3.12.13  Employment Tax Returns (Cont. 2)

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

3.12.13.29.14  (01-01-2014)
Error Code 028

  1. Fields Displayed:

    Field Display Field Name Length
    01RCD Received Date 6
    01CCC Computer Condition Code 10

  2. Invalid Condition: A CCC G is present and:

    1. Another CCC other than "W" or "3" is present, or

    2. CCC "W" and/or "3 is present and the 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.
      CCC "R" , "7" , or "D" is present, and the received date is not present, Enter the received date in Field 01RCD
      CCC "R" , "7" , or "D" is not on the return, Delete the CCC "R" , "7" , or "D" from Field 01CCC.
      The return is not a "G" coded return, (i.e., no indication that the return is "Amended" , "Revised" , "Superseding" , "Duplicate" ), and nothing indicates that this is other than the first return filed, 1- Use GTSEC 02 and enter the data in the fields for Section 02 and transmit.

      2– When Error Code 010 generates, enter the appropriate field and delete Field 01CCC.
      The return is correctly "G" coded,

      Note:

      Refer to Error Code 010.

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

3.12.13.29.15  (01-01-2014)
Error Code 044

  1. Fields Displayed:

    Field Display Field Name Length
    CL Clear Code 1
    0202 Wages Tips and Other Compensation 15
    02ITW Total Income Tax Withheld 15
    02SSW Taxable SS Wages 15
    02SST Taxable SS Tips 15
    02MED Taxable Medicare Wages and Tips 15
    02QTX Section 3121 (q) Notice and Demand 15
    02XMT Additional Taxable Medicare Wages and Tips 15
    02EW Exempt Wages/Tips Paid Qualified Employees 15
    02TW Tax on Exempt Wages/Tips Paid Qualified Employees 15
    02BA Total Taxes Before Adjustments 15
    02BA> Total Taxes Before Adjustments 15

  2. Invalid Conditions: Wages, Tips and Other Compensation ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Correction Procedures:

    1. Refer to the return to determine if line 2 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ This field must be shown as dollars and cents.

      If ... Then ...
      Transcription errors are found Correct screen as necessary.
      The entry in Field 0202 does not agree with line 2 (Wages, Tips and Other Compensation) on the return, Correct the screen entry and transmit.
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Enter "C" in the Clear code Field (CL) to indicate the amount is correct.

      Note:

      A correction to Field 0202 must be entered and transmitted prior to entering the "C" Clear code. The "C" Clear code does not permit any other corrections to the record.

3.12.13.29.16  (01-01-2014)
Error Code 046

  1. Fields Displayed:

    Field Display Field Name Length
    CL Clear Code 1
    01TXP Tax Period 6
    01CCC Computer Condition Code 10
    0202 Total Wages, Tips and other compensation 15
    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 Wages and Tips 15
    02EW Exempt Wages/Tips Paid Qualified Employees 15
    02TW Tax on Exempt Wages/Tips Paid Qualified Employees 15
    02BA Total Taxes Before Adjustments 15
    02BA> Total Taxes Before Adjustments 15

  2. Invalid Condition: The Error Condition will generate if Field 0202 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Field 02MED, Taxable Medicare Wages and Tips is not present.

    Exception:

    If CCC "4" or "B" is present, it will allow this error code to bypass.

  3. Correction Procedures:

    1. Compare the displayed field entries with the appropriate line on the return. Make sure an old form format is not causing the error.

      Note:

      If the taxpayer entered an amount on line 5d and line 5c is blank, remove the entry in Field 02XMT and enter in Field 02MED.

    2. If the fields are correct as transcribed, use the information below to correct the record.

      If ... And ... Then ...
      There is an entry in Field 0204 or on return line 4,   Enter CCC B in Field 01CCC.
      There is no entry in Field 0204 or on return line 4 You can determine the entry on line 2 represents non-wage items, e.g. pensions, annuities, third party sick pay, supplemental unemployment, gambling winnings, etc., or the taxpayer is indicating IRC Section 3121(l) Enter CCC B in Field 01CCC.
      There is no entry in Field 0204 or on return line 4 Field 0202, e.g. line 2 on the return, has an entry representing wage items or is blank, zero, none, etc. Review the return and attachments to determine if the taxpayer is claiming an "Exemption" from Social Security and/or Medicare.

      Note:

      The taxpayer may indicate an exemption by using such phrases as, "United Transportation Union" , "railroad" , "common paymaster" , "minister" , "Form 4361" , "Form 4029 Exempt" , "Form 4029 applicable" , etc. Also, if the taxpayer merely indicates their profession on the signature line, it does not qualify as an explanation for claiming a Social Security and/or Medicare exemption.

      The taxpayer has indicated an exemption on the return or attachments,

      Note:

      The taxpayer may indicate an exemption by using such phrases as, "United Transportation Union" , "common paymaster" , "minister" , "Form 4361" , "Form 4029 Exempt" , "Form 4029 applicable" , "child under the age of 18 years of age" , etc. Also, if the taxpayer merely indicates their profession on the signature line, it does not qualify as an explanation for claiming a Social Security and/or Medicare exemption

        Enter CCC B in Field 01CCC.
      No entry in Field 0204 or line 4 on the return Entity area clearly indicates taxpayer is a Railroad Enter CL code to allow return to post as is. If unsure, initiate research using CC INOLE or ENMOD to determine if TP has filing requirements for CT-1 (MFT 09), if so enter C in CL code.
      There is no indication from the taxpayer that they are exempt from Social Security and/or Medicare on the return or attachments,   Initiate research using CC INOLE and/or BMFOL to find the taxpayer's Employment Code. (Then follow the procedures below for the applicable Employment Code or situation).
      Employment Code C,F or G is shown on the return or found during research,   Enter CCC "B" into Field 01CCC.
      Employment Code T is shown on the return or found during research,   1– Enter the amount of Field 0202 to Fields 02SSW and 02MED, column 1.

      2 When EC 048 generates enter "C" in Clear Code Field.

      3 When EC 080 generates bring up the Field 025> underprint.
      4 When Error Code 100 generates, enter TPNC 90 with the statement, "You are liable for Social Security and Medicare tax under a Section 218 agreement (for state and local governmental agencies) with the Social Security Administration. "
      Employment Code W is found during research,   1– Enter Field 0202 amount into Fields 02SSW and 02MED, column 1.

      2 When EC 048 generates enter "C" in Clear Code Field.

      3 When EC 080 generates bring up the Field 02TSM> underprint.

      4 When Error Code 100 generates, send TPNC 08.
      No Employment Code is shown on the return or found during research There is no entry in column 1 or 2 1– Enter the Field 0202 amount into Fields 02SSW and 02MED, Column 1.

      2 When EC 048 generates enter "C" in Clear Code Field.

      3 When EC 080 generates bring up the Field 02TSM> underprint.
      4 When Error Code 100 generates, send TPNC 07.
      You can determine that the wages shown on line 2 belong to a working spouse and/or children over age 18, Fields 02SSW and 02MED, column 1 are blank, 1– Enter the amount of Field 0202 to Fields 02SSW and/or 02MED, column 1.

      2 When EC 048 generates enter "C" in Clear Code Field.

      3 When EC 080 generates bring up the Field 025> underprint.
      4– When Error Code 100 generates, send TPNC 07.
      The return shows tax calculations on line 5a, column 2, or line 5c, column 2 Fields 02SSW and 02MED are blank, Determine the wages amount by dividing the Social Security or Medicare tax by the appropriate rate, and continue to process.
      Taxpayer files a Form 941 with entries only on line 2 or lines 5a, column 1 and 5c, column 1, The taxpayer indicates the tax withheld was from pensions, annuities, third-party sick pay, supplemental unemployment, or gambling winnings, and ERS cannot determine if it represents wages or non-wages, Correspond with the taxpayer to determine their intent.

      Note:

      Tax on annuities, pensions, third-party sick pay, etc. should be reported on Form 945.

      The return shows no entries or tax calculations on lines 5a through 5c (columns 1 and 2), but an entry shows on line 5e,

      Note:

      If an IRC Section 6020(b) return is incomplete on lines 5a, 5b, or 5c, use the IF/THEN procedure to process.

        Divide the amount in Field 02TSM by .153 (all tax periods except those for 2011 and 2012 or .133 if for a tax period in 2011 or 2012) and enter the result in Field 02SSW, and in Field 02MED.

    EMPLOYMENT CODE TABLE
    (with type of entity)
    C Church or church-controlled organization exempt from Social Security tax. Exempt from Social Security and/or Medicare unless taxpayer indicates wage amount(s)
    F Federal government agency exempt from Social Security tax.
    G State/local government agency not under a Section 218 agreement. Generally, the employees are liable only for Medicare tax.
    A Fiscal Agent Under Section 3504 Subject to Social Security and/or Medicare
    I Indian Tribal Government or subsidiary
    N Non-profit organization subject to FICA
    S Form 2032 filed by foreign subsidiary. Employees subject to Social Security & Medicare.
    T State/local government agency under a Section 218 agreement.
    W Section 501(c)3 nonprofit organizations exempt from the Federal Unemployment Tax Act (FUTA) under Section 3306(c)8.

3.12.13.29.17  (01-01-2014)
Error Code 048

  1. Fields Displayed:

    Field Display Field Name Length
    CL Clear Code 1
    02ITW Total Income Tax Withheld 15
    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
    02EW (201006-201012) Exempt Wages/Tips Paid Qualified Employees 15
    02TW (20106-201012) Tax on Exempt Wages/Tips Paid Qualified Employees 15
    02BA (201006-201012) Total Taxes Before Adjustments 15
    02BA> Total Taxes Before Adjustments 15
    02FC Current Quarter's Fractions of Cents 15
    02SP Current Quarter's Sick Pay 15
    02TG Current Quarter's Adjustment for Tips and Group Life Insurance 15
    02TA (2005-201003) Total Adjustments 15
    02TA> Computer Generated Total Adjustments 15
    02TT Total Tax Taxpayer 15
    02EC (201012 and prior) Advanced Earned Income Credit 15

  2. Invalid Condition: Field 02TT (Total Tax -Taxpayer) is zero or blank, but at least one other displayed field has a dollar entry.

  3. Correction Procedures:

    1. Check the return for misplaced entries or the screen for transcription errors.

      If ... Then ...
      Transcribed incorrectly, Enter the correct entry from the return.
      Field 02TT, Total Tax-Taxpayer, is blank or zero, but the Fields 02ITW through 02TA show tax entries,

      Note:

      Use these procedures if the taxpayer indicates that wages were paid to a family member(s) or spouse as "exempt wages" . PL 100–203 brought spouses and children, age 18 and older, under Social Security coverage.

      Visually verify the entry on the total tax line from the prior line entries on the return. Make corrections, as needed. Then, compare the entry on the total tax line with Field 02TT. Enter corrected Field 02TT.
      After comparing the Total Tax entry on Form 941 and Field 02TT from the screen display, if the total taxes are truly zero, blank or "None" , Enter "C" in the Clear Code Field to indicate all entries are correct.

      Note: A correction to any displayed field must be entered and transmitted prior to entering the "C" in the Clear code. The "C" in the Clear code does not permit any other corrections to the record.
      After comparing the Total Tax entry and Field 02TT on the screen display, if the total taxes should be other than zero, blank, "None" and EC 100 generates Enter TPNC 03.

3.12.13.29.18  (01-01-2014)
Error Code 050

  1. Fields Displayed:

    Field Display Field Name Length
    01TXP Tax Period 6
    0202 Wages, Tips or Other Compensation 15
    02SSW Taxable SS Wages 15
    02SST Taxable SS Tips 15
    02MED Taxable Medicare Wages and Tips 15
    02EW (201006-201012) Exempt Wages/Tips Paid Qualified Employees 15
    02TW (20106-201012) Tax on Exempt Wages/Tips Paid Qualified Employees 15
    02BA (201006-201012) Total Taxes Before Adjustments 15
    02BA> Total Taxes Before Adjustments 15
    02FC Current Quarter's Fractions of Cents 15
    02SP Current Quarter's Sick Pay 15
    02TG Current Quarter's Adjustment for Tips and Group Life Insurance 15
    02TA (2005-201003) Total Adjustments 15
    02TA> Computer Generated Total Adjustments 15
    02TT Total Tax Taxpayer 15
    02EC (201012 and prior) Advanced Earned Income Credit 15

  2. Invalid Conditions: The Advance Earned Income Credit (AEIC), Field 02EC is greater than the allocated percentage of the Wages, Tips, and Other Compensation, Field 0202. The allocated percentages are:

    1. 10% for tax periods 198412 and prior.

    2. 11% for tax periods 198503 through 198612.

    3. 14% for tax periods 198703 through 199012.

    4. 16.7% for tax periods 199103 through 199112.

    5. 17.6% for tax periods 199203 through 199212.

    6. 18.5% for tax periods 199303 through 199312.

    7. 15.78% for tax periods 199403 through 199412.

    8. 20.4% for tax periods 199503 through 201012.

  3. Correction Procedures:

    1. Compare the displayed screen entries with the return. Correct any fields to agree with the return.

      Note:

      First, review the tax period of the return. Advance Earned Income Credit (AEIC) is not allowable for any return with a tax period beginning on or after January 1, 2011. If an entry appears in Field 02EC for a return indicating a later tax period, blank the Field 02EC.

      If ... Then ...
      Field 0202 (line 2) is blank and Field 02EC (line 9) contains an entry, 1– Add Field 02SSW and 02SST together, (lines 5a, Column 1, and 5b, Column 1).

      2– Enter in Field 0202, the "larger" of the total computed in 1 above, or the amount in Field 02MED (line 5c, column 1).
      Fields 0202, 02SSW, and 02SST (lines 2, 5a, Column 1, and 5b, Column 1) are blank, but Field 02MED ( line 5c, column 1) has an entry, Enter the Field 02MED (line 5c, column 1) amount to Field 0202 (line 2) on the screen.
      Fields 0202, 02SSW, 02SST, and 02MED (return lines 2, 5a, column 1, 5b, column 1, and 5c, column 1) are blank, but line 3 of the return has an entry, Add a zero to the line 3 amount and enter the new amount to Field 0202 on the screen.
      It appears the Field 02EC (line 9) amount may be the amount of the deposits,

      Note:

      Follow the applicable steps below in the order provided until the error has been resolved.


