3.12.38  BMF General Instructions (Cont. 1)

3.12.38.2 
Control Clerk Guidelines

3.12.38.2.5 
Document Control - Pulling ERS Suspense Documents, ERS 17-40

3.12.38.2.5.1  (01-01-2014)
ERS 17-40 (ISRP)

  1. Pull from the carts of documents received from ISRP for that day, those individual documents shown on the New Suspense List as suspended by Code and Edit.

    1. Replace each document removed from its original block with the original copy of its associated charge-out.

    2. Attach the remaining copy of the charge-out to the removed document.

    3. Some SPCs use a laser printed Form 8161.

    4. If the document is missing, notify your supervisor for recommendation on additional searching.

    5. If unable to locate the document, indicate on Form 8161

    6. Mark the document ID on the New Suspense List as missing.

    7. Date and initial your entry on the New Suspense List.

  2. Pull from the carts of documents received from ISRP for previous days, those individual documents shown on the New Suspense List as suspended by Error Correction.

    1. Replace each document removed from its original block with the original copy of its associated charge-out.

    2. Attach copy of the charge-out to the removed document.

  3. Ensure that all source documents for each record shown by the New Suspense List to be received from Unpostable Resolution have actually been received.

    1. Associate the charge-outs with the unpostable documents.

    2. Forward the original of the charge-out to Files for all unpostable documents received from Unpostable Resolution. Attach the remaining copies to the unpostable document.

  4. Ensure that the documents for all entries not marked missing, on the Suspense List, are present.

  5. Ensure that charge outs for all entries on the New Suspense List including those marked as missing are present.

  6. The charge outs for the records on the New Suspense List will have the literal "SUSPENSE" .

3.12.38.2.5.2  (01-01-2014)
ERS 17-40 (SCRIPS)

  1. Documents processed through Service Center Recognition/Image Processing System (SCRIPS) will be received in ERS without staples and sorted into "Perfect" (Documents without attachments) and "Imperfect" (Documents with attachments and/or envelopes).

  2. Pull from the carts of documents received from SCRIPS for that day, those individual documents shown on the New Suspense List as suspended by Code and Edit. Replace each document removed from its original block with the original copy of its associated charge-out.

  3. When pulling documents from a "Perfect" (documents with no attachments) truck, ensure that all pages are pulled (page 1, 2 and/or Schedule B)

  4. When pulling documents from an "Imperfect" (Documents with attachments and/or envelopes) truck:

    • Check upper right corner for a seven-digit sequence number.

    • Go to colored folder at the back of the gusset and pull the corresponding attachments.

    • Staple attachments to return before routing.

  5. Pull from the carts of documents received from SCRIPS for previous days, those individual documents shown on the New Suspense List as suspended by Error Correction.

    1. Replace each document removed from its original block with the original copy of its associated charge-out. Follow instructions in (2) above for "Imperfect" returns

    2. Attach copy of the charge-out to the removed document.

  6. Ensure that the documents for all entries not marked missing, on the Suspense List, are present.

  7. Ensure that charge-outs for all entries on the New Suspense List including those marked as missing are present.

  8. The charge-outs for the records on the New Suspense List will have the literal "SUSPENSE" .

3.12.38.2.5.3  (01-01-2014)
Disposition of Documents

  1. The instructions in this section for routing and filing refer to several different suspense files. These files may be maintained separately or combined in a single ERS suspense file. The ERS automated control system will be easier to maintain by using a single ERS suspense file.

  2. The Action Code printed on the charge-out indicates the disposition of the document. Form 8161 stays with the document for routing and/or history.

  3. Action Code 21X, 225 and 226 - Correspondence:

    1. If the correspondence has already been issued, place the document and charge-out in the correspondence suspense file in DLN order.

    2. If the correspondence has not yet been issued, issue the correspondence, then place the document and charge-out in the suspense file. If the correspondence cannot be prepared immediately, place one copy of the charge-out in the suspense file to preserve a research trail.

  4. Action Codes 331 and 332 - Criminal Investigation Review:

    1. Place the documents and charge-outs in the folder or basket for review by Criminal Investigation.

    2. If the documents will leave the immediate work area, detach a copy of the charge-out and place in a Criminal Investigation suspense file.

  5. Action Code 370 - Examination Review:

    1. Place the documents and charge-out in the folder or basket for review by Examination.

    2. If the documents will leave the immediate work area, detach a copy of the charge-out and place in a Examination suspense file.

  6. Action Codes 310, 320, 333 through 337, 34X, 360 - Suspense to Other Functions:

    1. Use the second copy of the charge-out as a routing slip to the designated function at the campus.

    2. Detach a copy of the charge-out and place in a suspense folder for the designated function in DLN order.

    3. Prepare Form 4227 or local routing control and route the documents according to local procedures.

    Caution:

    Determine if an MeF return suspended on AC 341 needs to be routed to Entity (AC 321). If both action codes are present on an MeF return, it must be expedited to Entity prior to working the return in Rejects.

  7. Action Codes 351, 410, 510, 6XX, 700, 900 - Workable Suspense:

    1. Associate the document with the current Workable Suspense Inventory report.

    2. If required by local procedures, route to the Tax Examiner designated to work the cases for the specified Action Code.

  8. Action Codes 352 through 355 - Suspense:

    1. If the appropriate CC(s) has already been input by an Error Correction Examiner, place the document and charge-out in the file designated for suspense in DLN order.

    2. If transcript research has not been prepared, input the appropriate other CC(s), then place in the suspense file.

  9. Action Codes 420 through 490 - Management Suspense:

    1. Place the documents in a suspense file for management suspense and system problems.

    2. The file should be maintained in DLN order unless otherwise instructed.

  10. Action Codes 511 through 515 - Missing Documents:

    1. If the document is not available, place a copy of the charge-out in the missing document suspense in DLN order. The first and second copies of the charge-out are used to initiate a special search.

    2. If the document is attached for Action Codes 511–514, input CC ACTVT and route the document and charge-out for association with the Workable Suspense Inventory report on the following day.

3.12.38.2.5.4  (01-01-2014)
Rejected Records List, ERS 05–40

  1. This report lists each record that is deleted from ERS. It is printed each day and contains the following:

  2. For each rejected record, there is a charge-out, with the literal "REJECT" .

    1. Note:

      Make sure that you have a document and charge-out for each entry on the Rejected Records List.

  3. Route the documents according to the Action Code shown on the listing.

  4. Action Code 610 or 611 — Renumber.

    1. After verifying that the same DLN is shown on the New DLN Summary as on the document, route the documents to Batching with the new Form 813 or 1332.

    2. Action Code 611 items that show a literal should be routed to Accounting.

  5. Action Code 620 — route the documents to the Automated Non-Master File (ANMF) function in Accounting. See Figure 3.12.38–24.

    Reminder:

    All ANMF work has been centralized at Cincinnati Submission Processing Campus - Accounting Operation.

  6. Action Code 630 — routed to Batching for re-input after verifying that Form 3893 has been prepared for each block DLN.

    • Note:

      Occasionally, Action Code 630 is entered for non-re-input items where subsequent manual Service Center Control File (SCCF) adjustments will be prepared.

  7. Action Code 640 — indicates documents that have been voided.

    • Route campus initiated documents to the originator.

    • Otherwise, route to files unless other routing instructions are attached to the return.

  8. Action Code 650 — Route International documents to the Ogden Submission Processing Campus (OSPC) per local procedures.

  9. Action Code 660 — Data Control Delete.

    • Route to Data Controls if not already sent

  10. Action Code 670 — Missing documents.

    • Attach all documentation and research to the approved Form 6752 and retain in the closed missing documents file

    • A separate copy of Form 6752 is routed with Form 8161 (Charge-out) to files

  11. Keep the Rejected Records List for one year as a reference.

3.12.38.2.5.4.1  (01-01-2014)
General Information

  1. While a record is in ERS, it will appear on an inventory listing and will be controlled by the DLN. When it is corrected or cleared, no verification of correction is required for an ERS record.

