- 3.12.213.6 Math/Consistency Priority IV General Information
- Exhibit 3.12.213-1 Form 1066 - U.S. Real Estate Mortgage Investment Conduit Income Tax Return
- Exhibit 3.12.213-2 ♦Action Codes♦
- Exhibit 3.12.213-3 ♦U.S. Possessions/Territories State Abbreviations and ZIP Codes♦
- Exhibit 3.12.213-4 ♦Province/Country Code - Canada Only♦
- Exhibit 3.12.213-5 ♦Province, State and Territory Abbreviations♦
- Exhibit 3.12.213-6 ♦Potential Frivolous Returns♦
- Exhibit 3.12.213-7 Form 8913, Credit for Federal Telephone Excise Tax Paid
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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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Error Code 007 will generate when the Received Date is earlier than the first day of the Tax Period/Year.
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Correct all misplaced entries, coding, and transcription errors.
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Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information.
If… And… Then… The Received Date is invalid and it appears that the incorrect year was used (i.e. 20090115 instead of 20100115), and other information (Julian date, postmark date, and/or signature date) indicates that the received date should be the current year, Change the Received Date year to the current year in Field 01RCD. The return is an early filed "Final" return, 1. Change the Tax Period to agree with the month before the Received Date and enter in Field 01TXP.
2. Enter "F" in Field 01CCC.The return is not an early filed "Final" return, The Tax Period ending is less than four months after the Received Date, 1. SSPND 480
2. Prepare Form 4227 with the notation, "EARLY FILED" .The return is not an early filed "Final" return, The Tax Period ending is more than four months after the Received Date, 1. Initiate correspondence for clarification of the Tax Period.
2. SSPND 211.The return is not an early filed "Final" return, The month of the Received Date is prior to the Tax Period ending, Change the month of the Received Date to equal the month of the Tax Period.
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When the reply is received, correct the screen as follows:
If… Then… The taxpayer replies that the return is a "Final" , 1. Change the Tax Period to agree with the month before the Received Date and enter in Field 01TXP.
2. Enter "F" in Field 01CCC.The taxpayer replies that the return is not a final return, SSPND 480 until the end of the tax period provided by the taxpayer. The taxpayer fails to reply or the reply is not adequate, 1. Enter "3" in Field 01CCC.
2. SSPND 480 until the end of the tax period indicated on the return.
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Fields Displayed - Error Code 010 will display as follows:
Field Designator Field Name Length 01RCD Received Date 8 01CCC Computer Condition Code 10 01DOB Date REMIC Started 6 01NOR Number of Residual Holders 6 01TEF TEFRA 1 01MSC Missing Schedule Code 4 01CAF CAF Indicator 1 01ADC Audit Code 3 01ISI Installment Sales Indicator 1 Section 02 Present or Not Present Section 03 Present or Not Present Section 04 Present or Not Present Section 05 Present or Not Present Section 06 Present or Not Present Section 07 Present or Not Present Section 08 Present or Not Present Note:
The literal SECTION XX PRESENT or "SECTION XX NOT PRESENT" will display for Sections 02 through 08 (XX = section number).
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Error Code 010 will generate when Computer Condition Code "G" is present and fields other than Fields 01CCC, 01NC, 01EIN, 01TXP, O1CRD, and 01RCD contain entries.
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Correct all misplaced entries, coding, and transcription errors.
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Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information.
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Determine if CCC "G" was input correctly:
If… Then… Return indicates amended, revised, supplemental, corrected or superseding, Research the applicable Command Code(s) e.g., BRTVU, BMFOL, SUMRY, and/or TXMOD, etc., to determine if information is exactly the same as the posted return. All information is not the same, -
Process the return with CCC "G" .
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DLSEC to delete all sections except Section 01.
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Delete the invalid entries that are present in Section 01. GTSEC 01, if necessary.
All information is exactly the same, SSPND 640 and route to Rejects. A return is not posted for the tax period and the return is an amended return, Continue processing as an amended return. A return is not posted for the tax period and the return is not amended ("G" coded in error), -
Enter all data in Sections 02, 03, and 07.
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Ensure that the Section 01 fields are correct.
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Delete the "G" code in Field 01CCC.
Note:
When deleting CCC "G" and the sections required are shown as being present, no further verification of section entries is needed.
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Fields Displayed - Error Code 014 will display as follows:
Field Designator Field Name Length 02CON "In-Care-Of" Name 35 02FAD Foreign Address 35 02ADD Street Address 35 02CTY City 22 02ST State 2 02ZIP ZIP Code 12
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Error Code 014 will generate when any of the following conditions are present:
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If the street address is present, Field 02CTY and Field 02ST must be present, unless a Major City Code is used
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If a Major City Code is used, Field 02ADD must be present
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A City must be present. If the city is not in the Major City format, Field 02ST must be present. Field 02ADD can be blank
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A Major City Code is used and Field 02ST is present
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Correct all misplaced entries, coding, and transcription errors.
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Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information.
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Research any of the following for valid address information: Document 7475, or INOLE, NAMEB/NAMEE, ENMOD.
If... And... Then... A Major City Code is present, A street address is not available, 1. Enter the City Name (spelled out, not in Major City Code format) in Field 02CTY.
2. Enter the State Code in Field 02ST.The Major City Code is correct, The state is present, Delete Field 02ST. The ZIP Code or address cannot be corrected from the information on the return, attachments, or from research, DLSEC Section 02.
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Fields Displayed - Error Code 015 will display as follows:
Field Designator Field Name Length 02FAD Foreign Address 35 02ADD Street Address 35 02CTY City 22 02ST State 2 02ZIP ZIP Code 12
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Error Code 015 will generate when any of the following conditions are present:
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Field 02ST has an entry other than "." (period/space) when Field 02FAD is present
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Field 02ZIP has an entry when Field 02FAD is present
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Correct all misplaced entries, coding, and transcription errors.
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Compare displayed fields with the return. If incorrect, overlay the screen with the correct information.
If… Then… A foreign address is present in Field 02FAD, 1. Field 02ST must contain "." (period/space).
2. Delete any entry in Field 02ZIP.A foreign address is not present in Field 02FAD, Check return for foreign address. A foreign address is present on the return, 1. Enter the foreign address in Field 02FAD Note:
If additional space is required, continue entering the address in Field 02ADD.
2. Field 02CTY must contain the appropriate foreign country code. (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 02FAD if the foreign address is from Canada and the address contains a province name or abbreviation. (See Exhibit 3.12.213-4)
3. Field 02ST must contain "." (period/space)
4. Delete any entry in Field 02ZIP.A foreign address is not present on the return, 1. Verify the address on the return is not a foreign address.
2. SSPND 610
3. Renumber return with domestic DLN.
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Fields Displayed - Error Code 016 will display as follows:
Field Designator Field Name Length 02CON "In-Care-Of" Name 35 02FAD Foreign Address 35 02ADD Street Address 35 02CTY City 22 02ST State 2 02ZIP ZIP Code 12
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Error Code 016 will generate when the ZIP Code is inconsistent with the Major City Code or State Code.
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Correct all misplaced entries, coding, and transcription errors.
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Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information.
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If Field 02ZIP is present, then 02ADD, 02CTY and 02ST must be present.
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Research Document 7475, or INOLES, NAMEB/NAMEE, ENMOD for valid ZIP Code information.
If… And… Then… Unable to determine a valid ZIP Code from the return or attachments, A valid ZIP Code is found through IDRS research Enter the valid ZIP Code found in Field 02ZIP. Only the first three digits of the ZIP Code can be determined, Enter "01" in the (4th) and (5th) position. A ZIP Code cannot be determined, Enter the 3 digits follow by "01" of the first ZIP Code listed for the applicable state in Document 7475 (e.g., 99501 for Alaska). The address is in a major city, A Major City Code can be determined, Enter Major City Code in Field 02CTY. The address is in a major city, A Major City Code cannot be determined, 1. Enter the name of the city in Field 02CTY.
2. Enter the State Code in Field 02ST.The address is not in a major city, 1. Enter the appropriate state abbreviation in Field 02ST.
2. Enter the ZIP Code in Field 02ZIP. -
APO/DPO/FPO Addresses - An Army Post Office (APO), Diplomatic Post Office (DPO), or Fleet Post Office (FPO) is not a foreign address. The Postal Service established new address requirements for APO/DPO/FPO addresses. If an address appears in the old APO/DPO/FPO format, convert to the new State Code abbreviation based on the ZIP Code. For example, if the old address appears as "APO New York, NY 091XX" , convert to read as "APO AE 091XX" . Refer to the APO/DPO/FPO conversion chart below:
ZIP Code State Code 340 AA 090-098 AE 962-966 AP
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Fields Displayed - The fields displayed for Error Code 026 are:
Field Designator Field Name Length 01EIN Employer Identification Number 9 01TXP Tax Period 6 >>>> Tax Period Underprint 01CCC Computer Condition Code 10 01ADC Audit Code 3
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The Tax Period Underprint is present, the Tax Period does not agree with the Entity Index File and Computer Condition Code "F" is not present.
Reminder:
A correction to any displayed entry must be entered and transmitted prior to entering a "C" in the Clear Code. The Clear Code does not permit any other correction to the record.
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Before taking any additional research steps to resolve Error Code 026, drop the cursor to the bottom of the screen and transmit. This will ensure that any prior changes to the Fiscal Year Month (FYM) have posted to the National Account Profile (NAP).
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If Error Code 026 reappears, continue with the remainder of the correction procedures.
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When corrections are made to Field 01TXP, the computer will validate the entries with the NAP and reset the indicators as appropriate upon transmitting the ERS screen.
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Correct all misplaced entries, coding, and transcription errors.
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Compare the displayed fields with the return and attachments. If incorrect, overlay the screen with the correct information.
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The following information pertains to correction procedures for Error Code 026:
If... Then... A final return, Enter Computer Condition Code "F" . Not a final return and the EIN on the return differs from 01EIN, 1. Change 01EIN to agree with the return.
2. When the screen returns, enter a "C" in the Clear Code.Not a final return and the EINs agree, 1. Research to verify EIN.
2. Correct 01EIN if different EIN found.
3. If EIN on the return is correct, compare the tax period on the return with 01TXP.The tax period on the return does not agree with 01TXP, Change 01TXP to agree with the return.
(TXP must be entered as YYYYMM).The EIN and tax period on the return agree with 01EIN and 01TXP and are transcribed correctly, 1. Correspond with the taxpayer to determine why the FYM (Fiscal Year Month) is other than 12.
2. Suspend the return with Action Code 211.
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The following information pertains to suspense corrections:
If... Then... The taxpayer does not reply, Void the DLN, and inform the taxpayer that he/she does not meet the requirements for filing a Form 1066. The return was received with remittance, Prepare Form 3244 to remove the remittance before voiding the DLN. Post the remittance to the taxpayer’s account with a Transaction Code "670" .
