Action Code 640 on the return and attach Form 4227 noting "PERFECTION NOT POSSIBLE" and leave in batch.

# ♦Form 13596 - Reprocessing Returns♦

3.11.14.10.6.2 (01-01-2026) ♦Form 13596 - Reprocessing Returns♦ 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. Circle CCC "G" if present. Don't edit CCC "G" on amended returns. Don't send Letter 1382C, Reprocessing Returns, if a request for reasonable cause is attached. If the return was not edited according to current processing instructions, circle any action codes, Computer Condition Codes and any other edit marks that are no longer applicable. Re-edit according to current processing instructions. If the return was edited according to current processing instructions, ensure that the information from Form 13596 is edited on the return. For Then TIN correction, Edit correct TIN on return. Tax Period correction, Edit correct Tax Period ending on return. Reasonable cause, Edit the correct Computer Condition Code: Edit CCC "R" if the "FTF" box is checked. Edit CCC "D" if the "FTP" box is checked. Examine returns that have any color other than red editing in the tax data section to decide if the corrections are the result of improper perfection or taxpayer error. If Then Improper perfection, Edit the same correction in red/green (per local procedure) to the correct area. Taxpayer error, Leave the entries as shown on the document. An IRS Received Date must be present on all reprocessed returns. See IRM 3.11.14.11 for editing the Received date. If Then IRS Received date is not present, Edit an IRS Received Date to the middle of the return. Multiple Received rates are present, Circle all but the earliest date received by the IRS. Circle any green rocker and edit marks that will show a receipt of remittance. When more information is still needed to make the return processable, prepare approved Correspondence Action Sheet or Form 4227, Intra-SC Reject or Routing Slip, for the proper correction (e.g., correspondence, research, etc.). Exception: Do not correspond for missing Schedules K-1. See IRM 3.11.14.17.2.4, Line 18 - Income Distribution Deduction (Schedule K-1).

# ♦Refund Returns (45 Day Jeopardy and High Dollar Refunds)♦

3.11.14.10.7 (02-24-2025) ♦Refund Returns (45 Day Jeopardy and High Dollar Refunds)♦ Document Perfection is responsible for identifying refunds and for initiating requests for manual refunds. Note: Expeditious processing of refund returns is critical if the 45-day period is about to expire. If Then A refund return is batched in a non-refund batch, Completely edit the return. Pull the return from the non-refund batch and merge into a refund batch using local procedures. Note: Follow the instructions below when the processing date is more than 20 days after the Received Date or the Return Due Date (whichever is later) OR the refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Note: "Refund" in this instruction means only the amount requested to be refunded to the taxpayer, not overpayments transferred to other periods. The processing date is more than 20 days after the Received Date or the Return Due Date (whichever is later) and the refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Note: "Refund" in this instruction means only the amount requested to be refunded to the taxpayer, not overpayments transferred to other periods or amount to be credited to the next year's tax. Unnumbered Returns: Pull the return from the batch. Code and edit the return as completely as possible. Edit Action Code 341. Give the return to the manager for Expedite processing. Figure 3.11.14-9, Refund Return - 45 Day Jeopardy. Numbered Returns: Code and edit the return as completely as possible. Edit Action Code 341. The refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: "Refund" in this instruction means only the amount requested to be refunded to the taxpayer, not overpayments transferred to other periods or amount to be credited to the next year's tax. Unnumbered Returns: Pull the return from the batch. Code and edit the return as completely as possible. Edit Action Code 341. Make a copy of the first two pages of the tax return along with any page of the return that appears suspicious. See IRM 3.11.14.2.8, Criminal Investigation (CI) Referrals. Edit a working trail "Copy to CI" , or "CI Referral" , or similar language in the lower left corner going vertically up the side of the return Expedite processing. Numbered Returns: Code and edit the return as completely as possible. Edit Action Code 341. Make a copy of the first two pages of the tax return along with any page of the return that appears suspicious. See IRM 3.11.14.2.8, Criminal Investigation (CI) Referrals. Edit a working trail "Copy to CI," or "CI Referral," or similar language in the lower left corner going vertically up the side of the return. Figure 3.11.14-9 Refund Return - 45-Day JeopardyFigure 3.11.14-9 shows an example of a return shown as a 45-day Jeopardy refund. This is an example of a completed Form 1041, Page 1 only. Text box at the top reads This return is being edited on May 15, 2026.IRS Received Date stamp shows 04-13-2026.Line 30b. Refund entry is $25,300.Action Code 341 is edited in lower left-hand margin.A text box at the bottom of Form 1041 reads Give the completely edited return to the manager. Please click here for the text description of the image.

# ♦Compliance Secured/Prepared Returns♦

3.11.14.10.8 (01-01-2025) ♦Compliance Secured/Prepared Returns♦ Compliance functions, Collection and Examination, secure returns from the taxpayer and also prepare returns if the taxpayer doesn't give them. Compliance notates: Prepared tax returns are notated with 6020(b) or SFR (Substitute for Return). Secured tax returns are notated with "TC 59X" or "ICS" (Integrated Collections System) or notated "Process as Original" with an attached Form 13133, Expedite Processing Cycle. The "Delinquent Return" box on Form 13133 must be checked. Note: If "RD" 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♦

3.11.14.10.8.1 (01-01-2025) ♦IRC 6020(b) - Prepared by Collection♦ When the taxpayer fails to file a required return, IRC 6020(b) is the authority for the IRS to prepare the return. These returns are shown by the notation: "PREPARED AND SIGNED UNDER AUTHORITY OF SECTION 6020(b) OF THE INTERNAL REVENUE CODE" which is found in the center bottom of Page 1 of the return. Returns must have an IRS Received Date. If missing, follow the normal procedures for editing the IRS Received Date, see IRM 3.11.14.11, Received Date. Returns must be signed by Compliance Function representatives. If not signed, route to Compliance using Form 4227, Intra-SC Reject or Routing Slip. Note: Starting July 1, 2013, the Revenue Officer's (RO) electronic or typed signature will be accepted as a valid signature on the return. Edit CCC "4" . See IRM 3.11.14.8.23, CCC 4 - IRS Prepared Return Under IRC 6020(b). Note: CCC "R" must not be used with CCC "4" . Edit CCC "D" if the Compliance Function representative notates: "DO NOT ASSESS FAILURE TO PAY PENALTY" and the return due date (without regard to extensions) is July 30, 1996, or prior. 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" . Don't correspond with the taxpayer for unprocessable conditions. If the return is unprocessable, edit CCC "3" and continue processing. Edit CCC "W" if the IRS Received Date is more than 2 years and 9 months after the Return Due Date. Do not send the return to Statute Control. See IRM 3.11.14.10.11, Statute Returns.

# ♦Collection Secured♦

3.11.14.10.8.2 (01-01-2025) ♦Collection Secured♦ These returns are shown by the notations "TC 59X" or "ICS" . Don't edit CCC "G" on these returns. Use approved Correspondence Action Sheet to correspond for conditions that cannot be processed, e.g., missing signatures, missing schedules, etc. Edit CCC "W" if the IRS Received Date is more than 2 years and 9 months after the Return Due Date. Do not send the return to Statute Control. Reminder: If there is indication a penalty or penalties must be suppressed, edit the correct Computer Condition Code(s). See IRM 3.11.14.8.17, CCC "W" - Return Cleared by Statute Control.

# ♦Examination Prepared♦

3.11.14.10.8.3 (01-01-2022) ♦Examination Prepared♦ These returns are shown by the notation "SFR" or "SUBSTITUTE FOR RETURN" on Page 1. Return must have an IRS Received Date. If no IRS Received Date is present, follow the normal procedures for editing the IRS Received Date. See IRM 3.11.14.11, Received Date. Do not correspond with the taxpayer for unprocessable conditions. If the return is unprocessable, edit CCC "3" and continue processing. If Form 13133, Expedite Processing Cycle, is attached, edit the Computer Condition Codes that are checked on the form. Note: Do not enter CCC "D" unless the return due date (without regard to extensions) is July 30, 1996, or prior, even if the CCC "D" box is checked on Form 13133. Edit CCC "W" if the IRS Received Date is more than 2 years and 9 months after the Return Due Date. Do not send the return to Statute Control. See IRM 3.11.14.10.11, Statute Returns.

# ♦Examination Secured♦

3.11.14.10.8.4 (01-01-2025) ♦Examination Secured♦ These returns are shown by the notation "Process as Original" on page 1 of the return and a Form 13133, Expedite Processing Cycle, attached with the "Delinquent Return" box checked. Do not edit CCC "G" on these returns. Use approved Correspondence Action Sheet to correspond for conditions that cannot be processed (e.g., missing signatures, missing schedules, etc.). Edit the Computer Condition Codes that are checked on Form 13133. Note: Do not enter CCC "D" unless the return due date (without regard to extensions) is July 30, 1996, or prior, even if the CCC "D" box is checked on Form 13133. Edit CCC "W" if the received date is more than 2 years and 9 months after the Return Due Date. Do not send the return to Statute Control. See IRM 3.11.14.8.17, CCC "W" - Return Cleared by Statute Control. Reminder: If Form 13133 (or something similar) shows a penalty or penalties must be suppressed, edit the correct Computer Condition Code(s). See IRM 3.11.14.8, Computer Condition Codes (CCC).

# Section 965 Returns Form 1041 and Form 1041-N (TY 2017 through 201911)

3.11.14.10.9 (01-01-2026) Section 965 Returns Form 1041 and Form 1041-N (TY 2017 through 201911) Section 965 (Repatriation Provision), Treatment of deferred foreign income upon transition to participating exemption systems of taxation for U.S. Shareholders of Specified Foreign Corporations per Tax Cuts Jobs Act (Tax Reform), Provision Section 14103, Public Law 115-97 (H.R.1). Taxpayer that made an IRC 965(i) election must file Form 965-A with their Form 1041 each year until the IRC 965(i) net tax liability is assessed in full. Form 1041 filers that made an IRC(h) election in the year of inclusion or in the year of the triggering event must file Form 965-A each year with their Form 1041 until the IRC 965 liability is paid in full. Taxpayers reporting a 965 tax on their return can elect one of the following two elections: Section Description 965(h) Election to pay tax liability in installments. Note: Taxpayers can only make a 965(h) election after 201911, if they made a 965(i) election during the inclusion period 201712 - 201911 and subsequently experienced a triggering event, then and only then can a 965(h) be made after 201911 (in the year of the triggering event) to pay the triggered liability in installments. 965(i) Election to defer payment until triggering event. Note: Taxpayers cannot make a 965(i) election no later than 202012. Edit CCC "J" if the return shows a Section 965 as follows: Caution: The taxpayer is ONLY reporting a 965 installment payment being made towards a 965(h) election that was made during the inclusion period (201711 - 201911) on Form 965-A or Form 965-B attached to the reporting year return, a CCC" J" should NOT be edited. If Then Tax Period is 202012 and later All of the following apply: Amount on Line 25, Form 1041 (Line 19, Form 1041-N). Amount on Line 15, Sch. G, Part II, Form 1041. Form 965-A attached Part 1 Line 4, Columns (a) tax year present, (b) through (e) no data, and (f) has an amount. Tax Period is 201912 - 202011 Any of the following apply: Amount on Line 25, Form 1041 (Line 19, Form 1041-N). Amount on Line 15, Sch. G, Part II, Form 1041. Form 965-A attached Part 1 Line 3, Columns (a) tax year present, (b) through (e) no data, and (f) has an amount. "Section 965" or "965 Tax" (or similar language) notated on the return, attachments, or statements. Tax Period is 201812 - 201911 Any of the following apply: Amount on Line 24, Form 1041 (Line 19, Form 1041-N). Amount on Line 25f, Form 1041. Form 965-A attached Part 1 Line 2, Columns (a) tax year present, (b) through (e) no data, and (f) has an amount. "Section 965" or "965 Tax" (or similar language) notated on the return, attachments, or statements. Tax Period is 201712 - 201811 Any of the following apply: Form 965-A attached and: Amount on Line 1, Columns (a), (j) or (k). Amount on Line 1, Columns (f), Part II. "Section 965" or "965 Tax" (or similar language) notated on the return, attachments, or statements. Edit CCC "B" if the return has a Section 965(i) election listed as follows: If Then Tax Period is 202012 - 202211, Form 965-A attached and both entries are present: Line 4, Column (e), Part I. Line 4, Column (f), Part III, yes box marked. Tax Period is 201912 - 202011, Form 965-A attached and both entries are present: Line 3, Column (e), Part I. Line 3, Column (f), Part III, yes box marked. Tax Period is 201812 - 201911, Form 965-A attached and both entries are present: Line 2, Column (e), Part I. Line 2, Column (f), Part II, yes box marked. Tax Period is 201712 - 201811, Form 965-A attached and both entries are present: Line 1, Column (e), Part I Line 1, Column (f), Part II, yes box marked. If CCC "J" or "B" (Section 965(i) Election) was edited on a Tax Period 201712 - 201811 return, edit as follows: If Then Form 965-A is attached and both entries are present: Line 1, Column (f), Part I Line 1, Column (g), Part 1, Yes box marked. Edit Action Code 460 on the return. Attach to return Form 4227 to route to ERS Rejects. Notate on Form 4227 "Sec. 965 CCC B/J" .

# Tax Period 202112 and later- Line 25 and Line 15, Schedule G, Form 1041 (Line 19, Form 1041-N - 202112-202212. Line 17 202312 and later)

3.11.14.10.9.1 (01-01-2026) Tax Period 202112 and later- Line 25 and Line 15, Schedule G, Form 1041 (Line 19, Form 1041-N - 202112-202212. Line 17 202312 and later) Line 25, Form 1041 (Line 19 Form 1041-N) edit as follows: If Then Amount is present on Line 25 (Line 19 202112 - 202212. Line 17 202312 and later Form 1041-N), Accept the data present and continue to process the return. Line 15 (Schedule G) edit as follows: If Then Amount is present on Line 15, Schedule G, Accept the data present and continue to process the return.

# Tax Period 202012 - 202111 - Line 25 and Line 15, Schedule G, Form 1041 (Line 19, Form 1041-N)

3.11.14.10.9.2 (01-01-2023) Tax Period 202012 - 202111 - Line 25 and Line 15, Schedule G, Form 1041 (Line 19, Form 1041-N) Line 25, Form 1041 (Line 19 Form 1041-N) edit as follows: If And Then Amount is present on Line 25 (Line 19 Form 1041-N), Form 965-A is not attached, Correspond for Form 965-A. Amount is present on Line 25 (Line 19 Form 1041-N), Form 965-A is attached, If the amount is present on Form 965-A, Part II, Column (k): If the amount is equal to Line 25 (Line 19 Form 1041-N) amount, do not edit and continue processing the return. If the amount is not equal to Line 25 (Line 19, Form 1041-N) amount, correspond for explanation of the difference. If the amount is not present on Form 965-A, Part II, Column (k), correspond for discrepancy. Amount is not present on Line 25 (Line 19 Form 1041-N), Form 965-A is attached, If amount is present on Form 965-A, Part II, Column (k): If the amount is in the total for Line 28, Form 1041 (Line 19 Form 1041-N), edit the Line 4 amount to Line 25, Form 1041 (Line 21, Form 1041-N). If the amount is not in the total of Line 28, Form 1041 (Line 21, Form 1041-N), correspond for explanation. Line 15 (Schedule G) edit as follows: If And Then Amount is present on Line 15, Schedule G, Form 965-A is not attached, Correspond for Form 965-A. Amount is present on Line 15, Schedule G, Form 965-A is attached, If amounts are present on Line 4, Form 965-A, Part I, Column (f) and triggered liabilities on Lines 5-8: If the amount is equal to Line 15, Schedule G amount, do not edit and continue processing the return. If the amount is not equal to Line 15, Schedule G amount, correspond for explanation of the difference. If no amounts are present on Line 4, Form 965-A, Part I, column (f) or no triggered liabilities on Lines 5-8, correspond for discrepancy. Amount is not present on Line 15, Schedule G, Form 965-A is attached, If amounts are present on Line 4, Form 965-A, Part I, Column (f) and triggered liabilities on Lines 5-8: If the amount is in the total for Line 26, Form 1041, edit the Line 4 amount to Line 15 Schedule G. If the amount is not in the total of Line 26, Form 1041, correspond for explanation.

# Tax Period 201912 - 202011 - Line 25 and Line 15, Schedule G, Form 1041 (Line 19, Form 1041-N)

3.11.14.10.9.3 (01-01-2023) Tax Period 201912 - 202011 - Line 25 and Line 15, Schedule G, Form 1041 (Line 19, Form 1041-N) Line 25, Form 1041 (Line 19 Form 1041-N) edit as follows: If And Then Amount is present on Line 25 (Line 19 Form 1041-N), Form 965-A is not attached, Correspond for Form 965-A. Amount is present on Line 25 (Line 19 Form 1041-N), Form 965-A is attached, If the amount is present on Form 965-A, Part II, Column (k): If the amount is equal to Line 25 (Line 19 Form 1041-N) amount, do not edit and continue processing the return. If the amount is not equal to Line 25 (Line 19, Form 1041-N) amount, correspond for explanation of the difference. If the amount is not present on Form 965-A, Part II, column (k), correspond for discrepancy. Amount is not present on Line 25 (Line 19 Form 1041-N), Form 965-A is attached, If amount is present on Form 965-A, Part II, column (k): If the amount is in the total for Line 28, Form 1041 (Line 19 Form 1041-N), edit the Line 3 amount to Line 25, Form 1041 (Line 21, Form 1041-N). If the amount is not in total of Line 28, Form 1041 (Line 21, Form 1041-N), correspond for explanation. Line 15 (Schedule G) edit as follows: If And Then Amount is present on Line 15, Schedule G, Form 965-A is not attached, Correspond for Form 965-A. Amount is present on Line 15, Schedule G, Form 965-A is attached, If amounts are present on Line 3, Form 965-A, Part I, Column (f) and triggered liabilities on Lines 5-8: If the amount is equal to Line 15, Schedule G amount, do not edit and continue processing the return. If the amount is not equal to Line 15, Schedule G amount, correspond for explanation of the difference. If no amounts are present on Line 3, Form 965-A, Part I, column (f) or no triggered liabilities on Lines 5-8, correspond for discrepancy. Amount is not present on Line 15, Schedule G, Form 965-A is attached, If amounts are present on Line 3, Form 965-A, Part I, Column (f) and triggered liabilities on Lines 5-8: If the amount is in the total for Line 26, Form 1041, edit the Line 3 amount to Line 15 Schedule G. If the amount is not in the total of Line 26, Form 1041, correspond for explanation.

# Tax Period 201812 - 201911 - Line 24 and Line 25f, Form 1041 (Line 19, Form 1041-N)

3.11.14.10.9.4 (01-01-2023) Tax Period 201812 - 201911 - Line 24 and Line 25f, Form 1041 (Line 19, Form 1041-N) Line 24, Form 1041 (Line 19 Form 1041-N) edit as follows: If And Then Amount is present on Line 24, Form 1041 (Line 19 Form 1041-N), Form 965-A is not attached, Correspond for Form 965-A. Amount is present on Line 24, Form 1041 (Line 19 Form 1041-N), Form 965-A is attached, If the amount is present on Form 965-A, Part II, column (k): If the amount is equal to Line 24, Form 1041 (Line 19 Form 1041-N) amount, do not edit and continue processing the return. If the amount is not equal to Line 24, Form 1041(Line 19, Form 1041-N) amount, correspond for explanation of the difference. If the amount is not present on Form 965-A, Part II column (k)I, correspond for discrepancy. Amount is not present on Line 24, Form 1041 (Line 19 Form 1041-N), Form 965-A is attached, If amount is present on, Form 965-A, Part II, column (k): If the amount is in the total for Line 28, Form 1041 (Line 21, Form 1041-N), edit the Line 2 amount to Line 24, Form 1041 (Line 21, Form 1041-N). If the amount is not in total of Line 28, Form 1041 (Line 21, Form 1041-N), correspond for explanation. Line 25f, Form 1041 edit as follows: If And Then Amount is present on Line 25f, Form 1041, Form 965-A is not attached, Correspond for Form 965-A. Amount is present on Line 25f, Form 1041, Form 965-A is attached, If amounts are present on Line 2, Form 965-A, Part I, Column (f) and triggered liabilities on Lines 5-8: If the amount is equal to Line 25f, Form 1041 amount, do not edit and continue processing the return. If the amount is not equal to Line 25f, Form 1041 amount, correspond for explanation of the difference. If no amounts are present on Line 3, Form 965-A, Part I, column (f) or no triggered liabilities on Lines 5-8, correspond for discrepancy. Amount is not present on Line 25f, Form 1041, Form 965-A is attached, If amounts are present on Line 2, Form 965-A, Part I, Column (f) and triggered liabilities on Lines 5-8: If the amount is in the total for Line 26, Form 1041, edit the Line 2 amount to Line 25f, Form 1041. If the amount is not in the total of Line 26, Form 1041, correspond for explanation.

# Tax Period 201712 - 201811 - Section 965 Tax or 965 Election (Form 1040 and Form 1041-N)

3.11.14.10.9.5 (01-01-2023) Tax Period 201712 - 201811 - Section 965 Tax or 965 Election (Form 1040 and Form 1041-N) Edit as follows: If Then Any of the following apply: Form 965-A is attached, or "Section 965" or "965 Tax" (or similar language) notated on the return, attachments, or statements. "Section 965(i) Election" (or similar language) notated on the return, attachments, or statements, or A significant entry is present on page 1, Line 8, with notation "Section 965" (or similar). Exception: A significant entry is defined as any amount other than zero. Completely edit the return. Edit Action Code "460" . Attach Form 4227 to return. Notate "Sec 965" on Form 4227. Do not issue correspondence on the return. ERS will correspond for missing information.

# Qualified Settlement Fund Tax Returns (Form 1041)

3.11.14.10.10 (01-01-2025) Qualified Settlement Fund Tax Returns (Form 1041) The trustee of a Designated or Qualified Settlement Fund (QSF) generally must file Form 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B), instead of Form 1041. If a QSF has only one transferrer, the transferrer can elect to treat the QSF as a grantor type trust. To make the grantor trust election, the transferrer must attach an election statement to a timely filed Form 1041. At the top of the election statement, must be the notation "SECTION 1.468B-1(K) ELECTION" and has the transferrer's: Name, Address, TIN, and A statement the taxpayer will treat the QSF as a grantor type trust. If the filer notates that Form 1041 is for a "QUALIFIED SETTLEMENT FUND" or "SETTLEMENT FUND" , but lacks all the information listed in the preceding paragraph, decide if the document is numbered or unnumbered: If Then Numbered Returns, Do not continue editing the return. Edit Action Code 320. Attach Form 4227 and notate "POSSIBLE FILING REQUIREMENT DISCREPANCY" . Leave the return in the block. Unnumbered Returns, Don't continue editing the return. Attach Form 4227 and notate "POSSIBLE FILING REQUIREMENT DISCREPANCY" . Withdraw the document from the batch. Route the return to Entity. See Figure 3.11.14-10, Settlement Fund Return - Possible filing discrepancy. Figure 3.11.14-10 Settlement Fund Return - Possible filing discrepancyFigure 3.11.14-10 is an example of a Settlement Fund - Possible filing requirement discrepancy. Pictured is the top half of a completed Form 1041 with Form 4227, Intra-SC Reject or Routing Slip attached. Mary Grouse Settlement Fund is written in the name line on Form 1041. Form 4227 is completed with Entity Control, BMF, Review for necessary editing and Other (explain) check boxes marked. Possible Filing Requirement Discrepancy is written as the reason under Other (explain). Please click here for the text description of the image.

# ♦Statute Returns♦

3.11.14.10.11 (01-01-2026) ♦Statute Returns♦ Any return with a Received Date that is 2 years and 9 months or more after the Return Due Date is a potential statute control return. Note: Even amended returns. Route Statute returns to the Statute Control Unit daily or more often if needed. If any of the conditions listed below are present, do not route to Statute Control Unit for clearance. Instead, edit CCC "W" , and continue processing: Compliance IRC 6020(b) returns. Secured by Examination/Collections, secured by TE/GE, secured by TE/GE Employee Plan (EP) Exam. Returns with Transaction Code (TC) 59X or "ICS" notated on the face of the return see IRM 3.11.14.49, Routing Guide for Attachments, for more information. Returns showing substitute returns prepared by Examination (SFR) in top margin of the return. Returns with a stamp showing a previous clearance by Statute Control within the last 90. Return is a 2022 or 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 2022 or 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. If a return has any of the following computer paragraphs (CPs) or letters attached, do not route to Statute Control Unit for clearance. Edit CCC "W" if the return needs processing. See CP 259, Master File Generated 1st TDI Notice CP 959, Master File Generated 1st TDI Notice (Spanish version) CP 518, Final Notice - Return Delinquency Letter 112-C, Payment/Overpayment/Credit Applied; No Record of Return Filed Letter 282-C, Return Not Received: Copy Requested/Received Letter 2255-C, Delinquent Return (Forms 720, 1041, 1065, 1120) Letter 2284-C, Delinquent Return (Form 940, 941, 942, 943) If a return has a Form 12412, Operations Assistance Request (OAR), from TAS and the return is a potential statute control return but is not stamped cleared by Statute, give the return to your lead. The lead contacts the TAS employee listed on the OAR for rejection of the OAR back to TAS for clearance by the Statute Control Unit. 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. Statute returns are unprocessable until cleared by Statute Control. If Then The return is numbered, Edit Action Code 310 Leave the return in the batch and continue processing. The return is unnumbered, Don't continue processing, Pull the return from the batch. Attach Form 4227, Intra-SC Reject or Routing Slip, and route to Statute Control Unit. Edit CCC "W" if the Statue Control Unit stamps or shows clearance on the front of the return. See Figure 3.11.14-11, Statute Return. Figure 3.11.14-11 Examples of Returns Shown as a Statute ReturnFigure 3.11.14-11 shows three examples of returns shown as a Statute Return.The first example pictured shows the top part of a completed Form 1041, tax year 2022. The edited tax period 2212 is written in the top right corner of the return. The return is stamped (vertically) Statute Cleared 06-18-26 in the left margin next to Section A Type of entity. CCC W is edited in the middle part of Line 1. Also pictured, in Section A, the taxpayer checked the Simple Trust box and Fiduciary Code 2 is edited to the right of the box.The second example pictured shows the top part of a completed Form 1041, tax year 2021. The edited tax period 2112 is written in the top right corner of the return. TC 59X is written vertically in the left margin between Section A Type of entity and B (number of Schedules K-1). CCC W is edited in the middle part of Line 1. Also pictured, in Section A, the taxpayer checked the Simple Trust box and Fiduciary Code 2 was edited to the right of the box.The third example pictured shows the top part of a completed Form 1041, tax year 2020. The edited tax period 2012 is written in the top right corner of the return. I.C.S. is written vertically in the left margin of the return next to Section A Type of entity and B (number of Schedules K-1). CCC W is edited in the middle part of Line 1. Also pictured, in Section A, the taxpayer checked the Simple Trust box and Fiduciary Code 2 was edited to the right of the box. Please click here for the text description of the image. Follow the chart below to decide if CCC "W" is needed: If And Then The return Received Date is 2 years and 9 months or more after the Return Due Date, The return is stamped "No Statute Issue" , "Statute N/A," or a similar statement showing there is no statute issue, Edit CCC "W." The return Received Date is less than 2 years and 9 months from the Return Due Date, The return is stamped "No Statute Issue," "Statute N/A," or a similar statement showing there is no statute issue, Do not edit CCC "W."

# Foreign Address Returns (International)

3.11.14.10.12 (01-01-2022) Foreign Address Returns (International) Ogden Submission Processing Campus (OSPC) will process all foreign address returns. A foreign address is any address other than the 50 states and the District of Columbia. An Army Post Office (APO), Diplomatic Post Office (DPO) or Fleet Post Office (FPO) is not considered a foreign address. See IRM 3.11.14.14.5, Entity Perfection - Domestic Addresses. The determination of an International foreign address is based only on the address of the estate or trust found on Page 1 of the return. Don't consider a Form 1041 or Form 1041-QFT that has schedules or attachments showing that the beneficiary, trustee or shareholder has a foreign address. U.S. Possessions/Territories - The following U.S. Possessions/Territories are considered foreign addresses and must be shipped to OSPC for processing: American Samoa Federal States of Micronesia Guam Marshall Islands Northern Mariana Islands Palau Puerto Rico Virgin Islands (US) Consider a Form 1041 with any of the following attachments or indications to be an international return: Form 1040 with Form 2555 or Form 2555-EZ (Foreign Earned Income) Form 1040 with Form 4563 (Exclusion of Income for Bona Fide Residents of American Samoa) Form 1040 with Form 5074 (Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands) Form 8288B (Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests) Form 1040GUAM Form 1040 (PR) Form 1040-SS or Form 1040-SS(NMI) Exemption or exclusion of the Tax or Income due to an international treaty (not an American Indian Treaty) Note: An American Indian Treaty is not considered International. Section 911, 913, 931, or 933 of the Internal Revenue Code Treaty Trader or Fulbright Grantee Route all returns with a foreign address to OSPC for processing. Prepare Letter 86C to inform the fiduciary or trustee that the return was sent. When an international return is shown, discontinue perfection. Prepare Form 4227 and notate "PREPARE LETTER 86C IN DUPLICATE" . If there is a credit on the return, also, notate "CREDIT TRANSFER" on Form 4227. If Then Numbered Returns, Edit the Name Control. Edit Action Code 650. Leave the return in the block. Unnumbered Returns, Withdraw the return from the batch and forward for transshipment. Reminder: If the return is not date stamped, edit the Received Date.

# Blind Trust Returns (Form 1041)

3.11.14.10.13 (01-01-2022) Blind Trust Returns (Form 1041) Taxpayers who are presidential appointees are permitted to file their individual tax returns through a trustee of a blind trust. If there is any indication on the return or attachment, a General Power of Attorney, or Form 2848 attached that shows "Blind Trust" , see IRM 3.28.3, Individual Income Tax Returns. The POA, Form 2848 must be processed to the CAF to reflect the Blind Trust Indicator on Master File to ensure that no correspondence is generated to the taxpayer.

# Streamlined Filing Compliance Process (Ogden Only) (Form 1041)

3.11.14.10.14 (01-03-2023) Streamlined Filing Compliance Process (Ogden Only) (Form 1041) Effective July 1, 2014, the IRS started a new enhanced Streamlined Program for individual taxpayers who are voluntarily disclosing offshore accounts. Returns postmarked on or after July 1, 2014, will follow these Streamlined processing instructions. Caution: This only applies to 1041 returns for decedent estates in BMF To be considered for the Streamlined Program, the package of returns must have any or all the following characteristics: Package of returns addressed to Mail Stop 6063 AUSC. Note: Austin will transship Form 1041 returns to Ogden. "Streamlined" is written on return, Form 14653, Certification by US Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures, or Form 14654, Certification by US Person Residing I the United States for Streamlined Domestic Offshore Procedures, is attached. Taxpayer specifically mentions the "Streamlined" process in a letter. Note: If multiple tax years are batched together and doesn't have one of the above criteria, do not treat as streamlined. Re-batch, if necessary. Note: Only complete packages of Form 1041 original and amended will be transshipped to Ogden and if they need to correspond Ogden will do it. If the complete package has Form 1040 and Form 1041 returns, then Austin will do the required correspondence and add a copy of the reply with the Form 1041 return when it is transshipped. If the items below are not submitted, correspond using the 177C letter: Note: Only complete packages of Form 1041 original and amended will be transshipped to Ogden and if they need correspondence, Ogden will do it. The taxpayer is required to submit delinquent tax returns for the year's listed on the certification when a U.S. tax return is due. They can submit more than 3 year's returns. Exception: It the taxpayer attaches copies of returns or a statement showing that the other years were already filed, do not correspond. A completed Streamlined Form 14653, Form 14654, or an attachment containing the information must be signed under penalty of perjury. The completed certification (Form 14653, Form 14654, or substitute certification) must have the following: Original signature(s) of taxpayer(s) under the jurat. Statement certifying that taxpayer meets the eligibility requirements for the Streamlined Filing Compliance. Information related to the taxpayer's financial interests in foreign financial accounts. Explanation of the specific reasons for the failure to comply with tax and financial account reporting obligations, this only applies to Form 14654. If the items are not submitted with a Streamlined package, correspond using Form 13459, Correspondence Action Sheet: Attach Form 13459 below the entity area. Check all proper boxes. Edit correct action code, i.e., AC 211 or AC 215. Note: Only complete packages of Form 1041 original and amended will be transshipped to Ogden and if they need correspondence, Ogden will do it. If one return needs to be cleared by Statute, send all Streamline returns received from the taxpayer, do not separate. Follow normal coding instructions and normal Attachment Guide procedures. Caution: If the first page of each FBAR, Form TDF 90-22.1, doesn't have a received date, edit in MMDDYYYY format. Don't detach FBARs from the tax return. If correspondence is necessary for any return submitted as part of the "Streamlined" process, it is important to ensure that all returns submitted by each taxpayer be kept together. This means that if one return needs correspondence, that all returns in the submission must be kept with the suspended return and held together in the Suspense area. Once it was decided that a Streamlined Package is complete, the package is separated. Note: Each tax year must have a copy of the certification. If only the original certification is in the package, photocopies must be made to place with each return. When a completed Streamlined filing is received, edit the following Computer Condition Codes (CCC) and edit an audit trail on the return showing that the package was complete: D P R 8 Caution: Do not edit CCC D, R, and 8 if corresponding for a Streamline issue. Amended Streamlined Form 1041 returns will not be processed. Instead, they will be scanned into CII in Austin and worked by Ogden's AM. If amended 1041 Streamlined returns are received in Ogden, they will be scanned into CII with a special cover sheet assigned to a special employee number.

# Additional Perfection - Form 1041, Form 1041-QFT, and Form 1041N

3.11.14.10.15 (01-01-2025) Additional Perfection - Form 1041, Form 1041-QFT, and Form 1041N This subsection has instructions for coding other entries to Form 1041, Form 1041-QFT, and Form 1041-N. These entries are edited in the left margin next to: Line 10, Form 1041. Line 6, Form 1041-QFT. Line 6, Form 1041-N. Each entry will be preceded by the numeric for the applicable line. Edit entries in numeric order, such as "1 - 4" , "6 - 2" , and "7 - 3" . If Then Audit Code, Edit "1" followed by the correct Audit Code, e.g., "1 - 6" . See IRM 3.11.14.7, Audit Codes. Electing Small Business Trust Indicator (ESBT) (Form 1041), Edit "2" followed by the ESBT Indicator "1" , e.g., "2 - 1" . See IRM 3.11.14.10.15.1, Electing Small Business Trusts (ESBT). Pooled Income Fund (Form 1041), Edit "3" followed by the Pooled Income Code "1" , i.e., "3 - 1" . See IRM 3.11.14.10.15.2, Pooled Income Fund. Penalty and Interest Code, Edit "4" followed by the Penalty and Interest Code "1" , i.e., "4 - 1" . See IRM 3.11.14.10.15.3, Penalty/Interest Code. Installment Sale Indicator (Form 1041), Edit "6" followed by the correct Installment Sale Indicator, e.g., "6 - 2" . See IRM 3.11.14.10.15.4, Installment Sale Indicator. Historic Structure Code (Form 1041), Edit "7" followed by the Historic Structure Code "3" , e.g., "7 - 3" . See IRM 3.11.14.10.15.5, Historic Structure Code.

# Electing Small Business Trusts (ESBT)

3.11.14.10.15.1 (01-01-2022) Electing Small Business Trusts (ESBT) Edit "2 - 1" in the left margin next to Line 10 of Form 1041 for the Electing Small Business Trust (ESBT) Indicator if the "ESBT" box (in Section A) on page 1 of Form 1041 is checked or there is an indication of ESBT. See Figure 3.11.14-12, ESBT Indicator. Note: When two Form 1041 returns are received, staple up the ESBT part only Form 1041 return along with its attachments, unless the Form 1041 has entity information only. Then put the ESBT part Form 1041 return on top. Figure 3.11.14-12 ESBT IndicatorFigure 3.11.14-12 shows an example of editing the ESBT indicator. Pictured is the top half of a completed Form 1041. Section A, Type of Entity shows the Complex trust and ESBT boxes are checked. Fiduciary Code 3 was edited to the right of the Simple Trust and the ESBT indicator 1 is edited in the left margin next to Line 10 in 2 - 1 format. Please click here for the text description of the image. Delete any Schedule D with annotations such as alternative minimum tax, AMT, S-Corp part, EBST part, etc. Move deleted Schedule D out of the sequence order.

# Pooled Income Fund

3.11.14.10.15.2 (01-01-2016) Pooled Income Fund Edit "3 - 1" in the left margin next to Line 10 of Form 1041 1 if the "Pooled Income Fund" box (in Section "A" ) on page 1 of Form is checked. See IRM 3.11.14.13.3, Fiduciary and Trust Code Editing. Exception: Code return with Fiduciary Code "9" and do not edit "3 - 1" in the left margin if the "Pooled Income Fund" box in Section A and "the Described in Section 4947(a)(2)" box in Section E are both checked.

# Penalty/Interest Code

3.11.14.10.15.3 (01-01-2020) Penalty/Interest Code Edit "4 - 1" , when precomputed delinquency penalty and/or interest is shown on a return with a received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ as follows: In the left margin next to Line 10 of Form 1041, See IRM 3.11.14.18, Penalty and Interest Code Editing. In the left margin next to Line 6 of Form 1041-N. See IRM 3.11.14.47.2, Penalty and Interest Code Editing (Form 1041-N) .

# Installment Sales Indicator

3.11.14.10.15.4 (01-01-2022) Installment Sales Indicator Form 6252, Installment Sale Income, is used to report the sale of property on the Installment plan. Codes are based solely on the taxpayer response to Question "3" on Form 6252. Edit the Installment Sales Indicator in the left margin next to Line 10 of Form 1041 in "6 - N" format. See Figure 3.11.14-13, Installment Sales Indicator Code. Valid codes for Installment Sales Indicator are as follows: Code One Form 6252 Multiple Forms 6252 1 "YES" response to Question 3. At least one form has a "YES" response. 2 "NO" response to Question 3. All "NO" responses or a combination of "No" and/or blank responses. 3 "YES" and "NO" are both checked or Question 3 is blank. Question 3 is blank on all forms. Do not edit an Installment Sales Indicator Code if Form 6252 is attached to a nontaxable Grantor Trust or Bankruptcy Estate return. The Form 6252 information will be added on the individual tax return. Figure 3.11.14-13 Installment Sales Indicator CodeFigure 3.11.14-13 shows an example of editing an Installment Sales Indicator as described above. Pictured is the top part of Form 6252, Installment Sale Income, and the top half of a completed Form 1041. Form 6252 shows an arrow pointing to line 3 (Was the property sold to a related party (see instructions) after May 14, 1980? If No, skip line 4). An arrow is pointing to the marked No box. Based on the answer to the questions answered on Form 6252, an Installment Sale Indicator 2 is edited in the left margin next to Line 10 (Interest) on Form 1041 in 6 - 2 format. Please click here for the text description of the image.

# Historic Structure Code

3.11.14.10.15.5 (01-01-2026) Historic Structure Code Edit Code "7 - 3" in the left margin next to Line 10 of Form 1041 if Form 3468, Investment Credit, is attached, and there are entries present on any of the following lines that are ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡: See Figure 3.11.14-14, Editing Historic Structure Code for Form 3468. TY 2023 - 2024: If there are entries under Part VII, Line 1; specifically, Lines h, i or j. TY 2010 - 2022: If there are entries under Part III, Line 11; specifically, Lines e, f, or g. TY 2008 and 2009: If there are entries under Part III, Line 10; specifically, Lines e, f, g, h, i or j. TY 2006 and 2007: If there are entries on Line 1; specifically, Lines e, f, g, or h. TY 1996 - 2005: If there are entries on Line 1, specifically, Lines b or c. Figure 3.11.14-14 Editing Historic Structure Code for Form 3468Figure 3.11.14-14 shows an example of editing the Historic Structure Code as described above. Pictured is the tax half of a completed Form 1041 and a folded 2024, Form 3468, page 12. Form 3468 shows the following line entries in Part VII Rehabilitation Credit and Energy Credit: Part VII, Line 1h. Pre 1936 buildings. Credit claimed on line 11e is $1,000.Part VII Line 1i. Certified historic structures. Credit claimed on line 11f is $1,200.A text box reads Edit 7-3 to the left of line 10 on Form 1041 if any of Lines 11e through 11f, Form 3468 is $1,000 or more.Form 1041 shows the Historic Structure Code 3 is edited to the left of Line 10 on Form 1041 in 7 - 3 format. Please click here for the text description of the image.

# Elective or Deemed Payment Election (DPE) and Credit Transfers (TXP 202212 - 202311)

3.11.14.10.16 (01-01-2025) Elective or Deemed Payment Election (DPE) and Credit Transfers (TXP 202212 - 202311) Under the Inflation Reduction Act (IRA) of 2022 and CHIPS and Science Act of 2022, the taxpayer can elect to: Take certain credits as an "Elective or Deemed Payment Election." Transfer a credit to another taxpayer. Claim the credit as a General Business Credit. For Tax Periods 202212 - 202311 - Identify an Elective or Deemed Payment Election when the taxpayer writes "IRA22DPE" on Form 3800, an attachment or on any of the following lines: Form 2022 Lines Form 1041 Schedule G, Part II, Line 16a Form 1041-N Part II, Line 20 Form 1041-QFT Part II, Line 17 When a return is identified with an "Elective or Deemed Payment Election," do the following: Completely edit the return. Edit RPC "J." Place a flag at the top of the return and attach the "IRA22 DPE/TRE Reminder" sheet to the return. Note: P&A will provide the pre-printed half-sheets for C&E to use. Give the return to the lead. The lead will have the returns re-batched with "DPE" in the batch ID. For Tax Periods 202212 - 202311 - Identify a "Credit Transfer" when the taxpayer writes "IRA22TRE" on Form 3800, an attachment, or at the top of the return or on an attachment. Do the following: Completely edit the return. Edit RPC "K." Place a flag at the top of the return and attach the "IRA22 DPE/TRE Reminder" sheet to the return. Note: P&A will provide the pre-printed half-sheets for C&E to use. Give the return to the lead. The lead will have the returns re-batched with "TRE" in the batch ID. Note: A return can have both an RPC "J" and an RPC "K." Treat taxpayers who claim the credit on Form 3800 with no other indication of claiming the "Elective or Deemed Payment Election" or "Credit Transfer" as normal. See IRM 3.11.14.22.2.2, Schedule G, Line 2b - General Business Credit Form 3800.

# ♦Received Date♦

3.11.14.11 (02-24-2025) ♦Received Date♦ The date a document is received in the Campus or IRS Office is the date stamped as the "IRS Received Date." All Form 1041, Form 1041-QFT, and Form 1041-N returns require an IRS Received Date. If Then The return is received within ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or extended due date, See Exhibit 3.11.14-4, Due Date Chart. The return is considered timely. The due date falls on a weekend or legal holiday, The return is timely if postmarked by the first business day following the weekend or legal holiday. The IRS Received Date stamp is after ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the legal or extended due date and the postmark or shipment date is on or prior to the legal or extended due date, Edit the IRS Received Date to agree with the postmark date. Note: The postmark or shipment date is returns delivered by: U.S. Postal Service, Private Delivery Services (PDS), e.g., Federal Express Corporation (FedEx) or United Parcel Service (UPS), "designated" by the IRS, and delivered via an acceptable type of service. See IRM 3.10.72 Receiving, Extracting and Sorting for a list of designated Private Delivery Services and types of 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 was attached to the return (must be in front of the envelope). Use the "Acceptance" date on the record to decide timeliness and follow normal editing procedures. See Exhibit 3.11.14-9, USPS. Track & Confirm If the record is not attached, do not edit When a return is delinquent and the taxpayer explains the return is late due to the rejection of a timely filed electronic return, check the return for a MeF rejection notification. Note: Taxpayers are instructed to notate in red in the top margin of the return REJECTED ELECTRONIC RETURN to show the timely filed return cannot be filed electronically. The notation can be anywhere on the return and is not required, but they must attach a copy of the MeF rejection notification. If a MeF rejection notification is not attached, perfection of the Received Date is not necessary. If a notification is attached, edit the IRS Received Date as follows: Note: The taxpayer has 10 days to resubmit an electronically filed return after being rejected and 10 days to submit a paper return after the last rejection. If And Then The postmark date is within 10 days of the date of the rejection, Edit the IRS Received Date to be the date of the rejection. Example: Postmark date is 03-22-2026 and first rejection is 03-12-2026. Change Received Date to 03-12-26. The postmark date is more than 10 days after the date of the rejection, Leave the IRS Received Date as is. Example: Postmark date is 03-23-2026 and first rejection is 03-12-2026. Leave the Received Date as is. Exception: Change the Received Date to the postmark date if the postmark date makes the return timely. There are two rejections, Within 10 days of one another and one is within 10 days of the postmark date, Edit the IRS Received Date to be the date of the first rejection. Example: Postmark date is 03-22-2026, the second rejection is 03-12-2026. The first rejection is 03-09-2026 Change the Received Date to 03-09-26. There are two rejections with the time between the first rejection and the second rejection greater than 10 days, The second rejection is within 10 days of the postmark date, Edit the IRS Received Date to be the date of the second rejection. Example: Postmark date is 03-22-2026, the second rejection is 03-12-2026. The first rejection is 03-01-2026 Change the Received Date to 03-12-26. There are two rejections, Not within 10 days of one another and not within 10 days of the postmark date, Leave the IRS Received Date as is. Example: Postmark date is 03-23-2026, the second rejection is 03-12-2026. The first rejection is 03-01-2026. Leave the Received Date as is. Exception: Change the Received Date to the postmark date if the postmark date makes the return timely. The IRS Received Date is or is not stamped on the face of the return. A valid IRS Received Date Stamp can consist of the following: The word "Received." Month (alpha or numeric) Day (for example), "1" or "01" Year - four digits "Area Office," Campus, "Field Office," "Taxpayer Assistance Center (TAC)" 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 has 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" . If the IRS Received Date stamp is not present or the date is illegible or invalid, edit the IRS Received Date in MMDDYY format in the middle of page 1 of the return. Edit the IRS Received Date according to the following priority: 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: If Then An envelope is not attached, Use the postmark date stamped on the face of the return. A document was returned for insufficient postage, Use the postmark date that corresponds with the correct delivery of the return. The postmark is missing, and the envelope is certified, Look for the "USPS.com Track & Confirm" record has been attached to the return (must be in front of the envelope). Use the acceptance date on the record to decide timeliness and follow normal editing procedures. See Exhibit 3.11.14-9, USPS Track & Confirm If the record is not attached, do not edit. An envelope has a USPS and private metered postmark, Always use the USPS postmark. An envelope has a foreign and private metered postmark, Always use the Foreign Postmark. An envelope has two private metered postmarks, Always use the latest private metered postmark. An envelope has only one private metered postmark, Use the private metered postmark. Service Center Automated Mail Processing System (SCAMPS) digital date. Revenue Officer's Signature date. Signature date only if within current year. Julian control date minus 10 days. Current date minus 10 days. Edit the IRS Received Date as follows: If Then A timely IRS Received Date is the only received date stamped on the return, Do not edit. Two or more dates are stamped on the return, Use the earliest IRS Received Date stamped on the return. Circle all other dates (handwritten or stamped) not needed for transcription. Note: Treat Received Dates that are circled out by another function as if they are not present. A Federal return is addressed to the IRS, but delivered to a state agency, Use the postmark date as the IRS Received Date. A Federal return is addressed to a state agency, Use the IRS Received Date stamp as the Received Date. The only Received Date on the return is a TAS or Chief Counsel Received Date, Circle out the TAS or Chief Counsel received date and edit the IRS Received Date according to instructions. Reminder: Check any envelope attached to the return for remittance. If found, hand carry remittance to manager. If a return was faxed to another area of IRS and then sent to Submission Processing for processing, do not edit the EEFax Date as the IRS Received Date. Edit a Received Date according to normal procedures. Caution: Do not use the EEFax Date as the IRS Received Date.

# Tax Period

3.11.14.12 (01-01-2016) Tax Period This subsection addresses the editing of the period for which the tax return is being filed.

# Tax Period - General

3.11.14.12.1 (01-01-2026) Tax Period - General All returns must have a tax period. Edit the Tax Period to the right of the preprinted calendar year in YYMM format. If Then The return is for the current processing calendar year, (e.g., 202512) No editing is necessary. The return is for a prior year, Edit the Tax Period. The taxpayer has notated a Tax Period other than the preprinted year on the return, Edit the Tax Period based on the taxpayer's indication, per paragraph (3). See Figure 3.11.14-15, Tax Period Editing. The tax period is missing, incomplete or illegible, Review the return or attachments for the correct period. If found, edit the Tax Period to the right of the preprinted Calendar Year in YYMM format. If unable to decide the Tax Period after researching, process the return for the year currently being processed. A Tax Period must end on the last day of a month. Ignore a minor discrepancy such as October 30 instead of October 31. The exceptions are a 52/53-week filer, and final and/or short period returns. The table below shows examples of tax periods: If Then Oct. 3, 2025 (52-53-week return) 2509 Oct. 3, 2025 (Final short period return) 2510 Oct. 25,2025 (52-53-week return) 2510 Oct. 25, 2025 (Final short period return) 2510 Nov. 30, 2025 2511 Dec. 31, 2025 2512 (No editing required for current calendar year returns) Feb. 28, 2025 2502 Tax periods reported under the 52/53-week rule cannot end more than 6 days prior to, and not more than 3 days after, the end of a month. In the edit format, use the numeric designation of the month, the last day of which is closest to the actual ending date. See Figure 3.11.14-16, 52–53 Week Tax Periods. If Then The Tax Period ending is not more than 3 days after the beginning of the month, Edit the previous month. Example: October 3, use the numeric designation for September, YY09. The Tax Period ending is not more than 6 days prior to the end of the month, Edit the month shown on the return. Example: October 25, use the numeric designation for October, YY10. Tax Period ending is more than 6 days prior to the end of the month or 3 days after the beginning of the month and is not a Final return, Correspond to decide the correct Tax Period ending. If no reply, edit CCC "3" and the latest tax period with no TC150 posted. If the Tax Period is more than 12 months or 53 weeks, correspond. On a "Final" return if the Tax Period's month and year is equal to or later than the Received Date's month and year (future return), edit the Tax Period to be one month prior to the Received Date. On a "Final" return, if the Received Date is after the short period due date but on or prior to the regular full tax period due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, edit CCCs "R" and "F." Note: Also, edit CCC "D" if the return is a Balance Due. Check all Tax Periods for the Statute of Limitation (2 years and 9 months from the normal due date of the return). See IRM 3.11.14.10.11, Statute Returns. A taxpayer is qualified to file a fiscal year return, when the return is for one of the following filers: Estate. Non-Exempt Charitable Trust under IRC 4947(a)(1) or IRC 501(a). One of the following notations is shown on the return IRC 671 through IRC 678 and IRC 443(b)(2). Note: Edit Audit Code "5" if the taxpayer is filing a Fiscal Year return and the return is not for one of the filers which are qualified to file on a Fiscal Year basis: Don't edit Audit Code "5" on any Final Return or on a shown Initial Return that has a Tax Period ending date in December (Calendar Year filer). Figure 3.11.14-15 Tax Period EditingFigure 3.11.14-15 shows three examples of editing the Tax Period.Example one shows the top of a current year Form 1041. The taxpayer has shown a calendar year return beginning January 1, 2025, and ending December 31, 2025. Example two shows the top of a current year Form 1041. The taxpayer shown a tax period beginning July 01, 2025, and ending June 30, 2026. The edited tax period of 2606 is edited above at the top of the form. Example three shows the top part of a completed 2024 Form 1041. The edited tax period of 2412 is written to the right of the preprinted Calendar Year.Tax Period Editing Instructions are written below the three examples: Example 1. Do not edit the Tax Period if the tax period covers the current calendar year.Example 2. If the taxpayer has shown a tax period other than the preprinted year on the return, edit the Tax Period based on the taxpayer's indication. Edit the Tax Period to the right of the preprinted calendar year, in YYMM format. These four digits define the year and month in which the Tax Period ends.Example 3. If the return is for a prior year, edit the Tax Period to the right of the preprinted Calendar Year in YYMM format. Please click here for the text description of the image. Figure 3.11.14-16 52–53 Week Tax PeriodsFigure 3.11.14-16 shows 3 examples demonstrating how to edit a return received for a 52-53 week period. Each figure pictures the top part of a completed Form 1041. Figure 1, The taxpayer has shown fiscal year beginning date 080225 and ending 080126 (with an arrow pointing to the ending date). The edited tax period of 2607 is written to the right of the preprinted calendar year.Figure 2, The taxpayer has shown fiscal year beginning date 102724 and ending 102625 (the ending date has an arrow pointing to it). The edited tax period of 2510 is written to the right of the preprinted calendar year.Figure 3, The taxpayer has shown fiscal year beginning date 041624 and ending 041525. Inset box has the text, Correspond to decide the correct Tax Period Ending Date.The following instructions are written below the examples above: 1 If the Tax Period ending date is not more than 3 days after the beginning month, edit the previous month.2 If the Tax Period ending date is not more than 6 days prior to the end of the month, edit the month shown.3 If the Tax Period ending date is more than 6 days prior to the end of the month or 3 days after the beginning of the month and is NOT a final, correspond with the taxpayer to decide the correct Tax Period Ending Date. Please click here for the text description of the image.