    1. Deleted records must be matched against the Rejected Records List.

    2. The routing of the document depends on the action shown on the listing.

3.12.38.2.5.5  (01-01-2014)
Loose Documents - General Procedures

  1. This section of the manual lists the procedures that are to be followed for loose documents.

  2. A loose document is any document, form, or letter that was detached or cannot be associated with other related forms.

  3. When a loose document is found, check the inventory to see if the case is in SCRS or ERS.

    If... Then...
    Document is found in inventory, Use the information to complete the case.
    Document is not found in inventory, Follow Late Reply Procedures IRM 3.12.38.5.1.10

3.12.38.2.5.6  (01-01-2014)
Suspense Action Codes

  1. This section of the manual lists the procedures that are to be followed for the disposition of ERS records and documents. Information in this section includes the following:

    • Assigning Action Codes to re-suspend records

    • Use of the suspense charge-out by Tax Examiners

3.12.38.2.5.6.1  (01-01-2014)
Suspense Charge-Out

  1. Use the charge-out to record such actions as:

    • Re-suspending — Enter the new Action Code and the date you resuspended the record.

    • Routing to other areas — "X" the appropriate campus function or "other" listed on the Form 8161.

    • Recording data received from research, or history items.

    • Processing instructions for the person who may follow up on the case after you.

    • Deleting a record with CC RJECT or NWDLN, enter the Action Code assigned and the date of deletion.

3.12.38.2.6  (01-01-2014)
Input of Correspondence

  1. Correspondence may be input, at campus option, by ERS Tax Examiners, or clerk typists.

  2. Letters generated by Submission Processing must be approved by Headquarters when they are intended for dissemination to 10 or more persons. These letters are numbered in accordance with IRM 1.17.1, Organizational Description, Authority, Role and Responsibilities, and IRM 1.17.2, Publishing Management. Form letters, pattern letters, and pattern paragraphs are prescribed by Headquarters for use by SPCs. Do not make changes to text format, date of issue (or revision), or physical characteristics of these letters and paragraphs without prior Headquarters approval. In addition, Quick Notes that are computer generated must be forwarded to Headquarters for approval. Submit requests for new letters using Form 1767, Publishing Services Requisition, following procedures outlined in IRM 1.17.1 and IRM 1.17.2. For minor changes or additions to current letters, follow procedures in IRM 3.0.275, Business Results Measures for Submission Processing Functions.

  3. Letters are input on the terminal using CC LETER. Enter CC LETER as follows:

    1. Line 1 - A valid TIN, MFT and tax period (space between items). If SSN use one space between MFT and if EIN use two spaces between MFT. (See SERP - IDRS Job Aid for LETER http://serp.enterprise.irs.gov/databases/irm-sup.dr/job_aid.dr/command-code.dr/leter.htm)

      Note:

      If TIN is for another taxpayer, see lead and/or manager.

    2. Line 2 - IDRS letter number, and space over until the alpha "R, S, Y or Z" is under the second position of the TIN (Column 8).

    3. Line 3 - A 2 digit signature code for the individual whose signature should appear on the letter; three spaces and a 2 digit OMB code (Column 6).

    4. Line 4 - Enter 2 digit return address code, followed by "XMIT" (transmit, usually Page Up/Pg Up key).

  4. Your response will be CC LPAGE with the letter format. Enter information on the CC LPAGE screen as follows:

    1. Line 1 - The data that you entered on line 1 with CC LETER will be displayed.

    2. Line 2 - Enter the IDRS letter number and Signature Code.

      Note:

      Information that was input with CC LETER will be displayed.

    3. Enter the name of the taxpayer to whom the letter should be addressed in the NL1> Field. This information is generated if the record is present on the Taxpayer Identification File (TIF). Ensure that the name matches what is on the return.

    4. Enter second name line information in Field NL2>, if there is one on the return. Form 1041s and returns with foreign addresses also have third and fourth name line information (NL3> and NL4>on the screen).

      Note:

      Always use the address on the document. However, common abbreviations are acceptable. ( Document 7475)

    5. Line 4 - Office of Management and Budget (OMB) and Enclosure information is displayed.

    6. Line 5 - Enter the proper salutation.

      Example:

      Dear Sir, etc.

    7. Line 6 - Enter the paragraph codes, from the letter being used, that describe what information is needed.

    8. Line 7 - If written fill-ins are required, begin the fill-in information on line 7. Refer to the letter you are using to determine the number of spaces available.

      Example:

      118C Letter

  5. For additional information on inputting letters on IDRS, see IRM 2.4.6 for CC LETER or local procedures.

3.12.38.2.6.1  (01-01-2014)
Correspondence Suspense File

  1. When the correspondence letter has been prepared, the return is placed in a suspense file awaiting the reply from the taxpayer.

    • File ERS documents in DLN order.

    • File SCRS documents by Reject Sequence Number

      Note:

      SCRS documents can be filed by DLN if the campus makes that decision.

  2. When taxpayer reply is received:

    1. Stamp letter with Rejects Unit received date, if not already date stamped.

    2. Associate the reply with document and register.

    3. Check envelope for remittance or additional information.

    4. Staple the letter and attachments to back of original document in the upper left hand corner.

    5. For ERS, enter CC ACTVT to bring the record to the workable file. For SCRS the record is already in the workable inventory.

  3. When the taxpayer reply for EP/EO correspondence is received, the ERS clerical team will make copies of the needed information, ensuring each copy is clear and centered. All staples will be pulled prior to making copies. Refer to IRM 3.20.12.3.8 and 3.20.12.3.10 (7) and (8), Imaging and Perfecting Exempt Organization Returns for Public and Internal Viewing for additional re-imaging information. Information will be attached in the following order (do not staple):

    1. Copy of the front page of the return, or if not available, a BRTVU or INOLES print containing all of the following information: EIN, TXPD, Form, Subsection Code and all Entity information.

    2. Copies of any pages of the return that were amended.

    3. Copies of amended or new Schedules, in alpha order.

    4. Deliver to Imaging team daily. Do not hold in ERS clerical area.

    5. Route the original return and attachments to Files.

    6. ERS will charge the time to OFP 550-38901.

  4. Maintain each document and Correspondence Action Sheet in a suspense file for ten days after the period given for the taxpayer to respond.

    • If, after the end of the suspense period, no reply is received, the return is stamped "No Reply" with the date and routed to Tax Examiners to be worked.

    • If a reject register is more than 45 days old, check the actual correspondence date to be sure that the taxpayer has been given at least ten days longer than the date specified.

    • If the ERS suspense period has expired and additional time should be given to the taxpayer, the record may be resuspended with a 212 Action Code

    • If notified by Taxpayer Advocate Service or the taxpayer that the correspondence was not received, reissue the original correspondence (to the correct address) and resuspend.

  5. If a reply is received without the proper identification number, research the inventory to obtain the correct number.

    • For ERS, use CC ERINV with the TIN to search for a DLN.

    • Use CCs NAMEE or NAMEB if the TIN and the DLN are missing.

3.12.38.2.6.1.1  (01-01-2014)
BMF Undeliverable Correspondence

  1. Process undeliverable correspondence for BMF, as follows: Compare the undeliverable address with the return.

    If... Then...
    There is a different address on the return, Re-send the correspondence to the return address and SSPND 211.

    Note:

    This is the second correspondence.

    The return address is the same as the undeliverable, Research INOLES, ENMOD, and/or NAMEE for a better address. If a different new address is found, re-send correspondence and SSPND 211.
    Research address is the same as the undeliverable, but there is a different "location address" on IDRS, Re-send the correspondence to the different "location address" and SSPND 211.

    Note:

    This is the second correspondence.

  2. If a better address cannot be found, or if the letter is undeliverable a second time, treat as a "No Reply."

3.12.38.2.6.1.2  (01-01-2014)
EO Undeliverable Correspondence (OSPC Only)

  1. For Exempt Organization (EO) returns, process undeliverable correspondence as follows:

    If... Then...
    The letter is returned as undeliverable, Compare the address on the letter with the return.
    A different address is shown on the return, Re-send the letter to the address on the return.

    Note:

    This is the second correspondence.

