Internal Revenue Manual
IRM 5.19.19 — Campus Collection International Case Processing (CCICP)
Part 5. Collecting Process
Chapter 19. Liability Collection Section 19. Campus Collection International Case Processing (CCICP) 5.19.19 Campus Collection International Case Processing (CCICP) Manual Transmittal August 07, 2025 Purpose (1) This transmits revised IRM 5.19.19, Liability Collection, Campus Collection International Case Processing. Material Changes (1) The substantive changes made to this IRM include: Number Subsection Nature of Change 1 IRM 5.19.19.2.2.1 IPU 23U0979 issued 09-26-2023 Added note to paren 9 about dialing U.S. country code before the number and added NMF contact number to the chart 2 IRM 5.19.19.2.1 IPU 23U1161 issued 12-11-2023 Added paren 8 to reference IRM 21.8.1.2.14, International Forms Processing for additional information. 3 IRM 5.19.19.2.2 IPU 23U1161 issued 12-11-2023 Added paren 6 to reference IRM 21.8.1.2.3 Web Sites and Telephone Numbers for additional information. 4 IRM 5.19.19.2.2.1 IPU 23U1161 issued 12-11-2023 Added ACS phone instructions to provide the (267)941-1000 number for international customer service and changed chart function name, added exception for SCP assistor referrals, added instruction to advise of toll-calling charges, added hours of operation link, and added requirement to document AMS. 5 IRM 5.19.19.4.3.9 IPU 23U1161 issued 12-11-2023 Changed the word "Service" to "IRS" in paren 4. 6 IRM 5.19.19.5 IPU 23U1161 issued 12-11-2023 Changed the word "Service" to "IRS" in paren 2. 7 IRM 5.19.19.5.2 IPU 23U1161 issued 12-11-2023 Changed the word "Service" to "IRS" in paren 6 and paren 6 note. 8 IRM 5.19.19 IPU 23U1161 issued 12-11-2023 Revised text for editorial changes throughout. 9 IRM 5.19.19.2.2.1 IPU 24U0180 issued 02-01-2024 Removed paren 9, and changed title in new paren 9 chart to "International Accounts Management" . 10 IRM 5.19.19.4.2 IPU 24U0180 issued 02-01-2024 Updated IRM reference for IMF Taxpayer Liable to File. Corrected ACS history code instructions in paren 3 chart. 11 IRM 5.19.19.4.3 IPU 24U0180 issued 02-01-2024 Corrected tax-treatment status in paren 2 for U.S. Nationals living in U.S. Territories. 12 IRM 5.19.19.4.3.1 IPU 24U0180 issued 02-01-2024 Removed "or national" , and rephrased income source description in paren 2 bullet list. Added note below paren 7 information about Forms 941PR and 941SS no longer being used after the fourth quarter of tax year 2023. 13 IRM 5.19.19.4.3.2 IPU 24U0180 issued 02-01-2024 Removed "and is deemed U.S. source income" from the end of the sentence in paren 3 for clarity. Deleted first bullet point, and edited paren 7 to indicate military members are U.S. employees. 14 IRM 5.19.19.4.3.3 IPU 24U0180 issued 02-01-2024 Edited paren 3 to remove unnecessary classifications of bona-fide residents of CNMI. 15 IRM 5.19.19.4.3.5 IPU 24U0180 issued 02-01-2024 Added information about Form 1040SS / 1040SS (sp.) being used for tax year 2023 and forward and Form 941PR no longer being used after the 4th quarter of tax year 2023. Moved IRM 21.8.1 reference under paren 5. Edited paren 9 to provide qualifications for Additional Child Tax Credit for Puerto Rico residents. Edited paren 10 to clarify qualification for excluding Puerto Rico sourced income. 16 IRM 5.19.19.4.3.9.1 IPU 24U0180 issued 02-01-2024 Replaced 1040PR with 1040SS / 1040SS (sp), in the list, and added a note about Puerto Rico taxpayers no longer using Form 1040PR for future filing. 17 IRM 5.19.19.4.4 IPU 24U0180 issued 02-01-2024 Updated U.S. territory employer forms list in paren 3. 18 IPU 24U0180 issued 02-01-2024 Updated the note below paren 4 about automatic and manual ACS Spanish letter issuance. 19 IRM 5.19.19.1 Listed the "Purpose" statement as the first paragraph item. 20 IRM 5.19.19.2.1 Added Primary Location Code 6635 and 9835 values and foreign country or U.S. Territory addresses of record as meeting international criteria. Converted the paragraph 7 list to a table and added "Commonwealth of" before "Northern Mariana Islands" . Added instructions to route international returns and correspondence to the Philadelphia Campus. Changed the order of the paragraphs for clarification. 21 IRM 5.19.19.2.2 Removed table, and put the para 2 website references in a bullet list. Changed the Tax Treaty IRS.gov website link and description. Replaced URLs with website titles. 22 IRM 5.19.19.2.2.1 Added the word "International" to the IRM title. Added English and Spanish phone transfer numbers for international criteria taxpayers calling from inside the U.S. or the U.S. Territories and deleted paragraph 2. Changed paragraph 10 exception to include balance due, delinquent return and ACS (ST22/03) calls and changed IRM 5.19.5 reference. Changed Accounts Management to Taxpayer Services in the paragraph 10 table. 23 IRM 5.19.19.2.2.3 Removed the word "Exhibit" from the reference to IRM 2.4.9-18 and listed U.S. Territories in para 3 and para 5 in alphabetical order. 24 IRM 5.19.19.4 Added stipulation to para 8 table stating guidelines apply to all taxpayers residing outside of the United States. Added additional information about U.S. citizens or U.S. residents to the first row, and reorganized other rows for clarity. 25 IRM 5.19.19.4.1 Listed U.S. Territories in para 2 in alphabetical order. Added para 4, and moved earned income type bullet list under the new paragraph. Changed para 6 "Puerto Rico" to "U.S. Territories" . Edited wording in sentence in para 7. Updated the title of Pub. 570, added information about Form 2555 housing exclusions, made editorial changes for Form 1040NR, and clarification for non-residents to claim itemized deductions. 26 IRM 5.19.19.4.2 Corrected RD90 and TOC0 ACS actions in the table. Changed sentence in para 1 from "nonresident alien" to "not a U.S. citizen or U.S. resident" . Added references to Pub 519 for additional information about U.S. residency tests and Pub 901 for treaty information. Revised the table in para 3 to specify income treatment and filing requirements for taxpayers who are not U.S. Citizens or U.S. Residents. 27 IRM 5.19.19.4.2.1 Moved U.S. Non-Resident Income Tax Return instructions to new subsection IRM 5.19.19.8.1 under IMF Individual Tax Returns. 28 IRM 5.19.19.4.3 Renumbered U.S. Territories procedures as IRM 5.19.19.5 and renumbered subsections accordingly. 29 IRM 5.19.19.4.3.7 Renumbered Tax Treaty instructions as new subsection IRM 5.19.19.6 updated Tax Treaty IRS.gov website link. 30 IRM 5.19.19.4.3.8 Renumbered Foreign Earned Income Exclusion topic as IRM 5.19.19.7 31 IRM 5.19.19.4.3.9 Moved and renumbered Self-Employment Tax topic as IRM 5.19.19.8.1 as subtopic under IMF Individual Tax Returns 32 IRM 5.19.19.4.3.9.1 Moved and renumbered IMF Individual Tax Returns topic under IRM 5.19.19.8. 33 IRM 5.19.19.4.4 Renumbered BMF/NMF International Tax Returns topic as IRM 5.19.19.9 and renumbered the following subsections accordingly. 34 IRM 5.19.19.5 Removed the word "The" before "Commonwealth of the Northern Mariana Islands" in para 1 bullet. Listed U.S. Territory names and added the word "Section" for IRC1 in para 2. 35 IRM 5.19.19.5.1 Changed "Possessions" to "Territories" in para 3 and listed U.S. Territories in alphabetical order in para 7. Made other editorial changes for added clarity. 36 IRM 5.19.19.5.2 Updated language in para 1 about American Samoa's tax system. Changed the word "Possessions" in paragraphs 6 and 11 to "Territories" . Added household employment tax instructions in new para 10. Added double taxation instructions in new para 12. 37 IRM 5.19.19.5.3 Edited para 1 explaining the CNMI tax system. Added double taxation instructions in new para 5. Added household employment tax instructions in new para 9. Deleted mailing instructions for CNMI tax returns. Changed title of Pub 570 from "Possessions" to "Territories" . 38 IRM 5.19.19.5.4 Edited para 1 explaining the Guam tax system. Included Form 5074 instructions as a bullet point in para 4. Added household employment tax instructions in new para 6. Added double taxation instructions to new para 7. 39 IRM 5.19.19.5.5 Changed the word "Possessions" to "Territories" in the Pub 570 title in para 2. Added double taxation instructions in new para 5. 40 IRM 5.19.19.5.6 Edited para 1 about the USVI tax system. Revised instructions about identical returns and Form 8689 to indicate they may be required. Added household employment tax instructions in new para 5. Added double taxation instructions in new para 6. Revised USVI Additional Child Tax Credit (ACTC) statement. 41 IRM 5.19.19.5.6.3 Added the word "over" after the word "cover" in para 4. 42 IRM 5.19.19.6 Changed word "citizen" to "resident" in para 1 sentence. 43 IRM 5.19.19.7 Added "and Foreign Tax Credits" to the title. Added an alpha list under para 1 and deleted paragraphs with the same content. Moved a statement explaining 2555 requirements for joint taxpayers claiming the exclusion to a new paragraph. Changed the title to "Foreign Earned Income Exclusion, Foreign Housing Exclusion and Foreign Housing Deduction" . Made editorial changes for foreign tax credit, 2555 earned income and housing cost exclusions/deductions. Made other editorial changes regarding Form 1116. 44 IRM 5.19.19.8.2 Edited sentence in para 1 clarifying taxpayers who file Form 1040NR. 45 IRM 5.19.19.8.3 Editorial change in para 1 to add "U.S." before the word "territories" . 46 IRM 5.19.19.9 Removed phrase "Puerto Rico and other" from 2nd bullet point in para 2. 47 IRM 5.19.19.9.1 Edited sentence in para 1 for reference to types of income subject to withholding at the source, who is responsible for withholding, and determining the correct withholding tax rate. 48 IRM 5.19.19.9.2 Edited to provide additional details about Form 3520 filing. 49 IRM 5.19.19.10 Made editorial changes for improved readability and updated IRM 5.19.5 reference regarding Third Party Contact. 50 IRM 5.19.19.10.2 Updated link for MCAR Coordinators and deleted paragraph 3 about transfers. 51 IRM 5.19.19.10.3 Edited para 2 statement from "Including Puerto Rico" to "including the U.S. Territories" . 52 IRM 5.19.19.10.4 Updated IRM 5.19.5 reference regarding Third Party Contact. 53 IRM 5.19.19.10.6 Edited sentences about IRC 6503(c) for accuracy and corrected IRC subsection from "b" to "c" . 54 IRM 5.19.19.11 Moved Recalculation of the Collection Statute Expiration Date (CSED) under Case Processing IRM 5.19.19.10 subsection as IRM 5.19.19.10.6. 55 IRM 5.19.19.11.1 Moved Individual Taxpayer Identification Number (ITIN) topic under IRM 5.19.19.8 subsection as IRM 5.19.19.8.1. 56 Throughout Updated URLs and website names as needed. Effect on Other Documents This version supersedes the IRM 5.19.19 published on March 17, 2023. The following IPUs have been incorporated into this IRM. IPU 23U0979 dated 9-26-2023, IPU 23U1161 dated 12-11-2023, and IPU 24U0180 dated 2-1-2024. Audience All Small Business/Self-Employed (SB/SE) Campus Collection Employees, Automated Collection System (ACS) and Support (ACSS), Compliance Service Collection Operation (CSCO). Effective Date (08-07-2025) Suad Jama Acting Director, Collection Inventory Delivery and Selection Small Business/Self-Employed Division
Program Scope and Objectives
5.19.19.1 (08-07-2025) Program Scope and Objectives Purpose: This IRM is to be used by Campus Collection in conjunction with the rest of IRM 5.19, Liability Collection when working international cases. Audience: ACS collection representatives, ACSS, and CSCO Tax examiners, leads and managers whose teams are responsible for working international taxpayer phone calls and correspondence. Policy Owner: Director, Collection Inventory Delivery and Selection (CIDS). Program Owner: Director, Collection Inventory Delivery and Selection (CIDS), ACSSI. Primary Stakeholders: Automated Collection System (ACS), ACS Support (ACSS) and Compliance Services Collection Operation (CSCO). Program Goals: This IRM provides the fundamental knowledge and procedural guidance for identifying and processing international taxpayer balance due and delinquent return responses. By following the processes and procedures provided by this IRM, employees will process international responses in adherence with international legal regulations in a manner that follows IRS policy and procedures while maintaining the best interests of the Government. The objective of the Campus Collection International program is to provide specialized service to international taxpayers to help them satisfy their balance due and delinquent investigations accurately.
