3.12.220  Error Resolution System for Excise Tax Returns (Cont. 1)

3.12.220.2 
Priority I AC Errors

3.12.220.2.2 
Suspense Inventory Correction Procedures (Reject Procedures)

3.12.220.2.2.20  (01-01-2015)
AC 3XX

  1. Priority I Error, AC 3XX, Status 33X:

    1. If requested information is not available, the tax examiner will need to resuspend the record with AC 3XX. Should this occur often, the suspense period should be reviewed with HQ.

    2. Should the document not be available for a record on the Workable Suspense Inventory, other than AC 510, the Suspended Document File Unit will contact the Supervisor. They will conduct a special search within ERS to find the missing document.

    If: Then:
    Cannot locate document. Notate document is missing, resuspend the record with AC 511, and initiate a Form 4251, Return Charge-Out, to obtain the document from Files.
    Form 4251 comes back without the document. Wait until the suspense period for AC 511 expires, resubmit the original Form 4251 indicating on it "Special Search" and resuspend with AC 512.

3.12.220.3  (01-01-2015)
Priority II Section Error

  1. The two types of Priority II Errors are Distributed Input System/Integrated Submission and Remittance Processing (DIS/ISRP) and TERMINUS.

3.12.220.3.1  (01-01-2015)
DIS/ISRP Error

  1. This is an error detected by DIS/ISRP.

  2. The display will include the code identifying the type of error.

    1. Code "1" is a Split screen transmission, Key Verifier changed 4 or more digits of a TIN or the Original Entry Operator entered required section as missing.

    2. Code "2" is not used at this time.

    3. Code "3" Invalid section ending point.

    4. Code "4" Invalid field length.

    5. Questionable section (see 3 below).

  3. Questionable section:

    1. The DIS/ISRP operator input the same section more than once or entered the same section out of sequence.

    2. The computer program will drop all duplicate sections and display the first one encountered.

  4. When displayed, this type of error will display all input fields except for the Remittance in Section 01 of the section in error. Transcribed data will be present. Computer generated data will not be present.

  5. Correction Procedures:

    Check all fields of the section when this condition exists verifying that the fields are entered as coded.

    If: Then:
    No correction is needed. Transmit.
    Once the section is correct. Transmit.
    Section needs to be deleted. Enter CC DLSEC with the section number.

3.12.220.3.2  (01-01-2015)
TERMINUS Error

  1. This error is caused by a section with variable length input fields containing an erroneous size field.

  2. When displayed, this type of error will show all input fields of the terminus section. Transcribed data will be present. Computer generated fields or Remittance Field for Section 01 will not be present.

  3. All fields present for the section must be examined and the necessary correction(s) made to all the fields.

  4. Correction Procedures:

    If: Then:
    Section needs to be deleted Use CC DLSEC to delete
    No corrections are needed The display can be transmitted, this indicates the section is correct as displayed

3.12.220.4  (01-01-2015)
Processing Form 720

  1. The processing of the Form 720 is centralized at the Cincinnati Submission Processing Center. All Form 720s should be forwarded to this center for processing.

  2. The Form 720 is filed quarterly, unless the Service requires the taxpayer to file monthly or semimonthly.

  3. Prior Quarter Revisions:

    1. The return changes often, usually as a result of legislation affecting excise taxes.

    2. If the taxpayer files a prior revision of Form 720 and it is for the current year, correspond for current revision using local procedures.

  4. There are two new items reportable on Form 720 beginning in tax year 2013. The Medical Devices tax and the Patient Centered Outcomes Research (PCOR) fee.

    • The Medical Devices tax was enacted by Public Law (PL) 111-152, Health Care and Education Reconciliation Act, IRC Section 4191. This tax will be reported quarterly starting with the first quarter 2013 Form 720 and continue quarterly thereafter. IRS Number 136 has been created to capture this tax and Credit Reference Number 438 has been created to capture any related Schedule C, Medical Devices credits.

    • The PCOR fee was created by PL 111-148, Affordable Care Act (ACA), IRC Section 6301. This fee will be reported annually, beginning with the second quarter 2013 Form 720 and continue to be reported annually on second quarter Form 720 only. IRS Number 133 has been created to capture this fee and Credit Reference Number 439 has been created to capture any related Schedule C, PCOR credits.

    Note:

    IRS Number 136 must be present in Section 02 (last occurrence) and IRS Number 133 must be present in Section 03 (first occurrence). CRNs 438 and 439 have no special processing requirements and will be treated like most other CRNs.

3.12.220.4.1  (01-01-2015)
Form 720 Sections and Fields

  1. Form 720 contains Sections 01 through 07.

  2. All money fields are entered in dollars and cents. If the money amount on a return exceeds the maximum field length allowable, enter CC SSPND 611. Follow the procedures in IRM 3.12.220.1.26, Dummy Return for Overflow Money Amounts Prepared by Rejects, DO NOT SEND A TPNC.

  3. IRS Number (Abstract Number):

    1. If only one number is reported, it will be displayed alone as Field 01 NUM.

      Exception:

      IRS Numbers 108, 109, and 113 must be entered in Section 02 occurrences 02N22, 02N23, and 02N24 respectively. IRS Number 136 must be Section 02 last occurrence 02N25. IRS Number 133 must be Section 03 first occurrence 03N01.

    2. If more than one IRS Number is present, Field 01 NUM will be blank and Section 02 and/or 03 will be used. Section 04 is an address section.

      Note:

      Form 720, Part I IRS Numbers will be in Section 02 and Part II IRS Number will be in Section 03.

    3. Although the IRS Number field length was expanded to three digits the TE is NOT required to enter a zero (0) preceding the two digit IRS Number.

  4. The due dates for most IRS Numbers on the current revision of Form 720 are as follows:

    IRS Number Tax Period Period Ending Due Date Delinquent
    All IRS Numbers 201412 12/31/14 01/31/15 ≡ ≡ ≡ ≡
      201503 03/31/15 04/30/15 ≡ ≡ ≡ ≡ ≡
      201506 06/30/15 07/31/15 ≡ ≡ ≡ ≡
      201509 09/30/15 10/31/15 ≡ ≡ ≡ ≡
      201512 12/31/15 02/02/16 ≡ ≡ ≡ ≡

3.12.220.5  (01-01-2015)
Section 01, 02, 03, and 04 Priority III Field Errors Form 720

  1. Any field that does not meet the requirements for that field will be shown as Priority III Errors. Reasons are:

    • Non-alphabetical character in an alpha field

    • Blank space in a numeric field

    • Blank in the first position of an alpha field

    • Non-numeric character in a numeric field

    • A required field is blank

  2. This section lists the fields, errors and correction procedures.

    1. All fields will be displayed in the order encountered in the record.

    2. The AC and TPNC will never be displayed as Priority III Error.

  3. If an entry of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present on Form 720, Part I, line 1 (Total Line), Schedule A, Excise Tax Liability, must be attached.