    The addresses (primary address and location address, if shown) on INOLES, ENMOD, and/or NAMEE are the same as the letter and return, Send the letter to an address using the following priority order:
    • Address where the organization's books are located (Form 990, Part VI, line 91, Form 990-EZ, Part V, line 42, Form 990-PF, Part VII-A, line 12, Form 1120-POL, Line 5c, Form 990–T, Item J, Page 1. Not applicable for Form 1041-A, 5227, 4720 or 5578),
    • Address of the paid Preparer (Form 990, bottom of page 6, For 990-EZ, bottom of page 2, Form 990-PF, bottom of page 12, Form 1120-POL, bottom of page 1, Form 5227, bottom of page 4. Not applicable for Form 5578)
    • Address of the officer ( Form 990, Part V, Form 990-EZ, Part IV, Form 990-PF, Part VIII, item 1. Not applicable for Forms: 1120-POL, 990-T, 1041-A, 5227, 4720 or 5578).

  2. If no better address is available, or if the letter is undeliverable for a second time, treat as "No reply" .

3.12.38.2.6.1.3  (01-01-2014)
No Reply Cases

  1. If the taxpayer does not reply to a request, the return is pulled from suspense file and marked "No reply."

  2. Attach the Correspondence Action Sheet to the back of the return.

  3. If the correspondence is "undeliverable" and if the letter comes back a second time as "undeliverable" , attach Correspondence Action Sheet, letter and envelope to the back of the return and treat it as a "No Reply" . Enter CCC 3 and process the return immediately

    Reminder:

    The form specific IRM takes priority over the 3.12.38 IRM.

    .

  4. If we were corresponding due to an EC 026 - Tax Period, then input a TC 474 using REQ77 and a one cycle delay. Use the year prior to the return's tax period.

    Example:

    For a 201112 return, input a TC 474 for 201012 tax period.

3.12.38.2.6.1.4  (01-01-2014)
Late Reply

  1. When a reply is received after the suspense time has expired and the return "is in" ERS inventory, process the reply following the "reply to correspondence" instructions in the form specific IRM.

  2. When a reply is received after the suspense time has expired and the return is "not in" ERS inventory or a loose schedule is routed from Accounts Management, research IDRS to determine if the return is assigned to another area. Use TXMOD and look at controls and history items to determine where the return is assigned. The first five digits of the IDRS number identifies the area.

    Note:

    The same instructions apply to late replies for electronically filed returns.

    If... Then...
    The return has been assigned to another area, Follow local procedures to route the late reply to the area. Late replies must be routed to the proper function within five days of receipt.

    Note:

    Use UPTIN to see if the return is in Unpostables.

    The return is an International (Foreign) return, Route to Accounts Management in Philadelphia at DP N-441.
    The return is not assigned to another area, Compare the late reply (schedule/form/attachment) with the accompanying letter, if attached, and follow procedures in (3) below.

    Note:

    If no copy of our letter is with the response, try to determine the changes and follow procedures in (3) below.

  3. If the return is not in ERS inventory, and research has determined that the return is not assigned to another area, take one of the following actions:

    Note:

    The same instructions apply to late replies for electronically filed returns.

    If... Then...
    Changes the total tax, balance due, or refund, Route to Accounts Management/ Correspondence.
    Changes the entity (change to name control, name line, Filing Requirements), Route to Entity.
    Has an address change or minor name changes that do not affect the name control, The changes are to be input by Rejects. See IRM 3.13.2, BMF Account Numbers and IRM 2.4.9, Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG for procedures.
    Is for Form 941/944 and the reply for the date of final wages is within the period of the rejected return, Use CC FRM49 to input a TC 591 with Closing Code 75 and send the late reply to Files to be associated with the return.
    Is for Form 941/944 and the reply for the date of final wages is not within the period of the rejected return, Route to Accounts Management.
    Is for Form 2290 which includes Schedule 1,
    1. Stamp the Schedule 1 and return it to the taxpayer.
    2. Route Form 2290 to Accounts Management function.
    Is a Schedule K-1 for current or future tax year, Forward Schedules K-1 for processing per IRM 3.0.101.5.
    Is a Schedule K-1 for a prior year, Route to files to be associated with the Parent return.
    Is a letter 3875C, Route to Entity Control.
    is for EP/EO accounts, Route to EP/EO.
    Is for signature for Form 11C, Occupational Tax and Registration Return for Wagering, Route to Accounts Management/ Correspondence.
    Is for Form 851, Affiliations Schedule, Check INOLES on all subsidiary EINs to verify that the Filing Requirements have -14. If not, use CC FRM49 to input TC 590 with Closing Code 14. Route Form 851 to Files.
    Any other additional information or mis-routed, Route to appropriate area.

3.12.38.2.6.2  (01-01-2014)
Special Correspondence Procedures for 1120-F returns (Ogden Only)

  1. Any current year return claiming ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and any prior year return claiming ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is subject to the following procedures.

  2. Returns meeting the criteria above will be flagged with a purple tag indicating "CTW review" review when correspondence is initiated.

  3. If a reply is received, pull the return and give the reply and return to the Lead. Do not activate the return until it comes back from LB&I.

  4. If no reply is received, follow the same procedures.

3.12.38.2.7  (01-01-2014)
Documents Routed to Other Submission Processing Campus Functions

  1. Some returns require action by other areas of the campus before being worked by Rejects or ERS. These include the following:

    • Entity Control

    • Statute expiration cases

    • Criminal Investigation and Examination

    • Manual refunds

  2. For reject register items, prepare Form 3210:

    Title Action
    To Enter Name of area items are being sent to and the STOP number of the area
    Release Date Enter the day the returns are being sent.
    Page of Enter to identify the number of forms used to route the documents
    Transmittal Code Enter a transmittal number that identifies the receiving function.
    Numbered Leave blank
    Unnumbered Leave blank
    Document Identification Enter the DLN of each document in the transmittal
    Remarks Enter information on what needs to be done with the returns.
    Shipment Information Leave blank
    From Enter Reject Unit and stop number
    Releasing Official Name of individual routing the documents
    Received and verified Information filled in by the receiving area. It must include the name, phone number and date.
    Originator Telephone Number Enter Reject Unit phone number.
    Date acknowledged Enter date documents were received back in the Reject Unit.

  3. Every ERS suspense document has a 2 part Form 8161 attached.

  4. The original is used to pull or replace the document in Files.

  5. Use the second part of the charge out to control documents to other areas within the Submission Processing Campus.

    1. Copy two is attached and retained in a suspense file.

    2. The first copy stays on the document to inform the receiving area that the document is controlled by ERS.

    3. A separate routing form such as a Form 3210 may be used in the place of the Form 8161.

  6. SPCs that use local automated systems to control items routed to other functions must incorporate as much information from these procedures to ensure control of the routed items.

  7. As the documents are returned, enter the date in the Date acknowledged box of Form 3210, at the bottom of Form 8161, or in the appropriate area on the local automated system.

  8. All documents may be returned at one time with the transmittal or the documents may be sent back individually with a copy of the transmittal.

    1. After two weeks, contact the receiving organization by telephone regarding any documents that have not been returned.

    2. Note the response on Form 3210 or 8161.

    3. Initiate additional follow-up for delinquent items on a weekly basis if necessary but no later than two weeks.

    4. As ERS items are returned, pull copy 2 of the charge-out from the suspense file and activate Unworkable records with CC ACTVT.

    5. If ERS records are still not available when the suspense period expires, resuspend with the same Action Code. Note action in the "Resuspending" column of the charge out.

  9. Representatives from some of these areas may come to Rejects to examine and make a determination on the disposition of the documents.

    Reminder:

    In this case, Form 3210 is not required, take the action indicated on the Form 4227.

    1. If the return is to be cancelled, transfer any green rocker money to Form 3244 and process.

    2. Renumber the record to the DLN of the Form 3244 using reject Action Code 2-N or ERS CC NWDLN.

3.12.38.2.7.1  (01-01-2014)
Statute Expiration Cases

  1. The Internal Revenue Code provides that the IRS will assess and collect taxes and refund credits within a specific time limit.

  2. Rejects will review all prior year returns and all documents rejected for additional determination as statute expiration cases.

