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Part 1. Organization, Finance and Management

Chapter 13. Statistics of Income Processing

Section 3. Document Management (Cont. 1)

1.13.3  Document Management (Cont. 1)

1.13.3.2 
Controlling Documents in the Corporation Programs

1.13.3.2.3 
Special Projects

1.13.3.2.3.4  (03-01-2008)
Forms 5472 Study

  1. The sample of documents in the Forms 5472 Study is edited at the same time the SOI units edit the parent corporation returns. It is a biennial project, scheduled during even SOI study years (for example, SOI Year 2004, 2006, 2008, etc.).

1.13.3.2.3.5  (03-01-2008)
Forms 8858 Study

  1. Beginning with the SOI Year 2006 Corporation Study, SOI will not photocopy Forms 8858. SOI edits "paper-filed" Forms 8858 from scanned images.

1.13.3.2.4  (03-01-2008)
Partnership Returns of Income

  1. This section provides instructions to centers for controlling Forms 1065, Partnership Returns of Income; Forms 1065-B, Electing Large Partnerships; and, related documents, for the SOI Year 2007 Program.

  2. In this study the Enterprise Computing Center - Martinsburg (ECC-MTB) extracts and reformats partnership data from the Business Master File (BMF). It also does pre-edit processing on the data. ECC-MTB transmits the reformatted data to the Ogden Submission Processing Center where SOI programmers load it into the SOI Partnership on-line editing application. Monthly transmissions begin in June (Cycle '24) and continue every four cycles thereafter until the end of December (through Cycle '52). Beginning in 2008, ECC-MTB will produce weekly files.

  3. Electronically filed partnerships fall into two categories.

    1. Since January 1, 2001, all large partnerships (i.e., partnerships with over 100 partners) are required to file electronically. These returns are transmitted to the Ogden Submission Processing Center for processing.

    2. During SOI sampling each cycle, ECC-MTB extracts a file of electronically filed partnership records from the Tax Return Database (TRDB). ECC-MTB transmits the TRDB partnership data file to Ogden, where the information is loaded into the SOI Partnership edit application database. ECC-MTB also transmits via EDT a print file containing transcript information about the electronically filed partnership returns. The SOI edit unit uses the transcript information to resolve issues with the electronically filed partnership returns data. In 2007, SOI replaced these transcripts with "graphic" prints, which SOI then scanned.

    3. In 2007, partnerships also began transmitting XML files, also called MeF partnership returns, a method that replaces the original, or legacy, method of filing electronically. SOI is rendering all of these MeF returns into images, which the SOI editors view in a split-screen environment when editing.

  4. The editing of SOI partnership returns occurs at both the Cincinnati and Ogden Submission Processing Centers.

  5. Submission processing center SOI control units hold the selected partnership documents. They are responsible for ensuring that all of the attachments are associated with either a "parent" Form 1065, U.S. Return of Partnership Income, or Form 1065-B, U.S. Return of Income for Electing Large Partnerships. Attachments include the following:

    • Schedule D (Form 1065), Capital Gains and Losses.

    • Schedule F (Form 1040), Profit or Loss From Farming.

    • Schedule M-3 (Form 1065), Net Income (Loss) Reconciliation for Certain Partnerships.

    • Form 3468, Computation of Investment Credit.

    • Form 3800, General Business Credit.

    • Form 4562, Depreciation and Amortization.

    • Form 4797, Sales of Business Property.

    • Form 5884, Work Opportunity Credit.

    • Form 6765, Credit for Increasing Research Activities.

    • Form 8820, Orphan Drug Credit.

    • Form 8824, Like-Kind Exchange.

    • Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation.

    • Form 8844, Empowerment Zone Employment Credit.

    • Form 8845, Indian Employment Credit.

    • Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips.

    • Form 8847, Credit for Contributions to Selected Community Development Corporations.

    • Form 8861, Current Year Welfare to Work Credit.

