3.12.8 Information Returns Processing

Manual Transmittal

November 10, 2021

Purpose

(1) This transmits revised IRM 3.12.8, Error Resolution, Information Returns Processing.

Material Changes

(1) IRM 3.12.8.1.2(2) Policy Statements for Submission Processing cited for additional authority of instruction.

(2) IRM 3.12.8.2(1) Title for Form 1099-MISC changed from "Miscellaneous Income" to "Miscellaneous Information" to reflect the current form.

(3) IRM 3.12.8.2.3(7), (9) and (10) Title for Form 1099-MISC changed from "Miscellaneous Income" to "Miscellaneous Information" to reflect the current form.

(4) IRM 3.12.8.2.5(1) Unnecessary information removed from the Condition column of Error Indicator 4.

(5) IRM 3.12.8.3.4(4) Instruction to research for a missing name using the Taxpayer Identification Number (TIN) present moved to IRM 3.12.8.3.4(5) along with the exception statement applicable to the instruction.

(6) IRM 3.12.8.3.4(5) Added instruction to research missing names using the TIN present delete records when a name is not found with certain exceptions. All subsequent instruction renumbered to reflect the additional paragraph.

(7) IRM 3.12.8.4(2) e)

(8) IRM 3.12.8.4.1(3) and (4) Form 1096, Annual Summary and Transmittal of U.S. Information Returns replaced in the instruction with "document code 69 format code 007" to reflect the way the data record appears on the error register for correction.

(9) IRM 3.12.8.4.3

  • (2) Form 1096, Annual Summary and Transmittal of U.S. Information Returns replaced in the instruction with "document code 69 format code 007" to reflect the way the data record appears on the error register for correction.

  • (4) Document codes added to the form types cited in the instruction to reflect the way the data records appear on the error register for correction.

(10) IRM 3.12.8.5

  • (6) Redundant instruction to ensure the amounts transcribed correctly removed.

  • (8) d) and e) Removed from the instruction form types without the indicator fields stated in the instruction due to form changes for the new filing season.

  • (8) f) Note to delete Form W-2G, Certain Gambling Winnings, with only Federal tax withholding reported removed because instruction states all form types.

(11) IRM 3.12.8.5.1(2) a) Title of box 2 changed to reflect the current Form 1098-F, Fines, Penalties, and Other Amounts.

(12) IRM 3.12.8.5.2(1) Checkbox title changed from EPF/TPP to EPF/TP to reflect the current form.

(13) IRM 3.12.8.5.7(1) Title of box 1 changed from "IRA contributions other than amounts in boxes 2-4 and 8-10..." to "IRA contributions (other than amounts in boxes 2-4 and 8-10, 13a and 14a)" to reflect the current Form 5498, IRA Contribution Information.

(14) IRM 3.12.8.5.8(5) Title of box 5 changed from "Private or State or Coverdell ESA" changed to "Distribution is from:" to match the current Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530).

(15) IRM 3.12.8.2.9.1 Instruction for invalid use of Action Code 2 resulting in AA errors moved from previous locate IRM 3.12.8.2.10 and subsequent instruction renumbered.

(16) IRM 3.12.8.2.9.2 Instruction for invalid use of Action Code 6 resulting in AA errors moved from previous locate IRM 3.12.8.2.11 and subsequent instruction renumbered.

(17) IRM 3.12.8.2.9.3 Instruction for invalid use of Action Code 7 resulting in AA errors moved from previous locate IRM 3.12.8.2.12 and subsequent instruction renumbered.

(18) IRM 3.12.8.5.11(3) c) Additional instruction added to abbreviate where possible and delete the right most characters more than 39 for consistency with all description fields with this instruction.

(19) IRM 3.12.8.5.12 (7) b)

  • Changed instruction for form type code 103 and 203 valid received date to blank any indicator and received date present. Change made after purposed regulations to apply only to orders or agreements binding on or after January 01, 2022. IPU 21U0005 issued 01-04-2021

  • Update made to instruction on the beginning valid date for late Form 5498 series extended one month to June 30, 2021. Notice 2021-21 extended the due date to provide relief to filers affected by ongoing Coronavirus 2019 pandemic. IPU 21U0818 issued 06-09-2021 Update made to reflect the original due date for tax year 2021 returns.

  • Updated the valid date ranges for delinquent indicators "P" and "X" to reflect the tax year 2021 due dates.

(20) IRM 3.12.8.5.13

  • (2) New box 2, Direct sales instruction added for Form 1099-NEC, Nonemployee Compensation and subsequent instruction renumbered.

  • (3) FATCA filing requirement instruction removed to reflect the checkbox removed from the current tax year form. Box 4, Federal income tax withheld instruction moved from paragraph two to paragraph three.

(21) IRM 3.12.8.5.15(4) b) Instruction added to include number and possible valid characters for the entry.

(22) IRM 3.12.8.5.19(9) a) Correction made from box 12 to box 3 to reflect the current face of the Form 1099-B, Proceeds From Broker and Barter Exchange Transactions.

(23) IRM 3.12.8.5.26

  • (3) and (4) Titles for box 2a and 2b updates to "Total capital gain distr." and "Unrecap. Sec. 1250 gain" respectively to reflect the tax year 2021 Form 1099-DIV, Dividends and Distributions.

  • (7) Instruction added for new box 2e, "Section 897 ordinary dividends."

  • (8) Instruction added for new box 2f, "Section 897 capital gain" and all subsequent instruction renumbered.

  • (9) through (17) Field prompt alpha characters and money amount numbers increased by two to account for new box 2e (field G-money amount 7) and 2f (field H money amount 8).

  • (18) box 12 instruction and field dependencies instructions updated to reflect the new locations of dependent money amounts.

  • (19) Field prompts requiring blanks updated by two to reflect the two additional fields added in tax year 2021.

(24) IRM 3.12.8.5.30

  • Title for Form 1099-MISC changed from "Miscellaneous Income" to "Miscellaneous Information" to reflect the tax year 2021 form revision.

  • (4) Income fields updated to reflect the new locations of income to compare to Federal income tax withheld. New field K added and old field M replaced with field N to reflect the new location in the data record.

  • (11) New box 11 money amount 10 titled "Fish purchased for resale" instruction added and all subsequent instruction renumbered.

  • (12) through (15) Field prompt alpha characters and money amount numbers increased by one to account for new box 11, Box 12 a corrected to box 12.

  • (16) Field prompts requiring blanks updated by one to reflect the new field added in tax year 2021.

(25) IRM 3.12.8.5.33(10) a)Title of box and location stated in instruction for consistency and existing instruction moved to b) and c).

(26) IRM 3.12.8.6(1) Reference to the location of the payer entity and a list of identifying terms updated to IRM 3.12.8.3.4 (7) to reflect the current location.

(27) IRM 3.12.8.6.8(3) e) Account Type Code S added to the instruction to assist with recognizing potential error conditions.

(28) Exhibit 3.12.8-1 Required fields table updated to reflect form changes for tax year 2021 on document codes 71, 91 and 95.

(29) Exhibit 3.12.8-2 Fields transcribed or scanned updated for the following return document codes to reflect tax year 2021 form updates: 71, 91 and 95.

(30) Exhibit 3.12.8-9 Document code 71 added to the instruction to pull as fraud submissions when the federal income tax withheld exceeds stated income reflecting programming validations.

(31) Exhibit 3.12.8-10 Valid payment codes updated for document code 69 format code 007 when field F equals 191, 291, 195 or 295. Changes made to reflect the new money boxes added to the forms and/or new location of any money amounts shifted for tax year 2021 forms.

(32) Editorial corrections made throughout the text. IPU 21U0005 issued 01-04-2021

Effect on Other Documents

This supersedes IRM 3.12.8 dated November 18, 2020 (effective January 01, 2021). IRM Procedural Updates (IPUs), incorporated into this IRM: IPU 21U0005 issued 01-04-2021, IPU 21U0818 issued 06-09-2021.

Audience

Wage and Investment, Submission Processing, Input Correction Operation, Error Resolution Tax Examiners and Small Business/Self Employed

Effective Date

(01-01-2022)

James L. Fish
Director, Submission Processing
Wage and Investment Division

Program Scope and Objectives

  1. This program corrects inconsistencies in the income documents prior to posting for use by the IRS for a variety of programs and purposes.

  2. Purpose: Instruct on correction of paper register income information return inconsistencies prior to posting to the Information Return Master File (IRMF).

  3. Audience: Submission Processing, Input Correction Operation Tax Examiners, leads and supervisors at all campuses.

  4. Policy Owner: The Director of Submission Processing.

  5. Program Owner: Submission Processing, Paper Processing Branch, Mail Management Data Conversion Section.

  6. Primary Stakeholders: Small Business/Self Employed (SB/SE), Examination Operation, Headquarters Examination.

  7. Program Goals: Correct paper income information return data records failing information return paper processing document (IRPPD) validations in Generalized Mainline Framework (GMF) runs appearing on paper error register.

Background

  1. Filers send paper information returns to IRS to fulfill their information return filing requirement and supply their taxpayer identification number (TIN). IRS converts processable paper returns to electronic data. Data records failing IRPPD validations in GMF runs during the conversion process fall out to paper registers. Error Resolution employees resolve these errors allowing the information to post to Master File.

Authority

  1. Find authority for these procedures in title 26 of the United States Code (USC) or more commonly known as the Internal Revenue Code (IRC), IRC 6721. Amendments to the IRC by acts, public laws, Treasury determinations, rules, and regulations such as the following:

    • The Housing and Economic Recovery Act of 2008

    • American Recovery and Reinvestment Act of 2009

    • Tax Increase Prevention Act of 2014

    • Trade Preferences Extension Act of 2015

    • Surface Transportation and Veterans Health Care Choice Improvement Act of 2015

    • Hiring Incentives to Restore Employment (HIRE) Act

    • The Protecting Americans from Tax Hikes (PATH) Act

    • Emergency Economic Stabilization Act

    • Hiring Incentives to Restore Employment Act

    • Foreign Account Tax Compliance ACT (FATCA)

    • Tax Cuts and Jobs Act of 2017

    Note:

    The above list does not include all the various updates to the IRC.

  2. Policy Statements for Submission Processing located in IRM 1.2.1.4, Policy Statements for Submission Processing Activities.

Roles and Responsibilities

  1. The Director of Submission Processing approves and authorizes the policy present in this IRM.

  2. The Operations manager secures, assigns, and conducts training for the staff who perform the tasks throughout this instruction.

  3. The Planning and Analysis Staff provides feedback and support to local management to achieve and effectively monitor schedules.

  4. The Department and Team manager assign the error register cases to employees, controlling the workflow and timely complete tasks in this IRM.

  5. The employee (Tax Examiner) applies the instruction to complete the paper error register correcting the electronic data record for proper posting to a Master File.

Program Management and Review

  1. Program Reports: Consult IRM 3.12.37, Error Resolution, IMF General Instructions, and IRM 3.12.38, Error Resolution, BMF General Instructions, for control of error registers and Service Center ordering of error register display request cards. Below list error register reports to complete and monitor the error inventory in the Service Center.

    • GMF10-40, Error Display Run Control Report, generates daily as a computer summary of the error processing for the day

    • GMF10-42, Error Register Summary, produced when the error register prints, has the sum totals for each type of error document by parent program number

    • GMF10-43, Daily Error Volume Report, listing of volumes of error records in each program on the error tape (recirculation file)

  2. Program Effectiveness: Management measures goals using documents per hour reports. Each function must complete the required inventory prior to the program completion date stated in IRM 3.30.123, Work Planning and Control, Processing Timeliness: Cycles, Criteria and Critical Dates.

  3. Annual Review: Review the processes included in this manual annually to ensure accuracy and promote consistent tax administration.

Program Controls

  1. Each workday generalized mainline framework (GMF) runs and creates the error register based on Form 6826, Error/Reject Display Request Card, entered by the site. See IRM 3.12.38.2.2, Form 6826 - Service Center Replacement System (SCRS) Error/Reject Display Request Card, and IRM 3.12.37.10, Form 6826, Error/Reject Display Request Card, for instruction on preparation of the sort request.

  2. The daily error volume report (GMF10-43) lists the total volume of error records in each program in Julian date order followed by a summary page reflecting all data records in error.

Terms/Definitions/Acronyms

  1. Terms or acronyms present throughout this instruction below.

    Term/Acronym Definition
    AC Action Code
    ATC Account Type Code
    DLN Document Locator Number
    EIN Employer Identification Number
    FATCA Foreign Account Tax Compliance Act
    GMF Generalized Mainline Framework
    IRP Information Return Program
    ISRP Integrated Submission and Remittance Processing
    MCC Major City Code
    MFT Master File Tax
    Payer Filer of income returns normally listed in section 16
    Payee Taxpayer reported receiving income listed in section 01 and returns other than document code 69
    PMF Payer Master File
    SCCF Service Center Control File
    SCRIPS Service Center Recognition/Image Processing System
    SCRS Service Center Replacement System
    SME Subject Matter Expert
    SSN Social Security Number
    TIN Taxpayer Identification Number
    YYTY Current tax year processed
    YYPY Current processing year
    ZIP Zone Improvement Plan Code

Related Resources

  1. The following lists additional resources to use in conjunction with the instructions found in this IRM.

    • IRM 3.12.37, Error Resolution, IMF General Instructions

    • IRM 3.12.38, Error Resolution, BMF General Instructions

    • IRM 3.10.8, Campus Mail and Work Control, Information Return Processing

    • Document 12990, Records and Information Management Records Control Schedules

  2. Locate IRMs on Servicewide Electronic Research Program (SERP) at the following site: http://serp.enterprise.irs.gov/homepage.html. Specific instructional links available on the BMF ERS / Rejects Research Portal at http://serp.enterprise.irs.gov/databases/portals/sp/bmf/ers/ers.html and the IMF ERS/Rejects Portal located at http://serp.enterprise.irs.gov/databases/portals/sp/imf/ers-rejects/ers-rejects.html.

  3. The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights, and additional information on the Taxpayer Bill of Rights site located at the following location: https://www.irs.gov/taxpayer-bill-of-rights.

General Paper Error Register Correction Procedure

  1. These instructions cover the correction of error registers for the following income information returns processed on paper intake systems Integrated Submission and Remittance Processing (ISRP) and Service Center Recognition/Image Processing System (SCRIPS):

    • Form 1096, Annual Summary and Transmittal of U.S. Information Returns, both current and delinquent processed to the Payer Master File (PMF)

    • Form 1097-BTC, Bond Tax Credit

    • Form 1098, Mortgage Interest Statement

    • Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes

    • Form 1098-E, Student Loan Interest Statement

    • Form 1098-F, Fines, Penalties, and Other Amounts

    • Form 1098-Q, Qualifying Longevity Annuity Contract Information

    • Form 1098-T, Tuition Statement

    • Form 1099-A, Acquisition or Abandonment of Secured Property

    • Form 1099-B, Proceeds From Broker and Barter Exchange Transactions

    • Form 1099-C, Cancellation of Debt

    • Form 1099-CAP, Changes in Corporate Control and Capital Structure

    • Form 1099-DIV, Dividends and Distributions

    • Form 1099-G, Certain Government Payments

    • Form 1099-INT, Interest Income

    • Form 1099-K, Payment Card and Third Party Network Transactions

    • Form 1099-LS, Reportable Life Insurance Sale

    • Form 1099-LTC, Long-Term Care and Accelerated Death Benefits

    • Form 1099-MISC, Miscellaneous Information

    • Form 1099-NEC, Nonemployee Compensation

    • Form 1099-OID, Original Issue Discount

    • Form 1099-PATR, Taxable Distributions Received From Cooperatives

    • Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530)

    • Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

    • Form 1099-S, Proceeds From Real Estate Transactions

    • Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA

    • Form 1099-SB, Seller's Investment in Life Insurance Contract

    • Form 3921, Exercise of an Incentive Stock Option Under Section 442(b)

    • Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c)

    • Form 5498, IRA Contribution Information

    • Form 5498-ESA, Coverdell ESA Contribution Information

    • Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information

    • Form W-2G, Certain Gambling Winnings

  2. This IRM cannot address every possibility present while correcting returns or documents. Consider taxpayer intent. Refer issues with cases not covered to your subject matter expert (SME), lead and/or manager to determine the proper course of action.

  3. Submit request for IRM deviations in writing following instructions from IRM 1.11.2.2, Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevated through appropriate channels for executive approval.

Error Register Format

  1. See IRM 3.12.37.11.2, Error Register Title Line, to determine corresponding fields on raw or loop paper registers.

Program Codes

  1. Program codes listed below as they appear on the error register and the document codes for each program. Document codes processed exclusively on ISRP show an asterisk.

    Program Code Return Type
    Document Codes
    44300 ISRP ENTERED
    • 03*

    • 16*

    • 25*

    • 26*

    • 27*

    • 28

    • 31

    • 32*

    • 43*

    • 50

    • 58

    • 71

    • 72*

    • 73*

    • 74*

    • 75

    • 79

    • 80

    • 81

    • 83

    • 84

    • 85

    • 86

    • 91

    • 92

    • 93*

    • 94*

    • 95

    • 96

    • 97

    • 98

    44310 ISRP ENTERED
    • 69

    • 78*

    44340 SCRIPS ENTERED
    • 28

    • 31

    • 50

    • 58

    • 69

    • 71

    • 75

    • 79

    • 80

    • 83

    • 84

    • 85

    • 86

    • 91

    • 92

    • 95

    • 96

    • 97

    • 98

Information Return Processing Error Reasons Codes

  1. Error reason codes appear in the return header line.

  2. Use these codes as a guide for correcting the error record. Additional errors if present appear other than the one(s) identified by the error reason code.