    If not attached, correspond for Schedule A and use CC SSPND with AC 211. If no reply, edit CCC 3 and continue processing.

    Exception:

    One Time filers.

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present in Field 0104, Schedule C, Claims, must be attached and edited by Excise Operations.

    If not attached, let the Excise Operations Classifier see the return, and then correspond for Schedule C. CC SSPND with AC 211.

    Field Designator Field Length Title of Field Location on Return
    RMIT 11 Remittance (non-correctable) Green Written Entity
    01NC 4 Name Control Entity Portion
    01EIN 9 Employer Identification Number Entity Portion
    01PIC 1 Penalty and Interest Code Right of IRS use box
    01NUM 3 IRS Number Part I, and II
    01TXP 6 (YYYYMM) Tax Period Entity Portion
    01CCC 10 Condition Codes Left of IRS use box
    01ARN 1 Applied Refund Indicator Boxes below line 10
    01Q01 9 IRS Tire Tax Count 1 Left of the tax amount reported for IRS Number 108, 109, and/or 113
    01Q02 9 IRS Tire Tax Count 2 Left of the tax amount reported for IRS Number 108, 109, and/or 113
    01Q03 9 IRS Tire Tax Count 3 Left of the tax amount reported for IRS Number 108, 109, and/or 113
    01Q04 9 CRN Tire Credit Count 1 Schedule C Line 15, Other Claims
    01Q05 9 CRN Tire Credit Count 2 Schedule C Line 15, Other Claims
    01Q06 9 CRN Tire Credit Count 3 Schedule C Line 15, Other Claims
    01Q10 15 MEDIV-SALES Medical Devices Sales Price to the left of IRS Number 136
    01Q15 10 SHIP-LIVES PCOR Specified Health Insurance Plans average number of lives reported in the middle of Form 720 to the left of IRS Number 133.
    01Q16 15 SHIP-AMT (Fee) PCOR Specified Health Insurance Plans column (c) to the left of IRS Number 133.
    01Q17 10 ASIHP-LIVES PCOR Applicable Self-Insured Health Plans average number of lives in the middle of Form 720 to the left of IRS Number 133.
    01Q18 15 ASIHP-AMT (Fee) PCOR Applicable Self-Insured Health Plans column (c) to the left of IRS Number 133.
    01RCD 8 (YYYYMMDD) Received Date Middle of Return
    01CAF 1 CAF Indicator Code and Edit will no longer edit this field
    01CRD 8 (YYYYMMDD) Correspondence Received Date Entity Portion

    Code and Edit will no longer edit this field
    0103 13 Total Tax Taxpayer Line 3
    0104 10 Adjustment Credit Line 4
    0108 11 FTD Credit Taxpayer Line 8
    01B/R 11 Balance Due or Overpayment Taxpayer Line 10 or 11
    01FD 10 FTD Penalty Taxpayer Top Right Penalty Box
    01CBI 1 Designee —Checkbox Indicator Next to signature area
    01CBP 5 Designee Checkbox PIN Located below the Designee Checkbox
    01PSN 9 (a "P" and 8 numerical characters) Paid Preparer's Tax Identification Number (PTIN) Located on the right hand side below the signature area
    01PEN 9 Paid Preparer EIN Located on the right hand side below the signature area under the Preparer's SSN or PTIN
    01PTN 10 Paid Preparer's Telephone Number Located below the Preparer's EIN

3.12.220.5.1  (01-01-2015)
Field 01NC Name Control

  1. Description: Field 01NC is located in the Entity Section.

  2. Valid Condition: Field 01NC has four positions and the valid characters are alpha, numeric, hyphen, ampersand and blank.

  3. Invalid Condition: The Name Control Field is invalid if:

    • The first position is not alpha or numeric.

    • The second, third or fourth position is not an alpha, numeric, hyphen, ampersand or blank.

    • There are any intervening blanks between significant characters.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Enter the Name Control.

3.12.220.5.2  (01-01-2015)
Field 01EIN Employer Identification Number

  1. Description: Employer Identification Number (EIN) - 9 positions

    1. Located in the Entity Section on the return.

    2. Assigned by IRS for identification of a business tax account.

  2. Invalid Conditions:

    • Not all numeric

    • Less than nine characters

    • The first two digits are 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 69, 70, 78, 79, or 89

    • All zeros or all nines

  3. Correction Procedures:

    Note:

    Check the field with the return to see if the EIN was transcribed correctly.

    If: Then:
    Not entered correctly. Enter the correct EIN.
    Entered correctly and a correct number can be determined. Search for another valid EIN on the return or attachments and enter the correct number.
    Entered correctly and a correct number cannot be determined. Research using CC NAMEE, CC NAMEB for the correct number.
    If more than one number is found or if a valid EIN cannot be determined, CC SSPND 320 for referral to Entity Control.
    Taxpayer used an SSN. Research SSN to see if there is a cross reference EIN.
    If unable to determine a valid EIN, CC SSPND 320 for referral to Entity Control.

    Note:

    If the EIN is changed from the one the taxpayer used by 4 or more numbers, issue Letter 3875C, Missing or Incorrect EIN on Return, as a non-suspense letter to the address on the return.

  4. Reject Correction:

    If: Then:
    Entity Control finds the correct EIN. Enter it in Field 01 EIN.
    Entity Control assigns an EIN. Enter it in Field 01EIN and enter the entity assignment date found in the lower left hand corner of the return, in field 01CRD.

3.12.220.5.3  (01-01-2015)
Field 01PIC Penalty and Interest Code

  1. Description: Penalty and Interest Code (PIC) - 1 position:

    1. Located to the right of the Penalty and Interest box in the Entity Section.

    2. The Penalty and Interest Code is used to alert the computer to perform a computation for penalty and interest when it would not normally do so.

  2. Invalid Condition: Entry other than 1 or blank.

  3. Correction Procedures: Check to see if there was a transcription error.

    If: Then:
    Error found. Change the field to the correct entry.
    Code 1 is used when precomputed delinquency penalty and/or interest is shown in the Penalty and Interest box and the return is received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
    Code is not appropriate. Delete the field.

3.12.220.5.4  (01-01-2015)
Field 01NUM IRS Number

  1. Description: IRS Number - 3 positions (Form 720 IRS No. column):

    • Located in Part I and II of the return

    • Also referred to as the abstract number field

    • Identifies a particular excise tax

    • Enables the money collected to be assigned to a specific trust fund, if any

  2. Invalid Conditions:

    • Not all numeric

    • Not in the IRS Number/Tax Table

  3. Correction Procedures: Compare the screen entry with the entries on the return.

    If: And: Then:
    Field was transcribed incorrectly.   Correct the screen display.
    IRS Number cannot be determined from the information on the return or attachments and the tax liability is. Less than ≡ ≡ ≡ ≡ ≡ ≡ . Enter IRS Number 80.
    IRS Number cannot be determined from the information on the return or attachments and the tax liability is. ≡ ≡ ≡ ≡ ≡ more. Enter CCC Z and IRS Number 80.
    A secured or prepared return.   CC SSPND 640.
    Attach Form 10886, with explanation and route the return to the originating compliance function.

