3.12.14  Income Tax Returns for Estates and Trusts (Forms 1041, 1041-QFT, and 1041-N) (Cont. 1)

3.12.14.9 
Section 01 – Entity Remittance and Miscellaneous Information

3.12.14.9.17  (01-01-2014)
Field 01ESB - ESBT Indicator (1 Position)

  1. Description - Field 01ESB is a numeric field edited in the left margin next to Line 10 as "2 - 1" when the ESBT (S portion only) box is checked in "Box A, Type of Entity" in the upper left on page 1.

  2. Valid characters are "1" and blank. "1" indicates the "ESBT" box is checked.

  3. Invalid Condition - Field 01ESB will generate as a error if the ESBT Indicator is other than "1" or blank.

  4. Correction Procedures:

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

    2. Compare the screen entry with the entry on the return. If the field was coded or transcribed incorrectly, correct the screen display and the return when necessary.

3.12.14.9.18  (01-01-2014)
Field 01PII – Pooled Income Fund Indicator (1 Position)

  1. Description – Field 01PII is a numeric field edited in the left margin next to Line 10 as "3 - 1" when the Pooled Income box is checked (upper left corner of Page 1).

  2. Valid characters are "1" and blank.

    • PII Code "1" is entered to identify when the Pooled Income Fund box is checked on Form 1041 (Box A, Type of Entity).

  3. Invalid Condition – Field 01PII will generate as a field error if the PII Code is other than "1" or blank.

  4. Correction Procedures:

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

    2. Compare the screen entry with the entry on the return. If the field was coded or transcribed incorrectly, correct the screen display and the return when necessary.

3.12.14.9.19  (01-01-2014)
Field 01PIC – Penalty and Interest Code (1 Position)

  1. Description – Field 01PIC is a numeric field edited in the left margin next to Line 10 as "4 - 1" .

    • The Penalty and Interest Code is edited when Form 1041 is received after the Return Due Date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the taxpayer has included penalty and/or interest.

  2. Valid characters are "1" and blank.

  3. Invalid Condition – Field 01PIC will generate as a field error if the Penalty and Interest Code is other than "1" or blank.

  4. Correction Procedures:

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

    2. Compare the screen entry with the entry on the return. If the field was coded or transcribed incorrectly, correct the screen display and the return when necessary.

3.12.14.9.20  (01-01-2014)
Field 01MSC – Missing Schedule Code (4 Positions)

  1. Description – Field 01MSC is edited in the left margin next to Line 10 as "5 -" followed by the appropriate missing schedule code(s). Only two Missing Schedule Codes are valid per return.

    Note:

    Missing Schedule Codes tell the computer to generate correspondence and freeze the credit.

  2. Valid Missing Schedule Codes (MSC) are:

    MSC Tax Form
    30 Form 1116 (Foreign Tax Credit)
    31 Form 3468 (Investment Credit)
    33 Form 4255 (Recapture of Investment Credit)
    35 Form 4797 (Sale of Business Property)
    37 Form 5735, (American Samoa Economic Development Credit)
    38 Form 5884 (Work Opportunity Credit)
    39 Form 6478 (Credit for Alcohol Used as Fuel)
    40 Form 6765 (Credit for Increasing Research Activities)
    42 Form 8820 (Orphan Drug Credit) 199607 and later)
    44 Form 8586 (Low-Income Housing Credit) and Form 8609 (Low Income Housing Credit/Allocation Certification)
    45 Form 8611 (Recapture of Low-Income Housing Credit)
    46 Form 8801 (Credit for Prior Year Minimum Tax-Individuals, Estates and Trusts)
    47 Form 8826, (Disabled Access Credit)
    48 Form 8830 (Enhanced Oil Recover Credit)
    49 Form 8834 (Qualified Electric Vehicle Credit)
    50 Form 8835 (Renewable Electricity, Refined Coal, and Indian Coal Production Credit)
    51 Form 8845 (Indian Employment Credit)
    52 Form 8846 (Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips)
    53 Form 8847, (Credit for Contributions to Selected Community Development Corporations)
    54 Form 8844 (Empowerment Zone and Renewal Community Employment Credit)
    55 Form 8861 (Welfare to Work Credit) (Not valid after tax period 200911)
    56 Form 8860 (Qualified Zone Credit)
    57 Form 8874 (New Markets Credit)
    58 Form 8881 (Small Employer Pension Plan Startup Costs)
    59 Form 8882 (Credit for Employer-Provided Child Care Facilities and Services) (valid Tax Period 200201 and later)
    60 Form 8884 (New York Liberty Zone Business Employee Credit)
    61 Form 8864 (Bio-diesel Fuel Credit) (valid Tax Periods 200401 and later)
    62 Form 8896 (Low Sulfur Diesel Fuel Production Credit)
    63 Form 8900 (Qualified Railroad Track Maintenance Credit)
    64 Form 8904 (Marginal Section 199 Oil and Gas Production Credit)
    65 Form 8906 (Distilled Spirits Credit)
    66 Form 8907 (Non-conventional Source Fuel Credit) (valid 200401 and later)
    67 Form 8908 (Energy Efficient Home Credit)
    68 Form 8910 (Alternative Motor Vehicle Credit) (valid 200508 and later)
    69 Form 8911 Alternative Fuel Vehicle Refueling Property Credit) (valid 200508 and later)
    70 Form 5884-A (Credit for Affected Midwestern Disaster Area Employers)
    71 Form 8909 (Energy Efficient Appliance Credit)
    72 Form 8912 (Credit to Holders of Tax Credit Bonds)
    73 Form 8931 (Agricultural Chemicals Security Credit) (valid 200805 and later)
    74 Form 8932 (Credit for Employer Differential Wage Payments) (valid 200901 and later)
    75 Form 5884-B (New Hire Retention Credit) (only valid for tax year 2011)

    Caution:

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

  3. Invalid Condition - Field 01MSC will generate as a field error when any of the following conditions exist:

    • Field 01MSC is not one of the valid codes listed in (2), above.

    • The same Missing Schedule Code appears more than once.

    • The Missing Schedule Code does not begin in the first position of the field.

  4. Correction Procedures:

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

    2. Correct the return when necessary.

      Note:

      Determine the correct MSC from the information on Form 1041 in accordance with the instructions in the individual fields.

  5. When more than two Missing Schedule Codes apply to one return and there is no indication on the return that Code & Edit has taken the appropriate action, correspond for the missing information using the appropriate correspondence letter.

    1. Ensure that the correspondence indicates all missing forms and/or schedules. This is important when substantiation of credits is necessary.

