- 3.12.13.36 Processing Form 943/943-PR Consistency/Math Errors (Priority IV)
- 3.12.13.37 Forms 944, 944-PR, 944-SS, and 944(SP) — Introduction
- 3.12.13.38 Section 01 (Form 944, 944-PR, 944-SS, 944(SP)
- 3.12.13.39 Section 03 (Form 944, 944-PR, 944-SS, 944(SP))
- 3.12.13.40 Section 04 (Form 944, 944-PR, 944-SS)
- 3.12.13.41 Section 05 (Forms 944, 944-PR, 944-SS) Form 945–A
- 3.12.13.42 Section 06 (Form 944, 944-PR, 944-SS) Form 945-A
- 3.12.13.43 Section 07 Fields (Form 944, 944-PR, 944-SS) Form 945-A
- 3.12.13.44 Section 08 (Forms 944 and 944 PR) Form 945-A
- 3.12.13.45 Section 09 (Forms 944, 944-PR, and 944-SS) Form 945-A
- 3.12.13.46 Section 10 (Forms 944, 944-PR, and 944–SS) Form 945-A
- 3.12.13.47 Section 11 (Forms 944, 944-PR, and 944-SS) Form 945-A
- 3.12.13.48 Section 12 (Forms 944, 944-PR, and 944-SS) Form 945-A
- 3.12.13.49 Section 13 (Forms 944, 944-PR, and 944–SS) Form 945-A
- 3.12.13.50 Section 14 (Forms 944, 944-PR, 944-SS) Form 945-A
- 3.12.13.51 Section 15 (Forms 944, 944-PR, 944–SS) Form 945-A
- 3.12.13.52 Section 16 (Forms 944, 944-PR, and 944–SS) Form 945-A
- 3.12.13.53 Forms 944, 944(SP), 944-PR and 944-SS Consistency/Math Error Processing (Priority IV)
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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 02TMW 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 -
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.
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Correction Procedures:
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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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Fields Displayed:
Field Display Field Name Field Length S02NP Section 02 Not Present S03DP Section 03 Present S05DP Section 05 Present 05A> Section 05 Computer Generated Liability 15 S06DP Section 06 Present 06B> Section 06 Computer Generated Liability 15 S07DP Section 07 Present 07C> Section 07 Computer Generated Liability 15 S08DP Section 08 Present 08D> Section 08 Computer Generated Liability 15 S09DP Section 09 Present 09E> Section 09 Computer Generated Liability 15 S10DP Section 10 Present 10F> Section 10 Computer Generated Liability 15 S11DP Section 11 Present 11G> Section 11 Computer Generated Liability 15 S12DP Section 12 Present 12H> Section 12 Computer Generated Liability 15 S13DP Section 13 Present 13I> Section 13 Computer Generated Liability 15 S14DP Section 14 Present 14J> Section 14 Computer Generated Liability 15 S15NP Section 15 Not Present 15K> Section 15 Computer Generated Liability 15 S16DP Section 16 Present 16L> Section 16 Computer Generated Liability 15 -
Invalid Condition: Sections 03, 05, 06, 07, 08, 09, 10, 11, 12, 13, 14, 15 or 16 are present, but Section 02 (Tax Liability Computation) is not present.
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Correction Procedures:
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Refer to the return to determine if Sections 03, 05, 06, 07, 08, 09, 10, 11, 12, 13, 14, 15 or 16 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 from the return in the applicable Fields.There are no entries on the return for Sections 03, 05, 06, 07, 08, 09, 10, 11, 12, 13, 14, 15 or 16, Use CC DLSEC to delete the incorrect Section(s) from the screen. There are entries present on the return for Section(s) 03, 05, 06, 07, 08, 09, 10, 11, 12, 13, 14, 15 or 16, and not Section 02, Correspond with the taxpayer to secure the information concerning the tax liability for the year. 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 T-TWO to Fields 02ITW and 02TT.
3- If Error Code 100 displays, use TPNC 27 to advise the taxpayer that we adjusted the tax because we did not receive a reply to our request for additional information.
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Procedures for correcting EC 069 are the same as EC 069 for Forms 941. See IRM 3.12.13.29.23, for instructions.
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Procedures for working EC 072 are the same as EC 072 for Forms 941. See IRM 3.12.13.29.24, for instructions.
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Fields Displayed:
Field Display Field Name Field Length 02TCW Taxable SS Wages 15 027A Number of Qualified Employees Paid Exempt Wages after March 31 15 027B Exempt Wages Paid Employees after March 31 15 -
02TCW- Taxable Social Security Wages
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027A- Number of Qualified Employees Paid Exempt Wages After Mar 31
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027B- Exempt Wages Paid Qualified Employees After Mar 31
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Invalid Condition: This error condition will generate when Field 027B contains a dollar amount other than zero or blank, and Field 02TCW is zero or blank.
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Correction Procedures:
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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) 2 and 4, or line 7c (Form 943, Rev January 2011). Use Letter 21C, (Rev April 2010) paragraph H, 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, -
GTSEC01 and enter “3” to Field 01CCC. Edit the return with CCC “3”.
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Blank any entry to Field(s) 02FC, 02SP, and 027C and transmit to update the display on the screen.
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If Error Code 100 displays, enter TPNC 27, e.g. no reply or an inadequate reply to correspondence, and TPNC 35 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.
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Fields Displayed:
Field Display Field Name Field Length 02TCW Taxable SS Wages 15 02TMW Taxable Medicare Wages 15 027A Number of Qualified Employees Paid Exempt Wages After Mar 31 7 027B Exempt Wages Paid Qualified Employees After Mar 31 15 027C Tax on Exempt Wages Paid Qualified Employees After Mar. 31 15 027C> Tax on Exempt Wages/Tips Paid Qualified Employees After Mar. 31 Computer Generated 15 -
Invalid Condition: This error condition will generate when Field 027A or 027B contains a value other than zero (e.g. $0.00) and the alternate Field is zero or blank: There is a tolerance of ≡ ≡ ≡ ≡
Note:
Do not generate Error Code 085 when Fields 027A and 027B both are zero or blank.
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Correction Procedures:
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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 943 (Rev January 2011), line 7b is blank, zero, none, etc. and there is an entry on line 7c, Initiate correspondence using Letter 21C, paragraph H. Use Action Code 211 Form 943 (Rev January 2011), line 7b contains an entry, and line 7c is blank, zero, none, etc. Initiate correspondence using Letter 21C, paragraph H. Use Action Code 211
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Suspense Corrections/Rejects:
If ... Then ... Reply received Input taxpayer's entry to Field 027B or 027C. GTSEC 01 and enter the CRD into Field 02CRD Inadequate or no reply received, Blank any entry in Field(s) 027A, 027B and/or 027C. GTSEC 01 and enter "3 " in Field 01CCC. Error ripples to EC 100 -
Due to an adequate reply, enter TPNC 34 to advise the taxpayer of the correction to tax, e.g. the number of qualified employees and the amount of wages/tips reply or an inadequate reply to correspondences earned by the qualified employees must be provided on the return.
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Due to an inadequate reply or no reply, enter TPNC 27, e.g. no reply or an inadequate reply to correspondence, and TPNC 34 to advise the taxpayer of the correction to tax, e.g. the number of qualified employees and the amount of wages/tips reply or an inadequate reply to correspondences earned by the qualified employees must be provided on the return.
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Fields Displayed:
Field Display Field Name Field Length 02TCW Taxable SS Wages 15 02SST> SS Tax-Computer Generated 15 02TMW Taxable Medicare Wages 15 02MT> Medicare Tax Computer Generated 15 02ITW Income Tax Withheld 15 027A Number of Qualified Employees Paid Exempt Wages After Mar 31 7 027B Exempt Wages/Tips Paid Qualified Employees After Mar 31 15 027C SS Tax Exemption 15 027C> SS Tax Exemption Computer Generated 15 -
Invalid Condition: This error condition will generate when Field 027C is compared to Field 027C> underprint and the difference is greater than ≡ ≡ ≡ ≡
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Correction Procedures:
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Review the Screen display against the return.
If ... Then ... There is a transcription error Correct the entry per the return. The entry in Field 027C is correct per the return Enter Field 027C> underprint to Field 027C.
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Fields Displayed:
Field Display Field Name Field Length 02MXW March Amount of Exempt Wages Paid Qualified Employees 15 02MXT Tax Credit on March Exempt Wages Paid Qualified Employees- Taxpayer 15 02MST> Tax Credit on March Exempt Wages Paid Qualified Employees Computer Generated 15 -
Invalid Condition: This error condition will generate when Field 02MXT, Tax Credit on March Exempt Wages Paid Qualified Employees, is compared to Field 02MXT> underprint, Tax Credit on March Exempt Wages Paid Qualified Employees Computer Generated, and the difference is ≡ ≡ ≡ ≡ ≡ or more.
