3.12.2 Individual Master File Error Resolution General Instructions 3.12.2.1 Program Scope and Objectives 3.12.2.1.1 Background 3.12.2.1.2 Authority 3.12.2.1.3 Responsibilities 3.12.2.1.4 Program Management and Review 3.12.2.1.5 Program Controls 3.12.2.1.6 Terms and Acronyms 3.12.2.1.7 Related Resources 3.12.2.2 General Information 3.12.2.2.1 Introduction 3.12.2.2.2 General Guidelines 3.12.2.2.3 Organization of Text 3.12.2.2.4 Correction Requirements 3.12.2.2.5 Perfecting the Tax Return and Error Screen Display 3.12.2.2.5.1 Document Locator Number 3.12.2.2.5.1.1 Julian Date 3.12.2.2.5.1.2 Sequence Number 3.12.2.2.5.1.3 Missing Blocks/Returns 3.12.2.2.5.1.4 Mixed Data on Paper Returns 3.12.2.2.5.2 Corrections 3.12.2.2.5.2.1 Internal Use Forms 3.12.2.2.5.2.2 Working Trails 3.12.2.2.5.2.3 Attachments to Returns 3.12.2.2.5.2.4 Signature Requirements 3.12.2.2.5.2.5 Fields Not Visible in Error Code 3.12.2.2.5.2.6 Missing Schedules 3.12.2.2.5.2.7 Money Fields 3.12.2.2.5.2.8 Clear Code C and 000 3.12.2.2.5.2.9 Entity Information 3.12.2.2.5.2.10 State Income Tax Returns/Payments or Contributions to Reduce the Public Debt 3.12.2.2.6 Command Codes 3.12.2.2.7 Error Resolution System (ERS) Action Code 3.12.2.2.8 Revalidating With OLE 3.12.2.2.9 Taxpayer Notice Code (TPNC) 3.12.2.2.10 Computer Assisted Review of Error Resolution System (CARE) 3.12.2.2.10.1 CARE Reports 3.12.2.2.10.2 Generating CARE Review/Pull Listing 3.12.2.2.10.3 CARE Review Procedures 3.12.2.2.11 Computer Assisted Pipeline Review (CAPR) 3.12.2.2.12 Correspondence Procedures 3.12.2.2.12.1 Second Correspondence 3.12.2.2.13 Types of Errors 3.12.2.2.13.1 Priority I Errors, Action Code 3.12.2.2.13.2 Priority II Errors, Section Errors 3.12.2.2.13.3 Priority III Errors, Validity Errors, including Field Errors 3.12.2.2.13.4 Priority IV Errors, Math and Consistency Errors (Error Codes) 3.12.2.2.13.5 Error Codes in Series 500 and 600, Changes in Statutory Credits 3.12.2.3 Special Procedures 3.12.2.3.1 Secured/Photocopied/Second Returns 3.12.2.3.2 Automated Substitute for Return (ASFR) 3.12.2.3.3 Frivolous Filer 3.12.2.3.4 Accounts Over 999 Million Dollars 3.12.2.3.5 Injured Spouse Allocation 3.12.2.3.6 Innocent Spouse Relief Request, Form 8857 3.12.2.3.7 International Returns 3.12.2.3.8 KITA: Killed in Terrorist Action 3.12.2.3.9 Military Spouse Residency Relief 3.12.2.3.10 Combat Zone Returns 3.12.2.3.11 Natural Disaster and Emergency Relief Program 3.12.2.3.12 Conversion of Returns 3.12.2.3.13 Misblocked Returns 3.12.2.3.14 Prior-Year Returns 3.12.2.3.15 Re-Entry (Reinput) Returns 3.12.2.3.16 Taxpayer Advocate Service 3.12.2.3.17 Electronic Returns 3.12.2.3.18 Deceased Taxpayer 3.12.2.3.19 Multiple Filers on the Same Return 3.12.2.3.20 Multiple Tax Periods on the Same Return 3.12.2.3.21 Tax Return for an ITIN, Income and Withholding Statements for SSN 3.12.2.4 Section 01, Entity And Miscellaneous Information 3.12.2.4.1 Error Record Format, Section 01 3.12.2.4.2 Entity Information 3.12.2.4.3 Correction Procedures 3.12.2.4.3.1 Field 01PNC, Check Digits/Name Control 3.12.2.4.3.1.1 Check Digits 3.12.2.4.3.1.2 Name Control 3.12.2.4.3.2 Field 01PS, Primary Social Security Number 3.12.2.4.3.3 Field 01SNC, Secondary Name Control 3.12.2.4.3.4 Field 01SS, Secondary Social Security Number 3.12.2.4.3.5 Field 01NL1, First Name Line 3.12.2.4.3.6 Field 01NL2, Second Name Line 3.12.2.4.3.7 Field 01ADD, Street Address 3.12.2.4.3.8 Field 01C/S, City and State 3.12.2.4.3.9 Field 01ZIP, ZIP Code 3.12.2.4.3.10 Field 01TXP, Tax Period 3.12.2.4.3.11 Field 01SPC, Special Processing Code 3.12.2.4.3.12 Field 01FSC, Filing Status Code 3.12.2.4.3.13 Field 01CCC, Computer Condition Codes (CCC) 3.12.2.4.3.14 Field 01EXC, Exemption Codes, 8 positions 3.12.2.4.3.15 Field 01DSI, Dependency Status Indicator, 1 position 3.12.2.4.3.16 Field 01ABI, Age/Blind Indicators 3.12.2.4.3.17 Field 01DN1, 01DN2, 01DN3, 01DN4, Dependent Name Control 3.12.2.4.3.18 Field 01DS1, 01DS2, 01DS3, 01DS4, Dependent SSN 3.12.2.4.3.19 Field 01CT1, 01CT2, 01CT3, 01CT4, Dependent Child Tax and Other Dependent Credit Code, 1 position 3.12.2.4.3.20 Field 01RCD, Received Date 3.12.2.4.3.20.1 Post Office Marks 3.12.2.4.3.20.2 Private Delivery Service (PDS) Marks 3.12.2.4.3.20.3 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 3.12.2.4.3.21 Field 01RPC Return Processing Code 3.12.2.4.3.22 Field 01ACD Audit Codes 3.12.2.4.3.23 Field 01PEF, Presidential Election Campaign Fund Code 3.12.2.4.3.24 Field 01DAC, Digital Assets Code 3.12.2.4.3.25 Field 01FPC, Forms Processing Code 3.12.2.5 Section 02, Form 3471 (Edit Sheet) 3.12.2.5.1 Error Record Format Section 02 3.12.2.5.2 Field 02RI, Revalidation Indicator 3.12.2.5.3 Field 02DTR, Dependent TIN Requirement 3.12.2.5.4 Unallowables 3.12.2.5.5 Field 02RPD, Return Processed Date 3.12.2.5.6 Field 0206, Late-Filing Code 3.12.2.5.7 Field 02PDP, Pre-Determined Delinquency Penalty 3.12.2.5.8 Field 0208, Form 4563 Indicator (International) 3.12.2.5.9 Field 0211, Identification Number Penalty 3.12.2.5.10 Fields 02W2A and 02W2B, ITIN Return First/Second W-2 SSN 3.12.2.5.11 Field 02ARC, Affordable Care Act (ACA) Resolution Codes 3.12.2.5.12 Field 02NC> Non-Compute Code 3.12.2.6 Section 03, Simplified Tax Return 3.12.2.6.1 Error Record Format Section 03 3.12.2.6.2 Invalid Conditions 3.12.2.6.3 Correction Procedures 3.12.2.6.3.1 Field 03WG W-2 Wages 3.12.2.6.3.2 Field 03NCP Nontaxable Combat Pay 3.12.2.6.3.3 Field 03TWG Total Wages 3.12.2.6.3.4 Field 03TEI Tax-Exempt Interest 3.12.2.6.3.5 Field 03INT Taxable Interest 3.12.2.6.3.6 Field 03QD Qualified Dividends 3.12.2.6.3.7 Field 03DIV, Ordinary Dividends 3.12.2.6.3.8 Field 03GIR Gross IRA Distributions 3.12.2.6.3.9 Field 03TIR Taxable IRA Distributions 3.12.2.6.3.10 Field 03GPA Gross Pensions and Annuities 3.12.2.6.3.11 Field 03TPA Taxable Pensions and Annuities 3.12.2.6.3.12 Field 03GSS Gross Social Security Benefits 3.12.2.6.3.13 Field 03TSS Taxable Social Security Benefits 3.12.2.6.3.14 Field 03CGL, Schedule D Profit or Loss 3.12.2.6.3.15 Field 03ADD, Additional Income 3.12.2.6.3.16 Field 03TOT Total Income 3.12.2.6.3.17 Field 03TAJ Total Adjustments 3.12.2.6.3.18 Field 03AGI Adjusted Gross Income 3.12.2.6.3.19 Field 03QBI, Qualified Business Income Deduction 3.12.2.6.3.20 Field 03INC Taxable Income Amount 3.12.2.6.3.21 Field 03TTX Tentative Tax 3.12.2.6.3.22 Field 03AF, Additional Forms 8814 Attached 3.12.2.6.3.23 Field 03AT, Additional Forms 8814 Tax 3.12.2.6.3.24 Field 03COD, Child Tax and Other Dependent Credit Child Tax Credit 3.12.2.6.3.25 Field 03NRC Total Statutory Credits 3.12.2.6.3.26 Field 03OTX, Total Other Taxes 3.12.2.6.3.27 Field 03TAX Total Tax 3.12.2.6.3.28 Field 03WH Withholding 3.12.2.6.3.29 Field 03ESP Estimated Tax Credit 3.12.2.6.3.30 Field 03EIC Earned Income