3.12.263  Estate and Gift Tax Returns (Cont. 1)

3.12.263.2 
Error Resolution System (ERS) General Information

3.12.263.2.10 
Priority II Errors - Section Errors

3.12.263.2.10.4  (01-01-2015)
Correction Procedures

  1. ISRP Errors - You must check all fields of the section. If Section 01 of the return is coded, verify that the return is for the taxpayer whose name is in Section 01. After you correct the section, or if no corrections are necessary, transmit from the bottom of the screen.

  2. Terminus Errors - You must check all fields of the section. Make all necessary corrections. After you correct the section, or if no corrections are necessary, transmit from the bottom of the screen.

3.12.263.2.10.5  (01-01-2015)
Questionable Section

  1. Check and enter all of the data for the displayed section. After you correct the section, or if no corrections are necessary, transmit from the bottom of the screen.

  2. Correct all fields in the display before transmitting.

3.12.263.2.11  (01-01-2015)
Priority III Errors - Field Errors Definition

  1. Any field failing to meet the requirement(s) for that field will be shown as a Priority III error. Consistency and/or relationships with other fields will not be a factor. Some reasons for field errors include:

    • Non-numeric character in a numeric field

    • Non-alphabetic character in an alpha field

    • Blank space in a number field

    • Blank in the first position of an alpha field

    Note:

    Individual field validity errors to be bypassed after initial consideration are shown as Priority IV Errors.

3.12.263.2.11.1  (01-01-2015)
Display

  1. All fields with a Priority III Error will be displayed in columnar format in the order encountered in the record. The ACs and TPNCs do not display as a Priority III Error.

  2. An overflow field is identified by all question marks for a money field or a single pound sign in the last position of a name line.

3.12.263.2.11.2  (01-01-2015)
Correction Procedures

  1. If a field shows in error:

    1. Correct every error field displayed using the specific instructions within each section for the field in error.

    2. Check the information on the source document to determine if each displayed field has been correctly edited and transcribed.

    3. Enter the correct data for each field displayed.

    4. If there is no data for the field, blank the field.

    5. Correct every field displayed.

    6. Transmit.

3.12.263.2.12  (01-01-2015)
Taxpayer Notice Codes (TPNCs)

  1. Use this code when there is a math error which affects the tax liability or tax due/overpayment. Enter it on the terminal screen following the literal "NC" and write it on the upper left corner of the return.

  2. Enter the TPNC after you see that no further corrections to the record are needed. The TPNC tells the computer that no other corrections to the screen display will be made. Enter and transmit all corrections for each error condition before using a TPNC.

    If Then
    Math errors 1. Each math error has certain TPNCs that can be used to clear the error.
    2. The TPNC used must be valid for that Error Code.
  3. Each math error display needs either a correction to a field or the entry of a TPNC. You cannot make any other correction when transmitting a TPNC. TPNCs used for a math error will be shown on subsequent displays for the record. This field is used for display purposes only and cannot be corrected.

3.12.263.2.12.1  (01-01-2015)
TPNC 90

  1. TPNC 90 is a blank notice which contains up to 10 lines available on the notice for whatever statement is needed. The following information pertains to TPNC 90. Error Correction will prepare the exact wording of the error and attach it to the return. Notice Review will type math error explanation on the notice before mailing to the taxpayer.

    If Then
    More than 3 codes need to be used (a return can have as many as 3 TPNCs) Use TPNC 90 instead and list the errors for Notice Review to type and send to the taxpayer.
    TPNC 90 is used 1. This is a "fill-in" and should be used when no other TPNC fully explains the correction(s) made. The tax examiner will write exactly what should appear on the notice and attach it to the face of the return.
    2. Charge the return out and route directly to Notice Review or follow local procedures.
    3. Notice Review or the responsible party will type the math error explanation on the notice and mail it to the taxpayer.

    Note:

    In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the OnLine Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices. For a full listing of the programmed TPNC 90 Math Error Codes, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals.dr/sp-portal/bmf.dr/bmf_ers/job_aid.dr/TPNC-90-Math-Error-Code-Job-Aid.doc.

3.12.263.2.12.2  (01-01-2015)
Changing a TPNC

  1. Once you transmit a TPNC, it may be changed in the following manner:

    1. Records which have not been cleared from the terminal - if you still have errors after transmitting the TPNC you can create an error with a higher priority. This will delete all "C" Clear Codes and any notice code already assigned a lower priority error from the header display. The display will then show the high Priority IV error created and all subsequent errors, even though they may have been previously shown.

    2. A correction you make erases an error code which you have previously cleared with a TPNC or "C" Clear Code. In this case, the "C" or TPNC on this error and all subsequent error codes will be shown for resolution. The TPNC(s) for this error and subsequent error codes will be deleted from the header display.

    3. Records which have been worked may be reworked using CC GTRECW. See IRM 3.12.38, ERS General Information, for further details.

    4. All TPNCs are erased when a record is suspended with CC SSPND.

    5. If you do not completely work a case, the TPNCs you used on the unfinished records will not be there the next day.

3.12.263.2.12.3  (01-01-2015)
TPNCs and Their Notice Messages for Form 706

  1. The following information pertains to Form 706 Error Messages:

    Taxpayer Notice Code Taxpayer Notice Statement
    TPNC 36 We found an error in the computation of Net Estate Tax.
    TPNC 37 We found an error in the computation for State Death Taxes.
    TPNC 38 We found an error in the computation of Tentative tax.
    TPNC 39 We found an error when the credit amounts were added on Page 1, Part 2.
    TPNC 40 We found an error in the computation of the balance due.
    TPNC 41 We found an error in the computation of the Unified Credit amount. The Unified Credit amount you reported was $n,nnn,nnn,nnn,nnn.nn. The amount we recomputed is $n,nnn,nnn,nnn,nnn.nn.

