3.12.220  Error Resolution System for Excise Tax Returns

Manual Transmittal

November 20, 2013

Purpose

(1) This transmits revised IRM 3.12.220, Error Resolution, Error Resolution System for Excise Tax Returns.

Material Changes

(1) Minor editorial changes have been made throughout this IRM.

(2) IRM 3.12.220.1(1) - Updated note to reflect the Form 2290, Heavy Highway Vehicle Use Tax Return, has been extended through September 30, 2017.

(3) IRM 3.12.220.1.16 - Corrected to issue manual refunds for $1 million and over.

(4) IRM 3.12.220.4 - Added general information pertaining to Medical Devices and Patient Centered Outcomes Research tax.

(5) IRM 3.12.220.4.1 - Added general information pertaining to Medical Devices and Patient Centered Outcomes Research tax including the IRS Numbers and Credit Reference Numbers.

(6) IRM 3.12.220.5(4) - Updated table to reflect new fields attributable to Medical Devices and Patient Centered Outcomes Research taxes.

(7) IRM 3.12.220.5.1(2) - Removed references to preaddressed labels.

(8) IRM 3.12.220.5.14 - Added information regarding new field 01Q10 for Medical Devices.

(9) IRM 3.12.220.5.14(3)a) - Removed the word blank from the note. If the taxpayer has left all entries for Medical Device tax as blank fields no amounts need to be entered. Added note to use .01 for Medical Devices Sales Price when 0 (zero), n/a, -, etc. have been entered on the Form 720 for this entry.

(10) IRM 3.12.220.5.15 - Added new paragraph providing additional guidance for processing Patient Centered Outcomes Research Tax to the second quarter. Also provided rounding guidance when partial lives have been reported. Added information regarding new field 01Q15 for Patient Centered Outcomes Research Specified Health Insurance Plans average number of lives covered.

(11) IRM 3.12.220.5.15(4) - Clarified note for processing Patient Centered Outcomes Research returns to the second quarter.

(12) IRM 3.12.220.5.16 - Added information regarding new field 01Q16 for Patient Centered Outcomes Research Specified Health Insurance Plans tax reported under Col. (a) x Col. (b). Added new paragraph providing additional guidance for processing Patient Centered Outcomes Research Tax to the second quarter.

(13) IRM 3.12.220.5.16(4) - Clarified note for processing Patient Centered Outcomes Research returns to the second quarter.

(14) IRM 3.12.220.5.17 - Added information regarding new field 01Q17 for Patient Centered Outcomes Research Applicable Self-Insured Health Plans average number of lives covered. Added new paragraph providing additional guidance for processing Patient Centered Outcomes Research Tax to the second quarter. Also provided rounding guidance when partial lives have been reported.

(15) IRM 3.12.220.5.17(4) - Clarified note for processing Patient Centered Outcomes Research returns to the second quarter.

(16) IRM 3.12.220.5.18 - Added information regarding new field 01Q18 for Patient Centered Outcomes Research Applicable Self-Insured Health Plans tax reported under Col. (a) x Col. (b). Added new paragraph providing additional guidance for processing Patient Centered Outcomes Research Tax to the second quarter.

(17) IRM 3.12.220.5.18(4) - Clarified note for processing Patient Centered Outcomes Research returns to the second quarter.

(18) IRM 3.12.220.5.38(1) - Removed reference to preaddressed labels.

(19) IRM 3.12.220.6.30 - Added If/Then table for determining the entries for Medical Device tax. Removed the word blank from the note. If the taxpayer has left all entries for Patient Centered Outcomes Research tax as blank fields no amounts need to be entered.

(20) IRM 3.12.220.5.31 - Section 02 expanded from 24 fields to 25 fields for tax amounts and Medical Devices information must be captured in the last occurrence.

(21) IRM 3.12.220.5.31(3) - Added to note regarding IRS Number 136 tax is only valid in Section 02 Field 25.

(22) IRM 3.12.220.5.32 - Section 02 expanded from 24 fields to 25 fields for IRS Numbers and Medical Devices information must be captured in the last occurrence.

(23) IRM 3.12.220.5.33 - Added note for capturing Patient Centered Outcomes Research tax in the first occurrence in Section 03.

(24) IRM 3.12.220.5.33(3) - Added to note regarding IRS Number 133 tax is only valid in Section 03 Field 01.

(25) IRM 3.12.220.5.34 - Added note for capturing Patient Centered Outcomes Research tax in the first occurrence in Section 03.

(26) IRM 3.12.220.6.8 - Added field designators to table for Medical Devices and Patient Centered Outcomes Research.

(27) IRM 3.12.220.6.20.1(3) - Added note below table to reflect all IRS Number 133 tax must be posted to second quarter accounts. Also added new paragraph to prepare a dummy return when IRS Number 133 has been reported along with other IRS Numbers and it is not a second quarter return.

(28) IRM 3.12.220.6.24 - Added IRS Number 133 to Error Code 410 instructions.

(29) IRM 3.12.220.6.30 - Added Error Code 421 correction procedures ensuring presence of Medical Devices sales price and tax. Also updated procedure for clearing Error Code 421.

(30) IRM 3.12.220.6.30(3) - Added note to use .01 for Medical Devices Sales Price and Tax when 0 (zero), blank, n/a, -, etc. have been entered on the Form 720 for these entries.

(31) IRM 3.12.220.6.31 - Added Error Code 422 correction procedures ensuring presence of Patient Centered Outcomes Research average number of lives covered and Col. (a) x Col. (b) tax. Clarified guidance on Patient Centered Outcomes Research tax when resolving Error Code 422. Also updated procedure for clearing Error Code 422.

(32) IRM 3.12.220.6.33 - Corrected to issue manual refunds for $1 million and over.

(33) IRM 3.12.220.8.2.1(2) - Removed reference to preaddressed labels.

(34) IRM 3.12.220.8.2.3 - Added note to (5) table. When a taxpayer files a January return in November, or a January or February return in December suspend with Action Code (AC) 480 until January.

(35) IRM 3.12.220..8.2.22(1) - Removed reference to preaddressed labels.

(36) IRM 3.12.220.9.6 - Added a note in the instance a taxpayer files a January return in November, or a January or February return in December to suspend with AC 480 until January. Clarified language for processing early filed Form 2290.

(37) IRM 3.12.220.9.19(3)e) - Removed reference to preaddressed labels.

(38) IRM 3.12.220.9.19.1 - Removed erroneous instruction regarding bringing up underprints and added note regarding reprocessable documents.

Effect on Other Documents

This IRM supersedes IRM 3.12.220 dated November 5, 2012 (effective January 1, 2013). This IRM also incorporates IRM Procedural Updates (IPUs) 13U0126, 13U0190, 13U0829, 13U0982, 13U1183, 13U1294, and 13U1355.

Audience

Wage and Investment Submission Processing Error Resolution

Effective Date

(01-01-2014)

Paul J. Mamo
Director, Submission Processing
Wage and Investment Division

3.12.220.1  (01-01-2014)
Overview

  1. The processing of the Form 720, Quarterly Federal Excise Tax Return, and the Form 2290, Heavy Highway Vehicle Use Tax Return, are centralized at the Cincinnati Submission Processing Campus and should be forwarded to this center for processing.

    Note:

    On July 20, 2011, the IRS issued temporary regulations (IR Regulation Section 41.60719(a)-1T; TD9537: REG-122813-11) that extend the Form 2290 due date to November 30, 2011 for taxable vehicles first used on public highways during the months of July, August, and September 2011. As of July 20, 2011, the tax was scheduled to end after September 30, 2011. The tax has since been extended through September 30, 2017.

  2. The instructions contained in this text are used by the campus for correcting errors made by taxpayers as well as those made by campus operations.

    1. These instructions pertain to the Error Resolution System (ERS) and are your main source of information for correcting the record on the screen.

    2. Additional procedures can be found in IRM 3.12.38, Error Resolution - BMF General Instructions, and IRM 3.11.23, Returns and Document Analysis - Excise Tax Returns, for correcting records on the screen and the return document controls, inventories, and management reports.

  3. The ERS examiner is not expected to review or redo the work of the Document Perfection examiner. However, if an error or omission is noticed then enter the correct information on the return and the screen display.

  4. For Form 720 the:

    • Tax Class is 4.

    • Document Code is 20.

    • Master File Tax (MFT) Code is 03.

  5. For Form 2290 the:

    • Tax Class is 4.

    • Document Code is 95.

    • Master File Tax (MFT) Code is 60.

  6. Use the following to report time spent and volume completed for correcting error records:

    • Form 720: 340–11800

    • Form 2290: 340–12300

3.12.220.1.1  (01-01-2014)
General

  1. This IRM cannot address every possibility that may arise while correcting returns or documents. Taxpayer intent must be taken into consideration. In some cases, it may be necessary to refer the issue to your subject matter expert (SME), lead and/or manager to determine the proper corrective action.

  2. Records will be placed into the Error Inventory or Workable Suspense Inventory for correction.

  3. Once you access a record it will be displayed on the screen for resolution of the error by:

    1. Correcting the record

    2. Placing the record in suspense until additional information is received

    3. Rejecting the record from pipeline processing

  4. All modules or issues involving a balance of ≡ ≡ ≡ ≡ and over is worked as a top priority to reduce the volume of large dollar debit and credit inventory.

  5. Corrections will include errors in editing, transcribing, taxpayer errors, or notifying the taxpayer of the error on the return.

3.12.220.1.2  (01-01-2014)
♦Business Master File (BMF) Consistency♦

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

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

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

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

3.12.220.1.3  (01-01-2014)
♦IRS Employee Contacts with Taxpayers - RRA 98 Section 3705(a)♦

  1. The Restructuring and Reform Act of 1998, Section 3705(a) provides identification requirements for all IRS employees working tax related matters.

  2. All IRS employees who communicate by telephone, correspondence, or face to face with taxpayers, or their representatives, on tax related matters are required to provide a minimum amount of identification information which must include:

    1. Title (e.g., Mr., Mrs., Ms., Miss).

    2. Last name, and

    3. Employee's identification (ID) number (e.g., Integrated Data Retrieval System (IDRS), badge, or ID Card).

    Note:

    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3, Accounts Management and Compliance Services - Operational Guidelines Overview. Also, before leaving any messages on a taxpayer's answering machine, review IRM 11.3.2.6.1, Leaving Information on Answering Machine/Voice Mail. Fax procedures contained in IRM 11.3.1.11, Facsimile Transmission of Tax Information, must be followed when faxing confidential information to the taxpayer.

  3. This information will provide taxpayers with enough information to identify an IRS employee who has previously assisted with tax related matters.

  4. All correspondence (including electronic transmitted facsimiles and E-mail) must include a telephone number to which a taxpayer's question can be directed.

  5. Secretaries, receptionists or other people who answer the telephone in functional offices need to identify themselves but should provide their ID Card (badge) number only if they are answering telephones that are routinely used to provide tax or account information.

  6. Toll free number employees should also provide their location for identification purposes.

  7. Correspondence, whether sent directly to the taxpayer or to the taxpayer's personal representative, must contain the required identification information.

  8. Manually generated and handwritten correspondence must include:

    1. Title (e.g., Mr., Mrs., Ms., Miss),

    2. Last name,

    3. Employee's identification number (IDRS, badge, or ID Card), and

    4. Telephone number where the taxpayer's question can be directed.

  9. Automatically generated correspondence and letter systems computer generate the IDRS or identification number. If it is not generated, the correspondence must include:

    1. Title (e.g., Mr., Mrs., Ms., Miss),

    2. Last name,

    3. Employee's identification number (IDRS, badge, or ID Card), and

    4. Telephone number where the taxpayer's question can be directed.

  10. Correspondex letters will require a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to any questions that the taxpayer may have about the correspondence or the employee is asking the taxpayer to provide additional case related information. Otherwise, if the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

  11. E-mail and electronic transmitted facsimiles to taxpayers on tax related matters, are considered manually generated correspondence and must include the required identification information. (See 8 above.)

  12. When telephone contact is made with taxpayers or their personal representative on tax related matters the following must be provided during the conversation:

    1. Title (e.g., Mr., Mrs., Ms., Miss)

    2. Last name, and

    3. Employee's identification number (IDRS number, badge, or ID Card).

  13. When face to face contact is made employee identification must be provided during the conversation and must include:

    1. Title (e.g., Mr., Mrs., Ms., Miss),

    2. Last name, and

    3. Employee's identification number (IDRS number, badge, or ID Card).

  14. When a taxpayer insists on speaking with a specific employee who previously handled the inquiry or request, or complains about the level of service previously provided, every attempt should be made to resolve the taxpayer's inquiry.

  15. It is not necessary to repeat the ID Card (badge) number on a subsequent contact when the nature of an employee's work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either telephone or in person) the ID Card (badge) number on the first contact.

3.12.220.1.4  (01-01-2014)
♦Taxpayer Advocate Service (TAS) Referrals♦

  1. Refer taxpayers to the Taxpayer Advocate Service (TAS) (see IRM Part 13, Taxpayer Advocate Service) when the contact meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria) and you can't resolve the taxpayer's issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4Same Day Resolution by Operations. When referring cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance and Application for Taxpayer Assistance Order, and forward to TAS in accordance with your local procedures.

3.12.220.1.4.1  (01-01-2014)
♦TAS Service Level Agreements (SLA)♦

  1. The National Taxpayer Advocate has reached agreements with the Commissioners of the Wage and Investment (W&I) Division, Small Business and Self Employed (SB/SE) Division, Tax Exempt and Government Entities (TE/GE), Criminal Investigation (CI), Appeals, and Large Business and International(LB&I), that outline the procedures and responsibilities for the processing of TAS casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs).

