3.12.3  Individual Income Tax Returns (Cont. 1)

3.12.3.4 
Section 01, Entity And Miscellaneous Information

3.12.3.4.1  (01-01-2014)
Error Record Format, Section 01

  1. Section 01 contains the following fields:

    1040 1040A 1040EZ Field name Field Location
    01PNC 01PNC 01PNC Primary Name Control Entity Area
    01PS 01PS 01PS Primary SSN Entity Area
    01SNC 01SNC 01SNC Secondary Name Control Entity Area
    01SS 01SS 01SS Secondary SSN Entity Area
    01NL1 01NL1 01NL1 Name Line 1 Entity Area
    01NL2 01NL2 01NL2 Name Line 2 Entity Area
    01ADD 01ADD 01ADD Street Address Entity Area
    01C/S 01C/S 01C/S City/State Entity Area
    01ZIP 01ZIP 01ZIP Zip Code Entity Area
    01TXP 01TXP 01TXP Tax Period Page 1 of tax return
    01SPC 01SPC 01SPC Special Processing Code Page 1 of tax return
    01FSC 01FSC 01FSC Filing Status Code Page 1 of tax return
    01CCC 01CCC 01CCC Computer Condition Code Page 1 of tax return
    01EXC 01EXC 01EXC Exemption Code Field Page 1 of tax return
    01EXV 01EXV 01EXV Exemption Code Verified ERS Input Only
    01DSI 01DSI 01DSI Dependency Status Indicator Page 1 of tax return
    01DN1 01DN1   Dependent 1 Name Control Page 1 of tax return
    01DS1 01DS1   Dependent 1 SSN Page 1 of tax return
    01CT1 01CT1   Dependent 1 Child Tax Credit Indicator Page 1 of tax return
    01DN2 01DN2   Dependent 2 Name Control Page 1 of tax return
    01DS2 01DS2   Dependent 2 SSN Page 1 of tax return
    01CT2 01CT2   Dependent 2 Child Tax Credit Indicator Page 1 of tax return
    01DN3 01DN3   Dependent 3 Name Control Page 1 of tax return
    01DS3 01DS3   Dependent 3 SSN Page 1 of tax return
    01CT3 01CT3   Dependent 3 Child Tax Credit Indicator Page 1 of tax return
    01DN4 01DN4   Dependent 4 Name Control Page 1 of tax return
    01DS4 01DS4   Dependent 4 SSN Page 1 of tax return
    01CT4 01CT4   Dependent 4 Child Tax Credit Indicator Page 1 of tax return
    01RCD 01RCD 01RCD Received Date Page 1 of tax return
    01RPC 01RPC 01RPC Returns Processing Code Field Page 1 of tax return
    01ACD 01ACD 01ACD Audit Code Page 1 of tax return
    01PT 01PT 01PT Preparer's TIN Signature area
    01PE 01PE 01PE Preparer's EIN Signature area

3.12.3.4.2  (01-01-2014)
Entity Information

  1. The entity area consists of the taxpayer's name, address and SSN. The taxpayer's name, address and SSN (Fields 01PNC through 01ZIP) are transcribed as short entity, partial entity, intermediate entity, or long entity.

  2. The following table shows descriptions of Entity types:

    Entity Type Field Used Description
    A] Short —
    01PNC
    01PS
    01SS
    Return that agrees with EIF for name, address or Primary SSN.
    B] Partial —
    01PS
    01SS
    01NL1
    01NL2
    Return with changes in First or Second Name Line.
    C] Intermediate —
    01PNC
    01PS
    01SS
    01ADD
    01C/S
    01ZIP
    1. Return with changes in any part of the street, address, City/State or first five digits of the ZIP Code.

    2. EIF indicates a Change of Address.

    D] Long —
    01PS
    through
    01ZIP
    1. Return with a change in the Primary SSN.

    2. Return with a change in both the Name and Address.

    3. Return that does not agree with EIF for Primary SSN, name or address.

    4. Return when ISRP cannot use EIF.

    5. Entity Control Function has changed the Primary SSN or has assigned a temporary number.

    Note:

    Processing will enter the Secondary SSN, if present, at the NAP file when FSC is 2 and the Secondary SSN field is blank (i.e., short or intermediate entry).

3.12.3.4.3  (01-01-2014)
Correction Procedures

  1. Correction procedures for Section 01 fields follow.

3.12.3.4.3.1  (01-01-2014)
Field 01PNC, Check Digits/Name Control

  1. Correction procedures for Check Digits and Name Control follow.

3.12.3.4.3.1.1  (01-01-2014)
Check Digits

  1. Description — A Check Digit is a unique two-digit field that identifies the taxpayer from previous filings. The ERS screen will show the check digits as a four position field, the first two positions being blank and the second two filled with alpha digits. The Check Digit Field is located in the Entity portion of the paper return.

  2. Invalid Conditions — This field will be invalid if any of the following exist:

    1. First two positions are not blank.

    2. Third and fourth positions are not alpha characters.

    3. Additional validity checks by the computer.

  3. Correction Procedures — Enter the Name Control in Field 01PNC when the check digits are invalid. Refer to Document 7071, Name Control Job Aid, or IMF ERS Job Aid Book 2515–015.

    Caution:

    NEVER ENTER OR CORRECT CHECK DIGITS.

3.12.3.4.3.1.2  (01-01-2014)
Name Control

  1. Description — Name Control is a four position field located in the Entity portion of the return and consists of the first four letters of the primary taxpayer's last name.

  2. Invalid Conditions — This field will be invalid if any of the following exist:

    1. First position is not an alpha.

    2. The second, third, or fourth positions are not alphas, hyphens, or blank.

    3. Blanks are between characters.

  3. Correction Procedures — Compare the field with the return and overlay the correct Name Control. Blank the remaining positions when the primary taxpayer's last name is less than four characters. Refer to Document 7071, Name Control Job Aid, or IMF ERS Job Aid Book 2515–015.

3.12.3.4.3.2  (01-01-2014)
Field 01PS, Primary Social Security Number

  1. Every primary taxpayer must have a taxpayer identification number (TIN). That TIN may take several forms: a social security number (SSN), individual taxpayer identification number (ITIN), or IRS number (IRSN). In this IRM "SSN" is often used in a collective sense and may refer indiscriminately to any one of the three kinds of TIN. The IRSN may be referred to as a "temporary SSN" . The Social Security Administration issues the SSN. The IRS issues the ITIN and IRSN.

    • The SSN and ITIN may be valid or invalid.

    • The IRSN is always invalid.

    • Each of these TINs is nine spaces long and has the same structure: XXX-XX-XXXX.

    • The ITIN and IRSN always begin with the number 9. The SSN does not begin with the number 9.

    • The fourth and fifth digit of the ITIN and IRSN are restricted to certain values.

    • The valid ranges for the fourth and fifth digit of the ITIN are 70 through 88, 90 through 92, and 94 through 99. The ranges are listed below.
      9XX-70-XXXX through 9XX-88-XXXX
      9XX-90-XXXX through 9XX-92-XXXX
      9XX-94-XXXX through 9XX-99-XXXX

    • The values for the fourth and fifth digit of the IRSN are listed below. The fourth and fifth digit of the IRSN identify the center that issued the IRSN. The Fresno Service Center would have issued an IRSN in the format 9XX-89-XXXX and Kansas City one in the format 9XX-09-XXXX, for instance.
      08 and 38: Andover
      07 and 37: Atlanta
      18 and 06: Austin
      19 and 01: Brookhaven
      17 and 02: Cincinnati
      89 and 10: Fresno
      09 and 39: Kansas City
      49 and 03: Memphis
      29 and 04: Ogden
      28 and 05: Philadelphia

    Note:

    There is a fourth kind of TIN, the Adoption Taxpayer Identification number (ATIN). Though it is at least possible that a primary taxpayer would have an ATIN, it's unlikely, and for that reason it isn't described above. Like the other TINs it's nine spaces long and divided into three groups of digits: XXX-XX-XXXX. Like the ITIN it always begins with a 9, but, unlike the ITIN, its fourth digit is always 9 and its fifth digit always 3: 9XX-93-XXXX.

  2. This entry in the field is invalid in any of these conditions.

    1. The entry has fewer than nine numeric characters.

    2. The digits are all zeros or all nines.

    3. The field is blank.

  3. Correction procedures. Search the return, attachments, and Form(s) W–2 for a P–SSN when the P-SSN is invalid as outlined in the preceding (2). If you cannot find the P-SSN in the return or attachments, research with CC NAMEI, NAMES, and INOLE for P-SSN. In AUSPC research with RTS for the primary taxpayers' ITIN. Take the following action to correct the field:

    If the P-SSN is... Then...
    A] Found (valid), Enter in Field 01PS.
    B] Not Found, SSPND 211 to correspond.

    Exception:

    Conditions such as taxpayer having "Amish" , "Mennonite" , "none" , "SSN Applied For" , "NRA" , "SSA 205(c)" , or all nines or zeroes entered indicates that the person may be eligible to obtain an ITIN. SSPND 320 to have an IRSN assigned by Entity.

    Note:

    Check for the presence of Form W-7. If present, see Exhibit 3.12.3-11 for routing.

    Note:

    When returns come back from Entity with an IRSN, enter "O" in Field 01RPC and "0" (zero) in the first position of Field 01EXV if applicable. If the taxpayer indicates that he or she is Amish or Mennonite, don't enter RPC "O" or "0" (zero) in the first position of field 01EXV. Do enter RPC B though.