    Note:

    For Form 706, use this TPNC for 2011 revisions and prior ONLY.

    TPNC 43 We found an error in the computation of the Applicable Credit amount. The Applicable Credit amount you reported was $n,nnn,nnn,nnn,nnn.nn. The amount we recomputed is $n,nnn,nnn,nnn,nnn.nn.

    Note:

    For Form 706, use this TPNC for 2012 revisions and subsequent.

    TPNC 42 We found an error in the computation of the Marital Deduction on Schedule A.
    TPNC 47 We found an error on Schedule R in the computation of Total Generation-Skipping Transfer Tax.
    TPNC 50 We found an error on Schedule R-1 - Generation-Skipping Transfer Tax.
    TPNC 54 We found an error in the computation of the balance due or overpayment amount.
    TPNC 64 We found an error in the computation of Line 3c, Taxable Estate.
    TPNC 70 We found an error in the computation of the gross estate tax amount on Line 8.
    TPNC 71 We found an error in the computation of the allowable Unified Credit amount on Line 11.
    TPNC 72 We found an error in the computation of the amount on Page 1, Part 2, Line 12.
    TPNC 73 We found an error in the computation of the Allowable Applicable Credit amount on Line 11.
    TPNC 82 We found an error in the computation of the amount on Page 1, Part 2, Line 18.
    TPNC 83 We found an error in the computation of your Total Tax amount.
    TPNC 90 TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than 3 math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what should appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.

    Note:

    In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the OnLine Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices. For a full listing of the programmed TPNC 90 Math Error Codes, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals.dr/sp-portal/bmf.dr/bmf_ers/job_aid.dr/TPNC-90-Math-Error-Code-Job-Aid.doc.

3.12.263.2.12.4  (01-01-2015)
TPNCs and Their Messages for Form 706-NA

  1. The following information pertains to Form 706-NA Error Messages:

    Taxpayer Notice Code Taxpayer Notice Statement
    TPNC 20 We found an error on Schedule A - Gross Estate in the U.S.
    TPNC 21 We found an error on Schedule B - Taxable Estate.
    TPNC 22 We found an error on Schedule B, Line 2 - Gross Estate Outside the U.S.
    TPNC 23 We found an error on Page 2, Part III, Schedule B, Line 3 - Entire Gross Estate wherever located.
    TPNC 24 We found an error on Schedule E -Jointly Owned Property.
    TPNC 25 We found an error on Schedule F -Other Miscellaneous Property not Reportable Under Any Other Schedule.
    TPNC 26 We found an error on Schedule G - Transfer During Decedent's Life.
    TPNC 27 We found an error on Schedule H - Powers of Appointment.
    TPNC 28 We found an error on Schedule I - Annuities.
    TPNC 29 We found an error on Page 2, Part III, Schedule B, Line 4 - Funeral expenses, administration expenses, decedents debts, mortgages and liens and losses during administration.
    TPNC 30 We found an error on Page 2, Part III, Schedule B, Line 5 - Deductions for expenses, claims, etc.
    TPNC 31 We found an error on Schedule L - Net Losses During Administration and Expenses Incurred in Administering Property Not Subject to Claims.
    TPNC 32 We found an error on Schedule M - Bequests, etc., to Surviving Spouse (Marital Deduction).
    TPNC 33 We found an error on Schedule O - Charitable, Public and Similar Gifts and Bequests (Charitable Deductions).
    TPNC 34 We found an error on Page 2, Part III, Schedule B, Line 8 - Total Deductions.
    TPNC 35 We found an error on Schedule Q - Credit for Tax on Prior Transfers.
    TPNC 36 We found an error in the computation of Net Estate Tax on Page 1, Part II, Line 12.
    TPNC 37 We found an error in the computation of the Credit for state death taxes on Page 1, Part II, Line 9.
    TPNC 38 We found an error in the computation of tentative tax on Page 1, Part II, Line 4, Tentative Tax on the amount on Line 3.
    TPNC 39 We found an error in the addition of the credit amounts Page 1, Part II, Line 11.
    TPNC 40 We found an error in the computation of the balance due.
    TPNC 41 We found an error on Page 1, Part II, Line 7, in the computation of Unified Credit.
    TPNC 44 We found an error in the computation of tentative tax on Page 1, Part II, Line 5, Tentative Tax on the amount on Line 2.
    TPNC 47 We found an error in the computation on Schedule R in computation of Total Generation-Skipping Transfer Tax.
    TPNC 50 We found an error on Schedule R-1 - Generation-Skipping Transfer Tax.
    TPNC 52 We found an error on Page 2, Part III, Schedule B, Line 9, and/or Page 1, Part II, Line 1, Taxable Estate.
    TPNC 54 We found an error in computing Page 1, Part II, Line 16, Balance Due.
    TPNC 56 We found an error in the computation on Page 1, Part II, Line 2, Total Taxable Gifts.
    TPNC 58 We found an error in the computation of the amount on Page 1, Part II, Line 8, Balance.
    TPNC 60 We found an error in the computation of the amount on Page 1, Part II, Line 9, Other Credits.
    TPNC 62 We found an error in the computation of the amount on Page 1, Part II, Line 15, Earlier Payments.
    TPNC 64 There was an error in computing the amount on Page 1, Part II, Line 18, U.S. Treasury Bonds Redeemed to Pay Estate Tax.
    TPNC 67 We found an error in the computation of the amount on Page 1, Part II, Line 3, Total.
    TPNC 68 We found an error in the computation of the amount on Page 1, Part II, Line 19, Total.
    TPNC 73 We found an error in the computation of the amount on Page 1, Part II, Line 6, Gross Estate Tax.
    TPNC 74 We found an error in the computation of the amount on Page 1, Part II, Line 8, Balance.
    TPNC 76 The amount claimed as prepaid tax with the extension of time to file on Page 1, Part 2, Line 18 was incorrect.
    TPNC 83 We found an error in the computation of your total tax amount.
    TPNC 90 TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than 3 math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what should appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.