Background
5.19.19.1.1 (03-17-2023) Background This IRM provides directions and guidelines for working international balance due and delinquent return cases in Campus Collection, Automated Collection System (ACS), ACS Support (ACSS) and Compliance Services Collection Operation (CSCO). Specific international account characteristics, regulations, Campus Collection policies and procedures are contained throughout the IRM.
Authority
5.19.19.1.2 (03-17-2023) Authority CFR 5 Part 2635, Standards of Ethical Conduct for Employees of the Executive Branch. IRM 1.2.1.6, Policy Statements for the Collecting Process, related to this section include: Policy Statement 5-1 Enforcement is a necessary component of a voluntary assessment system Policy Statement 5-2 Collecting Principles Policy Statement 5-71, Reporting accounts receivable as currently not collectible - General Policy Statement 5-133 Delinquent returns - enforcement of filing requirements The IRS Restructuring and Reform Act of 1998 (IRS RRA 98), Section 3705(a), provides identification requirements for all IRS employees working tax related matters. The IRS adopted the Taxpayer Bill of Rights (TBOR) in June 2014. Employees are responsible for being familiar with and acting in accordance with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see TBOR.
Roles and Responsibilities
5.19.19.1.3 (03-17-2023) Roles and Responsibilities The Director Collection Inventory Delivery Systems (CIDS) is responsible for all policy and procedures related to campus collection international case processing. Operations managers are responsible for managing campus collection international case processing including telephone, and correspondence transactions, following the procedures in this IRM. They oversee department, team and employee responses to taxpayer inquiries and responses concerning balances due and return delinquencies and their resolution. Campus managers and leads are responsible for ensuring compliance with the guidance and procedures described in this IRM for international balance due and return delinquencies. Campus employees who work international balance due and return delinquency cases are responsible for responding to taxpayer inquiries and taking appropriate actions as defined in this IRM.
Program Management and Review
5.19.19.1.4 (03-17-2023) Program Management and Review Program Reviews: Operational and program reviews are conducted to ensure that case actions taken are in accordance with the procedures in this IRM. Program Reports: The following weekly, monthly and/or ad-hoc reports are generated by management, and can assist with evaluating the performance of the Campus Collection International Case Processing program Embedded Quality Review System (EQRS) Reports. National Quality Review System (NQRS) Reports. Accounts Management Services (AMS) Reports. ACS Reports. Work Planning & Control (WP&C) Reports. Case Control Activity System (CCA) Reports. Program Effectiveness: Evaluative (EQRS) and national (NQRS) quality reviews are routinely conducted to ensure case actions are timely and in accordance with the procedures in this IRM. Phone and paper cases are routinely reviewed by Centralized Quality Review System (CQRS) to ensure case actions are timely and in accordance with the procedures in this IRM. Case reviews are conducted by managers to ensure compliance with this IRM. Operational reviews are conducted by the Department and Operation Managers annually to evaluate program delivery, conformance to administrative requirements and ensure compliance with this IRM.
Program Controls
5.19.19.1.5 (03-17-2023) Program Controls Incoming telephone calls are distributed to internationally trained telephone representatives in Philadelphia using the Unified Contact Center Environment (UCCE) system. Taxpayer responses and other inventory are loaded to AMS and then distributed to internationally trained correspondence tax examiners in CSCO and ACSS. AMS tracks employee actions and is monitored by Operation, Department, and front-line managers. Employees ensure that international rules and regulations are considered and applied when handling international taxpayer phone calls and working written responses regarding balance due and delinquent returns. Managers are required to follow program management procedures and controls addressed in IRM 1.4.20, Filing & Payment Compliance Managers Handbook.
Terms and Acronyms
5.19.19.1.6 (03-17-2023) Terms and Acronyms Refer to IRM 5.19.5-4, Standard Abbreviations for Use in Account Management Services, AMS and/or ACS. For a list of balance due acronyms, refer to IRM 5.19.1-1, Acronyms and Explanations for IRM 5.19.1. For a list of delinquent return acronyms, refer to IRM 5.19.2.1.6, Acronyms. Additional acceptable acronyms and abbreviations can be found in the section ReferenceNet Acronym Database.
Related Resources
5.19.19.1.7 (03-17-2023) Related Resources When using this chapter to perform your daily duties, it may be necessary to use other resources listed below: IRM 5.19.1, Balance Due IRM 5.19.2, Individual Master File (IMF) Return Delinquency IRM 5.19.4, Enforcement Action IRM 5.19.6, ACS Support IRM 5.19.13, Campus Procedures for Securing Financial Information IRM 5.19.17, Campus Procedures for Currently Not Collectible and Offers in Compromise IRM 5.19.19, Campus Collection International Case Processing (CCICP) IRM 5.19.21, Campus Procedures for Handling Identity Theft IRM 5.19.22, Business Master File (BMF) Return Delinquency Employees may also find the following information helpful: Servicewide Electronic Research Program (SERP) Integrated Automation Technologies (IAT) e-ACSG ACS Support e-Guide CSCO e-Guide
Overview
5.19.19.2 (03-17-2023) Overview This manual provides guidance to the Campus Collection function when working international accounts. This IRM is to be used in conjunction with the rest of IRM 5.19, Liability Collection when working international cases. The goal is to improve taxpayer service to international taxpayers and to ensure that Campus Collection is able to assist the taxpayer in resolving their balance due and delinquent investigations accurately.
Taxpayers and Accounts Meeting International Criteria
5.19.19.2.1 (08-07-2025) Taxpayers and Accounts Meeting International Criteria This section identifies specific criteria of an international taxpayer and/or account. Generally, resident aliens are those persons who enter the U.S. with the intention of establishing a U.S. residence. Furthermore: A taxpayer is a resident for U.S. tax purposes if the taxpayer is admitted to the U.S. for permanent residence, is considered substantially present in the U.S. for the year, or makes an election to be considered a U.S. resident. For additional information on resident aliens refer to Pub 519, U.S. Tax Guide for Aliens. A resident alien taxpayer is entitled to all deductions, exclusions, and credits under the same rules as a U.S. citizen. A U.S. citizen's or resident alien's worldwide income is generally subject to U.S. income tax, regardless of where the taxpayer is living. A taxpayer living overseas is subject to the same rules for filing income, estate, and gift tax returns and for paying estimated tax that apply to a U.S. citizen or resident alien living in the United States. U.S. citizens and resident aliens who qualify can file Form 2555, Foreign Earned Income, to exclude foreign earned income and to exclude and deduct housing costs. A nonresident alien is in the U.S. only temporarily. For example, this person may be a tourist, a student or a temporary worker under a qualifying visa. Below are examples of cases that meet international criteria: Number Circumstance 1 Claims referencing a Tax Treaty 2 Claims referencing IRC 911, Citizens or residents of the United States living abroad 3 Claims referencing IRC 931, Income for sources within American Samoa 4 Clams referencing IRC 932, Income for sources within the U.S. Virgin Islands 5 Claims referencing IRC 933, Income from sources within Puerto Rico 6 Claims referencing IRC 935, Income from sources within the Commonwealth of Northern Mariana Islands or Guam 7 Correspondence received from taxpayers claiming they are nonresident aliens 8 Correspondence stating the taxpayer is a treaty trader or a Fulbright grantee 9 Dual citizenship status issues 10 A request for a tax adjustment referencing: Form 1116, Foreign Tax Credit Form 2555, Foreign Earned Income Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa Form 5074, Allocation of Income Tax to Guam or Commonwealth of Northern Mariana Islands Form 8689, Allocation of Income Tax to the U.S. Virgin Islands Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) Form 8804, Annual Return for Partnership Withholding Tax (Section 1446) Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests 11 Taxpayer accounts showing Primary Location Code 6635 and 9835 on the CC ENMOD response screen 12 Taxpayers whose account address of record is a another country or a U.S. Territory See IRM 21.8.1.2.14, International Forms Processing, for additional information. Correspondence or tax returns with a foreign country address, U.S. Territory address, or which meet international criteria as listed above received at any Campus other than Philadelphia are to be forwarded as follows: Note: Send the taxpayer an 86C letter when routing correspondence. See IRM 21.3.3.4.2.1, Use of 86C Letter - Referring Taxpayer Inquiry/Forms to Another Office, for additional information. Criteria Address Any balance due / delinquent return tax modules in ACS status 22 or 03 ACSS Philadelphia Stop N-431.143 2970 Market St. Philadelphia, PA 19104 No balance due / delinquent return modules in ACS status. CSCO Philadelphia Stop N-431.142 2970 Market St. Philadelphia, PA 19104
Available International Tools and Research Engines
5.19.19.2.2 (08-07-2025) Available International Tools and Research Engines There are various IRS publications available to assist campus collection employees and international taxpayers with determining liability for filing U.S. tax returns, due dates, where to file, etc. The following websites can be used to research various international issues: Tax Code, Regulations and Official Guidance Tax Treaty Tables U.S. Citizenship and Immigration Services Social Security Administration United States Department of State International Telephone Country Codes ReferenceNet Legal and Tax Research Services Other types of internal and external research tools available for employees are: IDRS AMS (Accounts Management System) Corporate Files On Line (CFOL) command codes ADR (Address Research) Document 6209, IRS Processing Codes and Information IRM 2.3.1, IDRS Terminal Responses Accurint RTR (Remittance Transaction Research) www.411.com Electronic payments can be researched and verified via IDRS command code (CC) Electronic Federal Tax Payment System (EFTPS). See IRM 2.3.70, Command Code EFTPS, for guidance on using this CC to verify if payments were applied correctly. The Transcript Delivery System (TDS) can be used to send Wage and Income information documents to the taxpayer. Note: See IRM 21.2.3, Transcripts, for procedures on using TDS for researching tax account and return information. TDS delivers tax account and return information to the user with an appropriate cover letter (when applicable). For additional information see IRM 21.8.1.2.3, Web Sites and Telephone Numbers.