  4. SSPND 351 when IDRS is unavailable.

  5. FOR AUSPC ONLY-If the return has an ITIN, written in red ink and "W-7" is stamped in the bottom left hand corner of the return, follow the instruction in the following table:

    Note:

    An ITIN begins with the number "9" and the fourth and fifth numbers range from 70–88, 90–92, and 94–99; (9XX-70-XXXX through 9XX-88–XXXX), (9XX-90-XXXX through 9XX-92-XXXX), or (9XX-94-XXXX through 9XX-99-XXXX).

    If... Then...
    A] The ITIN Operation stamped or wrote "rejected" for the primary taxpayer, SSPND 320 to Entity Control for a temporary number. (If a red temporary number is already written (9XX-18-XXXX) on the return with that number in TIN Field, See Note Below)
    B] No primary ITIN is written, but RTS research shows Form W-7 in status S or U (Suspended or Unworked). Print the RTS screen and attach the print to the front of the return. SSPND 640 to ITIN. Indicate the status on Form 4227.
    C] Original W-7 attached to return, SSPND 640 to ITIN. Write "W-7 attached " on Form 4227.

    Note:

    When returns come back from Entity with temporary numbers, enter "O" in Field 01RPC and "0" (zero) in the first position of Field 01EXV if applicable.

3.12.3.4.3.3  (01-01-2014)
Field 01SNC, Secondary Name Control

  1. Description — The Secondary Name Control is a four position field valid that consists of the secondary taxpayer's last name. If the last name contains fewer than four characters, the name control will be shorter than four characters.

  2. Invalid Conditions — This field will be invalid if any of the following exist:

    1. First position is not an alpha.

    2. The second, third, and fourth positions are not filled with an alpha or hyphen or are not blank.

    3. Blanks occur between characters.

  3. Correction Procedures — Compare the field with the return and overlay the correct Name Control. Blank the remaining positions when the secondary taxpayer's last name is less than four characters.

    1. If the FSC is 3 or 6 the secondary name control should not be present. Delete the secondary name control.

    2. Refer to Document 7071, Name Control Job Aid, or Job Aid Book 2515–015.

3.12.3.4.3.4  (01-01-2014)
Field 01SS, Secondary Social Security Number

  1. Description — Secondary Social Security Number (S-SSN), consisting of nine numbers, must be present on every joint return. Correspond for the Secondary SSN when any of the following exist:

    1. Estimated Tax Payment is claimed but was paid under a different name.

    2. SE Tax (Self Employment) is being paid for the secondary taxpayer.

    3. IRA (Individual Retirement Arrangement) Form 5329, is reported for the Secondary taxpayer.

    4. Primary taxpayer is deceased and it is a joint return.

    5. Form 4137 tax is being paid for the secondary taxpayer.

    6. Schedule H is filed for the secondary taxpayer.

    7. Form 8606 is filed for the secondary taxpayer.

    8. Form 8919 tax is being paid for the secondary taxpayer.

      Note:

      Any reference to an SSN will also include the ITIN.

  2. Invalid conditions. This field will be invalid if fewer than 9 numeric characters are present.

  3. Correction procedures. Search the return, attachments, and Form W-2(s) for an S–SSN when the S-SSN is invalid. If you cannot find the S-SSN in the return or attachments, research with CC ENMOD and/or INOLE for a cross-reference with the P-SSN. In AUSPC research with RTS for the secondary taxpayer's ITIN. Take the following action to correct the field:

    If an S-SSN is... And... Then...
    A] Found,   Enter in Field 01SS.
    B] Not Found, Not required (see the preceding (1)), Delete any invalid data in Field 01SS.
    Note: Request the S-SSN if other correspondence is needed.
    Is required, SSPND 211 to correspond.

    Note:

    Check for the presence of Form W-7. If present, see Exhibit 3.12.3-11.

  4. AUSPC only:If the ITIN Operation stamped or wrote "rejected" for the secondary taxpayer SSPND 320 to Entity for a temporary number, if required as listed in (1).

  5. When IDRS is not available, SSPND 351.

  6. When return is a No Reply to an IRS request for a valid SSN or non-compliance because of religious beliefs and the S-SSN is required, SSPND 320 to have a temporary SSN assigned by Entity.

3.12.3.4.3.5  (01-01-2014)
Field 01NL1, First Name Line

  1. Description — The First Name Line is thirty-five spaces long. If the Name Line exceeds 35 spaces, a pound sign, #, will fill the final position.

  2. Invalid Conditions — This field will be invalid if any of the following exist:

    1. Characters are not alpha, ampersand, hyphen, less-than sign (<), or blank.

    2. The less-than sign is not present.

    3. More than two less-than signs are present.

    4. The first character is a less-than sign, blank, or ampersand.

    5. The last character is a less-than sign.

    6. The character immediately following the first less-than sign is not an alpha.

    7. A blank immediately precedes a less-than sign.

    8. Two or more consecutive embedded blanks are present.

    9. An ampersand occurs between two less-than signs.

    10. Two or more ampersands are present.

    11. An ampersand is present in the First Name Line and the Document Code is 26, 27, 72, or 73.

  3. Correction Procedures — Compare the fields displayed with data on the return. Correct any editing and transcription errors.

    Note:

    Do not enter information beyond column 41 of the ERS screen display.

  4. Delete all titles such as Mr., Dr., Reverend, etc.

    Exception:

    Do not delete Mrs. when a woman is using her husband's name; e.g., Mrs. John Smith.

  5. Use the following chart as a guide to correct various error conditions in the First Name Line:

    Error Condition Correction
    Joint Return, different last names. Less than sign before and after Primary Taxpayer's last name.

    Example:

    01NL1 JOHN A<DOE<& JANE B SMITH

    Joint return, one person deceased, same names. Enter DECD after the first name and/or initial of the deceased taxpayer.

    Example:

    01NL1 JOHN A & JANE B DECD<DOE

    Joint return, one person deceased, different name. Enter DECD after the last name of the deceased taxpayer.

    Example:

    01NL1 JOHN A<DOE< & JANE B SMITH DECD

    Example:

    01NL1 JOHN A<DOE<DECD & JANE B SMITH

    Joint return, both taxpayers deceased, same name Enter DECD after the first name and/or initial of each taxpayer

    Example:

    01NL1 JOHN A DECD & JANE B DECD<DOE

    Joint return, both taxpayers deceased, different names Enter DECD after each last name

    Example:

    01NL1 JOHN A<DOE<DECD & JANE B SMITH DECD

    Joint return and JR or SR to be carried after deceased Enter JR or SR before <DECD or at the end of the name line.

    Example:

    01NL1 JOHN A JR DECD & JANE M <DOE

    Example:

    01NL1 JOHN A DECD & JANE<DOE<SR

    Other than joint return and deceased. Enter DECD after the last name of the deceased taxpayer.

    Example:

    01NL1 JOHN A<DOE<DECD

    No first name (only last name). Enter a hyphen preceding the less-than (<) sign.

    Example:

    01NL1 —<DOE

    When in-care-of (%). Transcribe in Second Name Line using c/o

    Example:

    01NL2 C/O DON B SMITH

    For Minor/Child Name Line, See IRM 3.11.3.7.1.3.2 (Refer to manager or lead tax examiner)

    Note:

    Research IDRS when the First Name Line is not present or incomplete. Enter as Short Entity if not found. See IMF Job Aid 2515–015 for additional information.

  6. When the name is longer than 35 spaces, abbreviate the First Name Line according to the priority below. When you complete the step that reduces the name to 35 or fewer spaces, stop editing the name.

    1. Shorten the secondary taxpayer's middle name to the initial.

    2. Shorten the primary taxpayer's middle name to the initial.

    3. Delete the secondary taxpayer's second initial.

    4. Delete the primary taxpayer's second initial.

    5. Shorten the secondary taxpayer's first name to the initial.

    6. Shorten the primary taxpayer's first name to the initial.

    Note:

    Use initials only for primary and secondary taxpayers' first name if the total characters will exceed the maximum of 35.

    Note:

    The computer will drop off anything after column 41.

3.12.3.4.3.6  (01-01-2014)
Field 01NL2, Second Name Line

  1. The Second Name Line is 35 spaces long. If the Name Line exceeds 35 spaces, a pound sign, #, will fill the final position.

  2. Names preceded by the in-care-of sign, %, are transcribed in the Second Name Line Field.

  3. When the entity is Long or Partial and a Second Name Line is present, the First Name Line must be present.

  4. When Field 01CCC contains an L or W, the Second Name Line must be present if the entity is partial or long.

  5. This field will be invalid if any of the following exist:

    1. Characters are not alpha, numeric, ampersand, hyphen, percent, slash, or blanks.

    2. A pound sign fills the final position–because the name is longer than 35 characters).

  6. Examine the return and determine the type of entity when Field 01NL2 requires correction. See Job Aid Book 2515-015 for a list of acceptable abbreviations.

    Note:

    Do not enter information beyond column 41 of the ERS screen display. If you have to reduce the number of characters, refer to the steps for abbreviation in IRM 3.12.3.4.3.5(6).

3.12.3.4.3.7  (01-01-2014)
Field 01ADD, Street Address

  1. Street address contains 35 characters. If more than 35 characters (including spaces), the last position will display with a # sign.

