text:
- 18.104.22.168 Specific Claims and Other Issues Overview
- 220.127.116.11 What Are Specific Claims?
- 18.104.22.168 Specific Claims Procedures
Manual Transmittal
September 13, 2013
(1) This transmits revised IRM 21.6.6, Individual Tax Returns, Specific Claims and Other Issues.
Material Changes
(1) Editorial changes were made throughout IRM 21.6.6. The web addresses, IRM and legal resources were checked and corrected, where necessary.
(2) IPU 12U1976 issued 12-21-2012 IRM 22.214.171.124.4 added IRM reference for Form 3115 timely filed.
(3) IPU 13U0105 issued 01-10-2013 IRM 184.108.40.206.11 added The American Taxpayer Relief Act of 2012 extension.
(4) IPU 12U1653 issued 10-02-2012 IRM 22.214.171.124.11.1 added procedures for the Home Affordable Modification Program (HAMP) and Principal Reduction Alternative (PRA).
(5) IPU 13U0751 issued 04-17-2013 IRM 220.127.116.11.20(9) added procedures for Disabled Vietnam Veterans and Agent Orange.
(6) IPU 12U1739 issued 10-17-2012 IRM 126.96.36.199.22.1 reminder added for required documentation taxpayer must provide from Social Security Administration to substantiate an incorrect date of death.
(7) IPU 13U0398 issued 02-22-2013 IRM 188.8.131.52.22.1 and IRM 188.8.131.52.22.2 procedures updated for decedent accounts with Transaction Code (TC) 971 and Action Code (AC) 524.
(8) IPU 13U0412 issued 02-25-2013 IRM 220.127.116.11.22.1 and IRM 18.104.22.168.22.2 editorial change converted procedures for decedent accounts with Transaction Code (TC) 971 and Action Code (AC) 524 to a Table format.
(9) IPU 13U0604 issued 03-25-2013 IRM 22.214.171.124.22.1, IRM 220.127.116.11.22.2 and IRM 126.96.36.199.22.3 procedures clarified for decedent accounts with Transaction Code (TC) 971 and Action Code (AC) 524.
(10) IPU 13U0941 issued 05-17-2013 IRM 126.96.36.199.23.2.1 updated to include the IDRS number to reassign Killed in Terrorist Act (KITA) Claims that are erroneously scanned into CIS.
Effect on Other DocumentsIRM 21.6.6, Specific Claims and Other Issues, dated August 28, 2012 (effective date 10-01-2012) is superseded. The following IRM Procedural Updates (IPUs) issued from October 02, 2012 through May 17, 2013, have been incorporated into this IRM: "12U1653, 12U1739, 12U1976, 13U0105, 13U0398, 13U0412, 13U0604, 13U0751, and 13U0941."
AudienceAll employees performing account work.
Effective Date(10-01-2013)
Ivy S. McChesney
Director, Accounts Management
Wage and Investment Division
This section includes information on certain specific claims associated with individual tax returns. Some are valid claims and others are not allowable.
The claims may include any unusual or nonstandard deductions. Claims are often filed based on tax law changes or issues where no precedents have been established.
This section contains procedures for specific claims.
Refer taxpayers to the Taxpayer Advocate Service (TAS) when the contact meets TAS criteria and you can't resolve the taxpayer's issue the same day, refer to IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 184.108.40.206, Same-Day Resolution by Operations. When you refer cases to TAS, prepare Form e-911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), via AMS or Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), if AMS is not available.
Refer to IRM 126.96.36.199.3, CI Scheme Development Center and Integrity and Verification Operation (IVO) (formerly AMTAP) Guidance for established procedures for referrals.
Refer to IRM 21.5.3-7, Fraud Referral Claims for processing IMF fraudulent claims that do not have an existing treatment stream.
As described in Rev. Rul. 2004-33 and Rev. Rul. 2006-20, taxpayers may make frivolous arguments, seeking reparation tax credits against the U.S. government for past injustices resulting from slavery and economic oppression, or from other historical mistreatment. They usually indicate "Black Investment Taxes" , "Reparation for African Americans" , "Reparations for Native Americans" , or a similar statement. The amount claimed per person, is often, but not always, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
Taxpayers claim entitlement to a tax credit because of these hardships and try to claim the credit:
On an amended return
By the filing of a "bogus" Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains
On an original return, usually in the payment area
DO NOT ALLOW the claim. Refer to IRM 184.108.40.206.16.7, Identifying Frivolous Returns/Correspondence and Responding to Frivolous Arguments. If the taxpayer erroneously received a refund based on this credit, they should file an amended return to correct their account. Refer to IRM 21.4.5, Erroneous Refunds, for additional instructions.
If the taxpayer has questions regarding the legitimacy of the claim advise as follows:
These claims will be denied.
Taxpayer must have withdrawn their claim within 30 days or a penalty will be assessed.
The Service may impose the Section 6702 penalty even if only one submission making frivolous arguments is made.
The IRS is aware that periodically fraudulent seminars are held providing misleading information to taxpayers.
Generally, for damages to be excluded from gross income under IRC Section 104(a)(2) the damages must be received on account of personal physical injuries or physical sickness. DisallowForm 1040X, Amended U.S. Individual Income Tax Return, claiming income payments as excludable under IRC Section 104(a)(2) based on age discrimination. Include in the Letter 105C the following disallowance language: "Only amounts received on account of personal physical injuries or physical sickness may be excluded from gross income under IRC Section 104(a)(2)."
Taxpayers who claim a deduction for alimony paid but do not provide the Taxpayer Identification Number (TIN) of the recipient, are contacted during pipeline process for this information. Refer to IRM 126.96.36.199.4, Math Error Substantiated Protest Processing. Correspondence, including late replies, may be received requesting:
An adjustment of tax for an alimony deduction
Penalty abatement for failure to timely provide the TIN of the alimony recipient
The following table will help you decide if the IRC 6723 penalty for Failure to Comply with Information Reporting Requirements may be abated.
If taxpayer And Then Provides the missing information It is before the Return Due Date (RDD)
Adjust the tax for the alimony deduction.
Abate the penalty.
Correct the Adjusted Gross Income (AGI) and Taxable Income (TXI).
Use Blocking Series 05.
Provides the TIN after the RDD Reasonable Cause is established refer to IRM 20.1, Penalty Handbook.
Adjust the tax and abate the penalty. (Follow the steps in 1 through 4 above).
Update the Return Processable Date (RPD). Refer to IRM 184.108.40.206.1, Updating the RPD on Unprocessible Returns and IRM 2.4, IDRS Terminal Input.
If applicable, include the appropriate Reason Code (RC), refer to IRM 188.8.131.52.2, Reasonable Cause.
IRC Section 446(e) requires a taxpayer to receive the consent of the Commissioner before changing a method of accounting. Unless specifically authorized by the Commissioner, a taxpayer may not request, or otherwise make, a retroactive change in method of accounting, regardless of whether the change is from a permissible or an impermissible method. See generally Rev. Rul. 90-38. Taxpayers might file amended returns, based on the "Albertson's, Inc." court case, to claim:
Nonqualifying deferred compensation as an interest deduction
A change in accounting method
Disallow the following:
Claims, amended returns, or Form 3115, Application for Change in Accounting Method, received indicating or requesting a retroactive change in accounting method (except for Form 3115 filed under provisions that specifically permit a retroactive change in accounting method such as Section 6.17 of the Appendix of Rev. Proc. 2011-14. Follow procedures in IRM 18.104.22.168.15.1.1, Forms 3115 Filed Under Automatic Change Procedures).
Claims or amended returns referencing "Albertson's, Inc." or requesting a change to the "Albertson's, Inc. accounting method" .
If Then This is the only issue
Input transaction code (TC) 290 with blocking series 98 or 99.
Use blocking series 99 with the TRPRT or IMFOLR/BMFOLR print attached if the original return was filed electronically.
Send the appropriate Letter 105C or Letter 106C using the disallowance language in (3) below.
Other issues are involved Follow normal adjustment procedures.
The disallowance language is as follows: "In order to change your accounting method, you must submit Form 3115, Application for Change in Accounting Method and receive consent from the Commissioner (Internal Revenue Code Section 446(e)."
IRC Section 127 allows employers to exclude educational expenses from the employee's taxable income. The maximum annual exclusion is $5,250.
The Economic Growth and Tax Reconciliation Act of 2001, permanently extended IRC Section 127. It also reinstated its applicability to graduate courses beginning after December 31, 2001.
For complete information concerning Form 8857, Request for Innocent Spouse Relief, refer to IRM 25.15, Relief from Joint and Several Liability.
Refer to IRM 21.4.6, Refund Offset, and IRM 22.214.171.124.5, Injured Spouse Claims, for complete information concerning injured spouse claim procedures.
State trooper expenses for meals eaten while on duty are inherently nondeductible, except for the following narrow exceptions:
Taxpayer lives in a state within the U.S. Court of Appeals for the Eighth Circuit (Arkansas, Iowa, Minnesota, Missouri, Nebraska, North Dakota or South Dakota), and
Taxpayer provides proof of duty-related meal restriction requirements from his employer and
Taxpayer deducts no more than 50 percent of the meal expenses
You may receive claims from taxpayers outside the U.S. Court of Appeals for the Eighth Circuit citing a Georgia State patrolman's article asserting that the Service had changed its position in 1993 to allow such deductions. This is not correct, disallow such claims using the language in paragraph (1) above.
If Then Claim does not provide evidence of the exception (as stated in (1) above).
Disallow the claim.
Send the Letter 105C, Claim Disallowed or Letter 106C, Claim Partially Disallowed, include (1) above as the disallowance language.
Taxpayer resides in the states listed above but does not provide the proof required.
Follow "No Consideration Procedures" , Refer to IRM 184.108.40.206.6, No Consideration and Disallowance of Claims and Amended Returns, for additional information.
IRC Section 119 (b)(4) (RRA 98 Act IRC Section 5002), states that all employee meals provided on an employers business premises are excludable if more than half of the employees who receive the meals on the premises receive them for the "convenience of the employer" .
Because of the long shifts and the requirement that firefighters remain in the station unless called away on official business, generally participate in a "common meal fund" . A "common meal fund" is an arrangement within the fire station for the firefighters to contribute to the fund for the purchase of food for their meals.
Where a fire department requires its firefighter employees to make payments into a common meal fund as a condition of employment, such expenses are ordinary and necessary within the meaning of Section 162(a). However, if a firefighter's payments into a "common meal fund" are not a condition of employment, then such expenses constitute personal expenses and are not deductible pursuant to Section 262.
The key point is the "common meal fund" contribution/payments must be required as a condition of employment. Firefighter's contribution into a "common meal fund" that are voluntary (not a condition of employment), the expenses constitute personal expenses and are not deductible.
If the contribution to the fund is required and is a condition of employment then it is deductible as an "employee business expense" . Report on Form 2106, Employee Business Expenses, and carried over to Schedule A, Itemized Deductions, as a "miscellaneous" deduction subject to the 2 percent of the Adjusted Gross Income (AGI) exclusion. If the contributions are voluntary they are not deductible.
The Expanded Tax Benefit for Health Professionals Working in Underserved Areas was created by the Affordable Care Act of 2010. Health care professionals whose student loans were forgiven under various state programs that reward those who work in underserved communities may qualify for an exclusion from gross income.
Prior to this act, only student loans repaid or forgiven under the National Health Service Corps Loan Repayment Program or certain state loan repayment programs eligible for forgiveness under the Public Health Service Act qualified for an exclusion.
Under the new law, amounts received under other state loan repayment or forgiveness programs intended to increase the availability of health care services in underserved or health professional shortage areas are also excludible from gross income beginning in 2009.
Health care professionals participating in the above programs who already reported repaid or forgiven loan amounts as income on their 2009 or later returns may be due refunds:
The reported repaid or forgiven loan amounts may have been reported because individuals received a Form W-2, Wage and Tax Statement, or Form 1099, Information Return.
Health care professionals who believe they qualify for this relief may want to consult with their state loan program offices to determine whether the program is covered by the new law.
Health care professionals who meet the requirements and have not yet filed their tax returns do not need to report eligible loan repayment or forgiveness amounts when they file.
Those who meet the requirements and have already filed a tax return should file 1040X, Amended U.S. Individual Income Tax Return:
They should exclude the repaid or forgiven loan amount previously reported as income and write "Excluded student loan amount under 2010 Health Care Act" in the Explanation of Changes box.
The Form 1040X, Amended U.S. Individual Income Tax Return may be downloaded from the IRS website http://www.irs.gov/ or obtained by calling IRS toll-free at 1-800-TAX-FORM (829-3676).
The eligible taxpayer may also request an employer or other issuer to provide a Form W-2 C, Corrected Wage and Tax Statement, or Form 1099, Information Return and attach the corrected form to the Form 1040X.
Form 1040X may be filed without attaching a corrected W-2 C or Form 1099.
These returns will be centralized in Accounts Management (AM) in the Fresno campus. If you receive one of these cases and are not part of the Fresno centralized team(s), follow procedures below to route all related cases to Fresno:
If you receive a paper case, route to:
Internal Revenue
Attn: Stop AY001
Fresno, CA, 93888
If you receive a case that has already been scanned into CIS, reassign to the Fresno Campus IDRS number 1030302151.
The procedures below are for the Fresno AM centralized team(s) only:
Input TC 291 for the amended return tax decrease.
Use Reason Code 130 -"Income Exclusion for Loan Forgiveness for Health Professionals" .
Organization Function Program (OFP) - 84381 must be used to report time working on "Affordable Health Care Act 2010 - Income Exclusion for Loan Forgiveness for Health Professionals" returns.
The Mortgage Forgiveness Debt Relief Act of 2007, generally allows a taxpayer to exclude income from the discharge of debt on the taxpayer's principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.
This provision applies to debts forgiven in calendar years 2007 through 2013, as extended by The American Taxpayer Relief Act of 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home's value or the taxpayer's financial condition.
Normally, debt that is forgiven or cancelled by a lender must be reported and included as income and is taxable, but the Mortgage Forgiveness Debt Relief Act allows taxpayers to exclude certain cancelled debt on their principal residence from their income. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.
