This Section provides instructions for correcting error and reject registers for estate, gift, and generation-skipping tax returns. Records appear on registers because of validity, consistency, math, and/or input errors.

These are instructions used for correcting paper registers of the following Business Master File (BMF) returns:

If general and specific instructions conflict, always follow specific instructions.

It may be necessary to refer at times to instructions in the following IRMs:

Refer to IRM 3.12.263, Error Resolution - Estate and Gift Tax Returns - Error Resolution System (ERS) Corrections, for correction information regarding the following forms:

Instructions provided in the following are to be used in conjunction with the IRM:

The Customer Account Data Engine (CADE) 2 Program Office in Headquarters is charged with the primary goal to implement a single, modernized programming solution which provides daily processing of taxpayer accounts.

The CADE 2 solution is comprised of several components, to modernize the IRS to a daily processing environment with several Transition States.

Accelerated IMF – All Individual taxpayers account transactions being processed weekly by IMF (on Thursday) with new cycle definitions and accelerated refund and notice issuance. The new cycles are:

IMF transactions posting timeframes are outlined as follows:

BMF transaction posting timeframes are outlined as follows:

IMF transaction posting dates will reflect a format of "YYYYCCDD" . "YYYY" will indicate the year. "CC" will indicate the posting cycle. For IMF transactions, the following values for "DD" are defined:

Abbreviations listed below are used to process gift and generation-skipping tax returns:

Error Register—When the computer finds an error (consistency, math verification or validity) in the data input for a return, it generates an error register. It is a printed document which shows sections and fields corresponding to the information entered into the computer.

Section—A portion of the return. Each section is numbered with a two-digit code beginning with 01.

Field—An item in a section on the return, usually a line on the return.

Alpha Field Designator—The first field of each section is designated the "A" field. Subsequent fields are designated "B" , "C" , "D" , etc.

Field Breakers—A symbol that shows the end of a field. By itself, it means there was no data entered into that field.

Document Locator Number—A Document Locator Number (DLN) is given to each document processed in the ADP System and is used to find the document. We distinguish between different types of returns by giving them specific tax classes and document codes.

An action code tells the computer what to do next. Every correction made on the error register has a corresponding Action Code edited to the left of a particular section that needs to be corrected. Action Codes 0, 1, 3 and 7 may not be used at the same time as any other action code.

Enter Action Codes (ACs) 0, 1, 2, 3 and 7 on the register to the left of Section 01. See Figure 3.12.106–1.

Figure 3.12.106-1

Enter Action Codes 4, 5, and 6 to the left of the appropriate section number. See Figure 3.12.106–2.

Figure 3.12.106-2

Error Resolution tax examiners make corrections on the returns and registers. Make certain all entries are legible.

Returns Secured or Prepared by Examination Division. To audit a taxpayer who has not filed an original return, Examination Division occasionally prepares returns or secures an unsigned copy from the taxpayer. The return is submitted for computer processing as an original. It will precede an AIMS adjustment to the BMF. It is marked SUBSTITUTE or COPY SECURED BY EXAMINATION DIVISION and may have audit papers attached. Forms you may see attached are: Forms 3198, 6459, 5255, and 3232 or 3233.

There are three general types of errors that will cause a record to print on the error register:

This sub-section defines re-entry documents and provides instructions for their control and processing.

Code "AA" will print to the right of the batch number on the loop register when the computer indicates an invalid correction attempt.

A statute control document is a document filed for a barred period. A barred period is a taxable period on which statutory limitations are placed for allowing refunds, credits, or for assessing additional taxes. Generally, a claim for refund must be filed or additional tax assessments must be made not later than three years from the date the original return was filed or two years from the date the tax was paid.

Treat all statute control documents as unprocessable.

Figure 3.12.106-7

Enter Computer Condition Code (CCC) "W" if the return is stamped "Cleared by Statute" , so checks will not be made on returns already cleared.

If it appears that a rejected document will not reach the Statute Control Unit in time for clearance, photocopy page one of the return, stamp photocopy "Photocopy—Do Not Process" , and expedite, forwarding to the Statute Control Unit using local procedures.

If the document was received timely, and the return is being processed within 34 months of the due date of the original return, delete CCC "W" whether or not Statute Control has cleared the document.