    Note:

    In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the OnLine Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices. For a full listing of the programmed TPNC 90 Math Error Codes, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals.dr/sp-portal/bmf.dr/bmf_ers/job_aid.dr/TPNC-90-Math-Error-Code-Job-Aid.doc.

3.12.263.2.12.5  (01-01-2015)
TPNCs and Their Messages for Form 709

  1. The following information pertains to Form 709 Error Messages:

    Taxpayer Notice Code Taxpayer Notice Statement
    TPNC 10 We found an error in the computation of your taxable gifts for the current period.
    TPNC 11 We found an error in the computation of your total taxable gifts on Page 1, Part 2, Line 3.
    TPNC 12 We found an error in the computation of your tax on Page 1, Part 2, Line 4, Tax computed on the amount on Line 3.
    TPNC 13 We found an error in the computation of tax on Page 1, Part 2, Line 5, Tax computed on the amount on Line 2.
    TPNC 41 We found an error in the computation of the Unified Credit amount. The Unified Credit amount you reported was $n,nnn,nnn,nnn,nnn.nn. The amount we recomputed is $n,nnn,nnn,nnn,nnn.nn.

    Note:

    For Form 709, use this TPNC for 2011 revisions and prior ONLY.

    TPNC 42 We found an error in the computation of the marital deduction on Schedule A.
    TPNC 43 We found an error in the computation of the Applicable Credit amount. The Applicable Credit amount you reported was $n,nnn,nnn,nnn,nnn.nn. The amount we recomputed is $n,nnn,nnn,nnn,nnn.nn.

    Note:

    For Form 709, use this TPNC for 2012 revisions and subsequent.

    TPNC 48 We found an error in the generation-skipping transfer tax computation.
    TPNC 54 We found an error in the computation of the balance due or overpayment amount.
    TPNC 69 We found an error in the total gift tax computation on Page 1, Part 2, Line 6, Balance.
    TPNC 75 We found an error in the computation of Page 1, Part 2, Line 14, Total Credits.
    TPNC 76 The amount claimed as prepaid tax with the extension of time to file on Page 1, Part 2, Line 18 was incorrect.
    TPNC 79 We found an error in the computation of the total deductions amount on Page 3, Part 4, Line 8.
    TPNC 80 We found an error in the computation of the amount on Page 3, Part 4, Line 9.
    TPNC 81 We found an error in the computation of taxable gifts on Page 3, Part 4, Line 11.
    TPNC 83 We found an error in the computation of your total tax amount.
    TPNC 90 TPNC 90 is a blank notice that contains up to 10 blank lines which are available on the notice for whatever statement is needed. It is used when more than 3 math errors were made on the return or there is no math error code that meets the error condition on the return. The tax examiner will write exactly what should appear on the notice and attach it to the face of the return. Charge the return out and route directly to Notice Review and follow local procedures. Notice Review, or the responsible party, will type the math error explanation on the notice and mail it to the taxpayer.

    Note:

    In January 2014, the Taxpayer Notice Code (TPNC) 90 Math Error (ME) Code literals were programmed into the OnLine Notice Review (OLNR) Retype Application for Notice Review (NR). This addition will eliminate the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs/messages in the notices. For a full listing of the programmed TPNC 90 Math Error Codes, see TPNC 90 Math Error Code Job Aid on Servicewide Electronic Research Program (SERP) at http://serp.enterprise.irs.gov/databases/portals.dr/sp-portal/bmf.dr/bmf_ers/job_aid.dr/TPNC-90-Math-Error-Code-Job-Aid.doc.

3.12.263.2.13  (01-01-2015)
Status Codes

  1. Records for the documents in the Error Resolution System (ERS) are controlled by Status Codes. The status is updated when the record is placed in a specific inventory.

  2. Here is a list of the status codes with a brief explanation:

    1. Status 100, error awaiting correction. Records are in the Error Inventory.

    2. Status 2XX, record awaiting information. Records are in the Unworkable Suspense Inventory.

    3. Status 3XX, suspense period expired - no response. Records are in the Workable Suspense Inventory.

    4. Status 4XX, record with information, awaiting correction. Records are in the Workable Suspense Inventory.

    5. Status 900, Record is on the Unselected Inventory.

  3. The final 2 positions of the Status Code will consist of the first 2 positions of the AC. This will put similar work together on the Workable Suspense Inventory.

    Example:

    Status Code 321 means Suspense period expired, no response to taxpayer correspondence.