      1– Initiate research to determine the total Federal Tax Deposits, e.g. (but not limited to) TC 650s, 670, and any TC716 applied to the applicable tax period.
      2- If the amount in Field 02EC is:
      1. The same amount or within ≡ ≡ ≡ ≡ ≡ or less of the computed total deposit amount, e.g. add all (but not limited to) TC 650s, 670s, and any TC716, use CC GTSEC02. Delete the entry in Field 02EC and enter the same amount to Fields 02DEP and 02STL on the screen display.

      2. Not the same amount, or ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ than the computed total deposit amount, e.g. (but not limited to) TC650, 670s, and any TC716, correspond for clarification of AEIC.


      3- If you receive a reply, compare the taxpayer's reply to the screen display. Correct any incorrect entries.
      4- If no reply, or an inadequate reply is received from the taxpayer, compute the correct amount of AEIC by multiplying the wage entry in Field 0202 by the allocated percentage. (The allocated percentages for each year are shown beneath the "Invalid Conditions" above.)

      Note:

      If Error Code 102 subsequently generates, enter TPNCs 23 and 27.


3.12.13.29.19  (01-01-2014)
Error Code 054

  1. Fields Displayed:

    Field Display Field Name Length
    CL Clear Code 1
    01TXP Tax Period 6
    02TT Total Tax Taxpayer 15
    02EC Advanced Earned Income Credit 15
    02DEP FTD Credit 15

  2. Invalid Condition: Error Code generates when the Advance Earned Income credit (AEIC) minus the Total Tax-Computer amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ , and the AEIC amount is greater than the Total Federal Tax Deposits by≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  3. Correction Procedures:

    1. Compare the entries on the screen display and the return. Correct any coding or transcription errors. Then, initiate research (BMFOL T) to determine the computed total of deposits, (TC650s), payments, (TC670s) and any TC716 credit elect from a prior tax period applied to the applicable tax period. (Follow the If/Then table in priority order:)

      Note:

      First, review the tax period of the return. Advance Earned Income Credit (AEIC) is not allowable for any return with a tax period beginning on or after January 1, 2011. If an entry appears in Field 02EC for a return indicating a later tax period, blank the Field 02EC.

      If ... Then ...
      The Field 02EC amount is the same as the computed total of the deposits, e.g. (but not limited to) amount of all TC 650s, 670, and any TC716, on the tax period. 1- Delete Field 02EC.

      2- Use GTSEC 02. Enter the same amount which was previously in Field 02EC to Field 02DEP and 02STL on the screen display. Then, continue processing.
      The return line 11 is blank, research shows no deposits, "and" Field 02EC is "less" than $2,500, Enter "C" in the Clear Code Field to resolve.
      Field 02EC amount is not the same as the applied deposits, but the entry is greater than $2,500. 1- Correspond for clarification of AEIC entry.

  4. Suspense/Rejects Procedures:

    1. Process suspense correspondence as follows:

      If ... Then ...
      You receive a reply from the taxpayer, Compare the taxpayer's reply to the screen display. Correct any incorrect entries.
      No reply is received, or an inadequate reply, Enter "C" in the Clear Code Field to resolve.

3.12.13.29.20  (01-01-2014)
Error Code 056

  1. Fields Displayed:

    Field Display Field Name Length
    CL Clear Code 1
    01SIC Schedule Indicator Code 1
    01ARN Applied Refund Indicator 1
    0202 Wages, Tips and Other Compensation 15
    02ITW Total Income Tax Withheld 15
    0204 Exempt SS and Medicare Wages 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
    02EW (201006-201012) Exempt Wages/Tips Paid Qualified Employees 15
    02TW (20106-201012) Tax on Exempt Wages/Tips Paid Qualified Employees 15
    02BA (201006-201012) Total Taxes Before Adjustments 15
    02BA> Total Taxes Before Adjustments 15
    02FC Current Quarter's Fractions of Cents 15
    02SP Current Quarter's Sick Pay 15
    02TA (2005-201003) Total Adjustments 15
    02TA> Computer Generated Total Adjustments 15
    02TT Total Tax Taxpayer 15
    02TT> Total Tax Computer Generated 15
    02EC (201012 and prior) Advanced Earned Income Credit 15
    02DEP FTD Payments Claimed 15
    02CPM COBRA Premium Assistance Payments 15
    02STL COBRA Sub Total 15
    02B/R Balance Due/Overpayment 15
    02B/R> Balance Due/Overpayment Computer Generated 15

  2. Invalid Condition: The error code will generate if the FTD credit is present and Total Tax Computer is zero or negative.

  3. Correction Procedures:

    1. Compare the screen display and the return.

      If ... Then ...
      Transcribed incorrectly, Enter the correct entry from the return.
      The return is truly non-taxable and FTD Credits are present, Clear the error by entering "C" in the Clear code (CL) Field.

      Note:

      A correction to any displayed field must be entered and transmitted prior to entering the "C" in the Clear code. The "C" in the Clear code does not permit any other corrections to the record.

      You are unable to determine if the return is taxable or non-taxable, Correspond with the taxpayer. Suspend with CC SSPND and Action Code 21X.
      There is no reply from the taxpayer, Enter "C" in the Clear code.

3.12.13.29.21  (01-01-2014)
Error Code 058

  1. Fields Displayed:

    Field Display Field Name Length
    S02NP Section 02 Not Present  
    S03NP Section 03 Not Present  
    03D> Monthly Liability Computer Generated 15
    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: This error condition will generate if Section 03, or Sections 05, 06, and 07 of the Record of Federal Tax Liability (ROFTL) is present but Section 02, Tax Liability Computation is not present.

  3. Correction Procedures:

    1. Refer to the return to determine if Sections 02 and 03, or Sections 05, 06, and 07 should be present.

      If ... Then ...
      There are entries on the return for Section 02 Fields, 1– Use CC GTSEC 02 to show the section format on the screen.

      2– Enter the appropriate data to the fields on the screen.
      There are no entries for Section 03, Sections 05, 06, or 07 on the return, Use CC DLSEC to delete the Sections from the screen.
      There are entries present on the return for Section 03, 05, 06 or 07, and not Section 02, Correspond with the taxpayer to secure the information concerning the tax liability for the quarter. Suspend the record with Action Code 21X.

      Reminder:

      Enter any applicable Sections prior to corresponding.

      There is no reply from the taxpayer, 1– Use CC GTSEC 02 to show the section format on the screen.

      2– Enter the amount from Field 03D> and/or 07C> to Fields 02ITW and 02TT.

      3– If Error Code 102 displays, use TP NC 27 to advise the taxpayer that we adjusted the tax because we did not receive a reply to our request for additional information.

3.12.13.29.22  (01-01-2014)
Error Code 069

  1. Fields Displayed:

    Field Display Field Name Length
    02CPM COBRA Premium Payments 15
    02CEM Number of Recipients Receiving COBRA 6

  2. Invalid Condition: This error code will generate if Field 02CPM or 02CEM contains an entry, and the alternate field is blank or zero.

  3. Correction Procedures:

    1. Compare the screen display against the return and any attachments to correct any transcription errors or omissions.

      Note:

      Review the return line 11 for an entry. The taxpayer may have entered the Federal Tax Deposit total on an incorrect line. Also, determine if Code and Edit initiated correspondence for any missing COBRA line information, e.g. lines 12a or 12b. Code and Edit is required to indicate on the return that correspondence was initiated by editing the left margin AC211. (For signature only correspondence AC225 or AC226 is used.)

      Caution:

      Fields 02CPM and 02CEM are applicable to tax periods 200903 through 201312 only.

      If ... And ... Then ...
      Field 02CPM contains an entry (i.e. greater than zero), and Field 02CEM is blank Field 02DEP and return line 11 does not contain an entry, Enter the Field 02CPM amount to 02DEP. Blank Field 02CPM.
      Field 02DEP and return line 11 contains an entry Review the left margin of the Form 941 and any attachments to determine if Code and Edit previously issued correspondence for the missing information.
      There is no indication Code and Edit initiated correspondence, e.g. by leaving a margin notation or an attachment   CC SSPND with AC211. Use 21C letter ( Rev April 2010), paragraph J (or, for Form 941-PR, use the 21(SP) letter, (Rev June 2010) Paragraph J to secure the missing information.
      Field 02CEM contains an entry (i.e. greater than zero), and Field 02CPM is blank   Delete Field 02CEM.
      There is an entry in Field 02CPM or 02CEM The taxpayer is reporting information for a period after 201312 Delete entries.

  4. Suspense/Rejects Procedures:

    1. Process replies, inadequate replies and no replies as follows:

      If ... Then ...
      A reply is received or attached to the return, Enter the missing information.
      The reply is incomplete, or there is no reply,
      1. Blank the entry in the Field(s) 02CPM or 02CEM on the display screen which appear on the return, e.g. line 12a or 12b (Rev January 2009 and subsequent) The display may respond with Error Code 101.

      2. (If Error Code 101 does not display, continue to #3 below.) Error Code 101 displays (when greater than the tolerance) if the sum of the Total Federal Tax deposits (line 11) and the COBRA Premium Assistance payments (line 12a) from the return does not match the amount of the Field 02STL> underprint. To resolve, send TPNC 33.

      3. Error Code 102 will display (when greater than tolerance) as a ripple error if Field 02TT (Total Tax-Taxpayer) or Field 02STL (COBRA Subtotal-Taxpayer) was corrected. Send TPNC 01 and, if no reply or an inadequate reply was received to prior correspondence, TPNC 27.

3.12.13.29.23  (01-01-2014)
Error Code 072

  1. Fields Displayed:

    Field Display Field Name Length
    02MRN March Number of Qualified Employees Paid Exempt Wages/Tips 6
    02MRW March Amount of Qualified Employees Exempt Wages/Tips Paid 15

  2. Invalid Condition: This error condition will generate when:

    1. Field 02MRN contains an entry greater than zero, and Field 02MRW is blank or zero

    2. Field 02MRW contains an entry greater than zero, and Field 02MRN is blank or zero

  3. Correction Procedures:

    1. Review the screen display against the return. These fields are only valid for tax period 201006.

      If ... Then ...
      Field 02MRN is greater than zero, and Field 02MRW is blank or zero. Review the Form 941, Rev 2010, lines 12c and/or 12d to determine if there was a transcription error. If so, correct the incorrect entry from the return. If Field 02MRN has a figure, but the return indicates no credit taken, delete Field 02MRN.
      Field 02MRW is greater than zero, and Field 02MRN is blank or zero If there are no transcription errors and Field 02MRN is blank, enter a "1" in Field 02MRN (only if Field 02MRW has a valid entry.

3.12.13.29.24  (01-01-2014)
Error Code 080

  1. Fields Displayed:

    Field Display Field Name Length
    0202 Wages, Tips and Other Compensation 15
    02SSW Taxable SS Wages 15
    02SST Taxable SS Tips 15
    02MED Taxable SS and Medicare Wages 15
    02XMT Additional Taxable Medicare Wages and Tips 15
    02TSM Total SS and Medicare Taxes 15
    02TSM> Total SS and Medicare Taxes Computer Generated 15

  2. Invalid Condition: This error will generate if the difference between Fields 02TSM and 02TSM> ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Correction Procedures:

    1. Compare the displayed field entries with the return:

      Note:

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

      Caution:

      Taxpayers are no longer receiving Forms 941 by mail. Many taxpayers are using old revisions of Form 941 to file taxes for quarters in 2011 and 2012. The tax rate on SS wages and tips for 2011/2012 was reduced by 2%. 2010 and prior periods rate was .124 while the rate for 2011/2012 is .104 for lines 5a and 5b. See procedures below to determine if this is the reason for the math error generating.

    2. Check for transposition, transcription or coding errors. Correct the applicable fields to agree with the return.

      Caution:

      Some taxpayers are incorrectly assessing the SS tax by using the wrong rate (.104 or .124). They then are attempting to reduce their tax on lines 7a, 7b or 7c (2010 revision) or lines 7, 8, or 9 (2011/2012 revision) by the difference. When this occurs bring up the Field 02TSM underprint, GTSEC Screen 02 and remove the amount reported in Fields 02FC, 02SP or 02TG. This should clear the error. If the total amount exceeds the 2% difference on lines 7a, 7b or 7c, have the lead review the account.

      If ... Then ...
      The taxpayer used the incorrect rate to figure taxable SS wages or tips (.124 vs. .104) (tax periods for 2011, 2012 and 2013 only). Other periods process to period indicated.) Research using BMFOLI for any indication the TP has already filed a return for the tax period on the return (the return must not indicate in any way that it is amended, corrected or supplemental).
      1. If there is a return posted for the period on the return then GTSEC 01 and change the period to a current tax period for 2011, 2012 and 2013.

      2. If there is no return posted for the tax period on the return then continue processing using the procedures below.

      The taxpayer entered an amount on line 5d and line 5c is blank, Remove the entry in Field 02XMT and enter in Field 02MED.
      The taxpayer entered an amount in lines 5a, 5b 5c and/or 5d, column 2, but left line 5e blank, or computed it incorrectly, 1) Back into the wage amount(s) to determine if the TP omitted, incorrectly transcribed or transposed figures, or check the amounts to determine if C&E may have edited the wrong amount in error. Use the tax rate of .133 for 2011 and 2012 and .153 for all other periods.
      a) If any of the above situations in step 1 are present, Change Field 02SSW, 02SST and/or 02MED accordingly.
      b) If none of the above situations in step 1 are present then enter the underprint amount in Field 02TSM. When the math error on line 5d becomes less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the math error may ripple and generate EC 100.