This provision applies only to forgiven or cancelled debt used to buy, build or substantially improve the taxpayer's principal residence, or to refinance debt incurred for those purposes. In addition, the debt must be secured by the home. This is known as qualified principal residence indebtedness.
Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the tax-relief provision. If proceeds of refinanced debt are used for other purposes for example, to pay off credit card debt, the discharge of the refinanced debt does not qualify for the exclusion.
The amount of debt forgiven must be reported on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), which must be attached to the tax return. Taxpayer's are instructed to mark the appropriate box under line 1 on Form 982 to indicate the type of discharge of indebtedness and enter the amount of the discharged debt excluded from gross income on line 2. Any remaining cancelled debt must be included as "Other Income" on Line 21 of the tax return. Process the claim following normal adjustment procedures. If Form 982 is filed separately or loose, refer to IRM 220.127.116.11.4, Processing of Loose Forms or Schedules. If Form 1040X is filed claiming forgiven or cancelled debt and the Form 982 is not attached, research CC TRDBV, if there is no indication the Form 982 was received, refer to IRM 126.96.36.199.2, Tax Decrease or Credit Increase Processing.
Lenders are required to send Form 1099-C, Cancellation of Debt, when they cancel any debt of $600 or more. The amount cancelled will be in box 2 of the form. When the taxpayer receives a copy of the Form 1099-C, the "Instructions for Debtor" accompanying the form instruct the taxpayer to notify the lender immediately if the amount in box 2 is incorrect.
The following are some references on this topic which may be of assistance:
IR-2008-17, Mortgage Workouts, Now Tax-Free for Many Homeowners; Claim Relief on Newly-Revised IRS Form
Form 982 and Instructions, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment).
Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (for Individuals)
The Home Affordable Modification Program (HAMP) and Principal Reduction Alternative (PRA), are programs to help financially struggling homeowners avoid foreclosure by modifying loans to a level that is affordable for borrowers now and sustainable over the long term. Under HAMP, a borrower may be eligible for principal reduction of the outstanding balance of a qualifying mortgage pursuant to the program's Principal Reduction Alternative (PRA). Borrowers must contact their mortgage loan servicer to determine their eligibility. In an effort to enable more struggling homeowners to take advantage of the Making Home Affordable Program, the application deadline has been extended to December 31, 2013.
If a HAMP mortgage loan modification includes a PRA, the government makes additional incentive payments over three years to the investor. (These additional incentives are called "PRA investor incentive payments." ) The amount of the PRA investor incentive payments depends not only on the amount of principal reduced but also on the loan-to-value ratio and the loan's payment history before the HAMP modification. The PRA investor incentive payments range from 18% to 63% of the principal amount reduced. This payment by the government on behalf of the homeowner is excludible from the homeowner's income under the general welfare exclusion. Excluding this amount from the homeowner's gross income is consistent with the treatment of Pay-for-Performance Success Payments, which are addressed in Rev. Rul. 2009-19.
The loan servicer is required to report the full amount of the discharge of debt on the Form 1099-C, Cancellation of Debt, regardless of whether some or all of the amount is excludible from income under the qualified principal residence indebtedness exclusion, the insolvency exclusion, or any other exclusion that may apply. The loan servicer must provide the Form 1099-C to the borrower.
Prior to adjusting the account refer to Exhibit 21.5.3-2, Examination Criteria (CAT-A) – General.
The following are some references which may be of assistance:
Home Affordable Modification Program (HAMP)
Making Home Affordable.gov website
Generally, if a debt is canceled or forgiven, other than as a gift or bequest, the canceled amount must be included in income. Refer to Publication 17, Your Federal Income Tax, Chapter 12, and Publication 525, Taxable and Nontaxable Income. "Repayments" for details and exceptions. One exception, not outlined in Publication 17, involves the issuance of Form 1099-C, Cancellation of Debt, and a subsequent repayment of the debt by the taxpayer.
The regulations under IRC Section 6050P generally, require that Form 1099-C be issued to a debtor if one of eight events occurs. One of those events is: if for at least a 36 month period, no payments are made toward the debt, then the creditor must issue a Form 1099-C, solely for reporting requirements, whether or not an actual discharge of indebtedness has occurred.
In some cases, the taxpayer includes the amount reported on the Form 1099-C as income on their income tax return, not understanding the fact that the creditor may still pursue collection activity.
If the creditor resumes collection activity, e.g., garnishment of the taxpayer's earnings, and the debt is paid, the taxpayer may be entitled to file an amended return to exclude the income for the year it was reported. If an amended return is filed, the amount of debt discharge income should be treated as a reduction to the income reported for the year for which the Form 1099-C is received and not as a Claim of Right adjustment for the year when the debt is repaid.
If, as of the time of the repayment, the year for which the cancellation of debt income is reported is closed for assessment, taxpayers may claim deductions if otherwise allowable for the tax years. A taxpayer using the cash accounting method may claim a deduction for the repayment only for the tax year in which it was made.
If Then Cash accounting method is used A taxpayer may claim a deduction only for the tax year in which the repayment was made. Any other accounting method is used The repayment may be deducted only for the tax year in which it is a proper deduction, under the particular accounting method employed.
Example : Taxpayer using the accrual method takes the deduction in the tax year in which the repayment obligation accrues.
If taxpayer repays money that was included in gross income in a previous tax year because at the time it appeared that the taxpayer had an unrestricted right to the income (Claim of Right, IRC Section 1341), and the repayment is deductible (for example as a business expense or a IRC Section 165 loss), then the taxpayer may (1) deduct all or part of the amount for the year in which it is repaid or (2) take a refundable credit against tax for that year. If the repayment is not deductible, then IRC Section 1341 is not available. The manner in which the deduction is taken depends upon the:
Type of income included in the previous year
Amount of repayment
Accounting method
If the amount repaid was $3,000 or less, Claim of Right under IRC Section 1341 does not apply. Thus, the amount repaid is deducted in the year of repayment. The repayment is deducted, in general, on the same form or schedule on which it was previously included. If it had been included as self-employment income on Schedule C, it is deducted on Schedule C. If it had been included as capital gain on Schedule D, it is deducted on Schedule D. If it was reported as wages, taxable unemployment compensation, or other nonbusiness ordinary income, it is deducted on Schedule A, Itemized Deductions.
If the amount repaid was more than $3,000, it is either deducted (Method 1) or used to figure a credit (Method 2), whichever method results in less tax.
Method 1 - Figure the tax with a deduction for the amount repaid.
Method 2 - Follow these steps:
Figure the tax without deducting the amount repaid.
Refigure the tax for the earlier year of inclusion without including the amount repaid.
Subtract the refigured tax under step (2) from the actual tax for the earlier year. The difference is the credit.
Subtract the credit under step (3) from the tax under step (1).
If the tax under Method 1 is less, the repayment is deducted, in general, on the same form or schedule on which it was previously included. Refer to IRM 188.8.131.52.12.2, Claim of Right- IRC Section 1341, Repayment of $3,000 or Less. If taken as an itemized deduction, use line 28 of Schedule A, Itemized Deductions.
If the tax under Method 2 is less, the credit figured under that method should be entered on Form 1040, U.S. Individual Income Tax Return, line 71 with the annotation "IRC Section 1341" in the column to the right of line 71.
IRC Section 1341, does not apply to deductions from bad debts, deductions from sales to customers (e.g., returns and allowances), or deductions for legal and other expenses of contesting the repayment.
Input Transaction Code (TC) 291 blocking series 05 for the lesser of the "Claim of Right" adjustment or Total Tax liability. Input credit reference number 766 to refund the remaining overpayment if the "Claim of Right" adjustment exceeds the total tax liability. Refer to IRM 18.104.22.168, General Claims Procedures.
The Department of Army or taxpayer may submit DA Form 5174-R, Refund for Prior Year Salary Overpayment. No adjustment activity is necessary.
Associate the form with the return for the year of overpayment.
If Then No TC 150 is posted Use a Push Code for association by Files. The Push Code is returned due to no fact of filing
Research for posting under another TIN.
Associate with the TC 150.
No record of another Taxpayer Identification Number (TIN)
Return the DA Form 5174-R, to the taxpayer.
Advise taxpayer to retain it with the tax records since IRS has no record of a return.
All claims for refund of prior year income taxes paid on periodic partial distributions from employee savings, retirement, and investment plan distributions are worked using normal adjustment procedures.
Taxpayer must show the aggregate amount contributed and withdrawn before the claim can be worked. Do not send to Examination as Category A.
Taxpayers may claim seller paid points when purchasing a principal residence. The deduction is claimed on Schedule A, Itemized Deductions. Appraisal, inspection, title, and attorney fees are NOT deductible. Property taxes paid are not deductible as points even if designated as points. Reject the claim if proof of the claim is not provided. Taxpayer must submit:
Form HUD-1, Settlement Statement or other settlement statement
Form HUD-1, must explicitly mention "Loan Origination Fees" , "Loan Discount" , "Points" , or "Discount Points" . Refer to Rev. Proc. 94-27, Section 3.
Refer to IRM 21.5.3, General Claims Procedures.
Whenever Integrated Data Retrieval System (IDRS) Command Code (CC) LETER is input on a joint account, the system determines if the spouse is the same for the current year.
If Then The spouse has changed, or the taxpayer is now filing single, unmarried head of household, or married filing separate. The system searches for a current address of the spouse listed on the joint account.
Research the spouse's address, using CC SPARQ, refer to IRM 2.3, IDRS Terminal Responses, when the response to CC LETER states "Latest Spouse address questionable" , or a system other than Integrated Data Retrieval System (IDRS) is used to generate a letter on a joint account. If the spouse requests information on more than one year, research each year to ensure the spouse is the same. Issues not involving the same spouse must be addressed in a separate letter to the taxpayer. Inform the taxpayer why they are receiving two letters. The taxpayer requesting the information may be listed as the spouse on a joint return.
In some instances, it is not necessary nor is it appropriate to send a spousal letter. Use the override key or suppress the spousal letter by not entering the Master File Transaction (MFT) or year when:
Replying to the taxpayer's request for a copy of the tax return, or copies of Form W-2, Wage and Tax Statement.
A reply to the taxpayer does not show the tax liability, refund, or balance due on a joint account.
You must enter the taxpayer's full name and address if the MFT and Year are not entered.
Taxpayers may file amended returns to claim a deduction for daily transportation expenses between a taxpayer's residence and a temporary work location.
If And Then Basis of the claim is the Walker 101 T C 537 (1993) and/or Burleson T.C. Memo 1993-625 Tax Court decision It is the only issue
Disallow the claim.
Send the Letter 105C or Letter 106C with a complete explanation of why the claim was disallowed, including appeal rights.
Basis of the claim is the Walker and/or Burleson Tax Court decision Other issues are involved Follow normal adjustment procedures. If correspondence is issued, include appeal rights. Claim cites Rev. Rul. 90-23, Rev. Rul. 94-47, and/or Rev. Rul. 99-7 Taxpayer did not mention Walker and/or Burleson Follow procedures in IRM 21.5.3, General Claims Procedures.
In Rev. Rul. 57-383, the Service considered the Federal Income Tax treatment of certain unemployment benefits received by union members while separated from their jobs.
Rev. Rul. 57-383 provides that:
The amounts paid by members into the fund are not deductible.
The amounts received as benefits under the plan are includible in the recipients gross income to the extent those benefits exceed the recipients payments made into the fund.
The unemployment benefits received may be offset by the amount of payments into the fund. The benefits received in excess of the payments are includible in the taxpayer's income.
Taxpayers must submit a Selective Strike Assessment Schedule showing the annual wages earned and payments made into the plan according to their records, based on a yearly percentage. Unions do not maintain records of members' individual contributions. A dollar figure representing the entire year's payment made to the Fund is not sufficient, correspond if the schedule is not provided.
YEAR ANNUAL WEIGHTED BASE AVERAGE 1.59 percent BEGIN END RATE 10/08/95 PRESENT 1.5 percent
Verify the treatment of the strike fund benefits in prior years. Accept a taxpayer statement declaring no deduction was taken in prior years. Further research is necessary, if the taxpayer did not provide documentation or substantiation showing no prior income deduction was taken for any payments made into the selective strike fund.
If research indicates the taxpayer Then Claimed the standard deduction for the year of the amended return and the prior year Allow the claim. Itemized deductions for the year of the amended return or the prior year
Request the return(s) to verify no deduction was taken for the payments into the selective strike fund.
Allow the claim if no deduction was taken.
Took a deduction for the payments made into the selective strike fund in prior years Disallow the claim to the extent the taxpayer took a deduction for the payments made into the selective strike fund.
Coal companies may file a claim for refund of premiums paid to the UMWA Combined Benefit Fund (the Combined Fund). Even though the amounts paid are premiums and were not paid to the Service, the companies are seeking a refund pursuant to the decision of the United States Court of Appeals for the Fourth Circuit in Pittston Co. v. United States, 199 F.3d 694 (4th Cir. 1999). In that decision, the Fourth Circuit held that the premiums are taxes and that it was appropriate for a coal company to bring a tax refund action to seek a refund of premiums that it contests were wrongly assessed.