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Fields Displayed - The fields displayed for Error Code 028 are:
Field Designator Field Name Length 01RCD Received Date 8 01CCC Computer Condition Code 10
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Error Code 028 will generate when either of the following conditions is present:
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Computer Condition Code "R" , "7" or "D" is present and the Received Date is not present.
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Error Code 028 is bypassed on a "G" coded return.
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The following information pertains to the correction procedures for Error Code 028:
If... Then... The displayed fields do not match the information on the return, Overlay the screen with the correct information. "R" , "D" or "7" is present on the return, Enter the Received Date in 01RCD. "R" , "D" or "7" is not on the return, Delete the "R" , "D" , or "7" from 01CCC. The return is not a "G" coded return (e.g., no indication that the return is "Amended" , or nothing indicates that this is other than the first return filed), 1. GTSEC 02 and enter the data in the fields for Section 02 and transmit.
2. When Error Code 010 generates enter the appropriate fields and delete Field 01CCC.The return is correctly "G" coded, Enter the Received Date in 01RCD. Determine the date in the order listed below:
1. Earliest legible U.S. Post Office, foreign, or Private Delivery Service postmarked date.
2. Service Center Automated Mail Processing System (SCAMPS) digital date.
3. Revenue Officer's signature date.
4. Taxpayer's signature date (only if within current year).
5. Julian control date.Exception:
If the received date is not present on blue/green rockered remittance returns, use DLN control date as in 4 above.
Note:
If multiple dates are on the return, use the earliest date as the received date.
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Fields Displayed - The fields displayed for Error Code 034 are:
Field Designator Field Name Length 01TXP Tax Period 6 01RCD Received Date 8 01CRD Correspondence Received Date 8
(No longer edited by Code and Edit.)
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Error Code 034 will generate when either of the following conditions is present:
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The Correspondence Received Date (Field 01CRD) is earlier or the same as either the Received Date (Field 01RCD), or the Return Due Date
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The Correspondence Received Date is later than the processing date
Note:
An entry in Field 01CRD does not require an entry in Field 01RCD.
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Compare the displayed fields with the return. If incorrect, overlay the screen with the correct information.
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The Received Date will either be stamped or edited on the return. If the received date is missing or illegible, determine the date in the order below:
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Earliest legible postmark (e.g., U.S. Post Office, foreign, or Private Delivery Service)
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Service Center Automated Mail Processing System (SCAMPS) digital date.
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Revenue Officer's signature date
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Taxpayer's signature date (only if within current year)
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The Julian control date
Exception:
If Received Date is not present on blue/green rockered remittance returns, use Julian control date.
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A Correspondence Received Date (CRD) will be determined from the date the reply was received in the Submission Processing Campus. Refer to the return for the Correspondence Received Date. It is edited in the Entity section of the return. This can be verified by checking the stamped Received Date on the correspondence attached to the return.
If... Then... The Correspondence Received Date is present and earlier than the Return Due Date or later than the processing date, Delete the Correspondence Received Date from Field 01CRD. More than one received date is present and earlier than the Return Due Date or later than the processing date, Delete the Correspondence Received Date from Field 01CRD. More than one received date is present, Use the earliest date. "No Reply" , Enter "3" in Field 01CCC to bypass the consistency check.
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Fields Displayed - The fields displayed for Error Code 042 are:
Field Designator Field Name Length 01TXP Tax Period 6 01CCC Computer Condition Code 10
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The tax period is 198801 or subsequent, the tax period month is other than "12" , and Computer Condition Code "F" is not present.
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Search the return and attachments for an indication that this is a final return.
If... Then... The taxpayer indicates the return is a final return, Enter Computer Condition Code "F" in Field 01CCC. Other than a calendar year and determination cannot be made that the return is a final return, 1. Correspond with the taxpayer to determine the correct tax period.
2. Advise that Form 1066 instructions state that the return must be for a calendar year unless it is a final.
3. Suspend the return with Action Code "211" .
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The following information pertains to suspense corrections:
If... Then... The taxpayer does not reply, Void the DLN, and inform the taxpayer that he/she does not meet the requirements for filing a Form 1066. The return was received with remittance, Prepare Form 3244, Payment Posting Voucher, to remove the remittance before voiding the DLN. Post the remittance to the taxpayer’s account with a Transaction Code "670" .
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Fields Displayed - The fields displayed for Error Code 073 are:
Field Designator Field Name Length 01CCC Computer Condition Code 10 01CRD Correspondence Received Date 8
(No longer edited by Code and Edit.)
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The error condition will generate if Field 01CCC is "3" and a date was entered in Field 01CRD.
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Review the return and attachments for IRS correspondence.
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If IRS correspondence is attached, determine if a reply was received from the taxpayer.
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If so, circle the CCC "3" edited on the return. Delete CCC "3" .
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If no reply is attached, circle the Correspondence Received Date entered on the return and delete the entry in the field 01CRD.
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General Information -
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For tax returns filed with tax period ending 200612 through 200711, a refund for the federal telephone excise tax paid on long-distance service may be claimed.
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The credit claimed is for the tax paid on service that was billed after February 28, 2003 and before August 1, 2006.
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Forms 1066 claiming this credit must complete and submit Form 8913, Credit for Federal Excise Tax Paid, with their tax return.