Credit (EIC) 3.12.2.6.3.31 Field 03ACT Additional Child Tax Credit 3.12.2.6.3.32 Field 03AOC Form 8863 Refundable Education Credit 3.12.2.6.3.33 Field 03RCR, Refundable Credits 3.12.2.6.3.34 Field 03PAY Total Payments 3.12.2.6.3.35 Field 03BDR, Balance Due/Refund 3.12.2.6.3.36 Field 03CEL, Estimated Tax Credit Elect 3.12.2.6.3.37 Field 03ETP, Pre-Determined Estimated Tax Penalty 3.12.2.6.3.38 Field 03AI, Third Party Designee Authorization Indicator 3.12.2.6.3.39 Field 03TPN, Third Party Designee Name 3.12.2.6.3.40 Field 03TPI, Third Party Designee Identification Number 3.12.2.6.3.41 Field 03EMW, E-File Mandate Waiver Indicator 3.12.2.6.3.42 Field 03PT, Preparer TIN 3.12.2.6.3.43 Field 03PE, Preparer EIN 3.12.2.6.3.44 Field 03PC, Preparer's Code 3.12.2.6.3.45 Field 03PTN, Preparer Telephone Number 3.12.2.6.3.46 Field 03PSC, Form 1040C Credit 3.12.2.7 Section 04, Additional Income and Adjustments to Income 3.12.2.7.1 Error Record Format Section 04 3.12.2.7.2 Invalid Conditions 3.12.2.7.3 Correction Procedures 3.12.2.7.3.1 Field 04KAM, Form 1099-K Amount 3.12.2.7.3.2 Field 0401, State Income Tax Refund 3.12.2.7.3.3 Field 0402A, Alimony Received 3.12.2.7.3.4 Field 0403, Combined Schedule C Profit or Loss 3.12.2.7.3.5 Field 0404, Other Gains or Losses 3.12.2.7.3.6 Field 0405, Schedule E Income or Loss 3.12.2.7.3.7 Field 0406, Combined Schedule F Profit or Loss 3.12.2.7.3.8 Field 0407, Taxable Unemployment Compensation 3.12.2.7.3.9 Field 04SFG, Scholarship and Fellowship Grants 3.12.2.7.3.10 Field 04OTI, Other Income 3.12.2.7.3.11 Field 04RTA, Form 982 Indicator 3.12.2.7.3.12 Fields 04EDU, Educator Expenses 3.12.2.7.3.13 Field 04CBE, Reservist and Others Business Expenses 3.12.2.7.3.14 Field 04HSA, Combined Health Savings Account Deduction 3.12.2.7.3.15 Field 04MOV, Form 3903 Moving Expenses 3.12.2.7.3.16 Field 04DSE, Deduction for Self-Employment Tax 3.12.2.7.3.17 Field 04SEP, Self Employed Retirement Plans Deduction 3.12.2.7.3.18 Field 04HID, Self Employed Health Insurance Deduction 3.12.2.7.3.19 Field 04PEW, Penalty on Savings Withdrawal 3.12.2.7.3.20 Field 04ALP, Alimony Paid 3.12.2.7.3.21 Field 04SSN, Alimony SSN 3.12.2.7.3.22 Field 04IRA, IRA Deduction 3.12.2.7.3.23 Field 04SLI, Student Loan Interest Deduction 3.12.2.7.3.24 Field 04MSA, Archer Medical Savings Account (MSA) Deduction 3.12.2.7.3.25 Field 04ADJ, Other Adjustments 3.12.2.8 Section 05, Additional Taxes, Additional Credits and Payments 3.12.2.8.1 Error Record Format Section 05 3.12.2.8.2 Invalid Conditions 3.12.2.8.3 Correction Procedures 3.12.2.8.3.1 Field 0521A, Excess Advance Premium Tax Credit Repayment 3.12.2.8.3.2 Field 0521B, Repayment of Clean Vehicle Credit 3.12.2.8.3.3 Field 0521C, Repayment of Previously Owned Clean Vehicle Credit 3.12.2.8.3.4 Field 0521D, Schedule 2 Part I Form 4255 Recapture Amount 3.12.2.8.3.5 Field 0521E, Form 4255 Excessive Payments Amount 3.12.2.8.3.6 Field 05PCK, Form 4255 Excessive Payments Checkbox 3.12.2.8.3.7 Field 0521F, Form 4255 Chapter 1 Tax Amount 3.12.2.8.3.8 Field 05TCK, Form 4255 Chapter 1 Tax Checkbox 3.12.2.8.3.9 Field 0521Y, Other Additions to Tax 3.12.2.8.3.10 Field 05202, Alternative Minimum Tax, Form 6251 3.12.2.8.3.11 Field 05204, Combined Self-Employment Tax 3.12.2.8.3.12 Field 05SSM, Combined Unreported Social Security and Medicare Tax, Forms 4137 and 8919 3.12.2.8.3.13 Field 05IRA, Combined Tax on Retirement Plans 3.12.2.8.3.14 Field 05HSH, Combined Household Employment Taxes, Schedule H 3.12.2.8.3.15 Field 05FHB, First-Time Homebuyer Credit Repayment 3.12.2.8.3.16 Field 05AMT, Form 8959 Additional Medicare Tax 3.12.2.8.3.17 Field 05NIT, Form 8960 Net Investment Income Tax 3.12.2.8.3.18 Field 05USS, Uncollected Tax on Reported Tips 3.12.2.8.3.19 Field 05III, Interest Due on Installment Income (IRC 453 Tax; Code L) 3.12.2.8.3.20 Field 05IDT, Interest on Deferred Tax (IRC 453 Tax; Code A) 3.12.2.8.3.21 Field 05LIR, Form 8611 Recapture 3.12.2.8.3.22 Field 05TAT, Total Additional Taxes 3.12.2.8.3.23 Field 05EPR, Schedule 2 Part II Form 4255 Recapture Amount 3.12.2.8.3.24 Field 05965, Section 965 Tax Installment 3.12.2.8.3.25 Field 05TL, Section 965 Tax Liability 3.12.2.8.3.26 Field 05PYC, Prior Year Advanced Credit 3.12.2.8.3.27 Field 05301, Foreign Tax Credit, Form 1116 3.12.2.8.3.28 Field 05302, Credit for Child and Dependent Care Expenses, Form 2441 3.12.2.8.3.29 Field 05303, Education Credit, Form 8863 3.12.2.8.3.30 Field 05304, Retirement Savings Contribution Credit, Form 8880 3.12.2.8.3.31 Field 0505A, Residential Clean Energy Credit, Form 5695 3.12.2.8.3.32 Field 0505B, Energy Efficient Home Improvement Credit, Form 5695 3.12.2.8.3.33 Field 05GBC, General Business Credit, Form 3800 3.12.2.8.3.34 Field 05PYM, Credit for Prior Year Minimum Tax, Form 8801 3.12.2.8.3.35 Field 05ADC, Adoption Credit, Form 8839 3.12.2.8.3.36 Fields 05ELD, Credit for the Elderly or Disabled, Schedule R 3.12.2.8.3.37 Field 05AMC, Alternative Motor Vehicle Credit, Form 8910 3.12.2.8.3.38 Field 05CVC, Clean Vehicle Credit, Form 8936 3.12.2.8.3.39 Field 05MIC, Mortgage Interest Credit, Form 8396 3.12.2.8.3.40 Field 05POC, Previously Owned Clean Vehicles Credit, Form 8936 3.12.2.8.3.41 Field 05OSC, Other Statutory Credits 3.12.2.8.3.42 Field 05ONC, Total Other Nonrefundable Credits 3.12.2.8.3.43 Field 05PTC Reconciled Premium Tax Credit 3.12.2.8.3.44 Field 05EXT, Form 4868 Payment 3.12.2.8.3.45 Field 05ESS Excess Social Security/RRTA 3.12.2.8.3.46 Field 05FUE, Form 4136, Fuel Tax Credit 3.12.2.8.3.47 Field 05RIC, Form 2439 Regulated Investment Company and Real Estate Investment Trust Credit 3.12.2.8.3.48 Field 05EYR, Credit for Earlier Year Income Repayment 3.12.2.8.3.49 Field 05EPA, Net Elective Payment Election Amount 3.12.2.8.3.50 Field 05OTH, Other Payment or Credit Amount 3.12.2.8.3.51 Field 05TYP, Other Payment or Credit Type Code 3.12.2.8.3.52 Field 05OPR, Total Other Payments and Refundable Credits 3.12.2.9 Section 06, Direct Deposit 3.12.2.9.1 Error Record Format Section 06 3.12.2.9.2 Correction Procedures 3.12.2.9.2.1 Field 06RTN, Routing and Transit Number 3.12.2.9.2.2 Field 06DAN, Depositor Account Number 3.12.2.9.2.3 Field 06TDA, Type Depositor Account 3.12.2.10 Section 07, Schedule A 3.12.2.10.1 Error Record Format, Section 07 3.12.2.10.2 Invalid Condition 3.12.2.10.3 Correction Procedures 3.12.2.10.3.1 Field 0701, Medical Expense 3.12.2.10.3.2 Field 0703, Percentage of AGI Taxpayer 3.12.2.10.3.3 Field 0704, Taxpayer's Total Medical Deduction 3.12.2.10.3.4 Field 0704V, Total Medical Verified 3.12.2.10.3.5 Field 0705A, State and Local Income and Sales Tax 3.12.2.10.3.6 Field 07STI, State and Local Income or Sales Tax Code 3.12.2.10.3.7 Field 0705B, Real Estate Taxes 3.12.2.10.3.8 Field 0705C, Personal Property Taxes 3.12.2.10.3.9 Field 0706, Other