Part 3. Submission Processing

Chapter 14. Notice Review

Section 2. Notice Review - Business Master File (BMF) Notice Review (Cont. 3)

3.14.2  Notice Review - Business Master File (BMF) Notice Review (Cont. 3)

3.14.2.7 
Tax Examiner Review Procedures

3.14.2.7.23 
Notice Disposition

3.14.2.7.23.2  (01-01-2013)
Printing Notices

  1. Print the notice when:

    1. All the notice elements are correct, no adjustment is pending, and no correction will be made to the account.

    2. There is a requirement to mail the notice.

      Note:

      Do not input a history item on IDRS for mailing a notice.

3.14.2.7.23.3  (01-01-2013)
Voiding Notices

  1. Void the notice when:

    1. The taxpayer does not need to receive the notice information.

      Example:

      Returning to the taxpayer’s original tax figures and the resulting refund is what the taxpayer expected or there is no balance due.

    2. After the adjustment action, the account will have no math error or ES discrepancy. It will be an overpaid, or an even balance, or have a balance due of less than ≡ ≡ ≡ . The adjustments must match the taxpayer’s figures, AND any incorrect refund will be deleted or the module will be an overpaid balance, which will either result in a refund or a credit elect as the taxpayer expected.

    3. It would cause a misunderstanding by the taxpayer.

    4. Reprocessing a return. (Use Hold Code 4 on the tax adjustment.)

  2. If voiding the original notice, prevent the subsequent notice or use the Local Control File to intercept and void the subsequent notice.

  3. Do not void an Adjustment Notice unless one of the following is true:

    1. The original notice was voided and the conditions in Printing Notices are not met.

    2. The original notice is retyped to include the corrected information.

  4. If the original Balance Due Notice was voided in error and the subsequent CP 210/220 is selected, release the CP 210/220 with the current notice module information. If the taxpayer contacts Customer Service to inquire why a previous notice was not sent, the Customer Service Representative will be able to read the account history and explain the account activity to the taxpayer.

3.14.2.7.23.4  (01-01-2013)
Retyping Notices

  1. Retype a notice when changes to the notice module requires the updating of the notice elements to correctly reflect the updated tax module information. Listed are some of the conditions which require a retype of the original notice:

    1. An adjustment to the taxpayers original figures increases tax or decreases credits

    2. The original balance due amount is increased

    3. An adjustment to the notice module changes the module balance from balance due to overpaid

    4. The original TPNC(s) requires correction

    5. The original refund interest allowed is reduced or no longer applicable

      Example:

      A CP 210 generated and the amount refunding was requested as a credit elect. If the credit is transferred to another module, the interest shown on the notice will be incorrect. The notice must be retyped to (1) remove the credit interest amount; (2) deduct the erroneous credit interest from the overpayment amount; and (3) apply Label #7 to notice before mailing.

  2. Retype a notice to a CP 173 when the computer assessed an ES Penalty and there is no ES discrepancy or math error on an overpaid module.

  3. Use a Hold Code when retyping the original notice to prevent the subsequent notice or use the Local Control File to intercept the subsequent notice.

  4. Use CC ACTON to enter a history item on IDRS when retyping a notice. If retyping to a different notice, include both CP numbers in the history item, such as RYT112-161 as an example.

  5. If a Balance Due Notice is held past the notice cycle, update the Pay by date to the current cycle Pay by date. Update the balance due, penalties, and interest as well.

    1. Change the balance due amount only if there is a ≡ ≡ ≡ or greater increase over the original balance due. Use CC INTST to obtain an updated balance when no restrictive conditions exist on IDRS.

    2. Use CC ACTON to enter a history item on the notice module, e.g., UPDATECP__ or RETYPECP__ . Also input a CC STAUP for 6 cycles on Balance Due Notices.

      Caution:

      Change the Pay by date printed on a CAF Mismatch notice only when the Pay by date printed on the original taxpayer notice is also changed. The CAF Mismatch notice must always be an exact duplicate of the taxpayer copy. (See IRM 3.14.2.4.2.1, Central Authorization File (CAF) Mismatch–Code 01.)

  6. The date printed on the notice is the 23C Date (current cycle assessment date). This date is rarely changed.

    Exception:

    If you delete a refund to increase tax, change the notice date to match the 23C Date of the adjustment. Use the posting cycle calendar in Document 6209 to decide the 23C Date for the posting of the adjustment. In all other cases do not change the notice date. The 23C Date decides the assessments of penalty and interest, collection notices, and TDA issuances. The computer will not recognize a notice date change. The computer does recognize a subsequent tax assessment, which starts a new assessment time period.

  7. Sometimes a stuffer is included in the envelope with a notice to give additional information to the taxpayer. These stuffers are identified by an alpha code at the top of the notice.

    1. The most common stuffer is the 746 which explains Math Error Appeal Rights. It is identified by an "A" at the top of the notice. This code must be present on a retyped notice if it was on the original notice. It must also be on the notice if a tax increase above the taxpayer’s figures was input in Blocking Series 77 or 78 DLN, using CC REQ54. (See IRM 3.14.2.4.24.5.1, Blocking Series.)

    2. If other codes were on the original notice, include them on the retyped notice.

    3. If a multi-page notice is retyped, use local procedures to correct the erroneous information on the notice.

3.14.2.7.23.5  (01-01-2013)
Labeling Notices

  1. Under certain conditions, a label may be used to update information on the notice or to notify the taxpayer to expect additional account actions. Select the computer generated label from the list that will be reflected from the drop down menu whenever you select the disposition L for Label to apply to any notice that requires additional information to be conveyed to the taxpayer.

  2. There will be fill-in information that must be completed using the correct form number and period ending in Month, Day, and Year format.

    Example:

    Form 1120 for tax period ending Dec. 31, 2011.

  3. Use caution when applying a label for a pending (AP, PN, RS, UP, CU, or TP) credit transaction.

    1. A TC 650/660 on the NRPS contents page that overpays the notice module and is dated later than the last day of the tax period may not post to the notice module due to computer rollover analysis. (A TC 650/660 .00 will be displayed on BMFOLT to indicate a credit has rolled when attempting to post to the module.) If the payment overpays the module, but does not appear on BMFOLT as a posted payment, decide if the payment will post. If the payment will post to the notice module, label the notice. If unable to decide, do not use a label.

    2. If the transaction is unpostable, do not apply a label if unable to decide if the transaction will post.

    3. If the transaction is RS, TP, or UP, CC INTST will not reflect the transaction correctly. If the RS or TP transaction has posted on BMFOLT, penalty recomputation will be reflected. Do the following if the correct balance on the module is required: Use CC COMPA to update the TXMOD module with the current account information; then input CC INTST to obtain the correct balance. If the transaction is UP or not reflected on BMFOLT, use CC COMPA to decide correct FTP penalty and interest amount.

      Reminder:

      The correct module balance is not reflected on CC BMFOLT since grace is not taken into consideration.

  4. Do not label a notice when the balance due is being increased. Always retype the notice.

    Note:

    Do not void CP 161 if fully paid by credits that offset (TC 706) into the notice cycle. Do not label if the offset does not pay the module in full. A CP 138 will generate from the losing module.

  5. Do not retype the notice if there is a change to the name or address on the notice and the other information is correct. Resolve the issue as follows:

    1. Update the entity on IDRS with CC ENREQ.

    2. Select Disposition E and correct the name and/or address information on the OLNR Entity display screen.

  6. The labels shown in this text have been approved for the situations listed. A label must not be used for any other situation unless the label conveys the correct information to the taxpayer.

  7. Campus management has the option of requiring a notice to be retyped instead of labeled.

  8. Headquarters must approve any additional labels before use.

  9. The following labels are approved for use:

    Figure 3.14.2-9
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    Label #1

    Figure 3.14.2-10
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    Please click here for the text description of the image.

    Figure 3.14.2-11
    Labels #3 and 4
    Label #3
    English:
    WE APPLIED A CREDIT OF $_________ TO YOUR ACCOUNT. YOUR NEW BALANCE IS $ __________.
    Spanish:
    NOSOTROS LE APLICAMOS A SU CUENTA UN CRDITO DE $___________. SU NUEVO BALANCE ES DE $______________.
    USE WHEN ALL THE FOLLOWING APPLY:

    • The notice module is in balance due status.

    • Payments or credits are pending (AP, PN, UP, CU, TP or RS) but are not showing on the notice.

    • The resulting balance on the notice module will be a reduced balance due.

    • Failure to File (TC 166), Failure to Deposit (TC 186), Failure to Pay (TC 276), or Estimated Tax (TC 176) penalty will NOT recompute.

    • A subsequent notice will NOT generate.

    Note:

    Use CC INTST or CC COMPA to compute the new balance.

    Caution:

    VOID a settlement notice if the resulting balance due will be less than ≡ ≡ ≡ with no math error or credit discrepancy.

    Reminder:

    Do not void an adjustment notice when the balance due will be less than ≡ ≡ ≡ ≡ , If the balance is less than ≡ ≡ ≡ ≡ ≡ , enter .00 on the label as the amount due

    .
    Label #4
    English:
    WE APPLIED A CREDIT OF $_________ TO YOUR
    ACCOUNT. YOUR ACCOUNT HAS A CREDIT OF $ __________.
     
    Spanish:
    NOSOTROS LE APLICAMOS A SU CUENTA UN CRÉDITO DE $___________. SU CUENTA TIENE UN CRÉDITO DE $ ___________.
     
    USE WHEN ALL THE FOLLOWING APPLY:

    • The notice module is in balance due status or an overpayment is not refunding.

    • Payments or credits are pending (AP, PN, UP, CU, TP or RS) but are not showing on the notice module.

    • The resulting balance on the notice module will be an overpayment.

    • Failure to File (TC 166), Failure to Deposit (TC 186), Failure to Pay (TC 276), or Estimated Tax (TC 176) penalties will NOT recompute.

    • A subsequent notice will NOT generate.
    Reminder: Use label 6 if Notice module is refunding.

    Caution:

    If the notice is CP 161, void the notice if the resulting overpayment returns to the taxpayer's figures.

     

    Figure 3.14.2-12
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    Labels #5 and 6

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    Label #7

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    Labels #8 and 9

    Figure 3.14.2-15
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    Labels #10 and 11

    Figure 3.14.2-16
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    Labels #12 and 13

    Figure 3.14.2-17
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    Labels #14 and 15

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    Labels #16 and 17

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    Label # 18

    Figure 3.14.2-20
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    Label #19

    Figure 3.14.2-21
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    Labels #20 and #21

    Figure 3.14.2-22
    Label # 22
    English version below:
    The overpayment on your account is a credit that was not claimed. If you do not owe other taxes, we will refund the overpayment amount in 3 to 4 weeks.
     
    Spanish version below:
    El pago en exceso en su cuenta es un credito que no se reclamo, si usted no debe ostros impuestos, le reembolsaremos el pago en exceso dentro de tres a cuatro.
     
    Use when all the following apply:
            The notice is CP 267 or CP 268.
            The unclaimed credit on the notice module could be any type payment.
           CC REQ54, 290 .00, Hold Code 3, Priority Code 4 is input to release the credit for refund.

    Figure 3.14.2-23
    Label # 23
    English Version Below:
    We recently received a payment of $________. This notice doesn’t reflect that payment in your balances. For updated account information, you may contact the above phone number.
    Spanish Version Below:
    Nosotros recibimos recientemente un pago de $__ __. Este pago no se incluye en los saldos indicados en este aviso. Para información actualizada sobre su cuenta, usted puede llamar al número de teléfono que aparece en la parte de arriba.
    Restricted label to be use only after the following conditions have been met::

    • The TE Lead has approved it's use on a notice.

    • Applied to notices that have a resequenced or unposted pending payment(s) on the account.

    • The interest is not accurate.

    • To be used when there are no penalties that will re-compute, and another notice will generate.

3.14.2.7.23.6  (01-01-2013)
ENTITY

  1. The Entity disposition is to be used when entity information is the only change required on the notice. It is not to be used in conjunction with any other notice disposition.

  2. Entity changes include name and address corrections, as well as manual intervention (CAF/RAF Mismatches) changes.

    Note:

    BMF Retypes Phase II has been implemented, therefore Entity Disposition can also be used, and selected for associated notices.

3.14.2.7.23.7  (01-01-2013)
HOLD

  1. The Hold Disposition is used when you do not have complete information to determine the true Disposition of your notice. The IRM has instructions on when to use this disposition. When inputting a disposition of H you must enter a STAUP for 9 weeks. When releasing the hold please keep in mind to reduce the STAUP to the appropriate number of weeks so that a 50X notice is mailed to the taxpayer in the appropriate time-frame. Please refer to IRM 3.14.2.4.26 for instructions on how to use Command Code STAUP.

    Example:

    Use this disposition if you feel that the return has posted to the incorrect module and you do not receive the requested return before cycle closeout. This is not all inclusive any notice can be held if the tax examiner feels more research is necessary to ensure a correct notice is sent to the taxpayer.

  2. When an error is identified by quality they must input an H Disposition to ensure a correct notice is sent to the taxpayer. If necessary, the tax examiner will correct the OLNR application and issue a corrected notice

3.14.2.7.24  (01-01-2013)
Federal Payment Levy Program (FPLP)

  1. The BMF Federal Payment Levy Program (FPLP) notices are as follows:

    • CP 297

    • CP 297A

    • CP 298

  2. FPLP notices print every cycle. The notices generate with a Monday date two weeks in advance.

  3. The notices are mailed from the Correspondence Production Services (CPS) sites(s). CP 297 is mailed certified, return receipt. CP 297A is mailed certified, but no return receipt. CP 298 is sent via regular (first class) mail. When a CP 297 AND 297A are created, a TC 971 AC 069 (which carries the notice date) is posted to the Master File (MF) for each tax module included on the notice. When a CP 298 is created, a TC 971 AC 169 is posted to the MF for each tax module on the notice. CP 297 and CP 298 are systemically selected through automated NRPS processing. Selection lists do not generate at the CPS site(s). No NRPS processing (systemic or manual) is performed for CP 297A.

    • In the event of an unforeseen problem with timely mailing of notices or the automation process, which might result in the need for manual review, please refer to IRM 3.14.1.6.23.2 for more detailed instructions.

3.14.2.8  (01-01-2013)
International Overview

  1. This section of the Internal Revenue Manual (IRM) contains specific instructions for reviewing International returns and CP notices.

  2. This is a supplement to IRM 3.14.2, BMF Notice Review, it must be utilized when reviewing International notices.

3.14.2.8.1  (01-01-2013)
Related References

  1. Publications relating to International issues can be used as technical reference material. Following is a list of the most common publications used.

    • Pub. 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad

    • Pub. 80, Circular SS, Federal Tax Guide for Employers in the U.S. Virgin Islands, Guam, American Samoa and the Commonwealth of the Northern Marianna Islands

    • Pub. 179, Circular PR, Guia Contributiva Federal Para Patronos Puertorriquenos (Federal Tax Guide for Employers in Puerto Rico)

    • Pub. 513, Tax Information for Visitors to the United States

    • Pub. 514, Foreign Tax Credit for Individuals

    • Pub. 515, Withholding of Tax on Non Resident Aliens and Foreign Corporations

    • Pub. 570, Tax Guide for Individuals with Income from U.S. Possessions

    • Pub. 593, Tax Highlights for U.S. Citizens and Residents Going Abroad

    • Pub. 597, Information on the United States-Canada Income Tax Treaty

    • Pub. 850, English-Spanish Glossary of Words and Phrases Used in Publications Issued by the Internal Revenue Service

  2. The following manuals can give additional information on International returns:

    • See IRM 3.12.13, Employment Tax Returns

    • See IRM 3.12.16, Corporation Income Tax Returns

    • See IRM 3.12.106, Estate and Gift Tax Returns

    • See IRM 21.8.1, International DP Adjustments

    • See IRM 3.21.25, Miscellaneous Tax Returns

  3. In addition to these publications, some general information publications are also printed in Spanish for the convenience of taxpayers. These can be identified in Publication 900 by an S after the number.

3.14.2.8.2  (01-01-2013)
Program Responsibility

  1. International related documents are processed exclusively in the Ogden Submission Processing Center (OSPC) who has the responsibility for reviewing notices and transcripts.

  2. Service officials and management must communicate security standards contained in IRM 1.4.6, Manager's Security Handbook, and IRM 2.1.10, Information Systems Security, to subordinate employees and establish methods to enforce them.

  3. Employees are responsible for taking required precautions in providing security for documents, information and property which they handle in performing official duties.

3.14.2.8.3  (01-01-2013)
Notice Review Processing System

  1. The Notice Review Processing System (NRPS) selects settlement notices, adjustment notices and refund transcripts for review by analyzing data from various sources including but not limited to CP notice records and entity and tax modules, etc.

3.14.2.8.4  (01-01-2013)
On-Line Notice Review

  1. The On-Line Notice Review system (OLNR) allows TEs to review on-line those notices selected by NRPS then decide the disposition and issue a retype notice, if necessary.

  2. Actual paper notices are printed after all scheduled work in the NRPS batches are completed.

  3. OLNR automatically generates a Notice Disposition Report.

  4. Refer to IRM 3.14.2, BMF Notice Review, for instructions about On-Line Notice Review (OLNR) process.

3.14.2.9  (01-01-2013)
International Documents

  1. An international document is:

    • Return with a foreign address

    • Return with income from a foreign source

3.14.2.9.1  (01-01-2013)
BMF International Tax Returns

  1. International Employment Tax Returns include but not limited to:

    • 940PR, Employers' Annual Federal Unemployment Tax - Puerto Rico (MFT 10).

    • 941PR, Employers' Quarterly Federal Tax Return _ Puerto Rico (MFT 01).

    • 941SS, Employers' Quarterly Federal Tax Return - Virgin Islands, Guam, American Samoa, Commonwealth of Northern Marianna Islands (MFT 01).

    • 943PR, Employers' Annual Tax Return for Agricultural Employees Puerto Rico (MFT 11).

    • 944PR, Employers' Annual Federal Tax Return - Puerto Rico (MFT 14).

    • 944SS, Employers' Annual Federal Tax Return - Virgin Islands, Guam, American Samoa, Commonwealth of Northern Marianna Islands (MFT 14).

    Note:

    Form 941C is obsolete and no longer available in current tax forms. It cannot be used to correct errors discovered after December 31, 2008, on previously filed Forms 941SS, and 944SS. To correct errors on previously filed Forms 941SS, and 944SS, use the corresponding X forms: Form 941X, and 944X. Form 941C, Supporting Statement To Correct Information (Rev. October 2006), is no longer available in current Forms and Instructions on IRS.gov. If you want to view the form, it can be accessed in Previous years for 2007.

