Accessibility Skip to Top Navigation Skip to Main Content Home  |  Change Text Size  |  Contact IRS  |  About IRS  |  Site Map  |  Español  |  Help  

Part 3. Submission Processing

Chapter 12. Error Resolution

Section 8. Information Returns Processing

3.12.8  Information Returns Processing

3.12.8.1  (01-01-2010)
Purpose

  1. These instructions cover the correction of error registers for the following information returns processed via ISRP and SCRIPS:

    • Forms in the 1099 series

    • Forms in the 1098 series

    • Foreign Information Returns

    • Forms 5498 series

    • Forms 8487

    • Forms W–2G, Certain Gambling Winnings

  2. These instructions also cover the correction of Forms 1096, Annual Summary and Transmittal of U. S. Information Returns (including delinquent tax years) processed to the Payer Master File.

  3. General instructions found in IRM 3.12.37, IMF SC Error Resolution Systems will be used as a basis when using this IRM.

3.12.8.1.1  (01-01-2010)
Scope

  1. These instructions apply to all Campuses

3.12.8.1.2  (01-01-2010)
Returns Files

  1. Return storage and retrieval for correcting the IRP Error Register will be performed in the same manner as for other Error Registers as prescribed in IRM 3.12.37.

3.12.8.1.3  (01-01-2010)
Domestic and Foreign Returns

  1. For Code and Edit instructions for domestic and foreign information returns, see IRM 3.11.8, Information Return Processing.

3.12.8.1.4  (01-01-2010)
Error Register Format

  1. Exhibit 3.12.8–3 displays the format of the IRP SCRS Error Register and the corresponding definitions. Review the exhibit for location of items on the error register.

3.12.8.1.5  (01-01-2010)
Program Codes

  1. Listed below are the program codes as they will appear on the Error Register:

    Return Types Program Codes
    ISRP ENTERED FORMS (DOMESTIC) 1099–A, 1099–B, 1099–C, 1099-CAP, 1099–DIV, 1099–G, 1099-H, 1099–INT, 1099–LTC, 1099–MISC, 1099–SA, 1099–OID, 1099–PATR, 1099–Q, 1099–R, 1099–S, 1098, 5498, W–2G, 5498–SA, 5498-ESA, 1098-C, 1098–E, and 1098–T 4430X
    ISRP ENTERED FORMS (DOMESTIC) 1096 44310
    FOREIGN INFORMATION RETURNS 44320
    SCRIPS 1096, 1099 (Series), 5498 (Series), 1098 (Series) 44340
    FORM 8487 44620

3.12.8.1.6  (01-01-2010)
IRP Error Reasons Codes

  1. If an Error Reason Code appears, it will be printed in the return header line.

  2. These codes are used as a guide for correcting the error record, however, there may be errors other than the one(s) identified by the Error Reason Code.

  3. Error Reason Codes 11, 14, 15, 16, 17, 18, 19 and AA are valid on IRP Error Registers.

  4. Error Reason Code 11 indicates one of the following error conditions:

    1. The zip code is inconsistent with the state.

    2. The zip code is present for a document which contains a period (.) in the state code field. The period (.) will only appear for foreign addresses.

    3. If a document has a state with a major city code, it will appear with error reason code 11; clear this by deleting the state.

  5. Error Reason Code 14 indicates one of the following error conditions:

    1. The return has an account type code T or J (foreign information returns) and does not have a Foreign Country Code.

    2. The return has an account type code other than T or J and a Foreign Country Code is present.

  6. Error Reason Code 15 indicates the tax class, document code, and file location code of the Payer Document Locator Number (DLN) is not valid for the document being processed.

  7. Error Reason Code 16 indicates inconsistencies involving money fields on the following returns: Forms 1099–DIV, Form 1099–R and Form W–2.

  8. Error Reason Code 17 indicates an error detected by ISRP. When this happens, an error indicator code should be present next to one or more of the section numbers. The entire document must be reviewed for errors.

  9. Error Reason Code AA indicates that an invalid correction attempt was made. See IRM 3.12.8.1.8 for invalid correction attempts.

  10. Error Reason Code 18 indicates a possible fraudulent Form 1099–MISC or Form 1096. Follow local procedures for coordination with the Criminal Investigation Branch (CIB). Follow this procedure before resolving any other error condition(s). CIB will indicate, after review, whether to continue or discontinue processing. Use Action Code 7 to continue processing, or Action Code 2 with SCCF adjustment indicator D to discontinue processing.

  11. Error Reason Code 19 indicates a possible fraudulent Form 1099–MISC. Follow local procedures for coordination with the Criminal Investigation Branch (CIB). Follow this procedure before resolving any other error condition(s). CIB will indicate, after review, whether to continue or discontinue processing. Use Action Code 7 to continue processing, or Action Code 2 with SCCF adjustment indicator D to discontinue processing.

3.12.8.1.7  (01-01-2010)
IRP Action Codes

  1. At least one action code must be entered on the error register to correct an error item.

  2. Action Code 2, 6, and 7 are valid for IRP Error Registers.

  3. Action Code 2

    1. Enter this code to the left of Section 01 to delete an entire return.

    2. See IRM 3.12.8.1.10 for details on deleting returns from the error register.

    3. Do not use Action Code 2 with any other action code.

    4. Action Code 2 must always be followed by a SCCF adjustment indicator of D, N or R.

  4. Action Code 6

    1. Use to change data field(s) in a section. Enter to the left of the appropriate Section(s).

    2. This code is valid for all sections.

    3. The code is required for each section where fields are being corrected.

    4. When this code is used, at least one field within the section must be changed by lining through the incorrect field(s) and entering the correct data above the lined-out field(s).

  5. Action Code 7

    1. Enter this code to the left of Section 01 to indicate data on the Error Register is correct.

    2. This code is also used to bypass certain validity and consistency checks.

    3. Do not use Action Code 7 with any other action code.

    4. Do not use Action Code 7 when %% appears in the document identification line. If used, all remaining documents in that block will continue to loop on the register until each document is corrected individually.

3.12.8.1.8  (01-01-2010)
Error Indicators

  1. Each invalid section on the error register may be preceded by one of the following error indicators:

    Error Indicator Condition
    #1—ISRP Error
    #2—Section Length Error     		1. Section's required fields are not all present; or
    2. Section's has more than the allowable field(s) for that section.
    #4—Field Length Error 1. The field is variable and too many characters are present.
    2. The field is fixed and too few characters are present.
    3. A non-numeric character is in the unit position of a right justified field.
    4. Non-numeric data in a money field.
    5. Frequently, error indicator #4 will be assigned to more than one section even though not all sections contain an error. When this occurs, all sections in error should be corrected with Action Code 6. The error indicator #4 for any section, which is correct as is, cannot be removed on the first correction attempt. Therefore, the document will loop on the error register. When it loops, clear the document from the error register with Action code 7, unless there is some other error that was not corrected previously. It is not necessary to reverify that the remaining section with error indicator #4 is correct, because this was done on the first correction attempt.
    #G—Required Section Not Input  
    #5—Duplicate sections entered or entered out of order  

  2. As an alternative to allowing the register to loop, a dummy correction may be used. Example : If error indicator #4 appears before both Sections 01 and 02, but only Section 01 contains an error, use Action Code 6 to correct section 01.

    Note:

    (Do not do this on parent documents, Forms 1096 or 8487.)

  3. Enter a hyphen in Section 02, Field A (Payer Account Number for Payee) if the field is blank or re-enter the original entry if one is present and using an Action Code 6. This will force a dummy correction to Section 02.

    Note:

    Do not do this on parent documents. Forms 1096 or 8487.

3.12.8.1.9  (01-01-2010)
Account Type Code

  1. Information returns are input to ISRP for various purposes. In order to allow for the special validity checks necessary to distinguish between these purposes an "Account Type Code" is present in the Block Header Record.

  2. The Account Type Code (ATC) will appear on the Error Register in the block identification line. It is transcribed from the Transaction Code box on Form 1332 (or on Form 3893).

  3. The Account Type Codes:

    B The Form 1096 was prepared and submitted by the payer.
    C The Form 1096 or Form 8487, is a "Dummy" prepared by IRS because the payer did not submit a Form 1096. Forms 8487 are prepared by IRS and should use only ATC "C" , and ATC "B" will be accepted.
    J Electronically filed returns from a Foreign Treaty Country.
    P The block of returns is from a Domestic Payer(s), and was processed by the Integrated Submission and Remittance Processing System (ISRP).
    T Paper filed returns from a Foreign Treaty Country Payer(s), for Individual Master File (IMF) type payees, and processable in ISRP.
    M Indicates the return was processed through SCRIPS and reinput through ISRP.
    S A return processed through SCRIPS.
    Z This code is reserved.

3.12.8.1.10  (01-01-2010)
Deleting Error Records

  1. In general a return will only be deleted from the Error Tape for one of the following reasons:

    Error Record Conditions
    Duplicate DLNs were assigned 1. If duplicate DLNs were assigned delete one of the documents and return it to Receipt & Control to be renumbered and reinput.
    2. Use Action Code 2, Error/Reject Disposition Code D to delete the return from the error tape.
    Return was misblocked (e.g., a Form 1099–INT was blocked with Form 1099–DIV) 1. If a return was misblocked it should be "reinput" . Prepare Form 4227 according to normal procedures. Indicate on the Form 4227 "Reinput" and attach to the return. A return coded for re-input because it was misblocked must be re-numbered and re-blocked prior to re-input.
    2. Use Action Code 2, Error/Reject Disposition Code N to delete the return from the Error Tape.
    The return should never have been selected for this tax year's information returns program. Although there are no validity checks to ensure that a return meets the selection criteria, Error Resolution can delete a return if they determine it does not meet the selection criteria as specified in IRM 3.10.8. 1. If a return does not meet the selection criteria, it should be deleted. Prepare Form 4227 according to normal procedures. Indicate "Delete" on the Form 4227 and attach to the return being deleted.
    2. Use Action Code 2, Error/Reject Disposition Code D to delete the return from the Error Tape.

  2. When Forms 1096, Forms 1099–R, and Forms W–2G are deleted they must be re-input (with Form 3893) using the same DLN originally assigned, unless the return was originally assigned an incorrect DLN. Use Action Code 2, Error/Reject Disposition Code R to delete a Form 1096, Form 1099–R, or Form W–2G and reinput it using the same DLN.

  3. In certain cases it may be advantageous to delete returns and reinput them even though they are not misblocked and they meet the selection criteria. To do this, use Action Code 2, Error/Reject Disposition Code R. In these cases the returns my be re-input without being re-numbered and re-blocked. Prepare Form 3893, and attach to the return(s). In addition, place the Account Type Code, Amended Doc Code (F or G), and Payer Count in "Trans Code " Box. For every return attached to the Form 3893 at which the payer data changes, edit the 14 digit Payer DLN ( except foreign returns) payer Name and TIN (also Foreign Country Code for foreign returns), according to instructions in IRM 3.12.8.3.13. Edit the Payer's address according to instructions in IRM 3.12.8.3.7. Do not edit the Payer's address if it is foreign. Account Type Code S will be notated as M on Form 3893 for reinput through ISRP.

  4. When deleting returns, an Error/Reject Disposition Code must also be present. This code will automatically adjust the Service Center Control File (SCCF). Use one of the following codes (as appropriate):

    "D" —Delete; use when a document will not be re-input or when the DLN is unknown. (Cannot be used for Form 1096, Form 1099–R, or W–2G)
    "R" —Reinput; use when a document is being deleted that will be re-input using the same DLN.
    "N" —Renumber; use when a document is being deleted that will be re-input using a different DLN. 1. Whenever Error/Reject Disposition Code N is used, the return must be renumbered and the new DLN must also be coded on the error register.
    2. Place the new DLN above the original DLN in the document ID line. Cross out the original DLN.
    3. If the document is being renumbered outside of ISRP, also enter one of the following master file codes:
        IMF - Individual Master File
    BMF - Business Master File
    EPMF - Employee Plans Master File
    IRAF - Individual Retirement Account File
    NMF - Non master file

  5. Do not code a new DLN when using Error/Reject Disposition Codes D or R. Enter the MFT Code and Error/Reject Disposition Code R on Form 3893 when reinputting a return with the same DLN. If the MFT needs to be changed, it is probably necessary to renumber the document in which case Error/Reject Disposition Code N must be used. If the Account Type Code needs to be changed use Error/Reject Disposition Code R.