      Note:

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


      2) When EC 100 generates review a) and b) and c) below to find your current return condition and apply the resolution procedures.
      a) Field 02TT> is less than Field 02TT ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ then correspond with the TP to verify SS and Medicare wage/tip amounts or send TPNC 21 if the incorrect tax rate was used (.124 instead of .104 for 2011/2012) and this is the only error.
      b) Field 02TT> is less than Field 02TT≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or an increase by any amount results, enter TPNC 07 and if EC 102 generates 07.
      c) Send TPNC 21 if the incorrect tax rate (.124 vs. .104) was used and this is the only error. If EC 102 generates send TPNC 01.

      Caution:

      If TP made an additional error in the total tax field (Field 02TT) send TPNC 03 also.


      3) If you receive no reply or an insufficient reply, resolve in favor of the IRS by adding the difference between Field 02TT> and 02TT to Field 02ITW.

  4. For 6020(b) returns please use the procedures below:

    If ... Then ...
    The return was prepared under section 6020(b) by a Revenue Officer 1. Review the return to determine if it was signed by the Revenue Officer.

    2. If the return was unsigned, forward the return to Rejects to have the DLN cancelled. After the DLN is cancelled, route the return as instructed in IRM 3.12.13.21.

    3. If the return is signed, check the return for any transposition 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 (2011/2012) and enter the result in Field 02SSW and in Field 02MED.

3.12.13.29.25  (01-01-2014)
Error Code 082

  1. Fields Displayed:

    Field Display Field Name Length
    01CCC Computer Condition Codes 10
    02FP Number of Qualified Employees First Paid Exempt Wages/Tips this Quarter 15
    02NP Number of Qualified Employees Paid Exempt Wages/Tips this Quarter 15
    02EW Exempt Wages/Tips Paid Qualified Employees During this Quarter 15

  2. Invalid Condition: This error condition will generate when Field 027B plus $100.00 is greater than Field 02TCW or Field 027B is greater than zero or is blank and the total of Field 02TCW are equal to zero or blank.

  3. Correction Procedures:

    1. Compare the return and any attachments against the screen. Correct any transcription errors by entering the return or attachment entry to the applicable field on the screen.

      If ... Then ...
      The entries on the screen display match the return Initiate correspondence to correct return line(s) 5a through 5c, or line 6c (Form 941, Rev April 2010). Use Letter 21C, and SSPND using Action Code 211.
      The taxpayer sends an adequate reply, Correct the information on the screen display, as per the taxpayer’s reply. GTSEC01 and enter the Correspondence received date (CRD) into Field 01CRD.
      The taxpayer sends an inadequate reply, or there is no reply from the taxpayer,
      1. GTSEC 01 and enter “3” to Field 01CCC. Edit the return with CCC “3”.

      2. Blank any entry to Field(s) 02FP, 02NP, and 02EW and transmit to update the display on the screen.

      3. When Error Code 100 displays, enter TPNC 34 to advise the taxpayer that we have disallowed their Social Security tax adjustment for the exempt wages paid qualified employees. The total of the reported Social Security Wages and Social Security Tips must be equal to, or greater than, the exempt wages paid qualified employees, and TPNC 27, e.g. no reply or an inadequate reply to correspondence.

3.12.13.29.26  (01-01-2014)
Error Code 085

  1. Fields Displayed:

    Field Display Field Name Length
    02SSW Taxable SS Wages 15
    02SST Taxable SS Tips 15
    02FP Number of Qualified Employees First Paid Exempt Wages/Tips this Quarter 15
    02NP Number of Qualified Employees Paid Exempt Wages/Tips this Quarter 15
    02EW Exempt Wages/Tips Paid Qualified Employees During this Quarter 15
    02TW Tax on Exempt Wages/Tips Paid Qualified Employees During this Quarter 15
    02TW> Tax on Exempt Wages/Tips Paid Qualified Employees During this Quarter Computer Generated 15

  2. Invalid Condition: This error condition will generate when:

    1. Fields 02FP and 02NP have a value other than zero or blank, and Field 02EW is zero or blank.

    2. Fields 02FP and 02NP are zero or blank and Field 02EW is not zero or blank.

  3. Correction Procedures:

    1. Compare the return against the screen. Correct any transcription errors by entering the return entry to the applicable field on the screen.

      If ... Then ...
      Form 941 line 6b (Revision 04/2010 or 10/2010) is blank, zero, none etc. and there is an entry on line 6c
      1. Review Form 941, line 6a for an entry

      2. If line 6a contains an entry, enter the same number on line 6a to Field 02NP

      3. If Field 02FP is blank, zero, none, etc. initiate correspondence to secure the missing information using Letter 21C, paragraph H and enter Action Code 211.

      Form 941 (Revision 04/2010 or 10/2010) line 6b contains an entry, and line 6c is blank, zero, none etc. Delete Field 02NP and/or 02FP
      An amount is shown in Field 02TW, but Field 02EW is blank, zero or none Back into Field 02EW by dividing the amount in Field 02TW by .062.

  4. Suspense/Rejects Procedures:

    1. If you receive a reply, input the taxpayer’s entry to Field 02NP or Field 02EW. GTSEC 01 and enter the Correspondence received date (CRD) into 01CRD.

    2. If you receive an inadequate reply, e.g. missing information is not provided, or no reply, blank any entry in Field(s) 02FP, 02NP, and/or 02EW. GTSEC 01 and enter “3” to Field 01CCC.

    3. If the correction to Field 02EW ripples to Error Code 100 see IRM 3.12.13.29.30

3.12.13.29.27  (01-01-2014)
Error Code 094

  1. Fields Displayed:

    Field Display Field Name Length
    02SSW Taxable SS Wages 15
    02SST Taxable SS Tips 15
    02FP Number of Qualified Employees First Paid Exempt Wages/Tips this Quarter 15
    02NP Number of Qualified Employees Paid Exempt Wages/Tips this Quarter 15
    02EW Exempt Wages/Tips Paid Qualified Employees During this Quarter 15
    02TW Tax on Exempt Wages/Tips Paid Qualified Employees During this Quarter 15
    02TW> Tax on Exempt Wages/Tips Paid Qualified Employees During this Quarter Computer Generated 15

  2. Invalid Condition: This error condition will generate when the difference between Fields 02TW and 02TW> is greater than the tolerance of ≡ ≡ ≡ ≡ ≡ ≡

  3. Correction Procedures:

    1. Compare the return against the screen. Correct any transcription errors by entering the return entry to the applicable field on the screen.

      If ... Then ...
      The entry in Field 02TW is correct per the return Enter Field 02TW> underprint to Field 02TW.
      Taxpayer made a true math error Bring up the underprint Field 02TW> to Field 02TW. When EC 100 generates send TPNC 03

3.12.13.29.28  (01-01-2014)
Error Code 097

  1. Fields Displayed:

    Field Display Field Name Length
    02MRW March Amount of Exempt Wages/Tips Paid Qualified Employees 15
    02MRT SS Tax Credit on March Exempt Wages/Tips 15
    02MRT> SS Tax Credit on March Exempt Wages/Tips Computer Generated 15

  2. Invalid Condition: This error condition will generate when Field 02MRT, Tax Credit on March Exempt Wages/Tips Paid Qualified Employees- Taxpayer, is compared to Field 02MRT>, Tax Credit on March Exempt Wages/Tips Paid Qualified Employees- Computer, and the difference is ≡ ≡ ≡ ≡ or greater

  3. Correction Procedures:

    1. Compare the return against the screen. Correct any transcription errors by entering the return entry to the applicable field on the screen.

      If ... Then ...
      The entry in Field 02MRT is correct per the return, the return shows a dollar entry on line 12d, but the taxpayer left line 12e blank Enter Field 02MRT> underprint to Field 02MRT.
      After entering 02MRT> to Field 02MRT, EC 101 displays
      1. Bring up Field 02STL> underprint and enter in Field 02STL

      2. If EC 102 generates due to the input for EC101, enter TPNC 01

3.12.13.29.29  (01-01-2014)
Error Code 098

  1. Fields Displayed:

    Field Display Field Name Length
    01TXP Tax Period 6
    02FC Current Quarter's Fraction of Cents 15
    02SP Current Quarter's Sick Pay 15
    02TG Current Quarter's Adjustments for Tips and Group Life Insurance 15
    02TA Total Adjustments 15
    02TA> Total Adjustments Computer Generated 15
    02TT Total Tax 15
    02TT> Total Tax Computer Generated 15

  2. Invalid Condition: This error condition will generate if there is a difference between the Fields 02TA and 02TA>, for tax periods beginning prior to January 1, 2010.

  3. Correction Procedures:

    1. Compare the return against the screen. Correct any transcription errors by entering the return entry to the applicable field on the screen.

    2. Procedures for year 2009 tax periods reported on Form 941, Rev 2009 or subsequent.

      If ... And ... Then ...
      Fields 02FC through 02TG are all blank, None, etc. There is an entry in Field 02TA, (other than blank, zero, none, etc. ) 1- Blank the Field 02TA.

      2- If Error Code 100 generates, enter TPNC 16
      Fields 02FC through 02TG have one or more entries There is no entry in Field 02TA, or the taxpayer’s entry does not match the amount of the underprint for Field 02TA>. 1- Review return lines 7a through 7c to determine the reason for the Field 02TA> underprint mismatches, e.g. taxpayer transcription error, math error, Code and Edit error, etc.

      Note:

      If you determine a correction is needed, such as, making a positive entry negative, make the correction. If the return goes away, disregard steps 2 and 3.



      2- If there is one or more entries only on lines 7a, 7b, and/or 7c, enter the underprint amount in Field 02TA> for the entry (or the total of the entries). This should resolve EC 098. If Error Code 100

      3- If Error Code 100 generates, enter TPNC 16.

    3. Procedures for year 2009 tax periods reported on Form 941, Rev 2008 or prior.

      If ... And ... Then ...
      Fields 02FC through 02TG are all blank, None, etc. There is an entry in Field 02TA, (other than blank, zero, none, etc. ) 1- Blank the Field 02TA.

      2- If Error Code 100 generates, enter TPNC 16
      Fields 02FC through 02TG have one or more entries There is no entry in Field 02TA, or the taxpayer’s entry does not match the amount of the underprint for Field 02TA>. 1- Review return lines 7a through 7g to determine if a taxpayer entry (or entries) appears on those lines. NOTE: Code and Edit was instructed to ALWAYS X any entry on lines 7d, 7e, 7f, or 7g when the Form 941, Rev 2008 or prior, was filed for any 2009 tax period. Code and Edit was also instructed to edit remarks on the front page margin to indicate whether (or not) a Form 941X was (or was not) attached. The assigned wording for these remarks is shown below. However, SCRIPS transcribers process perfect Form 941 returns (Rev 2008 and subsequent) first, bypassing Code and Edit. Thus, ERS may receive 941s, Rev 2008 and prior, with an entry on line(s) 7d, 7e, 7f, and/or 7g for a 2009 tax period which are X d (or not X d) and/or do not display on the screen display, i.e. This is due to SCRIPS not capturing the line(s) 7d, 7e, 7f, and 7g for a 2009 tax period. Thus, ERS examiners should not rely solely on the return editing of Code and Edit or the screen display since they may not match. Rather, before taking action, consider the return editing, screen display, and error condition together.

      2- If the Form 941, Rev 2008 or prior, shows an entry on any line 7d through 7g, use the "Exception" step procedures below rather than the following procedures in #2. If there is one or more entries only on lines 7a, 7b, and/or 7c, enter the underprint amount in Field 02TA> for the entry (or the total of the entries). This should resolve EC 098. If Error Code 100 generates, see #3.

      .•EXCEPTION
      1. Review the left margin on the return for an indication by Code and Edit that a Form 941X was attached to support the entry (or entries) on line(s) 7d through 7g of the return. Code and Edit was instructed to write 941X to AM (as applicable) if a Form 941X was attached, or CP102-941X if a Form 941X was not attached.

      2. If the left margin indicates Form 941X was attached, (or a copy of a Form 941X is attached), then enter the underprint amount in Field 02TA>. The underprint amount should be the entry (or the total of the entries) in Fields 02FC, 02SP, and/or 02TG, i.e., lines 7a, 7b and/or 7c of the return, to resolve EC 098. (See the applicable row below for Error Code 100 procedures.)

      NOTE: The adjustment(s) will be manually processed in Accounts Management.

      3- If Error Code 100 generates, enter TPNC 16.
      Due to EXCEPTION processing for an entry (or entries) on line(s) 7d through 7g, and Error Code 100 generated The left margin of the return indicates a Form 941X was attached (or a copy of the Form 941X is attached), Enter TPNC 31. This will advise the taxpayer that their adjustment entry (or entries) are being processed in Accounts Management separately.
      Due to EXCEPTION processing an entry (or entries) on line(s) 7d through 7g, and Error Code 100 generated The left margin of the return indicated CP102-941X (or there was no indication on the left margin or copy of a Form 941X attached), Enter TPNC32. This will advise the taxpayer that their adjustment entry (or entries) have been denied and that they should file a Form 941X to request the entry (or entries

    4. Procedures for year 2008 or prior tax periods reported on Form 941, Rev 2008 or prior.

      If ... And ... Then ...
      Fields 02FC through 027SS are all blank, None, etc. There is an entry in Field 02TA, 1- Blank the Field 02TA.

      2- If Error Code 100 generates, enter TPNC 16
      Fields 02FC through 027SS have one or more entries, There is no entry in Field 02TA, or the taxpayer’s entry does not match the amount of the underprint for Field 02TA>. 1- Review return lines 7a through 7g to determine which lines have a taxpayer entry (or entries).
      • If lines 7d, 7e, 7f, and/or 7g are blank, enter the 02TA> underprint amount for the total of Fields 02FC, 02SP, and/or 02TG. This resolves Error Code 098 and generates Error Code 100. Then, enter TPNC 16.

      • If line 7d, 7e, 7f and/or 7g contain an entry, review any attachments, for a copy of the 941X, or review the left margin of the return for an indication by Code and Edit that a Form 941X was attached.

      • If a copy of the Form 941X is attached, enter the underprint Field 02TA> amount to resolve Error Code 098 (move to last bullet)

      • If a copy of a Form 941X is not attached, (and there is no indication by Code and Edit of a 941X being attached, "X" the line adjustment. Enter the re-calculated 02TA> underprint amount. When Error Code 100 generates, enter TPNC 32 to advise the taxpayer to file a Form 941X for the adjustment in the future.

