3.12.13  Employment Tax Returns (Cont. 1)

3.12.13.25  (01-01-2015)
Section 02 (Form 941, 941-PR, 941-SS)

  1. The following sections provide information on Form(s) 941, 941-PR or 941-SS, Section 02. If a Field is not applicable to the form, it is indicated in the "Comments" column.

  2. Any money amount will be entered in dollars and cents.

    Section 02- Forms 941, 941-PR, and 941-SS
    Field
    Designator
    Field
    Length
    Title of Field Dollars and cents ($) or Numeric Location on Return Positive (+) or negative (-) Comments
    0202 15 Wages, Tips, and Other Compensation ($) Line 2 (+)  
    02ITW

    Note:

    Field applicable only to Form 941

    14 Total Federal Income Tax Withheld ($) Line 3 (+)  
    0204 1 Exempt From Social Security and Medicare Taxes Indicator   Line 4   If the box contains an entry, Code and Edit was instructed to edit a CCC B on the return. ERS examiners should review Field 01CCC for a B if line 4 contains an entry when Field 01CCC displays.
    02SSW 14 Taxable Social Security Wages ($) Line 5a, column 1 (+)  
    02SST 14 Taxable Social Security Tips ($) Line 5b, column 1 (+)  
    02MED 15 Taxable Medicare Wages and Tips ($) Line 5c, column 1 (+)  
    02XMT 15 Additional Medicare Wages and Tips Tax ($) Line 5d (+) 2013 and subsequent
    02TSM 15 Total Social Security and Medicare Tax -Taxpayer ($) Line 5e, line 5d returns filed prior to 2013 (+)  
    02QTX 15 Section 3121 (q) Notice and Demand ($) Line 5f line 5d tax periods 2011    
    02FP (Applicable to Form 941, tax periods 201006-201012 7 Number of qualified employees paid exempt Wages/Tips beginning this quarter Numeric Line 6a (Applicable to Form 941, tax periods 201006-201012    
    02NP (Applicable to Form 941 tax periods 201006-201012 7 Number of qualified employees paid exempt Wages/Tips during this quarter Numeric Line 6b (Applicable to Form 941 tax periods 201006-201012    
    02EW (Applicable to Form 941 tax periods 201006-201012 14 Exempt Wages/Tips paid qualified employees during quarter ($) Line 6c (Applicable to Form 941 tax period 201006-201012 (+)  
    02TW (Applicable to Form 941 tax periods 201006-201012 15 Tax on exempt Wages/Tips paid qualified employees during quarter-Taxpayer ($) Line 6d (Applicable to Form 941 tax periods 201006-201012 (+)  
    02BA 15 Total taxes before adjustments-Taxpayer ($) Line 6, 2012 and subsequent, Line 6e (Applicable to Form 941 tax periods 201006-201012 (+)  
    02FC 14 Current quarter’s fraction of cents ($) Line 7 2011 and subsequent, line 7a 2010 and prior (+)/(-)  
    02SP 14 Current quarter’s sick pay ($) Line 8 2011 and subsequent, line 7b 2010 and prior (+)/(-)  
    02TG 14 Current quarter’s adjustment for tips and group life insurance ($) Line 9 2011 and subsequent, line 7c 2010 and prior (+)/(-)  
    02TA (Applicable to Forms 941, 941-PR, 941-SS, Rev 2005 through 201003) 15 Total adjustments amount- Taxpayer ($)
    • Line 7h (Forms 941, 941-PR, and 941–SS, Rev 2005 through 2008)

    • •line 7d (Forms 941, 941-PR and 941-SS, Rev 2009 and Feb 2010)

    (+)/(-)  
    02TT 15 Total tax-Taxpayer ($) Line 10 (2011 and subsequent) or line 8 (2010 and prior) (+)/(-)  
    02EC 10 Advance earned income credit ($) Line 9 (+) Not valid for 201103 and subsequent.
    02DEP 15 Total deposits for quarter ($) Line 11 (+)  
    02CPM 15 COBRA Premium Assistance Payments ($) Line 12a (+) Valid 200903 through 201312
    02CEM 7 Number of Recipients Receiving COBRA Numeric Line 12b (+) Valid 200903 through 201312
    02MRN 7 March Number of qualified employees paid exempt wages/tips Numeric Line 12c (+) Applicable to Form 941, 941-PR, and 941-SS for 2nd quarter (for April May June) 2010 only.
    02MRW 14 March amount of exempt Wages/Tips paid qualified employees ($) Line 12d (+) Applicable to Form 941, 941-PR, and 941-SS for 2nd quarter (for April May June) 2010 only.
    02MRT 15 Tax credit on March exempt Wages/Tips paid qualified employees- Taxpayer ($) Line 12e (+) Applicable to Form 941, 941-PR, and 941-SS for 2nd quarter (for April May June) 2010 only.
    02STL 15 Subtotal Tax ($) Line 13 2009 and subsequent (+) Valid for 200903 through 201312. Field is computed by adding Fields 02DEP and 02CPM.

    For Rev April 2010: Field is computed by adding Fields 02DEP, 02CPM, and 02MRT
    02B/R 15 Balance Due/Overpayment ($) Line 12 or 13, line 14 or 15 (For Rev 2009-2012) (+)/(-)  

3.12.13.25.1  (01-01-2015)
Field 0202– Wages, Tips and Other Compensation- 15 Positions

  1. This Field is located on Form 941, line 2 and shows the total taxable wages, tips or other compensation before any payroll deductions. The entry must be entered in dollars and cents. This Field does not apply to Forms 941-PR and 941-SS.

  2. Invalid Condition This Field is invalid if it is not all numeric.

  3. Correction Procedures: If transcribed incorrectly, enter the correct amount from the return.

3.12.13.25.2  (01-01-2015)
Field 02ITW– Total Federal Income Tax Withheld - 14 Positions

  1. This Field is transcribed from Form 941, line 3. This entry on Form 941 is the Total Federal Income Tax Withheld (FIT) from all employees' wages, tips, or other taxable compensation. This Field does not apply to Forms 941-PR and 941-SS.

    Note:

    Some wages, tips, or other compensation reported on line 2 may be exempt from federal income tax. Refer to Pub 15 Circular E, Pub 15-A, Employers' Supplemental Tax Guide, or Pub 15-B, Employers' Tax Guide to Fringe Benefits, for determining whether FIT is applicable.

  2. The entry must be entered in dollars and cents.

  3. The return line must be positive. Change any negative amount reported on line 3 to a positive figure.

  4. Correction Procedures: Compare the screen and the return. Correct any transcription errors.

3.12.13.25.3  (01-01-2015)
Field 0204— Exempt From Social Security and Medicare Tax Indicator -1 Position

  1. This Field is transcribed from Forms 941, 941-PR or 941-SS, line 4.

  2. The taxpayer checks the box to indicate that the wages are not subject to Social Security and/or Medicare taxes.

  3. Valid entries are "1" , e.g. check mark in the box on line 4, or blank.

  4. If the box is checked, a "1" should appear in Field 0204 and Field 01CCC should indicate a "B" .

    Note:

    Always enter a Computer Condition Code B when the box on Forms 941, 941-PR or 941-SS, line 4 contains an entry and Field(s) 025A, 02SST, and/or 02MED are blank.

  5. Invalid Condition– This Field is in error if the box is not checked on line 4, or blank.

  6. Correction Procedures: Compare the screen display with the return.

    If ... Then ...
    Transcribed incorrectly, Enter the correct value from the return.
    A check mark is not present in the box on line 4, Forms 941, 941-PR or 941-SS, 1- Blank any entry in Field 0204.

    2- Enter GTSEC 01 to check Field 01CCC for CCC B. If present, delete the "B" from the Field.

    Caution:

    When deleting the "B" from Field 01CCC, be careful you do not blank any other CCC from that Field.

    A check mark is present in the box on line 4, Forms 941, 941-PR or 941-SS, but there is no "B" present on the return, 1- GTSEC 01 to check for a "B" in 01CCC.

    2- If not present in 01CCC, enter the "B" .

3.12.13.25.4  (01-01-2015)
Field 02SSW– Taxable Social Security Wages- 14 Positions

  1. This field shows the reported amount of taxable Social Security Wages transcribed from the return.

  2. This field is located on Forms 941, 941-PR, or 941-SS, line 5a, Column 1.

  3. The field shows the amount of wages paid by the employer to the employee(s) who are subject to Social Security tax. The tax amount includes contributions paid by both the employer and employee.

  4. This entry is always a positive amount.

  5. The entry is always entered in dollars and cents.

  6. Invalid Condition This field is in error if it is not all numeric.

  7. Correction Procedures: Compare the screen display with the entry on the return. If transcribed incorrectly then enter the correct amount on the screen.

3.12.13.25.5  (01-01-2015)
Field 02SST– Taxable Social Security Tips- 14 Positions

  1. This field shows the reported amount of taxable Social Security Tips transcribed from the return.

  2. This field is located on Forms 941, 941-PR, and 941-SS, line 5b, Column 1.

    1. Taxable Tips are reported, if applicable, on the Form 941 for each quarter.

    2. This field is shown as dollars and cents and is always a positive amount.

  3. Invalid Condition: This field is in error if it is not all numeric.

  4. Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

3.12.13.25.6  (01-01-2015)
Field 02MED– Taxable Medicare Wages and Tips- 15 Positions

  1. This field shows the reported amount of taxable Medicare Wages and Tips transcribed from the return.

  2. This field is located on Form 941, Form 941-PR or Form 941-SS, line 5c, Column 1. This is the amount of wages paid by the employer to the employee(s) who are subject to Medicare tax. The tax includes contributions paid by both the employer and employee.