    1. Review involves those returns where the Statute of Limitations will expire within 90 days or less and those for which the statute has already expired.

    2. Each Submission Processing Campus distributes a monthly listing of statute alert tax periods.

  3. Potential statute expiration cases will be hand-carried to the Statutes Unit.

    1. For reject register documents, prepare Form 3210.

    2. For ERS documents, use Form 8161 for routing control.

    3. The Statute Stamp is good for 90 days from the date stamped.

    4. If the case has been in the inventory for longer than 90 days, hand-carry/reclear the case through the Statutes Unit.

    5. Rejects will keep control of these cases until they are returned from Statutes.

    6. Form 4227 will indicate either that the return should be processed or voided to Statutes.

    Exception:

    Do not route the following returns to Statutes:
    • Coded CCC W
    • TC 599 edited in upper left margin
    • 6020(b) returns
    • SFR returns

  4. Some cases will be received in Rejects which have already been identified as true statutes cases. These returns are not re-routed on Form 3210, but can be voided immediately to Files.

3.12.38.2.7.2  (01-01-2014)
Criminal Investigation and Examination

  1. Code and Edit and Error Correction will identify returns that suggest questionable or fraudulent refund schemes.

  2. The specific situations to be identified are included in other sections of IRM 3.11, Returns and Document Analysis and IRM 3.12, Error Resolution.

  3. For ERS, the following Action Codes are used to route cases to Examination:

    • 333 - Prompt Audit

    • 334 - Joint Committee

    • 335 - Frivolous Case

  4. For ERS, the following Action Codes are used to route cases to Criminal Investigation (CI):

    • 336 - Questionable Refund Detection Team (QRDT) Case

    • 337 - Other Criminal Investigation Division (CID)

  5. Action Code 331, Protest Review, are used for cases held in Error Resolution for review by a representative of Examination.

  6. Action Code 332, QRDT Review, are cases held for CI.

  7. For SCRS, all cases will use Computer Condition Code (CCC) U (Code and Edit) or Action Code 3 (Error Correction).

  8. When the case is returned from CID, follow the corrective action indicated on Form 4227 or other attachment.

  9. For ERS, enter a "C" in the Clear Code Field if instructed to process the return.

  10. Follow the same procedures for Action Code 370 (Examination) referrals.

3.12.38.2.7.3  (01-01-2014)
Entity Control

  1. Documents should be routed to Entity Control Unit if research is unsuccessful when:

    1. EIN is missing or mismatch

    2. EIN is invalid

    3. EIN is "applied for"

  2. ERS documents are suspended with Action Code 320 (paper returns) or 321 (MeF returns).

  3. Revenue Procedure 2007–62 allows taxpayers to file Form 2553, Election by a Small Business Corporation, with their initial Form 1120S. These returns will generate Action Code (AC) 347.

    • MeF will automatically generate AC 347 when a Form 2553 is transmitted with a Form 1120S.

    • Code & Edit will manually code AC 347 on Forms 1120S received with a Form 2553 attached to it.

    • AC 347 will have an automatic 20 day suspense period

  4. Following are the procedures to be followed for AC 347.

    • Suspense/Rejects will forward only the Form 8161 or local routing slip, if return was processed via MeF, to Entity Control.

    • Suspense/Rejects will route the Form 8161 or local routing slip and return, if paper, to Entity Control.

  5. Suspense/Rejects will do the following when documents are returned from Entity:

    If... Then...
    1120S, Form 8161 or local routing slip has TC 090 notated on it,
    • Hold case for one week (7 work days)

    • Then release for further processing.

    1120S, Form 8161 or local routing slip has TC 093/092 notated on it, and it has been converted to an 1120.
    1. Cancel the original DLN,

    2. Assign a new DLN, and

    3. Route to ERS Control Unit.

3.12.38.2.8  (01-01-2014)
Addresses

  1. This section of the manual lists the procedures that are to be followed for handling various address issues.

  2. Information in this section includes the following:

    • Identifying and transshipping international returns

    • APO/FPO addresses

    • Change of addresses

  3. Refer to IRM 7475 Job Aid for abbreviations for additional guidance.

3.12.38.2.8.1  (01-01-2014)
Form 8822 and Form 8822-B, Change of Address and Change of Address - Business

  1. Taxpayers may provide address changes on Forms 8822/8822-B, Change of Address/Change of Address - Business.

  2. Forms 8822/8822-B are to be processed by Entity Control Tax Examiners when received loose at the campus.

    Note:

    If Form 8822/8822-B is attached to the return and both have the same address information. No action is necessary.

  3. Forms 8822/8822-B received with taxpayer replies will be separated from the reply and routed to Entity Control.

3.12.38.2.8.2  (01-01-2014)
Transshipping Returns

  1. Prepare a non-suspense Letter 86C to notify the taxpayer that the return is being routed to appropriate SPC and that future returns should be mailed to that campus.

  2. Attach all IDRS prints used to determine the return is IMF and transship the return to appropriate SPC.

  3. Notate 86C prep on the document.

3.12.38.2.8.3  (01-01-2014)
APO/DPO/FPO Addresses

  1. The US Postal Service has given military addresses their own state abbreviations within certain ZIP code ranges. Allow only the following state codes for APO, DPO, and FPO addresses.

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

  2. Include the letters "APO" , "DPO" , or "FPO" in the city/state field line, enter the 2 digit state code, then enter the 5 digit zip code.

    Note:

    These are not considered "foreign" addresses.

3.12.38.2.9  (01-01-2014)
Verification and Release of Documents

  1. This section of the manual lists the procedures that are to be followed for verifying and releasing documents.

3.12.38.2.9.1  (01-01-2014)
Processing Instructions

  1. All renumbered documents should be held until verification that the new DLN has been properly transcribed and has properly updated the SCCF.

  2. DLNs can be verified from any of three different listings or from CC SCFTR.

    • The most efficient listing for DLN verification is the New DLN Record List, SCF 11–48, which lists in new DLN sequence all documents which have been renumbered from reject registers, ERS, or Form 4028. Although this listing may include items renumbered elsewhere in the SP Campus, this is the only listing in the same sequence as the source documents that have been blocked for input.

    • The Reject Disposition List, GMF 11-47 includes only those items that were renumbered from the Reject Register.

    • The Rejected Records List, ERS 05-40 includes only items renumbered in ERS.

  3. Compare the new DLN shown on the document with the new DLN on the listing.

    1. If the new DLN does not match, and the DLN shown on the document is correct, determine whether the erroneous DLN was established on the SCCF by checking the CRL Renumbered Transaction List or research the SCCF using CC SCFTR.

    2. If the erroneous DLN was established, prepare Form 4028 changing the erroneous DLN to the correct renumber DLN. Use From Code 0.

    3. If the erroneous DLN was not established and the original DLN not deleted, prepare Form 4028-A for the old DLN and the correct new DLN. Use From Code 4.

    4. If the new DLN on the Rejected Records List is correct, change the document to agree with the listing.

    5. If unable to determine the correct action, request assistance from Data Controls.

  4. When all items in a new block have been verified, route the block to Batching for input. Be sure to include the original Form 813 or Form 1332 as the block header document.

    Note:

    The second copy of Form 813 is routed to Accounting.

3.12.38.2.10  (01-01-2014)
Form 2848, Power of Attorney and Declaration of Representative (POA)

  1. Collect Power of Attorney (POAs)

  2. Ensure it is an original Form 2848, with both pages, not a copy or substitute.

    • Separate from other forms prior to faxing and reattach when complete.

  3. Fill out a Fax Cover Sheet and fax to the appropriate location using the following:

    If aligned to a Service Center Then use this fax number
    East of the Mississippi - Cincinnati 901-546-4115
    West of the Mississippi - Ogden 801-620-4249
    All International Taxpayers residing abroad 267-941-1017

  4. Notate "faxed to POA on MM/DD/YYYY" on each Form 2848 and reattach to return.

  5. Check ERINV to see if the return is open or closed:

    • If open, add to Replies to be pulled.

    • If closed, S letters go to Files and Y letters go in the proper box.