# "Final" Returns

3.11.14.12.2 (01-01-2026) "Final" Returns If the month of the Tax Period is equal to or later than the month of the Received Date (an early-filed return), edit the Tax Period using the month preceding the month of the Received Date. See Figure 3.11.14-17, Early Filed Final Return, and follow the table below: Tax Period Ending Received Date Edit As 5/31/2026 5/8/2026 2604 6/30/2026 6/3/2026 2605 9/30/2026 7/21/2026 2606 Figure 3.11.14-17 Early Filed "Final" ReturnFigure 3.11.14-17 shows an example of editing an early filed Final Return. Pictured is the top half of a completed 2025 Form 1041, page 1. The Final return check box is marked. The taxpayer has shown a beginning date January 1, 2025, and an ending date of August 29, 2025. Tax period 2507 is edited to the right of the preprinted calendar year. The complex trust box is checked in Section A (Type of Entity) and Fiduciary Code 3 is edited to the right of the Simple Trust box. The name control HAWK is underlined. A received date 082225 is stamped in the middle of the return. Computer condition code F is edited in the center of the return across from line 1 (Interest Income). Please click here for the text description of the image. If the Received Date is after the short-period due date but on or prior to the regular full tax period due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡: Edit CCC "R" and "F" . See Figure 3.11.14-18, Short-Period "Final" Balance Due Return. Note: Also, edit CCC "D" if the return is a Balance Due. Figure 3.11.14-18 Short-Period "Final" Balance Due ReturnFigure 3.11.14-18 shows an example of editing a Short period final return with a balance due. Pictured is the top three quarters of a completed 2025 Form 1041. The taxpayer shown a tax period beginning January 1, 2025, and ending July 17, 2025. The edited tax period 2507 is edited to the left of the preprinted calendar year. A received date 04152026 is stamped in the middle of the tax return. Computer Condition Codes R,F, and D, are edited in the white space below the entity section. Please click here for the text description of the image.

# "Initial" Short Period Returns

3.11.14.12.3 (01-01-2022) "Initial" Short Period Returns Initial returns are decided by one of the following: The taxpayer has checked the "Initial Return" box, below the address information of Form 1041. The "Date Entity Created," Section "D" is the same as the "Fiscal Year Beginning," top of Form 1041. If Then The taxpayer is filing an initial short period Fiscal Year return which begins and ends in the same year, Continue normal editing. Note: This is only done if it is not a "Final" return.

# Early Filed Returns - Full Year and Short Period

3.11.14.12.4 (01-01-2022) Early Filed Returns - Full Year and Short Period Never send an Early-Filed return back to the taxpayer. Note: When correspondence issues are present on an Early Filed return (FUT or Future), edit the Correspondence code to the return and edit the Suspense AC 480 on Form 4227. If the month of the Tax Period Ending (TPE) is the same or after the month of the Received Date, decide how early the return was filed: If Then The received date and the Tax Period Ending (TPE) are the same month, i.e., the Received Date and the TPE are both April, OR The received date is prior to the TPE by four months or less, i.e., the Received Date is in April, but the TPE is May, June, or July, Edit Action Code 480 (Early Filed - Suspense). Note: This is only done if it is not a "Final" return. See IRM 3.11.14.12.2, Final Returns. Completely edit the return. The received date is prior to the Tax Period Ending (TPE) by more than four months, i.e., the Received Date is April, but the TPE is August or later, and the tax period on BMFOLI agrees with the TPE on the return, Edit Action Code 211 (First Correspondence), Attach an approved Correspondence Action Sheet to request confirmation of the Tax Period Ending, and Completely edit the return. Edit the future tax period shown by the taxpayer.

# Short Period Returns - Editing Proof of Entitlement

3.11.14.12.5 (01-01-2026) Short Period Returns - Editing Proof of Entitlement A Short Period Return is one which covers a period of less than 12 months or 52 weeks. Do not process "Initial" or "Final" returns as a Change of Accounting. Process all other Short Period Returns as a Change of Accounting Period. In such cases, proof of entitlement to the change is required. Use the table below to identify and edit proof of entitlement. If And Then "Approved" Form 1128, Application to Adopt, Change, or Retain a Tax Year, 1. Command Code BMFOLE shows a Transaction Code (TC) 053 or TC 054, this is an indication that the Form 1128 was approved. Edit CCC "Y" and continue processing. See Figure 3.11.14-19, Proof of Entitlement. "Approved" Form 1128, Application to Adopt, Change, or Retain a Tax Year, 2. Command Code BMFOLE shows a Transaction Code (TC) 059, this is an indication that the Form 1128 has not been approved. The return is unprocessable. Follow the instructions for "Short Period Returns - Editing a Disapproved Application". See IRM 3.11.14.12.7, Short Period Returns - Editing a Disapproved Application (Form 1128). A statement the trust is changing tax period under IRC 1.442.1(c), Edit CCC "Y" . Edit Audit Code "3" . A copy of Form 1128 is attached citing Rev. Proc. 68-41 Edit CCC "Y" . Taxpayer has notated that the return was filed in compliance with IRC 1.1502-76, Edit CCC "Y" . Taxpayer has cited one of the following: Rev. Proc. 76-10, Rev. Proc. 85-58, Rev. Proc. 87-32, Rev. Proc. 2003-38, or Rev. Proc. 2006-46. Edit CCC "Y" . Proof of entitlement cannot be decided, See IRM 3.11.14.12.6, Short Period Returns - Missing Proof of Entitlement Figure 3.11.14-19 Proof of EntitlementFigure 3.11.14-19 shows an example of editing a return with a Proof of Entitlement (approved Form 1128). Pictured is the top third part of a completed 2025 Form 1041. The top of the return is notated Rev. Proc. 2006-46. FID Code 1 has been edited in Part A. The taxpayer has shown a tax period beginning January 1, 2025, and ending September 30, 2025. The edited tax period of 2509 is written to the left of the preprinted calendar year. CCC Y has been edited on the dotted portion of line 1. Please click here for the text description of the image.

# Short Period Returns - Missing Proof of Entitlement

3.11.14.12.6 (01-01-2022) Short Period Returns - Missing Proof of Entitlement If proof of entitlement is missing or the taxpayer states on the return or an attachment that an application was filed, but has not received a response, research IDRS using BMFOLE for approval or disapproval information and proceed as follows: If Then BMFOLE shows a Transaction Code 053 or 054, this is an indication that the Form 1128 was approved, Edit CCC "Y" BMFOLE shows Transaction Code 059, this is an indication that the Form 1128 was disapproved, The return is unprocessable. Follow the instructions for Short Period Returns - Editing a Disapproved Application. See IRM 3.11.14.12.7, Short Period Returns - Editing a Disapproved Application (Form 1128). BMFOLE doesn't show a Transaction Code: 053, 054, or 059, Correspond requesting confirmation of the Tax Period Ending.

# Short Period Returns - Editing a Disapproved Application (Form 1128)

3.11.14.12.7 (01-01-2022) Short Period Returns - Editing a Disapproved Application (Form 1128) If Form 1128 is disapproved, the return is considered unprocessable: Edit Action Code 211 and correspond. In the correspondence, instruct the taxpayer to file a return for the next regular full period due. Request a disposition of any remittance paid with the return or other credits which have posted to the short period module.

# Short Period Returns - Editing Form 1128 with No Indication of Approval or Disapproval

3.11.14.12.8 (01-01-2023) Short Period Returns - Editing Form 1128 with No Indication of Approval or Disapproval When a Form 1128 with no indication of approval or disapproval is attached and no proof of entitlement is present, research IDRS using BMFOLE for approval or disapproval and proceed as follows: If Then BMFOLE shows a Transaction Code 053 or 054, this is an indication that Form 1128 was approved, Do not Edit CCC Y and continue processing. BMFOLE shows a Transaction Code 059, this is an indication that Form 1128 was disapproved, The return is unprocessable. See Short Period Returns - Editing a Disapproved Application. See IRM 3.11.14.12.7, Short Period Returns - Editing a Disapproved Application (Form 1128). BMFOLE doesn't show Transaction Code 053, 054, or 059, Follow correction in (2) below. A Form 1128 with no approval or disapproval, discontinue processing Form 1041. Route Form 1041 and Form 1128 to Entity as directed in the paragraphs below: If Form 1128 is attached to a numbered return, enter Action Code 320. Attach Form 4227 and check the box for Entity Control. Edit the Form 1041 Received Date on Form 1128. (Do not detach Form 1128). If Form 1128 is attached to an unnumbered return, edit the Form 1041 Received Date on Form 1128, attach Form 4227 and route the return to Entity Control. (Do not detach Form 1128).

# Short Period Returns - with Prepaid Credits

3.11.14.12.9 (01-01-2024) Short Period Returns - with Prepaid Credits Route to Accounting for possible adjustment correction any return meeting both conditions below: A prepaid credit is claimed. Form Type Line Number(s) Form 1041, Schedule G, Lines 10, 11, 13, or 14 Form 1041-QFT Line 17 Form 1041-N Line 18 The return is a short period (not an initial or final return). Do the following when routing these returns to accounting: Edit Action Code "342" on return. Attach Form 4227, check the "Accounting" box and notate "Short period return with ES Credits" . Continue editing the return. Leave the return in the block. If the return shows a refund, see IRM 3.11.14.10.7, Refund Returns (45-Day Jeopardy and High Dollar Refunds).

# Type of Entity - Box A (Form 1041)

3.11.14.13 (01-01-2025) Type of Entity - Box A (Form 1041) The fiduciary checks the proper "Type of Entity" in Box "A" that describes the entity for the return being filed. In addition, they are instructed to check the ESBT (S-CORP part Only) box when ESBT (Electing Small Business Trusts) tax applies. The Fiduciary and Trust Code is to be decided from the box checked, other than the ESBT box. Note: If the ESBT box is checked, edit "2-1" in the left margin next to Line 10, Form 1041. See IRM 3.11.14.10.15.1, Electing Small Business Trusts (ESBT) . Every Form 1041 except amended returns, must be edited with a Fiduciary Code, and can be edited with a Trust Code. These codes identify for the Business Master File (BMF) the type of return being filed and generates the correct exemption amount to which the taxpayer is entitled.

# Fiduciary Codes

3.11.14.13.1 (01-01-2026) Fiduciary Codes Fiduciary Codes (FID Code) are based on taxpayer entry in any of the following: Box A of Form 1041, Type of Entity. Check mark in Described in Section 4947(a)(2) box, Section E of Form 1041. Check mark in Yes box on Line 9, Other Information, page 3 of Form 1041. Reminder: If the ESBT box is the only one checked in Section A, treat it as blank when determining Fiduciary Code. The Fiduciary Code consists of a single numeric digit. The valid FID Codes are 1, 2, 3, 4, 5, 6, 8, and 9. Edit the Fiduciary Code to the right of the Simple Trust box. See Figure 3.11.14-20, Editing Fiduciary Code. Figure 3.11.14-20 Editing Fiduciary Code "2"Figure 3.11.14-20 shows an example of editing a Fiduciary code as described above. Pictured is the top third of a completed Form 1041 showing the placement of the Fiduciary Code. Section A, Type of Entity, shows the Simple Trust box is checked and Fiduciary Code 2 is edited to the right of the Simple Trust box. At the top of the return is a text box that reads: Edit the Fiduciary Code to the right of the Simple Trust box. Underneath the text box is an arrow pointing to Fiduciary code 2. Please click here for the text description of the image.

# Trust Codes

3.11.14.13.2 (01-01-2022) Trust Codes Trust Codes are based on entries made by taxpayers in Section A of Form 1041, Type of Entity. The Trust Code consists of a single numeric digit. The valid Trust Codes are 1 and 3. Edit the Trust Code to the right of the Pooled Income Fund box. See Figure 3.11.14-21, Editing Trust Code. Figure 3.11.14-21 Editing Trust Code "3"Figure 3.11.14-21 shows an example of editing a Trust code as described above. Pictured is the top half of a completed Form 1041 showing the placement of the Trust Code. There are no line entries shown on Form 1041 (indication of nontaxable grantor trust). Section A. Type of Entity shows the Grantor Trust box is checked and Fiduciary Code 4 is edited to the right of the Simple Trust Box and Trust Code 3 is edited to the right of the Pooled Income Fund Box. There is a text box at the top of the return that reads: Edit the Trust Code to the Right of the Pooled Income Fund Box. Underneath the text box is an arrow pointing to the Trust Code 3. Please click here for the text description of the image.

# Fiduciary and Trust Code Editing

3.11.14.13.3 (01-01-2026) Fiduciary and Trust Code Editing On most returns, the Fiduciary and Trust Codes will be decided from the box checked in Section A, Type of Entity. When editing the Fiduciary and Trust Codes, Decide if the filer has notated Bankruptcy or GNMA (Government National Mortgage Association) on Name Line, or The Described in Section 4947(a)(2) box is checked in Section E of Form 1041. If Fiduciary Code Trust Code Bankruptcy is notated on the Name Line and the bankruptcy boxes are not checked, 5 None GNMA is present on the Name Line, 4 3 The Described in Section 4947(a)(2) box is checked, See Figure 3.11.14-22, Edit Fiduciary Code "9" . Reminder: Edit Audit Code "6" . 9 None Note: If the choice of multiple entities has the box for Section 4947(a)(2) Trusts, Fiduciary Code "9" takes priority. Figure 3.11.14-22 Edit Fiduciary Code "9"Figure 3.11.14-22 shows an example of editing Fiduciary Code 9 as described above. Pictured is the top half of Form 1041 showing the edit of Fiduciary Code 9. Section A, Type of Entity, shows the Complex trust box is checked and Fiduciary Code 9 is edited to the right of the Simple Trust box. Section E, the (Described in section 4947(a)(2)) box is checked. A text box reads: EDIT FIDUCIARY CODE 9. Also, edit Audit Code 6 to the left of Line 10 in 1 - 6 format. There are three arrows pointing away from the text box. One arrow is pointing to the Fiduciary Code 9, one arrow is pointing to Section E (Described in section 4947(a)(2)) checked box. The third arrow is pointing to the placement of Audit Code 6, in the left margin of Form 1041 next to Line 10, Interest, in 1 - 6 format. Please click here for the text description of the image. Edit the following Fiduciary and Trust Codes when there is a single entry other than the ESBT box in Section A: Reminder: If the ESBT box is checked, edit the ESBT indicator as "2-1" in the left margin next to Line 10, Form 1041. See IRM 3.11.14.10.15.1, Electing Small Business Trusts (ESBT). Type of Entity Fiduciary Code Trust Code Decedent's Estate 1 None Simple Trust 2 None Complex Trust 3 None Grantor Trust (taxable) Note: Entries other than 0 (zero) present on any of Lines 1 - 22 Reminder: Detach and process Schedules K-1. 2 3 Grantor Trust (nontaxable) Note: No entries present on any of Lines 1 - 22 Caution: DO NOT detach Schedules K-1. 4 3 Bankruptcy Estate - Chapter 7 5 None Bankruptcy Estate - Chapter 11 6 None Qualified Disability Trust Note: If "Section 642(b)(2)(C)" is notated on Line 20 of a TY 2001 Form 1041, edit Fiduciary Code "8" . 8 None Pooled Income Funds Note: Also, edit "3 - 1" in the left margin next to Line 10 of Form 1041. See IRM 3.11.14.10.15.2, Pooled Income Funds. 3 None The Pooled Income Fund and the "Described in Section 4947(a)(2)" , Section E, boxes are both checked. Note: Edit Audit Code "6" but DO NOT edit a Pooled Income Fund Indicator. 9 None The Pooled Income Fund box and GNMA is present on the name line. 4 3 If no boxes or multiple boxes are checked in Section A, examine the return and attachments to decide if the Described in Section 4947(a)(2) box is checked in Section E of Form 1041 or if there is an indication the return is for either a Generation Skipping Trust or Grantor Trust. Decide the Fiduciary and/or Trust Code: If no boxes or multiple boxes are checked in Box A And Edit FID Code Edit Trust Code The Described in Section 4947(a)(2) box is checked in, Section E, Reminder: Edit Audit Code "6" in "1-6" format to the left of Line 10, Form 1041. 9 There is an indication of a Generation Skipping Trust, Note: Indications of a Generation Skipping Trust are: The Yes box is checked on Line 9 of the Other Information Section (Page 3 of Form 1041), or Hand-drawn check box showing the return is for a GENERATION SKIPPING TRUST, or Notations on the Name Line such as Generation Skipping Trust, GST, Gen Skip, or similar statement. See Figure 3.11.14-23, Identifying and coding a Generation Skipping Trust return. 3 1 The Grantor Trust and Simple Trust boxes are both checked, 2 The Grantor Trust and Complex Trust boxes are both checked, No other indication of entry. 3 There is an indication of a Grantor Trust, No entry present on any Lines 1 - 23 Note: Delete Sch I and/or D when transcription line entries are present on those Schedules. 4 3 There is an indication of a Grantor Trust, Entry is present on any of Lines 1 - 23 and taxpayer, has noted IRC 671 - 678 on the return. Note: "X" any amount shown on Lines 1 - 23. Delete Sch I and/or Sch D when transcription lines are present on those Schedules. 4 3 There is an indication of a Grantor Trust, Entry is present on any of Lines 1 - 23 and taxpayer has not made any other indication. 2 3 Note: Indications of a Grantor Trust can also have the following notations on the return: IRC 671 - 678, pre-need Funeral Trusts, Rabbi Trusts, Receivership, Substantial Owner, Revocable Living Trust, Qualified Settlement Fund. Figure 3.11.14-23 Identifying and Coding a Generation Skipping Trust ReturnFigure 3.11.14-23 shows an example of identifying and coding a Generation Skipping Trust return as described above. Pictured is the top third part of a completed Form 1041 and the middle part of page 3 Other Information Section. Form 1041 shows the following: The Decedent's estate and Qualified disability trust boxes are checked. Fiduciary code 3 is edited to the right of the Simple Trust box and Trust Code 1 is edited to the right of the Pooled Income fund box. Page two, Form 1041, Other Information show boxes on lines 2, 3 and 4 are checked under the No column and the Yes box is checked for line 5 and 9. An arrow is pointing to the line 9 Yes box. Please click here for the text description of the image. If no boxes or multiple boxes are checked in Section A and Form 1041doesn't meet any of the conditions listed in paragraph (4) above, decide the proper Fiduciary and/or Trust Code based on the Exemption amount claimed on Line 21 of Form 1041 in the following priority order: If Line 21 Equals Edit Fiduciary Code $5,100 - TY 2025 $5,000 - TY 2024 $4,700 - TY 2023 $4,400 - TY 2022 $4,300 - TY 2021 $4,300 - TY 2020 $4,200 - TY 2019 $4,150 - TY 2018 $4,050 - TY 2017 $4,050 - TY 2016 $4,000 - TY 2015 $3,950 - TY 2014 $3,900 - TY 2013 $3,800 - TY 2012 $3,700 -TY 2011 $3,650 - TY 2009 - 2010 $3,500 - TY 2008 $3,400 - TY 2007 8 $600 1 $300 2 $100 3 $0, blank, or any entry that doesn't equal one of the allowable exemption amounts (listed above) Reminder: See paragraph (4) above, when the Described in Section 4947(a)(2) box is checked in Section E or if there is an indication the return is for a Generation Skipping Trust. 3

# Determining Taxable vs. Nontaxable Grantor Trusts

3.11.14.13.4 (01-01-2025) Determining Taxable vs. Nontaxable Grantor Trusts Filers must report only the part of the income, deductions, and credits which are taxable to the trust on Form 1041. If the taxpayer has filed a Form 1041 claiming to be a Grantor Trust, decide if part of the trust is taxable or nontaxable. Taxable Grantor Trust - Code as a taxable Grantor Trust if entries are reported on any of Lines 1 through 22 of Form 1041, even if Line 24, Total Tax, is a zero or negative amount. Nontaxable Grantor Trust - If the entire trust is a grantor trust, only the entity part of the return must be filled out. No entries must be present on any of Lines 1 through 22. If Edit Entries are present on any of Lines 1 - 22, Fiduciary Code 2 and Trust Code 3 No entries are present on any of Lines 1 - 22, Fiduciary Code 4 and Trust Code 3 Exception: Edit the return as a nontaxable Grantor Trust if the taxpayer has filed a GNMA Pool return but has erroneously entered Income and Deduction amounts that result in a zero or negative amount on Line 23. X Lines 1 through 22 and attachments to the return that support the line items, i.e., Schedule I and D.

# Grantor Trusts

3.11.14.13.4.1 (01-01-2025) Grantor Trusts In addition to the Grantor Trust box checked in Box "A" , Form 1041, other indications that the trust is a grantor trust would be if the taxpayer has notated "Pre-Need Funeral Trust, Receivership, Substantial Owner, Revocable Trust, Revocable Living Trust, Rabbi Trust, or IRC Section 671 - 678" in the Entity Section, as well as a Grantor Letter. Taxable Grantor Trust - Only part of the trust is treated as a Grantor Trust. The income, deductions, etc., that are taxable to the trust are reported on Form 1041. The amounts that are taxable directly to the grantor are shown on an attachment to the return. Note: The attachment must state the name, taxpayer identification number and the address of the person to whom the income is taxable, and setting forth the income, deductions and credits. Edit amounts from attached schedules or attachments to Lines 1 through 9, Form 1041 if necessary. Do not delete or X, Schedules I and/or D. Edit Installment Sale Indicator code if Form 6252 is attached. Edit any applicable CCC, Audit, etc., as shown by attachments to Form 1041. Edit E-File Waiver Indicator Code if Form 8948 is attached. Detach and process Schedules K-1 if attached to a Taxable Grantor Trust ("2-3" ). Correspond if missing and required. See IRM 3.11.14.17.2.4, Line 18 - Income Distribution Deduction (Schedule K-1). Nontaxable Grantor Trust - The entire trust is a Grantor Trust. Only the entity part of Form 1041 will be completed. Lines 1 through 22 must be blank or zero. The amounts that are taxable to the grantor are shown on an attachment to the return. Note: The attachment must state the name, taxpayer identification number and the address of the person to whom the income is taxable, and setting forth the income, deductions, and credits. Don't edit amounts from attached schedules or attachments to Lines 1 through 9, Form 1041. "X" Schedules I and/or D if transcription line entries are present. Don't edit Installment Sale Indicator code if Form 6252 is attached. Don't detach, process or correspond for Schedules K-1 that is attached to a Nontaxable Grantor Trust ("4-3" ). Edit E-File Waiver Indicator Code if Form 8948 is attached. Edit any applicable CCC and Audit codes as shown by attachments to Form 1041.

# ♦Entity Perfection - General♦

3.11.14.14 (01-01-2022) ♦Entity Perfection - General♦ The entity of Form 1041, Form 1041-QFT and Form 1041-N tax returns finds the taxpayer on the Business Master File. The entity area of the return has the following: Employer Identification Number (EIN) Name "In-care-of" Name Address

# ♦Bankruptcy♦

3.11.14.14.1 (01-01-2022) ♦Bankruptcy♦ If the Form 1041 shows bankruptcy, e.g., shows RECEIVER, TRUSTEE, or DEBTOR IN POSSESSION, in the entity area or on an attachment, route to Entity Control using local procedures (e.g., Form 13934, Entity Document / C&E Merge Transmittal). Edit return prior to routing to Entity Control. See IRM 3.11.14.10.2, Bankruptcy Estates.

# ♦Entity Perfection – Employer Identification Number (EIN)♦

3.11.14.14.2 (01-01-2023) ♦Entity Perfection – Employer Identification Number (EIN)♦ The EIN is a nine-digit number (XX-XXXXXXX) assigned to identify the estate or trust. The EIN is found in the upper right of the return: Box "C" of Form 1041. Box "2" of Form 1041-QFT. Box "2" of Form 1041-N. Decide if the EIN is correct as follows: If And Then EIN is missing, You can decide the correct EIN from the attachments and schedules, Edit the EIN to the correct location. See Figure 3.11.14-24, EIN Found Elsewhere on Return. The EIN is either a Preparer Tax Identification Number (PTIN) or Individual Tax Identification Number (ITIN), Unnumbered, Remove return from batch. Route to Entity Control following local procedures using Form 13934, Entity Document / C&E Merge Transmittal, for EIN assignment. The EIN is either a PTIN or ITIN, Numbered, Edit Action Code 320. Leave return in batch. Multiple EINs are present, Unnumbered, Remove return from batch. Route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal for EIN assignment. Multiple EINs are present, Numbered, Edit Action Code 320. Leave return in batch. The EIN has any of the following conditions and cannot be decided from attachments and/or schedules: Illegible. Missing. Other than 9 digits. All zeroes; or, All nines. Any consisting of all repeating numbers. Unnumbered, Circle out all illegible EINs, zeroes, and/or nines. Research IDRS. If found, edit to the proper location. If not found, route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal. The EIN has any of the following conditions and cannot be decided from attachments and/or schedules: Illegible. Missing. Other than 9 digits. All zeroes; or, All nines. Any consisting of all repeating numbers. Numbered, Circle out all illegible EINs, zeroes and/or nines. Edit Action Code 320. Leave return in batch. "PENDING" , "APPLIED FOR" , etc., is shown in the EIN area, Unnumbered, Research Integrated Data Retrieval System (IDRS). If found, edit to the proper location. If not found, route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal. "PENDING" , "APPLIED FOR" , etc., is shown in the EIN area, Numbered, Edit Action Code 320. Leave return in batch. Reminder: Fully edit return prior to routing. Figure 3.11.14-24 EIN Found Elsewhere on ReturnFigure 3.11.14-24 shows an example of editing an EIN when missing or misplaced as described above. Pictured is the top half of a current year Form 1041. The name line shows the Estate of Joseph E. Cardinal 00-6071224. The name control Card is underlined. The EIN is misplaced; an arrow pointing from Schedule K-1 to Box C, EIN. The Decedent Estate box in Section A box is checked and Fiduciary Code 1 is edited to the right of the Simple Trust box. Please click here for the text description of the image.

# Entity Perfection – Name Control

3.11.14.14.3 (02-24-2025) Entity Perfection – Name Control The Name Control consists of four characters or less. Valid characters are alpha, numeric, ampersand (&), hyphen (-), and blank. However, blanks are only valid in the last three positions. Disregard the word "THE" in the Name Control, only when followed by more than one word. Disregard the word TRUST. See Document 7071-A, Name Control Job Aid. Decide if the Name Control is correct from the "Name of Estate or Trust" line at the top-center of Form 1041 or the "Name of Trust" line on Form 1041-N and Form 1041-QFT. If no indication in the name line, use box A or if no box is checked use exemption amount to decide whether it's an estate or trust. If no indication, follow trust rules. See Job Aid Document 7071A, Name Control Job Aid - For Use Outside of the Entity Area, to decide the Name Control. Example: John Wren Trust, name control is WREN. Trust for Sparrow Lake, (Name control is SPAR. Special Needs Trust FBO John Doe, name control is DOE. Name controls for EINs assigned by the Mod IEIN program are different. If the EIN prefix begins with 20, 26, 27, 33, 45, 46, 47, 81, 82, 83, 84, 85, 86, 87, 88, 92, 93, or 99 and it is a TRUST return, then the name control will be the first four characters of the first name of the individual, in the Primary Name Line. The name control for an estate will still be the first four characters of the person's last name. See Document 7071A for instances where no name is present and more name control examples. Example: John Wren Trust, name control is JOHN J R Wren Trust, name control is JRWR. Trust for Sparrow Lake, name control is SPAR. Estate of John Smith, Deceased, name control is SMIT. Special Needs Trust FBO John Doe, name control is JOHN. John Paul Estate Special Needs Trust, name Control is JOHN, unless there are other indicators, a date of death or exemption for an estate, would be indications that it is an estate, then the Name Control of an estate would be PAUL. Edit the Name Control as follows: If And Then Able to decide the Name Control, Underline the Name Control. Unable to decide the correct Name Control, Unnumbered Research IDRS. If found, edit to the proper location. If not found, route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal. Unable to decide the correct Name Control, Numbered Edit Action Code 352. Leave return in batch. A return shows the taxpayer has filed bankruptcy, e.g., shows, "RECEIVER," Bankruptcy"TRUSTEE," or "DEBTOR IN POSSESSION" in the entity area or on an attachment, unless amended return, Route to Entity Control following local procedures. Do not edit Name Control. See IRM 3.11.14.10.2, Bankruptcy Estates. A Fiduciary or Fiduciary name change will be shown by a mark in the Change in fiduciary or Change in fiduciary name box(es) in Section F of Form 1041. If Then The Change in fiduciary or Change in fiduciary name box(es) is/are checked, or the Name and title of Fiduciary line was altered, i.e., crossed out and updated, Notate "TC 016" in the upper-left margin of Form 1041. Input TC 016 to update the Fiduciary information, using local procedures. Note: Prior to input of the TC 016, send the return for research to determine if the TC 016 is needed. Only the Change in fiduciary address box is checked, No editing needed. Note: ISRP will input the new address. See IRM 3.11.14.14.5, Entity Perfection - Domestic Addresses, if an In-Care-Of Name is also present. A Trust name change will be shown by a mark in the Change in trust's name box in Section F of Form 1041. If Then The Change in trust's name box is checked, Route to Entity using local procedures using Form 13934, Entity Document/C&E Merge Transmittal, after editing.

# ♦Entity Perfection – "In-Care-of" Name♦

3.11.14.14.4 (02-24-2025) ♦Entity Perfection – "In-Care-of" Name♦ An "in-care-of" name can be shown by the words "in-care-of" or the symbols "c/o" or "%" (percent). See Figure 3.11.14-25, Valid In-Care of Name. Ensure the "in-care-of" name is in the proper location, above the street address. If … Then … The "in-care-of" name is found on the street address line preceding the street address, No editing is required. The "in-care-of" name is found above the first name line or below the street address, Arrow the "in-care-of" above the street address. The "in-care-of" name is shown on an attachment, Edit the "in-care-of" name above the street address beginning with the "%" or "c/o" in the first position. The street address for the "in-care-of" name is different from the street address of the Fiduciary, 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 found on an attachment. Underline the second street address. Notate "TC 014" in the upper left margin. Pull the return for research/input of TC 014 by the Code and Edit Research Clerk. Note: A TC 014 must be input to retain the street address as a location address and the P.O. Box as the mailing address. Note: Always circle 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 change in the "in-care-of" name is decided by any of the following: A check mark in the "Change in the trust's name" box, or A check mark in the "Change in fiduciary's address" box, or An indication that the "in-care-of" name is changed, e.g., the taxpayer crossed out the original "in-care-of" name and added the new name or has entered a new "in-care-of" name in brackets. If Then An "In-care-of" name is changed but there is no indication of an address change, Edit the "In-care-of" name as shown above. Continue editing the return. An "In-care-of" name is present and the "Change in fiduciary's address" box is checked or there is an indication of an address change, Edit the "In-care-of" name as shown above. Correct the address. Continue editing the return. Figure 3.11.14-25 Valid In-Care of NameFigure 3.11.14-25 shows an example of a return with a valid In-Care of Name. Pictured is an example of the top half of Form 1041 calendar year return which shows the following: Simple Trust box checked in Section A, Type of Entity and Fiduciary Code 2 edited to the right of the Simple Trust box.Name of estate or trust: Sparrow Trust. Name control Spar is underlined. Name and title of fiduciary: Serena Sparrow TrusteeStreet address: % Carl Sparrow 1814 HeronCity, state, zip: Boise, ID 83708 Please click here for the text description of the image.

# ♦Entity Perfection - Domestic Addresses♦

3.11.14.14.5 (01-01-2025) ♦Entity Perfection - Domestic Addresses♦ Perfection of the address is necessary when the mailing address, Street or P.O. Box, is not easily shown. Exception: Do not perfect the address on amended returns (CCC "G" ). A business can have two addresses. One is the mailing address, and the other is the location address or physical location of the business. Note: BMF ISRP is not programmed for a mailing address and a location address. A TC 014 must be input into IDRS to capture both a location address and mailing address. The procedures for perfection of addresses are as follows: If And Then There is an indication on an attachment that the address was changed, Edit the new address in the Entity section of the return. See Figure 3.11.14-26, Address Change. Form 8822, Change of Address or Form 8822-B, Change of Address or Responsible Party - Business is attached, All the following applies: Mailing address information is the same, No location address is listed on Form 8822/8822-B, Line 7, No entry on Form 8822-B, Lines 8 or 9, Do not edit. Form 8822, Change of Address or Form 8822-B, Change of Address or Responsible Party - Business is attached, Any of the following applies: Mailing address information is different, Location address is listed on Form 8822/8822-B, Line 7, An entry is listed on Form 8822-B, Lines 8 or 9, Detach Form 8822 /Form 8822-B and route to Entity Control following local procedures using Form 13934, Entity Document/C&E Merge Transmittal. Both a P.O. box and a street address is shown, Notate "TC 014" in the upper-left margin. Pull the return for research/input of TC 014 by the Code and Edit Research Clerk. Note: A TC 014 must be input to retain the street address as a location address and the P.O. Box as the mailing address. See Figure 3.11.14-27, Both a P.O. Box and a Street Address. Two street addresses are shown, Note: An "in-care-of" name can have a street address other than the Fiduciary's street address Underline the second street address. Notate TC 014 in the upper left margin. Pull the return for research/input of TC 014 by the Code and Edit Research Clerk. Note: A TC 014 must be input to retain the street address as a location address and the P.O. Box as the mailing address. One street address is shown, The estate or trust changed the address to a P.O. Box, Notate "TC 014" in the upper-left margin. Pull the return for research/input of TC 014 by the Code and Edit Research Clerk. Note: A TC 014 must be input to retain the street address as a location address and the P.O. Box as the mailing address. The city and state are not shown on the return, but are shown on an attachment, Edit the city and state in the Entity section of the return. The Zip Code is missing or illegible, Is not available from the return or attachments, See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), Zip Codes and Countries, to decide the Zip Code. Note: Edit the 3 digits followed by "01" of the first zip code listed for the applicable state, e.g., "99501" for Alaska. Only the first three digits of the Zip Code is decided, Edit "01" for the fourth and fifth digits. The "Change In fiduciary's address" box is checked, An "in-care-of" Name is present. Edit the "%" (percent sign) or "c/o" to the left of the "in-care of" name (in the first position) followed by the correct name. It is necessary to edit the street address, See Document 7475, for current Address/Street Abbreviations. Note: Always circle 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. Figure 3.11.14-26 Address ChangeFigure 3.11.14-26 shows how to edit the address when a new street address is attached to the return. Pictured is the top half of a current year Form 1041, page 1 with the street address and zip code circled out in red. The new street address and zip code edited to the right in red was shown on an attachment to the return that reads: To Whom it May Concern: Please note the following address change: 2705 Falcon St. Newark, NJ 07102. The Simple trust box is checked in Section A (Type of Entity) and Fiduciary Code 2 is edited to the right of the Simple Trust box. Please click here for the text description of the image. Figure 3.11.14-27 P O Box and Street Address on returnFigure 3.11.14-27 shows an example of a return with both a P O Box and a street address. Pictured is the top part of a current Form 1041 (page 1) with the entity section completed showing the name of the trust, name and title of fiduciary and both a P O Box and a Street Address. TC 014 is edited vertically in the top left-hand corner. Also, the Complex Trust box is checked in Section A (Type of Entity) and Fiduciary Code 3 is edited to the right of the Simple Trust box. Please click here for the text description of the image. The USPS established new address requirements for APO/DPO/FPO addresses. If the old address appears, convert to the new state code abbreviation based on the Zip Code, e.g., APO New York, NY 091XX would be converted to APO AE 091XX. See Figure 3.11.14-28, Editing Return with an APO Address. APO/DPO/FPO addresses are considered domestic addresses. Refer to APO/DPO/FPO Conversion Chart below: ZIP Code State Code 340 AA 090 - 098 AE 962 - 966 AP Figure 3.11.14-28 Editing Return with an APO addressFigure 3.11.14-28 shows an example of a return with an APO address. Pictured is the top part of a current Form 1041 (page 1) with the entity section completed showing the name of the trust, name and title of fiduciary and APO address (APO New York, NY 09132). The APO address was circled, and APO AE 09132 was edited above. Please click here for the text description of the image.

# ♦Entity Perfection - Foreign Address♦

3.11.14.14.6 (05-13-2022) ♦Entity Perfection - Foreign Address♦ A foreign (international) address is any address that is not in the 50 states or the District of Columbia. Returns with APO/DPO/FPO addresses are considered domestic addresses. See IRM 3.11.14.14.5, Entity Perfection - Domestic Addresses. Route returns with a foreign address to Ogden Submission Processing Campus (OSPC) for processing. Prepare Letter 86C, Referring Taxpayer Inquiring/Forms to Another office, to inform the taxpayer that the return was sent to Ogden. Exception: All 1040-NR Fiduciary returns filed using an EIN instead of an SSN are processed in Kansas City as Non-Master File (NMF). Fiduciary Form 1041, that has a Form 1040-NR attached for an individual (SSN) will be forwarded to Ogden for processing. Returns with addresses in the following U.S. Possessions/Territories are considered foreign for processing purposes but are edited in the same way as domestic addresses. A two-character alpha code must be edited for the Possession/Territory name: U.S. Possession/Territory Abbreviation American Samoa AS Federated States of Micronesia FM Guam GU Marshall Islands MH Northern Mariana Islands MP Palau PW Puerto Rico PR Virgin Islands (U.S.) VI A ZIP code must be present for U.S. Possessions/Territories. Edit the correct ZIP code if one is not given. See Exhibit 3.11.14-7, U.S. Possessions ZIP Codes. All other foreign addresses are edited the same as a domestic address with the following exceptions: Ensure the foreign country is the last entry in the address. Circle 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 Address Abbreviations, Major City codes (MCCs), ZIP Codes and Countries, for official foreign Country Codes. Edit a unique country code will be edited for returns filed with an address in Canada. See IRM 3.11.14.14.6.1, Country Code - Canada. Note: Code & Editing BMF Foreign Address Job Aid (Number 2324–002) gives examples for editing foreign addresses. Check if the address contains a province, state or territory from Australia, Brazil, Canada, Cuba, Italy, Mexico, or The Netherlands, check if the address has a province, state or territory. See Exhibit 3.11.14-8, Province, State and Territory Abbreviations. Note: There can 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. If Then A province, state or territory is present, Circle the province, state, or territory name. Edit the correct abbreviation. See Exhibit 3.11.14-8, Province, State and Territory Abbreviations. Province, state, or territory is shown in abbreviated format, Continue editing the return. A province, state, or territory is not present, Continue editing the return. A ZIP code or state is not required on a foreign address. Foreign addresses use a postal code that is entered prior to the city or foreign country and is part of the address.

# ♦Country Code - Canada♦

3.11.14.14.6.1 (01-01-2022) ♦Country Code - Canada♦ To assist Compliance with workload assignment, returns filed with an address in Canada will be edited using a unique country code based on the province/territory. If Then The foreign address has a Canadian Province/Territory name or abbreviation shown in the table below, Circle the country name. Edit the correct Country Code based on the province/territory preceded by a "/" and followed by a "/$" as the last entry in the address. The foreign address doesn't have a Canadian Province/Territory name or abbreviation shown in the table below, Circle the country name. Edit the Country Code "/CA/$" as the last entry in the address. Canadian Province Province Abbreviation Postal Code beginning Country Code Alberta AB T XA British Columbia BC V XB Manitoba MB R XM New Brunswick NB E XN Newfoundland and Labrador NL A XL Northwest Territories NT X XT Nova Scotia NS B XS Nunavut NU X XV Ontario ON K, L, M, N, or P XO Prince Edward Island PE C XP Quebec QC G, H, or I XQ Saskatchewan SK S XW Yukon YT Y XY The rest of the foreign address is edited using procedures in IRM 3.11.14.14.6, Entity Perfection - Foreign Address.

# Number of Qualified Funeral Trusts (QFT) - Line 4 (Form 1041-QFT)

3.11.14.14.7 (01-01-2022) Number of Qualified Funeral Trusts (QFT) - Line 4 (Form 1041-QFT) Taxpayers are instructed to enter the Number of QFTs, added on Line 4 (Part I) of Form 1041-QFT. If Then An entry is present on Line 4, Continue editing the return. Line 4 is blank or zero, Edit a "1" to Line 4 of Form 1041-QFT.

# Box E - Nonexempt Charitable and Split-Interest Trusts

3.11.14.15 (01-01-2022) Box E - Nonexempt Charitable and Split-Interest Trusts Nonexempt charitable and split-interest trusts are found in the upper-right corner Box E, Form 1041. Edit Audit Code "6" in the left margin next to Line 10 in "1 - 6" format, if either box is checked: If Then The Described in section 4947(a)(1) box is checked, Edit Audit Code "6" . The Described in section 4947(a)(2) box is checked, Edit Audit Code "6" and Fiduciary Code "9" .

# Box F - Return Indicator Check Box

3.11.14.16 (01-01-2023) Box F - Return Indicator Check Box Return Indicator Check Box is found: Box F, Form 1041. Part 1 box 5, Form 1041-QFT. Part 2 box 6, Form 1041-N. The taxpayer will check boxes to show any of the following: If Then Initial Return, See IRM 3.11.14.12.3, Initial Short Period Returns. Final Return, See IRM 3.11.14.12.2, "Final" Returns. Amended Return. See IRM 3.11.14.10.1, Amended Returns. Change in Fiduciary (Form 1041), See IRM 3.11.14.14.3, Entity Perfection - Name Control. Change in Fiduciary's Name (Form 1041 and Form 1041-N), See IRM 3.11.14.14.3, Entity Perfection - Name Control. Change in Fiduciary or Fiduciary's Name (Form 1041-QFT), See IRM 3.11.14.14.3, Entity Perfection - Name Control. Change in Fiduciary's Address, See IRM 3.11.14.14.3, Entity Perfection - Name Control. Change in Trust's Name (Form 1041), See IRM 3.11.14.14.3, Entity Perfection - Name Control.

# Editing of Income, Deductions, and Tax and Payments (Form 1041, Form 1041-QFT, and Form 1041-N)

3.11.14.17 (01-01-2024) Editing of Income, Deductions, and Tax and Payments (Form 1041, Form 1041-QFT, and Form 1041-N) The editing procedures specific for Form 1041, 1041-QFT and Form 1041-N start as follows: See IRM 3.11.14.17.1, Lines 1 through 9 - Income Section (Form 1041). See IRM 3.11.14.46, Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trust. See IRM 3.11.14.47, Form 1041-N, Income Tax Return for Electing Alaska native Settlement Trust (ANST). See IRM 3.11.14.48, Prior Year Returns - Form 1041.

# Lines 1 - 9 - Income Section (Form 1041)

3.11.14.17.1 (01-01-2022) Lines 1 - 9 - Income Section (Form 1041) This subsection has instructions for editing Lines 1 through 9 of Form 1041. Edit Lines 1 through 9 in dollars only. Do not bracket any entry, unless editing or computing a negative amount. Perfect all illegible or misplaced entries, when possible. Delete misplaced entries and edit to the correct lines. If a Nontaxable Grantor Trust, do not edit amounts from schedules or attachments to Lines 1 through 9, Form 1041. "X" Schedules I and/or D if transcription entries are present.

# Line 1 - Interest Income

3.11.14.17.1.1 (01-01-2016) Line 1 - Interest Income Accept taxpayer's entry.

# Line 2a - Total Ordinary Dividends

3.11.14.17.1.2 (01-01-2016) Line 2a - Total Ordinary Dividends Accept taxpayer's entry.

# Line 2b(2) - Qualified Dividends

3.11.14.17.1.3 (01-01-2022) Line 2b(2) - Qualified Dividends Qualified Dividends Allocable to Estate or Trust are reported on Line 2b (2) of Form 1041. If present, Line 2b (2) must be a positive amount. Never bracket a Line 2b (2) amount as a loss. Note: Though transcribed, Line 2b (2) is not used in the computation of Total Income (Line 9). Instead, Line 2b (2) is combined with Line 2b (1), Qualified Dividends Allocable to Beneficiaries, to equal the amount reported on Line 2a. If Line 2b(2) is blank or illegible and the Qualified Dividends Allocable to Estate or Trust are reported on attachments to the return, decide the correct amount and perfect Line 2b (2). If the correct amount cannot be decided, do not perfect Line 2b (2) or correspond for Qualified Dividend information. If an amount is present on Line 23 of Schedule D and Line 2b (2), page 1, of 1041 is blank, edit the amount from Line 23 to Line 2b(2) of 1041. Exception: If the ESBT box is checked on Form 1041, don't edit the amount to Line 2b(2) of Form 1041.

# Line 3 - Business Income (or Loss)

3.11.14.17.1.4 (01-01-2023) Line 3 - Business Income (or Loss) A Schedule C/C-EZ (Form 1040) or equivalent (computer printouts, written attachments, etc.) must be attached to Form 1041 if an amount ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 3 of Form 1041. See Figure 3.11.14-29, Line 3 - Business Income or Loss (Sch C or C EZ (Form 1040)) Edit Line 3 as follows: If And Then Line 3 has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Schedule C/C-EZ (Form 1040) or equivalent is blank or missing, Correspond for the missing schedule. If Line 3 is blank or illegible, Schedule C/C-EZ (Form 1040) or equivalent is present, Edit amount from Line *31, Schedule C to Line 3 of Form 1041. Bracket Line 3 if a loss. *(Line 3, Schedule C-EZ) Note: Line 31 of Schedule C reflects the Business Income (or Loss) and Line 3 of Schedule C–EZ reflects Business Income only. Figure 3.11.14-29 Line 3 Business Income or Loss Amount Check for Schedule CFigure 3.11.14-29 shows an example of editing Line 3 as described above. Pictured is the top half of a completed current year Form 1041 and a folded Schedule C. The Form 1041 shows the amount of 1200 dollars on line 3 (business income or loss) with an arrow pointing to the dollar amount. The folded Schedule C shows the name and EIN of proprietor; and lines 29, 30 and 31 totaling 1200 dollars. An arrow is pointing to the 1200 dollars which supports the amount on Form 1041. After Schedule C is a text box that reads The taxpayer can attach Schedule C. Please click here for the text description of the image.

# Line 4 - Capital Gain or Loss/Schedule D

3.11.14.17.1.5 (01-01-2025) Line 4 - Capital Gain or Loss/Schedule D The total gain or loss from the sale or exchange of capital assets is reported on Line 4 of Form 1041. Line 4 cannot have an amount more than ($3,000.) If the taxpayer enters more than ($3,000), X the entry and edit ($3,000) to Line 4. Exception: On a final return, allow losses exceeding $3,000 but only if it is entered by the taxpayer on Line 4. Tax examiners must not enter a loss greater than $3,000 on Line 4, if blank. Form 8824 must be attached if Schedule D (Form 1041) or Form 4797, Sales of Business Property, is attached to Form 1041 and the filer has notated "RELATED PARTY LIKE-KIND EXCHANGE" on Schedule D or Form 4797. Schedule D must be attached if an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 4 of Form 1041. Note: Page 1 must be attached, correspond if missing. If Schedule D is not attached and Then Line 4 of Form 1041 has an entry≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Correspond. Form 8824 is attached with an amount greater than zero on Line 22, Correspond, regardless of the entry on Line 4 of Form 1041. Reminder: Edit CCC "1" when Form 8824 is attached. Form 4952 is attached and an amount is present on Line 4g (Form 4952), See IRM 3.11.14.25, Form 4952 - Investment Interest Expense Deduction. Correspond, regardless of the entry on Line 4 of Form 1041. Don't edit Line 4 if corresponding. Only a Schedule D (Form 1041) is acceptable. If the taxpayer substitutes a Schedule D from any other tax return, i.e., Form 1040, Form 1065, Form 1120, etc., correspond. Note: Slash the incorrect Schedule D.

# Line 5 - Rents, Royalties, Partnerships, Other Estates and Trusts, etc.

3.11.14.17.1.6 (01-01-2025) Line 5 - Rents, Royalties, Partnerships, Other Estates and Trusts, etc. All income or losses from rents, royalties, partnerships, other estates and trusts, except dividends, certain interest, and capital or ordinary gains and losses and depreciation, are reported on Line 5 of Form 1041. Note: Effective TY 2007 and subsequent, farm rental is no longer reported on Form 4835, and must be reported on Schedule E, line 40. A Schedule E, Form 1040, or equivalent, e.g., computer printouts, written attachments, etc., must be attached to Form 1041 if an amount ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 5 of Form 1041. Edit Line 5 as follows: If And Then Line 5 has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Schedule E (Form 1040) or equivalent is blank or missing, Correspond for the missing schedule. If Line 5 is blank or illegible, Schedule E (Form 1040) or equivalent is present, Edit amount from Line 41, Schedule E to Line 5 of Form 1041. See Figure 3.11.14-30, Line 5 - Rents, royalties, (Sch E, Form 1040). Figure 3.11.14-30 Line 5 Amount Doesn't Match Schedule EFigure 3.11.14-30 shows how to edit Line 5 when blank and Schedule E is attached showing reportable income. Pictured is the top half of a completed current year Form 1041 and a folded part of Schedule E, Form 1040.Form 1041, Line 5 original entry was blank. 1,860 dollars is edited to line 5.Form 1041, Lines 1, 3, and 7 have entries totaling 4450 dollars on line 9, Total Income. Line 5, Rents royalties, partnerships, other estates and trusts, etc., shows an edited amount of 1860 dollars. Schedule E (Form 1040) shows 1860 dollars on line 41, Total Income or loss. An arrow in the right margin is pointing to the amount on line 41. Please click here for the text description of the image.

# Line 6 - Farm Income (Loss)

3.11.14.17.1.7 (01-01-2022) Line 6 - Farm Income (Loss) All farm income or losses are reported on Line 6 of Form 1041. A Schedule F (Form 1040) or equivalent, e.g., computer printouts, written attachments, etc., must be attached to Form 1041 if an amount ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 6 of Form 1041. Edit Line 6 as follows: If And Then Line 6 has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Schedule F (Form 1040) or equivalent is blank or missing, Correspond for the missing schedule. Line 6 is blank or illegible, Schedule F (Form 1040) or equivalent is attached, Edit amount from Line 34, Schedule F to Line 6 of Form 1041. See Figure 3.11.14-31, Line 6 - Farm Income and Loss (Sch F, Form 1040). Figure 3.11.14-31 Line 6 Amount doesn't Match Schedule FFigure 3.11.14-31 shows how to edit Line 6, Farm income or loss (Schedule F (Form 1040). Pictured is the top half of a completed current year Form 1041, calendar year return, showing an edit to Line 6 to match the amount on Schedule F, Line 34.Form 1041, Lines 1, 7, and 8 have entries totaling 2,970 dollars on line 9, Total Income. Line 6, Farm Income or Loss shows an edited amount of 3,480 dollars.Schedule F (Form 1040) shows 3,480 dollars on line 34, Net farm profit or loss. An arrow in the right margin is pointing to the amount on line 34. Please click here for the text description of the image.

# Line 7 - Ordinary Gain (or Loss) from Form 4797

3.11.14.17.1.8 (01-01-2024) Line 7 - Ordinary Gain (or Loss) from Form 4797 A Form 4797 or equivalent, e.g., computer printouts, written attachments, etc., must be attached to Form 1041 if an amount is present on Line 7 ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Edit Line 7 as follows: If Then Line 7 has an entry ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ but Form 4797, or equivalent, is not attached, Correspond. Form 4797 is attached, compare Line 7, of Form 1041 with Line 17* of Form 4797, If different, edit Form 4797 amount to Form 1041, Line 7. Form 8824, Like-Kind Exchanges, must be attached if Form 4797, Sales of Business Property or Schedule D is attached to Form 1041 and the filer has notated "RELATED PARTY LIKE-KIND EXCHANGE" on Form 4797 or Schedule D. Correspond for Form 8824 if missing. Reminder: Edit CCC "1" if Form 8824 is attached.