  2. International Corporation Tax Returns include but not limited to:

    • Form 1120 with Forms 1118, 5712, 5712–A, 5735, 5471, 5472 and Schedule P.

    • Form 1120-F, U.S. Tax Return of a Foreign Corporation (MFT 02).

    • Forms 1120-FSC and Form 8279 (FSC election), U.S. Income Tax Return of a Foreign Sales Corporation (MFT 02).

  3. Foreign Withholding Tax Returns include but not limited to:

    • Form 1042, Annual Withholding Tax Return for U.S. Income for Foreign Persons (MFT 12).

  4. Foreign Estate Tax Returns:

    • Form 706-NA, United States Estate (and Generation Skipping Transfer) Tax Return (MFT 52).

3.14.2.9.2  (01-01-2013)
General Information

  1. Basic review of international returns varies slightly from domestic. Documents are compared to the computer generated documents, computer paragraph notice and information contained within OLNR system.

  2. Compare the Document Locator Number (DLN) on the return with the DLN on NRPS package.

  3. Compare the name and address on the tax return to the name on the notice or entity part of the refund transcript.

  4. When calculating restricted interest on foreign BMF tax accounts, please refer to the following: IRM 3.14.2.4.22.9, Computing Normal and Restricted Interest

3.14.2.9.3  (01-01-2013)
Extension of Time to File International Returns

  1. For taxable years ending after July 31, 1990, filing deadlines which apply to Non Resident aliens and foreign corporations engaged in a U.S. trade or business or had a permanent establishment are listed below.

    1. Foreign corporations must follow the filing procedures for Form 1120-F and have 18 months to file before losing deductions or credits.

    2. Non Resident aliens and foreign corporations unsure about their status may file protective claims no later than the deadline.

    3. The extension of time to file only applies to the calculation of penalties. Interest accrues from the due date of the return.

3.14.2.9.4  (01-01-2013)
Review for Payments

  1. Missing credits occur when payments posted to the module are less than amount claimed. The credit may have posted to another module or payment was not made. For specific instructions concerning missing credits refer to IRM 3.14.2.4.12.3, Credit Discrepancy.

  2. Excess credits occur when more credits are posted to the module than the amount claimed on the tax return. The credit may belong to another module or payment not included in the preparation of return. For specific instructions concerning excess credits, refer to IRM 3.14.2.4.12.2 through (9).

  3. If Form 3244, Subsequent Payment Voucher, is attached to the return and payment has not posted, research IDRS for:

    • XSINQ and URINQ for payments.

    • TEP, GUF, PN, or UP payments.

    • Invalid conditions (another name control or number).

  4. If a subsequent or missing payment completely pays liability, input command code STAUP with history item and void the notice.

3.14.2.9.5  (01-01-2013)
Manual Intervention List

  1. If a notice does not meet NRPS criteria but requires subsequent review, a Manual Intervention List generates in notice sequence order.

  2. Refer to IRM 3.14.2.4.2, for complete procedures on Manual Intervention.

3.14.2.9.6  (01-01-2013)
Math Error Notices

  1. Use OLNR and IDRS tax module data to decide disposition of notice.

  2. General guidelines are:

    1. If notice is incorrect; label or retype the notice.

    2. If the taxpayer does not need to be contacted, void the notice.

    3. If the notice is correct, print the notice.

3.14.2.9.7  (01-01-2013)
Overpayment Notices

  1. If the return is not provided in NRPS package, try to resolve without document; however, if package shows charged out to another area, it may be necessary to secure a copy.

  2. Verify name, address, taxpayer identification number (TIN), tax period and DLN as shown on the return with information contained in the notice.

    1. Route major entity changes to Entity Control for necessary action using local control procedures.

    2. If correction of the tax period involves reprocessing the document to the correct period.

    3. A DLN mismatch may simply be a wrong pull or it could indicate a slipped or mixed block.

    Math Error - Review math error explanation and decide if error in the tax computation or credits. Verify the tax from point of error and review math error explanation for accuracy.

    If Then
    math error message incorrect retype for correct error message.
    incorrect change to return. adjust tax and prepare correct notice. Intercept refund if necessary.
    incorrect notice and original figures correct void or retype the notice as appropriate.

  3. Deposit Error - decide actual excess amount in the module which must be the same as credit balance on the notice.

    1. Add any assessed penalty or interest amount(s) to the module overpayment (TC 846).

    2. Deduct any overpayment claimed by the taxpayer from the above amount. (An overpayment is the result of credits claimed minus tax per return.)

    3. Use NRPS module data to decide which credit(s) will create the excess.

    4. Allow any unclaimed TC 716 to refund.

    5. Review for overpayment to be applied to the next tax period. If TC 836 has not posted, intercept the refund.

    6. If comparison of excess FTD credit(s) same as date/amount with the other credits in the module and doesn't belong on any other module, allow the excess to refund.

    7. Review the OLNR System data for any PN, AP, UP, RS, etc. transactions which could place in debit status. Intercept the refund if necessary.

  4. Notice Resolution - Deposit Error (Credit Discrepancy Only) – Penalties (01, 03, 07 or 11), a recomputed adjustment notice (CP 210/220, (English version) or CP 910 / CP 920 (Spanish version) will generate.

    If Then
    Module is settled or overpaid Label or void notice as necessary. Use local control file to intercept and void CP 210 / CP 220 or CP 910 / CP 920.
    Module is a balance due Label or retype notice. Use local control file to intercept and void CP 210 / CP 220 or CP 910 / CP 920.

  5. Notice Resolution - When penalties will not recompute; adjustment notice will not generate.

    If module Then
    zero balance or overpaid void the notice.
    remains balance due retype the notice.

  6. Notice Resolution - Adjustment to tax only (Math Error Cases) and accepting original figures as submitted.

    1. If module Then
      zero balance or overpaid void notice, use appropriate hold code.
      remains balance due retype notice, use appropriate hold code.

  7. If making an adjustment and not returning to original figures, retype the notice and use appropriate hold code.

  8. Math Error and Credit Discrepancy - Label the notice.

  9. Input a History Item on IDRS with appropriate STAUP to delay issuance of an erroneous IDRS notice.

3.14.2.9.8  (01-01-2013)
Balance Due Notices

  1. The NRPS selection key is used as a guideline in reviewing a case. If the document not provided in NRPS package, try to resolve without document; however, if charged out to another area, it may be necessary secure a copy.

  2. Compare name, address, tax period, DLN with return information on the notice.

    1. Route major entity changes to Entity Control for necessary action using local control procedures.

    2. If correction involves reprocessing to correct period.

    3. A DLN mismatch may simply be a wrong pull or it could indicate a slipped or mixed block. See IRM 3.14.2.4.9.2, Slipped Blocks and Mixed-Data Blocks, for processing instructions for slipped or mixed blocks.

  3. Math Error - Review math error explanation to decide if error in tax computation or credits. Verify from point of error and decide if correct math error explanation.

  4. If a deposit/credit discrepancy, research for

    • PN, CU, UP, RS etc. credits that may resolve credit discrepancy.

    • Missing credits posted on other modules.

    • Any indication of another EIN.

  5. Notice Resolution - decide if an adjustment to tax (TC 29X) is made.

    If Then
    original figures correct and module will become zero balance or overpaid void the notice.
    accepting original figures and results in a balance due ≡ ≡ ≡ ≡ ≡ ≡ ≡ retype to CP 161, (English version), or, if applicable, CP 861, (Spanish version).
    results are different than original figures retype notice.

  6. If applying credits to a module and accepting original submission (taxpayers figures) decide the following:

    1. If Then
      module has a zero balance or overpaid void notice.
      module shows an FTD penalty≡ ≡ ≡ ≡ ≡ ≡ ≡ and return filed prior to 1/1/2001. void notice.
      module shows an FTD penalty ≡ ≡ ≡ ≡ ≡ and return filed after 1/1/2001 void notice.
      Module remains balance due Label or retype the notice. Label notice if the 01, 03, 07, or 11 penalties will recompute. (BMF Label #2 with money amount. If notice in Spanish, indicate.)
      Module results in different figures than originally submitted label or retype the notice. If no penalties will recompute, retype the notice.

  7. When changing a notice, input a history item and CC STAUP with appropriate hold code to avoid an incorrect IDRS notice and prevent erroneous refund of credits.

3.14.2.9.9  (01-01-2013)
Labeling Notices

  1. Notices are the most common contact the taxpayers receive from the Internal Revenue Service; therefore, the image of the Service is reflected in these notices.

  2. Under certain circumstances, an explanation of pending actions may be added by affixing a label to the notice.

  3. To ensure a Spanish label is affixed to the notice, write the word Spanish in the directive.

  4. Do not label a notice when increasing the amount of the balance due. Always retype the notice.

3.14.2.9.10  (01-01-2013)
Foreign Investment in Real Property Tax Act (FIRPTA)

  1. The Foreign Investment in Real Property Tax Act (FIRPTA) was amended by the Deficit Reduction Act of 1984. This amendment added Section 1445 to Chapter 3, Subchapter A, of the Internal Revenue Code of 1954. Section 1445 requires the withholding of tax on dispositions of certain U.S. Real Property Interests.

  2. Before FIRPTA, Non Resident aliens and foreign corporations were generally exempt from income tax on capital gains to the extent that they were not effectively connected with a U.S. trade or business. Refer to IRM 3.21.25, International Returns and Document Analysis, Miscellaneous Returns.

  3. IRC 897 redefined capital gains (or losses) from the disposition of U.S. real property and treated them as income effectively connected with a U.S. trade or business. Consequently, income tax is imposed on the net gains at marginal income tax rates. FIRPTA also imposed withholding tax provisions to ensure the collection of tax.

  4. Non Resident aliens are subject to a minimum tax on FIRPTA transactions. (This provision is not to be confused with the Alternative Minimum Tax.) The minimum tax differs from the Alternative Minimum Tax (AMT) in that the minimum tax for individuals is the lesser of Alternative Minimum Taxable Income (AMTI) or the net U.S. real property gain. (IRC 897(a)(2)(A).)

    Note:

    The minimum tax calculation does not give for an AMTI exemption amount based on the filing status of the individual.

  5. Verify Form 8288-A credit indicator sheet for credit claimed. Only one box must be checked. If not attached, forward to the FIRPTA unit.

  6. Review the master file account because of the possibility of an erroneous duplicate credit for the same payment.

    Note:

    Form 8288 can be filed with an EIN, SSN or ITIN. If the return was filed with an SSN, or ITIN use File Source Code "V" for valid or W for invalid. It may be necessary to research under both the valid and invalid segments for an erroneous duplicate credit. There should never be any generated refunds on Form 8288 (MFT 17).

3.14.2.9.11  (01-01-2013)
Withholding Tax on Foreign Partners

  1. Forms 8804, 8805 and 8813 are filed to report and pay Section 1446 withholding tax based on effectively connected taxable income allocated to foreign partners without regard to distribution.

  2. Form 8804, Annual Return for Partnership Withholding Tax (Section 1446), shows the total withholding of tax liability of the partnership. For more information concerning Form 8804, please refer to IRM 3.21.15, International Returns & Document Analysis Foreign Partnership Withholding.

  3. Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, shows amount of effectively connected taxable income and withholding tax allocated to each foreign partner.

  4. Form 8805 must be attached to the foreign partners tax return for proper credit.

  5. Review for the credit as a TC 766 allowance and if necessary make the necessary adjustment.

  6. Any U.S. person erroneously made subject to the withholding tax would also receive Form 8805 from a partnership and should attach to Form 1040 or 1120 for credit substantiation.

  7. Form 8813, Section 1446 Payments, is used to transmit withholding tax payments from partnerships.

3.14.2.9.12  (01-01-2013)
Refund Transcripts

  1. Refund transcripts are reviewed to decide if overpayment will refund.

  2. Selected transcripts are reviewed by key code.

  3. When the return is included in the NRPS package or is subsequently associated with the case, all general review procedures IRM 3.14.2 must be completed before reviewing the actual key code criteria.

  4. Use category T or TI for disposition on OLNR system.

3.14.2.9.13  (01-01-2013)
CP Notices

  1. This section contains instruction for various BMF International CP notices.

3.14.2.9.14  (01-01-2013)
CP 801, Form 940PR Balance Due Notice

  1. CP 801 (CP 101) is a balance due notice generated from a math error on Form 940PR, Employers Annual Federal Unemployment (FUTA) Tax Return and written in Spanish.

  2. Form 940PR is a calendar year return filed by an employer to report unemployment tax.

  3. A calendar year return is due January 31st of the year following the end of the tax period.

  4. Four separate payments are required in April, July, October and January.

  5. Compare payment dates and amounts with liabilities shown on the return.

    Note:

    Payments sometimes post to Form 941PR modules

  6. If payment located in another module, move credit to account.

  7. If possibility of another TIN, research all available systems for missing payments.

  8. Review document for attachments/additional information for incomplete processing.

3.14.2.9.15  (01-01-2013)
CP 802, Forms 941PR, 943PR, 944PR, Balance Due Notice

  1. CP 802 (CP 102) is a balance due notice generated from a math error and written in Spanish.

  2. Notice pertains to

    1. Form 941PR, Employers QUARTERLY Federal Tax Return.

    2. Form 943PR, Employers Annual Tax Return for Agricultural Employees.

    3. Form 944PR, Employers ANNUAL Federal Tax Return - (Puerto Rico).

  3. Forms 941PR is a quarterly return due April 30, July 31, October 31, and January 31.

  4. Form 943PR is an annual return due on January 31st.

  5. Form 944PR is an annual return due on January 31st.

  6. If a return is filed late, consider misapplied payments from another tax period.

  7. Compare tax and liability on document with credits/payments on other modules without a TC 150.

  8. Consider the document could have been processed to an incorrect tax period. If necessary, secure original return for verification.

  9. If a credit on a Q- Freeze module is needed, transfer the credit. If Q- Freeze will expire before completion of credit transfer, intercept refund.

    1. Q- Freeze condition expires after 15 cycles.

    2. Intercept refund when TC 846 posts.

    3. Transfer credit with the appropriate posting delay.

    4. Retype or void notice, as necessary.

  10. Check for possible processing errors such as: Federal Insurance Contributions Act (FICA) adjustment on withholding not recognized during processing and created a balance due notice for twice the amount.

3.14.2.9.16  (01-01-2013)
CP 811, Form 940PR, Overpayment Notice

  1. CP 811 (CP 111) is an overpayment notice generated from a math error on Form 940PR Employer's Annual Federal Unemployment Tax (FUTA) Return and written in Spanish.

  2. Compare amount and date with liability section of Form 940PR.

  3. Verify any unclaimed payments/credits (TC 670).

  4. If able to decide correct posting and payment intended for another module, intercept the refund.

  5. If there are any PN, AP, UP, CU, RS, etc. actions which could result in debit status, intercept refund.

  6. If researching to apply excess credits/payments and unable to resolve before refund deletion deadline, intercept the refund.

  7. If unclaimed credit consistent with Form 941PR payments, transfer payment(s) to Form 941PR account.

  8. Use CC NOREF to control the case and intercept the refund.

3.14.2.9.17  (01-01-2013)
CP 812, Form 941PR, 943PR, 944PR, Overpayment

  1. CP 812 (CP 112) is an overpayment notice generated from a math error or deposit error and written in Spanish.

  2. Notice pertains to:

    • Form 941PR, Employers QUARTERLY Federal Tax Return.

    • Form 943PR, Employers Annual Tax Return for Agricultural Employees.

    • Form 944PR, Employers' ANNUAL Federal Tax Return - (Puerto Rico).

  3. If research shows payment (exact amount & date) will post to next period, intercept the refund and transfer credit.

    Note:

    Do not place a module in debit balance.

  4. Verify unclaimed TC 670 payments.

  5. Compare the tax on FICA wages with adjusted total of FICA taxes.

  6. If the difference is the same as TC 716, intercept refund and assess tax because of duplication of credits (Form 941PR).

  7. Compare tax and liability data with credits on other tax periods where no assessment made (TC 150). Document may have posted to incorrect period. If credits agree with notice data, intercept refund and reprocess return.

  8. If NRPS package indicates another EIN, research.

  9. Review other accounts for TC 706 (BMF) for possible offsets.

  10. If TC 826 present in module and action offsets part or all of credit to another module but actually belongs on another tax period, reverse TC 826. Void or re-type offset notice CP 838 (CP 138).

  11. If action(s) will create an additional refund, take necessary action for an appropriate label 5/6.

  12. A CP 812, Q- Freeze indicates Schedule A was checked but Back-up Withholding (BUWH) was not assessed reference IRM 21.5.4, General Math Errors Procedures.

    Note:

    Always use appropriate Hold Code to prevent another notice from generating.

3.14.2.9.18  (01-01-2013)
CP 861, Request for Payment

  1. CP 861 (CP 161) is a non-math error notice telling the taxpayer of a balance due of ≡ ≡ or more and written in Spanish.

  2. The balance may be the result of tax, penalties and/or interest.

  3. Compare entity and tax period with document.

  4. All major entity problems must be routed to Entity Control function with a copy of notice and document using local control procedures.

  5. If return processed to wrong tax period, take necessary action to adjust module and reprocess document. Refer to 3.15.128, International Adjustments.

  6. Research modules for pending AP, PN, TP, RS, UP, CU credit in the NRPS package. If the credit overpays the module and is not pending on TXMOD or posted on BMFOLT, decide if the payment will post to the module.

  7. If return shows no tax credits but module need credits for settlement; OLNR system will give information on credits posted to another tax module and/or pending, resequencing or unpostable transactions.

  8. If credits posted to another tax module; transfer credits, void , retype or label the notice as necessary.

  9. VOID the notice if penalty and interest will be fully abate after applying credits.

  10. If payments are shown on NRPS appended data sheet but did not post, input CC STAUP for 10 cycles to avoid issuance of erroneous notice.

  11. If applied credit will not settle the account and penalty & interest will not recompute and it's a balance due, then apply label 3.

  12. Label notice if penalties are present and timely credits applied. Penalties will recompute and subsequently generate another notice.

  13. If research shows unpostable payment, input CC STAUP and notify Unpostable Unit by using CC UPASZ to post the credit.

  14. If return shows an overpayment, review for E-credit elect, S-refund or F-final.

  15. If research shows pending credits or credits applied from another module with an ES Penalty, recompute penalty.

  16. If recomputation shows a decrease in the ES Penalty, abate penalty and retype the notice.

  17. Timely filed extensions with or without accompanying credits may be posted to another period or TIN.

  18. If research shows extension of time to file was incorrectly posted to another module, secure the actual document to verify. If necessary, reprocess extension document and transfer any credits made on incorrect module.