    Note:

    Do not use CCC Z.

    Note:

    When a tax examiner assigns IRS Number 80 it generates a Computer Paragraph (CP) 183, No Breakdown of Liability By Abstract Number on Form 720, to the taxpayer and requests them to furnish a breakdown of the reported tax liability by IRS number.

3.12.220.5.5  (01-01-2015)
Field 01TXP Tax Period

  1. Description: Tax Period (6 positions):

    • Located in Entity Section of the return

    • Consists of a tax year followed by the quarter ("YYYYMM" ).

      Example:

      The third quarter of 2014 would be "201409"

  2. Invalid Condition:

    • Not all numeric

    • Later than the current processing quarter

    • All blank

  3. Correction Procedures: Check the field with the return and attachments to see if the Tax Period was transcribed correctly.

    If: Then:
    Not entered correctly. Correct the screen.
    Cannot be determined. Process as a current quarter return.
    Return for Non-ADP tax period. Use CC RJECT or CC SSPND with AC 620.
    Multiple tax periods. Correspond with taxpayer and suspend with AC 211.
    Monthly return. Suspend it with AC 343 and attach Form 10886 to route to Accounting.
    Current month is before the beginning of the tax period. CC SSPND 480 and attach Form 10886 notating "Early filed, hold for processing" . This includes "Early Filed Final" returns.

3.12.220.5.6  (01-01-2015)
Field 01CCC Computer Condition Code

  1. Description: Computer Condition Codes (10 positions):

    1. Located in the Entity Section of the return.

    2. Used to identify a special condition or computation for the computer.

    3. See IRM 3.12.220.1.13, Computer Condition Codes, or Document 6209, IRS Processing Codes and Information, for a description of the codes and their use.

  2. Invalid Conditions:

    1. Entry is other than C, D, E, F, G, J, L, O, R, S, W, X, Z, 4, or 3.

    2. CCC G is present with any other CCC except W and/or 3.

    3. CCC E and F are both present.

    4. CCC E and S are both present.

    5. CCC 4 is present with CCC C and/or R and/or Z.

  3. Correction Procedures: Check the CCC on the return with the screen to see if they were transcribed incorrectly.

    If: Then:
    Transcribed incorrectly. Enter correct code(s). Otherwise, delete the code(s).
    Other CCCs are present with the W, G, and 3 Codes. Delete the other codes, except CCC W and/or 3 if CCC G is correct.
    CCC G is not correct. Delete it and leave the other codes.
    Both CCCs E and F are present then determine which is correct. Delete the other code(s).
    Both CCCs E and S are present.
    1. Determine which is correct.

    2. Delete the other.

    CCC 4 is present with CCC C
    and/or R and/or Z.
    1. Determine which is correct.

    2. Delete the other.

    Note:

    CCCs E and S are generated in Field 01CCC base on the Applied Refund Indicator.

3.12.220.5.7  (01-01-2015)
Field 01ARN Applied Refund Indicator

  1. Description: Applied Refund Indicator (1 position):

    1. Located in Part III below line 11.

    2. Used to indicate that the taxpayer has requested an overpayment of $1.00 or more be either refunded or credit elected.

    3. If there is an amount on line 11 then one or both of the boxes must be checked.

  2. The appropriate codes are:

    1. "Blank" box titled "Applied to your Next Return" is checked or both or neither boxes are checked.

    2. "2" box titled "Refunded" is checked.

  3. Invalid Condition: occurs if field is not blank or "2" .

    1. Applied Refund Indicator "blank" generates CCC E (if CCC F is not present) or S (if CCC F is present).

    2. Applied Refund Indicator "2" generates CCC S.

  4. Correction Procedures:

    Compare the screen entry with the boxes below line 11.

    If: Then:
    Invalid code is present. Correct the entry.
    Overpayment of $1.00 or more and both or neither of boxes are checked and CCC E is not present in Field 01CCC. Blank Field 01ARN.

3.12.220.5.8  (01-01-2015)
Field 01Q01 - IRS Tire Tax Count 1

  1. Description: IRS Tire Count 1

    1. Located in Part I by IRS Numbers 108, 109, and 113.

    2. Used to indicate the number of tires for which the taxpayer is paying tax.

  2. Invalid Condition:

    • There is a significant IRS tax amount for numbers 108, 109, and/or 113 (field 02T22, 02T23, and/or 02T24) and IRS Tire Count 1 is zero or blank.

  3. Correction Procedures:

    • Compare the screen entry with the entries on IRS numbers 108, 109, and 113.

      If: Then:
      There is a significant tax amount for IRS Number 108, 109, and/or 113 (field 02T22, 02T23, and/or 02T24) Enter the number of tires in field 01Q01, 01Q02, and/or 01Q03 as appropriate.

3.12.220.5.9  (01-01-2015)
Field 01Q02 - IRS Tire Tax Count 2

  1. Description: IRS Tire Count 2

    1. Located in Part I by IRS Numbers 108, 109, and 113.

    2. Used to indicate the number of tires for which the taxpayer is paying tax.

  2. Invalid Condition:

    • There is a significant IRS tax amount for numbers 108, 109, and/or 113 (field 02T22, 02T23, and/or 02T24) and IRS Tire Count 2 is zero or blank.

  3. Correction Procedures:

    • Compare the screen entry with the entries on IRS numbers 108, 109, and 113.

      If: Then:
      There is a significant tax amount for IRS Number 108, 109, and/or 113 (field 02T22, 02T23, and/or 02T24). Enter the number of tires in field 01Q01, 01Q02, and/or 01Q03 as appropriate.

3.12.220.5.10  (01-01-2015)
Field 01Q03 - IRS Tire Tax Count 3

  1. Description: IRS Tire Count 3

    1. Located in Part I by IRS Numbers 108, 109, and 113.

    2. Used to indicate the number of tires for which the taxpayer is paying tax.

  2. Invalid Condition:

    • There is a significant IRS tax amount for numbers 108, 109, and/or 113 (field 02T22, 02T23, and/or 02T24) and IRS Tire Count 3 is zero or blank.

  3. Correction Procedures:

    • Compare the screen entry with the entries on IRS numbers 108, 109, and 113.

      If: Then:
      There is a significant tax amount for IRS Number 108, 109, and/or 113 (field 02T22, 02T23, and/or 02T24) Enter the number of tires in field 01Q01, 01Q02, and/or 01Q03 as appropriate.

3.12.220.5.11  (01-01-2015)
Field 01Q04 - CRN Tire Credit Count 1

  1. Description: CRN Tire Count 1

    1. Located on Schedule C Line 15 "Other Claims" .

    2. Used to indicate the number of tires for which the taxpayer is claiming a credit.

  2. Invalid Condition:

    • There is a significant Credit Reference Number (CRN) credit amount for numbers 396, 304, and/or 305 (field 06T19, 06T20, and/or 06T21) and CRN Tire Count 1 is zero or blank.