  2. This field will be invalid if any of the following exist:

    1. Characters are not alpha, numeric, hyphen, slash, or blanks.

    2. Pound (#) sign in last position (over 35 characters).

    3. When Field 01ADD is present, the first position must be alpha or numeric, and there cannot be consecutive embedded blanks/spaces.

  3. Use the following rules when entering the street address in Field 01ADD from the return or attachments:

    If the address... Then...
    A] Has % or "in-care of" , Use C/O.
    B] Has One-half, Use 1/2.
    C] Has &, Use AND.
    D] Has a pound (#) sign, abbreviation "No." , or the word "number" as a prefix to a house, street, route, apt, or P.O. Box, Omit the pound (#) sign, abbreviation "No" , or word "number" .
    E] Has an apartment number,
    1. Enter the abbreviation "APT" before the alpha or numeric.

    2. Enter both street address and apartment number.

    F] Includes both a street address and a P.O. Box number,
    1. Enter the street address in Field 01NL2.

    2. Enter the P.O. Box in Field 01ADD.

    G] More than 35 characters and all of the address is necessary,
    1. Correct as long entity.

    2. Start address in Field 01NL2.

    3. Separate the address in a comprehensible manner.

    H] Has consecutive embedded spaces, Delete the consecutive embedded blanks/spaces.

    Note:

    Do not enter information beyond column 41 of the ERS screen display.

3.12.3.4.3.8  (01-01-2014)
Field 01C/S, City and State

  1. Description — City/State Field is 25 characters. Data may be the City-State or a Major City Code (MCC).

  2. APO/DPO/FPO will be used as the city name for military addresses and should only be used with state codes AA, AE, or AP and will be in the following format:

    Field 01C/S Field 01ZIP
    APO/AE 090XX–098XX
    APO/AP 962XX–966XX
    APO/AA 340XX

    Note:

    DPO or FPO can be substituted for APO in the preceding chart. They use the same state and ZIP code ranges. APO/DPO/FPO filers are instructed to file at AUSPC; however, if received at a different campus, process as normal. If the ZIP code is missing, enter the first three digits that apply to the state code and enter "01" as the last two digits.

  3. Invalid Conditions — This field will be invalid when any of the following apply:

    1. Any character is other than alpha or blank (the slash is used only to separate the city and state for the computer).

    2. The slash is not preceded by at least three valid characters.

    3. The slash is followed by something other than two alpha characters.

    4. City/State or major city code is present and the first position is blank.

    5. The state is not contained in the following state code table:

    APO/DPO/FPO and State Codes
    AA—APO/FPO Atlantic MS—Mississippi
    AE—APO/FPO Europe MO—Missouri
    AL—Alabama MT—Montana
    AK—Alaska NE—Nebraska
    AP—APO/FPO Pacific NV—Nevada
    AZ—Arizona NH—New Hampshire
    AR—Arkansas NJ—New Jersey
    CA—California NM—New Mexico
    CO—Colorado NY—New York
    CT—Connecticut NC—North Carolina
    DE—Delaware ND—North Dakota
    DC—District of Columbia OH—Ohio
    FL—Florida OK—Oklahoma
    GA—Georgia OR—Oregon
    HI—Hawaii PA—Pennsylvania
    ID—Idaho RI—Rhode Island
    IL—Illinois SC—South Carolina
    IN—Indiana SD—South Dakota
    IA—Iowa TN—Tennessee
    KS—Kansas TX—Texas
    KY—Kentucky UT—Utah
    LA—Louisiana VT—Vermont
    ME—Maine VA—Virginia
    MD—Maryland WA—Washington
    MA—Massachusetts WV—West Virginia
    MI—Michigan WI—Wisconsin
    MN—Minnesota WY—Wyoming

  4. Compare the screen display with the entry on the return. Correct the field display when it appears that a field was transcribed incorrectly. GTSEC 01 and correct all fields in the section when it appears to be a slipped field (when transcription inputs an entry on the wrong line resulting in all subsequent entries for the section being input on wrong lines).

  5. Refer to IRM 3.12.3.3.8 on International returns.

  6. Use the following table to correct field error:

    If the City/State... Then...
    A] Exceeds 25 characters, Consult the lead tax examiner or manager.
    B] Is missing and is required, Enter data for short entity only.
    C] Has more than one address and one is a permanent address, Use the permanent address.
    D] Is a temporary Foreign Address, See your manager to determine if a manual refund should be issued.
    E] Contains numeric characters, Convert to alpha characters (i.e., 1000 Oaks to Thousand Oaks).
    F] Contains ampersand (&), Convert to "AND" .

3.12.3.4.3.9  (01-01-2014)
Field 01ZIP, ZIP Code

  1. Description. The field for the ZIP Code is a numeric five-character field.

  2. Invalid Conditions. An entry in the field is invalid in any of the circumstances below.

    1. It's not numeric–not 0 (zero) through 9.

    2. It's fewer than five digits long.

    3. It's more than five digits long, in which case ISRP enters a pound sign in the final position.

    4. It's blank.

    5. Its fourth and fifth character are 00.

  3. Correction Procedures. Search the return and attachments for the ZIP Code when it is incorrect or not present. Use the following table to correct the field error:

    If a ZIP Code is And Then
    A] found, is for that address, Enter the correct five-digit Zip Code in Field 01ZIP.
    is not for that address,
    1. Determine the three-digit code for the address and enter it in Field 01ZIP. Refer to Exhibit 3.12.3–10 for the three-digit code.

    2. Enter 01 in the fourth and fifth position of Field 01ZIP.

    B] not found, the address is an APO or FPO, Enter the ZIP Code according to this table.
    AE: 09001
    AP: 96201
    AA: 34001
    the address is not a APO or FPO,
    1. Determine the three-digit code for the address and enter it in Field 01ZIP. Refer to Exhibit 3.12.3–10 for the three-digit code.

    2. Enter 01 in the fourth and fifth position of Field 01ZIP.

    Note:

    DO NOT USE a campus ZIP Code or an APO/FPO ZIP Code for a non-APO/FPO address. Use only the first five digits of the ZIP Code. The Field 01ZIP does not hold information beyond the fifth position.

3.12.3.4.3.10  (01-01-2014)
Field 01TXP, Tax Period

  1. The field Tax Period holds the tax year and the ending month of the period. The tax period is in the format YYYYMM. The current period is never transcribed for current-year returns. It is transcribed for prior- and fiscal-year returns.

  2. This field is invalid if the tax period is other than those shown on the following chart:

    Valid tax periods
    Form Current year Prior year
    A] 1040, including fiscal-year returns tax period not less than 201312 or more than current year and month. 196212 to 201311
    B] 1040A 201312 only calendar year 197212 to 201212
    C] 1040EZ 201312 only calendar year 198212 to 201212

  3. Field 01TXP will also be invalid when any of the following exist:

    1. Return is for a non-ADP tax period—before 196212.

    2. Forms 1040A/EZ is present for any fiscal-or short-year tax period (e.g., fiscal or short year tax period, 201302, month other than "12" ).

    3. Return shows a future tax period later than the current year and month.

  4. Verify the tax period on the return or attachments and correct any coding or transcription errors. Use the following table to correct field error:

    The tax period is The form is Then
    A] 201312 (current), 1040/A/EZ, blank field 01TXP; the programming generates 201312.
    B] before 196212 1040/A/EZ, SSPND 620.
    C] before 197212 1040A, SSPND 610 to renumber to Form 1040.
    D] before 198212 1040EZ, SSPND 610 to renumber to Form 1040.
    E] fiscal or short year 1040A/EZ, SSPND 610 to renumber to Form 1040
    F] future period: later than current year and month 1040/A/EZ, refer to Lead Tax Examiner. See the exception.

    Exception:

    Refer to EC 260 when the return is an early filed decedents. (Also refer to EC–002, EC–042 and EC–046.)

3.12.3.4.3.11  (01-01-2014)
Field 01SPC, Special Processing Code

  1. Description. A special processing code (SPC) is an alphabetic or numeric character that flags a condition or triggers a computation. The number of SPCs in a return may not exceed ten. These codes are used for campus processing and are not posted to the Master File. These codes supplement the return processing codes.

  2. Invalid Conditions. This field will be invalid if other than the following:

    1. Form 1040 (Doc Code 11, 12, 21 or 22) is other than 1, 2, 3, 4, 5, 6, 7, 8, 9, A, B, C, E, F, G, J, K, L, M, N, O, Q, R, S, T, U, W, X, Y, or Z.

    2. Form 1040A (Doc Code 09 or 10) is other than 8, 9, A, B, E, F, G, J, K, M, Q, S,or T.

    3. Form 1040EZ (Doc Code 07, 08 or 28) is other than 8, 9, B, E, J, M, Q, S ,or T.

  3. Correction Procedures - Refer to the Special Processing Code Exhibit 3.12.3–6 to determine the correct codes.

3.12.3.4.3.12  (01-01-2014)
Field 01FSC, Filing Status Code

  1. Description. The filing status code (FSC) for Form 1040 and Form 1040A is determined by the filing status checked by the taxpayer (FSC 1 through 5; or FSC 6 or 7 coded by Code and Edit). For Form 1040EZ, the FSC is determined by the number of names in the caption (FSC 1 = one name and FSC 2 = two names).