  4. Records whose Suspense Period has expired before being activated are automatically moved from Status 2XX to Status 3XX.

3.12.263.2.14  (01-01-2015)
Unprocessable Automated Data Processing (ADP) Returns

  1. The following information pertains to unprocessable ADP returns:

    If Then
    A return cannot be perfected, and it is necessary to correspond, perform in-house research or send the document to another area of the submission processing campus Suspend the record to start the required action.
    Suspending unprocessable record Enter CC SSPND followed by the appropriate AC.
    The AC cannot describe the required action Attach a note of explanation to the return (use routing slip).
    The tax examiner will not be issuing a letter through IDRS 1. Attach a Form 3696, Correspondence Action Sheet, to issue the correspondence.
    2. CC SSPND with AC 211 and attach appropriate Correspondence Action Sheet.

3.12.263.2.15  (01-01-2015)
Working Trails

  1. You must leave a legible "Working Trail" for those who may work with the return later. If your submission processing campus has a written "In-house Agreement" that differs from the instructions below, follow them. These procedures have been coordinated with Headquarters.

  2. Annotate the following items when making a change to the return:

    • Social Security Number

    • Tax Period

  3. Edit on the return the preparation of Letter 3024C, Math Error Explained (BMF), and Form 2275, Records Request, Charge and Recharge.

3.12.263.3  (01-01-2015)
Section 01 Data, Form 706 General Information

  1. Section 01 has entity data, remittance, fields for codes, IRS received date, and miscellaneous information.

  2. The remittance field cannot be changed by Error Resolution examiners. This field must be blank on non-remittance returns and all numeric on remittance returns.

  3. The message "Unrecognizable Field error - Contact Supervisor" will appear when a return has neither CCC "G" or Section 04 and there is an entry in Field 01PI (Payment Indicator).

3.12.263.3.1  (01-01-2015)
Error Record Format Section 01

  1. The Error Record Format for Section 01 is listed as follows:

    Field Designator on Form 706 Maximum Characters Field Name Location
    RMIT> 11 Remittance Green money, Page 1, Part 2, Line 20
    01NC 4 Name Control Check Digit Decedent's last name Page 1, Part 1, Box 1b
    >>>> 4 Name Control Underprint Computer Generated
    01SSN 9 Social Security No. Decedent's SSN, Page 1, Part 1, Box 2
    01DOB 8 Date of Birth Page 1, Part 1, Box 4
    01DOD 8 Date of Death Page 1, Part 1, Box 5
    >>>> 2 Fiscal Year Month (Gen) Computer Generated
    01CCC 10 Computer Condition Code Upper left margin
    01RCD 8 Received Date Date Stamp
    01PIC 1 Penalty and Interest Code Upper right margin
    01CAF 1 CAF Indicator Right margin, Page 1, Part 1, Box 6b
    01RFC 1 Refund Code ERS only field
    01PSN 9 Preparer (PTIN) Bottom right corner, Page 1
    01PEN 9 Preparer EIN Bottom right corner, Page 1
    01PTN 10 Preparer Phone Number Bottom right corner, Page 1
    01PI 1 Payment Indicator Right margin, Page 1, Part 2, Line 19
    01CRD 8 Correspondence Rec'd date Left margin, left of Page 1, Part 2, Line 4
    01RD> 8 Return Due Date Computer Generated

3.12.263.3.2  (01-01-2015)
RMIT> - Remittance

  1. This field is blank for non-remittance returns and remittance returns processed through the Remittance Processing System (RPS) system. It is a non-correctable field.

  2. The remittance amount is found on the Balance due line of a full-paid return and is shown by a green rocker. A partial paid return has the remittance amount entered in green beside the taxpayer's entry on the Balance Due Line.

3.12.263.3.3  (01-01-2015)
Field 01NC - Name Control/Check Digit

  1. This field is transcribed from the name line in the entity portion of the return. This field must be the first 4 alpha characters of the decedents last name.

3.12.263.3.3.1  (01-01-2015)
Invalid Conditions

  1. Field 01NC is invalid if:

    1. It is blank.

    2. The first position is not alpha.

    3. The 2nd, 3rd, and 4th positions are not alpha, hyphen or blank.

    4. There are any intervening blanks between characters.

3.12.263.3.3.2  (01-01-2015)
Correction Procedures

  1. The following information pertains to correction procedures:

    If Then
    The name control has been transcribed incorrectly Enter the correct name control.
    The name control is missing and cannot be found Research using local procedures.
    Found Enter the correct name control in Field 01NC and on the return.
    Still unable to determine the name control Suspend the record with AC 320.

3.12.263.3.4  (01-01-2015)
Field 01SSN - Social Security Number

  1. The SSN is a number assigned by the Social Security Administration (SSA) to identify potential Social Security contributors/recipients. The field is found on Page 1, Part 1, Box 2 of the return.

3.12.263.3.4.1  (01-01-2015)
Invalid Conditions

  1. Field 01SSN is invalid if:

    1. It is blank.

    2. It is not all numerics.

    3. It is less than 9 digits.

    4. It is all zeroes or nines.

3.12.263.3.4.2  (01-01-2015)
Correction Procedures

  1. The following information pertains to correction procedures:

    If Then
    A valid SSN is not found 1. Search for a correct number on the return or attachments.
    2. Research using IDRS to obtain a valid SSN.
    No SSN record is found or the SSN is invalid Suspend with AC 320 to secure a temporary SSN.
    The decedent has no SSN 1. The executor is instructed to use the decedents EIN.
    2. Verify the number is an EIN using CC INOLEG.
    3. Suspend with AC 320 for referral to Entity Control for a temporary SSN.
    More than one SSN is found Suspend with AC 320 for referral to Entity Control.
    Entity Control has assigned an SSN 1. Enter in Field 01SSN and on the return.
    2. Also enter the entity assignment date in Field 01CRD if it is after the return due date and the IRS received date.