    • Form 8864, Biodiesel and Renewable Diesel Fuels Credit

    • Form 8865, Return of U.S. Persons with Respect to Certain Foreign Partnerships ( See IRM 1.13.3.2.3.4 for more details).

    • Form 8874, New Markets Credit

    • Form 8881, Credit for Small Employer Pension Plan Startup Costs

    • Form 8882, Credit for Employer-Provided Child Care Facilities and Services

    • Form 8896, Low Sulfur Diesel Fuel Production Credit

    • Form 8903, Domestic Production Activities Deduction

  6. National Office will notify Cincinnati and Ogden edit unit managers when to begin ordering returns via STARTS from the selecting submission processing centers. A Partnership Study is completed when analysts from National Office conduct a "closeout" in Ogden. IRM 1.13.3.2.4.2 contains more information about this.

1.13.3.2.4.1  (03-01-2008)
Special Photocopying Instructions

  1. Since Tax Year (TY) 2001 (i.e., SOI Year 2001), all partnership returns are filed at the Cincinnati, Ogden and Philadelphia submission processing centers. In Processing Years 2005 and prior, partnerships with a principal business or office in a foreign country or U.S. possession filed only at the Philadelphia center. Beginning in January 2006, and related to the scheduled consolidation of submission processing at campuses other than Philadelphia, the foreign entity partnership returns are filed at the Ogden center.

  2. When a unit sends either originals or photocopies to the edit unit, it needs to include any attachments that the partnership may have filed in addition to the forms or schedules mentioned above. In particular, if the Form 1065 has data reported for Rental Real Estate Income (Schedule K, Line 2), the unit ensures that the shipment contains associated "property attachments," including Forms 8825.

  3. When a control unit sends photocopies of returns and schedules, it updates STARTS. The edit unit relies on this information when it determines what documents to return to files. Once National Office gives notification to release returns, the edit unit destroys the photocopies.

1.13.3.2.4.2  (03-01-2008)
Special Editing Instructions

  1. Sometimes returns are selected a second time, though with the assignment of a different cycle, page, and line. The SOI edit unit processes these returns according to the instructions in the Statistical Editing of Partnerships IRM. These returns have certain identification data that the edit unit collects for statistical purposes. The SOI control units treat these duplicates as regular returns, but should note on the Selection Sheets and in STARTS that Martinsburg has selected a return for a second time.

  2. When the Ogden Submission Processing Center computer systems analyst loads an edit tape, he or she notifies the Cincinnati and Ogden edit unit managers of the new set of cycles of returns now available for editing. This insures that the manager only orders returns corresponding to the database records. The manager requests returns via STARTS. Exhibit 1.13.3-6 contains shipping addresses.

  3. The edit unit uses STARTS to release partnerships returns. Return release lists are produced from STARTS similar to what is done for 1040 and 1120 returns after editing and quality review have been completed. When returns appear on a return release list, the center does the following:

    If Then
    Photocopied return Hold in the SOI control unit in Files until notified by SOI Division to destroy
    Original return Ship back to the selecting submission processing center.

1.13.3.2.4.3  (03-01-2008)
Scanning Documents After Edit and Test Resolution

  1. Before editing, the centers scan partnership returns.

  2. Imaging creates an historical file for later study by both SOI National Office personnel and SOI customers. Each processing center is responsible for determining whether the SOI control unit, or edit unit, scans the selected returns. Only IRS personnel can scan returns.

  3. SCRIPS scans Schedules K-1, Partner's Share of Income, Credits, Deductions, etc. These images are merged with the SOI selected partnership images.

  4. Scanning procedures include:

    1. Viewing the return on the computer monitor while scanning the return to make sure that any pages requiring re-scanning (e.g., two pages on top of each other, or a slanted page) are completed at that time.

    2. Examining the entire scanned image of the return and all supporting schedules and attachments (except Schedules K-1) during the quality review phase to ensure all the images are readable, including the pages oriented in landscape mode.

    3. Reviewing STARTS reports that identify returns available for releasing.

    See the scanner's user guide for more detailed information about the scanning procedures.

