3.12.2 Individual Master File Error Resolution General Instructions

Manual Transmittal

November 26, 2019

Purpose

(1) This transmits revised IRM 3.12.2, Individual Master File Error Resolution General Instructions.

Material Changes

(1) IRM 3.12.2 was updated to match the Tax Year 2019 Form 1040 and Schedules 1 through 3. Annual updates, links, and dates were revised, and editorial changes have been made throughout the IRM.

(2) Reorganized fields in Sections 01 through 05 to reflect the layout of TY19 Form 1040, and moved verified fields from Sections 01 through 05 to new Section 94.

(3) Fields in Section 03 are transcribed from TY19 Form 1040, page 1, line 1 through page 2.

(4) Fields in Section 04 are transcribed from Schedule 1.

(5) Fields in Section 05 are transcribed from Schedule 2 and Schedule 3.

(6) Form 1040A and 1040EZ field designators have been revised according to the Form 1040 layout.

(7) SSPND 611 was removed from correction procedures throughout the IRM. Action Code 611 is only for payments processing.

(8) Updated Fields 07GMD and 07NMD as ERS input only fields.

(9) Added new Section 12 fields transcribed from Form 8949 with Z code.

(10) Added a new field to Section 22 for Form 8994 credit.

(11) Removed procedures regarding Unallowable Code 83 in Section 26.

(12) Deleted IRA Type Indicator (Field 29ITI/30ITI) from Section 29 and Section 30.

(13) Added new Section 55 for Form 8995/Form 8995-A.

(14) Added new Section 57 for Form 8978.

(15) Added new Section 64 for Form 461.

(16) Added new Section 67 for Form 6252.

(17) Added new Section 76 for Form 965-A.

(18) Added new Section 94 for ERS input only verified fields that were moved from Sections 01 through 05.

(19) Exhibit 3.12.2-6 Deleted Unallowable Code 83.

(20) Exhibit 3.12.2-7 Added Virgin Islands as credit reduction state for TY19.

(21) IRM 3.12.2.3.4(3) Removed information regarding a specific scheme.

(22) IRM 3.12.2.3.4(3) Revised guidelines as provided by IVO.

(23) IRM 3.12.2.4.3.20(6) Removed Julian Date 156 if a leap year.

(24) Exhibit 3.12.2-10 Revised ZIP Code range for Virginia and Arkansas.

(25) IRM 3.12.2.2.9.1(3) Added exception for second correspondence on ACA issues.

(26) IRM 3.12.2.4.3.8(2) Updated the ZIP Code range for APO/AE.

(27) IRM 3.12.2.6.4.43(1) Added TY18 instructions for Field 03DPA.

(28) IRM 3.12.2.40.3 Clarified Section 50 invalid conditions.

(29) Exhibit 3.12.2-10 Updated the ZIP Code range for America/Europe.

(30) IRM 3.12.2.3.19(2) Revised instruction to attach a form if necessary.

(31) IRM 3.12.2.4.3.14(3) Updated Field 01EXC procedures.

(32) IRM 3.12.2.5.6(4) Added the condition that dependents are claimed for child tax credit.

(33) IRM 3.12.2.5.7 Added the condition that dependents are claimed for credit for other dependents.

(34) IRM 3.12.2.10.2(1) Corrected the location of Field 07STI.

(35) IRM 3.12.2.10.4.6 Revised instructions for Field 07STI.

(36) IRM 3.12.2.24.4.1(3) Revised disaster declaration number conditions, added Form 4684 line 15 and changed Schedule A line 15 to line 16.

(37) IRM 3.12.2.27.4.2(3) Revised correction procedures for Field 29ITI and deleted table.

(38) Exhibit 3.12.2-9 Revised reasonable cause criteria and changed Letter 53C to 854C.

(39) IRM 3.12.2.2.4(3) Added Form 6001-A correspondence action sheet

(40) IRM 3.12.2.24.3 Revised invalid conditions for Section 26 fields

(41) IRM 3.12.2.24.4.1 Added Field 26DDN and UA 83 instructions

(42) Exhibit 3.12.2-6 Added Unallowable Code 83

(43) Exhibit 3.12.2-7 Added Virgin Islands as credit reduction state for TY18

(44) IRM 3.12.2.3.5(2) Changed the shipping address from Covington campus to Kansas City campus and removed Note

(45) IRM 3.12.2.9.2.1 Clarified instructions for correcting Field 06RTN

(46) IRM 3.12.2-10 Corrected ZIP code ranges for District of Columbia, New Mexico, and Washington

Effect on Other Documents

IRM 3.12.2, Individual Master File Error Resolution General Instructions, dated December 4, 2018 (effective January 1, 2019) is superseded. The following IRM Procedural Updates (IPUs), issued between January 2019 through November 2019, have been incorporated into this IRM: 19U0015, 19U0359, 19U0574, 19U0822, 19U0835.

Audience

Individual Master File (IMF) Error Resolution Departments, Wage and Investment (W&I) Submission Processing Centers

Effective Date

(01-01-2020)

Linda J. Brown
Director, Submission Processing
Wage and Investment Division

Program Scope

  1. Purpose: Internal Revenue Manual (IRM) 3.12.2 provides instructions for correcting errors identified by the Error Resolution System (ERS) during processing of Individual Master File (IMF) tax returns.

  2. Audience: These procedures apply to the IRS employees who are responsible for correcting errors on tax returns in ERS including: Lead Tax Examining Technicians and Tax Examining Technicians

  3. Policy Owner: The Director of Submission Processing is responsible for the policies in this IRM.

  4. Program Owner: The Code & Edit/ERS Section of the Paper Processing Branch of Submission Processing is the program owner of this IRM.

  5. Primary Stakeholders: Submission Processing (SP) and Modernized E-file (MeF)

Authority

  1. IRC Sec. 6213(b) provides the authority for resolution of mathematical and clerical errors identified during processing of tax returns.

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

Responsibilities

  1. The SP Director is responsible for monitoring operational performance for the Submission Processing campuses.

  2. The Operations Manager is responsible for monitoring operational performance for their operation.

  3. The team manager/lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.

  4. The team employees are responsible for following the instructions contained in this IRM and maintaining updated IRM procedures.

Program Objectives and Review

  1. Program Goals: Correct all errors that are identified by the Error Resolution System (ERS).

  2. Program Reports: The Monitoring Section under Submission Processing Program Mgmt/Process Assurance monitors the ERS reports.

  3. Program Effectiveness: The program goals are measured by the following reviews:

    • Embedded Quality Submission Processing (EQSP) (individual quality review)

    • Computer Assisted Review of ERS (CARE) is an on-line review of Taxpayer Notice Codes (TPNC) assigned by the ERS Tax Examiner during processing

    • Balanced Measures

    • Managerial reviews

  4. Annual Review: This IRM is updated and reviewed annually to ensure accuracy and promote consistent tax administration. Review and concurrence is performed by affected offices according to the clearance process established in IRM 1.11.9, Internal Management Documents, Clearing and Approving Internal Management Documents (IMD), prior to publishing.

Related Resources

  1. The following websites, job aids, and tools needed to complete the work are listed in the table below:

    Resource Title
    IRM 3.11.3 - Contains coding and editing procedures for IMF tax returns Returns and Documents Analysis, Individual Income Tax Returns
    IRM 3.12.3 - Contains instructions for ERS Error Codes 001-750 and the No Reply and Taxpayer Notice Code exhibits Error Resolution, Individual Income Tax Returns
    IRM 3.12.37 - Contains general instructions for suspense records, document control, inventories and management reports. IMF General Instructions
    Job Aid Book 2515-014 Error Resolution System (ERS) for Individual Master File Documents for Prior Year Returns
    Job Aid Book 2515-015 Error Resolution System (ERS) for Individual Master File Documents for Current Year Returns
    Job Aid Book 2515-019 Error Resolution System (ERS) for Individual Master File Documents for ERS Managers
    Document 7071 Name Control Job Aid for Individual Master File (IMF) Taxpayers

Terms/Definitions/Acronyms

  1. The list of terms and/or abbreviations used throughout this IRM are located in Exhibit 3.12.2-14.

Introduction

  1. This IRM section provides instructions for Individual Master File (IMF) Error Resolution System (ERS) processing. The instructions in this manual are for correcting the following:

    1. Errors made by taxpayers and tax preparers

    2. Errors made by other IRS employees in the pipeline during return processing

  2. ERS will place error records into the Error Inventory.

  3. When the error record displays on the computer screen, the tax examiner will take one of the following actions:

    1. Correct the displayed section or field errors.

    2. Suspend the document for additional information or removal from pipeline processing.

  4. The instructions in this manual are for Form 1040, Form 1040-SR, Form 1040A and Form 1040EZ. Form 1040A and Form 1040EZ were made obsolete in Tax Year 2018 (TY18). All references to Form 1040A or Form 1040EZ should be used for TY17 and prior year returns only.

  5. Form 1040-SR is introduced for Tax Year 2019 (TY19). The fields and line numbers of Form 1040-SR are identical to TY19 Form 1040 with a larger font size and expanded form length. All instruction for Form 1040 apply equally to Form 1040-SR. Form 1040-SR will be processed with Document Code 05 or 06 in the document locator number.

  6. ERS section and error code screen displays for all returns have been realigned to follow the layout of TY19 Form 1040. Fields in Sections 01 through 05 are aligned as follows:

    1. Section 01 - Entity portion of TY19 Form 1040

    2. Section 02 - Form 3471 Edit Sheet

    3. Section 03 - TY19 Form 1040, page 1, line 1 through entire page 2, including paid preparer information.

    4. Section 04 - TY19 Form 1040, Schedule 1

    5. Section 05 - TY19 Form 1040, Schedule 2 and 3

    Note:

    Prior year Form 1040, Form 1040A, and Form 1040EZ will follow the same format with field designators realigned according to TY19 Form 1040 layout.

  7. A new Section 94 includes all the verified fields that are applicable to fields in Sections 01 through 05.

  8. Throughout this manual, forms will be referred to by numbers and schedules will be referred to by letters and numbers.

  9. The following introductory information is contained in this subsection of the manual:

    • General Guidelines

    • Organization of Text

General Guidelines

  1. Instructions in this manual are for a typical return. Apply the instructions as far as possible when a unique situation exists. Refer any unusual situations and complex cases to the lead tax examiner.

  2. Lines in this manual marked with # are for official use only and must not be disclosed.

  3. This manual is the main source of information for correcting the error record on the computer screen and the related return. Refer to Related Resources, IRM 3.12.2.1.4

    1. Note:

      Use the instructions in other IRMs only when specifically instructed in this IRM to do so.

  4. When a conflict between any reference, job aid, or training material and this manual occurs, the manual instructions take precedence.

  5. Deviations from procedures in this IRM may be granted only in accordance with the policy set forth in IRM 1.11.2.2.4.

Organization of Text

  1. This manual is organized so that correction procedures can be located quickly. All related procedures are contained in a single location, whenever possible.

  2. The text is organized as follows:

    • General Information

    • Special Procedures

    • Field Errors (Priority III)

    • Exhibits

General Information

  1. The general information contained in this subsection of the manual are:

    • Background

    • Perfecting the Tax Return and Field Error Screen Display

    • Command Codes

    • ERS Action Codes

    • Revalidating with OLE

    • Taxpayer Notice Code (TPNC)

    • Computer Assisted Review of Error Resolution System (CARE)

    • Computer Assisted Pipeline Review (CAPR)

    • Correspondence Procedures

    • Types of Errors

Background

  1. Records will be placed into the Error Inventory or the Workable Suspense Inventory for correction.

  2. You must do one of the following when the error record displays on the screen:

    1. Correct the displayed Field Error or displayed invalid conditions.

    2. Suspend document for additional information.

    3. Reject document from pipeline processing.

  3. ERS screen display corrections may also include correcting errors in editing and transcription on the return.

Perfecting the Tax Return and Error Screen Display

  1. The following information will be shown in the header portion of each error record on the Error Screen Display:

    • Document locator number (DLN)

    • Social security number (SSN) or IRS individual taxpayer identification number (ITIN)

    • Name control or check digits, if present

    • Previously assigned taxpayer notice code(s)

Document Locator Number
  1. The document locator number (DLN) is a unique number assigned to every return processed by the Automatic Data Processing (ADP) Systems.

  2. The DLN is used to control, identify and locate a document.

  3. Always make certain that the DLN on the Error Screen matches the DLN of the document before making any corrections to the screen display. See IRM 3.12.2.2.2.1.3.

Julian Date
  1. A Julian date is the numeric day of the year. For example, April 15, 2020, is Julian Date 106, the 106th day of 2020.

  2. The sixth, seventh and eighth digits of a DLN make up the Julian date.

Sequence Number
  1. The twelfth and thirteenth digits of the DLN are the sequence number.

    1. Returns in a block are numbered from "00" to "99" .

    2. The maximum number of returns in a numbered block is 100.

    3. Numbered returns in a block must stay in sequence number order.

Mixed Data on Paper Returns
  1. Before making any corrections to the error screen display, make certain that the DLN on the screen display matches the DLN on the Document.

  2. Mixed data situations exist when either of the following are present:

    1. Information from two different tax returns display on the error record under one DLN.

    2. The information on the return for the DLN does not match the return on the screen display.

  3. Take the following actions on mixed data:

    1. Stop processing block of work.

    2. Give the entire block of work to your manager.

      Note:

      Management will decide if the mixed data situation can be corrected via the terminal, or if the individual returns must be deleted and re-input.

Corrections
  1. Correct coding and transcription errors and misplaced entries on displayed fields to ensure taxpayer's entries are on the appropriate lines of the tax return.

  2. Refer to all instructions for each field error.

Internal Use Forms
  1. Form 3471, Edit Sheet - This form is used to edit unallowable conditions. Generally edited by Code and Edit or Examination.

  2. Form 4227, Intra-SC Reject/Routing - This form is used when special conditions require additional research, referral and/or action before document can be processed.

  3. Form 6001, Letter 12C Correspondence Action Sheet and Form 6001-A, Letter 12C Correspondence Action Sheet for PY. These forms are used to generate a Letter 12C to the taxpayer asking for additional information needed to continue processing their tax return.

Working Trails
  1. A working trail is a written and legible statement placed on a document as a record of action taken. They are used when information may be needed for other campus functions to accurately process tax returns.

  2. Working trails can contain the following:

    • SSN

    • Information about detached documents (e.g., detached Form 1040X, etc.)

  3. A working trail must also be written on any detached document. The following information, if present, must be indicated in the working trail of the detached document:

    1. Current date if the return was timely received

    2. The received date of the return if not timely received

    3. Tax period of return in YYYYMM format

Attachments to Returns
  1. You must take the appropriate action as defined in the Exhibit 3.12.2-11, Attachment Guide, when you are led to and find a taxpayer correspondence or attachment to a return.

    Note:

    You are not required to search for attachments or correspondence unless specifically instructed to do so in the section or error code; however, you should be conscientious in taking the appropriate action on any attachments or correspondence found. Particular attention must be paid to remittances in the form of checks, money orders, etc. If a check or money order is found, immediately inform your manager or lead.

Signature Requirements
  1. An original signature made by the taxpayer is required below the jurat (perjury) statement and within the "Sign here" box. Without the taxpayer's signature, the return is not an official document and may not be processed. ERS examiners are required to inspect returns for missing original signatures. Accept a taxpayer’s signature elsewhere on the return if the taxpayer has arrowed their signature to the appropriate area. If a return is unsigned, SSPND 640 to send the return to Rejects.

    Exception:

    Before suspending return, refer to exceptions in (4), (5), and (8) for reasons original signature is not required.

  2. Faxed or scanned signatures are valid signatures and are acceptable only when they are:

    1. Signatures received on EEFax. for Reject replies.

    2. Received from Taxpayer Advocate Service (TAS) or an IRS area-such as Substitute for Return (SFR) returns or returns marked "59XXX" (excluding "59918") received from the Collections Branch, or Correspondence Imaging System (CIS) returns from Accounts Management.

    3. Returns stamped by IVO (Handwritten IVO or IVO reviewed) and/or edited with SPC B or M.

    4. Copies with the remark Process as Original (PAO).

    5. Electronic return prints with an IRSN processed as an original, even when no copy of Form 8453 is attached, or the electronically filed return was signed with a PIN.

  3. If you cannot determine whether the signature is original, SSPND 211 to correspond for an original signature.

  4. Joint returns require the original signature of both taxpayers except when a notation indicates the spouse is:

    1. Deceased and the taxpayer is filing as the surviving spouse

    2. "POW" (prisoner of war) or "MIA" (missing in action)

    3. Unable to sign the return due to health reasons

    4. In a combat zone or qualified hazardous duty area

    5. Any of the following conditions is noted and a POA is attached: overseas (including military), incapacitated by disease or injury, or received advance permission from IRS.

  5. One original signature is acceptable on a joint return when a power of attorney (POA, Form 2848) is attached and the POA is valid for both taxpayers.

  6. If a guardian, personal representative, executor, trustee, or fiduciary files the return, it must have an original signature. Supporting documentation that the appointee has the legal right to file on behalf of the taxpayer may also be required. See IRM 3.12.2.3.19, Deceased Taxpayer.

  7. If the taxpayer is a minor child and the tax return is:

    1. Signed by a parent, it never requires documentary evidence such as birth certificate, but the parent must sign as "Parent for Minor Child" .

      Note:

      The notation must clearly identify the relationship to the minor.

    2. Signed by a guardian or other fiduciary designee, it requires documentary evidence ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See IRM 3.11.3.11.1, Documentary Evidence Requirements.

  8. Do not suspend for a missing original signature in the situations described below:

    1. "Substitute for Return Prepared by IRS" is noted, a signed Form 1040X is attached for the same period with an original signature, "See 1040X" is noted, or "dummy" return.

    2. "Section 6020(b)" or "prompt assessment" is noted or Form 4810, Request for Prompt Assessment Under IR Code Section 6501(d), is attached.

    3. Form 8879, IRS e-file Signature Authorization, is attached with a valid signature, and there is any indication that an electronic filing was rejected or the return is for a prior year.

    4. The return comes from Exam, Collection or Accounts Management and "Process as Original" (PAO) is present on the return.

    5. An employee's Integrated Data Retrieval System (IDRS) number is present on the signature line.

    6. Taxpayer has signed an attached CP 59 or Letter 143C on the "Sign Here" line. CSCO will note in the "Sign Here" area whether the taxpayer has signed under the jurat of the CP 59 or Letter 143C.

    7. Automated Substitute for Return (ASFR) is written or stamped in the top margin, a pink Form 3531 is attached, or Letter 2566 (SC/CG) or Letter 3219 (SC/CG) is attached. See IRM 3.12.2.3.2.

    8. There is an indication of TRPRT (transcript of a return).

    9. Computer Condition Code (CCC) "3" is already present.

    10. The return is from the Correspondence Imaging System (CIS).

    11. Paper-printed MeF returns that are sent from TAS.

    12. Efile Graphic Print (includes when the notation is circled out or lined through.)

Fields Not Visible in Error Code
  1. Due to the complexity of calculating income, taxes, and credits, the number of required fields can surpass the capacity of the ERS screen. The ERS screens have the following capacity:

    1. Section screens have 3 columns and 18 rows for a total of 54 fields.

      Exception:

      Section 01 has 2 columns and 18 rows for a total of 36 fields.

    2. Error code screens have 3 columns and 19 rows for a total of 57 fields.

  2. The number of fields displayed for an error code cannot exceed 57 fields. Instructions have been added to use command code GTSEC to make corrections to a field that does not display on the error code screen that is necessary for the resolution of the error code.

Missing Schedules
  1. If Code and Edit did not prepare a dummy schedule from the attachments, you are not required to prepare a Dummy schedule/form when missing from a paper return.

  2. GTSEC XX to call up the section, and enter all appropriate fields.

Money Fields
  1. Refer to each section for specific information on fields transcribed as dollars only or dollars and cents.

    Note:

    Integrated Submission and Remittance Processing (ISRP) transcribes all of Form 1040EZ in dollars and cents.

  2. Some of the fields transcribed in dollars only will display in ERS in dollars and cents, with two zeros to the right of the decimal point.

  3. Any correction to a field with ** must be entered in dollars only. Any correction to a money amount field without ** must be entered in dollars and cents.

  4. MeF returns are dollars only.

Clear Code C and 000
  1. A field labeled CL will be displayed for the entry of a Clear Code when there is a possibility that a change or correction may not be needed. This field is located on line 4 of the screen display, to the right of CRECT. These records are cleared by either of the following actions:

    1. Correcting the error condition and transmitting.

    2. Enter C in the Clear Field, when no correction is needed.

    Note:

    If a correction is made, you must transmit before entering the clear code C.

  2. Unfinished records from the previous day will not contain any of the C Clear Codes that were assigned to the record. All Clear Codes on unfinished records are removed by the system for the new day's inventory. Programming will erase all C Clear Codes when a record has been suspended with the CC SSPND.

  3. Use the numeric 000 as a Clear Code to delete invalid or erroneous Action Codes when there is no reason to suspend the record.

  4. Clear Action Codes 410 and 700 before resolving other errors in a record. All other Action Codes, enter C in the Clear Field after corrections for the Action Code have been completed.

Entity Information
  1. Input entity changes when any acceptable written notification, as defined in the following, is received from the taxpayer and you are led to the Entity area:

    1. Written notification signed by the taxpayer informing the Service he/she wants their address changed.

    2. Form 8822, Change of Address, is attached to the return. Enter as intermediate or long entity.

  2. When IRS correspondence is returned by the taxpayer with new address information, input changes according to the information received. No signature is required.

Miscellaneous Payments
  1. When taxpayers attach a state income tax return with their federal return, detach and route the state income tax return to the Receipt and Control Branch. Receipt and Control will route the return to the appropriate state taxing agency. If the state income tax return is not attached, but the taxpayer is attempting to pay state income tax on the federal return, assign Taxpayer Notice Code 298.

  2. A Presidential Task Force has determined that taxpayers can make a contribution to reduce the public debt. Certain tax packages contain a message from the Commissioner telling taxpayers that they may send a separate check made out to the Bureau of Public Debt with their tax returns. If a check made out to the Bureau of Public Debt is found attached to the return, route to Receipt and Control.

Command Codes

  1. Use the appropriate Command Codes (CC) when correcting the Error Inventory and the Workable Suspense Inventory or when additional research is necessary. The ERS and IDRS Command Codes are as follows:

    ERS COMMAND CODE DESCRIPTION
    CRECT Used to enter a correction.
    DLSEC Used to delete a section from the data record.
    ERINV Used to research a DLN or TIN on the ERS Control File.
    GTREC Used to access the first error in a block in the Error Inventory or a specific record in the Workable Suspense Inventory. It can also be used to redisplay any uncorrected error.
    GTSEC Used to obtain the display of any section of a record in process.
    NWDLN Used to change (renumber) the DLN and MFT of the record and reject the record.
    QRSEL Used to select tax records to stay on ERS Database one additional day to allow for Quality Review or rework. Definer E is used to select MeF returns. Definer R is used to select returns for CARE REVIEW.
    RJECT Used to reject a record from ERS.
    SSPND Used to enter an Action Code and place a record in suspense.
    TRDBV Used to obtain the display of edited, transcribed, and corrected data from electronic returns and Telefile returns for tax year 1998 and later.
    TRERS Used to display return in Rejects only when return was an unpostable.
    IDRS COMMAND CODE DESCRIPTION
    ENMOD Used to request the entity module for a specific Taxpayer Identification Number.
    ENREQ Used to input entity changes for all master files.
    ENREQR Used to input CC IRCHG.
    IMFOL Will display entity and tax module information on-line for query access.
    INCHG Response to CC ENREQ for IMF and IRAF accounts. This is a generated command code with a screen format.
    INOLE Used to access the most current entity data from the national (NAP) files.
    IRPOL Research Form 1095-A, Form 1095-B, and Form 1095-C.
    IRCHG Response to CC ENREQR. Used to add a name control to the valid name controls for a given TIN (make an account IRS valid). Initiates an account merge of the valid and invalid TINs for a given account.
    IRPTR Contains entity data, cross reference information, DOD/DOB, and income summary information. CC IRPTR is available for researching information (before or after correspondence), to determine items such as gross social security benefits, withholding, social security tax withheld, and Medicare tax withheld. IRPTR is updated monthly. On-line research is available for ten years. IRPTR data will be available as information is processed and is continually updated, per IRM 2.3.35.
    NAMEB Name and address data is entered to research a missing EIN.
    NAMEE Name and address data is entered to research a missing EIN.
    NAMEI Name and address data is entered to research a missing SSN.
    NAMES Name and address data is entered to research a missing SSN.
    RTVUE Contains edited, transcribed, and corrected data from data entry lines of returns and related forms and schedules filed in the current processing year (including two prior tax years).
    TXMOD Used to research a specific tax period for a specific type of tax.

    Note:

    Additional information is contained in IRM 3.12.37, IMF General Instructions; IRM 2.3, IDRS Terminal Responses; IRM 2.4, IDRS Terminal Input, and Job Aid Book 2515-015.

  2. When IDRS is unavailable, SSPND 351.

Error Resolution System (ERS) Action Code

  1. ERS Action Code indicates that specific information is missing, or the document must be suspended or removed from processing. ERS Action Codes will have sufficient detail to indicate if correspondence, in-house research, or other action(s) are required. See Exhibit 3.12.2-1 for explanations of the Action Codes.

  2. Code and Edit tax examiners assign Action Codes to numbered returns that are unprocessable, require research, correspondence, etc. The code is entered on the lower center margin of the return.

  3. Correspondence Action Sheets (Form 6001/Form 6001-A) are attached by Code and Edit for initiating correspondence.

  4. Action Codes will generally be sufficient with no further explanations, when routing within the campus for in-house research.

  5. The Action Code assigned by Code and Edit is transcribed and kept as part of the Form 1040 record. It will always display as a Priority 1 Error.

  6. Correction Procedures - Use CC SSPND, RJECT, or NWDLN to enter an Action Code on the record, correct an invalid code, resuspend, or delete a record from ERS. If the Action Code assigned by Code and Edit or transcribed by ISRP is invalid or incomplete, use 000 as a Clear Code to delete invalid or erroneous Action Codes when there is no reason to suspend the record.

    Note:

    Only one Action Code can be assigned at one time to a record from ERS

    .

  7. Enter a valid Action Code with CC SSPND to clear the record from the screen and place it in either Workable or Unworkable Suspense.

  8. Enter CC RJECT to delete the ERS record from ERS Inventory and the Service Center Control File (SCCF). Only Action Codes 620, 630, 640, 651, 660 and 670 are valid with CC RJECT.

  9. Enter an Action Code with CC NWDLN to delete the record from ERS and the SCCF and establish a new DLN for input.

Revalidating With OLE

  1. ERS allows for the on-line revalidation of the TIN and name control using the Online Entity System (OLE). Corrections made in ERS to TIN and Name Control will revalidate by accessing the National Account Profile (NAP). The Error Codes where this occurs for primary taxpayers are as follows:

    • Error Code 003

    • Error Code 004

    • Error Code 005

    • Error Code 006

    • Error Code 007

    • Error Code 008

    • Error Code 009

    • Error Code 011

  2. The Error Codes where NAP revalidation takes place for Secondary SSN, dependents and Earned Income Credit (EIC) children are:

    • Error Code 010

    • Error Code 011

    • Error Code 012

    • Error Code 013

  3. The Error Codes where NAP revalidation takes place for Schedule H information (employer identification numbers (EINs) only) are:

    • Error Code 164

    • Error Code 170

    • Error Code 172

  4. Various Error Codes will provide instructions to move your cursor to the bottom of the screen and transmit. This will send the record back out for revalidation by the NAP.