  3. Error Reason Codes on IRP error register below:

    • 11

    • 14

    • 15

    • 16

    • 17

    • 18

    • 19

    • AA

  4. Error Reason Code 11 indicates one of the following error conditions:

    1. The zone improvement plan (ZIP) Code does not match the state.

    2. The ZIP Code present for a document with a period (.) in the state code field valid only for foreign addresses.

    3. The document has a state with a Major City Code. Clear by deleting the state.

  5. Error Reason Code 14 indicates one of the following error conditions:

    1. The return has an account type code "T" or "J" (foreign information returns) without a foreign country code.

    2. The return has an account type code other than "T" or "J" with a foreign country code present.

  6. Error Reason Code 15 indicates the tax class, document code, or file location code of the payer document locator number (DLN) does not match the document being processed.

  7. Error Reason Code 16 indicates inconsistencies involving money fields due to fraudulent federal income tax withholding or validation errors between money fields present on the return.

    • Form 1099-B, Proceeds From Broker and Barter Exchange Transactions

    • Form 1099-DIV, Dividends and Distributions

    • Form 1099-INT, Interest Income

    • Form 1099-K, Payment Card and Third Party Network Transactions

    • Form 1099-MISC, Miscellaneous Information

    • Form 1099-NEC, Nonemployee Compensation

    • Form 1099-OID, Original Issue Discount

    • Form 1099-PATR, Taxable Distributions Received From Cooperatives

    • Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530)

    • Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

    • Form W-2G, Certain Gambling Winnings

  8. Error Reason Code 17 indicates an error detected by ISRP. When this happens, an error indicator code appears next to one or more of the section numbers. Review the entire document for errors.

  9. Error Reason Code 18 indicates a possible fraudulent Form 1099-MISC, Miscellaneous Information, or Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Use action code 7 to continue processing, or action code 2 with Service Center Control File (SCCF) adjustment indicator D to remove from processing.

    Exception:

    Delete all obvious fraud and secure the entire submission if possible. See Exhibit 3.12.8-9, Signs of Fraud, to assist in data record disposition.

  10. Error Reason Code 19 indicates a possible fraudulent Form 1099-MISC, Miscellaneous Information or Form 1099-NEC, Nonemployee Compensation.

    1. Use action code 7 to continue processing, after checking transcription for accuracy, or

    2. Use action code 2 with SCCF adjustment indicator D to remove from processing.

    Exception:

    Delete all obvious fraud and secure the entire submission if possible. See Exhibit 3.12.8-9, Signs of Fraud, to assist in data record disposition.

  11. Error Reason Code AA indicates an invalid correction attempt. See IRM 3.12.8.2.5, Error Indicators, for invalid correction attempts.

Information Return Processing (IRP) Action Codes (AC)

  1. Enter at least one action code on the error register to correct an error item.

  2. Valid action codes for IRP error registers below:

    • AC 2

    • AC 6

    • AC 7

  3. Action Code 2:

    1. Enter this code to the left of section 01 to delete an entire return. See IRM 3.12.8.2.7, Deleting Error Records, for details on deleting returns from the error register.

    2. Use a SCCF adjustment indicator of D, N, or R after AC 2.

    3. Never use any other action code with AC 2.

  4. Action Code 6:

    1. Enter to the left of the proper section(s) to change data field(s) in a section.

    2. Enter at each section with a correction. At least one field within the section shows correction by lining through the incorrect field(s) and entering the correct data above the lined-out field(s).

    3. Notate on the register the span of documents needing correction if a consecutive correction for section 16 applies to multiple documents.

      Caution:

      Not notating the consecutive changes needed results in improper data entry.

  5. Action Code 7:

    1. Enter this code to the left of section 01 to validate data on the error register as correct.

    2. Use this code to bypass certain validity and consistency checks.

    3. Never use AC 7 with any other action code.

    4. Never use AC 7 when "%%" appears in the document identification line.

      Caution:

      If used, all remaining documents in the block continue to loop on the register until corrected individually.

Error Indicators

  1. The following error indicators represent invalid sections on the error register.

    Error Indicator Number Error Description Condition
    1

    2
    ISRP Error

    Section Length Error
    • Required fields in a section not all present; or

    • The section has more fields than allowed.

    4 Field Length Error
    • Too many characters present in a variable field.

    • Too few characters present in a fixed field.

    • A non-numeric character in the unit position of a right justified field.

    • Non-numeric data in a money field.

    • Assigned to more than one section even though not all sections show an error. Correct all sections in error when this occurs with AC 6. The error indicator number 4 for any section, correct as is, does not clear the first correction attempt. The document loops on the error register. When it loops, clear the document from the error register with AC 7, unless an error not previously corrected requires AC 6.

    G Required Section Not Input Data transcription has deleted a required section.
    5 Duplicate sections entered or entered out of order Data transcription has added sections in addition to screen prompt given.

  2. Use a dummy correction in the section with no error to keep the error from looping.

    Example:

    If error indicator number 4 appears before both sections 01 and 02, but only section 01 has an error, use AC 6 to correct section 01 and an AC 6 to place an entry in section 02 currently present on the record.

    Caution:

    Do not do this on parent document, Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

  3. Enter a hyphen (-) in section 02, field A (Payer Account Number for payee) if the field contains a blank or re-enter the original entry present using an AC 6. This forces a dummy correction to section 02.

    Caution:

    Do not do this on parent document. Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

Account Type Code

  1. Account Type Code (ATC) appears on the error register in the block identification line.

  2. The ATC transcribed appears physically on the Transaction Code box of Form 1332, Block and Selection Record, (or on Form 3893, Re-Entry Document Control) on documents input through ISRP.

  3. ATCs defined below:

    ATC Definition
    B Form 1096 prepared and submitted by the payer. Processed through Integrated Submission and Remittance Processing System (ISRP).
    C Form 1096"Dummy" prepared by IRS because the payer did not submit a Form 1096. Processed through ISRP.
    J Electronically filed returns from a Foreign Treaty Country. Currently not used.
    P The block of returns contains domestic payer(s) processed by ISRP.
    T Paper filed returns from a Foreign Treaty Country payer(s), for Individual Master File (IMF) type payees, and processed by ISRP. Currently not used.
    M Returns processed through SCRIPS and re-input through ISRP.
    S A return processed through SCRIPS.
    Z Code reserved and currently not used.

Deleting Error Records

  1. In general, delete a return from the error tape for only one of the following reasons.

    Error Record Deleted Condition
    Duplicate document locator numbers (DLNs) assigned
    1. If duplicate DLNs appear assigned, delete one of the documents and return it to Receipt and Control for renumbering and re-input. Include the section 16 DLN.

    2. Use AC 2, error/reject disposition code D to delete the return from the error tape.

    Return mis-blocked

    Exception:

    Form 1099-INT, Interest Income, blocked with Form 1099-DIV, Dividends and Distributions.

    1. Prepare Form 4227, Intra-SC Reject or Routing Slip, for re-input. State on the Form 4227 Reinput and attach to the mis-blocked return.

      Reminder:

      Renumbered and re-blocked prior to re-input mis-blocked returns.

    2. Use AC 2, error/reject disposition code N to delete the return from the error tape.

    RCO erroneously sent the return for processing

    Note:

    Find selection criteria in IRM 3.10.8, Information Return Processing.

    1. Delete the return if it does not meet the selection criteria. Prepare Form 4227 according to normal procedures. Notate "Delete" on the Form 4227 and attach to the return deleted.

    2. Use AC 2, error/reject disposition code D to delete the return from the error tape.

    Return with conflicting information and Filer’s intent not clear Use AC 2, error/reject disposition code D to delete the return from the error tape in absence of specific correction instruction present in the IRM or in the section 06 instructions to rectify inconsistency of the form type.
    Fraud Use AC 2, error/reject disposition code D to delete the return from the error tape.

  2. Re-input (with Form 3893, Re-Entry Document Control) using the same DLN originally assigned, deleted Form 1096, Annual Summary and Transmittal of U.S. Information Returns, Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., and Form W-2G, Certain Gambling Winnings. Use AC 2, error/reject disposition code R to delete an item above and re-input with the same DLN unless originally assigned an incorrect DLN.

  3. In certain cases, deleting returns for re-input creates less work even though they meet the selection criteria and contain the correct DLN. To do this, use AC 2, error/reject disposition code R. In these cases, re-input the return without renumbering and re-blocking. Prepare Form 3893, Re-Entry Document Control, and attach to the return(s). In addition, place the Account Type Code, Amended Doc Code (F or G), and payer count in "Trans Code" box. For every return attached to the Form 3893, Re-Entry Document Control, where the payer data changes, edit the 14-digit payer DLN (except foreign returns), payer name and Taxpayer Identification Number (TIN) (also, foreign country code for foreign returns), according to instructions in IRM 3.12.8.6, Section 16 Error Register. Edit the payer's address according to instructions in IRM 3.12.8.6, Section 16 Error Register. Do not edit a foreign payer's address. Account Type Code "S" appears as "M" on Form 3893, Re-Entry Document Control, for re-input through ISRP.

  4. Deleting returns requires an error/reject disposition code. This disposition code automatically adjusts the Service Center Control File (SCCF). Use one of the following codes.

    Code Action Use When:
    D Delete Documents not fit for processing or selectable for sample or with unknown DLN.

    Note:

    Never used for Form 1096, Form 1099-R, or Form W-2G.

    R Reinput A document requires deletion and re-processing using the same DLN.
    N Renumber Document deleted and re-input using a different DLN. Do the following:
    1. Renumber and assign a new DLN.

    2. Place the new DLN above the original DLN in the document ID line and cross out the original DLN.

    3. Enter one of the following master file codes for a document renumbered outside of ISRP:

      • IMF - Individual Master File

      • BMF - Business Master File

      • EPMF - Employee Plans Master File

      • IRAF - Individual Retirement Account File

      • NMF - Non master file

  5. Do not code a new DLN when using error/reject disposition codes D or R. Enter the Master File Tax Code (MFT Code) and error/reject disposition code R on Form 3893, Re-Entry Document Control, for re-input returns with the same DLN. If the MFT requires changing, renumber the document using error/reject disposition code N. If the Account Type Code changed use error/reject disposition code R.

  6. The error/reject disposition code must appear immediately to the right of AC 2.

  7. Notate the error/reject disposition code in the remarks section on Form 4227, Intra-SC Reject or Routing Slip and Form 1332, Block and Selection Record or Form 3893, Re-Entry Document Control.

  8. When deleting a return for re-input edit the 14-digit payer DLN (except foreign returns), payer name, payer address (except for foreign returns), and TIN (also foreign country code for foreign returns).

  9. An error deletion list (SCR 11-45) generates when corrections run against the error file, to show all documents deleted by using AC 2.

  10. Do not release any deleted document to Receipt and Control for DLN renumbering and re-input until it appears on the error deletion list, SCR 11-45.

  11. After verifying a deleted document on the error deletion list, release the document as follows:

    1. For documents deleted with error/reject disposition code D, dispose of the documents per Document 12990, Records and Information Management Records Control Schedules, unless the documents require re-input.

    2. For documents deleted with error/reject disposition code R re-input using Form 3893, Re-Entry Document Control.

  12. Contact the balancing function to resolve the discrepancy identified through the error deletion list (e.g., return renumbered incorrectly, return coded with error/reject disposition code D re-input, etc.).

  13. File the error deletion list in the error resolution function.

Error Register Field Breakers

  1. IRP error registers display plus (+) and minus (-) field breakers.

  2. Code field breakers in section 06 and only then if they need changing:

    1. Use a comma (,) for plus.

    2. Use a pound sign (#) for minus.

Invalid Correction Attempts

  1. Each correction made on the error register goes through computer validity checks. If the correction does not pass these validity checks, the record errors with error reason code AA.

  2. Action codes other than 2, 6, or 7 result in an invalid correction attempt for IRP.

Action Code 2 Invalid Use
  1. Invalid correction attempt when used with any other action code.

  2. Invalid correction attempt when not immediately followed by error/reject disposition code R, N or D.

  3. Invalid correction attempt when entered in any section other than section 01.

  4. Invalid correction attempt when immediately followed by error/reject disposition code R or D and non-blank data in the correction record.

  5. Invalid correction attempt when immediately followed by error/reject disposition code N and:

    1. The correction record lacks a new and valid DLN.

    2. For Form 1096, Annual Summary and Transmittal of U.S. Information Returns, with missing MFT 69 and blank (i.e., shown as a circled 2) for all other income information returns.

    3. The new account type code (if present) contains digits not alphabetic.

Action Code 6 Invalid Use
  1. Invalid correction attempt when used with any other action code except another AC 6.

  2. Invalid correction attempt when the section number of the correction section does not equal 01, 02, 06, or 16 for all IRP documents except for Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

  3. Invalid correction attempt when the section number correction does not equal 01, 02, or 06 for Form 1096.

  4. Invalid correction attempt when used to correct more than one section and the section numbers do not appear in ascending order.

  5. Invalid correction attempt if not immediately followed by an alpha field designator valid for the section corrected.

  6. Invalid correction attempt when the alpha field designators within the correction section do not appear in alphabetic sequence.

  7. Invalid correction attempt when used to change a field not present on the error tape.

  8. Invalid correction attempt when the correction section contains invalid field breakers, or the field(s) contains too many characters (or spaces).

  9. Invalid correction attempt when the correction section does not contain at least one field breaker.

  10. Invalid correction attempt when two identical sections numbers exist within a correction record and both sections do not contain AC 6.

Action Code 7 Invalid Use
  1. Invalid correction attempt when used with any other action code.

  2. Invalid correction attempt when the correction record contains anything other than the error sequence number, section number 01 and AC 7.

Delinquent Transmittals

  1. Process all Form 1096, Annual Summary and Transmittal of U.S. Information Returns, to the Payer Master File (PMF) regardless of when received. Process late transmittals for the current year processed (yyty). Delinquent transmittals up to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ from current year processed (i.e., if yyty equals current year processed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡). Separate blocks by tax year and the tax year in the block header should match the tax year on the transmittals.

Section 01 Error Register

  1. Section 01 of the error register has payee entity data and payer on Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

  2. Below list the fields in Section 01:

    1. Field A, TIN length 9

    2. Field B, TIN Validity Bypass Indicator, length 1

    3. Field C, Name Control, length 4

    4. Field D, Name-Line1, length 40

    5. Field E, Name-Line 2, length 40

    6. Field F, Street Address, length 35

    7. Field G, City, length 22

    8. Field H, State, length 2

    9. Field I, ZIP Code, length 9

  3. To blank a field in Section 01, line through the incorrect data.

Section 01, Field A, Taxpayer Identification Number (TIN)

  1. Validity checks do not run on this field except for Form 1096, Annual Summary and Transmittal of U.S. Information Returns. However, if you notice transcription errors, correct on the error register by lining through the incorrect TIN and entering the correct TIN above it. Payer documents require a TIN.

    Caution:

    NEVER replaced or entered a TIN obtained through research on document codes other than 69. The TIN present on the form passes forward for posting in the data record. Only correction to transcription errors for a document code other than 69 is allowed.

  2. A no-TIN return contains other than nine numerics in the TIN.

  3. Follow the rules for section 16, payer TIN for corrections to Form 1096. See IRM 3.12.8.6, Section 16 Error Register for instructions. Correct section 01, field A, Form 1096, using the section 16 rules found in IRM 3.12.8.6.7, Section 16, Field G, Payer TIN.

Section 01, Field B, Taxpayer Identification Number (TIN) Validity Bypass Code

  1. Only blank allowed.

Section 01, Field C, Name Control (Four Positions)

  1. The Name Control field generates from the first four significant characters in Name Line 1.

    1. Either an alpha or numeric in the first position

    2. A hyphen and ampersand (&) valid in only the second, third, or fourth position

    3. A single alpha or numeric acceptable

    4. A blank in the fourth position

    5. If the third position contains blank, the fourth position requires blank. If a blank in the second position, the third and fourth positions require blanks.

  2. If a name control generated improperly, corrections to the Name Line 1 or reenter Name Line 1 with AC 6. The computer then generates the correct name control. Never change field "C" itself.

Section 01, Field D, Name Line 1

  1. An entry is required for Name Line 1, payee or payer. Valid characters include alpha, hyphen, blank, numeric and ampersand.

  2. Line through an invalid name and enter the correct name above.

  3. If two or more payee names appear on an information return, enter the names as they appear into the Name Line 1. Enter other names identified for entry into the Name Line 2.

  4. If the Name Control (field C) contains all blanks, but the Name Line 1 contains an entry, then line through the entry on Name Line 1 and enter the name above it with AC 6. The Name Control regenerates systemically after re-input of the Name Line 1.

  5. Research using the TIN present to enter a Name Line 1 if not present on the document. Delete the document according to instructions in IRM 3.12.8.2.7, Deleting Error Records, if you cannot find a name. See exceptions below. For the exceptions edit "Unknown" to Name Line 1.

    Exception:

    Form W-2G, Certain Gambling Winnings, and Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., do not follow this rule.

  6. Do not enter a caret for any documents.

  7. In general, the entity located in the upper left-hand part of the return belongs to the payer and the lower left-hand part the payee. Use the table below to assist in locating the correct entity.

    Entity Type Identified on Form
    Payee
    • Beneficiary

    • Borrower

    • Debtor

    • Donor

    • Participant

    • Payee

    • Payer/Borrower

    • Payment Recipient

    • Policy holder

    • Shareholder

    • Student

    • Winner

    • Transferor

    Exception:

    For Form 1098, Recipient/Lender means payer, and Form 1096, contains no payee data.

    Payer
    • Acquirer

    • Corporation

    • Creditor

    • Donee

    • Filer

    • Issuer

    • Lender

    • Payer

    • Trustee/Trust

    Exception:

    For Form 1098, payer/borrower mean payee.