      • If Error Code 100 generates, enter TPNC 31 to advise the taxpayer the adjustment will be processed separately by Accounts Management.

3.12.13.29.30  (01-01-2014)
Error Code 100

  1. Fields Displayed:

    Field Display Field Name Length
    NC Notice Codes  
    01TXP Tax Period 6
    01CCC Computer Condition Code 10
    0202 Wages, Tips and Other Compensation 15
    02ITW Total Income Tax Withheld 15
    0204 Exempt SS/Medicare Wage 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 Tax 15
    02TSM> Total SS and Medicare Tax Computer Generated 15
    02EW Exempt Wages/Tips paid Qualified Employees 15
    02TW Tax on Exempt Wages/Tips Paid 15
    02TW> Tax on Exempt Wages/Tips Paid computer Generated 15
    02BA Total Taxes Before Adjustments 15
    02BA> Total Taxes Before Adjustments Computer Generated 15
    02FC Fraction of Cents 15
    02SP Sick Pay 15
    02TG Total Adjustments for Tips and Group Life Insurance 15
    02TA Total Adjustments 15
    02TA> Total Adjustments Computer 15
    02TT Total Tax Taxpayer 15
    02TT> Total Tax Computer Generated 15

  2. Invalid Conditions: The Error Condition will generate if Total Tax–Taxpayer (Field 02TT) differs by more than a tolerance with the Total Tax- Computer (Field 02TT>).

    • For year 2008 and prior and 2011 and subsequent, a difference ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ generates the error condition.

    • For tax year 2009 and 2010, a difference ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ generates the error condition.

    The Error Condition will also generate when Total Tax- Computer (Field 02TT>) differs from the sum of Total Taxes before Adjustments-Computer (Field 0206> for Rev 2005 through Feb 2010) and Total Adjustments-Taxpayer (Field 02TA for Rev 2005 through Feb 2010).

  3. Correction Procedures:

    1. Compare the displayed field entries with the appropriate lines on the return. Correct any coding or transcription errors. You can correct TP inconsistencies such as obvious transposition errors and/or obvious typographical errors.

      Caution:

      Some taxpayers are incorrectly assessing the SS tax by using the wrong rate (.104 or .124). They then are attempting to reduce their tax on lines 7a, 7b or 7c (2010 revision) or lines 7, 8, or 9 (2011/2012 revision) by the difference. When this occurs bring up the Field 02TSM underprint, GTSEC Screen 02 and remove the amount reported in Fields 02FC, 02SP or 02TG. This should clear the error. If the total amount exceeds the 2% difference on lines 7a, 7b or 7c, have the lead review the account.

      Note:

      If correcting line 6 on a Form 941 with a revision date of February 2010 or earlier, on the screen display, enter the correction in Field 02BA.

      If ... Then ...
      The taxpayer used the correct figure, but entered it on the wrong line,

      Note:

      If on a Form 941, Rev April 2010, filed for the 2nd, 3rd, or 4th quarter 2010, the taxpayer uses line 7b or line 7c as a subtotal line (e.g. to calculate line 6e +/- line 7a = line 8), then on the display screen blank the entry of the incorrect field, e.g. line 7b if Field 02SP, or line 7c if Field 02TG. Continue to process the return.

      Make the correction on the display screen. Do not attempt to correct any computer generated fields.
      TP used old revision Form 941 to file current period GTSEC 01 and enter current period.

    2. Check the tax period and make sure it correlates with the tax rate for Social Security and Medicare taxes. If the tax period cannot be determined, process as a current quarter.

      Tax Year Wages SS Rate Tips SS Rate Medicare Tax Rate Additional Medicare Tax Rate
      1991 - 2010 .1240 .1240 .029 0
      2011 .1040 .1040 .029 0
      2012 .1040 .1040 .029 0
      2013–2014 .1240 .1240 .029 .009

    3. Process errors to Fields 0202, 02ITW and 0204 as follows:

      If ... And ... Then ...
      Line 2 has the same entry as line 3 (but not a negative entry) The entry on line 3 was included by the taxpayer in the Total Tax entry, No action is needed.
      Line 2 has the same entry as line 3 The entry on line 3 was not included by the taxpayer in the Total Tax entry. Enter TPNC 03. If EC 102 generates ripple the TPNC 03
      The TP checked the box on line 4 CCC B is not entered Enter CCC "B" in Field 01CCC

    4. Process errors to Fields 02SSW, 02SST, 02MED, 02XMT, 02TSM and 02TT as follows:

      If ... And ... Then ...
      On the return, line 2, 5a, 5b, and 5c, column 2 are negative entries, e.g. followed by a minus sign,   No action is needed. Accept the entry as a positive entry.
      Field 02ITW and the amount of the Total Income Tax Withheld on the return (line 3) is blank or zero, and Field 02TSM> is correct,   Compute and enter the difference in Field 02ITW. Subtract the computer generated amount for (Field 02TT>) from the taxpayer's amount for Field 02TT and enter the difference in Field 02ITW.
      All the following are true:
      • Field 02TSM> agrees with line 5e on the return, and

      • Fields 02FC through 02TG, agree with lines 7, 8, and 9 on the return

      Field 02TT> (Total Tax-Computer) is less than Field 02TT (Total Tax-Taxpayer) by ≡ ≡ ≡ ≡ ≡ ≡ or more, 1– Correspond with the taxpayer for an explanation of the difference in the tax.

      Note:

      If the tax period is the 2nd, 3rd or 4th quarter 2010, before corresponding, bring up the Field 026E by entering the Field 026E> underprint. This may correct the difference in Field 02TT.
      If reply is received, enter the amount verified by the taxpayer.
      If no reply is received add the difference between Fields 02TT and 02TT> to Field 02ITW.

      Fields 02FC through 02TG agree with Lines 7, 8 and 9 (Lines 7a, 7b and 7c on 2010 and prior returns) on the return There is a difference between Field 02TT> (Total Tax-Computer) and Field 02TT (Total Tax-Taxpayer) ≡ ≡ ≡ ≡ ≡ ≡ or less, Assign TPNC 03.
      There is a difference between Field 02TT> (Total Tax-Computer) and Field 02TT (Total Tax-Taxpayer) which would increase the total tax by any amount, Assign TPNC 03.
      The return shows an incorrect total of Social Security and Medicare taxes on line 5e, (line 5d 2012 and prior), or if line 5e is blank, The difference between line 5e and Field 02TSM> underprint is EQUAL TO, (OR LESS THAN) ≡ ≡ ≡ ≡ ≡ (i.e. below the Error Code 080 tolerance) 1- Enter the Field 02TSM> amount to Field 02TSM.
      1. Send TPNC 21 if the incorrect tax rate (.124 vs .104) was used and this is the only error. If EC 102 generates send TPNC 01. Otherwise continue with the procedures below.


      2- Adjust Field 02BA by the same difference as indicated in 1 above.
      3- Adjust Field 02TT by the same difference computed in #1 above

      4- If Error Code 102 generates, enter TPNC 07.

    5. Process corrections to Fields 02FP, 02NP, 02EW and/or 02BA ) Hiring Incentives for Restoring Employment (HIRE)), as follows: Accept taxpayers figures unless a true math error exists. Bring up the underprint Field 02TW> and send TPNC 03 if necessary

    6. Adjustments to Withholding, Social Security and Medicare taxes reported on Form 941 for tax periods prior to 2009. As of 01/01/2009 the reporting of adjustments to prior quarter and prior years can no longer be reported on Form 941. Process these lines as follows:

      If ... And ... Then ...
      The taxpayer filed a return for tax period 200903 or subsequent with Fields 0202 through 02TG all showing as blank, zero, none, etc. Field 02TA shows an amount, (i.e. an increase or decrease) due to a Form 941X (which is either still attached to the return, or Code and Edit indicated on the left margin of the return with the phrase "941X to AM" or a similar phrase) 1. Blank the amount in Field 02TA. Accounts Management will process the adjustment separately.

      Note:

      If the 941X was still attached to the return in ERS, notate the margin, "941X to AM" if not previously done in Code and Edit. Then, route the 941X to AM.



      2. When the Error Code 100 generates, in Field 01CCC enter an "X" on the display screen, and enter TPNC 31 to advise the taxpayer that the Form 941X is being processed separately. Then, transmit the display screen.
      The return is for a year 2009 or subsequent tax period, and there are any negative entries in Fields 02FC through 02TG There is also one or more positive entries, e.g. entries greater than zero, on lines 3, or 5a, 5b, or 5c (column 1) and 5e, Make sure the negative entries are followed by a minus sign (-) and accept the return entries:
      The return was filed for tax period 200812 or prior, and there is one or more negative entries in Fields 02FC through 02TG There is also one or more positive entries, e.g. entries greater than zero, on lines 3, or 5a, 5b, or 5c (column 1) and 5d, 1- Review the left margin of the return to determine whether the entry (entries) in Field(s) 27QW, 027QS, 027SW, or 027SS were substantiated by a Form 941X. If a 941X was attached, Code and Edit should have edited the left margin with "941X to AM" (or a similar phrase) if the amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

      2- If substantiation was attached, accept the entry (entries).

      3- If there is no substantiation (or an indication by Code and Edit that a substantiation was attached), blank the Field on the display screen where the adjustment was shown.

      4- Then, if Error Code 100 generates, enter TPNC 32 to advise the taxpayer to file Form 941X for the adjustment.

    7. Follow procedures below when a IRC Section 6020 (b) return generates EC 100:

      If ... Then ...
      The return was prepared under IRC 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, forward the return to Rejects 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 Section 6020(b) return is incomplete, blank, or calculated at different rates on lines 5a, 5b, or 5c, Divide the amount in Field 02TSM by .153 (.133 if Tax Year 2011/2012) and enter the result in Field 02SSW, and in Field 02MED.

    8. Exceptions to Processing: IRC 3509, Misclassified Employees, and/or Employee Reclassification.

      If ... And ... Then ...
      The taxpayer uses a different tax rate or cites Internal Revenue Code Section 3509, "Employee Reclassification" , or "Misclassified Employees" . The 941 tax period is 200812 or prior, Delete DLN and send return to AM for resolution.
      The 941 tax period is 200903 and subsequent, 1– Delete the entries in Fields 02SSW, 02SST and 02MED.

      2- Enter the total tax amount in Field 02ITW.

      3- When Error Code 100 generates, enter the Field 02TT> underprint amount.
      Return indicates Apfel vs. Minnesota, CSX vs. United States, Medical/ Dental Residents, and/or IRC Section 3121 (b) (10) There is no indication this return was seen by AM Delete DLN and send return to AM for resolution.

    9. Valid TPNCs for EC 100 are 01, 02, 03, 04, 05, 06, 07, 08, 09, 10, 11, 16, 21, 22, 27, 31, 32, 34, 35 and/or 90. When an invalid TPNC is entered, the Math Error will continue to be displayed until a valid TPNC is entered. Once a valid TPNC is transmitted to the record, the Math Error will clear the screen. If more than one code is applicable, they must be entered with the same transmission. See Exhibit 3.12.13-10.

    10. Suspense/Rejects Procedures:

      If ... Then ...
      Reply received, Take appropriate action to adjust the fields.
      No reply/or insufficient reply is received and Field 02TT> is larger than Field 02TT, Send TPNC 07 and 27.
      No reply/or insufficient reply is received and Field 02TT> is less than Field 02TT, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.13.29.31  (01-01-2014)
Error Code 101

  1. Fields Displayed:

    Field Display Field Name Length
    02DEP FTD Credit Claimed 15
    02CPM COBRA Premium Assistance Payments 15
    02CEM Number of Recipients Receiving COBRA 15
    02STL Sub Total FTD and COBRA 15
    02MRW March Amount Exempt Wages Paid Qualified Employees 15
    02MRT Tax on Exempt Wages Paid in March 15
    02MRT> Tax on Exempt Wages Paid in March Computer Generated 15
    02B/R Balance Due/Overpayment Taxpayer 15
    02B/R> Balance Due/Overpayment Taxpayer Computer Generated 15

  2. Invalid Condition: An error will generate if Field 02STL. e.g. total of Fields 02DEP, 02CPM, and/or Field 02MRT (on Form 941, revision April 2010 for 2nd, 3rd, or 4th quarter in year 2010), does not match the underprint Field 02STL>.

  3. Correction Procedures: The Error Code is applicable to Form 941s, Revision Date January 2009 through December 2012 with the COBRA lines 12a, and 12b, or to prior revisions of Form 941 with an indication by the taxpayer of a COBRA payment (or similar phrase) written on a line for a year 2009 or subsequent tax period.

    1. Compare the displayed field entries with the appropriate lines on the return. Correct any coding or transcription errors. You can correct TP inconsistencies such as obvious transposition errors and/or obvious typographical errors.

      If ... And ... Then ...
      Field 02CPM reflects a negative figure, The TP has subtracted Field 02CPM from Field 02DEP Delete Field 02CPM 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."
      Field 02STL contains an entry, Field 02DEP contains an entry and Field 02CPM and/or 02MRT is blank Bring up the Field 02STL underprint
      Field 02STL contains an entry, Field 02DEP contains an entry and Field 02CPM and/or 02MRT contains an entry 1. Enter TPNC 33.
      2. If Error Code 102 generates, enter the underprint amount to Field 02B/R.
      Field 02STL contains and entry Field 02DEP is blank and Field 02CPM and/or 02MRT contains an entry Conduct research (e.g. BMFOLT) to determine whether the entry in 02CPM is the total Federal Tax Deposits, e.g. (but not limited to) TC650, 670, and/or 716.
      • If research determines there were Federal Tax Deposits and the difference between the computed total of those transactions and Field 02CPM is within the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ then, move the entry in 02CPM to 02DEP.

      • If in the bullet above, the difference between the computed total of those transactions and Field 02CPM is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , enter the computed total of the deposit transactions to Field 02DEP, then bring up the Field 02STL> underprint.

