3.12.15  Return of Partnership Income (Cont. 1)

3.12.15.3 
Section 01 Errors

3.12.15.3.16  (01-01-2015)
Field 01LPC - Limited Partnership Code

  1. Description - Field 01LPC is located on Page 2, Schedule B, Line 1 of Form 1065 and Form 1065-B.

  2. Valid Condition - Must be blank or numeric "1" , "2" , "3" , "4" , "5" or "6" .

  3. Invalid Condition - Entry other than "1" , "2" , "3" , "4" , "5" , "6" or blank.

  4. Correction Procedures:

    1. Correct coding and transcription errors. If Field 01LPC was transcribed incorrectly, enter the correct code from Page 2, Schedule B, Line 1. (See Figure 3.12.15-8)

    2. Determine the correct code as follows:

      If... Then...
      The "Domestic General Partnership" box is checked Enter "1" in Field 01LPC.
      The "Domestic Limited Partnership" box is checked Enter "2" in Field 01LPC.
      The "Domestic Limited Liability Company" box is checked Enter "3" in Field 01LPC.
      The "Domestic Limited Liability Partnership" box is checked Enter "4" in Field 01LPC.
      The "Foreign Partnership" box is checked Enter "5" in Field 01LPC.
      The "Other" box is checked Enter "6" in Field 01LPC.
      Multiple boxes are checked Enter code for the first box checked.
      No box is checked Leave blank.

    Figure 3.12.15-8
    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.12.15.3.17  (01-01-2015)
Field 01DPC - Dual Partner Code

  1. Description - Field 01DPC is based on the partnership response to the question on Page 2, Schedule B, Line 2 of Form 1065 and Form 1065-B.

  2. Valid Condition:

    • Blank or numeric.

    • "1" , "2" , "3" or blank on full length records.

    • Blank on short length records.

  3. Invalid Condition:

    • Other than "1" , "2" , "3" or blank on full length records.

    • Other than blank on short length records.

  4. Correction Procedures:

    If... Then...
    Field 01DPC was transcribed incorrectly, Enter the correct Dual Partner Code from Page 2, Schedule B Line 2.
    The "YES" box is checked, Enter "1" in Field 01DPC.
    The "NO" box is checked, Enter "2" in Field 01DPC.
    Both boxes are checked, Enter "3" in Field 01DPC.
    Neither box is checked, Leave Field 01DPC blank.
    1. If Schedule B is not attached and the tax year is 1991 and subsequent, determine and correct Field 01DPC as follows:

      If... Then...
      Schedule K-1 is attached and Question I (i) indicates type of entity is "Partnership" (Question K on Tax Years 2004-2006, Question B on Tax Years 1993-2003 or Question C on Tax Years 1991-1992), Enter "1" in Field 01DPC.
      Schedule K-1 is not attached, Enter "2" in Field 01DPC.

3.12.15.3.18  (01-01-2015)
Field 01MPC - Multi-Partner Code

  1. Description - Field 01MPC is based on the partnership response to the question on Page 2, Schedule B, Line 3 on Form 1065-B.

  2. Valid Condition:

    • Must be numeric or blank.

    • "1" , "2" , "3" , or blank for full length records.

    • Blank on short length records.

  3. Invalid Condition:

    • Not numeric or blank.

    • Other than "1" , "2" , "3" , or blank on full length records.

    • Other than blank on short length records.

  4. Correction Procedures:

    If... Then...
    Field 01MPC was transcribed incorrectly, Enter the correct Multi-Partner Code from Page 2, Schedule B, Line 3 on Form 1065-B.
    The "YES" box is checked, Enter "1" in Field 01MPC.
    The "NO" box is checked, Enter "2" in Field 01MPC.
    Both boxes are checked, Enter "3" in Field 01MPC.
    Neither box is checked, Leave Field 01MPC blank.
    1. If Schedule B is not attached and the tax year is 1991 and subsequent, examine the return and attachments for Form 8865, Information Return of U.S. Persons With Respect to Certain Foreign Partnerships. Determine and correct Field 01MPC as follows:

    If... Then...
    Form 8865 is attached, Enter "1" in Field 01MPC.
    Form 8865is not attached, Enter "2" in Field 01MPC.

3.12.15.3.19  (01-01-2015)
Field 01FDC - Foreign/Domestic Corporation Code

  1. Description - Field 01FDC is based on the partnership response to the question on page 2, Schedule B, Line 3a of Form 1065.

  2. Valid Condition:

    • Blank or numeric

    • "1" , "2" , "3" or blank on full length records

    • Blank on short length records

  3. Invalid Condition:

    • Other than "1" , "2" , "3" or blank on full length records

    • Other than blank on short length records

  4. Correction Procedures:

    If... Then...
    Field 01FDC was transcribed incorrectly, Enter the correct Foreign Domestic Corporation Code from Page 2, Schedule B. Line 3a.
    The "Yes" box is checked, Enter "1" in Field 01FDC.
    The "No" box is checked, Enter "2" in Field 01FDC.
    Both boxes are checked, Enter "3" in Field 01FDC.
    Neither box is checked, Leave Field 01FDC blank.

3.12.15.3.20  (01-01-2015)
Field 01INE - Individual/Estate Ownership Code

  1. Description - Field 01INE is based on the partnership response to the question on page 2, Schedule B, Line 3b of Form 1065.

  2. Valid Condition:

    • Blank or numeric

    • "1" , "2" , "3" or blank on full length records

    • Blank on short length records

  3. Invalid Condition:

    • Other than "1" , "2" , "3" or blank on full length records

    • Other than blank on short length records

  4. Correction Procedures:

    If... Then...
    Field 01INE was transcribed incorrectly, Enter the correct Individual/Estate Ownership Code from Page 2, Schedule B. Line 3b.
    The "Yes" box is checked, Enter "1" in Field 01INE.
    The "No" box is checked, Enter "2" in Field 01INE.
    Both boxes are checked, Enter "3" in Field 01INE.
    Neither box is checked, Leave Field 01INE blank.

3.12.15.3.21  (01-01-2015)
Field 01PCS - Ownership of Foreign or Domestic Corporation Code

  1. Description - Field 01PCS is based on the partnership response to the question on page 2, Schedule B, Line 4a of Form 1065.

  2. Valid Condition:

    • Blank or numeric

    • "1" , "2" , "3" or blank on full length records

    • Blank on short length records

  3. Invalid Condition:

    • Other than "1" , "2" , "3" or blank on full length records

    • Other than blank on short length records

  4. Correction Procedures:

    If... Then...
    Field 01PCS was transcribed incorrectly, Enter the correct Ownership of Foreign or Domestic Corporation Code from Page 2, Schedule B. Line 4a.
    The "Yes" box is checked, Enter "1" in Field 01PCS.
    The "No" box is checked, Enter "2" in Field 01PCS.
    Both boxes are checked, Enter "3" in Field 01PCS.
    Neither box is checked, Leave Field 01PCS blank.

3.12.15.3.22  (01-01-2015)
Field 01DPT - Ownership of Foreign Partnership or Trust Code

  1. Description - Field 01DPT is based on the partnership response to the question on page 2, Schedule B, Line 4b of Form 1065.

