3.12.2 Individual Master File Error Resolution General Instructions

Manual Transmittal

November 09, 2017

Purpose

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

Material Changes

(1) IRM 3.12.2.1 Added and edited Internal Controls

(2) IRM 3.12.2.2.7.3(1) Changed the CARE rework procedures

(3) IRM 3.12.2.2.9(6) Revised correspondence procedures

(4) IRM 3.12.2.2.9.1(3) Changed HCTC second correspondence from LTR 12C to LTR 1263C

(5) IRM 3.12.2.4.3.20.2(1) c) Added DHL Express

(6) RIM 3.12.2.4.3.24(30 Deleted H&R Block info

(7) IRM 3.12.2.5.14 Added Fields 02W2A and 02W2B, and instructions

(8) IRM 3.12.2.7.4.8 Added Field 04HCR, ERS input only for write-in tax "HCTC"

(9) IRM 3.12.2.8.4.29(3) C] Deleted H&R Block info

(10) IRM 3.12.2.10.4.14 Schedule A, line 13, is reserved for TY17

(11) IRM 3.12.2.12.4.8(1) Deleted ERS input only

(12) IRM 3.12.2.21.2 Added Field 2201T, Enhanced Oil Recovery Credit

(13) IRM 3.12.2.30 Updated TY for F8615

(14) IRM 3.12.2.33 Updated amounts for F8839

(15) IRM 3.12.2.37 updated amounts for Schedule H

(16) IRM 3.12.2.40.4.5(3) Field 50FN1 if transcribed correctly, delete

(17) IRM 3.12.2.52.2(1) Section 70 revised to reflect new F8867

(18) Exhibit 3.12.2-2 CCC G changed to F1040X with change to PECF

(19) Exhibit 3.12.2-2 CCC 1 edited by RICS to generate freeze condition

(20) Exhibit 3.12.2-3 Added RPC D for F8962 with "QSEHRA" notated

(21) Exhibit 3.12.2-4 Added SPC V Coded by MeF for excess SST validation

(22) Exhibit 3.12.2-4 Deleted SPC Q and 4

(23) Exhibit 3.12.2-5 Added Audit Code U edited for F8862 with EIC

(24) Exhibit 3.12.2-5 Added Audit Code 2 edited for F8862 with CTC and ACTC

(25) Exhibit 3.12.2-5 Added Audit Code 3 edited for F8862 with AOC

(26) Exhibit 3.12.2-6 Unallowable Code 6 mileage changed to 53.5

(27) Exhibit 3.12.2-8 Deleted fill-in paragraph 47 and reworded paragraph 41

(28) Exhibit 3.12.2-14 Added Extension due data and EXT-DT

(29) IIPU 17U1077 issued 06-28-2017 RM 3.12.2.4.3.3(3) a - Deleted - or 6 (201703913)

(30) IPU 17U1077 issued 06-28-2017 IRM 3.12.2.5.15(1) ARC A - added EC 189

(31) IPU 17U0805 issued 05-04-2017 IRM 3.12.2.1.7 through 1.9 moved up to maintain existing subsection settings

(32) IPU 17U0799 issued 05-03-2017 IRM 3.12.2.1 Added internal control - program scope information

(33) IPU 17U0799 issued 05-03-2017 IRM 3.12.2.3.6(9) Deleted Note for ACA TPNCs (201702824)

(34) IPU 17U0704 issued 04-18-2017 IRM 3.12.2.2.2.2.9(1) b) Deleted

(35) IPU 17U0704 issued 04-18-2017 IRM 3.12.2.2.2.2.9(2) Added correspondence address changes instruction (201702539)

(36) IPU 17U0648 issued 04-07-2017 IRM 3.12.2.5.8(6) a) Deleted UA 91

(37) IPU 17U0648 issued 04-07-2017 IRM 3.12.2.2.9.1 Revised second correspondence procedures to match IRM 3.12.3.32.3 (201701929)

(38) IPU 17U0547 issued 03-22-2017 IRM 3.12.2.56.4.5(3) Corrected percentages

(39) IPU 17U0547 issued 03-22-2017 IRM 3.12.2.56.4.6(3) Corrected percentages

(40) IPU 17U0547 issued 03-22-2017 IRM 3.12.2.56.4.7(3) Corrected percentages

(41) IPU 17U0493 issued 03-14-2017 IRM 3.12.2.56.4.5(3) Added Code and Edit instructions for converting percentage to 3 digits (201701637)

(42) IPU 17U0493 issued 03-14-2017 IRM 3.12.2.56.4.6(3) Added Code and Edit instructions for converting percentage to 3 digits (201701637)

(43) IPU 17U0493 issued 03-14-2017 IRM 3.12.2.56.4.7(3) Added Code and Edit instructions for converting percentage to 3 digits (201701637)

(44) IPU 17U0433 issued 03-03-2017 IRM 3.12.2.5.13(2) Deleted - when a notation on return indicates the penalty.

(45) IPU 17U0420 issued 03-02-2017 IRM 3.12.2.5.13(1) Moved invalid condition from (3) to (1)

(46) IPU 17U0420 issued 03-02-2017 IRM 3.12.2.5.13(2) Added C&E will edit 50 for penalty. Input as 50 in Field 0211

(47) IPU 17U0357 issued 02-23-2017 IRM 3.12.2.4.3.21(6) Revised RPC V definition

(48) IPU 17U0357 issued 02-23-2017 IRM 3.12.2.2.9.1(1) a) Changed EC 267 to 268 (201700920)

(49) IPU 17U0357 issued 02-23-2017 Exhibit 3.12.2-1 Deleted EC 157 from AC 225

(50) IPU 17U0357 issued 02-23-2017 Exhibit 3.12.2-3 Revised RPC V definition and deleted RPC X

(51) IPU 17U0132 issued 01-20-2017 IRM 3.12.2.52.4.2(2) Added instructions if Field 7001E is blank or, if MeF and Form 8867 is not present, DLSEC

(52) IPU 17U0132 issued 01-20-2017 IRM 3.12.2.52.4.8(2) Added instructions if Field 7003E is blank or, if MeF and Form 8867 is not present, DLSEC

(53) IPU 17U0132 issued 01-20-2017 IRM 3.12.2.52.4.23(2) Added instructions if Field 7009A is blank or, if MeF and Form 8867 is not present, DLSEC

(54) IPU 17U0132 issued 01-20-2017 Exhibit 3.12.2-8 Corrected text in fill-in paragraphs 52, 53, and 54

(55) Various editorial changes were made throughout the IRM, e.g., updating IRM references; correcting spelling, typographical or grammatical errors; updating information that changes often [tax years on forms]; updating website addresses/links; adding or correcting IRM references; formatting; etc.

(56) Updated exemption, standard deduction and additional standard deduction amounts, references to all money amounts, tolerances, limitations, and EIC money amounts throughout IRM.

(57) Updated line numbers for forms and schedules throughout IRM.

(58) Updated tables throughout IRM to make 508 Compliant.

(59) Deleted prior year instructions for TY06 and prior throughout IRM.

(60) IRM 3.12.2.2.3(1) - Added CC QRSEL.

(61) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.2.4(1) - Deleted Description - ERS ACS.

(62) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.2.9(6) - Added new a) when to mark Estate of, Corres. Proc.

(63) IRM 3.12.2.2.9.4(6) - k) Added Exception, SSPND 225, EC 157, SRP.

(64) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.4.3.1.1(1)(3) - Deleted Description and (3) added ITIN in red ink, Check Digits.

(65) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.4.3.1.2(1)(3) - (1) Deleted Description and (3) added ITIN in red ink, Name Control.

(66) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.4.3.3(1) - Deleted Description, Field 01SNC.

(67) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.4.3.4(1) - Deleted Description, Field 01SS.

(68) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.4.3.5(1) - Deleted Description, Field 01NL1.

(69) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.4.3.8(1) - Deleted Description, Field 01C/S.

(70) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.4.3.9(1) - Deleted Description, Field 01ZIP.

(71) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.4.3.11(1) - Deleted Description, Field 01SPC.

(72) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.4.3.12(1) - Deleted Description, Field 01FSC.

(73) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.4.3.15(1) - Deleted Description, Field 01EXV.

(74) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.4.3.16(1) - Deleted Description, Field 01DSI.

(75) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.4.3.20 - Deleted (2) and Moved under (1) as an alphalist, Field 01RCD.

(76) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.4.3.22(1) - Deleted Description, Field 01ACD.

(77) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.4.3.23(1) - Deleted Description, Field 01PT.

(78) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.4.3.24(1) - Deleted Description, Field 01PE.

(79) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.5.14(1) - Deleted Description, Field 02NC>.

(80) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.10.4.30(1) - Deleted Description, UA.

(81) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.12.4.16(1) - Deleted Description, Field 09AR.

(82) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.12.4.17(2) - Added up to, Field 0935.

(83) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.13.1(1) - Added can have up to, Sec. 12.

(84) IRM 3.12.2.14 - Section 13, Schedule E, added Fields 1329G, 1329J, 13PIG, 1329H, 1330, 1331, 1334D, 13PET, 1335, and 1336.

(85) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.14.1(2) - Added up to, Sec. 13.

(86) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.15.4.8(1) - Added this field is transcribed from, Field 14AR.

(87) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.17.4.10(2) - Added this field is transcribed from, Field 17SIV.

(88) IRM 3.12.2.21 - Section 22, Form 3800, deleted Fields 22ESB, 22WEL and 22SCD; added Field 22BCV, and moved Field 22CHS.

(89) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.21(2) -Changed to read should mark box "a" on line 54, Form 1040 when Form 3800 is attached, Form 3800.

(90) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.21.4.14(2) - Added through 11j, Field 22CHS.

(91) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.23.4.1(1) - Deleted Description, Field 24SSN.

(92) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.34.4.1(1) - Deleted Description, Field 39MSS.

(93) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.35.4.1(1) - Deleted Description, Field 40CN1/2/3.

(94) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.35.4.2(1) - Deleted Description, Field 40CT1/2/3.

(95) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.36.4.5(1) - Deleted Description, Field 43RC1.

(96) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.39.4.2(1) - Added This field is transcribed from, Field 4807.

(97) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.40.4.7(6) - Added (6) For TY11 and prior, Field 50PY1/2/3.

(98) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.40.4.8(6) - Added (6) For TY11 and prior, Field 50AE1/2/3.

(99) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.40.4.9(6) - Added (6) For TY11 and prior, Field 50PS1/2/3.

(100) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.40.4.10(6) - Added (6) For TY11 and prior, Field 50PY1/2/3.

(101) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.41.4.1(1) - Added This field is transcribed from, Field 514E.

(102) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.41.4.2(1) - Added This field is transcribed from, Field 514G.

(103) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.1(1) - Added This field is transcribed from, Field 5201.

(104) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.2(1) - Added This field is transcribed from, Field 5202.

(105) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.3(1) - Added This field is transcribed from, Field 5203.

(106) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.4(1) - Added This field is transcribed from, Field 5204.

(107) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.5(1) - Added This field is transcribed from, Field 5205.