      • If research does not locate Federal Tax Deposits, enter TPNC 33. If Error Code 102 generates, enter the underprint amount to Field 02B/R.

      Field 02STL contains an entry Fields 02DEP, 02CPM, 02MRT and 02B/R are blank, zero, dash or none Delete the amount in Field 02STL and enter in Field 02B/R.
      Field 02STL is blank Field 02DEP contains an entry and Field 02CPM and/or 02MRT is blank or contains an entry Bring up Field 02STL> underprint.

    2. Valid TPNCs for EC 101 are 27, 33 and/or 90. See Exhibit 3.12.13-10.

3.12.13.29.32  (01-01-2014)
Error Code 102

  1. Fields Displayed:

    Field Display Field Name Length
    NC Notice Codes 6
    01CCC Computer Condition Codes 10
    01ARN Applied Refund Indicator 1
    02TT Total Tax Taxpayer 15
    02TT> Total Tax Computer 15
    02EC Advanced Earned Income Credit 15
    02DEP FTD Credit Claimed 15
    02CPM COBRA Premium Payments 15
    02MRW March Amount of Exempt Wages Paid 15
    02MRT Tax Credit for March Exempt Wages Paid 15
    02MRT> Tax Credit for March Exempt Wages Paid Computer Generated 15
    02STL Sub Total 15
    02B/R Balance Due/Refund 15
    02B/R> Balance Due/Refund Computer Generated 15

  2. Invalid Conditions: Error Code 102 will generate if these conditions are met in the following priority order:

    1. There is a difference between Total Tax-Computer and Total Tax-Taxpayer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and

    2. There is a difference between Balance Due/Overpayment-Computer and Balance Due/Overpayment-Taxpayer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and

    3. The computed differences in a. and b. above result in difference amounts, and the values are calculated without regard for a sign, e.g. plus or minus.

    Note:

    Subtract the AEIC (Field 02EC, if applicable to the tax quarter), FTD credit (Field 02DEP), and the COBRA Premium Assistance Payments (Field 02CPM) credit from Total Tax-Computer to Total Tax-Computer (Field 02TT>). The result is the Balance Due/Overpayment underprint (Field 02B/R>).

  3. Correction Procedures:

    1. Compare the displayed field entries with the appropriate lines on the return. Correct any coding or transcription errors. You can correct TP inconsistencies such as obvious transposition errors and/or obvious typographical errors.

      If ... Then ...
      Error Code 102 generates due to a ripple error caused by a previous math error, Ripple previous TPNC. Enter TPNC 03 or 07 as needed. Do not bring up the underprint.
      There is a difference between Field 02TT> (Total Tax-Computer) and Field 02TT (Total Tax-Taxpayer which is less than tolerance, Enter TPNC 03 to inform the taxpayer of the error.
      Fields 02DEP, 02STL and 02B/R are the same dollar amount, Delete the amounts in Field 02DEP and Field 02STL.
      Field 02DEP, Field 02STL and Field 02B/R are the same dollar amount and the total of Field 02DEP and 02B/R is less than Field 02TT, Leave the amounts in Field 02DEP, 02STL and 02B/R and enter TPNC 01
      Field 02EC is negative Leave the Field 02EC as a positive amount and send TPNC 19
      AEIC is reported on ROFT (line 17, Form 941 or Schedule B) but is not entered on Line 9 Enter the amount in Field 02EC if needed, then recalculate Field 02DEP amount by subtracting the amount of AEIC. Enter the new amount in Field 02DEP and send TPNC 90 stating "We found the amount of the Federal Tax Deposits for the quarter differs from the amount we have credited to your account"

      Note:

      Field 02EC is no longer valid for tax periods 201103 and subsequent. If taxpayer is using older version Form 941 and has an entry for Field 02EC, delete the field entry and send TPNC 90. Inform taxpayer AEIC is not valid for current (2011 and subsequent) periods.

      If ... And ... Then ...
      The taxpayer states an overpayment from a previous quarter that is not already included in Field 02DEP,   Increase Field 02DEP by the overpayment amount from the previous quarter.
      Fields 02DEP, 02CPM, 02CEM, 02MRT, 02STL (lines 11, 12a, 12b, 12e and 13) are blank, zero, dash, or none, Line 10 is GREATER than line(s) 14 or 15, Enter the amount from line 10 to Field 02B/R.
      Fields 02DEP, 02CPM, 02CEM, 02MRT, 02STL (lines 11, 12a, 12b, 12e and 13) are blank, zero, dash, or none, Line 10 is LESS than line(s) 14 or 15, Enter the amount from line 10 to Field 02B/R
      Fields 02TT and 02DEP are the same, And there is an indication on the return that a payment was received 1- Enter the remittance amount in Field 02B/R.

      2a- If line 11 is blank, zero, None, etc.: Total Field 02B/R and line 12a. Then, enter the difference between line 10 and the calculated total ( line 12a + 12e + Field 02B/R) to Field 02DEP.

      2b- If line 11 has an entry: Subtract Field 02B/R from Field 02DEP and enter the difference in field 02DEP.
      A remittance is present, Field 02B/R is blank, Enter the remittance in Field 02B/R, accordingly.
      Remittance equals Total Tax Taxpayer   Delete Field 02DEP

      Note:

      You may also correct taxpayer inconsistencies, such as obvious transposition of figures, obvious typographical errors, or erroneously changed digits.

    If ... Then ...
    Error Code 102 generates as a ripple error due to a difference between return line 5e (5d 2011 and prior) and Field 02TSM> which is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , Enter TPNC 07 to advise the taxpayer that there was an error in the Social Security/Medicare taxes computation.
    The taxpayer entered figures on both lines 14 and 15, Delete the incorrect entry on the screen display. Verify that the correct entry has been transcribed in Field 02B/R
    There is a positive indication that the taxpayer entered the amount on an incorrect line, Change the sign of the field and enter the entry to the correct field on the display screen.
    There is an FTD Penalty present on the return, or Code and Edit/SCRIPS failed to add this amount to the taxpayer's balance due, or subtract it from an overpayment, Enter in Field 02B/R the correct amount.
    Field 02B/R> is present due to the taxpayer sending a remittance larger than the amount due on the return and the return indicates the overpayment should be credited to a prior or subsequent quarter or to another account, Use CCC "X" .
    • If there is no other error on the return, the overpayment will be the underprint for Field 02B/R. Correct Field 02B/R (Balance Due/Overpayment) to reflect the "Balance Due" line on the return.
    • If zero, enter one cent ($.01) in Field 02B/R to prevent the remittance from generating into the Field and delete CCC "E" from Field 01CCC. SSPND with Action Code 351 to the Rejects unit. Rejects will transfer the payment to a prior or subsequent quarter or to another account.
    All Fields are transcribed with the correct entry, but the taxpayer made an error computing the Balance Due/Overpayment (Field 02B/R>) Assign TPNC 01.

  4. If the return has IRC Section 6020(b) implications, process per the table below.

    If ... Then ...
    A return is prepared under IRC Section 6020(b), 1- Review the return to determine if it was signed by the Revenue Officer.
    • If the return is not signed, forward the return to Rejects 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 transcription errors, and correct the return as needed. Do not correspond with the taxpayer or enter a TPNC.



    2- After transmitting the correction, enter the Field 02B/R> amount in 02B/R.

    Note:

    This same instruction is found under Error Code 100 for correcting Field 02DEP (Total Tax). Enter CCC 4 for any return prepared under Internal Revenue Code Section 6020(b). Do not correspond with the taxpayer for any unprocessable condition. See your Supervisor if the document is unprocessable.

  5. Valid TPNCs for EC 102 are 01, 03, 04, 05, 07, 08, 09, 10, 11, 16, 17, 18, 19, 20, 23, 27, 31, 32, 34, 35 and 90. When a tax examiner enters an invalid TPNC, the Math Error will continue to be displayed until a valid TPNC is entered. Once a valid TPNC is transmitted to the record, the Math Error will clear the screen. Therefore, if more than one code is applicable, they must be entered with the same transmission. See Exhibit 3.12.13-10.

3.12.13.29.33  (01-01-2014)
Error Code 103

  1. Fields Displayed:

    Field Display Field Name Field Length
    NC Notice Codes 6
    RMIT> Remittance 15
    01RCD Received Date 8
    01CCC Computer Condition Code 10
    02NP Section 02 Not Present  
    02TT Total Tax 15

  2. Invalid Condition: This error condition will generate if an RPS Indicator or a Remittance Amount is present, CCC "G" is not present, and Total Tax is zero.

  3. Correction Procedures:

    If ... Then ...
    The return indicates "Amended" , "Revised" , "Superseding" , "Duplicate" , or any other positive indication that the return is not the first one filed for the same tax period, Enter CCC "G" in Field 01CCC and the received date in Field 01RCD.
    The return is not to be "G" coded, and it is a taxable return, Enter the Total Tax amount in Field 02TT (Total Tax-Taxpayer).
    The taxpayer intended money for this quarter, Field 02TT (Total Tax) is zero, Field 01CCC does not contain a "G" and a TPNC is present on the screen from a prior error, Reassign any TPNC to clear Error Code 103. The money will refund to the taxpayer if no money is due on this account.
    The taxpayer intended money for this quarter, Field 02TT (Total Tax) is zero, Field 01CCC does not contain a "G" and no previously assigned TPNC is present on the screen, Clear Error Code 103 by entering $.01 in Field 02TT (Total Tax-Taxpayer).
    Both the document and the payment are numbered in error, SSPND with Action Code 610 to Rejects to renumber the document.
    You are unable to determine from the return where to apply the remittance amount, 1- Perform research to determine where the remittance should be applied.

    2- If there is no information via research, correspond with the taxpayer following normal procedures and suspend the record with Action Code 21X

  4. Valid TPNCs for EC 103 are 08, 27 and 90. When a tax examiner enters an invalid TPNC, the Math Error will continue to be displayed until a valid TPNC is entered. Once a valid TPNC is transmitted to the record, the Math Error will clear the screen. If more than one code is applicable, they must be entered with the same transmission. See Exhibit 3.12.13-10.

  5. Suspense/Rejects Procedures:

    If ... Then ...
    The taxpayer provides an adequate reply, Rejects should transfer the credit to the appropriate tax class or module per reply.
    Part or all of the payment is for another document tax class or module, Suspend the record with SSPND 351 to the Reject Unit. Rejects Unit will research and follow procedures in IRM 3.12.38, for Split Remittance or Total Remittance items.
    No reply or an inadequate reply is received, 1– Enter CCC"X" in Field 01CCC. ("X" will freeze the tax module from refunding or offsetting by generating a TC570.)

    2– Prepare Form 3893 to reinput the record as a non-remittance. CC SSPND 630.

    3– Prepare Form 3465, Adjustment Request, to indicate the amount to be moved to the Unidentified File (URF).

3.12.13.29.34  (01-01-2014)
Error Code 104

  1. Fields Displayed:

    Field Display Field Name Field Length
    CL Clear Code  
    02TT Total Tax 15
    02DEP FTD Payments Claimed 15
    02CPM COBRA Premium Payments 15
    02MRW March 2010 Exempt Wages Paid 15
    02MRT Tax on March 2010 Exempt Wages 15
    02MRT> Tax on March 2010 Exempt Wages Computer Generated 15
    02STL Sub Total 15
    02B/R Balance Due/Overpayment 15
    02B/R> Balance Due/Overpayment Computer Generated 15

  2. Invalid Condition: This error condition will generate if:

    1. Field 02B/R (Balance Due/Overpayment) is not zero,

    2. Fields 02B/R> (Balance Due/ Overpayment-Computer) and 02B/R (Balance Due/Overpayment-Taxpayer) are not equal but, have the digits in the same sequence, plus or minus, and

    3. The difference between Fields (02B/R> and 02B/R) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Correction Procedures:

    1. Examine the return to determine if Field 02B/R on the return is correctly edited and transcribed, based upon the taxpayer's Total Tax figure and the Federal Tax Deposit, Advanced Earned Income Credit, and COBRA Premium Assisted Payments amounts.

      If ... Then ...
      There is a positive indication that the taxpayer entered the amount on an incorrect line, Change the sign of the field.
      The Field 02B/R (Balance Due/Overpayment) is equal to zero, Use CC GTSEC 01 and delete CCC "E" from Field 01CCC.
      The amount in Field 02B/R agrees with the taxpayer's overpayment or balance due, and Error Code 104 is still present Enter "C" in the Clear Code Field.

      Note:

      The "C" in the Clear Code Field does not permit any other corrections to the record.

3.12.13.29.35  (01-01-2014)
Error Code 106

  1. Fields Displayed:

    Field Display Field Name Field Length
    CL Clear Code 1
    02DEP FTD Payments Claimed 15
    02CPM COBRA Payments Claimed 15
    02MRW March 2010 Exempt Wages Paid 15
    02MRT Tax on Exempt March 2010 Wages 15
    02MRT> Tax on Exempt March 2010 Wages Computer Generated 15
    02STL Sub Total 15
    02B/R Balance Due/Overpayment 15
    02B/R> Balance Due/Overpayment Computer Generated 15

  2. Invalid Condition: Error Code 106 will generate if

    1. Field 02B/R (Balance Due/Overpayment) is not zero,

    2. The signs of Fields 02B/R> (Balance Due/Overpayment-Computer) and 02B/R (Balance Due/Overpayment-Taxpayer) are not the same, and

    3. The amount for Field 02B/R (Balance Due/Overpayment-Taxpayer) equals the amount for Field 02DEP (FTD credit).

  3. Correction Procedures:

    1. Examine the return to determine if the FTD Credits and Balance Due/Overpayment are correctly edited and transcribed, based upon the taxpayer's Total Tax figure, and the Federal Tax Deposit, Advance Earned Income credit, and COBRA Premium Assistance Payments amounts.

      If ... Then ...
      The taxpayer's entry is misplaced, Delete the entry.