Check the taxpayer's address, if address did not originate in the Fourth Circuit ( that is, did not originate in Maryland, North Carolina, South Carolina, Virginia, or West Virginia) research to determine if taxpayer may have moved and may in fact be eligible. Additional research (e.g., CC IRPTR) needs to be completed prior to disallowing the claim. If the claim did not originate in the Fourth Circuit, disallow it. Send Letter 105C, Claim Disallowed, include the following information: "We disallowed your claim for refund of premiums paid pursuant to IRC Section 9704 of the Internal Revenue Code to the United Mine Workers of America Combined Benefit Fund. The Service is not following the decision of the Fourth Circuit in Pittston Co. outside the Fourth Circuit." Route the claim to Files to be filed in the Alpha File. If case is on Correspondence Imaging System (CIS), the CIS image is the source document and it remains on CIS for further recall if needed. Since the image will remain available on CIS, Alpha File association is not necessary. For additional information pertaining to CIS refer to IRM 18.104.22.168, Correspondence Imaging System (CIS) procedures.
If the claim originates in the Fourth Circuit, refer to Examination as Category A. They will contact Chief Counsel and make an initial determination of whether the claim has merit.
If the claim does not have merit, they will disallow it. When the disallowed claim is returned by Examination, send Letter 105C, include the following information: "We disallowed your claim for refund of premiums paid pursuant to IRC Section 9704 of the Internal Revenue Code to the United Mine Workers of America Combined Benefit Fund. You have not alleged a ground for which a refund can be granted." Route the claim to Files to be filed in the Alpha File. If case is on Correspondence Imaging System (CIS), the CIS image is the source document and it remains on CIS for further recall if needed. Since the image will remain available on CIS, Alpha File association is not necessary. For additional information pertaining to CIS refer to IRM 18.104.22.168, Correspondence Imaging System (CIS) procedures.
If the claim appears to have some merit, Examination will suspend the claim until a final determination is made. Because coordination with the Combined Fund and the Social Security Administration may be necessary, there may be some delay in making a final determination.
A disabled veteran is a veteran who applied for disability benefits from the Veterans Administration (VA) and their application was approved. The veterans disability compensation is a tax-free compensation paid by the Veterans Administration (VA) to veterans who have become disabled or chronically ill during their military service. This monetary benefit is based on an injury or disease incurred or aggravated during active military service. These disabilities are considered to be "service-connected" or "service related" . The veteran must have been terminated through separation or discharge from the military under conditions that were other than "dishonorable" . The disability compensation varies with the degree of the disability and the number of dependents, and is paid monthly by the VA.
The VA determination process can take several months, and sometimes years. VA benefits are retroactively excluded from gross income from the date of the application for VA disability. The VA disability benefits are expressed in percentages, intended to represent the degree of impairment in the veteran's earning capacity. A veteran who receives retirement benefits and is later retroactively determined by the VA to be eligible for "service-connected" disability benefits, may exclude from their gross income the amount of their disability benefits from their military retirement pay. The effective date applies to any additional award for retroactive benefits. In general, military retirement benefits are based on length of service and included as income, whereas veterans benefits on a "service-connected" disability are excluded from income. Veterans may file claims for refund of taxes paid on the retroactive amounts of VA benefits for prior years covered by a waiver, back to the earliest year not barred by the Statute of Limitations, for additional information, refer to IRM 18.104.22.168.20.1, Extension of the Statute of Limitations to File Claims for Refunds Relating to Disability Determinations by the Department of Veterans Affairs (Section 106 of Public Law 110-245 and Section 6511(d) of the Code). To file a claim, the veteran must submit a Form 1040X, Amended U.S. Individual Income Tax Return for each year they wish to reduce the taxable pay, and a VA Determination letter covering those years. Refer to Publication 525, Taxable and Nontaxable Income. Before inputting the adjustment review the account for any previous adjustment.
If claim references "Internal Revenue Service Section 1.122-1" or "Pursuant to 26 CFR" , refer to procedures in (7) below. If the claim references "Combat Related Special Compensation" (CRSC) or "Concurrent Receipt of Disability Pay" (CRDP), refer to procedures in (8) below.
Review claims for completeness following the guidelines in IRM 21.5.3, General Claims Procedures.
If Then The statute is barred
Disallow the claim.
Refer to IRM 25.6.1, Statute of Limitations Processes and Procedures.
The claim is not for a retroactive exclusion of VA benefits
Disallow the claim, send Letter 105C, and use Reason Code (RC) 016.
Refer to IRM 21.5.3, General Claims Procedures.
Section 6511(h), as amended effective July 22, 1998, by Section 3202 of Restructuring and Reform Act of 1998, suspends the running of the statute of limitations for filing claims for refunds if an individual taxpayer was financially disabled; i.e., was unable to manage his or her financial affairs by reason of a medically determinable physical or mental impairment. If the taxpayer's condition can be expected to result in death, or has lasted or can be expected to last for a continuous period of not less than 12 months, then the statute of limitations is suspended for the period of financial disability. However, this special rule does not apply to suspend the statute of limitations when the individual's spouse or another person is authorized to act on behalf of the individual in financial matters. Rev. Proc. 99-21, 1999-1 C. B. 960, describes the information that must be furnished as proof of financial disability.
For a joint income tax return, the applicability of Section 6511(h) to each spouse must be separately determined. A taxpayer will not be treated as financially disabled if his/her spouse is authorized to act on his/her behalf.
A copy of an official VA Determination letter granting the retroactive benefit, with the table showing amount withheld and effective date, must be attached to the claim. The table listed on the VA Determination letter must cover the same dates for the tax year reported on the claim. If the required documentation is not attached, return the claim as incomplete using the Letter 178C and input transaction code (TC) 971 with action code (AC) 270 (use current date in Trans-DT field), refer to IRM 21.5.3, General Claims Procedures. If the claim is received within 180 days of the statute barred date, refer to IRM 22.214.171.124.20.1, Extension of the Statute of Limitations to File Claims for Refunds Relating to Disability Determinations by the Department of Veterans Affairs (Section 106 of Public Law 110-245 and Section 6511(d) of the Code) and IRM 126.96.36.199.3, Tax Decrease and Statute Consideration.
To verify and calculate the correct tax reduction, the VA determination letter must have a table listing the "Amount Withheld" and the "Payment Start Date" , could also be listed as "Effective Date" . In general, the VA Determination letter will list a table containing five headings, we only use the "Amount Withheld" and the "Payment Start Date" or "Effective Date" when verifying/calculating the tax reduction.
You must add one month to the dates listed under the heading of "Payment Start Date" or "Effective Date" . The payment date or effective date for the military is one month after the date listed.
Example of the table:
Total Award Amount Amount Withheld Monthly Entitlement Amount Payment Start Date (or) Effective Date Reason For Change $525.00 $320.00 $205.00 December 1, 2008 Retired Pay Adjustment, Cost of Living Adjustment $750.00 $250.00 $500.00 December 1, 2009 Retired Pay Adjustment, Compensation Rating adjustment, Cost of Living Adjustment $950.00 $300.00 $650.00 June 1, 2010 Retired Pay Adjustment, Compensation Rating adjustment $970.00 $270.00 $700.00 December 1, 2010 Retired Pay Adjustment, Compensation Rating adjustment. Cost of Living Adjustment
Below are two examples on how to verify/calculate the correct amount for the tax reduction using the example of the table listed above:
Form 1040X filed for tax year 2009. The Amount Withheld for tax year 2009 is $3,840.00. To calculate and verify the amount multiply the 2009 Effective Months by the Amount Withheld, Jan. - Dec. (2009) is 12 months X $320.00 (Amount Withheld) = $3,840.00, this amount should be the amount claimed as a reduction on Line 1 Adjusted Gross Income (AGI), Column B of the 2009 Form 1040X.
Form 1040X filed for tax year 2010. The compensation was increased on June 1, 2010 therefore two calculations are needed to verify and calculate the 2010 total. The Amount Withheld for tax year 2010 is $3,300.00 ($250.00 for 6 months (Jan. - June) and $300.00 for 6 months (July- Dec.)). Multiply the 2010 Effective Months Jan. - June $250 X 6 months = $1,500.00 and July - Dec. $300.00 X 6 months = $1,800.00. Add the two totals together $1,500.00 and $1,800.00= $3,300.00, this amount should be the amount claimed as a reduction on Line 1 (AGI), Column B of the 2010 Form 1040X.
Disallow any claim citing "Internal Revenue Service Section 1.122-1" or "Pursuant to 26 CFR" , unless the VA Determination letter is included with the claim and has a table as shown above in (5). The table listed on the VA Determination letter must cover the same dates for the tax year reported on the claim. If the table does not cover the same dates for the tax year reported on the claim, disallow the claim. If the VA Determination is included and the table covers the same dates as the tax year reported on the claim verify/calculate the correct amount for the tax reduction following procedures in IRM 18.104.22.168.20 (5) and (6) above, the adjustment is not based on the taxpayer's claim for "Internal Revenue Service Section 1.122-1" or "Pursuant to 26 CFR" .
"Internal Revenue Service Section 1.122-1" or "Pursuant to 26 CFR" is the Family Protection Act of 1966 and is NOT applicable to VA claims.
Combat Related Special Compensation (CRSC) and Concurrent Receipt of Disability Pay (CRDP) are programs managed by the Army, Navy, Air Force or Marines for retired veterans. CRSC payments are non-taxable and CRDP payments are taxable. The taxpayer could be eligible for both payments, they must elect which payment they want since payment of both benefits is prohibited by law. The taxpayer must attach the Defense Finance and Accounting Service (DFAS) Letter and the appropriate copies of the Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRA's, Insurance Contracts, etc., to claim a refund of taxes paid on the excludable amount, before adjusting the military retirement pay from taxable to non-taxable.
Effective October 2009 the Department of Veteran Affairs added three medical diagnoses that would be considered Agent Orange presumptive in Vietnam veterans (Parkinson's disease, a type of ischemic heart disease, and certain leukemias). When a military member has a disability that is combat-related (e.g., one that is Agent Orange presumptive), they may qualify for Combat Related Special Compensation (CRSC). According to Defense Finance and Accounting Services (DFAS) many Vietnam veterans have been issued retroactive CRSC awards based on the Veteran Affairs determination. Each Branch of the military will make it's own determination as to whether a veteran qualifies for CRSC and will issue the veteran an award letter. The veteran will also have documentation from Veteran Affairs regarding their disability. There is a special statute of limitation in these situations refer to IRM 188.8.131.52.20.1, Extension of the Statute of Limitations to File Claims for Refunds Relating to Disability Determinations by the Department of Veterans Affairs (Section 106 of Public Law 110-245 and Section 6511(d) of the Code). The retroactive CRSC award could have the effect of reducing previously reported taxable military retirement income, creating a situation where the veteran may be eligible for a refund from prior year tax returns. DFAS will not issue amended Form 1099-R's for these prior tax periods, but the veteran should receive correspondence explaining the awards and possible adjustments. The veteran should include copies of their VA determination letter, their CRSC award letter, prior Form 1099-R's, and any correspondence they have received explaining the awards and adjustments. Resources are available for veteran's seeking assistance regarding how to file his/her amended returns at www.irs.gov, key words disabled veteran.
If Then DFAS Letter and the appropriate copies of the Form 1099-R, is included with claim. Prior to adjusting the account refer to Exhibit 21.5.3-2, Examination Criteria (CAT-A) – General. DFAS Letter and the appropriate copies of the Form 1099-R, is not included with claim. Refer to IRM 22.214.171.124.6.3, No Consideration Procedures, and include the following in the Letter 916C "The Defense Finance and Accounting Service (DFAS) Letter and the appropriate copies of the Form 1099-R, must be included with your claim. "
There are special statutes of limitation for retroactive disability determinations made by the Veterans Administration (VA). In general, a taxpayer must file a claim for credit or refund within three years of the filing of the tax return or within two years of the payment of the tax, whichever expires later (if no tax return is filed, the two-year limit applies). A claim for credit or refund that is not filed within these time periods is rejected as untimely.
Generally, military retirement benefits based on length of service are included in income, whereas veterans' benefits based on a service-connected disability are excluded from income. If an individual receives includible retirement benefits and is later retroactively determined to be eligible for service-connected disability benefits, the portion of the retirement benefits attributable to the disability is retroactively excluded from income. In that case, the individual may claim a refund of the tax paid on the retroactively excluded benefits, subject to the statute of limitations on filing a refund claim.
This provision extends the time period for filing claims for credits or refunds for retired military personnel who receive disability determinations from the Department of Veterans Affairs (e.g., determinations after the tax return is filed). Specifically, in the case of a determination after the date of enactment (June 17, 2008), the provision extends the period for filing such a refund claim until one year after the date of the disability determination (if later than the time periods allowed under present law). The one year extended period applies to claims for credit for refund filed after June 17, 2008, and does not apply to any tax year that began more than five years before the date of determination.
Taxpayer retired in 2006 and received a pension based on years of service. On 8/3/2012, they received a determination of service-connected disability retroactive to 2006 from the VA. Generally, they could claim a refund for the taxes paid on their pension for 2009, 2010 and 2011. However, under the special limitation period, they can also file a claim for 2008 as long as they file a claim by 8/3/2013. They could not file a claim for 2006 and 2007 because those tax years began more than five years before the determination by VA.
The provision is effective for claims for credit or refund filed after June 17, 2008. In the case of a determination which is made by the Secretary of Veterans Affairs after December 31, 2000, and before June 17, 2008, the period for filing a claim for credit or refund is extended until 1 year after the Date of Enactment June 17, 2008. Refer to IRM 18.104.22.168.2.11.1, Retroactive Law and Congressionally-Provided Wavier of the Period of Limitations for Filing Claims for Credit or Refund for procedures on how to override the Refund Statute Expiration Date (RSED).