  2. The SLAs are located at http://tas.web.irs.gov/policy/default.aspx under the heading "Policy/Procedures/Guidance" .

3.12.220.1.5  (01-01-2014)
♦Use of Fax for Taxpayer Submissions♦

  1. Tax returns can be received via fax as part of return perfection even if a taxpayer signature is required. In circumstances where contact with the taxpayer has been made and documented, fax signatures are acceptable.

  2. Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to determine which method of contact will be used.

  3. Code and Edit examiners will indicate the fax paragraph on the Form 3696, Correspondence Action Sheet, to advise taxpayers of the option to fax their response.

3.12.220.1.6  (01-01-2014)
Related Forms

  1. Taxpayers may attach the following forms to Form 720 returns.

    Form Title Related IRS Numbers
    Form 6197 Gas Guzzler Tax 40
    Form 6627 Environmental Taxes (Rev 01/2013) 18, 19, 20, 21 and 98
    Form 8849 Claim for Refund of Excise Taxes Form 8849, Claim for Refund of Excise Taxes, if it is being used to support line 4.

    Note:

    If the Form 8849 is not being used to support line 4 of the Form 720, detach, make a copy of the Form 720 and forward to the Excise Operations.

    Note:

    If the Form 8849 is attached to Form 2290 and it is not being used to support Line 5 of Form 2290:

    a) detach Form 8849
    b) make a copy of the Form 2290
    c) attach the Form 8849 to the copy of the Form 2290 and forward to the Excise Operations.


  2. Form 8849 is used to file a claim for refund by:

    1. An ultimate purchaser of gasoline, gasohol, aviation gasoline, diesel fuel, kerosene, aviation fuel (other than gasoline), and liquefied petroleum gas (LPG),

    2. A registered ultimate vendor of undyed diesel fuel or undyed kerosene,

    3. A gasohol blender for gasoline used to produce gasohol,

    4. A gasoline wholesale distributor for gasoline sold for certain non-taxable uses, (export, use by non-profit educational organization, use by state, in production of special fuels, use in foreign trade)

    5. Persons filing IRC 4081(e) claims,

    6. Persons making other claims.

3.12.220.1.7  (01-01-2014)
Error Inventory Report (ERS 13-40)

  1. Daily the computer will furnish the Error Inventory Report showing the blocks by the block control number and block document locator number (DLN) in DLN order. Each batch will be on separate pages. Blocks received from Blocks Out of Balance (BOB) Correction will be listed separately.

  2. A copy of the Error Inventory Report can be placed on the carts of documents and used as a charge out. This will help indicate when a cart of documents is completed.

  3. To ensure work carried over from a previous day has priority, the first line of the Error Inventory Report will show the number of working days the records on that page have been in the Error Inventory.

3.12.220.1.8  (01-01-2014)
Workable Suspense Inventory Report (ERS 13-42)

  1. Daily the computer will furnish the Workable Suspense Inventory Report showing the records by Program in DLN order by status.

  2. To ensure that we work the oldest work as a priority, the first line of the report will show the number of working days that the records have been in the Workable Suspense Inventory.

3.12.220.1.9  (01-01-2014)
Types of Errors

  1. ERS identifies errors according to type (found in the record heading) and priority.

  2. This IRM furnishes instructions for correcting these errors. The tax examiner (TE) will enter the section using Command Code (CC) GTSEC, and enter the missing data.

    1. Priority I - (Action Code Errors) - lncorrectly edited or transcribed Action Codes (AC) are assigned to a return.

    2. Priority II - (Section Error - Distributed Input System/Integrated Submission and Remittance Processing (DIS/ISRP) and Terminus) the system displays a DIS/ISRP Section Error when it detects an error. The system displays a terminus section error when an alpha is transcribed in a numeric field or vice versa or a variable length field contains an incorrect size.

    3. Priority III - (Field Validity Errors) - Any field failing to meet the requirements for that field.

    4. Priority IV - (Error Code - Math and Consistency Errors) - The system assigns a record and error code because of a math error or an inconsistency between fields.

    Caution:

    A tax examiner may find records where programming has not furnished an error section that we need to solve an error. We should report this to Headquarters (HQ) for correction of the display.

  3. A tax examiner may correct a higher numbered priority error that will cause a lowered numbered priority error to be displayed.

3.12.220.1.10  (01-01-2014)
Error Codes

  1. The computer generates an Error Code to a record with a numerical order. ERS will display the Priority with the lower number coming out first.

  2. Error Codes require one of four actions:

    1. Correct the invalid field/math condition.

    2. Assign a Taxpayer Notice Code (TPNC) in the appropriate field.

    3. Verify and clear the error with a "C" code in the CLEAR field.

    4. Suspend (SSPND) the document with the appropriate Action Code (AC).

3.12.220.1.11  (01-01-2014)
Command Codes (CC)

  1. The Command Codes (CC) used for corrections tells the system what action to take. An error message will appear if we do not enter CC in a valid format. The following command codes are briefly described and taken from IRM 3.12.38, Error Resolution - BMF General Instructions.

    1. BMFOL - Will provide nationwide BMF entity and tax data information on line for tax accounts that are in credit or debit status and contains freeze conditions or open IDRS control bases. It will also display a list of accounts moved to the retention register. Other accounts that are not on the retention register will be available on line within 24 hours upon request.

    2. BRTVU - Provides business return transaction information. This file consists of original input return data, including schedules. This return information includes Code and Edit, ERS, and computer generated fields.

    3. CRECT - Used to enter a correction.

    4. DLSEC - Used to delete a section of a record.

    5. ENMOD - or ENMODA - Used to research for the Entity Module.

    6. ERINV - Used to research a DLN or taxpayer identification number (TIN) on ERS.

    7. ERVOL - Used with a Status Code to display the number of ERS records in the current Workable Inventory.

    8. GTREC - Used to find the first error in a block in the Error Inventory or a specific record in the Workable Suspense Inventory. It may also be used to redisplay any uncorrected error.

    9. GTRECQ - Used to retrieve and correct a record selected for quality review.

    10. GTRECW - Used to retrieve and correct an error record that we have erroneously worked. We can also use it just after we have worked a record and after a block has been completed.

      Reminder:

      We can only use it on the day that we worked the record or block.

    11. GTSEC - Used to obtain the display of any section of a record in process.

    12. INOLE - Used to research the entity module (name control, filing requirement(s), employment code(s) and address(es).

    13. IRPOL - Will provide two payee addresses if present, filing status, one payer name and address, cross reference information, and a summary of up to 36 IRP money amounts by income type.

    14. ISRP - Integrated Submission and Remittance Processing was phased into the Campuses in 1999. It replaced the older Distributed Input System (DIS) and Remittance Processing System (RPS) systems previously in operation. The ERS function has access to the new system via a terminal in their area. To determine which part of ISRP you are working with, the terms "DIS/ISRP" and "RPS/ISRP" are used throughout the text.

    15. MFTRA - Used to request a transcript for a specific TIN. Then for an on screen display, use ACTRA.

    16. NAMEE/NAMEB - Used to research for missing or invalid employer identification number (EIN). We enter name and address to search the Name Search Facility (NSF),

    17. NWDLN - Used to change (renumber) the DLN and MFT of a record and a reject record (suspense correction only).

    18. RJECT - Used to reject a record from ERS (suspense correction only).

    19. SSPND - Used to enter an Action Code and place a record in suspense.

    20. UPTIN - Used to display all open and closed unpostables for a specific TIN and can be used for account research.

3.12.220.1.12  (01-01-2014)
Action Codes (AC)

  1. The ERS Action Code (AC) will tell:

    1. What information is missing from the return.

    2. Which records the system is rejecting from processing.

    3. When we need taxpayer correspondence.

    4. What specific in house research or action is needed.

  2. Code and Edit will:

    1. Assign an AC in the bottom left of a numbered return when the document is unprocessable.

    2. Attach Form 3696, Correspondence Action Sheet, when we need taxpayer contact.

    3. Attach Form 10886, Reject Routing Slip, with explanation of what additional information is needed.

  3. The DIS/ISRP Operator will enter the AC assigned by Code and Edit.

  4. If the assigned AC is valid (other than 001) the record will be placed in the Workable or Unworkable Suspense Inventory.

  5. If the assigned AC is invalid, incomplete, or 001 the system will assign the record to the Error Inventory for correction or deletion of the code.

  6. AC 001 Input Document is generated or entered by ERS with CC SSPND when the BOB Resolution Function has added a missing document by inputting only the Name Control and TIN of the Document. Follow procedures in IRM 3.12.220.2, Priority I AC Errors.

  7. An ERS TE may enter an AC on a record, delete or correct an invalid AC, or overlay the present AC with another. Enter a valid AC with the following CCs.

    1. SSPND will clear the record from the screen and place the record in either Workable or Unworkable Suspense.

    2. RJECT will reject the record from ERS and SCCF will automatically update the rejected records.

    3. NWDLN will reject the record from ERS and establish a new DLN under which the record will be reinput.

  8. Only one AC at time may be assigned to a record.

  9. The priority of the ACs will be 310, 320, 4XX, 6XX, 3XX, and 2XX.

  10. See Exhibit 3.12.220-4, Action Codes.

3.12.220.1.13  (01-01-2014)
Computer Condition Codes (CCC)

  1. Computer Condition Codes (CCC) identify a special condition or computation for the computer and post to Master File.

  2. Code and Edit will enter these codes in the blank space in the general area of the name and address.

  3. Below is a chart showing the CCCs, their definitions and the checks.

    Codes Definition Validity and Consistency Checks Remarks
    C Unexplained Adjustment Request
    1. Must have an entry in Field 0104. (Error Code 032)

    2. Should not be used with CCC 4 or CCC Z.

    1. Adjustment should be ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. Secured returns must be sent back to originator.

    D Reasonable cause for failure to pay taxes timely   CCC D will no longer be edited by Code and Edit if the taxpayer requests abatement for Failing to Pay Timely when the return is submitted. Code and edit will send Letter 1382C, which will inform the taxpayer of the proper procedure to follow to request abatement if and when a penalty is assessed.
    In cases of Presidentially Declared disasters, Code and Edit examiners will be provided with coding procedures.
    E Credit Election Cannot be coded S or F (Field Error)  
    F Final Return Cannot be coded E or G (Field Error)  
    G Amended Return
    1. No other codes allowed except CCC W and/or CCC 3 (Field Error).

    2. Must have received date (Error Code 028).

    3. All fields must be blank except 01NC, 01EIN, 01TXP, 01RCD, 01CCC and 01CRD (Error Code 010).

     
    J Reasonable Cause   CCC J will no longer be edited by Code and Edit if the taxpayer requests abatement for Failing to Deposit Timely when the return is submitted. Code and Edit will send Letter 1382C which will inform the taxpayer of the proper procedure to follow to request abatement if and when a penalty is assessed.
    In cases of Presidentially Declared disasters, Code and Edit examiners will be provided with coding procedures.
    L
    1. Form 720 - Identified IRC §6114 Returns.

     
    1. Edit CCC L if the taxpayer writes" IRC §6114 Election" on the return or a letter referring to IRC §6114 or Form 8833, Treaty Based Return Position Disclosure Under IRC 6114 or IRC 7701(b), is attached to the return.

    2. Edit CCC L if the taxpayer has notated in red print at the top of the Form 720 return the following: "Election to participate in FET Voluntary Compliance Initiative pursuant to Announcement 2008-18."

    Note:

    FET stands for Federal Excise Tax.

    O Module Freeze   Used when we issue manual refunds.
    R Reasonable Cause for delinquency.   CCC R will no longer be edited by Code and Edit if the taxpayer requests abatement for delinquency penalty when the return is submitted Code and Edit will send Letter 1382C, which will inform the taxpayer of the proper procedure to follow to request abatement, if, and when a penalty is assessed.
    In cases of disaster, Code and Edit examiners will be provided with coding procedures
    S Computer generated overpayment to be refunded Cannot be with a CCC E.  
    W Return cleared by Statute Control.
    1. Must be present if processing date is more than 2 years and 9 months after the Return Due Date on a CCC G return and on all other returns if it is more than 2 years and 9 months after the Return Due Date or the Received Date, whichever is later (Error Code 001).

    2. Processing date must be equal to or greater than 2 years after Return Due Date (Error Code 001).

     
    X Credit Freeze    
    Z Missing Abstract number with a corresponding debit (Form 720).
    1. IRS Number "80" must be present. (Error Code 412).

    2. Associated tax must be ≡ ≡ ≡ ≡ ≡ ≡ (Error code 413).

    Do not use on secured returns. If necessary refer the return to the originator for clarification of the abstract number.
    3 Identifies taxpayers that should not receive credit interest. Used when no reply to correspondence is received; suppresses credit interest from generating at master file. Input a CCC 3.
    4 Return prepared by the IRS under IRC §6020(b). Cannot have CCC R (Field Error). Do not use with CCC C or Z.

3.12.220.1.14  (01-01-2014)
Taxpayer Notice Code (TPNC)

  1. The Taxpayer Notice Code (TPNC)

    1. Used when a error/math error is present involving the tax liability or balance due/overpayment.

    2. Entered on the terminal screen following the literal "NC" .

    3. Entered using CC CRECT.

    4. Coded in the upper left area of the entity section of the return.

    5. Entered after determining no other corrections to the error condition are needed.

    6. Indicates to the computer that no other corrections to the screen display are needed.

  2. When we assign a TPNC, an audit trail showing the changes made must be written on the return at the point of change.

  3. Each error/math error will have certain TPNC that is valid to clear the error/math error. The TPNC assigned to the error and entered in the "NC" Field must be valid for that error or the same as one previously assigned. The system will return the error when we assign a code that is not valid. A previously assigned notice code can only be used if it has been validated for that error code.

  4. Each error/math error display will require a correction to a field or the entry of a TPNC. A TPNC assigned to a Math Error will be displayed with subsequent displays for the record. The field is used for display purposes only and is not correctable.

  5. A return can have a total of three TPNCs. If we assign more than three codes, use TPNC 90 instead and list the errors for Notice Review to type and send to the taxpayer.

    Note:

    Once we transmit a valid TPNC to the ERS record, the Math Error will clear the screen; therefore, if more than one code is applicable, they must enter them with the same transmission. The limit of three TPNCs includes those assigned under previously displayed error codes. All previously assigned codes are displayed in the upper right portion of the screen.

  6. TPNC 90 is actually a "fill in" , and used when no other TPNC fully explains the correction(s) made. The TE will write a brief explanation of the error and attach it to the face of the return. We should charge the return out and route directly to Notice Review. Notice Review will type the Math Error explanation on the notice before mailing to the taxpayer. TPNC 90 CAN BE USED with other TPNCs.

  7. Once we transmit a code to the record, we may change it in the following manner:

    1. If errors remain after transmitting the TPNC (the record was not cleared), the TE can create an error with higher priority (i.e., enter a CCC G in Field 01CCC and transmit the record, then remove the CCC G and transmit the record again).

    2. A correction you make erases an error code that you previously cleared with a TPNC or C Clear Code. In this case the system will delete the C or TPNC on this error and all subsequent error codes. All subsequent Error Codes will be displayed for resolution, even though they may have been displayed previously.

    3. We may rework records that we have worked using CC GTRECW. See IRM 3.12.38, Error Resolutions - BMF General Instructions, for further details.

    4. All TPNCs are erased when we suspend a record with CC SSPND.

    5. Unfinished records from the previous day will contain none of the TPNCs assigned to the records that were not completely worked.

  8. TPNCs that are valid for Form 720 are listed below.

    Caution:

    Some of the TPNCs may have been changed or deleted.

    TPNC Explanation
    01 We found an error in the computation of the balance due or the overpayment amount.
    02 We cannot allow the amount (or a portion of the amount) shown for claims from Schedule C because it was not claimed within 3 years from the time the original return was filed or within 2 years from the time the tax was paid.
    03 We found an error in the computation of your total tax.
    04 We cannot allow part of the amount shown for claims from Schedule C, because claims on Form 720 cannot exceed the tax reported on the return. To receive any remaining credit or refund, you may use Form 8849, Claim for Refund of Excise Taxes, or if applicable, Form 4136, Credit for Federal Tax Paid on Fuels.
    10 We found an error in the amount shown for claims on Schedule C.
    24 We found an error in the amount reported as total Federal Tax Deposits for the quarter and/or overpayment from the previous quarter.
    90 Blank. TPNC 90 is a fill in notice code. Use it when no other code fully explains the adjustment or when more than three notice codes are necessary. TPNC 90 can be used with other notice codes.

  9. TPNCs that are valid for Form 2290, Heavy Highway Vehicle Use Tax Return, are listed below.

    TPNC Explanation
    01 We found the computation of tax was not correct.
    02 The tax rate used to calculate the amount of tax due per individual vehicle category on page two is incorrect.
    03 Partial year vehicles reported on tax returns covering multiple tax periods are taxable for both the partial year tax period and for the current annual tax period.
     
    04 You don’t qualify for paying in installments because the installment paid with your return was insufficient or the return was not filed by the due date.  
    05 The amount of total tax due reported on page two does not equal the amount of tax reported on page one.  
    06 Only additional vehicles acquired after the beginning of the fiscal year are to be reported on supplemental returns.  
    14 We found an error in the computation of your total tax minus your credits on Part I line 6. To receive any remaining credit or refund, you may use Form 8849, Claim for Refund of Excise Taxes.  
    90 Used when other TPNCs do not cover the error. Notice Review will type the explanation.  

3.12.220.1.15  (01-01-2014)
Clear Code "C" and "000"

  1. Use letter "C" to clear the Error Codes (consistency errors) when the error condition does not require a change or correction to the record display. The display will include a clear field, labeled "CL" to show the possible need of a Clear Code.

  2. Error Codes showing the possible need of a Clear Code are cleared by either correcting the record or entering a "C" to show no correction is needed.

  3. Clear Code "C" is also used for clearing the AC from the screen after corrections for the AC have been completed. With ACs 410 and 700, the AC must be cleared initially so we can resolve other errors in the record. The presence of "C" with Priority I Error shows that you have made the corrections and now wish to have any other errors on the record displayed. (Allowed for Suspense Correction Only).

  4. The "000" is also used as a Clear Code when deleting ACs. It will only be used for incorrect ACs and you have decided there is no reason to suspend the record. The "000" cannot be used in suspense correction.

  5. Programming erases all "C" Clear Codes for Error Codes when a record is suspended with the CC SSPND.

  6. Unworked records from the previous day will contain none of the "C" Clear Codes that were assigned to a record that was not completely worked. Programming erases all "C" Clear Codes for Error Codes and ACs for the new day's Error Inventory and Workable Suspense Inventory.

  7. Error codes (including the ones which may require a "C" Clear Code) are numbered in consecutive order for correcting.

    1. Your correction of an error may create an Error Code with a higher priority code than the one(s) you have cleared. Should this occur, programming will erase all "C" Clear Codes and TPNCs for Error Codes with a lower priority than the one created.

    2. Beginning with the higher priority than the one created, the system will continue displaying Error Codes for the record that may be different from those previously displayed.

    3. You will make corrections erasing an Error Code that you previously cleared with a "C" and now the error condition no longer exists. Should this occur, the "C" Clear Code for this error and all "C" Clear Codes and TPNCs for all previous errors will be deleted.

    4. If after the computer deletes the "C" Clear Codes and TPNCs there are errors remaining on the record, the system will display them for correction even if they were previously displayed.

  8. The "C" Clear Code will prevent any other corrections to the current error display. If we must enter a correction and the error is no longer displayed because you have already transmitted, use CC GTRECW and make any necessary corrections.

3.12.220.1.16  (01-01-2014)
Refund Returns - 45 Day Jeopardy and $1 Million or More Refunds

  1. Document Perfection and ERS are responsible for identifying refunds and for initiating requests for manual refunds.

    Note:

    Expeditious processing of refund returns is critical if the 45 day interest free period is about to expire.

  2. Action Code 341 should be edited by Code and Edit to show that a manual refund is needed.

  3. If these conditions are not identified in Code and Edit, ERS must follow the following criteria.

    IF: THEN:
    The processing date is more than 20 days after received date or the return due date (whichever is later) and the 45 day interest free period is in jeopardy and the refund amount is ≡ ≡ ≡ ≡ or more,

    Note:

    Refund in this instruction means only the amount requested to be refunded to the taxpayer, not overpayments transferred to other periods.

    Enter Action Code 341 and route to ERS/Rejects for manual refund.
    The refund is $1,000,000 or more. Enter Action Code 341 and route to ERS/Rejects for manual refund.

3.12.220.1.17  (01-01-2014)
Statute Control Cases

  1. A statute control document is:

    1. Any non-CCC G coded return with a processing date equal to or more than 2 years and 9 months after the return due date or Received Date, whichever is later.

    2. Any CCC G return with a processing date equal to or more than 2 years and 9 months after the Return Due Date.

  2. A statute control document will appear on the screen with Error Code 001, unless CCC W is present on the record, CCC W shows Statute Control has cleared the record.

    IF: THEN:
    Return has an attachment or stamp that shows previous clearance by Statute Control Group. Enter CCC W in Field 01CCC.
    Return prepared by Exam (SFR in top margin) with Form 13133, Expedite Processing Cycle. Enter CCC W (does not need clearing by Statute Control).
    Return does not have an attachment or stamp from Statute Control Group. Treat the record as unprocessable, suspend the record with AC 310 for routing to Statute Control.
    If working the Error Inventory, return documents to the block.
    If working the Workable Suspense Inventory, notate 2nd and 3rd copy of Form 8161, ERS Return Charge Out, with "AC 310" and the current date. Handle the document as instructed for statutory clearance.

3.12.220.1.18  (01-01-2014)
♦CADE 2♦

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

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

  3. The new BMF campus cycles are:

    1. Campus Cycle: Thursday - Wednesday

    2. Master File Processing: Friday - Thursday

    3. Notice Review Saturday: Monday (8+ days)

    4. Unpostables: New available Tuesday; Closing Tuesday

  4. BMF transaction posting time frames are outlined as follows:

    1. Transactions will be viewable using CFOL command codes on Saturday following the weekly Master Files processing run on Thursday.

    2. Transactions will be viewable as posted transactions using IDRS command codes on Monday, following the weekly Master File processing run on Thursday.

      Note:

      With the acceleration of the IDRS weekly analysis being performed the weekend directly after the Master File processing on Thursday, transactions will be posted instead of in pending status on Monday.

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

    • 01 = Friday

    • 02 = Monday

    • 03 = Tuesday

    • 04 = Wednesday

    • 05 = Thursday

    Note:

    BMF cycle posting dates on BMFOL will continue to reflect YYYYCC. YYYY will indicate the year. CC will indicate the posting cycle. BMF cycle posting dates in TXMOD will reflect a format of YYYYCCDD. The DD value will be 08.

3.12.220.1.19  (01-01-2014)
Correspondence Imaging System (CIS) Returns

  1. Correspondence Imaging System (CIS) is an inventory system for scanning all Accounts Management (AM) receipts into digital images and working the cases from those images.

  2. "CIS" returns are identified with "CIS Image. Do not correspond for Signature" stamped below the signature line or "CIS" annotated on the front of the return.

  3. Accounts Management is required to ensure "CIS" returns are complete for processing.

  4. Follow the correspondence instructions below for "CIS" returns.

    If... And... Then...
    The "CIS" return has a Form 13596 or Form 3893 attached,

    Note:

    If there is an indication on the return that correspondence has been sent (e.g., CCC "3" is edited on the return), do not route return to Accounts Management. Continue Processing.

    It is not a complete return (i.e., missing signature, schedules, or forms).
    1. Remove the return from the batch

    2. Void the DLN.

    3. Attach Form 10886, Reject Routing Slip, to the return and route to Accounts Management to secure missing information.

    The "CIS" return does not have a Form 13596 or Form 3893 attached It is not a complete return (i.e., missing signature, schedules, or forms). Follow normal correspondence procedures.

3.12.220.1.20  (01-01-2014)
Pre-Computed Penalty

  1. A return that shows a penalty other than a delinquency, late payment, or Federal Tax Deposit (FTD) on it; e.g., fraud, etc., and the notation "3465 Prepared" does not appear on the return, then the computation of penalty must be done by the Excise Operations. Route as follows:

    1. Photocopy return.

    2. Prepare Form 3465, Request for Adjustment, to request an assessment of the penalty. Notate in remarks, "Photocopy - Do Not Process" .

    3. If the remittance includes an amount applicable to all or part of the penalty referred to above, indicate on Form 3465 that this portion of the remittance is available for application to the assessment.

    4. Enter CCC X to freeze the refund until the assessment for the penalty posts to BMF.

    5. Enter CCC R when an assessment of "fraud" penalty is shown.

    6. Note on the return "3465 Prepared" and route Form 3465 to Excise Operations at Stop 5701G.

3.12.220.1.21  (01-01-2014)
IRC Section 6020(b) Returns

  1. IRS has the authority to prepare returns from personal knowledge or from other information for any person who fails to file a return or files a false or fraudulent return.

    1. You can identify these returns by the presence of the notation "Return prepared under IRC 6020(b)."

    2. This notation is usually on or near the signature line.

    3. The return is either signed by a revenue officer or other IRS official with the employee number on the bottom of the return, or Form 5604, IRC 6020(b) Action Sheet, is attached. CCC 4 must be entered on all IRC 6020(b) returns.

    4. Process the return based on the information shown so that the return will reflect the figures submitted by the revenue office.

    5. DO NOT correspond with the taxpayer for any unprocessable condition.

    6. DO NOT send a TPNC.

    7. DO NOT use CCC C, R, or Z with CCC 4. If the abstract number is not shown, the return should be referred to the originator. Suspend with AC 640 and attach Form 10886, Reject Routing Slip, with an explanation.

    8. If the return is completely unprocessable, ask the supervisor to refer the return to the originator's compliance function.

    9. An IRC §6020(b) return may be processed without the forms and schedules attached and can not be referred to the originating function. Continue Processing.

    10. Return an unsigned return IRC §6020(b) to Campus Collection Branch (SCCB) for proper signature. If return is numbered, enter SSPND 640 and attach Form 10886 noting "Unsigned 6020(b) Return-SCCB" .

3.12.220.1.22  (01-01-2014)
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.

3.12.220.1.22.1  (01-01-2014)
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.

3.12.220.1.23  (01-01-2014)
Field 01CBP - Designee Checkbox Personal Identification Number (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.

3.12.220.1.24  (01-01-2014)
Field 01PSN - Paid Preparer's Tax Identification Number (PTIN)

  1. The 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 Procedures:

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

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

3.12.220.1.24.1  (01-01-2014)
Field 01PEN - Paid Preparer's EIN

  1. The Preparer's EIN is located below the PTIN on the right hand side. This field is not valid for any forms prior to January 2005.

  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. Line through or circle the preparer's EIN if it is invalid.

3.12.220.1.25  (01-01-2014)
Field 01PTN - Paid Preparer's Telephone Number

  1. The Preparer's Phone 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.

3.12.220.1.26  (01-01-2014)
Dummy Return for Overflow Money Amounts Prepared by Rejects

  1. This procedure will be used by Rejects function in Submission Processing.

  2. Annotate on the original return, "Dummy Return prepared due to overflow document."

  3. Recompute the tax data and enter the maximum corrected allowable amount(s) on the screen display and the return.

  4. Prepare a "Dummy Return" by entering the remaining overflow money amount(s) on the appropriate lines.

  5. Enter the following data on the "Dummy return" :

    1. On the top of the return write "Prepared from Overflow Return" .

    2. Entity Data from the original return.

    3. The DLN from the original return.

    4. CCC G in Field 01 CCC.

    5. In signature area write "Signature on Original Return" .

    6. Attach Form 10886 to completed "Dummy Return" .

    7. Route to Receipt and Control to have the "Dummy Return" numbered and processed.

    Note:

    Beginning January 2009 Form 720 Lines 4, 8, 10, 11 and Schedule C amounts will have a field length of 13 positions (dollars and cents). This procedure should no longer be necessary for these fields as long as the amounts do not exceed $99,999,999,999.99.

3.12.220.2  (01-01-2014)
Priority I AC Errors

  1. All the information in this section will pertain to Form 720, Quarterly Federal Excise Tax Return, as well as the Form 2290, Heavy Highway Vehicle Use Tax Return. All records that have an invalid AC will be displayed as a Priority I error. These errors and the correction procedures are explained in this section. If the AC is valid (except 001), it will be placed in the Suspense inventory.

3.12.220.2.1  (01-01-2014)
Error Inventory Correct Procedures

  1. The header portion of each record will show:

    • Document Locator Number (DLN)

    • Taxpayer Identification Number (TIN)

    • Check Digit/Name Control

    • Processing Date

    • RPS (literal printed if the document was processed through the remittance processing system or the ISRP system)

    • ERS Status Code

    • Command Code

    • Previously assigned TPNC

  2. Before making corrections to the screen displays make sure the DLN of the screen matches the DLN of the document.

  3. Make sure the taxpayer's entries are on the correct lines of the tax return.

    1. Check and correct all coding and transcription errors in each section and field of the screen display and on the return.

    2. Make sure all sections and fields have been transcribed.

  4. When making corrections to the screen display, also correct the return.

    1. Leaving a "working trail" is important for others who may work with the return in the future.

    2. For each correction made to the taxpayer's figures on the return, a trail is to be left at the error point.

    3. Place an "X" to the left of the incorrect data on the return and write the correct data to the left or above it.

    IF: THEN:
    Taxpayer does not have the required entry on the return completed. "X" the entry that is missing and enter the correction to the left of the "X" .
    Missing information is found elsewhere on the return. Arrow it to the correct line.

  5. Money amount errors:

    1. All money fields are dollars and cents.

    2. Before correcting a screen display, be sure the money amounts have been transcribed correctly.

    3. Each field has specific instructions that explain the requirements for money amounts.

  6. Action Code errors:

    1. Check the return to verify that the codes assigned are correct, and check whether it has been transcribed properly.

    2. Check the AC on the return for validity. See Exhibit 3.12.220-4, Action Codes.

    3. Use CC GTSEC before clearing the data from the terminal (AC 001).

  7. When the Block Out of Balance (BOB) Resolution function has added a document to a block by entering only the Name Control and TIN, AC 001 will be computer generated. ERS must enter the remainder of the record.

    1. Enter CC GTSEC for each record section that should contain data. Add the required data.

    2. When all of the sections have been entered, clear the AC by entering "C" in the Clear Code Field.

  8. If suspense action is required, use CC SSPND and enter the correct AC.

  9. If no suspense action is needed, enter "000" in the Clear Field and transmit.

3.12.220.2.2  (01-01-2014)
Suspense Inventory Correction Procedures (Reject Procedures)

  1. Determine if the record can now be resolved with the information available.

    1. If so, make the corrections to the record using the appropriate CC.

    2. After all corrections are made and transmitted enter a "C" in the Clear Field and transmit.

  2. If the error cannot be resolved without additional information, suspend with the appropriate AC using CC SSPND.

    1. Enter the new AC and date on both copies of the Charge Out.

    2. A new Charge Out is not issued for the resuspended record.

    3. Give the return with attached Charge Outs to the Suspended Documents File Unit.

  3. A record may also require rejecting from ERS, either for reinput or voiding.

    1. A record being reinput may be reinput with the same DLN or a new DLN. Notate Charge Out.

    2. A new Charge Out will be issued for the Rejected Document.

    3. Use CC REJECT or NWDLN and enter the appropriate AC.

3.12.220.2.2.1  (01-01-2014)
AC 2IX

  1. Priority I Error, AC 21X, Correspondence:

    IF: AND: THEN:
    Status 321 The reply is available. Follow instructions in the reply before clearing error.
    Status 321 For no reply. Follow IRM 3.12.220.10, No Response Procedures, before clearing the error.
    Status 421   Follow instructions in the reply before clearing the error.

3.12.220.2.2.2  (01-01-2014)
AC 310

  1. Priority I Error, AC 310, Statute Control:

    1. Status 331 or 431.

    2. Document will be furnished with instructions from Statute Control Function.

    IF: THEN:
    Function requests that the record be voided to them. Non-remittance document use RJECT 640.
    Remittance documents use NWDLN 640 (see IRM 3.12.38.3.4.1, General Information-Action Codes) and the DLN of the payment posting voucher that posts the remittance of the year and MFT of the voided statute document.
    Function indicates clearance. Use GTSEC for Section 01, verifying 01TXP, tax period and entering CCC W in 01CCC for Form 720 returns.
    Transmit and then clear the Priority I Error with the C Clear Code.

3.12.220.2.2.3  (01-01-2014)
AC 320

  1. Priority I Error, AC 320, Entity Control:

    1. Status 332 or 432.

    2. Document will be furnished to the tax examiner with instructions from Entity Control.

    3. If the return was referred to them for the Name Control or EIN, enter the correct information.

3.12.220.2.2.4  (01-01-2014)
AC 33X

  1. Priority I Error, AC 33X, Review/Routing to Criminal Investigation Division (CID):

    1. Status 333 or 433.

    2. The document was referred to CID before coming to tax examiner.

    IF: THEN:
    Instructed to void and route a non-remittance return. Use CC RJECT, AC 640 and route.
    Instructed to void and route with remittance return. Use CC NWDLN 640 and route as instructed.

    Note:

    The new DLN is the DLN of the Form 3244, Payment Posting Voucher, that posts the remittance to the year and MFT of the voided document is sent to CID or Unidentified Remittance File (URF) if CID instructs that the remittance is to be applied to the Unidentified Remittance File.

3.12.220.2.2.5  (01-01-2014)
AC 34X

  1. Priority I Error, AC 34X Accounting:

    1. Document will be returned by Accounting to work.

    2. Follow instructions furnished by Accounting before clearing the AC.

  2. This action code is also used when the taxpayer indicates on line 7 that he filed a Form 720X, Amended Quarterly Federal Excise Tax Return, Code and Edit will use AC 342. Check to see if the credit is on the module. If it is and there are no other errors, release. If the credit is not there, use TPNC 90 with the text in the note below. Use Program Code 780-38904 when working this program.

    Note:

    "Your return included an amount on line 7, which represents a credit you want applied from Form 720X. We are currently processing your Form 720X. The balance due on this notice does not include the Form 720X credit. You will be receiving subsequent correspondence regarding your Form 720X credit within six weeks. Any credit will be applied to your Form 720. You do not need to do anything at this time."

3.12.220.2.2.6  (01-01-2014)
AC 35X

  1. Priority I Error, AC 35X, MFTRA Research:

  2. AC Error 351, Status 435

    Indicates Key Index File (KIF) was not available when record was on the Error Inventory. Determine if EIN can be located.

    IF: THEN:
    EIN is located Enter in 01 EIN after using GTSEC for Section 01
    EIN not located Follow instructions in IRM 3.12.220.5.2, Field 01EIN Employer Identification Number, (3) for resuspending (SSPND 320) for referral of document to Entity for EIN.

  3. AC Error 352, 354, or 355:

    1. Status 335 or 435.

    2. Research CC CFOL and NAMEE/NAMEB.

    3. If unable to resolve then resuspend to Entity, AC 320.

  4. AC Error 353:

    Used only if correspondence is necessary and there is no address.

3.12.220.2.2.7  (01-01-2014)
AC 360

  1. Priority I Error, AC 360, Other In House Research:

    1. Status 336 or 436.

    2. Document and instructions from other area will be furnished.

    3. Use CC DLSEC or GTSEC before clearing Priority I Error.

3.12.220.2.2.8  (01-01-2014)
AC 410

  1. Priority I Error, AC 410, Technical Assistance.

    Clear the Priority I Error with the "C" Clear Code, so that other errors in the record might display.

3.12.220.2.2.9  (01-01-2014)
AC 420 through 460

  1. Priority I Error, AC 420 through 460, Management Directive/Suspense:

    1. When instructed to resuspend, use SSPND and the AC as directed.

    2. When instructed to work the record, clear the Priority I Error with the "C" Clear Code, so if other errors exist in the record, they can be displayed.

3.12.220.2.2.10  (01-01-2014)
AC 480

  1. Priority I Error, AC 480, Early Filed.

    Clear the Priority I Error with the "C" Clear Code, so that other errors in the record will display.

3.12.220.2.2.11  (01-01-2014)
AC 490

  1. Priority I Error, AC 490, System Problem:

    1. Instructions are needed from the Computer Branch through your supervisor for working.

    2. If instructions are not furnished for status 349, you may be advised to resuspend, using SSPND 490.

    Caution:

    IT IS IMPERATIVE THAT YOU AWAIT INSTRUCTIONS FROM THE COMPUTER BRANCH OR Computer Systems Analyst (CSA). Once you clear AC 490 and no other error exists in the record it will go to good tape.

3.12.220.2.2.12  (01-01-2014)
AC 51X

  1. Priority I Error, AC 5IX, Missing Document:

    1. Status 451 or 351.

    2. Suspend record with AC 51X to initiate special search.

    3. The Charge Out issued for the missing document may be used for the initial search. It may also be used for subsequent searches by marking "Second Request" , "Third Request" , etc. on the returned Charge-Out from files.

    4. Special search is continued as indicated (see IRM 3.12.38.3.4.1, General Information-Action Codes) until document is located or record is rejected from ERS with AC 670.

    IF: THEN:
    Non-remittance. Use RJECT 670.
    Remittance. Use NWDLN 670 and the DLN of Form 3244 for payment.
    Unable to determine where should be applied. Use NWDLN 670 URF.

3.12.220.2.2.13  (01-01-2014)
AC 560

  1. Priority I Error, AC 560, Form 720 has a value ≥ (greater than/equal to) $1 million:

    1. A listing of returns for which AC 560 was generated will be produced.

    2. Clear the Priority I Error with the "C" Clear Code so that other errors in the record may be displayed.

3.12.220.2.2.14  (01-01-2014)
AC 570

  1. Priority I Error, AC 570, Form 720, Part III, Line 4 has a value.

    1. A listing of returns for which AC 570 was generated will be produced.

    2. These returns will need to be classified by revenue agents from the Centralized Excise Operation (CEO).

    IF: THEN:
    No changes are indicated. Clear the Priority I Error with the "C" Clear Code deleting the AC so that any other errors may be displayed.
    If changes are indicated.
    1. Use CC GTSEC for desired section(s) and make the corrections.

    2. Use TPNC 90 using the text provided by the revenue agent from CEO.

    3. After all corrections are made and transmitted, enter a "C" in the Clear Field.

3.12.220.2.2.15  (01-01-2014)
AC 580

  1. Priority I Error, AC 580, Form 720 has a value ≥ $1 million and Form 720, Part III, Line 4 has an amount.

    1. A listing of returns for which AC 580 was generated will be produced.

    2. These returns will need to be classified by a revenue agent from CEO.

    IF: THEN:
    No changes are indicated. Clear the Priority I Error with the "C" Clear Code deleting the AC so that any other errors may be displayed.
    If changes are indicated.
    1. Use CC GTSEC for desired section(s) and make the corrections.

    2. Use TPNC 90 using the text provided by the revenue agent from CEO.

    3. After all corrections are made and transmitted, enter a "C" in the Clear Field.

3.12.220.2.2.16  (01-01-2014)
AC 585

  1. Priority 1 Error, AC 585 is used to identify Form 2290 filers with correspondence attached.

  2. Clear the error with the "C" Clear Code so that other errors in the record may be displayed.

3.12.220.2.2.17  (01-01-2014)
AC 6XX

  1. Priority I Error, AC 6XX, Rejects

  2. If suspended to Workable Suspense with AC 6XX, review document.

    IF: THEN:
    Agree with recommended reject action. Delete with CC RJECT or NWDLN and the appropriate AC.
    Determine not to delete the record. Clear the Priority I Error with the "C" Clear Code deleting the AC so that any other errors that might exist can be displayed.

3.12.220.2.2.18  (01-01-2014)
AC 700

  1. Priority I Error, AC 700, Duplicate Block DLN:

    1. Clear the Priority I Error with the "C" Clear Code so that other errors in the record might be displayed.

3.12.220.2.2.19  (01-01-2014)
AC 900

  1. Priority I Error, AC 900, Unpostable Records:

    1. The literal for AC 900 will include the Unpostable Code.

    2. Determine if the record can be resolved.

    IF: THEN:
    Error AC 900 can be resolved. Use CC GTSEC for desired section(s) and make the correction(s).
    After all corrections are made and transmitted, enter a "C" in the Clear Field.
    Error AC 900 cannot be resolved. Resuspend the record using CC SSPND with appropriate AC.
    Notate the AC and date on the Charge Out with explanation.
    Send the return and Charge Out to Suspended Document File.

    Note:

    Once the AC 900 is cleared, all other errors on the record can be displayed for correction. If no other errors exist then the record will clear the screen. The record has never posted to Master File. Fields displayed will be processed prior to being an "Unpostable" . The record may contain editing and transcription errors. All Clear Codes and TPNC assigned when previously processed will have been deleted from the record and will need to be assigned again if still applicable.


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