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Correction Procedures:
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Review the screen display against the return.
If ... Then ... There is a transcription error, Correct the entry on the screen The entry in Field 02MXT is correct per the return, -
Enter Field 02MXT> underprint to Field 02MXT
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If, after entering 02MXT> underprint to Field 02MXT, Error Code 101 displays, then bring up the Field 02STL> underprint and enter to Field 02STL.
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Fields Displayed:
Field Display Field Name Field Length NC Notice Codes 6 01TXP Tax Period 6 01CCC Computer Condition Codes 10 02TCW Total SS Wages 15 02SST> Computer Generated SS Tax 15 02TMW Total Medicare Wages 15 027B Exempt SS Wages 15 027C SS Tax Exempt Wages 15 027C> SS Tax on Exempt Wages Computer Generated 15 027D Total Tax Before Adjustments 15 027D> Total Tax Before Adjustments Computer Generated 15 02MT> Medicare tax Computer Generated 15 02ADJ Total Adjustments to Tax 15 02ITW Total Income Tax Withheld 15 02TT Total Tax Taxpayer 15 02TT> Total Tax Computer Generated 15 -
Invalid Conditions—This error condition is generated if the Field 02TT (Total Tax-Taxpayer) differs with Field 02TT> (Total Tax-Computer) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
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Correction Procedures:
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Compare the displayed Field entries with the appropriate lines on the return. Correct any coding or transcription errors. Correct any coding or transcription errors. Correct taxpayer inconsistencies such as transposition or typographical error. Make sure any negative figure is followed by a (-) sign.
If ... Then ... The taxpayer used the correct figures, but entered it on the wrong line, Make the correction on the screen. Do not attempt to correct any computer generated Fields. Tax Period is incorrect Correct and insure correct tax rate is used Tax Period cannot be determined Use current period. Any of the following situations are true: -
Taxpayer failed to compute the correct Social Security tax on line 3, Form 943, or 943-PR, or
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Taxpayer does not compute the correct Medicare tax on line 5, Form 943 or 943-PR, or
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Error Code 100 generated due to changes made to resolve Error Code 022,
Note:
For line(s) 2 and/or 4 on IRC Section 6020(b) returns, see procedures in table, "IRC Section 6020(b)" , below.
Enter TPNC 07 in the appropriate Field on the screen.
Exception: Do not assign TPNC 07 if taxpayer has a sufficient explanation, (e.g., dependents under 18 years of age, employees did not meet test, or Social Security or Medicare wages exempt, etc.). Instead, blank Field 02TCW and/or 02TMW.The taxpayer does not provide the Social Security wage amount (on the return, line 2), and/or Medicare wage amount (on the return, line 4), but there is a taxpayer tax entry on line 3 ( on Social Security wages) and/or line 5 (on the Medicare wage amount), or there is only an entry on line 9 (Field 02TT). Divide the Social Security tax and/or Medicare tax amount by the appropriate tax rate, or multiply the Social Security and/or Medicare tax amount by the factor shown in the table, "Social Security/Medicare Tax Rates and Factors" , in IRM 3.12.13.29.31 The discrepancy in Social Security or Medicare tax is too great a difference ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ between the Total Tax-Computer and Total Tax-Taxpayer which would result in a refund to the taxpayer, Correspond with the taxpayer to verify the Social Security or Medicare wage amount. -
If a reply is received, take appropriate action to adjust the display Fields.
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If no reply or an insufficient reply, and the Total Tax –Computer is greater than Total Tax-Taxpayer, send TPNC07 and 27. If the Total Tax-Computer is less than Total Tax-Taxpayer, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Total Tax-Computer and Total Tax-Taxpayer to Field 02ITW (line 6, Federal Income Tax Withheld).
The screen display (all of the following):
Field 02SST> is the same amount as line 3,
Field 02MT> is the same amount as line 5,
Field 02ITW is the same transcribed amount as line 6, and
Field 02ADJ is the same entry as line 8, but Field 02TT> (Total Tax-Computer) is LESS than 02TT (Total Tax-Taxpayer) by more than ≡ ≡ ≡ ≡ ,Correspond with the taxpayer for an explanation of the difference in tax.
If a reply is received: Enter the amount verified by the taxpayer.
IF a reply is not received:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡The screen display (all of the following):
Field 02SST> is the same amount as line 3,
Field 02MT> is the same amount as line 5,
Field 02ITW is the same transcribed amount as line 6, and
Field 02ADJ is the same entry as line 8, but Field 02TT> (Total Tax-Computer) is GREATER than 02TT (Total Tax-Taxpayer) by more than ≡ ≡ ≡ ≡Assign TPNC 03. The adjustment line (Field 02ADJ) entry is shown as a decrease, e.g. entry is subtracted, or shown with a minus [-] sign, etc., 1. Review the left margin of the Form 943 or 943-PR for an indication by Code and Edit that the adjustment was either substantiated by a Form 941c (if the return is for tax year 2008 or prior), or 943–X (for a tax year 2009 and subsequent), or was disallowed. -
If a Form 941c or 943-X was attached to substantiate an adjustment entry, Code and Edit will edit the left margin with the phrase (or a similar phase), "941-C to AM" or "943-X to AM " and route the original Form 941c or 943–X to AM.
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Code and Edit will "X" the entry and allow AM to process the entry adjustment separately. This may cause Error Code 100 to generate. (See next row.)
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If the entry was disallowed, e.g. due to a 941c being filed for a 2009 or subsequent tax year, Code and Edit will edit the left margin with the phrase (or a similar phase), "102c to taxpayer" , and "X" the entry on the adjustment line.
The adjustment line entry was edited by Code and Edit with an "X" to allow AM to process the entry separately, e.g. indicated by Code and Edit in the left margin "941c (or 943-X) to AM" This will cause Error Code 100 to generate. Enter TPNC 31 to advise the taxpayer that the adjustment is being processed separately. The adjustment line entry was edited by Code and Edit with an "X" to disallow the entry, e.g. indicated by Code and Edit in the left margin, "102c to taxpayer" , This will cause Error Code 100 to generate. Enter TPNC 32 to advise the taxpayer that they should file Form 943-X for future adjustments. The taxpayer indicates tax due on the Form 943 or 943-PR, but Field 02TT is blank, Enter the Field 02TT> amount in Field 02TT. The amount in Field 02SST> or 02MT> agrees with the taxpayer's withholding amount entry, Assume the taxpayer has reversed entries of the Withheld Income Tax Amount (i.e. Field 02ITW) and Social Security or Medicare taxes (i.e. Fields 02SST> or 02MT>). Correct the entry of Field 02ITW, 02TCW, or 02TMW. Field 02ITW and the Withheld Tax Amount on the return are blank, and Fields 02SST> and 02MT> are correct, 1– Compare Field 02TT to Field 02TT>.
2– Enter the difference in Field 02ITW.Note:
Errors in total tax (Math Error 100) are determined independent of whether or not an error exists in Balance Due/ Overpayment (e.g. Math Error 102). TPNCs can be assigned for an error in the Total Tax Field with no error in the Balance Due/Overpayment Field.
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For IRC Section 6020 (b) returns follow procedures below.
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 not signed, forward to Rejects to have the DLN cancelled. After the DLN is cancelled, route the return to:
Internal Revenue Service
500 West 12th Street
Room 110
Vancouver, Washington 98960–2871 -
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 can not change. The Total Tax amount must be assessed as submitted by the Revenue Officer.
A CCC 4 is not present Enter CCC 4 in Field 01CCC. An IRC Section 6020(b) return is incomplete or blank on line(s) 2 or 4, Divide the amount in Field(s) 02TCW or 02TMW by .153 or .133 (2011). Enter the result in Field 02TCW and/or 02TMW. -
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Valid TPNCs for EC 100 are 01, 02, 03, 04, 05, 06, 07, 08, 21, 22, 27, 31, 32 and 90. See Exhibit 3.12.13-9.
Note:
If Code and Edit initiated correspondence to resolve the condition causing the Error Code 100 and "No Reply" is indicated, assign TPNC 27 and the correct TPNC before releasing. When an invalid TPNC is entered, the Error Code will continue to be displayed until a valid TPNC is entered. However, once a valid TPNC is transmitted to the record, the Error Code will clear the screen. Therefore, if more than one code is applicable, they must be entered with the same transmission.
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Fields Displayed:
Field Display Field Name Field Length 02DEP Federal Tax Deposits 15 02CPM COBRA Premium Assistance Payments 15 02CEM Number of Recipients Receiving COBRA 7 02MXW March Amount of Exempt Wages Paid Qualified Employees 15 02MXT SS Tax Credit on March Exempt Wages Paid Employees 15 02MXT> SS Tax Credit on March Exempt Wages Paid Employees Computer Generated 15 02STL Sub Total COBRA and March Exempt Taxes 15 02STL> Sub Total COBRA and March Exempt Taxes Computer Generated 15 02B/R Balance Due/Overpayment 15 02B/R Balance Due/Overpayment Computer Generated 15 -
Invalid Condition: An error will generate if Field 02STL (total of Fields 02DEP, 02CPM, and/or 02MXT) do not match the underprint Field 02STL>.
