TAS and the Operating Functions have reached agreements outlining the procedures and responsibilities for processing Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete a case transaction rests with that Operating Function. These agreements are known as Service Level Agreements (SLA).

In preparation for a case being referred to an Operating Function, the TAS employee is responsible for:

The Operating Function is responsible for:

For further information, refer to the SLAs online at http://tas.web.irs.gov/default.aspx under the heading "Policy/Procedures/Guidance."

BMF Identification Theft is increasing. If a tax examiner in Submission Processing (SP) Error resolution System (ERS) finds a case with attachments or correspondence indicating the taxpayer is a victim of ID Theft, provide the whole case to your senior/lead. Your senior/lead will expedite the case to the P&A staff for referral to one of the SP BMF ID Theft liaisons. The taxpayer must clearly state that they are a victim of "ID Theft" .

BMF Identification Theft is increasing. If a tax examiner in Submission Processing (SP) Error resolution System (ERS) finds a case with attachments or correspondence indicating the taxpayer is a victim of ID Theft:

The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Error Resolution System (ERS) processing IRMs.

Topics for BMF Consistency have been identified and developed as a coordinated effort between Cincinnati, Ogden, and Paper Processing Branch BMF Code and Edit/ERS.

BMF consistency subsections are identified by a ♦ (diamond) before and after the title.

Text in normal print is the common processes for BMF returns. The text in BOLD print is form specific and applies to this IRM only.

Program guidance doesn’t always apply to the work in all offices in all areas of the

Guidance that deviates from the IRM or that establishes new practices (even if temporary) must be:

When you prepare a request:

Guidance which deviates from the IRM may require disclosure on IRS.gov to adhere to FOIA laws. For information on the E-FOIA criteria and requirements, see IRM 1.11.1.3.1, Transparency of Instructions to Staff.

A Field secured return is a return obtained from the filer by EO Field personnel.

Identify as a secured return if the return or attachment is noted with wording similar to "Delinquent Secured Return" or "Secured by TE/GE" .

Route the secured return to the Area Office via Form 4227 notated "Unprocessable Secured Return" if the organization's name and EIN are missing.

Correspond for missing schedule(s) or missing signature as required.

Enter CCC "R" , "D" and/or "V" if applicable if the Area Office indicated that penalties and/or interest must not be assessed.

A substitute for return is prepared by EO compliance functions if the filer does not provide a return. The return can be identified as a substitute for return by wording similar to "SFR" , "Substitute for Return" or "6020(b)" anywhere on the document. The agent will edit "TC 599 CC 096" at the bottom margin of the return. At the top of the return, the agent will write "Substitute for Return Secured by TE/GE" .

Do not correspond for missing information on returns marked Substitute for Return, SFR, or 6020(b).

Enter CCC "R" and/or "V" if applicable if the Area Office indicated that penalties and/or interest must not be assessed.

If the return is unsigned, it will be returned to the filer. DO NOT correspond for missing signatures on returns printed from the CIS system, returns with "This is a live return from SMIP" across the top or MEF returns that have "e-File GRAPHIC print DO NOT PROCESS" across the top of the return. A signature can consist of either an original signature (including a printed signature, rubber stamped, mechanical device or signed by a software program.

Filing of original tax returns via fax will only be allowed as part of a return perfection process (e.g., securing missing schedule or missing signature) initiated by the IRS where contact with the taxpayer has been made and documented. These faxed signatures will be accepted as well as those received from any internal source.

Returns may have originally been filed electronically (E-File). These returns may be identified by the presence of MOD E-File printouts in lieu of an actual return or wording such as "e-file GRAPHIC print - DO NOT PROCESS" printed at the top of the return. Do not correspond for missing signatures on these documents if they are being reprocessed and they were originally accepted through the E-File system.

When corresponding for a missing signature only use the 0143-C letter. If you are corresponding for other missing information also, use the 2694-C, 2695-C, 2696-C, 2697-C or 2698-C as appropriate.

A frivolous argument is used for the purpose of expressing dissatisfaction with the substance, form or administration of the tax laws by attempting to illegally avoid or reduce tax liabilities. Recognized frivolous arguments made by businesses include, but are not limited to, the examples in IRM 25.25.10, Frivolous Return Program (FRP).

Review the return to determine whether it appears to be a frivolous return.

For the Incomplete Returns Program, the reasonable cause must state why the information cannot be furnished and/or why it wasn't furnished when the return was initially filed.. Refer to Figure 3.12.12-1:

If an organization attempts to file a return electronically and is unable to do so, the electronic return originator (ERO) will receive notification from the Service that the return was not accepted for processing. The ERO is required to inform the filer of the reject within 24 hours, provide the filer with an explanation of why the return was not accepted through the electronic system, and inform them they must file a paper return. A paper return received after the return due date will be considered timely filed if the filer indicates on the return or an attachment that an unsuccessful attempt was made to timely file electronically and the paper return is received within 10 days of the notice of rejection.