# Line 8 - Other Income (or Loss)

3.11.14.17.1.9 (01-01-2025) Line 8 - Other Income (or Loss) Other income or loss not shown on lines 1 through 7 is reported on Line 8 of Form 1041. If a significant entry is present on line 8 with the notation "Section 965" (or similar language), See IRM 3.11.14.10.9, Section 965 Returns Form 1041 and Form 1041-N (TY 2017 and later). Note: Do not edit Action Code "460" on Tax Period 202112 and later returns. An amount on Line 8 can be supported by an attached statement: If Then If an amount from Form 982 or Form 4972 is present on Line 8, Treat as a misplaced entry. Decrease the Line 8 amount by the amounts from Form 982 or Form 4972. Note: Form 4972 amount will be edited to Line 1b on Schedule G. Other Income items are on Lines 1 - 7, Add all the "Other Income" items and edit amount to Line 8. Bracket if negative. A statement is not attached, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The attachment shows the type of income to be the same as that reported on any of Lines 1 through 7, Decrease the Line 8 amount by that amount and increase the correct Income line (Lines 1 through 7). See Figure 3.11.14-32, Line 8 - Other Income. Line 8 is blank, or illegible and "Other Income" is reported on an attachment to Form 1041, Decide if the amount was reported elsewhere on the return. If unable to decide, edit the amount to Line 8 of Form 1041. The amount on Line 8 doesn't match the amount on the attachment and there are entries leading to the correct amount, Edit the correct amount on Line 8 of Form 1041. An amount for Form 461 is present to the left of line 8, Adjust line 8 amount by decreasing the amount by the write in Form 461 amount left of line 8. Edit the Form 461 written in amount entered to the left on line 8 for non-transcription. See IRM 3.11.14.17.1.9.1, Left Line 8 - Form 461 Business Losses Amount. Caution: The Net Operating Loss (NOL) must be reported on Line 15b. If reported on any other line, "X" the amount, edit to Line 15b as a positive amount only, and adjust the correct Total line(s). Figure 3.11.14-32 Editing Line 8 Other IncomeFigure 3.11.14-32 is an example of editing Line 8, Other Income. Pictured is the top half of a completed current year 2025 Form 1041 with an attachment overlay under Line 10, Interest. Lines 1 through 7 are blank, Line 8 and 9 show taxpayer original entry of 2,800 dollars. The attachment shows the following information:Pigeon Estate 00-6905931Lotto Winnings $950.00 (L - 8 $950.00 amount is edited to the left)Dividends $600.00 (L - 2a $600.00 is edited to the right)Part-time Business Income $200.00 (L - 3 $200.00 is edited to the right)Interest $600.00 (L - 1 $600.00 edited to the right)Income from other Trusts $450.00 (L - 5 $450.00 edited to the right)Total $2800Received date 04-15-2026.The form 1041 was edited from the attachment. The following line entries were edited to Form 1041 from the attachment: Line 1 600; Line 2a 600; Line 3 200 Line 5 450; Line 8 2800 was x out and edited with 950. Please click here for the text description of the image.

# Left Line 8 - Form 461 Business Losses Amount

3.11.14.17.1.9.1 (06-17-2020) Left Line 8 - Form 461 Business Losses Amount This amount is a write-in for Form 461 Business Losses Amount entered by the taxpayer to left of line 8. This amount is positive and dollars only. If an amount is present for any Tax Year prior and current, edit the write-in amount for non-transcription.

# Line 9 - Total Income (Loss)

3.11.14.17.1.10 (01-01-2016) Line 9 - Total Income (Loss) The total income or loss (sum of Lines 1 through 8) is reported on Line 9 of Form 1041. Edit Line 9 as follows: If Then Line 9 is blank or illegible but there are entries on Lines 1 through 8 and/or attachments, Compute and edit amount to Line 9 of Form 1041. Line 9 is the only entry in the Income Section, Edit the Line 9 amount to Line 8 of Form 1041. Note: Don't recompute Line 9 if editing amounts from attached schedules or attachments to Lines 1 - 8, unless Line 9 is blank, zero, dash, none, or N/A, then compute Line 9.

# Lines 10 - 22 - Deductions Section (Form 1041)

3.11.14.17.2 (01-01-2022) Lines 10 - 22 - Deductions Section (Form 1041) This subsection has instructions for editing Lines 10 through 22 on Form 1041. Edit Lines 10 through 22 in dollars only. Do not bracket any entry, unless editing or computing a negative amount. Perfect all illegible or misplaced entries, when possible. Delete misplaced entries and edit to the correct lines.

# Lines 10 - 15b

3.11.14.17.2.1 (01-01-2025) Lines 10 - 15b All authorized deductions on Page 1 of Form 1041 are to be reported on Lines 10 through 15b. Lines 10 through 15b consist of the following items: Line 10 - Interest Deduction. Note: For Tax Years 2022 and later, the Qualified Mortgage Insurance Premium deduction is not allowed. If the amount on line 10, Form 1041 has an amount for Qualified Mortgage Insurance Premium deduction, edit line 10 not to include the deduction amount. Line 11 - Taxes. Line 12 - Fiduciary Fees. Line 13 - Charitable Deductions. Line 14 - Attorney, Accountant and Return Preparer Fees. Line 15a - Other Deductions not Subject to the 2% Floor. Line 15b - Net Operating Loss Deduction. After perfecting Lines 10 through 14, from taxpayer entry on return, edit the balance to Line 15(a). See Figure 3.11.14-33, Allocating Deductions. Figure 3.11.14-33 Allocating Deductions from AttachmentFigure 3.11.14-33 shows an example of allocating deductions from an attachment. Pictured is a completed current year Form 1041 an attachment showing a list of deductions.Form 1041 Lines 10 through 15b do not match the total on line 16. Deductions were allocated from an attachment. Corresponding entries were edited to Line 10 (1450), Line 11 (473), Line 14 (903), Line 15a (17,599) and line 16 shows (20425) dollars. The attachment shows the following:FINCH ESTATE, Deductions (Line numbers edited to the left of money amount below)Contract Labor 8650 dollars (L-15a)Interest (arrow to the left) 1450 (L-10)Rent 7180 (L-15a)Taxes 473 (L-11)Attorney Fees 903 (L-14)Auto Fees 300 (L-15a)Business Development 410 (L-15a)Insurance 282 (L-15a)Other Expenses 777 (L-15a)Total 20,425 dollars (L-16)Received date 4-15-2026.A small graphic show 20425 plus, 1450 minus, 473 minus, 903 minus, 17599 T. The total amount 17599 was edited to Line 15a. Please click here for the text description of the image. Lines 10 through 15b will normally be positive. If a negative amount is present on any of Lines 10 through 15b, don't bracket or move the entries in Lines 10 through 15b. If a negative amount is on Line 15b and the taxpayer shows a NOL (net operating loss), ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Don't bracket or move the entry. Exception: If a negative entry is present on Lines 15a, or 15b and the taxpayer shows the negative amount is for a Tax Exempt Allocation, See IRM 3.11.14.17.2.9, Tax-Exempt Entries. The Net Operating Loss (NOL) must be reported on Line 15b. If reported on any other line, delete the amount, edit to Line 15b as a positive amount only, and adjust the correct Total line(s). See Figure 3.11.14-34, Net Operating Loss (NOL) and Line 15(b). Figure 3.11.14-34 Edit Return when Net Operating Loss (NOL) is Reported on a Line Other Than Line 15(b).Figure 3.11.14-34 is an example of editing a Net Operating Loss reported on incorrect line. Pictured is the top two thirds of a completed current year Form 1041 showing a NOL Loss of 500 dollars on line 8. Line 8 is X'd out and amount of 500 dollars is edited to Line 15b and Line 16 is increased from 500 dollars to 1,000 dollars. Line 9 is X'd out and was increased from 6,500 dollars to 7,000 dollars. The received date is 4-14-2026. Please click here for the text description of the image. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Line 16 - Total of Lines 10 through 15b

3.11.14.17.2.2 (01-01-2026) Line 16 - Total of Lines 10 through 15b Line 16 is the total of Lines 10 through 15b on Form 1041. If Line 16 is blank, add the entries on Lines 10 through 15b and edit amount to Line 16. Line 16 will normally be positive. However, taxpayers, particularly on computer-generated tax returns, can enter negative amounts on Lines 10 through 15b (which are positive), resulting in a negative amount on Line 16. If Then Line 16 is positive, "X" the negative amounts on Lines 10 through 15b. Move the deleted amounts from Lines 10 through 15b to Line 8 as a positive amount. If an amount was already present on Line 8, delete the existing Line 8 amount and recompute Line 8 adding the amounts moved from Lines 10 through 15b. Recompute the amount on Line 9 and 16. See Figure 3.11.14-35, Negative Deductions and Line 16 is Positive. Line 16 is negative, and Line 17 is less than Line 9, Note: Taxpayers (particularly on computer-generated tax returns) can enter negative amounts on Lines 10 through 15b which are positive. Do not bracket or move the entries in Lines 10 through 15b. Line 16 is negative, and Line 17 is greater than Line 9, Delete the negative amounts on Lines 10 through 15b. Move the deleted amounts from Lines 10 through 15b to Line 8 as a positive amount. If an amount was already present on Line 8, delete the existing Line 8 amount and recompute adding the amounts moved from Lines 10 through 15b. Recompute the amount on Line 9 and 16. Figure 3.11.14-35 Negative Deductions are Reported and Line 16 is PositiveFigure 3.11.14-35 shows an example of editing return when negative deductions are reported and Line 16 is positive. Pictured is the top half of a completed current year Form 1041 through line 22, Taxable Income. The following lines have dollar entries: Line 1 (600), Line 4 (250), Line 7 (100) Line 8 (100) which has an X and (150) is edited to the left, Line 9 (1050) which has an X and (1100) edited to the left. Line 12, Fiduciary Fees, has a negative 50 dollars. This amount was X out and Line 8, Other Income, was recalculated and 150 dollars was edited to the left of line 8. Line 9, Total Income, was recalculated and 1100 dollars was edited to the left of line 9. Line 16 was recalculated, and 350 dollars was edited to line 16. A text box underneath the Form 1041 reads: Xany negative entries on Lines 10 through 15b and add to line 8. Recalculate lines 9 and 16 if needed. Please click here for the text description of the image. If an entry is present on Line 16 but all Lines 10 through 15b are blank, decide if an attachment or schedule is present which clarifies the deduction. If documentation is present, edit the amount to the correct Line 10 through 15b. If documentation is not present, correspond to decide the proper deduction amount, if any.

# Line 17 - Adjusted Total Income

3.11.14.17.2.3 (01-01-2025) Line 17 - Adjusted Total Income Line 17 is derived by subtracting Line 16 from Line 9. This line is not transcribed and doesn't require perfection. However, any changes made in the Income or Deductions sections will require recomputing Line 17. This will then affect the perfection of subsequent compute lines, i.e., Lines 22 and 23. If Line 17 is blank and both Lines 22 and 23 are blank, then edit the result of Line 9 subtracted by Line 16 on Line 17.

# Line 18 - Income Distribution Deduction (Schedule K-1)

3.11.14.17.2.4 (01-01-2026) Line 18 - Income Distribution Deduction (Schedule K-1) Line 18 of Form 1041 is the Total Income Distribution Deductions reported from Line 15 of Schedule B, Page 2 of Form 1041. Line 18 must be positive only unless it is the final return of the trust or estate. If Line 18 is negative (bracketed), decide the correct amount for Line 18 as follows: Caution: Do not follow the table if you are working a final return with a negative entry on Line 18. Allow the negative amount to remain. If Then Line 18 is negative, and Line 17 is blank, Compute Line 17. Use the next two If/Then boxes in this table to decide which editing to take next. Line 18 is negative, but Line 17 is positive, X out the negative amount and rewrite as a positive amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Continue editing the return. Line 18 is negative, and Line 17 is negative or zero, Delete the Line 18 amount. Continue editing the return. Caution: Do not recompute Lines 22 and 23. A Form 1041 (usually prior year) with pre-printed brackets on Line 18, Remove the brackets ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Continue editing the return. If Line 18 is blank process as follows: Exception: If Line 18 is blank and the amount entered on Line 22 is the total of Lines 18 through 21, don't perfect Line 18. If Line 16 is greater than Line 9 and Line 18 is blank, do not edit an amount on Line 18. If Line 9 is greater than Line 16, decide the correct amount for Line 18 of Form 1041 from Line 15 of Schedule B, Page 2 of Form 1041: If Then Line 15 of Schedule B is present or is computed from the lesser of Lines 13 or 14 of Schedule B, Edit this amount to Line 18 of Form 1041. See Figure 3.11.14-36, Line 18 From Schedule B. Line 15 of Schedule B is blank and cannot be computed, and there is only 1 Schedule K-1 attached. Exception: If there are multiple Schedules K-1 attached, then correspond with taxpayer for the correct amount. Compute lines 1, 2a, 3, 4a, 5, 6, 7 and 8 of Schedule K-1. Edit the amount to Line 18 of Form 1041. See Figure 3.11.14-37, Line 18 From Schedule K–1. Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Figure 3.11.14-36 Line 18 entry is blank, and Schedule B has an entryFigure 3.11.14-36 shows how to decide the Line 18 entry when blank and supporting information is found. Pictured is a completed current year Form 1041, which is folded, showing the top part and Lines 10 through 23. Also, pictured is the top half of page 2, Schedule A and B. Schedule B shows an entry of 2,200 dollars on line 15. An arrow in the right margin of the return is pointing to the amount on line 15. The 2,200 dollars was edited to page 1, line 18 and 22. The received date is 4-17-2026. Please click here for the text description of the image. Figure 3.11.14-37 Editing Line 18 if blank from Schedule K-1 attachedFigure 3.11.14-37 shows an example of editing Line 18 and Schedule K-1 is attached with entries. Pictured is a completed current year Form 1041 (folded) and shows the top part and Lines 6 through 24. There is a text box under line 21 that reads: Line 15 of Schedule B is blank and cannot be computed. 3000 dollars was edited to blank line 18. Also pictured, is the top half of a completed Schedule K-1 placed underneath the Form 1041. There is a text box on the right of the Schedule K-1 that reads: If Line 18 of Form 1041 is blank and Line 15 of Schedule B is blank and cannot be computed, compute Lines 1, 2a, 3, 4a, 5, 6, 7 and 8 of Schedule K-1. Edit amount to Line 18 of Form 1041. Part III, Beneficiary's Share of Current Year Income, Deductions, Credits, and Other Items show the following line number and dollar amounts: Line 1 100 dollars, Line 2a 200 dollars, Line 3 700 dollars, line 4a 800 dollars, line 5 200 dollars, line 6 600 dollars, line 7 100 dollars, and line 8 300 dollars. Please click here for the text description of the image. A Schedule K-1, Form 1041 must be attached to a current year and prior two years, Form 1041 if an entry ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 18 of Form 1041 Correspond if missing. Do not correspond on the following types of returns: IRC 6020(b), Examination Prepared Substitute (SFR), Re-entry, Amended ("G" coded), ESBT, Nontaxable Grantor Trust (FID Code 4/Trust Code 3), Bankruptcy Estate, Payee is a foreign entity, Section 642(i) Trust (Maintenance of Cemetery Property or Number of Gravesites), or Funeral Trusts. Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ For Schedule K-1 editing instructions, see IRM 3.0.101, General, Schedule K-1 Processing.

# Line 19 - Estate tax deduction

3.11.14.17.2.5 (01-01-2016) Line 19 - Estate tax deduction Only positive entries are valid for Line 19. If negative, remove the brackets and continue editing the return.

# Line 20 - Qualified Business Income Deduction (TY 2019 and later)

3.11.14.17.2.6 (01-01-2022) Line 20 - Qualified Business Income Deduction (TY 2019 and later) Only a positive entry is valid for Line 20. If negative, edit the amount as positive and continue editing the return. Valid for Tax Period 201912 and later. If the Tax Period 201911 and prior edit the entry for non-transcription. If an amount is present on line 20, and no Form 8995 or 8995-A is attached the return will systemically go to ERS, do not edit the line and continue processing the return.

# Line 21 - Exemption

3.11.14.17.2.7 (01-01-2026) Line 21 - Exemption Accept taxpayer's entry for exemption as in paragraph (2) below. If an amount is claimed on Line 21, allow the amount equal to an exemption amount for one individual. See IRM 3.11.14.10.2.2, Individual Bankruptcy, paragraph (3)c for the individual exemption amount. Exemption amounts are: Type of Return Exemption Amount Fiduciary Code Trust Code Decedent's Estate $600 1 – Simple Trust $300 2 – Grantor Trust (Partially Taxable) $300 2 3 Complex Trust $100 3 – Qualified Disability Trust - IRC 642(b)(2)(C) $5,100 8 – Non-Exempt Charitable or Split Interest Trust $100 9 –

# Line 22 - Total Deductions

3.11.14.17.2.8 (01-01-2025) Line 22 - Total Deductions Line 22 of Form 1041 is the total of Lines 18 through 21. Line 22 is positive or negative. If Line 22 is blank or illegible: If entries are present on any of Lines 18 through 21, add these amounts and edit the total to Line 22. Exception: If a Line 18 entry was deleted based on the instructions, see IRM 3.11.14.17.2.4, Line 18 - Income Distribution Deduction (Schedule K-1) and do not recompute Lines 22 and 23. If Lines 18 through 21 are blank, decide if entries are present on Lines 13, 14 or 15 of Schedule B, Page 2 of Form 1041: If Then Line 15 of Schedule B is present or is computed from the lesser of Lines 13 or 14 of Schedule B, Edit this amount to Line 18 of Form 1041. Reminder: If Line 18 is blank and the amount entered on Line 22 is the total of Lines 18 through 21, do not perfect Line 18 Perfect Line 22 of Form 1041 correctly. Line 15 of Schedule B is blank and cannot be computed, Compute Lines 1, 2a, 3, 4a, 5, 6, 7 and 8 of Schedule K-1. Edit the amount to Line 18 of Form 1041. Perfect Line 22 of Form 1041 correctly. If an entry must have been placed on Line 23, Taxable Income, but was inadvertently placed on Line 22 and Line 23 is blank or zero: Delete Line 22 amount and edit that amount to Line 23.

# Tax-Exempt Entries

3.11.14.17.2.9 (01-01-2025) Tax-Exempt Entries Taxpayers cannot claim deduction against Tax Exempt Income on a Form 1041. If deductions against Tax Exempt items are notated on Form 1041 or attachments, don't add those items in any entries on Lines 10-22. See Figure 3.11.14-38, Tax Exempt Entries. Figure 3.11.14-38 Editing Tax Exempt EntriesFigure 3.11.14-38 shows an example of editing tax exempt entries. Pictured is two thirds of a completed current year Form 1041. The original entries on Lines 10 through 16 were: Line 10 (400 dollars), Line 11 (100 dollars) Line 14 (500 dollars) and line 16 (1,000 dollars). There is an attachment overlaying the bottom of the form showing Deductions listing Tax Exempt Interest (400 dollars) Taxes (100 dollars) Attorney (500 dollars) and 1000 dollars as the total. Line 10 was X out and Line 16 was adjusted and edited as 600 dollars. Please click here for the text description of the image. If the taxpayer shows all negative amounts on Line 15a, and 15b, is for a Tax Exempt Allocation, there is only one other deduction claimed within Lines 10 through 14, and Line 1 in the "Other Information" Section, Page 3 of Form 1041, is marked "Yes" or is blank and no computation is present, process as follows: Delete any negative amounts reported on Line 15a, or 15b. Reduce the remaining Deduction line amount (positive) by the negative amount the taxpayer entered on Line 15a, or 15b. Perfect Line 16, if necessary. Example: If $461.00 is entered on Line 14 (positive amount), Line 15a or 15b is a negative $120.00, and Lines 10 through 13 are blank, delete the negative $120.00 from Line 15a or 15b and reduce the Line 14 amount from $461.00 to $341.00 ($461.00 – $120.00 = $341.00). Also, perfect Line 16 (if necessary) as a positive ($341.00) amount. See Figure 3.11.14-39, Tax Exempt Allocation. Figure 3.11.14-39 Tax Exempt AllocationsFigure 3.11.14-39 shows an example of editing Tax Exempt Allocations as shown in the text. Pictured is a folded Form 1041 showing the deduction section: Line 14 original entry is 461 dollars, line 15a is negative 120 dollars. To the left of the entry shows notation Tax Exempt Income. Line 14 was reduced to 341 dollars and line 15a entry was X out. Pictured also is page 2, Other Information showing Line 1 Did the estate or trust receive tax exempt income check box is marked Yes. Lines 2 through 9 boxes are marked No. Please click here for the text description of the image. Note: Although this example shows the one positive deduction amount on Line 14, the procedure applies to a positive entry on any of the Lines 10 through 14. If an entry must have been placed on Line 23, Taxable Income, but was inadvertently placed on Line 22 and Line 23 is blank or zero: Delete the Line 22 amount and edit that amount to Line 23. If unable to decide the correct deduction amount and there are negative entries on Lines 10 through 15b: "X" the negatives entries. Add these entries to Line 8 of Form 1041. Continue normal processing.

# Lines 23 - 30 - Tax and Payments Section (Form 1041)

3.11.14.17.3 (01-01-2022) Lines 23 - 30 - Tax and Payments Section (Form 1041) This subsection has instructions for editing Lines 23 through 30 on Form 1041. Perfect all illegible or misplaced entries, when possible. Delete misplaced entries and edit to the correct lines.

# Line 23 - Taxable Income

3.11.14.17.3.1 (01-01-2025) Line 23 - Taxable Income If Line 23 is blank, subtract Line 22 from Line 17 and edit on Line 23. If Line 23 is blank and it is decided that an entry that must have been placed on Line 23 was inadvertently placed on Line 24. "X" the Line 24 amount and edit the amount to Line 23.

# Line 24 - Total Tax

3.11.14.17.3.2 (01-01-2025) Line 24 - Total Tax Line 24 of Form 1041 is derived from Line 9 of Schedule G. Note: For instructions for editing Form 1041 with an entry present on Line 9 of Schedule G, see IRM 3.11.14.22.11, Line 9, Schedule G - Total Tax. If Line 24 has a negative amount (a loss), edit Line 24 from Line 9 of Schedule G, Page 2: If Then Line 9, Schedule G, is positive, Edit the Line 9 amount to Line 24. Line 9, Schedule G, is negative, "X" the Line 24 amount. If Line 24 is blank or illegible: If Then Entries are present on Lines 3 through 8, Schedule G Adding Lines 3 through 8, Schedule G and edit the result to Line 24, Form 1041. No entries present on: Lines 3 through 8, Schedule G, and Lines 10 through 16, Schedule G, and Lines 25 through 27, Form 1041, Edit the amount from Line 28 to Line 24, Form 1041. If it is decided that an entry was inadvertently placed on Line 24, decide if the entry must be edited to Line 23: If Then The Line 24 entry must be on Line 23 and Line 23 is blank, "X" the Line 24 amount and edit the amount to Line 23. The Line 24 entry must be on Line 23, but an entry is already present on Line 23, "X" the Line 24 amount. Note: Do not edit the amount to Line 23. Continue editing the return. If unable to decide where the Line 24 entry belongs, "X" the Line 24 amount. Note: Do not edit the amount to Line 23. Continue editing the return. Note: For instructions for editing Schedule G, see IRM 3.11.14.22.1, Lines 1a - 1d, Schedule G - Tax, through IRM 3.11.14.22.11, Line 9, Schedule G - Total Tax. Taxpayers can report a special tax for Electing Small Business Trusts (ESBT) on Line 9 of Schedule G. Taxpayer must check the "ESBT" box in Section "A" , of Form 1041 or can notate on the dotted part of Line 9, Schedule G: ELECTING SMALL BUSINESS TRUST ESBT IRC Section 641(c) If one of the above notations is written on the dotted part of Lines 9, process as follows: If Then The ESBT amount was added on Line 9, Schedule G, and Line 24, Form 1041, Continue editing the return. The ESBT amount on Line 9, Schedule G, was not added on Line 24, Form 1041, Increase Line 24 (Form 1041) by the ESBT amount written in on Line 9 of Schedule G. The ESBT amount is written separate from the Line 9, Schedule G, amount, Increase Line 24, Form 1041, by the ESBT amount written in separately from the Line 9 Schedule G, amount (if the taxpayer has not already done so). Reminder: Edit the ESBT indicator "1" in the left margin next to Line 10, in "2 - 1" format when the ESBT box in Section "A" is checked or there is an indication of ESBT.

# Line 25 - Net 965 Tax Liability Paid from Form 965-A (TY2017 and later)

3.11.14.17.3.3 (01-01-2026) Line 25 - Net 965 Tax Liability Paid from Form 965-A (TY2017 and later) The amount for Line 25, Form 1041 is from Form 965-A, Individual Report of Net 965 Tax Liability, Part II, column (k). For editing procedures for Line 25, Form 1041 (Line 19 Form 1041-N 201912 - 202212, Line 17 202312 and later) see: IRM 3.11.14.10.9, Section 965 Returns Form 1041 and Form 1041-N (TY2017 and later) IRM 3.11.14.10.9.1, Tax Period 202112 through 202211 - Line 25 and Line 15, Schedule G, Form 1041 (Line 19 Form 1041-N). IRM 3.11.14.10.9.2, Tax Period 202012 through 202111 - Line 25 and Line 15, Schedule G, Form 1041 (Line 19 Form 1041-N). IRM 3.11.14.10.9.3, Tax Period 201912 through 202011 - Line 25 and Line 15, Schedule G, Form 1041 (Line 19 Form 1041-N). IRM 3.11.14.10.9.4, Tax Period 201812 through 201911 - Line 24 and Line 25f, Schedule G, Form 1041. IRM 3.11.14.10.9.5, Tax Period 201712 through 201811 - Section 965 Tax or 965 Election (Form 1041 and Form 1041-N).

# Line 26 - Total Payments

3.11.14.17.3.4 (01-01-2024) Line 26 - Total Payments If Line 26 is blank or illegible, edit the combined total from Schedule G, Lines 12 through 18b to Line 26, Form 1041. If Line 26 has an entry, but there are no entries on Schedule G Lines 12 through 18b, edit line 26 amount to Line 10, Schedule G. Do not correct the taxpayer's entry on Line 26 unless it's a misplaced entry or Line 18b credits are being brought forward.

# Line 27 - Estimated Tax Penalty

3.11.14.17.3.5 (05-11-2023) Line 27 - Estimated Tax Penalty Estimated Tax Penalty must be edited when either: Other penalty is precomputed on the return, or Form 2210 is attached to return and shows liability for estimated tax penalty. Reminder: Also, edit CCC "K" if Form 2210, box "F" is checked in Part II on a 2009 tax return. See IRM 3.11.14.8.9, CCC "K" - Qualifying Small Business Taxpayer. If Line 27 is blank, edit the amount from Line 19 of Form 2210 to Line 27, Form 1041. Reminder: See IRM 3.11.14.8.24, CCC "8" - Waiver of Estimated Tax Penalty.

# Lines 28 and 29 - Tax Due/Overpayment

3.11.14.17.3.6 (01-01-2026) Lines 28 and 29 - Tax Due/Overpayment Lines 28 and 29 are edited as positive only. If the entry is a negative amount, do not bracket. Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If an entry is present on Line 28 and no entries are present on Lines 24 through 27, edit the amount from Line 28 to Line 24. If no entry is present on Line 28, and no entries are present on Lines 24 through 27, edit the amount from Schedule G, Line 9 to Line 24 and Line 28. If Lines 28 and 29 are blank and entries are present on lines 24 through 27, do both of the following: Add Lines 24 and 27. Subtract Line 26. Edit the positive result on Line 28 or the negative result (do not bracket) on Line 29. See IRM 3.11.14.17.3.7 Lines 30a and 30b - Credit Elect/Refund, and Figure 3.11.14-40, Calculation of Overpayment. If precomputed interest or delinquency penalty is evident, ensure that it has not been added in Line 28 or reduced Line 29. If Then The amount on Line 28 has precomputed interest or penalty, "X" Line 28 amount. Delete the interest, penalty or other charge from the amount owed. Edit the correct amount owed to the left of the original entry. See Figure 3.11.14-41, Line 28 has Late Filing Penalty. The amount on Line 29 is reduced by precomputed interest or penalty, "X" Line 29 amount. Compute the Overpayment amount without the interest or penalty. Edit the correct Overpayment to the left of the original entry. Figure 3.11.14-40 Calculation of OverpaymentFigure 3.11.14-40 shows an example of calculation of overpayment edit. Pictured is a completed current year Form 1041.Line 24. Total tax shows 390 dollars.Line 26. Total Payments shows 450 dollars.Lines 27 through 30 are blank.The difference of 60 dollars was edited to line 29 Overpayment and Line 30a Credited to 2026 estimated tax. Please click here for the text description of the image. Figure 3.11.14-41 Editing Line 28 when it has amount for late filing penaltyFigure 3.11.14-41 shows an example when Line 28 Tax Due has a late filing penalty. Pictured is the Tax and Payments section of Form 1041. Line 28, Tax Due, shows 657 dollars with an asterisk to the right. An arrow is pointing to an asterisk notation below: Has Late Filing Penalty of 20 dollars. The Penalty was deleted from the total and the balance due was edited as 637 dollars to the left of the original entry. Please click here for the text description of the image.

# Lines 30a and 30b - Credit Elect/Refund

3.11.14.17.3.7 (01-01-2024) Lines 30a and 30b - Credit Elect/Refund If an entry is present on Line 29, an entry must be present on Line 30a or 30b. If And Then Lines 30a and 30b are both blank or zero, Return is not final, Edit the amount from Line 29 to Line 30a. Lines 30a and 30b are both blank or zero, Final Return, Edit the amount from Line 29 to Line 30b. Lines 30a and 30b are the same, and the total of the two do not equal Line 29, Return is not final, Delete the amount on Line 30b. Lines 30a and 30b are the same, and the total of the two do not equal Line 29, Final Return, Delete the amount on Line 30a. Line 30a has an entry, and Line 30b is blank or zero, Return is not final, Do not edit. Line 30a has an entry, and Line 30b is blank or zero, Final Return, Arrow entry from Line 30a to Line 30b, Note: An entry on Line 30b is an indication of a refund return. For refund return processing instructions, see IRM 3.11.14.10.7, Refund Returns (45 Day Jeopardy and High Dollar Refunds).

# Lines 30c, 30d, & 30e - Direct Deposit Information

3.11.14.17.4 (01-01-2026) Lines 30c, 30d, & 30e - Direct Deposit Information For Tax Year 2025 and later the Direct Deposit information is transcribed directly from Form 1041 for the following lines: Line Line Description 30c Routing Number 30d Type of Depositor Account 30e Depositor Account Number If data is present, take no action and continue to process the return.

# Penalty and Interest Code Editing

3.11.14.18 (01-01-2024) Penalty and Interest Code Editing The Penalty and Interest Code (P&I) will be edited in the left margin next to Line 10 of Form 1041 as "4 -1" format. See IRM 3.11.14.10.15.3, Penalty/Interest Code. Edit the Penalty and Interest Code as follows: If penalty and/or interest is added on Line 28 of Form 1041, delete the Line 28 amount, and edit the true Tax Due, minus the penalty and/or interest, to the left of the "X" . If Then Form 1041 is received by the Return Due Date, Do not edit a Penalty and Interest Code when the taxpayer has notated penalty and/or interest on the return. Form 1041 is received within ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, but only interest is shown, Edit Penalty and Interest Code "1" in the left-hand margin next to Line 10 in "4 - 1" format. See Figure # 3.11.14-42 #, Penalty and Interest Code. Form 1041 is received within ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, but only precomputed penalty, or precomputed penalty and interest, is given, Edit Penalty and Interest Code "1" in the left-hand margin next to Line 10 in "4 - 1" format. The Received Date is not stamped on Form 1041 and a penalty and/or interest code is shown, Edit the Received Date in the center of Form 1041. Figure 3.11.14-42 This image has been removed because it contains Official Use Only Content. Please click here for the text description of the image.

# ♦Signature♦

3.11.14.19 (01-01-2025) ♦Signature♦ A signature and jurat are 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 3.11.14.10.8.1, IRC 6020(b) - Prepared by Collection. Note: Starting July 1, 2013, the Revenue Officer's (RO) electronic or typed signature will be accepted as a valid signature on the return. Returns prepared by Examination. For example, "SFR" (Substitute for Return) or "SUBSTITUTE RETURN" . Dummy returns prepared by IRS. Returns filed under IRC 501(d) (Religious or Apostolic Organization). Correspondence containing a signature and jurat is attached showing that the taxpayer is responding to an IRS letter. See paragraph (5) below. Re-entry returns originally filed electronically ("E-File" ). These returns can have TRPRT printouts or "TRPRT Print Do Not Process" in lieu of an actual return. Note: If the TRPRT print states "TRPRT Print Do Not Process" in the top margin, circle the words "Do Not Process." Returns received with a Request for Prompt Assessment under IRC 6501 (d). Do not correspond for a signature on "CII" returns that have Form 13596, Reprocessing Returns, attached. See IRM 3.11.14.6.3.3, Correspondence Imaging Inventory (CII) Returns, for processing instructions. If a signature is missing, correspond: Exception: Do not issue correspondence on a Section 965 return. ERS will correspond for missing information. See IRM 3.11.14.10.9, Section 965 Returns (Form 1041 and 1041-N) (TY 2017 and later), for more information. Note: See IRM 3.11.14.6.3.2, Issuing Correspondence, for returns that are incomplete and appear to be duplicate filings. If Then The return is not signed on the line designated for the fiduciary or trustee signature, or The jurat is not present on the line designated for the estate or trusts signature (non-standard return), or Only the Entity information is present and there are no attachments containing tax data. Edit Action Code 225, Correspondence for Signature only, or 226, International Correspondence for signature only. Leave in batch and continue editing or follow local procedures. Exception: If the fiduciary's signature is on the preparer's line and you can verify that it is the fiduciary arrow the signature up, e.g., the fiduciary's name is in the entity section of the return. Note: Paper returns sent in by the filer that states their return was rejected through the E-file system require a signature. Form 8879-F is not an acceptable substitute for a paper return. If the jurat is altered or crossed-out, see IRM 3.11.14.6.3.6, Frivolous Arguments, for frivolous return instructions. Accept a "signature declaration" , a signature with jurat received through IRS correspondence, if attached to the return. If the "signature declaration" is altered or crossed-out, see IRM 3.11.14.6.3.6, Frivolous Arguments. If the taxpayer responds with a self-prepared "signature declaration," it must have 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." Tax examiners are not handwriting experts, 26 Code of Federal Regulations (CFR) 301.6064-1 allows the IRS to presume that the signature on a return, statement, or other document is the true signature of the person who signed the document. Note: A "?" or "X" used to designate where the taxpayer must sign the return is not considered a valid signature. Facsimile Signature - Rather than signing each return, a Fiduciary can use a Facsimile or stamp of the signature. If a facsimile is used, the person filing the return must retain a letter signed by the Fiduciary with a statement that the facsimile represents their signature; a statement that the signature was placed there by their direction; and a list of each return (Name and TIN) being covered by the letter. If the fiduciary's signature is on the preparer's line and you can verify it is the fiduciary, arrow the signature up. E.G., the fiduciary's name is in the entity section of the return. Only one correspondence attempt is required for a signature.

# Fiduciary's EIN (Trusts Only)

3.11.14.20 (01-01-2025) Fiduciary's EIN (Trusts Only) The Fiduciary's EIN box is found to the right of the Signature area and above the Tax Preparer's box on Form 1041. A Fiduciary's EIN must be present when certain criteria is met. Edit a "Check mark" to the right of the Fiduciary EIN when all the following apply: See Figure 3.11.14-43, Fiduciary's EIN. There is a positive entry on Line 23. There is an entry on Line 10, Schedule G, Estimated Tax Payments. Fiduciary Code "2" or "3" is edited. The Fiduciary's EIN is different than the Trust's EIN, Section C. The return is not an amended return. The fiduciary is a trust or financial institution, i.e., bank, credit union, savings and loan, N.A. This information will be documented in the Entity section on either the "Name of Estate or Trust" line or on the "Name and Title of Fiduciary" line and can follow in care of or %. Exception: Do not edit the EIN if the taxpayer has notated TRUST COMPANY, if other than part of a financial institution name, e.g., bank, credit union, savings and loan, N.A., etc., in the Entity area or Signature area. N.A. stands for National Association. Example: "Pike Bank & Trust Company" or "Pike Trust Company, N.A." would be indicators for editing a Fiduciary EIN while "Pike Trust Company" would not. If the return meets all the above criteria, process as follows: If Then The Fiduciary's EIN is present in the Fiduciary's EIN box, Edit a check mark to the right of the Fiduciary's EIN box. Continue editing the return. The Fiduciary's EIN is blank, illegible, or less than nine digits, but is decided from the return or attachments, Edit the Fiduciary's EIN to the right of the Fiduciary's EIN box. Continue editing the return. The Fiduciary's EIN is blank, illegible, or less than nine digits. but cannot be decided from the return or attachments, Correspond for the missing information. Figure 3.11.14-43 Fiduciary EINFigure 3.11.14-43 shows an example when a Fiduciary's EIN must be present as described above. Pictured is a completed current year Form 1041 showing arrows pointing to the following:Fiduciary code 2, to the left of the Simple Trust box.Fiduciary name Cardinal Bank.Line 23. Taxable Income (shows a positive amount of 8,000 dollars). Line 10, Schedule G. Estimated tax payments (shows 150 dollars).The Fiduciary's EIN 00-2406247The signature section shows the Signature, date and EIN of fiduciary. A text box shown in the center of the Paid Preparer's Section reads: FIDUCIARY EIN. An arrow is pointing from the text box to the written EIN, which has an edited red check mark to the right of the EIN. Please click here for the text description of the image.

# ♦Paid Preparer Section♦

3.11.14.21 (01-01-2024) ♦Paid Preparer Section♦ The Paid Preparer Section is found below the Fiduciary's Signature area near the bottom of Form 1041, Form 1041-QFT, and Form 1041-N.

# ♦Paid Preparer Check Box Indicator♦

3.11.14.21.1 (01-01-2022) ♦Paid Preparer Check Box Indicator♦ The Paid Preparer Check Box is found next to the taxpayer signature area. It shows if the taxpayer has chosen to allow the Paid Preparer to answer questions about the return as it is processed. No editing is required on amended returns. Do the following when an entry is present in the Paid Preparer Check Box: If Then Only the "Yes" box is checked, Do not edit. The "No" box is checked; or both boxes are not checked; or both boxes are checked, Circle the Paid Preparer's Telephone Number, if present. See Figure 3.11.14-44, Paid-Preparer Check Box Indicator. Figure 3.11.14-44 Paid Preparer Check Box IndicatorFigure 3.11.14-44 shows an example when the paid preparer box is checked. Pictured is the bottom quarter of Form 1041, page 1. The fiduciary marked No in the paid preparer check box. The paid preparer check box has the following statement: May the IRS discuss this return with the preparer shown below (see instructions). The telephone number is circled as shown in the instructions above. Please click here for the text description of the image.

# ♦Paid Preparer Tax Identification Number (PTIN)♦

3.11.14.21.2 (01-01-2025) ♦Paid Preparer Tax Identification Number (PTIN)♦ The Preparer's Social Security Number (SSN) (2009 and prior revisions) or Preparer's Tax Identification Number (PTIN) is found to the right of the Preparer's Signature in the PTIN box (Preparer's SSN or PTIN box for 2009 and prior revisions) at the bottom-right corner of Form 1041, Form 1041-QFT and Form 1041-N. No editing is required on amended returns. A valid Preparer's Social Security Number (SSN) is a nine-digit number. Circle the SSN if less than nine-digits digits, all zeroes, all nines, or illegible. A valid PTIN begins with the alpha "P" followed by an eight-digit number (e.g., PXXXXXXXX). Circle the PTIN if it is invalid, all zeros or all nines.

# ♦Paid Preparer Employer Identification Number (EIN)♦

3.11.14.21.3 (01-01-2025) ♦Paid Preparer Employer Identification Number (EIN)♦ The Firm's EIN is found below the Preparer's PTIN box at the bottom-right corner of Form 1041, Form 1041-QFT and Form 1041-N (Page 1). No editing is required on amended returns. The Firm's EIN (Paid Preparer's EIN - 2009 and prior revision) is a nine-digit number. Circle the EIN if less than nine digits, all zeroes, all nines, or illegible.

# ♦Paid Preparer Phone Number♦

3.11.14.21.4 (01-01-2022) ♦Paid Preparer Phone Number♦ The Paid Preparer's Phone Number is found below the Paid Preparer's EIN at the bottom right corner of Form 1041, 1041-QFT and 1041-N. If Then The return is amended, Do not edit. The Preparer's Phone Number is more than 10 digits, Do not edit. The Preparer's Phone Number is illegible or less than 10 digits, Circle the Phone Number. See Figure 3.11.14-45, Editing Paid Preparer Phone Number. Figure 3.11.14-45 Editing Paid Preparer Phone NumberFigure 3.11.14-45 shows an example of edit of the paid preparer phone number when the preparer's phone number is illegible, or less than 10 digits as described above. Pictured is the bottom quarter of Form 1041, page 1. The graphic illustrates the filer checked the YES box for the paid preparer check box containing the statement May the IRS discuss this return with the preparer shown below (see instructions). The telephone number is circled because it doesn't have 10 digits.Underneath the graphic is text that reads If the paid preparer's phone number is illegible or less than 10 digits, circle the incomplete or illegible telephone number. Please click here for the text description of the image.

# E-File Waiver Indicator (Form 8948)

3.11.14.21.5 (01-01-2024) E-File Waiver Indicator (Form 8948) IRC 6011(e)(3) requires preparers of more than ten Form 1041 returns to file electronically. Form 8948, Preparer Explanation for Not Filing Electronically, gives certain exclusions from that requirement. All 1041 returns with a completed Form 8948 attached will be edited with the E-File waiver indicator. The valid indicators are 1, 2, 3, 4, 5 and 6. Only one indicator is edited. If Form 8948 is attached, edit the E-File Waiver Indicator at the bottom center margin of page 1, Form 1041 by following the instructions in the table below: If the box marked on Form 8948 is Then Edit E-File Waiver Indicator Box 1 "1" Box 2 "2" Box 3 "3" Box 4 "4" Box 5 "5" Box 6 a, b or c "6" Caution: If editing E-File Waiver Indicator Code "6," DO NOT edit any following alpha characters, such as "a" , "b" , or "c" . Do not edit E-File Waiver Indicator Code on amended returns. If multiple boxes are checked, edit only one E-File Waiver Indicator, according to the following priority order: Priority Order E-File Waiver Indicator Box 6a "6" Box 6b "6" Box 3 "3" Box 2 "2" Box 1 "1" Box 4 "4" Box 5 "5" Box 6c "6" If no box is checked on Form 8948, but a notation is written near a box, go with filer intent. If completely blank, do not edit E-File Waiver Indicator.

# Schedule G - Tax Computation and Payments Lines 1 - 18 (Form 1041)

3.11.14.22 (01-01-2025) Schedule G - Tax Computation and Payments Lines 1 - 18 (Form 1041) Schedule G, Form 1041, is found in the middle of Page 2 and the top of Page 3 of Form 1041.

# Lines 1a - 1e, Schedule G - Tax

3.11.14.22.1 (01-01-2025) Lines 1a - 1e, Schedule G - Tax This subsection has the tax procedures for lines 1a - 1e.

# Line 1a, Schedule G - Tax on Taxable Income (Tax Rate or Schedule D)

3.11.14.22.1.1 (01-01-2025) Line 1a, Schedule G - Tax on Taxable Income (Tax Rate or Schedule D) The taxpayer must enter the Tax from the Tax Rate Schedule or Line 45 of Schedule D, Form 1041, to Line 1a, Schedule G. The taxpayer must enter the lesser of the Tax from the Form 1041 Tax Rate Schedule or the amount from Line 45 in Part V of Schedule D, Form 1041 to Line 1a of Schedule G. Edit Line 1a as follows: If Line 1a is blank Then Part V, Schedule D is attached with a positive entry on Line 45, Edit the amount from Line 45, Schedule D to Line 1a, Schedule G. There is no entry or a negative entry on Line 45, Schedule D, Continue editing. Schedule D is not attached, Continue editing. Form 8824 must be attached if Schedule D. Form 1041, or Form 4797, Sales of Business Property is attached to Form 1041 and the filer has notated "RELATED PARTY LIKE-KIND EXCHANGE" on Schedule D or Form 4797. If And Then Form 8824 is attached with an amount greater than zero on Line 22, Schedule D is not attached. Edit CCC "1" . Correspond. Form 8824 is not attached, "RELATED PARTY LIKE-KIND EXCHANGE" is notated on Schedule D or Form 4797. Correspond for the missing Form 8824. For Schedule D editing instructions, see IRM 3.11.14.17.1.5, Line 4 - Capital Gain or Loss/Schedule D. For prior year editing instructions, see IRM 3.11.14.48, Prior Year Returns - Form 1041, and IRM 3.11.14.48.2.3, Prior Year Returns - Schedule D (Form 1041).

# Line 1b, Schedule G - Tax on Lump-sum Distributions (Form 4972)

3.11.14.22.1.2 (01-01-2022) Line 1b, Schedule G - Tax on Lump-sum Distributions (Form 4972) Form 4972 must be attached to Form 1041 if an entry ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 1b, Schedule G. Edit Line 1b of Schedule G as follows: If Then Line 1b has an entry ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 4972 is not attached, Correspond for the missing form. Line 1b of Schedule G and Line 30 of Form 4972 are not equal, Edit the lesser amount to Line 1b of Schedule G.

# Line 1c, Schedule G - Alternative Minimum Tax (Schedule I)

3.11.14.22.1.3 (01-01-2022) Line 1c, Schedule G - Alternative Minimum Tax (Schedule I) Only one Schedule I is processed. If more than one is attached, decide the correct Schedule I and "X" those schedules not used. Schedule I (Form 1041) must be attached to Form 1041 if an entry ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Schedule G, Line 1c. See IRM 3.11.14.24, Schedule I (Form 1041) - Alternative Minimum Tax. If Then Line 1c has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Schedule I is not attached, Correspond for the missing schedule. Line 1c entry and Schedule I, Line 54 entry do not equal, Edit the lesser amount to Schedule G, Line 1c. Line 1c is blank and Schedule I, Line 54 has an entry, Edit the amount from Line 54 Schedule I to Line 1c, Schedule G.

# Line 1d, Schedule G - Amount from Form 4255, Part I, Line 3, Column (q)

3.11.14.22.1.4 (01-01-2025) Line 1d, Schedule G - Amount from Form 4255, Part I, Line 3, Column (q) Line 1d is valid for Tax Year 2024 and later. If Line 1d is blank, edit the amount from Form 4255, Part 1, Line 3, Column (q). If return is a Tax Year 2023 and prior and a 2024 Form 1041 revision is used, edit an "X" to left of Line 1d if an amount is present. If an amount on Line 1d is≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 4255 is not attached, correspond for the missing form.

# Line 1e, Schedule G -Total Schedule G Tax

3.11.14.22.1.5 (08-15-2025) Line 1e, Schedule G -Total Schedule G Tax If Line 1e is blank and an entry is present on any of Lines 1a through 1d, edit the total of these four lines to Line 1e. For Tax Year 2023, if an amount is present on Line 1d, then edit the Line 1d number to Line 1e. Note: For Tax Year 2022 and prior, if an amount is present on Line 1d, then no editing is necessary.

# Lines 2a - 2e, Schedule G - Credits

3.11.14.22.2 (01-01-2022) Lines 2a - 2e, Schedule G - Credits This subsection has instructions for editing Lines 2a through 2e of Schedule G Form 1041.

# Line 2a, Schedule G - Foreign Tax Credit (Form 1116)

3.11.14.22.2.1 (01-01-2022) Line 2a, Schedule G - Foreign Tax Credit (Form 1116) Form 1116 must be attached to Form 1041 if an entry ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 2a, Schedule G. If Then Line 2a has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡but Form 1116 is not attached, Correspond. Line 2a has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Edit Audit Code "1" .

# Line 2b, Schedule G - General Business Credits (Form 3800)

3.11.14.22.2.2 (01-01-2024) Line 2b, Schedule G - General Business Credits (Form 3800) Line 2b of Schedule G is used by taxpayers to claim General Business Credits (GBC). If Form 3800, General Business Credit, is required but missing, correspond. Form 3800 is required when a 2008 and subsequent tax return has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Schedule G, Line 2b. When a business credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is not supported by the applicable form, correspondence will be required. If supporting documentation is missing for credits ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond. If supporting documentation is missing for an unidentified amount on Schedule G, Line 2b, correspond. Review Schedule G, Line 2b for the following conditions: If And Then Line 2b, Schedule G is blank, Form 3800 has an entry on Line 38, Edit the Line 38 amount to Line 2b of Schedule G. Line 2b, Schedule G has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 3800 is not attached, Correspond Line 2b, Schedule G and Line 38 of Form 3800 do not match, The difference is not supported by another credit, Edit the lessor amount to Schedule G, Line 2b.

# Line 2c, Schedule G - Credit for Prior Year Minimum Tax (Form 8801)

3.11.14.22.2.3 (01-01-2022) Line 2c, Schedule G - Credit for Prior Year Minimum Tax (Form 8801) Form 8801, Credit for Prior Year Minimum Tax, must be attached if an entry ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 2c* of Schedule G, Form 1041. *(Line 2d for 2009 and prior) Note: Form 8801, Credit for Prior Year Minimum Tax, cannot be claimed on Form 3800. If Then Form 8801 is attached, Compare the amount claimed on Form 1041, Schedule G, Line 2c* to Line 25* of Form 8801. *(Line 27 for 2009, Line 28 for 2008, Line 25 for 2007 and prior). If the amounts on Form 1041 and Form 8801 are not equal and if the difference is not supported by another credit, edit the lesser amount to Line 2c of Schedule G. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡Form 8801 is not attached, Correspond. X any prior year Schedule I that supports Form 8801.

# Line 2d, Schedule G - Bond Credits

3.11.14.22.2.4 (01-01-2020) Line 2d, Schedule G - Bond Credits Form 8912, Credit to Holders of Tax Credit Bonds, must be attached if an entry ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 2d* of Schedule G: *(Line 3 for tax year 2009 and prior as a write-in entry). If Then ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡Form 8912 is not attached, Correspond.

# Line 2e, Schedule G - Total Credits

3.11.14.22.2.5 (01-01-2022) Line 2e, Schedule G - Total Credits Line 2e of Schedule G is computed by adding Lines 2a through 2d. For TY 2009 and prior year returns, new Line 2e (old Line 3) was used to claim bond credits. The following notations can be written on the dotted part of line 3 along with the credit amount. The bond credit was added to the total of Lines 2a and 2d. Tax Year Notation 2009 - 2008 "Form 8912" , Credit to Holders of Tax Credit Bonds 2007 - 2006 QZAB (Qualified Zone Academy Bond Credit) from Form 8860 CREB (Credit for Clean Renewable Energy), from Form 8912 GTCB (Gulf Tax Credit Bonds) from Form 8912 Note: Form 8912 or Form 8860 must be attached if the credit claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Correspond if missing.

# Unclaimed Credits

3.11.14.22.2.6 (01-01-2025) Unclaimed Credits Taxpayers sometimes file a credit form, e.g., Form 1116, Form 2439, attached to their Form 1041 but do not claim the credit on Form 1041 itself. Check Line 13 of Schedule K-1 to see if the credit was used as a distribution to the beneficiaries. Caution: It is not necessary to verify that all the credit was distributed on Schedule K-1. If Then A distribution is shown on Schedule K-1, Do not edit the amount to Form 1041. A distribution is not shown on Schedule K-1, Follow the specific instructions for processing the credit form received.

# Line 3, Schedule G - Net Tax (Subtract Line 2e from Line 1e)

3.11.14.22.3 (01-01-2025) Line 3, Schedule G - Net Tax (Subtract Line 2e from Line 1e) Accept taxpayer's entry. This line is calculated by the computer.

# Line 4, Schedule G - Tax on ESBT

3.11.14.22.4 (01-01-2020) Line 4, Schedule G - Tax on ESBT This amount is from ESBT Tax Worksheet Line 17. Accept taxpayer's entry.

# Line 5, Schedule G - Net Investment Income Tax

3.11.14.22.5 (01-01-2024) Line 5, Schedule G - Net Investment Income Tax Form 8960, Net Investment Income Tax, is required to be attached to the Form 1041 return when any amount is on Line 5, Schedule G. If missing, correspond. Note: X out any amount on 201311 and prior year revisions. If Line 5, Schedule G is blank and Form 8960 is attached with significant entries, enter the amount from Line 21, Form 8960 to Line 5, Schedule G. See IRM 3.11.14.42, Form 8960, Net Investment Income Tax. If there is a negative amount on Line 5, make it a positive amount.

# Line 6a, Schedule G - Amount From Form 4255, Part I, Line 3, Column (r)

3.11.14.22.6 (01-01-2025) Line 6a, Schedule G - Amount From Form 4255, Part I, Line 3, Column (r) If Line 6a, Schedule G, has an amount or Form 4255 is attached, edit as follows: If Then Line 6a of Schedule G and Form 4255, Part I, Line 3, Column (r) entries are not equal, Edit the lesser amount to Line 6, Schedule G. The amount claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 4255 is not attached, Correspond. Form 4255 is attached and the tax is not added to Line 6a, Schedule G, Edit the amount from Form 4255, Part I, Column (r) to Line 6a, Schedule G. Exception: Don't edit the Form 4255 amount to Line 6a, Schedule G if the amount on Form 4255 is also entered on Schedule K–1, Line 13 (Code "T" ) as a distribution to the beneficiary.

# Line 6b, Schedule G - Recapture Tax From Form 8611

3.11.14.22.7 (01-01-2024) Line 6b, Schedule G - Recapture Tax From Form 8611 If Line 6b, Schedule G, has an amount or Form 8611, Recapture of Low-Income Housing Credit, is attached: If Then Line 6b, Schedule G and Line 8 of Form 8611 entries are not equal, Edit the lesser amount to Line 6b, Schedule G. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡Form 8611 is not attached, Correspond. Form 8611 is attached and the tax is not added to Line 6b, Schedule G, Edit the amount from Form 8611 Line 8 to Line 6b, Schedule G. Exception: Don't edit the Form 8611 amount to Line 6b, Schedule G if the amount on Form 8611 is also entered on Schedule K–1, Line 13 (Code "T" ) as a distribution to the beneficiary.