Taxes 3.12.2.10.3.10 Field 0707, Total Tax Deduction 3.12.2.10.3.11 Field 0708A, Home Mortgage Interest and Points 3.12.2.10.3.12 Field 0708B, Home Mortgage Interest, Not on Form 1098 3.12.2.10.3.13 Field 0708C, Deductible Points 3.12.2.10.3.14 Field 0709, Investment Interest 3.12.2.10.3.15 Field 0710, Total Interest Deduction 3.12.2.10.3.16 Field 0711, Cash Contributions 3.12.2.10.3.17 Fields 0712, Other Contributions, Not By Check or Cash 3.12.2.10.3.18 Field 0713, Carryover Contributions 3.12.2.10.3.19 Field 0714, Total Contributions 3.12.2.10.3.20 Field 0715, Total Casualty or Theft Loss 3.12.2.10.3.21 Field 0716, Other Itemized Deductions 3.12.2.10.3.22 Field 0717, Total Itemized Deductions 3.12.2.10.3.23 Field 0717V, Total Itemized Deductions Verified 3.12.2.10.3.24 Field 07IEI, Itemized Election Indicator 3.12.2.10.3.25 Unallowables 3.12.2.11 Section 08, Schedule B 3.12.2.11.1 Error Record Format Section 08 3.12.2.11.2 Invalid Conditions 3.12.2.11.3 Correction Procedures 3.12.2.11.3.1 Field 08INT, Schedule B Gross Interest 3.12.2.11.3.2 Field 0803, Excludable Savings Bond Interest 3.12.2.11.3.3 Field 08DIV, Schedule B Gross Dividends 3.12.2.11.3.4 Field 08FAQ, Foreign Accounts Code 3.12.2.11.3.5 Field 08FIN, FINCEN Required Code 3.12.2.12 Sections 09, 10, and 11, Schedule C 3.12.2.12.1 Error Record Format of Section 09, 10, and 11 3.12.2.12.2 Invalid Conditions 3.12.2.12.3 Correction Procedures 3.12.2.12.3.1 Field 09PBD, Principal Business Description 3.12.2.12.3.2 Field 09SSN, Social Security Number 3.12.2.12.3.3 Field 09NCS, NAICS Code 3.12.2.12.3.4 Field 09BNM, Business Name 3.12.2.12.3.5 Field 09EIN, Employer Identification Number 3.12.2.12.3.6 Field 09AMC, Accounting Method Code 3.12.2.12.3.7 Field 09FRS, First-Time Code 3.12.2.12.3.8 Field 09STI, Statutory Employee Indicator 3.12.2.12.3.9 Field 09FRQ, Schedule C Form 1099 Required Code 3.12.2.12.3.10 Field 09FFD, Schedule C Form 1099 Filed Code 3.12.2.12.3.11 Field 0901, Gross Receipts Amount 3.12.2.12.3.12 Field 0902 through 0906 3.12.2.12.3.13 Field 0909 through 0927B 3.12.2.12.3.14 Field 09EXP, Total Expenses 3.12.2.12.3.15 Field 0930, Expenses for Business Use of Home 3.12.2.12.3.16 Field 09AR, At-Risk Code 3.12.2.12.3.17 Fields 0935 and 0941 - Beginning and Ending Inventory 3.12.2.13 Section 12, Schedule D and Form 8949 3.12.2.13.1 Error Record Format Section 12 3.12.2.13.2 Invalid Condition 3.12.2.13.3 Correction Procedures 3.12.2.13.3.1 Field 12QOF, Qualified Opportunity Fund Checkbox 3.12.2.13.3.2 Fields 121AD, 121AE, 121BD, 121BE, 121BG, 122D, 122E, 122G, 123D, 123E, 123G, 1205 and 1207 3.12.2.13.3.3 Fields 128AD, 128AE, 128BD, 128BE, 128BG, 129D, 129E, 129G, 1210D, 1210E, 1210G, 1212, 1213 and 1215 3.12.2.13.3.4 Fields 1218 and 1219 3.12.2.13.3.5 Fields 12ZSE, 12ZSD, 12ZSA, 12ZSF, 12ZLE, 12ZLD, 12ZLA, and 12ZLF 3.12.2.13.3.6 Fields 12YSE, 12YSD, 12YSA, 12YSF, 12YLE, 12YLD, 12YLA, 12YLF 3.12.2.13.3.7 Field 12DV, Schedule D Profit/Loss Verified 3.12.2.14 Section 13, Schedule E 3.12.2.14.1 Error Record Format, Section 13 3.12.2.14.2 Invalid Conditions 3.12.2.14.3 Correction Procedures 3.12.2.14.3.1 Field 13FRQ, Schedule E Form 1099 Required Code 3.12.2.14.3.2 Field 13FFD, Schedule E Form 1099 Filed Code 3.12.2.14.3.3 Fields 1314A, 1314B, and 1314C, Repairs 3.12.2.14.3.4 Fields 1323A to 1323E 3.12.2.14.3.5 Field 1324, Income from Rental Real Estate and Royalties 3.12.2.14.3.6 Field 1325, Loss from Rental Real Estate and Royalties 3.12.2.14.3.7 Field 1327 Passive Income Indicator 3.12.2.14.3.8 Field 1329H, Partnership/S Corporation Passive Income 3.12.2.14.3.9 Field 1329K, Partnership/S Corporation Nonpassive Income 3.12.2.14.3.10 Field 13PIG, Partnership/S Corporation Passive Loss 3.12.2.14.3.11 Field 1329I, Partnership/S Corporation Nonpassive Loss 3.12.2.14.3.12 Field 1330, Partnership/S Corporation Income 3.12.2.14.3.13 Field 1331, Partnership/S Corporation Loss 3.12.2.14.3.14 Field 1334D, Estate/Trust Passive Income 3.12.2.14.3.15 Field 13PET, Passive Estate and Trust Loss 3.12.2.14.3.16 Field 1335, Estate/Trust Income 3.12.2.14.3.17 Field 1336, Estate/Trust Loss 3.12.2.14.3.18 Field 13ES, Schedule K-1 ES Payment 3.12.2.14.3.19 Field 1339, Real Estate Mortgage Investment Conduits (REMIC) 3.12.2.14.3.20 Field 1340, Farm Rental Income or Loss 3.12.2.14.3.21 Field 1342, Farm and Fishing Income 3.12.2.14.3.22 Field 1343, Real Estate Professionals Net Income or Loss 3.12.2.15 Sections 14 and 15, Schedule F 3.12.2.15.1 Error Record Format Sections 14 and 15 3.12.2.15.2 Invalid Conditions 3.12.2.15.3 Correction Procedures 3.12.2.15.3.1 Field 14NCS, North American Industry Classification System (NAICS) Code 3.12.2.15.3.2 Field 14EIN, Employer Identification Number (EIN) 3.12.2.15.3.3 Field 14FRQ, Schedule F Form 1099 Required Code 3.12.2.15.3.4 Field 14FFD, Schedule F Form 1099 Filed Code 3.12.2.15.3.5 Fields 1401B through 1409 3.12.2.15.3.6 Fields 1413 through 1428 3.12.2.15.3.7 Field 1433, Total Farm Expenses 3.12.2.15.3.8 Field 14AR, At-Risk Code 3.12.2.15.3.9 Fields 1438A through 1450 3.12.2.16 Section 16, Schedule R 3.12.2.16.1 Error Record Format, Section 16 3.12.2.16.2 Invalid Conditions 3.12.2.16.3 Correction Procedures 3.12.2.16.3.1 Field 16FSI, Filing Status Age Indicator Code 3.12.2.16.3.2 Field 1611, Taxable Disability Income 3.12.2.16.3.3 Field 1613C, Other Pensions and Annuities 3.12.2.16.3.4 Field 1620V, Credit for the Elderly and Disabled Verified 3.12.2.17 Sections 17 and 18, Schedule SE 3.12.2.17.1 Error Record Format Sections 17 and 18 3.12.2.17.2 Invalid Conditions 3.12.2.17.3 Correction Procedures 3.12.2.17.3.1 Field 17SSN, Social Security Number (SSN) 3.12.2.17.3.2 Field 1701A, Net Farm Profit/Loss 3.12.2.17.3.3 Field 1701B, Conservation Reserve Program Payments Exclusions 3.12.2.17.3.4 Field 1702, Net Non Farm Profit/Loss 3.12.2.17.3.5 Field 17TE, Tentative Earnings 3.12.2.17.3.6 Field 1704B, Optional Method Income Amount 3.12.2.17.3.7 Field 17QC, Self-Employment Quarters Covered 3.12.2.17.3.8 Field 17CHW, Tentative Church Wages 3.12.2.17.3.9 Field 17TSW, Total Social Security Wages Covered 3.12.2.17.3.10 Field 17SIV, Self Employed Social Security Income Computer Verified 3.12.2.17.3.11 Field 17SEV, Self-Employment Tax Verified 3.12.2.17.3.12 Field 17MCD, SE Method Code 3.12.2.17.3.12.1 Field 17MCD, SE Method Coding 3.12.2.18 Section 19, Form 1116 3.12.2.18.1 Error Record Format Section 19 3.12.2.18.2 Invalid Conditions 3.12.2.18.3 Correction Procedures 3.12.2.18.3.1 Field 19AF, Additional Forms 1116 Attached 3.12.2.18.3.2 Fields 1914, 1916, 1917, 1921, 1922, 1923, and 1924 (Part III) 3.12.2.18.3.3 Fields 1934 and 1935 (Part IV) 3.12.2.19 Section 20, Schedule J 3.12.2.19.1 Error Record Format, Section 20 3.12.2.19.2 Invalid Conditions 3.12.2.19.3 Correction Procedures 