  2. Valid Condition:

    • Blank or numeric

    • "1" , "2" , "3" or blank on full length records

    • Blank on short length records

  3. Invalid Condition:

    • Other than "1" , "2" , "3" or blank on full length records

    • Other than blank on short length records

  4. Correction Procedures:

    If... Then...
    Field 01DPT was transcribed incorrectly, Enter the correct Ownership of Foreign Partnership or Trust Code from Page 2, Schedule B. Line 4b.
    The "Yes" box is checked, Enter "1" in Field 01DPT.
    The "No" box is checked, Enter "2" in Field 01DPT.
    Both boxes are checked, Enter "3" in Field 01DPT.
    Neither box is checked, Leave Field 01DPT blank.

3.12.15.3.23  (01-01-2015)
Field 01PTT - Partnership Level Tax Treatment Election Code

  1. Description - Field 01PTT is based on the partnership response to the question on page 2, Schedule B, question 5 of Form 1065.

  2. Valid Condition:

    • Blank or numeric

    • "1" , "2" , "3" or blank on full length records

    • Blank on short length records

  3. Invalid Condition:

    • Other than "1" , "2" , "3" or blank on full length records

    • Other than blank on short length records

  4. Correction Procedures:

    If... Then...
    Field 01PTT was transcribed incorrectly, Enter the correct Partnership Level Tax Treatment Election Code from Page 2, Schedule B. question 5.
    The "Yes" box is checked,
    1. Enter "1" in Field 01PTT.

    2. Verify "4" is present in Field 01ADC.

    3. If not present, enter "4" in Field 01ADC.

    The "No" box is checked, Enter "2" in Field 01PTT.
    Both boxes are checked, Enter "3" in Field 01PTT.
    Neither box is checked, Leave Field 01PTT blank.

3.12.15.3.24  (01-01-2015)
Field 01DPA - Distribution of Property Code

  1. Description - Field 01DPA, Distribution of Property Code, is based on the partnership response to the question 12a on Schedule B of Form 1065.

  2. Valid Condition - Numeric or blank.

  3. Invalid Condition - Other than "1" , "2" , "3" or blank.

  4. Correction Procedures:

    If... Then...
    Field 01DPA was transcribed incorrectly, Enter the correct Distribution of Property Code from Page 3, Schedule B, Line 12a.
    The "YES" box is checked,
    1. Enter "1" in Field 01DPA.

    2. Verify "4" is present in Field 01ADC.

    3. If not present, enter "4" in Field 01ADC.

    The "NO" box is checked, Enter "2" in Field 01DPA.
    Both boxes are checked, Enter "3" in Field 01DPA.
    Neither box is checked, Leave Field 01DPA blank.
    Prior to 199512, DO NOT code.

3.12.15.3.25  (01-01-2015)
Field 01DRE - Form 8858 Attached

  1. Description - Field 01DRE is based on the partnership entry on page 3, Schedule B, Line 15 on Form 1065.

  2. Valid Condition - Numeric or blank.

  3. Invalid Condition:

    • No numeric

    • Entry other than "0" through "999999 "

  4. Correction Procedures:

    If... Then...
    Field 01DRE was transcribed incorrectly, Enter the correct number of Form 8858 attached from Page 3, Schedule B, Line 15.
    The entry is greater than "1" ,
    1. Verify "2" is present in Field 01ADC.

    2. If not present, enter "2" in Field 01ADC.

3.12.15.3.26  (01-01-2015)
Field 01FPI - Form 8805 Attached

  1. Description - Field 01FPI is based on the partnership entry on page 3, Schedule B, Line 16 on Form 1065.

  2. Valid Condition - Numeric or blank.

  3. Invalid Condition:

    • No numeric

    • Entry other than "0" through "999999"

  4. Correction Procedures:

    If... Then...
    Field 01FPI was transcribed incorrectly, Enter the correct number of Form 8805 attached from Page 3, Schedule B. Line 16.
    The entry is greater than "1" ,
    1. Verify 2 is present in Field 01ADC.

    2. If not present, enter "2" in Field 01ADC.

3.12.15.3.27  (01-01-2015)
Field 01FPC - Foreign Partner Code

  1. Description - Field 01FPC, Foreign Partner Code, is based on the partnership response to the question 16 on Schedule B on Form 1065 (Line 4 on Form 1065-B), "Does this partnership have any foreign partners?"

  2. Valid Condition - Numeric or blank.

  3. Invalid Condition - Entries other than "1" , "2" , "3" , or blank.

  4. Correction Procedures:

    If... Then...
    Field 01FPC was transcribed incorrectly, Enter the correct Foreign Partner Code from Page 2, Schedule B, Line 16 (Line 4 on Form 1065-B).
    The "YES" box is checked,
    1. Enter "1" in Field 01FPC.

    2. Verify "2" is present in Field 01ADC.

    3. If not present, enter "2" in Field 01ADC.

    The "NO" box is checked, Enter "2" in Field 01FPC.
    Both boxes are checked, Enter "3" in Field 01FPC.
    Neither box is checked, Leave Field 01FPC blank.

    Figure 3.12.15-9
    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.12.15.3.28  (01-01-2015)
Field 01IR1 - Form 8865 Attached

  1. Description - Field 01IR1 is located on Page 2, Schedule B, Line 17 on Form 1065 (Line 9 on Form 1065-B).

  2. Valid Condition - Numeric or blank.

  3. Invalid Condition:

    • Not numeric.

    • Entry other than "0" through "999999" .

  4. Correction Procedures:

    If... Then...
    Field 01IR1 was transcribed incorrectly, Enter the correct number from Page 2, Schedule B, Line 17 (Line 9 on Form 1065-B).
    Field 01IR1 has an entry greater than "1" ,
    1. Verify "2" is present in Field 01ADC.

    2. If not present, enter "2" in Field 01ADC.

3.12.15.3.29  (01-01-2015)
Field 01NFC- Form 5471 Attached

  1. Description - Field 01NFC is located on page 3, Schedule B, Line 19 on Form 1065.

  2. Valid Condition - Numeric or blank.

  3. Invalid Condition:

    1. Not numeric.

    2. Entry other than zero (0) to 999.

  4. Correction Procedures-

    If... Then...
    Field 01NFC was transcribed incorrectly, Enter the correct number from page 3, Schedule B, Line 19.

3.12.15.3.30  (01-01-2015)
Field 01ADC - Audit Code

  1. Description - Field 01ADC is a numeric field edited in the left margin next to Line 9 of Form 1065 (Line 12 of Form 1065-B). Identified by "1 -" followed by the appropriate audit code(s). Audit Codes are used to identify specific conditions requested by Examination.

  2. Valid Condition:

    • Numeric (maximum of nine codes).

    • Must be "1" , "2" , "3" , "4" , "5" , "6" , "7" , "8" , "9" or blank.

    • Field 01ADC may be present on short length records.

  3. Invalid Condition:

    • Not numeric or blank.

    • More than nine Audit Codes used at one time.

    • A digit or character appears after the first blank.

  4. Correction Procedures:

    If... Then...
    Field 01ADC was transcribed incorrectly, Enter the correct code from the left margin next to Line 9.
    The Audit Code was coded incorrectly, Complete one of the following:
    1. Delete any invalid digits or characters.

