3.0.101  Schedule K-1 Processing (Cont. 1)

3.0.101.14 
Schedule K-1 Processing Through SCRIPS

3.0.101.14.2  (01-01-2015)
Scanner Reject

  1. The scanner will print a one-character reject code to the left of the DLN area on any form that is routed to the Reject Bin. The rejected form will then be sent back to Batching.

    Note:

    Prior to sending to Batching, write the parent DLN in the upper left margin of the Schedule K-1.

    Form Reject Code Description
    44386 (Form 1041 Schedule K-1)
    44387 (Form 1065 Schedule K-1)
    44388 (Form 1120S Schedule K-1)
    M Mixed document type within . (e.g. Form 1041 Schedule K-1 -work)

3.0.101.14.3  (01-01-2015)
Loose Schedule K-1

  1. Loose Schedule K-1 will be received in a colored folder.

  2. After scanning, the SCRIPS operators will place back in blue gusset folders labeled "refile" and send to Post Doc Prep.

3.0.101.14.4  (01-01-2015)
Workstation Operations

  1. Refer to the IRM 3.41.274, General Instructions for Processing via SCRIPS, for a description of these and other items:

    • Keyboard Layout

    • Login/Logoff

    • Operator Statistics

    • Post-to-Close

    • Interrupt/Resume

    • Suspend/Resume

    • Status Line

  2. Whenever the IRM 3.41.274,, General Instructions for Processing via SCRIPS, and this IRM conflict, this IRM will take precedence.

3.0.101.14.5  (01-01-2015)
Form Identification (FI) Function

  1. The scanner will not recognize all documents. These documents are called non-conforming forms. They range from photocopies of official documents, that might be official forms but for some reason do not meet the official specification for measurement, homemade documents of varying formats, to non-Schedule K-1 forms. The FI function allows the workstation operator to identify the form to avoid rework at the scanner. The FI screen has an image on the left and an entry template on the right. The entry template permits the operator to select what form type the image is, or to delete a single image or an entire submission from further processing. The menus shown on the screen will vary depending on how your supervisor profiled you. For instance, if you are not profiled for the FI function, this option will not be present on the OE Function Menu.

3.0.101.14.5.1  (01-01-2015)
FI QUICK START

  1. From the Workstation Main Menu, select Original Entry (OE).

  2. From the Original Entry (OE) Image Selection Menu, select form from the Form Identification Selection Menu. See Figure 3.0.101-3.

    Figure 3.0.101-3
    This image is too large to be displayed in the current screen. Please click the link to view the image.
  3. From the Form Identification Selection Menu, Select Form 1041 K-1, Form 1065 K-1 or Form 1120S K-1. If you can identify the image, make the appropriate letter or number selection from the template. Depending on the form type the following will appear 1041, 1065, or 1120S.

  4. The first group of images from a Unit of Work (UW) requiring identification opens.

  5. If you need to stop FI:

    • Press the <CTRL>–<P> key combination (post-to-close) to end FI after completing the current UW.

    • Press the <CTRL>-<P> followed by F9 to suspend the block immediately.

    Note:

    For a complete list of key functions, see Exhibit 3.0.101-9.

  6. The system returns you to the Schedule K-1 Forms Identification Selection Menu when you complete the last image in the UW.

3.0.101.14.5.2  (01-01-2015)
FI Processing

  1. If you can identify the image, make the appropriate letter or number selection from the form template. Depending on the form type (1041, 1065, or 1120S), the following will appear.

    FI Processing Selections
    1 - Current Year Form 1041 K-1 (661108)
    2 - Prior Year Form 1041 K-1 (611107)
    3 - Breaker Sheet Form 1332
    X - Remove

    Note:

    If you receive an unrecognized Breaker Sheet (Form 1332), press X to remove the document from further processing.

    The <ACTION/Enter> key must be pressed to complete a selection.

  2. If you cannot identify the image, press <F9> to suspend the document for research. Some documents are scanned backwards. These will require research to determine exactly which document type they are. If the image is unprocessable, press <X> to remove the document from further processing.

  3. To end a session, press the <CTRL>-<P> key combination to set post-to-close. The system returns you to the Schedule K-1 Forms Identification Selection Menu when you complete the last image in the UW.

3.0.101.14.6  (01-01-2015)
Original Entry (OE) Function

  1. The OE function is used to manually key enter data from both scanned images and from paper documents. The menus shown on the screen will vary depending on how your supervisor profiled you. For instance, if you are not profiled for the OE function, this option will be grayed on the Workstation Main Menu.

3.0.101.14.6.1  (01-01-2015)
OE From Image QUICK START

  1. From the Workstation Main Menu, select Original Entry (OE).

  2. From the Original Entry (OE) Selection Menu, select Schedule K-1 OE Image Selection.

  3. From the OE Image Selection Menu, select Schedule K-1 form types, (1041, 1065, 1120S).

  4. The first whole unit-of-work, or first individual document (because an entire unit-of-work may not require OE from image) requiring OE opens. Refer to IRM 3.0.101.14.7.5 through 3.0.101.14.7.6 when entering data.

  5. If an incorrect option was selected, press the <CTRL>-<P> key combination and then F9 to suspend this unit of work. Notify your supervisor.

  6. If you are not on the last field after entering data, press the <F6> key to release a document and display the next template.

  7. Press the <CTRL>-<P> key combination (post-to-close) to end OE from Image.

  8. The system will return you to the Original Entry (OE) Selection Menu when you complete the last document in the current unit-of-work.

3.0.101.14.6.2  (01-01-2015)
OE From Image Processing

  1. The Status Line at the bottom of the screen displays the following information:

    1. The Program field shows one of the following: "44386" , "44387" , or "44388" for Schedule K-1 documents.

    2. The DLN field shows the DLN of the document being displayed.

    3. The Document field shows the relative count of the document. For example, if it is the first document in a unit-of-work that contains 90 documents, the Document field shows a count of "1 of 90" .

    4. The Num field shows either "Nu" or blank, indicates a numeric field, or if the shift key is pressed in an alpha/numeric field. See Figure 3.0.101-4.

    Figure 3.0.101-4
    This image is too large to be displayed in the current screen. Please click the link to view the image.
  2. In OE from image, you manually enter information into the template using a scanned image of the return as the source.

