The purpose of Document Perfection is to code and perfect (edit) documents being input to the Automated Data Processing System (ADP) to make them readily adaptable to computer processing and to identify and properly dispose of accompanying attachments.

Generally, it is not the purpose of Document Perfection to mathematically verify or check the validity of the documents being processed. The computer will normally perform this function if the documents are coded and edited as prescribed in the applicable parts of this Section.

This manual is your main source of information in coding and editing. You will also find procedures in IRM 3.0.273, Administrative Reference Guide, which contains general and basic administrative procedures.

The following manuals or documents may be used as resources:

Refer taxpayers to the Taxpayer Advocate Service (TAS) (see IRM Part 13, Taxpayer Advocate Service) when the contact meets TAS criteria (see IRM 13.1.7, TAS Case Criteria) and you can't resolve the taxpayer's issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4, Same-Day Resolution by Operations. When referring cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), and forward to TAS in accordance with your local procedures.

The check digits consist of two alpha characters present on an IRS preprinted label or an IRS computer generated notice. (See Figure 3.11.10-2).

Figure 3.11.10-2

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Check Digits On IRS Preprinted Label

They are printed to the immediate left or right of the TIN with the exception of Form 4907, TDA/Taxpayer Delinquent Account, where they appear in the general entity area. (See Figure 3.11.10-3)

Figure 3.11.10-3

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Check Digit On Form 4907 (located in entity area)

The Name Control consists of no more than four characters and is underlined if no check digits are present. (See Figure 3.11.10-4).

Figure 3.11.10-4

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Underlined Name Control (No Check Digits Present)

The valid characters for the Name Control are alpha, numeric, ampersand (&), hyphen (-), and blank.

If the document is IMF, or BMF MFT 13, 17, 51, 52, 58, 63, 76, or 78 with a Social Security Number (SSN): (See Figure 3.11.10-5).

Figure 3.11.10-5

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Individual Name Control

If the document is BMF with an EIN:

Figure 3.11.10-6

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Business Name Control

If a name is not present or the Name Control cannot be determined, check attachments for a valid name/Name Control. If a Name Control cannot be determined, edit the document with Action Code 320.

The Taxpayer Identification Number consists of nine digits and must be present.

If the TIN is an Employer Identification Number (EIN):

Figure 3.11.10-7

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Employer Identification Number

If the TIN is a Social Security Number (SSN);

The tax period is a six digit element representing the year and month in which the tax period ended, in most cases.

When it requires editing, it is edited in YYMM format.

It is not necessary to edit a tax period if the document is for the current calendar year. (See Figure 3.11.10-8).

Figure 3.11.10-8

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Current Calendar Year—No Editing Necessary

It is necessary to edit a tax period for all fiscal and prior year documents. (See Figure 3.11.10-9).

Figure 3.11.10-9

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Fiscal Year Editing

In addition, the following specific topics are discussed in this section.

The Master File Tax Account Code (MFT) is a two-digit code which is normally preprinted or manually entered during the preparation of in-house documents. (See Figure 3.11.10-13).

Figure 3.11.10-13

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Master File Tax Account (MFT) Code

The MFT code must be compatible with the transaction code and the document code (from the DLN). See Exhibit 3.11.10-2 for compatible document codes and MFT codes, and Exhibit 3.11.10-3 for compatible transaction codes and MFT codes.

Underline the correct MFT. Do not underline any NMF cross reference MFT codes.

If the MFT code is "05" or "06" there must be a "05" or "06" in the upper right corner of the Form 813, Document Register, date box or in the upper right corner of the Form 3893, Re-Entry Document Control.

MFTs 51 and 52 are valid for tax class 5, doc codes 17, 18, 19, 24, and 87.

If the control document has been renumbered, the MFT must be compatible to the new DLN. See Exhibit 3.11.10-3. Edit the proper MFT.

If the MFT code is not present on the control document, enter the MFT from the first document in the block.

A Plan/Report Number consists of three digits and must be present if the MFT is 46, 74 or 76. The Plan/Report Number must be edited near the MFT block. If a Plan/Report number is not present, check attachments. See Figure 3.11.10-14.

Figure 3.11.10-14

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Plan/Report Number With MFT 76

The transaction date must always be present on a Revenue Receipt document.

If there is no transaction date stamped or edited on the document, search the document for a postmarked envelope or any other indication of a transaction date. (See Figure 3.11.10-15).

Note:

If both U.S. Postal Service and private meter marks are present, honor the U.S. Postal Service marks.

Figure 3.11.10-15

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Edited Postmark Date As Transaction Date

Figure 3.11.10-16

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Edited DLN Julian Date As Transaction Date

For International BMF tax due notice documents (PSC only)—edit as the transaction date, the stamped received date minus one month, or the notice date, whichever is later.

Most documents contain only a single three digit transaction code. However, the program permits up to three transactions, with their specific codes, to be input simultaneously from the same source document.

The transaction codes are identified as the primary, secondary, or tertiary (third) transaction code.

Figure 3.11.10-19

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Tertiary Transaction Code With Tertiary Transaction Amount

Amounts in the primary and tertiary (third) fields must equal the amount listed on the Form 813 in green pencil. The secondary amount should appear on the Form 813 enclosed in brackets beside the debit or credit amount. The total of all secondary transaction codes should be enclosed in brackets on the total line of the Form 813. If the secondary amount total is not listed on the Form 813, you must edit it. However, do not change the block total for the primary and tertiary (third) amounts, under any circumstances.

The maximum number of transactions that may be coded on a single input document is two (2) credits and one (1) debit. Documents coded with more than two credit transactions and one debit transaction must be rejected from processing. Edit Action Code "360" in the bottom margin of the document, preceded by the letters "AC" . Attach Form 4227, Intra-SC Reject or Routing Slip, to the document and notate the presence of more than the number of transaction codes permitted.

If the block header on the Form 813 Transaction Code Field contains TC 840, all the documents in the block must contain a Primary TC 840, or vice versa. (See Figure 3.11.10-20)

Figure 3.11.10-20

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Primary TC 840 Must Match Form 813 Block Header Transaction Code

TCs 400, 721, 840 and 843 are valid only as primary transaction codes.

Only TC 170, 180, 200, 270, 280, 340, 360, 460, 472, 570, 770, and 772 are valid as secondary transaction codes and may not be used as primary or tertiary transaction codes.

For MFT 29, Doc Code 45 is not valid with TC 280: Doc Code 48 is not valid with TC 570.

Secondary TC 460 is valid only with primary TC 670 with a Doc Code of 17. The associated transaction amount must always be blank. The Area Office Code cannot be 66 or 98, and the transaction date cannot be later than 04–22–XX (current year).

Only zero (0) transaction amount is valid for primary TC 400.

Secondary TC 170, 180, 270, 280, 460, 472, 550, 570 and 770 are valid with a zero transaction amount. All other secondary transaction codes must have a transaction amount other than zero (0).

If a tertiary transaction code is present, there must be a tertiary transaction amount. Zero is not valid as a tertiary transaction amount.

A Designated Payment Code (DPC) is used with input of TCs 640, 670, 680, 690, 694 and 700. If these TCs are input, the DPC will be coded as follows:

DPCs 01 and 02 may only be input when MFT is 01, 03, 09, 11, 12, 16 or 55.

DPC 13 is valid only with MFT 30 for tax periods 199312 through 199411.

DPCs 49, 50 and 51 are valid with MFT 13 (BMF) for tax period XXXX12 and with MFT 55 (IMF) for tax period XXXX01.

The following DPCs are valid for revenue receipt processing:

IMPORTANT: This reference was included pursuant to campus examiners' request for a text description. The edited Split Refund Indicator (SRI) is displayed on the Form 3245 (Posting Voucher - Refund Cancellation or Payment) and Form 3809 (Miscellaneous Adjustment Voucher) shown in text Exhibits.

Taxpayers have the option to split their refunds in up to three separate accounts. The Split Refund Indicator (SRI) will appear on revenue receipt transactions originating at the Regional Finance Centers. This information is based upon information submitted by taxpayers on Form 8888, Direct Deposit of Refund to More Than One Account, which must be submitted with the taxpayer’s Form 1040 series return.

Preparers in the appropriate functional areas (i.e., Deposit Activity, Accounting, Accounts Management, etc.) are required to edit this indicator in the right margin of the following forms, next to the Primary Credit Amount:

The valid codes are provided as follows:

See Exhibit 3.11.10-22, Form 3245, Posting Voucher—Refund Cancellation or Repayment, for information showing where to edit the Split Refund Indicator on the Form 3245 (Posting Voucher - Refund Cancellation or Payment). See Exhibit 3.11.10-25, Form 3809, Miscellaneous Adjustment Voucher, for information showing where to edit the Split Refund Indicator on the Form 3809 (Miscellaneous Adjustment Voucher).

Since January 2008, all Deposit Tickets (DT) and Deposit Vouchers (DV) must be assigned a 20-digit Trace ID Number, which is used as a tracking mechanism to identify each DT with its corresponding payments and each DV with its corresponding debits.

These numbers are a tool developed by the Custodial Detail Data Base (CDDB) as a means of addressing a material weakness discovered in the Service’s custodial accounting systems by the Government Accountability Office (GAO). Trace ID numbers will permit systemic reconciliation of pre-posted to posted payments and pre-posted and posted payments to deposit records.

The CDDB, an enhancement arm to the Financial Management Information System (FMIS), was created to track all individual payments that comprise a deposit ticket. The CDDB also balances the individual transactions against the deposit ticket totals which have been entered into the Interim Revenue Accounting Control System (IRACS) general ledger. The unique Trace ID Number allows all payments to be identified and added to the CDDB.

All input payment systems (i.e., Electronic Federal Tax Payment System (EFTPS), Lockbox) automatically assign a 20-digit Trace ID number to each deposit ticket.

For Manual Deposit Tickets, The Trace ID Number is assigned by the Batch, Blocking, and Transmittal System (BBTS). The first 14 digits are the Trace ID Number (for the Deposit Ticket or Debit Voucher) and the last six digits are the Transaction Sequence Number for the individual payment(s) comprising the Deposit Ticket. The Transaction Sequence Number begins with " 000001" , and is sequentially assigned to payments within a Deposit Ticket.

Although most Trace ID numbers are assigned through BBTS, it is possible that some remittance documents will contain handwritten numbers assigned on various remittance documents submitted for processing by some functions handling smaller volumes of manually processed forms.

Code and Edit examiners will not be required to edit, perfect, or assign trace ID numbers to payments or any payment documents input through ISRP prior to Transcription entry.

For additional information regarding Trace IDs, refer to instructions contained in IRM 3.12.10, Revenue Receipts.

Primarily these documents represent Field TDA collections deposited by area offices to the credit of the Campus Director. If the document reflects a transaction code for the amount entered, accept the codes as shown except as follows:

If the document does not reflect a transaction code for an amount entered, determine the appropriate code from the entry on the document as follows:

After all amount entries have been coded or "X" ed, add any secondary amount, any "X" ed failure to pay, or "X" ed interest amount to the TC 670 amount. Be sure that the total of the TC 670 and any non "X" ed amount equals the green-edited (Remittance) amount. (See Figure 3.11.10-21).

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Edited Total of TC 670 Amount Equals Remittance Amount

In most cases, the green edited (Remittance) amount should not be altered. Forms 3244, Payment Posting Voucher, with Doc Code 18 are specifically excluded from the above requirements.

When a document or posting voucher with the remittance not green-rockered is discovered in a block of remittance documents, compare the balance due amount on the document with the Form 813 listing. If the amounts agree, green-rocker the amount on the document. If the amounts do not agree, take no action. The error will be identified during computer processing as block out of balance, and will be corrected by the Blocks Out of Balance (BOB) function.

When a manual refund is issued through IDRS, a Form 3753 (Manual Refund Posting Voucher) is prepared to update the Master File.

These documents are numbered with Doc Code 45. Blocking series 200–299 are used for regular manual refund and 300–399 are used for issuing refunds from Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax. (See Exhibit 3.11.10-27).

Form 3753 is preprinted with primary TC 840 and secondary TC 770.

TC 840 must be underlined in red. It must also be present on the Form 813 that contains the block.

If the TC 770 has been deleted ("X" ed or circled) by another function using other than red ink, repeat the editing in red. If the TC 770 has not been previously deleted, underline the transaction code.

These transactions are received on Form 2287(CG) from the Accounting Operations. Accept the coding and amounts as entered on the document.

Form 3809 (Miscellaneous Adjustment Voucher) may be used to transfer payments from Excess Collection paper file into the Master File. Prepare Form 8758, Excess Collections File Addition, when a credit is located in the Excess Collection File (XSF) on IDRS.

Most refund cancellations are processed on a Standard Form (SF) 1098, Schedule of Cancelled or Undeliverable Checks, listing received with one or more Forms 813.

Coding should be done by the Accounting Operations. Be sure that the two-digit return period column has been converted to four numeric digits (YYMM). If this has not been done, follow the directions below:

The preprinted amount column should be headed with TC 841.

Form 3245, Posting Voucher, Refund Check Cancellation or Repayment, is used to input refund payments and occasionally cancellations. It should be pre-coded.

Code Form 514–B, Tax Transfer Schedule, with TC 400 near the transfer amount which must be zero. This is used to transfer a zero-balance account.

Normally, these are computer coded preprinted settlement notices with Doc Code 17. Other acceptable posting documents, including Forms 3244A, Payment Posting Voucher-Examination, Form 3244, and Form 2287(CG), require additional processing.

The Campus Clearing and Deposit function will route the correspondence items to the correspondence function. However, if there are attachments to posting vouchers that should be routed to correspondence, detach them and take the appropriate action. (See Figure 3.11.10-22).

Enter secondary TC 570 on Form 2287(CG).

If there is no primary transaction code present on the document, edit TC 670 to the immediate left of the green rockered remittance amount. If the document is Form 3244A, enter a primary TC 640 if the primary TC is not specified (See Figure 3.11.10-22).

Code any secondary amount with the appropriate code unless a code is already present, e.g. TC 360 for Fees and Collection Costs, TC 180 for FTD Penalty, TC 270 for underlined Failure to Pay Penalty, etc.

Figure 3.11.10-22

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Form 3244–A With Edited TC 640

When TC 892 is present on Form 2424 (Account Adjustment Voucher) to transfer credit from an IRAF account to a joint IMF account, a one digit code must be present in the upper right hand corner. If it is not, enter a "1" if the IRA account is for the primary taxpayer, or a "2" if the IRA account is for the secondary taxpayer. Enter "1" for EFTPS Payment Indicator. (See Exhibit 3.11.10-19 for location of payment indicator.)

Form 1041-ES is processed under MFT 05, Doc Codes 17/19, and TC 660.

Under certain conditions, a fiduciary administering trust account may be required to make estimated payments electronically. The transaction record on the electronic payment will contain a Doc Code 97, TC 660 and FLC 81.

Form 1040 payment voucher is processed under MFT 30, Doc Code 70/76, and TC 610.

The Form 1040 payment voucher is used to send in a payment when a taxpayer has a balance due on Line 75 of Form 1040 (Individual Tax Return). The voucher will enable us to process the payment more accurately and efficiently.

Taxpayers can make a Form 1040 payment electronically by direct debit or credit card. Paying electronically eliminates the need for the taxpayer to submit a paper Form 1040 payment voucher.

Form 1040-ES is processed under MFT 30, Document Code 20, and TC 430.

Document Perfection will receive any Form 1040-ES that has:

All Forms 1040-C, U.S. Departing Alien Income Tax Return, will be processed as long entity. Forms 1040-ES, Estimated Tax For Individuals, are processed according to the type of change that is made to the entity.

Some tax preparers are given permission by the IRS to submit returns on substitute forms and schedules. These substitutes must closely resemble the official forms in format. Above all, they must be acceptable to the transcription function. If the items to be transcribed are not readily recognizable for transcription, consult your supervisor.

If a schedule is not suitable for transcribing, transfer the necessary information to a dummy form.

The tax period is indicated at the top of the form.

It is not necessary to edit a tax period if the document is for the current calendar year.

If the document or payment is for other than a current calendar year, edit the year and month, in YYMM format, to the right of the tax year designation at the top of the form. (See Figure 3.11.10-23).

Figure 3.11.10-23

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Edited Tax Period For Non-Current Calendar Year

Always check the upper left and right area or Line 2 for the tax year ending. (See Figure 3.11.10-24). This could be the best indication of a fiscal year or a calendar year that is not current. However, some taxpayers enter the quarter ending rather than the current year ending. If the taxpayer has entered the quarter ending that is current, disregard the information and follow the instructions (2) above. (See Figure 3.11.10-25).

Figure 3.11.10-24

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Edited Fiscal Year Tax Period

Figure 3.11.10-25

A document is considered a prior year if the tax period is eight (8) months or more prior to the current processing date. For example, until August 31, 2010, a 2009 Form 1040-ES is considered a current year.

If a prior year Form 1040-ES is discovered in the block, edit with Action Code 611 to have it renumbered as Document Code 17, TC 670.

When editing Form 1040-ES with an IRS label there are five types of entity that may be used. The type of entity is determined by the name, address and SSN information supplied by the taxpayer. These five types of entity are as follows: