This section tells you how to correct errors made on certain estate tax returns by both taxpayers and by campus processing. These errors will be shown on the Error Resolution System (ERS). ERS errors are corrected directly on terminal display screens rather than using paper error registers. There will be no basic change to the flow of work through the campus pipeline.

The General Subsection covers the returns listed in items (a) through (d), below. If general and specific instructions conflict, follow the specific instructions. The forms for which ERS text instructions are provided in this manual are listed as follows:

See Figure 3.12.263-1 for information on the Document Locator Number (DLN). The Document Code for Form 706 is 5 and the Tax Class is 6; for Form 706-NA the Document Code is 5 and the Tax Class is 5. The Master File Tax (Class) Code (MFT) is 52 for both forms..

Figure 3.12.263-1

This text is structured to give you corrective procedures and help you to find them quickly.

The text is structured as follows:

This text provides enough information to correct most error conditions. You may sometimes need to see the instructions in IRM 3.11.106, Estate and Gift Tax Returns. If there is any difference between the instructions contained in IRM 3.11.106 and those in IRM 3.12.263, follow the instructions contained in IRM 3.12.263 and contact the analyst responsible for IRM 3.11.106 and 3.12.263, using local procedures.

The purpose of the BMF Consistency initiative is to achieve consistency in the BMF Error Resolution System (ERS) processing Internal Revenue Manuals (IRMs).

Topics for BMF Consistency have been identified and developed as a coordinated effort between Cincinnati, Ogden, and Wage and Investment (W&I) (Paper Processing Branch, BMF Code & Edit/ERS Section).

BMF Consistency sections are identified by a "♦ " (diamond) before and after the section title.

The text in normal print within a consistency section signifies the common processes to be used for all BMF returns. The text in bold print is form-specific and applies to this IRM only.

The forms listed below are used or referred to in estate and gift tax return processing:

OLE is an On-Line Entity system designed to allow for validation of the Taxpayer Identification Number (TIN) and TIN/Name Control on-line with the Integrated Data Retrieval System (IDRS) input Command Codes (CCs). It is also designed to allow for entity research on a national basis.

The national file is called National Accounts Profile (NAP) and is accessed by using CC INOLE. It is a file of all accounts nationwide. For detailed information and usage of command code INOLE, see IRM 2.3, IDRS Terminal Responses.

INOLE can be used to research name controls. For example, when the TIN is sent to the Master File for validation, but the Name Control mismatches, you must research to determine the correct Name Control. If information present on INOLE is consistent with information on the tax return, you can correct the error. If research does not determine the correct Name Control, then use other research command codes (i.e., NAMES/NAMEI) to determine a better TIN.

Since Master File does not carry all information available on the IDRS screen displays it may be necessary to initiate IDRS research using Command Codes (CCs) such as INOLE, ENMOD, BMFOL or BRTVU.

Use these CCs to research entity and/or tax data which may not be available on IDRS. In most cases, the response will appear on the screen in 5 seconds or less.

Corporate Files On-Line (CFOL) CCs:

Any returns secured by Compliance will have a Transaction Code (TC) 59X and the appropriate Closing Code input by Compliance prior to processing.

These returns will be identified by a stamped or handwritten TC 59X and Closing Code in the middle left-hand margin of Page 1 of the return.

If there is a math error and taxpayer correspondence is required, SSPND with Action Code (AC) 640 to Rejects for unprocessable conditions. Rejects will void the document from the system and send the document to Compliance Services, Estate and Gift Tax Campus Operation, for further processing. DO NOT correspond with the taxpayer or executor for clarification or additional information.

Estate Tax Returns must contain specific items before they are considered processable. Perfect all returns to the extent possible from schedules and other attachments. The specific items needed are:

If any of the above items are missing or cannot be perfected, give the return to your manager to give to the Estate Tax Attorney.

Gift Tax Returns need the following information:

The following table pertains to unprocessable conditions for an incomplete Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return:

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should.

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

The following subsections provide information for Taxpayer Advocate Service (TAS) cases.

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

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

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

Follow the instructions below for processing CIS returns.

Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, for a U.S. citizen residing in the U.S., a resident alien, or a nonresident U.S. citizen whose domicile is not in the United States must be filed at CSPC.

The following information pertains to the due date of Form 706:

In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin) husband and wife each usually are considered to own half of the property owned by either one.

Community property laws apply to estate tax returns if the taxpayer is domiciled in a community property state at the time of death. Accept taxpayers claimed domicile. Half of the community property interest must be included in the decedent's gross estate.

ERS Action Code—A 3 digit numeric code used to put the document in suspense. This shows the need for additional information not available in the record or on the return. Only one action code can be used on a record at a time.

Computer Condition Code—A 1 digit number or letter used to identify a specific condition or computation on a return.

Entity Index File (EIF)—Computer file that stores name data for each SSN on file. A check is made between the SSN and name entered. This check is made during transcription.

Error Code—A 3 digit numeric code naming a specific math or consistency error in an error record.

Error Records—Data records failing any of the math or validity checks on the Generalized Mainline Framework (GMF) system or containing an invalid or incomplete action code.

Generalized Mainline Framework (GMF)—The system used to process and control all documents through the submission processing campus pipeline.

Key Index File (KIF)—A computer file of TINs which can be accessed by using command code NAMES/NAMEI with name and address data.

Perfecting the Tax Return and Error Screen Displays.

Make sure the taxpayer's entries are on the correct lines of the tax return. Check for coding and transcription errors in each section and field of the screen display and on the return and correct as needed. Follow specific instructions and local procedures (such as Quality Alerts) for all sections and fields. Make sure all sections and fields were transcribed.

When you correct the screen display, correct the tax return. When using a taxpayer notice code, write the 2 digit number(s) in the upper left hand corner of the return. Leave a working trail at the point of error on the return or schedule for each correction made to the taxpayer's figure. See IRM 3.12.263.3.15 , Working Trails, for further instructions. If the information is on the page, arrow it to the correct line.

Money Amounts—When correcting the screen display, make sure money amounts within a section have been transcribed in dollars and cents or dollars only, whichever is applicable. Place brackets around negative amounts on the return.

Missing Signature—A signature is needed on all returns. If the signature area on the tax return is not signed, SSPND with Action Code 225 (Signature Only - Domestic Returns) or 226 (Signature Only - Foreign Returns).

The Command Codes (CCs) used to correct and research the Error Inventory and the Workable Suspense Inventory are described below. They are also explained in IRM 3.12.38, Error Resolution System (ERS), General Instructions. Any CC permitted by the employee's security file will be available to the tax examiner.

Enter CCs correctly, or you will get an error message. Correct the data entered with the CC and transmit.

The ERS Action Code (AC) indicates that certain information is missing or that the record should be rejected from processing. The code will have sufficient detail to indicate if correspondence is to be sent to the taxpayer or specific in-house research or action is required.

See Action Code table below for the appropriate codes:

Document Perfection tax examiners will give a 3 digit code to numbered returns when they cannot process the return in the present form until additional information is received or some manual intervention is required.

Document Perfection will attach Form 3696, Correspondence Action Sheet, to begin correspondence. Use the AC and state what missing information is needed.

A valid AC other than 001 places the record in Suspense Inventory, either Workable or Unworkable.

Only assign one AC at a time to a record. The priority of the ACs are 310, 320, 4XX, 6XX, 3XX, 2XX.

Code and Edit tax examiners will enter ACs on the bottom left hand corner of the return.

An ERS tax examiner may enter an AC on a record, delete or correct an invalid code or may replace the present AC with another to either re-suspend or reject from ERS.

A Reject tax examiner entering a valid AC with CC RJECT rejects the record from ERS. Generally the Service Center Control File (SCCF) will be automatically updated for the rejected records. An Unpostables tax examiner entering an AC with CC NWDLN rejects the record from the ERS inventory and establishes the new DLN under which the record is to be entered.

The computer generates a Form 4251, Return Charge Out, for all new suspense items. Use the form to pull documents to route the controlling documents while holding the record in suspense and to associate the document in the Workable Suspense Inventory when the record becomes workable.

When you cannot perfect a record, reject it from ERS by using CC SSPND/RJECT with AC 640. Unpostables will take action to have the DLN voided.

You may be able to perfect but the record may need renumbering because the DLN or remittance amount may need correcting. Suspend with AC 610 or 611.

Use the letter "C" as a Clear Code to remove the error codes (consistency errors) when you do not have to change or correct the record to fix the error. The display will show a Clear field, labeled "CL" if a Clear Code can be used. The Clear field can be found to the right of "CRECT" on the screen display.

Clear an error code with an available Clear Code by either correcting the problem or entering a "C" to state no correction is needed. If other corrections are needed, they must be entered and transmitted prior to entry of the Clear Code "C" . Make sure that all corrective procedures have been followed for each individual error code before entering a "C" in the Clear Code field.

Use Clear Code "C" to clear the AC from the screen after completing corrections, or when AC 410 and 700 are used. The AC must be cleared before other errors in the record can be resolved. The presence of the "C" with a Priority I Error states you have made the corrections to the AC and now wish to see any other errors on the record.

Use Clear Code "000" to delete all action codes only when you have invalid and erroneous ACs and there is no reason to suspend the record. Suspense correction cannot use "000" .

When you suspend a record with CC SSPND, programming erases all "C" Clear Codes for error codes and action codes for the new day's Error Inventory and Workable Suspense Inventory.

Unfinished records from the previous day contain none of the "C" Clear Codes given to a record not completely worked.

Error Codes (including ones which may require a "C" Clear Code) are numbered consecutively for correcting.

The "C" Clear Code will prevent any other corrections to the record to accompany the "C" Clear Code. If a correction must be entered, but you have already transmitted the "C" Clear Code, enter CC GTSEC 01 and put a "G" in Field 01CCC. Transmit and remove CCC "G" when the Error Code 010 appears to reset the record. If you used CC SSPND and the record is no longer displayed, then use CC GTRECW to make any corrections.

The Error Resolution System identifies errors based on type and priority. The record heading shows the type of error. Types include:

Tax examiners may find that programming has not included a field or section needed to correct an error. In this event, use CC GTSEC to get the needed field. This should be reported to Headquarters for correction of the display.

All records with an invalid AC assigned by Document Perfection will be placed in the Error Inventory and shown as a Priority I Error.

All records with a valid AC will be assigned to a Suspense Inventory and shown as Priority I Error.

See also IRM 3.12.38, BMF SC Error Resolution Systems, for additional information regarding ACs and/or Priority I Errors.

The Integrated Systems Remittance Processing (ISRP) should eliminate most editing, missing section, and terminus errors. If normal ISRP validity checks have been bypassed, edit errors and/or terminus errors may be present.

Edit Error — A section with an error detected by ISRP. Edit errors will be coded as follows:

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: