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Part 3. Submission Processing

Chapter 12. Error Resolution

Section 213. Form 1066, U.S. REMIC Income Tax Return (Cont. 1)

3.12.213  Form 1066, U.S. REMIC Income Tax Return (Cont. 1)

3.12.213.3 
Section 01 - Correction Procedures General Information

3.12.213.3.11  (01-01-2009)
CAF Indicator - 01CAF

  1. The CAF Indicator is no longer edited.

  2. Form 2848, Power or Attorney (POA) and Form 8821, Tax Information Authorization (TIA), are processed per the following:

    If... Then...
    Form 2848 or Form 8821 is attached, 1. Detach Form 2848 or 8821 from the return.
    2. Edit taxpayer name and EIN on Form 2848 or 8821, if missing.
    3. Edit received date on Form 2848 or 8821.
    4. Route Form 2848 or 8821 to CAF function.
    5. Edit action trail on tax return and continue processing.
    "General Power of Attorney" or " Durable Power of Attorney" or "Tax Information Authorization" is submitted on any document other than Form 2848 or Form 8821, No action is necessary.

  3. Invalid Condition - Although the program recognizes an entry of 1, 2, 3, 4, 7, or blank as valid, Field 01CAF should be blank.

  4. Correction Procedure - Delete Field 01CAF if present.

3.12.213.3.11.1  (01-01-2009)
Correction Procedures

  1. Delete Field 01CAF, if present.

3.12.213.3.12  (01-01-2009)
Audit Code - 01ADC

  1. The valid entries are blank, 1, 2, 3, 4, 5 and 6.

  2. Enter Audit Code "1" if any of the following conditions exist:

    1. Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR), is attached, or

    2. Form 8275, Disclosure Statement, is attached, or

    3. Form 8275-R, Regulation Disclosure Statement, is attached.

  3. Enter Audit Code "2" if any of the following conditions exist:

    1. Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation is attached; or

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

    3. Form 5713, International Boycott Report, is attached; or

    4. The taxpayer answered "Yes" to the foreign trust question, "I" , Page 4, Additional Information.

  4. Although Audit Codes 3, 4, 5 and 6 are also valid for this field, no uses for these codes have been identified in Form 1066 processing.

3.12.213.3.13  (01-01-2009)
Installment Sale Indicator - 01ISI

  1. The valid codes are blank, 1, 2, and 3.

  2. The Installment Sale Indicator is coded from the partnership's response to Form 6252, Question 3, as follows:

    Code One Form 6252 Multiple Forms 6252
    1 "Yes" response to Question 3. At least one form has a "Yes" response.
    2 "No" response to Question 3. All "No" responses, or a combination of "No" and blank responses.
    3 "Yes" and "No" are checked or Question 3 is blank. Question 3 is blank on all forms.

3.12.213.3.13.1  (01-01-2009)
Correction Procedures

  1. Correction procedures for Field 01ISI, Installment Sale Indicator.

    If... Then...
    The correct code needs to be determined, 1. Examine the return and attachments.
    2. Delete the incorrect entry and enter the correct code on the screen and in the left margin of the Deductions section preceded by 9-.
    A code should not be present, Blank the entry on the screen.
    Multiple Forms 6252 are attached and at least one form has a positive response, Use code "1."
    Multiple Forms 6252 are attached; at least one has a negative response and the others are blank, Use code "2."
    Multiple Forms 6252 are attached but Question 3 is blank on all forms, Use code "3."

3.12.213.3.14  (01-01-2009)
Paid Preparer Checkbox - 01CBI

  1. The Paid Preparer Checkbox is located beside the taxpayer signature area. It indicates whether the taxpayer has elected, or not elected, to allow the paid preparer to represent him/her in order to reach settlement of the return tax period. Code and Edit is instructed not to code amended returns (e.g., returns indicating "Amended" , "Superseding" , "Corrected" , etc.) with an indicator.

  2. If the taxpayer checks only the "Yes" box, Code and Edit should indicate a "1" in the right margin beside the Paid Preparer Checkbox.

  3. There are validity checks on the field.

  4. Invalid Condition: If the value is other than "1" or blank.

3.12.213.3.14.1  (01-01-2009)
Correction Procedures

  1. If invalid, delete the field 01CBI and continue processing.

3.12.213.3.15  (01-01-2010)
Paid Preparer Social Security Number (SSN) or Practitioner Tax Identification Number (PTIN) - 01PSN

  1. Transcribed from the bottom of Page 1, Form 1066.

  2. Valid characters are all blank, all numeric, or a "P" in the first position followed by eight numeric characters (a PTIN). If the field is all numeric, it must have nine positions and cannot be all zeroes or all nines.