(108) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.6(1) - Added This field is transcribed from, Field 5206.

(109) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.7(1) - Added This field is transcribed from, Field 5207.

(110) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.8(1) - Added This field is transcribed from, Field 5208.

(111) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.9(1) - Added This field is transcribed from, Field 5209.

(112) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.10(1) - Added This field is transcribed from, Field 5210.

(113) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.11(1) - Added This field is transcribed from, Field 5211.

(114) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.12(1) - Added This field is transcribed from, Field 5212.

(115) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.13(1) - Added This field is transcribed from, Field 5213.

(116) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.15(1) - Added This field is transcribed from, Field 5214A.

(117) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.16(1) - Added This field is transcribed from, Field 5214B.

(118) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.17(1) - Added This field is transcribed from, Field 5214C.

(119) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.18(1) - Added This field is transcribed from, Field 5215.

(120) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.19(1) - Added This field is transcribed from, Field 5216.

(121) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.20(1) - Added This field is transcribed from, Field 5217A.

(122) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.21(1) - Added This field is transcribed from, Field 5217B.

(123) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.22(1) - Added This field is transcribed from, Field 5218.

(124) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.23(1) - Added This field is transcribed from, Field 5219.

(125) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.24(1) - Added This field is transcribed from, Field 5220.

(126) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.42.4.25(1) - Added This field is transcribed from, Field 5221.

(127) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.43.4.1(1) - Added This field is transcribed from, Field 5406A.

(128) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.43.4.2(1) - Added This field is transcribed from, Field 5406B.

(129) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.45.4(1) - Added This field is transcribed from, Field 58SSN.

(130) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.45.5(1) - Added This field is transcribed from, Field 5801.

(131) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.45.6(1) - Added This field is transcribed from, Field 5803.

(132) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.45.7(1) - Added This field is transcribed from, Field 5804.

(133) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.45.8(1) - Added This field is transcribed from, Field 5805.

(134) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.45.9(1) - Added This field is transcribed from, Field 5807.

(135) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.45.10(2) - Added This field is transcribed from, Field 5808.

(136) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.45.11(2) - Changed to This field is from Part I, line 8, Field 5808V.

(137) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.48.2(1) - Added This field is transcribed from, Field 63SPF.

(138) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.48.3(1) - Added This field is transcribed from, Field 63SPL.

(139) IPU 17U0023 issued 01-03-2017 IRM 3.12.2.48.4(1) - Added This field is transcribed from, Field 63SPN.

(140) IRM 3.12.2.49 - Section 65/66, Form 8941, added Field 65YR2/66YR2. Two Year Declaration.

(141) IRM 3.12.2.52 - Section 70, Form 8867, updated fields to match new Form 8867.

(142) IRM 3.12.2.57 - Section 75, Form 8965, changed line 7a to 7.

(143) Exhibit 3.12.2-1 - Action Codes, 213 changed to EC 348 HCTC and 225 changed to EC 157 SRP.

(144) Exhibit 3.12.2-2 - Computer Condition Codes, CCC, updated Explanations.

(145) Exhibit 3.12.2-3 - Return Processing Codes, RPC, Added RPC 1 and updated Explanations.

(146) Exhibit 3.12.2-4 - Special Processing Codes, SPC, Q is Reserved, U added MeF only 1040NR and 1040NREZ, and updated explanations.

(147) Exhibit 3.12.2-5 - Audit Codes, ADC, updated explanations.

(148) Exhibit 3.12.2-6 - Unallowables, UA, deleted 85 and 91, and updated explanations.

(149) IPU 17U0023 issued 01-03-2017 Exhibit 3.12.2-7 - Added 2016 Credit Reduction States.

(150) Exhibit 3.12.2-8 - IAT Letter 12C fill-ins, deleted #50.

(151) IPU 17U0023 issued 01-03-2017 Exhibit 3.12.2-8 IAT Letter 12C fill-ins, added 50, 51, 52, 53, and 54.

(152) Exhibit 3.12.2-14 - Acronyms - Added new acronyms and explanations.

Effect on Other Documents

IRM 3.12.2, Individual Master File Error Resolution General Instructions, dated November 21, 2016 (effective January 1, 2017) is superseded. This IRM incorporates the following IRM Procedural Updates (IPUs), issued between January 2017 through October 2017, have been incorporated into this IRM; 17U0023, 17U0132, 17U0357, 17U0420, 17U0433, 17U0493, 17U0547, 17U0648, 17U0704, 17U0799, 17U0805, 17U1077, 17U1142, 17U1323.

Audience

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

Effective Date

(01-01-2018)

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 1.2.12, Servicewide Policies and Authorities, 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 preformed 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 preparer’s

    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 1040A and Form 1040EZ.

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

  6. 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 3.12.2.1.6

    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

    • 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. Remove document from pipeline processing.

  3. ERS screen display corrections may also include correcting errors in editing and transcribing error 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, 2018, is Julian Date 105, the 105th day of 2018.

  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 appear 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. ERS working trails will be determined locally by each center.

  3. Working trails can contain the following:

    • SSN

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

  4. 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 before April 22, 2018

    2. The received date of the return if April 23, 2018 and after

    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 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 (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 "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.

    Exception:

    When it's noted that 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 owing to reasons of health

    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 a live signature. Supporting documentation that the appointee has the legal right to file on behalf of the taxpayer may also be required. See IRM 3.12.2.3.20, 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 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

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

    Exception:

    For a return that meets the criteria of an Economic Stimulus Payment, see IRM 3.12.2.3.18, Economic Stimulus Payment Returns.

    1. "Substitute for Return Prepared by IRS" 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 line Sign Here. CSCO will note in the area Sign Here 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).

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 needed for an error code cannot exceed 57 fields. In order to resolve these error codes, instructions have been added to the appropriate error codes to use command code GTSEC to retrieve the section and verify all fields are present and have been transcribed correctly or to add information to a field that does not display on the error code screen and 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 and on enter all appropriate fields.

Money Fields
  1. For Form 1040 and Form 1040A, ISRP transcribes:

    1. All money fields from page 1 in dollars only.

    2. All money fields from page 2 up to and including Other Taxes (Form 1040) or Total Credits (Form 1040A) in dollars only.

    3. All Section 05 fields, and Total Tax from Section 04 in dollars and cents.

    4. All attachment schedules/forms in dollars only unless otherwise noted in the section.

    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 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, to indicate 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 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 Code 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 Data Base on 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.
    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, 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) 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 Accounts 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 3.12.2.10.4(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 that 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 but not only in taxable income and the AGI, can trip error codes 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 (or equivalent).

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

    Note:

    Notice Review who creates the notice, , must inform the taxpayer by including all the TPNCs to inform them 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/ 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 have to be sent 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 you can determine that the originator wishes to have a TPNC sent, you may send 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, Individual Master File (IMF) Error Resolution System processing, 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 2.03 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 the 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. Get each applicable section and check for entries in ERS verified fields, such as Field 01EXV, 02CEV. 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 IMF Error Resolution System Processing
    3.12.37 IMF Error General Instructions
    3.22.3 Individual Income Tax Return - International

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 TY07 and prior; accept taxpayers’ entries.

  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 for that reason cannot be processed.

  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, unattributable 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. 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 that the correspondence is correctly addressed.

    3. When a return is for a minor taxpayer and the parent's name is known, ensure that 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 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 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, Correspondence 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 - o) specific to your campus.

      Note:

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

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

    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 to. 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. Treat missing information on a return as a No Reply, except in the situations in the following list when contact from any area of Submission Processing has previously been made with the taxpayer, including Form 3531 (greenies). Correspond a second time when any of the following exceptions apply and had not been requested during first correspondence:

    1. Form 6251 as required by EC 268.

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

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

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

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

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

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

    8. If EC 028, EC 029 or, EC 038 displays after Code and 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 h), 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 EC 348 (HCTC) displays after first correspondence was issued and the taxpayer has provided a complete, issue second correspondence. SSPND 213 and prepare the applicable Form 3696-A for LTR 1263C.

  4. If ACA Error Code 068, 100, 101, 190, 191, 192, 193, 194, 195, 196, 197, 198, 199, 270, or 344 displays after first correspondence and the taxpayer provided a complete reply, issue second correspondence. SSPND 224 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.

  5. If the exceptions in (1) through (4) do not apply, 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, (not a valid code)
    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 field (and that field only). 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. Check for 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 44 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 44 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 100 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 3.12.3.23.4.3 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. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      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, or
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      SSPND 331 for frivolous arguments listed in IRM 3.12.2.3.3, Frivolous Filer

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

Accounts Over 999 Million Dollars

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

  2. Suspend the returns with Action Code 620 and route them via overnight mail to the following address:
    Accounting Control/Services Operation
    201 West River Center Blvd., Stop 21
    Covington, KY. 41011

    Note:

    Centers that use CMODE in processing electronic returns refer all manual refunds to the parent center of the return according to the file location code, or center code, of the DLN. To that end those centers print Section 01 of the return, note" manual refund" on the print. collect the prints, and fax them daily to the parent center.

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

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡

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

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

  6. Consistency errors in the range 5XX and 6XX may appear too in consequence 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 or 611 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 Submission Processing (CSPC)
    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 1040NR, U.S. Nonresident Alien Income Tax Return

    • Form 1040NR-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, 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 1040NR 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 1040NR or Form 1040NR-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 7 or 21, Form 1040), FEC noted on line 7, 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 TY 1995 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. Code and Edit will X any amount on the return where the taxpayer has written Section 692(d)(2).

    Note:

    If the KITA/KIA coordinator determines that the return is not eligible under Sec 692(d)(2), Code and Edit should "X" the amount claimed to the right of the "Other Payments" line.

  4. ERS should enter the computer's amount for tax in Field 0444V and assign TPNC 650.

    Note:

    "X" 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 should SSPND 640 (Suspense Reject 640) in order 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 have to 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 CCC M and P 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 Form 1040 or restore in full the wages on line 7 of Form 1040 or 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
    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 for non-remittance returns and Action Code 611 for remittance returns.

  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 that 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 in order for the form to be processed through the system.

    Exception:

    If missing information, correspond before converting the return.

    Exception:

    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.

    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 should be converted. See your Lead Tax Examiner 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 611 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 remittance returns, refer to IRM 3.12.37.

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. SSPND 211 for all missing information. Do not convert returns before corresponding.

    Note:

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

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 TY13 and before may require a manual computation. Follow the applicable prior-year procedures.

  2. 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.

  3. 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.

    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).

  3. Assign Unallowable Code 79 to re-entry returns when the document is being re-entered because of a release credit.

    Note:

    Additional information can be found in IRM 3.12.37, IMF General Information.

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.

Economic Stimulus Payment Returns

  1. The IRS will send tax returns filed solely for the sake of claiming the Economic Stimulus Payment back to the taxpayers. Other tax returns for 2007 will be processed as regular returns.

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 2515-013 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, 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 dead taxpayer.

    1. If the surviving spouse filed the return (FSC 2), no documentation is needed.

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

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

      Note:

      To be considered complete, Form 1310 must meet the following three requirements.
      • Signature must be present.
      • 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.
      • 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. If the date of death is not present in the return, see IRM 3.12.3.6.3.3 (1) through (8) for assignment of computer condition codes.

  2. If the return is an economic stimulus return see IRM 3.12.2.3.18.

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 send 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 3.12.2.3.23 before adjusting return.

  2. If the income and withholding you excluded belongs to a dependent for whom the taxpayer takes a dependent exemption, 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 3.12.2.3.23 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 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 enter line 38 amount in Fields 0321, 0322, and 0337. Enter amounts in the appropriate fields to reflect attached forms/schedules (for example Schedule C, Field 0312) 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 Enter the line 22 amount in Fields 03OTI 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 periods (page 1 or page 2) 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
    01EXV 01EXV 01EXV Exemption Code Verified ERS Input Only
    01DSI 01DSI 01DSI Dependency Status Indicator Page 1 of tax return
    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 Credit Indicator 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 Credit Indicator 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 Credit Indicator 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 Credit Indicator 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
    01PT 01PT 01PT Preparer's TIN Signature area
    01PE 01PE 01PE Preparer's EIN Signature area
    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. 01ADD

    5. 01C/S

    6. 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 entry).

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. Invalid Conditions - 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.

    - 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.

    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. Invalid Conditions - 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 and 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 spaces 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). Though it is at least possible that a primary taxpayer would have an ATIN, it's unlikely, and for that reason it isn't described above. Like the other TINs it's nine spaces 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 01EXV if applicable. If the taxpayer indicates that he or she is Amish or Mennonite, don't enter RPC "O" or "0" (zero) in the first position of Field 01EXV. Do enter RPC B 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 the fourth and fifth digit is "66" (9XX-66-XXXX) 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 number. 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 01EXV if applicable.

Field 01SNC, Secondary Name Control
  1. The Secondary Name Control is a four position field valid that consists 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. Invalid Conditions - 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 filled with an alpha or hyphen or are not 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. SE Tax (Self Employment) 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. Invalid conditions. This field will be invalid if fewer than 9 numeric characters are present.

  4. Correction procedures. 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. Invalid Conditions - 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. Correction Procedures - 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 Smith.

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

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

    Example:

    01NL1 JOHN A<WHITE<& JANE B GREEN

    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

    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

    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

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

    Example:

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

    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

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

    Example:

    01NL1 JOHN A<WHITE<DECD

    No first name (only last name). Enter a hyphen preceding the less-than (<) sign.

    Example:

    01NL1 -<WHITE

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

    Example:

    01NL2 C/O DON B BLUE

    For Minor/Child Name Line, Enter Minor after last name.
    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 U.

    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-098XX
    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. Invalid Conditions - 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 it appears that a field was transcribed incorrectly. GTSEC 01 and correct all fields in the section when it appears to be 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 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. Invalid Conditions. 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 201712 or more than current year and month. 196212 to 201711
    B] 1040A 201712 only calendar year 197212 to 201612
    C] 1040EZ 201712 only calendar year 198212 to 201612
  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, 201802, 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 error:

    The tax period is... The form is... Then...
    A] 201712 (current), 1040/A/EZ, blank field 01TXP; the programming generates 201712.
    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/A/EZ, refer to Lead Tax Examiner. See the exception.

    Exception:

    Refer to EC 260 when the return is an early filed decedents. (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. Invalid Conditions. This field will be invalid if other than the following:

    1. Form 1040 (Doc Code 11, 12, 21 or 22) is other than 3, 7, 8, 9, A, B, C, E, F, G, J, K, L, M, N, P, S, T, V 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, 08 or 28) 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 an 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 an exemption for a spouse who has no income and who is not filing a return

    • Code 7: Head of Household, for taxpayers who don't take a dependent exemption but:
      • write a child's name on line 4 of Form 1040 or Form 1040A, or
      • show a qualifying child in Form 2441, Form 8814, or Schedule EIC.

      Note:

      Taxpayers who write in a name on line 4 don't have to provide a TIN for the dependent . 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. Invalid Conditions. 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. Correction Procedures. 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 by 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 Code (CCC) Field is an alpha and/or numeric character 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. Form 1040/A is edited in the center of the return, to the right of the "Single" box.

    2. 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 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, 08 or 28) - 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 multiple CCCs are entered, CCC 3 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. Exemption Code(s) support the exemption(s) claimed by the taxpayer. Refer to the exemption code chart located n the ERS Job Aid 2515-015.

  2. 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 5 through 8 are edited in the right margin by the printed description of dependency.

      Note:

      Correction to Field 01EXC should be made for editing and transcription errors only.

  3. 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)

  4. Any time 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 releasing the claim of exemption for that child

  5. 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.

  6. 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).

  7. 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.

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

Field 01EXV, Exemption Verified, 8 positions
  1. Exemption Verified Field is for ERS input only and is used by ERS Tax Examiners to make changes to exemptions claimed by the taxpayer. Field 01EXV will appear as blank. When entering data in Field 01EXV, all 8 positions must be entered.

  2. Invalid Condition - This field will be invalid when positions 1 and 2 are other than 1 or 0 (zero).

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

  2. 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.)

  3. 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 TY17 - TY15 , not to exceed the basic standard deduction for the filing status claimed.

    3. The computer will not allow any dependent exemptions.

    Note:

    On any return when DSI 1 is valid and Field 01EXV is being used, enter 0 (zero) in positions 1 and 3 through 8 of Field 01EXV.

  4. Invalid Conditions - This field will be invalid if other than blank or 1.

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 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 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. If EC 252 displays, assign TPNC 604.

  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. If there is an indication of Died on the return:

    Note:

    There must be an indication that the child was born alive; an exemption cannot be claimed for a stillborn child.

    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 line 6c 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 Credit Indicator, 1 position
  1. Dependent Child Tax Credit Indicator Field is used for TY98 and later. The taxpayer writes an X or a check in column 6c(4) to indicate a dependent is eligible child for Child Tax Credit. An entry by the taxpayer will be transcribed in the field as a 1. The default value for the field is 0 (zero).

  2. These fields will be invalid if they contain values other than 0 (zero) or 1.

  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. 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

    2. 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 - CSCO, Exam, ICT, CIS, AM, for instance-should appear in the date stamp too, or

    3. The received date is stamped in the lower left corner of the return by Lockbox.

    4. 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, in IRM 3.12.2.4.3.20, for determining the received date if the other function has not provided a received date.

  3. Invalid conditions. The entry in this field 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 (156 if a leap year) 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 3.12.2.4.3.20.1 for determining a valid post office mark or IRM 3.12.2.4.3.20.2 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 dates generated by FAX machines on original returns.

  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:

    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 20180417 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. Form 1040: near the right of line 22.

    2. Form 1040A: near the right of line 15.

    3. Form 1040EZ: near the right of line 10.

  3. This field will be invalid as follows:

    1. Form 1040 (Doc Code 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, 08, or 28) 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. Check for coding and transcription errors and correct, if needed.

    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/A/EZ.

01ACD Audit Codes
  1. Audit codes are used to alert Examination to certain conditions in the return. Audit codes appear in the bottom-right margin of page 1 of the return and are edited by Code and Edit.

  2. Invalid Conditions. The valid values for the field appear below. Any other values are invalid.

    1. Form 1040 (doc code 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. Correction procedures. Compare the entry in the field with the entry 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 01PT Preparer TIN
  1. The Preparer's TIN (P-TIN) Field is located in the preparer's section at the bottom of page 2 of Form 1040 and Form 1040A and at the bottom of page 1 of Form 1040EZ. The PTIN is a nine-character alphanumeric code. The first character is P or S. The remaining eight characters are numbers.

  2. Invalid conditions. This field will be invalid if the preparer's TIN is present and it meets any of the these conditions:

    • is all zeros: 000000000

    • is all nines: 999999999

    • has fewer than nine characters

  3. Correction Procedures. 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 01PT.
    B] the PTIN is all zeros or all nines delete the entry from Field 01PT.
Field 01PE Preparer EIN
  1. Preparer's EIN Field is located in the preparer portion at the bottom of page 2, Form 1040/A (or bottom of page 1, Form 1040EZ).

  2. Invalid Conditions - This field will appear 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. Correction Procedures - 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 01PEF, Presidential Election Campaign Fund Code
  1. Presidential Election Campaign is found in the upper right corner of 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. Invalid Conditions - If Field 01PEF is other than blank, 1, or 2.

  4. Correction Procedures - 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 TY13 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.

Fields and Money Amounts

  1. All fields are positive. Money amounts are entered in dollars only.

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
    02PAV 02PAV 02PAV Primary Age Verified ERS input only
    02SAV 02SAV 02SAV Secondary Age Verified ERS Input Only
    02CEV 02CEV   Child Tax Credit Total Eligible Verified 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"
    02TXV 02TXV 02TXV Unallowable Tax-Verified Near bottom of form, box labeled "Tax Verified"
    02RPD 02RPD 02RPD Returns 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

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 (capital letter): signifying the request for NAP validation

Field 02PAV, Primary Age Verified

  1. This is an ERS input only field used when the primary taxpayer's age in Field 01PYB> is blank or all zeros.

  2. The field is three spaces long, and only numeric values are valid.

  3. Use of the field:

    1. Enter R in Field 02RI and transmit.

    2. If Field 01PYB> remains blank or filled with zeros, look for the taxpayer's date of birth with INOLES.

    3. Determine the taxpayer's age on the first day of the tax year and enter it in Field 02PAV.

Field 02SAV, Secondary Age Verified

  1. This is an ERS input only field used when the secondary taxpayer's age in Field 01SYB> is blank or all zeros.

  2. The field is three spaces long, and only numeric values are valid.

  3. Use of the field:

    1. Enter R in Field 02RI and transmit.

    2. If Field 01SYB> remains blank or filled with zeros, look for the taxpayer's date of birth with INOLES.

    3. Determine the taxpayer's age on the first day of the tax year and enter it in Field 02PAV.

Field 02CEV, Total Children Eligible for Child Tax Credit Verified

  1. This field is for ERS input only and is used only when the programming cannot accurately figure the total number of children eligible for Child Tax Credit, because, for instance, there are more than 4 eligible children or eligible children beyond the fourth transcribed dependent.

  2. The field is two spaces long, and only numeric values are valid.

  3. The entry in the field must be two spaces long. Enter any number smaller than 10 with a leading zero: 01, 03, 07, 09, for example.

  4. Correct field errors according to the table below.

    If... Then...
    A] the number of children eligible for the Child Tax Credit in Field 01TCE> is correct, delete the figure in Field 02CEV.
    B] the number of children eligible for the Child Tax Credit in Field 01TCE> is incorrect,
    1. Determine the correct number of children eligible for the Child Tax Credit.

    2. Enter the number of children eligible for the Child Tax Credit in Field 02CEV.

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, or Examination on Form 3471, Edit Sheet. 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 02TXV

  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 0728 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 reply and is sometimes called the correspondence received date.