Veterans who are separated from military service due to medical or disability reasons generally receive a severance pay. These veterans are not military retired. Public Law 104-201, Section 653(b) provides that once the veteran receives a determination letter from the Veterans Administration (VA) awarding a retroactive disability rating, the disability severance payment received upon discharge becomes nontaxable.
To claim the reduction in disability, the veteran must submit the VA Determination letter confirming the disability. Verify the reduction is a disability severance pay and not another type of military severance payment, refer to IRM 22.214.171.124.20.3, Veterans Involuntarily Discharged- Nondisability Severance Pay. The letter the veteran receives from the VA concerning other types of military severance pay is different then the five column letter discussed in IRM 22.214.171.124.20, Veteran's Disability Compensation - Public Law 95-479, Section 301, this severance pay letter usually has two columns and the first paragraph starts with: "We made a determination on your claim for an increase in your service connected compensation received on …date."
Veterans who are discharged with a nondisability severance payment could also receive a disability rating from the VA, in this is case the nondisability severance payment would be taxable.
If taxpayer fails to submit a complete claim, signed Form 1040X, Amended U.S. Individual Income Tax Return and the VA Determination Letter, refer to IRM 22.214.171.124.2, Tax Decrease or Credit Increase Processing or IRM 188.8.131.52.3, Tax Decrease and Statute Consideration as applicable.
Normal statute of limitations applies to these claims. IRM 220.127.116.11.20.1, Extension of the Statute of Limitations to File Claims for Refunds Relating to Disability Determinations by the Department of Veterans Affairs (Section 106 of Public Law 110-245 and Section 6511(d) of the Code), is not applicable for claims when the Veteran is not receiving retired military compensation.
Prior to adjusting the account refer to Exhibit 21.5.3-2, Examination Criteria (CAT-A) – General Examination Criteria (CAT-A) - General, Category A Criteria for Income -Changes of any income from taxable to non-taxable.
The VA Determination letter must be submitted with the claim to confirm the disability prior to processing the claim.
Nondisability severance pay is fully taxable in the year the veteran received the pay. This pay is generally a lump-sum payment specifically authorized by law to certain commissioned and warrant officers who are involuntarily discharged from active duty.
Payments under the Department of Veterans Affairs (VA) Compensated Work Therapy (CWT) program are no longer taxable and disabled veterans who paid tax on these benefits can claim refunds, subject to the statute of limitations, by filing an amended return using the IRS Form 1040X, Amended U.S. Individual Income Tax Return.
Information may be received indicating a taxpayer is deceased. Verification needed prior to updating the entity includes one of the following:
Court certificate
Death certificate
The return indicating the taxpayer died during the tax period
Refer to IRM 22.214.171.124.2, Documentary Evidence, for additional information.
Update the entity ONLY for the year in which the taxpayer died. Enter "DECD" in the name line after the:
Given name of deceased taxpayer on joint account
Surname of the taxpayer on an individual account and
Enter the name of the surviving spouse and/or representative as a second name line
Update the mail file requirements (MFR) to "08" by input of a Transaction Code (TC) 540 on the tax period using Command Code (CC) REQ77 if:
Primary taxpayer on a joint return died during the tax period shown on the return
Taxpayer on an individual return died during the tax period shown on the return
DO NOT input TC 540 to update the mail file requirements if the taxpayer died during the processing year (current calendar year) and no return was filed.
The Office of Privacy, Governmental Liaison and Disclosure (PGLD), has developed Action Codes (AC) for use with Transaction Code (TC) 971 to mark the entity modules of accounts on which identity theft is a factor and/or suspected and documented. The TC 971 and AC 524 are posted to IDRS on ENMOD. Do NOT update the date of death on a decedent account with TC 971 and AC 524 - Locking of a deceased taxpayer's account. The TC 971 AC 524 indicator is applied systemically to the account and prevents a return from posting in a year subsequent to the year of death. For example: Date of death 3/15/2012, a return for TY 2012 will post but a return for 2013 will not be allowed to post. The TC 971 AC 524 prevents an original TC 150 tax return from posting. When a tax return is rejected a CP 01H, Identity Theft Lock notice is mailed to the taxpayer. The Identity Protection Specialized Unit (IPSU) toll-free number 1-800-908-4490 is on this notice. Refer to IRM 22.214.171.124.22.3, CP 01H Decedent Account Responses.
Correct the address to reflect the most current information available. Correct the entity if the taxpayer is erroneously coded as deceased. If TC 540 is present, reverse with a TC 542.
If documentation from the Social Security Administration shows the date of death on the entity to be wrong, input CC DM1DT to change the date of death. Refer to IRM 2.3.25, Command Codes DM1DT and DTVUE, for command code input.
To substantiate the date of death (DOD) is incorrect, taxpayers must provide documentation from the Social Security Administration for verification. When the documentation is provided allow the exemption and use Command Code (CC) DM1DT to add, change, or delete data to correct the DOD. CC DM1DT overrides an SSA DOD. After using CC DM1DT, the DOD field on CC INOLE will be replaced with the IRS DOD. To delete a DOD, update CC DM1DT to add a DOD of all zeroes (000-00-0000).
Decedent overpayment returns filed by anyone other than the surviving spouse must be filed with Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, or a certificate showing court appointment. No documentary evidence is required if the return is filed by the surviving spouse. If an amended return is filed, ensure that the spouse filing the amended return is the same spouse who signed the original return. Refer to IRM 126.96.36.199.2, Documentary Evidence for procedures on identifying a correctly completed Form 1310.
If the overpayment is ≡ ≡ ≡ ≡ ≡ , do not request documentation.
If the return is filed by Then Personal representative appointed or certified by a court A copy of the court certificate or a Form 1310 stating a certificate was filed must be attached. Other than the surviving spouse or court certified personal representative Form 1310 must be attached and lines 1 through 3 must be completed.
If there is no frozen credit on the account, refile Form 1310 with a transaction code (TC) 290 .00 in a non-refile blocking series.
Update the entity module, if necessary, to agree with the Form 1310 information (e.g., first and second name lines, address, mail file requirements, etc.). Refer to IRM 21.4.3, Returned Refunds/Releases.
During original processing, if there is no reply to correspondence, the refund is frozen by input of Computer Condition Code (CCC) "3" . A history item, "NRF1310" may be on the module. Take caution to secure the Form 1310 or court certificate prior to releasing a frozen refund.
When a taxpayer dies during the tax period, certain procedures must be followed to ensure a correct refund is issued. In order for a computer generated refund check to be issued to the correct person, the account must have all of the following present:
Current year entity reflecting first and second name lines. The second name line must be present for a computer generated refund, if not present a manual refund is required.
Computer Condition Code (CCC) "L" or "W" present.
All required supporting documents. If both taxpayers on a joint return (FS 2), or a solo taxpayer (FS 1, 3, 4, or 5) is deceased, Form 1310 or court appointment documentation must be attached to the return if the account is overpaid.
Make sure the term "DECD" is after the first name of the decedent on a joint (FS 2) account (i.e., John Decd and Mary Jones). When both taxpayers are deceased the term "DECD" is behind both first names (i.e., John Decd and Mary Decd Jones). When taxpayers have different last names "DECD" is after the last name of the primary taxpayer and after the first name of the secondary taxpayer (i.e., John Jones Decd and Mary Decd Smith). For returns other than a joint return, the term "DECD" is behind the surname (i.e., John Jones Decd). Only surviving spouses and representatives should appear on the second name line.
Do NOT change the name line to replace the term "DECD" with "Estate of" under any circumstances and do NOT remove the term "DECD" from the entity.
A manual refund is needed if an adjustment to a decedent account results in an overpayment and ANY of the conditions listed in (3) above are not met:
This prevents the issuance of a refund to a deceased person.
Follow manual refund procedures in IRM 21.4.4, Manual Refunds.
When issuing a manual refund on either Form 5792, Request for IDRS Generated Refund (IGR) or Form 3753, Manual Refund Posting Voucher, to a person or address other than what is exactly shown on Master File (CC ENMOD or INOLE), input a transaction code (TC) 971 with action code (AC) 037, and the Social Security Number (SSN) of the person receiving the refund, unless the refund is being issued to Surviving Spouse, an Executor or court appointed Administrator of a decedent.
Use hold code "4" to hold the notice if a manual refund is issued.
Do not address correspondence to a deceased person.
When there is reason to believe the claimant is not entitled to the refund, or a controversy may arise concerning the proper payees. Take the following actions:
Send the appropriate letter requesting adequate documentation.
Suspend the case for 40 days.
Close the case, using hold code 4 to create a "-K" freeze, if no reply is received.
Notify the claimant(s) no action was taken because he or she did not respond to our letter.
This is a no consideration issue, not a claim disallowance.
The Office of Privacy, Governmental Liaison and Disclosure (PGLD), has developed Action Codes (AC) for use with transaction code (TC) 971 to mark the entity modules of accounts on which identity theft is a factor and/or suspected and documented. The TC 971 and AC 524 are posted to IDRS on ENMOD. Do NOT update the date of death on a decedent account with TC 971 and AC 524 - Locking of a deceased taxpayer's account. The TC 971 AC 524 indicator is applied systemically to the account and effective the subsequent year. The TC 971 AC 524 prevents an original TC 150 tax return from posting. When a tax return is rejected a CP 01H, Identity Theft Lock notice is mailed to the taxpayer. The Identity Protection Specialized Unit (IPSU) toll-free number 1-800-908-4490 is on this notice. Refer to IRM 188.8.131.52.22.3, CP 01H Decedent Account Responses.
The Office of Privacy, Governmental Liaison and Disclosure (PGLD), has developed Action Codes (AC) for use with transaction code (TC) 971 to mark the entity modules of accounts on which identity theft is a factor and/or suspected and documented. The TC 971 and AC 524 are posted to IDRS on ENMOD. Do NOT update the date of death on a decedent account with TC 971 and AC 524 - Locking of a deceased taxpayer's account. The TC 971 AC 524 indicator is applied systemically to the account and effective the subsequent year. The TC 971 AC 524 prevents an original TC 150 tax return from posting. When a tax return is rejected a CP 01H, Identity Theft Lock notice is mailed to the taxpayer. The Identity Protection Specialized Unit (IPSU) toll-free number 1-800-908-4490 is on this notice.
Taxpayer's date of death on ENMOD is 6/03/2011. Taxpayer is deceased in tax year 2011, therefore a final return would be allowed for tax year 2011. In this example, the indicator becomes effective on 1/01/2012. Any amended returns filed for tax years 2011 and prior, follow normal adjustment procedures for decedent claims and if applicable issue manual refund. If a claim is filed for tax years 2012 or subsequent, do not adjust the account follow the "No Consideration" procedures below.
Procedures for CP 01H replies:
If And And Then A taxpayer calls stating they received a CP 01H notice Date of death is present on the account Instruct the taxpayer to send all the required documentation outlined in the CP 01H notice to the address on the notice. Refer to IRM 220.127.116.11(5), Responses to Identity Theft and Data Loss Notification Letters/Notices. Date of death is not present on the account Apologize to the taxpayer and inform them we will correct their account and to resubmit their tax return. Prepare a Form 4442, in Section B Proposed Resolution, instruct Entity to "Reverse TC 971 AC 524 date of death not present" . Route the Form 4442 to the Entity Function in Submission Processing, refer to IRM 3.10.72-3, Computer Paragraph (CP) Notices - Routing Guide. A paper claim is received Taxpayer is providing the required documentation listed in IRM 18.104.22.168(5), Responses to Identity Theft and Data Loss Notification Letters/Notices Date of death is present on the account Process the claim following normal adjustment procedures. Date of death is not present on the account Process the claim following normal adjustment procedures. Prepare a Form 4442, in Section B Proposed Resolution, instruct Entity to "Reverse TC 971 AC 524 date of death not present" . Route the Form 4442 to the Entity Function in Submission Processing, refer to IRM 3.10.72-3, Computer Paragraph (CP) Notices - Routing Guide. The taxpayer does not include the CP 01H or required documentation Date of death is present on the account and the claim is for a prior tax year Process the claim following normal adjustment procedures. Date of death is present on the account and the claim is for a subsequent tax year Do not adjust the account, refer to IRM 188.8.131.52.6.3, No Consideration Procedures and issue a 916C letter using both open paragraphs "Q" and "R" and use the language provided in paragraph (2) below. Date of death is not present on the account Process the claim following normal adjustment procedures. Prepare a Form 4442, in Section B Proposed Resolution, instruct Entity to "Reverse TC 971 AC 524 date of death not present" . Route the Form 4442 to the Entity Function in Submission Processing, refer to IRM 3.10.72-3, Computer Paragraph (CP) Notices - Routing Guide.
Open paragraphs to use in the 916C "No Consideration" letter:
"The IRS has locked your account because the Social Security Administration (SSA) informed us that the Social Security number of the primary or secondary taxpayer on the tax return belongs to someone who was deceased prior to the tax year shown on the tax form. Our records are based on information we received from SSA."
"If taxpayer was erroneously identified by SSA as deceased: Contact SSA and obtain an SSA 2458 letter. Send the SSA letter along with the tax return with original signature(s), and a photocopy of one of the following; Passport, Driver's License, Social Security Card, or other valid U.S. Federal or State Government issued identification to the IRS where you filed your tax return."
IRC Section 692 provides for the forgiveness of certain Federal income taxes for certain U.S. military and civilian employees who are killed or die of injuries received as a result of military or terrorist action. For additional information, refer to Publication 3, Armed Forces' Tax Guide and Rev. Proc. 2004-26 (2004-19 I.R.B. 890).
The following subsection includes procedures for processing claims/returns received under IRC Section 692.