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Fields Displayed - Error Code 074 will display as follows:
Field Designator Field Name CL Clear Code 01TXP Tax Period 07TTE Total Telephone Excise Tax Refund Amount (previously Line 2b; now is dotted portion to the left of Line 4.) 07TC> Total Telephone Excise Tax Refund (Computer) 07TRV Total Telephone Excise Tax Refund (Verified) 20TTR Telephone Tax Refund Amount 20TTI Telephone Tax Interest Amount
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Error Code 074 will generate when any of the following conditions are present:
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Tax period is before 200612 or after 200711
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There are entries in Fields 20TTR and 20TTI and there is no entry in Field 07TTE
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Field 20TTI is greater than Field 20TTR and the total claimed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
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TETR return amount (Field 07TTE) and Total Telephone Excise Tax Refund (Computer) (Field 07TC>) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
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Code and Edit will no longer edit the TETR amount to the left of Line 4 of Form 1066. This will allow all TETR claims filed on original returns to tall out in ERS. Follow directions below to resolve EC 074 when it generates on Form 1066:
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Change all TETR fields to zero on the screen display and remove AC 420 if applicable.
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Detach Form 8913 and make a copy of the signature page (page 1) Form 1066. Staple the copy of the signature page behind Form 8913 and route to Accounts Management.
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Send TPNC 90 to the taxpayer with the following literal: Due to processing constraints your Credit for Federal Telephone Tax Paid could not be processed with your tax return. Your claim for this credit has been forwarded to another area to be processed.
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Fields Displayed - The field displayed for Error Code 800 is:
Field Designator Field Name Length 01RCD Received Date 8
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The return was processed through RRPS (Returns Remittance Processing System) and the Received Date is not present.
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Determine the Received Date using the following priorities when the date is not stamped on the return or a valid handwritten received date is not present:
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Earliest legible postmark (e.g., U.S. Post Office, foreign, or Private Delivery Service)
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Service Center Automated Mail Processing System (SCAMPS) digital date.
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Revenue Officer’s or other IRS official’s signature date
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Signature date, if within the current year (unless other information indicates signature date is invalid)
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DLN Julian Date
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Fields Displayed - The fields displayed for Error Code 812 are:
Field Designator Field Name NC Notice Codes 0705A Total Tax 0706 Tax Paid with Form 7004 07TTE Telephone Excise Tax Return Refund Amount (previously Line 2b; now dotted portion to the left of Line 4.) 07TC> Telephone Excise Tax Return (Computer Generated) 07TRV Telephone Excise Tax Return (Verified Field) 07B/R Balance Due/Overpayment
("ERS input only" Field)
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The difference between Balance Due/Overpayment Computer and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
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Check for transcription or taxpayer errors. Compare Field 0705A (Total Tax) against the taxpayer’s entry on the return, Line 1, Section II (Tax and Payments), Page 1, Form 1066.
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The computer will compute Balance Due/Overpayment Computer field by subtracting Field 0706 (Tax Paid with Form 7004) and Field 07TTE (Telephone Excise Tax Credit) from Field 0705A (Total Tax).
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If the return is blank, verify the "Total Tax" amount against the amount on Line 12, Part IV (Total Tax) Schedule J.
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If Schedule J, Part IV, Line 12 is blank, but there are items on Schedule J under Part I (Tax on Net Income From Prohibited Transactions), Part II (Tax on Net Income From Foreclosure Property), and/or Part III (Tax on Contributions After the Startup Day), math verify each of the following items as described below:
If... Then... Tax on Net Income From Prohibited Transactions (Schedule J, Part I, Line 4) is being verified, 1. Line 2 (Total Income) must equal the sum of Lines 1a, 1b, 1c, and 1d.
2. Line 4 must equal Line 2 minus Line 3.Tax on Net Income From Foreclosure Property (Schedule J, Part II, Line 10) is being verified, Math verify the following:
1. Line 7 (Total Income from Foreclosure of Property) must equal the sum of Line 5 plus Line 6.
2. Line 9 must equal Line 7 minus Line 8.
3. Line 10 must equal 35% of Line 9.Total Tax (Schedule J Part IV, Line 12) is being verified, 1. Add Lines 4, 10 and 11, Schedule J.
2. Enter the sum on Schedule J, Part IV, Line 12, and on Page 1, Section II, Line 1 (Form 1066).
3. If correct as transcribed, attach an adding machine tape verifying Schedule J.
4. Enter the total in Field 0705A.
5. Correct Schedule J, Part IV, Line 12, and Page 1, Section II, Line 1 (Form 1066) on the return, if different.
6. Compare Field 0706 (Tax Paid with Form 8736/8800) against the taxpayer’s entry on the return (Line 2, Section II) (Tax and Payments), Page 1, Form 1066.
7. Correct the screen display if different.All corrections are made and there is a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , Send appropriate TPNC. CCC "4" is present, 1. Enter the amount from the verified total (Balance Due/Overpayment Computer) in Field 07B/R (the "ERS input only" field).
2. This will clear Error Code 812 from the screen display.No corrections are needed to Fields 0705A, 0706, and/or 07TTE, Caution:
Do not attempt to correct Field 07TTE. Correspond to verify taxpayer entry.
Send the appropriate TPNC. See IRM 3.12.213.6.24.3, Taxpayer Notice Codes. Note:
Field 07TC> is the computer generated total from Form 8913, Credit for Federal Telephone Excise Tax Refund. Field 07TRV is the Telephone Excise Tax Return Verified Field.
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The allowable Taxpayer Notice Codes (TPNC) are provided as follows:
Taxpayer Notice Code (TPNC) Definition 01 We found an error in the computation of your total income from prohibited transactions. 05 We found an error in the computation of tax on net income from prohibited transactions. 10 We found an error in the computation of tax due or overpayment amount. 20 We found an error in the computation of tax on net income from foreclosure property. 25 We found an error in the computation of tax on contributions after the startup day. 90 Blank Notice - 10 blank lines are available on the notice for whatever statement is needed.
