IRM 3.21.3 — Individual Income Tax Returns

# Part 3. Submission Processing

Chapter 21. International Returns and Documents Analysis Section 3. Individual Income Tax Returns 3.21.3 Individual Income Tax Returns Manual Transmittal October 29, 2025 Purpose (1) This transmits revised IRM 3.21.3, International Returns and Documents Analysis - Individual Income Tax Returns. Material Changes (1) IRM 3.21.3.1.3 - Updated subsection title. (2) IRM 3.21.3.1.4 - Updated subsection title. (3) IRM 3.21.3.1.5 - Updated subsection title. (4) IRM 3.21.3.3.1 - (3) - 1st row, Then column, changed box 24 to 22. IPU 25U0053 issued 01-14-2025. Added (4) containing instructions if Form 1042-S is attached to Form 1040-NR. (5) IRM 3.21.3.3.4(7) - Removed language that is not applicable. (6) IRM 3.21.3.3.5 - Updated definitions. (7) IRM 3.21.3.4(3) - For program 46180, changed designation from prior year to current year. For program 46182, changed designation from current year to prior year. IPU 25U0053 issued 0-14-2025. (8) IRM 3.21.3.5.4(4) - Added "of the return" to the Received Date in the 1st bullet. IPU 25U0431 issued 04-08-2025. (9) IRM 3.21.3.6.2(6) - Reorganized the sentence and added a Note. IPU 25U0411 issued 03-31-2025. (10) IRM 3.21.3.6.5(2) - Table, Row 1, 2nd bullet, added Notation of "Form 2555" . IPU 25U0398 issued 03-20-2025. (11) IRM 3.21.3.7.2(11) - Updated transcribed forms and schedules. (12) IRM 3.21.3.7.4(5) - d) - Form 1040-PR line 7 changed to line 6. IPU 25U0053 issued 01-14-2025. e) - Form 1040-SS line 6 changed to line 7. IPU 25U0053 issued 01-14-2025. (13) IRM 3.21.3.7.7(2) - Updated Computer Condition Code (CCC) editing locations. (14) IRM 3.21.3.7.8(2) - Updated Form Processing Code location for Form 1040 and Form 1040-NR per new form revisions. Added Note for prior year editing. (15) IRM 3.21.3.7.9 - Updated Return Processing Code definition. (16) IRM 3.21.3.8 - (2) - Updated Received Date Locations. (3) - Deleted if required. IPU 25U0053 issued 01-14-2025. (9) - Added Enterprise Electronic Fax (EEFax) information. (17) IRM 3.21.3.8.2 - (1) Note - Changed the phone number in the Note. IPU 25U0197 issued 02-10-2025. (1) Note - Corrected International Phone Number per feedback from Disaster Program Office. (18) IRM 3.21.3.8.4(3) - 1st row, changed date from "061725" to "061625" in both columns. IPU 25U0053 issued 01-14-2025. (19) IRM 3.21.3.9 - (1) - Deleted Reminder. Dependency Status Indicator (DSI) is no longer a T-Line. (3) - Corrected number of Form 1040-SS pages. (20) IRM 3.21.3.9.1 - (11) - Deleted the rest of the sentence after the comma referring to the other box. IPU 25U0197 issued 02-10-2025. (13) - Replaced reference to local procedures with specific instructions. (21) IRM 3.21.3.9.1.1(9) - Added a Caution to not separate/detach Form 1040 when it's for the same year as Form 1040-X. (22) IRM 3.21.3.10(1) - Added a "Note" about which boxes to mark when using Form 9143. IPU 25U0431 issued 04-08-2025. (23) IRM 3.21.3.12.4(1) - Added Note to edit U.S. Territory addresses the same way as domestic addresses. (24) IRM 3.21.3.12.4.1 - (1)d - Added Reminder to edit U.S. Territory addresses the same was as domestic addresses. (3) a)Caution - Changed any to all. IPU 25U0053 issued 01-14-2025. a)Caution - Changed or to and. IPU 25U0273 issued 02-26-2025. (25) IRM 3.21.3.12.6(3) - Changed "no" to if all the following are missing. IPU 25U0197 issued 02-10-2025. (26) IRM 3.21.3.15(2) - Added information regarding new non-transcribed checkboxes. (27) IRM 3.21.3.15.1.20 - Added subsection for new line 13b. (28) IRM 3.21.3.15.1.29 - (2) - Added Form W-2 GU to Guam and Form W-2 CM to CNMI. IPU 25U0398 issued 03-20-2025. (5) - Deleted the last row of the table. IPU 25U0053 issued 01-14-2025. (8)a) - Reworded Exception. IPU 25U04031 issued 04-08-2025. (14)a) - Deleted Note that is no longer relevant to ongoing processing. (29) IRM 3.21.3.15.1.32(5) - Revised the instructions. IPU 25U0398 issued 03-20-2025. (30) IRM 3.21.3.15.1.34 - Added subsection for new line 30. (31) IRM 3.21.3.16.4(2) - Added a Reminder and a Note after the table. IPU 25U0411 issued 03-31-2025. Added Notes regarding Chile and Hungary. (32) IRM 3.21.3.16.7(2) - Added Reminder regarding exempt countries and Notes regarding Chile and Hungary. (33) IRM 3.21.3.16.9(1) - Added tax year clarification for Form 1099-NEC and Form 1099-MISC tax years in If/Then, row 13 and 14. Added Notes regarding Chile and Hungary to row 14. (34) IRM 3.21.3.16.16(1) - Added Note with instruction when not to correspond. (35) IRM 3.21.3.17 - Added subsection for new Schedule 1-A. (36) IRM 3.21.3.18(3) - Updated Schedule 2 T-Lines. (37) IRM 3.21.3.19.7.2 - Added subsection for Schedule 3, line 6g. (38) IRM 3.21.3.19.7.3(1) - Updated correspondence instructions. (39) IRM 3.21.3.18.14 - Deleted Reserved Schedule 3, line 13b subsection. (40) IRM 3.21.3.19.15 - (1) - Deleted the 1st row from the table for Form 8689. IPU 25U0053 issued 01-14-2025. (2) - Added FPC "F" instructions. (41) IRM 3.21.3.23 - (1) - Added PAL indicator to T-Lines. (2) c) - Added a Note about multiple Schedules C. IPU 25U0431 issued 04-08-2025. (42) IRM 3.21.3.27(1) - Updated Schedule F T-Lines. (43) IRM 3.21.3.38(1) - Updated Form 5329 T-Lines. (44) IRM 3.21.3.42.2 (2) - 2nd bullet, corrected the punctuation in the sentence. IPU 25U0398 issued 03-20-2025. (45) IRM 3.21.3.42.5 - (1) - Added waiver countries for TY24. IPU 25U0355 issued 03-13-2025. (1) - Added a Note after the table. IPU 25U0398 issued 03-20-2025. (1) - Moved waiver countries for TY24 to prior year. (8) - Row 6, added a Note to the last column. IPU 25U0431 issued 04-08-2025. (46) IRM 3.21.3.45 - Updated Form 8839 T-Lines. (47) IRM 3.21.3.47(1) - Updated Form 8814 T-Lines. (48) IRM 3.21.3.50(1) - Updated Schedule 8812 T-Lines. (49) IRM 3.21.3.58 - Moved Form 5405 to prior year subsection 3.21.3.87.12. (50) IRM 3.21.3.65 - Moved Form 8910 to prior year subsection 3.21.3.87.13. (51) IRM 3.21.3.65.1 - Revised (1) and deleted (2) and the Note. IPU 25U0398 issued 03-20-2025. (52) IRM 3.21.3.65.2(1) - Added 2 new rows to the table for .20 and .75. IPU 25U0053 issued 01-14-2025. Added 2 new rows to the table. IPU 25U0197 issued 02-10-2025. (53) IRM 3.21.3.70(1) - Updated Form 5695 T-Lines. (54) IRM 3.21.3.75(1) - Updated Form 4136 T-Lines. (55) IRM 3.21.3.79.1.1(1) - b), Added "and Form 4227" . IPU 25U0053 issued 0-14-2025. (56) IRM 3.21.3.79.1.2 (1) - Caution, Added "Schedule 3, line 13z or on" . IPU 25U0053 issued 01-14-2025. (2) - Added "Schedule 3, line 13z or on" . IPU 25U0053 01-14-2025. (3) - Added "Schedule 3, line 13z or" . IPU 25U0053 issued 01-14-2025. (57) IRM 3.21.3.80.1.1(1) - b), Added "and Form 4227" . IPU 25U0053 issued 01-14-2025. (58) IRM 3.21.3.80.2 - (4) - In the Reminder, changed itemized to standard. IPU 25U0197 issued 02-10-2025. (5) - Added paragraph and instructions when NOT to correspond for Schedule A. (7) - Deleted c) to "Edit the SSN" . IPU 25U0431 issued 04-08-2025. (59) IRM 3.21.3.81 - (1) - Added a second sentence. IPU 25U0398 issued 03-20-2025. (4) - Added paragraph regarding non-transcribed checkboxes. (7) - Changed paragraph reference from 11 to 14. IPU 25U0411 issued 03-31-2025. (60) IRM 3.21.3.81.1 - (1) - Added Line 10 to the T-Line column. IPU 25U0053 issued 01-14-2025. Added second sentence to state that the line numbers are for current year. IPU 25U0197 issued 02-10-2025. Added Line 6. IPU 25U0197 issued 02-10-2025. Deleted Line 11a. IPU 25U0197 issued 02-10-2025. Line 11b, added TY24 and deleted TY21, TY22 and TY 23. IPU 25U0197 issued 02-10-2025. Deleted dotted portion of Line 12. IPU 25U0197 issued 02-10-2025. Deleted 2nd sentence. IPU 25U0398 issued 03-20-2025. Updated Page 1 T and T Compute Lines per new form revision. (2) - Updated Page 2 T and T Compute Lines. (3) - Added table for Page 3 T and T Compute Lines. (61) IRM 3.21.3.81.3.2(3) - Changed TY23 to TY 24. IPU 25U0053 issued 01-14-2025. Changed TY24 to TY23. IPU 25U0197 issued 02-10-2025. Updated Dependent editing procedures. (62) IRM 3.21.3.81.3.2.1 - Updated Dependent editing procedures. (63) IRM 3.21.3.81.3.2.3 - Updated Child Tax Credit Indicator editing. (64) IRM 3.21.3.81.3.2.4 - Added subsection for Form 1040-SS Dependent Relationship Code. (65) IRM 3.21.3.81.3.3(3) - Exception, changed line 6 to line 7. IPU 25U0053 issued 01-14-225. Exception, changed line 7 to line 6. IPU 25U0197 issued 02-10-2025. (66) IRM 3.21.3.81.3.6 - Added a new subsection for Line 6. IPU 25U0197 issued 02-10-2025. Updated instructions per new form revision. IPU 25U0398 issued 03-20-2025. (67) IRM 3.21.3.81.3.7 - Added subsection for line 6 TY24. (68) IRM 3.21.3.81.3.8 - Added subsection for Line 6e, Total Tax. (69) IRM 3.21.3.81.3.11 - Swapped Line 9 and Line 11b instructions based on form change. (70) IRM 3.21.3.81.3.13 - Added a new subsection for Credit for Qualified Sick and Family Leave Wages from Schedule(s) H for Leave Taken Before April 1, 2021 (TY23 Line 11a). IPU 25U0197 issued 02-10-2025. (71) IRM 3.21.3.81.3.14 Added a new subsection for Credit for Qualified Sick and Family Leave Wages from Schedule(s) H for Leave Taken Before April 1, 2021 (TY23 Line 11b). IPU 25U0197 issued 02-10-2025. (72) IRM 3.21.3.81.3.15(1) - Added "a" to line 11. IPU 25U0053 issued 01-14-2025. (73) IRM 3.21.3.81.3.16 - Added Line 11b to the title. IPU 25U0053 issued 01-14-2025. Swapped Line 9 and Line 11b instructions based on from change. (74) IRM 3.21.3.81.3.21(1) - Changed line 6 to line 7. IPU 25U0431 issued 04-08-2025. (75) IRM 3.21.3.83(6) - Added FPC "F" instructions. (76) IRM 3.21.3.83.3 - Added title. (77) IRM 3.21.3.83.12(2) - Notes, changed "SPBs" to "SBPs" . IPU 25U0053 issued 01-14-2025. (78) IRM 3.21.3.84.2(3) - Deleted Line 10c and Line 12b. IPU 25U0197 issued 02-10-2025. Updated Form 1040-NR T-Lines. (79) IRM 3.21.3.84.7.2 - Added subsection for Form 1040-NR Dependent Relationship Code. (80) IRM 3.21.3.84.8.14 - Updated per new Form 1040-NR revision. (81) IRM 3.21.3.84.13.3 - (1) - Added partially masked (e.g. XXX-XX-1234). IPU 25U0053 issued 01-14-2025. (2) - Revised the instructions. IPU 25U0053 issued 01-14-2025. Added a new (2) and deleted (3). IPU 25U0197 issued 02-10-2025. (2) - Added Exception. (82) IRM 3.21.3.84.13.8(1) - Revised wording. IPU 25U0398 issued 03-20-2025. Added CTC checkbox. IPU 25U0411 issued 03-31-2025. Changed the wording from "at least 3" to "there are" . IPU 25U0411 issued 03-31-2025. (83) IRM 3.21.3.84.19.4(1) - Updated Exception. (84) IRM 3.21.3.84.20.2(1) - Note, corrected 6521 to 6251. IPU 25U0053 issued 01-14-2025. (85) IRM 3.21.3.84.21.16(2) - Table, deleted the 1st row. IPU 25U0053 issued 01-14-2025. (86) IRM 3.21.3.84.22.7(1) - 5th bullet, 2nd Note - Added "Do not adjust line 8" . IPU 25U0431 issued 04-08-2025. (87) IRM 3.21.3.85.3 - (1) - Reworded the first sentence. IPU 25U0431 issued 04-08-2025. (3) - 2nd bullet/3rd bullet, added even if the taxpayer indicates present in the U.S. for 0 days. IPU 25U0053 issued 01-14-2025. (3) - Changed "reviewed" to "received" . IPU 25U0197 issued 02-10-2025. (4) - Added -"Form 8854" is not attached. IPU 25U0053 issued 01-14-2025. (88) IRM 3.21.3.85.4(12) - Revised the instruction. IPU 25U0053 issued 01-14-2025. Added "Form 1040-NR" after line 23a. IPU 25U0197 issued 02-10-2025. (89) IRM 3.21.3.85.5(7)b) - Changed "All" to "Multiple" in the last 2 rows of the table. IPU 25U0411 issued 03-31-2025. (90) IRM 3.21.3.86.12.2.3(3) - Added, (TY22 and prior and Schedule SE for TY23). IPU 25U0053 issued 01-14-2025. Deleted TY22 and prior and Schedule SE for TY23, and changed Schedule SE to Part V. IPU 25U0197 issued 02-10-2025. Exception, changed line 7 to line 6. IPU 25U0197 issued 02-10-2025. Deleted (TY22 and prior and Schedule SE for TY23) and changed Schedule SE to Part V at the end of the sentence. IPU 25U0398 issued 03-20-2025. (91) IRM 3.21.3.86.3(3) - Added a Note to (3)b. IPU 25U0197 issued 02-10-2025. (92) IRM 3.21.3.86.7.4 - Deleted (1). Added A Note to (1) and (2). IPU 25U0053 issued 01-14-2025. (93) IRM 3.21.3.86.7.6(1) - Deleted the 1st bullet. IPU 25U0053 issued 01-14-2025. (94) IRM 3.21.3.86.10 - Added subsection for Prior Year Form 3800 instructions. (95) IRM 3.21.3.86.11 - (1) - Added TY24 amount. (3) - Added waiver countries for TY23 to the prior year section. IPU 25U0355 issued 03-13-2025. Deleted (3) for it being a duplicate of (4). IPU 25U0431 issued 04-08-2025. (96) IRM 3.21.3.86.13 - Added subsection for Form 5405. (97) IRM 3.21.3.86.14 - Added subsection for Form 8910. (98) IRM 3.21.3.86.15 - (1) - Added the IRM reference for TY23 or later. IPU 25U0197 issued 02-10-2025. (6) - Changed paragraph 11 to 14. IPU 25U0053 issued 01-14-2025. (8) - Added "sent/enviado" , "accepted/aceptado" . (99) IRM 3.21.3.86.15.2.2 - (3)b) - Changed line 10 to line 9. IPU 25U0197 issued 02-10-2025. (3)c) - Added "even if blank" after Part II. IPU 25U0197 issued 02-10-2025. (4)b) - Changed line 9 to line 10. IPU 25U0053 issued 01-14-2025. Changed line 10 to line 9. IPU 25U0197 issued 02-10-2025. (4)c) - Added "even if blank" after Part II. IPU 25U0197 issued 02-10-2025. (100) IRM 3.21.3.86.15.2.11(1) - Changed "TY23" to "TY22" . IPU 25U0197 issued 02-10-2025. (101) IRM 3.21.3.86.15.2.12(1) - Changed "TY23" to "TY22" . IPU 25U0197 issued 02-10-2025. (102) IRM 3.21.3.86.15.6.1 - Added new (4) with instructions to correspond. IPU 25U0053 issued 01-14-2025. (103) IRM 3.21.3.86.15.6.9(1) - Added "Form 1040-PR" . IPU 25U0197 issued 02-10-2025. (104) IRM 3.21.3.86.16.4 - Added prior year instructions to X dependents. (105) IRM 3.21.3.86.16.6 - (2)b) - Updated verbiage. (4) - Added a Note for an amount on line 10c. IPU 25U0398 issued 03-20-2025. (106) IRM 3.21.3.86.16.8 - (3) - Table, Revised row 1 and row 2 "And" and "Then" columns. Added new row 3. IPU 25U0398 issued 03-20-2025. (13) - Table, 2nd bullet changed yo to you. IPU 25U0053 issued 01-14-2025. (107) IRM 3.21.3.86.16.12 - Deleted (2). IPU 25U0053 issued 01-14-2025. (108) IRM 3.21.3.86.17 - (2) - a/b), deleted "Schedule 1 through Schedule 3 or" . IPU 25U0053 issued 01-14-2025. (4) -Table, Line 8 Changed the Covert By/To: from Line 10c to Schedule 1, line 8r. IPU 25U0398 issued 03-20-2025. (109) IRM 3.21.3.86.10 - Added subsection for prior year Form 3800. (110) IRM 3.21.3.86.16.22(2) - Added Chile to the table and added Notes regarding Chile, Hungary and Russia. (111) Exhibit 3.21.3-1 - Form 13844, updated the "Action" requirements from "KSPC" to "FSC" . IPU 25U0298 issued 03-03-2025. Attachment Guide, made changes to the following Form/Documents: IPU 25U0398 issued 03-20-2025. LTR 4087C Form W-7A Form 2848 Form 3520-A Form 4506 and Form 4506-T Form 5495 Form 5564 Form 7004 Form 8316 Form 8379 Form 8611 Form 8621 Form 8689 Form 8854 Form 8862/8862(SP) Form 8898 Deleted Form 2031 Form 3911 - Added No and changed the Action Required for Yes and "No" . Updated routing instructions for Form 3911 and Form 5564. Added instructions for Form 5564-A. IPU 25U3591 issued 09-08-2025. Added Form 1040-NR Schedule P. Added Form 1062. (112) Exhibit 3.21.3-2 - Where Income is Reported, changed Page 1 to Form 1040-NR for Rows 04 - 09, 15 - 16, 18 - 22, 24, 33 - 38, 42-43, 51 - 54, 56. IPU 25U0431 issued 04-08-2025. Row 31 - Revised the title. Row 41 - Changed "Guaranteed" to "Guarantee" . Row 51 - Changed "of" to "on" . Row 56 - Added, or "Schedule NEC, line 1c" . Row 57 - Changed Schedule 1, line 5 to Form 1040-NR, line 3b. Row 58 - Changed Schedule 1, line 5 to Schedule 1, line 8z. (113) Exhibit 3.21.3-3 - Added RPC P. Added RPC W. Added Notes for Chile and Hungary to RPC "S" . (114) Revised the Internal Revenue Manual (IRM), where necessary for the following types of editorial changes: Changed "Possession" to "Territory" per IRS Publication 570. Plain language and editorial updates to improve readability. Dates, tax period and years. Defined income to include foreign and U.S. income. Updated line numbers per new form revisions. Updated IRM throughout to reflect current processing. Updated links. Effect on Other Documents IRM 3.21.3, dated October 30, 2024 (effective January 1, 2025), is superseded. This IRM incorporates the following IRM Procedural Updates (IPUs), issued January 14, 2025 through April 8, 2025: 25U0053, 25U0197, 25U0273, 25U0298, 25U0355, 25U0398, 25U0411, 25U0431. Audience Taxpayer Services, Code and Edit Tax Examiners Effective Date (01-01-2026) Scott Wallace Director, Submission Processing Taxpayer Services

# Program Scope and Objectives

3.21.3.1 (10-30-2024) Program Scope and Objectives Purpose: The Document Perfection Operation, Code & Edit unit, prepares paper returns for processing by reviewing and editing the documents with specialized processing codes for use downstream. This Internal Revenue Manual (IRM) provides instructions for coding and editing international individual income tax returns for transcription and validation. IRM 3.11.3, Individual Income Tax Returns, must be used for ALL International returns. When specific international processing instructions are not provided in IRM 3.21.3, tax examiners will use the general processing instructions in IRM 3.11.3. Audience: Tax examiners in the Taxpayer Services Division (TS), Austin Service Center, Code & Edit Units are the primary users of this IRM. Policy Owner: The Director of Submission Processing is responsible for the policies in this IRM. Program Owner: The Code & Edit/ERS IMF Section of the Return Processing Branch of Submission Processing is responsible for the procedures and all updates related to this IRM. Primary Stakeholders: Submission Processing (SP). Program Goals: To timely review and edit all returns received in Code & Edit (C&E).

# Background

3.21.3.1.1 (10-30-2024) Background This section of the Internal Revenue Manual (IRM) provides instructions for coding and editing individual income tax returns for transcription and validation. Special codes are used to perform specific functions. Editing is necessary because many returns are incomplete, contain invalid or misplaced entries, or are computed incorrectly. This IRM contains instructions for processing international returns using the following form types: Form 1040, U.S. Individual Income Tax Return Form 1040 (sp), Declaración de Impuestos de los Estados Unidos Sobre los Ingresos Personales Form 1040-SR, U.S. Tax Return for Seniors Form 1040-SR (sp), Declaración de Impuestos de los Estados Unidos para Personas de 65 Años de Edad o Más Form 1040-A, U.S. Individual Income Tax Return (TY17 and prior) Form 1040-EZ, Income Tax Return for Single and Joint Filers with No Dependents (TY17 and prior) Form 1040-NR, U.S. Nonresident Alien Income Tax Return Form 1040-NR (sp), Declaración de Impuestos sobre los Ingresos de Extranjeros No Residentes de los Estados Unidos Form 1040-NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents (TY19 and prior) Form 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico) Form 1040-SS (sp), Declaración de Impuestos Federal sobre el Trabajo por Cuenta Propia (Incluyendo el Crédito Tributario Adicional por Hijos para Residentes Bona Fide de Puerto Rico) Form 1040-PR, Declaración de Impuestos Federal sobre el Trabajo por Cuenta Propia (Incluyendo el Crédito Tributario Adicional por Hijos para Residentes Bona Fide de Puerto Rico) (TY22 and prior) Supporting forms and schedules for the forms listed above Reminder: IRM 3.11.3, Individual Income Tax Returns, must be used to process returns when specific instructions are not provided in this IRM.

# Authority

3.21.3.1.2 (01-01-2021) Authority Authority for these procedures is found in the following sections of the Internal Revenue Code and their corresponding Treasury regulations: IRC 6201(a) IRC 6213(b) IRC 6402(a) IRC 6511 Policy Statements for Submission Processing are contained in IRM 1.2.1, Servicewide Policy Statements.

# Roles and Responsibilities

3.21.3.1.3 (10-29-2025) Roles and Responsibilities The Submission Processing Director is responsible for monitoring operational performance for the Service Center. The Document Perfection Operations Manager is responsible for monitoring operational performance for the Code and Edit operation. The Code & Edit Team Managers and Leads are responsible for performance monitoring and ensuring tax technicians have the tools to perform their duties. The tax technicians are responsible for following the instructions contained in this IRM, including all IRM procedural updates (IPU) posted to the SERP (Servicewide Electronic Research Program) website.

# Program Control

3.21.3.1.4 (10-29-2025) Program Control Program Reports: The Monitoring Section under Submission Processing Program Management/Process Assurance monitors the Code & Edit reports. Program Effectiveness: The program goals are measured by the following reviews: Embedded Quality Submission Processing (EQSP) Balanced Measures Managerial Reviews Annual Review: The processes included in this manual are reviewed annually to ensure accuracy and promote consistent tax administration.

# Terms and Acronyms

3.21.3.1.5 (10-29-2025) Terms and Acronyms See Exhibit 3.21.3-20 for the glossary of frequently used terms.

# Related Resources

3.21.3.1.6 (01-01-2018) Related Resources International Job Aid 2513-701, Coding and Editing International Income Tax Returns, was developed as a reference guide for this manual. This manual refers the tax examiner to clarifying information or exhibits in the Job Aid, where appropriate. When conflict between any referenced material and the IRM instructions occurs, the IRM instructions take precedence.

# IRM Deviations

3.21.3.2 (01-01-2016) IRM Deviations IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2, Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevated through appropriate channels for executive approval.

# International Returns

3.21.3.3 (01-01-2024) International Returns International tax returns are identified by the presence of one of the following: An address outside the 50 United States and Washington D.C. Exception: This does not include APO(Army/Air Post Office)/DPO (Diplomatic Post Office)/FPO (Fleet Post Office) addresses Form 390 (American Samoa), American Samoa Individual Income Tax Return Form 482.0/Formulario 482 (Puerto Rico), Planilla de Contribución Sobre Ingresos de Individous Form 1040CM (CNMI), Commonwealth of the Northern Mariana Islands Territorial Individual Income Tax Form 1040 GUAM, Guam Individual Income Tax Return Form W-2AS, American Samoa Wage & Tax Statement Form W-2CM, Wage & Tax Statement Form W-2GU, Guam Wage & Tax Statement Form W-2VI, U.S. Virgin Islands Wage& Tax Statement Form 499R-2/W-2PR, (Puerto Rico Withholding) Form 1040-NR, U.S. Nonresident Alien Income Tax Return Form 1040-NR-EZ, U.S. Income Tax Returns for Certain Nonresident Aliens With No Dependents Form 1040-PR, Declaracion de Impuestos Federal sobre el Trabajo por Cuenta Propia (Incluyendo el Credito Tributario Adicional por Hijos para Residentes Bona Fide de Puerto Rico) Form 1040-SS, U.S. Self-Employment Tax Return Form 1040-SS (sp), Declaración de Impuestos Federal sobre el Trabajo por Cuenta Propia (Incluyendo el Crédito Tributario Adicional por Hijos para Residentes Bona Fide de Puerto Rico) Form 1042-S, Form SSA-1042S, or Form RRB-1042S Form 2555, Foreign Earned Income Form 2555-EZ, Foreign Earned Income Exclusion Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI) Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons Form 8689, Allocation of Individual Income Tax to the U.S. Virgin Islands Form 8804, Annual Return for Partnership Withholding Tax (Section 1446) Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax Form 8813, Partnership Withholding Tax Payment Voucher (Section 1446) Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) Form 8854, Initial and Annual Expatriation Information Statement Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Territory Form 14653, Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures Form 14654, Certification by U.S. Person Residing in the United States for Streamlined Domestic Offshore Procedures Dual-Status (any of the following): - Form 1040 and Form 1040-NR filed together for the same tax year Note: Do not treat as Dual-Status if Form 1040 is filed with 1040-NR Schedule OI attached. - "Dual- Status" or "D/S" indicated on the return - Taxpayer claims part year residence and part year non-residence. Caution: Always leave Form 1040 and Form 1040-NR for the same taxpayer together. Nonresident Alien (NRA): Either primary or both taxpayers are Nonresident Aliens Exception: Do not treat as a nonresident alien if the primary taxpayer is a Nonresident Alien (NRA) without a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) and the secondary taxpayer has an SSN/ITIN and is reporting income. International Tax Treaty: taxpayer indicating exemption or exclusion of tax and/or income due to an International Tax Treaty Exception: Do not treat as international if the taxpayer claims exemption due to an American Indian treaty and no other international condition exists. Treaty Trader Fulbright Grantee IRC 871, IRC 893, IRC 911, IRC 913, IRC 931, IRC 932, IRC 933, IRC 934 or IRC 935 is notated anywhere on the return Notation of "Streamlined" on the return or other Streamlined certification "Relief for Certain Former Citizens" , "Relief" , "Expat" , "FAQ 24" , "FAQ 25" , or something similar is written on return and/or attachments Copy of Certificate of Loss of Nationality (CLN) is attached Taxpayer specifically mentions "Relief" , "Former Citizen" , "Expatriate process" , "FAQ 24" , "FAQ 25" , or something similar in an attached letter. Caution: If none of the International conditions listed above are present, consider it a domestic return and process it accordingly. If a return has any of the following characteristics and does not have an LB&I stamp indicating LB&I has already reviewed it, route the return to Stop 4301 AUSC: "Relief for Certain Former Citizens", "Relief", "Expat", "FAQ 24", "FAQ 25", or something similar is written on return and/or attachments. Form 8854 is attached. Copy of Certificate of Loss of Nationality (CLN) is attached. Taxpayer specifically mentions "Relief", "Former Citizen", "Expatriate process", "FAQ 24", "FAQ 25", or something similar in an attached letter. Form 8898 is attached. Do not treat returns that convert income paid in foreign currency to U.S. currency as international returns unless additional international criteria are present. Example: Canadian dollars converted to U.S. dollars If a numbered return assigned international File Location Code (FLC) 20 or 21 does not meet the definition of an international return, edit Action Code "610" to have a new Document Locator Number (DLN) assigned.

# Form 1042 and Form 1042-S

3.21.3.3.1 (10-29-2025) Form 1042 and Form 1042-S Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons and Form 1042-S, Foreign person's U.S. Source Income Subject to Withholding are used by withholding agents to report tax withheld at the source on certain income paid to foreign persons (nonresident alien individuals, foreign partnerships, foreign corporations or foreign trusts and estates) that is not effectively connected with the conduct of a trade or business in the United States. Form 1042-S is a withholding document that identifies, by type, income that is subject to U.S. tax withholding and that is paid to nonresident aliens by U.S. payers. See Exhibit 3.21.3-2, Form 1042-S Income Codes, to determine where the provided Income Code is to be reported on Form 1040-NR. If Form 1042-S is attached to Form 1040: If And Then Refund return and the only income is from the Form 1042-S Both are true: Taxpayer does not state they are a U.S. resident alien, and Taxpayer does not provide a copy of their resident alien card. Correspond for the filer's U.S. status using Form 9143, box 22. Refund return and the only income is from the Form 1042-S Either is true: Taxpayer states they are a U.S. resident alien, or Taxpayer does provide a copy of their resident alien card. Delete Form 1042-S withholding from line 25d. Edit Form 1042-S withholding to the dotted portion of line 33. Worldwide income (i.e., foreign and U.S. source income) is reported or the return is other than a refund Delete Form 1042-S withholding from line 25d. Edit Form 1042-S withholding to the dotted portion of line 33. If Form 1042-S is attached to Form 1040-NR and both of he following apply, edit the income to the appropriate line Income has not been reported on Form 1040-NR, page 1, Schedule 1, page 1, or Schedule NEC, and Income should be reported on Form 1040-NR, page 1, Schedule 1, page 1, or Schedule NEC Note: Use Exhibit 3.21.3-2, Form 1042-S Income Codes, to determine if and where income should be reported. Note: If the income can be reported on either Form 1040-NR, page 1 or Schedule 1, page 1, AND Schedule NEC, Schedule NEC will take priority

# International Filers Overview

3.21.3.3.2 (01-01-2023) International Filers Overview Individuals may be expected to file international returns for a variety of conditions. More than one condition may be met by a single taxpayer. Generally: Taxpayers who are treated as resident aliens file Form 1040. Taxpayers who are treated as nonresident aliens file Form 1040-NR. Note: Special filing requirements often apply to U.S. territories. U.S. citizens living/traveling outside of the United States: They are generally required to file U.S. income tax returns on which they must report their worldwide income (income from all sources and foreign and U.S. income). Resident Alien: A foreign individual who meets either the green card test or the substantial presence test for the calendar year. Nonresident Alien: A foreign individual who does not meet either the green card test or the substantial presence test for the calendar year, unless: They choose to be treated as a resident alien for part of the calendar year by making the First-Year Choice (see IRM 3.21.3.3.2 (12), or They are a nonresident married to a U.S. citizen or resident alien. They and their spouse may be able to make a joint election under IRC 6013(g) or (h) to treat the individual as a resident alien for the entire calendar year. See IRM 3.21.3.3.2 (12) and IRM 3.21.3.3.2 (13) below. Green Card Test: The individual is a resident alien once they are issued a Permanent Resident Card, also known as a green card as a lawful permanent resident of the U.S. Lawful permanent residency continues unless revoked or determined to be abandoned. A lawful permanent resident may be treated as a nonresident alien for U.S. income tax purposes if they are both a U.S. resident alien and a resident of a foreign country under its laws. In this situation, the taxpayer would claim treatment as a resident of the foreign country under the tie-breaker rules of an income tax treaty. Substantial Presence Test: The individual is treated as a resident alien for the calendar year if they are physically present for at least: 31 days during the current calendar year; and 183 days during the 3 - year period that includes the current calendar year and 2 calendar years immediately before that, counting: 1) All the days of physical presence in the calendar year, 2) 1/3 of days of physical presence in the first year prior to the current calendar year, and 3) 1/6 of the number of days of physical presence in the second year prior to the current calendar year. Exceptions to the Substantial Presence Test: The following days of presence in the United States do not count for the substantial presence test: Days commuting to work in the United States from a residence in Canada or Mexico if they "commute regularly." They "commute regularly" if they commute to work in the United States on more than 75% of the workdays during a working period in the current year. Days in the United States for less than 24 hours when in transit between two places outside the United States. Days in the United States as a crew member of a foreign vessel engaged in transportation between the United States and a foreign country or a U.S. territory. Note: This exception doesn't apply if otherwise engaged in any trade or business in the United States on those days. Days they intended to leave, but couldn't leave the United States because of a medical condition or medical problem that arose while in the United States. Whether they intended to leave the United States on a particular day is determined based on all the facts and circumstances. Note: See IRM 3.21.3.42.5, Determining Bona Fide Residence and Physical Presence Dates for information on determining physical presence. Days the individual is an "exempt individual." Exempt Individuals for the Substantial Presence Test: An individual is an "exempt individual" if any of the following are true: An individual is temporarily present in the United States as a foreign government-related individual under an A or G visa. Exception: Excludes household staff of a foreign government-related individual present in the United States under an A-3 or G-5 visa. A teacher or trainee temporarily present in the United States under a J or Q visa. See IRM 3.21.3.3.2 (9) and IRM 3.21.3.3.2 (10) for additional information. A professional athlete temporarily present in the United States to compete in a charitable sports event. An individual is not an exempt individual as a teacher or trainee if they were exempt as a teacher, trainee, or student for any part of 2 of the 6 preceding calendar years, unless all are true: The individual was exempt as a teacher, trainee, or student for any part of 3 (or fewer) of the 6 preceding calendar years A foreign employer paid all compensation during the current year They were present in the United States as a teacher or trainee in any of the prior 6 years A foreign employer paid all compensation during each of the preceding 6 years the individual was present in the United States as a teacher or trainee. A student temporarily present in the United States under an F, J, M, or Q visa is not an exempt individual as a student in the current year if they have been exempt as a teacher, trainee, or student for any part of more than 5 calendar years unless both are true: The individual establishes that they do not intend to reside permanently in the United States. They substantially complied with the requirements of their visa. Closer Connection Exception: Individuals who meet the substantial presence test may still be treated as nonresident aliens if all of the following are true: They are present in the United States for fewer than 183 days during the current calendar year They maintain a tax home in a foreign country during the year They have a closer connection to that country than to the United States They timely file Form 8840, Closer Connection Exception Statement for Aliens, claiming to have a closer connection to a foreign country or countries. Note: An individual may not claim a closer connection to a foreign country if they have applied for status as a lawful permanent resident of the United States or have an application pending for adjustment of status. Some tax treaties provide special rules for determining residency. First-Year Choice: A foreign individual who does not meet the green card test or the substantial presence test may be treated as a resident alien for part of a calendar year by making the First-Year Choice. Married to a U.S. citizen or resident alien: A foreign individual who does not meet the green card test or substantial presence test may be able to choose to be treated as a resident alien if the individual is a nonresident alien married to a U.S. citizen or resident alien, the individual and their spouse may be able to make a joint election under IRC 6013(g) or (h). Individuals from a U.S. Territory: American Samoa, see IRM 3.21.3.76. Guam, see IRM 3.21.3.77. Commonwealth of Northern Mariana Islands, see IRM 3.21.3.78. U.S. Virgin Islands, see IRM 3.21.3.79. Puerto Rico, see IRM 3.21.3.80. Effectively Connected Income: Nonresident aliens are taxed on both: U.S. source income if the U.S. tax due has not been fully withheld Income effectively connected with a U.S. trade or business. Tax Treaties: The U.S. has income tax treaties with a number of countries. Under these treaties, nonresident aliens who are residents of the foreign country may be taxed at a reduced rate or exempt from U.S. income taxes on certain types of income from sources in the United States. An individual is a resident of a foreign country under an income tax treaty if they are treated as a resident under the domestic laws of that country for income tax purposes. Some treaties include requirements beyond citizenship to establish residency for treaty purposes, such as physical presence within the purported residence country. See IRM 3.21.3.83.7 for more information about tax treaties. Dual-Status Taxpayers: An individual who is both a resident alien and nonresident alien in the United States within the same tax year. This usually occurs in the year the taxpayer arrived in or departed from the United States. The taxpayer will submit both Form 1040 and Form 1040-NR with Dual-Status Return written across the top of the return for the tax year. The form filed as the return is based on the taxpayer's residence on the last day of the year. If the individual is a resident of the U.S. on the last day of the tax year, they will file Form 1040 with a statement attached (such as a Form 1040-NR) for the portion of the year that they were a nonresident alien. If the individual is not a resident of the U.S. on the last day of the tax year, they will file Form 1040-NR with a statement attached (such as a Form 1040) for the portion of the year they were a resident alien. U.S. Citizens and U.S. Resident Aliens Living Abroad Who Qualify for the IRC 911 Foreign Earned Income Exclusion: A taxpayer who meets the specific requirements of IRC 911(b)(2)(D) may claim an exclusion of foreign earned income up to the maximum allowed for the tax year and either the housing exclusion or the housing deduction if the taxpayer has a tax home in a foreign country or countries and the taxpayer is one or more of the following: A U.S. citizen who has been a bona fide resident of a foreign country or countries for an uninterrupted period (regardless of physical presence) that includes an entire taxable year A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty with an applicable nondiscrimination clause, and who is a bona fide resident of a foreign country for an uninterrupted period that includes an entire year A U.S. resident alien who has been physically present in a foreign country or countries for 330 days during a period of 12 consecutive months

# Visas Overview

3.21.3.3.3 (01-01-2021) Visas Overview A U.S. visa allows a foreigner to live permanently in the United States (immigrant visa) or travel to the United States on a temporary basis for specific purposes and periods of time (non immigrant visa). See Exhibit 3.21.3-8 for a list of non immigrant visa types. Most, but not all, non immigrant visa holders are taxed as nonresident aliens. A nonresident alien is taxed on all United States source income and on all income that is effectively connected with the conduct of a trade or business in the United States. Unlike U.S. citizens, nonresident aliens are not taxed on non-effectively connected foreign source income. Resident aliens are generally taxed on worldwide income (income from all sources and includes foreign and U.S. income), like U.S. citizens.

# U.S. Income Reporting Requirements Overview

3.21.3.3.4 (10-29-2025) U.S. Income Reporting Requirements Overview United States citizens and resident aliens: They are generally required to file Form 1040 and must report 100% of their worldwide income (income from all sources and includes foreign and U.S. income). Worldwide income is income from ALL sources, including foreign and U.S. income reported on Form 1040, lines 1a through 7a and Schedule 1, lines 1 through 9. For information on identifying resident aliens, see IRM 3.21.3.3.2, International Filers Overview. Nonresident Aliens: They are generally required to file Form 1040-NR to report only: U.S. source income, if the amount of tax withheld didn't satisfy the tax due Income effectively connected with a U.S. trade or business A nonresident alien not otherwise engaged in a U.S. trade or business is not required to report U.S. source income that was withheld properly at the source or any foreign source income that is not effectively connected with a U.S. trade or business, but may file to claim a refund for overpaid taxes. Generally, income received from U.S. payers constitutes U.S. source income. Income received from foreign payers may also constitute U.S. source income in certain circumstances, such as income received for services performed in the U.S. or income received for the use of intangibles in the U.S. Exception: U.S. tax laws exempt nonresident aliens from U.S. taxation on interest earned on certain deposits, which are not effectively connected with a trade or business. U.S. source income is reported on Form 1042-S, Form W-2, Form SSA 1042-S, Form RRB 1042-S, Form 1099 series, Form 8805, Form 8288-A, or a statement of income. U.S. source income which is not effectively connected with a U.S. trade or business is generally taxed at 30% unless a tax treaty exists between the U.S. and the taxpayer's foreign country of residence that either reduces the rate or exempts the income. When Scholarship/Fellowship grant income is paid to a nonresident alien from a country that does not have a tax treaty with the United States: It is not exempted. It is reported on Form 1042-S and attached to the return, if paid by a U.S. payor. It must be reported on Schedule 1, line 8r. If the individual is a "degree candidate," amounts paid to a qualified educational institution for tuition and education related expenses (such as fees, books, supplies, and equipment) may be omitted from Schedule 1, line 8r, so that only part of the scholarship is reported. If the individual is not a "degree candidate," the full amount of the scholarship or fellowship is generally taxable. When Scholarship/Fellowship grant income is paid to a resident alien (because of the substantial presence test) or nonresident alien: It may be fully or partly excluded under a tax treaty. It is reported on Form 1042-S and attached to the return, if paid by a U.S. payor. It must be reported on Schedule 1, line 8r, if taxable, or on Form 1040-NR, line 1k, if exempt by treaty. Schedule OI, Question "L," must be answered. The validity of the tax treaty benefit claimed must be verified.

# Form 1040 with Schedule 1 and Form 2555 or Form 2555-EZ Attached

3.21.3.3.5 (10-29-2025) Form 1040 with Schedule 1 and Form 2555 or Form 2555-EZ Attached For processing instructions, see IRM 3.21.3.42. Form 2555 is valid for all tax years. Form 2555-EZ is valid for TY18 and prior. Form 2555 must be attached if any of the following indicators are on Form 1040 or Schedule 1: IRC 911 exclusion Notation of Form 2555 or Form 2555-EZ Foreign Housing Exclusion on Schedule 1, line 8d Foreign Earned Income Exclusion on Schedule 1, line 8d Foreign Housing Deduction on Schedule 1, line 24j A taxpayer with foreign earned income is entitled to claim the following on Form 2555: Foreign Earned Income Exclusion (Part VII and VIII), and/or Housing Deduction, if housing is paid for with earnings from self-employment (Parts VI and IX), or Housing Exclusion, if housing is paid for with employer-provided amounts, such as wages, housing allowance, etc.(Parts VI and VIII). A U.S. citizen or U.S. resident alien living and working in a foreign country may use Form 2555 to: Exclude a limited amount of their foreign earned income. For TY 2025, this amount is $130,000. See IRM 3.21.3.86.11 (1) for prior year amounts. Claim a housing exclusion or deduction. For TY18 and prior, a U.S. citizen or U.S. resident alien living and working in a foreign country may use Form 2555-EZ if: They have earned wages/salaries in a foreign country below the maximum allowable for the year. See IRM 3.21.3.86.12.1 (1) for prior year amounts. They did not have any income from self-employment. They did not have any business or moving expenses for the year. They are not claiming the housing exclusion or deduction. They are filing a calendar-year return that covers a 12 month period. Foreign earned income is any income earned for personal services performed in a foreign country or countries. For this purpose, a foreign country is any territory under the sovereignty of a government other than the United States. Note: It does not include U.S. territories. Unearned income (such as taxable interest, dividends, capital gains (including capital gain distributions), rents, royalties, pension and annuity income, unemployment compensation, alimony, the taxable part of social security and pension payments) may not be excluded on Form 2555 or Form 2555-EZ. To avoid double taxation, foreign taxes paid on the unearned foreign income can be: Claimed as a credit on Form 1116, or Reported as a deduction on Schedule A, line 6. U.S. citizens and resident aliens living and working outside the United States are generally required to file a U.S. income tax return to report worldwide income (income form all sources and includes foreign and U.S. income). In general, to qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction under IRC 911, taxpayers must be: A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes both an entire tax year and part of the year of the return. A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes both an entire tax year and a part of the year of the return, or A U.S. citizen or resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months that includes part of the year of the return. Note: Due to additional taxpayer requirements, taxpayers may also reference the tax home test, or indicate that the exclusion was prorated based on the qualifying period. Wages paid by the U.S. government to its employees are not foreign earned income, and an individual cannot claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction on those wages.

# U.S. Territories - General Information

3.21.3.3.6 (10-30-2024) U.S. Territories - General Information The following are the five key U.S. Territories: American Samoa (AS) Commonwealth of Northern Mariana Islands (CNMI) Guam (GU) Puerto Rico (PR) United States Virgin Islands (USVI) Special tax rules apply to bona fide residents of these five key territories. The taxpayer must be a United States citizen or resident alien and a bona fide resident of one of AS, CNMI, GU, PR, or the USVI. A bona fide resident of one of these territories is an individual taxpayer who: Does not have a tax home outside the relevant territory. Does not have a closer connection to the United States or to a foreign country. Meets the presence test. To satisfy the presence test for the entire year, the taxpayer must meet ONE of the conditions in the table below. Bona Fide Residence Presence Test for United States Territories Present in the relevant territory for at least 183 days during the tax year. Present in the relevant territory for at least 549 days during the three-year period consisting of the current taxable year and the preceding two tax years, provided the taxpayer was also present in the territory for at least 60 days during each tax year of the three-year period. Present in the United States for no more than 90 days during the tax year. Earned income (pay for personal services performed, such as wages, salaries or professional fees) from the United States of no more than $3,000.00 and was present for more days in the territory than the U.S. during the tax year. No significant connection to the U.S. during the tax year. Significant connections include a permanent home, voter registration, or spouse/minor child in the United States. Note: It is often difficult to determine bona fide residency based on the test above. Therefore, for purpose of processing income tax returns, if the only address on the return or attachments (including Form W-2 type statements) is that of a territory, treat as an indication that the taxpayer is a bona fide resident of that territory. Taxpayers who reside in any U.S. territory are generally not entitled to claim Earned Income Credit (EIC). See IRM 3.21.3.15.1.31. U.S. Service Members / Military Personnel: A service member's "state of legal residence" generally determines their residency for tax purposes. For non-tax purposes, U.S. service members have two types of "residency" "home of record" and "state of legal residence." A service member's "home of record" is the state where they joined the military and it is used to determine certain military benefits (for example, travel allowance back to the state when leaving the military). A service member's "state of legal residence" is their permanent home, the state where they intend to live after leaving the military. All service members declare their state of legal residence with the Department of Defense or equivalent. Note: If an active-duty member of the U.S. Armed Forces state of legal residence is American Samoa or Puerto Rico, their military income is sourced to that territory. They will follow the tax rules for U.S. Government employee wages, regardless of where they were stationed. Under the Service members Civil Relief Act of 2003 (SCRA), if a service member qualifies as a bona fide resident of a U.S. Territory in an earlier tax year, their absence from that territory during the current tax year in compliance with military orders will not affect their status as a bona fide resident. Similarly, being in a territory solely in compliance with military orders will not qualify a service member for bona fide residency status in that territory. Service Members Civilian Spouses / Military Spouses: In accordance with Military Spouses Residency Relief Act of 2009 (MSRRA), civilian spouses of active duty U.S. Service Members can choose to keep their prior residence or domicile for tax purposes. Under the MSRRA, if civilian spouses qualify as bona fide residents of a U.S. territory in an earlier tax year, their absence from that territory during the current year when accompanying the service member spouse who is relocating under military orders will not affect the civilian spouse's status as a bona fide resident. Similarly, being in a territory solely to accompany the service member in compliance with military orders will not qualify the civilian spouse for bona fide resident status in that territory. For additional guidance on when and how MSRRA applies to civilian spouses who are working in or claiming tax residency in a U.S. territory, see Notice 2010-30, Notice 2011-16 and Notice 2012-41.

# Control of International Returns

3.21.3.4 (01-14-2025) Control of International Returns Unnumbered returns are batched according to the type of return. The type of return determines the File Location Code (FLC) where like returns are batched together for processing under a certain program code. International Returns will be assigned the following FLCs: FLC 20 will be assigned to any Form 1040, Form 1040-SR, Form 1040-A (TY17 and prior), or Form 1040-EZ (TY17 and prior) with any International criteria other than U.S. territories, including Form 2555 or Form 2555-EZ (TY18 and prior), and Form 1040-NR or Form 1040-NR-EZ (TY19 and prior). FLC 21 will be assigned to any Form 1040-PR (TY22 and prior) or Form 1040-SS or Form 1040-SS (sp). FLC 21 will be assigned to any Form 1040, Form 1040-SR, Form 1040-A (TY17 and prior), or Form 1040-EZ (TY17 and prior) with any U.S. territory criteria as follows: Territory address in the caption area IRC 931 IRC 932 IRC 933 IRC 934 IRC 935 Form W-2AS, Form W-2GU, Form W-2VI, Form W-2CM, 499R-2/W-2PR Form 4563 Form 5074 Form 8689 Form 8898 Exception: All returns that have a validForm 2555 or Form 2555-EZ (TY18 and prior) must be blocked under FLC 20. The following table contains the international programs worked in Code & Edit (C&E): Program Description 46110 Form 1040 (Form 1040-SR) OTFP Current Year 46112 Form 1040 (Form 1040-SR) Prior Year 46114 Form 1040 (Form 1040-SR) Non Refund Current Year 46115 Form 1040 (Form 1040-SR) - Dual-Status 46116 Form 1040 Conversions 46117 Form 1040 (Form 1040-SR) - Streamlined Filing Compliance Procedures 46120 Form 1040-NR (Effectively Connected) Current Year 46123 Form 1040-SS/Form 1040-SS (sp)- RIVO 46124 Form 1040-NR (Effectively Connected) Prior Year 46127 Form 1040-SS (sp)/Form 1040-PR OTFP Current and Prior Year 46128 Form 1040-SS OTFP Current and Prior Year 46129 Form 1040-NR (Effectively Connected) - Dual-Status 46140 Form 1040-NR (Non-Effectively Connected) Current Year 46142 Form 1040-NR (Non-Effectively Connected) Prior Year 46145 Form 1040-NR (Non-Effectively Connected) - Dual-Status 46160 Form 1040-NR (sp) (Effectively Connected) Current Year 46162 Form 1040-NR (sp) (Effectively Connected) Prior Year 46170 Form 1040 (Form 1040-SR) ITIN Current Year 46172 Form 1040 (Form 1040-SR) ITIN Prior Year 46175 Form 1040 (Form 1040-SR) ITIN - RIVO Current Year 46180 Form 1040-NR (sp) (Non-Effectively Connected) Current Year 46182 Form 1040-NR (sp) (Non-Effectively Connected) Prior Year 46185 Form 1040-NR (sp) (Non-Effectively Connected) - Dual-Status 46220 Form 1040 (Form 1040-SR) Full Paid Current Year 46227 Form 1040-SS (sp) Full Paid Current Year 46228 Form 1040-SS Full Paid Current Year 46810 Form 1040 (sp) (Form 1040-SR (sp)) OTFP Current Year 46812 Form 1040 (sp) (Form 1040-SR (sp)) OTFP Prior Year 46870 Form 1040 (sp) (Form 1040-SR (sp)) ITIN Current Year 46872 Form 1040 (sp) (Form 1040-SR (sp)) ITIN Prior Year 46910 Form 1040 (sp) (Form 1040-SR (sp)) Full Paid

# Misblocked International Returns

3.21.3.4.1 (03-20-2023) Misblocked International Returns All returns in a batch of work must belong in the international program in which they are batched. A misblocked return is a return found in a batch of work of a program in which it does not belong. For unnumbered misblocked returns, remove for rebatching. This includes when an unnumbered return is found in a numbered batch. Note: Rebatch returns that are batched under the wrong FLC. For numbered misblocked returns, do not remove from a batch. Edit Action Code "610" , and attach Form 4227 indicating the action needed. Note: A return with a valid Form 2555 or Form 2555-EZ must be blocked under File Location Code (FLC) 20.

# Uncomputed Returns

3.21.3.4.2 (10-30-2024) Uncomputed Returns An uncomputed return is one filed by a taxpayer who expects the IRS to compute their tax. Do not confuse an uncomputed return with a return where the taxpayer has computed no tax due. An uncomputed return can be identified when: Form 1040, Form 1040-SR, or Form 1040-NR has no entries on Lines 16, 17, 18, 22, 24, 34, 35a, 36, and 37. Form 1040-PR or Form 1040-SS has no entries on lines 7, 13, 14a, 15, and 16.

# General Instructions for All International Forms

3.21.3.5 (01-04-2021) General Instructions for All International Forms The general instructions for all International returns are provided here. The general instructions in this section include: Stamping Tax Examiner (TE) numbers Action Trails Attachments Detached Documents Use Form 1040 instructions when processing Form 1040-SR, 1040(SP), and 1040-SR(SP). Form 1040-A and Form 1040-EZ are historical and must be converted to Form 1040. Form 1040-NR-EZ is valid for TY19 and prior only. Convert all Form 1040-NR-EZ to Form 1040-NR. Form 1040, Schedules 4, 5, and 6 are valid for TY18 only.

# Stamping Tax Examiner (TE) Numbers

3.21.3.5.1 (01-01-2018) Stamping Tax Examiner (TE) Numbers For complete instructions, see IRM 3.11.3.3.1, Stamping Tax Examiner (TE) Numbers.

# Action Trail

3.21.3.5.2 (01-01-2020) Action Trail For all international returns, see IRM 3.11.3.3.5, Action Trail and Job Aid 2513-701 for complete instructions.

# Attachments to Returns

3.21.3.5.3 (01-01-2018) Attachments to Returns Examine all attachments to the return. Leave the attachments with the return unless specifically instructed otherwise. Refer to the Attachment Guide in Exhibit 3.21.3-1 for specific attachment-by-attachment instructions. Research either an attachment or a notation on the return, as appropriate. Note: If an attachment is not found in Exhibit 3.21.3-1, refer to Exhibit 3.11.3-1, Attachment Guide . For additional instructions, see IRM 3.11.3.3.6, Attachments to Return.

# Detached Documents

3.21.3.5.4 (10-29-2025) Detached Documents Always leave an Action Trail on the return when an attachment is removed. Example: When a form or letter is detached from a return, notations such as "Det F1040-X" or "Det TP correspondence" must be made on the tax return. An Action Trail must also be written on the detached document (unless it is an original document). The following must always be edited on all detached items: Tax period of the return in "YYMM" format Form from which detached All of the following must be present or edited on all detached items: Received Date of the return Taxpayer Name(s) Primary/Secondary taxpayer's identification number(s) Taxpayer's address

# International Correspondence Procedures

3.21.3.6 (03-04-2022) International Correspondence Procedures Correspondence is necessary when a return cannot be processed because it is incomplete or illegible. To determine all correspondence issues, you must use both IRM 3.11.3, Individual Income Tax Returns and IRM 3.21.3 and follow line-by-line instructions. When the first correspondence condition is identified, correspond for all missing required forms, schedules, and/or withholding documentation, regardless of correspondence tolerances identified in the line-by-line instructions. Exception: Only correspond for Form 1116, Form 8283, Schedule 8812, and Schedule EIC when the tolerance in line-by-line IRM instructions is met. Do Not Correspond With A Taxpayer More Than One Time. Exception: Code & Edit will correspond a second time if the taxpayer sends back a return with a signature not located in the appropriate Sign Here area under the jurat. The taxpayer's signature must appear in the space provided under the jurat, unless the taxpayer arrowed their own signature to the appropriate place. For additional instructions, see IRM 3.11.3.5.1, General Correspondence Information.

# Correspondence When Sending Returns Back to the Taxpayer

3.21.3.6.1 (10-30-2024) Correspondence When Sending Returns Back to the Taxpayer Signature Issues: A valid signature is an original signature that appears below a jurat statement. Exception: A signature is valid if the taxpayer arrows their own signature to the appropriate place. When the first correspondence condition is identified, correspond for all missing required forms, schedules, and/or withholding documentation, regardless of correspondence tolerances identified in the line-by-line instructions. Exception: Only correspond for Form 1116, Form 8283, Schedule 8812, and Schedule EIC when the tolerance in line-by-line IRM instructions is met. Route secured returns with a missing or invalid signature to Collections. Do not correspond. Returns missing a valid signature(s) will be sent back to the taxpayer via the following: Tax Form Correspondence Type Form 1040 Form 9143 Form 1040-SR Form 9143 Form 1040 (sp) Form 9143 Form 1040-SR (sp) Form 9143 Form 1040-NR Form 9143 Form 1040-NR-EZ (TY19 and prior) Form 9143 Form 1040-A (TY17 and prior) Form 9143 Form 1040-EZ (TY17 and prior) Form 9143 Form 1040-SS Form 13557 (English side) Form 1040-SS (sp) Form 13557 (Spanish side) Form 1040-PR (TY22 and prior) Form 13557 (Spanish side) Exception: Do not mail back numbered returns, disaster returns, Streamlined Filing Compliance Procedures returns, or signed returns missing documentary evidence. Sending other returns back to the taxpayer: The following table provides situations when the return should be sent back to the taxpayer: If Correspondence Issue Is: Then: Misfiled returns: a business (BMF) return filed on individual (IMF) tax form See IRM 3.11.3.6.2.15, Misfiled Return Loose Schedule H for TY26 Correspond with Notice 1208 Current year loose Schedule H received on or before 04/15/2026 Correspond with Notice 1207 Early filed Form 8288-A: Date of Transfer is for TY26 See IRM 3.21.3.15.1.29 Missing or invalid signature See "Signature Issues" above Filer's U.S. status: Form 1040 with Form 1042-S See IRM 3.21.3.3.1 and IRM 3.21.3.15.1.29 Filer's U.S. status: Form 1040-NR indicating resident in the U.S. all year See IRM 3.21.3.83 Form 1040-PR or Form 1040-SS filed with a U.S. Form W-2 See IRM 3.21.3.81 Bona fide Puerto Rico resident with no U.S. filing requirement See IRM 3.21.3.80.1.1 Bona fide Puerto Rico resident claiming Additional Child Tax Credit (Form 1040 or Form 1040-A (2017 and prior)) See IRM 3.21.3.80.1.1 Article XXV of the U.S.-Canada Income Tax Treaty claimed on Form 1040 and missing Form 1040-NR See IRM 3.21.3.15 When sending the return back to the taxpayer for correspondence: Line through your TE number Remove Form 3471-E and any other internal documents, if attached. Note: If second correspondence is required, remove the original Form 9143 or Form 13557. Do not detach attachments. Delete any IRS Received Date. If the address is missing, illegible or incomplete, perfect from an attached envelope or from a TY18 Schedule 6. If unable to perfect, research. If an international address and domestic address are both present, circle out International address and perfect the domestic address. When sending the return back for a missing or invalid signature, or for a missing or invalid signature plus additional items, edit an Action Trail indicating, Returned for Signature, the correspondence form used, and the boxes or items requested (e.g., Returned for Signature, F9143 - 1, 4, 13, MMDDYY). Do not edit an Action Trail if only a misfiled return is being sent back to the taxpayer. Note: The date may be edited or stamped following local procedures. Stop editing the return. Complete Form 9143 or Form 13557. Attach the correspondence sheet face up to the return immediately below the caption area. Caution: When stapling the correspondence sheet to the return, ensure you are attaching only one return. Staple in the left margin through only the first one or two pages. Remove the return from the batch and place it in the designated area. When preparing Form 9143 or Form 13557: Write legibly to ensure that the taxpayer understands what information is being requested. Check the appropriate box(es). Complete all information required for each paragraph (e.g., forms, lines, amounts, etc.). Edit money amounts in dollars and cents. Bracket negative amounts.

# Correspondence When Not Sending Returns Back to the Taxpayer

3.21.3.6.2 (03-31-2025) Correspondence When Not Sending Returns Back to the Taxpayer Complete all possible editing and identify all correspondence issues, when you are not sending the return back to the taxpayer. When the first correspondence condition is identified, correspond for all missing required forms, schedules, and/or withholding documentation, regardless of correspondence tolerances identified in the line-by-line instructions. Exception: Only correspond for Form 1116, Form 8283, Schedule 8812, and Schedule EIC when the tolerance in line-by-line IRM instructions is met. If the address is missing, illegible, or incomplete: Perfect from an attached envelope. If unable to perfect from an attached envelope, research. If an address cannot be found through research, see paragraph 4. When an address cannot be found through research: Do not correspond. Underline or edit the name control Follow No Reply instructions. See IRM 3.21.3.6.4. A correspondence action sheet (CAS) is a form used to generate a letter requesting information from a taxpayer. A CAS is used with a return that is not sent back to the taxpayer. The following CAS forms are used: Form 13900 is used to generate Letter 4087C (International and Streamlined Filing Compliance Procedures returns). See Exhibit 3.21.3-15. Form 13975 is used to generate Letter 2894C for Form 1040-SS and Letter 2894C-SP for Form 1040-SS (sp) and Form 1040-PR (TY22 and prior) (International returns). See Exhibit 3.21.3-16. Form 3696-A is used to generate miscellaneous Correspondex (C) letters (e.g., Letter 369C used to deny reasonable cause). Prepare Form 13900 (Letter 4087C) or Form 13975 (Letter 2894C/Letter 2894C-SP) using the following steps: Write legibly. Check all appropriate boxes. Complete all information required for each paragraph selected (e.g., forms, lines, amounts, etc.) Edit money amounts in dollars and cents. Bracket negative amounts. On prior year returns only, edit the tax year in YYYY format in field (04). Always select the paper return fax number paragraph applicable to your campus. Note: Austin will use paragraph &, Form 13900 or paragraph 8, Form 13975. Prepare the CAS, and attach to the tax return face-up below the caption area. Caution: When stapling the correspondence sheet to the return, ensure you are attaching only one return and staple in the left margin. Edit Action Code "215" on all returns requiring correspondence if the return is not being mailed back to the taxpayer, unless Action Code "300" can be edited. If a received date is not present on the return, edit the received date before corresponding and see IRM 3.21.3.8 for received date editing instructions.

# Replies to Correspondence

3.21.3.6.3 (01-01-2021) Replies to Correspondence Move all correspondence sheets to the back of the return. If second correspondence is required, remove Form 9143 or Form 13557. Ensure that the return has been perfected. See the Correspondence Action Table at IRM 3.21.3.6.5 for instructions to process "no reply" , "undeliverable" , and "incomplete reply" correspondence. Edit the received date on returns identified as Returned for Signature; following the instructions in IRM 3.21.3.8.1 (4). For additional "No Reply" instructions, see IRM 3.11.3.5.3.2, No Reply/Incomplete Reply/Undeliverable Correspondence.

# No Reply/Incomplete Reply/Undeliverable Correspondence

3.21.3.6.4 (10-30-2024) No Reply/Incomplete Reply/Undeliverable Correspondence Move all correspondence sheets to the back of the return. If second correspondence is required, remove Form 9143 or Form 13557. Use the Correspondence Action Table and continue processing the return if any of the following are true: Taxpayer does not provide ALL required information. Correspondence is returned by the USPS as "undeliverable." One or more correspondence conditions were not included when the first correspondence was sent. Edit CCC "U" on all no reply returns, except when either: The correspondence was not required, or One or more correspondence conditions were not included when the first correspondence was sent. When the correspondence sheet (Form 9143 or Form 13557) is not attached, assume all correspondence conditions were included when the correspondence was sent unless there is evidence to the contrary. If a no reply correspondence condition is not identified in IRM 3.21.3.6.5, Correspondence Action Table, edit CCC "U" unless a valid condition in (3) above applies and take no further action. If CCC "3" is required, edit it first.

# Correspondence Action Table

3.21.3.6.5 (03-31-2025) Correspondence Action Table Form 1040: Correspondence Required When the Following Conditions Exist: Action Required for Incomplete Reply or No Reply to Correspondence Article XXV of the U.S.- Canada Income Tax Treaty and Form 1040-NR not attached Convert to Form 1040-NR. Bona fide resident of Puerto Rico filing Form 1040 or Form 1040-A (TY17 and prior) "X" any exclusion pertaining to IRC 933 and continue processing. Line 25d - ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form W-2, Form 1042-S, Form 8805, Form 8288-A and/or Form 8959 are not attached "X" line 25d. Caution: If a letter is attached signed by the U.S. Competent Authority, accept the letter as proof of Form 1042-S withholding and do not "X" line 25d. Line 25d - Early-filed Form 8288-A and Form 843 is not attached "X" line 25d. Line 25d - Filer's U.S. Status and Form 1040-NR not attached Move amount on line 25d to dotted portion of line 33. Line 25d - SSA-1042S or RRB-1042S attached and no green card and/or declaration statement attached "X" line 25d. Line 33 (dotted portion) - ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8689 is not attached "X" line 33. Loose Schedule H - Cannot determine if Schedule H should be filed loose or attached to a Form 1040 Process Schedule H with a dummied Form 1040. See IRM 3.11.3, Individual Income Tax Returns and IRM 3.21.3.49. If signature or documentary evidence missing, also edit CCC "3" . Schedule 1: Correspondence Required When the Following Conditions Exist: Action Required for Incomplete Reply or No Reply to Correspondence Schedule 1, Line 9 - Form 2555 or Form 2555-EZ (TY18 and prior) is not attached and one or more of these indications are present: IRC 911 Notation of Form 2555 or Form 2555-EZ (TY18 and prior) Foreign Earned Income Exclusion (Schedule 1, line 8d) Foreign Housing Exclusion (Schedule 1, line 8d) Foreign Housing Deduction (Schedule 1, line 24j) "X" Schedule 1, line 9 and line 25, and Edit CCC "U" . Note: If there is no other foreign aspect of the return, rebatch the coded return as domestic. Schedule 1, Line 9 - Incomplete Treaty information "X" Schedule 1, line 9 and ensure amount is present on line 1a, Form 1040. Schedule 1, Line 9 - IRC 893 and the number of the Executive Order and written evidence not attached "X" Schedule 1, line 9. Schedule 1, Line 9 - IRC 965 noted and "IRC 965 Transition Tax Statement" is not attached Edit RPC "F" . TY17 only: also edit Action Code "300" . Form 2555 and Form 2555-EZ (TY18 and prior): Correspondence Required When the Following Conditions Exist: Action Required for Incomplete Reply or No Reply to Correspondence If any of the following are missing or incomplete: page 1 page 2 page 3 "X" Schedule 1, line 9 and line 25, "X" Form 2555 or Form 2555-EZ (TY18 and prior), and Edit CCC "U" Note: If the deleted Form 2555 or Form 2555-EZ is the only foreign aspect of the return, rebatch the coded return as domestic. Bona Fide Residence or Physical Presence Dates are missing "X" Schedule 1, line 9 and line 25, "X" Form 2555 or Form 2555-EZ (TY18 and prior), and Edit CCC "U" . Note: If the deleted Form 2555 or Form 2555-EZ is the only foreign aspect of the return, rebatch the coded return as domestic. Taxpayer enters beginning and ending dates that do not include part of the tax year of the return "X" Schedule 1, line 9 and line 25, "X" Form 2555 or Form 2555-EZ (TY18 and prior), and Edit CCC "U" . Note: If the deleted Form 2555 or Form 2555-EZ (TY18 and prior) is the only foreign aspect of the return, rebatch the coded return as domestic. Joint return with an indication each spouse has their own income and only one Form 2555 or Form 2555-EZ (TY18 and prior) is attached "X" Schedule 1, line 9 and line 25, "X" Form 2555 or Form 2555-EZ (TY18 and prior), and Edit CCC "U" . Note: If the deleted Form 2555 or Form 2555-EZ (TY18 and prior) is the only foreign aspect of the return, rebatch the coded return as domestic. Exception: If the joint filers are a missionary team, divide the income equally between the two filers on separate Form 2555. Form 2555-EZ Only (TY18 and prior): Correspondence Required When the Following Conditions Exist: Action Required for Incomplete Reply or No Reply to Correspondence Form 2555-EZ (TY18 and prior) is attached and any of the following is claimed: Foreign earned income is more than the maximum allowed for the tax year Self-employment income Business/moving expenses Foreign housing exclusion or deduction Other than a calendar year return that covers a 12-month period "X" Schedule 1, line 9 and line 25, "X" Form 2555-EZ (TY18 and prior), and Edit CCC "U" . Note: If the deleted Form 2555 or Form 2555-EZ (TY18 and prior) is the only foreign aspect of the return, rebatch the coded return as domestic. Form 4563 or IRC 931: Correspondence Required When the Following Conditions Exist: Action Required for Incomplete Reply or No Reply to Correspondence Form 1040 indicates IRC 931 or Income from American Samoa and Form 4563 is not attached "X" Schedule 1, line 9 and line 25, and Edit CCC "U" . Form 1040-SS, Form 1040-SS (sp), and Form 1040-PR: Correspondence Required When the Following Conditions Exist: Action Required for Incomplete Reply or No Reply to Correspondence Form W-2 attached and Form 1040 not filed Convert. Part I, line 3 has an amount and Schedule SE or Part V is missing Divide Self-Employment Tax amount by .153 to determine the subtotal amount. Divide the subtotal amount by .9235 to determine the total self-employment income amount. Prepare a dummy Schedule SE for the primary taxpayer if the Social Security Wages are $176,100 or less for TY25. Note: For prior year, see IRM 3.21.3.86.15. Edit the total self-employment income amount on Schedule SE, line 3. Part I, line 4 has an amount, and Schedule H, Schedule H (sp), or Schedule H-PR is not attached. "X" Part I, line 4. All are true: Part I, line 11a has a non-zero amount Form 8959 is not attached "X" Part I, line 11a. One Schedule SE or Part V is submitted for 2 taxpayers Divide Self-Employment Tax amount by .153 to determine the subtotal amount. Divide the subtotal amount by .9235 to determine the total self-employment income amount. Prepare a dummy Schedule SE for the primary taxpayer if the Social Security Wages are $176,100 or less for TY25. Note: For prior year, see IRM 3.21.3.86.15. Edit the total self-employment income amount on Schedule SE, line 3. Form 1040-NR, Page 1: Correspondence Required When the Following Conditions Exist: Action Required for Incomplete Reply or No Reply to Correspondence Filed for two taxpayers: Two names present, two incomes reported, and two signatures Circle out secondary taxpayer, Edit CCCs "3" , "U" , and "Y" , and Edit action trail: "no reply two taxpayers." Invalid treaty information provided, or taxpayer does not reference a valid treaty benefit "X" the exclusion amount, Ensure the amount is included in lines 1a - 9, and Edit CCC "U" . Form 1040-NR, Page 2: Correspondence Required When the Following Conditions Exist: Action Required for Incomplete Reply or No Reply to Correspondence Line 25d is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and supporting Form W-2 series, Form 1099 series, Form 4852, Form 8959, or supporting documentation is not attached "X" line 25d. Note: DO NOT edit CCC "U" . Line 25e - Section 1446 credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8805 or similar withholding document is not attached "X" line 25e. Note: DO NOT edit CCC "U" . Line 25f - Entry is present and Form 8288-A is not attached "X" line 25f. Note: DO NOT edit CCC "U" . Line 25f - Early-filed Form 8288-A and Form 843 is not attached "X" line 25f. Note: DO NOT edit CCC "U" . Line 25g shows an entry and Form 1042-S, Form SSA-1042S, or Form RRB-1042S is not attached "X" line 25g. Note: DO NOT edit CCC "U" . Caution: If a letter is attached signed by the Competent Authority, accept the letter as proof of Form 1042-S withholding and do not "X" line 25g. Form 1040-NR, Schedule A (Sequence 7A - Itemized Deductions): Correspondence Required When the Following Conditions Exist: Action Required for Incomplete Reply or No Reply to Correspondence Line 3 - Amount present more than $500 and Form 8283 is not attached $20,000 or more, Art indicated on Form 8283, and separate appraisal not attached More than $500,000, and separate appraisal not attached Form 8283, page 2, has significant entries but not signed "X" Line 3. Line 6 - Entry is present and Form 4684 is not attached "X" line 6, and Edit CCC "U" . Form 1040-NR, Schedule NEC (Sequence 7B - Tax on Income Not Effectively Connected With a U.S. Trade or Business) Correspondence Required When the Following Conditions Exist: Action Required for Incomplete Reply or No Reply to Correspondence Cannot determine correct country of permanent address Multiply the gross not effectively connected income (sum of 13a, 13b, 13c, and 13d) by 30%, and Edit the result to Form 1040-NR, page 2, line 23a. Dual-Status Returns: Correspondence Required When the Following Conditions Exist: Action Required for Incomplete Reply or No Reply to Correspondence If a determination cannot be made about which return to process or the "Dual-Status Statement" is missing Edit CCC "U" , and do one of the following: When both Form 1040, and Form 1040-NR or Form 1040-NR-EZ are present, process Form 1040-NR, or convert Form 1040-NR-EZ to Form 1040-NR and process, as the "Dual-Status Return," and use the Form 1040 as the "Dual-Status Statement." When only one form is present, always process as a Form 1040-NR. Note: Dummy Form 1040-NR if missing. Filing Status Code (FSC) is 2 and both taxpayers have income Circle out the name of the secondary taxpayer, Edit CCCs "3," "U," and "Y," and Edit action trail: "no reply with two incomes." Form SSA-1042S and/or Form RRB-1042S: Correspondence Required When the Following Conditions Exist: Action Required for Incomplete Reply or No Reply to Correspondence Withholding claimed and no U.S. documentation submitted "X" withholding amount and income where found, Edit CCCs "3" ,"U" , and "Y" , and Edit action trail: "SSA/RRB-1042S." For additional no reply instructions, see IRM 3.11.3.5.3.2, No Reply/Incomplete Reply/Undeliverable Correspondence.

# Editing for ALL International Returns

3.21.3.7 (01-01-2021) Editing for ALL International Returns Editing prepares returns and attachments for transcription and computer processing. In addition to the following subsections, see IRM 3.11.3.4.1 through IRM 3.11.3.4.2.6.

# Transcription Lines (T-Lines) and Transcription Compute Lines (T-Compute Lines)

3.21.3.7.1 (01-01-2018) Transcription Lines (T-Lines) and Transcription Compute Lines (T-Compute Lines) For complete instructions, see IRM 3.11.3.3.2, Transcription Lines and Transcription Compute Lines.

# Sequence of Transcribed Schedules and Forms

3.21.3.7.2 (10-29-2025) Sequence of Transcribed Schedules and Forms In the upper-right margin of each form or schedule is a preprinted number called a sequence code. The Integrated Submission and Remittance Processing (ISRP) operators transcribe forms and schedules by their sequence code. ISRP sequence codes range from 01 through 79. Any form or schedule with a sequence number between 01 and 79 that is not transcribed must be deleted. See the table in IRM 3.21.3.7.2 (11) for a list of the sequence codes for all transcribed schedules and forms. Delete any document, form, or schedule that will not be transcribed when there is a transcribed form/schedule after it. For a large number of non-transcribed forms, "X" the top page and combine the remaining pages together with a rubber band, staple, or clip. Leave all non-transcribable forms/schedules intact after the last transcribed page. Note: Form 8938, Statement of Specified Foreign Financial Assets is transcribed in a separate program. Refer to Exhibit 3.21.3-1 . Delete any form that shares a sequence number with a transcribed form. Note: Examples include, but are not limited to, the following: Form or Schedule Sequence Number Form 2106 54 (TY07 and prior) Form 3468 52 (TY09 and prior) Form 3903 62 (TY10 and prior) Form 4563 68 (TY18 and prior) Form 5884-B 65 Form 8621 69 Form 8801 74 (TY19 and prior) Form 8829 66 (TY09 and prior) Form 8862 43A (TY23 and later) Form 8949 12A (TY18 and prior) Schedule D-1 12A (TY10 and prior) Form 8995-A Schedule A 55B Form 8995-A Schedule B 55C Form 8995-A Schedule D 55E "X" a transcribed schedule or form if it is blank or has no significant T-line entries, unless specifically instructed otherwise. Exception: Do not "X" Form 8938 when there are no significant entries on T-Lines. If any schedule or form is attached with "Alt Min Tax" , "AMTCR" , "AMT" or "Alternative Minimum Tax" or similar statement notated across the top, "X" the form or schedule. Delete duplicate forms or schedules with identical amounts that are filed for the same taxpayer. For transcribed forms or schedules with multiple pages, ensure the pages are together and in the proper order (page 1, page 2, etc.). Arrange Schedules 1 through 3 in sequential order behind Form 1040 or Form 1040-NR. When processing Form 1040-NR, keep Schedule A, Schedule NEC, and Schedule OI together as page 1, page 2, and page 3 of Sequence 07. Arrange Sequence 07 Schedules behind Form 1040-NR and Schedules 1 through 3. Exception: When a transcribed form or schedule is found on the back side of Form 1040 or Form 1040-NR, it is not necessary to photocopy and move behind Schedules 1-3. Leave Form W-2, Form 1099, other U.S. withholding documents, Form 1040-V, taxpayer statements, deposit slips, small forms, or other items where they were found, if they do not obstruct T-lines or any part of the caption area. These are the transcribed forms and schedules, their sequence numbers, and the returns to which they can be attached: Note: If the return is converted, refer to the form type of the converted return. Form/Schedule Sequence Number 1040 1040-NR 1040-SS/1040-SS (sp)/1040-PR (TY22 and prior) Schedule 1 01 Yes Yes No Schedule 1-A (TY25 and later) 1A Yes Yes No Schedule 2 02 Yes Yes No Schedule 3 03 Yes Yes No Schedule A, Form 1040 07 Yes No No Schedule A, Form 1040-NR 7A No Yes No Schedule NEC 7B No Yes No Schedule OI 7C No Yes No Schedule B 08 Yes No No Schedule C; Schedule C (sp); Schedule C-EZ (TY18 and prior) 09, 10, 11 Yes Yes Yes Schedule D 12 Yes Yes No Form 8949 (TY19 and later) 12A Yes Yes No Schedule E 13 Yes Yes No Schedule F; Schedule F (sp) 14, 15 Yes Yes Yes (not transcribed) Schedule R 16 Yes No No Schedule SE; Schedule SE (sp) 17, 18 Yes Yes (only Sequence Code 17) Yes Form 1116 19 Yes Yes No Schedule J 20 Yes Yes No Form 2441 21 Yes Yes No Form 3800 22 Yes Yes No Form 4137 24, 25 Yes Yes (only sequence code 24) Yes (not transcribed) Form 4684 26 Yes Yes No Form 4797 27 Yes Yes No Form 4972 28 Yes Yes No Form 5329 29, 30 Yes Yes (only sequence code 29) No Form 6198 31 Yes Yes No Form 6251 32 Yes Yes No Form 8615 33 Yes Yes No Form 2555; Form 2555-EZ (TY18 and prior) 34, 35 Yes No No Form 8283 36 Yes Yes No Form 4835 37 Yes Yes No Form 8839 38 Yes Yes No Form 8853 39 Yes Yes No Form 8814 40, 41, 42 Yes Yes No Schedule EIC 43 Yes No No Schedule H; Schedule H (sp); Schedule H-PR (TY22 and prior) 44, 45 Yes Yes (only Sequence Code 44) Yes Schedule 8812; Form 8812 (TY11 and prior) 47 Yes Yes No Form 8806 48, 49 Yes Yes No Form 8863 50 Yes No No Form 4952 51 Yes Yes No Form 8889 52, 53 Yes Yes (only sequence code 52) No Form 8880 54 Yes Yes No Form 8995 (TY19 and later) 55 Yes Yes No Form 8995-A (TY19 and later) 55A Yes Yes No Form 8995-A, Schedule C (TY20 and later) 55D Yes Yes No Form 8888 56 Yes Yes Yes Form 8978 (TY19 and later) 57 Yes No No Form 5405 (TY24 and prior) 58, 59 Yes No Yes Form 8919 61, 62 Yes Yes (only sequence code 61) Yes Form 8958 63 Yes Yes No Form 461 (TY21 and later) 64 Yes Yes No Form 8941 65, 66 Yes Yes (only sequence code 65) No Form 6252 (TY19 and later) 67 Yes Yes No Form 8936 69 Yes Yes No Form 8936 Schedule A 69A Yes Yes No Form 8867 70 Yes Yes Yes Form 8959 71 Yes Yes Yes Form 8960 72 Yes Yes No Form 8962 73, 74 Yes Yes No Form 5695 (TY23 and later) 75 Yes Yes No Form 965-A (TY19 and later) 76 Yes No No Form 9000 (TY21 and later) 77 Yes Yes Yes Schedule LEP (TY19 and later) 77A Yes Yes Yes Form 8997 (TY21 and later) 78 Yes Yes No Form 4136 79 Yes Yes No Form 8938 938 Yes Yes No

# Form 3471-E

3.21.3.7.3 (01-01-2020) Form 3471-E Edit money amounts on Form 3471-E in dollars only for all form types. Staple Form 3471-E to the last page of the tax return with Form 3471-E facing out. For complete instructions see IRM 3.11.3, Individual Income Tax Returns.

# Dollars and Cents Editing

3.21.3.7.4 (01-14-2025) Dollars and Cents Editing Allow the taxpayers to round or truncate (drop the cents) amounts. Use only dollar amounts when computing amounts on forms or schedules. Exception: Use dollars and cents when computing withholding and excess Social Security tax. For TY18 and prior, draw a vertical line between the dollars and cents figures when dollars or cents are in the wrong column: on each line that is to be transcribed, or down the entire front of the form or schedule Exception: It is not required to draw a vertical line when column(s) are not present and the dollars and cents have been separated by a decimal. Dollars and cents editing is required on certain T-lines if any of the following conditions exist: A substitute form is used with dollars and cents not clearly separated by a decimal point or slash. Exception: Do not draw a vertical line to separate dollars and cents when only dollar amounts are present on a dollars and cents T-line. An entry is illegible. When computing and editing an entry as directed by line-by-line instructions. Exception: It is not necessary to edit "00" to indicate no cents. The following line numbers require dollars and cents editing when adjusting or editing: Form 1040 - lines 24 through 38 Form 1040-NR - lines 24 through 38 Schedule 3 - lines 9 through 14 Form 1040-PR - Part I, lines 6 through 16 Form 1040-SS/1040-SS (sp)- Part I, lines 7 through 16 Form 13900 and Form 13975 Form 9143 and Form 13557

# Action Codes

3.21.3.7.5 (04-26-2022) Action Codes An Action Code consists of three numeric characters and is used to reject a document and identify the reason for rejection. Edit Action Codes on page 1 of the return in the bottom-center margin. Assign only one Action Code to a document. Edit Action Codes in the following priority: "300" "310" "4XX" "6XX" "2XX" "3XX" These Action Codes are for international processing: "215" - International correspondence "420" - Verification of Form 8288-A withholding for numbered returns "651" - Transship international returns to AUSC Note: When processing returns that were transshipped, delete the Action Code "651" and continue processing. For a complete list of Action Codes, IRM 3.11.3, Exhibit 2.

# Audit Codes

3.21.3.7.6 (04-24-2020) Audit Codes An Audit Code is an alpha or numeric character used to identify a questionable condition for Examination. Edit Audit Codes horizontally on page 1 of the return in the bottom-right margin. The most commonly used international Audit Codes are: Code Explanation H Schedule B, line 8, Yes box is marked, or One or more of the following are attached: Form 926, Form 3520, Form 3520-A, Form 5471, or Form 5472 K Expatriation return (Form 1040-NR with Form 8854 attached) L IRC 6501(d): request for prompt audit or assessment, or Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands, is attached to Form 1040 For a list of additional Audit Codes, see IRM 3.11.3-3.

# Computer Condition Codes (CCCs)

3.21.3.7.7 (10-29-2025) Computer Condition Codes (CCCs) A Computer Condition Code (CCC) is an alpha or numeric character. Edit CCCs horizontally in the following locations: Form 1040: page 1 in the blank space to the right of Head of Household (HOH) in the Filing Status area. Form 1040-NR: page 1 to the right of the Trust box in the Filing Status area. Form 1040-SS, Form 1040-SS (sp), and Form 1040-PR: page 1 centered to the right of Part I Total Tax Credits (see instructions). Note: For prior year editing locations, see Job Aid 2513-701. Edit Computer Condition Code "C" when Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), is attached to Form 1040-NR. CCC "C" is unique to international processing. When CCC "3" is edited, it must appear first (to the left of any other CCC). Always edit an Action Trail when CCC "Y" is edited. Exception: An Action Trail is not required when CCC "Y" is edited to indicate that a return is Dual-Status. For a list of additional Computer Condition Codes (CCCs), see IRM 3.11.3-4.

# Form Processing Codes (FPCs)

3.21.3.7.8 (10-29-2025) Form Processing Codes (FPCs) A Form Processing Code (FPC) is an alpha or numeric character that indicates when a specific form or schedule is attached to a return. Edit FPCs vertically in the following locations: Form 1040 and Form 1040-NR: page 1 to the right of Line 5b Form 1040-SR: page 1 to the right of Line 1g Note: For prior year editing, see Job aid 2513-701. Form 1040-SS, Form 1040-SS (sp), and Form 1040-PR: page 1 in the margin to the right of Line 7 For TY16 and later, edit FPC "D" if there is a federally declared disaster loss claimed on Schedule A and Form 4684. For Form 1040-NR only, edit FPC "S" if Schedule SE is attached or there is an entry on Schedule 2, line 4. For a list of other Form Processing Codes (FPCs), see exhibit in IRM 3.11.3-5.

# Return Processing Codes (RPCs)

3.21.3.7.9 (10-29-2025) Return Processing Codes (RPCs) A Return Processing Code (RPC) is an alpha or numeric character used to alert the computer to a special condition or computation. These codes are used for center processing and don't post to the Master File. Edit RPCs horizontally on page 1 of the return in the bottom left margin. For a complete list of Return Processing Codes (RPCs), see Exhibit 3.21.3-3.

# Special Processing Codes (SPCs)

3.21.3.7.10 (01-01-2023) Special Processing Codes (SPCs) A Special Processing Code (SPC) is an alpha or numeric character used to flag a condition or trigger a computation. SPCs are used for computer processing and do not post to the Master File. SPCs supplement the Return Processing Codes. Edit SPCs vertically in the following locations: Form 1040: page 1 to the right of the Spouse's social security number Form 1040-NR: page 1 to the right of Your identifying number Form 1040-SS, Form 1040-SS (sp), and Form 1040-PR: page 1 to the right of Spouse's social security number Edit SPC "P" on all Streamlined Filing Compliance returns. Special Processing Code "P" is unique to international processing. For a list of additional Special Processing Codes (SPCs), see Exhibit 3.11.3-6.