    2. Notate on Form 1041 that correspondence has been initiated and circle the Missing Schedule Codes on the return.

    3. Use Action Code 21X.

    If... Then...
    Reply received Continue processing based on the information received.
    No reply (or reply does not provide the missing forms) "X" –out all appropriate credit items and enter the appropriate missing schedule code in Field 01MSC and on the return in "5 -" format. GTSEC 01 and enter "3" in Field 01CCC.

3.12.14.9.21  (01-01-2014)
Field 01ISI – Installment Sales Indicator (1 Position)

  1. Description – Field 01ISI is edited in the left margin next to Line 12 as "6 -" followed by the appropriate code when Form 6252 (Installment Sale Income) is attached.

  2. Valid characters are "1" , "2" , "3" and blank.

    ISI Code Description
    1 Indicates a Yes to Question "3" of Form 6252 (Installment Sale Income).
    2 Indicates a No to Question "3" of Form 6252.
    3 Indicates that Form 6252 is attached but there is a multiple, illegible, or no response to Question "3" .

    Caution:

    If multiple Forms 6252 are attached, enter ISI Code 1 ("Yes" ) if at least one Form 6252 has a positive response. If Form 6252 is not attached, Field 01ISI will be blank.

  3. Invalid Condition - Field 01ISI will generate as a field error if the Installment Sales Indicator Code is other than "1" , "2" , "3" , or blank.

  4. Correction Procedures:

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

    2. Correct the return when necessary.

3.12.14.9.22  (01-01-2014)
Field 01HSC – Historic Structure Code (1 Position)

  1. Description – The Historic Structure Code applies to any return for Tax Periods 198212 and subsequent.

  2. Field 01HSC is edited in the left margin next to Line 12 as "7 - 3" when the Form 3468 (Investment Credit) has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on the following:

    • TY 2010 and subsequent: If there are entries under Part III, Line 11; specifically Lines e, f, g, h, i or j.

    • For TY2008 and subsequent - Code 3 if an amount is present in Part III, on Line 10, e, f, g, h, i or j.

    • For tax year 2006 - 2007 - Code "3" if an amount is present on Line 1, e, f, g or h.

    • For tax years 1995 through 2005 - Code "3" if an amount is present on Line 1, b or c.

  3. Valid Historic Structure Codes are "3" and/or blank.

  4. Invalid Condition – Field 01HSC will generate as a field error when the Historic Structure Code is other than "3" or blank.

  5. Correction Procedures:

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

    2. Leave Field 01HSC blank if there are no entries on Lines 1a through 1d, or if question is not on Form 3468 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  6. If a Department of Interior Certification letter or form is attached to the return, do not detach it from Form 1041.

3.12.14.9.23  (01-01-2014)
Field 01QNT – Number of Trusts (Form 1041-QFT) (6 Positions)

  1. Description – Field 01QNT is located in the Entity Section (Part I) of Form 1041-QFT only. Valid characters are numeric only.

    • Form 1041-QFT – Transcribed from Line 4 (Part I).

    Note:

    Any entries in this field for other than 1041-QFTs, are invalid and were transcribed in error.

  2. Invalid Condition – Field 01QNT will generate as a field error if other than numeric.

  3. Correction Procedures –Correct all misplaced entries, coding errors, and transcription errors.

    Exception:

    If Line 4 is blank or zero on Form 1041-QFT, input a "1" in Field 01QNT.

3.12.14.9.24  (01-01-2014)
Field 01EWI - E-file Mandate Waiver Indicator

  1. Description - will be edited on the bottom center margin of the 1041 return, page 1. It will be used whether or not the Form 8948, Preparer Explanation for Not Filing Electronically, has been attached to the 1041 return. Valid characters are the following numeric one digit code:

    • Blank - No E-file waiver Form 8948 attached.

    • 1 - Taxpayers elected to file return on paper.

    • 2 - Waiver from requirements to electronic file applied for and received.

    • 3 - Taxpayers are members of a religious group exempt from electronically filing the return.

    • 4 - Return was rejected by IRS E-File and the preparer was unable to resolve the reject condition

    • 5 - E-File software package does not support forms or schedules attached to the return.

    • 6 - Other circumstances prevented taxpayers from filing the return electronically.

    • If multiple boxes are checked the priority order would be: 6a or 6b, 3, 2, 1, 4, 5, 6c.

3.12.14.10  (01-01-2014)
Section 02 – Address Fields

  1. Section 02 contains address information of the estate or trust.

    Note:

    See Document 7475, State Abbreviations, Major City Codes, and Address Abbreviations.

  2. Ogden Submission Processing Campus (OSPC) will process Foreign/International addresses and U.S. Possessions/Territories.

  3. The determination of a foreign address is based only on the address of the Trust:

    1. A foreign (international) address is any address that is not in one of the 50 states or the District of Columbia.

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

    U.S. Possessions/Territories
    • American Samoa
    • Federated States of Micronesia
    • Guam
    • Marshall Islands
    • Northern Mariana Islands
    • Palau
    • Puerto Rico
    • Virgin Islands

  4. An Army Post Office (APO), Diplomatic Post Office (DPO), or Fleet Post Office (FPO) is not a foreign address. The Postal Service established new address requirements for APO/DPO/FPO addresses. If an address appears in the old APO/DPO/FPO format, such as "APO New York, NY 091XX" , convert to the new State code based on the ZIP Code as follows: "APO AE 091XX" .

    If ZIP Code is… Then convert to…
    340XX AA
    090 AE
    962-966 AP

  5. All returns with a foreign or U.S. Possession/Territory address must be shipped to OSPC.

    1. SSPND 650.

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

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

3.12.14.10.1  (01-01-2014)
Foreign Addresses (OSPC Only)

  1. A foreign address will contain:

    • Street Address or P.O. Box

    • City or town name

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

    • Postal code, if present

    • Foreign country

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

    1. A two character alpha code must be entered in Field 02ST for the possession/territory name.

      U.S. Possession/Territory Abbreviation
      American Samoa AS
      Federated States of Micronesia FM
      Guam GU
      Marshall Islands MH
      Northern Mariana Islands MP
      Palau PW
      Puerto Rico PR
      Virgin Islands (U.S.) VI

    2. A ZIP Code must be present.

3.12.14.10.2  (01-01-2014)
Error Record Format - Section 02

  1. Listed below are the fields contained in Section 02. Data in this section is obtained from Forms 1041, 1041-QFT, and 1041-N:

    Field
    Designator
    Maximum
    Length
    Title Location
    02CON 35 In-Care-of Name Entity Section of Forms 1041, 1041-QFT, and 1041-N.
    02FAD 35 Foreign Address Entity Section of Forms 1041, 1041-QFT, and 1041-N.
    02ADD 35 Address Entity Section of Forms 1041, 1041-QFT, and 1041-N.
    02CTY 22 City Entity Section of Forms 1041, 1041-QFT, and 1041-N.
    02ST 2 State Entity Section of Forms 1041 1041-QFT, and 1041-N.
    02ZIP 12 ZIP Code Entity Section of Forms 1041 1041-QFT, and 1041-N.