3.12.2.19.3.1 Field 2002A through 2021 3.12.2.20 Section 21, Form 2441 3.12.2.20.1 Error Record Format, Section 21 3.12.2.20.2 Invalid Conditions 3.12.2.20.3 Correction Procedures 3.12.2.20.3.1 Field 21MFS, Qualifying Married Filing Separate Indicator 3.12.2.20.3.2 Field 21DI, Student or Disabled Indicator 3.12.2.20.3.3 Field 21CPN, Child Care Provider Name Control 3.12.2.20.3.4 Field 21CPT, Child Care Provider TIN 3.12.2.20.3.5 Field 21HEI, Child Care Provider Household Employee Code 3.12.2.20.3.6 Field 21QI, Qualifying Individual Number 3.12.2.20.3.7 Field 21CN1 and 21CN2, Dependent Child Care Name Control 1 and 2 3.12.2.20.3.8 Field 21DS1 and 21DS2, Dependent Child Care SSN 1 and 2 3.12.2.20.3.9 Field 211DI and 212DI, Child Care Credit Dependent 1 and 2 Disabled Indicator 3.12.2.20.3.10 Field 21CP1 and 21CP2, Dependent Child Care Payment Amount 1 and 2 3.12.2.20.3.11 Field 2103, Qualifying Expenses Incurred Amount 3.12.2.20.3.12 Fields 2104 and 2105, Primary and Secondary Earned Income 3.12.2.20.3.13 Field 21PYE, Prior-Year Expense 3.12.2.20.3.14 Field 2112, Dependent Care Employer Benefit Amount 3.12.2.20.3.15 Field 2116, Qualified Expenses Incurred Amount (Employer) 3.12.2.20.3.16 Field 2125, Dependent Care Exclusion 3.12.2.20.3.17 Field 2126, Dependent Care Taxable Benefits 3.12.2.20.3.18 Field 21CCV, Child Care Credit Verified 3.12.2.20.3.19 Field 21CSR, Child Care SSN Requirement 3.12.2.21 Section 22, Form 3800 3.12.2.21.1 Error Record Format, Section 22 3.12.2.21.2 Invalid Conditions 3.12.2.21.3 Correction Procedures 3.12.2.21.3.1 Field 2201, Non-Passive Activity Credit Amount 3.12.2.21.3.2 Field 2202, Passive Activity Credit Included Amount 3.12.2.21.3.3 Field 2203, Part 1 Passive Activity Credit Allowed Amount 3.12.2.21.3.4 Field 2204, Form 3800 Carryforward Credit Amount 3.12.2.21.3.5 Field 2205, Form 3800 Carryback Credit Amount 3.12.2.21.3.6 Field 2224, Part 2 Passive Activity Credit Allowed Amount 3.12.2.21.3.7 Field 2225, Empowerment Zone Employment Credit Included 3.12.2.21.3.8 Field 2226, Empowerment Zone Employment Credit Allowed 3.12.2.21.3.9 Field 2236, Net Allowable General Business Credit Amount 3.12.2.21.3.10 Field 22IND, Consolidated Part 3 Indicator 3.12.2.21.3.11 Fields 221AG through 221TG 3.12.2.22 Section 23, Form 3800 Part III 3.12.2.22.1 Error Record Format, Section 23 3.12.2.22.2 Invalid Conditions 3.12.2.22.3 Correction Procedures 3.12.2.22.3.1 Fields 231UB Through 231ZZ 3.12.2.22.3.2 Field 23CHS, Certified Historic Structures Credit 3.12.2.22.3.3 Field 23DPI, Form 3800 Part V Column B Data Present Indicator 3.12.2.22.3.4 Fields 2303J Through 234KJ 3.12.2.22.3.5 Field 23TOT, Total Additional Business Credit Amount 3.12.2.22.3.6 Field 23BCV, General Business Credits Verified 3.12.2.23 Sections 24 and 25, Form 4137 3.12.2.23.1 Error Record Format-Section 24 and 25 3.12.2.23.2 Invalid Conditions 3.12.2.23.3 Correction Procedures 3.12.2.23.3.1 Field 24SSN, Form 4137 SSN 3.12.2.23.3.2 Fields 24ANM to 24ENM 3.12.2.23.3.3 Fields 24AEN to 24EEN 3.12.2.23.3.4 Fields 24ARC to 24ERC 3.12.2.23.3.5 Fields 24ARP to 24ERP 3.12.2.23.3.6 Field 2402, Total Cash and Tips Received 3.12.2.23.3.7 Field 2403, Total Cash and Tips Reported 3.12.2.23.3.8 Field 2405, Incidental Cash and Tips 3.12.2.23.3.9 Field 2406, Unreported Tips Subject to Medicare Tax 3.12.2.23.3.10 Field 2408, SS Wages and Tips 3.12.2.23.3.11 Field 24GOV, Government Employee Tips 3.12.2.23.3.12 Field 2413V, Form 4137 Tax Verified 3.12.2.24 Section 26, Form 4684 3.12.2.24.1 Error Record Format Section 26 3.12.2.24.2 Invalid Conditions 3.12.2.24.3 Correction Procedures 3.12.2.24.3.1 Field 26DDN, Disaster Declaration Number 3.12.2.24.3.2 Field 26ZIP, Most Impacted Property ZIP Code 3.12.2.24.3.3 Field 2613, Total Personal Use Property Gains 3.12.2.24.3.4 Field 2614, Total Personal Use Property Losses 3.12.2.24.3.5 Field 2616, Gross Casualties and Thefts 3.12.2.25 Section 27, Form 4797 3.12.2.25.1 Error Record Format Section 27 3.12.2.25.2 Invalid Conditions 3.12.2.25.3 Correction Procedures 3.12.2.25.3.1 Field 2701A, Gross Sales or Exchanges Amount 3.12.2.25.3.2 Field 2701B, Total Gain Due to Partial Disposition of MACRS Assets 3.12.2.25.3.3 Field 2701C, Total Loss Due to Partial Disposition of MACRS Assets 3.12.2.25.3.4 Field 2707, Section 1231 Gain/Loss 3.12.2.25.3.5 Field 2708, Non-recaptured Net Section 1231 Loss 3.12.2.25.3.6 Field 2709, Total Sales of Business Property 3.12.2.25.3.7 Field 27LD, Livestock Depreciation 3.12.2.26 Section 28, Form 4972 3.12.2.26.1 Error Record Format Section 28 3.12.2.26.2 Invalid Conditions 3.12.2.26.3 Correction Procedures 3.12.2.26.3.1 Fields 2801 through 2830 3.12.2.26.3.2 Field 28TDV, Form 4972, Tax Distributions Verified 3.12.2.27 Sections 29 and 30, Form 5329 3.12.2.27.1 Error Record Format, Section 29 and 30 3.12.2.27.2 Invalid Conditions 3.12.2.27.3 Correction Procedures 3.12.2.27.3.1 Field 29ISI, IRA Spouse Indicator 3.12.2.27.3.2 Field 2904, Additional Tax on Early Distributions 3.12.2.27.3.3 Field 2908, Additional Tax on Certain Distributions From Education Accounts 3.12.2.27.3.4 Field 2917, Tax on Excess IRA Contributions 3.12.2.27.3.5 Field 2925, Tax on Excess Roth IRA Contributions 3.12.2.27.3.6 Field 2933, Tax on Excess Coverdell Education Savings Account Contributions 3.12.2.27.3.7 Field 2941, Tax on Excess MSA Contributions 3.12.2.27.3.8 Field 2949, Tax on Excess Contributions to HSA 3.12.2.27.3.9 Field 2951, Tax on Excess ABLE Contribution Amount 3.12.2.27.3.10 Field 2955 Tax on Excess Accumulation Amount 3.12.2.27.3.11 Field 29ICC, IRA Condition Codes 3.12.2.28 Section 31, Form 6198 3.12.2.28.1 Error Record Format, Section 31 3.12.2.28.2 Invalid Conditions 3.12.2.28.3 Correction Procedures 3.12.2.28.3.1 Field 3105, Overall Profit/Loss 3.12.2.28.3.2 Field 3120, Amount at Risk 3.12.2.28.3.3 Field 3121, Deductible Loss 3.12.2.29 Section 32, Form 6251 3.12.2.29.1 Error Record Format Section 32 3.12.2.29.2 Invalid Conditions 3.12.2.29.3 Correction Procedures 3.12.2.29.3.1 Field 32HMI, Certain Home Mortgage Interest 3.12.2.29.3.2 Fields 3202C through 3203 3.12.2.29.3.3 Field 3208, Form 6251 Foreign Tax Credit 3.12.2.29.3.4 Field 3211V, Alternative Minimum Tax Verified 3.12.2.30 Section 33, Form 8615 3.12.2.30.1 Error Record Format, Section 33 3.12.2.30.2 Invalid Conditions 3.12.2.30.3 Correction Procedures 3.12.2.30.3.1 Field 33PNC, Parent's Name Control 3.12.2.30.3.2 Field 33PSS, Parent(s) Social Security Number 3.12.2.30.3.3 Field 3301, Form 8615 Gross Investment Income 3.12.2.30.3.4 Field 3302, Form 8615 Deductions 3.12.2.30.3.5 Field 3318, Form 8615 Tax 3.12.2.30.3.6 Field 3318V, Form 8615 Tax Verified 3.12.2.31 Section 37, Form 4835 3.12.2.31.1 Error Record Format, Section 37 3.12.2.31.2 Invalid Conditions 3.12.2.31.3 Correction