  2. Correct any coding and transcriptions errors.

  3. Correct any invalid format to the date YYYYMMDD. Y=year, M=month, and D=day.

  4. An entry in the field is invalid in any of these conditions.

    • The day of the month (DD) exceeds 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. Do not enter the return processed date when

    • a complete reply is received before the due date of the return≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or

    • the correspondence was issued in error.

    Note:

    CCC U and the RPD must not both be present in the same return

  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 3.12.2.4.3.20.

    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 a 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 20180417 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 (i.e., $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. Form 1040 - Data through line 43, plus any applicable lines from line 48 through 55 and lines 64 through 74.

    2. 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 TY17 and later, when all of the following exist:

    1. Adjusted Gross Income is present and Total Tax Taxpayer, Amount Owed/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 74 (line 46, Form 1040A), enter the withholding amount in Field 05BDR 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
    04ABI You are unable to arrive at the taxpayer's total for Age/Blind deduction(s), Refer to EC 252.
    01DSI You are unable to determine if the taxpayer is limiting the Standard Deduction or Exemption amount, Refer to EC 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. (Do nothing if amount is less than what is reported on the return.)
    Section 03 The taxpayer used SSA/Medicare Wages instead of Withholding Wages, Change the amount to reflect the Withholding 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.

    Section 03 Gross Social Security is being claimed,
    1. Research CC IRPTR, if available.

    2. Verify and correct the amount, if applicable.

    Field 0564 (1040), orField 0540 (1040A), orField 0507 (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, Income And Adjustments

  1. Section 03 includes the following information:

    • Income

    • Adjustment items

  2. Entries are used to calculate the Adjusted Gross Income for Form 1040, Form 1040A and Form 1040EZ.

Fields and Money Amounts

  1. All fields are positive, with the exception of the following list, that can be positive or negative:

    • Taxable Interest

    • Schedule C, D, E, or F

    • Form 4797

    • Other Income

    • Adjusted Gross Income

Error Record Format Section 03

  1. Section 03 consists of the following fields:

    Form 1040 Form 1040A Form 1040EZ Field Name Field Location
    0307 0307 0301 Wages Line 7 (1040)
    Line 7 (1040A)
    Line 1 (1040EZ)
    0308A 0308A 0302 Taxable Interest Line 8a (1040)
    Line 8a (1040A)
    Line 2 (1040EZ)
    0308B 0308B 03TEI Tax-Exempt Interest Line 8b (1040)
    Line 8b (1040A)
    Line 2 (dotted portion to the left 1040EZ, ERS Input Only)
    0309A 0309A   Ordinary Dividends Line 9a (1040)
    Line 9a (1040A)
    0309B 0309B   Qualified Dividends Line 9b (1040)
    Line 9b (1040A)
    0310     State Income Tax Refund Line 10 (1040)
    0311     Alimony Received Line 11 (1040)
    0312     Combined Schedule C Profit/Loss Line 12 (1040)
      0310   Total Capital Gain Distribution Line 10 (1040A)
    0313     Schedule D Profit/Loss Line 13 (1040)
    0314     Other Gains/Losses Line 14 (1040)
    0315A 0311A   Total IRA Distribution Line 15a (1040)
    Line 11a (1040A)
    0315B 0311B   Taxable IRA Distribution Line 15b (1040)
    Line 11b (1040A)
    0316A 0312A 03GPA Total Pensions and Annuities Line 16a (1040)
    Line 12a (1040A)
    ERS Input Only (1040EZ)
    0316B 0312B 03TPA Taxable Pensions and Annuities Line 16b (1040)
    Line 12b (1040A)
    ERS Input Only (1040EZ)
    0317     Schedule E Profit/loss Line 17 (1040)
    0318     Combined Schedule F Profit/Loss Line 18 (1040)
    0319 0313 0303 Taxable Unemployment Compensation Line 19 (1040)
    Line 13 (1040A)
    Line 3 (1040EZ)
    0320A 0314A   Gross Social Security Line 20a (1040)
    Line 14a (1040A)
    0320B 0314B   Taxable Social Security Line 20b (1040)
    Line 14b (1040A)
    0320V 03TSV   Taxable Social Security Verified ERS Input Only
    0321 03OTI   Other Income Line 21 (1040)
    ERS Input Only (1040A)
    0322 0315 03TOT Total Income Line 22 (1040)
    Line 15 (1040A)
    Line 4 (1040EZ)
    03RTA 03RTA 03RTA Form 982 Indicator Edited in the left margin of Form 1040/1040A/1040EZ across from line 23/16/4
    03EDU 03EDU   Educator Expenses Line 23 (1040)
    Line 16 (1040A) (1040/A ERS Input only)
    0324     Reservist/Other Business Expenses Line 24 (1040)
    0325     Health Saving Account Deduction Line 25 (1040)
    0326     Moving Expenses Line 26 (1040)
    0327     Deduction for SE Tax Line 27 (1040)
    0327V     Deduction for SE Tax Verified ERS Input Only
    0328     SE Retirement Plans Deduction Line 28(1040)
    0329     Self Employed Health Insurance Line 29 (1040)
    0330     Penalty on Saving Withdrawal Line 30 (1040)
    03SSN     Alimony SSN Line 31b (1040)
    0331A     Alimony Paid Line 31a (1040)
    0332 0317   IRA Deduction Line 32 (1040)
    Line 17 (1040A)
    0332V 03317V   IRA Deduction Verified ERS Input Only
    0333 0318   Student Loan Interest Deduction Line 33 (1040)
    Line 18 (1040A)
    0333V 0318V   Student Loan Interest Deduction Verified ERS Input Only
    03TUI 03TUI   Tuition and Fees Deduction Line 34 (1040)
    Line 19 (1040A) (1040/A ERS Input only)
    0335     Domestic Production Activities Deduction Line 35 (1040)
    03MSA     Archer MSA Deduction Line 36 (beside the entry on line 36 of 1040)
    03ADJ     Other Adjustments Line 36 (beside the entry on line 36 of 1040)
    0336 0320   Total Adjustments Line 36 (1040)
    Line 20 (1040A)
    0337 0321 0304 Adjusted Gross Income Line 37 (1040)
    Line 21 (1040A)
    Line 4 (1040EZ)

Invalid Conditions

  1. Fields are invalid if not all numeric.

    Exception:

    See Alimony SSN Field for specific invalid conditions for that field only.

Correction Procedures

  1. Correction procedures for Section 03 fields follow.

Field 0307 and 0301, Wages
  1. 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.

  2. If the taxpayer reports earnings from household employment "HSH" on line 7 of Form 1040 or Form 1040A or line 1 of Form 1040EZ enter SPC 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.

Field 0308A and 0302, Taxable Interest
  1. When a negative amount is claimed as taxable interest on Form 1040EZ, SSPND 610/611 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. (Refer to EC 218.)

Field 0308B and 03TEI, Tax-Exempt Interest
  1. Accept the taxpayer's entry. (Refer to Error Code 218.)

Field 0309A, Ordinary Dividends
  1. Dividends and distributions are reported to the taxpayer on Form 1099-DIV. The taxpayer should enter the total of ordinary dividends from Box 1a of Form 1099-DIV on line 9a of Form 1040/A. Taxpayers are not required to attach Form 1099-DIV to their return. (Refer to EC 218.)

Field 0309B, Qualified Dividends
  1. Dividends and distributions are reported to the taxpayer on Form 1099-DIV. The taxpayer should enter the total of qualified dividends from box 1b of Form 1099-DIV on line 9b of Form 1040/A. Taxpayers are not required to attach Form 1099-DIV to their return. (Refer to EC 218.)

Field 0310, State Income Tax Refund (Form 1040)
  1. Refer to EC 218.

Field 0311, Alimony Received (Form 1040)
  1. Correction Procedure - ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (Refer to EC 218.)

Field 0312, Combined Schedule C Profit or Loss (Form 1040)
  1. Refer to EC 202.

Field 0313, Schedule D Profit or Loss (Form 1040)
  1. Refer to EC 204.

Field 0310, Capital Gain Distributions (Form 1040A)
  1. Field 0310 is the amount for Total Capital Gains Distributions from line 10 of Form 1040A. (Refer to EC 218.)

Field 0314, Other Gains or Losses (Form 1040)
  1. Refer to EC 218.

Field 0315A and 0311A, Total IRA Distributions
  1. Refer to EC 218.

Field 0315B and 0311B, Taxable IRA Distributions
  1. Refer to EC 218.

Field 0316A and 0312A, Total Pensions and Annuities, Form 1040 and Form 1040A
  1. Refer to EC 218.

Filed 03GPA, Total Pensions and Annuities, Form 1040EZ
  1. This field is ERS input only on Form 1040EZ (Field 03GPA). (Refer to EC 218.)

Field 0316B and 0312B, Taxable Pensions and Annuities, Form 1040 and Form 1040A
  1. Refer to EC 218.

Field 03TPA, Taxable Pensions and Annuities, Form 1040EZ
  1. This field is ERS input only on Form 1040EZ (Field 03TPA). (Refer to EC 218.)

Field 0317, Schedule E Income or Loss
  1. Refer to EC 206.

Field 0318, Combined Schedule F Profit or Loss
  1. Refer to EC 208.

Field 0319, 0313, and 0303, Taxable Unemployment Compensation
  1. This field represents the taxpayer's Taxable Unemployment Compensation. Taxpayers who received an overpayment of unemployment compensation, during the tax year, and repaid it, during the tax year, are instructed to do the following (Refer to EC 218):

    1. Subtract their repayment amount from the total received and enter on line 19.

    2. Note "Repaid" and the amount to the left of line 19.

  2. Alaska Permanent Fund Dividend (APFD) recipients and taxpayers receiving "Income Tax Energy Rebates" from New Mexico and Oklahoma are instructed to claim these amounts as Taxable Unemployment Compensation.

  3. Supplemental Unemployment Benefits (sub-pay) should be reported on line 7 as wages (for TY87 and later).

Field 0320A and 0314A, Gross Social Security Benefits
  1. Refer to EC 214.

Field 0320B and 0314B, Taxable Social Security Benefits
  1. For TY94 and later, social security can be taxed up to 85%.

  2. For TY93 and prior, up to 50% was taxable.

  3. Refer to EC 214.

Field 0320V and 03TSV, Taxable Social Security Verified
  1. This field is for ERS input only. It is used when the computer cannot correctly compute Taxable Social Security. (Refer to EC 214.)

Field 0321 and 03OTI, Other Income
  1. This field is located on line 21, Form 1040. On Form 1040A, Field 03OTI, is for ERS input only. (Refer to EC 218.)

Field 0322, 0315, and 03TOT, Total Income
  1. This field is located on line 22, Form 1040 (line 15, Form 1040A; line 4, Form 1040EZ). (Refer to EC 218.)

Field 03RTA, Form 982 Indicator
  1. This is a one-digit numeric field.

  2. This field will be invalid if other than 0 or 1.

  3. Code and Edit edits "1" in the left margin of Form 1040/1040A/1040EZ, across from line 23/16/4, when Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (And Section 1082 Basis Adjustment), is present.