  6. The Error/Reject Disposition Code must appear immediately to the right of Action Code 2.

  7. Make sure to notate the Error/Reject Disposition Code in the remarks section on Forms 4227 and 1332 or 3893.

  8. When deleting a return for reinput, make sure the 14 digit Payer DLN (except Foreign returns), payer Name, Payer address (except for foreign returns), and TIN (also Foreign Country Code for foreign returns) are edited.

  9. When corrections are run against the error file, an Error Deletion List is produced to show all documents which were deleted by using Action Code 2.

  10. Do not release any deleted document to Receipt & Control for DLN renumbering and reinput until it appears on the Error Deletion List, SCR–11–45.

  11. After verifying that a deleted document is on the Error Deletion List, release the document as follows:

    1. For documents deleted with Error/Reject Disposition Code D, dispose of the documents according to IRM 1.15.29, Records Control Schedule for Service Center Operations, unless such documents need to be reinput and the D was used because a new DLN is not known.

    2. For documents deleted with Error/Reject Disposition Code R have the documents reinput using Form 3893.

  12. If any discrepancies are identified through the Error Deletion List (e.g. return renumbered incorrectly, return coded with Error/Reject Disposition code D is reinput, etc.) contact the Balancing function to resolve the discrepancy.

  13. The Error Deletion List should be filed in the Error Resolution function.

3.12.8.1.11  (01-01-2010)
Error Register Field Breakers

  1. IRP error registers will display plus and minus field breakers.

  2. Field breakers will be coded only in Section 06 and only then if they need changing.

    1. Use a comma (,) for plus.

    2. Use a pound sign (#) for minus.

3.12.8.1.12  (01-01-2010)
Invalid Correction Attempts

  1. Each correction made on the error register is subject to computer validity checks. If the correction does not pass these validity checks, it will reappear on the error register with error reason code AA.

  2. Action codes other than 2, 6 or 7 are invalid correction attempts for IRP.

3.12.8.1.13  (01-01-2010)
Action Code 2

  1. Is an invalid correction attempt when, used with any other action code.

  2. Is an invalid correction attempt when, not immediately followed by Error/Reject Disposition Code R, N or D.

  3. Is an invalid correction attempt when, the correction record contains any section other than section 01.

  4. Is an invalid correction attempt when, it is immediately followed by Error/Reject Disposition Code R or D and there is non-blank data in the correction record.

  5. Is an invalid correction attempt when, it is immediately followed by Error/Reject Disposition Code N and

    1. A valid new DLN is not present for the correction record;

    2. A new valid block header MFT is not present for Forms 1096, 8487, and blank (i.e. shown as a circled 2) for all other forms.

    3. The new account type code (if present) is not alphabetic.

3.12.8.1.14  (01-01-2010)
Action Code 6

  1. Is an invalid correction attempt when, used with any other action code except another 6.

  2. Is an invalid correction attempt when, the section number of the correction Section is other than 01, 02, 06 or 16 for all IRP documents except for Forms 1096 and 8487.

  3. Is an invalid correction attempt when, the section number of the section being corrected is other than 01, 02 or 06 for Forms 1096 and 8487.

  4. Is an invalid correction attempt when, used to correct more than one section and the section numbers are not in ascending order.

  5. Is an invalid correction attempt when, it is not immediately followed by an alpha field designator valid for the section being corrected.

  6. Is an invalid correction attempt when, the alpha field designators within the correction section are not in alphabetic sequence.

  7. Is an invalid correction attempt when, used to change a field that is not on the error tape.

  8. Is an invalid correction attempt when, the correction section contains invalid field breakers or fields that are too large.

  9. Is an invalid correction attempt when, the correction section does not contain at least one field breaker.

  10. Is an invalid correction attempt when, two identical sections numbers are present within a correction record and both sections do not contain action code 6.

3.12.8.1.15  (01-01-2010)
Action Code 7

  1. Is an invalid correction attempt when, used with any other action code.

  2. Is an invalid correction attempt when, the correction record contains anything other than the error sequence number, section number 01 and action code 7.

3.12.8.1.16  (01-01-2010)
Delinquent Transmittals

  1. All Forms 1096 must be processed to the Payer Master File regardless of when received. For processing year 2010, tax year 2007 through 2009 Forms 1096 will be processed. Such returns should be in separate blocks and the tax year in the block header should match the Tax Year on the transmittals.

3.12.8.2  (01-01-2010)
Section 01 Error Register

  1. Section 01 of the Error Register contains payee entity data and Form 1096 and Form 8487 payer entity data.

  2. Listed below are the fields contained in Section 01:

    1. Field A, TIN length 9

    2. Field B, TIN Validity Bypass Indicator, length 1

    3. Field C, Name Control, length 4

    4. Field D, Name-Line-1, length 40

    5. Field E, Name-Line 2, length 40

    6. Field F, Street Address, length 35

    7. Field G, City, length 22

    8. Field H, State, length 2

    9. Field I, Zip Code, length 9

  3. To blank a field in Section 01, line through the incorrect data.

3.12.8.2.1  (01-01-2010)
Section 01, Field A, TIN

  1. There is no validity check of this field except for Forms 1096. However, if you notice that the field was transcribed in error, correct it on the error register by lining through the incorrect TIN and entering the correct TIN above it. Payer documents must have a TIN.

  2. A no-TIN return is one for which the TIN contains other than nine numerics.

  3. Forms 1096 follow the rules for Section 16, Payer TIN (See IRM 3.12.8.5.7). Make necessary corrections to Section 01, Field A, Forms 1096 using the Section 16 rules.

