Form 926 requires the foreign transferee's address. There are character limits for inputting different parts of the address. The street address exceeds the character limit for that field, even if I abbreviate. But if I add part of the street address to the city field, it all prints out in one box on the form, and the printed form looks fine. My question is: are these character limits set by the IRS, and if so, will adding part of the street address to the city field cause some type of error?
Yes, the character limits for fields on Form 926 (Return by a U.S. Transferor of Property to a Foreign Corporation) are generally set by the IRS and are enforced by tax preparation software to comply with IRS electronic filing requirements. The character limits ensure the data can be processed correctly by IRS systems.
The IRS sets specific character limits for each field on electronic forms to ensure that all information is transmitted and processed correctly. These limits are often smaller than what the printed form can visually accommodate.
As a coder myself, altering the format by placing part of the street address in the city field may look fine on the printed form, but it could cause issues with electronic filing. The IRS systems might not correctly recognize the address if information is placed in the wrong field, leading to errors or processing delays.
Recommended Approach:
Abbreviate Properly: Continue to abbreviate as much as possible while keeping the address accurate and recognizable.Use IRS Standards: Follow IRS standard abbreviations for addresses (e.g., "Street" becomes "St," "Boulevard" becomes "Blvd") to fit within the limits.
Validation Check: If using tax software, use any built-in validation tools to check for errors in address formatting. These tools can help ensure the address conforms to IRS requirements.
Manual Filing Option:
If the character limits are causing significant issues and the address cannot be properly inputted even with abbreviations, consider filing the form manually (paper filing). This approach would bypass the electronic limitations but may increase processing time.
I just print and mail. Hope it helps!
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