Section 01, Field E, Name Line 2 (Foreign Street Address)

  1. No validity check of this field unless the field includes a foreign street address. Correct this field if you notice transcription errors.

  2. If transcribed in error, line through the erroneous name and enter the correct name above it.

  3. Name Line 2 begins with a percent sign for an in care of name.

  4. Do not delete the second name line for document code 69 if present.

  5. Enter the street address (if present) in Name Line 2 for foreign payee addresses. Identify foreign addresses by a period (.) in the first position of the state field.

Section 01, Field F, Street Address (Foreign City or Province)

  1. The system runs validity and consistency checks on entries in this field on all documents. The valid characters for this field include alpha (A through Z), numeric (0 through 9), hyphen (-), blank ( ), and slash (/).

  2. Correct missing or incorrect entries noticed for all documents.

  3. Enter the single character "Z" as the street address when not present or found on the document.

  4. Use standard abbreviations shown in Exhibit 3.12.8-7, Abbreviations Used in Entity, whenever possible for the street address.

  5. If foreign payee address, enter the foreign city or province and the postal code in the Street Address field. Use abbreviations to limit this entry to 25 positions.

Section 01, Field G, City (Foreign Country)

  1. Alpha characters required for all documents. Correct numerics in the city for a domestic address to alphas.

    Example:

    Correct "29 Palms" to "Twenty nine Palms."

  2. Find Army Post Office (APO), Diplomatic Post Office (DPO) and Fleet Post Office (FPO) edited to the first three positions of the city. When present:

    1. remove any additional or other city information from the field.

    2. the state and ZIP Code must match the military state and ZIP Codes shown in Exhibit 3.12.8-8, Military City, State and Zone Improvement Plan (ZIP) Code.

  3. Major City Codes present.

    1. If a valid Major City Code (MCC), enter the ZIP Code from Exhibit 3.12.8-3, Major City Codes Sorted by Major City, or Exhibit 3.12.8-4, Major Cities Sorted by Major City Code.

    2. If invalid enter the city and state.

  4. Payee foreign address present.

    1. Edit the foreign country in the city field.

    2. Follow instructions in IRM 3.24.37, General Instructions, for entry of foreign returns.

    3. Do not enter a foreign country code. Use abbreviations as necessary to limit this entry to no more than 15 positions.

  5. Enter three "Z" s (e.g., "ZZZ" ) when you cannot determine the city.

Section 01, Field H, State (Foreign Period)

  1. A state entry present requires a valid ZIP Code. Both fields appear in error if not compatible with each other.

  2. State codes outside the valid range appear in error without a corresponding ZIP Code field error (unless in an invalid ZIP Code configuration). Always check the ZIP Code field when correcting the state field. Never assume the ZIP Code correct. Use Exhibit 3.12.8-6, Zone Improvement Plan (ZIP) Code Range Sorted by Code, to determine the correct first three digits.

  3. Blank field I if unable to determine a correct state. Correct the proper fields (H, and/or I).

  4. For foreign addresses (including American Samoa and Panama Canal Zone), edit a period (.) in the first position of the state field.

  5. Correct field H on the error register when the state appears in error unless another correction action corrects the field H problem.

  6. Correct both a valid Major City Code and a state code marked in error by deleting the state code.

  7. If the state code equals "AA, AE, or AP," use the military city, state and ZIP Codes shown in Exhibit 3.12.8-8, Military City, State and Zone Improvement Plan (ZIP) Codes, to determine a valid city and ZIP Code.

Section 01, Field I, Zone Improvement Plan (ZIP) Code

  1. The ZIP Code must:

    1. Requires numerics.

    2. Requires five or nine numerics.

    3. Match the state present. The first three digits in the ZIP Code match the state followed by two numerics other than 00. Add 01 to a field with only three numerics present.

    4. Embedded blanks not allowed.

    5. Requires left justification.

  2. Determine and enter the correct ZIP Code if possible, using Exhibit 3.12.8-6, Zone Improvement Plan (ZIP) Code Range Sorted by Code. Correct field I by entering the first three-digit ZIP Code shown for the state followed by the numerics 01.

  3. Blank out field I, ZIP Code, and field H, State, if you cannot determine the ZIP Code.

  4. A Major City Code (MCC) present on payee documents requires the ZIP Code. Enter a three-digit ZIP Code shown for the MCC followed by the numerics 01.

  5. Foreign addresses require a blank ZIP Code field.

  6. Always verify the ZIP Code for a state, even if only the state field appears in error. Use Exhibit 3.12.8-6, Zone Improvement Plan (ZIP) Code Range Sorted by Code.

  7. If the first three digits of the ZIP Code equals 340, 090 through 098 or 962 through 966, use the military city, state and ZIP Codes shown in Exhibit 3.12.8-8, Military City, State and Zone Improvement Plan (ZIP) Codes, to determine a valid city and state.

Section 02 Error Register

  1. Section 02 of the error register contains additional payee and payer entity data.

  2. Below lists fields in section 02:

    1. Field A, Payer Account

    2. Field B, 2nd TIN not indicator

    3. Field C, Corrected/Amended indicator

    4. Field D, Check digit
      -Any entry invalid. Remove any entry present.

    5. Field E, TIN Type per PMF source.
      -An entry in this field valid only for document code 69 format code 007 with an Account Type Code "S."

Section 02, Field A, Payer Account Number for Payee

  1. No validity check of this field for any payee documents.

  2. Correct transcription errors on the error register when noticed.

  3. Remove any entry made on a payer form document code 69 format code 007.

  4. Document code 69 format code 007 displays an asterisk if this field with an entry. Blank the field to correct.

Section 02, Field B, 2nd TIN not. Indicator

  1. A one-position field/code.

  2. Valid characters consist of a "1" or blank. One (1) is valid on the following document codes : 79, 91, 86, 92, 10, 71, 95, 96, and 97. All other document codes require an entry of blank.

  3. This field is coded "1" if the "2nd TIN not." checkbox is checked or blank if it is not checked.

Section 02, Field C, Corrected/Amended Indicator for Information Return Processing Documents

  1. A one-position field/code.

  2. Valid characters below.

    1. "F" —original document

    2. "G" —"corrected" /"amended" document

      Exception:

      Document code 69 format code 007 is always original. Correct an entry of "G" to "F."

  3. If this field is correctly coded a "G," a document can contain no money amounts.

  4. If this field is correctly coded a "F," the document must contain at least one money amount except for the following:

    1. Form 1098-T, Tuition Statement, document code 83.

    2. Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., document code 98.

    3. Form 1099-MISC, Miscellaneous Information, document code 95 with a Direct Sales indicator of "1."

    4. Form 1099-NEC, Nonemployee Compensation, document code 71 with a Direct Sales indicator of "1."

    5. Any form type with a FATCA filing requirement indicator of "1."

    6. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, document code 69.

  5. If the indicator is an "F" and accurate and zero money amounts present, delete the document using AC 2 and error/reject disposition code "D," except for the income information returns outlined in paragraph four above.

Section 02, Field D, Check Digit for Form 1096, Annual Summary and Transmittal of U.S. Information Returns

  1. Blank any entry.

Section 02, Field E, Taxpayer Identification Number (TIN) Type for Payer Master File (PMF)

  1. This is a one-position field.

  2. This field only causes an error condition for SCRIPS processed labeled Form 1096, Annual Summary and Transmittal of U.S. Information Returns, Account Type Code "S."

  3. Payee documents and ISRP processed Form 1096 (Account Type Code "B, C or M" ) require blanks in this field.

  4. Valid characters include:

    1. 1 for BMF

    2. 2 for IMF

    3. 3 for EPMF

    4. 4 for NMF

  5. Input AC 7 to clear if the TIN type appears correct.

  6. Input AC 6 to correct an error or remove the invalid entry.

  7. An incorrect TIN type causes an error condition in the TIN type field and check digit field.

Section 06 Error Register

  1. Section 06 of the error register contains money amounts, indicators, and descriptions.

  2. Do not code a breaker for a money amount field unless the correction made changes it from negative to positive or from positive to negative.

  3. Money amounts maximum length of 12 positions.

  4. Money amount fields reflect dollars only and require all numerics (including zero).

  5. Indicator and description fields can contain alpha or numeric characters.

  6. Returns transcribed with a money amount(s) of one million dollars or greater, or losses equal to or greater than (10,000) fall to the error register for "physical" review. Review transcription. If transcribed correctly and the documents do not meet fraudulent criteria, use AC 7. If the documents appear fraudulent delete the data record.

    Note:

    Obtain returns with Account Type Code "S" from the SCRIPS.

  7. Correct the field(s) on the error register in error in field "A" through "U." This includes changing a blank required money amount field to zero if a zero should entered. Before changing a blank to zero, verify no significant money amount exists on the document. To zero a field, line through the incorrect data and edit one zero above the incorrect data.

    Example:

    Change to zero a money amount in a money field less than one dollar. Do not consider cents from .01 up to .99 a significant money amount and do not rounded up or down.

  8. If the return does not contain a significant money amount and does not fall to an exception below delete the data record with AC 2 and error/reject disposition code "D." Returns require a significant amount (greater than 99 cents) in at least one of the required money fields if selected for processing except for items listed below:

    1. If you cannot determine illegible money amounts, delete the record and route to IRP sort unit to correspond as outlined in IRM 3.10.8.5.2, Review of Information Returns.

    2. Accept zero amounts in all money fields for corrected/amended returns. A corrected or amended return has a mark in the corrected box on the face of the form and section 02 field C contains "G."

      Caution:

      Ensure the correction box on the form is marked before changing section 02, field C, from "F" (original return) to "G," (corrected return).

    3. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmittal does not include a corrected box, always an original document and accepts zero money amounts in section 06.

    4. Accept zero amounts in all money fields if a direct sales indicator of "1."

    5. Accept zero amounts in all money fields when a FATCA filing requirement indicator of "1" exists.

    6. If for all form types box 4, "Federal income tax withheld," is the only money amount on the return, delete the return using AC 2 and error/reject disposition code "D."

      Exception:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  9. Money amounts correction instruction and explanations appear in the subsections below and in document code order.

  10. Exhibit 3.12.8-1, Information Return Processing Format Codes and Required Section 06 Fields for Returns, and Exhibit 3.12.8-2, Information Return Processing Section 06 Fields Transcribed or Scanned, shows the required fields and box (line) numbers the fields represent for the returns.

  11. Correct erroneous negative amounts as follows:

    1. If the negative amount present resulted from a transcription error, correct the field using AC 6.

    2. If a negative amount appears erroneously edited or entered, change the field to zero using AC 6. However, if the correction to zero results in all required money amounts being zero then refer to IRM 3.12.8.5 (8), Section 06 Error Register, above to determine if the record requires deleting.

  12. Verify conversion of prior year Form 1096 to the correct processing year format.

  13. Do a cursory review of the section 06 money amounts. Correct using AC 6 any amounts with errors in transcription.

  14. If a filer enters more than one amount in a box, enter the total of the two amounts.

  15. Review all errors for input (transcription) errors. Correct transcription errors using AC 6. Use AC 7 to clear records without errors.

  16. If a taxpayer enters a negative amount for a positive only field, enter zero.

  17. Unused alpha field designators no longer print in this section.

Section 06 Document Code 03 Format Code 360, Form 1098-F, Fines, Penalties, and Other Amounts

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Total amount required to be paid."

    2. Accept only positive (including zero) amounts.

  2. Field B, Money amount 2

    1. Money amount located in box 2, "Restitution/remediation amount."

    2. Accept only positive (including zero) amounts.

  3. Field C, Money amount 3

    1. Money amount located in box 3, "Compliance amount."

    2. Accept only positive (including zero) amounts.

  4. Field D, Box 4

    1. Entry from box 4, "Date of order/agreement."

    2. Valid format equals YYYYMMDD.

    3. If the date is not entered in the correct format, enter it in YYYYMMDD format.

    4. Enter the day of "01" to the YYYYMM present if a valid MM and YYYY appear with no DD.

    5. Blank acceptable.

  5. Field E, Box 5

    1. Entry from box 5, "Jurisdiction."

    2. This field contains up to 39 alpha and/or numeric characters.

    3. For descriptions longer than 39 characters, abbreviate where possible; otherwise, delete the right most characters more than 39.

    4. Blank acceptable.

  6. Field F, Box 6

    1. Entry from box 6, "Case number."

    2. This field contains up to 39 alpha and/or numeric characters.

    3. For descriptions longer than 39 characters, abbreviate where possible; otherwise, delete the right most characters more than 39.

    4. Blank acceptable.

  7. Field G, Box 7

    1. Entry from box 7, "Name or description of matter/suit/agreement."

    2. For entries longer than 39 characters, abbreviate where possible; otherwise, delete the right most characters more than 39.

    3. Blank acceptable.

  8. Field H, Box 8

    1. Entry from box 8, "Code."

    2. Allow six or less alpha characters.

    3. Delete any characters other than the valid entries A, B, C, D, E, F, G, H, or I.

    4. Correct entries to sequential order.

  9. Field I through U require blanks.

Section 06 Document Code 10 Format Code 037, Form 1099-K, Payment Card and Third Party Network Transactions

  1. Field A, Checkbox located under the entity data on the left.

    1. Valid character for "PSE" box marked is "1."

    2. Valid character for "EPF/TP" box marked is "2."

    3. Blank is valid if flier intent is not determined.

  2. Field B, Checkbox located under the filers data on the left next to field A.

    1. Valid character for "Payment card" box marked is "1."

    2. Valid character for "Third party network" box marked is "2."

    3. Blank is valid if filer intent is not determined.

  3. Field C, Money amount 1

    1. Money amount located in box 1a, "Gross amount of payment card/third party network transactions."

    2. Accept only positive (including zero for corrected documents) amounts.

    3. Total money entered in box 1a should equal the sum of the entries for box 5a through 5l.

      Note:

      If box 1a is the only error do the following:
      check transcription for box 1a and boxes 5a through 5l,
      replace negative money amount in 5a through 5l with zero,
      add box 5a through 5l,
      adjust box 5a (or the first amount present) to correct tolerance error.

    4. Enter the total amount in box 1a in box 5a if box 1a has a positive entry and box 5a through 5l s zeros or blanks.

    5. Enter the total amount in box 1b in box 1a if 1b has a positive entry and 1a is blank. See IRM 3.12.8.5.2 (3) c) above for additional instruction.

    6. Delete (AC 2D) the return if filer intent is unclear because 1a is significantly less than the combined total of 5a through 5l combined. See IRM 3.12.8.2.7 (1) for this general instruction.

  4. Field D, Money amount 2

    1. Money amount located in box 1b, "Card Not Present transactions."

    2. Accept only positive (including zero for corrected documents) amounts.

    3. Total money entered in box 1b is part of the amount in box 1a.

    4. Enter the total amount in box 1b in box 5a if box 1b has a positive entry and box 1a and 5a through 5l has zeros or blanks.

    5. Delete (AC 2D) the return if filer intent is not established because 1b is significantly less than the combined total of 5a through 5l combined. See IRM 3.12.8.2.7 (1) for this general instruction.

  5. Field E, Box 2

    1. Entry from box 2, "Merchant category code."

    2. This field is a four-position numeric field.

    3. Blank is acceptable.

  6. Field F, Box 3

    1. Entry from box 3, "Number of payment transactions."

    2. This field is a numeric field.

    3. Blank is acceptable.

  7. Field G, Money amount 3

    1. Money amount located in box 4, "Federal income tax withheld."

    2. Delete the data record when the field amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of field C, error reason code 16 is present and fields C and G show as marked in error. See IRM 3.12.8.2.7, Deleting Error Records, and Exhibit 3.12.8-9, Signs of Fraud, for instruction.

    3. Accept only positive (including zero) amounts.

    4. This field is less than field C.

  8. Field H, Money amount 4

    1. Money amount located in box 5a, "January."

    2. Accept only positive (including zero) amounts.

  9. Field I, Money amount 5

    1. Money amount located in box 5b, "February."

    2. Accept only positive (including zero) amounts.

  10. Field J, Money amount 6

    1. Money amount located in box 5c, "March."

    2. Accept only positive (including zero) amounts.

  11. Field K, Money amount 7

    1. Money amount located in box 5d, "April."

    2. Accept only positive (including zero) amounts.

  12. Field L, Money amount 8

    1. Money amount located in box 5e, "May."

    2. Accept only positive (including zero) amounts.

  13. Field M, Money amount 9

    1. Money amount located in box 5f, "June."

    2. Accept only positive (including zero) amounts.

  14. Field N, Money amount 10

    1. Money amount located in box 5g, "July."

    2. Accept only positive (including zero) amounts.

  15. Field O, Money amount 11

    1. Money amount located in box 5h, "August."

    2. Accept only positive (including zero) amounts.

  16. Field P, Money amount 12

    1. Money amount located in box 5i, "September."

    2. Accept only positive (including zero) amounts.

  17. Field Q, Money amount 13

    1. Money amount located in box 5j, "October."

    2. Accept only positive (including zero) amounts.

  18. Field R, Money amount 14

    1. Money amount located in box 5k, "November."

    2. Accept only positive (including zero) amounts.

  19. Field S, Money amount 15

    1. Money amount located in box 5l, "December."

    2. Accept only positive (including zero) amounts.

  20. Field T and U require blanks.

Section 06 Document Code 16 Format Code 361, Form 1099-LS, Reportable Life Insurance Sale

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Amount paid to payment recipient."

    2. Accept only positive (including zero) amounts.

  2. Field B, Box 2

    1. Entry from box 2, "Date of sale."

    2. Valid format equals YYYYMMDD.

    3. If the date is not entered in the correct format, enter it in YYYYMMDD format.

    4. If the date year is entered incorrectly by the filer, change the year to equal current tax year processed (processing year minus one).