  19. If module shows a TC 976, take the necessary action to label notice.

  20. Do not abate penalty if delinquent code Disaster Recovery Code (DRC) or Secured Returns Code (SRC) or TDA status within the last 12 months.

  21. If applied credits will settle the account, then do not void CP 861 because it is fully paid by credit that offset (TC 706) into the notice cycle. Do not label if the offset doesn't pay the module in full. A CP 838 will generate from the losing module.

    Note:

    This is the only situation when the CP 861 will not be voided.

3.14.2.9.19  (01-01-2013)
CP 910 & CP 920, Adjustment Notices (CP 210 & CP 220)

  1. CP 910 and CP 920 (CP 210 & CP 220) generate as a result of an adjustment to an International BMF tax account.

  2. CP 910 generates for a decrease in tax liability.

  3. CP 910 notice also generates when a transaction code 29X/30X (document codes 54/47) or FTD bad check penalty (document codes 24/97 only) posts, unless the notice module is in status 14.

  4. CP 910 can either be a balance due, even balance or an overpayment notice if the account was in a prior TDA status.

  5. CP 920 notice is a balance due notice and generates where there has been an increase in tax liability.

  6. If documents available, review for accuracy of adjustment action. Review appended data sheet and tax module for changes in notice module. Check TEP, GUF, and Unpostables for possible misapplied credits or debits.

    If Then
    applied credit(s) will result in recomputation of penalty or interest use BMF Label #2 (in Spanish) to explain transfer of payment/credit and possible subsequent notice
    applied credit(s) will not result in a recomputation of penalty and interest retype notice based on current results of CC INTST for correct balance due.

  7. Check for pending transactions e.g., TC 29X or TC 30X which will generate another notice.

  8. If research shows an additional notice from TC 29X/30X select label to explain adjustment with another notice send under separate cover (BMF Label #1 – Spanish).

  9. If notice indicates an overpayment (TC 846), research for pending debit transactions or outstanding balances and if found, intercept the refund.

  10. If notice for abatement of penalties and original notice voided (CP 910 / CP 920), void only if original was recent and immediately preceding current CP 910 / CP 920.

  11. If module shows another function has control of the module, forward the notice to the tax technician.

  12. If module has an open audit indicator (TC 420), research using CC AMDISA for possible referral to Examination Branch.

  13. Refer to IRM 3.14.1, IMF Notice Review or IRM 3.14.2.4.10, BMF Notice Review for Freeze Codes.

  14. If module shows closed audit indicator (TC 421), DO NOT INTERCEPT refund and print the notice.

3.14.2.9.20  (01-01-2013)
Forms 1042 / Form 1042S Withholding on U.S. Source Income

  1. Form 1042 is the annual taxable return filed by withholding agents to report tax withheld on U.S. source income paid to certain Non Resident Alien aliens, foreign partnerships and corporations.

3.14.2.9.21  (01-01-2013)
Form 1042 Filing Requirements

  1. Form 1042 is filed by individuals, corporations, and partnerships having control, receipt custody, disposal, or payment of interest, dividends, rent, salaries, etc., to the extent that such items constitute gross income from U.S. sources for Non Resident Alien individuals, foreign partnerships, or foreign corporations. Form 1042 also serves as a transmittal.

  2. Form 1042 required on or before March 15th of each year.

  3. Forms 1042 are filed whether or not any tax was withheld or required to be withheld (i.e., income was exempt from withholding).

  4. The dollar amount of withheld taxes decides frequency of deposits.

    If Then
    undeposited taxes of $2,000 or more at the end of any quarter-monthly period. deposit within three banking days after the end of the quarter-monthly period. (Quarter-monthly periods end on the 7th, 15th, 22nd and last day of the month.)
    undeposited taxes of $200 or more but less than $2,000 at the end of the month. deposit by the 15th day of the following month.
    undeposited taxes of less than $200 at the end of the year deposit via FTD or remit with Form 1042 on or before March 15 in the following year of tax year.

3.14.2.9.22  (01-01-2013)
Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons

  1. Form 1042 is used to transmit information items (Form 1042-S) and report withheld taxes.

  2. This form is similar to Form 945, Payer's Annual Tax Return.

  3. See IRM 3.21.110 for Chapter Three Withholding Returns - 1042, IRM 3.22.110 for Code and Edit and Error Resolution for withholding returns.

  4. The statute period of assessment expires 3 years from the due date or received date of the return whichever is later.

3.14.2.9.23  (01-01-2013)
Reviewing Notices for Form 1042

  1. Verify entity for a possible address change.

  2. Verify all credits including credit elect and excess FTD payments.

  3. Compare notice with IDRS with emphasis on CP/TRNS 193, TC 976, A- Freeze for subsequent actions.

  4. If necessary, input a CC STAUP for 15 cycles and forward to Accounts Management using local control procedures.

  5. If an address was corrected and there is an overpayment which will be refunded, intercept refund and prepare a manual refund.

    1. If Then
      withholding agent located within the U.S. Form 1042 processed with File Location Code (FLC) 29.
      withholding agent located outside of the U.S. FLC is 60.
      withholding agent located in U.S. possessions or, territories or Puerto Rico FLC is 78.
      only action is to change location code Do not intercept the refund.

      Note:

      When adjusting BMF international tax accounts using CC REQ54, or transferring credits using CC ADD24 or ADD34 or ADD48, input a filing location code (FLC) of 60 or 78 according to the primary location code shown on TXMOD or ENMOD.

  6. Retype notice for correct address, location code and taxpayer's account.

  7. Research for missing payments.

  8. If telephone number unavailable, use Call your nearest IRS office when retyping the notice.

  9. Ensure bottom of notice reflect correct Area Office/Service Center.

  10. Q Transcript Review - Input TC 570 on modules reflecting a Q to prevent incorrect notices and/or erroneous refunds.

3.14.2.9.24  (01-01-2013)
CP 107, Balance Due Form 1042

  1. CP 107 is a balance due notice generated from a math error.

  2. Validate error with a math verification.

  3. If the taxpayer's original figures are correct on his return, then adjust the taxpayer's account to reflect those original figures. The notice can be voided.

3.14.2.9.25  (01-01-2013)
CP 117, Overpayment Form 1042

  1. A CP 117 is a overpayment notice generated from a refund.

  2. Validate error with a math verification.

  3. If the taxpayer's original figures are correct on his return, then adjust the taxpayer's account to reflect those original figures. The notice can be voided..

3.14.2.9.26  (01-01-2013)
Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return

  1. The Tax Reform Act of 1976 requires decedents personal representative to file Form 706-NA for the estate of a Non Resident Alien (not a citizen of the United States).

  2. This rule also applies if part of the gross estate (as defined by the statute) situated in the U.S. exceeded $60,000 at the date of death reduced by:

    1. The amount of adjusted taxable gifts within the meaning of Section 2001(b) made by the decedent after December 31, 1976; and,

    2. The aggregate amount allowed as a specific exemption under Section 2521 about gifts made by the decedent after September 8, 1976.

    Note:

    Before December 31, 1976, Form 706-NA was filed for the estate of a Non Resident Alien (not a citizen of the United States) whose gross estate situated in the U.S. exceeded a value of $30,000 at the date of death.

  3. Form 706-NA is due 9 Months after the date of death.

  4. Under Delegation Order 116, Service Center Directors can approve extensions of time for filing. It may be granted even though an application is made later than nine months from the date of death. However, unless the personal representative is abroad, the extended due date for filing the estate tax return may not be later than 15 months from the date of the decedents death (Sec. 20.6081–1(e) of the Regulations.)

3.14.2.9.27  (01-01-2013)
Form 1120-F, U.S. Income Tax Return of a Foreign Corporation

  1. Every foreign corporation must file a Form 1120-F or 1120-FSC if the corporation:

    1. Engages in a trade or business in the U.S. during any time within the taxable year.

    2. Has income from U.S. sources which is non effectively connected with the operation of a trade or business within the U.S.

    3. Has effectively connected income with a U.S. trade or business.

    4. Has overpaid U.S. income tax and is requesting a refund.

  2. Whether or not a foreign corporation is engaged in a U.S. trade or business, the gross amount of income is subject to 30% or lower tax treaty rate.

  3. Deductions are not allowed against non effectively connected income within the operation of a trade or business within the U.S.

3.14.2.9.28  (01-01-2013)
Filing Requirements

  1. The filing requirement depends on whether there is an office or place of business in United States.

  2. The return due date is decided as follows:

    If Then
    foreign corporation has an office or place of business within the U.S. must file by the 15th day of the 3rd month following the tax year.
    foreign corporation does not have an office or place of business within the U.S. must file on or before the 15th day of the 6th month following the tax year.

3.14.2.9.29  (01-01-2013)
Payment of Tax Due

  1. The payment of tax depends on the amount of estimated tax due.

    1. Estimated tax payments are due if tax liability will be $500 or more.

    2. If liability less than $500, payment due at the time the return is due.

  2. Payment of tax depends upon whether or not the corporation has an office or place of business in the United States.

    1. A foreign corporation that maintains an office or place of business in the U.S. pays all tax liability by the 15th of the 3rd month following the tax year.

    2. A foreign corporation that does not maintain an office of place of business in the U.S. must pay all their tax liability by the 15th day of the 6th month following the tax year.

  3. Payments are made directly to the Service and are not governed by depository requirements.

3.14.2.9.30  (01-01-2013)
Refundable Credits

  1. Refundable credits claimed on Form 1120-F are shown on lines 5a through 5i.

    1. FIRPTA credit on Form 8288-A (requires verification).

    2. Partnerships credits on Form 8805:
      If Form 8805 attached and less than ≡ ≡ ≡ , accept without verification.
      If credit is more than ≡ ≡ ≡ , verify with FIRPTA unit.

    3. Withholding at source on Form 1042 (documentation required).

    4. U.S. income tax withheld (documentation required).

  2. Refundable credits claimed on Form 1120 FSC are shown on lines 2a through 2h.

    1. Withholding at source on Form 1042S. (Research EIN of withholding agent to ensure Form 1042 filed to report at least the amount of credit claimed.)

    2. U.S. Income tax paid (withholding statement must be attached).

    3. Form 1099 (withholding statement must be attached).

3.14.2.9.31  (01-01-2013)
Effectively Connected/Non Effectively Connected Income

  1. Form 1120-F reports a foreign corporation's income, gains, U.S. losses, deductions, credits and to figure it's income tax liability and claim any refunds due.

  2. A foreign corporation can be engaged in a trade or business in the United States with or without having an office or other fixed place of business in the United States.

    1. If the foreign corporation does not have a U.S. office or other fixed place of business, it is only taxed on effectively connected income from U.S. sources.

    2. If foreign corporation has an office or other fixed place of business in the United States, it is taxed on effectively connected U.S. sourced income and other foreign source income.

  3. Income received by foreign corporations engaged in a U.S. trade or business is considered effectively connected and taxed at corporate rates.

  4. Section II of Form 1120-F is used to compute the tax.

  5. Form 1120-F filers are subject to estimated tax payments if anticipated ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Payments will be made using the depository method of payment

3.14.2.9.32  (01-01-2013)
Form 1120-FSC, Income Tax Return of a Foreign Sales Corporation

  1. Before September, 2000, a corporation that elected to be treated as an Foreign Sales Corporation (FSC) or a small FSC must have filed Form 8279 and the election must still be in effect.

  2. No new selection can be made using Form 1120-FSC.

  3. Form 1120-FSC reports income, gains, losses, deductions, credits and respective income tax liability.

  4. FSC must be organized under the laws of certain qualifying foreign countries or possession of the United States excluding Puerto Rico.

  5. Foreign corporations electing FSC status may not claim the benefits of any U.S. tax treaty.

  6. If Schedule J is not complete or controlled group box is not checked, a math error results with increase to 35% tax rate. FSC must give a corrected apportionment plan in order to allow reduced tax rate.

3.14.2.10  (01-01-2013)
Replies to Computer Paragraph Notices Overview

  1. This section contains information on the resolution of Computer Paragraph notices replies:

  2. You must always leave a history item to indicate what actions were taken as a result of the reply. History of C-Letter sent on CC ENMOD fulfills that requirement.

  3. Policy Statement P-6-12 requirements are the result of a task force initiated to provide timely and quality responses to taxpayer correspondence. The general guidelines are:

    1. A quality response is an accurate and professional communication which, based on information provided, resolves the taxpayer's issues, requests additional information from the taxpayer, or notifies the taxpayer we have requested information from outside the IRS.

    2. A quality response is timely when initiated within 30 calendar days of the IRS received date.

    3. When a quality response cannot be issued timely, an interim response will be initiated by the 30th calendar day from the IRS received date.

    4. All interim letters should inform the taxpayer when a final response can be expected and should give a name and phone number to contact to resolve additional inquiries.

  4. Exceptions to Action 61 Requirements:

    • Substitute returns

    • Amended returns

    • Reprocess returns

    • Tentative carrybacks

    • Hardcore payment tracers

    • CAF/POA

    • Responses to IRS solicitation for information necessary to secure or complete processing of the tax return

  5. If an original unprocessed return was sent with your correspondence.

    • Write in RED INK the IRS received date in the appropriate area of the return

    • Route to appropriate area, If Form 941 PR or Form 941 SS route to Ogden Service Center and send 86 C Letter.
      Internal Revenue Service
      Ogden Processing Center
      Ogden UT 84201

  6. If Amended Return or similar for any Form 94X PR or Form 94X SS send 86 C-Letter and route to:
    Philadelphia IRS Campus
    BMF International AM Unit
    2970 Market Street
    Philadelphia PA 19106

  7. For the reply work follow the instruction located in IRM 3.14.2.4.6.3.3, address changes can be input by Notice Review employees, however if there is a change to Name Line send copy of change to the Entity Function at your center.

  8. For letters addressed to Power of Attorney's, reference the date of the incoming letter or inquiry and explain fully the action taken, even if it was exactly what the addressee requested.

  9. Your final or interim response must read . . . - This is in response to your inquiry of______. lf the inquiry is a letter that is not dated, use the earliest postmark or metered date. If that date is unknown, use a date three days prior to IRS received date. If the inquiry is in the form of a fax, use the date the fax was transmitted to us. If inquiry is received from a Taxpayer Assistance Center use the IRS received date.

    Exception:

    If the closing action you take will generate a notice with a clear explanation to the taxpayer (for example, CP 210, CP 220, or CP 225, etc.), a final closing letter to the taxpayer is unnecessary.

3.14.2.10.1  (01-01-2013)
Replies to Computer Paragraph Notices

  1. Your actions on additional computer paragraph notices and proper responses to taxpayer inquiries require you to access BMF. Select the appropriate notice below and follow the procedures.

  2. You may be required to carry out procedures concerning any of the following:

    • CP 108, Error on EFTPS (Electronic Federal Tax Payment System) Payment

    • Discrepancies between tax type and established filing requirements

    • An unnecessary reply to CP 108

    • CP 267, Notice of Excess Credit

  3. If replies received have issues that are out of the normal Notice Review reply procedures route the correspondence to the AM ICT and close control base with appropriate actively. Some issues can be Amended Returns, replies with POA Form 2848 or similar attached, hard core payment tracers, reprocess returns, Carrybacks, Reasonable Cause determinations and TPer requests a reply by telephone.. This list is not all inclusive.

    Note:

    For replies with a Form 2848 or similar form attached you must access the appropriate IDRS CC to research if the POA is on file for that module, If on file you can take appropriate action. If not follow the instructions above and route to AM.

  4. You may accept information from any third party even if the provider of the information does not have a written or oral authorization from the taxpayer. Generally, this means any information that can resolve the account issues, but NOT an address change. When finished close with appropriate activity code.

  5. Do not advise any third party who does not have written or oral authorization of any account information or resolution.

  6. If you are routing cases to AM 23 days after the IRS Received Date you must send an interim letter. Use appropriate C-Letter with the 1-800-829-0115 number as the contact. All interim letters should inform the taxpayer when a final response can be expected. Include employee name, employee number and telephone number or 1–800–829–0115 depending on the circumstances.

    Note:

    If you determine that the credit was moved by another area, check to make sure that it was moved to the correct Module. If incorrect move credit to requested account. If transfer was correct notate on correspondence close control.

3.14.2.10.2  (01-01-2013)
OFP

  1. Clerical will use OFP Code 790–10000 and Tax Examiners will use 710–10000.

3.14.2.10.3  (01-01-2013)
Clerical Procedures

  1. The clerical unit will:

    • Batch the work in amounts determined by each center.

    • Open an IDRS Control Base for each reply.

3.14.2.10.4  (01-01-2013)
CP Notices

  1. The following are procedures for the various CP notices in this section:

    1. CP 108 — Error EFTPS Payment

    2. CP 267 Notice of Excess Credit.

  2. When responding to the replies from the Taxpayer, Notice Review may use any of the following C-Letters

    • 86-C Title: Referring Taxpayer Inquiry/Forms to Another Office

    • 285-C Title: Refund/Overpayment Applied to Account

    • 544-C Title: Apology for IRS Error

    • 672-C Title: Payment(s) Located and/or Applied

    • 2644-C Title: Second Interim Response

    • 2645-C Title: Interim Letter

    • 3027-C Title: FTD Payment Applied/Refunded

    • 3064-C Title: IDRS Special Letter

  3. Tax Examiners will not be charged errors for the C-Letter used as long as the reply to the taxpayer is accurate and complete. (Please note that an incorrect letter would leave a bad audit trail for the TE, who may receive a subsequent correspondence from the taxpayer.)

  4. When sending a C-Letter telling the Taxpayer that a refund has been issued or they are expecting one, you must alert them of the total refund including interest and state on the letter that the refund does include interest in the letter. Check CC TXMOD for TC 776 interest amount.

    Note:

    If the TC 846 is after the correspondence date, no C-Letter is required

  5. When inputting a C-Letter it is acceptable to use paragraphs from other letters if it clearly explains the issue.

  6. If inputting an Open Paragraph in a C-Letter, you must spell out the Date, such as Dec. 31, 2009. Abbreviate all months except for May, June and July.

  7. You may research Command Code ENMOD to determine if a C-Letter was issued previously. See IRM 2.3.15.

  8. If your notice module contains a -A Freeze and the resolution to your case is a credit transfer only:

    • And has a control base established and is being worked by an AM Employee, you must contact them, if no reply take necessary actions.

