Paper Returns

When a paper return is required because the return cannot be e-filed, the federal and state return types must be set to a paper option, in the Return Type section of the Fee Summary .
The Site Activity Log should be annotated to indicate a paper return, and the reason why.
The reason why the return is being paper-filed should have already been entered in a note; if one doesn’t exist, create one.
Note for CA returns: Early in the tax season, Form 540s and/or supporting forms may be watermarked by TaxSlayer as “Do Not Mail”. That means that the printed version of the watermarked form has not been approved by the Franchise Tax Board and should not be mailed to the FTB. The taxpayer should not be given a second set of state forms for mailing. Instead, arrangements should be made with the taxpayer to receive a return to be mailed once the “Do Not Mail” watermark no longer appears.
On paper-filed returns, many non-dollar fields are not required, because paper tax forms will be attached to the return. However, unless you are an expert on paper-filed returns, it may be easier just to complete the forms in TaxSlayer as if the return will be e-filed.
In cases where the IRS rejected a return because the taxpayer’s primary/secondary/dependent SSN was used on another return that has already been filed, Form 14039, Identity Theft Affidavit, must be included with the paper return. (This form is available online, not in TaxSlayer.)

More information can be found on Pub 4012 page P-5, “IP PIN Guidance for Identity Theft Victims.”

Note for CA returns: If a Form 14039 has been prepared for the IRS, that form can also be submitted with the paper CA 540. If only the CA return has been affected by identity theft, then CA Form 3552, Identity Theft Affidavit , available online, should be prepared, to be filed with the paper CA return.

Warning: If the taxpayer asked for direct deposit of a refund, make sure the bank routing number and account number have not been X-ed out on Form 1040. If they have, then it’s recommended that the taxpayer attach a check to the paper return, marked “VOID – bank information for direct deposit”, with the routing number and account number circled prominently.
Note for CA returns: A paper return for CA requires a copy of the federal return, including schedules, to be attached if the federal return includes any Form 1040 schedule other than A or B. This probably requires printing selected pages from the PDF of the return.

The taxpayer(s) must sign the first page of the IRS 1040 AND the last page of CA Form 540 for the returns being mailed.

If the return involves a deceased taxpayer, see Pub 4012 page K-19, “Return Signature.”

Federal – collate according to Attachment Sequence No., at the top right of each supporting form for Form 1040.

This is normally the sequence that forms will be printed; you normally don’t need to rearrange the pages.

CA – collate according to numerical / alpha sequence, followed by the federal return, if required (as noted above, a paper return for CA requires a copy of the federal return, including schedules, to be attached if the federal return includes any Form 1040 schedule other than A or B).
Attach to the first page of 1040 and 540 returns:

Form W-2s (Fed – paper Form W-2s; CA – use machine-readable pages printed by TaxSlayer, if in the print set, instead of attaching paper Form W-2s)
Form W-2Gs, if tax was withheld (Fed / CA, respectively)
Form 1099-Rs, if tax was withheld (Fed / CA, respectively)
Any other forms showing tax withheld

Instruct the taxpayer to mail the returns with any payment vouchers and checks, but separately from any payments of quarterly estimated tax.
Mailing addresses are on page iv above (exception: if there is a W-7 form, the return is mailed to the address in the next section).

The taxpayer must complete and sign the W-7(s) that are printed with the paper return, and submit them together with required documents.

Reminder: In TaxSlayer, the page is at Federal Section > Miscellaneous Forms > Application for ITIN (Form W-7) [not reachable via the search box].
In TaxSlayer, the first page for W-7 information (asking the reason for filing the W-7) must be completed to avoid an error message. It’s possible that the taxpayer had on hand all information needed to complete the W-7 in TaxSlayer.

If one or more fields on the form are blank because a question(s) wasn’t answered in TaxSlayer, remind the taxpayer that Form W-7 is incomplete. Tell the taxpayer they must fill in these fields manually before submitting the Form W-7 with the tax return.

Cross-out on each 1040 page and supporting schedule and documents, the temporary SSN/ITIN entered by TaxSlayer (typically 000-00-0001).
If the taxpayer has a tax return with multiple Forms W-7, or multiple returns with one Form W-7, these forms should be staggered and stapled together to show the entire package as a family pack. This prevents separation of the forms/returns that could increase processing time.
The taxpayer must submit the paper return with the W-7 and required documentation, either by mail or in person.

PO Box 149342

Austin, TX 78714-9342

An advantage of applying in person is that documentation required to be submitted with the application can be returned immediately, and not lost in the mail. There are two options:

At a Taxpayer Assistance Center where in-person document review is provided. These locations are listed at irs.gov/help/tac-locations-where-in-person-document-verification-is-provided; note that they operate by appointment only. (This link is also on page 4 of the Form W-7 instructions.)
With an IRS-authorized Acceptance Agent [some of these are free; some charge a fee]. A list of agents can be found at irs.gov/individuals/international-taxpayers/acceptance-agent-program

For the state return, which also must be paper filed, the taxpayer has two choices:

If the taxpayer does not have tax due to the state, s/he can hold the state return until they receive their official ITIN letters, which may take 6-8 weeks.

Once they have their ITIN cards, they can record the ITINs on the state return and mail it in.

Alternatively, “Applied For” can be written in the SSN field, and the state return mailed immediately.

The taxpayer should contact the FTB (1-800-852-5711) once the ITIN is received, to make sure the tax return is properly processed.

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