    5. Enter the day of "01" to the YYYYMM present if a valid MM and YYYY appear with no DD.

    6. Blank acceptable.

  3. Field C

    1. Entry from box, "Issuer’s name."

    2. This field contains up to 39 alpha and/or numeric characters.

    3. For descriptions longer than 39 characters, abbreviate where possible; otherwise, delete the right most characters more than 39.

    4. There is no validity check for this field.

    5. Blank acceptable.

  4. Field D through U require blanks.

Section 06 Document Code 25 Format Code 048, Form 3921, Exercise of an Incentive Stock Option Under Section 442(b)

  1. Field A, Box 1

    1. Date present in box 1, "Date option granted."

    2. Valid format equals YYYYMMDD.

    3. If the field states "various," contains multiple dates or incomplete dates then mirror box 2.

  2. Field B, Box 2

    1. Date present in box 2, "Date option exercised."

    2. Valid format equals YYYYMMDD.

  3. Field C, Money amount 1

    1. Money amount located in box 3, "Exercise price per share."

    2. Accept only positive (including zero) amounts. See also IRM 3.12.8.5 (8), Section 06 Error Register, if no significant money amounts on the document.

  4. Field D, Money amount 2

    1. Money amount located in box 4, "Fair market value per share on exercise date."

    2. Accept only positive (including zero) amounts.

    3. Field C or field D must contain a significant amount in at least one of the required money fields if the return is not an amended return. Delete the return if no significant money amount exists on an original return (not amended). Refer to IRM 3.12.8.5 (8), Section 06 Error Register, for instruction.

  5. Field E, Box 5

    1. Entry from box 5, "No. of shares transferred."

    2. Accept only positive (including zero) numbers.

  6. Field F, Box 6

    1. Description located in box 6, "If other than Transferor, Name/Address/EIN."

    2. This field can contain up to 39 alpha and/or numeric characters.

    3. For entries longer than 39 characters, abbreviate where possible; otherwise, delete the address but ensure the name and TIN remain intact.

    4. No validity check for this field.

    5. Blank acceptable.

  7. Field G through U require blanks.

Section 06 Document Code 26 Format Code 049, Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c)

  1. Field A, Box 1

    1. Date present in box 1, "Date option granted."

    2. Valid format equals YYYYMMDD.

    3. If the field states "various," contains multiple dates or incomplete dates then mirror box 2.

  2. Field B, Box 2

    1. Date present in box 2, "Date option exercised."

    2. Valid format equals YYYYMMDD.

  3. Field C, Money amount 1

    1. Money amount located in box 3, "Fair market value per share on grant date."

    2. Accept only positive (including zero) amounts. See also IRM 3.12.8.5 (8), Section 06 Error Register, if no significant money amounts present on the document.

  4. Field D, Money amount 2

    1. Money amount located in box 4, "Fair market value per share on exercise date."

    2. Accept only positive (including zero) amounts. See also IRM 3.12.8.5 (8), Section 06 Error Register, if no significant money amounts present on the document.

  5. Field E, Money amount 3

    1. Money amount located in box 5, "Exercise price paid per share."

    2. Accept only positive (including zero) amounts.

  6. Field F, Box 6

    1. Number located in box 6, "No. of shares transferred."

    2. Field cannot contain more than 12 numbers.

    3. Blank acceptable

  7. Field G, Box 7

    1. Date present in box 7, "Date legal title transferred."

    2. Valid format equals YYYYMMDD.

  8. Field H, Money amount 4

    1. Money amount located in box 8, "Exercise price per share determined as if the option was exercised on the date shown in box 1."

    2. Accept only positive (including zero) amounts.

    3. Field C, D, E, or H must contain a significant amount in at least one of the required money fields if the return if not an amended return. Delete the return if no significant money amount exists on an original return (not amended). Refer to IRM 3.12.8.5 (8) (a), Section 06 Error Register, for instruction.

  9. Field I through U require blanks.

Section 06 Document Code 27 Format Code 023, Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Employee or self-employed person's Archer MSA contributions made in yyty and yyty+1 for yyty."

    2. Accept only positive (including zero) amounts.

  2. Field B, Money amount 2

    1. Money amount located in box 2, "Total contributions made in yyty."

    2. Accept only positive (including zero) amounts.

  3. Field C, Money amount 3

    1. Money amount located in box 3, "Total HSA or Archer MSA contributions made in yyty+1 for yyty."

    2. Accept only positive (including zero) amounts.

  4. Field D, Money amount 4

    1. Money amount located in box 4, "Rollover contributions not included in boxes 1, 2, or 3."

    2. Accept only positive (including zero) amounts.

  5. Field E, Money amount 5

    1. Money amount located in box 5, "Fair market value of HSA, Archer MSA, or MA MSA."

    2. Accept only positive (including zero) amounts.

  6. Field F, Box 6

    1. Entry from box 6, "HSA, Archer MSA, or MA MSA" checkboxes.

    2. The valid code 1 "HSA."

    3. The valid code 2 "Archer MSA."

    4. The valid code 3 "MA MSA."

    5. Blank if no box or multiple boxes checked.

  7. Field G through U require blanks.

Section 06 Document Code 28 Format Code 022, Form 5498, IRA Contribution Information

  1. Field A, Money amount 1

    1. Money amount located in box 1, "IRA contributions (other than amounts in boxes 2-4, 8-10, 13a and 14a)."

    2. Accept only positive (including zero) amounts.

  2. Field B, Money amount 2

    1. Money amount located in box 2, "Rollover contributions."

    2. Accept only positive (including zero) amounts.

  3. Field C, Money amount 3

    1. Money amount located in box 3, "Roth IRA conversion amount."

    2. Accept only positive (including zero) amounts.

  4. Field D, Money amount 4

    1. Money amount located in box 4, "Recharacterized contributions."

    2. Accept only positive (including zero) amounts.

  5. Field E, Money amount 5

    1. Money amount located in box 5, "Fair market value of account."

    2. Accept only positive (including zero) amounts.

  6. Field F, Money amount 6

    1. Money amount located in box 6, "Life insurance cost included in box 1."

    2. Accept only positive (including zero) amounts.

  7. Field G, Box 7

    1. Entry from checkboxes for IRA/SEP/SIMPLE/ROTH IRA.

    2. The valid code 1 "IRA."

    3. The valid code 2 "SEP."

    4. The valid code 3 "SIMPLE."

    5. The valid code 4 "ROTH IRA."

    6. Blank if no box or multiple boxes checked.

  8. Field H, Money amount 7

    1. Money amount located in box 8, "SEP contributions."

    2. Accept only positive (including zero) amounts.

  9. Field I, Money amount 8

    1. Money amount located in box 9, "SIMPLE contributions."

    2. Accept only positive (including zero) amounts.

  10. Field J, Money amount 9

    1. Money amount located in box 10, "Roth IRA contributions."

    2. Accept only positive (including zero) amounts.

  11. Field K, Box 11

    1. Entry for checkbox 11 "Check if RMD for yyty."

    2. The valid code is 1 when the box is checked.

    3. Blank is valid if the box is not checked.

  12. Field L, Box 12a

    1. Date present in box 12a, "RMD date."

    2. Valid format equals YYYYMMDD.

    3. Blank acceptable.

  13. Field M, Money amount 10

    1. Money amount located in box 12b, "RMD amount."

    2. Accept only positive (including zero) amounts.

  14. Field N, Money amount 11

    1. Money amount located in box 13a, "Postponed/late contrib."

    2. Accept only positive (including zero) amounts.

  15. Field O, Box 13b

    1. Entry for year in box 13b, "Year."

    2. YYYY is the required format.

    3. Blank acceptable.

  16. Field P, Box 13c

    1. Code present in box 13c, "Code."

    2. Delete entries not equal to "PL" or "EO" followed by six numerics or "FD" or "SC" without numerics.

    3. Blank acceptable.

  17. Field Q, Money amount 12

    1. Money amount located in box 14a, "Repayments."

    2. Accept only positive (including zero) amounts.

  18. Field R, Box 14b

    1. Code present in box 14b, "Code."

    2. Delete entries not equal to "BA, QR, or DD."

    3. Blank acceptable.

  19. Field S, Money amount 13

    1. Money amount located in box 15a, "FMV of certain specified assets."

    2. Accept only positive (including zero) amounts.

  20. Field T, Box 15b

    1. Code present in box 15b, "Code(s)."

    2. Allow up to two of the following: "A, B, C, D, E, F, or G." Characters must not repeat in the field.

      Example:

      "AB, AC, CG, B, BG, F, or G" may remain.

    3. Remove one character if two matching characters appear in the field.

      Example:

      Change an entry of "CC" to "C."

    4. Delete entries of more than two valid codes and enter "H" as the entry.

      Example:

      Remove "ABC or BDE," and replace with an entry of "H."

    5. Delete any code present with "H" and leave the "H."

      Example:

      Replace entries such as "AH, BH, or CH" with "H."

    6. Blank acceptable.

    7. Blank the field when it contains only invalid entries.

  21. Field U requires a blank.

Section 06 Document Code 31 Format Code 031, Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530)

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Gross distribution."

    2. Accept only positive (including zero) amounts.

    3. If this field is the only field in error, and field A, B and C entries match the entries on the return, clear the error using AC 7.

  2. Field B, Money amount 2

    1. Money amount located in box 2, "Earnings."

    2. Accept only positive (including zero) amounts.

  3. Field C, Money amount 3

    1. Money amount located in box 3, "Basis."

    2. Accept only positive (including zero) amounts.

  4. Field D, Box 4

    1. Entry for checkbox 4, "Trustee-to-trustee transfer."

    2. The valid code is 1 if box is checked.

    3. Blank valid if not checked.

  5. Field E, Box 5

    1. Entry from box 5 checked for "Distribution is from:" as the title.

    2. The valid code is 1 if "Private" box is checked.

    3. The valid code is 2 if "State" box is checked.

    4. The valid code is 3 if "Coverdell ESA." box is checked.

    5. Blank if no or multiple boxes contain marks.

  6. Field F, Box 6

    1. Entry for checkbox 6, "Check if the recipient is not the designated beneficiary."

    2. The valid code is 1 if box is checked.

    3. Blank valid if not checked.

  7. Field G through U require blanks.

Section 06 Document Code 32 Format Code 010, Form W-2G, Certain Gambling Winnings

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Reportable winnings."

    2. Accept only positive (including zero) amounts.

  2. Field B, Box 2

    1. Date from box 2, "Date won."

    2. Valid format equals YYYYMMDD.

    3. Blank acceptable.

    4. If the date is entered incorrectly by the filer, and it is clear the intent is for the current year processed then change the year to equal current tax year processed.

  3. Field C, Money amount 2

    1. Money amount located in box 4, "Federal income tax withheld."

    2. Accept only positive (including zero) amounts.

    3. This field is less than the sum of fields A and field D.

    4. Delete the data record if the field ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the sum of fields A and D, error reason code 16 is present and fields A, C, and D have an asterisk. See IRM 3.12.8.2.7, Deleting Error Records, and Exhibit 3.12.8-9, Signs of Fraud, for instruction.

  4. Field D, Money amount 3

    1. Money amount located in box 7, "Winnings from identical wagers."

    2. Accept only positive (including zero) amounts.

  5. Field E through U require blanks.

Section 06 Document Code 43 Format Code 362, Form 1099-SB, Seller's Investment in Life Insurance Contract

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Investment in contract."

    2. Accept only positive (including zero) amounts.

  2. Field B, Money amount 2

    1. Money amount located in box 2, "Surrender amount."

    2. Accept only positive (including zero) amounts.

  3. Field C

    1. Entry from box 2, "Issuer’s information contact name."

    2. This field can contain up to 39 alpha and/or numeric characters.

    3. For descriptions longer than 39 characters, abbreviate where possible; otherwise, delete the right most characters more than 39.

    4. No validity check for this field.

    5. Blank acceptable.

  4. Field D through U require blanks.

Section 06 Document Code 50 Format Code 050, Form 1097-BTC, Bond Tax Credit

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Total."

    2. Accept only positive (including zero) amounts.

    3. Total money entered in box 1 should equal the sum of the entries for box 5a through 5l.

      Note:

      If box 1 is the only error do the following:
      check transcription for box 1 and boxes 5a through 5l,
      replace negative money amount in 5a through 5l with zero,
      add box 5a through 5l,
      adjust box 5a (or the first amount present) to correct tolerance error.

    4. Enter the total amount in box 1 in box 5a if box 1 contains a positive entry and box 5a through 5l do not contain amounts.

    5. Enter the total of box 5a through 5l in box 1 if box 1 is blank.

    6. Delete (with AC 2D) the return if unable to determine filer intent because box 1 is significantly less than the combined total of 5a through 5l. See IRM 3.12.8.2.7 (1) for this general instruction.

  2. Field B, Box 2a

    1. Entry from box 2a, "Code."

    2. One alpha character acceptable.

    3. Valid alpha characters include only A, C, or O.

    4. Blanks acceptable.

  3. Field C, Box 2b

    1. Alpha and/or numeric entry from box 2b, "Unique Identifier."

    2. This field can contain up to 39 alpha or numeric characters.

    3. For entries longer than 39 characters, abbreviate where possible; otherwise, delete the right most characters more than 39.

    4. No validity check for this field.

    5. Blanks acceptable.

  4. Field D, Box 3

    1. Entry from box 3, "Bond type."

    2. This field is 3 characters long (blanks accepted).

    3. Valid entries include only 101, 199 and blank.

  5. Field E, Money amount 2

    1. Money amount located in box 5a, "January."

    2. Accept only positive (including zero) amounts.

  6. Field F, Money amount 3

    1. Money amount located in box 5b, "February."

    2. Accept only positive (including zero) amounts.

  7. Field G, Money amount 4

    1. Money amount located in 5c, "March."

    2. Accept only positive (including zero) amounts.

  8. Field H, Money amount 5

    1. Money amount located in box 5d, "April."

    2. Accept only positive (including zero) amounts.

  9. Field I, Money amount 6

    1. Money amount located in box 5e, "May."

    2. Accept only positive (including zero) amounts.

  10. Field J, Money amount 7

    1. Money amount located in box 5f, "June."

    2. Accept only positive (including zero) amounts.

  11. Field K, Money amount 8

    1. Money amount located in box 5g, "July."

    2. Accept only positive (including zero) amounts.

  12. Field L, Money amount 9

    1. Money amount located in box 5h, "August."

    2. Accept only positive (including zero) amounts.

  13. Field M, Money amount 10

    1. Money amount located in box 5i, "September."

    2. Accept only positive (including zero) amounts.

  14. Field N, Money amount 11

    1. Money amount located in box 5j, "October."

    2. Accept only positive (including zero) amounts.

  15. Field O, Money amount 12

    1. Money amount located in box 5k, "November."

    2. Accept only positive (including zero) amounts.

  16. Field P, Money amount 13

    1. Money amount located in box 5l, "December."

    2. Accept only positive (including zero) amounts.

  17. Field Q

    1. Entry for checkbox located at the lower left-hand side of the document under the recipient’s entity information.

    2. Valid entries include:
      1 for the first box checked
      2 for the second box checked

    3. If blank enter "1."

    4. If the invalid character of "3" secure the document and correct the entry as "1" or "2" depending on taxpayer intent. When you cannot determine filer intent enter "1."

  18. Field R through U require blanks.

Section 06 Document Code 69 Format Code 007, Form 1096, Annual Summary and Transmittal of U.S. Information Returns

  1. Field A

    1. This field should reflect the number of original documents transmitted by the Form 1096, Annual Summary and Transmittal of U.S. Information Returns. This is not a money field.

    2. For Account Type Code B, C, or M Form 1096 this entry appears before a slash (/) in box 3 ("25/" ). If the numbers agree, input AC 7.

    3. Accept only positive (including zero) amounts.

    4. For Account Type Code S Form 1096 the entry in this field is calculated by the scanner and may not match the entry in box 3. If this field is zero on an Account Type Code S Form 1096 and field B is also zero, enter 1 in field A.

    5. This field is greater than or equal to field I, Original Documents Subject to Penalty. If not, both field A and field I appear in error.

    6. Form 1096 transmitting more than 998 payee documents appear in the error register on the first pass only.

  2. Field B

    1. This field should reflect the number of amended detail documents transmitted by the Form 1096. This is not a money field.

    2. For Account Type Code B, C, or M Form 1096 this entry is coded after a slash (/) in box 3 (i.e., "/25" ). If the numbers agree, input AC 7.

    3. Accept only positive (including zero) amounts.

    4. For Account Type Code S Form 1096 the entry in this field is calculated by the scanner and may not match the entry in box 3.

    5. This field is greater than or equal to field J, Amended Documents Subject to Penalty. If not, both field B and field J appear in error.

    6. Form 1096 transmitting more than 998 payee documents appear in the error register on the first pass only.

  3. Field C, Money amount 1

    1. Money amount located in box 4, "Federal income tax withheld."

    2. This field is equal to or greater than zero.

  4. Field D, Money amount 2

    1. Money amount located in box 5, "Total amount reported with this Form 1096."

    2. This field is equal to or greater than zero.

  5. Field E

    1. This field contains the TIN type and return code. It appears edited immediately before the preprinted or edited return code identifying the type of returns transmitted for ISRP processed returns. SCRIPS processed returns auto generate the field.

    2. The valid TIN type code 1 equals Employer Identification Number (EIN).

    3. The valid TIN type code 2 equals SSN.

    4. This field contains one of the following three-digit combinations.

      Exception:

      If no form type marked in box 6 to state the form type transmitted and you cannot determine by notations on the face of the document enter "195" or "295" depending on the TIN type code.

      Return Type TIN Type/Return Code
      Form 1097-BTC 150 or 250
      Form 1098 181 or 281
      Form 1098-C * 178 or 278
      Form 1098-E 184 or 284
      Form 1098-F * 103 or 203
      Form 1098-Q * 174 or 274
      Form 1098-T 183 or 283
      Form 1099-A 180 or 280
      Form 1099-B 179 or 279
      Form 1099-C 185 or 285
      Form 1099-CAP 173 or 273
      Form 1099-DIV 191 or 291
      Form 1099-G 186 or 286
      Form 1099-INT 192 or 292
      Form 1099-K 110 or 210
      Form 1099-LS * 116 or 216
      Form 1099-LTC * 193 or 293
      Form 1099-MISC 195 or 295
      Form 1099-NEC 171 or 271
      Form 1099-OID 196 or 296
      Form 1099-PATR 197 or 297
      Form 1099-Q 131 or 231
      Form 1099-R 198 or 298
      Form 1099-S 175 or 275
      Form 1099-SA * 194 or 294
      Form 1099-SB * 143 or 243
      Form 3921 * 125 or 225
      Form 3922 * 126 or 226
      Form 5498 128 or 228
      Form 5498-ESA * 172 or 272
      Form 5498-SA * 127 or 227
      Form W-2G * 132 or 232

      Note:

      An asterisk (*) denotes a form type processed exclusively by ISRP.

    5. Form 1096 processed through SCRIPS (Account Type Code "S" in the document header) contain a "5" for the first character if the TIN did not data captured from box 1 or 2 of the transmittal by the SCRIPS system. Correct by researching and entering the correct number above.

  6. Field F, Payment Code(s) is always alpha and in ascending order. Characters never repeat. If the payment code field is in error on an ISRP entered form remove the invalid entry(s) using Exhibit 3.12.8-10, Valid Payment Codes.

    1. Payment code "Z" is used for anyForm 1096 transmitting only "amended" or FATCA marked detail documents with no money amounts.

    2. ISRP entered documents require data in this field for the following returns (data is optional for other form types): Form 1099-DIV, Form 1099-G, Form 1099-MISC, and Form 1099-NEC. Payment codes appear edited to the right of box 6 on ISRP processed returns. If no payment code exists and the field appears in error enter the first valid payment code in bold using Exhibit 3.12.8-10, Valid Payment Codes.

    3. SCRIPS entered documents (Account Type Code "S" ) require payment code(s) for all Form 1096 processed by the SCRIPS system.

      Reminder:

      Contact the local analyst immediately if invalid payment codes on Account Type Code "S" documents appear on raw registers.

  7. Field G, Delinquent Return Indicator and Date

    1. Locate these entries if in the first seven boxes under the wording "For Official Use Only" or the date derived from the IRS received date stamp in the "For Official Use Only" box.

    2. If a delinquent return indicator is "P" or "X," a valid date must follow. If the delinquent date is not present locate the valid delinquent date on the return using the table below. Valid format equals YYYYMMDD, where YYYY equals the processing year (or the processing year minus 1) MM equals 01 through 12 and DD equals 01 through 31.

      Delinquent Indicator Valid Date Range
      P ≡ ≡ ≡ ≡ ≡ ≡ ≡ through 2022/12/31

      Exception:

      If field E is:
      103 or 203 blank the field.
      171 or 271 then ≡ ≡ ≡ ≡ ≡ ≡ ≡ through 2022/12/31 is valid.
      127, 227, 128, 228, 172, or 272 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ through 2022/12/31 is valid.

      X ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ through 2022/12/31

      Exception:

      If field E is:
      103 or 203 blank the field.
      171 or 271 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ through 2022/12/31 is valid.
      127, 227, 128, 228, 172, or 272 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ through 2022/12/31 is valid.

    3. Accept only the following entries for the delinquent return indicator for an Account Type Code B or C Form 1096; ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    4. Accept only the following entries for an Account Type Code S Form 1096, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    5. If the delinquent return indicator is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

  8. Field H, Correspondence Indicators

    1. This entry, if present, is in the last two boxes under the wording "For Official Use Only."

    2. Accept only 99, and blank. If you cannot determine a correct indicator blank the field.

    3. If the form is "Prepared by the IRS" on the signature line place code "99" in the correspondence indicator.

  9. Field I, Original Documents Subject to Penalty

    1. The entry for Account Type Code "B" and "C" documents is found in the bottom-left corner of the Form 1096. The number is coded before a slash (/) (i.e., "25/" ).

    2. The field for Account Type Code "S" is not present on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns. SCRIPS computes the entry.

    3. The field is equal to or less than field A. If not, both field A and field I appear in error.

    4. Accept only positive (including zero) amounts.

    5. If field I is in error on Account Type Code "S" documents in a raw register, notify your campus staff analyst and supply examples for forwarding to the IRP Analyst.

  10. Field J, Amended Documents Subject to Penalty

    1. The entry for Account Type Code "B" and "C" documents is in the bottom-left corner of the Form 1096. The number is coded after a slash (/) (i.e., "/25" ).

    2. The field for Account Type Code "S" is not present on the Form 1096. The entry is computed by SCRIPS systemically.

    3. If field J is in error on Account Type Code "S" documents in raw register, notify your campus staff analyst immediately and supply examples for forwarding to the IRP Analyst (within the hour).

    4. This field is equal to or less than field B. If not both field B and field J appear in error.

    5. Accept only positive (including zero) amounts.

  11. Field K, Year Indicator

    1. An entry allowed on only Account Type Code "B" and "C" documents.

    2. Accept only current year being processed minus three, current year being processed minus two, current year being processed minus one and blanks.

      Note:

      Blank represents current year being processed. Valid numeric entries equal to the three previous prior years.

    3. Accept only blank entries for all Account Type Code "S" document code 69.

  12. Field L through U require blanks.

Section 06 Document Code 71 Format Code 571, Form 1099-NEC, Nonemployee Compensation

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Nonemployee compensation."

    2. Accept only positive (including zero) amounts.

  2. Field B, Box 2

    1. Entry from box 2, "Direct sales" checkbox.

    2. Valid code is 1 if box is checked.

    3. Blank if not checked.

  3. Field C, Money amount 2

    1. Money amount located in box 4, "Federal income tax withheld."

    2. Accept only positive (including zero) amounts.

    3. Delete the data record when the field is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of field A and reason code 16 is present. Income field A and field D appear marked in error. See IRM 3.12.8.2.7, Deleting Error Records, and Exhibit 3.12.8-9, Signs of Fraud, for instruction.

  4. Field D through U require blanks.

Section 06 Document Code 72 Format Code 028, Form 5498-ESA, Coverdell ESA Contribution Information

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Coverdell ESA contributions."

    2. Accept only positive (including zero) amounts.

  2. Field B, Money amount 2

    1. Money amount located in box 2, "Rollover contributions."

    2. Accept only positive (including zero) amounts.

  3. Field C through U require blanks.

Section 06 Document Code 73 Format Code 029, Form 1099-CAP, Changes in Corporate Control and Capital Structure

  1. Field A, Box 1

    1. Date in box 1, "Date of sale or exchange."

    2. Valid format equals YYYYMMDD.

    3. If the date is not entered in the correct format, enter it in YYYYMMDD format.

    4. If the date is entered incorrectly by the filer, change the year to equal current tax year processed (processing year minus one).

    5. Enter the day of "01" to the YYYYMM present if a valid MM and YYYY appear with no DD.

  2. Field B, Money amount 1

    1. Money amount located in box 2 "Aggregate amount rec'd."

    2. Accept only positive (including zero) amounts.

  3. Field C, Box 3

    1. Number in box 3 "No. of shares exchanged."

    2. Field is numeric.

  4. Field D, Box 4

    1. Entry in box 4 "Classes of stock exchanged."

    2. Alpha and numeric entries up to 12 characters valid.

  5. Field E through U require blanks.

Section 06 Document Code 74, Format Code 355, Form 1098-Q, Qualifying Longevity Annuity Contract Information

  1. Field A, Money amount 1

    1. Money amount located in box 1a, "Annuity amount on start date."

    2. Accept only positive (including zero) amounts.

  2. Field B, Box 1b

    1. Date in box 1b, "Annuity start date."

    2. Valid format equals YYYYMMDD.

    3. If the date is not entered correctly in YYYYMMDD format enter the correct date format.

    4. Any date and year valid as long as a valid date.

  3. Field C, Box 2

    1. Entry for checkbox "Check if start date may be accelerated."

    2. The valid code is 1 if the indicator box is checked.

    3. Blank if not checked.

  4. Field D, Money amount 2

    1. Money amount located in box 3, "Total premiums."

    2. Accept only positive (including zero) amounts.

  5. Field E, Money amount 3

    1. Money amount located in box 4, "FMV of QLAC."

    2. Accept only positive (including zero) amounts.

  6. Field F, Money amount 4

    1. Money amount located box 5a, "January."

    2. Accept only positive (including zero) amounts.

  7. Field G, Money amount 5

    1. Money amount located in box 5b, "February."

    2. Accept only positive (including zero) amounts.

  8. Field H, Money amount 6

    1. Money amount located in box 5c, "March."

    2. Accept only positive (including zero) amounts.

  9. Field I, Money amount 7

    1. Money amount located in box 5d, "April."

    2. Accept only positive (including zero) amounts.

  10. Field J, Money amount 8

    1. Money amount located in box 5e, "May."

    2. Accept only positive (including zero) amounts.

  11. Field K, Money amount 9

    1. Money amount located in box 5f, "June."

    2. Accept only positive (including zero) amounts.

  12. Field L, Money amount 10

    1. Money amount located in box 5g, "July."

    2. Accept only positive (including zero) amounts.

  13. Field M, Money amount 11

    1. Money amount located in box 5h, "August."

    2. Accept only positive (including zero) amounts.

  14. Field N, Money amount 12

    1. Money amount located in box 5i, "September."

    2. Accept only positive (including zero) amounts.

  15. Field O, Money amount 13

    1. Money amount located in box 5j, "October."

    2. Accept only positive (including zero) amounts.

  16. Field P, Money amount 14

    1. Money amount located in box 5k, "November."

    2. Accept only positive (including zero) amounts.

  17. Field Q, Money amount 15

    1. Money amount located in box 5l, "December."

    2. Accept only positive (including zero) amounts.

  18. Field R through U require blanks.

Section 06 Document Code 75 Format Code 396, Form 1099-S, Proceeds From Real Estate Transaction

  1. Field A, Box 1

    1. Date from box 1, "Date of closing."

    2. The date valid format equals YYYYMMDD, where yyyy=yyty (processing year minus one.)

    3. If the date is not entered correctly, enter the date in the correct format above.

    4. Accept blanks or blanks followed by a date in the proper format.

    5. If the year of the date is entered incorrectly by the filer, change the year to equal current tax year being processed (processing year minus one).

  2. Field B, Money amount 1

    1. Money amount located in box 2 "Gross proceeds."

    2. Accept only positive (including zero) amounts.

  3. Field C, Box 3

    1. Description from box 3, "Address or legal description."

    2. This field contains up to 39 alpha and/or numeric characters.

    3. For descriptions longer than 39 characters, abbreviate where possible, otherwise, delete the right most characters more than 39.

    4. No validity check for this field.

    5. Blanks acceptable.

  4. Field D, Box 4

    1. The valid code is 1 if the box is checked.

    2. Blank valid if not checked.

  5. Field E, Box 5

    1. The valid code is 1 if the box is checked.

    2. Blank valid if not checked.

  6. Field F, Money amount 2

    1. Money amount located in box 6 "Buyer’s part of real estate tax."

    2. Accept only positive (including zero) amounts.

  7. Field G through U require blanks.

Section 06 Document Code 78 Format Code 357, Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes

  1. Field A, Box 1

    1. Entry from box 1, "Date of contribution."

    2. Valid format equals YYYYMMDD, where yyyy=yyty (processing year minus one).

    3. If the year is less than the year currently processed delete the record. See IRM 3.12.8.2.7, Deleting Error Records, for delete procedures.

    4. Enter the day of "01" to the YYYYMM present if a valid MM and YYYY appear with no DD.

  2. Field B, Box 2b

    1. Entry from box 2b, "Year."

    2. Accept four numeric characters.

  3. Field C, Box 2c

    1. Entry from box 2c, "Make."

    2. This entry contains up to 13 alpha characters.

    3. Blank the field if only numerics.

  4. Field D, Box 2d

    1. Entry from box 2d, "Model."

    2. This entry contains up to 22 alpha and/or numeric characters.

  5. Field E, Box 3

    1. Entry from box 3, "Vehicle or other identification number."

    2. This entry contains up to 25 alpha and/or numeric characters.

  6. Field F, Box 4a

    1. Entry from box 4a, "Vehicle sold in arm's length transaction to unrelated party."

    2. The valid code is 1 if box is checked.

    3. Blank if box is not checked and H is not a positive value.

    4. If F is blank and H is a positive value enter a 1 in field F.

      Reminder:

      Mirror field A into field G if field G is also blank.

  7. Field G, Box 4b

    1. Date from box 4b, "Date of sale."

    2. Valid format equals YYYYMMDD, where yyyy=yyty (processing year minus one).

    3. Remove the date if yyyy is less or more than yyty and the date on field A=yyty.

      Exception:

      If field F and H each contain an entry and field H is a positive value then mirror field A. See instruction directly below for field H.

  8. Field H, Money amount 1

    1. Money amount located in box 4c, "Gross proceeds from sale."

    2. Accept only positive (including zero) amounts.

      Reminder:

      See also IRM 3.12.8.5 (8), Section 06 Error Register, if no significant money amounts present on the document, then 2D record if it does not meet exception criteria.

    3. Field G and F must each contain an entry if field H is a positive value. If field G is blank mirror field A, "Date of contribution."

  9. Field I, Box 5a

    1. Entry from checkbox 5a, "Vehicle will not be transferred for money, other property, or services before completion of improvements or intended use."

    2. The valid code is 1 if box is checked.

    3. Blank valid if not checked.

  10. Field J, Box 5b

    1. Entry from checkbox 5b, "Donee certifies - needy individual."

    2. The valid code is 1 if box is checked.

    3. Blank valid if not checked.

  11. Field K, Box 5c

    1. Entry from box 5c, "Donee certifies the following detailed description of..."

    2. This entry contains up to 39 alpha and/or numeric characters.

    3. No validity check for this field.

    4. Blanks acceptable.

  12. Field L, Box 6a

    1. Entry from checkbox 6a, "Did you provide goods or services..."

    2. The valid code is 1 if the "Yes" box is checked.

    3. Blank the field if both the "Yes" and "No" boxes contain marks.

    4. Blank if the "No" box is checked.

  13. Field M, Money amount 2

    1. Money amount located in box 6b, "Value of good provided."

    2. Accept only positive (including zero) amounts.

  14. Field N, Box 6c

    1. Entry from checkbox 6c, "Intangible religious benefit."

    2. The valid code is 1 if box is checked.

    3. Blank valid if not checked.

  15. Field O, Box 7

    1. This is in box 7, "Under law cannot claim more than $500."

    2. The valid code is 1 if box is checked.

    3. Blank valid if not checked.

  16. Field P through U require blanks.

Section 06 Document Code 79 Format Code 021, Form 1099-B, Proceeds From Broker and Barter Exchange Transactions

  1. Field A, Box 1a

    1. Entry from box 1a "Description of property (Example 100 sh. XYZ Co.)."

    2. This field contains up to 39 alpha and/or numeric characters.

    3. For descriptions longer than 39 characters, abbreviate where possible, otherwise, delete the right most characters more than 39.

    4. Blanks acceptable.

    5. No validity check for this field.

  2. Field B, Box 1b

    1. Date from box 1b, "Date acquired."

    2. All blanks or leading blanks followed by a date in valid format is acceptable. Valid format equals YYYYMMDD, where yyyy=yyty (processing year minus one).

    3. If the date is not entered correctly, enter date to the format above.

    4. If the date is entered incorrectly by the filer, delete the transcribed information.

  3. Field C, Box 1c

    1. Date from box 1c "Date sold or disposed."

    2. All blanks or leading blanks followed by a date in valid format is acceptable. The valid format equals YYYYMMDD, where yyyy=yyty (processing year minus one).

    3. If the date is not entered correctly, enter the date to the format above.

    4. If the date is entered incorrectly by the filer, delete the transcribed information.

  4. Field D, Money amount 1

    1. Money amount located in box 1d, "Proceeds."

    2. Accept negative or positive (including zero) amounts.

  5. Field E, Money amount 2

    1. Money amount located in box 1e, "Cost or other basis."

    2. Accept only positive (including zero) amounts.

  6. Field F, Money amount 3

    1. Money amount located in box 1f, "Accrued market discount."

    2. Accept only positive (including zero) amounts.

  7. Field G, Money amount 4

    1. Money amount located in box 1g, "Wash sale loss disallowed."

    2. Accept negative or positive (including zero) amounts.

  8. Field H, Box 2

    1. Entry from checkboxes under box 2.

    2. Accept 1 if "Short-term gain or loss" box is checked, 2 if "Long- term gain or loss" box is checked, 3 if "Ordinary" box is checked and blank if no box is checked.

    3. Blank the field if multiple boxes contain marks (checks) or an invalid character exists in the field.

  9. Field I, Box 3

    1. Entry for checkbox 3,"Check if proceeds from:."

    2. The valid code is 1 if the Collectibles box is checked.

    3. The valid code is 2 if the "QOF" box is checked.

    4. The valid code is 3 if both boxes contain checks.

    5. Blank valid for no boxes checked.

  10. Field J, Money amount 5

    1. Money amount located in box 4, "Federal income tax withheld."

    2. This field is less than or equal to the sum of box 1d and 13.

    3. Delete the data record when the field is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of fields D and U and error reason code 16 is present and fields D, J and U have asterisk. See IRM 3.12.8.2.7, Deleting Error Records, and Exhibit 3.12.8-9, Signs of Fraud, for instruction.

    4. Accept positive (including zero) amounts.

  11. Field K, Box 5

    1. Entry for checkbox 5, "Check if noncovered security."

    2. The valid code is 1 if the box is checked.

    3. Blank valid if not checked.

  12. Field L, Box 6

    1. Entry for checkbox 6 "Reported to IRS: Check Gross proceeds / Net proceeds."

    2. The valid code is 1 if the Gross proceeds box is checked.

    3. The valid code is 2 if the Net proceeds box is checked.

    4. Blank is valid if neither box is checked.

    5. Blank the field if both boxes contain checks or you cannot determine filer intent.

  13. Field M, Box 7

    1. Entry for checkbox 7 "Check if loss not allowed based on amount in box 1d."

    2. The valid code is 1 if the box is checked.

    3. Blank valid if not checked.

  14. Field N, Money amount 6

    1. Money amount located in box 8, "Profit or loss realized in yyty on closed contracts."

    2. Accept negative or positive (including zero) amounts.

  15. Field O, Money amount 7

    1. Money amount located in box 9, "Unrealized profits or (loss) on open contracts 12/31/yyty-1."

    2. Accept negative or positive (including zero) amounts.

  16. Field P, located in the lower left-hand corner of the document

    1. Entry in, "CUSIP number."

    2. No validity checks for this field.

    3. Field cannot exceed 13 characters.

  17. Field Q

    1. Entry for checkbox located under the recipient entity on the left side of the document, "FATCA filing requirement."

    2. The valid code is 1 if the box is checked.

    3. Blank valid if not checked.

  18. Field R, Money amount 8

    1. Money amount located in box 10, "Unrealized profits or (loss) on open contracts 12/31/yyty."

    2. Accept negative or positive (including zero) amounts.

  19. Field S, Money amount 9

    1. Money amount located in box 11, "Aggregate profit or (loss) on contracts."

    2. Accept negative or positive (including zero) amounts.

  20. Field T, Box 12

    1. Entry for checkbox box 12, "Check if basis reported to IRS."

    2. The valid code is 1 if the box is checked.

    3. Blank valid if not checked.

  21. Field U, Money amount 10

    1. Money amount located in box 13, "Bartering."

    2. Accept only positive (including zero) amounts.

Section 06 Document Code 80 Format Code 354, Form 1099-A, Acquisition or Abandonment of Secured Property

  1. Field A, Money amount 1

    1. Money amount located in box 2, "Balance of principal outstanding."

    2. Accept only positive (including zero) amounts.

  2. Field B, Money amount 2

    1. Money amount located in box 4, "Fair market value of property."

    2. Accept only positive (including zero) amounts.

  3. Field C, Box 5

    1. Entry from box 5 "Check here if the borrower was personally liable for repayment of the debt."

    2. The valid code is 1 if the box is checked.

    3. Blank valid if not checked.

  4. Field D, Box 6

    1. Entry from box 6, "Description of property."

    2. Any characters valid with a maximum of 39 positions.

    3. No validity check for this field.

    4. Blank acceptable.

  5. Field E through U require blanks.

Section 06 Document Code 81 Format Code 358, Form 1098, Mortgage Interest Statement

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Mortgage interest received from payers/borrowers."

    2. Accept only positive (including zero) amounts.

  2. Field B, Money amount 2

    1. Money amount located in box 2, "Outstanding mortgage principal."

    2. Accept only positive (including zero) amounts.

  3. Field C, Box 3

    1. Date present in box 3, "Mortgage origination date."

    2. Valid format equals YYYYMMDD.

    3. Blank or any year acceptable.

      Exception:

      If the date is 19XX0229 and appears in error then enter the date 19XX0228 where 19XX is equal to the year present on the original entry.

    4. Blank the field when incomplete or illegible.

  4. Field D, Money amount 3

    1. Money amount located in box 3, "Refund of overpaid interest."

    2. Accept only positive (including zero) amounts.

  5. Field E, Money amount 4

    1. Money amount located in box 4, "Mortgage insurance premiums."

    2. Accept only positive (including zero) amounts.

      Caution:

      A money amount reported here requires an additional significant money amount reported in amount field A or field D if selectable. See also IRM 3.12.8.5 (8), Section 06 Error Register.

  6. Field F, Money amount 5

    1. Money amount located in box 6, "Points paid on purchase of principal residence."

    2. Accept only positive (including zero) amounts.

  7. Field G, Box 7

    1. Entry from box 7 "Is address of property securing mortgage same as PAYER’S/BORROWER’S address?"

    2. The valid code is 1 if the box is checked.

    3. Blank valid if not checked.

  8. Field H, Box 8

    1. Entry from box 8, "Address of property securing mortgage."

    2. This field contains up to 39 alpha and/or numeric characters.

    3. Leave a blank for illegible characters but do not leave two blanks in a row.

    4. For entries longer than 39 characters, abbreviate where possible, otherwise, delete the right most characters more than 39.

    5. No validity check for this field.

    6. Blanks acceptable.

  9. Field I, Box 9

    1. Number from box 9, "Number of properties securing the mortgage."

    2. Accept only positive (including zero) amounts.

  10. Field J, Box 10

    1. Entry from box 10, "Other."

    2. This field contains up to 39 alpha and/or numeric characters.

    3. Leave a blank for illegible characters but do not leave two blanks in a row.

    4. For entries longer than 39 characters, abbreviate where possible, otherwise, delete the right most characters more than 39.

    5. No validity check for this field.

    6. Blanks acceptable.

  11. Field K, Box 11

    1. Date present in box 11, "Mortgage acquisition date."

    2. Valid format equals YYYYMMDD.

    3. Blank or any year acceptable.

      Exception:

      If the date is 19XX0229 and appears in error then enter the date 19XX0228 where 19XX is equal to the year present on the original entry.

    4. Blank the field when incomplete or illegible.

  12. Field L through U require blanks.

Section 06 Document Code 83 Format Code 359, Form 1098-T, Tuition Statement

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Payments received for qualified tuition and related expenses."

    2. Accept only positive (including zero) amounts.

  2. Field B

    1. TIN checkbox to the right of the "STUDENT’S TIN" and to the left of box 3.

    2. The valid code is 1 if the box is checked.

    3. Blank valid if box is not checked.

  3. Field C, Money amount 2

    1. Money amount located in box 4 "Adjustment made for a prior year."

    2. Accept negative or positive (including zero) amounts.

  4. Field D, Money amount 3

    1. Money amount located in box 5 "Scholarships or grants."

    2. Accept only positive (including zero) amounts.

  5. Field E, Money amount 4

    1. Money amount located in box 6 "Adjustments to scholarships or grants for a prior year."

    2. Accept negative and positive (including zero) amounts.

  6. Field F, Box 7

    1. Entry for checkbox 7 "Checked if the amount in box 1 includes amounts for an academic period beginning January - March yypy (yypy equals the current processing year)."

    2. Valid code is 1 if box is checked.

    3. Blank valid if not checked.

  7. Field G, Box 8

    1. Entry for checkbox 8 "Checked if at least half-time student."

    2. Valid code is 1 if box is checked.

    3. Blank valid if not checked.

  8. Field H, Box 9

    1. Entry for checkbox 9 "Checked if a graduate student."

    2. Valid code is 1 if box is checked.

    3. Blank valid if not checked.

  9. Field I, Money amount 5

    1. Money amount located in box 10 "Ins. contract reimb./refund."

    2. Accept negative and positive (including zero) amounts.

  10. Field J through U require blanks.

Section 06 Document Code 84 Format Code 358, Form 1098-E, Student Loan Interest Statement

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Student loan interest received by lender."

    2. Accept only positive (including zero) amounts.

  2. Field B, Box 2

    1. Entry for checkbox 2, "Check if box 1 does not include..."

    2. Valid code is 1 if box is checked.

    3. Blank valid if not checked.

  3. Field C through U require blanks.

Section 06 Document Code 85 Format Code 397, Form 1099-C, Cancellation of Debt

  1. Field A, Box 1

    1. Date in box 1, "Date of identifiable event."

    2. Valid format equals YYTYMMDD for current year processing.

  2. Field B, Money amount 1

    1. Money amount located in box 2, "Amount of debt discharged."

    2. Accept only positive (including zero) amounts.

    3. See IRM 3.12.8.5 (8), Section 06 Error Register, if no significant money amount exists and the document is not amended follow the delete instructions.

  3. Field C, Money amount 2

    1. Money amount located in box 3, "Interest if included in box 2."

    2. Accept only positive (including zero) amounts.

  4. Field D, Box 4

    1. Entry from box 4 "Debt description."

    2. This field contains up to 39 alpha and/or numeric characters.

    3. Leave a blank for illegible characters but do not leave two blanks in a row.

    4. For entries longer than 39 characters, abbreviate where possible, otherwise, delete the right most characters more than 39.

    5. No validity check for this field.

    6. Blank acceptable.

  5. Field E, Box 5

    1. Entry from checkbox 5 "Check here if debtor was personally liable for repayment of the debt."

    2. Valid code is "1" if the box is checked.

    3. Blank valid if not checked.

  6. Field F, Box 6

    1. Entry from box 6 "Identifiable event code."

    2. A one-character alpha is valid.

    3. Accept A, B, C, D, E, F, G, and H.

    4. Blanks valid.

  7. Field G, Money amount 3

    1. Money amount located in box 7, "Fair market value of property."

    2. Accept only positive (including zero) amounts.

  8. Field H through U requires blanks.

Section 06 Document Code 86 Format Code 026, Form 1099-G, Certain Government Payments

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Unemployment compensation."

    2. Accept only positive (including zero) amounts.

  2. Field B, Money amount 2

    1. Money amount located in box 2, "State or local income tax refunds, credits or offsets."

    2. Accept only positive (including zero) amounts.

  3. Field C, Box 3

    1. Year from box 3, "Box 2 amount is for tax year."

    2. All blanks or leading blanks followed by a four-digit tax year is acceptable.

    3. If not blank, must equal tax year processed minus one through tax year minus four.

    4. If after checking the paper document, the tax year is not valid, change it to tax year being processed minus one.

  4. Field D, Money amount 4

    1. Money amount located in box 4, "Federal income tax withheld."

    2. Accept only positive (including zero) amounts.

    3. Acceptable is less than or equal to the sum of fields A, B, E, and F.

  5. Field E, Money amount 5

    1. Money amount located in box 5, "RTAA payments."

    2. Accept only positive (including zero) amounts.

  6. Field F Money amount 6

    1. Money amount located in box 6, "Taxable grants."

    2. Accept only positive (including zero) amounts.

  7. Field G, Money amount 7

    1. Money amount located in box 7, "Agriculture payments."

    2. Accept only positive (including zero) amounts.

  8. Field H, Box 8

    1. Entry for checkbox 8, "Check if box 2 is trade or business income."

    2. This is a one-position field.

    3. This field is 1 if box 8 checkbox is marked.

    4. Blank valid if not marked.

    5. Accept only "1" or blank.

    6. If a "1" then, Field B (box 2) requires an entry greater than zero. If there isn't an entry in field B and field H contains a "1," both fields appear in error.

  9. Field I through U requires blanks.

Section 06 Document Code 91 Format Code 032, Form 1099-DIV, Dividends and Distributions

  1. Field A, Money amount 1

    1. Money amount located in box 1a, "Total ordinary dividends."

    2. Accept only positive (including zero) amounts.

  2. Field B, Money amount 2

    1. Money amount located in box 1b, "Qualified dividends."

    2. Accept only positive (including zero) amounts.

  3. Field C, Money amount 3

    1. Money amount located in box 2a, "Total capital gain distr."

    2. Accept only positive (including zero) amounts.

  4. Field D, Money amount 4

    1. Money amount located in box 2b, "Unrecap. Sec. 1250 gain."

    2. Accept only positive (including zero) amounts.

  5. Field E, Money amount 5

    1. Money amount located in box 2c, "Section 1202 gain."

    2. Accept only positive (including zero) amounts.

  6. Field F, Money amount 6

    1. Money amount located in box 2d, "Collectibles (28%) gain."

    2. Accept only positive (including zero) amounts.

  7. Field G, Money amount 7

    1. Money amount located in box 2e, "Section 897 ordinary dividends."

    2. Accept only positive (including zero) amounts.

  8. Field H, Money amount 8

    1. Money amount located in box 2f, "Section 897 capital gain."

    2. Accept only positive (including zero) amounts.

  9. Field I, Money amount 9

    1. Money amount located in box 3, "Nondividend distributions."

    2. Accept only positive (including zero) amounts.

  10. Field J, Money amount 10

    1. Money amount located in box 4, "Federal income tax withheld."

    2. Delete the data record when the field is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the sum of fields A and C, reason code 16 is present and fields A, C, and J have asterisks. See IRM 3.12.8.2.7, Deleting Error Records, and Exhibit 3.12.8-9, Signs of Fraud, for instruction.

    3. Accept only positive (including zero) amounts.

  11. Field K, Money amount 11

    1. Money amount located in box 5, "Section 199A dividends."

    2. Accept only positive (including zero) amounts.

  12. Field L, Money amount 12

    1. Money amount located in box 6, "Investment expenses."

    2. Accept only positive (including zero) amounts.

  13. Field M, Money amount 13

    1. Money amount located in box 7, "Foreign tax paid."

    2. Accept only positive (including zero) amounts.

  14. Field N, Money amount 14

    1. Money amount located in box 9, "Cash liquidation distributions."

    2. Accept only positive (including zero) amounts.

  15. Field O, Money amount 15

    1. Money amount located in box 10, "Noncash liquidation distributions."

    2. Accept only positive (including zero) amounts.

  16. Field P

    1. Entry from checkbox located under the recipient entity on the left side of the document, "FATCA filing requirement."

    2. The valid code is 1 if the box is checked.

    3. Blank valid if not checked.

  17. Field Q, Money amount 16

    1. Money amount located in box 11, "Exempt-interest dividends."

    2. Accept only positive (including zero) amounts.

      Note:

      Amount present must equal or exceed any taxpayer entry made on field R.

  18. Field R, Money amount 17

    1. Money amount located in box 12, "Specified private activity bond interest dividends."

    2. Accept only positive (including zero) amounts.

    3. If a positive money amount and in error and field Q contains a blank, enter the amount present here in field Q.

    4. If a positive money amount and in error and field Q contains a money amount, replace the money amount in field Q with the sum of the amounts in fields Q and R.

  19. Field S through U require blanks.

Section 06 Document Code 92 Format Code 033, Form 1099-INT, Interest Income

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Interest income."

    2. Accept only positive (including zero) amounts.

  2. Field B, Money amount 2

    1. Money amount located in box 2, "Early withdrawal penalty."

    2. Accept only positive (including zero) amounts.

  3. Field C, Money amount 3

    1. Money amount located in box 3, "Interest on U.S. Savings Bonds and Treas. obligations."

    2. Accept only positive (including zero) amounts.

  4. Field D, Money amount 4

    1. Money amount located in box 4, "Federal income tax withheld."

    2. Delete the data record when the field is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the sum of fields A and C, reason code 16 is present and fields A, C, and D have asterisks. See IRM 3.12.8.2.7, Deleting Error Records, and Exhibit 3.12.8-9, Signs of Fraud for instruction.

    3. Accept only positive (including zero) amounts.

  5. Field E, Money amount 5

    1. Money amount located in box 5, "Investment expenses."

    2. Accept only positive (including zero) amounts.

  6. Field F, Money amount 6

    1. Money amount located in box 6, "Foreign tax paid."

    2. Accept only positive (including zero) amounts.

  7. Field G, Box 7

    1. Entry from box 7, "Foreign country or U.S. possession."

    2. This field contains up to 39 alpha characters.

    3. For text longer than 39 characters, abbreviate where possible; otherwise, delete the right most characters more than 39.

  8. Field H, Money amount 7

    1. Money amount located in box 8, "Tax-exempt interest."

    2. Accept only positive (including zero) amounts.

  9. Field I, Money amount 8

    1. Money amount located in box 9, "Specified private activity bond interest."

    2. Accept only positive (including zero) amounts.

  10. Field J, Money amount 9

    1. Money amount located in box 10, "Market discount."

    2. Accept only positive (including zero) amounts.

  11. Field K, Money amount 10

    1. Money amount located in box 11, "Bond premium."

    2. Accept only positive (including zero) amounts.

  12. Field L

    1. Entry for checkbox located under the recipient entity on the left side of the document, "FATCA filing requirement."

    2. The valid code is 1 if the box is checked.

    3. Blank valid if not checked.

  13. Field M, Money amount 11

    1. Money amount located in box 12, "Bond premium on Treasury obligations."

    2. Accept only positive (including zero) amounts.

  14. Field N, Money amount 12

    1. Money amount located in box 13, "Bond premium on tax-exempt bond."

    2. Accept only positive (including zero) amounts.

  15. Field O, Box 14

    1. Entry from box 14 "Tax-exempt and tax credit bond CUSIP no."

    2. A 13-character field.

    3. No validity checks for this field.

  16. Field P through U require blanks.

  17. Interest paid in series E savings bonds is now reported in box 3. Because regulations allow reporting of this interest when it is paid, returns arrive anytime during the year. Delete and forward any returns marked yypy to Receipt and Control IRP Sort Unit to hold for processing in the next processing year (yypy plus one).