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Fields Displayed - The field displayed for Error Code 999 is:
Field Designator Field Name Length 01TXP Tax Period 6
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Error Code 999 will be generated for all returns that are in error status at the end of the processing year.
| Action Code | Description | Workday Suspense Period | Function Used In |
|---|---|---|---|
| 001 | Input Document | 0 | GEN |
| Correspondence | |||
| 210 | EPMF Correspondence | 60 | ES, S |
| 211 | First Taxpayer Correspondence | 40 | CE, EC, S |
| 212 | Second Taxpayer Correspondence | 25 | CE, EC, S |
| 213 | Correspondence to Other Than Taxpayer | 40 | CE, EC, S |
| 215 | International Correspondence | 45 | CE, EC, S |
| 225 | Taxpayer Correspondence (Signature Only) Domestic | 40 | CE, EC, S |
| 226 | Taxpayer Correspondence (Signature Only) International | 40 | CE, EC, S |
| In-House Research | |||
| 300 | Examination (Fuel Tax Credit) | 10 | CE, EC, S |
| 310 | Statute Control | 10 | CE, EC, S |
| 320 | Entity Control | 10 | CE, EC, S |
| Criminal Investigation Division | |||
| 331 | Frivolous Review | 3 | CE, EC |
| 332 | QRDT Review | 3 | CE, EC |
| 333 | Prompt Audit | 10 | CE, EC, S |
| 334 | Joint Committee | 10 | CE, EC, S |
| 335 | Frivolous Case | 10 | CE, EC, S |
| 336 | QRDT Case | 10 | CE, EC, S |
| 337 | Other CID (Criminal Investigation Division) | 10 | CE, EC, S |
| Accounting | |||
| 341 | Manual Refund | 10 | CE, EC, S |
| 342 | Credit Verification | 10 | CE, EC, S |
| 343 | Black Liquor | 10 | CE, EC, S |
| 344 | Manual Refund - ERS | 0 | EC |
| MFTRA Research | |||
| 351 | TIN Research | 0 | EC, S |
| 352 | Name Research | 3 | CE, EC, S |
| 353 | Address Research | 3 | CE, EC, S |
| 354 | Filing Requirements Research | 3 | CE, EC, S |
| 355 | Other MFTRA Research | 5 | CE, EC, S |
| 360 | Other In-House Research | 10 | CE, EC, S |
| 370 | Examination | 10 | CE, EC, S |
| Management Suspense | |||
| 410 | Assistance Needed | 0 | EC |
| 420 | 2006 tax return with Form 8913 credit (TETR) | 5 | CE, EC, S |
| 430 | Management Suspense B | 10 | CE, EC, S |
| 440 | Management Suspense C | 15 | CE, EC, S |
| 450 | Management Suspense D | 20 | CE, EC, S |
| 460 | Management Suspense E | 25 | CE, EC, S |
| 470 | Complex Error Codes | 0 | EC |
| 480 | Early Filed Suspense | 150 | CE, EC, S |
| 490 | System Problem | 5 | CE, EC, S |
| Missing Document | |||
| 510 | Missing Document | 0 | CE |
| 511 | Missing Document - 1st Suspense | 25 | EC, S |
| 512 | Missing Document - 2nd Suspense | 20 | S |
| 513 | Missing Document - 3rd Suspense | 20 | S |
| 515 | Missing Document - Short Term | 5 | EC, S |
| Rejects | |||
| 550 | Magnetic Tape Return - Check for Attachments | 0 | CE |
| 551 | Magnetic Tape - Inconsistent Data | 0 | CE |
| 610 | Renumber - Non-Remit | 0 | CE, EC |
| 611 | Renumber - Remit | 0 | CE, EC |
| 620 | NMF/Non-ADP | 0 | CE, EC, S |
| 630 | Reinput | 0 | EC, S |
| 640 | Void | 0 | CE, EC, S |
| 650 | International (ACI) | 0 | CE, EC, S |
| 660 | Data Control Delete (TEP Delete) | 0 | S |
| 670 | Rejected Missing Document | 0 | S |
| 700 | Duplicate Block DLN | 0 | GEN |
| 711 | Duplicate Document DLN from Code & Edit | 0 | GEN |
| 712 | Duplicate Document DLN from Error Correction | 0 | GEN |
| 713 | Duplicate Document DLN from Unpostables | 0 | GEN |
| 714 | Duplicate Document DLN from Unworkable Suspense | 0 | GEN |
| 715 | Duplicate Document DLN from Workable Suspense | 0 | GEN |
| 800 | NAP Linkage Problem | 2 | EC, S |
| 900 | Unpostable Record | 0 | GEN |
| CE = Code & Edit EC = Error Correction |
S = Suspense Correction GEN = Computer Generated |
||
| City | ZIP Code | City | ZIP Code |
|---|---|---|---|
| American Samoa (AS) | Federated States of Micronesia (FM) | ||
| Faga'itua | 96799 | Chuuk | 96942 |
| Leone | 96799 | Kosrae | 96944 |
| Olosega Manua' | 96799 | Pohnpei | 96941 |
| Pago Pago | 96799 | Yap | 96943 |
| Marshall Islands (MH) | Palau (PW) | ||
| Ebeye | 96970 | Koror | 96940 |
| Majuro | 96960 | Palau | 96940 |
| Northern Mariana Islands (MP) | Virgin Islands (VI) | ||
| Capitol Hill | 96950 | Charlotte Amalie | 00802 |
| Rota | 96951 | Christiansted | 00820 |
| Saipan | 96950 | Cruz Bay | 00830 |
| Tinian | 96952 | Downtown | 00840 |
| Guam (GU) | Frederiksted | 00840 | |
| Agana | 96910 | Kingshill | 00850 |
| Inarajan | 96917 | Saint Croix | 00820 |
| Merizo | 96916 | Saint John | 00830 |
| Tamuning | 96931 | Saint Thomas | 00805 |
| Umatac | 96915 | Sunny Isle | 00850 |
| Yona | 96915 | Veterans Annex | 00820 |
| Puerto Rico (PR) | |||
| Adjuntas | 00601 | Laplata | 00786 |
| Aquada | 00602 | Lares | 00669 |
| Aquadilla | 00603 | Las Marias | 00670 |
| Agnes Buenas | 00703 | Las Piedras | 00771 |
| Aguirre | 00704 | Levittown | 00949 |
| Aibonito | 00705 | Loiza | 00772 |
| Anasco | 00610 | Loiza Street Station | 00936 |
| Angeles | 00611 | Loquillo | 00773 |
| Arecibo | 00612 | Manati | 00674 |
| Arroyo | 00714 | Maricao | 00606 |
| Bajadero | 00616 | Maunabo | 00707 |
| Barceloneta | 00617 | Mayaquez | 00680 |
| Barraquitas | 00794 | Mercedita | 00715 |
| Barrio Obrero Station | 00935 | Minillas Center | 00936 |
| Bayamon | 00956 | Moca | 00676 |
| Boqueron | 00622 | Morovis | 00687 |
| Cabo Rojo | 00623 | Naguabo | 00718 |
| Caguas | 00725 | Narajito | 00719 |
| Camuy | 00627 | Orocovis | 00720 |
| Canovanas | 00729 | Palmer | 00721 |
| Caparra Heights | 00920 | Patillas | 00723 |
| Carolina | 00982 | Penuelas | 00624 |
| Catano | 00962 | Ponce | 00731 |
| Cayey | 00736 | Puerta de Tierra | 00936 |
| Ceiba | 00735 | Puerta Real | 00740 |
| Cerro Gordon | 00754 | Punta Santiago | 00741 |
| Ciales | 00638 | Quebradillas | 00678 |
| Cidra | 00739 | Ramey | 00603 |
| Coamo | 00769 | Rincon | 00677 |
| Comerio | 00782 | Rio Blanco | 00744 |
| Condado | 00907 | Rio Grande | 00721 |
| Corozal | 00783 | Rio Piedras | 00927 |
| Coto Laurel | 00780 | Rosario | 00636 |
| Culebra | 00775 | Sabana Grande | 00637 |
| Dorado | 00646 | Sabana Hoyos | 00688 |
| Ensenada | 00647 | Sabana Seca | 00952 |
| Esperanza | 00765 | Saint Just | 00978 |
| Fajardo | 00738 | Salinas | 00751 |
| Fernandez Juncos | 00936 | San Antonio | 00690 |
| Florida | 00650 | San Francisco | 00927 |
| Fort Buchanan | 00934 | San German | 00683 |
| Garrachales | 00652 | San Juan | 00936 |
| Guanica | 00653 | San Lorenzo | 00754 |
| Guayama | 00784 | San Sebastian | 00685 |
| Guayanilla | 00656 | Santa Isabel | 00757 |
| Guaynabo | 00965 | Sanrurce | 00936 |
| Gurabo | 00778 | Toa Alta | 00953 |
| Hatillo | 00659 | Toa Boa | 00949 |
| Hato Rey | 00936 | Trujillo Alto | 00976 |
| Harmingueros | 00660 | University | 00936 |
| Humacao | 00791 | Utuado | 00641 |
| Isabela | 00662 | Vega Alta | 00692 |
| Jayuya | 00664 | Vega Baja (box 1-9049) | 00694 |
| Juana Diaz | 00795 | Vieques | 00765 |
| Juncos | 00777 | Villalba | 00766 |
| La Cumbre | 00926 | Yabucoa | 00767 |
| Lajas | 00667 | Yauco | 00698 |
| Canadian Province | Province Abbreviation | Country Code (Field 02CTY) |
|---|---|---|
| Alberta | AB | XA |
| British Columbia | BC | XB |
| Manitoba | MB | XM |
| New Brunswick | NB | XN |
| Newfoundland and Labrador | NL | XL |
| Northwest Territories | NT | XT |
| Nova Scotia | NS | XS |
| Nunavut | NU | XV |
| Ontario | ON | XO |
| Prince Edward Island | PE | XP |
| Quebec | QC | XQ |
| Saskatchewan | SK | XW |
| Yukon | YT | XY |
| Australia State | Abbreviation |
|---|---|
| Australian Capital Territory | ACT |
| New South Wales | NSW |
| Northern Territory | NT |
| Queensland | QLD |
| South Australia | SA |
| Tasmania | TAS |
| Victoria | VIC |
| Western Australia | WA |
| Brazil State | Abbreviation |
|---|---|
| Acre | AC |
| Alagoas | AL |
| Amapa | AP |
| Amazonas | AM |
| Bahia | BA |
| Ceara | CE |
| Distrito Federal | DF |
| Esperito Santo | ES |
| Goias | GO |
| Maranhao | MA |
| Mato Grosso | MT |
| Mato Grosso do Sul | MS |
| Minas Gerais | MG |
| Parana | PR |
| Paraiba | PB |
| Para | PA |
| Pernambuco | PE |
| Piaui | PI |
| Rio Grande do Norte | RN |
| Rio Grande do Sul | RS |
| Rio de Janeiro | RJ |
| Rondonia | RO |
| Roraima | RR |
| Santa Catarina | SC |
| Sergipe | SE |
| Sao Paulo | SP |
| Tocantins | TO |
| Canada Province/Territory | Abbreviation |
|---|---|
| Alberta | AB |
| British Columbia | BC |
| Manitoba | MB |
| New Brunswick | NB |
| Newfoundland and Labrador | NL |
| Northwest Territories | NT |
| Nova Scotia | NS |
| Nunavut | NU |
| Ontario | ON |
| Prince Edward Island | PE |
| Quebec | QC |
| Saskatchewan | SK |
| Yukon | YT |
| Cuba Provincias | Abbreviation |
|---|---|
| Camaguey | CG |
| Ciego de Avila | CA |
| Cienfuegos | CF |
| Ciudad di La Habana | CH |
| Gramma (Bayamo) | GR |
| Guantanamo | GT |
| Holguin | HO |
| La Habana | HA |
| Matazas | MT |
| Municipio Especial Isla de la Juventud | IJ |
| Pinar del Rio | PR |
| Sancti Spiritus | SS |
| Santiago de Cuba | SC |
| (Victoria de) Las Tunas | LT |
| Villa Clara | VC |
| Italy Provincia | Abbreviation |
|---|---|
| Agrigento | AG |
| Alessandria | AL |
| Ancona | AN |
| Aosta/Aoste | AO |
| Arezzo | AR |
| Ascoli Piceno | AP |
| Asti | AT |
| Bari | BA |
| Belluna | BL |
| Beneveto | BN |
| Bergamo | BG |
| Biella | BI |
| Bologna | BO |
| BolozanoBolzen | BZ |
| Brescia | BS |
| Brindisi | BR |
| Cagliari | CA |
| Caltanisetta | CL |
| Campobasso | CB |
| Caserta | CE |
| Catania | CT |
| Catanzaro | CZ |