# Line 6c, Schedule G - Other Recapture Taxes

3.11.14.22.8 (01-01-2024) Line 6c, Schedule G - Other Recapture Taxes Line 6c, Schedule G is used to report Recapture Taxes for the following write-in notations: Recapture of Qualified Electric Vehicle Credit "QEVCR" Recapture of Indian Employment Credit "IECR" from Form 8845 Recapture of New Markets Credit "NMCR" Recapture of the Credit for Employer-provided Child Care Facilities "ECCFR" If Line 6c, Schedule G, has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Note: ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ notated "QEVCR" , "IECR" , "NMCR" , or "ECCFR" on the dotted line to the left of the entry space on Line 6, Schedule G. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Line 7, Schedule G – Household Employment Taxes (Schedule H, Form 1040)

3.11.14.22.9 (01-01-2025) Line 7, Schedule G – Household Employment Taxes (Schedule H, Form 1040) Schedule H, (Form 1040), Household Employment Taxes, must be attached to Form 1041 if a significant entry is present on Line 7 of Schedule G. If Schedule H is not attached, correspond. See Figure 3.11.14-46, Schedule H (Reported on Line 7 of Schedule G). Edit CCC "8" if ALL the following conditions are met: Schedule H is attached to the return with significant entries. Form 1041 doesn't have federal withholding, Line 14, Schedule G and Total tax without household employment tax is less than $1,000. (Schedule G, Line 9 minus Line 7 is less than $1,000) See IRM 3.11.14.26.1, Schedule H - General Information. Per the Social Security Domestic Employee Reform Act of 1994 (SSDERA), certain taxpayers can legally file Schedule H (Form 1040) without a corresponding Form 1040 or Form 1041. For procedures for processing loose filed Schedule H's, see IRM 3.11.14.26.36, Loose Schedule H. Figure 3.11.14-46 Edit of Line 7 (Schedule G) from Schedule HFigure 3.11.14-46 is an example showing Schedule H support for Line 7, Schedule G. Pictured is a section from Form 1041 Schedule G and a section from Schedule H (Form 1040). Form 1041, Schedule G shows a text box that reads: If there is an entry present on Line 7 of Schedule G, Schedule H must be attached. An arrow points from the text box to Line 7, Household employment taxes. Also, shown is a double-sided arrow pointing from Line 25 of Schedule H entry of 150 dollars to Line 7, Schedule G entry of 150 dollars. Please click here for the text description of the image.

# Line 8, Schedule G - Other Taxes

3.11.14.22.10 (01-01-2023) Line 8, Schedule G - Other Taxes This entry is only valid for tax period 202112 and later. If the Tax Period is 202111 and prior, then edit the entry for non-transcription. This amount is positive or negative and dollars only.

# Line 9, Schedule G - Total Tax

3.11.14.22.11 (01-01-2025) Line 9, Schedule G - Total Tax Line 9 of Schedule G is the total of Lines 3 through 8 of Schedule G. The taxpayer is instructed to carry the amount from Line 9 to Line 24 of Form 1041. Line 9 can have the following "write-in" notations and the amount of tax, on the dotted part of line: "Section 641(c)" Tax on electing small business trusts (ESBT) "Section 453(l) interest" or "Section 453A(c) interest" Interest on deferred tax attributable to installment sales of certain timeshares and residential lots and certain nondealer real property installment obligations "From Form 4970" , Tax on Accumulation Distribution of Trusts "From Form 8697" , Interest Computation Under the Look-Back Method for Completed Long-Term Contracts "From Form 8866" , Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method "Section 1260(b)" Interest on deferral of gain from certain constructive ownership transactions "From Form 5329" , Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts "Section 1291" Tax on qualifying electing fund (QEF "Section 1291 Interest" , Interest on QEF - which will be notated on Form 1041 at the bottom of the front page. If the taxpayer writes one of the above notations on the dotted part of Line 9, edit as follows: If Then The notated amount is added to Line 9, Schedule G, and Line 24, Form 1041, Continue editing the return. The notated amount was not added to Line 24, Increase Line 24, Form 1041 by the amount written in on Line 9, Schedule G. The notated amount is written separate from the Line 9 amount, Increase Line 24 Form 1041 by the amount written in separately from the Line 9 amount if the taxpayer has not already done so. "Section 965" (or similar language) is notated (TY 2017 only), See: IRM 3.11.14.10.9, Section 965 Returns Form 1041 and Form 1041-N (TY 2017 and later) IRM 3.11.14.10.9.5, Tax Period 201712 through 201811 - Section 965 Tax or 965 Election (Form 1041 and Form 1041-N). . If Section 1291 Interest is notated on Form 1041, at the bottom of the front page, increase Line 24, by the amount notated for Section 1291 interest. Effective for TY 2002, the taxpayer must check the "ESBT" box in Section A, Type of Entity of Form 1041 or can notate "ELECTING SMALL BUSINESS TRUST" , "ESBT" , or "IRC 641(c)" on the dotted part of Line 9, Schedule G and the ESBT amount added to Line 4, Schedule G. Reminder: Edit ESBT Indicator "1" in the left margin next to Line 10 on Form 1041 in "2 - 1" format. See IRM 3.11.14.10.15.1, Electing Small Business Trusts (ESBT).

# Lines 10 - 16c, Schedule G - Payments (Refundable Credits)

3.11.14.22.12 (01-01-2022) Lines 10 - 16c, Schedule G - Payments (Refundable Credits) This subsection has instructions for editing Lines 10 through 16c, Schedule G (Form 1041). If a return has a short Tax Period and any of Lines 10 through 16c have an entry, process as instructed in IRM 3.11.14.12.9, Short Period Returns - with Prepaid Credits.

# Line 10, Schedule G - Estimated Tax Payments

3.11.14.22.12.1 (01-01-2025) Line 10, Schedule G - Estimated Tax Payments Only Form 1041-ES Tax Payments are to be reported on Line 10. "X" any amounts decided to be other than ES Tax Payments and edit these amounts to the proper line. See Figure 3.11.14-47, Estimated Tax Payments. Figure 3.11.14-47 Editing Estimated Tax Payments Entry not Matching Supporting DocumentFigure 3.11.14-47 is an example of editing estimated tax payments. Pictured is the top quarter of page 3 Schedule G Form 1041 completed, and a taxpayer note. Line 10 (Sch. G), Payments, 800 dollars this amount was X out and reduced to 600 dollars, Line 12 (Sch. G), Subtract line 11 (Sch. G) from line 10 (Sch. G), 800 dollars, Line 13 (Sch. G), Tax paid with Form 7004, blank, but 200 dollars was edited from note. The taxpayer note showed the following: Amount applied from 2024 (600 dollars) an arrow is pointing to and from line 10 to this entry. Amount paid on Form 7004 (200 dollars) an arrow is pointing to and from line 13 (Sch. G) to this entry. Total ES payments to Line 10 (Sch G) (800 dollars).Editing Line 10, Sch. G as shown in the text. Please click here for the text description of the image. Estimated tax paid by an individual during the year of death must not be claimed on a Form 1041. These ES Credits must be claimed on the deceased taxpayer's Form 1040. If the Estate has an incorrect amount, which is shown as Form 1040-ES Credits, delete the Form 1040 Credit.

# Line 11, Schedule G - Estimated Tax Treated as Paid by Beneficiary (Form 1041-T)

3.11.14.22.12.2 (01-01-2025) Line 11, Schedule G - Estimated Tax Treated as Paid by Beneficiary (Form 1041-T) Line 11 of Form 1041, Schedule G will reflect the part of Line 10 that the fiduciary is electing to be treated as paid by a beneficiary. The fiduciary makes this election by filing a Form 1041-T. A Form 1041-T must be attached to Form 1041 if an entry is present on Line 11, Schedule G. Edit Line 11, Schedule G as follows: If Then Form 1041-T is attached and Line 11, Schedule G is blank, Edit CCC "X" on Form 1041. See IRM 3.11.14.8.18, CCC "X" - Refund/Settlement Freeze. If Form 1041-T, Lines 1 and 4 have entries, edit Form 1041-T, Line 1 amount to Line 11, Schedule G. Detach Form 1041-T and notate "FORM 1041-T DETACHED" on Form 1041. Edit the Received Date and Tax Period to Form 1041-T. If the "Final Return" box is checked on Form 1041, notate "Final" below the Received Date on Form 1041-T. See Figure 3.11.14-48, Form 1041-T Attached to "Final" Return. Route Form 1041-T to Accounts Management. Form 1041-T is attached and Line 11, Schedule G has an entry, Edit CCC "X" on Form 1041. Detach Form 1041-T and notate "FORM 1041-T DETACHED" on Form 1041. Edit the Received Date and Tax Period to Form 1041-T. If the "Final Return" box is checked on Form 1041, notate "Final" below the Received Date on Form 1041-T. See Figure 3.11.14-48, Form 1041-T Attached to "Final" Return. Route Form 1041-T to Accounts Management. Form 1041-T is not attached, Continue editing the return. Do not correspond. Note: If a blank Form 1041-T or one not having significant money amounts distributed to taxpayers, or no statement showing distribution, is attached to the return, "X" it out and leave attached to the return. Do not code CCC "X" on the return. Figure 3.11.14-48 Editing a final return when Form 1041-T is AttachedFigure 3.11.14-48 is an example of a Form 1041-T attached to a final return. Pictured is the top third of a completed current year Form 1041 with the top half of Form 1041-T The final return box is checked. Computer Condition Codes F and X is edited to white space below the entity section. Det. F1041-T is notated vertically in the left margin next to the Income Section. A received date 041526 is stamped on return.Form 1041-T is completed. 041526 and FINAL is edited in the white space under No 2 (in the center of the return). Tax period 2503 is edited to Form 1041-T. Please click here for the text description of the image.

# Line 12, Schedule G - Balance of Estimated Tax Payments

3.11.14.22.12.3 (01-01-2020) Line 12, Schedule G - Balance of Estimated Tax Payments This amount is the result of Line 11 subtracted from Line 10. Accept taxpayer's entry.

# Line 13, Schedule G - Tax Paid with Form 7004

3.11.14.22.12.4 (01-01-2024) Line 13, Schedule G - Tax Paid with Form 7004 If there is an illegible entry on Line 13, Schedule G, examine the attached Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, or attachment in lieu of, or obtain the amount from entries on Lines 10, 16a or 16b of Schedule G. If a legible amount is found, place an "X" to the left of the illegible entry and edit the verified amount to the left of the "X" .

# Line 14, Schedule G - Federal Income Tax Withheld

3.11.14.22.12.5 (01-10-2023) Line 14, Schedule G - Federal Income Tax Withheld Form 1042-S (or signed Competent Authority letter), 8288, 8805, W-2, Form W-2G, Form 1099R, or a supporting statement, i.e., an earnings statement with year-to-date totals, must be attached to Form 1041 if an entry ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 14, Schedule G. If the EIN on Form(s) 1042-S or 8805 is missing or other than the TIN in the caption area, and the credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, X the credit. Form 8288-A is attached and the Date of Transfer on Form 8288-A (box 1) is not within the tax period of the return, X the credit and edit only the credit(s) that are within the tax period. Note: All 8288-A credits must be verified through the FIRPTA Database. See IRM 3.21.25, Miscellaneous Tax Returns. Use AC 420 to route any returns with credits not verified to CE. They will attach Form 13698 to verify the credit amount. If an entry is present on Line 14, Schedule G ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but, supporting documentation is not attached, correspond for the missing form. Edit Line 14, Schedule G as follows: If And Then Line 14, Schedule G has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Supporting documentation is not attached, Correspond for the missing form. Line 14, Schedule G has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 1042-S (or signed Competent Authority letter), 8288, 8805, W-2, W-2G, etc., do not equal the Line 14, Schedule G entry, "X" the Line 14, Schedule G amount. Edit the correct amount from Form 1042-S (or signed Competent Authority letter), 8288, 8805, W-2 or W-2G to the left of the "X" . See Figure 3.11.14-49, Line 14, Schedule G doesn't Equal W-2, W-2G, 1099R or supporting statement. Line 14, Schedule G entry is illegible, check the attached Form 1042-S (or signed Competent Authority letter), 8288, 8805, W-2, Form W-2G, Form 1099R or a supporting statement for a legible amount, Edit an "X" to the left of the illegible entry. Edit the computed amount to the left of the "X." Line 14, Schedule G has an entry ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Amount cannot be decided, "X" the Line 14, Schedule G amount. Compute the correct amount by subtracting Line 19, Schedule G from the sum of the amounts on Lines 12, through 13, Schedule G. Edit the computed amount to the left of the "X." Figure 3.11.14-49 Editing Line 14, Schedule G (Federal Income Tax Withheld)Figure 3.11.14-49 is an example of editing Line 14, Schedule G (Federal Income Tax withheld) when it doesn't match a supporting form W-2. Pictured is the top quarter of Page 3 Form 1041 showing Schedule G Part II lines 10 - 19 and a complete Form W-2 attached. The original taxpayer entry on Form 1041, Line 14, Schedule G, Federal Income Tax withheld, was 595 dollars. This amount was X out and 575 dollars was edited to the left. A double-sided arrow is pointing from line 14, Schedule G to Form W-2, Box 2, Federal Withholding, amount of 575 dollars. Please click here for the text description of the image. . Line 14, Schedule G or Line 26, Form 1041 can also be used to accommodate unusual credits such as "Claim of Rights" for which there is no line on the return. If no supporting documentation is attached for a credit ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ for which there is no specific line, correspond for support of this unusual credit. When examining a return for a Form 1042-S (or signed Competent Authority letter), 8288, 8805, W-2, W-2G, etc. and the form is not found but a Form 7004 is found and there is no entry on Line 13, Schedule G, see if the Line 14, Schedule G amount equals the amount on Form 7004: If the entries are Then The same, Move the Line 14, Schedule G amount to Line 13, Schedule G. Not the same and the amount claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Correspond.

# Line 15, Schedule G - Net 965 Tax Liability from Form 965-A (TY2017 and later)

3.11.14.22.12.6 (01-01-2024) Line 15, Schedule G - Net 965 Tax Liability from Form 965-A (TY2017 and later) The amount for Line 15, Schedule G, is from Form 965-A, Corporate Report of Net Tax Liability Part I, column (f). For editing procedures for Line 15, Schedule G (Form 1041) see: IRM 3.11.14.10.9, Section 965 Returns Form 1041 and Form 1041-N (TY2017 and later) IRM 3.11.14.10.9.1, Tax Period 202112 through 202211 - Line 25 and Line 15, Schedule G, Form 1041 (Line 19 Form 1041-N). IRM 3.11.14.10.9.2, Tax Period 202012 through 202111 - Line 25 and Line 15, Schedule G, Form 1041 (Line 19 Form 1041-N). IRM 3.11.14.10.9.3, Tax Period 201912 through 202011 - Line 25 and Line 15, Schedule G, Form 1041 (Line 19 Form 1041-N). IRM 3.11.14.10.9.4, Tax Period 201812 through 201911 - Line 24 and Line 25f, Schedule G, Form 1041. IRM 3.11.14.10.9.5, Tax Period 201712 through 201811 - Section 965 Tax or 965 Election (Form 1041 and Form 1041-N).

# Line 16, Schedule G - Payments From Form 2439

3.11.14.22.12.7 (01-01-2026) Line 16, Schedule G - Payments From Form 2439 Form 2439, "Notice to Shareholder of Undistributed Long-Term Capital Gains" is reported on Line 16, Schedule G. Compare Line 16, Schedule G to Line 2 of Form 2439: If Then Amount claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and, Form 2439 is missing, Correspond for missing forms to support the entry on Line 16, Schedule G. Form 2439 is attached, Edit the Line 2, Form 2439 amount to Line 16, Schedule G. 2022 and Prior- Form 2439 is the only form attached, If Form 2439, line 2 and Form 1041, line 16c, Schedule G are the same, edit amount from Form 2439, line 2 to line 16a, Schedule G. See Figure 3.11.14-50, Line 16a, Schedule G doesn't Match Form 2439. If Form 2439, line 2 and line 16c, Schedule G are not the same, edit the smaller amount to Line 16a, Schedule G. Correspond for missing Form 4136 if the entry on Line 16c, Schedule G is more than the Form 2439 amount by ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Figure 3.11.14-50 Editing Line 16a, Schedule G - Form 2439Figure 3.11.14-50 is an example of editing Line 16a, Schedule G - Form 2439.Pictured is the top half of Form 1041 Page 3 Schedule G Part II Lines 10-19 with an entry edited to line 16. The Line 19, Schedule G, Total Payments shows 2,310 dollars.A Rev/ 11-2021 Form 2439 is pictured just below Line 19 of Schedule G, Part II.Form 2439 Name box has Falcon Instrument Co. PO Box 2345 Baltimore, MD 21233.Form 2439 Notice to Shareholder box has beginning date Jan, 2025 and ending date Dec, 2025.Form 2439 Identification Number box has 00-1090574.Form 2439 Shareholder's Identifying number has 00-6942318.Form 2439 Shareholders Name box has Betsy J. Duck 1909 Warbler Rd. Baltimore, MD 21233.Form 2439 1a Box has 25,000.00.Form 2439 2 box has 2,310.00 with a double-sided arrow pointing to the Line 16, Schedule G, Part II. Please click here for the text description of the image.

# Line 17, Schedule G - Payments From Form 4136

3.11.14.22.12.8 (01-01-2024) Line 17, Schedule G - Payments From Form 4136 Form 4136, Credit for Federal Tax Paid on Fuels is reported on Line 17, Schedule G. Compare Line 17, Schedule G to Line 17, Form 4136: If Then Line 17 has an entry and Form 4136 is missing, Correspond for Form 4136 to support the entry on Line 17, Schedule G. Form 4136 is attached, Edit the amount from Line 17, Form 4136 to Line 17, Schedule G. 2022 and prior - Form 4136 is the only form attached, Subtract the Form 4136 amount from Line 16c Schedule G and edit the difference to Line 16b, Schedule G. Correspond for missing Form 2439 if the Line 16c, Schedule G entry is more than the Form 4136 by ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Line 18a, Schedule G - Elective Payment Election Amount from Form 3800

3.11.14.22.12.9 (09-23-2025) Line 18a, Schedule G - Elective Payment Election Amount from Form 3800 Elective Payment Election amount is reported on Line 18a, Schedule G. ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ For Tax Period 202212 - 202311 - If the taxpayer writes IRA22DPE on Form 3800, an attachment or on any of the following lines, see IRM 3.11.14.10.16, Elective or Deemed Payment Election and Credit Transfers. Form 2022 Lines Form 1041 Schedule G, Part II, Line 16a Form 1041-N Part II, Line 20 Form 1041-QFT Part II, Line 17

# Line 18b, Schedule G - Other Credits or Payments

3.11.14.22.12.10 (01-01-2024) Line 18b, Schedule G - Other Credits or Payments Line 18b, Schedule G can have amounts for: Credit For Qualified Sick and Family Leave Wages Taken Before April 1, 2021 Credit For Qualified Sick and Family Leave Wages Taken After March 31, 2021, and before October 1, 2021 Line 18b, Schedule G amount is transferred by taxpayer from Line 8e and/or Line 8f, Schedule H. Valid for Tax Periods 202012 through 202411. Edit for non-transcription if the Tax Period is invalid. For Tax Periods 202012 through 202411 - Ensure the combine amounts for Qualified Sick and Family Leave Wages Taken Before April 1, 2021, and Credit For Qualified Sick and Family Leave Wages Taken After March 31, 2021, and before October 1, 2021 are included in the total for 18b, Schedule G - Other Credits or Payments.

# Other Information Section (Page 3)

3.11.14.23 (01-01-2025) Other Information Section (Page 3) The "Other Information" Section of Form 1041 is found on Page 3.

# Line 3 - Interest From Foreign Country

3.11.14.23.1 (01-01-2016) Line 3 - Interest From Foreign Country Filers are required to report if they had activity in a foreign country at any time during the tax year on Line 3 of the Other Information Section of Form 1041. If the "Yes" box is checked and/or a foreign country is listed on Line 3 in the Other Information Section, edit Audit Code "2" in the left margin next to Line 10 on Form 1041 in "1 - 2" format.

# Line 4 - Distribution From Foreign Country

3.11.14.23.2 (01-01-2020) Line 4 - Distribution From Foreign Country Filers are required to report if they received a distribution from, were a grantor of, or transfers to a foreign trust on Line 4 in the Other Information Section of Form 1041. If the "Yes" box is checked and Line 18, Income Distribution, or Line 23, Taxable Income, of Form 1041 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ edit Audit Code "1" .

# Line 9 - Generation Skipping Trust

3.11.14.23.3 (01-01-2016) Line 9 - Generation Skipping Trust Filers are required to report that they are a Generation Skipping Trust on Line 9 in the "Other Information" Section of Form 1041. If And Then One box is checked in Section A of Form 1041, Edit as instructed in IRM 3.11.14.13.3, Fiduciary and Trust Code Editing, regardless of the entry on Line 9 in the Other Information Section. No boxes are checked, or multiple boxes are checked in Section A, The "Yes" box is checked on Line 9 in the Other Information Section, Edit Fiduciary Code "3" and Trust Code "1" . No boxes are checked, or multiple boxes are checked in Section A, The "Yes" box is not checked on Line 9 in the Other Information Section, Form 1041 has an indication that the return is for a "GENERATION SKIPPING TRUST." See IRM 3.11.14.13.3, Fiduciary and Trust Code Editing.

# Line 13 - Digital Asset Check Box

3.11.14.23.4 (01-01-2024) Line 13 - Digital Asset Check Box No editing is required. Data will enter: "0" if no box is checked. "1" if "Yes" box checked. "2" if "No" box checked. "3" if "Both" boxes checked.

# Schedule I (Form 1041) - Alternative Minimum Tax

3.11.14.24 (01-01-2024) Schedule I (Form 1041) - Alternative Minimum Tax Alternative Minimum Tax (AMT) is reported on Schedule I, Form 1041. Only one Schedule I is processed. If more than one Schedule I is attached, find the correct Schedule I and "X" those schedules not used. Schedule I must be attached to Form 1041 if an entry ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 1c Schedule G, Form 1041. If Then Schedule G, Line 1c has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Schedule I is not attached, Correspond for the missing schedule. Schedule I, Line 54 and Schedule G. Line 1c entry doesn't equal, Edit the lesser amount to Schedule G, Line 1c. Schedule I, Line 54 has a significant entry and Schedule G, Line 1c is blank, Edit the Line 54 amount to Schedule G, Line 1c, If a current year Schedule I is attached to Form 1041, perfect Lines 22, 23, 24 and 51 as necessary. Note: "X" any prior year Schedule I that supports Form 8801, Schedule G, Line 2d on a current year Form 1041. Do not bracket any entries on Schedule I. ISRP will transcribe all fields as positive and the Form 1041 program will convert Line 22 to negative. To convert prior year Schedule I to the current revision, see editing instructions, see IRM 3.11.14.48, Prior Year Returns - Form 1041.

# Form 4952 - Investment Interest Expense Deduction

3.11.14.25 (01-01-2020) Form 4952 - Investment Interest Expense Deduction Lines 4e and 4g are transcribed from Form 4952 (Investment Interest Expense Deduction), effective 1-1-2004. The amounts transcribed from Form 4952 will be used in the computation of Capital Gains and Losses. Lines 4e and 4g must be positive on Form 4952. If the taxpayer has a negative entry on either Line 4e or 4g, "X" the negative entry. If Then Form 4952 is present and transcription lines have significant amounts in them, Place in sequence behind Schedule I. Form 4952 is present, but Schedule D is missing, Correspond, only if an amount is present on Line 4g of Form 4952. Note: Do not "X" Form 4952 when corresponding. The taxpayer has written a dollar amount on the dotted part to the left of Line 4e of Form 4952, Delete the Line 4e entry and arrow the amount from the dotted line to Line 4e. "Alternative Minimum Tax" (AMT or Alt. Min. Tax) is notated on Form 4952, "X" through the AMT Form 4952 and leave attached.

# Schedule H (Form 1040) - Household Employment Taxes

3.11.14.26 (01-01-2022) Schedule H (Form 1040) - Household Employment Taxes This subsection has instructions for processing Schedule H (Form 1040).

# Schedule H - General Information

3.11.14.26.1 (01-01-2025) Schedule H - General Information Only one Schedule H (Form 1040) is processed with Form 1041. Reminder: Examine return for possible CCC "8" conditions. See IRM 3.11.14.8.24, CCC "8" - Waiver of Estimated Tax Penalty. If Then More than one Schedule H was submitted by one taxpayer, Combine the Schedule H's. Combine all data and edit it to Section B. "X" those schedules not to be transcribed. If the taxpayer submits only Page 2 of Schedule H, correspond for the missing Page 1. Taxpayers who are not required to file an income tax return but are liable for Household Employment Taxes can submit a Schedule H by itself. Note: For instructions for processing loose filed Schedule H's, see IRM 3.11.14.26.36, Loose Schedule H.

# Line 1 (2024 and later, Line 1a (2020 - 2023) and Line 1 (2019 and Prior) - Total Social Security Wages

3.11.14.26.2 (01-01-2026) Line 1 (2024 and later, Line 1a (2020 - 2023) and Line 1 (2019 and Prior) - Total Social Security Wages "X" Line 1a, Schedule H if the entry is less than the minimum reportable amount. Refer to chart below: See Figure 3.11.14-51, Delete Lines 1a or 3 if Less than the Minimum Reportable Amount. Tax Period Minimum Reportable Amount Less than 202512 - 202611 $2,800 202412 - 202511 $2,700 202312 - 202411 $2,600 202212 - 202311 $2,400 202112 - 202211 $2,300 202012 - 202111 $2,200 201812 - 202011 $2,100 201612 - 201811 $2,000 201412 - 201611 $1,900 201212 - 201411 $1,800 200912 - 201211 $1,700 200812 - 200911 $1,600 200612 - 200811 $1,500 200312 - 200611 $1,400

# Line 1b (2020 - 2024) - Qualified Sick and Family Leave Wages Leave Taken Before April 1, 2021

3.11.14.26.3 (01-01-2025) Line 1b (2020 - 2024) - Qualified Sick and Family Leave Wages Leave Taken Before April 1, 2021 Valid for Tax Period 202012 through 202411. Edit the entry for non-transcription if the Tax Period is invalid.

# Line 2 (2024 and later), Line 2a (2020 2023) and Line 2 (2019 and Prior) - Social Security Taxes

3.11.14.26.4 (01-01-2025) Line 2 (2024 and later), Line 2a (2020 2023) and Line 2 (2019 and Prior) - Social Security Taxes Accept taxpayer's entry.

# Line 2b (2020 - 2024) - Employer Social Security Qualified Sick and Family Leave Wages Taken Before April 1, 2021

3.11.14.26.5 (01-01-2025) Line 2b (2020 - 2024) - Employer Social Security Qualified Sick and Family Leave Wages Taken Before April 1, 2021 Valid for Tax Period 202012 through 202411. Edit the entry for non-transcription if the Tax Period is invalid.

# Line 2c (2020 - 2024) - Total Social Security Tax

3.11.14.26.6 (01-01-2025) Line 2c (2020 - 2024) - Total Social Security Tax Line 2c, Schedule H is only valid for 202012 through 202411. Edit the entry for non-transcription if the Tax Period is invalid.

# Line 3 - Total Medicare Wages

3.11.14.26.7 (01-01-2026) Line 3 - Total Medicare Wages "X" Line 3 on Schedule H if the entry is less than the minimum reportable amount listed in table below: Tax Period Minimum Reportable Amount Less Than 202512 - 202611 $2,800 202412 - 202511 $2,700 202312 - 202411 $2,600 202212 - 202311 $2,400 202112 - 202211 $2,300 202012 - 202111 $2,200 201812 - 202011 $2,100 201612 - 201811 $2,000 201412 - 201611 $1,900 201212 - 201411 $1,800 200912 - 201211 $1,700 200812 - 200911 $1,600 200612 - 200811 $1,500 200312 - 200611 $1,400 Figure 3.11.14-51 Edit Schedule H Lines 1a or 3 when less than the minimum reportable amountFigure 3.11.14-51 is an example of editing Schedule H as described above. Pictured is the top half of a competed Schedule H showing deleting Lines 1 and 3 if less than the minimum reportable amount. Part 1, Social Security, Medicare, and Income Taxes, Line 1, Total cash wages subject to social security taxes, shows the taxpayer's entry of 925 dollars with a red X edited to the left of the dollar entry. Line 3, Total cash wages subject to Medicare taxes shows the taxpayer's entry of 925 dollars with a red X edited to the left of the dollar entry. Please click here for the text description of the image.

# Line 4 - Medicare Taxes

3.11.14.26.8 (01-01-2016) Line 4 - Medicare Taxes Accept taxpayer's entry.

# Line 5 - Total cash wages subject to Additional Medicare Tax Withholding

3.11.14.26.9 (01-01-2016) Line 5 - Total cash wages subject to Additional Medicare Tax Withholding Accept taxpayer's entry.

# Line 6 - Additional Medicare Tax Withholding

3.11.14.26.10 (01-01-2016) Line 6 - Additional Medicare Tax Withholding Accept taxpayer's entry.

# Line 7- Federal Income Tax Withheld

3.11.14.26.11 (01-01-2016) Line 7- Federal Income Tax Withheld Accept taxpayer's entry.

# Line 8 - Total Social Security, Medicare, and Federal Income Taxes

3.11.14.26.12 (01-01-2025) Line 8 - Total Social Security, Medicare, and Federal Income Taxes Line 8 amount is Line 8a for Tax Period 202012 - 202411. Compute Line 8a when it is blank by adding Lines 2c, 4, 6 and 7.

# Line 8b (202012 - 202411) - Nonrefundable Credit Qualified Sick and Family Leave Wages Taken Before April 1, 2021

3.11.14.26.13 (01-01-2025) Line 8b (202012 - 202411) - Nonrefundable Credit Qualified Sick and Family Leave Wages Taken Before April 1, 2021 Valid for Tax Period 202012 through 202411. Edit the entry for non-transcription if the Tax Period is invalid.

# Line 8c (202112 - 202411) - Nonrefundable Credit Qualified Sick and Family Leave Wages Taken After March 31, 2021 and Before October 1, 2021

3.11.14.26.14 (01-01-2025) Line 8c (202112 - 202411) - Nonrefundable Credit Qualified Sick and Family Leave Wages Taken After March 31, 2021 and Before October 1, 2021 Valid for Tax Period 202112 through 202411. Edit the entry for non-transcription if the Tax Period is invalid.

# Line 8d (202012 - 202411) - Total Social Security, Medicare and Federal Income Taxes After Nonrefundable Credits

3.11.14.26.15 (01-01-2025) Line 8d (202012 - 202411) - Total Social Security, Medicare and Federal Income Taxes After Nonrefundable Credits Valid for Tax Period 202012 and later. Edit the entry for non-transcription if the Tax Period is invalid.

# Line 8e (202012 - 202411) - Refundable Credit Qualified Sick and Family Leave Wages Taken Before April 1, 2021

3.11.14.26.16 (01-01-2025) Line 8e (202012 - 202411) - Refundable Credit Qualified Sick and Family Leave Wages Taken Before April 1, 2021 For 2020, Line 8e was listed as Refundable portion of credit for qualified sick and family leave wages from Worksheet 3. Valid for Tax Periods 202012 through 202411. Edit the entry for non-transcription if the Tax Period is invalid.

# Line 8f (202112 - 202411) - Refundable Credit Qualified Sick and Family Leave Wages Taken After March 31, 2021 and Before October 1, 2021

3.11.14.26.17 (01-01-2025) Line 8f (202112 - 202411) - Refundable Credit Qualified Sick and Family Leave Wages Taken After March 31, 2021 and Before October 1, 2021 Valid for Tax Periods 202112 through 202411. Edit the entry for non-transcription if the Tax Period is invalid.

# Line 8g (202012 - 202411) - Qualified Sick Leave Wages for Leave Taken Before April 1, 2021

3.11.14.26.18 (01-01-2025) Line 8g (202012 - 202411) - Qualified Sick Leave Wages for Leave Taken Before April 1, 2021 For 2020, Line 8g was listed as Line 8f, Qualified Sick Leave Wages. Valid for Tax Periods 202012 through 202411. Edit the entry for non-transcription if the Tax Period is invalid.

# Line 8h (202012 - 202411) - Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Reported on Line 8g

3.11.14.26.19 (01-01-2025) Line 8h (202012 - 202411) - Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Reported on Line 8g For 2020, Line 8h was listed as Line 8g, Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages. Valid for Tax Periods 202012 through 202411. Edit the entry for non-transcription if the Tax Period is invalid.

# Line 8i (202012 - 202411) - Qualified Family Leave Wages for Leave Taken Before April 1, 2021

3.11.14.26.20 (01-01-2025) Line 8i (202012 - 202411) - Qualified Family Leave Wages for Leave Taken Before April 1, 2021 For 2020, Line 8i was listed as Line 8h, Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Valid for Tax Periods 202012 through 202411. Edit the entry for non-transcription if the Tax Period is invalid.

# Line 8j (202012 - 202411) - Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages Reported on Line 8i

3.11.14.26.21 (01-01-2025) Line 8j (202012 - 202411) - Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages Reported on Line 8i For 2020, Line 8i was listed as Line 8i, Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages Valid for Tax Periods 202012 through 202411. Edit the entry for non-transcription if the Tax Period is invalid.

# Line 8k (202112 - 202411) - Qualified Sick Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021

3.11.14.26.22 (01-01-2025) Line 8k (202112 - 202411) - Qualified Sick Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021 Valid for Tax Periods 202112 through 202411. Edit the entry for non-transcription if the Tax Period is invalid.

# Line 8l (202112 - 202411) - Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Reported on Line 8k

3.11.14.26.23 (01-01-2025) Line 8l (202112 - 202411) - Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Reported on Line 8k Valid for Tax Periods 202112 through 202411. Edit the entry for non-transcription if the Tax Period is invalid.

# Line 8m (202112 - 202411) - Qualified Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021

3.11.14.26.24 (01-01-2025) Line 8m (202112 - 202411) - Qualified Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021 Valid for Tax Periods 202112 through 202411. Edit the entry for non-transcription if the Tax Period is invalid.

# Line 8n (202112 - 202411) - Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Reported on Line 8m

3.11.14.26.25 (01-01-2025) Line 8n (202112 - 202411) - Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Reported on Line 8m Valid for Tax Periods 202112 through 202411. Edit the entry for non-transcription if the Tax Period is invalid.

# Lines 10 through 12 - FUTA Indicator Code (FIN Code)

3.11.14.26.26 (01-01-2022) Lines 10 through 12 - FUTA Indicator Code (FIN Code) Edit the FUTA Indicator (FIN) Code under the "Yes/No" boxes in Part II, on page 2 of Schedule H. Do not edit a FIN code when Part II has no significant money entries. Edit the FIN Code based on the taxpayer's answers to questions 10, 11, and 12, in Part II of Schedule H. Edit the FUTA Yes/No Indicator using the following guidelines: If Then All Questions 10, 11, and 12 are answered "Yes," Do not edit. See Figure 3.11.14-52, FUTA Yes/No Indicator. Any Questions 10, 11, and 12 are answered "No," Edit a "1" below the "Yes/No" box for Question 12. See Figure 3.11.14-52, FUTA Yes/No Indicator. Figure 3.11.14-52 Edit of the FUTA IndicatorFigure 3.11.14-52 show two examples of editing the FUTA Yes/No Indicator on Schedule H, Part II, Federal Unemployment (FUTA) Tax. The first example shows a section from Schedule H, Part II and the Yes box is checked on all lines 10, 11 and 12. A text box underneath the example that reads: When all questions are answered YES, do not edit. The second example shows the Yes boxes on Lines 10 and 12 are checked and the No box is checked on Line 11. A FUTA indicator 1 is edited underneath box 12 in the white space. A text box under the example reads: When any question is answered NO, edit code 1 FUTA Yes/No indicator. Please click here for the text description of the image. If the conditions in (4) above are not met, decide from the information given in Sections A and B in Part II of Schedule H using the chart below: If Then Entries are present in Section A only, Do not edit. Entries are present in Section B only, Edit a "1" below the "Yes/No" box for Question 12. Entries are present in both Section A and Section B, Delete the entries in Section A. Edit a "1" below the "Yes/No" box for Question 12. See Figure 3.11.14-53, Entries in Both Sections A and B. Entries are not present in either Section A or Section B, Do not edit. Figure 3.11.14-53 Schedule H, Part II, Sections A and B has entriesFigure 3.11.14-53 shows an example of editing when there are entries in both Sections A and B, Schedule H, as described above.Pictured is the top half of a completed Schedule H (Form 1040). The Yes box on Line 10 is checked. FUTA Indicator 1 is edited under Line 12. Section A and Section B both have entries and Section A was crossed out with a large X. A text box underneath reads: WHEN THERE ARE ENTRIES IN BOTH SECTIONS A AND B, DELETE ENTRIES IN SECTION A AND EDIT A 1 BELOW THE YES slash NO BOX FOR QUESTION 12. Please click here for the text description of the image.

# Line 13 - State Code

3.11.14.26.27 (01-01-2022) Line 13 - State Code Circle all states when more than one State Code or state name is present on line 13. Edit the State Code from the taxpayer's address listed in the entity part of the return when there are no State Codes or state names present. Valid State Codes are the fifty states plus the District of Columbia, the U.S. Virgin Islands and Puerto Rico. For a complete listing of valid State Codes, see below: State Code State AL Alabama AK Alaska AZ Arizona AR Arkansas CA California CO Colorado CT Connecticut DC District of Columbia DE Delaware FL Florida GA Georgia HI Hawaii ID Idaho IL Illinois IN Indiana IA Iowa KS Kansas KY Kentucky LA Louisiana ME Maine MD Maryland MA Massachusetts MI Michigan MN Minnesota MS Mississippi MO Missouri MT Montana NE Nebraska NV Nevada NH New Hampshire NJ New Jersey NM New Mexico NY New York NC North Carolina ND North Dakota OH Ohio OK Oklahoma OR Oregon PA Pennsylvania PR Puerto Rico RI Rhode Island SC South Carolina SD South Dakota TN Tennessee TX Texas UT Utah VT Vermont VA Virginia VI U.S. Virgin Islands WA Washington WV West Virginia WI Wisconsin WY Wyoming Edit Line 13 as follows: If Then The State Code is present, Underline the State Code on Line 13. The State Name is spelled out (not abbreviated as a State Code), Edit the correct State Code. See table above More than one State Code or State Name is present, Circle all State Codes and continue editing the return. There are no State Codes or State Names present, Edit the State Code that corresponds with the taxpayer's address listed in the entity section of Form 1041.

# Line 14 - FUTA Contributions Paid

3.11.14.26.28 (01-01-2016) Line 14 - FUTA Contributions Paid "X" Line 14 when the taxpayer has notated "0%" , "0% RATE" , or "ZERO PERCENT RATE" , etc. as the only entry.

# Line 15 - Total FUTA Wages

3.11.14.26.29 (01-01-2016) Line 15 - Total FUTA Wages Accept taxpayer's entry.

# Line 16 - FUTA Tax

3.11.14.26.30 (01-01-2016) Line 16 - FUTA Tax Accept taxpayer's entry.

# Line 17, Column (a) - FUTA State Code

3.11.14.26.31 (01-01-2022) Line 17, Column (a) - FUTA State Code A valid State Code (two alpha characters) must be present if there are significant entries in Section B of Schedule H. Valid State Codes are the fifty states plus the District of Columbia, the U.S. Virgin Islands and Puerto Rico. See IRM 3.11.14.26.27(3), Line 13 - State Code, for a complete listing of valid State Codes. Edit Line 17(a) as follows: If Then One or two State Codes are present, Underline the State Codes. More than two State Codes are present, or taxpayer notates SEE ATTACHED, Delete all State Codes. The State Name is spelled out (not abbreviated as a State Code), Delete the State Name. Edit the correct two-character State Code. There are no State Codes or State Names present, Edit the State Code that corresponds with the taxpayer's address listed in the Entity section of Form 1041.

# Line 18, Column (h) - FUTA Contributions Paid

3.11.14.26.32 (01-01-2016) Line 18, Column (h) - FUTA Contributions Paid "X" Line 18 when the taxpayer has written "0%" , "0% RATE" , or "ZERO PERCENT RATE" as the only entry.

# Line 19 - FUTA Total Tentative Credit

3.11.14.26.33 (01-01-2016) Line 19 - FUTA Total Tentative Credit Compute and edit Line 19 when it is blank by adding Lines 18(g) and 18(h). Edit line 19 of Schedule H as follows: If Then Line 19 is blank, but an entry is present on Line 18(g) and 18(h), Compute Line 19 by adding Lines 18(g) and 18(h). Lines 19, 18(g), and 18(h) are all blank, but an entry is present on Line 17(g) and 17(h), Compute Line 19 by adding Rows 1 and 2 of Lines 17(g) and 17(h). Lines 19, 18g, and 18(h) are all blank and Line 17(g) and 17(h) are also blank, Do not edit. Continue editing the return.

# Line 20 - Total FUTA Wages

3.11.14.26.34 (01-01-2016) Line 20 - Total FUTA Wages Accept taxpayer's entry.

# Line 24 - FUTA Tax

3.11.14.26.35 (01-01-2016) Line 24 - FUTA Tax Accept taxpayer's entry.

# Loose Schedule H

3.11.14.26.36 (01-01-2025) Loose Schedule H Taxpayers who are not required to file Form 1041 can still be required to file Schedule H (Form 1040). These taxpayers will file Schedule H alone. If a loose Schedule H is received Then With a payment, The Deposit function will notate "LOOSE SCHEDULE H" on the form and forward it to Code and Edit. Without a payment, Receipt & Control will route the Schedule H directly to Code and Edit. Route loose Schedules H to Receipt and Control, Media Transport Unit when "TRUST" or "ESTATE" is not noted in the Name Line. Note: Work leaders will review all forms to ensure transshipment is required prior to forwarding to the Media Transport Unit. Process all loose filed Schedule H with "TRUST" or "ESTATE" notated on the Name Line as BMF. Also, process as BMF, any loose filed Schedule H received with an EIN and a BMF Name Line (e.g., Kennedy Christian Church, Johnson's Home for the Elderly). Loose filed Schedule H received with remittance will have already been researched to obtain the Tax Period Ending and decide whether the taxpayer had a filing requirement for a Form 1041 (MFT 05) or a Form 1040 (MFT 30). Calendar Year Schedule H With Remittance - shown by the notation "LOOSE BMF SCHEDULE H" or "LOOSE BMF SCHEDULE H, 200X12" on Schedule H. Fiscal Year Schedule H With Remittance - shown by the same notation as calendar year filers, except the Tax Period Ending will be other than blank or "12" . Example: The notation might read "LOOSE BMF SCHEDULE H, 200X06" . Calendar or Fiscal Year Schedule H With No Remittance - Schedule will not have any notation.

# Loose Filed Calendar Year Schedule H (with Remittance)

3.11.14.26.36.1 (01-01-2025) Loose Filed Calendar Year Schedule H (with Remittance) Loose filed Calendar Year Schedule H received with remittance will have the notation "LOOSE BMF SCHEDULE H" or "LOOSE BMF SCHEDULE H, 200X12" . Edit the tax year of the loose filed Schedule H as follows: If Then TY 2011 or later, Prepare a Dummy Form 1041 (see (2) below). Edit Action Code 480. TY 2010 through 1995, Prepare a "Dummy" Form 1041 (see Item (2), below). Edit CCC "8" . Continue processing the "Dummy" Form 1041 and Schedule H. TY 1994 and Prior, Send Schedule H back to the taxpayer. "Dummy" Form 1041 Procedures - When preparing a "Dummy" Form 1041, ensure that all the following information is entered: Complete the Entity part of the return using information given from the Name Line at top of Page 1 and the Signature and Address Sections at bottom of Page 2. Edit Fiduciary Code "4" and Trust Code "3" Family Estate Trust. Edit lines 7 and 18b Schedule G and Form 1041, Line 26 as follows: If Then Line 8, Schedule H has an amount, Edit the amount to Line 7, Schedule G. Line 8e, Schedule H, has an amount (202012 - 202411), Edit the amount to Line 18b, Schedule G. Line 8f, Schedule H, has an amount (202012 - 202411), Edit the amount to Line 18b, Schedule G. Line 26, Schedule H, has an amount, Edit the amount to Line 7, Schedule G.

# Loose Filed Calendar Year Schedule H (without Remittance)

3.11.14.26.36.2 (01-01-2022) Loose Filed Calendar Year Schedule H (without Remittance) Loose filed Calendar Year Schedule H received without remittance will not have any indication of the Tax Period Ending or the Filing Requirement notated on the document. Assume that the Schedule H was filed for an IMF (Form 1040) account unless the taxpayer has notated "TRUST" or "ESTATE" on Schedule H. If this is notated, process as a BMF (Form 1041) return: Follow local procedures for researching the BMF and edit the Tax Period Ending and Filing Requirement as follows: If Then Calendar Year Return, Prepare a "Dummy" Form 1041. Continue processing the "Dummy" Form 1041 and Schedule H. Fiscal Year Return, Process as instructed in IRM 3.11.14.26.36.3, Loose Filed Fiscal Year Schedule H (with or without Remittances).

# Loose Filed Fiscal Year Schedule H (with or without Remittance)

3.11.14.26.36.3 (01-01-2025) Loose Filed Fiscal Year Schedule H (with or without Remittance) Federal employment taxes for household employees must be reported on a calendar year basis on Schedule H (Form 1040) for Tax Year ending 1995 or later. Process all loose filed Fiscal Year Schedule H's as follows: Issue Letter 177C to the taxpayer using an approved Correspondence Action Sheet. Enter the following in the "Fill–Ins" Section of the approved Correspondence Action Sheet: WE CANNOT PROCESS YOUR SCHEDULE H (FORM 1040) AS FILED WITHOUT A COMPLETED FORM 1041 (U.S. INCOME TAX RETURN FOR ESTATES AND TRUSTS). THE INFORMATION REPORTED ON LINE 6 OF YOUR FORM 1041, SCHEDULE G, MUST BE SUPPORTED BY THE INFORMATION ON YOUR SCHEDULE H. EFFECTIVE TY 1995, FEDERAL EMPLOYMENT TAXES FOR HOUSEHOLD EMPLOYEES MUST BE REPORTED ON A CALENDAR YEAR BASIS ON SCHEDULE H (FORM 1040). IF YOU FILED YOUR SCHEDULE H TO REPORT HOUSEHOLD EMPLOYMENT TAX (HET) FOR A FISCAL YEAR ENDING IN 2011, YOUR SCHEDULE H must HAVE HET FOR THE PERIOD JANUARY 1, 2010, THROUGH DECEMBER 31, 2010. RETURNS FILED WITH A FISCAL YEAR ENDING IN 2010 must HAVE HET FOR THE PERIOD JANUARY 1, 2009, THROUGH DECEMBER 31, 2009. WE WILL APPLY THE PAYMENT YOU SENT AS AN ESTIMATED PAYMENT TO YOUR FORM 1041 ACCOUNT FOR THE FISCAL PERIOD ENDING IN 2010. THE PAYMENT WILL BE APPLIED UNDER EMPLOYEE IDENTIFICATION NUMBER (EIN). IF THIS IS NOT THE CORRECT EIN, PLEASE LET US KNOW. Note: Use this paragraph for Remittance returns only. IF THE TAXES WERE ERRONEOUSLY REPORTED AND YOU DO NOT WANT YOUR PAYMENT APPLIED BUT INSTEAD WANT EITHER A REFUND OR THE PAYMENT NEEDS TO BE APPLIED TO ANOTHER TAX PERIOD, PLEASE WRITE TO US AT THE ADDRESS AT THE TOP OF THIS LETTER. IF YOU PREFER, YOU MAY CALL THE IRS TELEPHONE NUMBER LISTED IN THE LOCAL DIRECTORY. AN EMPLOYEE THERE must BE ABLE TO HELP YOU, BUT THE OFFICE AT THE ADDRESS SHOWN ON THIS LETTER IS THE MOST FAMILIAR WITH YOUR CASE. Note: Use this paragraph for Remittance returns only.

# Loose Filed Amended Schedule H

3.11.14.26.36.4 (01-01-2016) Loose Filed Amended Schedule H If the taxpayer has filed a Schedule H (Form 1040) with the notation "AMENDED" , "SUPPLEMENTAL" , "CORRECTION" or any other phrase signifying that the filing is for other than the original filing of the Schedule H: Edit CCC "G" (Amended Return) on the "Dummy" Form 1041. Continue editing the return.

# Schedule D (Form 1041) - Capital Gains and Losses

3.11.14.27 (01-01-2026) Schedule D (Form 1041) - Capital Gains and Losses Only accept a Schedule D (Form 1041) version. If a Schedule D other than a Schedule D (Form 1041) version is submitted to support the entry on line 4 (Form 1041), then correspond for the Schedule D (Form 1041). Edit Schedule D in dollars only. Delete any Schedule D with annotations such as alternative minimum tax, AMT, S-Corp part, EBST part, etc. Move deleted Schedule D out of the sequence order. Only one Schedule D is processed. If more than one is attached, Do the following: Note: If Line 19(3)/20 is blank, compute by adding Lines 19(1) and 19(2), Use the comparison with Line 4, Form 1041. It is not necessary to edit Line 19(3). If Then Line 4 of Form 1041 equals Line 19(3)/20 of one of the Schedules D, Process the Schedule D that matches Line 4 of Form 1041. Ensure that it is the first Schedule D in sequence order. Line 4 of Form 1041 equals the combined totals of the multiple Schedules D Line 19(3)/20, Edit the combined totals of the Schedules D to the first Schedule D. Bracket if negative. Line 4 of Form 1041 equals Line 19(3) or Line 20 on more than one of the attached Schedules D, X any Schedules D with annotations such as Alternative Minimum Tax, AMT, S-Corp part, ESBT part, etc. Line 4 of Form 1041 doesn't equal Line 19(3) or Line 20 on any of the attached Schedules D, Correspond for the correct Schedule D amount.

# Schedule D, Part I and II (Page 1)

3.11.14.27.1 (01-01-2020) Schedule D, Part I and II (Page 1) Transcription of page 1, Schedule D will be for tax year 2013 and subsequent tax returns with a current revision of Schedule D attached. We are capturing the data entered on the Schedule D. If a 201311 or prior revision is used, convert page 2 line numbers and edit as necessary. Line through the line numbers on page 1, Schedule D.

# Schedule D, Part III, (Page 2)

3.11.14.27.2 (03-07-2024) Schedule D, Part III, (Page 2) When Schedule D (Form 1041) is attached the following lines will be transcribed from Schedule D, Part III Column 2, Page 2. Line 17 (Net Short-Gain or Loss) - Positive or negative. Line 18a (Net Long-Term Gain or Loss) - Positive or negative. Line 18b (Unrecaptured Section 1250 Gain) - Positive only. Don't"X" if negative. Line 18c (28% Rate Gain or Loss) - Positive or negative. Line 19 (Total Net Gain or Loss) - Positive or negative. Line 4 is verified with entries, if any reported on Schedule D, Part III, columns (1), (2), and/or (3). "Dummy" Schedule D, Page 2 if missing, if return is TY 2013 or later: Exception: Do not verify or "dummy" if attached to a "Nontaxable" Grantor Trust. Do not Dummy if corresponding for other missing items, has the request for Schedule D in the correspondence. If Then The Schedule D, Line 7 amount equals Line 4 (Form 1041) and no amount on Schedule D, Line 16, Edit the Line 7 amount to Lines 17(2) and 19(2). Bracket if negative. The Schedule D, Line 16 amount equals Line 4 (Form 1041) and no amount on Schedule D, Line 7, Edit the Line 16 amount to Lines 18a (2) and 19 (2). Bracket if negative. The total of Schedule D, Lines 7 and 16 equals Line 4 (Form 1041), Edit the Line 7 amount to Lines 17(2). Edit the Line 16 amount to Lines 18a(2). Compute the total of Lines 17(2) and 18a(2). Edit the total to Line 19(2). Bracket if negative. The total of Schedule D, Lines 7 and 16 doesn't equal Line 4 (Form 1041), Do not dummy Schedule D, Page 2. Correspond. Exception: Don't correspond if negative amount. If Schedule D, Part III, Columns (1) and (2) are both blank And Then Line 17, Schedule D, Line 7 has an entry, Edit the amount from Line 7 to Line 17(2). Bracket if negative. Line 17, Schedule D, Line 7 is blank but there are entries in Lines 1a - 6, Column (h), Compute the total of Lines 1a - 6 Column (h) and edit to Line 17(2). Bracket if negative. Line 18a, Schedule D, Line 16 has an entry, Edit the amount from Line 16 to Line 18a (2). Bracket if negative. Line 18a, Schedule D, Line 16 is blank but there are entries in Lines 8a - 15, Column (h), Compute the total of Lines 8a - 15, Column (h) and edit to Line 18a (2). Bracket if negative. If And Then Line 19 is blank, Entry(s) present in Line 17, Column (2) and/or Line 18a, Column (2), Compute the total of Line 17(2) and Line 18a(2). Edit the amount to Line 19(2). Bracket if negative. Verify Line 4 of Form 1041 with amounts reported on Schedule D, Part III as follows: Exception: If the ESBT box is checked on Form 1041, don't edit money amounts from Schedule D to Line 4 of Form 1041. If And Then Line 4 has a positive entry, Line 4 equals Line 19(3), Do not edit. Line 4 has a positive entry, Line 4 doesn't equal Line 19(3), Note: Compute line 19(3) when necessary. "X" the amount on Line 4. Edit the amount reported on Line 19(3) of Schedule D in its place. Line 4 has a ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Line 4 equals Line 20 (Line 19(3), if Line 20 is blank, zero or illegible), Do not edit. Line 4 has a ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Line 4 doesn't equal Line 20 (Line 19(3), if Line 20 is blank, zero, or illegible), X" the amount on Line 4. Edit the amount reported on Line 20 (Line 19(3) if Line 20 is blank, zero, or illegible) in its place. Bracket the edited amount. Note: Do not edit more than ≡ ≡ ≡ ≡ ≡ ≡. Line 4 has a ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 1041 is not a final return, "X" the amount on Line 4. Edit ≡ ≡ ≡ ≡ on Line 4. Bracket the edited amount. See Figure 3.11.14-54, Line 4 - Capital Gains and Losses (Sch D, Form 1041). Line 4 has a ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 1041 is a final return, DO not edit. Line 4 is blank, zero, or illegible, A positive entry, a gain is present on Line 19(3), Edit the amount from Line 19(3) to Line 4 of Form 1041. See Figure 3.11.14-55, Line 4 blank - Schedule D Income/Loss. Line 4 is blank, zero, or illegible, A negative entry, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ present on Line 20 (Line 19(3), if Line 20 is blank, zero, or illegible), Edit the amount from Line 20 (Line 19(3) if Line 20 is blank, zero, or illegible) to Line 4 of Form 1041. Bracket the edited amount. Figure 3.11.14-54 Line 4, 1041 amount Loss is more than $3,000Figure 3.11.14-54 shows an example of editing line 4 of Form 1041. Pictured is the top half of a completed current year Form 1041 and page 2, Schedule D, Part III and Part IV.Form 1041: Line 4 (Capital Gains and losses) shows negative $6,800. An X is edited in front of the negative $6,800 and a negative 3,000 is edited to the left of line 4.Schedule D, Part III shows negative $6,800 dollars on Line 18a (column 2 and 3) and negative $6,800 on line 19 (column 2 and 3). Schedule D, Part IV shows negative $3,000 on line 20. Please click here for the text description of the image. Figure 3.11.14-55 Line 4, 1041 is blank and Schedule D is attached with positive entryFigure 3.11.14-55 shows an example of editing Line 4 from Schedule D, Line 19(3). Pictured is the top third of a completed current Form 1041, calendar year return with no entry on Line 4 of original return and page 2, Schedule D, Part III. Form 1041, Line 4 has an edited entry of 1,825 dollars (with an arrow is pointing to the amount).Schedule D, Part III, shows 1,825 dollars on lines 18a (column 2 and 3) and on line 19 (column 2 and 3). Below the pictured schedule D is a text box that reads: A positive amount edited to line 4 of Form 1041 is supported by Line 19(3), Schedule D, Part III. A negative amount is supported by Line 20, Schedule D, Part IV or Line 19(3) if Line 20 is blank, zero, illegible, or missing. Please click here for the text description of the image.