  3. Correction Procedures:

    • Compare the screen entry with the entries on Schedule C Line 15 CRN 396, 304, and/or 305.

      If: Then:
      There is a significant credit amount for CRN 396, 304, and/or 305 (field 06T19, 06T20, and/or 06T21) Enter the number of tires in field 01Q04, 01Q05, and/or 01Q06 as appropriate.

3.12.220.5.12  (01-01-2015)
Field 01Q05 - CRN Tire Credit Count 2

  1. Description: CRN Tire Count 2

    1. Located on Schedule C Line 15 "Other Claims" .

    2. Used to indicate the number of tires for which the taxpayer is claiming a credit.

  2. Invalid Condition:

    • There is a significant CRN credit amount for numbers 396, 304, and/or 305 (field 06T19, 06T20, and/or 06T21) and CRN Tire Count 1 is zero or blank.

  3. Correction Procedures:

    • Compare the screen entry with the entries on Schedule C Line 15 CRN 396, 304, and/or 305.

      If: Then:
      There is a significant credit amount for CRN 396, 304, and/or 305 (field 06T19, 06T20, and/or 06T21) Enter the number of tires in field 01Q04, 01Q05, and/or 01Q06 as appropriate.

3.12.220.5.13  (01-01-2015)
Field 01Q06 - CRN Tire Credit Count 3

  1. Description: CRN Tire Count 3

    1. Located on Schedule C Line 15 "Other Claims" .

    2. Used to indicate the number of tires for which the taxpayer is claiming a credit.

  2. Invalid Condition:

    • There is a significant CRN credit amount for numbers 396, 304, and/or 305 (field 06T19, 06T20, and/or 06T21) and CRN Tire Count 1 is zero or blank.

  3. Correction Procedures:

    • Compare the screen entry with the entries on Schedule C Line 15 CRN 396, 304, and/or 305.

      If: Then:
      There is a significant credit amount for CRN 396, 304, and/or 305 (field 06T19, 06T20, and/or 06T21) Enter the number of tires in field 01Q04, 01Q05, and/or 01Q06 as appropriate.

3.12.220.5.14  (01-01-2015)
Field 01Q10 - Medical Devices Sales Price (MEDIV-SALES)

  1. Description - Medical devices sales price.

    1. Located in Part I to the left of IRS Number 136 tax.

    2. Used to report the sales prices of medical devices subject to the tax.

  2. Invalid conditions:

    • MEDIV-SALES is not numeric.

  3. Correction procedure:

    • Ensure MEDIV-SALES is a numeric entry in dollars and cents.

    Note:

    If the return reflects 0 (zero), n/a, - , etc. for Medical Devices Sales Price, blank the field out.

3.12.220.5.15  (01-01-2015)
Field 01Q15 - Patient Centered Outcomes Research (PCOR) Specified Health Insurance Policies Average Number of Lives Covered (SHIP-LIVES)

  1. Description - Patient Centered Outcomes Research (PCOR) specified health insurance policies average number of lives covered.

    1. Located at the beginning of Part II, in the middle area of Form 720, to the left of IRS Number 133.

    2. Used to capture the number of lives covered by specified health insurance policies subject to the fee.

  2. Invalid conditions:

    • SHIP-LIVES is not numeric.

  3. Correction procedure:

    • Ensure SHIP-LIVES is a numeric whole number entry. If the taxpayer has entered a partial life, then apply traditional rounding. If .5 or greater round up and if less then .5 round down (e.g., if 100.5 lives are reported input 101 lives and conversely if 100.4 lives are reported input 100 for the number of lives).

  4. If the taxpayer files IRS Number 133 along with other IRS Numbers on the return and the tax period is other than the second quarter, prepare a dummy return for the fee reported under IRS Number 133 and process it as a second quarter return using CCC X. See IRM 3.12.38, BMF General Instructions, for more information concerning the preparation of dummy returns and procedures for applying payments correctly.

    Note:

    All PCOR fee must be processed to second quarter Form 720 accounts. When the tax period has not been clearly indicated on a Form 720 reporting IRS Number 133, PCOR, use the IRS received date to help determine the tax period. If the return was received December 31st or prior, process to the preceding 2nd quarter (i.e., Form 720 reporting IRS Number 133 received on December 31, 2014 process as 201406). If the return was received after December 31st, process to the subsequent 2nd quarter (i.e., Form 720 reporting IRS Number 133 received on January 2, 2015 process as 201506). If the payment for PCOR has been posted to the wrong tax period transfer the payment to the correct module (i.e., second quarter). If IDRS research reveals a return already posted to the second quarter treat the dummy PCOR return as an amended return using CCC G.

    Exception:

    If the taxpayer has filed a Form 720 for quarters 1, 3, and/or 4 and the PCOR fee being reported is zero, N/A, none, - (dash), etc. do not prepare a dummy return for the second quarter just to post the zero amount for PCOR fee. Delete the PCOR entry.

3.12.220.5.16  (01-01-2015)
Field 01Q16 - PCOR Specified Health Insurance Policies column (c) Fee (SHIP-AMT)

  1. Description - PCOR specified health insurance policies fee amount.

    1. Located to the left of IRS Number 133 fee under the column titled column (c).

    2. Used to capture the amount of fee attributable to PCOR specified health insurance policies.

  2. Invalid conditions:

    • SHIP-AMT is not numeric.

  3. Correction procedure:

    • Ensure SHIP-AMT is a numeric entry in dollars and cents.

  4. If the taxpayer files IRS Number 133 along with other IRS Numbers on the return and the tax period is other than the second quarter, prepare a dummy return for the fee reported under IRS Number 133 and process it as a second quarter return using CCC X. See IRM 3.12.38, BMF General Instructions, for more information concerning the preparation of dummy returns and procedures for applying payments correctly.

    Note:

    All PCOR fee must be processed to second quarter Form 720 accounts. When the tax period has not been clearly indicated on a Form 720 reporting IRS Number 133, PCOR, use the IRS received date to help determine the tax period. If the return was received December 31st or prior, process to the preceding 2nd quarter (i.e., Form 720 reporting IRS Number 133 received on December 31, 2014 process as 201406). If the return was received after December 31st, process to the subsequent 2nd quarter (i.e., Form 720 reporting IRS Number 133 received on January 2, 2015 process as 201506). If the payment for PCOR has been posted to the wrong tax period transfer the payment to the correct module (i.e., second quarter). If IDRS research reveals a return already posted to the second quarter treat the dummy PCOR return as an amended return using CCC "G" .

    Exception:

    If the taxpayer has filed a Form 720 for quarters 1, 3, and/or 4 and the PCOR fee being reported is zero, N/A, none, - (dash), etc. do not prepare a dummy return for the second quarter just to post the zero amount for PCOR fee. Delete the PCOR entry.

  5. If the amount in column (c) is less than the number of lives in column (a) and the amount in column (c) appears to be the rate for column (b) then calculate the fee for column (c) by multiplying column (a) by the implied rate for column (b) and enter in column (c).