    Note:

    The range for a valid PTIN is P00000001 through P99999998. A "P" followed by all zeroes or all nines is not valid.

3.12.213.3.15.1  (01-01-2009)
Correction Procedures

  1. Check for coding and transcription errors and correct accordingly.

3.12.213.3.16  (01-01-2009)
Paid Preparer EIN - 01PEN

  1. The Paid Preparer EIN is transcribed from the bottom of Page 1, Form 1066.

  2. This field can be all blank or all numeric.

  3. The field is invalid if it is all nines, all zeroes or less than 9 positions.

3.12.213.3.16.1  (01-01-2009)
Correction Procedures

  1. Check for coding and transcription errors and correct accordingly.

3.12.213.3.17  (01-01-2009)
Paid Preparer Phone Number - 01PTN

  1. If the taxpayer checks only the "Yes" box, then a telephone number for the paid preparer should also be entered to allow contact. However, this field is not required and may be left blank.

  2. There are validity checks on the field, but the field is not correctable. Valid characters are any combination of alpha (A to Z), numeric (0 to 9), or both, characters.

  3. Invalid Condition: If any of the characters are not alpha or numeric.

3.12.213.3.17.1  (01-01-2009)
Correction Procedures

  1. If invalid, delete the field 01PTN and continue processing.

3.12.213.4  (01-01-2009)
Section 02 Correction Procedures

  1. The following information pertains to Section 02 correction procedures.

3.12.213.4.1  (01-01-2009)
Address Data

  1. Section 02 contains the address changes for a return.

  2. The field designator, title, maximum field length, and the location where the entry can be found are listed below:

    Field Designator Title Maximum Field Length Location
    02CON (In-)Care-Of Name 35 Entity area, Page 1, Name line
    02FAD Foreign Address 35 Entity area, Page 1, Address line
    02ADD Street Address 35 Entity area, Page 1, Address line
    02CTY City 22 Entity area, Page 1, City, State, ZIP Code line
    02ST State 2 Entity area, Page 1, City, State, ZIP Code line
    02ZIP ZIP Code 12 Entity area, Page 1, City, State, ZIP Code line

3.12.213.4.2  (01-01-2010)
Address Changes

  1. Section 02 should be present if:

    1. A return has an address change or the change of address box is checked on Page 1.

    2. Section 02 cannot be present on a "G" coded return.

  2. 02ADD - Street Address (35 character entry).

    1. This entry may be blank or contain alpha and numeric characters, hyphen (-), or slash (/).

    2. If the first position is blank, all positions must be blank.

    3. There cannot be two consecutive blanks within significant data.

  3. 02FAD - Foreign Street Address.

    1. This entry may be blank or contain alpha and numeric characters, hyphen (-), or slash (/).

    2. If the first position is blank, all positions must be blank.

    3. There cannot be two consecutive blanks within significant data.

  4. 02CTY - City (22 character entry).

    1. The first position of this entry cannot be blank.

    2. The second and third position cannot both be blank (this allows for the Major City Code).

    3. There cannot be two consecutive blanks within significant data.

    4. This entry can contain alpha and numeric characters, hyphens (-), and blanks.

    5. Determine whether a Major City Code was used.

  5. 02ST - State (2 character entry). (See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries for the valid state abbreviations.)

  6. 02ZIP - ZIP Code (12 character entry).

    1. This entry must be five (5), nine (9), or twelve (12) numerics.

    2. If a valid ZIP Code is not available from the return, perfect the ZIP Code using the chart in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

3.12.213.4.3  (01-01-2010)
Correction Procedures

  1. Check for transcription errors. If it is transcribed incorrectly, enter the actual city and state data.

  2. The Ogden Submission Processing Campus (OSPC) will process any return that has an international address. Suspend processing of Form 1066 with Action Code 650; attach to Form 4227 for routing to OSPC.

  3. The Postal Service established new address requirements for Army Post Office (APO)/Diplomatic Post Office (DPO)/Fleet Post Office (FPO) addresses. If the old address appears (e.g., APO New York, NY 091XX) it must be converted to the new State Code abbreviation based on the ZIP Code (e.g., the previous example would be converted to APO AE 091XX).