The received date will be the return due date if (2) above applies.

SSPND 351 or enter Action Code "3" as applicable to reject the return.

Rejects will contact the EO ERS/Reject Program Analyst by e-mail or OCS and send a screen print of the page of the return when possible. The issue will be responded to within 48 hours of contact.

Check all Fields of the section and verify that Fields are entered as coded.

All Fields present for the section must be examined and the necessary correction(s) made to all the Fields.

If the section needs to be deleted, use Command Code DLSEC to delete the section.

If no corrections are needed, drop to the bottom of the screen and transmit.

Error Code 001 will generate when any of the following conditions are present:

Correct all misplaced entries, coding and transcription errors.

Do not send the following returns to Statute Control for clearance. Instead, enter "W" in Field 01CCC and on the return and continue processing:

Compare the displayed Fields with the return and attachments. If incorrect, overlay the screen with the correct information.

When Statute Control returns the cleared document, enter CCC "W" in Field 01CCC and continue processing.

Statue Control request the record to be voided to them, RJECT 640.

Error Code 002 will generate when the Name Control mismatched against the National Account Profile (NAP) or the Entity Index File (EIF).

Before taking any additional research steps to resolve Error Code 002, drop the cursor to the bottom of the screen and transmit. This will ensure that any prior changes to the Name Control have posted to the NAP. If Error Code 002 reappears, continue with the remainder of the correction procedures.

When corrections are made to Field 01NC or Field 01EIN, the computer will validate the entries with the NAP and reset the OLE indicators as appropriate upon transmitting the ERS screen.

Correct all misplaced entries, coding and transcription errors.

Compare the displayed Fields with the return and attachments. If incorrect, overlay the screen with the correct information.

If Field 01NC and the Name Control on the return or attachments are the same but differ from the underprint in Field 01NC, research INOLES to determine the correct Name.

If a new EIN is located, verify the Name Control using CC INOLES.

If the Name on the return or attachment does not agree with the Name on INOLES or there is an indication of a name change, research ENMOD for a new name.

If the Name change has not been made, research ENMOD for a pending TC 013.

Error Code 003 will generate when any of the following conditions is present:

Correct all misplaced entries, coding and transcription errors.

Compare the displayed Fields with the return and attachments. If incorrect, overlay the screen with the correct information.

Compare the EIN from NAMEB/NAMEE to the EIN on the return.

If IDRS is not available, SSPND 351.

Error Code 003 will generate when any of the following conditions is present:

Correct all misplaced entries, coding and transcription errors.

Compare the displayed Fields with the return and attachments. If incorrect, overlay the screen with the correct information.

Compare the EIN from NAMEB/NAMEE to the EIN on the return.

If IDRS is not available, SSPND 351.

Error Code 004 will generate when any of the following conditions is present:

Before taking any additional research steps to resolve Error Code 004, drop to the bottom of screen and transmit. This will ensure that any prior changes to the Name Control/EIN have posted to the NAP. If Error Code 004 reappears, continue with the remainder of the correction procedures.

When corrections are made to Field 01NC or Field 01EIN, the computer will validate the entries with the NAP and reset the OLE indicators as appropriate upon transmitting the ERS screen.

Correct all misplaced entries, coding and transcription errors.

Compare the displayed Fields with the return and attachments. If incorrect, overlay the screen with the correct information.

If Field 01NC and the Name Control on the return or attachments are the same but differ from the underprint in Field 01NC, research INOLES to determine the correct Name.

If a new EIN is located, verify the Name Control using CC INOLES.

If the Name on the return or attachment does not agree with the Name on INOLES or there is an indication of a name change, research ENMOD for a new name.

If the Name change has not been made, research ENMOD for a pending TC 013.

Error Code 004 will generate when any of the following conditions is present:

Before taking any additional research steps to resolve Error Code 004, drop to the bottom of screen and transmit. This will ensure that any prior changes to the Name Control/EIN have posted to the NAP. If Error Code 004 reappears, continue with the remainder of the correction procedures.

When corrections are made to Field 01NC or Field 01EIN, the computer will validate the entries with the NAP and reset the OLE indicators as appropriate upon transmitting the ERS screen.

Correct all misplaced entries, coding and transcription errors.

Compare the displayed Fields with the return and attachments. If incorrect, overlay the screen with the correct information.

If Field 01NC and the Name Control on the return or attachments are the same but differ from the underprint in Field 01NC, research INOLES to determine the correct Name.

If a new EIN is located, verify the Name Control using CC INOLES.