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Correction Procedures:
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Compare the screen display and the return and correct all transcription errors.
Note:
If Field(s) 02DEP, 02CPM and/or 02MXT are corrected, transmit to correct the underprint calculation in Field 02STL> and the Balance Due/ Overpayment amount in Field 02B/R>.
If ... And ... Then ... Field 02STL contains an entry Field 02DEP contains an entry and Fields 02CPM and/or 02MXT is blank Bring up the Field 02STL underprint. Field 02STL contains an entry Field 02DEP contains an entry and Fields 02CPM and or 02MXT contain an entry Enter TPNC 33. If EC 102 generates, enter the underprint amount to Field 02B/R. Field 02STL contains an entry Field 02DEP is blank and Fields 02CPM and/or 02MXT contains an entry Conduct research (e.g. BMFOLI) to determine whether the entry in Field 02CPM is the total Federal Tax Deposits., e.g. (but not limited to) TCs 650, 670, and any 716. -
If research determines there were Federal Tax Deposits and the difference between Field 02STL and the total amount located during research is within the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ move the entry in 02CPM to 02DEP.
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If research determines there were Federal Tax Deposits and the difference between Field 02STL and the total amount located during research is greater than the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ then enter the computed total of the deposits to Field 021DEP and bring up Field 02STL>.
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If research locates no Federal Tax Deposits, or the difference (i.e. between Field 02STL on the return and the total located in research) is greater than the tolerance amount, bring up the Field 02STL> underprint.
Field 02STL contains an entry Field 02DEP is blank and Fields 02CPM and or 02MXT is blank Conduct research (e.g. BMFOLI) to determine whether there are Federal Tax Deposits, e.g. TCs 650, 670, and any 716. -
If there are Federal Tax Deposits, then compute the total of all TCs 650, 670 and any 716 and enter the result in Field 02DEP. Then, enter the new underprint amount for Field 02STL>.
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If you find while researching that a TC 610 is present, remove that amount from Field 02STL and input to Field 02B/R.
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If there is no record of a federal tax deposit, enter TPNC33. If EC 102 generates enter the underprint amount to Field 02B/R.
Field 02STL is blank Field 02DEP contains an entry and Fields 02CPM and/or 02MXT is blank or contains an entry Bring up the Field 02STL> underprint. Field 02STL is blank Field 02DEP is blank and Fields 02CPM and/or 02MXT contains an entry Bring up the Field 02STL> underprint. -
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Valid TPNCs for EC 100 are 27, 33, and 90. See Exhibit 3.12.13-9.
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Fields Displayed:
Field Display Field Name Field Length NC Notice Codes 6 01CCC Computer Condition Codes 10 01ARN Applied Refund Indicator 1 02TT Total Tax 15 02TT> Total Tax Computer Generated 15 02EIC Advanced Earned Income Tax 15 02DEP FTD Credits Claimed 15 02CPM COBRA Premium Payments 15 02MXW March Amount of Exempt Wages Paid Qualified Employees 15 02MXT SS Tax Credit on March Exempt Wages Paid Qualified Employee 15 02MXT> SS Tax Credit on March Exempt Wages Paid Qualified Employee Computer Generated 15 02STL Sub Total COBRA and March Exempt Taxes 15 02B/R Balance Due/Overpayment 15 02B/R> Balance Due/Overpayment Computer Generated 15 02FD FTD Penalty 15 02FD> Computer Generated FTD Penalty 15 -
Invalid Conditions: Error Code 102 will generate if these conditions are met in the following priority order:
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There is a difference between Total Tax-Computer and Total Tax-Taxpayer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and
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There is a difference between Balance Due/Overpayment-Computer and Balance Due/Overpayment-Taxpayer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and
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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.
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Correction Procedures:
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If the difference between Total Tax-Computer and Total Tax -Taxpayer is greater ≡ ≡ ≡ ≡ ≡ ≡ Total Tax-Computer will be used to compute the Balance due/Overpayment.
If ... Then ... Transcribed incorrectly, Enter the correct entry from the return. There is a difference between Field 02TT> (Total Tax-Computer) and Field 02TT (Total Tax-Taxpayer) Enter TPNC 03 to inform the taxpayer that an error was made in computing total tax. Field 02DEP, Field 02STL and Field 02B/R are the same -
Initiate research, (e.g. such as BMFOLT) to determine the total amount of the Federal Tax deposits applied to the applicable tax period, e.g. total of transaction codes (but not limited to) 650, 670, and any TC716.
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If the difference between the total of the deposits on the account and the Field 02DEP entry is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ than blank the Field 02B/R.
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If the difference between the total of the deposits on the account and the Field 02DEP entry is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ enter the result in Field 02DEP and the underprint for Fields 02STL and 02B/R.
Fields 02TT, 02DEP and 02B/R are the same Delete Field 02DEP Remittance equals Field 02TT Delete Field 02DEP Remittance is present and Field 02B/R is blank Enter the remittance amount in Field 02B/R Field 02EIC is negative Leave the field as a positive amount and send TPNC 19 AEIC is reported on ROFT (line 17 TY 2009 and 2010 or on Form 943-A) but is not entered on line 10, Form 943 Enter the amount in Field 02EIC, and then recalculate Field 02DEP by subtracting the amount of AEIC. Send TPNC 90 stating "We found the amount of Federal Tax Deposits for the year differs from the amount we have credited to your account." Lines 13 and 14 (lines 15 and 16 for 2010) are blank, zero or "None" Enter the underprint in Field 02B/R. The taxpayer entered figures on both lines 13 and 14, Delete the incorrect entry on the screen display. Verify that the correct entry has been transcribed in Field 02B/R. Field 02B/R is present due to the taxpayer sending a remittance larger than the amount due on the return, and the return indicates that the overpayment should be credited to a prior or subsequent year or to another account, Enter CCC "X" on the screen display -
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.
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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 year 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 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 to:
Internal Revenue Service
500 West 12th Street
Room 110
Vancouver, Washington 98660–2871 -
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:
Field 02EIC is no longer valid for Forms 943 Tax Years 2011 and subsequent. If the TP is using an older version Form 943 for a current year, and has an entry for AEIC, delete the field and send TPNC 90 informing the TP that AEIC is no longer valid.
If ... And ... Then ... The taxpayer states an overpayment from a previous year that is not already included in Field 02DEP Increase Field 02DEP by the overpayment amount from the previous year Field 02DEP, 02CPM, 02CEM, 02MXN, 02MXW, 02MXT, and 02STL (e.g. return lines 12, 13a, 13b, 13c, 13d, 13e, and 14) are blank, zero, dash, or "None " Line 9 is GREATER than line 13 or 14, Enter the amount from line 9 ( to Field 02B/R Field 02DEP, 02CPM, 02CEM 02MXN, 02MXW, 02MXT, and 02STL (e.g. return lines 12, 13a, 13b, 13c, 13d, 13e, and 14) are blank, zero, dash, or "None " Line 9 is LESS than line 13 or 14, Enter the amount from line 9 to Field 02B/R Fields 02TT and 02DEP are the same, You can determine there was a remittance with the return and the amount of the remittance, 1–Enter the remittance amount in Field 02B/R. -
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Valid TPNCs for Error Code 102 are 01, 03, 04, 05, 07, 08, 17, 18, 19, 20, 21, 22, 23, 27 and 90. See Exhibit 3.12.13-9.
Note:
If Code and Edit initiated correspondence to resolve the condition causing the Error Code 102 and "No Reply" is indicated, assign TPNC 27 and the correct TPNC before releasing. When a tax examiner enters an invalid TPNC, the Error Code will continue to be displayed until a valid TPNC is entered. Once a valid TPNC is transmitted to the record, the Error Code will clear the screen. If more than one code is applicable, they must be entered with the same transmission.
-
-
Fields Displayed:
Field Display Field Name Field Length NC Notice Code 6 RMIT> Remittance Amount 15 01CCC Computer Condition Codes 10 01RCD Received Date 6 S02NP Section 02 Not Present 02TT Total Tax 15 02TT> Total Tax Computer 15 -
Invalid Condition: This error condition will generate if an RPS indicator or a remittance amount is present, CCC "G" is not present and Field 02TT (Total Tax-Taxpayer) is zero.
-
Correction Procedures:
-
Compare the screen display and the return.