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

3.12.213.4.4  (01-01-2010)
♦Field 02CON - "In-Care-of" Name (XREF EC 002, 014, 016)♦

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

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

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

    • The first position is blank, or

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

    • There are two consecutive blanks between significant characters.

  4. Correction Procedures:

    1. Check for coding and transcription errors.

    If... Then...
    A % (percent) is in the first position, 1. Verify there is a blank in the second position.
    2. If not blank, enter a blank followed by the "in-care-of" name beginning with an alpha or numeric in Field 02CON.
    A blank is in the first position, 1. Delete blank.
    2. Enter the "in-care-of" name beginning with an alpha or numeric in Field 02CON.
    The first character of the "in-care-of " name is not 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 02CON.
    Two consecutive blanks are present between significant characters, Delete any unnecessary blanks in Field 02CON.

3.12.213.4.5  (01-01-2010)
Field 02FAD - Foreign Address (XREF EC 002, 014, 016)

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

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

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

  2. Valid Characters: Valid characters are alpha, numeric, and special characters.

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

    • The first position is blank.

    • Any character follows two consecutive blanks.

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

      Note:

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

    .

3.12.213.4.5.1  (01-01-2010)
Correction Procedures

  1. Correct all coding and transcription errors.

    If . . . Then . . .
    Field 02FAD is present, 1. GTSEC 02
    2. Ensure Field 02CTY contains a foreign country code and Field 02ST (State) contains a "." (period/space). See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

    Exception:

    Use the country code based on the province in Field 02CTY if the foreign address is from Canada and the address contains a province name or abbreviation. See Exhibit 3.12.213-4

    A province abbreviation is not present for Australia, Brazil, Canada, Cuba, Italy, Mexico or The Netherlands but a province name is present, 1. Enter the province abbreviation in the appropriate position in Field 02FAD. See Exhibit 3.12.213-5.
    A foreign address is not present on the return, 1. SSPND 610.
    2. Renumber return to domestic DLN.

  2. If Form 8822 (Change of Address) is attached to the return, compare the name and address information on the Form 8822 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 in Field 02FAD.
    2. Notate "8822 detached" on tax return.
    3. Detach Form 8822 and route to Entity Control on Form 4227 or follow local procedures.
    4. Notate on Form 4227, "CHANGE OF ADDRESS PER FORM 8822" .

    Note:

    The lead tax examiner is required to batch all Forms 8822 daily and hand carry them to Entity Control for expedite processing.

3.12.213.4.6  (01-01-2009)
Field 02ADD - Street Address (XREF EC 002, 014, 016)

  1. This field is transcribed from the Street Address line of the entity portion of the return.

  2. Invalid Condition - Field 02ADD is invalid if:

    1. Street Address is present and the first position is blank,

    2. A character other than alpha, numeric, blank, dash or slash is present,

    3. Any character follows two consecutive blanks, or

    4. There are more than 35 characters in this field.

      Note:

      ISRP will input a pound (#) sign as the 35th character to indicate an overflow condition.

  3. Correction Procedures:

    1. Correct any coding and transcription errors.

    2. If the 35th character is a pound sign (#), refer to Document 7475, State Abbreviations, Major City Codes and Address Abbreviations. Abbreviate the address to 35 or fewer characters.

    3. If unable to correct, DLSEC 02.

3.12.213.4.7  (01-01-2009)
Field 02CTY - City (XREF EC 002, 014, 016)

  1. This field is transcribed from the City, State, ZIP line of the entity portion, on page 1 of the return.

    1. Certain cities are designated "Major Cities" and have been assigned a designator that consists of two alpha characters. This code represents both the city and state.

    2. Whenever the city is on the Major City list, ISRP will enter the Major City Code instead of entering the entire name of the city and the state.

    3. When a Major City Code is used, it will be the first two positions of Field 02CTY.

  2. Invalid Condition - Field 02CTY is invalid if:

    1. City is present and the first position is blank

    2. Any character other than alpha or blank is present

    3. Any character follows two consecutive blanks

    4. A Major City Code is present and it is not a valid Major City Code

    5. Invalid Foreign Country Code is present.

  3. Correction Procedures:

    1. Correct any coding and transcription errors.

    2. If a valid city is not available from the return or envelope, take any of the following steps:

      • Research using INOLES and/or ENMOD to determine city,

      • Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, and determine Major City Code, or

      • Follow local Submission Processing procedures.