To keep the amount owed the IRS down, we must minimize the number of unresolved large dollar debit and credit modules/issues in inventory. Therefore, consistent with prevailing guidelines and other processing timeliness requirements (i.e. first-in, first-out), resolve all modules/issues with balances of $25,000 or more ASAP.

Each region annually identifies complex Business Master File (BMF) entities such as large dollar accounts, federal agencies, or entities which have a history of complex issues. A "Large Complex Corporation" indicator will be set on BMF to alert the Submission Processing Centers when a notice has been generated on these accounts. This replaces the previous "L" Coded Corporate Processing activity.

A "Large Corp CD" indicator will appear on IDRS, and all applicable Master File transcripts, under ENMOD and TXMOD. The CD field will be overlaid by the campus (Submission Processing Center) location code (i.e., LARGE CORP 17). These notices will be routed to the Technical Unit (or designated function) for review before being sent to the taxpayer. When this indicator is identified, employees should coordinate their case with the Technical Unit (or designated function) prior to taking action. IRM 1.10.1, The Internal Revenue Service Correspondence Manual, has procedures for the research and resolution of "Large Complex Corporation" cases.

The Service is also monitoring large dollar cases identified on the Accounts Receivable "Large Dollar Trend Record" (LDTR) report. Cases listed on the LDTR report may include the Large Complex Corporation code, so the region may contact the Technical Unit (or designated function) to determine the current status of the account/module.

You can research Master File accounts and return data with Individual Master File On-Line (IMFOL) and Return View (RTVUE).

Since Master File does not carry all information available on the IDRS screen displays (IDRS notice status, case control information, pending transactions, etc.), you must research IDRS before IMFOL or RTVUE. Also, if you cannot use IMFOL or RTVUE, then use IDRS input command codes that will cause a change to Master File.

Use these command codes to research entity and/or tax data which may not be available on IDRS. Since you will usually get a response in five seconds or less, you may want to use these command codes rather than make MFTRA/ESTAB requests.

IMFOL provides screen displays from IMF data based on an input definer code. For more information on screen displays and applicable definer codes, see IRM 2.3, IDRS Terminal Responses, and the 2545 training series.

RTVUE gets data from the Return Transaction File (RTF). It will give you all edited, transcribed, and error corrected data from data entry lines of Form 1040 series returns and related forms and schedules filed in the current processing year (PY) including late filed returns and two prior years. RTVUE needs a definer to get a particular screen and has a summary screen for each return.

Forms listed below are used or referred to in estate, gift, and generation-skipping tax return processing:

The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Error Resolution System (ERS) processing IRMs.

Topics for the BMF Consistency have been identified and developed as a coordinated effort between Cincinnati, Ogden and Paper Processing Branch BMF Code & Edit/ERS Section.

BMF Consistency subsections are identified by a ♦ (diamond) before and after the title.

Text in normal print is the common processes for BMF returns. The text in BOLD print is form specific and applies to this IRM only.

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. TAS criteria include economic burden, system burden, best interest of the taxpayer, and public policy (as determined solely by the National Taxpayer Advocate (NTA). TAS is responsible for assisting taxpayers who have unresolved problems with the IRS. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, if additional information is required.

Employees should not view TAS Case Criteria as a means of excluding taxpayers from TAS, but rather, as a guide to TAS case acceptance. The criteria under which TAS accepts a case should not govern whether a taxpayer is entitled to relief.

If the IRS employee can resolve a taxpayer's inquiry or provide the relief requested, as outlined in IRM 13.1.7.4, Same Day Resolution by Operations , a referral to a TAS office is not necessary even if TAS case criteria are met. The definition of same day resolution is "within 24 hours." However, cases where the employee cannot completely resolve the issue within 24 hours, but has taken steps within 24 hours to resolve the taxpayer's issue, also meet the definition of same day. Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS.

An IRS employee should make a referral to a TAS office if the employee receives a taxpayer contact, it meets TAS criteria, and cannot initiate action to resolve the inquiry or provide the relief requested. A taxpayer does not have to specifically request TAS assistance to be referred to TAS. IRS employees will advise taxpayers of the option to seek TAS assistance when appropriate. TAS will request documentation from the taxpayer if it is needed to support the requested relief, or required by the IRM.

The following types of cases should NOT be referred to TAS:

TAS Case Acceptance Criteria:

This sub-section provides guidelines for employees to following when communicating with taxpayers and/or their representation on tax-related matters.

Section 01 alpha designators, field lengths and titles are listed below. Section 01 are fixed length fields.