Field 03EDU, Educator Expense
  1. This field is located on line 23, Form 1040 (line 16, Form 1040A). (Refer to EC 220.)

Field 0324, Reservist and Other Business Expenses
  1. This field is located on line 24, Form 1040. (Refer to EC 229.)

Field 0325, Health Savings Account
  1. This field is located on line 25, Form 1040. (Refer to EC 226.)

Field 0326, Moving Expenses
  1. This field is located on line 26, Form 1040. (Refer to EC 229.)

Field 0327, Deduction for SE Tax
  1. This field is located on line 27, Form 1040. (Refer to EC 211.)

Field 0327V, Deduction for SE Tax Verified
  1. This field is for ERS input only. It is used when the computer cannot correctly compute Deduction for SE Tax. (Refer to EC 211.)

Field 0328, SE Retirement Plans Deduction
  1. This field is located on line 28, Form 1040. (Refer to EC 222.)

Field 0329, Self Employed Health Insurance Deduction
  1. This field is located on line 29, Form 1040. (Refer to EC 229.)

Field 0330, Penalty on Savings Withdrawal
  1. This field is located on line 30, Form 1040. (Refer to EC 229.)

Field 03SSN, Alimony SSN
  1. This field is located on line 31b. (Refer to EC 078.)

Field 0331A, Alimony Paid
  1. This field is located on line 31a, Form 1040.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (Refer to EC 229.)

Field 0332 and 0317, IRA Deduction
  1. This field is located on line 32, Form 1040 (line 17, Form 1040A). (Refer to EC 222.)

Field 0332V and 0317V, IRA Deduction Verified
  1. This field is for ERS input only. It is used when the computer cannot correctly compute IRA Deduction. (Refer to EC 222.)

Field 0333 and 0318, Student Loan Interest Deduction
  1. This field is located on line 33, Form 1040 (line 18, Form 1040A). (Refer to EC 224.)

Field 0333V and 0318V, Student Loan Interest Deduction Verified
  1. This field is for ERS input only. It is used when the computer cannot correctly compute Student Loan Interest Deduction. (Refer to EC 224.)

Field 03TUI, Tuition and Fees Deduction
  1. For TY16 and prior, this field is located on line 34, Form 1040 (line 19, Form 1040A). (Refer to EC 225.)

Field 0335, Domestic Production Activities Deduction
  1. This field is located on line 35, Form 1040. (Refer to EC 228.)

Field 03MSA, Archer MSA Deduction
  1. This field is located on the dotted portion of line 36, Form 1040. (Refer to EC 227.)

Field 03ADJ, Other Adjustments
  1. This field is located on the dotted portion of line 36, Form 1040. (Refer to EC 229.)

Field 0336 and 0320, Total Adjustments
  1. Refer to EC 229.

Field 0337, 0321, and 0304, Adjusted Gross Income (AGI)
  1. Refer to EC 230.

Section 04, Tax Computations, Statutory Credits, Other Taxes

  1. Section 04 includes the following information:

    • Taxable Income

    • Tax

    • Statutory Credits

    • Other Taxes

Fields and Money Amounts

  1. All fields in Section 04 must be positive.

Error Record Format Section 04

  1. Section 04 consists of the following fields:

    Form 1040 Form 1040A Form 1040EZ Field Name Field Location
    04ABI 04ABI   Age/Blind Indicator Line 39a (1040)
    Line 23a (1040A)
    04LSV 04LSV   Limited Standard Deduction Verified ERS Input Only (1040, 1040A)
      04SD3   MFS Itemized Deduction Indicator ERS Input Only (1040A)
    0443 0427 0406 Taxable Income Amount Line 43 (1040)
    Line 27 (1040A)
    Line 6 (1040EZ)
    04TIV 04TIV 04TIV Taxable Income Amount Verified ERS Input Only (1040, 1040A, 1040EZ)
    04AF     Additional Forms 8814 Attached ERS Input Only (1040)
    04AT     Additional Forms 8814 Tax ERS Input Only (1040)
    04HCR     Form 8885 Health Coverage Recapture Amount ERS Input Only (1040)
    0444 0428 0410 Tentative Tax Line 44 (1040)
    Line 28 (1040A)
    Line 10 (1040EZ)
    0444V 0428V 0410V Tentative Tax Verified ERS Input Only (1040, 1040A, 1040EZ)
    0445     Alternative Minimum Tax Line 45 (1040)
    0446 0429   Advance Premium Tax Credit Repayment Line 46 (1040)
    Line 29 (1040A)
    0446V 0429V   Advance Premium Tax Credit Repayment Verified (ERS only) ERS Input Only (1040, 1040A)
    0448     Foreign Tax Credit Line 48(1040)
    0449 0431   Credit for Child and Dependent Care Line 49 (1040)
    Line 31 (1040A)
      0432   Credit for Elderly Line 32 (1040A)
    0450 0433   Education Credits Line 50 (1040)
    Line 33 (1040A)
    0450V 0433V   Education Credits Verified ERS Input Only
    (1040, 1040A)
    0451 0434   Retirement Savings Contribution Credit Line 51 (1040)
    Line 34 (1040A)
    0451V 0434V   Retirement Savings Contribution Credit Verified ERS Input Only
    (1040, 1040A)
    0452 0435   Child Tax Credit Line 52 (Form 1040)
    Line 35 (1040A)
    0452V 0435V   Child Tax Credit Verified ERS Input Only
    (1040, 1040A)
    0453     Residential Energy Credit Line 53 (1040)
    0454     Form 3800, 8801, and Other Credits Line 54 (1040)
    0454A     General Business Credits Line 54 (1040)
    0454B     Credit for Prior Year Minimum Tax Line 54 (1040)
    0454C     Credit for Elderly Line 54 (1040)
    04ADC     Adoption Credit ERS Input Only (1040)
    04MIC     Mortgage Interest Credit ERS Input Only (1040)
    04QED     Form 8936 Qualified Plug-in Electric Drive Credit ERS Input Only (1040)
    04AMC     Form 8910 Alternative Motor Vehicle Credit ERS Input Only (1040)
    04OSC     Other Statutory Credits ERS Input Only (1040)
    0455 0436   Total Statutory Credits Line 55 (1040)
    Line 36 (1040A)
    04SCV 04SCV   Total Statutory Credits Verified ERS Input Only (1040, 1040A)
    0457     Combined Self-Employment Tax Line 57 (1040)
    0458     Unreported Social Security and Medicare Tax from Forms 4137 and 8919 Line 58 (1040)
    0459     Tax on Early Distributions Line 59 (1040)
    0460A     Combined Household Employment Tax Amount Line 60a (1040)
    0460B     First-Time Homebuyer Credit Repayment Line 60b (1040)
    04COV 04COV 04COV Health Care Responsibility Coverage Checkbox To the left of
    Line 61 (1040)
    Line 38 (1040A)
    Line 11 (1040EZ)
    0461 0438 0411 Health Care Responsibility Penalty Amount Line 61 (1040)
    Line 38 (1040A)
    Line 11 (1040EZ)
    0461V 0438V 0411V Health Care Responsibility Penalty Verified ERS Input Only
    04LIR     Form 8611 Recapture ERS Input Only (1040)
    04RTX     Recapture Tax ERS Input Only (1040)
    04USS     Uncollected SST Tax on Tips Line 62c
    0462     Other Taxes Line 62 (1040)
    0463 0439 0412 Total Tax IMF Line 63 (1040)
    Line 39 (1040A)
    Line 12 (1040EZ)
    0463V 0439V 0412V Total Tax IMF Verified ERS Input Only (1040, 1040A, 1040EZ)

Invalid Conditions

  1. Fields are invalid if not all numeric.

Correction Procedures

  1. Correction procedures for Section 04 fields follow.

Field 04ABI Age or Blindness Indicator
  1. Age/Blindness Indicator (ABI) Field is 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 coded 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. Check for any of the following conditions when Code and Edit did not edit the ABI and the taxpayer did not check an ABI box, but it appears that the taxpayer is claiming an Additional Standard Deduction ($1,550 for FSC 1, 4, or 7; $1,250 for FSC 2, 3, 5 or 6):

    • An entry for Schedule R.

    • The taxpayer indicates 65 or older near the ABI boxes.

    • Certification of blindness is attached.

    • An entry is present in line 39a (line 23a, 1040A) Total box.

Field 04LSV, Limited Standard Deduction Verified
  1. This field is for ERS input only for Form 1040/A.

  2. Field 04LSV will be used when all the following exist:

    1. DSI code is 1.

    2. Earned income is less than the Basic Standard Deduction ($6,350).

    3. Earned income is present on the "Other Income" line (Field 0321, Form 1040 or Field 03OTI, Form 1040A). (Refer to EC 252.)

    Note:

    If the taxpayer has included partnership income from Schedule E in the computation of the standard deduction accept the taxpayer's entry and enter it in Field 04LSV.

Field 04SD3, MFS Itemized Deduction Indicator
  1. This field is for ERS input only for Form 1040A. Field 04SD3 sets standard deduction computer to zero. (Refer to EC 252.)

  2. Invalid Conditions. The entry in the field is valid only if it's 0 (zero) or 1.

  3. Correction Procedures. Enter 1 in Field 04SD3 to set the standard deduction computer to zero when the FSC is 3 and the taxpayer has checked box 23b.

Fields 0443, 0427, and 0406, Taxable Income Amount
  1. The transcribed field has a computer-generated underprint. Refer to EC 252 and 265.

Field 04TIV, Taxable Income Amount Verified
  1. The field Taxable Income Amount Verified is for ERS input only. Use this field when the taxpayer has used a special computation or the computer cannot arrive at the correct taxable income. Refer to EC 252 and 265.

Field 04AF, Additional Forms 8814 Attached
  1. The field 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 (Sections 40, 41, and 42).

    • Field 04AF holds the number of Forms 8814 for which there is no transcribed section. For instance, if four Forms 8814 are attached, the first three are transcribed as Section 40, 41, and 42 and you will enter the number 1 in Field 04AF. If there are five Forms 8814, you will enter the number 2 in Field 04AF.

  2. Correction procedures. Make sure 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 04AF. If twelve or more Forms 8814 are present, enter the number 9 in Field 04AF. Refer to EC 265.

Field 04AT, Additional Forms 8814 Tax
  1. The field Additional Forms 8814 Tax is for ERS input only. This field is valid for Form 1040 only.

  2. Correction procedures. Enter the additional tax amount in Field 04AT from the Forms 8814 not in Sections 40, 41, and 42. Refer to EC 265.

Field 04HCR, Form 8885 Health Coverage Recapture
  1. The Form 8885 Health Coverage Recapture amount is for ERS input only on Form 1040.

  2. Taxpayers are instructed to check box c on line 44 of Form 1040 and write "HCTC" with an amount next to the line. Refer to EC 265.

Fields 0444, 0428, and 0410, Tentative Tax
  1. Tentative tax is transcribed from line 44 of Form 1040 (line 28 of Form 1040A; line 10 of Form 1040EZ). Refer to EC 265.