        Note:

        If a Major City Code is found, GTSEC 02. Enter the code in Field 02CTY and delete Field 02ST.

    3. If unable to correct, DLSEC 02.

3.12.213.4.8  (01-01-2009)
Field 02ST - State (XREF EC 002, 014, 016)

  1. This field is transcribed from the City, State, ZIP Code line of the entity portion of the return.

  2. If the address is a foreign address, defined as not within the 50 states or the District of Columbia, SSPND with Action Code "650" and attach a Form 4227 with a notation to forward to the Ogden Submission Processing Center (OSPC).

    Note:

    An APO, DPO or FPO address is not considered a foreign address, but an address in an American possession.

  3. Invalid Condition - Field 02ST is invalid if the entry is not a state code that is listed in the State Code Table in Document 7475.

  4. Correction Procedures:

    1. Correct any coding and transcription errors.

    2. If a valid State Code is not available from the return or envelope, take any of the following steps:

      • Research using INOLES and/or ENMOD to determine state,

      • Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, and determine Major City Code, or

      • Follow local Submission Processing procedures.

        Note:

        If a Major City Code is found, GTSEC 02. Enter the code in Field 02CTY and delete Field 02ST.

    3. If unable to correct, DLSEC 02.

3.12.213.4.9  (01-01-2010)
Field 02ZIP - ZIP Code (Xref EC 002, 014, 016)

  1. This field is transcribed from the City, State, ZIP Code line of the entity portion of the return.

  2. Invalid Condition - Field 02ZIP is invalid if:

    • ZIP Code is present and the first 5 positions are not numeric,

    • The last 4 positions are not all numeric or all blank, or

    • Positions 4 and 5 are "00"

      Exception:

      ZIP Code 20500

  3. Correction Procedures:

    1. Correct any coding and transcription errors.

    2. If a valid ZIP Code is not available from the return or envelope, research using any of the following to determine the ZIP Code:

      • INOLES and/or ENMOD,

      • Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, or

3.12.213.5  (01-01-2009)
Money Amounts General Information

  1. Sections 03 through 08 contain money amounts. The entries are of variable length. Only sections 01, 02, 03, 07 and 20 are being transcribed by ISRP.

3.12.213.5.1  (01-01-2009)
Section 03

  1. Listed below are the entries displayed in Section 03 of Form 1066.

  2. Correct as required.

    Field Designator Field
    Title     		Max Char $/c Field Type Location
    03TAS Total Assets 13 $ (+ −) Page 1, Box C
    03STG Net Short Term Capital Gain/Loss 11 $ (+ −) Lower right margin preceded by 11-
    03LTG Net Long Term Capital Gain/Loss 11 $ (+ −) Lower right margin preceded by 12-

3.12.213.5.2  (01-01-2009)
Section 04

  1. THE TRIDOC FOR SECTION 04 IS RESERVED.

3.12.213.5.3  (01-01-2009)
Section 05

  1. THE TRIDOC FOR SECTION 05 IS RESERVED.

3.12.213.5.4  (01-01-2009)
Section 06

  1. THE TRIDOC FOR SECTION 06 IS RESERVED.

3.12.213.5.5  (01-01-2009)
Section 07

  1. Listed below are the entries displayed in Section 07 of Form 1066.

  2. Correct as required.

    Field Designator Title Max Char $/c Field Type Location
    0704 Net Income from Prohibited Transactions 13 $/c (+) Page 3 Schedule J. Part 1, Line 4.
    >>>> Net Income from Prohibited Transactions Computer        
    0705A Tax on Net Income (Total Tax ) 13 $/c (+) Page 1, Section II, Line 1.
    0706 Tax Paid, Form on Form 7004) 13 $/c (+) Page 1, Section II, Line 2.
    07TTE Telephone Excise Tax Return 15 $/c (+) Page 1, Section II, dotted portion to the left of Line 4.
    07TRV Telephone Excise Tax Return (Verified Field) 15 $/c (+) >>>>
    07B/R Balance Due/Overpayment 13 $/c (+ -) Page 1, Section II, Line 3/4.

    Note:

    07B/R is an ERS input only field.

3.12.213.5.6  (01-01-2009)
Section 08

  1. THE TRIDOC FOR SECTION 08 IS RESERVED.

3.12.213.5.7  (01-01-2009)
Section 20 (Form 8913, Credit for Federal Telephone Excise Tax Paid)

  1. Listed below are the entries displayed in Section 20 of Form 1066. This section contains information transcribed from the Form 8913, Credit for Federal Telephone Excise Tax Paid.