3.12.220.5.17  (01-01-2015)
Field 01Q17 - PCOR Applicable Self-Insured Health Plans Average Number of Lives Covered (ASIHP-LIVES)

  1. Description - PCOR applicable self-insured health plans average number of lives covered.

    1. Located at the beginning of Part II, in the middle area of Form 720, to the left of IRS Number 133.

    2. Used to capture the number of lives covered by applicable self-insured health plans subject to the fee.

  2. Invalid conditions:

    • ASIHP-LIVES is not numeric.

  3. Correction procedure:

    • Ensure ASIHP-LIVES is a numeric whole number entry. If the taxpayer has entered a partial life then apply traditional rounding. If .5 or greater round up and if less then .5 round down (e.g., if 100.5 lives are reported input 101 lives and conversely if 100.4 lives are reported input 100 for the number of lives.).

  4. If the taxpayer files IRS Number 133 along with other IRS Numbers on the return and the tax period is other than the second quarter, prepare a dummy return for the fee reported under IRS Number 133 and process it as a second quarter return using CCC X. See IRM 3.12.38, BMF General Instructions, for more information concerning the preparation of dummy returns and procedures for applying payments correctly.

    Note:

    All PCOR fee must be processed to second quarter Form 720 accounts. When the tax period has not been clearly indicated on a Form 720 reporting IRS Number 133, PCOR, use the IRS received date to help determine the tax period. If the return was received December 31st or prior, process to the preceding 2nd quarter (i.e., Form 720 reporting IRS Number 133 received on December 31, 2014 process as 201406). If the return was received after December 31st, process to the subsequent 2nd quarter (i.e., Form 720 reporting IRS Number 133 received on January 2, 2015 process as 201506). If the payment for PCOR has been posted to the wrong tax period transfer the payment to the correct module (i.e., second quarter). If IDRS research reveals a return already posted to the second quarter treat the dummy PCOR return as an amended return using CCC "G" .

    Exception:

    If the taxpayer has filed a Form 720 for quarters 1, 3, and/or 4 and the PCOR fee being reported is zero, N/A, none, - (dash), etc. do not prepare a dummy return for the second quarter just to post the zero amount for PCOR fee. Delete the PCOR entry.

3.12.220.5.18  (01-01-2015)
Field 01Q18 - PCOR Applicable Self-Insured Health Plans column (c) Fee (ASIHP-AMT)

  1. Description - PCOR applicable self-insured health plans fee amount.

    1. Located to the left of IRS Number 133 fee under the column titled column (c).

    2. Used to capture the amount of fee attributable to PCOR applicable self-insured health plans subject to the fee.

  2. Invalid conditions:

    • ASIHP-AMT is not numeric.

  3. Correction procedure:

    • Ensure ASIHP-AMT is a numeric entry in dollars and cents.

  4. If the taxpayer files IRS Number 133 along with other IRS Numbers on the return and the tax period is other than the second quarter, prepare a dummy return for the fee reported under IRS Number 133 and process it as a second quarter return using CCC X. See IRM 3.12.38, BMF General Instructions, for more information concerning the preparation of dummy returns and procedures for applying payments correctly.

    Note:

    All PCOR fee must be processed to second quarter Form 720 accounts. When the tax period has not been clearly indicated on a Form 720 reporting IRS Number 133, PCOR, use the IRS received date to help determine the tax period. If the return was received December 31st or prior, process to the preceding 2nd quarter (i.e., Form 720 reporting IRS Number 133 received on December 31, 2014 process as 201406). If the return was received after December 31st, process to the subsequent 2nd quarter (i.e., Form 720 reporting IRS Number 133 received on January 2, 2015 process as 201506). If the payment for PCOR has been posted to the wrong tax period transfer the payment to the correct module (i.e., second quarter). If IDRS research reveals a return already posted to the second quarter treat the dummy PCOR return as an amended return using CCC "G" .

    Exception:

    If the taxpayer has filed a Form 720 for quarters 1, 3, and/or 4 and the PCOR fee being reported is zero, N/A, none, - (dash), etc. do not prepare a dummy return for the second quarter just to post the zero amount for PCOR fee. Delete the PCOR entry.

  5. If the amount in column (c) is less than the number of lives in column (a) and the amount in column (c) appears to be the rate for column (b) then calculate the fee for column (c) by multiplying column (a) by the implied rate for column (b) and enter in column (c).

3.12.220.5.19  (01-01-2015)
Field 01RCD Received Date

  1. Description: Received Date (8 positions):

    • Located on first page of return.

    • It is date stamped or edited on the return.

    • It is required when the return is delinquent, amended, has a CCC R, D, or G.

  2. Invalid Conditions:

    • Not in YYYYMMDD format

    • Later than the current processing date

    • Not within the valid month, day range

    Month of Year Valid Format Days in Month
    January 01 01-31
    February 02 01-28 (29 in Leap Year)
    March 03 01-31
    April 04 01-30
    May 05 01-31
    June 06 01-30
    July 07 01-31
    August 08 01-31
    September 09 01-30
    October 10 01-31
    November 11 01-30
    December 12 01-31
  3. Correction Procedures: Compare the screen entry to the entry on the return. If field was transcribed incorrectly, correct the screen entry.

  4. To determine the correct "Received Date" use the priority order listed below. If multiple dates are on the return then use the earliest date.

    1. Earliest legible postmark (e.g., U.S. Post Office, Foreign Postmark, or Private Delivery Service).

    2. Service Center Automated Mail Processing System (SCAMPS) digital date.

    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 minus 10 days.

    6. Current date minus 10 days.

3.12.220.5.20  (01-01-2015)
Field 01CAF Centralized Authorization File

  1. Description - Centralized Authorization File (CAF) - 1 position

    1. Editing CAF code by Code and Edit is no longer required.

    2. Form 2848, Power of Attorney (POA) and Declaration of Representative and Form 8821, Tax Information Authorization (TIA), are forwarded to the Central Authorization File Unit (CAF) by the Code and Edit function.

3.12.220.5.21  (01-01-2015)
Field 01CRD Correspondence Received Date

  1. Description: Correspondence Received Date (8 positions):

    1. Located in the center bottom portion of the Entity area in "YYYYMMDD" format. However, Code and Edit is no longer required to edit the Correspondence Received Date to the return.

    2. Field 01CRD is used as a second date in computing interest on overpayments and may be used when correspondence is received back from the taxpayer or when ERS receives a return from Entity.

    3. If all the positions in the field are blank, it does not cause an invalid condition.

  2. Invalid Conditions:

    • Not numeric

    • Not in YYYYMMDD format

    • Not in the valid, month, day range (See IRM 3.12.38.5.1.6, Correspondence Received Date (CRD) - 8 Positions)

  3. Correction Procedures: Compare the screen entry with the entry on the return.

    If: Then:
    Date is illegible. Check the attached correspondence for the correct date.
    More than one correspondence received date is stamped or written. Use the earliest date as the CRD in YYYYMMDD format.
    No reply. Leave 01CRD blank and enter a CCC 3 in 01CCC field.