    2. Delete any duplicate digits or characters.

    3. Delete any blanks between valid digits.

    4. Re-edit following the instructions below.

    Audit Code Enter when any of the following conditions exist
    1
    • Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR), is attached.

    • Form 8275 or Form 8275-R, Disclosure Statement, is attached or statement referring specifically to IRC §6662 (Disclosure) or IRC 707 (Disguised Sale).

    • Form 8886, Reportable Transaction Disclosure Statement, is attached.

    • Section 761(a) election that is "Selected" by Examination.

    • Form 1065 contains the notation "Disregarded Entity" in the header or entity portion of the return (on Page 1, Form 1065).

    2
    • Form 1065, page 2, Schedule B, Box 1(e), Foreign Partnership is checked.

    • Form 1065, page 3, Schedule B, Line 11 (Foreign Trust), is answered "YES"

    • Form 1065, page 3, Schedule B, Line 15 (Field 01DRE) has an entry≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Form 1065, page 3, Schedule B, Line 16 (Field 01FPI) has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or Field 01FPC is answered "YES" .

    • Form 1065, page 3, Schedule B, Line 17 (Field 01IR1) has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    • Form 1065, page 4, Schedule K, Line 16(l) (Total Foreign Taxes) has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    • Form 1065-B, page 2, Schedule B, Box 1(e), Foreign Partnership, is checked.

    • Form 1065-B, page 2, Schedule B, Line 3, is answered "YES" .

    • Form 1065-B, page 2, Schedule B, Line 4 (Field 01FPC) is answered "YES" .

    • Form 1065-B, page 2, Schedule B, Line 8 is answered "YES"

    • Form 1065-B, page 2, Schedule B, Line 9 (Field 01IR1) is greater than 0 (zero).

    • Form 5471, Information Return of U.S. Persons with Respect to Certain Foreign Corporations, is attached.

    • Form 5472, Information Return of a 25% Foreign Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, is attached.

    • Form 5713, International Boycott Report, is attached and both questions in 7(f) are answered "YES" .

    • Form 8621, Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund, is attached and part IV, —10a - 11f, has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Form 8804, Annual Return for Partnership Withholding Tax (Section 1446), is attached.

    • Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, is attached.

    • Form 8813, Partnership Withholding Tax Payment Voucher (Section 1446), is attached.

    • Form 8832, Entity Classification Election, is attached and either box 6(d), (e) or (f) is checked.

    • Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), is attached.

    • Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities, is attached.

    • Form 8865, Information Return of U.S. Persons With Respect to Certain Foreign Partnerships, is attached.

    3 Form 1065, page 4, Schedule K, Lines 19a or 19b ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    4
    • Form 1065, page 4, Schedule K, Line 9c ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 1065, Page 4, Schedule K, Line 10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    • Form 1065, Schedule B, Question 2 (Dual Partner Code) is present and the YES box is checked.

    5
    • Form 8283, Noncash Charitable Contributions, is attached and Page 2, Part I, Question 4, Art (contribution of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ), Box (a) (Rev 2013) is checked. (For prior year form See Page 2, Part II, Question 2, Box "1" ) or

    • Form 8283, Noncash Charitable Contributions, is attached and Page 2, Part I, Question 5, Column (c) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . (For prior year form See Page 2, Part II, Question 3, Column (c)).

    • Form 8594, Asset Acquisition Statement, is attached ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Form 8883, Asset Allocation Statement Under Section 338, is attached and the amount in Part IV, Box 5a, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    6 Form 3115, Application for Change in Accounting Method, is attached.
    7
    • Form 1065, page 3, Question 12a (Field 01DPA) is answered YES.

    • Form 1065, page 4, Line 16l, Total Foreign Taxes, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Form 5713, International Boycott Report, is attached and either one or both questions in 7(f) is not answered "YES" .

    • Form 8621, Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund, is attached and part IV, 10a - 11f, as an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    8 Schedule M-3, Net Income (Loss) Reconciliation for Certain Partnerships, is attached.

    Caution:

    All returns with a Schedule M-3 attached must be sent to Ogden for processing.

    9 Schedule M-2, Line 5c (Property Distribution), ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.15.3.31  (01-01-2015)
Field 01SIC - Special Income Code

  1. Description - Field 01SIC is edited in the left margin next to Line 9 of Form 1065 (Line 12 of Form 1065-B) as "2 - 1" if any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. Valid Condition - Valid characters are "1" and blank.

  3. Invalid Condition - Field 01SIC will generate as an error if the Special Income Code is other than "1" or blank.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. If any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the Special Income Code must be "1" .

3.12.15.3.32  (01-01-2015)
Field 01CRD - Correspondence Received Date

  1. Description - Field 01CRD is a numeric field located on the partnership reply to correspondence.

  2. Valid Condition - Field 01CRD must be numeric and in MMDDYYYY format.

  3. Invalid Condition - Field 01CRD is invalid if either of the following conditions are present:

    • Not numeric.

    • Not in MMDDYYYY format.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Determine the CRD from the date the reply was received at the campus. If the reply was not date stamped, use the U.S. Postal Service postmark date on the envelope attached to the reply.

      Note:

      For certified mail only - If a postmark is not present, look for a "USPS.com Track & Confirm" record that has been attached to the return (should be before the envelope). Use the Acceptance date on the record to determine timeliness, follow normal editing procedures. If the "USPS.com Track & Confirm" record is not attached, no action is required.

    3. If more than one CRD is present, use the CRD that made the return complete and processable.

    4. Do not enter the CRD when any of the following conditions are present:

      • The correspondence was received prior to the due date of the return

      • The correspondence was required because of an IRS processing error, for example, a request for a return or schedule that we lost during processing

      • The correspondence was not necessary

      • The correspondence was issued in error

    5. If the reply was missing, incomplete or the notice was undeliverable, enter CCC "3" in Field 01CCC.

      Note:

      If there is an indication that Entity Control has assigned an EIN to the return, enter the entity assignment date found in the lower left-hand corner of the return, in Field 01CRD if it is later than the actual Correspondence Received Date.

3.12.15.3.33  (01-01-2015)
Field 01ISI - Installment Sales Indicator

  1. Description - Field 01ISI is edited in the left margin next to Line 9 of Form 1065 (Line 12 of Form 1065-B) as "3 -" followed by the appropriate code when Form 6252, Computation of Installment Sales Income, is attached.

  2. Valid Condition - Numerics "1" , "2" , "3" or blank.

    Exception:

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

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

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Examine the return and attachments to determine the correct code.

    3. Delete the incorrect entry and enter the correct code on the screen and in the left margin next to Line 9 as "3 -" followed by the correct code.

    4. If a code cannot be determined, leave Field 01ISI 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" .

3.12.15.3.34  (01-01-2015)
Field 01NRL - Nonrecourse Loan Code

  1. Description - Field 01NRL is edited in the left margin next to Line 9 of Form 1065 (Line 12 of Form 1065-B) as "4 -1" when there is an entry on Schedule L, Line 18, Columns (b) or (d) and/or Schedule K-1, Question M (Schedule L, Line 18, Columns (b) or (d) on Form 1065-B).

  2. Valid Condition - Valid entries are "1" or blank.

    • Code "1" if there is an amount other than zero on Schedule L, Line 18, Columns (b) or (d) or when there is an attachment that indicates a Nonrecourse Loan.

  3. Invalid Condition - Field 01NRL will generate as an error if the Nonrecourse Loan Code is other than a "1" or blank.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Examine the return and attachments to determine the correct code.

    3. If a code is not present, delete the entry.

3.12.15.3.35  (01-01-2015)
Field 01MSC - Missing Schedule Code

  1. Form 1065 will be charged penalties for not providing a complete return. Code and Edit (C&E) will be responsible for initiating correspondence when needed, requesting the missing information, and ERS will be responsible for coding Field 01MSC appropriately if the missing information is not received.

  2. Enter Field 01MSC whenever the taxpayer does not respond to our request for missing information. See the chart below for the correct code:

    MSC Missing Schedule(s)
    33 Schedule K-1
    34 Schedule L (Balance Sheet)
    36 Schedule K-1 and Schedule L
    45 Schedule K
    46 Schedule K and Schedule K-1
    47 Schedule K and Schedule L
    49 Schedule K, Schedule K-1 and Schedule L
  3. Invalid Condition - Field 01MSC will generate as an error when any of the following conditions exist:

    • Field 01MSC is invalid if it is not numeric and not one of the Missing Schedule Codes shown above.

    • The same Missing Schedule Code appears more than once.

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

    Note:

    There is always a possibility that a Missing Schedule Code is edited by C & E. However, employees working the suspense files of the Error Resolution System (ERS) must enter the appropriate code based on the response received from the taxpayer.

  4. Correction Procedures:

    1. Correct all coding and transcription errors.

  5. Suspense Procedures:

    If... Then...
    Taxpayer responds with missing information, Enter Correspondence Received Date in Field 01CRD and continue processing.
    Taxpayer does not respond, Enter appropriate Missing Schedule Code in Field 01MSC as shown in (2) above.
    Taxpayer does not provide missing TINs on Schedule K-1, Enter Missing Schedule Code "33" in Field 01MSC and continue processing.
    Taxpayer provides missing K-1s and/or missing TINs, Write the DLN of the return on the first Schedule K-1, in the upper left hand corner, then detach and send for processing. Enter Correspondence Received Date in Field 01CRD.

    Caution:

    Enter missing TINs on each Schedule K-1 before detaching for processing.

3.12.15.3.36  (01-01-2015)
Field 01HSC - Historic Structure Code

  1. Description - Field 01HSC is edited in the left margin next to Line 9 of Form 1065 (Line 12 of Form 1065-B) as "6 - 3" when there is an entry on Form 3468 (Investment Credit) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  2. Valid Condition - Valid Historic Structure Codes are "3" and blank.

  3. Invalid Condition - Field 01HSC will generate as an error when the Historic Structure Code is other than "3" or blank.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Determine the correct code from the return and attachments.

      If... And... Then...
      The tax year is 2010 or subsequent, There is an amount on Form 3468, Part III, Line 11e, f, g, h, i, or j, Enter "3" in Field 01HSC.
      The tax year is 2008 or 2009, There is an amount on Form 3468, Part III, Line 10e, f, g, h, i, or j, Enter "3" in Field 01HSC.
      The tax year is 2006 or 2007, There is an amount present on Form 3468, Line 1e, f, g, or h, Enter "3" in Field 01HSC.
      The tax year is 1996 to 2005, There is an amount present on Form 3468, Part I, Line 1b or 1c, Enter "3" in Field 01HSC.
      The tax year is 2008 and prior, Form 3468 is not attached, Leave Field 01HSC blank.

3.12.15.3.37  (01-01-2015)
Field 01SWC - Salary and Wage Code

  1. Description - Field 01SWC is edited in the right margin next to Line 9 of Form 1065 (Line 12, Form 1065-B).

  2. Valid Condition - Valid entries are "1" and blank.

  3. Invalid Condition - Field 01SWC will generate as an error when the Salary and Wage Code is other than a "1" or blank.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Field 01SWC must contain a "1" if any of the following conditions exist:

      • An entry is present on Page 1, Line 9, Form 1065 (Line 12 on Form 1065-B)

      • An entry is present on Form 1125-A, Line 3

      • An entry is present on Form 8825, Line 13, Columns A-H

      • An entry is present on Form 4835, Farm Rental Income and Expenses, Line 20

      • An entry is present on Schedule F, Line 22 (Rev 2011), or on Schedule F, Line 24 (Rev 2010 and prior)

      • An attachment shows an amount to support any of the above entries

    3. In all other cases, Field 01SWC is blank.

3.12.15.3.38  (01-01-2015)
Field 01EP - EPMF Code

  1. Description - Field 01EP is edited to the right of Line 19 of Form 1065 (Line 22, Form 1065-B).

  2. Valid Condition - Valid entries are "1" and blank.

  3. Invalid Condition - Field 01EP will generate as an error when the EPMF Code is other than "1" or blank.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Field 01EP must contain a "1" if any of the following conditions exist:

      • An entry on Line 18, Form 1065 (Line 21 on Form 1065-B).

      • An entry on Line 23, Schedule F (Form 1040) Farm Income and Expenses.

      • An entry on Line 19, Schedule C (Form 1040), Profit or Loss from Business.

      • An attachment shows an amount to support any of the above entries.

    3. If Field 01EP is blank, delete the entry on the screen.

3.12.15.3.39  (01-01-2015)
Field 01PSN - Preparer Social Security Number
Field 01PEN - Preparer Employer Identification Number

  1. Description - Field is transcribed from the right of the Paid Preparer section of Form 1065 and Form 1065-B (below the Taxpayer Signature section). Data may or may not be present in Fields 01PSN and 01PEN.

  2. Valid Condition - Entries are blank, all numeric or a "P" for the first character followed by eight numeric characters, such as the Preparer Tax Identification Number (PTIN).

    Note:

    A Preparer Tax Identification Number (PTIN) is a valid entry in Field 01PSN. The format for a PTIN is a nine-digit number beginning with the alpha "P" (i.e., PXXXXXXXX).

  3. Invalid Condition - Fields 01PSN and 01PEN are invalid if any of the following conditions are present:

    1. Field 01PSN is other than nine numeric digits or a "P" followed by eight digits.

    2. Field 01PEN is other than nine numeric digits.

    3. Fields contain all zeroes.

    4. Fields contain all nines.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. If Fields 01PSN or 01PEN are invalid, determine as follows:

      If... Then...
      Only a valid PTIN is present, Enter the PTIN in Field 01PSN and on Form 1065 or Form 1065-B.
      Only a valid EIN is located, Enter the EIN in Field 01PEN and on Form 1065 or 1065-B.
      Only a valid SSN is located, Enter the SSN in Field 01PSN and on Form 1065 or 1065-B.
      A valid PTIN is present and an EIN is also present, Enter the PTIN in Field 01PSN and on Form 1065 or 1065-B.
      A valid PTIN is present and a SSN is also present, Enter the PTIN in Field 01PSN and on Form 1065 or 1065-B.
      A valid PTIN is not present but both an EIN and SSN are present, Enter the SSN in Field 01PSN and on Form 1065 or 1065-B.
      A valid TIN (PTIN, EIN or SSN) cannot be located, Delete Fields 01PSN and 01PEN.