# Schedule D, Part V (Page 2)

3.11.14.27.3 (01-01-2023) Schedule D, Part V (Page 2) Schedule D, Part V, page 2, Tax Computation Using Maximum Capital Gains Rates, is completed by the taxpayer when both Lines 18a and 19 in column (2) are gains, or an amount is entered in Part I or Part II and there is an entry on Form 1041, Line 2b (2) and Form 1041, line 23 is more than zero. If Line 43 is blank, compute by adding Lines 37, 41, and 42. If an amount is present on Line 23 of Schedule D and Form 1041, Page 1 Line 2b (2) is blank, edit the amount from Schedule D, Line 23 to Line 2b(2) of Form 1041. Exception: If the ESBT box is checked on Form 1041, do not edit the amount to Line 2b (2) of Form 1041. If a positive amount is present on Line 45 of Schedule D and Line 1a of Schedule G is blank, edit amount from Line 45 to Line 1a of Schedule G.

# Schedule D-1, Continuation

3.11.14.27.4 (01-01-2025) Schedule D-1, Continuation Schedule D-1 (Form 1041) is used to report gains and losses from the sale or exchange of capital assets if there are more transactions to report than spaces on Lines 1a or 6a of Schedule D Note: Schedule D-1 is not valid for returns after 201212. Schedule D-1 must be attached to support Line 1b and/or Line 6b of Schedule D. Note: Do not correspond for missing Schedule D-1 unless you are corresponding for other items and the return is 201212 or earlier. If an amount is present on Line 6b of Schedule D and Schedule D-1 or supporting attachment is missing: If Then Corresponding for other missing information, i.e., Schedules, Forms, signature, etc., Add the request for missing Schedule D-1 in the correspondence to the filer. No other correspondence items, Do not edit. Move Schedule D-1 out of the sequence order for Form 1041.

# Form 8949 - Sales and Other Dispositions of Capital Assets

3.11.14.28 (01-01-2025) Form 8949 - Sales and Other Dispositions of Capital Assets Form 8949 is valid for Tax Periods 201712 and later. The Form 8949 must be placed in sequenced order following Schedule D. If there are more than one Form 8949 attached, sequence the Form 8949 with the edited data. See IRM 3.11.14.3.3, Sequence - Form 1041.

# Line 1(f) - Part I Short-Term (Page 1)

3.11.14.28.1 (01-01-2022) Line 1(f) - Part I Short-Term (Page 1) If the taxpayer has entered a "Z" or "Y" in any rows of Part I, Line 1, Column (f), edit a CCC "M" . If a code "Z" is present for any row on Line 1, Column (f), then edit the first line row with the code "Z" as follows: If Then An EIN is present in column (a) Underline the EIN. No EIN is present or is illegible in column (a) Do not edit. A Date Acquired present in column (b) Underline the Date Acquired present. No Date Acquired present or is illegible in column (b) Do not edit. A dollar amount is present in column (g) Underline the dollar amount. No dollar amount is present in column (g) Do not edit. If more than one row has a "Z" in Column (f) Edit a "Z-1" to the right margin of Part I, Line 1, Row 1. If a code "Y" is present for any row on Line 1, Column (f), then edit the first line row with the code "Y" as follows: If Then An EIN is present in column (a) Underline the EIN. No EIN is present or is illegible in column (a) Do not edit. A Date Acquired present in column (b) Underline the Date Acquired present. No Date Acquired present or is illegible in column (b) Do not edit. A dollar amount is present in column (g) Underline the dollar amount. No dollar amount is present in column (g) Do not edit. If more than one row has a "Y" in Column (f) Edit a "Y-1" to the right margin of Part I, Line 1, Row 1.

# Line 1(f) - Part II Long-Term (Page 2)

3.11.14.28.2 (01-01-2022) Line 1(f) - Part II Long-Term (Page 2) If the taxpayer has entered a "Z" or "Y" in any of the rows in Part II, Line 1, Column (f), edit a CCC "M" . If a code "Z" is present for any row on Line 1, Column (f), then edit the first line row with the code "Z" as follows: If Then An EIN is present in column (a) Underline the EIN. No EIN is present or is illegible in column (a) Do not edit. A Date Acquired present in column (b) Underline the Date Acquired present. No Date Acquired present or is illegible in column (b) Do not edit. A dollar amount is present in column (g) Underline the dollar amount. No dollar amount is present in column (g) Do not edit. If more than one row has a "Z" in Column (f) Edit a "Z-1" to the right margin of Part II, Line 1, Row 1. If a code "Y" is present for any row on Line 1, Column (f), then edit the first line row with the code "Y" as follows: If Then An EIN is present in column (a) Underline the EIN. No EIN is present or is illegible in column (a) Do not edit. A Date Acquired present in column (b) Underline the Date Acquired present. No Date Acquired present or is illegible in column (b) Do not edit. A dollar amount is present in column (g) Underline the dollar amount. No dollar amount is present in column (g) Do not edit. If more than one row has a "Y" in Column (f) Edit a "Y-1" to the right margin of Part II, Line 1, Row 1.

# Form 4797 - Sales of Business Property

3.11.14.29 (01-01-2026) Form 4797 - Sales of Business Property Form 4797 is valid for Tax Periods 202501 and later. Place Form 4797, Sales of Business Property, in sequence order if significant entries are present on the following lines. See IRM 3.11.14.3.3(1), Sequence of Return - Form 1041, for the sequence order of Form 4797. Note: A significant entry is defined as any amount other than zero. Line Line Description Year Revision 1a Gross proceeds from Sales or Exchanges from Form(s) 1099-B or 1099-S 2025 and later. 1b Total Amount of Gain from Partial Dispositions of MACRS Assets 2025 and later. 1c Total Amount of Loss from Partial Dispositions of MACRS Assets 2025 and later. 7 Total Gain or Loss Amount 2025 and later. 8 Non-recaptured net Section 1231 Losses from Prior Years Amount 2025 and later. 9 Total Gain Less Non-recapture Sect 1231 Losses Amount 2025 and later. 17 Total Ordinary Gain or Loss Amount 2025 and later. 18a Form 4684 Part 3 Property Held total Loss Amount 2025 and later. 18b Form 4797 Gain or Loss Minus F4684 Part 3 Property Held Total Loss Amount 2025 and later.

# Form 8995 / Form 8995-A - Qualified Business Income Deduction

3.11.14.30 (01-01-2025) Form 8995 / Form 8995-A - Qualified Business Income Deduction This subsection has instructions for processing one of the following two forms: Form 8995, Qualified Business Income Deduction Simplified Computation Form 8995-A, Qualified Business Income Deduction These forms will only be edited for Tax Period 201912 and later. The Form 8995 or Form 8995-A must be placed in sequenced order following Form 8949. If an amount is present on Line 20, Form 1041, then Form 8995 or Form 8995-A must be attached. Do not correspond if missing, the return will systemically go to ERS for correction.

# Line 3 or Line 2 - Qualified Business Net Loss Carryforward

3.11.14.30.1 (01-01-2021) Line 3 or Line 2 - Qualified Business Net Loss Carryforward Line 3 is from Form 8995 and Line 2 is from Form Schedule C (Form 8995-A). If an amount is present, accept the entry.

# Line 5 or Line 27 - Qualified Business Income Component

3.11.14.30.2 (01-01-2020) Line 5 or Line 27 - Qualified Business Income Component Line 5 is from Form 8995 and Line 27 is from Form 8995-A. If an amount is present, accept the entry.

# Line 7 or Line 29 - Qualified REIT Dividends and PTP Loss Carryforward

3.11.14.30.3 (01-01-2021) Line 7 or Line 29 - Qualified REIT Dividends and PTP Loss Carryforward Line 7 is from Form 8995 and Line 29 is from Form 8995-A. If an amount is present, accept the entry.

# Line 9 or Line 31 - Qualified REIT/PTP Component

3.11.14.30.4 (01-01-2020) Line 9 or Line 31 - Qualified REIT/PTP Component Line 9 is from Form 8995 and Line 31 is from Form 8995-A. If an amount is present, accept the entry.

# Line 12 or Line 34 - Net Capital Gains

3.11.14.30.5 (01-01-2020) Line 12 or Line 34 - Net Capital Gains Line 12 is from Form 8995 and Line 34 is from Form 8995-A. If an amount is present, accept the entry.

# Line 16 or Line 6 - Total Qualified Business Loss Carryforward

3.11.14.30.6 (01-01-2021) Line 16 or Line 6 - Total Qualified Business Loss Carryforward Line 16 is from Form 8995 and Line 6 is from Form Schedule C (Form 8995-A). If an amount is present, accept the entry.

# Line 38 - Domestic Production Activities Deduction

3.11.14.30.7 (01-01-2020) Line 38 - Domestic Production Activities Deduction Line 38 is from Form 8995-A. If an amount is present, accept the entry.

# Line 17 or Line 40 - Total Qualified REIT Dividends and PTP Loss Carryforward

3.11.14.30.8 (01-01-2021) Line 17 or Line 40 - Total Qualified REIT Dividends and PTP Loss Carryforward Line 17 is from Form 8995 and Line 40 is from Form 8995-A. If an amount is present, accept the entry.

# Schedule C (Form 1040) - Profit or Loss From Business

3.11.14.31 (01-01-2026) Schedule C (Form 1040) - Profit or Loss From Business Schedule C (Form 1040) is valid for Tax Periods 202501 and later. Place Schedule C (Form 1040), Profit or Loss From Business, in sequence order if significant entries are present on the following lines. See IRM 3.11.14.3.3(1), Sequence of Return - Form 1041, for the sequence order of Schedule C (Form 1040). Note: A significant entry is defined as any amount other than zero. Line Line Description B, NAICS Code 1, Schedule C Gross Receipts or Sales Amount 2 Schedule C Returns and Allowances 3 Schedule C Gross Less Allowances Amount 4 Schedule C Cost of Goods Sold From Line 42 6 Schedule C Other Income Amount 28 Schedule C total Expenses Before Business Use of Home Amount No editing is required for Schedule C (Form 1040).

# Schedule E (Form 1040) - Supplemental Income and Loss

3.11.14.32 (01-01-2026) Schedule E (Form 1040) - Supplemental Income and Loss Schedule E (Form 1040) is valid for Tax Periods 202501 and later. Place Schedule E (Form 1040), Supplemental Income and Loss, in sequence order if significant entries are present on the following lines. See IRM 3.11.14.3.3(1), Sequence of Return - Form 1041, for the sequence order of Schedule E (Form 1040). Note: A significant entry is defined as any amount other than zero. Line Line Description 23a Schedule E Total for All Rental Properties Amount 23b Schedule E Total for All Royalty Properties Amount 23e Schedule E Total Expenses for All Properties Amount 24 Schedule E Income Amount 24 Schedule E Losses Amount 27 Check-box Loss Not Allowed In A Prior Year Check-box 30 Schedule E Total Passive and Nonpassive Income Amount 31 Schedule E total Passive and Nonpassive Expenses Amount 40 Schedule E Net Farm Rental Income Loss Amount 42 Schedule E Reconciliation of Farming and Fishing Income Amount 43 Schedule E Reconciliation of Real Estate Professionals Amount No editing is required for Schedule E (Form 1040)

# Schedule F (Form 1040) - Profit or Loss from Farming

3.11.14.33 (01-01-2026) Schedule F (Form 1040) - Profit or Loss from Farming Schedule F (Form 1040) is valid for Tax Periods 202501 and later. Place Schedule F (Form 1040), Profit or Loss From Farming, in sequence order if significant entries are present on the following lines. See IRM 3.11.14.3.3(1), Sequence of Return - Form 1041, for the sequence order of Schedule F (Form 1040). Note: A significant entry is defined as any amount other than zero. Line Line Description B NAICS Code 1b Schedule F Cost of Livestock Amount 1c Schedule F Livestock Sales Less Cost Amount 2 Schedule F Sale of Livestock and Other Products Amount 3a Schedule F Cooperative Distributions Amount 3b Schedule F Cooperative Distributions Taxable Amount 4a Schedule F Agricultural Program Payments Amount 4b Schedule F Agricultural Program Payments Taxable Amount 5b Schedule F CCC Loans Forfeited Tax Amount 6a Schedule F Crop Insurance Proceeds Federal Disaster Payments Amount 6b Schedule F Crop Insurance Proceeds and Federal Disaster Payments Amount 7 Schedule F Custom Hire Income Amount 8 Schedule F Other Income Including Federal and State Gasoline or Fuel Tax Credit or Refund 9 Schedule F Gross Income Amount 33 Schedule F Total Expenses Amount 38a Schedule F Cooperative Distributions Amount 38b Schedule F Accrual Cooperative Distributions Taxable Amount 39a Schedule F Accrual Agricultural Program Payments Amount 40b Schedule F Accrual CCC Loans Forfeited Amount 43 Schedule F Accrual Other Income Amount 44 Schedule F Accrual Total Income Before Adjustments Amount 50 Schedule F Accrual Gross Income Amount No editing is required on Schedule F (Form 1040).

# Form 4136 - Credit for Federal Tax Paid on Fuels

3.11.14.34 (01-01-2026) Form 4136 - Credit for Federal Tax Paid on Fuels Form 4136, Credit for Federal Tax Paid on Fuels, must be attached if a significant entry is present on Line 17, Schedule G. Correspond if Form 4136 is missing. Form 4136 must be placed in sequence order. If Fuel Tax Credit is claimed on Line 17, Schedule G and Form 4136 is attached: Perfect column (e) if blank when there is an entry in Column (c). Column (e) must equal Line 17, Form 4136. If perfection is not possible, correspond. Code and Edit is not required to renumber the lines on prior year Form 4136 to current year format. Column (e) credit amounts are transcribed using the corresponding Credit Reference Number (CRN) in Column (f).

# Form 8978 - Partner's Audit Liability Under Section 6226

3.11.14.35 (01-01-2025) Form 8978 - Partner's Audit Liability Under Section 6226 The form will only be edited for Tax Period 201712 and later. Place Form 8978 and or Schedule A (Form 8978) in sequence order and must follow Form 4136 if any if the following apply: Any of the "Source of review year adjustments" check boxes are checked on Form 8978 or Schedule A (Form 8978). Significant entries are present on Form 8978, Part I, Line 14, Part II, Line 16, or Part III, Line 18. Note: No editing is required for these lines.

# Source of Review Year Adjustment Check Boxes Form 8978 and Schedule A Form 8978

3.11.14.35.1 (01-01-2025) Source of Review Year Adjustment Check Boxes Form 8978 and Schedule A Form 8978 Located just below the Name of Partners box for Form 8978 and Schedule A (Form 8978). The Check Boxes are valid for Tax Period 202112 and later. If the tax period is not valid, edit the check boxes for non-transcription. If the tax period is valid, edit the digit to the right margin of Form 8978, Part I row as follows: If And Then Only Form 8978 is attached, One or more of the boxes are checked, Edit: "1" if the BBA check box is marked. "2" if the AAR check box is marked. "3" if Both the BBA and AAR check boxes are marked. Form 8978 and Schedule A (Form 8978) are attached, The boxes on Form 8978 and Schedule A (Form 8978) are marked the same, On Form 8978, edit the Form 8978 Source of Review Year Adjustment Check Box digit using the Form 8978 data to determine the code. Form 8978 and Schedule A (Form 8978) are attached, The boxes on Form 8978 are marked differently on Schedule A (Form 8978), On Form 8978, edit on Form 8978 Source of Review Year Adjustment Check Box digit using the Schedule A (Form 8978) data to determine the code. Only Schedule A (Form 8978), is attached, No editing is required.

# Line 14, Part I - Total Reporting Year Tax

3.11.14.35.2 (01-01-2020) Line 14, Part I - Total Reporting Year Tax The amount is positive or negative. If the entry is a negative amount, then edit the amount as negative.

# Line 16, Part II - Total Penalties

3.11.14.35.3 (01-01-2020) Line 16, Part II - Total Penalties If an amount is present, accept the entry.

# Line 18, Part III - Total Interest Amount

3.11.14.35.4 (01-01-2020) Line 18, Part III - Total Interest Amount If an amount is present, accept the entry.

# Form 965-A - Individual Report of Net 965 Tax Liability

3.11.14.36 (01-01-2026) Form 965-A - Individual Report of Net 965 Tax Liability This form is only filed for Tax Period 201712 and later or until the taxpayer's liability is paid in full. If the Tax Period on the return is 201711 and prior, then edit the Form 965-A for non-transcription. Place Form 965-A in sequence order and must follow Form 8978. If an amount is present on Line 25, Form 1041 or Line 15, Part II, Schedule G, and Form 965-A is not attached, then correspond for Form 965-A. Exception: For Tax Period 202112 and later returns do not correspond. Form 965-A will not be attached to Form 1041 or 1041-N for Tax Year 2021 and later. Edit CCC "J" if the return is shown as Section 965 return as follows: If Then Tax Period is 202012 and later, Any of the following apply: Amount on Line 25, Form 1041 (Line 19, 201912 - 202212, Line 17, 202312 and later Form 1041-N). Amount on Line 15, Sch. G, Part II, Form 1041. Form 965-A attached and: Amount on Line 4, Columns (a), (j) or (k). Amount on Line 4, Columns (f), Part II. "Section 965" or "965 Tax" (or similar language) notated on the return, attachments, or statements. Tax Period is 201912 - 202011, Any of the following apply: Amount on Line 25, Form 1041 (Line 19, Form 1041-N). Amount on Line 15, Sch. G, Part II, Form 1041. Form 965-A attached and: Amount on Line 3, Columns (a), (j) or (k). Amount on Line 3, Columns (f), Part II. "Section 965" or "965 Tax" (or similar language) notated on the return, attachments, or statements. Tax Period is 201812 - 201911, Any of the following apply: Amount on Line 24, Form 1041 (Line 19, Form 1041-N). Amount on Line 25f, Form 1041. Form 965-A attached and: Amount on Line 2, Columns (a), (j) or (k). Amount on Line 2, Columns (f), Part II. "Section 965" or "965 Tax" (or similar language) notated on the return, attachments, or statements. Tax Period is 201712 - 201811, Any of the following apply: Form 965-A attached and: Amount on Line 1, Columns (a), (j) or (k). Amount on Line 1, Columns (f), Part II. "Section 965" or "965 Tax" (or similar language) notated on the return, attachments, or statements. Edit CCC "B" if the return has a Section 965(i) election listed as follows: If Then Tax Period is 202012 - 202211, Form 965-A attached and both entries are present: Part I, Line 4, Column (e). Part III, Line 4, Column (e). Tax Period is 201912 - 202011, Form 965-A attached and both entries are present: Part I, Line 3, Column (e). Part III, Line 3, Column (e). Tax Period is 201812 - 201911, Form 965-A attached and both entries are present: Part I, Line 2, Column (e). Part III, Line 2, Column (e). Tax Period is 201712 - 201811, Form 965-A attached and both entries are present: Part I, Line 1, Column (e). Part III, Line 1, Column (e). If CCC "J" or "B" (Section 965(i) Election) was edit on a Tax Period 201712 - 201811 return, edit as follows: If Then Form 965-A is attached and both entries are present: Line 1, Column (f), Part I Line 1, Column (g), Part 1, Yes box marked. Edit Action Code 460 on the return. Attach to return Form 4227 to route to ERS Rejects. Notate on Form 4227 Sec. 965 CCC B/J.

# Part I - Report of Net Tax Liability and Election to Pay Installments

3.11.14.36.1 (01-01-2025) Part I - Report of Net Tax Liability and Election to Pay Installments This part can have data for Tax years 2017 through 2020. Each Line row will pertain to a specific Tax Year and the following line rows will be edited according to the instructions given in this subsection: Line 1 row - Tax Year 2017 Columns (a), (j), and (k) Line 2 row - Tax Year 2018 Columns (a), (j), and (k) Line 3 row - Tax Year 2019 Columns (a), (j), and (k) Line 4 row - Tax Year 2020 Columns (a), (j), and (k) Left of Line 6 row - Part I Additional Information Indicator

# Line 1 Row - 1(a), 1(j) and 1(k)

3.11.14.36.1.1 (01-01-2020) Line 1 Row - 1(a), 1(j) and 1(k) This line row is for Tax Year 2017 Edit as follows: Line Line name Editing 1(a) Inclusion Liability Triggering Event Year 1 If the Year is other than 2017, then edit the year to the correct line year 1(j) Net Tax Liability Transferred Amount 1 If the amount entered is a negative amount, then edit the amount as negative. 1(k) Buyer Seller Transferrer Tax ID Number 1 Accept the entry as entered.

# Line 2 Row - 2(a), 2(j) and 2(k)

3.11.14.36.1.2 (01-01-2024) Line 2 Row - 2(a), 2(j) and 2(k) This line is for Tax Year 2018 Edit as follows: Line Line name Editing 2(a) Inclusion Liability Triggering Event Year 2 If the Year is other than 2018, then edit the year to the correct line year 2(j) Net Tax Liability Transferred Amount 2 If the amount entered is a negative amount, then edit the amount as negative. 2(k) Buyer Seller Transferrer Tax ID Number 2 Accept the entry as entered.

# Line 3 Row - 3(a), 3(j) and 3(k)

3.11.14.36.1.3 (01-01-2023) Line 3 Row - 3(a), 3(j) and 3(k) This line is for Tax Year 2019 Line Line name Editing 3(a) Inclusion Liability Triggering Event Year 3 If the Year is other than 2019, then edit the year to the correct line year 3(j) Net Tax Liability Transferred Amount 3 If the amount entered is a negative amount, then edit the amount as negative. 3(k) Buyer Seller Transferrer Tax ID Number 3 Accept the entry as entered.

# Line 4 - Row 4(a), 4(j) and 4(k)

3.11.14.36.1.4 (01-01-2023) Line 4 - Row 4(a), 4(j) and 4(k) This line is for Tax Year 2020 Line Line name Editing 4(a) Inclusion Liability Triggering Event Year 4 If the Year is other than 2020, then edit the year to the correct line year 4(j) Net Tax Liability Transferred Amount 4 If the amount entered is a negative amount, then edit the amount as negative. 4(k) Buyer Seller Transferrer Tax ID Number 4 Accept the entry as entered.

# Line 6 - Part I Additional Information Indicator

3.11.14.36.1.5 (01-01-2020) Line 6 - Part I Additional Information Indicator If the taxpayer has entered information in any columns for line 6 or subsequent lines, edit a "1" to left of line 6.

# Part IV - Annual Report of Deferred Net 965 Tax Liability

3.11.14.36.2 (01-01-2025) Part IV - Annual Report of Deferred Net 965 Tax Liability This part can have data for Tax years 2017 through 2020. Each Line row will pertain to a specific Tax Year and the following line rows will be edited according to the instructions given in this subsection: Line 1 row - Tax Year 2017 columns (f) Line 2 row - Tax Year 2018 columns (f) Line 3 row - Tax Year 2019 columns (f) Line 4 row - Tax Year 2020 columns (f) Line 5 row - Tax Year Columns (f) Left of Line 6 - Part IV Additional Information Indicator Line 10 - Column (j)

# Line 1(f) - 2017 Net Tax Liability Triggered Amount 1

3.11.14.36.2.1 (01-01-2020) Line 1(f) - 2017 Net Tax Liability Triggered Amount 1 This entry is valid for Tax Year 2017 and is dollars only and negative only. If the amount is for Tax Year 2017, accept the entry. If the amount is for a tax year other than 2017, edit the entry to the correct Tax Year line column (f).

# Line 2(f) - 2018 Net Tax Liability Triggered Amount 1

3.11.14.36.2.2 (01-01-2020) Line 2(f) - 2018 Net Tax Liability Triggered Amount 1 This entry is valid for Tax Year 2018 and is dollars only and negative only. If the amount is for Tax Year 2018, accept the entry. If the amount is for a tax year other than 2018, edit the entry to the correct Tax Year line column (f).

# Line 3(f) - 2019 Net Tax Liability Triggered Amount 1

3.11.14.36.2.3 (01-01-2020) Line 3(f) - 2019 Net Tax Liability Triggered Amount 1 This entry is valid for Tax Year 2019 and is dollars only and negative only. If the amount is for Tax Year 2019, accept the entry. If the amount is for a tax year other than 2019, edit the entry to the correct Tax Year line column (f).

# Line 4(f) - 2020 Net Tax Liability Triggered Amount 1

3.11.14.36.2.4 (01-01-2020) Line 4(f) - 2020 Net Tax Liability Triggered Amount 1 This entry is for Tax Year 2020 and is dollars only and negative only. If the amount is for Tax Year 2020, accept the entry. If the amount is for a tax year other than 2020, edit the entry to the correct Tax Year line column (f).

# Line 6 - Part IV Additional Information Indicator

3.11.14.36.2.5 (01-01-2020) Line 6 - Part IV Additional Information Indicator If the taxpayer has entered information in any columns for line 6 or subsequent lines, edit a "1" to left of line 6.

# Column (i) Total - Total Deferred Net Tax Liability Amount

3.11.14.36.2.6 (01-01-2020) Column (i) Total - Total Deferred Net Tax Liability Amount This entry is the total deferred amounts of all year's combined from line rows 1 - 10 in column (i). This amount is dollars only and positive only. Accept the entry as entered.

# Form 8941 - Credit for Small Employer Health Insurance Premiums

3.11.14.37 (01-01-2025) Form 8941 - Credit for Small Employer Health Insurance Premiums Place Form 8941 in sequence order if significant entries are present. Form 8941, Credit for Small Employer Health Insurance Premiums, is required to be filed with 1041 returns when claiming any amount on Form 3800, Part III, Line 4h, unless there is an EIN next to it, then Form 8941 is not required. If Form 8941 is required but not attached, or incomplete, correspond. For more information on Form 8941, see IRM 3.11.14.39.43, Line 4h - Form 8941.

# Reserved

3.11.14.38 (01-01-2020) Reserved Reserved

# Form 3800 - General Business Credit

3.11.14.39 (09-23-2025) Form 3800 - General Business Credit Form 3800, General Business Credit, is required to be filed with the return when an amount is present on Schedule G, Line 2b, General Business Credit. Place Form 3800 in sequence order if significant entries are present. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ For Tax Year 2022 and prior - If multiple copies of page 3, Form 3800 are attached follow the instructions below: If And Then More than one copy of Page 3, Form 3800 is attached, Box I is checked on one copy of Page 3, Place copy with Box I checked behind Page 2, Form 3800. Staple all copies of Page 3 together. More than one copy of Page 3, Form 3800 is attached, Box I is checked on more than one copy of Page 3, Place first copy of Page 3 with Box I checked behind Page 2, Form 3800. Staple all copies of Page 3 together. More than one copy of Page 3, Form 3800 is attached, Box I is not checked on any copy of Page 3, Staple all copies of page 3 together.

# Line 1a - Form 3468 Part II

3.11.14.39.1 (01-01-2025) Line 1a - Form 3468 Part II Form 3468, Investment Credit, is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 1a, Column (g)* or Form 1041, Schedule G, Line 2b** for Form 3468, do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part I, Line 1a for 2010 and prior) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 3468 is not attached, Correspond. Form 3468 has an entry on Line 8 and Form 3800 has an entry on Line 1a, Edit CCC "V" . Note: This is only valid for tax period 201001 to 201010. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked, do not correspond and continue to process the return.

# Line 1b - Form 7207

3.11.14.39.2 (01-01-2026) Line 1b - Form 7207 Form 7207, Advanced Manufacturing Production Credit, is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 1b, columns (b), (f)*, (g)**, (h), and (j)*** are valid and transcribed for Tax Period 202301 and later. *(Col. (g) for 2023) **(Col. (j) for 2023) ***(Col. (i) for 2023) If an amount is present on Form 3800, Part III, Line 1b, Column (g)* or Form 1041, Schedule G, Line 2b for Form 7207, do the following: *(Col. (j) for 2023) (Col. (c) for 2022) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 7207 is not attached, Correspond. Exception: For TY 2022 - If Form 3800, Part III, Box C, D, or G are checked and Line 1b, Column (b) has an EIN, do not correspond and continue to process the return. Exception: For Tax Year 2023 - If Form 3800, Part III, Line 1b, Column (d) has an EIN, do not correspond and continue to process the return. Exception: For Tax Year 2024 and later - If Form 3800, Part III, Line 1b, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1c - Form 6765

3.11.14.39.3 (01-01-2025) Line 1c - Form 6765 Form 6765, Credit for Increasing Research Activities, is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 1c, Column (g)* or Form 1041, Schedule G, Line 2b** for Form 6765, do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part 1, Line 1c for 2010 and prior) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 6765 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1c, Column (b) has an EIN, do not correspond and continue to process the return. Exception: For Tax Year 2023 - If Form 3800, Part III, Line 1c, Column (d) has an EIN, do not correspond and continue to process the return. Exception: For Tax Year 2024 and later - If Form 3800, Part III, Line 1c, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1d - Form 3468, Part III

3.11.14.39.4 (01-01-2025) Line 1d - Form 3468, Part III Form 3468, Investment Credit, is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 1d, columns (b), (f)*, (g)**, (h), and (j)*** are valid and transcribed for Tax Year 2023 and later. *(Col. (g) for 2023) **(Col. (j) for 2023) ***(Col. (i) for 2023) If an amount is present on Form 3800, Part III, Line 1d, Column (g)* or Form 1041, Schedule G, Line 2b for Form 3468, Do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part II, Line 29a for 2008 - 2010) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 3468 is not attached, Correspond.

# Line 1e - Form 8826

3.11.14.39.5 (01-01-2025) Line 1e - Form 8826 Form 8826, Disabled Access Credit, is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 1e, Column (g)* or Form 1041, Schedule G, Line 2b** for Form 8826, do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part I, Line 1e for 2007 - 2010) (Part I, Line 1g for 2005 - 2006) (Part I, Line 1h for 2000 - 2004) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8826 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1e, Column (b) has an EIN, do not correspond and continue to process the return. Exception: For Tax Year 2023 - If Form 3800, Part III, Line 1e, Column (d) has an EIN, do not correspond and continue to process the return. Exception: For Tax Year 2024 and later - If Form 3800, Part III, Line 1e, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1f - Form 8835, Part II

3.11.14.39.6 (01-01-2026) Line 1f - Form 8835, Part II Form 8835, Renewable Electricity Production Credit is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 1f, columns (b), (f)*, and (g)** are valid and transcribed for Tax Period 202301 and later. *(Col. (g) for 2023) **(Col. (j) for 2023) If an amount is present on Form 3800, Part III, Line 1f, Column (g)* or Line 4e or Form 1041, Schedule G, Line 2b** for Form 8835 Do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part II, Line 1f for 2010) (Part I, Line 1f for 2007 - 2009) (Part I, Line 1h for 2005 - 2006) (Part I, Line 1i for 2000 - 2004) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8835 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1f, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1f, Column (d) has an EIN, do not correspond and continue to process the return. Exception: For Tax Year 2024 and later - If Form 3800, Part III, Line 1f, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1g - Form 7210

3.11.14.39.7 (01-01-2025) Line 1g - Form 7210 Form 7210, Clean Hydrogen Production Credit is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 1g, columns (b), (f)*, (g)**, (h), and (j)*** are valid and transcribed for Tax Period 202301 and later. *(Col. (g) for 2023) **(Col. (j) for 2023) ***(Col. (i) for 2023) If an amount is present Form 3800, Part III, Line 1g, Column (g)* or Form 1041, Schedule G, Line 2b** for Form 7210: *(Col. (g) for 2023) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 7210 is not attached, Correspond. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1g, Column (d) has an EIN, do not correspond and continue to process the return. Exception: For Tax Year 2024 and later - If Form 3800, Part III, Line 1g, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1h - Form 8820

3.11.14.39.8 (01-01-2025) Line 1h - Form 8820 Form 8820, Orphan Drug Credit is required to be filed with the return when claiming Form 8820 credit. If an amount is present on Form 3800, Part III, Line 1h, Column (g)* or Form 1041, Schedule G, Line 2b** for Form 8820, do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part I, Line 1h for 2007 - 2010) (Part I, Line 1k for 2005 - 2006) (Part I, Line 1l for 2000 - 2004) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8820 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1h, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1h, Column (d) has an EIN, do not correspond and continue to process the return. Exception: For Tax Year 2024 and later - If Form 3800, Part III, Line 1h, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1i - Form 8874

3.11.14.39.9 (01-01-2025) Line 1i - Form 8874 Form 8874, New Markets Credit, is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 1i, Column (g)* or Form 1041, Schedule G, Line 2b** for Form 8874, do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2012) (Part I, Line 1i for - 2007 - 2010) (Part I, Line 1m for - 2001 - 2006) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8874 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1i, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1i, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1i, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1j - Form 8881, Part I

3.11.14.39.10 (01-01-2025) Line 1j - Form 8881, Part I Form 8881, Credit for Small Employer Pension Plan Startup Costs, Auto-Enrollment, and Military Spouse Participation is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 1j, Column (g)*, or Form 1041, Schedule G, Line 2b** for Form 8881, Part I, do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part I, Line 1j for 2007 - 2010) (Part I, Line 1m for 2005 - 2006) (Part I, Line 1n for 2003 - 2004) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8881 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1j, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 and later - If Form 3800, Part III, Line 1j, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 and later - If Form 3800, Part III, Line 1j, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1k - Form 8882

3.11.14.39.11 (01-01-2025) Line 1k - Form 8882 Form 8882, Credit for Employer Provided Child Care Facilities and Services is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 1k, Column (g)* or Form 1041, Schedule G, Line 2b** for Form 8882, do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part I, Line 1k for 2007 - 2010) (Part I, Line 1n for 2005 - 2006) (Part I, Line 1o for 2002 - 2004) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8882 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1k, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1k, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1k, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1l - Form 8864 (diesel)

3.11.14.39.12 (01-01-2025) Line 1l - Form 8864 (diesel) Form 8864, Biodiesel, Renewable Diesel, or Sustainable Aviation Fuels Credit is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 1l, Column (g)* or Form 1041, Schedule G, Line 2b** for Form 8864, do the following: *(Co. (j) for 2023) (Col. (c) for 2011 - 2022) (Part I, Line 1l for 2008 - 2010) (Part I, Line 1m for 2007) (Part I, Line 1p for 2004 - 2006) ***(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8864 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1l, Column (b) has an EIN, do not correspond and continue to process the return.

# Line 1m - Form 8896

3.11.14.39.13 (01-01-2025) Line 1m - Form 8896 Form 8896, Low Sulfur Diesel Fuel Production Credit is required to be attached to the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 1m, Column (g)* or Form 1041, Schedule G, Line 2b** for Form 8896, do the following. *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part I, Line 1m for 2007) (Part I, Line 1n for 2007) (Part I, Line 1q for 2004 - 2006) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8896 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1m, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1m, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1m, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1n - Form 8906

3.11.14.39.14 (01-01-2025) Line 1n - Form 8906 Form 8906, Distilled Spirits Credit is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 1n, Column (g)** or Form 1041, Schedule G, Line 2b** for Form 8906, do the following: *(Col.(j) for 2023) (Col. (c) for 2011 - 2022) (Part I, Line 1n for 2008 - 2010) (Part I, Line 1o for 2007)(Part I, Line 1r for 2005 - 2006) ***(Line 2c for 2009 and prior). If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8906 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1n, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1n, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1n, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1o - Form 3468, Part IV

3.11.14.39.15 (01-01-2025) Line 1o - Form 3468, Part IV Form 3468, Investment Credit is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 1o, columns (b), (g)*, (h), and (j)** are valid for Tax Year 2023 and later. *(Col. (j) for 2023) **(Col. (i) for 2023) If an amount is present on Form 3800, Part III, Line 1o, Column (g)* or Form 1041, Schedule G, Line 2b for Form 3468, Part IV: *(Col. (j) for 2023) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 3468 is not attached, Correspond.

# Line 1p - Form 8908

3.11.14.39.16 (01-01-2025) Line 1p - Form 8908 Form 8908, Energy Efficient Home Credit is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 1p, Column (g)* or Form 1041, Schedule G, Line 2b** for Form 8908, do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part I, Line 1p for 2008 - 2010) (Part I, Line 1q for 2007) (Part I, Line 1t for 2005 - 2006) **(Line 2c for 2009 and prior). If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8908 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1p, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1p, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1p, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1q - Form 7218, Part II

3.11.14.39.17 (01-01-2026) Line 1q - Form 7218, Part II Form 7218, Clean Fuel Production Credit is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 1q, columns (b), (f), (g), (h), and (j) are valid for Tax Year 2024 and later. If an amount is present on Form 3800, Part III, Line 1q, Column (g)* or Form 1041, Schedule G, Line 2b for Form 7218, do the following: *(Line 1p, Co. (j) reserved for 2023) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 7218 is not attached, Correspond. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1q, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1r - Form 8910 (2005 - 2023)

3.11.14.39.18 (01-01-2026) Line 1r - Form 8910 (2005 - 2023) Form 8910, Alternative Motor Vehicle Credit is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 1r, is valid for Tax Year 2023 and prior. When an amount is present on Form 3800, Part III, Line 1r, Column (g)* or Form 1041, Schedule G, Line 2b** for Form 8910, do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part I, Line 1r for 2008 - 2010) (Part I, Line 1s for 2007) (Part I, Line 1v for 2006) (Part I, Line 1u for 2005) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8910 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1r, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 and later - If Form 3800, Part III, Line 1r, Column (d) has an EIN, do not correspond and continue to process the return. When Form 8910 is attached, check for invalid in-service dates: If Then Form 8910, Part I, Line 2, Column (a), (b), or (c) has an in-service date earlier than 02/18/2009, Edit CCC "C" and circle the invalid-in service dates. See IRM 3.11.14.8.2 (2), CCC "C" - Invalid Vehicle Year or Service Date.

# Line 1s - Form 8911, Part I

3.11.14.39.19 (01-01-2025) Line 1s - Form 8911, Part I Form 8911, Alternative Fuel Vehicle Refueling Property Credit is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 1s, columns (b), (f)*, (g)**, (h), and (j)*** are valid for Tax year 2023 and later. *(Col. (g) for 2023) **(Col. (j) for 2023) ***(Col. (i) for 2023) When an amount is present on Form 3800, Part III, Line 1s, Column (g)* or Form 1041, Schedule G, Line 2b** for Form 8911, Part II, do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part I, Line 1s for 2008 - 2010) (Part I, Line 1t for 2007) (Part I, Line 1w for 2006) (Line 1v for 2005) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8911 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1s, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1s, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1s, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1t - Form 8830

3.11.14.39.20 (01-01-2025) Line 1t - Form 8830 Form 8830, Enhanced Oil Recovery Credit is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 1t, Column (g)* or Form 1041, Schedule G Line 2b for Form 8830 credit, do the following: *(Col. (j) for 2023) (Col. (c) for 2017 - 2022) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8830 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1t, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1t, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1t, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1u - Form 7213, Part II

3.11.14.39.21 (01-01-2026) Line 1u - Form 7213, Part II Form 7213, Nuclear Power Production Credit is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 1u, columns (b), (f)*, (g)**, (h), and (j)*** are valid for Tax Year 2023 and later. * (Col. (g) for 2023) **(Col. (j) for 2023) ***(Col. (i) for 2023) If an amount is present on Form 3800, Part IIII, Line 1u, Column (g)* or Form 1041, Schedule G, Line 2b for Form 7213, Part II: *(Col. (j) for 2023) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 7213 is not attached, Correspond. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1u, Column (d) has an EIN, do not correspond and continue to process the return. Exception: For Tax Year 2024 and later - If Form 3800, Part III, Line 1u, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1v - Form 3468, Part V

3.11.14.39.22 (01-01-2026) Line 1v - Form 3468, Part V Form 3468, Investment Credit is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 1v, columns (b), (f), (g), (h), and (j) are transcribed for 2024 and later. If an amount is present on Form 3800, Part III, Line 1v, Column (g) or Form 1041, Schedule G, Line 2b for Form 3468, Part V: If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 3468 is not attached, Correspond. Exception: For Tax Year 2024 and later - If Form 3800, Part III, Line 1v, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1w - Form 8932

3.11.14.39.23 (01-01-2025) Line 1w - Form 8932 Form 8932, Credit for Employer Differential Wage Payments is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 1w, Column (g)* or Form 1041, Schedule G, Line 2b** for Form 8932 do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part I, Line 1w for 2008 - 2010)) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8932 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1w, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1w, Column (d) has an EIN, do not correspond and continue to process the return. Exception: For Tax Year 2024 and later - If Form 3800, Part III, Line 1w, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1x - Form 8933

3.11.14.39.24 (01-01-2025) Line 1x - Form 8933 Form 8933, Carbon Oxide Sequestration Credit is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 1x, columns (b), (f)*, (g)**, (h), and (j)*** are valid and transcribed for tax year 2023 and later. *(Col (g) for 2023) **(Col (j) for 2023) ***(Col (i) for 2023) If an amount is present on Form 3800, Part III, Line 1x, Column (g)* or Form 1041, Schedule G, Line 2b** for Form 8933: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part I, Line 1x for 2008 - 2010) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8933 is not attached, Correspond for missing Form 8933. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1x, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1x, Column (d) has an EIN, do not correspond and continue to process the return. Exception: For Tax Year 2024 and later - If Form 3800, Part III, Line 1x, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1y - Form 8936, Part II

3.11.14.39.25 (01-01-2026) Line 1y - Form 8936, Part II Form 8936, Clean Vehicle Credits is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 1y, Column (g)* or Form 1041, Schedule G, Line 2b** has an entry for Form 8936, Part II: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part I, Line 1y for 2009 - 2010) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8936 is not attached, Correspond for missing Form 8936. See IRM 3.11.14.8.2 (2), CCC "C" - Invalid Vehicle Year or Service Date. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1y, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1y, Column (d) has an EIN, do not correspond and continue to process the return. Exception: For Tax Year 2024 and later - If Form 3800, Part III, Line 1y, Column (c) has an EIN, do not correspond and continue to process the return. For Tax Year 2023 and later - Schedule A (Form 8936) must be filed with the return. Check Schedule A (Form 8936) for invalid vehicle years and invalid in-service dates: Note: A invalid vehicle year or an invalid in-service date is when the year is not equal to the tax year, or the return filed. If Then Schedule A (Form 8936), Part I, Line 1a has a invalid vehicle year, Edit CCC "C" and circle the invalid vehicle year(s) and/or the invalid in-service date(s). Schedule A (Form 8936), Part I, Line 3, has an invalid in-service date, Edit CCC "C" and circle the invalid vehicle year's and/or the invalid in-service dates. For Tax Year 2011 - 2022 - If Form 8936 is attached, check for invalid vehicle years and invalid in-service dates: Note: A invalid vehicle year or an invalid in-service date is when the year is not equal to the tax year, or the return filed. If Then Form 8936, Part I, Line 1, Column (a) or, (b) has a invalid vehicle year, Edit CCC "C" and circle the invalid vehicle year(s) and/or the invalid in-service date(s). Form 8936, Part I, Line, Column (a) or (b) has an invalid in-service date, Edit CCC "C" and circle the invalid vehicle year's and/or the invalid in-service dates. For Tax Year 2010 and 2009 - If Form 8936 is attached, check for invalid vehicle years and invalid in-service dates: Note: A invalid vehicle year or an invalid in-service date is when the year is not equal to the tax year, or the return filed. If Then Form 8936, Part I, Line 1, Column (a), (b), or (c) has a invalid vehicle year, Edit CCC "C" and circle the invalid vehicle year(s) and/or the invalid in-service date(s). Form 8936, Part I, Line, Column (a), (b), or (c) has an invalid in-service date, Edit CCC "C" and circle the invalid vehicle year's and/or the invalid in-service dates.

# Line 1z - Form 8834 (2009 - 2022)

3.11.14.39.26 (01-01-2026) Line 1z - Form 8834 (2009 - 2022) Form 8834, Qualified Electric Vehicle Credit is required to be filed with the return when claiming the credit. Line 1z is reserved for Tax Year 2023 and later. If an amount is present on Form 3800, Part III, Line 1z, Column (c)* or Form 1041, Schedule G, Line 2b** has an entry for Form 8834: (*Part I, 1z for 2009 - 2010) **(Line 2c for 2009 - 2010) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8834 is not attached, Do not correspond for missing Form 8834 and continue to process the return.

# Line 1aa - Form 8936, Part V

3.11.14.39.27 (01-01-2026) Line 1aa - Form 8936, Part V Form 8936, Clean Vehicle Credits is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 1aa, columns (b), (g)*, (h), and (j)** are valid for Tax Year 2023 and later. *(Col (j) for 2023) **(Col (i) for 2023) If an amount is present on Form 3800, Part III, Line 1aa, Column (g)* or Form 1041, Schedule G, Line 2b for Form 8936, Part V do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part I, Line 1aa for 2010) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8936 is not attached, Correspond. Form 8936 is attached, Allow the claim and continue editing the return. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1aa, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1aa, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 - If Form 3800, Part III, Line 1aa, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1bb - Form 8904

3.11.14.39.28 (01-01-2025) Line 1bb - Form 8904 Form 8904, Credit for Oil and Gas Production from Marginal Wells is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 1bb, Column (g)* or Form 1041, Schedule G, Line 2b for Form 8904: *(Col. (j) for 2023) (Col. (c) for 2011- 2022) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8904 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 1bb, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1bb, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 - If Form 3800, Part III, Line 1bb, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1cc - Form 7213, Part I

3.11.14.39.29 (01-01-2025) Line 1cc - Form 7213, Part I Form 7213, Nuclear Power Production Credit is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 1cc, column (g)* is valid and transcribed for Tax Year 2023 and later. *(Col (j) for 2023) If an amount is present on Form 3800, Part III, Line 1cc, column (g)* or Form 1041, Schedule G, Line 2b for Form 7213, Part I: *(Col. (j) for 2023) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 7213 is not attached, Correspond. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1cc, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1cc, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1dd - Form 8881, Part II

3.11.14.39.30 (01-01-2025) Line 1dd - Form 8881, Part II Form 8881, Credit for Small Employer Pension Plan Startup Cost, Auto-Enrollment, and Military Spouse Participation is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 1dd, column (g)* is valid and transcribed for Tax Year 2023 and later. *(Col (j) for 2023) If an amount is present on Form 3800, Part III, Line 1dd, Column (g)* or Form 1041, Schedule G, Line 2b for Form 8881, Part II: *(Col. (j) for 2023) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8881 is not attached, Correspond. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1dd, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1dd, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1ee - Form 8881, Part III

3.11.14.39.31 (01-01-2025) Line 1ee - Form 8881, Part III Form 8881, Credit for Small Employer Pension Plan Startup Cost, Auto-Enrollment, and Military Spouse Participation is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 1ee, column (g)* is valid and transcribed for Tax Year 2023 and later. *(Col (j) for 2023) If an amount is present on Form 3800, Part III, Line 1ee, Column (g)* or Form 1041, Schedule G, Line 2b for Form 8881, Part III: *(Col. (j) for 2023) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8881 is not attached, Correspond. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1ee, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1ee, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1ff - Form 8864, Line 8

3.11.14.39.32 (01-01-2025) Line 1ff - Form 8864, Line 8 Form 8864, Biodiesel, Renewable Diesel, or Sustainable Aviation Fuels Credit is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 1ff, column (g)* is valid and transcribed for Tax Year 2023 and later. *(Col (j) for 2023) If an amount is present on Form 3800, Part III, Line 1ff, Column (g)* or Form 1041, Schedule G, Line 2b for Form 8864, Line 8: *(Col. (j) for 2023) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8864 is not attached, Correspond. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1ff, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1ff, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1gg - Form 7211, Part II

3.11.14.39.33 (01-01-2026) Line 1gg - Form 7211, Part II Form 7211, Clean Electricity Production Credit is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 1gg, Columns (b), (f), (g), (h), and (j) are valid for Tax Year 2024 and later. If an amount is present on Form 3800, Part III, Line 1gg, Column (g) or Form 1041, Schedule G, Line 2b for Form 7211, Part II: If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 7211 is not attached, Correspond. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1gg, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 1zz - Other Credits

3.11.14.39.34 (01-01-2026) Line 1zz - Other Credits Line 1zz is used to report other credits with no line designation on Form 3800. For Tax year 2022 and prior - If the following do not have a line designation on Form 3800 Part III, edit the credit amounts to Line 1zz, Form 3800 Part III: General credits from an electing large partnership, Low-Income Housing (carryforward only), Trans-Alaska pipeline liability fund credit, Employee Retention (Form 5884-A), Credit for employers affected by Hurricane Katrina, Rita, or Wilma (Form 5884-A, Section A only), Hurricane Katrina housing credit (Form 5884-A, Section A only), Credit for affected Midwestern disaster area employers (Form 5884-A, Section A only), Employer housing credit (Form 5884-A, Section B only), New hire retention credit (Form 5884-B) (2011 Tax Year only), Nonconventional Source Fuel (Form 8907), Energy Efficient Appliance (Form 8909), Mine Team Training Credit (Form 8923), Agricultural Chemicals Security (Form 8931), Qualified Electric Vehicle Credit (Form 8834), Indian Employment (Form 8845), Credit for Contributions to Selected Community Development Corporations (Form 8847), Welfare-to-work credit (Form 8861), New York Liberty Zone business employee credit (Form 8884), Therapeutic drug credit (Form 8942), Form 3468 (for years prior to 2008 for the rehabilitation credit) (for tax years beginning before October 4, 2008, for the energy credit,) Form 5884 for years prior to 2007, Form 6478 for years prior to 2005, Form 8846 for years prior to 2007, or Form 8900 for years prior to 2008. If any of the credits listed in (2) above is present on Line 1zz, Form 3800, do the following: If And Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form listed above is not attached, or A statement identifying the credit and the associated amount is not attached, Correspond. Form for the credit claimed or a statement identifying the credit and the associated credit amount attached, Allow the claim and continue editing the return. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line for credit form on Form 3800 Part III, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 1zz, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 1zz, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 3 - Form 8844

3.11.14.39.35 (01-01-2025) Line 3 - Form 8844 Form 8844, Empowerment Zone Employment Credit is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Line 3, Column (g)* or Form 1041, Schedule G, Line 2b**, do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part II, Line 26 for 2011 - 2023) (Part II, Line 25 for 2010-2008) ** (Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8844 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 3, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 3, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 3, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 4a - Form 3468, Part VI

3.11.14.39.36 (01-01-2026) Line 4a - Form 3468, Part VI Form 3468, Investment Credit is required to be filed with the return when claiming the credit. Form 3800, Part III, Line 4a, columns (b), (f)*, (g)**, (h), and (j)*** are valid for Tax Year 2023 and later. *(Col. (g) for 2023) **(Col. (j) for 2023) ***(Col. (i) for 2023) If an amount is present on Form 3800, Part III, Line 4a Column (g)* or Form 1041, Schedule G, Line 2b** for Form 3468 (Part VI), do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Line 29a for 2010-2008) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 3468 is not attached, Correspond. Exception: Tax Year 2023 - If Form 3800, Part III, Line 4a, Column (c) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 4a, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 4b - Form 5884

3.11.14.39.37 (01-01-2025) Line 4b - Form 5884 Form 5884, Work Opportunity Credit is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 4b, Column (g)* or Form 1041, Schedule G, Line 2b** for Form 5884, do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part II, Line 29b for 2008 - 2010) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 5884 is not attached to a 200712 or later return, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 4b, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 4b, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 4b, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 4c - Form 6478

3.11.14.39.38 (01-01-2025) Line 4c - Form 6478 Form 6478, Biofuel Producer Credit is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 4c, Column (g)* or Form 1041, Schedule G, Line 2b** for Form 6478, do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part II, Line 29c for 2008 - 2010) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 6478 is not attached, Correspond. These instructions apply to 2009 tax year only, including fiscal year (200901 through 201011). Form 6478 has a significant amount on Line 5*, Column (c) or Line 8**, *(Line 5(c) or Line 7 for 2009, Line 7(c) or Line 9 for 2008, not applicable for other prior year revisions). Reminder: Do not edit Action Code "343" for Tax Period 201012. Edit action code "343" . Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 4c, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 4c, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 4c, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 4d - Form 8586

3.11.14.39.39 (01-01-2026) Line 4d - Form 8586 Form 8586, Low-Income Housing Credit is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 4d, Column (g)*, or Form 1041, Schedule G, Line 2b** for Form 8586, do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part II, Line 29d for 2008 - 2010) **(Line 2c for 2009 and prior) If Then The credit is≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8586 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 4d, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 4d, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 4d, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 4e - Form 8835, Part II

3.11.14.39.40 (01-01-2026) Line 4e - Form 8835, Part II Form 8835, Renewable Electricity Production Credit is required to be filed with the return when claiming the credit. Form 3800, Part II, Line 4e, columns (b), (f)*, (g)**, (h), and (j)*** are valid and transcribed for Tax Year 2023 and later. *(Col. (g) for 2023) **(Col. (j) for 2023) ***(Col. (i) for 2023) If an amount is present on Form 3800, Part III, Line 4e, Column (g)*, or Form 1041, or Schedule G, Line 2b** for Form 8835, Part II, do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part II, Line 29e for 2008 - 2010) **(Line 2c for 2009 and prior) If Then The credit is≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8835 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 4e, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year - If Form 3800, Part III, Line 4e, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 4e, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 4f - Form 8846

3.11.14.39.41 (01-01-2025) Line 4f - Form 8846 Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips is required to be filed with 1041 tax returns when claiming the credit. If an amount is present on Form 3800, Part III, Line 4f, Column (g)* or Form 1041, Schedule G, Line 2b** for Form 8846, do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part II, Line 29f for 2008 - 2010) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8846 is not attached, Correspond. Exception: Tax Year 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 4f, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 4f, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 4f, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 4g - Form 8900

3.11.14.39.42 (01-01-2025) Line 4g - Form 8900 Form 8900, Qualified Railroad Track Maintenance Credit is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 4g, Column (j)*, or Form 1041, Schedule G, Line 2b** for Form 8900, do the following: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part II, Line 29g for 2008 - 2010) (Part I, Line 1l for 2007) (Part I, Line 1o for 2005 - 2006) **(Line 2c for 2009 and prior) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8900 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 4g, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 4g, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 4g, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 4h - Form 8941

3.11.14.39.43 (01-01-2025) Line 4h - Form 8941 Form 8941, Credit for Small Employer Health Insurance Premiums is required to be filed with the return when claiming the credit. If any amount is present on Form 3800, Part III, Line 4h, Column (g)*, for Form 8941 process as follows: *(Col. (j) for 2023) (Col. (c) for 2011 - 2022) (Part II, Line 29h for 2010) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8941 is not attached, Correspond. Form 8941 is present, Place in sequence order if significant entries are present. IRM 3.11.14.3.3, Sequence - Form 1041. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 4h, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 4h, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 4h, Column (c) has an EIN, do not correspond and continue to process the return. To decide if correspondence is needed for the SHOP (Small Business Health Options Program) check box (Line A, Form 8941) for TY 2014 and later, follow the table below: If Then Line A, only"Yes" box or"No" box is checked, No correspondence needed. No line A, boxes are checked, Correspond using the 177C letter. Line A, Both the "Yes" box and the "No" box are checked, Correspond using the 177C letter. To decide if correspondence is needed for the Credit Period Limitation check box (Line C, Form 8941) for TY 2016 and later, follow the table below: If Then Line C, only"Yes" box or"No" box is checked, No correspondence needed. No line C, boxes are checked, Correspond using 177C letter. Line C, Both the "Yes" box and the "No" box are checked, Correspond using 177C letter.