3.12.220.5.22  (01-01-2015)
Field 0103 Total Tax

  1. Description: Total Tax (13 positions):

    • Located in Part Ill on line 3 of return

    • This field is dollars and cents and is a positive figure

  2. Invalid Condition:

    • Not all numeric

    • Not Positive dollar figure

    • Not in dollars and cents

  3. Correction Procedures: Compare the screen entry with the entry on the return. If the field was transcribed incorrectly then correct the screen display.

3.12.220.5.23  (01-01-2015)
Field 0104 Adjustment Credit

  1. Description: Adjustment Credit: (13 positions):

    • Located in Part Ill on line 4 of return

    • Field is dollars and cents and a positive figure

  2. Invalid Condition:

    • Not all numeric

    • Not positive dollar figure

    • Not in dollars and cents

3.12.220.5.23.1  (01-01-2015)
Field 0104 Correction Procedures

  1. Compare the screen entry with the entry on the return.

    If: And: Then:
    Field was transcribed incorrectly.   Correct the screen display.
    Line 4 is ≡ ≡ ≡ ≡ ≡ ≡ less.   No action is necessary.
    Line 4 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ more. It does not appear that Excise Operations has reviewed line 4.
    1. Suspend 410.

    2. Have Excise Operations review line 4.

    Line 4 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ more and line 3 has no entry. Form 8849 is not attached, Edit zero and put IRS Number 80 on line 3 and X line 4 amount. Form 8849 must be filed to claim refund. Send TPNC to notify taxpayer.
    Form 8849 is attached, Suspend 640 to delete DLN and send to Excise for processing using Form 10886"Form 8849 and no tax on line 3"

3.12.220.5.24  (01-01-2015)
Field 0108 Federal Tax Deposit Credit

  1. Description: Federal Tax Deposit Credit (13 positions):

    • Located in Part III on line 8.

    • Field is dollars and cents and is always entered as a positive amount.

    • Amount represents the total federal tax deposited by the taxpayer for the liability during the quarter.

    • Credit may also include an overpayment from a previous quarter and a credit from a Form 720X, Amended Quarterly Federal Excise Tax Return.

  2. Invalid Condition:

    • Not all numeric.

    • Not positive dollar figure.

    • Not in dollars and cents.

  3. Correction Procedure: Compare the screen entry with the entry on the return. If the field was transcribed incorrectly, correct the screen display.

3.12.220.5.25  (01-01-2015)
Field 01B/R Balance Due/Overpayment

  1. Description: Balance Due/Overpayment (13 positions):

    • Located in Part III on line 10 or 11 of return

    • Field is dollar and cents and can be a positive or a negative

  2. Invalid Condition:

    • Not all numeric

    • Not in dollars and cents

  3. Correction Procedures: Compare the screen entry with the entry on the return.

    If: Then:
    Field was transcribed incorrectly. Correct the screen display.
    There is an overpayment. Entry will be negative.
    Return is a balance due. Entry will be positive.

3.12.220.5.26  (01-01-2015)
Field 01FD Federal Tax Deposit Penalty

  1. Description: Federal Tax Deposit Penalty (10 positions):

    • Located in the box to the right of the entity portion

    • Field is dollars and cents and is always entered as a positive amount

    • FD denotes the penalty line

  2. Invalid Condition:

    • Not all numeric

    • Not positive dollar figure

    • Not in dollars and cents

  3. Correction Procedures: Compare the screen entry with the entry on the return. If the field was transcribed incorrectly, correct the screen display.

3.12.220.5.27  (01-01-2015)
Field 01CBI - Designee Checkbox Indicator

  1. If the taxpayer checks the "Yes" box a "1" should be entered in the field.

  2. There are validity checks on the field, but the field is not correctable.

  3. Invalid Conditions: If the value is other than "1" or blank.

3.12.220.5.27.1  (01-01-2015)
Field 01CBI Correction Procedures

  1. Compare the screen display and the return.

    If: Then:
    The value is other than "1" or blank, Delete the field 01CBI and continue processing.

3.12.220.5.28  (01-01-2015)
Field 01CBP - Designee Checkbox PIN

  1. The Third Party Designee Identifying Number is comprised of any 5 alpha (i.e., "A" to "Z" ), numeric (e.g., "0" to "9" ), or any combination of characters chosen by the taxpayer. The field has no validity or consistency checks and is not correctable. The field is located on the right side below the designee checkbox.

  2. The Third Party Designee Identifying Number is only for the tax period of the return on which it appears and was chosen at random by the taxpayer or taxpayer's representative. On all future filings, the taxpayer can keep or change the PIN number.

3.12.220.5.29  (01-01-2015)
Field 01PSN - Paid Preparer's Tax Identification Number (PTIN)

  1. The Paid Preparer's PTIN is located on the right hand side below the taxpayer's signature. Data may or may not be present in Field 01PSN. Valid characters are all blank, all numeric, or with a "P" in the first character followed by eight numerics (a PTIN).

  2. The first character in the PTIN must begin with the alpha "P" . The range for a valid PTIN is P00000001 through P99999998. A "P" followed by all zeroes or all nines is not valid.

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

    • Field 01PSN is other than nine numeric digits.

    • Field 01PSN is all zeroes or all nines.

  4. Correction Procedure:

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

    2. If unable to determine a valid entry, delete Field 01PSN.

3.12.220.5.29.1  (01-01-2015)
Field 01PEN - Paid Preparer's EIN

  1. The Preparer's EIN is located below the PTIN on the right hand side.

  2. The Preparer's EIN must be a nine digit numeric number. The EIN cannot be all zeroes or all nines. Also, the first two digits must not be invalid for field 01EIN (see IRM 3.12.220.5.2, Field 01EIN Employer Identification Number).

3.12.220.5.30  (01-01-2015)
Field 01PTN - Paid Preparer's Telephone Number

  1. The Paid Preparer's Telephone Number is located on the right hand side below the Preparer's EIN.

  2. The Paid Preparer's Telephone Number should be shown as 10 characters. Only numerical characters (e.g., "0" through "9" ) are valid for this field.

    1. If the Paid Preparer's Telephone Number is incomplete, illegible, or less than 10 digits, review the return and attachments. If unable to determine a complete or legible Paid Preparer's Telephone Number, blank the field from the display.

    2. If the Paid Preparer's Telephone Number has more than 10 digits, only the first 10 digits will be captured.

3.12.220.5.31  (01-01-2015)
Fields 02T01 Through 02T25 Section 02 IRS Tax

  1. Description: IRS Tax - 12 positions:

    • Located in Part 1 of return

    • Field is dollars and cents and positive only

    Field Designator
    Field Length
    Title of Field Location on Return
    02T01 through 02T25 12 IRS TAX (first through twenty fifth) Form 720, Part I
  2. Invalid Condition:

    • Not all numeric

    • Not present

    • Not in dollars and cents

    • Not positive dollar figure

  3. Correction Procedures:

    1. If screen display shows Section 02 present, use CC GTSEC to verify screen entries.

    2. Compare the screen entries with the entries on the return. If a field was transcribed incorrectly, correct the screen display.