3.0.101.14.6.3  (01-01-2015)
OE From paper QUICK START

  1. From the Workstation Main Menu, select Original Entry (OE).

  2. From the Original Entry (OE) Selection Menu, select OE Paper Selection Menu.

  3. From the OE Paper Selection Menu, select one of the following:

    • 1041 K-1 OE Paper

    • 1065 K-1 OE Paper

    • 1120S K-1 OE Paper

      Note:

      The program printed in the middle of the BBTS Batch Transmittal will indicate which form you are inputting. (44386=1041 K-1, 44387=1065 K-1 or 44388=1120S K-1).

  4. If an incorrect option was selected press "ESC" , you will be returned to OE paper select menu.

3.0.101.14.6.4  (01-01-2015)
OE From Paper Processing

  1. In OE from Paper, the workstation operators will manually enter the information into the system and eliminate all transport processing.

  2. The reason a document is processed using OE Paper is because it cannot be scanned, (e.g. multiple pages, writing too light, substitute forms, half pages, etc.).

  3. These documents should be batched separately and the BBTS Transmittal clearly marked as "OE PAPER" .

  4. Once the Workstation Operator has successfully completed steps 1 through 3 above, they will get a window labeled "Schedule K-1 Block Input" . They will input the following information:

    • BBTS Batch ID = this is the four digit Batch Number located in the upper right corner of the BBTS Transmittal.

    • Tax Year = this is two digits (14) and will be taken from the first document in the block and will be either the year in the Tax Period Ending area of the document or the form year, if the tax period ending is missing.

    • DLN = this will be taken from the first document in the block and MUST contain 14 digits for example (84566102790000).

  5. The appropriate prompt for the first required field will be displayed for the first document in the block. You will input the information from the document and when finished you will press<F6> to get the next document.

  6. You will be asked for the sequence number (located in the 12th and 13th position of the DLN) for each additional document input (01, 02, 03, etc.). A sequence number cannot be skipped or repeated.

  7. Once all the documents have been input you will press the <ESC> and <F8> keys to end OE from paper or press <CRTL>-P (Post-to-Close) while entering, but before releasing the last document in the UW.

  8. Note: The system will return you to the Original Entry (OE) Selection Menu if you used <CRTL>-P (Post-to-Close) on the last document in the UW.

  9. The Status Line at the bottom of the monitor screen contains the following information:

    • The Program field shows 44386, 44387 or 44388 for Schedule K-1 documents.

    • The DLN field shows the DLN of the current document.

    • The Document field shows the relative count of the document. The field will show "1 of 1" if this is the first document in the block. As each subsequent paper document is processed this will increase to "2 of 2" , "3 of 3" , etc.

    • The Num Field either shows "NU" or is blank, depending on whether you have activated the embedded numeric keypad or not.

3.0.101.14.6.5  (01-01-2015)
Image and Paper Processing Releasing a Unit-of-Work in OE

  1. For OE Image, when you release the last document in a unit-of-work, the UW is released.

    1. If <CTRL>-<P> has been pressed before releasing the UW, the OE Selection Menu will open.

    2. If <CTRL>-<P> has not been pressed, another UW will open.

  2. For OE Paper, press the <ESC> then <F8> key to release (close) the UW.

    1. If you answer "NO" to the question window that opens, a template appears for additional Schedule K-1 entry.

    2. If you answer "YES" to the question window, and have not issued a post-to-close, a Schedule K-1 template appears to begin a new unit-of-work.

    3. If you answer "YES" to the question window, and have issued a post-to-close, the OE Selection Menu will open.

3.0.101.14.6.6  (01-01-2015)
Selecting a Specific Unit-of-Work in OE

  1. A specific Schedule K-1 unit-of-work may be selected for OE by following these steps:

    1. From the OE Selection Menu, enter the numeric code for OE Select Block function, The menus shown on the screen will vary depending on how your supervisor profiled you. For instance, if you are not profiled for the OE function, this option will not display on the menu.

    2. If an incorrect option is selected from the OE Selection menu, press the <CTRL>-<P> key combination and then F9 to suspend the unit of work.

    3. From the Enter Block/UW window, enter the first 11-digits of the DLN from the Schedule K-1.

    4. Press the <ACTION/Enter> key.

    5. The designated Schedule K-1 opens. Enter data using instructions found in IRM 3.0.101.14.9 as needed.

3.0.101.14.7  (01-01-2015)
Data Validation (DV) Function

  1. The DV function is used to manually correct data from scanned images and paper documents. The menus shown on the screen will vary depending on how your supervisor profiled you. For instance, if you are not profiled for the DV function, this option will be grayed on the menu Workstation Main Menu.

3.0.101.14.7.1  (01-01-2015)
DV From Image QUICK START

  1. From the Workstation Main Menu, select Data Validation (DV).

  2. From the Data Validation (DV) Selection Menu, select DV Selection Menu.

  3. From the Schedule DV Selection Menu, select Schedule K-1 form type.

  4. The first unit-of-work opens and the cursor stops at the first highlighted field. Make the necessary corrections following instructions found in IRM 3.0.101.14.8, General Correction Procedures.

  5. Press the <CTRL>-<P> (post-to-close) key combination to end the current unit-of-work upon completion of DV from Image.

  6. The system will return you to the Data Validation (DV) Selection Menu when you release the last document.

3.0.101.14.7.2  (01-01-2015)
DV From Paper QUICK START

  1. From the Workstation Main Menu, select Data Validation (DV).

  2. From the Data Validation (DV) Selection Menu, select DV Select Block.

  3. From the "Enter Block/Unit of Work" window, enter the first 11-digits of the DLN written on the Schedule K-1 in the unit-of-work.

  4. The selected unit-of-work opens and the cursor stops at the first highlighted field. Make the necessary corrections following instructions found in IRM 3.0.101.14.8, General Correction Procedures.

  5. The "Open Block/Unit of Work" window is displayed when you release the unit of work. If you want to continue Data Validation (DV) from paper go back to step 3. Otherwise press the <ESC> key to return to the DV Selection Menu.

3.0.101.14.7.3  (01-01-2015)
Selecting a Specific Unit-of-Work in DV

  1. To begin DV on a specific UW of Schedule K-1 documents, open that UW by doing the following:

    1. From the Workstation Main Menu, select the numeric code for Data Validation (DV). The Workstation Main Menu closes, and the Data Validation (DV) Selection menu opens.