    Field Designator Title Max Char $/c Field Type Location
    20TTR Telephone Excise Tax Refund Amount 15 $/c (-) Line 15, Column (d)
    20TTI Telephone Excise Tax Credit Interest Amount 15 $/c (-) Line 15, Column (e)

  2. Correct any coding and transcription errors.

  3. Compare displayed fields with the return. If incorrect, overlay the screen with the correct information.

3.12.213.6  (01-01-2010)
Math/Consistency Priority IV General Information

  1. These errors will be displayed with the Error Code assigned to them for a specific error in ascending numerical order. The screen display will show the error code assigned and the fields needed to make the necessary correction.

  2. The blank field "CL" will be displayed for the entry of a "C" Clear Code on records where the possibility exists that a change or correction may not be needed.

  3. All errors must be resolved by either eliminating the error, or entering "C" in the Clear Code field.

3.12.213.6.1  (01-01-2010)
♦Error Code 001 - Tax Year - Invalid Entry♦

  1. Fields Displayed - Error Code 001 will display as follows:

    Field Designator Field Name Length
    01TXP Tax Period 6
    01RCD Received Date 8
    01CCC Computer Condition Code 10

3.12.213.6.1.1  (01-01-2009)
♦Invalid Condition♦

  1. Error Code 001 will generate when any of the following conditions are present:

    • Computer Condition Code "G" is not present – The processing date is equal to or more than 2 years and 10 months after the Return Due Date or Received Date (whichever is later) and CCC "W" is not present.

    • Computer Condition Code "G" is present – The processing date is equal to or more than 2 years and 10 months after the Return Due Date and CCC "W" is not present.

    • "G" Coded and Non-"G " Coded Returns – The processing date is less than 2 years after the Return Due Date and CCC "W" is present.

3.12.213.6.1.2  (01-01-2010)
♦Correction Procedures♦

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

  2. Do not send the following return to Statute Control for clearance. Instead, enter "W" in Field 01CCC and on the return and continue processing:

    • any return secured by Compliance (i.e., 6020(b))

    • any return with a Transaction Code (TC) 59X

    • any return that is a Substitute for Return prepared by Examination ("SFR" in the margin) with Document 13133, Expedite Processing Cycle, attached.

  3. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

    If… Then…
    Field 01RCD is blank 1. Enter the Received Date in Field 01RCD. Use the earliest date if multiple Received Dates are present.
    2. Determine the Received Date using the following priority:
    1) Stamped or hand written Received Date on the return.
    2) Earliest legible postmark date of the U.S. Post Office, foreign, or a Private Delivery Service.
    3) Revenue Officer’s or other IRS official’s signature date.
    4) Signature date, if within the current year (unless other information indicates signature date is invalid).
    5) DLN Julian Date.
    CCC "W" was entered incorrectly, Delete CCC "W" from Field 01CCC.
    The return has a stamp that indicates a previous clearance by Statute Control within the last ninety days, Enter CCC "W" in Field 01CCC and on the return.
    Note: Do not send the return to Statute Control.
    The return is not stamped by Statute Control within the last ninety days, 1. Suspend (SSPND) 310.
    2. Prepare Form 4227 to route to Statute Control.

3.12.213.6.1.3  (01-01-2009)
♦Suspense Correction♦

  1. When Statute Control returns the cleared document, enter "W" in Field 01CCC and on the return. Continue processing.

  2. Statute Control requests the record to be voided to them, SSPND 640.

3.12.213.6.2  (01-01-2010)
♦Error Code 002 - Name Control Mismatch♦

  1. Fields Displayed – Error Code 002 will display as follows:

    Field Designator Field Name Length
    CL Clear Code 1
    01NC Name Control/Check Digit 4
    >>>> Name Control Underprint 4
    01EIN Employer Identification Number 9
    01TXP Tax Period 6
    02CON In-Care-Of Name 35
    02FAD Foreign Address 35
    02ADD Street Address 35
    02CTY City 22
    02ST State 2
    02ZIP ZIP Code 12

    Note: The literal "SECTION 02 NOT PRESENT" will display if no entries are in Section 02.

3.12.213.6.2.1  (01-01-2009)
♦Invalid Condition♦

  1. Error Code 002 will generate when the Name Control mismatched against the National Account Profile (NAP) or the Entity Index File (EIF).