text:
Maturity Ratings
Each Second Life destination has a maturity rating of General, Moderate, or Adult. You can choose to show or hide destinations based on their maturity rating.
Learn more about maturity ratings.
Looking to dress up your avatar in Second Life with the latest styles? Shop for the latest in fashions and clothes at one of these fine stores.
Page 16 of 18
Viviane Fashion
Viviane Fashion offers designer clothes at reasonable prices. The mainstore area includes a wide variety of dresses, shoes, hair, and skins. VF also marks many of its older collections down to L$10, making it a great stop for newbies.View this destination »
Sweeter Than Candy
Sweeter Than Candy offers cute and casual women's clothing at reasonable prices.View this destination »
With such a bright, dazzling build, it's easy to forget that Epic carries a wide variety of fantasy-inspired shoes, shirts, and accessories that are great for the fashion-forward elf.View this destination »
Unzipped & Steam Powered Nuts
These two stores have merged steampunk with other fashion styles to offer a large selection of unique outfits, armor, weapons, and vehicles.View this destination »
Milky Kimono Center
Explore the many stores with Asian-inspired outfits, costumes and accessories at Milky Kimono Center.View this destination »
INDI Designs
Both men's and women's attire is available at INDI, a store where you can also acquire hair, footwear, accessories, and a basement full of discounted items.View this destination »
22769 Casual Couture
22769 Casual Couture carries a large range of casual unisex clothing along with various costumes for roleplay. But the real draw is the chill-out cafe and "Lust4art" gallery in the backyard, managed by a friendly staff who love to chat.View this destination »
K2K United Enterprises
With its European-style urban setting, K2K features a quirky selection of clothing and appearance items for your Second Life avatar including full outfits, skins, and accessories. Designed with a good dash of humor in mind.View this destination »
JLZ Designs
JLZ Designs offers a nice selection of formal, casual and urban wear, as well as accessories, for men and women at affordable prices.View this destination »
N-Creation encourages its patrons to "create their own style," with a wide selection of belts, bracelets, collars and other accessories.View this destination »
Page 16 of 18