    • If the open control base is a clerical unit, take necessary account actions. You may have to change their control status to B to work reply

    • If you determine that the credit was moved by AM, check to make sure that it was moved to the correct Module , if incorrect move credit to requested account. If transfer was correct notate on correspondence close control and do not route reply AM

      Note:

      If reply states to release refund do not input TC 290. Route reply to AM.

  9. Close the control base and leave a history item to indicate what actions were taken as a result of the reply.

  10. When you have finished working the reply follow you local procedures for indicating that the reply has been worked.

3.14.2.10.5  (01-01-2013)
Replies to CP 108 — Error on FTD EFTPS Payment

  1. CP 108 — Error on FTD EFTPS Payment

    1. CP 108 generates when SCRIPS (Service Center Recognition Image Processing System) processing does not find the type of tax , or cannot be determined on an EFTPS payment. CP 108 advises taxpayer where credit was posted and provides a tear-off portion to return if payment was posted incorrectly. A toll free number is also provided if the taxpayer prefers to call rather than write.

    2. Action required:

      If Then
      If there is PN TC 150 on the module. Input credit transfer with the appropriate posting delay code.
      Credits need to be transferred from other than a memo account, Input any necessary credit transfers, per taxpayer’s response. (If the credit transfer is to a full paid account, or will result in an overpayment, on CC (Command Code) ADC34 overlay the bypass indicator with a 1 to bypass unpostable code 305). When transferring payment(s) enter the correspondence date.
      A taxpayer’s response indicates he/she is not required to file a form for the type of tax, to which the payment was applied, Transfer the payment and change the Filing Requirement (FR) using CC ENREQ/BNCHG. The CC BNCHG can be used to add, change or delete the TP's FR, which the FR is entered on Line 19. Remember when transferring payment(s), the correspondence date must be entered.

      Note:

      List of BMF Filing requirements can be found in Doc 6209.
      Payment is an EFTPS payment and taxpayer states he/she has no knowledge of correct application because his/her financial institution made payment, Research on IDRS for correct module and transfer credit, if you can not make a determination send to AM for resolution.
      Taxpayer provides an insufficient response Route to AM for resolution.

    Note:

    Note: To determine the correct correspondence date, if one is not entered on return first use the date reference in the incoming letter or inquiry. If the inquiry is a letter that is not dated, then use the earliest postmark or metered date. If that date is unknown, then use a date three days prior to IRS received date. If the inquiry is in the form of a fax, then use the date the fax was transmitted to us. If inquiry is received from a Taxpayer Assistance Center, then use the IDRS received date.

3.14.2.10.6  (01-01-2013)
CP 108 Reply Indicates Irate Taxpayer

  1. If the CP 108 indicates that you are dealing with an irate taxpayer send appropriate C Letter which must contain the following:

    1. An apology

    2. An explanation of the error

    3. Advice to prevent error in the future

3.14.2.10.7  (01-01-2013)
Replies to CP 267 - Notice of Excess Credit

  1. When a module contains more credits than claimed by taxpayer, a Q- freeze is established and a CP 267 or CP 268 generated. For replies Notice Review will work only the CP 267.

    1. CP 267 is a non-math error notice.

    2. CP 268 is a math error notice.

  2. These notices list up to 39 credits and request taxpayer to explain if the credits should be applied to other accounts or refunded. A 15-cycle freeze releases when any of the conditions below are met:

    1. TC 652/662 posts resolving the discrepancy between the credits claimed and the credits posted ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . (Reducing credits posted to less than credits claimed releases the Q freeze.)

    2. The module balance becomes zero or debit.

    3. TC 290 $.00 with PC 4 (with no secondary TCs or reference numbers posts.)

    4. The 15-week cycle hold expires.

      Note:

      When routing reply to AM a TC 570 is required if the Q Freeze will expire in 6 cycles or less. TC 570 is not required if the Q Freeze will be release in more than 6 cycles. TC 570 not needed if an -A Freeze is on the module

      (01/06)

  3. These notices must be worked on an expedite basis to avoid sending out an interim letter.

  4. If not previously controlled on lDRS, control using Letter CP 267 as the activity code.

  5. If less than three weeks remain before the freeze expires, do not input any credit transfers. See table below:

    If Then
    The credit will refund before any action can be taken 1. Follow refund deletion procedures. You will have to hold the correspondence until TC 846 posts to delete refund and you must open a control base:

    • ACTON

    • C01,MONITOR

    • *,ORIGINAL CONTROL DATE

    2. Once refund has been deleted, move credit(s) per taxpayer's request using appropriate posting delay codes. When transferring payment(s) enter the correspondence date.
    The credit(s) offsets to a module other than where taxpayer requested

    1. Reverse the offset and transfer to the correct account.

    2. If in cycle delete the CP 138 on OLNR.

    3. If the CP 138 was mailed, advise taxpayer to disregard the notice since we have applied the credit(s) as requested.
    A refund has already occurred Send appropriate C Letter.
    Tax assessment for the credit balance has already posted and you determine that the adjustment notice will accurately explain to the taxpayer the action taken

    • no action is required

    • If not send appropriate C-Letter explaining the situation.

    Note:

    Also see paragraph (7) below if taxpayer states that credit/payment is not theirs.

  6. If three weeks or more remain before freeze expires, follow table below:

    If taxpayer … And THEN
    Requests a credit transfer   1. Input the credit transfer, per taxpayer's request regardless of the fact that the TPer may go into Balance Due Status 2.) When transferring the payments enter the correspondence date.

    Reminder:

    If taxpayer requests the overpayment be applied to the immediately succeeding tax period, move the overpayment using TC830/710. and send appropriate C-Letter explaining transfer. If the taxpayer requests that the actual payment be moved, use the appropriate transaction codes, e.g., TC652/650.

    TP requests a credit transfer to apply overpayment to outstanding balances (01/06) research shows no outstanding balance due

    • Input TC 290 $.00 with PC 4.

    • Use Hold Code (HC) 0
    TP reply requests to move part of the overpaid amount to another module but does not say anything about what to do with the remaining credit balance.  

    • move part of the overpayment using TC830/710. and send appropriate C-Letter explaining transfer

    • Then input TC 290 $.00 with PC 4.

    • Use Hold Code (HC) 3
    Indicates no credit transfer is needed There are no balance due on other modules

    1. Input TC 290 $.00 with PC 4.

    2. Use Hold Code (HC) 3 if the refund will be for the amount expected by the taxpayer.

    3. Use Hold Code 0 if the refund will not be for the amount expected by the taxpayer.
    Indicates he/she will send an amended return or 941C,

    Note:

    Beginning January 1, 2010 adjustments to Forms 941 must be made by preparing and submitting a paper Form 941X,

    • And there is 3 or more weeks remaining before the freeze expires

    • If less than 3 weeks remaining before freeze expires

    • Input TC 570 on the account to prevent the overpayment from refunding.

      Note:

      If _-A Freeze account is on the module TC 570 not needed.

    • Monitor for posting of TC 846, Open control, input NOREF when appropriate, close control base.
    Indicates no credit transfer is necessary There are balance due on other modules 1. Input TC 290 $.00 with PC 4.

    Note:

    Do not offset the overpayment to a balance due, unless the taxpayer requests you to do so. Let the computer perform the offset unless there is an –E freeze on another module. The –E freeze will prevent an offset for 10 weeks. You must manually transfer the payment to the balance due account using the appropriate transaction codes, if the credit transfer will post before the release of the –E freeze.

    Exception:

    If there is a balance due on another module with an open control, coordinate with that area (if possible) to determine if you should input a credit transfer. If you do not get a response do not transfer credit.

    Payment(s) posted to the account after CP 267 was generated Proper credit disposition cannot be determined from a review of the account

    1. If your center can research , Pull payment document to determine if payment(s) is correctly posted.

    2. Transfer as appropriate. When transferring payment(s) enter the correspondence date.

    Taxpayer provides an insufficient response which doesn't address the credit situation.  

    1. If your center can research, Pull payment document to determine if payment(s) is correctly posted.

    2. Transfer as appropriate

    3. When transferring payment(s) enter the correspondence date.

    4. If unable to determine route reply to AM for resolution.

    If credit has been moved to an incorrect module based on the reply.  

    1. If your center can Research FTD Payments try to determine where payment was transferred.

    2. Depending on research, You may have to send the appropriate C-letter letting the TPer know what has happened or void current cycle notices

    If Taxpayer request has already been done.   If applicable, research CC ENMOD and TXMOD to determine if a taxpayer has received a notice/letter explaining the adjustment. if they have, no action is required. However you must close your control base and notate on correspondence 'action taken' or similar wording.. If no reply received send appropriate C-Letter.

  7. If the taxpayer states that the excess payment/credit does not belong to them:

    1. Research account for payment using normal Notice Review research CC to determine where the payment belongs and:

      IF THEN
      The payment belongs to the taxpayer Transfer to the proper module or tax period. When transferring payment(s) enter the correspondence date on ADD 34.
      The payment belongs to another taxpayer Transfer to the proper account. When transferring payment(s) enter the correspondence date.
      You cannot determine where the payment belongs Route reply to AM for resolution.

Exhibit 3.14.2-1 
CP Notice Descriptions

CP Notice Descriptions
BMF CP NOTICES BY TYPE AND MODULE STATUS
CP Number Form Number CP Type Overpaid/Even/Balance Due
101 940, 940-EZ MATH ERROR BALANCE DUE
102 941, 941C, 941SS, 941X, 943, 943X, 944, 944SS, 944X, 945, 945X MATH ERROR BALANCE DUE
103 CT-1, CT-1X MATH ERROR BALANCE DUE
104 720 MATH ERROR BALANCE DUE
105 11-C, 229, 730, 706, 709 MATH ERROR BALANCE DUE
106 990PF, 4720, 5227 MATH ERROR BALANCE DUE
107 1042 MATH ERROR BALANCE DUE
110 1066 MATH ERROR BALANCE DUE
111 940, 940-EZ MATH ERROR OVERPAID
112 941, 941C, 941SS, 941X, 943, 943X, 944, 944SS, 944X, 945, 945X MATH ERROR OVERPAID
113 CT-1, CT-1X MATH ERROR OVERPAID
114 720 MATH ERROR OVERPAID
115 11-C, 2290, 730, 706, 709 MATH ERROR OVERPAID
116 990PF, 4720, 5227 MATH ERROR OVERPAID
117 1042 MATH ERROR OVERPAID
118 1066 MATH ERROR OVERPAID
123 CT-1, CT-1X MATH ERROR EVEN BALANCE 1¢-99¢
124 720 MATH ERROR EVEN BALANCE 1¢-99¢
125 11-C, 2290, 730, 706, 709 MATH ERROR EVEN BALANCE 1¢-99¢
126 990PF, 4720, 5227 MATH ERROR EVEN BALANCE 1¢-99¢
127 1042 MATH ERROR EVEN BALANCE 1¢-99¢
128 ALL BMF FORMS OFFSET BALANCE DUE
131 990T, 1041, 1120 (all) MATH ERROR EVEN BALANCE 1¢-99¢
131A 990T, 1041, 1120 (all) MATH ERROR BALANCE DUE $1-$4.99
BMF CP NOTICES BY TYPE AND MODULE STATUS
CP Number Form Number CP Type Overpaid/Even/Balance Due
132 990T, 1041, 1120 (all) MATH ERROR BALANCE DUE
133 990T, 1041, 1120 (all) MATH ERROR OVERPAID
138 ALL BMF FORMS Adjustment OFFSET OVERPAID
141I 990, 990EZ, 990 PF    
141C 990, 990EZ, 990PF    
141L 990, 990EZ, 990PF    
145 ALL BMF FORMS CREDIT ELECT OVERPAID
147 1041, 1120 (all), 990 SERIES CREDIT ELECT OVERPAID
161 ALL BMF EXCEPT 1065 NO MATH ERROR BALANCE DUE
162 1065, 1120S FILING PENALTY BALANCE DUE
173 990T, 1041, 1120 (all) ES PENALTY BALANCE DUE
210 ALL BMF FORMS ADJUSTMENT OVERPAID-EVEN/ BALANCE DUE
 
215 CT-1, CT-1X CIVIL PENALTY BALANCE DUE  
220 ALL BMF FORMS ADJUSTMENT OVERPAID-EVEN/ BALANCE DUE  
 
225 ALL BMF FORMS CREDIT OVERPAID-EVEN/ BALANCE DUE  
 
260 ALL BMF FORMS CREDIT REVERSAL BALANCE DUE  
267 ALL BMF FORMS NON MATH ERROR OVERPAYMENT OVERPAID  
 
268 ALL BMF FORMS OFFSET MATH ERROR OVERPAID  
368 ALL BMF FORMS OFFSET OVERPAID  
380 ALL BMF FORMS TRANSCRIPT OVERPAID  
384 ALL BMF FORMS TRANSCRIPT OVERPAID  
386 ALL BMF FORMS TRANSCRIPT OVERPAID  
388 ALL BMF FORMS TRANSCRIPT OVERPAID  

Exhibit 3.14.2-2 
Common BMF Forms

Common BMF Forms
Form Form Title Tax Period MFT Due Date Payment Types Overpaid Bal. Due Even Non Math Error CP
11-C Occupational Tax and Registration Return for Wagering Annual Month 07 63 July 1 $50.00 or $500.00 115 105 125 161
706 U.S. Estate Tax Return 00000 52 9 months after Date of Death Tax paid by due date or installments 115 105 125 161
709 U.S. Gift Tax Return Calendar Year 51 April 15   115 105 125 161
720 Quarterly Federal Excise Tax Return Quarterly 03 Last day of the month following the end of the quarter. FTD's Monthly or Semi-Weekly 114, 268 104 124 161
730 Tax on Wagering Monthly 64 Last day of month following the month in which the taxable income is earned.   115 105 125 161
940, 940-EZ Federal Unemployment (FUTA) Tax Return Calendar Year 10 January 31 Quarterly FTD's 111, 268 101 121 161
941 Employer's Quarterly Income Tax Return Quarterly 01 One Month Quarter End FTD's on Various Schedule 112, 268 102 122 161
943 Employer's Annual Tax Return for Agricultural Employees Calendar Year 11 January 31 Monthly or Semi-Weekly FTD's 112, 268 102 122 161
944 Employer's Annual Federal Tax Return Calendar Year 14 January 31 FTD's on Various Schedule 112, 268 102 122 161
945 Annual Return of Withheld Income Tax Calendar Year 16 January 31 FTD's on Various Schedule 112, 268 102 122 161
1041 Estates and Trusts Income Tax Return Fiscal Year 05 3 1/2 Months After Tax Period Quarterly ES Payments 133, 268 132 131 161
1065 U.S. Partnership Fiscal Year 06 3 1/2 Months After Tax Period No Tax Due       162
1120 U.S. Corporation Income Tax Fiscal Year 02 2 1/2 Months After Taxable Year Quarterly ES Payments 133, 268 132 131 161
2290 Heavy Vehicle Use Tax Return Annual Month 07 60 1 Month After Tax Month End TC 610 or 670 115 105 125 161
8752 Required Annual Payment Under Sec. 7519 Annual 15 May 15   Transcript or CP 114      