Taxpayer Notice Code (TPNC)

  1. Taxpayer Notice Codes (TPNC) are used when a math error is present involving the tax liability or refund/amount owed. TPNCs are entered on the ERS screen display following the literal NC.

  2. The TPNC entered will print on the notice sent to the taxpayer to explain the change(s) made to the return.

  3. Once a code is transmitted to the record, it cannot be changed unless a correction causes an Error Code with a higher priority or a correction erases an Error Code previously cleared with a TPNC. See IRM 3.12.2.2.10.4(4) and (5).

  4. A TPNC assigned on an Error Code will redisplay on subsequent displays of that record.

  5. Multiple TPNCs may be entered when multiple error conditions are shown. IMF ERS can generate a maximum of five TPNCs; the fifth must be TPNC 100, unless the fifth is the last TPNC you assign. See paragraph 10 below.

  6. When working a converted return and a TPNC is required to resolve the error, assign TPNC 111 as the first notice code to inform the taxpayer the return has been converted to a Form 1040.

  7. TPNCs assigned must be valid for that Error Code. If an invalid TPNC is entered, the same math Error Code will redisplay.

  8. Enter TPNCs only after you have determined no other corrections to the screen display are needed. If you need to change information on the screen and assign a TPNC, first correct the appropriate field(s) and transmit. When the Error Code redisplays, assign the TPNC(s).

  9. An error may ripple through a return, changing the taxpayer's figures that were originally correct. These ripple errors, especially changes in AGI and taxable income, can cause error codes to display that would not otherwise have generated. If an error code is the direct result of a ripple error, assign any previously assigned TPNC.

    Caution:

    It is important that the taxpayer be advised of all errors that are present on the return. Use caution when entering any previously assigned TPNC.

  10. Use TPNC 100 and take the appropriate action when the following apply:

    If using TPNC 100... Then...
    A] As the fifth TPNC,
    1. Indicate that there are more than five TPNCs.

    2. Write all applicable TPNCs (including 100) on Form 12126 (or equivalent).

    3. Attach the form to the front of the return, below the entity.

    Note:

    Notice Review must retype the notice to include all applicable TPNCs to inform the taxpayer of all errors on the return.

    B] When no existing TPNC fits the error situation, follow the IRM instructions for the specific error code,
    1. Complete Form 12126 (or equivalent) with the approved IRM text for TPNC 100 and any additional TPNCs that were assigned.

    2. If a TPNC 100 is required when the TPNCs (including 100s) in the error code do not address the issue, Management’s review and signed approval is required.

    3. Attach the form to the front of the return, below the entity.

    4. Follow local procedures (i.e., leave return in the block or charge out the return and route directly to Notice Review).

    C] On electronic returns,
    1. GTSEC 01 and print the entity screen display.

    2. Complete Form 12126 (or equivalent) with the approved IRM text for TPNC 100 and any additional TPNCs that were assigned and attach it to the Section 01 screen print.

    3. Place the Section 01 screen print in a designated area for electronic returns with TPNCs 100.

    Note:

    When assisting a primary center with electronic ERS inventory, all Section 01 prints with TPNCs 100 must be faxed daily to the primary center.

    Note:

    The list of allowable TPNCs shown at the end of each math Error Code displays only a short description of the actual literal, with the exception of TPNC 100. See Exhibit 3.12.3-2 for a complete list of TPNCs with the actual literals.

  11. SSPND 640 to return to originator and indicate on Form 4227 the error condition and the TPNC that would be assigned when any of the following exist:

    1. Substitute for Return Prepared by IRS under authority of Section 6020(b).

    2. An assessment made from Form 2859, Request for Quick or Prompt Assessment.

    3. The return is an Examination adjustment case, identified as Secured by Examination.

    4. Form 3198, Special Handling Notice for Examination Case Processing, is attached.

    Note:

    If the originator has indicated that a TPNC can be sent, you may assign one.

Computer Assisted Review of Error Resolution System (CARE)

  1. Computer Assisted Review of Error Resolution System (CARE) is the on-line quality review of Taxpayer Notice Codes (TPNC) initiated by the Error Resolution System (ERS).

    1. CARE is used to identify incorrect or erroneous TPNCs in the review process.

    2. TPNCs corrected by CARE prevent delays in refunds or balance due notices issued, thus preventing erroneous Computer Paragraph (CP) notices from being generated to the taxpayer

  2. CARE requires no manual record keeping and is truly a Computer Assisted Review. All statistical data regarding TPNCs and tax examiner accuracy is gathered by computer programs and then downloaded to a database for analysis.

  3. Command Code QRSEL is used to select documents to stay in the ERS Database one additional day to allow for TPNC review and correction. The selection can be made using the following criteria:

    • All of a Tax Examiner's Work

    • All Taxpayer Notice Codes

    • Money Amount

    • Batch and Block Number

  4. Documents are reviewed and reworked using instructions for specific error conditions found in the appropriate ERS IRMs.

    • IMF- IRM 3.12.2, Individual Master File Error Resolution General Instructions, IRM 3.12.3, Error Resolution, Individual Income Tax Returns, and IRM 3.12.37, IMF General Instructions

    • BMF - Refer to applicable ERS IRM

  5. Corrected work is then released as usual to subsequent functions. With the CARE process, corrected TPNCs posted to the Master File match the notice received by the taxpayer.

CARE Reports
  1. The High Dollar Notice Listing reports (LC76440-BMF and LC76441-IMF), can be found on Control D and contains the data used to generate the daily review sheets. This report is imported into CARE Reports Access Database program. Using the Reports menu, the following types of review sheets can be generated:

    1. Julian Date

    2. Notice Report

    3. Dollar Reports

    4. Employee Report

    5. Cart Report

    6. Custom Select Report

  2. The LC76301 report can be found on Control D and contains data showing the before CARE and after CARE status of each return. This report is input into the CARE Access Database to generate accuracy reports for each return. The following accuracy reports can be generated:

    1. Section Accuracy Rates

    2. Individual Tax Examiner Report Summary

    3. Team Report Summary

    4. TPNC Review Report Summary

    5. TPNC Review accuracy by Team

    6. Notice Code Review Totals

    7. Notice Code Review by Team

    8. Notice Code Review by Program

    9. Quality Review Report

  3. The Utility Window is used to specify review begin and end dates. This will allow weekly, monthly, or yearly accuracy reports to be generated.

    1. Local reports should be generated and distributed as requested by local management officials.

    2. HQ reports should be generated and distributed as requested by HQ CARE Analyst.

Generating CARE Review/Pull Listing
  1. Each morning, the applicable Control D reports (LC76440-BMF and LC76441-IMF) should be loaded into the CARE Access database. See IRM 3.12.2.2.7.1(1). The daily review/pull listings are then generated and printed.

  2. Using these listings, the returns are then located and made available to the CARE reviewers.

CARE Review Procedures
  1. In order to prepare the return for review, all previously assigned TPNCs must be removed. Take the following steps in the order shown:

    1. Enter the complete DLN (including the serial number of the return) from the review sheet using Command Code GTRECQ, transmit.

    2. Enter GTSEC 01, transmit.

    3. Enter G in Field 01CCC.

    4. Delete G from Field 01CCC when EC 048 displays.

  2. The steps in (1) only removes the TPNCs assigned on the record. It won’t take you back to the first error displayed on the return if verified fields or processing codes were entered. GTSEC 94 and check for entries in ERS verified fields, such as Field 94EXV, 94CEV. Get each applicable section and check for entries in ERS only input fields, such as Field 0717V or Field 17SEV. GTSEC 01 and check for processing codes, such as RPC O or CCC X. If found, delete the entries.

  3. The return should now be ready to be reworked.

  4. Refer to the following IRMs for ERS correction procedures:

    IMF IRM TITLE
    3.12.3 Error Resolution, Individual Income Tax Returns
    3.12.37 IMF General Instructions
    3.22.3 International Error Resolution, Individual Income Tax Returns

Computer Assisted Pipeline Review (CAPR)

  1. For 2002 and later, ERS Tax Examiners are not required to enter a CAPR Code.

  2. If an entry is made in the first position after the field designator, a CAPR error message will display with the Valid CAPR Codes (M, C, T, E, D, S, and Blank).

Correspondence Procedures

  1. Do not correspond on returns TY09 and prior. Use No Reply procedures for missing information on TY09 and prior returns.

    Exception:

    Correspond for missing signature regardless of tax year.

  2. ERS examiners are required to inspect returns for missing original signatures. Without the taxpayer's signature the tax return is not an official document and may not be processed. See IRM 3.12.2.2.2.2.4.

    1. If a return is unsigned, SSPND 640 to send the return to Rejects.

    2. If the present signature cannot be determined to be an original, correspond for the original signature.

  3. Correspondence is necessary when a return is incomplete or illegible and cannot be processed for that reason.

  4. Correspond for all missing information prior to referring the return to other IRS entities (e.g., Exam, IVO, Entity, etc.) or converting to Form 1040.

  5. Stop processing the return when you have identified a need to correspond and take the appropriate action(s) as follows:

    1. Scan the tax return for further reasons for correspondence: missing forms, unexplained tax liability, missing original signature, missing information about dependents or EIC children such as name, relationship, or TIN. Do not correspond for only the TINs of dependents or EIC children.

      Note:

      Tolerances and thresholds apply to some forms and affect correspondence. See the following exceptions when corresponding for:
      • Missing original signatures. See IRM 3.12.2.2.2.2.4.
      • Form 1116. Refer to EC 277.
      • Form 2106 (TY17 and prior). Refer to EC 244.
      • Form 8283. Refer to EC 240.
      • Schedule 8812. Refer to EC 340.
      • Schedule EIC. Refer to EC 337.
      • Withholding is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ not supported by IRPTR research and no supporting documents (e.g., Forms W-2 or Form 1099) correspond for support.

      Caution:

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

    2. Check the return for Form 2848, Power of Attorney and Declaration of Representative, or similar statement to ensure the correspondence is correctly addressed.

    3. When a return is for a minor taxpayer and the parent's name is known, ensure the parent's name is in Field 01NL2. Look for the parent's name on Form 8615 or the signature line of the return.

    4. When you correspond for Schedule C or F ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and no Schedule SE is present, also request that the taxpayer declare liability or non-liability for the self-employment tax.

      Caution:

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

  6. A correspondence action sheet (CAS) is a form used to initiate a letter requesting information from a taxpayer. The following CAS forms are used:

    1. Form 6001 is used to generate Letter 12C, Individual Return Incomplete for Processing: Form 1040, Form 1040A and 1040EZ.

    2. Form 6001-A is used to generate Letter 12C for Prior Year returns.

    3. Form 3696-A is used to generate miscellaneous Correspondex (C) letters (e.g., Letter 2719C used for non-pending returns).

  7. Prepare Form 6001 to initiate Letter 12C using the following steps:

    1. If taxpayer is single and there is an indication the taxpayer is deceased, check the box “Estate of” at the top of the form.

    2. Write legibly.

    3. Check all appropriate boxes.

    4. Complete all information required for each paragraph selected (e.g., forms, lines, amounts, etc.).

    5. Enter money amounts in dollars and cents. Bracket negative amounts.

    6. Use Exhibit 3.12.2-8, Letter 12C Fill-in Paragraphs, when paragraph h is selected.

      Note:

      Refer all other fill-in paragraphs to your manager/lead for his/her text approval and initials next to paragraph h.

    7. When paragraphs J - O are not enough to request all missing forms and schedules, use paragraph h with fill-in paragraph "48" instead.

    8. Always select the applicable fax number paragraph (k - n) specific to your campus.

      Note:

      No entry is required in the fill-in fields of the fax number paragraph (k - n).

  8. Attach the CAS to Form 1040, Form 1040A, or Form 1040EZ below the caption area. For MeF, print Section 01 and attach below the entity data.

    Caution:

    When stapling the correspondence sheet to the return, ensure you are attaching only one return.

  9. Enter CC SSPND with the applicable action code below:

    • 211 - first correspondence. Use 211 unless specified below.

    • 212 - second correspondence, when directed. See IRM 3.12.2.2.9.1.

    • 213 - Form 8885 (HCTC) (EC 348)

    • 224 - ACA correspondence (EC 068, 100, 101, 190,191,192, 193, 194, 195, 196, 197, 198, 199, 270, and 344). If there are multiple reasons for corresponding and one is for ACA, use 224.

    • 225 - Shared Responsibility Payment (SRP) (EC 157)

  10. Enter SSPND 640 to send the return to the originator if any of the following is present, or return is incomplete or unprocessable:

    Note:

    Do not correspond.

    1. Substitute for Return Prepared by IRS under the authority of Section 6020(b).

    2. An assessment made from Form 2859, Request for Quick or Prompt Assessment.

    3. An Examination Adjustment case identified as "Secured by Examination" .

    4. Form 3198 is attached.

Second Correspondence
  1. When contact with the taxpayer has previously been made by any area of Submission Processing, including Form 3531 (greenies), treat missing information on a return as a No Reply, except in the situations in the following list. Correspond a second time when any of the following exceptions apply, if it had not been requested during first correspondence, and the taxpayer provided a complete reply:

    1. Error Code 268, Alternative Minimum Tax Liability

    2. Error Code 348, Health Coverage Tax Credit (HCTC)

    3. Form 4137 when you can’t determine which taxpayer is liable.

    4. Form 5329 when you can’t determine which taxpayer is liable.

    5. Form 8606 when you can’t determine which taxpayer is liable.

    6. Form 8919 when you can’t determine which taxpayer is liable.

    7. Schedule H when you can’t determine which taxpayer is liable.

    8. Schedule SE when you can’t determine which taxpayer is liable.

    9. If EC 028, EC 029, or EC 038 displays after Code & Edit has corresponded or ERS has corresponded for "field errors only" .

  2. When second correspondence is issued based on the exceptions in (1) a) through i), enter SSPND 212 and prepare the applicable Form 3696-A for LTR 1263C.

    Note:

    Refer to the Forms 3696-A located under Job Aids in the SERP ERS/Rejects portal.

  3. If ACA Error Code 068, 100, 101, 157 (SRP), 190, 191, 192, 193, 194, 195, 196, 197, 198, 199, 270, or 344 displays after first correspondence and the taxpayer has provided a complete reply, issue second correspondence. SSPND 212 and follow the procedures under the error code for the appropriate paragraph(s) to send using Form 6001. Also, include paragraph h with fill-in 33.

    Exception:

    If correspondence has been issued for ACA EC 190 through 199, EC 270, or EC 344, and another ACA error code displays for the return requesting additional information, do not correspond. Follow No Reply procedures.

  4. Do not correspond a second time if the information was previously requested and the taxpayer did not furnish the information or furnished an incomplete response. Treat the return as a No Reply using the procedures in Exhibit 3.12.3-1.

Types of Errors

  1. The ERS system will identify errors according to type and priority as follows:

    • Action Code Error (Priority I)

    • Section Error (Priority II) - Includes terminus error and Integrated System Remittance Processing (ISRP) problem code

    • Validity Error (Priority III) - Includes field errors

    • Math/Consistency Error (Error Codes) (Priority IV), see IRM 3.12.3

Priority I Errors, Action Code
  1. Priority I Errors consist of the following:

    1. Invalid or valid Action Code assigned by Code and Edit.

    2. Valid Action Code assigned to Suspense Inventory.

  2. Use the following error correction for Action Codes:

    If the... Then...
    A] Action Code requires a Suspense Action,
    1. SSPND with correct Action Code.

    2. Go to the bottom of the screen and transmit.

    B] Action Code does not require a Suspense Action,
    1. Enter numeric 000 in the Clear Field (CL).

    2. Go to the bottom of the screen and transmit.

    C] Action Code is 001,
    1. Enter CC GTSEC for each section that contains data.

    2. Add the required data.

    3. Enter C in the Clear Field.

    4. Go to the bottom of the screen and transmit.


    (record will go through normal validity checks).

    Note:

    Do not remove the document from the block unless the case is a Priority Statute or manual refund case.

Priority II Errors, Section Errors
  1. Priority II Errors may be present if normal ISRP validity checks have been bypassed. These conditions are as follows:

    1. Split screen transmission (Edit Error Code 1). Key Verifier attempted to change the Check Digit, Key Verifier changed four or more digits of the Primary TIN, or the Original Entry Operator indicated that a required section was missing, or the Depositor Account Number (DAN) in Section 06 (that is input twice) was not entered the same both times. The second entry of the DAN is dropped by ISRP. ERS must determine if the entries in Section 06, especially Field 06DAN, have been transcribed correctly.

    2. Invalid section ending point (Edit Error Code 3).

    3. Invalid field length (Edit Error Code 4).

    4. Questionable Section (a section entered twice or entered out of sequence by ISRP) (Edit Error Code 5).

    5. Missing required section.

    6. Terminus errors (no error in record).

  2. The display will only show one section (error) at a time for the transcribed fields (except ERS Action Code and Remittance). Display will be in columnar format with or without data. The error type will also be indicated for ISRP Problem Code errors.

  3. The content will have any individual section, excluding computer generated fields and the Action Code. The Action Code is an uncorrectable field except as defined for CC SSPND and RJECT.

  4. Use the following general guidelines when correcting a Priority II Error:

    1. ISRP Errors - All fields of the section must be examined when this condition exists. If Section 01 of a return is coded, examine the section (via CC GTSEC) for an error to ensure that the return is for the taxpayer whose name is in Section 01. Correct the section. Once the section is correct, transmit from the bottom of the screen.

    2. Missing Section Errors - If data is present for the missing section, enter all the data for the section and transmit. If no data is present for the missing section, refer to specific IRM procedures for initiating research (see IRM 3.12.2.2.3) or correspondence (see IRM 3.12.2.2.9). After initiating research or correspondence, SSPND the record with the appropriate Action Code.

    3. Terminus Errors - All fields of the section must be examined when this condition exists. Make the necessary corrections to the record. Once the section is correct, transmit from the bottom of the screen.

    4. Questionable Section - Verify and enter all the data for the displayed sections. When all of the data is correct, transmit from the bottom of the screen.

  5. Correct all displayed fields before transmitting.

  6. Go to the bottom of the screen and transmit when no corrections are necessary.

Priority III Errors, Validity Errors, including Field Errors
  1. Priority III Errors generate when any field fails to meet the requirement(s) for that specific field. The following is a list of some conditions that may create a field error:

    1. Non-numeric character in a numeric field.

    2. Non-alphabetic character in an alpha field.

    3. Blank space in a number field.

    4. Blank in the first position of an alpha field.

  2. Priority III Errors will display in columnar format in the order encountered in the record. Overflow fields can be identified by all question marks (for money fields) or a single pound sign in the last position of a Name Line. Every field that displays is in error.

  3. Use the following general guidelines when correcting Priority III Errors:

    1. Correct coding and transcription errors.

    2. Enter the correct data for each field displayed.

    3. Blank the field when no data should be in a displayed field.

    4. Follow section instructions for fields in error.

      Note:

      When "Unrecognizable Field Error" displays, SSPND 630.

Priority IV Errors, Math and Consistency Errors (Error Codes)
  1. Priority IV Errors generate when any valid field is used in any computation in which the results are inconsistent with or contradictory to other valid field(s). EC 001-999 will be assigned by the Computer. If the result of the computer computation of an amount differs from the taxpayer's amount, the computation fields will be shown as a Priority IV Error. Error types will be one of the following:

    • Consistency Errors

    • Validity Errors

    • Math Errors

  2. The display will show the Error Code assigned and the fields needed to make the necessary correction(s).

  3. Resolve all errors by either eliminating the error, entering clear codes, or entering a TPNC.

    Note:

    All math Error Codes will require a correction to a field or the entry of a TPNC.

  4. When correction causes an Error Code with a higher priority than the previous Error Code to display, all Clear Codes and TPNCs already entered for lower priority Error Codes will be deleted. All lower priority Error Codes, still present in the record, will be re-displayed for resolution even when previously cleared with a TPNC or Clear Code.

  5. When a correction causes a cleared Error Code to no longer be in error; the TPNC or Clear Code for that Error Code will be deleted. All TPNCs and Clear Codes assigned to all lower priority (higher numeric) Error Code(s) will also be deleted. Any remaining Error Codes, previously cleared (deleted because of a correction), will re-display.

  6. Use the following general guidelines when correcting a Priority IV Error:

    1. Compare the displayed fields with the return.

    2. Correct all fields edited or transcribed incorrectly.

    3. Enter correct taxpayer amounts for ERS input only fields (e.g., Other Statutory Credits).

    4. Follow the instructions for the displayed Error Code when correcting fields in error.

Error Codes in Series 500 and 600, changes in statutory credits
  1. Error Codes in the 500 and 600 Series (except 601) provide the opportunity to inform the taxpayer(s) of adjustments made to their statutory credits when there is no change to his/her refund. This happens when the taxpayer has more statutory credits available than are needed to zero out the tax. These excess credits are not refundable but can be carried over to the following year. Sometimes the taxpayer will make a mathematical error on his/her return which makes it necessary to use more or less of the credits to offset the tax, but the error still results in no change to their anticipated refund. The taxpayer will be notified of the adjustment to the credit so they can have an accurate record of the carryover credits available to offset tax in the future year. The taxpayer is notified by means of the Letter 2719C. See the following example:

    Before Correction After ERS Correction
    1. Line 11a Tax Amount is $1,000.

    2. Investment Credit is $1,500.

    3. Credit is limited to $1,000.

    4. Credit taxpayer will carry forward is $500.

    1. Line 11a Tax Amount is $1,400.

    2. Investment Credit is $1,500.

    3. Credit is limited to $1,400.

    4. Credit taxpayer will carry forward is $100.

  2. Prepare Form 3696-A to initiate the Letter 2719C when the change to credits is $100 or more. Complete the following:

    1. Boxes 1 through 9 (as appropriate), on Form 3696-A.

    2. "Fill-ins" portion of Form 3696-A.

    3. "Fill-ins" 01 through 05 of Form Letter 2719C (these are required).

    Note:

    If preparing Form 3696-A for Form 3800 (TY97 and later), and line 3 (Passive Activity Credits Included) or line 5 (Passive Activity Credits Allowed) of Form 3800 is present; do not reference on Form 3696-A individual general business credit. Instead, reference any and all Form 3800 credits as "your general business credit" .

Special Procedures

  1. This subsection addresses the following special situations, return types and procedures:

    • Secured/Photocopied/Second Returns

    • Automated Substitute for Return (ASFR)

    • Frivolous Filer

    • Suspect Returns

    • Accounts Over 999 Million Dollars

    • Injured Spouse Allocation

    • Innocent Spouse Relief Request

    • International Returns

    • KITA - Killed in Terrorist Action

    • Military Spouse Residency Relief

    • Combat Zone Returns

    • Natural Disaster/Emergency Relief Program

    • Conversion of Returns

    • Misblocked Returns

    • Prior Year Returns

    • Re-Entry (Reinput) Returns

    • Taxpayer Advocate Service

    • Economic Stimulus Payment Returns

    • Electronic Returns

    • Deceased Taxpayer

    • Multiple Filers on the Same Return

    • Multiple Tax Periods on the Same Return

    • Tax Return for an ITIN Income and Withholding Statements for SSN

  2. Manual Refund - Any return hand carried by a W&I SP liaison for Taxpayer Advocate Service (TAS) as a manual refund should be processed by a lead tax examiner or designated tax examiner. (See IRM 3.12.3.24.4.3 EC 260.)

Secured/Photocopied/Second Returns

  1. Taxpayers sometimes file returns with Form 1040, Form 1040A, or Form 1040EZ to correct or change previous returns. Some taxpayers send copies of original returns with payments or correspondence.

  2. Process the return as an original if the phrase "No TC 150," "Secured by Collection," or "TC-599"-XX is anywhere on the return.

  3. Process a photocopied return as an original when "Process as Original" (PAO) has been edited on the return, indicating that Exam has the original, delinquent return.

  4. Process any return with the phrase PAO in the upper left corner of the return as an original return so that it may be posted as a duplicate.

Automated Substitute for Return (ASFR)

  1. Most Substitute For Returns (SFRs) have been automated and are now called ASFRs.

  2. Take the following action when an ASFR is received in ERS. ASFRs are usually Section 01 validity errors (e.g., a ZIP Code problem or an invalid character). You will not have the actual document:

    1. Research using CC INOLE.

    2. Re-enter the entity data into the field(s) in error.

Frivolous Filer

  1. SSPND 331 (Rejects AC 335) any return on which the taxpayer:

    1. Argues - for any reason - the filing of a tax return or the paying of tax.

    2. Makes use of a frivolous argument to reduce income or liability.

    3. Marks out or alters - in any manner - the penalty of perjury statement (jurat) above the signature.

  2. A Frivolous Return Process stamp in the upper left hand corner should be present if the return has already been reviewed by the Exam FRP Coordinator. Do not SSPND 331, continue processing.

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡Exhibit 3.12.2-13, Frivolous Filer Definitions, for additional examples and complete descriptions.

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Example:

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

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

Suspect Returns

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. The lists above are not exhaustive or final. Fraudulent returns frequently change. The filers adapt quickly to circumstances and adopt new practices. ERS examiners should refer suspect returns to IVO or FRP according to the kind of fraud when they believe they've come across a refund scheme not described here.

  5. If you suspect a return is fraudulent, refer to the following steps. Do not resuspend a return to the same office a second time. If a second referral is necessary, make sure it meets the criteria for referral to the second office.

    1. If the return is electronic, print Section 01 of the return.

    2. Suspend the return to:
      IVO with SSPND 336 (refund return only), or
      ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      • SSPND 331 for frivolous arguments listed in IRM 3.12.2.3.3, Frivolous Filer

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Accounts Over 999 Million Dollars

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. If a return meets any of the conditions in (1), void the return with RJECT 620 (For MeF, print all forms, schedules, attachments, and Code and Edit Values), and route it via overnight shipping to the following address:
    Kansas City Submission Processing Campus
    Accounting Control/Services Operation NMF Stop 6263 P6
    333 W. Pershing Rd.
    Kansas City, MO 64108

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  6. Consistency errors in the range 5XX and 6XX may display because of the truncated AGI. Keep the effect of the truncated AGI in mind when you follow the procedures at those error codes.

Injured Spouse Allocation

  1. An Injured Spouse allocation request can be filed by one spouse to protect his or her share of a joint overpayment. Injured Spouse returns can be identified by one of the following:

    1. "Injured Spouse" written on the return.

    2. Form 8379, Injured Spouse Claim Allocation attached.

    3. Batched in Blocking Series 920-929 (Form 1040/A/EZ/X).

  2. Use the following table to determine procedures for handling Injured Spouse claims:

    If the return... Then...
    A] Has Blocking Series 920-929,
    1. Continue processing.

    2. Leave Form 8379 or Form 1040X attached.

    B] Does not have Blocking Series 920-929 (found in regular block of work), SSPND 610 to have renumbered.

