3.12.220  Error Resolution System for Excise Tax Returns (Cont. 2)

3.12.220.5 
Section 01, 02, 03, and 04 Priority III Field Errors Form 720

3.12.220.5.43  (01-01-2014)
Fields 06T01 through 06T21 Section 06 Amount of Claim

  1. Description: CRN amount (13 positions)

    Located on Page(s) 1, 2, and/or 3 of Schedule C (i.e., Page(s) 4, 5, and/or 6 of Form 720).

    Note:

    CRNs and amounts from Schedule C are transcribed beginning with the first amount reported and carrying on throughout the form until Section 06 is full. If there are more amounts reported on Schedule C than Section 06 can accommodate any further amounts are then transcribed to Section 07.

    Field Designator Field Length Title of Field Location on Return
    06T01 through 06T21 13 Schedule C amount of claim Page(s) 1, 2, and/or 3 of Schedule C (i.e., Page(s) 4, 5, and/or 6 of Form 720).

  2. Invalid Condition: Not all numeric.

  3. Correction Procedures:

    1. If screen display shows Section 06 present, use 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.

3.12.220.5.44  (01-01-2014)
Fields 06N01 through 06N21 Section 06 CRN

  1. Description: Credit Reference Number (3 positions):

    • Located on Page(s) 1, 2, and/or 3 of Schedule C (Page(s) 4, 5, and/or 6 of Form 720).

      Note:

      CRNs 396, 304, and 305 must be displayed and corrected in Section 06 only and cannot be present in Section 07's screen display.

      Field Designator Field Length Title of Field Location on Return
      06N01 through 06N21 3 Schedule C Credit Reference Number (CRN) Page(s) 1, 2, and/or 3 of Schedule C (i.e., Page(s) 4, 5, and/or 6 of Form 720).

  2. Invalid Condition:

    • Not all numeric

    • Not in the CRN table

  3. Correction procedures:

    1. If screen display shows Section 06 present, use 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.

3.12.220.5.45  (01-01-2014)
Field 07T01 through 07T15 Section 07 Amount of Claim

  1. Description: CRN amount (13 positions)

    Located on Page(s) 1, 2, and/or 3 of Schedule C (i.e., Page(s) 4, 5, and/or 6 of Form 720).

    Note:

    Section 07 will be used once enough fields are transcribed to fill up Section 06.

    Field Designator Field Length Title of Field Location on Return
    07T01 through 07T15 13 Schedule C amount of claim Page(s) 1, 2, and/or 3 of Schedule C (i.e., Page(s) 4, 5, and/or 6 of Form 720).

  2. Invalid condition: Not all numeric.

  3. Correction procedures:

    1. If screen display shows Section 07 present, use 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.

3.12.220.5.46  (01-01-2014)
Fields 07N01 through 07N15 Section 07 CRN

  1. Description: Credit Reference Number (3 positions)

    Located on Page(s) 1, 2, and/or 3 of Schedule C (i.e., Page(s) 4, 5, and/or 6 of Form 720).

    Field Designator Field Length Title of Field Location on Return
    07N01 through 07N15 3 Schedule C Credit Reference Number Page(s) 1, 2, and/or 3 of Schedule C (i.e., Page(s) 4, 5, and/or 6 of Form 720).

  2. Invalid condition:

    • Not all numeric

    • Not in the CRN table

  3. Correction procedures:

    1. If screen display shows Section 07 present, use 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.

3.12.220.6  (01-01-2014)
Priority IV - 720 Consistency/Math Errors

  1. Consistency/Math Errors will be displayed with the Error Code assigned to them for the specific error in ascending numerical order.

  2. The blank field "NC" will be displayed for the entry of TPNCs for all Math Error displays, if needed.

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

    Note:

    The "C" Clear Code does not permit any other corrections to the error code after it is transmitted to clear the screen.

  4. All errors must be resolved by either eliminating the error, entering a Clear Code or entering a TPNC or SSPND the document with the appropriate AC.

3.12.220.6.1  (01-01-2014)
♦Error Code 001 - Tax Year - Invalid Entry♦

  1. Fields Displayed:

    Field Designator on Form 720 Field Name Field Length
    01NUM IRS Number 3
    01TXP Tax Period 6
    01CCC Computer Condition Code 10
    01RCD Received Date 8
    S02 Section 02  
    S03 Section 03  
    01RDD Return Due Date Generated  

  2. Invalid Conditions: Error Code 001 will generate when any of the following conditions is present.

    • Computer Condition Code "G" is Not Present - The processing date is equal to or more than 2 years and 9 months after the Return Due Date or Received Date (whichever is later) and CCC "W" is not present.

    • Computer Condition code "G" is Present - The processing date is equal to or more than 2 years and 9 months after the Return Due Date and CCC "W" is not present.

    • On any return, the processing date is less than 2 years and 9 months after the Return Due Date and CCC "W" is present.

  3. Correction Procedures:

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

    2. Do not send returns secured by Compliance (i.e., 6020(b)), any returns with a TC 59X, any returns that are Substitute for Return prepared by Examination ("SFR" in the margin) with Document 13133, Expedite Processing Cycle, attached, or any Dummy Telecommunication Returns prepared by Excise to Statute Control for clearance. Instead, enter W in Field 01CCC and on the return and continue processing.

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

      IF: THEN:
      Field 01RCD is blank. Enter the Received Date in Filed 01RCD. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .
      Determine the Received Date using the following priority:
      1. Stamped or hand written Received Date on the Return.

      2. Earliest legible postmark date of the U.S. Post Office, Foreign Postal Service, or a Private Delivery Service.

      3. Revenue Officer's or other IRS official's signature date.

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

      5. DLN Julian Date minus 10 days.

      6. Current date minus 10 days.

      CCC "W" was entered incorrectly. Delete CCC "W" from Field 01CCC.
      The return has a stamp that indicates a previous clearance by Statute Control within the last ninety days. Enter CCC "W" in Field 01CCC and on the return.

      Note:

      Do not send the return to Statute Control.

      The return is not stamped by Statute Control within the last ninety days. SSPND 310.
      Prepare Form 10886 to route to Statute Control.

  4. Suspense Correction:

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

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

3.12.220.6.2  (01-01-2014)
♦Error Code 002 - Name Control Mismatch♦

  1. Fields Displayed:

    Field Designator on Form 720 Field Name Field Length
    CL Clear Code  
    01NC Name Control/Check Digit 4
    >>>> Name Control Underprint  
    01EIN Employer Identification Number 9
    01TXP Tax Period 6
    01CCC Computer Condition Code 10
    04CON In Care of Name 35
    04FAD Foreign Address 35
    04ADD Street Address 35
    04CTY City 22
    04ST State 2
    04ZIP ZIP Code 12

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

  3. Correction Procedures:

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

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

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

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

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

      IF: THEN:
      The Name on the return or attachment matches the Name Control on INOLES.
      1. Bring up Underprint.

      2. Enter "C" in the Clear Code field.

      The Name Control on INOLES is different from the Name on the return or attachment. Research NAMEE/NAMEB for a new EIN.

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

      IF: THEN:
      The Name on INOLES agrees with the Name on the return or attachment.
      1. Ensure that the entity information matches the return.

      2. Overlay Field 01EIN with the new EIN from NAMEB/NAMEE. When the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return.

        Note:

        Do not send Letter 3875C when:
        • Three or less digits of the EIN are transposed, different, or missing, or
        • INOLES indicates the account has been “merged to” or “merged from”, or
        • The EIN on the return is the taxpayer’s SSN and research shows there is no valid entity on Master File for that EIN.

      Multiple EINs are located. SSPND 320 to Entity Control.
      Prepare Form 10886 with the notation "MULTIPLE EINS" .
      INOLES indicates a "Merge To" (MT) EIN. Research the "MT" EIN on INOLES.
      The "MT" EIN matches the entity on the return or attachments. Enter the "MT" EIN in Field 01EIN.
      The "MT" EIN does not match the entity on the return or attachments. SSPND 320 to Entity Control.

    7. If the Name on the return or attachment does not agree with the Name Control on INOLES or there is an indication of a name change, research ENMOD for a new name.

      IF: THEN:
      The Name Control on ENMOD agrees with the Name on the return or attachment. Enter "C" in the Clear Code field.
      The Name Control on ENMOD or INOLES does not agree with the Name on the return or attachment. SSPND 320 to route the return to Entity.
      Attach Form 10886 with the notation "NO RECORD" .

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

      IF: THEN:
      A pending TC 013 is present. Enter "C" in the Clear Code field.
      A pending TC 013 is not present. SSPND 320 to route to Entity.
      Attach Form 10886 with the notation "REQUEST NAME CHANGE (TC 013)" .

  4. Suspense Correction:

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

      IF: THEN:
      The Entity Assignment Date is past the Return Due Date and Received Date. Input CC GTSEC 01.
      Enter the Entity Assignment Date in Field 01CRD.
      The Entity Assignment Date is not past the Return Due Date and Received Date. Continue processing.

    2. Research IDRS to determine if payments posted incorrectly:

      IF: THEN:
      The payment posted to the wrong EIN. Prepare Form 3465 to have the payment transferred to the correct module.
      Notate on Form 3465"MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE" .
      Write "F3465 PREPARED" on return to the left of the Entity section.
      Enter CCC "X" in Field 01CCC.
      The payment posted correctly. Enter correct EIN in Field 01EIN and on the return.
      Enter "C" in the Clear Code field.
      Payment cannot be located. Enter "C" in the Clear Code Field.

      Note:

      A correction to any displayed field must be entered and transmitted prior to entering the "C" , which does not permit any other correction to the record.

3.12.220.6.3  (01-01-2014)
♦Error Code 003 - Check Digit Invalid♦

  1. Fields Displayed:

    Field Designator on Form 720 Field Name Field Length
    01NC Name Control 4
    01EIN Employer Identification Number 9
    01TXP Tax Period 6
    01CCC Computer Condition Code 10

  2. Invalid Condition: Error Code 003 will generate when any of the following conditions is present:

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

    • The letters E, G or M (in check digit only) are present in Field 01NC.

  3. Correction Procedures:

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

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

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

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

    IF: THEN:
    The EIN on the return matches the EIN on NAMEE/NAMEB. Enter Name Control from NAMEE/NAMEB in Field 01NC.
    Research indicates a different EIN. Verify the EIN and name on INOLES.
    Name Control on INOLES matches the name on the return or attachments.
    1. Ensure that the entity information matches the return.

    2. Overlay Field 01EIN with the new EIN from NAMEB/NAMEE. When the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return.

      Note:

      Do not send Letter 3875C when:
      • Three or less digits of the EIN are transposed, different, or missing, or
      • INOLES indicates the account has been “merged to” or “merged from”, or
      • The EIN on the return is the taxpayer’s SSN and research shows there is no valid entity on Master File for that EIN.

  4. Suspense Corrections: Research IDRS using BMFOL to determine if payment(s) have posted incorrectly.

    IF: THEN:
    The payment posted to the wrong EIN. Prepare Form 3465 to have the payment transferred to the correct module. Use local procedures to post the payment prior to the return.
    Notate on Form 3465"MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE" .
    Write "F3465 PREPARED" on the return, to the left of the entity.
    Enter CCC "X" in Field 01CCC.
    Payment posted to the correct EIN. Enter the correct EIN in Field 01EIN and on the return.
    The payment cannot be located. No Action required.

3.12.220.6.4  (01-01-2014)
♦Error Code 004 - Name Control/EIN Validation♦

  1. Fields Displayed:

    Field Designator on Form 720 Field Name Field Length
    CL CLEAR CODE  
    01NC Name Control/Check Digit 4
    >>>> Name Control Underprint  
    01EIN Employer Identification Number 9
    01TXP Tax Period 6
    01CCC Computer Condition Code 10

  2. Invalid Condition: Error Code 004 will generate when any of the following conditions is present:

    • The EIN is not present at Master File (NAP)

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

    Note:

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

  3. Correction Procedures:

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

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

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

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

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

      IF: THEN:
      The Name on the return or attachment matches the Name Control on INOLES.
      1. Bring up underprint.

      2. Enter "C" in the Clear Code field.

      The Name Control on INOLES is different from the Name on the return or attachment. Research NAMEE/NAMEB for a new EIN.

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

      IF: THEN:
      The Name Control on INOLES agrees with the Name on the return or attachment.
      1. Ensure that the entity information matches the return.

      2. Overlay Field 01EIN with the new EIN from NAMEB/NAMEE. When the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return.

        Note:

        Do not send Letter 3875C when:
        • Three or less digits of the EIN are transposed, different, or missing, or
        • INOLES indicates the account has been “merged to” or “merged from”, or
        • The EIN on the return is the taxpayer’s SSN and research shows there is no valid entity on Master File for that EIN.

      Multiple EINs are located. SSPND 320 to Entity Control.
      Prepare Form 10886 with the notation "MULTIPLE EINS" .
      INOLES indicates a "Merge To" (MT) EIN. Research the "MT" EIN on INOLES.
      The "MT" EIN matches the entity on the return or attachments. Enter the "MT" EIN in Field 01EIN.
      The "MT" EIN does not match the entity on the return or attachments. SSPND 320 to Entity Control.

    7. If the Name on the return or attachment does not agree with the Name Control on INOLES or there is an indication of a name change, research ENMOD for a new name.

      IF: THEN:
      The Name Control on ENMOD agrees with the Name Control on the return or attachment Enter a "C" in the Clear Code field.
      The Name Control on ENMOD or INOLES does not agree with the Name Control on the return or attachments. SSPND 320 to route the return to Entity.
      Attach Form 10886 with the notation "NO RECORD" .

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

      IF: THEN:
      A pending TC 013 is present. Enter "C" in the Clear Code field.
      A pending TC 013 is not present. SSPND 320 to route to Entity.
      Attach Form 10886 with the notation "REQUEST NAME CHANGE (TC 013)" .

  4. Suspense Correction:

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

      IF: THEN:
      The Entity Assignment Date is past the Return Due Date and Received Date.
      1. Input CC GTSEC 01.

      2. Enter the Entity Assignment Date in Field 01CRD.

      The Entity Assignment Date is not past the Return Due Date and Received Date. Continue processing.

    2. Research IDRS to determine if payments posted incorrectly:

      IF: THEN:
      The payment posted to the wrong EIN.
      1. Prepare Form 3465 to have the payment transferred to the correct module.

      2. Notate on Form 3465"MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE" .

      3. Write "Form 3465 Prepared " on return, to the left of the Entity section.

      4. Enter CCC "X" in Field 01CCC.

      The payment posted correctly.
      1. Enter correct EIN in Field 01EIN and on the return.

      2. Enter "C" in the Clear Code field.

      Payment cannot be located. Enter "C" in the Clear Code field.

3.12.220.6.5  (01-01-2014)
♦Error Code 005 - Invalid Tax Year or Received Date♦

  1. Fields Displayed:

    Field Designator on Form 720 Field Name Field Length
    CL Clear Code  
    01TXP Tax Period 6
    01RCD Received Date 8

  2. Invalid Condition: Error Code 005 will generate when the year-month of the processing date is later than the tax period plus 6 months and the received date is not present.

  3. Correction Procedures:

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

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

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

    4. Use the earliest received date in Field 01RCD if there are multiple received dates on the return.

      Example:

      Do not use a received date in Field 01RCD that is prior to the beginning of the tax period.

  4. Determine the Received Date using the following priorities when one is needed but is not stamped on the return or a valid handwritten received date is not present:

    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.

3.12.220.6.6  (01-01-2014)
Error Code 006 - Remittance Is Received and No Received Date

  1. Fields Displayed:

    Field Designator on Form 720 Field Name Field Length
    RMIT Remittance Amount 16
    01TXP Tax Period 6
    01CCC Computer Condition Code 10
    01RCD Received Date 8

  2. Invalid Condition: Remittance is received with return but received date is not present.

  3. Correction Procedures:

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

    2. If the received date is missing or illegible, determine the date in the order listed below.

    3. Write received date in "YYYYMMDD" format on the return.

  4. Determine the Received Date using the following priorities when one is needed but is not stamped on the return or a valid handwritten received date is not present:

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

    2. 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.

3.12.220.6.7  (01-01-2014)
♦Error Code 007 - Received Date is Earlier than Tax Year♦

  1. Fields Displayed:

    Field Designator on Form 720 Field Name Field Length
    01TXP Tax Period 6
    01CCC Computer Condition Code 10
    01RCD Received Date 8

  2. Invalid Condition: Error Code 007 will generate when the received date is earlier than the first day of the tax period/year by two months or more.

  3. Correction Procedures:

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

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

    IF: AND: THEN:
    The Received Date is invalid and it appears that the incorrect year was used (i.e., 20130115 instead of 20140115), and other information (Julian date, postmark date, and/or signature date) indicates the received date should be the current year.   Change the Received Date to the current year and enter in Field 01RCD.
    The return is an early filed "Final" return.   SSPND 480
    Prepare Form 10886 with the notation "EARLY FILED" .
    The return is not an early filed Final Return. The Tax Period ending is less than four months after the Received Date. SSPND 480
    Prepare Form 10886 with the notation "EARLY FILED" .
      The Tax Period ending is more than four months after the Received Date. Initiate correspondence for clarification of tax period.
    SSPND 211.

  4. Suspense Correction:

    IF: THEN:
    The taxpayer replies that the return is a "Final" . SSPND 480 until the end of the tax period provided by the taxpayer, if still early, otherwise, continue processing.
    The taxpayer replies that the return is not a "Final" return. SSPND 480 until the end of the tax period provided by the taxpayer, if still early, otherwise, continue processing.
    The taxpayer fails to reply or the reply is not adequate. Enter 3 in Field 01CCC.
    SSPND 480 until the end of the tax period indicated on the return, if still early, otherwise, continue processing.

3.12.220.6.8  (01-01-2014)
♦Error Code 010 - Amended Return "G" Coded♦

  1. Fields Displayed:

    Field Designator on Form 720 Field Name Field Length
    01PIC Penalty and Interest Code 1
    01NUM IRS Number 3
    01CCC Computer Condition Code 10
    01ARN Applied Refund Indicator 1
    01Q01 IRS Tire Tax Count 1 9
    01Q02 IRS Tire Tax Count 2 9
    01Q03 IRS Tire Tax Count 3 9
    01Q04 CRN Tire Credit Count 1 9
    01Q05 CRN Tire Credit Count 2 9
    01Q06 CRN Tire Credit Count 3 9
    01Q10 Medical Devices Sales Price (MEDIV-SALES) 15
    01Q15 PCOR Specified Health Insurance Policies Average Number of Lives (SHIP-LIVES) 10
    01Q16 PCOR Specified Health Insurance Policies Col. (a) x Col. (b) Amount (SHIP-AMT) 15
    01Q17 PCOR Applicable Self-Insured Health Plans Average Number of Lives (ASIHP-LIVES) 10
    01Q18 PCOR Applicable Self-Insured Health Plans Col. (a) x Col. (b) Amount (ASIHP-AMT) 15
    01RCD Received Date 8
    01CAF Centralized Authorization File 1
    0103 Line 3 16
    >>>> Line 3 Underprint 16
    0104 Line 4 16
    >>>> Line 4 Underprint 16
    0108 Line 8 16
    01B/R Balance Due/Refund 16
    >>>> Balance Due/Refund Underprint 16
    01FD FTD Penalty 16
    S02 Section 02  
    S03 Section 03  
    S04 Section 04  
    S05 Section 05  
    S06 Section 06  
    S07 Section 07  

  2. Invalid Condition: Error Code 010 will generate when Computer Condition Code G is present and fields other than Fields 01NC, 01EIN, 01TXP, O1RCD, 01CCC and 01CRD are present.

  3. Correction Procedures:

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

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

    3. Determine if CCC "G" was input correctly:

    IF: THEN:
    Return indicates amended, revised, supplemental, corrected, or superseding, Research BMFOL, BRTVU, SUMRY, and/or TXMOD to determine if information is exactly the same as the posted return.
    All information is not the same,
    1. Process the return with CCC "G" .

    2. DLSEC to delete all sections except Section 01.

    3. Delete the invalid entries that are present in Section 01. GTSEC 01, if necessary.

    All information is exactly the same, SSPND 640 to void the return.
    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),
    1. Enter all necessary data in Sections 02 - 07.

    2. Ensure that the Section 01 fields are correct.

    3. Delete the "G" code in Field 01CCC.

    Note:

    When deleting the CCC "G" and the sections required are shown as being present, no further verification of section entries is needed.

3.12.220.6.9  (01-01-2014)
♦Error Code 014 - Missing Address Entries♦

  1. Fields Displayed:

    Field Designator on Form 720 Field Name Field Length
    04CON In care of 35
    04FAD Foreign Address 35
    04ADD Street Address 35
    04CTY City 22
    04ST State 2
    04ZIP Zip Code 12

  2. Invalid Conditions: Error Code 014 will generate If all fields are not present as follows:

    • If the street address is present, Fields 04CTY and 04ST must be present, unless a Major City Code is used

    • If a Major City Code is used, Field 04ADD must be present

    • A City must be present. If the city is not in Major City Code format, Field 04ST must be present; Field 04ADD can be blank

    • A Major City Code is used and Field 04ST is present

  3. Correction Procedures:

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

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

    3. Research using CC INOLE, NAMEE, NAMEB, ENMOD and/or Document 7475, for valid address information.

    4. Research Document 7475, "State Abbreviations, Major City Codes (MCC) and Address Abbreviations" or INOLE, NAMEE/NAMEB/ENMOD for valid address information.

    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 04CTY.

    2. Enter the State Code in Fields 04ST.

    The Major City Code is correct. the State is present. Delete entry in Field 04ST.
    The ZIP Code or Address cannot be corrected from the information on the return, attachments, or from research.   DLSEC 04.

3.12.220.6.10  (01-01-2014)
Error Code 015 - Foreign Address/State Mismatch

  1. Fields Displayed:

    Field Designator on Form 720 Field Name "In-Care-of" Name Length
    04FAD Foreign Address 35
    04ADD Address 35
    04CTY City 22
    04ST State 2
    04ZIP ZIP Code 12

  2. Invalid Condition: Error Code 015 will generate when any of the following conditions is present:

    • State field has an entry other than (period/space) when a foreign address is present

    • ZIP Code field has an entry when a foreign address is present

  3. Correction Procedures:

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

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

    If... Then...
    A foreign address is present in Field 04FAD.
    1. Field 04ST must contain (period/space).
      Delete any entry in Field 04ZIP.

    A foreign address is not present in Field 04FAD. Check return for foreign address.
    A foreign address is present on the return.
    1. Enter the foreign address in Field 04FAD.

    2. Field 04CTY must contain the appropriate foreign country code. See Exhibit 3.12.220-8, Foreign Country Codes.

    3. Field 04ST must contain (period/space).

    4. Delete any entry in Field 04ZIP.

    Note:

    If additional space is required, continue entering the address in Field 04ADD

    A foreign address is not present on the return.
    1. Verify the address on the return is not a foreign address.

    2. Continue processing.

3.12.220.6.11  (01-01-2014)
♦Error Code 016 - ZIP Code/State Mismatch♦

  1. Fields Displayed:

    Field Designator on Form 720 Field Name Field Length
    04CON In care of name 35
    04FAD Foreign Address 35
    04CTY City 22
    04ST State 2
    04ZIP Zip Code 12

  2. Invalid Condition: Error Code 016 will generate when the ZIP Code is inconsistent with the Major City Code or State Code.

  3. Correction Procedures:

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

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

    3. Research Document 7475, command codes INOLE, NAMEE, NAMEB, and/or ENMOD for valid address information.

    4. If only the first three digits of the ZIP Code can be determined, enter "01" in the fourth (4th) and fifth (5th) positions.

      IF: AND: THEN:
      Unable to determine a valid ZIP Code from the return or attachment.   Enter the valid ZIP Code found through research in Field 04ZIP.
      The address is in a major city. A Major City Code can be determined. Enter Major City Code in Field 04CTY.
      The address is in a major city. A Major City Code cannot be determined.
      1. Enter the name of the city in Field 04CTY.

      2. Enter the State Code in Field 04ST.

      The address is not in a major city.  
      1. Enter the appropriate state abbreviation in Field 04ST.

      2. Enter the ZIP Code in Field 04ZIP.

  4. APO/DPO/FPO Addresses: An APO, DPO, or FPO is not a foreign address. The Postal Service established new address requirements for APO/DPO/FPO addresses. See Exhibit 3.12.220-7, U.S. Possessions, State Abbreviations and ZIP Codes, for the correct APO/DPO/FPO address.

3.12.220.6.12  (01-01-2014)
Error Code 028 - CCC G, R, or D Present and Received Date Not Present

  1. Fields Displayed:

    Field Designator on Form 720 Field Name Field Length
    01CCC Computer Condition Code 10
    01RCD Received Date 8

  2. Invalid Condition: Error code 028 will generate when CCC G, R, or D are present and the Received Date is not present.

  3. Correction Procedures:

    1. Compare the displayed fields with the return.

      IF: THEN:
      Incorrectly transcribed. Overlay the screen with the correct information.
      CCC R or D is present on the return. Enter the Received Date in 01RCD in YYYYMMDD format.
      CCC R or D is not present on the return. Delete the CCC R or D from 01CCC.
      Return is not a CCC G return, and no indication that the return is" Amended" , "Revised" , "Superseded" , "Duplicate" , or nothing indicating that this is other than the first return filed. GTSEC 02 and 03 and 05, as needed, and enter the data in the fields and transmit.
      When Error Code 010 generates enter appropriate fields and delete Field 01CCC.
      Return is correctly "G" coded. Enter the Received Date in 01RCD. Determine the date as listed in b) below.

    2. To determine the correct "Received Date" use the priority order listed below. If multiple dates are on the return, use the earliest date as the received date.

    IF: THEN:
    The Received Date cannot be determined. Determine the entry to Field 01RCD using the following priority order:
    1. IRS Received Date Stamp.

    2. US Postmark, Foreign Postmark date, or private delivery service.

    3. SCAMPS digital date.

    4. Revenue Officer's or other IRS official's signature date.

    5. Return signature date.

    6. Julian date minus 10 days.

    7. Current date minus 10 days.

    The Received Date is invalid and it appears that the incorrect year was used (i.e., 20130115 instead of 20140115), and other information (Julian date, postmark date, and/or signature date) indicates that the received date should be a current year. Change the Received Date year to the current year.
    Multiple Received Dates are present.
    1. Use the earliest IRS stamped Received Date.

    2. Circle out all other dates.

    The return was addressed to the IRS and delivered to a State agency. Use the postmark date as the Received Date.
    The return was addressed to a State agency. Use the IRS date stamp as the Received Date.

3.12.220.6.13  (01-01-2014)
Error Code 030 - PIC Code/Received Date

  1. Fields Displayed:

    Field Designator on Form 720 Field Name Field Length
    01PlC Penalty and Interest Code 1
    01NUM IRS Number 3
    01TXP Tax Period 6
    01RCD Received Date 8
    S02 Section 02  
    S03 Section 03  
    01RDD> Return Due Date 8

  2. Invalid Conditions:

    • The Penalty and Interest Code of "1" is present, and the Received date is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , or is not present.

  3. Correction Procedures:

    1. Compare the displayed fields with the return.

      IF: THEN:
      Incorrectly transcribed. Overlay with the correct information.
      Taxpayer is paying penalty or interest and the received date is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Enter the received date in YYYYMMDD format.
      Received date is correct and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Delete code "1" from Field 01PIC.
      More than one date is present on the return. Use the earliest date and write in YYYYMMDD format.
      Penalty and Interest Code is present and no received date is shown. Determine the date by priority listed below and enter in Field 01 RCD.

    2. To determine the correct "Received Date" use the priority order listed below. If multiple dates are on the return, use the earliest date as the received date.

      IF: THEN:
      The Received Date cannot be determined. Determine the entry to Field 01RCD using the following priority order:
      1. IRS Received Date Stamp.

      2. US Postmark date, Foreign Postmark date, or private deliver service date.

      3. SCAMPS digital date.

      4. Revenue Officer's or other IRS official's signature date.

      5. Return signature date.

      6. Julian date minus 10 days.

      7. Current date minus 10 days.

      The Received Date is invalid and it appears that the incorrect year was used (i.e., 20130115 instead of 20140115), and other information (Julian date, postmark date, and/or signature date) indicates that the received date should be a current year. Change the Received Date year to the current year.
      Multiple Received Dates are present.
      1. Use the earliest IRS stamped Received Date.

      2. Circle out all other dates.

      The return was addressed to the IRS and delivered to a State agency. Use the postmark date as the Received Date.
      The return was addressed to a State agency. Use the IRS date stamp as the Received Date.

    3. CCC "R" will override the CCC "1" Penalty and Interest Code where a delinquency penalty is concerned.

      IF: THEN:
      correct received date is equal to or earlier than the due date, delete Code "1" from Field 01PIC.
      no indication of precomputed Penalty and Interest delete Code "1" from Field 01PIC.

3.12.220.6.14  (01-01-2014)
Error Code 032 - CCC "C" and Adjustment Credit

  1. Fields Displayed:

    Field Designator on Form 720 Field Name Field Length
    01CCC Computer Condition Code 10
    0104 Adjustment Credit 16

  2. Invalid Condition:

    • CCC C is present, the Adjustment Credit of ≡ ≡ ≡ ≡ ≡ ≡ or more is not present and the Tax Period is 199312 or prior.

    • Tax period 199403 or subsequent and CCC C is present.

  3. Correction Procedures:

    Refer to the return to determine if there is an adjustment on line 4.

    IF: AND: THEN:
    No adjustment,   Delete the code from Field 01CCC and return.
    199403 or subsequent, Amount in Field 0104 is less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ Delete the code from Field 01CCC and the return.
    199403 or subsequent, Schedule C or supporting documentation is attached and Field 0104 is ≡ ≡ ≡ ≡ ≡ ≡ more Delete the code from Field 01CCC and the return.
    199403 or subsequent, Amount in field 0104 is ≡ ≡ ≡ ≡ ≡ ≡ more and no Schedule C or supporting documentation
    1. SSPND with AC 211 and correspond for Schedule C. Reply with Schedule C or supporting documentation take to your lead for Excise to classify.

    2. If no reply or they do not supply Schedule C or supporting documentation, delete the amount in Field 0104 and delete the code from Field 01CCC.

     

3.12.220.6.15  (01-01-2014)
Error Code 034 - Correspondence Received Date

  1. Fields Displayed:

    Field Designator On Form 720 Field Name Field Length
    01TXP Tax Period 6
    01RCD Received Date 8
    01CRD Correspondence Received Date 8
    RDD >>>> Return Due Date 8

  2. Invalid Conditions:

    1. The Correspondence Received Date (01CRD) is earlier or the same as either the Received Date (01RCD) or the Return Due Date.

    2. The CRD is later than the processing date.

    3. An entry in Field 01CRD does not always require an entry in Field 01RCD.

  3. Correction Procedures:

    1. The Received Date should be stamped or edited on the return. Compare the displayed fields with the return.

      IF: THEN:
      Incorrectly transcribed. Overlay with the correct information.
      Received Date (01RCD) is missing or illegible. Determine the date in the priority order listed on (b) below.
      Received Date (01RCD) is not present on green money (rockered) remittance returns. Use DLN control date.

    2. To determine the correct "Received Date" use the priority order listed below. If multiple dates are on the return, use the earliest date as the received date.

      IF: THEN:
      The Received Date cannot be determined. Determine the entry to Field 01RCD using the following priority order:
      1. IRS Received Date Stamp.

      2. Postmark Date, Foreign Postmark Date, or Private Delivery Service date.

      3. SCAMPS digital date.

      4. Revenue Officer's or other IRS official's signature date.

      5. Return Signature date.

      6. Julian Date minus 10 days.

      7. Current date minus 10 days.

      The Received Date is invalid and it appears that the incorrect year was used (i.e. 20130115 instead of 20140115), and other information (Julian date, postmark date, and/or signature date) indicates that the received date should be a current year. Change the Received Date year to the current year.
      Multiple Received Dates are present.
      1. Use the earliest IRS stamped Received Date.

      2. Circle out all other dates.

      The return was addressed to the IRS and delivered to a State agency. Use the postmark date as the Received Date.
      The return was addressed to a State agency. Use the IRS date stamp as the Received Date.

    3. A CRD (01CRD) is determined from the date the reply was received in the Campus. Refer to the return for the CRD (01CRD). 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: AND: THEN:
      CRD (01CRD) is present. Earlier than the Return Due Date, same as the Received Date, or later than the processing date. Delete the CRD from Field 01CRD.
      More than one received date is present.   Enter the earliest date in YYYYMMDD format.
      No reply.   Enter CCC 3.

3.12.220.6.16  (01-01-2014)
Error Code 038 - CCC "J" and FTD Penalty

  1. Fields Displayed:

    1. 01CCC - Computer Condition Code

    2. 01FD - FTD Penalty

  2. Invalid Condition: CCC J is present and FTD Penalty is present.

  3. Criteria which applies is:

    1. IRC 3121 agreement has been indicated.

    2. IRC 1706 has been cited.

    3. Returns have been filed by a religious order under PL 92–603.

  4. Correction Procedures:

    1. Refer to the return to determine whether the criteria shown above applies.

    IF: THEN:
    Criteria does not apply. Delete the CCC J from Field 01CCC.
    Criteria does apply. Delete the penalty from Field 01FD.

3.12.220.6.17  (01-01-2014)
Error Code 073 - Correspondence Received Date and CCC "3"

  1. Fields Displayed:

    1. 01CCC - Computer Condition Code.

    2. 01CRD - Correspondence Received Date.

  2. Invalid Condition:

    • Correspondence Received Date and Computer Condition Code "3" are both present.

  3. Correction Procedures:

    IF: THEN:
    Correspondence reply was received from the taxpayer. Delete CCC 3 and circle the CCC 3 edited on the return.
    No reply from taxpayer. Delete the correspondence received date in field 01CRD and circle the CRD entered on the return.

3.12.220.6.18  (01-01-2014)
Error Code 400 - IRS Number and Sections 02 and 03

  1. Fields Displayed:

    1. 01NUM IRS Number.

    2. Section 02 Present/Not Present.

    3. Section 03 Present Not Present.

  2. Invalid Conditions: An IRS Number is present in Field 01NUM and Section(s) 02 and/or 03 is present.

  3. Correction Procedures: Refer to the return for IRS Numbers.

    IF: THEN:
    More than one IRS Number is present. Delete the entry in Field 01NUM and verify that all numbers are present, in Section 02 and/or 03.
    Only one IRS Number is present verify that field 01NUM is correct. Delete Section(s) 02 and/or 03.

    Caution:

    If more than one IRS Number is present, IRS Numbers in Part I of Form 720 must be in Section 02 and IRS Numbers in Part II of Form 720 must be in Section 03.

3.12.220.6.19  (01-01-2014)
Error Code 402 - IRS Number and IRS Tax

  1. Fields Displayed:

    1. 01NUM - IRS Number.

    2. 01CCC - Computer Condition Code.

    3. 0103 - Total Tax Taxpayer.

    4. 0104 - Adjustment Credit.

    5. Section 02 - Present/Not Present.

    6. Section 03 - Present/Not Present.

  2. Invalid Conditions:

    The IRS Number is blank and appropriate IRS Tax is present.

  3. Correction Procedures:

    1. Refer to the return for the IRS Number. If none is shown, check attachments or the entity for the correct IRS Number.

      Note:

      When a tax examiner assigns IRS Number 80 it generates a CP 183 to the taxpayer and requests them to furnish a breakdown of the reported tax liability by IRS number.

    IF: THEN:
    No IRS Number is found for one unidentified tax of ≡ ≡ ≡ ≡ ≡ or less. Enter IRS Number 80 in Field 01NUM.
    More than one unidentified tax is present and is ≡ ≡ ≡ ≡ or less. Combine the tax amounts and enter as IRS Number 80.
    The unidentified tax is ≡ ≡ ≡ ≡ ≡ or more. If only the IRS Number is missing, enter CCC Z in Field 01CCC and IRS Number 80 in 01NUM.
    A secured or prepared return. Suspend (SSPND) with AC 640 and attach Form 10886 with an explanation. Route the return to the originating compliance function.

3.12.220.6.20  (01-01-2014)
Error Code 404 - IRS Numbers Not Valid

  1. Fields Displayed:

    1. 01TXP - Tax Period.

    2. 01CCC - Computer Condition Code.

    3. 01NUM - IRS Number.

    4. 0103 - Total Tax Taxpayer.

    5. 0104 - Adjustment Credit.

    6. Section 02 Present/Not Present.

    7. Section 03 Present/Not Present.

  2. Invalid Conditions: IRS Numbers are not valid for the given Tax Period.

3.12.220.6.20.1  (01-01-2014)
General Error Code 404 Correction Procedures

  1. Refer to the return and check for transcription errors. Make necessary corrections.

  2. Analyze the information on return and any attachments to determine the correct IRS Number. Enter the correct IRS Number in the appropriate field.

  3. If the information on the return and/or attachments indicates that the IRS Number is correct but the tax period is not, make the corrections shown below.

    IF: THEN:
    All taxes reported on the return should be reported in the same tax period. Change Field 01TXP to the correct quarter.
    Taxes on the return should be reported in different quarters. Prepare a dummy return for the incorrectly reported tax(es).
    Anytime the tax period is changed on a RPS/ISRP return. Research via IDRS using CC MFTRA or CC BMFOL to determine if a payment is posted incorrectly or cannot be located. If the payment is posted to the wrong tax period follow local Campus procedures to transfer the payment to the correct module. See IRM 3.12.38.5.5,, Credit Transfers for additional information.
     
     

    Note:

    All PCOR tax 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 Dec. 31st or prior, process to the preceding 2nd quarter (i.e. Form 720 reporting IRS Number 133 received on Dec. 31, 2013 process as 201306). If the return was received after Dec. 31st, process to the subsequent 2nd quarter (i.e. Form 720 reporting IRS Number 133 received on Jan. 2, 2014 process as 201406). 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" .

  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,

    1. Prepare a dummy return for the tax reported under IRS Number 133 and process it as a second quarter return using CCC "X" . See IRM 3.12.38.5.5, BMF Credit Transfers, for more information concerning the preparation of dummy returns and procedures for applying payments correctly.

  5. If the taxpayer is paying a tax that is no longer in effect or has not yet become effective, delete the IRS Number and corresponding tax.

    1. Follow the instructions below to delete an invalid tax.

    IF: THEN:
    There are no valid IRS Numbers present on the return. Change Field 01NUM to 80, and delete the amount in Field 0103 and/or 0104, as well as any entries in Sections 02 and 03. The response will be Error Code 432 only if the amount is greater ≡ ≡ ≡ ≡ ≡ ≡ Use TPNC 90 to explain the correction to the taxpayer.
     
     
    One or more valid IRS Number(s) is present on the return. Delete the IRS Number and tax for the invalid number in Section 02 or 03. The response will be Error Code 428 or 430. Use TPNC 90 to explain the correction to the taxpayer.  
     

    Caution:

    Do not delete the tax unless you are certain that the IRS number is invalid.

3.12.220.6.20.2  (01-01-2014)
Correction of IRS Number 20

  1. This tax on Form 720 is for floor stock (ODC - floor stock) held as of January 01 of each year with the payment due on June 30 of each year. The floor stock on ODC's (IRS No. 20) has been continued indefinitely.

  2. If the taxpayer files Form 720 with only IRS No. 20 present and the tax period is other than the first (201303, 201403, 201503, etc.) or second quarter (201306, 201406, 201506, etc.) change Field 01TXP to the second quarter (201306, 201406, 201506, etc.).

    Exception:

    1990 valid only for the first quarter (199003).

  3. If the taxpayer files IRS Number 20 with other numbers on the return and the tax period is other than the first (201303, 201403, 201503, etc.) or second quarter (201306, 201406, 201506, etc.),

    1. Prepare a dummy return for the tax reported under IRS Number 20. See IRM 3.12.38.5.5, BMF Credit Transfers, for more information concerning the preparation of dummy returns and procedures for applying payments correctly.

      Exception:

      If IRS #20 is for $0 (zero) and other IDRS numbers have tax you do not have to prepare a dummy return.

3.12.220.6.21  (01-01-2014)
Error Code 405 - IRS Number 31 or 40

  1. Fields Displayed:

    • CL - Clear Code.

    • 01NUM - IRS Number.

    • 0103 -Total Tax Taxpayer.

    • 0104 - Adjustment Credit.

    • Section 02 Present/Not Present.

    • Section 03 Present/Not Present.

  2. Invalid Conditions:

    1. IRS Number 31 is present.

    2. IRS Number 40 is present and the cents portion of the associated IRS Tax filed is other than .00.

    3. The taxpayer put zeros next to IRS number 31.

3.12.220.6.21.1  (01-01-2014)
General 405 Correction Procedures

  1. Check the abstract area of the return (IRS No. column on Form 720) for transcription errors. Make any necessary corrections. If no corrections are necessary enter "C" in the clear code field.

3.12.220.6.21.2  (01-01-2014)
Correction of IRS Number 31

  1. If IRS Number 31 is present and there are no transcription errors enter "C" in the clear code field.

3.12.220.6.21.3  (01-01-2014)
Correction of IRS Number 40

  1. IRS Number 40 is present and there are cents present in the corresponding tax field, check the attachments to see if Form 6197, Gas Guzzler Tax, was filed with the return.

    IF: THEN:
    No Form 6197 attached. Round the tax to the nearest even dollar and continue to process.
    Form 6197 is attached, amount is less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ even multiples of ≡ ≡ ≡ ≡ ≡ ≡ . Verify computation of tax, input correct amount as IRS Number 40 and edit the return amount to reflect the changes.
    Form 6197 is attached and a tax shows on line 13 with cents. Round the tax to the nearest even dollar and input amount as IRS Number 40 if change to tax reported ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ any further changes.

3.12.220.6.22  (01-01-2014)
Error Code 406 - Duplicate IRS Numbers / CRN(s) Blank and Credits Greater than Zero

  1. Fields Displayed:

    • Section 02 Present/Not Present.

    • Section 03 Present/Not Present.

    • Section 06 Present/Not Present.

    • Section 07 Present/Not Present.

  2. Invalid Conditions: This process checks for two conditions. It checks for duplicate IRS Numbers and/or if any Schedule C CRN(s) is blank but there is a Credit Reference Amount greater than zero.

  3. Correction Procedures:

    1. Refer to the return and correct any transcription errors.

    2. If duplicate IRS numbers, then combine the amounts, adjust the return with the combined figure and correct the appropriate fields.

    3. Check the return and attachments for the correct CRN and put in the appropriate field.

3.12.220.6.23  (01-01-2014)
Error Code 408 - No IRS Number, 01NUM is Blank, and Total Tax not Zero

  1. Fields Displayed:

    • 01CCC - Computer Condition Code.

    • 01NUM - IRS Number.

    • Section 02 Present/Not Present.

    • Section 03 Present/Not Present.

  2. Invalid Conditions:

    • There are no IRS Numbers (Abstracts).

    • 01NUM is blank.

    • Section 02 and 03 are not present.

    • Total tax is not equal to zero.

  3. Correction Procedures:

    1. Refer to the return and attachments for the correct IRS Number.

    IF: THEN:
    One IRS number. Enter it in Field 01NUM.
    Multiple IRS numbers are reported (including zeros). Enter with any corresponding tax (including zero) in Section 02 or 03. Enter the reported IRS number(s) even if no tax is reported.
    IRS number is unknown and tax is ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Enter IRS Number 80 in Field 01NUM.
    IRS number is unknown and tax ≡ ≡ ≡ ≡ ≡ ≡ ≡ more. Enter IRS Number 80 in Field 01NUM and CCC Z.
    A secured or IRC 6020(b) prepared return. SSPND with AC 640 and attach Form 10886, with an explanation, to route the return to the originating compliance area. Do not use CCC Z.

3.12.220.6.24  (01-01-2014)
Error Code 410 - 01NUM is Blank and Only One IRS Number Present

  1. Fields Displayed:

    • 01NUM - IRS Number

    • Section 02 Present/Not Present

    • Section 03 Present/Not Present

  2. Invalid Conditions:

    Field 01NUM is blank in Section 01, and only one IRS Number is present in Section 02 or 03.

    Exception:

    Unless it is either IRS Number 108, 109, 113, or 136 in which case it must be located in Section 02 and IRS Number 133 in which case it must be located in Section 03.

  3. Correction Procedures:

    1. Check for transcription errors. Make necessary corrections.

    2. If there are no errors, enter IRS Number from Section 02 or 03 in Field 01NUM, and delete Section 02 or 03.

3.12.220.6.25  (01-01-2014)
Error Code 412 - CCC Z is Present and IRS Number 80 is Not Present

  1. Fields Displayed:

    • 01NUM - IRS Number

    • 01CCC - Computer Condition Code

    • 0103 - Total Tax Taxpayer

    • Section 02 Present/Not Present

    • Section 03 Present/Not Present

  2. Invalid Conditions:

    • CCC Z is present and the IRS Number 80 is not present.

    Note:

    When a tax examiner assigns IRS Number 80 it generates a CP 183 to the taxpayer and requests them to furnish a breakdown of the reported tax liability by IRS number.

  3. Correction Procedures:

    1. Refer to the return and check the IRS Numbers for coding and transcription errors.

      IF: THEN:
      IRS Number for all of the taxes reported on the return can be identified. Delete the CCC Z in Field 01 CCC.
      IRS Number(s) for tax(es) of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ can not be identified. Combine the unidentified tax(es) and enter 80 in the applicable IRS Number field.
      IRS Number from the return or attachments for a tax of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and can not be identified. Enter 80 in the applicable IRS Number field and delete the CCC Z in Field 01CCC.
      A secured or prepared return and can not be identified. SSPND with AC 640 and attach Form 10886 with an explanation, to route the return to the originating compliance area. Do not use CCC Z.

3.12.220.6.26  (01-01-2014)
Error Code 413 - CCC Z is Present IRS Number is 80, and Tax Less ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  1. Fields Displayed:

    • 01NUM - IRS Number

    • 01CCC - Computer Condition Code

    • 0103 - Total Tax Taxpayer

    • Section 02 Present/Not Present

    • Section 03 Present/Not Present

  2. Invalid Conditions:

    CCC Z is present. The IRS Number is 80 and associated tax is less ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Correction Procedures:

    1. Refer to the return and check for coding and transcription errors.

      IF: THEN:
      Unidentified tax reported is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Enter the correct amount of tax in Field 0103 or the applicable IRS Tax field in Section 02 or 03.
      Unidentified tax is less ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Delete the CCC Z in Field 01CCC.
      Unidentified tax and it is a secured or IRC 6020(b) prepared return. SSPND with AC 640 and attach Form 10886 with an explanation, to route the return to the originating compliance area. Do not use CCC Z.

3.12.220.6.27  (01-01-2014)
Error Code 414 - CCC Z Not Present, IRS Number 80 and Tax More ≡ ≡ ≡ ≡ ≡ ≡

  1. Fields Displayed::

    • 01NUM - IRS Number

    • 01CCC - Computer Condition Code

    • 0103 - Total Tax Taxpayer

    • Section 02 Present/Not Present

    • Section 03 Present/Not Present

  2. Invalid Conditions: CCC Z is not present, the IRS Number is 80 and the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  3. Correction Procedures:

    1. Refer to the return and check the IRS Numbers and the related taxes for coding and transcription errors.

      IF: THEN:
      IRS Number is not 80. Correct the appropriate IRS Number field.
      IRS Number is 80 and the related tax is correct. Enter CCC Z in Field 01CCC.
      A secured or prepared IRC 6020(b) return and the tax is not identified. Suspend with AC 640 and attach Form 10886 with an explanation, to route the return to the originating compliance area. Do not use CCC Z.

3.12.220.6.28  (01-01-2014)
Error Code 416 - IRS Tire Tax IRS Numbers 108, 109, and 113

  1. Fields Displayed:

    • CL - Clear Code

    • Section 02

    • 01Q01 - Tire Count 1

    • 01Q02 - Tire Count 2

    • 01Q03 - Tire Count 3

  2. Invalid Conditions:

    • IRS Tire Tax for IRS Numbers 108, 109, and/or 113 has a significant entry (numeric greater than zero) and the corresponding IRS Tire Count is zero or blank.

    • IRS Tire Count for IRS Numbers 108, 109, and/or 113 has a significant entry (numeric greater than zero) and the corresponding IRS Tax is zero or blank.

  3. Correction Procedures:

    1. Refer to the Form 720 and compare to the screen display

      If... Then...
      IRS Number(s) 108, 109, and/or 113 has a significant number of tires entered Enter the correct amount of tax for IRS Number 108, 109, and/or 113 respectively.
      the amount of tax for IRS Number(s) 108, 109, and /or 113 cannot be determined
      • SSPND with AC 211 and correspond for the missing information

      • Enter the amount of tax for each IRS Number based on the response.

      the number of tires is missing or cannot be obtained from an attachment to the Form 720
      • SSPND with AC 211 and correspond for the missing information

      • If no reply is received enter a 1 in the respective field for the number of tires

      Exception:

      When zero needs to be accepted as a reported number of tires and/or tax amount for IRS Numbers 108, 109, and/or 113 enter a "C" in the Clear Code field to clear the error. This should only be done once the amounts have been verified with the field Form 720. This applies when the taxpayer enters 0 (zero), n/a, -, etc. on these lines indicating a denial of liability.

      Note:

      Corrections to IRS Number 108, 109, and/or 113 tax must be made in fields 02T22, 02T23, and/or 02T24 and the respective number of tires must be entered in fields 01Q01, 01Q02, and/or 01Q03.

3.12.220.6.29  (01-01-2014)
Error Code 417 - Schedule C Credit Amount / CRN Tire Count

  1. Fields Displayed:

    • CL - Clear Code

    • Section 06

    • Section 07

    • 01Q04 - Tire Count 4

    • 01Q05 - Tire Count 5

    • 01Q06 - Tire Count 6

  2. Invalid Conditions:

    • Schedule C credit amount for CRN 396, 304, and/or 305 has a significant entry and the corresponding CRN Tire Count is zero or blank.

    • CRN Tire Count for CRN 396, 304, and/or 305 has a significant entry and the corresponding Schedule C CRN amount is zero or blank.

  3. Correction Procedures:

    1. Refer to Form 720 Schedule C Line 15, Other Claims, and compare to the screen display

      If... Then...
      Schedule C CRN(s) 396, 304, and/or 305 has a significant number of tires entered Enter the correct amount of credit for CRN 396, 304, and/or 305 respectively.
      the amount of credit for Schedule C CRN(s) 396, 304, and/or 305 cannot be determined
      • SSPND with AC 211 and correspond for the missing information.

      • Enter the amount of credit for each CRN based on the response.

      If the number of tires is missing or cannot be obtained from an attachment to the Form 720
      • SSPND with AC 211 and correspond for the missing information.

      • If no reply is received enter a 1 in the respective field for the number of tires.

      Exception:

      When zero needs to be accepted as a reported number of tires and/or credit amount for CRNs 396, 304, and/or 305 enter "C" in the Clear Code field to clear the error. This should only be done once the amounts have been verified with the filed Form 720.

      Note:

      Corrections to Schedule C CRN 396, 304, and/or 305 credit(s)/claim(s) must be made in fields 06T19, 06T20, and/or 06T21 and the respective number of tires must be entered in fields 01Q04, 01Q05, and/or 01Q06.

3.12.220.6.30  (01-01-2014)
Error Code 421 - Check Medical Device Sales Presence

  1. Fields displayed:

    • CL - Clear Code

    • Section 02

    • 01Q10 - Medical Device Sales Price (MEDIV-SALES)

  2. Invalid conditions

    • IRS Number 136 is present in Section 02 field 25 and sales price and/or tax amount not present.

    Note:

    Section 02 field 25 is dedicated to Medical Device tax entries only.

  3. Correction procedure:

    • Ensure medical devices sales price, IRS Number 136, and tax are entered correctly in Section 02 field 25 (01Q10, 02T25, and 02N25).

      If... And... Then...
      The Sales Price is present, the tax amount is not present,
      1. Multiply the Sales Price by 2.3% (.023).

      2. Enter the result in the tax column for IRS Number 136.

      A tax amount is present for IRS Number 136, the Sales Prices is not present,
      1. Divide the tax amount by 2.3% (.023).

      2. Enter the result in the column for Sales Price.

    Note:

    If the return reflects 0 (zero), n/a, - , etc. for Medical Devices Sales Price and/or Medical Devices Tax (IRS 136 tax), enter a "C" in the Clear Code field to clear the error upon verification with the filed Form 720.

3.12.220.6.31  (01-01-2014)
Error Code 422 - Check Patient Centered Outcomes Research Specified Health Insurance Policies and/or Applicable Self-Insured Health Plans Average Number of Lives Covered and/or Col. (a) x Col. (b) Tax Amount Presence

  1. Fields displayed:

    • CL - Clear Code

    • Section 03

    • 01Q15 - PCOR Specified Health Insurance Policies Average Number of Lives Covered (SHIP-LIVES)

    • 01Q16 - PCOR Specified Health Insurance Policies Col. (a) x Col. (b) Amount (SHIP-AMT)

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

    • 01Q18 - PCOR Applicable Self-Insured Health Plans Col. (a) x Col. (b) Amount (ASIHP-AMT)

  2. Invalid conditions:

    • IRS Number 133 is present in Section 03 field 01 and SHIP-LIVES, SHIP-AMT, ASIHP-LIVES, and/or ASIHP-AMT is not present.

      Note:

      Section 03 field 01 is dedicated to PCOR tax only. If PCOR tax information is present on the filed Form 720 it must be entered in Section 03 field 01. If tax information for any other IRS number has been entered in Section 03 field 01, move it to any other open field.

  3. Correction procedures:

    • If IRS Number 133 is present in Section 03 field 1 ensure 01Q15, 01Q16, 01Q17, and/or 01Q18 are present. This error code is to ensure average number of lives covered and Col. (a) x Col. (b) have numeric amounts entered when PCOR tax has been reported.

    • The tax amount for IRS Number 133 will be the total tax reported for both. Col. (a) x Col. (b) for specified health insurance policies added to Col. (a) x Col. (b) for applicable self-insured health plans.

    If... And... Then...
    Average Number of Lives Covered has an amount, the Col. (a) x Col. (b) and/or tax amount for IRS Number 133 is blank,
    1. Multiply the specified health insurance policies average number of lives covered by $1.00.

    2. Enter the resulting amount in Col. (a) x Col. (b) for specified health insurance policies.

    3. Multiply the applicable self-insured health plans average number of lives covered by $1.00.

    4. Enter the resulting amount in Col. (a) x Col. (b) for applicable self-insured health plans.

    5. Add the two lines in Col. (a) x Col. (b) together and enter that result in the tax column for IRS No 133.

    There is a tax amount present for IRS No. 133, There are no entries in the average number of lives covered and/or the Col. (a) x Col. (b) lines, Use the tax amount to try and back into the average number of lives covered and/or Col (a) x Col (b) lines.
    There is a tax amount present for IRS No. 133, There is no manner in which to determine the average number of lives covered and/or the Col. (a) x Col. (b) lines, Correspond for the correct breakdown of the number of lives and the Col. (a) x Col. (b) lines.

    Note:

    If the return reflects 0 (zero), n/a, - , etc. for PCOR tax (IRS 133), enter "C" in the Clear Code field to clear the error once the entries have been verified with the filed Form 720.

3.12.220.6.32  (01-01-2014)
Error Code 426 - IRS and CRN Numbers Present with Credit Amount

  1. Fields Displayed:

    • 01NUM - IRS Number

    • 0104 - Adjustment Credit

    • Section 02 Present/Not Present

    • Section 03 Present/Not Present

    • Section 06 Present/Not Present

    • Section 07 Present/Not Present

  2. Invalid Conditions: IRS Numbers and CRN Numbers are present with credit amount for any tax period.

3.12.220.6.32.1  (01-01-2014)
Error Code 426 Correction Procedures

  1. Refer to the return, including attachments, to verify that the IRS Number(s), CRNs, and related claim amount were entered correctly.

    IF: THEN:
    Taxpayer is trying to take an adjustment for a prior period. Delete the claim amount and use TPNC 90 to inform taxpayer to use a Form 720X, Amended Quarterly Federal Excise Tax Return, for prior period adjustments.
    Return shows an IRS Number (abstract) with a tax amount entered as a credit. Delete the credit amount and enter the correct tax amount.
    Return shows a CRN claim amount which was incorrectly entered as a tax. Delete the tax amount and enter the correct claim/credit amount.

3.12.220.6.33  (01-01-2014)
Error Code 428 - Total Tax Taxpayer and Total Tax Computer Differ

  1. Fields Displayed:

    • NC - Notice Code

    • 01NUM - IRS Number

    • 01CCC - Computer Condition Code

    • 0103 - Total Tax Taxpayer

    • >>>> - Total Tax Computer

    • 01B/R - Balance Due Overpayment Taxpayer

    • Section 02 Present/Not Present

    • Section 03 Present/Not Present

  2. Invalid Conditions: Total Tax Taxpayer and Total Tax Computer, which is the total of all positive amounts in the abstract area, do not agree and the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.12.220.6.33.1  (01-01-2014)
Error Code 428 Correction Procedures

  1. Refer to the return to verify that the taxpayer's total tax and the taxes in Sections 02 and 03 have been entered correctly. Make any necessary correction(s).

  2. Check the return, including attachments, to see if the taxpayer has provided an explanation for the difference.

  3. If none of the above apply, then:

    IF: THEN:
    If the error code displays because of corrections made on a previous error code. Send appropriate notice code (for example; if EC404, then send TPNC 90).
    If the amount in Field 0103 Total Tax Taxpayer exceeds Total Tax Computer, there are no transcription errors, there is no explanation of the difference and it is not a secured return. Enter IRS Number 80 and the amount of the difference in the abstract area of the return, and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ enter CCC Z in Field 01CCC and on the return.
    If it is a secured or IRC 6020(b) prepared return. Suspend with AC 640 and attach Form 10886 with an explanation, to route the return to the originating compliance function.
    If no change is made. Send TPNC 03.

3.12.220.6.34  (01-01-2014)
Error Code 430 - Adjustment Credit Differs

  1. Fields Displayed:

    • NC - Notice Code

    • 01CCC - Computer Condition Code

    • 0104 - Adjustment Credit Taxpayer

    • >>>> - Abstract Credit

    • Section 02 Present/Not Present

    • Section 03 Present/Not Present

    • Section 06 Present/Not Present

    • Section 07 Present/Not Present

  2. Invalid Conditions: The total of the sections 06 and 07 and the Adjustment Credit differ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

3.12.220.6.34.1  (01-01-2014)
Error Code 430 Correction Procedures

  1. Refer to the return to verify that field 0104 and Section 06 and 07 were entered correctly. Make any necessary corrections.

    Note:

    Excise classifiers will accept, partially disallow, disallow, or no consider all Line 4 claims. If there are corrections in brown pencil (Excise classifiers), check for math errors.

    IF: THEN:
    Error code displays because of corrections made on a previous error code. Send the appropriate TPNC.
    Any of the following:
    1. Line 4 is blank, determine if credit amount has been subtracted from the Total Tax on Line 3 to compute the tax on line 5, and there is either a completed Schedule C (or similar schedule) attached, or

    2. claim is present on line 4 of the return, check the return and attachments for each CRN Number and associated claim amount and required documentation for each is present.

    1. Have Excise Operations review line 4.

    2. Suspend 410.

    A taxpayer is trying to take an adjustment for a prior period. Delete the credit amount and use TPNC 90 to inform the taxpayer to use a Form 720X for prior period adjustments.
    No transcription errors are found. Enter the appropriate TPNC. TPNCs 10 and 90 are valid for this error code. If more than three codes are needed, use TPNC 90.

  2. Appropriate TPNC Codes are 10 and 90.

    • TPNC-10 - We found an error in the amount shown for claims on Schedule C.

3.12.220.6.35  (01-01-2014)
Error Code 436 - Taxpayer and Computer Balance Due/Overpayment Differ

  1. Fields Displayed:

    • NC - Notice Code

    • 01CCC - Computer Condition Code

    • 01ARN - Applied Refund Indicator

    • 0103 - Total Tax Taxpayer

    • >>>> - Line 3 Total Tax Computer

    • 0104 - Adjustment Credit Taxpayer

    • >>>> - Adjustment Credit Computer

    • 0108 - FTD Credit Taxpayer

    • 01B/R - Balance Due/Overpayment

    • >>>> - Balance Due/Overpayment Computer

    • 01FD - FTD Penalty Taxpayer

  2. Invalid Conditions:

    • Balance Due/Overpayment Taxpayer and Balance Due/Overpayment Computer are not equal and the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    • Refund is $1 million or more and CCC O is not present.

  3. Correction Procedures:

    1. Refer to the return to verify that Fields 0108, 01B/R, and 01FD are correct. Make any necessary corrections.

    IF: THEN:
    A correction to 01B/R results in an overpayment, refer to the "applied to your next return" or "Refunded to you: boxes and Field 01CCC" . The "Refunded to you" box is checked and CCC S is not present in Field 01CCC, enter a "2" in Field 01ARN.
    Math error amount is the same as the remittance on the return and the remittance was included in the total on line 8. Subtract it from Field 0108 and enter the correct amount on line 8 and in Field 0108.
    FTD penalty is present and amount was not included in Field 01B/R. Change the amount to include the FTD penalty.
    Taxpayer has not made an entry on line 10 or line 11 and tax is present. Compute the balance due or refund and enter in Field 01BR. A notice should not be sent to the taxpayer.
    No transcription errors. Assign TPNC 01, 24 or 90.
    Taxpayer has requested that any excess credit be applied to another tax account. Enter CCC X in field 01CCC.
    Prepare Form 3465 to indicate the amount and module to which the credit should be applied.
    Photocopy page 1 and 2 of the return and with F3465 routed to Excise Operations so that the credit can be transferred when the return posts.
    Note "F3465" on the left margin of the return.

  4. Error Code 436 was created to protect the Service from paying unnecessary interest on refund of $1 million dollars or more. The Error code utilizes programming, which generates a Computer Condition Code "E" (e.g. when the taxpayer has not indicated whether to apply the "overpayment" to the next return, or to refund), to monitor for large refund.

    1. To resolve Error Code 436 condition

    IF: THEN:
    Field 01B/R is equal to a refund of $1 million dollars or more and there is no indication of a manual refund.

    Reminder:

    To determine if a manual refund has been issued, research using BMFOLT and look for a TC 840 on the tax period.

    If no manual refund has been issued, SSPND with AC 341 (Manual Refund). Flag the return for the issuance of a manual refund.
    If a manual refund has been issued, use CCC O to clear the code.
    CCC E is present and the taxpayer has elected to apply "overpayment" to the next return or has failed to indicate whether overpayment should be applied to the next return. Use CCC O to clear error code.

  5. Appropriate TPNC Codes are 01, 24, and 90.

    • TPNC-01 - We found an error in the computation of the balance due or the overpayment amount.

    • TPNC-24 - We found an error in the amount reported as total Federal Tax Deposits for the quarter and/or overpayment from the previous quarter.

    • TPNC-90 - Open paragraph with no prewritten text.

3.12.220.6.36  (01-01-2014)
Error Code 440 - FTD Penalty Taxpayer is Greater than Zero and Total Tax Computer is Zero

  1. Fields Displayed:

    • 01B/R - Balance Due/ Overpayment Taxpayer

    • >>>> - Balance Due/ Overpayment Computer

    • 01FD - FTD Penalty Taxpayer

    • 0103 - Total Tax Taxpayer

    • >>>> - Total Tax Computer

  2. Invalid Conditions: The FTD Penalty Taxpayer is greater than zero and Total Tax Computer is zero or negative.

  3. Correction Procedures:

    1. Refer to the return to verify entries in Fields 0103 and 01FD. Make necessary corrections.

    2. If no corrections are necessary, delete the penalty in Field 01FD and adjust Field 01B/R accordingly.

    3. Make corrections to both Fields 01FD and 01B/R before transmitting. It is important that precomputed FTD penalty be reflected correctly in Taxpayer's Overpayment/Balance due. A computer generated notice will be sent to the taxpayer to explain changes to FTD Penalty,

3.12.220.6.37  (01-01-2014)
Error Code 442 - Total Tax Zero and RPS indicator is present, No G Code

  1. Fields Displayed:

    • NC - Notice Code

    • RMIT - Remittance

    • 01CCC - Computer Condition Code

    • 01RCD - Received Date

    • 0103 - Total Tax Taxpayer

    • >>>> - Total Tax Computer

    • 0104 - Adjustment Credit Taxpayer

    • 0108 - FTD Credit Taxpayer

    • 01 B/R - Balance Due/Overpayment Taxpayer

    • 01 FD - FTD Penalty Taxpayer

  2. Invalid Conditions: The Total Tax Taxpayer is zero and the payment received is not zero or the RPS indicator is present and the return is not "G" coded.

  3. Correction Procedures:

    1. Refer to the return and attachments to verify that Field 0103 is correct.

    2. Make necessary corrections.

    IF: THEN:
    Attachment shows that an amount is due but it was not brought forward to the Form 720.
    1. Change Field 0103 to reflect the amount due shown on the attachment. This will cause Error Code 402 to generate.

    2. Enter the appropriate IRS Number in Field 01NUM or Section(s) 02 or 03 if appropriate, to clear EC402.

    No transcription errors and you have changed the taxpayers figures. Use the appropriate TPNC. Even if more than one TPNC has already been assigned only one code may be entered in the notice code field. All assigned codes will be printed on the notice.
    You are unable to determine the liability.
    1. Use MFTRA or BMFOL to obtain additional information.

    2. If no information is found, correspond with the taxpayer for an explanation.

    3. Follow normal correspondence procedures and suspend the record with AC 211.

     
    It is determined that part or all of the payments should be applied to another module.
    1. Enter CCC X in field 01CCC. (This code will freeze the tax module from refunding or offsetting.)

    2. Prepare Form 3465 and attach a copy of the return notate "Photocopy - Do Not Process" , to indicate the amount and module to which the credit should be applied.

    3. Route to Excise Operations so that the credit can be transferred when the return posts. Notate "F3465" on the return.

     
    Total Tax on the return is zero and a TPNC is not entered Enter .01 in Fields 0103 (Total Tax Taxpayer) to clear Error Code 442.  

  4. Appropriate TPNC Codes are 01, 03, and 90.

    • TPNC-01 - We found an error in the computation of the balance due or the overpayment amount.

    • TPNC-03 - We found an error in the computation of your total tax.

    • TPNC-90 - Open paragraph with no pre-written text.

3.12.220.6.38  (01-01-2014)
Error Code 999 and Year Reformat

  1. Fields Displayed:

    • 01TXP Tax Period

  2. Invalid Conditions: Error Code 999 will be generated for all returns that are in error status at the end of the processing year.

  3. Correction Procedures: The only correction procedure required for this error code is for the tax examiner to transmit the record. The system will revalidate the record and set validity and error codes based on current year's programs.

3.12.220.7  (01-01-2014)
Repealed Excise Taxes

  1. If there is a clear indication that the taxpayer is trying to file a final return for a repealed excise tax (i.e., taxpayer writes "Repealed Tax" and the return is for zero amount), edit CCC F and IRS Number 80.

  2. If the taxpayer is paying a tax that is no longer in effect or has not yet become effective see IRM 3.12.220.6.20.1, General Error Code 404 Correction Procedures.


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