  2. The meaning of the FSCs are as follows:

    • Code 1: Single taxpayer

    • Code 2: Married taxpayer filing a joint return

    • Code 3: Married taxpayer filing a separate return and spouse is also filing a separate return

    • Code 4: Head of Household, for an exemption claimed in position 3, 5, 6, or 7 of Field 01EXC

    • Code 5: Widow(er) with dependent child

    • Code 6: Married taxpayer filing a separate return but claims an exemption for a spouse who has no income and who is not filing a return

    • Code 7: Head of Household, for taxpayers who don't take a dependent exemption but
      • write a child's name on line 4 of Form 1040 or Form 1040A or
      • show a qualifying child in Form 2441, Form 8814, or Schedule EIC.

      Note:

      Taxpayers who write in a name on line 4 don't have to provide a TIN for the dependent . The qualifying child in Form 2441 or 8814 or Schedule EIC must have a valid TIN for the taxpayer to qualify for this variant of the filing status Head of Household.

  3. Invalid Conditions. The entry in this field is invalid if it's not 1 through 7 for Form 1040 or Form 1040A or not 1 or 2 for Form 1040EZ.

  4. Correction Procedures. Use the following table to code Field 01FSC:

    If... And... Then...
    A] The taxpayer checked no boxes, There is one name in caption, Enter 1 in Field 01FSC.
    There are two names in caption, Enter 2 in Field 01FSC.
    B] Multiple boxes are checked or the FSC is inconsistent with information on return,   Use FSC that corresponds with taxpayer's taxable income and tax computation (see note).
    C] FSC 2 is on a Form 1040EZ, The tax period is TY82 — TY92,
    1. Process as normal prior-year return using correct standard or itemized deduction for filing status (computer will apply FSC 2 rates).

    2. Assign appropriate TPNC if necessary.

    Note:

    Before determining the FSC, verify that taxpayer meets the qualifying criteria by the filing status chart. Refer to the Filing Status Chart located in the ERS Job Aid Book 2515–015.

  5. Research IDRS using CC INOLE/RTVUE to determine filing status in prior year(s), if necessary.

  6. When the correct FSC cannot be determined, SSPND 211 with Form 5129.

3.12.3.4.3.13  (01-01-2014)
Field 01CCC, Computer Condition Codes (CCC)

  1. Computer Condition Code (CCC) Field is an alpha and/or numeric character edited by Code and Edit to alert the computer and Master File to a special condition. Some CCCs are also generated by the computer. A CCC will post to the Master File. The number of CCCs may not exceed ten. CCCs are edited as follows:

    1. Form 1040/A is edited in the center of the return, to the right of the "Single" box.

    2. Form 1040EZ is edited to the left of the Wages Line.

  2. This field will be invalid if other than the following:

    1. Form 1040 (Doc Code 11, 12, 21 or 22) — is other than 2, 3, 4, 5, 6, 7, 8, 9, A, B, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, U, V, W, X, Y, or Z.

    2. Form 1040A (Doc Code 09 or 10) — is other than 2, 3, 4, 7, 8, 9, A, B, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, U, W, X, Y, or Z.

    3. Form 1040EZ (Doc Code 07, 08 or 28) — is other than 3, 4, 7, 8, 9, A, B, D, E, F, G, H, J, K, L, M, N, O, P, Q, R, U, W, X, Y, or Z.

  3. Determine and enter the correct code when necessary. Refer to Computer Condition Code Exhibit 3.12.3–4.

    Note:

    When multiple CCCs are entered, CCC 3 must be in the first position.

  4. SSPND 610 for renumbering when a Form 1040X has a CCC 5 or 6 preceded by a CCC G and is not in blocking series 990–999 or vice versa.

    Note:

    CCC 5 or 6 must always be preceded by a CCC G.

3.12.3.4.3.14  (01-01-2014)
Field 01EXC, Exemption Codes, 8 positions

  1. Exemption Code(s) support the exemption(s) claimed by the taxpayer. Refer to the exemption code chart located n the ERS Job Aid 2515–015.

  2. Exemption descriptions are as follows:

    1. Placement of the code within the field identifies the exemption(s).

    2. The exemption code is computer generated for positions 1 (primary taxpayer) and 2 (secondary taxpayer).

    3. Code and Edit determines exemption positions 3 through 8.

    4. Exemption positions 5 through 8 are edited in the right margin by the printed description of dependency.

      Note:

      Correction to Field 01EXC should be made for editing and transcription errors only.

  3. The following are the descriptions of Exemption Positions used by Code and Edit:

    • Position 3: Children, grandchildren, adopted children, step-children living at home.

    • Position 4: Children who did not live with the taxpayer because of divorce or separation.

    • Position 5: Parents, grandparents, step-parents, mother/father-in-law.

    • Position 6: Qualifying children (i.e., eligible foster child, nieces/nephews, brothers/sisters, wards)

    • Position 7: Cousins, son/daughter-in-law, NRA spouse and FSC 4 with other exemptions, "NRA" /"SSA 205c" , "Canada" , "Mexico" , "CN" , or "MX" dependents or no relationship indicated

    • Position 8: Excess dependents (overflow)

  4. Any time the taxpayer claims a dependent in position 4, children who did not live with the taxpayer, SSPND 211 if one of the following is not attached:

    Note:

    Do not correspond if the dependent's TIN is missing or invalid.

    • Form 8332 (Release of Claim to Exemption for a Child of Divorced or Separated Parents),

    • Form 2120 (Multiple Support Declaration),

    • Copy of a divorce decree releasing the claim of exemption for that child

  5. This field will be invalid when any of the following exist:

    1. The field is all blank.

    2. The field contains other than numerics.

    3. Position one is other than 1.

    4. The correction input does not have every position entered.

    5. Position two is other than 0 (zero) or 1.

  6. This field will also be invalid when the Doc Code is 07 or 08 and either of the following exist:

    1. When Field 01FSC is 1, and position two through four of Field 01EXC is other than 0 (zero).

    2. When Field 01FSC is 2, and position two is other than 1 or positions three and four, of Field 01EXC, are other than 0 (zero).

  7. Take the following actions to correct the field error:

    1. Correct transcription and/or coding errors.

    2. Determine the correct exemption coding from the information on the return.

    3. Enter an entry in each position of the field.

  8. Only allow the exemptions that are supported by name (if used in the tax computation) when the taxpayer fails to total the exemptions.

3.12.3.4.3.15  (01-01-2014)
Field 01EXV, Exemption Verified, 8 positions

  1. Description — Exemption Verified Field is for ERS input only and is used by ERS Tax Examiners to make changes to exemptions claimed by the taxpayer. Field 01EXV will appear as blank. When entering data in Field 01EXV, all 8 positions must be entered.

  2. Invalid Condition — This field will be invalid when positions 1 and 2 are other than 1 or 0 (zero).

3.12.3.4.3.16  (01-01-2014)
Field 01DSI, Dependency Status Indicator,1 position

  1. Description — Dependency Status Indicator (DSI) is used to inform the computer that the primary taxpayer can be claimed as a dependent on someone else's return.

  2. Code and Edit will code a 1 directly above line 6c, column (4) on Form 1040/A (ISRP transcribes from the "You" or "Spouse" box on line 5, Form 1040EZ) when the taxpayer did not make an entry in the box on line 6a and did not enter an exemption for themselves on the line to the right of lines 6a and 6b in the right hand margin of Form 1040/A. (Refer to EC 252.)

  3. When a 1 is present in Field 01DSI all of the following will apply:

    1. The computer will limit the exemption amount for the primary taxpayer to zero.

    2. Standard Deduction Computer will be the greater of earned income plus $350 or $1,000 for TY13, earned income plus $300 or $950 for TY09 -TY12, (earned income plus $300 or $900 for TY08), not to exceed the basic standard deduction for the filing status claimed.

    3. The computer will not allow any dependent exemptions.

    Note:

    On any return when DSI 1 is valid and Field 01EXV is being used, enter 0 (zero) in positions 1 and 3 through 8 of Field 01EXV.

  4. Invalid Conditions — This field will be invalid if other than blank or 1.

3.12.3.4.3.17  (01-01-2014)
Field 01DN1, 01DN2, 01DN3, 01DN4,, Dependent Name Control

  1. Dependent Name Control is a four position field that consists of the first four letters of the dependent's last name and is located in the exemption area of the return. Code and Edit will edit the name control from Schedule EIC, attachments, or the primary taxpayer's name control. They will also "X" dependents without SSNs.

    Note:

    Field 01DN1/2/3/4 is entered on 199612 and later returns.

  2. This field will be invalid when either of the following exist:

    1. The first position is not an alpha.

    2. The second, third, or fourth positions are not alpha, hyphen, or blank.

  3. Compare the field with the return and correct accordingly. Blank the field when the dependent's SSN is not present.

3.12.3.4.3.18  (01-01-2014)
Field 01DS1, 01DS2, 01DS3, 01DS4, Dependent SSN

  1. Dependent SSN Field is located in the exemption area of the return. Code and Edit will edit the missing SSN from the return and attachments when not present, if possible.

    Note:

    Field 01DS1/2/3/4 is entered on 199612 and later returns.

  2. This field will be invalid when fewer than nine numeric characters are present. If EC 252 appears, send TPNC 605.

  3. When a correction is required to a TY96 or later return, search the return and attachments for the Dependent SSN and take the following action:

    If Dependent SSN is... Then...
    A] Found, Enter in the appropriate field.
    B] Not Found, Blank the field.