# Received Dates for All International Returns

3.21.3.8 (10-29-2025) Received Dates for All International Returns The received date is the date a return was received by the IRS and it is required on every return. When a received date is missing, edit it in "MMDDYY" (Month/Month, Day/Day, Year/Year) format, using the instructions below: Form 1040: edit on the front of the return in the filing status area to the right of Single filing status checkbox. Form 1040-A (TY17 and prior): edit to the left of line 6d Form 1040-EZ (TY17 and prior): edit in the center to the left of line 6 Form 1040-SS/Form 1040-SS (sp): edit in the dotted portion to the left of line 5. Form 1040-PR (TY22 and prior): edit in the dotted portion to the left of line 5 Form 1040-NR: edit below "Dependents (see instructions)" Form 1040-NR (TY24 - TY20): edit in the empty space to the right of "Dependents (see instructions)" Form 1040-NR (TY19 and prior): edit in the dotted portion to the left of line 8 Note: For prior year Form 1040 editing location, refer to Job Aid 2431-010. For prior year Form 1040-SS and Form 1040-NR editing locations , refer to Job Aid 2513-701. If the received date is present in or above the caption area, delete, and edit the same received date, as instructed above. If a received date is not present on page 1 of the return, search the return and attachments for a received date, and edit that date as instructed above. Circle all but the earliest received date when a return has multiple received dates. See IRM 3.21.3.8. Note: Circle all but the earliest valid received dates (including Statute or other valid IRS organization's received dates) when there are multiple received dates present. See IRM 3.21.3.8.1.1. Taxpayer Advocate Service (TAS) received dates are not valid received dates. If multiple received dates are identical, circle all but one received date. Exception: When the return has been mailed back for missing signature(s), and multiple received dates are present, see IRM 3.21.3.8.1. If a received date is "X" -ed or deleted in another manner, circle that received date stamp and edit the correct received date if a valid received date is not present. Perfect the received date when it is not legible or is incomplete. When perfecting edit in the "MMDDYY" format. When multiple returns are mailed together, the envelope is attached to one return and a dual date stamp is used on the other returns. A dual date stamp has both the postmark date and the received date. If a return has been faxed by another area of the IRS and then sent to Code & Edit for processing, do not edit the Enterprise Electronic Fax (EEFax) date as the IRS Received Date. Edit the received date following normal procedures when one is not present. Caution: The EEFax Date cannot legally be used as the IRS Received Date. Transshipped Returns - Any of the following are indications of a transshipped return: A Service Center received date stamp other than Austin (AUSC) A blue tag titled ROUTE with the box marked AUSC (Austin) Any other indications or evidence of a transshipped return which may be identified If the return was transshipped from any other Service Center (Andover, Atlanta, Brookhaven, Cincinnati {Covington}, Fresno, Kansas City, Memphis, Ogden, or Philadelphia), follow the instructions below: Note: DO NOT refer to any other instructions in this IRM or in IRM 3.11.3, Individual Income Tax Returns, to determine the received date for any return that can be identified as being transshipped from another Service Center. If Then The return has been stamped with an AUSC received date and another Service Center stamped received date, Circle out the other Service Center received date (including those that have ramped down), leaving only the AUSC date. The return has a Field Assistance/TAC received date stamp, Honor the Field Assistance/TAC received date. Circle any other received date(s). The return has only received date(s) stamped from another Service Center, Circle the received date(s). Edit a received date (current date minus 10 days). Exception: If today's date minus 10 days makes the received date earlier than any of the other campus dates, edit the other campus date as the received date. The return has only an AUSC received date, Take no action. The return has no received date, Edit a received date (current date minus 10 days). Exception: If the return was transshipped and a determination was made that the return was not foreign or the foreign aspect was deleted, process the return as a domestic return and honor the original received date.

# Determining Received Date

3.21.3.8.1 (10-30-2024) Determining Received Date Determine the received date in the following priority when there is no valid date stamp or written received date: Latest postmark on the envelope or latest date from a designated private delivery service or private metered postmark. Note: When the envelope or air-bill is not attached, use the postmark date stamped or handwritten on the return to determine the received date. Service Center Automated Mail Processing System (SCAMPS) digital dates stamped on the envelope. Latest date by the taxpayer's signature. Exception: Use the signature date on prior year returns only when it is within the current year. Also, do not use the signature date to determine the received date for replies to correspondence. Julian date in the DLN minus 10 days. Today's date minus 10 days. For all returns: Edit the determined date as the received date when there is no valid date stamp or written received date. If the stamped received date is three months or more prior to the current date, search the return for an indication the received date is incorrect (such as a postmark or signature date after the received date). If the received date is determined to be incorrect, delete it and edit a new received date following instructions in IRM 3.21.3.8.1 (1). ALWAYS review each return for the words, "Returned for Signature" or similar statement and a date present in the lower-left corner of the return. These are returns that were originally received missing a signature and were mailed back to the taxpayer. If a date and the notation "Returned for Signature" or similar statement is present, refer to the following instructions for editing the received date: If the return is Balance Due and a received date is present showing a date within 30 days after the date present in the lower-left corner, use the date sent back for signature as the received date. Delete any other received date(s) that may be present. If the return is Balance Due and a received date is present showing a date MORE than 30 days after the date present in the lower-left corner, honor the latest received date. Delete any earlier received date(s) that may be present. If the return is a Refund, Credit Elect or Zero-balance return, honor the latest received date. Delete any earlier received date(s) that may be present. Exception: For statute returns only, if a received date is present showing a date within 30 days of the Returned for Signature date, circle out the latest received date and edit the earlier received date. Caution: Take the following action on any International Form 1040, Form 1040-NR, Form 1040-PR, or Form 1040-SS transshipped from another Campus, Territory Office, or Foreign Post: If Then There is no Austin Service Center (AUSC) received date, Edit the received date using today's date minus 10 days.

# Types of Received Dates

3.21.3.8.1.1 (11-07-2022) Types of Received Dates A valid Received Date stamp has all of the following: The word "Received" Month (alpha or numeric), Day, and Year The name of the city or the name of the functional area (e.g., Statute, RIVO, CSCO, Exam, ICT, CII, AM, etc.). Note: A received date from one of these cities is not valid: Andover, Atlanta, Brookhaven, Cincinnati {Covington}, Fresno, Kansas City, Ogden, or Philadelphia. Follow the instructions in IRM 3.21.3.8 (11) for transshipped returns. Accept a valid Received Date stamp from the following: Austin (AUSC/AUSPC) Charlotte, NC Field Assistance or TAC offices IRS area/territory IRS Offices in London, Paris, Beijing or Frankfurt only. Accept as valid a handwritten or typed received date if edited by an IRS employee in Submission Processing or Return Integrity Verification Operations (RIVO). Note: A clear indication that a handwritten or typed received date has been edited by RIVO will be the presence of SPC "B" , SPC "M" , and/or "RIVO" noted or stamped in the upper-left margin. Generally, the RIVO edited received date will be earlier than the original, stamped received date. Accept a received date on an IRS Received Date label (Form 14471) above the caption. Note: Delete and edit the same received date as instructed in IRM 3.21.3.8 (2).

# Post Office Marks

3.21.3.8.1.2 (10-30-2024) Post Office Marks For complete instructions, see IRM 3.11.3.8.2.2, Post Office Marks. Note: Postmark dates from foreign countries are often in Day-Month-Year (DDMMYY) or Year-Month-Day (YYYYMMDD) format. Some countries use roman numerals for the month.

# Private Delivery Service (PDS) Marks

3.21.3.8.1.3 (01-01-2015) Private Delivery Service (PDS) Marks For complete instructions, see IRM 3.11.3.8.2.3, Private Delivery Service (PDS) Marks.

# Timely-Filed Returns

3.21.3.8.2 (10-29-2025) Timely-Filed Returns In 2026, a current year return is a return filed for tax year 2025. A current calendar-year return (2512) is considered timely filed when it is received on or before the due date: April 15, 2026 for Form 1040, Form 1040-SS, Form 1040-SS (sp) April 15, 2026 for Form 1040-NR (programs 46120 and 46160) April 15, 2026 for Dual-Status Form 1040 (program 46115), Dual-Status Form 1040-NR (program 46129) June 15, 2026 for Form 1040-NR (programs 46140 and 46180) June 15, 2026 for Dual-Status Form 1040-NR (programs 46145 and 46185) Note: Extended due dates for taxpayers affected by terroristic action in Israel. Notice 2023-71 (October 13, 2023) provides that certain tax return filing deadlines and other tax obligations for individuals and businesses affected by the terrorist attacks in Israel otherwise due between October 7, 2023, and October 7, 2024, are extended until October 7, 2024. These extensions apply to any individual whose principal residence is located in Israel, the West Bank, or Gaza, and to any business entity or sole proprietor whose principal place of business is in these areas, among others. The extended due dates were implemented automatically for these individuals and businesses based on prior year tax filings. Other individuals eligible for this relief, include, e.g., an individual relief worker affiliated with a recognized governmental or philanthropic organization who is assisting in the covered area. Those and other eligible individuals were advised to inform the IRS of their eligibility for this relief by calling IRS disaster hot lines ((866) 562-5227 for domestic callers and (267)941-1000 for international callers). All returns require a received date.

# Grace Period

3.21.3.8.3 (10-30-2024) Grace Period By law, a timely-mailed return is a timely-filed return. This applies to both United States Postal Service (USPS) and designated Private Delivery Service (PDS) mail. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Late-Filed Return/Reasonable Cause

3.21.3.8.4 (01-14-2025) Late-Filed Return/Reasonable Cause A return is delinquent when it is filed after the due date without an approved extension. Note: Taxpayers residing outside the United States and Puerto Rico are entitled to a two-month extension to file. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Exception: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Exception: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Edit CCC "N" on a return that qualifies the taxpayer for a special extension when the received date is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and there is an indication (on the return or an attachment) of any of the following: The taxpayer lived outside the United States and Puerto Rico on the due date of the return. Caption address outside United States and Puerto Rico. The taxpayer is in the military or naval service on duty outside the United States and Puerto Rico. The taxpayer has a APO/DPO/FPO address. Form 2555 dates indicate still there or continuing. Form 2555 has an ending date later than the tax year of the return (e.g., 2026, 2027, etc.). Return indicates Treasury Regulation 1.6081-5(a). Note: Do not edit CCC "N" on Form 1040-NR or Form 1040-NR-EZ. These taxpayers do not qualify for the special extension . Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ When the taxpayer's reasonable cause statement is not acceptable: Edit CCC "7" Route for correspondence. Letter 854C (Penalty Waiver or Abatement Disallowed Appeals Procedure Explained) must be issued. On a late-filed return when reasonable cause is established, take the following action: If Then Late filing Edit CCC "R" , unless CCC "N" has been edited. Late payment or a "Section 6020(b)" notation is present Edit CCC "M" . Edit CCC "R" on a late filed return when the taxpayer has a Form 4868 or Form 6401 attached to the return and an ITIN or IRSN is present in the primary SSN field. Both ITINs and IRSNs begin with a 9. Note: If CCC "N" is edited, delete CCC "N" . ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: Returns filed by taxpayers with an extension are due October 15, 2026. Extension forms are not required to be attached to the return when filed. Reminder: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: International taxpayers may have an additional extension until December 15, 2025. Extension forms are not required to be attached to the return when filed. Reminder: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# General Instructions for All International Returns

3.21.3.9 (10-29-2025) General Instructions for All International Returns Edit RPC "L" and CCC "B" if there are no significant T-line entries present or edited from attachments on lines: Form 1040: 1a through 38 Form 1040-A (TY17 and prior): 7 through 51 Form 1040-EZ (TY17 and prior): 1 through 14 Form 1040-NR: 1a through 38 Form 1040-NR-EZ (TY19 and prior): 3 through 26 Form 1040-SS and Form 1040-PR (TY22 and prior): Edit RPC "L" if there are no significant T-line entries present or edited from attachments on line 3 through 16. Computer-generated returns are identified by a three-alpha character software code in the bottom margin of page 1 or 2 of Form 1040, Form 1040-NR, or Form 1040-SS, or page 1, 2, 3, or 4 of Form 1040-SR. Edit RPC "V" when the tax return is computer generated. Also, edit SPC "Y" if FFF (separate from the software code) is present in the bottom margin. Exception: Do not edit RPC "V" or SPC "Y" if the return is a prior year return, or there is an indication the return was prepared by Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) (e.g., the presence of an "S" within the P-TIN field). For TY19 and TY20 returns identified as Economic Impact Payment (EIP) returns, no special processing is required. Disregard any notations of EIP on the return, and process per current instructions. If the return contains page 1 from Form 1040 and page 2 from Form 1040-NR or vice-versa: Convert and process as Form 1040-NRunless Schedule OI is attached and the taxpayer indicates presence in the U.S. for 365 or 366 days. If the taxpayer indicates presence in the U.S. for 365 or 366 days, then convert and process return as Form 1040. All amounts are to be reported in U.S. currency only. If amounts are reported in foreign currency, give the return to the workleader, who will convert any amounts reported in foreign currency to U.S. dollars using the exchange rate table appropriate for the tax period of the filer's return. See Treasury Reporting Rates of Exchange, and use December rates for the tax year of the return. Divide the foreign currency amount by the exchange rate. For early-filed returns, such as gambling: Edit Action Code "480" , Edit the tax period in YYMM format, and Edit the received date if not present. Some situations will require special editing procedures. Examine the return for indications of these conditions. Edit these returns using instructions in IRM 3.11.3.6, Special Situations and Returns, unless otherwise instructed in line-by-line instructions in IRM 3.21.3: Special Situations IRM Reference Combat Zone and other Military Operations IRM 3.11.3.6.1.1 Examination Cases IRM 3.11.3.6.1.5 Fiduciary Relationship (Minor Child, POA) IRM 3.11.3.11 Frivolous Filer/Non-Filer Returns Note: Any return with a 1099-OID should be treated as frivolous. Note: There are also FRIV 1040-NR Sole Proprietor - UK returns IRM 3.11.3.6.1.6 Hardship When the Taxpayer Advocate Service (TAS) Liaison walks a hardship return through Code & Edit: Perform all normal editing. Edit CCC "O" to freeze the refund Edit CCC "Y" to send the return to Error Resolution System (ERS) "X" the refund line on the return. Do not correspond. If correspondence conditions are identified during editing, give the return back to TAS. IRM 3.11.3.6.1.4 Identity Theft: Taxpayer submits Form 14039, Form 14039 (SP) or police report(s) claiming identity theft Exhibit 3.21.3-1 Killed in Terrorist Action (KITA) IRM 3.11.3.6.1.2 Natural Disaster/Emergency Relief Program IRM 3.11.3.6.1.3 Exception: The exception applies to domestic withholding only. Follow normal IRM procedures for withholding from Form 8805, Form 8288-A and Form 1042-S. Suicide Threats IRM 3.11.3.6.1.8 Special Returns IRM Reference Amended Returns IRM 3.11.3.6.2.1 Blank Returns IRM 3.11.3.6.2.3 Blind Trust Returns IRM 3.11.3.6.2.21 Blocked or Deferrable Income Returns IRM 3.11.3.6.2.6 Correspondence Imaging Inventory (CII) Returns IRM 3.11.3.6.2.7 Combined Tax Liability Returns IRM 3.11.3.6.2.8 Community Property or Registered Domestic Partnership Returns IRM 3.11.3.6.2.9 and IRM 3.21.3.9.2 52-53 Week Returns IRM 3.11.3.6.2.20 Form 8938, Statement of Specified Foreign Financial Assets Exhibit 3.21.3-1 and IRM 3.11.3.6.2.10 Incomplete Returns IRM 3.11.3.6.2.4 Form 8379, Injured Spouse Allocation IRM 3.11.3.6.2.11 Form 8857, Innocent Spouse Relief Request IRM 3.11.3.6.2.12 Misblocked Returns IRM 3.11.3.6.2.14 and IRM 3.21.3.4.1 Misfiled Returns IRM 3.11.3.6.2.15 Reinput Returns IRM 3.11.3.6.2.16 Returns Secured by Collection IRM 3.11.3.6.2.17 Short Period Returns IRM 3.11.3.6.2.18 Note: Edit Action Code "215" on International Returns. Substitute for Return (SFR) IRM 3.11.3.6.2.19 Unprocessable Returns IRM 3.11.3.6.2.2 Note: Taxpayers affected by terroristic action in Israel (October 7, 2023). See discussion of Notice 2023-71 (October 13, 2023) in Note following 3.21.3.8.2(e).

# Streamlined Filing Compliance Procedures

3.21.3.9.1 (02-10-2025) Streamlined Filing Compliance Procedures Treat as Streamlined Filing Compliance Procedures if any are present: Notation of "Streamlined Foreign Offshore" Notation of "Streamlined Domestic Offshore" Package of returns addressed to Mail Stop 6063 AUSC Taxpayer mentions the "Streamlined" procedures in an attached letter Returns postmarked on or after July 1, 2014 will follow the Streamlined Filing Compliance Procedures processing instructions as outlined at IRM 3.21.3.9.1.1. Submissions consisting only of Form 1040-NR are not processed using Streamlined Filing Compliance Procedures. Form 1040-NR must have been reviewed by LB&I per IRM 3.21.3.9.1.1 LB&I will indicate this by leaving an action trail in the left margin. Streamlined packages may contain a mixture of Form 1040, Form 1040-NR, and Dual-Status returns. Fully code all returns. Tag Form 1040-NR for rebatch with a purple rebatch tag. Mark the Streamlined 1040-NR box. Edit action trail "Streamlined Package Complete" in the left margin on each return in the package. Note: If the Form 1040 is the controlling document in a Dual-Status return, do not tag the return for rebatching. Unless otherwise instructed, it is important that all returns submitted by a taxpayer be kept together. Streamlined packages tagged for rebatching will require special handling. Form 1040-NR will be rebatched into appropriate programs. All program transmittals and returns must stay together through the remainder of the pipeline process. If Letter 4087C and/or an explanation stating that the taxpayer is responding to a 4087C is attached, or if there is an envelope addressed to MS 6126, treat as a "reply to Streamlined correspondence." Route the uncoded package to Rejects using the yellow Streamlined tag. Exception: Do not route to Rejects if a notation "Process as Original" or "PAO" is present on the return. All returns submitted under the Streamlined Filing Compliance Procedures must have a valid Taxpayer Identification Number (TIN). If a return submitted to the Streamlined Procedures is received without a Taxpayer Identification Number (TIN), search the package for a valid TIN. If no TIN is found, route the uncoded package to Entity Control for an IRSN using yellow Streamlined tag. Reminder: An IRSN must be assigned before the package can be routed to Statute. The assignment of an IRSN to a submission made by a taxpayer required to use an SSN does not constitute waiver by the IRS of the eligibility requirements for the Streamlined Filing Compliance Procedures. Any Streamlined package that contains any return marked amended/duplicate/copy or indication of Copy to ICT submitted under this procedure should be routed uncoded to LB&I at MS 4305 AUSC using yellow Streamlined tag. Note: If the Certification Form 14653 or Form 14654 is marked "Amended" , then the Streamlined package must be reviewed by LB&I before processing. If an amended certification form is attached to an amended return, and there isn't an indication of prior LB&I review, then route the package to MS 4305 AUSC using yellow Streamlined tag. Note: LB&I will review the returns and determine the actions that need to be taken by Submission Processing. Follow the directives provided by LB&I when the return is received back from LB&I review. LB&I will make the notations in the lower-left margin. Note: If a statute year Form 1040-X without an "AM Streamlined Cover sheet" attached has not been cleared by Statute, route the entire package uncoded to LB&I at MS 4305 AUSC using yellow Streamlined tag. If a return in the package requires Statute Clearance, route the entire uncoded package to LB&I, STOP 4305 AUSC. Exception: Statute year Form 1040-X received with an "AM Streamlined cover sheet" already attached or an LB&I reviewed notation or stamp do not need to be routed to LB&I. When the Attachment Guide requires routing the actual return to another department (e.g., Collections, Exam), route to LB&I MS 4305 AUSC by attaching the yellow Streamlined tag to the uncoded package, checking the "other" box, and writing the reason for routing to LB&I. When the Attachment Guide requires TC 150 research, route to LB&I MS 4305 AUSC by attaching the yellow Streamlined tag to the uncoded package and check the "TC 150 research" box. When attachments are received separated from returns (FBARs, certifications, correspondence, etc.), attach them to corresponding tax years. If the attachment does not correspond to a tax year, attach to the latest Streamlined tax year. Exception: If original BMF forms are listed on the certification, route entire package to LB&I at MS 4305 AUSC. Otherwise, route BMF forms to R&C and leave action trail on related tax year (if any). Take the following actions for completing the AM Streamlined Coversheet attached to Form 1040-X: Check the "YES" or "NO" box as appropriate, next to "SP Corresponded for Certification issue" to indicate whether correspondence is required for a Streamline certification issue. Circle the tax year(s) of the returns in the package other than Form(s) 1040-X. If the tax year(s) are not listed on the coversheet, edit and circle the tax years in the same area as the preprinted tax years on the coversheet.

# 2014 Streamlined Filing Compliance Procedures

3.21.3.9.1.1 (10-29-2025) 2014 Streamlined Filing Compliance Procedures Review all instructions in IRM 3.21.3.9.1 prior to processing with Streamlined Filing Compliance Procedures. All streamlined returns should be coded with SPC "P" . When a complete streamlined package is received, edit: CCC "M" CCC "P" CCC "R" Note: Do not edit CCC "N" if editing CCC "M" , CCC "P" , and CCC "R" . Caution: Do NOT edit CCC "M" , CCC "P," and CCC "R" if corresponding for a streamlined issue such as the certification. If CCC "M" , CCC "P" , and CCC "R" are not edited, see IRM 3.21.3.8.4 for CCC "N" instructions. The instructions for editing CCC "7" on streamlined returns will not apply if the return has CCC "M" , CCC "P" , and CCC "R" edited. Follow normal coding instructions as outlined in IRM 3.21.3 and IRM 3.11.3, Individual Income Tax Returns. If the package is incomplete, see IRM 3.21.3.9.1.2. Once it has been determined that a streamlined package is complete: If a copy of the certification is not attached to each tax year in the package, photocopy and attach. If the taxpayer provides an explanation on a separate statement, the statement must also be copied and attached to the return. Note: Use pink tag to indicate the number of copies and which returns need copies. Once all returns have a photocopy of the certification, detach the certification with the original signature. Route this original certification to LB&I, STOP 4305 AUSC, using blue routing tag. If a package contains Form 1040-X AND the certification is complete with all tax years: Separate the Form 1040-X. Caution: Do not separate/detach Form 1040 from Form 1040-X when both returns are for the same year. A copy of the certification MUST be attached to each Form 1040-X. Edit an action trail, "Streamlined Package Complete," in the left margin on each return in the package. When an AM Streamlined Coversheet is attached to each Form 1040-X in the package, route to ICT using a blue routing tag. Keep multiple Form 1040-X together. When a streamlined Form 1040-X is missing an AM Streamlined Coversheet, attach a yellow streamlined tag, check the box, "other," and notate, missing coversheet. Route to LB&I, STOP 4305 AUSC. Exception: If streamlined correspondence is required, follow IRM 3.21.3.9.1.2 (2).

# Correspondence for 2014 Streamlined Filing Compliance Procedures

3.21.3.9.1.2 (10-30-2024) Correspondence for 2014 Streamlined Filing Compliance Procedures If the items below are not submitted with a new Streamlined package, correspond: Items required for a complete Streamlined Foreign Offshore filing: - Original signature(s) of the taxpayer(s) under a jurat on at least one Certification. Note: If the tax return is married filing jointly then correspond if one or both signatures are missing. Exception: Any return received from LB&I with the notations of "Process as Streamlined" and "Reviewed by LB&I" and there is a copy of the original certification, do not correspond for original certification. - Form 14653 (Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures). Items required for a complete Streamlined Domestic Offshore filing: - Amount of taxpayer's miscellaneous offshore penalty (only packages with Form 1040-X require a penalty computation). - An original signature is required under a jurat on at least one certification. Note: If the tax return is married filing jointly then correspond if one or both signatures are missing using Form 13900. Exception: Any return received from LB&I with the notations of "Process as Streamlined" and "Reviewed by LB&I" and there is a copy of the original certification, do not correspond for original certification. - Form 14654 (Certification by U.S. Person Residing in the United States for Streamlined Domestic Offshore Procedures). Note: If the taxpayer submits Streamlined package with Form 14438 questionnaire instead of a certification, correspond using paragraph "E" instructing the taxpayer to follow current Streamlined procedures. Note: A substitute certification form is acceptable as long as it contains all of the relevant information listed above including a signature under a jurat. Correspond if missing. If any Streamlined correspondence is required, follow the instructions below: Use Form 13900 and only correspond on one tax year. Use Action Code "215" on each return, except Form 1040-X. Keep the package together - including any Form 1040-X. If correspondence is required AND there are NO Streamlined issues, follow the instructions below: Use Form 13900 to correspond. Use Action Code "215" on each return, except Form 1040-X. Keep the package together with the exception of Form 1040-X. Ensure each return has a copy of the certification and route the original certification to LB&I at MS 4305. Caution: If you are separating Form 1040-X, remember to complete the AM cover sheet and attach a copy of the certification to the return(s). Edit an action trail "Streamlined Package Complete" on each return in the package.

# Amended/Duplicate Returns Submitted for 2014 Streamlined Filing Compliance Procedures

3.21.3.9.1.3 (01-01-2015) Amended/Duplicate Returns Submitted for 2014 Streamlined Filing Compliance Procedures See IRM 3.21.3.9.1.1.

# Community Property or Registered Domestic Partnership Returns - General Information

3.21.3.9.2 (01-01-2018) Community Property or Registered Domestic Partnership Returns - General Information If taxpayers are married and are subject to the community property laws of a foreign country, a United States state, or a United States Territory, they generally must follow those laws to determine their income for United States tax purposes unless: Both taxpayers are nonresident aliens. One taxpayer is a nonresident alien and the other is a United States citizen or resident and they do not both choose to be treated as United States residents. If one taxpayer is a nonresident alien, the following rules apply to community income. Earned income of a spouse, other than trade or business income and a partner's distributive share of partnership income, is treated as the income of the taxpayer whose services produced the income. That taxpayer must report all of it on a separate tax return. Trade or business income, other than a partner distributive share of partnership income, is treated as the income of the person who exercises substantially all of the management and control over the trade or business. That taxpayer must report all of it on a separate return. Partnership income (or loss). A partner distributive share of partnership income is treated as the income (or loss) of the partner. The partner must report all of it on a separate return. Income derived from the separate property of one taxpayer (and which is not earned income, trade or business income, or partnership distributive share income) is treated as the income of that taxpayer. That taxpayer must report all of it on a separate return. Use the appropriate community property law to determine what is separate property. Note: Income can no longer be split under Community Property provisions. All other community income is treated as provided by the applicable community property laws.

# Decedent Return

3.21.3.10 (04-08-2025) Decedent Return For ALL international returns, see IRM 3.11.3.10 - IRM 3.11.3.10.6. Note: If using Form 9143 to correspond for a missing signature on a decedent return, mark boxes 1 and 24. In addition to the instructions above, special editing is required when an Additional Information Line (AIL) is required for a foreign address. If a foreign address AIL is present, and a decedent AIL is present or has been edited as a second AIL, take the following actions for a refund return: DO NOT edit CCC "L" or CCC "W" . Edit CCC "Y" and an action trail of "Manual Refund" . Exception: Do not edit CCC "Y," if CCC "3" has been edited. If the taxpayer has elected to use Direct Deposit or has been issued an IRSN, do not edit CCC "Y" . (An IRSN begins with a 9 and the middle two digits are other than 50-65, 70-88, 90-92 and 94-99. The middle two digits identify the campus location where it was issued.)

# Tax Period for International Returns

3.21.3.11 (01-01-2021) Tax Period for International Returns See IRM 3.21.3.84.1 for Form 1040-NR and Form 1040-NR-EZ specific instructions. Australian residents often use a June (06) fiscal tax period ending date that coincides with the Australian accounting period. Follow taxpayer intent and edit YY06 for the tax period when June 30th is indicated as the tax period ending date on the tax return for an Australian resident. New Zealand residents often use a March (03) fiscal tax period ending date that coincides with the individual New Zealand accounting period. Follow taxpayer intent and edit YY03 for the tax period when March 31st is indicated as the tax period ending date on the tax return for a New Zealand resident. U.K. residents use a fiscal tax period that ends on April 5th. For additional instructions refer to IRM 3.11.3.7, Tax Period. Caution: See IRM 3.21.3.84.1 for additional information Form 1040-NR or Form 1040-NR-EZ instructions.

# General Instructions for Editing All International Returns

3.21.3.12 (01-01-2019) General Instructions for Editing All International Returns The following subsections contain instructions for: Caption Information Taxpayer Identification Number Name and Additional Information Line Mailing Address City and State ZIP Code Country Name Additional instructions may be found within form-specific instructions.

# Caption Information and Editing

3.21.3.12.1 (01-01-2024) Caption Information and Editing Required Caption Information Includes: Primary Taxpayer Identification Number (P-TIN) Secondary Taxpayer Identification Number (S-TIN), if applicable Name(s) Additional Information Line (which may be present to further identify the taxpayer's location or representative) Mailing Address City/State Foreign Province/State or Territory/Foreign Mail Routing Code/Postal Code Country (if applicable) ZIP Code when available Do not change the name control when it has been edited in red by: Entity Unit, ITIN Operation, or RPS employee. Use the Entity/ITIN/RPS editing to perfect the: Name Control for the caption. TIN on attachments - Schedule C, Schedule EIC, Schedule H, Schedule SE, Form 2441, Form 4137, Form 5405Form 8839, Form 8853, Form 8863, Form 8919, Form 8941, and Form 8958. Note: The name control for a newly assigned TIN or IRSN may have been edited and underlined by the ITIN Operation or Entity Unit. Search the return and attachments for any missing caption information and perfect the caption if all missing information is found. For TY18, edit international address information from Schedule 6 to the caption if not already present when a complete address cannot be found elsewhere on the return. For additional instructions, see IRM 3.21.3.9.1 and IRM 3.11.3.9.2. In addition to these instructions, form specific instructions must be followed for Form 1040-NR and Form 1040-NR-EZ. See IRM 3.21.3.84.3 through IRM 3.21.3.84.5.

# Taxpayer Identification Number

3.21.3.12.2 (01-01-2015) Taxpayer Identification Number For complete instructions see IRM 3.11.3.9.2.1., Taxpayer Identification Number (TIN).

# Primary TIN

3.21.3.12.2.1 (01-01-2021) Primary TIN If the P-TIN is missing or incomplete, examine the return and its attachments and edit the P-TIN, if found. Circle an incomplete P-TIN. If there is an indication the taxpayer has used a TIN that is not their own, take no action. Example: The taxpayer shows an ITIN on the return and an SSN on attached Form(s) W-2. If the primary taxpayer's TIN includes a notation of "NRA" or "nonresident" and the secondary taxpayer has an SSN/ITIN and income, edit the secondary SSN/ITIN as the primary TIN and reverse the order of the names. See IRM 3.21.3.84.3.1.1 for Form 1040-NR and Form 1040-NR-EZ specific instructions. For additional instructions, see IRM 3.11.3.9.2.1.1., Primary TIN (P-TIN).

# Secondary TIN

3.21.3.12.2.2 (01-01-2020) Secondary TIN Edit the S-TIN from the return or attachments if it is missing or incomplete, and the Filing Status (FS) is "2," "3," or "6." Exception: A Secondary TIN is not allowed on a Form 1040-NR or Form 1040-NR-EZ. For additional instructions, see IRM 3.11.3.9.2.1.2 and IRM 3.21.3.84.4.1.

# Canadian TIN

3.21.3.12.2.3 (01-01-2015) Canadian TIN Canadian TIN: Canada assigns a Canadian TIN in a 3-3-3 (000-000-000) format. If it can be determined that the TIN is a Canadian TIN, examine the return and attachments for a TIN in a 3-2-4 (000-00-0000) format: If found, circle the Canadian TIN, and edit the correct U.S. TIN (000-00-0000 format). If not found, circle the Canadian TIN.

# ITIN

3.21.3.12.2.4 (01-01-2021) ITIN ITINs are issued to individuals who do not qualify for Social Security Numbers (SSNs). The ITIN is issued for tax purposes only and is obtained by completing a Form W-7, Application for IRS Individual Taxpayer Identification Number. Stop editing the return and take the following actions when Form W-7 or Form W-7 (SP) is attached to the return: Unnumbered: • Pull the return from the batch. Attach Form W-7 to the front of the return. • Edit the Received Date to the left of the line 6 area on Form W-7/Form W-7 (SP) in "MMDDYY" format and route the entire return to the ITIN unit. Numbered: Edit Action Code "610" .

# Internal Revenue Service Number (IRSN)

3.21.3.12.2.5 (10-30-2024) Internal Revenue Service Number (IRSN) These numbers are used for internal processing only when the taxpayer does not qualify for an SSN or ITIN. An IRSN will start with a 9 (nine) and the middle two digits are other than 50-65, 70-88, 90-92 and 94-99. The middle two digits identify the Campus location where it was issued from. The fourth and fifth digits for the Austin Campus are 06, 18, and 66.

# Name and Additional Information Lines

3.21.3.12.3 (01-01-2015) Name and Additional Information Lines Each return processed must have a legible last name. Research following local procedures when the name is illegible and cannot be perfected. There are two lines available for taxpayer identification: The name line is for the first name, middle initial and last name(s) of the primary and secondary (if present) taxpayer(s). This includes any suffix. The additional information line (AIL) is used to further identify the taxpayer or contain a foreign street address. Example: Additional name, address or representative information may be shown.

# Name Line

3.21.3.12.3.1 (01-01-2015) Name Line For complete instructions, see IRM 3.11.3.9.2.2.1, Name Line.

# Additional Information Line

3.21.3.12.3.2 (01-01-2024) Additional Information Line An AIL can contain the following information: A fiduciary, taxpayer representative, or in-care-of (c/o or %) information A parent signing for a minor child (see Figure 3.21.3-1) A location other than a street address (e.g., building, college, company) (see IRM 3.11.3.9.2.2.2, Additional Information Line (AIL)) Mailing address of a foreign country Note: A P.O. Box can be an AIL. Private Mailbox (PMB) For a Puerto Rico address, see IRM 3.21.3.12.3.3 If any of the above items listed in IRM 3.21.3.12.3.2 (1) are present, edit and/or underline the AIL. Exception: Do not underline the foreign mailing address if no province, city, or postal code is present. If a foreign address is present on Form 1040, Form 1040-A, or Form 1040-EZ and a name is present or has been edited as a second AIL, underline both. Then take the following actions for REFUND returns: For Decedent Returns, do not edit CCC "L" or CCC "W" . Edit CCC "Y" and an action trail of "Manual Refund" . Exception: Do not edit CCC "Y" , if CCC "3" has been edited. If the taxpayer has elected to use Direct Deposit or has been issued an IRSN, do not edit CCC "Y" .(An IRSN begins with a 9 and the middle two digits are other than 50-65, 70-88, 90-92 and 94-99. The middle two digits identify the Campus location where it was issued from. The fourth and fifth digits for the Austin Campus are 06, 18 and 66). For additional instructions, refer to IRM 3.11.3.9.2.2.2, Name Line and Additional Information Line. Figure 3.21.3-1 This figure contains two graphics. The first graphic represents the Form 1040 (page 1) with the entity portion completed.The name line is Negasso Cheleleka. MINOR is edited in red beside the name.On the Additional Information Line (AIL) of Form 1040, the name of Tedros Cheleleka is edited and underlined in red.The TIN is 000-00-3663.The street address is 5506 Shinfa St. It has been underlined in red.The city as Addis Ababa.The foreign country name is Ethiopia, which is edited with a red slash before and after Ethiopia and a dollar sign ($).The filing status is single. A Computer Condition Code (CCC) Y is edited in red in the blank space to the right of the right of Head of household (HOH) in the Filing Status area. This indicates that this return needs to be processed as a manual refund to ensure that the refund check is issued in the correct name.An action trail of Manual Refund is edited to the lower-left margin of Form 1040 in red.The second graphic represents the bottom half of Form 1040 (page 2), showing a refund of $120.67. The signature area contains the name Tedros Cheleleka, parent of a minor child. Please click here for the text description of the image.

# Additional Information Line (Puerto Rico)

3.21.3.12.3.3 (10-30-2024) Additional Information Line (Puerto Rico) The Additional Information Line (AIL) may be found anywhere in the caption area. Note: See IRM 3.21.3.12.3.3 (3)(g) below for examples of correct editing of address. When the name of a barrio, sector, subdivision or building name is present and a street address, P.O. Box or highway contract (HC) is also present, underline as the AIL the barrio, sector, urbanizations, subdivisions, or building name. Caution: Do Not underline it if its the only element of the mailing address. In the table below are common abbreviations used to refer to urbanizations, subdivisions, buildings, and Private Mailboxes. Exception: If a building (edificio) is a necessary part of the main address instead of just additional information, don't underline it as an AIL. Abbreviations Urbanizations, Subdivisions, and Buildings ALT Altura ALTS Alturas BDA Barriada BO Barrio COLINAS Colinas COND Condominio COOP Cooperativa DEPT Departamento EDIF or EDF Edificio EST Estancias EXT Extension IND Industrial JARD Jardines MANS Mansiones PARC Parcelas PARQ Parque PMB Private Mailbox PUERTO Puerto QBDA Quebrada QTAS Quintas RPTO Reparto RES Residencial SECC Seccion SECT Sector TERR Terraza URB Urbanizacion VILLA Villa For Puerto Rico only, the following are different types of address formats: Four-line address containing Name, Urbanization, House Number and Street Name, City, State, and ZIP Code. Note: Underline the subdivision, sector, urbanization information as the AIL. Three-line address containing Name, House Number and Street Name, City, State, and ZIP Code. Exception: Some areas in Puerto Rico do not have street names or repetitive house numbers. The urbanization name substitutes as the street name and becomes the primary identifier. Example: Name, House Number and Urbanization Name, City, State, and ZIP Code. No AIL is needed Public Housing Projects (residenciales) without street names or repetitive apartment numbers. In these cases, the apartment number is the primary number and the public housing project becomes the street name. Example: Name, Apartment Number and Residential Name, City, State, and ZIP Code. Apartment Buildings and Condominiums with a physical (street) address containing Name, Building Name, Street Number, Apartment Number, City, State, and ZIP Code. Buildings without a physical address. Certain Condominiums are located on an unnamed street and may not have an assigned number. The name of the Condominium substitutes as the street name and the number 1 is used when no building number exists. Urbanization - denotes an area, sector or residential development within a geographic area. Commonly used in Puerto Rico urban areas, it is an important part of the addressing format, as it describes the location of a specific street. In Puerto Rico, identical street names and address number ranges can be found within the same ZIP Code. In these cases, the urbanization name is the only element that correctly identifies the location of a particular address. Generally, the abbreviation URB is placed before the urbanization name. Below is a table of examples of correct address coding: Tax Return Address Correct Coding URB. Jardines de San Blas A-4 URB. Jardines de San Blas A-4 Estancias De Tortuguero, 521 Calle Tulipa Estancias De Tortuguero 521 Calle Tulipa Bo Rocha Comunidad LaSalle HC 02 Box 12811 Bo Rocha Comunidad LaSalle HC 02 Box 12811 Puerto Nuevo 512 Calle Aragon Puerto Nuevo 512 Calle Aragon Urb San Rafael EST Calle Violeta E-19 Buzon 246 Urb San Rafael EST Calle Violeta E-19 Buzon 246 Cond. Hato Rey Plaza Jesus T Pinero #200 Apt 6-M Cond. Hato Rey Plaza Jesus T Pinero #200 Apt 6-M URB Ciudad Jardin de Bairoa 88 Calle Franca URB Ciudad Jardin de Bairoa 88 Calle Franca Villa Fortuna / Via Leticia 4LS-10 Villa Fortuna Via Leticia 4LS-10 Plaza Antillana 151 Calle Caesar Gonzalez Apt 6203 Plaza Antillana 151 Calle Caesar Gonzalez Apt 6203 Reina de Los Angeles U-11 Calle 1 Reina de Los Angeles U-11 Calle 1

# Mailing Address

3.21.3.12.4 (10-29-2025) Mailing Address There are two types of international mailing addresses: U.S. Territory address Note: Edit U.S. Territory addresses the same way as domestic addresses. Foreign Country address (address not within the 50 United States, District of Columbia, or any U.S. Territory) For domestic addresses, refer to IRM 3.11.3.9.2.3, Mailing Address.

# International Mailing Address

3.21.3.12.4.1 (10-29-2025) International Mailing Address A U.S. Territory Address includes: Street Address - if the street address is missing or incomplete, underline the name control. Caution: Do not delete any reference of Urbanization or URB for Puerto Rico. Note: For Puerto Rico address AIL editing, see IRM 3.21.3.12.3.3. Note: Multiple Addresses or no Mailing Address, see IRM 3.11.3, Individual Income Tax Returns . City U.S. Territory - must be abbreviated with a valid two (2) character state abbreviation. Circle out the U.S. Territory, and edit the abbreviation listed below. See Figure 3.21.3-2: • AS - American Samoa • GU - Guam • MP - Commonwealth of the Northern Mariana Islands • PR - Puerto Rico • VI - Virgin Islands ZIP Code - Edit the ZIP code, if missing. See Exhibit 3.21.3-6 and Figure 3.21.3-3 if unable to edit the ZIP code. Reminder: Edit U.S. Territory Addresses the same was as domestic addresses. Figure 3.21.3-2 This figure represents the top portion of a Form 1040 (page 1) with the entity section completed:The taxpayer's name is Barbara Imong.The TIN is 000-00-3345.The street address is 7421 Paulana Court.The city is listed as Dededo, Guam. Guam has been circled in red.The state field was empty, but has been edited in red with GU (the two alpha character abbreviation for Guam).The ZIP code is 96912. Please click here for the text description of the image. Figure 3.21.3-3 This figure represents the top portion of a Form 1040 (page 1) with the entity section completed:The taxpayer name is Daniel Prieto.The TIN is 000-00-1584.The street address is URB Cayures 1693 Calle Yauco. URB Cayures is underlined in red because an URB must be shown as the Additional Information Line (AIL).The city is listed as Arecibo, Puerto Rico. Puerto Rico has been circled in red.The state field was empty but has been edited in red with PR (the two character alpha abbreviation for Puerto Rico).There was no ZIP code. All territory returns must have a ZIP Code, so 00612 (from Exhibit 3.21.3-6) has been edited in red Please click here for the text description of the image. Federated States of Micronesia, Marshall Islands, and Palau are not territories, but they use the same addressing method as U.S. territories: Street Address City Country name abbreviated with a valid two (2) character state abbreviation. Circle out the country name, and edit the abbreviation listed below: FM - Federated States of Micronesia MH - Marshall Islands PW - Palau ZIP Code - edit the ZIP code if missing. See Exhibit 3.21.3-6 if unable to edit the ZIP code. A Foreign Country Address includes: Street Address - underline the street address or location as the additional information line Caution: When an address is short (if all of the following are missing: city, state, province, and postal code), such as those from Hong Kong, the use of an AIL is not needed - Do Not Underline the AIL, but do /country/$. See Figure 3.21.3-4. Note: If a P.O. Box and street address are present, underline both as the AIL. Note: If the street address is missing or incomplete, refer to IRM 3.11.3.9.2.3, Mailing Address. City Foreign Province/State/County and Foreign mail routing code/postal code Foreign Country Name in a /country name/$ format (see Figure 3.21.3-5) If a domestic and foreign address are both present, circle out the foreign address. Note: If the deleted address is the only foreign aspect of the return, rebatch the coded return to a domestic program. Figure 3.21.3-4 This figure contains two (2) separate examples: Example 1 represents the top portion of a Form 1040 (page 1) with the entity section completed:The filing status is single.The name is Benedict Kiu Tsui.The TIN is 000-00-1972.The street address is 601 Pat Sin Leng St. The Foreign country is Hong Kong. The country of Hong Kong has a slash before and after the country name edited in red, along with a dollar sign ($).Beneath the figure it says: Do NOT underline the street address, when there is NO city, province or postal code entered by the taxpayer.Example 2 represents the top portion of Form 1040 (page 1) with the entity section completed:The filing status is single.The name is Inez Sheung Yue.The TIN is 000-00-5536.The street address is 512 Ma Wat St. which is underlined in red as the Additional Information Line.The city and foreign country are both listed as Hong Kong. The city line is left unedited and the Hong Kong on the country line has a slash before and after the country name edited in red, along with a dollar sign ($).Beneath the figure it says: Underline the street address as an AIL when there is an entry for city, province or postal code. Please click here for the text description of the image. Figure 3.21.3-5 This figure represents the top portion of a Form 1040 (page 1) with the entity section completed:The filing status is single.The name is Dawn Magenta.The TIN is 000-00-1016.The street address is 8805 Bronze Drive is underlined in red.The city is Road Town.The country is British Virgin Islands. British Virgin Islands has been edited by circling Virgin Islands and editing a red VI in its place, resulting in British VI. A slash is edited in red before the word British and after VI, with a dollar sign ($) after the slash.The text underneath the figure reads: British VI is not a U.S. Territory and should be blocked in FLC - 20. British Virgin Islands edited as British VI per IRM 3.21.3.12.6(5). Please click here for the text description of the image.

# City

3.21.3.12.4.2 (01-01-2021) City Many cities share names with states/provinces or countries. Do not delete the city name. For domestic addresses, refer to IRM 3.11.3.9.2.4, City.

# State

3.21.3.12.4.3 (01-01-2021) State For domestic addresses, refer to IRM 3.11.3.9.2.5, State.

# Province/State/County of Foreign Addresses

3.21.3.12.4.4 (01-01-2015) Province/State/County of Foreign Addresses States/provinces/counties for the countries listed below must be abbreviated. Circle out the state/province/county, and edit the abbreviation in its place. See Exhibit 3.21.3-5 for a list of abbreviations. Australia Brazil Canada Cuba Italy Mexico Netherlands Caution: Many cities share names with states/provinces. Do not delete or abbreviate a city name. Note: See Figure 3.21.3-6 for coding examples. Figure 3.21.3-6 This figure contains two separate examples. The first example represents the top portion of Form 1040 (page 1) with the entity section completed:The filing status is single.The name is Genoveva Mololoa Sacromonte.The TIN is 000-00-2580.The street address is 669 Camino El Cimitario The apartment number is 5. (A red underline runs from the street address to the apartment number as the AIL).The city is Guadalajara.The country is Mexico. A slash is edited in red before and after Mexico, along with a dollar sign.The foreign province/state/county is Jalisco. Jalisco has been circled in red and JAL was edited in red as the official abbreviation.The second example represents the top portion of Form 1040 (page 1) with the entity section completed:The filing status is single.The name is Monica Fortescue.The TIN is 000-00-5068.The street address is 510 Tooloom St. (which is underlined in red).The city is Sydney.The foreign country name is Australia. A slash is edited in red before and after Australia, along with a dollar sign.The foreign province/state/county is New South Wales. New South Wales has been circled in red and NSW was edited in red as the official abbreviation.The foreign postal code is 2000. Please click here for the text description of the image.

# ZIP Code and Foreign Postal Code (International Mail Routing)

3.21.3.12.4.5 (10-30-2024) ZIP Code and Foreign Postal Code (International Mail Routing) U.S. territories must have a ZIP Code; edit if missing. See Exhibit 3.21.3-6. A mail routing code/postal code for foreign addresses can contain alpha and/or numeric characters. If missing, edit the mail routing code following the state or province if it can be readily determined. See Figure 3.21.3-7. Note: If the foreign postal code is 00000, take no action. For domestic addresses, see IRM 3.11.3.9.2.6, ZIP Code. Figure 3.21.3-7 This figure represents the top portion of a Form 1040 (page 1) with the entity section completed:The filing status is single.The name is Cindy Kazan.The TIN is 000-00-9275.The street address as 2846 Pelly St. (which is underlined in red).The city is Montreal.The country is Canada. A slash is edited in red before and after the country name of Canada, along with a dollar sign.The foreign province/state/county is Quebec. The city of Quebec has been circled in red and QC was edited in red as the official abbreviation.The foreign postal code was originally blank, but has been edited in red with H3B5G5.041526 is edited in red in the filing status area to the right of Single filing status checkbox.Canada uses mail routing codes instead of ZIP codes and should be edited if available. The return envelope is attached which contains a matching address with the code (H3B 5G5), which was entered in the foreign postal code box. Please click here for the text description of the image.

# APO/FPO/DPO Addresses

3.21.3.12.5 (01-01-2020) APO/FPO/DPO Addresses APO/FPO/DPO addresses are military mail addresses. APO/FPO/DPO addresses are considered domestic addresses. APO, FPO or DPO serves as the city name in the mailing address and AA, AE or AP serves as the state code. Military mail is first mailed to a central processing center in a U.S. city and then transferred to the military mail system. If the taxpayer provides the U.S. city name, circle the city, and edit the appropriate state code using the table below: City Edit State Code Miami, FL AA New York, NY AE San Francisco, CA AP If the taxpayer provides the name of a foreign city or country, circle the foreign city or country name, and edit the appropriate state code using the table below: If the foreign city/country is located in Edit State Code Central America, South America, or the Caribbean AA Europe, the Middle East, Africa, or Canada AE Asia or the Pacific AP For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Country Name

3.21.3.12.6 (02-10-2025) Country Name The name of the country in a foreign address must be edited using "/Country/$." Caution: If a foreign city/country is present, along with an APO/DPO/FPO address, circle the foreign address, leaving the APO/DPO/FPO address. If a domestic and foreign address are both present, circle out the foreign address. Note: If the deleted address is the only foreign aspect of the return, rebatch the coded return as domestic. When an address is short (if all the following are missing: city, state, province, and postal code), such as those from Hong Kong, the use of an AIL is not needed - Do Not Underline the AIL, but edit /Country/$. See Figure 3.21.3-4. If the country is missing and it can be readily determined, edit the country. See Exhibit 3.21.3-7. The country name in a foreign address must be spelled out. See examples below and Figure 3.21.3-8: UAE - circle and edit /United Arab Emirates/$ UK - circle and edit /United Kingdom/$ ROC - circle and edit /Taiwan/$ SAR - circle and edit /Hong Kong/$ or /Macau/$, as appropriate PRC or PROC - circle and edit /China/$ Exception: The countries listed below must be abbreviated as follows: Country Abbreviation Ashmore and Cartier Islands Ashmore and Cartier Is Bosnia and Herzegovina Bosnia Herzegovina British Indian Ocean Territory British Indian Oc Terr British Virgin Islands British VI Central African Republic Central African Rep French Southern and Antarctic Lands FR Southern Antarctic Heard Island and McDonald Islands Heard Is McDonald Is Macedonia, The Former Yugoslav Republic of; or Macedonia North Macedonia Saint Pierre and Miquelon St Pierre Miquelon Saint Vincent and The Grenadines St Vincent Grenadines Serbia and Montenegro Serbia Montenegro South Georgia and The South Sandwich Islands S Georgia S Sandwich Turks and Caicos Islands Turks and Caicos Is Figure 3.21.3-8 This figure represents the top portion of Form 1040 (page 1) with the entity section completed:The filing status is single.The name is Abra Al Awir.The TIN is 000-00-7506.The street address is 96 Khawr Ajman (which is underlined in red.)The city is Dubai.The country name was entered as UAE. UAE is circled in red and United Arab Emirates is edited in red on the foreign country name line of the entity. The country is shown with a red slash edited before and after, along with a dollar sign. Please click here for the text description of the image. Hong Kong and China are considered separate countries for tax purposes. If the taxpayer puts "Hong Kong China" as the country in the caption area, circle out China. Macau (or Macao) and China are considered separate countries for tax purposes. If the taxpayer puts "Macau (or Macao) China" as the country in the caption area, circle out China. If the country name contains, "Republic of," or "Kingdom of," edit to leave the country name. Exception: If R.O.C. or Republic of China is present in the caption, circle and edit "/Taiwan/$." If any of the countries that are part of the United Kingdom (Great Britain, England, Northern Ireland, Scotland, and Wales) are present in the caption, circle and edit the country as "/United Kingdom/$." Accept Palestine, Palestinian Territories, or similar as the country name when no other country is present in the caption area.

# Filing Status Editing - General Information for Form 1040/Form 1040-A/Form 1040-EZ

3.21.3.13 (10-30-2024) Filing Status Editing - General Information for Form 1040/Form 1040-A/Form 1040-EZ The filing status (FS) is used to determine the taxpayer's standard deduction amount, eligibility for the earned income tax credit, and to compute their tax. The instructions in this subsection are for determining and editing the correct FS when processing Form 1040, Form 1040-A, or Form 1040-EZ. Reminder: Form 1040-A and Form 1040-EZ are valid for TY17 and prior only. Edit the filing status by either checking the appropriate box or by editing the Filing Status Code (FSC) to the appropriate area. The meanings of the filing status codes are: FSC "1" - Single FSC "2" - Married filing jointly FSC "3" - Married filing separately (MFS) (spouse dependent/exemption is not claimed) FSC "4" - Head of household (HOH) FSC "5" - Qualifying surviving spouse (QSS) FSC "6" - Married filing separately (MFS) (spouse dependent/exemption is claimed) Edit CCC "Q" when the filing status is 4 or 5, there are no dependents listed on the return, and a qualifying non-dependent is listed: In the filing status section of the return, On Form 2441 with SSN of Qualifying Non-Dependent, On Form 8814 with SSN of Qualifying Non-Dependent, or On Schedule EIC with SSN of Qualifying Non-Dependent.

# Determining the Filing Status

3.21.3.13.1 (01-01-2019) Determining the Filing Status For complete instructions see IRM 3.11.3.12.2 - IRM 3.11.3.12.2.5.

# Dependents for Form 1040/Form 1040A

3.21.3.14 (01-01-2020) Dependents for Form 1040/Form 1040A For complete instructions, see IRM 3.11.3.13, Dependents. Exception: The instruction to edit a dependent that did not live in the United States to position 5 does not apply when the dependent lived with the taxpayer in a foreign country or U.S. territory.

# Dependent Coding

3.21.3.14.1 (03-04-2022) Dependent Coding For complete instructions, see IRM 3.11.3.13.1, Dependent Coding.

# Dependent Name Control and TIN

3.21.3.14.2 (03-04-2022) Dependent Name Control and TIN For complete instructions, see IRM 3.11.3.13.2.2, Dependent's Name Control.

# Form 1040 - General Information

3.21.3.15 (10-29-2025) Form 1040 - General Information Some returns require special editing procedures. The tax examiner must review the return for taxpayer notations or other indications of the conditions found in the Special Returns section in IRM 3.21.3.9 or IRM 3.11.3, Individual Income Tax Returns. Page 1 of Form 1040 includes checkboxes that are not transcribed. These include: Filed pursuant to section 301.9100-2 checkbox at top of form Combat zone and other checkbox on top of form Deceased checkbox and date Nonresident alien or dual-status alien checkbox in filing status area If there is any indication that the taxpayer is claiming the benefit of Article XXV (Non-Discrimination) of the U.S.-Canada Income Tax Treaty (e.g., notated by the taxpayer in the top-center margin of the tax return) and Form 1040-NR is not attached, correspond for Form 1040-NR using Form 9143. Note: Use the following literal when corresponding for Article XXV (Non-Discrimination): "If you are claiming Article XXV of the U.S. - Canada Income Tax Treaty, you must file Form 1040-NR. Please complete, sign, and return Form 1040-NR along with all necessary forms, schedules, and federal tax withholding statements."

# Income, Adjustments, and Credits - Lines 1a Through 33

3.21.3.15.1 (01-01-2023) Income, Adjustments, and Credits - Lines 1a Through 33 Edit amounts on lines 1a through 23 in dollars only. Edit amounts on lines 24 through 33 in dollars and cents.

# Line 1a - Total Amount from Form(s) W-2, Box 1

3.21.3.15.1.1 (10-30-2024) Line 1a - Total Amount from Form(s) W-2, Box 1 If the taxpayer claims exempt income under IRC 933 on Form 1040, Form 1040-A (TY17 and prior), or Form 1040-EZ (TY17 and prior), see IRM 3.21.3.80.2. If the taxpayer claims an exclusion under IRC 931 on Form 1040, Form 1040-A (TY17 and prior), or Form 1040-EZ (TY17 and prior), see IRM 3.21.3.76.1.2. If the taxpayer claims exempt income under IRC 893 or 871, see IRM 3.21.3.16.9. If the taxpayer exempts income under IRC 911 or claims the Foreign Earned Income Exclusion on Schedule 1, line 8d or 8z, see IRM 3.21.3.42.1. Caution: If a Foreign Earned Income Exclusion is claimed on Schedule 1, line 8d or 8z, ensure that the taxpayer reported all the related earned income either on Form 1040 on lines 1a through 1h or on Schedule 1 on line 3, 5, or 6. If the taxpayer did not report the earned income, edit the income to a line as follows: edit Form W-2, box 1 income to Form 1040, line 1a; edit income that belongs on Form 1040, lines 1b through 1h to Form 1040, line 1z; edit Schedule C income to Schedule 1, line 3; edit Schedule E income to Schedule 1, line 5; and edit Schedule F income to Schedule 1, line 6. If source of income cannot be determined, edit income to line 1a. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Line 1b - Household Employee Wages (HSH) (Not Transcribed)

3.21.3.15.1.2 (01-01-2023) Line 1b - Household Employee Wages (HSH) (Not Transcribed) If an amount is present on line 1b, edit SPC "E" .

# Line 1e - Taxable Dependent Care Benefits (DCB) - Form 2441 (Not Transcribed)

3.21.3.15.1.3 (01-01-2023) Line 1e - Taxable Dependent Care Benefits (DCB) - Form 2441 (Not Transcribed) If an amount is present on line 1e, Form 2441 must be attached. If missing, correspond for Form 2441.

# Line 1f - Employer-Provided Adoption Benefits - Form 8839 (Not Transcribed)

3.21.3.15.1.4 (01-01-2023) Line 1f - Employer-Provided Adoption Benefits - Form 8839 (Not Transcribed) If an amount is present on line 1f, Form 8839 must be attached. If missing, correspond for Form 8839.

# Line 1g - Wages - Form 8919 (Not Transcribed)

3.21.3.15.1.5 (01-01-2023) Line 1g - Wages - Form 8919 (Not Transcribed) If an amount is present on line 1g, Form 8919 must be attached. If missing, correspond for Form 8919.

# Line 1i - Nontaxable Combat Pay Election

3.21.3.15.1.6 (01-01-2023) Line 1i - Nontaxable Combat Pay Election Nontaxable Combat Pay is entered on line 1i. If found elsewhere on return, delete where found and edit to line 1i.

# Line 1z - Total Wages

3.21.3.15.1.7 (10-30-2024) Line 1z - Total Wages Compute and edit line 1z when it is blank, dash or zero and there are any entries on lines 1a through 1h.

# Lines 2a and 2b - Tax-Exempt Interest (TEI) and Taxable Interest Income

3.21.3.15.1.8 (01-01-2019) Lines 2a and 2b - Tax-Exempt Interest (TEI) and Taxable Interest Income For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Lines 3a and 3b - Qualified Dividends and Ordinary Dividends

3.21.3.15.1.9 (01-01-2021) Lines 3a and 3b - Qualified Dividends and Ordinary Dividends For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Lines 4a and 4b - IRA Distributions (Taxable IRA Distributions)

3.21.3.15.1.10 (01-01-2021) Lines 4a and 4b - IRA Distributions (Taxable IRA Distributions) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Lines 5a and 5b - Pensions and Annuities (Taxable Pensions and Annuities)

3.21.3.15.1.11 (01-01-2021) Lines 5a and 5b - Pensions and Annuities (Taxable Pensions and Annuities) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Lines 6a, 6b, and 6c - Social Security Benefits (Taxable Social Security Benefits)

3.21.3.15.1.12 (01-01-2023) Lines 6a, 6b, and 6c - Social Security Benefits (Taxable Social Security Benefits) If the taxpayer resides in one of the countries listed below, "X" any reported Social Security Benefits where found: Canada Egypt Germany Ireland Israel Italy (must also be a citizen of Italy for the exemption to apply) Note: In order for Italy to qualify, they must have an Italian address. Romania United Kingdom (including Great Britain, England, Northern Ireland, Scotland, and Wales) If Social Security income, Form SSA-1042S, Form RRB-1042S, and withholding are the only income/withholding reported on the return, see IRM 3.21.3.15.1.29. If the taxpayer reports worldwide income (income from all sources and includes foreign and U.S. income) (i.e., there are multiple types of income and/or withholding reported on the return) AND the only "questionable" aspect of the return is the presence of Form SSA-1042S, process the return as submitted and edit Form SSA-1042S withholding to the dotted portion of line 33 of Form 1040. Edit CCC "H" when the taxpayer marks the line 6c box. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Line 7a - Capital Gain or Loss

3.21.3.15.1.13 (01-01-2021) Line 7a - Capital Gain or Loss For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Line 8 - Other Income

3.21.3.15.1.14 (01-01-2021) Line 8 - Other Income For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Line 9 - Total Income

3.21.3.15.1.15 (10-30-2024) Line 9 - Total Income Compute and edit line 9 when it is blank, dash, or zero and there are any entries on lines 1z, 2b, 3b, 4b, 5b, 6b, 7a, or 8. Exception: Do not adjust or compute line 9 if making an adjustment to Form 1040, line 1a or Schedule 1, line 9.

# Line 10 - Adjustments to Income

3.21.3.15.1.16 (01-01-2020) Line 10 - Adjustments to Income For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Line 11a - Adjusted Gross Income

3.21.3.15.1.17 (01-01-2021) Line 11a - Adjusted Gross Income Compute and edit line 11a when it is blank, dash, zero, or illegible by subtracting line 10 from line 9.

# Line 12e - Standard Deduction or Itemized Deductions (Not Transcribed)

3.21.3.15.1.18 (01-01-2023) Line 12e - Standard Deduction or Itemized Deductions (Not Transcribed) If there is an indication near line 12e or a statement for line 12e that the taxpayer is prorating their standard deduction under IRC 933, accept the taxpayer's prorated amount for the standard deduction. Do not correspond for Schedule A. For additional instructions, see IRM 3.11.3.14.2.20, Standard Deduction or Itemized Deductions.

# Line 13a - Qualified Business Income Deduction

3.21.3.15.1.19 (01-01-2023) Line 13a - Qualified Business Income Deduction If an amount is present, Form 8995 or Form 8995-A must be attached. If missing, correspond for Form 8995-A. Note: See IRM 3.11.3, Form 8995 / 8995-A / 8995-A Schedule C - Qualified Business Income Deduction, for possible editing of FPC "H" .

# Line 13b - Additional Deductions (Not Transcribed)

3.21.3.15.1.20 (10-29-2025) Line 13b - Additional Deductions (Not Transcribed) If an amount is present on line 13b, Schedule 1-A must be attached. If not attached, correspond for Schedule 1-A.

# Line 15 - Taxable Income

3.21.3.15.1.21 (01-01-2021) Line 15 - Taxable Income For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Line 16 - Tax

3.21.3.15.1.22 (11-12-2021) Line 16 - Tax For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Line 17 - Additional Taxes (Not Transcribed)

3.21.3.15.1.23 (11-12-2021) Line 17 - Additional Taxes (Not Transcribed) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Line 19 - Child Tax Credit or Credit for Other Dependents - Schedule 8812

3.21.3.15.1.24 (07-19-2023) Line 19 - Child Tax Credit or Credit for Other Dependents - Schedule 8812 Reserved

# Line 20 - Nonrefundable Credits (Not Transcribed)

3.21.3.15.1.25 (01-01-2021) Line 20 - Nonrefundable Credits (Not Transcribed) If an amount is present on line 20, Schedule 3 must be attached. Correspond, if missing. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Line 21 - Total Statutory Credits

3.21.3.15.1.26 (11-12-2021) Line 21 - Total Statutory Credits Compute and edit line 21 when it is blank, dash, zero, or illegible by adding lines 19 and 20.

# Line 23 - Other Taxes

3.21.3.15.1.27 (10-30-2024) Line 23 - Other Taxes If an amount is present on line 23, and Schedule 2 is not attached or Schedule 2 is attached and lines 4 through 20 are blank, correspond for Schedule 2. Exception: If a Schedule 2 can be dummied from attachments, do not correspond unless already corresponding for other missing information. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Line 24 - Total Tax

3.21.3.15.1.28 (01-01-2021) Line 24 - Total Tax For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Lines 25a through 25d - Withholding

3.21.3.15.1.29 (10-29-2025) Lines 25a through 25d - Withholding U.S. source income is reported on Form W-2, Form 1042-S, Form SSA-1042S, Form RRB-1042S, Form 1099 series, Form 8805, Form 8288-A, or a statement of income. Valid sources of U.S. Withholding include Form W-2, Form SSA-1042S, Form RRB-1042S, Form 1042-S, Form 1099 series, Form 8805, Form 8288-A, and Form 8959. Review all withholding documents to ensure that the withholding amounts claimed by the taxpayer are U.S. Withholding (Federal Income Tax Withheld). Withholding from Guam (Form W-2 GU) and CNMI (Form W-2 CM) can be claimed on lines 25a through 25d. Caution: If the only income on the return is from Guam, see IRM 3.21.3.77, or from the Commonwealth of the Northern Mariana Islands, see IRM 3.21.3.78. If the return contains withholding from American Samoa (Form W-2AS), Puerto Rico (Form 499R-2/Form W-2PR), or Virgin Islands (Form W-2VI), take one of the following actions: If all of the withholding is from American Samoa (Form W-2AS), Puerto Rico (Form 499R-2/Form W-2PR), or Virgin Islands (Form W-2VI), "X" withholding on line 25d. Caution: If the only income on the return is from American Samoa, see IRM 3.21.3.76; from Virgin Islands, see IRM 3.21.3.79; or from Puerto Rico, see IRM 3.21.3.80. If U.S. withholding is also claimed, adjust the withholding amount to include only the U.S. withholding. If line 25d is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and a source of withholding is not attached, correspond for withholding support if unable to verify the amount through research. Minimum requirements for substitute statement are: Name of Employer or EIN, Income, and Withholding. Exception: If the research indicates the withholding is claimed from Form 1042-S, correspond for withholding support. Note: Research IRP for withholding (when available) before corresponding. Do not research if corresponding for other missing information. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Follow the instructions below for line 25d: If Line 25d is And Then Blank, Dash, or Zero At least one source of withholding is present on Form W-2, Form W-2G, Form 1099 (series), or IRS Transcript Edit the withholding amount(s) to line 25d. Exception: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Blank, dash, zero or illegible Lines 25a through 25c have entries Compute by adding the amounts together Any amount and support for the withholding is present Any withholding is from: Form 1099-OID or Form 1099-A Refer the return to Frivolous Return Program (FRP). Any amount The supporting withholding document is a foreign document "X" line 25d. Edit CCC "8" on a refund return when withholding is significant and there is only a single supporting document attached that is one of the following: A substitute statement (e.g., substitute Form W-2, tax software statement or employer-provided earnings statement with year-to-date totals) or attachment or worksheet Note: If the only support for withholding is from a single or multiple Form 4852 and there are no other withholding documentation is present, edit CCC "8" . Handwritten Other than computer-printed Form W-2 Altered name, SSN, wages, or federal income tax withheld Exception: Do not edit CCC "8" when Form 1099-R, Form W-2G, or IRS transcript is attached, or if the return is identified as a military or combat zone return. Note: To be considered a "single supporting document," the document must show support from only one employer. Consider Form 4852 and an employer-provided earnings statement with the same employer and identical amounts to be a "single supporting document" . If Form 1042-S is attached to Form 1040, take the following actions: If Then Refund and the only income reported is from the Form 1042-S Correspond for filer's U.S. status, using Form 9143, box 24. Exception: Do not correspond if the taxpayer states they are a U.S. Resident Alien or the taxpayer has provided a copy of their resident alien card. Delete Form 1042-S withholding from line 25d and edit to the dotted portion of line 33. "Worldwide Income" (income from all sources and includes foreign and U.S. income) is reported or the return is other than a refund Delete Form 1042-S withholding from line 25d and edit to the dotted portion of line 33. If Form 8805 withholding is reported on line 25d, delete Form 8805 withholding from line 25d and edit to the dotted portion of line 33, Form 1040. If the TIN on Form 8805 is missing or other than the TIN in the caption area, and the credit is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"X" the credit where reported. Exception: If an ITIN has been newly assigned (edited in red), but is not on Form 8805, do not "X" the credit if the name on Form 8805 matches the taxpayer name on the return. Note: Any statement or document from a withholding agent that is submitted in lieu of Form 8805 must include the name and address of the U.S. withholding agent, the agent's U.S. TIN (EIN or SSN), and the name in which the tax withheld was reported. If the name or TIN of the taxpayer claiming the refund is different or withholding agent information is not included, "X" the credit. If Form 8288-A is attached or noted on any line, follow the instructions in IRM 3.21.3.15.1.29 (10), IRM 3.21.3.15.1.29 (11), and IRM 3.21.3.15.1.29 (12). If any Form 8288-A credit is claimed, verify that Form 8288-A is attached and the Date of Transfer (DOT) on Form 8288-A (box 1) is within the Tax Period of the return being filed. If Form 8288-A or a signed or initialed settlement statement/closing agreement is not attached, correspond. If the Date of Transfer on Form 8288-A (box 1) or the signed or initialed settlement statement/closing agreement is not within the Tax Period of the return, "X" the entry where reported and edit only the credit(s) that are within the tax period of the return. If the return is being filed for a fiscal period, verify that the Date of Transfer falls within the fiscal period. Caution: If "Original DOT" is notated on the top right side of Form 8288-A, accept that date as the official Date of Transfer. If the Date of Transfer on Form 8288-A is in 2026 and: The return is numbered, "X" the credit(s). The return is unnumbered and Form 843 is attached, detach Form 843 along with Form 8288-A and route to Accounts Management. "X" line 25d and process the return. The return is unnumbered and Form 843 is not attached, send the return back to the taxpayer. Correspond using Form 9143, box 25. Reminder: If "Original DOT" is notated on the top right side of Form 8288-A, accept that date as the official Date of Transfer. All Form 8288-A credits must be verified following procedures in IRM 3.21.25.17. If Form 8288-A is attached with a Date of Transfer within the Tax Period of the return, and the return is: Numbered: Request verification of the credit from the FIRPTA Unit and edit Action Code "420" . Unnumbered: Follow the table below If And Then Credits have not been verified Completely code and edit the return, then place return in designated area for verification. Note: The verification slip (Form 13698) or printout is attached to the tax form after the credit verification is completed. Credits are verified The verified amount is the same or greater than the amount the taxpayer reported, Delete the Form 8288-A credit from line 25d and edit the taxpayer's entry on the dotted portion of line 33. Credits are verified The verified amount is less than the amount the taxpayer reported, "X" the amount reported by the taxpayer. Delete the amount from line 25d and edit the verified amount to the dotted portion of line 33. Delete the Form SSA-1042S/Form RRB-1042S withholding from line 25d and edit Form SSA-1042S/Form RRB-1042S withholding to the dotted portion of line 33, Form 1040 when any of the following conditions apply: The taxpayer is reporting worldwide income (income from all sources and includes foreign and U.S. income) along with Form SSA-1042S/Form RRB-1042S. These benefits are not subject to the 30% tax rate and should be processed without citizenship or residency documentation. Nonresident aliens who file jointly with a U.S. citizen and elect to be treated as resident aliens for tax purposes are not subject to the 30% tax rate. The taxpayers address is in a U.S. Territory. Residents of U.S. Territories are not subject to the 30% tax rate. A resident alien (without worldwide income, income from all sources and includes foreign and U.S. income) can receive a refund for incorrectly withheld taxes on Social Security Benefits reported on Form SSA-1042S/Form RRB-1042S from SSA or IRS. If SSA cannot refund the taxes withheld, the IRS will process a tax return and refund the withholding when ALL the criteria below is met: The taxpayer files either Form 1040 or Form 1040-A (TY17 and prior) A copy of the "green card" is attached A signed declaration is attached that includes the following statement (or a signed statement with similar wording): "The SSA should not have withheld federal income tax from my social security benefits because I am a U.S. lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. I am filing a U.S. income tax return for the taxable year as a resident alien reporting all of my worldwide income. I have not yet claimed benefits for the taxable year under an income tax treaty as a nonresident alien." If the taxpayer is filing to claim a refund and does not attach a green card and/or declaration statement (see criteria above), "X" the withholding and correspond for the following if missing: • Green card • A signed declaration statement If the taxpayer is claiming a refund, both green card and declaration statement are attached, and none of the conditions in IRM 3.21.3.15.1.29 (13) are met, "X" the withholding.

# Line 26 - Estimated Tax Payments

3.21.3.15.1.30 (01-01-2021) Line 26 - Estimated Tax Payments For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Line 27a - Earned Income Credit (EIC)

3.21.3.15.1.31 (01-01-2024) Line 27a - Earned Income Credit (EIC) Taxpayers residing outside of the U.S. are generally not entitled to EIC. If the taxpayer is not claiming EIC, edit RPC "B" . If a taxpayer is claiming EIC and attaches a valid Form 2555 or Form 2555-EZ (TY18 and prior), and excludes foreign earned income, "X" both the Form 1040, line 27a amount and Schedule EIC, if attached. If the taxpayer is claiming EIC and claims income is exempt under IRC 933, disallow EIC. "X" both Form 1040, line 27a and Schedule EIC, if attached. If the taxpayer is claiming EIC and resided outside of the U.S. for the entire year, disallow EIC. "X" both Form 1040, line 27a and Schedule EIC, if attached. Note: Do not use the caption address to determine if the taxpayer resided outside the U.S. for the entire year. If the return has a U.S. address and all earned income (e.g., wages, self-employment) is from a U.S. territory, then "X" both Form 1040, line 27a and Schedule EIC, if attached. If none of the conditions in paragraphs (3) through (6) are present, the taxpayer may qualify for EIC if they resided inside the U.S. for more than half of the tax year and they also met all requirements for EIC given in IRM 3.11.3, Individual Income Tax Returns. Indications that the taxpayer resided inside the U.S. for more than half of the tax year are either: The taxpayer's address on Form(s) W-2 is one of the 50 states or District of Columbia or The taxpayer paid state or local taxes to one of the 50 states or District of Columbia Note: The taxpayer's address in the caption and the employer's address on Form(s) W-2 are not indications. If the taxpayer qualifies, allow EIC. If the taxpayer does not qualify, "X" line 27a and Schedule EIC, if attached. Exception: Do not "X" line 27a and Schedule EIC if the only reason for deleting is that a source of earned income is missing, when research for the source has not yet been done. U.S. military personnel stationed outside of the U.S. on extended active duty are considered to live in the U.S. during that duty period for purposes of the EIC. They must also meet all requirements for EIC given in IRM 3.11.3, Individual Income Tax Returns. If the taxpayer met all requirements, allow EIC. To determine whether the taxpayer is military personnel, search the signature area, Forms W-2(s) and/or attachments for any of the following indications: The occupation in signature area indicates U.S. Air Force, U.S. Army, U.S. Coast Guard, U.S. Marines, U.S. Navy, etc. DCPS CIVPAY DIRECTORATE DFAS - PE/P DFAS - ATTN: DFAS - PMTC/IN Defense Finance and Accounting Service Cleveland Center USAF - Active Duty DFAS - PMJFC/DE Commanding Office USCG Human Resources Service Information Center Correspond when EIC is being claimed and the source of income is not indicated or attached (W-2) and cannot be determined through research: If using Form 13900, use paragraph a. If using Form 9143, use paragraph 10. For additional instructions, see IRM 3.11.3.14.2.33, Earned Income Credit (EIC).

# Line 28 - Additional Child Tax Credit (Schedule 8812)

3.21.3.15.1.32 (03-20-2025) Line 28 - Additional Child Tax Credit (Schedule 8812) If the taxpayer appears to be a bona fide resident of Puerto Rico ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, has only Puerto Rico source income (e.g., Form(s) 499R-2/W-2PR), and appears to be filing only to claim the additional child tax credit, correspond following the instructions at IRM 3.21.3.80.1.1 (2). Exception: If you can determine the taxpayer is U.S. military personnel, see instructions in (4) below. Note: Do not convert Form 1040 or Form 1040-A (TY17 and prior) to Form 1040-PR/SS. If the taxpayer appears to be a bona fide resident of Puerto Rico ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, but is filing a Form 1040 to report non-Puerto Rico source income along with claiming the additional child tax credit, continue processing the Form 1040. If the taxpayer is a resident of CNMI, Guam, American Samoa, or Virgin Islands, "X" line 28 unless IRM 3.21.3.15.1.32 (4) applies. If the taxpayer is a resident in any of the U.S. territories and you can determine the taxpayer is U.S. Military personnel, the taxpayer is considered a resident of the U.S. for the entire year and the return should be processed using the domestic instructions in IRM 3.11.3, Individual Income Tax Returns. Search the occupation area, Forms W-2, and/or attachments for any indications such as the following: The occupation in the signature area indicates military, U.S. Air Force, U.S. Army, U.S. Coast Guard, U.S. Marines, or U.S. Navy. DCPS CIVPAY DIRECTORATE DFAS-PE/P DFAS-ATTN:DFAS-PMTC/IN Defense Finance and Accounting Service Cleveland Center USAF- Active Duty DFAS-PMJFC/DE Commanding Office USCG Human Resources Service Information Center If an amount is present on line 28 and there are 3 or more qualifying children with the CTC checkbox marked on line 7 of the dependent area of the return, Schedule 8812 must be attached. If missing, correspond for Schedule 8812. Note: For TY18 and later, ITINs are not valid on Schedule 8812. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Line 29 - Refundable American Opportunity Credit or Education Credit (Form 8863)

3.21.3.15.1.33 (10-30-2024) Line 29 - Refundable American Opportunity Credit or Education Credit (Form 8863) If an amount is claimed on line 29, Form 8863 must be attached. If missing, correspond for Form 8863. Note: If the taxpayer has an entry on both Schedule 3, line 3 and Form 1040, line 29, correspond for only one missing Form 8863. Use the first entry amount and line number on the return/Schedule.

# Line 30 - Refundable Adoption Credit (Form 8839)

3.21.3.15.1.34 (10-29-2025) Line 30 - Refundable Adoption Credit (Form 8839) If an amount is claimed on line 30, Form 8839 must be attached. If missing, correspond for Form 8839.

# Line 31 - Amount from Schedule 3, Line 15

3.21.3.15.1.35 (10-30-2024) Line 31 - Amount from Schedule 3, Line 15 If there is an amount on line 31, Schedule 3 must be attached. If missing and cannot be dummied from attachments, correspond for Schedule 3. See IRM 3.11.3, Individual Income Tax Returns for instructions on dummying or corresponding.

# Line 32 - Total Other Payments and Refundable Credits

3.21.3.15.1.36 (10-30-2024) Line 32 - Total Other Payments and Refundable Credits Compute and edit line 32 when blank, dash or zero and there are entries leading to a total. Note: Do not include "888" when it has been edited on line 27a.

# Line 33 - Total Payments

3.21.3.15.1.37 (10-30-2024) Line 33 - Total Payments Take one of the following actions when there is an amount on line 33, and lines 25d, 26 and 32 are blank, and no withholding documents are present: If there is an amount on line 33 of And Then ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ there is a significant entry on Form 1040, line 1a, 4b, or 5b or Schedule 1, line 7 Correspond for an explanation of Form 1040, line 33. ≡ ≡ ≡ ≡ ≡ ≡ ≡ there is no significant entry on Form 1040, line 1a, 4b, or 5b or Schedule 1, line 7 Edit the amount to Form 1040, line 26. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ there is a significant entry on Form 1040, line 1a, 4b, or 5b or Schedule 1, line 7 Edit the amount to Form 1040, line 25d, and edit RPC "G" . ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ there is no significant entry on Form 1040, line 1a, 4b, or 5b or Schedule 1, line 7 Edit the amount to Form 1040, line 26. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Refund or Amount Owed - Lines 34 through 38

3.21.3.15.2 (10-30-2024) Refund or Amount Owed - Lines 34 through 38 Edit amounts on lines 35a, 36 and 37 in dollars and cents. Line 34 is not a T-line. Lines 35a and 37 are T-Compute lines.

# Line 35a - Refund

3.21.3.15.2.1 (01-01-2021) Line 35a - Refund For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Lines 35b, 35c, and 35d - Direct Deposit Information

3.21.3.15.2.2 (01-01-2021) Lines 35b, 35c, and 35d - Direct Deposit Information For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Line 36 - Estimated Tax Credit Elect

3.21.3.15.2.3 (01-01-2021) Line 36 - Estimated Tax Credit Elect For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Line 37 - Amount You Owe (Balance Due)

3.21.3.15.2.4 (01-01-2021) Line 37 - Amount You Owe (Balance Due) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Line 38 - Estimated Tax Penalty (Form 2210 or Form 2210-F)

3.21.3.15.2.5 (01-01-2021) Line 38 - Estimated Tax Penalty (Form 2210 or Form 2210-F) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Third Party Designee

3.21.3.15.3 (04-24-2020) Third Party Designee Reserved

# Signature

3.21.3.15.4 (01-01-2015) Signature For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Occupation

3.21.3.15.5 (01-01-2020) Occupation Reserved

# Identity Protection Personal Identification Number (IP PIN)

3.21.3.15.6 (10-30-2024) Identity Protection Personal Identification Number (IP PIN) Identity Protection Personal Identification Number (IP PIN) is located in the "Sign Here" area of the return. If it is more or less than 6 numeric digits, circle the IP PIN.

# Paid Preparer Data

3.21.3.15.7 (01-01-2015) Paid Preparer Data For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Preparer Code

3.21.3.15.7.1 (01-01-2015) Preparer Code For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Preparer TIN (PTIN)

3.21.3.15.7.2 (01-01-2015) Preparer TIN (PTIN) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Preparer Phone Number

3.21.3.15.7.3 (01-01-2015) Preparer Phone Number For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 1 (Sequence 01) - Additional Income and Adjustments to Income

3.21.3.16 (10-30-2024) Schedule 1 (Sequence 01) - Additional Income and Adjustments to Income The following information pertains to Schedule 1 only. For TY20 and later, Schedule 1 may be filed with Form 1040 or Form 1040-NR. See IRM 3.21.3.84.19. The following are the T-lines and T-Compute lines on Schedule 1: T-Lines T-Compute Lines 1099-K Amount (below names found on form) Line 9 Line 1 Line 25 Line 2a Lines 3 through 7 Line 8r Line 9 Lines 11 through 18 Lines 19a and 19b Lines 20 and 21 Line 23 Line 25 Form 982 Indicator (dotted area left of Line 11) Lines 1 through 10 are for additional income and lines 11 through 26 are for adjustments to income. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 1 Below Name(s) - Form 1099-K Amount

3.21.3.16.1 (10-30-2024) Schedule 1 Below Name(s) - Form 1099-K Amount Reserved

# Schedule 1, Line 1 - Taxable Refunds

3.21.3.16.2 (01-01-2020) Schedule 1, Line 1 - Taxable Refunds Reserved

# Schedule 1, Lines 2a and 2b - Alimony Received and Date of Original Divorce

3.21.3.16.3 (01-01-2021) Schedule 1, Lines 2a and 2b - Alimony Received and Date of Original Divorce For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 1, Line 3 - Business Income or Loss

3.21.3.16.4 (10-29-2025) Schedule 1, Line 3 - Business Income or Loss If a taxpayer residing in American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, or U.S. Virgin Islands files Form 1040, reporting self-employment tax on Schedule 2, line 4, and the only income on the return is from Schedule C, Schedule E (Part II), and/or Schedule F, prepare a dummy Form 1040-SS as follows: Edit the caption and transcription lines. "X" Form 1040, and attach all information behind the dummy Form 1040-SS. Caution: If the taxpayer is claiming wages and/or withholding, do not convert. If Schedule 1, line 3 contains self-employment income of $434 or more and Schedule SE is not attached and Schedule 2, line 4 does not have a significant entry: Edit RPC "S" if the taxpayer resides in one of the following countries: RPC "S" Countries: Australia Austria Belgium Brazil Canada Chile (see Note below) Czech Republic Denmark Finland France Germany Greece Hungary (see Note below) Iceland Ireland Italy Japan Luxembourg Netherlands Norway Poland Portugal Slovak Republic (Slovakia) Slovenia South Korea Spain Sweden Switzerland United Kingdom Reminder: Includes Great Britain, England, Northern Ireland, Scotland, and Wales Uruguay Note: The U.S. - Chile income tax treaty generally entered into effect for taxable periods beginning on or after January 1, 2024. Edit RPC "S" only for tax years beginning after 2023. Note: The U.S. - Hungary tax treaty was terminated in 2023 and ceased to have effect with respect to self-employment income after January 1, 2024. Do not edit RPC "S" with respect for tax years beginning after 2023. Reminder: The taxpayer must be from one of the exempt countries above and does not report SE tax on the return. Note: If Schedule SE has a notation of Exempt, "X" Schedule SE and edit RPC "S" . For additional instructions, see IRM 3.11.3, Individual Income Tax Returns. Exception: Do not correspond for SE tax liability when the taxpayer resides in one of the countries listed in IRM 3.21.3.16.4 (2) above.

# Schedule 1, Line 4 - Other Gains or Losses

3.21.3.16.5 (01-01-2020) Schedule 1, Line 4 - Other Gains or Losses For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 1, Line 5 - Rental Real Estate, Royalties, Partnerships, S Corporations, and Trusts

3.21.3.16.6 (01-01-2024) Schedule 1, Line 5 - Rental Real Estate, Royalties, Partnerships, S Corporations, and Trusts If a taxpayer residing in American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, or U.S. Virgin Islands files Form 1040, reporting self-employment tax on Schedule 2, line 4, and the only income on the return is from Schedule C, Schedule E (Part II), and/or Schedule F, prepare a dummy Form 1040-SS as follows: Edit the caption and transcription lines. "X" Form 1040, and attach all information behind the dummy Form 1040-SS. Caution: If the taxpayer is claiming wages and/or withholding, do not convert. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 1, Line 6 - Farm Income or Loss

3.21.3.16.7 (10-29-2025) Schedule 1, Line 6 - Farm Income or Loss If a taxpayer residing in American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, or U.S. Virgin Islands files Form 1040, reporting self-employment tax on Schedule 2, line 4, and the only income on the return is from Schedule C, Schedule E (Part II), and/or Schedule F, prepare a dummy Form 1040-SS as follows: Edit the caption and transcription lines. "X" Form 1040, and attach all information behind the dummy Form 1040-SS. Caution: If the taxpayer is claiming wages and/or withholding, do not convert. If Schedule 1, line 6 contains Self-Employment income of $434 or more and Schedule SE is not attached and Schedule 2, line 4 does not have a significant entry: Edit RPC "S" if the taxpayer resides in one of the following countries: RPC "S" Countries: Australia Austria Belgium Brazil Canada Chile (see Note below) Czech Republic Denmark Finland France Germany Greece Hungary (see Note below) Iceland Ireland Italy Japan Luxembourg Netherlands Norway Poland Portugal Slovak Republic (Slovakia) Slovenia South Korea Spain Sweden Switzerland United Kingdom Reminder: Includes Great Britain, England, Northern Ireland, Scotland, and Wales Uruguay Note: The U.S. - Chile income tax treaty generally entered into effect for taxable periods beginning on or after January 1, 2024. Edit RPC "S" only for tax years beginning after 2023. Note: The U.S. - Hungary tax treaty was terminated in 2023 and ceased to have effect with respect to self-employment income after January 1, 2024. Do not edit RPC "S" with respect for tax years beginning after 2023. Reminder: The taxpayer must be from one of the exempt countries above and does not report SE tax on the return. Note: If Schedule SE has a notation of Exempt, X Schedule SE and edit RPC S. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns. Exception: Do not correspond for SE tax liability when the taxpayer resides in one of the countries listed in IRM 3.21.3.16.7 (2) above.