3.12.15.3.40  (01-01-2015)
Field 01CBI - Paid Preparer Checkbox Indicator

  1. Description - The paid preparer check box indicator is transcribed from the bottom of Page 1, Form 1065 and Form 1065-B, to the right of the signature date. The checkbox is used to indicate whether the partnership has elected to allow the paid preparer to answer questions about the partnership return as it is processed. Data may or may not be present in Field 01CBI.

  2. Valid Condition - Valid entries are "1" and blank.

  3. Invalid Condition - Field 01CBI will generate as an error when the Paid Preparer Checkbox Indicator is other than "1" or blank.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Enter a "1" in Field 01CBI on the screen if the "Yes" box is checked.

    3. Delete Field 01CBI if "No" box is checked, both boxes are checked or there is no entry.

    4. If invalid, delete the entry on the screen.

3.12.15.3.41  (01-01-2015)
Field 01PTN - Paid Preparer Telephone Number

  1. Description - The paid preparer telephone number is transcribed from the bottom of Page 1, Form 1065 and Form 1065-B, below the paid preparer EIN. Data may or may not be present in Field 01PTN.

  2. Valid Condition - Field 01PTN must be alpha or numeric or a combination of alpha and numeric characters, not to exceed 10 characters or blank.

  3. Invalid Condition - Field 01PTN will generate as an error when the Paid Preparer Telephone Number is other than 10 alpha/numerics.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. If a telephone number is invalid, delete the entry on the screen.

3.12.15.4  (01-01-2015)
Section 02 Errors

  1. This section provides instructions for correcting Section 02 error conditions.

3.12.15.4.1  (01-01-2015)
General Information

  1. Section 02 contains monetary amounts.

  2. The entries are of variable lengths.

  3. All entries are dollars only.

  4. If any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , the Special Income Code must be "1" .

3.12.15.4.2  (01-01-2015)
Error Record Format

  1. Data in Section 02 is obtained from Form 1065 and Form 1065-B. See Exhibit 3.12.15-2, Form 1065, U.S. Return of Partnership Income and Exhibit 3.12.15-3, Form 1065-B, U.S. Return of Income for Electing Large Partnerships.

  2. The Form 1065 field designators, the title and the location on the return where the data is obtained is shown below:

    Field Maximum Length Title   Location on Form 1065
    0201A 15 Gross Receipts or Sales (±) Form 1065, page 1, Line 1a
    0201B 15 Returns and Allowances (±) Form 1065, page 1, Line 1b
    0201C>> 15 Cost of Goods Sold - Computer (±) Form 1065, page 1, Line 1c (Computer Generated)
    0202 15 Cost of Goods Sold (±) Form 1065, page 1, Line 2
    0204 15 Ordinary Income (Loss) from Other Partnerships and Estates and Trusts (±) Form 1065, page 1, Line 4
    0205 15 Net Farm Profit (Loss) from Schedule F (±) Form 1065, page 1, Line 5
    0206 15 Net Gain (Loss) from Form 4797 (±) Form 1065, page 1, Line 6
    0207 15 Other Income (±) Form 1065, page 1, Line 7
    0208 15 Total Income (±) Form 1065, page 1, Line 8
    0208>> 15 Total Income -Computer (±) Form 1065, page 1, Line 8
    (Computer Generated)
    02TAS 15 Total Assets (±) Form 1065, page 1, Box "F"
    02K02 15 Net Rental Real Estate Income (Loss) (±) Form 1065, Schedule K, Line 2
    02K3A 15 Gross Income (Other Rental Activities) (±) Form 1065, Schedule K, Line 3a
    02K3C 15 Balance Net Income (Loss) (Other Rental Activities) (±) Form 1065, Schedule K, Line 3c
    02K05 15 Interest Income (±) Form 1065, Schedule K, Line 5
    02K6A 15 Ordinary Dividend Income (±) Form 1065, Schedule K, Line 6a
    02K07 15 Royalty Income (±) Form 1065, Schedule K, Line 7
    02K9A 15 Net Long Term Capital Gain (Loss) (±) Form 1065, Schedule K, Line 9a
    02K10 15 Net Gain (±) Form 1065, Schedule K, Line 10
    02K11 15 Other Income Amount (±) Form 1065, Schedule K, Line 11
    02KA1 15 Partnerships to which Section 42(j)(5) applies (+) Form 1065, Schedule K, Line 15a
    02KA4 15 Other than on Line 12a(1) (+) Form 1065, Schedule K, Line 15b
    02KB1 15 Qualified Rehab (+) Form 1065, Schedule K, Line 15c
    02FTP 15 Foreign Gross Passive Income (±) Form 1065, Schedule K, Line 16d
    02FTG 15 Foreign Gross Income - Other (±) Form 1065, Schedule K, Line 16f
    02DIN 15 Interest Expense at Partners Level (±) Form 1065, Schedule K, Line 16g
    02DED 15 Foreign Deductions at Partners Level - Other (±) Form 1065, Schedule K, Line 16h
    02DAP 15 Deductions on Foreign Source Income at Partnership Level - Passive (±) Form 1065, Schedule K, Line 16i
    02DAG 15 Deductions on Foreign Source Income at Partnership Level - Other (±) Form 1065, Schedule K, Line 16k
    02FTC 15 Total Foreign Taxes (±) Form 1065, Schedule K, Line 16l
    02FTR 15 Reduction in Foreign Taxes (±) Form 1065, Schedule K, Line 16m
    02MCV 15 Merchant Card Vendor (±) Form 1065, (Rev 2011 only), Line 1a

    Note:

    Field applicable only to Tax Year 2011

  3. The Form 1065-B field designators, the title and the location on the return where the data is obtained is shown below: (See Exhibit 3.12.15-3, Form 1065-B, U.S. Return of Income for Electing Large Partnership)