    Exception:

    See paragraph (4) and (5)

  4. Enter a value of 1 to 4 (number of allowable dependents) in Field 02DTR when a dependent is listed as Amish, Mennonite, or if Form 4029 is indicated.

  5. Search the return and attachments for an official document such as a birth certificate when there is any indication that the dependent "Died" , or was born and died in the tax year. If there is an indication of "Died" on the return:

    Note:

    There must be an indication that the child was born alive; an exemption cannot be claimed for a stillborn child.

    If... Then...
    A] The information clearly shows that the child was born within the tax period of the tax return and died in the same or consecutive tax period.

    Note:

    The word "Died" in column 2 of line 6c of the tax return satisfies this requirement.

    1. Enter I in Field 01RPC.

    2. Enter the number of allowable dependents in Field 02DTR. (If 4 or more, enter 4 in Field 02DTR.)

    Note:

    If EIC is being claimed and EC 010 redisplays after an entry is made in Field 02DTR, enter C in the Clear Field.

    B] Data indicates child was not born and died within the tax period of the return,
    1. Treat as missing.

    2. Do not enter a value in Field 02DTR.

    C] Date of birth is not found, SSPND 211 to correspond for a copy of the child's birth certificate.

  6. Do not enter a value in the Field 02DTR when either of the following are noted (these are not valid reasons for a missing Dependent SSN):

    • "U.S. Adoption Pending"

    • "12/08"

  7. If a dependent SSN is missing and taxpayer notes "Pending Adoption" , and /or Form W-7A, Application for IRS Adoption TIN is attached or"Detached Form W-7" is edited in the margin then do the following:

    1. Research CC ATINQ to determine if an ATIN has been assigned (CC ATINQ with definer S followed by the SSN of the applicant and transmit).

    2. If Field STAT-CD> is "A" , then enter the ATIN present in Field ATIN> into the ERS SSN Field for the dependent the ATIN was issued for.

    3. If Field STAT-CD> is "S" or "R" , SSPND 640 to Rejects and note on Form 4227 ATINQ STAT CD "S" or "R" .

    4. If Field STAT-CD> is "E" , "U" , or "H" , disallow the exemption for the dependent using Field 01EXC.

    5. If there is no response to CC ATINQ research see Exhibit 3.12.3-11.

3.12.3.4.3.19  (01-01-2014)
Field 01CT1, 01CT2, 01CT3, 01CT4, Dependent Child Tax Credit Indicator, 1 position

  1. Dependent Child Tax Credit Indicator Field is used for TY98 and later. The taxpayer writes an "X" or a "check" in column 6c(4) to indicate a dependent is eligible child for Child Tax Credit. An entry by the taxpayer will be transcribed in the field as a "1" . The default value for the field is "0" (zero).

  2. These fields will be invalid if they contain values other than 0 (zero) or 1.

  3. Verify that Fields 01CT1/2/3/4 are transcribed correctly.

3.12.3.4.3.20  (01-01-2014)
Field 01RCD, Received Date

  1. The received date is the date that a return was received by the IRS.

  2. Description

    • The received date is edited by hand or stamped near the center of Form 1040/A and to the left of line 6 on Form 1040EZ by a campus, area office, territory office, Taxpayer Advocate. The city and functional area within the site—CSCO, Exam, ICT, CIS, AM, for instance—should appear in the date stamp too.

    • The received date must be entered in Field 01RCD in the format YYYYMMDD: YYYY = year, MM = calendar month, and DD = day of the month.

    Caution:

    The received date will not always appear in the location mentioned above. Accept the earliest received date as long as it is determined to be an IRS received date.

  3. Do not use a received date that has been circled. Another function has determined that the date is not valid. Follow the instructions in paragraph 10, below, in IRM 3.12.3.4.3.20, for determining the received date if the other function has not provided a received date.

  4. Invalid conditions. The entry in this field is invalid when it is

    • not numeric or

    • blank or

    • not in the format YYYYMMDD or

    • earlier than 19630101 or

    • later than the current processing date

  5. Field 01RCD will also be invalid if the date is not within the following valid month and day ranges:

    Month Day
    01 01–31
    02 01–28 (29 in leap year)
    03 01–31
    04 01–30
    05 01–31
    06 01–30
    07 01–31
    08 01–31
    09 01–30
    10 01–31
    11 01–30
    12 01–31

  6. The received date cannot be any of the following:

    1. later than the date of the error record shown in the title line.

    2. earlier than the ending month and year of the tax period in Field 01TXP.

  7. Field 01RCD must hold a received date when the return is any of the following:

    • an amended return

    • a superseded return

    • a fiscal-year, prior-year, or short-year return

    • an early-filed decedent return

    • a delinquent return≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • a return processed after June 3rd or the Julian date in the DLN is 155 (156 if a leap year) or later

  8. Correction Procedures — Delete data in Field 01RCD when the received date is not required.

  9. Consider the return filed on time and enter the return due date in Field 01RCD when all of the following conditions exist:

    1. The return was originally received on time.

    2. Code and Edit or ITIN corresponded with the taxpayer.

    3. No received date is stamped or edited on the return.

  10. Determine the received date by the following priorities when one is needed but is not stamped on the return or a valid handwritten received date is not present:

    1. Latest postmark on the envelope (post office mark) or the latest date from a designated private delivery service (PDS) mark. When the envelope or label is not attached, use the postmark date stamped or handwritten on the return to determine the received date.
      See IRM 3.12.3.4.3.20.1 for determining a valid post office mark or IRM 3.12.3.4.3.20.2 for determining a valid PDS mark.

      Caution:

      Some stamps and labels show the date of sale. Do not confuse the date of sale with the date of use. Use only the cancellation date of the stamp or label for the latest postmark.

    2. Service Center Automated Mail Processing System (SCAMPS) digital dates.

    3. Latest date by the taxpayer's signature(s).

      Note:

      For prior-year returns use the signature date only if it is within the current year.

      Note:

      Do not use the date of the tax preparer's signature.

    4. Julian date in the DLN minus 10 days

      Note:

      Do not accept dates generated by FAX machines on returns or correspondence.

  11. Review the return for the words "Sent Back for Signature" or a similar statement with a date present in the lower left corner of the return. These are returns that were originally received without a signature and were mailed back to the taxpayer from Receipt and Control. If a date and the phrase "Sent Back for Signature" are present, follow the instructions below for determining the received date:

    1. If the return is a balance due and a received date is within 30 days of the "Returned for signature date stamp" , honor the date the return was sent back for signature.

    2. If the return is a balance due and a received date is more than 30 days after the "Returned for signature date stamp" , honor the latest received date.

    3. If the return is a refund, honor the latest received date.

      Note:

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

  12. Use the following table for processing exceptions to correcting the received date:

    The return... Then...
    A] Is filed on time, Delete the data in Field 01RCD.
    B] Has multiple received dates, Enter the earliest date in Field 01RCD.

    Exception:

    Use the latest date when the earliest date is before the end of the tax period.


    C] Is a renumbered non-remittance, Enter the calendar date of the Julian date in the original DLN minus 10 days.
    D] Is a renumbered remittance, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    E]≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Enter 20140415 in Field 01RCD.

  13. If a return was mailed to a state taxing agency on ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the received date in Field 01RCD.

3.12.3.4.3.20.1  (01-01-2014)
Post Office Marks

  1. Valid United States Postal Service (USPS), foreign country postmarks, USPS private meter marks, or private meter marks are:

    • Postage Validation Imprinter (PVI) labels displaying the USPS eagle

    • Killer bar strips or other cancellation marks with a date, city, and state

    • USPS Metered postmarks

    • Private Metered Marks (identified by the absence of "USPS" in the postmark).

3.12.3.4.3.20.2  (01-01-2014)
Private Delivery Service (PDS) Marks

  1. Designated Private Delivery Services (PDS) are in the following list:

    1. DHL Express (DHL)
      • DHL Same Day Service
      • DHL Next Day 10:30 am
      • DHL Next Day 12:00 pm
      • DHL Next Day 3:00 pm
      • DHL 2nd Day Service

    2. United Parcel Service (UPS)
      • UPS Next Day Air
      • UPS Next Day Air Saver
      • UPS Second Day Air
      • UPS Second Day Air A.M.
      • UPS Worldwide Express
      • UPS Worldwide Express Plus

    3. Federal Express (Fed Ex)
      • Fed Ex Priority Overnight
      • Fed Ex Standard Overnight
      • Fed Ex Two Day
      • Fed Ex International Priority
      • Fed Ex International First

      Note:

      Do not use "Fed Ex Powership 3" labels for determining the mail date.

  2. Do not use marks from a non-designated PDS to determine whether a return is timely filed. The "timely mailing as timely filing" rule applies only to the USPS and to designated PDSs.

3.12.3.4.3.20.3  (01-01-2014)
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  1. By law, a timely-mailed return is a timely-filed return. This applies to both USPS and designated PDS mail.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.3.4.3.21  (01-01-2014)
Field 01RPC Return Processing Code

  1. A Return Processing Code (RPC) is an alpha or numeric character entered by a Code and Edit examiner to alert the computer to a special condition or computation. The field is ten spaces long, and the number of RPCs may thus not exceed ten. These codes are used for Campus Processing and do not post to the Master File.