# Schedule 1, Line 7 - Unemployment Compensation (UEC)

3.21.3.16.8 (01-01-2020) Schedule 1, Line 7 - Unemployment Compensation (UEC) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 1, Lines 8a through 8z - Other Income

3.21.3.16.9 (10-29-2025) Schedule 1, Lines 8a through 8z - Other Income For international entries on Lines 8a through 8z, follow the table below: If And Then Line 8z indicates Article XXV (Non-Discrimination) of the U.S.- Canada Income Tax Treaty Form 1040-NR is not attached Correspond for Form 1040-NR. See IRM 3.21.3.83.5. Note: Use Form 9143 and the following literal when corresponding for Article XXV, "If you are claiming Article XXV of the U.S.-Canada Income Tax Treaty, you must file Form 1040-NR. Please complete, sign, and return Form 1040-NR along with all necessary forms, schedules, and federal tax withholding statements." Entry on line 8d, or line 8z indicates Form 2555 or Form 2555-EZ (TY18 and prior) Exclusion Form 2555 or Form 2555-EZ (TY18 and prior) is missing Correspond using the applicable form and boxes. Entry on line 8d, or line 8z indicates Form 2555 or Form 2555-EZ (TY18 and prior) Exclusion Taxpayer resides in: Baker Island Howland Island Jarvis Island Johnston Atoll Kingman Reef Midway Atoll Palmyra Atoll Wake Island Take the following actions: "X" Schedule 1, line 9, "X" Form 2555 or Form 2555-EZ, Ensure income is reported on Form 1040, lines 1a through 7a or Schedule 1, lines 1 through 7 or 9, and If the deleted Form 2555 or Form 2555-EZ is the only foreign aspect of the return, rebatch the coded return as domestic. Exception: If a return shows income earned in the Federated States of Micronesia, Marshall Islands, or Palau Islands and Form 2555 or Form 2555-EZ is attached and valid, ALLOW the exclusion. Entry on line 8d, or line 8z indicates Form 2555 or Form 2555-EZ (TY18 and prior) Exclusion Two Form 2555 and/or Form 2555-EZ (TY18 and prior) are submitted, and only one Form 2555 and/or Form 2555-EZ is valid Adjust Schedule 1, line 9 by deleting the amount for the invalid Form 2555 or Form 2555-EZ, "X" the invalid Form 2555 or Form 2555-EZ, and Ensure income is reported on Form 1040, lines 1a through 7a or Schedule 1, lines 1 through 7 or 9. Line 8z indicates Form 2555 or Form 2555-EZ(TY18 and prior) Exclusion It is a positive amount Take one of the following actions: If amount is verified to be a valid exclusion, ensure the exclusion is included as a negative in the total on Schedule 1, line 9, and ensure income is reported on Form 1040, lines 1a through 7a or Schedule 1, lines 1 through 7 or 9. If amount is not a valid exclusion, "X" Schedule 1, line 9, "X" Form 2555 or Form 2555-EZ, and ensure income is reported on Form 1040, lines 1a through 7a or Schedule 1, lines 1 through 7 or 9. Line 8z indicates IRC 871 (Capital Gains) Taxpayer excludes this on Schedule 1, line 8z and/or 9 If the income is not included on Form 1040, line 7a or Schedule 1, line 4, edit the income to Form 1040, line 7a. Line 8z indicates IRC 893 or employee of international organization or foreign government Taxpayer provides all of the following: Evidence of non-U.S. citizen status (e.g., copy of an A or G visa, or green card), Written evidence from the U.S. Citizenship and Immigration Services (USCIS) confirming USCIS Form I-508 has not been signed and filed, If an employee of a foreign government, a copy of the U.S. State Department Internal Revenue Code (IRC) Section 893(b) certification or other evidence of meeting the requirements of IRC Section 893(a)(2) and (3), and If an employee of an international organization, either the number of the Presidential Executive Order or an international organization that is listed in Exhibit 3.21.3-4. Note: IRC 893 does not apply to the North Atlantic Treaty Organization (NATO) or the Ottawa Agreement. Allow the exempt amount on Schedule 1, line 9. If the income is not reported on Form 1040, line 1a or Schedule 1, line 3, 5, or 6, edit the income to Form 1040, line 1a. Line 8z indicates IRC 893 or employee of international organization or foreign government Taxpayer does not provide all items listed in the box above Correspond. When using Form 13900, mark box K. Line 8z indicates IRC 911 See rows 2-5 of this table relating to claim of Form 2555 Exclusion. Line 8z indicates IRC 931 See IRM 3.21.3.76.1.2. Line 8z indicates IRC 933 See IRM 3.21.3.80.2. Line 8z shows a negative amount Taxpayer notates foreign income Correspond for an explanation. Line 8z shows one or more of the following: Self-Employment income Form 1099-NEC (TY20 and later), box 1 amount Form 1099-MISC (TY19 and prior), box 7 amount Form 2555 or Form 2555-EZ is attached to exclude the income If the income is not reported on Form 1040, line 1a or Schedule 1, line 3, 5, or 6, edit the Self-Employment income, Form 1099-NEC (TY20 and later), box 1 amount and/or Form 1099-MISC (TY19 and prior), box 7 amount to Form 1040, line 1a. Line 8z shows one or more of the following: Self-Employment income Form 1099-NEC (TY20 and later), box 1 amount Form 1099-MISC (TY19 and prior), box 7 amount Self-Employment income is $434 or more, Schedule SE is not attached, and Schedule 2, line 4 does not have a significant entry Take one of the following actions: If the taxpayer resides in one of the following countries, edit RPC "S" : Australia Austria Belgium Brazil Canada Chile (see Note below) Czech Republic Denmark Finland France Germany Greece Hungary (see Note below) Iceland Ireland Italy Japan Luxembourg Netherlands Norway Poland Portugal Slovak Republic (Slovakia) Slovenia South Korea Spain Sweden Switzerland United Kingdom Reminder: Includes Great Britain, England, Northern Ireland, Scotland, and Wales Uruguay Note: The U.S. - Chile income tax treaty generally entered into effect for taxable periods beginning on or after January 1, 2024. Edit RPC "S" only for tax years beginning after 2023. Note: The U.S. - Hungary tax treaty was terminated in 2023 and ceased to have affect with respect to self-employment income after January 1, 2024. Do not edit RPC "S" with respect for tax years beginning after 2023. If the taxpayer does not reside in one of the countries listed above, edit RPC "N" . Line 8z indicates a treaty Taxpayer provides: The name of the foreign country of which the taxpayer is a citizen or resident and whose tax treaty with the U.S. provides the exempt status, The treaty article number that allows the exemption, and The amount of "exempt" income during the tax year Verify the treaty article and maximum exemption amounts using Exhibit 3.21.3-10: If valid, ensure the allowed amount of exempt income is included as a negative in the Schedule 1, line 9 total. If the taxpayer has not already reported the income, edit the income to Form 1040, line 1a. Exception: Taiwan and Hong Kong are not considered to be China and are not allowed to exclude income based on China treaties. If invalid, "X" Schedule 1, line 9. If the taxpayer has not already reported the income, edit to Form 1040, line 1a. Line 8z indicates a treaty Taxpayer does not provide ALL items listed above. Correspond. Line 8r, "Scholarship and fellowship grants not reported on Form W-2," is a T-line. If there is an entry on this line, see IRM 3.21.3.16.10 for instructions. A Fulbright Grant received by a U.S. citizen or U.S. resident alien taxpayer for the purpose of lecturing or teaching in a foreign country is considered a payment for services and is subject to U.S. tax. Note: If the Fulbright Grant was paid by an agency of the U.S. government, the income may be excluded under the IRC 911, provided the taxpayer is not a U.S. government employee. If the Housing Deduction amount from Form 2555, line 50 is entered on Schedule 1, line 8z or 9, "X" Schedule 1, line 9, and add the Housing Deduction amount to Schedule 1, line 25. If both the Housing Deduction and the Foreign Earned Income Exclusion are claimed together on Schedule 1, line 8d or 8z, adjust line 9 to remove the Housing Deduction, and add the Housing Deduction to line 25. See IRM 3.21.3.42.9 (7). Qualified airline employees may exclude some income reported as wages on Form W-2, box 1. This income will be included on Form 1040, line 1a and excluded as a negative on Schedule 1, line 8d or line 8z as "airline payment." Accept as filed. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 1, Line 8r - Scholarship and Fellowship Grants Not Reported on Form W-2

3.21.3.16.10 (10-30-2024) Schedule 1, Line 8r - Scholarship and Fellowship Grants Not Reported on Form W-2 Generally, a taxpayer's entry on Schedule 1, line 8r should include only the amount of scholarship and fellowship grants not reported on Form W-2, reduced by any amount used to pay for tuition and required, course-related expenses. Scholarship and fellowship income shown on Form W-2 should be reported on Form 1040, line 1a. If it is determined this Form W-2 income is included in the line 8r entry: Edit the Form W-2 gross income to Form 1040, line 1a, if not already included, Do not adjust or compute Form 1040, line 9 or 11a, and "X" or adjust the line 8r amount to exclude the income moved to Form 1040, line 1a. If a taxpayer is claiming that a scholarship or fellowship grant reported on a Form 1098-T or a Form 1042-S with Income Code 16 (Income Code 15 for TY14 and prior) is exempt under a tax treaty, verify the treaty claim: If the claim is valid, take the following actions: • Edit the gross scholarship and fellowship grant to line 8r, if not already reported there, • Verify, or adjust as necessary, that the allowed amount of treaty-exempt grant is included as a negative amount in the Schedule 1, line 9 total, and Note: The taxpayer is instructed to report the treaty-exempt grant as a negative amount on line 8z along with the required treaty information. If this was correctly done, the proper exemption may already be included in line 9. • "X" the treaty exemption if found elsewhere on the return. If the claim is invalid, take the following actions: • Edit or adjust the line 8r amount as necessary, following the table instructions in IRM 3.21.3.16.10 (5), • Edit or adjust the Schedule 1, line 9 total to account for any adjustments to line 8r and any disallowance of a treaty exemption claim made in lines 8a through 8z, and • "X" the treaty exemption if found elsewhere on the return. One or more of the following documents must be attached to support an entry on line 8r. If missing, correspond: Form 1098-T A statement from a college or an educational institution (on their letterhead) that states the amount of the grant, the grantor's name, the dates it covers, and the expenses the grant covers Form 1042-S with Income Code 16 (Income Code 15 for TY14 and prior) issued by a college or an educational institution Note: This may be attached when a nonresident alien becomes a resident alien for tax purposes but still receives a Form 1042-S. After following the above paragraphs, if at least one of the items in IRM 3.21.3.16.10 (4) above is present and EITHER there is still an amount on line 8r that the taxpayer is not validly exempting under a treaty on lines 8a through 8z OR there is a Form 1098-T or a Form 1042-S with Income Code 16 (Income Code 15 for TY14 and prior) issued by a college or an educational institution attached to the return, where the income is not reported anywhere, follow the instructions in the table below: If And Then You calculate (1) minus (2) below by: Adding: All Form 1042-S (Income Code 16) gross income, box 2 amounts All Form 1098-T scholarships or grants, box 5 amounts, and All grant income from educational institution statements Subtracting: All Form 1098-T payments received for qualified tuition and related expenses, box 1 amounts and All tuition and required, course-related expenses (fees, books, supplies, equipment) from educational institution statements and from receipts, invoices and the like. Note: While you can use statements from educational institutions that provide only institution-determined total expenses without a breakdown, do not use taxpayer-prepared or taxpayer-provided statements showing only total expenses or other statements showing only taxpayer-determined total expenses, with no breakdown or itemization. The amount calculated by adding all the items in (1) and then subtracting all the items in (2) is greater than the line 8r entry, including when line 8r is blank or zero Edit or adjust line 8r to equal the calculated amount.

# Schedule 1, Line 9 - Total Other Income

3.21.3.16.11 (10-30-2024) Schedule 1, Line 9 - Total Other Income If line 9 is blank, dash, or zero and there are any entries on lines 8a through 8z, compute and edit line 9 by adding lines 8a through 8z.

# Schedule 1, Line 11 Dotted Portion - Form 982 Indicator

3.21.3.16.12 (10-30-2024) Schedule 1, Line 11 Dotted Portion - Form 982 Indicator When Form 982 is attached edit the Form 982 Indicator "1" on the dotted portion of line 11.

# Schedule 1, Line 11 - Educator Expenses

3.21.3.16.13 (01-01-2021) Schedule 1, Line 11 - Educator Expenses Reserved

# Schedule 1, Line 12 - Certain Business Expenses of Reservists, Performing Artists, and Fee-Basis Government Officials (Form 2106)

3.21.3.16.14 (01-01-2020) Schedule 1, Line 12 - Certain Business Expenses of Reservists, Performing Artists, and Fee-Basis Government Officials (Form 2106) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 1, Line 13 - Health Savings Account Deduction (Form 8889)

3.21.3.16.15 (10-30-2024) Schedule 1, Line 13 - Health Savings Account Deduction (Form 8889) If an amount is present on Schedule 1 line 13, Form 8889 must be attached. If missing, correspond for Form 8889.

# Schedule 1, Line 14 - Moving Expenses for Members of the Armed Forces (Form 3903)

3.21.3.16.16 (10-29-2025) Schedule 1, Line 14 - Moving Expenses for Members of the Armed Forces (Form 3903) If an amount is present on Schedule 1, line 14 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 3903 (or similar statement) must be attached. If missing, correspond for Form 3903. Note: If the taxpayer is only claiming an expense for storage fees while out of the United States, Form 3903 is not required. Note: Do not correspond if the checkbox on line 14 is checked.

# Schedule 1, Line 15 - Deductible Part of Self-Employment Tax

3.21.3.16.17 (01-01-2020) Schedule 1, Line 15 - Deductible Part of Self-Employment Tax Reserved

# Schedule 1, Line 16 - Self-Employed SEP, SIMPLE, and Qualified Plans

3.21.3.16.18 (10-30-2024) Schedule 1, Line 16 - Self-Employed SEP, SIMPLE, and Qualified Plans "X" the amount on Schedule 1 line 16 if none of the following are attached to the return: Schedule C Schedule E (Part II present) Schedule F

# Schedule 1, Line 17 - Self-Employed Health Insurance Deduction

3.21.3.16.19 (10-30-2024) Schedule 1, Line 17 - Self-Employed Health Insurance Deduction Edit a misplaced amount from Schedule 1 line 17 to line 15 when both of the following conditions are present: Schedule SE is attached to the return Line 15 is blank

# Schedule 1, Lines 19a, 19b, and 19c - Alimony Paid, Recipient's TIN, and Date of Original Divorce

3.21.3.16.20 (01-01-2021) Schedule 1, Lines 19a, 19b, and 19c - Alimony Paid, Recipient's TIN, and Date of Original Divorce For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 1, Line 20 - IRA Deduction

3.21.3.16.21 (01-01-2020) Schedule 1, Line 20 - IRA Deduction For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 1, Line 21 - Student Loan Interest Deduction

3.21.3.16.22 (01-01-2020) Schedule 1, Line 21 - Student Loan Interest Deduction Reserved

# Schedule 1, Line 22

3.21.3.16.23 (01-01-2021) Schedule 1, Line 22 Reserved

# Schedule 1, Line 23 - Archer MSA Deduction

3.21.3.16.24 (10-30-2024) Schedule 1, Line 23 - Archer MSA Deduction When found elsewhere on the return, delete any amount identified as "MSA" or "Archer MSA Deduction" . Edit the amount in dollars only to Schedule 1 line 23.

# Schedule 1, Lines 24a through 24z - Other Adjustments (Not Transcribed)

3.21.3.16.25 (10-30-2024) Schedule 1, Lines 24a through 24z - Other Adjustments (Not Transcribed) Delete the following adjustments from Schedule 1, lines 11 through 23, and ensure the amounts are included in the Schedule 1, line 25 total: "403(b)" - Contributions by certain chaplains to section 403(b) plans "501(c)(18)(D)" - Contributions to certain pension plans "ED67(e)" - (TY18 and later) Excess Deductions of section 67(e) expenses from Form 1041 Schedule K-1 "Housing Deduction" - Form 2555, line 50 "Jury Pay" - Jury Duty Pay "PPR" - Personal Property Rental deductible expenses "RFST" - Reforestation amortization and expenses "Sub-Pay TRA" - Repayment of Supplemental Unemployment Benefit (SUB) payments received in a prior year under the Trade Act of 1974 (TRA) Exception: "X" the SUB pay amount where found and subtract the amount from Form 1040, line 1a when there is no indication that the adjustment is for benefits received in a prior year. "UDC" - Legal fees for Unlawful Discrimination Claims "USOC" - United States Olympic Committee-deduction for Olympic and Paralympic medals and prize money "WBF" - Whistle Blower Fees "DPAD" - Domestic Production Activity Deduction Delete the adjustments in (1) above when found elsewhere on the return, and edit the amounts to be included in the Schedule 1, line 25 total. If there is an amount on Schedule 1, line 24j, or if Schedule 1, line 24z has an amount identified as "Form 2555" , "IRC 911" , "Housing Deduction" , "IRC 931" , or something similar: If And Then Taxpayer resides in: Baker Island Howland Island Jarvis Island Johnston Atoll Kingman Reef Midway Atoll Palmyra Atoll Wake Island Take the following actions: "X" Schedule 1, line 25, "X" Form 2555 or Form 2555-EZ (TY18 and prior), Ensure income is reported on Form 1040, lines 1a through 7a or Schedule 1, lines 1 through 9, and If the deleted Form 2555 or Form 2555-EZ is the only foreign aspect of the return, rebatch the coded return as domestic. The taxpayer does NOT reside in one of the areas mentioned above Form 2555 is missing Correspond for Form 2555. Edit the Housing Deduction amount from Form 2555, line 50 to the total of Schedule 1, line 25, if not already done by the taxpayer. If a taxpayer claims an adjustment to income on Schedule 1, line 24z for anything other than the items listed in (1) above, "X" Schedule 1, line 25. If there is an amount on Schedule 1, line 24z with no explanation present, "X" Schedule 1, line 25.

# Schedule 1, Line 25 - Total Other Adjustments

3.21.3.16.26 (10-30-2024) Schedule 1, Line 25 - Total Other Adjustments If line 25 is blank, dash, or zero and there are any entries on lines 24a through 24z, compute and edit line 25 by adding lines 24a through 24z.

# Schedule 1, Line 26 - Total Adjustments to Income

3.21.3.16.27 (01-01-2021) Schedule 1, Line 26 - Total Adjustments to Income For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 1-A (Sequence 1A) - Additional Deductions

3.21.3.17 (10-29-2025) Schedule 1-A (Sequence 1A) - Additional Deductions For TY25 and later, if only Schedule 1-A, page 2 is attached, with T-lines present or edited, edit Sequence Number "1A" in the upper-right margin of Schedule 1-A, page 2. Schedule 1-A, Sequence number 1A, when not deleted, must be located directly following Schedule 1, Sequence number 01 when attached to the return. The following are the T-Lines and T-Compute Lines on Schedule 1-A: T-Lines T-Compute Lines Line 6 Line 6 Line 13 Line 13 Line 14c Line 14c Line 21 Line 21 Line 23 Line 23 Line 30 Line 30 Line 37 Line 37 Only one Schedule 1-A can be processed. If more than one is attached, combine related T-line amounts onto one schedule and delete those schedules not used. For TY24 and prior, "X" the schedule.

# Schedule 2 (Sequence 02) - Additional Taxes

3.21.3.18 (10-29-2025) Schedule 2 (Sequence 02) - Additional Taxes The following information pertains to Schedule 2 only. For TY20 and later, Schedule 2 may be filed with Form 1040 or Form 1040-NR. See IRM 3.21.3.84.20. The following are the T-lines and T-Compute Lines on Schedule 2: T-Lines T-Compute Lines Line 1a - 1y Line 7 Line 1e Checkboxes Line 18 Line 1f Checkboxes Line 2 Line 4 Lines 7-9 Line 10 (TY24 and prior) Lines 11-16 Line 18 Line 19 Line 20 Lines 1a through 3 are for tax and lines 4 through 21 are for other taxes. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 2, Line 1a - Excess Advance Premium Tax Credit Repayment (Form 8962)

3.21.3.18.1 (10-30-2024) Schedule 2, Line 1a - Excess Advance Premium Tax Credit Repayment (Form 8962) If an amount is claimed on Schedule 2, line 1a, Form 8962 must be attached. Correspond, if missing. When corresponding for Form 8962 on Form 13900, also correspond for Form 1095-A, if not attached, using paragraph "s" . When corresponding for Form 8962 on Form 9143, also correspond for Form 1095-A, if not attached, using the following literal: "Send a copy of your Form 1095-A, Health Insurance Marketplace Statement, to support your entries on Form 8962, Premium Tax Credit. If you didn't receive one or your Form 1095-A is incorrect, visit www.healthcare.gov or your state Marketplace website."

# Schedule 2, Line 1b - Repayment of New Clean Vehicle Credits (Form 8936)

3.21.3.18.2 (10-30-2024) Schedule 2, Line 1b - Repayment of New Clean Vehicle Credits (Form 8936) If an amount is present on Schedule 2 line 1b, Form 8936 must be attached. If missing, correspond for Form 8936.

# Schedule 2, Line 1c - Repayment of Previously Owned Clean Vehicle Credits (Form 8936)

3.21.3.18.3 (10-30-2024) Schedule 2, Line 1c - Repayment of Previously Owned Clean Vehicle Credits (Form 8936) If an amount is present on Schedule 2 line 1c, Form 8936 must be attached. If missing, correspond for Form 8936.

# Schedule 2, Line 1d - Net EPE Recapture (Form 4255)

3.21.3.18.4 (10-30-2024) Schedule 2, Line 1d - Net EPE Recapture (Form 4255) If an amount is present on Schedule 2 line 1d, Form 4255 must be attached. If missing, correspond for Form 4255.

# Schedule 2, Line 1e - Excessive Payments Amount (Form 4255)

3.21.3.18.5 (10-30-2024) Schedule 2, Line 1e - Excessive Payments Amount (Form 4255) If an amount is present on Schedule 2 line 1e, Form 4255 must be attached. If missing, correspond for Form 4255.

# Schedule 2, Line 1f - Chapter 1 Tax Amount (Form 4255)

3.21.3.18.6 (10-30-2024) Schedule 2, Line 1f - Chapter 1 Tax Amount (Form 4255) If an amount is present on Schedule 2 line 1f, Form 4255 must be attached. If missing, correspond for Form 4255

# Schedule 2, Line 1f Checkboxes - Chapter 1 Tax Checkbox Code (Form 4255)

3.21.3.18.7 (10-30-2024) Schedule 2, Line 1f Checkboxes - Chapter 1 Tax Checkbox Code (Form 4255) Reserved

# Schedule 2, Line 1y - Other Additions to Tax

3.21.3.18.8 (10-30-2024) Schedule 2, Line 1y - Other Additions to Tax Reserved

# Schedule 2, Line 2 - Alternative Minimum Tax (Form 6251)

3.21.3.18.9 (10-30-2024) Schedule 2, Line 2 - Alternative Minimum Tax (Form 6251) If an amount is present on Schedule 2 line 2, Form 6251 must be attached. If missing, correspond for Form 6251. Reminder: Edit FPC "5" when Form 6251 is attached. Note: A blank Form 6251 should never be deleted.

# Schedule 2, Line 3 - Total

3.21.3.18.10 (01-01-2020) Schedule 2, Line 3 - Total Reserved

# Schedule 2, Line 4 - Self-Employment Tax (Schedule SE)

3.21.3.18.11 (01-01-2020) Schedule 2, Line 4 - Self-Employment Tax (Schedule SE) If a taxpayer residing in American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, or U.S. Virgin Islands files Form 1040, reporting self-employment taxes on Schedule 2, line 4, and the only income on the return is from Schedule C, Schedule E (Part II) and/or Schedule F, prepare a dummy Form 1040-SS as follows: Edit the caption and transcription lines. "X" Form 1040, and attach all information behind the dummy Form 1040-SS. Caution: If the taxpayer is claiming wages and/or withholding, do not convert. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 2, Line 7 - Total Additional Social Security and Medicare Tax (Form 4137 or Form 8919)

3.21.3.18.12 (01-01-2020) Schedule 2, Line 7 - Total Additional Social Security and Medicare Tax (Form 4137 or Form 8919) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 2, Line 8 - Additional Tax on IRAs or Other Qualified Retirement Plans and Other Tax-Favored Accounts (Form 5329)

3.21.3.18.13 (10-30-2024) Schedule 2, Line 8 - Additional Tax on IRAs or Other Qualified Retirement Plans and Other Tax-Favored Accounts (Form 5329) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 2, Line 9 - Household Employment Taxes (Schedule H)

3.21.3.18.14 (01-01-2020) Schedule 2, Line 9 - Household Employment Taxes (Schedule H) If an amount is present on line 9, Schedule H must be attached. Correspond for Schedule H, if missing.

# Schedule 2, Line 11 - Additional Medicare Tax (Form 8959)

3.21.3.18.15 (01-01-2023) Schedule 2, Line 11 - Additional Medicare Tax (Form 8959) If an amount is present on line 11, Form 8959 must be attached. Correspond for Form 8959, if missing.

# Schedule 2, Line 12 - Net Investment Income Tax (Form 8960)

3.21.3.18.16 (01-01-2023) Schedule 2, Line 12 - Net Investment Income Tax (Form 8960) If an amount is present on line 12, Form 8960 must be attached. Correspond for Form 8960, if missing.

# Schedule 2, Line 16 - Recapture of Low-Income Housing Credit (Form 8611)

3.21.3.18.17 (11-12-2021) Schedule 2, Line 16 - Recapture of Low-Income Housing Credit (Form 8611) If Form 8611 is missing and the line 16 amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond for Form 8611.

# Schedule 2, Lines 17a through 17z - Other Additional Taxes (Not Transcribed)

3.21.3.18.18 (11-12-2021) Schedule 2, Lines 17a through 17z - Other Additional Taxes (Not Transcribed) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 2, Line 18 - Total Additional Taxes

3.21.3.18.19 (10-30-2024) Schedule 2, Line 18 - Total Additional Taxes If line 18 is blank, dash, or zero and there are any entries on lines 17a through 17z, compute and edit line 18 by adding lines 17a through 17z.

# Schedule 2 Line 19 - Net EPE Recapture (Form 4255)

3.21.3.18.20 (10-30-2024) Schedule 2 Line 19 - Net EPE Recapture (Form 4255) If an amount is present on Schedule 2 line 19, Form 4255 must be attached. If missing, correspond for Form 4255.

# Schedule 2, Line 20 - Section 965 Net Tax Liability Installment (Form 965-A)

3.21.3.18.21 (10-30-2024) Schedule 2, Line 20 - Section 965 Net Tax Liability Installment (Form 965-A) If an amount is present on line 20, edit RPC "F" . If an amount is present on line 20, and Form 965-A must be attached. If missing, correspond for Form 965-Aonly if corresponding for other missing information. Note: If Form 965-A is attached and there is no entry on line 20, do not edit RPC "F" .

# Schedule 2, Line 21 - Total Other Taxes

3.21.3.18.22 (01-01-2020) Schedule 2, Line 21 - Total Other Taxes Reserved

# Schedule 3 (Sequence 03) - Additional Credits and Payments

3.21.3.19 (10-30-2024) Schedule 3 (Sequence 03) - Additional Credits and Payments The following information pertains to Schedule 3 only. For TY20 and later, Schedule 3 may be filed with Form 1040 or Form 1040-NR. See IRM 3.21.3.84.21. The following lines are T-lines and T-Compute lines on Schedule 3: T-Lines T-Compute Lines Lines 1 through 4 Line 7 Lines 5a - 5b Line 14 Lines 6a - 6d Line 6e (TY21 and TY22 only) Lines 6f and 6g Lines 6h through 6l (first line with an amount present) Line 6m Line 7 Lines 9 through 12 Line 13a Line 13b Line 13c Line 14 Lines 1 through 8 are for nonrefundable credits and lines 9 through 15 are for other payments and refundable credits. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 3, Line 1 - Foreign Tax Credit (Form 1116)

3.21.3.19.1 (01-01-2021) Schedule 3, Line 1 - Foreign Tax Credit (Form 1116) If an amount is claimed on Schedule 3, line 1 of more than $300 (more than $600 for FS 2), Form 1116 or similar statement must be attached. If missing, or if no significant amount is present or edited on line 7, 8, 24, or 35, correspond for Form 1116. Taxpayers earning income in the following countries are not allowed to take a foreign tax credit for foreign taxes paid to these countries. If the taxpayer takes the foreign tax credit (see Form 1116, Part II, line 8) with respect to taxes paid to any of the following countries (see Form 1116, Part I, line i, columns A, B, and C), "X" both Form 1116, line 8 and Schedule 3, line 1. Country Starting Date Ending Date Iran January 1, 1987 Still in Effect North Korea January 1, 1987 Still in Effect Sudan February 12, 1994 Still in Effect Syria January 1, 1987 Still in Effect

# Schedule 3, Line 2 - Credit for Child and Dependent Care Expenses (Form 2441, Line 11)

3.21.3.19.2 (01-01-2020) Schedule 3, Line 2 - Credit for Child and Dependent Care Expenses (Form 2441, Line 11) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 3, Line 3 - Education Credits (Form 8863, Line 19)

3.21.3.19.3 (01-01-2020) Schedule 3, Line 3 - Education Credits (Form 8863, Line 19) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 3, Line 4 - Retirement Savings Contributions Credit (Form 8880)

3.21.3.19.4 (01-01-2020) Schedule 3, Line 4 - Retirement Savings Contributions Credit (Form 8880) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 3, Line 5a - Residential Clean Energy Credit (Form 5695, Line 15)

3.21.3.19.5 (01-01-2024) Schedule 3, Line 5a - Residential Clean Energy Credit (Form 5695, Line 15) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 3, Line 5b - Energy Efficient Home Improvement Credit (Form 5695, Line 32)

3.21.3.19.6 (01-01-2024) Schedule 3, Line 5b - Energy Efficient Home Improvement Credit (Form 5695, Line 32) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 3, Lines 6a through 6z - Other Nonrefundable Credits

3.21.3.19.7 (11-12-2021) Schedule 3, Lines 6a through 6z - Other Nonrefundable Credits For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 3, Line 6f - Clean Vehicle Credit (Form 8936, Line 13)

3.21.3.19.7.1 (10-29-2025) Schedule 3, Line 6f - Clean Vehicle Credit (Form 8936, Line 13) If there is an amount on line 6f, Form 8936 and Form 8936 Schedule A must be attached. If missing, correspond for Form 8936 and/or Form 8936 Schedule A

# Schedule 3, Line 6g - Mortgage Interest Credit (Form 8396)

3.21.3.19.7.2 (10-29-2025) Schedule 3, Line 6g - Mortgage Interest Credit (Form 8396) If an amount is present on line 6g, Form 8396 must be attached. If missing, correspond for Form 8396.

# Schedule 3, Line 6m - Credit for Previously Owned Clean Vehicles (Form 8936, Line 18)

3.21.3.19.7.3 (10-29-2025) Schedule 3, Line 6m - Credit for Previously Owned Clean Vehicles (Form 8936, Line 18) If there is an amount on line 6m, Form 8936 and Form 8936 Schedule A must be attached. If missing, correspond for Form 8936 and Form 8936 Schedule A.

# Schedule 3, Line 7 - Total Other Nonrefundable Credits

3.21.3.19.8 (10-30-2024) Schedule 3, Line 7 - Total Other Nonrefundable Credits If line 7 is blank, dash, or zero, and there are any entries on lines 6a through 6m, compute and edit line 7 by adding lines 6a through 6m.

# Schedule 3, Line 9 - Net Premium Tax Credit (Form 8962)

3.21.3.19.9 (01-01-2021) Schedule 3, Line 9 - Net Premium Tax Credit (Form 8962) If an amount is claimed on line 9, Form 8962 must be attached. If missing, correspond. When corresponding for Form 8962 on Form 13900, also correspond for Form 1095-A if not attached, using paragraph "s" . When corresponding for Form 8962 on Form 9143, also correspond for Form 1095-A, if not attached, using the following literal: "Send a copy of your Form 1095-A, Health Insurance Marketplace Statement, to support your entries on Form 8962, Premium Tax Credit. If you didn't receive one or your Form 1095-A is incorrect, visit www.healthcare.gov or your state Marketplace website."

# Schedule 3, Line 10 - Amount Paid with Request for Extension to File (Form 4868)

3.21.3.19.10 (01-01-2021) Schedule 3, Line 10 - Amount Paid with Request for Extension to File (Form 4868) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 3, Line 11 - Excess Social Security and Tier 1 RRTA Tax Withheld

3.21.3.19.11 (01-01-2021) Schedule 3, Line 11 - Excess Social Security and Tier 1 RRTA Tax Withheld Taxpayers in U.S. Territories may claim excess Social Security and RRTA taxes withheld. However, the withholding must be verified via attached Form(s) W-2AS, Form(s) W-2CM, Form(s) W-2GU, Form(s) W-2VI, Form(s) 499R-2/W-2PR, and Form(s) W-2. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 3, Line 12 - Credit for Federal Tax on Fuels (Form 4136)

3.21.3.19.12 (01-01-2021) Schedule 3, Line 12 - Credit for Federal Tax on Fuels (Form 4136) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 3, Line 13a - Form 2439

3.21.3.19.13 (01-01-2024) Schedule 3, Line 13a - Form 2439 For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 3, Line 13c - Net Elective Payment Election (EPE) (Not Transcribed)

3.21.3.19.14 (01-01-2024) Schedule 3, Line 13c - Net Elective Payment Election (EPE) (Not Transcribed) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 3, Line 13z - Other Payments or Refundable Credits (Not Transcribed)

3.21.3.19.15 (10-29-2025) Schedule 3, Line 13z - Other Payments or Refundable Credits (Not Transcribed) If line 13z was used for other refundable credits that do not have a specific line, follow the table below: if the credit claimed is Then Form 8805 If Form 8805 is attached, "X" line 14, Schedule 3 and edit Form 8805 withholding to the dotted portion of Form 1040, line 33. If Form 8805 is not attached, correspond. Form 1042-S If Form 1042-S is attached, "X" line 14, Schedule 3 and edit Form 1042-S withholding to the dotted portion of Form 1040, line 33. If Form 1042-S is not attached, correspond. Form 8288-A If Form 8288-A is attached with a Date of Transfer within the tax period of the return, "X" line 14, Schedule 3 and edit the verified amount of the Form 8288-A withholding to the dotted portion of Form 1040, line 33. If Form 8288-A is attached with a Date of Transfer not within the tax period of the return, "X" line 14. Exception: When a Date of Transfer is in 2026 and Form 843 is not attachedcorrespond. If Form 8288-A is not attached, correspond. For TY 202607 and later, if the taxpayer has written 1062NL and an amount is present on line 13z, edit FPC "F" . Note: Do not edit FPC "F" if the return is a calendar year return. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 3, Line 14 - Total Other Payments and Refundable Credits

3.21.3.19.16 (10-30-2024) Schedule 3, Line 14 - Total Other Payments and Refundable Credits If line 14 is blank, dash, or zero, and there are any entries on lines 13a through 13z, compute and edit line 14 by adding lines 13a through 13z.

# Conversion of Form 1040A (TY17 and Prior) and Form 1040EZ (TY17 and Prior)

3.21.3.20 (01-01-2023) Conversion of Form 1040A (TY17 and Prior) and Form 1040EZ (TY17 and Prior) Convert everyForm 1040-A and Form 1040-EZ to Form 1040. Convert international conditions as follows: Attached to or entry on Form 1040-A or Form 1040EZ Action on Form 6114 or appropriate schedules Form 1042-S with "Worldwide Income" , income from all sources and includes foreign and U.S. income Form SSA-1042S attached to Form 1040-EZ Form 8288-A (after credit verification) Form 8689 Form 8805 Edit withholding to the dotted portion of Form 6114, line 33. Form 4563 or IRC 931 See IRM 3.21.3.76.1.3. Housing Deduction Edit housing deduction from Form 2555, line 50 to Schedule 1, line 25. IRC 871 Edit capital gain income to Form 6114, line 7, and edit exempt amount to Schedule 1, line 9 as a negative. IRC 893 Edit earned income to Form 6114 line 1a, and edit exempt amount to Schedule 1, line 9 as a negative. Valid Form 2555 or Form 2555-EZ, or IRC 911 Edit foreign income to Form 6114, line 1a, and edit foreign earned income exclusion to Schedule 1, line 9 as a negative. Valid Treaty Exempt Income Edit gross income amount to Form 6114, line 1a, and edit verified amount exempt by treaty to Schedule 1, line 9 as a negative. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule A (Sequence 07) - Itemized Deductions

3.21.3.21 (10-30-2024) Schedule A (Sequence 07) - Itemized Deductions The following lines on Schedule A are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 1 Line 4 Line 3 Line 7 Line 4 Line 10 General Sales Tax Checkbox Line 14 Lines 5a through 5c Line 17 Lines 6 and 7 Lines 8a through 8c Lines 9 through 17 Line 18 Checkbox A taxpayer may take a deduction on lines 5a, 5b, and/or 5c for taxes imposed by a U.S. territory. A taxpayer may take a deduction on line 6 for income taxes paid or accrued during the year to: a foreign country any political subdivision, agency, or instrumentality of the country If the taxpayer is prorating their itemized deductions (Schedule A) under IRC 933, accept the taxpayer's prorated amount for itemized deductions. When two amounts are present on line 17, "X" the larger amount. Schedule A (sequence 7A), Schedule NEC (sequence 7B), and Schedule OI (sequence 7C) are attachments for Form 1040-NR. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule B (Sequence 08) - Interest and Ordinary Dividends

3.21.3.22 (01-01-2024) Schedule B (Sequence 08) - Interest and Ordinary Dividends The following lines on Schedule B are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 2: edited to the left of line 2 There are no T-Compute Lines Line 3 Line 6: edited above the instructions for line 6 Foreign Account Indicator FinCEN Form 114 Indicator, Report of Foreign Bank and Financial Accounts (FBAR) Note: "X" Schedule B when attached to a Form 1040-NR. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule C (Sequence 09, 10, 11) - Profit or Loss from Business

3.21.3.23 (10-29-2025) Schedule C (Sequence 09, 10, 11) - Profit or Loss from Business The following lines on Schedule C are T-Lines and T-Compute Lines: T-Lines T-Compute Lines SSN Line 1 Lines A, B, C, D, F, H, I, and J Line 2 Statutory Employee Indicator Box Line 3 Lines 1 through 4 Line 28 Line 6 Line 9 Line 13 Line 15 Line 16a Line 17 Line 18 Line 21 Lines 24a and 24b Line 25 Lines 26 through 27b Line 28 Line 30 PAL Indicator to the left of Line 31. Line 32, "At-Risk" Indicator Boxes (no editing required) Line 35 Line 41 If the taxpayer is a bona fide resident of PR and indicates Schedule C income is excluded under IRC 933, take the following actions: "X" the Schedule C, Prepare a dummy Schedule C, and When dummying Schedule C, edit $1 for Gross Receipts (line 1), and edit the NAICS code if furnished by the taxpayer. Do not compute line 3. Note: If multiple Schedule Cs are excluded under IRC 933, prepare only one dummy Schedule C. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule D (Sequence 12) - Capital Gains and Losses

3.21.3.24 (04-24-2020) Schedule D (Sequence 12) - Capital Gains and Losses The following lines on Schedule D are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Yes/No Checkbox (TY19 and later) Line 7 Line 1a, columns (d) and (e) Line 15 Lines 1b - 3, columns (d), (e), and (g) Line 5 Line 7 Line 8a, columns (d) and (e) Lines 8b - 10, columns (d), (e), and (g) Line 12 Line 13 Line 15 Line 18 Line 19 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8949 (Sequence 12A) - Sales and Other Dispositions of Capital Assets

3.21.3.25 (03-04-2022) Form 8949 (Sequence 12A) - Sales and Other Dispositions of Capital Assets The following lines on Form 8949 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Entries with Z Code: Part I, col a Part I, col b Part I, col g Part I indicator, edited to the right of Part I, col h Part II, col a Part II, col b Part II, col g Part II indicator, edited to the right of Part II, col h Entries with Y Code (TY20 and later): Part I, col a Part I, col c Part I, col g Part I indicator, edited to the right of Part I, col h Part II, col a Part II, col c Part II, col g Part II indicator, edited to the right of Part II, col h There are no T-Compute Lines For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule E (Sequence 13) - Supplemental Income and Loss

3.21.3.26 (01-01-2019) Schedule E (Sequence 13) - Supplemental Income and Loss The following lines on Schedule E are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Checkboxes A and B Lines 23a through 23e Line 14, columns A - C Lines 24 and 25 Lines 23a through 23e Line 29a, columns (h) and (k) Lines 24 and 25 Line 29b, columns (g) and (i) Line 27, checkboxes Lines 30 and 31 Line 29a, columns (h) and (k) Lines 35 and 36 Line 29b, columns (g) and (i) Line 39 Lines 30 and 31 Line 34a, column (d) Line 34b, column (c) Lines 35 and 36 Line 37 - edited to the left of line 37 Lines 39 and 40 Lines 42 and 43 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule F (Sequence 14, 15) - Profit or Loss from Farming

3.21.3.27 (10-29-2025) Schedule F (Sequence 14, 15) - Profit or Loss from Farming The following lines on Schedule F are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Lines B, D, F, and G Line 9 Line 1b Line 33 Line 2 Line 44 Lines 3a and 3b Line 50 Lines 4a and 4b Line 5b Lines 6a and 6b Lines 7 - 9 Line 13 Line 19, 21a, 25, 28 and 33 PAL Indicator to the left of Line 34 Line 36, "At-Risk" Indicator Lines 38a 38b, and 39a Line 40b Line 43 Line 44 Line 50 If the taxpayer is a bona fide resident of PR and indicates Schedule F income is excluded under IRC 933, take the following actions: "X" the Schedule F, Prepare a dummy Schedule F, and When dummying Schedule F, edit $1 for Gross Income (line 9), and edit the NAICS code, if furnished by the taxpayer. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule R (Sequence 16) - Credit for the Elderly or the Disabled

3.21.3.28 (10-30-2024) Schedule R (Sequence 16) - Credit for the Elderly or the Disabled The following lines on Schedule R are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Lines 1 - 9 Line 13c, Part III Line 11, Part III Line 13c, Part III For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule SE (Sequence 17, 18) - Self-Employment Tax

3.21.3.29 (10-30-2024) Schedule SE (Sequence 17, 18) - Self-Employment Tax The Schedule SE Section A ("short form" ) is valid for TY19 and prior only. The following lines on Schedule SE are T-Lines and T-Compute Lines: T-Lines T-Compute Lines TIN Line 3 Lines 1a - 3 Line 8d SE Quarters Covered - edited to the right of line 4c Line 5a Line 8d SE Farm Code (Method Code) - edited in the center-bottom margin of page 1 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 1116 (Sequence 19) - Foreign Tax Credit

3.21.3.30 (01-01-2024) Form 1116 (Sequence 19) - Foreign Tax Credit The following lines on Form 1116 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Number of additional Form 1116 filed - edited to right margin of Part I heading Line 1a Line 1a Lines 6 through 8 Lines 6 - 8 Line 14 Line 14 Line 17 Lines 16 and 17 Line 21 Lines 21 - 24 Line 23 Lines 34 and 35 Line 35 If the amount on Form 1116, line 1a is the same as the amount reported on Form 2555, line 26 or Form 2555-EZ, line 17 (TY18 and prior), then: Adjust Form 1116, line 1a by subtracting the greater of Form 2555, line 42 or 45, or Form 2555-EZ, line 18 (TY18 and prior) from Form 1116, line 1a. See Figure 3.21.3-9. If Form 1116, line 1a is reduced to zero, "X" the amount on Schedule 3, line 1. Caution: If more than one Form 2555 or Form 2555-EZ (TY18 and prior) (each taxpayer can use either Form 2555 or Form 2555-EZ (TY18 and prior)) is attached, use the combined amounts for Form 2555, lines 26 and/or Form 2555-EZ, lines 17 (TY18 and prior) to compare to line 1a. If the taxpayer's intent is not to use Form 1116 (e.g., Form 1116, line 35 is blank or zero and Schedule 3, line 1 is blank or zero) or if the taxpayer claims a negative or zero on Form 1116, line 35, "X" Form 1116. Taxpayers earning income in the following countries are not allowed to take a foreign tax credit for foreign taxes paid to these countries. If the taxpayer takes the foreign tax credit (see Form 1116, Part II, Line 8) with respect to taxes paid to any of the following countries (see Form 1116, Part I, letter i, column A, B, or C), "X" both Form 1116, line 8 and Schedule 3, line 1. Country Starting Date Ending Date Iran January 1, 1987 Still in Effect North Korea January 1, 1987 Still in Effect Sudan February 12, 1994 Still in Effect Syria January 1, 1987 Still in Effect For additional instructions, refer to IRM 3.11.3.28.1. Exception: Do not refer to IRM 3.11.3 when Form 1116 has been deleted per IRM 3.21.3.30 (3) above. Figure 3.21.3-9 This figure contains 3 graphics.The first graphic represents a page 1 of Form 1116 with an arrow pointing to line 1a. There is also text box that reads, : If: The amount on Line 1a, Form 1116, is the same as the amount on Line 26, Form(s) 2555.The second graphic represents page 2 of Form 2555 with an arrow pointing to Line 26 from the text box on the second graphic.The third graphic represents page 3 of Form 2555 with a double arrow pointing to Line 42 and Line 45 from the text box from the third graphic.There is also a circle at the base of the double arrow with > of.There is a text box that reads Then: X and adjust Line 1a, Form 1116 by subtracting the greater sum of Line 42 or Line 45, Form(s) 2555. In this example, line 45 is greater (235000 - 131308 = 103692). Please click here for the text description of the image.

# Schedule J (Sequence 20) - Income Averaging for Individuals with income from Farming or Fishing

3.21.3.31 (10-30-2024) Schedule J (Sequence 20) - Income Averaging for Individuals with income from Farming or Fishing The following lines on Schedule J are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Lines 2a and 2b There are no T-Compute lines Line 8 Line 12 Line 16 Lines 19 - 21 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 2441 (Sequence 21) - Child and Dependent Care Expenses

3.21.3.32 (10-30-2024) Form 2441 (Sequence 21) - Child and Dependent Care Expenses The following lines on Form 2441 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Checkbox A Line 3 Checkbox B (TY22 and later) Line 26 Line 1, columns (a) and (c) Line 1, column (d) (TY22 and later) Line 2, Qualifying Persons (not edited) Line 2, columns (a), (b), (c), and (d) - (for the first 2 qualifying persons) Lines 3 through 5 Line 9b Line 12 Line 16 Line 25 Line 26 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 3800 (Sequence 22) - General Business Credit

3.21.3.33 (10-29-2025) Form 3800 (Sequence 22) - General Business Credit The following lines on Form 3800 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Part I, Lines 1 through 5 Line 25 Part II, Lines 24 through 26 Line 36 Part II, Line 36 Part III, Checkbox I (TY22 only) Part III, Line 1a, column g Part III, Line 1b, column b Part III, Line 1b, columns f - h Part III, Line 1b, column j Part III, Line 1c, column g Part III, Line 1d, columns b Part III, Line 1d, columns f and g Part III, Line 1e, column g Part III, Line 1f, columns b Part III, Line 1f, columns f and g Part III, Line 1g, column b Part III, Line 1g, columns f - h Part III, Line 1g, column j Part III, Line 1h, column g Part III, Line 1i, column g Part III, Line 1j, column g Part III, Line 1k, column g Part III, Line 1l, column b Part III, Line 1l, columns f-g Part III, Line 1m, column g Part III, Line 1n, column g Part III, Line 1o, column b Part III, Line 1o, columns g - h Part III, Line 1o, column j Part III, Line 1p, column g Part III, Line 1q, column b Part III, Line 1q, columns f - g Part III, Line 1s, column b Part III, Line 1s, columns f - g Part III, Line 1t, column g Part III, Line 1u, column b Part III, Line 1u, columns f - g Part III, Line 1v, column b Part III, Line 1v, columns f - g Part III, Line 1w, column g Part III, Line 1x, column b Part III, Line 1x, columns f - h Part III, Line 1x, column j Part III, Line 1y, column g Part III, Line 1aa, column g Part III, Line 1bb, column g Part III, Line 1cc, column g Part III, Line 1dd, column g Part III, Line 1ee, column g Part III, Line 1ff, column g Part III, Line 1gg, column b Part III, Line 1gg, column f - g Part III, Line 1zz, column g Part III, Line 3, column g Part III, Line 4a, columns b Part III, Line 4a, column f - g Part III, Line 4e, column b Part III, Line 4e, column f - g Part III, Line 4h, column g Part III, Line 4j, column g Part III, Line 4k column g Part III, Line 5 column g Center Bottom Margin, page 3 Amount from Form 3468, Part VII, Line 1i - edited on Page 3 in the bottom-right margin For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 4137 (Sequence 24, 25) - Social Security and Medicare Tax on Unreported Tip Income

3.21.3.34 (01-01-2015) Form 4137 (Sequence 24, 25) - Social Security and Medicare Tax on Unreported Tip Income The following lines on Form 4137 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Taxpayer TIN Line 2 Lines 1A through 1E, columns (a) through (d) Lines 2 and 3 Lines 5 and 6 Line 8 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 4684 (Sequence 26) - Casualties and Thefts

3.21.3.35 (01-01-2020) Form 4684 (Sequence 26) - Casualties and Thefts The following lines on Form 4684 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines FEMA Disaster Declaration Number Line 13 Line 1, Property A ZIP Code Line 14 Line 13 Line 16 Line 14 Line 16 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 4797 (Sequence 27) - Sales of Business Property

3.21.3.36 (10-30-2024) Form 4797 (Sequence 27) - Sales of Business Property The following lines on Form 4797 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Lines 1a through 1c Line 9 col g Lines 7 through 9 col g Gain on sale of animals - edited to Page 1, bottom-center margin For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 4972 (Sequence 28) - Tax on Lump-Sum Distributions

3.21.3.37 (01-01-2015) Form 4972 (Sequence 28) - Tax on Lump-Sum Distributions The following lines on Form 4972 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Lines 1 through 5b Line 12 Line 6 Lines 11 and 12 Line 18 Line 30 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 5329 (Sequence 29, 30) - Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts

3.21.3.38 (10-29-2025) Form 5329 (Sequence 29, 30) - Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts The following lines on Form 5329 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Spousal Indicator - edited to the left of the form title Line 4 Line 2 Exception number and amount Line 8 Line 4 Line 55 Line 8 Line 17 Line 25 Line 33 Line 41 Line 42 - 44 Line 49 Line 51 Line 55 IRA Condition Code - edited to Page 2, bottom-right margin For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 6198 (Sequence 31) - At-Risk Limitations

3.21.3.39 (01-01-2015) Form 6198 (Sequence 31) - At-Risk Limitations The following lines on Form 6198 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 5 Line 5 Lines 20 and 21 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 6251 (Sequence 32) - Alternative Minimum Tax - Individuals

3.21.3.40 (01-01-2019) Form 6251 (Sequence 32) - Alternative Minimum Tax - Individuals The following lines on Form 6251 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Lines 2c through 3 There are no T-Compute lines Line 8 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8615 (Sequence 33) - Tax for Certain Children Who Have Unearned Income

3.21.3.41 (01-01-2019) Form 8615 (Sequence 33) - Tax for Certain Children Who Have Unearned Income The following lines on Form 8615 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Lines A and B There are no T-Compute lines. Lines 1 and 2 Line 18 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 2555 and Form 2555-EZ (TY18 and prior) (Sequence 34, 35) - Foreign Earned Income Exclusion

3.21.3.42 (01-01-2020) Form 2555 and Form 2555-EZ (TY18 and prior) (Sequence 34, 35) - Foreign Earned Income Exclusion The following lines on Form 2555 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Post of Duty (POD) Code - top-center margin Line 22g (total allowances) Line 10 (Bona Fide Residence beginning date) Line 33 (housing expenses) Line 10 (Bona Fide Residence ending date) Line 42 (Foreign Earned Income Exclusion) Line 13a (declaration question - right margin) Line 50 (Housing Deduction) Line 14 (number of days in U.S. on business - right margin, just above 15a) Line 16 (Physical Presence qualifying period beginning date) Line 16 (Physical Presence qualifying period ending date) Line 18 (number of days in U.S. on business - right margin) Line 19 (foreign wages) Line 22g (total allowances) Line 25 (excludable Meals and Lodging) Line 33 (housing expenses) Line 36 (Housing Exclusion) Line 42 (Foreign Earned Income Exclusion) Line 45 (Housing Exclusion, Foreign Earned Income Exclusion, or both) Line 50 (Housing Deduction) The following lines on Form 2555-EZ (TY18 and prior) are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Post of Duty (POD) Code - top-center margin Line 18 Line 1b (Bona Fide Residence beginning and ending dates) Line 2b (Physical Presence qualifying period beginning and ending dates) Line 12 (number of days in U.S. on business - right margin, just above Part IV) Line 17 (foreign wages) Line 18 (Foreign Earned Income Exclusion)

# General Information for Form 2555 and Form 2555-EZ

3.21.3.42.1 (10-30-2024) General Information for Form 2555 and Form 2555-EZ U.S. citizens or resident aliens living abroad are taxed on their worldwide income (income from all sources and includes foreign and U.S. income) but may qualify to exclude from gross income up to $130,000 of their foreign earnings for tax year 2025 (per IRC 911(b)(2)(D)). In addition, they may be able to exclude or deduct certain foreign housing amounts. To claim the foreign earned income exclusion and, the foreign housing exclusion or the foreign housing deduction, the taxpayer must satisfy all three of the following requirements: The taxpayer's tax home must be in a foreign country or countries, The taxpayer must have foreign earned income, and The taxpayer must be one of the following: Qualifications for Claiming a Foreign Earned Income Exclusion A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes any tax year in its entirety and includes part of the tax year of the return. Note: An entire tax year is from January 1 through December 31 for taxpayers who file their income tax returns on a calendar year basis. A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect that has a nondiscrimination clause and who is a bona fide resident for an uninterrupted period that includes an entire tax year and includes part of the tax year of the return. A U.S. citizen or resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months, which also includes part of the tax year of the return. If the tax home on Form 2555 or Form 2555-EZ (TY18 and prior) is in a foreign country, the taxpayer is entitled to elect the IRC 911 foreign earned income exclusion even if the address on the Form 1040 is an address in the U.S. or in a U.S. territory. Taxpayers claiming a foreign earned income exclusion are not entitled to claim a credit for foreign taxes paid on the income that is being excluded. Editing is required if the amount on Form 1116, line 1a is the same as the total foreign earned income claimed by the taxpayer on Form 2555 or Form 2555-EZ. See IRM 3.21.3.30 for processing instructions.

# General Editing Instructions for Form 2555 and Form 2555-EZ

3.21.3.42.2 (03-20-2025) General Editing Instructions for Form 2555 and Form 2555-EZ Use the following table for general editing instructions for Form 2555 and Form 2555-EZ: Reminder: Form 2555-EZ is valid for TY18 and prior only. If And Then Taxpayer claims unearned income, including any of the following: Alimony Annuities Capital gains Dividends Gambling winnings Interest Pensions Retirement Social Security benefits Unemployment benefits Earned income is also claimed If the foreign earned income exclusion is claimed in the total reported on Schedule 1, line 9, adjust Schedule 1, line 9 to only exclude the earned income, "X" the amount(s) on Form 2555, lines 42 and/or 45 or Form 2555-EZ, line 18, and Ensure income is reported on Form 1040, lines 1a through 7a or Schedule 1, lines 1 through 7 or 9. Taxpayer claims unearned income, including any of the following: Alimony Annuities Capital gains Dividends Gambling winnings Interest Pensions Retirement Social Security benefits Unemployment benefits No earned income is included If the foreign earned income exclusion is claimed in the total reported on Schedule 1, line 9, "X" Schedule 1, line 9, If the housing deduction is claimed in the total reported on Schedule 1, line 25, "X" Schedule 1, line 25, "X" Form 2555 or Form 2555-EZ, Ensure income is reported on Form 1040, lines 1a through 7a or Schedule 1, lines 1 through 7 or 9, and If the deleted Form 2555 or Form 2555-EZ is the only foreign aspect of the return, rebatch the coded return as domestic. Taxpayer claims self-employment income from Schedule C or Schedule F Reports a net amount on Schedule 1, line 3 or Schedule 1, line 6, and Claims a foreign earned income exclusion for the gross amount by including it in the total reported on Schedule 1, line 9 Adjust Schedule 1, line 9 to only exclude the net amount. Taxpayer: U.S. Military or Lives and works in a U.S. territory or Resides in: Baker Island Howland Island Jarvis Island Johnston Atoll Kingman Reef Midway Atoll Palmyra Atoll Wake Island If the foreign earned income exclusion is claimed in the total reported on Schedule 1, line 9, "X" Schedule 1, line 9, If the housing deduction is claimed in the total reported on Schedule 1, line 25, "X" Schedule 1, line 25, "X" Form 2555 or Form 2555-EZ, Ensure income is reported on Form 1040, lines 1a through 7a or Schedule 1, lines 1 through 7 or 9, and If the deleted Form 2555 or Form 2555-EZ is the only foreign aspect of the return, rebatch the coded return as domestic. Exception: If a return shows income earned in the Federated States of Micronesia, Marshall Islands, or Palau Islands and Form 2555 or Form 2555-EZ is attached and valid, ALLOW the exclusion. Taxpayer makes no attempt to exclude income on Form 1040 or Schedule 1 Form 2555 or Form 2555-EZ does not include a claim for excluded income "X" Form 2555 or Form 2555-EZ. Multiple Form 2555 and/or Form 2555-EZ are attached for one taxpayer Combine related T-lines onto one Form 2555, "X" the other Form 2555 and Form 2555-EZ, Use the appropriate POD code for the Form 2555 or Form 2555-EZ with the most income on Form 2555, line 26, or Form 2555-EZ, line 17, Edit dates to include the longest qualifying period reported on all forms, and When combining Form 2555 with Form 2555-EZ, always combine onto Form 2555. Combine Form 2555-EZ, line 17 with Form 2555, line 19 and Form 2555-EZ, line 18 with Form 2555, lines 42 and 45. Note: Convert to Form 2555 when only Form 2555-EZ are present and their combined foreign earned income is over the maximum for the year. For TY25, the maximum is $130,000. Taxpayer enters beginning and ending dates that do not include part of the tax year of the return Correspond: If using Form 9143, checkbox 14. If using Form 13900, use the following literal: To exclude foreign earned income, the qualifying dates on Form 2555 or Form 2555-EZ must cover a part of the tax year of your tax return. Please verify your beginning and/or ending dates, and re-submit your Form 2555. If Form 2555 or Form 2555-EZ is valid: Ensure that the taxpayer reported all foreign earned income (from Form 2555, line 26, or Form 2555-EZ, line 17) either on the Form 1040 within lines 1a through 1h or on the Schedule 1 in line 3, 5, or 6. If the taxpayer did not report the earned income, edit the income to a line as follows: edit Form W-2, box 1 income to Form 1040, line 1a; edit income that belongs on Form 1040, lines 1b through 1h to Form 1040, line 1z; edit Schedule C income to Schedule 1, line 3; edit Schedule E income to Schedule 1, line 5; edit Schedule F income to Schedule 1, line 6; edit income to Form 1040, line 1a if source of income cannot be determined; and Ensure the exclusion (taken from, line 45, or line 42 (when line 45 is blank or zero) or Form 2555-EZ, line 18) is included in the total reported on Schedule 1, line 9. If not, adjust Schedule 1, line 9 to reflect its inclusion as a negative amount. If Form 2555 or Form 2555-EZ is invalid: Ensure that the taxpayer reported all foreign earned income (from Form 2555, line 26, or Form 2555-EZ, line 17) either on the Form 1040 within lines 1a through 1h or on the Schedule 1 in line 3, 5, or 6. If the taxpayer did not report the earned income, edit the income to a line as follows: edit Form W-2, box 1 income to Form 1040, line 1a; edit income that belongs on Form 1040, lines 1b through 1h to Form 1040, line 1z; edit Schedule C income to Schedule 1, line 3; edit Schedule E income to Schedule 1, line 5; edit Schedule F income to Schedule 1, line 6; edit income to Form 1040, line 1a if source of income cannot be determined; "X" Schedule 1, line 9, "X" Form 2555 or Form 2555-EZ, and If the deleted Form 2555 or Form 2555-EZ is the only foreign aspect of the return, rebatch the coded return as domestic.

# Form 2555 for Joint Filers

3.21.3.42.3 (01-01-2021) Form 2555 for Joint Filers Only two forms can be processed: One for the primary taxpayer (sequence code 34) One for the secondary taxpayer (sequence code 35) Note: Taxpayers might file Form 2555-EZ for prior years or the current year. Conversion of Form 2555-EZ to Form 2555 is not required at this point, unless one of the criteria at IRM 3.21.3.86.12.1 (2) is met. If a Form 2555 or Form 2555-EZ is for the secondary taxpayer, edit Sequence Code "35" . If two forms are submitted and only one is valid: Adjust Schedule 1, line 9 by deleting the amount for the invalid Form 2555 or Form 2555-EZ, if applicable, Adjust Schedule 1, line 25 by deleting the amount for the invalid Form 2555 or Form 2555-EZ, if applicable, "X" the invalid Form 2555 or Form 2555-EZ, and Make sure income is reported on the appropriate line. If two forms are submitted and neither one is valid: "X" Schedule 1, line 9, if foreign earned income exclusion is claimed, "X" Schedule 1, line 25, if foreign earned housing deduction is claimed, "X" both Form 2555 or Form 2555-EZ, Make sure income is reported on the appropriate line, and If the deleted Form 2555 or Form 2555-EZ are the only foreign aspects of the return, rebatch the coded return as domestic. If only one Form 2555 or Form 2555-EZ is submitted for both taxpayers, correspond for separate Form 2555 or Form 2555-EZ. See Figure 3.21.3-10. Caution: If the spouses are a missionary team, see IRM 3.21.3.42.3 (6) below. If the spouses are a missionary team and only one Form 2555 or Form 2555-EZ is submitted, DO NOT correspond. Divide the income equally between the two filers on separate Form 2555. Exception: If it can be determined that the income was earned by only one spouse, DO NOT divide the income. Process the Form 2555 or Form 2555-EZ as filed. Figure 3.21.3-10 This figure contains four graphics.The first graphic represents the top portion of Form 2555 (page 1). The names Marge and Chuck Finch are on the name line. The listed TIN is 000-00-2389.The second graphic represents a W-2 from The Quail Group (Employer Number 00-8462479), International Office, Singapore. The wages in box 1 are $20,000.00 and the withholding in box 2 is $1,992.00. The employee name is Marge Finch and the employee address is 2555 Heron Way, Singapore. The employee SSN is 000-00-2389.The third graphic represents a W-2 from The Pelican Corporation (Employer Number 00-3546793), International Office, Singapore. The wages in box 1 are $47,600.00 and the withholding in box 2 is $7,140.00. The employee name is Chuck Finch. The employee address is 2555 Heron Way, Singapore. The employee SSN is (000-00-1717),The fourth graphic shows a completed page 3 of Form 2555 is attached. Line 37 is $130,000.00. Line 38 shows 366 days. Line 39 is 1.000. Line 40 is $130,000.00. There is $67,600.00 on lines 41, 42, 43 and 45. A text box near line 34 on Form 2555 states Correspond for separate Forms 2555. Please click here for the text description of the image.

# Post of Duty (POD) Code

3.21.3.42.4 (01-01-2020) Post of Duty (POD) Code A POD Code must be edited to all Form 2555 or Form 2555-EZ (TY18 and prior). Edit the appropriate 2 alpha character POD Code in the top-center margin of Page 1, Form 2555 or Form 2555-EZ according to Exhibit 3.21.3-7. See Figure 3.21.3-11. Figure 3.21.3-11 This figure represents the completed top half of Form 2555:The name is Fiona Dalmatian.The TIN as 000-00-0205.Line 4b contains the Employer's foreign address, which is 1414 Calle Cojedes, Caracas, Venezuela. A POD (Post of Duty) of VE is edited in red in the top-center margin of Form 2555. The POD is edited based on a priority order from information that was entered by the taxpayer. The Employer's foreign address is the only priority area that was completed and the POD was then edited for Venezuela. Please click here for the text description of the image. Examine Form 2555 or Form 2555-EZ to determine where the foreign income was earned. Use the following priority order when determining the POD assignment: Address: Form 2555, line 1; Form 2555-EZ, line 4 Tax Home: Form 2555, line 9; Form 2555-EZ, line 11a Principal Country: Form 2555, line 17 Foreign address on Form 1040 Employer's foreign address: Form 2555, line 4b: Form 2555-EZ, line 8 Income statement Note: If multiple countries are present, edit the first with a listed POD. Reminder: If combining Form 2555 or Form 2555-EZ (TY18 and prior), edit the POD for the Form 2555 or Form 2555-EZ with the most income on Form 2555, line 26 or Form 2555-EZ, line 17. If the country in which the foreign income is earned is not listed in the POD Table, edit POD Code "XX" . If you cannot determine the POD after using instructions in IRM 3.21.3.42.4 (3) above, edit POD Code "XX" .

# Determining Bona Fide Residence and Physical Presence Dates

3.21.3.42.5 (10-29-2025) Determining Bona Fide Residence and Physical Presence Dates A U.S. citizen is considered a bona fide resident of a foreign country if his tax home has been in that foreign country for an uninterrupted period of time which includes a full calendar year and part of the tax year of the return. Before editing bona fide dates for restricted countries (Cuba, Iraq, and Libya), see IRM 3.21.3.42.5 (4). Note: Waiver of minimum time requirements - the minimum time requirements for bona fide residence and physical presence can be waived if the taxpayer must leave a foreign country because of war, civil unrest, or similar adverse conditions in that country. The following are the only countries for which a waiver may be claimed for 2025: Country Date of Departure On or After Note: Taxpayers may enter Claiming Waiver in the top margin on page 1 of Form 2555 to indicate they are claiming a waiver of time requirements. Note: Edit dates to cover a full calendar year using the dates provided by the taxpayer, if available. Otherwise, use the tax year of the return to determine the applicable dates. To qualify for bona fide residence, the taxpayer must reside in a foreign country or countries for an uninterrupted period that includes an entire tax year and includes part of the tax year of the return. Note: An entire tax year is from January 1 through December 31 for taxpayers who file their income tax returns on a calendar-year basis. Example: For TY25, the taxpayer enters bona fide dates of 11/01/2024 to 01/15/2026. The taxpayer completed an uninterrupted period of residence for a full tax year (2025) and therefore meets the bona fide residence test for tax years 2024, 2025, and 2026. Example: For TY25, the taxpayer enters bona fide dates of 10/01/2024 to 11/30/2025. The taxpayer did not complete an uninterrupted period of residence for a full tax year (2024 or 2025) and therefore does not meet the bona fide residence test in either year, but qualifies for physical presence for both years. To qualify for physical presence, the taxpayer must be physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months, which also includes part of the tax year of the return. Example: For TY25, the taxpayer enters physical presence dates of 01/05/2024 to 01/04/2025. The taxpayer meets the physical presence test for both tax years since the dates cover at least 330 days. Example: For TY25, the taxpayer enters physical presence dates of 01/01/2025 to 11/15/2025. The taxpayer does not meet the physical presence test for 2025 since the dates cover less than 330 days. A taxpayer living and working in a restricted country cannot claim the benefits under "IRC 911" : Caution: If the taxpayer meets either bona fide residence or physical presence, but the beginning date was within the restricted period, edit qualifying dates based on the end of the restriction. Restricted Country Beginning Date Ending Date Cuba Exception: If a non-military taxpayer files a Form 1040 with a Form 2555 exclusion from United States Naval base at Guantanamo Bay, allow the exclusion. January 1, 1987 Still in effect Iraq August 2, 1990 July 29, 2004 Libya January 1, 1987 September 20, 2004 Edit Beginning and Ending Dates in YYMM format for bona fide residence dates: Form 2555 - Part II, line 10 area Form 2555-EZ (TY18 and prior) - Part I, below line 1b Exception: If the beginning date is 1950 or earlier, then perfect the date in a YYYYMM format (e.g., September 1947 will be edited as "194709" ). Edit Beginning and Ending Dates in YYMM format for physical presence dates: Form 2555 - Part III, line 16 area Form 2555-EZ (TY18 and prior) - Part I, below line 2b Exception: If the beginning date is 1950 or earlier, then perfect the date in a YYYYMM format (e.g., September 1947 will be edited as "194709" ). On a TY25 return, if the dates are missing or don't meet either the bona fide residence or physical presence test, and one of the following notations or similar is present: Adverse conditions or Could not meet 330-day requirement for physical presence due to an emergency (e.g., medical condition or travel restrictions), Then allow the foreign earned income exclusion, and edit the physical presence dates provided. If dates are missing, edit dates for the calendar year (beginning date of "2501" and ending date of "2512" ). If both beginning and ending dates are present or can be determined, follow the table below. (If dates cannot be determined, see IRM 3.21.3.42.5 (9).) If And Then Only Bona Fide Residence dates are present The dates cover any full calendar year, and The dates include part of the current tax year Edit the dates in YYMM format in the Bona Fide Residence section. Example: If the taxpayer indicates the beginning date as January, 2025 and the ending date as December, 2025, edit "2501" as the beginning date and "2512" as the ending date. See Figure 3.21.3-12. Only Bona Fide Residence dates are present The dates do not cover any full calendar year, but The dates cover at least 330 days Edit the dates in YYMM format in the Physical Presence section. See Figure 3.21.3-13. Only Bona Fide Residence dates are present The dates are less than 330 days (unless IRM 3.21.3.42.5 (7) applies) If the foreign earned income exclusion is claimed in the total reported on Schedule 1, line 9, "X" Schedule 1, line 9, If the housing deduction is claimed in the total reported on Schedule 1, line 25, "X" Schedule 1, line 25, "X" Form 2555 or Form 2555-EZ, and If the deleted Form 2555 or Form 2555-EZ is the only foreign aspect of the return, rebatch the coded return as domestic. Only Physical Presence dates are present The dates cover at least 330 days Edit the dates in YYMM format in the Physical Presence section. Only Physical Presence dates are present The dates do not cover at least 330 days (unless IRM 3.21.3.42.5 (7) applies) If the foreign earned income exclusion is claimed in the total reported on Schedule 1, line 9, "X" Schedule 1, line 9, If the housing deduction is claimed in the total reported on Schedule 1, line 25, "X" Schedule 1, line 25, "X" Form 2555 or Form 2555-EZ, and If the deleted Form 2555 or Form 2555-EZ is the only foreign aspect of the return, rebatch the coded return as domestic. Both Bona Fide Residence and Physical Presence dates are present The dates are different, and Both dates meet the criteria for their tests Edit the dates for the longest period in the appropriate section. See Figure 3.21.3-14. Note: If only the Bona Fide Residence ending date is blank and the ending date can be perfected using IRM 3.21.3.42.5(9), edit Bona Fide Residence dates. Both Bona Fide Residence and Physical Presence dates are present The dates are the same, and Both dates meet the criteria for their tests Edit Bona Fide Residence dates. See Figure 3.21.3-15. Both Bona Fide Residence and Physical Presence dates are present Only one set of dates meets the criteria for its test Edit the dates which meet the criteria for its test. Both Bona Fide Residence and Physical Presence dates are present Neither sets of dates meets the Bona Fide Residence or Physical Presence tests (unless IRM 3.21.3.42.5 (7) applies) If the foreign earned income exclusion is claimed in the total reported on Schedule 1, line 9, "X" Schedule 1, line 9, If the housing deduction is claimed in the total reported on Schedule 1, line 25, "X" Schedule 1, line 25, "X" Form 2555 or Form 2555-EZ, and If the deleted Form 2555 or Form 2555-EZ is the only foreign aspect of the return, rebatch the coded return as domestic. Taxpayer enters beginning and ending dates that do not include part of the tax year of the return Correspond: If using Form 9143, checkbox 14. If using Form 13900, use the following literal: "To exclude foreign earned income, the qualifying dates on Form 2555 or Form 2555-EZ must cover a part of the tax year of your tax return. Please verify your beginning and/or ending dates, and re-submit your Form 2555." Caution: If the taxpayer enters an ending date beyond the received date of the return, edit the received date as the ending date (e.g., if the taxpayer's ending date is June 1, 2026 and the return received date is April 25, 2026, then edit the ending date as "2604" ). Figure 3.21.3-12 The figure represents half of Form 2555 (page 1):The name is Alexander Pelican.The TIN is 000-00-3887.The field Your foreign address on line 1 reads Bangkok, Thailand.A POD (Post of Duty) code of TH is edited in red in the top-center margin of Form 2555. The POD is edited based on the information on line 1.On line 10, the taxpayer entered the beginning Bona Fide Residence date as April 5, 2018 and the ending Bona Fide Residence date as August 15, 2025. The dates are edited in YYMM format on line 10 to the right of the original date. The beginning date is edited in red as 1804 and the ending date as 2508. Please click here for the text description of the image. Figure 3.21.3-13 This figure has two graphics. The first graphic represents half of Form 2555, page 1:The name is Tanya Balsam.The TIN is 000-00-2257.The foreign address on line 1 is Barcelona, Spain.A POD (Post of Duty) code of SP is edited in red in the top-center margin of Form 2555. The POD is edited from line 1.On line 10, the taxpayer entered the beginning Bona Fide Residence date as 05/09/24 and the ending Bona Fide Residence date as 05/17/25. Bona fide must cover any full calendar year, but since the taxpayer qualifies for the exclusion, the dates are moved to Physical Presence.The second graphic shows the top of Form 2555, page 2. The dates have been entered in the Physical Presence Test on line 16 in YYMM format. The beginning date is edited in red as 2405 and the ending date is 2505. Please click here for the text description of the image. Figure 3.21.3-14 This figure contains two graphics. The first graphic represents page 1 of Form 2555:The name is Steve Dolomite.The TIN is 000-00-9182.The foreign address on line 1 is Melbourne, Victoria, Australia.The occupation on line 2 is Cook.Line 10 contains the beginning Bona Fide residence date as Feb. 14, 1997 and the ending date as 2025.A POD (Post of Duty) code of AS is edited in red in the top-center margin of Form 2555. The code is entered based on the information provided by the taxpayer from his foreign address on line 1.The second graphic represents the top of page 2 of Form 2555. The Physical Presence dates provided by the taxpayer are on line 16. The beginning Physical Presence date is Jan. 1, 2025, and the ending date is Dec. 31, 2025.Either the Bona Fide Residence or Physical Presence dates (beginning and ending) must be edited in a YYMM format. The taxpayer completed both Bona Fide Residence and Physical Presence dates and the IRM states to edit the dates for the longest period. The longest period of dates is under Bona Fide Residence. On the first graphic, the beginning date is edited in red to the right of the date entered by the taxpayer as 9702, and the ending date is edited to the right of the date entered by the taxpayer as 2512. Please click here for the text description of the image. Figure 3.21.3-15 This figure represents 2 graphics. The first graphic represents page 1 of Form 2555:The name is Karen Marigold.The TIN is 000-00-2114.The foreign address on line 1 is Wellington, New Zealand.The occupation on line 2 is Doctor.Line 10 contains the beginning Bona Fide Residence date of Jan. 1, 2025 and the ending date of Dec. 31, 2025.The second graphic represents page 2 of Form 2555 showing the Physical Presence dates. Line 16 contains a beginning date of Jan. 1, 2025 and the ending date as Dec. 31, 2025.Returning to the first graphic, the Bona Fide Residence dates are edited in red because when the taxpayer completes the same qualifying Bona Fide Residence and Physical Presence dates, the IRM states to edit Bona Fide Residence dates as the priority. The dates are to be edited in a YYMM format. The beginning date is edited in red to the right of the date entered by the taxpayer as 2501, and the ending date is edited to the right of the date entered by the taxpayer as 2512. Please click here for the text description of the image. If beginning and/or ending dates are not present: If And Then The taxpayer indicates the tax home in the country is for a full calendar year by including notations such as: "since birth" "all my life" "still here" "continues" "N/A" "-" Reminder: These notations are not all-inclusive. If the beginning date is unknown, edit January of the tax year as the beginning date (e.g., for a TY25 return, edit "2501" ). See Figure 3.21.3-16. If the ending date is unknown: Edit the received date as the ending date (e.g., if the received date is June 2026, edit "2606" ). Edit CCC "N" on a late-filed return when the ending date is after the tax period of the return. See Figure 3.21.3-17. Any of the following conditions are present: No beginning date (ending date is present) No ending date (beginning date is present) No dates Only months are present (e.g., Jan. - Dec.) The number of days on Form 2555, line 31 or 38 (Form 2555-EZ, line 14) is 365 or 366 Edit qualifying Bona Fide Residence dates to cover a full calendar year. See Figure 3.21.3-18. Note: If the beginning date is unknown, edit January, and if the ending date is unknown, edit December. Any of the following conditions are present: No beginning date (ending date is present) No ending date (beginning date is present) No dates Only months are present (e.g., Jan. - Dec.) The number of days on Form 2555, line 31 or 38 (Form 2555-EZ, line 14) is 330-364 Edit qualifying Physical Presence dates to cover a full calendar year. See Figure 3.21.3-19. Note: If the beginning date is unknown, edit January (YY01), and if the ending date is unknown, edit December (YY12). Any of the following conditions are present: No beginning date (ending date is present) No ending date (beginning date is present) No dates Only months are present (e.g., Jan. - Dec.) The number of days on Form 2555, line 31 or 38 (Form 2555-EZ, line 14) is less than 330 or blank (unless IRM 3.21.3.42.5 (7) applies) Correspond. Note: Do not "X" the exclusion (Form 2555 or Form 2555-EZ (TY18 and prior)) based on the number of days being less than 330 days before corresponding with the taxpayer. Only a year is provided for either the Bona Fide Residence or the Physical Presence dates In whichever area the taxpayer entered the year: Edit the beginning date as YY01, and Edit the ending date as YY12. Figure 3.21.3-16 This figure represents page 1 of Form 2555.The name is Barbara B. Heron.The TIN is 000-00-2848.The foreign address on line 1 is 7428 Rue De La Aurora Paris, France.The occupation on line 2 is Hotelier.A POD (Post of Duty) code of FR is edited in red in the top-center margin of the Form 2555. The code is edited based on the information provided by the taxpayer from line 1.Line 10 shows the beginning Bona Fide Residence date as Birth and the ending date as a December 2025.The Bona Fide Residence dates (beginning and ending) must be edited in a YYMM format. When the beginning date is Birth, use January of the tax year as the beginning date. The beginning date is edited in red to the right of the date entered by the taxpayer as 2501, and the ending date is edited in red to the right of the date entered by the taxpayer as 2512. Please click here for the text description of the image. Figure 3.21.3-17 This figure contains two separate graphics. The first graphic represents page 1 of Form 2555:The name is Helen Blueberry.The TIN is 000-00-5792.The foreign address on line 1 is Copenhagen, Denmark.A POD (Post of Duty) code of DA is edited in red in the top-center margin of the Form 2555. The code is edited based on the information provided by the taxpayer from her foreign address on line 1.Line 10 contains the beginning Bona Fide Residence date as July 2000 and the ending date as Still there.The Bona Fide Residence dates (beginning and ending) must be edited in a YYMM format. The beginning date is edited in red to the right of the date entered by the taxpayer as 0007, and the ending date is edited in red to the right of the date entered by the taxpayer as 2606.The second graphic represents a partial Form 1040, which has an IRS received date stamped on it as 06222026. The received date is used in order to edit the Bona Fide Residence ending date when there is no date entered by the taxpayer, or the line contains notations such as still there or continues. Please click here for the text description of the image. Figure 3.21.3-18 This figure contains two separate graphics. The first graphic represents Form 2555 (page 1):The name is Donna Greyhound.The TIN is 000-00-7301.The foreign address on line 1 is Monte Carlo, Monaco.The occupation on line 2 is Lawyer.A POD (Post of Duty) code of MN is edited in red in the top-center margin of the Form 2555. The code is edited based on the information provided by the taxpayer from her foreign address on line 1.There are no dates entered by the taxpayer in the Bona Fide Residence section.The second graphic represents page 3 of Form 2555, on which the taxpayer completed line 38 (number of days) by entering 365. There is a blurb on the Form 2555 with an arrow pointing to line 38 which states When line 38 of Form 2555 is 365 days, edit Bona Fide Residence dates covering a full calendar year. The Bona Fide dates must be entered in a YYMM format.Returning to the first graphic, the beginning Bona Fide date is entered as 2501 and the ending Bona Fide date is entered as 2512 on page 1 of Form 2555. Please click here for the text description of the image. Figure 3.21.3-19 This figure contains two graphics. The first graphic represents Form 2555 (page 2) showing that there are no Physical Presence dates entered by the taxpayer on line 16 and there are no statements.The second graphic represents Form 2555 (page 3):The taxpayer completed line 31 (number of days) by entering 347.There is a text box on the Form 2555 (page 3) with an arrow pointing to line 31 which states Do Not Correspond for Dates.Lines 42 and 45 on Form 2555 (page 3) show 25,000.There is no correspondence required for this return because the number of days on line 31 is within 330 and 364, which qualifies the taxpayer under the Physical Presence test.The Physical Presence dates must be entered in a YYMM format. Line 16 of Form 2555 (page 2) has a Physical Presence beginning date entered as 2501 and has a Physical Presence ending date entered as 2512. Please click here for the text description of the image.

# Form 2555 - Page 1, Parts I and II

3.21.3.42.6 (01-01-2015) Form 2555 - Page 1, Parts I and II If page 1 is missing, correspond. Exception: If page 2 is complete, including physical presence dates, and page 1 is missing, dummy page 1 of Form 2555. If Part III is complete, do not correspond for Part II. POD Code (top-center of Form 2555): See IRM 3.21.3.42.4 and Exhibit 3.21.3-7. If the country cannot be determined, edit POD "XX" . Bona Fide residence dates, Line 10: See IRM 3.21.3.42.5. Declaration Questions: Edit a "4" in the margin to the right of line 13a if any of the following conditions are found. See Figure 3.21.3-20. Line 13(a): YES box checked Line 13(b): NO box checked Line 15(c): YES box checked Line 15(d): YES box checked Caution: Do not edit "4" for declaration questions if dates are being moved from bona fide residence to physical presence or if the only dates present are physical presence dates. Line 14 columns (c): Days in the United States on business: "Number of days in U.S. on business" (third and seventh columns under line 14): Add the number of days listed. See Figure 3.21.3-20. Exception: Do not include days in the U.S. with notations of "illness," "personal," or "vacation." Edit the sum in the margin to the right of line 14 and just above line 15a. See Figure 3.21.3-20. Note: If dates are being moved from bona fide residence to physical presence, also move number of days in the U.S. on business, if present. If only physical presence dates are present, move the number of days entered by the taxpayer from page 1 to page 2. Figure 3.21.3-20 This figure represents page 1 of Form 2555:The name is Donald Alewife.The TIN is 000-00-4804.The foreign address on line 1 is Turks and Caicos Islands.The occupation on line 2 is Artist.A POD (Post of Duty) code of TK is edited in red in the top-center margin of Form 2555. The code is entered based on the information provided by the taxpayer from the foreign address on line 1.On line 10, the taxpayer entered the beginning Bona Fide date as September 2007 and the ending Bona Fide date as December 2025.On line 13a, the yes box is checked.On line 13b, the no box is checked.On line 15c, the yes box is checked.On line 15d, the no box is checked.Line 14 contains a table for the taxpayer to provide information about their presence in the United States. The table contains four rows and four columns.The first row has -2-2-25 in column (a), date arrived in the U.S. In column (b), date left the U.S., it says 2-15-25. In column (c), number of days in the U.S. on business, it says 13. In column (d), income earned in the U.S. on business, it says 8000.The second row has 6-3-25 in column (a), date arrived in the U.S. In column (b), date left the U.S., it says 6-24-25. In column (c), number of days in the U.S. on business, it says 21. In column (d), income earned in the U.S. on business, it says Holiday because no income was earned during that period.The third row has 8-1-25 in column (a), date arrived in the U.S. In column (b), date left the U.S., it says 8-10-25. In column (c), number of days in the U.S. on business, it says 9. In column (d), income earned in the U.S. on business, it says 500.The Bona Fide beginning date is entered in red to the right of the date entered by the taxpayer as 0709, and the Bona Fide ending date is edited in red above the date entered by the taxpayer as 2512. There is a red 4 (declaration question) entered in the right margin, to the right of the no box between lines 13a and 13b. The 4 is entered because of any of the following conditions: 13a is checked yes, 13b is checked no, 15c is checked yes, or 15d is checked no. There is a red 22, indicating the number of days in the U.S. on n business edited in the right margin, to the right and just above line 15a. There is a text box arrowed to line 14 column (d) which states If vacation, personal, or illness is noted in this column, do not include in the total. The amount on line 14 included the days from row 1 and row 3 of the table shown in line 14. Please click here for the text description of the image.

# Form 2555 - Page 2, Part III

3.21.3.42.7 (01-01-2016) Form 2555 - Page 2, Part III Physical Presence Dates, Line 16: See IRM 3.21.3.42.5. Line 18 column (e) - Days in the United States on Business: "Number of days in U.S. on business" (fifth column under line 18): Add the number of days listed. Exception: Do not include days in the U.S. with notations of "illness," "personal," or "vacation" . Edit the sum in the margin to the right of line 18 and just above the Part IV. If line 18 column (e) is blank and only Physical Presence dates are present, edit number of days in U.S. on business from line 14c.

# Form 2555 - Page 2, Part IV

3.21.3.42.8 (10-30-2024) Form 2555 - Page 2, Part IV Page 2 of Form 2555must be completed by the taxpayer. If page 2 is missing or there are no significant T-line entries present or edited, correspond. Note: All amounts are to be reported in U.S. currency ONLY. Convert any amounts reported in foreign currency to U.S. dollars using the exchange rate table appropriate for the tax period of the filer's tax return. Line 19, Total Wages: If blank, dash, or zero and an amount is present on line 26, edit the line 26 entry to line 19. If lines 19 and 26 are blank, dash, or zero and an entry appears on line 20a, edit the amount to line 19. Line 22g, Total Allowances: Compute and edit when blank, dash, or zero and there are entries present on lines 22a through 22f. "X" the amount on line 22g as misplaced when lines 22a - 22f are blank and line 22g is the same as line 26. Line 26: Taxpayers claiming a foreign earned income exclusion are not entitled to claim the same amount on Form 1116, line 1a. See IRM 3.21.3.30.

# Form 2555 - Page 3, Parts V, VI, VII, VIII, and IX

3.21.3.42.9 (10-30-2024) Form 2555 - Page 3, Parts V, VI, VII, VIII, and IX If the taxpayer is claiming an exclusion from Form 2555, then page 3 must be completed. Either line 42 or line 45 must be present or edited. If both are missing, correspond for Form 2555, Page 3. Note: If the taxpayer enters zero on line 42 and/or 45, do not correspond; continue processing. Line 33, Housing Expense: Compute and edit when blank, dash, or zero by subtracting line 32 from line 30. Line 36, Housing Exclusion: Qualified individuals may separately elect to claim the housing exclusion or the housing deduction, in addition to the foreign earned income exclusion. The housing exclusion applies only to amounts considered paid for with employer-provided amounts. The housing deduction applies only to amounts paid for with self-employment earnings. Line 42, Foreign Earned Income Exclusion: If blank, and line 40 and/or line 41 have entries, then edit the smaller amount to line 42. If there is no amount present on line 45, ensure the line 42 amount (or combined line 42 amounts, if the primary and secondary taxpayers each submitted a Form 2555) is included as a negative in the total on Schedule 1, line 9. If the taxpayer is claiming an exclusion, line 42 cannot be edited, and line 45 is blank, then correspond for Form 2555, Page 3. Line 45, Housing Exclusion and/or Foreign Earned Income Exclusion: The taxpayer may include an amount for a prior year exclusion by making a notation on the dotted portion of line 45. If this notated amount is included in the total on line 45, accept the taxpayer's figure. If this amount is the only Form 2555 exclusion claimed, accept the taxpayer's figures. DO NOT correspond for dates. DO NOT edit POD or dates. If there is an amount present on line 45 (or on two lines 45, if the primary and secondary taxpayers each submitted a Form 2555), ensure this amount is included as a negative in the total on Schedule 1, line 9. See Figure 3.21.3-21. Line 50, Housing Deduction: If blank, dash, zero, or illegible, compute the housing deduction amount by adding lines 48 and 49. If not already included by the taxpayer, edit the housing deduction amount to be included in the total on Schedule 1, line 25. Figure 3.21.3-21 This figure represents four graphics.The first graphic represents page 2 of a current Form 2555:The same entry of 65000 shows on lines 24 and 26. Line 26 represents the total claimed foreign earned income.The second graphic represents page 3 of a current Form 2555:The entry of 130000 shows on line 40.The same entry of 65000 shows on lines 41, 42, 43, and 45. Line 45 represents the total claimed foreign earned income exclusion.A text box states, Valid 2555 dates are present.The third graphic represents page 1 of a current Schedule 1, Form 1040:The same entry of 20000 shows on line 8b for gambling income and line 9 for the total other income.The line 9 entry is deleted with a red X to its left.A new amount of 45000 with brackets around it to show it is negative is edited in red to the left of line 9. This amount was calculated by adding the 20000 gambling income to the negative 45000, which is the foreign earned income exclusion claimed on Form 2555, line 45.The fourth graphic represents page 1 of a current Form 1040:The single filing status box is checked.The name is Nolan Burbot.The address is 723 Iridium Avenue, New Orleans, LA 70113.The TIN is 000-00-1792.An entry of 65000 is edited in red on line 1a and line 1z. This is the total foreign earned income claimed on Form 2555, line 26 that was not properly reported as income. Please click here for the text description of the image.

# Form 8283 (Sequence 36) - Noncash Charitable Contributions

3.21.3.43 (10-29-2025) Form 8283 (Sequence 36) - Noncash Charitable Contributions The following lines on the Form 8283 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Part I, Line 2 checkboxes There are no T-Compute lines for this form. Part I, Line 3A, columns c-d Part I, Line 3A, column f Part IV, Appraiser Signature Indicator Part IV, Identifying Number Part V, Date Part V, EIN Part V, Authorized Signature Indicator Additional Form 8283 Indicator - edited in the lower right margin For additional instructions see IRM 3.11.3.40.

# Form 4835 (Sequence 37) - Farm Rental Income and Expenses

3.21.3.44 (01-01-2015) Form 4835 (Sequence 37) - Farm Rental Income and Expenses The following lines on Form 4835 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 1 There are no T-Compute Lines Line 2a Line 3a Lines 4a and 4b Line 5a Line 6 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8839 (Sequence 38) - Qualified Adoption Expenses

3.21.3.45 (10-30-2024) Form 8839 (Sequence 38) - Qualified Adoption Expenses The following lines on Form 8839 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 1, columns (a) through (g) Line 23 Line 3 - edited for Child 1, Child 2, and Child 3 Line 31 Line 5 - edited for Child 1, Child 2, and Child 3 Line 11a - edited for Child 1, Child 2, and Child 3 Line 15 Line 23 Line 29 - Edited for Child 1, Child 2, and Child 3 Line 30 Line 31 Documentation Indicator - edited below Line 1, column (g) For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8853 (Sequence 39) - Archer MSAs and Long-Term Care Insurance Contracts

3.21.3.46 (01-01-2015) Form 8853 (Sequence 39) - Archer MSAs and Long-Term Care Insurance Contracts The following lines on Form 8853 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines TIN There are no T-Compute Lines Lines 1 - 4 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8814 (Sequence 40, 41, 42) - Parents' Election to Report Child's Interest and Dividends

3.21.3.47 (01-01-2015) Form 8814 (Sequence 40, 41, 42) - Parents' Election to Report Child's Interest and Dividends The following lines on Form 8814 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Child's Name Control Line 15 Child's TIN Lines 1a and 1b Line 2a Line 3 Line 15 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule EIC (Sequence 43) - Earned Income Credit

3.21.3.48 (10-29-2025) Schedule EIC (Sequence 43) - Earned Income Credit The following lines on Schedule EIC are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 1 - Child's Name Control (Child 1, 2, and 3) There are no T-Compute Lines Line 2 - Child's SSN(Child 1, 2, and 3) Line 3 - Year of Birth (Child 1, 2, and 3) Line 4a - Under Age 24 checkbox (Child 1, 2, and 3) Line 4b - Disabled checkbox (Child 1, 2, and 3) Line 5 - Relationship Code (Child 1, 2, and 3) Line 6 - Number of Months (Child 1, 2, and 3) If the taxpayer's address is outside the U.S., see IRM 3.21.3.15.1.31. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule H/Schedule H (sp)/Schedule H-PR (Sequence 44, 45) - Household Employment Taxes

3.21.3.49 (10-30-2024) Schedule H/Schedule H (sp)/Schedule H-PR (Sequence 44, 45) - Household Employment Taxes The following lines on Schedule H are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Employer's Name Control Line 8 Employer's TIN Line 18 Employer's EIN Line 19 Line 1 Line 24 Line 3 Lines 5 - 7 Line 8 FUTA Indicator Code - edited under Yes/No boxes, Page 2, Part II Lines 13 - 16 Line 17, column (a) Line 18, column (h) Lines 19 - 20 Lines 23 - 24 Additional States Indicator - edited in bottom - left margin If a TY23 or later loose Schedule H (sp) or a TY22 or prior loose Schedule H-PR contains no money amount entries, give the Schedule H (sp) or Schedule H-PR to your work leader. The work leader will dispose of the loose Schedule H (sp) or Schedule H-PR in accordance with classified waste procedures. When money amounts are reported on a loose Schedule H (sp) or Schedule H-PR, prepare a "dummy" Form 1040-SS (sp). Follow these procedures when preparing a "dummy" Form 1040-SS(sp): Complete the caption information using the information from the Schedule H (sp) or Schedule H-PR name line and Part IV address area. Edit FSC "1" or "2" based on the Schedule H (sp) or Schedule H-PR name line. Edit Form 1040-SS (sp), lines 4, 7, and 16 from Schedule H (sp) or Schedule H-PR, Part II, line 16 or 24 (FUTA tax). (If Part II was not completed, use the amount from Schedule H (sp) or Schedule H-PR, Part I, line 8a.) Edit CCC "3" . Edit RPC "Y" . If Schedule H (sp) or Schedule H-PR is missing a valid signature or documentary evidence, correspond with Form 13975, using the following fill-in: "If you are not required to file a tax return, send us a completed Schedule H (sp) or Schedule H-PR, Part IV with your original signature. If someone other than the taxpayer is signing Schedule H (sp) or Schedule H-PR, include a power of attorney, court certificate, or Form 2848." When a loose Schedule H is received, process the Schedule H using instructions in IRM 3.11.3, Individual Income Tax Returns. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 8812 (Sequence 47) - Credits for Qualifying Children and Other Dependents

3.21.3.50 (10-29-2025) Schedule 8812 (Sequence 47) - Credits for Qualifying Children and Other Dependents The following lines on Schedule 8812 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 18a There are no T-Compute Lines Line 18b Line 21 If the taxpayer appears to be a bona fide resident of Puerto Rico ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, has only Puerto Rico source income (e.g., Form(s) 499R-2/W-2PR), and appears to be filing only to claim the additional child tax credit, correspond following the instructions at IRM 3.21.3.80.1.1 (2). If the taxpayer appears to be a bona fide resident of Puerto Rico ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, but is filing a Form 1040 to report non-Puerto Rico source income along with claiming the additional child tax credit, continue processing the return. Edit the total Social Security and Medicare tax withheld amounts from all Forms W-2 (boxes 4 and 6), Forms 499R-2/W-2PR (boxes 21 and 23), and attachments on Schedule 8812, line 21 when both of the following conditions are present: Line 16b, Schedule 8812 is $5,100 or more Line 21, Schedule 8812, is blank, dash, or zero and there is an amount on line 28 Form 1040 Note: The notation "FICA" on an attachment indicates Social Security tax withheld. If unable to edit an amount to line 21 using the instructions above, "X" Form 1040, line 28. Exception: Do not"X" Form 1040, line 28 if you can determine that all income is from self-employment or HSH, or if there is an indication that the taxpayer has filed Form 4029. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8606 (Sequence 48, 49) - Nondeductible IRAs

3.21.3.51 (01-01-2019) Form 8606 (Sequence 48, 49) - Nondeductible IRAs The following lines on Form 8606 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Spousal Indicator - edited to the left of the form title Line 15c Line 7 Line 15c Line 16 Line 17 Line 18 Line 22 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8863 (Sequence 50) - Education Credits (American Opportunity and Lifetime Learning Credits)

3.21.3.52 (01-01-2015) Form 8863 (Sequence 50) - Education Credits (American Opportunity and Lifetime Learning Credits) The following lines in Part I - Refundable American Opportunity Credit on Form 8863 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 1 Line 1 The following lines in Part II - Nonrefundable Education Credits on Form 8863 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 10 Line 10 The following lines in Part III - Student and Educational Institution Information on Form 8863 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 20 There are no T-Compute Lines Line 21 Line 22, Column A, Line 4 Line 22, Column B, Line 4 Line 23 Line 24 Line 25 Line 26 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 4952 (Sequence 51) - Investment Interest Expense Deduction

3.21.3.53 (01-01-2015) Form 4952 (Sequence 51) - Investment Interest Expense Deduction The following lines on Form 4952 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 4e There are no T-Compute Lines Line 4g For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8889 (Sequence 52, 53) - Health Savings Accounts (HSAs)

3.21.3.54 (01-01-2021) Form 8889 (Sequence 52, 53) - Health Savings Accounts (HSAs) Use Sequence Code "52" for the primary taxpayer and "53" for the secondary taxpayer, even if only one form is filed. The following lines on Form 8889 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Lines 1 through 21 Line 16 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8880 (Sequence 54) - Credit for Qualified Retirement Savings Contributions

3.21.3.55 (01-01-2015) Form 8880 (Sequence 54) - Credit for Qualified Retirement Savings Contributions The following lines on Form 8880 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Lines 6a and 6b There are no T-Compute Lines For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8995, Form 8995-A, and Form 8995-A Schedule C (Sequence 55/55A/55D) - Qualified Business Income Deduction

3.21.3.56 (01-01-2023) Form 8995, Form 8995-A, and Form 8995-A Schedule C (Sequence 55/55A/55D) - Qualified Business Income Deduction The following lines on Form 8995 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Lines 2 and 3 Line 5 Lines 5 through 7 Line 9 Line 9 Line 16 Line 12 Line 17 Lines 16 and 17 The following lines on Form 8995-A are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Lines 27 through 29 Line 31 Line 31 Line 40 Line 34 Line 38 Line 40 The following lines on Form 8995-A, Schedule C are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 2 Line 6 Line 6 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8888 (Sequence 56) - Allocation of Refund (Including Savings Bond Purchases)

3.21.3.57 (10-30-2024) Form 8888 (Sequence 56) - Allocation of Refund (Including Savings Bond Purchases) The following lines on Form 8888 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Lines 1a - 1d There are no T-Compute Lines Lines 2a - 2d Lines 3a - 3d Line 4 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8978 (Sequence 57) - Partner's Additional Reporting Year Tax

3.21.3.58 (01-01-2023) Form 8978 (Sequence 57) - Partner's Additional Reporting Year Tax The following lines on Form 8978 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Review Year Adj Code Checkbox (below entity) Line 14 Line 14 Line 16 Line 16 Line 18 Line 18 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8919 (Sequence 61, 62) - Uncollected Social Security and Medicare Tax on Wages

3.21.3.59 (01-01-2015) Form 8919 (Sequence 61, 62) - Uncollected Social Security and Medicare Tax on Wages The following lines on Form 8919 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Taxpayer TIN Line 6 Lines 1 through 3, columns (a) through (f) Line 13 Line 6 Line 8 Line 13 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8958 (Sequence 63) - Allocation of Tax Amounts Between Certain Individuals in Community Property States

3.21.3.60 (01-01-2015) Form 8958 (Sequence 63) - Allocation of Tax Amounts Between Certain Individuals in Community Property States The following lines on Form 8958 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Spouse's or Partner's First Name There are no T-Compute Lines Spouse's or Partner's Last Name Spouse's or Partner's Social Security Number For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 461 (Sequence 64) - Limitation on Business Losses

3.21.3.61 (11-12-2021) Form 461 (Sequence 64) - Limitation on Business Losses The following lines on Form 461 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Lines 8 through 12 Line 9 Line 16 Line 12 Line 16 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8941 (Sequence 65, 66) - Credit for Small Employer Health Insurance Premiums

3.21.3.62 (01-01-2018) Form 8941 (Sequence 65, 66) - Credit for Small Employer Health Insurance Premiums Only 2 forms can be processed: One for the primary taxpayer (Sequence Code 65) One for the secondary taxpayer (Sequence Code 66) The following lines on Form 8941 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Identifying Number (Top Right) There are no T-Compute Lines A - SHOP (Small Business Health Options Program) Checkbox B - Employment Taxes Employer Identification Number C - Two-Year Declaration Checkbox Lines 1 through 5 Line 10 Lines 13 through 16 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 6252 (Sequence 67) - Installment Sale Income

3.21.3.63 (01-01-2021) Form 6252 (Sequence 67) - Installment Sale Income The following lines on Form 6252 are the T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 1 Line 7 Lines 2a and 2b Line 19 Line 7 Line 19 Line 21 Line 23 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8936 (Sequence 69) - Clean Vehicle Credits

3.21.3.64 (01-01-2024) Form 8936 (Sequence 69) - Clean Vehicle Credits The following lines on Form 8936 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 4 Line 4 Line 5 Line 7 Line 20 For TY23 and later, correspond for a missing Form 8936 Schedule A if both of these conditions are present: Form 8936 is present with an amount on line 6 or line 19, and Form 3800, Part III, line 1y or line 1aa has an amount. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8936 Schedule A (Sequence 69A) - Clean Vehicle Credit Amount

3.21.3.65 (10-29-2025) Form 8936 Schedule A (Sequence 69A) - Clean Vehicle Credit Amount The following lines on Form 8936 Schedule A are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 2 Line 17 Additional Form 8936 Schedule A Indicator (margin to the right of line 2) Line 26 Line 3 Lines 4a-4b Lines 9 and 10 Line 17 Line 26 For TY23 and later: Up to two Form 8936 Schedule A can be transcribed. Edit the first two Form 8936 Schedule A, and delete any others. When more than two Form 8936 Schedule A are attached, edit the Additional Form 8936 Schedule A Indicator "1" to the first schedule attached in the margin to the right of line 2. For TY22 and prior, "X" Form 8936 Schedule A.

# Line 2 - Vehicle Identification Number

3.21.3.65.1 (03-20-2025) Line 2 - Vehicle Identification Number "X" the amount on Part II, line 9, Part IV line 17, and/or Part V, line 26 if the VIN is incomplete (other than 17 characters) or has other than alphanumeric characters

# Line 10 - Business/Investment Use Percentage

3.21.3.65.2 (10-29-2025) Line 10 - Business/Investment Use Percentage When an entry is reported on line 10, edit as a three-digit whole number. See chart below: Reported As Edit As 0.00001 000 0.001 000 0.01 001 0.99999 099 1.00000 100 .7 070 .12345 012 20% 020 75% 075

# Form 8867 (Sequence 70) - Paid Preparer's Due Diligence Checklist

3.21.3.66 (10-30-2024) Form 8867 (Sequence 70) - Paid Preparer's Due Diligence Checklist The following lines on Form 8867 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines EIC Column checkbox There are no T-Compute Lines CTC Column checkbox AOTC Column checkbox HOH Column checkbox Line 15 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8959 (Sequence 71) - Additional Medicare Tax

3.21.3.67 (01-01-2017) Form 8959 (Sequence 71) - Additional Medicare Tax The following lines on Form 8959 are T-Lines and T-Compute Lines. T-Lines T-Compute Lines Lines 1 through 3 There are no T-Compute Lines Lines 7 and 8 Lines 13 and 14 Lines 17 through 19 Lines 23 and 24 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8960 (Sequence 72) - Net Investment Income Tax - Individuals, Estates, and Trusts

3.21.3.68 (01-01-2015) Form 8960 (Sequence 72) - Net Investment Income Tax - Individuals, Estates, and Trusts The following lines on Form 8960 are T-Lines and T-Compute Lines. T-Lines T-Compute Lines Investment Income checkboxes Line 8 Lines 1 through 3 Line 11 Lines 4a and 4b Lines 5a through 5c Lines 6 through 8 Lines 9a through 9c Lines 10 and 11 Line 13 Lines 16 and 17 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8962 (Sequence 73, 74) - Premium Tax Credit (PTC)

3.21.3.69 (01-01-2021) Form 8962 (Sequence 73, 74) - Premium Tax Credit (PTC) Sequence code "73" is used for page 1. Sequence code "74" is used for page 2 only if T-line entries are present. The following lines on Form 8962, Page 1 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Married Filing Separately PTC exception checkbox There are no T-Compute Lines Line 2b Line 4 checkbox Line 8b Lines 11 through 23, columns (a), (b), and (f) Lines 24 and 25 The following lines on Form 8962, Page 2 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Lines 30 through 33, columns (a) through (g) There are no T-Compute Lines Lines 35 and 36, columns (a) through (d) For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 5695 (Sequence 75) - Residential Energy Credits

3.21.3.70 (10-29-2025) Form 5695 (Sequence 75) - Residential Energy Credits For TY23 and later, the following lines on the Form 5695 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Lines 1 - 4 Line 16 Checkbox Line 5a Line 19f Line 5b Line 20c Checkbox Line 7a Line 22c Checkbox Line 7c Line 23c Line 8 Line 24c Left of Line 10 Line 12 Line 16 Checkbox Lines 17a - 17c Line 18a Lines 19a and- 19b Line 19d(i) and 19d(ii) Line 19f Line 20a(i) - 20a(iv) Line 20c Checkbox Lines 21a - 21b Line 22a Line 22c Line 23a(i) and 23a(ii) Line 23c Line 24a Line 25a Checkbox Line 26a Lines 26b and 25c Lines 25d(i) and 25d(ii) Checkbox Line 26a Line 26b Lines 29a - 29f including QMID boxes Checkbox Lines 32a and 32b For TY22 and prior, "X" Form 5695.

# Form 5695, Line 10 - Kilowatt Capacity

3.21.3.70.1 (10-30-2024) Form 5695, Line 10 - Kilowatt Capacity Using the taxpayer entry in the decimal field to the left of line 10, edit to the left of line 10 an 8 - digit whole number comprised of the last 6 digits to the left of the decimal point followed by the first 2 digits to the right of the decimal point. See chart below. Note: If there are less than 6 digits to the left of the decimal point or less than 2 digits to the right of the decimal point, add enough leading and/or trailing zeros to meet the 8 - digit requirement. Kilowatt Capacity Entered as Decimal Kilowatt Capacity Edited as a Whole Number 123 00012300 222.33 00022233 333.987654321987 00033398 .7 00000070 .987654321987 00000098 1234567890 56789000 First 6 digits closest to the left of the decimal and first 2 digits to the right of the decimal 1234567890.987654321987 56789098 First 6 digits closest to the left of the decimal and first 2 digits to the right of the decimal

# Form 965-A (Sequence 76) - Individual Report of Net 965 Tax Liability

3.21.3.71 (04-24-2020) Form 965-A (Sequence 76) - Individual Report of Net 965 Tax Liability The following lines on Form 965-A are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Part I, column a (first 5 lines) There are no T-Compute Lines Part I Additional Data Indicator, edited in margin to the right of Part I, line 1, column e Part I, column j (first 5 lines) Part I, column k (first 5 lines) Part IV, column f (first 5 lines) Part IV Additional Data Indicator, edited in margin to the right of Part IV, line 1, column i Total Line, Page 3 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 9000 (Sequence 77) - Alternative Media Preference

3.21.3.72 (11-12-2021) Form 9000 (Sequence 77) - Alternative Media Preference The following lines on Form 9000 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 1 There are no T-Compute Lines Taxpayer Indicator, edited in right margin by SSN For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule LEP (Sequence 77A) - Request for Change in Language Preference

3.21.3.73 (11-12-2021) Schedule LEP (Sequence 77A) - Request for Change in Language Preference The following lines on Schedule LEP are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 1 There are no T-Compute Lines Taxpayer Indicator, edited in right margin by SSN For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8997 (Sequence 78) - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments

3.21.3.74 (11-12-2021) Form 8997 (Sequence 78) - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments The following lines on Form 8997 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Part I, 1st line, columns (a), (b), (d), (e), and (f) Part I, line 2, columns (e) and (f) Part I Additional Info Indicator - Part I, margin to right of column (f) Part II, line 2, columns (e) and (f) Part I, line 2, columns (e) and (f) Part III, line 2, columns (e) and (f) Part II, 1st line, columns (a), (b), (d), (e), and (f) Part IV, line 2, columns (e) and (f) Part II Additional Info Indicator - Part II, margin to right of column (f) Part II, line 2, columns (e) and (f) Part III, 1st line, columns (a), (b), (d), (e), and (f) Part III Additional Info Indicator - Part III, margin to right of column (f) Part III, line 2, columns (e) and (f) Part IV, 1st line, columns (a), (b), (d), (e), and (f) Part IV Additional Info Indicator - Part IV, margin to right of column (f) Part IV, line 2, columns (e) and (f) For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 4136 (Sequence 79) - Credit for Federal Tax Paid on Fuels

3.21.3.75 (10-29-2025) Form 4136 (Sequence 79) - Credit for Federal Tax Paid on Fuels The following lines on Form 4136 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Lines 1 through 8, 11, 13 - 16 column (e) There are no T-Compute lines. For TY22 and prior, renumber the Sequence Code to "79" in the upper-right margin. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# American Samoa - Overview

3.21.3.76 (01-01-2017) American Samoa - Overview American Samoa (AS) has its own separate and independent income tax system. Bona fide residents of American Samoa are generally exempt from United States tax on their American Samoa source income. United States Armed Forces: Bona fide residents of American Samoa include military personnel whose official home of record is American Samoa.

# American Samoa (AS) - Filing Requirements Overview

3.21.3.76.1 (10-30-2024) American Samoa (AS) - Filing Requirements Overview Returns may be filed with both American Samoa and the United States depending on the source of income and the taxpayer's residency status. The income reported on each return depends on the taxpayer's residency status in American Samoa. If the taxpayer is a bona fide resident of AS and a United States citizen, resident, or nonresident alien during the entire year, they may need to file two returns: An AS tax return. A U.S. tax return reporting gross worldwide income (income from all sources and includes foreign and U.S. income) except income from sources within American Samoa (IRC 931). Form 4563 may be attached. A taxpayer does not have a United States income tax filing obligation if both are true: The taxpayer is a bona fide resident of American Samoa. The taxpayer only has income derived from sources in American Samoa. Exception: Income received for services performed as an employee of the United States government, including active-duty members of the U.S. Armed Forces whose State of Legal Residence is American Samoa or any of its agencies cannot be excluded from the United States tax return. If the United States government wages are reported on both the United States and AS tax returns, Form 1116 can be attached to the United States tax return to claim a credit for the taxes paid to AS. If the taxpayer is not a bona fide resident of AS during the entire tax year and they are a United States citizen or resident alien, they may need to file two returns: An AS tax return. A U.S. tax return to report income from worldwide sources. Form 1116 can be used to claim a credit for income paid to American Samoa on American Samoa source income subject to double taxation for income taxes paid. Exception: Nonresident aliens report only U.S. source and U.S. effectively connected income. If the taxpayer is not a bona fide resident of AS during the entire tax year and they are a nonresident alien, they may need to file two returns: An AS tax return. A U.S. tax return reporting income from U.S. sources.

# Processing Form 1040 With Income or Address From American Samoa

3.21.3.76.1.1 (01-01-2021) Processing Form 1040 With Income or Address From American Samoa If the only source of income is from a Form W-2AS AND there is an indication that the taxpayer is a bona fide resident: Correspond by preparing Form 3696-A to initiate Letter 86C, which informs the taxpayer that their return has been transshipped to the Tax Division Government of American Samoa for processing. Exception: Do not prepare Form 3696-A for photocopied returns with a U.S. Territory received date. Attach Form 3696-A and Form 4227 to the tax return and route it to Rejects. Rejects will issue Letter 86C and transship the tax return to: American Samoa Tax Office Executive Office Building First Floor Pago Pago, AS 96799 Note: For numbered returns, edit Action Code "640" , attach Form 4227, and notate "transship to American Samoa for processing" . If there is no indication that the taxpayer is a bona fide resident of American Samoa, continue processing the return. Taxpayers who reside outside the 50 U.S. states and the District of Columbia generally are not entitled to claim EIC. If the taxpayer is not claiming EIC, edit RPC "B" . If the taxpayer is claiming EIC, see IRM 3.21.3.15.1.31. Caution: If the taxpayer is not a bona fide resident of any U.S. territory and is U.S. military personnel, the taxpayer is considered a resident of the U.S. for the entire year and may be able to claim EIC. "X" any amount claimed for Additional Child Tax Credit (ACTC) on line 28, unless you can determine the taxpayer is U.S. military personnel. See IRM 3.21.3.15.1.32. If the taxpayer is claiming withholding from American Samoa, see IRM 3.21.3.15.1.29. The taxpayer may claim excess Social Security and RRTA taxes withheld. Verify the withholding. Note: Consider all Forms W-2 submitted when verifying the withholding. For additional information on bona fide residence rules, military personnel, and military spouses, see IRM 3.21.3.3.6.

# Form 1040 With Form 4563 - Exclusion of Income For Bona Fide Residents of American Samoa Under IRC 931

3.21.3.76.1.2 (10-30-2024) Form 1040 With Form 4563 - Exclusion of Income For Bona Fide Residents of American Samoa Under IRC 931 Form 4563 is not transcribed. Do not perfect Form 4563. For TY18 and prior, "X" Form 4563 when it is attached. Form 4563 is used to figure the amount of income from sources within American Samoa that may be excluded in accordance with IRC 931 from gross income on Form 1040. This exclusion may be claimed if a taxpayer is a bona fide resident of American Samoa. Eligible taxpayers will file Form 1040 and: Attach Form 4563, and Report worldwide income (income from all sources and includes foreign and U.S. income). Income that can be excluded in accordance with IRC 931: Income received from sources in American Samoa, and Income effectively connected with the conduct of a trade or business in American Samoa. If wages and salaries paid by the U.S. government or any of its agencies was excluded under IRC 931: "X" the exclusion, and Include the income on the appropriate income line. Exception: Active-duty members of the U.S. Armed Forces whose Legal State of Residence is American Samoa are subject to the tax rules for U.S. government employee wages. If the taxpayer claims the exclusion in accordance with IRC 931, the following are examples of deductions and credits that will be limited on Form 1040: The standard deduction Certain itemized deductions such as medical and dental expenses, gifts to charity, and real estate taxes and mortgage interest on personal residence If taxpayer reports only U.S. income and attaches a copy of the territory's return indicating that territory income was reported to the territory government, correspond for Form 4563 to exclude the income under IRC 931 or Form 1116 to claim a foreign tax credit on the U.S. return. If a taxpayer claiming an exclusion on Form 4563 has also claimed EIC, take the following actions: "X" Schedule EIC, "X" Form 1040, line 27a, and Edit RPC "B" .

# Processing Procedures When Form 4563 is Attached or IRC 931 Exclusion is Claimed

3.21.3.76.1.3 (01-01-2021) Processing Procedures When Form 4563 is Attached or IRC 931 Exclusion is Claimed If the taxpayer is claiming the exclusion under IRC 931, Form 4563 must be attached: If And Then Form 4563is attached The income and/or exclusion is not reported anywhere on Form 1040 Edit a "1" on Form 3471-E, line 8. Form 4563is attached, Income and/or exclusion is reported and/or excluded Edit a "1" on Form 3471-E, line 8 (see Figure 3.21.3-22), "X" the IRC 931 entries on Form 1040 and/or Schedule 1, and If the deleted entries were the only entries, edit RPC "L" and CCC "B" . Form 4563is not attached, The taxpayer claims the exclusion under IRC 931 Correspond for Form 4563. Figure 3.21.3-22 This figure contains five graphics. The first graphic represents Form 1040 (page 1) with the entity section completed showing a joint filing:The primary taxpayer's name is Lee Laloafu.The primary TIN is 000-00-4836.The secondary taxpayer's name is Pattie Laloafu.The TIN is 000-00-3846.The street address is P.O. Box 8665.The city field says Pago Pago, American Samoa. American Samoa is circled in red.In the state field, the letters AS is edited in red as the valid abbreviation of American Samoa.The ZIP code is 96799.In the blank space to the right of Head of household (HOH) in the Filing Status area, CCC B is edited in red.A red X is edited to the left of the Form 1040, lines 1a and 1z amounts of 41715.A red X is edited to the left of the Form 1040, line 8 amount of <41715>.The amounts on lines 1a, 1z, and 8 were X-ed because the taxpayer's income was exempt due to the exclusion from the filing of Form 4563.To the lower-left margin, edited in red, are the block letters B and L, placed horizontally. The B is an RPC (Return Processing Code) which indicates that the taxpayers are not eligible for EIC (Earned Income Credit) because they reside in a U.S. territory. The L is for a blank return as all of the line entries were X'd.The second graphic represents page 2 of Form 1040, which is blank.The third graphic shows Schedule 1, Form 1040, lines 8z, 9 (total other income), and 10 each with a negative entry of 41715 (in brackets) with a red X over the entire Schedule 1, Form 1040 since there are no T-lines left. Exempt 931 was entered by the taxpayer to the left of line 8z.The fourth graphic shows Form 4563. The taxpayer's name is Lee Laloafu. The TIN is 000-00-4836. Line 7 and line 15 both show the amount of 41715 (the same amount that the taxpayer is excluding).The fifth graphic is Form 3471-E.Sequence number 02 is lined through and edited to 88 in red. A red 1 edited on line 8 (Form 4563 Indicator), since Form 4563 is attached to Form 1040.. Please click here for the text description of the image.

# Guam - Overview

3.21.3.77 (01-01-2021) Guam - Overview The Guam system of income taxation is based on the income tax laws of the United States. Guam has its own tax system based on the same tax laws and tax rates that apply to the United States. Individuals with income from Guam will only file one return, either with Guam or the IRS, unless the taxpayer is a nonresident alien and not a bona fide resident of Guam. See IRM 3.21.3.77.1 for filing requirements. Members of the U.S. Armed Forces who: Qualify as a bona fide resident of Guam in a prior tax year, and are absent from Guam solely in compliance with military orders, must file with Guam. Did not qualify as a bona fide resident of Guam in a prior tax year, and are present in Guam solely in compliance with military orders, must file with the IRS.

# Guam - Filing Requirements Overview

3.21.3.77.1 (01-01-2021) Guam - Filing Requirements Overview If the taxpayer is a United States citizen, resident alien, or nonresident alien and is a bona fide resident of Guam during the entire tax year, they must file their income tax return with Guam. If the taxpayer is a United States citizen, or resident alien and is not a bona fide resident of Guam during the entire tax year, they must file their income tax return with the IRS. The tax return will include: Form 1040, reporting income from worldwide sources All income tax withheld by either the United States or Guam Any credit for overpayment of income tax to either the United States or Guam Any payments of estimated tax to either the United States or Guam Payment of any balance of tax due Form 5074, if the adjusted gross income is $50,000 or more for the tax year and gross income of $5,000 or more is from sources within Guam Exception: Military employees do not require a Form 5074. If the taxpayer is a nonresident alien of the United States and is not a bona fide resident of Guam during the entire tax year, they must: File a Guam income tax return reporting only their Guam source income Note: In this situation, Guam source income is any income received for services performed in Guam, even if they were paid by the U.S. government. File a Form 1040-NR, reporting U.S. source income

# Processing Form 1040 with Address or Income from Guam

3.21.3.77.1.1 (10-29-2025) Processing Form 1040 with Address or Income from Guam If there is an indication that the taxpayer is a bona fide resident of Guam: Correspond using Form 3696-A to initiate Letter 86C, which informs the taxpayer that their return has been transshipped to the Department of Revenue and Taxation, Government of Guam for processing. Exception: Do not prepare Form 3696-A for photocopied returns with a U.S. Territory received date. Attach Form 3696-A and Form 4227 to the tax return, and route it to Rejects. Rejects will issue Letter 86C and transship the tax return to: Department of Revenue and Taxation Taxpayer Services Division P.O. Box 23607 Barrigada, GU 96921 Note: For a numbered return, edit Action Code "640," attach Form 4227, and notate "transship return to the Department of Revenue and Taxation, Government of Guam." If there is no indication that the taxpayer is a bona fide resident of Guam ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, continue processing the return. Taxpayers who reside outside the 50 U.S. states and the District of Columbia generally are not entitled to claim EIC. If the taxpayer is not claiming EIC, edit RPC "B" . If the taxpayer is claiming EIC, see IRM 3.21.3.15.1.31. Caution: If the taxpayer is not a bona fide resident of any U.S. territory and is U.S. military personnel, the taxpayer is considered a resident of the U.S. for the entire year and may be able to claim the EIC. "X" any amount claimed for Additional Child Tax Credit (ACTC) on line 28, unless you can determine the taxpayer is a U.S. military personnel. See IRM 3.21.3.15.1.32. If the taxpayer files Form 1040 Guam Individual Income Tax Return, send the return to the Department of Revenue and Taxation. See instructions in IRM 3.21.3.77.1.1 (1). If the taxpayer is claiming withholding from Guam, allow the withholding. The taxpayer may claim excess Social Security and RRTA taxes withheld. Verify the withholding. Note: Consider all Forms W-2 submitted when verifying the withholding. For additional information on bona fide residence rules, military personnel, and military spouses, see IRM 3.21.3.3.6.

# Processing Form 1040 with Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI)

3.21.3.77.1.2 (01-01-2021) Processing Form 1040 with Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI) Form 5074 provides information to the U.S. so that the IRS can figure the individual income tax that is due to Guam or the CNMI. Form 5074 is required when both are true: A U.S. citizen or resident alien reports adjusted gross income of $50,000 or more, and $5,000 or more of the gross income is derived from Guam or CNMI sources If Form 5074 is required but not attached, route to the workleader. The workleader will: Make one (1) copy of the entire return, including Forms W-2, Route the copy to Exam, and Return the original to the tax examiner to be processed. When Form 5074 is attached to Form 1040, edit Audit Code "L" .

# Commonwealth of the Northern Mariana Islands - Overview

3.21.3.78 (01-01-2024) Commonwealth of the Northern Mariana Islands - Overview The Commonwealth of the Northern Mariana Islands (CNMI) system of income taxation is based on the income tax laws of the United States. The CNMI has its own tax system based on the same tax laws and tax rates that apply to the United States. Individuals with income from the CNMI will file only one return, either with the CNMI or IRS, unless the taxpayer is a nonresident alien and not a bona fide resident of CNMI. The taxpayer's residency status under IRC 937(a) with respect to the CNMI determines which return they must file. Bona fide residents with worldwide income (income from all sources and includes foreign and U.S. income) - If properly filed with CNMI, a taxpayer will not file a return with the U.S. Not bona fide residents with worldwide income - Taxpayer should claim withholding from the U.S. or CNMI on the corresponding U.S. or CNMI tax return. Taxpayers that reside in the CNMI cannot claim the Earned Income Credit, except in limited circumstances. Members of the U.S. Armed Forces who: Qualify as a bona fide resident of the CNMI in a prior tax year, and are absent from the CNMI solely in compliance with military orders must file with CNMI. Did not qualify as a bona fide resident of the CNMI in a prior tax year, and are present in the CNMI solely in compliance with military orders will not qualify as a bona fide resident in the current tax year and must file with the IRS. For additional information on bona fide residence rules, military personnel, and military spouses, see IRM 3.21.3.3.6.

# CNMI - Filing Requirements Overview

3.21.3.78.1 (01-01-2021) CNMI - Filing Requirements Overview If the taxpayer is a United States citizen, resident alien, or nonresident alien and is a bona fide resident of the CNMI during the entire tax year, they must file their income tax return with the CNMI. If the taxpayer is a United States citizen or resident alien, and is not a bona fide resident of CNMI during the entire tax year, they must file their income tax return with the IRS. The tax return will include: Form 1040, reporting income from worldwide sources All income tax withheld by either the United States or CNMI Any credit for overpayment of income tax to either the United States or CNMI Any payments of estimated tax to either the United States or CNMI Payment of any balance of tax due Form 5074, if the adjusted gross income is $50,000 or more for the tax year and gross income of $5,000 or more is from sources within CNMI Exception: Military employees do not require a Form 5074. If the taxpayer is a nonresident alien of the United States and is not a bona fide resident of CNMI during the entire tax year, they must: File a CNMI income tax return reporting only their CNMI source income, and Note: In this situation, CNMI source income is any income received for services performed in CNMI, even if they were paid by the U.S. government. File a Form 1040-NR reporting U.S. source income.

# Processing Form 1040 with Address or Income from Commonwealth of the Northern Mariana Islands (CNMI)

3.21.3.78.1.1 (10-29-2025) Processing Form 1040 with Address or Income from Commonwealth of the Northern Mariana Islands (CNMI) If the only source of income is from a Form W-2CM AND there is an indication that the taxpayer is a bona fide resident of CNMI: Correspond using Form 3696-A to initiate Letter 86C, which informs the taxpayer that their return has been transshipped to the Division of Revenue and Taxation of CNMI for processing. Exception: Do not prepare Form 3696-A for photocopied returns with a U.S. Territory received date. Attach Form 3696-A and Form 4227 to the tax return and route it to Rejects. Rejects will issue Letter 86C and transship the tax return to: Commonwealth of the Northern Mariana Islands Division of Revenue and Taxation P.O. Box 5234, CHRB Saipan, MP 96950 Note: For a numbered return, edit Action Code "640," attach Form 4227, and notate "transship return to the Division of Revenue and Taxation of CNMI." If there is no indication that the taxpayer is a bona fide resident of CNMI, continue processing the return. Taxpayers who reside outside the 50 U.S. states and the District of Columbia generally are not entitled to claim EIC. If the taxpayer is not claiming EIC, edit RPC "B" . If the taxpayer is claiming EIC, see IRM 3.21.3.15.1.31. Caution: If the taxpayer is not a bona fide resident of any U.S. territory and is a U.S. military personnel, the taxpayer is considered a resident of the U.S. for the entire year and may be able to claim the EIC. "X" any amount claimed for Additional Child Tax Credit (ACTC) on line 28, unless you can determine the taxpayer is a U.S. military personnel. See IRM 3.21.3.15.1.32. If the taxpayer is claiming withholding from CNMI, allow the withholding. The taxpayer may claim excess Social Security and RRTA taxes withheld. Verify the withholding. Note: Consider all Forms W-2 submitted when verifying the withholding.

# Processing Form 1040 with Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI)

3.21.3.78.1.2 (01-01-2021) Processing Form 1040 with Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI) Form 5074 provides information to the U.S. so that the IRS can figure the individual income tax that is due to Guam or the CNMI. Form 5074 is required when both are true: A U.S. citizen or resident alien reports adjusted gross income of $50,000 or more. $5,000 or more of the gross income is derived from Guam or CNMI sources. If Form 5074 is required but not attached, route to the workleader. The workleader will: Make one (1) copy of the entire return, including Forms W-2, Route the copy to Exam, and Return the original to the tax examiner to be processed. When Form 5074 is attached to Form 1040, edit Audit Code "L."

# United States Virgin Islands (USVI) - Overview

3.21.3.79 (01-01-2021) United States Virgin Islands (USVI) - Overview The USVI system of income taxation is based on the income tax laws of the United States. In general, a bona fide resident of the USVI files an income tax return with the USVI and not with the IRS. A United States citizen or resident alien who is not a bona fide resident of the USVI, but has USVI source income, will file an income tax return with the IRS and an identical copy of the U.S. return with the USVI.

# United States Virgin Islands - Filing Requirements Overview

3.21.3.79.1 (01-01-2024) United States Virgin Islands - Filing Requirements Overview In general, bona fide residents of the USVI pay taxes only to the USVI. U.S. citizens or resident aliens (but not bona fide residents of the USVI) with USVI source income pay a portion of tax to each jurisdiction. Bona fide residents include worldwide income (income from all sources and includes foreign and U.S. income) on the USVI return and generally do not file a return with the United States unless using Form 1040-SS to report effectively connected net business income of $400 or more from a trade or business in USVI. Not bona fide residents with worldwide income file identical returns with the United States and the USVI, and the U.S. Form 8689 must be attached to both returns. For taxable years ending on or after December 31, 2006, all United States citizens, resident aliens, and nonresident aliens who are bona fide residents of the USVI must file with the USVI and report worldwide income. For taxable years ending before December 31, 2006, if the taxpayer is a United States citizen, resident alien, or nonresident alien and a bona fide resident of the USVI during the entire tax year, and their gross income is $75,000 or more, the taxpayer must file with: The USVI and report worldwide income and The IRS, in order to start the U.S. statute of limitations on assessment, as described in Notice 2007-19. Note: The tax return filed with the IRS will include taxpayer's name, address, Taxpayer Identification Number (TIN), and signature. If the taxpayer is a United States citizen or resident alien and not a bona fide resident of the USVI during the entire tax year, the taxpayer must file identical tax returns with the IRS and the USVI if the taxpayer has: Income from sources in the USVI or Income effectively connected with the conduct of a trade or business in the USVI. Note: The taxpayer will complete and attach Form 8689 to both returns to determine how much tax to pay to the U.S. and to the U.S. Virgin Islands. If the taxpayer is a nonresident alien of the United States and not a bona fide resident of the USVI during the entire tax year, they must file: A return with the USVI, reporting income from sources in the USVI and A Form 1040-NR reporting U.S. source income. For a VI Cover Over return found in a batch of regular returns: If a return has a "U.S. Claim" stamp in the top margin of the return, take it to the work leader. Work leader will contact P&A for instructions.

# Processing Form 1040 with Address or Income from United States Virgin Islands

3.21.3.79.1.1 (01-14-2025) Processing Form 1040 with Address or Income from United States Virgin Islands If there is an indication that the taxpayer is a bona fide resident of USVI ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the only source of income is from a Form W-2VI: Correspond using Form 3696-A to initiate Letter 86C, which informs the taxpayer that their return has been transshipped to the Virgin Islands Bureau of Internal Revenue for processing. Exception: Do not prepare Form 3696-A for photocopied returns with a U.S. Territory received date. Attach Form 3696-A and Form 4227 to the tax return and route it to Rejects. Rejects will issue Letter 86C and transship the tax return to: Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. Thomas, VI 00802 Note: For a numbered return, edit Action Code "640" , attach Form 4227, and notate "transship to the Virgin Islands for processing." If there is no indication that a taxpayer is a bona fide resident of the USVI, continue processing the return. Taxpayers who reside outside the 50 U.S. states and the District of Columbia are not entitled to claim EIC. If the taxpayer is not claiming EIC, edit RPC "B" . If the taxpayer is claiming EIC, see IRM 3.21.3.15.1.31. Caution: If the taxpayer is not a bona fide resident of any U.S. territory and is U.S. military personnel, the taxpayer is considered a resident of the U.S. for the entire year and may be able to claim the EIC. "X" any amount claimed for Additional Child Tax Credit (ACTC) on line 28, unless you can determine the taxpayer is a U.S. military personnel. See IRM 3.21.3.15.1.32. If the taxpayer is claiming withholding from Virgin Islands, see IRM 3.21.3.15.1.29. The taxpayer may claim excess Social Security and RRTA taxes withheld. Verify the withholding. Note: Consider all Forms W-2 submitted when verifying the withholding.

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

3.21.3.79.1.2 (02-10-2025) Form 8689 - Allocation of Individual Income Tax to the Virgin Islands Form 8689 is used to figure the amount of U.S. tax allocable to the USVI. Caution: If Form 8689 is attached or there is an indication on Schedule 3, line 13z or on the dotted portion of line 33, Form 1040 that the taxpayer is either reporting taxes paid to the USVI or filing in compliance with Notice 2007-19 (zero return, taxpayer's name, address, TIN, and signature), do not send these returns to the USVI. See IRM 3.21.3.79.2. Taxes paid to the USVI may be claimed as a credit on Schedule 3, line 13z or on the dotted portion of Form 1040, line 33 by completing and attaching Form 8689. If the amount edited to the dotted portion of Form 1040, line 33 or included in the total on Schedule 3, line 14 is greater than the tax on Form 1040, line 24, adjust the credit to equal the tax amount on Form 1040, line 24. Ensure the credit amount claimed or edited on the dotted portion of Form 1040, line 33 or included in the total of Schedule 3, line 14 has been included in the total of Form 1040, line 33 or Schedule 3, line 14, respectively. If Form 8689 is not attached and the taxpayer notated Form 8689 on Schedule 3, line 13z or on the dotted portion of Form 1040, line 33 and/or is claiming a credit on the dotted portion of Form 1040, line 33 or Schedule 3, line 13z or 14, then correspond for Form 8689 when the amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

# Processing Form 1040 in Compliance with Notice 2007-19

3.21.3.79.1.3 (01-01-2021) Processing Form 1040 in Compliance with Notice 2007-19 Review the return for indications the taxpayer is filing in compliance with Notice 2007-19, including: Notation on the return Notice 2007-19 Zero tax return (no dollar entries) Affirmation statement indicating filed a USVI Form 1040 Statement of gross income of $75,000 or more Statement affirming the taxpayer's bona fide residency in the USVI along with a summary of facts on which the residency is based If an indication is found, the return must be hand carried from function to function. "X" all entries except: Caption Information, Computer Condition Code (CCC), Return Processing Code (RPC), and Received Date Exception: If the return includes both Notice 2007-19 and Form 8689, process as Form 1040 with Form 8689. See IRM 3.21.3.79.1.

# Processing Form 1040 in Compliance with Notice 2007-31

3.21.3.79.1.4 (01-01-2021) Processing Form 1040 in Compliance with Notice 2007-31 The USVI Bureau Internal Revenue (BIR) will send to the IRS copies of the taxpayers' returns for 2006 and later when the taxpayer files a return with the USVI BIR and they meet each of the following conditions: Bona fide resident of USVI and Gross income of $75,000 or more The return will be only page 1 of Form 1040 and include a watermark "Filed due to VI Notice 2007-31" in the upper-left corner of page 1 Form 1040. These returns must be hand carried from function to function. "X" all entries except: Caption Information RPC "L" CCC "B" RPC "V" Received Date Note: These are the only valid codes for returns filed under Notice 2007-31. Reminder: For Virgin Islands filed for Cover Over for Notice 2007-31 as Form 1040-A (2017 and prior) or Form 1040-EZ (2017 and prior), circle the "A" or "EZ" as applicable in red. The return will then be processed as a prior year Form 1040.

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

3.21.3.79.2 (10-30-2024) Processing U.S. Virgin Islands (VI) Cover-Over Program Form 1040 The Virgin Islands Bureau of Internal Revenue (BIR) sends Form 1040 and Form 1040-A (TY17 and prior) tax returns to the IRS that require special handling and editing, also known as the Cover-Over Program. The returns will be hand carried by the Planning and Analysis staff to each function. After the returns are edited, the Planning and Analysis staff must be notified so the returns can be hand carried to the next function. Use the procedures below to edit these returns. Delete all dependent entries. For TY17 and prior, also delete all exemption entries. Edit the following information and lines following line by line instructions: Caption Information CCCs, RPCs, and SPC Received Date Edit only the Caption Information of the return. If a U.S. address is in the caption area, it must be circled out. Always edit CCCs: "3" (MUST BE EDITED FIRST) "B" "O" Note: These are the only valid codes for returns filed with a U.S. Claim stamp in the top margin of the return. Ensure the received date stamped by the USVI BIR is legible. Note: Always use the USVI Received Date. If the received date stamped by the USVI is illegible, use the signature date. Edit RPCs: "B" "K" (Statute Years Only) Reminder: Do not send these returns to Statute. "L" Note: These are the only valid codes for returns filed with a U.S. Claim stamp in the top margin of the return. Edit SPC "B" . Note: This is the only valid code for returns filed with a U.S. Claim stamp in the top margin of the return. "X" all entries except: Caption information CCCs, RPCs, and SPC Received Date

# Puerto Rico - Overview

3.21.3.80 (01-01-2020) Puerto Rico - Overview The Commonwealth of Puerto Rico has an independent income tax system. Generally the taxpayer will file returns with both Puerto Rico and the IRS. The income reported on each return depends on the taxpayer's residency status in Puerto Rico.

# Puerto Rico (PR) - Filing Requirements Overview

3.21.3.80.1 (10-30-2024) Puerto Rico (PR) - Filing Requirements Overview Generally, returns will be filed with both Puerto Rico and the United States. The income reported on each return depends on the taxpayer's residency status in Puerto Rico. If the taxpayer is a bona fide resident of Puerto Rico during the entire tax year and is a United States citizen or resident alien, they generally must: File a Puerto Rico tax return. If the taxpayer has income from sources other than Puerto Rico, they also file a United States tax return to report income from worldwide sources, but exclude Puerto Rico source income under IRC 933. The taxpayer will not be allowed any deductions or credits that are directly or indirectly allocable to exempt income. Exception: Income received for services performed as an employee of the United States government, including active-duty members of the U.S. Armed Forces whose State of Legal Residence is Puerto Rico, or any of its agencies cannot be excluded from the IRS tax return. If United States government wages are reported on both the IRS and Puerto Rico tax returns, Form 1116 can be attached to the IRS tax return to claim a credit for income taxes paid to Puerto Rico. Note: U.S. government cost of living allowances are excludable from U.S. income tax. If the taxpayer does NOT have any income other than PR source income, they are ONLY required to file a Puerto Rico return unless using Form 1040-SS to report effectively connected net business income of $400 or more from a trade or business in Puerto Rico. If the taxpayer is a bona fide resident of Puerto Rico during the entire tax year and is a nonresident alien of the United States, they generally must: File a Puerto Rico tax return. If the taxpayer has income from sources other than Puerto Rico, they also file a United States tax return to report income from worldwide sources, but exclude Puerto Rico source income under IRC 933. The taxpayer will not be allowed the standard deduction, cannot file a joint return, and is not allowed deductions for dependents unless the person is a citizen or national of the United States, a resident of the United States, or a resident of a country contiguous to the United States. Exception: Income received for services performed as an employee of the United States government or any of its agencies cannot be excluded from the IRS tax return. If United States government wages are reported on both the IRS and Puerto Rico tax returns, Form 1116 can be attached to the IRS tax return to claim a credit for income taxes paid to Puerto Rico. If the taxpayer is not a bona fide resident of Puerto Rico during the entire tax year and is a United States citizen or resident alien, they generally must: File a Puerto Rico tax return. File a United States tax return to report income from worldwide sources. Form 1116 can be attached to claim credit for income taxes paid to Puerto Rico or Puerto Rico source income subject to double taxation. If the taxpayer is not a bona fide resident of Puerto Rico during the entire tax year and is a nonresident alien of the United States, they generally must: File a Puerto Rico tax return. File a United States tax return, Form 1040-NR, according to the rules for a nonresident alien, reporting only U.S. source and U.S. effectively connected income.

# Processing Form 1040 with Address or Income from Puerto Rico

3.21.3.80.1.1 (01-01-2024) Processing Form 1040 with Address or Income from Puerto Rico If the taxpayer appears to be a bona fide resident of Puerto Rico ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, has only Puerto Rico source income (e.g., Form(s) 499R-2/W-2PR), is not reporting self-employment tax, and is not claiming the additional child tax credit, do the following: Prepare Form 9143 to mail the return back to the taxpayer, and Use the following fill-in: Since you appear to be a bona fide resident of PR with only PR income, you do not have a U.S. tax filing obligation. If you have not already done so, you should file a return with the Departamento de Hacienda, PO Box 9022501, San Juan, PR 00902-2501. If you wish to file a US return to claim the Additional Child Tax Credit, you must do so on a Form 1040-PR or Form 1040-SS. Note: For a numbered return, edit Action Code "640," attach Form 4227, and notate "send to taxpayer." Exception: If the taxpayer is claiming excess Social Security and/or RRTA taxes, process the return. If the taxpayer appears to be a bona fide resident of Puerto Rico ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, has only Puerto Rico source income (e.g., Form(s) 499R-2/W-2PR), and appears to be filing only to claim the additional child tax credit, do the following: Prepare Form 9143 to mail the return back to the taxpayer, and Use the following fill-in: Si usted radica una planilla de contribucion de los Estados Unidos, para reclamar el credito tributario adicional por hijos, a usted se le requiere completar el Formulario 1040-SS. Consulte la Publicacion 570. If the taxpayer appears to be a bona fide resident of Puerto Rico ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, but is filing a Form 1040 to report non-Puerto Rico source income, continue processing the Form 1040. If there is no indication that the taxpayer is a bona fide resident of Puerto Rico, continue processing the return. If the taxpayer is claiming withholding from Puerto Rico, see IRM 3.21.3.15.1.29. Taxpayers who reside outside the 50 U.S. states and the District of Columbia generally are not entitled to claim EIC. If the taxpayer is not claiming EIC, edit RPC "B" . If the taxpayer is claiming EIC, see IRM 3.21.3.15.1.31. The taxpayer may claim excess Social Security and/or RRTA taxes withheld. Verify the withholding. Note: Consider all Forms W-2 submitted when verifying the withholding. For additional information on bona fide residency rules, military personnel, and military spouses, see IRM 3.21.3.3.6.

# Processing Procedures for Excluding income - IRC 933

3.21.3.80.2 (10-29-2025) Processing Procedures for Excluding income - IRC 933 Individuals that are considered bona fide residents of Puerto Rico during the entire tax year should exclude income derived from sources within Puerto Rico under IRC 933. However, if a bona fide resident of Puerto Rico received income from sources outside Puerto Rico during the tax year, then they generally must also file a return with the IRS reporting their worldwide gross income but excluding Puerto Rico source income. They may claim a Foreign Tax Credit on their U.S. income tax return using Form 1116 for taxes paid to Puerto Rico. Wages and salaries paid by the U.S. government are subject to U.S. federal income tax. This income does not qualify for the exclusion under IRC 933; therefore, these taxpayers may also be required to file an income tax return with the IRS. These returns may claim the foreign tax credit to avoid double taxation. If the exclusion is claimed, "X" where found. Edit the income to Form 1040, line 1a, if not already included. Exception: Active-duty members of the U.S. Armed Forces whose Legal State of Residence is Puerto Rico are subject to the tax rules for U.S. government employee wages. If the taxpayer is prorating their itemized deductions (Schedule A) under IRC 933, accept the taxpayer's prorated amount for itemized deductions. When two amounts are present on Schedule A, line 17, "X" out the larger amount. Reminder: The taxpayer must indicate IRC 933 on the tax return to qualify for prorated itemized deductions. If the taxpayer qualifies under IRC 933 and does not itemize deductions, only the prorated amount of the standard deduction that is allocated to taxable income on Form 1040 is allowable. If the taxpayer has prorated their standard deduction, accept the taxpayer's figure. Reminder: The taxpayer must indicate IRC 933 on the tax return to qualify for prorated standard deductions. When the taxpayer resides in or is excluding income from Puerto Rico, or appears to be claiming IRC 933 exclusion, and is prorating the itemized or standard deduction, accept the taxpayers entry for taxable income. Do NOT correspond for missing Schedule A if the taxpayer is prorating. TY17 and prior: If the taxpayer is a bona fide resident of Puerto Rico, is exempting all income under IRC 933, and is claiming Additional Child Tax Credit on Form 1040-A, convert to Form 1040, and then "X" the income and exclusion where found. See IRM 3.21.3.15.1.32. If the taxpayer is a bona fide resident of PR and indicates income reported on any Schedule C or Schedule F is excluded under IRC 933, take the following actions for each of these schedules: "X" the schedule. Prepare a dummy schedule. For Schedule C, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ if furnished by the taxpayer. Do not compute line 3. See Figure 3.21.3-23. For Schedule F, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ if furnished by the taxpayer. If Schedule SE is present, accept the taxpayer's figures. If income excluded under IRC 933 is reported anywhere on the return, delete the income and exclusion where found, including from Form 1040, line 1z, if applicable. Do not adjust line 9 or 11. When the taxpayer claims income exempt under IRC 933 and claims EIC, disallow EIC. "X" both Form 1040, line 27a and Schedule EIC, if attached. If Form 1116 is attached and Schedule 3, line 1 is blank, edit the amount from Form 1116, line 35 to Schedule 3, line 1. If a Cost of Living Allowance (COLA) is reported as an adjustment on Form 1040 or Schedule 1, page 2 by a U.S. government employee, delete the amount. Figure 3.21.3-23 This figure contains 2 graphics. The first graphic is a Schedule C:The name is Adam Rosario.The TIN is 000-00-9583.The principal business listed in A is Construction.The principal business activity code (PBA) on B is 469811.The business address in E is 42 Calle Majada in San Juan, PR, 00936.Part I (Income) has 24000 on lines 1, 3, 5, and 7 (gross income).Part II (Expenses) has 3000 (car and truck expenses) on line 9.The upper-center margin of Schedule C contains the statement Income Exempt - Sec 933.When the Schedule C income is exempt due to Sec 933, the original schedule is deleted (the Schedule C shows a large red X covering the entire schedule) and a dummy schedule is prepared.The second graphic represents the prepared dummy Schedule C, which will replace the original schedule. The new Schedule C contains the taxpayer's TIN edited in red as 000-00-9583 and has the PBA edited on B in red as 469811. Line 1 (gross receipts) has a 1 edited in red. Please click here for the text description of the image.

# Taxpayers Who File Two Returns (Form 1040 with Form 1040-SS)

3.21.3.80.3 (01-01-2024) Taxpayers Who File Two Returns (Form 1040 with Form 1040-SS) In this specific subsection, references to Form 1040-SS are understood to apply to Form 1040-SS, Form 1040-SS (sp), and Form 1040-PR (TY22 and prior). Determine if the taxpayer is a bona fide resident of Puerto Rico by using the taxpayer's address and checking Form W-2 to determine if state wages were paid to Puerto Rico. If a taxpayer, who lives or lived in Puerto Rico (PR), files Form 1040-SS to report self-employment tax and also files Form 1040 to report worldwide income (income from all sources and includes foreign and U.S. income), use the table below to determine which form should be processed: If Then The taxpayer is a United States government employee Process Form 1040 and all applicable forms and schedules reporting their U.S. source income and self-employment tax on Schedule SE. "X" Form 1040-SS. The taxpayer is a bona fide resident of Puerto Rico with only PR source income Process Form 1040-SS reporting self-employment tax. "X" Form 1040. The taxpayer is a bona fide resident with U.S. source income or other income with a source outside of Puerto Rico Process the Form 1040. "X" Form 1040-SS. The taxpayer is not a bona fide resident of Puerto Rico with U.S. source income Process the Form 1040. "X" Form 1040-SS. The taxpayer is not a bona fide resident of Puerto Rico without U.S. source income Process the Form 1040. "X" Form 1040-SS. The taxpayer cites IRC 933 anywhere on the return or filed Form 8898, and taxpayer does not have any income source outside of Puerto Rico Treat as a bona fide resident of PR, and process the Form 1040-SS. "X" Form 1040. Reminder: Transfer all T-line amounts as appropriate per the form that is to be processed. Also, dummy any schedules as needed.

# Form 1040-SS and Form 1040-SS (sp) - General Instructions for TY23 and Later

3.21.3.81 (10-29-2025) Form 1040-SS and Form 1040-SS (sp) - General Instructions for TY23 and Later The instructions in this subsection apply to TY23 and laterForm 1040-SS and Form 1040-SS (sp). Line references in these instructions are to the current year line numbers, unless otherwise specified. Starting in TY23, Form 1040-PR is being renamed Form 1040-SS (sp). The Form 1040-SS will no longer have the Schedule C, Schedule F, and Schedule SE built into the form. Taxpayers will have to file the separate schedules if applicable to their filing. The Form 1040-SS is written in English, and the Form 1040-SS (sp) is written in Spanish. Besides the language, both are identical forms, and taxpayers who reside in the U.S. territories of American Samoa (AS), the Commonwealth of the Northern Mariana Islands (CNMI), Guam (GU), Puerto Rico (PR), and the U.S. Virgin Islands (USVI) can file either Form 1040-SS or Form 1040-SS (sp). Throughout this subsection, references to Form 1040-SS are understood to apply to both Form 1040-SS and Form 1040-SS (sp). Form 1040-SS is filed by residents of U.S. territories and is used to: report net earnings from self-employment and pay self-employment taxes, pay any household employment taxes, claim excess Social Security tax withheld, pay any employee Social Security and Medicare tax on unreported tips or uncollected employee Social Security and Medicare tax on tips or group-term insurance, and claim the additional child tax credit (only if qualified bona fide residents of Puerto Rico with at least 1 qualifying child). Page 1 of Form 1040-SS includes checkboxes that are not transcribed. These include: Filed pursuant to section 301.9100-2 checkbox at top of form Deceased checkbox and line Other checkbox When correspondence is required, use: Form 13557 for Form 1040-SS for missing signatures or other correspondence when the return is being sent back to the taxpayer. Form 13975 for Form 1040-SS for correspondence when the return is not being sent back to the taxpayer. If a taxpayer, who lives or lived in Puerto Rico (PR), files Form 1040-SS to report self-employment and also files Form 1040 to report worldwide income (income from all sources and includes foreign and U.S. income), see IRM 3.21.3.80.3. If the taxpayer files Form 1040-SS along with a U.S. Form W-2 showing U.S. income, correspond and request that they file Form 1040 to report their income. Return the Form 1040-SS to the taxpayer using Form 13557, paragraph 14. For the items listed below, refer to the general instructions: Received Dates, see IRM 3.21.3.8 Tax Period, see IRM 3.21.3.11 Taxpayer Identification Information, see IRM 3.21.3.12.2 Caption Information, see IRM 3.21.3.12.1 Address, see IRM 3.21.3.12.3.2 through IRM 3.21.3.12.6 P-TIN/S-TIN, see IRM 3.21.3.12.2.1 and IRM 3.21.3.12.2.2 Name Line and Additional Information Line, see IRM 3.21.3.12.3 through IRM 3.21.3.12.3.3 Route all Form 1040-SS to the workleader, when there is an indication it is a copy/copia, amended/enmendada, corrected/corregida, or electronically filed/radicado electronicamente, unless "no TC 150" is annotated. Route all Form 1040-SS to the workleader for TC 150 research before corresponding, when only page 1 is present and the return was received with remittance.

# Form 1040-SS - Transcription Lines

3.21.3.81.1 (10-29-2025) Form 1040-SS - Transcription Lines The following lines/areas on Form 1040-SS, Page 1 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Tax Period Primary TIN Secondary TIN Special Processing Code (SPC) - To the right of Spouse's SSN Primary Taxpayer Name Secondary Taxpayer Name Additional Information Line Street Address City, Town or Post Office/Commonwealth or Territory/ZIP Code Digital Assets Code - Page 1 below Foreign Postal Code line Computer Condition Code (CCC) - Part I line towards the center Filing Status Code - To the left of Line 1 Qualifying Child's Name Control - Line 2(b) Child's Social Security Number - Line 2(c) Checkmark for Child with Name/Identifying Number Dependent Relationship Code Received Date Line 3 Line 4 Line 6e Line 7 Form Processing Code (FPC) - Page 1 in the margin to the right of Line 7 Line 8 Line 9 Line 10 Line 11b Line 12 Return Processing Code (RPC) - Bottom-Left Margin Action Code - Bottom-Center Margin Audit Code - Bottom-Right Margin Line 6e Line 7 Line 12 The following lines on Form 1040-SS, Page 2 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 14a Line 14b - Routing Number Line 14c - Checking/Savings box Line 14d - Account Number Line 15 Line 16 Third Party Designee Checkbox Third Party Designee Name Third Party Designee PIN Primary IP PIN Secondary IP PIN Preparer SSN or PTIN Preparer Phone Number Preparer EIN Preparer Code E-File Waiver Code Line 14a Line 16 The following lines on Form 1040-SS, Page 3 are T-Lines and T-Compute Lines: T-Lines T-Compute Lines Line 3 Line 13f Line 13f

# Editing Part I and II of Form 1040-SS

3.21.3.81.2 (01-01-2024) Editing Part I and II of Form 1040-SS Follow line by line instructions.

# Editing Part I, Lines 1 - 16 (Total Tax and Credits)

3.21.3.81.3 (01-01-2024) Editing Part I, Lines 1 - 16 (Total Tax and Credits) The taxpayer uses this section to report Total Tax and Credits.

# Line 1 - Filing Status Code (FSC)

3.21.3.81.3.1 (01-01-2024) Line 1 - Filing Status Code (FSC) The Filing Status Code (FSC) must always be edited. Edit the FSC in the left margin beside the filing status (FS) area. See Figure 3.21.3-24. For TY23 and later, use the following table to edit the correct FSC when one filing status box is marked: FS Box Marked And Then Single Edit FSC "1" . Married filing jointly Two signatures are present Edit FSC "2" . Married filing jointly One signature is present Correspond for the spouse's missing signature. Married filing separately (MFS) Spouse's name is not included in the caption area Edit FSC "3" . Married filing separately (MFS) Spouse's name is included in the caption area, but only one signature is present Edit FSC "3" , and circle the spouse's name. Married filing separately (MFS) Spouse's name is not included in the caption area, but two signatures are present Edit FSC "3" . Married filing separately (MFS) Spouse's name is included in the caption area, and two signatures are present Edit FSC "2" . Head of household At least one qualifying child is present Edit FSC "4" . Head of household No qualifying children are present Edit FSC "1" . Qualifying surviving spouse No spousal date of death, or date of death was within the two years before the tax year of the return Edit FSC "5" . Qualifying surviving spouse Both of the following conditions are present: Spousal date of death was more than two years before the tax year of the return, AND No qualifying children are present Edit FSC "1" . Qualifying surviving spouse Both of the following conditions are present: Spousal date of death was more than two years before the tax year of the return, AND At least one qualifying child is present Edit FSC "4" . Qualifying surviving spouse Spousal date of death was either within the tax year of the return or after the tax year of the return Edit FSC "2" . For TY23 and later, use the following table to edit the correct FSC when no filing status box is marked: If Then Two names are in the caption and two signatures are present Edit FSC "2" . Both of the following conditions are present: One name is in the caption and one signature is present, AND An S-TIN or spouse's name is entered on the line under the filing status boxes, or an S-TIN is present in the caption area Edit FSC "3" . Any other condition exists Edit FSC "1" . For TY23 and later, when more than one filing status box is marked (unless both filing status Single and filing status Head of household are marked), edit the FSC for the marked filing status box that has the largest corresponding FSC number. For TY23 and later, if both filing status Single and filing status Head of household are marked, use the following table to edit the correct FSC: If Then At least one qualifying child is present Edit FSC "4" . No qualifying children are present Edit FSC "1" .

# Line 2 - Qualifying Children Information

3.21.3.81.3.2 (10-29-2025) Line 2 - Qualifying Children Information For Form 1040-SS, up to four qualifying children name controls and Social Security Numbers can be transcribed. A qualifying child may include a son, daughter, stepchild, adopted child, grandchild, niece, nephew, foster child, brother, sister, stepbrother, stepsister, half-brother, or half-sister. For additional information on qualifying children, see IRM 3.11.3.13, Dependents. Circle out the column header for all claimed dependents that are not qualifying children. See Figure 3.21.3-24. Note: Treat a relationship of "g child" as a godchild, and circle out the dependent. Also, circle out a dependent with a blank relationship. For TY25 and later, if the taxpayer has not claimed at least one qualifying child or the taxpayer's address is not in Puerto Rico, take the following actions: Circle out all dependents, "X" the amount on line 10 (Additional Child Tax Credit), and "X" Part II, even if blank. Figure 3.21.3-24 This figure represents half of Form 1040-SS (page 1):The name is Xavier Arroyata.The TIN is 000-00-5396.The address is URB Garzas (underlined in red) 5506 Av. Maricao in Trujillo Alto, PR 00976.The filing status is single and a 1 is edited to the left of the filing status area.The taxpayer claimed 3 dependents (Esperanza Arroyata, TIN: 000-00-6633, relationship: daughter; Candelaria Arroyata, TIN: 000-00-6634, relationship: daughter; Nestor Limones, TIN: 000-00-5866, relationship: uncle).Since the taxpayer claimed 1 non-qualifying dependent (an uncle), the non-qualifying dependent is disallowed. Qualifying child 3 is circled out.There is a red checkmark edited to the left of each Qualifying child number, who also has a name control and complete TIN, in the 2(c) area. Both daughters got checkmarks.Line 10 is claiming an additional child tax credit of 3000.Line 12 has an entry of 3000 for total payments and credits. Please click here for the text description of the image.

# Child's Social Security Number

3.21.3.81.3.2.1 (10-29-2025) Child's Social Security Number Every qualifying child must have a Social Security Number. Search attachments for any qualifying child's Social Security Number not listed on line 2(c). If the missing Social Security Number is found and: If four Social Security Numbers are Then Already listed Circle out the Qualifying child number of the dependent(s) without a listed Social Security Number Not already listed Edit up to four Social Security Numbers to line 2(c). If the missing Social Security Number is not found on the return or attachments, take the following actions: If the taxpayer And Then Notes "Died" (child born and died during the tax period) Birth or death certificate or copies of hospital medical record(s) are not attached Correspond for the missing birth certificate. Provides no Social Security Number Fewer than four Social Security Numbers are present for other dependents Circle out the Qualifying child number of the qualifying child(ren) on line 2(a). Provides no Social Security Number At least four Social Security Numbers are present for other dependents Take no action. When corresponding for other missing return items, correspond for missing Social Security Numbers of all qualifying children. Exception: Do not correspond when a dependent Social Security Number is missing, and there is an indication that the dependent was born and died during the tax year.

# Qualifying Child's Name Control

3.21.3.81.3.2.2 (01-01-2015) Qualifying Child's Name Control The name control(s) must be present for the first four qualifying children with Social Security Numbers listed on line 2b. If missing, edit the name control(s) to the qualifying child's name area. Determine the missing name control(s) in the following priority: From supporting attachments From the primary taxpayer's name control

# Line 2c - Child Tax Credit Indicator

3.21.3.81.3.2.3 (10-29-2025) Line 2c - Child Tax Credit Indicator Edit a checkmark in the column header and to the left of "Qualifying child" for every qualifying child with a name control and complete Social Security Number. See Figure 3.21.3-25. Caution: Do not edit a checkmark if the qualifying child was circled out (disallowed). Figure 3.21.3-25 This figure represents page 1 of Form 1040-SS (sp) showing a joint filing:The primary taxpayer is Hector Corcho.The primary TIN is 000-00-2117.The secondary taxpayer is Marta Corcho.The secondary TIN is 000-00-1869.The address is 34102 Calle Pastillo.The city/state/ZIP code field shows Toa Baja, PR 00949.The second box is checked by the taxpayer to indicate the joint filing status.Edited in red to the left of the filing status area is a 2 to indicate the filing status code.The taxpayers have claimed four (4) dependents Pati Corcho, TIN: 000-00-5963, relationship: daughter; Jorge Corcho, TIN: 000-00-2561, relationship: son; Leon Corcho, TIN: 000-00-3695, relationship: son; and Gloria Corcho, TIN: 000-00-0587, relationship: daughter.There is also a red checkmark edited to the left of each Qualifying child in the column header for every dependent with a name control and complete TIN. Please click here for the text description of the image.

# Dependent Relationship Code

3.21.3.81.3.2.4 (10-29-2025) Dependent Relationship Code The Dependent Relationship Code is a one position, numeric code. For TY25 and later, edit the Dependent Relationship Code in the column header, to the right of "Qualifying child" for each Qualifying Child, based on the relationship listed on Line 2d. Relationship Code No relationship indicated, or determination cannot be made 0 Son or daughter 1 Stepchild 2 Foster Child 3 Grandchild 4 Nephew, niece or sibling's child 5 Brother, sister, or sibling 6

# Line 3 - Self-Employment Tax

3.21.3.81.3.3 (10-29-2025) Line 3 - Self-Employment Tax If an amount is present on line 3, Schedule SE must be attached and completed. If Schedule SE is missing or blank, dummy Schedule SE from Schedule C or Schedule F, if possible. If an amount is present and Schedule SE is missing or blank and cannot be dummied, correspond for Schedule SE. Exception: If the taxpayer used this line to report unreported tips from Form 4137 or Form 8919, do not correspond. Delete the amount from line 3 and edit the amount to be included in line 6e. If line 3 is blank and Schedule SE has entries, edit the amount from Schedule SE, line 12 to Part I, line 3. See Figure 3.21.3-26. Caution: The taxpayers may include separate Schedules SE for the primary and secondary taxpayers. If the return includes two Schedules SE, combine the line 12 amounts and edit the total to Part I, line 3. Figure 3.21.3-26 This figure represents two graphics. The first graphic represents page 1 of Form 1040-SS (sp).The name is Linda Guamani.The TIN is 000-00-3365.The address is 1520 Calle El Yunque in Ponce, PR and the Zip code is 00731.In Part I, the single filing status box is checked and a 1 is edited to the left of the filing status area indicating the single filing status code.Lines 3 and 7 show a red entry of 989.The second graphic shows Schedule SE (sp).The name is Linda GuamaniThe TIN is 000-00-3365.Lines 1a and 3 each show 7000.00.Lines 4a shows 6465.00.Line 9 shows 176100.00.Line 10 shows 802.00.Line 11 shows 187.00.Line 12 shows 989.00. Please click here for the text description of the image.

# Line 4 - Household Employment Taxes (Schedule H or Schedule H (sp))

3.21.3.81.3.4 (10-30-2024) Line 4 - Household Employment Taxes (Schedule H or Schedule H (sp)) If an amount is present on line 4 and Schedule H or Schedule H (sp) is not attached, correspond for Schedule H.

# Line 5 - Additional Medicare Tax (Form 8959)

3.21.3.81.3.5 (01-01-2024) Line 5 - Additional Medicare Tax (Form 8959) If an amount is present on line 5, Form 8959 must be attached. If missing, correspond for Form 8959.

# Lines 6a - 6d- Other Taxes (TY25 and Later)

3.21.3.81.3.6 (10-29-2025) Lines 6a - 6d- Other Taxes (TY25 and Later) If there is an entry on Line 6a, Form 4137 must be attached to support the entry. If missing, correspond for Form 4137. If there is an entry on Line 6c, Form 8919 must be attached to support the entry. If missing, correspond for Form 8919.

# Line 6 - Other Taxes (TY24)

3.21.3.81.3.7 (10-29-2025) Line 6 - Other Taxes (TY24) If the taxpayer notates "Tax on tips" on the line 6 dotted portion, Form 4137 must be attached to support the entry. If missing, correspond for Form 4137. If the taxpayer notates Uncollected tax on the line 6 dotted portion, Form 8919 must be attached to support the entry. If missing correspond for Form 8919.

# Line 6e - Total Tax (Lines 6a through 6d)

3.21.3.81.3.8 (10-29-2025) Line 6e - Total Tax (Lines 6a through 6d) Compute and edit line 6e when it is blank, dash, or zero and there are entries on any of lines 6a through 6d.

# Line 7 - Total Tax

3.21.3.81.3.9 (10-30-2024) Line 7 - Total Tax Edit line 7 in dollars and cents when adjusting or computing and editing an amount. Compute and edit line 7 when it is blank, dash, zero, or illegible and there are entries leading to a total. Reminder: Edit lines 7 through 16 in dollars and cents when adjusting or computing and editing amounts. If the taxpayer notates, "Tax on Tips," on the line 7 dotted portion, Form 4137 must be attached to support the entry. If missing, correspond for Form 4137. If the taxpayer notates "Uncollected Tax" , on the line 7 dotted portion, Form 8919 must be attached to support entry. If missing, correspond for Form 8919.

# Line 8 - Estimated Tax Payments

3.21.3.81.3.10 (10-30-2024) Line 8 - Estimated Tax Payments "X" any amount that can be determined to be other than ES tax payments.

# Line 9 - Amount Paid with Request for Extension of Time to File

3.21.3.81.3.11 (10-29-2025) Line 9 - Amount Paid with Request for Extension of Time to File For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Line 10 - Additional Child Tax Credit (TY23 and Later)

3.21.3.81.3.12 (10-30-2024) Line 10 - Additional Child Tax Credit (TY23 and Later) "X" the line 10 amount if present and the address on the return is not in Puerto Rico. See Figure 3.21.3-27. "X" the line 10 amount if present and the taxpayer has not claimed at least 1 qualifying child on Part I, line 2. See IRM 3.21.3.81.3.2.3. If line 10 is blank, Part II, line 19 has an amount, and the taxpayer qualifies for the Additional Child Tax Credit, edit the Part II, line 19 amount to Part I, line 10. Note: Do not edit Part I, line 10 if Part II has been "X" -ed. Figure 3.21.3-27 This figure represents page 1 of Form 1040-SS:The name is Helen Fensol.The TIN is 000-00-8445.The address is 222 Nelansa Lane in Hagatna, GU, and the Zip code is 96932.The taxpayer checked the box for married filing separately.There is a red 3 edited to the left of the filing status area to show that the return is filed married filing separately.The taxpayer claimed three (3) dependents (Douglas Fensol, TIN: 000-00-7590, relationship: son; Benjamin Fensol, TIN: 000-00-1158, relationship: nephew; and Edward Fensol, TIN: 000-00-8965, relationship: grandson).There is an amount of 3000 on lines 10 and 12.There is a text box which states The taxpayer does not reside in Puerto Rico, and therefore is not eligible to claim the additional child tax credit.The amount that is shown on line 10 of 3000 is X-ed in red to show that the taxpayer does not qualify.The dependents are disallowed with a red circle around Qualifying child 1, Qualifying child 2, and Qualifying child 3 to indicate their ineligibility to be claimed. Please click here for the text description of the image.

# Line 11a - Credit for Qualified Sick and Family Leave Wages from Schedule(s) H for Leave Taken April 1, 2021 (TY23 Line 11a)

3.21.3.81.3.13 (10-29-2025) Line 11a - Credit for Qualified Sick and Family Leave Wages from Schedule(s) H for Leave Taken April 1, 2021 (TY23 Line 11a) For TY23, if line 11a has an amount, then Schedule H must be attached. If missing, correspond for Schedule H.

# Line 11b - Credit for Qualified Sick and Family Leave Wages from Schedule(s) H for Leave Taken After March 31, 2021, and Before October 1, 2021 (TY23 Line 11b)

3.21.3.81.3.14 (10-29-2025) Line 11b - Credit for Qualified Sick and Family Leave Wages from Schedule(s) H for Leave Taken After March 31, 2021, and Before October 1, 2021 (TY23 Line 11b) For TY23, if line 11b has an amount, then Schedule H must be attached. If missing, correspond for Schedule H.

# Line 11a - Additional Medicare Tax Withheld (Form 8959)

3.21.3.81.3.15 (10-29-2025) Line 11a - Additional Medicare Tax Withheld (Form 8959) If an amount is present on line 11a, Form 8959 must be attached. Correspond for Form 8959, if missing.

# Line 11b - Excess Social Security Tax Withheld

3.21.3.81.3.16 (10-29-2025) Line 11b - Excess Social Security Tax Withheld Take no action when the amount on line 11b ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Correspond when an amount for excess SST is present on line 11b and no Form W-2AS, Form W-2CM, Form W-2GU, Form W-2VI, or Form 499R-2/W-2PR is attached. If line 11b has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form W-2AS, Form W-2CM, Form W-2GU, Form W-2VI, or Form 499R-2/W-2PR is attached, and any single Form W-2AS, Form W-2CM, Form W-2GU, Form W-2VI, or Form 499R-2/W-2PR shows Social Security withholding greater than $10,918.20, "X" line 11b. Otherwise, take the following steps to verify the line 11b entry using dollars and cents during the computation: Compute the taxpayer's Social Security tax withheld. If the result is less than $10,453.20, "X" line 11b. Caution: If married filing jointly, DO NOT ADD Form W-2AS, Form W-2CM, Form W-2GU, Form W-2VI, or Form 499R-2/W-2PR for primary and secondary taxpayers together. Subtract $10,453.20 from the Social Security tax withheld. The result is the excess Social Security tax withheld for that taxpayer. For FS 2, the excess SST amount for each taxpayer is computed separately, and the combined total is compared to the entry on line 11b. If the computed amount differs from the line 11b amount by more than $5.00, "X" line 11b, and edit the computed amount in dollars and cents.

# Line 12 - Total Payments and Credits

3.21.3.81.3.17 (10-30-2024) Line 12 - Total Payments and Credits Edit line 12 in dollars and cents when adjusting, or computing and editing amounts. Compute and edit line 12, by adding lines 8 through 11b, when it's blank, dash, or zero, and there are entries leading to a total. Correspond for an explanation when there is an amount on line 12 and lines 8 through 11b are blank. Exception: Do not correspond if "Form 4868" or an explanation is noted on the dotted portion of line 12. Note: Do not correspond if Form 8959 is attached to support withholding.

# Line 14a - Refund

3.21.3.81.3.18 (10-30-2024) Line 14a - Refund Compute and edit line 14a, by subtracting line 7 from line 12, when lines 13, 14a, 15, and 16 are all blank, line 12 is greater than line 7, and any of the following conditions are present: Line 7 has an entry, The taxpayer has computed or indicated no tax due on line 7, or It can be determined that line 7 would be zero if computed.

# Lines 14b, 14c, and 14d - Direct Deposit Information

3.21.3.81.3.19 (01-01-2024) Lines 14b, 14c, and 14d - Direct Deposit Information For complete instructions, see IRM 3.11.3, Individual Income Tax Returns. Note: When Form 1040 refers to lines 35b, 35c, and 35d, they are lines 14b, 14c, and 14d on Form 1040-SS.

# Line 15 - ES Credit Elect

3.21.3.81.3.20 (10-30-2024) Line 15 - ES Credit Elect If lines 13, 14a, and 15 are the same and: ES Payments (line 8) are claimed, "X" the line 14a entry. ES Payments (line 8) are not claimed, "X" the line 15 entry. Note: Take no action when the overpayment (line 13) is divided between lines 14a and 15.

# Line 16 - Amount You Owe

3.21.3.81.3.21 (10-29-2025) Line 16 - Amount You Owe Compute and edit line 16, by subtracting line 12 from line 7 when lines 13, 14a, 15, and 16 are all blank, dash, or zero and line 7 is greater than line 12.

# Signature

3.21.3.81.3.22 (01-01-2015) Signature For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Identity Protection Personal Identification Numbers (IP PIN)

3.21.3.81.3.23 (10-30-2024) Identity Protection Personal Identification Numbers (IP PIN) Identity Protection Personal Identification Number (IP PIN) is located in the "Sign Here" area of the return. If it is not 6 numeric digits, circle the IP PIN.

# Paid Preparer Data

3.21.3.81.3.24 (01-01-2024) Paid Preparer Data Edit the E-File Waiver Indicator to the right of the IP PIN boxes. For additional instructions, see IRM 3.11.3.14.8, Paid Preparer Data.

# Editing Part II - Bona Fide Residents of Puerto Rico Claiming Additional Child Tax Credit (TY23 and Later)

3.21.3.81.4 (10-30-2024) Editing Part II - Bona Fide Residents of Puerto Rico Claiming Additional Child Tax Credit (TY23 and Later) For TY23 and later, "X" Part II if entries are present, and the address on the return is not in Puerto Rico or the taxpayer did not claim at least 1 qualifying child on Part I, line 2. Note: "X" Part II even if there is not an amount on Part I, line 10.

# Line 3 - Modified Adjusted Gross Income (TY23 and Later)

3.21.3.81.4.1 (01-01-2024) Line 3 - Modified Adjusted Gross Income (TY23 and Later) Reserved

# Line 13a - Withheld Social Security, Medicare, and Additional Medicare Taxes (Not Transcribed) (TY23 and Later)

3.21.3.81.4.2 (10-30-2024) Line 13a - Withheld Social Security, Medicare, and Additional Medicare Taxes (Not Transcribed) (TY23 and Later) For TY23 and later, if an amount is present on Part II, line 13a and the taxpayer is claiming the Additional Child Tax Credit (ACTC) on Part I, line 10, supporting documentation (Forms 499R-2/W-2PR or leave and earnings statements) must be present. If missing, correspond for documentation. For TY23 and later, if Part II, line 13a is blank, ACTC is claimed on Part I, line 10, and Forms 499R-2/W-2PR or leave and earnings statement are present, calculate the Part II, line 13a value using the Forms 499R-2/W-2PR or leave and earnings statements by adding all withheld Social Security, Medicare, and Additional Medicare taxes, and then edit or adjust Part II, line 13f. For TY23 and later, if an amount was already present on Part II, line 13a, verify the amount claimed by adding all withheld Social Security, Medicare, and Additional Medicare taxes from Forms 499R-2/W-2PR or leave and earnings statements: If the line 13a amount is correct, take no action. If the line 13a amount is not correct, edit or adjust Part II, line 13f using the correct amount for line 13a. Note: Allow for rounding by the taxpayer ($2.00 tolerance per Form 499R-2/W-2PR). Caution: Do not use dollars and cents during the computation.

# Line 13f - Total Social Security, Medicare, and Additional Medicare Taxes

3.21.3.81.4.3 (01-01-2024) Line 13f - Total Social Security, Medicare, and Additional Medicare Taxes Compute and edit line 13f when it is blank, dash, or zero and there are entries on any of lines 13a through 13e.

# Schedule C (Sequence 09, 10, 11) - Profit or Loss From Business (TY23 and Later)

3.21.3.81.5 (01-01-2024) Schedule C (Sequence 09, 10, 11) - Profit or Loss From Business (TY23 and Later) The following lines on Schedule C, when attached to a Form 1040-SS, are T-lines and T-Compute lines: T-Lines T-Compute Lines Line 1 Line 18 Line 25 Line 26 There are no T-Compute lines on Schedule C when attached to a Form 1040-SS. Edit Sequence Code "09" , if not preprinted, in the upper-right margin of the first Schedule C with T-line entries, edit Sequence Code "10" in the upper-right margin of the second Schedule C with T-line entries, and edit Sequence Code "11" in the upper-right margin of the third Schedule C with T-line entries. If there are more than three Schedules C with T-line entries, combine T-line amounts following instructions in IRM 3.11.3, Individual Income Tax Returns.

# Schedule F - Profit or Loss From Farming (TY23 and Later)

3.21.3.81.6 (01-01-2024) Schedule F - Profit or Loss From Farming (TY23 and Later) If attached to a Form 1040-SS, the Schedule F has no T-lines or T-Compute lines. "X" Schedule F if attached to a Form 1040-SS.

# Schedule SE (Sequence 17, 18) - Self-Employment Tax (TY23 and Later)

3.21.3.81.7 (10-30-2024) Schedule SE (Sequence 17, 18) - Self-Employment Tax (TY23 and Later) The following lines on Schedule SE, when attached to a Form 1040-SS, are T-lines and T-Compute lines: T-Lines T-Compute Lines Top right margin (Sequence Code 17/18) TIN Line 1a - 3 Right margin of line 4c (SE Quarters Covered) Line 5a Line 8d SE Farm Code (Method Code) edited in the center - bottom margin of page 1 Line 3 Line 8d Only two Schedules SE can be processed; one Schedule SE for each of: The primary taxpayer The secondary taxpayer If the TIN is present but no dollar amounts are present, "X" Schedule SE. If only one processable Schedule SE is present, edit Sequence Code "17" , if not preprinted. If two processable Schedules SE are present, one for the primary taxpayer and one for the secondary taxpayer, edit the Sequence Code as follows: Edit "17" , if not preprinted, for the primary taxpayer. Edit "18" for the secondary taxpayer. Combine multiple Schedules SE when there is more than one Schedule SE for any one taxpayer. Delete those schedules not used. Take one of the following actions when one Schedule SE was submitted for two taxpayers: Allocate each taxpayer's Schedule SE amounts to two separate dummy Schedules SE. "X" the Schedule SE with the combined taxpayer liability. Correspond for the correct allocation when it cannot be determined.

# Social Security Number

3.21.3.81.7.1 (10-30-2024) Social Security Number A TIN must be present if there are significant T-line entries on Schedule SE. If the TIN is missing, illegible, or incomplete, take the following actions: Edit the TIN from the caption on Form 1040-SS. If the TIN is not present in the caption, search Form(s) W-2 and other attachments for the missing TIN. Note: Also, edit the missing TIN to the caption. If the TIN and name are both missing, edit the primary TIN. Note: If corresponding for missing signature on a joint return, also request the Social Security Number. If there are multiple TINs and one name on Schedule SE, circle out the TIN that does not match the name. Use the caption area to determine which TIN should be circled out. Correspond for a missing TIN if it cannot be perfected or obtained through research, with the exception of rejected ITIN/Form W-7.

# Line 1a - Net Farm Profit or (Loss)

3.21.3.81.7.2 (10-30-2024) Line 1a - Net Farm Profit or (Loss) If blank, edit the amount from Schedule F, line 34 to Schedule SE, line 1a.

# Line 1b - Conservation Reserve Program Payments

3.21.3.81.7.3 (10-30-2024) Line 1b - Conservation Reserve Program Payments If blank, edit the amount from Schedule F, line 4b to Schedule SE, line 1b.

# Line 2 - Net Nonfarm Profit or (Loss)

3.21.3.81.7.4 (10-30-2024) Line 2 - Net Nonfarm Profit or (Loss) If blank, edit the amount from Schedule C, line 31 to Schedule SE, line 2.

# Line 3 - Total Net Profit or (Loss)

3.21.3.81.7.5 (01-01-2024) Line 3 - Total Net Profit or (Loss) Compute and edit line 3 when it is blank, dash, or zero and there are entries leading to a total. "X" Schedule SE when the amount on line 3 is a negative amount or it is less than $434. Exception: Do not "X" Schedule SE when line 5a has an entry of $109 or more. If lines 1a, 1b, 2, and 3 are all blank and you are unable to determine line 3 from attachments, but line 4a has an entry, divide the amount on line 4a by .9235 and edit the result on line 3. If lines 1a, 1b, 2, 3, and 4a are all blank, but line 4b has an entry, edit line 4b to line 3.

# Right Margin of Line 4c - SE Quarters Covered

3.21.3.81.7.6 (01-01-2015) Right Margin of Line 4c - SE Quarters Covered When the return is for a short year or for a change of accounting period, edit the number of quarters covered in the margin to the right of line 4c, using the following guidelines: The quarters begin in January, April, July, and October. A fraction counts as a full quarter. Code SE quarters as follows - Code 1 for one quarter, - Code 2 for two quarters, - Code 3 for three quarters - DO NOT code for four quarters.

# Line 5a - Church Employee Self-Employment Wages

3.21.3.81.7.7 (01-01-2015) Line 5a - Church Employee Self-Employment Wages If line 5a has an entry of $109 or more, process regardless of the line 3 amount. If line 5a is blank and line 5b has an entry, divide the amount on line 5b by .9235, and edit the result on line 5a.

# Line 8d - Total Social Security Wages and Tips

3.21.3.81.7.8 (10-30-2024) Line 8d - Total Social Security Wages and Tips If the amount on line 8d is equal to or greater than $176,100 for TY25 and lines 8b and 8c are blank, add applicable taxpayer's Form 499R-2/W-2PR, Form W-2VI, Form W-2GU, Form W-2CM, or Form W-2AS wages and tips subject to Social Security tax withholding, and take one of the following actions: If wages and tips per Form 499R-2/W-2PR, Form W-2VI, Form W-2GU, Form W-2CM, or Form W-2AS are less than $1176,100 for TY25, edit the total income on line 8d. If there is no Form 499R-2/W-2PR, Form W-2VI, Form W-2GU, Form W-2CM, or Form W-2AS income, lines 8a through 8c are blank, and line 8d is equal to or greater than $176,100 for TY25, "X" line 8d. Note: For prior year line 8d maximum thresholds, see IRM 3.11.3, Individual Income Tax Returns. If the amount is equal to or greater than $176,100 for TY25 and line 8b or 8c contains a significant entry, take no action. Compute and edit line 8d when it is blank, dash, or zero and one of the following conditions is present: There are entries leading to an amount. The taxpayer has Form 499R-2/W-2PR, Form W-2VI, Form W-2GU, Form W-2CM, or Form W-2AS wages and/or tips subject to Social Security tax withholding. Note: Only edit the amounts from the "Social security wages" box and/or the "Social security tips" box if there is also an amount in the box for "Social Security tax withheld" .

# Bottom-Center Margin - SE Method Code

3.21.3.81.7.9 (01-01-2024) Bottom-Center Margin - SE Method Code Edit the SE Method Code to the bottom - center margin of Schedule SE, Page 1. Exception: Do Not edit the SE Method Code when it can be determined that the entries on Schedule SE, line 15 and/or Schedule SE, line 17 are misplaced. Edit SE Method Code "1" when both of the following conditions are present: Schedule SE, line 15 is blank or zero, and Schedule SE, line 4b and Schedule SE, line 17 have significant amounts that are equal. Exception: Do Not edit the SE Method Code when it can be determined that the entries on Schedule SE, line 15 and/or Schedule SE, line 17 are misplaced. Edit SE Method Code "2" when both of the following conditions are present: There is a significant entry on either Schedule SE, line 15 or Schedule SE, line 17, and SE Method Code "1" has not been assigned. Exception: Do Not edit the SE Method Code when it can be determined that the entries on Schedule SE, line 15 and/or Schedule SE, line 17 are misplaced.

# Forms and Schedules that are Allowed to be Attached to Form 1040-SS

3.21.3.81.8 (10-30-2024) Forms and Schedules that are Allowed to be Attached to Form 1040-SS The following forms and schedules are the only transcribed forms and schedules that can be attached to Form 1040-SS: Form 8867 Form 8888 Form 8919 Form 8959 Form 9000 (TY21 and later) Schedule C Note: See IRM 3.21.3.81.5 for T-Lines when Schedule C is attached to Form 1040-SS. Schedule H Schedule LEP (TY19 and later) Schedule SE If any other forms or schedules are attached, they must be "X" -ed or moved behind the last transcribable form.

# Form 1040-NR and Form 1040-NR-EZ - General Instructions

3.21.3.82 (10-30-2024) Form 1040-NR and Form 1040-NR-EZ - General Instructions Form 1040-NR are filed by: Nonresident aliens who have United States source income or income effectively connected with a U.S. trade or business Nonresident aliens who are temporarily present in the United States Dual-status taxpayers in the year of entry into (as a dual-status statement) or departure from the U.S. Note: If there is an indication that the taxpayer is a Dual-Status filer, follow instructions for Dual-Status Returns. See IRM 3.21.3.85.1. Dual-status taxpayers in the year that status changed due to expatriation Reminder: Convert allForm 1040-NR-EZ to Form 1040-NR. All Form 1040-NR and Form 1040-NR-EZ are processed under FLC 20. See table below to determine Document Code and Return Due Date: Form Filed Criteria Document Code Return Due Date Program Form 1040-NR Wages on line 1a 73 /04/15/2026 46120, 46160 Form 1040-NR No Wages 72 06/15/2026 46140, 46180

# Form 1040-NR - Special Procedures

3.21.3.83 (10-29-2025) Form 1040-NR - Special Procedures If the taxpayer indicates that they were a resident in the U.S. all year, review the complete return and attachments for additional information explaining the taxpayer's claim of continuing nonresident alien status. If attachments do not verify continuing non-residency, correspond for filer's U.S. Status. When corresponding, use Form 9143 with the following literal: If you are a U.S. Citizen or U.S. Resident, you must file Form 1040 and report worldwide income. Please complete, sign and return a Form 1040 after attaching all necessary forms, schedules and federal income tax withholding statements. Exception: Do not correspond when the taxpayer is an employee of a foreign government or holds an "F" , "J" , "M" , or "Q" visa. But see IRM 3.21.3.3.2 to verify that the taxpayer continues to be an exempt individual under the substantial presence test. For example, a taxpayer temporarily present in the United States on a J visa is an exempt individual for only 2 out of 6 years and a student temporarily present in the United States on a F visa is an exempt individual for only 5 years. All amounts are to be reported in U.S. currency ONLY. If amounts are reported in foreign currency, give the return to the workleader. The workleader will convert any amounts reported in foreign currency to U.S. dollars using the web address, https://fiscaldata.treasury.gov/datasets/treasury-reporting-rates-exchange/treasury-reporting-rates-of-exchange, and using the December rates for the tax year of the return. Edit FPC "S" if Schedule SE is attached or the taxpayer includes an entry on Schedule 2, line 4. If Form 1040-NR, line 1b has an entry, edit SPC "E" . Edit CCC "C" when Form 8833 is attached to Form 1040-NR. A fiscal year is twelve full months ending on the last day of the any month other than December. For TY 202607 and later, edit FPC "F" if the return is a fiscal year filer and any of the following applies: Form 1062 is attached. An amount is present on Schedule 2, line 17z and the taxpayer notated "Deferral 1062I" . An amount is present on Schedule 3, line 13z and the taxpayer notated "Deferral 1062NL" . When Form 1042-S with Exemption Code 02 in box 3a (exempt under an Internal Revenue Code section) is filed on Form 1040-NR: If Then Taxpayer has not entered income or exclusion Take no action. Taxpayer shows the amount as income and exclusion or as a tax treaty on page 1 "X" entries where found. Taxpayer reported gross income and excluded withholding allowance "X" those amounts wherever found and accept the net income where reported. If the taxpayer reports all or part of net income as taxable income Accept the taxpayer's amount on the appropriate line. Prepared by USAID Note: The return may be stamped Treasury Regulation 1.6012-1(b)(3), USAID/G/HCD/POSS/TAX. Accept the return as filed, Verify the Form 1042-S for the taxpayer's name, Taxpayer Identification Number (TIN), and withholding only, and DO NOT "X" out entries in accordance with normal Exemption Code 02 procedures. When Form 1042-S with Exemption Code 04 in box 3a (exempt under a tax treaty) is filed on Form 1040-NR: If Then Taxpayer has entered a valid tax treaty article on Schedule OI, and reported the exempt income on line 1k Take no action. Taxpayer has identified a valid treaty and has included the exempt amount as taxable income (e.g., line 1a) and has not included or deducted it elsewhere on the return "X" the entry, Adjust line 1a or wherever found to exclude the exempt income, and Edit exempt amount to line 1k. Taxpayer did not identify a valid article number Correspond. Exception: Do not correspond for a missing article number when Income Code 16 (Income Code 15 for TY14 and prior) AND Exemption Code 04 are present AND any of the following conditions apply: • Form 1042-S was issued by a college/university, or • it is a zero-balance return, or • Form 1042-S has no withholding. Certain situations will require special editing procedures. The special situations in this section include: Employees of International Organizations and Foreign Governments Government Service Employees IRC 872 Commuters from Canada or Mexico Article XXV, U.S. – Canada Income Tax Treaty Form 1040-NR/Form 1040-NR-EZ - Manual Refund Procedures Tax Treaty – General Information Exclusion(s) Due to Tax Treaties Expatriation Returns Exchange Visitor Program Form 1040-NR or Form 1040-NR-EZ Decedent Returns Social Security/Railroad Retirement Benefits Other Retirement Benefits Withholding: Survivor Benefit Annuities (SBAs)/Survivor Benefit Plans (SBPs) Tie-Breaker Form 1040-NR with Address or Income from Guam Protective Claims Norway Treaty Estate or Trust Returns

# Employees of International Organizations and Foreign Governments

3.21.3.83.1 (01-01-2015) Employees of International Organizations and Foreign Governments Nonresident aliens who work in the United States for certain international organizations (e.g., certain United Nations organizations, International Bank for Reconstruction and Development, and International Monetary Fund (IMF)) or for foreign governments may exempt income earned in the U.S. from U.S. taxation under IRC 893 when they file their U.S. individual tax returns. Employees of an international organization claiming exemption should know the number of the Executive Order covering their organization and should have some written evidence of their acceptance or designation by the Secretary of State. If claimed on Form 1040-NR, see IRM 3.21.3.84.19.8.

# Government Service Employees

3.21.3.83.2 (01-04-2021) Government Service Employees The individuals claiming this treaty article will be filing Form 1040-NR and will hold A-1 or A-2 visas. Refer to Exhibit 3.21.3-14 for a list of countries that will help determine if the claim is valid. See IRM 3.21.3.84.19.8 for additional information. Example: Article 19 from Australia is a valid treaty on Form 1040-NR. If a taxpayer claims this article, allow the claim.

# IRC 872

3.21.3.83.3 (04-24-2020) IRC 872 Under IRC 872(b)(3), compensation paid by a foreign employer to a nonresident alien individual present in the United States on an "F" , "J" , or "Q" visa while participating in certain exchange or training programs is exempt from tax. A "foreign employer" includes nonresident alien individual, foreign partnership, or foreign corporation, or an office or place of business maintained in a foreign country or in a territory of the United States by a domestic corporation, a domestic partnership, or an individual who is a citizen or resident of the United States.

# Commuters from Canada or Mexico

3.21.3.83.4 (01-01-2015) Commuters from Canada or Mexico If a taxpayer from Canada or Mexico indicates that they are a "commuter" (travels daily from their home in Canada or Mexico to a work location in the U.S.), they: Are not considered present in the United States for purposes of the substantial presence test. See IRM 3.21.3.3.2 for more information. Are treated as a nonresident alien for U.S. tax purposes, if they do not meet the substantial presence test. Must file Form 1040-NR or Form 1040-NR-EZ to report their U.S. income.

# Article XXV, U.S. - Canada Income Tax Treaty

3.21.3.83.5 (10-30-2024) Article XXV, U.S. - Canada Income Tax Treaty When a Form 1040-NR is received from a Canadian citizen/resident who has income from U.S. sources, they may be computing their U.S. tax liability in accordance with the special provisions of the tax treaty between the United States and Canada which allows married Canadian citizens/residents to figure the U.S. tax liability using joint (Married Filing Joint) tax rates. Caution: Article XXV is usually filed with both Form 1040-NR and Form 1040; do not process as a Dual-Status return. Note: Do not code for a single or head of household taxpayer. The following are indications that can help identify Canadian taxpayers claiming "Article XXV" : Two names are entered in the caption area of the return, Hypothetical married filing joint tax computation using worldwide income (income from all sources and includes foreign and U.S. income) for both taxpayers (Form 1040 or statement), A statement is attached indicating that a special computation permitted by the U.S.-Canada Tax Treaty has been used, A notation of "Article XXV" is found on the return or its attachments. When this condition is recognized on a Form 1040-NR refund return: Edit the name of the secondary taxpayer to the additional information line, Edit CCC "Y" , Edit an Action Trail, and "X" Form 1040. Note: If Form 1040-NR is not a refund, "X" Form 1040 and process Form 1040-NR using normal procedures.

# Form 1040-NR - Manual Refund Procedures

3.21.3.83.6 (10-30-2024) Form 1040-NR - Manual Refund Procedures On a refund return when the nonresident has an address on Form 1040-NR, Page 2, line 35e that differs from the caption address and at least one is foreign, edit CCC "Y" and an action trail of "Manual Refund." See Figure 3.21.3-28. If a foreign address is present in the Form 1040-NR caption, and a name is present or has been edited as a second AIL, underline both. Then take the following actions for REFUND returns: For Decedent Returns - Do not edit CCC "L" or CCC "W" . Edit CCC "Y" and an action trail of "Manual Refund" . Exception: Do not edit CCC "Y" if CCC "3" has been edited. If taxpayer has elected to use Direct Deposit or has been issued an IRS Number (IRSN), do not edit CCC "Y" . An IRSN can be identified when the middle two digits are not 50 - 65, 70 - 88, 90 - 92 or 94 - 99, and the number starts with a 9. Figure 3.21.3-28 This figure contains two graphics. The first graphic represents page 1 of Form 1040-NR:The name is Rafael Cadagua.The TIN as 000-00-1414.The address is 340 Quartz Drive in Santa Fe, NM, and the ZIP code is 87501.Lines 1a, 1z, 9, and 11a of Form 1040-NR, page 1 show the amount of 37000.There is a red SP edited in the right margin beside the address area, to indicate the country code.Since the taxpayer checked the single filing status box, the filing status code edited in red is a 1.The second graphic represents a partial view of Form 1040-NR, page 2. The view shows that there is an amount of 2400 on line 33 and 1700 on line 35a. There is an address in the block at line 35e, If you want your refund check mailed to an address outside the United States, not shown on page 1, enter here, which is 77 Plaza de Huebra 28056 Madrid, Spain.On a refund return when the nonresident has an address in the block notated, If you want your refund check mailed to an address outside the United States, not shown on page 1, enter here, on line 35e which differs from the entity address and at least one is foreign, issue a manual refund. A Computer Condition Code (CCC) of Y is edited in red to the right of the Trust box in the Filing Status area, and the notation of Manual Refund is edited vertically in the left side margin as the action trail. Please click here for the text description of the image.

# Tax Treaty - General Information

3.21.3.83.7 (10-30-2024) Tax Treaty - General Information The United States has income tax treaties with a number of countries. Under these treaties, residents of foreign countries are taxed at a reduced rate, or are exempt from U.S. income taxes on certain items of income they receive from sources within the United States. These reduced rates and exemptions vary among countries and specific items of income. Note: An individual is a "resident" of a foreign country under an income tax treaty if they are treated as a resident under the domestic laws of that country for income tax purposes. Certain treaties provide that citizenship alone is not sufficient to establish "residency" in U.S. for purposes of the treaty and impose additional requirements, such as physical presence, a permanent home or habitual abode within the United States to establish U.S. residency. Tax treaties reduce the U.S. taxes of residents of foreign countries. With certain exceptions, they do not reduce the U.S. taxes of U.S. citizens or residents. U.S. citizens and residents are subject to U.S. income tax on their worldwide income (income from all sources and includes foreign and U.S. income).

# Exclusion(s) Due to Tax Treaties

3.21.3.83.7.1 (01-01-2018) Exclusion(s) Due to Tax Treaties If the taxpayer claims an exclusion of income or exemption from tax due to a treaty, a valid treaty article number must be identified. Verify the validity of the tax treaty exemption claimed using Exhibit 3.21.3-10. Do not accept Exemption Code "04" on Form 1042-S as a valid tax treaty exemption. Treaty country and specific treaty benefits claimed must be verified. Exception: Do not correspond for a missing article number when Income Code 16 (Income Code 15 for TY14 and prior) AND Exemption Code 04 are present AND any of the following conditions apply: - Form 1042-S was issued by a college or university, or - It is a zero-balance return, or - Form 1042-S shows no withholding. Note: When determining if a taxpayer is a resident of Canada, do not use the address in the caption. The country should be determined by Schedule OI, questions A and/or B, or Form 1040-NR-EZ, page 2. If the taxpayer includes a copy of a letter from the U.S. Competent Authority or from a foreign competent authority for the taxpayer's country of residence that says the income the taxpayer is excluding under the treaty is taxable only in the foreign country, allow the exclusion. Tax treaty country and article are found on the treaty table located at Exhibit 3.21.3-10. The following footnotes must be used when determining if a taxpayer is eligible for the benefits of that treaty. If the amount is exceeded per the footnote, "X" the treaty amount claimed. Footnote Explanation 25 Exemption does not apply if gross receipts (including reimbursements) exceed this amount. 26 Exemption does not apply if net income exceeds this amount. 28 Exemption does not apply if compensation (or gross income from the Philippines and Romania) exceeds this amount. 46 Exemption does not apply if gross receipts exceed this amount.

# Expatriation Returns

3.21.3.83.8 (06-07-2022) Expatriation Returns Taxpayers that are subject to expatriation tax must attach Form 8854, Initial and Annual Expatriation Statement, to their 1040-NR for the year of expatriation. Taxpayers may elect to defer all or a portion of the expatriation tax. Taxpayers making this election must file Form 8854 annually up to and including the year in which the full amount of deferred tax and interest are paid. If Form 8854 is attached: If unnumbered return and there is no LB&I stamp indicating LB&I received the return, stop coding, and route the entire return to Stop 4301 AUSC. If unnumbered return and there is an LB&I stamp indicating LB&I received the return, edit Audit Code "K" , and continue processing as normal. If numbered return, edit Audit Code "K" , and continue processing as normal.

# Exchange Visitor Program

3.21.3.83.9 (01-04-2021) Exchange Visitor Program Foreign nationals with J-1 Visas are temporarily in the U.S. as part of the Exchange Visitor Program for a period of a few weeks to several years. There are many program categories within the Exchange Visitor Program including programs for individuals in the U.S. for the primary purpose of participating in programs for study, training, teaching or research. These J-1 visa program participants may be eligible for the treaty benefits of these categories of personal services. Individuals participating in the Private Sector Programs Division in the Camp Counselor and Summer Work/Travel categories are foreign students who are in the U.S. to work temporary, seasonal-type jobs during school vacations for a period not to exceed 4 months. These J-1 visa program participants are not eligible for benefits under a treaty article (Students, Trainees, Teachers and Researchers) for the income they earn while performing services in the United States. In addition, these individuals are not eligible to deduct their travel expenses to the United States as employee business expenses on Schedule A. To determine if the taxpayer is part of the Camp Counselor and Summer Work/Travel categories, use the information below: Wages from summer-type seasonal work (e.g., retail, casinos, resorts, or restaurants) Number of days present in the U.S. of 4 months or less (see Schedule OI, line H) If the taxpayer meets the criteria above and is claiming a tax treaty for studying, training, teaching, or research from their country, take the following actions: "X" the treaty exclusion amount wherever it is reported. Edit the income on the appropriate line of Form 1040-NR. Note: The taxpayer may identify themselves as a "Cultural Exchange Participant" or Service Provider.

# Form 1040-NR or Form 1040-NR-EZ Decedent Returns

3.21.3.83.10 (01-01-2015) Form 1040-NR or Form 1040-NR-EZ Decedent Returns For complete instructions, see IRM 3.21.3.10. Note: See Figure 3.21.3-29 showing the correct way to code a decedent AIL along with a foreign address. Figure 3.21.3-29 This figure contains three (3) graphics. The first graphic represents page 1 of Form 1040-NR:The name is Carla Tissino.The TIN is 000-00-4950.The address is 6093 via Vesuvius in Milan, Italy.The country of Italy has a slash edited in red before and after, along with a dollar sign ($).The block letters of IT are edited in red to the right of the country in the margin to indicate the country code.The filing status box 1 is checked (single nonresident alien), and a Filing Status Code (FSC) of 1 is edited in red in the margin to the left of the filing status boxes.Lines 1a, 1z, and 9 show the amount of 30000.00.A Manual Refund is issued on a refund return filed by a nonresident who is deceased, a red block letter of Y is edited to the right of the Trust box in the Filing Status area, and the notation of Manual Refund is edited in the left side margin vertically as the action trail.The second graphic represents a partial page 2 of Form 1040-NR showing the amount of 2200.00 on line 33 and 1200.00 on line 35a, indicating that the taxpayer is entitled to a refund.The third graphic represents Form 1310. The taxpayer is Carla Tissino. The date of death is 06-05-2025. The taxpayer's TIN is 000-00-4950. The name of the person claiming the refund is Luca Tissino, and their address is 1125 via Curone, Apartment 6J in Milan, Italy. There is a text box which states Form 1040-NR and valid Form 1310 both have original signatures.The Form 1310 indicates that the taxpayer is deceased, and therefore, the entity on Form 1040-NR, page 1 is coded accordingly.DECD is edited in red after the taxpayer's last name of Tissino.Luca Tissino is edited and underlined in red to indicate the additional information line as the person claiming the refund.Luca Tissino's address of 1125 via Curone, Apartment 6J is then edited to the entity area of page 1 and underlined in red as the new address.The street address for Carla Tissino is circled out.The Computer Condition Codes of F and Y are edited to the right of the Trust box in the Filing Status area. The F is for the taxpayer who died during the tax year, and the Y is to indicate a manual refund. Please click here for the text description of the image.

# Social Security/Railroad Retirement Benefits

3.21.3.83.11 (01-01-2024) Social Security/Railroad Retirement Benefits Follow the instructions below when Form 1040-NR is filed with Form SSA-1042S or Form RRB-1042S. Note: Do not confuse Form SSA-1099, Form RRB-1099, or Form 1042-S with Form SSA-1042S or Form RRB-1042S. A nonresident alien is taxed at 30% on 85% of their Social Security/Railroad Retirement Benefits income, unless exempt by a tax treaty. The following are the only countries whose residents are exempt from U.S. tax on their Social Security/Railroad Retirement Benefits income: Canada Egypt Germany India (exempts only the portion of benefits that is based on earnings from U.S. Federal, State or local government employment for an individual who is both a resident and national of India) Ireland Israel Italy Japan Romania United Kingdom (includes Great Britain, England, Northern Ireland, Scotland, and Wales) Exception: Residents of Switzerland are taxed at 15% on 85% of their Social Security/Railroad Retirement Benefits income. If the taxpayer is not a resident of one of the exempt countries, multiply the total Social Security/Railroad Retirement Benefits income (box 5) by .85, multiply that amount by .30, and then edit the calculated tax result to be included on line 23a. Exception: For residents of Switzerland, multiply the total Social Security/Railroad Retirement Benefits income by .85, multiply that amount by .15, and then edit the calculated tax result to be included on line 23a.

# Other Retirement Withholding: Survivor Benefit Annuities (SBAs)/Survivor Benefit Plans (SBPs)

3.21.3.83.12 (10-30-2024) Other Retirement Withholding: Survivor Benefit Annuities (SBAs)/Survivor Benefit Plans (SBPs) A member of the United States military reaching retirement age may elect to receive, during their lifetime, a reduced United States military pension in order that their surviving spouse may continue to draw a United States military pension after their death. After the death of the United States military retiree, the pension which is paid to the retiree's surviving spouse is called a "Survivor Benefit Annuity" (SBA) or a "Survivor Benefit Plan" (SBP). Note: Amounts reported on Form 1042-S with Income Code 15 (Income Code 14 for TY14 and prior) are U.S. source taxable income unless a tax treaty between the United States and the country in which the NRA recipient is a resident provides otherwise. SBAs/SBPs paid to a nonresident alien who is a resident in one of the following countries are not subject to U.S. tax under current treaties, provided they meet any requirements listed below or, if the country is marked with an asterisk (*), they are a national of the country in which they are a resident: Country Country Australia Latvia* Austria Lithuania* Bangladesh* Luxembourg* Barbados Malta* Belgium* Mexico* Bulgaria* Morocco* China* Netherlands* Chile* New Zealand (must also be a citizen of New Zealand) Cyprus* Norway Czech Republic (decedent must have been a resident of Czech Republic) Pakistan Denmark* Portugal* Egypt Romania Estonia* Russia/Russian Federation (must also be a citizen of Russia) Finland* Slovak Republic/Slovakia (decedent must have been a resident of Slovak Republic) Germany* Slovenia* Hungary* South Africa* Iceland* Spain* India* Sri Lanka Ireland* Sweden (must also be a citizen of Sweden) Israel Switzerland* Italy* Thailand* Jamaica* (decedent must have been a national of Jamaica at the time the services were rendered) Tunisia Japan* Turkey* Kazakhstan (must also be a citizen of Kazakhstan) United Kingdom* (includes notations of Great Britain, England, Northern Ireland, Scotland, and Wales) Korea (South) Venezuela* Note: The U.S.-Chile income tax treaty entered into effect with respect to taxes withheld at source paid or credited on or after February 1, 2024, and for other taxes for taxable periods beginning on or after January 1, 2024. Accordingly, beginning in 2024, SBAs and SBPs paid to a resident and national of Chile should be treated as not subject to U.S. tax. Note: The U.S.-Hungary tax treaty was terminated in 2023 and ceased to have effect with respect to U.S. withholding tax after January 1, 2024. Beginning in 2024, it may not be relied upon to exclude SBAs and SBPs from U.S. tax. Note: The U.S.-Russia tax treaty is suspended for these taxes as of August 16, 2024. It may not be relied upon after that date to exclude SBAs and SBPs from U.S. tax. SBAs/SBPs paid to residents and citizens of the following countries are taxable in the United States at the following tax rates under current tax treaties (or in the absence of a treaty): Country Tax Rate Canada 15% All other countries (no tax treaty) 30%

# Tie-Breaker

3.21.3.83.13 (01-01-2023) Tie-Breaker If the taxpayer claims residency using the "Tie-Breaker Rule," use the same criteria to validate the treaty. See IRM 3.21.3.84.8.6. Note: Article IV is not a valid article to exempt income under when citing Tie-breaker. A taxpayer cannot claim an Article pertaining to "Tie-breaker," such as Article IV or Article 4, to exclude U.S. source income since "Tie-breaker" articles only pertain to residency. However, if a taxpayer is excluding non-U.S. source income claiming only Article IV or Article 4, the exclusion is allowable since non-U.S. source income is not taxable. Follow the taxpayer's intent if they report and subsequently exclude non-U.S. source income from their return. Note: If the taxpayer is claiming "Tie-breaker" Article to exclude U.S. source income, edit the excluded U.S. source income back into line 1a. If the taxpayer is claiming non U.S. source income on line 1k, "X" the entry. If the income made by the taxpayer is not U.S. sourced, no tax is assessed and the taxpayer receives all their withholding. The taxpayer may file a Form 1040-NR with a U.S. address when using the tie-breaker rule. If the taxpayer is using Article IV or Article 4 to exempt U.S. source income, "X" line 1k and ensure the income is reported on Form 1040-NR, lines 1a through 7a, or Schedule 1, lines 1 through 7 or 9. If the source of income is not specified, "X" line 1k and edit the amount to line Form 1040-NR, lines 1a through 7a, or Schedule 1, lines 1 through 7 or 9. Note: U.S. sourced income is reported on Form W-2, Form 1042-S, Form SSA-1042S, Form RRB-1042S, Form 1099 Series, Form 8805, Form 8288-A, or a statement of income.

# Form 1040-NR with Address or Income from Guam

3.21.3.83.14 (01-01-2019) Form 1040-NR with Address or Income from Guam If Guam is shown on Schedule OI, question B and the return is: Unnumbered, place it in the designated bin in unit for transshipping back to Guam (see IRM 3.21.3.77.1.1 for transshipping procedures). Numbered, edit Action Code "640" and attach Form 4227 notating "Delete DLN and transship back to Guam." If the address shown on Schedule OI, question B is other than the U.S. or Guam, correspond for place of residence. If the country on Form W-2 is Guam and copy "C" of the W-2 is attached: Edit Action Code "332." Attach Form 4227 notating "Guam W-2 "C" Copy" .

# Protective Claims

3.21.3.83.15 (01-01-2015) 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. Notate "Protective Claim" in the remarks box of Form 4227. Exception: If the return is amended, do not remove from the batch. Edit CCC "G" and continue processing.

# Norway Treaty

3.21.3.83.16 (01-01-2015) Norway Treaty Accept all returns as valid when the taxpayer is claiming Article 4A (Offshore Activities) for Norway.

# Estate or Trust Returns

3.21.3.83.17 (10-30-2024) Estate or Trust Returns Estate or Trust returns may be identified by one of the following indications: The Primary Taxpayer Identification Number (P-TIN) is an EIN rather than an SSN. The name line has the name of other than an individual (such as an estate or trust). The Estate or Trust box is checked on Form 1040-NR. The entry on Form 1040-NR, line 13b is $600 (Estate), $300 (Trust), or $100 (Trust). The taxpayer quotes IRC 642(b)(2)(C) claiming $5050 on line 13b. Take the following action on a Form 1040-NR/Form 1040-NR-EZ estate or trust return: If numbered, edit Action Code "640," or If unnumbered, notate on Form 4227, "re-sort as NMF," and transship to Kansas City Service Center (KCSC).

# Form 1040-NR and Form 1040-NR-EZ General Editing Instructions

3.21.3.84 (10-30-2024) Form 1040-NR and Form 1040-NR-EZ General Editing Instructions In addition to the following subsections, see IRM 3.21.3.4 through IRM 3.21.3.12. All Form 1040-NR-EZ must be converted to Form 1040-NR. See IRM 3.21.3.86.17 for conversion instructions. Form 1040-NR, pages 3 through 5, have been updated to separate schedules beginning in TY20. Note: The instructions below also apply when processing prior year Form 1040-NR. Treat Schedule A (Sequence 7A), Schedule NEC (Sequence 7B), and Schedule OI (Sequence 7C) as pages 1, 2, and 3 of Sequence 07 when ordering the return. Arrange Schedules 1 through 3 in sequential order behind Form 1040-NR. When processing Form 1040-NR, keep Schedule A, Schedule NEC, and Schedule OI together as page 1, page 2, and page 3 of Sequence 07. Arrange Sequence 07 Schedules behind Form 1040-NR and Schedules 1 through 3. Exception: When a transcribed form or schedule is found on the back side of Form 1040-NR, it is not necessary to photocopy and move behind Schedules 1-3.

# Tax Period

3.21.3.84.1 (04-26-2022) Tax Period If the beginning and ending dates above the caption area are the same dates as Schedule OI, question G or Form 1040-NR-EZ, page 2 (question G), process the return as a full calendar year return. Taxpayers are allowed to file a return for fewer than 12 months only under one of the following conditions: An application or authority to file a short period return has been approved by the IRS (Form 1128). The return is filed under Section 1.442-1(e) of IRS Regulations. The return is filed under Section 1398 (Bankruptcy) Election or Second Short Year after the Section 1398 Election. The taxpayer dies during the current processing year and is filing to date of death. (See decedent return editing instructions in IRM 3.11.3, Individual Income Tax Returns). The return is the final return for the taxpayer. Correspond for an explanation of the taxpayer's authority to file a short period return when the beginning and ending dates above the caption area are different from Schedule OI, question G or Form 1040-NR-EZ, page 2 (question G) and none of the conditions in IRM 3.21.3.84.1 (2) apply: Correspond by preparing Form 3696-A to send the taxpayer a 319C letter. Edit Action Code "215" . Short Period returns require the following additional editing: Edit CCC "Y" and an Action Trail. Edit the ending date of the tax period, using "YYMM" format. Edit the received date when one is not already present. For additional instructions, see IRM 3.21.3.11.

# Form 1040-NR (T-Lines/T-Compute Lines)

3.21.3.84.2 (10-29-2025) Form 1040-NR (T-Lines/T-Compute Lines) In TY20 and later, Form 1040-NR may be filed with Schedule 1, Schedule 2, and Schedule 3 as supporting documents. Schedules which were previously pages 3 through 5 of Form 1040-NR have been assigned individual sequence numbers: Sequence 7A - Schedule A, 1040-NR Sequence 7B - Schedule NEC, 1040-NR Sequence 7C - Schedule OI, 1040-NR Convert all Form 1040-NR-EZ to Form 1040-NR. For conversion instructions, see IRM 3.21.3.86.17. The following are the T-lines and T-Compute lines for page 1 and page 2 of Form 1040-NR: T-Lines T-Compute Lines Tax Period Filing Status Code - Area to the left of the "Single" box. Taxpayer Name TIN Additional Information Line Street Address City/State/Province Mail Routing Code Country Name Special Processing Code (SPC) - Right margin to the right of Your identifying number Country Code - Right margin to the right of "ZIP code" Computer Condition Code (CCC) - Area to the right of the Trust box in the Filing Status area. Received Date - Empty space to the right of "Dependents (see instructions):" Dependent's Name - Dependent columns, lines 1 and 2 Dependent's TIN - Dependent columns, line 3 Dependent Relationship Code - Dependent columns, line 5 Child Tax Credit Indicator - Dependent columns, line 6 Credit for Other Dependents Indicator - Dependent columns, line 6 Dependent Positions Line 1a Line 1k Line 1z Lines 2a through 5b Lines 7a through 9 Form Processing Code (FPC) - Right margin to the right of line 7a Line 10 Line 11a Line 13a Line 15 Return Processing Code (RPC) - Bottom-left margin Action Code - Bottom-center margin Audit Code - Bottom-right margin Line 16 Line 19 Line 21 Lines 23a through 23c Line 24 Lines 25d through 26 Dotted Portion of Line 28 (TY19 and TY20 only) Lines 28 and 29 Lines 32 and 33 Line 35a Line 35b - Routing Number Line 35c - Checking and Savings Boxes Line 35d - Account Number Line 36 through 38 Third Party Designee Checkbox Third Party Designee Name Third Party Designee PIN IP PIN Preparer SSN or PTIN Preparer EIN Preparer Phone Number Preparer Code Line 1z Line 9 Line 11a Line 15 Line 21 Line 24 Line 25d Line 32 Line 33 Line 35a Line 37

# Taxpayer Identification Information

3.21.3.84.3 (01-01-2015) Taxpayer Identification Information Instruction and information in this subsection include: Caption Information Taxpayer Identification Number Name and Additional Information Line Mailing Address Filing Status

# Taxpayer Identification Number

3.21.3.84.3.1 (01-01-2015) Taxpayer Identification Number For complete instructions, see IRM 3.21.3.12.2.

# Primary Taxpayer Identification Number (P-TIN)

3.21.3.84.3.1.1 (01-01-2019) Primary Taxpayer Identification Number (P-TIN) If an EIN (format 00-0000000) is used instead of a TIN (format 000-00-0000), the return should be considered a fiduciary return. Take the following actions on a Form 1040-NR or Form 1040-NR-EZ fiduciary return: If numbered, edit Action Code "640" . If unnumbered, notate on Form 4227"re-sort as NMF" and transship to Kansas City Service Center (KCSC). Exception: If an EIN is used and there is no indication of Estate or Trust, examine the Employer Identification Number on Form W-2 and Withholding Agent's identification number on Form 8805, Form 8288-A, or Form 1042-S. If the number matches the EIN in the caption, circle the EIN in the caption, and continue processing. For additional instructions, see IRM 3.21.3.12.2.1.

# Name and Additional Information Line

3.21.3.84.4 (01-01-2015) Name and Additional Information Line For complete instructions, see IRM 3.21.3.12.3.

# Name Line

3.21.3.84.4.1 (01-01-2015) Name Line Only one name is allowed. Reminder: If two names appear on the name line, this could be an indication of Article XXV (see IRM 3.21.3.83.5). If two names are present and only one income, circle out the name and TIN (if present) of the taxpayer with no income. If two names are present and both have income, correspond for separate Form 1040-NR. For additional instructions, see IRM 3.21.3.12.3.1.

# Country Name

3.21.3.84.5 (01-01-2015) Country Name For complete instructions, see IRM 3.21.3.12.6.

# Perfecting Form 1040-NR Country Codes

3.21.3.84.5.1 (01-04-2021) Perfecting Form 1040-NR Country Codes The Country Code is a two-alpha character that is designed to identify treaty countries whose residents are entitled to refunds of U.S. Withholding on U.S. source income. Edit the appropriate two-alpha character Country Code in the right margin to the right of the "City, town, or post office, state, and ZIP code" line. See Exhibit 3.21.3-7 and Figure 3.21.3-30. Figure 3.21.3-30 This figure represents the top half of Form 1040-NR (page 1):The taxpayer name is Vittorio Pioverna.The TIN is 000-00-7161.The address is 1016 Corso Ticino (which is underlined in red) in 00132 Rome, Italy. The country of Italy has a slash edited in red before and after the country name, along with a dollar sign.The block letters of IT are edited in red in the right margin from the ZIP code to indicate the country code for Italy.Filing status code 1 is edited in red to the left of the filing status boxes since the single box is checked by the taxpayer.A second graphic represents the top portion of Schedule OI with no editing. Please click here for the text description of the image. Examine Form 1040-NR or Form 1040-NR-EZ to determine the country in which the taxpayer was a permanent resident. Use the priority listing below to determine the country code: Schedule OI, line B (Form 1040-NR-EZ, page 2, line B) (See Figure 3.21.3-31). Schedule OI, line A (Form 1040-NR-EZ, page 2, line A) Address in the caption area of Form 1040-NR or Form 1040-NR-EZ (See Figure 3.21.3-30.) Exception: "Bulk/clean" filed Form 1040-NR or Form 1040-NR-EZ and Form 8822 is attached, use the country of the taxpayer's old address. Review any attachments Note: If multiple countries are present in a location above as you go through the priority list, edit the first with a listed country code. Edit Country Code "XX" (see Figure 3.21.3-32) if: The country in which the taxpayer was a permanent resident cannot be determined The country in which the taxpayer was a permanent resident is not listed in Exhibit 3.21.3-7 Only a U.S. address is listed on Form 1040-NR (including attachments) Caution: Treat all Form 1040-NR returns as frivolous when the taxpayer indicates that they live in the "Republic of " and the country is one of the U.S. 50 states. Figure 3.21.3-31 This figure contains two (2) graphics. The first graphic represents the top portion of Form 1040-NR (page 1):The name is Saoirse Shannon.The TIN is 000-00-7430.The address is 18 Seagull Way in Charleston, WV, and the ZIP code is 25301.The block letters of EI are edited in red in the margin to the right of the ZIP code to indicate the country code is for Ireland. The first priority in determining the taxpayer's country of permanent residence is looking to Schedule Other Information (OI), question B.Filing status code 1 is edited in red to the left of the filing status boxes since the single box is checked by the taxpayer.The second graphic represents the top half of Schedule OI. The question B, In what country did you claim residence for tax purposes during the tax year, was answered Ireland; therefore, EI is edited as the country code based on the priority order. Please click here for the text description of the image. Figure 3.21.3-32 This figure contains two graphics. The first graphic represents the top portion of Form 1040-NR, page 1:The taxpayer name is Mickey Cobra.The TIN is 000-00-9306.The address is 457 Gator Way in New Orleans, LA, and the ZIP code is 70113. There is no country listed in the entity area. A text box states: No country found on attachments.The entity address is domestic; therefore, XX is edited in red in the margin to the right of the ZIP code.Filing status code 1 is edited in red to the left of the filing status boxes since the single box is checked by the taxpayer.The second graphic is a Schedule OI with no fields completed. Please click here for the text description of the image.

# Filing Status Code (FSC)

3.21.3.84.6 (10-30-2024) Filing Status Code (FSC) A Filing Status Code must be edited on Form 1040-NR and is edited to the left of the "Single" filing status box. For every Form 1040-NR return, edit a Filing Status Code of "1" , "3" , or "5" . Edit the Filing Status Code (FSC) using the table below: FS Box Marked And Then Single Edit FSC "1" . Married filing separately (MFS) Edit FSC "3" . Qualifying surviving spouse (QSS) Both of the following conditions are present: No spousal date of death, or date of death was within the two years before the tax year of the return, AND Based on edited Country Code, taxpayer is a resident of Canada, Mexico, or South Korea, or is a student or business apprentice from India Edit FSC "5" . Qualifying surviving spouse (QSS) Any of the following conditions is present: Spousal date of death was more than two years before the tax year of the return, Spousal date of death was within the tax year of the return, Spousal date of death was after the tax year of the return, OR Based on edited Country Code, taxpayer is not a resident of Canada, Mexico, or South Korea, or is not a student or business apprentice from India Edit FSC "1" . Multiple boxes marked or no boxes marked Spouse is not listed Edit FSC "1" . Multiple boxes marked or no boxes marked Spouse is listed Edit FSC "3" . Edit CCC "Q" when the edited filing status is 5, there are no dependents listed on the return, and a qualifying non-dependent is listed: In the filing status section of the return, On Form 2441, or On Form 8814.

# Dependents

3.21.3.84.7 (01-01-2021) Dependents For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Dependent's Name Control and TIN

3.21.3.84.7.1 (01-01-2024) Dependent's Name Control and TIN For Form 1040-NR, up to four allowable dependents' name controls and TINs can be transcribed. Dependents are restricted by country of residence. To determine if dependents are allowed, see the table below: Country of Residence Children* Other Dependents* Canada Yes Yes Mexico Yes Yes India (Students and business apprentices only) Note: Use the occupation area, Schedule OI, Form 8843, attachments, and/or Form 1040-NR-EZ, page 2 to make a determination. Yes Yes South Korea Yes, if lived with parents in U.S. No U.S. Nationals (regardless of country of residence) Yes Yes All Other Countries No No See IRM 3.11.3, Individual Income Tax Returns. Every allowable dependent must have a name control and TIN. If missing, edit the name control(s) for each dependent in row 2. Circle out the column header for any dependent that does not qualify based on the country of residence. See IRM 3.21.3.84.7.1 (2) above. If the spouse's name is present in the Dependents area, circle out the column header. All other countries are not allowed to claim dependents. If a dependent is claimed, circle out the column header of the applicable dependent. For additional instructions, see IRM 3.11.3.13, Dependents.

# Dependent Relationship Code

3.21.3.84.7.2 (10-29-2025) Dependent Relationship Code The Dependent Relationship Code is a one position, numeric code. For TY25 and later, edit the Dependent Relationship Code in row 5 for each qualifying child dependent. Relationship Code No relationship indicated, or determination cannot be made 0 Son or daughter 1 Stepchild 2 Foster Child 3 Grandchild 4 Nephew, niece, or sibling's child 5 Brother, sister, or sibling 6 Half-brother, half-sister, or half-sibling 7 Stepbrother, stepsister, or step sibling 8

# Income Effectively Connected with U.S. Trade/Business - Lines 1a through 9

3.21.3.84.8 (01-01-2021) Income Effectively Connected with U.S. Trade/Business - Lines 1a through 9 The following subsections contain information pertaining to perfection of lines 1a through 9 on Form 1040-NR. Edit amounts on lines 1a through 9 in dollars only.

# Line 1a - Total Amount from Form(s) W-2, Box 1

3.21.3.84.8.1 (10-30-2024) Line 1a - Total Amount from Form(s) W-2, Box 1 Use the table below for situations that require or may require editing income to Form 1040-NR, line 1a: If And Then Line 1a is blank Form(s) W-2 are attached Edit total wages from all box(es) 1 of Form(s) W-2 to line 1a, and delete if found elsewhere. Note: Do not include income excluded by a valid tax treaty. Exception: Leave the income if found on Schedule C if the taxpayer is a minister or the statutory employee box is checked on Schedule C. Form W-2 income is reported It is reported anywhere besides line 1a (e.g., Schedule C) Delete the income where found, and edit to line 1a. Exception: Leave the income if found on Schedule C if the taxpayer is a minister or the statutory employee box is checked on Schedule C. Form 1042-S is attached BOTH of the following apply: Income has not been reported on Form 1040-NR, page 1, Schedule 1, page 1, or Schedule NEC, and Income should be reported on Form 1040-NR, page 1, Schedule 1, page 1, or Schedule NEC Note: Use Exhibit 3.21.3-2, Form 1042-S Income Codes, to determine if and where income should be reported. Edit the income to the appropriate line. Note: If the income can be reported on either Form 1040-NR, page 1 or Schedule 1, page 1, AND Schedule NEC, Schedule NEC will take priority. Sick Pay is reported It is reported anywhere besides line 1a Delete the income where found, and edit to line 1a. Strike Pay/Benefits are reported They are reported anywhere besides line 1a Delete the income where found, and edit to line 1a. Use the table below for editing misplaced income to lines other than Form 1040-NR, line 1a: If And Then Disability Pension income is reported as indicated by: Form 1099-R with distribution code 3 in box 7, Notation on Form 1099-R, or Any other indication that disability pension is included on the return It is reported anywhere other than line 1h, 4a, or 4b If there is a statement indicating treatment as a retirement pension, delete where found and edit to line 5b, if not already reported there. Note: If Disability Pension is identified on line 5a or 5b, take no action. Otherwise, delete where found and edit to line 1z. Form 1042-S, Pension income with Income Code 15 (Income Code 14 for TY14 and prior), is reported It is reported anywhere other than on Schedule NEC or Form 1040-NR, line 5b Delete where found, and see Schedule NEC instructions at IRM 3.21.3.84.23. Form 1042-S is attached BOTH of the following apply: Income has not been reported on Form 1040-NR, page 1, Schedule 1, page 1, or Schedule NEC, and Income should be reported on Form 1040-NR, page 1, Schedule 1, page 1, or Schedule NEC Note: Use Exhibit 3.21.3-2, Form 1042-S Income Codes, to determine if and where income should be reported. Edit the income to the appropriate line. Note: If the income can be reported on either Form 1040-NR, page 1 or Schedule 1, page 1, AND Schedule NEC, Schedule NEC will take priority. Gambling income is reported It is reported anywhere other than on Schedule NEC Delete where found, and see IRM 3.21.3.84.23.1. IRC 871, IRC 872, or IRC 893 is notated anywhere See IRM 3.21.3.84.19.8. Nontaxable income is reported, such as: Accident and health insurance proceeds "Black lung" benefits Casualty insurance and other reimbursements Child Support Damages awarded for physical injury or sickness Federal Employees' Compensation Act (FECA) payments Interest on state or local government obligations Public Aid Supplemental Security Income (SSI)/SSI Disability Tax Sheltered Annuities Temporary Assistance for Needy Families (TANF) VA Benefits/Payments Workforce Payments If it is reported on line 1a, delete from line 1a, or If it is reported on lines 1b through 1h, delete from line 1z. Railroad Retirement Benefits are reported If income is from a Form RRB-1099R: Edit the income to line 5b, If the income is reported on line 1a, delete from line 1a, and If the income is reported on lines 1b through 1h, delete from line 1z. If income is from a Form RRB-1042S: If the income is reported on line 1a, delete from line 1a, If the income is reported on lines 1b through 1h, delete from line 1z, and See IRM 3.21.3.83.11. Scholarship/Fellowship Grant from a Form 1042-S with Income Code 16 (Income Code 15 for TY14 and prior), a Form 1098-T, or a statement from an educational institution is reported It is reported anywhere besides Schedule 1, line 8r Delete where found, and edit to Schedule 1, line 8r. Note: Edit RPC "G" if line 1a has been adjusted to zero and withholding is present on line 25g. Self-Employment income is reported It is reported anywhere besides Schedule 1, line 8z or Schedule C Delete where found, and edit to Schedule 1, line 9. Social Security income is reported If income is from a Form SSA-1042S: If it is reported on line 1a, delete from line 1a, If it is reported on lines 1b through 1h, delete from line 1z, and See IRM 3.21.3.83.11. Supplemental Unemployment Benefits under the Trade Act of 1974 (Sub-Pay TRA) are reported Repayment is indicated on Schedule 1, line 24e or 24z Delete income where found, and delete repayment amount from Schedule 1, line 25. Treaty-Exempt income is reported as taxable Delete treaty-exempt income where reported as taxable, and edit to line 1k, if not already there. Note: If all income on the return has been exempted AND withholding is present on line 25d or 25g, edit RPC "G" . Unemployment Compensation is reported It is reported anywhere besides Schedule 1, line 7 Delete where found, and edit to Schedule 1, line 7.

# Line 1b - Household Employee Wages (HSH) (Not Transcribed)

3.21.3.84.8.2 (01-01-2023) Line 1b - Household Employee Wages (HSH) (Not Transcribed) If an amount is present on line 1b, edit SPC "E" .

# Line 1e - Taxable Dependent Care Benefits (DCB) - Form 2441 (Not Transcribed)

3.21.3.84.8.3 (01-01-2023) Line 1e - Taxable Dependent Care Benefits (DCB) - Form 2441 (Not Transcribed) If an amount is present on line 1e, Form 2441 must be attached. If missing, correspond for Form 2441.

# Line 1f - Employer-Provided Adoption Benefits - Form 8839 (Not Transcribed)

3.21.3.84.8.4 (01-01-2023) Line 1f - Employer-Provided Adoption Benefits - Form 8839 (Not Transcribed) If an amount is present on line 1f, Form 8839 must be attached. If missing, correspond for Form 8839.

# Line 1g - Wages - Form 8919 (Not Transcribed)

3.21.3.84.8.5 (01-01-2023) Line 1g - Wages - Form 8919 (Not Transcribed) If an amount is present on line 1g, Form 8919 must be attached. If missing, correspond for Form 8919.

# Line 1k - Total Income Exempt by Treaty (from Schedule OI, Item L)

3.21.3.84.8.6 (02-07-2023) Line 1k - Total Income Exempt by Treaty (from Schedule OI, Item L) If line 1k contains an amount for income other than effectively connected income (found in Exhibit 3.21.3-9 or on Schedule NEC, such as gambling, pension, interest, dividends or Social Security, etc.) excluded by treaty, "X" line 1k. Note: If Form 8833 is attached, examine the type of income to determine whether it is non-effectively connected income. If the taxpayer does not answer Schedule OI, item L or does not provide sufficient information elsewhere on the return or on an attachment to permit the verification of the tax treaty benefit claimed (using the tax treaty table at Exhibit 3.21.3-10), correspond for any missing information. The taxpayer must identify all of the following: The name of the foreign country of which the taxpayer is a resident and whose tax treaty with the U.S. provides the exempt status. The treaty article number that allows the exemption. Note: If the treaty country identified in Schedule OI, item L different than the country of residence, do not accept the treaty as valid. The amount of the "exempt" income during the tax year. Note: In addition, if the taxpayer claims the benefits of the Government Service treaty article listed in Exhibit 3.21.3-14 verify that the taxpayer holds an A-1 or A-2 visa and refer to the Exhibit to determine if the claim is valid. Note: If the taxpayer cites a treaty listed in IRM 3.21.3.84.8.14 (8), "X" line 1k. Note: Indication of Exchange Visitor, see IRM 3.21.3.83.9. Consider all paragraphs and subparagraphs of a treaty article to be valid when Exhibit 3.21.3-10 lists only the article number. If the taxpayer only lists the article number, consider the treaty to be valid when Exhibit 3.21.3-10 lists any part of the treaty article. If the taxpayer cites Article IV or Article 4, see IRM 3.21.3.83.13. If taxpayer cites Article 4A, see IRM 3.21.3.83.16. If the taxpayer cites Article 21 (2) for India with the standard deduction amount, "X" line 1k. If after research, it is found that the claimed treaty exemption is invalid, follow the instructions below: Edit the amount entered on line 1k EITHER to Form 1040-NR, line 1a, 1z, or 2b through 7a, OR to Schedule 1, line 1, 3 through 7, 8r, or 9, as appropriate for the type of income, if not already entered by the taxpayer. If unable to determine the appropriate line, edit the amount to Form 1040-NR, line 1a. Note: If the line to which income is being edited already has an entry, "X" the entry present and include the amount from line 1k in the total edited to the left of the deleted entry. If the taxpayer reports the amount on another line besides line 1k, "X" the amount EITHER on Form 1040-NR, line 1a, 1z, or 2b through 7a, OR on Schedule 1, line 1, 3 through 7, 8r, 9, 11 through 18, 20 through 23, or 25, as appropriate. "X" line 1k. Do Not adjust or compute lines 9 and 11a. If the taxpayer's claim is valid per Exhibit 3.21.3-10, follow the instructions in the table below: If the income and/or exclusion: And Then Is found on other than line 1k Has not been included with other entries "X" the income and/or exclusion. Note: Do not adjust or compute lines 9 and 11a. Is found on other than line 1k Has been included with other entries "X" and adjust where found. Exception: Do not"X" or recompute lines 9 and 11a. Is not already entered by the taxpayer on line 1k Edit the allowable amount per the treaty to line 1k. Is found on line 1k And the taxpayer has exceeded the treaty limit "X" line 1k and edit the allowable amount per the treaty to line 1k and edit the exceeded amount to line 1a. See Figure 3.21.3-33. Note: Do not adjust or compute lines 9 and 11a. Is found on line 1k Form W-2 and Form 1042-S are present for the same employer Add Form W-2 and Form 1042-S income amounts together then subtract the valid treaty amount. Ensure the remainder is included in line 1a. The following footnotes in Exhibit 3.21.3-10 must be used when validating treaty exemption claims. If the amount of income of that type exceeds the Maximum Amount of Compensation listed in Exhibit 3.21.3-10, the treaty is not valid. "X" line 1k and add the exempted amount to line 1a. Example: A resident of Australia may claim an exemption up to $10,000 under Article 17 for public entertainment income. The table has footnote "25" attached to the maximum amount on the table indicating the exemption isn't allowed when the total Article 17 income is over $10,000. If the exempted amount is over $10,000 or Form 1042-S with Income Code 42 is attached with gross income over $10,000, the treaty is invalid. Footnote Explanation 25 Exemption does not apply if gross receipts (including reimbursements) exceed this amount. 26 Exemption does not apply if net income exceeds this amount. 28 Exemption does not apply if compensation (or gross income from the Philippines and Romania) exceeds this amount. 46 Exemption does not apply if gross receipts exceed this amount. If the only significant entry on Form 1040-NR is line 1k, edit CCC "B" . Figure 3.21.3-33 This figure contains two graphics. The first graphic is Form 1040-NR (page 1):The taxpayer is Britta Mundo.The TIN is 000-00-3864.The address is Camino de Darro, 103, Apartment 3D (underlined in red as the AIL) in Barcelona, Spain, 08008. The country of Spain has a slash edited in red before and after the country name, along with a dollar sign.A country code of SP is edited in the margin to the right of the ZIP code.The filing status box is checked for single, and 1 is edited in red to the left of the filing status boxes.Line 1a is 2000.Line 1k is 12,000.There is 400 on lines 3b, 9, and 11a.The second graphic is Schedule OI showing the taxpayer claiming a treaty - Article 19 for 12,000 from Spain. There is a text box stating: Spain Treaty Article 19 is limited to $10,000 per year.Page 1 now has to be adjusted to exempt the limited treaty amount. The amount on line 1k is X-ed and adjusted to 10000 edited in red. The excess 2000 is edited to line 1z in red.Line 1z is computed and edited in red as 2000.The second graphic is Schedule OI:The TIN is 000-00-3864.In the table on line 1, only one row has been completed. The country in column (a) is Spain. The Tax treaty article in column (b) is 19. The Number of months claimed in prior tax years in column (c) is 0. The Amount of exempt income in current tax year in column (d) is $12,000.The total in item 1e is 12,000There is a text box which reads: Spain Treaty Article 19 is limited to $10,000 per year.Box M1 is checked. Please click here for the text description of the image. If the taxpayer claims the following on line 1k, use the IRM reference listed and follow the instructions: The taxpayer claims exemptions on Form 1042-S with Exemption Code 04 - see IRM 3.21.3.83. The taxpayer notates IRC 871, IRC 872, or IRC 893 or lists 871, 872, or 893 as a treaty article number, "X" line 1k and see IRM 3.21.3.84.19.8.

# Line 1z - Total Wages

3.21.3.84.8.7 (10-30-2024) Line 1z - Total Wages Compute and edit line 1z when it is blank, dash, or zero and there are any entries on lines 1a through 1h.

# Line 2a - Tax Exempt Interest

3.21.3.84.8.8 (01-01-2021) Line 2a - Tax Exempt Interest If it can be determined that the amount on line 2a is bank interest, "X" the amount.

# Line 2b - Taxable Interest

3.21.3.84.8.9 (01-01-2021) Line 2b - Taxable Interest Edit all taxable interest income from assets effectively connected with a U.S. trade or business. Interest paid to nonresident aliens from U.S. bank accounts is not taxable. If a supporting statement indicates U.S. bank interest, "X" the line 2b bank interest entry. Note: Schedule B is not valid as a supporting statement for interest. Reminder: "X" Schedule B when attached to a Form 1040-NR. If bank interest is entered on line 2b and excluded on any of the T-lines on Schedule 1, or on Form 1040-NR, Page 1, "X" both entries.

# Line 3a - Qualified Dividends

3.21.3.84.8.10 (01-01-2021) Line 3a - Qualified Dividends Reserved

# Line 3b - Ordinary Dividends

3.21.3.84.8.11 (01-01-2021) Line 3b - Ordinary Dividends Reserved

# Lines 4a and 4b - IRA Distributions and Taxable Amount

3.21.3.84.8.12 (10-30-2024) Lines 4a and 4b - IRA Distributions and Taxable Amount "X" the amount on line 4a when lines 4a and 4b are the same or there is a difference of less than $1. Take no action when 4a has an entry and line 4b is blank.

# Lines 5a and 5b - Total Pensions and Annuities and Taxable Amount

3.21.3.84.8.13 (10-30-2024) Lines 5a and 5b - Total Pensions and Annuities and Taxable Amount Nonresident aliens with pension income supported by Form 1099-R must report such income as either "effectively connected" on line 5b, Form 1040-NR, or "non-effectively connected" on Schedule NEC. If a Form 1099-R (pension income) is attached to a return and the income is not reported on either line 5b, Form 1040-NR, or Schedule NEC, edit the taxable amount of the Form 1099-R to line 5b, Form 1040-NR. Nonresident aliens with pension income supported by Form 1042-S, Income Code 15 (Income Code 14 for TY14 and prior) must report such income as either "non-effectively connected" on Schedule NEC, or "effectively connected" on line 5b, Form 1040-NR. If a Form 1042-S showing pension income is attached to a return and the income is not reported on either Schedule NEC or line 5b, Form 1040-NR, calculate the tax on the pension income using the applicable rate in Exhibit 3.21.3-9. Adjust line 23a, Form 1040-NR to include the tax calculated on the pension income, if not already included by the taxpayer. Do not adjust or compute line 24. "X" the amount on line 5a when lines 5a and 5b are the same or if there is a difference of less than $1. Take no action when line 5a has an entry and line 5b is blank. Do not move pension income from line 5b to line 1a. Move the gross and taxable amounts of Railroad Retirement Benefits (Form RRB-1099-R) to line 5a and 5b when claimed elsewhere on the return.

# Line 7a - Capital Gain or Loss (Schedule D)

3.21.3.84.8.14 (10-30-2024) Line 7a - Capital Gain or Loss (Schedule D) Edit RPC "T" when all of the following apply: There is a positive amount greater than $1 on line 7a. Schedule D is not attached. The line 7b Schedule D not required box is checked. When the line 7b Schedule D not required box is marked and a negative entry is present on line 7a and no Schedule D is attached, follow the instructions below (i.e., treat a negative amount on line 7a as if the line 7b Schedule D not required checkbox is not marked). When an amount is present on line 7a, Schedule D is not attached, and the line 7b Schedule D not required checkbox is not checked: If And Then A document from which a Schedule D can be dummied is attached Column (h) can be determined Dummy a Schedule D. Edit short-term gains/losses to line 7a and long-term gains/losses to line 15. Exception: Do not dummy a Schedule D if corresponding for other missing return items. Instead, include the request for Schedule D in the correspondence to the taxpayer. No document is attached from which a Schedule D can be dummied ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Dummy the amount to line 7 Schedule D. No document is attached from which a Schedule D can be dummied ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Dummy the amount to line 7 Schedule D. No document is attached from which a Schedule D can be dummied ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Correspond for Schedule D. If income reported from Insurance Companies Demutualization (reported on Form 1099-B) is present, but entered on other than line 7a, edit that amount to line 7a, and dummy a Schedule D. If Form 8288-A is attached, verify that the amount in box 3 is reported on one of the following: Schedule D, column (d) Schedule E, (page 2 part II) Form 4797, column (d) Form 4684, Section B If And Then The amount in box 3 Form 8288-A is reported Take no action. The amount in box 3, Form 8288-A is not reported Lines 16 - 18, Schedule NEC or a supporting statement includes the amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: Ensure all T-lines are edited. See IRM 3.21.3.24. Exception: Do not dummy or correspond for a Schedule D if the taxpayer resides in one of the countries listed in IRM 3.21.3.84.8.14 (8) below. The amount in box 3 Form 8288-Ais reported on lines 16 - 18, Schedule NEC ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Correspond for Form 4797. The amount in box 3, Form 8288-A is not reported Schedule D cannot be dummied Correspond for Schedule D. Exception: Do not correspond for a Schedule D if the taxpayer resides in one of the countries listed in IRM 3.21.3.84.8.14 (8) below. Correspond using the following literal when using Form 9143: Complete Schedule D to report the amount realized from the sale of U.S. real property interests as reported in box 3, of your Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons. When using Form 13900, mark paragraph 4. If the taxpayer claims a capital gains exemption under IRC 871 and they were present in the U.S. for less than 183 days, (see Schedule OI, item H or attachments for determination) take the actions below: Edit the capital gains to line 7a (if not already included). Edit the exempt amount to Schedule 1, line 9 as a negative amount (if not already included). Note: The instructions also apply if the number of days is blank. If the taxpayer claims a capital gains exemption under IRC 871 and they were present in the U.S. for 183 days or more, take the actions below: Edit the capital gains to line 7a (if not already included). "X" exemption if found on Form 1040-NR, Page 1, or if found on Schedule 1, "X" line 9 or line 25, as appropriate. If the taxpayer resides in any of the countries listed below, capital gains on personal property are exempt. However, if the taxpayer resides in one of the countries listed below and reports capital gains, accept the taxpayer's entry. Do not "X" the line 7a amount or Schedule D. Country Article Number Austria 13 Bangladesh 13 Barbados 13 Belgium 13 Bulgaria 13 Canada XIII China 12 Chile (see note below) 13 Commonwealth of Independent States (Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan and Uzbekistan) III Cyprus 16 Czech Republic 13 Denmark 13 Egypt 14 Estonia 13 Finland 13 France 13 Germany 13 Hungary (see note below) 12 Iceland 16 India 13 Indonesia 14 Ireland 13 Israel 15 Italy 13 Jamaica 13 Japan 16 Kazakhstan 13 Republic of Korea 16 Latvia 13 Lithuania 13 Luxembourg 14 Mexico 13 Morocco 13 Netherlands 14 New Zealand 13 Norway 12 Philippines 14 Poland 14 Portugal 14 Romania 13 Russia (Russian Federation) (see note below) 19 Slovak Republic (Slovakia) 13 Slovenia 13 South Africa 13 Spain 13 Sri Lanka 13 Sweden 13 Switzerland 13 Tunisia 13 Turkey 13 Ukraine 13 United Kingdom (including Great Britain, England, Northern Ireland, Scotland, and Wales) 13 Venezuela 13 Note: The U.S.-Chile income tax treaty entered into effect with respect to taxes withheld at source paid or credited on or after February 1, 2024, and for other taxes for taxable periods beginning on or after January 1, 2024. Under the treaty, gains derived by a resident of Chile from the alienation of personal property are generally exempt from U.S. taxation. However, certain gains from the alienation of shares or other rights or interests in the capital of a U.S. company are subject to tax by the United States at not more than a 16% rate. See Article 13 of the U.S. Chile tax treaty, paragraphs (5), (6), and (7). Note: The U.S.-Hungary tax treaty was terminated in 2023 and ceased to have effect with respect to U.S. withholding tax after January 1, 2024. Beginning in 2024, it may not be relied upon in taxable years to exclude U.S. source capital gains from tax. Note: The U.S.-Russia tax treaty is suspended for these taxes as of August 16, 2024. It may not be relied upon after that date to exclude U.S. source capital gains from tax If the taxpayer exempts capital gains and does not meet the criteria in IRM 3.21.3.84.8.14 (6), IRM 3.21.3.84.8.14 (7), or IRM 3.21.3.84.8.14 (8) above, edit the exempted capital gains to line 7a from where the taxpayer reported the amount.

# Line 8 - Other Income From Schedule 1, Line 10

3.21.3.84.8.15 (01-01-2024) Line 8 - Other Income From Schedule 1, Line 10 If there is an amount entered on Form 1040-NR, line 8, Schedule 1 must be attached. If not attached, correspond for Schedule 1. If corresponding for Schedule 1 for entry on line 8 and line 10, correspond for only one missing Schedule 1. Use the first entry amount and line number on the return. Exception: If a Schedule 1 can be dummied from attachments, do not correspond for a Schedule 1 unless already corresponding for other missing information. See paragraph (2) below. Do not correspond if it can be determined that line 8 on the Form 1040-NR has been used as a subtotal line. See IRM 3.11.3, Individual Income Tax Returns, for instructions on dummying Schedule 1.

# Line 9 - Total Gross Effectively Connected Income (GECI)

3.21.3.84.8.16 (10-30-2024) Line 9 - Total Gross Effectively Connected Income (GECI) If the only entry on lines 1a through 8 is on line 4a or 5a and this amount is equal to line 9, edit the line 9 amount to line 4b or 5b (as appropriate). Use the table below to determine editing instructions when there is an amount on line 9, lines 1a through 8 are blank, and no Schedule C, Schedule D, Schedule E, or Schedule F is attached: If the amount on line 9 is Then A positive or negative amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Correspond for an explanation of line 9. A positive or negative amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Edit the amount to Schedule 1, line 9. Compute and edit line 9 when it is blank, dash, or zero and there are entries leading to a total. Do not include the following: Line 1k Line 2a Line 3a Line 4a Line 5a Exception: Do not compute line 9 if adjusting lines 1a through 8.

# Adjustments to Income - Lines 10 and 11a

3.21.3.84.9 (01-01-2024) Adjustments to Income - Lines 10 and 11a The following subsections contain information pertaining to lines 10 and 11a on Form 1040-NR.

# Line 10 - Adjustments to Income from Schedule 1, Line 26

3.21.3.84.9.1 (01-01-2024) Line 10 - Adjustments to Income from Schedule 1, Line 26 If there is an amount entered on line 10, Schedule 1 must be attached. If not attached, see IRM 3.11.3, Individual Income Tax Returns, for instructions on dummying Schedule 1 or corresponding.

# Line 11a - Adjusted Gross Income (Total Adjusted Gross Effectively Connected Income)

3.21.3.84.9.2 (10-30-2024) Line 11a - Adjusted Gross Income (Total Adjusted Gross Effectively Connected Income) Compute and edit line 11a when it is blank, dash, or zero and there are entries leading to a total. Exception: Do not compute line 11a if adjusting lines 1a through 8. Edit RPC "J" when line 11a is blank, dash, zero, or edited to be blank and line 23a has a significant entry.

# Tax Computation - Lines 12 Through 18

3.21.3.84.10 (01-01-2023) Tax Computation - Lines 12 Through 18 The following subsections contain information pertaining to perfection of lines 12 through 18 on Form 1040-NR.

# Line 12 - Itemized Deductions/Standard Deduction

3.21.3.84.10.1 (10-30-2024) Line 12 - Itemized Deductions/Standard Deduction For Form 1040-NR, the standard deduction is not allowed. If the standard deduction is claimed and a completed Schedule A is attached, "X" the Schedule A unless the exception below applies. Exception: Residents of India who are students or business apprentices are allowed to claim the standard deduction (Article 21 {2}). Schedule A (Form 1040-NR) must be attached. See IRM 3.21.3.84.22. If the taxpayer is a student from India and is claiming a treaty to use the standard deduction but the amount is less than the standard deduction, accept the taxpayer figures. To determine if the taxpayer is a student or business apprentice, review: The occupation area of Form 1040-NR. Lines E and F of Schedule OI for visa J-1, F-1, or H-1 that was previously F-1. Form 8843 with entries in Part III. Other attachments to the return. If the taxpayer claims a current year standard deduction amount from the table below on line 12, a Schedule A is blank or not attached, and you can determine the taxpayer was a resident of India and a student or business apprentice, then dummy a Schedule A by editing the line 12 amount on lines 7 and 8 of Schedule A. Filing Status Standard Deduction Additional Standard Deduction 1 (65+ or blind) Additional Standard Deduction 2 (65+ and blind) Single $15,750 $17,750 $19,750 Married filing separately (MFS) $15,750 $16,17,350 $18,950 Qualifying Surviving Spouse (QSS) $31,500 $33,100 $34,700 If an amount is present on line 12, Schedule A (Form 1040-NR) (Sequence 7A) must be present. If Schedule A (Form 1040-NR) is missing and cannot be dummied from attachments, correspond. Exception: If you can determine that the taxpayer is only claiming state and/or local taxes, dummy Schedule A (Form 1040-NR) by editing the line 12 amount on lines 1a and 8, and do not correspond unless corresponding for other missing information. Exception: If line 12 is a standard deduction amount from the table in IRM 3.21.3.84.10.1 (4) and the taxpayer was not a resident of India and a student or business apprentice, do not dummy or correspond for Schedule A. Exception: When a prior year standard deduction amount is claimed on line 12 on a current year return, do not dummy or correspond for Schedule A. For residents of India who are students or business apprentices, do not correspond for a missing Schedule A if line 12 equals the sum of line 15 on an attached Form 4684 plus a standard deduction amount from the table in IRM 3.21.3.84.10.1 (4). Instead, dummy a Schedule A by editing the line 12 amount on lines 7 and 8 of Schedule A.

# Line 13a - Qualified Business Income Deduction (Form 8995 or Form 8995-A)

3.21.3.84.10.2 (01-01-2021) Line 13a - Qualified Business Income Deduction (Form 8995 or Form 8995-A) For TY19 and later, if an amount is claimed on line 13a, Form 8995 or Form 8995-A must be attached. If missing, correspond for Form 8995-A.

# Line 15 - Taxable Income

3.21.3.84.10.3 (01-01-2021) Line 15 - Taxable Income Compute and edit line 15 when it is blank, dash, zero, or illegible and there are entries leading to a positive total.

# Line 16 - Tax (on Effectively Connected Income)

3.21.3.84.10.4 (01-01-2023) Line 16 - Tax (on Effectively Connected Income) If Form 4972 box is checked, Form 4972 must be attached. Correspond, if missing. If Form 8814 box is checked, Form 8814 must be attached. Correspond, if missing. If line 15 contains a positive entry and the taxpayer indicates "Exempt" or "Tax Treaty" on line 16, verify following line 1k procedures, and if valid, edit the excluded amount to line 1k. See IRM 3.21.3.84.8.6. Note: If the explanation of tax treaty benefits is not valid, do NOT edit CCC "B" . If all income on line 15 is determined to be not taxable,"X" the taxpayer's entry on line 16 and edit CCC "B" if applicable.

# Credits - Lines 19 through 21

3.21.3.84.11 (01-01-2021) Credits - Lines 19 through 21 Do not correspond for missing schedules or forms to support entries on lines 19 through 21 when line 15 of Form 1040-NR is (or can be determined to be) zero or a negative amount. Instead, "X" the unsupported credit amount and adjust the total on line 21.

# Line 19 - Child Tax Credit or Credit for Other Dependents

3.21.3.84.11.1 (01-01-2023) Line 19 - Child Tax Credit or Credit for Other Dependents Reserved

# Line 20 - Amount from Schedule 3, Line 8

3.21.3.84.11.2 (01-01-2021) Line 20 - Amount from Schedule 3, Line 8 If an amount is present on line 20, Schedule 3 must be attached. If Schedule 3 is not attached, see IRM 3.11.3, Individual Income Tax Returns, for instructions on dummying or corresponding.

# Line 21 - Total Statutory Credits

3.21.3.84.11.3 (10-30-2024) Line 21 - Total Statutory Credits Compute and edit line 21 when it is blank, dash or zero by adding lines 19 and 20.

# Other Taxes - Lines 23a Through 24

3.21.3.84.12 (01-01-2015) Other Taxes - Lines 23a Through 24 The following subsections contain information pertaining to Form 1040-NR, lines 23a through 24.

# Line 23a - Not Effectively Connected Income Tax

3.21.3.84.12.1 (10-30-2024) Line 23a - Not Effectively Connected Income Tax If blank, and an amount is present on Schedule NEC, line 15, edit the Schedule NEC, line 15 amount to line 23a. Follow Schedule NEC instructions (see IRM 3.21.3.84.23) when ALL of the following apply: Line 23a is blank Form 1042-S is present Form 1042-S income has not been reported on Form 1040-NR, page 1, Schedule 1, page 1 or Schedule NEC Income should be reported on Schedule NEC Note: If the Form 1042-S income can be reported on Form 1040-NR, page 1 or Schedule 1, page 1 AND Schedule NEC per Exhibit 3.21.3-2, Schedule NEC takes priority. Before editing line 23a, see Schedule NEC instructions beginning at IRM 3.21.3.84.23. If line 23a is significant and line 11a is blank, dash, zero, or edited to be blank, edit RPC "J" . If there is an amount on line 23a, Schedule NEC must be attached. If missing, correspond for Schedule NEC. Exception: If there is an amount on line 23a only due to editing, do not correspond for a missing Schedule NEC. Enter amounts in dollars only.

# Line 23b - Other Taxes From Schedule 2, Line 21

3.21.3.84.12.2 (01-01-2021) Line 23b - Other Taxes From Schedule 2, Line 21 If there is an amount on line 23b, Schedule 2 must be attached. See IRM 3.11.3, Individual Income Tax Returns, for instructions on dummying or corresponding.

# Line 23c - Transportation Tax

3.21.3.84.12.3 (01-01-2021) Line 23c - Transportation Tax Reserved

# Line 23d - Total Other Taxes

3.21.3.84.12.4 (01-01-2021) Line 23d - Total Other Taxes Reserved

# Line 24 - Total Tax

3.21.3.84.12.5 (10-30-2024) Line 24 - Total Tax Edit line 24 in dollars and cents when adjusting or computing and editing amounts. Compute and edit line 24 when it is blank, dash, or zero and there are entries leading to a total: Add lines 22 and 23d. If there are no entries on lines 19 through 23d, and line 18 has an entry, edit the line 18 amount on line 24. If there are no entries on lines 17 through 23d, and line 16 has an entry, edit the line 16 amount on line 24. Exception: Do not compute line 24 when line 23a has been edited or adjusted. Edit CCC "B" when either of the following is present: Line 15 is a negative, zero, dash, or none, (or it can be determined to be negative or zero) and lines 16 through 38 are blank, dash, or zero. Note: If line 11a is the last entry, do not attempt to make a determination. If a significant entry on line 16 is less than or equal to line 21 and lines 22 through 38 are blank, dash, or zero. Exception: DO NOT edit CCC "B" when either line 35a or 36 can be perfected. Adjust line 24 to exclude any amount from Form 5330 (excise tax assessment) when there is an indication that it was included. Detach Form 5330 and route it to Receipt and Control.

# Payments and Refundable Credits - Lines 25a Through 33

3.21.3.84.13 (01-01-2019) Payments and Refundable Credits - Lines 25a Through 33 The following subsections contain information pertaining to perfection of lines 25a through 33 on Form 1040-NR. Edit lines 25d through 33 in dollars and cents when adjusting or computing and editing amounts. Line 33 is a T-Compute line.

# Lines 25a, 25b, and 25c - W-2 Withholding, 1099 Withholding, Other Withholding

3.21.3.84.13.1 (01-01-2021) Lines 25a, 25b, and 25c - W-2 Withholding, 1099 Withholding, Other Withholding Reserved

# Line 25d - Total of Lines 25a through 25c (Withholding for W-2, 1099, and Other)

3.21.3.84.13.2 (10-30-2024) Line 25d - Total of Lines 25a through 25c (Withholding for W-2, 1099, and Other) If line 25d is blank, dash, or zero, compute by adding lines 25a through 25c, if present. Otherwise, if line 25d is blank, dash, or zero and withholding is present on Form W-2 or Form 1099, edit the U.S. withholding amount to line 25d. Review ALL Forms W-2 to ensure that withholding claimed by the taxpayer is U.S. withholding. If an amount is present for non-U.S. withholding, "X" line 25d. If line 25d has a misplaced entry from Form 8805 or Form 8288-A: If "Partnership" is clearly shown, edit the amount to line 25e. If "Real Property" is clearly shown, edit the amount to line 25f or 25e accordingly. Caution: When editing a misplaced entry for Form 8805 or Form 8288-A, "X" line 25d, and edit the amount to the appropriate line. Do not arrow. If the line 25d entry is ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡U.S. Form(s) W-2, Form 1099, or similar statement (minimum requirements are; name of employer or EIN, income and withholding) are attached, correspond if unable to verify the amount through research: If using Form 13900 and the amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, "X" line 25d. Note: Research IRP for withholding (when available) before corresponding. Do not research if corresponding for other missing information. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Withholding from Form 1042-S, Form SSA-1042S, and Form RRB-1042S should be reported on line 25g. If found on line 25d or any other line, edit or arrow to line 25g. Edit RPC "G" if any of the following conditions exist: Entry is present on Form 4972, line 6 and/or 8. Taxpayer reported withholding on line 25d and exempted all income on the return due to a valid tax treaty. Edit CCC "8" on a refund return when withholding is significant and there is only a single supporting document attached that is one of the following: A substitute statement (e.g., substitute Form W-2, tax software statement or employer-provided earnings statement with year-to-date totals) or attachment or worksheet. Note: If the only support for withholding is from a single or multiple Forms 4852 and there are no other withholding documentation is present, edit CCC "8" . Handwritten Other than computer-printed Form W-2 Altered name, SSN, wages or federal income tax withheld. Note: To be considered a "single supporting document" , the document must show support from only one employer. Consider Form 4852 and an Employer-provided earnings statement with the same employer and identical amounts to be a "single supporting document".

# Line 25e - Form 8805

3.21.3.84.13.3 (10-29-2025) Line 25e - Form 8805 If the TIN on Form 8805 is missing or partially masked (e.g. XXX-XX-1234) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, "X" line 25e unless the name on Form 8805 matches the taxpayer name on the return. If the TIN on Form(s) 8805 is other than the TIN in the caption area and the credit ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"X" line 25e. Note: Any statement or document from a withholding agent that is submitted in lieu of a Form 8805 must include the U.S. withholding agent's name, address, and TIN (EIN or SSN), and the name in which the tax withheld was reported. If the statement or document does not have all this information, proceed as if there is no similar withholding document present. If the name on the Form 8805 or withholding document does not match the taxpayer name on the return, "X" the credit. Exception: If a valid ITIN has been newly assigned (edited in red) but is not on Form 8805, do not "X" the credit if the name on Form 8805 matches the taxpayer name on the return. If Form 8805 or similar withholding document from withholding agent is not attached ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond. If using Form 13900 and the amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, "X" line 25e. Note: Any statement or document from a withholding agent that is submitted in lieu of a Form 8805 must include the U.S. withholding agent's name, address, and TIN (EIN or SSN), and the name in which the tax withheld was reported. If the name of the taxpayer claiming the refund is different or withholding agent information is not included, "X" the credit.

# Line 25f - Form 8288-A

3.21.3.84.13.4 (01-01-2024) Line 25f - Form 8288-A If any credit is claimed and: 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, IRM 3.21.3.86.13.4 (2)IRM 3.21.3.86.13.4 (2)IRM 3.21.3.86.13.4 (2)IRM 3.21.3.86.13.4 (2)IRM 3.21.3.86.13.4 (2)IRM 3.21.3.85.13.4 (2)IRM 3.21.3.85.13.4 (2)(for current year returns see instructions in (2) below) X line 25f, and edit only the credit(s) that are within the tax period of the return. Caution: If "Original DOT" is notated on the top right side of Form 8288-A, accept that date as the official Date of Transfer. Note: If the return is being filed for a Fiscal Period, allow only credit(s) for which the Date of Transfer on Form 8288-A (box 1) falls within the Fiscal Period of the return being filed. Form 8288-A is not attached, "X" line 25f and correspond. Note: Form 8288may not be used as verification of 8288-A withholding. If the Date of Transfer on Form 8288-A is in 2026 and: The return is numbered,"X" the credit(s). Detach Form 843 along with Form 8288-A and route to Accounts Management. The return is unnumbered and Form 843 is attached, detach Form 843 along with Form 8288-A and route to Accounts Management. "X" line 25f amount and process the return. The return is unnumbered and Form 843 is not attached, send the return back to the taxpayer. Correspond using Form 9143, box 23. Reminder: If "Original DOT" is notated on the top right side of Form 8288-A, accept that date as the official Date of Transfer. All Form 8288-A credits must be verified through the INTLWebApps Database (see IRM 3.21.25.18). If Form 8288-A or a signed or initialed settlement statement/closing agreement (see Exhibit 3.21.3-11) is attached and the return is: Numbered: Request verification of the credit from the FIRPTA Unit and edit Action Code "420" . Unnumbered: Follow the table below: If And Then Credits have not been verified Completely code and edit the return, then place return in designated basket for verification. Note: The verification slip (Form 13698) or printout is attached to the tax form after the credit verification is completed. Credits are verified The verified amount is the same or greater than the amount the taxpayer reported Ensure that the taxpayer's entry is reported on line 25f. Credits are verified The verified amount is less than the amount the taxpayer reported "X" the amount reported by the taxpayer. Edit the verified amount to line 25f. If Form 8288-A is attached, also see IRM 3.21.3.84.8.14 (5)for additional instructions.

# Line 25g - Form 1042-S

3.21.3.84.13.5 (10-30-2024) Line 25g - Form 1042-S Withholding from Form 1042-S, Form SSA-1042S, and Form RRB-1042S should be reported on line 25g. If line 25g is blank, dash, zero, or illegible and withholding is present on Form 1042-S, Form SSA-1042S, or Form RRB-1042S, edit the withholding amount(s) to line 25g. Note: For Form 1042-S, edit the withholding amount from box 10, Total withholding credit. If an amount is present on line 25g, Form 1042-S, Form SSA-1042S, or Form RRB-1042S must be attached with an amount for tax withheld. If missing, "X" line 25g, and correspond. Exception: If a letter is attached signed by the Competent Authority, accept the letter as proof of Form 1042-S withholding and do not "X" line 25g. Caution: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If the TIN on any Form 1042-S is missing, incomplete, partially masked (e.g. XXX-XX-1234), or other than the TIN in the caption area ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, "X" line 25g. Note: If a TIN has been newly assigned (edited in red), but is not on Form 1042-S, do not "X" the credit. Caution: If there is no ITIN on Form 1042-S, but an ITIN is on the Form 1040-NR, and the names are the same, allow the withholding. Do not "X" the credit. When Form 1042-S with Exemption Code 02 in box 3a (exempt under an Internal Revenue Code section) is filed on Form 1040-NR, take one of the following actions: If Then Taxpayer has not entered income or exclusion on Form 1040-NR Take no action. Taxpayer shows the amount as income and exclusion or as a tax treaty on page 1 "X" entries where found. Taxpayer reported gross income and excluded withholding allowance "X" those amounts wherever found, and accept the net income where reported. If the taxpayer reports all or part of net income as taxable income Accept the taxpayer's amount on the appropriate line. Form 1040-NR was prepared by USAID, Note: The return may be stamped Treasury Regulation 1.6012-1(b)(3), USAID/G/HCD/POSS/TAX. Accept the return as filed, Verify the Form 1042-S for the taxpayer's name, Taxpayer Identification Number (TIN) and withholding only, and DO NOT "X" out entries in accordance with normal Exemption Code 02 procedures. When Form 1042-S with Exemption Code 04 in box 3a (exempt under a tax treaty) is filed on Form 1040-NR, take one of the following actions: If Then Taxpayer has entered a valid tax treaty article on Schedule OI, reported the exempt income on Form 1040-NR, line 1k, and reported the withholding on line 25g Take no action. Taxpayer has entered a valid tax treaty article on Schedule OI, included the exempt amount as taxable income (e.g., Form 1040-NR, line 1a) and has not deducted it elsewhere on the return "X" line 1a or wherever found, adjust it to exclude the exempt income, and edit exempt amount to line 1k. Taxpayer did not enter a valid tax treaty article on Schedule OI Correspond. Exception: Do not correspond for a missing article number if Income Code 16 (Income Code 15 for TY14 and prior) and Exemption Code 04 are present and any of the following conditions apply: • Form 1042-S was issued by a college/educational institution or • Zero-balance return or • Form 1042-S has no withholding. Edit RPC "G" if either of the following conditions exist: Entry is present on Form 4972, lines 6 and/or 8, or Taxpayer reported withholding on line 25g and exempted all income on the return due to a valid Tax Treaty. Edit CCC "8" on a refund return when withholding is claimed from a Form 1042-S, and is supported by only one withholding document that is one of the following: A substitute or similar statement Handwritten Exception: Form 1042-S issued by gambling casinos. Altered in one of the following areas: Name, SSN, Federal Income Tax Withheld, and/or Wages.

# Line 26 - Estimated Tax Payments

3.21.3.84.13.6 (01-01-2021) Line 26 - Estimated Tax Payments Any amounts determined to be other than ES tax payments must be deleted and edited to the proper line.

# Line 27

3.21.3.84.13.7 (01-01-2021) Line 27 Reserved

# Line 28 - Additional Child Tax Credit

3.21.3.84.13.8 (10-29-2025) Line 28 - Additional Child Tax Credit If an amount is present on line 28 and there are 3 or more qualifying children with the CTC checkbox marked on line 6 of the dependent area of the return, Schedule 8812 must be attached. If missing, correspond for Schedule 8812.

# Line 29 - Form 1040-C Credit

3.21.3.84.13.9 (01-01-2015) Line 29 - Form 1040-C Credit Reserved

# Line 30

3.21.3.84.13.10 (01-01-2021) Line 30 Reserved

# Line 31 - Other Payments and Refundable Credits (Schedule 3, Line 15)

3.21.3.84.13.11 (01-01-2024) Line 31 - Other Payments and Refundable Credits (Schedule 3, Line 15) If there is an amount on line 31, Schedule 3 must be attached. If missing and cannot be dummied from attachments, correspond for Schedule 3. See IRM 3.11.3, Individual Income Tax Returns, for instructions on dummying or corresponding.

# Line 32 - Total Other Payments and Refundable Credits

3.21.3.84.13.12 (10-30-2024) Line 32 - Total Other Payments and Refundable Credits Compute and edit line 32 when it is blank, dash, or zero and there are entries leading to a total.

# Line 33 - Total Payments

3.21.3.84.13.13 (10-30-2024) Line 33 - Total Payments Correspond for an explanation when the amount claimed on line 33 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the type of credit is not identified. Compute and edit line 33 when it is blank, dash, or zero and there are entries leading to a total.

# Refund or Amount Owed - Lines 34 Through 38

3.21.3.84.14 (01-01-2021) Refund or Amount Owed - Lines 34 Through 38 The following subsections contain information pertaining to lines 34 through 38 on Form 1040-NR. Edit lines 35a, 36, 37, and 38 in dollars and cents when adjusting or computing and editing amounts.

# Line 35a - Refund Due

3.21.3.84.14.1 (01-01-2021) Line 35a - Refund Due If blank, compute and edit line 35a when lines 34, 36, and 37 are all blank, line 33 is greater than line 24, and any one of the following conditions is present: Line 33 has an entry. The taxpayer has computed or indicated no tax is due on lines 16, 18, 22, or 24. It can be determined that line 24 would be zero if it were computed. Do not edit CCC "B" when line 35a has been computed to a significant amount.

# Lines 35b, 35c and 35d - Direct Deposit

3.21.3.84.14.2 (01-01-2021) Lines 35b, 35c and 35d - Direct Deposit For complete instructions, see IRM 3.11.3.14.3.2, Lines 35b, 35c, and 35d - Direct Deposit Information.

# Line 35e - Refund Check

3.21.3.84.14.3 (01-01-2021) Line 35e - Refund Check See IRM 3.21.3.83.6 for manual refund procedures.

# Line 36 - Estimated Tax Credit Elect

3.21.3.84.14.4 (01-01-2021) Line 36 - Estimated Tax Credit Elect When lines 34, 35a, and 36 are the same, perfect them as follows: If ES payments (line 26) Then Are claimed, "X" the entry on line 35a. Are not claimed, "X" the entry on line 36. Note: An overpayment (line 34) can be divided between lines 35a (refund) and 36 (ES Credit Elect). Exclude the additional amount when line 36 includes an amount for any of the following: Late filing penalty Late payment penalty Interest Note: Do not exclude estimated tax penalty. Edit Action Code "430" to send the return to Rejects when either of the following conditions is present: A statement is present on or near line 36 indicating that the taxpayer wants the credit applied to their spouse's account. The return is FS 3 and there is a statement or schedule present showing how estimated payments are to be allocated.

# Line 37 - Amount You Owe (Balance Due)

3.21.3.84.14.5 (01-01-2021) Line 37 - Amount You Owe (Balance Due) If blank, compute and edit line 37 when lines 34, 35a, and 36 are blank and line 24 is greater than line 33. Note: When computing line 37, include the amount from line 38, estimated tax penalty. Do not edit CCC "B" when line 37 has been computed to a significant amount.