  5. SOI will review the quality of each scanned image of a return. It will use e-mail to request re-scanning at the center if any unacceptable images are found during the review.

1.13.3.2.4.4  (03-01-2008)
Closeout Procedures

  1. Each study year there is a preliminary editing cutoff in mid-November. All returns selected through ECC-MTB selection Cycle 40 are edited in time to meet the preliminary data cutoff date. To ensure inclusion of all available returns selected through this cycle, the centers do the following:

    Function Action
    SOI edit units Using STARTS order all returns selected through the cutoff cycle in time to receive and edit them prior to the established cutoff date.
    SOI control units Provide all returns immediately that the SOI edit unit orders
    SOI edit units Complete editing of all available returns up to and including the cutoff cycle before editing returns from later cycles

  2. Close to the program completion deadline, National Office will notify the centers of any partnership documents that ECC-MTB did not sample, but that they should pull and process. In addition, the centers will continue looking for the remaining missing selected partnerships. Upon finding these documents, the control units will send them to the edit units.

  3. At the conclusion of the Partnership Study, the processing center destroys all photocopies of returns/attachments. National Office provides specific instructions for any special processing requirements for photocopies.

  4. The centers retain documents according to the Records Control Schedule IRM.

1.13.3.3  (03-01-2008)
Controlling Documents in the Individual Programs

  1. This section of the Internal Revenue Manual (IRM) describes the controlling and shipping of documents selected for the Statistics of Income (SOI) Individual Programs.

1.13.3.3.1  (03-01-2008)
Selected Documents

  1. Studies in this program include the annual Individual/Sole Proprietorship Study, quadrennial Individual Foreign Study and annual Sales of Capital Assets (SOCA) Study. Some documents that SOI edits in its individual income tax return samples are:

    • Forms 1040 and 1040A, U.S. Individual Income Tax Returns.

    • Forms 1040EZ, Income Tax Returns for Single and Joint Filers with No Dependents.

    • Schedule A, Itemized Deductions.

    • Schedule B, Interest and Dividend Income.

    • Schedule C, Profit or Loss From Business.

    • Schedule D, Capital Gains and Losses.

    • Form 1116, Foreign Tax Credit.

    • Form 2555, Foreign Earned Income.

    • Form 4562, Depreciation and Amortization.

1.13.3.3.2  (03-01-2008)
Individual Income Tax Program

  1. Sampling begins in Cycle 200804 for the Tax Year (TY) 2007 Individual/Sole Proprietorship Study. In addition, SOI collects special supplemental samples (identified as Cycle 200854) in March 2009. SOI edit units process all of the selected documents, beginning with the 200804 pull, between May 2008 and April 2009. Exhibit 1.13.3-10 contains information about the editor training and program deadlines.

  2. For TY 2007, the edit units at the Atlanta, Austin, Cincinnati and Kansas City Submission Processing Centers process the returns that SOI selected for the sample. The Atlanta, Austin, Cincinnati and Kansas City units will also edit many of these returns for the Sales of Capital Assets (SOCA) study between May 2008 and April 2009.

  3. When the edit units begin production, the editing system (called PRISM) selects for editing some Forms 1040EZ, 1040A and 1040, which the SOI control units normally do not pull. PRISM transmits this information to STARTS each cycle. The SOI control units generate Forms 1040EZ, 1040A and 1040 charge-outs from STARTS and pull the returns. Upon controlling these documents, the control unit updates STARTS. This action makes them available for ordering.

1.13.3.3.2.1  (03-01-2008)
Special Photocopying Instructions

  1. Control and edit units photocopy documents for several projects that are part of the major studies. Exhibit 1.13.3-6 provides the photocopying criteria and shipping addresses. Timely photocopying, shipping, and updating of STARTS, ensures the documents are available for either ordering or releasing.

1.13.3.3.2.2  (03-01-2008)
Special Closeout Procedures

  1. During 2008 and 2009, while the SOI control units and edit units at the submission processing centers are controlling and editing returns, the Cincinnati computer programmers are carrying out special closeout procedures for both the Tax Year (TY) 2006 and 2007 programs, respectively.