  2. RPCs are edited as follows:

    1. Form 1040: near the right of line 22.

    2. Form 1040A: near the right of line 15.

    3. Form 1040EZ: near the right of line 10.

  3. This field will be invalid as follows:

    1. Form 1040EZ (Doc Code 07, 08, or 28) and RPC is other than A, B, E, G, J, K, L, O, Q, R, V, or 8.

    2. Form 1040A (Doc Code 09 or 10) and RPC is other than A, B, C, D, E, G, I, J, K, L, N, O, Q, R,V, Z, 1, 7, or 8.

    3. Form 1040 (Doc Code 05, 06, 11, 12, 21, or 22) and RPC is other than A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P Q, R, S, T, U V, W, Y, Z, 1, 3, 4, 5, 6, 7, or 8.

  4. Take the following actions to correct Field 01RPC:

    1. Check for coding and transcription errors and correct, if needed.

    2. Determine and enter the correct RPC (if necessary). See Exhibit 3.12.3-5 for a list of explanations.

    3. Blank the field when the RPC is illegible and/or you cannot determine the correct RPC from the explanations in Exhibit 3.12.3-5.

  5. If the tax period is more than 33 months before the current processing month and year, then do the following:

    1. If the return has a Statute Control stamp, enter "K" in Field 01RPC if not present and continue processing the return.

    2. If the return does not have a Statute Control stamp, SSPND 310 to Statute Control for clearance.

      Note:

      Do not send returns to Statute Control for clearance if there is no money amounts present with an indication of SFR/6020(b), Secured by Exam/Collections, "Dummy Return" noted, or a "TC59X" is present on the return.

  6. When a Form 1040A/EZ is coded with RPC S and there is an indication that the return should be converted to Form 1040, SSPND 610. RPC S is used for Form 1040 only. Otherwise, delete the code.

  7. For TY98 and later, RPC V is edited by Code and Edit on current year Form 1040/A and not coded but entered in ISRP on Form 1040EZ, on forms determined to be computer generated. A computer generated return is one that is entirely designed and printed by the use of a computer printer, such as a laser printer, dot-matrix printer, etc. The bottom portion, (usually the center margin) of page 1 of the computer generated return contains a three character alpha code assigned by the IRS indicating approval of the form. RPC V is valid for all returns, but should only be present on Form 1040/A/EZ.

3.12.3.4.3.22  (01-01-2014)
01ACD Audit Codes

  1. Description. Audit codes are used to alert Examination to certain conditions in the return. Audit codes appear in the bottom-right margin of page 1 of the return and are edited by Code and Edit.

  2. Invalid Conditions. The valid values for the field appear below. Any other values are invalid.

    1. Form 1040 (doc code 11, 12, 21, 22): A, B, C, D, H, I, J, K, L, P, Q, R, S, T, U, V, W, X, and Z.

    2. Form 1040A (doc code 09, 10): B, D, H, K, L, P, R, U, V, and W.

    3. Form 1040EZ (doc code 07, 08): D, K , L, R, U, and X.

  3. Correction procedures. Compare the entry in the field with the entry in the lower right margin of page 1 of the return. Correct coding and transcription errors.

  4. If the audit code is illegible or incorrect, refer to Exhibit 3.12.3–7, Audit Codes, to determine the correct audit code.

  5. If you cannot determine the correct audit code, delete the code from Field 01ADC.

3.12.3.4.3.23  (01-01-2014)
Field 01PT Preparer TIN

  1. Description. The Preparer's TIN (P-TIN) Field is located in the preparer's section at the bottom of page 2 of Form 1040 and Form 1040A and at the bottom of page 1 of Form 1040EZ. The PTIN is a nine-character alpha-numeric code. The first character is "P" or "S" . The remaining eight characters are numbers.

  2. Invalid conditions. This field will be invalid if the preparer's TIN is present and it meets any of the these conditions:

    • is all zeros: 000000000

    • is all nines: 999999999

    • has fewer than nine characters

  3. Correction Procedures. Compare the entry in the field with the entry on the return and correct any errors. Correct the field errors below according to the instructions in the table.

    If then
    A] the PTIN/SSN is unavailable, incomplete, or illegible, delete the entry from Field 01PT.
    B] the PTIN is all zeros or all nines

3.12.3.4.3.24  (01-01-2014)
Field 01PE Preparer EIN

  1. Description — Preparer's EIN Field is located in the preparer portion at the bottom of page 2, Form 1040/A (or bottom of page 1, Form 1040EZ).

  2. Invalid Conditions — This field will appear invalid if the Preparer's EIN is present and any of the following exist:

    • Not numeric

    • All zeros (000000000)

    • All nines (999999999)

    • Fewer than nine digits

  3. Correction Procedures — Compare the field on the screen with the entry on the return and correct the screen display, if necessary. Delete the field when a valid Preparer's EIN is not available.

    Note:

    "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " .

3.12.3.5  (01-01-2014)
Section 02, Form 3471 (Edit Sheet)

  1. Section 02 contains edited information from Form 3471, Edit Sheet, for certain Unallowable (UA) conditions.

3.12.3.5.1  (01-01-2014)
Fields and Money Amounts

  1. All fields are positive. Money amounts are entered in dollars only.

3.12.3.5.2  (01-01-2014)
Error Record Format Section 02

  1. Section 02 holds the following fields:

    Screen name Field name Field Location (Form 3471)
    1040 1040A 1040EZ    
    02RI 02RI 02RI Revalidation Indicator ERS input only
    02PAV 02PAV 02PAV Primary Age Verified ERS input only
    02SAV 02SAV 02SAV Secondary Age Verified ERS Input Only
    02CEV 02CEV   Child Tax Credit Total Eligible Verified ERS Input Only
    02DTR 02DTR   Dependent TIN Requirement ERS Input Only
    02CD1 02CD1 02CD1 Unallowable Code-1 Line 1
    02AM1 02AM1 02AM1 Unallowable Amount-1 Line 1
    02CD2 02CD2   Unallowable Code-2 Line 2
    02AM2 02AM2   Unallowable Amount-2 Line 2
    02CD3 02CD3   Unallowable Code-3 Line 3
    02AM3 02AM3   Unallowable Amount-3 Line 3
    02AGI 02AGI 02AGI Unallowable AGI Near bottom of form, box labeled "AGI"
    02ITM     Unallowable Itemized Near bottom of form, box labeled "Itemized"
    02NI 02NI 02NI Unallowable Net Income Near bottom of form, box labeled "Net Income"
    02TXA 02TXA 02TXA Unallowable Tax Adjustment Near bottom of form, box labeled "TAX"
    02TXV 02TXV 02TXV Unallowable Tax-Verified Near bottom of form, box labeled "Tax Verified"
    02RPD 02RPD 02RPD Returns Processed Date Line 4
    0206 0206 0206 Late Filing Code Line 6
    02PDP 02PDP 02PDP Pre-Determined Delinquency Penalty Line 7
    0208     Form 4563 Indicator (International) Line 8 (for AUSPC only)
    0211 0211 0211 ID Number Penalty Line 11

3.12.3.5.3  (01-01-2014)
Field 02RI, Revalidation Indicator

  1. This field is for ERS input only and is used to retrieve information from the NAP file for NAP validation in ERS.

  2. The field is one space long.

  3. Valid values

    • blank: the default value

    • R (capital letter R): signifying the request for NAP validation

3.12.3.5.4  (01-01-2014)
Field 02PAV, Primary Age Verified

  1. This is an ERS input only field used when the primary taxpayer's age in Field 01PYB> is blank or all zeros.

  2. The field is three spaces long, and only numeric values are valid.

  3. Use of the field

    1. Enter R in field 02RI and transmit it.

    2. If the field 01PYB> remains blank or filled with zeros, look for the taxpayer's date of birth with INOLES.

    3. Determine the taxpayer's age on the first day of the tax year and enter it in field 02PAV.

3.12.3.5.5  (01-01-2014)
Field 02SAV, Secondary Age Verified

  1. This is an ERS input only field used when the secondary taxpayer's age in Field 01PYB> is blank or all zeros.

  2. The field is three spaces long, and only numeric values are valid.

  3. Use of the field

    1. Enter R in field 02RI and transmit it.

    2. If the field 01SYB> remains blank or filled with zeros, look for the taxpayer's date of birth with INOLES.

    3. Determine the taxpayer's age on the first day of the tax year and enter it in field 02PAV.

3.12.3.5.6  (01-01-2014)
Field 02CEV, Total Children Eligible for Child Tax Credit Verified

  1. This field is for ERS input only and is used only when the programming cannot accurately figure the total number of children eligible for Child Tax Credit, because, for instance, there are more than 4 eligible children or eligible children beyond the fourth transcribed dependent.

  2. The field is two spaces long, and only numeric values are valid.

  3. The entry in the field must be two spaces long. Enter any number smaller than 10 with a leading zero: 01, 03, 07, 09, for example.

  4. Correct field errors according to the table below.

    If Then
    A] the number of children eligible for the Child Tax Credit in field 01TCE> is correct Delete the figure in field 02CEV.
    B] the number of children eligible for the Child Tax Credit in field 01TCE> is incorrect
    1. Determine the correct number of children eligible for the Child Tax Credit.

    2. Enter the number of children eligible for the Child Tax Credit in field 02CEV.

3.12.3.5.7  (01-01-2014)
Field 02DTR, Dependent TIN Requirement

  1. The field for the Dependent TIN Requirement is for ERS input only. It overrides the programming requirement for the presence of a dependent TIN. ERS examiners enter a value for the number of dependents, up to four, who do not have a TIN for an acceptable reason. See EC 010 for acceptable exceptions to the requirement for a valid dependent TIN.