General International Information
5.19.19.2.2.1 (08-07-2025) General International Information The purpose of this section is to provide guidance when working international balance due accounts, including those for taxpayers in U.S. territories, for both Individual Master File (IMF) and Business Master File (BMF) as well as working delinquent return (DelRet) cases. A balance due, or Tax Delinquent Account (TDA), account occurs when the taxpayer has an outstanding liability for taxes, penalties, and/or interest. A DelRet, or Tax Delinquent Investigation (TDI), occurs when the taxpayer has an outstanding tax return(s). Be sure to prevent unauthorized disclosures of taxpayer information at all times. For additional guidance see IRM 5.19.1.2.3, Disclosure Overview: Verifying Identity of Contact Party. All actions taken on taxpayer accounts and/or actions promised by the taxpayer must be documented on AMS. For additional guidance see IRM 5.19.1.2.4, Documenting Account Actions. For additional information regarding acronyms, abbreviations used throughout various IRMs, see IRM 5.19.1-1, Acronyms and Explanations for IRM 5.19.1. When referring or redirecting accounts to other functions or areas, follow IRM 5.19.1.3, Referrals or Redirects. Exception: SCP phone assistors receiving international or U.S. territory balance due, delinquent return or ACS (ST22/03) calls refer to IRM 5.19.5.12.2, SCP ACS Incoming Call Procedures. When a taxpayer calls the ACS toll-free number, and the account is assigned to International as defined in IRM 5.19.19.2.1, Taxpayers and Accounts Meeting International Criteria, transfer the call to extension 1386 (English) or extension 1385 (Spanish) for case handling. For telephone numbers to be provided to international taxpayers living outside the U.S. or outside the U.S. Territories ONLY, use the table below. Advise taxpayers toll-calling charges may apply. Note: Taxpayers living abroad must dial the U.S. country code +1 or 001 before the numbers listed below. Function Telephone Fax Number International Taxpayer Services 267-941-1000 681-247-3101 Automated Collection System (ACS) 267-941-1004 267-941-1031 Automated Underreporter (AUR) 267-941-1026 267-466-1023 FIRPTA 267-941-1000 681-247-3101 International Examination 267-941-1037 681-247-3129 Non-Master File (NMF) 267-466-4777 N/A Taxpayer Advocate Service - Pacific US Territories (American Samoa, Commonwealth of the Northern Mariana Islands, and Guam) 808-466-6375 855-819-5024 Taxpayer Advocate Service - Caribbean US Territories and International (English) (Puerto Rico and the U.S. Virgin Islands) 787-522-8601 855-818-5697 Taxpayer Advocate Service - Caribbean US Territories and International (Spanish) (Puerto Rico and the U.S. Virgin Islands) 787-522-8600 855-818-5697 Taxpayer Protection Program 267-941-1083 N/A For hours of operation of functions outside Campus Collection, refer to Telephone Numbers (The Source). For information regarding account actions on referrals/redirects refer to IRM 5.19.1.4.1, Account Actions on Referral/Redirects. For information regarding taxpayer information refer to IRM 5.19.1.4.2, Taxpayer Information. For ACS employees see IRM 5.19.18.4, FERDI General Case Processing Overview, for information on Federal Employee/Retiree Delinquency Initiative (FERDI) account transfer to the FERDI unit in the ACS Call Site in Jacksonville, Florida. Use telephone transfer number 1082, or if prior to 8 a.m. EST complete a Form 4442, Inquiry Referral, and fax to the Jacksonville FERDI unit. See IRM 5.19.18.2, Identifying FERDI Cases, for information on how to identify a FERDI taxpayer. Document AMS with information provided to the taxpayer.
Identity Theft
5.19.19.2.2.2 (08-07-2025) Identity Theft Identity theft occurs when someone illegally uses another person's information such as their name, social security number, or other identifying information to file tax returns or derive other financial benefits by posing as the legitimate information owner. If an international taxpayer makes an allegation of identity theft, or if an employee suspects that identity theft has occurred, follow the guidance in IRM 5.19.21, Campus Procedures for Handling Identity Theft.
International Address Changes
5.19.19.2.2.3 (08-07-2025) International Address Changes When considering inputting address changes, refer to IRM 3.13.5.29, Oral Statements/Telephone Contact Address Change Requirements, and IRM 3.13.5.51, Information Required to Complete Address Changes. Once it is determined that the taxpayer resides overseas and the address is validated, update CC ENTITY to reflect the foreign address and location code. Input transaction code (TC) 030 with Document Code 63 on CC ENREQ to identify the taxpayer as living outside the U.S. The format of a foreign address will differ depending on the postal system of the country. In general, a foreign address consists of a street address, city or town name, other administrative divisions and postal code. A postal code can be a series of letters, digits, or a combination of letters and digits depending on the postal system. Due to limitation of characters, the address may need to be altered so that the mail can still be delivered. File Location Codes 21, 66, and 78 contain all returns with a U.S. territory address with a 5-digit zip code, which include American Samoa, Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, and the U.S. Virgin Islands. File Location Codes 20, 60, and 98 are used for returns with: A foreign country address Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, or Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests Form 2555 Dual Status Notification Form 1040NR, U.S. Nonresident Alien Income Tax Return Abbreviation for U.S. territories and countries that have entered compacts of free association with the United States. Country or U.S. Territory Abbreviation American Samoa AS Commonwealth of Northern Mariana Islands MP Federated States of Micronesia FM Guam GU Marshall Islands MH Palau PW Puerto Rico PR Virgin Islands (U.S.) VI Note: Any address change for U.S. territory countries must include the zip code. For additional guidance refer to IRM 2.4.9.9, Codes and Abbreviations, and IRM 2.4.9-18, BMF Foreign Address Change.
Determine Correct Filing Requirement and/or Tax Liability
5.19.19.2.3 (03-17-2023) Determine Correct Filing Requirement and/or Tax Liability This section provides guidance in identifying correct filing requirements and determining the correct tax liability. The taxpayer may indicate verbally or in writing the tax liability is questionable, such as: They do not owe the balance due. They dispute the amount owed. They do not know why they have a balance owed. Taxpayer may indicate verbally or in writing they are not required to file specific tax returns, for example, they are bona fide residents of another country, they have renounced their U.S. citizenship or residency and/or they have already filed the return(s) in question. If the taxpayer states they no longer reside in the U.S. and no longer receive U.S. source income or are no longer self employed, ask the following questions: Is the taxpayer a U.S. citizen or resident? Is the taxpayer employed in the country where they are residing? If so, U.S. citizens and/or residents are taxed on worldwide income; it does not matter whether the income is U.S. sourced. If the taxpayer states they are no longer a U.S. citizen or resident, but are working in their home country or overseas and had a balance owed or delinquent return prior to renouncing their U.S. citizenship or residency, you must obtain all earned income information, regardless of whether it is a U.S. source or not. See IRM 21.8.1.12.20, IRC 877A, Mark-To-Market Exit Tax. When speaking or corresponding with the taxpayer do not pursue collection if you are not able to determine the correct tax liability. However, you must address any delinquent returns, refer to IRM 5.19.2.6.4.5, IMF - Determining Liability.
Balance Due Overview
5.19.19.3 (03-17-2023) Balance Due Overview Balance due accounts and return delinquencies are systemically monitored through computer analysis (weekly TDA/TDI analysis) and placed in a specific status based on risk categories, repeater codes, selection codes and/or other characteristics of the specific account or delinquency. Several notices are generated to the taxpayer informing them of their outstanding liability. When a taxpayer balance due inquiry is received, it is important to be aware of the Master File and Collection Status Codes and Definitions to determine whether you should work the account or refer it to another office for additional guidance. For ACS Incoming Calls, see the electronic ACS Guide (e-ACSG) on SERP under "e-guides" for procedures and telephone techniques to utilize in addressing all compliance issues and controlling the conversation. Written requests received in CSCO and ACS Support Operations must be controlled within 14 days and acknowledged within 30 days from IRS received date if the case cannot be closed. Sites using AMS for controlling and monitoring inventory follow AMS guidelines for case control and acknowledgment of taxpayer correspondence. If correspondence is received from a previous area after the 30 days expires and no interim letter was issued, you must send an interim letter within five business days of receipt in your area. Follow all other IDRS control procedures in IRM 21.5.1.4.2.2, Integrated Data Retrieval System (IDRS) - Control Procedures.
Payment Options and Ability to Pay
5.19.19.3.1 (03-17-2023) Payment Options and Ability to Pay There are several methods of payment that allow taxpayers to pay their liabilities over time. Refer to IRM 5.19.1.6, Methods of Payment. Taxpayers unable to pay their balance due may qualify to be reported currently not collectible (CNC) or may submit an OIC. Refer to IRM 5.19.17, Campus Procedures for Currently Not Collectible and Offers in Compromise. Follow the instructions below if you determine the tax liability is questionable and a referral to another office is appropriate. Input CC STAUP to suspend further notices for nine cycles prior to referring the balance due inquiry to another office/area. IF THEN The taxpayer states liability previously paid. See IRM 5.19.1.4.3.1, Tax Liability Previously Paid. The taxpayer requests an installment agreement (IA) and the account meets pending IA criteria. See IRM 5.19.1.6.4.7, Pending IA Criteria. The account meets Taxpayer Advocate Service (TAS) criteria. See IRM 21.1.3.18, Taxpayer Advocate Service Guidelines, and IRM 13.1.7.2, TAS Case Criteria. The taxpayer is requesting innocent spouse relief. See IRM 5.19.1.5.18, Innocent Spouse. The taxpayer is requesting information on collection appeal rights. See IRM 5.19.8, Collection Appeal Rights. The balance owed requires an adjustment. See IRM 5.19.1.4.3.2, Adjusting Tax for a Balance Due. The balance owed is due to an Automated Substitute for Return (ASFR) assessment. See IRM 5.18.1, Automated Substitute for Return (ASFR) Program. Note: If the taxpayer requests an IA, and the account does not meet pending IA criteria, see IRM 5.19.1.6.4.7.1, Requests Not Meeting Pending IA Criteria.