    2. In the DV Selection Menu window, type the numeric code for Select Block. The DV Selection Menu window closes and an "Open Block/UW" window opens.

    3. Enter the first 11-digits of the DLN from the batch transmittal.

    4. Press the <ACTION/Enter> key. The Open Block/UW window closes and the selected UW opens.

    5. A suspended block in DV will require the operator to restore the "Auto ON" mode.

  2. The procedures for performing DV from Select Block on Schedule K-1 documents are identical to performing DV from Image of Schedule K-1 documents once the UW is opened.

3.0.101.14.8  (01-01-2015)
General Correction Procedures

  1. Use these procedures as a guide during the Original Entry (OE) and Data Validation (DV) functions. Not all the items will always apply to specific situations in either function. If the scanned information is correct, no action is necessary. If the scanner reads the information and it is incorrect, or if scanned information was put into the wrong field, remove from incorrect field and input the information in the correct field.

  2. If you reach the maximum field length while entering data, the cursor, in most cases, will automatically move to the next field. Therefore, incorrect characters can be inadvertently entered into the next field. Remove or correct these characters. Use standard abbreviations as shown in Exhibit 3.0.101-4 and Exhibit 3.0.101-5 to avoid this situation.

  3. Error Messages-Error messages with information are often helpful to correct the error and may be found in the Status Line. Most error messages are two lines with the first line being the error message and the second line containing information that may help resolve the error condition.

  4. When validating an address change, ensure the system read the correct ZIP Code. If addresses, city, and state changes were made and a correct ZIP Code is not present on the template, correct the information to match what is on the image.

  5. If a document is received and appears totally blank (No Payer/Payee Entity or tax data) Suspend unit of work.

  6. The <CTRL>-<F7> combination key function provides the operator the ability to access the last edited field or the last flagged field of the previous document.

  7. After DV is complete the system will run a verification of Parent DLN's. If the Parent DLN is missing from any of the documents within the unit of work the error message "Blank Parent DLN still exists after DV. Press <ACTION/Enter> to review possible parent matched" . Another window will appear stating "Possible Parent Match 1 of (however many) is this the same payer?" . If the operator selects "YES " , SCRIPS will populate the Payer information. If the operator selects "NO" , the system will continue to ask until it has gone through all payers in the unit of work.

    Note:

    The valid parent return File Location Codes (FLC) for Cincinnati are 17, 31 34, 60 or 78.

    Note:

    The valid parent return File Location Codes (FLC) for Ogden are 29, 60, 78, 81, 82, 83, 85, 87, and 88.

  8. For additional information on Function Keys refer to IRM 3.41.274, Exhibits 1 and 2.

3.0.101.14.8.1  (01-01-2015)
Poor Quality Image

  1. Occasionally the IMAGE of the return presented to the OE or DV Operator is unreadable. Some reasons for this are:

    • Writing on image is too light

    • Image is too dark to read writing

    • Image is illegible, or

    • Image is incomplete, etc.

  2. When working in OE or DV, if you cannot determine the data for any field (except the Name, Street Address, City, State, or ZIP Code) from the Image, suspend the Unit-of-Work (UW) as "Poor Quality Image " . (<F9>; press "S" ; select "Poor Quality Image" ). Note: Payer name line 1 must be suspended for "Poor Quality Image".

  3. The Lead Data transcriber/designated employee will review the Work Status Report for suspended "Poor Quality Image" and pull the document from the block and give to the employee that suspended the UW.

  4. The employee will resume the suspended block, correct the data using the paper document or release the document leaving the field blank, if unable to determine the data.

  5. The employee will then give the document back to the Lead Data Transcriber/designated employee.

  6. The Lead Data Transcriber/designated employee will refile the document in its original block.

3.0.101.14.8.2  (01-01-2015)
Schedule K-1 Name and Address Information

  1. Form 1041 Schedule K-1

    • Payee Information - Transcribe name(s) and address information from Part II Beneficiaries" name, address, and ZIP Code" .

    • Payer Information - Transcribe Payer name Line 1 from Part I, the box labeled "Estate or Trust Name" . Transcribe Payer Name Line 2 and address information from the box labeled "Fiduciary’s name, address, and ZIP Code." .

  2. Form 1065 Schedule K-1

    • Payee Information- Transcribe name(s) and address information from Part II. "Partner's name, address and ZIP Code" .

    • Payer Information - Transcribe Payer Name(s) from Part I, the box labeled "Information about the Partnership name, address and ZIP Code " .

  3. Form 1120S Schedule K-1

    • Payee Information - Transcribe name(s) and address information from Part II" Information about the Shareholder name, address and ZIP Code."

    • Payer Information - Transcribe name(s) and address information from Part I "Information about the Shareholder name, address and ZIP Code" .

  4. In certain situations the scanner may read a name, address or city without spaces. If the name and/or address can be determined leave as is.

3.0.101.14.8.3  (01-01-2015)
Edit Marks

  1. Edit Marks(-) and their descriptions are below:

    EDIT MARK DESCRIPTION
    "X"
    • The "X" is used to delete tax data or to indicate that an item is not to be transcribed.

    • For money amounts, enter the amount written to the left of the "X" , when applicable.

    "/" (Slash) or "X through the entire page."
    • A "/" (slash) or "X " through the entire page indicates the page is to be deleted.

    • If the form contains a "/" (slash) or "X" through the entire page, delete the page as "Unprocessable Attachment" .

3.0.101.14.9  (01-01-2015)
Name Entries

  1. Except as noted below, enter the information as shown with as many characters as permitted. Refer to Exhibit 3.0.101-4 for a list of standard abbreviations. If the scanned information is correct, no action is necessary.

  2. If a partner number or SSN number is shown, do not enter.

  3. If an account number is shown above or to the right of the 1st name line, enter it on the 1st name line. (See example below)

    Example: Entry
    Point
    Enter as:

    Account # 14542
    Mr & Mrs. John Q Willow
    % Donald Birch International
    123 Adams Avenue
    Little Rock, Ark. 72201
    1st Name Line: MR & MRS JOHN Q. WILLOW ACCT 14542
    2nd Name Line: % DONALD BIRCH INTERNATIONAL
    Street Address: 123 ADAMS AVE
    City: LITTLE ROCK
    State: AR
    Zip: 72201
  4. If a city or state is shown as part of the first name line, enter the complete name of the city or state, no abbreviations.