| Chieti | CH |
| Como | CO |
| Cosenza | CS |
| Cremona | CZ |
| Crotone | KR |
| Cuneo | CN |
| Enna | EN |
| Ferrara | FE |
| Firenze | FI |
| Foggia | FG |
| Forli | FO |
| Frosinone | FR |
| Genova | GE |
| Gorizia | GO |
| Grosseto | GR |
| Imperia | IM |
| Isernia | IS |
| L'Aquila | AQ |
| La Spezia | SP |
| Latina | LT |
| Lecce | LE |
| Livorno | LI |
| Lodi | LO |
| Lucca | LU |
| Macerata | MC |
| Mantova | MN |
| Massa-Carrara | MS |
| Matera | MT |
| Messina | ME |
| Milano | MI |
| Modena | MO |
| Napoli | NA |
| Novara | NO |
| Nuoro | NU |
| Oristano | OR |
| Padova | PD |
| Palermo | PA |
| Parma | PR |
| Pavia | PV |
| Perugia | PG |
| Pesaro-Urbino | PS |
| Pescara | PE |
| Piacenza | PC |
| Pisa | PI |
| Pistoia | PT |
| Pordenone | PN |
| Potenza | PZ |
| Prato | PO |
| Ragusa | RG |
| Pavenna | RA |
| Peggio de Calabria | RC |
| Reggio nell'Emilia | RE |
| Rieti | RI |
| Rimini | RN |
| Roma | RM |
| Rovigo | RO |
| Salerno | SA |
| Sassari | SS |
| Savona | SV |
| Siena | SI |
| Siracusa | SR |
| Sondrio | SO |
| Taranto | TA |
| Teramo | TE |
| Terni | TR |
| Torino | TO |
| Trapani | TO |
| Trento | TN |
| Treviso | TV |
| Trieste | TS |
| Udine | UD |
| Varese | VA |
| Venezia | VE |
| Verbania | VB |
| Vercelli | VC |
| Verona | VR |
| Vibo Valentia | VV |
| Vincenza | VI |
| Viterbo | VT |
| Mexico State | Abbreviation |
|---|---|
| Aguascalientes | AGS |
| Baja California Norte | BCN |
| Baja California Sur | BCS |
| Campeche | CAM |
| Chiapas | CHIS |
| Chihuahua | CHIH |
| Coahuila | COAH |
| Colima | COL |
| Distrito Federal | DF |
| Durango | DGO |
| Guanajuato | GTO |
| Guerrero | GRO |
| Hidalgo | HGO |
| Jalisco | JAL |
| Mexico | MEX |
| Michoacan | MICH |
| Morelos | MOR |
| Nayarit | NAY |
| Nuevo Leon | NL |
| Oaxaca | OAX |
| Puebla | PUE |
| Queretaro | QRO |
| Quintana ROO | QROO |
| San Luis Potosi | SLP |
| Sinaloa | SIN |
| Sonora | SON |
| Tabasco | TAB |
| Tamaulipas | TAMPS |
| Tlaxcala | TLAX |
| Veracruz | VER |
| Yucatan | YUC |
| Zacatecas | ZAC |
| The Netherlands Province | Abbreviation |
|---|---|
| Drenthe | DR |
| Flevoland | FLD |
| Friesland | FR |
| Gelderland | GLD |
| Groningen | GN |
| Lemburg | LB |
| North Brabant | NB |
| North Holland | NH |
| Overijssel | OV |
| South Holland | ZH |
| Utrecht | UT |
| Zeeland | SLD |
| Potential Frivolous Arguments for Examination Review | |
|---|---|
| Alleged Churches/First Amendment | Income from non-religious sources and may claim a vow of poverty. |
| Altered Form | Altering any or all line items with the intent of facilitating non-compliance with the tax laws. |
| Altered Jurat/UCC 1-207 | Return contains income and deductions but the jurat has been altered or stricken. May include reference to UCC 1-207 or a statement that the return was not signed under penalties of perjury. |
| Amended Returns/Form 843 Claim | Amended return or a Form 843 filed to obtain a total refund of all taxes paid in prior years, based on a tax avoidance argument. |
| C-Filings | This frivolous position includes the following four categories: a) Files a return claiming various types of deductions, credits or overpayments/refunds that have no relation to reality and because of their outrageous character, qualify as frivolous returns. b) Files a return containing the filers identifying information but does not request a refund, often lacking sufficient information to determine a tax liability. c) Files a return with various types of rambling dialogue and/or crazy arguments that no one could reasonably view as a good faith attempt to comply with the law. d) Files a return that attempts to send some type of message or protest to the IRS, but fails to include sufficient identifying information for the Service to either determine the identity of the taxpayer or correspondent or return address. |
| Challenges to Authority/Due Process | Questions various administrative authorities such as delegation orders, summons authority, privacy act, etc. Argues that they must be afforded a hearing or a trial before taxes can be assessed or before property can be seized. |
| Challenges to Authority/Title 26 or "law" in Other Documents | Argues that Title 26 of the United States Code is not law because it was never enacted as named |
| Collections Issues | Files frivolous documents contending that various collections issues are invalid (e.g., Offers in Compromise, Collection Due Process Requests, Installment Agreements, Appeals Requests, etc.) because they are not filed and/or signed by someone with delegated authority. They may have no certificate of assessment attached, do not comply in form or content with a State or Local law, are not in a certain format or lack a valid OMB (Office of Management and Budget) number or other frivolous positions. |