      Note: If an FTD Penalty is present, it must be included in Field 02B/R (Balance Due/Overpayment).
      The taxpayer has the FTD credit and sent a remittance for the same amount, Adjust Field 02DEP by the amount of the remittance.
      Amount of remittance is not reflected in Field 02B/R, 1- Adjust Field 02B/R by the remittance amount.

      2– If the Field 02B/R is equal to zero, use CC GTSEC 01 and delete CCC "E" from Field 01CCC

      Note:

      Corrections to Field(s) 02DEP or 02B/R must be entered and transmitted prior to entering the "C" in the Clear code. The "C" in the Clear code does not permit any other corrections to the record.

3.12.13.29.36  (01-01-2014)
Error Code 108

  1. Fields Displayed:

    Field Display Field Name Field Length
    01TXP Tax Period 6
    01SIC Schedule Indicator Code 1
    02FC Current Quarter's Fraction of Cents 7
    02SP Current Quarter's Sick Pay 15
    02TG Current Quarter's Adjustments for Tips and Group Life Insurance 15
    02TA Total Adjustments 15
    02TA> Total Adjustments Computer Generated 15
    02TT Total Tax 15
    02TT> Total Tax Computer Generated 15
    02EC Advanced Earned Income Credit (2010 and prior only) 15
    S03NP Section 03 Not Present  
    03A 1st Month Liability 15
    03B 2nd Month Liability 15
    03C 3rd Month Liability 15
    03D> Total Quarter Liability Computer Generated 15
    S05NP Section 05 Not Present  
    05A> 1st Month Liability Computer Generated 15
    S06NP Section 06 Not Present  
    06B> 2nd Month Liability Computer Generated 15
    S07NP Section 07 Not Present  
    07C> 3rd Month Liability Computer Generated 15
    07D> Total Tax Liability Computer Generated 15

  2. Invalid Conditions: The computer will add all fields in Sections 03, or 05, 06 and 07. The result is the Generated Sum of Tax Liabilities from the Record of Federal Tax Liabilities (ROFTL). Fields 03D> or 07D> is compared with Field 02TT (Total Tax-Taxpayer) minus Field 02EC (Advance Earned Income Credit) for a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Correction Procedures:

    1. Compare the screen display against the return. If there are any discrepancies, perfect the screen display. If SCRIPS captured the amount incorrectly, then correct the entry on the display screen as shown on the return or Schedule B.

      Note:

      If the Form 941 entries were captured from the return by SCRIPS, Error Code 108 will clear when the fields fall below tolerance. Input of a Schedule Indicator Code (SIC) 1 will not prevent the display from clearing. If an Error Code 108 display clears from the screen prior to the correcting of all entries in error on the ROFTL, then use Command Code (CC) GTSEC to recall the section(s) where the error occurred.

      If ... Then ...
      Line 10 is less than $2,500, If return shows entries on lines 16 (line 17 prior years) or entries on Schedule B use GTSEC for sections 03 or 05, 06 and 07 and DLSEC any sections shown.
      Line 10 is equal to or greater than $2,500.00, Follow the applicable procedures for Schedule B (next 3 IF/THEN boxes)
      On Schedule B, the lines for Month 1, Month 2, and Month 3 indicate an amount only for the month (and no amounts are shown on lines 1–31 for the month), Enter the monthly total to the last day in that month.
      The Total for any month on the Schedule B is missing, Use CC GTSEC for Section 03, 05, 06 or 07. Delete the incorrect Section. Error Code 108 will be re-displayed, or will be cleared if all corrections have been made.
      Error Code 108 is still present, after all corrections have been made (or were not needed), Enter "1" in Field 01SIC. Use CC DLSEC to delete Sections 03, 05, 06, or 07, as needed.

      Note:

      If the return is annotated "Church FICA Issue" , delete Section 03, 05, 06 or 07, as needed, and enter SIC "3" in Field 01SIC. If the taxpayer made more than one entry on a line, combine them for the entry in the field on the screen.

3.12.13.29.37  (01-01-2014)
Error Code 109

  1. Fields Displayed:

    Field Display Field Name Field Length
    01TXP Tax Period 6
    01SIC Schedule indicator Code 1
    S03NP Section 03 Not Present  
    03D> Total Quarterly Liability Computer Generated 15
    S05NP Section 05 Not Present  
    05A> Total Liability 1st Month Computer Generated 15
    S06NP Section 06 Not Present  
    06B> Total Liability 2nd Month Computer Generated 15
    S07NP Section 07 Not Present  
    07C> Total Liability 3rd Month Computer Generated 15

  2. Invalid Condition: This error code displays if Field(s) 03D>, or 05A>, or 06B>, or 07C> are present and a Schedule Indicator Code 1 or 3 is also present.

    Note:

    This error code will bypass if the return data was captured by SCRIPS or if Schedule Indicator Code 2 is present.

  3. Correction Procedures:

    1. Compare the screen with the return to determine if the tax period and the SIC were transcribed correctly. If more than one code is applicable, determine the appropriate code in the following priority order: 1, 3, or 2.

      Schedule Indicator Code Schedule Indicator Code (SIC) Criteria
      1 a. The ROFTL is incomplete, unnecessary or an out of tolerance condition exists. However, if ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , check for attachments which may reflect a liability. If found, edit the amounts in the appropriate month and day (and remove the "1" if put on in error).
      b. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ between line 11 and Fields 03D> or 07D> of the ROFTL.
      3
      a. The return shows "Church Social Security Issue" in the caption.

      b. If SIC 3 is entered per a. above, delete Section 03, 05, 06, or 07.
      2 A statement of reasonable cause is attached. This should only be entered when instructed by HQ.

3.12.13.29.38  (01-01-2014)
Error Code 110

  1. Fields Displayed:

    Field Display Field Name Field Length
    01TXP Tax Period 6
    01SIC Schedule Indicator Code 1
    S02DP Section 02 Data Present  
    S03NP Section 03 Not Present  
    03D> Total Quarterly Liability Computer 15
    S05NP Section 05 Not Present  
    05A> Total 1st Month Liability Computer Generated 15
    S06NP Section 06 Not Present  
    06B> Total 2nd Month Liability Computer Generated 15
    S07NP Section 07 Not Present  
    07C> Total 3rd Month Liability Computer Generated 15

  2. Invalid Condition: The tax period is 199812 or subsequent and the Schedule Indicator Code (Field 01SIC) is not present; Section 02 is present, but Sections 03, 05, 06 and 07 are not present.

    Note:

    This error code will bypass if the return data was captured by SCRIPS.

  3. Correction Procedures:

    1. If the SIC should be present, enter the applicable code using the following priority order "1" , "3" , or "2" in Field 01SIC.

      If ... Then ...
      Line 10 is less than $2,500.00, No SIC code is needed
      Line 10 is equal to or more than $2,500.00, Add Section 03 using CC GTSEC. Use the monthly figures from Schedule B to Section 03. Enter the amounts in dollars and cents.
      On Schedule B, the taxpayer has completed only the monthly total box (boxes) and the "Total for the quarter" box on the return & Schedule B is blank, Enter GTSEC 03. Use the monthly figures from Schedule B to input to Section 03.
      Schedule B and/or Line 17 differ from total tax by "$499.99 or more" , Enter SIC code 1

3.12.13.29.39  (01-01-2014)
Error Code 111

  1. Fields Displayed:

    Field Display Field Name Field Length
    01TXP Tax Period 6
    01SIC Schedule Indicator Code 1
    S03NP Section 03 Not Present  
    03D> Total Quarterly Liability Computer 15
    S05NP Section 05 Not Present  
    05A> Total 1st Month Liability Computer Generated 15
    S06NP Section 06 Not Present  
    06B> Total 2nd Month Liability Computer Generated 15
    S07NP Section 07 Not Present  
    07C> Total 3rd Month Liability Computer Generated 15

  2. Invalid Condition: The error code will generate if:

    1. The SIC (Field 01SIC) is "2" ; but Section 03 and Sections 05, 06 and 07 are not present.

      Note:

      This error code will bypass if the return data was captured by SCRIPS.

  3. Correction Procedures:

    1. Compare the return with the screen display. Correct any transcription errors.

      If ... Then ...
      SIC "2" is applicable, Add Section 03, or Sections 05, 06 and 07 by using CC GTSEC for the applicable section.
      The data for the Section 03 and Sections 05, 06 and 07 are not on the return, Delete SIC "2" and enter SIC "1" .

3.12.13.29.40  (01-01-2014)
Error Code 112

  1. Error Code 112 should no longer generate for Form 941. If a case is received please bring it to the attention of the HQ analyst through your P&A staff.

3.12.13.29.41  (01-01-2014)
Error Code 115

  1. Field Displayed:

    Field Display Field Name Field Length
    CL Clear Code 1
    01NC Name Control 4
    01NC> Name Control Underprint 4
    01EIN Employer Identification Number 9
    01TXP Tax Period 6
    01CCC Computer Condition Code 10
    01ARN   1
    01CBI Check Box Indicator 1
    0202 Wages, Tips and Other Compensation 15
    02ITW Total Federal Income Tax Withheld 15
    0204 Exempt from SS and Medicare Tax Indicator 15
    02SSW Taxable SS Wages 15
    02SST Taxable SS Tips 15
    02MED Taxable Medicare Wages 15
    02TSM Total SS and Medicare Taxes 15
    02QTX Section 3121 Q Tax Amount 15
    02EW Qualified Exempt Wages Paid 15
    02TW Tax on Qualified Wages Paid 15
    02TW> Tax on Qualified Wages Paid Computer Generated 15
    02BA Total Taxes before Adjustments 15
    02BA> Total Taxes before Adjustments Computer Generated 15
    02FC Current Quarter's Fraction of Cents 7
    02SP Current Quarter's Sick Pay 15
    02TG Current Quarter's Adjustments for Tips and Group Life Insurance 15
    02TA Total Adjustments 15
    02TT Total Tax 15
    02TT> Total Tax Computer Generated 15
    02EC Advanced Earned Income Credit (2010 and prior only) 15
    02DEP Total FTD Payments Claimed 15
    02CPM COBRA Assistance Premiums 15
    02STL Sub Total 15
    02B/R Balance Due/Overpayment 15
    02B/R> Balance Due/Overpayment Computer Generated 15

    Note:

    Fields 0202, 02ITW, 02QW and 02EC do not display with Forms 941-PR or 941-SS.

  2. Invalid Condition: The error condition will generate when the following conditions are present:

    1. Field(s) 02SSW, 02SST, 02MED, 02TSM, 02EW, 02TW, 02MRW, OR 02MRT are $1 billion or more, or

    2. Field 02MRW or 02MRT is $1 billion or more, and (c) and (d) is present,

    3. Computer Condition Code "E" , "F" , or "S" is present, and

    4. The amount of Field 02B/R or 02B/R> is $1 million or more.

  3. Correction Procedures:

    If ... Then ...
    Transcribed incorrectly 1- Correct the invalid entries on the screen.

    2– If after correcting the screen display, the return still meets the Invalid Condition above, then follow the procedures in the next "THEN" box below.
    The screen display agrees with the return, 1–- Check the return and attachments for an indication that it has been previously reviewed by Criminal investigation (CI). If so, continue to process.

    2– If there is no indication of a prior review by CI, then SSPND 332. Attach a Form 4227 and route to Criminal Investigation for review. In the remarks field, indicate "For review by CI."

3.12.13.29.42  (01-01-2014)
Error Code 999

  1. Field Displayed:

    1. 01TXP- Tax Period.

  2. Invalid Condition: Error Code 999 will be generated for all returns in error status at the end of the previous processing year.

  3. Correction Procedures: Since the system will revaluate the record and set validity and error codes based on the current program, the only correction procedure required for this error is for the tax examiner to transmit the record.

3.12.13.30  (01-01-2014)
Form(s) 943 and 943-PR Introduction

  1. The Form 943, Employer's Annual Tax Return for Agricultural Employees, and Form 943-PR, Planilla Para La Declaracion Anual De La Contribucion Del Patrono De Empleados Agricolas, is used to report employer and employee Federal Income Tax Withholding, (e.g. Form 943 only) and/or Social Security and Medicare taxes for agricultural workers, (Forms 943 and 943-PR)

  2. Social Security tax is payable:

    1. When an individual employee is paid cash wages of $150.00 or more for farm work during a calendar year, or

    2. When the total cash and non-cash wages paid to farm workers is $2,500.00 or more during a calendar year.

  3. Paper Form 943-PR is processed by the Ogden Submission Processing Campus (OSPC) only. Also, all Form 943 returns with an address of a U.S. Possession should be processed by OSPC only, (e.g. See the table below for the U.S. Possessions). If these types of returns are received by another Submission Processing campus, the return should be forwarded to OSPC. Refer to IRM 3.12.38, BMF General Instructions, for further details.

    American Samoa U.S. Virgin Islands
    The Commonwealth of the N. Mariana Islands Guam
    Puerto Rico Palau
    Federated States of Micronesia Marshall Islands

  4. The same instructions and TPNCs used to process Form 943 returns should also be used to process Form 943-PR returns.

  5. Address changes must be input if the change would require changing the Filing Requirement Code (FRC) from "7" (e.g. Form 943-PR) to "1" (e.g. Form 943). Otherwise, these changes may be edited on the return for transcribing.

  6. Correct all entries in dollars and cents.

  7. If an amount exceeds the maximum length allowable within a Form 943 or 943-PR field, see IRM 3.12.13.5.3, for processing procedures.

3.12.13.30.1  (01-01-2014)
Form 943/943-PR Sections and Fields

  1. Forms 943 and 943-PR contains Sections 01 through 16 in ERS. The introduction for each of these ERS Sections contains a table showing the fields within that section by the field designator, the maximum field length, the title of the field and the location of the field on Forms 943 or 943-PR.