  3. This entry is entered as dollars and cents.

  4. The entry is always a positive amount.

  5. Invalid Condition: This field is in error if it is not all numeric.

  6. Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

3.12.13.25.7  (01-01-2015)
Field 02XMT Additional Taxable Medicare Wages and Tips

  1. Field 02XMT is transcribed from line 5d, Form 941, Form 941-PR or Form 941-SS for tax periods 201303 and subsequent.

  2. This field must be positive.

  3. The field must be in dollar and cents.

  4. Invalid Condition: This field is in error if it is not all numeric.

  5. Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

3.12.13.25.8  (01-01-2015)
Field 02TSM- Total Social Security and Medicare Taxes–Taxpayer– 15 Positions

  1. This field is transcribed from Form 941, Form 941-PR or Form 941-SS, line 5e (Revision 2013 and subsequent), line 5d (2012 and prior). This is the total amount of the Social Security and Medicare taxes for the taxable wages and tips paid by the employer to the employee(s).

  2. The field must be positive.

  3. The field must be in dollars and cents.

  4. Invalid Condition: This field is invalid if the figure is not numeric.

  5. Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

3.12.13.25.9  (01-01-2015)
Field 02QTX- Section 3121 (q) Notice and Demand

  1. This field is located on Form 941, line 5f (2013 and subsequent), line 5e (2012 only).

  2. When an employee fails to report tips to the employee’s employer, the employer is not liable for its portion of the social security and Medicare taxes on the unreported tips until the IRS makes notice and demand to the employer. The employer, upon receipt of the IRS notice of demand, includes the amount on their next quarterly Form 941.

  3. The field must be positive and valid for periods 201304 and subsequent.

  4. The field must be in dollars and cents.

  5. Invalid Condition: This field is invalid if the figure is not numeric.

  6. Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

3.12.13.25.10  (01-01-2015)
Field 02FP - Number of Qualified Employees Paid Exempt Wages/Tips Beginning This Qtr.- 7 Positions

  1. This field is located on Form 941, (Rev. April 2010), line 6a. On line 6a, the employer indicates the number of qualified employees hired during the quarter indicated on the Form 941, who received their first payroll check from this employer during that quarter.

  2. The field is only applicable to 201006 through 201012 returns.

  3. The entry cannot exceed 7 numeric characters.

  4. The entry must be a positive number.

  5. Invalid Condition: This field is invalid when it is negative or other than numeric.

  6. Correction Procedures: Compare the screen display to the return.

    If ... Then ...
    Transcribed incorrectly, Enter the correct amount from the return.
    The tax period of the return is earlier than 201006 or after 201012, Blank the field as a misplaced entry.
    The entry on line 02FP is a negative amount, Treat the entry as a positive amount.

3.12.13.25.11  (01-01-2015)
Field 02NP - Number of Qualified Employees Paid Exempt Wages/Tips During This Qtr- 7 Positions

  1. This field is located on Form 941, (Rev. April 2010) line 6b. On line 6b, the employer indicates the number of qualified employees (i.e., those hired after March 18th, 2010), who were paid wages during the quarter shown on the return. which qualify to be exempt from the employer’s share of Social Security taxes.

  2. The field is only applicable to 201006 thru 201012.

  3. The entry cannot exceed 7 numeric characters.

  4. The entry must be a positive entry.

  5. Invalid Condition: This field is invalid when it is negative or other than numeric.

  6. Correction Procedures: Compare the screen with the return.

    If ... Then ...
    Transcribed incorrectly, Enter the correct amount from the return.
    The tax period of the return is earlier than 201006 or after 201012, Blank the field as a misplaced entry.
    The entry in Field 02NP is a negative amount, Treat the entry as a positive amount.

3.12.13.25.12  (01-01-2015)
Field 02EW - Exempt Wages/Tips Paid Qualified Employees During Qtr.- 15 Positions

  1. This field is located on Form 941, (Rev. April 2010) line 6c. On line 6c, the employer enters the total wages earned by the qualified employees for the quarter indicated in the “Report for this quarter of 20xx” box in the upper right hand corner to compute the 6.2 percent Social Security tax credit amount.

  2. The field is only applicable to 201006 through 201012 returns.

  3. The entry must be in dollars and cents.

  4. The entry cannot exceed 15 numeric characters.

  5. The entry must be a positive amount.

  6. Invalid Condition: This field is invalid when it is negative or other than numeric.

  7. Correction Procedures: Compare the screen display with the return.

    If ... Then ...
    Transcribed incorrectly, Enter the correct amount from the return.
    The tax period of the return is earlier than 201006 or after 201012, Blank the field as a misplaced entry.
    The entry on line 02EW is a negative amount, Treat the entry as a positive amount.

3.12.13.25.13  (01-01-2015)
Field 02TW- Tax on Exempt Wages/Tips Paid Qualified Employees During Quarter-Taxpayer-15 Positions

  1. This field is located on Form 941, (Rev April 2010), line 6d. Line 6d represents the employer's portion of the Social Security tax e.g. 6.2 percent, on the exempt wages paid to qualified employees reported on line 6c. The computed amount is treated as a credit on the return and subtracted from the computed quarterly Federal Withholding, Social Security and Medicare wage and tips taxes due.

  2. The field is only applicable to 201006 through 201012 returns.

  3. The entry must be in dollars and cents.

  4. The entry cannot exceed 15 numeric characters.

  5. The entry must be a positive amount.

  6. Invalid Condition: This field is invalid when it is negative or other than numeric.

  7. Correction Procedures: Compare the screen display against the Form 941, line 6d.

    If ... Then ...
    Transcribed incorrectly, Enter the correct amount from the return.
    The tax period of the return is earlier than 201006 or later than 201012, Blank the field as a misplaced entry.
    The entry on line 6d is a negative amount, Treat the entry as a positive amount.

3.12.13.25.14  (01-01-2015)
Field 02BA - Total Tax Before Adjustments- Taxpayer– 15 Positions

  1. This field is located on Form 941, Line 6, 2012 and subsequent (2011 and prior Line 6e). The entry represents the total of the Federal Income Tax Withheld, Social Security and Medicare taxes less the employer's portion of Social Security taxes on the exempt wages paid to qualified employees.

  2. The entry must be in dollars and cents.

  3. The entry cannot exceed 15 numeric characters.

  4. The entry must be a positive amount.

  5. Invalid Condition: This field is invalid when it is other than numeric or negative.

  6. Correction Procedures: Compare the screen display against the Form 941, line 6e.

    If ... Then ...
    Transcribed incorrectly, Enter the correct amount from the return.
    The tax period of the return is earlier than 201006 or after 201012, Blank the field as a misplaced entry.
    The entry on line 02BA is a negative amount, Treat the entry as a positive amount.

3.12.13.25.15  (01-01-2015)
Field 02FC— Current Quarter's Fraction of Cents – 14 Positions

  1. The field shows the total of the fractions of cents in the tax computation of the Social Security wages and/or tips, and Medicare wages reported on line 5a, 5b, and 5c of the return.

  2. This fields entry is located on Forms 941, 941-PR, and 941-SS, line 7, 2011 and subsequent, Line 7a 2010 and prior.

  3. The amount may be a positive or negative figure.

  4. The field must be in dollars and cents.

  5. Invalid Condition: This field is invalid if it is other than numeric.

  6. Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

3.12.13.25.16  (01-01-2015)
Field 02SP— Current Quarter's Sick Pay- 14 Positions

  1. This field represents the adjustment amount of Social Security and/or Medicare tax on Sick Pay, e.g. paid by a third party for an employee.

    Note:

    Beginning with Form 941, Rev. April 2010 and subsequent, several sub-total lines on earlier revisions of Form 941 were eliminated to provide space for new lines. The Subtotal line which showed the combined total of the Income Tax Withholding (line 3), total Social Security taxes on wages and tips (line 5d), and Total Adjustment (line 7d, Rev Jan 2010) lines was eliminated. Thus, some Form 941 returns have been received showing that total erroneously entered to line 7b (Rev April 2010, or Field 02SP). If after reviewing the return you can determine the entry is a misplaced entry, blank the entry on the display screen. If Error Code 100 generates, enter the Field 02TT> underprint amount.

  2. This fields entry is located on Forms 941, 941-PR, and 941-SS, line 8 2011 and subsequent line 7b, 2010 and prior.

  3. The amount may be a positive or negative figure.

  4. The field must be in dollars and cents.

  5. Invalid Condition: This field is invalid if it is other than numeric.

  6. Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

3.12.13.25.17  (01-01-2015)
Field 02TG— Current Quarter's Adjustments for Tips and Group Life Insurance- 14 positions

  1. The entry represents the adjustment amount of Social Security and/or Medicare tax on Tips or Group Term Life Insurance.

  2. This field is located on Forms 941, 941-PR and 941-SS, line 9 2011 and subsequent, Line 7c 2010 and prior.

  3. The amount may be a positive or negative figure.

  4. The field must be in dollars and cents.

  5. Invalid Condition: This field is invalid if it is other than numeric.

  6. Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

3.12.13.25.18  (01-01-2015)
Field 02TA - Total Adjustments- 15 Positions

  1. This field represents the net total of all adjustment amounts shown on a Form 941, 941-PR or 941-SS for periods prior to 201006.

    1. For tax period 200812 and prior the field is located on line 7h of Forms 941, 941-PR and 941-SS, (Rev 2005 through 2008). The entry represents the total of lines 7a through 7g.

    2. For tax year 2009 the field is located on line 7d of Forms 941, 941-PR and 941–SS. The entry represents the total of lines 7a through 7c.