1.13.3.3.2.2.1  (03-01-2008)
Tax Year 2007

  1. Editing of returns for the TY 2007 Individual SOI program begins in May 2008. During 2008 and 2009 there are several program completion dates that the processing and non-processing centers have to meet. Exhibit 1.13.3-10 and Exhibit 1.13.3-11 describe the deadlines.

  2. The Cincinnati Submission Processing Center meets the TY 2007 Individual Advance Data closeout deadline by:

    1. Scheduling the PRISM Advance Data computer run (that SOI National Office will determine at a later date).

    2. Creating a file from the computer run, which contains all of the records on PRISM for cycles 200804 through 200838.

    3. Assigning, per National Office direction, the "actual processing status" code to the return status indicator (RSI) field for each record.

    4. Leaving the return status indicator (RSI) fields "null" for all of the records on the file that the processing centers did not completely process.

    5. Setting only the extraction cycle indicator field for complete records.

    6. Employing File Transfer Protocol (FTP) to send the file and a count of the file report to SOI National Office. After reviewing the file, SOI National Office will transmit a copy of the file to the Office of Tax Analysis (OTA) in Treasury and to other users.

  3. For the TY 2007 Complete Report closeout, the Cincinnati Submission Processing Center does the following:

    1. Schedules the PRISM Complete Report computer run (that SOI National Office will determine at a later date), which creates a file that contains all of the records on PRISM for cycles 200804 through 200853.

    2. Leaves the return status indicator (RSI) fields "null" for all of the records on the file that the edit units did not completely process.

    3. Sets the extraction cycle indicator field for each record to " 200853" .

    4. Employs File Transfer Protocol (FTP) to send the file and a count of the file report to SOI National Office. After reviewing the file, SOI National Office will transmit a copy of the file to the Office of Tax Analysis (OTA) in Treasury and to other users.

1.13.3.3.2.2.2  (03-01-2008)
Tax Year 2006

  1. Editing of returns for the TY 2006 Individual SOI program began in May 2007. During 2007 and 2008 there are several program completion dates that the processing and non-processing centers have to meet. Exhibit 1.13.3-10 and Exhibit 1.13.3-11 describe the deadlines.

  2. The Cincinnati Submission Processing Center meets the TY 2006 Individual Advance Data closeout deadline by:

    1. Scheduling the PRISM Advance Data computer run (that SOI National Office will determine at a later date).

    2. Creating a file from the computer run, which contains all of the records on PRISM for cycles 200704 through 200738.

    3. Assigning, per National Office direction, the "actual processing status" code to the return status indicator (RSI) field for each record.

    4. Leaving the return status indicator (RSI) fields "null" for all of the records on the file that the processing centers did not completely process.

    5. Setting only the extraction cycle indicator field for complete records.

    6. Employing File Transfer Protocol (FTP) to send the file and a count of the file report to SOI National Office. After reviewing the file, SOI National Office will transmit a copy of the file to the Office of Tax Analysis (OTA) in Treasury and to other users.

  3. For the TY 2006 Complete Report closeout, the Cincinnati Submission Processing Center does the following:

    1. Schedules the PRISM Complete Report computer run (that SOI National Office will determine at a later date), which creates a file that contains all of the records on PRISM for cycles 200704 through 200752.

    2. Leaves the return status indicator (RSI) fields "null" for all of the records on the file that the edit units did not completely process.

    3. Sets the extraction cycle indicator field for each record to " 200752" .

    4. Employs File Transfer Protocol (FTP) to send the file and a count of the file report to SOI National Office. After reviewing the file, SOI National Office will transmit a copy of the file to the Office of Tax Analysis (OTA) in Treasury and to other users.