3.12.263.3.5  (01-01-2015)
Field 01DOB - Date of Birth

  1. This field is transcribed from Page 1, Part 1, Box 4 of the return. The Date of Birth (DOB) is either blank or numeric in YYYYMMDD format.

  2. The DOB is used as a validity check on the DOD.

3.12.263.3.5.1  (01-01-2015)
Invalid Conditions

  1. Field 01DOB is invalid if:

    1. It is not all numerics.

    2. The month is not 01-12.

    3. The day is not valid for the month.

    4. Not in YYYYMMDD format.

3.12.263.3.5.2  (01-01-2015)
Correction Procedures

  1. Check for coding or transcription errors and correct as needed.

  2. If the DOB cannot be found, blank the field.

3.12.263.3.6  (01-01-2015)
Field 01DOD - Date of Death

  1. This field is transcribed from Page 1, Part 1, Box 5 of the return. It is entered in YYYYMMDD format.

  2. The DOD determines the due date of the return. It also determines which tax laws and rates are in effect for the estate.

  3. The following table pertains to due dates of returns:

    Exception:

    If the date of death is between January 1, 2010, and December 17, 2010 (inclusively); the return due date is September 19, 2011, as mandated in the Extender's Legislation (PL 111-312).

    Month of Death Month Due
    January October
    February November
    March December
    April January
    May February
    June March
    July April
    August May
    September June
    October July
    November August
    December September
  4. The following table provides examples of due dates:

    If Then
    DOD is 01-01-2010 thru 12-17-2010 (inclusively) Due date is 09-19-2011
    (per Extender's Legislation the date should be 09-17-2011, but that is a Saturday).
    DOD is 12-18-2010 thru 12-31-2010 Due date is 09-30-2011
    DOD is 05-31-13 Due date is 02-28-14
    DOD is 07-31-13 Due date is 04-30-14
    DOD is 10-31-13 Due date is 07-31-14

3.12.263.3.6.1  (01-01-2015)
Invalid Conditions

  1. Field 01DOD is invalid if:

    1. It is blank.

    2. It is not all numerics.

    3. The month is not 01-12.

    4. The day is not valid for the month.

    5. Not in YYYYMMDD format.

3.12.263.3.6.2  (01-01-2015)
Correction Procedures

  1. Check for coding or transcription errors and correct as needed.

    If Then
    The DOD is blank, incomplete, or illegible on the return Check attachments or research CC INOLE for DOD.
    The DOD cannot be found Suspend with AC 211 and attach appropriate Correspondence Action Sheet.
    A reply to correspondence is not received The Reject function should enter a date 9 months earlier than the IRS received date.

3.12.263.3.7  (01-01-2015)
Field 01CCC - Computer Condition Codes (CCCs)

  1. CCCs tell the computer what to do when certain conditions are met. For example, CCC "R" stops the computer from calculating a delinquency penalty when the taxpayer presents reasonable cause for filing the return late.

  2. Since these codes tell the computer what to do, they also post to the Master File so that people looking at the file can tell what actions were taken on the return.

  3. CCCs are transcribed from the upper left hand corner of the return. The following CCCs will be used for Form 706.

3.12.263.3.7.1  (01-01-2015)
Invalid Conditions

  1. Field 01CCC is invalid if:

    1. Any letter or number other than the following is entered: B, D, G, L, O, R, W, X, Y, 3, and/or 7.

    2. CCC "G" is present with any other CCC except "W" .

    3. CCCs "D" , "R" , and "7" are all present.

3.12.263.3.7.2  (01-01-2015)
Correction Procedures

  1. Check for coding and transcription errors and correct as needed.

  2. When the codes entered on the return are illegible or invalid, check the return to determine the correct code(s) and enter on the screen.

    If Then
    Any other CCCs are present with "G" and "W" and/or "3" Delete the other codes if the "G" is needed.
    CCC "G" is not needed Delete it and leave the other codes. Review all sections and input data where necessary.
    CCCs "D" and "R" are present with CCC "7" Determine which is correct and delete the incorrect CCC.
  3. Since Form 706 has eleven CCCs, and of these only a maximum of 6 can be valid at the same time, you should not see more than 10 codes. If you do, delete any invalid codes. Check the remaining codes to ensure that no other invalid conditions are met and delete any other invalid codes based on the instructions found in this paragraph.

3.12.263.3.7.3  (01-01-2015)
CCC "B"

  1. B - Victims of Terrorism Relief - Enter CCC "B" when the Form 706 is annotated at the top of Page 1 of the return with either references to "Section 2201" , or has any indications the return is in accordance with legislation impacting victims of terrorist attacks April 19, 1995 (Oklahoma City bombing), September 11, 2001 (World Trade Center bombing), or references to deaths resulting from anthrax that occurred on or after September 11, 2001, and before January 1, 2002.

3.12.263.3.7.4  (01-01-2015)
CCC "D"

  1. D - Reasonable cause for failure to pay taxes timely - Enter CCC "D" on a delinquent balance due return when the taxpayer has attached a statement establishing a reasonable cause for their failure to make payments.