subset: commoncrawl


text:
The Flint Police Department teamed up with several other agencies to get the most violent criminals off the street.
The collaborative initiative called the Violent Crime Reduction Partnership, or VCRP, is led by the Bureau of Alcohol Tobacco and Firearms, or ATF.
The unit operated out of one location and "flooded" crime scenes in which suspects used firearms.
Flint's crime rate is the highest in the nation
In a speech announcing the results of the 4 month sting, ATF Agent David McCain explained the need to choose Flint despite it being a much smaller city than others on the list.
"During the sting, 130 arrests were made, 125 firearms were recovered, more than 10,000 grams of drugs was confiscated," McCain said.
The 130 suspects arrested had 823 prior arrests.
Flint is currently the only city in Michigan the VCRP is targeting.
Flint Chief of Police Alvern Lock praised the added help.
Copyright WNEM 2012 (Meredith Corporation). All rights reserved.
Taco Bell is offering an unusual contest prize: a "lifetime" of free food at its restaurants.More >
Taco Bell is offering an unusual contest prize: a "lifetime" of free food at its restaurants.More >


text:
Team Blue Elephant by Team Blue Elephant - 3 months ago
"This photo was taken at the finish line of the Keys 100. I ran 100 miles from Key Largo to Key West on 5/17-18/2014. The guys were my amazing crew! We had team shirts made by CustomInk.com for the event. The shirts were so amazing that other runners and their crews wanted them! The shirts not only looked great, but were extremely comfortable! They also made it easy for me to spot my crew as I came into different check points. We will definitely have more shirts done by CustomInk.com for future races!!! "


text:
Signage is a science all its own. There are volumes of research on the subject. And it's little wonder why: signage is everywhere. In our daily life there are roadsigns, exit signs, information, and identification everywhere you look. So when you're designing your next Dreamwalls Glass Sign, in … [Read more...]
Viewer Needs in Glass Signage
Glass Sign Considerations
Signage is more than a pretty picture,...it's part of the larger marketing picture of a business. Choosing the right type of sign for your project is of the utmost importance for any organization. Choose glass for that type of sign when you want the highest quality with the most distinctive … [Read more...]
All Signs Point to Glass
Signage is all around us. It is used to help us find our way, to identify and inform. Increasingly, signage is an integral part of interior designs,...so it is required to be clear, convey information, and still be beautiful. It is important to determine the use of the sign before selecting the … [Read more...]
Glass Signage in Healthcare Design
Healthcare design. It's a strange concept when you think about it. Design isn't going to magically heal anyone through its beauty. However, if you've ever had to spend extended periods of time in a hospital as a patient, or as a family member of a patient, you realize when a healthcare environment … [Read more...]
pbc+l RDU sign
Signage at airports can be pretty dull. But pearce, brinkley, cease + lee architecture in Raleigh created something special for Raleigh Durham International Airport to welcome visitors and set the tone for the area as one of leading areas for technological advancements in the country. The first … [Read more...]


text:
> View this now
Published on: October 13, 2011
Type of content: EGUIDE
Length: 9 pages
Price: FREE
Analyzing large amounts of data has become essential to organizations in SAP environments, and businesses everywhere are faced with questions over how to adapt to new trends involving mobile technology, SAP in-memory computing and social media. This e-guide gives insight to SAP's application launch plans for the year. You'll learn:


text:
|Pines band holding annual fruit sale
The Northland Pines High School (NPHS) band is currently holding its annual fruit sale fundraiser. Proceeds from the sale will be used to help fund a band trip.
The past two years' funds allowed the band to perform at Disney's Epcot Center and participate in a professional recording workshop.
Students will sell fruit, as well as meat and cheese gift boxes, through Wednesday, Nov. 20. Orders will be available for pickup Friday, Dec. 6, from 3:30 to 6 p.m. and Saturday, Dec. 7, from 10 a.m. high shool scene shop.Payment is required upon ordering, unless ordered via email or phone.
|Tuesday, November 12, 2013 11:42 AM


text:
UNION TWP., Pa. - A two-vehicle collision closed a major interstate in Union Township on Thursday night.
State police say shortly after 8:00 p.m. a car with mechanical problems came to a near stop on Interstate 376 westbound.
That's when a pickup truck slammed into the back of the disabled vehicle.
The impact was so severe the pickup landed on its side.
The interstate was closed between Routes 224 and 422 while rescue crews cleared the scene.
The two drivers did not suffer serious injuries.
The road has since reopened.