Financial Analysis
5.19.19.3.1.1 (03-17-2023) Financial Analysis This section provides additional guidance for conducting financial analysis on international accounts. Refer to IRM 5.19.13, Campus Procedures for Securing Financial Information, for general guidance when conducting financial analysis. Before closing accounts as CNC or granting an IA, you must secure financial information. Note: Accounts for certain individuals may be reported as CNC hardship if a Collection Information Statement can be verified, even if there are unfiled returns. See IRM 5.19.17.2.4, CNC Unable to Pay - Hardship. This applies to accounts on individual or joint IMF assessments, sole proprietorships, partnerships where a general partner is personally liable for the partnership taxes, and LLCs, where an individual owner is identified as the liable taxpayer. Secure substantiation on expenses that are questionable. Any verbal/internal verification or paper substantiation received from the taxpayer must be clearly documented. Substantiation of income and/or expenses can include, but is not limited to: Bank statements or cancelled checks providing proof of payments being made Credit card statements Rent/Lease receipts and lease agreements Payment receipts Court order; must provide proof of payments Contracts
International Return Delinquency Process Overview
5.19.19.4 (08-07-2025) International Return Delinquency Process Overview This section provides a general overview on international accounts (including the U.S. territories), taxpayer filing requirements, types of returns to file, income, exemptions, deductions, and credits. U.S. citizens and resident aliens living or traveling outside of the U.S. generally are required to file income tax returns and pay estimated taxes in the same way as taxpayers residing in the U.S. Taxpayers outside the U.S. are allowed an automatic two month extension to file an income tax return. However, if they pay the tax after the regular due date, interest and penalties will be charged from the regular due date until the date the tax is paid. The taxpayer cannot use the automatic extension of time to file if they: Want the IRS to figure the tax, or Are under a court order to file by the regular due date. Taxpayers outside of the U.S. can also file Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, for a six month extension of time to file. If the taxpayer outside the U.S. has a two month extension, the six month extension only gives the taxpayer an additional four month extension. Both extensions start at the same time. The taxpayer does not have to file Form 4868 until the new due date allowed by the first extension. Follow the guidelines below for all taxpayers residing outside of the United States. Note: If the taxpayer is given a deadline and warned of enforcement action by telephone, a letter is not required to be sent. If And Then Taxpayer is not a U.S. citizen or U.S. resident (green card holder) who resides outside of the United States. Income is from Interest paid by U.S. Obligors - General Interest on Real Property Mortgages Interest paid to a Controlling Foreign Corporation Dividends Paid by U.S. Corporation Qualifying for Direct Dividend Rate Capital Gains Industrial Royalties Copyright Royalties-Motion Pictures and Television, or other Real Property Income and Natural Resources Royalties Pensions/Annuities Social Security Payment AND TP's country of citizenship was verified. Note: Refer to Pub 901, U.S. Tax Treaties for guidance. If the taxpayer is "Not Liable:" CSCO employees: Input TC 590 cc 76 using CC FRM49. ACS employees: Input TC 590 cc 26 using CC FRM49. Enter ACS history code "TOC0,21,59026" . If the taxpayer is "Liable to file:" CSCO/ACS/ACSS employees: Send a 2269C letter, with the appropriate paragraphs, advising taxpayer that failure to file within 75 days could subject the taxpayer to a fine and/or criminal penalties and of possible Substitute for Return (SFR) processing. If account on ACS, enter ACS history code "TOI5,75,2269C" . Taxpayer is a U.S. citizen or green card holder. Income is from: Interest paid by U.S. Obligors - General Interest on Real Property Mortgages Interest paid to a Controlling Foreign Corporation Dividends - Paid by U.S. Corporation Qualifying for Direct Dividend Rate Capital Gains Industrial Royalties Copyright Royalties - Motion Pictures and Television, or Other Real Property Income and Natural Resources Royalties Pensions/Annuities. Social Security Payment AND taxpayer's country of citizenship was verified Note: Refer to Pub 901, U.S. Tax Treaties, for guidance. Input appropriate history items on IDRS and enter history on AMS documenting all actions taken. Taxpayer is a U.S. citizen or resident or resident (green card holder) who resides outside of the United States Income is from Form W-2 wages and/or Form 1099 (non-employee compensation). If taxpayer states not liable and does not indicate whether work was performed in the U.S., send a 2269C letter, indicating earnings reported on IRPTRL and request additional information regarding where the work was performed. Note: Send the taxpayer a Wage and Earnings TDS transcript. If taxpayer states not liable and indicates the work was performed outside of the U.S., then: For CSCO employees: Input TC 590 cc 76 using CC FRM49. For ACS employees: If account on ACS, input TC 590 cc 26 using FRM49 and input ACS history code "TOC0,21,59026" . Input appropriate history items on IDRS and enter comments on AMS documenting all actions taken.
International Filing Requirements (Miscellaneous)
5.19.19.4.1 (08-07-2025) International Filing Requirements (Miscellaneous) This section provides information on joint filers (citizen, resident with a non-citizen/resident, Earned Income Tax Credit (EITC) and the overseas taxpayer). Individual taxpayers identified as living in a U.S. territory (American Samoa, the Commonwealth of Northern Mariana Islands, Guam, Puerto Rico, or the U.S. Virgin Islands), have different filing requirements than domestic taxpayers. See Pub 570, Tax Guide for Individuals With Income From U.S. Territories. International taxpayers can elect to exclude the income earned in a foreign country, and exclude or deduct their housing costs if they meet the criteria. These benefits are provided under IRC 911. Refer to the instructions of Form 2555 for the amount of foreign income that may be excluded, and the housing cost amount that may be excluded or deducted for the given tax year. To claim these benefits, the taxpayer must file Form 2555, with Form 1040. The computation of the foreign earned income exclusion and the housing costs are made on Form 2555. Generally, foreign earned income is the income the taxpayer received for services performed in a foreign country during a period their tax home is in a foreign country. The foreign housing exclusion applies only to amounts considered paid for with employer-provided amounts, and the housing deduction applies only to amounts considered paid for with self-employment earnings. In order to claim either exclusion or the deduction, at taxpayer must meet either the bona fide residence test or the physical presence test. Earned income is pay for personal services performed such as: Salaries and wages Commissions Bonuses Professional fees Tips Current Form 1040NRs are filed in Austin, TX. Returns with payment are filed in Charlotte, NC. A taxpayer can generally claim itemized deductions only if they have effectively connected income. See IRM 21.8.1.12.10, Effectively Connected Income. Generally, the rules for filing income, estate and gift tax returns, including paying estimated tax, are the same whether the taxpayer lives abroad or in the United States. If the taxpayer lives overseas they are given an automatic two month extension to file. However, any tax due must be paid by April 15th to avoid interest and penalty. This also applies to taxpayers in the military service on duty outside the U.S. and the U.S. Territories, unless the taxpayer is in combat zone. See IRM 5.19.2.6.4.1.1, Combat Zone IMF Procedures, for additional guidance. Nonresident aliens may not be required to file a return when investing in the U.S. (stocks, bonds, etc.). To be eligible, taxpayers must complete Form W-8 BEN, Certificate of Foreign Status of Beneficial Owner for U.S. Tax Withholding. Taxpayers should use this form if they are claiming treaty benefits or are providing the form only to claim they are a foreign person exempt from backup withholding. They can also complete Form 8233, Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Non-resident Alien Individual, and submit to their payor who will submit to the IRS. Many times they do not complete these forms and their income is reported to the IRS. Taxpayers are considered a U.S. resident for tax purposes if they are in the United States for at least 31 days in the current year and meet the substantial presence test. This test is met if the total number of days present in the year in question, plus 1/3 of the days present in the preceding year, plus 1/6 of the days present in the second preceding year add up to 183 days or more. See the example below: Example: The delinquent tax year (TY) is 2019 (you will only consider 1/3 of days present for TY 2018 and only 1/6 for tax year 2017). TY 2019 - 120 days present (120 days) TY 2018 - 120 days present (40 days= 1/3 of actual days) TY 2017 - 120 days present (20 days= 1/6 of actual days) Total days above = 180 days. In this example the taxpayer would not be considered a resident under the substantial presence test. For additional information on the substantial presence test see IRM 21.8.1.12.2, Test for Resident Alien and Nonresident Alien Status. All international taxpayer income must be reported in U.S. dollar equivalents. Taxpayers may use the yearly average exchange rate; however, the daily rate may be used for specific transactions. Exchange rates can be found on the "Foreign Currency and Currency Exchange Rates" page at www.irs.gov; keyword search term "exchange rates" .
Processing IMF Responses
5.19.19.4.2 (08-07-2025) Processing IMF Responses This section provides guidance on working responses received from the taxpayer either through correspondence or calls. Research all IDRS command codes and available resources to determine taxpayer income sources. Once the taxpayer information has been verified, follow the guidelines stated in this section. Note: If the taxpayer is given a deadline and warned of enforcement action by telephone, a letter is not required to be sent. If the taxpayer states that they are not liable for U.S. tax because they are not a U.S. citizen or a U.S. resident, verify their income via CC IRPTR. Follow the table below for guidance. Note: See Pub 519, U.S. Tax Guide for Aliens, Chapter 1 for U.S. residency test details. If And Then Income is interest and dividend income. Research of CC IRPTR indicates that the interest and dividend income is from non-U.S. sources, See Pub 519, U.S. Tax Guides for Aliens to determine source of income for dividends and interest. Taxpayer is not liable to file U.S. tax return. CSCO employees - Input TC 590 cc 75. Update AMS of actions taken. ACS employees: Input TC 590 cc 26. For standalone TDIs input history item RD90,,026 then TOC0,21,59026. For mixed modules input history item RD590,26 then TO14,,59026. Update AMS of actions taken. Income is interest and dividend income. Research of CC IRPTR indicates that the interest and dividend income is from U.S. sources reported from certain capital gains from U.S. sources, See Pub 519, U.S. Tax Guides for Aliens to determine source of income. The taxpayer is generally subject to U.S. tax unless a Tax Treaty applies that may change result Verify the country of residence. Refer to Pub 901, U.S. Tax Treaties, for additional guidance on treaty information. Send taxpayer 2269C or appropriate letter. If country of residence is not on the Tax Treaty table, advise the taxpayer that they may be taxed at a flat rate of 30%. If country of residence is on the Tax Treaty table, the taxpayer may be subject to a lower rate of tax or excluded from tax depending on the applicable tax treaty. If the account is on ACS, enter history code "TOI5,75,2269CSNT" . Income is from sale of real property located in the (such as a home), and the agent withheld taxes at the time of sale, CC IRPTR indicates income is from sale of real property located in the U.S. (such as a home), See Pub 519, U.S. Tax Guides for Aliens to determine source of income. Gain from the sale of U.S. real property is subject to U.S. tax. Verify if Form 8288, U.S. Withholding Tax Return for Disposition by Foreign Persons of U.S. Real Property Interests was filed. If no information is available, refer to IRM 21.8.5, Miscellaneous Foreign Investment In Real Property Tax Act (FIRPTA) Related Issues, or IRM 21.8.5.4, Form 8288-B, Withholding Certificate Background, for guidance. Income is from pensions distributions CC IRPTR indicates the pension distributions are from U.S. pension plans See Pub 519, U.S. Tax Guides for Aliens to determine source of income. Pension distributions have two components; the portion attributable to contributions and portion attributable to earnings. Each portion is sourced differently. Verify the country of residence. Refer to Pub 901, U.S. Tax Treaties for additional guidance on treaty information. Inform taxpayer they may be required to file a return. Follow the procedures in IRM 5.19.2.6.4.5.4, IMF Taxpayer Liable. CSCO employees - Send 2269C letter. If W-8BEN received input TC 590 cc 76 or TC 590 cc 26. (Route W-8BEN to AM per maildex) Income is from pension distributions CC IRPTR indicates the pension distributions are from foreign pension plans funded with contributions made while performing all services abroad See Pub 519, U.S. Tax Guides for Aliens to determine source of income. Pension distributions have two components; the portion attributable to contributions and portion attributable to earnings. Each portion is sourced differently. Inform taxpayer they are not required to file a return. ACS/ACSS employees: Input history RD90,,026 followed by TOC0,21,59026 For CSCO employees: Input TC 590 cc 76. Note: If the taxpayer had withholding taken, advise the taxpayer they need to file a return to receive a refund. Income is Non Employment Compensation (NEC) The NEC was reported on CC IRPTR, and the work was performed in the U.S. See Pub 519, U.S. Tax Guides for Aliens to determine source of income. Determine if tax treaty applies Verify the country of residence. Refer to Pub 901, U.S. Tax Treaties for additional guidance on treaty information. Advise the taxpayer they are required to a file a return. Income is Non Employment Compensation The NEC was reported on CC IRPTR, and the work was performed outside the U.S., See Pub 519, U.S. Tax Guides for Aliens to determine source of income. Advise the taxpayer to request that their employer send an amended Form 1099, and close the module as not liable. Update AMS of actions taken. For CSCO employees: Input TC 590 cc 76. For ACS/ACSS: Input history code RD90,,026, "TOC0,21,59026" . Income is from a state tax refund CC RTVUE indicates the taxpayer filed Schedule A and reported state income tax paid on the previous year's return. Advise the taxpayer they must file a U.S. return to report the state tax refund as income. Send the taxpayer a 2269C or another appropriate letter advising taxpayer to file Form 1040NR. ACS/ACSS employees: input OADT,75,2269CSNT. Income is from a state tax refund CC RTVUE indicates the taxpayer used the standard deduction on the previous year's return The taxpayer is not required to file. Take the following actions: ACS/ACSS employees: Input history RD90,,026 followed by TOC0,21,59026 CSCO employees: input TC 590 cc76 CC IRPTR indicates no income received but Indicates mortgage interest paid on real property located in the U.S., Send 2269C letter requesting explanation whether real property is a rental property or otherwise connected to a U.S. trade or business and update AMS narratives with actions taken. ACS/ACSS employees: Input RD90,,026 history followed by TOC0,21,59026. CSCO employees: Input TC 590 cc76 If the taxpayer is a U.S. citizen or U.S. resident living abroad, inform the taxpayer that U.S. citizens and U.S. residents are taxed on their worldwide income. Refer the taxpayer to Pub 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad. Send the taxpayer 2269C or any other appropriate letter. Update AMS of actions taken. If the account is on ACS, input history code TOI5,75,2269C.