3.12.213.6.2.2  (01-01-2010)
♦Correction Procedures♦

  1. Before taking any additional research steps to resolve Error Code 002, drop the cursor to the bottom of the screen and transmit. This will ensure that any prior changes to the Name Control have posted to the NAP. If Error Code 002 reappears, continue with the remainder of the correction procedures.

  2. When corrections are made to Field 01NC or Field 01EIN, the computer will validate the entries with the NAP and reset the On-Line Entity (OLE) indicators as appropriate upon transmitting the ERS screen.

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

  4. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

  5. If Field 01NC and the name on the return or attachments are the same but differ from the underprint in Field 01NC, research INOLES to determine the correct name.

    If… Then…
    The name on the return or attachment matches the Name Control on INOLES, Bring up underprint.
    The Name Control on INOLES is different from the name on the return or attachment, Research NAMEB/NAMEE for a new EIN.

  6. If a new EIN is located, verify the Name Control using CC INOLES.

    If… Then…
    The Name Control on INOLES matches the name on the return or attachment, 1. Ensure that the entity information matches the return.
    2. Overlay Field 01EIN with the new EIN from NAMEB/NAMEE. When the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return.
    Note: Do not send Letter 3875C if three or less than three digits of the EIN are transposed, different, or missing or when INOLES indicates the account has been "merged to" or "merged from" .
    Multiple EINs are located, 1. SSPND 320 to Entity Control.
    2. Prepare Form 4227 with the notation "MULTIPLE EINs."
    INOLES indicates a "Merge To" (MT) EIN, Research the "MT" EIN on INOLES.
    The "MT" EIN matches the entity on the return or attachments, Enter the "MT" EIN in Field 01EIN.

    Note:

    Do not send Letter 3875C on "MT" EIN cases.

    The "MT" EIN does not match the entity on the return or attachments, SSPND 320 to Entity Control.

  7. If the name on the return or attachment does not agree with the Name Control on INOLES or there is an indication of a name change on Form 1066 (Line D, Box 2), research ENMOD for a new name.

    If… Then…
    The Name Control on ENMOD matches the name on the return or attachments, Enter "C" in the Clear Code field.
    The Name Control on ENMOD or INOLES does not match the name on the return or attachments, 1. SSPND 320 to route the return to Entity Control.
    2. Attach Form 4227 with the notation, "NO RECORD."

  8. If the Name change has not been made, research ENMOD for a pending TC 013.

    If . . . Then . . .
    A pending TC 013 is present, Enter "C" in the Clear Code field.
    A pending TC 013 is not present, 1. SSPND 320 to route to Entity Control.
    2. Attach Form 4227 with the notation "REQUEST NAME CHANGE (TC 013)."

3.12.213.6.2.3  (01-01-2010)
♦Suspense Correction♦

  1. If there is an indication that Entity Control has assigned an EIN to the return, determine the Entity Assignment Date:

    If… Then…
    The Entity Assignment Date is past the Return Due Date or Received Date, 1. GTSEC 01
    2. Enter the Entity Assignment Date in Field 01CRD.
    The Entity Assignment Date is not past the Return Due Date, Continue processing.

  2. Research IDRS using CC BMFOL to determine if payments posted incorrectly.

    If… Then…
    The payment posted to the wrong EIN, 1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module.
    2. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE" .
    3. Write, "FORM 3465 PREPARED " on return, to the left of the Entity section.
    4. Enter CCC "X" in Field 01CCC.
    The payment posted correctly, 1. Enter correct EIN in Field 01EIN and on the return.
    2. Enter "C" in the Clear Code field.
    Payment cannot be located, Enter "C" in the Clear Code field.

3.12.213.6.3  (01-01-2010)
♦Error Code 003 - Check Digit Invalid♦

  1. Fields Displayed - Error Code 003 will display as follows:

    Field Designator Field Name Length
    01NC Name Control 4
    01EIN Employer Identification Number 9

3.12.213.6.3.1  (01-01-2009)
♦Invalid Condition♦

  1. Error Code 003 will generate when any of the following conditions are present:

    • A check digit is present but is not valid for the EIN.

    • The letters "E," "G," or "M" are present in Field 01NC.

