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Part 3. Submission Processing

Chapter 0. General

Section 101. Schedule K-1 Processing (Cont. 1)

3.0.101  Schedule K-1 Processing (Cont. 1)

3.0.101.14 
Schedule K-1 Processing Through SCRIPS

3.0.101.14.6 
Forms Identification (FI) Function

3.0.101.14.6.1  (01-01-2009)
FI QUICK START

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

  2. From the Original Entry (OE) Image Selection Menu, select Forms from the Identification Selection Menu. 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.

  3. From the Forms Identification Section Menu, Select 1041 K-1, 1065 or 1120S Form Identification. 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.

3.0.101.14.6.2  (01-01-2009)
FI Processing

  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):

    1 - Current Year 1041 K-1 (661108)
    2 - Prior Year 1041 K-1 (611107)
    3 - Breaker Sheet (F1332)
    X - Remove

    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.

3.0.101.14.7  (01-01-2009)
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.

3.0.101.14.7.1  (01-01-2009)
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.

  3. From the OE Image Selection Menu, select K-1 form type.

  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 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.

3.0.101.14.7.2  (01-01-2009)
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, depending on whether you activate the embedded numeric keypad or not, respectively. See Figure 3.0.101–5

    Figure 3.0.101-5
    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.

3.0.101.14.7.3  (01-01-2009)
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

    • 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, 44388=1120S K-1).

  4. If an incorrect option was selected from OE, post-to-close (<Ctrl -P>), suspend the UW and notify your supervisor.

3.0.101.14.7.4  (01-01-2009)
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 ( Multiple pages, writing too light, substitute forms, half pages, etc.).

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

  4. 4. Once the Workstation Operator has successfully completed steps 1 through 3 in 3.0.101.14.7.3 above, they will get a window labeled "Schedule K-1 Block Input" . They will input the following information

    • Tax Year = this is four digits (2009) 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.

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

    • DLN = this will be taken from the first document in the block and MUST contain 14 digits (84566102790009).

  5. The appropriate template 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 template.

  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 <F8>and <ESC>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. The system will return you to the Original Entry (OE) Selection Menu when you release the last document in the UW.

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

    • The Program field shows 44386, 44387,44388 or 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 the 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.

3.0.101.14.7.5  (01-01-2009)
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 <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.

3.0.101.14.7.6  (01-01-2009)
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. 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 suspend the unit of work.

    3. From the Open 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 3.0.101.14.8.1 as needed.

3.0.101.14.8  (01-01-2009)
Data Validation (DV) Function

  1. The DV function is used to manually correct data from both 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.

3.0.101.14.8.1  (01-01-2009)
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 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 3.0.101.14.9 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.

3.0.101.14.8.2  (01-01-2009)
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 "Open 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 3.0.101.14.9 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.

3.0.101.14.8.3  (01-01-2009)
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.

3.0.101.14.9  (01-01-2009)
General Correction Procedures

  1. Use these procedures as a guide during the Original Entry (OE) and Data Validation (DV) functions. If the scanned information is correct, no action is necessary. Not all the items will always apply to specific situations in either function. During DV, if the scanner reads the information and it is in the wrong fields, the operator will need to move the information to the correct fields. See Figure 3.0.101–6 for an example of a record that will need fields corrected that are not highlighted.

    Figure 3.0.101-6
    This image is too large to be displayed in the current screen. Please click the link to view the image.

  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 Exhibits 3.0.101-4 and 3.0.101-5 to help 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 a NABR 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 and 34.

    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.

3.0.101.14.9.1  (01-01-2009)
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" ).

  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 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.

3.0.101.14.9.2  (01-01-2009)
Schedule K-1 Name and Address Information

  1. Form 1041 Schedule K-1

    • Payee Information — Transcribe name(s) and address information from the box labeled "Beneficiary’s name, address, and ZIP code" .

    • Payer Information — Transcribe Payer name Line 1 from the box labeled "Name of trust or decedent’s estate" . 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.

    • Payer Information — Transcribe name(s) and address information from Part I.

  3. Form 1120S Schedule K-1

    • Payee Information — Transcribe name(s) and address information from Part II.

    • Payer Information — Transcribe name(s) and address information from Part I.

  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.

3.0.101.14.10  (01-01-2009)
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 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)

    Account # 14542
    Mr. & Mrs. John Q. Willow
    % Donald Birch International
    123 Adams Avenue
    Little Rock, Ark. 72201

  4. Enter as:

    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

  5. 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 First Bank of GA
    Enter as: FIRST BANK OF GEORGIA

  6. Enter a space before and after an ampersand (&). In the payer name line enter "and" or "&" as shown.

    (1) Example: Jim Lime and Joe Doe, Ptrs Enter as: JIM LIME AND JOE DOE PTRS
    (2) Example: J. Elm & R. Ash, Inc Enter as: J ELM & R ASH INC

  7. Omit punctuation, except for hyphens. Do not enter a space before or after hyphens.

    (1) Example: O'Tulare: Enter as: OTULARE
    (2) Example: Maple-Pecan Enter as: MAPLE-PECAN

  8. 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" .

  9. 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.

  10. 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 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

  11. Omit a slash (/), if shown in the name line between two names (e.g. John Pine/Mary Birch). Leave a space.

    Exception:

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

  12. 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-Of information is input.

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

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

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

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

  17. If name line of the Payee is blank or illegible, enter a "Z" in the Payee name line field.If the name line of the payer is illegible, suspend for "Poor Quality Image." . If payee name is missing, leave blank.

3.0.101.14.10.1  (01-01-2009)
Address Elements

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

  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, 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 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. Major City Codes listed in Exhibit 3.0.101-6 may be used. If a Major City Code is used and a Zip Code is not present, a valid five-digit Zip code for that city will be generated by the system.

  13. If North, South, East or West is shown as part of the city name, use the standard abbreviation (i.e. North = N, South = S, etc). Do Not use a major city code in this instance.

    Example: Enter As:
    West Miami W Miami
    North Ogden N Ogden

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

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

  16. 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.

  17. 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.

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

  19. If both the state and ZIP code are blank, leave both blank.

  20. APO 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 or FPO is used, do not enter 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 or FPO is to be transcribed in the city field, the state code field must correspond with the following:

      State Code ZIP Code Range Geographic Location
      AA 340 Americas
      AE 090–098 Europe
      AP 962–966 Pacific

    5. Enter all APO/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 or FPO addresses, enter 34001 for Miami, 09001 for New York, and 96201 for San Francisco or Seattle.

3.0.101.14.10.1.1  (01-01-2009)
Foreign Address

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

  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 3.0.101–12 or Exhibit 3.0.101–13). Separate the postal code from the foreign city or province by a space and the postal code.. Example: London 02.

      Note:

      If the city, state, province, or territory name exceeds 32 characters, input only the first 32 characters. This will leave the last 3 positions for a space and the postal code.

    3. Enter the foreign country in the "City" field. Spell out the country if abbreviated by the taxpayer. Example: CA is Canada, . See Exhibit 3.0.101–11 for complete list of foreign country codes. If the Country is missing or illegible, use Exhibit 3.0.101–12 to determine the country. If you are unable to determine the country, enter "ZZZ" .

      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.

3.0.101.14.11  (01-01-2009)
Money Amount Fields

  1. Amounts are transcribed in dollars only.

  2. If a negative money amount appears in a positive only field, <F3>, <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 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.

  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

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

3.0.101.14.12  (01-01-2009)
Deleting a Block

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

  2. Instructions for working the "Actual Output Report"

  3. The "Actual Output Report" list all DLN’s that was either output or deleted

    1. The "Actual Output Report" list all DLN’s that was either output or deleted.

    2. If the batch contains a DLN not on listing on the report:

      • Pull entire block and make sure the parent DLN is written or stamped on first document.

      • Give the entire block of documents to the Lead or designated employee for research

      • If block was deleted, the Lead or designated employee will route it for processing.

      • If block was not deleted and it is still on the SCRIPS system, the Lead or designated employee will take the necessary action to have the block worked and output

    3. If a document has been deleted, pull the documents from the block, make sure parent DLN is written in upper left corner of each K1 pulled.