U.S. Territories' Tax Systems
5.19.19.5 (08-07-2025) U.S. Territories' Tax Systems U.S. territories operate their own independent tax systems, which are partly based on the same tax laws as the U.S., but also incorporate tax laws particular to the territory. Below are the five U.S. territories: American Samoa Commonwealth of the Northern Mariana Islands Guam Puerto Rico U.S. Virgin Islands Individuals born in the U.S. territories are U.S. citizens, except in the case of American Samoa, where such individuals are U.S. Nationals who are treated as aliens for tax purposes. However, alien individuals who are bona fide residents of American Samoa, CNMI, Guam and Puerto Rico are subject to tax under IRC Section 1. See IRC 876.
U.S. Territorial Categories of Taxpayers
5.19.19.5.1 (08-07-2025) U.S. Territorial Categories of Taxpayers Special filing requirements apply to taxpayers who reside in and/or earn income in any U.S. territory. The types of tax return(s) and other tax forms a territorial resident must file depends upon several factors: Whether or not the taxpayer is a bona fide resident of the territory for the entire year. Whether the taxpayer is a U.S. citizen, resident alien, or nonresident alien. The source of the taxpayer's income (U.S., foreign, or territory-source). Individual tax laws of the territory. If the taxpayer has income from a territory, the taxpayer may either have to file a U.S. tax return or territorial tax return or both. Note: The American Jobs Creation Act of 2004 (AJCA) clarified and supplemented the U.S. tax rules dealing with U.S. territories for determining if a person is a bona fide resident of a territory and whether income is territory sourced or effectively connected with conduct of a territorial trade or business. Refer to IRC 937 and Pub 570, Tax Guide for Individuals With Income From U.S. Territories, for additional information. In order to determine whether a taxpayer is a bona fide resident of a U.S. territory, the taxpayer must satisfy the following three tests: Presence Test Tax Home Test Closer Connection Test Territorial residents may not use Form 2555 to claim the foreign earned income exclusion for their territorial income. EITC may not be claimed on a U.S. income tax return by a taxpayer whose main home, and the home of the qualifying child, is in a territory. All employers in the territories pay their social security tax and Medicare tax to the U.S. government on Form 941SS, Employer's QUARTERLY Federal Tax Return (American Samoa, Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, or the U.S. Virgin Islands), Form 941PR, Employer's Quarterly Federal Tax Return (Puerto Rico Version), or Form 944, Employer's Annual Federal Tax Return. See Pub 80, Federal Tax Guide for Employers in US Virgin Islands, Guam, American Samoa, and Commonwealth of the Northern Mariana Islands. Note: Employers in territories will no longer use Forms 941SS and 941PR after filing 2023 fourth quarter (202312) returns. These employers will file on Form 941 or Form 941 (sp) beginning with the 2024 first quarter (202403) tax period.
American Samoa
5.19.19.5.2 (08-07-2025) American Samoa American Samoa has its own separate, independent tax system. American Samoa's income tax code mirrors the Internal Revenue Code from tax year 2000, plus local edits. If the taxpayer is a U.S. citizen or resident alien and a bona fide resident of American Samoa during the entire tax year, they generally must file the following returns: An American Samoa tax return reporting their gross income from worldwide sources. A U.S. income tax return reporting income from worldwide sources but excluding income sourced within American Samoa. Amounts received for services performed as an employee of the U.S. or any of its agencies cannot be excluded. To exclude American Samoa source income attach a completed Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa, to the U.S. tax return. Taxpayers filing a U.S. income tax return and excluding American Samoa source income will not be allowed any deductions from gross income or credits against tax that directly or indirectly relate to excluded income. If the taxpayer is a bona fide resident of American Samoa during the entire tax year, but a nonresident alien of the U.S., they must file the following returns: An American Samoa tax return reporting worldwide income. A U.S. tax return reporting income from worldwide sources, excluding American Samoa source income other than amounts for services performed as an employee of the U.S. or any of its agencies. Note: To exclude income from sources within American Samoa, attach a completed Form 4563. Note: Individuals in the other territories do not qualify for the exclusion under IRC 931. See Pub 570, Guide for Individuals With Income From U.S. Possessions. Special rules apply to certain types of income and employment connected with American Samoa: U.S. government employees – If the taxpayer is employed in American Samoa by either the U.S. government or any of its agencies, or by the government of American Samoa, they are subject to tax by American Samoa on their pay from both governments. Wages and salaries paid to U.S. government employees are subject to U.S. federal income tax. These payments do not qualify for the exclusion of income from sources within American Samoa. If a taxpayer is a U.S. government employee and a bona fide resident of American Samoa, the taxpayer will report the wages from that employment on separate returns filed with both the United States and American Samoa. The taxpayer will file an American Samoa income tax return reporting all income that must be reported for territorial income tax purposes. The taxpayer will also file a U.S. income tax return reporting worldwide income, but excluding American Samoa-source income (except for U.S. government wages which are always included on a U.S. income tax return). Foreign tax credits may be available with respect to the taxpayer's U.S. income tax return for taxes paid to American Samoa. A taxpayer who is a bona fide resident of American Samoa and excludes income from sources in American Samoa, Guam or CNMI, cannot take a foreign tax credit of Form 1116 for taxes paid or accrued on the excluded income. Refer to Pub 514, Foreign Tax Credit for Individuals. If the taxpayer is not required to file a U.S. tax return but has income that is effectively connected with a trade or business in American Samoa, they must file Form 1040-SS with the U.S. Form 1040-SS, U.S. Self-Employment Tax Return, will be used to report their self-employment income to the U.S. and pay self-employment tax. Taxpayers who need to pay household employment taxes need to file Form 1040, Schedule H. To determine whether certain pensions, annuities, etc. are taxed and at what rate, see IRM 21.5, Account Resolution. Procedures to settle cases of double taxation are provided in bilateral agreements between the U.S. and the territories. See Pub 570, Tax Guide for Individuals with Income from U.S. Territories.
Commonwealth of the Northern Mariana Islands (CNMI)
5.19.19.5.3 (08-07-2025) Commonwealth of the Northern Mariana Islands (CNMI) The CNMI has its own separate independent tax system that mirrors the current Internal Revenue Code. In general, individuals with income from CNMI will file one return, with CNMI or the U.S. U.S. citizens who are bona fide residents of CNMI during the entire tax year must report their gross income from worldwide sources on their CNMI tax returns. If the taxpayer is a bona fide resident of CNMI during the entire tax year, they must file their tax return with CNMI. The taxpayer must include income from worldwide sources. In determining their total tax payments, they must include all income tax withheld by either CNMI or the U.S. They must include any credit for an overpayment of income tax to either CNMI or the U.S. They must pay any balance of tax due with their tax return. If the taxpayer properly files their return with, and fully pays their income tax to CNMI, then they are not liable for filing an income tax return with, or for paying to the U.S. for the tax year. Procedures to settle cases of double taxation are provided in bilateral agreements between the U.S. and the territories. See Pub 570, Tax Guide for Individuals with Income from U.S. Territories. If the taxpayer has income sources with CNMI and is a U.S. citizen or resident alien, but they are not a bona fide resident of CNMI during the entire tax year, they must file their income tax return with the U.S. The taxpayer will not be liable for filing an income tax return with, or paying tax to CNMI for the tax year. The taxpayer must send their U.S. income tax return to: Department of Treasury, Internal Revenue Service, Austin, TX 73301-0215 The taxpayer may also be required to attach Form 5074, Allocation of Individual Income Tax to Guam or Commonwealth of the Northern Mariana Islands, to the income tax return filed with the United States, if the taxpayer has income sourced in the CNMI. If the taxpayer has no U.S. filing requirement, but has income that is effectively connected with a trade or business in CNMI, they must file Form 1040-SS with the U.S. to report their self-employment income and, if necessary, pay self-employment tax. Taxpayers who need to pay household employment taxes need to file Form 1040, Schedule H, Household Employment Taxes. If the taxpayer must pay estimated tax, they should make their payment to the jurisdiction where they would file their income tax return if their tax year were to end on the date when their estimated tax payment is first due. The remaining quarterly payments of estimated tax are to be made where they made their first payment. Note: Estimated tax payments to either jurisdiction will be treated as payment to the jurisdiction with which they file the tax return. Joint payments of estimated tax are made to the jurisdiction where the spouse who has the greater estimated adjusted gross income would have to pay (if a separate payment were made). If the taxpayer makes their first payment early, follow the rules above to determine where to send it. If they sent it to the wrong jurisdiction, all later payments must be made to the jurisdiction to which the first payment should have been sent. Credit for income taxes withheld at the source (estimated tax payments and withholding credits) are to be taken into account in determining if the return results in a balance due or overpayment regardless of the jurisdiction in which they were received. Caution: Do not allow credit when the employer's address is outside of the U.S., Guam, CNMI or American Samoa. Once payments have been verified, credit the taxpayer's account for the substantiated amount using TC766. Mutual agreement procedures exist to settle issues where there is inconsistent tax treatment between the IRS and the taxing authorities of CNMI. The tax coordination agreements contain provisions allowing the competent authorities of the U.S. and the relevant territory to resolve, by mutual agreement, inconsistent tax treatment by the two jurisdictions. See Pub 570, Tax Guide for Individuals with Income from U.S. Territories.
Guam
5.19.19.5.4 (08-07-2025) Guam Guam has its own separate, independent tax system that mirrors the current Internal Revenue Code. In general, individuals with income from Guam will file one return, with Guam or the U.S. If a taxpayer is a bona fide resident of Guam during the entire tax year, they file their income tax return with Guam. This applies to all bona fide residents who are citizens, resident aliens, or nonresident aliens of the U.S. If a taxpayer properly files their return and fully pays their income tax to Guam, then they are not liable for filing an income tax return with, or paying tax to the U.S. on their income, other than self employment tax. If a taxpayer has income from sources within Guam and is a U.S. citizen or resident alien, and not a bona fide resident of Guam during the entire tax year: They must file their income tax return with the U.S. They must include income from worldwide sources on their U.S. return. The taxpayer may also be required to attach Form 5074, Allocation of Individual Income Tax to Guam or Commonwealth of the Northern Mariana Islands, to the income tax return filed with the United States, if the taxpayer has income sourced in Guam. They are not liable for filing an income tax return with, or paying tax to, Guam for the tax year. If the taxpayer is a nonresident alien of the U.S., who does not qualify as a bona fide resident of Guam for the entire tax year, they must file the following returns: A Guam tax return reporting only their income from sources within Guam. A U.S. Form 1040NR reporting U.S. source income according to the rules for a nonresident alien. The taxpayer may also be required to attach Form 5074, Allocation of Individual Income Tax to Guam or Commonwealth of the Northern Mariana Islands, to the income tax return filed with the United States, if the taxpayer has income sourced in Guam. Taxpayers who need to pay household employment taxes need to file Form 1040, Schedule H, Household Employment Taxes. Procedures to settle cases of double taxation are provided in bilateral agreements between the U.S. and the territories. See Pub 570, Tax Guide for Individuals with Income from U.S. Territories.