Fields 0444V, 0428V, and 0410V, Tentative Tax Verified
  1. The field Tentative Tax Verified is for ERS input only. Use this field when the taxpayer has used a special computation or the computer cannot arrive at the correct tax. Refer to EC 260 and 265.

Field 0445, Alternative Minimum Tax, Form 6251
  1. Alternative minimum tax (AMT) is transcribed from line 45 of Form 1040. Refer to EC 267.

Field 0446 and 0429, Advance Premium Tax Credit
  1. Advance Premium Tax Credit field is a numeric, positive and dollars only field. Refer to EC 190.

Field 0446V and 0429V, Advance Premium Tax Credit Verified (ERS only)
  1. Advance Premium Tax Credit verified is ERS input only. Use this field when the computer cannot arrive at the correct tax. Refer to EC 190.

Field 0448, Foreign Tax Credit, Form 1116
  1. Foreign Tax Credit is transcribed from line 48 of Form 1040. Refer to EC 277 and 310.

Fields 0449 and 0431 Credit for Child and Dependent Care Expenses, Form 2441
  1. The Credit for Child and Dependent Care Expenses is transcribed from line 49 of Form 1040 or line 31 of Form 1040A. Refer to EC 279.

Fields 0450 and 0433, Education Credits, Form 8863
  1. The Education Credit is transcribed from line 50 of Form 1040 of line 33 of Form 1040A. Refer to EC 283, 284, and 285.

Fields 0450V and 0433V, Education Credits Verified
  1. The field Education Credits Verified is for ERS input only. Use this field when the taxpayer has used a special computation or the computer cannot arrive at the correct credit. Refer to EC 283, 284, and 285.

Field 0451 and 0434, Retirement Savings Contribution Credit, Form 8880
  1. The Retirement Savings Contribution Credit is transcribed from line 51 of Form 1040 or line 34 of Form 1040A. Refer to EC 288 and 310.

Field 0451V and 0434V, Retirement Savings Contribution Credit Verified
  1. The field Retirement Savings Contribution Credit Verified is for ERS input only. Use it to enter the allowable credit when the computer cannot compute the amount accurately-usually because the disallowance of exemptions caused the field for the year of birth to show 00000000. Refer to EC 288.

Field 0452 and 0435, Child Tax Credit
  1. The Child Tax Credit is transcribed from line 52 of Form 1040 or line 35 of Form 1040A. The Child Tax Credit is valid for TY98 and later. Refer to EC 290.

Field 0452V and 0435V Child Tax Credit Verified
  1. Child Tax Credit Verified Field is for ERS input only. Use this field when the taxpayer has used a special computation and the computer cannot arrive at the correct credit amount. (Refer to EC 290.)

Field 0453, Residential Energy Credit, Form 5695
  1. Residential Energy Credit is transcribed from Form 1040, line 53. Refer to EC 291.

Field 0454, Form 3800 and 8801, and Other Credits
  1. Forms 3800, 8801, and Other Credits are transcribed from Form 1040, line 54. Refer to EC 299, 300, and 302.

Field 0454A, General Business Credits, Form 3800
  1. General business credits are transcribed in Field 0454A from line 54 of Form 1040. The taxpayer checks box a on line 54 of Form 1040. Refer to EC 299, 302, and 310.

Field 0454B, Credit for Prior-Year Minimum Tax, Form 8801
  1. Credit for Prior Year Minimum Tax amount is transcribed in Field 0454B when the taxpayer checks box b on line 54 of Form 1040. Refer to EC 302, 308, and 310.

Field 0454C and 0432, Credit for the Elderly or Disabled, Schedule R
  1. Form 1040 for TY09 and later - The taxpayer is instructed to check box c on line 54 of Form 1040 and write "Sch R" beside line 54. Enter the credit amount from Schedule R in Field 0454C.

  2. Form 1040A - The credit from Schedule R is transferred to line 32. Enter the amount in Field 0432.

  3. If "CFE" is noted and Schedule R is not attached, SSPND 211.

  4. Refer to EC 282.

Field 04ADC, Adoption Credit, Form 8839
  1. Field 04ADC is for use by ERS only. The taxpayer checks box c on line 54 "Other credits" and writes "Form 8839" to the right of the box. Refer to ECs 294 and 299.

  2. The non-refundable adoption credit is in effect for TY17 through TY12 and TY09 to TY97. For TY11 and TY10 the credit was refundable only.

Field 04MIC, Mortgage Interest Credit - Form 8396
  1. Mortgage Interest Credit field is for ERS input only. The taxpayer checks box c on line 54, Form 1040, and writes "Form 8396" . Refer to ECs 292, 299 and 310.

Field 04QED, Qualified Plug-in Electric Drive Credit, Form 8936
  1. Field 04QED is for ERS input only. The taxpayer checks box c on line 54, Form 1040, and writes "Form 8936" . Refer to ECs 299 and 302.

Field 04AMC, Alternative Motor Vehicle Credit, Form 8910
  1. Field 04AMC is for ERS input only. The taxpayer checks box c on line 54, Form 1040, and writes "Form 8910" . Refer to ECs 299 and 302.

Field 04OSC, Other Statutory Credits
  1. Other Statutory Credits Field is for ERS input only. The taxpayer is instructed to include this amount on line 55, Form 1040. Refer to ECs 300, 302, and 310.

Fields 0455 and 0436, Total Statutory Credits
  1. Total Statutory Credits are transcribed from Form 1040, line 55 (Form 1040A, line 36). Refer to EC 310.

Field 04SCV, Total Statutory Credits Verified
  1. Total Statutory Credits Verified Field is for ERS input only. Use this field when the computer cannot arrive at the correct amount of Total Statutory Credits. Refer to EC 310.

Field 0457, Combined Self-Employment Tax
  1. Combined Self-Employment Tax is transcribed from Form 1040, line 57. Refer to EC 209.

Field 0458, Combined Unreported SST and Medicare Tax - Forms 4137 and 8919
  1. Combined Unreported SST and Medicare Tax is transcribed from Form 1040, line 58. Refer to EC 314.

Field 0459, Combined Tax on Retirement Plans
  1. Combined Tax on Retirement Plans is transcribed from Form 1040, line 59. Refer to EC 318.

Field 0460A, Combined Household Employment Taxes - Schedule H
  1. Combined Household Employment Taxes is transcribed from Form 1040, line 60a. Combined Household Employment Taxes Field is valid for TY95 and later. Refer to ECs 322, 324 and 326.

Field 0460B, First-Time Homebuyer Credit Repayment
  1. First-Time Homebuyer Credit Repayment is transcribed from Form 1040, line 60b. Refer to EC 329.

Field 04COV, Health Care Responsibility Coverage Checkbox
  1. Field 04COV is a one character numeric field and is coded based on whether or not the box to the left of line 61, Form 1040; line 38 Form 1040A; or line 11, Form 1040EZ is checked.

  2. The valid codes are as follows:

    1. "1" - box checked.

    2. "0 (zero)" - box not checked.

Fields 0461, 0438, and 0411, Health Care Responsibility Penalty Amount
  1. Health care responsibility amount is transcribed from line 61, Form 1040 (line 38, Form 1040A, or line 11, Form 1040EZ).

  2. The money amount field is positive and dollars only.

  3. Refer to EC 334.

Fields 0461V, 0438V, and 0411V, Health Care Responsibility Penalty Amount Verified
  1. Health Care Responsibility Penalty Amount Verified is an ERS input only field and is used when IRS computes the Shared Responsibility Payment for the taxpayer. Refer to EC 157.

Field 04LIR, Form 8611 Recapture
  1. Form 8611 Recapture Field is ERS input only. Taxpayers are instructed to note "LIHCR" (Form 8611) online 62 of Form 1040. Refer to EC 333.

Field 04RTX, Recapture Taxes
  1. Field 04RTX includes "Other Taxes" on line 62 of Form 1040. See EC 333.

Field 04USS, Uncollected Tax on Reported Tips
  1. Uncollected Tax on Reported Tips Field is a "write-in" tax on line 62c, Form 1040, and is identified as "Uncollected Tax on Tips" or "UT" . Code & Edit will edit 62c and a money amount above the word code(s).

  2. Refer to Form W-2, box 12, Deferral Codes A, B, M, and N. Enter the amount in Field 04USS. For Form 1040A, include the uncollected tax amount in Total Tax and enter the result in the Total Tax Verified Field. Do not convert to Form 1040. Refer to EC 333.

Field 0462, Other Taxes
  1. Other Taxes is transcribed from Form 1040, line 62. Refer to EC 333.

Fields 0463, 0439, and 0412, Total Tax IMF
  1. Total Tax IMF is transcribed from Form 1040, line 63 (Form 1040A, line 39 , Form 1040EZ, line 12 ). Refer to EC 334.

Fields 0463V, 0439V, 0412V, Total Tax Verified
  1. The field total tax verified is ERS input only. Use this field when the computer cannot arrive at the correct total tax. Refer to EC 260.

Section 05, Payments, Balance Due and Refund

  1. Section 05 includes the following information:

    • Cash Credits and Payments

    • Balance Due/Refund and Estimated Tax Election

    • Pre-Determined Estimated Tax Penalty

    • Third Party Designee Data

    • Preparer's Data

Fields and Money Amounts

  1. All fields are positive, with the exception of Field 05BDR (Balance Due/Refund) which may be positive or negative. The money amounts are entered in dollars and cents.

Error Record Format Section 05

  1. Section 05 consists of the following fields:

    Form 1040 Form 1040A Form 1040EZ Field Name Field Location
    0564 0540 0507 Withholding Line 64 (1040)
    Line 40 (1040A)
    Line 7 (1040EZ)
    0565 0541   Estimated Tax Payments Line 65 (1040)
    Line 41 (1040A)
    0566A 0542A 0508A Earned Income Credit Line 66a (1040)
    Line 42a (1040A)
    Line 8a (1040EZ)
    0566B 0542B 0508B EIC Nontaxable Combat Pay Amount Line 66b (1040)
    Line 40b (1040A)
    Line 8b (1040EZ)
    05EIV 05EIV 05EIV EIC Earned Income Verified ERS-input only
    0567 0543   Additional Child Tax Credit Line 67 (1040)
    Line 43 (1040A)
    0567V 0543V   Additional Child Tax Credit Verified ERS-input only (1040, 1040A)
    0568 0544   Refundable Education Credit Line 68 (1040),
    Line 44 (1040A)
    0568V 0544V   Refundable Education Credit Verified ERS-input only
    0569 0545   Reconciled Premium Tax Credit Amount Line 69 (1040)
    Line 45 (1040A)
    0569V 0545V   Reconciled Premium Tax Credit Amount Verified ERS-input only (1040, 1040A)
    0570 05EXT 05EXT Form 4868 Payment Line 70 (1040)
    ERS-input only (1040A, 1040EZ)
    0571 05EXS 05EXS Excessive Social Security and RRTA Tax Line 71 (1040)
    ERS-input only (1040A, 1040EZ)
    0572     Form 4136 Fuel Tax Credit Line 72 (1040)
    0573     Form 2439 and Other Credits Line 73 (1040)
    0573A     Regulated Investment Company Credit Line 73a (1040)
    05HCC     Health Coverage Tax Credit ERS-input only (1040)
    05OTH 05OTH 05OTH Other Payment or Credit Amount ERS-input only
    line 73d (1040)
    05TYP 05TYP 05TYP Other Payment or Credit Type ERS-input only
    line 73d (1040)
    05PSC     Form 1040C Credit ERS-input only (1040)
    0574 0546 0509 Total Payments Line 74 (1040)
    Line 46 (1040A)
    Line 9 (1040EZ)
    05BDR 05BDR 05BDR Balance Due Refund Line 76a or 78 (1040)
    Line 48a or 50 (1040A)
    Line 13a or 14 (1040EZ)
    0577 0549   Credit Elect Line 77 (1040)
    Line 49 (1040A)
    05ETP 05ETP   Pre-determined ES Tax Penalty Line 79 (1040)
    Line 51 (1040A)
    05TPA 05TPA 05TPA Third-Party Authorization Indicator Edited by the Yes or No box in the third-party designee area.
    05TPN 05TPN 05TPN Third-Party Designee Name Third-party designee area
    05TPI 05TPI 05TPI Third-Party Designee ID Number Third-party designee area
    05PTN 05PTN 05PTN Preparer Telephone Number Preparer Telephone Number
    05EMW 05EMW 05EMW E-File Mandate Waiver Code Page 2 of tax return
    05PC 05PC 05PC Preparer's Code Edited in the Preparer's SSN/PTIN area

Invalid Conditions

  1. All of the fields in Section 05 will appear invalid if not all numeric, except for Fields 05TPN, 05TPI, 05PTN, and 05PC.

Correction Procedures

  1. Correction procedures for Section 05 fields follow.

Field 0564/0540/0507, Withholding
  1. This field is transcribed from line 64 of Form 1040, (line 40, Form 1040A, or line 7, Form 1040EZ).

  2. Enter the amount from attachments, if applicable, when withholding is blank, dash (-) or 0 (zero). (Refer to EC 118, and EC 355.)

Field 0565/0541, Estimated Tax Payments
  1. This field is transcribed from line 65 of Form 1040, (line 40, Form 1040A). Refer to EC 355 and EC 360.

Field 0566A/0542A/0508A, Earned Income Credit (EIC)
  1. This field is transcribed from line 66a of Form 1040 (line 42a, Form 1040A, or line 8a, Form 1040EZ). Refer to EC 336, 337, and 338.

  2. 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 is attached), Code and Edit will edit $888.00 on the EIC line to generate ERS correction. Refer to EC 338.

Field 0566B/0542B/0508B, EIC Nontaxable Combat Pay
  1. This field is transcribed from line 66b of Form 1040 (line 42b, Form 1040A, or line 8b, Form 1040EZ).

Field 05EIV, Earned Income Verified
  1. This field is for ERS input only and is used to verify Earned Income Credit when the computer cannot arrive at the correct computation. (Refer to EC 337.)

Field 0567/0543, Additional Child Tax Credit
  1. This field is transcribed from line 67, Form 1040 (line 43, Form 1040A). This field is applicable for TY98 and later. (Refer to EC 340.)

Field 0567V/0543V, Additional Child Tax Credit Verified
  1. This field is for ERS input only, valid for TY98 and later, and is used when the computer cannot arrive at the correct amount for Additional Child Tax Credit. (Refer to EC 340.)

Field 0568/0544, Refundable Education Credit Form 8863
  1. This field is transcribed from line 68, Form 1040 (line 44, Form 1040A). It is valid for TY09 and later. (Refer to EC 342.)

Field 0568V/0544V, Refundable Education Credit Verified
  1. This field is for ERS input only, is valid for TY09 and later and is used when the computer cannot arrive at the correct amount for Refundable Education Credit. (Refer to EC 342.)

Field 0569/0545, Reconciled Premium Tax Credit
  1. This field is transcribed from line 69, Form 1040 (line 45, Form 1040A).

Field 0569V/0545V, Reconciled Premium Tax Credit Amount Verified
  1. This field is for ERS input only and is used when the computer cannot arrive at the correct amount for Reconciled Premium Tax Credit.

Field 0570/05EXT, Form 4868 Payment
  1. The amount is transcribed from line 70, Form 1040. On Form 1040A/1040EZ, Field 05EXT is for ERS input only. The taxpayer is instructed to write "Form 4868" and the payment amount to the left of the Total Payments line. (Refer to EC 355.)

Field 0571/05EXS, Excess Social Security/RRTA
  1. The amount is transcribed from line 71, Form 1040. On Form 1040A/1040EZ, Field 05EXS is for ERS input only. The taxpayer is instructed to write "Excess SST" and the payment amount to the left of the Total Payments line. (Refer to ECs 121 and 355.)

Field 0572, Form 4136, Fuel Tax Credit
  1. This field is transcribed from line 72, Form 1040. Refer to EC 347.

Field 0573, Refundable Credit from Form 2439 and Other Credits
  1. The taxpayer reports these refundable credits on line 73 of Form 1040 and checks the box there to identify the credit. Refer to EC 348.

    1. Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, box a.

    2. For TY17 - 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 0573A, 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 line 73. The taxpayer is also instructed to attach Copy B of Form 2439 and to check box a on line 73, Form 1040.

Field 05OTH, Other Payment or Credit Amount
  1. This field is numeric only, must be a positive amount, and dollars and cents. ERS input only and is found on line 73. Refer to EC 355.

Field 05TYP, Other Payment or Credit Type
  1. This field can be alphanumeric and is ERS input only. Refer to EC 355.

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 line 73, Form 1040. (Refer to EC 348.)

Field 05PSC, 1040C Credit
  1. This field is for 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.

    Note:

    Form 1040C serves as a payment voucher for aliens leaving the country before the tax return is due.

Field 0574/0546/0509, Total Payments
  1. This field is transcribed from line 74, Form 1040 (line 46, Form 1040A, or line 9, Form 1040EZ). Refer to EC 355.

Field 05BDR, Balance Due/Refund
  1. Field 05BDR 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 line 76a, Form 1040, (line 48a, Form 1040A, or line 13a, Form 1040EZ).

    2. Positive (meaning amount due to IRS) amount if transcribed from line 78, Form 1040, (line 50, Form 1040A, or line 14, Form 1040EZ).

    Note:

    ISRP will enter the amount as a refund if the only entry by the taxpayer is on the Overpaid Line (line 75, Form 1040 or line 47, Form 1040A).

Field 0577/0549, Estimated Tax Election
  1. This field is transcribed from line 77, Form 1040 (line 49, Form 1040A).

  2. Estimated Tax Election Field is used to indicate the amount of overpayment that the taxpayer wants to allocate toward the next year’s tax liability.

Field 05ETP, Pre-Determined Estimated Tax Penalty
  1. This field is transcribed from line 79, Form 1040 (line 51, Form 1040A).

  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.

Field 05TPA, Third-Party Authorization Indicator
  1. This field is transcribed from the third party designee area of page 2, Form 1040/1040A and page 1 of Form 1040EZ.

  2. Use the following list to correct Field 05TPA:

    1. If taxpayer checks the Yes box, enter 1.

    2. If taxpayer checks No box, enter 0 (zero).

    3. If taxpayer checks both boxes or does not check a box, enter 0 (zero).

Field 05TPN, Third-Party Designee Name
  1. This field is transcribed from the Third Party Designee area on page 2, Form 1040/1040A, or page 1, Form 1040EZ. The taxpayer is instructed to enter the name of the person designated to discuss their tax return. This field length is 35 characters in length.

Field 05TPI, Third-Party Designee ID Number
  1. This field is transcribed from the Third Party Designee area on page 2, Form 1040/1040A, or page 1, Form 1040EZ. The taxpayer is instructed to enter five-digits, alpha or numeric that he/she chooses as their ID Number.

Field 05PTN, Preparer Telephone Number
  1. This field is transcribed from under the Paid Preparer's information in the lower right hand margin of page 2, Form 1040/1040A, or page 1, Form 1040EZ.

  2. This is a ten-digit field that can contain alpha, numeric and blank entries.

Field 05EMW, 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 page 2, from the exception box checked by the preparer on Form 8948.

  3. This field is invalid if other than blank, zero, or 1 through 6. Code 1 corresponds to box 1, code 2 to box 2, code 3 to box 3, code 4 to box 4, code 5 to box 5, and code 6 to 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 05PC, 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 the Preparer's EIN (page 2, Form 1040/1040A, or page 1, Form 1040EZ).

  2. This field will be invalid if the Preparer's Code is other than H, P, or R.

  3. Compare the entry in Field 05PC 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 05PC.
    B] Other than the IRS, but reviewed by IRS, Enter R in Field 05PC.
Field 05ITN, ID Theft Personal ID Number
  1. This field will be Invalid if less than six numeric characters.

  2. Correction Procedures:

    1. This field will only display as a field error. This field does not display when using GTSEC 05.

    2. This information is found on page 2 in the signature area of the return to the right of Spouse’s occupation.

    3. Review and correct transcription.

    4. If Field 05ITN redisplays, enter six zeroes (0) in the field.

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 the request for direct deposit does not meet the tests, 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 Field Location
    06RTN Routing and Transit Number (RTN) Line 76b of Form 1040
    Line 48b of Form 1040A
    Line 13b of Form 1040EZ
    06DAN Depositor Account Number (DAN) Line 76d of Form 1040
    Line 48d of Form 1040A
    Line 13d of Form 1040EZ
    06TDA Type Depositor Account Line 76c of Form 1040
    Line 48c of Form 1040A
    Line 13c of Form 1040EZ

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 check 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 attempting to request a direct deposit, don’t DLSEC 06

  2. Ensure that Field 06DAN correctly reflects the taxpayer's entry.

    Caution:

    When a Section 06 Priority II Error occurs there is a high likelihood that 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 76b or 76d (48b or 48d, Form 1040A; 13b or 13d, Form 1040EZ), delete the entries in Fields 06RTN and 06DAN.

    Note:

    Allow direct deposit if a voided check is attached and the name matches the name on the return. Enter all applicable data for the section.

  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 characters must be present; blanks aren't valid entries. If fewer than 9 characters are present, the computer will generate a zero in each unfilled field. The resulting number isn't the taxpayer's entry and isn't valid.

  3. Verify and correct any transcription errors.

  4. Delete the data in Field 06RTN when non-numeric characters or fewer than 9 characters are present in Field 06RTN or the routing number has more than nine characters.

  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.

  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 or S based on the checking or savings box 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.

  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.

Fields and Money Amounts

  1. The fields in this section must be positive.

Error Record Format, Section 07

  1. 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 only
    0705 State and Local Income/Sales Tax Line 5
    07SLI State and Local Income/Sales Tax Indicator ERS only
    0706 Real Estate Tax Line 6
    0707 Personal Property Taxes Line 7
    0708 Other Taxes Line 8
    0709 Total Tax Deduction Line 9
    0710 Financial Home Mortgage Interest Line 10
    0711 Personal Seller Home Mortgage Interest Line 11
    0712 Deductible Points Line 12
    07MIP Qualified Mortgage Insurance Premium Line 13
    0714 Investment Interest Line 14
    0715 Total Interest Deduction Line 15
    0716 Cash Contributions Line 16
    0717 Other Contributions Line 17
    0718 Carryover Contributions Line 18
    0719 Total Contributions Line 19
    0720 Total Casualty/Theft Loss Line 20
    0721 Unreimbursed Employee Expense Line 21
    0724 Gross Miscellaneous Deductions Line 24
    0727 Net Miscellaneous Deductions Line 27
    0728 Other Miscellaneous Deductions Line 28
    07OTG Other Than Gambling ERS only
    0729 Total Itemized Deductions Line 29
    0729V Total Itemized Deductions Verified ERS only
    07IEI Itemized Deduction Election Indicator Line 30

Invalid Condition

  1. A 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 use by ERS only and is used whenever the computer cannot correctly compute Schedule A, Medical and Dental Expenses (e.g., certain prior-year returns).

Field 07SLI, State and Local Income/Sales Tax Indicator (ERS INPUT ONLY)
  1. Field 07SLI indicates when the taxpayer has opted to use the deduction for General Sales Tax (checked box 5b) instead of State and Local Income Taxes. (Refer to EC 236.) Correct coding in Field 07SLI 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 0705, State and Local Income/Sales Tax
  1. This field is transcribed from line 5, Schedule A. Refer to EC 236.

Field 0706, Real Estate Taxes
  1. This field is transcribed from line 6, Schedule A. Refer to EC 236.

Field 0707, Personal Property Taxes
  1. This field is transcribed from line 7, Schedule A. Refer to EC 236.

Field 0708, Other Taxes
  1. This field is transcribed from line 8, Schedule A. Refer to EC 236.

Field 0709, Total Tax Deduction
  1. The field is transcribed from line 9, Schedule A. Refer to EC 236.

Field 0710, Home Mortgage Interest and Points
  1. This field is transcribed from line 10, Schedule A, and represents home mortgage interest paid to financial institutions. Refer to EC 238.

Field 0711, Home Mortgage Interest, not on Form 1098
  1. This field is transcribed from line 11, Schedule A, and represents mortgage interest paid to individuals. Refer to EC 238.

Field 0712, Deductible Points
  1. This field is transcribed from 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. For TY17, Schedule A, line 13, is reserved.

  2. For TY16 and prior, line 13, Schedule A, represents qualified mortgage insurance premiums. Refer to EC 238.

Field 0714, Investment Interest
  1. This field is transcribed from line 14, Schedule A and represents Investment Interest paid. Refer to EC 238.

Field 0715, Total Interest Deduction
  1. This field is transcribed from line 15, Schedule A. Refer to EC 238.

Field 0716, Cash Contributions
  1. The field is transcribed from line 16, Schedule A and represents cash contributions. Refer to EC 240.

Fields 0717, Other Contributions, Not By Check or Cash
  1. This field is transcribed from 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 0718, Carryover Contributions
  1. This field is transcribed from line 18, Schedule A. Refer to EC 240.

Field 0719, Total Contributions
  1. This field is transcribed from line 19, Schedule A. Refer to EC 240.

Field 0720, Total Casualty or Theft Loss
  1. This field is transcribed from line 20, Schedule A. Refer to EC 242

Field 0721, Unreimbursed Employee Expenses
  1. This field is transcribed from line 21, Schedule A. Refer to EC 244.

Field 0724, Gross Miscellaneous Deduction
  1. This field is transcribed from line 24, Schedule A. Refer to EC 244.

Field 0727, Net Miscellaneous Deduction
  1. This field is transcribed from line 27, Schedule A. Refer to EC 244.

Field 0728, Other Miscellaneous Deductions
  1. This field is transcribed from line 28, Schedule A, is "gambling losses" , 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 use by ERS only. Field 07OTG is used when an entry "other than gambling" is present on the line 28, Schedule A for other miscellaneous deductions and total itemized deductions. Refer to EC 246.

Field 0729, Total Itemized Deductions
  1. This field is transcribed from line 29, Schedule A.

  2. This field is the total of field 0704, 0709, 0715, 0719, 0720, 0727, 0728, and 07OTG. Refer to EC 246.

  3. TY13 and later, total itemized deductions are limited by adjusted gross income.

Field 0729V, Total Itemized Deductions Verified
  1. This field is for use by ERS only.

  2. There are situations in which programming cannot accurately compute total itemized deductions on Schedule A. In these circumstances, compute Schedule A and enter the correct total itemized deduction in Field 0729V.

    1. TY13 and later, total itemized deductions are limited by adjusted gross income.

    2. When the taxpayer has included amounts on line 28 of Schedule A that are other than gambling losses, and/or casualty and theft losses, see IRM 3.12.3.23.7.5(8).

Field 07IEI, Itemized Election Indicator
  1. This field is transcribed from line 30, Schedule A.

  2. The valid values for this field are 0 (zero) and 1.

  3. Enter 1 in Field 07IEI when the taxpayer has checked the box on line 30 and used an amount on line 40, Form 1040, that is less than the standard deduction for the filing status, but greater than zero.

    Note:

    Certain states require taxpayers to itemize deductions on their federal returns if they itemize on their state returns. When electing this option, the taxpayer is instructed to check the box on line 30.

  4. If Form 4563, Form 2555, or Form 2555-EZ is present, SSPND 651 (AUSPC only, SSPND 610). The state of Idaho requires the taxpayer to itemize if they are excluding income for Form 4563 (Exclusion of Income For Bona Fide Residents in American Samoa) or Form 2555 (Foreign Earned Income). (Refer to EC 252.)

  5. TY04 and before. Taxpayers will write "IE" to the left of the entry for Itemized Deduction or Standard Deduction on Form 1040 when electing this option.

Unallowables
  1. Unallowable Codes 33 through 46 affect itemized deductions. See Exhibit 3.12.2-6.

  2. Correction procedures. Enter the two-digit code and the unallowable amount when any unallowable conditions are found on Schedule A. Enter in the appropriate fields in Section 02.

  3. Enter Unallowable Code 98, for the third code, with no amount and explain the additional codes and amounts in the memo portion of Form 3471 when more than 3 unallowables are identified. (Only three (3) codes may be used.) Or, if applicable, follow local procedures for Unallowable Code 98.

Section 08, Schedule B

  1. Schedule B, Interest and Ordinary Dividends, is used to list interest and dividend Income. Part III of Schedule B is used to answer questions concerning foreign accounts and trusts.

Fields and Money Amounts

  1. All fields in this section must be positive.

Error Record Format Section 08

  1. Section 08 consists of the following fields:

    Form 1040 Form 1040A Field Name Field Location
    08INT 08INT Schedule B Interest Line 2
    0803 0803 Excludable Savings Bond Interest Line 3
    08DIV 08DIV Schedule B Dividends Line 6
    08FAQ 08FAQ Foreign Accounts Indicator Line 7a, question 1
    08FIN 08FIN FINCEN Required Code Line 7a, question 2

Invalid Conditions

  1. A field is in error if not all numeric.

Correction Procedures

  1. Correction procedures for Section 08 fields follow.

Field 08INT, Schedule B Gross Interest
  1. Add any adjustments indicated in Part I (Schedule B) to the line 2 amount. Enter the result in Field 08INT. Allowable adjustments are

    • "Nominee Distribution"

    • "Accrued Interest"

    • "Tax Exempt Interest"

Field 0803, Excludable Savings Bond Interest
  1. This amount represents excluded interest from Series EE bonds, issued by the Bureau of Public Debt after 1989. This interest is excludable for education expenses incurred by the taxpayer for him/herself, spouse, or dependent. (Refer to EC 160.)

  2. The interest from the Series EE bonds should be included in line 2 before deducting the excludable amount on line 3.

  3. When there appears to be an inconsistency or Form 8815, Exclusion of Interest from Series EE and I U.S. Savings Bonds, is not attached, SSPND 211.

Field 08DIV, Schedule B Gross Dividends
  1. The gross dividend amount in Field 08DIV of Schedule B, Part II, indicates any adjustment to dividends for "Nominee Distribution" .

Field 08FAQ, Foreign Accounts Code (Form 1040 and Form 1040A)
  1. This field is coded from the answer to question one at line 7a of Schedule B:"At any time during 2017, did you have a financial interest in or signature authority over a financial account...."

  2. The valid codes are 0, 1, 2, and 3.

    • 0: the default value

    • 1: the box Yes checked

    • 2: the box No checked

    • 3: no box checked, entered only by ERS

Field 08FIN, FINCEN Required Code (Form 1040, 1040A)
  1. This field is coded from the answer to question two at line 7a of Schedule B:

  2. The valid codes are 0, 1, and 2.

    • 0: no box checked, the default value

    • 1: the box Yes checked

    • 2: the box No checked

Sections 09, 10, and 11, Schedule C/C-EZ

  1. Schedule C, Profit or Loss From Business, is used by taxpayers to report income and expenses from a business or profession. (Refer to EC 202.)

  2. Schedule C-EZ, Net Profit From Business, is used to report a profit from business when the taxpayer meets both the following conditions:

    • Expenses are $5,000 or less.

    • Cash Method of Accounting was used by the taxpayer.

  3. Three Schedules C/C-EZ may be filed with a return. The first Schedule C/C-EZ displays as Section 09, the second as Section 10 and the third as Section 11.

    Note:

    For the remainder of this text Schedule C/C-EZ will be referred to as Section 09; however, all correction procedures will apply equally to Sections 09, 10 and 11.

Fields and Money Amounts

  1. All fields must be positive with the exception of Field 0903 and 0906, which can be either positive or negative.

Error Record Format of Section 09, 10, and 11

  1. Section 09 comprises the fields in the table below.

    Form 1040 Field Name Field Location Schedule C Field Location Schedule C-EZ
    09PBD Principal Business Item A Item A
    09SSN Social Security Number Upper Right Hand Corner Upper Right Hand Corner
    09NCS NAICS Code Item B Item B
    09BNM Business Name Item C Item C
    09EIN Employer Identification Number Item D Item D
    09AMC Accounting Method Code Item F  
    09FRS First Time Code Item H  
    09FRQ Schedule C Form 1099 Required Code Item I Item F
    09FFD Schedule C Form 1099 Filed Code Item J Item G
    09STI Statutory Employee Indicator ERS input only ERS input only
    0901 Gross Receipts Line 1 Line 1
    0902 Returns and Allowances Line 2  
    0903 Net Gross Receipts Line 3  
    0904 Cost of Goods Sold Line 4  
    0906 Other Income Line 6  
    0909 Car and Truck Expenses Line 9  
    0913 Depreciation Line 13  
    0915 Insurance Line 15  
    0916A Mortgage Interest Line 16a  
    0917 Legal and Professional Services Line 17  
    0918 Office Expenses Line 18  
    0921 Repairs and Maintenance Line 21  
    0924A Travel Line 24a