| Disclaimer | Submits a disclaimer stating, "disclaims the liability for the tax due" , making the liability on the return zero. |
| Fifth Amendment | Assertion of the Fifth Amendment right against self-incrimination as a basis for not providing any financial information. |
| Foreign Income | Argues that United States citizens and residents are not subject to tax on their wages or other income derived from sources within the United States, as only foreign-based income or income received by nonresident aliens and foreign corporations from sources within the United States is taxable. |
| Form 1099-OID (Original Issue Discount) |
An individual files a return reporting false amounts of income (generally "Other" or "Miscellaneous" income) and all of them claim a false amount of income tax withholding approximately equal to the amount of falsely reported income. Although the returns report income, they do not calculate any tax due. Some of the returns have Form 1099-OID (Original Issue Discount) attached and some have Forms 1096. Other false financial instruments may be filed in the place of or in addition to the Forms 1099-OID such as Form 2439, promissory notes, bonds, sight drafts, etc. |
| IRC 861 Business Employment Tax (BMF 861) |
Argument targets employers and advises them that wages are exempt from withholding. Based on 26 CFR Section 1.861, promoters of this scheme advise employers to stop withholding and paying payroll taxes on their employee's wages. In addition, some employers file amended payroll tax returns and request refunds of previously paid payroll taxes. |
| IRS is a Private Organization/Collects Tribute, Not Taxes | Argues that the IRS is an entity named the Internal Revenue and Tax Service, Inc., which was incorporated in Delaware in 1933, it is a collection agency for the Federal Reserve Bank, or is part of the United Nations and is clandestinely leading the tax-paying public into a "new world order" . |
| Not a Person | Argues that a taxpayer is not a "person" within the meaning of IRC Section 7701(a)(14). |
| Obscene, Vulgar, Harassing | Submits documents or other materials indicating that non-filing is due to dissatisfaction with tax policies or taxation in general. Often, this argument is expressed with obscene, vulgar, or crude language and characters in an extremely demeaning manner. |
| Protest Against Government Action/Inaction | Argues that refusal to file or pay is justified because they disagree with government policies or spending plans. |
| Sixteenth Amendment | Argues the Sixteenth Amendment was not properly ratified and therefore the federal government does not have the legal authority to collect an income tax without apportionment. |
| Straw Men | Argues the government has created an entity separate and distinct from the taxpayer - a "straw man" and any tax obligations are exclusively those of the "straw man" . |
| Taxes are Voluntary/Law Does Not Require | Submits a return, amended return or correspondence that argues income taxes are voluntary. |
| U.S. v. Long | Submits a return with zero money amounts. To explain the zeros inserted on the form, the individual references "U.S. vs. Long" . |
| Unsigned Returns | The individual completes a return but fails to sign, a statement indicating disagreement with the tax system is attached or added to the return. |
| Valuation | Income is not taxable because of the declining fair market value of the dollar, because the dollar is not backed by gold/silver, because the value of services is offset by the value of the labor (barter income), etc. |
| Zero Returns | Submits a return with zero money amounts on all or most of the line items on the form (e.g., IRC §861, Forms 2439, OID and
other BMF filings that claim no income and request refunds). See Revenue Ruling 2004-34. A statement is attached claiming
there is no section of the Internal Revenue Code that established an income tax liability. The statement may also contain
arguments regarding the definition of income. There are several variations on this type of filing such as those bearing the
words "nunc pro tunc"
and "not liable"
.
Note:≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ |
| Other | All others including those listed in Notice 2008-14 or any subsequent superseding Notice. This category includes non-filer
accounts resulting from initial compliance check such as cross-reference TINs.
Note:Frivolous arguments citing "Collection Due Process" (CDP) should be reviewed by Collections for possible referral to Appeals. Refer to IRM 5.19.8, Collection Appeal Rights Procedures, for additional information. |