    Field Field Length Title   Location on Form 1065-B
    0201A 15 Gross Receipts or Sales (±) Form 1065-B, page 1, Line 1a
    0201B 15 Returns and Allowances (±) Form 1065-B, page 1, Line 1b
    0201C>> 15 Balance -Computer (±) Form 1065-B, page 1, Line 1c
    (Computer Generated)
    0202 15 Cost of Goods Sold (±) Form 1065-B, page 1, Line 2
    0204 15 Net Income/Loss from Rental Real Estate (±) Form 1065-B, page 1, Line 4
    0205 15 Net Income/Loss from Other Rental Activities (±) Form 1065-B, page 1, Line 5
    0206 15 Ordinary Income (Loss) from Other Partnerships and Estates and trusts (±) Form 1065-B, page 1, Line 6
    0207 15 Net Farm Profit (Loss) from Schedule F (±) Form 1065-B, page 1, Line 7
    0208 15 Excess Net Short-Term Capital Gain (±) Form 1065-B, page 1, Line 8
    0209 15 Net Gain (Loss) from Form 4797 (±) Form 1065-B, page 1, Line 9
    0210 15 Other Income (Loss) (±) Form 1065-B, page 1, Line 10
    0211 15 Total Income (Loss) (±) Form 1065-B, page 1, Line 11
    0211>> 15 Total Income (Loss) - Computer   Form 1065-B, page 1, Line 11
    (Computer Generated)
    02TAS 15 Total Assets (±) Form 1065-B, page 1, Box "F"
    02KB1 15 Taxable Income from Trade or Business (±) Form 1065-B, Schedule K, Line 1b(1)
    02KB2 15 Taxable Income (Loss) from Rental Real Estate (±) Form 1065-B, Schedule K, Line 1b(2)
    02KB3 15 Taxable Income (Loss) from Other Rental Activities (±) Form 1065-B, Schedule K, Line 1b(3)
    02K1D 15 Taxable Income (Loss) from Passive Loss Limitation (±) Form 1065-B, Schedule K, Line 1d
    02K02 15 Taxable Income (Loss) from Other activities (±) Form 1065-B, Schedule K, Line 2
    02K03 15 Net Capital Gain (Loss) from Passive Loss Limitation Activities (±) Form 1065-B, Schedule K, Line 4a
    02K04 15 Net Capital Gain (Loss) from Other Activities (±) Form 1065-B, Schedule K, Line 4b
    02K05 15 Net Passive Alternative Minimum Tax Adjustment (±) Form 1065-B, Schedule K, Line 5
    02K06 15 Net Other Alternative Minimum Tax Adjustment (±) Form 1065-B, Schedule K, Line 6
    02K07 15 Guaranteed Payments (±) Form 1065-B, Schedule K, Line 7
    02K08 15 Income from Discharge of Indebtedness (±) Form 1065-B, Schedule K, Line 8
    02K09 15 Tax-Exempt Interest Income (+) Form 1065-B, Schedule K, Line 9
    02K10 15 General Credits (+) Form 1065-B, Schedule K, Line 10
    02K11 15 Low Income Housing Credit (LIHC) After 1989 (+) Form 1065-B, Schedule K, Line 11
    02K12 15 Rehabilitation Credit from Rental Real Estate (+) Form 1065-B, Schedule K, Line 12
    02FTP 15 Foreign Gross Passive Income (±) Form 1065-B, Schedule K, Line 14d(1)
    02FTG 15 Foreign Gross Income - Other (±) Form 1065-B, Schedule K, Line 14d(3)
    02DIN 15 Foreign Deductions - Interest Expense (±) Form 1065-B, Schedule K, Line 14e(1)
    02DED 15 Foreign Deductions at Partner Level -Other (±) Form 1065-B, Schedule K, Line 14e(2)
    02DAP 15 Foreign Deduction on Passive Income (±) Form 1065-B, Schedule K, Line 14f(1)
    02DAG 15 Foreign Deduction - Other (±) Form 1065-B, Schedule K, Line 14f(3)
    02FTC 15 Total Foreign Taxes (±) Form 1065-B, Schedule K, Line 14g
    02FTR 15 Reduction in Foreign Tax Amount (±) Form 1065-B, Schedule K, Line 14h
  4. Invalid Condition - Any field in Section 02 will be invalid if not all numeric.

  5. Correction procedures - Check for coding and transcription errors or misplaced entries.

3.12.15.5  (01-01-2015)
Section 03 Errors

  1. This section identifies Section 03 field errors.

3.12.15.5.1  (01-01-2015)
General Information

  1. Section 03 contains monetary amounts.

  2. The entries are of variable lengths.

  3. All entries are dollars only except 03TAX, 03TET and 03TRV on Form 1065 and 0326, 0327, 0328, 03TET and 03TRV on Form 1065-B which can be dollars and cents.

  4. If any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the Special Income Code must be "1" .

3.12.15.5.2  (01-01-2015)
Error Record Format

  1. Data in Section 03 is obtained from Form 1065, Form 8825 (Rental Real Estate Income and Expenses of a Partnership or an S Corporation) and Schedule F (Profit or Loss From Farming). See Exhibit 3.12.15-2, Form 1065, U.S. Return of Partnership Income.

  2. The Form 1065 field designators, the title and the location on the return where the data is obtained is shown below:

    Field Field Length Title   Location on Form 1065
    0309 15 Net Salary and Wages (Other than to partners) (+) Form 1065, page 1, Line 9
    0310 15 Guaranteed Payments to Partners (+) Form 1065, page 1, Line 10
    0311 15 Repairs Deduction (±) Form 1065, page 1, Line 11
    0312 15 Bad Debts Deduction (±) Form 1065, page 1, Line 12
    0313 15 Rent Deduction (+) Form 1065, page 1, Line 13
    0314 15 Taxes/Licenses (+) Form 1065, page 1, Line 14
    0315 15 Net Interest (+) Form 1065, page 1, Line 15
    0316C 15 Depreciation Deduction (±) Form 1065, page 1, Line 16c
    0317 15 Depletion (±) Form 1065, page 1, Line 17
    0318 15 Retirement Programs (±) Form 1065, page 1, Line 18
    0319 15 Employee Benefit Plans (±) Form 1065, page 1, Line 19
    0320 15 Other Deductions (±) Form 1065, page 1, Line 20
    0321 15 Total Deductions (±) Form 1065, page 1, Line 21
    0322 15 Ordinary Income (Loss) from Business (±) Form 1065, page 1, Line 22
    03TAX 15 3.5% Tax (+) Form 1065, page 1, write-in above Line 22.
    03TET 15 Federal Telephone Excise Tax (+) Form 1065, page 1, on the dotted line to the left of Line 22
    03TRV 15 Federal Telephone Excise Tax (Verified) (+) ERS Input Only
    03A01 15 Beginning Inventory Amount (+) Form 1125-A, Line 1
    03A02 15 Net Purchases (±) Form 1125-A, Line 2
    03A06 15 Total Costs (±) Form 1125-A, Line 6
    03A07 15 Ending Inventory Amount (+) Form 1125-A, Line 7
    03GRT 15 Gross Rents (VALID FOR 198712 AND PRIOR) (+) Form 1065, page 1, Line 6a (PRIOR YEAR FORM ONLY)
    03H02 15 Gross Rents (+) Form 8825, Line 18a
    03FL1 15 Sale of Livestock (±) Schedule F, Line 1c
    03FL3 15 Gross Farm Income Cash (±) Schedule F, Line 9* (dotted portion)
    *(Line 11, dotted portion for prior years)
  3. The Form 1065-B field designators, the title and the location on the return where the data is obtained is shown below: (See Exhibit 3.12.15-3, Form 1065-B, U.S. Return of Income for Electing Large Partnerships)

    Field Field Length Title   Location on Form 1065-B
    0312 15 Net Salary and Wages (+) Form 1065-B, page 1, Line 12
    0313 15 Guaranteed Payments to Partners (+) Form 1065-B, page 1, Line 13
    0314 15 Repairs Deduction (±) Form 1065-B, page 1, Line 14
    0315 15 Bad Debts Deduction (±) Form 1065-B, page 1, Line 15
    0316 15 Rent Deduction (+) Form 1065-B, page 1, Line 16
    0317 15 Taxes/Licenses (+) Form 1065-B, page 1, Line 17
    0318 15 Net Interest (+) Form 1065-B, page 1, Line 18
    0319C 15 Depreciation Deduction (±) Form 1065-B, page 1, Line 19c
    0320 15 Depletion (±) Form 1065-B, page 1, Line 20
    0321 15 Retirement Plans (±) Form 1065-B, page 1, Line 21
    0322 15 Employee Benefit Programs (±) Form 1065-B, page 1, Line 22
    0323 15 Other Deductions (±) Form 1065-B, page 1, Line 23
    0324 15 Total Deductions (±) Form 1065-B, page 1, Line 24
    0325 15 Taxable Income (Loss) from Business (±) Form 1065-B, page 1, Line 25
    0326 13 Tax Due (+) Form 1065-B, page 1, Line 26.
    03TET 15 Federal Telephone Excise Tax (+) Form 1065–B, page 1, on the dotted line to the left of Line 27
    03TRV 15 Federal Telephone Excise Tax (Verified) (+) ERS Input Only
    0327 15 Other Payments (+) Form 1065-B, page 1, Line 27
    0328 15 Tax Due/Overpayment (±) Form 1065-B, page 1, Line 28/Line 29
  4. Invalid Condition - Any field in Section 03 will be invalid if not all numeric.

  5. Correction procedures - Check for coding and transcription errors or misplaced entries.

3.12.15.6  (01-01-2015)
Section 04 Errors

  1. This section identifies Section 04 field errors.

3.12.15.6.1  (01-01-2015)
General Information

  1. Section 04 contains monetary amounts.

  2. The entries are of variable lengths.

  3. All entries are dollars only.

  4. If any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , the Special Income Code must be "1" .

3.12.15.6.2  (01-01-2015)
Error Record Format

  1. Data in Section 04 is obtained from Form 1065. See Exhibit 3.12.15-2, Form 1065, U.S. Return of Partnership Income.

  2. The Form 1065 field designators, the title and the location on the return where the data is obtained is shown below:

    Field Field Length Title   Location on Form 1065
    0419D 15 Mortgages, notes, bonds payable in 1 year or more (±) Form 1065, Schedule L, Line 19b, Column (d)
    04PCA 15 Partners' Capital Account Ending (±) Form 1065, Schedule M-2, Line 9
  3. The Form 1065-B field designators, the title and the location on the return where the data is obtained is shown below: (See Exhibit 3.12.15-3, Form 1065-B, U.S. Return of Income for Electing Large Partnerships).

    Field Field Length Title   Location on Form 1065-B
    0401 15 Interest (±) Form 1065-B, page 2, Part II, Line 1
    0402 15 Ordinary Dividends (±) Form 1065-B, page 2, Part II, Line 2a
    0403 15 Royalties (±) Form 1065-B, page 2, Part II, Line 3
    0404 15 Excess Net Short-Term Gain Over Loss (±) Form 1065-B, page 2, Part II, Line 4
    0405 15 Other Income (Loss) (±) Form 1065-B, page 2, Part II, Line 5
    0406 15 Total Income (Loss) (±) Form 1065-B, page 2, Part II, Line 6
    0407 15 Interest Expense (+) Form 1065-B, page 2, Part II, Line 7
    0408 15 State/Local Income Tax (+) Form 1065-B, page 2, Part II, Line 8
    0409 15 Charitable Contributions (+) Form 1065-B, page 2, Part II, Line 9
    0410 15 Total Miscellaneous Itemized Deductions (+) Form 1065-B, page 2, Part II, Line 10a
    0410B 15 Deductible Miscellaneous Amount (+) Form 1065-B, page 2, Part II, Line 10b
    0411 15 Other Deductions (+) Form 1065-B, page 2, Part II, Line 11
    0412 15 Total Deductions (+) Form 1065-B, page 2, Part II, Line 12
    0413 15 Taxable Income (Loss) (±) Form 1065-B, page 2, Part II, Line 13
    04A01 15 Beginning Inventory Amount (+) Form 1065-B, page 2, Form 1125-A, Line 1
    04A02 15 Net Purchases (±) Form 1065-B, page 2, Form 1125-A, Line 2
    04A06 15 Total Costs (±) Form 1065-B, page 2, Form 1125-A, Line 6
    04A07 15 Ending Inventory Amount (+) Form 1065-B, page 2, Form 1125-A, Line 7
    04H02 15 Gross Rental (+) Form 8825, Line 18a
    04FL1 15 Sale of Livestock (±) Schedule F, Line 1c
    04FL3 15 Gross Farm Income Cash (±) Schedule F, Line *9 (dotted portion)
    *(Line 11 for prior year)
  4. Invalid Condition - Any field in Section 04 will be invalid if not all numeric.

  5. Correction procedures - Check for coding and transcription errors or misplaced entries.

3.12.15.7  (01-01-2015)
Section 05 Errors

  1. This section provides instructions for correcting Section 05 error conditions.

3.12.15.7.1  (01-01-2015)
General Information

  1. Section 05 contains address information of the partnership filing Form 1065.

  2. Section 05 will be present if any the following conditions exist:

    • Contains an address change.

    • Form 1065, page 1, Line G, Box "3" is checked to indicate an address change.

  3. This section cannot be present on a "G" Coded short length record.

  4. Section 05 can be present on other short length records.

  5. Section 05 for Form 1065-B contains monetary amounts.

    1. All entries are dollars only.

    2. If any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , the Special Income Code must be "1" .

3.12.15.7.2  (01-01-2015)
Foreign Address -
General Information

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

  2. The determination of a Foreign Address is based only on the address of the partnership.

    1. A Foreign or 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.

      • American Samoa

      • Federated States of Micronesia

      • Guam

      • Marshall Islands

      • Northern Mariana Islands

      • Palau

      • Puerto Rico

      • Virgin Islands (U.S.)

  3. An Army Post Office (APO), Diplomatic Post Office (DPO) or Fleet Post Office (FPO) is not a Foreign address. The U.S. Postal Service established new address requirements for APO/DPO/ FPO addresses. If an address appears in the old APO/DPO/FPO format, convert to the new State Code abbreviation based on the ZIP Code. For example, "APO New York, NY 091XX" , would be converted to "APO AE 091XX" . Refer to the APO/DPO/FPO conversion chart below:

    If ZIP Code is... Then...
    340 AA
    090-098 AE
    962-966 AP
  4. 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.

3.12.15.7.2.1  (01-01-2015)
♦Foreign Addresses (OSPC Only)♦

  1. A Foreign Address will contain:

    • Street address or P.O. Box

    • City or town name

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

    • Postal Code, if present can be before or after the city, town, province, state, county, etc. name but always before the Foreign country.

    • Foreign country

  2. Returns with an address in the U.S. Possessions/Territories are considered foreign returns for processing purposes and are entered in the same way as domestic addresses.

    1. A two-character alpha code must be entered in Field 05ST 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 for U.S. Possessions/Territories. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries and Exhibit 3.12.15-4.

3.12.15.7.3  (01-01-2015)
Error Record Format

  1. Listed below are the fields contained in Section 05. Data in this section is obtained from Form 1065: (See Exhibit 3.12.15-2, Form 1065, U.S. Return of Partnership Income).

    Field Designator Maximum Length Title Location on Form 1065
    05CON 35 "In-Care-Of" Name Entity Section, Form 1065
    05FAD 35 Foreign Address Entity Section, Form 1065
    05ADD 35 Street Address Entity Section, Form 1065
    05CTY 22 City Entity Section, Form 1065
    05ST 2 State Entity Section, Form 1065
    05ZIP 12 ZIP Code Entity Section, Form 1065

3.12.15.7.4  (01-01-2015)
♦Field 05CON - "In Care Of" Name♦

  1. Description - Field 05CON is located in the Entity section of the return.

  2. Valid Condition - Field 05CON has 35 positions and the 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 05CON 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:

    1. 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 05CON.

    A blank is in the first position,
    1. Delete blank.

    2. Enter the "In-Care-Of" name beginning with an alpha or numeric in Field 05CON.

    The first character of the "In-Care-Of" name is not alpha or numeric,
    1. Verify "In-Care-Of" name on the return.

    2. Enter the "In-Care-Of" name beginning with an alpha or numeric in Field 05CON.

    Two consecutive blanks are present between significant characters, Delete any unnecessary blanks in Field 05CON.

3.12.15.7.5  (01-01-2015)
♦Field 05FAD - Foreign Address♦

  1. Description - Field 05FAD is located in the Entity section of the return.

    1. This field will contain an entry when there is a Foreign Address present on the return.

    2. Field 05FAD should not be present on "G" Coded short length records.

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

  3. Invalid Conditions - Field 05FAD 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 05FAD is present,
      1. GTSEC 05.

      2. Ensure Field 05CTY contains a Foreign Country Code and Field 05ST contains a "." (period/space). See Document 7475.

        Exception:

        Use the Country Code based on the province in Field 05CTY if the Foreign Address is from Canada and the address contains a province name or abbreviation. See Exhibit 3.12.15-5, Province/Country Code - Canada Only.

      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 05FAD. See (Exhibit 3.12.15-6, Province, State and Territory Abbreviations).
      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...
      Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, 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.
      Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, 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 05FAD.

      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.

3.12.15.7.6  (01-01-2015)
Field 05ADD - Street Address

  1. Description - Field 05ADD is located in the Entity section of the return.

    • Field 05ADD should not be present on "G" Coded short length records.

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

  3. Invalid Condition - Field 05ADD will generate as an 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 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 coding and transcription errors.

      If... Then...
      The first position is blank, All positions must be blank.
      Field 05ADD is present, Fields 05CTY, 05ST and 05ZIP must be present.
      Street address is in error and a valid Major City Code is present, Correct by entering the entire name of the city in Field 05CTY and the State Code in Field 05ST. (See Document 7475)
      A good address is not located, Delete address and revert to INOLE.
    2. If Form 8822 (Change of Address) or Form 8822-B (Change of Address - Business) is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822 or Form 8822-B to the return.

    If... Then...
    The information is the same, Take no action and continue processing.
    The information is different,
    1. Enter address shown on Form 8822/8822-B in Field 05ADD.

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

    3. Detach Form 8822/8822-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 8822/8822-B daily and hand carry to Entity Control for expedite processing.

3.12.15.7.7  (01-01-2015)
Field 05CTY - City

  1. Description - Field 05CTY is located in the Entity section of the return.

  2. Valid Condition - Valid characters are alpha and blank.

  3. Invalid Condition - Field 05CTY will generate as an 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.

      Note:

      Certain cities within each state are designated "Major Cities" and are assigned a special code of two alpha characters. ISRP will enter the Major City Code as appropriate. This code represents the city and state and is transcribed on the error record with no intervening blanks and no other characters in the City field either before or after the code.

    • Foreign Country Code is not valid or Field 05CTY contains "XX" .

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Determine if a Major City Code is used.

      Note:

      For a listing of Major City Codes, See Document 7475.

      If... Then...
      A Major City Code is used, Field 05CTY must be present.
      Field 05CTY contains an error, Check to see if the Major City Code is correct.
      Field 05CTY 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 05CTY is present, Field 05ST (State) must be present.
      A Foreign Address is shown on the return, Enter appropriate Foreign Country Code in Field 05CTY (See Document 7475)

      Exception:

      Use the country code based on the province in Field 05CTY if the Foreign address is from Canada and the address contains a province name or abbreviation. See Exhibit 3.12.15-5, Province/Country Code - Canada Only.

      Field 05CTY (Field 06CTY) contains an incorrect Country Code or "XX" , Enter appropriate Foreign Country Code in Field 05CTY (See Document 7475).
    3. If Form 8822 (Change of Address) or Form 8822-B (Change of Address - Business) is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822/Form 8822-B to the return.

3.12.15.7.8  (01-01-2015)
Field 05ST - State

  1. Description - Field 05ST is located in the Entity section of the return.

  2. Valid Condition - Valid characters are alpha and blank.

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

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. For a list of valid State Codes, See Document 7475 and Exhibit 3.12.15-4, U.S. Possessions/Territories State Abbreviations and ZIP Codes.

    3. If unable to perfect, DLSEC 05.

    4. If Form 8822 (Change of Address) or Form 8822-B (Change of Address - Business) is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822/8822-B to the return. See IRM 3.12.15.7.6.

3.12.15.7.9  (01-01-2015)
Field 05ZIP - ZIP Code

  1. Description - Field 05ZIP is located in the Entity section of the return.

  2. Valid Condition - Valid characters are numeric and blank.

  3. Invalid Condition - Field 05ZIP will generate as an 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 entry does not match the Major City Code or State Code.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

      If... Then...
      Field 05ZIP is transcribed incorrectly, Enter the correct entry from the return. Only the first five digits are required to be entered in Field 05ZIP.
      A valid ZIP Code is not available from the return or an attachment,
      1. Determine the first 3 digits of a valid ZIP Code for the Major City. (See Document 7475 or Exhibit 3.12.15-4 for U.S. Possessions/Territories ZIP Codes).

      2. Enter "01" for the fourth and fifth digits in Field 05ZIP.

      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 in Field 05ZIP of the State shown in the address using Document 7475.
    2. If Form 8822 (Change of Address) or Form 8822-B (Change of Address - Business) is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822/Form 8822-B against the return.

3.12.15.7.10  (01-01-2015)
Section 05 - Form 1065-B

  1. Data in Section 05 is obtained from Form 1065-B. See Exhibit 3.12.15-3, Form 1065-B, U.S. Return of Income for Electing Large Partnerships.

  2. The field designators, the title and the location on the return where the data is obtained is shown below:

    Field Maximum Length Title   Location on Form 1065-B
    0519D 15 Mortgages, notes, bonds payable in 1 year or more (±) Form 1065-B, Schedule L, Line 19, Column (d)
    05PCA 15 Partners' Capital Account Ending (±) Form 1065-B, Schedule M-2, Line 9
  3. Invalid Condition - Any field in Section 05 will be invalid if not all numerics.

3.12.15.8  (01-01-2015)
Section 06 Errors

  1. This section provides instructions for correcting Section 06 error conditions.

3.12.15.8.1  (01-01-2015)
General Information

  1. Section 06 contains the address information of the partnership filing Form 1065-B.

  2. Section 06 will be present if any of the following conditions exist:

    • Contains an address change.

    • Form 1065-B, page 1, Line G, Box "3" is checked to indicate an address change.

  3. This section cannot be present on a "G" coded short length record.

  4. Section 06 can be present on other short length records.


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