3.12.38.3  (01-01-2014)
Error Resolution System (ERS) Tax Examiner Guidelines

  1. This section of the manual lists the procedures that are to be performed by the ERS Tax Examiners. Information in this section includes the following:

    • General concepts

    • ERS Command Codes

    • IDRS Command Codes

    • General correction procedures

3.12.38.3.1  (01-01-2014)
General Concepts

  1. As new data enters the Submission Processing Campus (SPC) computer, the computer performs validity and consistency checks, mathematically verifies taxpayer computations, and codes the data to assure taxpayer notification of errors.

    • If the data for an input document passes all required checks, it is placed on a tape for transmittal to the Enterprise Computing Center at Martinsburg (ECCMTB). This is known as “good tape”.

    • If the data for an input document does not pass all validity checks, the record is placed in error status and falls out to ERS or SCRS.

  2. The Error Resolution System (ERS) is the replacement for the Service Center Replacement System known as SCRS.

  3. All ERS records are controlled by DLN and divided into three inventories:

    Type Definition
    Error Inventory
    • Records are accessed by block DLN and the documents are still in the complete block while being worked.

    • Each correction is validated and re-displayed immediately.

    Workable Suspense Inventory
    • Records are accessed by complete 14 digit DLNs

    • Documents have been pulled from the original block and are no longer identified with block processing

    Unworkable Suspense Inventory Records are not included in the online file and cannot be corrected until they have been activated in overnight batch processing.

    1. The ERS error inventory is equivalent to the error register inventory.

    2. Records are accessed by block DLN and the documents are still in the complete block while being worked.

    3. Each correction is validated and re-displayed immediately, eliminating all loop processing.

    4. The ERS workable suspense inventory corresponds to the inventory of rejects that have been placed in the work area to be corrected.

    5. These records are accessed by complete 14 digit DLNs, as the documents have been pulled from the original block and are no longer identified with block processing.

    6. The ERS unworkable suspense inventory corresponds to the reject items being held in Suspense, pending a reply to correspondence or the return of a document from a campus function.

    7. These records are not included in the online file and cannot be corrected until they have been activated in overnight batch processing.

3.12.38.3.2  (01-01-2014)
General Correction Procedures

  1. Each Error Correction Tax Examiner calls up a block of documents for correction.

    1. The first error document in the block is displayed, with the highest priority error.

    2. When a correction is transmitted for that error, the document is validity checked and the same error or the highest priority remaining error is displayed.

    3. When the document has no errors, the next error document in the block is automatically displayed.

    4. When the last error in the block has been corrected, the screen indicates that the block is completed and the Examiner enters another DLN.

  2. Any document that cannot be corrected is suspended with a three-digit Action Code indicating the reason why the return was unprocessable.

  3. The record is then controlled on the workable or unworkable suspense inventory, depending on the action code.

  4. If a record is corrected in error, use CC GTRECW to retrieve the record at any time on the same day.

  5. TEs should identify error trends and provide the feedback to the appropriate function.

  6. All ERS functions should use the system as designed by the following:

    1. Using all appropriate Control Listings

    2. Working older errors and Workable Suspense cases first

    3. Resolving or suspending all error records within three days

    4. Resolving or suspending all Workable Suspense records within five days

  7. The Entity Assignment Date will be indicated, in the left hand margin on the front of the return, by a capital E and date assigned.

3.12.38.3.2.1  (01-01-2014)
IDRS Command Codes (CC) Used in ERS/Rejects/Suspense

  1. The following table lists the majority of the IDRS and ERS command codes used in the ERS, Rejects and Suspense functions. Many of these command codes can be accessed via the IAT Tool.

    IDRS COMMAND CODE DESCRIPTION
    SINON This command code is used to sign onto the computer.
    • SINON is used by all terminal users, including ERS, GUF and IDRS.

    • To ensure the accuracy of production reports, be sure to enter CC SINON if the system has been down.

    See IRM 2.4.2
    SINOF This command code is used to sign off the computer.
    • SINOF is used by all terminal users, including ERS, GUF and IDRS.

    • You must sign off the computer when leaving the terminal or at the completion of your shift.

    See IRM 2.4.2
    ACTON Shows the Case Control and History. Its used to:
    • Establish control bases

    • Update or close control bases that are open,

    • Correct a name control on dummy accounts,

    • Append history items to modules on IDRS, and

    • Generate TC 902s to secure tax modules and their related entity data from the Master File.

    See IRM 2.3.12
    ACTVT This command code is used to transfer Unworkable Suspense records to the Workable Inventory.
    ADD24/DRT24 This command code is used to transfer payment/credits, except credit elects, between modules on all Master Files.
    See IRM 2.4.17
    ADD34/FRM34 This command code is used to transfer payment/credits, except credit elects, between modules on one Master File (IMF or BMF)
    See IRM 2.4.17
    ADD48/DRT48 This command code is used to transfers credit elects.
    See IRM 2.4.17
    ATINQ This command code is used to research the status of the Adoption Taxpayer Identification Number (ATIN) application (Form W-7A). ATINs are in the same format as an SSN or an ITIN.
    • The ATIN must begin with the digit "9" .

    • The fourth and fifth digit must be "93" .

    • The last four digits must be assigned in ascending sequential order.


    See IRM 2.3.71
    BMFOL This command code is used to research nationwide entity and tax data posted to the Business Master File (BMF)
    See IRM 2.3.59
    BRTVU This command code is used to access the line items transcribed from the BMF returns/forms including accompanying schedules or forms as they were processed at the campuses.
    CFINK This command code is used to research the Centralized Authorization File (CAF) for Power of Attorney (POA).
    See IRM 2.3.31
    CMODE This command code is used to access a database at another campus.
    COMPA This command code is used to manually compute interest and certain penalties (for example, Failure to Pay, Estimated Tax). See IRM 2.3.29
    CRECT This command code is valid after an error has been displayed in response to the use of Command Codes GTREC or GTSEC.
    DLSEC This command code is used to delete a section from the data record.
    DUPOL This command code is used to access the duplicate TIN database and provides duplicate Social Security Number (SSN) data.
    See IRM 2.3.68
    ENMOD This command code is used to request the Entity Module for a specific EIN or SSN.
    See IRM 2.3.15
    ENREQ This command code defaults to INCHG (SSN) or BNCHG (EIN) and is used to request an entity update of the Master File.
    See IRM 2.4.9
    ENREQR This command code defaults to IRCHG (SSN) or BRCHG (EIN) and is used to merge two Master File accounts.
    See IRM 2.4.9
    EREMP This command code is used to change records on the ERS Employee Name and Organization File.
    ERINV This command code is used to research a Document Locator Number (DLN) or Taxpayer Identification Number (TIN) on the ERS Control File.
    ERSSD This command code is used by managers to sort ERS batches. It replaces the IAT ERS Batch Sorter Tool.
    ERUTL This command code is used to display several different areas in the ERS record for research purposes.
    ERVOL This command code is used to obtain the actual count of records in current Workable Inventory or the status of an error record.
    ESTAB This command code is used to request documents from Return Files.
    See IRM 2.3.18,IRM 2.3.56, and IRM 2.3.62
    FFINQ This command code is used to research for a Document Locator Number (DLN) using the SSN.
    See IRM 2.3.13
    FINDE This command code is used to research for the business' name and address information, using the Employer Identification Number (EIN).
    See IRM 2.3.60
    FINDS This command code is used to research for the taxpayers's name and address information, using the Social Security Number (SSN).
    See IRM 2.3.60
    FRM49 This command code is used to input Transaction Code (TC) and Closing Code (cc) to finalize or satisfy the requirements for filing a tax return (for example, TC 599 with CC 18 is used to indicate that the original return posted to the wrong module and will be reprocessed to the correct module).
    See IRM 2.4.26
    GTREC This command code is used to access the following:
    • First error record in an ERS error block, or

    • A specific record in the Workable Suspense Inventory, or

    • Re-display the previous uncorrected error display of a record after performing IDRS operations for the error, or

    • Previous uncorrected error display is desired.