  2. The field may be a positive or negative figure.

  3. The field should be in dollars and cents.

  4. Invalid Conditions—This field is invalid if it is not all numeric.

  5. Correction Procedures: Compare the screen display and the return. If transcribed incorrectly, enter the correct amount from the return.

3.12.13.25.19  (01-01-2015)
Field 02TT– Total Tax- Taxpayer- 15 Positions

  1. This field is located on Forms 941, 941-PR, and 941-SS, line 10 2011 and subsequent, Line 8 2010 and prior, line 10 2011 and subsequent.

  2. This field is always in dollars and cents.

  3. The entry can be a positive or negative figure.

  4. Invalid Conditions: This field is invalid if it is not all numeric.

  5. Correction Procedures: Compare the screen display and the return. If transcribed incorrectly, enter the corrected amount from the return.

3.12.13.25.20  (01-01-2015)
Field 02EC– Advance Earned Income Credit (AEIC)- 15 Positions

  1. This field is line 9 on Form 941 (Rev 2005 through 10/2010). This field is not applicable to Forms 941-PR and 941-SS.

  2. The entry in the field is the total of the Advance Earned Income Credit shown on the W-2s for all employees.

  3. The field is entered in dollars and cents and will always be a positive amount.

  4. Invalid Condition: This field is invalid if it is not all numeric.

  5. Correction Procedures: Compare the screen display and the return.

    If ... Then ...
    The Advance Earned Income Credit entry is not all numeric, Delete the amount in Field 02EC on the ERS screen.
    Transcribed incorrectly, Enter the correct amount from the return.
    Tax period began after 12/31/2010 Blank any entry in Field 02EC.

3.12.13.25.21  (01-01-2015)
Field 02DEP – Total Deposits for Quarter –15 Positions

  1. This field is located on Forms 941, 941-PR, and 941-SS, line 11.

  2. The entry is the total of the Federal Tax Deposits paid, based upon the quarterly tax liability. The entry may include an overpayment from a prior quarter which is being applied to this return.

  3. The entry is in dollars and cents and is always a positive amount.

  4. Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

3.12.13.25.22  (01-01-2015)
Field 02CPM - COBRA Premium Assistance Payments- 15 Positions

  1. The field is line 12a on Forms 941, 941-PR, and 941-SS, (Rev. 200903 through 201312.).

  2. The field displays the amount of COBRA (Consolidated Omnibus Budget Reconciliation Act) premium assistance payments made by the employer for current or unemployed former individuals who are eligible for COBRA health insurance. This assistance has been extended. It now applies to premiums paid for employees involuntarily terminated between September 1, 2008 and May 31, 2010 and to premiums paid for up to 15 months.

  3. The field entry is in dollars and cents and is a positive amount.

  4. Invalid Condition: This field is invalid if it is not blank or all numerical.

  5. Correction Procedures: Compare the screen display and the return.

    If ... Then ...
    The field was transcribed incorrectly Enter the correct amount from the return.
    The taxpayer enters the alpha characters rather than its numeric character, i.e., writes "TWO" instead of "2" Change the alpha entry to the applicable numerical character.
    The tax period of the return began prior to 01/01/2009 or after 01/01/2014 Blank the entry in Field 02CPM. Employers were allowed to claim COBRA premium assistance payments only for tax periods which began after 12/31/2008 and ended prior to 01/01/2014.
    The TP has reported a negative amount on line 12a and has subtracted this amount from line 11, Delete the amount reported as a negative and send TPNC 90 stating "We have disallowed your negative entry reported on line 12a. If you need to adjust your COBRA credits claimed from a previous period you must file Form 941-X."

3.12.13.25.23  (01-01-2015)
Field 02CEM - Number of Recipients Receiving COBRA- 7 Positions

  1. The field is located on Forms 941, 941-PR, and 941-SS, line 12b (Rev 200903 through 201312). The field displays the number of individuals who qualify for the COBRA premium assistance payments being reported on the Form 941, 941-PR, or 941-SS, line 12a (Rev 2009 and subsequent).

  2. If Field 02CEM contains a correct entry, Field 02CPM, COBRA Premium Assistance Payment, line 12a, Form 941 (Rev. 2009) must contain a numerical entry.

    Caution:

    If Field 02CEM contains an entry, and the other field is blank, error code 069 will generate.

  3. The field can be blank or numeric, but any entry must be blank, zero, or a positive number.

  4. Invalid Condition: This field is invalid if it is not blank or all numerical.

  5. Correction Procedures: Compare the screen display and the return.

    If ... Then ...
    The field was transcribed incorrectly, Enter the correct amount from the return.
    The taxpayer entered an alpha value for a numeric character, Change the alpha entry to the applicable numerical character.

3.12.13.25.24  (01-01-2015)
Field 02MRN - Number of Qualified Employees Paid Exempt Wages/Tips— 7 Positions

  1. This field is located on Form 941, (Rev April 2010) line 12c. The employer should only complete this field when filing their Form 941 for the second quarter 2010, e.g. April, May, and June, due July 31, 2010. The employer indicates the number of qualified employees paid exempt wages or tips in the first quarter 2010, e.g. between March 19 and March 31.

  2. The entry must be no more than 7 numerical characters, e.g. “0” through “9”.

  3. The entry must be a positive entry.

  4. Invalid Condition: This field is invalid when it is negative or other than numeric.

  5. Correction Procedures: Compare the screen display against Form 941 line 12c.

    Note:

    First, review the tax period of the return. If the tax period is other than 201006 (e.g. June 30, 2010), then blank any entry in Field(s) 02MRN, 02MRW, and/or 02MRT.

    If ... Then ...
    Transcribed incorrectly, Enter the correct amount from the return.
    The entry on line 12c is a negative amount Treat the entry as a positive entry.
    There is an entry on line 12c and the return is not for the quarter 201006,
    1. Blank the entry or entries (Fields 02MRN, 02MRW and/or 02MRT). If this is the only change to the form a Letter 3024C must be written. A notice will not generate for misinformation reported on lines 12c thru 12e. Use paragraph Y and include the following information: We did not process your request for the employer's share of social security on the exempt wages of employee's shown on lines 12c, 12d and/or 12e. These lines should only be completed when filing the second quarter 2010 return. If you already filed your second quarter Form 941, you may need to submit a Form 941X, Adjusted Employer's Quarterly Federal Tax Return.

3.12.13.25.25  (01-01-2015)
Field 02MRW – March Amount of Exempt Wages/Tips Paid Qualified Employees- Taxpayer— 14 Positions

  1. This field is located on Form 941, (Rev April 2010) line 12d. The employer completes this line on their second quarter 2010 return to show the amount of wages or tips paid to qualified employees in the first quarter 2010, e.g. between March 19 through March 31.

  2. The maximum length is 14 numerical characters, e.g. “0” through “9”.

  3. The entry must be in dollars and cents.

  4. The entry must be a positive number.

  5. Invalid Condition: This field is invalid when it is negative or other than numeric.

  6. Correction Procedures: Compare the screen display against Form 941, (Rev April 2010), line 12d.

    Note:

    First, review the tax period of the return. If the tax period is other than 201006 (e.g. June 30, 2010), then blank any entry in Field(s) 02MRN, 02MRW, and/or 02MRT.

    If ... Then ...
    Transcribed incorrectly, Enter the correct amount from the return.
    The entry on line 12d is a negative amount Treat the entry as a positive entry.
    There is an entry on line 12d and the return is not for the 201006 period
    1. Blank the entry or entries (Fields 02MRN, 02MRW and/or 02MRT). If this is the only change to the form a Letter 3024C must be written. A notice will not generate for misinformation reported on lines 12c thru 12e. Use paragraph Y and include the following information: We did not process your request for the employer's share of social security on the exempt wages of employee's shown on lines 12c, 12d and/or 12e. These lines should only be completed when filing the second quarter 2010 return. If you already filed your second quarter Form 941, you may need to submit a Form 941X, Adjusted Employer's Quarterly Federal Tax Return.

3.12.13.25.26  (01-01-2015)
Field 02MRT- Tax Credit On March Exempt Wages/Tips Paid Qualified Employees— 15 Positions

  1. This field is located on Form 941, (Rev April 2010) line 12e. Line 12e shows the employer’s portion of the Social Security tax they paid on the qualified employees wages or tips in the first quarter 2010 on Form 941. The tax is taken as a credit against the second quarter 2010 liability shown on the return. The credit amount is computed at 6.2 percent of the wage amount reported on line 12d.

  2. The entry must be in dollars and cents.

  3. The entry cannot exceed 15 numeric characters. e.g. “0” through “9”.

  4. The entry must be a positive number.

  5. Invalid Condition: This field is invalid when it is negative or other than numeric.

  6. Correction Procedures: Compare the screen display against Form 941, (Rev April 2010), line 12e.

    Note:

    First, review the tax period of the return. If the tax period is other than 201006 (e.g. June 30, 2010), then blank any entry in Field(s) 02MRN, 02MRW, and/or 02MRT.

    If ... Then ...
    Transcribed incorrectly, Enter the correct amount from the return.
    The entry on line 12e is a negative amount Treat the entry as a positive entry.
    There is an entry on line 12d and the return is not for the 201006 period
    1. Blank the entry or entries (Fields 02MRN, 02MRW and/or 02MRT). If this is the only change to the form a Letter 3024C must be written. A notice will not generate for misinformation reported on lines 12c thru 12e. Use paragraph Y and include the following information: We did not process your request for the employer's share of social security on the exempt wages of employee's shown on lines 12c, 12d and/or 12e. These lines should only be completed when filing the second quarter 2010 return. If you already filed your second quarter Form 941, you may need to submit a Form 941-X, Adjusted Employer's Quarterly Federal Tax Return.