    4. Route deleted pulled documents to Batching for further processing.

    5. Route processed documents to Files.

3.0.101.14.13  (01-01-2009)
Reserved

  1. This sub section is reserved

3.0.101.14.14  (01-01-2009)
Prior Year Revision Processing

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

    1. Assume K-1 is current year

    2. Convert transcription lines using Exhibit 3.0.101–8

    3. Continue processing.

3.0.101.14.15  (01-01-2009)
Inserting a Schedule K-1

  1. Refer to Lead or Manager.

  2. The Lead/Manager can insert a Schedule K-1 and assign it the next available DLN sequence number in the unit of work.

  3. When inserting a Schedule K-1, OE Paper mode is entered temporarily and exited following the insertion process.

  4. SCRIPS assigns a DLN to paper documents but does not print the DLN.

    • The OE operator must hand write the DLN on the paper Schedule K-1 in the upper right corner.

    • The OE operator must key in the two-digit sequence number with each Schedule K-1 that is inserted.

3.0.101.14.16  (01-01-2009)
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 K-1 will be presented.

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

3.0.101.14.17  (01-01-2009)
SCRIPS Transcription Sheets

  1. The following tables represent specific SCRIPS entry procedures.

3.0.101.14.17.1  (01-01-2009)
Payee Information - ALL DOCUMENTS

  1. Enter from Part II on new Schedule K-1 Form 1065, 1120S and 1041.

    OE/DV Screen Prompt Description Instructions
    TIN of Payee TIN

    • 1041 K-1 Beneficiary's Identifying number

    • 1065 K-1 Partners Identifying number

    • 1120S K-1 Shareholders Identifying number

    		 Enter the nine-digit TIN from the Payee area
    • If the TIN is missing, more than, or fewer than nine digits, press <ACTION> or <ENTER> to bypass the EIN field. If two or more TINS are shown, Press <Action > or <Enter> to bypass the EIN field. If two or more TINS are shown, press <ACTION> or <ENTER> to bypass the EIN field.
    First Name Line NAME1 Enter the full name as shown from the following area:
    • Form 1041 -- Beneficiary name, address and Zip code.
    • Form 1065 -- Partners name, address and Zip code.
    • Form 1120S -- Shareholders name, address and Zip code.
    If blank enter "Z" in this field.
    Second Name Line NAME2 Enter as shown or as follows:
    • If an "in-care of" name is present, enter "%" , space and then enter the name. If information is already present on Name Line 2, include as much as possible after the in care of information is input.
    • Enter Information as shown
    • If a foreign address is present, see IRM 3.0.101.14.10.1.1

3.0.101.14.17.2  (01-01-2009)
Address Information - ALL DOCUMENTS

  1. Address information for all documents

    OE/DV Screen Prompt Description Instructions
    Street Address ADDR Enter the street address from the following area:
    • Form 1041 -- Beneficiary name, address and ZIP code.
    • Form 1065 -- Partners name, address and ZIP code.
    • Form 1120S -- Shareholders name, address and ZIP code.
    a) If the address is missing or illegible enter "Z" .
    b) If a foreign address is present, see IRM 3.0.101.14.10.1.1
    City CITY Enter the name of the city. Enter the Major City Code if applicable. If city is missing or illegible enter "ZZZ"
    • If a foreign address is present, see IRM 3.0.101.14.10.1.1
    State Code ST Enter the two-digit code for the state shown. If Major City code is entered, this field is bypassed.
    • If a foreign address is present, see IRM 3.0.101.14.10.1.1
    ZIP Code ZIP Enter the ZIP code. If missing, press <ACTION> or <ENTER> to generate the generic ZIP Code.
    • If a foreign address is present, see IRM 3.0.101.14.10.1.1
    Amended Document Code ADC Enter "X" if the Amended K-1 box above Part III is checked.
    •

3.0.101.14.17.3  (01-01-2009)
Money Amounts - Form 1041 K-1 (Program 44386)

  1. Form 1041 Schedule K-1 Transcription Sheet:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.0.101.14.17.4  (01-01-2009)
Money Amounts - Form 1065 K-1 (Program 44387)

  1. Form 1065 Schedule K-1 Transcription Sheet:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.0.101.14.17.5  (01-01-2009)
Money Amounts - Form 1120S K-1 (Program 44388)

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

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.0.101.14.17.6  (01-01-2009)
Payer Information - ALL DOCUMENTS

  1. Enter from Part I on new Schedule K-1 Forms 1065, 1120S and 1041.

    OE/DV Screen Prompt Description Instructions
    Parent ID

    Note:

    In DV this field is generated from the previous screen. In OE this is the last field on the money amount template.

    		 Description

    • 1041 K-1 Estate/Trust ID

    • 1065 K-1 Partnership ID

    • 1120S K-1 Corporation ID

    		 Correct or verify the 9- digit TIN, If two or more TINS are shown, the TIN is missing. The TIN contains more or less than 9 digits::

    1. Clear field - press <ACTION> or <ENTER>

    2. if illegible, suspend unit of work.
    Parent DLN The 14–digit DLN will be stamped in the upper left margin Correct or verify the 14–digit DLN if missing or invalid.

    1. If illegible, suspend the unit of work.

    2. If DLN is 78 or 60, clear field and press ACTION/Enter twice

    3. All others, clear field and press ACTION/Enter twice.
    Payer Name Line 1 Name1 Enter the Payer Name Line 1 from the following area:
    • Form 1041 -- Name of trust or decedent's estate.
    • Form 1065 -- Partnership's name.
    • Form 1120S -- Corporation's name.
    If missing, leave blank. If illegible, suspend unit of work.
    Payer Name Line 2 Name2 If an "in-care-of" name is present, enter "%," space and then enter the name. If information is present on Name Line 2, include as much as possible after the in care of information • If a foreign address is present, see IRM 3.0.101.14.10.1.1
    Payer Street Address ADDR Enter the street address. If missing or illegible enter "Z"
    • If a foreign address is present, see IRM 3.0.101.14.10.1.1
    Payer City CITY Enter the Payer City.
    • Use Major City Code if appropriate.
    • If the city is missing or illegible enter "ZZZ" .
    • If a foreign address is present, see IRM 3.0.101.14.10.1.1
    Payer State ST Enter the Payer State. If a Major City Code is entered, this field is bypassed.
    • If a foreign address is present, see IRM 3.0.101.14.10.1.1
    Payer ZIP Code ZIP Enter the ZIP code. If missing, press <ACTION> or <ENTER> to generate the generic ZIP Code.
    • If a foreign address is present, see IRM 3.0.101.14.10.1.1

3.0.101.15  (01-01-2009)
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  (01-01-2009)
Reserved

3.0.101.17  (01-01-2009)
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 Schedule K-1's

    • 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  (01-01-2009)
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  (01-01-2009)
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 coded 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  (01-01-2009)
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  (01-01-2009)
Section 01 Errors

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

3.0.101.18.1  (01-01-2009)
General Information

  1. Section 01 contains the Payee entity data and is required for every record.

  2. Listed below are the fields contained in Section 01 that applies to K-1 processing:

    Field Field Length Title
    01TIN 09 Payee Identification Number
    01TVC 01 Primary TIN Validity Bypass Code
    01NM1 40 Payee Name Line 1
    01NM2 40 Payee Name Line 2
    01ADD 35 Payee Street Address
    01CTY 22 Payee City
    01ST 02 Payee State Code
    01ZIP 09 Payee Zip Code

3.0.101.18.2  (01-01-2009)
Section 01TIN - Payee Identification Number

  1. There is no validity check of this field.

3.0.101.18.3  (01-01-2009)
Section 01TVC — Primary TIN Validity Bypass Code

  1. This field is always blank.

3.0.101.18.4  (01-01-2009)
Section 01NM1 — Payee Name Line 1

  1. Valid characters are alpha, hyphen, blank, and numeric.

  2. Invalid Conditions:

    1. Field is completely blank.

    2. Field contains characters other than alpha, hyphen, numeric, or ampersand.

    3. A character follows two consecutive blanks.

    4. The first position contains a blank.

    5. The number of character positions is more than 40.

  3. Correction Procedure:

    1. Check for coding and transcription errors and misplaced entries and correct as needed. If name is not present, research using the TIN if present

      If Then
      There is an address match on CC INOLE Enter the name from INOLE as the Payee
      There is no information Enter "Z" and continue processing

3.0.101.18.5  (01-01-2009)
Section 01NM2 — Payee Name Line 2

  1. Valid characters are alpha, hyphen, blank, numeric, percent (%), and ampersand.

  2. Invalid Conditions:

    1. Field contains characters other than alpha, hyphen, numeric, percent (%).and ampersand.

    2. The number of character positions is more than 40

  3. Corrections Procedure:

    1. Check for coding and transcription errors and misplaced entries and correct as needed.

    2. For in-care-of names, enter the percent (%) sign, space, and then the name.

3.0.101.18.6  (01-01-2009)
Section 01ADD - Street Address

  1. Description - Field 01ADD is located in the Entity Section of the return.

    1. Valid Characters are alpha, numeric, blank, dash, or slash.

  2. Invalid Condition - Field 01ADD will generate as a field error when any of the following conditions are present:

    1. Any character is present other than alpha, numeric, blank, hyphen, or slash.

    2. The first position is blank.

    3. Any character follows two consecutive blanks.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding errors, and transcription errors.