text:
Sarah Grant
Musings on Poker and Other Stuff
Wheee WSOP
I'm heading to the Rio tomorrow for the first of what will be many trips to my summer homeland. It is such an interesting feeling each year, like going to summer camp when you where kid. One can't help but feel a mixture of emotions; excitement at the anticipation of seeing everyone and seeing lives changed, combined with a little nerves at the prospect of forgetting your own life for a few months and hopefully not messing up too bad. Speaking of messing up, I was just prepping to shoot the Welcome to the WSOP 2012 video today and I stumbled across some gems from last year.
Bloopers are always my favorite. Watching these made me miss my team so much! I wonder how many blogs I can have that are themed, I am so grateful to be in this business? But I feel like I am constantly reminding myself how lucky this whole journey has been. It got me thinking how we all keep changing and growing, but some things stay the same. Here is the blooper reel from my first tournament in front of the camera. My voice is literally at least 5 octaves higher than normal.
I want to thank my girls so much for showing me the ropes. Kristy Arnett & Lynn Gilmartin were already best friends and it would have been so easy for them to be caddy to me or at least not helpful. But it was the total opposite. The team at PokerNews is so amazing and I can't wait to spend the summer watching poker history happen before our eyes. This little gem pretty much explains how I feel.


text:
$99 for a Smoothie/Funnel Cake Party Package for Up to 50 People ($200 Value)
- Retail $200.00
- You save 51%
- You Pay $99.00
Expires 6 months from date purchased
Package Includes: 50 servings of your choice of: Delicious fruit smoothies, fresh squeezed lemonade, cookie shakes, slushees, iced coffee, funnel cakes, fresh fruit, & more (chose any combination as long as it equals 50). Made fresh at your event or party - home or office parties only. Fruit provided based on season availability. Serving time is up to 90 minutes for 50 servings. Standard power outlet required for blenders. Electrical outlets required for park parties. Servicing Orange County only. By reservation only - subject to availability. This voucher has no cash value. Cannot be combined with other offers. All services must be redeemed in 1 visit. Tax & gratuity not included.


text:
Here's Mobile Marketer's take on why agencies need to look past Facebook and Twitter for effective mobile, social campaigns.
JWT New York is branching out from advertising to play writing. The shop and Macy's has developed a "Yes,Virginia" musical, based on the classic animated film, that schools can use royalty-free. This is a promotion for the five-year anniversary of the shop's "Believe" campaign. Macy's is also giving 100 eligible schools $1,000 to offset the staging costs.
Coors Light and Discovery en Espanol joined forces on a new soccer TV series.
mOcean debuted creative director Christiane Brooks first work since joining the shop, and it's this campaign for bareMinerals skin-care brand. Brooks joined mOcean after working at DDB LA, where she worked on accounts including Smashbox Cosmetics, Hasbro Toys, and Wells Fargo Bank.
INNOCEAN USA hired three new people to help grow the shop's digital practice in VP roles: Peter Cole as director of creative technology, Uwe Gutschow as digital and engagement strategy director, and Lester Perry in digital account services.
Aegis Group's revenue for the first half of 2012 grew 15 percent to $947 million.


text:
Expect rain until Monday, says Met Office
KINGSTON, Jamaica — A trough over the western Caribbean will cause showers and thunderstorms over the island into next week, the Meteorological Service says.
Isolated showers and thunderstorms will affect hilly inland areas and western parishes today into tomorrow, the Met Service said Friday in its daily bulletin.
It forecast that the rain will increase on Monday when the tropical wave moves across the island.
1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper – email addresses will not be published.
2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.
3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.
4. Please do not write in block capitals since this makes your comment hard to read.
5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: firstname.lastname@example.com.
6. If readers wish to report offensive comments, suggest a correction or share a story then please email: email@example.com.
7. Lastly, read our Terms and Conditions and Privacy Policy


text:
Bryan Eisenberg | May 2, 2014 | Comments
This column comes in video form, with a visual explanation of how to design high-converting landing pages for mobile.
To create effective landing pages, you should understand the anatomy of a landing page and it should be part of your landing page and optimization framework. After optimizing thousands of landing pages over the years, I want to offer this framework for understanding the 10 key elements of a perfect landing page and how to use it. This same framework works for both desktop and mobile landing pages, with the caveat that mobile landing pages need to be more bite-sized.
1. Logo: The visitor needs some way to identify who they are potentially doing business with. A logo won't make your sale, but a poor one can lose your sale. A professionally designed logo always helps establish some bit of credibility. Most sites have this in the upper left-hand part of the page; some have it on the upper right.
2. Headline/UCP: The landing page headline should reinforce the scent from the ad that delivered your visitor to the page; that's persuasive momentum and likely should communicate in a simple statement to your value proposition (UVP) or your campaign proposition (UCP). Your headline can either be designed in a text format or graphical format; it doesn't really matter. Many marketers use a dynamic system to personalize their landing pages for the ad or key phrase that attracted the visitor in the first place, to have better continuity (scent) from ad to landing page. Dynamic tools work, but beware.
3. Offer: Direct marketers know that the offer is one of the most critical elements of a well-designed campaign. That is why they spend a lot of time testing their offers. Offers must be clear and concise. A maxim of direct mail is that a confused mind always says "no." The offer is the deal you're presenting to your visitor. Don't get this confused with a "call to action," which is the action you want the person to take. Sometimes the offer is actually delivered successfully as the headline.
4. Descriptive Copy: What supporting copy do you need to explain what you do, what you offer, and how it will benefit your visitor? This is often a list of key features and/or benefits. Don't overlook formatting. Will the copy be delivered in block text, bullet point, or some combination of the two?
5. Product/Service Presentation: This is the imagery you use to support your copy and style for your page. This often takes the form of a product image, a product or service tour (photos or video), screen shots, or lifestyle images. A good picture can be worth a thousand words if you can use it to engage your visitor and give them a sense of what owning your product or service will be like. Likewise, poor-quality graphics or presentations can confuse or turn visitors away. A great image won't make your sale, but a poor one can help lose your sale.
6. Calls to Action: I break out calls to action into three types: hyperlinks, buttons, or forms. The objective of many landing pages is to get visitors to complete a form. If that is the case, make the form easy to complete on the landing page, and avoid requiring the visitor to take an extra step - and going to a form page - if possible. Other than your offer, this is an important piece to keep testing. Calls to action should stand out (think contrast) and be obvious from the moment a visitor lands on your page. The visitor should always know what the next step they should take is.
7. Confidence Building: A visitor will not convert if he doesn't have confidence or trust in you. There are dozens of factors that affect trust or confidence in your visitors on your pages, and dozens of things you can do to negatively impact trust and credibility. I'll cover only a few types of things you can add to boost confidence. Basic confidence-boosting elements can be the effective use of testimonials or customer reviews, leveraging examples of previous customers, using third-party validators (such as media mentions or reviews, as-seen-in references, or trust marks), and using point-of-action assurances near your call to action.
8. Contact Information: Share information on how to get in touch with you. This includes a phone number, address, locations, operating hours, etc.
9. Link to More Information: Many experts believe your landing pages shouldn't have any additional links other than your main call to action. I believe it depends on several factors, including the complexity of what you sell and the buying stage of your prospect (early-stage buyers tend to be in information-gathering mode not action-taking mode - so let them gather information). Don't blindly follow "best practices;" use your judgment and test alternatives.
10. Template Elements: These elements are usually found in the header or footer of a template. They may be your copyright notice, phone number, live chat, address, privacy or other policies, etc. These are usually not elements of the persuasion process, but many can be supportive. All pages should have easy contact information and privacy policies.
Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!
Bryan Eisenberg is coauthor of the Wall Street Journal, Amazon, BusinessWeek, and New York Times bestselling books "Call to Action," "Waiting For Your Cat to Bark?," and "Always Be Testing." Bryan is a professional marketing speaker and has keynoted conferences globally such as SES, Shop.org, Direct Marketing Association, MarketingSherpa, Econsultancy, Webcom, SEM Konferansen Norway, the Canadian Marketing Association, and others. In 2010, Bryan was named a winner of the Direct Marketing Educational Foundation's Rising Stars Awards, which recognizes the most talented professionals 40 years of age or younger in the field of direct/interactive marketing. He is also cofounder and chairman emeritus of the Web Analytics Association. Bryan serves as an advisory board member of SES Conference & Expo, the eMetrics Marketing Optimization Summit, and several venture capital backed companies. He works with his coauthor and brother Jeffrey Eisenberg. You can find them at BryanEisenberg.com.
October 16, 2014
November 3-6, 2014
November 11-12, 2014
Dec 2-4, 2014
IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.
The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.
September 17, 2014
12:00pm ET
September 23, 2014
1:00pm ET
September 30, 2014
1:00pm ET/10:00am PT


text:
We're pleased that according to our research, the customers who saw these responses have reacted favorably. However, there are still many people who haven't heard our beef quality facts.
David Owens - Chief Marketing Officer, Taco Bell
I do not consider myself anti-marketing, but I do find it difficult to imagine uttering the phrase "there are still many people who haven't heard our beef quality facts" without immediately questioning every personal and professional decision that led up to that moment.
(via whitneymcn)
I vow to never sleep until every person on Earth hears our beef quality facts.
This is terrible. Some marketers think that everyone on the planet should be forced to watch/listen/ingest their dumb advertainmentucational ideas. They should be stopped.
People should seek out your message, your product, your content. You shouldn't shove it in their face. This is the new way. Get on board.
(via sproutbox)
(via sproutbox)
Source: whitneymcn
3 Notes/ Hide
- dcspotter reblogged this from sproutbox
- yankeebangbang likes this
- sproutbox reblogged this from whitneymcn
- whitneymcn posted this