    GTSEC This command code is used to obtain or enter a specific section on an ERS record.
    IMFOL This command code is used to research accounts posted to the Individual Master File (IMF).
    See IRM 2.3.51
    INOLE This command code is used to access the National Account Profile (NAP) which contains selected entity information for all Master File (MF) accounts.
    See IRM 2.3.47
    INTST This command code is used to compute the correct outstanding balance including interest and failure to pay accruals to the date specified in the input.
    See IRM 2.3.29
    IRPTR This command code is used to request either online or hardcopy IRP transcripts from Information Return Master File (IRMF).
    See IRM 2.3.35
    ITDLN/USIGN This command code (ITDLN) defaults to command code USIGN and is used to research for an assigned DLN using a name, date of birth, and zip code.
    LETER This command code is used to initiate taxpayer correspondence.
    See IRM 2.4.6
    LPAGD This command code is used to delete a letter.
    See IRM 2.4.6
    MFREQ This command code is used to request an entity module and/or a tax module from Master File when case control is not required.
    See IRM 2.3.10
    MFTRA This command code is used to request transcripts from a taxpayer's account at Master File.
    See IRM 2.3.32
    NAMEE and NAMEB This command code is used to search for EINs Primary and Doing-Business-AS (DBA) names.
    See IRM 2.3.60
    NAMEI and NAMES This command code is used to search for SSNs for the Primary and Secondary filers.
    See IRM 2.3.60
    NOREF This command code is used to intercept refunds.
    See IRM 2.4.37
    NWDLN This command code is used to assign a new Document Locator Number (DLN) to a record. This action deletes the original record.
    QRSEL This command code is used to select a record which will remain in ERS one day for quality/CARE review and possible correction.
    REINF This command code is used to research IDRS Refund Information File (RFIF).
    See IRM 2.3.13
    REQ54/ADJ54 This command code is used to made data processing (DP) adjustments to tax, penalty and/or interest.
    See IRM 2.4.16
    REQ77/FRM77 This command code is used to input miscellaneous transactions.
    See IRM 2.4.19
    RFUND This command code is used to generate a manual refund to the taxpayer.
    See IRM 2.4.20
    RJECT This command code is used to delete a record from ERS.
    RTFTP This command code is used to sanitize version of CC RTVUE for printing and mailing to the taxpayer.
    RTVUE This command code is used to display the line item transcribed from Form 1040 series and their accompanying schedules and/or forms as the returns are processed at the campuses.
    SCFTR This command code is used to research the Service Center Control File (SCCF) for the status of a block DLN.
    See IRM 2.3.36
    SFDISP This command code is used to view a listing of the command codes in an employee's profile.
    SFINQ This command code is a security command code limited to security representatives.
    SSPND This command code is used with an ERS Action Code to place a record in suspense status.
    STAUP This command code is used to suppress balance due notices generated by IDRS that are normally sent to the taxpayer.
    SUMRY This command code is used to request a summary for an account on IDRS for a particular TIN and File Source.
    See IRM 2.3.11
    TERUP This command code is used to delete erroneous transactions (for example, tax adjustments).
    See IRM 2.4.13
    TRDBV This command code is used to obtain a display of edited transcribed and corrected data from electronically filed returns.
    See IRM 2.3.73
    TRERS This command code is used to link the DLN entered with command code GTREC, with the TRDBV and display the electronic return.
    TRPRT This command code is used to order electronic filed tax returns. IRM 2.3.73
    TXMOD This command code is used to request all tax module information for a specific tax period on the TIF.
    See IRM 2.3.11
    UPCAS This command code is used to add or delete history items posted on the Generalized Unpostable Framework (GUF) data base.
    UPDIS/UPRES This command code is used to correct unpostable cases.
    See IRM 2.3.48
    UPTIN This command code is used to research open and closed cases on the GUF database.
    See IRM 2.3.37
    URINQ This command code is used to research credits in the Unidentified Remittance File (URF)
    See IRM 2.3.20
    XSINQ This command code is used to research credits in the Excess Collection File (XSF).
    See IRM 2.3.45
  2. For further explanations, screen displays, and applicable definer codes, refer to IRM 2.3, IDRS Terminal Response Responses, IRM 2.4, IDRS Terminal Input, and the applicable training series.

3.12.38.3.3  (01-01-2014)
Correspondence

  1. This section of the manual lists the procedures that are to be followed for corresponding with taxpayers and working correspondence received from taxpayers.

  2. Review document prior to issuing correspondence to ensure all needed information is requested the first time. Check BMFOLR to see if a return has posted to the tax period involved. If the money amounts match, it is a duplicate return:

    • Print BMFOLR screen,

    • Highlight DLN of return,

    • Cancel duplicate return's DLN,

    • Attach print to document and route to files.

    If a TC 150 is posted and the money does not match, then CCC G the return. Do not issue correspondence. G coding will route the return to Accounts Management.

  3. If a paper Form 940 or Form 941 return is received with a request to correspond due to a missing page:

    • Check the ERS inventory for the rest of the return, if found perfect the return and follow deletion procedures for the suspended return.

    • If not found, correspond.

  4. If review indicates correspondence is not needed (for example, AC 225 and return contains a signature) "DO NOT" correspond. Information in the section includes the following:

    • EIN change - Issue 3875C letter

    • Use of Fax for taxpayers submission

    • Quick Notes (Form 5260)

    • Correspondence suspense

    • Application for change in accounting period (Form 1128)

    • Second correspondence

    • Correspondence received date

    • Replies to correspondence

    • E-filed return replies to correspondence

    • No reply processing instructions

  5. When corresponding for a missing signature only:

    • Use Action Code 225, for international use AC 226.

    • After the letter is input, notate the input date on the return and continue processing.

    • If the return is a "REFUND" it must be held in suspense.

    • If corresponding for multiple issues including the signature, the return must be held in suspense for the appropriate number of days. SSPND with Action Code 211, for international use Action Code 215.

    • If the return is other than a "REFUND" , it does not have to be held in suspense.

    Note:

    Or follow local procedures

  6. Do not suspend to correspond for a missing signature if:

    • "Substitute for Return Prepared by IRS" (SFR) is noted or "dummy" return, or

    • "Section 6020(b)" or "prompt assessment" is notated or Form 4810 is attached.

    Note:

    You are not required to inspect returns for missing signatures since no Error Code will appear for a missing signature; however, if you are led to the signature area of the return and it is not signed, you will take the appropriate actions.


    Exception:

    When corresponding for other missing information, you are required to correspond for a missing signature.

  7. All non-suspense letters returns will be pulled out of the batch of work and set aside or quality to review prior to the issuance of the correspondence. Annotate on the Form 1332, Batch Header which returns were pulled and what was sent.

  8. If the return has IRS correspondence attached and appears to be a reply, SSPND to Rejects.

3.12.38.3.3.1  (01-01-2014)
EIN Change - Issue 3875C Letter

  1. If there is a change to the EIN, ERS is required to issue the 3875C letter to advise the taxpayer for the EIN change.

  2. Do not send Letter 3875C:

    • If three or less digits of the EIN are transposed, different, or missing;

    • When INOLES indicates the account has been "merged to" or "merged from" , or

    • If the taxpayer's uses their SSN instead of an EIN and research shows there is no valid EIN for that taxpayer.

    .

  3. Refer to specific 3.12 IRMs for instructions.

3.12.38.3.4  (01-01-2014)
Error Resolution System (ERS) Action Codes

  1. This section of the manual provides information about the Action Codes used in the Error Resolution System (ERS).

  2. Information in this section includes the following:

    • General Information

    • Correspondence Action Codes

    • Routing Action Codes

    • Research Action Codes

    • Delete Action Codes

    • Other ERS Action Codes

    • Management Suspense Action Codes

3.12.38.3.4.1  (01-01-2014)
General Information - Action Codes

  1. An ERS Action Code is a three digit numeric code used to indicate the reason for suspending or rejecting a record.

  2. An Action Code is assigned to a record in the following functional areas:

    • Code & Edit

    • ISRP

    • SCRIPS

    • Error Correction

    • Suspense Correction/Rejects

      Note:

      Some Action Codes are computer generated when an unprocessable condition is identified.