3.12.14.10.3  (01-01-2014)
♦Field 02CON – In-Care-of Name (35 Positions)♦

  1. Description – Field 02CON is located in the Entity Section of the return.

  2. Valid Condition – Field 02CON has 35 positions and valid characters are alpha, numeric, ampersand, dash, slash, or percent (%).

    Note:

    The first character of the in-care-of name must be alpha or numeric.

  3. Invalid Condition – Field 02CON is invalid if any of the following conditions are present:

    • The first position is % (percent) and the second position is not blank, or

    • The first position is blank, or

    • The first character of the in-care-of name is not alpha or numeric, or

    • There are two consecutive blanks between significant characters.

  4. Correction Procedures - Correct coding and transcription errors.

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

    2. If not blank, enter a blank followed by the in-care-of name beginning with an alpha or numeric in Field 02CON.

    A blank is in the first position, Enter the in-care-of name beginning with an alpha or numeric in Field 02CON.
    The first character of the in-care-of name is not an alpha or numeric,
    1. Verify the in-care-of name on the return

    2. Enter the in-care-of name beginning with an alpha or numeric in Field 02CON.

    Two consecutive blanks are present between significant characters, Delete any unnecessary blanks in Field 02CON.

3.12.14.10.4  (01-01-2014)
♦Field 02FAD - Foreign Address ♦

  1. Description - Field 02FAD is located in the Entity Section of the return.

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

    • Field 02FAD should not be present on "G" coded short length returns

  2. Valid Condition - Valid characters are alpha, numeric and special characters.

  3. Invalid Condition - Field 02FAD will generate as an error when any of the following conditions are present:

    • The first position is blank.

    • Any character follows two consecutive blanks.

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

      Note:

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

  4. Correction Procedures:

    1. Correct all coding and transcription errors.

      If… Then…
      Field 02FAD is present
      1. GTSEC 02

      2. Ensure Field 02CTY contains a foreign country code and Field 02ST contains a ". (period/space)" . See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

        Exception:

        Use the country code based on the province in Field 02CTY if the foreign address is from Canada and the address contains a province name or abbreviation. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

      .
      A province abbreviation is not present for Australia, Brazil, Canada, Cuba, Italy, Mexico or The Netherlands but a province name is present, Enter the province abbreviation in the appropriate position in Field 02FAD. See Exhibit 3.12.14-32
      A foreign address is not present on the return
      1. SSPND 610

      2. Renumber return with domestic DLN.

    2. If Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party- Business, is attached to the return, compare the name and address information on the Form 8822 or Form 8822-B to the return.

      Note:

      A business may have two addresses. One is the mailing address and the other is the location address or physical location of the business.

      If... And... Then...
      The information is the same, Mailing address information is the same and no location address is listed on Form 8822/Form 8822-B, Line 7 Take no action and continue processing.
      The information is different, Mailing address information is different and/or a location address is listed on Form 8822/Form 8822-B, Line 7
      1. Enter address shown on Form 8822/Form 8822-B in Field (form specific) FAD.

      2. Notate "Form 8822 or Form 8822-B detached" on tax return.

      3. Detach Form 8822/Form 8822-B and route to Entity Control using Form 4227 or follow local procedures.

      4. Notate on Form 4227, "CHANGE OF ADDRESS PER FORM 8822 or FORM 8822-B" .

      Note:

      The lead tax examiner is required to batch all Form 8822 or Form 8822-B daily and hand carry to Entity Control for expedite processing.

3.12.14.10.5  (01-01-2014)
Field 02ADD – Street Address (35 Positions)

  1. Description – Field 02ADD is located in the Entity Section of the return.

    • Field 02ADD should not be present if Field 01CCC contains a "G" (Amended Return).

  2. Valid Condition – Valid characters are alpha, numeric, blank, dash, or slash.

  3. Invalid Condition – Field 02ADD will generate as a field error when any of the following conditions are present:

    • Any character is present other than alpha, numeric, blank, dash, or slash.

    • The first position is blank.

    • Any character follows two consecutive blanks.

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

      Note:

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

  4. Correction Procedures:

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

    If... Then...
    The 35th character is a pound sign (#) Abbreviate to 35 characters or fewer.
    The Street Address is missing or in error and a valid Major City Code is present
    1. Enter the entire City Name (spelled out, not in Major City format) in Field 02CTY.

    2. Enter the State Code in Field 02ST.

      Note:

      For a listing of Major City Codes (listed by state), see Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries

    Unable to perfect DLSEC 02.
    A "&" or a "%" sign is present Change "&" to "and" and/or change "%" to "c/o" .

  5. Multiple Addresses –If more than one Address is present, research INOLE and determine the correct Address as follows:

    If... Then...
    INOLE matches one of the Addresses on the return Enter the first Address found on the return to Field 02ADD.
    INOLE does not match any of the Addresses on the return Delete Section 02 and continue processing the return.

3.12.14.10.6  (01-01-2014)
Field 02CTY – City (22 Positions)

  1. Description – Field 02CTY is located in the Entity Section of the return.

  2. Valid characters are alpha and blank.

  3. Invalid Condition – Field 02CTY will generate as a field error when any of the following conditions are present:

    • The first position is blank.

    • Any character is present other than blank or alpha.

    • Any character follows two consecutive blanks.

    • The Major City Code does not match any of the valid codes in the Major City Code Table.

    • The Foreign Country Code (FCC) does not match any of the valid codes in Document 7475.

  4. Correction Procedures:

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

      Note:

      For a listing of Major City Codes (listed by state) and valid Foreign Country Codes (FCC) see Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries

    If... Then...
    A Major City Code is used Field 02CTY must be present.
    Field 02CTY contains an error Check to see if the Major City Code is correct.
    Field 02CTY is not valid and a Major City Code cannot be determined Input the entire city name.
    A Major City Code is not used and Field 02CTY is present Field 02ST (State) must be present.
    A foreign address is shown on the return Enter the appropriate FCC in Field 02CTY.
    See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries
    Field 02CTY contains an incorrect country code or "XX" Enter appropriate foreign country code in Field 02CTY. If there is no valid FCC, input the entire country name.
    See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries

3.12.14.10.7  (01-01-2014)
Field 02ST – State (2 Positions)

  1. Description - Field 02ST is located in the Entity Section of the return.

  2. Valid characters are alpha and blank.

  3. Invalid Condition - This field is invalid if it is not contained in the State Code Table.

  4. Correction Procedures:

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

    2. For a description of valid State Codes, Document 7475.

    3. If unable to perfect, DLSEC 02.

  5. Foreign Address Processing - International Fiduciary Returns are all Form 1041 with a foreign Address in the Name and Address section of the return. All foreign/international Address returns will be processed at the Ogden Submission Processing Campus (OSPC).

    • The determination of a foreign address is based on the address of the estate or trust located on Page 1 of Form 1041.

    • A foreign address is any address that is not in one of the 50 states or the District of Columbia.

    • All returns with a foreign address must be shipped to Ogden Submission Processing Campus. SSPND 650 and attach Form 4227 with the notation "FORWARD TO OGDEN SUBMISSION PROCESSING CENTER" .

  6. APO/DPO/FPO Addresses –An APO, DPO or FPO address is not a foreign address.

    • The U.S. Postal Service established new requirements for APO/DPO/FPO addresses.

    • If the old address appears (i.e., AP New York, NY 091XX), convert the address to the new state code abbreviations based on the ZIP Code:

      ZIP Code State Code
      34000 AA
      090–098 AE
      962–966 AP

3.12.14.10.8  (01-01-2014)
Field 02ZIP – ZIP Code (9 Positions)

  1. Description –Field 02ZIP is located in the Entity Section of the return.

  2. Valid characters are numeric and blank.

  3. Invalid Condition –Field 02ZIP will generate as a field error when any of the following conditions are present:

    • Any character is other than numeric or blank.

    • An entry is other than five or nine positions.

    • The entry is not within the range of 00401 and 99999.

    • The first five positions are blank and an entry is present in the last four positions.

    • The entry does not match the Major City Code or State Code.

  4. Correction Procedures:

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

      If... Then...
      Field 02ZIP is transcribed incorrectly. Enter the correct ZIP Code from the return. Only the first five digits are required.
      A valid ZIP Code is not available from the return or an attachment. Determine the first three digits of a valid ZIP Code for the Major City from see Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries and enter "01" for the fourth and fifth digits.
      The Major City is not listed in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries or the first three digits cannot be determined. Enter the ZIP Code of the State shown in the address from Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries

    2. If Form 8822 (Change of Address) is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on Form 8822 to the information on Form 1041.

3.12.14.11  (01-01-2014)
Section 04 – Income and Deductions Fields

  1. Section 04 contains the income and deductions fields from Form 1041 (Page 1), Form 1041-QFT, and Form 1041-N.

  2. Corrections should be made on the return and the screen when errors are discovered.

  3. When present, all tax amounts in Section 04 must be entered as dollars-only.

3.12.14.11.1  (01-01-2014)
Error Record Format – Section 04

  1. Listed below are the fields contained in Section 04. Data in this section is obtained from Forms 1041, 1041-QFT, and 1041-N:

    Field
    Designator
    Maximum
    Length
    Title Location
    0401 13 + Interest Income Form 1041, Line 1.
    Form 1041-QFT, Line 1.
    Form 1041-N, Line 1.
    042A 13 + Total Ordinary Dividends Form 1041, Line 2a.
    Form 1041-QFT, Line 2a.
    Form 1041-N, Line 2a.
    042B2 13 + Qualified Dividends Form 1041, Line 2b(2).
    Form 1041-QFT, Line 2b.
    Form 1041-N, Line 2b.
    0403 13 + or – Business Income or Loss Form 1041, Line 3.
    0404 13 + or – Capital Gain or Loss Form 1041, Line 4.
    Form 1041-QFT, Line 3.
    Form 1041-N, Line 3.

    Note:

    Line 4 can not have a negative entry greater than $3,000 on a non-final return.

    0405 13 + or – Rents/Royalties/Partnerships/Estates/Trusts Form 1041, Line 5.
    0406 13 + or – Farm Income or Loss Form 1041, Line 6.
    0407 13 + or – Ordinary Gain/Loss Form 1041, Line 7.
    0408 13 + or – Other Income Form 1041, Line 8.
    Form 1041-QFT, Line 4.
    Form 1041-N, Line 4.
    0409 13 + or – Total Income Form 1041, Line 9.
    Form 1041-QFT, Line 5.
    Form 1041-N, Line 5.
    0410 13 + Interest Deduction Form 1041, Line 10.
    0411 13 + Taxes Form 1041, Line 11.
    Form 1041-QFT, Line 6.
    Form 1041-N, Line 6.
    0412 13 + Fiduciary Fees Form 1041, Line 12.
    Form 1041-QFT, Line 7.
    Form 1041-N, Line 7.
    0413 13 + Charitable Deduction Form 1041, Line 13.
    0414 13 + Attorney/Accountant Fees Form 1041, Line 14.
    Form 1041-QFT, Line 8.
    Form 1041-N, Line 8.
    0415A 13 + Other Deductions Form 1041, Line 15a.
    Form 1041-QFT, Line 9.
    Form 1041-N, Line 9 plus Line 11.
    0415B 13+ Net Operating Loss Deduction Form 1041, Line 15b
    not applicable to 1041-N, and 1041-QFT
    0415C 13 + Allowable Misc. Itemized Deduction (Subject to 2% Floor) Form 1041, Line 15c.
    Form 1041-QFT, Line 10.
    Form 1041-N, Line 10.
    0416 13 + Total Basic Deductions Form 1041, Line 16.
    Form 1041-QFT, Line 11.
    Form 1041-N, Line 12.
    0418 13 + or – Income Distribution Deduction Form 1041, Line 18.

    Caution:

    Negative amounts are only valid on Final returns.

    0419 13 + Estate Tax Deductions Form 1041, Line 19.
    0420 13 + Exemption Amount Form 1041, Line 20.
    0421 13 + or – Total Special Deductions Form 1041, Line 21.
    not applicable to 1041-N, and 1041-QFT
    0422 13 + or – Taxable Income Form 1041, Line 22.
    Form 1041-QFT, Line 12.
    Form 1041-N, Line 13.

    Note:

    Any negative entry in a "positive only" field will cause a math error. See IRM 3.12.14.21.36 (Error Code 842) and IRM 3.12.14.21.37 (Error Code 845).

3.12.14.11.2  (01-01-2014)
Invalid Condition – Section 04

  1. Any field will be invalid if not all numeric.

3.12.14.11.3  (01-01-2014)
Correction Procedures – Section 04

  1. Field 0404 (Capital Gain or Loss) will be in error if the taxpayer claims a loss greater than $3,000.00 on Line 4 of Form 1041 (or Line 3 of Form 1041-QFT and 1041-N).

    Note:

    Any entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Line 4 must be supported by a Form 1041, Schedule D. If not attached, correspond.

    1. Correct this field by reducing the loss to $3,000.00.

    2. If the loss carryover will be changed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and no math error notice will be sent to the taxpayer, prepare Letter 3833C, explain the adjustment, and specify the corrected loss carryover amount.

    Exception:

    If a "Final" Form 1041, accept the taxpayer's figures. GTSEC 01, and enter CCC "F" in Field 01CCC.

  2. Field 0408 (Other Income) -

    • Treat any amount entered from Form 982 as a misplaced/erroneous entry.

    • Treat any amount entered from Form 4972 as a misplaced/erroneous entry.

    .

  3. Field 0415A (Other deductions not subject to the 2% floor) - needs to be supported by taxpayer's statement listing type and amount all allowable deductions that are not deductible elsewhere on Form 1041.

  4. Field 0415B (Net operating loss deductions) - used to claim a NOL (net operating loss). It needs to be supported by a statement, or Form 1045, Schedule A and/or Schedule B.

  5. Field 0415C (Allowable miscellaneous itemized deductions subject to the 2% floor) - includes expenses for the production or collection of income, such as the cost of safe deposit boxes, and investment advisory fees that exceed the 2% floor.

  6. Field 0416 (Total Basic Deductions) – The total of Fields 0410 through 0415C.

  7. Field 0417> (Adjusted Total Income or Loss) – A computer generated field which is determined by calculating Field 0409 minus Field 0416.

  8. Field 0418 (Income Distribution Deduction) - Must be positive only unless it is the final return of the trust or estate. Taxpayers sometimes use brackets to show an amount as a deduction.

    Note:

    Taxpayer intent should be used to determine whether the entry is negative or positive.

  9. Field 0422 (Taxable income) - can be used to claim a NOL, but does not include Lines 13, 18 and 20 as part of this.

3.12.14.12  (01-01-2014)
Section 05 – Tax Computation Data

  1. Section 05 contains tax computation data (Tax, Payments, and Schedule G).

  2. When present, all tax amounts in Section 05 must be entered as dollars-only, except for the fields indicated in the table, which must be entered as dollars and cents ($ and ¢).

3.12.14.12.1  (01-01-2014)
Error Record Format – Section 05

  1. Listed below are the fields contained in Section 05. Data in this section is obtained from Forms 1041, 1041-QFT, 1041-N:

    Field
    Designator
    Maximum
    Length
    Title Location
    05G1A 13 + Schedule G – Gross Tax Form 1041, Page 2, Line 1a, Schedule G.
    05G1B 13 + Schedule G – Tax on Lump – Sum Distributions Form 1041, Page 2, Line B, Schedule G
    05G1C 13 + Schedule G – Alternative Minimum Tax Form 1041, Page 2, Line 1c, Schedule G.
    05G1D 13 + Schedule G – Line 1d (Total Tax) Form 1041, Page 2, Line 1d, Schedule G.
    05G2A 13 + Schedule G – Line 2a (Foreign Tax Credit Form 1041, Page 2, Line 2a, Schedule G.
    05G2B 13 + Schedule G – Line 2b (General Business Credit) Form 1041, Page 2, Line 2b, Schedule G.
    05G2C 13 + Schedule G – Line 2c (Prior Year Minimum Tax Credit) Form 1041, Page 2, Line 2c, Schedule G.
    05G2D 13 + Schedule G – Line 2d (Bond Credits) Form 1041, Page 2, Line 2d, Schedule G.
    05G2N 13 + Other Non-business Credits ERS Input Only
    05G04 13 + Net Investment Income Tax Form 1041, Page 2, Line 4, Schedule G.
    Form 1041-QFT, Line 16
    does not apply to 1041-N.
    05G05 13 + Schedule G – Line 5 (Recapture Taxes) Form 1041, Page 2, Line 5, Schedule G.
    05G06 13 + Schedule G – Line 6 (Household Employment Taxes) Form 1041, Page 2, Line 6, Schedule G.
    05QTX 13 +
    $ and ¢
    QFT Tax Form 1041-QFT, Line 13.
    Form 1041-N, Line 14.
    05QC 13 +
    $ and ¢
    QFT Credits Form 1041-QFT, Line 14.
    Form 1041-N, Line 15.
    0523 13 +
    $ and ¢
    Total Tax Form 1041, Line 23.
    Form 1041-QFT, Line 15.
    Form 1041-N, Line 16.
    0524A 13 +
    $ and ¢
    Estimated Tax Payments Form 1041, Line 24a.
    0524B 13 +
    $ and ¢
    Credit to Beneficiaries Form 1041, Line 24b.
    0524D 13 +
    $ and ¢
    Tax Paid With Extension Form 1041, Line 24d.
    0524E 13 +
    $ and ¢
    Federal Income Tax Withheld Form 1041, Line 24e.
    0524F 13 +
    $ and ¢
    Regulated Investment Company /Real Estate Investment Trust Credit (Form 2439) Form 1041, Line 24f
    05TET 13 +
    $ and ¢
    Total Telephone Excise Tax Refund Combined Form 1041, to the left of Line 25.
    05TRV 13 +
    $ and ¢
    Total Telephone Excise Tax Refund (Verified)  
    0525 13 +
    $ and ¢
    Total Payments Form 1041, Line 25.
    Form 1041-QFT, Line 16.
    Form 1041-N, Line 17.
    0526 13 +
    $ and ¢
    Estimated Tax Penalty Form 1041, Line 26
    05B/D 13 + or –
    $ and ¢
    Tax Due/Overpayment Form 1041, Line 27/28.
    Form 1041-QFT, Line 17/18.
    Form 1041-N, Line 18/19.
    0529A 13 +
    $ and ¢
    Credit Elect Form 1041, Line 29a.
    Form 1041-QFT, Line 19a.
    Form 1041-N, Line 20a.
    0529B 13 +
    $ and ¢
    Refund Form 1041, Line 29b.
    Form 1041-QFT, Line 19b.
    Form 1041-N, Line 20b.
    05MCT 13 + Manually Corrected Tax Form 1041 (dotted portion of Line 23) and Form 1041-QFT and Form 1041-N (dotted portion of Line 16).

    Note:

    Field 05MCT is an ERS Input Only field. For detailed manual computation instructions, IRM 3.12.14.22 .

    05GVT 13 + Total Verified Tax An ERS Input Only field entered on the dotted portion of Line 1d of Schedule G (Page 2).

    Caution:

    Any negative entry in a "positive only" field will cause a math error.

3.12.14.12.2  (01-01-2014)
Invalid Condition – Section 05

  1. Any field in Section 05 will be invalid if not all numeric.

3.12.14.12.3  (01-01-2014)
Field 05G1A – Schedule G Gross Tax

  1. Description: Field 05G1A is transcribed from Line 1a of Schedule G (Form 1041).

    • The taxpayer must enter the Tax from either the Tax Rate Schedule or Schedule D (Line 43, Part V to Line 1a of Schedule G (Form 1041).

3.12.14.12.4  (01-01-2014)
Field 05G1B – Tax on Lump-Sum Distributions (Form 4972)

  1. Description: Field 05G1B is transcribed from Line 1b of Schedule G (Form 1041).

3.12.14.12.5  (01-01-2014)
Field 05G1C – Alternative Minimum Tax (Schedule I)

  1. Description: Field 05G1C is transcribed from Line 1c of Schedule G (Form 1041).

    • The Alternative Minimum Tax (AMT) - Schedule I is an additional tax on tax preference items.

    • The AMT is computed on Schedule I (Form 1041).

3.12.14.12.6  (01-01-2014)
Field 05G1D – Total Tax

  1. Description: Field 05G1D is transcribed from Line 1d of Schedule G (Form 1041).

    • Field 05G1D is the total of Lines 1a, 1b, and 1c of Schedule G.

  2. Correction Procedures:

    1. The underprint for Field 05G1D displays the computer-generated Total Tax and is determined by adding Lines 1b and 1c to the lesser of Field 05TRS> or 1043 (from Line 1 of Schedule G).
      For additional instructions, IRM 3.12.14.21.42 Field 05G1D-Error Code 860.

3.12.14.12.7  (01-01-2014)
Field 05G2A – Foreign Tax Credit (Form 1116)

  1. Description: Field 05G2A is transcribed from Line 2a of Schedule G (Form 1041).

    • This field must always be positive.

  2. Correction Procedures:

    1. Determine the amount of the entry in Field 05G2A:

      If... Then...
      An entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present and no Form 1116 or other supporting statement is attached Enter "30" in Field 01MSC.

    2. Do not delete the amount present in Field 05G2A.

3.12.14.12.8  (01-01-2014)
Field 05G2B – General Business Credits (Form 3800)

  1. Description: Field 05G2B is transcribed from Line 2b of Schedule G (Form 1041).

    • This field must always be positive.

    • This field is supported by the General Business Credits listed on Form 3800.

    • All valid General Business Credits are claimed in Part I or Part II of Form 3800. See IRM 3.12.14.21.46.1.

  2. Correction Procedures:

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

    2. If an amount is present in Field 05G2B ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , it must be supported by Form 3800.

    If... Then...
    Form 3800 is required but is not present, Correspond.
    A required credit form is not attached Enter the appropriate missing schedule code in Field 01MSC. IRM 3.12.14.9.20.

3.12.14.12.9  (01-01-2014)
Field 05G2C – Credit for Prior Year Minimum Tax (Form 8801)

  1. Description: Field 05G2C is transcribed from Line 2c of Schedule G (Form 1041).

    • This field must always be positive.

    • This field is the total from Form 8801 (Prior Year Minimum Tax Credit).

  2. Correction Procedures:

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

    2. If an amount is present in Field 05G2C ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , it must be supported by Form 8801. If Form 8801 is not present, enter "46" in Field 01MSC.

3.12.14.12.10  (01-01-2014)
Field 05G2D – Bond Credit (Form 8912)

  1. Description: Field 05G2D is transcribed from Line 2d of Schedule G (Form 1041).

    • This field must always be positive.

    • This field is the total from Form 8912 (Credit to Holders of Tax Credit Bonds).

  2. Correction Procedures:

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

    2. If an amount is present in Field 05G2D ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , it must be supported by Form 8912. If Form 8912 is not present, enter "72" in Field 01MSC.

3.12.14.12.11  (01-01-2014)
Field 05G04 - Net Investment Income Tax

  1. Description: Field 05G04 is transcribed from Line 4 of Schedule G, Form 1041 and Line 16 of Form 1041-QFT. Form 1041-N is not liable for this tax.

    • This field must always be positive.

    • This field is the total from Form 8960, Line 21.

  2. Correction Procedures:

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

    2. If any amount is present in Field 05G04, it must be supported by Form 8960. If Form 8960 is not present, correspond with the taxpayer.

3.12.14.12.12  (01-01-2014)
Field 05G05 – Recapture Taxes (Form 4255/ Form 8611)

  1. Description: Field 05G05 is transcribed from Line 5 of Schedule G (Form 1041).

    • This field is the total from Form 4255 (Recapture of Investment Credit) and/or Form 8611 (Recapture of Low Income Housing Credit).

  2. Correction Procedures:

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

    2. If the taxpayer has checked the "Form 4255" box and claimed an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Line 5, Form 4255 should be attached.

      If... Then...
      The taxpayer has checked the "Form 4255" box and is claiming an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ but Form 4255 is not attached Enter "33" in Field 01MSC and enter "33" on the return.

      Exception:

      Do not enter MSC "33" if the taxpayer has notated QEVCR (Qualified Electric Vehicle Credit Recapture), IECR (Indian Employment Credit Recapture), or "45A" on Line 5 of Schedule G.

      The taxpayer has checked the "Form 4255" box and is claiming an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 4255 is attached Continue processing.
      The taxpayer has checked the "Form 4255" claiming an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but supporting form is not attached Allow the entry and continue processing the return

      Caution:

      Do not correspond.

    3. If the taxpayer has checked the "Form 8611" box and claimed an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Line 5, Form 8611 should be attached.

    .

    If... Then...
    The taxpayer has checked the "Form 8611" box and is claiming an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but Form 8611 is not attached Enter "45" in Field 01MSC and on the return. ( IRM 3.12.14.9.20.)

    Exception:

    Do not enter MSC "45" if the taxpayer has notated "QEVCR" , "IECR" or "45A" on Line 5 of Schedule G.

    The taxpayer has checked the "Form 8611" box and is claiming an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 8611 is attached Continue processing.
    The taxpayer has checked the "Form 8611" claiming an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but supporting form is not attached
    1. Allow the entry.

    2. Continue processing the return.

    3. Do not correspond.

3.12.14.12.13  (01-01-2014)
Field 05G06 – Household Employment Taxes (Schedule H)

  1. Description: Field 05G06 is transcribed from Line 6 of Schedule G (Form 1041).

    • Household Employment Taxes (Schedule H, Form 1040) can be claimed on Form 1041.

  2. Schedule H must be attached to Form 1041 if an entry is present on Line 6 of Schedule G.

    • If an entry is present on Line 6 of Schedule G but a Schedule H is not present, correspond for the missing Schedule H.

  3. For instructions for processing Schedule H, see IRM 3.12.14.14.1 (Section 07).

  4. To review the valid fields for Schedule H (Form 1040), see Exhibit 3.12.14-4

3.12.14.12.14  (01-01-2014)
Field 05QTX – QFT Tax (Form 1041-QFT and Form 1041-N)

  1. Description – Field 05QTX is transcribed (in dollars and cents) from Line 13 of Form 1041-QFT or Line 14 of Form 1041-N.

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.14.12.15  (01-01-2014)
Field 05QC – QFT Credits (Form 1041-QFT and Form 1041-N)

  1. Description – Field 05QC is transcribed (in dollars and cents) from Line 14 of Form 1041-QFT or Line 15 of Form 1041-N.

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.14.12.16  (01-01-2014)
Field 0523 – Total Tax

  1. Description: Field 0523 is transcribed (in dollars and cents) from Line 23 of Form 1041, Line 15 of Form 1041-QFT, or Line 16 of Form 1041-N.

    • This field is equal to Field 05G1D minus the total of Fields 05G2A through 05G2D plus Fields 05G04, 05G05 and 05G06.

3.12.14.12.17  (01-01-2014)
Field 0524A – Estimated Tax Payment

  1. Description – Field 0524A is transcribed (in dollars and cents) from Line 24a of Form 1041.

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.14.12.18  (01-01-2014)
Field 0524B – Beneficiary Allocation

  1. Description: Field 0524B is transcribed (in dollars and cents) from Line 24b of Form 1041.

    • This field displays the amount of Estimated Tax Overpayment to be allocated among the beneficiaries.

    • The amount allocated must not exceed the amount in Field 0524A.

      Caution:

      This allocation can only be made by trusts, "Final" trusts, and "Final" estates.

3.12.14.12.19  (01-01-2014)
Field 0524D – Tax Paid With Extension

  1. Description: Field 0524D is transcribed (in dollars and cents) from Line 24d of Form 1041.

    • This field is based on amounts paid with Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information and Other Returns.

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.14.12.20  (01-01-2014)
Field 0524E – Federal Income Tax Withheld

  1. Description – Field 0524E is transcribed (in dollars and cents) from Line 24e of Form 1041.

  2. Correction Procedures – The total for Line 24e should include both of the following:

    • Backup withholding on dividends.

    • Withholding on Interest income or other types of income received.

3.12.14.12.21  (01-01-2014)
Field 0524F – Regulated Investment Company/Real Estate Investment Trust Credit (Form 2439)

  1. Description: Field 0524F is transcribed (in dollars and cents) from Line 24f of Form 1041.

    • This field is based on Copy B of Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains.

3.12.14.12.22  (01-01-2014)
Field 0525 – Total Payments

  1. Description – Field 0525 is transcribed (in dollars and cents) from Line 25 of Form 1041, Line 16 of Form 1041-QFT, or Line 17 of Form 1041-N.

3.12.14.12.23  (01-01-2014)
Field 0526 – Estimated Tax Penalty

  1. Description – Field 0526 is transcribed (in dollars and cents) from Line 26 of Form 1041.

  2. Correction Procedures – for Tax Period 198812 and subsequent:

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

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. Do not include any other penalty and interest in Field 0526.

3.12.14.12.24  (01-01-2014)
Field 05B/D – Tax Due/Overpayment

  1. Description: Field 05B/D is transcribed (in dollars and cents) as follows:

    Form Line
    Form 1041 Line 27 or 28
    Form 1041-QFT Line 17 or 18
    Form 1041-N Line 18 or 19
    • This field may be a positive or negative amount.

3.12.14.12.25  (01-01-2014)
Field 0529A – Credit Elect

  1. Description: Field 0529A is transcribed (in dollars and cents) from Line 29a of Form 1041, Line 19a of Form 1041-QFT, or Line 20a of Form 1041-N.

    • This field displays the portion of Overpayment that the taxpayer would like to have applied to the next year's Estimated Taxes.

3.12.14.12.26  (01-01-2014)
Field 0529B – Refund

  1. Description: Field 0529B is transcribed (in dollars and cents) from Line 29b of Form 1041, Line 19b of Form 1041-QFT, or Line 20b of Form 1041-N.

    • This field displays the amount of Overpayment that the taxpayer would like to have refunded to them.

3.12.14.12.27  (01-01-2014)
Field 05MCT – Manually Corrected Tax

  1. This field is for ERS Input Only.

    • Field 05MCT represents the Total Tax calculated on Line 7 of Schedule G (Form 1041) and forwarded to Line 23 of Form 1041.

  2. This field is used when the taxpayer has used a special computation and the computer cannot arrive at the correct Total Tax.

    Note:

    For manual computation instructions, IRM 3.12.14.22

  3. After an amount has been entered in Field 05MCT, the computer will not be able to correctly calculate the Statutory Credits.

    • Ignore any erroneous underprints after Field 05MCT has been entered.

3.12.14.12.28  (01-01-2014)
Field 05GVT – Total Tax Verified

  1. This field is for ERS Input Only.

    • Field 05GVT represents the Total Tax calculated on Line 1d of Schedule G (Form 1041).

  2. This field is used when the taxpayer has used a special computation and the computer cannot arrive at the correct Gross Tax.

3.12.14.13  (01-01-2014)
Section 06 – Schedule I

  1. The fields in Section 06 are transcribed from Schedule I (Alternative Minimum Tax) and Form 4952 (Investment Interest Expense Deduction).

    • Section 06 may or may not be present for all returns.

    • If present, all tax amounts in Section 06 are entered as dollars–only.

3.12.14.13.1  (01-01-2014)
Error Record Format – Section 06 - Schedule I, (Alternative Minimum Tax - Estates and Trusts)

  1. Listed below are the fields contained in Section 06. Data in this section is obtained from Schedule I of Form 1041 and Form 4952:

    Field
    Designator
    Maximum
    Length
    Title Location
    06I24 13 + Schedule I – Line 24 (Alternative Tax Net Operating Loss Deduction (NOLD)) Schedule I, Line 24.
    (Subtracted in Program)
    06I25 13+/- Schedule I – Line 25 Schedule I - Line – 25
    06I26 13 + Schedule I – Line 26 (Income Distribution Deduction) Schedule I, Line 26
    06I53 13 + Schedule I – Line 53 (Alternative Minimum Foreign Tax Credit) Schedule I, Line 53
    06IAV 13 + Schedule I – Alternative Minimum Tax Verified Schedule I, Line 56.
    ERS Input Only
    06I72> 13 + Schedule I - Multiply Line 71 by 15% (.15) Schedule I - Line 72 - Computer
    06I77:> 13 + Schedule I - Subtract Line 76 from Line 57 Schedule I - Line 77 - Computer
    06I78> 13 + Multiply Line 77 by 25% (.25) Schedule I - Line 78 - Computer
    06I79> 13 + Add Lines 63, 72, 75, and 78 Schedule I - Line 79 - Computer
    06D4E 13 + Line 4e of Form 4952 (Net Gain From Disposition of Property) Form 4952, Line 4e
    06D4G 13 + Line 4g of Form 4952 (Included in Investment Income) Form 4952, Line 4g

  2. Valid characters are numeric and blank.

3.12.14.14  (01-01-2014)
Section 07 – Schedule H (Form 1040)

  1. Listed below are the fields contained in Section 07. Data in this section is obtained from Schedule H (Form 1040):

    Field
    Designator
    Maximum
    Length
    Title Location
    0701 13 + Schedule H – Total Social Security Wages Part I, Line 1.
    0703 13 + Schedule H – Total Medicare Wages Part I, Line 3.
    0705 13+ Schedule H - Total cash wages subject to Additional Medicare Tax withholding Part I, Line 5.
    0706 13+ Schedule H - Additional Medicare Tax withholding (multiply line 5 by 0.9% (.009) Part I, Line 6.
    0707 13 + Schedule H – Federal Income Tax Withheld Part I, Line 7.
    0708 13 + Schedule H – SS/Medicare/WH Taxes Part I, Line 8.
    0708V 13 + Schedule H – Total Non-FUTA Tax Verified Part I, Right Margin of Line 8.

    Note:

    ERS Input Only field.

    0797 13+ Schedule H - Advance EIC - 2010 and prior returns Part I, Line 7 ERS Input Only field.
    0798 13+ Schedule H - Net SS/Medicate/WH taxes - 2010 and prior returns Part I, Line 8 ERS Input Only field.
    07FIN 1 Schedule H – FUTA Yes/No Indicator Part II, Lines 10-12.
    07SC1 2 Schedule H – State Code 1 Part II, Lines 13-17(a).
    07SC2 2 Schedule H – State Code 2 Part II, Line 17(a)
    07SC3 2 Schedule H – State Code 3 An attachment to Part II, Schedule B when needed.

    Note:

    Field 07SC3 is an ERS Input Only field.

    07SC4 2 Schedule H – State Code 4 An attachment to Part II, Schedule B when needed.

    Note:

    Field 07SC4 is an ERS Input Only field.

    07SC5 2 Schedule H – State Code 5 An attachment to Part II, Schedule B when needed.

    Note:

    Field 07SC5 is an ERS Input Only field.

    07ASI 1 Schedule H – More Than 5 States Indicator An attachment to Part II, Schedule B when needed

    Note:

    Field 07ASI is an ERS Input Only field.

    07FCP 13 + Schedule H – Unemployment Contributions Paid Part II, Line 14 or 18(i).
    07TFW 13 + Schedule H – Total FUTA Wages Part II, Line 15 or 20.
    07FTX 13 + Schedule H – FUTA Tax Part II, Line 16 or 24.
    07FTV 13 + Schedule H – FUTA Tax Verified Part II, Line 16 or 24.

    Note:

    Field 07FTV is an ERS Input Only field.

    07CC1 2 Schedule H – Credit Reduction State 1 Part II, Lines 13 or 17(a).
    07CW1 13 + Schedule H – Credit Reduction Wages 1 Part II, Left of Line 21.

    Note:

    Field 07CW1 is an ERS Input Only field.

    07CC2 2 Schedule H – Credit Reduction State 2 Part II, Line 17(a).
    07CW2 13 + Schedule H – Credit Reduction Wages 2 Part II, Left of Line 21.

    Note:

    Field 07CW2 an ERS Input Only field.

    07CC3 2 Schedule H – Credit Reduction State 3 Part II, Line 17(a)
    07CW3 13 + Schedule H – Credit Reduction Wages 3 Part II, Left of Line 21.

    Note:

    Field 07CW3 is an ERS Input Only field.

    07CC4 2 Schedule H – Credit Reduction State 4 Part II, Line 17(a).
    07CW4 13 + Schedule H – Credit Reduction Wages 4 Part II, Left of Line 21.

    Note:

    Field 07CW4 is an ERS Input Only field.

    07CC5 2 Schedule H – Credit Reduction State 5 Part II, Line 17(a).
    07CW5 13 + Schedule H – Credit Reduction Wages 5 Part II, Left of Line 21.

    Note:

    Field 07CW5 is an ERS Input Only field.

    07TCR 13 + Schedule H – Total Credit Reduction Amount Part III, Left of Line 25.

    Note:

    Field 07TCR is an ERS Input Only field.

    07TTC 13 + Schedule H – Tentative Credit Part II, Line 19.

    See Exhibit 3.12.14-33 for credit reduction states and rates by tax year.

3.12.14.14.1  (01-01-2014)
Section 07 - Schedule H (form 1040)

  1. Estates and Trusts that employ household employees must report household employment wages on Form 1041, Schedule G, Line 6 (Household Employment Taxes), see table under Field 0701.

  2. Amounts reported on Line 6 of Schedule G must be supported by a Schedule H (Form 1040).

  3. All tax amounts in Section 07 must be entered as dollars-only

  4. Schedule H issues can be difficult to correct. Resolution of fall out for Schedule H will be easier if you follow these steps first::

    • Verify the money amount on Line 26, Schedule H matches the entry on Line 6, Schedule G of the 1041 return.

    • Verify Schedule H against the screen display and correct any misplaced, transcription, coding, and/or omitted entries. If this fails to correct the error, then SSPND 410 to the SME.

    Note:

    Page 2 of the Schedule H contains much of the same information as 940 returns.


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