text:
Newcastle failed to reach Category One Status for our Youth Academy last summer when the new rules went into effect, and it was a huge embarrassment for the club, because other local clubs Sunderland and Middlesbrough were granted the status.
Joe Joyce – Newcastle Youth Academy manager
The Elite Player Performance Plan as it's called, was put into place last summer to try to bring through home-grown players and there four major reasons for the new structure:
- Allows clubs to have more coaching time with their youngsters Helps clubs create links with local schools to help young players get the best out of their football and academic education
- Helps clubs create links with local schools help young players get the best out of their football and academic education
- Allows clubs in category one to recruit youngsters from further afield than permitted under the former rules
- Clubs can work with the Football League to help determine compensation for youngsters
Recent clubs who made Category One status are Reading and Leicester and they made a big deal of it on their web-sites, but it looks as though Newcastle have made Category One Status but no announcement from the club.
And maybe that's because the club were embarrassed that we didn't make it in the first place, and an announcement will only bring attention to the fact we didn't make it twelve months ago when Sunderland and Middlesbrough did.
There is going to be just one National U21 National Division next season, the Barclays Under-21 Premier League, rather than the regional divisions that were in place last season, and it's composed of the 22 Category 1 Academies.
These are the club with that status:
Arsenal, Aston Villa, Blackburn Rovers, Bolton Wanderers, Chelsea, Everton, Fulham, Leicester City, Liverpool, Manchester City, Manchester United, Middlesbrough, Newcastle United, Norwich City, Reading, Southampton, Stoke City, Sunderland, Tottenham Hotspur, West Bromwich Albion, West Ham United and Wolverhampton Wanderers.
And the league fixtures have just been announced for next season, and Newcastle play Reading at the Madejski Stadium on 12th August, and it's a 7:00 pm lick off.
This information is taken directly from the official Premier League site, so there's no doubt we are now a Category One Academy – it's just that we didn't bother to announce it – so at the very least the Premier League thinks Newcastle are now a Category One Club.
But in any case, last summer we said Newcastle would be working very hard to correct what was a huge embarrassment, and it looks like the club have done just that.
It's been a good reaction from Newcastle United, and the club should really announce the news – even if it's just a one liner that keeps it low key.
Comments welcome.
Follow us on Twitter, like us on Facebook and +1 us on Google+:
You can also reach Ed at email@example.com


text:
[This is a story about Bob. Bob is not his real name, but he is a real person. The events here were gleaned from intermittent conversations and pieced together as accurately as I could.]
I'd never heard the term "lifestyle business" until I met Bob. It was a few years ago, not long after he started a software company with the goal of being bought out. I told him about my company, and that's when he introduced me to the term and explained the difference between a startup and a lifestyle business.
When I first met him, Bob was struggling to get off-the-shelf versions of his products to sell, so his company kept afloat by consulting – mainly providing customized implementations of their core product.
Finally they hit pay dirt when a golden trifecta of companies each bought multiple team licenses for his product. I won't name the golden trifecta, but the three companies make chips, make computers, and sell the software that runs the computers, respectively. This got the attention of some national players, and Bob's dream of selling his software company for a big payoff began to take shape.
Several suitors made preliminary offers, but one stood out. We'll called it BigInvestCo. It had a track record of success and made the best offer. So he said thanks but no thanks to the other outfits and settled on BigInvestCo.
Then things slowly went south. It seems that these masters of enterprise at BigInvestCo were con men in $2000 suits. They suggested that the buyout price would be in the "set for life" range. After Bob had said no thanks to the other suitors, BigInvestCo lowered the buyout figure by half – which still would have been very good money. Following that, they did the due diligence and the final offer was to be put together. And that's where things went bad.
The initial offer (which I assume was non-binding) was back in June, and BigInvestCo told Bob they hoped to close the deal by the end of the month. As part of the deal, he and his team would be given positions in a newly formed company, which would be a subsidiary of the BigInvestCo's existing business. But the existing channel partners would be replaced by their in-house sales channel, so there was no need to keep nurturing them. Those ties were severed.
The owner of a startup is the rainmaker. Bob had hired a few salespeople, but none of them had the passion and understanding of the products to close deals like Bob did. But with Bob spending weeks away from his business while trying to negotiate the deal, the sales pipeline started to dry up.
Every time the deal seemed to be on the verge of closing, BigInvestCo used all kinds of delaying tactics and legal maneuvers designed to eat up time and legal expenses for Bob. With the sales pipeline sufficiently dry, a payroll to meet, and Bob's finances getting tight, BigInvestCo came back with an offer at 10% of the June offer (i.e., 5% of the "set for life" figure).
I have to assume that hope overtook logic, because Bob plowed on, convinced he could still pull off a great deal for his company. Then one night, Bob's out for dinner and drinks with BigInvestCo's lawyer. After one too many, the lawyer let it slip that this is how these deals are done. They get the prospect all charged up, then as the deal progresses BigInvestCo does everything possible to bleed them out. When the seller is at the point of desperation, they make a lowball offer.
That was four months ago. I just found out the deal has gone tits up. I could tell it was painful, so I didn't press for details. I don't even know whether his company is still afloat.
At this point I suppose I could draw some conclusions or point out Bob's missteps along the way. I assume readers can do that themselves. But I do think that starting a company solely to sell out is a long shot. You're going up against people that do this for a living. They have deeper pockets, longer time lines, and less risk than you do. This is their game. They're better at it than you.
Meanwhile, my quaint little lifestyle business looks better every month.


text:
Want to Cream Your Pants, 1996 Style?
I get the Meigray Gameworn Jersey newslette, since I bought a Cody Mac jersey two years ago. This was sent to me today. If you have money to own a piece of history, BLOW IT ON ONE OF THESE (then at least thank me for sharing the link, since I don't have money to buy any of these)


text: Coming home from work and having to clean up an accident is not the ideal way to start your night. The Clean Go Pet Indoor Dog Potty will save you the time and energy used cleaning up the mess, the money on spent on cleaning and deodorizing products as well as the frustration. With the ability to hold up to two gallons of liquid this Clean Go Pet Indoor Dog Potty is one of the most absorbent indoor pet relief solutions. When you pet relieves themselves the liquid will drain through the mat and drainage grid then collects in the floor tray for easy disposal. Take the frustration and hours of cleaning out of your daily routine with the Clean Go Pet Indoor Dog Potty.


text:
Almost exactly a month ago, I shared a simple DIY inspiration for a denim woven rug or trivet and said I'd be back a week later with similar but different way to use up my denim strips. When I started typing up the how-to, I realized the way I went about constructing it wasn't ideal so I tried it again, this time with glue to help me and a couple lessons learned.
I think the parquet inspired look is very fresh and modern and you are sure to come up with a clever way to use an item like this, like as a small rug, trivet or table top pot holder (if you sandwich some batting in), table runner, placemat, wall hanging, and more. Just like my previous denim project, because of the construction, spot cleaning is recommended.
Specific measurements depend on what size rug you want to make. The backing fabric will be the exact finished size of the rug and the binding will be the total perimeter of the rug, plus a little extra for overlap. Mine was 2″ wide so I could have a 1/2″ wide binding in the end. For a rug with four rows like this, the base fabric starts as two pieces. The formula to determine measurements is as follows: length is total desired length of rug and width for each base fabric piece is the overall finished width divided by two plus 2″. For example, let's say you want a 16″ wide rug. You would cut two 10″ pieces (16/2+2). This factors in 1/2″ seam allowances.
First, glue one strip of denim on each base fabric piece to give you a starting point. One will be at a 30 degree angle, the other has to go in the opposite direction, at a 60 degree angle. And then continue gluing strips down at the angle set. (Note: I seamed two pieces of base fabric together to get the size I wanted.)
Continue until you have the base pieces completely covered. (Another note: If you look closely, you can see that I didn't cover those tiny bits in the corners of the bottom piece. Those little bits were well within my 1/2″ seam allowances so I decided against that extra bulk. Use your judgement depending on how your strip placements play out.)
Trim excess. Then cut the two pieces in half lengthwise to get four pieces.
Alternate the pieces in the parquet/herringbone/chevron inspired layout. Most glues state that you should wait for the glue to fully dry before stitching. I completed my project up to this point one evening and then finished the next day so I unintentionally followed the rules that time. Go with the manufacture's directions/warnings and/or your own intuition.
Stitch them together with 1/2″ seam allowances, pressing seams open in back.
I love it! Great tutorial!
Interesting, thanks for sharing!
Thanks for the tutorial! Nice way to re-use jeans :-) It looks unique!
This is really simple but effective! You are very clever! X
You inspired me to make a rug for my kitchen. I shared the link to your on my blog with my version of your rug. The photo of my rug is towards the end of my January post. http://skiingmama.wordpress.com/2014/02/03/january-2014/


text:
Seattle Seahawks quarterback Matt Flynn did not throw during Thursday's walk-through due to arm soreness, according to a tweet from ESPN's Liz Matthews.
The 27-year-old Flynn certainly can't be too happy with this development, as he's already seemingly falling behind rookie signal caller Russell Wilson in the quarterback derby. Head coach Pete Carroll elected to start Wilson in Seattle's third exhibition game this Friday against the Chiefs, a telling sign considering most coaches use the second-to-last preseason game as the dress rehearsal for their starters.
While Flynn (17-26, 102 yards, 1 TD, 1 INT) hasn't exactly played poorly by any standards, Wilson has simply generated more offense, completing 22 of his 33 passes for 279 yards and three touchdowns to just one interception. The former Wisconsin Badger has also added 92 yards on the ground, along with a rushing touchdown.
In terms of long-term health, Flynn's ailment is most likely very minor. But Aaron Rodgers' former caddy better prove that it won't hold him back on the field Friday if there's still any chance of him earning the Seahawks' starting job.
For more Seattle quarterback competition updates and all your Seahawks news, head over to Field Gulls.