  2. For an explanation of Priority III Field errors, see IRM 3.12.13.5.3.

  3. See Exhibit 3.12.13-6, for a current Form 943 and its field designators.

3.12.13.31  (01-01-2014)
Section 01 (Forms 943 and 943-PR)

  1. The following sections provide information concerning Form 943, and 943-PR, Section 01.

    Field
    Designator
    Field
    Length
    Title of Field Location on Return
    01NC 4 Name Control Entity Portion
    01EIN 9 Employer Identification Number Entity Portion
    01TXP 6 Tax Period Upper right portion of the entity area or to the left of the form year in YYYYMM format.
    01CCC 10 Computer Condition Codes On the bottom margin near the center of the return.
    01SIC 1 Schedule Indicator Code Forms 943 and 943-PR On the right margin opposite the end of line 1.
    01RCD 8 Received Date Center of the first page of the return.
    01EMP 7 Number of Employees Line 1
    01CRD 8 Correspondence Received Date Previously edited in the upper left corner of the return on the left margin. However, the field is no longer edited by Code and Edit

    If needed, ERS should edit to upper left corner of the return.
    01ARN 1 Applied Refund Indicator Boxes on Forms 943 and 943-PR, line 14. (line 16 2010 and prior)
    01CBI 1 Designee Checkbox Indicator Towards right-hand margin above signature line
    01PSN 9, (a "P" and 8 numerical characters) Paid Preparer Tax Identification Number (PTIN) Bottom right corner
    01PEN 9 Paid Preparer EIN Bottom right corner
    01PTN 10 Paid Preparer's Telephone Number Bottom right corner
    01CBP 5 Designee Checkbox PIN Towards right-hand margin above signature line

3.12.13.31.1  (01-01-2014)
Correcting Section 01 Screen Errors

  1. The instructions for correcting screen errors for Forms 943 and 943-PR are the same as for Forms 941. Below are the referenced subsection where the information can be found.

    1. Field 01NC.- See IRM 3.12.13.24.1.

    2. Field 01EIN. See IRM 3.12.13.24.2.

    3. Field 01TXP. See IRM 3.12.13.24.3.

    4. Field 01CCC. See IRM 3.12.13.24.5.

    5. Field 01SIC. See IRM 3.12.13.24.6.

    6. Field 01RCD. See IRM 3.12.13.24.4.

    7. Field 01EMP is the same as Field 0101 for Forms 941. See IRM 3.12.13.24.7.

    8. Field 01CRD. See IRM 3.12.13.24.9.

    9. Field 01ARN. See IRM 3.12.13.24.10.

    10. Field 01CBI. See IRM 3.12.13.24.11.

    11. Field 01PSN. See IRM 3.12.13.24.13.

    12. Field 01PEN. See IRM 3.12.13.24.14.

    13. Field 01PTN. See IRM 3.12.13.24.15.

    14. Field 01CBP. See IRM 3.12.13.24.12.

3.12.13.32  (01-01-2014)
Section 02 (Forms 943 and 943-PR)

  1. The following sections provide information concerning Forms 943, and 943-PR, Section 02.

    Field
    Designator
    Field
    Length
    Title of Field Location on Return Positive (+) or negative (-) Comments
    02TCW 14 Total Social Security Wages Line 2 +  
    02MED 14 Total Medicare Wages Line 4 +  
    02XMT 14 Total Wages Subject to Additional Medicare Tax Withholding Line 6 + Tax Year 2013 and subsequent
    02ITW 14 Income Tax Withheld Line 8 (line 6 returns prior to 2013)    
    02ADJ 14 Current Year Adjustments Line 10 +/-  
    027A 7 Number of Qualified Employees Paid Exempt Wages After Mar 31 Line 7a (year 2010) + Tax year 2010 only
    027B 14 Exempt Wages Paid Qualified Employees After Mar 31 Line 7b (Year 2010) + Tax year 2010 only
    027C 14 Social Security Tax Exemption-Taxpayer Line 7c (Year 2010) + Tax year 2010 only
    027D 14 Total Taxes Before Adjustments-Taxpayer Line 7d (Year 2010) + Tax year 2010 only
    02TT 15 Total Tax- Taxpayer Line 11 (Line 9 prior to 2013) +/-  
    02EIC 10 Advance Earned Income Credit. Line 10 (Form 943 only) + 2010 and prior only
    02DEP 15 FTD Credit Claimed Amount Line 12 (line 10 tax year 2012 and prior) +  
    02CPM 15 COBRA Premium Assistance Payments Line 13a (line 11a for tax years 2009 through 2012.) +  
    02CEM 7 Number of Recipients Receiving COBRA Line 13b (line 11b for tax years 2009 through 2012) +  
    02MRN 7 March Number of Qualified Employees Paid Exempt Wages Line 13c + 2010 only
    02MXW 14 March Exempt Wages Paid Qualified Employees Line 13d + 2010 only
    02MXT 14 March Social Security Tax Exemption -Taxpayer Line 13e + 2010 only
    02STL 15 COBRA Sub-Total Line 14 (line 12 for years prior to 2013) + (Year 2009 and subsequent)
    02B/R 15 Balance Due/Overpayment-Taxpayer Line(s) 15 and 16 (lines 13 and 14 for 2011 and 2012 ) +/-  

3.12.13.32.1  (01-01-2014)
Correcting Fields in Section 02

  1. See the chart below for instructions on correcting Section 02 Field Errors.

    If ... Then ...
    Any field is transcribed incorrectly Enter the correct amount from the return.
    Fields 027A, 027B, 027C and/or 027D has figures and the tax year is not 2010, Blank the field(s) as a misplaced entry
    Any field is negative (Except for Fields 02TT, 02ADJ and/or 02B/R), Treat the entry as a positive amount.
    Field 02EIC has entry and the tax period is 2011 or subsequent, Blank the field as a misplaced entry.
    Fields 02MRN, 02MXW and/or 02MXT has figures and the return is not for 2010 Blank the field(s) as a misplaced entry.
    Field 02XMT has an entry and Field 02MED is blank Remove Field 02XMT and place in Field 02MED.

    Note:

    Fields 02ITW and 02EIC were never applicable to Form 943-PR.

3.12.13.33  (01-01-2014)
Section 03 (Form 943 and 943-PR)

  1. The following sections provide information on Form 943 and 943-PR, Section 03.

    Field
    Designator
    Field
    Length
    Title of Field Location on Return
    03A 14 Tax Liability-1st month Line 17, A through M Directly above the "Third- Party Designee" section.
    03B 14 Tax Liability-2nd month
    03C 14 Tax Liability- 3rd month
    03D 14 Tax Liability- 4th month
    03E 14 Tax Liability- 5th month
    03F 14 Tax Liability- 6th month
    03G 14 Tax Liability- 7th month
    03H 14 Tax Liability- 8th month
    03I 14 Tax Liability- 9th month
    03J 14 Tax Liability- 10th month
    03K 14 Tax Liability- 11th month
    03L 14 Tax Liability- 12th month
    03M 15 Tax Liability- Year

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

  3. Correction Procedures: Compare the screen display against the return and any attachments to correct any transcription errors or omissions. All entries must be positive.

3.12.13.34  (01-01-2014)
Section 04 (Forms 943 and 943-PR)

  1. Section 04 contains address information of the agricultural farm filing Form 943 or Form 943-PR. The following fields provide information concerning Forms 943 and 943-PR, 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. The instructions for correcting screen errors for Forms 943 and 943-PR are the same as for Forms 941. Below are the referenced subsection where the information can be found.

    1. Field 04CON. See IRM 3.12.13.27.1.

    2. Field 04FAD. See IRM 3.12.13.27.4.

    3. Field 04ADD. See IRM 3.12.13.27.5.

    4. Field 04CTY. See IRM 3.12.13.27.6.

    5. Field 04ST. See IRM 3.12.13.27.7.

    6. Field 04ZIP. See IRM 3.12.13.27.8.

3.12.13.35  (01-01-2014)
Sections 05 - 16 (Forms 943 and 943-PR)

  1. If the taxpayer is required to file Form 943-A, Agricultural Employer's Record of Federal Tax Liability, due to them being a semi-weekly depositor, transcription errors may need to be corrected. The 943-A is used to report the taxes withheld for the whole year. Screens 05 - 16 represent all twelve months. Below is an example for the month of January. All remaining months are the same except for their alpha code.

    Field
    Designator
    Field
    Length
    Title of Field Location on Return
    05A01 14 Mon 1 day 1 Jan tax liab box, line 1
    05A02 14 Mon 1 day 2 Jan tax liab box, line 2
    05A03 14 Mon 1 day 3 Jan tax liab box, line 3
    05A04 14 Mon 1 day 4 Jan tax liab box, line 4
    05A05 14 Mon 1 day 5 Jan tax liab box, line 5
    05A06 14 Mon 1 day 6 Jan tax liab box, line 6
    05A07 14 Mon 1 day 7 Jan tax liab box, line 7
    05A08 14 Mon 1 day 8 Jan tax liab box, line 8
    05A09 14 Mon 1 day 9 Jan tax liab box, line 9
    05A10 14 Mon 1 day 10 Jan tax liab box, line 10
    05A11 14 Mon 1 day 11 Jan tax liab box, line 11
    05A12 14 Mon 1 day 12 Jan tax liab box, line 12
    05A13 14 Mon 1 day 13 Jan tax liab box, line 13
    05A14 14 Mon 1 day 14 Jan tax liab box, line 14
    05A15 14 Mon 1 day 15 Jan tax liab box, line 15
    05A16 14 Mon 1 day 16 Jan tax liab box, line 16
    05A17 14 Mon 1 day 17 Jan tax liab box, line 17
    05A18 14 Mon 1 day 18 Jan tax liab box, line 18
    05A19 14 Mon 1 day 19 Jan tax liab box, line 19
    05A20 14 Mon 1 day 20 Jan tax liab box, line 20
    05A21 14 Mon 1 day 21 Jan tax liab box, line 21
    05A22 14 Mon 1 day 22 Jan tax liab box, line 22
    05A23 14 Mon 1 day 23 Jan tax liab box, line 23
    05A24 14 Mon 1 day 24 Jan tax liab box, line 24
    05A25 14 Mon 1 day 25 Jan tax liab box, line 25
    05A26 14 Mon 1 day 26 Jan tax liab box, line 26
    05A27 14 Mon 1 day 27 Jan tax liab box, line 27
    05A28 14 Mon 1 day 28 Jan tax liab box, line 28
    05A29 14 Mon 1 day 29 Jan tax liab box, line 29
    05A30 14 Mon 1 day 30 Jan tax liab box, line 30
    05A31 14 Mon 1 day 31 Jan tax liab box, line 31

  2. Invalid Conditions: If all entries are not numeric, or if an entry is entered in Field 06B29 and it is not a leap year, a screen error will occur.

  3. For February through December, the screens are the same except for the alpha indicator and the days shown for each month.

  4. Fields 06B01- 06B29 represent February's daily liabilities.

  5. Fields 07C01 - 07C31 represent March's daily liabilities.

  6. Fields 08D01 - 08D30 represent April's daily liabilities.

  7. Fields 09E01 - 09E31 represent May's daily liabilities.

  8. Fields 10F01 - 10F30 represent June's liabilities.

  9. Fields 11G01 - 11G31 represent July's liabilities.

  10. Fields 12H01 - 12H31 represent August's daily liabilities.

  11. Fields 13I01 - 13I30 represent September's daily liabilities.

  12. Fields 14J01 - 14J31 represent October's daily liabilities.

  13. Fields 15K01 - 15K30 represent November's daily liabilities.

  14. Fields 16L01 - 16L31 represent December's daily liabilities.

3.12.13.36  (01-01-2014)
Processing Form 943/943-PR Consistency/Math Errors (Priority IV)

  1. This section provides procedures for resolving consistency and math errors (Priority IV) for Forms 943 and 943-PR returns.

  2. For an explanation of consistency and math errors (Priority IV), see IRM 3.12.13.5.4.

3.12.13.36.1  (01-01-2014)
♦Error Code 001♦

  1. Procedures for working EC 001 are the same as EC 001 for Forms 941. See IRM 3.12.13.29.1, for instructions.

3.12.13.36.2  (01-01-2014)
♦Error Code 002♦

  1. Procedures for working EC 002 are the same as EC 002 for Forms 941. See IRM 3.12.13.29.2, for instructions.

3.12.13.36.3  (01-01-2014)
♦Error Code 004♦

  1. Procedures for working EC 004 are the same as EC 004 for Forms 941. See IRM 3.12.13.29.3, for instructions.

3.12.13.36.4  (01-01-2014)
♦Error Code 005♦

  1. Procedures for working EC 005 are the same as EC 005 Forms 941. See IRM 3.12.13.29.4, for instructions.

3.12.13.36.5  (01-01-2014)
♦Error Code 006♦

  1. Procedures for working EC 006 are the same as EC 006 for Forms 941. See IRM 3.12.13.29.5, for instructions.

3.12.13.36.6  (01-01-2014)
♦Error Code 007♦

  1. Procedures for working EC 007 are the same as EC 007 for Forms 941. See IRM 3.12.13.29.6, for instructions.

3.12.13.36.7  (01-01-2014)
♦Error Code 010♦

  1. Fields Displayed:

    Field Display Field Name Field Length
    01CCC Computer Condition Codes 10
    01ARN Applied Refund Indicator 1
    01EMP Number of Employees 7
    S02DP Section 02 Present  
    S03DP Section 03 Present  
    04FAD Foreign Address 35
    S04DP Section 04 Present  
    S05NP Section 05 Not Present  
    05A> Section 05 Computer Generated Liability 15
    S06NP Section 06 Not Present  
    06B> Section 06 Computer Generated Liability 15
    S07NP Section 07 Not Present  
    07C> Section 07 Computer Generated Liability 15
    S08NP Section 08 Not Present  
    08D> Section 08 Computer Generated Liability 15
    S09NP Section 09 Not Present  
    09E> Section 09 Computer Generated Liability 15
    S10NP Section 10 Not Present  
    10F> Section 10 Computer Generated Liability 15
    S11NP Section 11 Not Present  
    11G> Section 11 Computer Generated Liability 15
    S12NP Section 12 Not Present  
    12H> Section 12 Computer Generated Liability 15
    S13NP Section 13 Not Present  
    13I> Section 13 Computer Generated Liability 15
    S14NP Section 14 Not Present  
    14J> Section 14 Computer Generated Liability 15
    S15NP Section 15 Not Present  
    15K> Section 15 Computer Generated Liability 15
    S16NP Section 16 Not Present  
    16L> Section 16 Computer Generated Liability 15

  2. Invalid Condition: This error will generate if the CCC "G" is present and fields other than 01CCC, 01CRD or TPNC 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 by initiating BMFOL research to see if the initial return is posted. Do not assume that a return indicating "Copy" is an amended, revised superseding, or duplicate return.

