3.24.180  Allocated Tips

Manual Transmittal

November 05, 2013

Purpose

(1) "This transmits revised IRM 3.24.180, ISRP System - Allocated Tips."

Material Changes

(1) Editorial changes made throughout to update dates in IRM.

Effect on Other Documents

IRM 3.24.180, dated October 26, 2012 (effective January 1, 2013) is superseded.

Audience

Data Conversion Operations

Effective Date

(01-01-2014)

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

3.24.180.1  (01-01-2014)
Introduction

  1. This section provides instructions for entering and verifying data from control documents and source documents that will produce employers annual information return of tip income and allocated tips using the ISRP system. It also provides instructions for entering and verifying corrections to the error register.

  2. Data Transcribers will also need to refer to IRM 3.24.38 , ISRP System - BMF General Instructions, for general procedures.

3.24.180.1.1  (01-01-2014)
Control Document and Source Documents

  1. Control data will be transcribed from Form 1332, Block and Selection Record.

  2. Data will be transcribed from Form 8027 ,Employer's Annual Information Return of Tip Income and Allocated Tips. Data will be transcribed from the error register in the case of error correction input. Form 8027and the error register will only be transcribed at the Cincinnati Submission Processing Campus.

3.24.180.1.2  (01-01-2014)
Forms/Program Numbers/Format Codes

  1. The following table illustrates the forms, program numbers and format codes:


    FORMS
    PROGRAM NUMBERS FORMAT CODES
    8027 80310 170
    8027 (Error Register) 80319 175

3.24.180.1.3  (01-01-2014)
Required Sections

  1. Form 8027

    1. Original Entry—Sections 01, 02, and 03 are always required.

    2. Key Verification—Sections 01, 02, and 03 are always required.

  2. Error Register

    1. Original Entry—Section 01 is always required.

    2. Key Verification—Section 01 is always required.

3.24.180.2  (01-01-2014)
General Instructions

  1. All money amount fields should be enter as whole dollars WITHOUT rounding. Ignore any amount to the right of the vertical line on the form.

    Note:

    $5,927.85 is entered as 5927 (with no rounding).

  2. Always use standard street and state abbreviations in accordance with IRM 3.24.38.4.4.14.8 "Street Address" and IRM 3.24.38.4.4.14.11 "State".

3.24.180.3  (01-01-2014)
Condition Codes

  1. Condition Code "U" is used when Line 8, Total Number of Directly Tipped Employees at this Establishment During 20XX, is zero or blank. The letter "U" is coded to the right of Line 8.

  2. Condition Code "4" is used when there is no entry for Lines 7a–c, the Allocation Basis and Line 7 is greater than zero. The number "4" will be coded to the right of Lines 7a, b or c.

3.24.180.4  (01-01-2014)
Action Codes

  1. Action Code "2" is used to drop the record residing on the error register from further processing.

  2. Action Code "6" is used to change a field of the record residing on the error register.

  3. Action Code "7" is used to force a record residing on the error register to the valid file. This is used when all fields have been transcribed correctly even though one or more fields have failed validity or consistency checks.

3.24.180.5  (01-01-2014)
ISRP Transcription Operation Sheets

  1. The following exhibits represent specific data entry procedures.

Exhibit 3.24.180-1 
Block Header Data Entry FORM 1332, BLOCK AND SELECTION RECORD (Program 80310/Format Code 170)

Block Header Data Entry
Source Document or Record:
FORM 1332, BLOCK AND SELECTION RECORD
Element No. Data Element Name Prompt Fld Term Instructions
(1) Service Center (SC) Block Control ABC <ENTER> The screen displays the Alphanumeric Block Control (ABC) that was entered in the Entry Operator (EOP) Dialog Window. It cannot be changed.
(2) SC Code FLC/DO <ENTER> SC Code "00" should always be generated. No entry is required.
(3) Format Code FCODE <ENTER> Enter "170" .
(4) Filling Fields   <ENTER> Press <ENTER> 6 times.
(5) Source Code SOURCE <ENTER> Enter "4" if the control document is Form 3893.

Exhibit 3.24.180-2 
Section 01 FORM 8027 (Program 80310/Format Code 170)

SECTION 01
Source Document or Record:
FORM 8027
Elem. No. Data Element Name Prompt Fld. Term. Instructions
(1) Section Number SECT:   Section "01" will always be generated. No entry is required.
(2) Serial Number SER# <ENTER> Enter the last two digits of the 13–digit DLN from the upper portion of the form. If the serial number has been generated by the system, verify that it matches the document being entered.
(3) Block Document Locator Number (DLN) DLN <ENTER> Enter the 11 digit Block DLN and press <ENTER> for the first record in the block.

Note:

Verify that the DLN is correct before going to the next document.

Note:

For all other records in the block, do not enter the Block DLN.

(4) Tax Year TAXPR <ENTER> Enter the tax period in YY format only if edited.
(5) Special Return Indicator SPI <ENTER> Enter the edited "F" , "N" from the immediate left of the "Final Return" box.
(6) Received Date DATE <ENTER> Enter the date as stamped or edited on the face of the return.
(7) Amended Document Code AMEND <ENTER> Enter "G" if the "Amended Return" box is checked.
(8) Establishment Name EST NAME <ENTER> ★★★★★★ Enter the establishment name from the "Name of Establishment" line.
(9) Employer Identification Number (EIN) EIN <ENTER> Enter the EIN from the "Employer Identification Number" box.
(10) Kind of Establishment KIND <ENTER> Enter the number coded in the "Type of Establishment" box.
(11) Establishment Street Address ADDR <ENTER> Enter the establishment street address.
(12) Establishment City CITY <ENTER> Enter the establishment city.