    Example Enter as:
    First Bank of GA FIRST BANK OF GEORGIA
  5. Enter a space before and after an ampersand (&). In the payer name line enter "and" or "&" as shown.

    Example: Enter as:
    (1) Jim Lime and Joe Doe, Ptrs JIM LIME AND JOE DOE PTRS
    (2) J. Elm & R. Ash, Inc J ELM & R ASH INC
  6. Omit punctuation, except for hyphens. Do not enter a space before or after hyphens.

    Example: Enter as:
    (1) O'Tulare: OTULARE
    (2) Maple-Pecan MAPLE-PECAN
  7. Remove all periods. Do not leave a space unless the period is removed from an initial or an internet name such as "Flower.com," which should be entered as "Flower (space) com" .

  8. If there are initials in the name line and the scanner reads the initials correctly, however it does not leave the spaces, leave the name the way it was picked up by the scanner. If you need to make any corrections or re-input the name line, use the spaces between the initials.

  9. Abbreviate name information only when it is abbreviated on the document, except for standard abbreviations: CO for company, CORP for corporation and INC for incorporated. (See Exhibit 3.0.101-4 and Exhibit 3.0.101-5 for a list of valid abbreviations).

    • For the "¢" symbol enter "CENT "

    • For the "+" symbol enter "PLUS"

    • For the "@" symbol enter "AT"

    • For the "$" symbol enter "DOLLAR"

    • For ".com" enter a space instead of the "."

    • If initials are DBA, CPA, LLC, MD, PC, etc. you do not need spaces or periods. The initials must be run together. If the scanner leaves spaces, you can leave as is unless another correction is necessary.

  10. Omit a slash (/), if shown between two names (e.g. John Pine/Mary Birch). Leave a space.

    Exception:

    On date replace the slash (/) with a hyphen (-).

  11. If an "In-Care-Of Name" is present, enter "%" , space, and the name. If information is already present on Name Line 2, include as much as possible after the In-Care-OfName information is input.

    Note:

    If two or more in care of name lines are present. enter the first in care of name.

  12. Enter Name Line 2 as shown. If a foreign address is present in entity information, use the second name line for foreign information only.

  13. If additional names are present, ignore the information.

  14. If the name appears with the last name first, and the first name last, enter the first name first and the last name last.

  15. If the name begins with the word "the" and has more than one word following "the" do not enter "the."

  16. If payee name is missing or illegible, enter a "Z" in the Payee name line field.

  17. If the name line of the payer is illegible, suspend for "Poor Quality Image." .

  18. If payer name is missing, leave blank.

  19. If payer or payee Name Line 2 is illegible or not present leave blank.

3.0.101.14.9.1  (01-01-2015)
Address Elements

  1. If the scanned information is correct, no action is necessary.

    Note:

    NABR (Name and Address Block Reader) will change the address to agree with the Postal Data Base in an attempt to correct spelling and/or recognition errors. When a match is found they update the record and flag it for the operator to verify. When it can be determined the scanned information presented for verification is from NABR, changes are not necessary. See examples below:

    NABR (Name and Address Block Reader)
    Return Postal Data Base Update Comments
    2121 SE FOOTHILL
    SANTA ANA, CA 92708
    2121 FOOTHILL BLVD
    SANTA ANA, CA 92708
    Removed SE and put BLVD
    112 BID A WEE CT
    PANAMA CITY BCH, FL 32413
    112 BID A WEE CT
    PC BEACH, FL 32413
    Abbreviated city and spelled out Beach
    14658 ARNDT RD NE
    AURORA, OR 97002
    14658 NE ARNDT RD
    AURORA OR 97002
    Moved NE from the end of the line to after the numbers
    1705 SW HERON CIRCLE
    BEAVERTON, OR 97007
    1075 SW HERON CIR
    BEAVERTON OR 97007
    Abbreviated Circle
  2. Do not enter periods in the address field.

  3. Enter abbreviations for street abbreviations as shown in Exhibit 3.0.101-5.

  4. If an Ampersand (&) is present in the address field, spell out as "and" .

  5. If two street addresses are present with the same city, state and zip, enter the first street address.

  6. If two addresses are present with different city, state and zip, enter the first address.

  7. If a document has a PO BOX or Post Office Box, or PO Drawer, enter the Post Office box or an asterisk (*) followed by a space.

    Example: Enter As:
    PO Box #24 *(space) 24
  8. If a document has a street address and a PO Box, enter both on the street address line with the PO Box or (*) entered first. If the combination is too long, the PO Box takes precedence. Enter as much of the street address as possible using abbreviations as necessary to limit this entry to 35 positions. (See Exhibit 3.0.101-5 for standard abbreviations).

  9. If the street address is missing or illegible, enter "Z" in the address field.

  10. If the "In care of" is in front of a name on the address line move to Name Line 2.

  11. If the city is missing or illegible, enter "ZZZ" in the city field.

  12. If city is present it must be alpha. For example, enter 29 Palms as TWENTY NINE PALMS.

  13. Enter standard abbreviations for states and territories as shown in Exhibit 3.0.101-6.

  14. If there is no state but a ZIP Code is present, press the <ACTION/Enter> key in the ZIP Code field. This will generate the state code for this ZIP Code in the Status Line. Follow the screen prompts to accept this code or to enter a different code.

  15. If there is no ZIP Code but a state is present, press the <ACTION/Enter> key in the ZIP Code field. The system will generate the default ZIP Code for that state.

  16. If the state does not match the ZIP Code presented, delete the ZIP Code and generate the default ZIP Code for this state.

  17. If both the state and ZIP Code are blank, leave both blank.

  18. APO, DPO or FPO addresses must be transcribed with the appropriate two-character state code followed by the corresponding unique five-digit ZIP Code.