    3. Compare the screen entries with the entries on the return. If there is an entry on the return, correct the screen display.

    Note:

    If present, IRS Number 136 tax amount must be entered in Section 02 last occurrence 02T25. Section 02 Field 25 is dedicated to IRS Number 136 Medical Devices tax. No other IRS Numbers or tax are valid for this field.

3.12.220.5.32  (01-01-2015)
Fields 02N01 Through 02N25 Section 02 IRS Number

  1. Description: IRS Numbers (3 positions):

    • Located in Part 1 of return

    • IRS Numbers are also referred to as abstract numbers and identify a particular excise tax

    Field Designator Field Length Title of Field Location on Return
    02N01 through 02N25 3 IRS Number (first through twenty fifth) Form 720, Part I
  2. Invalid Condition: Not all numeric.

  3. Correction Procedures:

    1. If screen display shows Section 02 present, use CC GTSEC to verify screen entries.

    2. Compare the screen entries with the entries on the return. If a field was transcribed incorrectly, correct the screen display.

    3. Duplicate IRS Numbers will not cause a field error.

    Note:

    If present, IRS Number 136 must be entered in Section 02 last occurrence 02N25.

3.12.220.5.33  (01-01-2015)
Fields 03T01 Through 03T12 Section 03 IRS TAX

  1. Description: IRS TAX (12 positions):

    • Located in Part II of return

    • Field is dollars and cents and positive only

    Exception:

    IRS Numbers 108, 109, 113 and 136 cannot be in Section 03.

    Field Designator Field Length Title of Field Location on Return
    03T01 through 03T12 12 IRS Tax (first through twelfth) Form 720, Part II
  2. Invalid Condition:

    • Not all numeric

    • Not present

    • Not in dollars and cents

    • Not positive dollar figure

  3. Correction Procedures:

    1. If screen display shows Section 03 present, use CC GTSEC to verify screen entries.

    2. Compare the screen entries with the entries on the return. If a field was transcribed incorrectly, correct the screen display.

    3. Duplicate IRS Numbers will not cause a field error.

    4. Compare the screen entries with the entries on the return. If there is an entry on the return, correct the screen display.

    Note:

    If present, IRS Number 133 fee amount must be entered in Section 03 first occurrence 03T01. This field is dedicated to PCOR fee only. All other tax entries for Form 720 Part II taxes must begin in Section 03 field 02 and subsequent.

3.12.220.5.34  (01-01-2015)
Fields 03N01 Through 03N12 Section 03 IRS Number

  1. Description: IRS Number (3 positions):

    • Located in Part II of return

    • IRS Numbers are also referred to as abstract numbers and identify a particular excise tax

    Field Designator Field Length Title of Field Location on Return
    03N01 through 03N12 3 IRS Number (first through twelfth) Form 720, Part II
  2. Invalid Condition: Not all numeric.

  3. Correction Procedures:

    1. If screen display shows Section 03 present, use CC GTSEC to verify screen entries.

    2. Compare the screen entries with the entries on the return. If a field was transcribed incorrectly, correct the screen display.

    3. Duplicate IRS Numbers will not cause a field error.

    Note:

    If present, IRS Number 133 must be entered in Section 03 first occurrence 03N01.

3.12.220.5.35  (01-01-2015)
♦Field 04CON - "In Care of Name" ♦

  1. Description: Field 04CON is located in the Entity Section of the return.

  2. Valid Condition: Field 04CON has 35 positions and the valid characters are alpha, numeric, ampersand, dash, slash or percent.

  3. Invalid Condition: Field 04CON is invalid if any of the following conditions are present:

    • The first position is blank, or

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

    • There are two consecutive blanks between significant characters

  4. Correction Procedures:

    If: Then:
    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 04CON.

    The first character of the "in-care-of" 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 04CON.

    Two consecutive blanks are present between significant characters. Delete any unnecessary blanks in Field 04CON.

3.12.220.5.36  (01-01-2015)
♦Field 04FAD Foreign Address♦

  1. Description: Field 04FAD is located in the Entity Section of the return.

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

    2. Field 04FAD should not be present on CCC G Coded returns.

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

  3. Invalid Condition: Field 04FAD will generate as an error when any of the following conditions are present:

    1. The first position is blank.

    2. Any character follow two consecutive blanks.

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

    Note:

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

  4. Correction Procedures:

    1. Correct all coding and transcription errors.

      If: Then:
      Field 04FAD is present. Input CC GTSEC 04.

      Ensure Field 04CTY contains a foreign country code and Field 04ST contains a (period/space).
      A foreign address is not present on the return. Verify the address on the return is not a foreign address. Continue processing the return.
    2. If Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached to the return, compare the name and address information on the Form 8822 to the return.

    If: Then:
    The information is the same Take no action and continue processing.
    The information is different
    1. Detach Form 8822/Form 8822-B.

    2. Route to Entity Control on Form 10886 or follow local procedures.

    3. Notate on Form 10886, "CHANGE OF ADDRESS PER FORM 8822" .

    Note:

    The lead tax examiner is required to batch all Form 8822 and Form 8822-B daily and hand carry to Entity Control for expedited processing.

3.12.220.5.37  (01-01-2015)
Foreign Addresses General Information

  1. Cincinnati Submission Processing Campus (CSPC) will process foreign/international addresses and U.S. Possessions excise returns.

  2. The determination of a foreign/international address is based only on the address of the entity. A foreign address will contain:

    • Street Address or P.O. Box

    • City or town name

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

    • Postal code, if present

    • Foreign country

  3. A foreign (international) address is any address that is not in one of the 50 states or the District of Columbia. All U.S. Possessions are considered foreign.

    • American Samoa (AS)

    • Federated States of Micronesia (FM)

    • Guam GU)

    • Marshall Islands (MH)

    • Northern Mariana Islands (MP)

    • Palau (PW)

    • Puerto Rico (PR)

    • U.S. Virgin Islands (VI)

  4. Returns with addresses in the U.S. Possessions are considered to be a foreign excise return for processing purposes and are entered in the same way as domestic addresses.

    1. A two character alpha code must be entered in Field 04ST for the possession name.

      U.S. Possessions Abbreviation
      American Samoa AS
      Federated States of Micronesia FM
      Guam GU
      Marshall Islands MH
      Northern Mariana Islands MP
      Palau PW
      Puerto Rico PR
      Virgin Islands (U.S.) VI
    2. A ZIP Code must be present.

  5. An Army Post Office (APO), Diplomatic Post Office (DPO), or Fleet Post Office (FPO) is not a foreign address. They are considered domestic addresses. The Postal Service established new address requirements for APO/DPO/FPO addresses. If an address appears in the old APO/DPO/FPO format, such as "APO New York, NY 091XX" , convert to the new State code based on the ZIP Code as follows: "APO AE 091XX" .

    ZIP Code State Code
    340 AA
    090 - 098 AE
    962 - 966 AP
  6. All excise returns with a foreign address must be shipped to CSPC.

    1. CC SSPND 650.

    2. Attach Form 10886 with the notation "FORWARD TO CSPC" .

    3. Prepare Letter 86C to inform the taxpayer that the excise return has been sent to Cincinnati.

3.12.220.5.38  (01-01-2015)
Field 04ADD Street Address

  1. Description: Street Address (35 positions):

    • Located in the Entity Section of the return

    Field Designator
    Field Length
    Title of Field Location on Return
    04ADD 35 Street Address Entity Portion
  2. Invalid Condition:

    • Street address is present and the first position is blank

    • Any character is present other than alphabetic, numeric, blank, hyphen or slash

  3. Correction Procedures:

    Compare the screen entries with the entry on the return and attachments.

    If: Then:
    Field was transcribed incorrectly. Correct the screen display.
    Field cannot be perfected. Research IDRS using CC INOLE or local Campus procedures. If no data then delete Section 04.

3.12.220.5.39  (01-01-2015)
Field 04CTY City

  1. Description: City (22 positions):

    • Located in the Entity Section of the return

    • Certain cities in each state are designated as "Major Cities"

    • A special two alpha character has been assigned to them as Major City codes which represent that city and state (See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, and Exhibit 3.12.220-7U.S. Possessions, State Abbreviations and ZIP Codes).

    • DIS/ISRP will enter the major city code as appropriate

    • Is transcribed with no intervening blanks and no other characters in the City-State fields either before or after the code

    Field Designator Field Length Title of Field Location on Return
    04CTY 22 City Entity Portion
  2. Invalid Conditions:

    • Any character other than blank or alphabetic is present

    • City is present and the first position is blank

    • City is present and the second and third characters are blank

    • Any characters in field follow two consecutive blanks

    • An invalid Major City Code is present

    • Foreign country code is not present, incorrect or contains "XX" .

  3. Correction Procedures:

    1. Compare the screen entry with the entry on the return.

    2. Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries and see Exhibit 3.12.220-7, U.S. Possessions, State Abbreviations and ZIP Codes.

    If: Then:
    Field was transcribed incorrectly. Correct the screen display.
    Unable to perfect from the return or attachments. Research IDRS using CC INOLE or local procedures. If no data, delete Section 04 using CC DLSEC.
    City not on list of Major City Codes. Delete the code and enter the actual city and state data.
    A foreign address is shown on the return. Enter appropriate foreign country code in Field 04CTY (See Exhibit 3.12.220-8, Foreign Country Codes).

3.12.220.5.40  (01-01-2015)
Field 04ST State

  1. Description: State (2 positions):

    • Located in the Entity Section of the return

    Field Designator Field Length Title of Field Location on Return
    04ST 2 State Entity Portion
  2. Invalid Condition: Occurs if the entry is not shown in the table, Exhibit 3.12.220-7, U.S. Possessions, State Abbreviations and ZIP Codes, or listed in Document 7475, State Abbreviations, Major City Codes and Address Abbreviations.

  3. Correction Procedures:

    1. Check the field on the screen with the field on the return and attachments.

    2. Army Post Office (APO), Diplomatic Post Office (DPO), and Fleet Post Office (FPO) are not considered foreign addresses.

    3. The Postal Service established address requirements for APO/DPO/FPO addresses. If the entry appears incorrectly it must be corrected to a valid State Code abbreviation based on the ZIP Code (i.e., APO New York, NY 091 XX would convert to APO AE 091 XX). The valid APO/DPO/FPO addresses are shown in Exhibit 3.12.220-7, U.S. Possessions, State Abbreviations and ZIP Codes.

    If: Then:
    Field was transcribed incorrectly. Correct the screen display.
    Unable to perfect. Research IDRS using CC INOLE or local Campus procedures. If no data, delete Section 04.

3.12.220.5.41  (01-01-2015)
Field 04ZIP ZIP Code

  1. Description: ZIP Code (12 positions):

    • Located in the Entity Section of the return

    • Fields are numeric or blank

    • The valid range for the 10, 11, and 12 positions of the ZIP Code are all blank or all numeric

    Field Designator Field Length Title of Field Location on Return
    04ZIP 12 ZIP Code Entity Portion
  2. Invalid Condition:

    • Positions 6 through 9 of the ZIP Code are numeric and positions 10, 11, 12 are not all blank or numeric

    • Positions 6 through 9 are all blank and positions 10, 11, 12 are not all blank

  3. Correction Procedures: Check the field on the screen with the field on the return.

    If: Then:
    Field was transcribed incorrectly. Correct the screen display
    A valid ZIP Code is not available from the return or attachments.
    • Research IDRS.

    • Refer to Document 7475, State Abbreviations, Major City Codes (MCC) and Address Abbreviations, or Exhibit 3.12.220-7, U.S. Possessions, State Abbreviations and ZIP Codes, for a correct code.

    Only the first three digits of the ZIP Code can be determined. Enter 01 for the fourth and fifth digits.

3.12.220.5.42  (01-01-2015)
Fields 051A Through 053R and 05SRS Section 05 Schedule A

  1. Description: Schedule A Sections 1, 2, 3, and 4-13 positions:

    • Field entries in Section 1 will be designated as 051A through 051F and 05SRS.

    • Field entries in Section 2 will be designated as 053M through 053R and 05SRS.

    • Last two characters of the field designator correspond to the Section number and the alpha line identifier.

    • These may be either positive or negative.

    • Schedule A is located on Page 3 of Form 720.

  2. Invalid Condition: Not all numeric or zeros.

  3. Correction Procedures:

    1. Compare the screen entries with the entries on the Schedule A. If the field was transcribed incorrectly, correct the screen display.

    2. Delete if correct entry cannot be determined.

    Field Designator Field Length Title of Field Location on Return
    051A 13 14 - Day Rule 1st Mon (A) line Section 1
    051B 13 14 - Day Rule 1st Mon (B) line Section 1
    051C 13 14 - Day Rule 2nd Mon (C) line Section 1
    051D 13 14 - Day Rule 2nd Mon (D) line Section 1
    051E 13 14 - Day Rule 3rd Mon (E) line Section 1
    051F 13 14 - Day Rule 3rd Mon (F) line Section 1
    05SRS 13 Special Rule for September Section 1 or 2
    053M 13 Alternative Method -1st Mon (M) line Section 2
    053N 13 Alternative Method -1st Mon (N) line Section 2
    053O 13 Alternative Method -2nd Mon (O) line Section 2
    053P 13 Alternative Method -2nd Mon (P) line Section 2
    053Q 13 Alternative Method -3rd Mon (Q) line Section 2
    053R 13 Alternative Method -3rd Mon (R) line Section 2

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