Section 06 Document Code 93 Format Code 034, Form 1099-LTC, Long-Term Care and Accelerated Death Benefits

  1. Field A, Money amount 1

    1. Money amount located in box 1 "Gross long-term care benefits paid."

    2. Accept only positive (including zero) amounts.

  2. Field B, Money amount 2

    1. Money amount located in box 2, "Accelerated death benefits paid."

    2. Accept only positive (including zero) amounts.

  3. Field C, Box 3

    1. Entry from checkbox 3, "Per Diem/Reimbursed checkbox."

    2. The valid code is 1, if "Per diem" box only is checked.

    3. The valid code is 2, if "Reimbursed amount" box only is checked.

    4. The valid code is 3, if both boxes contain checks.

    5. Blank if neither box is checked.

  4. Field D

    1. Entry in "INSURED'S TIN."

    2. This field contains 9 numerics.

  5. Field E

    1. Entry in "INSURED'S name."

    2. This field contains up to 39 alpha and/or numeric characters.

    3. For descriptions longer than 39 characters, abbreviate where possible; otherwise, delete the right-most characters more than 39.

    4. No validity check for this field.

    5. Blank acceptable

  6. Field F, Box 5

    1. Entry for checkbox 5, "Chronically or Terminally iII" checkboxes.

    2. The valid code is 1 if "Chronically ill" box only is checked.

    3. The valid code is 2 if "Terminally ill" box only is checked.

    4. The valid code is 3 if both boxes contain checks.

    5. Blanks valid if no box checked.

  7. Field G, Box located after box 5

    1. Date from box 5, "Date certified."

    2. Valid format equals YYYYMMDD for the date.

  8. Field H through U requires blanks.

Section 06 Document Code 94 Format Code 035, Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Gross distribution."

    2. Accept only positive (including zero) amounts.

  2. Field B, Money amount 2

    1. Money amount located in box 2, "Earnings on excess cont."

    2. Accept only positive (including zero) amounts.

  3. Field C, Box 3

    1. Entry from box 3, "Distribution code."

    2. The valid code 1, "Normal distribution."

    3. The valid code 2, "Excess contributions."

    4. The valid code 3, "Disability."

    5. The valid code 4, "Death."

    6. The valid code 5, "Prohibited transaction."

    7. The valid code 6, "Nonspousal beneficiary."

  4. Field D, Money amount 3

    1. Money amount located in box 4, "FMV on date of death."

    2. Accept only positive (including zero) amounts.

  5. Field E, Box 5

    1. Entry for is box 5.

    2. Valid code is 1 if "HSA" box is checked.

    3. Valid code is 2 if "Archer MSA" box is checked.

    4. Valid code is 3 if "MA MSA" box is checked.

    5. Blank valid if multiple boxes contain checks or no boxes have checks.

  6. Field F through U requires blanks.

Section 06 Document Code 95 Format Code 040, Form 1099-MISC, Miscellaneous Information

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Rents."

    2. Accept only positive (including zero) amounts.

  2. Field B, Money amount 2

    1. Money amount located in box 2, "Royalties."

    2. Accept only positive (including zero) amounts.

  3. Field C, Money amount 3

    1. Money amount located in box 3, "Other income."

    2. Accept only positive (including zero) amounts.

  4. Field D, Money amount 4

    1. Money amount located in box 4, "Federal income tax withheld."

    2. Accept only positive (including zero) amounts.

    3. Delete the data record when the field is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the sum of fields A, B, C, E, F, H, I, J, K and N and reason code 16 is present. All income fields and field D appear marked in error. See IRM 3.12.8.2.7, Deleting Error Records, and Exhibit 3.12.8-9, Signs of Fraud, for instruction.

  5. Field E, Money amount 5

    1. Money amount located in box 5, "Fishing boat proceeds"

    2. Accept only positive (including zero) amounts.

  6. Field F, Money amount 6

    1. Money amount located in box 6, "Medical and health care payments."

    2. Accept only positive (including zero) amounts.

  7. Field G, Box 7

    1. Entry for checkbox 7, "Direct sales" checkbox.

    2. Valid code is 1 if box is checked.

    3. Blank valid if not checked.

  8. Field H, Money amount 7

    1. Money amount located in box 8, "Substitute payments in lieu of dividends or interest."

    2. Accept only positive (including zero) amounts.

  9. Field I, Money amount 8

    1. Money amount located in box 9, "Crop insurance proceeds."

    2. Accept only positive (including zero) amounts.

  10. Field J, Money amount 9

    1. Money amount located in box 10 "Gross proceeds paid to an attorney."

    2. Accept only positive (including zero) amounts.

  11. Field K, Money amount 10

    1. Money amount located in box 11 "Fish purchased for resale."

    2. Accept only positive (including zero) amounts.

  12. Field L, Money amount 11

    1. Money amount located in box 12 "Section 409A deferrals."

    2. Accept only positive (including zero) amounts.

  13. Field M

    1. Entry for the checkbox located under the recipient entity on the left side of the document, "FATCA filing requirement."

    2. The valid code is 1 if the box is checked.

    3. Blank is valid if the box is not checked.

  14. Field N, Money amount 12

    1. Money amount located in box 13 "Excess golden parachute payments."

    2. Accept only positive (including zero) amounts.

  15. Field O, Money amount 13

    1. Money amount located in box 14 "Nonqualified deferred compensation."

    2. Accept only positive (including zero) amounts.

  16. Field P through U requires blanks.

Section 06 Document Code 96 Format Code 060, Form 1099-OID, Original Issue Discount

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Original issue discount for yyty."

      Note:

      yyty equals the tax year currently processed.

    2. Accept only positive (including zero) amounts.

  2. Field B, Money amount 2

    1. Money amount located in box 2, "Other periodic interest."

    2. Accept only positive (including zero) amounts.

  3. Field C, Money amount 3

    1. Money amount located in box 3, "Early withdrawal penalty."

    2. Accept only positive (including zero) amounts.

  4. Field D, Money amount 4

    1. Money amount located in box 4, "Federal income tax withheld."

    2. Accept only positive (including zero) amounts.

    3. Delete the data record when the field is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the sum of field A and B and reason code 16 is present. Fields A, B, and D appear marked in error. See IRM 3.12.8.2.7, Deleting Error Records, and Exhibit 3.12.8-9, Signs of Fraud, for instruction.

  5. Field E, Money amount 5

    1. Money amount located in box 5, "Market discount."

    2. Accept only positive (including zero) amounts.

  6. Field F, Money amount 6

    1. Money amount located in box 6, "Acquisition premium."

    2. Accept only positive (including zero) amounts.

  7. Field G, Box 7

    1. Entry from box 7, "Description."

    2. This field contains up to 39 alpha and/or numeric characters. found in box 7.

    3. For descriptions longer than 39 characters, abbreviate where possible; otherwise, delete the right most characters more than 39.

    4. No validity check for this field.

    5. Blank acceptable.

  8. Field H, Money amount 7

    1. Money amount located in box 8 "Original issue discount on U.S. Treasury obligations."

    2. Accept negative or positive (including zero) amounts.

  9. Field I

    1. Entry from the checkbox located under the recipient entity on the left side of the document, "FATCA filing requirement."

    2. The valid code is 1 if the box is checked.

    3. Blank is valid if the box is not checked.

  10. Field J, Money amount 8

    1. Money amount located in box 9 "Investment expenses."

    2. Accept only positive (including zero) amounts.

  11. Field K, Money amount 9

    1. Money amount located in box 10, "Bond premium."

    2. Accept only positive (including zero) amounts.

  12. Field L, Money amount 10

    1. Money amount located in box 11, "Tax-exempt OID."

    2. Accept only positive (including zero) amounts.

  13. Field M through U requires blanks.

Section 06 Document Code 97 Format Code 061, Form 1099-PATR, Taxable Distributions Received From Cooperatives

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Patronage dividends."

    2. Accept only positive (including zero) amounts.

  2. Field B, Money amount 2

    1. Money amount located in box 2, "Nonpatronage distributions."

    2. Accept only positive (including zero) amounts.

  3. Field C, Money amount 3

    1. Money amount located in box 3, "Per-unit retain allocations."

    2. Accept only positive (including zero) amounts.

  4. Field D, Money amount 4

    1. Money amount located in box 4 "Federal income tax withheld."

    2. Entry is less than the sum of fields A, B, C, and E.

    3. Delete the data record when the field is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the sum of fields A, B, C, and E and reason code 16 is present along with fields A, B, C, D and E all marked in error. See IRM 3.12.8.2.7, Deleting Error Records, and Exhibit 3.12.8-9, Signs of Fraud for instruction.

    4. Accept only positive (including zero) amounts.

  5. Field E, Money amount 5

    1. Money amount located in box 5, "Redeemed nonqualified notices."

    2. Accept only positive (including zero) amounts.

  6. Field F, Money amount 6

    1. Money amount located in box 6, "Section 199A(g) deduction."

    2. Accept only positive (including zero) amounts.

  7. Field G, Money amount 7

    1. Money amount located in box 7, "Qual. payments (Sec. 199A(b)(7))."

    2. Accept only positive (including zero) amounts.

  8. Field H, Money amount 8

    1. Money amount located in box 8, "Section 199A(a) qual. items."

    2. Accept only positive (including zero) amounts.

  9. Field I, Money amount 9

    1. Money amount located in box 9, "Section 199A(a) SSTB items."

    2. Accept only positive (including zero) amounts.

  10. Field J, Money amount 10

    1. Money amount located in box 10, "Investment credit."

    2. Accept only positive (including zero) amounts.

  11. Field K, Money amount 11

    1. Money amount located in box 11, "Work opportunity credit."

    2. Accept only positive (including zero) amounts.

  12. Field L, Money amount 12

    1. Money amount located in box 12, "Other credits and deductions."

    2. Accept only positive (including zero) amounts.

  13. Field M, Box 13

    1. Entry for checkbox 13, "Specified Coop."

    2. The valid code is 1 if the box is checked.

    3. Blank valid if not checked.

  14. Field N through U require blanks.

Section 06 Document Code 98 Format Code 025, Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

  1. Field A, Money amount 1

    1. Money amount located in box 1, "Gross distribution."

    2. Accept only positive (including zero) amounts.

      Exception:

      This field amount is equal to or greater than field B. If not, field A is marked in error. Correct any input errors using AC 6.

    3. If a money amount exists in box 2a and no money amount appears in box 1 place the money amount present in box 2a in field A using AC 6.

    4. Otherwise, clear using AC 7.

  2. Field B, Money amount 2

    1. Money amount located in box 2a, "Taxable amount."

    2. Accept only positive (including zero) amounts.

      Exception:

      If a money amount exists in box 3 on the form and no money amount appears in box 2a or box 1, enter the money amount present in box 3 in box 2a and box 1 with an AC 6.

    3. Valid entries in this field, equal or exceed entries in field D. If it isn't, field B is marked in error. Check transcription. If the entries match the physical entries made on the return clear the error using AC 7.

  3. Field C, Box 2b

    1. Entry from the two checkboxes in box 2b.

    2. The valid code is 1, if "Taxable amount not determined" box is checked.

    3. The valid code is 2, if "Total distribution" box is checked.

    4. The valid code is 3, if both boxes contain checks.

    5. Blank valid if neither box contains checks.

  4. Field D, Money amount 3

    1. Money amount located in box 3, "Capital gain (included in box 2a)."

    2. Accept only positive (including zero) amounts.

    3. If this field is greater than zero, and there is not an entry in field B it must equal field A or less. If not, both field A and field D fall to error.

      Note:

      See paragraph (2) above to resolve this error condition.

  5. Field E, Money amount 4

    1. Money amount located in box 4, "Federal income tax withheld."

    2. Accept only positive (including zero) amounts.

    3. Field E must equal to field A amount or less.

  6. Field F, Money amount 5

    1. Money amount located in box 6, "Net unrealized appreciation in employer's securities."

    2. Accept only positive (including zero) amounts.

  7. Field G, Box 7

    1. Entry from box 7, "Distribution code(s)."

    2. Accept only 1 through 9, A, B, C, D, E, F, G, H, J, K, L, M, N, P, Q, R, S, T, U, W, or blank.

    3. Only two indicators allowed. Below is a list of valid indicator combinations as they appear in the official instructions.

      Distr. Code Type of Distribution Compatible Code
      1 Early distribution, no known exception. 8, B, D, K, L, M, or P
      2 Early distribution, exception applies. 8, B, D, K, L, M, or P
      3 Disability. D
      4 Death. 8, A, B, D, G, H, K, L, M, or P
      5 Prohibited transaction. None
      6 Section 1035 exchange. W
      7 Normal distribution. A, B, D, L, M, or K
      8 Excess contributions plus earnings; excess deferrals. 1, 2, 4, B, J, or K
      9 Cost of current life insurance protection. None
      A May be eligible for 10-year averaging. 4 or 7
      B Designated Roth Account distribution. 1, 2, 4, 7, 8, G, L, M, P, or U
      C Reportable death benefits under section 6050Y. D
      D Annuity payments from nonqualified annuities and distributions from life insurance contracts. 1, 2, 3, 4, 7, or C
      E Distributions under Employee Plans Compliance Resolution System (EPCRS). None
      F Charitable gift annuity. None
      G Direct rollover and direct payment. 4, B or K
      H Direct rollover of a designated Roth account distribution to a Roth IRA. 4
      J Early distribution from a Roth IRA. 8 or P
      K Distribution of IRA assets not having a readily available FMV. 1, 2, 4, 7, 8, or G
      L Loans treated as deemed distributions. 1, 2, 4, 7, or B
      M Qualified plan loan offset. 1, 2, 4, 7, or B
      N Recharacterized IRA contribution. None
      P Excess contributions plus earnings/excess deferrals taxable. 1, 2, 4, B, or J
      Q Qualified distribution from a Roth IRA

      Note:

      If a code, 8 or P is present with Q, delete the entry and enter code J.

      None
      R Recharacterized IRA contribution. None
      S Early distribution from a SIMPLE IRA in first two (2) years, no exception. None
      T Roth IRA distribution, exception applies.

      Note:

      If a code, 8 or P is present with T, (delete) the entries and enter code J.

      None
      U Dividends distributed from an ESOP. B
      W Charges or payments for purchasing qualified long-term care insurance contracts under combined arrangements. 6

    4. If this field is transcribed in error use (c) above to correct when code is missing or invalid.

    5. Blank the field if filer intent is not established.

  8. Field H, IRA/SEP Indicator

    1. Entry from checkbox next to box 7 labeled, "IRA/SEP/SIMPLE."

    2. The valid code "1" if box 7 is checked.

    3. Blank if the box is not checked.

  9. Field I, Money amount 6

    1. Money amount located in box 10, "Amount allocable to IRR within 5 years."

    2. Accept only positive (including zero) amounts.

  10. Field J, Box 11

    1. Date in box 11, "1st year of desig. Roth contrib."

    2. Valid format of YYYY with the first two characters of "20."

      Exception:

      The year listed can equal the current year, but not a future year.

    3. Blank acceptable.

  11. Field K, Box 12

    1. Entry from checkbox 12, "FATCA filing requirement."

    2. The valid code is 1 if the box is checked.

    3. Blank valid if not checked.

  12. Field L, Box 13

    1. Date from box 13, "Date of payment."

    2. Accept blanks or leading blanks followed by a date. Valid format equals YYYYMMDD.

    3. If the date is not entered correctly, enter the date to the format above.

    4. If the date is entered incorrectly by the filer, delete the transcribed information.

  13. Field M through U require blanks.

Section 16 Error Register

  1. Section 16 of the error register contains the payer entity data. See IRM 3.12.8.3.4 (7) for location of the payer entity and a list of identifying terms on the various returns.

  2. No section 16 appears for Form 1096, Annual Summary and Transmittal of U.S. Information Returns, document code 69.

  3. Fields in section 16 listed below:

    1. Field A, Payer Name Line 1, length 40

    2. Field B, Payer Name Line 2, length 40

    3. Field C, Payer Street Address, length 35

    4. Field D, Payer City, length 22

    5. Field E, Payer State code, length 2

    6. Field F, Payer ZIP Code, length 9

    7. Field G, Payer TIN, length 9

    8. Field H, TIN Validity Bypass Code, length 1 (always blank)

    9. Field I, Payer DLN, length 14

    10. Field J, Foreign Country Code, length 2

  4. When any field in section 16 is invalid, all remaining documents in the submission fall to the error register with "%%" in the document identification line. Duplicate errors no longer print with $$.

    1. When "%%" is present, only the first section 16 error (on the document without the "%%" ) requires correction action.

    2. When "%%" is present, unrelated errors could loop if present in sections 01, 02 and/or 06.

    3. Do not use AC 7 to release a document with "%%." If AC 7 is used, all remaining documents in the block continue to loop until each document is individually corrected.

  5. A change in payer is determined by any change to section 16 data, not just a change to the payer TIN. Therefore, when correcting section 16, ensure the new data generated is correct for all remaining returns for the payer. If it is not, correct the proper field at each point of change.

  6. If a foreign address appears in section 16 for a payer, delete the address fields. Never accept a foreign address for Section 16.

  7. To blank a section 16 field, line through the incorrect data.

Section 16, Field A, Payer Name Line 1

  1. Characters can include A through Z, 0 through 9, blank, hyphen or ampersand. The field cannot contain all blanks.

  2. If the field is invalid or is originally transcribed in error, line through the field and enter the correct payer name above it.

    1. Shorten a payer name of more than 40 positions to 40 positions or less using standard abbreviations when possible. Do not use standard abbreviations if doing so alters the name control.

    2. If the payer name is not present on the return and you cannot determine it from other returns for the payer, research the Accounts Register and name Directory (in the appropriate campus) to develop the payer name. Do not enter a payer name of "UNKNOWN" on the error register.

  3. If a payer name is not found, use AC 2, error/reject disposition code "D" to delete the document (except document codes 98 and 32) from the error register. Dispose of returns (except document codes 98 and 32) per Document 12990, Records and Information Management Records Control Schedules.

  4. Do not dispose of document codes 98 and 32. Enter the payer name on the document as "Unknown."

  5. If the payer name is in error for a consecutive group of returns, only the payer name for the first return in the consecutive series is corrected. See also IRM 3.12.8.2.4 (4), Information Return Processing Action Codes.

Section 16, Field B, Payer Name Line 2

  1. No validity check of this field. However, correct any transcriptions errors noticed.

  2. If the Name Line 2 contains transcription errors, line through the erroneous name and enter the correct name above it.

  3. If a foreign street address appears in the Name Line 2 field, delete the entry.

Section 16, Field C, Payer Street Address

  1. Validity and consistency checked on all documents.

  2. Accept the following characters: Alpha (A through Z), Numeric (0 through 9), hyphen (-), blank ( ), and slash (/).

  3. Correct transcription errors or omissions if noticed.

  4. Delete entries of foreign addresses.

  5. Enter the single character "Z" as the street address if blank on the document.

Section 16, Field D, Payer City

  1. The city if present can contain only alpha characters. If the city contains numerics correct it.

    Example:

    Correct "29 Palms" to "Twenty nine Palms."

  2. Enter APO, DPO and FPO to the first three positions of the city.

  3. Delete an entry of a foreign country in the city field.

  4. Enter three "Z" 's ("ZZZ" ) if unable to determine the city.

  5. Major City Codes acceptable.

Section 16, Field E, Payer State Code

  1. The state and the ZIP Code present must match, if not both fields appear in error.

  2. The state code is required if a Major City Code is not used. If the state is present it must fall in the valid range of the state codes. If the state code is not valid, the ZIP Code is not identified as a field in error unless it is not a valid configuration. Always check the ZIP Code field when the State field is corrected. Do not assume the ZIP Code is correct.

  3. If you cannot determine the correct state blank field E. Correct the appropriate fields (E and/or F).

  4. If a period (.) is entered in the state code field for a foreign address, delete the period (.).

  5. Correct field E on the error register when the state is in error unless another correction action resolves the field E problem.

  6. If a Major City Code is present and a state code, the state code is in error. Correct by deleting the state code present if a valid Major City Code is also present.

Section 16, Field F, Payer Zone Improvement Plan (ZIP) Code

  1. The ZIP Code is required and must conform to the following:

    1. All numerics.

    2. Contain five or nine numerics.

    3. Matches the state present. Check the first three digits in the ZIP Code match the state followed by two numerics other than 00. Add 01 to a field with only three numerics present.

    4. No embedded blanks.

    5. Left justification required.

  2. Correct the ZIP Code if it is in error and if you can determine it from the state present. See Exhibit 3.12.8-6, Zone Improvement Plan (ZIP) Code Range Sorted by Code, then correct field F by entering the first three-digit ZIP Code shown for the state, followed by the numerics 01.

  3. Always verify the ZIP Code for the state, even if only the state is identified as a field in error. Use Exhibit 3.12.8-6, Zone Improvement Plan (ZIP) Code Range Sorted by Code.

  4. Blank is not acceptable for the ZIP Code when a Major City Code is present in City field. If blank, enter a three-digit ZIP Code for the MCC followed by the numerics 01.

Section 16, Field G, Payer Taxpayer Identification Number (TIN)

  1. Field G, Payer TIN must contain nine (9) numerics.

  2. If the Payer TIN is invalid, line through the invalid TIN and enter the correct TIN above it. Check to see if another payer TIN is on the return or other returns for the payer and use it if found. Research the input return. If indeterminable, enter nine 9's in field G.

  3. If the Payer TIN is in error for a consecutive group of returns correcting the payer TIN of the first return in the consecutive series clears all records. See also IRM 3.12.8.2.4 (4), Information Return Processing Action Codes.

Section 16, Field I, Parent Document Locator Number (DLN)

  1. This field contains the document locator number (DLN) of the transmitting Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

  2. Required for all income information returns except Form 1096, Annual Summary and Transmittal of U.S. Information Returns and foreign returns.

  3. If present, this field requires 14 numerics.

    1. Positions 1 and 2 must consist of valid File Location Code (FLC).

    2. Below lists FLCs for documents processed through ISRP and SCRIPS.

      Service Center (Initials) ISRP
      FLC
      SCRIPS
      FLC(s)
      Austin Submission Processing Campus (AUSPC) 18 73, 74, 75, and 76
      Kansas City Submission Processing Campus (KCSPC) 09 36, 39, 41, and 43
      Ogden Submission Processing Campus (OSPC) 29 84, 86, 91, and 94

    3. Positions 3 requires tax class code of 5.

    4. Positions 4 and 5 require 69.

    5. Positions 6 through 8 consist of 001 through 366.

      Exception:

      Rarely SCRIPS documents (Account Type Code S) assign elevated Julian dates, 401 through 766.

    6. Positions 9 through 13 consist of 00000 through 99999.

    7. Position 14 reflects the current year digit, or the current year digit minus one.

  4. If field I appears transcribed in error, line through the field and enter the correct parent DLN above it.

  5. If the parent DLN is missing, blanks clear the error register on correction pass when AC 7 or AC 6 in used. If AC 6 is used on sections 01, 02, and/or 06 only, the document loops because of blanks in payer DLN in section 16.

    Note:

    AC 7 does not work if there is a "%%" appearing in this section.

    Note:

    If the section has "%%," you must enter a parent DLN on the first document to clear all documents from the error register on the first pass with an AC 6. If AC 7 is used on the first document in first pass, all documents in the block continue to loop until you clear each one using AC 7 or entered a DLN and AC 6 for each one. Therefore, do not clear the first document using anything other than a DLN correction with AC 6.

  6. If the parent DLN is in error for a consecutive group of returns, correct only the first parent DLN on the first return in the consecutive series to clear all returns from the error file. See also IRM 3.12.8.2.4 (4), Information Return Processing Action Codes.

Section 16, Field J, Foreign Country Code

  1. This field is required for all Account Type Code "T" or "J." It is not valid for any other Account Type Codes.

  2. See Exhibit 3.12.8-5, Foreign Country and United States (U.S.) Possession Codes, for the valid range of foreign country codes.

  3. If this field is in error, correct the error register by entering the appropriate country code.

  4. Before correcting field J, check the Account Type Code to determine if the document is blocked correctly. If mis-blocked, see IRM 3.12.8.2.10, Delinquent Transmittals.

Disposition of Form 1096, Annual Summary and Transmittal of U.S. Information Returns

  1. Keep all ISRP entered Form 1096, Annual Summary and Transmittal of U.S. Information Returns in DLN order by year. Once finished with the returns in ERS send the SCRIPS unit for imaging retention. Dispose of all Form 1096, Annual Summary and Transmittal of U.S. Information Returns, once imaged per Document 12990, Records and Information Management Records Control Schedules.

  2. Keep the documents in searchable order while suspending for disposition or working the error register loops per Document 12990, Records and Information Management Records Control Schedules.

Information Return Processing Format Codes and Required Section 06 Fields for Returns

The alpha characters in the fourth to final columns represent the fields present for each return type.

  • R = Required Input

  • V = Input not required

  • All non-R or V fields require blanks; no input allowed

Document Code ISRP Format Code A B C D E F G H I J K L M N O P Q R S T U
03 260 R R R V V V V V                          
10 037 R R V V V V V V V V V V V V V V V V V    
16 361 R R V                                    
25 048 R R R R R V                              
26 049 R R R R R R R R                          
27 023 R R R R R V                              
28 022 R R R R R R V R R R V V R R V V R V V V  
31 031 R R R V V V                              
32 010 R V R R                                  
43 362 R R V                                    
50 050 R V V V R R R V V R V V R R R R V        
69 007 V V R R R R V V V V V                    
71 571 R V V R                                  
72 028 R R                                      
73 029 R R V V                                  
74 355 R R R R R R R R R R R R R R R R R        
75 396 R R V V V R                              
78 357 R V V V V V V R V V R V V V R            
79 021 V V V R R V R V V R R V V R R V R R R R R
80 354 R R V V                                  
81 353 R R V R R R V V V V V                    
83 359 R V R R R V V V R                        
84 358 R V                                      
85 397 R R V V R R                              
86 026 R R R R R R R V V V                      
91 032 R R R R R R R R R R R R R R R V R R      
92 033 R R R R R R V R R R R V R V R V          
93 034 R R V R R V V                            
94 035 R R R V V                                
95 040 R R R R R R V R R R R R V R R            
96 060 R R R R R R V R V R R R                  
97 061 R R R R R R R R R R R V                  
98 025 R R V R R R V V R V V V                  

Information Return Processing Section 06 Fields Transcribed or Scanned

"✓" represents box numbers in a checkbox indicator.

Return Document Code A B C D E F G H I J K L M N O P Q R S T U
03 1 2 3 4 5 6 7 8                          
10 1a 1b 2 3 4 5a 5b 5c 5d 5e 5f 5g 5h 5i 5j 5k 5l    
16 1 2 NAME                                    
25 1 2 3 4 5 6                              
26 1 2 3 4 5 6 7 8                          
27 1 2 3 4 5 6                              
28 1 2 3 4 5 6 7 8 9 10 11 12a 12b 13a 13b 13c 14a 14b 15a 15b  
31 1 2 3 4 5 6                              
32 1 2 4 7                                  
43 1 2 NAME                                    
50 1a 1b 2a 2b 3a 3b 4a 4b 5 5a 5b 5✓                  
71 1 2✓ 4                                    
72 1 2                                      
73 1 2 3 4                                  
74 1a 1b 2 3 4 5a 5b 5c 5d 5e 5f 5g 5h 5i 5j 5k 5l        
75 1 2 3 4 5 6                              
78 1 2b 2c 2d 3 4a 4b 4c 5a 5b 5c 6a 6b 6c 7            
79 1a 1b 1c 1d 1e 1f 1g 2✓ 3✓ 4 5✓ 6✓ 7✓ 8 9 CUSIP 10 11 12 13
80 2 4 5 6                                  
81 1 2 3 4 5 6 7 8 9 10 11                    
83 1 4 5 6 7 8 9 10                        
84 1 2                                      
85 1 2 3 4 5 6 7                            
86 1 2 3 4 5 6 7 8 9                        
91 1a 1b 2a 2b 2c 2d 2e 2f 3 4 5 6 7 9 10 11 12      
92 1 2 3 4 5 6 7 8 9 10 11 12 13 14            
93 1 2 3 ITIN INAME 5 DATE                            
94 1 2 3 4 5                                
95 1 2 3 4 5 6 7✓ 8 9 10 11 12 13 14            
96 1 2 3 4 5 6 7 8 9 10 11                  
97 1 2 3 4 5 6 7 8 9 10 11 12 13                
98 1 2a 2b✓ 3 4 6 7 10 11 12✓ 13                  

Form 1096 Output - Return Box (Line) Numbers Transcribed

Field Field Description
All See IRM 3.12.8.5.12, Section 06 Document Code 69 Format Code 007, Form 1096, Annual Summary and Transmittal of U.S. Information Returns, for details.
A Field A is the number of original documents transmitted from box 3. This number is coded before a slash (i.e., "25/" ) on Account Type Code B and C documents.
B Field B is the number of amended documents transmitted from box 3. This number is coded after a slash (i.e., "/25" ) on Account Type Code B and C documents.
C Field C is the amount of federal income tax withheld in box 4.
D Field D is the total amount of money reported in box 5.
E Field E is the Taxpayer Identification Number (TIN) Type and type of document transmitted code.
F Field F is the Type of Payment Code(s).
G Field G is the delinquent return indicator. It is an alpha or number followed by a date in the YYYYMMDD format. Find these entries in the first seven boxes under the wording "For Official Use Only."
H Field H is the correspondence indicator. This entry is found in the last two boxes under the wording "For Official Use Only."
I Field I is the number of original documents subject to penalty. This field is found in the bottom-left corner of Account Type Code B and C documents, coded before a slash (i.e., "25/" ).
J Field J is the number of amended documents subject to penalty. This field is found in the bottom-left corner of Account Type Code B and C documents, coded after a slash (i.e., "/25" ).
K Field K is the year indicator for prior years. Account Type Code B and C documents contain this entry in the bottom-right corner of the document.

Major City Codes Sorted by Major City

Always add the numerics 01 to the three-digit zone improvement plan (ZIP) Codes shown below:

Major City State Code Major City Code (MCC) ZIP Code
Aberdeen SD AD 574
Abilene TX AB 796
Akron OH AD 443
Albany GA AY 317
Albany NY AL 122
Albuquerque NM AQ 871
Alexandria VA AX 223
Allentown PA AW 181
Amarillo TX AM 791
Anaheim CA AH 928
Anchorage AK AN 995-996
Anderson SC AJ 296
Ann Arbor MI AP 481
Arlington VA AR 222
Arvada CO AV 800, 804
Asheville NC AS 288
Atlanta GA AT 303, 311, 399
Atlantic City NJ AC 084
Auburn AL AF 368
Augusta GA AG 309
Augusta ME AA 043
Aurora CO AZ 800
Aurora IL AO 605
Austin TX AU 733, 787
       
Bakersfield CA BD 933
Baltimore MD BA 212
Baton Rouge LA BR 708
Battle Creek MI QK 490
Beaumont TX BT 777
Bethlehem PA BM 180
Berkeley CA BE 947
Biloxi MS BL 395
Binghamton NY BC 139
Birmingham AL BI 352
Bismarck ND BB 585
Bloomington IN BQ 474
Boca Raton FL BZ 334
Boise ID BS 837
Bossier City LA BW 711
Boston MA BO 021, 022
Boulder CO BV 803
Bradenton FL BG 342
Bremerton WA BY 983
Bridgeport CT BP 066
Bronx NY BX 104
Brooklyn NY BK 112
Brownsville TX BJ 785
Buffalo NY BF 142
Burlington VT BU 054
       
Cambridge MA CB 021, 022
Camden NJ CD 081
Canton OH CA 447
Cape Coral FL CF 339
Cedar Rapids IA CR 524
Champaign IL CX 618
Chapel Hill NC CJ 275
Charleston SC CT 294
Charleston WV CW 253
Charlotte NC CE 282
Charlottesville VA CV 229
Chattanooga TN CG 374
Chesapeake VA CP 233
Cheyenne WY CY 820
Chicago IL CH 606-608
Cincinnati OH CN 452, 459
Clear Water FL CQ 337
Cleveland OH CL 441
Colorado Springs CO CS 809
Columbia SC CU 292
Columbus GA CM 318-319
Columbus OH CO 430, 432
Corpus Christi TX CC 783, 784
Cumberland MD CK 215
       
Dallas TX DA 752, 753
Davenport IA DP 528
Dayton OH DY 453-454
Daytona Beach FL DF 320, 321
Dearborn MI DB 481
Decatur IL DT 625
Denver CO DN 800-802
Des Moines IA DM 503
Detroit MI DE 482
Dubuque IA DQ 520
Duluth MN DL 557-558
Durham NC DU 277
       
East Lansing MI ET 488
Easton PA EA 180
East Orange NJ EO 070
East Saint Louis IL ES 622
Elizabeth NJ EL 072
El Paso TX EP 799, 885
Erie PA ER 165
Eugene OR EU 974
Evanston IL EN 602
Evansville IN EV 477
       
Fall River MA FR 027
Far Rockaway NY RK 110, 116
Fargo ND FA 581
Fayetteville AR FB 727
Fayetteville NC FN 283
Flint MI FT 485
Florence AL FC 356
Florence SC FE 295
Flushing NY FG 113
Fort Lauderdale FL FL 333
Fort Prince FL FP 349
Fort Wayne IN FY 468
Fort Worth TX FW 761
Fresno CA FO 936-938
       
Galveston TX GA 775
Gainesville FL GF 326
Gary IN GY 464
Gastonia NC GN 280
Glendale CA GL 912
Grand Rapids MI GR 495
Greeley CO GC 806
Green Bay WI GB 543
Greensboro NC GO 274
Greenville SC GV 296
Greenwood MS GW 389
       
Hackensack NJ HS 076
Hamilton OH HA 450
Hammond IN HM 463
Hampton VA HP 236
Harlingen TX HR 785
Hartford CT HD 061
Harrisburg PA HG 171
Hattiesburg MS HT 394
Helena MT HE 596
Hialeah FL HI 330
High Point NC HC 272
Hollywood FL HW 330
Honolulu HI HL 968
Houston TX HO 770-772
Huntington WV HN 257
Huntington Beach CA HB 926
Huntsville AL HU 358
       
Independence MO IE 640
Indianapolis IN IN 462
Inglewood CA ID 903
Irvine CA IV 926-927
Irving TX IR 750
       
Jackson MS JN 392
Jacksonville FL JV 320, 322
Jamaica NY JA 114
Jamestown NY JM 147
Janesville WI JE 535
Jersey City NJ JC 070, 073
Johnson City TN JH 376
Johnstown PA JO 159
Joliet IL JT 604
Jonesboro AR JB 724
       
Kalamazoo MI KZ 490
Kansas City KS KA 661
Kansas City MO KC 641, 649
Kennewick WA KW 993
Kenosha WI KE 531
Kingsport TN KP 376
Knoxville TN KN 379
       
Las Cruces NM LZ 880
Lafayette IN LF 479
Lafayette LA LL 705
Lake Charles LA LC 706
Lakeland FL LK 338
Lakewood CO LW 800, 802, 804
Lancaster PA LP 176
Lansing MI LG 489
Laredo TX LD 780
Las Vegas NV LV 891
Lawrence MA LQ 018
Lewiston ME