1.13.3.3.2.3  (03-01-2008)
Controlling Files and Tapes at the Cincinnati Submission Processing Center and the Detroit Computing Center

  1. The Cincinnati Submission Processing Center controls all incoming files from the Enterprise Computing Center - Martinsburg (ECC-MTB), including those for the Project Individual SOI Modernization (PRISM) system and the Statistics of Income Automated Return Tracking System (STARTS), and transmits composite data files to National Office as directed.

  2. Cincinnati acknowledges receipt of all the files that the ECC-MTB sends or transmits. If the center cannot read, or correctly process, the files, it immediately contacts the Network Operations Command Center (NOCC) to request replacement tapes ((202) 283-6622).

  3. The Mass Media and Control Handbook IRM contains instructions for completing a Form 3220, Mass Storage Media, that the center sends along with the files, if it sent the files on magnetic tapes.

  4. Exhibit 1.13.3-6 lists the National Office addresses. Cincinnati should follow a procedure that ensures the most expeditious receipt of the data for processing in National Office. The preferred procedure is File Transfer Protocol (FTP).

  5. Exhibit 1.13.3-12 contains the Disposition Schedule, which insures that the centers maintain reports and tapes for a specific period to meet all program requirements before their disposition.

1.13.3.3.3  (03-01-2008)
Special Studies

  1. Some returns in the TY 2007 Individual/Sole Proprietorship Study are part of special studies. One is the Sales of Capital Assets (SOCA) study.

1.13.3.3.3.1  (03-01-2008)
Sales of Capital Assets (SOCA) Study

  1. The SOI sampling program at the Enterprise Computing Center - Martinsburg (ECC-MTB) identifies returns in the Sales of Capital Assets (SOCA) Panel Study and TY 2007 Cross-Section Study. Distinguishing these returns from others at this early stage enables SOI edit units in the Atlanta, Austin, Cincinnati and Kansas City Centers to plan more effectively the completion of this annual program. All these returns are edited first through the Project Individual SOI Modernization (PRISM) on-line editing system.

  2. PRISM also identifies returns for the SOCA study. On occasion, the ECC-MTB sampling program does not identify some panel returns because the information is incomplete, inaccurate or unexpected. The four SOI edit sites flag these returns during editing. See Exhibit 1.13.3-13.

  3. Editing of SOCA returns occurs on a first-in, first-out (FIFO) basis. Immediately following complete editing, the centers ship the original returns back to the selecting center through STARTS. They do not return photocopies, but instead destroy them after the program completion date.

1.13.3.4  (03-01-2008)
Controlling Documents in the Special Studies Programs

  1. This section of the Internal Revenue Manual (IRM) describes the controlling and shipping of documents selected for studies that the Special Studies Branch supervises for Statistics of Income (SOI).

1.13.3.4.1  (03-01-2008)
Selected Documents

  1. Documents that SOI samples for these studies include:

    • Forms 706, United States Estate Tax Returns

    • Forms 706-NA, United States Nonresident Alien Estate Tax Returns

    • Forms 709, United States Gift (and Generation-Skipping Transfer) Tax Returns

    • Forms 990, Returns of Organization Exempt from Income Tax

    • Forms 990-PF, Returns of Private Foundation

    • Forms 990-T, Exempt Organization Business Income Tax Returns

    • Forms 1118, Foreign Tax Credit-Corporations

    • Forms 5227, Split-Interest Trust Information Returns

    • Forms 5471, Information Returns of U.S. Persons With Respect To Certain Foreign Corporations

    • Forms 8038, Information Returns for Tax-Exempt Private Activity Bond Issues

    • Forms 8038-G, Information Returns for Tax-Exempt Governmental Obligations

    • Forms 8038-T, Arbitrage Rebates or Penalties

    • Forms 8832, Entity Classification Elections

    • Forms 8865, Returns of U.S. Persons With Respect To Certain Foreign Partnerships

  2. The Cincinnati and Ogden Submission Processing Centers are the processing sites for editing and error resolving the information in the documents selected for these studies. Exhibit 1.13.3-14 and Exhibit 1.13.3-15 list the studies and their processing schedules.