      If ... Then ...
      Return indicates amended, revised, supplemental, corrected or superseding, Research using 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 01, if necessary.
      All information is exactly the same, 1. Cancel the DLN. 2. Request the return be refiled in its original block. 3. DO NOT line through the DLN.
      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 ("G" coded in error), 1. Enter all necessary data in Sections 01-16.
      2. Ensure that the Section 01 fields are correct.
      3. Delete the "G" code 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.

3.12.13.36.8  (01-01-2014)
Error Code 011

  1. Procedures for working EC 011 are the same as EC 011 for Forms 941. See IRM 3.12.13.29.8, for instructions.

3.12.13.36.9  (01-01-2014)
♦Error Code 014♦

  1. Procedures for working EC 014 are the same as EC 014 for Forms 941. See IRM 3.12.13.29.9, for instructions.

3.12.13.36.10  (01-01-2014)
♦Error Code 015♦

  1. Procedures for working EC 015 are the same as EC 015 for Forms 941. See IRM 3.12.13.29.10, for instructions.

3.12.13.36.11  (01-01-2014)
♦Error Code 016♦

  1. Procedures for working EC 016 are the same as EC 016 for Forms 941. See IRM 3.12.13.29.11, for instructions.

3.12.13.36.12  (01-01-2014)
Error Code 022

  1. Fields Displayed:

    Field Display Field Name Length
    01TXP Tax Period 6
    02TCW Total Cash Wages 15
    02MED Total Medicare Wages 15
    02XMT Total Wages Subject to Additional Medicare Tax Withholding 14
    027B Exempt Wages/Tips paid Qualified Employees after March 31 15
    027C Social Security Tax Exemption 15
    027C> Social Security Tax Exemption Computer Generated 15
    027D Total Taxes Before Adjustments 15
    027D> Total Taxes Before Adjustments Computer Generated 15
    02TT Total Taxes Taxpayer 15

  2. Invalid Condition: This error condition will generate if line 2 (Field 02TCW) is greater than line 4 (Field 02MED) and the tax period is 199112 or subsequent.

  3. Correction Procedures:

    1. Compare the screen display and the return.

      If ... And ... Then ...
      The Field 02TCW entry is greater than the Field 02MED entry,   Review the return for a sufficient explanation;
      • Dependents under 18 years of age,

      • Social Security or Medicare wages exempt

      • Internal Revenue Code (IRC) Section 6020(b)

        Note:

        For IRC Section 6020(b) returns, follow the procedures shown in "IRC Section 6020 Procedures " below.

      A sufficient explanation has been provided,   Delete the wages in Fields 02TCW and 02MED.
      Field 02XMT has an entry, Field 02MED is blank or zero and Field 02TCW is equal to or less than Field 02XMT Remove the entry in Field 02XMT and enter in Field 02MED.
      There is no explanation shown on the return or an attachment, or the explanation is not satisfactory, There is a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ between Fields 02TCW and 02MED, 1- Enter the amount from line 2 of the return to Field 02MED unless the taxpayer has an entry on line 5.

      2- If there is an entry on line 5 of the return divide the entry by the Medicare rate (2.9%) and enter the result to Field 02MED of the Field display & line 4 on the return.
      There is no explanation shown on the return or an attachment, or the explanation is not satisfactory, There is a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ between the Fields 02TCW and 02MED Correspond with the taxpayer using Letter 21C,
      You receive a reply from the taxpayer,   Initiate the taxpayer's intention. Recalculate the tax lines as needed.
      You receive no reply, or an insufficient reply,   1- Increase the amount in Field 02MED so that it is equal to Field 02MED.
      2- If Error Code 100 generates, use TPNC 27 and 07.

    2. Section 6020(b) Procedures:

      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 Section 6020(b) return is incomplete or blank on lines 2, and 4, Divide the amount in Field 02TT by .153 or .133 (2011/2012) and enter the result in Field 02TCW, and in Field 02MED.

3.12.13.36.13  (01-01-2014)
Error Code 028

  1. Procedures for working EC 028 are the same as for Forms 941. See IRM 3.12.13.29.14, for instructions.

3.12.13.36.14  (01-01-2014)
Error Code 048

  1. Fields Displayed:

    Field Display Field Name Field Length
    CL Clear Code  
    01TXP Tax Period 6
    02TCW Total SS Wages 15
    02MED Total medicare Wages 15
    02XMT Total Wages Subject to Additional Medicare Tax Withholding 14
    027B Exempt Wages paid After March 31 15
    027C SS Tax Exemption 15
    027D Total Tax before Adjustments 15
    027D> Total Tax before Adjustments Computer Generated 15
    02ADJ Total Adjustments 15
    02ITW Total Income Tax Withheld 15
    02TT Total Tax Taxpayer 15
    02EIC Advanced Earned Income Credit 15

  2. Invalid Condition: This error condition will generate if Fields 02TCW, 02MED, 027B, 027C 027D, 02ADJ, and 02ITW are present, and the Field 02TT (Total Tax-Taxpayer) is zero.

  3. Correction Procedures:

    1. Check the return for misplaced entries or the screen for transcription errors.

      If ... Then ...
      Transcribed incorrectly, Enter the correct entry from the return.
      Field 02TT (Total Tax-Taxpayer) is blank or zero, but Fields 02TCW, 02MED, 02ADJ, or 02ITW contain an entry,

      Note:

      Use these procedures if the taxpayer indicates that wages were paid to a family member(s) or spouse as "exempt wages" . PL 100–203 brought spouses and children, age 18 and older, under Social Security coverage.

      1– Verify the amount for Field 02TT, Total Tax-Taxpayer, by adding and subtracting (as needed) the amounts on lines 3, 5, 6 and 8 from the return.

      2– Enter this amount in Field 02TT.
      If after comparing Form 943 or Form 943-PR, line 11 (line 9 prior years) with Field 02TT on the screen display, and the total taxes are truly zero, "None" , etc. Enter "C" in the Clear Code Field to indicate all entries are correct.

      Note: A correction to any displayed field must be entered and transmitted prior to entering the "C" in the Clear code. The "C" in the Clear code does not permit any other corrections to the record.
      If after comparing Form 943 or 943-PR, line 11 (line 9 prior years) with Field 02TT on the screen display, and the total taxes should appear other than zero, blank, "None" , etc. Enter TPNC 03 to advise the taxpayer of the error.

3.12.13.36.15  (01-01-2014)
Error Code 050

  1. Fields Displayed:

    Field Display Field Name Field Length
    01TXP Tax Period 6
    02TCW Total SS Wages 15
    02SST> SS Tax Computer Generated 15
    02MED Total Medicare Wages 15
    027B Exempt Wages/Tips Paid After March 31 15
    027C SS Tax Exemption Amount 15
    027C> SS Tax Exemption Amount Computer Generated 15
    027D Total Tax Before Adjustments 15
    02MT> Medicare Tax Computer Generated 15
    02TT Total Tax Taxpayer 15
    02TT> Total Tax Computer 15
    02EIC Advanced Earned Income Tax 15

  2. Invalid Conditions: This error condition will generate if the Advance Earned Income Credit, Field 02EIC, is greater than the allocated percentage of either the Social Security Wages or the Medicare Wages. This error is only valid for tax years prior to 2011. The allocated percentages are:

    1. 10% for tax periods 198412 and prior.

    2. 11% for tax periods 198503 through 198612.

    3. 14% for tax periods 198703 through 199012.

    4. 16.7% for tax periods 199103 through 199112.

    5. 17.6% for tax periods 199203 through 199212.

    6. 18.5% for tax periods 199303 through 199312.

    7. 15.78% for tax periods 199403 through 199412.

    8. 20.4% for tax periods 199503 through 201012.

  3. Correction Procedures:

    1. Compare the displayed screen entries with the return. Correct any fields to agree with the return.

      If ... And ... Then ...
      It appears that the Field 02DEP (line 12) amount may be the amount of the deposits, e.g. (but not limited to) computed total of TC650s, 670s, and any TC716,  

      Note:

      Follow the applicable steps below in the order provided until the error has been resolved.


      1– Initiate research to determine the amount of the deposits applied to the applicable tax period, e.g. (but not limited to) computed total of TC 650s, 670s, and any TC716.
      2- If the amount in Field 02EIC is:
      1. The same amount of the applied deposits, use CC GTSEC02. Delete the entry in Field 02EIC and enter the same total amount to Field 02DEP on the screen display.

      2. Not the same as the deposits, correspond for clarification of AEIC.


      3- If you receive a reply, compare the taxpayer's reply to the screen display. Correct any incorrect entries.
      4- If no reply, or an inadequate reply is received from the taxpayer, compute the correct amount of AEIC by multiplying the highest dollar entry from either Field 02TCW or Field 02MED by the allowable percentage for the year of the return. (The allowable percentages for each year are shown beneath the "Invalid Conditions" above.

      Note:

      If Error Code 102 subsequently generates, enter TPNCs 23 and 27.


      The entry to claim AEIC on the return is found to be correct, but the amount is greater than the allowable percentage,   1– Compute the allowable amount for the appropriate tax period, e.g. multiply the highest dollar entry from either Field 02TCW or Field 02MED, by the allowable percentage for the year of the return.

      2– Enter the computed amount in Field 02EIC.

      3– If Error Code 102 displays, assign TPNC 23.
      Fields 02TCW or 02MED, ( lines 2 or 4 of the return), are blank, or zero, Line 6 or 9 has an entry, 1– Divide the amount on line 6 or 9 by the total Social Security and Medicare percentage (.153 or .133 (2011/2012)).

      2– Enter the amount in Fields 02TCW and 02MED.
      Fields 02TCW and 02MED are blank, Fields 02SST> and 02MT> have no entry, Add a zero ("0" ) to the amount in Field 02ITW and enter this amount in Fields 02TCW and 02MED.
      Fields 02TCW and 02MED are blank, Field 02SST> or 02MT> has an entry, 1– Compute the amount for Fields 02TCW and 02MED using the available information.

      2– Enter the computed amount to Fields 02TCW and 02MED.

3.12.13.36.16  (01-01-2014)
Error Code 054

  1. Fields Displayed:

    Field Display Field Name Field Length
    CL Clear Code  
    02EIC Advanced Earned Income Credit 15
    02DEP FTD Deposits Claimed 15
    02CPM COBRA Premium Assistance Payments 15
    02TT Total Tax Taxpayer 15
    02TT> Total Tax Computer Generated 15

  2. Invalid Condition: Error Code generates when the Advance Earned Income Credit (AEIC) minus the Total Tax-Computer amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more, and the AEIC amount is greater than the total Federal Tax Deposits by ≡ ≡ ≡ ≡ ≡ ≡ or more.

  3. Correction Procedures:

    1. Compare the entries on the screen display and the return. Correct any coding or transcription errors. Then, initiate research (BMFOLT) to determine the amount of deposits applied to the applicable tax period, computed total of (but limited to) TC650s, 670s, and any TC716. (Follow the IF/THEN table in priority order). This EC will only generate on accounts prior to 2011.

      If ... Then ...
      The Field 02EIC amount is the same as the computed total of the deposits, 1- Delete Field 02EIC.

      2- Use GTSEC 02. Enter the same amount which was previously in Field 02EIC to Field 02DEP and 02STL (Rev 2009) on the screen display. Then, continue processing.
      The return line 12 is blank, and research shows no deposits (650s, 670s, and/or any TC716), and Field 02EIC is less than $2,500, Enter "C" in the Clear Code Field to resolve.
      Field 02EIC amount is not the same as the applied deposits (650s, 670s, and any TC716), but the entry is greater than $2,500. Correspond for clarification of AEIC entry.

  4. Suspense Corrections/Rejects:

    1. Process suspense correspondence as follows:

      If ... Then ...
      You receive a reply from the taxpayer, Compare the taxpayer's reply to the screen display. Correct any incorrect entries.
      No reply is received, or an inadequate reply, Enter "C" in the Clear Code Field to resolve.

3.12.13.36.17  (01-01-2014)
Error Code 056

  1. Fields Displayed:

    Field Display Field Name Field Length
    CL Clear Code  
    01SIC Schedule Indicator Code 1
    01ARN Applied Refund Indicator 1
    02TCW Total SS Wages 15
    02SST> SS Tax Computer Generated 15
    02MED Total Medicare Wages 15
    027B Exempt Wages/Tips paid after March 31 15
    027C Exempt SS Tax 15
    027C> Exempt SS Tax Computer Generated 15
    027D Tax Before Adjustments 15
    027D> Tax Before Adjustments Computer Generated 15
    02ADJ Total Adjustments 15
    02ITW Income Tax Withheld 15
    02TT Total Tax Taxpayer 15
    02TT> Total Tax Computer Generated 15
    02EIC Advanced Earned Income Tax Credit 15
    02DEP Total FTD Credit Claimed 15
    02CPM COBRA Premium Payments 15

  2. Invalid Condition: This error condition is generated if an amount is present in Field 02DEP (FTD Credit Claimed Amount) and Field 02TT (Total Tax-Computer) is zero or negative.

  3. Correction Procedures:

    1. Compare the screen display and the return.

      If ... Then ...
      Transcribed incorrectly, Enter the correct entry from the return.
      The return is truly non-taxable and FTD Credits are present, Clear the error by entering "C" in the Clear code (CL) Field.

      Note:

      A correction to any displayed field must be entered and transmitted prior to entering the "C" in the Clear code. The "C" in the Clear code does not permit any other corrections to the record.

      You are unable to determine if the return is taxable or non-taxable, Correspond with the taxpayer. Suspend with CC SSPND and Action Code 21X.
      There is no reply from the taxpayer, Enter "C" in the Clear code.


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