3.12.213.6.3.2  (01-01-2010)
♦Correction Procedures♦

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

  2. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

    If… Then…
    The check digit in Field 01NC does not match the return or is not legible, Enter the Name Control from the return in Field 01NC.
    The EIN on the return is not legible, Research NAMEB/NAMEE for correct EIN.

  3. Compare the EIN from NAMEB/NAMEE to the EIN on the return.

    If… Then…
    The EIN on Form 1066 matches the EIN on NAMEB/NAMEE, Enter Name Control from NAMEB/NAMEE in Field 01NC.
    Research indicates a different EIN, Verify the EIN and name on INOLES.
    Name Control on INOLES matches the name on the return or attachments, 1. Overlay Field 01EIN with the EIN from INOLES.
    2. Issue Letter 3875C as a non-suspense letter to the address on the return.

    Note:

    Do not send Letter 3875C if three or less digits of the EIN are transposed, different, or missing or when INOLES indicates the account has been "merged to" or "merged from"

    .
    Unable to locate an EIN or more than one EIN is located, 1. SSPND 320 to Entity Control.
    2. Prepare Form 4227 with the notation "NO RECORD OF EIN."

3.12.213.6.3.3  (01-01-2010)
♦Suspense Correction♦

  1. Research IDRS using CC BMFOL to determine if payments posted incorrectly.

    If… Then…
    The payment posted to the wrong EIN, 1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module. Use local procedures to post the payment prior to the return.
    2. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE" .
    3. Write "Form 3465 PREPARED" on the return, to the left of the Entity Section.
    4. Enter CCC "X" in Field 01CCC.
    The payment posted to the correct EIN, Enter the correct EIN in Field 01EIN and on the return.
    The payment cannot be located, Enter "C" in the Clear Code Field.

3.12.213.6.4  (01-01-2010)
♦Error Code 004 - Name Control/EIN Validation♦

  1. Fields Displayed - Error Code 004 will display as follows:

    Field Designator Field Name Length
    CL Clear Code 1
    01NC Name Control 4
    >>>> Name Control Underprint 4
    01EIN Employer Identification Number 9

3.12.213.6.4.1  (01-01-2010)
♦Invalid Condition♦

  1. Error Code 004 will generate when any of the following conditions are present:

    • The EIN is not present at Master File (MF).

    • The Entity Index File (EIF) and the National Account Profile (NAP) were not accessed or were not operational causing a blank underprint in Field 01NC.

    Note:

    An underprint of "XXXX" indicates that there is no account on the Master File, while a blank underprint indicates that the NAP has not been accessed or was not operational.

3.12.213.6.4.2  (01-01-2010)
♦Correction Procedures♦

  1. Before taking any additional research steps to resolve Error Code 004, drop the cursor to the bottom of the screen and transmit. This will ensure that any prior changes to the Name Control/EIN have posted to the NAP. If Error Code 004 reappears, continue with the remainder of the correction procedures.

  2. When corrections are made to Field 01NC or Field 01EIN, the computer will validate the entries with the NAP and reset the OLE indicators as appropriate upon transmitting the ERS screen.

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

  4. Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.

  5. If Field 01NC and the name on the return or attachments are the same but differ from the underprint in Field 01NC, research INOLES to determine the correct Name Control.

    If… Then…
    The name on the return or attachments matches the Name Control on INOLES, Bring up underprint.
    The Name Control on INOLES is different from the name on the return or attachments, Research NAMEB/NAMEE for a new EIN.

  6. If a new EIN is located, verify the Name Control using CC INOLES.

    If… Then…
    The Name Control on INOLES matches the name on the return or attachments, 1. Ensure that the entity information matches the return.
    2. Overlay Field 01EIN with the new EIN from NAMEB/NAMEE. When the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return.
    Note: Do not send Letter 3875C if three or less digits of the EIN are transposed, different, or missing or when INOLES indicates the account has been "merged to" or "merged from" .
    Multiple EINs are located, 1. SSPND 320 to Entity Control.
    2. Prepare Form 4227 with the notation "MULTIPLE EINs" .
    INOLES indicates a "Merge To" (MT) EIN, Research the "MT" EIN on INOLES.
    The "MT" EIN matches the entity on the return or attachments, Enter the "MT" EIN in Field 01EIN.
    The "MT" EIN does not match the entity on the return or attachments, SSPND 320 to Entity Control.

  7. If the name on the return or attachments does not agree with the Name Control on INOLES or there is an indication of a name change on Form 1066 (Line D, Box 2), research ENMOD for a new name.