Innocent Spouse Relief Request, Form 8857

  1. Taxpayers file Form 8857 to request relief from a tax liability for which they believe only the spouse should be held responsible. Three types of relief from joint and several liability are available.

    1. Innocent Spouse Election. An election made by a person who filed a joint return or filed a return as "married filing separately" in a community property state and later said that the understatement of tax on the return stems from the erroneous reporting of an item that belongs to the spouse, of which the claimant had no knowledge or reason to know and taking into account all the facts and circumstances, it would be inequitable to hold that person liable.

    2. Separate Liability Election. An election made by a person who filed a joint return and later claimed separate liability from their spouse. The claimant must be legally separated, living apart for 12 months or more, or no longer married to the spouse with whom he or she filed the joint return at the time the claim was filed.

    3. Equitable Relief. Request made by a person who filed either a joint return or a return as "married filing separately" in a community property state, and later claimed that taking into account all of the facts and circumstances, it would be inequitable to hold that person liable.

    Note:

    IRM 25.15 provides technical and procedural guidance.

  2. Taxpayers are instructed to file Form 8857, Request for Innocent Spouse Relief, to request relief if they are making the preceding claims.

  3. When the taxpayer attaches correspondence to the return and indicates Innocent Spouse, Separate Liability Election, Equitable Relief, Joint and Several Liability, or Form 8857 is attached to the return, enter 3 in Field 01CCC.

    Note:

    When multiple CCCs are present, CCC 3 must be entered first.

  4. Innocent Spouse Relief requests are processed in Cincinnati only. When the taxpayer attaches correspondence to the return that identifies him/her as a claimant or when Form 8857 is attached to the return:

    1. Detach the correspondence and Form 8857 and all supporting documentation.

    2. Edit working trails on the return and the correspondence and Form 8857.

    3. Prepare Form 4227, noting "Innocent Spouse Request," and attach it to the detached items.

    4. Give Form 8857 and all documents related to it to your manager.

    5. Leave the return in the block and process as normal.

  5. Send all claims daily, via traceable mail, to the following address:
    Cincinnati Internal Revenue Service Center (CIRSC)
    Stop 840F

International Returns

  1. Treat any return with an address outside the 50 United States and District of Columbia as an international return.

    Note:

    This does not include APO/FPO addresses.

    Caution:

    Taxpayers may report income earned in a foreign country or through a business located in a foreign country. As long as the tax return has a domestic address and does not meet international criteria, the foreign income does not make it an international return.

  2. International tax returns are identified by the presence of one of the following:

    • An address outside the 50 United States and Washington, D.C. This does not include Army/Air Post Office (APO), Diplomatic Post Office (DPO), and Fleet Post Office (FPO) addresses.

    • Form 390 (American Samoa), American Samoa Individual Income Tax Return

    • Form 482.0/Formulario 482 (Puerto Rico), Planilla de Contribucion Sobre Ingresos de Individuous

    • Form 1040CM (CNMI), CNMI Territorial Individual Income Tax

    • Form 1040 GUAM, Guam Individual Income Tax Return

    • Form W-2 from American Samoa (W-2AS)

    • Form W-2 from CNMI (W-2CM)

    • Form W-2 from Guam (W-2GU)

    • Form W-2 from Virgin Islands (W-2VI)

    • Form 499R-2/W-2PR (Puerto Rican Withholding)

    • Form 1040-NR, U.S. Nonresident Alien Income Tax Return

    • Form 1040-NR-EZ, U.S. Income Tax Returns for Certain Nonresident Aliens With No Dependents

    • Form 1040-PR, Planilla para la Declaración de la Contribución Federal sobre el Trabajo por Cuenta Propia (Incluyendo el Crédito Tributario Adicional por Hijos para Residentes Bona Fide de Puerto Rico)

    • Form 1040-SS, U.S. Self-Employment Tax Return

    • Form 1042-S or letter signed by Competent Authority, Form SSA 1042-S, or Form RRB 1042-S

    • Form 2555, Foreign Earned Income

    • Form 2555-EZ, Foreign Earned Income Exclusion

    • Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa

    • Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI)

    • Form 8288-A, Statement of withholding under Section 1445

    • Form 8689, Allocation of Individual Income Tax to the U.S. Virgin Islands

    • Form 8804, Annual Return for Partnership Withholding Tax Under Section 1446

    • Form 8805, Statement of Withholding under Section 1446

    • Form 8813, Partnership Withholding Tax Payment

    • Form 8833, Treaty-Based Return Position Disclosure

    • Form 8854, Initial and Annual Expatriation Information Statement

    • Form 8891, U.S. Information Return for Beneficiaries of Certain Canadian Registered Retirement Plans

    • Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Possession

    • Form 14653 (Streamlined Foreign Offshore)

    • Form 14654 (Streamlined Domestic Offshore)

    • Dual Status -- Form 1040 and Form 1040-NR filed together for the same tax year, "Dual Status" or "D/S" indicated on the return (taxpayer claims part year residence and part year non - residence). Always leave Form 1040 and Form 1040-NR or Form 1040-NR-EZ for the same taxpayer together.

    • Nonresident Alien (NRA) -- Primary or both taxpayers are nonresident Alien

      Exception:

      Primary taxpayer is an NRA with no social security number (SSN); however, secondary taxpayer has an SSN and W-2 income.

    • International Tax Treaty -- taxpayer indicating exemption or exclusion of tax and/or income due to an International Tax Treaty.

      Note:

      An American Indian treaty return is not considered an international return. If no international condition exists, consider it a domestic return.

    • Treaty Trader

    • Fulbright Grantee

    • Notation of "Streamlined" on the return

    • Other Streamlined certification

    • IRC § 871, § 893, § 911,§ 913, § 931, § 932, § 933, § 934 or § 935 of the Internal Revenue Code (IRC) is notated anywhere on the return.

      Caution:

      If none of the International conditions listed above are present, consider it a domestic return and process it accordingly.

  3. Except in AUSPC use SSPND 651 to forward any international returns described in paragraph 1 or 2 to AUSPC for immediate processing. In AUSPC use SSPND 610 to have such returns renumbered.

    Caution:

    Unless the return meets other international criteria, do not transship returns when the taxpayer has converted income paid in a foreign currency. The taxpayer may, for instance, earn income in Canadian dollars, convert it to U.S. dollars, and then report it on the return in U.S. dollars.

    Note:

    Foreign income (usually reported on line 1, Form 1040 or line 21, Schedule 1 of Form 1040), FEC noted on line 1, Form 1040, or the presence of Form 1116 alone does not qualify for treatment as an international return.

KITA: Killed in Terrorist Action

  1. Route all returns identified as KITA/KIA, KITA-Oklahoma City, KITA-9/11, or KITA-Anthrax to the KITA coordinator in Accounts Management for processing.

    Note:

    A list of current KITA/KIA coordinators can be found at the SERP home page under the tab Who/Where.

  2. If the taxpayer writes Sec 692(d)(2) on the Other Payments line (line 65 for 2001 and line 59 for TY1995 returns only) of Form 1040 with a money amount to the right, Code and Edit should route to the KITA/KIA coordinators. Convert Form 1040A/EZ with Sec 692(d)(2) written anywhere on the return to a Form 1040 before sending the return to the KITA/KIA coordinator.

  3. If the KITA/KIA coordinator determines that the return does not qualify for KITA/KIA, the coordinator will attach a Form 4227 notating Not eligible for KITA/KIA to the front of the tax return. The Form 1040 will be returned to Code and Edit to complete processing. If the KITA/KIA coordinator determines that the return is not eligible under Sec 692(d)(2), Code and Edit will X any amount on the return where the taxpayer has written Section 692(d)(2).

  4. If the KITA/KIA coordinator determines that the return is not eligible under Sec 692(d)(2), ERS should enter the computer's amount for tax in Field 94TTV and assign TPNC 650.

    Note:

    Delete any amount claimed on the return for tax forgiveness under Section 692(d)2.

  5. If Code and Edit failed to identify a return as KITA/KIA, ERS should take the following action:

    1. Prepare Form 4227 stating KITA/KIA.

    2. SSPND 360 (other in-house research), and route the return to the KITA Coordinator.

  6. If the KITA Coordinator determines the taxpayer qualifies for KITA, the Coordinator will ship the return to the Kansas City KITA Coordinator.

  7. The KITA Coordinator will notify ERS Suspense when the return is routed to the Kansas City KITA Coordinator for processing. ERS Suspense should RJECT 640 to remove the document from ERS inventory.

Military Spouse Residency Relief

  1. For TY09 and later, the IRS offers tax relief for civilian spouses of active-duty members of the uniformed services. The Military Spouse Residency Relief Act of 2009 grants an extension of time to pay the income tax until October 15, 2010, without penalty.

  2. To elect the extension, the taxpayers filing a joint return write the phrase MSRRA on the top of their tax return.

  3. Taxpayers who file under the filing status married filing separately must attach the declaration below in addition to writing the phrase MSRRA on their return:
    I am claiming _________________ as my residence or domicile under the Military Spouses Residency Relief Act (MSRRA). Under penalties of perjury, I declare that I am qualified for relief under MSRRA because I am present in ______________ solely to accompany my spouse who is a service member serving in compliance with military orders, and my claimed residence or domicile is the same as my spouse’s residence or domicile.

  4. The declaration must be signed and dated by the taxpayer. Neither a stamped signature nor a faxed signature is permitted.

  5. Enter M and P in Field 01CCC when the taxpayers request an extension under MSRRA and satisfy the requirements.

Combat Zone Returns

  1. Members of the US armed forces paid by the US armed forces and serving in a combat zone or in a qualified hazardous duty area are entitled to an exclusion of wages earned in that zone and certain extensions of time for filing and paying. To identify that they are entitled to certain extensions of time, these taxpayers write the location or operation of the military endeavor on the top of their tax return.

    Note:

    Do not enter CCC "M" if the return is a Combat Zone return.

  2. Do not allow write-ins of income exclusions for combat zone pay. If the taxpayer excludes income earned in a combat zone, enter Y in Field 01CCC. Delete the exclusion on line 21 of Schedule 1 of Form 1040 or restore in full the wages on line 1 of Form 1040 or line 7 of Form 1040A. Assign TPNC 165. Further instructions, see EC 260.

    • Members of the U.S. armed forces serving in a defined combat zone or in direct support of one are entitled to an exclusion of all or a portion of their compensation received for active service in the armed forces of the United States. The Department of Defense excludes the eligible combat pay from the wages reported on Form W-2, box 1.

    • The taxpayer may not further reduce the wages.

    • This benefit is available only to members of the US armed forces.

    • Employees of firms under contract by the Defense Department may not exclude income earned in a combat zone.

  3. Take the following appropriate action when one of the military operations listed is noted on the return:

    If the taxpayer notes... And... Then...
    A] Operation Enduring Freedom
    Operation Noble Eagle
    Operation Iraqi Freedom
    Egypt
    Sinai Peninsula-Egypt
    Jordan
    Operation New Dawn
    Combat Zone or similar statement
    09/19/2001 and later
    03/19/03 to 04/20/03 (Egypt)
    03/19/03 and later (Jordan)
    Enter K in Field 01CCC.
    B] Bosnia
    Croatia
    Former Yugoslavia
    Herzegovina
    Joint Guard
    Macedonia
    Operations Allied Force
    Operation Joint Endeavor
    TY97 and later, Enter R in Field 01RPC.
    C] Former Yugoslavia TY94 and TY93, Enter D in Field 01CCC.
    D] Desert Storm (Persian Gulf area)
    Joint Forge
    Joint Guard
    Northern Forge
    Northern Watch
    TY90, Enter Z in Field 01CCC.
    E] Haiti
    Operational Uphold Democracy
    Operation GTMO
    TY94 and TY93, Enter D in Field 01CCC.
    F] UN Operation TY92 and later, Enter D in Field 01CCC.
    G] Somalia or Somalia Restore Hope TY93 and TY92, Enter D in Field 01CCC.
    H] Haiti or Operation Unified Response TY10 and TY09 Enter D in Field 01CCC.
  4. Enter Y in Field 01CCC if the taxpayer notes a combat zone or tax period not listed in the preceding table.

    Note:

    Several military operations are covered under UN Operation notation. Refer to your Lead Tax Examiner, who will contact National Office.

  5. For further information about military returns, see EC 260.

Natural Disaster and Emergency Relief Program

  1. The Natural Disaster / Emergency Relief Program provides relief from late filing and/or late payment penalties for taxpayers in declared disaster or emergency areas.

    1. The program coordinator will notify the campuses when an area has been designated for natural disaster or emergency relief.

    2. Disaster and emergency notifications will include the dates of the extensions of time to file returns and pay taxes.

    3. Taxpayers will be required to call to self-identify themselves as disaster filers.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Conversion of Returns

  1. In some instances, it is necessary to convert a Form 1040A or Form 1040EZ to a Form 1040 to process it.

  2. Convert Form 1040A or Form 1040EZ to Form 1040 by using Action Code 610.

    Exception:

    If information is missing, SSPND 211 to correspond before converting the return.

    Note:

    If Form 1099-MISC is attached with an amount in box 7 and no Self Employment Tax is present, SSPND 211 for Self Employment Tax liability.

  3. When working a converted return and a TPNC is required to resolve the error, assign TPNC 111 as the first notice code to inform the taxpayer the return has been converted to a Form 1040.

  4. Use the following table to identify instances when it is necessary to convert a Form 1040A or Form 1040EZ to a Form 1040 for the return to be processed through the system.

    Condition Present or Claimed Form Type
    Additional Standard Deduction for Age/Blindness, Form 1040EZ
    Any line is used that is not a printed line (write-ins) or ERS input only field, Form 1040A, Form 1040EZ
    Community Property is indicated by the taxpayer, Form 1040EZ
    Dependent(s) claimed, Form 1040EZ
    Filing Status Code is other than 1 (single) or 2 (married filing joint), Form 1040EZ
    Gambling losses that are greater than the taxpayer's correct standard deduction amount, Form 1040A, Form 1040EZ
    Interest Income of greater than $1,500, or a negative interest amount, Form 1040EZ
    Prizes/awards over $1,000, Form 1040EZ
    Self Employment - Clear indication of self-employment income of
    • $434 or more if the EIC is claimed;

    • $2,000 or more, otherwise,

    Form 1040A, Form 1040EZ
    Social Security and Equivalent Railroad Retirement Benefits, Form 1040EZ
    Tax period less than 12 months, Form 1040A, Form 1040EZ
    Tax period is other than calendar year (month ending 12), Form 1040A, Form 1040EZ
    Tax period is earlier than 197212, Form 1040A
    Tax period is earlier than 198212, Form 1040EZ
    Taxable Income is $100,000 or more, Form 1040A, Form 1040EZ
  5. The preceding list is not all-inclusive. Any time a Form 1040A/EZ is filed with a form or schedule that is applicable to Form 1040 exclusively (Schedule D attached to Form 1040A, for example), the return must be converted. See your Lead for other miscellaneous situations.

  6. SSPND 640 to send return back to the originator (Accounts Management, Exam, etc.) when incorrect changes will make the return unprocessable or create an unpostable condition.

  7. SSPND 610 when Form 1040/A is filed for a deceased taxpayer and information on the return indicates that a Form 1041 (U.S. Fiduciary Income Tax Return) (Estate/Trust Return) should be filed.

    Note:

    For further information about renumbering returns, refer to IRM 3.12.37, IMF General Instructions.

Misblocked Returns

  1. Form 1040 and Form 1040A identified as Injured Spouse returns should be batched together in blocking series 920-929. See IRM 3.12.2.3.6 (2) to convert such returns.

  2. If information is missing, SSPND 211 to correspond before converting the return.

    Note:

    For further information on renumbering documents, refer to IRM 3.12.37, IMF General Instructions.

  3. Take the following actions for misblocked returns.

    If... Then...
    A] Form 1040 is found in a Form 1040A or Form 1040EZ block, Enter SSPND 610.
    B] Form 1040A or Form 1040EZ is found in a Form 1040 block, Convert entries to Form 1040 format and continue processing.
    C] Form 1040A is found in a Form 1040EZ block, or vice versa, Enter SSPND 610.
    D] A prior year return is found in a current year block, Process the return using the prior year returns instructions at IRM 3.12.2.3.15.
    E] Form not in the 1040 series is found in a Form 1040 block, Refer the return to your lead.

Prior-Year Returns

  1. The computer is programmed to perform calculations for the current year and the two prior years. Follow current-year procedures to resolve errors for these three years. Returns for TY16 and prior may require a manual computation. Follow the applicable prior-year procedures.

  2. In processing year 2020, Code and Edit will edit TY19 line numbers on TY18 and prior forms and schedules when there is an entry to be transcribed.

  3. Validity errors and math errors are identified and corrected in the same manner as with current-year returns, with some exceptions or variations. These exceptions or variations are listed in the section descriptions or located at the end of the error code.

  4. Use the following general guidelines when processing prior-year returns:

    1. Correct coding errors, transcription errors and misplaced entries in displayed fields.

    2. Always ensure the tax period is entered correctly.

    3. Use the prior-year tax form to verify an amount manually and give the taxpayer the most beneficial allowable tax computation.

    4. Refer to Prior-Year Job Aid Book 2515-014.

Re-Entry (Reinput) Returns

  1. Tax returns that are being put through the system again will generally have a Form 3893 attached indicating what, if any, actions were taken. The following are some of the reasons that documents will be re-entered or reinput:

    1. Withholding has been adjusted because of a prior refund.

    2. The period ending is being changed.

    3. An amended return is being changed to an original return.

    4. Filing Status is being changed.

    5. CP 29 or CP 36 is attached.

    6. Substitute for Return (SFR) or has previously corresponded with the taxpayer.

    7. SSN / TIN change

    8. TRPRT print of return - MeF return being reinput

  2. The following are general guidelines for working Re-entry returns.

    1. Do not change corrections shown in brown or red ink on the form/return.

    2. Do not correspond - SSPND 640 and return document to the originator when the return is unprocessable.

      Exception:

      For MeF Returns, perfect the return using the originally filed return on EUP.

    3. Follow normal processing procedures when the originator states "process as an original return" .

    4. Do not correspond for signatures on TRPRT print of return (MeF).

Taxpayer Advocate Service

  1. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. TAS criteria include economic burden, systemic burden, best interest of the taxpayer, and public policy (as determined solely by the National Taxpayer Advocate (NTA)). TAS is responsible for assisting taxpayers who have unresolved problems with the IRS. Refer to IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for a complete list of TAS Case Criteria.

  2. The National Taxpayer Advocate has reached agreements with the Commissioner of Wage and Investment (W&I), Small Business and Self-Employed (SB/SE), Tax Exempt and Government Entities (TE/GE), Criminal Investigation (CI), Appeals, and Large Business and International (LB&I) divisions. These Service Level Agreements (SLAs) outline the procedures and responsibilities for the processing of TAS casework when either the statutory or the delegated authority to complete a case transaction rests outside of TAS.

  3. A referral to a TAS office is not necessary even if TAS case criteria is met if an operating division or function can immediately resolve the issue within 24 hours. It is important that all IRS employees handle potential TAS cases with the taxpayer’s best interest in mind. More information on 24-hour same-day resolution can be found in IRM 13.1.7.4, Same Day Resolution by Operations.

  4. If action can be taken within 24 hours to resolve the taxpayer’s issue, but the taxpayer requests TAS assistance or is not satisfied with the service provided, refer the taxpayer to the NTA toll-free number, 1-877-777-4778 or TTY/TDD 1-800-829-4059.

  5. If the IRS employee receives taxpayer contact that meets TAS criteria, and the employee cannot initiate action to resolve the taxpayer's inquiry or provide the relief requested by the taxpayer within 24 hours, refer the case to TAS. A taxpayer should not have to request TAS assistance to be referred to TAS. IRS employees will advise taxpayers of the option to seek TAS assistance when appropriate. TAS will request documentation from the taxpayer to support the requested relief, or when required by the IRM.

  6. Taxpayers, their representatives, or IRS employees may complete Form 911, Request For Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), when a taxpayer meets TAS criteria. Refer Form 911 to the Local TAS Office within 24 hours of receipt. See Exhibit 3.12.2-11, Attachment Guide, for procedures for routing Form 911 to the TAS Office.

  7. The following types of cases are exceptions to TAS criteria and should not be referred to TAS:

    • The taxpayer's complaint or inquiry only questions the constitutionality of the tax system.

    • Cases where the focus of the taxpayer's inquiry is solely to employ frivolous tax strategies to avoid or delay filing or paying federal taxes.

Electronic Returns

  1. Any processing center can process electronic returns with command code (CC) CMODE. CMODE allows an IDRS user access to different IDRS databases. To change modes, enter CMODE and a two-digit abbreviation for another center. Refer to Job Aid Book 2515-015 for procedures for the use of CC CMODE.

  2. If you cannot close an electronic return and have to suspend it, create a paper trail by following these steps.

    1. GTSEC 01 of the return in question and print.

    2. Write the number of the action code used for suspension, the error code with the instruction for suspension, and the reason for the suspension on the print. Type or write the information on the print of Section 01.

      Example:

      AC 211, EC 118, Correspond for Form W-2

    3. Complete Form 6001, Correspondence Action Sheet, or Form 4227, Intra-SC Reject or Routing Slip, if necessary, and attach it to the print of Section 01.

    4. Place the print in the area designated for electronic return suspense.

  3. If the IRM instructs you to assign a TPNC 100, create a paper trail by following these steps.

    1. GTSEC 01 of the return in question and print.

    2. Complete Form 12126 with the approved text of the TPNC 100 and any other TPNCs assigned to the return and attach it to the print of Section 01.

    3. Place the print of Section 01 in the area designated for electronic returns TPNCs 100.

  4. If a center has taken on some of the inventory of another center, the primary center must identify P&A contacts, establish communications, and arrange how and when the assisting center is to transfer suspended returns and/or returns with TPNC 100 to it. The transfer of suspended returns and/or returns with TPNC 100 must take place daily.

Deceased Taxpayer

  1. If the return is filed by a spouse, personal representative (executor, administrator, fiduciary designee or trustee) or an individual other than the deceased taxpayer, you may have to request documentation to verify the legal right of the filer to submit the return on behalf of the deceased taxpayer.

    1. If the surviving spouse filed the return (FSC 2), no documentation is needed. Enter the surviving spouse’s name in Field 01NL2.

    2. ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      To be considered complete, Form 1310 must meet the following requirements:
      • Signature must be present.
      • If box A is checked, the return must be FSC 2.
      • If box B is checked, a copy of the court appointment must be attached. If not attached, correspond for a court certificate.
      • If box C is checked, Question 2a and 2b in Part II must be answered with "no." If question 2a or 2b is answered with "yes" or left unanswered, correspond for a court certificate.
      • If box C is checked, Question 3 in Part II must be answered with "yes" unless a court certificate is provided. If Question 3 is answered with "no" or left blank and no court certificate is present, correspond for a court certificate that entitles the person to the refund.

    4. Enter or correct Field 01NL1 per IRM 3.12.2.4.3.5, and enter or correct Field 01NL2 if adequate documentation (Form 1310 and/or court certificate) is provided.

    5. See IRM 3.12.3.7.3.3 (1) through (8) for assignment of computer condition codes.

Multiple Filers on the Same Return

  1. If filers report wages or other income or withholding that doesn't belong to the primary or secondary taxpayer, allow only the income and withholding for the primary or secondary taxpayer. Adjust the return and assign TPNC 100 with this text.

    • "We adjusted your tax return, allowing only the income and withholding for the taxpayer(s) listed on page 1 of the return and excluding all other income and withholding. The other person(s) must file their own tax return to report their income."

    Note:

    See IRM 3.12.2.3.22 before adjusting return.

  2. If the income and withholding you excluded belongs to a dependent claimed on the return, take the following actions:

    1. Detach income and withholding statements from the return.

    2. Edit in the left margin "Detached income/withholding document" as appropriate.

    3. Take detached documents to work leader. The work leader will complete Form 5260, Quick Note, indicating the documents were removed from another taxpayer's return and if they have not filed a return they need to do so. Mail the Quick Note and income and withholding statements to the individual listed on the documents.

      Note:

      Use the following verbiage on Form 5260, "We have detached the enclosed income and/or withholding statement(s) from your XXXX (XXXX = tax year) tax return. The name(s) on the statement(s) is that of your dependent(s). A separate tax return will need to be filed. If you need additional assistance or have any questions, you may call 1-800-829-0922."

  3. If the income and withholding statements do not belong to the Primary or Secondary taxpayers or the dependents:

    Note:

    See IRM 3.12.2.3.22 before taking the following actions.

    1. Detach income and withholding statements from the return.

    2. Edit in the left margin "Detached income/withholding document" as appropriate.

    3. Take detached documents to work leader. The work leader will complete Form 5260, Quick Note, indicating the attached documents were removed from another taxpayer's return and if they have not filed a return they need to do so. Mail the Quick Note and income and withholding statements to the taxpayer shown on the documents.

      Note:

      Use the following verbiage on Form 5260, "We have detached the enclosed income and/or withholding statement(s) from another taxpayer's tax return. If you have not filed a tax return for this tax year, you will need to file your tax return. If you need additional assistance or have any questions, you may call 1-800-829-0922."

  4. If a return is received without any income documentation (e.g., W-2, 1099, etc.) and page 1 and page 2 are two different taxpayers, research using CC ERINV to determine if there is another return currently being processed. If found, associate with return. If research shows no other return is currently being processed, SSPND 640.

Multiple Tax Periods on the Same Return

  1. If the taxpayer includes in the tax return income from a tax year different from that of the tax period of the return (e.g., W-2's for more than one tax year, or income statements for another tax period, etc.), allow only the income and withholding for the year of the tax return in hand. Adjust the taxpayer's figures to include only income and withholding for that tax year.

  2. Assign TPNC 759

  3. If the taxpayers' return includes page 1 and page 2 from two different tax periods take the following actions:

    1. Research and determine if the taxpayer had submitted return for either tax period. If tax period for page 2 is posted, correspond with the taxpayer using fill-in #1

    2. If the tax period for page 2 has not posted and page 1 or page 2 has an original signature, verify all required schedules or forms with an amount present on page 2 are attached and take the following actions:
      Form 1040- For TY17 and prior, enter line 38 amount in Fields 0408, 03TOT, and 03AGI. For all tax years, enter amounts in the appropriate fields to reflect attached forms/schedules (for example Schedule C, Field 0403) if the tax period matches the tax period shown on page 2. Enter N in Field 01RPC (if EC 088 displays, enter C in the Clear Field). Assign all appropriate notice codes.
      Form 1040A- For TY17 and prior, enter the line 22 amount in Fields 04OTI, 0315, and 0321. Enter N in Field 01RPC (if EC 088 displays, enter C in the Clear Field). Assign all appropriate notice codes.

    3. If research indicates that neither tax period’s return (page 1 or page 2) has posted, correspond with the taxpayer using fill-in #2

  4. For all other income and withholding statements that do not belong to that tax period, take the following actions:

    1. Detach income and withholding statements from the return.

    2. Edit in the left margin "Detached income/withholding document" as appropriate.

    3. Take detached documents to work leader. The work leader will complete Form 5260, Quick Note, indicating the attached documents were removed from their return and must be filed on a separate return if they have not been filed for that tax period. Mail the Quick Note and income and withholding statements to the taxpayer shown on the documents.