3.12.8.2.2  (01-01-2010)
Section 01, Field B, TIN Validity Bypass Code

  1. This field is always blank.

3.12.8.2.3  (01-01-2010)
Section 01, Field C, Name Control (4 Positions)

  1. The Name Control is generated from the first four significant characters in Name Line-1. The requirements of a Name Control are:

    1. It must contain either an alpha or numeric in the first position,

    2. The hyphen and ampersand (&) are the only special characters and may only appear in the second, third, or fourth position,

    3. It may be a single alpha or numeric,

    4. It may be blank in the fourth position,

    5. If blank in the third position, the fourth position must be blank. If blank in the second position, the third and fourth positions must both be blank.

    6. Ampersands and numerics are not allowed on Forms W–2.

  2. If a name control is invalid or has been generated improperly, make any corrections that are necessary to the Name-Line 1 in order to have the correct name control generated by the computer. Never make a change to Field "C" itself.

3.12.8.2.4  (01-01-2010)
Section 01, Field D, Name-Line 1

  1. The Name-Line 1, Payee (Payer for Forms 1096 and 8487) may not be all blanks. The valid characters are alpha, hyphen, blank, numeric and ampersand.

  2. If the first name line is invalid, line through the invalid name and enter the correct name above.

  3. If two or more payee names appear on an information return, the names as they appear can be entered into the Name-Line 1. Other names can be identified for entry into the Name-Line 2.

  4. If the Name Control (field C) is blank, but the Name-Line 1 is not, then a correction to the Name-Line 1 is probably necessary. After re-input of the Name-Line 1, the Name Control will be re-generated. If no name can be found after research using the SSN, delete the document (except Forms W–2G and Forms 1099–R) according to instructions in IRM 3.12.8.1.10. For Forms W–2G and Forms 1099–R, edit "Unknown" to Name-Line 1.

  5. Do not enter a caret for any documents.

  6. Instructions for editing the first Name Line will be found in IRM 3.11.8.

3.12.8.2.5  (01-01-2010)
Section 01, Field E, Name-Line 2 (Foreign Street Address)

  1. There is no validity check of this field unless the field contains a foreign street address. However, this field will be corrected if it is noticed that it was originally transcribed in error.

  2. If the Name-Line 2 was originally transcribed in error, line through the erroneous name and enter the correct name above it.

  3. Check instructions for Name-Line 2 in IRM 3.11.8 before any corrections are made.

  4. For Forms 1096 and 8487 a second name line (payer) can be present. If present, do not delete the second name line. See IRM 3.11.8 for details.

  5. If the payee address is foreign, the street address (if present) will be coded in the Name-Line 2 field. Foreign addresses can be identified by a period (.) in the first position of the state field.

3.12.8.2.6  (01-01-2010)
Section 01, Field F, Street Address (Foreign City Or Province)

  1. This field is validity/consistency checked for all documents. The valid characters for this field are Alpha (A–Z), Numeric (0–9), hyphen (-), blank ( ), and slash (/).

  2. If you notice that the street is missing or incorrect, necessary corrections can be made for all documents.

  3. If the street address is not present on the document, enter the single character "Z" as the street address.

  4. Use standard abbreviations shown in IRM 3.11.8 and Exhibit 3.12.8–8 whenever possible for the street address.

  5. If the payee address is foreign, the foreign city or province and the postal code will be entered in the Street-Address Field. Abbreviations should be used to limit this entry to 25 positions.

3.12.8.2.7  (01-01-2010)
Section 01, Field G, City (Foreign Country)

  1. For all documents, if the City is present it must be alpha only. If the city for a domestic address contains numerics, it must be corrected to alphas. For example, "29 Palms" must be corrected to "Twenty nine Palms."

  2. APO and FPO are edited to the first three positions of the city:

    1. If present, no other city information is allowed in this field.

    2. If present, the state code and zip code must match the military state and zip codes shown in Exhibit 3.12.8–12.

  3. Major city codes may be used:

    1. If the city is a valid MCC, enter the Zip Code from Exhibit 3.12.8–5 or Exhibit 3.12.8–6 .

    2. If the city is not a valid MCC enter the city and state.

  4. If the payee address is foreign:

    1. Edit the foreign country in the city-field.

    2. Follow instructions in IRM 3.24.37, General Instructions, for entry of Foreign Returns.

    3. Do not enter a foreign country code. Use abbreviations as necessary to limit this entry to no more than 15 positions.

  5. If city cannot be determined, enter three Zs (e.g. ZZZ).

3.12.8.2.8  (01-01-2010)
Section 01, Field H, State (Foreign Period)

  1. If the State is present and a ZIP Code is also present, the Zip Code must be valid for the State. Both will appear as fields in error when the state code is a valid code but the ZIP is not valid for the State.

  2. If the State is present, it must be in the valid range of the State codes. If the state is not valid, the Zip Code will not be identified as a field in error (unless it is not a valid Zip configuration). Always check the Zip Code field when the State field must be corrected. Do not assume the Zip is correct.

  3. If a correct State cannot be determined. Field I must be blank. Make necessary corrections to the appropriate fields (H, and/or I).

  4. If the address is foreign (including American Samoa and Panama Canal Zone), edit a period (.) in the first position of the State Field.

  5. Make necessary corrections to Field H on the Error Register when the State is in error unless another correction action will correct the Field H problem.

  6. If both a major city code and a state code are present, both fields will be error coded. Correct by deleting the state if a valid major city code is present.

  7. If the state code is "AA" , "AE" or "AP" , use the military city, state and zip codes shown in Exhibit 3.12.8–9 to determine a valid city and zip code.

3.12.8.2.9  (01-01-2010)
Section 01, Field 1, Zip Code

  1. The Zip Code must:

    1. Be numeric,

    2. Be 5 or 9 numerics.

    3. Be valid for the State. The first three digits must be in the valid range of Zip Codes for the State followed by two numerics other than 00. If only three numerics are shown, add 01 to the field.

    4. Not contain embedded blanks.

    5. Be left justified.

  2. If the Zip code is in error and can be determined from the State see Exhibit 3.12.8–7, correct Field 1 by entering the first 3-digit Zip Code shown for the state followed by the numerics 01.

  3. If the Zip Code cannot be determined, proceed as follows: Blank out field I, Zip Code and Field H, State.

  4. When a major city code (MCC) is present on payee documents, the zip code should not be blank. If blank, enter a 3-digit Zip Code shown for the MCC followed by the numerics 01.