3.12.13.25.27  (01-01-2015)
Field 02STL- Sub-Total- Taxpayer– 15 Positions

  1. The field is located on Forms 941, 941-PR, and 941-SS, line 13 (Rev 2009 through 201312). The field is the combined total of the Federal Tax Deposit amount (Field 02DEP) and the COBRA Premium Assistance Payments amount (Field 02CPM).

  2. Valid field entries are blank, zero, or numerical in dollars and cents.

  3. The field must be a positive field.

  4. Invalid Condition: This field is invalid if it is not blank or all numerical.

  5. Correction Procedures: Compare the screen display and the return.

    If ... Then ...
    The field was transcribed incorrectly, Enter the correct amount from the return.
    The taxpayer enters an alpha value rather than its related numeric character, e.g. writes "one" instead of "1" Change the alpha entry to the applicable numerical character.

3.12.13.25.28  (01-01-2015)
Field 02B/R - Balance Due/ Overpayment- Taxpayer- 15 Positions

  1. The field is on Forms 941, 941-PR, and 941-SS, lines 12 and 13 (200903–201312 lines 14 and 15).

  2. The entry is the total amount of tax due or overpaid, after application of the tax deposits.

  3. The entry can be a positive or negative amount shown in dollars and cents.

  4. Invalid Condition: This field is invalid if it is not all numeric.

  5. Correction Procedures: Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

3.12.13.26  (01-01-2015)
Section 03 (Form 941, 941-PR, 941-SS)

  1. The following sections provide information concerning Forms 941, 941-PR and 941-SS, Section 03.

    Field
    Designator
    Field
    Length
    Title of Field Location on Return
    03A 14 Tax Liability— 1st month Forms 941, 941-PR, and 941-SS- Page 2, line 14 (line 16, 2012 through 2015, line 17, 2009 through 2011) "Month 1" , "Month 2" , Month 3, and "Total"
    03B 14 Tax Liability— 2nd month
    03C 14 Tax Liability— 3rd month

3.12.13.26.1  (01-01-2015)
Fields 03A through 03C – Monthly Tax Liability -14 Positions

  1. The field is line 14, "Tax liability: Month 1" , "Tax liability: Month 2" , and "Tax liability: Month 3" which comprises the Record of Federal Tax Liability (ROFTL) on page 2 of Forms 941, 941-PR, and 941-SS. It is located in Part 2 directly at the top of the page.

  2. Each line within the ROFTL represents a month during the tax quarter. The taxpayer enters their tax liability for that month in the quarter on the applicable line. Then, at the end of the tax quarter, the taxpayer computes the total liability for the quarter, e.g. by adding lines "Tax liability: Month 1" , "Tax liability: Month 2" , and "Tax liability: Month 3" , and showing the computed total on line "Total Liability for Quarter" .

  3. The amounts are always in dollars and cents.

  4. If the return was scanned by SCRIPS, any negative entry will generate a field error. For returns processed through ISRP, negative amounts are forced to appear as positive amounts.

  5. Invalid Condition: These fields are invalid if they are not all numeric.

  6. Correction Procedures: Compare the screen display and the return.

    If ... Then ...
    Transcribed incorrectly, Enter the correct amount from the return.
    A field error generates due to a negative amount, Blank the entry on the display screen.

3.12.13.27  (01-01-2015)
Section 04 (Form 941, 941-PR, and 941-SS)

  1. Section 04 contains address information of the tax filing for Forms 941, 941-PR, and 941–SS. The following fields provide the information in Section 04.

    Field
    Designator
    Field
    Length
    Title of Field Location on Return
    04CON 35 "Care of Name" Second name line in the Entity portion
    04FAD 35 Foreign Address The address, city, state, or ZIP Code fields in the Entity portion
    04ADD 35 Street Address Entity Portion
    04CTY 22 City Entity Portion
    04ST 2 State Entity Portion
    04ZIP 12 ZIP Code Entity Portion
  2. Section 04 will be present if a return in the entity portion or attachment indicates a change of address.

  3. This section cannot be present on a "G" coded return.

3.12.13.27.1  (01-01-2015)
♦Field 04CON ♦"Care of Name" - 35 Positions

  1. Field is located in the Entity Section of the return.

  2. Valid characters are alpha, numeric, ampersand, dash, percent (%) or a slash.

    Note:

    The first character of the "In Care of Name" must be alpha or numeric.

  3. Invalid Conditions: This field will be invalid if:

    1. The first position is a "%" and the second position is not blank, or

    2. The first position is blank, or

    3. The first character of the "In Care of Name" is not alpha or numeric, or

    4. There are two consecutive blanks between significant characters.

  4. Correction Procedures: Correct coding and transcription errors.

    If ... Then ...
    A "%" (percent) is in the first position, 1- Verify there is a blank in the second position.

    2- If not blank, enter a blank followed by the "In Care of Name" beginning with an alpha or numeric in Field 04CON.
    A blank is in the first position, 1- Delete the blank.

    2- Enter the "In Care of Name" beginning with an alpha or numeric in Field 04CON.
    The first character of the "In Care of Name" is not an alpha or numeric, 1- Verify the "In Care of Name" on the return.

    2- Enter the "In Care of Name" beginning with an alpha or numeric in Field 04CON.
    Two consecutive blanks are present between significant characters, Delete any unnecessary blanks in Field 04CON.

3.12.13.27.2  (01-01-2015)
Foreign Addresses- General Information

  1. Ogden Submission Processing Center (OSPC) will process returns with foreign/ international and U.S. Possession/ Territorial addresses.

  2. The determination of a foreign address is based only on the address of the return.

    • A foreign (international) address is any address not in one of the 50 U.S. states, or the District of Columbia.

    • All U.S. Possessions/Territories are considered foreign.

      Possession/Territory
      American Samoa
      Federated States of Micronesia
      Guam
      Marshall Island
      The Commonwealth of the Northern Marianna Islands
      Palau
      Puerto Rico
      U.S. Virgin Islands
  3. An Army Post Office (APO), Fleet Post Office (FPO), or Diplomatic Office (DPO) is not a foreign address. The Postal Service established new address requirements for APO/FPO/DPO addresses. If an address appears in the old APO/FPO/DPO format, such as "APO New York, NY 091XX" , convert to the new State code based on the ZIP Code as follows "APO AE 091XX" .

  4. All returns with a foreign address must be shipped to OSPC.

    1. SSPND 650.

    2. Attach Form 4227 with the notation "FORWARD TO OSPC" .

    3. Prepare Letter 86C to inform the taxpayer that the return has been sent to Ogden.

3.12.13.27.3  (01-01-2015)
Foreign Addresses- (OSPC Only)

  1. A foreign address will contain:

    • Street address or P.O. Box

    • City or town name

    • Other principal subdivision (i.e., province, state, county, etc.)

    • Postal code, if present

    • Foreign country

  2. Returns with addresses in the U.S. Possessions/Territories are considered to be a foreign return for processing purposes only and are entered in the same way as domestic addresses.

    1. A two-character alpha code must be entered in Field 04ST for the possession name.

      US Possession Abbreviation
      American Samoa AS
      Federated States of Micronesia FM
      Guam GU
      Marshall Islands MH
      The Commonwealth of the Northern Marianna Islands MP
      Palau PW
      Puerto Rico PR
      Virgin Islands (U.S.) VI
    2. A ZIP Code must be present for a U.S. Possession/ Territory. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries for the correct ZIP Code.

3.12.13.27.4  (01-01-2015)
♦Field 04FAD–Foreign Address♦

  1. Field 04FAD is located in the Entity Section of the return.

    • This field will contain an entry when there is a foreign address present on the return.

    • Field 04FAD should not be present on "G" coded short length returns.

  2. Invalid Conditions: Field 04FAD will generate as an error when any of the following conditions are present:

    • The first position is blank.

    • Any character follows two consecutive blanks.

    • There are more than 35 characters present in the field.

      Note:

      ISRP is instructed to input a pound sign (#) as the 35th character if there are more than 35 characters present for this field on the return.

  3. Correction Procedures: Correct all coding and transcription errors.

    If ... Then ...
    Field 04FAD is present. 1- GTSEC 04

    2– Ensure Field 04CTY contains a foreign country code and Field 04ST contains a "." (period/space)
    A foreign address is not present on the return 1- Verify the address on the return is not a foreign address.
    2- SSPND 610
    3 Renumber return with domestic DLN.
  4. If Form 8822, Change of Address or Form 8822-B Business Change of Address is attached to the return, compare the name and address information on the Form(s) 8822/8822-B to the return.

    If ... Then ...
    The information is the same Take no action and continue processing.
    The information is different 1– Detach Form 8822.

    2– Route to Entity Control on Form 4227 or follow local procedures.

    3– Notate on Form 4227, "CHANGE OF ADDRESS PER FORM 8822/8822–B"

    Note:

    The lead tax examiner is required to batch all Forms 8822/8822–B daily and hand carry to Entity Control for expedite processing.

3.12.13.27.5  (01-01-2015)
Field 04ADD - Street Address

  1. This field is located in the entity section of the return. This section will contain data, if the taxpayer has:

    • Corrected the address (e.g. by using a new address), or.

    • Checked the change of address box and entered a new address entry, (e.g., edited an address on a label).

  2. If both a mailing address and a location address are present and have been changed, Section 04 will not be present as these changes will have been input through IDRS.