# Line 4i - Form 6765 ESB Credit

3.11.14.39.44 (01-01-2025) Line 4i - Form 6765 ESB Credit Form 6765, Credit for Increasing Research Activities is required to be filed with return when claiming the credit. If an amount is present on Form 3800, Part III, Line 4i, Column (g)* or Form 1041, Schedule G, Line 2b for Form 6765, do the following: *(Col. (j) for 2023) (Col. (c) for 2016 - 2022) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 6765 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 4i, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 4i, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 4i, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 4j - Form 8994

3.11.14.39.45 (01-01-2026) Line 4j - Form 8994 Form 8994, Employer Credit for Paid Family and Medical Leave is required to be filed with return when claiming the credit. If an amount is present on Form 3800, Part III, Line 4j, Column (g)* or Form 1041, Schedule G, Line 2b for Form 8994, do the following: *(Col. (j) for 2023) (Col. (c) for 2018 - 2022) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡, and Form 8994 is not attached, Correspond. Exception: For TY 2022 and prior - If Form 3800, Part III, Box C, D, or G are checked and Line 4j, Column (b) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2023 - If Form 3800, Part III, Line 4j, Column (d) has an EIN, do not correspond and continue to process the return. Exception: Tax Year 2024 and later - If Form 3800, Part III, Line 4j, Column (c) has an EIN, do not correspond and continue to process the return.

# Line 4k - Form 3468, Part VII

3.11.14.39.46 (01-01-2026) Line 4k - Form 3468, Part VII Form 3468, Investment Credit is required to be filed with the return when claiming the credit. If an amount is present on Form 3800, Part III, Line 4k, Column (g)* or Form 1041, Schedule G, Line 2b for Form 3468 Part VII: *(Col. (j) for 2023) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 3468 is not attached, Correspond.

# Line 4z - Other Specified Credits

3.11.14.39.47 (01-01-2026) Line 4z - Other Specified Credits If an amount is present on Form 3800, Part III, Line 4z, Column (g)* or Form 1041, Schedule G, Line 2b for Form 3800: *(Col. (j) for 2023) If Then The credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and no support for entry is attached, Correspond.

# Column (b), Part V (Form 3800) - Elective Payment or Transfer Registration Number

3.11.14.39.48 (01-01-2026) Column (b), Part V (Form 3800) - Elective Payment or Transfer Registration Number Tax Year 2023 and later - If Column (b), Form 3800 Part V has significant data, edit a "1" in the bottom right margin of Form 3800, Part III, Page 4.

# Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF)

3.11.14.40 (01-01-2025) Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) is attached to Form 1041. Valid for Tax Year 2019 and later. If not valid for Tax Year of the return, edit the form for non-transcription. If any entry in column (d) is not code "A" through "H" or "J" through "G" , edit an "X" to the left of the entry. Place Form 8997 in sequence order if any entry in Part I, II, III, or IV is other than zero or blank. If multiple Form 8997 are attached, use the first Form 8997 followed by the other Form 8997 attached when sequencing.

# Form 8283, Noncash Charitable Contributions

3.11.14.41 (01-01-2026) Form 8283, Noncash Charitable Contributions Form 8283, Noncash Charitable Contributions is valid for transcription for Tax Periods ending 202501 and later when data is present on any of the following lines. Note: See IRM 3.11.14.3.3, Sequence of Return - Form 1041, for the sequence order of Form 8283. Line Line Descriptions 2 Information on Donated Property Type Check boxes 3A(c) Donated Property Appraised Fair Market Value 3A(d) Donated Property Date Acquired by Donor 3A(f) Donated Property Donor's Cost or Adjusted Basis Part IV Appraiser Signature Indicator Part IV Appraiser Identifying Number Part V Qualified Organization Property Received Date Part V Charitable Organization Employer Identification Number Part V Charitable Organization Authorized Signature Indicator Part V, Lower right corner pg. 2. Multiple Form 8283 Attached Tax Period ending 201812 and prior - Form 8283 is not valid for transcription. Do not put Form 8283 in sequence order. Form 8283, Noncash Charitable Contributions is required to be attached to the return if a deduction over ≡ ≡ ≡ is claimed on Line 12b Schedule K. Correspond if Form 8283 is not attached. If multiple Form 8283 is attached, edit a 1 on page 2 of Form 8283, Part V, lower right corner.

# Form 8960, Net Investment Income Tax

3.11.14.42 (01-01-2023) Form 8960, Net Investment Income Tax Form 8960, Net Investment Income Tax must be attached to Form 1041 if any significant entry is present on Line 5, Schedule G, of Form 1041. Correspond if Form 8960 is missing. Place Form 8960 in sequence order if entries are not zero or blank. Only one Form 8960 is attached to a return, if there are multiples attached, use the one that matches the money amount on Schedule G, Line 5. If none match, use the first one. If there is an entry on Line 8 and no entries on Lines 1 through 7, use the following to edit the return: Line 1, Form 8960 comes from Line 1, Form 1041. Line 2, Form 8960 comes from Line 2a, Form 1041. Line 4a, Form 8960 comes from Line 5, Form 1041. Line 4c, Form 8960 is the total of Lines 4a and 4b. Line 5a, Form 8960 comes from the total of Lines 4 and 7, Form 1041. Line 5d, Form 8960 is the total of Lines 5a, 5b, and 5c. Note: If the entries do not add up, use Line 7, Form 8960 for the difference, so that the total equals amount on Line 8. The following are the only T-lines on Form 8960 that can have negative amounts: Line 4a Line 4b Line 5a Line 5b Line 5c Line 6 Line 7 Line 8 If any other T-lines show a negative entry, delete the entry. Caution: Do not delete any negative entry on Line 5, Schedule G, on the Form 1041. Make the Line 5 entry a positive amount. If there is an entry on Line 11 and no entries on Lines 9a through 10, double arrow the amount to Lines 10 and 11. If there is an entry on Line 20 and no entries on Lines 18a through 19c, double arrow the amount to Lines 19c and 20.

# Form 8936 (Schedule A), Clean Vehicle Credit Amount

3.11.14.43 (01-01-2024) Form 8936 (Schedule A), Clean Vehicle Credit Amount Sequence up to two Form 8936, Schedule A's, The following lines will be transcribed from the first two Form 8936, Schedule As attached. Part I, Line 2, Vehicle identification number (VIN). Part I, Line 3, Date Vehicle Placed in Service. Part II, Line 9, Tentative Credit Amount. Part II, Line 11, Multiply line 9 by line 1. Part IV, Line 17, Enter the smaller of line 15 or Line 16. Part V, Line 26, Enter the smaller of line 24 or line 2. If more than two Form 8936, Schedule As are attached, edit an indicator of "1" on the second Form 8936, Schedule A, in the bottom right margin.

# Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties

3.11.14.44 (01-01-2025) Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties is transcribed for Tax Period 202401 and later. If Form 4255 is attached to a return for a Tax Period 242401 and later, sequence the form in order. See IRM 3.11.14.3.3, Sequence - Form 1041. If the Tax Period is 202312 and prior, do not sequence the form and edit a slash through the Form 4255. If there is an amount of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on any of the transcribed lines and the form to support the line entry is missing, correspond for the missing form. If the Tax period is 202401 and later, take the following action: Line Form Action Part 1, Line 1a, col (s) Form 7207 Accept the entry. Part 1, Line 1a, col (t) Form 7207 Accept the entry. Part 1, Line 1b, col (s) Form 3468, Part III Accept the entry. Part 1, Line 1b, col (t) Form 3468, Part III Accept the entry. Part 1, Line 1c, col (s) Form 7210 Accept the entry. Part 1, Line 1c, col (t) Form 7210 Accept the entry. Part 1, Line 1d, col (s) Form 3468, Part IV Accept the entry. Part 1, Line 1d, col (t) Form 3468, Part IV Accept the entry. Part 1, Line 1e, col (s) Form 7218 Tax Period is 202412 and prior, edit "X" just left of the amount. Part 1, Line 1e, col (t) Form 7218 Tax Period is 202412 and prior, edit "X" just left of the amount. Part 1, Line 1f, col (s) Form 7213, Part II* Tax Period is 202412 and prior, edit "X" just left of the amount. Part 1, Line 1f, col (t) Form 7213, Part II Tax Period is 202412 and prior, edit asterisk (*) just left of the amount. Part 1, Line 1g, col (s) Form 3468, Part V. Tax Period is 202412 and prior, edit "X" just left of the amount. Part 1, Line 1g, col (t) Form 3468, Part V. Tax Period is 202412 and prior, edit "X" just left of the amount. Part 1, Line 1h, col (s) Form 8936, Part V Accept the entry. Part 1, Line 1h, col (t) Form 8936, Part V Accept the entry. Part 1, Line 1i, col (s) Form 7211 Tax Period is 202412 and prior, edit "X" left of Line 1f, col (s). Part 1, Line 1i, col (t) Form 7211 Tax Period is 202412 and prior, edit "X" just left of the amount. Part 1, Line 1j, col (s) Form 3468, Part VI. Accept the entry. Part 1, Line 1j, col (t) Form 3468, Part VI. Accept the entry. Part 1, Line 1k, col (s) Form 8835 Accept the entry. Part 1, Line 1k, col (t) Form 8835 Accept the entry. Part 1, Line 2a, col (s) Form 8933 Accept the entry. Part 1, Line 2a, col (t) Form 8933 Accept the entry. Part 1, Line 2b, col (s) Form 8911, Part I Accept the entry. Part 1, Line 2b, col (t) Form 8911, Part I Accept the entry.

# Decedent Returns - Form 1040, Form 1040-SR, Form 1040A, and Form 1040EZ

3.11.14.45 (01-01-2026) Decedent Returns - Form 1040, Form 1040-SR, Form 1040A, and Form 1040EZ This subsection has instructions for identifying and processing Form 1040, Form 1040-SR, Form 1040A, and Form 1040EZ Decedent returns. Note: Throughout this subsection any reference of "return" will be referring to Form 1040, Form 1040-SR, Form 1040A, or Form 1040EZ return . Form 1040 and Form 1040-SR are the only return forms to be filed as of Tax Year 2019. For Tax Year 2018 and prior, Form 1040A or Form 1040EZ can still be filed. If any of these forms are filed, continue with the process of the return according to the procedures in this subsection. If a return is filed for a deceased taxpayer (or two deceased taxpayers on a joint return) and the return covers a tax period after the one in which the taxpayer died, Form 1041 must be filed. When an IMF processing campus determines the return was filed in error and Form 1041 is required, IMF will forward the return to the BMF processing campus. Note: If the return was previously assigned a DLN at the IMF processing campus, the IMF site will void the DLN using Action Code 640 prior to shipping the return to the BMF site. The BMF processing campus will verify the return was filed for a deceased taxpayer. If there is an indication the return was filed for a deceased taxpayer Form 1310 attached or "Dec'd" , "Deceased" , Date of Death, etc., appears on the return or attachments, research IDRS for date of death. Note: If instructed to process return as an IMF return, follow local procedures for transshipping to the designated IMF processing site. Attach IDRS research and Form 13675 showing the reason for transshipping. Exception: If the receiving campus processes both IMF and BMF returns, they will process the return. If And Then The filing status box Single is checked, or one taxpayer is shown in the Entity of the return, Date of death is during or after the filing year, Process as an IMF return. The filing status box Single is checked, or one taxpayer is shown in the Entity of the return, Date of death is prior to the tax period beginning date Convert to Form 1041 or correspond for completed Form 1041 per criteria shown in (6) below. The filing status box Married filing joint return box is checked, or there are two taxpayers (not personal rep, exec, etc.) in the Entity area of the return, Note: Research both SSNs. Date of death for one of the taxpayers is during or after the filing year, and one taxpayer is still living, Process as an IMF return. The filing status box Married filing joint return box is checked, or there are two taxpayers (not personal rep, exec, etc.) in the Entity area of the return, Note: Research both SSNs. Dates of death for both taxpayers are during or after the filing year, Process as an IMF return. The filing status box Married filing joint return box is checked, or there are two taxpayers (not personal rep, exec, etc.) in the Entity area of the return, Note: Research both SSNs. Dates of death for both taxpayers are prior to the filing year, Convert to Form 1041 or correspond for completed Form 1041 per criteria shown in (6) below. The date of death is not on the return or found on IDRS, Correspond for the date of death. The return appears to be a detached bankruptcy return Refer to work leader If the decedent return meets any of the following criteria for converting to Form 1041, See IRM 3.11.14.45.2, Conversion Procedure for Decedent Returns: The return is for a single deceased taxpayer (or two deceased taxpayers) on a joint return and the return covers a tax period after the one in which the taxpayer(s) died. Form 1040, line 9, Total Income amount is under $600. Form 1040A, Line 15, Total Income amount is under $600. Form 1040EZ, Line 4, Adjusted gross Income is under $600. A dummied Form 1041 has a decedent return attached and there is an indication of no reply to a correspondence request.

# Correspondence Procedures for Decedent Returns

3.11.14.45.1 (01-01-2025) Correspondence Procedures for Decedent Returns Correspond with the taxpayer for a completed Form 1041 when the return meets one of the following conditions: Form 1040 and 1040-SR, Line 9 TY 2020 and later (Line 7a TY2019, Line 10 TY2018, and Line 22 TY2017 and prior), Total Income amount is $600 or more. Form 1040A, Line 15, Total Income amount is $600 or more. Form 1040EZ, Line 4, Adjusted gross Income is $600 or more. Any unprocessable conditions exist that require correspondence with the taxpayer, i.e., the return is not signed, etc., Exception: If there is an indication of no reply to a correspondence request for a completed Form 1041, convert the return to Form 1041. See IRM 3.11.14.45.2, Conversion Procedure for Decedent Returns. Caution: If there is evidence of previous correspondence with the taxpayer, the second correspondence must have a paragraph of apology for any inconvenience. Research the return to see if any of the following conditions exist: If Then An EIN is present on the return, its attachments, or Form 1310, Research IDRS for TC 150 using MFT "05" : TC 150 not found, correspond. TC 150 found, reassociate the return with the posted Form 1041. The EIN is missing, illegible or incomplete and cannot be perfected from attachments, Research the EIN following local procedures: If EIN is found, edit to the correct location. If EIN has not been assigned: Attach a Blank Form 1041 to the front of the return. Delete page 1 of the return. Route to Entity Control using local procedures, using Form 13934, Entity Document/C&E Merge Transmittal, for EIN assignment. All Form 1041 prepared for correspondence must have a: Received Date - The absence of a Received Date is an indication of a timely filed return (most are due April 15, 2025). See IRM 3.11.14.45.2, Conversion Procedure for Decedent Returns. Tax Period - If the Tax Period on the return is other than Current Processing year, edit the Tax Period (in YYMM format) to the right of preprinted calendar year on Form 1041. EIN - Edit the EIN from the return to the EIN location of Form 1041. Name Control - Edit the first four letters of the decedent's last name as the Name Control. See Document 7071, Name Control Job Aid for Individual Master File (IMF) Taxpayers, for proper determination of the Name Control. Address - Edit the address as follows: If Then A Form 1310 or Court Certificate is attached, Edit the address found in the caption area(s) to the correct location on Form 1041. No Form 1310 or Court Certificate is attached, Edit the address from the return to the correct location on Form 1041. See IRM 3.11.14.14.5, Entity Perfection - Domestic Addresses, for general editing instructions. If the EIN is still missing, illegible or incomplete and cannot be perfected from attachments, attach letter 3801C to Form 1041 and edit Action Code 211. Note: Do not edit Form 1040/A/EZ line entries to Form 1041.

# Conversion Procedure for Decedent Returns

3.11.14.45.2 (01-01-2026) Conversion Procedure for Decedent Returns Convert the return to Form 1041 when all the following conditions exist: The return is for a single deceased taxpayer (or two deceased taxpayers) on a joint return and the return covers a tax period after the one in which the taxpayer(s) died. The amount is under $600 for: Form 1040, Line 9, (Line 7a TY2019, Line 10 TY2018 and Line 22 TY2017 and prior), Total Income or Form 1040A, Line 15, Total Income, or Form 1040EZ, Line 4, Adjusted gross income. There are no unprocessable conditions present. See IRM 3.11.14.6, Unprocessable Conditions and Correspondence Action. Exception: If there is an indication of "no reply" to a correspondence request for a completed Form 1041, convert the return to Form 1041. Convert the return to Form 1041 as follows: Note: Conversions differ from other instructions found in the Form 1041 IRM. Delete page 1 of the return and attach a blank Form 1041 to the front of the return. All returns must have a Received Date. The absence of a Received Date is an indication of a timely filed return received at an IMF campus. Caution: If a prior year return was cleared by statutes, then after converting return to a Form 1041, send converted Form 1041 package to Statutes to be cleared. Edit the received date. See IRM 3.11.14.11, Received Date, for more information. Reminder: If the due date for the return falls on a weekend or holiday, the next business day is the official due date. If Then There is no Received Date present on the return, The return was timely filed. Edit 041526 to Form 1041 as the Received Date. There is a single timely Received Date present on the return, Edit the Received Date from the return to Form 1041 as the Received Date. There is a single delinquent Received Date from a processing campus present on the return, The return was timely filed. Edit 041526 to Form 1041 as the Received Date. There is a single Received Date from a processing campus on the return, Edit the Received Date from the return to Form 1041 as the Received Date. There are multiple Received Dates present on the return, Edit the earliest IMF Received Date or the earliest, timely BMF Received Date from the return to Form 1041 as the Received Date. If all the Received Dates are delinquent, the return was timely filed, edit 041526 as the Received Date to Form 1041. Edit the Tax Period (in YYMM format) to the right of the preprinted Calendar Year on Form 1041, if the Tax Period on return is other than the Current Processing year. Edit Fiduciary code "1" (Decedent's Estate) in Box "A" . Edit the EIN as follows: If Then An EIN is present on the return, Edit to the correct location on Form 1041. An EIN is not present on the return, Route the converted Form 1041 to Entity Control for EIN assignment. Edit the first four letters of the decedent's last name as the Name Control. See Document 7071-A, Name Control Job Aid - For Use Outside of the Entity Area for proper determination of the Name Control. Edit the address as follows: If Then A Form 1310 or Court Certificate is attached, Edit the address found in the caption areas to the correct location on Form 1041. No Form 1310 or Court Certificate is attached, Edit the address from the Form 1040 to the correct location on Form 1041. See IRM 3.11.14.14.5, Entity Perfection -_ Domestic Addresses, for general editing instructions. Edit the date of death as the "Date Entity Created" in Section D. Note: Edit CCC "8" if Section D is within two years of the tax year ending date. See IRM 3.11.14.8.24, CCC "8" - Waiver of Estimated Tax Penalty. The procedures for Decedent Form 1041 conversions require that the Form 1041 IRM signature instructions be applied to the return signature area. Therefore, the signature instructions for Decedent Form 1041 Conversions differ from the instructions found in other sections of the Form 1041. See IRM 3.11.14.6.3, Correspondence. Check the return signature area to decide if all the Form 1041 signature requirements are met. See IRM 3.11.14.19, Signature: If Then Signature correspondence is required, Do not convert return. Correspond with the taxpayer for a completed Form 1041. See IRM 3.11.14.6.3, Correspondence. All signature criteria is met, Edit "See Attached" or "S/A" to the signature line of Form 1041. Transfer specific tax data from return to Form 1041 using the following instructions: Form 1040, See IRM 3.11.14.45.3, Transferring Tax Data for Decedent Return - Form 1040 to Form 1041. Forms 1040A, See IRM 3.11.14.45.4, Transferring Tax Data for Decedent Return - Form 1040A to Form 1041. Form 1040EZ, See IRM 3.11.14.45.5, Transferring Tax Data for Decedent Return - Form 1040EZ to Form 1041. Place the converted Form 1041 and any transcribable forms in sequence order. See IRM 3.11.14.3.3, Sequence - Form 1041. Do not detach Form 1040 and its schedules from Form 1041 when it is received attached to Form 1041 on a correspondence reply return.

# Transferring Tax Data for Decedent Return - Form 1040 to Form 1041

3.11.14.45.3 (01-01-2026) Transferring Tax Data for Decedent Return - Form 1040 to Form 1041 If there are no money amounts present on Form 1040 to convert to Form 1041, edit zeros on lines 9, 16, 18, 22, 23, 24, 26, 28, and 29. If Form 1040 has any line amounts that cannot be associated with a line on Form 1041, refer to your manager. The following table has instructions for transferring tax data from Form 1040, including Schedule A, Itemized Deductions, and Schedule D, Capital Gains and Losses, to Form 1041: Edit the amounts from Form 1040 to the applicable Income lines on Form 1041: Note: See prior year conversion charts found in job aid (Number 2530-002). Edit from Form 1040 2025 Line 2024 Line 2023 Line 2022 Line Edit to Form 1041, Line Taxable Interest 2b 2b 2b 2b 1 Ordinary Dividends 3b 3b 3b 3b 2a Qualified Dividends 3a 3a 3a 3a 2b (2) Total amounts from: Income IRA Distributions Pensions and Annuities Social Security Taxable Refunds Alimony Unemployment Total Other Income Total from: 1z 4b 5b 6b 1, Sch 1 2a, Sch 1 7, Sch 1 9, Sch 1 Total from: 1z 4b 5b 6b 1, Sch 1 2a, Sch 1 7, Sch 1 9, Sch 1 Total from: 1z 4b 5b 6b 1, Sch 1 2a, Sch 1 7, Sch 1 9, Sch 1 Total from: 1z 4b 5b 6b 1, Sch 1 2a, Sch 1 7, Sch 1 9, Sch 1 8 Business Income 3, Sch 1 3, Sch 1 3, Sch 1 3, Sch 1 3 Capital Gain 7a 7 7 7 4 Other Gains 4, Sch 1 4, Sch 1 4, Sch 1 4, Sch 1 7 Schedule E Income 5, Sch 1 5, Sch 1 5, Sch 1 5, Sch 1 5 Qualified Business Income Deduction 13 13 13 13 20 Farm Income 6, Sch 1 6, Sch 1 6, Sch 1 6, Sch 1 6 Other Adjustments 26, Sch 1 26, Sch 1 26, Sch 1 26, Sch 1 15a Alternative Minimum Tax 2, Sch 2 2, Sch 2 1, Sch 2 1, Sch 2 1c, Sch G Amount from Form 4255, Part I, Form 4255, line 3, column (q) Form 4255, Part I, line 3, column (q) Form 4255, Part I, line 3, column (q) N/A N/A 1d, Sch G Foreign Tax Credit 1, Sch 3 1, Sch 3 1, Sch 3 1, Sch 3 2a, Sch G General Business Credit 6a, Sch 3 6a, Sch 3 6a, Sch 3 6a, Sch 3 2b, Sch G Prior Year Minimum Tax 6b, Sch 3 6b. Sch 3 6b. Sch 3 6b. Sch 3 2c, Sch G Bond Credits 6k, Sch 3 6k. Sch 3 6k. Sch 3 6k. Sch 3 2d, Sch G Net Investment Income Tax 12, Sch 2 12, Sch 2 12, Sch 2 12, Sch 2 5, Sch G Amount from Form 4255, Part I, line 3, column (r) Form 4255, Part I, line 3, column (r) Form 4255, Part I, line 3, column (r) 17a, IRC, Sch 2 N/A 6a, Sch G Recapture Tax Form 8611 16, Sch 2 16, Sch 2 16, Sch 2 N/A 6b, Sch G Other Recapture Taxes: Low Income Housing Recapture "ICR" Total from: N/A 17a (Other than ICR), Sch 2 Total from: N/A 17a (Other than ICR), Sch 2 Total from: N/A 17a (Other than ICR), Sch 2 Total from: N/A 16, Sch 2 17a ICR, Sch 2 6c, Sch G Household Employment Taxes 9, Sch 2 9, Sch 2 9, Sch 2 9, Sch 2 7, Sch G Other Taxes Amounts From: Total Other Taxes Total from: 21, Sch 2 minus (-) 9, Sch 2 12, Sch 2 16, Sch 2 17a, Sch 2 Total from: 21, Sch 2 minus (-) 9, Sch 2 12, Sch 2 16, Sch 2 17a, Sch 2 Total from: 21, Sch 2 minus (-) 9, Sch 2 12, Sch 2 16, Sch 2 17a, Sch 2 Total from: 21, Sch 2 minus (-) 9, Sch 2 12, Sch 2 16, Sch 2 17a ICR, Sch 2 8, Sch G Total Tax 24 24 24 24 24 Net 965 Tax Liability Paid 20, Sch 2 20, Sch 2 20, Sch 2 20, Sch 2 25 Federal Income Tax Withheld 25d 25d 25d 25d 14, Sch G Estimated Tax Payments 26 26 26 26 10, Sch G Amount Paid With Extension 10, Sch 3 10, Sch 3 10, Sch 3 10, Sch 3 13, Sch G Net 965 Tax Liability 13d, Sch 3 13d, Sch 3 13d, Sch 3 13f, Sch 3 15, Sch G Form 2439 Payments 13a, Sch 3 13a, Sch 3 13a, Sch 3 13a, Sch 3 16, Sch G Form 4136 Payments 12, Sch 3 12, Sch 3 12, Sch 3 12, Sch 3 17, Sch G Elective Payment Election Amount from Form 3800 13c, Sch 3 13c, Sch 3 13c, Sch 3 N/A 18a, Sch G Qualified Sick Family Leave Before April 1, 2021 N/A N/A 13z, Sch 3 13b, Sch 3 18b, Sch G Qualified Sick Family Leave After March 31, 2021 N/A N/A 13z, Sch 3 13h, Sch 3 18b, Sch G Overpayment 34 34 34 34 29 Refund 35a 35a 35a 35a 30b Applied to Estimated Tax 36 36 36 36 30a Tax Due 37 37 37 37 28 Estimated Tax Penalty 38 38 38 38 27 Edit from Schedule A (Form 1040) 2019 and later Line 2018 2017 and prior Line Edit to Form 1041, Line Total Taxes Paid 7 7 9 11 Total Interest Paid 10 10 15 10 Total Gifts to Charity 14 14 19 13 Casualty and Theft Losses plus (Other Miscellaneous Deductions) 15 15 + 16 20 + 28 15a Total Job Expenses and Certain Miscellaneous Deductions 16 Not valid for TY 2018 27 15a Edit from Schedule D (Form 1040) Line Edit to Schedule D (Form 1041), Line Net Short-Term Capital Gain or Loss 7, Column (h) 17(2) Net Long-Term Capital Gain or Loss 15, Column (h) 18a (2) Unrecaptured Section 1250 Gain 19 18b (2) 28% Rate Gain or Loss 18 18c (2) After completing the conversion process, refer to IRM 3.11.14 for further coding and editing requirements. Review the newly converted Form 1041 for conditions that will require further editing. For example, CCC codes, Audit Codes, support for newly transcribed lines, and routing attachments. Place Forms and Schedules in sequence order. Reminder: If any conditions exist that require correspondence with the taxpayer to resolve, do not convert Form 1040. Correspond with the taxpayer for a completed Form 1041. For prior year returns, match the Form 1040 line descriptions to the same line descriptions on Form 1041.

# Transferring Tax Data for Decedent Return - Form 1040A to Form 1041

3.11.14.45.4 (01-01-2024) Transferring Tax Data for Decedent Return - Form 1040A to Form 1041 If there are no money amounts present on Form 1040A to convert to Form 1041, edit zeros on lines 9, 16, 18, 22, 23, 24, 26, 28, and 29. The following table has instructions for transferring tax data from Form 1040A to Form 1041. Edit from Form 1040A Line Edit to Form 1041, Line Taxable Interest 8a 1 Ordinary Dividends 9a 2a Qualified Dividends 9b 2b (2) Total the amounts from: Wages Capital Gain Distributions Taxable IRA Distributions Taxable Pensions and Annuities Unemployment Taxable Social Security Benefits Total amounts from: 7 10 11b 12b 13 14b 8 Total Tax 39 24 Federal Income Tax Withheld 40 14, Sch G Estimated Tax Payments 41 11, Sch G Overpayment 47 29 Refund 48a 30b Applied to Estimated Tax 49 30a Tax Due 50 28 Estimated Tax Penalty 51 27 After completing the conversion process, refer to the Form 1041 IRM 3.11.14 for further coding and editing requirements. Review the newly converted Form 1041 for conditions that will require further editing, for example, CCC codes, Audit Codes, support for newly transcribed lines, and routing attachments. Reminder: If any conditions exist that require correspondence with the taxpayer to resolve, do not convert Form 1040A. Correspond with the taxpayer for a completed Form 1041. For prior year returns, match the Form 1040A line descriptions to the same line descriptions on Form 1041.

# Transferring Tax Data for Decedent Return - Form 1040EZ to Form 1041

3.11.14.45.5 (01-01-2023) Transferring Tax Data for Decedent Return - Form 1040EZ to Form 1041 If there are no money amounts present on 1040EZ to convert to Form 1041, edit Zeros on lines 9, 16, 18, 22, 23, 24, 26, 28, and 29. The following table has instructions for transferring tax data from Form 1040A to Form 1041: Edit from Form 1040EZ Line Edit to Form 1041, Line Taxable Interest 2 1 Total the amounts from: Wages Unemployment Total amounts from: 1 3 8 Federal Income Tax Withheld 7 14, Sch G Tax 12 24 Refund 13a 30b Tax Due 14 28 Do not detach 1040EZ from Form 1041 when the 1040EZ is received attached to Form 1041 on a correspondence reply return. For prior year returns, match the 1040EZ line descriptions to the same line descriptions on Form 1041.

# Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts

3.11.14.46 (01-01-2025) Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts Form 1041-QFT was added to the Internal Revenue Code by the Taxpayer Relief Act of 1997 to permit certain trusts which previously filed Form 1041 as Grantor Trusts to elect Qualified Funeral Trust status. A composite Form 1041-QFT is a single return filed by a trustee that has some or all the QFTs of which they are a trustee. Statements can be attached in lieu of Schedule D. See IRM 3.11.14.47.1.1.4(4), Line 3 - Capital Gain (or Loss). The due date to file Form 1041-QFT or a composite return is April 15, 2025. A short year return is due to be filed by the 15th day of the fourth month following the close of the short year. See Exhibit 3.11.14-4, Due Date Charts. Form 1041-QFT are processed with Document Code 39, MFT 05, Tax Class 2. For a display of Form 1041-QFT transcription lines, see Exhibit 3.11.14-2, Form 1041-QFT Transcription Lines. If Form 3800, General Business Credit is attached for Tax Year 2023 and later returns, See IRM 3.11.14.39 Form 3800, General Business Credit and follow the procedures for editing of Form 3800.

# Part II, Tax Computation Section - Lines 1a - 20b (Form 1041-QFT)

3.11.14.46.1 (01-01-2024) Part II, Tax Computation Section - Lines 1a - 20b (Form 1041-QFT) This subsection has instructions for editing the Income, Deductions and Tax and Payments Sections in Part II of Form 1041-QFT. Edit all monetary amounts as dollars only. Exception: Tax amounts on Form 1041-QFT: Lines 11,12,13, 14, 15, 17, 18, 19, 21, 21a, and 21b are dollar and cents. Do not bracket any entry, unless editing or computing a negative amount. Perfect all illegible or misplaced entries (when possible) Delete misplaced entries and edit to the correct lines. If the correct line for the misplaced entry cannot be decided, move it to Line 4 Other Income.

# Income Section - Lines 1a - 5 (Form 1041-QFT)

3.11.14.46.1.1 (01-01-2022) Income Section - Lines 1a - 5 (Form 1041-QFT) This subsection has instructions for editing the Income Section in Part II of Form 1041-QFT.

# Line 1a - Interest Income (Form 1041-QFT)

3.11.14.46.1.1.1 (01-01-2016) Line 1a - Interest Income (Form 1041-QFT) Accept taxpayer's entry.

# Line 2a - Total Ordinary Dividends (Form 1041-QFT)

3.11.14.46.1.1.2 (01-01-2016) Line 2a - Total Ordinary Dividends (Form 1041-QFT) Accept taxpayer's entry.

# Line 2b Qualified Dividends Allocable to Estate or Trust (Form 1041-QFT)

3.11.14.46.1.1.3 (01-01-2016) Line 2b Qualified Dividends Allocable to Estate or Trust (Form 1041-QFT) Accept taxpayer's entry.

# Line 3 - Capital Gain (or Loss) (Form 1041-QFT)

3.11.14.46.1.1.4 (01-01-2025) Line 3 - Capital Gain (or Loss) (Form 1041-QFT) The total gain or loss from the sale or exchange of capital assets is reported on Line 3 (Part II) of Form 1041-QFT. Line 3 is verified with entries, if any, reported on Schedule D (Form 1041), Part III. Schedule D must be attached if an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 3 of Form 1041-QFT. Correspond if missing. Do not edit Line 3 if corresponding. Exception: Do not correspond on composite returns if Statements are attached in lieu of Schedule D. Indications of a composite return are an entry greater than "1" in Part I, Line 4, or a check mark in the box on Part II, Line 12. Only a Schedule D (Form 1041) is acceptable. Schedule D (Form 1041) cannot be substituted with a Schedule D from any other tax return i.e., Forms 1040, 1065, 1120, etc. For multiple Schedules D, see IRM 3.11.14.27, Schedule D (Form 1041) - Capital Gains and Losses. Form 8824, Like-Kind Exchanges, must be attached if Schedule D (Form 1041) or Form 4797 (Sales of Business Property) is attached to Form 1041-QFT, and the filer has notated "RELATED PARTY LIKE-KIND EXCHANGE" on Schedule D or Form 4797. Correspond for Form 8824 if missing. If And Then Form 8824 is attached with an entry greater than zero on Line 22, Schedule D is blank or missing, Correspond, regardless of the entry on Line 3 of Form 1041-QFT. Reminder: Edit CCC "1" if Form 8824 is attached. When comparing entries on Line 3 of Form 1041-QFT and Schedule D, Part III, ensure that Schedule D, Part III is complete. Dummy Schedule D, Page 2 if missing or blank: Exception: Do not dummy a Schedule D if corresponding for two or more other missing items or if tax period is prior to 2012. Instead, add the request for Schedule D in the correspondence to the filer. Don't edit Form 1041-QFT, Line 3 if corresponding for missing Schedule D. If Schedule D, Part III, Columns (1) and (2) are both blank And Then Line 17, Schedule D, Line 7 has an entry, Edit the amount from Line 7 to Line 17(2). Bracket if negative. Line 17, Schedule D, Line 7 is blank, but there are entries on Lines, 1a - 6, Column (f), Compute the total of Lines 1a - 6, Column (f) and edit to Line 17(2). Bracket if negative. Line 18a, Schedule D, Line 16 has an entry, Edit the amount from Line 16 to Line 18a. Bracket if negative. Line 18a, Schedule D, Line 16 is blank but there are entries on Lines, 8b – 15, Column (f), Compute the total of Lines 8b – 15 Column (f) and edit to Line 18a (2). Bracket if negative. Line 19, Entry(s) present in Line 17, Column (2) and/or Line 18a, Column (2), Compute the total of Line 17(2) and Line 18a (2). Edit the amount to Line 19(2). Bracket if negative. Verify Line 3 of Form 1041 with amounts reported on Schedule D, Part III as follows: Exception: If the ESBT box is checked on Form 1041, don't edit money amounts from Schedule D to Line 4 of Form 1041. If And Then Line 3 has a positive entry, Line 3 equals Line 19(3), Do not edit. Line 3 has a positive entry, Line 3 doesn't equal Line 19(3), Note: Compute line 19(3) when necessary. "X" the amount on Line 3. Edit the amount reported on Line 19(3) of Schedule D in its place. Line 3 has a ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Line 3 equals Line 20 (Line 19(3), if Line 20 is blank), Do not edit. Line 3 has a ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Line 3 doesn't equal Line 20 (Line 19(3), if Line 20 is blank), "X" the amount on Line 3. Edit the amount reported on Line 20 (Line 19(3) if Line 20 is blank) in its place. Bracket the edited amount. Note: Do not edit more than ≡ ≡ ≡ ≡ ≡ ≡ ≡ except on Final returns. Line 3 has a ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 1041-QFT isn't a final return, "X" the amount on Line 3. Edit ≡ ≡ ≡ ≡ on Line 3. Bracket the edited amount. Line 3 is blank, zero, or illegible, A positive entry (a, gain) is present on Line 19(3), Edit the amount from Line 19(3) to Line 3 of Form 1041-QFT. Line 3 is blank, zero, or illegible, A ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 20 (Line 19(3), if Line 20 is blank), Edit the amount from Line 20 (Line 19(3) if Line 20 is blank) to Line 3 of Form 1041-QFT. Bracket the edited amount. Line 3 is blank, zero, or illegible, A ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 20, Final Returns - Edit the amount from Line 20 to Line 3 of Form 1041-QFT. Non-Final Returns - Edit ≡ ≡ ≡ ≡ ≡ ≡ to Line 3 of Form 1041-QFT. Bracket the edited amount. Line 3 is blank, zero, or illegible, A ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 19(3), and Line 20 is blank, Final Returns - Edit the amount from Line 19(3) to Line 3 of Form 1041-QFT. Non-Final Returns - Edit ≡ ≡ ≡ ≡ to Line 3 of Form 1041-QFT. Bracket the edited amount. If the loss shown on Line 3 of Form 1041-QFT is in ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 1041-QFT is a non-Final composite return (box is checked on Line 13), process as follows: Note: A composite Form 1041-QFT is a single return filed by a trustee that has some or all the QFTs of which they are a trustee. Statements can be attached in lieu of Schedule D. If Then Schedules are attached and have the following information: Name of owner or beneficiary, Type and gross amount of each type of return, Type and amount of each deduction and credit allocable to the QFT, Tax and payments made for each QFT, and Termination date for each QFT that was terminated during the tax year, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ No schedules are attached, or the schedules attached do not have all the information shown above, Reduce and bracket the amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

# Schedule D-1 (Form 1041) - Continuation Sheet for Schedule D (Form 41-QFT)

3.11.14.46.1.1.4.1 (01-01-2020) Schedule D-1 (Form 1041) - Continuation Sheet for Schedule D (Form 41-QFT) See IRM 3.11.14.27.4, Schedule D-1, Continuation. Note: Schedule D-1 is not valid for returns after 201212.

# Line 4 - Other Income (or Loss) (Form 1041-QFT)

3.11.14.46.1.1.5 (01-01-2025) Line 4 - Other Income (or Loss) (Form 1041-QFT) Taxable income or losses that cannot be reported on Lines 1a, 2a, or 3 of Form 1041-QFT are reported on Line 4 (Part II). An amount reported on Line 4 must be supported by a statement or supporting schedule. If Then An entry is present on Line 4, but Line 4 is different from the supporting schedule/attachment, "X" the Line 4 amount. Edit the correct amount in its place. Continue editing the return. An entry is present on Line 4, but a supporting document is not attached, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Line 4 is blank, or illegible and "OTHER INCOME" is reported on an attachment to Form 1041-QFT, Edit the Line 4 amount from the applicable attachment. An attachment shows the nature of the income to be the same as that reported on any of Lines 1 through 3, Part II, Decrease Line 4. Increase the correct Income line (Lines 1 through 3).

# Line 5 - Total Income (Form 1041-QFT)

3.11.14.46.1.1.6 (01-01-2016) Line 5 - Total Income (Form 1041-QFT) Line 5, Part II, of Form 1041-QFT is the total of Lines 1 through 4, Part II. If Then Line 5 is blank or illegible, Compute the amount by adding Lines 1 through 4 or by bringing totals forward from any attachments and schedules. Line 5 is the only entry in the Income Section, Edit the Line 5 amount to Line 4.

# Deduction Section - Lines 6 - 10, (Form 1041-QFT)

3.11.14.46.1.2 (01-01-2022) Deduction Section - Lines 6 - 10, (Form 1041-QFT) This subsection has instructions for editing the Deduction Section in Part II of Form 1041-QFT.

# Lines 6 - 9, Deductions (Form 1041-QFT)

3.11.14.46.1.2.1 (01-01-2022) Lines 6 - 9, Deductions (Form 1041-QFT) All authorized deductions from income are to be reported on Lines 6 through 9 (Part II) of Form 1041-QFT. After perfecting Lines 6 through 9, edit the balance to Line 10 (Total Deductions). Lines 6 through 9 (Part II) consist of the following items: Line 6 - Taxes. Line 7 - Trustee Fees. Line 8 - Attorney, Accountant and Return Preparer Fees. Line 9 - Other Deductions. Lines 6 through 9 must be positive. If a negative amount is present on any of these lines: Delete the negative amounts and add to the calculation for Line 10. Recompute the amounts on Lines 10, and 11, if necessary. Perfect all illegible or misplaced entries, when possible. Delete all misplaced entries and move to the correct lines. The Net Operating Loss (NOL) must be reported on Line 9. Adjust the correct Total lines. If the taxpayer notates "TAX EXEMPT PRORATION" on Line 10 or any other Deduction line: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Line 10 - Total Deductions (Form 1041-QFT)

3.11.14.46.1.2.2 (01-01-2025) Line 10 - Total Deductions (Form 1041-QFT) Line 10 of Form 1041-QFT is the total of Lines 6 through 9. If Line 10 is blank or illegible, add the amounts on Lines 6 through 9 and edit to Line 10. If an entry is present on Line 10, but all Lines 6 through 9 are blank, decide if an attachment or schedule is present that clarifies the deduction. If documentation is present, edit the amount to the correct Line 6 through 9. If documentation is not present, correspond for the correct deduction amount, if any. If an entry has been placed on Line 11, Taxable Income, but was inadvertently placed on Line 10 and Line 11 is blank or zero: Delete the Line 10 amount and edit the amount to Line 11.

# Tax and Payments Section - Lines 11 - 21b (Form 1041-QFT)

3.11.14.46.1.3 (01-01-2024) Tax and Payments Section - Lines 11 - 21b (Form 1041-QFT) This subsection has instructions for editing the Tax and Payments Section in Part II of Form 1041-QFT.

# Line 11 - Taxable Income (Form 1041-QFT)

3.11.14.46.1.3.1 (01-01-2019) Line 11 - Taxable Income (Form 1041-QFT) If Line 11 is blank or illegible, compute Line 11 by subtracting Line 10 from Line 5 and edit amount on to Line 11.

# Line 12 - Tax (Form 1041-QFT)

3.11.14.46.1.3.2 (01-01-2019) Line 12 - Tax (Form 1041-QFT) Tax owed by the taxpayer must be reported on Line 12, Part II, of Form 1041-QFT. Tax is derived from one of the following: Tax Rate Schedule. Schedule D (Form 1041). Composite Return. Line 12 must be a positive amount. Never bracket a Line 12 amount as a loss. If Line 12 is reported as a negative amount, decide if this amount is a misplaced entry. If Then The amount on Line 12 is a misplaced entry, Delete the Line 12 amount. Edit the correct amount to Line 12. Continue editing the return. Unable to decide if Line 12 is a misplaced entry, Delete the Line 12 amount. Continue editing the return. If Line 12 is blank or illegible, review the return and its attachments and edit the correct amount: If Then Able to obtain correct amount, Delete the Line 12 amount. Edit the correct amount to Line 12. Continue editing the return. Unable to obtain correct amount, Correspond for the correct entry to Line 12.

# Line 13 - Credits (Form 1041-QFT)

3.11.14.46.1.3.3 (01-01-2022) Line 13 - Credits (Form 1041-QFT) All authorized credits against tax are to be reported on Line 13. Part II, of Form 1041-QFT. Line 13 must be a positive amount. Never bracket a Line 13 amount as a loss. If Line 13 is bracketed, decide if this amount is a misplaced entry: If Then The amount on Line 13 is a misplaced entry, Delete the Line 13 amount. Edit the amount to the correct line. Bracket the loss. Unable to decide if Line 13 is a misplaced entry, Delete the Line 13 amount. Continue editing the return. If Line 13 is blank or illegible and Credits are reported on attachments to the return: Edit the correct Credit amount and perfect Line 13. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Line 15 - Net Invest Income Tax Form 8960 (Form 1041-QFT)

3.11.14.46.1.3.4 (01-01-2019) Line 15 - Net Invest Income Tax Form 8960 (Form 1041-QFT) If Line 15 is blank or illegible and there is an amount other than zero on Form 8960, Line 21, edit the amount on Line 15. Reminder: Form 8960 must be attached if any amount is on Line 15. If missing, correspond.

# Line 16 - Total Tax (Form 1041-QFT)

3.11.14.46.1.3.5 (01-01-2019) Line 16 - Total Tax (Form 1041-QFT) If Line 16 is blank or illegible then compute Line 16 by adding Line 14 and 15 and edit the amount on Line 16.

# Line 17 - Payments (Form 1041-QFT)

3.11.14.46.1.3.6 (01-01-2024) Line 17 - Payments (Form 1041-QFT) Do not perfect the taxpayer's entry on Line 17 unless it is a misplaced entry. For Tax Periods 202212 - 202311 - If an amount is claimed for an Elective or Deemed Payment Election (notation "IRA22DPE" , edit RPC "J" and give the return to the lead. See IRM 3.11.14.10.16, Elective or Deemed Payment Election and Credit Transfers.

# Line 18 - Elective Payment Election Amount From Form 3800 (Form 1041-QFT)

3.11.14.46.1.3.7 (01-01-2024) Line 18 - Elective Payment Election Amount From Form 3800 (Form 1041-QFT) Under the Inflation Reduction Act (IRA) of 2022 and CHIPS and Science Act of 2022, the taxpayer can elect to: Take certain credits as an "Elective or Deemed Payment." Transfer a credit to another taxpayer. Claim the credit as a General Business Credit. For Tax Periods 202212 - 202311 - If an amount is claimed for an Elective or Deemed Payment Election notation "IRA22DPE" , edit RPC "J" and give the return to the lead. See IRM 3.11.14.10.16, Elective or Deemed Payment Election and Credit Transfers.

# Lines 19 and 20 - Amount Owed/Overpayment (Form 1041-QFT)

3.11.14.46.1.3.8 (01-01-2024) Lines 19 and 20 - Amount Owed/Overpayment (Form 1041-QFT) Lines 19 and 20 are edited as positive only. If the taxpayer enters a negative amount, do not bracket. Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If an entry is present on Line 19 and no entries are present on Lines 12 through 18, edit the amount from Line 19 to Line 16. For Form 1041-QFT, edit the proper entry to Line 19 or 20 if both are blank. Do both of the following: Subtract the total of Lines 17 and 18 from Line 16. Edit the positive result on Line 19 or the negative result (do not bracket) on Line 20. If pre-computed interest or delinquency penalty is evident, ensure that it has not been added to Line 16 or reduced Line 17. If Then The amount on Line 19 has pre-computed interest or penalty, "X" Line 19 amount. Delete the interest, penalty or other charge from the amount owed. Edit the correct amount owed to the left of the original entry. The amount on Line 20 is reduced by precomputed interest or penalty, "X" Line 20 amount. Compute the Overpayment amount without the interest or penalty. Edit the correct Overpayment to the left of the original entry.

# Lines 21a and 21b - Credit Elect/Refund (Form 1041-QFT)

3.11.14.46.1.3.9 (01-01-2024) Lines 21a and 21b - Credit Elect/Refund (Form 1041-QFT) If an entry is present on Line 20, an entry must be present on Line 21a or 21b. If And Then Lines 21a and 21b are both blank and or zero, Return is not final, Edit the amount from Line 20 to Line 21a. Lines 21a and 21b are both blank and or zero, Final Return, Edit the amount from Line 20 to Line 21b. Lines 21a and 21b are both the same and don't add up to Line 20, Return is not final, Delete the amount on Line 21b. Lines 21a and 21b are both the same and don't add up to Line 20, Final Return, Delete the amount on Line 21a. Line 21a has an entry, Return is not final, Do not edit. Line 21a has an entry, Final Return, Arrow entry from Line 21a to Line 21b, Note: An entry on Line 21b is an indication of a refund return. For refund return processing instructions, see IRM 3.11.14.10.7, Refund Returns (45 Day Jeopardy and High Dollar Refunds).

# ♦Signature♦ (Form 1041-QFT)

3.11.14.46.2 (01-01-2020) ♦Signature♦ (Form 1041-QFT) See IRM 3.11.14.19, Signature.

# ♦Paid Preparer's Section♦ (Form 1041-QFT)

3.11.14.46.3 (01-01-2022) ♦Paid Preparer's Section♦ (Form 1041-QFT) The Paid Preparer's Section is found below the Signature area at the bottom of Form 1041-QFT. See IRM 3.11.14.21, Paid Preparer's Section.