    If… Then…
    The Name Control on ENMOD matches the name on the return or attachments, Enter "C" in the Clear Code field.
    The Name Control on ENMOD or INOLES does not match the name on the return or attachments, 1. SSPND 320 to route the return to Entity Control.
    2. Attach Form 4227 with the notation, "NO RECORD" .

  8. If the name change has not been made, research ENMOD for a pending TC 013.

    If… Then…
    A pending TC 013 is present, Enter "C" in the Clear Code field.
    A pending TC 013 is not present, 1. SSPND 320 to route to Entity Control.
    2. Attach Form 4227 with the notation, "REQUEST NAME CHANGE" .

3.12.213.6.4.3  (01-01-2010)
♦Suspense Correction♦

  1. If there is an indication that Entity Control has assigned an EIN to the return, determine the Entity Assignment Date.

    If… Then…
    The Entity Assignment Date is past the Return Due Date or Received Date, 1. GTSEC 01
    2. Enter the Entity Assignment Date in Field 01CRD.
    The Entity Assignment Date is not past the Return Due Date, Continue processing.

  2. Research IDRS using CC BMFOL to determine if payments posted incorrectly.

    If… Then…
    The payment posted to the wrong EIN, 1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module.
    2. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE" .
    3. Write "FORM 3465 PREPARED" on the return, to the left of the Entity section.
    4. Enter CCC "X" in Field 01CCC.
    The payment posted correctly, 1. Enter correct EIN in Field 01EIN and on the return.
    2. Enter "C" in the Clear Code field.
    Payment cannot be located, Enter "C" in the Clear Code field.

3.12.213.6.5  (01-01-2010)
♦Error Code 005 - Received Date♦

  1. Fields Displayed - Error Code 005 will display as follows:

    Field Designator Field Name Length
    CL Clear Code 1
    01TXP Tax Period 6
    01RCD Received Date 8

3.12.213.6.5.1  (01-01-2009)
♦Invalid Condition♦

  1. Error Code 005 will generate when the year-month of the processing date is later than the Tax Period plus 6 months and the Received Date is not present.

3.12.213.6.5.2  (01-01-2010)
♦Correction Procedures♦

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

  2. Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information.

  3. A Received Date must be in Field 01RCD if the return is not timely filed.

  4. Use the earliest Received Date in Field 01RCD if there are multiple received dates on the return.
    Exception: Do not use a Received Date in Field 01RCD that is prior to the end of the tax period.

  5. Determine the Received Date using the following priority when one is needed but is not stamped on the return or a valid handwritten Received Date is not present:

    • Earliest legible postmark (e.g., U.S. Post Office, foreign, or Private Delivery Service).

      Note:

      If an envelope is not attached, use the postmark date stamped on the face of the return.

    • Revenue Officer’s or other IRS official’s signature date.

    • Signature date, if within the current year (unless other information indicates signature date is invalid).

    • DLN Julian Date minus 10 days.

    • Current Date minus 10 days.

3.12.213.6.6  (01-01-2009)
Error Code 006 - Remittance with No Received Date

  1. Fields Displayed - The fields displayed for Error Code 006 are:

    Field Designator Field Name
    RMIT (Non-correctable field)
    01RCD Received Date

3.12.213.6.6.1  (01-01-2009)
Invalid Condition

  1. Remittance received with the return but a received date is not present.

3.12.213.6.6.2  (01-01-2009)
Correction Procedures

  1. Compare the displayed fields with the return.

  2. If incorrect, overlay the screen with the correct information.

    If... Then...
    Received date is needed, Determine the date in the order listed below:
    1. Earliest legible U. S. Post Office, foreign, or Private Delivery Service postmarked date.

    Note:

    If an envelope is not attached use the postmark date stamped on the face of the return.


    2. Revenue Officer's signature date.
    3. Taxpayer's signature date (only if within current year).
    4. The Julian control date.
    Exception: If the received date is not present on blue/green rockered remittance returns, use Julian control date.
    Note: If multiple dates are on the return, use the earliest date as the received date.
    (Enter in YYYYMMDD format)

3.12.213.6.7  (01-01-2010)
♦Error Code 007 - Received Date is Earlier Than Tax Year♦

  1. Fields Displayed - Error Code 007 will display as follows:

    Field Designator Field Name Length
    01TXP Tax Period 6
    01RCD Received Date 8
    01CCC Computer Condition Code 10


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