Exhibit 3.14.2-3 
BMF Notices And Refund Transcripts Table

BMF Notices And Refund Transcripts Table
BMF NOTICE: CP# BMF NOTICE: OUTPUT BMF NOTICE: CP TYPE BMF NOTICE: CAF/RAF NRPS: SELECT NRPS: CATEGORIES NRPS: MRS NRPS: LOCAL CONTROL NOTES OR FORMS
101 101 Math Error (ME)/Balance Due Yes Yes A/B/D/H Yes Yes 940, 940-EZ
102 102 Math Error (ME)/Balance Due Yes Yes A/B/D/H Yes Yes 941, 943, 944, 945
103 103 Math Error (ME)/Balance Due Yes Yes A/B/D/H Yes Yes C.T.-1
104 104 Math Error (ME)/Balance Due Yes Yes A/B/D/H Yes Yes 720
105 105 Math Error (ME)/Balance Due Yes Yes A/B/D/H Yes Yes 11-C, 706, 709, 730, 2290
106 106 Math Error (ME)/Balance Due Yes Yes A/B/D/H Yes Yes 5227, 4720
107 107 Math Error (ME)/Balance Due Yes Yes A/B/D/H Yes Yes 1042
108 108 Inquiry Yes No   No No FTD
109 109 Inquiry Yes No   No No EIN/name
110 110 Math Error (ME)/Balance Due Yes Yes A/B/D/H Yes Yes 1088
111 111 Math Error (ME)/Overpay Yes Yes A/B/E/H Yes Yes 940, 940-EZ
112 112 Math Error (ME)/Overpay Yes Yes A/B/E/H Yes Yes 941, 943, 944, 945
113 113 Math Error (ME)/Overpay Yes Yes A/B/E/H Yes Yes C.T.-1
114 114 Math Error (ME)/Overpay Yes Yes A/B/E/H Yes Yes 720
115 115 Math Error (ME)/Overpay Yes Yes A/B/E/H Yes Yes 11-C, 706, 709, 730, 2290
116 116 Math Error (ME)/Overpay Yes Yes A/B/E/H Yes Yes 5227, 4720
117 117 Math Error (ME)/Overpay Yes Yes A/B/E/H Yes Yes 1042
118 119 Math Error (ME)/Overpay Yes Yes A/B/E/H Yes Yes 1066
123 123 Math Error (ME)/Even Balance Yes Yes A/B/D/H No Yes  
124 124 Math Error (ME)/Even Balance Yes Yes A/B/D/H No Yes 720
125 125 Math Error (ME)/Even Balance Yes Yes A/B/D/H No Yes 11-C, 706, 709, 730, 2290
126 126 Math Error (ME)/Balance Due Yes Yes A/B/D/H Yes Yes 5227, 4720
127 127 Math Error (ME)/Even Balance Yes Yes A/B/D/H No Yes 1042
BMF NOTICE: CP# BMF NOTICE: OUTPUT BMF NOTICE: CP TYPE BMF NOTICE: CAF/RAF NRPS: SELECT NRPS: CATEGORIES NRPS: MRS NRPS: LOCAL CONTROL NOTES OR FORMS
128 128 Offset/Balance Due Yes No   No Yes Associated if another CP is selected
131 131 Math Error (ME)/Even Balance Yes Yes A/B/D/H No Yes 1120S, 1041, 1120-C, 990T
131A 131A Balance Due Yes Yes A/B/D/H Yes Yes 1120S, 1041, 1120-C, 990T
132 132 Math Error (ME)/Overpaid Yes Yes A/B/D/H Yes Yes 1041, 1120-C, 990T
133 133 Math Error (ME)/Overpaid Yes Yes A/B/D/H Yes Yes 1120S, 1041, 1120-C, 990T
134B 134B FTD/ES Payment Discrepancy Notice (Balance Due) Yes No   No No 1120 series, 720, 940, 941, 943, 944, 945, 1041, 1042
134R 134R FTD/ES Payment Discrepancy Notice (Refund) Yes No   No No 1120 series, 720, 940, 941, 943, 944, 945, 1041, 1042
135 135 Service Center No No   No No  
138 138 Offset to Balance Due Yes No   No Yes Associated if another CP is selected
139 139 Notification Yes No   No No  
140 140 Notification Yes No   No No Impact
141I 141I Notification Yes No A/B/D/H No No 990, 990EZ, 990PF
141C 141C Notification Yes No A/B/D/H No No 990, 990EZ, 990PF
141L 141L Notification Yes No A/B/D/H No No 990, 990EZ, 990PF
144 144 Notification Yes No   No No Impact
145 145 Credit elect Yes No   No Yes Associated if another CP is selected
146 146 Installment Balance Due Yes Yes A/B/D/H Yes Yes 2290
147 147 Subsequent credit elect Yes Yes A/B/D/H No Yes  
155 155 Service Center No No   No No  
157 157 Installment Balance Due Yes Yes A/B/D/H No Yes 2290
160 160 Reminder Balance Due Yes No   No No  
161 161 Balance due Yes Yes A/B/D/H Yes Yes  
162 162 Delinquent penalty Balance Due Yes Yes A/B/H Yes Yes 1065, 1120S
163 163 Reminder Balance Due Yes No   No No  
164 164 Service Center files No No   No No  
165 165 Bad check penalty Yes No   No No  
166 166 Insufficient funds Yes No   No No  
167 167 Notification Yes No   No No 940
168 168 Notification Yes No   No No  
169 169 Inquiry Yes No   No No  
BMF NOTICE: CP# BMF NOTICE: OUTPUT BMF NOTICE: CP TYPE BMF NOTICE: CAF/RAF NRPS: SELECT NRPS: CATEGORIES NRPS: MRS NRPS: LOCAL CONTROL NOTES OR FORMS
170 170 Service Center No No   No No  
171 171 Notification Yes No   No No  
172 172 Notification No No   No No  
173 173 ES Penalty overpay Yes Yes A/B/E/H Yes Yes 1120S, 1041, 1120-C, 990T,
174 174 Inquiry Yes No   No No 940, 940-EZ
179 179 Notification Yes No   No No 941, 943, 944, 945
180 180 Inquiry Yes No   No No  
181 181 Inquiry Yes No   No No  
182 182 Inquiry Yes No   No No 1120S, 1041, 1120-C, 990T
183 183 Inquiry Yes No   No No 720
184 184 Inquiry Yes No   No No 720
185 185 Service Center No No   No No TC 690
186 186 Service Center No No   No No  
187 187 Service Center Exam No No   No No Notice to Exam
188 188 Notification Yes No   No No Impact
189 189 Inquiry Yes No   No No 940
190 190 Notification Yes No   No No Impact
191 191 Service Center Accounting No No   No No  
192 192 Service Center No No   No No  
BMF NOTICE: CP# BMF NOTICE: OUTPUT BMF NOTICE: CP TYPE BMF NOTICE: CAF/RAF NRPS: SELECT NRPS: CATEGORIES NRPS: MRS NRPS: LOCAL CONTROL NOTES OR FORMS
193A 193 Service Center Adjustment No No   No No  
194 194 Service Center Accounting No No   No No  
195 195 Service Center Adjustment No No   No No  
196 196 Service Center Collection No No   No No  
197 197 Notification Yes No   No No  
198 198 Service Center No No   No No  
199 199 Service Center Entity No No   No No  
200 200 Service Center Entity No No   No No  
201 201 Service Center Entity No No   No No  
202 202 Service Center Entity No No   No No  
203 203 Notification Yes No   No No MIS. - Use Form 8109B
204 204 Notification Yes No   No No  
205 205 Notification Yes No   No No  
206 206 Service Center Collection No No   No No  
207 207 Notification Yes No   No No  
208 208 Service Center Adjustment No No   No No  
210 210 Adjustment Yes Yes A/F/H Yes Yes May be balance due, even or overpaid
215 215 Civil penalty Balance Due Yes Yes A/H No Yes  
220 220 Adjustment Balance Due Yes Yes A/F/H No Yes Keys 04/06 only
225 225 Credit Transfer Yes Yes A/D/E/H Yes Yes Keys 03/04/06/1040/46/70/74 only.
230 230 Combined Annual Wage Reconciliation (CAWR) Adjustment Yes No   No No  
231 231 Service Center Accounting No No   No No  
233 233 Service Center Exam No No   No No  
234 234 Service Center Adjustment No No   No No  
240 240 Combined Annual Wage Reconciliation (CAWR) Adjustment Yes No   No No  
243 243 Service Center No No   No No Special tax stamp
244 244 Notification No No   No No Form 11
245 245 Notification Yes No   No No  
BMF NOTICE: CP# BMF NOTICE: OUTPUT BMF NOTICE: CP TYPE BMF NOTICE: CAF/RAF NRPS: SELECT NRPS: CATEGORIES NRPS: MRS NRPS: LOCAL CONTROL NOTES OR FORMS
250C 250C Notification Yes No   No No 944
251 251 Combined Annual Wage Reconciliation (CAWR) Even balance Yes No   No No Status code 26 posting
252 252 Combined Annual Wage Reconciliation (CAWR) Balance due Yes No   No No Final notice
253 253 Combined Annual Wage Reconciliation (CAWR) Overpay Yes No   No No Requests Forms W-2
254 254 Notification Yes No   No No  
255 255 Combined Annual Wage Reconciliation (CAWR) Inquiry Yes No   No No  
259A 259A Notification (TDI Notice) Yes No   No No 990, 990EZ
259B 259B Notification (TDI Notice) Yes No   No No 990PF
259C 259C Notification (TDI Notice) Yes No   No NO 990PF
259D 259D Notification (TDI Notice) Yes No   No No 990T
259E 259E Notification (TDI Notice) Yes No   No No 990
259F 259F Notification (TDI Notice) Yes No   No No 5227
259G 259G Notification (TDI Notice) Yes No   No No 1120POL
260 260 Credit Removal Yes Yes A/D/E/F/H Yes Yes  
261 261 Notification Yes No   No No  
262 262 Notification Yes No   No No  
263 263 Notification Yes No   No No  
264 264 Notification Yes No   No No  
265 265 Notification Yes No   No No  
266 266 Notification Yes No   No No 2553
267 267 Overpay Yes Yes A/B/C/H Yes Yes 940, 941, 943, 944, 720, 1042, 1120, 1120-C
268 268 Math Error (ME)/Overpay Yes Yes A/B/C/H Yes Yes 940, 941, 943, 944, 720, 1042, 1120, 1120-C
270 270 Service Center Adjustment/Exam No No   No No  
271 271 Notification Yes No   No No  
272 272 Notification No No   No No  
273 273 Notification Yes No   Yes No  
274 274 Notification Yes No   Yes No  
275 275 Notification Yes No   Yes No  
278 278 Service Center No No   Yes No  
280 280 Inquiry Yes No   No No 720
284 284 Service Center No No   No No  
293 293 Service Center Exam No No   No No  
295 295 Service Center/Balance Due No No   No No 5500
295A 295A Service Center/Balance Due No No   No No 5500
296 296 Service Center Accounting No No   No No  
297 297 Levy Notification/Balance Due Yes No   No No  
297A 297A Levy Notification/Balance Due Yes No   No No  
298 298 Levy Notification/Balance Due Yes No   No No  
801 801 Math Error (ME)/Balance Due Yes Yes A/B/D/H Yes Yes 940PR
802 802 Math Error (ME)/Balance Due Yes Yes A/B/D/H Yes Yes 941PR, 943PR 944PR
811 811 Math Error (ME)/Overpay Yes Yes A/B/E/H Yes Yes 940PR
812 812 Math Error (ME)/Overpay Yes Yes A/B/E/H Yes Yes 941PR, 943PR 944PR
834B 834B FTD/ES Payment Discrepancy Notice (Balance Due) Yes No   No No 940PR, 941PR, 943PR, 944PR
834R 834R FTD/ES Payment Discrepancy Notice (Refund) Yes No   No No 940PR, 941PR, 943PR, 943PR
838 838 Offset to Balance Due Yes No   No Yes Spanish only
BMF NOTICE: CP# BMF NOTICE: OUTPUT BMF NOTICE: CP TYPE BMF NOTICE: CAF/RAF NRPS: SELECT NRPS: CATEGORIES NRPS: MRS NRPS: LOCAL CONTROL NOTES OR FORMS
861 861 Balance due Yes Yes A/B/D/H Yes Yes 940PR, 941PR, 943PR
865 865 Bad check penalty Yes No   No No 940PR, 941PR, 943PR
874 874 Inquiry Yes No   No No 940PR
910 910 Adjustment Yes Yes A/F/H No   May be balance due, even or overpay backup withholding with FTD
920 920 Adjustment Balance Due Yes Yes A/F/H No Yes May be balance due, even or overpay backup withholding with FTD
950A 950A Notification Yes No   No No 944PR
950B 950B Notification Yes No   No No 944PR
950C 950C Notification Yes No   No No 944PR
368 (Back up Withholding with FTD Notices) 368 Transcript No Yes G No No Backup withholding with FTD
380 (Million Dollar Notices) 380 Transcript No Yes G No No Refund $1,000,000 or more
384 (Refund Notices) 384 Transcript No Yes G No No Highly questionable refund.
386 (Highly Questionable Refund) 386 Transcript No Yes G No No Highly questionable refund.
388 (Refund with Interest) 388 Transcript No Yes G No No Refund with interest.

Exhibit 3.14.2-4 
BMF Forms — Standard Information

BMF Forms
FORM TITLE TYPE MFT TAX CLASS DOC. CODE PERIOD DUE DATE
11-C Special Tax Return & Application for Registry Wagering   63 4 3 Annual Date business opens and then yearly thereafter on July 1
706 U.S. Estate Tax Return   52 5 6   9 months after exact date of death
709 U.S. Gift Tax Return   51 5 9 Calendar 15-Apr
709A U.S. Short Form Gift Tax Return   51 5 8 Calendar 15-Apr
720 U.S. Quarterly Federal Excise Tax Return   3 4 20 Quarterly Last day of month following end of quarter
730 Tax on Wagering   64 4 13 Monthly Last day of month following earning period
940 Employer′s Annual Federal Unemployment (FUTA) Tax Return   10 8 40 Calendar 31-Jan
941 Employer′s Quarterly Federal Tax Return W/H and FICA 1 1 41 Quarterly Last day of month following end of the quarter
943 Employer′s Annual Tax Return for Agricultural Employees W/H and FICA 11 1 43 Calendar 31-Jan
945 Annual Return of Withheld Federal Income Tax (from non-payroll payments on Forms 1099 and W-2G) W/H 16 1 97 FTD Pymt. 31-Jan
945 Annual Return of Withheld Federal Income Tax (from non-payroll payments on Forms 1099 and W-2G) W/H 16 1 44 Annual 31-Jan
945 Annual Return of Withheld Federal Income Tax (from non-payroll payments on Forms 1099 and W-2G) W/H 16 1 37 Annual 31-Jan
990 Return of Organization Exempt from Income Tax   67 4 90 Calendar or Fiscal May 15 or 15th day of 5th month
FORM TITLE TYPE MFT TAX CLASS DOC. CODE PERIOD DUE DATE
990T Exempt Organization Business Income Tax Return Exempt Organization Corporation 34 3 93 Calendar or Fiscal April 15 or 15th day of 4th month
990T Exempt Organization Business Income Tax Return Exempt Organization Domestic Addr. 34 3 93 Calendar or Fiscal May 15 or 15th day of 5th month
990T Exempt Organization Business Income Tax Return Exempt Organization Foreign Addr. 34 3 93 Calendar or Fiscal June 15 or 15th day of 6th month
1041 U.S. Fiduciary Income Tax Return   5 2 44 Calendar or Fiscal April 15 or 15th day of 4th month
1041A U.S. Information Return - Trust Accumulation of Charitable Amounts Information on Charitable Amts. 36 4 81 Calendar or Fiscal April 15 or 15th day of 4th month
1042 Annual Withholding Tax Return for U.S. Source Income of Foreign Persons W/H 12 1 25 Annual 15th day of 3rd month
1065 U.S. Partnership Return of Income Information 6 2 65 Calendar or Fiscal April 15 or 15th day of 4th month
1120 U.S. Corporation Income Tax Return   2 3 10 Calendar or Fiscal March 15 or 15th day of 3rd month
1120 U.S. Corporation Income Tax Return   2 3 11 Calendar or Fiscal March 15 or 15th day of 3rd month
1120-C U.S. Income Tax Return for Cooperative Association   2 3 03 Calendar or Fiscal August 15 or 15th day of 8th month
1120S U.S. Small Business Corporation Income Tax Return   2 3 16 Calendar or Fiscal March 15 or 15th day of 3rd month
2290 Heavy Vehicle Use Tax Return Heavy Vehicle Use 60 4 95 Period Beginning Option 1st use or 5,000 miles, then from 7/1 to 6/30 Last day of month following month first used and then yearly by August 31
4720 Return of Certain Excise Taxes on Charities & Other Persons Under Chap 41 and 42 of the IRC Under Chapters 41 & 42 50 4 97 Calendar or Fiscal May 15 or 15th day of 5th month
5227 Split - Interest Trust Information Return   37 4 83 Calendar or Fiscal May 15 or 15th day of 5th month

Exhibit 3.14.2-5 
NRPS Selection Keys

NRPS Selection Keys
KEY CATEGORY A--Special Handling Required (EXPLANATION)
01 Overpaid amount between $25,000 and $1,000,000.
03 Balance due or overpayment of $1,000,000.00 or more.
04 Balance due amount with penalty or interest amount of $25,000 or More.
06 Large Corporation.
08 Balance due of $100,000.00 or more, but less than $250,000.00.
10 Balance due or adjustment of $250,000.00 or more, but less than $1,000,000.00.
15 CP 225 with Debit/Credit transfer
18 CP 210/220 for MFT 03 & with a tax period of YYYY08.
19 Balance due between $75,000.00--$100,000.00.
28 Corporate Examination Program (CEP) Cases.
29 CPs 297 and 298 deletes based on specific pending transactions.
35 Void CP 267 when specific criteria is found on the tax module.
41 Select any CP with Master File Tax Code (MFT) 02 and form type 1120-C (doc code 03)
51 Select if notice amount is an overpayment of $500 or more and a TC 766 or TC 806 is present [NTC TXM].
56 Select if notice is a CP 134B/R or CP 834B/R.
75 Form 8752 (Master File Tax Code (MFT) 15).
76 Balance due notice with an Excess Collection situation.
77 Select if a CP 145 with a tax period of 200612 or later if:

  1. Master File Tax Code (MFT) 01 with a filing requirement set to Master File Tax Code (MFT) 14 or

  2. Master File Tax Code (MFT) 14 with a filing requirement set to Master File Tax Code (MFT) 01.
78 CP 267A for MFT 03 & with a tax period of YYYY08.
KEY CATEGORY B--High Priority (EXPLANATION)
07 Form 706 (Master File Tax Code (MFT) 52)/Balance due or overpayment.
NN Local control can be used to increase the priority of any other selection key to this level.
09 Taxpayer notice code 90.
53 Balance due: delinquency penalty and extension of time to file pending or potentially mis-posted extension of Time to File.
KEY CATEGORY C -- FTD ROLLOVERS (EXPLANATION)
11 CP 267 for $25,000.00 or more.
12 CP 267 for $500.00 or more, but less than $25,000.00, or CP 268 for $500.00 or more.
34 CP 267 and CP 268 select if the overpayment amount is equal to the TC 716 or TC 710 greater than or less than $10.00 before penalty and interest.
36 CP 267 and CP 268 select if the notice amount is $500 or more and a TC 766 or TC 806 is present.
71 CP 267 select if the notice amount is between $25,000 and $75,000.00.
72 CP 267 select if the notice overpayment amount is between $75,000.00 and $100,000.00.
83 CP 267 select if the notice overpayment amount is between $100,000.00 and $250,000.00
KEY CATEGORY D--Balance Due and Even Balance (EXPLANATION)
02 Remittance Processing System (RPS) discrepancy.
37 Select if notice if for MFT 01, 14, 10, 11, 16 & if the corresponding MF tax module does not contain an -A freeze and has no associated pending transactions and contains no TC 186, TC 27X and no interest assessment and combination of up to 5 TC 650 amount where the payment date is later than the ending date of the tax period and the combined amount equals the notice amount greater than and less than $5.00.
38 Form 1120, when the underpaid tax plus pre-paid ES Penalty is equal to a pending credit transaction, or a credit amount, or the credit balance on another tax period.
39 Form 1120, the extension (FORM 7004) payment is posted to another open module (no TC 150).
40 The underpaid tax amount equals a pending credit transaction/balance due.
42 A refund has been intercepted on another module (TC 841)/and notice is balance due.
43 The underpaid tax of $25.00 or more is within 10% of a credit balance on another tax period.
44 Underpaid tax is equal to 1 to 5 credit transactions pending or posted to another tax period.
45 A credit transfer (Document Code 24, 34, 48, or 58) is pending to the notice module.
46 An adjustment transaction (TC 29X or TC 30X) is pending to the notice module.
47 A credit amount equal to one-fourth of the tax liability amount on Form 2290 is posted to another tax period.
48 A Master File merge transaction (TC 001/011/04X) is pending to this TIN (Balance due Notice).
49 Balance due: amount claimed equal open credit balance or the sum of 1 to 5 pending or posted credits
52 A refund (TC 846) has generated this cycle on another tax period. (Notice is equal to or less than refund.)
54 Delinquency penalty (TC 166) was not assessed on a potentially delinquent return.
55 Acceptable reason for not filing a return (TC 590/591), is posted to the notice module.
57 The prior two tax periods have credit transfers (Doc. Code 24/34/48/58) cross-referenced to another TIN
58 Balance due per taxpayer or Net Credit Claimed minus Total Credits amount is equal to a credit on open module.
59 Credit on an open module is available for offset.
70 A transaction is pending to the notice module.
KEY CATEGORY E--Overpaid Notices (EXPLANATION)
60 Refund transcript indicator set.
61 Generated Refundable Credit (TC 766) equal to the Overpayment amount or 1 to 5 credit transactions.
62 Amount of overpayment (not including credit interest) is greater than 10 times the tax liability.
63 Overpayment is frozen due to backup withholding.
64 Form 1041 with a TC 806 (withholding) on the module.
65 Overpaid: refund amount equal 1 FTD credit posted to the notice tax period.
66 Form 941: the two prior tax periods (Modules) contain TC 29X or TC 976 transactions. (Trend of Tax Adjustments/Amended returns.)
67 Any overpaid notice not selected under another key.
69 Overpayment (Not including credit interest) equal to one posted subsequent payment (TC 670).
73 The prior two tax periods have credit transfers (Doc. Codes 24/34/48/58) cross-referenced to another TIN
74 An adjustment or a credit transfer (Doc. Code 24/34/48/58) is pending to the notice module.
KEY CATEGORY F--Adjustment Notices (EXPLANATION)
60 Select an overpayment notice and the Refund Transcript indicator is set. Do not select if there is a BMF NRPS refund transcript already associated to the notice.
63 Select for Master File Tax Code (MFT) 16 only, select if Backup Withholding amount is significant.
79 Balance due notice, with a tax increase equal to a payment posted to another open module.
80 Balance due notice with a pending credit.
81 Overpaid notice with a pending debit.
82 Balance due or overpaid notice from $50,000.00 to $250,000.00.
84 Select if a Debit/Credit Transfer (DLN Document Code 24, 34, 48 or 58) transaction is pending [PND] for the same TIN, MFT and tax period as the notice [NTC].
KEY CATEGORY G--Refund Transcripts (EXPLANATION)
20 Million dollar refund.
21 High questionable refunds.
22 Refund interest.
23 Million dollar refund for $10 million or more.
24 Pending debit transaction.
25 Refund caused by subsequent payment (TC 670).
26 Refundable credit (TC 766) of $10.00 or more.
27 Any refund transcript not selected under another key.
KEY CATEGORY H - Local Control
06 Large Corporation
82 Select the percentage of notices requested that match the Local Control File (LCF) on CP Number, Master File Tax Code (MFT) and Math Error Code. (Taxpayer Settlement Notices only.)
90 Select if the notice matches the Local Control File (LCF) on any of the following:
TIN or
TIN and MFT or
TIN, MFT and Tax Period.
91 Select if the notices matches the ERS DLN on the LCF using all 14 digits of the DLN.
92 Select if the percentage of notices requested that match the LCF on one of the following:
CP Number or
CP Number and ZIP Code range or
CP Number and MFT or
CP Number and Freeze Code.
93 Select if the balance due amount exceeds the amount on LCF but is less than $25,000.00.
94 Select if the notice DLN matches the 1 to 14 significant digits of the DLN on the LCF.
95 Select the percentage of notices requested that match the LCF on:
CP Number and Penalty Code or
CP Number, MFT, and Percentage.
96 Select if the notice matches the LCF on Employment Code and the notice amount exceeds the amount on the LCF.
97 Select the percentage of notices requested that match the LCF on Master File Tax Code (MFT) and Tax Period.
KEY CATEGORY I -- Low Priority Balance Due Notices
31 Credit claimed was refunded in prior period (either year or quarter) with the same Master File Tax Code (MFT) for amount greater than or less than $10.00.