    If Then
    Precomputed penalty is shown on the return Do not edit CCC "D" .
    The taxpayer's explanation for failure to pay timely is unacceptable and reasonable cause is not established 1. Do not edit CCC "D" to the return.
    2. Instead, correspond and tell the taxpayer why their explanation was not accepted, and inform them of the available appeal rights.
    3. Letter 854C, Penalty Waiver or Abatement Disallowed/Appeals Procedure Explained, may be used for this purpose. See IRM 20.1, Penalty and IRM 20.2, Interest, for reasonable cause criteria.

    Note:

    In cases involving failure to pay and failure to file/delinquency, the Compliance Services, Estate and Gift Tax Campus Operation may make the determination regarding reasonable cause for both. Edit the return accordingly.

3.12.263.3.7.5  (01-01-2015)
CCC "G"

  1. G - Amended Return - CCC "G" should be entered on returns marked "Amended" , "Superseding" , "Duplicate" , "Corrected" , "Supplemental" , etc. CCC "W" and/or "3" can be used with a CCC "G" .

    Note:

    Taxpayers may send a copy of the front page of their return with a payment. These copies may get numbered and processed. If correspondence is needed for missing information and the return is marked "COPY" , research BMFOLI/BMFOLT and/or BRTVU for duplicate returns.

3.12.263.3.7.6  (01-01-2015)
CCC "L"

  1. L - Treaty Based Positions.

    If Then
    The filer has written "IRC 6114" on the return or Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), is attached to the return Enter CCC "L" .

3.12.263.3.7.7  (01-01-2015)
CCC "O"

  1. O - Module Freeze.

    If Then
    A completed Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund (IGR), is attached to the return 1. Enter CCC "O" . If the refund is $1,000,000 or more, enter a "1" in Field 01RFC.
    2. These show that a pre-settlement manual refund was made. (The freeze is released by posting TC "840" .)
  2. The Refund Code of "1" is entered by ERS in Field 01RFC to show that a refund of $1,000,000 or more has been issued.

    Note:

    Field 01RFC is an "ERS Only" input field.

  3. Due to the large amounts of interest we (IRS) would pay if a refund of this size is not handled timely, these returns will have the refund processed manually.

    Note:

    See IRM 3.12.263.2.2.2 to ensure the refund is issued timely.

3.12.263.3.7.8  (01-01-2015)
CCC "R"

  1. R - Reasonable cause for delinquency.

    If Then
    Taxpayer has attached a statement establishing reasonable cause for delinquency 1. Detach statement and send copies of Pages 1 and 2 of Form 706 to the Compliance Services, Estate and Gift Tax Campus Operation.
    2. Process return as normal.
    3. Compliance Services, Estate and Gift Tax Campus Operation will make the determination (of reasonable cause).
    4. Enter the appropriate CCC (e.g., "R" (for "reasonable cause" ) or "7" (for "reasonable cause denied" )).

    Note:

    The Compliance Services, Estate and Gift Tax Campus Operation will make determinations in cases regarding reasonable cause for failure to file or delinquency situations ONLY. (See instructions contained in IRM 3.11.106.5, Computer Condition Codes (CCCs), regarding handling of reasonable cause and the coding of CCCs "R" , and "7" ).

3.12.263.3.7.9  (01-01-2015)
CCC "W"

  1. W - Cleared by Statute - The following instructions pertain to returns which were reviewed and cleared by Statute Control.

    If Then
    The return has been stamped "Cleared by Statute" 1. Enter CCC "W" .
    2. A return that has been cleared by the Statute Control function will be stamped "Cleared by Statute" .

3.12.263.3.7.10  (01-01-2015)
CCC "X"

  1. X - Return Settlement Frozen - The following instructions describe the application and correction of CCC "X" (Return Settlement Frozen).

    If Then
    Taxpayer indicates that excess remittance with return or overpayment be applied to another account Enter CCC "X" .

3.12.263.3.7.11  (01-01-2015)
CCC "Y"

  1. CCC "Y" is used to denote Assistance Needed/Special Handling Returns, Combat Zone Returns, Early-Filed Returns, and Gift Tax Paid.

  2. Combat Zone Returns - returns of citizens or residents of the United States who were killed in action or who died as a result of wounds, disease or injury received while serving in a Combat Zone. The decedent is entitled to lower estate tax per IRC 2201 and IRC 2011(d). The tentative tax equals 125% of the maximum allowable state death tax credit. All other credits against estate tax (including the Unified/Applicable Credit) apply to these returns.

  3. These estates have their own tax schedule, so ERS must compute tax manually.

3.12.263.3.7.12  (01-01-2015)
CCC "3"

  1. "3" - No Reply to Correspondence - Suppress Credit Interest. Enter this code to suppress credit interest from being generated when no reply is received for correspondence sent to the taxpayer.

3.12.263.3.7.13  (01-01-2015)
CCC "7"

  1. "7" - Reasonable Cause Statement Denied - Use when the taxpayer's statement for failure to file or pay taxes timely does not meet reasonable cause criteria. (Compliance Services, Estate and Gift Tax Campus Operation will make the determinations of reasonable cause in cases involving Form 706 (Estate Tax) and Form 709 (Gift Tax) situations. See instructions in IRM 3.11.106, Estate and Gift Tax Returns.)