    1. When APO, DPO, or FPO is used, do not any other data in the city field

    2. If the state code is missing, refer to the existing ZIP Code for the valid state code. See Exhibit 3.0.101-6.

    3. If the ZIP Code is missing, refer to the existing state code for the valid ZIP Code. See Exhibit 3.0.101-6.

    4. When APO, DPO or FPO is to be transcribed in the city field, the state code field must correspond with the following:

      ADDRESS ABBREVIATION LOCATION ZIP CODE
      APO AA Americas 340
      DPO AA Americas 340
      FPO AA Americas 340
      APO AE Europe 090-098
      DPO AE Europe 090-098
      FPO AE Europe 090-098
      APO AP Pacific 962-966
      DPO AP Pacific 962-966
      FPO AP Pacific 962-966
    5. Enter all APO/DPO/FPO addresses as follows:

      Example Enter As
      APO New York, N.Y. 091XX APO AE 091XX
      FPO San Francisco, CA 962XX FPO AP 962XX
    6. If the ZIP Code is out of range on APO, DPO, or FPO. press <ACTION/ENTER> and the system will generate the default.

3.0.101.14.9.1.1  (01-01-2015)
Foreign Address

  1. Operators are responsible to perfect all entity information on all foreign Schedule K-1s.

  2. Foreign Addresses on Schedule K-1 documents are entered as follows:

    1. Enter the foreign street address in the Second Name Line. Omit "any existing Name Line 2" information.

    2. Enter the foreign city, state, province or territory, and mailing code, if present, in the street address field. Spell out the city, state, province or territory, if abbreviated (See Exhibit 3.0.101-10 through Exhibit 3.0.101-14. Separate the postal code from the foreign city or province with a space. Example: London 02.

      Note:

      Accept what the taxpayer has put on the line unless the line is too long, then, use the province or territory abbreviation. This will allow the postal code to fit on the line.

    3. Enter the foreign country in the "City" field. Spell out the country if abbreviated by the taxpayer. If the Country is missing or illegible, use Exhibit 3.0.101-10 through Exhibit 3.0.101-14 to determine the country. If you are unable to determine the country, enter "ZZZ" .

      Example:

      CA is Canada. See Exhibit 3.0.101-10 through Exhibit 3.0.101-14 for complete list of foreign country codes.

      Note:

      If the foreign country exceeds 22 characters, input only the first 22 characters.

    4. Enter a period (.) in the first position of the "State" field to identify the address as foreign.

    5. Leave the ZIP Code blank.

3.0.101.14.10  (01-01-2015)
Money Amount Fields

  1. Amounts are transcribed in dollars only.

  2. If a negative money amount appears in a positive only field, press <F3>, to clear the field and press <ACTION/Enter>. Negative amounts can be identified by a minus sign or being enclosed in parentheses or brackets.

  3. If the taxpayer enters a positive or negative $.49 or less, <F3>, <ACTION/Enter>. If the taxpayer enters a positive or negative $.50 to $.99, enter $1 or -$1 respectively.

  4. If the taxpayer files a state Schedule K-1, and it has a column with the federal information, transcribe the information from the federal line.

  5. Enter negative amounts, where allowed, by leading the amount with a hyphen. Note: Negative money amounts require a double <ACTION/ENTER>

  6. The following lines will be presented for verification:

    • 1065 Schedule K-1 = Lines 5, 6a and 7

    • 1041 Schedule K-1 = Lines 1 and 2a

    • 1120S Schedule K-1 = Lines 4, 5a and 6

    • Status line will display (is the money amount correct?)

  7. If two dollar amounts are present on the same line, manually add together and enter total amount.

3.0.101.14.11  (01-01-2015)
Percentage Field instructions

  1. Schedule K-1

    • Fields will be input/validated as a seven position field and should be in the following format "XXX.XXX."

    • Fields shall be positive only.

    • Fields should arebetween 000-100.

    • Fields can be blank.

    • If there are more than 3 numerics to the right or to the left of the decimal point (see examples 6 or 7 below).

    • If decimal point is not recognized, (see examples 1 or 3 below).

    • If negative percentage is in field, press <F3> to clear the field and then press <ACTION/Enter>.blank

    • If the percentage has a fraction, ignore the fraction and enter the number only. Note: (see example 8 & 9 below).

    Percentage Field Entry Chart
    No Recognized as Invalid = send for verification/correction
    Valid = not sent to Operator
    Operator to enter/verify
    1 10 Invalid, no decimal 10.
    2 95.1 valid  
    3 100 Invalid, no decimal 100.
    4 101.123 Invalid > 100 100.
    5 15.123 Valid  
    6 15.0876 Invalid, too many #,s to right of decimal Any more than 3 digits after the decimal, drop the digits after the first 3 #,s
    7 1201 Invalid>100.00 and to many #;s to the left of the decimal If more than 100 put in 100
    8 33 1/2 Ignore the fraction Enter as 33.
    9 14 7/8 Ignore the fraction Enter as 14.

    For operator validation purposes, require operator to enter decimal point so the system can zero fill percentage correctly.

3.0.101.14.12  (01-01-2015)
Deleting a Block

  1. Always delete a block if the tax year cannot be determined.

3.0.101.14.13  (01-01-2015)
Prior Year Revision Processing

  1. If a prior year Schedule K-1 is processed by the scanner. SCRIPS operators will:

    1. Assume Schedule K-1 is current year.

    2. Convert transcription lines using Exhibit 3.0.101-8.

    3. Continue processing.

3.0.101.14.14  (01-01-2015)
Payer General Instructions

  1. If the payer EIN is the same as the previous document, the system will copy the Payer information into the document and then the next Schedule K-1 will be presented.