# Form 1041-N, U.S. Income Tax Return for Electing Alaska Native Settlement Trusts (ANST)

3.11.14.47 (01-01-2025) Form 1041-N, U.S. Income Tax Return for Electing Alaska Native Settlement Trusts (ANST) Section 671 of the Economic Growth and Tax Relief Reconciliation Act of 2001, P.L. 107-16, resulted in the creation of Form 1041-N and IRC 646. The provision is effective for tax year's ending after June 7, 2001, and tax year's beginning on or prior to December 31, 2010. Section 101(a)(1) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, P.L. 111-312, extended the provision for two years, and is effective for tax years beginning on or prior to December 31, 2012. The American Taxpayer Relief Act of 2012, P.L. 112-240, made the provision permanent. All Forms 1041-N are processed at the Ogden Submission Processing Campus. The volume is minimal. Forms 1041-N are processed as a Form 1041-QFT (Document Code "39," MFT "05," Tax Class "2)." The only unique identifying field that differentiates the two returns is an audit code "8" on the 1041-N account. Caution: Only domestic addresses are valid for 1041-N returns. If Then An original Form 1041-N is received at any Submission Processing site other than OSPC, Detach and forward to the following address: Internal Revenue Service 1973 North Rulon White Blvd Mail Stop 4091 Ogden, UT 84404 Prepare Letter 86C to inform the taxpayer that the return was sent to OSPC. Caution: Prior to shipping Form 1041-N to OSPC, ensure that the IRS Received Date is edited to the return. Edit Audit Code "8" on all Form 1041-N tax returns. Edit "1 - 8" next to Line 6. The due date to file Form 1041-N is the 15th day of the 4th month following the close of the tax year. For calendar year returns the due date is April 15th. For a display of Form 1041-N transcription lines, see Exhibit 3.11.14-3, Form 1041-N Transcription Lines. If Form 3800, General Business Credit is attached for Tax Year 2023 and later returns, See IRM 3.11.14.39 Form 3800, General Business Credit and follow the procedures for editing of Form 3800.

# Part II - Tax Computation Section (Form 1041-N)

3.11.14.47.1 (01-01-2025) Part II - Tax Computation Section (Form 1041-N) This subsection has instructions for editing the income. deductions, and Tax and Payments of Form 1041-N. All lines in Part II will be transcribed unless instructed not to.

# Income Section - Line 1a through Line 5 (Form 1041-N)

3.11.14.47.1.1 (01-01-2025) Income Section - Line 1a through Line 5 (Form 1041-N) This subsection has instructions for editing income, lines 1a - 5 of Form 1041-N.

# Line 1a - Interest Income (Form 1041-N)

3.11.14.47.1.1.1 (01-01-2016) Line 1a - Interest Income (Form 1041-N) Accept taxpayer's entry.

# Line 2a - Total Ordinary Dividends (Form 1041-N)

3.11.14.47.1.1.2 (01-01-2016) Line 2a - Total Ordinary Dividends (Form 1041-N) Accept taxpayer's entry.

# Line 2b - Qualified Dividends (Form 1041-N)

3.11.14.47.1.1.3 (01-01-2022) Line 2b - Qualified Dividends (Form 1041-N) Qualified Dividends are reported on Line 2b of Form 1041-N. If present, Line 2b must be a positive amount. Never bracket a Line 2b amount as a loss. Note: Though transcribed, Line 2b is not used in the computation of Line 5, Total Income. If Line 2b is blank or illegible and the Qualified Dividends are reported on attachments to the return, edit the correct amount and perfect Line 2b. If the correct amount cannot be decided, do not perfect Line 2b or correspond for Qualified Dividend information. If an amount is present on Line 14 of Schedule D (1041-N) and Line 2b, page 1, of Form 1041-N is blank, edit the amount from Line 14 to Line 2b of Form 1041-N.

# Line 3 - Capital Gain (or Loss) (Form 1041-N)

3.11.14.47.1.1.4 (01-01-2024) Line 3 - Capital Gain (or Loss) (Form 1041-N) The total gain or loss from the sale or exchange of capital assets is reported on Line 3, Part II, of Form 1041-N. Schedule D (1041-N) must be attached if an amount ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 3 of Form 1041-N. If And Then Line 3 of Form 1041-N has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Schedule D is blank or missing, Correspond. Form 8824 is attached with an amount greater than zero on Line 22, Schedule D is blank or missing, Correspond, regardless of the entry on Line 3 of Form 1041-N. Note: Edit CCC "1" if Form 8824, Like-Kind Exchanges, is attached. If an amount is present on Line 3 of Form 1041-N and Schedule D (Form 1041-N) is attached, process as follows: If Then Line 3, Form 1041-N, entry equals Line 11 or 12, Schedule D, Continue editing the return. Line 3 doesn't equal Line 11 or 12, "X" the Line 3 amount. Edit the amount reported on Line 11 or 12 Schedule D (1041-N) in its place. If Line 3 of Form 1041-N is a loss and Schedule D, Page 3, of Form 1041-N is blank or missing, process as follows: If Then Line 3, Form 1041-N, equals Line 4 or 10 (Schedule D) and the loss is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Continue editing the return. Line 3, Form 1041-N, doesn't equal Line 4 or 10, Schedule D, and the loss is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Edit the lesser amount to Line 3 of Form 1041-N Bracket the amount. Line 3, Form 1041-N, loss is more than ≡ ≡ ≡ ≡ ≡ ≡, Reduce the loss to ≡ ≡ ≡ ≡ ≡ ≡ Bracket the amount. Exception: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If Line 3 of Form 1041-N is blank, zero, or illegible and a Schedule D is attached: Review Schedule D to obtain the amount to be edited to Line 3 of Form 1041-N. If Then A positive amount is present on Line 11 of Schedule D (1041-N), Edit the amount to Line 3 of Form 1041-N. A negative amount of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 12 Schedule D (1041-N). Edit the amount (with brackets) to Line 3 of Form 1041-N. A negative amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Line 12 of Schedule D, Reduce the loss to ≡ ≡ ≡ ≡ ≡ ≡. Edit the ≡ ≡ ≡ ≡ (with brackets) to Line 3 of Form 1041-N.

# Line 4 - Other Income (or Loss) (Form 1041-N)

3.11.14.47.1.1.5 (01-01-2022) Line 4 - Other Income (or Loss) (Form 1041-N) Taxable income or losses that cannot be reported elsewhere on Form 1041-N must be reported on Line 4, Part II. An amount reported on Line 4 must be supported by a statement or supporting schedule. If Then An entry is present on Line 4 and Line 4 is different from the supporting schedule/attachment, Delete the incorrect Line 4 amount. Edit the correct amount. An entry is present on Line 4 and a supporting document is not attached, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ Line 4 is blank, or illegible and "OTHER INCOME" is reported on an attachment to Form 1041-N, Edit the Line 4 amount from the applicable attachment. An attachment shows the nature of the income to be the same as that reported on any of Lines 1 through 3, Part II, Decrease Line 4. Increase the correct Income line (Line 1 through 3).

# Line 5 - Total Income (Form 1041-N)

3.11.14.47.1.1.6 (01-01-2016) Line 5 - Total Income (Form 1041-N) Line 5, Part II, of Form 1041-N is the total of Lines 1 through 4, Part II. If Then Line 5 is blank or illegible, Compute the amount by adding Lines 1 through 4 or by bringing totals forward from any attachments and schedules. Line 5 is the only entry in the Income Section, Edit the Line 5 amount to Line 4.

# Deductions Section - Lines 6 - 12 (Form 1041-N)

3.11.14.47.1.2 (01-01-2025) Deductions Section - Lines 6 - 12 (Form 1041-N) This subsection has instructions for editing deductions lines 6 - 12 of Form 1041-N.

# Lines 6 - 11 (Form 1041-N)

3.11.14.47.1.2.1 (01-01-2026) Lines 6 - 11 (Form 1041-N) All authorized Deductions from Income are to be reported on Lines 6 through 11. Part II, of Form 1041-N. Lines 6 through 11, Part II, consist of the following items: Line 6 - Taxes. Line 7 - Trustee Fees. Line 8 - Attorney, Accountant and Return Preparer Fees. Line 9 - Other Deductions not Subject to the 2% Floor. Line 10 - Allowable Miscellaneous Itemized Deductions Subject to the 2% Floor. (TY 2017 and prior) Line 11 - Exemption. Perfect all illegible or misplaced entries (when possible). Delete all misplaced entries and move to the correct lines. After perfecting Lines 6 through 11, edit the balance to Line 12, Total Deductions. Lines 6 through 11 must be positive. If a negative amount is present on any of these lines, delete the negative amounts and move them to Line 4 as a positive amount. If an amount was already present on Line 4, delete the existing Line 4 amount and recalculate to add the amounts moved from Lines 6 through 11. Recompute the amounts on Lines 5, 12, and 13. The Net Operating Loss (NOL) must be reported on Line 9. If decided that the taxpayer erroneously entered an amount to the incorrect line that must have been entered to Line 9: Delete the amount from the incorrect line. Edit the amount to Line 9. Adjust the correct Total lines. If Line 11 has an exemption amount, accept an amount as listed below: RETURN TYPE Exemption Amount Fiduciary Code Trust Code Simple Trust $300 2 - Grantor Trust $300 2 or 4 3 Qualified Disability Trust or 642(b)(2)(c) notated $5,100 8 - Complex Trust $100 3 - All Other Trusts $100 If Line 13, Taxable Income, is less than Line 5, Total Income, do not bracket or move the entries in Lines 6 through 11.

# Line 12 - Total Deductions (Form 1041-N)

3.11.14.47.1.2.2 (01-01-2025) Line 12 - Total Deductions (Form 1041-N) Line 12 of Form 1041-N is the total of Lines 6 through 11. If Line 12 is blank or illegible, add the amounts on Lines 6 through 11 and edit to Line 12. If an entry is present on Line 12, but all Lines 6 through 11 are blank, research attachments or schedules for the amount to edit: If documentation is present, edit the amount to the correct Line 6 through Line 11. If documentation is not present, correspond for the correct deduction amount, if any. If an entry has been placed on Line 13, Taxable Income, but was inadvertently placed on Line 12 and Line 13 is blank or zero, delete the Line 12 amount and edit the amount to Line 13. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Tax and Payments Section - Lines 13 - 23 (Form 1041-N)

3.11.14.47.1.3 (01-01-2025) Tax and Payments Section - Lines 13 - 23 (Form 1041-N) This subsection has instructions for editing taxes and payments lines 13 - 22 of Form 1041-N.

# Line 13 - Taxable Income (Form 1041-N)

3.11.14.47.1.3.1 (01-01-2016) Line 13 - Taxable Income (Form 1041-N) If Line 13 is blank or illegible, subtract Line 12 from Line 5 and edit on Line 13. Reminder: Do not correct the taxpayer's entry on Line 13 unless it is a misplaced entry.

# Line 14 - Tax (Form 1041-N)

3.11.14.47.1.3.2 (01-01-2022) Line 14 - Tax (Form 1041-N) Tax owed by the taxpayer must be reported on Line 14, Part II, of Form 1041-N. Tax is derived from one of the following: Tax Rate Schedule. Schedule D (Form 1041-N). Line 14 must be a positive amount. Never bracket a Line 14 amount as a loss. If Line 14 is reported as a negative amount, decide if this amount is a misplaced entry. If Then The amount on Line 14 is a misplaced entry, "X" the Line 14 amount. Edit the correct amount to Line 13. Unable to decide if Line 14 is a misplaced entry, Delete the Line 14 amount. If Line 14 is blank or illegible, review the return and its attachments to decide the correct amount: If Then Able to decide, Edit the correct amount to Line 14. Unable to decide if Line 14 is a misplaced entry, Correspond for the correct amount to Line 14.

# Line 15 - Credits (Form 1041-N)

3.11.14.47.1.3.3 (01-01-2022) Line 15 - Credits (Form 1041-N) All authorized credits against income are to be reported on Line 15, Part II, of Form 1041-N. Line 15 must be a positive amount. Never bracket Line 15 amount as a loss. If Line 15 is bracketed, decide if this amount is a misplaced entry: If Then The amount on Line 15 is a misplaced entry, "X" the Line 15 amount. Edit the amount to the correct line. Bracket the loss. Unable to decide if Line 15 is a misplaced entry, "X" the Line 15 amount. If Line 15 is blank or illegible and Credits are reported on attachments to the return: Edit the correct credit amount on Line 15. If the correct amount cannot be decided, do not perfect Line 15 or correspond for credit information.

# Line 16 - Total Tax (Form 1041-N)

3.11.14.47.1.3.4 (01-01-2024) Line 16 - Total Tax (Form 1041-N) If line 16 is blank or illegible, edit the result of line 15 subtracted from Line 14 to line 16.

# Line 17 - Net 965 Tax Liability Paid from Form 965-A (TY2017 and later) (Form 1041-N)

3.11.14.47.1.3.5 (01-01-2026) Line 17 - Net 965 Tax Liability Paid from Form 965-A (TY2017 and later) (Form 1041-N) The amount for Line 17, Form 1041-N is from Form 965-A, Corporate Report of Net Tax Liability Part II, column (k). For editing procedures for Line 17, Form 1041-N see: IRM 3.11.14.10.9, Section 965 Returns Form 1041 and Form 1041-N (TY2017 and later) IRM 3.11.14.10.9.1, Tax Period 202112 and later - Line 25 and Line 15, Schedule G, Form 1041 (Line 19 Form 1041-N). IRM 3.11.14.10.9.2, Tax Period 202012 through 202111 - Line 25 and Line 15, Schedule G, Form 1041 (Line 19 Form 1041-N). IRM 3.11.14.10.9.3, Tax Period 201912 through 202011 - Line 25 and Line 15, Schedule G, Form 1041 (Line 19 Form 1041-N). IRM 3.11.14.10.9.4, Tax Period 201812 through 201911 - Line 24 and Line 25f, Schedule G, Form 1041. IRM 3.11.14.10.9.5, Tax Period 201712 through 201811 - Section 965 Tax or 965 Election (Form 1041 and Form 1041-N).

# Line 18 - Payments (Form 1041-N)

3.11.14.47.1.3.6 (01-01-2024) Line 18 - Payments (Form 1041-N) For Tax Periods 202212 - 202311 - If an amount is claimed for an Elective or Deemed Payment Election (notation "IRA22DPE" ), edit RPC "J" and give the return to the lead. See IRM 3.11.14.10.16, Elective or Deemed Payment Election and Credit Transfers.

# Line 19 - Elective Payment Election Amount From Form 3800 (Form 1041-N)

3.11.14.47.1.3.7 (01-01-2024) Line 19 - Elective Payment Election Amount From Form 3800 (Form 1041-N) Under the Inflation Reduction Act (IRA) of 2022 and CHIPS and Science Act of 2022, the taxpayer can elect to: Take certain credits as an "Elective or Deemed Payment." Transfer a credit to another taxpayer. Claim the credit as a General Business Credit. For Tax Periods 202212 - 202311 - If an amount is claimed for an Elective or Deemed Payment Election (notation IRA22DPE), edit RPC J and give the return to the lead. See IRM 3.11.14.10.16, Elective or Deemed Payment Election and Credit Transfers.

# Lines 20 and 21 - Tax Due/Overpayment (Form 1041-N)

3.11.14.47.1.3.8 (01-01-2024) Lines 20 and 21 - Tax Due/Overpayment (Form 1041-N) Lines 20 and 21 are edited as positive only. If the taxpayer enters a negative amount, do not bracket. Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ For Form 1041-N, edit the proper entry to Line 20 or 21 if both are blank. Do both of the following: Subtract the total of Lines 18 and 19 amounts from the total of Lines 16 and 17 amounts. Edit the positive result on Line 20 or the negative result (do not bracket) on Line 21. If pre-computed interest or delinquency penalty is evident, ensure that it has not been added to Line 20 or reduced Line 21. If Then The amount on Line 20 has pre-computed interest or penalty, "X" Line 20 amount. Delete the interest, penalty or other charge from the amount owed. Edit the correct amount owed to the left of the original entry. The amount on Line 21 is reduced by pre-computed interest or penalty, "X" Line 21 amount. Compute the Overpayment amount without the interest or penalty. Edit the correct Overpayment to the left of the original entry.

# Lines 22a and 22b - Credit Elect/Refund (Form 1041-N)

3.11.14.47.1.3.9 (01-01-2024) Lines 22a and 22b - Credit Elect/Refund (Form 1041-N) If an entry is present on Line 21, an entry must be present on Line 22a or 22b. If And Then Lines 22a and 22b are both blank or zero, Return is not Final, Edit the amount from Line 21 to Line 22a. Lines 22a and 22b are both blank or zero, Final Return, Edit the amount from Line 21 to Line 22b. Lines 22a and 22b are the same, and the total doesn't equal Line 21, Return is not Final, Delete the amount on Line 22b. Lines 22a and 22b are the same, Final Return, Delete the amount on Line 22a. Line 22a has an entry and Line 22b is blank or zero, Return is not Final, Do not edit. Line 22a has an entry and Line 22b is blank or zero, Final Return, Arrow entry from Line 22a to Line 22b. Note: An entry on Line 22b is an indication of a refund return. For refund return processing instructions, see IRM 3.11.14.10.7, Refund Returns (45 Day Jeopardy and High Dollar Refunds).

# Penalty and Interest Code Editing (Form 1041-N)

3.11.14.47.2 (01-01-2024) Penalty and Interest Code Editing (Form 1041-N) The trustee is instructed to complete Form 2210 and enter the amount of any penalty in the bottom margin of Form 1041-N. Reminder: Edit CCC "K" if Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, box "F" is checked in Part II on a 2009 return only. The Penalty and Interest Code will be edited in the left margin next to Line 6 of Form 1041-N in "4 - 1" format. Edit the Penalty and Interest Code as follows: If penalty and/or interest is added to Line 20 of Form 1041-N, "X" the Line 20 amount and edit the true Tax Due (minus the penalty and/or interest) to the left of the "X" . If Then Form 1041-N is received by the Return Due Date, Do not edit a Penalty and Interest Code when the trustee has notated penalty and/or interest on the return. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Edit Penalty and Interest Code "1" in the-left hand margin next to Line 6 in "4 - 1" format. The received date is not stamped on Form 1041-N and a penalty and/or interest code is shown on the return, Edit the Received Date in the center of Form 1041-N.

# ♦Signature♦ (Form 1041-N)

3.11.14.47.3 (01-01-2020) ♦Signature♦ (Form 1041-N) See IRM 3.11.14.19, Signature.

# Paid Preparer's Section (Form 1041-N)

3.11.14.47.4 (01-01-2022) Paid Preparer's Section (Form 1041-N) The Paid Preparer's Section is found below the Signature area at the bottom of Form 1041-N. See IRM 3.11.14.21, Paid Preparer's Section.

# Prior Year Returns - Form 1041

3.11.14.48 (01-01-2022) Prior Year Returns - Form 1041 The instructions in this subsection of the manual are for editing prior year returns.

# Prior Year Returns - General Information

3.11.14.48.1 (01-01-2026) Prior Year Returns - General Information Prior year returns are: Calendar Year returns filed for tax periods ending on or prior to 202412 (calendar year). Fiscal Year returns filed for tax periods ending 202511 and earlier. Edit the received date in MMDDYY format when it is missing. Note: All prior year returns must have a Received Date.

# Prior Year Returns - Editing Procedures

3.11.14.48.2 (01-01-2024) Prior Year Returns - Editing Procedures Follow the current year procedures when no specific instructions are given. Line references in these prior year instructions are to the current year line numbers, unless otherwise specified. Renumber or convert all transcription lines to agree with current year line numbers, unless otherwise specified. Renumber - Line through the transcription line numbers on the prior year form/schedule and edit the current year line numbers. Convert to a current year form if marking out the line numbers would make transcription more difficult. Match the Total Tax, Total Payments, Overpayment, and Tax Due on Forms 1040, 1040A, and 1040EZ to the same line descriptions on Form 1041. See IRM 3.11.14.45, Decedent Returns - Form 1040, Form 1040A, and Form 1040EZ.

# Prior Year Returns - Form 1041 (Page 1)

3.11.14.48.2.1 (01-01-2019) Prior Year Returns - Form 1041 (Page 1) Edit the tax period to the right of the preprinted Calendar Year in YYMM format. Line 21 of Form 1041 is the taxpayer's Exemption amount. If SECTION 642(b)(2)(C) is notated on Line 21 of a TY 2001 Form 1041, edit Fiduciary Code "8" . Underpayment of Estimated Tax (Form 2210): Allow the amount reported on Line 27 if any of the boxes are checked in Part II of Form 2210 other than box F. Edit CCC "8" . See IRM 3.11.14.8.24, CCC "8" - Waiver of Estimated Tax Penalty. Reminder: Also, for TY 2009 only, edit CCC "K" if Form 2210, box "E" is checked in Part II

# Prior Year Returns - Schedule G (Form 1041)

3.11.14.48.2.2 (08-15-2025) Prior Year Returns - Schedule G (Form 1041) Use the table below when converting Form 1041 Schedule G for prior year revisions. Edit only the Lines listed in the table. Schedule G, Form 1041 TY 2023 revision Line 1d, change to 1e Schedule G, Form 1041 TY 2022-2020 revisions Line 6, check-box Form 4255 change to 6a Line 6, check-box Form 8611 change to 6b Line 6, no check-box change to 6c Line 16a, change to 16 Line 16b, change to 17 Schedule G, Form 1041, TY 2009 and prior revisions Line 2b, line through the line number 2b Line 2c, change to 2b Line 2d, change to 2c Line 3, change to 2e Schedule G, Line 4, on 201311 and prior year returns must be X'd out if an amount is present. Verify the amount claimed on Line 1b of Schedule G as follows: Tax Year Form 4972 2008 to 2021 Line 30 or Line 7, if no entry on Line 30 Verify the amount claimed on Line 1c of Schedule G as follows: Tax Year Schedule I 2008 to 2021 Line 56

# Prior Year Returns - Schedule D (Form 1041)

3.11.14.48.2.3 (01-01-2016) Prior Year Returns - Schedule D (Form 1041) Schedule D (1041) was revised for TYs 2013, 2008, 2004, 2003, 2002. Convert prior year Schedule D as follows: Note: Do not convert page 1 of 201212 and prior year Schedule D. Convert and edit page 2 as needed and then line through the line numbers on page 1. When converting page 2 of a prior year Schedule D, "X" the old, printed line numbers and renumber according to the table below. For all lines containing an entry in Part III, column 2, edit the current line number as follows: Convert to Current Year Schedule D TY 2012 - 2008 TY 2007 - 2004 17 13 13 18a 14a 14a 18b 14b 14b 18c 14c 14c 19 15 15 43 32 33 If Schedule D is not attached and the amount claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond. Correct 2012 and prior revisions of Schedule D, as follows: If prior year revisions show Then convert to current year Line 5, Schedule D, equal Line 4, Form 1041, and no amount on Line 12, Edit Line 5 amount to Lines 17(2) and 19(2). Bracket if negative. Line 12, Schedule D, equal Line 4, Form 1041 and no amount on Line 5, Edit Line 12 amount to Lines 18a (2) and 19(2).Bracket if negative. If the total of Lines 5 and 12, Schedule D equal Line 4, Form 1041, Edit Line 5 amount to Line 17(2). Edit Line 12 amount to 18a (2). Compute the total of Lines 17(2) and 18a(2). Edit the total to Line 19(2). Bracket if negative. The total of Lines 5 and 12, Schedule D doesn't equal Line 4, Form 1041, Do not dummy Schedule D, page 2. Correspond. Form 1041, Schedule G, line 1a is blank and Schedule D, line 34 has an amount, Edit the amount from line 34, Schedule D to Schedule G, line 1a. If Schedule D, Part III, Columns (1) and (2) are both blank And Then Line 13 Schedule D, Line 5 has an entry, Edit the amount from Line 5 to 17(2). Bracket if negative. Line 13 Schedule D, Line 5 is blank but there are entries in Lines 1a - 4, column (f), Compute the total of Lines 1a - 4 and edit to Line 17(2). Bracket if negative. Line 14a Schedule D, Line 12 has an entry, Edit the amount from Line 12 to Line 18a (2). Bracket if negative. Line 14a Schedule D, Line 12 is blank but there are entries in Lines 1a - 4, column (f), Compute the total of Lines 6a - 11, column (f) and edit to Lines 18a (2). Bracket if negative. If And Then Line 15 is blank Entry(s) present in Line 13 (2) and/or Line 14a (2), Compute the total of Lines 13(2) and 14a (2). Edit the amount to Line 19(2). Bracket if negative.

# Prior Year Returns - Form 3800 (General Business Credits)

3.11.14.48.2.4 (01-01-2023) Prior Year Returns - Form 3800 (General Business Credits) See IRM 3.11.14.22.2.2, Schedule G, Line 2b - General Business Credits, and IRM 3.11.14.39, Form 3800 - General Business Credit for further instructions. Decide if Form 3800 is required on a prior year return as follows: If an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡is present on Schedule G, Line 2c, and Tax Year is And either of the following conditions is present 2007 The Form 3800 box is checked, or A credit is shown (other than Form 5884, 6478, 8835 - Section B, 8844, or 8846). For 2010 and prior revisions follow the instructions below to dummy Form 3800 to current year form format: Page 1 Line 1 use amount on Part I Line 2 of prior year revision Line 3 use amount on Part I Line 5 of prior year revision Line 4 use amount on Part I Line 6 of prior year revision Line 5 use amount on Part I Line 7 of prior year revision Line 16b use amount on Part II Line 18b of prior year revision (2011 - 2008 only) Note: 2012 and subsequent Form 3800 no longer have Part II, Line 16b and cannot be converted. Page 2 Line 24 use amount on Part I Line 5 of prior year revision Line 28 use total of Line 19b plus Line 25 on Part II of prior year revisions (2010 - 2008 only) Line 30 use amount on Part II, Line 30 of prior year revision and any amount next to an notation "SBC" at the bottom of the form. Line 32 use amount on Part I, Line 3 of prior year revision. Line 33 use amount on Part I Line 5 of prior year revision Line 34 use amount on Part I Line 6 of prior year revision Line 35 use amount on Part I Line 7 of prior year revision Page 3 Complete Part III, lines 1a - 1zz, and 4a - 4z, using the amounts from corresponding lines in Part I, lines 1a - 1bb, and Part II, lines 29a - 29h, respectively. Note: If the prior year 3800 has a credit that is not listed on the 2016 Form 3800 no editing is needed. Line through or "X" the prior year Form 3800 If one or more general business credits are claimed on a prior year return it will be necessary to edit the applicable line number to match the current year Form 3800 line numbers or prepare a dummy Form 3800. If a general business credit is claimed and support is present: Add the credits together; and, Edit the total amount to Line 2b*, of Schedule G if missing. *(Line 2c for 2009 or prior) Edit the source document credit (from applicable line) to current year Form 3800. Caution: If the amount claimed for any of these credits is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the applicable form is not present, correspond. Continue editing the return. Follow the instructions in IRM 3.11.14.39, Form 3800- General Business Credit.

# Prior Year Returns - Form 8941 (Credit For Small Employer Health Insurance Premiums)

3.11.14.48.2.5 (01-01-2016) Prior Year Returns - Form 8941 (Credit For Small Employer Health Insurance Premiums) Use the table below when converting Form 8941 for TY 2010 through 2013. Edit only the lines listed in the table. X out the printed line numbers 16 and 18 on the prior year form. Edit prior year Lines 16 and 18 as follows: Convert to Current Year Form 8941 TY 2013 and TY 2012 TY 2010 Form 8941 Box A - SHOP Check Box n/a n/a Box B - EIN 1b n/a Box C - Credit Period Limitation n/a n/a Line 1 1a Line 1 Line 16 16 Line 21 Line 18 18 Line 23 Note: The first year for Box C - Credit Period Limitation was TY 2016.

# ♦Routing Guide for Attachments♦

3.11.14.49 (01-01-2026) ♦Routing Guide for Attachments♦ Review all attachments to the return prior to the return is considered processable. Only detach attachments when specifically instructed. Note: Consider a return or document an "original" if it has an original signature or was stamped "Process as Original." Edit Action Trails (e.g., "2848 DETACHED" ) in the lower left corner going vertically up the side of the return. Edit the name and EIN (if not present) on the detached document. Also, edit the return received date (e.g., Rec'd MM/DD/YY) in the lower left margin of the detached document prior to routing. Follow the general guidelines below written for each attachment: Document/Form Detach Descriptions/Actions CP 259/959 (Spanish version), - Note: Master File Generated 1st TDI Notice. No Correspondence is attached or taxpayer's response shows: Taxpayer disagrees that they are required to file the return. Only page one of the return is attached. EIN on notice doesn't 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 correction C&E not trained to complete. Then, Route to Compliance Services Collection Operations (CSCO). Use return address on CP notice: Brookhaven - Stop #662 Memphis - Stop #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: Move the notice to the back of the return. Continue processing the return. Note: If the return is unsigned, but the taxpayer signed the CP notice under the jurat, it is not necessary to correspond for the signature. CP 259 A through H NO OSPC BMF Entity Mail Stop 6273. CP 502, (3rd Notice–Balance Due) NO Refer to your manager as a possible TAS case. CP 504, Notice of Intent to seize (levy) your property or rights to property (IMF). Note: 3rd Notice - Balance Due, primarily IMF, although can generate for BMF in certain circumstances. CP 504B, Notice of Intent to seize (levy) your property or rights to property (BMF). Note: 1st BMF Notice - Balance Due. NO Pull CP 504/504B to the front. Route notice and return to Accounts Management. CP 518 Note: Do not route to Statute Control Unit for clearance. See IRM 3.11.14.10.11, Statute Returns. NO Correspondence is attached or taxpayer's response shows: Taxpayer disagrees that they are required to file the return. Only page one of the return is attached. EIN on notice doesn't match EIN on return. Return requested on notice not the same as return submitted. Taxpayer asking question(s) or requesting IRS to correct their account. Case involves any other IRS correction C&E not trained to complete. Then, Route to Compliance Services Collection Operations (CSCO). Use return address on CP notice. Brookhaven - Stop #662 Memphis - Stop #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: Move the notice to the back of the return. Continue processing the return. Note: If the return is unsigned, but the taxpayer signed the CP notice under the jurat, it is not necessary to correspond for the signature. CP 2000, Request for verification of Unreported Income, payments or Credits NO Refer to your manager as a possible TAS case. Death Certificate (Taxpayer requests return of certificate) YES Give to the Lead Tax Examiner. IRC 965 Transition Tax Statement (or similar language) NO See IRM 3.11.14.8.8, CCC "J" - Section 965 Tax. See IRM 3.11.14.10.9, Section 965 Returns (Form 1041 and 1041-N) (TY 2017 and later) See IRM 3.11.14.17.1.9, Line 8 - Other Income (or loss). "965(i)" or "Section 965(i) Election" (or similar language) is notated or IRC 965 Transition Tax Statement with amount present on Line 7 (or similar statement showing to defer Net Tax Liability under Section 965(i)) No See IRM 3.11.14.8.1, CCC "B" - Section 965(i) Election to Defer Net Tax Liability. See IRM 3.11.14.8.8, CCC "J" - Section 965 Tax. See IRM 3.11.14.10.9, Section 965 Returns (Form 1041 and Form 1041-N) (TY 2017 and later). See IRM 3.11.14.17.1.9, Line 8 - Other Income (or loss). Letters 112C, 282C, 2255C or 2284C NO Identify which organization started the letter to the taxpayer (e.g., what organization signed the letter?). Route letters started by Accounts Management (AM) to Accounts Maintenance Research (AMRH): Ogden - Mail Stop 6712 Kansas City - Mail Stop N2 6800 Route letters started by Collections as follows: If correspondence is attached or taxpayer's response shows any of the following: Taxpayer disagrees that they are required to file the return. Only page one of the return is attached. EIN on letter doesn't match EIN on return. Return requested on letter not the same as return submitted. Taxpayer asking question(s) or requesting IRS to correct their account. Case involves any other IRS correction C&E not trained to complete. Then, Route to Compliance Services Collection Operations (CSCO). Use return address on letter. Brookhaven - Stop #662 Memphis - Stop #81 Philadelphia - 4-N31.142 If none of the above apply, correspondence or written response to the letter is not attached and/or, no "599" is notated: Then, Move the letter to the back of the return and continue processing. 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. Letter 1300, Letter Request for Information on Schedule K-1 NO Continue normal processing. Disregard the letter. Letter 2030, Initial Notice Issued to Request Verification for Unreported Income, Deductions, Payments and/or Credits on BMF Income Tax Returns Matched to Payer Information Documents NO Put letter in front of return and route both to BMF AUR in Compliance. Letter 2531, Initial Contact for Potential Discrepancy of Income, Deductions and/or Credits Claimed on BMF Income Tax Returns Matched to Payer Information Documents NO Put letter in front of return and route both to BMF AUR in Compliance. Has tax liability for Multiple Tax Periods or Types of Tax NO Numbered Returns - route to Rejects. Unnumbered Returns, prepare a dummy return if possible; otherwise correspond. Other Tax Returns (original signature) YES Edit Received Date to the detached return. Route to proper function unless specifically directed otherwise. Exception: Returns attached to a consolidated return will NOT be detached. Petitions in opposition of tax law provisions YES Note: Do not edit working trail when detaching petition. Route to: IRS ≡ ≡ ≡ ≡ ≡ ≡ ≡ 1111 Constitution Avenue, NW Washington, DC 20224 State Tax Returns (original or copy with an original signature) YES Route to Receipt and Control. State Tax Returns (Photocopy, facsimile, or no signature) NO Leave attached. Statement establishing Reasonable Cause for delinquent filing NO Issue Letter 1382C, Penalty Removal Request Incomplete. Continue editing the return. Remittance found NO Immediately hand carry the return and remittance to supervisor. Request for Acknowledgement NO Do not edit. Request for information or inquiries YES Photocopy any data necessary to process the return. Attach the photocopy to the return. Route original attachment to the proper office for necessary correction. Request for Installment Agreement YES Route as follows: Ogden - route to Collections Stop 5500. Kansas City - Mail Stop P4 5000. Request for Adjustment to another document YES Route to proper function. Attachment must have Name, Address, EIN, and IRS Received Date. Edit if missing. Request for Money Transfer NO/YES NO - If the Estate or Trust notates transfer of money TO the return you are processing: Prepare Form 3465, Adjustment Request, and: Edit in the Routing box Rejects. Notate "See attached money transfer request" in Remarks box. Edit Action Code 450 to route the request to Rejects. YES - If the Estate or Trust notates transfer of money FROM the return you are processing: Edit CCC "X" to freeze overpayment. Detach transfer request. Photocopy Pages 1 and 2 of Form 1041 (Page 1 of Form 1041-QFT or Form 1041-N). Prepare Form 3465, Adjustment request, and: Edit in the Routing box Adjustments. Notate the requested action in the Remarks Box. Attach Form 3465 to the request and photocopy of return then route to Accounts Management. Continue editing the return. Request for Form 8109, Deposit Slips or Coupons Books NO Do not edit. Request for Forms or Schedules NO If requesting current year forms: Prepare Form 4190, Order Form for tax Forms and publications. Forward to National Distribution Center (NDC) for processing. If requesting prior year forms: Prepare Form 6112, Prior Year Tax Products order Form. Forward to National Distribution Center (NDC) for processing. Note: Use the write in sections of Form 4190 and Form 6112 for all BMF forms and schedule requests. Statement showing hardship if no Form 3753 (Manual Posting Voucher) or Form 5792 (IDRS Manual Refund) is attached. NO Refer to your manager to administer local TAS procedures. See IRM 3.11.14.2.4, Taxpayer Advocate Service (TAS). TD F 90-22.1, Report of Foreign Bank and financial Accounts NO Do not edit. Two Form 1041 returns are present and the second return has the same EIN and Tax Period as the first. NO "X" page 1 of the second return and treat it as an attachment to the first. Exception: Do not "X" if an amended return. See IRM 3.11.14.10.1, Amended Returns. The table below has routing instructions for specific forms and/or documents attached to Forms 1041, 1041-QFT, or 1041-N. Exception: Attachments to nontaxable Grantor Trust returns, which support the line items on Form 1041, do not require any editing. For a description of nontaxable Grantor Trusts see IRM 3.11.14.13.4.1, Grantor Trusts. Caution: These Procedures can vary at different campuses; consult your manager for any local procedures. Leave a Working Trail in the lower left corner going vertically up the side of the return when anything was detached, or any special type of correction was done. Routing Guide for Attachments Document Detach Action Form SS-4, Application for Employer Identification NO If the entities on Form SS-4 and Form 1041 are the same, route to Entity with the Form 1041 attached. Form SS-4, Application for Employer Identification YES If the entities on Form SS-4 and Form 1041 are different, detach Form SS-4 and route to EIN Operations at CAMC Stop 532G. Continue processing Form 1041. Form W-2, Wage and Tax Statement or W-2G, Certain Gambling Winnings NO Support for Line 14, Schedule G, see IRM 3.11.14.22.12.5, Line 14, Schedule G - Federal Income Tax Withheld. Form W-7, Application for IRS Individual Taxpayer Identification Number (ITIN) YES Route to: Austin Submission Processing Campus AUSPC ITIN Unit Stop: 6090 Austin, TX 73301-0057 Form 56, Notice Concerning Fiduciary Relationship, and Form 56-F, Notice Concerning Fiduciary Relationship of Financial Institution YES Route to the Entity Control Function with all applicable attachments (i.e., Will, Trust Agreement, Court Appointed Trustee, etc.) Form 433-B, Collection Information Statement for Business Yes Route as follows: Ogden - route to Collections. Mail Stop 5500. Kansas City route to Mail Stop P4 5000. Form 433-D, Installment Agreement Yes Route as follows: Ogden - route to Collections. Mail Stop 5500. Kansas City route to Mail Stop P4 5000. Form 461, Limitation on Business Losses NO See IRM 3.11.14.9, "Return Processing Code (RPC)." Form 843, Claim for Refund and Request for Abatement YES Route to Accounts Management. Form 965-A, Individual Report of Net 965 Tax Liability No See IRM 3.11.14.36, Form 965-A - Individual Report of Net Tax Liability. Form 982, Reduction of Tax Attributes Due to Discharge NO Do not edit. Form 990 Series, Organization Exempt from Income Tax YES Non-EO Campus - Detach from Form 1041 and route to OSPC. Form 990 Series, Organization Exempt from Income Tax YES OSPC - Route for processing. Form 1040 or Form 1040-SS, U.S. Individual Income Tax Return NO Leave attached if return is filed for an individual involved in bankruptcy. See IRM 3.11.14.10.2, Bankruptcy Returns. Leave attached if return is notated copy, duplicate, or signature is not original for an individual that is a grantor of a trust. See IRM 3.11.14.13.4.1, Grantor Trusts. See IRM 3.11.14.45, Decedent Returns - Form 1040, Form 1040-SS, Form 1040A, and Form 1040EZ, instructions when it is decided the return must be processed as IMF. Form 1040 w/2555, (Foreign Earned Income) NO Leave attached if return is filed for an individual involved in bankruptcy. See IRM 3.11.14.10.12 (6), Foreign Address Returns (International). Route to OSPC with all attachments. Form 1040 w/2555EZ, (Foreign Earned Income Exclusion) NO Leave attached if return is filed for an individual involved in bankruptcy. See IRM 3.11.14.10.12(6), Foreign Address Returns (International). Route to OSPC with all attachments. Form 1040 w/4563, Exclusion of Income for Bona Fide Residents of American Samoa NO Leave attached if return is filed for an individual involved in bankruptcy. See IRM 3.11.14.10.12(6), Foreign Address Returns (International). Route to OSPC with all attachments. Form 1040 w/5074, Allocation of Individual Income Tax to Guam or the Commonwealth of Northern Mariana Islands NO Leave attached if return is filed for an individual involved in bankruptcy. See IRM 3.11.14.10.12(6), Foreign Address Returns (International). Route to OSPC with all attachments. Form 1040-GUAM, (U.S. Non-Resident Alien) NO Leave attached if return is filed for an individual involved in bankruptcy. See IRM 3.11.14.10.12(6), Foreign Address Returns (International). Route to the OSPC with all attachments. Form 1040NR, U.S. Nonresident Alien Income Tax Return NO Leave attached if return is filed for an individual involved in bankruptcy. See IRM 3.11.14.10.12(6), Foreign Address Returns (International). Leave attached if return is a copy of the Form 1040NR for an individual that is a grantor of a trust. IRM 3.11.14.13.4.1, Grantor Trusts. Route to KCSPC with all attachments if Form 1040-NR uses an EIN. Processed as NMF in KCSPC. Route to KCSPC if it is for an individual (SSN). Form 1040-PR, U.S. Self-Employment Tax Return (Puerto Rico) NO Leave attached if return is filed for an individual involved in bankruptcy. See IRM 3.11.14.10.12(6), Foreign Address Returns (International). Route to OSPC with all attachments. Form 1040-SS, U.S. Self-Employment Tax Return-Virgin Islands, Guam, American Samoa and NMI NO Leave attached if return is filed for an individual involved in bankruptcy. See IRM 3.11.14.10.12, Foreign Address Returns (International). Route to OSPC with all attachments. Schedule C, (Form 1040), Profit or Loss from Business NO Place in sequence order. See IRM 3.11.14.31 Schedule C (Form 1040) Profit or Loss From Business. Support for Line 3. See IRM 3.11.14.17.1.4, Line 3 - Business Income (or Loss). Schedule C-EZ, (Form 1040), Net Profit from Business NO Support for Line 3. See IRM 3.11.14.17.1.4, Line 3 - Business Income (or Loss). Schedule D, (Form 1041), Capital Gains and Losses NO Support for Line 4. Place in sequence order. See IRM 3.11.14.17.1.5, Line 4 - Capital Gain or Loss/Schedule D. Schedule E (Form 1040), Supplemental Income and Loss NO Place in sequence order. See IRM 3.11.14.32 Schedule E (Form 1040) Supplemental Income and Loss. Support for Line 5. See IRM 3.11.14.17.1.6, Line 5 - Rents, Royalties, Partnerships, Other Estates and Trusts, etc., Schedule F, (Form 1040), Farm Income and Expenses NO Place in sequence order. See IRM 3.11.14.33 Schedule F (Form 1040) Profit or Loss from Farming. Support for Line 6, See IRM 3.11.14.17.1.7, Line 6 - Farm Income (Loss). Schedule H, (Form 1040), Household Employment Taxes NO Support for Line 7 of Schedule G (Page 2). Place in sequence order. See IRM 3.11.14.22.9, Line 7, Schedule G – Household Employment Taxes (Schedule H, Form 1040). Schedule I, (Form 1041) Alternative Minimum Tax NO Support for Line 1c, Schedule G (Page 2). Place in sequence order. See IRM 3.11.14.22.1.3, Line 1c, Schedule G - Alternative Minimum Tax (Schedule I). Schedule K-1, Form 1041, Beneficiary's Share of Income, Deductions, Credits, etc. YES Detach current year and prior two year Schedules K-1. Always detach future year Schedules K-1. ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Support for Line 18. See IRM 3.11.14.17.2.4, Line 18 -Income Distribution Deduction (Schedule K-1). Schedule K-1, Form 8865, Partner's Share of Income, Credits, Deductions, etc. NO Do not edit. Form 1041-A, Trust Accumulation of Charitable Amounts YES Route to OSPC if original (live) signature only. Form 1041-N, U.S. Income Tax Return for Electing Alaska Native Settlement Trusts (ANST) NO Route to OSPC. See IRM 3.11.14.47, Form 1041-N, U.S. Income Tax Return for Electing Alaska Native Settlements. Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts NO Domestic – Route to KCSPC with all attachments. Exception: Domestic Returns erroneously sent to OSPC. International - Route to OSPC with all attachments. See IRM 3.11.14.46, Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts. Form 1041-T, Allocation of Estimated Tax Payments to Beneficiaries YES See IRM 3.11.14.22.12.2, Line 11, Schedule G - Estimated Tax Treated as Paid by Beneficiary (Form 1041-T). Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons YES Route with all attachments to OSPC. Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding YES/NO Route (Copy A only) to OSPC. Retain Copies B, C, and D with document. Mail Copy E to Withholding Agent. Note: Signed letter of Competent Authority is valid alternative to Form 1042-S. Form 1045, Application for Tentative Refund YES Route to Accounts Management following local procedures. Exception: If only Page 2 or only Page 3 of Form 1045 is attached, leave attached and continue processing Form 1041. Form 1096, Annual Summary and Transmittal Returns of U.S. Information YES Route to Receipt and Control. Form 1099, Information Return of Income and Payments (Copy A only) YES Route to Receipt and Control. Form 1099 PR, Statement for Receipts of Total Distributions from Profit Sharing, Retirement Plans, and Individual Retirement Arrangements NO Support for Line 8. See IRM 3.11.14.17.1.9, Line 8 - Other Income (or Loss). Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAS, Insurance Contracts, etc. NO Support for Line 14, Schedule G. See IRM 3.11.14.22.12.5, Line 14, Schedule G - Federal Income Tax Withheld. Form 1116, Foreign Tax Credit (Individual, Estate or Trust) NO Support for Line 2a of Schedule G (Page 2). Edit Audit Code "1" , ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ in the left margin next to Line 10. See IRM 3.11.14.22.2.1, Line 2a, Schedule G - Foreign Tax Credit (Form 1116). Form 1120, U.S. Corporation Income Tax Return (attached to a bankruptcy return) NO Send Form 1041 and all documents attached to Entity Control. Form 1120-SF, U.S. Income Tax Return for Settlement Funds YES See IRM 3.11.14.10.10, Qualified Settlement Fund Tax Returns (Form 1041). Form 1128, Application to Adopt, Change or Retain a Tax Year NO Approved - Leave attached and edit CCC "Y." See IRM 3.11.14.12.5, Short Period Returns - Editing Proof of Entitlement. Form 1128, Application to Adopt, Change or Retain a Tax Year YES Not Approved - Route to Entity. Edit a Received Date onto the Form 1128. See IRM 3.11.14.12.8, Short Period Returns - Editing Form 1128 With No Indication of Approval or Denial. Form 2210 or Form 2210-F, Underpayment of Estimated Tax by Individuals, Estates and Trusts NO Possible CCC "K and/or 8" . See IRM 3.11.14.8.9, CCC "K" - Qualifying Small Business Taxpayer. See IRM 3.11.14.8.24, CCC "8" - Waiver of Estimated Tax Penalty. See IRM 3.11.14.17.3.5, Line 27 -Estimated Tax Penalty. Form 2439, Notice to Shareholder of Undistributed Long–Term Capital Gains NO Support for Line16. See IRM 3.11.14.22.12.7, Line 16, Payment from Form 2439. Form 2848, Power of Attorney and Declaration of Representative, YES See IRM 3.11.14.5, Centralized Authorization File (CAF). Route as follows: Ogden - Route to Mail Stop 6737. Kansas City - Route to: Internal Revenue Service 5333 Getwell Rd., Mail Stop 8423 Memphis, TN 38118 Any Other Power of Attorney NO Do not edit. Form 3468, Investment Credit NO Line 8, Form 3468 greater than zero, edit CCC V. See IRM 3.11.14.8.16, CCC "V" - Qualified Therapeutic Drug Credit Claimed. Form 3468, Part III, Line 11e -11j - Historic Structure Code. See IRM 3.11.14.10.15.5, Historic Structure Code. Support for Line 1a, Form 3800, see IRM 3.11.14.39.1, Line 1a - Form 3468, Part II. Support for Line 1d, Form 3800, see IRM 3.11.14.39.4, Line 1d - Form 3468, Part III. Support for Line 1o, Form 3800, see IRM 3.11.14.39.15, Line 1o - Form 3468, Part IV. Support for Line 1v, Form 3800, see IRM 3.11.14.39.22, Line 1v - Form 3468, Part V. Support for Line 4a, Form 3800, see IRM 3.11.14.39.36, Line 4a- Form 3468, Part VI. Support for Line 4k, Form 3800, see IRM 3.11.14.39.46, Line 4k - Form 3468, Part VII. Form 3520-A, Annual Return of Foreign Trust with a U.S. Owner YES Route to OSPC. Form 3753, Manual Refund Posting Voucher NO Possible CCC "O" . See IRM 3.11.14.8.12, CCC "O" - Manual Refund. Form 3800, General Business Credit NO Support for Line 2b* of Schedule G. *(Line 2c for 2009 and prior) Place in sequence order. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39, Form 3800 - General Business Credit. Form 3893, Re-Entry Document Control NO See IRM 3.11.14.10.6, Re-Entry Document Procedures. Form 3949, Information Report Referral YES Route according to page 2 of Form 3949 to CI, Exam, Disclosure, etc. following local procedures. Continue processing the return. Form 3949-A, Information Referral YES Ogden: Route Form 3949-A to R&C. Continue processing the return. Kansas City: Route Form 3949-A to Ogden Service Center. Continue processing the return. Form 4136, Credit for Federal Tax Paid on Fuels NO Support for Line 17. Place in sequence order. See IRM 3.11.14.22.12.8, Line 17, Payments from Form 4136. Form 4255, Certain Credit Recapture, Excessive Payments, and Penalties NO Support for Line 1d of Schedule G (Page 2). See IRM 3.11.14.22.1.4 , Line 1d, Schedule G - Amount from Form 4255, Part I, Line 3, Column (q). Support for Line 6a of Schedule G (Page 2). See IRM 3.11.14.22.6, Line 6a, Schedule G - Recapture Tax from Form 4255 Part I, Line 3, Column (r). Form 4720, Return of Certain Excise Taxes on Charities and Other Persons Under Chapter 41 and 42 of the IRC YES Non-EO Campus Detach from Form 1041 and route to OSPC. Form 4720, Return of Certain Excise Taxes on Charities and Other Persons Under Chapter 41 and 42 of the IRC YES OSPC - Route for processing. Form 4797, Sale of Business Property NO Place in sequence order. See IRM 3.11.14.29, Form 4797 Sale of Business Property. Support for Line 7, Form 1041. See IRM 3.11.14.17.1.8, Line 7 - Ordinary Gain (or Loss) from Form 4797. Form 4810, Request for Prompt Assessment Under IR Code Section 6501(d) NO Audit Code "4" will be required. If an Audit Code is required, edit Audit Code 4 in the left margin next to Line 10 in "1 - 4" format. See IRM 3.11.14.10.3, Prompt Assessment/Prompt Determination (Form 4810). and IRM 3.11.14.7, Audit Codes. Form 4952, Investment Interest Expense Deduction NO Support for Schedule D (Form 1041). Place in sequence order. See IRM 3.11.14.25, Form 4952 - Investment Interest Expense Deduction. Form 4970, Tax on Accumulation Distribution of Trusts NO Support for Line 9 of Schedule G or Line 24 of Form 1041. See IRM 3.11.14.17.3.2, Line 24 - Total Tax. See IRM 3.11.14.22.11, Line 9, Schedule G - Total Tax. Form 4972, Tax on Lump-Sum Distributions NO Support for Line 1b of Schedule G. See IRM 3.11.14.22.1.2, Line 1b, Schedule G - Tax on Lump-sum Distributions (Form 4972). and Line 24 of Form 1041, See IRM 3.11.14.17.3.2, Line 24 - Total Tax. Form 5227, Split-Interest Trust Information Return YES Non-EO Campus - Route to OSPC if original (live) signature only. Form 5227, Split-Interest Trust Information Return YES OSPC if original (live) signature only - Route for processing. Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts NO Support for Line 9, Schedule G. See IRM 3.11.14.22.11, Line 9, Schedule G - Total Tax. Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations NO Edit Audit Code "1" , in the left margin, next to Line 10 in "1 - 1" format, if Line 18 or 22 of Form 1041 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. See IRM 3.11.14.7, Audit Codes. Form 5471, Schedule E, Income, War Profits, and Excess Profits Taxes Paid or Accrued NO See IRM 3.11.14.9, Return Processing Code (RPC). Form 5471, Schedule G-1, Cost Sharing Arrangement NO See IRM 3.11.14.9, Return Processing Code (RPC). Form 5471, Schedule H, Current Earnings and Profits NO See IRM 3.11.14.9, Return Processing Code (RPC). Form 5471, Schedule I-1, Information for Global Intangible Low-Taxed Income NO See IRM 3.11.14.9, Return Processing Code (RPC). Form 5471, Schedule P, Previously Taxed Earnings and Profits of U.S. Shareholder of Certain Foreign Corporations NO See IRM 3.11.14.9, Return Processing Code (RPC). Form 5495, Request for Discharge from Personal Liability under IRC 6905 NO Place Form 5495 in front of Form 1041 and route to local Exam Classification. Form 5792, IDRS Manual Refund NO Possible CCC "O." See IRM 3.11.14.8.12, CCC "O" - Manual Refund. Form 5884, Work Opportunity Credit NO Line 6 - Support for Form 3800, Line 4b and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.37, Line 4b - Form 5884. Form 5884-A, Employee Retention Credits for Affected Disaster Area Employers NO Line 6 - Support for Form 3800, Line 1zz and/or Line 2b of Schedule G. Place in sequence order. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.34, Line 1zz - Other Credits Form 5884-B, New Hire Retention Credit NO Support for Form 3800, Line 1zz and Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.34, Other Credits. Form 6252, Installment Sale Income NO Edit "6" followed by the correct Installment Sale Indicator in the left margin next to Line 10 in "6 - N" format. Note: Not valid for Grantor Trusts (nontaxable) or Bankruptcy Estates. See IRM 3.11.14.10.15.4, Installment Sale Indicator. Form 6478, Biofuel Producer Credit NO Line 6 - Support for Form 3800, Line 4c and/or Line 2b of Schedule G. Edit Action Code 343 if Form 6478, *Line 5, Column (c) or Line 7 has an entry. *(2008 - Line 7 or Line 9, Column (c)). See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.38, Line 4c - Form 6478. Form 6765, Credit for Increasing Research Activities NO Line 32 - Support for Form 3800, Line 1c and/or Line 2b of Schedule G. (PY only) See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.3, Line 1c - Form 6765. Support for Line 4i, Form 3800, see IRM 3.11.14.39.44, Line 4i - Form 6765 ESB Credit. Form 6781, Gains and Losses from Section 1256 Contracts and Straddles NO Edit CCC "I." See IRM 3.11.14.8.7, CCC "I" - For 6781, Regulated Futures Contracts and Tax Straddles. Form 7004, Application for Extension of Time to File a Certain Business Income Tax, Information, and Other Returns NO Support for Line 13, Schedule G. See IRM 3.11.14.22.12.4, Line 13, Schedule - Tax Paid with Form 7004. Form 7204, Consent To Extend the Time To Assess Tax Related To Contested Foreign Income Taxes - Provisional Foreign Tax Credit Agreement NO Edit RPC "L." IRM 3.11.14.9, Return Processing Code (RPC). Form 7205, Energy Efficient Commercial Building Deduction, NO Edit RPC "M." IRM 3.11.14.9, Return Processing Code (RPC). Form 7207, Advanced Manufacturing Production Credit NO Support for Line 1b, Form 3800. See IRM 3.11.14.39.2, Line 1b - Form 7207. Form 7210, Clean Hydrogen Production Credit NO Support for Line 1g, Form 3800, See IRM 3.11.14.39.7, Line 1g - Form 7210. Form 7211, Clean Electricity Production Credit NO Support for Line 1gg, Form 3800, see IRM 3.11.14.39.33, Line 1gg - Form 7211, Part II. Form 7213, Nuclear Power Production Credit NO Support for Line 1u, Form 3800. See IRM 3.11.14.39.21, Line 1u - Form 7213, Part II. Support for Line 1cc, Form 3800. See IRM 3.11.14.39.29, Line 1cc - Form 7213, Part I. Form 7218, Clean Fuel Production Credit NO Support for Line 1q, Form 3800, see IRM 3.11.14.39.17, Line 1q - Form 7218, Part II. Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR) NO Edit Audit Code "3" in the left margin next to Line 10 in "1 - 3" format. See IRM 3.11.14.7, Audit Codes. Form 8275, Disclosure Statement NO Edit Audit Code "3" to the left margin next to Line 10 in "1 - 3" format. See IRM 3.11.14.7, Audit Codes. Form 8275-R, Regulation Disclosure Statement NO Edit Audit Code "3" to the left margin next to Line 10 in "1 - 3" format. See IRM 3.11.14.7, Audit Codes. Form 8283, Noncash Charitable Contributions NO Place in sequence order. See IRM 3.11.14.41, for further editing instructions. Form 8288-A, Statement of Withholding Dispositions by Foreign Persons of U.S. Real Property Interests NO If attached to Form 1040-NR, route with all attachments to OSPC, Batching. Form 8288-B, Application for Withholding Certificate for Disposition by Foreign Persons of U.S. Real Property Interests YES Edit a Received Date and route with all attachments to OSPC, Code and Edit, FIRPTA unit. Form 8404, Interest Charge on Disc-Related Deferred Tax Liability NO Route to Receipt and Control, assure that all entity information is entered. Form 8582 or Form 8582-CR, Passive Activity Loss Limitations NO Do not edit. Form 8586, Low-Income Housing Credit NO Line 7 - Support for Form 3800, Line 4d, and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.39, Line 4d - Form 8586. Edit CCC "9" if an entry for Form 8586 is present on Line 2b, Schedule G. See IRM 3.11.14.8.25, CCC "9" - Low-Income Housing (LIHC). Form 8609, Low-Income Housing Credit Allocation and Certification NO Edit CCC "9" if an entry is present on Line 2b of Schedule G, Form 1041. IRM 3.11.14.8.25, CCC "9" - Low-Income Housing (LIHC). Form 8609-A, Annual Statement for Low-Income Housing Credit NO Edit CCC "9" if an entry is present on Line 2b of Schedule G. See IRM 3.11.14.8.25, CCC "9" - Low-Income Housing (LIHC). Form 8611, Recapture of Low-Income Housing Credit NO Support for Line 6 of Schedule G. See IRM 3.11.14.22.7, Line 6b, Schedule G - Recapture Tax from Form 8611. Form 8693, Low-Income Housing Credit Disposition Bond NO Edit CCC "9" if an entry is present on Line 2b of Schedule G. See IRM 3.11.14.8.25, CCC "9" - Low-Income Housing (LIHC). Form 8697, Interest Computation Under the Look-Back Method for completed Long-Term Contracts YES Amended and loose filed Form 8697 - Route to Accounts Management. Edit the Tax Year and EIN of Form 1041 on Form 8697. Form 8697, Interest Computation Under the Look-Back Method for completed Long-Term Contracts YES Original Refund Form 8697 - Route to Accounts Management. Edit the Tax Year and EIN of Form 1041 on Form 8697. Form 8697, Interest Computation Under the Look-Back Method for completed Long-Term Contracts NO Original Balance Due Form 8697 - Support for Line 9, Schedule G. Add the other tax owed to Line 24, Total Tax of Form 1041 (if not already added) and continue processing Form 1041. See IRM 3.11.14.17.3.2, Line 24 - Total Tax. See IRM 3.11.14.22.11, Line 9, Schedule G - Total Tax. Form 8801, Credit for Prior Year Minimum Tax-Individuals, Estates and Trusts NO Support for Line 2c of Schedule G. See IRM 3.11.14.22.2.3, Line 2c, Schedule G - Credit for Prior Year Minimum Tax (Form 8801). Form 8804, Annual Return for Partnership Withholding Tax (Section 1446) YES Route to OSPC. Caution: Do not detach and forward if the form is clearly shown as a "copy" . Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax YES, if Form 8804 attached. Otherwise, NO Route to OSPC. Caution: Do not detach and forward if the form is clearly shown as a "copy" . Form 8820, Orphan Drug Credit NO Line 6 - Support for Form 3800, Line 1h and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.8, Line 1h - Form 8820. Form 8821, Tax Information Authorization (TIA) YES Route as follows: Ogden - Route to Mail Stop 6737. Kansas City - Route to: Internal Revenue Service 5333 Getwell Rd., Mail Stop 8423 Memphis, TN 38118 Form 8822, Change of Address or Form 8822-B, Change of Address or Responsible Party - Business NO A location address is listed on Form 8822/8822-B line 7 or an entry is listed on Form 8822-B lines 8 or 9: Route to Entity Control Follow local procedures using Form 13934, Entity Document/C&E Merge Transmittal. See IRM 3.11.14.14.5, Entity Perfection - Domestic Addresses. Form 8822, Change of Address or Form 8822-B, Change of Address or Responsible Party - Business YES If the entity information is not the same as the Form 1041 - detach Form 8822/8822-B and route to Entity Control using a Form 4227. Form 8824, Like-Kind Exchanges NO Edit CCC "1" if Form 8824 is attached to Form 1041. See IRM 3.11.14.8.20, CCC "1" - Like-Kind Exchanges (Form 8824). See IRM 3.11.14.22.1.1, Line 1a, Schedule G, - Tax on Taxable Income (Tax Rate or Schedule D). Form 8826, Disabled Access Credit NO Line 8 - Support for Form 3800, Line 1e and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.5, Line 1e - Form 8826. Form 8830, Enhanced Oil Recovery Credit NO Line 4 - Support for Form 3800, Line 1t or Line 2b of Schedule G, for 2016 and later. Phased out for 2006 through 2015. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.20, Line 1t - Form 8830. Form 8834, Qualified Electric Vehicle Credit NO Line 7 - Support for Line 2b of Schedule G - for vehicles placed in service after 2006 and prior to 2008. Reminder: Possible CCC "C." See IRM 3.11.14.8.2, CCC "C" - Invalid Vehicle Year or Service Date, See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.26, Form 8834 (2009 - 2022). Form 8835, Renewable Electricity Production Credit. NO Line 22 - Support for Form 3800, Line 1f, 4e, and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.6, Line 1f - Form 8835, Part II. See IRM 3.11.14.39.40, Line 4e - Form 8835, Part II Form 8844, Empowerment Zone Employment Credit NO Line 6 - Support for Form 3800, Line 3, Part III and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.35, Line 3 - Form 8844 Form 8845, Indian Employment Credit NO Line 8 - Support for Form 3800, Line 1zz and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.34, Line 1zz - Other Credits. Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips NO Line 6 - Support for Form 3800, Line 4f and/or Line 2b of Schedule G (prior year). See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.41, Line 4f - Form 8846. Form 8847, Credit for Contributions to Selected Community Development Corporations NO Line 4 - Support for Form 3800, Line 1zz and/or Line 2b of Schedule G for 2008 revision. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.34, Line 1zz - Other Credits Form 8855, Election to Treat a Qualified Revocable Trust as Part of an Estate YES Detach form and forward to Entity. Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs) No Can be attached to the return. Take no action. Form 8860, Qualified Zone Academy Bond Credit NO Support for Form 8912, Pt III and/or Line 2(d) of Schedule G. Form 8861, Welfare-To-Work Credit NO Line 6 - Support for Form 3800, Line 1zz and/or Line 2c of Schedule G (2009 and prior). See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.34, Other Credits. Form 8864, Biodiesel, Renewable Diesel, or Sustainable Aviation Fuels Credit. NO Line 12 - Support for Form 3800, Line 1l and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.12, Line 1l - Form 8864 (diesel). Support for Line 1ff, Form 3800. See IRM 3.11.14.39.32, Line 1ff - Form 8864, Line 8. Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships NO Edit Audit Code "1" , if Line 18 or 22 of Form 1041 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, to the left margin next to Line 10 in "1 - 1" format. See IRM 3.11.14.7, Audit Codes. Form 8865, Schedule G, Statement of Application of the Gain Deferred Method Under Section 721(c) NO See IRM 3.11.14.9, Return Processing Code (RPC). Form 8865, Schedule H, Acceleration Events and Exceptions Reporting Relating to Gain Deferral Method Under Section 721 (c) NO See IRM 3.11.14.9, Return Processing Code (RPC). Form 8866, Interest Computation under the look-back method for Property Depreciated under the Income Forecast Method NO Support for Line 9, Schedule G. See IRM 3.11.14.22.11, Line 9, Schedule G - Total Tax. Form 8866, Interest Computation under the look-back method for Property Depreciated under the Income Forecast Method YES If Form 8866 shows a refund, detach and forward to Accounts Management. Form 8874, New Markets Credit NO Line 3 - Support for Form 3800, Line 1i and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.9, Line 1i - Form 8874. Form 8881, Credit for Small Employer Pension Plan Startup Costs NO Line 8 - Support for Form 3800, Line 1j. Line 11 - Support for Form 3800, Line 1dd and/or Line 2b of Schedule G. Line 15 - Support for Form 3800, Line 1ee. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.10, Line 1j - Form 8881, Part I. Support for Line 1dd, Form 3800, See IRM 3.11.14.39.30, Line 1dd - Form 8881, Part II. Support for Line 1ee, Form 3800. See IRM 3.11.14.39.31, Line 1ee - Form 8881, Part III. Form 8882, Credit for Employer-Provided Childcare Facilities and Services NO Line 9 - Support for Form 3800, Line 1k and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.11, Line 1k - Form 8882. Form 8886, Reportable Transaction Disclosure Statement NO Leave attached to return. Edit CCC "T" and Audit Code "3" to the left margin next to Line 10 in "1 - 3" format. See IRM 3.11.14.7, Audit Codes. Form 8896, Low Sulfur Diesel Fuel Production Credit NO Line 10 - Support for Form 3800, Line 1m and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.13, Line 1m - Form 8896. Form 8900, Qualified Railroad Track Maintenance Credit NO Line 7 - Support for Form 3800, Line 4g and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.42, Line 4g - Form 8900. Form 8904, Credit for Oil and Gas Production from Marginal Wells NO Line 8 - Support for Form 3800, Line 1bb and/or Line 2b of Schedule G. Place in sequence order. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.28, Line 1bb - Form 8904. Form 8906, Distilled Spirits Credit NO Line 5 - Support for Form 3800, Line 1n and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.14, Line 1n - Form 8906. Form 8907, Nonconventional Source Fuel Credit NO Line 15 - Support for Form 3800, Line 1zz and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.34, Line 1zz - Other Credits. Form 8908, Energy Efficient Home Credit NO Line 8 - Support for Form 3800, Line 1p and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.16, Line 1p - Form 8908. Form 8909, Energy Efficient Appliance Credit NO Line 28 - Support for Form 3800, Line 1zz and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). Support for Line 1zz, Form 3800 see IRM 3.11.14.39.34, Line 1zz - Other Credits. Form 8910, Alternative Motor Vehicle Credit NO Line 9 - Support for Form 3800, Line 1r and/or Line 2b of Schedule G. Reminder: Possible CCC "C" . See IRM 3.11.14.8.2, CCC "C" - Invalid Vehicle Year or Service Date, See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.18, Line 1r - Form 8910 (2005 - 2023). Form 8911, Alternative Fuel Vehicle Refueling Property Credit NO Line 3 - Support for Form 3800, Line 1s and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.19, Line 1s - Form 8911, Part I Form 8912, Credit to Holders of Tax Credit Bonds NO Line 12 - Support for Line 2d, Schedule G. See IRM 3.11.14.22.2.4, Line 2d, Schedule G - Bond Credits. Form 8923, Mine Rescue Team Training Credit NO Line 4 - Support for Form 3800, Line 1zz and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.34, Line 1zz - Other Credits. Form 8931, Agricultural Chemicals Security Credit NO Line 10 - Support for Form 3800, Line 1zz and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.34, Line 1zz - Other Credits. Form 8932, Credit for Employer Differential Wage Payments NO Line 6 - Support for Form 3800, Line 1w and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.23, Line 1w - Form 8932. Form 8933, Carbon Oxide Sequestration Credit NO Line 9, Part III - Support for Form 3800, Line 1x and/or Line 2b of Schedule G. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.24, Line 1x - Form 8933. Form 8936, Clean Vehicle Credits NO Line 8, Part II - Support for Form 3800, Line 1y and/or Line 2b of Schedule G. Line 21, Part V - Support for Form 3800, Line 1aa. Reminder: Possible CCC "C" . See IRM 3.11.14.8.2, CCC "C" - Invalid Vehicle Year or Service Date. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.25, Line 1y - Form 8936. For support of Line 1aa, Form 3800 see IRM 3.11.14.39.27, Line 1aa - Form 8936, Part V. Form 8936 (Schedule A), Clean Vehicle Credit Amount NO If more than two Form 8936, Schedule As are attached, edit an indicator of 1 on the second Form 8936, Schedule A, in the bottom right margin. See IRM 3.11.14.43, Form 8936 (Schedule A), Clean Vehicle Credit Amount. Form 8938, Statement of Foreign Financial Assets NO Edit CCC 2 if Form 8938 is attached to return. See IRM 3.11.14.8.21, CCC "2" - Statement of Foreign Financial Assets (Form 8938). Form 8939, Increase in Basis for Property Acquired From a Decedent NO Edit CCC "N" if Form 8939 is attached. See IRM 3.11.14.8.11, CCC "N" - Allocation of Increase in Basis for Property Received from a Decedent. Form 8941, Credit for Small Employer Health Insurance Premiums NO Line 18 - Support for Form 3800, Line 4h and/or Line 2b of Schedule G. Place in sequence order. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.43, Line 4h - Form 8941. Form 8948, Preparer Explanation for Not Filing Electronically NO Edit applicable E-File Waiver Indicator. IRM 3.11.14.21.5, E-File Waiver Indicator (Form 8948). Form 8949, Sales and Other Dispositions of Capital Assets No See IRM 3.11.14.8.10, CCC "M" - Form 8949 Sales and Other Dispositions of Capital Assets. Form 8960, Net Investment Income Tax NO Support for Line 5, Schedule G. Place in sequence order. See IRM 3.11.14.22.5, Line 5, Schedule G - Net Investment Income Tax. See IRM 3.11.14.42, Form 8960, Net Investment Income Tax. Form 8990, Limitation on Business Interest Expense Under Section 163(j) NO See IRM 3.11.14.9, Return Processing Code (RPC). Form 8991, Tax on Base Erosion Payments of Taxpayers with Substantial Gross Receipts NO See IRM 3.11.14.9, Return Processing Code (RPC). Form 8992, Global Intangible Low-Taxed Income (GILTI) NO See IRM 3.11.14.9, Return Processing Code (RPC). Form 8993, Section 250 Deduction for Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI) NO See IRM 3.11.14.9, Return Processing Code (RPC). Form 8994, Employer Credit for Paid Family and Medical Leave NO See IRM 3.11.14.9, Return Processing Code (RPC). Line 3 - Support for Form 3800, Line 4j and/or Line 2b of Schedule G. Place in sequence order. See IRM 3.11.14.22.2.2, Line 2b, Schedule G - General Business Credits (Form 3800). See IRM 3.11.14.39.45, Line 4j - Form 8994. Form 8996, Qualified Opportunity Fund NO See IRM 3.11.14.9, Return Processing Code (RPC). Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments NO See IRM 3.11.14.40, Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF). Form 9100, Notice of Late Election YES Depending on which IRC section is shown on Form 9100, Line 1a and route as follows: Section 1341, Claim of Right Route to: FRP. Section 1361(d) - Under 1.1361(j)(6)(ii), QSST election. Route to: BMF Entity. Section 1361(e), ESBT Election. Route to: BMF Entity. Section 42 - Form 8609, Low-income Housing Credit Allocation and Certification. Department of the Treasury Internal Revenue Service Center Low Income Housing Program Philadelphia, PA 19255-0549 Form 9465, Installment Agreement Request YES Route as follows: Ogden - Route to Collections Mails Stop 5500. Kansas City - Route to Mail Stop P4 5000. Form 13133, Expedite Processing Cycle NO See IRM 3.11.14.10.8, Compliance Secured/Prepared Returns. See IRM 3.11.14.10.8.3, Examination Prepared. See IRM 3.11.14.10.8.4, Examination Secured. Form 14039-B, Business identity Theft Affidavit NO If a specific function is shown by the envelope address or an IRS CP notice or IRS letter, place the Form 14039-B on top and route Form 14039-B and the return to the specific function. If Kansas City or Ogden, receives a Form SS-4, Application for an Employer Identification Number and Form 14039-B route the returns to BMF Entity: 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. Place the Form 14039-B on top of the return and route to the local Image Control Team (ICT): Ogden - Mail Stop 6552. Kansas City - Mail Stop C1 6525. Form 14157, Return Preparer Complaint YES Route to: Attn: Return Preparer Office 401 W. Peachtree Street NW Mail Stop 421-D Atlanta, Georgia 30308