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 the money for this tax period, Field 02TT (Total Tax-Taxpayer) is zero, Field 01CCC does not contain a" G" , and a TPNC is present on the screen from a prior error, Reassign any TPNC Field to clear Error Code 103. The money will refund to the taxpayer if no money is due on the account. The taxpayer intended the money for this tax period, Field 02TT (Total Tax-Taxpayer) 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 payment are numbered in error, SSPND with Action Code 610 to Rejects to renumber the document. None of the above conditions CC SSPND with Action Code 355. 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
-
-
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 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). -
Valid TPNCs for EC 103 are 27 and 90, in addition to any previously assigned. See Exhibit 3.12.13-9.
-
Fields Displayed:
Field Display Field Name Field Length CL Clear Code 1 02TT Total Tax 15 02TT> Total Tax Computer Generated 15 02DEP FTD Deposits Claimed 15 02CPM COBRA Premium Assistance Payments 15 02MXW March Exempt Wages Paid 2010 15 02MXT Tax on March Exempt Wages Paid 2010 15 02MXT> Tax on March Exempt Wages Paid 2010 Computer Generated 15 02STL Sub Total 15 02B/R Balance Due/Overpayment 15 02B/R> Balance Due/Overpayment Computer Generated 15 02FD FTD Penalty 15 02FD> FTD Penalty Computer Generated 15 -
Invalid Condition: This error condition will generate if:
-
Field 02B/R (Balance Due/Overpayment) is not zero, and
-
Fields 02B/R> (Balance Due/Overpayment) and 02B/R (Balance Due/Overpayment) are not equal but, have digits in the same sequence, plus or minus, and
-
The difference between Fields 02B/R> (Balance Due/Overpayment-Computer) and 02B/R (Balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
-
-
Correction Procedures:
-
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 (2010 and prior), and COBRA Premium Payments Field amounts.
If ... Then ... There is a positive indication that the taxpayer entered the amount on an incorrect line, Change the sign of the Field. Field 02FD is present, Check Field 02B/R to ensure the FTP penalty was included in the amount. If not, compute the amount by adding Field 02FD to Field 02B/R., Enter the corrected amount in Field 02B/R. The Field 02B/R (Balance Due/Overpayment) is equal to zero, Use GTSEC 01 and delete CCC E from Field 01CCC. The amount in Field 02B/R agrees with the taxpayer's overpayment or balance due, Enter "C" in the Clear code Field.
Note: The "C" in the Clear code Field does not permit any other corrections to the record.
-
-
Fields Displayed:
Field Display Field Name Field Length CL Clear Code 1 01TXP Tax Period 6 01SIC Schedule Indicator Code 1 02ITW Income Tax Withheld 15 02ADJ Adjustments to Tax 15 02TT Total Tax 15 03A - 03M Monthly Liability Breakdown 15 03M> Computer Generated Total Liabilities 15 S05DP - S16DP Sections 05 thru 16 Present S05A> 1st Month Computer Generated Liability 15 S06B> 2nd Month Computer Generated Liability 15 S07C> 3rd Month Computer Generated Liability 15 S08D> 4th Month Computer Generated Liability 15 S09E> 5th Month Computer Generated Liability 15 S10F> 6th Month Computer Generated Liability 15 S11G> 7th Month Computer Generated Liability 15 S12H> 8th Month Computer Generated Liability 15 S13I> 9th Month Computer Generated Liability 15 S14J 10th Month Computer Generated Liability 15 S15K> 11th Month Computer Generated Liability 15 S16L> 12th Month Computer Generated Liability 15 T-TWO> Total Form 943-A Liability Computer Generated 15 -
Invalid Condition: This error condition will generate when:
-
The Field 01SIC (Schedule Indicator Code) is equal to "1" and Section 03 (monthly liability from line 17), or Section(s) 05 through 16 (daily liability from Form 943-A), are present.
-
The sum of the monthly tax liability in Section 03, and/or the daily tax liability in Section(s) 05 through 16 is compared to the Total Tax -Taxpayer (Field 02TT) for a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . If the difference is out of tolerance, a math error is generated.
-
-
Correction Procedures:
-
Compare the return with the displayed Fields. Make any corrections necessary using CC GTSEC.
Note:
To prevent Error Code 108 from clearing when Fields fall below tolerance, enter a "1" in the SIC Field. This provides the examiner an opportunity to perfect Section(s) 03 and/or 05 through 16.
If ... Then ... Line 9 is less than $2,500.00 Enter a SIC 1, and DLSEC the applicable sections. Line 9 is greater than $2,500.00 Follow the applicable procedures for Form 943–A. On Form 943–A, the lines for the "Total for month" , i.e. line A, line B, line C, (and so on for each of the months) indicate an amount only for each month (and no amounts are shown on the daily lines within any month), Enter the amount(s) from Form 943–A, "Total for month" to the last day of each month. The total for any month on the Form 943–A is missing, Use GTSEC for Section(s) 05 through 16. Delete the incorrect Section. Error 108 will be re-displayed., or will clear if all the corrections have been made. Note:
If the taxpayer made more than one entry on a line, combine the amounts to a single entry in the Field of the screen.
-
-
Fields Displayed:
Field Display Field Name Field Length 01TXP Tax Period 6 02TT Total Tax 15 02TT> Total Tax Computer Generated 15 02EIC Advanced Earned Income Credit (2010 and prior) 15 02CPM COBRA Premium Assistance Payments 15 02STL Sub Total 15 02B/R Balance Due/Overpayment 15 02FD FTD Penalty 15 02FD> FTD Penalty Computer Generated 15 -
Invalid Condition—Field 02FD> is the maximum assessable penalty amount. It is compared to Field 02FD- Taxpayer. The Error Code 112 generates when Field 02FD> amount is greater than Field 02FD and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
-
Correction Procedures:
If ... Then ... No corrections are necessary to any of the displayed Fields, 1– Correct Field 02FD to agree with the underprint amount, Field 02FD>. This will generate Error Code 102.
2–To clear Error Code 102, call up the underprint Field 02B/R>. If the correction takes the balance to zero, use CC GTSEC 01 and delete CCC "E" from Field 01CCC.
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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 Refund Indicator 1 01CBI Check Box Indicator 1 02TCW Total SS Wages 15 02TMW Total Medicare Wages 15 02ITW Total Income Tax Withheld 15 027B Exempt Wages Paid After March 31st (2010 only) 15 027C SS Tax on Exempt Wages (2010 only) 15 027C> SS Tax on Exempt Wages (2010 only) Computer Generated 15 027D Total Tax Before Adjustments 15 027D> Total Tax Before Adjustments Computer Generated 15 02ADJ Adjustments to Tax 15 02TT Total Tax 15 02TT> Total Tax Computer Generated 15 02EIC Advanced Earned Income Credit (2010 and prior) 15 02DEP FTD Credits Claimed 15 02CPM COBRA Premium Assistance Payments 15 02STL Sub Total 15 02B/R Balance Due/Overpayment 15 02B/R> Balance Due/Overpayment Computer Generated 15 Note:
Fields 02ADJ and 02EIC will not generate for form 943-PR.
-
Invalid Condition: The error code will generate when all of the following conditions are present:
-
Field(s) 02TCW, 02TMW, 02ITW, or 027B, 027C, or 027D are ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
-
Computer Condition Code "E" , "F" , or "S" are present, with
-
The amount of Field 02B/R or 02B/R> for ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
-
-
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."
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Field Displayed:
-
01TXP - Tax Period
-
-
Invalid Condition: This error condition will generate for all returns in error status at the end of the previous processing year.
-
Correction Procedures: Since the system will reevaluate 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.
-
This section provides procedures for correcting Field errors (Priority III) for Forms 944, 944-PR, 944-SS and 944(SP).
-
Forms 944, 944-PR, 944-SS and 944(SP) contain Sections 01 through 16 under 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 the Form 944, 944-PR, 944-SS and 944(SP) (if applicable) below.
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If a dollar amount exceeds the maximum length allowable within a Form 944, 944-PR, 944-SS, or 944(SP) Field, see IRM 3.12.13.5.3 for processing procedures. See Exhibit 3.12.13-6, for a current Form 944 and its Field Designators.
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Forms 944-PR, Planilla Para La Declaracion Anual del Patrono, and 944-SS, Employer's Annual Federal Tax Return–American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands, are filed to report Social Security and Medicare taxes only. These forms are filed by employers having their principal place of business in Puerto Rico or one of the United States Possessions (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, U.S. Virgin Islands, etc.), respectively.
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Form 944(SP), Declaracion Federal ANUAL de Impuestos del Patrono o Empleador, is used to report Federal Income Tax Withheld, Social Security and Medicare taxes as Form 944 does, but is available only over the counter for U.S. filers who speak Spanish only. It is processed under the Form 944 MFT and tax class.
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Any Form 944, 944-PR, 944-SS or 944(SP) return with an address of any U.S. Possession below should be forwarded to OSPC for processing:
American Samoa U.S. Virgin Islands The Commonwealth of the Northern Mariana Islands Guam Puerto Rico Palau Federated States of Micronesia Marshall Islands -
Apply the Form 944 line processing procedures contained in IRM 3.12.13 when processing Forms 944-PR, 944-SS or 944(SP).