  3. This section will not be present if Field 01CCC contains CCC "G" .

  4. Invalid Conditions: This field will be invalid if:

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

    2. Any character follows two consecutive blanks, or

    3. If the first position is not an alpha or numeric character.

    4. There are more than 35 characters in the field.

      Note:

      SCRIPS or ISRP are instructed to input a pound sign (#) as the 35th character if there are more than 35 characters present for this field on the return.

  5. Correction Procedures: Correct coding and transcription errors.

    If ... Then ...
    The first position is blank, All positions must be blank.
    Field 04ADD is present Fields 04CTY, 04ST, and 04ZIP must be present.
    Street address is in error and/or not available, and a valid Major City Code is present, Enter the city in Field 04CTY (spelled out, not in Major City format) and State code in Field 04ST.
    A good address cannot be located, Delete the address and revert back to INOLE.

3.12.13.27.6  (01-01-2015)
Field 04CTY City

  1. This field is located in the entity section of the return. Certain cities within each state are designated "Major Cities" , and assigned a special code of two alpha characters.

  2. ISRP or SCRIPS will enter the Major City code, as appropriate. This code represents the city within that state.

  3. It is transcribed on the Error Record with no intervening blanks or other characters in the city-state fields.

  4. Invalid Conditions: This field is invalid if:

    1. The first position is blank.

    2. Any character is present other than blank or alphabetic.

    3. Any character follows the first two adjoining blanks.

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

    5. Foreign country code is not valid or Field 04CTY contains "XX" .

  5. Correction Procedures: Correct any coding and transcription errors. Determine if a Major City Code is being used.

    If ... Then ...
    A Major City Code is used Field 04CTY must be present.
    Field 04CTY contains an error, Check to see if the Major city code is correct.
    Field 04CTY is not valid and a Major City Code cannot be determined, Input the entire city name.
    A Major City Code is not used and Field 04CTY is present, Field 04ST must be present.
    A foreign address is shown on the return, Enter appropriate foreign country code in Field 04CTY from Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.
    Field 04CTY contains an incorrect country code or "XX" Enter appropriate foreign country code in Field 04CTY from Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

3.12.13.27.7  (01-01-2015)
Field 04ST

  1. The field is located in the entity section of the return.

  2. Invalid Condition: This field is invalid if it is not one of the State Abbreviations, APO/DPO/FPO codes, or U.S. Possessions shown in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

  3. Correction Procedures: Correct any coding and transcription errors. For a list of valid State Codes, see Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

    If ... Then ...
    Unable to perfect DLSEC 04.
    Form 8822, Change of Address is attached to the return Compare the name control, EIN, address, City, State and ZIP Code information on the Form 8822 to the return.

3.12.13.27.8  (01-01-2015)
Field 04ZIP– ZIP Code

  1. This field is located in the entity section of the return.

  2. Invalid Condition: This field is invalid if not all numeric or five numerics followed by four blanks.

  3. Correction Procedures: Compare the screen display and the return.

    If ... Then ...
    Transcribed incorrectly, Enter the correct entry from the return or the attachments. Only the first five digits are required to be entered if nine digits are present.
    A valid ZIP Code is not available from the return or attachments, Research using INOLE or use Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries to determine the first 3 digits of a valid ZIP code for the Major City.
    There is no record using research, Use DLSEC 04.
    The Major City is not listed in Document 7475, or the first 3 digits cannot be determined, 1– Enter the first 3 digits of the State shown in the address. Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, for the correct digits for the State.

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

3.12.13.28  (01-01-2015)
Sections 05, 06 and 07 (Form 941, 941-PR, 941-SS)

  1. The following sections provide information concerning Form 941, 941-PR and 941-SS, Section 05, Form 941-B. See Exhibit 3.12.13-5, for a current Form 941-B with field designators.

    Field
    Designator
    Field
    Length
    Title of Field Location on Return
    05A01 14 Daily Tax Liab. Schedule B (or for Form 941-PR, Schedule B (PR))
    1st Months liabilities are Fields 05A01 - 05A31.
    2nd Months liabilities are Fields 06B01 - 06B30
    3rd Months liabilities are Fields 07C01 - 07C31.
    05A02 14 Daily Tax Liab.
    05A03 14 Daily Tax Liab.
    05A04 14 Daily Tax Liab.
    05A05 14 Daily Tax Liab.
    05A06 14 Daily Tax Liab.
    05A07 14 Daily Tax Liab.
    05A08 14 Daily Tax Liab.
    05A09 14 Daily Tax Liab.
    05A10 14 Daily Tax Liab.
    05A11 14 Daily Tax Liab.
    05A12 14 Daily Tax Liab.
    05A13 14 Daily Tax Liab.
    05A14 14 Daily Tax Liab.
    05A15 14 Daily Tax Liab.
    05A16 14 Daily Tax Liab.
    05A17 14 Daily Tax Liab.
    05A18 14 Daily Tax Liab.
    05A19 14 Daily Tax Liab.
    05A20 14 Daily Tax Liab.
    05A21 14 Daily Tax Liab.
    05A22 14 Daily Tax Liab.
    05A23 14 Daily Tax Liab.
    05A24 14 Daily Tax Liab.
    05A25 14 Daily Tax Liab.
    05A26 14 Daily Tax Liab.
    05A27 14 Daily Tax Liab.
    05A28 14 Daily Tax Liab.
    05A29 14 Daily Tax Liab.
    05A30 14 Daily Tax Liab.
    05A31 14 Daily Tax Liab.
    05A> 16 Total Tax Liability Month 1
    (Computer Generated)

3.12.13.28.1  (01-01-2015)
Fields 05A01 through 07C31

  1. These fields are located on the Schedule B (or for Form 941-PR, Schedule B (PR)) and are shown as dollars and cents.

  2. Invalid Condition:

    1. If they are not all numeric, or

    2. For tax periods 199303 and prior, or

    3. If there is an entry in day 29 (in a non-leap year) or 30 for February, or an entry in day 31 for April, June, September and/or November.

    4. If the entry is a negative entry.

  3. Correction Procedures: Compare the screen display against the return. Also verify the tax period.

    If ... Then ...
    Transcribed incorrectly, Enter the correct amount or tax period from the return.
    There is a negative entry on any day during the month (line 1 through the last day of the month),
    1. Review the Schedule B to determine whether the entry was captured correctly as a negative.

    2. If the Schedule B shows the entry as a negative, blank the entry on the screen display.

    3. If the Schedule B shows the entry not as a negative, correct the entry on the screen display.

    4. After all corrections, transmit.

    There is an entry in day 29, 30 or 31 for the month of February or an entry in day 31 for one of the following months: April, June, September or November, 1– Move the entry into the last valid day of the month.

    2– There is an entry in that field, add the last two entries together and place the results in the last valid day.

3.12.13.29  (01-01-2015)
Form 941 Consistency/Math Error Processing (Priority IV)

  1. This section provides procedures for correcting consistency and math errors (Priority IV) for Form 941.

  2. For an explanation of these errors, see IRM 3.12.13.5.4.

    Caution:

    Whenever an error occurs due to apparent misplaced entry by the taxpayer, correct the misplaced entry.

    Example:

    Taxpayer enters total tax figure on line 8 Form 941 for a 2011 return. Line 10 is the total tax line for 2011 not line 8 as on previous revisions. In this case EC 100 would generate and you would remove the amount reported in Field 02SP. This should clear the error and we will not issue a notice that would double the tax reported.

3.12.13.29.1  (01-01-2015)
♦Error Code 001♦

  1. Fields Displayed:

    Field Designator Field Name Length
    01TXP Tax Period 6
    01RCD Received Date 8
    01CCC Computer Condition Code 10
  2. Invalid Conditions: Error Code 001 will generate when any of the following conditions are present:

    1. Computer Condition Code "G" is not present, and the processing date is equal to or more than 2 years and 10 months after the Return Due Date or received date (whichever is later) and CCC "W" is not present.

    2. Computer Condition Code G is present, and the processing date is equal to or more than 2 years and 10 months after the Return Due Date and CCC "W" is not present, or

    3. On any other return, if the processing date is less than two years after the Return Due Date and CCC "W" is present

  3. Correction Procedures:

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

    2. Do not send the following returns to Statute Control for clearance. Instead, enter "W" in Field 01CCC and continue processing:
      Any return secured by Compliance (i.e., 6020(b)),
      Any return secured by Examination /Collections,
      Any return with a transaction code (TC) 59X,
      Any return with ICS (Integrated Collection System) noted on the face of the return,
      Any return that is a Substitute for Return prepared by Examination ("SFR" in the margin) with Form 13133 (Expedite Processing Cycle) attached.

  4. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

    If ... Then ...
    Field 01RCD is blank, 1– Determine the received date, as shown in IRM 3.12.13.24.4, when one is needed but is not stamped on the return or a valid handwritten received date is not present.
    CCC "W" was entered incorrectly, Delete CCC "W" from Field 01CCC.
    The return has a stamp that indicates a previous clearance by Statute Control within the last ninety days Enter CCC "W" in Field 01CCC.

    Note: Do not send the return to Statute Control
    The return is not stamped by Statute Control within the last ninety days 1– SSPND 310.

    2– Prepare Form 4227 to route to Statute Control.

    Caution:

    Timely filed returns for all quarters of Form 941, 941-PR, or 941-SS have the same assessment expiration date. For example, timely filed Form 941 returns for 201003, 201006, 201009 and 201012 have a normal statute expiration date of April 15, 2014, e.g. three years from April 15th, 2011.