If the Name on the return or attachment does not agree with the Name on INOLES or there is an indication of a name change, research ENMOD for a name.

If the Name change has not been made, research ENMOD for a pending TC 013.

Error Code 007 will generate when the Received Date is earlier than the first day of the Tax Period.

Remember we will no longer correspond with the filer for information. Substitute correspond with send the return back to the filer.

Correct all misplaced entries, coding or transcription errors.

Compare the displayed Fields with the return and attachments. If incorrect, overlay the screen with the correct information.

Error Code 007 will generate when the Received Date is earlier than the first day of the Tax Period.

Correct all misplaced entries, coding or transcription errors.

Compare the displayed Fields with the return and attachments. If incorrect, overlay the screen with the correct information.

Tax Period beginning date is later than tax period end date (e.g., if tax period is 201605, and tax period beginning is 6/1/2016 or later).

CCC "Y" is present and Field 01TXB is blank.

CCC "F" is present and Field 01TXB is blank.

Correct any transcription errors.

Determine the correct tax period beginning date and enter it in Field 01TXB.

If CCC "Y" or "F" are present enter the correct date in Field 01TXB.

Field RMIT> is present, there is no data in Section 06 and Field 01CCC "G" is not present

Compare the displayed Fields with the return.

Section 02 is invalid if all entries are not present as follows:

Correct any coding or transcription errors.

The data entered cannot exceed the maximum number of character spaces for each Field. See Document 7475 for standard abbreviations.

If a Major City Code is present, and no street address is available, research INOLE for a valid street address, if none is available delete the Section.

If the Major City Code is correct and the state is present, delete Field 02ST.

If the address cannot be corrected from the information on the return, DLSEC 02 if nothing is present in Field 02CON. If Field 02CON is present, delete the address only.

Error Code 015 will generate when any of the following conditions is present:

Correct all misplaced entries, coding and transcription errors.

Compare displayed Fields with the return. If incorrect, overlay the screen with the correct information.

Error Code 015 will generate when any of the following conditions is present:

Correct all misplaced entries, coding and transcription errors.

Compare displayed Fields with the return. If incorrect, overlay the screen with the correct information.

The ZIP Code is inconsistent with the Major City Code or State Code.

Correct any coding or transcription errors.

The data entered cannot exceed the maximum number of character spaces for each Field. See Document 7475 for standard abbreviations.

If unable to determine a valid ZIP code and:

The ZIP Code is inconsistent with the Major City Code or State Code.

Correct any coding or transcription errors.

The data entered cannot exceed the maximum number of character spaces for each Field. See Document 7475 for standard abbreviations.

If unable to determine a valid ZIP code and:

The Tax Period Underprint does not agree with the month on the Entity Index File and CCC "F" or "Y" are not present.

Before taking any additional research steps to resolve Error Code 026, drop the cursor to the bottom of the screen and transmit. This will ensure that any prior changes to the Accounting Period have posted to the NAP. If Error Code 026 reappears, continue with the remainder of the correction procedures.

Refer to Exhibit 3.12.12-1, for Error Correction procedures.

Refer to Field 01CCC instructions in IRM 3.12.12.9.5.2(3) for Final return procedures.

Correct any coding or transcription errors.

Refer to Exhibit 3.12.12-2 for Rejects procedures.

If Field 01PIC is "1" and the Field 01RCD is before the Return Due Date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Correct any transcription errors.

Delete the Penalty and Interest Code Field if:

Delete the Penalty and Interest Code Field if:

Field 01CRD is earlier than Field 01RCD.

Field 01CRD is later than the processing date.

Correct any coding or transcription errors.

The Received Date will either be stamped or edited on the return. If the Received Date is missing or illegible, determine the date in the order listed in IRM 3.12.12.9.6.2.

A CRD will be determined from the date the complete reply was received in the processing center.

If return is a 1120-POL or 5227 and "No Reply or an incomplete reply is received" , enter CCC "3" in Field 01CCC and delete Field 01CRD.

Field 01CCC "9" is present and Field 05LIH, Low Income Housing Credit F8586, or Field 0646B, Recapture Low Income Housing Credit, are blank.

Field 05LIH or Field 0646B are present and CCC "9" is not present.

Correct any coding or transcription errors.

If Form 8586 is present and the filer has claimed a credit on Line 5 of Form 8586, allow that part of the credit. Enter the allowable portion of the credit in Field 05LIH if no credit is claimed on Line 4. If an amount is on Line 4, all of the following must be present: Form 8609; Schedule A (Form 8609); an entry on Schedule A, Line C (BIN), and Line 3 (qualifying basis); and signatures in both Parts I and II of Form 8609:

Field 07CRE, Credit Elect, and Field 01CCC "F" are present.

Correct any coding or transcription errors.

If the return is not final delete Computer Condition Code "F."