Note:

DO NOT use major city codes.

(13) Establishment State ST <ENTER> Enter the establishment state.
(14) Establishment ZIP Code ZIP <ENTER> Enter the establishment zip code.

Exhibit 3.24.180-3 
Section 02 FORM 8027 (Program 80310/Format Code 170)

SECTION 02
Source Document or Record:
FORM 8027
Elem. No. Data Element Name Prompt Fld. Term. Instructions
(1) Section Number SECT: <ENTER> Press <ENTER> if already present on the screen, otherwise enter "02" .
(2) Employer Name EMP NAME <ENTER> Enter the employer name as found on the Employer's name line.

Note:

If "Same" is shown or edited, enter an asterisk (*) and press <ENTER>.

(3) Establishment Number EST# <ENTER> Enter the establishment number to the right of the employer name.
(4) Employer Street Address ADDR <ENTER> Enter the employer street address.

Note:

If an asterisk (*) was entered for Elem. No. 2, press <ENTER> for elements 4 through 7.

(5) Employer City CITY <ENTER> Enter the employer city.

Note:

DO NOT use major city codes.

(6) Employer State ST <ENTER> Enter the employer state.
(7) Employer ZIP Code ZIP <ENTER> Enter the employer zip code.
(8) Total Charged Tips LN1 $ <ENTER> ★★★★★★ Enter the amount from line 1.
(9) Total Charged Receipts LN2 $ <ENTER> Enter the amount from line 2.

Exhibit 3.24.180-4 
Section 03 FORM 8027 (Program 80310/Format Code 170)

SECTION 03
Source Document or Record:
FORM 8027
Elem. No. Data Element Name Prompt Fld. Term. Instructions
(1) Section Number SECT: <ENTER> Press <ENTER> if already present on the screen, otherwise enter "03" .
(2) Total Service Charges LN3 $ <ENTER> Enter the amount from Line 3.
(3) Total Indirect Tips LN4A $ <ENTER> Enter the amount from Line 4a.
(4) Total Direct Tips LN4B $ <ENTER> Enter the amount from Line 4b.
(5) Total Tips LN4C $ <ENTER> Enter the amount from Line 4c.
(6) Gross Receipts LN5 $ <ENTER> Enter the amount from Line 5.
(7) Allocation Rate RATE <ENTER> Enter the rate from the center portion of Line 6.
(a) If the number is less than 8%, enter all four digits of the field (7.5% would be entered as 0750).
(b) If the number is equal to 8% (0800), do not enter the number, press <ENTER>.
(8) Gross Receipts Times Allocation Rate LN6 $ <ENTER> Enter the amount or the character from Line 6.
(9) Allocation of Tips LN7 $ <ENTER> Enter the amount from Line 7.
(10) Allocation Method 7A/B/C <ENTER> Enter the edited number (1, 2, 3 or 4) near the check boxes for lines 7a, b, and c.
(11) Number of Directly Tipped Employees LN8 <ENTER> Enter the number or the edited letter "U" from line 8.
If line is blank, enter "U" .

Exhibit 3.24.180-5 
Block Header Data Entry ERROR CORRECTION BLOCK HEADER FORM 1332, BLOCK AND SELECTION RECORD (Program 80319/Format Code 175)

Block Header Data Entry
Source Document or Record:
ERROR CORRECTION BLOCK HEADER
FORM 1332, BLOCK AND SELECTION RECORD
Elem. No. Data Element Name Prompt Fld. Term. Instructions
(1) SC Block Control ABC <ENTER> Enter the three characters from the upper left corner of the Form 1332 attached to the group of documents.
(2) Service Center Code FLC/DO <ENTER> Service Center Code "00" should always be generated. No entry is required.
(3) Format Code FCODE <ENTER> Enter "175" .

Exhibit 3.24.180-6 
Section 01 ERROR REGISTER (Program 80319/Format Code 175)

SECTION 01
Source Document or Record:
ERROR REGISTER—ERROR ACTION CODE 6
Elem. No. Data Element Name Prompt Fld. Term. Instructions
(1) Section Number SECT:   Section "01" will always be generated. No entry is required.
(2) Serial Number SER# <ENTER> Enter the last two digits of the 13 digit DLN from the upper portion of the form. If the serial number has been generated by the system, verify that it matches the document being entered.
(3) Error Sequence Number SEQ# <ENTER> Enter the 10 digit Error Sequence Number.
(4) Action Code ACT CD <ENTER> ★★★★★★ Enter Action Code.
If "2" or "7" was entered, press <F6> to proceed to the next error record.
(5) Element Number EL# <ENTER> Enter the element number coded to the left of the field to be corrected.
(6) Correction 1 CORR1 <ENTER> Enter the corrected data for this element.
(7) Element Number EL# <ENTER> Enter the element number coded to the left of the field to be corrected.
(8) Correction 2 CORR2 <ENTER> Enter the corrected data for this element.
(9) Element Number EL# <ENTER> Enter the element number coded to the left of the field to be corrected.
(10) Correction 3 CORR3 <ENTER> Enter the corrected data for this element.

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