  5. Suspense/Rejects Procedures:

    1. When Statute Control returns the cleared document, enter "W" in Field 01CCC. Continue processing.

    2. If Statute Control requests the record to be voided to them, SSPND 640.

3.12.13.29.2  (01-01-2015)
♦Error Code 002♦

  1. Fields Displayed:

    Field Designator Field Name Length
    CL Clear Code 1
    01NC Name Control/Check Digit 4
    01NC> Name Control- Computer Generated 4
    01EIN Employer Identification Number 9
    01TXP Tax Period 6
    04CON "In Care of" Name 35
    04FAD Foreign Address 35
    04ADD Street Address 35
    04CTY City 22
    04ST State 2
    04ZIP Zip Code 12
  2. Invalid Condition: EC 002 will generate when the name control mismatched against the National Account Profile (NAP) or Entity Index File (EIF).

  3. Correction Procedures:

    1. Before taking any additional research to resolve Error Code 002, drop the cursor to the bottom of the screen and transmit. This will ensure that any prior changes to the name control have posted to the National Account Profile (NAP). If Error Code 002 reappears, continue with the remainder of the correction procedures.

    2. When corrections are made to Field 01NC or Field 01EIN, the computer will validate the entries with the NAP and reset the Online Entity (OLE) indicators as appropriate upon transmitting the ERS screen.

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

    4. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

    5. Refer to all the following research instructions in this EC before taking any action.

    6. If Field 01NC and the Name on the return or attachments are the same but differ from the underprint in Field 01NC, research INOLES to determine the correct Name.

      If ... Then ...
      The name on the return or attachment matches the name control on INOLES, Bring up underprint.
      The name control on INOLES is different from the Name on the return or attachment, Research NAMEE/NAMEB for a new EIN.
    7. If a new EIN is located, verify the name control using CC INOLES.

      If ... Then ...
      The name control on INOLES matches the Name on the return or attachment 1- Ensure that the entity information matches the return.
      2- Overlay Field 01EIN with the new EIN from NAMEE/NAMEB. When the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return.

      Note:

      Do not send Letter 3875C if three or less digits of the EIN are transposed, different, or missing, or when INOLES indicates the account has been "merged to" or "merged from" or when the taxpayer uses a Social security number (SSN) on a BMF return, and your research has determined there is no entity on Master File with that number sequentially entered in EIN format.

      Multiple EINs are located, 1- SSPND 320 to Entity Control. 2- Prepare Form 4227 with the notation MULTIPLE EINS
      INOLES indicates a "Merge To" (MT) EIN, Research the "MT" EIN on INOLES
      The "MT" EIN matches the entity on the return or attachment Enter the "MT" EIN in Field 01EIN.

      Note:

      Do not send Letter 3875C on "merged to" or "merged from" cases.

      The "MT" EIN does not match the entity on the return or attachment, SSPND 320 to Entity Control.
    8. If the Name on the return or attachment does not agree with the name control on INOLES or there is an indication of a name change on Form 941 941-PR, or 941-SS, research ENMOD for a new name.

      If ... Then ...
      The name control on ENMOD matches the Name on the return or attachment, Enter "C" in the Clear Code Field.
      The name control on ENMOD or INOLES does not match the Name on the return or attachment, 1. SSPND 320 to route the return to Entity.
      2. Attach Form 4227 with the notation "NO RECORD"
    9. If the Name change has not been made, research ENMOD for a pending TC 013.

      If ... Then ...
      A pending TC 013 is present, Enter "C" in the Clear Code Field.
      A pending TC 013 is not present, 1. SSPND 320 to route to Entity.
      2. Attach Form 4227 with the notation "REQUEST NAME CHANGE (TC 013)" .
  4. Suspense/Rejects Procedures:

    1. If there is an indication that Entity has assigned an EIN to the return, determine the Entity Assignment Date.

      If ... Then ...
      The Entity Assignment Date is past the Return Due Date and received date, 1. GTSEC 01.
      2. Enter the Entity Assignment Date in Field 01CRD.
      The Entity Assignment Date is not past the Return Due Date Continue Processing
    2. Research IDRS using CC BMFOL to determine if payments posted incorrectly:

      If ... Then ...
      The payment posted to the wrong EIN, 1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module.
      2. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION RELEASE FREEZE"
      3. Write, "FORM 3465 PREPARED" on return to the left of the Entity section.
      4. Enter CCC "X" in Field 01CCC.
      The payment posted correctly, 1. Enter the correct EIN in Field 01EIN and on the return.
      2. Enter "C" in the Clear Code Field
      Payment cannot be located, Enter "C" in the Clear Code Field

3.12.13.29.3  (01-01-2015)
♦Error Code 004♦

  1. Fields Displayed:

    Field Designator Field Name Length
    CL Clear Code 1
    01NC Name Control 4
    >>> Name Control Underprint 4
    01EIN Employer Identification Number 9
  2. Invalid Conditions: Error Code 004 will generate when:

    1. The EIN is not present at Master File

    2. The Entity Index File (EIF) and the NAP were not accessed or were not operational, causing a blank underprint in Field 01NC.

  3. Correction Procedures:

    1. Before taking any additional research to resolve Error Code 004, drop the cursor to the bottom of the screen and transmit. This will ensure that any prior changes to the name control/EIN have posted to the NAP. If Error Code 004 reappears, continue with the remainder of the correction procedures.

    2. When corrections are made to Field 01NC or Field 01EIN, the computer will validate the entries with the NAP and reset the OLE indicators as appropriate upon transmitting the ERS screen.

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

    4. Compare the displayed fields with the return and any attachment. If incorrect, overlay the screen with the correct information.

    5. Refer to all the following research instructions in this EC before taking any action.

    6. If Field 01NC and the Name on the return or attachments are the same but differ from the underprint in Field 01NC, research INOLES to determine the correct name control.

      If ... Then ...
      The Name on the return or attachment matches the name control on INOLES Bring up the underprint.
      The name control on INOLES is different from the Name on the return or attachment, Research NAMEE/NAMEB for a new EIN.
    7. If a new EIN is located, verify the name control using CC INOLES.

      If ... Then ...
      The name control on INOLES agrees with the Name on the return or attachment, 1. Ensure that the Entity information matches the return.
      2. 4) Overlay Field 01EIN with the new EIN from NAMEB/NAMEE. When the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return

      Note:

      Do not send Letter 3875C if three or less digits of the EIN are transposed, different or missing, or when INOLES indicates the account has been "merged to" or "merged from" or when the taxpayer uses a Social security number (SSN) on a BMF return, and your research has determined there is no entity on Master File with that number sequentially entered in EIN format.

      Multiple EINs are located, 1- SSPND 320 to Entity Control.
      2- Prepare Form 4227 with the notation "MULTIPLE EINS" .
      INOLES indicates a "Merge To" (MT) EIN, Research the "MT" EIN on INOLES
      The "MT" EIN matches the entity on the return or attachment, Enter the "MT" EIN in Field 01EIN.
      The "MT" EIN does not match the entity on the return or attachment SSPND 320 to Entity Control.
    8. If the Name on the return or attachment does not agree with the name control on INOLES or there is an indication of the name change on Form 941/941-PR/941-SS, research ENMOD for the new name.

      If ... Then ...
      The name control on ENMOD agrees with the Name on the return or attachment, Enter a "C" in the Clear Code Field.
      The name control on ENMOD or INOLES does not agree with the Name on the return or attachment, 1- SSPND 320 to route to Entity Control.
      2- Attach Form 4227 with the notation "NO RECORD."
    9. If the Name change has not been made, research ENMOD for a pending TC 013.

      If ... Then ...
      A pending TC 013 is present, Enter C in the Clear Code Field.
      A pending TC 013 is not present 1. SSPND 320 to route to Entity Control.
      2. Attach Form 4227 with the notation "REQUEST NAME CHANGE"
  4. Suspense/Rejects Procedures:

    1. If there is an indication that Entity Control has assigned an EIN to the return, determine the Entity Assignment Date.

      If ... Then ...
      The Entity Assignment Date is past the Return Due Date and received date. 1- GTSEC 01
      2- Enter the Entity Assignment Date in Field 01CRD.
      The Entity Assignment Date is not past the Return Due Date and received date. Continue Processing.
    2. Research IDRS using CC BMFOL to determine if payments posted incorrectly.

      If ... Then ...
      The payment posted to the wrong EIN, 1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module.
      2. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION RELEASE FREEZE"
      3. Write, "FORM 3465 PREPARED" on return to the left of the Entity section.
      4. Enter CCC "X" in Field 01CCC.
      The payment posted correctly, 1. Enter the correct EIN in Field 01EIN and on the return.
      2. Enter "C" in the Clear Code Field
      Payment cannot be located, Enter "C" in the Clear Code Field

3.12.13.29.4  (01-01-2015)
♦Error Code 005♦

  1. Fields Displayed:

    Field Designator Field Name Length
    CL Clear Code 1
    01TXP Tax Period 6
    01RCD Received Date 8
  2. Invalid Condition: The year-month of the processing date is later than the tax period plus 6 months and the received date is not present.

  3. Correction Procedures:

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

    2. Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information.

    3. A received date must be in Field 01RCD if the return is not timely filed.

      If ... Then ...
      There are multiple dates on the return, Enter the earliest date.

      Exception:

      Do not use a received date in Field 01RCD that is prior to the end of the tax period.

      No received date is present, e.g. no received date is stamped on the return, or when a valid hand written received date is not present. 1- Determine the received date. See IRM 3.12.13.24.4 for determining the correct date.