Exhibit 3.14.2-6 
Taxpayer Notice Codes (TPNCs)

Taxpayer Notice Codes (TPNCs)
TPNC TAXPAYER NOTICE CODES FOR FORM 706 (PRINTED TEXT ON NOTICE):
20 We found an error on Schedule A - Real Estate.
21 We found an error on Schedule B - Stocks and Bonds.
22 We found an error on Schedule C - Mortgages, Notes, and Cash.
23 We found an error on Schedule D - Insurance on the Decedent's Life.
24 We found an error on Schedule E - Jointly Owned Property.
25 We found an error on Schedule F - Other Miscellaneous Property not Reportable Under Any Other Schedule.
26 We found an error on Schedule G - Transfer During Decedent's Life.
27 We found an error on Schedule H — Powers of Appointment.
28 We found an error on Schedule I - Annuities.
29 We found an error on Schedule J - Funeral Expenses and Expenses Incurred in Administering Property Subject to Claims.
30 We found an error on Schedule K - Debts of Decedent and Mortgages and Liens.
31 We found an error on Schedule L - Net Losses During Administration and Expenses Incurred in Administering Property Not Subject to Claims.
32 We found an error on Schedule M - Bequests, etc., to Surviving Spouse (Marital Deduction).
33 We found an error on Schedule O - Charitable, Public, and Similar Gifts and Bequests (Charitable Deduction).
34 We found an error on Schedule P - Credits for Foreign Death Taxes.
35 We found an error on Schedule Q - Credit for Tax on Prior Transfers.
36 We found an error in the computation of Net Estate Tax.
37 We found an error in the computation of the for State Death Taxes.
38 We found an error in the computation of Tentative Tax.
39 We found an error in the addition of the credit amounts Page 1, Part II, Line 11.
40 We found an error in the computation of the balance due.
41 We found an error in the computation of the Unified Credit amount. The Unified Credit amount you reported was $ __________ The amount we recomputed is $ __________.
42 We found an error in the computation of the Marital Deduction on Schedule A.
47 We found an error on Schedule R in the computation of Total Generation-Skipping Transfer Tax.
50 We found an error on Schedule R-1 - Generation-Skipping Transfer Tax.
54 We found an error in the computation of the balance due or overpayment amount.
64 We found an error in the computation of Line 3c, Taxable Estate.
70 We found an error in the computation of the gross estate tax amount on Line 8.
71 .We found an error in the computation of the allowable Unified Credit amount on Line 11.
72 We found an error in the computation of the amount on Page 1, Part 2, Line 12.
82 We found an error in the computation of the amount on Page 1, Part 2, Line 18.
83 We found an error in the computation of your Total Tax amount.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORMS 706-GS(D) (PRINTED TEXT ON NOTICE):
55 We found an error in the computation of the taxable amount on Line 5.
56 We found an error in the computation of gross GST tax on Line 7.
57 We found an error in the computation of the allowable credit on Line 10.
65 We found an error in the computation of the Line 11, Net GST tax.
66 We found an error in the computation of the balance due or the overpayment amount.
83 We found an error in the computation of your total tax amount.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORMS 706-GS(T) (PRINTED TEXT ON NOTICE):
63 We found an error in the computation of the total net GST tax on Line 10, Form 706-GS(T).
66 We found an error in the computation of the balance due or the overpayment amount.
83 We found an error in the computation of the balance due or the overpayment amount.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORMS 706-NA (PRINTED TEXT ON NOTICE):
20 We found an error on Schedule A - Gross Estate in the U.S.
21 We found an error on Schedule B - Taxable Estate.
22 We found an error on Schedule B, Line 2 - Gross Estate Outside the U.S.
23 We found an error on Page 2, Part III, Schedule B, Line 3 - Entire gross estate wherever located.
24 We found an error on Schedule E - Jointly Owned Property.
26 We found an error on Schedule G - Transfer During Decedent's Life.
27 We found an error on Schedule H — Powers of Appointment.
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.
30 We found an error on Page 2, Part III, Schedule B, Line 5 — Deductions for expenses, claims, etc.
32 We found an error on Schedule M - Bequests, etc., to Surviving Spouse (Marital Deduction).
33 We found an error on Schedule O - Charitable, Public, and Similar Gifts and Bequests (Charitable Deductions).
34 We found an error on Page 2, Part III, Schedule B, Line 8 --- Total Deductions.
35 We found an error on Schedule Q - Credit for Tax on Prior Transfers.
36 We found an error in the computation of Net Estate Tax.
37 We found an error in the computation of the Credit for state death taxes.
38 We found an error in the computation of Tentative Tax.
39 We found an error in the addition of the credit amounts Page 1, Part II, Line 11.
40 We found an error in the computation of the balance due.
41 We found an error on Page 1, Part II, Line 7, in the computation of Unified Credit.
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.
47 We found an error on Schedule R in the computation of Total Generation-Skipping Transfer Tax.
50 We found an error on Schedule R-1 - Generation-Skipping Transfer Tax.
52 We found an error on Page 2, Part III, Schedule B, Line 9, and/or Page 1, Part II, Line 1, Taxable Estate.
54 We found an error in computing Page 1, Part II, Line 16, Balance Due.
56 We found an error in the computation on Page 1, Part II, Line 2, Total Taxable Gifts.
58 We found an error in the computation of the amount on Page 1, Part II, Line 8, Balance.
60 We found an error in the computation of the amount on Page 1, Part II, Line 9, Other Credits.
62 We found an error in the computation of the amount on Page 1, Part II, Line 15, Earlier Payments.
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.
67 We found an error in computation of the amount on Page 1, Part II, Line 3, Total.
68 We found an error in the computation of the amount on Page 1, Part II, Line 19, Total.
73 We found an error in the computation of the amount on Page 1, Part II, Line 6, Gross Estate Tax.
74 We found an error in the computation of the amount on Page 1, Part II, Line 8, Balance.
76 The amount claimed as prepaid tax with the extension of time to file on Page 1, Part 2, Line 18 was incorrect.
83 We found an error in the computation of your total tax amount.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORM 709 (PRINTED TEXT ON NOTICE):
10 We found an error in the computation of your taxable gifts for the current period
11 We found an error in the computation of your total taxable gifts on Page 1, Part 2, Line 3.
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.
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.
41 We found an error in the computation of the Unified Credit amount. The Unified Credit amount you reported was $__________. The amount we recomputed is $__________.
42 We found an error in the computation of the marital deduction on Schedule A.
48 We found an error in the generation-skipping transfer tax computation.
54 We found an error in the computation of the balance due or overpayment amount.
69 We found an error in the total gift tax computation on Page 1, Part 2, Line 6, Balance.
75 We found an error in the computation of Page 1, Part 2, Line 14, Total Credits
76 The amount claimed as prepaid tax with the extension of time to file on Page 1, Part 2, Line 18 was incorrect
79 We found an error in the computation of the total deductions amount on Page 3, Part 4, Line 8.
80 We found an error in the computation of the amount on Page 3, Part 4, Line 9.
81 We found an error in the computation of taxable gifts on Page 3, Part 4, Line 11.
83 We found an error in the computation of your total tax amount.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORM 720 (PRINTED TEXT ON NOTICE):
01 We found an error in the computation of the balance due or the overpayment amount.
02 We cannot allow the amount (or a portion of the amount) shown for claims from Schedule C because it was not claimed within 3 years from the time the original return was filed or within 2 years from the time the tax was paid.
03 We found an error in the computation of your total tax.
04 We cannot allow part of the amount shown for claims for Schedule C, because claims on Form 720 cannot exceed the tax reported on the return. To receive any remaining credit or refund, you may use Form 8849, Claim for Refund of Excise Taxes, or if applicable, Form 4136, Credit for Federal Tax Paid on Fuels.
10 We found an error in the amount shown for claims on Schedule C.
24 We found an error in the amount reported as total Federal Tax Deposits for the quarter and/or overpayment from the previous quarter.
90 Blank. TPNC 90 is a fill-in notice code. Use it when no other codes fully explains the adjustment or when more than three notice codes are necessary. TPNC 90 can be used with other notice codes.
TPNC TAXPAYER NOTICE CODES FOR FORM 730 (PRINTED TEXT ON NOTICE):
01 We found the computation of tax was not correct.
07 We found the amount of wagers and laid-off wagers were not added correctly.
08 Credit cannot be allowed because a statement was not submitted as prescribed by instructions on the Form 730.
09 We found an error when your credits were subtracted from your tax.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORM 940 - SERIES (PRINTED TEXT ON NOTICE):
01 We found an error in the computation of the balance due or overpayment amount.
02 We found an error in the computation of your Federal Unemployment Tax.
05 We found payments were incorrectly reported as exempt from Federal Unemployment Tax.
08 We found an error in the computation of the Credit Reduction Amount.
09 We found an error in the subtraction of the exempt payments from the total payments.
10 We Adjusted your tax as shown because we didn't receive a reply to our request for additional information.
11 We found an error in the computation of your Federal Unemployment Tax on Part 1, Line 6 of Form 940-EZ.
12 We found an error in the computation of your FUTA tax before adjustments.
13 We found an error in the computation of the amount of FUTA wages that were excluded from State Unemployment Tax.
14 We found an error in the computation of some FUTA wages that were excluded from State Unemployment Tax, or State Unemployment Tax that was paid late.
15 We found an error in the computation of your Total FUTA tax after adjustments.
16 We adjusted your tax as shown because we didn't receive a reply to our request for Part 2 of Schedule A.
26 We found the amount reported as total Federal Tax Deposits for the year differs from the amount we have credited to your account.
27 We found an error in the computation of exempt payments. The wages of Corporate Officers are not exempt from Federal Unemployment Tax. The first $7,000.00 of each officers wages is fully taxable at the current prevailing rate. We have adjusted your tax accordingly.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES (FORMS 941, FORM 941PR, FORM 941SS, FORM 943, FORM 943PR, FORM 944, FORM 944PR, FORM 944-SS, AND FORM 945) (PRINTED TEXT ON NOTICE):
01 We found an error in the computation of the balance due or overpayment amount.
02 We cannot allow the amount (or a portion of the amount) shown as an adjustment because it was not claimed within 3 years from the time the original return was filed, or within 2 years from the time the tax was paid.
03 We found an error in the computation of your total taxes.
04 The corrections on the Form 941C weren't shown as adjustments on your return.
05 We found an error in the computation of your Form 941C.
06 The excess withheld income tax must be claimed for a tax period ending within the same calendar years for which it was originally reported. An adjustment to income tax withheld for a prior year can only be allowed if the adjustment is the result of an administrative error. There was no indication on your return that the adjustment was the result of an administrative error. Please see Publication 15A/15 or the form instructions for information on administrative errors.
07 We found an error in the computation of your total Social Security/Medicare Tax.
08 Non-profit organization became liable for Social Security and/or Medicare Taxes effective 01-01-1984. Since we found no check mark in box on line 4 or other indication that the wages were not subject to Social Security and/or Medicare Taxes, we have computed the taxes and adjusted your return accordingly.
09 We found an error in the adjustment amount for "Current quarter's fractions and cents."
10 We found an error in the adjustment amount for "Current quarter's sick pay."
11 We found an error in the adjustment amount for the "Tips and Group Term Life Insurance."
16 We found an error in the computation for "Total Adjustments."
17 We found the amount paid with your return was erroneously shown on the Advanced Earned Income Credit Line.
18 The Advance Earned Income Credit payment cannot be the same as or more than Social Security/Medicare taxes.
19 We found an error in the subtraction of your Advance Earned Income Credit Payments from your Total Taxes.
20 The Total Federal Tax Deposit amount was erroneously shown on the Advance Earned Income Credit Line.
21 We found an incorrect Social Security Tax rate was used to compute your Social Security Taxes.
22 We found an incorrect Medicare Tax rate was used to compute your Medicare Taxes.
23 The Advance Earned Income Credit (AEIC) payment cannot be more than the appropriate percentage of the total wages and other compensation you paid. For 1995 and subsequent years, the appropriate percentage is 20.4%
24 We found the amount reported as total Federal Tax Deposits for the Quarter differs from the amount we have credited to your account.
25 Reserved.
26 We found the amount reported as total Federal Tax Deposits for the year differs from the amount we have credited to your account.
27 We adjusted your tax as shown because we did not receive a reply to our request for additional information. (Form 941, 943, 945)
28 We found an error in the adjustment amount for "Current year's adjustments." (Form 944)
29 We found an error in the adjustment amount for "Prior year's Income Tax adjustments." (Form 944)
30 We found an error in the adjustment amount for "Prior year's Social Security and Medicare adjustments." (Form 944)
31 We are processing your request to adjust previously reported Federal Income Tax Withholding, or taxes on Social Security Wages and/or Tips, or Medicare Wages and will send your another notice within 30 to 45 days. In the future, you should submit such adjustment requests on the appropriate Adjusted Employment Tax Return.
32 Adjustments of previously reported Federal Income Tax Withholding, or taxes on Social Security Wages and/or Tips, or Medicare Wages must be requested on the adjusted return for the form initially filed to report the tax. We have removed the adjustments and processed the remainder on the return.
33 We found an error in the addition of the Total deposits for this year and the COBRA premium assistance payments.
34 We did not process your request for a credit for the employers share of the Social Security tax (6.2%) on the exempt wages of qualified employees. The number of qualified employees and the amount of their exempt wages must be provided on the return. We have processed the remainder of your return. Request the credit by submitting the appropriate Adjusted Employment Tax return.
35 We did not process your request for a credit for the employers share of the Social Security tax (6.2%) on the exempt wages of qualified employees. The total of the “Taxable social security wages” and “Taxable social security tips” lines must be greater than or equal to the amount shown on the “Exempt wages/tips paid to qualified employees” line. We have processed the remainder of your return. Request the credit by submitting the appropriate Adjusted Employment Tax return.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORM 990-C (PRINTED TEXT ON NOTICE):
01 We found an error in the computation of your total income.
03 We found that the contributions deducted were more than the law allows.
04 We found an error in the computation of your taxable income.
05 We found an error in the computation of your total income tax.
06 We refigured your total income tax by using the alternative tax computation. This was to your advantage.
09 We found an error in the computation of your deductions.
10 We found an error in the computation of the tax due or overpayment amount.
11 Your Foreign Tax Credit was more than the law allows.
12 We found an error in the amount of Investment Credit applied against your tax.
13 We found an error in the amount of Work Incentive (WIN) Credit applied against your tax.
14 We found an error in the computation of your alternative tax.
15 We found an error in the computation of your gains and losses on Schedule D.
18 We found an incorrect amount of surtax exemption on Schedule J or on Form 1120-FY.
21 We found an error in the amount of Work Opportunity Credit applied against your tax.
23 We found an error in the computation of the Alternative Minimum Tax.
25 25 We found an error in the computation of the alcohol fuels credit or the Non-Conventional Source Fuel Credit.
26 We found an error in the computation of the Research Credit.
31 We found an error in the computation of the General Business Credit on Form 3800.
32 We found an error in the computation of Low Income Housing Credit on Form 8586.
33 We found an error in the computation of the Recapture of Low Income Housing Credit on Form 8611.
34 We found an error in the computation of the credit for prior year minimum tax on Form 8801 or Form 8827.
36 We found an error in the computation of the credit for federal tax on fuels on Form 4136.
39 We found that the amount reported as total estimated tax payments for the year differs from the amount we have credited to your account.
40 We adjusted your tax as shown because we did not receive a reply to our request for additional information.
41 We computed your tax for you.
44 We eliminated the estimated tax penalty for the above tax period. If you prepaid the penalty, we will refund it to you.
90 Fill-in narrative.
99 A refund cannot be sent to you at this time for the part of the refundable Energy Credit you Reported on Form 3468 that is more than the tax you owe. Congress must approve the funding, but as soon as the appropriation is made the refund of this credit will be sent to you or applied against any taxes you still owe.
TPNC TAXPAYER NOTICE CODES FOR FORM 990-PF (PRINTED TEXT ON NOTICE):
01 The amount you owe, or the amount you overpaid, was not correct.
02 An error was made when your total income was figured.
03 Reserved.
04 An error was made when your total investment income was figured.
05 An error was made when your total tax was figured.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORM 990-T (PRINTED TEXT ON NOTICE):
01 We found an error in the computation of your total income.
03 We found that the contributions deducted were more than the law allows.
04 We found an error in the computation of your taxable income.
05 We found an error in the computation of your total income tax.
06 We refigured your total income tax by using the alternative tax computation. This was to your advantage.
08 The credit claimed was more than the law allows.
10 We found an error in the computation of the tax due or overpayment amount.
11 Your Foreign Tax Credit was more than the law allows.
12 We found an error in the amount of Investment Credit applied against your tax.
13 We found an error in the amount of Work Incentive (WIN) Credit applied against your tax.
14 We found an error in the computation of your alternative tax.
15 We found an error in the computation of your gains and losses on Schedule D.
23 We found an error in the computation of the Alternative Minimum Tax.
25 We found an error in the computation of the alcohol fuels credit or the Non-Conventional Source Fuel Credit.
26 We found an error in the computation of the Research Credit.
31 We found an error in the computation of the General Business Credit on Form 3800.
32 We found an error in the computation of Low Income Housing Credit on Form 8586.
33 We found an error in the computation of the Recapture of Low Income Housing Credit on Form 8611.
34 We found an error in the computation of the credit for prior year minimum tax on Form 8801 or Form 8827.
38 We found an error on Page 1 of your return when your payments amounts were added.
39 We found that the amount reported as total estimated tax payments for the year differs from the amount we have credited to your account.
40 We adjusted your tax as shown because we did not receive a reply to our request for additional information.
41 We computed your tax for you.
44 We eliminated the estimated tax penalty for the above tax period. If you prepaid the penalty, we will refund it to you.
90 Fill-in narrative.
99 A refund cannot be sent to you at this time for the part of the refundable Energy Credit you Reported on Form 3468 that is more than the tax you owe. Congress must approve the funding, but as soon as the appropriation is made the refund of this credit will be sent to you or applied against any taxes you still owe.
TPNC TAXPAYER NOTICE CODES FOR FORMS 1041 (PRINTED TEXT ON NOTICE):
01 We found an error in the computation of your total income.
02 We found an error in the computation of the credit for prior year minimum tax on Form 8801.
03 We found that the contributions deducted were more than the law allows.
04 We found an error in the computation of your taxable income.
05 We found an error in the computation of your total income tax.
   