# Form 1041 Transcription Lines

Exhibit 3.11.14-1 Form 1041 Transcription Lines This is an example of a Tax Year 2025 of Form 1041, U.S. Income Tax Return for Estates and Trusts, page 1, with transcription lines shown by a T. Various notations on the page give editing guidelines as outlined in the IRM.Tax Period field has a T the YYMM format is shown in the top margin to the right of the pre-printed tax year.A. Type of Entity has a T next to Simple Trust to the left of the entity section of the form. A text box reads Fiduciary Code above the Decedent's estate box and an arrow pointing from the box to the T.Pooled income fund: field has a T and a text box reads Trust Code with an arrow pointing to the T.A. Type of Entity boxes show the following fiduciary codes: a 1 in the Decedent's estate box; a 2 in the Simple Trust box; a 3 in the Complex trust box; an 8 in the Qualified disability trust box; 2/3 and 4/3 next to the grantor trust box; a 5 in the Bankruptcy estate chapter 7 box; a 6 in the bankruptcy estate chapter 11 box and a 3 in the pooled income fund box. Name of estate or trust: field has a T.Name and title of fiduciary: field has a T.Number and street field has a T.Room or suite number: field has a T.City or town field has a T:State or province field has a T.Country field has a T.ZIP or foreign postal code field has a T.C. Employer identification number: field has a T.Under Income: A T and CCC is shown on the dotted line next to line 2a, Total Ordinary Dividends.1. Interest income: field has a T.A RPC and T is shown in the right margin area of line 1.2a. Total ordinary dividends: field has a T.2b. Qualified dividends allocable to (2) Estate or trust: field has a T.3. Business income or (loss). Attach Schedule C or C-E.Z. (Form 1040): field has a +/- T.4. Capital gain or (loss). Attach Schedule D (Form 1041): field has a +/- T.5. Rents, royalties, partnerships, other estates and trusts, etc. Attach Schedule E (Form 1040): field has a +/- T.6. Farm income or (loss). Attach Schedule F (Form 1040): field has a +/- T.7. Ordinary gain or (loss). Attach Form 4797: field has a +/- T.8. Other income. List type and amount: field has a +/- T.9. Total income. Combine lines 1, 2a and 3 through 8: field has a +/- T/C.Under Deductions: 10. Interest. Check if Form 4952 is attached, check box: field has a T. In the margin to the left of item 10 the field has a T with a text box above that reads: Line 10 Codes.11. Taxes: field has a T.12. Fiduciary fees: field has a T.Received date, T and MMDDYYY is shown on the dotted line next to line 13 Charitable Deduction.13. Charitable deduction (From Schedule A line 7): field has a T.14. Attorney, account and return preparer fees: field has a T. 15a. Other deductions not subject to the 2 percent floor (attach statement): field has a T.15b. Net operating loss deduction (see instructions) field has a T.16. Add lines 10 through 15c: field has a T/C.17. Adjusted total income or (loss). Subtract line 16 from line 9.18. Income distribution deduction. From Schedule B, line 15. Attach Schedule K-1 (Form 1041): field has a T.19. Estate tax deduction including certain generation-skipping taxes (attach computation): field has a T.20. Qualified business income deduction. field has a T.21. Exemption: field has a T.22. Add lines 18 through 20: field has a +/- T/C.Under Tax and Payments: 23. Taxable income field has a +/- T/C.24. Total tax (from Schedule G, Part I, line 9): field has $ & cents sign with a double arrow going down to line 30 which also has a $ and cents sign and T.25a. Current year net 965 tax liability paid from Form 965-A, Part II, column (k), (see instructions) field has a T.25b. First installment of section 1062 applicable net tax liability. Enter amount from Form 1062, line 15 field has T.26. Total Payments (from Schedule G, Part II, Line 17 field has a T/C.27. Estimated tax penalty (see instructions): field has a T.28. Tax due. If line 26 is smaller than the total of lines 24, 25, and 27, enter the amount owed: field has a T/C.29. Overpayment. If line 26 is larger than the total of lines 24, 25, and 27, enter amount overpaid: field has a T/C.30a. Amount of line 29 to be: a. Credited to 2026: field has a T.30b. Refunded: field has T and the $ and cents sign.30c. Routing number field has T.30d. Type Check one. Either Checking or Savings box can be checked field has T.30e. Account number field has T.Under Sign Here: Signature of fiduciary or officer representing fiduciary field has Correspond if Missing.E.I.N. of fiduciary, if a financial institution: field has a T and Fiduciary EIN and check mark.May the I.R.S. discuss this return with the preparer shown below (see instructions)?: check box Yes check box No.Preparer's SSN or PTIN field has a T and If Present.E.I.N field has a T and If present.Phone number field has a T.Working trail is written vertically in the lower left-hand margin.T and Action Code is in the bottom left margin of the form.T and E-File Waiver Indicator Code is in the bottom center margin of the form. Please click here for the text description of the image. This is an example of a draft Tax Year 2025 Form 1041, U.S. Income Tax Return for Estates and Trusts, page 2, with transcription lines shown by a T.Under Schedule G Tax Computation (see page 27 of the instructions): 1. Tax: a. Tax on taxable income (see instructions): field has a T.b. Tax on lump-sum distributions. Attach Form 4972: field has a T.c. Alternative minimum tax (from Schedule I (Form 1041), line 56): field has a T.d. Amount from Form 4255, line 3, column (q): field has a T.e Total. Add lines 1a through 1d field has a T/C.T / C is shown on the dotted line next to d. Total. Add lines 1a through 1d.2a. Foreign tax credit. Attach Form 1116: field has a T.b. General business credit. Attach Form 3800. field has a T.c. Credit for prior year minimum tax. Attach Form 8801: field has a T.d. Bond credits. Attach Form 8912. field has a T.e. Total credits. Add lines 2a through 2d field has a T/C.4. Tax on ESBT portion of the trust field has a T.5. Net investment income tax from Form 8960, line 21 field has a T.6a. Addition to tax from Form 4255 (see instructions) field has a T.6b. Recapture tax from Form 8611. field has a T.6c. Other recapture taxes. field has a T.7. Household employment taxes. Attach Schedule H (Form 1040): field has a T.8. Other Taxes and amounts due field has a T. Please click here for the text description of the image. This is an example of a Tax Year 2025 Form 1041, U.S. Income Tax Return for Estates and Trusts, page 3, with no field designators.Under Other Information10. Current year's estimated tax payments and amounts applied from preceding year's return field has a T.11. Estimated tax payments allocated to beneficiaries (from Form 1041-T) field has a T.13. Tax paid with Form 7004 (see page 20 of the instructions): field has a T.14. Federal income tax withheld. If any is from Form(s) 1099, check: field has a T.15. Current year net 965 tax liability from Form 965-A, Part I, column (f) (see instructions) field has a T.16 Payments from Form 2439. field has dollars and cents sign and a T.17 Payments from Form 4136. field has dollars and cents sign and a T.18a Elective payment election amount from Form 3800 field has a T.18b Other Credits or payments (see instructions) field has a T.18c Section 1062 applicable net tax liability. Enter amount from Form 1062, line 14 field contains T.Line 1 through 15 questions are listed and to the far right are a Yes column and a no column used by taxpayers enter a mark or a check.Lines 6, 7, and 8 have a box just prior to the column for the Yes and No check box. Please click here for the text description of the image.

# Form 1041-QFT Transcription Lines

Exhibit 3.11.14-2 Form 1041-QFT Transcription Lines This is an example of a draft 2025 Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts, page 1, with transcription lines shown by a T. Various notations on the page give editing guidelines as outlined in the IRM.Part I General InformationTax Period field has a T shown in the top margin below and to the right of the form name. Above the form name is notated Tax Period YYMM1. Name of trust or other entity filing return: field has a T and notation Name Control.A RPC and T is shown in the right margin area of line 1a.2. Employer identification number: field has a T and notation 9 digits/legible.3b. Number and street (if a P.O. box, see the instructions): field has a T.3c. Room or suite number field has a T.3d. City or town field has a T.3e. State field has a T.3f. ZIP Code field has a T.4. Number of Q.F.T.s added to this return: field has a T and notation Number of Trusts.Part II Tax ComputationUnder Income: TCCC is shown on the dotted line next to 1a Interest income.1a Interest income: field has a T.2a Total ordinary dividends: field has a T.2b Qualified dividends: field has a T.3. Capital gain or (loss) (attach Schedule D (Form 1041)): field has a + / - T.4. Other income. List type and amount: field has a + / - T and plus or minus.5 Total income. Combine lines 1a, 2a, 3, and 4: field has a + / - T/C.Under Deductions: 6 Taxes: field has a T.T and notation Line 6 code is shown in the margin to the left of line 6. Taxes.7 Trustee fees: field has a T.8 Attorney, accountant, and return preparer fees: field has a T.T is shown on the dotted line next to 8 Attorney, accountant, and return preparer fees with notation Received Date MMDDYY.9 Other deductions not subject to the 2 percent floor: field has a T.10 Total deductions. Add lines 6 through 9: field has a T/C.Under Tax and Payments: 11 Taxable income. Subtract line 10 from line 5: field has a +/- T/C and + / minus.12 Tax (If this is a composite return, check here (check box): field has a T.13 Credits (see instructions). Specify the credits claimed: field has a T.15. Net investment Income Tax from Form 8960, Line 21 field has a T.16 Net tax. Add Lines 14 and 15: field has a T/C.17 Payments (see instructions): field has a T.18 Elective payment election amount from Form 3800 field has a T.19 Tax due. If the total of lines 17 and 18 is smaller than line 16, enter amount owed field has a T/C.20 Overpayment. If the total of lines 17 and 18 is larger than line 16, enter amount overpaid: field has a T/C.21a Amount of line 20 to be: a Credited to 2026 estimated tax: Field has T.21b Refunded field has a T.21c Routing number field has T.21d. Type Check one. Either Checking or Savings box can be checked field has T.21e Account number field has T.Next to Sign Here: Signature of trustee or officer representing trustee has a notation Correspond if missing.Under Sign Here: Preparer's SSN. or PTIN field has a T.E.I.N. field has a T.Phone number: field has a T.T and Action Code is in the bottom left margin of the form. Please click here for the text description of the image.

# Form 1041-N Transcription Lines

Exhibit 3.11.14-3 Form 1041-N Transcription Lines This is an example of a draft 2025 Form 1041-N, U.S. Income Tax Return for Electing Alaska Native Settlement Trusts, page 1, with transcription lines shown by a T. Various notations on the page give editing guidelines as outlined in the IRM.Part I General InformationTax Period field has a T shown in the top margin below and to the right of the form name. Above this field is a notation Tax Period YYMM.1. Name of trust: field has a T and notation Name Control.A RPC and T is shown in the right margin area of line 1a.2. Employer identification number: field has a T and notation 9 digits/ legible.3b. Number and street(if a P.O. box, see the instructions): field has a T.3c. Room or suite no. field has a T.3d. City or town field has a T.3e. State field has a T.3f. ZIP Code field has a T.A pop-up box reads Always edit an Audit Code 1 - 8 on a 1041-N return.Part II Tax ComputationUnder Income: T and CCC is shown on the dotted line next to 1a Interest income.1a Interest income: field has a T.2a Total ordinary dividends: field has a T.2b Qualified dividends (see instructions): field has a T.3. Capital gain or (loss) (Schedule D): field has a +/- T.4. Other income. List type and amount: field has a +/- T.5 Total income. Combine lines 1a, 2a, 3, and 4: field has a +/- T/C.Under Deductions: T is shown on the dotted line next to 6 Taxes with a notation Received date.6 Taxes: field has a T.T is shown in the margin to the left of line 6 Taxes. A pop-up box reads Line 6 Codes.7 Trustee fees: field has a T.8 Attorney, accountant, and return preparer fees: field has a T.9 Other deductions not subject to the 2 percent floor (attach schedule): field has a T.10 Reserved for future use.11 Exemption (see page 4 of the instructions): field has a T.12 Total deductions. Add lines 6 through 11: field has a T/CUnder Tax and Payments: 13 Taxable income. Subtract line 12 from line 5: field has a +/- T/C.14 Tax. If line 13 is a (loss) enter zero. Otherwise, see page 4 of the instructions and check the applicable box: (check box) Multiply line 13 by 10 percent (.10) or (check box) Schedule D: field has a T.15 Credits (see instructions). Specify: field has a T.16 Total tax. Subtract 15 from 14. See instructions field has a T/C.17. Current year net 965 tax liability Form 965-A, Part II, column (k)(see instructions). field has a T.18 Payments See instructions field has a T.19 Elective payment election amount from Form 3800 field has a T.20 Tax due. If the total of lines 18 and 19 is smaller than the total of lines 16 and 17, enter amount owed: field has a T/C.21 Overpayment. If the total of lines 18 and 19 is larger than the total of lines 16 and 17, enter amount overpaid: field has a T/C.22 Amount of line 21 to be: a Credited to next year's estimated tax: field has a T22b Refunded field has a T.22c Routing number field has T.22d Type Check one. Either Checking or Savings box can be checked field has T.22e Account number field has T.Next to Sign Here: Signature of trustee or officer representing trustee: shows a notation Correspond if missing.Under Sign Here: May the I.R.S. discuss this return with the preparer shown below (see instructions)? (check box) Yes (check box) No.Preparer's S.S.N. or P.T.I.N field has a T.E.I.N. field has a T.Phone number: field has a T.T and Action Code is in the bottom left margin of the form. Please click here for the text description of the image.

# Due Date Chart

Exhibit 3.11.14-4 Due Date Chart The following table is the Due Date Chart for Form 1041, Form 1041-QFT and Form 1041-N: Form 1041 Estate (other than Bankruptcy) Returns and Trust Returns extended due date is 5 1/2 months. Form 1041 Estate (Bankruptcy only), Form 1041-N and 1041-QFT extended due date is 6 months. Tax Period Ending Date Return Due Date (weekends and holidays considered) Delinquent Date Extended Due Date - 6 Months (weekends and holidays considered) Extended Due Date - 5 1/2 Months (weekends and holidays considered) Dec. 2025 04-15-2026 ≡ ≡ ≡ ≡ ≡ ≡ 10-15-2026 09-30-2026 Jan. 2026 05-15-2026 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 11-16-2026 10-30-2026 Feb. 2026 06-15-2026 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 12-15-2026 12-01-2026 Mar. 2026 07-15-2026 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 01-15-2027 12-31-2026 Apr. 2026 08-17-2026 ≡ ≡ ≡ ≡ ≡ ≡ 02-16-2027 02-02-2027 May 2026 09-15-2026 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 03-15-2027 03-02-2027 Jun. 2026 10-15-2026 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 04-15-2027 03-31-2027 Jul. 2026 11-16-2026 ≡ ≡ ≡ ≡ ≡ ≡ 05-17-2027 04-30-2027 Aug. 2026 12-15-2026 ≡ ≡ ≡ ≡ ≡ ≡ 06-15-2027 06-01-2027 Sep. 2026 01-15-2027 ≡ ≡ ≡ ≡ ≡ ≡ 07-15-2027 06-30-2027 Oct. 2026 02-16-2027 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 08-16-2027 07-30-2027 Nov. 2026 03-15-2027 ≡ ≡ ≡ ≡ ≡ ≡ 09-15-2027 08-31-2027

# IRC Sections and Actions to be taken on Form 1041

Exhibit 3.11.14-5 IRC Sections and Actions to be taken on Form 1041 IRC Description Action 443(b)(2) Application for Benefits Fiscal/Calendar Route to Accounts Management function. Do not process as an Amended return. 501(a) Fiscal/Calendar None 641(c) Electing Small Business Trusts Allow the entry. 643(g) Estimated Tax Treated as Paid by Beneficiary (1041-T) See IRM 3.11.14.22.12.2, Line 11, Schedule G - Estimated Tax Treated as Paid by Beneficiary (Form 1041-T). 663(c) Separate Share Tax Rule Trust (for information only) Research for TC 150. 671 thru 678 or 1.671-4 Grantor Type Trust Fiscal/Calendar See IRM 3.11.14.13.4.1, Grantor Trusts. 4947(a)(1) Non-Exempt Charitable and Split Interest Trust Edit Audit Code "6" in the left margin next to Line 10 in "1 - 6" format. 4947(a)(2) Non-Exempt Charitable and Split Interest Trust Fiduciary Code "9" and Audit Code "6" in the left margin next to Line 10 in "1 - 6" format. 6020(b) A return prepared by an IRS employee or Revenue Officer Edit CCC "4" . 6501(d) Prompt Assessment return (Form 4810 attached) Edit Audit Code "4" . in the left margin next to Line 10 in "1 - 4" format. Possible routing to Examination. 1.442.1 Change in Accounting Period Edit Audit Code "3" in the left margin next to Line 10 in "1 - 3" format.

# ♦Potential Frivolous Arguments for Examination Review♦

Exhibit 3.11.14-6 ♦Potential Frivolous Arguments for Examination Review♦ Potential Frivolous Argument Description Alleged Churches/First Amendment Income from non-religious sources and claim a vow of poverty. Altered Form Altering any or all line items with the intent of facilitating non-compliance with the tax laws. Altered Jurat/UCC (Uniform Commercial Code) 1-207 or UCC 1-308 Return has income and deductions but the jurat was altered or stricken. May have reference to UCC 1-207 / UCC 1-308 or a statement that the return was not signed under penalties of perjury. Amended Returns/Form 843, Claim for Refund and Request for Abatement Amended return or a Form 843 filed to obtain a total refund of all taxes paid in prior year's, based on a tax avoidance argument. C-Filings This frivolous position are the following four categories: Files a return claiming various types of deductions, credits, or overpayments/refunds that have no relation to reality and because of their outrageous character, qualify as frivolous returns. Files a return containing the filer's identifying information but doesn't request a refund, often lacking sufficient information to determine a tax liability. Files a return with various types of rambling dialogue and/or confusing arguments that no one can reasonably view as a good faith attempt to comply with the law. Files a return that attempts to send some type of message or protest to the IRS but fails to have sufficient identifying information for the IRS to obtain the identity of the taxpayer or correspondent or return address. Challenges to Authority/Due Process Questions various administrative authorities such as delegation orders, summons authority, Privacy Act, etc. Argues that they must be afforded a hearing or a trial prior to taxes being assessed or prior to property being seized. Challenges to Authority/Title 26 or "law" in Other Documents Argues that Title 26 of the United States Code is not law because it was never enacted as named. Collections Issues Files frivolous documents contending that various collections issues are invalid (e.g., Offers in Compromise, Collection Due Process Requests, Installment Agreements, Appeals Requests, etc.) because they are not filed and/or signed by someone with delegated authority. They have no certificate of assessment attached, do not comply in form or content with a State or Local law, are not in a certain format or lack a valid OMB (Office of Management and Budget) number or other frivolous positions. Disclaimer Submits a disclaimer stating, "disclaims the liability for the tax due" , making the liability on the return zero. Fifth Amendment Assertion of the Fifth Amendment right against self-incrimination as a basis for not providing any financial information. Foreign Income Argues that United States citizens and residents are not subject to tax on their wages or other income derived from sources within the United States, as only foreign-based income or income received by nonresident aliens and foreign S Corporations from sources within the United States is taxable. Form 1099-OID (Original Issue Discount) An individual or business files a return reporting false amounts of income (generally "Other" or "Miscellaneous" income) and claims a false amount of income tax withholding approximately equal to the amount of falsely reported income. Although the returns report income, they do not calculate any tax due. Some of the returns have Form 1099-OID (Original Issue Discount) attached, and some have Form 1096. Other false financial instruments can be filed in the place of or in addition to the Forms 1099-OID such as Form 2439, promissory notes, bonds, sight drafts, etc. Caution: Some returns will need special care. If the withholding is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, attach Form 4227 and place in the locally designated basket for Examination, Frivolous Return Program (FRP) for review. Pay particular attention to returns with Form 1099-OID attached. IRC 861 Business Employment Tax (BMF 861) Argument targets employers and advises them that wages are exempt from withholding. These taxpayers rely on Sections 861 through 865 of the Code and the regulations (in particular, Treasury Regulation 1.861-8), promoters of this scheme advise employers to stop withholding and paying payroll taxes on their employee's wages. In addition, some employers file amended payroll tax returns and request refunds of previously paid payroll taxes. IRS is a Private Organization/Collects Tribute, Not Taxes Argues that the IRS is an entity named the Internal Revenue and Tax Service, Inc., which was incorporated in Delaware in 1933, it is a collection agency for the Federal Reserve Bank or is part of the United Nations and is clandestinely leading the tax-paying public into a "new world order." Not a Person Argues that a taxpayer is not a "person" within the meaning of IRC 7701(a)(14). Obscene, Vulgar, Harassing Submits documents or other materials showing that non-filing is due to dissatisfaction with tax policies or taxation in general. Often, this argument is expressed with obscene, vulgar, or crude language and characters in an extremely demeaning manner. Protest Against Government Action/Inaction Argues that refusal to file or pay is justified because they disagree with government policies or spending plans. Section 1341, Claim of Right Repayment of income by taxpayer. Used frequently as frivolous claims. Sixteenth Amendment Argues the Sixteenth Amendment was not properly ratified and therefore the federal government doesn't have the legal authority to collect an income tax without apportionment. Straw Man Argues the government has created an entity separate and distinct from the taxpayer - a "straw man" and any tax obligations are exclusively those of the "straw man" . Taxes are Voluntary/Law doesn't Require Submits a return, amended return or correspondence that argues income taxes are voluntary. U.S. vs. Long Submits a return with zero money amounts. To explain the zeros inserted on the form, the individual references "U.S. vs. Long" . Unsigned Returns The individual completes a return but fails to sign. A statement showing disagreement with the tax system is attached or added to the return. Valuation Income is not taxable because of the declining fair market value of the dollar, because the dollar is not backed by gold/silver, because the value of services is offset by the value of the labor (barter income), etc. Zero Returns Submits a return with zero money amounts on all or most of the line items on the form (e.g., IRC 861, Forms 2439, OID, and other BMF filings that claim no income and request refunds). A statement is attached claiming there is no section of the Internal Revenue Code that established an income tax liability. The statement can also have arguments regarding the definition of income. There are several variations on this type of filing such as those bearing the words "nunc pro tunc" and not liable. Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡" ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Other All others including those listed in Notice 2010-33 or any subsequent superseding Notice. See also, The Truth About Frivolous Tax Arguments Introduction | Internal Revenue Service (irs.gov). This category has non-filer accounts resulting from initial compliance check such as cross-reference TINs. Note: Frivolous arguments citing "Collection Due Process" (CDP) must be reviewed by Collections for possible referral to Appeals. Refer to IRM 5.19.8, Collection Appeal Rights, for more information.

# U.S. Possessions ZIP Codes

Exhibit 3.11.14-7 U.S. Possessions ZIP Codes American Samoa (AS) American Samoa (AS) City ZIP Code Faga'itua 96799 Leone 96799 Olosega Manua' 96799 Pago Pago 96799 Federated States of Micronesia (FM) Federated States of Micronesia (FM) City ZIP Code Chuuk 96942 Kosrae 96944 Pohnpei 96941 Yap 96943 Guam (GU) Guam (GU) City ZIP Code Agana 96910 Inarajan 96917 Merizo 96916 Tamuning 96931 Umatac 96915 Yona 96915 Marshall Islands (MH) Marshall Islands (MH) City ZIP Code Ebeye 96970 Majuro 96960 Northern Marianna Islands (MP) Northern Marianna Islands (MP) City ZIP Code Capitol Hill 96950 Rota 96951 Saipan 96950 Tinian 96952 Palau (PW) Palau (PW) City ZIP Code Koror 96940 Palau 96940 Puerto Rico (PR) Puerto Rico (PR) City ZIP Code Adjuntas 00601 Aguada 00602 Aguadilla 00603 Aguas Buenas 00703 Aguirre 00704 Aibonito 00705 Anasco 00610 Angeles 00611 Arecibo 00612 Arroyo 00714 Bajadero 00616 Barceloneta 00617 Barraquitas 00794 Barrio Obrero Station 00935 Bayamon 00956 Boqueron 00622 Cabo Rojo 00623 Caguas 00725 Camuy 00627 Canovanas 00729 Caparra Heights 00920 Carolina 00982 Catano 00962 Cayey 00736 Ceiba 00735 Cerro Gordo 00754 Ciales 00638 Cidra 00739 Coamo 00769 Comerio 00782 Condado 00907 Corozal 00783 Coto Laurel 00780 Culebra 00775 Dorado 00646 Ensenada 00647 Esperanza 00765 Fajardo 00738 Fernandez Juncos 00936 Florida 00650 Fort Buchanan 00934 Garrachales 00652 Guanica 00653 Guayama 00784 Guayanilla 00656 Guaynabo 00965 Gurabo 00778 Hatillo 00659 Hato Rey 00936 Hormigueros 00660 Humacao 00791 Isabela 00662 Jayuya 00664 Juana Diaz 00795 Juncos 00777 La Cumbre 00926 Lajas 00667 La Plata 00786 Lares 00669 Las Marias 00670 Las Piedras 00771 Levittown 00949 Loiza 00772 Loiza Street Station 00936 Luquillo 00773 Manati 00674 Maricao 00606 Maunabo 00707 Mayaquez 00680 Mercedita 00715 Minillas Center 00936 Moca 00676 Morovis 00687 Naguabo 00718 Naranjito 00719 Orocovis 00720 Palmer 00721 Patillas 00723 Penuelas 00624 Ponce 00731 Puerta de Tierra 00936 Puerta Real 00740 Punta Santiago 00741 Quebradillas 00678 Ramey 00603 Rincon 00677 Rio Blanco 00744 Rio Grande 00721 Rio Piedras 00927 Rosario 00636 Sabana Grande 00637 Sabana Hoyos 00688 Sabana Seca 00952 Saint Just 00978 Salinas 00751 San Antonio 00690 San Francisco 00927 San German 00683 San Juan 00936 San Lorenzo 00754 San Sebastian 00685 Santa Isabel 00757 Santrurce 00936 Toa Alta 00953 Toa Baja 00949 Trujillo Alto 00976 University 00936 Utuado 00641 Vega Alta 00692 Vega Baja (Box 1 - 9049) 00694 Vieques 00765 Villalba 00766 Yabucoa 00767 Yauco 00698 Virgin Islands - U.S. (VI) Virgin Islands - U.S. (VI) City ZIP Code Charlotte Amalie 00802 Christiansted 00820 Cruz Bay 00830 Downtown 00840 Frederiksted 00840 Kingshill 00850 Saint Croix 00820 Saint John 00830 Saint Thomas 00805 Sunny Isle 00850 Veterans Annes 00820

# Province, Foreign State and Territory Abbreviations

Exhibit 3.11.14-8 Province, Foreign State and Territory Abbreviations Australia State Australia State Abbreviation Australian Capital Territory ACT New South Wales NSW Northern Territory NT Queensland QLD South Australia SA Tasmania TAS Victoria VIC Western Australia WA Brazil State Brazil State Abbreviation Acre AC Alagoas AL Amapa AP Amazonas AM Bahia BA Ceara CE Distrito Federal DF Espirito Santo ES Goias GO Maranhao MA Mato Grasso MT Mato Grosso do Sul MS Minas Gerais MG Para PA Paraiba PB Parana PR Pernambuco PE Piaui PI Rio de Janeiro RJ Rio Grande do Norte RN Rio Grande do Sul RS Rondonia RO Roraima RR Santa Catarina SC Sao Paulo SP Sergipe SE Tocantins TO Canada Province/Territory Canada Province/Territory Abbreviation Alberta AB British Columbia BC Manitoba MB New Brunswick NB Newfoundland and Labrador NL Northwest Territories NT Nova Scotia NS Nunavut NU Ontario ON Prince Edward Island PE Quebec QC Saskatchewan SK Yukon YT Cuba Provincias Cuba Provincias Abbreviation Camaguey CG Ciego de Avila CA Cienfuegos CF Ciudad de La Habana CH Granma (Bayamo) GR Guantanamo GT Holguin HO La Habana HA Matanzas MT Municipio Especial Isla de La Juventud IJ Pinar del Rio PR Sancti Spiritus SS Santiago de Cuba SC (Victoria de) Las Tunas LT Villa Clara VC Italy Provinces Italy Provincia Abbreviation Agrigento AG Alessandria AL Ancona AN Aosta/Aoste AO Arezzo AR Ascoli Piceno AP Asti AT Bari BA Belluno BL Benevento BN Bergamo BG Biella BI Bologna BO Bolzano Bolzen BZ Brescia BS Brindisi BR Cagliari CA Caltanissetta CL Campobasso CB Caserta CE Catania CT Catanzaro CZ Chieti CH Como CO Cosenza CS Cremona CZ Crotone KR Cuneo CV Enna EN Ferrara FE Firenze FI Foggia FG Forli FO Frosinone FR Genoa GE Gorizia GO Grosseto GR Imperia IM Isernia IS L'Aquila AQ La Spezia SP Latina LT Lecce LE Livorno LI Lodi LO Lucca LU Macerata MC Mantova MN Massa-Carrara MS Matera MT Messina ME Milan MI Modena MO Napoli NA Novara NO Nuoro NU Oristano OR Padova PD Palermo PA Parma PR Pavia PV Perugia PG Pesaro-Urbino PS Pescara PE Piacenza PC Pisa PI Pistoia PT Pordenone PN Potenza PZ Prato PO Ragusa RG Ravenna RA Reggio de Calabria RC Reggio nell'Emilia RE Rieti RI Rimini RN Roma RM Rovigo RO Salerno SA Sassari SS Savona SV Siena SI Siracusa SR Sondrio SO Taranto TA Teramo TE Terni TR Torino TO Trapani TP Trento TN Treviso TV Trieste TS Udine UD Varese VA Venezia VE Verbania VB Vercelli VC Verona VR Vibo Valentia VV Vicenza VI Viterbo VT Mexico State Mexico State Abbreviation Aguascalientes AGS Baja California Norte BCN Baja California Sur BCS Campeche CAM Chiapas CHIS Chihuahua CHIH Coahuila COAH Colima COL Distrito Federal DF Durango DGO Guanajuato GTO Guerrero GRO Hidalgo HGO Jalisco JAL Mexico MEX Michoacan MICH Morelos MOR Nayarit NAY Nuevo Leon NL Oaxaca OAX Puebla PUE Queretaro QRO Quintana Roo QROO San Luis Potosi SLP Sinaloa SIN Sonora SON Tabasco TAB Tamaulipas TAMPS Tlaxcala TLAX Veracruz VER Yucatan YUC Zacatecas ZAC The Netherlands Province The Netherlands Province Abbreviation Drenthe DR Flevoland FLD Friesland FR Gelderland GLD Groningen GN Limburg LB North Brabant NB North Holland NH Overijssel OV South Holland ZH Utrecht UT Zeeland SLD

# USPS Track & Confirm

Exhibit 3.11.14-9 USPS Track & Confirm This is a snapshot of a USPS Track & Confirm website. At the top of the site it has three tabs English, Customer Service, USPS Mobile. Underneath is the USPS eagle logo and the words USPS.Com. Below that are four more tabs labeled: Quick Tools, Ship a Package, Send Mail, Manage Mail. It says, Track & Confirm followed by a table format showing headings. Under the heading Your Label Number is 0.0.1.0.3.09.0.0.0.1.6.3.7.2.1.5.4.4nk you , The next column heading is Service and under that it says First-Class-Mail. The third column heading reads Status of your Item and under that it says Delivered. Under that it reads Arrival at unit and then under that it reads acceptance. The fourth column heading is Date and Time and underneath it is March 25, 2026, 10:48 AM. Below that it reads March 24, 2026, 10:48 AM. and under that it says March 23, 2026, 11:35 AM.Below that is the option to Check on Another Item and below that it says, What's your label (or receipt) number, then there is a button labeled FIND. Please click here for the text description of the image.

# Acronyms and Abbreviations

Exhibit 3.11.14-10 Acronyms and Abbreviations Acronyms and Abbreviations Acronyms and Abbreviations Definition AM Accounts Management AMRH Accounts Maintenance Research APO Army Post Office AUR Automated Underreporter BBTS Batch Block Tracking System BMF Business Master File C&E Code and Edit CCC Computer Condition Code CDP Collection Due Process CI Criminal Investigation CII Correspondence Imaging Inventory C/O Care of CP Computer Paragraph CSPC Cincinnati Submission Processing Center DLN Document Locator Number DPO Diplomatic Post Office DPO Document Perfection Operation EEFax Enterprise Electronic Fax E-File Electronically File e.g., For Example EIN Employee Identification Number EOCU EO Compliance Unit ERS Error Resolution System etc., Et Cetera Exam Examination FAX Facsimile FPO Fleet Post Office FRP Frivolous Return Program FTF Failure To File GPP General Purpose Programming ICS Integrated Collection System ID Identification or Identity IDRS Integrated Data Retrieval System ISRP Integrated Submission and Remittance Processing IMF Individual Master File IRC Internal Revenue Code IRS Internal Revenue Service LB&I Large Business and International MeF Modernized Electronic Filing MFT Master File Transaction MMDDYY Month Month Day Day Year Year Mod IEIN Modernized Internet Employer Identification Number NAICS North American Industry Classification System N/A Not Applicable NDC National Distribution Center OC Other Country OID Original Issue Discount OSPC Ogden Submission Processing Center PBA Principal Business Activity PDS Private Delivery Service PTIN Preparer Tax Identification Number P.O. Post Office QSSS Qualified Subchapter S Subsidiary R&C Receipt and Control Rec'd Received Rev. Proc. Revenue Procedure RO Revenue Officer RPC Return Processing Code RRA98 Restructuring and Reform Act of 1998 SB/SE Small Business & Self-Employed SCAMPS Service Center Automated Mail Processing System SCRIPS Service Center Recognition Image Processing System SERP Servicewide Electronic Research Program (SERP) SFR Substitute for Return SLA Service Level Agreement SOI Statistics of Income SP Submission Processing SSN Social Security Number TAS Taxpayer Advocate Service TBOR Taxpayer Bill of Rights TC Transaction Code TE Tax Examiner TE/GE Tax Exempt & Government Entities TETR Telephone Excise Tax Refund TIN Taxpayer Identification Number TPE Tax Period Ending TS Taxpayer Services TY Tax Year UCC Uniform Commercial Code U.S. United States USPS United States Postal Service ZIP Zone Improvement Plan