  2. If the Payer EIN is different, a Parent Entity will appear and the operator is to enter Payer Entity.

3.0.101.14.15  (01-01-2015)
SCRIPS Transcription Sheets

  1. The following tables represent specific SCRIPS entry procedures.

3.0.101.14.15.1  (01-01-2015)
Payee Information - Schedule K-1, Form 1041

  1. Enter from Part II on Schedule K-1, Form 1041.

    OE/DV Screen Prompts Description Instructions
    [F] Beneficiary ID Beneficiary ID from Part II box F. If missing or illegible leave blank and press <ACTION/Enter>. 1. Input or correct the 9 digit TIN. Note: must hold the Numeric key to enter alpha".
    2. If two or more TINs are shown, the TIN is missing, or the TIN contains more or less than 9 digits, clear the field (<F3>) then press <ACTION/Enter>.
    3. I If illegible, suspend for poor quality image per 3.0.101.14.8.1
    [G] Name 1 (Beneficiary) Name from box G. 1. Enter or correct Beneficiary Name Line 1 from box G.
    2. If missing, or illegible, enter "Z" and press <ACTION/Enter>per 3.0.101.14.9 (16).
    .
    [G] Name 2 (Beneficiary) Name from box G 1. If an "in-care-of" name is present, enter "%", space and then the name.
    2. If information is present on Name Line 2, include as much as possible after the % information, if it is present.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.
    [G] Address (Beneficiary) Address from box G. 1. Enter the street address.
    2. If the street address is missing or illegible, enter "Z" then press <ACTION/Enter>.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.
    [G] City (Beneficiary) City from box G. 1. Enter the City.
    2. If the city is missing or illegible, enter "ZZZ".
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1
    [G] State (Beneficiary) State from box G. 1. Enter the state abbreviation.
    2. If a Major City Code is entered, the state field is bypassed.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1
    [G] ZIP CODE(Beneficiary) ZIP Code from box G. 1. Enter the ZIP Code.
    2. If missing, press <ACTION/Enter> to generate the generic ZIP Code.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1
    K-1 Amended Amended K-1 box located above Part III 1. Enter an "X" if the box is marked.
    2. If box has been mis-read, clear the box (<F3>) and press <ACTION/Enter>.

3.0.101.14.15.2  (01-01-2015)
Payee Information - Schedule K-1, Form 1065

  1. Enter from Part II on Schedule K-1, Form 1065.

    OE/DV Screen Prompts Description Instructions
    [E] Partner TIN TIN from Part II box E. 1. Input or correct the 9 digit TIN. Note: must hold the Numeric key to enter alpha".
    2. If two or more TINs are shown, the TIN is missing, or the TIN contains more or less than 9 digits, clear the field (<F3>) then press <ACTION/Enter>.
    3. If illegible, suspend UW for poor quality image per 3.0.101.14.8.1.
    [F] Name 1 (Partner) Name from box F. 1. Enter or correct Beneficiary Name Line 1 from box F.
    2.. If missing, or illegible, enter "Z" and press <ACTION/Enter>per 3.0.101.14.9 (16)
    .
    [F] Name 2 (Partner) Name from box F 1. If an "in-care-of" name is present, enter "%", space and then the name.
    2. If information is present on Name Line 2, include as much as possible after the % information, if it is present.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [F] Address (Partner) Address from box F. 1. Enter the street address.
    2. If the street address is missing or illegible, enter "Z" then press <ACTION/Enter>.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [F] City (Partner) City from box F. 1. Enter the City.
    2. If the city is missing or illegible, enter "ZZZ" then press <ACTION/Enter>.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [F] State (Partner) State from box F. 1. Enter the state abbreviation.
    2. If a Major City Code is entered, the state field is bypassed.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [F] Zip code (Partner) ZIP Code from box F. 1. Enter the ZIP Code.
    2. If missing, press <ACTION/Enter> to generate the generic ZIP Code,
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1
    K-1 Amended Amended K-1 box located above Part III 1. Enter an "X" if the box is marked.
    2. If box has been mis-read, clear the box (<F3>) and press <ACTION/Enter>.

3.0.101.14.15.3  (01-01-2015)
Payee Information - Schedule K-1, Form 1120S

  1. Enter from Part II on Schedule K-1, Form 1120S

    OE/DV Screen Prompts Description Instructions
    [D] Shareholder TIN TIN from Part II box D. 1. Input or correct the 9 digit TIN. Note: must hold the Numeric key to enter alpha".
    2. If two or more TINs are shown, the TIN is missing, or the TIN contains more or less than 9 digits, clear the field (<F3>) then press <ACTION/Enter>.
    3.If illegible, suspend UW for poor quality image per 3.0.101.14.8.1.
    [E] Name 1 (Shareholder) Name from box E. 1. Enter or correct Beneficiary Name Line 1 from box E.
    2. if missing or illegible, enter a "Z" and press <ACTION/ENTER> per 3.0.101.14.9 (16).
    [E] Name 2 (Shareholder) Name from box E. 1. If an "in-care-of" name is present, enter "%", space and then the name.
    2. If information is present on Name Line 2, include as much as possible after the % information, if it is present.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [E] Address (Shareholder) Address from box E. 1. Enter the street address.
    2. If the street address is missing or illegible, enter "Z" then press <ACTION/Enter>
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [E] City (Shareholder) City from box E. 1. Enter the City.
    2. If the city is missing or illegible, enter "ZZZ" then press <ACTION/Enter>.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [E] State (Shareholder) State from box E. 1. Enter the state abbreviation.
    2. If a Major City Code is entered, the state field is bypassed.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [F] ZIP CODE(Shareholder) ZIP Code from box E. 1. Enter the zip code.
    2. If missing, press <ACTION/Enter> to generate the generic ZIP Code.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    K-1 Amended Amended K-1 box located above Part III 1. Enter an "X" if the box is marked.
    2. If box has been mis-read, clear the box (<F3>) and press <ACTION/Enter>.

3.0.101.14.15.4  (01-01-2015)
Money Amounts - Form 1041 Schedule K-1 (Program 44386)

  1. Form 1041 Schedule K-1 Transcription Sheet:

    OE/DV Screen Prompt Description Instructions
    [1] Interest Income Line 1 (+/-) Enter the amount from Line 1.
    [2a] Ordinary Dividends Line 2a (+/-) Enter the amount from Line 2a.
    [3] Net Short-Term Capital Gain Line 3 Enter the amount from Line 3.
    [4a]) Net Long-Term Capital/Total For Year Line 4a Enter the amount from Line 4a.
    [5] Other Portfolio Income Line 5 (+/-) Enter the amount from Line 5.
    [6] Ordinary Business Income Line 6 (+/-) Enter the amount from Line 6.
    [7] Net Rental Real Estate income Line 7 (+/-) Enter the amount from Line 7
    [8] Other Rental Income Line 8 Enter the amount from Line 8.
    [14] Alpha Designator Line 14 (located to the left of Line 14 money amount) Alpha Designator is a two position field consisting of A-Z, Asterisk (*), or blank(s).
    [14] Other Information Line 14 Enter the amount from Line 14 (first line only).