    Note:

    Beginning with Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes, filed for estate returns due after July 25, 2001, an executor may apply for an automatic 6 month extension of time to file Form 706 if the Executor files Form 4768 by checking the designated box and completing the form as instructed. An extension of time to file does not extend the time to pay.

    Reminder:

    The Treasury Department and IRS believe it is reasonable to grant the estates of 2010 decedents an automatic extension of time to file the estate tax return and an extension of time to pay the estate tax. Accordingly, the Treasury Department and IRS grant the executor of a 2010 estate who files a Form 4768 by the due date for filing Form 706 or Form 706-NA both an automatic six month extension of time to file Form 706 or Form 706-NA pursuant to Section 6081, and a six month extension of time to pay the estate tax. The executor of a 2010 estate is not required to substantiate on the Form 4768 the reason for requesting an extension of time for payment of the estate tax to receive the six month extension of time to pay the estate tax due. If the executor (of a 2010 decedent) requests an extension of time to pay for more than six months (on Form 4768), justification needs to be provided.

    If Then
    CCCs "D" and "R" are present Do not enter CCC "7" if both are present. However, CCC "7" may be present with either CCC "D" OR "R" , but not with both codes simultaneously. Use Letter 854C, Penalty Waiver or Abatement Disallowed/Appeals Procedure Explained, to notify the taxpayer of the denial.

3.12.263.3.8  (01-01-2015)
Field 01RCD - Received Date

  1. The IRS received date is used to determine if penalties such as failure to file or pay apply, and if so, helps to determine the amount of the penalty. It is also used to provide certain validity checks. This field is transcribed from the stamped or edited date in the center of Page 1 of Form 706. The IRS received date is entered in YYYYMMDD format and must be present on all Form 706s.

3.12.263.3.8.1  (01-01-2015)
Invalid Conditions

  1. Field 01RCD is invalid if:

    1. It is not present.

    2. It is not all numerics.

    3. The month is not 01-12.

    4. The day is not valid for the month.

    5. It is not in YYYYMMDD format.

    6. It is prior to the ADP date (January 1, 1962).

    7. The IRS received date is after the processing date.

3.12.263.3.8.2  (01-01-2015)
Correction Procedures

  1. Check for coding or transcription errors and correct as needed.

  2. IRS received date: This date must be present on all returns. If the date has not been stamped or edited on the first page of the return, research return and attachments and see procedures below. Enter it in YYYYMMDD format. Caution should be taken to determine when a return was filed or became processable. Determine received date from return or attachments in the following priority:

    • IRS date stamp

      Note:

      Earliest date stamp by Submission Processing Campus, Area Office, U.S. Consulate, or Revenue Officer.

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

    • Postmark date on envelope

    • Designated private delivery service

    • Signature date

    • Julian date minus 10 days

    Caution:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ despite Saturday, Sunday or holiday extension dates. If the form is date stamped ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . If that date shows legal timely mailing without regard to a due date falling on Saturday, Sunday or holidays, change the IRS received date to the postmark date.

    Reminder:

    The Treasury Department and IRS believe it is reasonable to grant the estates of 2010 decedents an automatic extension of time to file the estate tax return and an extension of time to pay the estate tax. Accordingly, the Treasury Department and IRS grant the executor of a 2010 estate who files a Form 4768 by the due date for filing Form 706 or Form 706-NA both an automatic six month extension of time to file Form 706 or Form 706-NA pursuant to Section 6081, and a six month extension of time to pay the estate tax. The executor of a 2010 estate is not required to substantiate on the Form 4768 the reason for requesting an extension of time for payment of the estate tax to receive the six month extension of time to pay the estate tax due. If the executor (of a 2010 decedent) requests an extension of time to pay for more than six months (on Form 4768), justification needs to be provided.

    Note:

    If both U.S. Postal Service and private meter marks are present, honor the U.S. Postal Service marks.

    If Then
    More than one date is stamped Use only the earliest date.
    A return has been identified as unprocessable and the taxpayer has been contacted for additional information Do not change the original IRS received date, but also enter correspondence received date (Field 01CRD).
  3. Private Delivery Services - A Private Delivery Service (PDS) is a business which delivers packages. The timely mailing as timely filing rule now applies to some PDSs. When the rule applies to a PDS, it is referred to as an IRS designated PDS. Only use marks from a designated PDS to determine the IRS received date.

    Note:

    Private delivery services do not deliver to PO boxes. Taxpayers must use the U.S. Postal Service to mail any item(s) to an IRS PO Box address.

3.12.263.3.9  (01-01-2015)
Field 01PIC - Penalty and Interest Code

  1. The Penalty and Interest Code is transcribed from the top right hand corner of Form 706. Field 01PIC should be coded "1" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and displays an amount for precomputed penalty and interest.

3.12.263.3.9.1  (01-01-2015)
Invalid Condition

  1. Field 01PIC is invalid if it is other than blank or "1" .

3.12.263.3.9.2  (01-01-2015)
Correction Procedures

  1. Check for coding or transcription errors and correct as needed.

3.12.263.3.10  (01-01-2015)
♦Field 01CAF - CAF Indicator♦

  1. Editing of CAF codes is no longer required.

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

3.12.263.3.10.1  (01-01-2015)
Invalid Condition

  1. Field 01CAF is invalid if it contains any entry.

3.12.263.3.10.2  (01-01-2015)
Correction Procedures

  1. If a code is present on the screen, clear Field 01CAF.

  2. Leave a "limited" POA attached to the return. A "limited" POA restricts the authorization to the preparation of the return to which it is attached.