# Line 38 - Penalty for Underpayment of ES Tax (Form 2210 and Form 2210-F)

3.21.3.84.14.6 (01-01-2021) Line 38 - Penalty for Underpayment of ES Tax (Form 2210 and Form 2210-F) Form 2210 has been assigned sequence number "06" and Form 2210-F has been assigned sequence number "06a" . However, these forms are not transcribed. Delete these forms. Edit CCC "P" when any of the following conditions apply: Tax year is "2018" and Box A in Part II is marked and "80% Waiver or 85% Waiver" is noted next to Box A or in the Box A area. Form 2210 is attached with any of the boxes in Part II, C - E marked. Form 2210-F is attached with Box B in Part I marked. There is any indication of the following on Form 2210OR in the Line 38 area, Form 1040-NROR in the occupation area of Form 1040-NR. Actual Withholding Annualized Income (AI) Exempt Waiver Not liable for ES penalty (Reasonable Cause for Underpayment) Exception: Take no action, and do not edit CCC "P" if there is an indication of Disaster on Form 2210, Form 2210-F, or Form 1040-NR. If only Box A and/or Box B in Part II on Form 2210 is marked or if only Box A in Part I on Form 2210-F is marked, verify the attached statement indicates the taxpayer has retired after reaching age 62 or has become disabled during the tax year or the prior tax year. If statement is present, edit CCC "P" . If statement is not present, edit CCC "7" and correspond using Letter 369C, open paragraph U using the following verbiage: "We cannot consider your request for a waiver of the estimated tax penalty because the required documentation was not attached to your return. If you receive notice of penalty assessment, you may request a consideration of the assessment by mailing the required documentation along with a copy of your Form 2210, to the address that will be indicated on the notice of assessment." Exception: Take no action, and do not edit CCC "P" or CCC "7" if there is an indication of Disaster on Form 2210, Form 2210-F, or Form 1040-NR. If line 38 is blank and Form 2210 or Form 2210-F is attached, edit the amount from: Line 19 of Form 2210. Line 16 of Form 2210-F. Compare the line 38 entry with the amount on Form 2210, line 19 (or Form 2210-F, line 16) when CCC "P" is edited. If the entry on line 38 is different from the amount on Form 2210 or Form 2210-F after allowing for rounding: "X" the line 38 entry, and Edit the amount from Form 2210 or Form 2210-F to line 38.

# Signature

3.21.3.84.15 (01-01-2021) Signature Rev. Rul. 68-500 allows Form 1040-NR to include a facsimile signature signed for the taxpayer by an agent. Accept a facsimile signature and process the returns that are signed for the taxpayer by an agent. (Attorney-in-Fact) Refer to IRM 3.11.3, Individual Income Tax Returns, for additional correspondence instructions. Note: Correspond using Form 9143 if the signature is missing or invalid. Correspond using Form 13900 if documentary evidence is missing. Exception: For "bulk/clean" filed Form 1040-NR, accept the facsimile or original signatures and process returns that are signed for the taxpayer by an agent (Attorney-in-Fact). For these types of returns, accept signatures with or without a POA or statement that indicates Treasury Regulations Section 1.6012-1(b)(3). Do not correspond if there is no signature but Treasury Regulation Section 1.6012-4(b)(3)(i) is listed. Reminder: A thumbprint in lieu of a signature is to be treated as a frivolous filer when present in the signature area.

# Occupation

3.21.3.84.16 (01-01-2015) Occupation The occupation area of the return is not transcribed; however, it is important to scan this area. If the country is India and student is listed in the occupation area, the taxpayer qualifies to claim the standard deduction.

# Identity Protection Personal Identification Number (IP PIN)

3.21.3.84.17 (10-30-2024) Identity Protection Personal Identification Number (IP PIN) Identity Protection Personal Identification Number (IP PIN) is located in the "Sign Here" area of the return. If multiple IP PINs are present, circle all but the IP PIN assigned to he primary taxpayer. If it is not 6 numeric digits, circle IP PIN.

# Preparer Data

3.21.3.84.18 (01-01-2015) Preparer Data Refer to IRM 3.11.3.14.8, Paid Preparer Data, for complete preparer instructions. Exception: Do not edit the E-File waiver code on Form 1040-NR.

# Form 1040-NR, Schedule 1 (Sequence 01) - Additional Income and Adjustments to Income

3.21.3.84.19 (01-01-2021) Form 1040-NR, Schedule 1 (Sequence 01) - Additional Income and Adjustments to Income For TY20 and later, Schedule 1 may be attached to Form 1040-NR. See line-by-line instructions.

# Schedule 1, Line 1 - State/Local Income Taxable Refunds

3.21.3.84.19.1 (01-01-2015) Schedule 1, Line 1 - State/Local Income Taxable Refunds Reserved

# Schedule 1, Lines 2a and 2b - Alimony Received and Date of Original Divorce or Separation (Not Transcribed)

3.21.3.84.19.2 (01-01-2024) Schedule 1, Lines 2a and 2b - Alimony Received and Date of Original Divorce or Separation (Not Transcribed) If the taxpayer has reported alimony income received on Schedule 1, line 2a, edit the entry to Schedule 1, line 9.

# Schedule 1, Line 3 - Business Income or Loss (Schedule C)

3.21.3.84.19.3 (01-01-2021) Schedule 1, Line 3 - Business Income or Loss (Schedule C) If an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on line 3 and no Schedule C is attached: If the amount on line 3 is Then Supported by an attachment Dummy a Schedule C. Note: See IRM 3.11.3, Individual Income Tax Returns for complete instructions to dummy Schedule C. Not supported by an attachment Correspond for Schedule C. Dummy a required Schedule C by editing a positive amount to lines 1 and 3 or a negative amount to line 28 when ALL of the following conditions apply: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Schedule C is not present. There are no supporting documents from which to dummy the required Schedule C. Exception: Do NOT dummy Schedule C if corresponding for other missing return items. Instead, include the request for Schedule C in the correspondence to the taxpayer.

# Schedule 1, Line 4 - Other Gains or Losses (Form 4797)

3.21.3.84.19.4 (10-29-2025) Schedule 1, Line 4 - Other Gains or Losses (Form 4797) If a positive or negative entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Schedule 1, line 4; Form 4797, Form 4684, or a statement must be attached. If missing, correspond for Form 4797. Exception: Correspond for Form 4684 instead of Form 4797 if taxpayer has notated "Form 4684" or checked the box indicating a Form 4684.

# Schedule 1, Line 5 - Rental Real Estate, Royalties, Partnerships, S Corporations, Trusts, etc. (Schedule E)

3.21.3.84.19.5 (01-01-2021) Schedule 1, Line 5 - Rental Real Estate, Royalties, Partnerships, S Corporations, Trusts, etc. (Schedule E) If an amount is present on line 5 and Schedule E is not attached, but Form 4835 is present, dummy Schedule E as follows: If Form 4835 Then Line 32 is a positive amount Edit that amount to line 40 on Schedule E. Line 34c is a negative amount Edit that amount to line 40 on Schedule E. Exception: If a taxpayer notates PAL, do not move the negative amount to line 40 of Schedule E Line 34c is blank Edit the loss from line 32 on Form 4835 to line 40 of Schedule E. Exception: If a taxpayer notates PAL, do not move the negative amount to line 40 of Schedule E Line 7 is a positive amount Edit that amount to line 42 on Schedule E. Dummy a Schedule E, if possible, when an amount is present, but neither Schedule E nor Form 4835 is attached: If there is a clear indication that the income is from: Then Rents or royalties Edit a positive amount to line 24 on Schedule E. Edit a negative amount to line 25 on Schedule E. A partnership or S-Corporation (e.g., Schedule K-1) Edit a positive amount to line 30 on Schedule E. Edit a negative amount to line 31 on Schedule E. An estate or trust Edit a positive amount to line 35 on Schedule E. Edit a negative amount to line 36 on Schedule E. Correspond when an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present and Schedule E is not attached and cannot be dummied. Note: Correspond for a complete Schedule E if only page 1 and/or 2 of Schedule E is attached AND blank. Dummy a required Schedule E by editing a positive amount to line 24 or a negative amount on line 25 when ALL the following conditions apply: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Schedule E is not present. There are no supporting documents from which to dummy the required Schedule E. Exception: Do not dummy a Schedule E if corresponding for other missing return items. Instead, include the request for Schedule E in the correspondence to the taxpayer.

# Schedule 1, Line 6 - Farm Income or Loss (Schedule F)

3.21.3.84.19.6 (01-01-2021) Schedule 1, Line 6 - Farm Income or Loss (Schedule F) If an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present and Schedule F is not attached: If the amount on line 6 is Then Supported by an attachment Dummy a Schedule F Note: See IRM 3.11.3, Individual Income Tax Returns for complete instructions to dummy Schedule F. Not supported by an attachment Correspond for Schedule F. Dummy a required Schedule F by editing a positive or negative dollar amount onto line 9 when ALL the following conditions apply: The amount on line 6 is less than ≡ ≡ ≡ ≡ ≡ (positive or negative). Schedule F is not present. There are no supporting documents from which to dummy the required Schedule F. Exception: Do not dummy Schedule F if corresponding for other missing return items. Instead, include a request for Schedule F in the correspondence to the taxpayer.

# Schedule 1, Line 7 - Unemployment Compensation (UEC)

3.21.3.84.19.7 (01-01-2021) Schedule 1, Line 7 - Unemployment Compensation (UEC) Edit the gross amount of unemployment compensation (UEC) from Form 1099-G if line 7 is blank. Delete any amount identified as supplemental benefits received from a company-financed supplemental unemployment benefits (SUB) fund. Include the amount of SUB pay on line 1a, Form 1040-NR. Take no action when the taxpayer indicates repaid and an amount on the dotted portion of line 7.

# Schedule 1, Lines 8a through 8z - Other Income

3.21.3.84.19.8 (10-30-2024) Schedule 1, Lines 8a through 8z - Other Income If a claimed Treaty Exemption is determined to be valid (see IRM 3.21.3.84.8.6), but the taxpayer has entered, or included in a total, the income and/or exemption on Schedule 1, or on Form 1040-NR, lines 1a, 1z, or 2b-8, take the following actions: "X" the income and/or exemption on Schedule 1, line 9 or 25 (if included), and on Form 1040-NR, line 1a, 1z, or 2b-8 (as appropriate). Edit the allowable exemption amount on Form 1040-NR, line 1k, if not already entered by the taxpayer, and Note: Do not adjust or compute Form 1040-NR, line 9 or 11a. If the treaty is valid but the taxpayer has claimed more than the treaty allows, edit the allowable amount on Form 1040-NR, line 1k, if not already entered by the taxpayer. Ensure that the excess amount is reported on Form 1040-NR, lines 1a - 8; if not reported, edit the excess amount to Form 1040-NR, line 1z. Note: Do not adjust or compute Form 1040-NR, line 9 or 11a. If a claimed Treaty Exemption is determined to be invalid, take the following actions: Edit the exempted amount as taxable income on Form 1040-NR, line 1z, if not already entered by the taxpayer on line 1a or included in line 1z, "X" Form 1040-NR, line 1a, if the treaty exemption amount is present, "X" Form 1040-NR, line 1z, if the treaty exemption amount is claimed on any of lines 1b through 1h, and "X" Form 1040-NR, line 1k and/or Schedule 1, line 9 or 25, if exemption is included by the taxpayer. Note: Do not adjust or compute Form 1040-NR, line 9 or 11a. If taxpayer claims a Treaty Exemption that cannot be verified due to incomplete information, correspond. If Gambling Winnings are reported as effectively connected income on Form 1040-NR, page 1 or Schedule 1, take one of the following actions: Residents of Canada may claim gambling losses, but only to the extent of gambling winnings. They should report their total gambling winnings and losses (not to exceed winnings) on Schedule NEC, lines 10a and 10b. They should report net gambling winnings on Schedule NEC, line 10c. "X" the gambling winnings and losses if reported on any other line. Gambling winnings are tax exempt for residents of the following countries: Country Austria Belgium Bulgaria Chile (see below) Czech Republic Denmark Finland France Germany Hungary (see below) Iceland Ireland Italy Japan Latvia Lithuania Luxembourg Netherlands Russian Federation (Russia) (see below) Slovak Republic (Slovakia) Slovenia South Africa Spain Sweden Tunisia Turkey Ukraine United Kingdom (including Great Britain, England, Northern Ireland, Scotland, and Wales) Note: The U.S.-Chile income tax treaty entered into effect with respect to taxes withheld at source paid or credited on or after February 1, 2024, and for other taxes for taxable periods beginning on or after January 1, 2024. Accordingly, beginning in 2024, gambling winnings paid to a resident of Chile should be treated as not subject to U.S. tax. Note: The U.S.-Hungary tax treaty was terminated in 2023 and ceased to have effect with respect to U.S. withholding tax after January 1, 2024. Beginning in 2024, it may not be relied upon to exclude gambling winnings of a resident of Hungary from U.S. tax. Note: The U.S.-Russia tax treaty is suspended for these taxes as of August 16, 2024. It may not be relied upon after that date to exclude gambling winnings from U.S. tax. Caution: If a taxpayer is a resident of a country that is exempt from U.S. tax on gambling winnings, "X" entry where found. All other countries: "X" the amount and multiply the amount of gross gambling winnings by 30% and edit the result to line 23a, 1040-NR. Do not adjust or compute Form 1040-NR, line 24. Exception: Malta is taxed at 10%. If a taxpayer claims a foreign earned income exclusion (Form 2555, Form 2555-EZ (TY18 and prior), IRC 911, IRC 931, or IRC 933), "X" the exclusion and Form 2555 or Form 2555-EZ. Make sure that the foreign earned income is reported on the appropriate Form 1040-NR, lines 1a through 1h or Schedule 1, lines 3, 5, or 6. Line 8r, "Scholarship and fellowship grants not reported on Form W-2," is a T-line. If there is an entry on this line, see IRM 3.21.3.84.19.9 for instructions. If taxpayer indicates IRC 893 or employee of foreign government or international organization, and exempts wages or salary compensation, verify that the taxpayer has provided the following information: Evidence of non-United States citizen status (e.g., a copy of their A or G visa or green card). Written evidence from the United States Citizenship and Immigration Services (USCIS) which confirms that the taxpayer has not signed and filed USCIS Form I-508 (Waiver of Certain Rights, Privileges, Exemptions, and Immunities). Note: An employee's compensation is not eligible for exemption under IRC 893 if they have signed and filed the USCIS Form I-508. If an employee of a foreign government, a copy of the U.S. State Department IRC 893(b) certification. Note: If a taxpayer provides evidence in lieu of IRC 893(b) certification, accept the evidence if it establishes that the services rendered by the employee are similar to the services rendered by employees of the U.S. government in foreign countries, and that the foreign government grants an equivalent tax exemption to such U.S. government employees. Example: The taxpayer may provide a copy of a foreign statute or regulation that shows an equivalent tax exemption to U.S. government employees in that country. If an employee of an international organization, the number of the Presidential Executive Order. See Exhibit 3.21.3-4 for a list of those approved international organizations and foreign governments. Exception: The Executive Order number is not required if the international organization is listed in Exhibit 3.21.3-4. Note: IRC 893 does not apply to the North Atlantic Treaty Organization (NATO) or the Ottawa Agreement. If taxpayer has provided all the necessary information, follow the table below: If And Then Taxpayer exempts income on Schedule 1, line 9 Reports earned income Take no action. Taxpayer exempts income on Schedule 1, line 9 Does not report earned income (Form 1040-NR, line 1a) Edit earned income to Form 1040-NR, line 1a. Taxpayer exempts income on Form 1040-NR, line 1k Does not report earned income (Form 1040-NR, line 1a) or exemption amount (Schedule 1, line 9) Edit earned income to Form 1040-NR, line 1a (if not present), Edit the exempt income to Schedule 1, line 9 (if not present) as a negative amount, and "X" Form 1040-NR, line 1k. If taxpayer has not provided all the necessary information, correspond. If the taxpayer claims a capital gains exemption under IRC 871, and they were present in the U.S. for less than 183 days during the tax year (see Schedule OI, Letter H or attachments for determination): Edit the capital gains to Form 1040-NR, line 7a (if not already included), and Edit the exempt amount to Schedule 1, line 9 as a negative amount (if not already included). Note: The instructions also apply if the number of days is blank. If the taxpayer claims a capital gains exemption under IRC 871, and they were present in the U.S. for 183 days or more during the tax year: Edit the capital gains to Form 1040-NR, line 7a (if not already included), and "X" Schedule 1, line 9. Under IRC 872(b)(3), compensation paid by a foreign employer to a nonresident alien individual present in the United States on an "F" , "J" , or "Q" visa while participating in certain exchange or training programs is exempt from tax. A "foreign employer" includes a nonresident alien individual, foreign partnership, or foreign corporation, or an office or place of business maintained in a foreign country or in a territory of the United States by a domestic corporation, a domestic partnership, or an individual who is a citizen or resident of the United States. If Then The taxpayer doesn't report the income Take no action. The taxpayer reports the income on any of the income lines and/or exempts it on Schedule 1, line 9 "X" the income and/or exemption where found. A Form 1099-B (Proceeds from Broker and Barter Exchange Transactions) filed with a Form 1040-NR is taxable effectively connected income and should be reported on Schedule D or included on Schedule 1, line 9: If reported on other than Schedule D or Schedule 1, line 9, edit gross proceeds to Schedule 1, line 9. If Form 1099-B (Proceeds from Broker and Barter Exchange Transactions) is attached and not reported on the return, edit gross proceeds to Schedule 1, line 9. Use the table below to determine action(s) for notations and/or other amounts included on Schedule 1, line 9: If the amount is identified as Then Dependent Care Benefits (DCB) Move to Form 1040-NR, line 1z. Form 2441 must be attached. If missing, correspond for Form 2441. Disability Pension (Form 1099-R with Code 3 in box 7) Move to Form 1040-NR, line 1z. Indian Gaming Proceeds (IGP) Edit RPC "G" , if withholding is present Nontaxable income: Accident and health insurance proceeds "Black Lung" benefits Casualty insurance and other reimbursements Child support Damages awarded for physical injury or sickness Federal Employees' Compensation Act (FECA) payments Interest on state or local government obligations Public aid Supplemental Security Income (SSI)/SSI Disability Tax-Sheltered Annuities Temporary Assistance for Needy Families (TANF) Veterans' Administration (VA) Benefits Workers' Compensation Adjust Schedule 1, line 9 to exclude nontaxable income.

# Schedule 1, Line 8r - Scholarship and Fellowship Grants Not Reported on Form W-2

3.21.3.84.19.9 (10-30-2024) Schedule 1, Line 8r - Scholarship and Fellowship Grants Not Reported on Form W-2 Generally, a taxpayer's entry on Schedule 1, line 8r should include only the amount of scholarship and fellowship grants not reported on Form W-2, reduced by any amount exempt by treaty and any amount used to pay for tuition and required, course-related expenses. Scholarship and fellowship income shown on Form W-2 should be reported on Form 1040-NR, line 1a. If it is determined this Form W-2 income is included in the line 8r entry: Edit the Form W-2 gross income to Form 1040-NR, line 1a, if not already included, Do not adjust or compute Form 1040-NR, line 9 or 11a, and "X" or adjust the line 8r amount to exclude the income moved to Form 1040-NR, line 1a. If it can be determined that any amount of scholarship or fellowship grant reported on line 8r, from a Form 1042-S with Income Code 16 (Income Code 15 for TY14 and prior) or a Form 1098-T, is exempt under a tax treaty (check Schedule OI, item L), take the following actions: Move the treaty-exempt grant to Form 1040-NR, line 1k, if not already included there, "X" or adjust the line 8r amount to exclude the treaty-exempt grant, and "X" the treaty exemption if found elsewhere on the return. One or more of the following documents must be attached to support an entry on line 8r. If missing, correspond: Form 1042-S with Income Code 16 (Income Code 15 for TY14 and prior) issued by a college or an educational institution A statement from a college or an educational institution (on their letterhead) that states the amount of the grant, the grantor's name, the dates it covers, and the expenses the grant covers Form 1098-T If at least one of the items in IRM 3.21.3.84.19.9 (4) above is present and EITHER there is still an amount on line 8r after following the above paragraphs OR there is a Form 1042-S with Income Code 16 (Income Code 15 for TY14 and prior) issued by a college or an educational institution or a Form 1098-T attached to the return, where the income is not reported anywhere, follow the instructions in the table below: If And Then You calculate (1) minus (2) below by: Adding: All Form 1042-S (Income Code 16) gross income, box 2 amounts, All Form 1098-T scholarships or grants, box 5 amounts, and All grant income from educational institution statements Subtracting: All Form 1098-T payments received for qualified tuition and related expenses, box 1 amounts and All tuition and required, course-related expenses (fees, books, supplies, equipment) from educational institution statements, and from receipts, invoices and the like Note: While you can use statements from educational institutions that provide only institution-determined total expenses without a breakdown do not use taxpayer-prepared or taxpayer-provided statements showing only total expenses or other statements showing only taxpayer-determined total expenses with no breakdown or itemization The amount calculated by adding all the items in (1) and then subtracting all the items in (2) is greater than the line 8r entry, including when line 8r is blank or zero Edit or adjust line 8r to equal the calculated amount.

# Schedule 1, Line 9 - Total Other Income

3.21.3.84.19.10 (10-30-2024) Schedule 1, Line 9 - Total Other Income If the taxpayer exempts income on Schedule 1, Part I without providing a valid treaty, "X" Schedule 1, line 9. If Form 1099-MISC or Form 1099-NEC is attached and there is a clear indication that the income was not included on the return, edit the income to Schedule 1, line 9. Do not include the Form 1099-MISC or Form 1099-NEC amount on Schedule 1, line 9, when any of the following are attached: Schedule C Schedule E (Part II) Schedule F Form 2106 If line 9 is blank, dash, or zero and there are any entries on lines 8a through 8z, compute and edit line 9 by adding lines 8a through 8z.

# Schedule 1, Line 11 Dotted Portion - Form 982 Indicator

3.21.3.84.19.11 (11-12-2021) Schedule 1, Line 11 Dotted Portion - Form 982 Indicator For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 1, Line 11 - Educator Expenses

3.21.3.84.19.12 (01-01-2021) Schedule 1, Line 11 - Educator Expenses Reserved

# Schedule 1, Line 12 - Certain Business Expenses of Reservists, Performing Artists, and Fee-Basis Government Officials (Form 2106)

3.21.3.84.19.13 (01-04-2021) Schedule 1, Line 12 - Certain Business Expenses of Reservists, Performing Artists, and Fee-Basis Government Officials (Form 2106) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 1, Line 13 - Health Savings Account Deduction (Form 8889)

3.21.3.84.19.14 (01-01-2021) Schedule 1, Line 13 - Health Savings Account Deduction (Form 8889) Form 8889 must be attached if an amount is being claimed on line 13. Correspond, if missing.

# Schedule 1, Line 14 - Moving Expenses for Members of the Armed Forces (Form 3903)

3.21.3.84.19.15 (01-01-2021) Schedule 1, Line 14 - Moving Expenses for Members of the Armed Forces (Form 3903) If an amount is present on Schedule 1, line 14 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 3903 (or similar statement) must be attached. If missing, correspond for Form 3903. Note: If the taxpayer is only claiming an expense for storage fees while out of the United States, Form 3903 is not required.

# Schedule 1, Line 15 - Deductible Part of Self-Employment Tax

3.21.3.84.19.16 (01-01-2021) Schedule 1, Line 15 - Deductible Part of Self-Employment Tax Reserved

# Schedule 1, Line 16 - Self-Employed SEP, SIMPLE, and Qualified Plans

3.21.3.84.19.17 (01-01-2021) Schedule 1, Line 16 - Self-Employed SEP, SIMPLE, and Qualified Plans If Schedule C, Schedule E (Part II), or Schedule F is not attached, "X" line 16.

# Schedule 1, Line 17 - Self-Employed Health Insurance Deduction

3.21.3.84.19.18 (01-01-2021) Schedule 1, Line 17 - Self-Employed Health Insurance Deduction Edit misplaced amount from line 17 to line 15 when both of the following conditions are present: Line 15 is blank Schedule SE is attached to the return

# Schedule 1, Line 18 - Penalty on Early Withdrawal of Savings

3.21.3.84.19.19 (01-01-2021) Schedule 1, Line 18 - Penalty on Early Withdrawal of Savings Reserved

# Schedule 1, Lines 19a, 19b, and 19c - Alimony Paid, Recipient's TIN, and Date of Divorce

3.21.3.84.19.20 (01-04-2021) Schedule 1, Lines 19a, 19b, and 19c - Alimony Paid, Recipient's TIN, and Date of Divorce Reserved

# Schedule 1, Line 20 - IRA Deduction

3.21.3.84.19.21 (01-01-2021) Schedule 1, Line 20 - IRA Deduction For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 1, Line 21 - Student Loan Interest Deduction

3.21.3.84.19.22 (01-01-2021) Schedule 1, Line 21 - Student Loan Interest Deduction Reserved

# Schedule 1, Line 22

3.21.3.84.19.23 (01-01-2021) Schedule 1, Line 22 Reserved

# Schedule 1, Line 23 - Archer MSA Deduction

3.21.3.84.19.24 (11-12-2021) Schedule 1, Line 23 - Archer MSA Deduction For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 1, Lines 24a through 24z - Other Adjustments (Not Transcribed)

3.21.3.84.19.25 (10-30-2024) Schedule 1, Lines 24a through 24z - Other Adjustments (Not Transcribed) If a claimed Treaty Exemption is determined to be valid (see IRM 3.21.3.84.8.6), but the taxpayer has entered, or included in a total, the income and/or exemption on Schedule 1, or on Form 1040-NR, lines 1a, 1z, or 2b-8, take the following actions: "X" the income and/or exemption on Schedule 1, line 9 or 25 (if included), and on Form 1040-NR, line 1a, 1z, or 2b-8 (as appropriate), Edit the allowable exemption amount on Form 1040-NR, line 1k, if not already entered by the taxpayer, and Note: Do not adjust or compute Form 1040-NR, line 9 or 11a. If the treaty is valid but the taxpayer has claimed more than the treaty allows, edit the allowable amount on Form 1040-NR, line 1k, if not already entered by the taxpayer. Ensure that the excess amount is reported on Form 1040-NR, lines 1a - 8; if not reported, edit the excess amount to Form 1040-NR, line 1z. Note: Do not adjust or compute Form 1040-NR, line 9 or 11. If a claimed Treaty Exemption is determined to be invalid, take the following actions: Edit the exempted amount as taxable income on Form 1040-NR, line 1z, if not already entered by the taxpayer on line 1a or included in line 1z, "X" Form 1040-NR, line 1a, if the treaty exemption amount is present, "X" Form 1040-NR, line 1z, if the treaty exemption amount is claimed on any of lines 1b through 1h, and "X" Form 1040-NR, line 1k and/or Schedule 1, line 9 or 25, if exemption is included by the taxpayer. Note: Do not adjust or compute Form 1040-NR, line 9 or 11a. If taxpayer claims a Treaty Exemption that cannot be verified due to incomplete information, correspond. Delete the following adjustments from Schedule 1, lines 11 through 23, and/or Form 1040-NR, line 10a, and ensure the amounts are included in the Schedule 1, line 25 total: "403(b)" - contributions by certain chaplains to section 403(b) plans "501(c)(18)(D)" - contributions to certain pension plans "ED67(e)" - (TY18 and later) Excess Deductions of section 67(e) expenses from Form 1041 Schedule K-1 "Jury Pay" - Jury Duty Pay "PPR" - Personal Property Rental deductible expenses "RFST" - Reforestation amortization and expenses "Sub-Pay TRA" - repayment of Supplemental Unemployment Benefit (SUB) payments received in a prior year under the Trade Act of 1974 (TRA) Exception: "X" the SUB pay amount where found and subtract the amount from Form 1040, line 1a when there is no indication that the adjustment is for benefits received in a prior year. "UDC" - legal fees for Unlawful Discrimination Claims "USOC" - United States Olympic Committee-deduction for Olympic and Paralympic medals and prize money "WBF" - Whistle Blower Fees "DPAD" - Domestic Production Activity Deduction If a taxpayer claims an adjustment to income on Schedule 1, line 24z for anything other than the items listed in (4) above, "X" line 25. If there is an amount on line 24z with no explanation present, "X" line 25.

# Schedule 1, Line 25 - Total Other Adjustments

3.21.3.84.19.26 (10-30-2024) Schedule 1, Line 25 - Total Other Adjustments If line 25 is blank, dash, or zero and there are any entries on lines 24a through 24z, compute and edit line 25 by adding lines 24a through 24z.

# Schedule 1, Line 26 - Total Adjustments to Income

3.21.3.84.19.27 (01-01-2021) Schedule 1, Line 26 - Total Adjustments to Income For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 1040-NR, Schedule 2 (Sequence 02) - Additional Taxes

3.21.3.84.20 (01-01-2021) Form 1040-NR, Schedule 2 (Sequence 02) - Additional Taxes For TY20 and later, Schedule 2 may be attached to Form 1040-NR. See line-by-line instructions.

# Schedule 2, Line 1a - Excess Advance Premium Tax Credit Repayment (Form 8962)

3.21.3.84.20.1 (10-30-2024) Schedule 2, Line 1a - Excess Advance Premium Tax Credit Repayment (Form 8962) If an amount is claimed on line 1a, Form 8962 must be present. Correspond, if missing. When corresponding for Form 8962 on Form 13900, also correspond for Form 1095-A, if not attached, using paragraph "s" . When corresponding for Form 8962, on Form 9143, also correspond for Form 1095-A, if not attached, using the following literal: "Send a copy of your Form 1095-A, Health Insurance Marketplace Statement, to support your entries on Form 8962, Premium Tax Credit. If you didn't receive one or your Form 1095-A is incorrect, visit www.healthcare.gov or your state Marketplace website."

# Schedule 2, Line 2 - Alternative Minimum Tax (Form 6251)

3.21.3.84.20.2 (10-29-2025) Schedule 2, Line 2 - Alternative Minimum Tax (Form 6251) If an amount is present on Schedule 2, Form 6251 must be attached. If missing, correspond for Form 6251. Reminder: Edit FPC "5" when Form 6251 is attached. Note: A blank Form 6251 should never be deleted.

# Schedule 2, Line 3 - Total

3.21.3.84.20.3 (01-01-2021) Schedule 2, Line 3 - Total Reserved

# Schedule 2, Line 4 - Self-Employment Tax (Schedule SE)

3.21.3.84.20.4 (01-01-2023) Schedule 2, Line 4 - Self-Employment Tax (Schedule SE) A Schedule SE is required if there is an amount on line 4. Dummy Schedule SE from Schedule C, Schedule E (Part II present), Schedule F, or attachments, if possible. Otherwise, correspond. Exception: Do not dummy Schedule SE if corresponding for other missing attachments. Instead, include the request for Schedule SE in the correspondence to the taxpayer. Edit FPC "S" if Schedule SE is attached or the taxpayer includes an entry on line 4.

# Schedule 2, Line 7 - Total Additional Social Security and Medicare Tax (Form 4137 and Form 8919)

3.21.3.84.20.5 (01-01-2021) Schedule 2, Line 7 - Total Additional Social Security and Medicare Tax (Form 4137 and Form 8919) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 2, Line 8 - Additional Tax on IRAs or Other Tax-Favored Accounts (Form 5329)

3.21.3.84.20.6 (01-01-2023) Schedule 2, Line 8 - Additional Tax on IRAs or Other Tax-Favored Accounts (Form 5329) Correspond for Form 5329 if an amount is present on line 8 and Form 5329 is not attached, unless any of the following conditions apply: The taxpayer has checked the box to the left of line 8. The taxpayer notates "No" to the left of line 8, or Line 8 has an entry that is 10% of any combination of the following: Form 1040-NR, line 4b Form 1040-NR, line 5b Form 1099-R Edit RPC "3" if Form 5329 is not present and any of the conditions above apply. Edit the totals of Parts I through IX of Form 5329 when line 8 is blank andForm 5329 is attached with entries present.

# Schedule 2, Line 9 - Household Employment Taxes (Schedule H)

3.21.3.84.20.7 (01-01-2021) Schedule 2, Line 9 - Household Employment Taxes (Schedule H) If an amount is claimed on line 9, Schedule H must be attached. Correspond, if missing.

# Schedule 2, Line 11 - Additional Medicare Tax (Form 8959)

3.21.3.84.20.8 (01-01-2023) Schedule 2, Line 11 - Additional Medicare Tax (Form 8959) If an amount is present on line 11, Form 8959 must be attached. Correspond for Form 8959, if missing.

# Schedule 2, Line 12 - Net Investment Income Tax (Form 8960)

3.21.3.84.20.9 (01-01-2023) Schedule 2, Line 12 - Net Investment Income Tax (Form 8960) If an amount is present on line 12, Form 8960 must be attached. Correspond for Form 8960, if missing.

# Schedule 2 Line 13 - Uncollected Social Security and Medicare or RRTA Tax on Tips

3.21.3.84.20.10 (01-01-2023) Schedule 2 Line 13 - Uncollected Social Security and Medicare or RRTA Tax on Tips UT/UTOT or COBRA is reported on Schedule 2, line 13. If found elsewhere on the return, delete where found and edit to line 13 or renumber to be line 13, as appropriate.

# Schedule 2, Line 16 - Recapture of Low-Income Housing Credit (Form 8611)

3.21.3.84.20.11 (11-12-2021) Schedule 2, Line 16 - Recapture of Low-Income Housing Credit (Form 8611) If Form 8611 is missing and the line 16 amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond for Form 8611.

# Schedule 2, Lines 17a through 17z - Other Additional Taxes (Not Transcribed)

3.21.3.84.20.12 (11-12-2021) Schedule 2, Lines 17a through 17z - Other Additional Taxes (Not Transcribed) For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 2, Line 18 - Total Additional Taxes

3.21.3.84.20.13 (10-30-2024) Schedule 2, Line 18 - Total Additional Taxes If line 18 is blank, dash, or zero and there are any entries on lines 17a through 17z, compute and edit line 18 by adding lines 17a through 17z.

# Schedule 2, Line 19 - NET EPE Recapture (Form 4255

3.21.3.84.20.14 (10-30-2024) Schedule 2, Line 19 - NET EPE Recapture (Form 4255 If an amount is present on Schedule 2, line 19, Form 4255 must be attached. If missing, correspond for Form 4255.

# Schedule 2, Line 20 - Section 965 Net Tax Liability Installment (Form 965-A)

3.21.3.84.20.15 (01-04-2021) Schedule 2, Line 20 - Section 965 Net Tax Liability Installment (Form 965-A) If an amount is present on line 20, and Form 965-A is missing, correspond for Form 965-Aonly if corresponding for other missing information. If an amount is present on line 20, edit RPC "F" . Note: If Form 965-A is attached and there is no entry on line 20, do not edit RPC "F" .

# Schedule 2, Line 21 - Total Other Taxes

3.21.3.84.20.16 (01-01-2021) Schedule 2, Line 21 - Total Other Taxes Reserved

# Form 1040-NR, Schedule 3 (Sequence 03) - Additional Credits and Payments

3.21.3.84.21 (01-01-2021) Form 1040-NR, Schedule 3 (Sequence 03) - Additional Credits and Payments For TY20 and later, Schedule 3 may be attached to Form 1040-NR. See line-by-line instructions.

# Schedule 3, Line 1 - Foreign Tax Credit (Form 1116)

3.21.3.84.21.1 (01-01-2021) Schedule 3, Line 1 - Foreign Tax Credit (Form 1116) If credit claimed is more than $300, Form 1116 or similar statement must be attached. If Form 1116 is missing, or if no significant amount is present on line 7, 8, 24, or 35, correspond for Form 1116. Taxpayers earning income in the following countries are not allowed to take a foreign tax credit for foreign taxes paid to these countries. If the taxpayer takes the foreign tax credit (see Form 1116, Part II, line 8) with respect to taxes paid to any of the following countries (see Form 1116, Part I, line i, columns A, B, and C), "X" both Form 1116, line 8 and Schedule 3, line 1. Country Starting Date Ending Date Iran January 1, 1987 Still in Effect North Korea January 1, 1987 Still in Effect Sudan February 12, 1994 Still in Effect Syria January 1, 1987 Still in Effect

# Schedule 3, Line 2 - Credit for Child and Dependent Care Expenses (Form 2441)

3.21.3.84.21.2 (01-01-2021) Schedule 3, Line 2 - Credit for Child and Dependent Care Expenses (Form 2441) If an amount is claimed, Form 2441 must be attached. If missing, take one of the following actions: If a statement is attached, prepare a dummy Form 2441. Otherwise, correspond.

# Schedule 3, Line 3 - Education Credits (Form 8863, Line 19)

3.21.3.84.21.3 (01-04-2021) Schedule 3, Line 3 - Education Credits (Form 8863, Line 19) Line 3 is not a valid line with Form 1040-NR. If Form 8863 is attached, "X" Form 8863.

# Schedule 3, Line 4 - Retirement Savings Contributions Credit (Form 8880)

3.21.3.84.21.4 (01-01-2021) Schedule 3, Line 4 - Retirement Savings Contributions Credit (Form 8880) Correspond for Form 8880 if an amount is claimed on line 4 and Form 8880 is not present.

# Schedule 3, Line 5a - Residential Clean Energy Credit (Form 5695, Line 15)

3.21.3.84.21.5 (01-01-2024) Schedule 3, Line 5a - Residential Clean Energy Credit (Form 5695, Line 15) If an amount is claimed on line 5a, Form 5695 must be attached. If missing, correspond for Form 5695. Note: If an amount is claimed on line 5a and only pages 2 and/or 3 of the Form 5695 are attached, "X" the amount on line 5a.

# Schedule 3, Line 5b - Energy Efficient Home Improvement Credit (Form 5695, Line 32)

3.21.3.84.21.6 (10-30-2024) Schedule 3, Line 5b - Energy Efficient Home Improvement Credit (Form 5695, Line 32) If an amount is claimed on line 5b, Form 5695 must be attached. If missing, correspond for Form 5695. Note: If an amount is claimed on line 5b and only pages 1 and/or 2 of the Form 5695 are attached and page 3 is missing, "X" the amount on line 5b.

# Schedule 3, Lines 6a through 6z - Other Nonrefundable Credits

3.21.3.84.21.7 (01-01-2021) Schedule 3, Lines 6a through 6z - Other Nonrefundable Credits For complete instructions, see IRM 3.11.3, Individual Income Tax Returns. Exception: Line 6d is not a valid line with Form 1040-NR. If Schedule R is attached, "X" Schedule R.

# Schedule 3, Line 6f - Clean Vehicle Credit

3.21.3.84.21.7.1 (10-30-2024) Schedule 3, Line 6f - Clean Vehicle Credit For TY23 and later, if there is an amount on line 6f, Form 8936 and Form 8936 Schedule A must be attached. If missing, correspond for Form 8936 and Form 8936 Schedule A.

# Schedule 3, Line 6m - Credit for Previously Owned Clean Vehicles

3.21.3.84.21.7.2 (10-30-2024) Schedule 3, Line 6m - Credit for Previously Owned Clean Vehicles For TY23 and later, if there is an amount on line 6m, Form 8936 and Form 8936 Schedule A must be attached. If missing, correspond for Form 8936 and Form 8936 Schedule A.

# Schedule 3, Line 7 - Total Other Nonrefundable Credits

3.21.3.84.21.8 (10-30-2024) Schedule 3, Line 7 - Total Other Nonrefundable Credits If line 7 is blank, dash, or zero and there are any entries on lines 6a through 6z, compute and edit line 7 by adding lines 6a through 6z.

# Schedule 3, Line 9 - Net Premium Tax Credit (Form 8962)

3.21.3.84.21.9 (01-01-2021) Schedule 3, Line 9 - Net Premium Tax Credit (Form 8962) If an amount is claimed on Schedule 3, line 9, Form 8962 must be attached. If missing, correspond. When corresponding for Form 8962 on Form 13900, also correspond for Form 1095-A, if not attached, using paragraph "s" . When corresponding for Form 8962, on Form 9143, also correspond for Form 1095-A if not attached, using the following literal: "Send a copy of your Form 1095-A, Health Insurance Marketplace Statement, to support your entries on Form 8962, Premium Tax Credit. If you didn't receive one or your Form 1095-A is incorrect, visit www.healthcare.gov or your state Marketplace website."

# Schedule 3, Line 10 - Amount Paid with Request for Extension to File (Form 4868)

3.21.3.84.21.10 (01-01-2021) Schedule 3, Line 10 - Amount Paid with Request for Extension to File (Form 4868) Do not perfect line 10 from an attached Form 4868. If the taxpayer indicates a payment from Form 2350, include this amount on line 10.

# Schedule 3, Line 11 - Excess Social Security and Tier 1 RRTA Tax Withheld

3.21.3.84.21.11 (01-01-2021) Schedule 3, Line 11 - Excess Social Security and Tier 1 RRTA Tax Withheld If it appears that ALL Social Security and RRTA tax withheld is claimed, "X" the amount on line 11. Note: Taxpayers having more than one employer may claim a credit for excess Social Security withholding, see IRM 3.11.3, Individual Income Tax Returns. If it is obvious that the taxpayer has a "F" , "J" , "M" , or "Q" Visa and Form 843 is attached, "X" line 11. Detach Form 843, and route it to Accounts Management. Note: When detaching Form 843, also detach Form 8316. These forms must be kept together. If it is obvious that the taxpayer has a "F" , "J" , "M" , or "Q" Visa and Form 843 is not attached: "X" the amount on line 11, Correspond by preparing Form 3696-A to send Letter 513C, Edit Action Trail "513C" on Form 1040-NR, and Continue processing the return.

# Schedule 3, Line 12 - Credit for Federal Tax on Fuels (Form 4136)

3.21.3.84.21.12 (01-01-2021) Schedule 3, Line 12 - Credit for Federal Tax on Fuels (Form 4136) Correspond for Form 4136 if any amount is claimed and Form 4136 is not attached.

# Schedule 3, Line 13a - Form 2439

3.21.3.84.21.13 (01-01-2024) Schedule 3, Line 13a - Form 2439 When the amount claimed on line 13a is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 2439 is not attached, correspond for Form 2439. Note: Form 2439 is a small form and is generally found stapled to the front of the return with Form(s) W-2. For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 3, Line 13b - Credit for Repayment

3.21.3.84.21.14 (10-30-2024) Schedule 3, Line 13b - Credit for Repayment Reserved

# Schedule 3, Line 13c - Elective Payment Election (EPE)

3.21.3.84.21.15 (10-30-2024) Schedule 3, Line 13c - Elective Payment Election (EPE) If an amount is present, Form 3800 must be attached. If missing, correspond for Form 3800.

# Schedule 3, Line 13z - Other Refundable Credits

3.21.3.84.21.16 (10-29-2025) Schedule 3, Line 13z - Other Refundable Credits Correspond for an explanation when the amount claimed on line 13z is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the type of credit is not identified. Exception: If taxpayer cites IRC Section 1341 or "Claim of Right" , do not correspond for documentation. See IRM 3.11.3, Individual Income Tax Returns. If line 13z was used for other refundable credits that do not have a specific line, follow the table below: If the credit claimed is Then Form 8805 If Form 8805 is attached, "X" line 14, Schedule 3 and edit Form 8805 withholding to the dotted portion of Form 1040-NR, line 32. If Form 8805 is not attached, correspond. Form 1042-S If Form 1042-S is attached, "X" line 14, Schedule 3 and edit Form 1042-S withholding to the dotted portion of Form 1040-NR, line 32. If Form 1042-S is not attached, correspond. Form 8288-A If Form 8288-A is attached with a Date of Transfer within the tax period of the return, "X" line 14, Schedule 3 and edit the verified amount of the Form 8288-A withholding to the dotted portion of Form 1040-NR, line 32. If Form 8288-A is attached with a Date of Transfer not within the tax period of the return, "X" line 14. Exception: When a Date of Transfer is in 2026 and Form 843 is not attachedcorrespond. If Form 8288-A is not attached, correspond. If Fuel Tax Credit, FTC or something similar is notated on line 13z, see IRM 3.11.3, Individual Income Tax Returns.

# Schedule 3, Line 14 - Total Other Payments or Refundable Credits

3.21.3.84.21.17 (10-30-2024) Schedule 3, Line 14 - Total Other Payments or Refundable Credits If line 14 is blank, dash, or zero and there are any entries on lines 13a through 13z, compute and edit line 14 by adding lines 13a through 13z.

# Form 1040-NR, Schedule A (Sequence 7A) - Itemized Deductions

3.21.3.84.22 (10-30-2024) Form 1040-NR, Schedule A (Sequence 7A) - Itemized Deductions The following are the T-lines and T-Compute lines for Schedule A (Form 1040-NR): T-Lines T-Compute Lines Line 1a Lines 2 through 8 Line 5 Line 8 "X" Schedule A (Form 1040-NR) if all of the following conditions exist: Schedule A (Form 1040-NR) has no T-line entries present or edited, Schedule NEC has no T-line entries present or edited, and Schedule OI has no T-line boxes marked. If the taxpayer claims a valid treaty exemption, exclusion, or deduction on Schedule A (Form 1040-NR), take the following actions (see Figure 3.21.3-34): "X" the amount entered on Schedule A, Edit the allowable exemption on Form 1040-NR, line 1k, and follow line 1k procedures. Note: Do not "X" , adjust, or compute Schedule A, line 8. Figure 3.21.3-34 This figure contains two graphics. The first graphic represents Form 1040-NR (page 1):The taxpayer name is Richard Bellinger.The TIN is 000-00-7130.The address is 3366 Cooloola St (which is underlined in red) in Melbourne VIC 3000, Australia. A slash is edited in red before and after Australia, along with a dollar ($) sign.The block letters of AS are edited in red across from the city name in the right margin to indicate the country code.The taxpayer checked the single filing status box; so based on the information provided on the return, a Filing Status Code (FSC) 1 is edited in red in the margin to the left of the filing status boxes.Lines 1a and 1z show 26000.00.The second graphic shows Schedule A, Form 1040-NR:Line 1b (total line of state and local taxes) shows 1600.00.Line 6 shows 900.00 (casualty and theft losses).Line 7 shows 2000.00 (the amount of the valid tax treaty).Line 8 shows 4500.00.A valid tax treaty cannot be claimed on Schedule A; so the amount needs to be transferred to page 1 of Form 1040-NR.Returning to page 1, the amount of 2000 is edited in red to line 1k. Line 1a is adjusted to exclude 2000, placing a red X to the left of 26000.00 and editing 24000 in red on the dotted line to the left.Page 1 also contains a text box which states, Exhibit 3.21.3-10 was used to verify the treaty before amounts were moved. Please click here for the text description of the image. If taxpayer claims an invalid treaty exemption, "X" where found. Note: Do not "X" or recompute line 8. Gambling losses cannot be deducted on Schedule A; "X" where found. Note: Do not "X" or recompute line 8. If a resident of India can be determined to be a student or business apprentice using the Form 1040-NR occupation area; Schedule OI, lines E and F (visa J-1, F-1, or H-1 that was previously F-1); Form 8843 with entries in Part III; or from other attachments; and: If Then Both itemized and standard deductions are present on Schedule A "X" the lesser amount of the deductions. See Figure 3.21.3-35. Note: Do not adjust line 8. Itemized deductions on Schedule A are less than the standard deduction claimed on Form 1040-NR, line 12 "X" the itemized deductions where found, and edit the standard deduction to line 7. Note: Do not adjust line 8. Schedule A is blank or not attached and a standard deduction from the table below is claimed on Form 1040-NR, line 12 Dummy Schedule A, and edit the 1040-NR, line 12 amount on lines 7 and 8. Figure 3.21.3-35 This figure represents Schedule A, Form 1040-NR:Line 1a contains the statement, Standard deduction, beside the amount of 15750.Line 1b shows 15750.Lines 2 and 5 show 100.Line 8 shows 15850.There is a text box which states, Residents of India determined to be Students or Business Apprentices: When both itemized and standard deductions are claimed, 'X' the lesser amount.The lines 2 and 5 amounts are X-ed in red because the taxpayer cannot claim both the standard deduction and itemized deductions, and the itemized deductions were the lesser amount.The amount on line 8 was not adjusted. Please click here for the text description of the image. Filing Status Standard Deduction Additional Standard Deduction 1 (65+ or Blind) Additional Standard Deduction 2 (65+ or Blind) Single $15,750 $17,750 $19,750 Married Filing Separately (MFS) $15,750 $16,17,350 $18,950 Qualifying Surviving Spouse (QSS) $31,500 $33,100 $34,700 If a resident of a country other than India OR a resident of India that is not a student or business apprentice claims the standard deduction, "X" line 1a, 7, or where found on Schedule A, Form 1040-NR. Note: Do not "X" line 8 . If a Schedule A (Form 1040) is attached to a Form 1040-NR, dummy a Schedule A (Form 1040-NR) from the attached Schedule A (Form 1040). Transfer the amounts as follows: From Schedule A, Form 1040 (Sequence 07) To Schedule A, Form 1040-NR (Sequence 7A) Line 4 Line 7 Line 5d Line 1a Line 6 Line 7 Line 10 Line 7 Line 11 Line 2 Line 12 Line 3 Line 13 Line 4 Line 14 Line 5 Line 15 Line 6 Line 16 Line 7 Line 17 Line 8

# Line 1a - State and Local Income Tax Total

3.21.3.84.22.1 (01-01-2020) Line 1a - State and Local Income Tax Total If the standard deduction is claimed on line 1a, see IRM 3.21.3.84.22.

# Line 2 - Gifts by Cash or Check

3.21.3.84.22.2 (01-01-2020) Line 2 - Gifts by Cash or Check When two entries are present on line 2 and "See Note" is present in the line 2 area, do not compute the entries. "X" the line 2 amount located directly to the left of "See Note" .

# Line 3 - Contributions Other Than Cash

3.21.3.84.22.3 (01-01-2024) Line 3 - Contributions Other Than Cash If more than $500 is claimed on Schedule A, line 3, Form 8283 with significant entries or a supporting statement must be present. If missing, correspond for Form 8283. When Form 8283 with significant entries or a supporting statement is present, and the amount on Schedule A, line 3 is more than $500, edit RPC "H" . If Schedule A, line 3 is more than $500 and Form 8283 indicates the taxpayer has donated an automobile, airplane, or boat, Form 1098-C must also be present. If Form 1098-C is not attached, "X" Schedule A, line 3. Note: In lieu of Form 1098-C, the taxpayer may attach a similar statement provided it includes all the same information as on Form 1098-C. If the statement does not include all this information, "X" Schedule A, line 3. If Schedule A, line 3 is more than $500,000, Form 8283, Parts IV and V must be completed, and a separate qualified appraisal must be attached. If all these conditions are met, edit RPC "4" . If all these conditions are not met, correspond. If Form 8283 is present and Part I, checkbox 2b is marked, checkbox 2b(1) is marked, or line 3, column (h) contains a value other than zero, edit Audit Code "C" . If Schedule A, line 3 is $20,000 or more, and Form 8283, Part I, checkbox 2a is marked, a separate qualified appraisal must be attached. If a qualified appraisal is not attached, correspond. Use the following literal: "If your total deduction for Art is $20,000 or more, you must attach a complete copy of the signed appraisal."

# Line 4 - Carryover Contributions

3.21.3.84.22.4 (01-01-2015) Line 4 - Carryover Contributions Delete the line 4 amount if the taxpayer has used line 4 as a subtotal line.

# Line 5 - Total Contributions

3.21.3.84.22.5 (01-01-2018) Line 5 - Total Contributions Compute and edit line 5 when it is blank and there are entries leading to a total, unless See Note is present above line 5 or the taxpayer notates "Limited" or similar statement.

# Line 6 - Casualty and Theft Losses

3.21.3.84.22.6 (01-01-2019) Line 6 - Casualty and Theft Losses If an amount is claimed, Form 4684 must be attached. If missing, correspond for Form 4684.

# Line 7 - Other Itemized Deductions

3.21.3.84.22.7 (10-29-2025) Line 7 - Other Itemized Deductions The following are to be included on line 7: Casualty and theft loss from income producing property Impairment-related work expenses of a disabled person Unrecovered investments in a pension Schedule K-1 (amounts reported as itemized deductions from Box 13, Code W, on a partner's K-1, or amounts reported as itemized deductions from Box 12, Code S, on a shareholder's K-1) Repayments under claim of right ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Note: Gambling losses cannot be deducted on Schedule A; "X" where found . Do not adjust line 8. "X" line 7 if any miscellaneous deductions are not listed in IRM 3.21.3.84.22.7 (1) above. Note: Do NOT"X" line 7 when the taxpayer includes an amount but does not include an explanation for the deduction.

# Line 8 - Total Itemized Deductions

3.21.3.84.22.8 (10-30-2024) Line 8 - Total Itemized Deductions Compute and edit line 8 if it is blank, dash, or zero and there are entries leading to a total. Exception: Do not adjust or compute line 8 if adjusting lines 1a through 7.

# Form 1040-NR, Schedule NEC (Sequence 7B) - Tax on Income Not Effectively Connected With a U.S. Trade or Business

3.21.3.84.23 (10-30-2024) Form 1040-NR, Schedule NEC (Sequence 7B) - Tax on Income Not Effectively Connected With a U.S. Trade or Business The following are the T-Lines and T-Compute Lines for Schedule NEC of Form 1040-NR. T-Lines T-Compute Lines Column d (both columns at Nature of Income line) Line 13, column (a) Line 13, column (b) Line 13, column (c) Line 13, column (d) - columns 1 and 2 Line 13, column (a) Line 13, column (b) Line 13, column (c) Line 13, column (d) - columns 1 and 2 "X" Schedule NEC if all of the following conditions exist: Schedule A (Form 1040-NR) is missing, Schedule NEC has no T-line entries present or edited, and Schedule OI has no T-line boxes marked. Income not effectively connected with a U.S. trade or business is reported on Schedule NEC. Income from the following forms is not effectively connected: Social Security/Railroad Retirement Form SSA-1042S and Form RRB-1042S - For processing instructions, see IRM 3.21.3.83.11. Gambling winnings (Form 1042-S, Income Code 28 or 23) - For processing instructions, see IRM 3.21.3.84.23.1. Note: Professional gambling is considered effectively connected income; see exception at IRM 3.21.3.84.23.1 (1). Note: Real property may be treated as effectively connected income if reported on Schedule E and Schedule 1. To determine the country in which the filer is a tax resident, review: Schedule OI, taxpayer response to Question B, Question A, caption or attachments. If country of tax residence cannot be determined, correspond. Income not effectively connected is taxed at a rate of 30% unless a U.S. tax treaty with the filer's country of tax residency prescribes a lower rate. If the taxpayer enters a rate lower than 30%, verify the rate entered using Exhibit 3.21.3-9. Edit the total correct amount to Form 1040-NR, line 23a. Do not adjust or compute line 24. If the filer uses a higher rate than the one indicated in Exhibit 3.21.3-9, accept the taxpayer's figure. If the rate cannot be determined, use the 30% tax rate. A taxpayer who is a tax resident of a foreign country with which the U.S. has not concluded an income tax treaty is generally taxed at a flat rate of 30% on his U.S. source not effectively connected income. Schedule NEC, line 15 should equal Form 1040-NR, line 23a. If amounts are present on Schedule NEC and no amount is present on Form 1040-NR, line 23a, compute and edit the line 23a amount. Do not adjust or compute line 24.

# Gambling Winnings

3.21.3.84.23.1 (10-30-2024) Gambling Winnings Gambling winnings are non-effectively connected income. Exception: Professional gambling income is effectively connected and is reported on Schedule 1, page 1 with supporting Schedule C for TY19 and later, or on Form 1040-NR, page 1 with supporting Schedule C prior to TY19. Gambling winnings are not reducible by gambling losses. Exception: Residents of Canada are allowed to claim gambling losses up to winnings. Gambling income won in the U.S. by residents of the following foreign countries is not taxable by the U.S.: Austria Belgium Bulgaria Chile (see note below) Czech Republic Denmark Finland France Germany Hungary (see note below) Iceland Ireland Italy Japan (effective 2005) Latvia Lithuania Luxembourg Netherlands Russian Federation (Russia) (see note below) Slovak Republic (Slovakia) Slovenia South Africa Spain Sweden Tunisia Turkey Ukraine United Kingdom (including Great Britain, England, Northern Ireland, Scotland, and Wales) Note: The U.S.-Chile income tax treaty entered into effect with respect to taxes withheld at source paid or credited on or after February 1, 2024, and for other taxes for taxable periods beginning on or after January 1, 2024. Accordingly, beginning in 2024, gambling winnings paid to a resident of Chile should be treated as not subject to U.S. tax. Note: The U.S.-Hungary tax treaty was terminated in 2023 and ceased to have effect with respect to U.S. withholding tax after January 1, 2024. Beginning in 2024, it may not be relied upon to exclude gambling winnings of a resident of Hungary from U.S. tax. Note: The U.S.-Russia tax treaty is suspended for these taxes as of August 16, 2024. It may not be relied upon after that date to exclude gambling winnings from U.S. tax. Note: Gambling income won in the U.S. by residents of Malta is taxed at 10%. Reminder: If Form 1040-NR, line 11a is blank, dash, or zero, or edited to be blank and Form 1040-NR, line 23a is significant, edit RPC "J" . Residents of Canada may claim gambling losses, but only to the extent of gambling winnings. The net gambling income (winnings minus losses), which is taxed at 30%, should be on Schedule NEC, line 10c, column (c). If the taxpayer has not entered 30% of the net gambling income on Form 1040-NR, line 23a, edit 30% of their net gambling income to line 23a. If the taxpayer does not claim losses, edit 30% of their gross winnings on Form 1040-NR, line 23a. Note: Do not calculate gambling losses if the taxpayer has not reported losses on their tax return. Caution: When determining if a taxpayer is a resident of Canada, do not use the address in the caption. The country of residence should be determined by Schedule OI, questions B and/or A or Form 1040-NR-EZ, page 2. Additionally, refer to the 1042-S payee address and country identification. If a taxpayer is not a resident of Canada and tries to reduce gambling winnings by gambling losses, multiply the gross winnings by 30% and edit the result to Form 1040-NR, line 23a. Do not adjust or compute line 24. All countries not listed in IRM 3.21.3.84.23.1 (3) are taxed at a rate of 30%, except Malta which is taxed at 10%. If gambling winnings are reported on Schedule 1, page 1 or on Form 1040-NR, page 1, "X" the amount where found, and Multiply the amount of gross gambling winnings by 30%, Edit the result to Form 1040-NR, line 23a, and Do not adjust or compute line 24. See Figure 3.21.3-36. Exception: If a country is exempt from U.S. tax on gambling winnings, "X" income where found. Exception: Professional gambling income is effectively connected and is reported on Schedule 1, page 1 with supporting Schedule C for TY19 and later, or on Form 1040-NR, page 1 with supporting Schedule C prior to TY19. If Schedule C is attached to the return to report gambling winnings and gambling losses: If exempt from U.S. tax, "X" Schedule C. Do not edit a tax amount to Form 1040-NR, line 23a. If not exempt from U.S. tax, "X" Schedule C. Multiply the gross gambling winnings by 30%, and edit the result to Form 1040-NR, line 23a. Do not adjust or compute line 24. Exception: For residents of Canada, see IRM 3.21.3.84.23.1 (4). Withholding from Form 1042-S for gambling winnings should be reported on Form 1040-NR, line 25g. If reported on any other line, edit or arrow to line 25g. Caution: Withholding from gambling winnings is not always reported on a "standard-format" Form 1042-S; casinos often issue Form 1042-S in a format that looks like a commercial-type receipt. If a taxpayer provides a Form 1042-S in receipt-format as support for withholding on Form 1040-NR, line 25g, accept the receipt if issued by a business if it includes the date, recipient information, the amount of gambling winnings, and the amount of tax withheld. See Exhibit 3.21.3-17 for a sample. Figure 3.21.3-36 This figure contains 4 graphics. The first graphic represents the lower half of Form 1040-NR (page 1). The amount of 2800.00 is present on lines 8, 9, and 11a.The second graphic represents a folded Form 1040-NR, page 2:The amount of 2800.00 is present on line 11bThe amount of 281.00 is present on lines 16 and 24.The amount of 840.00 is present on line 25a.The third graphic represents Schedule 1. Gambling income appears on line 8a, with the amount 2800.00. The amount 2800.00 is repeated on lines 9 and 10.The fourth graphic represents Form 1042-S:The income code in box 1 is 28 (Gambling).Box 2 (gross income) shows the amount of 2800.Box 3 Chapter indicator is 3.Box 3a Exemption code is 00.Box 3b Tax rate is 30%.Box 10 Total withholding credit is 840.Box 12a Withholding agent's EIN is 00-4682469.Box 12d Withholding agent's name is Gopher's Casino.Box 12h Address is 713 Lamb Way.Box 12i City or town, state or province, country, ZIP or foreign postal code is Oklahoma City, OK 7125.Box 13a Recipients name is Ana Maria Nazas.Box 13b Recipient's country code is MX.Box 13c Address is Av Bosencheve 833.Box 13d City or town, state or province, country, ZIP or foreign postal code is 72688 Puebla, Mexico.Box 13e Recipient's U.S. TIN, if any is 000-00-0650.Returning to the first graphic:Lines 8, 9, and 11a, are X-ed in red because gambling cannot be claimed on page 1.A text box on page 1 states: Taxpayer is not a resident of Canada.An RPC code of J is edited in block letter in the lower-left margin of page 1. The J is edited to show that there is tax on line 24, but no adjusted gross income on line 11.Returning to the second graphic: Gambling winnings for Mexico are taxed at 30%. There is a box multiplying the winnings of 2800 by .30 (tax rate), to determine the tax is 840. The line 11b amount of 2800.00 is X-ed in red. The amount of 84 is edited in red on line 23a. The withholding amount of 840.00 that is on line 25a has been arrowed down to line 25g in red by the tax examiner. The amount is arrowed down because the withholding is from a Form 1042-S, which belongs on line 25g.Returning to the third graphic, Schedule 1 is X-ed in red since there are no T-lines left after deleting the entries. Please click here for the text description of the image.

# Alimony

3.21.3.84.23.2 (01-04-2021) Alimony If alimony income is being reported on Schedule NEC, consider it not effectively connected income; calculate the tax using the Pensions and Annuities tax rate indicated in Exhibit 3.21.3-9. If the taxpayer has reported alimony income received on Form 1040-NR, line(s) 1a through 7a, or Schedule 1, lines 1 through 7, edit the entry to Schedule 1, line 9.

# Awards and Prizes

3.21.3.84.23.3 (01-01-2017) Awards and Prizes Awards and prizes are not effectively connected income and are reported on Schedule NEC and all countries are taxed at 30%.

# Schedule NEC Column (d)1 - Other (specify)

3.21.3.84.23.4 (01-01-2015) Schedule NEC Column (d)1 - Other (specify) The percentage column labeled Other (specify) must be edited if an amount is present or edited to line 13(d)1. Edit the column with the three-digit number obtained by multiplying the taxpayer's percentage by 10 (use a leading zero if necessary). See Figure 3.21.3-37. For example: If the taxpayer enters: Edit: 9% 090 20% 200 27.5% 275 Note: If the taxpayer enters 0 percent (%), exempt, none, N/A, or does not indicate a percentage, edit "000" above column (d)1. If the taxpayer enters the percent in the column "Other (specify)" as: 10%, edit amount from 13(d)1 to 13(a) 15%, edit amount from 13(d)1 to 13(b) 30%, edit amount from 13(d)1 to 13(c) Figure 3.21.3-37 This figure represents Schedule NEC which is where the taxpayer reports tax on income not effectively connected with a U.S. trade or business. Under column (a) for the tax rate of 10%, there is an amount of 400 on line 1b, with the total of 400 on line 13. Under column (d1) for other, there is a tax rate of 27.5%, an amount of 3450 on line 12, and a total of 3450 on line 13. Under column (d2) for the tax rate of 0%, there is an amount of 600 on line 3 with the total of 600 on line 13. Per the IRM, when an amount is in the other column (d), it must be written without a percentage. The new amount for the left column (d1) written above it in red is 275 and in the right column (d2) written directly above it in red is 000. Please click here for the text description of the image.

# Schedule NEC Column (d)2 - Other (specify)

3.21.3.84.23.5 (01-01-2015) Schedule NEC Column (d)2 - Other (specify) The percentage column labeled Other (specify) must be edited if an amount is present or edited to line 13(d)2. Edit the column with the three-digit number obtained by multiplying the taxpayer's percentage by 10 (use a leading zero if necessary). See Figure 3.21.3-37. For example: If the taxpayer enters: Edit: 9% 090 20% 200 27.5% 275 Note: If the taxpayer enters 0 percent (%), exempt, none, N/A, or does not indicate a percentage, edit "000" above column (d)2. If the taxpayer enters the percent in the column "Other (specify)" as: 10%, edit amount from 13(d)2 to 13(a) 15%, edit amount from 13(d)2 to 13(b) 30%, edit amount from 13(d)2 to 13(c)

# Line 13 Column (a) 10% - Total U.S. Tax Withheld At Source

3.21.3.84.23.6 (01-01-2015) Line 13 Column (a) 10% - Total U.S. Tax Withheld At Source Compute and edit if blank and there are entries leading to a total.

# Line 13 Column (b) 15% - Total U.S. Tax Withheld At Source

3.21.3.84.23.7 (01-01-2015) Line 13 Column (b) 15% - Total U.S. Tax Withheld At Source Compute and edit if blank and there are entries leading to a total.

# Line 13 Column (c) 30% - Total U.S. Tax Withheld at Source

3.21.3.84.23.8 (01-01-2015) Line 13 Column (c) 30% - Total U.S. Tax Withheld at Source Compute and edit if blank and there are entries leading to a total.

# Line 13 Column (d)1 Other % - Total U.S. Tax Withheld at Source

3.21.3.84.23.9 (01-01-2015) Line 13 Column (d)1 Other % - Total U.S. Tax Withheld at Source Compute and edit if blank and there are entries leading to a total. Reminder: If an amount is present or edited to line 13 column (d)1, the corresponding column percentage must be edited.

# Line 13 Column (d)2 Other % - Total U.S. Tax Withheld at Source

3.21.3.84.23.10 (01-01-2015) Line 13 Column (d)2 Other % - Total U.S. Tax Withheld at Source Compute and edit if blank and there are entries leading to a total. Reminder: If an amount is present or edited to line 13 column (d)2, the corresponding column percentage must be edited.

# Form 1040-NR, Schedule OI (Sequence 7C) - Other Information

3.21.3.84.24 (01-01-2023) Form 1040-NR, Schedule OI (Sequence 7C) - Other Information The following are the T-Lines and T-Compute Lines for Schedule OI of Form 1040-NR. T-Lines T-Compute Lines Line M1 box There are no T-Compute lines Line M2 box "X" Schedule OI when all of the following conditions exist: Schedule A (Form 1040-NR) is missing, Schedule NEC is missing, and Schedule OI has no T-line boxes marked.

# Dual-Status Returns

3.21.3.85 (01-01-2015) Dual-Status Returns The following subsections discuss processing returns of taxpayers claiming Dual-Status.

# Dual-Status - General Instructions

3.21.3.85.1 (01-01-2023) Dual-Status - General Instructions A taxpayer who is a resident alien and a nonresident alien in the United States within the same tax year files a Dual-Status tax return. This condition usually occurs in the year of arrival in the U.S. or year of departure from the U.S. The taxpayer will file Form 1040 with a Form 1040-NR or Form 1040-NR-EZ attached, or Form 1040-NR or Form 1040-NR-EZ with a Form 1040 attached for the tax year based on the place of the taxpayer's residence on the last day of the year. The taxpayer files Form 1040 with a Form 1040-NR or Form 1040-NR-EZ attached if they are a resident of the U.S. on the last day of the year. The taxpayer files Form 1040-NR or Form 1040-NR-EZ with a Form 1040 attached if they are NOT a resident of the U.S. on the last day of the year. Follow the intent of the taxpayer, and process the return that is identified as the "Dual-Status Return" if there is an indication they entered or left the United States in December. See Schedule OI, question "G" or Form 1040-NR-EZ, page 2, question "G" . Effectively Connected Income earned in the U.S. by a nonresident alien is taxed at normal U.S. rates, but special restrictions apply to deductions and filing status. Non Effectively Connected Income - Annuities, dividends, interest, capital gains, rents, and royalties from U.S. sources received while the taxpayer is a nonresident alien are taxed at a rate of 30%, or lower, depending on any treaty rate which might have been established with the country involved. See Exhibit 3.21.3-9. IRC 6013(g) and IRC 6013(h) - The taxpayer can elect to file a Married Filing Jointly (FS "2" ) return and report worldwide income (income from all sources and includes foreign and U.S. income) under IRC 6013(g) or IRC 6013(h). If a taxpayer chooses this election, DO NOT PROCESS AS DUAL-STATUS. To qualify under 6013(g) or 6013(h), one taxpayer must be a U.S. resident alien or U.S. citizen. These taxpayers are not allowed to claim tax treaty benefits. Article XXV of the U.S.–- Canada Income Tax Treaty - see IRM 3.21.3.83.5. Foreign Earned Income Exclusion - Dual-Status taxpayers are allowed a Foreign Earned Income Exclusion on the portion of their income reported on the Form 1040 in accordance with the rules of Form 2555 and Form 2555-EZ (TY18 and prior) regarding number of days, etc.

# Restrictions for Dual-Status Taxpayers

3.21.3.85.2 (01-01-2023) Restrictions for Dual-Status Taxpayers Dual-Status taxpayer restrictions are listed below: Dual-Status taxpayers cannot file as Married Filing Jointly (FS "2" ). Dual-Status taxpayers cannot file as Head of Household (FS "4" ). Dual-Status taxpayers cannot claim the standard deduction/additional standard deduction. Exception: Taxpayers who are students or business apprentices from India are eligible to claim the standard deduction under "Article 21(2)" of the United States - India treaty. Dual-Status taxpayers cannot claim Education Credits. If the taxpayer claims the education credit, "X" where found and "X" Form 8863, if attached. Dual-Status taxpayers cannot claim the Recovery Rebate Credit (RRC). If the taxpayer claims the RRC, "X" where found.

# Processing Dual-Status Returns

3.21.3.85.3 (10-29-2025) Processing Dual-Status Returns If the taxpayer identifies Form 1040 as a Dual-Status Return (controlling document), then Form 1040-NR, Form 1040-NR-EZ or a statement must be attached as a "Dual-Status Statement." If the taxpayer identifies Form 1040-NR or Form 1040-NR-EZ as a "Dual-Status Return" (controlling document), then Form 1040 or a statement must be attached as a Dual-Status Statement. If a Dual-Status Statement or Dual-Status Return is missing, correspond. When corresponding for a "Dual-Status Return," with Form 13900, code the "Dual-Status Statement" as the controlling document. Note: When corresponding for Form 1040 as the missing "Dual-Status Return," edit CCC "Y" instead of CCC "E" on the Form 1040-NR"Dual-Status Statement." If Form 8854, Initial and Annual Expatriation Statement, is attached: If the return is unnumbered and there is no LB&I stamp indicating LB&I reviewed the return, stop coding and route the entire return to Stop 4301 AUSC. If the return is unnumbered and there is an LB&I stamp indicating LB&I received the return, edit Audit Code "K" and continue processing, following Dual-Status instructions, even if the taxpayer indicates present in the U.S. for 0 days. If the return is numbered, edit Audit Code "K" and continue processing, following Dual-Status instructions, even if the taxpayer indicates present in the U.S. for 0 days. Use information from Schedule OI questions, Form 1040-NR-EZ, page 2 questions, attached statement, or elsewhere on the return to determine which return is the controlling document to be processed. Caution: If the taxpayer indicates presence in the U.S. for 365 or 366 days, fully code Form 1040 as international and "X" the Form 1040-NR or Form 1040-NR-EZ. If the taxpayer indicates presence outside the U.S. for 365 or 366 days (present in the U.S. for 0 days), and Form 8854 is not attached fully code Form 1040-NR or Form 1040-NR-EZ and "X" the Form 1040. Ensure that all income is reported on the form that is being processed; do not follow any other Dual-Status instructions. Rebatch following local procedures. If the taxpayer is a U.S. resident at the end of the year, Form 1040 is to be processed. If the taxpayer is a nonresident at the end of the year, Form 1040-NR or Form 1040-NR-EZ is to be processed. Follow the intent of the taxpayer and process the return that is identified as the "Dual-Status Return" if there is an indication they entered or left the United States in December. If unable to determine which return to process from the Schedule OI questions of Form 1040-NR, page 2 questions of Form 1040-NR-EZ, an attached statement, or elsewhere on the return, process the return that is identified by the taxpayer as the "Dual-Status Return." If unable to determine which return should be processed using (a) or (b) above, process Form 1040-NR as the Dual-Status Return and correspond for dual-status dates. In general, dual-status taxpayers may be eligible for treaty benefits only with respect to income received during the period that they were nonresident aliens. The amount of income exempt by a tax treaty and the treaty article under which an exemption is claimed must be reported and validated on Form 1040-NR or Form 1040-NR-EZ. Additionally, a Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), may need to be filed with the Form 1040-NR or Form 1040-NR-EZ. Note: Resident Aliens may be entitled to treaty benefits with respect to certain categories of income (students, apprentices, trainees, teachers, professors, and researchers) . Validate the treaty using Exhibit 3.21.3-10. If the Form 1040 is the controlling document, see IRM 3.21.3.85.4. If the Form 1040-NR or Form 1040-NR-EZ is the controlling document, see IRM 3.21.3.85.5. Accept the taxpayer's signature on either the Form 1040, or Form 1040-NR or Form 1040-NR-EZ, regardless of which return is the controlling document.

# Processing Form 1040 Dual-Status Returns

3.21.3.85.4 (10-29-2025) Processing Form 1040 Dual-Status Returns The taxpayer is permitted to use Form 1040-NR, Form 1040-NR-EZ, or a statement (showing income for the part of the year they were a nonresident) as a "Dual-Status Statement." If necessary, edit data from the "Dual-Status Statement" to perfect the Form 1040 return. Edit "D/S" in the upper-center margin. Edit RPC "1" , RPC "B" , and CCC "Y" . The Filing Status Code (FSC) can be "1" , "3" , "5" , or "6" . Caution: Taxpayers can elect to file a Married Filing Jointly (FS 2) return and report worldwide income (income from all sources and includes foreign and U.S. income) under IRC 6013(g) or IRC 6013(h). However, if a taxpayer chooses this election, DO NOT PROCESS AS DUAL-STATUS; process the return as a Form 1040. To qualify under 6013(g) or 6013(h), one taxpayer must be a U.S. resident alien or U.S. citizen. These taxpayers are not allowed to claim tax treaty benefits unless they are residents of India (students/business apprentices). Use the following table to edit the correct Filing Status Code (FSC) on Form 1040: FS Box Marked on 1040 And Then Single Edit FSC "1" . Married filing jointly Taxpayers are students/business apprentices from India Take the following actions: Edit FSC "6" . Ensure that there is only one name in the caption area. Married filing jointly Taxpayer elects to file a Married Filing Jointly return and report worldwide income( income from all sources and includes foreign and U.S. income) under IRC 6013(g) or IRC 6013(h) DO NOT PROCESS AS Dual-Status. Follow instructions to process Form 1040 and "X" Form 1040-NR. Married filing jointly Only one of the taxpayers has income and criteria above are not met Edit FSC "6" , and circle out the name of the taxpayer that has no income. See Figure 3.21.3-38. Married filing jointly Both taxpayers have income and criteria above are not met Correspond for separate returns. See Figure 3.21.3-39. Married filing separately (MFS) Spouse is not claimed as a dependent Edit FSC "3" . Married filing separately (MFS) Spouse is claimed as a dependent Edit FSC "6" . Head of household (HOH) Edit FSC "3" . Do not allow claim for dependent spouse. Qualifying surviving spouse (QSS) No spousal date of death, or date of death was within the two years before the tax year of the return Edit FSC "5" . Qualifying surviving spouse (QSS) Spousal date of death was more than two years before the tax year of the return Edit FSC "1" . If none of the above scenarios apply Edit FSC "1" . Figure 3.21.3-38 This figure represents four graphics. The first graphic is the top portion of page 1 of Form 1040:The filing status box for married filing jointly is checked by the taxpayer.The primary taxpayer's name is Trudy Avocado.The primary TIN is 000-00-3991.The secondary taxpayer's name is Benjamin Avocado.The secondary TIN is 000-00-9193.Their address is 206 Lemon Street in Tampa, FL, and the ZIP code is 33602.Lines 1a, 1z, 9, and 11a are 68000.There is a text box that states: Only one taxpayer has income.The second graphic is Form W-2 for Trudy Avocado. The address is 206 Lemon St in Tampa, FL, the ZIP code is 33602, and Trudy's TIN is 000-00-3991. Her employer is Olive Corp., and their address is 93 Papaya Way in Tampa, FL and the ZIP code is 33602. The employer identification number is 00-8762196, and the wages are 68000.00 in box 1. The withholding is 6700.00 in box 2.The third graphic is the top portion of Form 1040-NR (page 1) for Trudy Avocado. The TIN is 000-00-3991, and her address is 206 Lemon St in Tampa, FL. The ZIP code is 33602. The filing status is married filing separately. There is a statement written across the top which states, Dual-Status Statement.The fourth graphic shows a section of Schedule OI, question G. Question G is for the taxpayer to fill-in the dates they entered and left the U.S. during the year, which are entered 1/10/24, left 5/15/24, re-entered 8/19/24. This information indicates that the Form 1040 should be processed as the dual-status return.Returning to the first graphic, D/S is edited in red in the top-center margin. The dual-status 1040 cannot be married filing jointly; so the taxpayer with no income (Benjamin Avocado) is circled out in red in the entity. The filing status 6 is edited in red to the left of the filing status area. Computer Condition Code (CCC) Y is edited in red to the right of Head of Household (HOH) in the Filing Status area. Return Processing Codes (RPC) of 1 and B are edited in the lower-left margin horizontally.The Form 1040-NR has been X-ed. Please click here for the text description of the image. Figure 3.21.3-39 This figure contains five graphics. The first graphic is the top portion of Form 1040-NR, page 1 with the statement, Dual-Status, written across the top margin by the taxpayer. The name line shows Hellene and Gregory Clover and one TIN of 000-00-1321 (Hellene's). The Form 1040-NR has been X-ed.The second graphic shows Form 1040, page 1:The statement, Dual-Status, is written across the top margin by the taxpayer.D/S has been edited in red above Dual-Status.The primary taxpayer is Hellene Clover.The primary TIN is 000-00-1321.The secondary taxpayer is Gregory Clover.The secondary TIN is 000-00-3991.The address is 654 Tulip Rd. in Miami, FL, and the ZIP code is 33152.CCC Y has been edited in red to the right of Head of household (HOH) in the Filing Status area.The amount of 85000 is on lines 1a, 1z, 9, and 11a.RPC 1 and B have been edited in red horizontally in the bottom-left margin.The third graphic shows a section of Schedule OI, question G. Question G is for the taxpayer to fill-in the dates that they entered and left the U.S. during the year, which shows entered 03/24/25.The fourth graphic is Form W-2 for Hellene Clover. The address is 654 Tulip Rd in Miami, FL, and the ZIP code is 33152. The TIN is 000-00-1321. Hellene's employer is Lotus Farms, their address is 1122 Lilac St in Cleveland, OH, and the ZIP is 44101. The employer identification number is 00-7412584, the wages are 50000.00 in box 1, and the withholding is 15000.00 in box 2.The fifth graphic is Form W-2 for Gregory Clover. The address is 654 Tulip Rd. in Miami, FL, and the Zip code is 33152. The TIN is 000-00-3991. Gregory's employer is Crocus Bank, their address is 1 Daisy Blvd. in Tampa, FL, and the ZIP is 33602. The employer identification number is 00-9512037, the wages are 35000.00 in box 1, and the withholding is 5250.00 in box 2.There is a text box which says, Correspond for separate returns. Both taxpayers have income and cannot file jointly on a dual-status return. Please click here for the text description of the image. Code all dependents to the correct dependent position. For complete instructions, see IRM 3.11.3, Individual Income Tax Returns. Edit a Received date, if not present. If the standard deduction is claimed, leave an action trail indicating a dual-status taxpayer claiming standard deduction "D/S SD" . Exception: Taxpayers who are students or business apprentices from India are eligible to claim the standard deduction under Article 21(2) of the United States - India Treaty. Include total tax withheld and the amounts from the attached "Dual-Status Statement" (Form 1040-NR, lines 25d - 25g, or Form 1040-NR-EZ, lines 18a - 18b) on Form 1040, line 25d. Combine all related T-Line amounts. Reminder: Add all T-Line amounts together from both forms and watch for amounts that are identical and may have already been transferred by the taxpayer. Exception: If taxpayer's entries are identical on both Form 1040 and Form 1040-NR or Form 1040-NR-EZ, do not combine the figures from the two returns. See Figure 3.21.3-40. Figure 3.21.3-40 This figure contains four graphics. The first graphic shows Form 1040, page 1:Dual- Status Return is written across the top margin by the taxpayer.The name is Bethan Darter.The TIN is 000-00-6734.The address is 155 Haddock Place in Pittsburgh, Pa., and the ZIP code is 15219.Lines 1a, and 1z show 36000.Lines 12 and 14 are showing 14600.Line 15 is showing 21400.The second graphic shows the top portion of Form 1040 page 2.Lines 12e and 14 show 15750.Line 15 shows 21000.Line 16 shows 2279.The third graphic shows a part of Form 1040-NR, page 1 containing Dual-Status Return written by the taxpayer across the top-center margin. The name is Bethan Darter and the TIN is 000-00-6734. The address is 155 Haddock Place. Lines 1a, 1z, 9, and 11a show 36000. There is a large red X covering the entire page from corner to corner to show that the form is not to be processed.The third graphic shows a section of Schedule OI, question G. Question G is for the taxpayer to fill in the dates that they entered and left the U.S. during the year. The date shows entered 02/19/25.Returning to the first graphic of Form 1040, page 1:A text box states, Process Form 1040 since the taxpayer was in the U.S. at the end of the year.D/S has been edited in red in the top-center margin.The filing status single box was checked by the taxpayer. A 1 has been edited in red to the left of the filing status area.A Computer Condition Code (CCC) Y is edited in red to the right of Head of household (HOH)in the Filing Status area. The Return Processing Codes (RPC) of 1 and B are edited in red in the lower-left margin horizontally.D/S SD has been edited as an action trail in red in the left margin since the standard deduction was claimed.The entries do not need to be combined since the taxpayer completed both forms with the same amounts. Please click here for the text description of the image. If treaty income is reported on Form 1040-NR or Form 1040-NR-EZ: Do not include valid treaty income exclusion on Form 1040. If tax treaty is not valid, ensure that the income is reported on the appropriate line of Form 1040. If the treaty exclusion is claimed on Form 1040 or Schedule 1, "X" the treaty exclusion. Edit tax on not effectively connected income from line 23a, Form 1040-NR to Schedule 2, line 18 if not already included. Edit or combine T-line amounts from Schedule A, Form 1040-NR to Schedule A, Form 1040. Transfer the amounts as follows: From Schedule A, Form 1040-NR (Sequence 7A) To Schedule A, Form 1040 (Sequence 07) Line 1a Line 5a Line 1b Line 7 Line 2 Line 11 Line 3 Line 12 Line 4 Line 13 Line 5 Line 14 Line 6 Line 15 Line 7 Line 16 Line 8 Line 17 Process the return using Form 1040 line-by-line instructions and the transcribed forms and schedules instructions. Exception: Taxpayers may not claim the Recovery Rebate Credit (RRC) on Dual-Status returns. If an amount for RRC is present on a Dual-Status return, "X" it. Caution: If multiple forms and schedules are attached, determine whether they are duplicates or multiples by comparing amounts with entries on Form 1040. If duplicates are attached, perfect the forms or schedules that support the Form 1040 and "X" all duplicates. Dual-status taxpayers are allowed to claim the Foreign Earned Income Exclusion, Housing Deduction and Housing Exclusion on the Form 1040 portion of their income using a valid Form 2555 or Form 2555-EZ (TY18 and prior). "X" Form 1040-NR or Form 1040-NR-EZ. Ensure that Form 1040 is the top document in the return package.

# Processing Form 1040-NR and Converted Form 1040-NR-EZ Dual-Status Returns

3.21.3.85.5 (10-30-2024) Processing Form 1040-NR and Converted Form 1040-NR-EZ Dual-Status Returns If Form 1040-NR-EZ is the "Controlling Document," convert to Form 1040-NR before combining with the "Dual-Status Statement." The taxpayer is permitted to use Form 1040, Form 1040-A (TY17 and prior), Form 1040-EZ (TY17 and prior), or a statement (showing income for the part of the year they were a resident) as a "Dual-Status Statement." If necessary, edit data from the "Dual-Status Statement" to perfect the Form 1040-NR. Edit "D/S" in the top-center margin. Edit RPC "1" . Edit CCC "E" . The Filing Status Code (FSC) can be "1" , "3" , or "6" . To determine the correct Filing Status Code (FSC) to edit on the Form 1040-NR: If a filing status box is marked on a Form 1040, take one of the following actions: FS Box Marked on 1040 And Then Single Edit FSC "1" . Married filing jointly Only one of the taxpayers has income Edit FSC "6" , and circle out the name of the taxpayer that has no income. Married filing jointly Both taxpayers have income Correspond for separate returns. Married filing separately (MFS) Spouse is claimed as a dependent Edit FSC "6" . Married filing separately (MFS) Spouse is not claimed as a dependent Edit FSC "3" . Head of household (HOH) Edit FSC "3" . If a filing status box is not marked on a Form 1040, take one of the following actions: FS Box Marked on 1040-NR And Then Single Edit FSC "1" . Married filing separately (MFS) Edit FSC "3" . Multiple boxes marked or no boxes marked Spouse is not claimed as a dependent Edit FSC "1" . Multiple boxes marked or no boxes marked Spouse is claimed as a dependent Edit FSC "3" . Edit Country Code. See IRM 3.21.3.84.5.1. Code all dependents to the correct dependent positions. For complete instructions, see IRM 3.11.3, Individual Income Tax Returns. For additional dependent editing, see IRM 3.21.3.84.7.1. Edit the received date, if not present. Combine all related T-Line amounts from Form 1040 and Form 1040-NR or Form 1040-NR-EZ. See Figure 3.21.3-41. Reminder: Add all T-Line amounts together from both forms, and watch for amounts that are identical and may have already been transferred by the taxpayer. Exception: If taxpayer's entries are identical on both Form 1040 and Form 1040-NR or Form 1040-NR-EZ, do not combine the figures from the two returns. Figure 3.21.3-41 This figure contains 3 graphics. The first graphic shows Form 1040-NR, page 1:Dual-Status is written in the top margin by the taxpayer.The name line shows Gloria Petteril.The TIN is 000-00-5371.The address is 5538 Stour Mews (underlined in red) in Liverpool, United Kingdom, and foreign postal code of L641AP. The country of United Kingdom has a slash edited in red before and after the country name, along with a dollar sign ($).The block letters UK are edited in red to the right of the city name in the right margin to indicate the country code.Lines 1a, 1z, 9, and 11a show 76000.The second graphic shows a part of Form 1040, page 1 containing, Dual-Status, written by the taxpayer in the top-center margin. The name is Gloria Petteril and the TIN is 000-00-5371. Lines 1a, 1z, 9, and 11a show 47000.The third graphic shows a section of Schedule OI, question G. Question G is for the taxpayer to fill in the dates that they entered and left the U.S. during the year. The date reads departed 05/18/25. Therefore, a text box is shown on Form 1040-NR which states Process Form 1040-NR since the taxpayer was out of the country at the end of the year.Returning to the first graphic of Form 1040-NR, page 1, D/S is edited in red in the top-center margin. A Computer Condition Code (CCC) E is edited in red to the right of the Trust checkbox n the Filing Status area. A Filing Status Code (FSC) of 1 is edited in red in the margin to the left of the filing status boxes. Lines 1a, 1z, 9, and 11a have been X-ed in red, and the new amount of 123000 has been edited in red to the left of each line number to show that the amounts from Forms 1040 and Form 1040-NR have been combined onto the Form 1040-NR. Return Processing Code (RPC) 1 is edited in the lower-left margin.Returning to the second graphic of Form 1040, page 1, there is a large red X covering the entire page from corner to corner to show that the form is not to be processed. Please click here for the text description of the image. Edit or combine T-Line amounts from Schedule A, Form 1040, to Schedule A, Form 1040-NR. Transfer the amounts as follows: From Schedule A, Form 1040 (Sequence 07) To Schedule A, Form 1040-NR (Sequence 7A) Line 4 Line 7 Lines 5a, 5b, and 5c Line 1a Line 6 Line 7 Line 10 Line 7 Line 11 Line 2 Line 12 Line 3 Line 13 Line 4 Line 14 Line 5 Line 15 Line 6 Line 16 Line 7 Line 17 Line 8 If Schedule A (Form 1040-NR) is attached with no entries present or edited, edit "+" after Sequence Code 7A. Process the return using Form 1040-NR line-by-line instructions and the transcribed forms and schedules instructions. Exception: Do not "X" Schedule A (Form 1040-NR). Caution: If multiple forms and schedules are attached, determine whether they are duplicates or multiples by comparing amounts with entries on Form 1040. If duplicates are attached, perfect the forms or schedules that support the Form 1040 and "X" all duplicates. Income earned during the Form 1040-NR period may not be excluded with Form 2555 or Form 2555-EZ (TY18 and prior). "X" Form 2555 or Form 2555-EZ (TY18 and prior), and if the foreign earned income exclusion is claimed on Schedule 1, "X" Schedule 1, line 9. If treaty income is reported on Form 1040-NR or Form 1040-NR-EZ: If the treaty is valid, see IRM 3.21.3.84.8.6. If the treaty is invalid, ensure the income is reported on the appropriate line of Form 1040-NR. "X" Form 1040. Ensure that Form 1040-NR or converted Form 1040-NR-EZ is the top document in the return package. Form 1040-NR or Form 1040-NR-EZ Dual-Status returns will be rebatched following local procedures.

