Part 3. Submission Processing

Chapter 24. ISRP System

Section 213. Real Estate Mortgage Investment Conduit Income Tax Returns

3.24.213  Real Estate Mortgage Investment Conduit Income Tax Returns

Manual Transmittal

October 26, 2012

Purpose

(1) This transit revised IRM 3.24.213, ISRP System, Real Estate Mortgage Investment Conduit Income Tax Returns.

Material Changes

(1) Editorial changes made throughout IRM 3.24.213.

Effect on Other Documents

IRM 3.24.213, dated October 28, 2011 (effective January 1, 2012) is superseded.

Audience

Data Conversion Operations

Effective Date

(01-01-2013)

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

3.24.213.1  (01-01-2013)
Introduction

  1. This IRM provides instructions for entering and verifying data from control documents and Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, using the Integrated Submission and Remittance Processing (ISRP) system.

  2. Data transcribers will also need to refer to IRM 3.24.38, BMF General Instructions, for general procedures.

3.24.213.1.1  (01-01-2013)
Control Documents

  1. The control documents from which data may be transcribed are:

    • Form 813, Document Register

    • Form 1332, Block and Selection Record

    • Form 3893, Re-entry Document Control

3.24.213.1.2  (01-01-2013)
Source Document

  1. The source document from which data may be transcribed is:

    • Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return

3.24.213.1.3  (01-01-2013)
Forms/Program Numbers/Tax Class & Doc. Codes

  1. The following table illustrates the forms, program numbers, tax class and document codes.


    FORM    		 PROGRAM NUMBER TAX CLASS &
    DOC. CODE
    1066 12201 360

3.24.213.1.4  (01-01-2013)
Systemically Required Sections

  1. Section 01 will be entered and verified in all cases.

  2. Sections 02, 03 and 07 will be entered and verified if data is present.

3.24.213.2  (01-01-2013)
ISRP Transcription Operation Sheets

  1. The following exhibits represent specific data entry procedures.

Exhibit 3.24.213-1 
Block Header Data Entry

Block Header Data Entry
Source Document or Record:
Form 813 and Form 1332 FOR ORIGINAL INPUT DOCUMENTS
Form 3893 FOR RE-ENTRY DOCUMENTS
Elem. No. Data Element Name Prompt Fld. Term. Instructions
(1) Service Center (SC) Block Control ABC   The screen displays the Alphanumeric Block Control (ABC) that was entered in the Entry Operator (EOP) Dialog Window. It cannot be changed.
(2) Block Document Locator Number (DLN) DLN <Enter> Enter the first 11 digits from:
(a) Form 813 — the "Block DLN" box.
(b) Form 1332 — the "Document Locator No." box.
(c) Form 3893 — box 2.
The key verification (KV) EOP will verify the DLN from the first document of the block.
(3) Batch Number BATCH <Enter> Enter the batch number from:
(a) Form 813 and Form 1332 — the "Batch Control Number" box.
(b) Form 3893 — box 3.
If not present, enter the number from the batch transmittal sheet.
(4) Document Count COUNT <Enter> Enter the document count from:
(a) Forms 813 and 1332— the circled serial number. If a full block (100 documents) or if a number is not circled, enter 100.
(b) Form 3893 — box 4.
(5) Prejournalized Credit Amount CR <Enter> Enter the amount from:
(a) Form 813 — shown as the "Total" or "Adjusted Total" .
(b) Form 3893 — box 5.
Enter in dollars and cents.
(6) Filling <Enter>s   <Enter> Press <Enter> 5 times.
(7) Source Code SOURCE <Enter> If the control document is Form 3893, enter from box 11 as follows:
(a) R = "Reprocessable" box checked.
(b) N = "Reinput of Unpostable" box checked.
(c) 4 = "SC Reinput" box checked.
If none of the boxes are checked, consult your supervisor who will determine if a source code is required.
If any other control document, press <Enter>.
(8) Year Digit YEAR <Enter> If the control document is Form 3893, enter the digit from the box 12; otherwise, press <Enter>.
This is a MUST ENTER field if the source code is "R" , "N" , or "4" .
(9) Filling <Enter>   <Enter> No entry required.
Press <Enter>.
(10) Remittance Processing System (RPS) Indicator RPS <Enter> Enter a "2" if:
(a) "RPS" is edited or stamped in the upper center margin of Form 813 or Form 1332 or "RRPS" is in the header of Form 1332.
(b) box 13 is checked on Form 3893.

Exhibit 3.24.213-2 
Section 01 Form 1066 and Edit Sheet (Program 12201)

SECTION 01
Source Document or Record:
Form 1066 and Edit Sheet
Elem. No. Data Element Name Prompt Fld. Term. Instructions
(1) Section Number SECT:   Section "01" will always be generated. No entry is required.
(2) DLN 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) Check Digit CD <Enter> Enter the check digit if present.
(4) Name Control NC <Enter> If the check digit is not present, enter the name control.
(5) Employer Identification Number (EIN) EIN   Enter the EIN from the preprinted label or from the "EIN" block.
(6) Address Check ADDRESS CHECK?   Enter "Y" or "N" as appropriate.
(7) Street Key STREET KEY <Enter> Enter the street key
(8) ZIP Key ZIP KEY <Enter> Enter the zip key.
(9) Tax Period TAXPR <Enter> Enter the edited or underlined tax period from the upper right corner of the return.
(10) Received Date RDATE <Enter> Enter the date as stamped or edited on the face of the return.