1.13.3.4.2  (03-01-2008)
Controlling Forms 706, 706-NA, and 709

  1. Forms 706, United States Estate Tax Returns

    1. Estate tax returns are processed at the Cincinnati Submission Processing Center in 2008 and 2009 on a first-in, first-out basis, and released back to the selecting center within six (6) weeks of receipt of the shipment in the edit unit. Priority is given to returns filed for victims of terrorist attacks, and to returns with gross estates of $5 million or more. Timely updating of STARTS is important because delays in the SOI processing adversely affect the acquisition of these documents by other IRS functions, such as SB/SE.

    2. On occasion, a return may not contain all of the schedules or related documents that require editing. The edit unit manager determines whether the unit enters the available information into the editing system, or holds the information until the missing schedules are found. In some cases, the manager may decide to contact the preparer of the return to obtain missing information.

    3. The center scans all estate tax returns, which SOI selected for processing, before editing. After scanning a group of returns, the edit unit verifies the batch by comparing the SSNs with those listed on the Form 706 Image List. It reviews each image for legibility and completeness before releasing the return to the edit unit. The unit re-scans returns if some images are illegible.

    4. Both the control units and edit units photocopy only on an exception basis. Situations arise when only a photocopy is available for SOI processing. For example, another function requests the original return, making it unavailable for shipment; or, the edit unit cannot process completely the document within six weeks. In those cases when a unit must photocopy, it needs to make clear and legible photocopies because it may have difficulty obtaining released, or re-filed, returns. Illegible photocopies hinder the unit’s editing task, including meeting its program deadline.

    5. The units can use the checklist below when scanning or photocopying Forms 706 and attachments:

      Information Items "Scanned
      (Photocopied)? "
      Yes/No
      All pages, front and back of Forms 706  
      All attachments and continuation sheets for Schedules A to S  
      Forms 712  
      Death Certificate  
      Will  
      Trust Instruments  
      All gift tax returns (Forms 709) and attachments  
      Any additional information provided by the filer detailing the assets of the estate (real estate appraisals are not necessary)  

  2. Forms 706-NA, Nonresident Alien Estate Tax Returns

    1. The SOI control unit at the Cincinnati Submission Processing Center pulls every Form 706-NA that individuals file at the center. Because the Enterprise Computing Center - Martinsburg (ECC-MTB) does not create charge-outs for these documents, the control unit must enter into STARTS a brief description of each controlled document (e.g., EIN, DLN, etc.).

    2. The other submission processing centers send any Forms 706-NA, filed at their centers, to Cincinnati, the designated document control site. Once the center receives the documents, Files then routes them to the Cincinnati SOI Control Unit.

    3. Once received, the center scans the returns. After scanning, the edit unit reviews each image for legibility and completeness. The unit re-scans returns, if some images are illegible.

    4. In PY 2007, National Office SOI is the edit site for perfecting these forms and data entry.

  3. Forms 709, United States Gift (and Generation-Skipping Transfer) Tax Returns

    1. The SOI Control unit at the Cincinnati Submission Processing Center uses STARTS to obtain information about the pulling of taxpayer folders that contain Forms 709.

    2. The SOI edit unit at the center uses STARTS to order the selected documents that it will edit.

    3. Either the edit unit or control unit at the center scans all of the returns in the study. After scanning a group of returns, it compares the SSNs with those listed on the Form 709 Image List to verify completion of scanning of the returns in a STARTS release workgroup. It also reviews each image for legibility and completeness before releasing each return in the workgroup. The unit re-scans returns if some images are illegible.

    4. Both the control unit and edit unit photocopy only on an exception basis. Situations may arise when only a photocopy is available for SOI processing. In those cases where a unit must photocopy, the unit needs to make clear and legible photocopies, because it may have difficulty obtaining the released or re-filed original. Illegible photocopies hinder the editing task. In cases where photocopying of returns is necessary, all gift tax returns present in a taxpayer folder, as well as all attachments, are copied.