  5. If the address is foreign, the Zip Code field should be blank.

  6. The Zip code should always be verified for a State, even if only the State is identified as a field in error. Use Exhibit 3.12.8–6.

  7. If the first three digits of the zip code equals 340, 090 through 098 or 962 through 966, use the military city, state and zip codes shown in Exhibit 3.12.8–9 to determine a valid city and state.

3.12.8.3  (01-01-2010)
Section 02 Error Register

  1. Section 02 of the Error Register contains additional payee (payer for Forms 1096 and 8487) entity data.

  2. Listed below are the fields contained in Section 02:

    1. Field A, Payer Account Number for Payee. This field will be blank for forms 1096 and 8487. The length of this field is 20 positions.

    2. Field B, 2nd TIN not indicator

    3. Field C, Corrected/Amended indicator

    4. Field D, check digit—An entry in this field is valid only for Forms 1096 with an Account Type Code "S" .

    5. Field E, Tin Type per PMF Source. An entry in this field is valid only for Forms 1096 with an Account Type Code "S" .

3.12.8.3.1  (01-01-2010)
Section 02, Field A, Payer Account Number for Payee

  1. There is no validity check of this field for any payee type documents.

  2. If you notice that the field is in error, correct it on the error register.

  3. If an entry is made in error on a payer form (Forms 1096 or 8487) blank it out on the error register.

  4. Payer forms (1096 and 8487) will be assigned an asterisk if this field is not blank.

3.12.8.3.2  (01-01-2010)
Section 02, Field B, 2ND TIN NOT Indicator

  1. This is a one position field/code.

  2. Valid characters are 1 (one) or blank for Forms 1099–B, DIV, INT, MISC, OID and PATR only. It must be blank for all other documents.

  3. This field should be coded 1 (one) if the "2nd TIN Not. " checkbox is checked or blank if it is not checked.

3.12.8.3.3  (01-01-2010)
Section 02, Field C, Corrected/Amended Indicator for IRP documents

  1. This is a one position field/code.

  2. Valid characters are:

    1. F—original document (Form 1096 is always original. Do not use G.)

    2. G—corrected/amended document

  3. If this field is correctly coded a "G" , a document is valid with no money amounts.

  4. If this field is correctly coded an "F " , at least one money amount must be present except for Forms 1099–R, or Forms 1099–MISC with a Direct Sales Indicator of 1.

  5. If the indicator is an "F" and accurate and no money amounts are present, except for the forms outlined in 3.12.8.3.3 (4), delete the document using Action Code 2 and Error Reject Disposition Code D to reinput.

3.12.8.3.4  (01-01-2010)
Section 02, Field D, Check Digit for Form 1096

  1. This field will only cause an error condition for SCRIPS processed labeled Forms 1096, Account Type Code S.

  2. Payee documents and ISRP processed Forms 1096 (Account Type Code B, C, or M) should have blanks in this field.

  3. Input Action Code 7 to clear if the check digit and TIN are correct.

  4. Input Action Code 6 to correct the check digit and/or TIN.

  5. An incorrect check digit will cause an error condition in the check digit and TIN type fields.

3.12.8.3.5  (01-01-2010)
Section 02, Field E, TIN Type for PMF

  1. This is a one position field.

  2. This field will only cause an error condition for SCRIPS processed labeled Forms 1096, Account Type Code S.

  3. Payee documents and ISRP processed Forms 1096 (Account Type Code B, C or M) should have blanks in this field.

  4. Valid characters in this field are:

    1. 1—BMF

    2. 2—IMF

    3. 3—EPMF

    4. 4—NMF

  5. Input Action Code 7 to clear if the TIN type is correct.

  6. Input Action Code 6 to correct an error.

  7. An incorrect TIN type will cause an error condition in the TIN type field and check digit field.

3.12.8.4  (01-01-2010)
Section 06 Error Register

  1. Section 06 of the Error Register contains money amounts indicators and descriptions.

  2. Do not code a breaker for a money amount field unless it needs to be changed from negative to positive or from positive to negative.

  3. Money amounts have a maximum length of twelve positions.

  4. Money amount fields are always dollars only. Alpha characters are valid in indicator and description fields only.

  5. Money amount fields must be all numeric (including zero).

  6. All returns transcribed with a money amount(s) of one million dollars or greater, or losses greater than 10,000 are output to the Error Register for physical review. Review of such returns is necessary to make sure that each money amount was transcribed correctly. If the entry is a money amount was transcribed correctly and the documents do not meet fraudulent criteria, use Action Code 7. If the documents appear to be fraudulent follow local procedures for coordination with Criminal Investigation.

    Note:

    Returns with Account Type Code S must be obtained from the SCRIPS Section.

  7. If any of Fields A through L is in error, make necessary corrections to the field(s) on the error register. This includes changing a blank required money amount field to zero if a zero should have been transcribed. Before changing a blank to zero, verify that no significant money amount is present on the document. To zero a field, line through the incorrect data and edit one zero above the incorrect data.

  8. Returns should contain a significant amount in at least one of the required money fields if the return was selected for processing with the exception of items listed in paragraph b) below.

    1. If not, and the return was not transcribed in error, delete the record with Action Code 2 and Error/Reject Disposition Code "D" .

    2. Zero amounts in all money fields are acceptable for the following conditions: If corrected/amended returns (Section 02 Field C = G) and original returns (Section 02 Field C = F) for Forms 1099–MISC with direct sales box checked.

    3. If Box 4, "Federal Income Tax Withheld" , is the only money amount on the return, delete the return using Action Code 2. If the return is a Form W-2G and Box 2 is the only money amount on the return "Federal Income Tax Withheld" delete the return using Error/Reject Disposition Code "D" .

  9. The money amounts for each document are explained below.

  10. Exhibits 3.12.8–1 and 3.12.8–2 contain the required fields and box (line) numbers the fields represent for all of the returns.