  3. Original documents, photocopies, or documents submitted by facsimile transmission (FAX) are acceptable for processing.

  4. The Form 2848, Power of Attorney and Declaration of Representative, and Form 8821, Tax Information Authorization, should contain the following information:

    • The name, SSN and address of the taxpayer

    • The name and address of the designated representative (POA) or appointee (TIA)

    • The type of return (individual, corporate, etc.) and the tax form number

    • The tax year(s) or period(s)

    • The taxpayer's signature and date of signature

    • For Form 2848 only, a signed and dated declaration of good standing from the representative

    Note:

    You may not send refunds to appointees named on a TIA. Route the authorization to the submission processing campus CAF function for further processing.

  5. If the POA/TIA is received, not attached to any return or document, route it to the Submission Processing Campus CAF function. If the authorization is attached to the correspondence, review the correspondence to determine if other requests were made. If they were, photocopy the correspondence and send the copy along with the authorization to the CAF function for processing. If not, send correspondence and authorization to the CAF function for processing.

  6. Do not detach and send POAs/TIAs filed for specific issues unless the document authorizes recognition for a return besides the specific issue. In that case, a copy of the POA/TIA should be sent to the CAF function to input the return portion by the CAF system. Examples of specific issues include but are not limited to the following:

    • Form 843, Claim for a Refund and Request for Abatement.

    • Form SS-4, Application for Employer Identification Number.

  7. "General Powers of Attorney" or "Durable Powers of Attorney" do not contain sufficient information to process on CAF and should be retained in the case file or left attached to the related return. However, if a general or durable power of attorney is submitted with a completed Form 2848 (a transmittal power of attorney), send both forms to the CAF function for processing.

3.12.263.3.11  (01-01-2015)
Field 01RFC - Refund Code (ERS Only Input)

  1. The Refund Code of "1" is entered only by ERS in Field 01RFC to show that a refund of $1,000,000 or more has been issued.

    Note:

    Enter CCC "O" in Field 01CCC when either a completed Form 3753, Manual Refund Posting Voucher, or Form 5792, Request for IDRS Generated Refund (IGR), are attached to the return, if this has not already been done. The entries in these fields show that a pre-settlement manual refund was made. (The freeze is released by posting a Transaction Code "840" .) See IRM 3.12.263.2.2.2 to ensure the refund is issued timely.

  2. Due to the large amounts of interest we (IRS) would pay if a refund of this size is not handled timely, these returns will have the refund processed manually.

3.12.263.3.11.1  (01-01-2015)
Invalid Condition

  1. Field 01RFC is invalid if it contains a numeric entry other than a blank or "1" .

3.12.263.3.11.2  (01-01-2015)
Correction Procedures

  1. Verify that the refund is for $1,000,000 or more and that a manual refund has been prepared, then enter a "1" in Field 01RFC.

    If Then
    The refund has not been issued 1. SSPND using AC 341.
    2. Attach routing slip, and note "Manual Refund" .

3.12.263.3.12  (01-01-2015)
♦Field 01PSN-Preparer's Tax Identification Number (PTIN)♦

  1. The Preparer's SSN (2009 and prior revisions) or Preparer's Tax Identification Number (PTIN) is located to the right of the Preparer's Signature at the bottom right corner of Form 706 (Page 1).

  2. The Preparer's SSN must be a 9 digit numeric character. The SSN cannot be all zeros or nines.

  3. A PTIN is a valid entry in the Preparer's Social Security Number area at the bottom of Form 706. The PTIN is an 8 digit number preceded by the alpha "P" (e.g., PXXXXXXXX).

  4. Delete the Preparer's SSN or PTIN if it is invalid.

3.12.263.3.13  (01-01-2015)
♦Field 01PEN-Firm's EIN♦

  1. The Firm's EIN (EIN-2009 and prior revisions) is located below the Preparer's PTIN box (Preparer's SSN or PTIN box for 2009 and prior revisions) at the bottom right corner of Form 706 (Page 1).

  2. The Firm's EIN must be a 9 digit numeric character. The EIN cannot be all zeros or nines.

  3. Delete the Preparer's EIN if it is invalid.

3.12.263.3.14  (01-01-2015)
♦Field 01PTN-Preparer Phone Number♦

  1. The Paid Preparer's Phone Number is located below the Firm's EIN (EIN for 2009 and prior revisions) at the bottom right corner of Form 706 (Page 1).

  2. No action is required on amended returns.

  3. If a complete Paid Preparer's Phone Number is located elsewhere on the return or attachments, edit to the "Phone no." line.

  4. If a complete Paid Preparer's Phone Number is not located or the number is illegible, delete the incomplete or illegible phone number.

3.12.263.3.15  (01-01-2015)
Field 01PI - Payment Indicator

  1. This field is transcribed from the bottom right margin of Page 1, Part 2, Line 20 of Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return. (This information was transcribed from Line 25 on returns for Tax Years 2002 through 2004, Line 27 on returns for Tax Years 1998 through 2001 and from Line 28 on Form 706 for 1997 and prior years.)

  2. This indicator shows when installments and/or deferments are granted, and/or when U.S. Treasury bonds are submitted in payment of the estate tax.

    Note:

    Currently, only PI codes "0" and "1" are being used. See IRM 3.12.263.3.15.2, Field 01PI-Payment Indicator Correction Procedures.


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