-
For Forms 944-PR or 944-SS money amounts are not allowable in Fields 0201 (Total Compensation), 0202 (Amount of Income Tax Withheld), 02NP (Adjustment to Withholding), and 02EIC (Advance Earned Income Credit). If an amount is shown in one of these Fields, it must be deleted.
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The following sections provide information concerning Form 944, 944-PR, 944-SS and 944(SP), Section 01.
Field
DesignatorField
LengthTitle of Field Location on Return 01NC 4 Name Control/Check Digits Entity portion Note:
For procedures regarding a "In Care of Name" , see Field 04CON.
01EIN 9 Employer Identification Number Entity portion 01TXP 4 Tax Period In the upper right portion of the entity area in YYYY format 01RCD 8 Received Date Face of the document 01CCC 10 Condition Codes On the bottom margin towards the center of the return. 01SIC 1 Schedule Indicator Code In the right margin opposite the end of line, Part 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 the upper left corner of the return01ARN 1 Applied Refund Indicator The boxes on the right hand side opposite: -
the end line 14 (Rev 2009 and subsequent)
-
the end of line 12 (Rev 2008 and prior)
01DST 2 Deposit State Note:
This Field is applicable only to Forms 944 and 944(SP) with a U.S. address.
-
Line 16, Page 2 (Rev 2009 and subsequent)
-
Line 14, Page 2 (Rev 2008 and prior)
01CBI 1 Designee Checkbox Indicator If "Yes" box is checked in Part 4 on page 2, by taxpayer 01CBP 5 Designee Checkbox PIN Part 4, page 2 01PSN 9, (a "P" and 8 numerical characters) Paid Preparer's SSN or Preparer's Tax Identification Number (PTIN) Bottom of page 2 under Part 5 01PEN 9 Firm or Paid Preparer's EIN Bottom of page 2, under Part 5 01PTN 10 Paid Preparer's Telephone Number Bottom of page 2, under Part 5 -
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Correction Procedures: The instructions for correcting screen errors for Forms 944 are the same as for Forms 941. Below are the referenced subsection where the information can be found.
-
Field 01NC. See IRM 3.12.13.24.1 for instructions.
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Field 01EIN. See IRM 3.12.13.24.2 for instructions.
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Field 01TXP. See IRM 3.12.13.24.3 for instructions.
-
Field 01RCD. See IRM 3.12.13.24.4 for instructions.
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Field 01CCC. See IRM 3.12.13.24.5 for instructions.
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Field 01SIC. See IRM 3.12.13.24.6 for instructions.
-
Field 01CRD. See IRM 3.12.13.24.9 for instructions.
-
Field 01ARN. See IRM 3.12.13.24.10 for instructions.
-
Field 01DST. See IRM 3.12.13.24.11 for instructions.
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Field 01CBI. See IRM 3.12.13.24.12 for instructions.
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Field 01CBP. See IRM 3.12.13.24.13 for instructions.
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Field 01PSN. See IRM 3.12.13.24.14 for instructions.
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Field 01PEN. See IRM 3.12.13.24.15 for instructions.
-
Field 01PTN. See IRM 3.12.13.24.16 for instructions.
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The following sections provide information on Forms 944, 944-PR, 944-SS, or 944(SP), Section 02. If a Field is not applicable to the form, it is indicated in the "Comments" column.
Field
DesignatorField
LengthTitle of Field Dollars and cents= $/c Location on Return Positive (+) or negative (-) entry Comments 0201 15 Total Compensation $/c Line 1 + Not applicable to Forms 944-PR or 944-SS 0202 14 Amount Withheld Income Tax $/c Line 2 + Not applicable to Forms 944-PR or 944-SS 0203 1 Exempt From Social Security and Medicare Taxes Indicator Line 3 If the box contains an entry, Code and Edit should edit CCC B on the return. ERS examiners should review Field 01CCC for a "B" if line 3 contains an entry and Field 01CCC displays. Correct any errors and continue processing. 024A 14 Taxable Social Security Wages $/c Line 4a, Column 1 + 024B 14 Taxable Social Security Tips $/c Line 4b, Column 1 + 024C 14 Taxable Medicare Wages and Tips $/c Line 4c, Column 1 + 024D 15 Total Social Security and Medicare Tax Amount- Taxpayer $/c Line 4d + 025A 7 Number of Qualified Employees Paid Exempt Wages After Mar 31 (2010 only) Numeric Line 5a + Note:
Beginning January 2011, for Form 944, 944-PR, and 944-SS all alpha designations of 0205> were replaced with 025D>.
025B 14 Exempt Wages Paid Qualified Employees After Mar 31 (2010 only) $/c Line 5b + 025C 14 Tax on Exempt Wages Paid Qualified Employees -Taxpayer (2010 only) $/c Line 5c + 025D 15 Total Tax Before Adjustments- Computer $/c Line 5 (2011 and subsequent) Line 5d (Rev January 2011), or line 5 (Rev January 2009 and prior) + 02CA 14 Current Year's Adjustments (2009 and subsequent) $/c -
Line 6- Rev. Jan. 2009 through. Jan. 2012
-
Line 6a, (Rev Jan 2008 and prior)
+/- 02FIT 14 Prior Years' Income Tax Withholding Adjustments $/c Line 6b (Rev 2008 and prior) +/- Not applicable to Forms 944 or 944(SP) for tax periods beginning after December 31, 2008, or for any years Form(s) 944-PR or 944-SS. 02SSM 14 Prior Years' Social Security and Medicare Tax Adjustments $/c Line 6c (Rev 2008 and prior) +/- Not applicable to Forms 944 or 944(SP) for tax periods beginning after December 31, 2008, or for any year's Form(s) 944-PR or 944-SS. 02AIT 14 Special Additions for Federal Income Tax Withheld Amount $/c Line 6d, (Rev 2008 and prior) +/- Not applicable to Forms 944 or 944(SP) for tax periods beginning after December 31, 2008, or for any years Form(s) 944-PR or 944-SS. 02ASM 14 Special Additions To Social Security and Medicare Taxes $/c Line 6e (Rev 2008 and prior) +/- Not applicable to Forms 944 or 944(SP) for tax periods beginning after December 31, 2008, or for any year's Form(s) 944-PR or 944-SS. 02TA 15 Total Adjustments Amount (2008 and prior only) $/c -
Line 6f (Rev 2008 and prior)
+ 0207 15 Total Tax-Taxpayer $/c Line 7 +/- 02EIC 15 Advance Earned Income Credit $/c Line 8 ( TY 2010 and prior) + Not applicable to any years Form(s) 944-PR or 944-SS 02DEP 15 FTD Credit Claimed Amount $/c Line 8 + 02CPM 15 COBRA Premium Assistance Payments $/c Line 9a (2011) Line 11a
(Rev 2009 and 2010)+ 02CEM 7 Number of Recipients Receiving COBRA Numeric Line 9b (2011) Line 11b
(Rev 2009 and subsequent)02MRN 7 March Number of Qualified Employees Paid Exempt Wages (2010 only) Numeric Line 11c 02MXW 14 March Exempt Wages Paid Qualified Employees (2010 only) $/c Line 11d + 02MXT 14 March Social Security Tax on Exempt Wages Paid Qualified Employees- Taxpayer (2010 only) $/c Line 11e + 02STL 15 Sub-Total $/c Line 10 (2011) Line 12
(Rev 2009 and 2010)+ 02B/R 15 Balance Due/Overpayment-Taxpayer $/c -
Line 11 and 12 (2011)
-
Lines 13 and 14 (Rev 2009 and 2010)
+/- 02FD 10 Federal Tax Penalty-Taxpayer $/c On the right margin opposite "Who Must File Form 944" + -
-
Correcting Fields in Section 02:
If ... Then ... Any field is transcribed incorrectly Enter the correct amount from the return A check mark is not present in the box on line 3, Forms 944, 944-PR or 944-SS, 1- Blank any entry in Field 0203.
2- Enter GTSEC01 to check Field 01CCC for CCC B. If present, delete the "B" from the Field.Caution:
When deleting the "B" from Field 01CCC, be careful you do not blank any other CCC from that Field.
A check mark is present in the box on line 3, Forms 944, 944-PR or 944-SS, but there is no "B" present on the return 1–GTSEC01 to check for a "B" in 01CCC.
2- If not present in 01CCC, enter the "B" .Fields 025A, 025B, 025C and/or 025C have entries and the tax period of the return is not 2010, Blank the field as a misplaced entry. The entry in Fields 25B, 025C and/or 025D is a negative amount Treat the entry as a positive amount The return tax year is 2009 or subsequent and Fields 02FIT, 02SSM, 02AIT and/or 02ASM has an amount, Blank the entry. Note:
If the screen display is for tax year 2009, any entry in this Field will not be included in the total showing in Fields 02CA, 02TA, or 02TA>.
Field 02EIC has an amount and the tax year is 2011 or subsequent, Blank the entry Fields 02MXW and/or 02MXT is a negative amount, Treat as a positive entry.
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The following sections provide information concerning Form 944, 944-PR and 944-SS, Section 03.
Field
DesignatorField
LengthTitle of Field Location on Return 03A 14 Tax Liability—1st month -
Line 13, (page 2, 2011 and subsequent
-
Line 15, (Page 2, Rev 2009 and subsequent)
-
Line 13 (Page 2, Rev 2008 and prior)
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 -
-
Invalid Condition: These Fields are invalid if they are not all numeric.
-
Correction Procedures: If transcribed incorrectly, enter the correct amount from the return.
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The following sections provide information concerning Forms 944, 944-PR, 944-SS and 944(SP), Section 04.
Field
DesignatorField
LengthTitle of Field Location on Return 04CON 35 Care of Name Second name line in the Entity Portion 04FAD 35 Foreign Address Entity Portion, (e.g. Street, City, or State line) 04ADD 35 Street Address Entity Portion 04CTY 22 City Entity Portion 04ST 2 State Entity Portion 04ZIP 12 ZIP code Entity Portion 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.
-
Field 04CON. See IRM 3.12.13.27.1.
-
Field 04FAD. See IRM 3.12.13.27.4.
-
Field 04ADD. See IRM 3.12.13.27.5.
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Field 04CTY. See IRM 3.12.13.27.6.
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Field 04ST. See IRM 3.12.13.27.7.
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Field 04ZIP. See IRM 3.12.13.27.8.
-
-
See IRM 3.12.13.59 for the instructions for correcting Section 05 .
-
See IRM 3.12.13.60 for the instructions for correcting Section 06.
-
See IRM 3.12.13.61 for the instructions for correcting Section 07.
-
See IRM 3.12.13.62 for the instructions for correcting Section 08.
-
See IRM 3.12.13.63 for the instructions for correcting Section 09.
-
See IRM 3.12.13.64 for the instructions for correcting Section 10.
-
See IRM 3.12.13.65 for the instructions for correcting Section 11.
-
See IRM 3.12.13.66 for the instructions for correcting Section 12.
-
See IRM 3.12.13.67 for the instructions for correcting Section 13.
-
See IRM 3.12.13.68 for the instructions for correcting Section 14.
-
See IRM 3.12.13.69 for the instructions for correcting Section 15.
-
See IRM 3.12.13.70 for the instructions for correcting Section 16.
-
This section provides procedures for correcting consistency and math errors (Priority IV) for Forms 944, 944-PR, 944-SS, and 944(SP).
-
For an explanation of these errors, see IRM 3.12.13.5.4.
-
Procedures for working EC 001 are the same as EC 001 for Forms 941. See IRM 3.12.13.29.1, for instructions.
-
Procedures for working EC 002 are the same as EC 002 for Forms 941. See IRM 3.12.13.29.2, for procedures.
-
Procedures for working EC 003 are the same as EC 003 for Forms 941. See IRM 3.12.13.29.3, for procedures.
-
Procedures for working EC 004 are the same as EC 004 for Forms 941. See IRM 3.12.13.29.4, for procedures.
-
Procedures for working EC 005 are the same as EC 005 for forms 941. See IRM 3.12.13.29.5, for procedures.
-
Procedures for working EC 006 are the same as EC 006 for Forms 941. See IRM 3.12.13.29.6, for procedures.
-
Procedures for working EC 007 are the same as EC 007 for Forms 941. See IRM 3.12.13.29.7, for instructions.
-
Fields Displayed:
Field Display Field Name Field Length 01CCC Computer Condition Code 10 01SIC Schedule Indicator Code 1 01ARN Refund Indicator 1 S02DP Section 02 Present S03DP Section 03 Present S04DP Section 04 Present 04CON In Care of Name Line 35 04FAD Foreign Address 35 S05DP Section 05 Present 05A> 1st Month Liability Computer Generated 15 S06DP Section 06 Present 06B> 2nd Month Liability Computer Generated 15 S07DP Section 07 Present 07C> 3rd Month Liability Computer Generated 15 S08DP Section 08 Present 08D> 4th Month Liability Computer Generated 15 S09DP Section 09 Present 09E> 5th Month Liability Computer Generated 15 S10DP Section 10 Present 10F> 6th Month Liability Computer Generated 15 S11DP Section 11 Present 11G> 7th Month Liability Computer Generated 15 S12DP Section 12 Present 12H> 8th Month Liability Computer Generated 15 S13DP Section 13 Present 13I> 9th Month Liability Computer Generated 15 S14DP Section 14 Present 14J> 10th Month Liability Computer Generated 15 S15DP Section 15 Present 15K> 11th Month Liability Computer Generated 15 S16DP Section 16 Present 16L> 12th Month Liability Computer Generated 15 -
Invalid Condition: CCC "G" is present and Fields other than 01NC, 01EIN, 01TXP, 01RCD, 01CCC, and 01CRD are present.
-
Correction Procedures:
-
Correct all misplaced entries, coding and transcription errors. Compare displayed Fields with the return. If incorrect, overlay the screen with the correct information.
-
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 ... CCC "G" was input correctly 1– DLSEC to delete all Sections, except Section 01.
2– Delete the invalid entries (e.g. other than 01NC, 01EIN, 01TXP, 01RCD, 01CCC, and 01CRD) that are present in Section 01. GTSEC 01, if necessary.CCC "G" was input incorrectly, 1– Enter all necessary data in Sections 01 through 16.
2– Ensure that Section 01 Fields are correct.
3– Delete the "G" in Field 01CCC.Note:
When deleting CCC "G" and the section required is shown as being present, no further verification of section entries is needed.
-
-
Procedures for correcting EC 011 are the same as EC 011 for Forms 941. See IRM 3.12.13.29.9, for instructions.
-
Procedures for working EC 014 are the same as EC 014 for Forms 941. See IRM 3.12.13.29.10, for instructions.
-
Procedures for correcting EC 015 are the same as EC 015 for Forms 941. See IRM 3.12.13.29.11, for procedures.
-
Procedures for correcting EC 016 are the same as EC 016 for Forms 941. See IRM 3.12.13.29.12, for procedures.
-
Fields Displayed:
Field Display Field Name Field Length 0203 Exempt from SS and Medicare Tax Indicator 1 024A Taxable SS Wages 15 024B Taxable SS Tips 15 024C Taxable Medicare Wages 15 024D Total SS and Medicare Tax 15 024D>. Total SS and Medicare Tax Computer Generated 15 0207 Total Taxes 15 025B Exempt Wages Paid to Qualified Employees 15 025C SS Tax on Exempt Wages Paid 15 025C> SS tax on Exempt Wages Paid Computer Generated 15 025D Total Taxes Before Adjustments 15 025D> Total Taxes before Adjustments Computer Generated 15 -
Invalid Condition: The total amount of Fields 024A and 024B is greater than the Field 024C figure.
-
Correction Procedures:
-
Compare the screen display and the return., Apply the procedures from the correct IF/AND/THEN table below:
Note:
If the return was filed under Internal Revenue Code Section 6020(b), see the specific instructions at the end of Table below:
If ... And ... Then ... Fields 024A, 024B, and 024C are the same, 1) Delete the Field 024B on the ERS screen.
2) When EC 048 generates enter "C" in Clear Code Field.
3) When EC 080 generates bring up the Field 024D> underprint.
4) If Error Code 100 generates, send TPNC 07.The taxpayer calculated an amount(s) to line(s) 4a, 4b, or 4c, column 2, only -
"Back-in" to the correct wage amount. Use .133 for 2011 and .153 for all other years.
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Enter the calculated amount(s) in Fields 024A, 024B, or 024C.
The total of Fields 024A and 024B is greater than the Field 024C entry, The amount in Field(s) 024A, 024B and 024C are NOT THE SAME, Review the return (including the box on line 3) and any attachments for a sufficient explanation, such as: -
Dependents under 18 years of age,
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Social Security and/or Medicare tax exempt,
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Section IRC 6020(b), etc.
A sufficient explanation has been provided, Delete the wages in Fields 024A and 024B. Continue to process the return. There is no explanation shown on the return or an attachment, or the explanation is not satisfactory, There is a difference of less ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the total of Fields 024A and 024B, and 024C, Enter the total amount of Field 024A and 024B to Field 024C. There is no explanation shown on the return or an attachment, or the explanation is not satisfactory, There is a difference of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ between the total of Fields 024A and 024B, and 024C Correspond with the taxpayer using Letter 21C, 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 640 to have the DLN cancelled. After the DLN is cancelled, route the return to:
Internal Revenue Service
500 West 12th Street
Room 110
Vancouver, Washington 98660–2871 -
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 024D by .153 or .133 (2011) and enter the result in Field 024A, and in Field 024C. -
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Suspense/Rejects Procedures:
If ... Then ... You receive a reply from the taxpayer, Initiate the taxpayer's intention. Recalculate the tax lines as needed. You receive no reply, or there is an insufficient reply, 1- Enter the GREATER of Field 0201 or the total of Fields 024A and 024B to Field 025C. Exception:
If the total of Fields 024A and 024B is greater than 0201, then also enter the computed total of Fields 024A and 024B to Field 0201.
2- If Error Code 100 displays and :-
The Total Tax-Computer is greater than the Total Tax-Taxpayer, send TPNC 07 and 27.
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The total Tax-Computer is less than the Total Tax-Taxpayer, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
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Procedures for working EC 028 is the same as EC 028 for Forms 941. See IRM 3.12.13.29.15, for procedures.
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Fields Displayed:
Field Display Field Name Field Length CL Clear Code 1 01TXP Tax Period 6 01CCC Computer Condition Codes 10 0201 Total Compensation 15 0203 Exempt from SS and Medicare Indicator 1 024A Taxable SS Wages 15 024B Taxable SS Tips 15 024C Taxable Medicare Wages/Tips 15 024D Total SS and Medicare Tax 15 024D> Total SS and Medicare Tax Computer Generated 15 025B Qualified Exempt Wages Paid (2010 only) 15 025C Tax on Qualified Wages Paid (2010 only) 15 025C> Tax on Qualified Wages Paid (2010 only) Computer Generated 15 -
Invalid Condition: The Error Condition will generate if Field 0201 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Field 024C (Taxable Medicare wages and tips) is not present.
Exception:
If CCC "4" or "B" is present, it will allow this error code to bypass.
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Correction Procedures:
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Compare the displayed Field entries with the appropriate line on the return. Check for transcription errors. Make sure an old form format is not causing the error.
If ... And ... Then ... There is an entry in Field 0203 or on return line 3, Enter CCC "B" in Field 01CCC Indication the return is an IRC 6020(b), Enter CCC "4" in Field 01CCC. There is no entry in Field 0203 or on return line 3 You can determine the entry on line 1 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
NOTE: Tax on pensions, annuities, third party sick pay, etc. should be reported on Form 945.There is no entry in Field 0203 or on return line 3 Field 0201, e.g. line 1 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, "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, Enter CCC "B " in Field 01CCC. The return shows no entries or tax calculations on lines 4a through 4c (columns 1 and 2) but an entry shows on line 4d, Divide the amount in Field 024D by .153 (.133 for 2011 only) and enter the result in Field 024A and in Field 024C. The return shows tax calculations on line 4a, column 2, or line 4c, column 2, Fields 024A and 024C are blank, Initiate research using CC INOLES and/or BMFOLE to find the Employment Code. See IRM 3.12.13.29.17. Research will also be initiated whenever a preprinted address label is present on the return even when an Employment Code is present on the label. Research indicates the Employment Code is C, F or G Enter CCC "B" in Field 01CCC. No Employment Code is found 1) Enter the Field 0201 amount into Fields 024A and 024C, Column 1.
2) When EC 048 generates enter "C" in Clear Code Field.
3) When EC 080 generates bring up the Field 024D> underprint.
4) When Error Code 100 generates, send TPNC 07.Employment Code T is found, 1- Enter Field 0201 amount into Fields 024A and 024C, column 1
2) When EC 048 generates enter "C" in Clear Code Field.
3) When EC 080 generates bring up the Field 024D> underprint.
4) When Error Code 100 generates, send 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, 1) Enter Field 0201 amount into Fields 024A and 024C, columns 1
2) When EC 048 generates enter "C" in Clear Code Field.
3) When EC 080 generates bring up the Field 024D> underprint.
4) When EC 100 generates enter TPNC 08.
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Fields Displayed:
Field Display Field Name Field Length CL Clear Code 1 01TXP Tax Period 6 0201 Total Compensation 15 0202 Income Tax Withheld 15 024A Taxable SS Wages 15 024B Taxable SS Tips 15 024C Taxable Medicare Wages/Tips 15 024D Total SS and Medicare Tax 15 024D> Total SS and Medicare Tax Computer Generated 15 02CA Current Year Total Adjustments (TY 2009 and subsequent) 15 02FIT Current Year Adjustment to Income Tax Withheld (TY 2008 and prior) 15 02SSM Adjustment to SS and Medicare Taxes (TY 2008 and prior) 15 02AIT Special Adjustments to Income Tax Withheld (TY 2008 and prior) 15 02ASM Special Adjustments to SS and Medicare Taxes (TY 2008 and prior) 15 02TA Total Adjustments (TY 2008 and prior) 15 02TA> Total Adjustments (TY 2008 and prior) Computer Generated 15 0207 Total Tax 15 0207> Total Tax Computer Generated 15 02EIC Advanced Earned Income Tax Credit (TY 2010 and prior) 15 025B Qualified Exempt Wages Paid (2010 only) 15 025C Tax on Qualified Wages Paid (2010 only) 15 025C> Tax on Qualified Wages Paid (2010 only) Computer Generated 15 025D Total Taxes Before Adjustments 15 025D> Total Taxes Before Adjustments Computer Generated 15 -
Invalid Condition: Field 0207 (Total Tax -Taxpayer) is zero or blank, but at least one other displayed Field has a dollar entry.
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Correction Procedures:
If ... Then ... Transcribed incorrectly, Enter the correct entry from the return. Field 0207, Total Tax-Taxpayer, is blank or zero, but at least one of the Fields 0202 through 02TA show a dollar 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 0207, Total Tax-Taxpayer, from lines 2, 4d, 5d, (year 2010, or line 5, year 2009 and prior) and 6 on the return .
2– Enter the computed result in Field 0207.After verifying Total Tax, the total taxes are truly zero, blank, "None" , as a result of adjustments, e.g. to Withholding, Social Security, or Medicare taxes, 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 verifying the Total Tax, the total taxes should appear other than zero, blank, "None" , etc. Enter TPNC 03 to advise the taxpayer of the error.
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Fields Displayed:
Field Display Field Name Field Length CL Clear Code 1 01TXP Tax Period 6 0201 Total Compensation 15 0202 Income Tax Withheld 15 024A Taxable SS Wages 15 024B Taxable SS Tips 15 024C Taxable Medicare Wages/Tips 15 024D Total SS and Medicare Tax 15 024D> Total SS and Medicare Tax Computer Generated 15 02CA Current Year Total Adjustments (TY 2009 and subsequent) 15 02FIT Current Year Adjustment to Income Tax Withheld (TY 2008 and prior) 15 02SSM Adjustment to SS and Medicare Taxes (TY 2008 and prior) 15 02AIT Special Adjustments to Income Tax Withheld (TY 2008 and prior) 15 02ASM Special Adjustments to SS and Medicare Taxes (TY 2008 and prior) 15 02TA Total Adjustments (TY 2008 and prior) 15 02TA> Total Adjustments (TY 2008 and prior) Computer Generated 15 0207 Total Tax 15 0207> Total Tax Computer Generated 15 02EIC Advanced Earned Income Tax Credit (TY 2010 and prior) 15 025B Qualified Exempt Wages Paid (2010 only) 15 025C Tax on Qualified Wages Paid (2010 only) 15 025C> Tax on Qualified Wages Paid (2010 only) Computer Generated 15 025D Total Taxes Before Adjustments 15 025D> Total Taxes Before Adjustments Computer Generated 15 -
Invalid Conditions: The error will generate if the Advance Earned Income Credit (AEIC), Field 02EIC, is greater than the allocated percentage of the Total Compensation, Field 0201. AEIC is no longer a valid entry beginning tax year 2011. The allocated percentages are:
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10% for tax periods 198412 and prior.
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11% for tax periods 198503 through 198612.
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14% for tax periods 198703 through 199012.
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16.7% for tax periods 199103 through 199112.
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17.6% for tax periods 199203 through 199212.
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18.5% for tax periods 199303 through 199312.
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15.78% for tax periods 199403 through 199412.
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20.4% for tax periods 199503 through 201012.
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Correction Procedures:
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Refer to the return to compare the entries with the displayed screen entries. If needed, correct the Fields to agree with the return.
If ... Then ... Field 0201 (line 1) is blank and Field 02EIC ( line 8) contains an entry, 1– Add Field 024A and 024B together, .
2– Enter in Field 0201 the larger of the total computed in step 1, or the amount in Field 024CFields 0201, 024A, and 024B ( lines 2, 4a, and 4b, Column 1) are blank, but Field 024C ( line 4c, column 1) has an entry, Enter the amount of Field 024C ( line 4c, column 1) in Field 0201 (line 1) on the screen. Fields 0201, 024A, and 024C (return lines 2, 4a, and 4c, Column 1) are blank, but line 2 of the return has an entry, Add a zero to the line 2 amount and enter the new amount to Field 0201. It appears that Field 02EIC may be the total of the federal deposits, e.g. (but not limited to) TCs 650, 670, and any 716, Note:
Follow the applicable steps in the order provided below until the error has been resolved.
1– Initiate research to determine the total of the federal deposits applied, e.g. (but not limited to) TCs 650, 670, and any 716, to the applicable tax period.
2– If Field 02EIC is not the same as the deposits, or is the same as Field 0207 (line 7), 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 there is no reply, or an inadequate reply is received from the taxpayer, compute the correct amount of AEIC by multiplying the wage entry in Field 0201 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.
The AEIC amount on the return is found to be correct and is greater than the allocated percentage, 1– Compute the allowable amount for the appropriate tax period.
2– Enter the computed amount in Field 02EIC
3– If Error Code 102 displays, assign TPNC 23.Tax year is 2011 or subsequent, Delete the entry in Field 02EIC.
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Fields Displayed:
Field Display Field Name Field Length CL Clear Code 1 RMIT> Remittance Amount 15 01CCC Computer Condition Code 10 02EIC Advanced Earned Income Credit 15 -
Invalid Condition: Advance Earned Income Credit (AEIC) equals or exceeds Remittance amount.
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Correction Procedures:
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Check for any transposition, transcription, or coding errors. Correct the applicable Fields to agree with the return.
If ... Then ... The AEIC amount is a misplaced entry or if it appears that an obvious error has been made, 1- Initiate research (e.g. such as BMFOL T) to determine the total of the federal deposits applied to the applicable tax period, e.g. TCs 650, 670, and any 716.
2– If the total federal tax deposits equals the amount in Field 02EIC, delete Field 02EIC on the screen display.
3– If Field 02EIC has been deleted, but was used by the taxpayer to compute the balance due or overpayment, Error Code 102 will be subsequently display. Correct Error Code 102 using the established procedures.The displayed Fields are correct as transcribed, or corrected, and Error Code 052 is still present, Allow the AEIC by entering a "C" in the Clear code Field.
Note: The "C" in the Clear code prevents any other corrections to the record to accompany the "C" in the Clear code. If Field 02EIC needs to be corrected, it must be entered and transmitted prior to entering and transmitting the "C" in the Clear code Field.
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Fields Displayed:
Field Display Field Name Field Length CL Clear Code 1 01TXP Tax Period 6 02EIC Advanced Earned Income Credit 15 02DEP FTD Payments Claimed 15 -
Invalid Condition: Error Code 054 will generate if the Advance Earned Income Credit (AEIC) minus the Total Tax-Computer is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the AEIC amount is greater than the total Federal Tax deposits ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more.
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Correction Procedures:
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Compare the displayed entries on the screen display with appropriate lines on the return. Correct any coding or transcription errors. Then, initiate research (BMFOL T) to determine the amount of deposits (650) applied to the applicable tax period.
If ... Then ... The Field 02EIC amount is the same as the computed total of the federal tax deposits, e.g. (but not limited to) TCs 650, 670, and any 716 in the tax period. 1- Delete Field 02EIC.
2- Use GTSEC 02. Enter the same amount which was previously in Field 02EIC to Field 0211 and 02STL on the screen display. Then, continue processing.The return line 10 is blank, and research shows no federal tax deposits, e.g. (but not limited to) TCs 650, 670, and any 716, 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 federal tax deposits, e.g. TCs 650, 670, and any 716., but the entry is greater than $2,500. Correspond for clarification of AEIC entry.
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Suspense/Rejects Procedures:
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.
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Fields Displayed:
Field Display Field Name Field Length CL Clear Code 1 0202 Income Tax Withheld 15 0203 Exempt From SS and Medicare Tax Indicator 1 024A Taxable SS Wages 15 024B Taxable SS Tips 15 024C Taxable Medicare Wages/Tips 15 024D Total SS and Medicare Tax 15 024D> Total SS and Medicare Tax Computer Generated 15 02CA Current Year Total Adjustments (TY 2009 and subsequent) 15 02FIT Current Year Adjustment to Income Tax Withheld (TY 2008 and prior) 15 02SSM Adjustment to SS and Medicare Taxes (TY 2008 and prior) 15 02AIT Special Adjustments to Income Tax Withheld (TY 2008 and prior) 15 02ASM Special Adjustments to SS and Medicare Taxes (TY 2008 and prior) 15 02TA Total Adjustments (TY 2008 and prior) 15 02TA> Total Adjustments (TY 2008 and prior) Computer Generated 15 0207 Total Tax 15 0207> Total Tax Computer Generated 15 02DEP FTD Credits Claimed 15 02CPM COBRA Premium Assistance Credit 15 02STL Sub Total 15 025B Qualified Exempt Wages Paid (2010 only) 15 025C Tax on Qualified Wages Paid (2010 only) 15 025C> Tax on Qualified Wages Paid (2010 only) Computer Generated 15 025D Total Taxes Before Adjustments 15 025D> Total Taxes Before Adjustments Computer Generated 15 -
Invalid Condition: FTD credit is present and Total Tax Computer is zero or negative.
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Correction Procedures:
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Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.
If ... Then ... 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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Fields Displayed:
Field Display Field Name Field Length S02NP Section 02 Not Present S03DP Section 03 Present 03M> Total Tax Liability for Year Computer Generated 15 S05DP Section 05 Present 05A> 1st Month Liability Computer Generated 15 S06DP Section 06 Present 06B> 2nd Month Liability Computer Generated 15 S07DP Section 07 Present 07C> 3rd Month Liability Computer Generated 15 S08DP Section 08 Present 08D> 4th Month Liability Computer Generated 15 S09DP Section 09 Present 09E> 5th Month Liability Computer Generated 15 S10DP Section 10 Present 10F> 6th Month Liability Computer Generated 15 S11DP Section 11 Present 11G> 7th Month Liability Computer Generated 15 S12DP Section 12 Present 12H> 8th Month Liability Computer Generated 15 S13DP Section 13 Present 13I> 9th Month Liability Computer Generated 15 S14DP Section 14 Present 14J> 10th Month Liability Computer Generated 15 S15DP Section 15 Present 15K> 11th Month Liability Computer Generated 15 S16DP Section 16 Present 16L> 12th Month Liability Computer Generated 15 T-TWO> Total Liability Computer Generated 15 -
Invalid Condition: The error condition will generate if Section(s) 03 through 16 of the ROFTL is present, but Section 02 is not present.
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Correction Procedures:
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Refer to the return to determine if Section 02 contains entries.
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 in those Fields on the screen.There are no entries for Section 03 through 16 Use CC DLSEC to delete the Section(s) from the screen. There are entries present on the return for Section 03 through 16, 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 GTSEC 02 to show the section format on the screen.
2- Enter the amount from Field T-TWO> to Fields 0203 and 02EIC, (applicable to the tax period year.)
3– Use TPNC 27 to advise the taxpayer that we adjusted the tax because we did not receive a reply to our request for additional information.
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Fields Displayed:
Field Display Field Name Field Length 02CPM COBRA Premium Payments 15 02CEM Number of Recipients Receiving COBRA 7 -
Invalid Condition: This error code will generate if Field 02CPM or 02CEM contains an entry, and the alternate Field is blank or zero.
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Correction Procedures:
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Compare the screen display against the return and any attachments to correct any transcription errors or omissions.
Note:
Review the return line 10 for an entry. The taxpayer may have entered the Federal Tax Deposit total on an incorrect line.
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Also, determine if Code and Edit initiated correspondence for any missing COBRA line information, e.g. lines 11a or 11b. 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.)
If ... And ... Then ... Field 02CPM contains an entry (i.e. greater than zero), and Field 02CEM is blank Field 02DEP and return line 10 does not contain an entry, Enter the Field 02CPM amount to 02DEP. Blank Field 02CPM. Field 02DEP and return line 10 contains an entry Review the Form 944 left margin 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. left 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 Initiate correspondence CC SSPND with AC 211. Use Letter 21C (Rev April 2010), paragraph J (or, for Form 941-PR, use Letter 21C (SP), Rev June 2010, paragraph J) to secure the missing information.
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Suspense/Rejects Procedures:
If ... Then ... A reply is received or attached to the return, Enter the missing information. The reply is incomplete, or there is no reply, .-
Blank the entry of Field 02CPM or 02CEM whichever appears on the display screen . This may generate Error Code 101.
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If Error Code 101 does not display, continue to #3 below . Error Code 101 displays (whenever greater than tolerance), if the Total Federal Tax Deposit amount, line 10, appear on the return and/or when there's an entry on line 12 Sub Total line, (on Rev 2009 and subsequent which provides a total of lines 10, 11a, and 11e). Send TPNC 33.
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Error Code 102 may display (when greater than tolerance) as a ripple error if Field 0207 (Total Tax-Taxpayer) or Field 02STL ( Subtotal-Taxpayer) was corrected. Send TPNC 07.
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