Commonwealth of Puerto Rico
5.19.19.5.5 (08-07-2025) Commonwealth of Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States. The major difference between Puerto Rico and the 50 states is that a bona fide resident of Puerto Rico is generally exempt from U.S. income tax on Puerto Rico source income. Puerto Rico's tax system is patterned after the U.S. tax system with the exception of differences to their tax rates and laws. See IRM 21.8.1.6, Puerto Rico. For additional guidance refer to Pub 570, Tax Guide for Individuals With Income From U.S. Territories. U.S. citizens who are also bona fide residents of Puerto Rico for the entire tax year generally must include income from worldwide sources on their Puerto Rico return. U.S. citizens who are also bona fide residents of Puerto Rico who receive wages paid by the U.S. government for working in Puerto Rico are subject to Puerto Rico tax and U.S. tax. These individuals are required to file both Puerto Rico and U.S. tax returns. However, since wages paid by the U.S. government for working in Puerto Rico are considered Puerto Rico sourced, these individuals will be able to claim a foreign tax credit on their U.S. tax return for income taxes paid to Puerto Rico. Procedures to settle cases of double taxation are provided in bilateral agreements between the U.S. and the territories. See Pub 570, Tax Guide for Individuals with Income from U.S. Territories. Citizens and residents of Puerto Rico with income from a trade or business from sources within Puerto Rico who do not file Form 1040, must file Form 1040SS or Form 1040SS (sp) to report their self-employment (SE) income and pay self-employment tax, if applicable. See IRM 21.8.1.6.5, Self-Employment Tax - Puerto Rico. Note: Form 1040PR is no longer used for tax-year 2023 filing and forward. Form 1040SS/1040SS (sp) is filed to: Report self-employment earnings and pay SE taxes Pay household employment taxes Claim excess Social Security tax withheld Pay any employee Social Security and Medicare tax on tips or group term life insurance Claim the Additional Child Tax Credit (ACTC) Taxpayers who need to pay household employment taxes need to file Form 1040, Schedule H, Household Employment Taxes, or Schedule H (PR), Household Employment Tax. ) U.S. government employees in Puerto Rico may qualify to claim the Child Tax Credit (CTC) and the Additional Child Tax Credit on their U.S. income tax return. Taxpayers living in Puerto Rico (other than U.S. government employees) may qualify to claim the Additional Child Tax Credit for tax-year 2022 and forward if they: Were a bona fide resident of Puerto Rico during the entire tax year. Paid Social Security and Medicare taxes withheld from wages or paid as self-employment tax. Had one or more qualifying children as defined in IRM 21.6.3.4.1.24.1. Child Tax Credit (CTC) - Qualifications, paragraph 1. IRC 933 allows individuals who are bona fide residents of Puerto Rico for a given tax year to exclude their Puerto Rico sourced income (except wages paid by the U.S. government for working in Puerto Rico) from their U.S. tax return for that tax year. IRC 933 allows the same exclusion to those individuals who have been bona fide residents of Puerto Rico for at least two years and later change their residence from Puerto Rico during a tax year. Under IRC 933, income received from Puerto Rico sources during residency in Puerto Rico is exempt from U.S. tax. However, income received for services performed in Puerto Rico as an employee of the U.S. government is not exempt from U.S. tax. Individuals who are bona fide residents of Puerto Rico for an entire tax year and only have Puerto Rico sourced income are not required to file a tax return in the U.S. Individuals who are bona fide residents of Puerto Rico during the entire tax year, but a nonresident alien of the U.S. must file the following returns: Puerto Rico tax return reporting worldwide sources. If the individual has U.S. sourced income on the Puerto Rico tax return they can claim credit against the Puerto Rico tax, up to the allowable amount for taxes paid. A U.S. tax return reporting income from worldwide sources, but excluding Puerto Rico source income other than amounts for services performed as an employee of the U.S. or any of its agencies. There is no amended return for a Form 1040PR / 1040SS / 1040SS (sp) return. If the taxpayer needs to amend Form 1040PR / 1040SS / 1040SS (sp), they can do so by sending in a corrected Form 1040PR / 1040SS / 1040SS (sp) with a notation across the top "CORRECTION" . The CTC is a credit against tax and claimed on Form 1040. EITC may not be claimed by a taxpayer whose main home, and the home of the qualifying child, is in a territory. Territorial residents may not use Form 2555 to claim the foreign income exclusion for their territorial income. For BMF international taxpayers: Employers in Puerto Rico pay their Social Security tax and Medicare tax to the U.S. government using Form 941PR or Form 944. Note: Puerto Rico employers will no longer use Form 941PR after filing 2023 fourth quarter returns. These employers will file on Form 941 or Form 941 (sp) beginning with the 2024 first quarter tax period.
U.S. Virgin Islands (USVI)
5.19.19.5.6 (08-07-2025) U.S. Virgin Islands (USVI) The U.S. Virgin Islands (USVI) has its own separate, independent tax system that mirrors the current Internal Revenue Code. In general, individuals with income from USVI will file one return, with USVI or the U.S. IRC 932(c) allows an individual who has been a bona fide resident of the Virgin Islands for the entire year to file an annual tax return and pay the entire tax liability to the Virgin Islands. Taxpayers who are U.S. citizens/residents but not bona fide residents of the USVI during the entire year, and have income from sources in the Virgin Islands or income effectively connected with the conduct of a trade of business in the Virgin Islands may be required to file identical returns in both the U.S. and the Virgin Islands. taxpayers may complete Form 8689 to determine the amount of tax payable to the Virgin Islands when it is determined they need to file both returns. Self-employed individuals are subject to federal SE tax, whether they file Form 1040 with the IRS or not. If the taxpayer is not required to file U.S. Form 1040 with the IRS, they must still file Form 1040-SS with the IRS to report and pay tax on self-employment income earned worldwide. The Form 1040-SS is a combination of Form 1040 Schedules C, F, SE, and Form 8812. Citizens and residents of the U.S. Virgin Islands do not pay income tax to the U.S. on earned income while they are in the U.S. Taxpayers who need to pay household employment taxes need to file Form 1040, Schedule H, Household Employment Taxes. Procedures to settle cases of double taxation are provided in bilateral agreements between the U.S. and the territories. See Pub 570, Tax Guide for Individuals with Income from U.S. Territories. In addition, USVI taxpayers are not entitled to claim the Additional Child Tax Credit (ACTC) from the IRS. Individual taxpayers may claim estimated tax payments or credit elect on the return they are required to file, regardless of the jurisdiction (U.S. or Virgin Islands) in which the return was filed. See IRM 5.19.19.5.6.3, U.S. Virgin Island Cover Over, for additional information on "cover over" .
U.S. Virgin Islands Bona Fide Residents With Self-Employment Income
5.19.19.5.6.1 (08-07-2025) U.S. Virgin Islands Bona Fide Residents With Self-Employment Income Generally, under IRC 1401 and IRC 1402, U.S. citizens and resident aliens who are bona fide residents of the USVI must pay self-employment tax on their net earnings from self-employment of $400 or more, regardless of where the income is earned. Bona fide residents of the USVI who do not file a U.S. Form 1040 must file Form 1040-SS, U.S. Self Employment Tax Return, with the United States to report their self-employment income to the IRS. Form 1040-SS resembles a combination of Form 1040 Schedules C, F, SE and Form 8812. It also has the provision in Part I, line 4 to enter the total tax from Schedule H. Form 1040-SS is now used for more than just reporting self-employment income and paying SE tax. Bona fide residents of the USVI do not generally pay income tax to the U.S. on income earned while in USVI. Their income tax return is filed with the government of the U.S. Virgin Islands, while their SE tax must be reported to the IRS.
Taxpayers Who Are Not Bona Fide Residents of the USVI
5.19.19.5.6.2 (08-07-2025) Taxpayers Who Are Not Bona Fide Residents of the USVI U.S. citizens/residents who derive income from USVI sources or effectively connected with a USVI trade or business and are not USVI bona fide residents must file identical income tax returns with the IRS and USVI and apportion the income tax due to each on Form 8689. The original tax return is filed with the U.S. and a copy of the U.S. return, including all attachments, forms and schedules, is filed with USVI Bureau of Internal Revenue by the due date for filing Form 1040. If there is a joint return and one spouse is a bona fide resident of USVI and the other spouse is not, the taxpayers should file the return in the jurisdiction of the spouse who had the highest adjusted gross income for the tax year. The British Virgin Islands fall within the jurisdiction of the United Kingdom and are in no way connected with the U.S. or its political subdivision or territories. Any returns or inquiries received with addresses from these islands should be handled as an international case. Taxpayers must submit Form 8689, Allocation of Individual Income Tax to the U.S. Virgin Islands. Using the form prevents the allocation amount from being more than the amount of payments/credits paid to USVI. The credit for taxes paid to USVI is nonrefundable.
U.S. Virgin Islands Cover Over
5.19.19.5.6.3 (08-07-2025) U.S. Virgin Islands Cover Over Under IRC 932 (c)(2), a bona fide resident of the U.S. Virgin Islands is generally required to report worldwide income to the U.S. Virgin Islands. A bona fide resident of USVI who reports and pays tax on their worldwide income to the U.S. Virgin Islands is generally not required to file a return with the IRS. A bona fide resident of the U.S. Virgin Islands who has income tax withheld and deposited with the IRS can file a USVI tax return and can claim credit on that return for the tax withheld and paid to the IRS. The amount of U.S. withholding that the U.S. Virgin Islands has allowed their taxpayers to use as a credit can be paid over to USVI through the "cover over" process. For additional information regarding "cover over" , see IRM 21.8.1.7.4, U.S. Virgin Islands Cover Over Processing - Phase One, and following subsections. Note: The transfer of credits to satisfy the U.S. Virgin Islands tax liability is permissible even when the U.S. refund statute has expired. A "cover over" of U.S. withholding is not a refund. Taxpayers who are not bona fide residents of the USVI are allowed on their U.S. income tax return a credit elect or estimated tax credit for taxes withheld by U.S. Virgin Islands in excess of USVI income tax liability. The procedure relating to the government-to-government cover over of those taxes is contained in IRM 21.8.1.7.4, U.S. Virgin Islands Cover Over Processing - Phase One. Taxpayers who are bona fide residents of the USVI are allowed on their USVI income tax return a credit elect or estimated tax credit for taxes withheld by the United States in excess of U.S. income tax liability. The procedure relating to the government-to-government cover over of those taxes is contained in IRM 21.8.1.7.4, U.S. Virgin Islands Cover Over Processing - Phase One.
Tax Treaties
5.19.19.6 (08-07-2025) Tax Treaties The U.S. Congress has ratified many income tax treaties with foreign countries. These treaties may reduce the rate of tax on U.S. source income or may exempt certain U.S. source income from U.S. taxation for the nonresident alien who is a resident of the treaty country. Any income tax treaties provide rules allocating taxing rights on compensation for personal services, different articles apply to independent and dependent services, and there is usually a separate article for personal services performed by government employees. Refer to Publication 901, U.S. Tax Treaties. The primary purposes of the tax treaties between the U.S. and another country is to avoid international double taxation and prevent tax avoidance and evasion. Treaties define: The type of income covered Who has the primary right to tax Under what circumstances taxation can occur Refer to the IRS.gov Tax Treaty Tables page for additional information and links to tax treaties between the U.S. and particular countries.