      Note:

      Use the following verbiage on Form 5260, "We have detached the enclosed income and/or withholding statement(s) from your XXXX (XXXX=tax year) tax return. The statement(s) are for a different tax year(s). If you have not filed a tax return for this year, you will need to file your tax return. If the enclosed statements are for more than one year, you will need to file a return for each tax year. If you need additional assistance, you may call 1-800-829-0922."

Tax Return for an ITIN, Income and Withholding Statements for SSN

  1. Some undocumented workers work under an SSN and receive income and withholding statements from employers in the name and SSN of the holder of the SSN, and they attach those documents to their tax return. They file their tax return under their name and ITIN. Accept these returns. Do not correspond because of the discrepancy between the name and SSN in the income and withholding statements and the name and ITIN in the return.

  2. Allow the income and withholding, and process the return according to procedures.

  3. Pursue discrepancies between the income and withholding statements and the corresponding figures in the return according to normal procedures. Do not consider the returns suspect unless they fit the description of a suspect return, see IRM 3.12.2.3.4, Suspect Returns, or they meet other criteria for referral.

Section 01, Entity And Miscellaneous Information

  1. Section 01 includes the following information.

Error Record Format, Section 01

  1. Section 01 contains the following fields:

    Form 1040 Form 1040A Form 1040EZ Field Name Field Location
    01PNC 01PNC 01PNC Primary Name Control Entity Area
    01PS 01PS 01PS Primary SSN Entity Area
    01SNC 01SNC 01SNC Secondary Name Control Entity Area
    01SS 01SS 01SS Secondary SSN Entity Area
    01NL1 01NL1 01NL1 Name Line 1 Entity Area
    01NL2 01NL2 01NL2 Name Line 2 Entity Area
    01ADD 01ADD 01ADD Street Address Entity Area
    01C/S 01C/S 01C/S City/State Entity Area
    01ZIP 01ZIP 01ZIP ZIP Code Entity Area
    01TXP 01TXP 01TXP Tax Period Page 1 of tax return
    01SPC 01SPC 01SPC Special Processing Code Page 1 of tax return
    01FSC 01FSC 01FSC Filing Status Code Page 1 of tax return
    01CCC 01CCC 01CCC Computer Condition Code Page 1 of tax return
    01EXC 01EXC 01EXC Exemption Code Field Page 1 of tax return
    01DSI 01DSI 01DSI Dependency Status Indicator Page 1 of tax return
    01ABI 01ABI 01ABI Age/Blind Indicator Entity Area (Page 2, TY17 and prior, Form 1040/Form 1040A)
    01COV 01COV 01COV Health Care Responsibility Coverage Checkbox, TY18 and prior Entity Area, TY18;
    TY17, line 61, Form 1040
    line 38, Form 1040A
    line 11, Form 1040EZ
    01DN1 01DN1   Dependent 1 Name Control Page 1 of tax return
    01DS1 01DS1   Dependent 1 SSN Page 1 of tax return
    01CT1 01CT1   Dependent 1 Child Tax and Other Dependent Credit Code Page 1 of tax return
    01DN2 01DN2   Dependent 2 Name Control Page 1 of tax return
    01DS2 01DS2   Dependent 2 SSN Page 1 of tax return
    01CT2 01CT2   Dependent 2 Child Tax and Other Dependent Credit Code Page 1 of tax return
    01DN3 01DN3   Dependent 3 Name Control Page 1 of tax return
    01DS3 01DS3   Dependent 3 SSN Page 1 of tax return
    01CT3 01CT3   Dependent 3 Child Tax and Other Dependent Credit Code Page 1 of tax return
    01DN4 01DN4   Dependent 4 Name Control Page 1 of tax return
    01DS4 01DS4   Dependent 4 SSN Page 1 of tax return
    01CT4 01CT4   Dependent 4 Child Tax and Other Dependent Credit Code Page 1 of tax return
    01RCD 01RCD 01RCD Received Date Page 1 of tax return
    01RPC 01RPC 01RPC Returns Processing Code Field Page 1 of tax return
    01ACD 01ACD 01ACD Audit Code Page 1 of tax return
    01PEF 01PEF 01PEF PECF-CD Page 1, right of entity

Entity Information

  1. The entity area consists of the taxpayer's name, address and SSN. The taxpayer's name, address and SSN (Fields 01PNC through 01ZIP) are transcribed as short entity, partial entity, intermediate entity, or long entity.

  2. The following table shows descriptions of Entity types:

    Entity Type Field Used Description
    A] Short -
    1. 01PNC

    2. 01PS

    3. 01SS

    Return that agrees with EIF for name, address or Primary SSN.
    B] Partial -
    1. 01PS

    2. 01SS

    3. 01NL1

    4. 01NL2

    Return with changes in First or Second Name Line.
    C] Intermediate -
    1. 01PNC

    2. 01PS

    3. 01SS

    4. 01ADD

    5. 01C/S

    6. 01ZIP

    1. Return with changes in any part of the street, address, City/State or first five digits of the ZIP Code.

    2. EIF indicates a Change of Address.

    D] Long -
    1. 01PNC

    2. 01PS

    3. 01SS

    4. 01NL1

    5. 01NL2

    6. 01ADD

    7. 01C/S

    8. 01ZIP

    1. Return with a change in the Primary SSN.

    2. Return with a change in both the Name and Address.

    3. Return that does not agree with EIF for Primary SSN, name or address.

    4. Return when ISRP cannot use EIF.

    5. Entity Control Function has changed the Primary SSN or has assigned a temporary number.

    Note:

    Processing will enter the Secondary SSN, if present, at the NAP file when FSC is 2 and the Secondary SSN field is blank (i.e., short or intermediate entity).

Correction Procedures

  1. Correction procedures for Section 01 fields follow.

Field 01PNC, Check Digits/Name Control
  1. Correction procedures for Check Digits and Name Control follow.

Check Digits
  1. A Check Digit is a unique two-digit field that identifies the taxpayer from previous filings. The ERS screen will show the check digits as a four position field, the first two positions being blank and the second two filled with alpha digits. The Check Digit Field is located in the Entity portion of the paper return.

  2. This field will be invalid if any of the following exist:

    1. First two positions are not blank.

    2. Third and fourth positions are not alpha characters.

    3. Additional validity checks by the computer.

  3. Correction Procedures:

    1. Enter the Name Control in Field 01PNC when the check digits are invalid. Refer to Document 7071, Name Control Job Aid, or IMF ERS Job Aid Book 2515-015.

    2. If an ITIN is written in red on the return, use the name control entered in red ink.

    Caution:

    NEVER ENTER OR CORRECT CHECK DIGITS.

Name Control
  1. Name Control is a four position field located in the Entity portion of the return and consists of the first four letters of the primary taxpayer's last name.

  2. This field will be invalid if any of the following exist:

    1. First position is not an alpha.

    2. The second, third, or fourth positions are not alphas, hyphens, or blank.

    3. Blanks are between characters.

  3. Correction Procedures:

    1. Compare the field with the return and overlay the correct Name Control. Blank the remaining positions when the primary taxpayer's last name is less than four characters. Refer to Document 7071, Name Control Job Aid, or IMF ERS Job Aid Book 2515-015.

    2. If an ITIN is written in red on the return, use the name control entered in red ink.

Field 01PS, Primary Social Security Number
  1. Every primary taxpayer must have a taxpayer identification number (TIN). That TIN may take several forms: a social security number (SSN), individual taxpayer identification number (ITIN), or IRS number (IRSN). In this IRM, SSN is often used in a collective sense and may refer indiscriminately to any one of the three kinds of TIN. The IRSN may be referred to as a temporary TIN. The IRS issues the ITIN and IRSN. The Social Security Administration issues the SSN.

    • The SSN and ITIN may be valid or invalid.

    • The IRSN is always invalid.

    • Each of these TINs is nine digits long and has the same format: XXX-XX-XXXX.

    • The ITIN and IRSN always begin with the number 9. The SSN does not begin with the number 9.

    • The fourth and fifth digit of the ITIN and IRSN are restricted to certain values.

    • The valid ranges for the fourth and fifth digit of the ITIN are 50 through 65, 70 through 88, 90 through 92, and 94 through 99. The ranges are listed below.
      9XX-50-XXXX through 9XX-65-XXXX
      9XX-70-XXXX through 9XX-88-XXXX
      9XX-90-XXXX through 9XX-92-XXXX
      9XX-94-XXXX through 9XX-99-XXXX

    • The values for the fourth and fifth digit of the IRSN are listed below. The fourth and fifth digit of the IRSN identify the center that issued the IRSN. The Fresno Service Center would have issued an IRSN in the format 9XX-89-XXXX and Kansas City one in the format 9XX-09-XXXX, for instance.
      08 and 38: Andover
      07 and 37: Atlanta
      18 and 06: Austin
      19 and 01: Brookhaven
      17 and 02: Cincinnati
      89 and 10: Fresno
      09 and 39: Kansas City
      49 and 03: Memphis
      29 and 04: Ogden
      28 and 05: Philadelphia
      66: Austin ONLY, IRSN for International returns

    Note:

    There is a fourth kind of TIN, the Adoption Taxpayer Identification number (ATIN). It is possible that a primary taxpayer would have an ATIN, but it's unlikely, and therefore isn't described above. Like the other TINs, it's nine digits long and divided into three groups of digits: XXX-XX-XXXX. Like the ITIN, it always begins with a 9, but unlike the ITIN, its fourth digit is always 9 and its fifth digit always 3: 9XX-93-XXXX.

  2. This entry in the field is invalid in any of these conditions:

    1. The entry has fewer than nine numeric characters.

    2. The digits are all zeros or all nines.

    3. The field is blank.

  3. Correction procedures. Search the return, attachments, and Form(s) W-2 for a P-SSN when the P-SSN is invalid as outlined in the preceding (2). If you cannot find the P-SSN in the return or attachments, research with CC NAMEI, NAMES, and INOLE for P-SSN. In AUSPC research with RTS for the primary taxpayers' ITIN. Take the following action to correct the field:

    If the P-SSN is... Then...
    A] Found (valid), Enter in Field 01PS.
    B] Not Found, SSPND 211 to correspond.

    Exception:

    Conditions such as taxpayer having "Amish" , "Mennonite" , "none" , "SSN Applied For" , "NRA" , "SSA 205(c)" , or all nines or zeroes entered indicates that the person may be eligible to obtain an ITIN. SSPND 320 to have an IRSN assigned by Entity.

    Note:

    Check for the presence of Form W-7. If present, see Exhibit 3.12.2-11 for routing.

    Note:

    When returns come back from Entity with an IRSN, enter O in Field 01RPC and 0 (zero) in the first position of Field 94EXV if applicable. If the taxpayer indicates that he or she is Amish or Mennonite, don't enter O in Field 01RPC or 0 (zero) in the first position of Field 94EXV. Do enter B in Field 01RPC though.

  4. SSPND 351 when IDRS is unavailable.

  5. FOR AUSPC ONLY- If the return has an ITIN, written in red ink and W-7 is stamped in the bottom left hand corner of the return, follow the instruction in the following table:

    Note:

    An ITIN begins with "9" and the fourth and fifth numbers range from 50-65, 70-88, 90-92, and 94-99; (9XX-50-XXXX through 9XX-65-XXXX), (9XX-70-XXXX through 9XX-88-XXXX), (9XX-90-XXXX through 9XX-92-XXXX), or (9XX-94-XXXX through 9XX-99-XXXX). When a TIN begins with "9" and the fourth and fifth digits are "66" (9XX-66-XXXX), it is used for International IRSN only.

    If... Then...
    A] The ITIN Operation stamped or wrote rejected for the primary taxpayer, SSPND 320 to Entity Control for a temporary number. (If a red temporary number is already written (9XX-18-XXXX) on the return with a number that has 18 in the fourth and fifth position of the TIN Field, process using the IRSN. See Note Below)
    B] No primary ITIN is written, but RTS research shows Form W-7 in status S or U (Suspended or Unworked), Print the RTS screen and attach the print to the front of the return. SSPND 640 to ITIN. Indicate the status on Form 4227.
    C] Original W-7 attached to return, SSPND 640 to ITIN. Write W-7 attached on Form 4227.

    Note:

    When returns come back from Entity with temporary numbers, enter O in Field 01RPC and 0 (zero) in the first position of Field 94EXV if applicable.

Field 01SNC, Secondary Name Control
  1. The Secondary Name Control is a four position field consisting of the first four letters of the secondary taxpayer's last name. If the last name contains fewer than four characters, the name control will be shorter than four characters.

  2. This field will be invalid if any of the following exist:

    1. First position is not an alpha.

    2. The second, third, and fourth positions are not alphas, hyphens, or blank.

    3. Blanks occur between characters.

  3. Correction Procedures - Compare the field with the return and overlay the correct Name Control. Blank the remaining positions when the secondary taxpayer's last name is less than four characters.

    1. If the FSC is 3, the secondary name control should not be present. Delete the secondary name control.

    2. Refer to Document 7071, Name Control Job Aid, or Job Aid Book 2515-015.

Field 01SS, Secondary Social Security Number
  1. A secondary social security number (S-SSN), consisting of nine numbers, must be present on every joint return.

    Note:

    Any reference to an SSN will also include the ITIN.

  2. The S-SSN is required when any of the following exist:

    1. Estimated Tax Payment is claimed but was paid under a different name.

    2. Self-Employment (SE) Tax is being paid for the secondary taxpayer.

    3. IRA (Individual Retirement Arrangement) Form 5329, is reported for the Secondary taxpayer.

    4. Primary taxpayer is deceased and it is a joint return.

    5. Form 4137 tax is being paid for the secondary taxpayer.

    6. Schedule H is filed for the secondary taxpayer.

    7. Form 8606 is filed for the secondary taxpayer.

    8. Form 8919 tax is being paid for the secondary taxpayer.

      Note:

      See action to take in (4)C] when S-SSN is required and not found.

  3. This field will be invalid if fewer than 9 numeric characters are present.

  4. Search the return, attachments, and Forms W-2 for an S-SSN when the S-SSN is invalid. If you cannot find the S-SSN in the return or attachments, research with CC ENMOD and/or INOLE for a cross-reference with the P-SSN. In AUSPC research with RTS for the secondary taxpayer's ITIN. Take the following action to correct the field:

    If an S-SSN is... And... Then...
    A] Found,   Enter in Field 01SS.
    B] Not Found, Not required Delete any invalid data in Field 01SS. Note: Request the S-SSN if other correspondence is needed.
    C] Not Found, Is required (see the preceding (2)), SSPND 211 to correspond.

    Exception:

    Conditions such as taxpayer having "Amish" , "Mennonite" , "none" , "SSN Applied For" , "NRA" , "SSA 205(c)" , or all nines or zeroes entered indicates that the person may be eligible to obtain an ITIN. SSPND 320 to have an IRSN assigned by Entity.

    Note:

    Check for the presence of Form W-7. If present, see Exhibit 3.12.2-11.

  5. AUSPC only: If the ITIN Operation stamped or wrote rejected for the secondary taxpayer SSPND 320 to Entity for a temporary number, if required as listed in (1).

  6. When IDRS is not available, SSPND 351.

  7. When return is a No Reply to an IRS request for a valid SSN or non-compliance because of religious beliefs and the S-SSN is required, SSPND 320 to have a temporary SSN assigned by Entity.

Field 01NL1, First Name Line
  1. The First Name Line is thirty-five spaces long. If the Name Line exceeds 35 spaces, a pound sign, # (paper return only), will fill the final position.

  2. This field will be invalid if any of the following exist:

    1. Characters are not alpha, ampersand, hyphen, less-than sign (<), or blank.

    2. The less-than sign is not present.

    3. More than two less-than signs are present.

    4. The first character is a less-than sign, blank, or ampersand.

    5. The last character is a less-than sign.

    6. The character immediately following the first less-than sign is not an alpha.

    7. A blank immediately precedes a less-than sign.

    8. Two or more consecutive embedded blanks are present.

    9. An ampersand occurs between two less-than signs.

    10. Two or more ampersands are present.

    11. An ampersand is present in the First Name Line and the Document Code is 72, or 73.

  3. Compare the fields displayed with data on the return. Correct any editing and transcription errors.

    Note:

    Do not enter information beyond column 41 of the ERS screen display.

  4. Delete all titles such as Mr., Dr., Reverend, etc.

    Exception:

    Do not delete Mrs. when a woman is using her spouse’s name; e.g., Mrs. John Brown.

  5. Use the following chart as a guide to correct various error conditions in the First Name Line:

    Error Condition Correction
    A] Joint Return, different last names. Less than sign before and after Primary Taxpayer's last name.

    Example:

    01NL1 JOHN A<WHITE<& JANE B GREEN

    B] Joint return, one person deceased, same names. Enter DECD after the first name and/or initial of the deceased taxpayer.

    Example:

    01NL1 JOHN A & JANE B DECD<WHITE

    C] Joint return, one person deceased, different name. Enter DECD after the last name of the deceased taxpayer.

    Example:

    01NL1 JOHN A<WHITE< & JANE B GREEN DECD

    Example:

    01NL1 JOHN A<WHITE<DECD & JANE B GREEN

    D] Joint return, both taxpayers deceased, same name. Enter DECD after the first name and/or initial of each taxpayer.

    Example:

    01NL1 JOHN A DECD & JANE B DECD<WHITE

    E] Joint return, both taxpayers deceased, different names. Enter DECD after each last name.

    Example:

    01NL1 JOHN A<WHITE<DECD & JANE B GREEN DECD

    F] Joint return and JR or SR to be carried after deceased. Enter JR or SR before DECD or at the end of the name line.

    Example:

    01NL1 JOHN A JR DECD & JANE M<WHITE

    Example:

    01NL1 JOHN A DECD & JANE<WHITE<SR

    H] Other than joint return and deceased. Enter DECD after the last name of the deceased taxpayer.

    Example:

    01NL1 JOHN A<WHITE<DECD

    I] No first name or taxpayer with only one name. Enter a hyphen preceding the less-than (<) sign.

    Example:

    01NL1 -<WHITE

    J] When in-care-of (%). Transcribe in Second Name Line using c/o.

    Example:

    01NL2 C/O DON B BLUE

    K] For Minor/Child Name Line. Enter Minor after last name.
    L] For deceased Minor/Child Name Line. Enter DECD after last name.

    Note:

    Research IDRS when the First Name Line is not present or incomplete. Enter as Short Entity if not found. See IMF Job Aid 2515-015 for additional information.

  6. When the name is longer than 35 spaces, abbreviate the First Name Line according to the priority below. When you complete the step that reduces the name to 35 or fewer spaces, stop editing the name.

    1. Shorten the secondary taxpayer's middle name to the initial.

    2. Shorten the primary taxpayer's middle name to the initial.

    3. Delete the secondary taxpayer's second initial.

    4. Delete the primary taxpayer's second initial.

    5. Shorten the secondary taxpayer's first name to the initial.

    6. Shorten the primary taxpayer's first name to the initial.

    Note:

    Use initials only for primary and secondary taxpayers' first name if the total characters will exceed the maximum of 35.

    Note:

    The computer will drop off anything after column 41.

Field 01NL2, Second Name Line
  1. The Second Name Line is 35 spaces long. If the Name Line exceeds 35 spaces or the Second Name Line is missing on a decedent return a pound sign, # (paper return only), will be present.

  2. Names preceded by the in-care-of sign, %, are transcribed in the Second Name Line Field.

  3. When the entity is Long or Partial and a Second Name Line is present, the First Name Line must be present.

  4. When Field 01CCC contains an L or W, the Second Name Line must be present if the entity is partial or long.

    1. Search return for Second Name Line or Form 1310.

    2. If a refund return and unable to find a name, SSPND 211, prepare Form 6001 using paragraph D.

    3. If not a refund return delete the pound sign (#).

  5. This field will be invalid if any of the following exist:

    1. Characters are not alpha, numeric, ampersand, hyphen, percent, slash, or blanks.

    2. A pound sign fills the final position-because the name is longer than 35 characters (paper return only).

  6. Examine the return and determine the type of entity when Field 01NL2 requires correction. See Job Aid Book 2515-015 for a list of acceptable abbreviations.

    Note:

    Do not enter information beyond column 41 of the ERS screen display. If you have to reduce the number of characters, refer to the steps for abbreviation in IRM 3.12.2.4.3.5(6).

Field 01ADD, Street Address
  1. Street address contains 35 characters. If more than 35 characters (including spaces), the last position will display with a # sign (paper return only).

  2. This field will be invalid if any of the following exist:

    1. Characters are not alpha, numeric, hyphen, slash, or blanks.

    2. Pound (#) sign in last position (over 35 characters, paper return only).

    3. When Field 01ADD is present, the first position must be alpha or numeric, and there cannot be consecutive embedded blanks/spaces.

  3. Use the following rules when entering the street address in Field 01ADD from the return or attachments:

    If the address... Then...
    A] Has % or in-care of, Use C/O.
    B] Has One-half, Use 1/2.
    C] Has &, Use AND.
    D] Has a pound (#) sign, abbreviation No., or the word number as a prefix to a house, street, route, apt, or P O Box, Omit the pound (#) sign, abbreviation No, or word number.
    E] Has an apartment number,
    1. Enter the abbreviation "APT" before the alpha or numeric.

    2. Enter both street address and apartment number.

    F] Includes both a street address and a P O Box number,
    1. Enter the street address in Field 01NL2.

    2. Enter the P O Box in Field 01ADD.

    G] More than 35 characters and all of the address is necessary,
    1. Correct as long entity.

    2. Start address in Field 01NL2.

    3. Separate the address in a comprehensible manner.

    H] Has consecutive embedded spaces, Delete the consecutive embedded blanks/spaces.

    Note:

    Do not enter information beyond column 41 of the ERS screen display.

Field 01C/S, City and State
  1. City/State Field is 25 characters. Data may be the City-State or a Major City Code (MCC).

  2. APO/DPO/FPO will be used as the city name for military addresses and should only be used with state codes AA, AE, or AP and will be in the following format:

    Field 01C/S Field 01ZIP
    APO/AE 090XX-099XX
    APO/AP 962XX-966XX
    APO/AA 340XX

    Note:

    DPO or FPO can be substituted for APO in the preceding chart. They use the same state and ZIP code ranges. APO/DPO/FPO filers are instructed to file at AUSPC; however, if received at a different center, process as normal. If the ZIP code is missing, enter the first three digits that apply to the state code and enter "01" as the last two digits.

  3. This field will be invalid when any of the following apply:

    1. Any character is other than alpha or blank (the slash is used only to separate the city and state for the computer).

    2. The slash is not preceded by at least three valid characters.

    3. The slash is followed by something other than two alpha characters.

    4. City/State or major city code is present and the first position is blank.

    5. The state is not contained in the following state-code table:

    State-Codes State-Codes
    AA-APO/FPO Atlantic MS-Mississippi
    AE-APO/FPO Europe MO-Missouri
    AL-Alabama MT-Montana
    AK-Alaska NE-Nebraska
    AP-APO/FPO Pacific NV-Nevada
    AZ-Arizona NH-New Hampshire
    AR-Arkansas NJ-New Jersey
    CA-California NM-New Mexico
    CO-Colorado NY-New York
    CT-Connecticut NC-North Carolina
    DE-Delaware ND-North Dakota
    DC-District of Columbia OH-Ohio
    FL-Florida OK-Oklahoma
    GA-Georgia OR-Oregon
    HI-Hawaii PA-Pennsylvania
    ID-Idaho RI-Rhode Island
    IL-Illinois SC-South Carolina
    IN-Indiana SD-South Dakota
    IA-Iowa TN-Tennessee
    KS-Kansas TX-Texas
    KY-Kentucky UT-Utah
    LA-Louisiana VT-Vermont
    ME-Maine VA-Virginia
    MD-Maryland WA-Washington
    MA-Massachusetts WV-West Virginia
    MI-Michigan WI-Wisconsin
    MN-Minnesota WY-Wyoming
  4. Compare the screen display with the entry on the return. Correct the field display when a field was transcribed incorrectly. GTSEC 01 and correct all fields in the section when there is a slipped field (when transcription inputs an entry on the wrong line resulting in all subsequent entries for the section being input on wrong lines).

  5. See IRM 3.12.2.3.8 on International returns.

  6. Use the following table to correct a field error:

    If the City/State... Then...
    A] Exceeds 25 characters, Consult the lead tax examiner or manager.
    B] Is missing and is required, Enter data for short entity only.
    C] Has more than one address and one is a permanent address, Use the permanent address.
    D] Is a temporary Foreign Address, See your manager to determine if a manual refund should be issued.
    E] Contains numeric characters, Convert to alpha characters (i.e., 1000 Oaks to Thousand Oaks).
    F] Contains ampersand (&), Convert to AND.
Field 01ZIP, ZIP Code
  1. The field for the ZIP Code is a numeric five-character field.

  2. An entry in the field is invalid in any of the circumstances below.

    1. It's not numeric; not 0 (zero) through 9.

    2. It's fewer than five digits long.

    3. It's more than five digits long, in which case ISRP enters a pound sign in the final position.

    4. It's blank.

    5. Its fourth and fifth character are 00.

  3. Correction Procedures. Search the return and attachments for the ZIP Code when it is incorrect or not present. Use the following table to correct the field error:

    If a ZIP Code is... And... Then...
    A] found, is for that address, Enter the correct five-digit ZIP Code in Field 01ZIP.
    B] found is not for that address,
    1. Determine the three-digit code for the address and enter it in Field 01ZIP. Refer to Exhibit 3.12.2-10 for the three-digit code.

    2. Enter 01 in the fourth and fifth position of Field 01ZIP.

    C] not found, the address is an APO or FPO, Enter the ZIP Code according to this table.
    1. AE: 09001

    2. AP: 96201

    3. AA: 34001

    D] not found, the address is not a APO or FPO,
    1. Determine the three-digit code for the address and enter it in Field 01ZIP. Refer to Exhibit 3.12.2-10 for the three-digit code.

    2. Enter 01 in the fourth and fifth position of Field 01ZIP.

    Note:

    DO NOT USE a center ZIP Code or an APO/FPO ZIP Code for a non-APO/FPO address. Use only the first five digits of the ZIP Code. The Field 01ZIP does not hold information beyond the fifth position.

Field 01TXP, Tax Period
  1. The field Tax Period holds the tax year and the ending month of the period. The tax period is in the format YYYYMM. The current period is never transcribed for current-year returns. It is transcribed for prior- and fiscal-year returns.

  2. This field is invalid if the tax period is other than those shown on the following chart:

    Form Current year Prior year
    A] 1040, including fiscal-year returns tax period not less than 201912 or more than current year and month. 196212 to 201911
    B] 1040A   calendar year 197212 to 201712
    C] 1040EZ   calendar year 198212 to 201712
  3. Field 01TXP will also be invalid when any of the following exist:

    1. Return is for a non-ADP tax period, before 196212.

    2. Forms 1040A/EZ is present for any fiscal-or short-year tax period (e.g., fiscal or short year tax period, such as 201902, month other than "12" ).