  11. Correct erroneous negative amounts as follows:

    1. If the negative amount is present because of a transcription error, correct the field using Action Code 6.

    2. If a negative amount was erroneously edited by Document Perfection, change the field to zero using Action Code 6. However, if the correction results in all required money amounts being zero, delete the return according to procedures in IRM 3.12.8.1.10.

  12. It is necessary to verify that prior year Forms 1096 were converted to the correct processing year format.

  13. Do a cursory review of the Section 06 money amounts. If any amounts were input incorrectly, correct using Action Code 6.

  14. If a filer enters more than one amount in a box, circle the amounts and enter the total of the two amounts above the circled amounts.

  15. Review all errors for input errors. Make necessary corrections using Action Code 6. If there are no input errors, release using Action Code 7.

  16. If a taxpayer enters a negative amount for a positive only field, enter zero.

  17. Unused alpha field designators will no longer print in this Section.

3.12.8.4.1  (01-01-2010)
Section 06, Form 5498–SA Doc Code 27 Format Code 023

  1. Field A, Money Amount 1

    1. This money amount field should be Box 1 "Employee or self-employed person's Archer MSA Contributions made in 2009 and 2010 for 2009" .

    2. Only positive amounts (including zero) are accepted.

  2. Field B, Money Amount 2

    1. This money amount field should be Box 2 "Total Contributions made in 2009."

    2. Only positive amounts (including zero) are accepted.

  3. Field C, Money Amount 3

    1. This money amount field should be Box 3 "Total HSA or Archer MSA Contributions made in 2009 for 2008."

    2. Only positive amounts (including zero) are accepted.

  4. Field D, Money Amount 4

    1. This money amount field should be Box 4 "Rollover Contributions not included in boxes 1, 2, or 3" .

    2. Only positive amounts (including zero) are accepted.

  5. Field E, Money Amount 5

    1. This money amount field should be Box 5 "Fair Market Value of HSA, Archer MSA, or M & C MSA" .

    2. Only positive amounts (including zero) are accepted.

  6. Field F, Box 6

    1. This is Box 6, "HSA, Archer MSA, or Medicare + MA MSA" checkbox's.

    2. The valid code 1 "HSA" .

    3. The valid code 2 "Archer MSA" .

    4. The valid code 3 "MA MSA" .

    5. Blank "if no box is checked or multiple boxes checked" .

  7. Field G through R must be blank.

3.12.8.4.2  (01-01-2010)
Section 06 Form 5498 Doc Code 28 Format Code 022

  1. Field A, Money Amount 1

    1. This money amount field should be Box 1 "IRA Contributions other than amounts in boxes 2-4 and 8-10" .

    2. Only positive amounts (including zero) are accepted.

  2. Field B, Money Amount 2

    1. This money amount field should be Box 2 "Rollover Contributions " .

    2. Only positive amounts (including zero) are accepted.

  3. Field C, Money Amount 3

    1. This money amount field should be Box 3 "Roth IRA Conversion Amount" .

    2. Only positive amounts (including zero) are accepted.

  4. Field D, Money Amount 4

    1. This money amount field should be Box 4, "Recharacterized Contributions" .

    2. Only positive amounts (including zero) are accepted.

  5. Field E, Money Amount 5

    1. This money amount field should be Box 5, "Fair Market Value of Account" .

    2. Only positive amounts (including zero) are accepted.

  6. Field F, Money Amount 6

    1. This money amount field should be Box 6, "Life Insurance cost included in Box 1" .

    2. Only positive amounts (including zero) are accepted.

  7. Field G

    1. Check for IRA/SEP/SIMPLE/ROTH IRA/

    2. The valid code 1 "IRA"

    3. The valid code 2 "SEP"

    4. The valid code 3 "SIMPLE"

    5. The valid code 4 "ROTH IRA"

    6. Blank "no box checked"

  8. Field H, Money Amount 8

    1. This money amount field should be Box 8, "SEP Contributions " .

    2. Only positive amounts (including zero) are accepted.

  9. Field I, Money Amount 9

    1. This money amount field should be Box 9, "SIMPLE Contributions " .

    2. Only positive amounts (including zero) are accepted.

  10. Field J, Money Amount 10

    1. This money amount field should be Box 10, "ROTH IRA Contributions " .

    2. Only positive amounts (including zero) are accepted.

  11. Field K, Box 11

    1. Check for RMD for 2009.

    2. The valid code 1 "RMD" .

    3. Blank if box is not checked.

  12. Fields L through R must be blank.

3.12.8.4.3  (01-01-2010)
Section 06 Form 1099–Q Doc Code 31 Format Code 031

  1. Field A, Money Amount 1

    1. This money amount field should be Box 1, "Gross Distribution " .

    2. Only positive amounts (including zero) are accepted.

  2. Field B, Money Amount 2

    1. This money amount field should be Box 2, "Earnings" .

    2. Only positive amounts (including zero) are accepted.

  3. Field C, Money Amount 3

    1. This money amount field should be Box 3, "Basis" .

    2. Only positive amounts (including zero) are accepted.

  4. Field D, Box 4

    1. Check for Trustee -to-trustee transfer.

    2. The valid code is 1 if box is checked.

    3. Blank if box is not checked.

  5. Field E, Box 5

    1. Check for Private or State or Coverdell ESA.

    2. The valid code is 1 if "Private" box is checked.

    3. The valid code is 2 if "State" box is checked.

    4. The valid code is 3 if "Coverdell ESA." box is checked

    5. Blank if neither or all boxes are checked.

  6. Field F, Box 6

    1. Check for Non-Designated Beneficiary.

    2. The valid code is 1 if box is checked.

    3. Blank if box is not checked.

  7. Fields G through R must be blank.

3.12.8.4.4  (01-01-2010)
Section 06 Form W-2G Doc Code 32 Format Code 010

  1. Field A , Money Amount 1

    1. This money amount field should be Box 1, "Gross Winnings " .

    2. Only positive amounts (including zero) are accepted.

  2. Field B, Money Amount 2

    1. This money amount field should be Box 2, "Federal Income Tax Withheld" .

    2. Only positive amounts (including zero) are accepted.

    3. This field must be equal to or less than the sum of Fields A and Field C.

  3. Field C, Money Amount 3

    1. This money amount field should be Box 7, "Winnings from Identical Wagers" .

    2. Only positive amounts (including zero) are accepted.

  4. Fields D through R must be blank.

3.12.8.4.5  (01-01-2010)
Section 06 Form 1096 Doc Code 69 Format Code 007

  1. Field A,

    1. This field should reflect the number if original documents (Forms 1098, 1099, 5498, and W-2G) transmitted by the Form 1096. This is not a money field.