07 Your special deductions were more than the law allows.
08 The credit claimed was more than the law allows.
09 We found an error in the computation of your deductions.
10 We found an error in the computation of the tax due or overpayment amount.
11 Your Foreign Tax Credit was more than the law allows.
12 We found an error in the amount of Investment Credit applied against your tax.
   
15 We found an error in the computation of your gains and losses on Schedule D.
16 We found and error in the computation of your gains and losses on Form 4797.
20 We found an error in the amount shown as your exemption.
21 Reserved.
23 We found an error in the computation of the Alternative Minimum Tax.
24 We changed your Form 1041, U.S. Income Tax for Estates and Trusts because:

  • You computed your Alternative Tax incorrectly, or

  • We computed your tax using the Alternative Tax because it reduced your tax.
25 Reserved.
26 Reserved.
   
28 We found an error in the computation of your overpayment. The amount credited to your next year's estimated taxes, amount to be treated as paid by beneficiaries, and the refund amount did not total the overpayment claimed on your return.
We distributed your overpayment in the following priority::

  1. amount as paid by beneficiaries;

  2. amount credited to your next year's estimated taxes;

  3. your refund amount.
30 Reserved.
31 We found an error in the computation of the General Business Credit on Form 3800.
32 Reserved.
33 Reserved.
   
   
   
38 We found an error on page 1 of your return when your payment amounts were added.
   
40 We adjusted your tax as shown because we did not receive a reply to our request for additional information.
41 We computed your tax for you.
43 We can't allow the amount your reported as federal income tax withheld because your return didn't have the necessary Form(s) W-2 attached as verification.
44 We eliminated the estimated tax penalty for the above tax period. If you prepaid the penalty, we will refund it to you.
   
46 According to our records, you should file as an Estate using Form 1041 instead of filing form 1040. We transferred the information submitted on your Form 1040 to Form 1041 and processed it using the applicable exemption amount and tax rates for an estate return.
50 We found an error in the computation of the federal unemployment tax on Schedule H, Household Employment Taxes.
51 We found an error on Schedule H, Household Employment Taxes. The error was in:

  1. The computation of the total tax and/or

  2. The transfer of that amount to page 2 of Form 1041.
52 We adjusted the federal unemployment tax on your Schedule H, Household Employment Taxes because we did not receive a reply to our request for additional information.
55 We found an error in the computation of one or more of the following taxes or the totaling of these amounts on Schedule H, Household Employment Taxes:

  1. Social Security

  2. Medicare

  3. Federal income taxes.
57 The amount of cash wages you reported on Schedule H, Household Employment Taxes, was not enough to be considered taxable for employment tax purposes. Any Social Security and Medicare tax withheld should be returned to your employee. You may also have to file Form W-2C, Corrected Wage and Tax Statement, to correct the Social Security and Medicare wages you reported.
58 We found an error in the subtraction of your employee’s advance earned income credit from your total Social Security, Medicare, and income tax withheld on Schedule H, Household Employment Taxes.
60 We found an error in the computation of the credit reduction amount from Schedule H or it was omitted. We adjusted your household employment taxes accordingly.
88 We changed your Telephone Excise Tax Refund (TETR) amount based on the information you provided.
89 We changed your tax and/or credits because we did not receive the additional information we requested. The change includes the disallowance of all or part of your telephone excise tax refund you claimed on your tax return. We previously sent you a separate letter explaining the claim disallowance.
90 Fill-in narrative.
   
TPNC TAXPAYER NOTICE CODES FOR FORM 1042 (PRINTED TEXT ON NOTICE):
01 The balance due, or the amount you overpaid, was not correct.
02 An error was made when the total tax you owe for the year was figured.
26 The amount reported as Total Federal Tax Deposits for the year was not correct.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORM 1066 (PRINTED TEXT ON NOTICE):
01 We found an error in the computation of your total income from prohibited transactions.
05 We found an error in the computation of your total income tax from prohibited transactions.
10 We found an error in the computation of tax due or overpayment amount.
20 We found an error in the computation of tax on net income from foreclosure property.
25 We found an error in the computation of tax on contributions after the startup day.
88 There is a total disallowance of the Telephone Excise Tax Refund (TETR) amount claimed.
89 We changed your tax and/or credits because we did not receive the additional information we requested. The changed includes the disallowance of all or part of your telephone excise tax refund you requested on your tax return. We previously sent you a separate letter explaining the disallowance.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORM 1120-C (PRINTED TEXT ON NOTICE):
01 We found an error in the computation of your total income.
03 We found that the contributions deducted were more than the law allows.
04 We found an error in the computation of your taxable income.
05 We found an error in the computation of your total income tax.
06 We refigured your total income tax by using the alternative tax computation. This was to your advantage.
08 The credit claimed was more than the law allows.
09 We found an error in the computation of your deductions.
10 We found an error in the computation of the tax due or overpayment amount.
11 Your Foreign Tax Credit was more than the law allows.
12 We found an error in the amount of Investment Credit applied against your tax.
13 We found an error in the amount of Work Incentive (WIN) Credit applied against your tax.
14 We found an error in the computation of your alternative tax.
18 We found an incorrect amount of surtax exemption on Schedule J or on Form 1120-FY.
21 We found an error in the amount of Work Opportunity Credit applied against your tax.
23 We found an error in the computation of the Alternative Minimum Tax.
25 We found an error in the computation of the alcohol fuels credit or the Non-Conventional Source Fuel Credit.
26 We found an error in the computation of the Research Credit.
31 We found an error in the computation of the General Business Credit on Form 3800.
32 We found an error in the computation of the Low Income Housing Credit on Form 8586.
33 We found an error in the computation of the Recapture of Low Income Housing Credit on Form 8611.
34 We found an error in the computation of the credit for prior year minimum tax on Form 8827.
36 We found an error in the computation of the credit for federal tax on fuels on Form 4136.
39 We found that the amount reported as total estimated tax payments for the year differs from the amount we have credited to your account.
40 We adjusted your tax as shown because we didn't receive a reply to our request for additional information.
41 We computed your tax for you.
88 We changed your telephone excise tax refund amount based on the information you provided.
89 We changed your tax and/or credits because we did not receive the additional information we requested. The change includes the disallowance of all or part of your telephone excise tax refund you requested on your tax return. We previously sent you a separate letter explaining the disallowance.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORM 1120 (PRINTED TEXT ON NOTICE):
03 We found that the contributions deducted were more than the law allows.
10 We found an error in the computation of the tax due or overpayment amount.
11 Your Foreign Tax Credit was more than the law allows.
12 We found an error in the amount of Investment Credit applied against your tax.
13 We found an error in the amount of Work Incentive (WIN) Credit applied against your tax.
14 We found an error in the computation of your alternative tax.
15 We found an error in the computation of your gains and losses on Schedule D.
16 We found an error in the computation of your gains and losses on Form 4797.
18 We found an incorrect amount of surtax exemption on Schedule J or on Form 1120-FY.
21 We found an error in the amount of Work Opportunity Credit applied against your tax.
22 Your deduction for additional first year depreciation was more than the law allows.
23 We found an error in the computation of the Alternative Minimum Tax.
25 We found an error in the computation of the Alcohol Fuels Credit or the Non Conventional Source Fuel Credit.
26 We found an error in the computation of the Research Credit.
27 We found that the estimated tax payments (Federal Tax Deposits and applied overpayment from last year's tax) shown on your account do not agree with the amount claimed on your return.
30 We found an error in the computation of Total Income Tax for a fiscal year with two tax rates.
31 We found an error in the computation of the General Business Credit on Form 3800.
32 We found an error in the computation of Low Income Housing Credit on Form 8586.
33 We found an error in the computation of the Recapture of Low Income Housing Credit on Form 8611.
34 We found an error in the computation of the credit for prior year minimum tax on Form 8801 or Form 8827.
40 We adjusted your tax as shown because we did not receive a reply to our request for additional information.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORM 1120-F (PRINTED TEXT ON NOTICE):
01 We found an error in the computation of your total income.
04 We found an error in the computation of your taxable income.
09 We found an error in the computation of your deductions.
88 We changed your telephone excise tax refund amount based on the information you provided.
89 We changed your tax and/or credits because we did not receive the additional information we requested. The change includes the disallowance of all or part of your telephone excise tax refund you requested on your tax return. We previously sent you a separate letter explaining the disallowance.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORM 1120-FSC, 1120-L, 1120-ND, 1120-PC & 1120-SF (PRINTED TEXT ON NOTICE):
88 We changed your telephone excise tax refund amount based on the information you provided.
89 We changed your tax and/or credits because we did not receive the additional information we requested. The change includes the disallowance of all or part of your telephone excise tax refund you requested on your tax return. We previously sent you a separate letter explaining the disallowance.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORM 1120S (PRINTED TEXT ON NOTICE):
01 We found an error in the computation of your total income.
10 We found an error in the computation of the tax due or overpayment amount.
36 We found an error in the computation of the credit for federal tax on fuels on Form 4136.
37 We Found an error on page 1 of your return when the credit for federal tax on fuels was transferred from Form 4136.
38 We found an error on page 1 of your return when your payment amounts were added.
40 We adjusted your tax as shown because we did not receive a reply to our request for additional information.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORM 1120-H & FORM 1120-POL (PRINTED TEXT ON NOTICE):
01 We found an error in the computation of your total income.
04 We found an error in the computation of your taxable income.
05 We found an error in the computation of your total income tax.
06 We refigured your total income tax by using the alternative tax computations. This was to your advantage.
08 The credit claimed was more than the law allows.
10 We found an error in the computation of the tax due or overpayment amount.
12 We found an error in the amount of Investment Credit applied against your tax.
13 We found an error in the amount of Work Incentive (WIN) Credit applied against your tax.
14 We found an error in the computation of your alternative tax.
15 We found an error in the computation of your gains and losses on Schedule D.
16 We found an error in the computation of your gains and losses on Form 4797.
22 Your deduction for additional first year depreciation was more than the law allows.
25 We found an error in the computation of the alcohol fuels credit or the Non Conventional Source Fuel Credit.
26 We found an error in the computation of the Research Credit.
40 We adjusted your tax as shown because we did not receive a reply to our request for additional information.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORM 1120-REIT & FORM 1120-RIC (PRINTED TEXT ON NOTICE):
32 We found an error in the computation of Low Income Housing Credit on Form 8586.
33 We found an error in the computation of the Recapture of Low Income Housing Credit on Form 8611.
34 We found an error in the computation of the credit for prior year minimum tax on Form 8801 or Form 8827.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORM 11-C (PRINTED TEXT ON NOTICE):
01 The amount of tax was not figured correctly.
02 The tax rate was not used correctly.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORM 2290 (PRINTED TEXT ON NOTICE):
01 We found the computation of tax was not correct.
02 The tax rate was not used correctly.
03 The vehicles reported on a return for a later tax period were also taxable for the above tax period.
04 You don't qualify for paying in installments because the installment paid with your return was insufficient or the return was not filed by the due date.
05 The tax amounts shown by category did not equal the "Total Tax " due.
06 Only the additional vehicles acquired after the beginning of the fiscal year are to be reported on supplemental returns.
09 We found an error when your credits were subtracted from your tax.
14 We found an error in the computation of your total tax minus your credits on Part 1, Line 6. To receive any remaining credit or refund, you may use Form 8849, Claim for Refund of Excise Taxes.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORM CT-1 (PRINTED TEXT ON NOTICE):
01 We found an error in the computation of the balance due or overpayment amount.
02 We cannot allow the amount (or a portion of the amount) shown as an adjustment because it was not claimed within 3 years from the time the original return was filed, or within 2 years from the time the tax was paid.
03 An error was made in figuring your total Railroad retirement and Unemployment Repayment taxes.
04 The Supplemental tax was omitted or was not figured correctly.
05 We found an error in the computation of your Tier 1 Employer Tax.
06 We found an error in the computation of your Tier 1 Employee Tax.
07 We found an error in the amount of the total tax based on compensation.
08 We found an error in the computation of the Tier II Employer Tax.
09 We found an error in the computation of the Tier II Employee Tax.
10 Part of the credit shown as an adjustment cannot be allowed because it was not claimed within 3 years from the time the original return was filed, or 2 years from the time the tax was paid.
11 We found an error in the computation of your total railroad retirement taxes due.
12 We found an error in the computation of the adjustments to employer and employee Railroad Retirement taxes.
13 The Railroad Unemployment Repayment tax was not figured on your taxable wages.
14 Reserved
21 We found an incorrect Social Security rate was used to compute your Medicare taxes.
22 We found an incorrect Medicare tax rate was used to compute your Medicare taxes.
23 The Advance Earned Income Credit (AEIC) payment cannot be more than the appropriate percentage of the total wages and other compensation you paid. For 1995 and subsequent years, the appropriate percentage is 20.4%.
24 We found the amount reported as total Federal Tax Deposits for the quarter differs from the amount we have credited to your account.
25 Reserved
26 We found the amount reported as total Federal Tax Deposits for the year differs from the amount we have credited to your account.
27 We adjusted your tax as shown because we did not receive a reply to our request for additional information.
90 Fill-in narrative.
TPNC TAXPAYER NOTICE CODES FOR FORM 4720 AND 5227 (PRINTED TEXT ON NOTICE):
01 The amount you owe, or the amount you overpaid was not correct.
02 An error was made when your total income was figured.
03 Reserved
04 An error was made when your total investment income was figured.
05 An error was made when your total tax figured.
24 The wrong line was used when your lobbying expenditure tax was figured.
90 Fill-in narrative.

Exhibit 3.14.2-7 
Form 5792 (Request For IDRS Generated Refund)

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To complete Form 5792 follow the steps listed below:
1. TIN and file source: Enter taxpayer′s Social Security Number.
2. MFT code: Enter Master File Tax Code.
3. Tax Period: Enter as YYYYMM, such as 200012
4. Name control: Enter first four letters of taxpayer′s last name on the tax module.
5. TC 840 amount: Enter total amount of overpayment plus any interest due taxpayer from the IRS
6. TC 770 amount: Enter amount of interest due taxpayer.
7. Overpayment amount: Enter amount of overpayment to be refunded, not including interest.
8. Line no.: 01 equals prior year; 02 equals current year.
9. Interest Ind.: N equals Normal; R equals Restricted, 0 equals n/a.
10. D.O. code: Enter District Office Location Code.
11. Sequence number: Enter IDRS sequence number.
12. Block series no.: Leave blank unless issuing because of injured spouse claim.
13. 1st Name line: Enter name of payee. (If Form 1310 is attached, name line must state executor, claimant, etcetera.
14. 2nd Name line: Optional, unless the return is for a decreased taxpayer without a surviving spouse.
15. Street address: Enter street address or P.O. Box number to which refund is to be mailed.
16. City, State, ZIP code: Enter City, State and ZIP code to which refund is to be mailed.
17. Remarks: Enter appropriate remarks.
18. DLN of return: Enter the Document Locator Number of the return.
19. Interest to date: Enter the date to which interest is computed.
10. Total Interest: Enter total interest allowed. Use CC COMPA and attach IDRS print.
21. Research checklist: Check all appropriate blocks and enter requested information.
22. Number of employee: Enter tax examiner number, name, and phone number of the originator.