    3. Return shows a future tax period later than the current year and month.

  4. Verify the tax period on the return or attachments and correct any coding or transcription errors. Use the following table to correct field errors:

    The tax period is... The form is... Then...
    A] 201912 (current), 1040 blank field 01TXP; the programming generates 201912.
    B] before 196212 1040/A/EZ, SSPND 620.
    C] before 197212 1040A, SSPND 610 to renumber to Form 1040.
    D] before 198212 1040EZ, SSPND 610 to renumber to Form 1040.
    E] fiscal or short year 1040A/EZ, SSPND 610 to renumber to Form 1040
    F] future period: later than current year and month 1040 refer to Lead Tax Examiner. See the exception.

    Exception:

    Refer to EC 260 when the return is an early filed decedent return. (Also refer to EC 002, EC 042 and EC 046.)

Field 01SPC, Special Processing Code
  1. A special processing code (SPC) is an alphabetic or numeric character that flags a condition or triggers a computation. The number of SPCs in a return may not exceed ten. SPCs are edited vertically in the right margin on Form 1040, 1040A, or 1040EZ between the Secondary SSN and the Presidential Election Campaign boxes. These codes are used for center processing and are not posted to the Master File. These codes supplement the return processing codes.

  2. This field will be invalid if other than the following:

    1. Form 1040 (Doc Code 05, 06, 11, 12, 21 or 22) is other than 3, 7, 8, 9, A, B, C, E, F, G, J, K, L, M, N, P, Q, R, S, T, V, W, X or Z.

    2. Form 1040A (Doc Code 09 or 10) is other than 3, 8, 9, A, B, E, F, G, J, K, M, P, S, T or V.

    3. Form 1040EZ (Doc Code 07 or 08) is other than 3, 8, 9, B, E, J, M, P, S or T.

    Note:

    SPC "M" is for RICS use only. Do not remove.

  3. Correction Procedures - Refer to the Special Processing Code Exhibit 3.12.2-4 to determine the correct codes.

Field 01FSC, Filing Status Code
  1. The filing status code (FSC) for Form 1040 and Form 1040A is determined by the filing status checked by the taxpayer (FSC 1 through 5; or FSC 6 or 7 coded by Code and Edit). For Form 1040EZ, the FSC is determined by the number of names in the caption (FSC 1 = one name and FSC 2 = two names).

  2. The meaning of the FSCs are as follows:

    • Code 1: Single taxpayer

    • Code 2: Married taxpayer filing a joint return

    • Code 3: Married taxpayer filing a separate return and spouse is also filing a separate return

    • Code 4: Head of Household, for a dependent/exemption claimed in position 3, 5, 6, or 7 of Field 01EXC

    • Code 5: Widow(er) with or without dependent child, see EC 034.

    • Code 6: Married taxpayer filing a separate return but claims a spouse as a dependent/exemption who has no income and who is not filing a return

    • Code 7: Head of Household, for taxpayers who don't claim a dependent/exemption but write a child's name on Form 1040/1040A, or show a qualifying child in Form 2441, Form 8814, or Schedule EIC.

    Note:

    For TY18, taxpayers write a qualifying child’s name in the space provided in filing status area after Qualifying widow(er). For TY17 and prior, taxpayers write a qualifying child's name on line 4 of Form 1040/1040A.

    Note:

    Taxpayers who write a name in the space provided in filing status area don't have to provide a TIN for the qualifying child. The qualifying child on Form 2441, Form 8814 or Schedule EIC must have a valid TIN for the taxpayer to qualify for this variant of the filing status Head of Household or Widower.

  3. The entry in this field is invalid if it's not 1 through 7 for Form 1040 or Form 1040A or not 1 or 2 for Form 1040EZ.

  4. Use the following table to code Field 01FSC:

    If... And... Then...
    A] The taxpayer checked no boxes, There is one name in caption, Enter 1 in Field 01FSC.
    B] The taxpayer checked no boxes There are two names in caption, Enter 2 in Field 01FSC.
    C] Multiple boxes are checked or the FSC is inconsistent with information on return,   Use FSC that corresponds with taxpayer's taxable income and tax computation (see note).
    D] FSC 2 is on a Form 1040EZ, The tax period is TY82 - TY92,
    1. Process as normal prior-year return using correct standard or itemized deduction for filing status (computer will apply FSC 2 rates).

    2. Assign appropriate TPNC if necessary.

    Note:

    Before determining the FSC, verify that taxpayer meets the qualifying criteria in the filing status chart. Refer to the Filing Status Chart located in the ERS Job Aid Book 2515-015.

  5. Research IDRS using CC INOLE/RTVUE to determine filing status in prior year(s), if necessary.

  6. When the correct FSC cannot be determined, SSPND 211 with Form 5129.

Field 01CCC, Computer Condition Codes (CCC)
  1. Computer Condition Codes (CCC) are alpha and/or numeric character(s) edited by Code and Edit to alert the computer and Master File to a special condition. Some CCCs are also generated by the computer. A CCC will post to the Master File. The number of CCCs may not exceed ten. CCCs are edited as follows:

    1. For TY18 and later, Form 1040, CCC is edited in the spouse standard deduction area next to "spouse itemizes" checkbox.

    2. For TY17 and prior, Form 1040/A is edited in the center of the return, to the right of the "Single" box.

    3. For TY17 and prior, Form 1040EZ is edited to the left of the Wages Line.

  2. This field will be invalid if other than the following:

    1. Form 1040 (Doc Code 05, 06, 11, 12, 21 or 22) - is other than 1, 2, 3, 4, 5, 6, 7, 8, 9, A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, U, V, W, X, Y, or Z.

    2. Form 1040A (Doc Code 09 or 10) - is other than 1, 2, 3, 4, 7, 8, 9, A, B, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, U, W, X, Y, or Z.

    3. Form 1040EZ (Doc Code 07 or 08) - is other than 1, 3, 4, 7, 8, 9, A, B, D, E, F, G, H, J, K, L, M, N, O, P, Q, R, U, W, X, Y, or Z.

  3. Determine and enter the correct code when necessary. Refer to Computer Condition Code Exhibit 3.12.2-2.

    Note:

    When CCC 3 is required, it must be in the first position.

  4. SSPND 610 for renumbering when a Form 1040X has a CCC 5 or 6 preceded by a CCC G and is not in blocking series 990-999 or vice versa.

    Note:

    CCC 5 or 6 must always be preceded by a CCC G.

Field 01EXC, Exemption Codes, 8 positions
  1. TY18 and later, the exemption amount that can be claimed is $0. Exemption coding in Field 01EXC is retained for determining family size in certain calculations.

  2. Exemption Code(s) support the exemption(s) claimed by the taxpayer. Refer to the exemption code chart located in the ERS Job Aid 2515-015.

  3. Exemption descriptions are as follows:

    1. Placement of the code within the field identifies the exemption(s).

    2. The exemption code is computer generated for positions 1 (primary taxpayer) and 2 (secondary taxpayer).

    3. Code and Edit determines exemption positions 3 through 8.

    4. Exemption positions 3 through 8 (TY17 and prior, positions 5 through 8) are edited in the margin to the right of the dependents section.

      Note:

      Correction to Field 01EXC should be made for editing and transcription errors only. For MeF returns, do not make changes to Field 01EXC based on the description of exemption positions.

  4. The following are the descriptions of Exemption Positions used by Code and Edit:

    • Position 3: Children, grandchildren, adopted children, step-children living at home.

    • Position 4: Children who did not live with the taxpayer because of divorce or separation.

    • Position 5: Parents, grandparents, step-parents, mother/father-in-law.

    • Position 6: Qualifying children (i.e., eligible foster child, nieces/nephews, brothers/sisters, wards)

    • Position 7: Cousins, son/daughter-in-law, NRA spouse and FSC 4 with other exemptions, "NRA" /"SSA 205c" , "Canada" , "Mexico" , "CN" , or "MX" dependents or no relationship indicated

    • Position 8: Excess dependents (overflow)

  5. For TY17 and prior only, when the taxpayer claims a dependent in position 4, children who did not live with the taxpayer, SSPND 211 if one of the following is not attached:

    Note:

    Do not correspond if the dependent's TIN is missing or invalid.

    • Form 8332 (Release of Claim to Exemption for a Child of Divorced or Separated Parents),

    • Form 2120 (Multiple Support Declaration),

    • Copy of a divorce decree that was entered into in 2008 or an earlier year, and releases the custodial parent’s claim of exemption for that child

  6. This field will be invalid when any of the following exist:

    1. The field is all blank.

    2. The field contains other than numerics.

    3. Position one is other than 1.

    4. The correction input does not have every position entered.

    5. Position two is other than 0 (zero) or 1.

  7. This field will also be invalid when the Doc Code is 07 or 08 and either of the following exist:

    1. When Field 01FSC is 1, and position two through four of Field 01EXC is other than 0 (zero).

    2. When Field 01FSC is 2, and position two is other than 1 or positions three and four, of Field 01EXC, are other than 0 (zero).

  8. Take the following actions to correct the field error:

    1. Correct transcription and/or coding errors.

    2. Determine the correct exemption coding from the information on the return.

    3. Enter an entry in each position of the field.

  9. Only allow the exemptions that are supported by name (if used in the tax computation) when the taxpayer fails to total the exemptions.

Field 01DSI, Dependency Status Indicator, 1 position
  1. Dependency Status Indicator (DSI) is used when the primary taxpayer can be claimed as a dependent on someone else's return.

  2. For TY18 and later, ISRP will transcribe the dependent status indicator from page 1 of Form 1040 checkboxes, "someone can claim you as a dependent" and/or "someone can claim your spouse as a dependent" .

  3. For TY17 and prior, Code and Edit will code a 1 directly above line 6c, column (4) on Form 1040/A (ISRP transcribes from the You or Spouse box on line 5, Form 1040EZ) when the taxpayer did not make an entry in the box on line 6a and did not enter an exemption for themselves on the line to the right of lines 6a and 6b in the right hand margin of Form 1040/A. Refer to EC 252.

  4. When 1 is present in Field 01DSI all of the following will apply:

    1. The computer will limit the exemption amount for the primary taxpayer to zero.

    2. Standard Deduction Computer will be the greater of earned income plus $350 or $1,050 for TY18 - TY15, not to exceed the basic standard deduction for the filing status claimed.

    3. For TY17 and prior, the computer will not allow any dependent exemptions.

    Note:

    On any return when DSI 1 is valid and Field 94EXV is being used, enter 0 (zero) in positions 1 and 3 through 8 of Field 94EXV.

  5. This field will be invalid if other than blank or 1.

Field 01ABI, Age/Blind Indicators
  1. Age/Blind Indicators (ABI) Field is checked with the primary or secondary qualifies for additional standard deduction amount when 65 or older, or blind.

    • TY19, transcribed from page 1, Form 1040, above the Dependents line.

    • TY18, transcribed from page 1, Form 1040, below the primary and secondary taxpayer’s name lines.

    • TY17, transcribed from the four boxes on line 39a, Form 1040 (line 23a, Form 1040A). Refer to EC 252.

  2. This field will display with four generated zeros (0000) on the screen display and will be input as follows:

    Code Position Condition
    1 1 (1000) Primary taxpayer 65 or over
    1 2 (0100) Primary taxpayer blind
    1 3 (0010) Secondary taxpayer 65 or over
    1 4 (0001) Secondary taxpayer blind
  3. When the taxpayer did not check any ABI box, but is claiming an amount equal to a "combined amount" of standard deduction and additional standard deduction amount ($1,600 for FSC 1, 4, or 7; $1,300 for FSC 2, 3, 5 or 6), check for the following conditions:

    • An entry for Schedule R.

    • The taxpayer indicates 65 or older near the ABI boxes.

    • Certification of blindness is attached.

    • For TY17 and prior, an entry is present in the Total box on Form line 39a (line 23a, Form 1040A).

    Refer to EC 250 (TY17 and prior, EC 252).

Field 01COV, Health Care Responsibility Coverage Indicator
  1. Field 01COV is a one character numeric field for the "full-year health care coverage or exempt" checkbox, and is valid on 201911 and prior returns. For TY18, the code is located on page 1, Form 1040 under spouse’s SSN area. For TY17, health care responsibility coverage checkbox is located to the left of line 61, Form 1040 (line 38 of Form 1040A, line 11 of Form 1040EZ).

  2. The valid codes are as follows:

    1. 1 - box checked.

    2. 0 (zero) - box not checked.

  3. Field 01COV will display as a field error if other than 0 (zero) on 201912 and later returns.

Field 01DN1, 01DN2, 01DN3, 01DN4, Dependent Name Control
  1. Dependent Name Control is a four position field that consists of the first four letters of the dependent's last name and is located in the dependents area (TY17 and prior, exemption area) of the return. Code and Edit will edit the name control from Schedule EIC, attachments, or the primary taxpayer's name control. They will also X dependents without SSNs.

    Note:

    Field 01DN1/2/3/4 is entered on 199612 and later returns.

  2. This field will be invalid when either of the following exist:

    1. The first position is not an alpha.

    2. The second, third, or fourth positions are not alpha, hyphen, or blank.

  3. Compare the field with the return and correct accordingly. Blank the field when the dependent's SSN is not present.

Field 01DS1, 01DS2, 01DS3, 01DS4, Dependent SSN
  1. Dependent SSN Field is located in the dependents area (TY17 and prior, exemption area) of the return. Code and Edit will edit the missing SSN from the return and attachments when not present, if possible.

    Note:

    Field 01DS1/2/3/4 is entered on 199612 and later returns.

  2. This field will be invalid when fewer than nine numeric characters are present.

  3. When a correction is required to a TY96 or later return, search the return and attachments for the Dependent SSN and take the following action:

    If Dependent SSN is... Then...
    A] Found, Enter in the appropriate field.
    B] Not Found, Blank the field.

    Exception:

    See paragraph (4) and (5)

  4. Enter a value of 1 to 4 (number of allowable dependents) in Field 02DTR when a dependent is listed as Amish, Mennonite, or if Form 4029 is indicated.

  5. Search the return and attachments for an official document such as a birth certificate when there is any indication that the dependent Died, or was born and died in the tax year.

    Note:

    There must be an indication that the child was born alive; an exemption cannot be claimed for a stillborn child.

    If there is an indication of Died on the return:

    If... Then...
    A] The information clearly shows that the child was born within the tax period of the tax return and died in the same or consecutive tax period.

    Note:

    The word "Died" in column 2 of the dependent section of the tax return satisfies this requirement.

    1. Enter I in Field 01RPC.

    2. Enter the number of allowable dependents in Field 02DTR. (If 4 or more, enter 4 in Field 02DTR.)

    Note:

    If EIC is being claimed and EC 010 redisplays after an entry is made in Field 02DTR, enter C in the Clear Field.

    B] Data indicates child was not born and died within the tax period of the return,
    1. Treat as missing.

    2. Do not enter a value in Field 02DTR.

    C] Date of birth is not found, SSPND 211 to correspond for a copy of the child's birth certificate.
  6. Do not enter a value in the Field 02DTR when either of the following are noted (these are not valid reasons for a missing Dependent SSN):

    • "U.S. Adoption Pending"

    • "12/08"

  7. If a dependent SSN is missing and taxpayer notes "Pending Adoption" , and /or Form W-7A, Application for IRS Adoption TIN is attached or "Detached Form W-7" is edited in the margin then do the following:

    1. Research CC ATINQ to determine if an ATIN has been assigned (CC ATINQ with definer S followed by the SSN of the applicant and transmit).

    2. If Field STAT-CD> is "A" , then enter the ATIN present in Field ATIN> into the ERS SSN Field for the dependent the ATIN was issued.

    3. If Field STAT-CD> is "S" or "R" , SSPND 640 to Rejects and note on Form 4227 ATINQ STAT CD "S" or "R" .

    4. If Field STAT-CD> is "E" , "U" , or "H" , disallow the exemption for the dependent using Field 01EXC.

    5. If there is no response to CC ATINQ, when EC 010 displays, disallow exemption.

Field 01CT1, 01CT2, 01CT3, 01CT4, Dependent Child Tax and Other Dependent Credit Code, 1 position
  1. The Dependent Child Tax and Other Dependent Credit Code is used for TY98 and later. The taxpayer checks the applicable box in the dependents area to indicate a dependent is eligible for Child Tax Credit or Credit for Other Dependents. An entry for the first four dependents will be transcribed as follows in Field 01CT1/2/3/4.

    1. 0 (zero) - default value

    2. 1 - taxpayer checks Child Tax Credit

    3. 1 - taxpayer checks both boxes

    4. 2 - taxpayer checks Credit for Other Dependents (TY18 and later)

  2. These fields will be invalid if they contain values other than 0 (zero), 1 or 2.

  3. Verify that Fields 01CT1/2/3/4 are transcribed correctly.

Field 01RCD, Received Date
  1. The received date is the date that a return was received by the IRS.

    1. For TY18 and later, received date is edited by hand in dependent’s name area on Form 1040.

    2. For TY17 and prior, the received date is edited by hand to the right of line 6d Form 1040/A or in the center to the left of line 6 Form 1040EZ, or

    3. The received date is stamped near the center of Form 1040/A or to the left of line 6 on Form 1040EZ by a center, area office, territory office. The city and functional area within the site (e.g., CSCO, Exam, ICT, CIS, AM), should be in the date stamp too, or

    4. The received date is stamped in the lower left corner of the return by Lockbox.

    5. The received date must be entered in Field 01RCD in the format YYYYMMDD: YYYY = year, MM = calendar month, and DD = day of the month.

    Caution:

    The received date will not always appear in the location mentioned above. Accept the earliest received date as long as it is determined to be an IRS received date.

  2. Do not use a received date that has been circled. Another function has determined that the date is not valid. Follow the instructions in paragraph (10) below, for determining the received date if the other function has not provided a received date.

  3. The entry in Field 01RCD is invalid when it is:

    • not numeric or

    • blank or

    • not in the format YYYYMMDD or

    • earlier than 19630101 or

    • later than the current processing date

  4. Field 01RCD will also be invalid if the date is not within the following valid month and day ranges:

    Month Day
    01 01-31
    02 01-28 (29 in leap year)
    03 01-31
    04 01-30
    05 01-31
    06 01-30
    07 01-31
    08 01-31
    09 01-30
    10 01-31
    11 01-30
    12 01-31
  5. The received date cannot be any of the following:

    1. later than the date of the error record shown in the title line.

    2. earlier than the ending month and year of the tax period in Field 01TXP.

  6. Field 01RCD must hold a received date when the return is any of the following:

    • an amended return

    • a superseded return

    • a fiscal-year, prior-year, or short-year return

    • an early-filed decedent return

    • a delinquent return≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • a return processed after June 3rd or the Julian date in the DLN is 155 or later

  7. Correction Procedures - Delete data in Field 01RCD when the received date is not required.

  8. Consider the return filed on time and enter the return due date in Field 01RCD when all of the following conditions exist:

    1. The return was originally received on time.

    2. Code and Edit or ITIN corresponded with the taxpayer.

    3. No received date is stamped or edited on the return.

  9. Determine the received date by the following priorities when one is needed but is not stamped on the return or a valid handwritten received date is not present:

    1. Latest postmark on the envelope (post office mark) or the latest date from a designated private delivery service (PDS) mark. When the envelope or label is not attached, use the postmark date stamped or handwritten on the return to determine the received date.

      Note:

      See IRM 3.12.2.4.3.21.1 for determining a valid post office mark or IRM 3.12.2.4.3.21.2 for determining a valid PDS mark.

      Caution:

      Some stamps and labels show the date of sale. Do not confuse the date of sale with the date of use. Use only the cancellation date of the stamp or label for the latest postmark.

    2. Service Center Automated Mail Processing System (SCAMPS) digital dates.

    3. Latest date by the taxpayer's signature(s).

      Note:

      For prior-year returns use the signature date only if it is within the current year.

      Note:

      Do not use the date of the tax preparer's signature.

    4. Julian date in the DLN minus 10 days

      Note:

      Do not accept the date generated by the sending FAX machine on an original return.

  10. Review the return for the words "Sent Back for Signature" or a similar statement with a date present in the lower left corner of the return. These are returns that were originally received without a signature and were mailed back to the taxpayer from Receipt and Control. If a date and the phrase "Sent Back for Signature" are present, follow the instructions below for determining the received date:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

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

  11. Use the following table for processing exceptions to correcting the received date:

    If the return... Then...
    A] Is filed on time, Delete the data in Field 01RCD.
    B] Has multiple received dates, Enter the earliest date in Field 01RCD.

    Exception:

    Use the latest date when the earliest date is before the end of the tax period.

    C] Is a renumbered non-remittance, Enter the calendar date of the Julian date in the original DLN minus 10 days.
    D] Is a renumbered remittance, Enter the calendar date of the Julian date in the original DLN.
    E]≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Enter 20200415 in Field 01RCD.
  12. If a return was mailed to a state taxing agency:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the received date in Field 01RCD.

Post Office Marks
  1. Valid United States Postal Service (USPS), foreign country postmarks, USPS private meter marks, or private meter marks are:

    • Postage Validation Imprinter (PVI) labels displaying the USPS eagle

    • Killer bar strips or other cancellation marks with a date, city, and state

    • USPS Metered postmarks

    • Private Metered Marks (identified by the absence of "USPS" in the postmark).

Private Delivery Service (PDS) Marks
  1. Designated Private Delivery Services (PDS) are in the following list:

    1. United Parcel Service (UPS)
      UPS Next Day air Early AM
      • UPS Next Day Air
      • UPS Next Day Air Saver
      • UPS Second Day Air
      • UPS Second Day Air A.M.
      • UPS Worldwide Express
      • UPS Worldwide Express Plus

    2. Federal Express (Fed Ex)
      • FedEx First Overnight
      • FedEx Priority Overnight
      • FedEx Standard Overnight
      • FedEx 2 Day
      • FedEx International First
      • FedEx International Next Flight Out
      • FedEx International Priority
      • FedEx International Economy

      Note:

      Do not use "Fed Ex Powership 3" labels for determining the mail date.

    3. DHL Express:
      • DHL Express 9:00
      • DHL Express 10:30
      • DHL Express 12:00
      • DHL Express Worldwide
      • DHL Express Envelope
      • DHL Import Express 10:30
      • DHL Import Express 12:00
      • DHL Import Express Worldwide

  2. Do not use marks from a non-designated PDS to determine whether a return is timely filed. The timely mailing as timely filing rule applies only to the USPS and to designated PDSs.

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
  1. By law, a timely-mailed return is a timely-filed return. This applies to both USPS and designated PDS mail.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Field 01RPC Return Processing Code
  1. A Return Processing Code (RPC) is an alpha or numeric character entered by a Code and Edit examiner to alert the computer to a special condition or computation. The field is ten spaces long, and the number of RPCs may thus not exceed ten. These codes are used for center Processing and do not post to the Master File.

  2. RPCs are edited as follows:

    1. For TY18 and later, Form 1040: near the bottom-left margin of page 1 of the return

    2. For TY17 and prior, Form 1040: near the right of line 22.

    3. For TY17 and prior, Form 1040A: near the right of line 15.

    4. For TY17 and prior, Form 1040EZ: near the right of line 10.

  3. This field will be invalid as follows:

    1. Form 1040 (Doc Code 05, 06, 11, 12, 21, or 22) and RPC is other than A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P Q, R, S, T, U, V, W, Y, Z, 3, 4, 5, 6, 7, or 8.

    2. Form 1040A (Doc Code 09 or 10) and RPC is other than A, B, C, D, E, G, I, J, K, L, N, O, Q, R, V, Z, 1, 7, or 8.

    3. Form 1040EZ (Doc Code 07 or 08) and RPC is other than A, B, E, G, J, K, L, O, Q, R, V, or 8.

  4. Take the following actions to correct Field 01RPC:

    1. Correct coding and transcription errors.

    2. Determine and enter the correct RPC (if necessary). See Exhibit 3.12.2-3 for a list of explanations.

    3. Blank the field when the RPC is illegible and/or you cannot determine the correct RPC from the explanations in Exhibit 3.12.2-3.

  5. When a Form 1040A/EZ is coded with RPC S and there is an indication that the return should be converted to Form 1040, SSPND 610. RPC S is used for Form 1040 only. Otherwise, delete the code.

  6. Code & Edit edits RPC V on current year returns determined to be computer generated. A computer generated paper return is identified by a three-alpha character software code in the bottom margin of page 1 or 2, Form 1040.

01ACD Audit Codes
  1. Audit codes are used to alert Examination to certain conditions in the return. Audit codes are edited by Code and Edit in the bottom-right margin of page 1 of the return.

  2. The valid values for the field are listed below. Any other values are invalid.

    1. Form 1040 (Doc Code 05, 06, 11, 12, 21, 22): A, B, C, D, H, I, J, K, L, P, Q, R, S, T, U, V, W, X, Z, 2 and 3.

    2. Form 1040A (Doc Code 09, 10): B, D, H, K, L, P, R, U, V, X, 2 and 3.

    3. Form 1040EZ (Doc Code 07, 08): D, K, L, R, U and X.

  3. Compare the entry in the field with the code in the lower right margin of page 1 of the return. Correct coding and transcription errors.

  4. If the audit code is illegible or incorrect, refer to Exhibit 3.12.2-5, Audit Codes, to determine the correct audit code.

  5. If you cannot determine the correct audit code, delete the code from Field 01ACD.

Field 01PEF, Presidential Election Campaign Fund Code
  1. Presidential Election Campaign is found in the upper right corner of Form 1040 to the right of the address and apartment line (TY17 and prior, Form 1040/A/EZ to the right of City, State and ZIP Code line).

  2. Field 01PEF is a numeric one character in length field.

  3. An entry in Field 01PEF is invalid if other than blank, 1, or 2.

  4. Compare the field on the screen to the entry and correct screen display.

    1. Blank if no box marked.

    2. Enter "1" if one box is marked.

    3. Enter "2" if two boxes are marked.

      Note:

      For TY15 and prior, Field 01PEF should be blank.

Section 02, Form 3471 (Edit Sheet)

  1. Section 02 contains edited information from Form 3471, Edit Sheet, for certain Unallowable (UA) conditions, and several ERS input only fields.

Error Record Format Section 02

  1. Section 02 holds the following fields:

    Form 1040 Form 1040A Form 1040EZ Field Name Field Location (Form 3471)
    02RI 02RI 02RI Revalidation Indicator ERS input only
    02DTR 02DTR   Dependent TIN Requirement ERS input only
    02CD1 02CD1 02CD1 Unallowable Code 1 Line 1
    02AM1 02AM1 02AM1 Unallowable Amount 1 Line 1
    02CD2 02CD2   Unallowable Code 2 Line 2
    02AM2 02AM2   Unallowable Amount 2 Line 2
    02CD3 02CD3   Unallowable Code 3 Line 3
    02AM3 02AM3   Unallowable Amount 3 Line 3
    02AGI 02AGI 02AGI Unallowable AGI Near bottom of form, box labeled "AGI"
    02ITM     Unallowable Itemized Near bottom of form, box labeled "Itemized"
    02NI 02NI 02NI Unallowable Net Income Near bottom of form, box labeled "Net Income"
    02TXA 02TXA 02TXA Unallowable Tax Adjustment Near bottom of form, box labeled "TAX"
    02RPD 02RPD 02RPD Return Processed Date Line 4
    0206 0206 0206 Late Filing Code Line 6
    02PDP 02PDP 02PDP Pre-Determined Delinquency Penalty Line 7
    0208     Form 4563 Indicator (International) Line 8 (for AUSPC only)
    0211 0211 0211 ID Number Penalty Line 11
    02W2A 02W2A 02W2A ITIN Return
    First W-2 SSN
    ERS input only
    02W2B 02W2B 02W2B ITIN Return
    Second W-2 SSN
    ERS input only
    02ARC 02ARC 02ARC ACA Resolution Code ERS input only
  2. All fields are positive. Money amounts are entered in dollars only.