3.0.101.14.15.5  (01-01-2015)
Money Amounts - Form 1065 Schedule K-1 (Program 44387)

  1. Form 1065 Schedule K-1 Transcription Sheet:

    OE/DV Screen Prompt Description Instructions
    If this partner is a retirement plan Line I2 CKBOX If the box is checked, enter an X, otherwise leave blank.
    Beginning Capital Gain J Capital beginning (+) Enter % from Capital beginning line J
    Ending Capital Gain J Capital ending (+) Enter % from Capital ending line J
    [1] Ordinary Business Income(Loss) Line 1 (+/-) Enter the amount from Line 1.
    [2] Net Rental Real Estate Income (Loss) Line 2(+/-) Enter the amount from Line 2.
    [3] Other Net Rental Income (Loss) Line 3 (+/-) Enter the amount from Line 3.
    [4] Guaranteed Payments Line 4(+) Enter the amount from Line 4.
    [5] Interest Income Line 5 (+/-) Enter the amount from Line 5.
    [6a] Ordinary Dividends Line 6a (+/-) Enter the amount from Line 6a.
    [7] Royalties Line 7 (+/-) Enter the amount from Line 7.
    [8] Net Short-Term Capital Gain(Loss) Line 8(+/-) Enter the amount from Line 8.
    [9a] Net Long term Capital Gain (Loss) Line 9a (+/-) Enter the amount from Line 9a.
    [12] Section 179 Deduction Line 12 (+) Enter the amount from Line 12.

3.0.101.14.15.6  (01-01-2015)
Money Amounts - Form 1120S Schedule K-1 (Program 44388)

  1. Form 1120S Schedule K-1 Transcription Sheet:

    OE/DV Screen Prompt Description Instructions
    F Stock Ownership F Shareholder % of Stock Ownership (+) Enter % from line F
    [1] Ordinary Business Income(Loss) Line 1(+/-) Enter the amount from Line 1.
    [2] Net Rental Real Estate Income (Loss) Line 2 (+/-) Enter the amount from Line 2.
    [3] Other Net Rental Income (Loss) Line 3 (+/-) Enter the amount from Line 3.
    [4] Interest Income Line 4 (+/-) Enter the amount from Line 4.
    [5a] Ordinary Dividends Line 5a (+/-) Enter the amount from Line 5a.
    [6] Royalties Line 6 (+/-) Enter the amount from Line 6.
    [7] Net Short-Term Capital Gain(Loss) Line 7 (+/-) Enter the amount from Line 7.
    [8a] Net Long-term Capital Gain(Loss) Line 8a (+/-) Enter the amount from Line 8a.
    [11] Section 179 Deduction Line 11 Enter the amount from Line 11.
    [13] Alpha Designator Line Alpha Designator Code Alpha Designator is a two position field consisting of A-Z, Asterisk (*), or blank(s)
    [13] Credits Line 13 Enter the amount from Line 13 (first line only).

3.0.101.14.15.7  (01-01-2015)
Payer Information - ALL DOCUMENTS

  1. Enter information from Part I on all Schedules K-1.

3.0.101.14.15.7.1  (01-01-2015)
Payer Information - Schedule K-1, Form 1041

  1. Estate/Trust EIN from Part I Box A.

    OE/DV Screen Prompts Description Instructions
    [A] Estate/Trust ID Parent Return ID. 1. Correct or verify the 9 digit TIN.
    2. If two or more TINs are shown, the TIN is missing, or the TIN contains more or less than 9 digits, clear the field (<F3>) then press <ACTION/Enter>.
    Parent DLN The 14-digit Document Locator Number (DLN) will be stamped in the upper left margin. 1. Correct or verify the 14-digit DLN if missing or invalid. If unable to correct, clear the field (<F3>), if necessary and press <ACTION/Enter> twice.
    2. If missing or illegible, enter a "Z" and press <ACTION/ENTER> per IRM 3.0.101.14.8.1
    3. If File Location Code (FLC) is 78 or 60 (CSPC only) clear the field and press <ACTION/Enter> twice.
    [B] Name 1 (Estate/Trust) Name from box B. 1. Enter or correct Payer Name Line 1 from box B.
    2. If missing, leave blank and press <ACTION/Enter>.
    3. If illegible, suspend UW for poor quality image. Note: Refer to IRM reference 3.0.101.14.8.1(2) for poor quality image. After pulling document to read from paper, if still unable to determine information leave blank.
    [C] Name 2 (Fiduciary) Name from box C 1. If an "in-care-of" name is present, enter "%", space and then the name.
    2. If information is present on Name Line
    2, include as much as possible after the % information, if it is present.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [C] Address (Fiduciary) Address box C. 1. Enter the street address.
    2. If the street address is missing or illegible, enter "Z".
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [C] City (Fiduciary) City from box C. 1. Enter the City.
    2. If the city is missing or illegible, enter "ZZZ".
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [C] State (Fiduciary) State from box C. 1. Enter the state abbreviation.
    2. If a Major City Code is entered, the state field is bypassed.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [C] ZIP Code(Fiduciary) ZIP Code from box C. 1. Enter the ZIP Code.
    2. If missing, press <ACTION/Enter> to generate the generic ZIP Code.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.

3.0.101.14.15.7.2  (01-01-2015)
Payer Information - Schedule K-1, Form 1065

  1. Partnership EIN from Part I Box A.

    OE/DV Screen Prompts Description Instructions
    [A] Partnership EIN Parent Return ID. 1. Correct or verify the 9 digit TIN.
    2. If two or more TINs are shown, the TIN is missing, or the TIN contains more or less than 9 digits, clear the field (<F3>) then press <ACTION/Enter>.
    .
    Parent DLN The 14-digit Document Locator Number (DLN) will be stamped in the upper left margin. 1. Correct or verify the 14-digit DLN if missing or invalid. If unable to correct, clear the field (<F3>), if necessary and press <ACTION/Enter> twice.
    2. If illegible, suspend UW for poor quality image per IRM 3.0.101.14.8.1
    3. If File Location Code (FLC) is 78 or 60 (CSPC only) clear the field and press <ACTION/Enter> twice.
    [B] Name 1 (Partnership) Name from box B. 1. Enter or correct Payer Name Line 1 from box B.
    2. If missing, leave blank and press <ACTION/Enter>.
    3. If illegible, suspend UW for poor quality image.Note: Refer to IRM reference 3.0.101.14.8.1(2) for poor quality image. After pulling document to read from paper, if still unable to determine information leave blank.
    [B] Name 2 (Partnership) Name from box B. 1. If an "in-care-of" name is present, enter "%", space and then the name.
    2. If information is present on Name Line 2, include as much as possible after the % information, if it is present.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [B] Address (Partnership) Address from box B. 1. Enter the street address.
    2. If the street address is missing or illegible, enter "Z".
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [B] City (Partnership) City from box B. 1. Enter the City.
    2. If the city is missing or illegible, enter "ZZZ".
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [B] State (Partnership) State from box B. 1. Enter the state abbreviation. 2. If a Major City Code is entered, the state field is bypassed.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [B] Zip Code(Partnership) ZIP Code from box B. 1. Enter the ZIP Code.
    2. If missing, press <ACTION/Enter> to generate the generic ZIP Code,
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.