    2. If unable to perfect, enter "ZZZ" as the street address.

  4. Multiple Addresses — If more than one address is present, research INOLE and determine the correct address as follows: Foreign Addresses see IRM (3.0.101.12.3.4.1).

    If Then
    INOLE matches one of the addresses on the return Enter the address listed on INOLE in Field 01ADD.
    INOLE does not match any of the addresses on the return Enter the first address found on the return to field 01ADD.

3.0.101.18.7  (01-01-2009)
Section 01CTY — City

  1. Description - Field 01CTY is located in the Entity Section of the return.

    • Valid characters are alpha and blank

  2. Invalid Conditions - Field 01CTY will display as a field error when any of the following conditions are present:

    1. The first position is blank.

    2. Any character is present and the second and third characters are blank.

    3. Any character follows two consecutive blanks.

    4. The Major City Code does not match any of the valid codes in the Major City Code table.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding errors, and transcription errors.

      Note:

      For a listing of Major City Codes. see Exhibit 3.0.101–6

3.0.101.18.8  (01-01-2009)
Section 01ST — State

  1. Description — Field 01ST is located in the Entity section of the return.

    1. Valid characters are alpha and blank.

  2. Invalid Condition - This field is invalid if it is not contained in the State Code Table.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding errors, and transcription errors.

    2. For a description of valid State Codes, see Document 7475 (State Abbreviations, Major City Codes, and Address Abbreviations)

  4. Correction Procedures for APO/FPO Addresses:

    1. The U.S. Postal Service established new requirements for APO/FPO addresses.

    2. If the old address appears (i.e. AP New York, NY 091XX), convert the address to the new state code abbreviation based on the ZIP Code:

    APO AA Americas 34000–34049 FPO AA Americas 34050–34099
    APO AE Europe 090XX-094XX and 096XX FPO AE Europe 095XX
    APO AP Pacific 962XX-965XX and 98700–98759 FPO AP Pacific 966XX and 98760–98799

3.0.101.18.9  (01-01-2009)
Section 01ZIP - Zip Code

  1. Description - Field 01ZIP is located in the Entity Section of the return.

    1. Valid characters are numeric and blank.

  2. Invalid Condition - Field 01ZIP will generate as a field error when any of the following conditions are present:

    1. Any character is other than numeric or blank

    2. An entry is other than five or nine positions

    3. The entry is not within the range of 00501 and 99999

    4. The first five positions are blank and an entry is present in the last four positions.

  3. Correction Procedures:

    • Correct all misplaced entries, coding errors, and transcription errors. Research any of the following for valid ZIP Code information: Document 7475, INOLE, NAMEB/NAMEE.

      If Then
      01ZIP is blank Search return and attachments for a valid ZIP, if found enter in 01ZIP
      A Major City Code is entered in field 01CTY

      1. Determine the first three digits of the ZIP Code from Exhibit 3.0.101–6

      2. Enter "01" for the fourth and fifth digits.

      There is not a Major City Code listed in field 01CTY Enter the ZIP Code for the state from Exhibit 3.0.101–6.

3.0.101.19  (01-01-2009)
Section 02 Errors

  1. This section provides instructions for correction Section 02 error conditions.

3.0.101.19.1  (01-01-2009)
General Information

  1. Section 02 contains miscellaneous data fields.

  2. Listed below are the fields contained in Section 02 that applies to K-1 processing:

    Field Field Length Title
    02PAN 20 Payer Account Number for Payer
    02TNI 01 2nd TIN NOT Indicator
    02AMD 01 Corrected/Amended Indicator
    02CD 02 Check Digits
    02NC 04 Name Control
    02TTS 01 Tin Type
    02SSA 40 SSA Specific Data


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