Foreign Earned Income Exclusion, Foreign Housing Exclusion, and Foreign Housing Deduction, and Foreign Tax Credits
5.19.19.7 (08-07-2025) Foreign Earned Income Exclusion, Foreign Housing Exclusion, and Foreign Housing Deduction, and Foreign Tax Credits All U.S. citizens and resident aliens living in foreign countries are subject to the same U.S. tax laws as persons living in the U.S. These taxpayers may elect to exclude some or all of their income earned in the foreign country if they meet the qualifications. Listed below are five important facts: The Foreign Earned Income Exclusion: Citizens and resident aliens who live and work abroad may be able to exclude all or part of their foreign salary or wages from gross income when filing their U.S. federal income tax return. They may also qualify to exclude or deduct certain foreign housing costs. General Rules: To qualify for the foreign earned income exclusion, and exclusion or deduction of foreign housing costs, a U.S. citizen or resident alien must have a tax home in a foreign country and income received for personal services performed in a foreign country, otherwise known as foreign earned income. The taxpayer must also meet one of two tests: the bona fide residence test or the physical presence test. The Exclusion Amount: The amount of foreign earned income exclusion is adjusted annually for inflation. The amount of foreign costs excluded or deducted is adjusted for specific geographic locations. Refer to Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, for the maximum exclusion per qualifying person. Claiming the Exclusion: Taxpayers claiming the foreign earned income exclusion and the foreign housing exclusion or deductions must use Form 2555, Foreign Earned Income and attach it to Form 1040. Taking Other Credits or Deductions: Once the foreign earned income exclusion is chosen, a foreign tax credit or deduction cannot be claimed for taxes properly allocable to the excluded income. In the case of a joint return, each qualifying spouse may elect to exclude their foreign earned income. Each spouse must file a separate Form 2555. Refer to the instructions of Form 2555 for the maximum amount of foreign earned income that may be excluded, and the maximum amount of housing costs that may be excluded or deducted for the given tax year. Taxpayers who paid or accrued foreign taxes to a foreign country on foreign source income, and are subject to U.S. tax on the same income may be able to take either a credit or an itemized deduction for those taxes. If taken as a deduction, foreign taxes reduce U.S. taxable income; if taken as a credit, foreign income taxes reduce the tax liability. In some instances nonresident aliens may also claim a credit for income tax paid to a foreign country on foreign source income that is effectively connected with a trade or business in the U.S., using Form 1116 and Form 1040-NR. U.S. citizens or resident aliens may avoid double taxation by electing, under IRC 901(a), to claim the foreign tax credits using Form 1116. IRC 164(a)(3) allows a U.S. citizen or resident alien who itemizes to claim a deduction on Schedule A for foreign income taxes paid or accrued instead of taking the foreign tax credit. Taxpayers excluding income from sources within certain territories of the U.S. may not take the foreign tax credit for taxes on the excluded income on Form 1116. A taxpayer who is a bona fide resident of American Samoa and excludes income from sources in American Samoa, Guam or CNMI, cannot take a credit for the taxes paid or accrued on the excluded income. Refer to Publication 514, Foreign Tax Credit for Individuals.
IMF International Individual Tax Returns
5.19.19.8 (08-07-2025) IMF International Individual Tax Returns An international return is one consisting of Forms 1040 with one or more of the following forms attached: Form 1116, Foreign Tax Credit, (individual, estate or trust), and/or nonresident alien individual, nonresident alien trust, nonresident alien estate. Note: Reassign all claims for the foreign tax credit to IMF International. Send through the Correspondence Imaging System (CIS) via IMF International, or mail to: 2970 Market Street, 1 D08.113, Philadelphia, PA 19104. Form 2555, Foreign Earned Income Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa Form 5074, Allocation of Individual Income Tax to Guam or Commonwealth of the Northern Mariana Islands (CNMI) Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests Form 8689–A, Allocation of Individual Income Tax to the Virgin Islands Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax Form 8833, Treaty-Based Return Position Disclosure Under Section 114 or 7701(b) Form 8840, Closer Connection Exception Statement for Aliens Form 8843, Statement for Exempt Individuals and Individuals with a Medical Condition Form 1040 with a foreign address Form 1040C, U.S. Departing Alien Income Tax Return Form 1040NR, U.S. Nonresident Alien Income Tax Return Form 1040SS, U.S. Self Employment Tax Return Form 1040SS (sp), U.S. Self Employment Tax Return(Spanish) Note: For tax-year 2023 and forward, Form 1040PR will no longer be used. Puerto Rico citizens and residents will file Form 1040SS, or Form 1040SS (sp) instead.
IRS Individual Taxpayer Identification Number (ITIN)
5.19.19.8.1 (08-07-2025) IRS Individual Taxpayer Identification Number (ITIN) For taxpayers who do not qualify for a SSN, but need to file a tax return, IRC 6109 allows for the creation of Individual Taxpayer Identification Numbers (ITIN). This section provides guidelines on how the ITIN is used and how to apply for an ITIN. ITINs are used for tax purposes only, and are not intended to serve any other purpose. ITINs are issued to help individuals comply with the U.S. tax laws and to provide a means to process accounts, tax returns and payments for those that are not eligible for an SSN. Issuance of an ITIN does not entitle the recipient to social security benefits, and it does not change their immigration status or their right to work in the U.S. The ITIN is not valid for identification purposes outside the U.S. tax system. To obtain an ITIN, an individual must complete Form W-7, Application for IRS Individual Taxpayer Identification Number. Note: All ITIN applications must have an original valid U.S. federal income tax return attached including any supporting documentation.
U.S. Nonresident Alien Income Tax Return
5.19.19.8.2 (08-07-2025) U.S. Nonresident Alien Income Tax Return Form 1040NR is generally filed by nonresident aliens who have certain types of U.S. source income or who are engaged in a U.S. trade or business. The Master File Tax (MFT) code is 30, and the document locator number (DLN) will start with 20, and contains document code 72 or 73. Form 1040-NR, U.S. Nonresident Alien Income Tax Return is used by all nonresident alien individuals whether or not engaged in trade or business within the United States. Form 1040NR is also filed by a fiduciary of a foreign trust or foreign estate. Note: The form can be viewed on CC TRDBV/RTVUE.
Self-Employment Tax
5.19.19.8.3 (08-07-2025) Self-Employment Tax Generally, under IRC 1401 and IRC 1402, U.S. citizens and resident aliens, including those living abroad, must pay self-employment tax on their net earnings from self-employment of $400 or more. Residents of U.S. territories who are not U.S. citizens are also subject to self-employment tax. The U.S. has social security agreements ("Totalization Agreements" ) with many countries to eliminate taxes due under two social security systems. Under IRC 1401(c) self-employment income is exempt from self-employment tax by operation of a Totalization Agreement if such self-employment income is subject to the social security system of a foreign country. Under a Totalization Agreement, a worker generally pays social security and Medicare taxes only to the country in which they are working. To be exempt from self-employment tax, a self-employed taxpayer working in a country with which the U.S. has a Totalization Agreement must attach a "Certificate of Coverage" to their U.S. income tax return verifying that their income is subject to social security and Medicare coverage in a foreign county. A Certificate of Coverage shows that the U.S. has a Totalization Agreement in effect with the specific country where the taxpayer is working. If a taxpayer is unable to get such a statement from the foreign country, the taxpayer may submit a statement issued by the U.S. Social Security Administration stating that the taxpayer's wages are not covered by the U.S. Social Security system. When a U.S. employer sends a U.S. citizen or resident employee to work in a foreign country for less than five years, the employee typically remains covered by the U.S. Social Security system. U.S. citizens and residents of Puerto Rico working in the U.S. or in a U.S. territory as employees of a foreign government, an instrumentality wholly owned by a foreign government, or an international organization, are also subject to self-employment tax on their compensation. However, if the taxpayer also worked outside of the U.S. and the territories as an employee of a foreign government, an instrumentality of such government, or an international organization, only the portion of the income earned in the U.S. (or in the territories) is subject to self-employment tax. Ministers and members of religious orders who have not taken a vow of poverty are also subject to self-employment tax on the income they earn for ministerial services, unless the IRS grants an exemption or the taxpayer is subject to the social security laws of a foreign country under a Totalization Agreement.
BMF/NMF International Tax Returns
5.19.19.9 (08-07-2025) BMF/NMF International Tax Returns Employers in the U.S. territories are required to withhold Social Security and Medicare taxes from their wage earning employees. Employers in the U.S. territories are also required to make Federal Tax Deposits (FTD); refer to Document 6209, Section 10 for the FTD requirements. See the list below for international BMF returns: Corporate income tax returns filed on Form 1120, Form 1120-C with Form 1118, Foreign Tax Credit - Corporations, Form 1120-F, Form 1120-FSC, and Form 8279 (FSC election) Employment tax returns filed by U.S. territory businesses on Forms Form 940/ 940(sp), Forms 941 / 941(sp), Forms 944 / 944(sp) and Forms 943 / 943 (sp) Foreign withholding tax returns filed on Form 1042, Form 8804, and Form 8288 Foreign estate tax returns filed on Foreign and Possession Form 706 and Form 706-NA Foreign trust and estate tax returns filed on Form 1040NR (Fiduciary), Form 3520, and Form 3520-A Foreign exempt organization tax returns filed on Foreign and Possession Form 990, Form 990-PF and Form 990-T with Form 1118, Form 5712 and 5712-A, Form 5735 and Schedule P Foreign information statements filed on Form 8805 and Form 8813
Form 1042 and Form W-8 Series Withholding
5.19.19.9.1 (08-07-2025) Form 1042 and Form W-8 Series Withholding To identify the types of income subject to withholding at the source; who is responsible for withholding the tax and the correct withholding tax rate, refer to the following: Pub 515, Withholding of Taxes on Nonresident Aliens and Foreign Entities Pub 901, U.S. Tax Treaties
Other BMF Returns
5.19.19.9.2 (08-07-2025) Other BMF Returns Corporate Tax Returns - every foreign corporation must file Form 1120-F, U.S. Income Tax Return of a Foreign Corporation, or Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation, if the corporation: Engaged in a trade or business in the U.S. at any time during the taxable year. Had income from U.S. sources that is not effectively connected with the conduct of a trade or business within the U.S. Had income that is effectively connected with the conduct of a trade or business within the U.S. Overpaid U.S. income tax and is requesting a refund. Form 1065, U.S. Return of Partnership Income, is information only. There is no tax reported on this form. Income, losses, expenses, and operation of a partnership are reported on this form. Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, is filed by a U.S. person that is engaged in certain transactions with foreign trusts including: The creation of a foreign trust by a U.S. person. A transfer of any money or property, directly or indirectly, to a foreign trust by a U.S. person. Reporting the death of a U.S. person if they were treated as an owner of a foreign trust, and reporting any portion of a foreign trust that was included in the decedent's estate. A distribution from a foreign trust received by a U.S. person.
Case Processing
5.19.19.10 (08-07-2025) Case Processing This section provides information on processing ACS cases. The IRS is only able to collect from taxpayers residing in foreign countries to the extent provided for in tax treaties. See IRM 5.19.19.10.2, Other International Programs/Sources Available, which contains information on Mutual Collection Assistance Requests (MCAR). Do complete research and work the case to completion addressing and closing all issues at the same time. If contacting the taxpayer by telephone or in writing, wait the allotted time you have given the taxpayer to respond before taking the next appropriate follow-up or closing action. Completing locator research on international cases requires you to be more creative in order to locate the taxpayer and/or their assets. You are still required to conduct all required research, such as CC IRPTR, RTVUE, TRDBV and AMDIS, but you should not limit your research to CFOL and Accurint. All research must be completed simultaneously when completing research, to avoid delay of possible contact. Each case is different and the required research is based on the specific issues of the case. All information collected by the IRS with regard to collecting a tax liability is protected by IRC 6103, any disclosure must meet IRC 6103 standards. Ensure any disclosure you make of taxpayer return information conforms to IRC 6103(k)(6) (e.g., name, address and Taxpayer Identification Number to a credit reporting agency to obtain a full credit report). Analyze each such disclosure on a case by case basis to ensure the disclosure is necessary to obtain the desired information (e.g., a report from the National Asset Locator Tool or a credit report), as follows: Is the specific return information disclosed limited to the minimum information necessary to obtain the report? Is the return information from our balance due or lien files? Is the information in the desired report not otherwise reasonably available from other sources? Before initiating any third party contact, ensure that the taxpayer and authorized representative have been notified in writing within the last year and more than 46 days earlier (unless verbal authorization has been obtained and documented). See IRM 5.19.5.14, Notification of Third Party Contact.
Locator Sources
5.19.19.10.1 (08-07-2025) Locator Sources This section will be beneficial to the campus collection employees when attempting to contact or locate the taxpayer and/or third parties, etc. This section will also provide the employees with locator services available to use when working international accounts. This section describes the various sources available to campus collection employees to facilitate locating international taxpayers and their assets and also provides procedures to help protect taxpayer privacy when using these sources. As with a domestic account, you should always attempt resolution using internal sources available to you. Refer to IRM 5.19.5.8.1, I2 - Attempts to Locate Taxpayer - Overview. If there are usable levy sources, issue an LT11 if the PRI FNL NOT field is blank, otherwise issue levy per IRM 5.19.5.8.2.1, I4 - Routine Processing and IRM 5.19.4.3.1, Pre-levy Requirements - E2 Processing. In addition, if there is more than one levy source, issue LP61 and LP62 to all other sources. Do not issue LP61 and LP62 to sources on which ACS cannot issue a levy. You must perfect any invalid levy addresses prior to issuing the levy, unless the address is outside of the U.S. If there are no usable levy sources, but an unused phone number, you must make the outgoing call, if the time zone warrants. If not, send case to Contact. If contact is made, follow IRM 5.19.1, Balance Due for BalDues and IRM 5.19.2, Individual Master File (IMF) Return Delinquency, for DelRets. In addition to the internal locator services, such as CFOL, IDRS, and the use of third party letters, there are external sources that can be used. Some of these sources may be required depending on specific case issues. If attempting to locate an address or phone number for the taxpayer, search appropriate internet sites such as 411.com if the account has a domestic address, 411.ca if the account has a Canadian address or Searchsystems.net if the account has a foreign address. Use of asset and locator services research (Accurint) is required to verify real property ownership for IA or CNC (unable to locate (UTL), unable to contact (UTC) and hardship) closures. This research tool is also required to locate taxpayers and conduct neighbor checks on CNC UTL/UTC closures. Check and verify real property ownership on these cases for possible transfer to the field (TFRO). At a minimum, use the available service for efficient asset and locator services searches. Perform all searches by social security number (SSN), when available. For best results; a unique name search can be utilized if no data is found via an SSN search. After you conduct appropriate research and taxpayer ownership remains unclear, perform a property search by address; note other possible addresses, potential for property owned in other states, etc. in the case analysis. Perform property deed and property assessment searches. When researching use File Reference Int'l. One of the most powerful tools for gathering information about an individual or business is the internet. The information found on the internet can assist IRS employees in locating taxpayers and their assets. The decision regarding whether or not you should use the internet to locate taxpayers and their assets must be based on the particular aspects of the case, just as you would make any other decision to use any other collection tool. You can use the internet/intranet to help you locate the taxpayer or their assets.
Other International Programs/Sources Available
5.19.19.10.2 (08-07-2025) Other International Programs/Sources Available Mutual Collection Assistance Requests (MCAR) - The U.S. has entered into a number of bilateral tax treaties that contain broad provisions for assistance in collection. We currently have six mutual collection income tax treaty partners: Canada Denmark France Japan The Netherlands Sweden Note: The MCAR program is worked by field revenue officers in international groups, however, there may be times when a call may be received inquiring about the program. If a call is received contact the MCAR Coordinator immediately. The MCAR Coordinator can be found at the following website MCAR Coordinators . Campus Collection does not have the authority to initiate an outgoing MCAR, however, both international and domestic revenue officers who are trying to reach income or assets located in MCAR treaty partner countries can generate outgoing MCAR requests. Central Withholding Agreements - The Central Withholding Agreement (CWA) program is a pre-filing program for nonresident alien athletes and entertainers performing independent personal services in the U.S. who wish to enter into a withholding agreement. The purpose of the program is to foster compliance and give the nonresident alien athletes and entertainers the opportunity to more accurately project their anticipated tax liability by entering into a CWA. The Treasury Enforcement Communications System (TECS) is a database maintained by the Department of Homeland Security that is used extensively by the law enforcement community. It contains information about individuals and businesses suspected of, or involved in, violations of federal law. TECS can provide useful information about taxpayers so employees can attempt taxpayer contact or locate asset information. Revenue officers can request that taxpayers with delinquent balances be entered into TECS, and the IRS will then receive information when those taxpayers travel into the U.S. for business, employment, or personal reasons. Employees must help maintain the TECS database by requesting that appropriate taxpayers be entered into TECS or be deleted from TECS. Note: It is important for each employee to understand the benefits the IRS derives from TECS because such understanding should ensure that each employee will do their part in maintaining TECS. The taxpayers in TECS are primarily international taxpayers because the cases usually concern persons who reside abroad. However, domestic taxpayers may also be entered into TECS. Again, as with the above mentioned programs, before sending an account to the queue consider specifics of the case, or seek guidance from the international TECS Coordinator as to whether the account should be placed on TECS. For additional information on TECS, access the TECS page of the Knowledge Management website at TECS Knowledge Management Website and IRM 5.1.18.13, TECS.
International Account Time Frames
5.19.19.10.3 (08-07-2025) International Account Time Frames Consideration must be given to taxpayers who live abroad. This section provides guidance on time frames for international taxpayers. Based on their location, additional time must be allowed for mailing and processing payments, returns and correspondence. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Allow 60 day for all LT/OL or LP letters issued to the taxpayer(s) or third parties, if the account has an international address. Note: When a Spanish letter is needed on an IMF account, the Limited English Proficiency (LEP) indicator (viewable on CC ENMOD with a value of 001), will be used to generate the Spanish version of the letter. The LEP indicator is set by Masterfile and is systemically passed to the ACS system. For BMF accounts, it will still be necessary to check the box to issue letters in Spanish when warranted. An additional 10 days beyond the deadline must be given for all callbacks. Based on the location of the taxpayer, allow up to 25 days for mailing and processing. If the taxpayer promises to mail documents, provide twelve days beyond the established deadline if the taxpayer is now residing within the U.S.; if they reside abroad (foreign address), provide 45 days beyond the deadline. If a scheduled follow up date expires, correspondence or a telephone call is received, review the case at each event and take all appropriate actions to ensure the case is processed in a timely manner.
Levy Action on International Accounts
5.19.19.10.4 (08-07-2025) Levy Action on International Accounts This section contains information on issuing Notices of Levy on international accounts for ACS. IRC 6331 authorizes levies to collect delinquent tax. Unless specifically exempt, any taxpayer property or rights to property can be levied. However, the IRS may generally only levy when the following requirements are met: The IRS assessed the tax and sent the taxpayer a notice and demand for payment. The taxpayer has neglected or refused to pay the tax within 10 days after notice and demand. The IRS sent the taxpayer a Final Notice of Intent to Levy and Notice of Your Right to a Hearing at least 30 days before the levy. Before initiating any third party contact, ensure that the taxpayer and authorized representative have been notified in writing within the last year and more than 46 days earlier (unless verbal authorization has been obtained and documented). See IRM 5.19.5.14, Notification of Third Party Contact. No Collection Due Process (CDP) request is filed in response to the Final Notice of Intent to Levy and Notice of Your Right to a Hearing, or A CDP hearing is conducted sustaining the proposed levy. See IRM 5.19.4.2, Levy Enforcement Action and Filing of Notices of Federal Tax Lien Overview, for an explanation of levies and liens. See IRM 5.19.4.3.1, Pre-Levy Requirements - E2 Processing, for requirements to consider before issuing a levy. Do not issue levies to foreign governments, United Nations employees, or companies/banks with addresses outside the U.S. It does not matter where the taxpayer resides, but where the levy source is located. Also, never send levies to another country's embassies, consulates, or missions, even if they are within U.S. borders. Note: There are instances where funds held offshore can be reached by a levy if the bank has a branch in the U.S. or a territory of the United States. Refer to IRM 5.21.3.3, Levy on a Domestic Branch of a Financial Institution. Example: The taxpayer has an account at ABC Bank & Trust located in Japan. ABC Bank & Trust is a U.S. based financial institution; a levy can be issued to the bank. In addition to (2) above, see IRM 5.19.4.3.7, Choosing a Levy Source. Ensure there is a levy source available for ACS to send; see IRM 5.19.4.3.7. If there is no levy source available, do not issue LT11. Check Information Returns Program (IRP) for a possible viable levy source. Determine if the taxpayer is employed or has an open account. If a levy source is found that is viable then issue the levy. Document AMS of actions taken and results. If the taxpayer is in the military and there is no Combat Zone freeze on the account, then issue a levy. Make sure the levy is sent to the correct address based on the taxpayer's status and branch of service. See IRM 5.19.4.3.4, Levy Determination - (E3/E4 Processing). You must verify all levy source information and confirm each levy source on ACS when the confirmed indicator is N or when the confirmed indicator is Y and the confirmed cycle field "CONF CYC" has not been updated in the last 13 cycles. Delete levy sources that are no longer valid or are duplicates. (See IRM 5.19.4.4.8(1) and (2), Next Action After Levy Response, for procedures and levy deletion codes.) Once you have determined enforcement action is appropriate, see IRM 5.19.4.3.12, Issuing Levies.
NFTL Filing on International Accounts
5.19.19.10.5 (03-17-2023) NFTL Filing on International Accounts This section provides guidance when filing notices of federal tax lien on international or U.S. territorial accounts. The statutory federal tax lien arises when the tax is assessed, the taxpayer is given notice and demand for payment, and the taxpayer has neglected or refused to pay the tax. The purpose of filing the Notice of Federal tax Lien (NFTL) is to protect the government's right of priority against certain third parties, typically a purchaser, holder of a security interest, mechanic's lien holder or judgment lien creditor. If the NFTL will not be filed, document the reason for not filing on AMS, such as: Procedural reasons, i.e. no pre-filing (CP504 or LT11) notice has been issued or taxpayer filed bankruptcy. Transferring the account to the field due to an associated case. Note: If no pre-filing notice was sent, issue the ACS Letter 39. If on the phone with the taxpayer/power of attorney, inform them the letter will be issued and the NFTL will be filed 60 days after the issuance of letter. Refer to IRM 5.19.4.5, Notice of Federal Tax Lien Determinations and Filing Criteria, and IRM 5.19.4.6, Procedures for Filing NFTL, for guidance. See IRM 5.19.4.5.3.2, Filing Criteria, to determine when to file a NFTL. A NFTL cannot be filed outside the U.S. or U.S. territories. On international cases the NFTL must be filed at: LOCATION REAL PROPERTY PERSONAL PROPERTY District of Columbia Office of the Recorder of Deeds of District of Columbia Office of the Recorder of Deeds of the District of Columbia If the taxpayer owns property within the U.S. or U.S. territories and the location is known, then a second NFTL can be filed in that location.
Recalculation of the Collection Statute Expiration Date (CSED)
5.19.19.10.6 (08-07-2025) Recalculation of the Collection Statute Expiration Date (CSED) IRC 6503(c) suspends the statutory period for collection of an assessed tax for taxpayers residing outside of the U.S. and territories. It provides a suspension of the collection statute of limitations after assessment during the period the taxpayer is outside of the U.S. for a continuous period of at least six months. The taxpayer will be deemed to be absent from the United States for purposes of this section if they are generally and substantially absent from the United States, even though they make casual temporary visits during the period. See Treas. Reg 301.6503(c)–1(b). If a situation arises and there is a need to extend the CSED, complete Form 8620, Statute Recalculation IRC 6503(c), and forward to the Collection Case Processing Unit. Since IRC 6503(c) automatically suspends the statute, taxpayer signature is not needed on Form 8620. Complete Form 8620 to correct the CSED within the guidelines set under IRM 5.1.19.3.7, Taxpayer Living Outside the U.S., when working international accounts (not territorial ones), and the CSED is about to expire.
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