  2. The field is one space long, and only numeric values are valid.

  3. Valid values for this field and their significance

    • 0: the default value

    • 1: one dependent TIN missing for an acceptable reason

    • 2: two dependent TINs missing for an acceptable reason

    • 3: three dependent TINs missing for an acceptable reason

    • 4: four dependent TINs missing for an acceptable reason

3.12.3.5.8  (01-01-2014)
Unallowables

  1. There are certain conditions in a tax return that are unallowable by law and not merely questionable. These are identified by Unallowable (UA) Codes and edited by Code and Edit or Examination on Form 3471, Edit Sheet. An unallowable code allows the return to be processed as it was submitted. The fields for the amount of the uanllowable appear in dollars only. SSPND 370 to Exam when unallowable conditions without an assigned unallowable code.

    Note:

    Unallowable items should only be coded ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. These unallowable fields are edited by Code and Edit on Form 3471 for transcription:

    • Field 02CD1/02AM1

    • Field 02CD2/02AM2

    • Field 02CD3/02AM3

  3. These unallowable UA fields are for ERS input only :

    • Field 02AGI

    • Field 02ITM

    • Field 02NI

    • Field 02TXA

    • Field 02TXV

  4. Refer to the Unallowable Codes, Exhibit 3.12.3–8, for a list and explanation of the unallowable codes.

  5. Corrections are not necessary unless the record contains EC 370, 702, 704, 706, 708, 712, 714, or 718.

  6. Enter and correct unallowable codes according to the instructions below.

    1. Enter Unallowable Code 91 first.

    2. Enter all other codes as they appear in Form 3471 or the return.

    3. If there are more than three unallowable items in a return, enter unallowable code 98 as the third unallowable code, in field 02CD3, and leave field 02AM3 blank. Explain the additional codes and amounts in "Processing memo" in Form 3471.

  7. Before correcting an Unallowable Code, determine if the unallowable amount is more than the tolerance, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Use the following table to correct the Unallowable Code:

    If the amount is... And the UA is... Then...
    A] More than the tolerance,  
    1. GTSEC 02.

    2. Enter the UA codes. See Exhibit 3.12.3-8.

    3. Enter the UA amount.

    B] Less than the tolerance, In a field that is creating an ERS error condition, Move the amount to a catch-all field—move to field 0728 of Schedule A, for example. See the note below.

    Note:

    Do not adjust the return. Do not leave a working trail for the amount moved.

  8. Refer to EC 260 for conditions that should be coded with CCC Y.

3.12.3.5.8.1  (01-01-2014)
Field 02RPD, Return Processed Date

  1. The field Return Processed Date (RPD) is located on line 4 Form 3471 or stamped on the reply and is sometimes called the correspondence received date.

  2. Correct any coding and transcriptions errors.

  3. Correct any invalid format to the date YYYYMMDD. Y=year, M=month, and D=day.

  4. An entry in the field is invalid in any of these conditions.

    • The day of the month (DD) exceeds number of days for the transcribed calendar month (MM).

    • The first position of the field is blank and the rest of the field is filled.

    • The entry has fewer than eight characters.

    • The entry is not exclusively numeric.

    • The entry is later than the current date.

  5. When a return has been held in suspense and a complete reply is received after the due date of the return, enter the return processed date in Field 02RPD.

  6. When a return has been held in suspense and an incomplete reply is received, the correspondence is undeliverable, or the taxpayer doesn't reply, enter CCC U.

    Exception:

    If the taxpayer's response is incomplete because the IRS did not request all of the missing information, do not enter CCC U. Instead enter the reply date in Field 02RPD and process the missing information with the procedures for no reply.

  7. Do not enter the return processed date when

    • a complete reply is received before the due date of the return≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or

    • the correspondence was issued in error.

    Note:

    CCC U and the RPD must not both be present in the same return

  8. Austin only. If the return has an ITIN (9XX-70–XXXX through 9XX-88–XXXX, 9XX-90-XXXX through 9XX-92-XXXX, 9XX-94-XXXX through 9XX-99-XXXX) written in red ink and "W-7" is stamped in the bottom left hand corner of the return, resolve the error according to these instructions.

    1. If the received date is equal to the return processed date, ensure the correct received date is input. Refer to IRM 3.12.3.4.3.20.

    2. If EC 058 reappears, delete the entry in field 02RPD.

3.12.3.5.8.2  (01-01-2014)
Field 0206, Late-Filing Code

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for receiving certain tax returns. Code and Edit will edit the Late Filing Code 1 when the received date on ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the taxpayer has computed a delinquency penalty and/or interest. (Refer to EC 062.)

  2. The field will be invalid when other than blank or a 1.

  3. Correct coding and transcription errors and use the following table to correct the field error:

    The return is... And... Then...
    A] Full Paid, Any of the following is present:
    1. Pre-computed delinquency,

    2. Failure to Pay Penalty,

    3. Interest is entered on the return,


    1. Enter 1 in Field 0206.

    2. Enter 20140415 in Field 01RCD.

    B] Partial Paid, An amount is indicated for delinquency (Failure to File) penalty, Enter 1 in Field 0206.

3.12.3.5.8.3  (01-01-2014)
Field 02PDP, Pre-Determined Delinquency Penalty

  1. Code and Edit will edit the amount on the Edit Sheet when there is a notation on the return that indicates this penalty. (Refer to EC 064.)

  2. This field will be invalid if other than blank or all numerics.

  3. Correct any coding or transcription errors.

3.12.3.5.8.4  (01-01-2014)
Field 0208, Form 4563 Indicator (International)

  1. This field is used by AUSPC only.

  2. Delete entry if present in this field.

3.12.3.5.8.5  (01-01-2014)
Field 0211, Identification Number Penalty

  1. Identification Number Penalty Field has a maximum of 2 characters. When a notation is made on the return that indicates this penalty, Code and Edit will edit the designated amount using the following guidelines:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. This field will be invalid if other than blank or all numeric.

  3. Correct any editing or transcription errors. Enter the amount as two digits (i.e., $5.00 will be entered as 05) in Field 0211.

3.12.3.5.9  (01-01-2014)
Field 02NC> Non-Compute Code

  1. Description — The Non-Compute Code 2 is computer generated when the return is identified as a Non-Compute by the computer. Taxpayers who want the IRS to compute the tax will only complete the following lines:

    1. Form 1040 — Data through line 43, plus any applicable lines from line 47 through 54 and lines 62 through 72.

    2. Form 1040A — Data through line 27, plus any applicable lines 29 through 34 and lines 36 through 41.

  2. The taxpayers must not compute the Tax Liability, Balance Due/Refund, or have certain attached schedules for IRS to compute their tax.

    Exception:

    Section 01-05, 08, 16, 19, 21, 22, 23, 27, 29, 30, 36, 37, 43, 44, 45, 50, 51, 54, 55, and 63 may be present. Further rules for filing as a Non-Compute are explained in Publication 967.

  3. Field 02NC> will display with a 2 (identifying the return as a Non-Compute), for TY12 and later, when all of the following exist:

    1. Adjusted Gross Income is present and Total Tax Taxpayer, Amount Owed/Refund, Estimated Tax Payments, Estimated Tax Penalty and Remittance Amount are not present.

    2. Computer Condition Code B is not present.

    3. Taxpayer does not exceed tax table limitations for income.

    4. Only Sections 01–05, 08, 16, 19, 21, 22, 23, 27, 29, 30, 36, 37, 43, 44, 45, 50, 51, 54, 55, and 63 are present.

    5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. A return processed as a Non-Compute return generates a CP 51 notice to the taxpayer. The CP 51 informs the taxpayer that the IRS figured their tax for them.

  5. Error Codes in the 500 and 600 series will also be generated on all Non-Compute returns.

  6. Correction Procedures — Determine from the return if the Tax and/or Balance Due/Refund has been computed to zero by the taxpayer, or if the taxpayer is asking IRS to figure the tax. A dash (-), a 0 (zero), or "none" written on any of the lines is an indication the taxpayer computed their own return.

  7. When you can determine that the taxpayer has computed their return, enter B in Field 01CCC. A CCC B prevents the return from being identified as a Non-Compute. This practice is recommended because of the current amount of unnecessary CP 51 notices that are generated.

    Note:

    If the taxpayer has computed the tax to zero, has entered withholding and has no subsequent entries (i.e., taxpayer is not asking IRS to figure EIC) and does not have an entry on line 72, enter the withholding amount in 05BDR (Do not enter CCC B).

  8. Correct all field errors when the return is identified as a true Non-Compute and the taxpayer has done all the following:

    • Completed all applicable lines through Taxable Income.

    • Entered any withholding.

    • Entered any applicable lines thereafter (except the total lines).

    • Wrote "CFE" , if applicable, on the dotted line next to the line for Credit for the Elderly or the Disabled and attached the schedule with the appropriate lines completed.

    • Wrote "EIC" if applicable to the left of the Earned Income Credit line and attached the schedule (if necessary) with the appropriate lines completed.

  9. Assign TPNC 218 when a return appears to be a Non-Compute, but does not meet the criteria (e.g., "prior-year return" , Schedule A present, Schedule C present, etc.). Field 02NC> will be blank.

