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Part 3. Submission Processing

Chapter 12. Error Resolution

Section 251. Corporation Income Tax Returns (Cont. 2)

3.12.251  Corporation Income Tax Returns (Cont. 2)

3.12.251.16 
Section 14 Data - Form 1120

3.12.251.16.1  (01-01-2012)
Section 14 Fields Errors

  1. Correctable Section 14 fields are listed below:

    Field Designator Field Length Title Location
    14Q01 1 Disregarded Entity Schedule N, line 1a
    14Q02 3 Number of Forms 8865 Schedule N, line 2
    14Q03 1 Direct/Indirect Interest Schedule N, line 3
    14Q4A 1 Controlled Foreign Corporation Schedule N, line 4a
    14Q4B 3 Number of Forms 5471 Schedule N, line 4b
    14Q05 1 Foreign Trust Distribution Schedule N, line 5
    14Q6A 1 Foreign Country Financial Account Schedule N, line 6a;
    14Q6B 2 Foreign Country Code Schedule N, line 6b;
    14Q7A 1 Extraterritorial Income Exclusion (EI) Schedule N, line 7a;
    14Q7B 3 Number of Forms 8873 Schedule N, line 7b
    14Q7C 11 Total EI Exclusion Schedule N, line 7c

3.12.251.16.2  (01-01-2012)
Field 14Q01 - Disregarded Entity

  1. Field 14Q01 is transcribed from the left of Form 1120, Schedule N, line 1.

  2. Invalid Condition - Field 14Q01 is invalid if it is not blank or an entry other than "1," "2" or "3" is present.

  3. Correction Procedures:

    1. Check for coding and transcription errors.

    2. Make necessary corrections.

      If Then
      Form 1120, Schedule N, line 1 box is "yes" Enter "1" in Field 14Q01
      Form 1120, Schedule N, line 1 box is "no" Enter "2" in Field 14Q01
      Both the "yes" and "no" boxes are checked Enter "3" in Field 14Q01
      Neither box is checked Delete Field 14Q01

3.12.251.16.3  (01-01-2012)
Field 14Q02 - Number of Forms 8865

  1. Field 14Q02 is transcribed from the dotted line area of Form 1120, Schedule N, line 2.

  2. Invalid Condition - Field 14Q02 is invalid if it is not all blank or numeric 001 through 999.

  3. Correction Procedure - Correct any coding and transcription errors.

3.12.251.16.4  (01-01-2012)
Field 14Q03 - Direct/Indirect Interest

  1. Field 14Q03 is transcribed from the left of line Form 1120, Schedule N, line 3.

  2. Invalid Condition - Field 14Q03 is invalid if it is not all blank or an entry other than "1," "2" or "3" is present.

  3. Correction Procedures:

    1. Check for coding and transcription errors.

    2. Make necessary corrections.

      If Then
      Form 1120, Schedule N, line 3 box is "yes" Enter "1" in Field 14Q03
      Form 1120, Schedule N, line 3 box is "no" Enter "2" in Field 14Q03
      Both the "yes" and "no" boxes are checked Enter "3" in Field 14Q03
      Neither box is checked Delete Field 14Q03

3.12.251.16.5  (01-01-2012)
Field 14Q4A - Controlled Foreign Corporation

  1. Field 14Q4A is transcribed from the left of Form 1120, Schedule N, line 4a.

  2. Invalid Condition - Field 14Q4A is invalid if it is not all blank or an entry other than "1," "2" or "3" is present.

  3. Correction Procedures:

    1. Check for coding and transcription errors.

    2. Make necessary corrections.

    If Then
    Form 1120, Schedule N, line 4a box is "yes" Enter "1" in Field 14Q4A
    Form 1120, Schedule N, line 4a box is "no" Enter "2" in Field 14Q4A
    Both the "yes" and "no" boxes are checked Enter "3" in Field 14Q4A
    Neither box is checked Delete Field 14Q4A

  4. If Form 1120, Schedule N, line 4a is checked "yes" or Forms 5471 are attached, GTSEC 03. Enter "2" in Field 03ADC and in the margin to the left of “Deductions” section of the return following “2”.

3.12.251.16.6  (01-01-2012)
Field 14Q4B - Number of Forms 5471

  1. Field 14Q4B is a 3 digit field. It is transcribed from the dotted line area of Form 1120, Schedule N, line 4b.

  2. Invalid Condition - Field 14Q4B is invalid if it is not blank or numeric 001 through 999.

  3. Correction Procedures:

    1. Check for coding and transcription errors.

    2. Make necessary corrections.

    3. Enter preceding zeros if a one-digit or two-digit number is shown on the return. Example: "5" must be entered as "005."

3.12.251.16.7  (01-01-2012)
Field 14Q05 - Foreign Trust Distribution

  1. Field 14Q05 is transcribed from the left of Form 1120, Schedule N, line 5.

  2. Invalid Condition - Field 14Q05 is invalid if it is not all blank or an entry other than "1," "2" or "3" is present.

  3. Correction Procedures:

    1. Check for coding and transcription errors.

    2. Make any necessary corrections.

      If Then
      Form 1120, Schedule N, line 5 box is "yes" Enter "1" in Field 14Q05
      Form 1120, Schedule N, line 5 box is "no" Enter "2" in Field 14Q05
      Both the "yes" and "no" boxes are checked Enter "3" in Field 14Q05
      Neither box is checked Delete Field 14Q05

3.12.251.16.8  (01-01-2012)
Field 14Q6A - Foreign Country Financial Account

  1. Field 14Q6A is transcribed from the left of Form 1120, Schedule N, line 6a.

  2. Invalid Condition - Field 14Q6A is invalid if it is not all blank or an entry other than "1," "2" or "3" is present.

  3. Correction Procedures:

    1. Check for coding and transcription errors.

    2. Make any necessary corrections.

    If Then
    The Foreign Country Financial Account box is "yes" Enter "1" in Field 14Q6A
    The Foreign Country Financial Account box is "no" Enter "2" in Field 14Q6A
    Both the "yes" and "no" boxes are checked Enter "3" in Field 14Q6A
    Neither box is checked Delete Field 14Q6A

3.12.251.16.9  (01-01-2012)
Field 14Q6B - Foreign Country Code

  1. Field 14Q6B is transcribed from the left of Form 1120, Schedule N, line 6b.

  2. Invalid Condition

    • Field 14Q6B is invalid if present and the code is not a valid Foreign Country Code.

  3. Correction Procedures:

    1. If Then
      A foreign country is present on Form 1120, Schedule N, line 6b, or See Document 7475 for a list of the valid two-digit Foreign Country Codes.
      Enter the appropriate code in Field 14Q6B and to the left of line 6b or line 6.
      Unable to determine the Foreign Country Code Delete Field 14Q6B.

3.12.251.16.10  (01-01-2012)
Field 14Q7A - Extraterritorial Income Exclusion

  1. Field 14Q7A is transcribed from the left of Form 1120, Schedule N, line 7a.

  2. Invalid Condition - Field 14Q7A is invalid if it is not all blank or an entry other than "1," "2" or "3" is present.

  3. Correction Procedures:

    1. Check for coding and transcription errors.

    2. Make any necessary corrections.

      If Then
      Form 1120, Schedule N, line 7a box is "yes" Enter "1" in Field 14Q7A
      Form 1120, Schedule N, line 7a box is "no" Enter "2" in Field 14Q7A
      Both the "yes" and "no" boxes are checked Enter "3" in Field 14Q7A
      Neither box is checked Delete Field 14Q7A

3.12.251.16.11  (01-01-2012)
Field 14Q7B - Number of Forms 8873

  1. Field 14Q7B is transcribed from the dotted line area of Form 1120, Schedule N, line 7b.

  2. Invalid Condition - Field 14Q7B is invalid if it is not all blank or an entry other than numeric 001 through 999 is present.

  3. Correction Procedures - Correct any coding and transcription errors.

3.12.251.16.12  (01-01-2012)
Field 14Q7C - Total Extraterritorial Income Exclusion

  1. Field 14Q7C is transcribed from the dotted line area of Form 1120, Schedule N, line 7c, in dollars only. Total Extraterritorial Income Exclusion can be a positive or negative amount.

  2. Invalid Condition - Field 14Q7C is invalid if it is not blank or all numeric.

  3. Correction Procedures - Correct any coding and transcription errors.

3.12.251.17  (01-01-2012)
Sections 15- 18 Data - Form 1120

  1. This section contains instructions for correcting Sections 15- 18 Field Errors.

  2. Computer generated fields are described under the appropriate Error Code(s).

  3. Sections 15- 18 contain data from Form 4136, Computation of Credit for Federal Tax on Fuels. All fields are transcribed in dollars and cents and must be positive.

  4. Form 4136 procedures have been revised. ISRP will now pick up the information by inputting the specific credit reference number (CRN) the taxpayer indicates on his Form 4136.

    Example:

    Taxpayer reports a credit of $4,500.00 on line 3a, and $600.00 on line 5b, Form 4136. Section 15 will show the amounts transcribed from line 3a as 15A01 $4,500.00 with 15C01 as 360 (CRN) and transcribed 15A02 as $600.00 with 15C02 as 355 (CRN). In this scenario only Screen 15 would apply since only two credits were reported.

  5. Screens 15–18 could generate on an account if the taxpayer claimed as many as 43 different credits. Screen 15 reports the first 12 credits transcribed, Screen 16 will report the next twelve, Screen 17 the next 12 and Screen 18 will report the last seven credits. The same applies to the CRN's reported.

3.12.251.17.1  (01-01-2012)
Section 15-18 Field Errors

  1. Correctable Sections 15-18 fields are listed below:

    Field Designator Field Title
    15TG> Total Fuel credits Form 4136 computer generated
    15A01 First Credit Amount Reported
    15C01 First CRN for First Credit amount Reported
    15A02-15A12 Second through twelfth credit amounts reported.
    15C02-15C12 Second through twelfth CRN reported
    16A01–16A12 Thirteenth through twenty-fourth Credit Amounts Reported.
    16C01-16C12 Thirteenth through twenty-fourth CRN Reported
    17A01-17A12 Twenty-fifth through thirty-sixth Credit Amount Reported
    17C01-17C12 Twenty-fifth through thirty -sixth CRN Reported
    18A01-18A07 Thirty-seventh through forty-third Credit Amount Reported
    18C01-18C07 Thirty-seventh through forty-third CRN Reported

  2. Invalid Condition - Sections 15–18 field errors will display if:

    • A money field is not all numeric

    • An entry exceeds the maximum length.

    • A "positive only" field is negative.

    Note:

    Refer to Error Code 122 for Section 15-18 tax period checks. See IRM 3.12.251.24.25

  3. Correction Procedures:

    1. Check for coding and transcription errors.

    2. Make necessary corrections.

    3. If a "positive only" field is negative, delete the field.

  4. Current valid Credit Reference Numbers with their valid tax periods are listed below:

    CRN Valid Tax Periods
    306 200601 and later
    307 200601 thru 201112
    309 200601 and later
    310 200601 and later
    318 199708 and prior
    324 199701 and later
    346 199801 and later
    347 199801 and later
    350 199801 and later
    352 199401 and later
    353 All
    354 All
    355 All
    356 199301 thru 200511
    357 199301 thru 200511
    359 199301 thru 200511
    360 All
    361 199401 and later
    362 199401 and later
    363 199301 thru 200511
    369 199401 and later
    375 199301 thru 200511
    376 199301 thru 200511
    377 199301 and later
    388 200501 thru 201112
    390 200501 thru 201112
    393 200501 and later
    394 200501 and later
    395 200501–200708
    411 200601 and later
    412 200601 and later
    413 200601 and later
    414 200601 and later
    415 200601 and later
    416 200601 and later
    417 200601 and later
    418 200601 and later
    419 200610 and later
    420 200610 and later
    421 200610 and later
    422 200610 and later
    423 200610 and later
    424 200610 and later
    425 200610 and later
    426 200610 thru 201112
    427 200610 thru 201112
    428 200610 thru 201112
    429 200610 thru 201112
    430 200610 thru 201112
    431 200610 thru 201112
    432 200610 thru 201112
    433 200510 and later
    434 200510 thru 200712
    435 200810 and later
    436 200810 thru 201112
    437 200810 thru 201112

  5. For tax periods 2000 and prior, use the conversion chart below:

    If Tax Year is 2000 or prior and CRN is.... Then Convert to CRN
    301 362
    302 356
    303 360
    304 361
    305 353
    307 324
    310 369
    312 359

3.12.251.18  (01-01-2012)
Section 20 Data - Form 1120 - Telephone Excise Tax Refund (TETR)

  1. Section 20 contains information reported on Form 8913, Credit For Federal Telephone Excise Tax Paid. This section is only valid for tax periods ending 200612 through 200711

  2. This section is not required.

  3. All fields in Section 20 are numeric only.

  4. All fields must be transcribed in dollars and cents.

  5. All fields in Section 20 must be positive.

  6. Listed below are all valid fields:

    Field Designator Maximum Length Title Location Form 8913
    20TTR 15 Telephone Excise Tax Refund 15(d)
    20TTI 15 Telephone Excise Tax Credit Interest 15(e)

3.12.251.19  (01-01-2012)
Section 21 Data- Form 1120 - Small Employer Health Insurance Premiums

  1. Section 21 contains information reported on Form 8941, Credit for Small Employer Health Insurance Premiums.

  2. This section is not required.

  3. All fields in Section 21 are numeric only. Fields 2101, 2102, 2113, and 2114 are 4 characters only. All other fields are dollar fields and are transcribed as dollars only.

  4. All fields in Section 21 must be positive.

  5. Listed below are all valid fields:

    Field Designator Maximum Length Title Location Form
    2101 4 Number of Employees Line 1
    2102 4 Number of Full Time Employees Line 2
    2103 15 Average Annual Wages Line 3
    2104 15 Health Insurance Premiums Paid Line 4
    2105 15 Premiums You Would Have Paid Line 5
    2110 15 Premium Subsidies Paid Line 10
    2113 4 Number of Employees With Premiums Paid Line 13
    2114 4 Number of Full Time Employees With Premiums Paid Line 14
    2115 15 Credit for small employer health insurance premiums from partnerships, S corporations, cooperatives, estates, and trusts Line 15
    2116 15 Sum of 12 and 15 Line 16
    2118 15 Cooperatives, Estates, Trusts Credit Line 18

  6. Field Errors will display for this section whenever non-numeric characters are entered into any field.

  7. Check for coding and transcription errors and make necessary corrections.

  8. If correct information is not available, delete the entry

3.12.251.20  (01-01-2012)
Section 22 Data - Form 1120 - New Hire Retention Credit

  1. Section 22 data is transcribed from Form 5884-B, New Hire Retention Credit.

  2. This section is not required.

  3. Field 2210 should be 15 numeric digits, dollars only and positive only.

  4. Field 2211 should be 7 numeric positive digits, not dollar field.

  5. Listed below are all valid fields:

    Field Designator Maximum Length Title Location
    2210 15 Total of Line 9, columns (a) through (c) Line 10
    2211 7 Number of retained workers for whom receiving credit Line 11

  6. Field Errors will display for this section whenever non-numeric characters are entered into any field.

  7. Check for coding errors and transcription errors and make necessary corrections.

  8. If correct information is not available, delete the entry.

3.12.251.21  (01-01-2012)
Section 23 Data - Form 1120

  1. Listed below are the fields contained in Section 23. Data in this section is from Form 3800, Parts I, II, and a portion of Part III.

    Field Designator Maximum Length Title Location
    23001 15 General business credit Part I, Line 1
    23002 15 Passive activity credits Part I, Line 2
    23003 15 Passive activity credits allowed Part I, Line 3
    23004 15 Carryforward of general business credits Part I, Line 4
    23005 15 Carryback of general business credits Part I, Line 5
    2316B 15 For a corporation electing to accelerate the research credit Part II, Line 16b
    23024 15 Passive activity credit allowed Part II, Line 24
    23028 15 Add lines 17b and 26 Part II, Line 28
    23029 15 Subtract line 28 from line 27 Part II, Line 29
    23030 15 Enter the general business credit Part II, Line 30
    23031 15 Enter the total eligible small business credits allowed Part II, Line 31
    23032 15 Passive activity credits Part II, Line 32
    23033 15 Passive activity credits allowed Part II, Line 33
    23034 15 Carryforward of business credits Part II, Line 34
    23035 15 Carryback of business credits Part II, Line 35
    2301A 15 Investment Credit Part III, Line 1a
    2301B 15 Reserved Part III, Line 1b
    2301C 15 Credit for increasing research activities Part III, Line 1c
    2301D 15 Low-Income housing credit Part III, Line 1d
    2301E 15 Disabled access credit Part III, Line 1e

  2. Correction Procedures- correct all misplaced entries, coding errors, and transcription errors.

  3. Verify the credit is valid for the tax period on the return.

3.12.251.21.1  (01-01-2012)
Field 2301E - Disabled Access Credit - (Form 8826)

  1. Description:

    • Field 2301E is transcribed from Part III, Line 1e on Form 3800, General Business Credit.

    • Cannot be more than ≡ ≡ ≡ ≡ ≡ ≡

3.12.251.22  (01-01-2012)
Section 24 Data - Form 1120

  1. Listed below are the fields contained in Section 24. Data in this section is from Form 3800, a portion of Part III:

    Field Designators Maximum Length Title Location
    2401F 15 Renewable electricity production credit Part III, Line 1f
    2401G 15 Indian employment credit Part III, Line 1g
    2401H 15 Orphan drug credit Part III, 1h
    2401I 15 New markets credit Part III, Line 1i
    2401J 15 Credit for small employer pension plan startup costs Part III, Line 1j
    2401K 15 Credit for employer-provided child care facilities and services Part III, Line 1k
    2401L 15 Biodiesel and renewable diesel fuels credit Part III, Line 1l
    2401M 15 Low sulfur diesel fuel production credit Part III, Line 1m
    2401N 15 Distilled spirits credit Part III, Line 1n
    2401O 15 Non-conventional source fuel credit Part III, Line 1o
    2401P 15 Energy efficient home credit Part III, Line 1p
    2401Q 15 Energy efficient appliance credit Part III, Line 1q
    2401R 15 Alternative motor vehicle credit Part III, Line 1r
    2401S 15 Alternative fuel vehicle refueling property credit Part III, Line 1s
    2401T 15 Reserved Part III, Line 1t
    2401U 15 Mine rescue team training credit Part III, Line 1u
    2401V 15 Agricultural chemicals security credit Part III, Line 1v
    2401W 15 Credit for employer differential wage payments Part III, Line 1w

  2. Correction Procedures - correct all misplaced entries, coding errors, and transcription errors.

  3. Verify the credit is valid for the tax period on the return.

3.12.251.22.1  (01-01-2012)
Field 2401J - Credit for Small Employer Pension Plan Startup Costs (Form 8881)

  1. Description:

    • Field 2401J is transcribed from Part III, Line 1j on Form 3800, General Business Credit.

    • The credit is valid from 200201 to present.

    • Cannot be more than ≡ ≡ ≡ ≡ ≡ .

3.12.251.22.2  (01-01-2012)
Field 2401K - Credit for Employer-Provided Child Care Facilities and Services (Form 8882)

  1. Description:

    • Field 2401K is transcribed from Part III, Line 1k on Form 3800.

    • The credit is valid from 200201 to present.

3.12.251.22.3  (01-01-2012)
Field 2401L - Biodiesel and Renewable Diesel Fuels Credit (Form 8864)

  1. Description:

    • Field 2401L is transcribed from Part III, Line 1l on Form 3800.

    • The credit is valid from 200401 to present.

3.12.251.22.4  (01-01-2012)
Field 2401M - Low Sulfur Diesel Fuel Production Credit (Form 8896)

  1. Description:

    • Field 2401M is transcribed from Part III, Line 1m on Form 3800.

    • The credit is valid from 200401 to present.

3.12.251.22.5  (01-01-2012)
Field 2401N - Distilled Spirits Credit (Form 8906)

  1. Description:

    • Field 2401N is transcribed from Part III, Line 1n on Form 3800.

    • The credit is valid from 200508 to present.

3.12.251.22.6  (01-01-2012)
Field 2401O - Non-conventional Source Fuel Credit (Form 8907)

  1. Description:

    • Field 2401O is transcribed from Part III, Line 1o on Form 3800.

    • The credit is valid from 200508 to present.

3.12.251.22.7  (01-01-2012)
Field 2401R - Alternative Motor Vehicle Credit (Form 8910)

  1. Description:

    • Field 2401R is transcribed from Part III, Line 1r on Form 3800.

    • The credit is valid from 200508 to present.

    Note:

    Valid in service dates must be after 2/17/09.

3.12.251.22.8  (01-01-2012)
Field 2401S - Alternative Fuel Vehicle Refueling Property Credit (Form 8911)

  1. Description:

    • Field 2401S is transcribed from Part III, Line 1s on Form 3800.

    • The credit is valid from 200508 to present.

3.12.251.22.9  (01-01-2012)
Field 2401V - Agricultural Chemicals Security Credit (Form 8931)

  1. Description:

    • Field 2401V is transcribed from Part III, Line 1v on Form 3800.

    • The credit is valid from 200805 to present.

    • Cannot be more than ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

3.12.251.22.10  (01-01-2012)
Field 2401W - Credit for Employer Differential Wage Payments (Form 8932)

  1. Description:

    • Field 2401W is transcribed from Part III, Line 1w on Form 3800.

    • The credit is valid from 200901 to present.

3.12.251.23  (01-01-2012)
Section 25 Data - Form 1120

  1. Listed below are the fields contained in Section 25. Data in this section is from Form 3800, a portion of Part III:

    Field Designators Maximum Length Title Location
    2501X 15 Carbon dioxide sequestration credit Part III, Line 1x
    2501Y 15 Qualified plug-in electric drive motor vehicle credit Part III, Line 1y
    2501Z 15 Qualified plug-in electric vehicle credit Part III, Line 1z
    251AA 15 New hire retention credit Part III, Line 1aa

    Note:

    Valid March 19, 2010 through December 31, 2010.
    251BB 15 General credits from an electing large partnership Part III, Line 1bb
    251ZZ 15 Other Part III, Line 1zz
    2503 15 Amount for form 8844 Part III, Line 3
    2504A 15 Investment credit Part III, Line 4a
    2504B 15 Work opportunity credit Part III, Line 4b
    2504C 15 Alcohol and cellulosic biofuel fuels credit Part III, Line 4c
    2504D 15 Low-income housing credit Part III, Line 4d
    2504E 15 Renewable electricity, refined coal, and Indian coal production credit Part III, Line 4e
    2504F 15 Credit for employer social security and Medicare taxes paid on certain employee tips Part III, Line 4f
    2504G 15 Qualified railroad track maintenance credit Part III, Line 4g
    2504H 15 Credit for small employer health insurance premiums Part III, Line 4h
    2504I 15 Reserved Part III, Line 4i
    2504J 15 Reserved Part III, Line 4j
    2504Z 15 Other Part III, Line 4z
    25SBC 15 Eligible small business credits Notated at bottom left margin

  2. Correction Procedures - correct all misplaced entries, coding errors, and transcription errors.

  3. Verify the credit is valid for the tax period on the return.

3.12.251.23.1  (01-01-2012)
Field 2501X - Carbon Dioxide Sequestration Credit (Form 8933)

  1. Description:

    • Field 2501X is transcribed from Part III, Line 1x on Form 3800.

    • The credit is valid from 200810 to present.

3.12.251.23.2  (01-01-2012)
Field 2501Y - Qualified Plug-in Electric Drive Motor Vehicle Credit (Form 8936)

  1. Description:

    • Field 2501Y is transcribed from Part III, Line 1y on Form 3800.

    • The credit is valid from 200901 to present.

    Note:

    Valid in service dates must be after 1/01/2009 and vehicle year 2009.

3.12.251.23.3  (01-01-2012)
Field 2501Z - Qualified Plug-in Electric Vehicle Credit (Form 8834, Part I only)

  1. Description:

    • Field 2501Z is transcribed from Part III, Line 1z on Form 3800, General Business Credit.

    • Must have valid in service date after 2/17/2009 and vehicle year 2009.

3.12.251.23.4  (01-01-2012)
Field 2504G - Qualified Railroad Track Maintenance Credit (Form 8900)

  1. Description:

    • Field 2504G is transcribed from Part III, Line 4g of Form 3800.

    • The credit is valid from 200501 to present.

3.12.251.24  (01-01-2012)
Math/Consistency Errors—Priority IV

  1. A priority IV error will display whenever the contents of one field is inconsistent with the contents of another field, or when a math computation is incorrect. These errors will be assigned a specific Error Code and will display in ascending Error Code order.

  2. The screen display will show the Error Code assigned and all the fields needed to make the necessary correction.

  3. For some math error codes, a field labeled "NC" will display for the entry of a Taxpayer Notice Code (TPNC). Multiple taxpayer notice codes may be entered when multiple XX(s) are shown. Previously assigned TPNC(s) will display on the right hand side of line 3 of the screen.

  4. A field labeled "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. All coding and transcription errors must be corrected, and all IRM procedures must be applied BEFORE entering a "C" in the Clear Code field. All errors must be resolved, as applicable, by:

    1. Eliminating the error;

    2. Entering a Clear Code;

    3. Entering a Taxpayer Notice Code; or

    4. Suspending the document with the appropriate Action Code.

3.12.251.24.1  (01-01-2012)
Documents with Overfilled Money Fields

  1. If the money amount on a return exceeds the maximum field length allowable, enter the maximum amount of tax in Field 07GVT. Prepare Form 3465 to have the remainder assessed by Accounts Management.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more between taxpayer tax and computer tax, correspond for an explanation or follow local Submission Processing Campus procedures. If no reply, send TPNC 40.

3.12.251.24.2  (01-01-2012)
♦Error Code 001 - Tax Year - Invalid Entry♦

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

    Field Designator Field Title Length
    01TXP Tax Period 6
    01CCC Computer Condition Code 10
    01RCD Received Date 8
    01RDD Return Due Date Computer Generated 8

  2. Invalid Condition – Error Code 001 will generate when any of the following conditions are present:

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

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

    • "G" Coded and Non "G" Coded Returns-The processing date is less than two years 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 the following returns to Statute Control for clearance. Instead, enter "W" in Field 01CCC and on the return and continue processing:

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

      • any return with a transaction code(TC) 59X

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

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

      If Then
      Field 01RCD is blank

      1. Enter the Received Date in Field 01RCD. Use the earliest date if multiple Received Dates are present.

      2. See IRM 3.12.251.4.5 to determine the Received Date.

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

      Note:

      Do not send the return to Statute Control.

      The return is not stamped by Statute Control within the last ninety days 1. SSPND "310."
      2. Prepare Form 4227 to route to Statute Control.

  4. Suspense Corrections:

    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."

3.12.251.24.3  (01-01-2012)
♦Error Code 002 - Name Control Mismatch♦

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

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

  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 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. Refer to all the following research instructions in this error code before taking any action.

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

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

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

      If Then
      The Name Control on INOLES matches the Name on the return or attachment, 1. Ensure that the entity information matches the return.
      2. Overlay Field 01EIN with the new EIN from NAMEB/NAMEE. When the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return. Ensure that the entity information matches 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, 1. SSPND "320" to Entity Control.
      2. Prepare Form 4227 with the notation "MULTIPLE EINS."
      INOLES indicates a "Merge To" (MT) EIN, Research the "MT" EIN on INOLES.
      The "MT" EIN matches the entity on the return or attachments, Enter the "MT" EIN in Field 01EIN

      Note:

      Do not send Letter 3875C on MT EIN cases.
      The "MT" EIN does not match the entity on the return or attachments, SSPND "320" to Entity Control.

    8. If the Name on the return or attachment does not agree with the Name Control on INOLES or there is an indication of a name change on Form 1120, research ENMOD for a new name.

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

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

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

  4. Suspense Corrections:

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

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

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

    If Then
    The payment posted to the wrong EIN, 1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module.
    2. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE."
    3. Write, "FORM 3465 PREPARED" on the return, to the left of the Entity section.
    4. Enter CCC "X" in Field 01CCC.
    The payment posted correctly, 1. Enter the 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.

3.12.251.24.4  (01-01-2012)
♦Error Code 003 - Check Digit Invalid♦

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

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

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

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

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

  3. Correction Procedures:

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

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

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

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

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

      Note:

      Do not send Letter 3875C 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.
      Unable to locate an EIN or more than one EIN is located 1. SSPND "320" to Entity Control.
      2. Prepare Form 4227 with the notation "NO RECORD OF EIN."

  4. Suspense Corrections:

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

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

3.12.251.24.5  (01-01-2012)
♦Error Code 004 - Name Control/EIN Validation♦

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

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

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

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

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

    Note:

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

  3. Correction Procedures:

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

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

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

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

    5. Refer to all the following research instructions in this error code before taking any action.

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

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

    7. 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, 1. SSPND "320" to Entity Control.
      2. Prepare Form 4227 with the notation "MULTIPLE EINS."
      INOLES indicates a "Merge To" (MT) EIN, Research the "MT" EIN on INOLES.
      The "MT" EIN matches the entity on the return or attachments, Enter the "MT" EIN in Field 01EIN.
      The "MT" EIN does not match the entity on the return or attachments, SSPND "320" to Entity Control.

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

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

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

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

  4. Suspense Corrections:

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

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

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

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

3.12.251.24.6  (01-01-2012)
♦Error Code 007 - Received Date is Earlier Than Tax Year♦

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

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

  2. Invalid Condition – Error Code 007 will generate when the Received Date is earlier than the first day of the tax period/year.

  3. Correction Procedures:

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

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

      If And Then
      The Received Date is invalid and it appears that the incorrect year was used (i.e. 20100115 instead of 20110115), and other information (Julian Date, postmark date, and/or signature date) indicates that the Received Date should be the current year   Change the Received Date year to the current year and enter in Field 01RCD.
      The return is an early filed "Final" return   1. Change the tax period to agree with the month before the Received Date and enter in Field 01TXP.
      2. Enter "F" in Field 01CCC.
      The return is not an early filed "Final" return The tax period ending is less than four months after the Received Date 1. SSPND "480."
      2. Prepare Form 4227 with the notation, "EARLY FILED."
      The return is not an early filed "Final" return The tax period ending is more than four months after the Received Date 1. Initiate correspondence for clarification of tax period.
      2. SSPND "211."
      The return is not an early filed "Final" return The month of the Received Date is prior to the Tax Period ending Change the month of the Received Date to equal the month of the Tax Period

  4. Suspense Corrections:

    If Then
    The taxpayer replies that the return is a "Final" 1. Change the Tax Period to agree with the month before the Received Date and enter in Field 01TXP.
    2. Enter "F" in Field 01CCC.
    The taxpayer replies that the return is not a "Final" return SSPND "480" until the end of the tax period provided by the taxpayer.
    The taxpayer fails to reply or the reply is not adequate 1. Enter "3" in Field 01CCC.
    2. SSPND "480" until the end of the tax period indicated on the return.

3.12.251.24.7  (01-01-2012)
♦Error Code 010 - Amended Return "G" Coded♦

  1. Fields Displayed - Error Code 010 will display as follows:

    Field Designator Field Title Length
    01CCC Computer Condition Code 10
    S02DP Section 02 Present  
    S03DP Section 03 Present  
    S04DP Section 04 Present  
    S05DP Section 05 Present  
    S06DP Section 06 Present  
    S07DP Section 07 Present  
    S08DP Section 08 Present  
    S09DP Section 09 Present  
    S11DP Section 11 Present  
    S12DP Section 12 Present  
    S14DP Section 14 Present  
    S15DP Section 15 Present  
    S16DP Section 16 Present  
    S20DP Section 20 Present  
    S21DP Section 21 Present  
    S22DP Section 22 Present  
    S23DP Section 23 Present  
    S24DP Section 24 Present  
    S25DP Section 25 Present  

  2. Invalid Condition – Error Code 010 will generate when Computer Condition Code "G" is present and fields other than Fields 01CCC, 01NC, 01EIN, 01TXP, O1CRD or 01RCDcontain entries.

  3. Correction Procedures:

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

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

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

      If Then
      Return indicates amended, revised, supplemental, corrected or superseding, Research the applicable Command Code(s) e.g. BRTVU, BMFOL, SUMRY and/or TXMOD 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, 1. SSPND 640
      2. Route to Rejects.
      A return is not posted for the tax period and the return is an amended return, 1. Continue processing as an amended return.
      A return is not posted for the period and the return is not amended, or G coded in error, 1. Enter all necessary data in Sections 01 through 25.
      2. Ensure that the Section 01 fields are correct.
      2. Delete the "G" code in Field 01CCC.

      Note:

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

3.12.251.24.8  (01-01-2012)
Error Code 011 - Remittance is Present and No Data in Section 07

  1. Fields Displayed - Error Code 011 will display as follows:

    Field Designator Field Title
    RMIT> Remittance
    01RCD Received Date
    01CCC Computer Condition Code
    Section 07 NP If Section 07 is not present

  2. Invalid Condition - Error Code 011 will generate when a remittance amount is present and there is no data in Section 07 and Computer Condition Code "G" is not present.

  3. Correction Procedures:

    1. Compare the displayed fields with the return.

    If Then
    Data is present on the return for Section 07 fields Use CC GTSEC 07 and enter the appropriate data in those fields on the screen.
    The record is to be "G" Coded Section 07 is not necessary. Enter the "G" code in Field 01CCC. Verify that the Received Date is present and enter it in Field 01RCD
    There is no money amount in the RMIT> Field, and a RPS/ISRP indicator is present Use GTSEC 07 and enter $.01 in Field 07TTX. Continue processing.

3.12.251.24.9  (01-01-2012)
♦Error Code 014 - Missing Address Entries♦

  1. Fields Displayed - Error Code 014 will display fields:

    Field Designator Field Title Length
    02CON "In-Care-of" Name 35
    02FAD Foreign Address 35
    02ADD Street Address 35
    02CTY City 22
    02ST State 2
    02ZIP Zip Code 12

  2. Invalid Condition - Error Code 014 will generate when any of the following conditions are present:

    • If the street address is present, Field 02CTY and Field 02ST must be present, unless a Major City Code is used.

    • If a Major City Code is used, Field 02ADD must be present.

    • A City must be present. If the city is not in the Major City format, Field 02ST must be present. Field 02ADD can be blank.

    • A Major City Code is used and Field 02ST is present.

  3. Correction Procedures:

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

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

    3. Research using any one of the following for valid address information: Document 7475, or INOLE, or NAMEB/NAMEE, ENMOD.

    If And Then
    A Major City Code is present A street address is not available 1. Enter the City name (spelled out, not in Major City format) in Field 02CTY.
    2. Enter the State Code in Field 02ST.
    The Major City Code is correct The state is present Delete Field 02ST.
    The ZIP Code or Address cannot be corrected from the information on the return, attachments or from research   DLSEC 02.

3.12.251.24.10  (01-01-2012)
Error Code 015 - Foreign Address/State

  1. Error Code 015 will display as follow:

    Field Designator Field Title Length
    02FAD Foreign Address 35
    02ADD Address 35
    02CTY City 22
    02ST State 2
    02ZIP Zip Code 12

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

    1. Field 02ST has an entry other than "." (period/space) when Field 02FAD is present.

    2. Field 02ZIP has an entry when Field 02FAD 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 02FAD Field 02ST must contain a "." (period/space)
      Delete any entry in Field 02ZIP.
      A foreign address is not present in Field 02FAD Check return for foreign address
      Foreign address is present on the return

      1. Enter the foreign address in Field 02FAD

        Note:

        If additional space is required, continue entering the address in Field 02ADD

      2. Field 02CTY must contain the appropriate foreign country code. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries).

        Exception:

        Use the country code based on the province in Field 02FAD if the foreign address is from Canada and the address contains a province name or abbreviation.

      3. Field 02ST must contain . (period/space).

      4. Delete any entry in Field 02ZIP.

      .
      A foreign address is not present on the return,

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

      2. SSPND 610.

      3. Renumber return with domestic DLN.

3.12.251.24.11  (01-01-2012)
♦Error Code 016 - ZIP Code/State Mismatch♦

  1. Fields Displayed - Error Code 016 will display fields:

    Field Designator Field Title Length
    02CON "In-Care-of" Name 35
    02FAD Foreign Address 35
    02ADD Street Address 35
    02CTY City 22
    02ST State 2
    02ZIP Zip Code 12

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

    3. Research Document 7475, or INOLES, NAMEB/NAMEE, ENMOD for valid Zip Code information.

      If And Then
      Unable to determine a valid ZIP Code from the return or attachments, A valid Zip Code is found through IDRS research, Enter the valid ZIP Code in Field 02ZIP.
      Only the first three digits of the ZIP Code can be determined,   Enter "01" in the (4th) and (5th) position.
      A ZIP Code cannot be determined   Enter the 3 digits followed by "01" of the first ZIP Code listed for the applicable state found in Document 7475. (e.g., 99501 for Alaska).
      The address is in a major city, A Major City Code can be determined, Enter Major City Code in Field 02CTY.
      The address is in a major city A Major City Code cannot be determined, 1. Enter the name of the city in Field 02CTY.
      2. Enter the State Code in Field 02ST.
      The address is not in a major city,   1. Enter the appropriate state abbreviation in Field 02ST.
      2. Enter ZIP Code in Field 02ZIP.

    4. APO/DPO/FPO Addresses – An Army Post Office (APO), Diplomatic Post Office (DPO) or Fleet Post Office (FPO) is not a foreign address. The U.S. Postal Service established new address requirements for APO/DPO/FPO addresses. If an address appears in the old APO/DPO/FPO format, convert to the new state code abbreviation based on the ZIP Code. For example, APO New York, NY 091XX would be converted to APO AE 091XX. Refer to the APO/DPO/FPO conversion chart below:

      ZIP Code State Code
      340 AA
      090-098 AE
      962-966 AP

3.12.251.24.12  (01-01-2012)
Error Code 026 - Tax Period Mismatch

  1. Fields Displayed - Error Code 026 will display fields:

    Field Designator Field Title
    CL Clear Code
    01EIN Employer Identification Number
    01TXP Tax Period
    >>>> Tax Period Underprint
    01CCC Computer Condition Code
    S03NP Section 03 Not Present
    03ADC Audit Code

    Note:

    The literal "Section 03 not Present" will display if there are no entries in Section 03.

  2. Invalid Condition: Error Code 026 will generate when:

    • The tax period does not agree with the Entity Index File and

    • CCC "F" or "Y" is not present.

  3. Correction Procedures:

    1. Before taking any additional research steps to resolve Error Code 026, drop the cursor to the bottom of the screen and transmit. This will ensure that any prior changes to the tax period have posted to the NAP. If Error Code 026 reappears, continue with the remainder of the correction procedures.

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

  4. Acceptable Reasons for filing a short period return include, but are not limited to the following:

    1. National Office Grant Letter attached.

    2. Statement the corporation is changing the tax period under Section 1.442.1 (b) or (c)

    3. Revenue Procedure 82–25 (Special Rule cases)

    4. Statement the corporation is coming out of consolidation or (Parent) is no longer a consolidated group.

    5. Statement changing period "to get in step with" Parent or due to a new affiliation with consolidated group.

    6. Filing under Section 338 Election or attached Form 8023 and tax period begins after the acquisition date.

    7. Short period due to changing to calendar year. "Filed under Section 806 of the Tax Reform Act of 1986" is noted at the top of page 1.

    8. Statement that change in accounting period has been granted by the IRS.

    9. Approved Form 1128 attached.

    10. Notation on Form 1128 or Form 5471 indicates Filed under Rev. Proc. 2006-45 or 2006-46.

    11. Election Change in taxable year under Section 898 (c) (2)

    12. Section 444 Election Terminated.

    13. Section 1398 Election.

    14. Second Short Year after Section 1398 Election.

  5. Entity Transaction Codes: Following is a list of common transaction codes (TC) that you will need to be aware of when working EC 026.

    Transaction Code Field Title
    052 Reversal of TC 053, 054 or 055
    053 Form 1128 processed to accept change of accounting period
    054 Form 1128 processed and accepted based on Rev. Proc 87–32
    055 Form 8716 was filed and the fiscal period was accepted
    057 Computer generated when calendar year return posts and terminates Section 444 election
    090 Small Business Election
    091 Terminates Small Business Election
    093 Application (Form 2553) for Small Business Election received
    094 Sub-Chapter S election denied
    095 Sub-Chapter S election pending
    096 Sub-Chapter S election terminated

  6. Caution:

    If account indicates there are prepaid credits and/or extensions and the return is for a short period, SSPND 351 and attach Form 4227 to have the credits and/or extensions moved to the correct period.

3.12.251.24.13  (01-01-2012)
Error Code 030 - Penalty and Interest Code Check

  1. Fields Displayed - Error Code 030 will display fields:

    Field Designator Field Title
    01TXP Tax Period
    01RCD Received Date
    03PIC Penalty and Interest Code

  2. Invalid Condition: Error Code 030 generates when:

    1. The Penalty and Interest Code is "1" and the Received Date is on or before the return due date (2 months and 15 days), ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Correction Procedures:

    1. Compare the displayed fields with the return

      If Then
      The code is correct, for example, the taxpayer is paying penalty or interest ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Enter the correct Received Date.
      The Received Date is correct and after the due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Delete code "1" from Field 03PIC.
      There is more than one date present on the return Use the earliest date.
      The correct Received Date is equal to or earlier than the due date Delete Code "1" from Field 03PIC

  4. If the Penalty and Interest Code is present and the Received Date is shown, determine and enter this date in the priority listed:

    1. IRS date stamp.

    2. Legible US or Foreign Country post mark date. Accept postmark date stamped in margin by Receipt and Control (R&C) function. See IRM 3.10.72, Sorting and Numbering, for clarification if necessary. Acceptable designated delivery service as indicated in IRM 3.10.72.

    3. Revenue Officer's signature date.

    4. Signature date of TP (unless other information indicates signature date is not valid). Do not use signature date for prior year returns.

    5. Document Locator Number (DLN) minus ten days (Julian Date).

    6. Current date minus ten days.

  5. CCC "R," if present, will override the Penalty and Interest Code "1" where a delinquency penalty is concerned.

3.12.251.24.14  (01-01-2012)
Error Code 034 - Correspondence Received Date Check

  1. Fields Displayed - Error Code 034 will display fields:

    Field Designator Field Title
    01TXP Tax Period
    01RCD Received Date
    01CRD Correspondence Received Date
    01RDD> Return Due Date

  2. Invalid Conditions: Error Code 034 generates when:

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

    2. The Correspondence Received Date is later than the processing date.

      Note:

      The Correspondence Received Date is an ERS input field only.

  3. Correction Procedures:

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

  4. The Received Date will either be stamped or edited on the return. If the Received Date is missing or illegible, determine the date in the order listed below:

    1. U.S.or Foreign Country Postmark date on envelope or postmark established by an acceptable designated delivery service. If further information is needed please see IRM 3.10.72, Sorting and Numbering.

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

    3. Revenue Officer's signature date.

    4. TP signature date (unless other information indicates it is not valid). Never use signature dates on prior year returns.

    5. DLN Julian date minus ten days

    6. Current date minus ten days.

  5. A Correspondence Received Date (CRD) will be determined from the date the reply was received in the Submission Processing Campus. Refer to the return for the Correspondence Received Date. This can be verified by checking the stamped Received Date on the correspondence attached to the return.

  6. If a reply to correspondence is received after an EIN has been assigned by Entity enter the date stamped on the reply in Field 01CRD.

  7. If the Correspondence Received Date is present and earlier than the Return Due Date, or later than the processing date, delete the Correspondence Received Date from Field 01CRD.

  8. If more than one Received Date is present use the earliest date

  9. If "No Reply" enter CCC "3" in Field 01CCC to bypass the validity check.

3.12.251.24.15  (01-01-2012)
Error Code 065 - Credit Elect Amount and CCC "F" are Present

  1. Fields Displayed - Error Code 065 will display fields:

    Field Designator Field Title
    01TXP Tax Period
    01CCC Computer Condition Code
    07CRE Credit Elect Amount

  2. Invalid Condition: Error Code 065 generates when:

    1. Return has amount in Credit Elect Field and Computer Condition Code "F" is present.

  3. Correction Procedures:

    1. Check return for coding or transcription errors.

    2. Transcription is from line 36, center, Form 1120.

    3. If Computer Condition Code "F" is valid, check the return for misplaced entries.

    4. Delete the entry in Field 07CRE when the return is truly "Final"

    5. Delete Computer Condition Code "F" in Field 01CCC if it is determined that the return is not a "Final Return. "

3.12.251.24.16  (01-01-2012)
Error Code 070 - CCC "9" is Present

  1. Fields Displayed - Error Code 070 will display fields:

    Field Designator Field Title
    CL Clear Code
    01CCC Computer Condition Code
    08RLI Recaptured Low Income Housing Credit
    Section 08 Not Present
    23OID Low Income Housing Credit
    Section 23 Not Present

  2. Invalid Condition: Error Code 070 generates when:

    1. The Computer Condition Code field contains a "9" and Low Income Housing Credit and/or Recaptured Low Income Housing Credit is/are not present.

  3. Correction Procedures:

    1. Check for coding and transcription errors.

    2. Make necessary corrections following instructions below:

      If ... But Then ...
      CCC 9 is present, Low Income Housing Credit, Form 8586, is not present Check for an entry on line 1d, Form 3800 and enter amount in Field 08LIH
        Form 3800 is not attached Check for Form 8586 and if found enter amount on line 7 in Field 08LIH
        Recaptured Low Income Housing Credit, Form 8611, is not present Enter amount reported on line 8, Schedule J (if box is checked For Form 8611) in Field 08RLI

3.12.251.24.17  (01-01-2012)
Error Code 072 - Check Fields 08LIH and 08RLI against Field 01CCC

  1. Fields Displayed - Error Code 072 will display fields:

    Field Designator Field Title
    CL Clear Code
    01CCC Computer Condition Code
    08RLI Recaptured Low Income Housing Credit
    23OID Low Income Housing Credit Form 8586
       

  2. Invalid Condition: Error Code 072 generates when:

    1. Low Income Housing Credit, Form 8586, and/or Recaptured Low Income Housing Credit Form 8611 , is/are present and Computer Condition Code "9" is not present.

  3. Correction Procedures:

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

    2. If a correct entry is present in Field 08LIH (see instructions for Error Code 070 to determine correct entry), check Form 8586 to determine on which lines credits are being claimed.

      If ... Then ...
      Form 8586 has an entry on line 4 Enter Computer Condition Code "9" in Field 01CCC
      Form 8586 has entries only on lines 5-17 Enter a" C" in the Clear Code Field
      Form 8611 is present and there is an entry for Field 08RLI Enter a "9" in Field 01CCC

3.12.251.24.18  (01-01-2012)
Error Code 073 - CCC "3" is Present with Field 01CRD

  1. Fields Displayed - Error Code 073 will display fields:

    Field Designator Field Title
    01CCC Computer Condition Code
    01CRD Correspondence Received Date

  2. Invalid Condition: Error Code 073 generates when:

    1. This error condition will generate if Field 01CCC is 3 and a date has been entered in Field 01CRD.

  3. Correction Procedures:

    1. Review the return and attachments for IRS Correspondence.

    2. If IRS correspondence is attached, determine if a reply has been received from the taxpayer.

    3. If so, circle the CCC "3" edited on the return. Delete CCC "3"

    4. If no reply is attached circle the Correspondence Received Date entered on the return and delete entry in Field 01CRD.

      Note:

      If a no reply is being processed after an EIN has been assigned by Entity delete Field 01CRD and enter CCC "3" .

3.12.251.24.19  (01-01-2012)
♦Error Code 074–TETR Inconsistent With Tax Year♦

  1. General Information -

    1. For tax returns filed with tax period ending 200612 through 200711, a refund for the federal telephone excise tax paid on long-distance service may be claimed.

    2. The credit claimed is for the tax paid on service that was billed after February 28, 2003 and before August 1, 2006.

    3. Corporations claiming this credit must complete and submit Form 8913, Credit for Federal Excise tax Paid, with their tax return.

  2. Fields Displayed - Error Code 074 will display as follows:

    Field Designator Field Title
    CL Clear Code
    01TXP Tax Period
    07FTE Telephone Excise Tax Refund
    07TC> Total Telephone Excise Tax Refund Computer Generated
    07TRV TETR Credit Verified
    20TTR Telephone Excise Tax Refund
    20TTI Telephone Excise Tax Credit Interest

  3. Invalid Condition - Error Code 074 will generate when any of the following conditions is present:

    • Tax period is before 200612 or after 200711.

    • There are entries in Fields 20TTR and 20TTI and there is no entry in Field 07FTE

    • Field 20TTI is greater than Field 07FTE and the total claimed is ≡ ≡ ≡ ≡ ≡ ≡ greater.

    • The transcribed amount for telephone excise tax refund amount (on return) differs from the computer amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  4. Correction Procedures: C&E will no longer edit the TETR amount next to line 32g for Form 1120, line 23g for Form 1120-H, line 5i for Form 1120-F, line 29g for Form 1120-C, line 24g for Form 1120-REIT and line 28h for Form 1120-RIC. This will allow all TETR claims filed on original returns to fall out to ERS. Follow the directions below to resolve EC 074 when it generates on any form listed.

    1. Change all TETR fields to zero on the screen display and remove AC 420 if applicable.

    2. Detach Form 8913 and make a copy of the signature page from the return. Staple the copy to the back of the original Form 8913 and route to Accounts Management.

    3. Send TPNC 90 to the taxpayer with the following literal: "Due to processing constraints your Credit for Federal Telephone Excise Tax Paid could not be processed with your tax return. Your claim for this credit has been forwarded to another area to be processed" .

3.12.251.24.20  (01-01-2012)
Error Code 106 - Check Period for Tax Credit

  1. Fields Displayed - Error Code 106 will display fields:

    Field Designator Field Title
    CL Clear Code
    01TXP Tax Period
    2503 Empowerment Zone Credit
    03EZI Empowerment Zone Credit Indicator
    2401G Indian Employment Credit, Form 8845
    2504F Credit for Employer Social Security/Medicare Taxes Paid on Certain Employees Tips, Form 8846
    08CDC Credit for Contributions to selected Community Development Corps, Form 8847
    08WTW Welfare to Work
    08QZA Qualified Zone Academy Bond Tax Credit
    2401J Small Employer Pension Plan Credit
    2401K Employer Provided Child Care Credit
    08NYL New York Liberty Zone Credit
    Section 03 NP Section 03 not present
    Section 08 NP Section 08 not present
    2401I New Markets Tax Credit
    2401L Biodiesel Fuels Credit
    2401M Low Sulfur Diesel Fuel Production Credit
    2504G Qualified Railroad Track Maintenance Credit
    2401N Distilled Spirits Credit
    2401O Nonconventional Fuel Source
    2401P Energy Efficient Home Credit
    2401Q Energy Efficient Appliance Credit
    2401S Alternative Fuel Vehicle Credit
    2401R Alternate Vehicle Fuel Credit
    08CEB Clean Renewable Energy Bond Credit
    08ERC Employee Retention Credit
    Section 24 NP Section 24 Not Present
    Section 25NP Section 25 Not Present

  2. Invalid Conditions: Error Code 106 generates when:

    1. Tax Period is prior to 199801 and Welfare to Work Tax Credit is present.

    2. Tax Period is prior to 199901 and Qualified Zone Academy Bond Tax Credit is present.

    3. Tax Period is prior to 200001 and New Markets Tax Credit is present.

    4. Tax Period is prior to 200001 and Small Employer Pension Plan Credit is present.

    5. Tax Period is prior to 200001 and Employer Provided Child Care Credit is present.

    6. Tax Period is prior to 200201 or subsequent to 200511 and New York Liberty Zone Credit is present.

    7. Tax Period is prior to 200401 and Field 08BFC, Biodiesel Fuels Credit, is present.

    8. Tax Period is prior to 200401 and Field 08LSP, Low Sulfur Diesel Fuel Production Credit, is present.

    9. Tax Period is prior to 200501 and Field 08RTM, Qualified Railroad Track Maintenance Credit or Field 08CEB, Clean Renewable Energy Bond Credit is present.

    10. Tax Period is prior to 200508 and Field 08ERC, Hurricane Katrina Employee Retention Credit, is present.

    11. Tax Period is prior to 200510 and Field 08DSC Distilled Spirits Credit is present.

    12. Tax period is prior to 200601 and Fields 08NSF, 08EEH, 08EEA, 08AMV and/or 08AFV are present.

    13. Tax period is prior to 200804 and Field 07ARC is present.

  3. Correction Procedures:

    1. Refer to the return for the correct tax Period and to determine if the entries in the Fields indicated are valid or misplaced.

      If Then
      The tax period is incorrect, Make the necessary changes.
      The tax period is prior to 199801 and Welfare To Work Credit (08WTW) is present, Delete the Welfare To Work Credit.
      The tax period is prior to 199901 and Qualified Zone Academy Bond Tax Credit (08QZA) is present, Delete the Qualified Zone Academy Bond Tax Credit.
      The tax period is prior to 200001 and New Markets Tax Credit (08NMC) is present, Delete the New Markets Tax Credit.
      The tax period is prior to 200001 and Small Employer Pension Plan Credit (08SEP) is present, Delete the Small Employer Pension Plan Credit.
      The tax period is prior to 200001 and Employer Provided Child Care Credit (08CEP) is present, Delete the Employer Provided Child Care Credit.
      The tax period is prior to 200501 and Qualified Railroad Track Maintenance Credit (08RTM) is present Delete the Qualified Railroad Track Maintenance Credit.
      The tax period is prior to 200201 or subsequent to 200511 and New York Liberty Zone Credit (08NYL) is present,

      Note:

      Carryover credits for 200512 and later must be reported on Form 8835.

      		 Delete the New York Liberty Zone Credit.
      The tax period is prior to 200510 and Distilled Spirits credit is present (08DSC) Delete the Distilled Spirits Credit
      The tax period is prior to 200601 and Nonconventional Source Fuel Credit is present (08NSF) Delete the Nonconventional Source Fuel Credit
      The tax period is prior to 200601 and Energy Efficient Home credit is present (08EEH) Delete the Energy Efficient Home credit
      The tax period is prior to 200601 and Energy Efficient Appliance Credit is present (08EEA) Delete the Energy Efficient Appliance credit
      The tax period is prior to 200601 and Alternative Motor Vehicle credit is present (08AMV) Delete the Alternative Motor Vehicle credit
      The tax period is prior to 200601 and Alternative Fuel Vehicle credit is present (08AFV) Delete the Alternative Fuel Vehicle credit
      The tax period is prior to 200501 and Clean Renewable Energy Bond Credit is claimed (08CEB) Delete the Clean Renewable Energy Bond Credit.
      The tax period is prior to 200804 and Accelerated Refundable Research Credit is claimed Delete the Accelerated Refundable Research Credit

    2. If Fields 08BFC through 08ERC are present for an invalid tax period, delete the appropriate Section 08 field.

    3. If a credit is deleted, GTSEC 03 and delete the Missing Schedule Code (03MIC) if applicable.

3.12.251.24.21  (01-01-2012)
Error Code 108 -

  1. Fields Displayed-Error Code 108 will display fields:

    Field Designator Field Title
    CL Clear Code
    01TXP Tax Period
    2401H Orphan Drug Credit, Form 8820
    08ESC Employee Stock Ownership, Form 8007 (198412-198711 only)

  2. Invalid Conditions: Error Code 108 generates when:

  3. Correction Procedures:

3.12.251.24.22  (01-01-2012)
Error Code 114 - Check Section 04 Amounts against Field 03CGC

  1. Fields Displayed - Error Code 114 will display fields:

    Field Designator Field Title
    03CGC Control Group/Personal Service Code
    04TB1 First Taxable Income Bracket Amount
    04TB2 Second Taxable Income Bracket Amount
    04TB3 Third Taxable Income Bracket Amount
    04TB4 Fourth Taxable Income Bracket Amount
    04TB5 Fifth Taxable Income Bracket Amount
    04TB6 Sixth Taxable Income Bracket Amount
    04TB7 Seventh Taxable Income Bracket Amount
    04AT1 Control Group Additional 5% Amount
    04AT2 Control Group Additional 3% Amount

    Note:

    The literal "Section 03 not present" will display if no entries are in section 03.

  2. Invalid Conditions: Error Code 114 generates when:

    1. Taxable Income Bracket amounts or Controlled Group Additional Tax amount(s) is significant and Control Group/Personal Service Code is other than "1" . IRM 3.12.251.7.3 if the Control Group Code is "4"

  3. Correction Procedures:

    1. Check all displayed fields on the return for coding and/or transcription errors and correct accordingly.

    2. If Field 03CGC is other than "1" and there are significant entries in the Taxable Brackets, check for Schedule O, an apportionment plan or schedule to verify the entries. If they are valid entries, enter a "1" in Field 03CGC. If they are not valid entries, delete them.

    3. Enter Code "2" whether or not the box is checked and the taxpayer has computed the tax at a flat rate of 35%.

    4. If the box on line 1 and the box on line 2, Schedule J are both checked and you are unable to determine the correct code based on (1), or (2) above, enter Code "2" and delete any Taxable Income Bracket Amounts and Control Group Additional Amounts.A controlled group does not have to use the bracket amounts. Check for an apportionment plan.

      Note:

      A Personal Service Corporation is a corporation whose principle activity is the performance of personal services that are substantially performed by employee-owners in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting.

3.12.251.24.23  (01-01-2012)
Error Code 116 - Check Taxable Income Bracket Amounts

  1. Fields Displayed - Error Code 116 will display fields:

    Field Designator Field Title
    01TXP Tax Period
    04TB1 First Taxable Income Bracket Amount
    04TB2 Second Taxable Income Bracket Amount
    04TB3 Third Taxable Income Bracket Amount
    04TB4 Fourth Taxable Income Bracket Amount

  2. Invalid Conditions: Error Code 116 generates when:

    1. The First, Second, Third, or Fourth Taxable Income Bracket Amount is not within the valid range of zero to $25,000.00.

    2. The tax period is later than 198805 and any or all of the displayed Taxable Income Bracket Amounts are significant.

  3. Correction Procedures:

    1. If the amount in any of the Fields 04TB1 through 04TB4 is greater than $25,000, reduce to $25,000.

    2. Refer to the return for the correct tax period and make any corrections, if applicable.

    3. If the correct tax period is after 198805, delete any amounts in Fields 04TB1–04TB4.

    4. If any of the amounts are less than zero, delete the amounts.


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