3.12.38.3.4.1.1  (01-01-2014)
Correspondence Action Codes

  1. Correspondence can be initiated via Form 3696, (3696 A - Ogden Submission Processing Campus), or by using IDRS directly.

  2. Suspend (SSPND) the record with the appropriate Action Code (21X).

  3. See the specific Sections in IRM 3.11 (RETURNS AND DOCUMENTS ANALYSIS) and IRM 3.12 (ERROR RESOLUTION) for instructions for initiating correspondence.

3.12.38.3.4.1.2  (01-01-2014)
Routing Action Codes

  1. When a document must be referred to another area of the campus before it can be processed, enter CC SSPND with appropriate Action Code and attach Form 4227, Routing Slip or local form, with explanation. Ensure all required research has been completed before suspending to another area.

3.12.38.3.4.1.3  (01-01-2014)
Research Action Codes

  1. After a thorough check of the document and all attachments, research is the first step in resolving items such as:

    • Missing or Invalid TIN

    • Excess Remittance

    • Missing Name and/or Address

  2. Other information that is frequently secured by research includes the following:

    • Correct Tax Period

    • Estimated Tax Payments

    • FTDs

    • Filing Requirements

  3. Attach Form 4227 and note the research to be performed on the document if the Action Code doesn't fully explain.

3.12.38.3.4.1.4  (01-01-2014)
Delete Action Codes

  1. If it is determined that a document should be:

    • Renumbered

    • Re-input

    • Voided

      Caution:

      Never void a return after a manual refund has been issued.

    • Transferred to Non – Master File

    • Territory 15 (International)

    1. Use CC SSPND with Action Code 6XX.

  2. Action must be taken immediately to suppress generation of delinquency notices before suspending a return to be renumbered or re-entered because the MFT or tax period was in error.

  3. If AC 610 or 640 was input in error, then input all fields as needed.

3.12.38.3.4.1.5  (01-01-2014)
Other ERS Action Codes

  1. Action Code 347 is used when an initial Form 1120S, U.S. Income Tax Return for an S Corporation is filed and the Form 2553, Election by a Small Business Corporation is attached. See IRM 3.12.38.2.7.3 for instructions to work these cases.

  2. Action Code 410 must be used with discretion.

  3. If you determine that special expertise is needed to properly resolve the error, enter CC SSPND with Action Code 410.

    • Use only as a last resort or when authorized by your supervisor.

    • Use of this code should be closely monitored by management.

  4. Action Code 470 (complex error code) is to be used by new Tax Examiners in ERS.

    1. Note:

      These cases will be worked by experienced Tax Examiners.

  5. Action Code 480 is used to suspend an early filed return.

    • Action Code 480 is usually used by Code and Edit & ERS Tax Examiners.

    • Verify the input tax period to the return and check posted returns on BMFOLI. Correct the tax period if the input is incorrect. If the return is no longer an early filed return, do not suspend. Release the case to post.

    • Use Action Code 480 to suspend an early filed return, if it is processable.

      Note:

      If the return appears to be incomplete, return to that function for perfection. If any doubt exists, see you manger for final determination.

  6. Action Code 490 is used to suspend a record when the system cannot identify an error.

    1. Note:

      Before assigning Action Code 490, make sure return is for a future period.

  7. Suspend with Action Code 511 when the document for the error displayed is missing from the block during error correction.

3.12.38.3.4.1.6  (01-01-2014)
Management Suspense Action Codes

  1. Management may direct that certain records will be held to await further processing instructions.

  2. Some reasons for suspension are listed below:

    1. A SPC computer program bug exists for a particular type record.

    2. Master File programs are not yet available or are incorrect for a specific type record.

    3. Legal or administrative complications exist which require that this specific type of record should not be processed.

  3. These records will remain in the Unworkable Suspense Inventory until requested to be placed in the Workable Suspense Inventory (via the ERS Control File, or until the Suspense Period expires, whichever is first).

3.12.38.3.5  (01-01-2014)
Types of Error Resolution System (ERS) Errors

  1. This section of the manual lists the procedures that are to be followed when resolving types of error resolution errors.

  2. Information in this section includes the following:

    • Error displays and corrections

    • Error messages

    • ERS record headings

    • Priority errors

3.12.38.3.5.1  (01-01-2014)
Error Displays and Corrections Screen

  1. Each field is identified by an Alpha/Numeric Field Designator displayed before that field.

  2. Negative values will be indicated by a minus sign (−) following the amount.

    • If any amount is negative on a field that can be positive/negative, the minus sign must be entered.

  3. Decimal points are displayed for dollars and cents.

    • The cents digits are not displayed for dollars only fields; two asterisks (**) are displayed in the cents position.

      Note:

      It is not necessary to enter a decimal point when entering an amount.

  4. Corrections are entered starting with the left-most position of the field after the first space.

    • If fewer than the maximum number of positions is required, the program will automatically right justify the digits.

    • If more data is entered, the overflow characters (#) will display on the screen. They are dropped when the field is added to the record.

      Note:

      This is especially important for the TIN, name, and address.

  5. Corrections can be made to a displayed field by overlaying only the digit(s) in error and not re-entering the entire field.

  6. When transmitting corrections to a screen display, move cursor below the last field containing data before transmitting.

3.12.38.3.5.1.1  (01-01-2014)
ERS — Record Heading Screen

  1. Every error display will show the following data as part of the standard display heading:

    • Document Locator Number (DLN)

    • Employer Identification Number

    • Name Control/Check Digit

    • Current Processing Date

    • Residual Remittance Processing System (RRPS) Indicator

    • Error Resolution System (ERS) Status Code

    • Taxpayer Notice Code (TPNC)

  2. All TPNCs assigned to a record to clear a Math Error will be displayed on the third line of all subsequent displays for the record.

    • A maximum of three codes for BMF will be displayed.

    • This field is not correctable directly but the TPNC can be deleted by creating a higher priority error.

  3. Compare the header information to the source document.

    • If a mixed data situation exists (information from two taxpayers' returns appears on the error record under the same DLN or the DLN does not match the return on the screen display), stop processing.

    • Give the block of work to your supervisor. Management will make the determination if the mixed data can be corrected via the terminal screen displays or have the block deleted and re-input.

3.12.38.3.5.1.2  (01-01-2014)
ERS–Error Messages

  1. "ERROR BLOCK COMPLETED" displays after the last error record in a block is worked.

  2. "SUSPENSE RECORD COMPLETED" displays after a suspense record is worked or resuspended.

  3. "DLN NOT IN ERS" displays when CC GTRECW is entered with a DLN (14 digits with hyphens) that is not in ERS.

  4. "DLN HAS NOT BEEN WORKED" displays when CC GTRECW is entered with a DLN (14 digits with hyphens) that has not been worked.

  5. "DLN NOT IN ERROR INVENTORY" displays when CC GTREC is entered with a DLN that is not in the error inventory.

  6. "DLN NOT IN WORKABLE SUSPENSE INVENTORY" displays when CC GTREC is entered with a DLN (14 digits with hyphens) that is not in workable suspense inventory.

  7. "INVALID COMMAND" displays when any of the following conditions are present:

    1. CC GTREC or ERINV is entered without a complete DLN (14 digits or 12 digits "XX" for serial number with hyphens).

    2. CC ACTVT is entered without a complete DLN (14 digits with hyphens).

    3. CC GTSEC or DLSEC entered without a valid section number (two digits).

    4. CC SSPND, NWDLN or RJECT is entered without a valid action code (three digits).

    5. CC NWDLN is entered with an invalid DLN.

    6. CC ERINV is entered without a 9 digit TIN or a hyphen ( XX-XXXXXXX).

  8. "REQUIRED SECTION" displays when CC DLSEC is entered attempting to delete a required section or if the section contains the remittance (payment) field.

  9. "INVALID SECTION" displays when CC GTSEC or DLSEC is entered with an invalid section.

  10. "INITIALIZATION INVALID-ENTER DLN" displays when CC GTREC is entered without a DLN.

    Exception:

    CC GTREC can be entered without a DLN when an error record (previously accessed) has been interrupted (for example, IDRS research).

  11. "INITIALIZATION INVALID" displays when any CC SSPND, NWDLN, or RJECT is entered without an Action Code.