# Prior Year Returns

3.21.3.86 (01-01-2015) Prior Year Returns The instructions provided in this subsection of the manual are for editing prior year tax returns.

# Prior Year Returns General Instructions

3.21.3.86.1 (10-30-2024) Prior Year Returns General Instructions Prior year returns are: Calendar-year returns filed for tax periods ending on or before 2412, and Fiscal-year returns filed for tax periods 2511 and earlier. All of the prior year editing procedures are based on the TAX YEAR of the return. Unlike the tax period which is based on the end of the return's tax period, the tax year (TY) is determined by the beginning of the return's tax period. For calendar-year returns, the tax period is the same as the tax year. Example: A return filed for January 1 through December 31, 2024, has a tax year of "TY24" and a tax period of "2412" . For a fiscal-year return, the tax year is always earlier than the tax period. Example: A return filed for June 1, 2022 through May 31, 2405, has a tax year of "TY23" and a tax period of "2405" . Do not edit RPC "V" or SPC "Y" on prior year returns. Use the appropriate Correspondence action sheet to generate Letter 4087C, Letter 2894C, or Letter 2894SP when corresponding on prior year returns. Note: When corresponding on prior year returns, refer to original line numbers in correspondence. Exception: Use Form 9143 or Form 13557 when corresponding for missing signature(s) and other correspondence being sent back to the taxpayer.

# Statutory Protection Cases

3.21.3.86.2 (10-30-2024) Statutory Protection Cases The refund statute on Form 1040, Form 1040-A, Form 1040-EZ, Form 1040-PR, Form 1040-SS, Form 1040-NR, and Form 1040-NR-EZ returns expires three years after the return due date, or the date the return was filed (if after the due date), or two years after the date the tax was paid, whichever is later. The assessment statute generally expires three years after either the return received date or the due date, whichever is later. For purposes of Code & Edit, consider a prior year return to be a potential statute protection case when both of the following apply: The return due date was 33 months (two years and nine months) or more prior to the current date and The return has not been cleared by the Statute Function For TY22 refund returns, if the received date is April 16, 2026, or later and the postmark date is on or before April 15, 2026, edit the postmark date as the received date. Otherwise, leave the existing received date. Route a return to the Statute Function if the received date on the return is 33 or more prior to the current date, even if a Statute Function stamp is already present. Note: If the statute return has been returned with a new statute cleared stamp, process the return. If (4) doesn't apply on a statute return, edit RPC "K" and continue processing the return in EITHER of these situations: Return has been cleared by the Statute Function, or Note: Look for notations the return has been cleared such as "Cleared for Assessment" ," Cleared by Statute" , "No Statute Issue" , Delinquent Return Cleared by Statute, or similar statement. A Statute received date stamp alone, without one of these notations, does not indicate the return was cleared by the Statute Function. Return is received from RIVO/ITVA, whether or not it has been cleared by the Statute Function. When processing, if the return has been cleared by the Statute Function or the Letter 105C is attached, do not correspond for missing information.

# Prior Year Returns Editing Procedures

3.21.3.86.3 (10-29-2025) Prior Year Returns Editing Procedures Follow the instructions in both IRM 3.21.3 and IRM 3.11.3, Individual Income Tax Returns. Follow the current-year procedures when no specific prior-year instructions are given. Underline the preprinted tax year when the taxpayer has used the correct form for the tax period being reported. Edit the tax period to the right of the preprinted year in "YYMM" format when either of the following conditions apply: The taxpayer has used a form for a tax period other than the one being reported. The preprinted tax period is missing or illegible. For all tax years, renumber or convert all T-lines to agree with current year forms and schedules. Renumbering - Mark out the line number(s) on the prior year form/schedule and edit the current year T-line number(s). See Prior Year Job Aid, 2431-010 and Prior Year section of Job Aid 2513-701. Converting - Convert to a current year form or use a conversion sheet (Form 13899 for Form 1040-NR, Form 6114 for Form 1040, and Form 6114-A for Schedules 1-3) if marking out the line numbers would make transcription more difficult. Note: When using Form 13899, follow Form 6114 instructions in IRM 3.11.3, Individual Income Tax Returns. Note: Use current year forms and schedules when renumbering is not practical. Line references in these prior year instructions are to the current year line numbers, unless otherwise specified. Take one of the following actions when a T-Line with no current year equivalent contains a significant entry: "X" the amount when present on a current year T-line. Do not renumber the line as a T-line when renumbering a prior year form/schedule. Do not edit the amount to the Form 13899, Form 6114, Form 6114-A, or blank current year form/schedule when converting. Compute and edit amounts following line-by-line instructions only for TY16 and later. For TY15 and prior, do not correspond or manually compute T-Lines. Exception: Correspond for signature regardless of tax year. When editing from prior year Forms W-2 and Forms 1042-S, ensure correct amounts are transferred by referring to box titles in addition to box numbers. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 1040, Pages 1 and 2

3.21.3.86.4 (01-01-2023) Form 1040, Pages 1 and 2 The instructions in this subsection are for prior year editing of Form 1040, pages 1 and 2.

# Form 1040, Line 30 - Recovery Rebate Credit

3.21.3.86.4.1 (10-30-2024) Form 1040, Line 30 - Recovery Rebate Credit The Recovery Rebate Credit is valid for TY21 and TY20 only. If a nonnumeric entry is present on line 30, X the line. Exception: Taxpayers may not claim the Recovery Rebate Credit (RRC) on Dual-Status returns. If an amount for RRC is present on a Dual-Status return, "X" where found.

# Form 1040, Line 31 - Other Payments and Refundable Credits (Schedule 3, Line 15) (not transcribed)

3.21.3.86.4.2 (01-01-2024) Form 1040, Line 31 - Other Payments and Refundable Credits (Schedule 3, Line 15) (not transcribed) For TY22 only, if there is an amount on line 31, and a notation of "IRA22DPE" , "CHIPS22DPE" , "IRA22TRE" , or something similar is present here or elsewhere on the return, indicating a Deemed Payment Election (DPE) is being claimed, follow these instructions: If "IRA22DPE" , "CHIPS22DPE" , or something similar is notated, edit CCC "3" and RPC "5" . If "IRA22TRE" or something similar is notated, edit RPC "5" . Fully code the return, and then pull to be rebatched under the original program using "DPE" as the Batch ID. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 1040, Schedule 1

3.21.3.86.5 (01-01-2021) Form 1040, Schedule 1 The instructions in this subsection are for prior year editing of Form 1040, Schedule 1.

# Schedule 1, Line 9 - Other Income

3.21.3.86.5.1 (01-01-2021) Schedule 1, Line 9 - Other Income Most treaties have exemptions for specific categories of income for which resident aliens may claim treaty benefits. The exceptions generally are not available to resident aliens who are green card holders. For Tax Year 2006 and prior, China, former Soviet Republics still governed by the Soviet Treaty, Pakistan, and Greece are the only countries that permit green card holders to claim treaty exemptions on Form 1040. If the treaty claimed is: Valid - allow by editing the exempt income to Schedule 1, line 9 as a negative amount, and verify that the income is reported on the appropriate income line. Invalid (any country other than those listed above for TY06 and prior) - disallow by "X" -ing the exempt income where found, and ensure that the income is reported on the appropriate line. Use Exhibit 3.21.3-12 to verify if the treaty is valid when the tax year is listed in Exhibit 3.21.3-12. If the tax year is not included in Exhibit 3.21.3-12, use Exhibit 3.21.3-10 to verify if the treaty is valid.

# Form 1040, Schedule 2 - Additional Taxes

3.21.3.86.6 (01-01-2024) Form 1040, Schedule 2 - Additional Taxes The instructions in this subsection are for prior year editing of Form 1040, Schedule 2.

# Schedule 2, Line 19 - Additional Tax from Schedule 8812 (TY21 Only)

3.21.3.86.6.1 (01-01-2024) Schedule 2, Line 19 - Additional Tax from Schedule 8812 (TY21 Only) For TY21 only, if an amount is present on line 19, Schedule 8812 must be attached. If missing, correspond for Schedule 8812.

# Form 1040, Schedule 3

3.21.3.86.7 (01-01-2024) Form 1040, Schedule 3 The instructions in this subsection are for prior year editing of Form 1040, Schedule 3.

# Schedule 3, Line 5a - Residential Energy Credits (Form 5695, Line 15) (TY23 and Prior)

3.21.3.86.7.1 (10-30-2024) Schedule 3, Line 5a - Residential Energy Credits (Form 5695, Line 15) (TY23 and Prior) For TY22 and prior, if an amount is claimed on line 5a, Form 5695 must be attached. If missing and the amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond for Form 5695. Note: If an amount is claimed on line 5a and only Form 5695, page 2 is attached, delete the amount on line 5a.

# Schedule 3, Line 6f - Qualified Plug-In Motor Vehicle Credit (TY22 and Prior)

3.21.3.86.7.2 (01-01-2024) Schedule 3, Line 6f - Qualified Plug-In Motor Vehicle Credit (TY22 and Prior) For TY22 and prior, if there is an amount on line 6f, Form 8936 must be attached. If missing, correspond for Form 8936.

# Schedule 3, Line 13a - Deemed Payment Election (DPE)

3.21.3.86.7.3 (01-01-2024) Schedule 3, Line 13a - Deemed Payment Election (DPE) For TY22 only, see IRM 3.21.3.86.4.2.

# Schedule 3, Line 13b (12b for TY20) (SFL) - Credit for Qualified Sick and Family Leave Wages (Schedule H)

3.21.3.86.7.4 (10-29-2025) Schedule 3, Line 13b (12b for TY20) (SFL) - Credit for Qualified Sick and Family Leave Wages (Schedule H) For TY22, when an amount is claimed on line 13b (TY22), Schedule H must be attached. If not attached, correspond for missing Schedule H. Note: Correspondence is required even though TY22, line 13b is being deleted. For TY21 - TY20, when an amount is claimed on line 13b (TY21) or line 12b (TY20) (SFL), Schedule H and Form 7202 must be attached. If not attached, correspond for missing form(s). If corresponding for Schedule H and Form 7202 for entry on line SFL and SL2, correspond for only one missing Schedule H and one Form 7202. Use the first entry amount and line number on the schedule.

# Schedule 3, Line 13g - Credit for Child and Dependent Care Expenses (Form 2441) (TY21 Only)

3.21.3.86.7.5 (01-01-2024) Schedule 3, Line 13g - Credit for Child and Dependent Care Expenses (Form 2441) (TY21 Only) For TY21 only, when an amount is present, Form 2441 with an entry on line 10 must be attached. If missing, correspond for Form 2441.

# Schedule 3, Line 13h (SL2) - Qualified Sick and Family Leave Credits (Schedule H and Form 7202

3.21.3.86.7.6 (10-29-2025) Schedule 3, Line 13h (SL2) - Qualified Sick and Family Leave Credits (Schedule H and Form 7202 For TY21 - TY22, when an amount is claimed on original line 13h, Schedule H and Form 7202 must be attached. If not attached, correspond for missing form(s). If corresponding for Schedule H and Form 7202 for entry on line SFL and SL2, correspond for only one missing Schedule H and one Form 7202. Use the first entry amount and line number of the schedule.

# Schedule C-EZ (Sequence 09, 10, 11) - Net Profit From Business

3.21.3.86.8 (03-12-2021) Schedule C-EZ (Sequence 09, 10, 11) - Net Profit From Business Process following Schedule C instructions. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 1116 (Sequence 19) - Foreign Tax Credit

3.21.3.86.9 (01-01-2020) Form 1116 (Sequence 19) - Foreign Tax Credit Taxpayers earning income in the following countries are not allowed to take credit for foreign taxes paid to that country with respect to income earned between the start and end dates according to the table below: Country Name Start Date End Date Afghanistan January 1, 1987 August 4, 1994 Albania January 1, 1987 March 15, 1991 Angola January 1, 1987 June 18, 1993 Cambodia January 1, 1987 August 4, 1994 Cuba January 1, 1987 December 21, 2015 Iraq February 1, 1991 June 27, 2004 Libya January 1, 1987 December 9, 2004 South Africa January 1, 1988 July 10, 1991 Vietnam January 1, 1987 July 21, 1995 People's Democratic Republic of Yemen January 1, 1987 May 22, 1990

# Form 3800 (Sequence 22) - General Business Credit

3.21.3.86.10 (10-29-2025) Form 3800 (Sequence 22) - General Business Credit See IRM 3.11.3.31.2, Prior Year Form 3800 for complete instructions.

# Form 2555 (Sequence 34) - Foreign Earned Income Exclusion

3.21.3.86.11 (10-29-2025) Form 2555 (Sequence 34) - Foreign Earned Income Exclusion U.S. citizens and resident aliens living abroad are taxed on their worldwide income (income from all sources and includes foreign and U.S. income) and may qualify to exclude some or all of their foreign earnings. In addition, they can exclude or deduct certain foreign housing amounts. The maximum foreign earned income exclusions for prior years are: $126,500 for 2024 $120,000 for 2023 $112,000 for 2022 $108,700 for 2021 $107,600 for 2020 $105,900 for 2019 $103,900 for 2018 $102,100 for 2017 $101,300 for 2016 $100,800 for 2015 Waiver of minimum time requirements - the minimum time requirements for the bona fide residence test or the physical presence test can be waived if the taxpayer must leave a foreign country because of war, civil unrest, or similar adverse conditions in that country. Note: Edit dates to cover a full calendar year using dates provided by the taxpayer, if available. Otherwise, use the tax year of the return to determine the applicable dates. The following are the only countries for which a waiver may be claimed for 2024: Country Date of Departure on or after Ukraine January 13, 2024 Iraq January 18, 2024 Haiti January 23, 2024 Bangladesh August 5, 2024 The following are the only countries for which a waiver may be claimed for 2023: Country Date of Departure on or after Ukraine January 18, 2023 Belarus January 26, 2023 Sudan April 20, 2023 Haiti July 27, 2023 Niger August 2, 2023 Iraq October 20, 2023 The following are the only countries for which a waiver may be claimed for 2022: Country Date of Departure on or after Ethiopia January 3, 2022 Iraq January 14, 2022 Ukraine February 12, 2022 Belarus February 28, 2022 China April 11, 2022 Mali July 29, 2022 The following are the only countries for which a waiver may be claimed for 2021: Country Date of Departure on or after Afghanistan April 27, 2021 Burma March 30, 2021 Chad April 17, 2021 Ethiopia November 5, 2021 Iraq January 19, 2021 The following are the only countries for which a waiver may be claimed for 2020: Country Date of Departure on or after People's Republic of China, excluding the Special Administrative Regions of Hong Kong and Macau (or Macao) (China) December 1, 2019 and on or before July 15, 2020 All foreign countries February 1, 2020 and on or before July 15, 2020 Iraq March 25, 2020 Note: If the dates are either missing or don't qualify for either the bona fide residence or physical presence test, and there is a notation of "Revenue Procedure 2020-27" , "adverse conditions" , or "could not meet 330-day requirement due to emergency" (e.g., medical condition or travel restrictions), then allow the foreign earned income exclusion, and edit the physical presence dates provided. If dates are missing, edit dates for the calendar year (2001 and 2012). The following are the only countries for which a waiver may be claimed for 2019: Country Date of Departure on or after Democratic Republic of the Congo January 13, 2019 Haiti February 14, 2019 Iraq May 14, 2019 Sudan April 11, 2019 Venezuela January 24, 2019 People's Republic of China, excluding the Special Administrative Regions of Hong Kong and Macau (or Macao) (China) December 1, 2019 and on or before July 15, 2020 All foreign countries February 1, 2020 and on or before July 15, 2020 Note: If the dates are either missing or don't qualify for either the bona fide residence or physical presence test, and there is a notation of "Revenue Procedure 2020-27" , "adverse conditions" , or "could not meet 330-day requirement due to emergency" (e.g., medical condition or travel restrictions), then allow the foreign earned income exclusion, and edit the physical presence dates provided. If dates are missing, edit dates for the calendar year (1901 and 1912). The following are the only countries for which a waiver may be claimed for 2018: Country Date of Departure on or after Democratic Republic of the Congo December 14, 2018 Cuba January 4, 2018 Iraq September 28, 2018 Nicaragua July 6, 2018 The following are the only countries for which a waiver may be claimed for 2016: Country Date of Departure on or after South Sudan July 10, 2016 Turkey October 29, 2016 The following is the only country for which a waiver may be claimed for 2015: Country Date of Departure on or after Burundi May 14, 2015 The following are the only countries for which a waiver may be claimed for 2014: Country Date of Departure on or after Libya July 26, 2014 Yemen September 24, 2014 Line 45 - The taxpayer may include an amount for a prior year exclusion by making a notation on the dotted portion of Form 2555, line 45. If this notated amount is included in the total on line 45, accept the taxpayer's figure. If this amount is the only Form 2555 exclusion claimed, accept the taxpayer's figures. DO NOT correspond for dates. DO NOT edit POD or dates.

# Form 2555-EZ

3.21.3.86.12 (10-30-2024) Form 2555-EZ Generally, Form 2555-EZ is available for TY18 and prior. If a Form 2555-EZ is filed for TY19 or later, convert to Form 2555. For TY 1991 and prior, Form 2555-EZ is not allowed. If a Form 2555-EZ is filed for TY1991 or earlier, also convert it to Form 2555.

# General Editing for Form 2555-EZ

3.21.3.86.12.1 (11-12-2021) General Editing for Form 2555-EZ U.S. citizens or resident aliens living abroad are taxed on their worldwide income( income from all sources and includes foreign and U.S. income) and may qualify to exclude their foreign earnings. In addition, they can exclude or deduct certain foreign housing amounts. The maximum foreign earned income exclusions for TY18 and prior years are: $103,900 for 2018 $102,100 for 2017 $101,300 for 2016 $100,800 for 2015 $99,200 for 2014 $97,600 for 2013 Convert to Form 2555 if the taxpayer reports any of the following on Form 2555-EZ: Foreign earned income is over the maximum exclusion amount for the tax year shown in (1) above. See Figure 3.21.3-42. Note: Convert to Form 2555 when combined foreign earned income from Form 2555-EZ for any one taxpayer is over the maximum exclusion amount for the tax year. Reminder: The limitation is based on the amount of income, not the exclusion. Self-employment income (for example: Schedule C, Schedule E Part II or Schedule F). Form 2106, Employee Business Expenses Form 3903, Moving Expenses Housing exclusion or housing deduction (including for a prior year) Other than a calendar year, 12-month tax period Figure 3.21.3-42 This figure represents two graphics.The first graphic represents page 1 of a 2018 Form 2555-EZ:The name is Eliza Duck.The TIN is 000-00-3579.Taxpayer checked the Yes box for the Part I, line 1a question, Were you a bona fide resident of a foreign country or countries for a period that includes an entire tax year?Taxpayer has provided bona fide residence dates on Part I, line 1b: begin date of 1/15/2017 and end date of 3/31/2019.Part II, line 4 shows the foreign address of 6237 Glacier Ave, Toronto, ON, M5A 1W3, Canada.A text box states 2555-EZ foreign earned income over the maximum exclusion amount. Convert to 2555.-EZ has been circled out in red from the form number, and CA has been edited in block letters in the top-center margin to indicate the POD as Canada.Line 1b has been deleted with a red diagonal slash, and 10 has been edited to the left of the deleted line 1b.1701 has been edited in red below the provided begin date of 1/15/2017, and 1903 has been edited in red below the provided end date of 3/31/2019.The second graphic represents page 2 of a 2018 Form 2555-EZ:Taxpayer has entered 108000 on both lines 17 and 18.A vertical red line has deleted line numbers 16, 17, and 18.19 is edited in red to the left of the deleted line number 17.42/45 is edited in red to the left of the deleted line number 18. Please click here for the text description of the image.

# Form 2555-EZ - Page 1

3.21.3.86.12.2 (01-01-2015) Form 2555-EZ - Page 1 POD Codes (top-center of Form 2555-EZ): see IRM 3.21.3.42.4 and Exhibit 3.21.3-7. Line 1b and line 2b - Bona Fide Residence Test and Physical Presence Test: see IRM 3.21.3.42.5. If page 1 is missing, correspond.

# Form 2555-EZ - Page 2

3.21.3.86.12.3 (04-24-2020) Form 2555-EZ - Page 2 If the taxpayer is claiming an exclusion from Form 2555-EZ, then page 2 must be completed. If missing or incomplete, correspond. Note: If the taxpayer enters zero on line 18, do not correspond; continue processing. Note: Ensure that the taxable amount is on Form 1040, line 1a, and the exclusion is on Schedule 1, line 9. Days in U.S. on Business: Add the number of days listed in column (c) titled "Number of days in U.S. on business" (Part III, line 12c). Note: Do not include days in the U.S. due to illness, personal reasons, or vacation in the total number of days in the U.S. on business. Edit the sum in the margin to the right of line 12d just above Part IV. Line 17 - Total Foreign Earned Income - Ensure income is included on Form 1040, line 1a. Line 18 - Foreign Earned Income Exclusion - If blank, edit the smaller of line 16 or line 17. Verify that the line 18 amount (or combined amounts if the primary and secondary both submitted a Form 2555) has been reported on Schedule 1, line 9. If Schedule 1, line 9 is blank, edit the line 18 amount to Schedule 1, line 9 as a negative entry (bracket the amount). Note: Prior Year Exclusion is not valid on Form 2555-EZ. Convert to Form 2555 by editing line 45 on page 3 only. No other editing is required. Do not correspond for dates .

# Form 5405 (Sequence 58, 59) - Repayment of the First-Time Homebuyer Credit (TY24 and prior)

3.21.3.86.13 (10-29-2025) Form 5405 (Sequence 58, 59) - Repayment of the First-Time Homebuyer Credit (TY24 and prior) The following lines on Form 5405 (edit Sequence Code 58 for the primary taxpayer and 59 for the secondary taxpayer, even if only one form is filed) are T-Lines and T-Compute Lines: T-Lines T-Compute Lines TIN There are no T-Compute Lines Line 1 Line 3 Checkboxes Lines 4 and 5 Lines 7 and 8 For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 8910 - Alternative Motor Vehicle Credit

3.21.3.86.14 (10-29-2025) Form 8910 - Alternative Motor Vehicle Credit Form 8910 is historical and cannot be used for TY23 and later. For TY22 - TY25: If line 1 of Form 8910 shows a claim for a bicycle, Moped, or motorcycle, circle the entry on Form 8910. Edit Unallowable Code "79" when multiple instances of the same Vehicle Identification Number (VIN) appears on attached Form 8910 and/or Form 8936. For TY10 and prior, "X" Form 8910.

# Form 1040-PR and Form 1040-SS - General Instructions (TY22 and Prior)

3.21.3.86.15 (10-29-2025) Form 1040-PR and Form 1040-SS - General Instructions (TY22 and Prior) The instructions in this subsection apply to TY22 and priorForm 1040-SS, and TY22 and prior Form 1040-PR. Line references in these instructions are to the TY24 Form 1040-SS and TY22 Form 1040-PR line numbers, see IRM 3.21.3.81 for TY23 and later instructions. For TY22 and prior, the Form 1040-SS is written in English, and the Form 1040-PR is written in Spanish. Besides the language, both are identical forms, and taxpayers who reside in the U.S. territories of American Samoa (AS), the Commonwealth of the Northern Mariana Islands (CNMI), Guam (GU), Puerto Rico (PR), and the U.S. Virgin Islands (USVI) can file either Form 1040-SS or Form 1040-PR. Throughout this subsection, references to Form 1040-SS or Form 1040-PR are understood to apply to both Form 1040-SS and Form 1040-PR. Form 1040-SS or Form 1040-PR is filed by residents of U.S. territories and is used to: Report net earnings from self-employment and pay self-employment taxes, Pay any household employment taxes, Claim excess Social Security tax withheld, Pay any employee Social Security and Medicare tax on unreported tips or uncollected employee Social Security and Medicare tax on tips or group-term insurance, For TY22, claim the additional child tax credit (only if qualified bona fide residents of Puerto Rico with at least 1 qualifying child), For TY21, claim the refundable child tax credit (only if qualified bona fide residents of Puerto Rico with at least 1 qualifying child), For TY20 and prior, claim the additional child tax credit (only if qualified bona fide residents of Puerto Rico with at least 3 qualifying children), and For TY21 and prior, claim the health coverage tax credit (only if qualified bona fide residents of Puerto Rico). When correspondence is required, use: Form 13557 for Form 1040-PR and Form 1040-SS for missing signatures or other correspondence when the return is being sent back to the taxpayer. Form 13975 for Form 1040-PR and Form 1040-SS for correspondence when the return is not being sent back to the taxpayer. If a taxpayer, who lives or lived in Puerto Rico (PR), files Form 1040-PR or Form 1040-SS to report self-employment and also files Form 1040 to report worldwide income (income from all sources and include foreign and U.S. income), see IRM 3.21.3.80.3. If the taxpayer files Form 1040-PR or Form 1040-SS along with a U.S. Form W-2 showing U.S. income, correspond and request that they file Form 1040 to report their income. Return the Form 1040-PR or Form 1040-SS to the taxpayer using Form 13557, paragraph 14. For the items listed below, refer to the general instructions: Received Dates, see IRM 3.21.3.8 Tax Period, see IRM 3.21.3.11 Taxpayer Identification Information, see IRM 3.21.3.12.2 Caption Information, see IRM 3.21.3.12.1 Address, see IRM 3.21.3.12.3.2 through IRM 3.21.3.12.6 P-TIN/S-TIN, see IRM 3.21.3.12.2.1 and IRM 3.21.3.12.2.2 Name Line and Additional Information Line, see IRM 3.21.3.12.3 through IRM 3.21.3.12.3.3 Route all Form 1040-PR and Form 1040-SS to the work leader when there is an indication it is a copy/copia, amended/enmendada, corrected/corregida, sent/enviado, accepted/aceptado, or electronically filed/radicado electronicamente, unless "no TC 150" is annotated. Route all Form 1040-PR and Form 1040-SS to the work leader for TC 150 research before corresponding, when only page 1 is present and the return was received with remittance. For TY01 and prior, dummy a current year form. Take the following actions: See Figure 3.21.3-43 Edit the tax period, caption information, FSC "1" and the received date on the dummied return, Edit RPC "K" when applicable. Edit SE tax amount from the original return to lines 3, 7 and 16 of the dummied return. Edit Sequence Code "17" on the original return. Renumber line 1 as line 1a on the original return. Attach the original return behind the dummied return. Figure 3.21.3-43 This figure represents two graphics.The first graphic represents a prior year Form 1040-PR for 1999, which has a Delinquent Original Cleared stamp in the left upper margin with a date of 04-30-26. The 1040-PR contains the taxpayer's name of Magda Cupeyes, the TIN 000-00-9095, and the address is 2489 Avenida Unibon URB Veguitas in Rio Grande, PR, ZIP code 00745. Lines 1 and 3 show 6200, lines 4c and 6 show 5726, line 10 shows 710, line 11 shows 166, and lines 12 and 19 show 876. There is a received date of 04152026 stamped in the body of the form. A text box is on the 1999 1040-PR that states, All prior year forms must be converted to current year forms. There is a 17 edited in red in the right margin next to the year on the 1999 1040-PR. Line 1 has been changed to 1a.The second graphic represents the converted prior year 1999 1040-SS (sp). The tax year of 2025 has been circled in red, and the year 9912 is edited above the circled year. The name of Magda Cupeyes, her TIN of 000-00-9095, her address of 2489 Avenida Unibon URB Veguitas (URB Veguitas underlined in red) in Rio Grande, PR along with the ZIP code of 00745 has been transferred from the prior year to the current form. The received date of 041526 has been edited in red on the dotted area to the left of line 5. The amount of 876 has been edited in red to lines 3, 7, and 16 from line 12 of the prior form. Please click here for the text description of the image.

# Government Retiree Credit

3.21.3.86.15.1 (02-06-2014) Government Retiree Credit "X" any amount claimed for a government retiree credit.

# Editing Part I, Lines 1 - 16 (Total Tax and Credits)

3.21.3.86.15.2 (01-01-2024) Editing Part I, Lines 1 - 16 (Total Tax and Credits) The taxpayer uses this section to report Total Tax and Credits.

# Line 1 - Filing Status Code (FSC)

3.21.3.86.15.2.1 (01-01-2024) Line 1 - Filing Status Code (FSC) The Filing Status Code (FSC) must always be edited. Edit the FSC in the left margin beside the filing status (FS) area. For TY22 and TY21, use the following table to edit the correct FSC when one filing status box is marked: FS Box Marked And Then Single Edit FSC "1" . Married filing jointly Two signatures are present Edit FSC "2" . Married filing jointly One signature is present Correspond for the spouse's missing signature. Married filing separately (MFS) Spouse's name is not included in the caption area Edit FSC "3" . Married filing separately (MFS) Spouse's name is included in the caption area, but only one signature is present Edit FSC "3" , and circle the spouse's name. Married filing separately (MFS) Spouse's name is not included in the caption area, but two signatures are present Edit FSC "3" . Married filing separately (MFS) Spouse's name is included in the caption area, and two signatures are present Edit FSC "2" . Head of household At least one qualifying child is present Edit FSC "4" . Head of household No qualifying children are present Edit FSC "1" . Qualifying surviving spouse No spousal date of death, or date of death was within the two years before the tax year of the return Edit FSC "5" . Qualifying surviving spouse Both of the following conditions are present: Spousal date of death was more than two years before the tax year of the return, AND No qualifying children are present Edit FSC "1" . Qualifying surviving spouse Both of the following conditions are present: Spousal date of death was more than two years before the tax year of the return, AND At least one qualifying child is present Edit FSC "4" . Qualifying surviving spouse Spousal date of death was either within the tax year of the return or after the tax year of the return Edit FSC "2" . For TY22 and TY21, use the following table to edit the correct FSC when no filing status box is marked: If Then Two names are in the caption and two signatures are present Edit FSC "2" . Both of the following conditions are present: One name is in the caption and one signature is present, AND An S-TIN or spouse's name is entered on the line under the filing status boxes, or an S-TIN is present in the caption area Edit FSC "3" . If any other condition exists Edit FSC "1" . For TY22 and TY21, when more than one filing status box is marked (unless both filing status Single and filing status Head of household are marked), edit the FSC for the marked filing status box that has the largest corresponding FSC number. For TY22 and TY21, if both filing status Single and filing status Head of household are marked, use the following table to edit the correct FSC: If Then At least one qualifying child is present Edit FSC "4" . No qualifying children are present Edit FSC "1" . For TY20 and prior, use the following table to edit the correct FSC when one filing status box is marked: FS Box Marked And Then Single Edit FSC "1" . Married filing jointly Two signatures are present Edit FSC "2" . Married filing jointly One signature is present Correspond for the spouse's missing signature. Married filing separately Spouse's name is not included in the caption area Edit FSC "3" . Married filing separately Spouse's name is included in the caption area, but only one signature is present Edit FSC "3" , and circle the spouse's name. Married filing separately Spouse's name is not included in the caption area, but two signatures are present Edit FSC "3" . Married filing separately Spouse's name is included in the caption area, and two signatures are present Edit FSC "2" . For TY20 and prior, use the following table to edit the correct FSC when no filing status box is marked or more than one filing status box is marked: If Then Two names are in the caption and two signatures are present Edit FSC "2" . Both of the following conditions are present: One name is in the caption and one signature is present, AND An S-TIN or spouse's name is entered on the "Married filing separately" line, or an S-TIN is present in the caption area Edit FSC "3" . Any other condition exists Edit FSC "1" .

# Line 2 - Qualifying Children Information

3.21.3.86.15.2.2 (10-29-2025) Line 2 - Qualifying Children Information For Form 1040-PR and Form 1040-SS, up to four qualifying children name controls and Social Security Numbers can be transcribed. A qualifying child may include a son, daughter, stepchild, adopted child, grandchild, niece, nephew, foster child, brother, sister, stepbrother, stepsister, half-brother, or half-sister. For additional information on qualifying children, see IRM 3.11.3.13, Dependents. "X" all claimed dependents that are not qualifying children. Note: Treat a relationship of "g child" as a godchild, and "X" the dependent. Also, "X" a dependent with a blank relationship. For TY22 and TY21, if the taxpayer has not claimed at least one qualifying child or the taxpayer's address is not in Puerto Rico, take the following actions: "X" all dependents, "X" the amount on line 9 (Additional Child Tax Credit/Refundable Child Tax Credit), and "X" Part II even if blank. For TY20 and prior, if the taxpayer has not claimed at least 3 qualifying children or the taxpayer's address is not in Puerto Rico, take the following actions: "X" all dependents, "X" the amount on line 9 (Additional Child Tax Credit), and "X" Part II even if blank.

# Child's Social Security Number

3.21.3.86.15.2.2.1 (01-01-2024) Child's Social Security Number Every qualifying child must have a Social Security Number. Search attachments for any qualifying child's Social Security Number not listed on line 2(b). If the missing Social Security Number is found and: If four Social Security Numbers are Then Already listed "X" the name of the dependent(s) without a listed Social Security Number Not already listed Edit up to four Social Security Numbers to line 2(b). If the missing Social Security Number is not found on the return or attachments, take the following actions: If the taxpayer And Then Notes "Died" (child born and died during the tax period) Birth or death certificate or copies of hospital medical record(s) are not attached Correspond for the missing birth certificate. Provides no Social Security Number Fewer than four Social Security Numbers are present for other dependents "X" the name(s) of the qualifying child(ren) on line 2(a) Provides no Social Security Number At least four Social Security Numbers are present for other dependents Take no action When corresponding for other missing return items, correspond, for missing Social Security Numbers of all qualifying children. Exception: Do not correspond when a dependent Social Security Number is missing, and there is an indication that the dependent was born and died during the tax year.

# Qualifying Child's Name Control

3.21.3.86.15.2.2.2 (01-01-2024) Qualifying Child's Name Control The name control(s) must be present for the first four qualifying children with Social Security Numbers listed on line 2. If missing, edit the name control(s) to the qualifying child's name area. Determine the missing name control(s) in the following priority: From supporting attachments From the primary taxpayer's name control

# Line 2c - Child Tax Credit Indicator

3.21.3.86.15.2.2.3 (01-01-2024) Line 2c - Child Tax Credit Indicator Edit a checkmark to the right of line 2(c) in the margin for every qualifying child with a name control and complete Social Security Number. Caution: Do not edit a checkmark if the qualifying child was "X" -ed (disallowed).

# Line 3 - Self-Employment Tax

3.21.3.86.15.2.3 (10-29-2025) Line 3 - Self-Employment Tax If an amount is present, Part V, Schedule SE, or Schedule SE, Section B (TY19 and prior) must be completed. If an amount is present and Part V, Schedule SE, or Schedule SE, Section B (TY19 and prior) is missing or blank, dummy Part V or Schedule SE from Part III, Part IV, Schedule C, Schedule F, or Schedule SE, Section A (TY19 and prior), if possible. If an amount is present and Part V, Schedule SE, or Schedule SE, Section B (TY19 and prior) is missing or blank and cannot be dummied, correspond for Part V. Exception: If the taxpayer used this line to report unreported tips from Form 4137 or Form 8919, do not correspond. Delete the amount from line 3, and edit the amount to be included in line 6. If line 3 is blank and Part V or Schedule SE has entries, edit the amount from Part V, line 12 or Schedule SE, line 12 to Part I, line 3. Caution: The taxpayers may include separate Parts V or Schedules SE for the primary and secondary taxpayers. If the return includes two Parts V or two Schedules SE, combine the line 12 amounts and edit the total to Part I, line 3.

# Line 4 - Household Employment Taxes (Schedule H or Schedule H-PR/Schedule H (sp))

3.21.3.86.15.2.4 (10-30-2024) Line 4 - Household Employment Taxes (Schedule H or Schedule H-PR/Schedule H (sp)) If an amount is present on line 4 and Schedule H, Schedule H-PR, or Schedule H (sp) is not attached, correspond for Schedule H.

# Line 5 (5a for TY21) - Additional Medicare Tax (Form 8959)

3.21.3.86.15.2.5 (01-01-2024) Line 5 (5a for TY21) - Additional Medicare Tax (Form 8959) If an amount is present on line 5 (5a for TY21), Form 8959 must be attached. If missing, correspond for Form 8959.

# Line 5b - Repayment of Advance Child Tax Credit (TY21 Only)

3.21.3.86.15.2.6 (01-01-2024) Line 5b - Repayment of Advance Child Tax Credit (TY21 Only) For TY21 only, if an amount is present on line 5b, Schedule 8812 must be attached. If missing, correspond for Schedule 8812.

# Line 6 - Total Tax

3.21.3.86.15.2.7 (10-30-2024) Line 6 - Total Tax Edit line 6 in dollars and cents when adjusting or computing and editing an amount. Compute and edit line 6 when it is blank, dash, zero, or illegible and there are entries leading to a total. Reminder: Edit lines 6 through 16 in dollars and cents when adjusting or computing and editing amounts. If the taxpayer notates, "Tax on Tips," on the line 6 dotted portion, Form 4137 must be attached to support the entry. If missing, correspond for Form 4137. If the taxpayer notates Uncollected Tax, on line 6 dotted portion, Form 8919 must be attached to support the entry. If missing, correspond Form 8919.

# Line 7 - Estimated Tax Payments

3.21.3.86.15.2.8 (01-01-2024) Line 7 - Estimated Tax Payments "X" any amount that can be determined to be other than ES tax payments.

# Line 8 - Excess Social Security Tax Withheld

3.21.3.86.15.2.9 (01-01-2024) Line 8 - Excess Social Security Tax Withheld Take no action when the amount on line 8 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Correspond when an amount for excess SST is present on line 8 and no Form W-2AS, Form W-2CM, Form W-2GU, Form W-2VI, or Form 499R-2/W-2PR is attached. If line 8 has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form W-2AS, Form W-2CM, Form W-2GU, Form W-2VI, or Form 499R-2/W-2PR is attached, and any single Form W-2AS, Form W-2CM, Form W-2GU, Form W-2VI, or Form 499R-2/W-2PR shows Social Security withholding greater than the maximum Social Security tax withholding limit for the tax year filed (see IRM 3.11.3, Individual Income Tax Returns for prior year maximum SST withholding limits), "X" line 8. Otherwise, take the following steps to verify the line 8 entry using dollars and cents during the computation: Compute the taxpayer's Social Security tax withheld. If the result is less than the filed year's maximum SST withholding limit, "X" line 8. Caution: If married filing jointly, DO NOT ADD Form W-2AS, Form W-2CM, Form W-2GU, Form W-2VI, or Form 499R-2/W-2PR for primary and secondary taxpayers together. Subtract the filed year's maximum SST withholding limit from the Social Security tax withheld. The result is the excess Social Security tax withheld for that taxpayer. For FS 2, the excess SST amount for each taxpayer is computed separately, and the combined total is compared to the entry on line 8. If the computed amount differs from the line 8 amount by more than $5.00, "X" line 8, and edit the computed amount in dollars and cents.

# Line 9 - Additional/Refundable Child Tax Credit

3.21.3.86.15.2.10 (01-01-2024) Line 9 - Additional/Refundable Child Tax Credit "X" the line 9 amount if present and the address on the return is not in Puerto Rico. For TY22 and TY21, "X" the line 9 amount if present and the taxpayer has not claimed at least 1 qualifying child on Part I, line 2. For TY20 and prior, "X" the line 9 amount if present and the taxpayer has not claimed at least 3 qualifying children on Part I, line 2. If line 9 is blank, Part II, line 3 has an amount, and the taxpayer qualifies for the Additional Child Tax Credit or the Refundable Child Tax Credit, edit the Part II, line 3 amount to Part I, line 9. Note: Do not edit Part I, line 9 if Part II has been "X" -ed.

# Line 11a - Credit for Qualified Sick and Family Leave Wages From Schedule(s) H for Leave Taken Before April 1, 2021

3.21.3.86.15.2.11 (10-29-2025) Line 11a - Credit for Qualified Sick and Family Leave Wages From Schedule(s) H for Leave Taken Before April 1, 2021 For TY22 - TY21, if line 11a has an amount, then Schedule H must be attached. If missing, correspond for Schedule H.

# Line 11b - Credit for Qualified Sick and Family Leave Wages from Schedule(s) H for Leave Taken After March 31, 2021, and Before October 1, 2021

3.21.3.86.15.2.12 (10-29-2025) Line 11b - Credit for Qualified Sick and Family Leave Wages from Schedule(s) H for Leave Taken After March 31, 2021, and Before October 1, 2021 For TY22 - TY21, if line 11b has an amount, then Schedule H must be attached. If missing, correspond for Schedule H.

# Line 12 - Total Payments and Credits

3.21.3.86.15.2.13 (01-01-2024) Line 12 - Total Payments and Credits Edit line 12 in dollars and cents when adjusting, or computing and editing amounts. Compute and edit line 12, by adding lines 7 through 11b, when it's blank, dash, or zero, and there are entries leading to a total. Correspond for an explanation when there is an amount on line 12 and lines 7 through 11b are blank. Exception: Do not correspond if "Form 4868" or an explanation is noted on the dotted portion of line 12. Note: Do not correspond if Form 8959 is attached to support withholding. For TY20 only, taxpayers may claim Schedule H, line 8e as a write-in on the dotted portion of line 12. If the taxpayer includes an amount with the notation "SLFLC" to the left of line 12, Schedule H must be attached. If missing, correspond for Schedule H.

# Line 14a - Refund

3.21.3.86.15.2.14 (01-01-2024) Line 14a - Refund Compute and edit line 14a, by subtracting line 6 from line 12, when lines 13, 14a, 15, and 16 are all blank, line 12 is greater than line 6, and any of the following conditions are present: Line 6 has an entry, The taxpayer has computed or indicated no tax due on line 6, or It can be determined that line 6 would be zero if computed.

# Lines 14b, 14c and 14d - Direct Deposit Information

3.21.3.86.15.2.15 (01-01-2024) Lines 14b, 14c and 14d - Direct Deposit Information For complete instructions, see IRM 3.11.3, Individual Income Tax Returns. Note: When Form 1040 refers to lines 35b, 35c, and 35d, they are lines 14b, 14c, and 14d on Form 1040-PR and Form 1040-SS.

# Line 15 - ES Credit Elect

3.21.3.86.15.2.16 (01-01-2024) Line 15 - ES Credit Elect If lines 13, 14a, and 15 are the same and: ES Payments (line 7) are claimed, "X" the line 14a entry. ES Payments (line 7) are not claimed, "X" the line 15 entry. Note: Take no action when the overpayment (line 13) is divided between lines 14a and 15.

# Line 16 - Amount You Owe

3.21.3.86.15.2.17 (01-01-2024) Line 16 - Amount You Owe Compute and edit line 16, by subtracting line 12 from line 6, when lines 13, 14a, 15, and 16 are all blank, dash, or zero and line 6 is greater than line 12.

# Signature

3.21.3.86.15.2.18 (01-01-2024) Signature For complete instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Identity Protection Personal Identification Numbers (IP PIN)

3.21.3.86.15.2.19 (10-30-2024) Identity Protection Personal Identification Numbers (IP PIN) Identity Protection Personal Identification Number (IP PIN) is located in the "Sign Here" area of the return. If it is not 6 numeric digits, circle the IP PIN.

# Paid Preparer Data

3.21.3.86.15.2.20 (01-01-2024) Paid Preparer Data Edit the E-File Waiver Indicator to the right of the IP PIN boxes. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Editing Part II - Bona Fide Residents of Puerto Rico Claiming Additional/Refundable Child Tax Credit

3.21.3.86.15.3 (01-01-2024) Editing Part II - Bona Fide Residents of Puerto Rico Claiming Additional/Refundable Child Tax Credit For TY22 and TY21, "X" Part II if entries are present, and the address on the return is not in Puerto Rico or the taxpayer did not claim at least 1 qualifying child on Part I, line 2. Note: "X" Part II even if there is not an amount on Part I, line 9. For TY20 and prior, "X" Part II if entries are present, and the address on the return is not in Puerto Rico or the taxpayer did not claim at least 3 qualifying children on Part I, line 2. Note: "X" Part II even if there is not an amount on Part I, line 9.

# Line 1 - Modified Adjusted Gross Income/Income Derived From Sources Within Puerto Rico

3.21.3.86.15.3.1 (01-01-2024) Line 1 - Modified Adjusted Gross Income/Income Derived From Sources Within Puerto Rico If line 1 has an amount, renumber line 1 to line 3, and line through the preexisting line number 3. Exception: Do not renumber if Part II has been "X" -ed.

# Line 2 - Withheld Social Security, Medicare, and Additional Medicare Taxes

3.21.3.86.15.3.2 (01-01-2024) Line 2 - Withheld Social Security, Medicare, and Additional Medicare Taxes Reserved for TY21. The following instructions do not apply to TY21. If line 2 has an amount, renumber line 2 to line 13f. Exception: Do not renumber if Part II has been "X" -ed. For TY22, and TY20 and prior, if an amount is present and the taxpayer is claiming the Additional Child Tax Credit (ACTC) on Part I, line 9, supporting documentation (Forms 499R-2/W-2PR or leave and earnings statements) must be present. If missing, correspond for documentation. For TY22, and TY20 and prior, if line 2 is blank, ACTC is claimed on Part I, line 9, and Forms 499R-2/W-2PR or leave and earnings statement are present, edit line 2 using the Forms 499R-2/W-2PR or leave and earnings statements by adding all withheld Social Security, Medicare, and Additional Medicare taxes. For TY22, and TY20 and prior, if an amount was already present, verify the amount claimed by adding all withheld Social Security, Medicare, and Additional Medicare taxes from Forms 499R-2/W-2PR or leave and earnings statements: If the amount is correct, take no action. If the amount is not correct, "X" line 2 amount and edit the correct amount. Note: Allow for rounding by the taxpayer ($2.00 tolerance per Form 499R-2/W-2PR). Caution: Do not use dollars and cents during the computation.

# Editing Part III - Profit or Loss From Farming

3.21.3.86.15.4 (01-01-2024) Editing Part III - Profit or Loss From Farming No editing is required here.

# Editing Part IV - Profit or Loss From Business (Sole Proprietorship)

3.21.3.86.15.5 (01-01-2024) Editing Part IV - Profit or Loss From Business (Sole Proprietorship) If Part IV has an amount on line 1, 16, 23, or 24, do the following: If line 1 has an amount to the right of "gross receipts" that is different from an amount to the right of "balance," edit a "1" to the left of the amount for "gross receipts," and line through the line number 1 to the right of "balance." If line 16 has an amount, renumber line 16 to line 18, and line through the preexisting line numbers 18a and 18b. If line 23 has an amount, renumber line 23 to line 25, and line through the preexisting line number 25b. If line 24 has an amount, renumber line 24 to line 26, and line through the preexisting line number 26. Edit Sequence Code "09" in the upper-right margin of the first Page 3 with T-line entries in Part IV, edit Sequence Code "10" in the upper-right margin of the second Page 3 with T-line entries in Part IV, and edit Sequence Code "11" in the upper-right margin of the third Page 3 with T-line entries in Part IV. If there are more than three Parts IV with T-line entries, combine T-line amounts following instructions in IRM 3.11.3, Individual Income Tax Returns.

# Editing Part V - Self-Employment Tax

3.21.3.86.15.6 (10-30-2024) Editing Part V - Self-Employment Tax Only two Parts V or Schedules SE can be processed; one Part V or Schedule SE for each of: The primary taxpayer The secondary taxpayer For TY 19 and prior, when the taxpayer uses Schedule SE - Short version, Section A instead of Part V of Form 1040-PR or Form 1040-SS, convert to Schedule SE. Edit lines 2 and 3 from the Short Schedule SE to lines 2 and 3 of a current Schedule SE. Note: Schedule SE - Long version is an acceptable substitute for Part V. If the TIN is present but no dollar amounts are present, "X" Part V or Schedule SE. If only one processable Part V or Schedule SE is present, edit Sequence Code "17" , if not preprinted. If two processable Parts V or Schedules SE are present, one for the primary taxpayer and one for the secondary taxpayer, edit the Sequence Code as follows: Edit "17" , if not preprinted for the primary taxpayer. Edit "18" , for the secondary taxpayer. Combine multiple Parts V or Schedules SE when there is more than one Part V or Schedule SE for any one taxpayer. Take one of the following actions when one Part V or Schedule SE was submitted for two taxpayers: Allocate each taxpayer's Part V or Schedule SE amounts to two separate dummy Parts V or Schedules SE. "X" the Part V or Schedule SE with the combined taxpayer liability. Correspond for the correct allocation when it cannot be determined.

# Social Security Number

3.21.3.86.15.6.1 (10-29-2025) Social Security Number A TIN must be present if there are significant T-line entries in Part V or Schedule SE. If the TIN is missing, illegible, or incomplete, take the following actions: Edit the TIN from the caption on Form 1040-PR or Form 1040-SS. If the TIN is not present in the caption, search Form(s) W-2 and other attachments for the missing TIN. Note: Also, edit the missing TIN to the caption. If the TIN and name are both missing, edit the primary TIN. Note: If corresponding for missing signature on a joint return, also request the Social Security Number. If there are multiple TINs and one name on Part V or Schedule SE, circle out the TIN that does not match the name. Use the caption area to determine which TIN should be circled out. Correspond for a missing TIN if it cannot be perfected or obtained through research with the exception of rejected ITIN/Form W-7.

# Line 1a - Net Farm Profit or (Loss)

3.21.3.86.15.6.2 (01-01-2024) Line 1a - Net Farm Profit or (Loss) If blank, edit the amount from Part III, line 36 or Schedule F, line 34.

# Line 1b - Conservation Reserve Program Payments

3.21.3.86.15.6.3 (01-01-2024) Line 1b - Conservation Reserve Program Payments If blank, edit the amount from Part III, line 6 or Schedule F, line 4b.

# Line 2 - Net Nonfarm Profit or (Loss)

3.21.3.86.15.6.4 (01-01-2024) Line 2 - Net Nonfarm Profit or (Loss) If blank, edit the amount from Part IV, line 27 or Schedule C, line 31.

# Line 3 - Total Net Profit or (Loss)

3.21.3.86.15.6.5 (01-01-2024) Line 3 - Total Net Profit or (Loss) Compute and edit line 3 when it is blank, dash, or zero and there are entries leading to a total. "X" Page 4 or Schedule SE when the amount on line 3 is a negative amount or it is less than $434. Exception: Do not "X" Page 4 or Schedule SE when line 5a has an entry of $109 or more. If lines 1a, 1b, 2, and 3 are all blank and you are unable to determine line 3 from attachments, but line 4a has an entry, divide the amount on line 4a by .9235 and edit the result on line 3. If lines 1a, 1b, 2, 3, and 4a are all blank, but line 4b has an entry, edit line 4b to line 3.

# Right Margin of Line 4c - SE Quarters Covered

3.21.3.86.15.6.6 (01-01-2024) Right Margin of Line 4c - SE Quarters Covered When the return is for a short year or for a change of accounting period, edit the number of quarters covered in the margin to the right of line 4c, using the following guidelines: The quarters begin in January, April, July, and October. A fraction counts as a full quarter. Code SE quarters as follows - Code 1 for one quarter, - Code 2 for two quarters, - Code 3 for three quarters - DO NOT code for four quarters.

# Line 5a - Church Employee Self-Employment Wages

3.21.3.86.15.6.7 (01-01-2024) Line 5a - Church Employee Self-Employment Wages If line 5a has an entry of $109 or more, process regardless of the line 3 amount. If line 5a is blank and line 5b has an entry, divide the amount on line 5b by .9235, and edit the result on line 5a.

# Line 8d - Total Social Security Wages and Tips

3.21.3.86.15.6.8 (01-01-2024) Line 8d - Total Social Security Wages and Tips If the amount on line 8d is equal to or greater than the maximum Social Security wage limit for the tax year filed (see IRM 3.11.3, Individual Income Tax Returns for prior year maximum Social Security wage limits) and lines 8b and 8c are blank, add applicable taxpayer's Form 499R-2/W-2PR, Form W-2VI, Form W-2GU, Form W-2CM, or Form W-2AS wages and tips subject to Social Security tax withholding, and take one of the following actions: If wages and tips per Form 499R-2/W-2PR, Form W-2VI, Form W-2GU, Form W-2CM, or Form W-2AS are less than the maximum Social Security wage limit for the tax year filed, edit the total income on line 8d. If there is no Form 499R-2/W-2PR, Form W-2VI, Form W-2GU, Form W-2CM, or Form W-2AS income, lines 8a through 8c are blank, and line 8d is equal to or greater than the maximum Social Security wage limit for the tax year filed, "X" line 8d. Note: For prior year line 8d maximum thresholds, see IRM 3.11.3, Individual Income Tax Returns. If the amount is equal to or greater than the maximum Social Security wage limit for the tax year filed and line 8b or 8c contains a significant entry, take no action. Compute and edit line 8d when it is blank, dash, or zero and one of the following conditions is present: There are entries leading to an amount. The taxpayer has Form 499R-2/W-2PR, Form W-2VI, Form W-2GU, Form W-2CM, or Form W-2AS wages and/or tips subject to Social Security tax withholding. Note: Only edit the amounts from the "Social security wages" box and/or the "Social security tips" box if there is also an amount in the box for "Social Security tax withheld" .

# Bottom-Center Margin - SE Method Code

3.21.3.86.15.6.9 (10-29-2025) Bottom-Center Margin - SE Method Code Edit the SE Method Code to the bottom-center margin of Form 1040-PR or Form 1040-SS, Page 4 (or Schedule SE, Page 1). Exception: Do Not edit the SE Method Code when it can be determined that the entries on Part VI, line 2 (or Schedule SE, line 15) and/or Part VI, line 4 (or Schedule SE, line 17) are misplaced. Edit SE Method Code "1" when both of the following conditions are present: Part VI, line 2 (or Schedule SE, line 15) is blank or zero, and Part V, line 4b (or Schedule SE, line 4b) and Part VI, line 4 (or Schedule SE, line 17) have significant amounts that are equal. Exception: Do Not edit the SE Method Code when it can be determined that the entries on Part VI, line 2 (or Schedule SE, line 15) and/or Part VI, line 4 (or Schedule SE, line 17) are misplaced. Edit SE Method Code "2" when both of the following conditions are present: There is a significant entry on either Part VI, line 2 (or Schedule SE, line 15) or Part VI, line 4 (or Schedule SE, line 17), and SE Method Code "1" has not been assigned. Exception: Do Not edit the SE Method Code when it can be determined that the entries on Part VI, line 2 (or Schedule SE, line 15) and/or Part VI, line 4 (or Schedule SE, line 17) are misplaced.

# Forms and Schedules that are Allowed to be Attached to Form 1040-PR or Form 1040-SS

3.21.3.86.15.7 (01-01-2024) Forms and Schedules that are Allowed to be Attached to Form 1040-PR or Form 1040-SS The following forms and schedules are the only transcribed forms and schedules that can be attached to Form 1040-PR or Form 1040-SS: Form 8867 Form 8888 Form 8919 Form 8959 Form 9000 (TY21 and later) Schedule C Schedule H Schedule H-PR Schedule LEP (TY19 and later) Schedule SE Note: For TY19 and prior, only Section B of Schedule SE is transcribed. If Section A (short Schedule SE) is completed, convert to Schedule SE. If any other forms or schedules are attached, they must be "X" -ed or moved behind the last transcribable form.

# Form 1040-NR - General Instructions

3.21.3.86.16 (01-01-2023) Form 1040-NR - General Instructions Follow the current-year procedures when no specific prior-year instructions are given here. For TY20,Form 1040-NR was restructured to align with Form 1040, and uses the Form 1040, Schedules 1, 2, and 3. Form 1040-NR, pages 3 through 5, have been updated to separate schedules beginning in TY20. Note: Prior to TY20, these schedules did not have sequence numbers. Treat Schedule A (Sequence 7A), Schedule NEC (Sequence 7B), and Schedule OI (Sequence 7C) as pages 1, 2, and 3 of Sequence 07 when ordering the return.

# Form 1040-NR - Perfecting Form 1040-NR Country Code

3.21.3.86.16.1 (01-01-2018) Form 1040-NR - Perfecting Form 1040-NR Country Code For TY08 and prior, edit the appropriate 2 alpha character Country Code to the right of the taxpayer's response to the question "Of what country were you a citizen or national during the tax year?" according to Exhibit 3.21.3-7. Examine Form 1040-NR to determine the country in which the taxpayer was a permanent resident by reviewing: The taxpayer's response in the box headed "Give address in the country where you are a permanent resident" . If the taxpayer indicates "Same" or if the taxpayer does not respond to this question, determine the Country Code by using the address information in the caption. If the taxpayer uses a U.S. address in the caption area of the Form 1040-NR and does not respond to the question "Give address in the country where you are a permanent resident.", assign the Country Code for the country indicated in response to the question "Of what country were you a citizen or national during the tax year?" If unable to determine the correct Country Code from the information on Page 1 of the return (Form 1040-NR), review the information included in the rest of the return, including attachments, to assign the Country Code.

# Form 1040-NR - Manual Refund Procedure

3.21.3.86.16.2 (10-30-2024) Form 1040-NR - Manual Refund Procedure For TY08 and Prior: On a refund return when the nonresident has an address in the box notated, "give the address outside the U.S. to which you want any refund check mailed," which differs from the caption address and at least one is foreign, edit CCC "Y" and an action trail of "Manual Refund" . If a foreign address is present in the caption of Form 1040-NR or Form 1040-NR-EZ, and a name is present or has been edited as a second AIL, underline both. Then take the following actions for REFUND returns: •For Decedent Returns - Do Not Edit CCC "L" or CCC "W" . •Edit CCC "Y" and an action trail of "Manual Refund" . Exception: Do not edit CCC "Y" if CCC "3" has been edited. If taxpayer has elected to use Direct Deposit or has been issued an IRSN, do not issue a manual refund. An IRSN can be identified when the middle two digits are not 50-65, 70-88, 90-92, 94-99 and the number starts with a 9.

# Form 1040-NR - Filing Status Code (FSC)

3.21.3.86.16.3 (10-30-2024) Form 1040-NR - Filing Status Code (FSC) For TY19 and TY18Form 1040-NR, edit the Filing Status Code (FSC) using the table below: FS Box Marked And Then 2 Edit FSC "1" . 5 Edit FSC "3" . 6 Any of the following conditions are present: Spousal date of death was more than 2 years before the tax year of the return, Spousal date of death was within the tax year of the return. Spousal date of death was after the tax year of the return, OR Based on edited Country Code, taxpayer is not a resident of Canada, Mexico, or South Korea, or is not a student or business apprentice from India. Edit FSC "1" . 6 Both of the following conditions are present: No spousal date of death, or date of death was within the two years before the tax year of the return AND Based on edited Country Code, taxpayer is a resident of Canada, Mexico, or South Korea, or is a student or business apprentice from India. Edit FSC "5" . Multiple boxes marked or no boxes marked Spouse is not claimed as a dependent Edit FSC "1" . Multiple boxes marked or no boxes marked Spouse is claimed as a dependent Edit FSC "3" . For TY17 and prior, before editing the FSC, determine if the country the taxpayer resides in is one of the countries that is allowed to exempt a spouse. See table below for the countries allowed to claim a spouse. Note: The taxpayer will indicate that they are claiming their spouse by checking the box on line 7b, entering the spouse's name on line 7c, or including them in, "boxes checked on 7a and 7b." Country of Residence Spouse Canada Yes Mexico Yes India (Students and business apprentices only) Note: Review the occupation area, attachments, Schedule OI, or Form 1040-NR-EZ, page 2 to make the determination. Yes South Korea Yes U.S. National (residing in any other country) Note: Taxpayer may mark FS Box 1 or 3. Yes All Other Countries No For TY17 and prior, edit the Filing Status Code (FSC) using the table below: FS Box Marked And Then 1 or 2 Edit FSC "1" . 3 or 4 Spousal exemption is not claimed or not allowed Edit FSC "3" . 3 or 4 Spousal exemption is claimed and allowed Edit FSC "6" . 5 Spousal exemption is not claimed Edit FSC "3" . 5 Spousal exemption is claimed and the taxpayer is a resident of India and a student or business apprentice Edit FSC "6" . 5 Spousal exemption is claimed but not allowed Edit FSC "3" . 6 Spousal date of death was more than two years before the tax year of the return was within the tax year of the return, or was after the tax year of the return Edit FSC "1" . 6 No spousal date of death, or date of death was within the two years before the tax year of the return Edit FSC "5" . Multiple boxes marked or no boxes marked Spouse is not claimed as an exemption or dependent Edit FSC "1" . Multiple boxes marked or no boxes marked Spouse is claimed as an exemption or dependent Edit FSC "3" .

# Form 1040-NR - Dependents

3.21.3.86.16.4 (10-29-2025) Form 1040-NR - Dependents Dependents are restricted by country of residence. See IRM 3.21.3.84.7.1 for instructions showing which countries and what relations are eligible to be claimed. For TY24 and prior, edit an "X" to the left of the name of any dependent that does not qualify based on the country of residence. For TY24 and prior, if the spouse's name is present in the Dependents area, edit an "X" to the left of the name. For TY05 and prior, residents of Japan are allowed to claim exemptions for spouse, children, and other dependents.

# Form 1040-NR - Dependent Coding

3.21.3.86.16.4.1 (01-01-2023) Form 1040-NR - Dependent Coding For TY17 and prior, dependent position 2 will be edited as, "Child who did not live with you." Note: Always delete all entries on exemption position lines to the right of the line 7 area before editing the dependent positions. For TY17 and prior, if an eligible dependent is claimed in dependent position 2 (children on 7c who did not live with you due to divorce or separation), and Form 8332 with entries, Form 2120 with entries, or a copy of a divorce decree is attached, edit FPC "A" .

# Form 1040-NR, Line 1a - Wages, Salaries, Tips (TY21 and Prior)

3.21.3.86.16.5 (01-01-2024) Form 1040-NR, Line 1a - Wages, Salaries, Tips (TY21 and Prior) For TY21 and prior, edit SPC "E" when "HSH" is notated on or near line 1a.

# Form 1040-NR, Line 1b for TY21 and TY20 (Line 12 for TY19 and Prior) - Scholarship and Fellowship Grants

3.21.3.86.16.6 (10-29-2025) Form 1040-NR, Line 1b for TY21 and TY20 (Line 12 for TY19 and Prior) - Scholarship and Fellowship Grants For TY21 and prior, the following documents can be used to support a Form 1040-NR, line 1b (line 12 for TY19 and prior) entry: Form 1042-S with Income Code 16 (Income Code 15 for TY14 and prior), issued by a college or an educational institution A statement from a college or an educational institution (on their letterhead) that states the amount of a grant, the grantor's name, the dates it covers, and the expenses the grant covers Form 1098-T If it can be determined that a scholarship or fellowship grant entered on line 1b (line 12 for TY19 and prior) is exempt under a tax treaty (check Schedule OI, item L), take the following actions: Edit/renumber the treaty-exempt amount to line 1k, and "X" the treaty exemption if shown anywhere else on the return. Scholarship and fellowship income shown on a Form W-2 should be reported on Form 1040-NR, line 1a. If it is determined any Form W-2 income is included in the line 1b (line 12 for TY19 and prior) entry: Move the Form W-2 gross income to line 1a, and Do not adjust or compute Form 1040-NR, line 9 or 11. If an amount remains on line 1b (line 12 for TY19 and prior) after following the preceding instructions, edit that amount to Schedule 1, line 8r. Note: If an amount is present on line 10c (line 31 for TY19 and prior), see IRM 3.21.3.86.16.8 before editing Schedule 1, line 8r.

# Form 1040-NR - Income Exemption(s) Claimed Due to Tax Treaties

3.21.3.86.16.7 (01-01-2023) Form 1040-NR - Income Exemption(s) Claimed Due to Tax Treaties Use Exhibit 3.21.3-12 to verify if the treaty is valid when the tax year is listed in Exhibit 3.21.3-12. If the tax year is not included in Exhibit 3.21.3-12, use Exhibit 3.21.3-10 to verify if the treaty is valid.

# Form 1040-NR, Line 10c for TY21 and TY20 (Line 31 for TY19 and Prior) - Scholarship and Fellowship Grants Excluded

3.21.3.86.16.8 (10-29-2025) Form 1040-NR, Line 10c for TY21 and TY20 (Line 31 for TY19 and Prior) - Scholarship and Fellowship Grants Excluded For TY21 and prior, if the taxpayer claims a treaty exemption on line 10c (line 31 for TY19 and prior) (including a scholarship/fellowship treaty exemption), "X" the entry on line 10c (line 31 for TY19 and prior), and follow one of these sets of actions: If the treaty exemption claimed is determined to be valid and the taxpayer has entered the income and/or exemption on any of lines 1a through 8 or Schedule 1, Part I, "X" the income and/or exemption, and edit/renumber the valid treaty-exempt amount to line 1k. Note: Do not adjust or compute line 9 or 11a. If the treaty exemption is determined to be invalid, edit the exempted amount (if not already entered by the taxpayer) on line 1a if income is from Form W-2; on Schedule 1, line 8r if income is from Form 1042-S with Income Code 16 (Income Code 15 for TY14 and prior), Form 1098-T, or a college statement; or on another appropriate line of Form 1040-NR, page 1 or Schedule 1, page 1; AND"X" the claimed treaty exemption if entered by the taxpayer elsewhere on Form 1040-NR. Note: Do not adjust or compute line 9 or 11. If an amount remains on line 10c (line 31 for TY19 and prior) after following the preceding instructions, at least one of the following must be attached. If missing, correspond. Form 1042-S with Income Code 16 (Income Code 15 for TY14 and prior), issued by a college or an educational institution A statement from a college or an educational institution (on their letterhead) that states the amount of a grant, the grantor's name, the dates it covers, and the expenses the grant covers Form 1098-T If an amount remains on line 10c (line 31 for TY19 and prior) after following the preceding instructions and at least one of the items in IRM 3.21.3.86.16.8 (2) is attached, follow the instructions in the table below: If And Then The amount on line 10c (line 31 for TY19 and prior) exceeds the sum of all the following: All Form 1098-T payments received for qualified tuition and related expenses, box 1 amounts, and All tuition and required, course-related expenses (fees, books, supplies, equipment) from educational institution statements and from receipts, invoices and the like Note: While you can use statements from educational institutions that provide only institution-determined total expenses without a breakdown, do not use taxpayer-prepared or taxpayer-provided statements showing only total expenses or other statements showing only taxpayer-determined total expenses, with no breakdown or itemization. The sum of expenses calculated is less than or equal to the line 1b (line 12 for TY19 and prior) amount Subtract the sum of expenses calculated from the line 1b (line 12 for TY19 and prior) amount and edit the total to Schedule 1, line 8r. The amount on line 10c (line 31 for TY19 and prior) exceeds the sum of all the following: All Form 1098-T payments received for qualified tuition and related expenses, box 1 amounts, and All tuition and required, course-related expenses (fees, books, supplies, equipment) from educational institution statements and from receipts, invoices and the like. Note: While you can use statements from educational institutions that provide only institution-determined total expenses without a breakdown, do not use taxpayer-prepared or taxpayer-provided statements showing only total expenses or other statements showing only taxpayer-determined total expenses, with no breakdown or itemization. The sum of expenses calculated is greater than the line 1b (line 12 for TY19 and prior) amount Do not edit Schedule 1, line 8r. The amount on line 10c (line 31 for TY19 and prior) is less than or equal to the sum of all the following: All Form 1098-T payments received for qualified tuition and related expenses, box 1 amounts, and All tuition and required course-related expenses (fees, books, supplies, equipment) from educational institution statements and from receipts, invoices and the like. Note: While you can use statements from educational institutions that provide only institution-determined total expenses without a breakdown, do not use taxpayer-prepared or taxpayer-provided statements showing only total expenses or other statements showing only taxpayer-determined total expenses, with no breakdown or itemization, Line 10c is less than line 1b Subtract the line 10c amount from the line 1b amount and edit the total to Schedule 1, line 8r. Line 1b is blank (Line 12 for TY19 and prior) Any of the following is attached: Form 1042-S with Income Code 16 (Income Code 15 for TY14 and prior), issued by a college or an educational institution Form 1098-T A statement from a college or an educational institution (on their letterhead) that states the amount of a grant, the grantor's name, the dates it covers, and the expenses the grant covers Edit the total gross amount of scholarship or fellowship grants from all Form 1042-S with Income Code 16 (Income Code 15 for TY14 and prior) box 2 amounts, Form 1098-T box 5 amounts, and grant statements from educational institutions to Schedule 1, line 8r. Exception: If the scholarship or fellowship grant is included on line 1a, adjust line 1a and move amount to Schedule 1, line 8r. If line 1a is adjusted to zero and withholding has been claimed on line 25g, edit RPC "G" .

# Form 1040-NR - Domestic Production Activities Deduction (Form 8903)

3.21.3.86.16.9 (01-01-2020) Form 1040-NR - Domestic Production Activities Deduction (Form 8903) "X" any amount claimed.

# Form 1040-NR - Itemized/Standard Deductions

3.21.3.86.16.10 (10-30-2024) Form 1040-NR - Itemized/Standard Deductions For TY16, do not correspond for Schedule A if the taxpayer is a student/business apprentice of India and the amount on line 12 equals the Form 4684 amount plus the standard deduction. Dummy Schedule A and edit the amount on lines 7 and 8. See Job Aid 2513-701 in the prior year section for standard deductions for residents of India (student or business apprentices).

# Form 1040-NR, Line 12b - Charitable Contributions for Certain Residents of India (TY21 and TY20)

3.21.3.86.16.11 (01-01-2023) Form 1040-NR, Line 12b - Charitable Contributions for Certain Residents of India (TY21 and TY20) For TY21 and TY20, if there is an entry on this line, "X" line 12b if the taxpayer does not indicate that they were a resident of India on Schedule OI, line B.

# Form 1040-NR, Line 31 - Other Payments and Refundable Credits (Schedule 3, Line 15)

3.21.3.86.16.12 (10-29-2025) Form 1040-NR, Line 31 - Other Payments and Refundable Credits (Schedule 3, Line 15) For TY22 only, if there is an amount on line 31, and a notation of "IRA22DPE" , "CHIPS22DPE" , "IRA22TRE" , or something similar is present here or elsewhere on the return, indicating a Deemed Payment Election (DPE) is being claimed, follow these instructions: If "IRA22DPE" , "CHIPS22DPE" , or something similar is notated, edit CCC "3" and RPC "5" . If "IRA22TRE" or something similar is notated, edit RPC "5" . Fully code the return, and then pull to be rebatched under the original program using "DPE" as the Batch ID.

# Form 1040-NR, Schedule 3, Line 5a - Residential Energy Credits (Form 5695 Line 15) (TY22 and Prior)

3.21.3.86.16.13 (10-30-2024) Form 1040-NR, Schedule 3, Line 5a - Residential Energy Credits (Form 5695 Line 15) (TY22 and Prior) For TY22 and prior, if an amount is claimed on line 5a, Form 5695 must be attached. If missing and the amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, correspond for Form 5695. Note: If an amount is claimed on line 5a and only Form 5695, page 2 is attached, delete the amount on line 5a. For TY23, line 5a was line 5.

# Form 1040-NR, Schedule 3, Line 6f - Qualified Plug-In Motor Vehicle Credit (TY22 and Prior)

3.21.3.86.16.14 (01-01-2024) Form 1040-NR, Schedule 3, Line 6f - Qualified Plug-In Motor Vehicle Credit (TY22 and Prior) For TY22 and prior, if there is an amount on line 6f, Form 8936 must be attached. If missing, correspond for Form 8936.

# Form 1040-NR, Schedule 3, Line 13a - Deemed Payment Election (DPE) (TY22 Only)

3.21.3.86.16.15 (10-30-2024) Form 1040-NR, Schedule 3, Line 13a - Deemed Payment Election (DPE) (TY22 Only) For TY22 only, if there is an amount on line 31, and a notation of "IRA22DPE" , "CHIPS22DPE" , "IRA22TRE" , or something similar is present here or elsewhere on the return, indicating a Deemed Payment Election (DPE) is being claimed, follow these instructions: If "IRA22DPE" , "CHIPS22DPE" , or something similar is notated, edit CCC "3" and RPC "5" . If "IRA22TRE" or something similar is notated, edit RPC "5" . Fully code the return, and then pull to be rebatched under the original program using "DPE" as the Batch ID. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 1040-NR, Schedule 3, Line 13b (12b for TY20) (SFL) - Credit for Qualified Sick and Family Leave Wages (TY20, TY21, and TY22)

3.21.3.86.16.16 (01-01-2024) Form 1040-NR, Schedule 3, Line 13b (12b for TY20) (SFL) - Credit for Qualified Sick and Family Leave Wages (TY20, TY21, and TY22) For TY22, when an amount is claimed on line 13b (SFL), Schedule H must be attached. If missing, correspond for Schedule H. For TY21 and TY20, when an amount is claimed on line 13b (TY21) (SFL) or line 12b (TY20), Schedule H and Form 7202 must be attached. If either or both are missing, correspond for Schedule H and/or Form 7202. For TY22 and TY21, when an amount is claimed on line 13b, renumber line 13b as "SFL" . For TY20, when an amount is claimed on line 12b, renumber line 12b as "SFL" .

# Form 1040-NR, Schedule 3, Line 13g - Credit for Child and Dependent Care Expenses (Form 2441) (TY21 Only)

3.21.3.86.16.17 (01-01-2024) Form 1040-NR, Schedule 3, Line 13g - Credit for Child and Dependent Care Expenses (Form 2441) (TY21 Only) For TY21 only, when an amount is present, Form 2441 with an entry on line 10 must be attached. If missing, correspond for Form 2441.

# Form 1040-NR, Schedule 3, Line 13h (SL2) - Credit for Qualified Sick and Family Leave Wages (TY21 and TY22)

3.21.3.86.16.18 (01-01-2024) Form 1040-NR, Schedule 3, Line 13h (SL2) - Credit for Qualified Sick and Family Leave Wages (TY21 and TY22) For TY22, when an amount is claimed on line 13h, Schedule H must be attached. If missing, correspond for Schedule H. For TY21, when an amount is claimed on line 13h, Schedule H and Form 7202 must be attached. If either or both are missing, correspond for Schedule H and/or Form 7202. For TY22 and TY21, when an amount is claimed on line 13h, renumber line 13h as "SL2" .

# Form 1040-NR, Schedule A - Other Itemized Deductions

3.21.3.86.16.19 (03-04-2022) Form 1040-NR, Schedule A - Other Itemized Deductions "X" line 7 when the amount on Form 1040-NR, line 11a is over: Tax Year FSC 1 FSC 3 or 6 FSC 5 2017 $261,500 $156,900 $313,800 2016 $259,400 $155,650 $311,300 2015 $258,250 $154,950 $309,000 2014 $254,200 $152,525 $305,050 2013 $250,000 $150,000 $300,000 For TY12 and prior, do not "X" the amount for Other Miscellaneous Deductions.

# Form 1040-NR, Schedule C-EZ (Sequence 09, 10, 11) - Net Profit From Business

3.21.3.86.16.20 (03-12-2021) Form 1040-NR, Schedule C-EZ (Sequence 09, 10, 11) - Net Profit From Business Process following Schedule C instructions. For additional instructions, see IRM 3.11.3, Individual Income Tax Returns.

# Form 1040-NR - Self-Employment Tax

3.21.3.86.16.21 (03-04-2022) Form 1040-NR - Self-Employment Tax For TY09 and prior, if the taxpayer indicates that they are paying Self-Employment (SE) tax on Form 1040-NR, "X" SE tax or half of SE tax where found. Caution: If there is an amount on line 8 and the taxpayer does not indicate that it is SE income, take no action.

# Form 1040-NR - Gambling Winnings

3.21.3.86.16.22 (10-29-2025) Form 1040-NR - Gambling Winnings Gambling winnings are non-effectively connected income and are not reducible by gambling losses. Exception: Residents of Canada may claim losses but only to the extent of winnings. Exception: Professional gambling income is effectively connected and is reported on Schedule 1, page 1 with supporting Schedule C for TY19 and later, or on Form 1040-NR, page 1 with supporting Schedule C prior to TY19. Gambling income won in the U.S. by residents of the following foreign countries is not taxable by the U.S.: Country Country Austria Lithuania Belgium Luxembourg Bulgaria Netherlands Chile (see Note below) Russian Federation/Russia (see Note below) Czech Republic Slovak Republic/Slovakia Denmark Slovenia Finland South Africa France Spain Germany Sweden Hungary (see Note below) Tunisia Iceland Turkey Ireland Ukraine Italy United Kingdom (includes notations of Great Britain, England, Northern Ireland, Scotland, and Wales) Japan Latvia Note: The U.S. - Chile income tax treaty generally entered into effect on January 1, 2024. U.S. source gambling income of a Chilean resident is not subject to tax after that date. Note: The U.S. - Hungary tax treaty was terminated in 2023 and ceased to have effect with respect to gambling income after January 1, 2024. Note: The U.S. - Russia tax treaty is suspended for these taxes as of August 16, 2024. It may not be relied upon after that date to exclude gambling winnings from U.S. tax. Reminder: If line 11a is blank, dash, zero, or edited to be blank and line 23a is significant, edit RPC "J" . All other countries not listed in IRM 3.21.3.86.16.22 (2) are taxed at 30%. Exception: Malta is taxed at 10% starting in 2011. If gambling winnings are reported on Form 1040-NR, page 1 or Schedule 1, and the taxpayer is not a professional gambler: "X" the amount on page 1, or if found on Schedule 1, "X" Schedule 1, line 9. Multiply the amount of gross gambling winnings by 30%, and edit the result to Form 1040-NR, line 23a. Do not adjust or compute line 24.

# Form 1040-NR-EZ - General Instructions

3.21.3.86.17 (10-29-2025) Form 1040-NR-EZ - General Instructions Form 1040-NR-EZ is obsolete. Form 1040-NR-EZ was a simplified version of Form 1040-NR which was available to certain taxpayers with no dependents. Convert allForm 1040-NR-EZ to current year Form 1040-NR for transcription. This may be done by either: Renumbering Form 1040-NR-EZ, and attaching Form 6114-A, as needed, or Using Form 13899 to convert Form 1040-NR-EZ, and attaching Form 6114-A, as needed. Form 1040-NR-EZ should be processed using the instructions for Form 1040-NR, unless otherwise stated. Convert Form 1040-NR-EZ as follows: Form 1040-NR-EZ Line or Item: Type: Convert By/To: Form Title (Form 1040-NR-EZ) T-Line Circle "EZ." Caption Information Tax Period TIN Taxpayer Name Additional Information Line Street Address City/State/Province Mail Routing Code Country Code T-Line Edit on the Form 1040-NR-EZ following normal Form 1040-NR procedures. SPC Code T-Line Edit in the right margin to the right of the caption above the Country Code on Form 1040-NR-EZ. Filing Status T-Line Edit FSC "3" if the taxpayer marked only box 2. Otherwise, edit FSC "1" . Renumbering: Edit in the area to the left of the Single nonresident alien box on Form 1040-NR-EZ. Converting: Edit in the area to the left of the "Single" box on Form 13899. CCC Code T-Line Renumbering: Edit in the blank area to the right of the "Married nonresident alien" on Form 1040-NR-EZ Converting: Edit the area above "Dependents" identifying number on Form 13899 Received Date T-Line Renumbering: Edit on the dotted portion of line 3 on Form 1040-NR-EZ. Converting: Edit in the empty space to the right of "Dependents (see instructions):" on Form 13899. Line 3 T-Line Lines 1z Line 4 T-Line Schedule 1, line 1 Line 5 T-Line Schedule 1, line 8r or Form 1040-NR, line 1a. See IRM 3.21.3.86.16.6. Line 6 T-Line Line 1k Line 7 T-Compute Line 9 FPC T-Line Renumbering: Edit in the right margin to the right if line 7 on Form 1040-NR-EZ. Converting: Edit in the right margin to the right of line 7 on Form 13899. Line 8 T-Line Schedule 1, line 8r. See IRM 3.21.3.16.10 Line 9 T-Line Schedule 1, line 21 Line 10 T-Compute Line 11a Line 11 T-Line See IRM 3.21.3.86.17.2, Itemized Deductions on Form 1040-NR-EZ. Line 14 T-Compute Line 15 Line 15 T-Line Line 16 Line 16 T-Line Schedule 2, line 7 Line 17 T-Compute Line 24 Line 18a T-Line Line 25d Line 18b T-Line Line 25g Line 19 T-Line Line 26 Line 20 T-Line Line 29 Line 21 T-Compute Line 33 RPC Code T-Line Edit to the lower-left margin of page 1 of Form 1040-NR-EZ. Line 23a T-Compute Renumbering: Edit as line 35a on Form 1040-NR-EZ. Converting: Edit to line 35a of Form 13899. Line 23b T-Line Line 35b on Form 1040-NR-EZ Line 23c T-Line Line 35c on Form 1040-NR-EZ Line 23d T-Line Line 35d on Form 1040-NR-EZ Line 24 T-Line Line 36 Line 25 T-Compute Line 37 Line 26 T-Line Line 38 Signature Area: Third Party Designee Checkbox Third Party Designee Name Third Party Designee PIN IP Pin Preparer SSN or PTIN Preparer EIN Preparer Phone Number Preparer Code T-Line Edit on the Form 1040-NR-EZ following normal Form 1040-NR procedures. RPC Code T-Line Renumbering: Edit in the bottom-left margin of Form 1040-NR-EZ. Converting: Edit in the bottom-left margin of Form 13899. Action Code T-Line Renumbering: Edit in the bottom-center margin of Form 1040-NR-EZ. Converting: Edit in the bottom-center margin of Form 13899. Audit Code T-Line Renumbering: Edit in the bottom-right margin of Form 1040-NR-EZ. Converting: Edit in the bottom-right margin of Form 13899. Form 1040-NR-EZ, Page 2 (Schedule OI) "X" Form 1040-NR-EZ, page 2. Reminder: Do not transfer third party information, direct deposit information, or paid preparer information when using Form 13899 to convert. Refer to Job Aid 2513-701 for an illustration of converting Form 1040-NR-EZ.

# Processing Form 1040-NR-EZ

3.21.3.86.17.1 (01-01-2024) Processing Form 1040-NR-EZ Do not correspond if there are indications of conditions which are not eligible for Form 1040-NR-EZ, but which are valid for Form 1040-NR in the tax year filed. Convert the additional items following Form 1040-NR instructions. Review the return following the instructions cited below. Line numbers are for TY19 Form 1040-NR-EZ. Condition Then Government Service Treaty Verify taxpayer holds an A-1 or A-2 Visa, and see Exhibit 3.21.3-14. Line 3: Wages See IRM 3.21.3.84.8.1. Line 5: Scholarship and Fellowship Grants If an amount is present, see IRM 3.21.3.86.16.6. Line 6: Total Income Exempt by Treaty (Page 2, Schedule OI, Item J) If an amount is present, see IRM 3.21.3.84.8.6. Line 8: Scholarship and Fellowship Grants Excluded If an amount is present, see IRM 3.21.3.86.16.8. Line 10: Adjusted Gross Income See IRM 3.21.3.84.9.2. Line 11: Itemized Deductions Continue to IRM 3.21.3.86.17.2, Line 11 - Itemized Deductions on Form 1040-NR-EZ. Line 14: Taxable Income See IRM 3.21.3.84.10.3. Line 15: Tax If the taxpayer indicates, "Exempt" or "Treaty," see IRM 3.21.3.84.10.4. Line 16: Unreported Social Security and Medicare Tax If an amount is present, see IRM 3.21.3.84.20.5. Line 17: Total Tax See IRM 3.21.3.84.12.4. Line 18a: Withholding from Form 1042-S See IRM 3.21.3.84.13.2. Line 18b: Withholding from Form 1042-S See IRM 3.21.3.84.13.5. Line 19: Estimated Tax Payments Correct any misplaced entries if they are determined not to be estimated tax payments. Line 21: Total Payments See IRM 3.21.3.84.13.13. Line 23a: Refund Due See IRM 3.21.3.84.14.1. Line 23e: Refund Check See IRM 3.21.3.83.6 for manual refund procedures. Line 24: Estimated Tax Credit Elect See IRM 3.21.3.84.14.4. Line 25: Amount You Owe (Balance Due) See IRM 3.21.3.84.14.5. Signature See IRM 3.21.3.84.15. Identify Protection Personal Identification Number (IP PIN) See IRM 3.21.3.84.17. Preparer Data See IRM 3.11.3.14.8 Paid Preparer Data. Exception: Do not edit the E-File Waiver Indicator on Form 1040-NR-EZ. All T-Line information must be transferred when converting. Exception: Do not transfer third party information, direct deposit information, or paid preparer information when using Form 13899 to convert.

# Line 11 - Itemized Deductions on Form 1040-NR-EZ

3.21.3.86.17.2 (01-01-2024) Line 11 - Itemized Deductions on Form 1040-NR-EZ If an amount is present on Line 11, total any amounts withheld on Form W-2 or similar statements, or on Form 1042-S, for state and/or local income taxes (including state disability insurance). Take appropriate actions according to the table below, whether or not there are any withholding documents attached: If the line 11 amount And Then Includes only state and local income taxes (including possible state disability insurance) Dummy Schedule A to include the amount for state and local taxes (including possible state disability insurance) on Lines 1a and 8. Includes withholding for federal income tax (Form W-2, box 2 or Form 1042-S) Dummy Schedule A to include only the amount for state and local taxes on Line 1a and 8. Includes withholding for Social Security Tax (Form W-2, box 4) Dummy Schedule A to include only the amount for state and local taxes on Line 1a and 8. If the taxpayer is an "F" , "J" , "M" , or "Q" visa holder, correspond with a 513C letter and see IRM 3.21.3.84.21.11. Taxpayer notation indicates amount includes other than state or local income taxes (job expenses, charitable contributions, etc,) or source of amount cannot be determined If Schedule A, Form 1040-NR cannot be dummied based on the information provided and IRM 3.21.3.84.22, correspond for Form 1040-NR and Schedule A with Form 13900, using the fill-in, "The only itemized deduction you can claim on Form 1040-NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents, is for state and local income taxes. If you want to claim other itemized deductions, complete and submit Form 1040-NR including page 3, Schedule A, Itemized Deductions." Can be determined to be a current or prior year standard deduction The taxpayer is NOT a student/business apprentice from India "X" line 11. Can be determined to be a current or prior year standard deduction The taxpayer is a student/business apprentice from India Dummy Schedule A by editing the standard deduction on lines 7 and 8.