Field 02RI, Revalidation Indicator

  1. This field is for ERS input only and is used to retrieve information from the NAP file for NAP validation in ERS.

  2. The field is one space long.

  3. Valid values:

    • blank: the default value

    • R: signifying the request for NAP validation

Field 02DTR, Dependent TIN Requirement

  1. The field for the Dependent TIN Requirement is for ERS input only. It overrides the programming requirement for the presence of a dependent TIN. ERS examiners enter a value for the number of dependents, up to four, who do not have a TIN for an acceptable reason. See EC 010 for acceptable exceptions to the requirement for a valid dependent TIN.

  2. The field is one space long, and only numeric values are valid.

  3. Valid values for this field and their significance:

    • 0 - the default value

    • 1 - one dependent TIN missing for an acceptable reason

    • 2 - two dependent TINs missing for an acceptable reason

    • 3 - three dependent TINs missing for an acceptable reason

    • 4 - four dependent TINs missing for an acceptable reason

Unallowables

  1. There are certain conditions in a tax return that are unallowable by law and not merely questionable. These are identified by Unallowable (UA) Codes and edited by Code & Edit, as instructed in IRM 3.11.3, by Examination on Form 3471, Edit Sheet, or by ERS tax examiners, as instructed in IRM 3.12.3. An unallowable code allows the return to be processed as it was submitted. The fields for the amount of the unallowable display in dollars only.

    Note:

    Unallowable items should only be coded ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. These unallowable fields are edited by Code & Edit on Form 3471 for transcription:

    • Field 02CD1/02AM1

    • Field 02CD2/02AM2

    • Field 02CD3/02AM3

  3. These unallowable UA fields are for ERS input only:

    • Field 02AGI

    • Field 02ITM

    • Field 02NI

    • Field 02TXA

    • Field 94UTV

  4. Refer to the Unallowable Codes, Exhibit 3.12.2-6, for a list and explanation of the unallowable codes.

  5. Corrections are not necessary unless the record contains EC 370, 702, 704, 706, 708, 712, 714, or 718.

  6. Enter and correct unallowable codes according to the instructions below.

    1. Enter all codes as they are shown on Form 3471 or the return.

    2. If more than three unallowable items are in a return, enter Unallowable Code 98 as the third unallowable code, in Field 02CD3, and leave Field 02AM3 blank. Explain the additional codes and amounts in "Processing memo" in Form 3471.

  7. Before correcting an unallowable code, determine if the unallowable amount is more than the tolerance, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Use the following table to correct the unallowable code:

    If the amount is... And the UA is... Then...
    A] More than the tolerance,  
    1. GTSEC 02.

    2. Enter the UA codes. See Exhibit 3.12.2-6.

    3. Enter the UA amount.

    B] Less than the tolerance, In a field that is creating an ERS error condition, Move the amount to a catch-all field: for example, move Field 0716 of Schedule A. See the note below.

    Note:

    Do not adjust the return. Do not leave a working trail for the amount moved.

  8. Refer to EC 260 for conditions that should be coded with CCC Y.

Field 02RPD, Return Processed Date

  1. The Return Processed Date (RPD) is located on line 4 Form 3471 or stamped on the correspondence reply. The return processed date is sometimes called the correspondence received date.

  2. Correct coding and transcriptions errors.

  3. Correct invalid format to the date YYYYMMDD. Y=year, M=month, and D=day.

  4. The entry in Field 02RPD is invalid if any of the following conditions are present:

    • The day of the month (DD) exceeds the number of days for the transcribed calendar month (MM).

    • The first position of the field is blank and the rest of the field is filled.

    • The entry has fewer than eight characters.

    • The entry is not exclusively numeric.

    • The entry is later than the current date.

  5. When a return has been held in suspense and a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, enter the return processed date in Field 02RPD.

  6. Don’t enter a return processed date when:

    • a complete reply is received before the due date of the return, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or

    • the correspondence was issued in error.

  7. Austin only - If the return has an ITIN (9XX-50-XXXX through 9XX-65-XXXX, 9XX-70-XXXX through 9XX-88-XXXX, 9XX-90-XXXX through 9XX-92-XXXX, 9XX-94-XXXX through 9XX-99-XXXX) written in red ink and "W-7" is stamped in the bottom left hand corner of the return, resolve the error according to these instructions.

    1. If the received date is equal to the return processed date, ensure the correct received date is input. Refer to IRM 3.12.2.4.3.21.

    2. If EC 058 redisplays, delete the entry in Field 02RPD.

Field 0206, Late-Filing Code

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for receiving certain tax returns. Code and Edit will edit the Late Filing Code 1 when the received date on ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the taxpayer has computed a delinquency penalty and/or interest. Refer to EC 062.

  2. The field will be invalid when other than blank or 1.

  3. Correct coding and transcription errors and use the following table to correct the field error:

    If the return is... And... Then...
    A] Full Paid, Any of the following is present:
    1. Pre-computed delinquency,

    2. Failure to Pay Penalty,

    3. Interest is entered on the return,

    1. Enter 1 in Field 0206.

    2. Enter 20200415 in Field 01RCD.

    B] Partial Paid, An amount is indicated for delinquency (Failure to File) penalty, Enter 1 in Field 0206.

Field 02PDP, Pre-Determined Delinquency Penalty

  1. Code and Edit will edit the amount on the Edit Sheet when there is a notation on the return that indicates this penalty. Refer to EC 064.

  2. This field will be invalid if other than blank or all numerics.

  3. Correct any coding or transcription errors.

Field 0208, Form 4563 Indicator (International)

  1. This field is used by AUSPC only.

  2. Delete entry if present in this field.

Field 0211, Identification Number Penalty

  1. Identification Number Penalty Field has a maximum of 2 characters and will be invalid if other than two zeroes (00) or 50.

  2. Code and Edit will edit 50 when there is a notation on the return that this penalty is to be assessed and an amount is present. Enter the amount in Field 0211 as two digits (e.g., $50.00 will be entered as 50).

    Note:

    Examination or Collection will indicate when this penalty is to be assessed.

  3. Correct any editing or transcription errors.

Fields 02W2A and 02W2B, ITIN Return First/Second W-2 SSN

  1. These fields will be invalid if other than blank or numeric.

  2. These fields are ERS input only.

  3. If Field 02W2A or 02W2B is equal to the Primary or Secondary SSN, delete the entry.

Field 02ARC, Affordable Care Act (ACA) Resolution Codes

  1. The ACA Resolution Code is an alphanumeric field and can have up to 10 codes. The code should only be input when instructed in the error codes listed in the table below when accepting the taxpayer entry.

    ACA Resolution Codes Descriptions
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1 Bypasses AVS error checks for EC 191
    2 Bypasses AVS error checks for EC 192
    3 Bypasses AVS error checks for EC 195
    4 Bypasses AVS error checks for EC 197
    5 Bypasses AVS error checks for EC 198
    6 Bypasses AVS error checks for EC 199
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Field 02NC> Non-Compute Code

  1. The Non-Compute Code 2 is computer generated when the return is identified as a Non-Compute by the computer. Taxpayers who want the IRS to compute the tax will only complete the following lines:

    1. TY19 Form 1040 - Data through line 11b, plus any applicable lines from Schedule 2 and 3.

    2. TY18 Form 1040 - Data through line 10, plus any applicable lines from Schedule 3, 4 and 5

    3. TY17 and prior Form 1040 - Data through line 43, plus any applicable lines from line 48 through 55 and lines 64 through 74.

    4. TY17 and prior Form 1040A - Data through line 27, plus any applicable lines 31 through 36 and lines 40 through 46.

  2. The taxpayers must not compute the Tax Liability, Balance Due/Refund, or have certain attached schedules for IRS to compute their tax.

    Exception:

    Section 01-05, 08, 16, 19, 21, 22, 23, 27, 29, 30, 36, 37, 43, 44, 45, 50, 51, and 56 may be present.

  3. Field 02NC> will display with a 2 (identifying the return as a Non-Compute), for TY18 and later, when all of the following exist:

    1. Adjusted Gross Income is present and Total Tax IMF, Balance Due/Refund, Estimated Tax Payments, Estimated Tax Penalty and Remittance Amount are not present.

    2. Computer Condition Code B is not present.

    3. Taxpayer does not exceed tax table limitations for income.

    4. Only Sections 01-05, 08, 16, 19, 21, 22, 23, 27, 29, 30, 36, 37, 43, 44, 45, 50, 51, and 56 are present.

    5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. Error Codes in the 500 and 600 series will also be generated on all Non-Compute returns.

  5. A return processed as a Non-Compute return generates a CP 51 notice to the taxpayer. The CP 51 informs the taxpayer that the IRS figured their tax for them.

  6. Correction Procedures - Determine from the return if the Tax and/or Balance Due/Refund has been computed to zero by the taxpayer, or if the taxpayer is asking IRS to figure the tax. A dash (-), a 0 (zero), or "none" written on any of the lines is an indication the taxpayer computed their own return.

    1. When you can determine that the taxpayer has computed their return, enter B in Field 01CCC.

      Note:

      CCC B prevents the return from being identified as a Non-Compute. This practice is recommended because of the current amount of unnecessary CP 51 notices that are generated.

    2. If the taxpayer has computed the tax to zero, has entered withholding and has no subsequent entries (i.e., taxpayer is not asking IRS to figure EIC) and does not have an entry on line 18, Form 1040 (TY17 line 74, Form 1040; line 46, Form 1040A), enter the withholding amount in Field 03BDR and don’t enter CCC B.

  7. Correct all field errors when the return is identified as a true Non-Compute and the taxpayer has done all the following:

    • Completed all applicable lines through Taxable Income.

    • Entered any withholding.

    • Entered any applicable lines thereafter (except the total lines).

    • Wrote "CFE" , if applicable, on the dotted line next to the line for Credit for the Elderly or the Disabled and attached the schedule with the appropriate lines completed.

    • Wrote "EIC" , if applicable, to the left of the Earned Income Credit line and attached the schedule (if necessary) with the appropriate lines completed.

  8. Assign TPNC 218 when a return appears to be a Non-Compute, but does not meet the criteria (e.g., "prior-year return" , Schedule A present, Schedule C present, etc.). Field 02NC> will be blank.

  9. Verify the coding and transcription on all the fields in the following table. Take the appropriate action listed in the table below, when necessary, before transmitting the record:

    Verify Field... And... Then...
    01FSC The taxpayer failed to check or checked multiple boxes for the FS, SSPND 211
    01EXC You are unable to arrive at the taxpayer's total for exemptions, SSPND 211
    01ABI You are unable to arrive at the taxpayer's total for Age/Blind deduction(s), Refer to EC 250 and 252.
    01DSI You are unable to determine if the taxpayer is limiting the Standard Deduction or Exemption amount, Refer to EC 250 and 252.
    Section 03 Verification of wages, from Forms W-2, shows the amount of wages is greater than the amount reported on the return by $10 or more, Increase the wages amount. (Continue processing if amount is less than what is reported on the return.)
    Section 03 The taxpayer used Social Security or Medicare wages instead of wages in box 1 of Form W-2, Change the amount to reflect the box 1 wages.
    Section 03
    1. EIC is claimed based solely on wages that are not supported by a Form W-2 (or similar Form W-2 document), or

    2. HSH is not noted on the wage line,

    1. Research CC IRPTR, if available.

    2. SSPND 211 for documentation if income is not found on IRPTR.

    Section 03 Gross social security is being claimed,
    1. Research CC IRPTR, if available.

    2. Verify and correct the amount, if applicable.

    Field 03WH (Form 1040), or Field 0340 (Form 1040A), or Field 0307 (Form 1040EZ),
    1. Withholding is claimed,

    2. Supported by only a substitute, typed or handwritten Form W-2

    3. The computer computes a refund,

    Enter 8 in Field 01CCC.

    Note:

    Always verify the Withholding amount from Forms W-2 and ensure that the amount was transcribed correctly before transmitting the error record.

  10. Refer to EC 260 for information on joint Non-Compute returns. Computer Condition Code "Y" will be assigned when both of the following are present:

    1. The separate taxable incomes of the taxpayers are shown above the words "Adjusted Gross Income" , on Form 1040 (to the left of line 27 on Form 1040A or to the left of line 6 on Form 1040EZ).

    2. There are no exemptions in positions 3 through 8, or the taxpayer has indicated the allocation of the exemptions to the spouse.

Section 03, Simplified Tax Return

  1. Section 03 includes information transcribed from the simplified tax return, following the layout of TY19 Form 1040 (corresponding fields on Form 1040A/EZ. For prior year Form 1040A and 1040EZ returns, some fields will display in a different order than on the original return.

Error Record Format Section 03

  1. Form 1040 Section 03 consists of the following fields:

    Form 1040 Field Name Form 1040 Field Location
    03WG Wages Line 1
    03TEI Tax-Exempt Interest Line 2a
    03INT Taxable Interest Line 2b
    03QD Qualified Dividends Line 3a
    03DIV Ordinary Dividends Line 3b
    03GIR Gross IRA Distributions Line 4a
    03TIR Taxable IRA Distributions Line 4b
    03GPA Gross Pension and Annuity Line 4c
    03TPA Taxable Pension and Annuity Line 4d
    03GSS Gross Social Security Line 5a
    03TSS Taxable Social Security Line 5b
    03CGL Schedule D Profit/Loss Line 6
    03ADD Additional Income Line 7a
    03TOT Total Income Line 7b
    03TAJ Total Adjustments Line 8a
    03AGI Adjusted Gross Income Line 8b
    03QBI Qualified Business Income Deduction Line 10
    03INC Taxable Income Line 11b
    03TTX Tentative Tax Line 12a
    03AF Additional Forms 8814 attached ERS input only
    03AT Additional Forms 8814 Tax ERS input only
    03HCR Form 8885 Health Coverage Recapture Amount ERS input only
    03COD Child Tax or Other Dependent Credit Line 13a
    03NRC Total Statutory Credit Line 13b
    03OTX Other Taxes Line 15
    03TAX Total Tax Line 16
    03WH Withholding Line 17
    03EIC Earned Income Credit Line 18a
    03NCP EIC Nontaxable Combat Pay Amount Edited to the left of line 18a
    03ACT Additional Child Tax Credit Line 18b
    03AOC Refundable Education Credit Line 18c
    03RCR Refundable Credits Line 18e
    03PAY Total Payments Line 19
    03BDR Balance Due Refund Line 21a or 23
    03CEL Credit Elect Line 22
    03ETP Estimated Tax Penalty Line 24
    03AI Third Party Designee Authorization Indicator Third Party Designee Checkbox, page 2
    03TPN Third Party Designee Name Third Party Designee name, page 2
    03TPI Third Party Designee ID Number Third Party Designee number, page 2
    03EMW E-File Mandate Waiver Code Edited at lower right margin of page 2
    03PC Preparer Code Edited to right of Firm’s EIN
    03PT Preparer TIN PTIN in Paid Preparer area, page 2
    03PE Preparer EIN Firm’s EIN in Paid Preparer area, page 2
    03PTN Preparer Telephone Number Preparer Telephone Number, page 2
  2. TY17 Form 1040A and 1040EZ Section 03 consists of the following fields:

    Form 1040A Form 1040EZ Field Name Field Location
    0307 0301 Wages Line 7, Form 1040A
    Line 1, Form 1040EZ
    0308A 0302 Taxable Interest Income Line 8a, Form 1040A
    Line 2, Form 1040EZ
    0308B 03TEI Tax-Exempt Interest Line 8b, Form 1040A
    ERS input only, Form 1040EZ, dotted portion to the left of line 2
    0309A   Ordinary Dividends Line 9a, Form 1040A
    0309B   Qualified Dividends Line 9b Form 1040A
    0310   Total Capital Gain Distributions Line 10, Form 1040A
    0311A   Total IRA Distribution Line 11a, Form 1040A
    0311B   Taxable IRA Distribution Line 11b, Form 1040A
    0312A 03GPA Gross Pension and Annuity Line 12a, Form 1040A
    ERS input only, Form 1040EZ
    0312B 03TPA Taxable Pension and Annuity Line 12b, Form 1040A
    ERS input only, Form 1040EZ
    0314A   Gross Social Security Line 14a, Form 1040A
    0314B   Taxable Social Security Line 14b, Form 1040A
    0315 03TOT Total Income Line 15, Form 1040A
    Line 4, Form 1040EZ)
    0320   Total Adjustments Line 20, Form 1040A
    0321 0304 Adjusted Gross Income Line 21, Form 1040A
    Line 4, Form 1040EZ
    03SD3   MFS Itemized Deduction Indicator ERS input only
    0327 0306 Taxable Income Amount Line 27, Form 1040A
    Line 6, Form 1040EZ
    0328 0310 Tentative Tax Line 28, Form 1040A
    Line 10, Form 1040EZ
    0335   Child Tax Credit Line 35, Form 1040A
    0336   Total Statutory Credits Line 36, Form 1040A
    0339 0312 Total Tax Line 39, Form 1040A
    0340 0307 Withholding Line 40, Form 1040A
    Line 7, Form 1040EZ
    0342A 0308A Earned Income Credit Line 42a, Form 1040A
    Line 8a, Form 1040EZ
    0342B 0308B EIC Nontaxable Combat Pay Amount Line 42b, Form 1040A
    Line 8b, Form 1040EZ
    0343   Additional Child Tax Credit Line 43, Form 1040A
    0344   Refundable Education Credit Line 44, Form 1040A
    0346 0309 Total Payments Line 46, Form 1040A
    Line 9, Form 1040EZ
    03BDR 03BDR Balance Due Refund Line 48a or 50, Form 1040A
    Line 13a or 14, Form 1040EZ
    03CEL   Credit Elect Line 49, Form 1040A
    03ETP   Pre-determined Estimated Tax Penalty Line 51, Form 1040A
    03AI 03AI Third Party Designee Authorization Indicator Third Party checkbox, page 2, Form 1040A
    page 1, Form 1040EZ
    03TPN 03TPN Third Party Designee Name Third Party name, page 2, Form 1040A
    page 1, Form 1040EZ
    03TPI 03TPI Third Party Designee ID Number Third Party designee number, page 2, Form 1040A
    page 1, Form 1040EZ
    03EMW 03EMW E-File Mandate Waiver Code Edited to the right of daytime phone number
    03PT 03PT Preparer TIN PTIN in Paid Preparer area
    03PE 03PE Preparer EIN Firm’s EIN in Paid Preparer area
    03PC 03PC Preparer Code Edited to the right of the Firm’s EIN
    03PTN 03PTN Preparer Telephone Number Phone Number in Paid Preparer area, page 2, Form 1040A
    page 1, Form 1040EZ

Invalid Conditions

  1. Fields in Section 03 are invalid if not all numeric.

Correction Procedures

  1. Correction procedures for Section 03 fields follow.

Fields 03WG, 0307, and 0301, Wages
  1. Wages are transcribed in Field 03WG from line 1, Form 1040 (TY17, located on line 7).

  2. Form 1040A, wages are transcribed in Field 0307 from line 7, or Form 1040EZ, in Field 0301 from line 1.

  3. Verify the wages with CC IRPTR if the information returns are available as instructed by the error code. SSPND 211 for Form W-2 when the taxpayer does not provide at least one Form W-2 or a similar statement of earnings as instructed by the error code. Refer to EC 118/218/337/338.

  4. If the taxpayer reports earnings from household employment "HSH" on the wages line, enter E in Field 01SPC.

    Note:

    Household employees may not have Forms W-2 to support their entry for wages. They are instructed to write "HSH" and the amount of earnings to the left of the entry for wages. Consider this the equivalent of a Form W-2.

Fields 03TEI and 0308B, Tax-Exempt Interest
  1. Tax-exempt interest is transcribed in Field 03TEI from line 2a, Form 1040 (TY17, located on line 8b).

  2. Tax-exempt interest is transcribed in Field 0308B from line 8b, Form 1040A, and on Form 1040EZ, it is edited by C&E on the dotted portion to the left of line 2 and transcribed in Field 03TEI.

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. Refer to Error Code 218.

Fields 03INT, 0308A, and 0302, Taxable Interest
  1. Taxable interest is transcribed in Field 03INT from line 2b, Form 1040 (TY17, located on line 8a).

  2. Taxable interest is transcribed from line 8a, Form 1040A in Field 0308A, or line 2, Form 1040EZ in Field 0302.

  3. TY17 and prior, when a negative amount is claimed as taxable interest on Form 1040EZ, SSPND 610 to convert to Form 1040. Beginning in TY97, negative taxable interest amounts stemming from inflation-indexed bonds may be claimed on line 8a, Form 1040/A.

  4. Refer to EC 218.

Fields 03QD and 0309B, Qualified Dividends
  1. Qualified dividends are transcribed in Field 03QD from line 3a, Form 1040 (TY17, located on line 9b).

  2. Form 1040A, qualified dividends are transcribed in Field 0309B from line 9b.

  3. Qualified dividends and distributions are reported to the taxpayer on Form 1099-DIV, box 1b. Taxpayers are not required to attach Form 1099-DIV to their return.

  4. Refer to EC 218.

Fields 03DIV and 0309A, Ordinary Dividends
  1. Ordinary dividends are transcribed in Field 03DIV from line 3b, Form 1040 (TY17, located on line 9a).

  2. Form 1040A, ordinary dividends are transcribed in Field 0309A from line 9a.

  3. Ordinary dividends and distributions are reported to the taxpayer on Form 1099-DIV, box 1a. Taxpayers are not required to attach Form 1099-DIV to their return.

  4. Refer to EC 218.

Field 0310, Capital Gain Distributions (Form 1040A only)
  1. Form 1040A, capital gain distributions amount is transcribed from line 10.

  2. Refer to EC 218.

Fields 03GIR and 0311A, Gross IRA Distributions
  1. Gross IRA distributions are transcribed in Field 03GIR from line 4a of Form 1040 (TY17, located on line 15a).

  2. Form 1040A, gross IRA distributions are transcribed in Field 0311A from line 11a.

  3. Refer to EC 218.

Fields 03TIR and 0311B, Taxable IRA Distributions
  1. Taxable IRA distributions are transcribed in Field 03TIR from line 4b of Form 1040 (TY17, located on line 15b).

  2. Form 1040A, taxable IRA distributions are transcribed in Field 0311B from line 11b.

  3. Refer to EC 218.

Fields 03GPA and 0312A, Gross Pensions and Annuities
  1. Gross pensions and annuities are transcribed in Field 03GPA from line 4c, Form 1040 (TY17, located on line 16a). TY18, gross IRAs, pensions, and annuities are located on line 4a, Form 1040.

  2. Form 1040A, gross pensions and annuities are transcribed in Field 0312A from line 12a.

  3. Form 1040EZ, Field 03GPA is ERS input only on Form 1040EZ.

  4. Refer to EC 218.

Fields 03TPA and 0312B, Taxable Pensions and Annuities
  1. Taxable pensions and annuities are transcribed in Field 03TPA from line 4d, Form 1040 (TY17, located on line 16b). TY18, taxable IRAs, pensions, and annuities are located on line 4b, Form 1040.

  2. Form 1040A, taxable pensions and annuities are transcribed in Field 0312B from line 12b.

  3. Form 1040EZ, Field 03TPA is ERS input only to enter pension and annuities amount included in income.

  4. Refer to EC 218.

Fields 03GSS and 0314A, Gross Social Security Benefits
  1. Gross social security benefits are transcribed in Field 03GSS from line 5a, Form 1040 (TY17, located on line 20a).

  2. Form 1040A, gross social security benefits are transcribed in Field 0314A from line 14a.

  3. Refer to EC 214.

Fields 03TSS and 0314B, Taxable Social Security Benefits
  1. Taxable social security benefits are transcribed in Field 03TSS from line 5b, Form 1040 (TY17, located on line 20b).

  2. Form 1040A, taxable social security benefits are transcribed in Field 0314B from line 14b.

  3. For TY94 and later, social security can be taxed up to 85%.

  4. For TY93 and prior, up to 50% was taxable.

  5. Refer to EC 214.

Field 03CGL, Schedule D Profit or Loss
  1. Capital gain or loss is transcribed in Field 03CGL from line 6, Form 1040 (TY18, located on Schedule 1, line 13; TY17, Form 1040, line 13).

  2. Refer to EC 204.

Field 03ADD, Additional Income
  1. Field 03ADD, Additional Income, is transcribed from Form 1040, line 7a (TY18, located on Schedule 1, line 22).

  2. Refer to EC 218.

Fields 03TOT and 0315, Total Income
  1. Total income is transcribed in Field 03TOT from line 7b, Form 1040. (TY18, located on line 6, Form 1040; TY17, line 22).

  2. Form 1040A, total income is transcribed in Field 0315 from line 15.

  3. Form 1040EZ, total income is transcribed in Field 03TOT from line 4.

  4. Refer to EC 218.

Fields 03TAJ and 0320, Total Adjustments
  1. Total adjustments amount is transcribed in Field 03TAJ from line 8a, Form 1040 (TY18, located on Schedule 1, line 36; TY17, Form 1040, line 36).

  2. Form 1040A, total adjustments amount is transcribed in Field 0320 from line 20.

Fields 03AGI, 0321, and 0304, Adjusted Gross Income
  1. Adjusted gross income (AGI) is transcribed from line 8b, Form 1040, in Field 03AGI (TY18, located on line 7, Form 1040; TY17, line 37).

  2. Form 1040A, AGI is transcribed in Field 0321 from line 21.

  3. Form 1040EZ, AGI is transcribed in Field 0304 from line 4.

  4. Refer to EC 230.

Field 03SD3, MFS Itemized Deduction Indicator (Form 1040A only)
  1. Form 1040A, Field 03SD3 is for ERS input only, based on the checkbox on line 23b, Form 1040A: "If you are married filing separately and your spouse itemizes deductions, check here."

  2. If the FSC is 3 and the taxpayer has checked box 23b, enter 1 in Field 03SD3 to set the standard deduction computer to zero.

  3. The entry in Field 03SD3 is invalid if other than 0 (zero) or 1. If the box is not checked on Form 1040A, line 23b, enter 0 in Field 03SD3.

  4. Refer to EC 252.

Field 03QBI, Qualified Business Income Deduction
  1. Qualified Business Income Deduction (QBID) is transcribed in Field 03QBI from Form 1040, line 10 (TY18, located on line 9).

  2. Field 03QBI is valid for TY18 and later only.

  3. Refer to EC 248 and 249.

Fields 03INC, 0327, and 0306, Taxable Income Amount
  1. Taxable income is transcribed in Field 03INC from Form 1040, line 11b (TY18, located on line 10; TY17, line 43).

  2. Form 1040A, taxable income is transcribed in Field 0327 from line 27.

  3. Form 1040EZ, taxable income is transcribed in Field 0306 from line 6.

  4. The transcribed taxable income field has a computer-generated underprint. Refer to EC 250, 252, and 265.

Fields 03TTX, 0328, and 0310, Tentative Tax
  1. Tentative tax is transcribed in Field 03TTX from Form 1040, line 12a (TY18, located on line 11a; TY17, line 44).

  2. Form 1040A, tentative tax is transcribed in Field 0328 from line 28.

  3. Form 1040EZ, tentative tax is transcribed in Field 0310 from line 10.

  4. Refer to EC 265.

Field 03AF, Additional Forms 8814 Attached
  1. Field 03AF, Additional Forms 8814 Attached, is for ERS input only. This one-position field is valid for Form 1040 only, holds only a positive number and is for use only when more than three Forms 8814 are present. The largest allowable number in the field is 9.

    • Three Forms 8814 may be transcribed with a return in Sections 40, 41, and 42.

    • Field 03AF holds the number of Forms 8814 for which there is no transcribed section. For instance, if four Forms 8814 are attached, and the first three are transcribed as Section 40, 41, and 42, enter the number 1 in Field 03AF. If there are five Forms 8814, enter the number 2 in Field 03AF.

  2. Use Command Code GTSEC to verify that the first three Forms 8814 are transcribed in Section 40, 41, and 42. Subtract three from the number of Forms 8814 and enter the result in Field 03AF. If twelve or more Forms 8814 are present, enter the number 9 in Field 03AF.

  3. Refer to EC 265.

Field 03AT, Additional Forms 8814 Tax
  1. Field 03AT, Additional Forms 8814 Tax, is for ERS input only on Form 1040.

  2. Enter the additional tax amount in Field 03AT from the Form(s) 8814 not transcribed in Sections 40, 41, and 42.

  3. Refer to EC 265.

Field 03HCR, Form 8885 Health Coverage Recapture Amount
  1. Field 03HCR, Form 8885 Health Coverage Recapture Amount, is for ERS input only on Form 1040.

  2. For repayment of excess advance payment of health coverage tax credit, taxpayers are instructed to check box 3 on Form 1040, line 12a (TY18, box 3 on line 11a; TY17, box c on line 44), and write "HCTC" with an amount next to the line. Enter the amount identified as "HCTC" in Field 03HCR.

  3. Refer to EC 265.

Field 03COD, Child Tax and Other Dependent Credit, and Field 0335, Child Tax Credit
  1. The amount claimed for Child Tax Credit (CTC) and Credit for Other Dependents (ODC) is transcribed in Field 03COD from Form 1040, line 13a (TY18, located on line 12a; TY17, CTC amount is located on line 52).

  2. Form 1040A, CTC is transcribed in Field 0335 from line 35.

  3. CTC is valid for TY98 and later. ODC is valid for TY18 and later.

  4. Refer to EC 287, 289, and 290.

Fields 03NRC and 0336, Total Statutory Credits
  1. Total statutory credits are transcribed in Field 03NRC from Form 1040, line 13b (TY18, located on line 12; TY17, line 55).

  2. Form 1040A, total statutory credits are transcribed in Field 0336 from line 36.

  3. Refer to EC 310.

Field 03OTX, Total Other Taxes
  1. Total other taxes amount is transcribed in Field 03OTX from Form 1040, line 15 (TY18, located on line 14) and applies to TY18 and later returns only.

  2. Refer to EC 333.

Fields 03TAX, 0339, and 0312, Total Tax
  1. Total tax is transcribed in Field 03TAX from Form 1040, line 16 (TY18, located on line 15; TY17, line 63).

  2. Form 1040A, total tax is transcribed in Field 0339 from line 39.

  3. Form 1040EZ, total tax is transcribed in Field 0312 from line 12.

Field 03WH, 0340, and 0307, Withholding
  1. Withholding is transcribed in Field 03WH from Form 1040, line 17 (TY18, located on line 16; TY17, line 64).

  2. Form 1040A, withholding is transcribed in Field 0340 from line 40.

  3. Form 1040EZ, withholding is transcribed in Field 0307 from line 7.

  4. Enter the amount from attachments, if applicable, when withholding is blank, dash (-), or 0 (zero).

  5. Refer to EC 118 and 355.

Fields 03EIC, 0342A, and 0308A, Earned Income Credit (EIC)
  1. Earned Income Credit (EIC) is transcribed in Field 03EIC from Form 1040, line 18a (TY18, located on line 17a; TY17, line 66a).

  2. Form 1040A, EIC is transcribed in Field 0342A from line 42a

  3. Form 1040EZ, EIC is transcribed in Field 0308A from line 8a.

  4. Refer to EC 336, 337, and 338.

  5. When taxpayers indicate they want the IRS to compute their EIC without qualified children (i.e., EIC written near the EIC line and no Schedule EIC attached), Code and Edit will edit $888.00 on the EIC line to generate ERS correction. Refer to EC 338.

Fields 03NCP, 0342B, and 0308B, EIC Nontaxable Combat Pay
  1. EIC nontaxable combat pay is transcribed in Field 03NCP from taxpayer’s notation to the left of Form 1040, line 18a (TY18, to the left of line 17; TY17, line 66b).

  2. Form 1040A, EIC nontaxable combat pay is transcribed in Field 0342B from line 42b

  3. Form 1040EZ, EIC nontaxable combat pay is transcribed in Field 0308B from line 8b.

Fields 03ACT and 0343, Additional Child Tax Credit
  1. Additional Child Tax Credit (ACTC) is transcribed in Field 03ACT from Form 1040, line 18b (TY18, located on line 17b; TY17, line 67).

  2. Form 1040A, ACTC is transcribed in Field 0343 from line 43.

  3. This field is applicable for TY98 and later.

  4. Refer to EC 340.

Fields 03AOC and 0344, Form 8863 Refundable Education Credit
  1. Refundable education credit or American Opportunity Credit (AOC) is transcribed in Field 03AOC from Form 1040, line 18c (TY18, located on line 17c; TY17, line 68).

  2. Form 1040A, refundable education credit is transcribed in Field 0344 from line 44.

  3. Refundable Education Credit is valid for TY09 and later.

  4. Refer to EC 342.

Field 03RCR, Refundable Credits
  1. Refundable credits is transcribed in Field 03RCR from Form 1040, line 18e (TY18, located on line 17), and applies to TY18 and later returns.

  2. Refer to EC 354.

Fields 03PAY, 0346, and 0309, Total Payments
  1. Total payments is transcribed in Field 03PAY from Form 1040, line 19 (TY18, located on line 18; TY17, line 74).

  2. Form 1040A, total payments is transcribed in Field 0346 from line 46.

  3. Form 1040EZ, total payments is transcribed in Field 0309 from line 9.

  4. Refer to EC 355.

Field 03BDR, Balance Due/Refund
  1. Field 03BDR can be either positive or negative depending on the taxpayer’s entry. This field will be:

    1. Negative (meaning a refund due to taxpayer) amount if transcribed from Form 1040, line 21a (TY18, located on line 20a; TY17, line 76a); Form 1040A, line 48a; Form 1040EZ, line 13a.

    2. Positive (meaning amount due to IRS) amount if transcribed from Form 1040, line 23 (TY18, located on line 22; TY17, line 78); Form 1040A, line 50; Form 1040EZ, line 14.

    Note:

    ISRP will enter the amount as a refund if the only entry by the taxpayer is on the Overpaid line, Form 1040, line 20 (TY18, line 19; TY17, line 75); Form 1040A, line 47.

  2. Refer to EC 360.

Field 03CEL, Credit Elect
  1. Credit Elect or estimated tax election is transcribed from line 22, Form 1040 (TY18, located on line 21; TY17, line 77); Form 1040A, line 49.

  2. Field 03CEL is used to indicate the amount of overpayment the taxpayer wants applied to the next year’s tax liability.

  3. Refer to EC 360.

Field 03ETP, Pre-Determined Estimated Tax Penalty
  1. Estimated tax penalty is transcribed from line 24, Form 1040 (TY18, located on line 23; TY17, line 79); Form 1040A, line 51.

  2. Forms 2210 and 2210-F are worksheets used by the taxpayer to compute the Underpayment of Estimated Tax Penalty. Form 2210 is used by most filers; Form 2210-F is used by farmers and fishermen.

  3. Refer to EC 356 and 360.

Field 03AI, Third Party Designee Authorization Indicator
  1. Field 03AI is transcribed from the third party designee area above the signature area on Form 1040, page 2 (TY18, located on Schedule 6); Form 1040A, page 2; Form 1040EZ, page 1.

  2. Use the following procedures to correct Field 03AI:

    1. If taxpayer checks the Yes box, enter 1.

    2. If taxpayer checks the No box, enter 0 (zero).

    3. If taxpayer checks both boxes or does not check a box, enter 0 (zero).

Field 03TPN, Third Party Designee Name
  1. Field 03TPN is transcribed from the third party designee area above the signature area on Form 1040, page 2 (TY18, located on Schedule 6); Form 1040A, page 2; Form 1040EZ, page 1.

  2. The taxpayer is instructed to enter the name of the person designated to discuss their tax return. This field is 20 characters in length.

Field 03TPI, Third Party Designee Identification Number
  1. Field 03TPI is transcribed from the third party designee area above the signature area on Form 1040, page 2 (TY18, located on Schedule 6); Form 1040A, page 2; Form 1040EZ, page 1.

  2. The taxpayer is instructed to enter five digits that the designee chooses as a personal identification number.

Field 03EMW, E-File Mandate Waiver Indicator
  1. Paid preparers are required to e-file the tax returns they prepare. Exceptions to that general rule are listed on Form 8948, Preparer Explanation for Not Filing Electronically. When paid preparers submit a paper return, they must include Form 8948 and indicate the exception.

  2. Code and Edit will edit 1 through 6 in the lower-right margin of Form 1040, page 2 (TY17, Form 1040A, page 2; Form 1040EZ, page 1) from the exception box checked by the preparer on Form 8948.

  3. Field 03EMW is invalid if other than blank, zero, or 1 through 6. Code 1 indicates box 1 is marked, code 2 is box 2, code 3 is box 3, code 4 is box 4, code 5 is box 5, and code 6 is box 6a-c.

  4. Compare the field on the screen with the box checked on Form 8948. If edited or transcribed incorrectly, correct the screen display.

  5. If multiple boxes are checked on Form 8948, enter the indicator according to this priority: 6a, 6b, 3, 2, 1, 4, 5, or 6c.

Field 03PT, Preparer TIN
  1. The Preparer TIN (PTIN) Field is transcribed from the paid preparer's area at the bottom of page 2, Form 1040 (TY18, located on page 1); Form 1040A, page 2; Form 1040EZ, page 1.

  2. Field 03PT is a nine-character alphanumeric code. The first character is P or S. The remaining eight characters are numbers.

  3. Field 03PT is invalid if the entry meets any of these conditions:

    • is all zeros: 000000000

    • is all nines: 999999999

    • has fewer than nine characters

  4. Compare the entry in the field with the entry on the return and correct any errors. Correct the field errors below according to the instructions in the table.

    If... Then...
    A] the PTIN/SSN is unavailable, incomplete, or illegible, delete the entry from Field 03PT.
    B] the PTIN is all zeros or all nines delete the entry from Field 03PT.
Field 03PE, Preparer EIN
  1. Field 03PE, Preparer's EIN, is transcribed from the paid preparer area at the bottom of page 2, Form 1040 (TY18, located on page 1); Form 1040A, page 2; Form 1040EZ, page 1.

  2. This field is invalid if the Preparer's EIN is present and any of the following exist:

    • Not numeric

    • All zeros (000000000)

    • All nines (999999999)

    • Fewer than nine digits

  3. Compare the field on the screen with the entry on the return and correct the screen display, if necessary. Delete the field when a valid Preparer's EIN is not available.

Field 03PC, Preparer's Code
  1. If the return has been prepared by VITA or IRS, Code and Edit will edit a code to the right of "Check if" boxes in the paid preparer area of page 2, Form 1040 (TY18, page 1, Form 1040); or to the right of the preparer’s EIN in the paid preparer area on Form 1040A, page 2, or Form 1040EZ, page 1).

  2. Field 03PC will be invalid if the Preparer's Code is other than H, P, or R.

  3. Compare the entry in Field 03PC with the entry on the return. When edited or transcribed incorrectly, correct the screen display with the correct code as follows:

    If return was prepared by... Then...
    A] IRS, Enter P in Field 03PC.
    B] Other than the IRS, but reviewed by IRS, Enter R in Field 03PC.
Field 03PTN, Preparer Telephone Number
  1. Field 03PTN is transcribed from the paid preparer area at the bottom of page 2, Form 1040 (TY18, page 1, Form 1040); Form 1040A, page 2; Form 1040EZ, page 1.

  2. Field 03PTN is a ten-digit field that can contain alpha, numeric and blank entries.

Section 04, Additional Income and Adjustments to Income

  1. Section 04 includes additional income and adjustments to income following the layout of TY19 Form 1040, Schedule 1 (corresponding fields of Form 1040A/EZ).

Error Record Format Section 04

  1. Form 1040 Section 04 consists of the following fields:

    Form 1040 Field Name Form 1040 Field Location
    0401 State Income Tax Refund Schedule 1, line 1
    0402A Alimony Received Schedule 1, line 2a
    0403 Combined Schedule C Profit/Loss Schedule 1, line 3
    0404 Supplemental Gains and Losses Schedule 1, line 4
    0405 Schedule E Profit/Loss Schedule 1, line 5
    0406 Combined Schedule F Profit/Loss Schedule 1, line 6
    0407 Taxable Unemployment Compensation Schedule 1, line 7
    0408 Other Income Schedule 1, line 8
    04RTA Form 982 Indicator Edited in the left margin of Schedule 1
    0410 Educator Expenses Schedule 1, line 10
    0411 Reservist and Other Business Expense Schedule 1, line 11
    0412 Combined Health Savings Account Deduction Schedule 1, line 12
    0413 Form 3903 Moving Expenses Schedule 1, line 13)
    0414 Deduction for SE Tax Amount Schedule 1, line 14
    0415 SE Retirement Plans Deduction Schedule 1, line 15
    0416 Self Employed Health Insurance Schedule 1, line 16
    0417 Penalty on Savings Withdrawal Schedule 1, line 17
    0418A Alimony Paid Schedule 1, line 18a
    04SSN Alimony SSN Schedule 1, line 18b
    0419 IRA Payment Deduction Schedule 1, line 19
    0420 Student Loan Interest Deduction Schedule 1, line 20
    04TUI Tuition and Fees Deduction ERS input only
    04DPA Domestic Production Activities Deduction ERS input only
    04MSA Archer Medical Savings Account (MSA) Deduction Schedule 1, line 22 write-in
    04ADJ Other Adjustments Schedule 1, line 22 write-in
  2. On 2017 Form 1040A and 1040EZ, Section 04 consists of the following fields:

    Form 1040A Form 1040EZ Field Name Field Location
    0413 0403 Taxable Unemployment Compensation Line 13, Form 1040A
    Line 3, Form 1040EZ
    04OTI   Other Income ERS input only
    04RTA 04RTA Form 982 Indicator Edited in the margin of Form 1040A/EZ across from line 16/4
    0416   Educator Expenses Line 16, Form 1040A)
    0417   IRA Payment Deduction Line 17, Form 1040A
    0418   Student Loan Interest Deduction Line 18, Form 1040A
    0419   Tuition and Fees Deduction Line 19, Form 1040A

Invalid Conditions

  1. Fields in Section 04 are invalid if not all numeric.

Correction Procedures

  1. Correction procedures for Section 04 fields follow.

Field 0401, State Income Tax Refund
  1. Taxable refunds, credits, or offsets of state and local income taxes are transcribed in Field 0401 from Schedule 1, line 1 (TY18, located on Schedule 1, line 10; TY17, Form 1040, line 10).

  2. Refer to EC 218.

Field 0402A, Alimony Received
  1. Alimony received is transcribed in Field 0402A from Schedule 1, line 2a (TY18, located on Schedule 1, line 11; TY17, Form 1040, line 11).

  2. TY19 only, if the date on Schedule 1, line 2b, is after December 31, 2018, do not enter the amount in Field 0402A.

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ when the taxpayer changed alimony "received" to "recaptured" .

  4. Refer to EC 218.

Field 0403, Combined Schedule C Profit or Loss
  1. Business income or loss is transcribed in Field 0403 from Schedule 1, line 3 (TY18, located on Schedule 1, line 12; TY17, Form 1040, line 12).

  2. Refer to EC 202.

Field 0404, Other Gains or Losses
  1. Other gains or losses is transcribed in Field 0404 from Schedule 1, line 4 (TY18, located on Schedule 1, line 14: TY17, Form 1040, line 14).

Field 0405, Schedule E Income or Loss
  1. Rental real estate, royalties, partnerships, S corporations, trusts, etc., are transcribed in Field 0405 from Schedule 1, line 5 (TY18, located on Schedule 1, line 17; TY17, Form 1040, line 17).

  2. Refer to EC 206.

Field 0406, Combined Schedule F Profit or Loss
  1. Farm income or loss is transcribed in Field 0406 from Schedule 1, line 6 (TY18, located on Schedule 1, line 18; TY17, Form 1040, line 18).

  2. Refer to EC 208.

Fields 0407, 0413 and 0403, Taxable Unemployment Compensation
  1. Unemployment compensation is transcribed in Field 0407 from Schedule 1, line 7 (TY18, located on Schedule 1, line 19; TY17, Form 1040, line 19).

  2. Form 1040A, unemployment compensation is transcribed in Field 0413 from line 13 of Form 1040A.

  3. Form 1040EZ, unemployment compensation is transcribed in Field 0403 from line 3 of Form 1040EZ.

  4. Taxpayers who received an overpayment of unemployment compensation during the year and repaid it during the tax year are instructed to notate Repaid. Refer to EC 218.

  5. Alaska Permanent Fund Dividend (APFD) recipients and taxpayers receiving "Income Tax Energy Rebates" from New Mexico and Oklahoma are instructed to report these amounts as taxable unemployment compensation.

  6. Supplemental Unemployment Benefits (sub-pay) should be reported as wages for TY87 and later.

  7. Refer to EC 218.

Field 0408 and Field 04OTI, Other Income
  1. Other income is transcribed in Field 0408 from Schedule 1, line 8 (TY18, located on Schedule 1, line 21; TY17, Form 1040, line 21).

  2. Form 1040A, Field 04OTI is an ERS input only field.

  3. Refer to EC 218.

Field 04RTA, Form 982 Indicator
  1. Code and Edit edits "1" in the left margin of Schedule 1, line 10, when Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (And Section 1082 Basis Adjustment), is attached. Field 04RTA is transcribed when the Form 982 Indicator is edited.

  2. This is a one-digit numeric field.

  3. This field will be invalid if other than 0 or 1.

Fields 0410 and 0416, Educator Expenses
  1. Educator expenses is transcribed in Field 0410 from Schedule 1, line 10 (TY18, located on Schedule 1, line 23; TY17, Form 1040, line 23).

  2. Form 1040A, educator expenses is transcribed in Field 0416 from line 16, Form 1040A.

  3. Refer to EC 220.

Field 0411, Reservist and Others Business Expenses
  1. Field 0411 is transcribed from Schedule 1, line 11 (TY18, located on Schedule 1, line 24; TY17, Form 1040, line 24).

  2. Certain business expenses of reservists, performing artists, and fee-basis government officials are reported on Form 2106.

  3. This field will be invalid if other than numeric or blank.

  4. Refer to EC 229.

Field 0412, Combined Health Savings Account Deduction
  1. Health Savings Account deduction is transcribed in Field 0412 from Schedule 1, line 12 (TY18, located on Schedule 1, line 25; TY17, Form 1040, line 25).

  2. Refer to EC 226.

Field 0413, Form 3903 Moving Expenses
  1. Moving expenses is transcribed in Field 0413 from Schedule 1, line 13 (TY18, located on Schedule 1, line 26; TY17, Form 1040, line 26).

  2. Refer to EC 229.

Field 0414, Deduction for Self-Employment Tax
  1. The deduction for Self-employment (SE) tax is transcribed in Field 0414 from Schedule 1, line 14 (TY18, located on Schedule 1, line 27; TY17, Form 1040, line 27).

  2. Refer to EC 211.

Field 0415, Self Employed Retirement Plans Deduction
  1. Self-employed SEP, SIMPLE, and qualified plans deduction is transcribed in Field 0415 from Schedule 1, line 15 (TY18, located on Schedule 1, line 28; TY17, Form 1040, line 28).

  2. Refer to EC 222.

Field 0416, Self Employed Health Insurance Deduction
  1. Self-employed health insurance deduction is transcribed in Field 0416 from Schedule 1, line 16 (TY18, located on Schedule 1, line 29; TY17, Form 1040, line 29).

  2. Refer to EC 229.

Field 0417, Penalty on Savings Withdrawal
  1. Penalty on early withdrawal of savings is transcribed in Field 0417 from Schedule 1, line 17 (TY18, located on Schedule 1, line 30; TY17, Form 1040, line 30).

  2. Refer to EC 229.

Field 0418A, Alimony Paid
  1. Alimony paid is transcribed in Field 0418A from Schedule 1, line 18a (TY18, located on Schedule 1, line 31a; TY17, Form 1040, line 31a).

  2. TY19 only, if the date on line 18c is after December 31, 2018, do not enter the amount in Field 0418A.

  3. Refer to EC 078 and EC 229.

Field 04SSN, Alimony SSN
  1. Alimony Recipient’s SSN is transcribed in Field 04SSN from Schedule 1, line 18b (TY18, located on Schedule 1, line 31b; TY17, Form 1040, line 31b).

  2. Refer to EC 078.

Fields 0419 and 0417, IRA Deduction
  1. IRA deduction is transcribed in Field 0419 from Schedule 1, line 19 (TY18, located on Schedule 1, line 32; TY17, Form 1040, line 32).

  2. Form 1040A, IRA deduction is transcribed in Field 0417 from line 17, Form 1040A.

  3. Refer to EC 222.

Fields 0420 and 0418, Student Loan Interest Deduction
  1. Student loan interest deduction is transcribed in Field 0420 from Schedule 1, line 20 (TY18, located on Schedule 1, line 33; TY17, Form 1040, line 33).

  2. Form 1040A, student loan interest deduction is transcribed in Field 0418 from line 18, Form 1040A.

  3. Refer to EC 224.

Fields 04TUI and 0419, Tuition and Fees Deduction
  1. TY17 and prior, Field 04TUI is ERS input only from the tuition and fees amount on Form 1040, line 34.

  2. TY17 and prior, Field 0419 is ERS input only from the tuition and fees amount on line 19 of Form 1040A.

  3. Refer to EC 225.

Field 04DPA, Domestic Production Activities Deduction
  1. Field 04DPA is for ERS input only for TY18 and prior. In Field 04DPA, enter the amount identified as DPAD (Form 8903, line 25) on TY18 Schedule 1, line 36 (TY17, Form 1040, line 35). TY18, adjust the entry in Field 04ADJ by subtracting the DPAD amount from the Field 04ADJ amount. if included.

  2. Refer to EC 228.

Field 04MSA, Archer Medical Savings Account (MSA) Deduction
  1. Field 04MSA is transcribed from the dotted portion of Schedule 1, line 22 (TY18, located on Schedule 1, line 36).

  2. Refer to EC 227.

Field 04ADJ, Other Adjustments
  1. Field 04ADJ is transcribed from the dotted portion of Schedule 1, line 22 (TY18, located on Schedule 1, line 36).

  2. Refer to EC 229.

Section 05, Additional Taxes, Additional Credits and Payments

  1. Section 05 includes additional taxes from Form 1040, Schedule 2, and additional credits and payments from Form 1040, Schedule 3 (corresponding fields of Form 1040A/EZ).

Error Record Format Section 05

  1. Form 1040 Section 05 consists of the following fields:

    Form 1040 Field Name Form 1040 Field Location
    05201 Alternative Minimum Tax Schedule 2, line 1
    05202 Excess Advance Premium Tax Credit Repayment Schedule 2, line 2
    05204 Combined Self-Employment Tax Schedule 2, line 4
    05205 Unreported Social Security and Medicare Tax from Forms 4137 and 8919 Schedule 2, line 5
    05206 Combined Tax Retirement Plans Schedule 2, line 6
    0527A Combined Household Employment Tax Amount Schedule 2, line 7a
    0527B First-Time Homebuyer Credit Repayment Schedule 2, line 7b
    05SRP Health Care Responsibility Payment (TY18 and prior) TY18, Schedule 4, line 61
    TY17, Form 1040, line 61
    05LIR Form 8611 Recapture Tax ERS input only
    05RTX Recapture Tax ERS input only
    05USS Uncollected Social Security Tax on Tips Schedule 2, line 8c
    05IDT Form 6252 Amount ERS input only
    05IDC Form 6252 Code Edited to the right of Schedule 2, line 8
    05208 Form 8959, 8960, and Other Taxes Schedule 2, line 8
    05209 Section 965 Tax Installment Schedule 2, line 9
    05TL Section 965 Tax Liability ERS input only
    05301 Foreign Tax Credit Schedule 3, line 1
    05302 Credit for Child and Dependent Care Schedule 3, line 2
    05303 Education Credit Schedule 3, line 3
    05304 Retirement Savings Contribution Credit Schedule 3, line 4
    05305 Residential Energy Credit Schedule 3, line 5
    05306 Form 3800, 8801, and Other Credits Schedule 3, line 6
    05GBC General Business Credit Schedule 3, line 6
    05PYM Credit for Prior Year Minimum Tax Schedule 3, line 6
    05ELD Credit for the Elderly Schedule 3, line 6
    05ADC Adoption Credit ERS input only
    05MIC Mortgage Interest Credit ERS input only
    05QED Form 8936 Qualified Plug-in Electric Drive Credit ERS input only
    05AMC Form 8910 Alternative Motor Vehicle Credit ERS input only)
    05OSC Other Statutory Credits ERS input only
    05308 Estimated Tax Payments Schedule 3, line 8
    05309 Reconciled Premium Tax Credit Amount Schedule 3, line 9
    05310 Form 4868 Payment with Request for Extension Schedule 3, line 10
    05311 Excess Social Security and RRTA Tax Schedule 3, line 11
    05312 Form 4136 Fuel Tax Credit Schedule 3, line 12
    05313 Form 2439 and Other Credits Schedule 3, line 13
    05RIC Regulated Investment Company Credit ERS input only
    05HCC Form 8885 Health Coverage Tax Credit ERS input only
    05OTH Other Payment or Credit Amount ERS input only
    05TYP Other Payment or Credit Type ERS input only
    05PSC Form 1040C Credit ERS input only
  2. On 2017 Form 1040A and 1040EZ, Section 05 consists of the following fields:

    Form 1040A Form 1040EZ Field Name Field Location
    0529   Excess Advance Premium Tax Credit Repayment Line 29, Form 1040A
    0538 0511 Health Care Responsibility Payment Line 38, Form 1040A
    Line 11, Form 1040EZ
    0531   Credit for Child and Dependent Care Line 31, Form 1040A
    0533   Education Credit Line 33, Form 1040A
    0534   Retirement Savings Contribution Credit Line 34, Form 1040A
    0532   Credit for the Elderly Line 32, Form 1040A
    0541   Estimated Tax Payments Line 41, Form 1040A
    0545   Reconciled Premium Tax Credit Amount Line 45, Form 1040A
    05EXT 05EXT Form 4868 Payment ERS input only, Form 1040A and Form 1040EZ
    05EXS 05EXS Excess Social Security and RRTA Tax ERS input only, Form 1040A and Form 1040EZ
    05OTH 05OTH Other Payment or Credit Amount ERS input only, Form 1040A and Form 1040EZ
    05TYP 05TYP Other Payment or Credit Type ERS input only, Form 1040A and Form 1040EZ

Invalid Conditions

  1. Fields in Section 05 will display as invalid if not all numeric.

Correction Procedures

  1. Correction procedures for Section 05 fields follow.

Field 05201, Alternative Minimum Tax, Form 6251
  1. Alternative minimum tax (AMT) is transcribed in Field 05201 from Schedule 2, line 1 (TY18, located on Schedule 2, line 45; TY17, Form 1040, line 45).

  2. Refer to EC 267.

Fields 05202 and 0529, Advance Premium Tax Credit Repayment
  1. Advance Premium Tax Credit (APTC) repayment is transcribed in Field 05202 from Schedule 2, line 2 (TY18, located on Schedule 2, line 46; TY17, Form 1040, line 46).

  2. Form 1040A, APTC repayment is transcribed in Field 0529 from Form 1040A, line 29.

  3. The field must be numeric, positive, and dollars only.

  4. Refer to EC 190 and EC 270.

Field 05204, Combined Self-Employment Tax
  1. Combined self-employment tax is transcribed in Field 05204 from Schedule 2, line 4 (TY18, located on Schedule 4, line 57; TY17, Form 1040, line 57).

  2. Refer to EC 209.

Field 05205, Combined Unreported Social Security and Medicare Tax, Forms 4137 and 8919
  1. Combined unreported social security and Medicare tax from Form 4137 and Form 8919 is transcribed in Field 05205 from Schedule 2, line 5 (TY18, located on Schedule 4, line 58; TY17, Form 140, line 58).

  2. Refer to EC 314.

Field 05206, Combined Tax on Retirement Plans
  1. Additional tax on IRAs and other retirement plans is transcribed in Field 05206 from Schedule 2, line 6 (TY18, located on Schedule 4, line 59; TY17, Form 1040, line 59).

  2. Refer to EC 318.

Field 0527A, Combined Household Employment Taxes, Schedule H
  1. Combined household employment taxes is transcribed in Field 0527A from Schedule 2, line 7a (TY18, located on Schedule 4, line 60a; TY17, Form 1040, line 60a).

  2. Combined household employment taxes field is valid for TY95 and later. Refer to EC 322, EC 324 and EC 326.

Field 0527B, First-Time Homebuyer Credit Repayment
  1. First-time homebuyer credit repayment is transcribed in Field 0527B from Schedule 2, line 7b (TY18, located on Schedule 4, line 60b; TY17, Form 1040, line 60b).

  2. Refer to EC 329.

Fields 05SRP, 0538, and 0511, Health Care Responsibility Payment Amount
  1. These fields are valid for TY18 and prior only, and the money amount field is positive and dollars only.

  2. TY18, health care responsibility amount is located on Schedule 4, line 61 (TY17, Form 1040, line 61).

  3. Form 1040A, Field 0538 is transcribed from Form 1040A, line 38.

  4. Form 1040EZ, Field 0511 is transcribed from Form 1040EZ, line 11.

  5. Refer to EC 334.

Field 05LIR, Form 8611 Recapture
  1. Field 05LIR, Form 8611 Recapture, is ERS input only. Taxpayers are instructed to note "LIHCR" (Form 8611) on Schedule 2, line 8 (TY18, Schedule 4, line 62; TY17, Form 1040, line 62).

  2. Refer to EC 333.

Field 05RTX, Recapture Taxes
  1. Field 05RTX is an ERS input only field that includes "Other Taxes" on Schedule 2, line 8 (TY18, Schedule 4, line 62; TY17, Form 1040, line 62).

  2. Refer to EC 333.

Field 05USS, Uncollected Tax on Reported Tips
  1. Uncollected tax on reported tips is a "write-in" tax transcribed from Schedule 2, line 8c (TY18, located on Schedule 4, line 62c; TY17, Form 1040, line 62c), and is identified as "Uncollected Tax on Tips" or "UT" . Code and Edit will edit 8c and a money amount to the left of line 8.

  2. Refer to Form W-2, box 12, Deferral Codes A, B, M and/or N. Enter the amount in Field 05USS.

  3. For Form 1040A, include the "UT" uncollected tax amount in total tax, and enter the result in Field 94TXV. Do not convert to Form 1040.

  4. Refer to EC 333.

Field 05IDT, Form 6252 IRC 453 Amount
  1. TY19 and later, Field 05IDT is an ERS input only field. When a Form 6252 IRC 453 code is present in Field 05IDC, enter the amount from Schedule 2, line 8c identified as "IRC 453" from Form 6252.

  2. Blank the field if input on TY18 or prior returns,

  3. Refer to EC 333 and 334.

Field 05IDC, Form 6252 IRC 453 Code
  1. TY19 and later, Field 05IDC is one position in length and will be transcribed from the right margin of Schedule 2, near line 8.

  2. The valid entries in Field 05IDC are:

    1. A - Taxpayer notes 453(A)

    2. L - Taxpayer notes 453(L)

    3. blank

  3. Blank the field if input on TY18 or prior returns.

  4. Refer to EC 333 and 334.

Field 05208, Form 8959, Form 8960, and Other Taxes
  1. Field 05208 is transcribed from Schedule 2, line 8 (TY18, located on Schedule 4, line 62; TY17, Form 1040, line 62).

  2. Refer to EC 333.

Field 05209, Section 965 Tax Installment
  1. Section 965 net tax liability installment applies to TY18 and later, and is transcribed in Field 05209 from Schedule 2, line 9 (TY18, located on Schedule 4, line 63; TY17, Form 1040, line 63).

  2. Refer to EC 188.

Field 05TL, Section 965 Tax Liability
  1. Section 965 Tax Liability applies to TY18 and later. Field 05TL is an ERS input only field from Part 1, column (d), Form 965-A.

  2. Refer to EC 188.

Field 05301, Foreign Tax Credit, Form 1116
  1. Foreign tax credit is transcribed in Field 05301 from Schedule 3, line 1 (TY18, located on Schedule 3, line 48; TY17, Form 1040, line 48).

  2. Refer to EC 277 and EC 310.

Fields 05302 and 0531, Credit for Child and Dependent Care Expenses, Form 2441
  1. Credit for child and dependent care expenses is transcribed in Field 05302 from Schedule 3, line 2 (TY18, located on Schedule 3, line 49; TY17, Form 1040, line 49).

  2. Form 1040A, credit for child and dependent care expenses is transcribed in Field 0531 from line 31, Form 1040A.

  3. Refer to EC 279.

Fields 05303 and 0533, Education Credits, Form 8863
  1. Education credits is transcribed in Field 05303 from Schedule 3, line 3 (TY18, located on Schedule 3, line 50; TY17, Form 1040, line 50).

  2. Form 1040A, education credits is transcribed in Field 0533 from line 33, Form 1040A.

  3. Refer to EC 283, 284, and 285.

Fields 05304 and 0534, Retirement Savings Contribution Credit, Form 8880
  1. Retirement savings contribution credit is transcribed in Field 05304 from Schedule 3, line 4 (TY18, located on Schedule 3, line 51; TY17, Form 1040, line 51).

  2. Form 1040A, retirement savings contribution credit is transcribed in Field 0534 from line 34, Form 1040A.

  3. Refer to EC 286 and 310.

Field 05305, Residential Energy Credit, Form 5695
  1. Residential energy credit is transcribed in Field 05305 from Schedule 3, line 5 (TY18, located on Schedule 3, line 53; TY17, Form 1040, line 53).

  2. Refer to EC 291.

Field 05306, Form 3800, Form 8801, and Other Credits
  1. Form 3800, Form 8801, and other credits are transcribed in Field 05306 from Schedule 3, line 6 (TY18, located on Schedule 3, line 54; TY17, Form 1040, line 54).

  2. Refer to EC 299, 300, and 302.

Field 05GBC, General Business Credits, Form 3800
  1. General business credits is transcribed in Field 05GBC when the taxpayer checks box a on Schedule 3, line 6 (TY18, located on Schedule 3, line 54; TY17, Form 1040, line 54).

  2. Refer to EC 299, 302, and 310.

Field 05PYM, Credit for Prior Year Minimum Tax, Form 8801
  1. Credit for prior year minimum tax, Form 8801, is transcribed in Field 05PYM when the taxpayer checks box b on Schedule 3, line 6 (TY18, located on Schedule 3, line 54; TY17, Form 1040, line 54).

  2. Refer to EC 302, 308, and 310.

Fields 05ELD and 0532, Credit for the Elderly or Disabled, Schedule R
  1. Form 1040, the taxpayer is instructed to check box c on Schedule 3, line 6 (TY18, Schedule 3, line 54; TY17, Form 1040, line 54), and write "Sch R" . Enter the credit amount from Schedule R in Field 05ELD.

  2. Form 1040A, credit from Schedule R is transferred to Form 1040A, line 32. Enter the amount in Field 0532.

  3. If "CFE" or "Sch R" is noted with an amount, and Schedule R is not attached, SSPND 211.

  4. Refer to EC 282.

Field 05ADC, Adoption Credit, Form 8839
  1. Field 05ADC is ERS input only for non-refundable adoption credit. The taxpayer checks box c on Form 1040, Schedule 3, line 6 (TY18, Schedule 3, line 54; TY17, Form 1040, line 54) and writes "Form 8839" to the right of the box.

  2. The non-refundable adoption credit is in effect TY97 through TY09 and TY12 through TY19. For TY10 through TY11, Form 8839 credit is refundable only.

  3. Refer to EC 294 and 299.

Field 05MIC, Mortgage Interest Credit, Form 8396
  1. Field 05MIC is ERS input only for mortgage interest credit. The taxpayer checks box c on Schedule 3, line 6 (TY18, Schedule 3, line 54; TY17, Form 1040, line 54), and writes "Form 8396" .

  2. Refer to EC 292, 299, and 310.

Field 05QED, Qualified Plug-in Electric Drive Credit, Form 8936
  1. Field 05QED is ERS input only for qualified plug-in electric drive credit. The taxpayer checks box c on Form 1040, Schedule 3, line 6 (TY18, Schedule 3, line 54; TY17, Form 1040, line 54), and writes "Form 8936" .

  2. Refer to EC 299 and 302.

Field 05AMC, Alternative Motor Vehicle Credit, Form 8910
  1. Field 05AMC is ERS input only for alternative motor vehicle credit. TY18 and prior, the taxpayer checks box c on Schedule 3, line 54 (TY17, Form 1040, line 54), and writes "Form 8910" . TY19, taxpayers can claim "pass-through" alternative motor vehicle credit on Form 3800, Part III, line 1r.

  2. Refer to EC 299 and 302.

Field 05OSC, Other Statutory Credits
  1. Field 05OSC is ERS input only for other statutory credits. The taxpayer is instructed to include this amount on Schedule 3, line 7 (TY18, Schedule 3, line 55; TY17, Form 1040, line 55).

  2. Refer to EC 300, 302, and 310.

Fields 05308 and 0541, Estimated Tax Payments
  1. Estimated tax payments is transcribed in Field 05308 from Schedule 3, line 8 (TY18, located on line 66, Schedule 5; TY17, Form 1040, line 65).

  2. Form 1040A, estimated tax payments is transcribed in Field 0541 from line 41, Form 1040A.

  3. Refer to EC 355 and EC 360.

Fields 05309 and 0545, Reconciled Premium Tax Credit
  1. Premium Tax Credit is transcribed in Field 05309 from Schedule 3, line 9 (TY18, located on line 70, Schedule 5; TY17, Form 1040, line 69).

  2. Form 1040A, reconciled premium tax credit is transcribed in Field 0545 from line 45, Form 1040A.

  3. Refer to EC 345 and 346.

Fields 05310 and 05EXT, Form 4868 Payment
  1. The amount paid with Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, is transcribed in Field 05310 from Schedule 3, line 10 (TY18, located on line 71, Schedule 5; TY17, Form 1040, line 70).

  2. Form 1040A/1040EZ, Field 05EXT is ERS input only. The taxpayer is instructed to write "Form 4868" and the payment amount to the left of the Total Payments line.

  3. Refer to EC 355.

Fields 05311 and 05EXS, Excess Social Security/RRTA
  1. Excess social security tax and tier 1 RRTA is transcribed in Field 05311 from Schedule 3, line 11 (TY18, located on line 72, Schedule 5; TY17, Form 1040, line 71).

  2. Form 1040A/1040EZ, Field 05EXS is ERS input only. The taxpayer is instructed to write "Excess SST" and the payment amount to the left of the Total Payments line.

  3. Refer to EC 121 and 355.

Field 05312, Form 4136, Fuel Tax Credit
  1. Fuel tax credit is transcribed in Field 05312 from Schedule 3, line 11 (TY18, located on line 73, Schedule 5; TY17, Form 1040, line 72)

  2. Refer to EC 347.

Field 05313, Refundable Credit from Form 2439 and Other Credits
  1. The taxpayer reports these refundable credits on Schedule 3, line 13 (TY18, located on line 74, Schedule 5; TY17, Form 1040, line 73) and checks the box to identify the credit. Refer to EC 348.

    1. Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, box a.

    2. For TY18 - TY15 and TY13 - TY09, Form 8885 Health Coverage Tax Credit, box c.

      Note:

      TY14, Health Coverage Tax Credit can be claimed using only Form 1040X.

    3. Other Credits written in box d.

Field 05RIC, Form 2439
  1. Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains - The taxpayer will include the total amount of credit from Form 2439 on Schedule 3, line 13 (TY18, line 74, Schedule 5; TY17, Form 1040, line 73) . The taxpayer is also instructed to attach Copy B of Form 2439 and to check box a on Schedule 3, line 13 (TY18, Schedule 5, line 74; TY17, Form 1040, line 73).

Field 05HCC, Health Coverage Tax Credit
  1. This field is for ERS input only.

  2. Enter the credit amount from Form 8885 in Field 05HCC, if eligible. The taxpayer is instructed to attach Form 8885 and to check box c on Schedule 3, line 13 (TY18, Schedule 5, line 74; TY17, Form 1040, line 73).

  3. Refer to EC 348.

Field 05OTH, Other Payment or Credit Amount
  1. Field 05OTH is numeric only, must be a positive amount, and dollars and cents, is ERS input only and is found on Schedule 3, line 13 (TY18, Schedule 5, line 74; TY17, Form 1040, line 73) or on prior year Form 1040, 1040A or 1040EZ, is used for a payment or credit amount without a specific field designator.

  2. Refer to EC 355.

Field 05TYP, Other Payment or Credit Type
  1. Field 05TYP identifies the payment or credit type, is alphanumeric, and is ERS input only.

  2. Refer to EC 355.

Field 05PSC, Form 1040C Credit
  1. This field is ERS input only.

  2. Enter the amount of credit in Field 05PSC if there is an indication that a taxpayer is claiming a credit from Form 1040C in the Payments area of Form 1040 or Schedule 3 (TY18, Schedule 5).

    Note:

    Form 1040C serves as a payment voucher for aliens leaving the country before the tax return is due.

Section 06, Direct Deposit

  1. Section 06 contains taxpayer information for direct deposit. Refer to EC 137 and 138.

  2. Safeguards are in place after error correction to ensure the accuracy of the deposit. If entries in Section 06 do not meet the tests, or if direct deposit is requested on a prior year return, the IRS will issue a paper refund check instead and send a notice CP 53 to the taxpayer to explain why we did not allow the direct deposit.

  3. Section 06 must be present for the CP 53 to generate.

  4. The Depositor Account Number (Field 06DAN) is transcribed twice in ISRP. If the two transcriptions do not match, a Priority II Section Error will display.

Error Record Format Section 06

  1. Section 06 consists of the following fields:

    Forms 1040, 1040A and 1040EZ Field Name 2019 Field Location Prior Year Field Location
    06RTN Routing and Transit Number (RTN) Form 1040, line 21b TY18 Form 1040, line 20b
    TY17 Form 1040, line 76b
    TY17 Form 1040A, line 48b
    TY17 Form 1040EZ, line 13b
    06DAN Depositor Account Number (DAN) Form 1040, line 21d TY18 Form 1040, line 20d
    TY17 Form 1040, line 76d
    TY17 Form 1040A, line 48d
    TY17 Form 1040EZ, line 13d
    06TDA Type Depositor Account Form 1040, line 21c TY18 Form 1040, line 20c
    TY17 Form 1040, line 76c
    TY17 Form 1040A, line 48c
    TY17 Form 1040EZ, line 13c

Correction Procedures

  1. Correct coding and transcription errors and misplaced entries in all displayed fields.

    1. If the only entry in Section 06 is a mark in either the Checking or Savings box, enter C in the Clear Field.

    2. If the Direct Deposit information section is filled with all X's, DLSEC 06.

    3. If it appears that the taxpayer is requesting a direct deposit, don’t DLSEC 06

  2. Verify Field 06DAN was input correctly.

    Caution:

    When a Section 06 Priority II Error occurs, it is likely the Depositor Account Number (Field 06DAN) has been incorrectly transcribed.

  3. On paper returns, if either or both of the entries have been altered on lines 21b or 21d (TY18, lines 20b or 20d; TY17 and prior, lines 76b or 76d, Form 1040; lines 48b or 48d, Form 1040A; lines 13b or 13d, Form 1040EZ), delete the entries in Fields 06RTN and 06DAN.

  4. If a voided check is attached and the name matches the name on the return, allow direct deposit. Enter all applicable data for the section.

  5. Correction procedures for Section 06 fields follow.

Field 06RTN, Routing and Transit Number
  1. Routing and Transit Number represents the taxpayer's bank.

  2. This field is invalid if it isn't exclusively numeric. Nine digits must be present; blanks aren't valid entries. If fewer than nine digits are present, the computer will generate a zero in each unfilled field. The resulting number isn't the taxpayer's entry, and must be deleted as invalid.

  3. Verify and correct any transcription errors.

  4. Delete the data in Field 06RTN when non-numeric or illegible characters or fewer than nine digits are present or the routing number has more than nine characters. If the entry has been altered on a paper return, delete the entries in Fields 06RTN and 06DAN.

  5. Enter C in the Clear Field when EC 137 displays.

Field 06DAN, Depositor Account Number
  1. Valid characters are alphanumeric characters and the hyphen.

  2. Blank spaces are not allowed within Field 06DAN.

  3. Delete the entry in Field 06DAN when any part of the depositor account number is illegible. If the entry has been altered on a paper return, delete the entries in Fields 06RTN and 06DAN.

  4. Enter C in the Clear Field when EC 138 displays.

Field 06TDA, Type Depositor Account
  1. Two alphanumeric characters are valid in Field 06TDA.

    • C: checking account

    • S: savings account

  2. Enter C if the checking box is checked, or S if the savings box is checked.

Section 07, Schedule A

  1. Schedule A, Itemized Deductions, is used to list expenses paid during the year that are allowed as a deduction before taxable income is determined on Form 1040.

  2. There may be items on Schedule A that are unallowable by law. Code and Edit tax examiners will edit unallowable codes, if necessary. Error Resolution Examiners are responsible for the code(s) when entering Section 07 to the Error Record. The Unallowable Codes are listed in IRM Exhibit 3.12.2-6.

Error Record Format, Section 07

  1. Fields in Section 07 must be positive entries. Section 07 comprises these fields:

    Form 1040 Field Name Field Location
    0701 Medical Expense Line 1
    0703 Percentage of AGI Taxpayer Line 3
    0704 Total Medical Deduction Line 4
    0704V Total Medical Deduction Verified ERS input only
    0705A State and Local Income or Sales Tax Line 5a
    07STI State and Local Income or Sales Tax Code Line 5a checkbox
    0705B Real Estate Tax Line 5b
    0705C Personal Property Taxes Line 5c
    0706 Other Taxes Line 6
    0707 Total Tax Deduction Line 7
    0708A Financial Home Mortgage Interest Line 8a
    0708B Personal Seller Home Mortgage Interest Line 8b
    0708C Deductible Points Line 8c
    07MIP Qualified Mortgage Insurance Premium (prior year only) ERS input only, TY17, line 13
    0709 Investment Interest Line 9
    0710 Total Interest Deduction Line 10
    0711 Cash Contributions Line 11
    0712 Other Contributions Line 12
    0713 Carryover Contributions Line 13
    0714 Total Contributions Line 14
    0715 Total Casualty/Theft Loss Line 15
    07UEE Unreimbursed Employee Expense (prior year only) ERS input only, TY17, line 21
    07GMD Gross Miscellaneous Deductions (prior year only) ERS input only, TY17, line 24
    07NMD Net Miscellaneous Deductions (prior year only) ERS input only, TY17, line 27
    0716 Other Itemized Deductions Line 16
    07OTG Other Than Gambling (prior year only) ERS input only, TY17, line 28
    0717 Total Itemized Deductions Line 17
    0717V Total Itemized Deductions Verified ERS input only
    07IEI Itemized Deduction Election Indicator Line 18

Invalid Condition

  1. A Section 07 field is in error if not all numeric.

Correction Procedures

  1. Combine related amounts when there is more than one Schedule A attached. Only one Schedule A can be processed per return.

  2. Additional correction procedures for Section 07 fields follow.

Field 0701, Medical Expense
  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Refer to EC 232.

Field 0703, Percentage of AGI Taxpayer
  1. This amount is transcribed from line 3, Schedule A. Refer to EC 232

Field 0704, Taxpayer's Total Medical Deduction
  1. The amount is transcribed from line 4, Schedule A. Refer to EC 232.

Field 0704V, Total Medical Verified
  1. This field is for ERS input only and is used whenever the computer cannot correctly compute Schedule A, Medical and Dental Expenses (e.g., certain prior year returns).

Field 0705A, State and Local Income and Sales Tax
  1. This field is transcribed from line 5a, Schedule A (TY17, located on line 5, Schedule A). Refer to EC 236.

Field 07STI, State and Local Income or Sales Tax Code
  1. State and Local Income or Sales Tax Code Field 07STI indicates when the taxpayer has opted to use the deduction for General Sales Tax (checked box 5a on Schedule A). TY17 and prior, Field 07STI indicates the taxpayer has opted to use the deduction for General Sales Tax or State and Local Income Taxes. Refer to EC 236.

  2. The valid codes are as follows:

    1. 1 - TY17 and prior, taxpayer marked “income taxes” checkbox on line 5a, Schedule A

    2. 2 - For all tax years, taxpayer marked “general sales tax” checkbox on line 5a, Schedule A (TY17 and prior, checkbox on line 5b, Schedule A)

    3. 0 (Zero) or blank - Checkbox(es) not marked

  3. TY18 and later, correct Field 07STI as follows:

    1. Enter 2 if box 5a (general sales tax) is checked.

    2. Delete the entry if box 5a is not checked.

  4. TY17 and prior, correct Field 07STI as follows:

    1. Enter 1 if only box 5a is checked.

    2. Enter 2 if box 5b or both boxes are checked.

    3. Delete the entry if neither of the boxes are checked.

Field 0705B, Real Estate Taxes
  1. This field is transcribed from line 5b, Schedule A (TY17, located on line 6, Schedule A). Refer to EC 236.

Field 0705C, Personal Property Taxes
  1. This field is transcribed from line 5c, Schedule A (TY17, located on line 7, Schedule A). Refer to EC 236.

Field 0706, Other Taxes
  1. This field is transcribed from line 6, Schedule A (TY17, located on line 8, Schedule A). Refer to EC 236.

Field 0707, Total Tax Deduction
  1. The field is transcribed from line 7, Schedule A (TY17, located on line 9, Schedule A). Refer to EC 236.

Field 0708A, Home Mortgage Interest and Points
  1. This field is transcribed from line 8a, Schedule A (TY17, located on line 10, Schedule A), and represents home mortgage interest paid to financial institutions. Refer to EC 238.

Field 0708B, Home Mortgage Interest, not on Form 1098
  1. This field is transcribed from line 8b, Schedule A (TY17, located on line 11, Schedule A), and represents mortgage interest paid to individuals. Refer to EC 238.

Field 0708C, Deductible Points
  1. This field is transcribed from line 8c, Schedule A (TY17, located on line 12, Schedule A), and represents deductible points from the purchase of a home. Refer to EC 238.

Field 07MIP, Qualified Mortgage Insurance Premiums
  1. This field is for ERS input only on TY17 and prior year returns. TY17, line 13, Schedule A, represents qualified mortgage insurance premiums. Refer to EC 238.

Field 0709, Investment Interest
  1. This field is transcribed from line 9, Schedule A (TY17, located on line 14, Schedule A) and represents Investment Interest paid. Refer to EC 238.

Field 0710, Total Interest Deduction
  1. This field is transcribed from line 10, Schedule A (TY17, located on line 15, Schedule A). Refer to EC 238.

Field 0711, Cash Contributions
  1. The field is transcribed from line 11, Schedule A (TY17, located on line 16, Schedule A) and represents cash contributions. Refer to EC 240.

Fields 0712, Other Contributions, Not By Check or Cash
  1. This field is transcribed from line 12, Schedule A (TY17, located on line 17, Schedule A) and is for contributions not by check or cash. Refer to EC 240.

  2. Form 8283, Noncash Charitable Contributions, is required for any deduction ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Field 0713, Carryover Contributions
  1. This field is transcribed from line 13, Schedule A (TY17, located on line 18, Schedule A). Refer to EC 240.

Field 0714, Total Contributions
  1. This field is transcribed from line 14, Schedule A (TY17, located on line 19, Schedule A). Refer to EC 240.

Field 0715, Total Casualty or Theft Loss
  1. This field is transcribed from line 15, Schedule A (TY17, located on line 20, Schedule A). Refer to EC 242

Field 07UEE, Unreimbursed Employee Expenses
  1. This field is for ERS input only on TY17 and prior returns. TY17, use Field 07UEE for unreimbursed employee expenses from line 21, Schedule A. Refer to EC 244.

Field 07GMD, Gross Miscellaneous Deduction
  1. This field is for ERS input only on TY17 and prior returns. TY17, use Field 07GMD for gross miscellaneous deduction from line 24, Schedule A. Refer to EC 244.

Field 07NMD, Net Miscellaneous Deduction
  1. This field is for ERS input only on TY17 and prior returns. TY17, use Field 07NMD for net miscellaneous deduction from line 27, Schedule A. Refer to EC 244.

Field 0716, Other Itemized Deductions
  1. TY18 and later, Field 0716 is transcribed from line 16, Schedule A. TY17, Field 0716 is for "gambling losses" on line 28, Schedule A, and cannot be more than gambling winnings listed on page 1 of Form 1040. Refer to EC 246.

Field 07OTG, Other Than Gambling
  1. This field is for ERS input only on TY17 and prior returns. TY17 and prior, use Field 07OTG when an entry "other than gambling" is present on Schedule A, line 28 for other miscellaneous deductions and total itemized deductions. Refer to EC 246.

Field 0717, Total Itemized Deductions
  1. This field is transcribed from line 17, Schedule A (TY17, located on line 29, Schedule A).

  2. This field is the total of Fields 0704, 0707, 0710, 0714, 0715, 0716, and 07OTG. For TY17 and prior, the total will also include 07NMD. Refer to EC 246.

  3. TY13 - TY17, total itemized deductions are limited by adjusted gross income.

Field 0717V, Total Itemized Deductions Verified
  1. This field is for ER