Procedures 3.12.2.31.3.1 Fields 3701 to 3706 3.12.2.32 Section 38, Form 8839 3.12.2.32.1 Error Record Format, Section 38 3.12.2.32.2 Invalid Conditions 3.12.2.32.3 Correction Procedures 3.12.2.32.3.1 Fields 38SDI, Supporting Documentation Indicator (TY10 and later only) 3.12.2.32.3.2 Field 38NC1, 38NC2, and 38NC3, Form 8839 Adoptee Name Control 3.12.2.32.3.3 Fields 38YB1, 38YB2, and 38YB3, Form 8839 Adoptee Year of Birth 3.12.2.32.3.4 Field 38DI1, 38DI2, and 38DI3, Form 8839 Adoptee Disabled Indicator 3.12.2.32.3.5 Fields 38SP1, 38SP2, and 38SP3, Special Needs Indicator 3.12.2.32.3.6 Fields 38FC1, 38FC2, and 38FC3, Foreign Child Indicator 3.12.2.32.3.7 Fields 38TN1, 38TN2, and 38TN3, Form 8839 Adoptee TIN 3.12.2.32.3.8 Fields 38FA1/38FA2/38FA3-Form 8839 Final Adoption Indicator 3.12.2.32.3.9 Fields 38PY1, 38PY2, and 38PY3, Form 8839 Prior-Year Adoption Amount 3.12.2.32.3.10 Fields 38QE1, 38QE2, and 38QE3, Form 8839 Qualified Adoption Expenses Amount 3.12.2.32.3.11 Fields 38TA1, 38TA2, and 38TA3, Form 8839 Total Adoption Credit Amount 3.12.2.32.3.12 Field 38CF, Form 8839 Carryforward Amount 3.12.2.32.3.13 Field 38TEB Form 8839 Total Employer Benefits Amount 3.12.2.32.3.14 Fields 38EB1, 38EB2, and 38EB3, Form 8839 Excluded Benefits 3.12.2.32.3.15 Field 38EEB, Form 8839 Employer Excluded Benefits Amount 3.12.2.32.3.16 Field 38ETB, Form 8839 Employer Taxable Benefits Amount 3.12.2.32.3.17 Field 38AAI, Form 8839 Additional Adoptee Indicator 3.12.2.32.3.18 Field 38ACV, Form 8839 Adoption Credit Verified Amount (PY) 3.12.2.33 Section 39, Form 8853 3.12.2.33.1 Error Record Format Section 39 3.12.2.33.2 Invalid Conditions 3.12.2.33.3 Correction Procedures 3.12.2.33.3.1 Field 39MSS, MSA SSN 3.12.2.33.3.2 Field 3901, Total Employer MSA Contributions Amount 3.12.2.33.3.3 Field 3902, MSA Contributions Amount 3.12.2.33.3.4 Field 3903, MSA Limitations Amount 3.12.2.33.3.5 Field 3904, Maintaining Employer Compensation Amount 3.12.2.34 Sections 40, 41 and 42, Form 8814 3.12.2.34.1 Error Record Format, Sections 40, 41, and 42 3.12.2.34.2 Invalid Conditions 3.12.2.34.3 Correction Procedures 3.12.2.34.3.1 Fields 40CN1, 41CN2, and 42CN3, Form 8814 Child's Name Control 3.12.2.34.3.2 Fields 40CT1, 41CT2, and 42CT3, Form 8814 Child's SSN 3.12.2.34.3.3 Fields 4001A, 4101A, and 4201A, Form 8814 Taxable Interest 3.12.2.34.3.4 Fields 4001B, 4101B, and 4201B, Form 8814 Tax-Exempt Interest 3.12.2.34.3.5 Fields 4002A, 4102A, and 4202A, Form 8814 Ordinary Dividends 3.12.2.34.3.6 Fields 4003, 4103, and 4203, Form 8814 Capital Gains Distributions 3.12.2.34.3.7 Fields 4015, 4115, and 4215, Form 8814 Tax 3.12.2.35 Section 43, Schedule EIC 3.12.2.35.1 Error Record Format, Section 43 3.12.2.35.2 Invalid Conditions 3.12.2.35.3 Correction Procedures 3.12.2.35.3.1 Field 43MFS, EIC Married Filing Separate Indicator 3.12.2.35.3.2 Fields 43NC1, 43NC2, and 43NC3, EIC Name Control Child 1, 2, and 3 3.12.2.35.3.3 Fields 43IN1, 43IN2, and 43IN3, EIC Student or Disabled Indicator Child 1, 2, and 3 3.12.2.35.3.4 Fields 43SS1, 43SS2, and 43SS3, EIC SSN Child 1, 2, and 3 3.12.2.35.3.5 Fields 43YB1, 43YB2, and 43YB3, EIC Year of Birth Child 1, 2, and 3 3.12.2.35.3.6 Fields 43RC1, 43RC2, and 43RC3, EIC Child 1, 2, and 3 Relationship Code 3.12.2.35.3.7 Fields 43MO1, 43MO2, and 43MO3, EIC Child 1, 2, and 3 Number of Months 3.12.2.35.3.8 Field 43ESR, EIC Child SSNs Not Required 3.12.2.35.3.9 Fields 43A1V, 43A2V, and 43A3V, EIC Age Verified Child 1, 2, and 3 3.12.2.36 Sections 44 and 45, Schedule H 3.12.2.36.1 Error Record Format, Sections 44 and 45 3.12.2.36.2 Invalid Conditions 3.12.2.36.3 Correction Procedures 3.12.2.36.3.1 Field 44NC, Schedule H Name Control 3.12.2.36.3.2 Field 44SSN, Schedule H SSN 3.12.2.36.3.3 Field 44EIN, Schedule H EIN 3.12.2.36.3.4 Field 4401, Total Social Security Wages 3.12.2.36.3.5 Field 4403, Total Medicare Wages 3.12.2.36.3.6 Field 4405, Schedule H Total Cash Wages Additional Medicare Tax 3.12.2.36.3.7 Field 4406, Schedule H Additional Medicare Tax 3.12.2.36.3.8 Field 4407, Federal Withholding 3.12.2.36.3.9 Field 4408, Total Social Security/Medicare/Income Taxes 3.12.2.36.3.10 Field 44NFV, Total Non-FUTA Tax Verified 3.12.2.36.3.11 Field 44FIN, FUTA Indicator 3.12.2.36.3.12 Fields 44SC1 and 44SC2, FUTA State Code 1 and 2 3.12.2.36.3.13 Fields 44SC3 through 44SC5, FUTA State Code 3 through 5 3.12.2.36.3.14 Field 44FCP, FUTA Contributions Paid 3.12.2.36.3.15 Field 44TFW, Total FUTA Wages 3.12.2.36.3.16 Field 44FTX, FUTA Tax 3.12.2.36.3.17 Field 44FTV, FUTA Tax Verified 3.12.2.36.3.18 Field 44TTC, FUTA Total Tentative Credit 3.12.2.36.3.19 Field 44ASI, Additional States Indicator 3.12.2.36.3.20 Field 44TCR, Total Credit Reduction 3.12.2.36.3.21 Fields 44CW1 to 44CW5, Credit-Reduction Wages 1 to 5 3.12.2.37 Section 47, Schedule 8812, 3.12.2.37.1 Error Record Format, Section 47 3.12.2.37.2 Invalid Conditions 3.12.2.37.3 Correction Procedures 3.12.2.37.3.1 Field 47OEI, Additional Child Tax Credit Opt Out Election Indicator 3.12.2.37.3.2 Field 47EI, Schedule 8812 Earned Income 3.12.2.37.3.3 Fields 47NCP, Nontaxable Combat Pay 3.12.2.37.3.4 Fields 47SSM, Total Social Security and Medicare Taxes 3.12.2.38 Sections 48 and 49, Form 8606 3.12.2.38.1 Error Record Format, Sections 48 and 49 3.12.2.38.2 Invalid Conditions 3.12.2.38.3 Correction Procedures 3.12.2.38.3.1 Field 48SI, Form 8606 Spouse Indicator 3.12.2.38.3.2 Field 4807, Traditional, SEP, and SIMPLE IRA Distributions 3.12.2.38.3.3 Field 4815C, Taxable Nondeductible Contribution 3.12.2.38.3.4 Fields 4816 through 4818 3.12.2.38.3.5 Field 4822, Roth IRA Contributions 3.12.2.39 Section 50, Form 8863 3.12.2.39.1 Error Record Format, Section 50 3.12.2.39.2 Invalid Conditions 3.12.2.39.3 Correction Procedures 3.12.2.39.3.1 Field 5001, Tentative American Opportunity Credit Amount 3.12.2.39.3.2 Field 5010, Lifetime Learning Credit Qualified Expenses Amount 3.12.2.39.3.3 Fields 50NC1, 50NC2 and 50NC3, Education Credit Student 1, 2, and 3 Name Control 3.12.2.39.3.4 Fields 50SS1, 50SS2 and 50SS3, Education Credit Student 1, 2, and 3 SSN 3.12.2.39.3.5 Fields 50FN1, 50FN2, and 50FN3, Education Institution Federal ID Number Student 1, 2, and 3 3.12.2.39.3.6 Fields 50SN1, 50SN2, and 50SN3, Second Education Institution Federal ID Number Student 1, 2, and 3 3.12.2.39.3.7 Fields 50PY1, 50PY2, and 50PY3, Prior-Year Hope Scholarship or AOT Credit Claimed Student 1, 2, and 3 Code 3.12.2.39.3.8 Fields 50AE1, 50AE2, and 50AE3, Academic Eligibility Student 1, 2, and 3 Code 3.12.2.39.3.9 Fields 50PS1, 50PS2, and 50PS3, Post-Secondary Education Student 1, 2, and 3 Code 3.12.2.39.3.10 Fields 50FE1, 50FE2, and 50FE3, Felony Conviction Student 1, 2, and 3 Code 3.12.2.39.3.11 Fields 50ASV, American Opportunity Eligible Student Verified Number 3.12.2.40 Section 51, Form 4952 3.12.2.40.1 Error Record Format, Section 51 3.12.2.40.2 Invalid Conditions 3.12.2.40.3 Correction Procedures 3.12.2.40.3.1 Field 514E, Disposition of Investment Property 3.12.2.40.3.2 Field 514G, Investment Income Elect 3.12.2.41 Sections 52 and 53, Form 8889 3.12.2.41.1 Error Record Format, Sections 52 and 53 3.12.2.41.2 Invalid Conditions 3.12.2.41.3 Correction Procedures 3.12.2.41.3.1 Field 5201, High-Deductible Health Plan Check Box 3.12.2.41.3.2 Field 5202, HSA Contributions 3.12.2.41.3.3 Field 5203, HSA Coverage Deductible 3.12.2.41.3.4 Field 5204, Total Archer MSA Contributions 3.12.2.41.3.5 Field 5205, Limited HSA Contributions 3.12.2.41.3.6 Field 5206, One-Half Adjusted HSA Deductible 3.12.2.41.3.7 Field 5207, Additional HSA Contributions 3.12.2.41.3.8 Field 5208, Total HSA Contributions High-Deductible Coverage 3.12.2.41.3.9 Field 5209, Employer HSA Contributions 3.12.2.41.3.10 Field 5210, Qualified HSA Funding Distributions 3.12.2.41.3.11 Field 5211, Total Qualified Distributions 3.12.2.41.3.12 Field 5212, Total Additional HSA Contributions 3.12.2.41.3.13 Field 5213, Total HSA Deduction 3.12.2.41.3.14 Field 52HSV, HSA Deduction Verified 3.12.2.41.3.15 Field 5214A, Total HSA Distributions 3.12.2.41.3.16 Field 5214B, HSA Rollover Amount 3.12.2.41.3.17 Field 5214C, Allowable HSA Distributions 3.12.2.41.3.18 Field 5215, Unreimbursed Qualified Medical Expenses 3.12.2.41.3.19 Field 5216, Taxable HSA Distributions 3.12.2.41.3.20 Field 5217A, 20 Percent Exception Check Box 3.12.2.41.3.21 Field 5217B, Total Additional 20 Percent Tax 3.12.2.41.3.22 Field 5218, Part-Year Coverage 3.12.2.41.3.23 Field 5219, Qualified HSA Funding 3.12.2.41.3.24 Field 5220, Total Income HDHP Coverage 3.12.2.41.3.25 Field 5221, Additional Tax HDHP Coverage 3.12.2.42 Section 54, Form 8880 3.12.2.42.1 Error Record Format, Section 54 3.12.2.42.2 Invalid Conditions 3.12.2.42.3 Correction Procedures 3.12.2.42.3.1 Field 5406A, Primary Contributions 3.12.2.42.3.2 Field 5406B, Secondary Contributions 3.12.2.43 Section 55, Form 8995/8995-A 3.12.2.43.1 Error Record Format, Section 55 3.12.2.43.2 Invalid Conditions 3.12.2.43.3 Correction Procedures 3.12.2.43.3.1 Field 55TIL, Total Qualified Business Income or Loss 3.12.2.43.3.2 Field 55QBC, Qualified Business Net Loss Carryforward 3.12.2.43.3.3 Field 55BIC, Qualified Business Income Component 3.12.2.43.3.4 Field 55RIL, Qualified REIT Dividends and PTP Income or Loss 3.12.2.43.3.5 Field 55RDC, Qualified REIT Dividends and PTP Loss Carryforward 3.12.2.43.3.6 Field 55REI, REIT and PTP Component 3.12.2.43.3.7 Field 55NCG, Net Capital Gains 3.12.2.43.3.8 Field 55TQC, Total Qualified Business Loss Carryforward 3.12.2.43.3.9 Field 55DPA, Form 8995 Domestic Production Activities Deduction Amount 3.12.2.43.3.10 Field 55TRC, Total Qualified REIT Dividend and PTP Loss Carryforward 3.12.2.44 Section 56, Form 8888 3.12.2.44.1 Error Record Format Section 56 3.12.2.44.2 Invalid Conditions 3.12.2.44.3 Correction Procedures 3.12.2.44.3.1 Fields 5601A, 5602A, and 5603A, Account 1/2/3 Deposit Amount 3.12.2.44.3.2 Fields 5601B, 5602B, and 5603B, Account 1/2/3 Routing Number 3.12.2.44.3.3 Fields 5601C, 5602C, and 5603C, Account 1/2/3 Type Deposit Code 3.12.2.44.3.4 Fields 5601D, 5602D, 5603D, Account 1/2/3 Account Number 3.12.2.44.3.5 Fields 5604A Through 56BD3 3.12.2.44.3.6 Field 5604, Paper Check Refund Amount 3.12.2.45 Section 57, Form 8978 3.12.2.45.1 Error Record Format, Section 57 3.12.2.45.2 Invalid Conditions 3.12.2.45.3 Correction Procedures 3.12.2.45.4 Field 57YAC, Source of Review Year Adjustments Code 3.12.2.46 Sections 58 and 59, Form 5405 3.12.2.46.1 Error Record Format, Sections 58 and 59 3.12.2.46.2 Invalid Conditions 3.12.2.46.3 Fields 58SSN and 59SSN, Social Security Number 3.12.2.46.4 Fields 5801 and 5901, Date of Disposition or Change in Status 3.12.2.46.5 Fields 5803 and 5903, Form 5405 Disposition Code 3.12.2.46.6 Fields 5804 and 5904, Credit Claimed in Prior Year Amount 3.12.2.46.7 Fields 5805 and 5905, Credit Repaid Home Purchased 2008 Amount 3.12.2.46.8 Fields 5807 and 5907, Gain on Sale of Main Home Amount 3.12.2.46.9 Fields 5808 and 5908, Repayment of Homebuyer Credit Amount 3.12.2.46.10 Fields 5808V and 5908V, Repayment of Homebuyer Credit Verified Amount 3.12.2.47 Sections 61 and 62, Form 8919 3.12.2.47.1 Error Record Format, Sections 61 and 62 3.12.2.47.2 Invalid Conditions 3.12.2.47.3 Correction Procedures 3.12.2.47.3.1 Field 61SSN, Social Security Number 3.12.2.47.3.2 Fields 61F1N/61F2N/61F3N, Firm Name 3.12.2.47.3.3 Fields 61F1E/61F2E/61F3E, Firm EIN 3.12.2.47.3.4 Fields 61F1R/61F2R/61F3R, Reason Code 3.12.2.47.3.5 Fields 61F1D/61F2D/61F3D, IRS Determination/Correspondence Date 3.12.2.47.3.6 Fields 61F1I/61F2I/61F3I, 1099-MISC Received Indicator 3.12.2.47.3.7 Fields 61F1W/61F2W/61F3W, Non-reported Wages Received with No SS/Medicare Tax Withheld 3.12.2.47.3.8 Field 6106, Form 8919 Total Wages Amount 3.12.2.47.3.9 Field 6108, Total Social Security Wages and Tips 3.12.2.47.3.10 Field 6113, Total Uncollected Social Security and Medicare Tax on Wages 3.12.2.47.3.11 Field 6113V, Total Uncollected Social Security and Medicare Tax on Wages Verified 3.12.2.48 Section 63, Form 8958 3.12.2.48.1 Error Record Format, Section 63 3.12.2.48.2 Field 63SPF, Spouse or Partner First Name 3.12.2.48.3 Field 63SPL, Spouse or Partner Last Name 3.12.2.48.4 Field 63SPN, Spouse or Partner SSN 3.12.2.49 Section 64, Form 461 3.12.2.49.1 Error Record Format, Section 64 3.12.2.49.2 Invalid Conditions 3.12.2.49.3 Correction Procedures 3.12.2.50 Sections 65 and 66, Form 8941 3.12.2.50.1 Error Record Format, Sections 65 and 66 3.12.2.50.2 Invalid Conditions 3.12.2.50.3 Correction Procedures 3.12.2.50.3.1 Fields 65SSN and 66SSN, Form 8941 ID Number 3.12.2.50.3.2 Fields 65SHP and 66SHP, Form 8941, SHOP Checkbox 3.12.2.50.3.3 Fields 65EIN and 66EIN, Form 8941 Employment Taxes EIN Number 3.12.2.50.3.4 Field 652YR and 662YR, Two Year Declaration Checkbox 3.12.2.50.3.5 Fields 6501 and 6601, Form 8941 Total Employees Number 3.12.2.50.3.6 Fields 6502 and 6602, Form 8941 Full-Time Employees Number 3.12.2.50.3.7 Fields 6503 and 6603, Form 8941 Average Annual Wages Amount 3.12.2.50.3.8 Fields 6504 and 6604, Form 8941 Health Insurance Premiums Paid Amount 3.12.2.50.3.9 Fields 6505 and 6605, Form 8941 Potential Total Premiums Amount 3.12.2.50.3.10 Fields 6510 and 6610, Form 8941, State Tax Credit and Premium Subsidy Amount 3.12.2.50.3.11 Fields 6513 and 6613, Form 8941 Employees with Premiums Paid Amount 3.12.2.50.3.12 Fields 6514 and 6614, Form 8941 Full Time Employees Premiums Paid Number 3.12.2.50.3.13 Fields 6515 and 6615, Form 8941 Premium Credit Other Sources Amount 3.12.2.50.3.14 Fields 6516 and 6616, Form 8941 Health Insurance Premiums Credit 3.12.2.50.3.15 Fields 6516V and 6616V, Form 8941 Health Insurance Premiums Verified 3.12.2.51 Section 67, Form 6252 3.12.2.51.1 Error Record Format, Section 67 3.12.2.51.2 Invalid Conditions 3.12.2.51.3 Correction Procedures 3.12.2.52 Section 68, Form 8910 3.12.2.52.1 Error Record Format, Section 68 3.12.2.52.2 Invalid Conditions 3.12.2.52.3 Correction Procedures 3.12.2.53 Section 69, Form 8936 and Form 8936 Schedule A 3.12.2.53.1 Error Record Format, Section 69 3.12.2.53.2 Invalid Conditions 3.12.2.53.3 Correction Procedures 3.12.2.53.3.1 Field 69ADJ, Form 8936 Prior Year Modified Adjusted Gross Income Amount 3.12.2.53.3.2 Field 69PYF, Form 8936 Prior Year Filing Status 3.12.2.53.3.3 Field 69CVP, Form 8936 New Clean Vehicle Partnership or S Corp Credit Amount 3.12.2.53.3.4 Field 69QVP, Form 8936 Qualified Commercial Vehicle Partnership or S Corp Credit Amount 3.12.2.53.3.5 Field 69AFI, Additional Form 8936 Schedule A Indicator 3.12.2.53.3.6 Fields 69VN1 and 69VN2, Form 8936 Schedule A Vehicle 1 and 2 Identification Number 3.12.2.53.3.7 Fields 69SD1 and 69SD2, Form 8936 Schedule A Vehicle 1 and 2 Placed in Service Date 3.12.2.53.3.8 Fields 69SR1 and 69SR2, Form 8936 Schedule A Vehicle 1 and 2 Sellers Report Transferred Amount 3.12.2.53.3.9 Fields 69RI1 and 69RI2, Form 8936 Schedule A Vehicle 1 and Vehicle 2 Repayment Indicator 3.12.2.53.3.10 Fields 69TC1 and 69TC2, Form 8936 Schedule A Vehicle 1 and 2 Tentative Credit Amount 3.12.2.53.3.11 Fields 69BP1 and 69BP2, Form 8936 Schedule A Vehicle 1 and 2 Business Use Percentage 3.12.2.53.3.12 Fields 69PO1 and 69PO2, Form 8936 Schedule A Previously Owned Clean Vehicle 1 and 2 Credit 3.12.2.53.3.13 Fields 69QC1 and 69QC2, Form 8936 Schedule A Qualified Commercial Clean Vehicle 1 and 2 Credit 3.12.2.54 Section 70, Form 8867 3.12.2.54.1 Error Record Format, Section 70 3.12.2.54.2 Invalid Conditions 3.12.2.54.3 Correction Procedures 3.12.2.54.3.1 Field 70EIC, EIC Checkbox 3.12.2.54.3.2 Field 70COD and 70CTC, CTC-ACTC-ODC Checkbox 3.12.2.54.3.3 Field 70AOC, AOTC Checkbox 3.12.2.54.3.4 Field 70HOH, HOH Checkbox 3.12.2.54.3.5 Field 7015, Form 8867 Answers Certification Code 3.12.2.55 Section 71, Form 8959 3.12.2.55.1 Error Record Format, Section 71 3.12.2.55.2 Invalid Conditions 3.12.2.55.3 Correction Procedures 3.12.2.55.3.1 Field 7101, Medicare Wages 3.12.2.55.3.2 Field 7102, Unreported Tips Form 4137 3.12.2.55.3.3 Field 7103, Wages from Form 8919 3.12.2.55.3.4 Field 7107, Additional Medicare Tax on Wages 3.12.2.55.3.5 Field 7108, Self Employment Income 3.12.2.55.3.6 Field 7113, Additional Medicare Tax on SE Income 3.12.2.55.3.7 Field 7114, Railroad Retirement Compensation 3.12.2.55.3.8 Field 7117, Additional Medicare Tax on Railroad Retirement (RRTA) Compensation 3.12.2.55.3.9 Field 7118, Additional Medicare Tax Taxpayer Amount 3.12.2.55.3.10 Field 7118V, Additional Medicare Tax Verified 3.12.2.55.3.11 Field 7119, Medicare Tax Withheld 3.12.2.55.3.12 Field 7123, Additional Medicare Tax Box 14 W-2 3.12.2.55.3.13 Field 7124, Total Additional Medicare Tax Withholding 3.12.2.56 Section 72, Form 8960 3.12.2.56.1 Error Record Format, Section 72 3.12.2.56.2 Invalid Conditions 3.12.2.56.3 Correction Procedures 3.12.2.56.3.1 Field 72IND, Investment Income Indicator 3.12.2.56.3.2 Field 7201, Taxable Interest 3.12.2.56.3.3 Field 7202, Ordinary Dividends 3.12.2.56.3.4 Field 7203, Annuities 3.12.2.56.3.5 Field 7204A, Rents, Royalties, Partnerships 3.12.2.56.3.6 Field 7204B, Adjustment for Net Income or Loss 3.12.2.56.3.7 Field 7205A, Net Gains from Disposition of Property 3.12.2.56.3.8 Field 7205B, Net Gain or Loss 3.12.2.56.3.9 Field 7205C, Adjustment from Disposition of Partnership Interest S Corp 3.12.2.56.3.10 Field 7206, Changes for CFCs and PFICs 3.12.2.56.3.11 Field 7207, Other Modification 3.12.2.56.3.12 Field 7208, Total Investment Income 3.12.2.56.3.13 Field 7209A, Investment Interest Expense 3.12.2.56.3.14 Field 7209B, State Income Tax 3.12.2.56.3.15 Field 7209C, Miscellaneous Investment Expenses 3.12.2.56.3.16 Field 7210, Additional Modifications 3.12.2.56.3.17 Field 7211, Total Deductions and Modifications 3.12.2.56.3.18 Field 7213, Modified Adjusted Gross Income 3.12.2.56.3.19 Field 7216, Form 8960 Taxable Investment Income 3.12.2.56.3.20 Field 7217, Net Investment Income Tax 3.12.2.56.3.21 Field 7217V, Net Investment Income Tax Verified 3.12.2.57 Section 73, Form 8962, page 1 of 2 (ACA) 3.12.2.57.1 Error Record Format, Section 73 3.12.2.57.2 Invalid Conditions 3.12.2.57.3 Correction Procedures 3.12.2.57.3.1 Field 73MFS, Married Filing Separate PTC Exception Checkbox Indicator 3.12.2.57.3.2 Field 7302B, Dependents Modified AGI 3.12.2.57.3.3 Field 73SOR, Federal Poverty Level State of Residence Checkbox 3.12.2.57.3.4 Field 7308B, Monthly Contribution for Health Care 3.12.2.57.3.5 Field 7311A, Annual Premium Amount 3.12.2.57.3.6 Field 7311B, Annual Premium of SLCSP Amount 3.12.2.57.3.7 Field 7311F, Annual Advance PTC 3.12.2.57.3.8 Fields 7312A, 7313A, 7314A, 7315A, 7316A, 7317A, 7318A, 7319A, 7320A, 7321A, 7322A, and 7323A, Monthly Premium Amount 3.12.2.57.3.9 Fields 7312B, 7313B, 7314B, 7315B, 7316B, 7317B, 7318B, 7319B, 7320B, 7321B, 7322B, and 7323B, Monthly Premium of SLCSP Amount 3.12.2.57.3.10 Fields 7312F, 7313F, 7314F, 7315F, 7316F, 7317F, 7318F, 7319F, 7320F, 7321F, 7322F, and 7323F, Monthly Advance PTC 3.12.2.57.3.11 Field 7324, Total Premium Tax Credit 3.12.2.57.3.12 Field 7325, Advance Premium Tax Credit 3.12.2.58 Section 74, Form 8962, page 2 of 2 (ACA) 3.12.2.58.1 Error Record Format, Section 74 3.12.2.58.2 Invalid Conditions 3.12.2.58.3 Correction Procedures 3.12.2.58.3.1 Fields 7430A, 7431A, 7432A, and 7433A, Policy Number 1/2/3/4 3.12.2.58.3.2 Fields 7430B, 7431B, 7432B, and 7433B, SSN of Filer Sharing Allocation 1/2/3/4 3.12.2.58.3.3 Fields 7430C, 7431C 7432C, and 7433C, Allocation Start Month 1/2/3/4 3.12.2.58.3.4 Fields 7430D, 7431D, 7432D, and 7433D, Allocation Stop Month 1/2/3/4 3.12.2.58.3.5 Fields 7430E, 7431E, 7432E, and 7433E, Premium Percentage 1/2/3/4 3.12.2.58.3.6 Fields 7430F, 7431F, 7432F, and 7433F, SLCSP Percentage 1/2/3/4 3.12.2.58.3.7 Fields 7430G, 7431G, 7432G, and 7433G, Advance PTC Percentage 1/2/3/4 3.12.2.58.3.8 Field 7435A, Primary Alternative Family Size 3.12.2.58.3.9 Field 7435B, Primary Monthly Contribution 3.12.2.58.3.10 Field 7435C, Primary Alternative Start Month 3.12.2.58.3.11 Field 7435D, Primary Alternative Stop Month 3.12.2.58.3.12 Field 7436A, Spouse Alternative Family Size 3.12.2.58.3.13 Field 7436B, Spouse Monthly Contribution 3.12.2.58.3.14 Field 7436C, Spouse Alternative Start Month 3.12.2.58.3.15 Field 7436D, Spouse Alternative Stop Month 3.12.2.58.3.16 Values of Fields 7430C, 7430D, 7431C, 7431D, 7432C, 7432D, 7433C, 7433D, 7435C, 7435D, 7436C, and 7436D 3.12.2.59 