Exhibit 3.14.2-8 
BMF NRPS Selection Report

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Exhibit 3.14.2-9 
TEP File

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Exhibit 3.14.2-10 
GUF File — Generalized Unpostable Framework File

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Exhibit 3.14.2-11 
Resequence File

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Exhibit 3.14.2-12 
Reference Chart for Retyping Most BMF Notices

Tax Form Original CP Notice* Math Error Balance Due Math Error Overpayment Non-Math Error Balance Due
940 940-EZ CP 101 CP 111 CP 101 CP 111 CP 161
 
940PR CP 801 CP 811 CP 801 CP 811 CP 861  
941 943, 944, 945 CP 102 CP 112 CP 102 CP 112 CP 161  
941PR 943 PR 944PR CP 802 CP 812 CP 802 CP 812 CP 861  
CT-1 CP 103 CP 113 CP 123 CP 103 CP 113 CP 123, CP 161  
720 CP 104 CP 114 CP 124 CP 104 CP 114 CP 124, CP 161  
990 PF 4720 5227 8288, 8038-CP CP 106 CP 116 CP 126 CP 106 CP 116 CP 126, CP 161  
1120-C 990T 1041 CP 131/ 131A CP 132 CP 133 132 CP 133 CP 161  
1120 series CP 131 CP 131A CP 132 CP 133 CP 132 CP 133 CP 161  
 
 
1065 1120S CP 162 N/A N/A CP 162  
All Domestic Forms CP 210 N/A N/A CP 210  
940PR, 941PR, 943PR, 944PR 944-SS CP 910 N/A N/A CP 910  
All Domestic Forms CP 220 N/A N/A CP 220  
940PR, 941PR, 943PR 944PR 944-SS CP 920 N/A N/A CP 920  
All Domestic Forms CP 260 CP 101, CP 102, CP 103, CP 104, CP 105, CP 106, CP 107, CP 108, CP 110 N/A CP 161  
All Domestic Forms CP 267 CP 101, CP 102, CP 104, CP 134B, CP 834B CP 111. CP 112, 114, CP 132, CP 133, CP 134R, CP 145, CP 161, CP 268 CP 834R CP 161  
11-C, 706, 709, 730, 2290 CP 105 CP 115 CP 125 CP 105 CP 115 CP 125, CP 161  
Refund Transcripts - Can be converted to the appropriate CP as long as the MFT indicated on the transcript is valid for the respective CP.  
CPs that begin with 8 or 9 are the Spanish notices.  
**Any notice can be retyped to itself. For example, a CP 101 can be retyped to CP 101 to increase/decrease the balance due, add/subtract a payment, etc.  

Exhibit 3.14.2-13 
Format REQ77/FRM77

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Exhibit 3.14.2-14 
Form 1041 Estimated Tax Installment Dates

Form 1041 Estimated Tax Installment Dates
PERIOD ENDING 1ST 2ND 3RD 4TH RETURN DUE DATE
Dec. 31 4/15 6/15 9/15 1/15 4/15
Jan. 31 5/15 7/15 10/15 2/15 5/15
Feb. 28 (29) 6/15 8/15 11/15 3/15 6/15
Mar. 31 7/15 9/15 12/15 4/15 7/15
Apr. 30 8/15 10/15 1/15 5/15 8/15
May 31 9/15 11/15 2/15 6/15 9/15
June 30 10/15 12/15 3/15 7/15 10/15
July 31 11/15 1/15 4/15 8/15 11/15
August 31 12/15 2/15 5/15 9/15 12/15
Sept. 30 1/15 3/15 6/15 10/15 1/15
Oct. 31 2/15 4/15 7/15 11/15 2/15
Nov. 30 3/15 5/15 8/15 12/15 3/15

Exhibit 3.14.2-15 
Form 990-C Estimated Tax Installment Due Dates

Form 990-C Estimated Tax Installment Due Dates
PERIOD ENDING 1ST 2ND 3RD 4TH RETURN DUE DATE
Dec. 31 4/15 6/15 9/15 12/15 9/15
Jan. 31 5/15 7/15 10/15 1/15 10/15
Feb. 28 (29) 6/15 8/15 11/15 2/15 11/15
Mar. 31 7/15 9/15 12/15 3/15 12/15
Apr. 30 8/15 10/15 1/15 4/15 1/15
May 31 9/15 11/15 2/15 5/15 2/15
June 30 10/15 12/15 3/15 6/15 3/15
July 31 11/15 1/15 4/15 7/15 4/15
August 31 12/15 2/15 5/15 8/15 5/15
Sept. 30 1/15 3/15 6/15 9/15 6/15
Oct. 31 2/15 4/15 7/15 10/15 7/15
Nov. 30 3/15 5/15 8/15 11/15 8/15

Exhibit 3.14.2-16 
Form 990-PF Estimated Tax Installment Dates

Form 990-PF Estimated Tax Installment Due Dates
PERIOD ENDING 1ST 2ND 3RD 4TH RETURN DUE DATE
Dec. 31 5/15 6/15 9/15 12/15 5/15
Jan. 31 6/15 7/15 10/15 1/15 6/15
Feb. 28 (29) 7/15 8/15 11/15 2/15 7/15
Mar. 31 8/15 9/15 12/15 3/15 8/15
Apr. 30 9/15 10/15 1/15 4/15 9/15
May 31 10/15 11/15 2/15 5/15 10/15
June 30 11/15 12/15 3/15 6/15 11/15
July 31 12/15 1/15 4/15 7/15 12/15
August 31 1/15 2/15 5/15 8/15 1/15
Sept. 30 2/15 3/15 6/15 9/15 2/15
Oct. 31 3/15 4/15 7/15 10/15 3/15
Nov. 30 4/15 5/15 8/15 11/15 4/15

Exhibit 3.14.2-17 
Form 990-T (Org Code 3) Estimated Tax Installment Due Dates.

Form 990-T (Org Code 3) Estimated Tax Installment Due Dates
PERIOD ENDING 1ST 2ND 3RD 4TH RETURN DUE DATE
Dec. 31 4/15 6/15 9/15 12/15 4/15
Jan. 31 5/15 7/15 10/15 1/15 5/15
Feb. 28 (29) 6/15 8/15 11/15 2/15 6/15
Mar. 31 7/15 9/15 12/15 3/15 7/15
Apr. 30 8/15 10/15 1/15 4/15 8/15
May 31 9/15 11/15 2/15 5/15 9/15
June 30 10/15 12/15 3/15 6/15 10/15
July 31 11/15 1/15 4/15 7/15 11/15
August 31 12/15 2/15 5/15 8/15 12/15
Sept. 30 1/15 3/15 6/15 9/15 1/15
Oct. 31 2/15 4/15 7/15 10/15 2/15
Nov. 30 3/15 5/15 8/15 11/15 3/15

Exhibit 3.14.2-18 
Form 990-T & Form 990 Estimated Tax Installment Due Dates

Form 990 T & Form 990 Estimated Tax Installment Due Dates
PERIOD ENDING 1ST 2ND 3RD 4TH RETURN DUE DATE
Dec. 31 4/15 6/15 9/15 12/15 5/15
Jan. 31 5/15 7/15 10/15 1/15 6/15
Feb. 28 (29) 6/15 8/15 11/15 2/15 7/15
Mar. 31 7/15 9/15 12/15 3/15 8/15
Apr. 30 8/15 10/15 1/15 4/15 9/15
May 31 9/15 11/15 2/15 5/15 10/15
June 30 10/15 12/15 3/15 6/15 11/15
July 31 11/15 1/15 4/15 7/15 12/15
August 31 12/15 2/15 5/15 8/15 1/15
Sept. 30 1/15 3/15 6/15 9/15 2/15
Oct. 31 2/15 4/15 7/15 10/15 3/15
Nov. 30 3/15 5/15 8/15 11/15 4/15

Exhibit 3.14.2-19 
Form 1120–POL Estimated Tax Installment Due Dates

Form 1120-POL Estimated Tax Installment Due Dates
PERIOD ENDING 1ST 2ND 3RD 4TH RETURN DUE DATE
Dec. 31 4/15 6/15 9/15 12/15 5/15
Jan. 31 5/15 7/15 10/15 1/15 6/15
Feb. 28 (29) 6/15 8/15 11/15 2/15 7/15
Mar. 31 7/15 9/15 12/15 3/15 8/15
Apr. 30 8/15 10/15 1/15 4/15 9/15
May 31 9/15 11/15 2/15 5/15 10/15
June 30 10/15 12/15 3/15 6/15 11/15
July 31 11/15 1/15 4/15 7/15 12/15
August 31 12/15 2/15 5/15 8/15 1/15
Sept. 30 1/15 3/15 6/15 9/15 2/15
Oct. 31 2/15 4/15 7/15 10/15 3/15
Nov. 30 3/15 5/15 8/15 11/15 4/15

Exhibit 3.14.2-20 
Exempt Organization Return Due Dates

Exempt Organization Return Due Dates
FORM MFT DUE DATES
990 67 15th DAY OF THE 5TH MONTH
990-PF 44 15th DAY OF THE 5TH MONTH
990-C 33 15th DAY OF THE 9TH MONTH
990-T 34 15th DAY OF THE 5TH MONTH
990-T (CODE 3) 34 15th DAY OF THE 4TH MONTH
1120-POL 02 15th DAY OF THE 3RD MONTH

Exhibit 3.14.2-21 
Types of Penalties And Interest

Types of Penalties And Interest
Computer Generated TC Reversal Name of Penalty Retype Penalty Code Manual Input TC Reversal Adjustment Generated Notice
TC 166 TC 167 Failure to File 01 TC 160 TC 161 YES
TC 176 TC 177 Estimated Tax 02 TC 170 TC 171 YES
TC 186 TC 187 Failure to Deposit 03,11,41,42,43,44,54,55,56,57,58 TC 180 TC 181 YES
TC 196 TC 197 Interest 09 TC 340 TC 341 NO
TC 238 TC 239 Daily Delinquency 10 TC 234 TC 235 YES
TC 246 TC 247 Miscellaneous 28 TC 240 TC 241 YES
TC 276 TC 277 Failure to Pay 07 TC 270 TC 271 YES
TC 286 TC 287 Dishonored Check 04 TC 280 TC 281 YES
TC 776 TC 277 Credit Interest None TC 770 TC 771 NO
None None Fraud 05 TC 320 TC 321 YES
None None Negligence 06 TC 350 TC 351 YES

Once a penalty or interest is adjusted manually (REQ 54/47) it becomes restricted. The computer can no longer adjust that penalty or interest, and the transaction code must be manually addressed with any future adjustments.

Upon reviewing a Form 941 for Key 54 (see 3.14.2) a Notice Review tax examiner does a REQ 54 and assesses FTF penalty (TC 160). If an amended 941 is submitted and a TC 291 is done, a manual TC 161 must also be input.

Manual adjustments with Hold Code 3 will suppress adjustment notices.

Exhibit 3.14.2-22 
Credit Reference Numbers

Credit Reference Numbers for Forms 706, 706-NA, 706 GS (T), and 709:
• 074 8610/Generation Skipping Tax
• 075 Section 4981 A Tax
• 076 Estate Tax
• 077 Gift Tax
• 078 Interest assessed for State Death Credit taken but not paid
Credit Reference Numbers for Form 720:
• 014 Fuel used in Noncommercial Aviation--Gasoline
• 016 Environmental Taxes--Petroleum (Imported Products)
• 017 Environmental Taxes--Imported Chemical Substances
• 019 Ozone Depleting Chemicals
• 020 Ozone Depleting Chemicals (Floor Stock)
• 022 Telephone (Toll. Local and Teletypewriter) Service
• 026 Transportation of Persons by Air
• 027 Use of International Air Travel Facilities
• 028 Transportation of Property by Air
• 030 Policies Issued by Foreign Insurers
• 031 Obligations not in registered form
• 033 Truck and Trailer Chassis and Bodies: Tractors
• 035 Kerosene
• 036 Coal Underground Mined $1.10 per Ton
• 037 Coal Underground Mined 4.4% of Ton Price
• 038 Coal Surface Mined $.55 per Ton
• 039 Coal Surface Mined 4.4% of Ton Price
• 040 Fuel Economy Vehicle Tax (Form 6197 required)
• 041 Sport Fishing Equipment
• 042 Electric Outboard Motors and Sonar Devices (Beginning with Tax Period 198412)
• 044 Bows and Arrows
• 049 Shells and Cartridges
• 050 Crude Oil Windfall Profit Taxes--Quarterly Production (Form 6047)
• 052 Alcohol and Cellulosic Biofuel Sold as, but Not Used in Fuel (claimed on Form 6478)
• 052 Crude Oil Windfall Profit Taxes--Annual Return
• 053 Environmental Taxes--Petroleum (Crude Oil)
• 054 Environmental Taxes--Chemicals
• 055 Environmental Taxes--Hazardous Wastes (Form 6047)
• 058 Gasoline Sold for Gasohol Production
• 059 Gasohol
• 060 Diesel Fuel
• 061 Diesel fuel and Special Motors Fuels
• 062 Gasoline
• 064 Inland Waterways Fuel use
• 065 Gasoline Floor Stock (Valid for 198803, 199103 and 199309
• 066 Tires (Highway Type)
• 067 Gasohol (Valid for 198803, 199103 and 199309)
• 069 Fuel used in Noncommercial Aviation--Fuel other than Gasoline
• 070 Diesel, Railroads, Floor Stock (199303)
• 071 Diesel Railroads Use
• 072 Gasoline sold for Gasohol Floor Stock
• 073 Gasoline sold for Gasohol 7% alcohol but less than 10% alcohol
• 074 Gasoline sold for Gasohol production 5.7% alcohol but less than 7.7%
• 075 Gasohol 7.7% alcohol but less than 10%
• 076 Gasohol 5.7% alcohol but less than 7.7%
• 078 Dyed Diesel Fuel used in Certain Intercity Buses
• 079 Other alcohol fuels 081 Manufacture Tax (DPT Vaccine)
• 082 Manufacturers Tax--DT Vaccine
• 083 Manufacturers Tax--MMR Vaccine
• 084 Manufacturers Tax--Polio Vaccine
• 085 Diesel (Floor Stocks)
• 086 Other Alcohol Fuels Floor Stock
• 087 Aviation Fuel other
• 088 Diesel Fuel Floor Stock
• 089 Floor Stock Vaccine
• 090 Aircraft Luxury Tax 199103--199309
• 091 Boat Luxury Tax 199103--199309
• 092 Passenger Vehicle Luxury Tax began 199103
• 093 Furs Luxury Tax 199103--199309
• 094 Jewelry Luxury Tax 199103--199309
• 095 Aviation fuel (other) 199703
• 096 Aviation Gasoline 199703
• 097 Vaccines Floor Stock
• 098 Ozone--Depleting Chemicals
• 099 Repealed expired or never programmed
• 101 Compressed Natural Gas ($.4854 per KCF)
• 103 Kerosene Floor Stock
Credit Reference Numbers for Form 940
Use an Alpha Code of T for Taxes and W for Wages followed by the appropriate State abbreviation, such as:
• WCA Wage Increase/Decrease (CA--State code for California)
• TCA Tax Increase/Decrease (CA--State code for California)
Credit Reference Numbers for Form 941:
• 003 Adjusted Total of Income Tax Withheld
• 004 Taxable Social Security Wages
• 005 Taxable Social Security Tips
• 007 Adjusted total of Social Security/Medicare taxes
• 072 Tips deemed to be wages
• 073 Taxable Medicare Wages and Tips
• 104 Special additions to federal income tax
• 105 Special additions to social security and Medicare tax
• 106 Current quarter's fractions of cents (Form 941)/Current year's adjustments (Form 944)
• 107 Current quarter's sick pay (N/A for Form 944)
• 108 Current quarter's adjustment for tips and group life insurance (N/A for Form 944)
• 109 Current year's income tax withholding (Form 941)/Prior year's income tax withholding (Form 944)
• 110 Prior quarter's social security and Medicare taxes (Form 941)/Prior year's social security and Medicare taxes (Form 944)
• 111 Total income tax withheld
• 112 Total social security and Medicare tax
• 113 Total adjustments
• 184 Total Adjustments to Withholding
• 185 Total Adjustments to Social Security/Medicare Tax
 • 766 Advance EIC (increase)
• 767 Advance EIC (decrease)
• Credit Reference Numbers for Form 943:
• 003 Adjusted Total of Income Tax Withheld
• 004 Taxable Social Security Wages
• 007 Adjusted total of Social Security/Medicare taxes
• 073 Taxable Medicare Wages and Tips
• 184 Adjustment to Withheld Income Tax
• 185 Adjustment to Withheld Social Security/Medicare tax
• 766 Advance EIC (increase)
• 767 Advance EIC (decrease)
Credit Reference Numbers for Form 944:
• 003 Adjusted Total of Income Tax Withheld
• 004 Taxable Social Security Wages
• 007 Adjusted total of Social Security/Medicare taxes
• 073 Taxable Medicare Wages and Tips
• 184 Adjustment to Withheld Income Tax
• 185 Adjustment to Withheld Social Security/Medicare tax
• 766 Advance EIC (increase)
• 767 Advance EIC (decrease)
Credit Reference Numbers for Form 945:
• 003 Adjusted Total of Income Tax Withheld
• 007 Adjusted total of Social Security/Medicare taxes
• 008 Backup Withholding
• 184 Adjustment to Withheld Income Tax
Credit Reference Numbers for Form 990 and 990T
• 221 Tax Motivated Transaction Assessment Amount
• 222 Tax Motivated Transaction Interest Amount
Credit Reference Numbers for Form 1041 AND 1120:
• 221 Tax Motivated Transaction Assessment Amount 222 Tax Motivated Transaction Interest Amount
Credit Reference Numbers for Form 4720:
• 151 Failure to Distribute Income
• 152 Excess Business Holdings
• 153 Investments which Jeopardize Charitable Purpose
• 154 Taxable Expenditures
• 182 Excess Grass Roots Contributions
• 183 Excess lobbying Contributions
• 213 Tax on Political Expenditures
• 214 Tax on Disqualified Lobbying Expenditures
Credit Reference Numbers for Form 5329 :
• 160 Tax on Excess Contributions. The sum of the 160 and 162 amounts must balance to the TC 29X amount.
• 162 Tax on Excess Accumulation
• 194 Tax on Excess Regular Distributions
• 195 Tax on Excess Lump Sum Distributions
• 233 Tax on Medical Savings Account (MSA)
For State abbreviations, see Document 6209

Exhibit 3.14.2-23 
Pending Transaction Flow Chart -- Manual

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Exhibit 3.14.2-24 
Pending Transaction Flow Chart -- Systemic
Refer to IRM 3.14.2.4.27.5 for more information about labeling notices.

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