3.12.13.29.5  (01-01-2015)
♦Error Code 006♦

  1. Fields Displayed:

    Field Designator Field Name Length
    RMIT> Remittance Amount 15
    01TXP Tax Period 6
    01RCD Received Date 8
  2. Invalid Condition: The error will generate when the remittance is received with return, but received date is not present.

  3. Correction Procedures:

    1. Compare the screen display and the return.

      If ... Then ...
      Transcribed incorrectly, Enter the correct entry from the return.
      The received date is missing or illegible,

      Note:

      When multiple returns are received in an envelope, the envelope is attached to the first return to establish a received date. Subsequent returns in the envelope should have the received date stamped or edited to the upper left corner of each return.

      1- Determine the received date using the instructions in IRM 3.12.13.24.4.
      Multiple dates are on the return, Use the earliest date as the received date.

3.12.13.29.6  (01-01-2015)
♦Error Code 007♦

  1. Fields Displayed:

    Field Designator Field Name Length
    01TXP Tax Period 6
    01RCD Received Date 8
    01CCC Computer Condition Code 10
  2. Invalid Condition: The received date is earlier than the first day of the tax period.

  3. Correction Procedures:

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

    2. Compare displayed fields with the return. If incorrect, overlay the screen with the correct information.

      If ... Then ...
      The Received Date is invalid and it appears that the incorrect year was used (i.e., 20110115 instead of 20120115), and other information (e.g. Julian date, postmark date, and/or signature date) indicates the received date should be a current year. Change the received date year to the current year in Field 01RCD.
      The return is an early filed "Final" return 1. Review the Tax Period on the return. If the Tax Period month is June, September, or December, e.g. other than March (the first quarter), and the day the examiner is resolving the error condition is at least the first day or later into the Tax Period quarter shown on the return, delete the received date.

      Example:

      Form 941 returns showing the December quarter can be processed beginning October 1. It is the first day of the October through December quarter.


      2. Enter an "F" in Field 01CCC.
      The return is not an early filed "Final" return, (e.g. transcription error in tax period or year of the received date, etc.) 1. Delete the received date on the screen, and circle the received date on the return.
      2. Delete the "F" in 01CCC. and circle it out on the return.
      It appears the return is timely filed,

      Note:

      Check the signature and Julian date and determine if they agree with the timely filing.

      Delete the received date.
      The return is for the current quarter, but not timely filed, e.g. Julian date supports a non-timely filing. Follow received date procedures and input the Julian date minus 10 days.
      There is no clear indication that the return is final, Treat as unprocessable and initiate correspondence for clarification of the tax period. Suspend in Action Code 211.
  4. Suspense/Rejects Procedures:

    1. For responses to correspondence, follow the If/Then table.

      If ... Then ...
      The taxpayer replies that the return is an early filed "Final" return, Review the Tax Period on the return. If the Tax Period month is June, September, or December, e.g. other than March (the first quarter), and the day the examiner is resolving the error condition is at least the first day or later of the Tax Period quarter shown on the return, delete the received date. Continue to process.

      Example:

      Form 941 returns showing the December quarter can be processed beginning October 1. It is the first day of the October through December quarter.


      2. Enter an "F" in Field 01CCC.
      The taxpayer replies that the return is not an early filed "Final" return, (e.g. transcription error in tax period or year of the received date, etc.) Delete the received date on the screen, and circle the received date on the return. Also, delete the "F" in 01CCC. and circle it out on the return. Continue to process.
      The taxpayer fails to respond or the response is inadequate, 1. Enter "3" in Field 01CCC.
      2. Continue to process.

3.12.13.29.7  (01-01-2015)
♦Error Code 010♦

  1. Fields Displayed:

    Field Designator Field Name Length
    01CCC Computer Condition Code 10
    01SIC Schedule Indicator Code 1
    01ARN Applied Refund Indicator 1
    0101 Number of Employees  
    S02DP Section 02 Present  
    S03NP Section 03 Not Present  
    S04DP Section 04 Present  
    S05NP Section 05 Not Present  
    05A> Monthly Liability Computer Generated 15
    S06NP Section 06 Not Present  
    06B> Monthly Liability Computer Generated 15
    S07NP Section 07 Not Present  
    07C> Monthly Liability Computer Generated 15
  2. Invalid Condition: CCC "G" is present and fields other than 01NC, 01EIN, 01TXP, 01RCD, 01CCC, and 01CRD are present.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding and transcription errors

    2. Compare displayed fields with the return. If incorrect, overlay the screen with the correct information.

    3. Determine if CCC "G" was input correctly.

      If ... Then ...
      Return indicates amended, revised, supplemental, corrected or superseding, Research the applicable Command Code(s) BRTVU, BMFOL, SUMRY, and/or TXMOD to determine if information is exactly the same as the posted return.
      All information is not the same, 1. Process the return with CCC G.
      2. DLSEC to delete all sections, except Section 01.
      3. Delete the invalid entries that are present in Section 01. GTSEC if necessary.
      All information is exactly the same, SSPND 640 and route to Rejects
      A return is not posted for the tax period and the return is an amended return, Continue processing as an amended return.
      A return is not posted for the tax period and the return is not amended; (i.e., "G" coded in error) 1– Enter all data in Sections 02 through 07.

      2– Ensure that Section 01 fields are correct.

      3– Delete the "G" in Field 01CCC.

      Note:

      When deleting CCC "G" and the section required is shown as being present, no further verification of section entries is needed.

3.12.13.29.8  (01-01-2015)
Error Code 011

  1. Fields Displayed:

    Field Designator Field Name Length
    RMIT> Remittance Amount Computer Generated 15
    01RCD Received Date 8
    01CCC Computer Condition Codes 10
    01ARN Applied Refund Indicator 15
    S02NP Section 02 Not Present  
  2. Invalid Condition: An RPS amount or a remittance amount is present, and there is no data in Section 02 and a valid CCC "G" is not present.

  3. Correction Procedures: Compare the screen display and the return.

    If ... Then ...
    The record is to be edited with a CCC "G" , 1– Section 02 is not necessary. Enter the CCC "G" in Field 01CCC.

    2– Verify that the received date is present, and enter it in Field 01RCD.
    Data is present on the return for the fields in Section 02, Use CC GTSEC 02 and enter the appropriate data in those fields on the screen.
    There is no money amount in the RMIT> field, and an RPS/ISRP indicator is present, 1– Use CC GTSEC to view Section 2.

    2– Enter $.01 in Field 02TT, Total Tax-Taxpayer.

    3– Continue processing.
    No data is present and you are unable to determine from the return or attachments where to apply the remittance amount, 1– Suspend the record with SSPND 355. The Rejects unit will research using IDRS to secure the data and transfer the credit to the appropriate tax class or module.

    2– If not found, correspond with the taxpayer with an explanation following normal correspondence procedures. Suspend the record with Action Code 21X.

    3– Rejects Unit will transfer the credit(s) to the appropriate tax class or module per reply.
    You are unable to determine where to apply the excess remittance, Leave Field 01ARN blank. The excess remittance will be applied to the next tax period.

3.12.13.29.9  (01-01-2015)
♦Error Code 014♦

  1. Fields Displayed:

    Field Display Field Name Length
    04CON In Care of Name 35
    04FAD Foreign Address 35
    04ADD Street Address 35
    04CTY City 22
    04ST State 2
    04ZIP Zip Code 12
  2. Invalid Conditions: This error will generate when any of the following conditions are present:

    1. If the Street Address is present, Fields 04CTY and 04ST must be present, unless a Major City Code is used.

    2. If a Major City Code is used, Field 04ADD must be present.

    3. Field 04CTY must be present. If the city is not in the Major City format, Field 04ST must be present. Field 04ADD can be blank.

    4. A Major City Code is used and Field 04ST is present.

  3. Correction Procedures:

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

    2. Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information.

    3. Research any of the following for valid address information: Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries and/or INOLES, NAMEB, NAMEE or ENMOD.

    If ... And ... Then ...
    A Major City Code is present, No street address is available, Enter the city in Field 04CTY (spelled out, not in Major City format) and state code in Field 04ST.
    The Major City Code is correct The state is present, DLSEC to delete Field 04ST.
    The ZIP Code or the address cannot be corrected from the information on the return,   Use DLSEC to delete Section 04.

3.12.13.29.10  (01-01-2015)
♦Error Code 015♦

  1. Fields Displayed:

    Field Display Field Name Length
    04CON In Care of Name 35
    04FAD Foreign Address 35
    04ADD Street Address 35
    04CTY City 22
    04ST State 2
    04ZIP Zip Code 12
  2. Invalid Condition : Error Code 015 will generate when any of the following conditions are present:

    • Field 04ST has an entry other than ". (period/space) when the foreign address Field 04FAD is present."

    • Field 04ZIP has an entry when the foreign address Field 04FAD is present.

  3. Correction Procedures:

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

    2. Compare displayed fields with the return. If incorrect, overlay the screen with the correct information.

      If ... Then ...
      A foreign address is present in Field 04FAD 1- Field 04ST must contain "." (period/space)
      2– Delete any entry in Field 04ZIP if present.
      A foreign address is not present in Field 04FAD Check return for foreign address.
      A foreign address is present on the return 1– Enter the foreign address in Field 04FAD.

      Note:

      If additional space is required, continue entering the address in Field 04ADD



      2– Field 04CTY must contain the appropriate foreign country code. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries
      Exception: Use the country code based on the province in Field 04FAD. if the foreign address is from Canada and the address contains a province name or abbreviation
      3– Field 04ST must contain "." (period/space).
      4– Delete any entry in Field 04ZIP.
      A foreign address is not present on the return 1- Verify the address on the return is not a foreign address.
      2– SSPND 610
      3- Renumber return with domestic DLN.

3.12.13.29.11  (01-01-2015)
♦Error Code 016♦

  1. Fields Displayed:

    Field Display Field Name Length
    04CON In Care of Name 35
    04FAD Foreign Address 35
    04ADD Street Address 35
    04CTY City 22
    04ST State 2
    04ZIP Zip Code 12
  2. Invalid Condition: Error Code will generate when the ZIP Code is inconsistent with the Major City or State Code.

  3. Correction Procedures:

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

    2. Compare displayed fields with the return. If incorrect, overlay the screen with the correct information.

    3. Research Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries or INOLES, NAMEB/NAMEE, and/or ENMOD for valid Zip Code information.

    If ... And ... Then ...
    You are unable to determine a valid ZIP code from the return or an attachment   Enter the valid ZIP Code found through research in Field 04ZIP.
    The address is in a major city A Major City Code can be determined, Enter Major City Code in Field 04CTY. See Document 7475.
    The address is in a major city A Major City Code cannot be determined 1- Enter the name of the city in Field 04CTY.
    2- Enter the State Code in Field 04ST.
    The address is not in a major city,   1. Enter the appropriate State abbreviation in Field 04ST.
    2. Enter the ZIP Code in Field 04ZIP.
  4. If only the three digits of the ZIP Code can be determined, enter "01" in the fourth (4th) and (5th) positions.

    If ... And ... Then ...
    You are unable to determine a valid ZIP code from the return or an attachment   Enter the valid ZIP Code found through research in Field 04ZIP.
    The address is in a major city A Major City Code can be determined, Enter Major City Code in Field 04CTY. See Document 7475.
    The address is in a major city A Major City Code cannot be determined 1- Enter the name of the city in Field 04CTY.
    2- Enter the State Code in Field 04ST.
    The address is not in a major city,   1. Enter the appropriate State abbreviation in Field 04ST.
    2. Enter the ZIP Code in Field 04ZIP.
  5. APO/FPO/DPO Addresses: An Army Post Office (APO), Diplomatic Post Office (DPO) or Fleet Post Office (FPO) is not a foreign address. The U.S. Postal Service established new address requirements for APO/DPO/FPO addresses. If an address appears in the old APO/FPO format, convert to the new State Code abbreviation based on the ZIP Code chart below:

    Zip Code State Code
    340 AA
    090 - 098 AE
    962 - 966 AP

3.12.13.29.12  (01-01-2015)
Error Code 018

  1. Fields Displayed:

    Field Display Field Name Length
    CL Clear Code 1
    01TXP Tax Period 6
    02ITW Total Income Tax Withheld 15
    02QW Current Year's Income Tax Withheld 15
    02SW Special Additions to Federal Income Tax 15
    02SS Special Additions to SS and Medicare Tax 15
    02TA Total Adjustments 15
    02TA> Total Adjustments Computer 15
  2. Invalid Condition: Field(s) 02QW or 02SW appear on a first quarter return for tax period 200812 or prior.

  3. Correction Procedures:

    1. Compare the screen display and the return.

      Note:

      Error Code 018 generates only if the tax period of the return began on or before December 31, 2008, and if the return being filed is a Form 941, Revision 2005 through 2008.

      If ... Then ...
      The taxpayer entered an amount on line(s) 7d through 7f, and the return is for a period 200812 or prior, Enter Action Code 640 to have the return voided. After the DLN has been voided route the return with Form 4227, to AM.

      Caution:

      We can no longer allow forms 941 with Form 941C attached to be processed. Send complete file to AM.

3.12.13.29.13  (01-01-2015)
Error Code 022

  1. Fields Displayed:

    Field Designator Field Name Length
    0204 Exempt from SS and Medicare Tax Indicator 1
    02SSW Taxable SS Wages 15
    02SST Taxable SS Tips 15
    02MED Taxable Medicare Wages and Tips 15
    02XMT Additional Taxable Medicare Wages and Tips 15
    02TSM Total SS and Medicare Taxes 15
    02TSM> Total SS and Medicare Taxes 15
    02EW Exempt Wages/Tips Paid Qualified Employees 15
    02TW Tax on Exempt Wages/Tips Paid Qualified Employees 15
    02TT Total Tax Taxpayer 15
  2. Invalid Condition: The total amount of Fields 02SSW and 02SST is greater than the Field 02MED figure.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding and transcription errors. Compare the screen entry to the return, and apply the procedures from the tables below:

      If ... And ... Then ...
      Fields 02SSW, 02SST, and 02MED are the same,   1 - Delete the Field 02SST on the ERS screen.
      2 - If EC 048 generates enter a "C" in the Clear Code Field. If Error Code 080 generates, enter the underprint amount held in Field 02TSM> to Field 02TSM.

      3– If Error Code 100 generates, send TPNC 07.

      Note:

      If the Form 941 is being filed as "IRC 6020(b)" , follow the procedures in the table, "IRC 6020(b) Procedures" below.

      Fields 02SSW and 02SST are the same amount Field 02MED is blank, e.g. contains no written or numerical entry, 1. Delete the entry in 02SST, and enter that amount in 02MED.

      2. If Error Code 080 generates, enter the underprint amount of Field 02TSM.> to 02TSM.
      3. If Error Code 100 generates, send TPNC07.
      The taxpayer entered a positive entry in column 2 for any line(s) 5a, 5b, and/or 5c, Left line(s) 5a, 5b, or 5c, column 1 blank, "Back-in" to the correct wage amount ( divide line amounts by .133 if 2011 or 2012 account or .153 for all other periods) to determine if the taxpayer incorrectly transcribed or transposed figures. Then, as needed, change the amount(s) in Fields 02SSW, or 02SST, or 02MED.
      The taxpayer entered a negative entry in column 1 for any line(s) 5a, 5b, and/or 5c,   1– Consider any negative entry in column 1 or 2 for any line(s) 5a, 5b, and/or 5c as a positive entry.

      2– The change of the sign in 1 may result in another Error Condition(s) to display after input:

      Note:

      After performing the above action continue to resolve the error by following the applicable procedures in the rows below.

      Field 02XMT has an entry Field 02MED is blank or zero and Field 02SSW and/or Field 02SST are the same or less than Field 02XMT Remove entry in Field 02XMT and enter in Field 02MED.
      The total of Fields 02SSW and 02SST is greater than the Field 02MED entry, The amounts in Field(s) 02SSW, 02SST, and 02MED are not the same, Review the return (including the box on line 4) and any attachments for a sufficient explanation, (such as):
      • Dependents under 18 years of age,

      • Social Security or Medicare wages exempt,

      • 6020(b)

        Note:

        For 6020(b) returns, ensure a CCC 4 is present in Field 01CCC.

      A sufficient explanation is given,   Divide the amount in Field 02TSM by .133 for tax periods in 2011 and 2012 and .153 for all other periods and enter the result in Field 02SSW, and in Field 02MED.
      There is no explanation shown on the return or an attachment, or the explanation is not satisfactory, There is a difference of less than ≡ ≡ ≡ between the total of Fields 02SSW and 02SST compared to 02MED,
      1. Enter the total of column 1, lines 5a and 5b to Field 02MED.

      2. Apply the following procedures:
        - If Error Code 080 displays, enter Field 02TSM> underprint.

        - If Error Code 100 displays, enter TPNC 07.

      There is no explanation shown on the return or an attachment, or the explanation is not satisfactory, There is a difference ≡ ≡ ≡ ≡ ≡ ≡ or more between the total of Fields 02SSW and 02SST compared to 02MED and line 2 entry is equal or less than line 5a and 5b Enter the total of lines 5a and 5b to Field 02MED. See the instructions above if the error ripples to EC 080 and/or EC 100
      There is no explanation shown on the return or an attachment, or the explanation is not satisfactory, There is a difference ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more between the total of Fields 02SSW and 02SST compared to 02MED and line 2 entry is higher than the total of Fields 02SSW and 02SST, Correspond with the taxpayer using Letter 21C.
    2. For 6020(b) procedures see below:

      If ... Then ...
      The return was prepared under Section 6020(b) by a Revenue Officer. Review the return to determine if it was signed by the Revenue Officer.
      • If the return is unsigned, SSPND AC640 to have the DLN cancelled. After the DLN is cancelled, route the return as instructed in IRM 3.12.13.21.

      • If the return is signed, check the return for any transcription errors and correct the return, as needed. Do not correspond with the taxpayer.

        Note:

        The Total Tax on the return cannot change. The Total Tax amount must be assessed as submitted by the Revenue Officer.

      A CCC 4 is not present in 01CCC, Enter CCC 4 in Field 01CCC.
      An IRC 6020(b) return is incomplete or blank on lines 5a, 5b, or 5c, Divide the amount in Field 02TSM by .153 or .133 for 2011 or 2012 returns and enter the result in Field 02SSW, and in Field 02MED.
    3. Suspense/Rejects Procedures:

      If ... Then ...
      You receive a correct reply from the taxpayer, Enter the amounts to the applicable Fields on the screen display. Process as needed.
      You receive no reply, or there is an insufficient reply, 1– Enter the greater of Field 0202 or the total of Fields 02SSW and 02SST to 02MED.

      Exception:

      If the total of Fields 02SSW and 02SST is greater than 0202, then also enter the computed total of Fields 02SSW and 02SST to Field 0202.

      2- If Error Code 080 generates, enter the Field 025> underprint.

      3– If Error Code 100 displays, and the Total Tax-Computer is greater Total Tax-Taxpayer, send TPNC 27 and 07. However, if the Total tax Computer is less than the Total tax-Taxpayer, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡


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