    5. Upon completion of the editing task, STARTS releases the returns back to the originating center.

1.13.3.4.3  (03-01-2008)
Controlling the Forms 990 Series and Forms 4720 and 5227

  1. This section describes the controlling and shipping of Forms 990, 990-PF, 990-T, 4720, and 5227. Exhibit 1.13.3-14 and Exhibit 1.13.3-15 specify project start-up dates and cutoff dates by cycle for these documents. Each return sampling cycle, the SEIN database is searched for images of selected returns. A code is inserted into STARTS indicating the presence or absence of an image. The SOI control clerk at the Ogden Submission Processing Center (OSPC) will receive return charge-outs for any returns not having a SEIN image and will search for paper copies stored on holding shelves prior to sending returns back to the Files function. Retrieved paper returns are forwarded to the SEIN unit, scanned, and then returned to the SOI control clerk. The control clerk will hold paper copies until fact-of-editing from a SEIN image is verified.

  2. For each of the Forms 990-series, 4720, and 5227 studies, the SOI control clerk periodically reviews reports from STARTS that list all selected returns having no image available. If the paper return was not retrieved from the holding shelves and sent to SEIN for scanning, the SOI control clerk requests the paper return from Files. OSPC must place special emphasis on accounting for all selected returns, especially those critical cases with sample code classifications of 37 and 46 (Form 990); 79 (Form 990-T); 16, 17, and 23 (Form 990-PF); and, 43, 53, 63, and 73 (Form 5227).

1.13.3.4.4  (03-01-2008)
Controlling Documents for International Special Studies

  1. Forms 1042-S, Foreign Person's U.S. Source Income Subject to Withholding

    1. The Ogden Submission Processing Center sends documents showing tax remitted from foreign governments under treaty agreements to SOI National Office. Information about the tax remitted, the date of payment and the name of the country are part of the shipment.

    2. See Exhibit 1.13.3-6 in this document and IRM 3.30.123, Work Planning and Control – Processing Timeliness: Cycles, Criteria, and Critical Dates, for shipping details.

    3. If Ogden processes all paper Forms 1042-S and the data from the paper forms is available on the CTW 2504 database at ECC-MEM, do not ship the paper Forms 1042-S to the SOI edit unit in Ogden.

    4. If Ogden is unable to process paper Forms 1042-S, ship the paper Forms 1042-S to the SOI edit unit in Ogden by September 30, 2008.

    5. If Ogden is able to process some, but not all of the paper Forms 1042-S, ship the paper Forms 1042-S, which are not processed, to the SOI edit unit in Ogden by November 15, 2008.

  2. Form 1118, Foreign Tax Credit-Corporations

    1. See IRM 1.13.3.2.3.2 for an explanation of this project.

  3. Forms 1120-IC-DISC, Interest-Charge Domestic International Sales Corporation Returns

    1. Forms 1120-IC-DISC are filed at the Cincinnati submission processing center. Cincinnati must control and scan all Forms 1120-IC-DISC filed for Tax Years 2004, 2005 and 2006. The range of ending accounting periods for these documents for Tax Year 2004 is 200407 through 200506, for Tax Year 2005, 200507 through 200606, and for Tax Year 2006, 200607 through 200706.

  4. Forms 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, and Forms 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner (now a quadrennial study)

    1. The SOI control unit at the Ogden Submission Processing Center controls all the pages and attachments of every Form 3520 and/or Form 3520-A for Tax Year 2006.

      Note:

      Tax Year 2006 Forms 3520 and 3520-A include all forms that show ending accounting periods from January 1, 2006 (01/01/2006) through December 31, 2006 (12/31/2006). It is likely most of the filings of these forms will occur in 2007.

    2. Any Forms 3520 and 3520-A filed at the other centers by mistake are forwarded to the Ogden Submission Processing Centers.

    3. The SOI support unit in Ogden sends workgroups of documents to the SOI edit unit. The edit unit orders workgroups in STARTS.