# Attachment Guide

Exhibit 3.21.3-1 Attachment Guide (1) Examine all attachments to the return. Leave attachments with the return unless specifically instructed otherwise. Refer to the table below for specific attachment-by-attachment instructions. Note: See IRM 3.11.3, Individual Income Tax Returns if not found within this list. Reminder: Do not detach attachments (except remittance) when sending the return back to the taxpayer. FORM/DOCUMENTS DETACH ACTION REQUIRED CP 01A - We Assigned You An Identity Protection Personal Identification Number (IP PIN) No Move CP 01A to the back of the return and continue processing. CP 01H - ID Theft Lock No Route the entire return to ECU (Entity Control Unit) Exception: Do not route CP 01H that is "X" -ed. LTR 2358C Numbered Unnumbered No No Edit Action Code "331" . Route to Exam. LTR 2894C/SP, Individual Return Incomplete for Processing: Form 1040-PR and Form 1040-SS No Route to Rejects Stop 6126 AUSC. Exception: Do not route to Rejects, and continue processing if: • "Process as Original" is present on the return. • The letter date is more than 60 calendar days prior to the current date. LTR 4087C, International Return Incomplete for Processing: Form 1040-NR, Form 1040-NR-EZ, Form 1040, Form 1040-SR, Form 1040-A (2017 and prior), Form 1040-EZ (2017 and prior) No Route to Rejects Stop 6126 AUSC. Exception: Do not route to Rejects, and continue processing if: • Process as Original is present on the return. • The letter date is more than 60 calendar days prior to the current date. LTR 4883C - Potential Identity Theft during Original Processing No Route the entire return and all attachments to RIVO Stop 6579 AUSC. The return may be an original or a copy, and the submission may include, but not limited to, photocopies of passports, Social Security cards, and driver licenses, and Form 14039. LTR 5071C - Potential Identity Theft during Original Processing with Online Option No Route the entire return and attachments to RIVO Stop 6579 AUSC. The return may be an original or a copy, and the submission may include, but not limited to, photocopies of passports, Social Security cards, and driver licenses, and Form 14039. LTR 5216 - Taxpayer Cannot Authenticate No Route the entire return and attachments to RIVO Stop 6579 AUSC. The return may be an original or a copy, and the submission may include, but not limited to, photocopies of passports, Social Security cards, and driver licenses, and Form 14039. LTR 5447C - Potential Identity Theft during Original Processing; Foreign Address No Route the entire return and attachments to RIVO Stop 6579 AUSC. The return may be an original or a copy, and the submission may include, but not limited to, photocopies of passports, Social Security cards, and driver licenses, and Form 14039. LTR 5747C - Potential Identity Theft during Original Processing - TAC AUTH ONLY No Route the entire return and attachments to RIVO Stop 6579 AUSC. The return may be an original or a copy, and the submission may include, but not limited to, photocopies of passports, Social Security cards, and driver licenses, and Form 14039. LTR 6167C - Identity Authentication Incomplete (IMF) No Route the entire return and attachments to RIVO Stop 6579 AUSC. The return may be an original or a copy, and the submission may include, but not limited to, photocopies of passports, Social Security cards, and driver licenses, and Form 14039. Form W-2, W-2G, etc. - Wage and Tax Statement Any related copy Unrelated or loose copy Employer's copy submitted with Schedule H No Yes Yes Take no action. Route to Accounts Management Route to Receipt and Control Form W-7/W-7(SP) - Application for IRS Individual Taxpayer Identification Number (ITIN) Unnumbered Numbered No Follow local procedures to route ITIN unit if unnumbered See IRM 3.21.3.12.2.4 if numbered Form W-7A - Application for Taxpayer Identification Number for Pending U.S. Adoptions No Do not detach Form W-7A from the return. Route to Entity. Do NOT send Letter 86C. When the ATIN unit sends the return back through processing after the ATIN has been assigned, they will edit for example, "02 RPC MM-DD-YYYY" in the left side margin for the date the ATIN was assigned on refund returns only. Edit this date on the Edit Sheet, if current date is after the filing due date. Form W-9 - Request for Taxpayer Identification and Certification No If attached with correspondence, route to Accounts Management If attached with no correspondence, take no action Form 390 - A.S. Individual Income Tax Return Original Duplicate Yes No Transship return to American Samoa at: American Samoa Tax office Executive Office Bldg. First Floor Pago Pago, AS 96799. No action required. Form 843 - Claim for Refund and Request for Abatement Yes Route to Accounts Management. Note: See IRM 3.21.3.84.21.11 Note: If Form 8316 is also attached with Form 843, they must remain together. Form 911 - Request for Taxpayer Advocate Service Assistance (And Application for a Taxpayer Assistance Order) Yes Route the Form 911 to Taxpayer Advocate Service, and continue processing the return. Form 926 - Return by a U.S. Transferor of Property to a Foreign Corporation No Edit Audit Code "H" and continue processing the return. Form 982 - Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) No Edit the Form 982 Indicator Code "1" on dotted portion of Schedule 1, Line 11. If Schedule 1 is not attached, dummy Schedule 1 by editing the Indicator Code. Form 1040-C - U.S. Departing Alien Income Tax Return No Edit CCC "Y" and an action trail. Form 1040-ES - Estimated Tax for Individuals No If remittance is attached for 1040-ES, refer to the manager. Form 1040 Guam Individual Income Tax Return No Transship return to Guam at: Department of Revenue and Taxation Taxpayer Services Division P.O. Box 23607 Barrigada, GU 96921. Form 1040-AS No Transship return to American Samoa. Form 1040-NR Schedule P - Gain or Loss of Foreign Persons From Sale or Exchange of Certain Partnership Interests No For TY24 and subsequent, if there is an entry for "Enter the total proceeds/amount realized from the transfers of partnership interests on all of your Schedules P (Form 1040-NR, Part II, Line 1. See instructions.", edit RPC "P" . Form 1040-V - Payment Voucher Without Remittance With remittance and unnumbered With remittance and numbered No No No Take no action if it does not obstruct T-lines. If it does obstruct T-lines, move voucher to the back of return and continue processing. Route the entire return to Receipt and Control via your manager. Consult your Work leader. Form 1042 - Annual Withholding Tax Return for U.S. Source Income of Foreign Persons Yes Transship to Ogden Service Center (OSC.) Form 1042-S - Foreign Persons U.S. Source Income Subject to Withholding No See IRM 3.21.3.84.13.5 Form SSA-1042S - Social Security Benefit Statement or Form RRB-1042S - Statement for Nonresident Aliens Recipients of Payments by the Railroad Retirement Board No See IRM 3.21.3.83.12 Form 1045 - Application for Tentative Refund Original Form 1040 or Form 1040-NR Return posted (TC 150 present) Return not posted (no TC 150) Photocopied Form 1040 or Form 1040-NR which is unnumbered. Photocopied Form 1040 or Form 1040-NR which is numbered. Photocopied Form 1045 without page 1 No Yes No No No Research for a TC 150 Move the Form 1045 to the front of the return and route the entire package to Accounts Management Take the following actions: Edit the received date to the front of Form 1045. Photocopy Page 1 and 2 of Form 1040 or Form 1040-NR and appropriate forms/schedules. Forward Form 1045 and copies to Accounts Management. Process original Form 1040 or Form 1040-NR. Note: Correspond for any missing information. Edit the received date to the front of Form 1045. Route to entire package to Accounts Management. Edit Action Code "640" on Form 1040 or Form 1040-NR and route Form 1045 to Accounts Management. Take no action. Form 1062 - Deferral of Tax on Gain From the Sale or Exchange of Qualified Farmland Property to Qualified Farmers No Edit FPC "F" (TY 202607 and later, fiscal filer only). Form 1065 - U.S. Return of Partnership Income Signed original 1065 or signed photocopy of 1065 Unsigned photocopy of 1065 Yes No Route to Receipt and Control. Note: Include any related Schedules K-1. Take no action. Form 1096 - Annual Summary and Transmittal of U.S. Information Returns Yes Route Form 1096 and copies "A" of Form 1099 to Receipt and Control. Form 1120 (series) - U.S. Corporation Income Tax Return Yes Route to Receipt and Control. Note: Include any related Schedules K-1. Form 1127 - Application for Extension of Time for Payment of Tax Due to Undue Hardship Yes Edit the return received date in the upper-right corner of Form 1127. Attach a photocopy of the taxpayer's envelope, if present. Route to Receipt and Control Form 1128 - Application to Adopt, Change or Retain Tax Year No Documentation for a Short Period Return. See IRM 3.11.3, Individual Income Tax Returns. Form 1310 - Statement of Person Claiming Refund Due a Deceased Taxpayer No See IRM 3.11.3, Individual Income Tax Returns. Form 2159 - Payroll Deduction Agreement Yes Route to Compliance Services Collections Operation (CSCO) Form 2210 or Form 2210-F - Underpayment of Estimated Tax by Individuals, Estates and Trusts No For Form 1040, see IRM 3.11.3, Individual Income Tax Returns. For Form 1040-NR and Form 1040-NR-EZ, see IRM 3.21.3.84.14.6. Form 2275 - Records Request, Charge and Recharge No Edit DLN, if present and received date on Form 2275. Staple to the back of the return so that form shows at least one inch above top. Form 2350 - Application for Extension of Time to File U.S. Income Tax Return No Support for Schedule 3, line 10. Form 2439 - Notice to Shareholders of Undistributed Long-Term Capital Gains No Support for Schedule 3, line 13a of Form 1040 or Form 1040-NR. See IRM 3.11.3, Individual Income Tax Returns. Form 2848 - Power of Attorney (POA) and Declaration of Representative Yes Detach all originals and copies of Form 2848, including the white paper. The white paper is also considered to be a 3rd page of the POA and must remain with the POA. This includes Form 2848 which cite Treasury Regulation 1.6012(a)(5) or 1.6012-1(b)(3)USAID/G/HCD/POSS/TAX. Send to the following address following local procedures: PAMC International CAF STOP 4-H14.123 2970 Market Street Philadelphia, PA 19104 - 5016 Caution: The white page must remain with the Form 2848, including Form 8821 in order for the POA to be processed. Look for any additional pages related to the Power of Attorney, and keep all of them attached to the POA. Form 3439 - Statement of Annual Income (Individual) No Route the entire return to Collections. Form 3449 - Referral Report No Edit DLN, if present and received date on Form 3449. Staple to the back of the return so that the form shows at least one inch above the top. Form 3465 - Adjustment Request No Edit DLN, if present and received date on Form 3465. Staple to the back of the return so that the form shows at least one inch above the top. Form 3468 - Investment Credit No Support for Form 3800. See IRM 3.11.3, Individual Income Tax Returns. Form 3520 - Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts No Edit Audit Code "H" and continue processing. Form 3520-A - Annual Information Return of Foreign Trusts With a U.S. Owner (Under section 6048(b)) No Edit Audit Code "H" and continue processing. Form 3903 - Moving Expenses No Support for Schedule 1, line 14 of Form 1040 or Form 1040-NR. Form 3911 - Taxpayer Statement Regarding Refund Yes No If Form 3911 is for a different tax period from the return, detach and route to ICT. If the Form 3911 is for the same tax period as the return or no tax period indicated, research for TC 150. If posted, route entire return to ICT. If no TC 150 has posted, continue processing the return. Form 4029 - Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits Original Photocopy of approved application, Form 4029 Yes No Route immediately to the Compliance function at: Philadelphia Campus 4-G08-151 2970 Market Street Philadelphia, PA 19104 See IRM 3.11.3, Individual Income Tax Returns. Form 4361 - Application for Exemption from Self-Employment Tax for Use by Ministers, Members of Religious Orders, and Christian Science Practitioners Original Photocopy or approved application of Form 4361 Yes No Edit envelope Postmark Date (or received date if an envelope is not attached) on Form 4361 and route it, along with any additional copies of Form 4361 to the Compliance Function at: Internal Revenue Service Philadelphia, PA 19255-0733 See IRM 3.11.3, Individual Income Tax Returns. Form 4506 and Form 4506-T - Request for Copy of Tax Return Yes Route to Receipt and Control. Form 4506-F - Identity Theft Victim's Request for a Copy of Fraudulent Return No Route to Accounts Management Form 4549 - Report of Income Tax Examination Changes Yes Route to Examination or to Exam Field Support (EFS) at Mail stop 632-2 if shown on return envelope. Form 4563 - Exclusion of Income for Bona Fide Residents of American Samoa No See IRM 3.21.3.76.1 and IRM 3.21.3.76.1.3 Form 4810 - Request for Prompt Assessment Under Internal Revenue Code 6501(d) Yes Route Form 4810 and a copy of the Letters of Testamentary, if present, to Examination. Form 4868 - Application for Automatic Extension of Time to File U.S. Individual Income Tax Return No See IRM 3.21.3.8.4 and IRM 3.11.3, Individual Income Tax Returns. Form 4970 - Tax on Accumulation Distribution of Trusts No See IRM 3.11.3, Individual Income Tax Returns. Form 5074 - Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Island (CNMI) No See IRM 3.21.3.77.1.2 and IRM 3.21.3.78.1.2 Form 5471 - Information Return of U.S. Persons with Respect to Certain Foreign Corporations, Form 5471 Schedule G-1, or another schedule supporting Form 5471 No Edit Audit Code "H" and FPC "W" and continue processing. Form 5472 - Information Return of Foreign Owned Corporation No Edit Audit Code "H" and continue processing. Form 5495 - Request for Discharge from Personal Liability under Internal Revenue Code Section 2204 or 6905 No Route to Examination. Form 5500-EZ - Annual Return of A One-Participant (Owners and Their Spouses) Retirement Plan and Foreign Plan Yes Route to OSC. Form 5564 - Notice of Deficiency - Waiver From Examination From Collection From Underreporter (URP) No Route to Underreporter. Form 5564-A From Examination From Collection No No Route entire return to Examination. Route entire return to Collection. Form 5884 - Work Opportunity Credit No Support for Form 3800. See IRM 3.11.3, Individual Income Tax Returns. Letter 5935 - (Form 15023) Yes Misrouted or Loose, route to LB&I, Stop 4301 AUSC Form 6478 - Biofuel Producer Credit No Support for Form 3800. See IRM 3.11.3, Individual Income Tax Returns. Form 6497 - Information Return of Nontaxable Energy Grants or Subsidized Energy Financing Yes Route form to: LB&I Central Compliance Practice Area 1919 Smith Street M/S 1000-HOU Houston, TX 77002 Form 6513 - Extension of Time to File Not Allowed With a letter of disagreement or cancelled check By itself Yes No Route the form and letter (or cancelled check) to Accounts Management. Take no action. Form 6765 - Credit for Increasing Research Activities No Support for Form 3800. See IRM 3.11.3, Individual Income Tax Returns. Form 6781 - Gains and Losses From Section 1256 Contracts and Straddles No If the taxpayer notes Deferred tax from Form 6781 on or near line 38 Form 1040 or Form 1040-NR: Edit CCC "3" . Edit Action Code "620" . Attach Form 4227 and notate Tax Straddle Investment. Form 7004 - Application for Automatic 6 - Month Extension of Time to File Certain Business Income Tax, Information and Other Returns Yes Route to Receipt and Control. Form 7202 - Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals (TY20 and TY21 only) No Support for Schedule 3, lines 13b and 13h. Form 8082 - Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR) No Edit Audit Code "Q" and continue processing. Form 8275 and Form 8275-R - Disclosure Statement/Regulation Disclosure Statement No Edit Audit Code "K" and continue processing. Form 8283 - Noncash Charitable Contributions No Support for Schedule A. See IRM 3.21.3.84.22.3 and IRM 3.11.3, Individual Income Tax Returns Form 8288 - U.S. Withholding Tax Return for Certain Dispositions by Foreign Persons Original Copy Yes No Route to OSC Take no action. Note: Cannot be used as FIRPTA verification of withholding. Form 8288-A - Statement of Withholding on Certain Dispositions by Foreign Persons No See IRM 3.21.3.84.13.4 Form 8288-B - Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests Yes Note: Be sure to edit ITIN number before detaching. Route to OSC: Director, OSC Accounts Management Operation 1973 N. Rulon White Boulevard Ogden, UT 84404 Note: Send only originals and not copies to OSC. Form 8302 - Electronic Deposit of Tax Refund of $1 Million or More No Take no action in regards to Form 8302. See IRM 3.11.3, Individual Income Tax Returns. Form 8316 - Information Regarding Request for Refund of Social Security Tax Erroneously Withheld on Wages Received by a Nonresident Alien on an F, J, or M Type Visa Yes Route to Accounts Management. Note: If Form 843 is also attached with Form 8316, they must remain together. Form 8379 - Injured Spouse Claim and Allocation No See IRM 3.11.3, Individual Income Tax Returns Form 8396 - Mortgage Interest Credit No Support for Schedule 3, line 6g. See IRM 3.11.3, Individual Income Tax Returns Form 8404 - Interest Charge on DISC-Related Deferred Tax Liability Yes Route to Receipt and Control. Form 8453 - U.S. Individual Income Tax Transmittal for an IRS e-file Return No When Form 8453 is on top of the return, route the entire return to Receipt and Control. Otherwise, take no action. Form 8586 - Low-Income Housing Credit No See IRM 3.11.3, Individual Income Tax Returns Form 8609 - Low-Income Housing Credit Allocation and Certification No Support for Form 8586. See IRM 3.11.3, Individual Income Tax Returns Form 8611 - Recapture of Low-Income Housing Credit No Support for Schedule 2, Line 16. See IRM 3.11.3, Individual Income Tax Returns. Form 8621 - Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund No "X" Form 8621. Form 8689 - Allocation of Individual Income Tax to the U.S. Virgin Islands No See IRM 3.21.3.79.1.2 Form 8697 - Interest Computation Under the Look-Back Method for Completed Long-Term Contracts Refund or Amended Return (line 9, Form 8697) Zero or Balance Due (line 10, Form 8697) Yes No Route Form 8697 to Accounts Management. Take no action. Form 8801 - Credit for Prior Year Minimum Tax - Individuals, Estates, and Trusts No Support for Schedule 3, line 6b (Form 1040 and Form 1040-NR). See IRM 3.11.3, Individual Income Tax Returns. Form 8804 Series (including Form 8804-C) - Annual Return for Partnership Withholding Tax (Section 1446) Original Duplicate Yes No Route to OSC. Take no action. Form 8805 - Foreign Partner's Information Statement of Section 1446 Withholding Tax No Support for Form 1040-NR, line 25e. See IRM 3.21.3.84.13.3 Form 8813 - Partnership Withholding Tax Payment Voucher (Section 1446) Original Duplicate Yes No Route OSC. Take no action. Caution: If remittance is attached refer to Manager or Work Leader. Form 8815 - Exclusion of Interest from Series EE and I U.S. Savings Bonds Issued after 1989 No Support for Schedule B, line 3 - See IRM 3.11.3, Individual Income Tax Returns. Form 8820 - Orphan Drug Credit No Support for Form 3800. See IRM 3.11.3, Individual Income Tax Returns. Form 8821 - Tax Information Authorization Yes Detach all originals and copies of Form 8821, including 3rd page (white paper). Send to the following address following local procedures: PAMC International CAF STOP 4-H14.123 2970 Market Street Philadelphia, PA 19104-5016. Note: Look for any additional pages related to the authorization, including Form 2848 and/or General Power of Attorney, and keep all documents attached. Form 8822 - Change of Address Change of Address Box 1 or no box is checked Box 2 is checked No No Yes Edit the new address from Form 8822 to the caption area unless there is an indication that the address is not permanent. Take no action Route Form 8822 to Entity Control. Form 8826 - Disabled Access Credit No Support for Form 3800. Form 8828 - Recapture of Federal Mortgage Subsidy No Support for total tax on Form 1040, line 24. Note: "X" Form 8828. Form 8829 - Expenses for Business Use of Your Home No Support for Schedule C, line 30. See IRM 3.11.3, Individual Income Tax Returns. Form 8830 - Enhanced Oil Recovery Credit No Support for Form 3800. Form 8833 - Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) Note: The headings of the statement must read Treaty-Based Return Position Disclosure Under or Section 6114 or 7701(b). No Edit CCC "C" on Form 1040-NR. Form 8835 - Renewable Electricity Production Credit No Support for Form 3800. Form 8840 - Closer Connection Exception Statement for Aliens No Take no action. Form 8843 - Statement for Exempt Individuals and Individuals with a Medical Condition No Take no action Form 8845 - Indian Employment Credit No Support for Form 3800. See IRM 3.11.3, Individual Income Tax Returns. Form 8846 - Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips No Take no action. Form 8849 - Claim for Refund of Excise Taxes No Edit CCC "Y" , and leave an action trail. Form 8854 - Initial and Annual Expatriation Information Statement Unnumbered return: No stamp indicating LB&I received return Stamp indicating LB&I received return Numbered return No No Stop coding. Route entire return containing Form 8854 to Stop 4301 AUSC. Edit Audit Code "K" , and continue processing as normal. Edit Audit Code "K" , and continue processing as normal. Form 8857 - Request for Innocent Spouse Relief Yes Expedite on a daily basis Form 8857 and any supporting documentation to CSPC at the following address: Internal Revenue Service CSO (Campus Support Operation) Stop #840F 7940 Kentucky Drive Florence, KY 41042 Caution: Form 8857 must be received by CSPC within 10 days of receipt by the IRS. Note: Edit CCC "3" and leave an action trail on both Forms. Form 8859 - District of Columbia First-Time Homebuyer Credit No Support for Schedule 3, line 6h. See IRM 3.11.3, Individual Income Tax Returns. Form 8862/8862(SP) - Information to Claim Certain Refundable Credits After Disallowance No Edit Audit Codes as listed below and continue processing: "U" when Part II EIC portion of the form is completed. "2" when Part III CTC/RCTC/ACTC/ODC portion of the form is completed.(TY17 and later) "3" when Part IV AOTC portion of the form is completed. (TY17 and later) Note: "X" this form. Form 8865 - Return of U.S. Persons With Respect to Certain Foreign Partnerships No Edit FPC "X" when Form 8865 is attached to the return (Form 1040 or Form 1040-NR). Form 8885 - Health Coverage Tax Credit (TY21 and prior) No Support for Schedule 3, line 13c (Form 1040/1040-NR) or support for Form 1040-SS/PR, Part I, line 10. Form 8886 - Reportable Transaction Disclosure Statement No Edit FPC "J" and continue processing. Form 8898 - Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Territory No stamp indicating LB&I received return Stamp indicating LB&I received return No No Stop coding. Route entire return to Stop 4301 AUSC. Continue processing as normal. Form 8938 - Statement of Foreign Specified Foreign Financial Assets No See processing instructions in IRM 3.11.3.6.2.10, Form 8938, Statement of Foreign Financial Assets. These instructions also apply to Form 1040-NR. Form 8948 - Preparer Explanation for NOT Filing Electronically No Edit E-File Waiver indicator, see IRM 3.11.3, Individual Income Tax Returns. Exception: Do not edit indicator on Form 1040-NR. Form 8957 - Foreign Account Tax Compliance Act (FATCA) Registration Yes Route to Entity Stop 6182 AUSC Form 8990 - Limitation on Business Interest Expense for Section 163(J) No Edit FPC "R" when Form 8990 is attached to the return (Form 1040, Form 1040-NR, Form 1040-SS, or Form 1040-PR). Form 8992 - U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI) No Edit FPC "R" when Form 8992 is attached to the return (Form 1040, Form 1040-NR, Form 1040-SS, or Form 1040-PR). Form 8893 - Deduction for Foreign-Derived Intangible income and Global Intangible Low-Taxed Income No Edit FPC "R" when Form 8993 is attached to the return (Form 1040, Form 1040-NR, Form 1040-SS, or Form 1040-PR). Form 8994 - Employer Credit for Paid Family and Medical Leave No Edit FPC "R" when Form 8994 is attached to the return (Form 1040, Form 1040-NR, Form 1040-SS, or Form 1040-PR). Form 8995-A Schedule A - Specified Service Trades or Businesses No Edit FPC "H" when Form 8995-A Schedule A is attached to the return (Form 1040 or Form 1040-NR) and delete the Schedule. Form 8995-A Schedule B - Aggregation of Business Operations No Edit FPC "H" when Form 8995-A Schedule B is attached to the return (Form 1040 or Form 1040-NR) and delete the Schedule. Form 8995-A Schedule D- Special Rules for Patrons of Agricultural or Horticultural Cooperatives No Edit FPC "H" when Form 8995-A Schedule D is attached to the return (Form 1040 or Form 1040-NR) and delete the Schedule. Form 9465/9465 (SP) - Installment Agreement Request Yes Perfect the Amount Paid and Total Tax Due entries on Form 9465 before routing to Collections at Stop 5501. Form 13441-A - Health Coverage Tax Credit (HCTC) Monthly Registration and Update Yes Route to AUSC Stop: 6098 – Entity Exception: Do not detach if Form 8885 is present. Form 13844 - Application for Reduced User Fee for Installment Agreements Yes Route to FSC (Fresno Submission Campus) ACSS Stop 76101. Form 14039 /Form 14039 (sp) - Identity Theft Affidavit For primary or secondary taxpayer For child or dependent of the taxpayer No Yes Edit FPC "8" when Form 14039 is attached, or edit FPC "9" when Form 14039 (SP) is attached. Note: This instruction also applies to the presence of police reports or other documentation that appears to notify the Service of Identity Theft. Refer entire return to the workleader. If a taxpayer cites IDT and/or attaches Form 14039, and/or police reports or other supporting documentation and claims that someone has claimed their child/dependent on another tax return, photocopy Form 14039, letter or statement. Attach all photocopied items (Form 14039 and documentation) to the return. Send the originalForm 14039 with the documentation to CII/ICT. Caution: Do not edit FPC "8" or FPC "9" for a dependent filing Form 14039 or Form 14039 (SP). Note: Route loose Form 14039 or Form 14039 (SP) to CII/ICT. Form 14095 - The Health Coverage Tax Credit (HCTC) Reimbursement Request Yes Route to AUSC Stop: 6098 – Entity Exception: Do not detach if Form 8885 is present. Form 14653 - Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures No Rebatch the entire package as Streamlined, if not in a Streamlined batch. Amended Form 14653 - Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures No Route the entire package to LB&I at MS AUSC - 4305. Form 14654 - Certification by U.S. Person Residing in the United States for Streamlined Domestic Offshore Procedures No Rebatch the entire package as Streamlined, if not in a Streamlined batch. Amended Form 14654 - Certification by U.S. Person Residing in the United States for Streamlined Domestic Offshore Procedures No Route the entire package to LB&I at MS AUSC - 4305. Form 15023 - Offshore Compliance Status Report (Letter 5935) Yes Route to LB&I if mis routed or detached, Stop 4301 AUSC. Another Return not listed in this guide (e.g., Form 1120-F) original or signed copy Exception: Form 1040-X or Form 1040 with Form 1040-NR or Form 1040-NR-EZ, Dual-Status or Article XXV. Yes Route to Receipt and Control. Identity Theft Documentation - This includes the following: Copies of police reports indicating identity theft Form 14039 or Form 14039 (SP), Identity Theft Affidavit Copies of Social Security cards, passports, driver's licenses, etc. Notation of "IDT" Notation of identity theft on Form 8948 or other attachment. No See Exhibit 3.21.3-1, Form 14039, or Form 14039 (SP) IRC 965 - Transition Tax Statement or similar statement/worksheet No Edit RPC "F" . For TY17, also edit CCC "P" and Action Code "300" . Note: For TY18 and later, do not edit RPC "F" when Form 965-A is attached without an entry on Schedule 2, line 20 unless an amount is present elsewhere (e.g., Schedule 1, line 8z or Schedule 3, line 13z). State/U.S. Territory/Country Returns (original or copy with taxpayer's original signature) Yes Route to Receipt and Control for transshipment to taxpayer's state, U.S. territory, or country.

# Form 1042-S Income Codes

Exhibit 3.21.3-2 Form 1042-S Income Codes Form 1042-S Box 1 Income Code Current Year Form 1042-S Box 1 Income Code Prior Year (If Different from Current Year) Description (Type) of Income Where Income is Reported 01 Interest Paid by U.S. Obligors - General Form 1040-NR, line 2b or Schedule NEC, line 2c 02 Interest Paid on Real Property Mortgages Form 1040-NR, line 2b or Schedule NEC, line 2a 03 Interest Paid to Controlling Foreign Corporations Form 1040-NR, line 2b or Schedule NEC, line 2c 04 Interest Paid by Foreign Corporations Form 1040-NR, line 2b or Schedule NEC, line 2b 05 Interest on Tax Free-Covenant Bonds No reporting required 06 Dividends Paid by United States Corporations - General Form 1040-NR, line 3b or Schedule NEC, line 1a 07 Dividends Qualifying for Direct Dividend Rate Form 1040-NR, line 3b or Schedule NEC, line 1b 08 Dividends Paid by Foreign Corporations Form 1040-NR, line 3b or Schedule NEC, line 1b 09 Capital Gains Form 1040-NR, line 7 or Schedule NEC, lines 9 and 18 10 Industrial Royalties Schedule 1, line 5 or Schedule NEC, line 3 11 Motion Picture or Television Copyright Royalties Schedule 1, line 5 or Schedule NEC, line 4 12 Other Royalties (e.g., Copyright, Software, Recording, Broadcasting, Endorsement Payments) Schedule 1, line 5 or Schedule NEC, line 5 13 TY15 and later Royalties paid on certain publicly offered securities Schedule 1, line 5 or Schedule NEC, line 5 14 13 (TY14 and prior) Real Property Income and Natural Resources Royalties Schedule 1, line 5 or Schedule NEC, line 6 15 14 (TY14 and prior) Pensions, Annuities, Alimony, and/or Insurance Premiums Form 1040-NR, line 5b or Schedule NEC, line 7 16 15 (TY14 and prior) Scholarships/Fellowship Grants Form 1040-NR, line 1k or Schedule 1, line 8r 17 16 (TY14 and prior) Compensation for Independent Personal Services Schedule 1, line 3 or 8z or Form 1040-NR, line 1k Exception: If the income is earned by a nonresident alien for services performed outside the U.S., the income is NOT taxable. Follow the taxpayer's intent if they do not claim the income and the address on the Form 1040-NR is outside of the U.S. 18 17 (TY14 and prior) Compensation for Dependent Personal Services Form 1040-NR, line 1h or 1k 19 18 (TY14 and prior) Compensation for Teaching Form 1040-NR, line 1h or 1k 20 19 (TY14 and prior) Compensation during Studying and Training Form 1040-NR, line 1h or 1k 21 (not valid after TY 2015) 21 (TY15 and prior) Gross Income - Capital Gain Dividend Page 1 Form 1040-NR, line 7 or Schedule NEC, line 9 or 18 22 Interest Paid on Deposit with a Foreign Branch of a Domestic Corporation or Partnership Form 1040-NR, line 2b or 1k 23 20 (TY14 and prior) Gross Income - Other Schedule 1, line 8z or Schedule NEC, line 12 24 Qualified Investment Entity (QIE) Distributions of Capital Gains Form 1040-NR, line 7 or Schedule NEC, lines 9 and 18 25 Trust Distributions Subject to IRC Section 1445) Schedule 1, line 8z or Schedule NEC, line 12 26 Unsevered Growing Crops and Timber Distributions by a Trust Subject to IRC Section 1445) Schedule 1, line 8z or Schedule NEC, line 12 27 Publicly Traded Partnership Distributions Subject to IRC Section 1446(a) Schedule 1, line 8z or Schedule NEC, line 12 28 Gambling Winnings Schedule NEC, line 10a or 11 (depending on country of residence) 29 Deposit Interest Schedule NEC, line 12 30 Original Issue Discount (OID) Schedule NEC, line 12 31 Short-Term Original Issue Discount (OID) Schedule NEC, line 9 32 Notional Principal Contract Income Schedule 1, line 8z or Schedule NEC, line 12 33 Substitute Payment - Interest Form 1040-NR, line 2b or Schedule NEC, line 2c 34 Substitute Payment - Dividends Form 1040-NR, line 3b or Schedule NEC, line 1a 35 Substitute Payment - Other Form 1040-NR, line 1z or Schedule NEC, line 12 36 Capital Gains Distributions Form 1040-NR, line 7 or Schedule NEC, lines 9 and 18 37 Return of capital Generally not reported 38 Eligible deferred compensation items subject to IRC Section 877A(d)(1) Form 1040-NR, line 1h 39 Distributions from a non-grantor trust subject to IRC Section 877A(f)(1) Schedule NEC, line 12 40 Other dividend equivalents under IRC Section 871 (m) Schedule 1, line 8z or Schedule NEC, line 1c 41 Guarantee of Indebtedness Schedule 1, line 8z or Schedule NEC, line 12 42 20 (TY11 and prior) Earnings as an Artist or Athlete without a central withholding agreement. Form 1040-NR, line 1h or 1k or Schedule 1, line 3 43 Earnings as an Artist or Athlete with a central withholding agreement Form 1040-NR, line 1h or 1k or Schedule 1, line 3 44 Specified Federal procurement payments Schedule 1, line 8z 50 Income previously reported under escrow procedure No reporting required 51 TY15 and later Note: In TY14, Income Code 51 was "Other Income" Interest paid on certain actively traded or publicly offered securities Form 1040-NR, line 2b or Schedule NEC, line 2 52 TY15 and later Dividends paid on certain actively traded or publicly offered securities Form 1040-NR, line 3b or Schedule NEC, line 1 53 TY15 and later Substitute payments - dividends from certain actively traded or publicly offered securities Form 1040-NR, line 3b or Schedule NEC, line 1 54 TY17 and later Note: In TY15 - TY16, Income Code 54 was "Other Income" . Substitute payments - interest from certain actively traded or publicly offered securities Form 1040-NR, line 2b or Schedule NEC, line 2 55 TY19 and later Taxable death benefits on life insurance contracts Schedule 1, line 8z or Schedule NEC, line 12 56 TY22 and later Dividend equivalents under IRC section 871(m) as a result of applying the combined transaction rules Form 1040-NR, line 3b or Schedule NEC, line 1c 57 TY22 and later Amount realized under IRC section 1446(f) Form 1040-NR, line 3b 58 TY23 and later Publicly traded partnership distributions - undetermined Schedule 1, line 8z

# Return Processing Codes (RPCs)

Exhibit 3.21.3-3 Return Processing Codes (RPCs) Code Explanation B International return Form 1040, Form 1040-A (TY17 and prior), or Form 1040-EZ (TY17 and prior), and EIC is not claimed. F Taxpayer has included IRC Section 965 claims and/or payments on the return. G All income on the return has been exempted by a valid tax treaty, and withholding is present, Scholarship, stipend, or fellowship grant reported, withholding claimed and neither wages, pensions, and annuities nor Social Security benefits reported, Gross amount of "scholarship/fellowship" grant has been moved to, or is on, Form 1040-NR, Schedule 1, line 8r, withholding is on Form 1040-NR, line 25d or 25g, and Form 1040-NR, line 1a is zero, blank, or dash, There is a significant amount on Form 4972, line 6 or 8, and withholding is present, or Indian Gaming Proceeds (IGP) is present on Form 1040-NR, Schedule 1, Line 8z, and withholding is present. J Form 1040-NR, line 23a is a significant entry (other than zero), and line 11a is blank, dash, zero, or edited to be blank. M Unemployment Compensation box checked on Form 8962 for TY21. P TY24 and subsequent, Form 1040-NR Schedule P, Foreign Partner's Interests in Certain Partnerships Transferred During Tax Year. with an entry for "total proceeds/amount realized from the transfer of partnership interest". S The amount of self-employment income claimed is $434 or more, Schedule SE is not attached, Schedule 2, line 4 does not have a significant entry, and the taxpayer resides in: Australia Austria Belgium Brazil Canada Chile (see Note below) Czech Republic Denmark Finland France Germany Greece Hungary (see Note below) Iceland Ireland Italy Japan Luxembourg Netherlands Norway Poland Portugal Slovak Republic/Slovakia Slovenia South Korea Spain Sweden Switzerland United Kingdom (including Great Britain, England, Northern Ireland, Scotland, and Wales) Uruguay Note: The U.S. - Chile income tax treaty generally entered into effect on January 1, 2024. Do treat Chile as an RPC "S" country for tax years beginning before 2024. Note: The U.S. - Hungary tax treaty was terminated in 2023 and ceased to have effect with respect to self-employment income after January 1, 2024. Do treat Hungary as an RPC "S" country for tax years beginning after 2023. U Form 8949 attached with code "Z" or "Y" in column (f). W TY25 and later, Clergy Filing Schedule SE. X Indicates LB&I screening of international returns for Revenue Protection. 1 All Dual-Status Returns.

# International Organizations and Foreign Governments

Exhibit 3.21.3-4 International Organizations and Foreign Governments International Organizations and Foreign Governments African Development Bank (Ex. Order No. 12403) African Development Fund (Ex. Order No. 11977) African Union (Ex. Order No. 13377) African Union Mission (Ex. Order No. 13444) Asian Development Bank (Ex. Order No. 11334) Border Environment Cooperation Commission (Ex. Order No. 12904) Caribbean Organization (Ex. Order No. 10983) Commission for Environmental Cooperation (Ex. Order No. 12904) Commission for Labor Cooperation (Ex. Order No. 12904) Commission for the Study of Alternatives to the Panama Canal (Ex. Order No. 12567) Council of Europe in Respect of the Group of States Against Corruption (GRECO) (Ex. Order No. 13240) Customs Cooperation Council (Ex. Order No. 11596) European Bank for Reconstruction and Development (Ex. Order No. 12766) European Central Bank (Ex. Order No. 13307) European Space Agency (formerly European Space Research Organization - ESRO) (Ex. Order No. 11318/11351/11760/12766) Food and Agriculture Organization (Ex. Order No. 9698) Global Fund to Fight AIDS, Tuberculosis and Malaria (Ex. Order No. 13395) Great Lakes Fishery Commission (Ex. Order No. 11059) Hong Kong Economic and Trade Offices (Ex. Order No. 13052) Inter-American Defense Board (Ex. Order No. 10228) Inter-American Development Bank (Ex. Order No. 10873/11019) Inter-American Institute of Agricultural Sciences (Ex. Order No. 9751) Inter-American Investment Corporation (Ex. Order No. 12567) Inter-American Statistical Institute (Ex. Order No. 9751) Inter-American Tropical Tuna Commission (Ex. Order No. 11059) Intergovernmental Maritime Consultative Organization (Ex. Order No. 10795) International Atomic Energy Agency (Ex. Order No. 10727) International Bank for Reconstruction and Development (Ex. Order No. 9751) International Boundary and Water Commission, United States and Mexico (Ex. Order No. 12467) International Centre for Settlement of Investment Disputes (Ex. Order No. 11966) International Civil Aviation Organization (Ex. Order No. 9863) International Civilian Office in Kosovo (Ex. Order No. 13568) International Coffee Organization (Ex. Order No. 11225) International Committee of the Red Cross (Ex. Order No. 12643) International Cotton Advisory Committee (Ex. Order No. 9911) International Cotton Institute (Ex. Order No. 11283) International Criminal Police Organization (INTERPOL) (limited privileges) (Ex. Order No. 12425/12971/13524) International Development Association (Ex. Order No. 11966) International Development Law Institute (Ex. Order No. 12842) International Fertilizer Development Center (Ex. Order No. 11977) International Finance Corporation (Ex. Order No. 10680) International Food Policy Research Institute (limited privileges) (Ex. Order No. 12359) International Fund for Agricultural Development (Ex. Order No. 12732) International Hydrographic Bureau (Ex. Order No. 10769) International Joint Commission - United States and Canada (Ex. Order No. 9972) International Labor Organization (Ex. Order No. 9698) International Maritime Satellite Organization (Ex. Order No. 12238) International Monetary Fund (Ex. Order No. 9751) International Pacific Halibut Commission (Ex. Order No. 11059) International Renewable Energy Agency (Ex. Order No. 13705) International Secretariat for Volunteer Service (Ex. Order No. 11363) International Telecommunication Union (Ex. Order No. 9863) International Telecommunications Satellite Organization (INTELSAT) (Ex. Order No. 11718/11966) International Union for Conversation of Nature and Natural Resources (Ex. Order No. 12986) International Wheat Advisory Committee (International Wheat Council) (Ex. Order No. 9823) Interparliamentary Union (Ex. Order No. 13097) Israel-United States Binational Industrial Research and Development Foundation (Ex. Order No. 12956) ITER International Fusion Energy Organization (Ex. Order No. 13451) Korean Peninsula Energy Development Organization (Ex. Order No. 12997) Multilateral Investment Guarantee Agency (Ex. Order No. 12647) Multinational Force and Observers (Ex. Order No. 12359) North American Development Bank (Ex. Order No. 12904) North Pacific Anadromous Fish Commission (Ex. Order No. 12895) North Pacific Marine Science Organization (Ex. Order No. 12894) Office of the High Representative in Bosnia and Herzegovina (Ex. Order No. 13568) Organization for European Economic Cooperation (now known as the Organization for Economic Cooperation and Development) (Ex. Order No. 10133) Organization for the Prohibition of Chemical Weapons (Ex. Order No. 13049) Organization of American States (includes Pan American Union) (Ex. Order No. 10533) Organization of Eastern Caribbean States (Ex. Order No. 12669) Pacific Salmon Commission (Ex. Order No. 12567) Pan American Health Organization (includes Pan American Sanitary Bureau) (Ex. Order No. 10864) Preparatory Commission of the International Atomic Energy Agency (Ex. Order No. 10727) Provisional Intergovernmental Committee for the Movement of Migrants from Europe (now known as the Intergovernmental Committee for European Migration) (Ex. Order No. 10335) South Pacific Commission (Ex. Order No. 10086) United International Bureau for the Protection of Intellectual Property (BIRPI) (Ex. Order No. 11484) United Nations (Ex. Order No. 9698) United Nations Educational, Scientific, and Cultural Organization (Ex. Order No. 9863) United Nations Industrial Development Organization (Ex. Order No. 12628) United States-Mexico Border Health Commission (Ex. Order No. 13367) Universal Postal Union (Ex. Order No. 10727) World Health Organization (Ex. Order No. 10025) World Intellectual Property Organization (Ex. Order No. 11866) World Meteorological Organization (Ex. Order No. 10676) World Organisation for Animal Health (Ex. Order No. 13759) World Tourism Organization (Ex. Order No. 12508) World Trade Organization (Ex. Order No. 13042)

# Province, State and Territory Abbreviations

Exhibit 3.21.3-5 Province, State and Territory Abbreviations 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 Abbreviation Acre AC Alagoas AL Amapa AP Amazonas AM Bahia BA Ceara CE Distrito Federal DF Espirito Santo ES Goias GO Maranhao MA Mato Grosso MT Mato Grosso do Sul MS Minas Gerais MG Para PA Paraiba PB Parana PR Pernambuco PE Piaui PI Rio de Janiero 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 Abbreviation Alberta AB British Columbia BC Manitoba MB New Brunswick NB Newfoundland and Labrador/Newfoundland NL Northwest Territories NT Nova Scotia NS Nunavut NU Ontario ON Prince Edward Island PE Quebec QC Saskatchewan SK Yukon YT Cuba Provincia 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 Provincia Abbreviation Agrigento AG Alessandria AL Ancona AN Aosta/Aoste AO Arezzo AR Ascoli Piceno AP Asti AT Avellino AV Bari BA Barletta-Andria-Trani BT Belluno BL Benevento BN Bergamo BG Biella BI Bologna BO Bolzano/Bozen BZ Brescia BS Brindisi BR Cagliari CA Caltanissetta CL Campobasso CB Carbonia-Iglesias CI Caserta CE Catania CT Catanzaro CZ Chieti CH Como CO Cosenza CS Cremona CR Crotone KR Cuneo CN Enna EN Fermo FM Ferrara FE Firenze/Florence FI Foggia FG Forli-Cesena FO Frosinone FR Genova/Genoa GE Gorizia GO Grosseto GR Imperia IM Isernia IS L'Aquila AQ La Spezia SP Latina LT Lecce LE Lecco LC Livorno LI Lodi LO Lucca LU Macerata MC Mantova/Mantua MN Massa-Carrara MS Matera MT Messina ME Milano/Milan MI Modena MO Monza and Brianza MB Napoli/Naples NA Novara NO Nuoro NU Ogliastra OG Olbia-Tempio OT Oristano OR Padova/Padua 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 Calabria RC Reggio Emilia RE Rieti RI Rimini RN Roma/Rome RM Rovigo RO Salerno SA Sassari SS Savona SV Siena SI Siracusa/Syracuse SR Sondrio SO Taranto TA Teramo TE Terni TR Torino/Turin TO Trapani TP Trento TN Treviso TV Trieste TS Udine UD Varese VA Venezia/Venice VE Verbano-Cusio-Ossola VB Vercelli VC Verona VR Vibo Valentia VV Vicenza VI Viterbo VT Mexico State Abbreviation Aguascalientes AGS Baja California Norte/Baja California 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 Abbreviation Drenthe DR Flevoland FLD Friesland FR Gelderland GLD Groningen GN Limburg LB North Brabant/Noord Brabant NB North Holland/Noord Holland NH Overijssel OV South Holland/Zuid Holland ZH Utrecht UT Zeeland SLD

# U.S. Territory ZIP Codes

Exhibit 3.21.3-6 U.S. Territory ZIP Codes American Samoa (AS) City ZIP Code Faga'itua 96799 Leone 96799 Olosega Manua' 96799 Pago Pago 96799 Federated States of Micronesia (FM) City ZIP Code Chuuk 96942 Kosrae 96944 Pohnpei 96941 Yap 96943 Guam (GU) City ZIP Code Agana 96910 Inarajan 96917 Merizo 96916 Tamuning 96931 Umatac 96915 Yona 96915 Marshall Islands (MH) City ZIP Code Ebeye 96970 Majuro 96960 Northern Mariana Islands (MP) City ZIP Code Capitol Hill 96950 Rota 96951 Saipan 96950 Tinian 96952 Palau (PW) City ZIP Code Koror 96940 Palau 96940 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 Barranquitas 00794 Bo Obrero 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 Ciales 00638 Cidra 00739 Coamo 00769 Comerio 00782 Corozal 00783 Coto Laurel 00780 Culebra 00775 Dorado 00646 Ensenada 00647 Fajardo 00738 Fernandez Juncos 00936 Florida 00650 Fort Buchanan 00934 Garrochales 00652 Guanica 00653 Guayama 00784 Guayanilla 00656 Guaynabo 00965 Gurabo 00778 Hatillo 00660 Hato Rey (STA) 00936 Hormigueros 00660 Humacao 00791 Isabela 00662 Jayuya 00664 Juana Diaz 00795 Juncos 00777 Lajas 00667 La Plata 00786 Lares 00669 Las Marias 00670 Las Piedras 00771 Levittown 00950 Loiza 00772 Loiza ST 00936 Luquillo 00773 Manati 00674 Maricao 00606 Maunabo 00707 Mayaguez 00680 Mercedita 00715 Minillas 00940 Moca 00676 Morovis 00687 Naguabo 00718 Naranjito 00719 Orocovis 00720 Palmer 00721 Patillas 00723 Penuelas 00624 Ponce 00731 Puerta de Tierra 00906 Puerta Real 00740 Punta Santiago 00741 Quebradillas 00678 Rincon 00677 Rio Grande 00745 Rio Blanco 00744 Rio Piedras 00927 Rosario 00636 Sabana Grande 00637 Sabana Hoyos 00688 Sabana Seca 00952 Saint Just 00978 Salinas 00751 San Antonio 00690 San German 00683 San Juan 00936 San Lorenzo 00754 San Sebastian 00685 Santa Isabel 00757 Santurce 00936 Toa Alta 00953 Toa Baja 00949 Trujillo Alto 00976 Utuado 00641 Vega Alta 00692 Vega Baja (box 1 - 9049) 00694 Vieques 00765 Villalba 00766 Yabucoa 00767 Yauco 00698 Virgin Islands (VI) City ZIP Code Charlotte Amalie 00802 Christiansted 00820 Cruz Bay 00830 Downtown 00840 Frederiksted 00840 Kingshill 00850 Saint Croix 00820 Saint John 00830 Saint Thomas 00805 Sunny Isle 00850 Veterans Annex 00820

# Country Codes

Exhibit 3.21.3-7 Country Codes Foreign Country Country Code Afghanistan AF Aland Islands AX Albania AL Algeria AG Andorra AN Angola AO Anguilla AV Antarctic Lands FS Antarctica AY Antigua AC Antigua and Barbuda AC Argentina AR Armenia AM Aruba AA Ashmore Island AT Ashmore and Cartier Islands AT Australia AS Austria AU Azerbaijan AJ Bahamas BF Bahrain BA Baker Island FQ Balearic Islands (Spain) SP Bangladesh BG Barbados BB Barbuda AC Bassas da India XX Belarus BO Belgium BE Belize BH Benin BN Bermuda BD Bhutan BT Bolivia BL Bonaire, Sint Eustatius and Saba BQ Bosnia-Herzegovina BK Botswana BC Bouvet Island BV Brazil BR British Indian Ocean Territory IO British Virgin Islands VI Brunei BX Bulgaria BU Burkina Faso (Upper Volta) UV Burma/Myanmar BM Burundi BY Caicos Islands TK Cambodia CB Cameroon CM Canada CA Cape Verde/Cabo Verde CV Cartier Island AT Cayman Islands CJ Central African Republic CT Chad CD Chile CI China CH Christmas Island KT Clipperton Islands IP Cocos Island (Keeling Island) CK Colombia CO Comoros CN Congo, Republic of (Brazzaville) CF Congo, Democratic Republic of (Kinshasa) CG Cook Islands CW Coral Sea Islands Territory CR Costa Rica CS Cote d'Ivoire (Ivory Coast) IV Croatia HR Cuba CU Curacao (Netherland Antillies) UC Cyprus CY Czech Republic EZ Dem. People's Rep. of Korea (North) KN Dem. Rep. of Congo (Kinshasa) CG Denmark DA Djibouti DJ Dominica DO Dominican Republic DR East Timor TT Ecuador EC Egypt EG El Salvador ES Eleuthera Island (Bahamas) BF England UK Equatorial Guinea EK Eritrea ER Estonia EN Eswatini (formerly Swaziland) WZ Ethiopia ET Europa Island EU Falkland Islands FK Faroe Islands FO Fiji FJ Finland FI France FR French Guiana XX French Polynesia FP French Southern and Antarctic Lands FS Futuna WF Gabon GB Gambia GA Georgia GG Germany GM Ghana GH Gibraltar GI Glorioso Islands GO Great Britain UK Greece GR Greenland GL Grenada GJ Grenadines VC Guadeloupe GP Guam GQ Guatemala GT Guernsey GK Guinea GV Guinea-Bissau PU Guyana GY Haiti HA Heard Island and McDonald Island HM Holy See VT Honduras HO Hong Kong HK Howland Island HQ Hungary HU Iceland IC India IN Indonesia ID Iran IR Iraq IZ Ireland EI Isle of Man IM Israel IS Italy IT Ivory Coast IV Jamaica JM Jan Mayen JN Japan JA Jarvis Island DQ Jersey JE Johnston Atoll JQ Jordan JO Juan de Nova Island JU Kazakhstan KZ Kenya KE Kingman Reef KQ Kiribati KR Korea KS Korea (North) KN Korea (South) KS Kosovo KV Kurile Islands (Russia) RS Kuwait KU Kyrgyzstan KG Laos LA Latvia LG Lebanon LE Lesotho LT Liberia LI Libya LY Liechtenstein LS Lithuania LH Luxembourg LU Macau/Macao MC Macedonia/North Macedonia MK Madagascar MA Malawi MI Malaysia MY Maldives MV Mali ML Malta MT Mariana Island CQ Marshall Islands RM Martinique MB Mauritania MR Mauritius MP Mayotte MF McDonald Island HM Mexico MX Micronesia FM Midway Islands MQ Miquelon SB Moldova MD Monaco MN Mongolia MG Montenegro MJ Montserrat MH Morocco MO Mozambique MZ Myanmar/Burma BM Namibia WA Nauru NR Navassa Island BQ Nepal NP Netherlands NL Nevis SC New Caledonia NC New Zealand NZ Nicaragua NU Niger NG Nigeria NI Niue NE Norfolk Island NF North Korea KN North Macedonia/Macedonia MK Northern Ireland UK Norway NO Oman MU Other (country not identified elsewhere) XX Pakistan PK Palmyra Atoll LQ Panama PM Papua New Guinea PP Paracel Islands PF Paraguay PA Peru PE Philippines RP Pitcairn Islands PC Poland PL Portugal PO Principe TP Qatar QA Redonda (British Virgin Islands) VI Reunion RE Romania RO Russia (Russian Federation) RS Rwanda RW Ryukyu Islands (Japan) JA S Georgia Island SX S Georgia Island and S Sandwich Island SX S Sandwich Island SX Samoa WS San Marino SM Sao Tome and Principe TP Sarawak MY Saudi Arabia SA Scotland UK Senegal SG Serbia RI Seychelles SE Sierra Leone SL Singapore SN Sint Maarten (Dutch part) (not St. Martin-French part) SD Slovak Republic (Slovakia) LO Slovenia SI Solomon Islands BP Somalia SO South Africa SF South Georgia Island SX South Georgia Island and South Sandwich Island SX South Korea KS South Sandwich Island SX South Sudan SS Spain SP Spratly Islands PG Sri Lanka CE (St) Saint Barthelemy TB St. Helena SH St. Kitts and Nevis SC St. Lucia ST St. Martin (French part) (not Sint Maarten-Dutch part) RN St. Miquelon SB St. Pierre SB St. Pierre and Miquelon SB St. Vincent and Grenadines VC Sudan SU Suriname NS Svalbard SV Swaziland (now Eswatini) WZ Sweden SW Switzerland SZ Syria SY Taiwan TW Tajikistan TI Tanzania TZ Thailand TH The Bahamas BF The Gambia GA The Netherlands NL Timor-Leste TT Togo TO Tokelau TL Tonga TN Tortola VI Trinidad and Tobago TD Tromelin Island TE Tunisia TS Turkey/Turkiye TU Turkmenistan TX Turks and Caicos Islands TK Tuvalu TV Uganda UG Ukraine UP United Arab Emirates AE United Kingdom UK Uruguay UY Uzbekistan UZ Vanuatu NH Vatican City VT Venezuela VE Vietnam VM Wake Island WQ Wales UK Wallis and Futuna WF Windward Island VC Yemen YM Zambia ZA Zimbabwe ZI All Other Countries XX

# Types of Non-Immigrant Visa Issued to Aliens Admitted to the U.S.

Exhibit 3.21.3-8 Types of Non-Immigrant Visa Issued to Aliens Admitted to the U.S. Visa Type Description Residency Status For Income Tax Purposes A "Diplomatic" Visa Nonresident Alien Note: An alien (not a U.S. citizen) is considered a nonresident alien unless they meet the "green card test" or substantial presence test. For details on tests, see IRM 3.21.3.3.2. B "Visitors Visa" B - 1: Business B - 2: Tourism; Medical Treatment Cannot work as employee for United States or foreign employer, but can be independent contractor Nonresident or Resident Alien based on substantial presence C In Transit - Must depart from United States within 10-20 days from arrival Nonresident Alien (unless meets substantial presence based on number of days in U.S. during tax year) D Ship crew members Nonresident Alien Note: An alien (not a U.S. citizen) is considered a nonresident alien unless they meet the "green card test" or substantial presence test. For details on tests see IRM 3.21.3.3.2 E E - 1: Treaty Trader E - 2: Treaty Investor Status depends on length of stay in the U.S. (substantial presence) F Foreign Student already accepted by college or university for full course of study. Note: Generally, unable to accept employment Nonresident Alien Note: An alien (not a U.S. citizen) is considered a nonresident alien unless they meet the "green card test" or substantial presence test. For details on tests see IRM 3.21.3.3.2 G Works for foreign government or International Organization (e.g., United Nations) Nonresident Alien Note: An alien (not a U.S. citizen) is considered a nonresident alien unless they meet the "green card test" or substantial presence test. For details on tests see IRM 3.21.3.3.2 H Temporary Worker - Visa petition filed by U.S. employer must be approved Note: Foreign agricultural workers temporarily admitted to the U.S. on H-2A visas are exempt from U.S. social security and Medicare taxes (SE tax). The wages earned are subject to U.S. income tax; however, H-2A workers are exempt from federal income tax withholding requirements. Status depends on length of stay in the U.S. (substantial presence) I Foreign media representative - Journalist Status depends on length of stay in the U.S. (substantial presence) J Exchange Visitor (USA sponsored) - Foreign Professor or Teacher Note: Generally, length of stay in the United States is 2 years Nonresident Alien Note: An alien (not a U.S. citizen) is considered a nonresident alien unless they meet the "green card test" or substantial presence test. For details on tests see IRM 3.21.3.3.2. K Fiancee of U.S. citizen Note: Marriage must take place within 90 days of arrival in U.S. Nonresident Alien if not going to reside in U.S. with spouse Resident Alien if going to reside permanently in U.S. (substantial presence) L Intra company transferee Status depends on length of stay in the U.S. (substantial presence) M Student in vocational or other non-academic school Nonresident Alien Note: An alien (not a U.S. citizen) is considered a nonresident alien unless they meet the "green card test" or substantial presence test. For details on tests see IRM 3.21.3.3.2 Q Treated as engaged in trade or business in the United States Nonresident Alien Note: An alien (not a U.S. citizen) is considered a nonresident alien unless they meet the "green card test" ; or substantial presence test. For details on tests see IRM 3.21.3.3.2 TN Both NAFTA (effective on or before June 30, 2020) and its successor, the United States-Mexico-Canada Agreement (USMCA) (effective July 1, 2020) allow temporary entry of Canadian and Mexican professionals in qualifying occupations to work. Nonresident Alien Note: An alien (not a U.S. citizen) is considered a nonresident alien unless they meet the "green card test" or substantial presence test. For details on tests see IRM 3.21.3.3.2

# Tax Rates on Income Other Than Personal Service Income Under Chapter 3, Internal Revenue Code, and Income Tax Treaties

Exhibit 3.21.3-9 Tax Rates on Income Other Than Personal Service Income Under Chapter 3, Internal Revenue Code, and Income Tax Treaties The link below lists the income tax rates on income other than personal service income. The income code numbers shown in this table are the same as the income codes on TY25 Form 1042-S. Use this table and the footnote references to verify tax treaty claims. Table 1. Tax Rates on Income Other Than Personal Service Income Under Chapter 3, Internal Revenue Code, and Income Tax Treaties. Note: Those countries to which the U.S. - U.S.S.R. income tax treaty still applies: Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Uzbekistan Note: The U.S.-Chile income tax treaty entered into effect with respect to taxes withheld at source paid or credited on or after February 1, 2024, and for other taxes for taxable periods beginning on or after January 1, 2024. In general, the rate on interest subject to withholding under the treaty is 15% through 2028, and thereafter, 10%; the rate on dividends, 15% on portfolio investments and 5% on dividends paid to a resident of Chile that is the beneficial owner of the dividend and that owns directly at least 10% of the voting stock of the company paying the dividend; and with respect to royalties, 2% for the right to use industrial and certain other equipment, and 10% for royalties paid with respect to other intangible property. Note: The U.S.-Hungary tax treaty was terminated in 2023 and ceased to have effect with respect to U.S. withholding tax after January 1, 2024, and for other taxes for taxable periods beginning after that date. Note: The U.S.-Russia tax treaty is suspended for these taxes withheld at source and in respect of other taxes as of August 16, 2024.

# Compensation for Personal Services Performed in United States Exempt from U.S. Income Tax Under Income Tax Treaties

Exhibit 3.21.3-10 Compensation for Personal Services Performed in United States Exempt from U.S. Income Tax Under Income Tax Treaties The link below is for Compensation for Personal Services Performed in United States Exempt from U.S. Income Tax Under Income Tax Treaties is used to verify tax treaty claims exempting personal services compensation. Personal services income that may be fully or partly exempt from U.S. income tax. Use the link and the footnote references to verify tax treaty claims. Compensation for Personal Services Performed in United States Exempt from U.S. Income Tax Under Income Tax Treaties. Note: Those countries to which the U.S. - U.S.S.R. income tax treaty still applies: Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Uzbekistan Note: The U.S.-Chile income tax treaty entered into effect with respect to taxes withheld at source paid or credited on or after February 1, 2024, and for other taxes for taxable periods beginning on or after January 1, 2024. Independent personal services are exempt from U.S. tax if a Chilean resident has a fixed base available to him in the United States and the income is attributable to that fixed base, or if the Chilean resident is present in the United States for more than 183 days in any twelve-month period commencing or ending in the taxable year concerned, and to the extent that the income is derived from those activities. Article 14. Dependent personal services are generally exempt from U.S. tax unless the Chilean resident is present in the United States for more than 183 days in any twelve-month period commencing or ending in the taxable year concerned, the remuneration is paid by a non-U.S. employer, and the remuneration is not borne by a permanent establishment that the employer has in the United States. Article 15. Directors' fees of a Chilean resident paid by a company that is a United States resident that arise in the United States are not exempt unless they are paid in respect of a attendance at meetings held in Chile. Article 16. Note: The U.S.-Hungary tax treaty was terminated in 2023 and ceased to have effect with respect to U.S. withholding tax after January 1, 2024, and for other taxes for taxable periods beginning after that date. Note: The U.S.-Russia tax treaty is suspended for these taxes withheld at source and in respect of other taxes as of August 16, 2024.

# Form 8288-A and Form 13698

Exhibit 3.21.3-11 Form 8288-A and Form 13698 This is a Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons and a Form 13698, International Credit(s) Verification Slip.Form 8288-AStep 1 - Verify date in Box 1. Date of issue can only be during the tax period of the return. If date is different than the tax period on the return, delete Form 8288-A withholding from the return. Refer to IRM instructions at 3.21.3.84.13.4, X the entry where reported on Form 1040. Refer to IRM instructions at 3.21.3.15.1.28.Step 2 - Verify the amount in Box 3 and make sure the amount is reported on one of the following: Schedule D column (d); Schedule E (page 2, part II); Form 4797 column (d); Form 4684 Section B. Dummying or correspondence maybe required. Refer to IRM instructions at 3.21.3.84.8.14.Step 3 - All Withholding claimed in Box 4 must be verified through INTLWebAPPS.Form 13698Numbered Return: Attach verification slip (Form 13698), notate verify Form 8288-A Credit and edit Action Code 420.Unnumbered Return: Attach verification slip (Form 13698), notate verify Form 8288-A Credit and place entire return in designated bucket.The following fields are on Form 13698:1 - TIN2 - MFT3 - Tax Period4 - Amount of credit5 - Verified by6 - Date7 - Total Credits8 - Comments Please click here for the text description of the image.

# Prior Year Treaty table

Exhibit 3.21.3-12 Prior Year Treaty table Exhibit3.21.3-12Prior Year Treaty table Compensation for Personal Services Performed in United States Exempt from U.S. Income Tax Under Income Tax Treaties Country Purpose Maximum Presence in the U.S. Required Employer or Payer Maximum Amount of Compensation Treaty Article Austria TY 1998 - Prior Scholarship or Fellowship Grant No Limit Any U.S. or foreign resident No limit XIII(3) Austria TY 1998 - Prior Independent Personal Service 183 days Austrian resident contractor No limit X Austria TY 1998 - Prior Independent Personal Service 183 days Other foreign or U.S. contractor $3,000 X Austria TY 1998 - Prior Dependent Personal Service 183 days Austrian resident No limit X Austria TY 1998 - Prior Dependent Personal Service 183 days Other foreign or U.S. resident $3,000 X Austria TY 1998 - Prior Teaching 2 years U.S. educational institution No limit XII Austria TY 1998 - Prior Studying and Training: Remittances or allowances No limit Any foreign resident No limit XIII(1) and (2) Austria TY 1998 - Prior Studying and Training: Compensation while gaining experience 1 year Austrian resident $10,000 XIII(4) Bangladesh TY 2006 and prior N/A N/A N/A N/A N/A Belgium TY 2007 - Prior Scholarship or Fellowship Grant 5 years Any U.S. or foreign resident No limit 21(1) Belgium TY 2007 - Prior Independent personal service 182 days Any contractor No limit 14(2)(a)(b) Belgium TY 2007 - Prior Public Entertainment 90 days Any contractor $3,000 14(2)(c) Belgium TY 2007 - Prior Dependent personal service 182 days Belgium resident No limit 15 Belgium TY 2007 - Prior Teaching 2 years U.S. educational institution No limit 20 Belgium TY 2007 - Prior Studying and Training: Remittances or allowances 5 years Any foreign resident No limit 21(1) Belgium TY 2007 - Prior Studying and Training: Compensation during training 12 consecutive months Belgium resident $5,000 21(2)(b) Belgium TY 2007 - Prior Studying and Training: Compensation during training 5 years Other foreign or U.S. resident $2,000 p.a. 21(1) Belgium TY 2007 - Prior Studying and Training: Compensation while gaining experience 12 consecutive months Belgium resident $5,000 21(2)(a) Belgium TY 2007 - Prior Studying and Training: Compensation under U.S. Govt Program 1 year U.S. government or its contractor $10,000 21(3) Bulgaria TY 2008 - Prior N/A N/A N/A N/A N/A Canada TY 2003 - Prior Independent personal service No limit Any contractor No limit XIV Canada TY 2003 - Prior Dependent personal service No limit Any U.S. or foreign resident $10,000 XV Canada TY 2003 - Prior Dependent personal service 183 days Any foreign resident No limit XV Canada TY 2003 - Prior Dependent personal service No limit Any foreign resident No limit XX Canada TY 2008 - 2004 Independent personal service No limit Any contractor No limit XIV Canada TY 2008 - 2004 Public Entertainment No limit Any contractor $15,000 p.a. XVI Canada TY 2008 - 2004 Dependent personal service No limit Any U.S. or foreign resident $10,000 XV Canada TY 2008 - 2004 Dependent personal service 183 days Any foreign resident No limit XV Canada TY 2008 - 2004 Studying and Training: Remittances or allowances No limit Any foreign resident No limit XX Denmark TY 2000 - Prior Independent personal service 180 days Danish resident contractor No limit XI Denmark TY 2000 - Prior Independent personal service 90 days Other foreign or U.S. contractor $3,000 XI Denmark TY 2000 - Prior Dependent personal service 180 days Danish resident No limit XI Denmark TY 2000 - Prior Dependent personal service 90 days Other foreign or U.S. resident $3,000 XI Denmark TY 2000 - Prior Teaching 2 years U.S. educational institution No limit XIV Denmark TY 2000 - Prior Studying and Training: Remittances or allowances No limit Any foreign resident No limit XIII Estonia TY 1999 - Prior N/A N/A N/A N/A N/A Germany TY 2007 and prior Scholarship or Fellowship Grant No limit Any U.S. or foreign resident No limit 20(3) Germany TY 2007 and prior Dependent personal service 183 days Any foreign resident No limit 15 Germany TY 2007 and prior Public Entertainment No limit Any U.S. or foreign resident $20,000 17 Germany TY 2007 and prior Teaching 2 years U.S. educational or research institution No limit 20(1) Germany TY 2007 and prior Studying and Training: Remittances or allowances No limit Any foreign resident No limit 20(2) Germany TY 2007 and prior Studying and Training: Compensation during study or training 4 years Any foreign resident $5,000 20(4) Germany TY 2007 and prior Studying and Training: Compensation while gaining experience 1 year Any U.S. or foreign resident $10,000 20(5) Germany TY 2008 and prior Scholarship or fellowship grant No limit Any U.S. or foreign resident No limit 21(1) Germany TY 2008 and prior Independent personal service No limit Any contractor No limit 14 Germany TY 2008 and prior Independent personal service: Public entertainment No limit Any contractor $20,000 p.a. 17 Germany TY 2008 and prior Dependent personal service 183 days Any foreign resident No limit 15 Germany TY 2008 and prior Dependent personal service: Public entertainment 183 days Any foreign resident $20,000 p.a. 17 Germany TY 2008 and prior Teaching 2 years U.S. educational or research institution No limit 20(1) Germany TY 2008 and prior Studying and Training: Remittances or allowances No limit Any foreign resident No limit 20(2) Germany TY 2008 and prior Studying and Training: Compensation during study or training 4 years Any U.S. or foreign resident $5,000 p.a. 20(4) Germany TY 2008 and prior Studying and Training: Compensation while gaining experience 1 year Any German enterprise or foreign organization or institution $10,000 20(5) Iceland TY 2008 - Prior N/A N/A N/A N/A N/A Ireland TY1998 - Prior Independent personal service 183 days Irish resident contractor No limit XI Ireland TY1998 - Prior Dependent personal service 183 days Irish resident No limit XI Ireland TY1998 - Prior Teaching 2 years U.S. educational institution No limit XVIII Ireland TY1998 - Prior Studying and Training: Remittances or allowances No limit Irish resident No limit XIX Italy TY 2010 - Prior Independent personal service 183 days Any contractor No limit 14 Italy TY 2010 - Prior Independent personal service: Public entertainment 90 days Any contractor $12,000 p.a. 17(1) Italy TY 2010 - Prior Dependent personal service 183 days Any foreign resident No limit 15 Italy TY 2010 - Prior Independent personal service: Public entertainment 90 days Any U.S. or foreign resident $12,000 p.a. 17(1) Italy TY 2010 - Prior Teaching 2 years U.S. educational institution No limit 20 Italy TY 2010 - Prior Studying and Training: Remittances or allowances No limit Any foreign resident No limit 21 Japan TY 2003 - Prior Scholarship or Fellowship Grant 5 years Any U.S. or foreign resident No limit 20(1) Japan TY 2003 - Prior Independent personal service 183 days Any contractor No limit 17 Japan TY 2003 - Prior Public Entertainment 90 days Any contractor $3,000 17 Japan TY 2003 - Prior Dependent personal service 183 days Japanese resident No limit 18 Japan TY 2003 - Prior Teaching 2 years U.S. educational institution No limit 19 Japan TY 2003 - Prior Studying and Training: Remittances or allowances 5 years Any foreign resident No limit 20(1) Japan TY 2003 - Prior Studying and Training: Compensation during training 5 years U.S. or any foreign resident $2,000 20(1) Japan TY 2003 - Prior Studying and Training: Compensation while gaining experience 12 consecutive months Japanese resident $5,000 20(2) Japan TY 2003 - Prior Studying and Training: Compensation under U.S. government program 1 year U.S. government or its contractor $10,000 20(3) Latvia TY 1999 - Prior N/A N/A N/A N/A N/A Lithuania TY 1999 - Prior N/A N/A N/A N/A N/A Luxembourg TY 2003 - Prior Scholarship or Fellowship Grant No limit Any foreign resident No limit XIV(1) Luxembourg TY 2003 - Prior Independent personal service 180 days Luxembourg resident No limit XII Luxembourg TY 2003 - Prior Independent personal service 180 days Any U.S. or foreign resident $3,000 XII Luxembourg TY 2003 - Prior Dependent personal service 180 days Luxembourg resident No limit XII Luxembourg TY 2003 - Prior Dependent personal service 180 days Any U.S. or foreign resident $3,000 XII Luxembourg TY 2003 - Prior Teaching 2 years U.S. educational institution No limit XIII Luxembourg TY 2003 - Prior Studying and Training: Remittances or allowances No limit Any foreign resident No limit XIV(1) Luxembourg TY 2003 - Prior Studying and Training: Compensation during training 1 year Any foreign resident No limit XIV(1) Luxembourg TY 2003 - Prior Studying and Training: Compensation while gaining experience 1 year Any foreign resident $5,000 XIV(2) Luxembourg TY 2003 - Prior Studying and Training: Compensation under U.S. government program 1 year U.S. government, its contractor, or a foreign resident $10,000 XIV(3) Malta TY 2010 - Prior N/A N/A N/A N/A N/A New Zealand TY 2010 - Prior Independent personal service 183 days Any contractor No limit 14 New Zealand TY 2010 - Prior Independent personal service: Public entertainment 183 days Any contractor $10,000 17 New Zealand TY 2010 - Prior Dependent personal service 183 days Any foreign resident No limit 15 New Zealand TY 2010 - Prior Dependent personal service: Public entertainment 183 days Any foreign resident $10,000 17 New Zealand TY 2010 - Prior Studying and Training: Remittances or allowances No limit Any foreign resident No limit 20 Slovenia TY 2003 - Prior N/A N/A N/A N/A N/A South Africa TY 1998 - Prior N/A N/A N/A N/A N/A Sri Lanka TY 2006 - Prior N/A N/A N/A N/A N/A Switzerland TY 1998 - Prior Independent personal service 183 days Swiss resident contractor No limit X Switzerland TY 1998 - Prior Independent personal service 183 days Other foreign or U.S. contractor $10,000 X Switzerland TY 1998 - Prior Dependent personal service 183 days Swiss resident No limit X Switzerland TY 1998 - Prior Dependent personal service 183 days Other foreign or U.S. contractor $10,000 X Switzerland TY 1998 - Prior Teaching 2 years U.S. educational institution No limit XII Switzerland TY 1998 - Prior Studying and Training: Remittances or allowances No limit Any foreign resident No limit XIII Thailand TY 1998 - Prior N/A N/A N/A N/A N/A Turkey TY 1998 - Prior N/A N/A N/A N/A N/A Ukraine TY 2000 - Prior N/A N/A N/A N/A N/A United Kingdom TY 2003 - Prior Independent personal service 183 days Any contractor No limit 14 United Kingdom TY 2003 - Prior Dependent personal service 183 days Any foreign resident No limit 15 United Kingdom TY 2003 - Prior Teaching 2 years U.S. education institution No limit 20 United Kingdom TY 2003 - Prior Studying and Training: Remittances or allowances No limit Any foreign resident No limit 21 Venezuela TY 1999 - Prior N/A N/A N/A N/A N/A

# Examples of Resident Alien Cards (Green Cards) and Visas

Exhibit 3.21.3-13 Examples of Resident Alien Cards (Green Cards) and Visas Alien Registration Receipt CardsThis exhibit shows three examples of Form I-551 Permanent Resident cards, current version, 2004 version and 1997 version. Please click here for the text description of the image. Resident Alien CardsThis exhibit shows two examples of Form I-551 Resident Alien cards, 1989/1992 version and 1977 version. Please click here for the text description of the image.

# Exempt Countries for Government Service Employees

Exhibit 3.21.3-14 Exempt Countries for Government Service Employees Use the table below to determine the validity of Exempt Countries for Government Service Employees Mission Article Government salary exempt from US tax? Armenia (USSR) VI(1)(a) Yes, if citizen of paying state Australia 19 Yes, if citizen of paying state Austria 19 Yes, if citizen of paying state Azerbaijan (USSR) VI(1)(a) Yes, if citizen of paying state Bangladesh 20 Yes Barbados 19 Yes, if citizen of paying state Belarus (USSR) VI(1)(a) Yes, if citizen of paying state Belgium 18 Yes Bulgaria 18 Yes Canada XIX Yes, if citizen of paying state Chile (see note below) 19(1) Yes China 18 Yes Cyprus 22 Yes, if citizen of paying state Czech Republic 20 Yes, if citizen of paying state Denmark 19 Yes Egypt 21 Yes, if citizen of paying state Estonia 19 Yes Finland 19 Yes France 19 Yes Georgia (USSR) VI(1)(a) Yes, if citizen of paying state Germany 19 Yes Greece XI Yes Hungary (see note below) 16 Yes Iceland 18 Yes India 19 Yes Indonesia 18 Yes Ireland 19 Yes Israel 22 Yes, if citizen of paying state Italy 19 Yes Jamaica 20 Yes Japan 18 Yes Kazakhstan 17 Yes Korea 22 Yes, if citizen of paying state Kyrgyzstan (USSR) VI(1)(a) Yes, if citizen of paying state Latvia 19 Yes Lithuania 19 Yes Luxembourg 20 Yes Malta 19 Yes Mexico 20 Yes Moldova (USSR) VI(1)(a) Yes, if citizen of paying state Morocco 17 Yes, if citizen of paying state Netherlands 20 Yes New Zealand 19 Yes Norway 17 Yes, if citizen of paying state Pakistan IX Yes, if citizen of paying state Philippines 20 Yes, if citizen of paying state Poland 19 Yes, if citizen of paying state Portugal 21 Yes Romania 18 Yes, if citizen of paying state Russia (Russian Federation) (see note below) 16 Yes Slovak Republic (Slovakia) 20 Yes, if citizen of paying state Slovenia 19 Yes South Africa 19 Yes Spain 21 Yes Sri Lanka 20 Yes, if citizen of paying state Sweden 20 Yes, Switzerland 19 Yes, Tajikistan (USSR) VI(1)(a) Yes, if citizen of paying state Thailand 21 Yes Trinidad and Tobago 20 Yes, if citizen of paying state Tunisia 19 Yes, if citizen of paying state Turkey 19 Yes Turkmenistan (USSR) VI(1)(a) Yes, if citizen of paying state Ukraine 18 Yes United Kingdom 19 Yes Uzbekistan (USSR) VI(1)(a) Yes, if citizen of paying state Venezuela 20 Yes Note: The U.S.-Chile income tax treaty entered into effect with respect to taxes withheld at source paid or credited on or after February 1, 2024, and for other taxes for taxable periods beginning on or after January 1, 2024. Note: The U.S.-Hungary tax treaty was terminated in 2023 and ceased to have effect with respect to U.S. withholding tax after January 1, 2024, and for other taxes for taxable periods beginning after that date. Note: The U.S.-Russia tax treaty is suspended for taxes withheld at source and in respect of other taxes as of August 16, 2024.

# Correspondence Action Sheet Instructions Form 13900

Exhibit 3.21.3-15 Correspondence Action Sheet Instructions Form 13900 Correspondence Action Sheet Instructions for Form 13900 used to prepare Letter 4087C:A - Prior Year returns only – Edit the tax year of the return in YYYY format.B - To correspond for a missing SSN for a dependent, select box G.C - For scholarship income exclusion support, select box I.D - If withholding support is missing, select box L. Multiple line entries are acceptable.E - If a green card and/or signed declaration are missing, select box N.F - If Form 2555 is missing, select box O.G - For boxes Y through 3, only one Form or Schedule can be selected per paragraph. Information must be filled in all the way across. Fill in all blanks and circle the F/S (Form/Schedule) that applies.H - When selecting a paragraph that contains items separated by a slash (/) after a field number, such as Schedule SE/Form 4137/Form 5329/Form 8919, circle the choice that applies. See example for box 8.I - When corresponding for Form 8962, also select box s to correspond for Form 1095-A if not attached.J - Only approved fill-ins can be used when selecting box #. An open paragraph (fill-in) must always be approved by the National Headquarters Analyst.K - Always select the appropriate fax paragraph from boxes & through >.Edit Action Code 215 on the return. All amounts on Form 13900 must be edited in dollars and cents. Bracket negative amounts. Please click here for the text description of the image. Page 1 of Form 13900 showing the proper way to fill in the form based on the instructions.Item A is beside field (04) Tax Period.Item B is in the left margin beside paragraph G.Item C is in the left margin beside paragraph I.Item D is in the left margin beside paragraph L. Paragraph L has been marked with a red x to select it. Fill-in 05 has been edited in red with 25a, 25g. Fill-in 06 has been edited in red with 1040-NR.Item E is in the left margin beside paragraph N.Item F is in the left margin beside paragraph O.Item G is in the left margin, and a bracket has been drawn to include all paragraphs from Y through 3.The paragraph fill-ins within Item G are completed as follows:Paragraph Y: Form (13) is marked with a red x. 8863 is marked with a red x. Amt (14) has been edited in red with 1500.00. Line (15) has been edited in red with 29 for the line number. (16) F/S has been edited in red with 1040, and the F has been circled.Paragraph 1: Schedule (25) is marked with a red x. A blank space has been marked with a red x, and the blank has been edited in red with F. Amt (26) has been edited in red with 1060.53. Line (27) has been edited in red with 6 for the line number. () F/S has been edited in red with 1, and the S has been circled.Paragraph 2: Schedule (29) is marked with a red x. A blank space has been marked with a red x, and the blank has been edited in red with 8812. Amt (30) has been edited in red with 3000.00. Line (31) has been edited in red with 28 for the line number. (32) F/S has been edited in red with 1040, and the F has been circled.Item H is in the left margin beside paragraph 8. Paragraph 8 has been marked with a red x to select it. Beside field (43), Schedule SE has been circled in red. $ (44) has been edited in red with 700.00. Line (45) has been edited in red with 4 for the line number. (46) F/S has been edited in red with 2, and the S has been circled.A text box beneath the sheet states: Edit Action Code 215 on the return after preparing F13900. Please click here for the text description of the image. Page 2 of Form 13900 showing the proper way to fill in the form based on the instructions used to prepare Letter 4087C:Item I is in the left margin beside paragraph s.Item J is in the left margin beside paragraph #.Item K is in the left margin, and a bracket has been drawn to include all paragraphs from & through >.A text box beneath the sheet states: Edit Action Code 215 on the return after preparing F13900. Please click here for the text description of the image.

# Correspondence Action Sheet Instructions Form 13975

Exhibit 3.21.3-16 Correspondence Action Sheet Instructions Form 13975 Correspondence Action Sheet Instructions for Form 13975.A - Select the box to indicate the return type.B - Prior Year returns only – Edit the tax year of the return in YYYY format.C - CY: Select box D when corresponding for missing supporting documentation of Part II, line 13a entry when ACTC is claimed. PY: Select box E when corresponding for missing supporting documentation of Part II, line 2 entry when ACTC is claimed. (Exception: for TY21, do not correspond.)D - Select box H when corresponding for missing supporting documentation of Excess Social Security Taxes withheld.E - CY: Select box I to correspond for Schedule SE when a Schedule SE cannot be dummied to support line 3. PY: Select box J to correspond for Part V when a Part V cannot be dummied to support line 3.F - Select box M when corresponding for missing Schedule H.G - Select box O and fill in the blanks when corresponding for a missing or incomplete form.H - Select box S to correspond for a missing or incorrect TIN for a dependent.I - Select box T to correspond for a missing or incomplete TIN for the primary or secondary taxpayer.J - Select box V for missing documentary evidence or an incomplete Form 1310 when an original signature is present on a decedent return.K - If selecting box 6, only approved fill-ins can be used. An open paragraph (fill-in) must always be approved by National Headquarters Analyst. Use English fill-ins for Form 1040-SS and Spanish fill-ins for Form 1040-SS (sp) and Form 1040-PR.L - Select box 7,e when the return does not have original signatures or is missing documentary evidence for someone else to sign.M - Always select the appropriate fax paragraph from boxes 8 through d.Edit Action Code 215 on the return. All amounts on Form 13975 must be edited in dollars and cents. Bracket negative amounts. Please click here for the text description of the image. Form 13975 showing the proper way to fill in the form based on the instructions.Item A is in the left margin beside the return type (1040-SS or 1040-SS (sp)/1040-PR) selection.Item B is beside field (04) Tax Period.Item C is in the left margin beside paragraphs D and E.Item D is in the left margin beside paragraph H.Item E is in the left margin beside paragraphs I and J.Item F is in the left margin beside paragraph M.Item G is in the left margin beside paragraph O.Item H is in the left margin beside paragraph S.Item I is in the left margin beside paragraph T.Item J is in the left margin beside paragraph V.Item K is in the left margin beside paragraph 6.Item L is in the left margin beside paragraph 7,e.Item M is in the left margin, and a bracket has been drawn to include all paragraphs from 8 through d.Edit Action Code 215 on the return after preparing F13975. Please click here for the text description of the image.

# Copy of Receipt from Casinos in Lieu of Form 1042-S

Exhibit 3.21.3-17 Copy of Receipt from Casinos in Lieu of Form 1042-S A copy of a receipt from a casino In lieu of Form 1042-S. The receipt includes gross winnings and Federal Tax withholding information. Please click here for the text description of the image.

# Letter 4087C Fill-in Paragraphs

Exhibit 3.21.3-18 Letter 4087C Fill-in Paragraphs Letter 4087C – International Return Incomplete for Processing Literal A - Form 1128 required for accounting period change The tax return you submitted indicates you are changing your accounting period. Send us Form 1128, Application to Adopt, Change, or Retain a Tax Year, a copy of your application, or a statement relating to an application to change your accounting period. We are unable to process your return as submitted without this documentation or IRS authority. B - IRC 965 Transition Tax Statement (Form 1040 Only) Internal Revenue Code (IRC) Section 965 Transition Tax Statement was either not attached or was incomplete. Send us a completed, signed IRC Section 965 Transition Tax Statement to support the Section 965 claims on your tax return. C - Disaster return with unsupported itemized deductions Schedule A is incomplete or missing from your return. Complete the schedule with information that supports your entry for itemized deductions. If applicable, you must also submit any supporting forms for Schedule A, such as Form 4684. D - EC 366, Employer and employee addresses in Puerto Rico (MeF) Send us your Forms W-2, Wage and Tax Statement, used to support the amount of federal withholding on your tax return. K - Second Correspondence Thank you for sending us the information we requested on your tax return for the period shown on page 1 of this letter. We still need more information to process your return. Please send us the information we've requested in this letter.

# Letter 2894SP and Letter 2894C Fill-in Paragraphs

Exhibit 3.21.3-19 Letter 2894SP and Letter 2894C Fill-in Paragraphs Letter 2894SP (Form 1040-PR) – Returns Incomplete for Processing – Form 1040-PR Note: Note: For English translation see Letter 2894C below. Literal PD - Form 8959, Line 1 support of Medicare tax withheld Envienos los Formularios W-2AS, W-2CM, W-2GU, W-2VI, y 499R-2/W-2PR que documentan su anotación en la linea 1 del Formulario 8959. PM - EC 094 - Married Filing Separately Su planilla indicó el estado civil casado que radica por separado. Sin embargo, esta incluye ingreso que pertenence a su cónyuge. Envíenos la planilla contributiva corregida con solo su ingreso. Si desea radicar conjuntamente, ambos cónyuges tienen que firmar. Letter 2894C (Form 1040-SS) – Returns Incomplete for Processing – Form 1040-SS Literal PJ - Form 8959, Line 1 support of Medicare tax withheld Send us Forms W-2AS, W-2CM, W-2GU, W-2VI, and 499R-2/W-2PR that document your amount for Medicare wages and tips on line 1 of Form 8959. PL - EC 094 - Married Filing Separately Your return indicates a married filing separately filing status. However, it includes income belonging to your spouse. Submit a corrected tax return with only your income. If you wish to file jointly, both spouses must sign a joint return.

# Glossary

Exhibit 3.21.3-20 Glossary Term Definition Alien Any person who is not a U.S. citizen or U.S. National. For Income tax purposes, aliens are classified as Residents or Nonresidents. Bona Fide Residence A residence established in a foreign country or countries for an uninterrupted period which includes an entire year and part of the tax year of the return. Competent Authority The Commissioner, LB&I is the U.S. Competent Authority charged with administering the provisions of tax treaties, interpreting and applying the treaties, and reaching mutual agreement in specific cases. The U.S. competent authority conducts the competent authority process through two offices, Advance Pricing and Mutual Agreement Program (APMA) and the Treaty Assistance and Interpretation Team (TAIT). Domicile A fixed or permanent place of living for an indefinite length of time. A domicile can be different from the taxpayer's residence. Dual-Status Aliens who are both Residents and Nonresidents of the U.S. within the same tax year. Economic Impact Payment (EIP) Advance Recovery Rebate Credit payments. Effectively Connected Income Any compensation received for personal services in the U.S. Any earned income derived from an office or fixed place of business in the U.S. Generally applies to nonresidents. Excludable Income Any income that can be omitted from taxable income such as Form 2555/Form 2555-EZ (TY 2018 and prior) exclusions, Form 4563 exclusions and exclusions due to tax treaty conventions and IRC exclusions. Foreign Tax Treaties Country-specific tax treaties designed to avoid international double taxation and to prevent tax evasion. Fulbright Grant A grant under the Mutual Educational and Cultural Exchange Act of 1961. It can be received for teaching and research duties, or by students. Green Card Test A taxpayer is a lawful permanent resident of the U.S. at any time during the calendar year if that person has been issued an alien registration card, also known as a green card. IRC 911 Section of the Internal Revenue Code that allows U.S. citizens and resident aliens to claim an exclusion for certain income earned outside the U.S. and certain housing costs. Taxpayers use Form 2555 to claim this exclusion. IRC 931 Section of the Internal Revenue Code that allows bona fide residents of American Samoa to exclude income using Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa. IRC 933 Section of the Internal Revenue Code that allows U.S. citizens who are bona fide residents of Puerto Rico to exclude income from Puerto Rico sources. Nonresident Alien An alien who is temporarily residing in the U.S., a resident alien who has abandoned permanent residence in the U.S. or an alien who has never been in the U.S. Non-Effectively Connected Income Nonresident aliens' income received from sources within the U.S. which are not connected with a U.S. trade or business. Physical Presence Test A rule applied in determining if a taxpayer qualifies for the Foreign Earned Income Exclusion. Generally, the taxpayer must be physically present in a foreign country for a minimum of 330 days during a consecutive 12-month period that includes part of the tax year of the return. Principal Residence Usually the home in which a taxpayer resides for the majority of the tax year. Recovery Rebate Credit (RRC) TY20 and TY21 refundable credit available to certain taxpayers to assist with economic recovery. All or part of this credit may have been issued in advance as an Economic Impact Payment (EIP). Resident Alien Aliens admitted to the U.S. under permanent immigration visas are generally resident aliens and meet the substantial presence test or lawful permanent residency test (green card test). Substantial Presence Test A rule applied in determining if an alien is a U.S. Resident for tax purposes. Generally, an individual meets the substantial presence test if the individual was in the United States for at least 31 days during the current calendar year and was present in the United States for at least 183 days during the current year and the two preceding calendar years (when multiplied by the applicable multiplier provided in Section 7701(b)(3)(A)). Note: For purposes of the substantial presence test, an individual does not count days of temporary presence in the United States under certain visas. Tax Home A taxpayer's principal place of business, employment, station or post of duty, regardless of where the taxpayer maintains his or her residence. Treaty Trader Nonresident Alien who has entered the U.S. on an "E-1" visa. U.S. National An individual who, although not a U.S. citizen, owes his or her allegiance to the United States. For tax purposes, U.S. national refers to American Samoans and Northern Mariana Islanders who chose to become U.S. Nationals instead of U.S. citizens. Visa An endorsement written or stamped on a passport granting entry into a country. Withholding Agent Any person (e.g., individual trust, partnership, estate, corporation, government agency, non-profit organization or private organization), whether foreign or domestic, required to withhold income tax on U.S. source income received by a nonresident alien, foreign partnership corporation, and various other organizations. A withholding agent is responsible for submitting the withholding information on Form 1042 and providing the income recipient information on Form 1042-S. Worldwide Income Worldwide income is income earned anywhere in the world and is used to determine taxable income. Money that is paid to U.S. citizens or resident aliens as wages, independent contractor payments or unearned income from pensions, rents, royalties and investments may all be subject to tax by the IRS. There are some exceptions for U.S. taxpayers who live abroad.