  12. "INVALID PARAMETER" displays when CC ERVOL is entered without a valid status code.

  13. "INVALID STATUS CODE" displays when CC ERVOL is entered with an invalid status code.

  14. "UNRECOGNIZABLE FIELD ERROR" displays when a field, containing invalid data cannot be displayed.

    Note:

    The supervisor should use CC ERUTL to identify the invalid field.

  15. "NO ERROR IN RECORD-CONTACT SUPERVISOR" displays when GTSEC with a definer is used and there is no error set.

  16. "TRANSFERRED" displays when CC ACTVT is entered with a complete 14 digit DLN (include hyphens) to transfer a record from Unworkable Suspense Inventory to Workable Suspense Inventory.

  17. "IN WORKABLE SUSPENSE" displays when CC ACTVT is entered with a complete 14 digit DLN (include hyphens) and the record is already in Workable Suspense Inventory.

  18. "IN ERROR INVENTORY" displays when CC ACTVT is entered with a complete 14 digit DLN (include hyphens) and the record is already in Error Inventory.

3.12.38.3.5.2  (01-01-2014)
Priority I Errors—Action Code/Unpostable Code

  1. All records with an invalid Action Code assigned by Code & Edit or Action Code 001 will be placed in the Error Inventory and displayed as a Priority I Error.

  2. Records with a valid Action Code, assigned by Unpostables or computer generated Action Codes, will be assigned to a Suspense Inventory and will be displayed as a Priority I Error.

3.12.38.3.5.2.1  (01-01-2014)
Display — Action Code

  1. The Action Code for the record with the literal description of the action or unpostable condition will be shown.

3.12.38.3.5.2.2  (01-01-2014)
Error Correction — Action Code

  1. If suspense action is required, enter CC SSPND with the correct Action Code, then transmit.

  2. If no suspense action is required, enter "C" in the Clear Code Field (CL), and transmit.

  3. If Action Code 001 displays, this record must be entered by Error Resolution.

    1. Enter CC GTSEC for each record section that should contain data. Add the required data.

    2. After all of the sections have been entered, enter "C" in the Clear Code Field, and the record will be subjected to normal validity checks.

    Note:

    This condition occurs whenever the BOB Resolution function has added a document to a block by entering only the name control and TIN.

3.12.38.3.5.3  (01-01-2014)
Priority II Errors—Section Errors

  1. Most edit, missing section, and terminus errors should be eliminated by the Integrated System Remittance Processing (ISRP).

  2. The following conditions may be present if normal ISRP validity checks have been bypassed:

    • Edit errors

    • Missing required section or questionable section

    • Terminus errors

  3. All transcribed fields, except the ERS Action Code and the Remittance (Payment Received), will be displayed in columnar format with or without data. The error type will also be indicated for ISRP Problem Code errors. Only one section (error) will be displayed at a time.

  4. Any individual section excluding computer generated fields and the Action Code will be present. (The Action Code is an uncorrectable field except as defined for CC SSPND and RJECT.)

3.12.38.3.5.3.1  (01-01-2014)
Edit Error

  1. "Edit error" indicates a section with an error detected by the Distributed Input System.

    • Literal = DDES "1" - Split screen transmission. Key Verifier attempted to change the Check Digit, Key Verifier changed four or more digits of the Primary TIN, or the Original Entry Operator indicated that a required section was missing.

    • Literal = DDES "3" - Invalid section ending point.

    • Literal = DDES "4" - Invalid field length.

    • Literal = DDES "5" - "Questionable Section" (A section was entered twice or entered out of sequence by ISRP).

  2. All fields of the section must be examined when this condition exists.

  3. If Section 01 of a return is coded, examine the tax base data section (via CC GTSEC) for an error to ensure that the return is for the taxpayer whose name is in Section 01.

    • Correct the section.

    • Once the section is correct or if no corrections are necessary, transmit.

3.12.38.3.5.3.2  (01-01-2014)
Missing Required Section and Questionable Section

  1. "Missing required section" indicates a missing section determined to be required, but missing.

  2. To correct the "missing required section" condition, enter the data for the missing section.

    1. If no data is present for the missing section, see appropriate IRM for initiating research or correspondence.

    2. After initiating research or correspondence, suspend (SSPND) the record with the appropriate Action Code.

    3. If data is present for the missing section, enter the data for the section. After entering all the data for the section, transmit.

  3. Take the following actions to correct a "questionable section" :

    1. Verify and enter all of the data for the displayed sections.

    2. Transmit when all the data is correct.

3.12.38.3.5.3.3  (01-01-2014)
Terminus Error

  1. "Terminus Error" indicates a section with variable length fields containing an erroneous size field or otherwise being of erroneous size.

  2. All fields of the section must be examined when this condition exists.

    1. Make the necessary corrections to the record.

    2. Once the section is correct, or if no corrections are necessary, transmit.

3.12.38.3.5.4  (01-01-2014)
Priority III Errors—Field Errors Screen

  1. Definition—Any field failing to meet the requirement(s) for that field (and that field only) will be shown as a Priority III Error.

    • Consistency and/or relationships with other fields will not be a factor.

  2. Individual field validity errors to be bypassed after initial consideration will be shown as Priority IV Errors. Some reasons for field errors include:

    • Non-numeric character in a numeric field

    • Non-alphabetic character in an alpha field

    • Blank space in a number field

    • Blank in the first position of an alpha field

  3. Display—All fields with a Priority III Error will be displayed in the order encountered in the record.

  4. The Action Code and TPNCs will never be displayed as a Priority III Error.

  5. An overflow field is identified by all question marks for a money field or a single pound sign in the last position of a name line.

  6. Correction:

    1. Every field displayed is in error. See the appropriate section of IRM 3.12, Error Resolution, for the specific document.

    2. Check the information on the source document to determine if each displayed field has been correctly edited and transcribed.

    3. Enter the correct data for each field displayed.

    4. If no data is to be in a displayed field, blank the field.

    5. Correct each field displayed.

    6. Transmit.

    Note:

    If "Unrecognizable Field Error" SSPND 490.

3.12.38.3.5.5  (01-01-2014)
Priority IV Errors—Math/Consistency Errors Screen

  1. Any valid field used in any computation in which the result is inconsistent with or contradictory to any other valid field or fields will have Error Code 001–999 assigned to it by the computer shown as Priority IV Error.

  2. Using valid fields, if the result of the computer computation of an amount differs from that which is contained in the record, the computation fields will be shown as a Priority IV Error.

3.12.38.3.5.5.1  (01-01-2014)
Display

  1. Priority IV errors will be displayed with the Error Code for the specific error determined by each return program.

  2. The screen display will show the error code assigned and the fields needed to make the necessary correction.

    • The first correction that must be made for each generated Error Code is to compare the displayed fields with the return.

    • If edited or transcribed incorrectly, follow Form specific instructions in the 3.12 IRMs SC Error Resolution.

  3. For all math error codes, a field labeled "NC" followed by XX will generate.

    • BMF can generate maximum of 3 TPNCs; the third TPNC must be TPNC 90.

    • Each math error code will have limited TPNCs which will be valid.

    • If an invalid TPNC is entered, the same math error code will re-display.

    • The entry of a "TPNC" in the Taxpayer Notice Code Field will prevent any other correction on the same screen display.

  4. Previously assigned TPNC(s) will be displayed on line 3 preceded by literal "NC" .

  5. If determined that the generated math error code was the direct result of a previous error (resolved by a TPNC), Any previously assigned TPNC may be entered.

    1. Note:

      It is important that the taxpayer be advised of all errors that are present on the return. Precaution should be used when entering any previously assigned TPNC.

  6. A field labeled "CL" will be displayed for the entry of a Clear Code on records where the possibility exists that a change or correction may not be needed. Clear codes are only available on error codes that do not accept TPNC(s).

    • This field is located on line 4 to the right of CRECT.

    • All coding and transcription errors displayed must be corrected and IRM procedures for each field shown on the screen display MUST be applied before entering a "C" in the Clear Code Field.

    • The entry of a C in the Clear Code Field will prevent any other correction on the same screen display.


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