  5. Forms 4563, Exclusion of Income for Bona Fide Residents of American Samoa

    1. This study commences when the U.S. Government completes the negotiations of agreements with the appropriate U.S. possessions. Therefore, the instructions are effective only upon notification from SOI.

    2. The SOI control unit at the Philadelphia Submission Processing Center sends the documents on the last working day of each month to National Office. Any Forms 1040, with attached Forms 4563, filed at one of the other centers are forwarded to Philadelphia.

    3. The control unit photocopies the following items for each Form 1040 with an attached Form 4563, or a schedule instead of this form that supports an exclusion of income from sources in U.S. possessions: Forms 1040, U.S. Individual Income Tax Return; Schedule A, Forms 1040, Itemized Deductions; Forms 4563 (or an attached schedule instead of this form); and Form(s) W-2, Wage and Tax Statement.

  6. Form 5471, Information Returns of U.S. Persons With Respect To Certain Foreign Corporations

    1. See IRM 1.13.3.2.3.2 for an explanation of this project.

  7. Forms 5713, International Boycott Reports

    1. The SOI Study year is January through December. It includes all Forms 5713 filed at the Philadelphia Submission Processing Center with accounting periods ending in the calendar year of the study. For example, forms with accounting periods ending in 2003 are part of the SOI Year 2003 Study. This contrasts with most studies which run on a true fiscal year (i.e., a study year encompasses more than one calendar year).

    2. Philadelphia Submission Processing Center ships the entire volume of returns in one shipment as directed by National Headquarters.

    3. Ogden Submission Processing Center edits the original form. It returns the originals upon completion of data entry in the sequence they were received to the Philadelphia Submission Processing Center.

  8. Forms 8288, U.S. Withholding Tax Returns for Dispositions by Foreign Persons of U.S. Property Interests, and 8288-A, Seller-Foreign Person of U.S. Real Property Interest

    1. The Philadelphia Submission Processing Center sends every Form 8288 and 8288-A table and listing to SOI National Office.

  9. Forms 8804, Annual Return for Partnership Withholding Tax (Section 1446), and Forms 8805, Foreign Partners Information Statement of Section 1446 Withholding Tax

    1. The Philadelphia Submission Processing Center sends every Form 8804 and 8805 table and listing to SOI National Office.

  10. Forms 8832, Entity Classification Election

    1. This SOI study is continuous; it involves examining every filed Form 8832.

    2. After the Cincinnati Submission Processing Center assigns taxpayer identification numbers (TIN), the Cincinnati SOI control unit photocopies every Form 8832, and all its attachments.

    3. Cincinnati sends batches of photocopied documents to the International Edit Unit in Ogden on the last working day of each month.

    4. The SOI International Edit Unit in Ogden pulls the original Form 8832 documents for SOI editing from the Ogden Files area after validation of the Forms 8832 on the Business Master File (BMF).

    5. If the other centers receive any Forms 8832, they forward them to Ogden for processing.

    6. Forms 8832 are controlled in the Ogden International Edit Unit.

    7. Ogden personnel directly key the "edit ready" information from the Forms 8832, as well as, test it on-line.

      Note:

      See IRM 3.13.2.29 for instructions on processing Forms 8832.

  11. Forms 8865, Returns of U.S. Persons With Respect To Certain Foreign Partnerships

    1. See IRM 1.13.3.2.3.4 for an explanation of this project.

1.13.3.4.5  (03-01-2008)
Controlling Documents for Domestic Special Studies

  1. Forms 8038, 8038-G, and 8038-T

    1. Taxpayers file these forms at the Ogden Submission Processing Center (OSPC). If the other centers receive these forms, they mail them to Ogden.

    2. Both control units and edit units use STARTS to control these forms.

    3. The edit unit at the Ogden Submission Processing Center processes Forms 8038 and 8038-G each year, as well as Forms 8038-T the center receives during odd calendar years (e.g., 2007, 2009, etc.).

Exhibit 1.13.3-1  (03-01-2008)
Enterprise Computing Center - Martinsburg (ECC-MTB) Files