3.0.101.14.15.7.3  (01-01-2015)
Payer Information - Schedule K-1, Form 1120S

  1. Corporation EIN from Part I Box A.

    OE/DV Screen Prompts Description Instructions
    [A] Corporation EIN Parent Return EIN 1. Correct or verify the 9 digit TIN.
    2. If two or more TINs are shown, the TIN is missing, or the TIN contains more or less than 9 digits, clear the field (<F3>) then press <ACTION/Enter>.
    Parent DLN The 14-digit Document Locator Number (DLN) will be stamped in the upper left margin. 1. Correct or verify the 14-digit DLN if missing or invalid. If unable to correct, clear the field (<F3>), if necessary and press <ACTION/Enter> twice.
    2. If illegible, suspend UW for poor quality image, if still unable to read from paper copy, leave blank per IRM 3.0.101.14.8.1.
    3. If File Location Code (FLC) is 78 or 60 (CSPC only) clear the field and press <ACTION/Enter> twice.
    [B] Name 1 (Corporation) Name from box B. 1. Enter or correct Payer Name Line 1 from box B.
    2. If missing, leave blank and press <ACTION/Enter>.
    3. If illegible, suspend for poor quality image. Note: Refer to IRM reference 3.0.101.14.8.1(2) for poor quality image. After pulling document to read from paper, if still unable to determine information leave blank.
    [B] Name 2 (Corporation) Name from box B. 1. If an "in-care-of" name is present, enter "%", space and then the name.
    2. If information is present on Name Line 2, include as much as possible after the % information, if it is present.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [B] Address (Corporation) Address from box B. 1. Enter the street address.
    2. If the street address is missing or illegible, enter "Z".
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [B] City (Corporation)) City from box B. 1. Enter the City.
    2. If the city is missing or illegible, enter "ZZZ".
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1.
    [B] State (Corporation) State from box B. 1. Enter the state abbreviation. 2. If a Major City Code is entered, the state field is bypassed.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1
    [B] zip code (Corporation) ZIP Code from box B. 1. Enter the ZIP Code.
    2. If missing, press <ACTION/Enter> to generate the generic ZIP Code.
    3. If a foreign address is present, see IRM 3.0.101.14.9.1.1

3.0.101.15  (01-01-2015)
ERS

  1. This section contains instructions for resolving Schedule K-1 error conditions. All forms go to Error Resolution Systems under program code 44380.

3.0.101.16  (01-01-2015)
Reserved

  1. subsection is reserved

3.0.101.17  (01-01-2015)
Types of Errors

  1. This section provides a description of the types of errors generated during Schedule K-1 processing.

  2. The Error Resolution System (ERS) will identify errors according to type and priority. This will show in the record heading.

    • Action Code Error (Priority I) - Not valid on Schedules K-1

    • Section Error (Priority II) - Includes terminus error and ISRP Problem code.

    • Validity Error (Priority III)

    • Math/Consistency Error (Error Codes) (Priority IV)

  3. There may be records where the tax examiner finds that programming has not furnished a section or a field that is needed to resolve an error. In this event, the tax examiner can use Command Code (CC) GTSEC. This should be reported to Headquarters for correction of the display,

3.0.101.17.1  (01-01-2015)
Priority II Errors - Section Errors

  1. The following conditions may be present if normal SCRIPS/ISRP validity checks have been bypassed:

    • Terminus Errors

    • Edit Errors

    • Missing required sections.

  2. Terminus Error - This error is caused by a section with variable length input fields containing an erroneous size field.

    1. When displayed, this type of error will show all input fields of the terminus section. Transcribed data will be present. Computer generated fields will not be present.

    2. All fields present for the section must be examined and the necessary correction(s) made to all the fields.

  3. Correction Procedures:

    1. CC CRECT will be displayed. If the section needs to be deleted, use CC DLSEC to delete the section.

    2. If no corrections are needed, transmit from the bottom of the screen.

3.0.101.17.2  (01-01-2015)
Priority III - Field Errors

  1. Definition - Any field that does not meet the requirement(s) for that field will be shown as a Priority III error. Consistency and or relationships with other fields will not be a factor.

  2. Some reasons for this type of error are:

    • Non-numeric character in a numeric field.

    • Non-alphabetical character in a alpha field.

    • Blank space in a numeric field

    • Blank in the first position of an alpha field if followed by significant data.

  3. Display - Every field displayed is in error.

    1. All fields with a Priority III error will be displayed in columnar format in the order encountered in the record.

    2. An overflow field is identified by all question marks for a money field.

  4. Correction Procedures:

    1. Correct every error field displayed using the specific instructions within each section for the field in error.

    2. Check the information on the source document to determine if each displayed field has been correctly edited and transcribed.

    3. Enter the correct data for each field displayed.

    4. If no data is to be in a displayed field, blank the field.

    5. Transmit.

3.0.101.17.3  (01-01-2015)
Part IV Errors - Consistency/Math Errors

  1. Definition - Any valid field used in any computation in which the result is inconsistent with (or contrary to) any other valid field will have Error Code 001–999 assigned and will be shown as a Priority IV Error.

  2. Display - These errors will be displayed with the Error Code assigned to them for the specific error in ascending numerical order. The screen display will show the error code assigned and the fields needed to make the necessary correction.

    1. The blank field "CL" will be displayed for the entry of a Clear Code on records where the possibility exists that a change or correction may not be needed.

    2. All errors must be resolved by either eliminating the error or entering a Clear Code.

  3. Correction Procedures:

    1. Correct all coding and transcription errors.

    2. If the data in the field is correct, enter a "C" in the Clear Code field.

3.0.101.18  (01-01-2015)
Section 01 Errors

  1. This section provides instructions for correcting Section 01 error conditions.


More Internal Revenue Manual