  10. Verify the coding and transcription on all the fields in the following table. Take the appropriate action listed in the table, when necessary, before transmitting the record:

    Verify Field(s).... And... Then...
    01FSC The taxpayer failed to check or checked multiple boxes for the FS, SSPND 211
    01EXC You are unable to arrive at the taxpayer's total for exemptions, SSPND 211
    04ABI You are unable to arrive at the taxpayer's total for Age/Blind deduction(s), Refer to EC 252.
    01DSI You are unable to determine if the taxpayer is limiting the Standard Deduction or Exemption amount, Refer to EC 252.
    Section 03 Verification of wages, from Form W-2(s), shows the amount of wages is greater than the amount reported on the return by $10 or more, Increase the wages amount. (Do nothing if amount is less than what is reported on the return.)
    Section 03 The taxpayer used SSA/Medicare Wages instead of Withholding Wages, Change the amount to reflect the Withholding Wages.
    Section 03 a. EIC is claimed based solely on wages that are not supported by a Form W-2 (or similar Form W-2 document), or
    b. HSH is not noted on the wage line,
    1. Research CC IRPTR, if available.

    2. SSPND 211 for documentation.

    Section 03 Gross Social Security is being claimed,
    1. Research CC IRPTR, if available.

    2. Verify and correct the amount, if applicable.


    Field 0562 (1040), or
    Field 0536 (1040A), or
    Field 0507 (1040EZ),
    1. Withholding is claimed,
    2. Supported by only a substitute, typed or handwritten Form W-2
    3. The computer computes a refund,
    Enter 8 in Field 01CCC.

    Note:

    Always verify the Withholding amount from Form W-2(s) and ensure that the amount was transcribed correctly before transmitting the error record.

    Field 04AEI, TY10 and prior, Form W-2 reflects AEIC in box 9, Enter the box 9 amount in Field 04AEI.

  11. Refer to EC 260 for information on joint Non-Compute returns. Computer Condition Code "Y" will be assigned when both of the following are present:

    1. The separate taxable incomes of the husband and wife are shown above the words "Adjusted Gross Income" , on Form 1040 (to the left of line 27 on Form 1040A or to the left of line 6 on Form 1040EZ).

    2. There are no exemptions in positions 3 through 8, or the taxpayer has indicated the allocation of the exemptions to the husband and/or wife.

3.12.3.6  (01-01-2014)
Section 03, Income And Adjustments

  1. Section 03 includes the following information:

    • Income

    • Adjustment items

  2. Entries are used to calculate the Adjusted Gross Income for Form 1040, Form 1040A and Form 1040EZ.

3.12.3.6.1  (01-01-2014)
Fields and Money Amounts

  1. All fields are positive, with the exception of the following list, that can be positive or negative:

    • Taxable Interest

    • Schedule C, D, E, F

    • Form 4797

    • Other Income

    • Adjusted Gross Income

3.12.3.6.2  (01-01-2014)
Error Record Format Section 03

  1. Section 03 consists of the following fields:

    Field Designators
    1040 1040A 1040EZ Field name Field Location
    0307 0307 0301 Wages Line 7 (1040)
    Line 7 (1040A)
    Line 1 (1040EZ)
    0308A 0308A 0302 Taxable Interest Line 8a (1040)
    Line 8a (1040A)
    Line 2 (1040EZ)
    0308B 0308B 03TEI Tax-Exempt Interest Line 8b (1040)
    Line 8b (1040A)
    Line 2 (dotted portion to the left 1040EZ, ERS Input Only)
    0309A 0309A   Ordinary Dividends Line 9a (1040)
    Line 9a (1040A)
    0309B 0309B   Qualified Dividends Line 9b (1040)
    Line 9b (1040A)
    0310     State Income Tax Refund Line 10 (1040)
    0311     Alimony Received Line 11 (1040)
    0312     Combined Schedule C Profit/Loss Line 12 (1040)
      0310   Total Capital Gain Distribution Line 10 (1040A)
    0313     Schedule D Profit/Loss Line 13 (1040)
    0314     Other Gains/Losses Line 14 (1040)
    0315A 0311A   Total IRA Distribution Line 15a (1040)
    Line 11a (1040A)
    0315B 0311B   Taxable IRA Distribution Line 15b (1040)
    Line 11b (1040A)
    0316A 0312A 03GPA Total Pensions and Annuities Line 16a (1040)
    Line 12a (1040A)
    ERS Input Only (1040EZ)
    0316B 0312B 03TPA Taxable Pensions and Annuities Line 16b (1040)
    Line 12b (1040A)
    ERS Input Only (1040EZ)
    0317     Schedule E Profit/loss Line 17 (1040)
    0318     Combined Schedule F Profit/Loss Line 18 (1040)
    0319 0313 0303 Taxable Unemployment Compensation Line 19 (1040)
    Line 13 (1040A)
    Line 3 (1040EZ)
    0320A 0314A   Gross Social Security Line 20a (1040)
    Line 14a (1040A)
    0320B 0314B   Taxable Social Security Line 20b (1040)
    Line 14b (1040A)
    0320V 03TSV   Taxable Social Security Verified ERS Input Only
    0321 03OTI   Other Income Line 21 (1040)
    ERS Input Only (1040A)
    0322 0315 03TOT Total Income Line 22 (1040)
    Line 15 (1040A)
    Line 4 (1040EZ)
    0323 0316   Educator Expenses Line 23 (1040)
    Line 16 (1040A)
    0324     Reservist/Other Business Expenses Line 24 (1040)
    0325     Health Saving Account Deduction Line 25 (1040)
    0326     Moving Expenses Line 26 (1040)
    0327     Deduction for Self-Employment Tax Line 27 (1040)
    0328     SE Retirement Plans Deduction Line 28(1040)
    0329     Self Employed Health Insurance Line 29 (1040)
    0330     Penalty on Saving Withdrawal Line 30 (1040)
    03SSN     Alimony SSN Line 31b (1040)
    0331A     Alimony Paid Line 31a (1040)
    0332 0317   IRA Deduction Line 32 (1040)
    Line 17 (1040A)
    0333 0318   Student Loan Interest Deduction Line 33 (1040)
    Line 18 (1040A)
    0334 0319   Tuition and Fees Deduction Line 34 (1040)
    Line 19 (1040A)
    03JDP     Jury Duty Pay Included in the total of line 36 (Form 1040)
    0335     Domestic Production Activities Deduction Line 35 (1040)
    03MSA     Archer MSA Deduction Line 36 (beside the entry on line 36 of 1040)
    03ADJ     Other Adjustments Line 36 (beside the entry on line 36 of 1040)
    0336 0320   Total Adjustments Line 36 (1040)
    Line 20 (1040A)
    0337 0321 0304 Adjusted Gross Income Line 37 (1040)
    Line 21 (1040A)
    Line 4 (1040EZ)
    03RTA 03RTA 03RTA Form 982 Indicator Edited in the left margin of Form 1040/1040A/1040EZ across from line 23/16/4

3.12.3.6.3  (01-01-2014)
Invalid Conditions

  1. Fields are invalid if not all numeric.

    Exception:

    See Alimony SSN Field for specific invalid conditions for that field only.

3.12.3.6.4  (01-01-2014)
Correction Procedures

  1. Correction procedures for Section 03 fields follow.

3.12.3.6.4.1  (01-01-2014)
Field 0307 and 0301, Wages

  1. Verify the wages with CC IRPTR if the information returns are available. SSPND 211 for Form W–2 when the taxpayer does not provide at least one Form W–2 or a similar statement of earnings. Refer to EC 218.

  2. If the taxpayer reports earnings from household employment on line 7 of Form 1040 or Form 1040A or line 1 of Form 1040EZ enter SPC E in Field 01SPC.

    Note:

    Household employees may not have Forms W–2 to support their entry for wages. They are instructed to write "HSH" and the amount of earnings to the left of the entry for wages. Consider this the equivalent of a Form W-2.

3.12.3.6.4.2  (01-01-2014)
Field 0308A and 0302, Taxable Interest

  1. SSPND 610/611 to convert to Form 1040 when a negative amount is claimed as taxable interest on Form 1040EZ. Beginning in TY97, negative taxable interest amounts stemming from inflation-indexed bonds may be claimed on line 8a, Form 1040/A. (Refer to EC 218.)

3.12.3.6.4.3  (01-01-2014)
Field 0308B and 03TEI, Tax-Exempt Interest

  1. Accept the taxpayer's entry. (Refer to Error Code 218.)

3.12.3.6.4.4  (01-01-2014)
Field 0309A, Ordinary Dividends

  1. Dividends and distributions are reported to the taxpayer on Form 1099–DIV. The taxpayer should enter the total of ordinary dividends from Box 1a of Form 1099–DIV on line 9a of Form 1040/A. Taxpayers are not required to attach Form 1099–DIV to their return. (Refer to EC 218.)

3.12.3.6.4.5  (01-01-2014)
Field 0309B, Qualified Dividends

  1. Dividends and distributions are reported to the taxpayer on Form 1099–DIV. The taxpayer should enter the total of qualified dividends from box 1b of Form 1099–DIV on line 9b of Form 1040/A. Taxpayers are not required to attach Form 1099–DIV to their return. (Refer to EC 218.)

3.12.3.6.4.6  (01-01-2014)
Field 0310, State Income Tax Refund (Form 1040)

  1. Refer to EC 218.

3.12.3.6.4.7  (01-01-2014)
Field 0311, Alimony Received (Form 1040)

  1. Correction Procedure — ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (Refer to EC 218.)


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