Note:

Data for prompts "ES-3" through "ES-10" will no longer appear on an attached edit sheet. Instead, this data will be edited in the margin to the left of the Deductions Section. The data will be edited in "X-Y" format: where "X" represents the edit sheet line number and "Y" represents the data to be transcribed. ES-10 will not be preceded by "10" .


Examples:
Edited DataEnter on Screen
1-235Enter "235" for prompt "ES-1"
9–1Enter "1" for prompt "ES-9"
(11) Computer Condition Codes (CCC) ES–1 <Enter> Enter the edited code(s) from the dotted portion of Section 1, Line 1.
If computer condition code "G" is present and the document is a non-remittance return, end the document after this element.
If computer condition code "G" is present and the document is a remittance return , press <F6> to proceed to Section 03.
(12) Date Real Estate Mortgage Investment Conduit (REMIC) Started ES-2 <Enter> Enter the date shown or edited in box B in YYMM format.
(13) Number of Residual Holders ES-3 <Enter. Enter from the margin to the left of the Deductions section.
(14) Tax Equity and Fiscal Responsibility Act (TEFRA) Indicator ES-4 <Enter> Enter from the margin to the left of the Deductions section.
(15) Missing Schedule Code ES-5 <Enter> Enter from the margin to the left of the Deductions section.
(16) Audit Code ES-8 <Enter> Enter from the margin to the left of the Deductions section.
(17) Installment Sales Indicator ES-9 <Enter> Enter from the margin to the left of the Deductions section.
(18) Error Resolution System (ERS) Action Code ES-10 <Enter> Enter the edited digits from the bottom left margin.

Exhibit 3.24.213-3 
Section 02 Form 1066 (Program 12201)

SECTION 02
Source Document or Record:
Form 1066
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) In Care of Name Line C/O NAME <Enter> Enter the in care of name exactly as shown.
(3) Foreign Address FGN ADD <Enter> Enter the foreign address information as shown or edited from the entity area.
(4) Street Address ADDR <Enter> Enter the street address information as shown or edited from the entity area.

Caution:

If inputting a foreign address, enter the foreign city, province, and postal code in this field exactly as edited.
(5) City CITY <Enter> Enter the city from the entity area.

Caution:

If inputting a foreign address, only enter the edited foreign country code in this field.

(6) State ST <Enter> Enter the standard state abbreviation from the entity area.

Caution:

If inputting a foreign address, enter a period (.) in this field.
(7) ZIP Code ZIP <Enter> Enter the zip code from the entity area.

Caution:

If inputting a foreign address, leave this field blank. Press <Enter> to continue.

Exhibit 3.24.213-4 
Section 03 Form 1066 and Edit Sheet (Program 12201)

SECTION 03
Source Document or Record:
Form 1066 and Edit Sheet
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) Payment Received RMT <Enter> Enter the green rockered amount from the balance due area of the return or an attached cash register receipt.
If no amount is edited or the edited amount is illegible, check the control document for the correct amount.
This is a MUST ENTER field if a Prejournalized Credit Amount (prompt "CR" ) was entered in the Block Header.
(3) Total Assets BOXC $ <Enter> MINUS (−) Enter the amount from Box C.

Note:

Data for prompts "ES-11" through "ES-12" will no longer appear on an attached edit sheet. Instead, this data will be edited in the margin to the left of the Deductions Section. The data will be edited in "X-Y" format: where "X" represents the edit sheet line number and "Y" represents the data to be transcribed.


Examples:
Edited DataEnter on Screen
11-100Enter "100" for prompt "ES-11"
12–1500Enter "1500" for prompt "ES-12"
(4) Net Short Term Capital Gain/Loss ES11 <Enter> MINUS (−) Enter the edited digits from the bottom right margin.
(5) Net Long Term Capital Gain/Loss ES12 <Enter> MINUS (−) Enter the edited digits from the bottom right margin.

Exhibit 3.24.213-5 
Section 07 Form 1066, Section II (Program 12201)

SECTION 07
Source Document or Record:
Form 1066, Section II
Elem. No. Data Element Name Prompt Fld. Term. Instructions
(1) Section Number SECT: <Enter> Press <Enter> if already present on the screen; otherwise enter "07" .
(2) Total Tax II1 <Enter> Enter amount form Section II, Line 1.
(3) Tax Paid on F7004 LN2 <Enter> Enter amount from Section II, line 2.
(4) Federal Telephone Excise Tax Paid 4... <Enter> For TY2006 returns, enter amount from Section II, line 2b; otherwise, press <Enter>.
(5) Discuss with Preparer Checkbox CKBX <Enter> Enter "1" if only the "Yes" box is checked; otherwise, press <Enter>.
(6) Preparer's PTIN PTIN <Enter> Enter the preparer's PTIN.
(7) Preparer's EIN PEIN <Enter> Enter the preparer's EIN.
(8) Preparer's Telephone # TEL# <Enter> Enter the preparer's telephone number.

Exhibit 3.24.213-6 
Section 20 Form 8913 (Program 12201)

Reminder:

Only transcribe this section for TY2006 returns.

SECTION 20
Source Document or Record:
Form 8913
Elem. No. Data Element Name Prompt Fld. Term. Instructions
(1) Section Number SECT: <Enter> Press <Enter> if already present on screen; otherwise, enter "20" .
(2) Tax Refund 15(D) <Enter> Enter the amount from line 15, column (d).
(3) Interest on Tax Refund 15(E) <Enter> Enter the amount from line 15, column (e).

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