    2. For Account Type Code B, C, or M Forms 1096, this entry will be coded before a slash(/) in Box 3 (i.e.25/) and should be the same as the number appearing in that position on the Form 1096. If the numbers agree, input Action Code 7.

    3. Only positive amounts (including zero) are accepted.

    4. For Account Type Code S Forms 1096, the entry in this field is calculated by the scanner and may not match the entry in box 3. If this field is zero on an Account Type Code S Form 1096 and Field B is also zero, enter 1 in Field A.

    5. This field must be greater than or equal to Field J, Original Documents Subject to Penalty. If not, Both Field A and Field J will be considered in error.

    6. Forms 1096 that transmit more than 998 payee, documents will appear in the error register on the first pass only.

  2. Field B,

    1. This field should reflect the number if amended documents (Forms 1098, 1099, 5498, and W-2G) transmitted by the Form 1096. This is not a money field.

    2. For Account Type Code B, C, or M Forms 1096, this entry will be coded after a slash (/) in Box 3 (i.e.25/) and should be the same as the number appearing in that position on the Form 1096. If the numbers agree, input Action Code 7

    3. Only positive amounts (including zero) are accepted.

    4. For Account Type Code S Forms 1096, the entry in this field is calculated by the scanner and may not match the entry in box 3.

    5. This field must be greater than or equal to Field K, Amended Documents Subject to Penalty. If not, Both Field Band Field will be considered in error.

    6. Forms 1096 that transmit more than 998 payee, documents will appear in the error register on the first pass only.

  3. Field C, Money Amount 3 from Box 4

    1. This money amount field should be the "Amount of Federal Tax Withheld" .

    2. This field must be equal to or greater than zero.

  4. Field D, Money Amount from Box 5

    1. This amount should be the total amount reported for the Form 1096.

    2. This field must be equal to or greater than zero.

  5. Field E, Final Return Indicator

    1. The valid codes are 1 and blank.

    2. If Field is marked, enter 1.

    3. Blank if Field is not marked.

  6. Field F, Money Amount 5

    1. This field should contain the TIN Type and Return Code. It is edited immediately before the preprinted or edited Return Code that identifies the type of returns transmitted.

    2. The valid code 1 is EIN.

    3. The valid code 2 is SSN.

    4. This field must be one of the following three (3) digit combinations.

      Return Type TIN Type/Return Code
      1098 181 or 281
      1098-C 178 or 278
      1098–E 184 or 284
      1098–T 183 or 283
      1099–A 180 or 280
      1099–B 179 or 279
      1099–C 185 or 285
      1099–CAP 173 or 273
      1099–DIV 191 or 291
      1099–G 186 or 286
      1099–H 171 or 271
      1099–INT 192 or 292
      1099–LTC 193 or 293
      1099–MISC 195 or 295
      1099–OID 196 or 296
      1099–PATR 197 or 297
      1099–Q 131 or 231
      1099–R 198 or 298
      1099–S 175 or 275
      1099–SA 194 or 294
      5498 128 or 228
      5498–ESA 172 or 272
      5498–SA 127 or 227
      W-2G 132 or 232

    5. Forms 1096 processed through SCRIPS (Account Type Code S in the document header ) will have a "5" if the field is blank or it cannot be determined. Correct by researching and entering the correct number.

    6. See IRM 3.11.8 for more details.

  7. Field G, Payment Codes

    1. For ISRP entered documents, this field contains codes which represent payments being reported on the following information returns only: Forms 1099–DIV, Forms 1099–G, and Forms 1099–MISC.

    2. These codes must be alpha and in ascending order and may not be repeated.

    3. Payment code "Z" is used for any Form 1096 that transmits only amended detail documents with no money amounts.

    4. Account Type Code S documents will have Payment Codes for all documents that are transmitted by Form 1096.

    5. For Forms 1096 that transmit Forms 1099–DIV (Field F equal to 191 or 292), the field must be in the range of one to three alpha characters, the alpha(s) present must be in ascending order; no alpha(s) may be repeated. Allowable alpha(s) are A (Box 1a), E (Box 5) and/or F (Box 6). If amounts are present in other than 1, 5 ,6 code an "A" as the payment code.

    6. For Forms 1096 that transmit Forms 1099–G (Field F equals 186 or 286), the field must be in the range of one to four alpha(s) characters; the alpha(s) present must be in ascending order; no alpha(s) may be repeated. Allowable alpha(s) are A (Box 1), B (Box 2), F (Box 6) and/or G (Box 7). If amounts are present in other than 1, 2, 6, or 7 code an "A as the payment code."

    7. For Forms 1096 that transmit Forms 1099–MISC (Field F equals 195 or 295), the field must be in the range of one to twelve alpha(s) characters; the alpha(s) present must be in ascending order; no alpha(s) may be repeated. Allowable alpha(s) are as follows:

      A Box 1, Rents
      B Box 2, Royalties
      C Box 3, Other Income
      D Box 4, Federal Income Tax Withheld
      E Box 5, Fishing Boat Proceeds
      F Box 6, Medical and Health Care Payments
      G Box 7, Nonemployee compensation
      H Box 8, Substitute payment in lieu of dividends or interest
      J Box 10, Crop Insurance
      K Box 13, Excess Golden Parachute payments
      L Box 14, Gross proceeds paid to an attorney
      M Box 15a, Section 409A deferrals
      N Box 15b, Section 409A income

    8. For Forms 1096 that transmit Forms 1099–Q (Field F equal to 131 or 231), the field must be in the range of one to three alpha characters; the alpha(s) present must be in ascending order; no alpha(s) may be repeated. Allowable alpha(s) are A (Box 1), B (Box 2) and C (Box 3).

    9. For Forms 1096 that transmit Forms 1098 (Field F equal to 181 or 281), the field must be in the range of one to three alpha characters; the alpha(s) present must be in ascending order; no alpha(s) may be repeated. Allowable alpha(s) are A (Box 1), B (Box 2) and C (Box 3).

    10. For Forms 1096 that transmit Forms 1098–E (Field F equal to 184 or 284), the field has only one allowable alpha character; A (Box 1).

    11. For Forms 1096 that transmit Forms 1098–T (Field F equal to 183 or 283), the field two allowable alpha characters; the alpha(s) present must be in ascending order; Allowable alpha(s) are A (Box 1), C, (Box 3).

    12. For Form 1096 that transmit Forms 1099–B (Field F equal to 179 or 279), the field must be in the range of one to three alpha characters; the alpha(s) present must be in ascending order; no alphas may be repeated. Allowable alpha(s) are C (Box 2), D (Box 3), E (Box 4), I (Box 8), J (Box 9) and K (Box 10) and L (Box 11).

  8. Field H, Delinquent Return Indicator and Date

    1. These entries if applicable, should be in the first seven boxes under the wording "For Official Use Only" or the date may be derived from the IRS received date stamp in the official use only box.

    2. If a delinquent return indicator is P or X, it must be followed by a valid date. A valid date is one which has the following format YYYYMMDD, where YYYY is the processing year MM is equal to01–12 and DD is equal to 01–31.

      The valid date range
      P 2009/03/17 through 2010/12/31
      X 2010/03/16 through 2010/12/31

    3. The valid entries for the delinquent return indicator for an Account Type Code B or C Form 1096 are A, C, E, N, P , X and blank.

    4. The valid entries for an Account Type Code S Form 1096 are A, C, E, N, X and blank.

    5. If the delinquent return indicator is A, C, E, N, or blank a date must not be present .

    6. On prior year returns this field must be blank.

  9. Field I, Correspondence Indicators

    1. This entry, if present, should be in the last two boxes under the wording "For Official Use Only" .

    2. The valid entries in this field are 01 through 14, 20 through 31, 99 and blank. If a correct indicator cannot be determined, blank the field.

  10. Field J, Original Documents Subject to Penalty

    1. The entry for Account Type Code B and Account Code C documents can be found in the bottom left corner of the Form 1096. The number will be coded before a slash (/) (i.e.25/).

    2. The field for Account Type Code S will not be present on the Form 1096. The entry is computed by SCRIPS.

    3. This field must be equal to or less than Field A. If not both Field A and Field J will be considered in error.

    4. Only positive amounts (including zero) are accepted.

    5. If Field J is in error on Account Type Code S documents, notify your campus staff analyst.

  11. Field K, Amended Documents Subject to Penalty

    1. The entry for Account Type Code B and Account Code C documents can be found in the bottom left corner of the Form 1096. The number will be coded after a slash (/) (i.e.25/).

    2. The field for Account Type Code S will not be present on the Form 1096. The entry is computed by SCRIPS.

    3. If Field K is in error on Account Type Code S documents, notify your campus staff analyst.

    4. This field must be equal to or less than Field B. If not both Field B and Field will be considered in error.

    5. Only positive amounts (including zero) are accepted.

  12. Field L, Year Indicator

    1. An entry should be present in this field on Account Type Code B and Account Code C documents.

    2. The only valid entries on an Account Type Code B and Account Code C document are 06, 07, 08, and blanks.

    3. This field must be blank for all Account Type Code S Forms 1096.

3.12.8.4.6  (01-01-2010)
Section 06 Form 1099–H Doc Code 71 Format Code 027

  1. Field A, Money Amount 1

    1. This money amount field should be Box 1, "Amount of HCTC Advance Payments" .

    2. Only positive amounts (including zero) are accepted.

  2. Field B, Box 2

    1. This entry should be Box 2, "Number of Mos. HCTC Advance Payments Received" .

    2. This field is either numeric or blank.

  3. Field C, Money Amount

    1. This money amount field should be Box 3, "Jan" .

    2. Only positive amounts (including zero) are accepted.

  4. Field D, Money Amount 4

    1. This money amount field should be Box 4, "Feb" .

    2. Only positive amounts (including zero) are accepted.

  5. Field E, Money Amount 5

    1. This money amount field should be Box 5, "Mar" .

    2. Only positive amounts (including zero) are accepted.

  6. Field F, Money Amount 6

    1. This money amount field should be Box 6, "Apr" .

    2. Only positive amounts (including zero) are accepted.

  7. Field G, Money Amount 7

    1. This money amount field should be Box 7, "May" .

    2. Only positive amounts (including zero) are accepted.

  8. Field H, Money Amount 8

    1. This money amount field should be Box 8, "June" .

    2. Only positive amounts (including zero) are accepted.

  9. Field I, Money Amount 9

    1. This money amount field should be Box 9, "July" .

    2. Only positive amounts (including zero) are accepted.

  10. Field J, Money Amount 10

    1. This money amount field should be Box 10, "Aug" .

    2. Only positive amounts (including zero) are accepted.

  11. Field K, Money Amount 11

    1. This money amount field should be Box 11, "Sept" .

    2. Only positive amounts (including zero) are accepted.

  12. Field L, Money Amount 12

    1. This money amount field should be Box 12 ,"Oct" .

    2. Only positive amounts (including zero) are accepted.

  13. Field M, Money Amount 13

    1. This money amount field should be Box 13, "Nov" .

    2. Only positive amounts (including zero) are accepted.

  14. Field N, Money Amount 14

    1. This money amount field should be Box 14, "Dec" .

    2. Only positive amounts (including zero) are accepted.

3.12.8.4.7  (01-01-2010)
Section 06 Form 5498–ESA Doc Code 72 Format Code 028

  1. Field A, Money Amount 1

    1. This money amount field should be Box 1, "Coverdell ESA Contributions" .

    2. Only positive amounts (including zero) are accepted.

  2. Field B, Money Amount 2

    1. This money amount field should be Box 2, "Rollover Contributions " .

    2. Only positive amounts (including zero) are accepted.

  3. Field C through R must be blank.


Next

More Internal Revenue Manual