Section 75, Form 5695 3.12.2.59.1 Error Record Format, Section 75 3.12.2.59.2 Invalid Conditions 3.12.2.59.3 Correction Procedures 3.12.2.59.3.1 Fields 75001 Through 75004 3.12.2.59.3.2 Field 7505A, Qualified Battery Storage Technology Indicator 3.12.2.59.3.3 Field 7505B, Qualified Battery Technology Costs 3.12.2.59.3.4 Field 7507A, Qualified Fuel Cell Property Indicator 3.12.2.59.3.5 Field 7507C, Joint Occupancy Part I Indicator 3.12.2.59.3.6 Fields 75008 Through 75016 3.12.2.59.3.7 Field 7517A, Qualified Energy Efficiency Improvements Indicator 3.12.2.59.3.8 Field 7517B, Original User Indicator 3.12.2.59.3.9 Field 7517C, Components Expected To Remain In Use Indicator 3.12.2.59.3.10 Field 7520A, Exterior Windows Costs 3.12.2.59.3.11 Field 7521A, Qualified Property Installation Indicator 3.12.2.59.3.12 Field 7521B, Original Service Indicator 3.12.2.59.3.13 Field 7522A, Central Air Conditioner Costs 3.12.2.59.3.14 Field 7523A, Natural Gas Propane Oil Water Heater Costs 3.12.2.59.3.15 Field 7524A, Natural Gas Propane Oil Furnace or Boiler Costs 3.12.2.59.3.16 Field 7525A, Panelboards Circuits or Feeders Costs 3.12.2.59.3.17 Field 7526A, Home Energy Audit Indicator 3.12.2.59.3.18 Field 7526B, Home Energy Audit Costs 3.12.2.59.3.19 Field 7529A, Electric Gas Heat Pump Costs 3.12.2.59.3.20 Field 7529B, Electric Gas Heat Pump Water Heater Costs 3.12.2.59.3.21 Field 7529C, Biomass Stove and Boiler Costs 3.12.2.59.3.22 Field 7532A, Joint Occupancy Part II Indicator 3.12.2.60 Section 76, Form 965-A 3.12.2.60.1 Error Record Format, Section 76 3.12.2.60.2 Invalid Conditions 3.12.2.60.3 Correction Procedures 3.12.2.60.3.1 Fields 76YE1, 76YE2, 76YE3, 76YE4, and 76YE5, Year of Election or Transfer 3.12.2.60.3.2 Fields 76ADI and 76AD4, Additional Data Indicator 3.12.2.60.3.3 Fields 76TL1, 76TL2, 76TL3, 76TL4, and 76TL5, Net Tax Liability Transferred 3.12.2.60.3.4 Fields 76ID1, 76ID2, 76ID3, 76ID4, and 76ID5, Tax Identification Number 3.12.2.60.3.5 Fields 76TR1, 76TR2, 76TR3, 76TR4, and 76TR5, Net 965 Tax Liability Triggered 3.12.2.61 Section 77, Schedule LEP or Form 9000 3.12.2.61.1 Error Record Format, Section 77 3.12.2.61.2 Invalid Conditions 3.12.2.61.3 Field 77PAM, Primary Alternative Media Code 3.12.2.61.4 Field 77PAL, Primary Alternative Language Code 3.12.2.61.5 Field 77SAM, Secondary Alternative Media Code 3.12.2.61.6 Field 77SAL, Secondary Alternative Language Code 3.12.2.62 Section 78, Form 8997 3.12.2.62.1 Error Record Format Section 78 3.12.2.62.2 Invalid Conditions 3.12.2.62.3 Correction Procedures 3.12.2.62.3.1 Fields 781A, 782A, 783A, 784A 3.12.2.62.3.2 Fields 781B, 782B, 783B, 784B 3.12.2.62.3.3 Fields 781D, 782D, 783D, 784D 3.12.2.62.3.4 Fields 781E, 782E, 783E, 784E 3.12.2.62.3.5 Fields 781F, 782F, 783F, 784F 3.12.2.62.3.6 Fields 781AI, 782AI, 783AI, 784AI 3.12.2.62.3.7 Fields 781ST, 782ST, 783ST, 784ST 3.12.2.62.3.8 Fields 781LT, 782LT, 783LT, 784LT 3.12.2.63 Section 79, Form 4136 3.12.2.63.1 Error Record Format, Section 79 3.12.2.63.2 Invalid Conditions 3.12.2.63.3 Correction Procedures 3.12.2.63.3.1 Fields 79A01 through 79C20 3.12.2.64 Section 94, Verified Fields 3.12.2.64.1 Error Record Format, Section 94 3.12.2.64.2 Invalid Conditions 3.12.2.64.3 Correction Procedures 3.12.2.64.3.1 Field 94EXV, Exemption Verified, 8 positions 3.12.2.64.3.2 Field 94PAV, Primary Age Verified 3.12.2.64.3.3 Field 94SAV, Secondary Age Verified 3.12.2.64.3.4 Field 94CEV, Child Tax Credit Number Eligible Verified 3.12.2.64.3.5 Field 94DEV, Credit for Other Dependents Number Eligible Verified 3.12.2.64.3.6 Field 94UTV, Unallowable Tax Verified 3.12.2.64.3.7 Field 94TSV, Taxable Social Security Verified 3.12.2.64.3.8 Field 94SDV, Standard Deduction Verified 3.12.2.64.3.9 Field 94QBV, Qualified Business Income Deduction Verified 3.12.2.64.3.10 Field 94INV, Taxable Income Verified 3.12.2.64.3.11 Field 94TTV, Tentative Tax Verified 3.12.2.64.3.12 Field 94CDV, Child Tax Credit and Other Dependent Credit Verified 3.12.2.64.3.13 Field 94NRV, Total Statutory Credits Verified 3.12.2.64.3.14 Field 94TXV, Total Tax Verified 3.12.2.64.3.15 Field 94EIV, Schedule EIC Earned Income Verified 3.12.2.64.3.16 Field 94AIV, ACTC Earned Income Verified 3.12.2.64.3.17 Field 94ACV, Additional Child Tax Credit Verified 3.12.2.64.3.18 Field 94AOV, Refundable Education Credit Verified 3.12.2.64.3.19 Field 94SEV, Deduction for Self-Employment Tax Verified 3.12.2.64.3.20 Field 94IRV, IRA Deduction Verified 3.12.2.64.3.21 Field 94SLV, Student Loan Interest Deduction Verified 3.12.2.64.3.22 Field 94ARV, Advance Premium Tax Credit Repayment Verified 3.12.2.64.3.23 Field 94EDV, Education Credits Verified 3.12.2.64.3.24 Field 94RTV, Retirement Savings Contribution Credit Verified 3.12.2.64.3.25 Field 94REV, Residential Clean Energy Credit Verified 3.12.2.64.3.26 Field 94EEV, Energy Efficient Home Improvement Credit Verified 3.12.2.64.3.27 Field 94CVV, Clean Vehicle Credit Verified 3.12.2.64.3.28 Field 94POV, Previously Owned Clean Vehicles Credit Verified 3.12.2.64.3.29 Field 94PTV, Net Premium Tax Credit Amount Verified 3.12.2.64.3.30 Field 94ESV, Excess Social Security Tax Withheld Verified 3.12.2.64.3.31 Field 94OPV, Total Other Payments and Refundable Credits Verified 3.12.2.64.3.32 Field 94P2V, New Clean Vehicles Business Credit Verified 3.12.2.64.3.33 Field 94P5V, Commercial Clean Vehicle Credit Verified Exhibit 3.12.2-1 Action Codes Exhibit 3.12.2-2 Computer Condition Codes Exhibit 3.12.2-3 Return Processing Codes Exhibit 3.12.2-4 Special Processing Codes Exhibit 3.12.2-5 Forms Processing Codes Exhibit 3.12.2-6 Audit Codes Exhibit 3.12.2-7 Unallowable Codes Exhibit 3.12.2-8 Credit-Reduction States and Territories Exhibit 3.12.2-9 Letter 12C Fill-in Paragraphs Exhibit 3.12.2-10 Reasonable Cause for Late Filing or Late Payment (in limited situations) and Failure to Make Estimated Tax Payments Properly Exhibit 3.12.2-11 Three-Digit ZIP Codes Exhibit 3.12.2-12 Attachment Guide Exhibit 3.12.2-13 Examples of Self-Employment Income Exhibit 3.12.2-14 Frivolous Filer Definitions Exhibit 3.12.2-15 Glossary/Acronyms Part 3. Submission Processing Chapter 12. Error Resolution Section 2. Individual Master File Error Resolution General Instructions 3.12.2 Individual Master File Error Resolution General Instructions Manual Transmittal November 01, 2024 Purpose (1) This transmits revised IRM 3.12.2, Error Resolution Individual Master File General Instructions. Material Changes (1) IRM 3.12.2.1.5(3) Added Program Control requirements for FixERS tool. (2) IRM 3.12.2.2.1 Updated references to current year as Tax Year 2024 (TY24) here and throughout the IRM. (3) IRM 3.12.2.2.4 Revised the subsection title. (4) IRM 3.12.2.2.5.2.1 Deleted the reference to Form 6001-A here and throughout the IRM. (5) IRM 3.12.2.2.5.2.2 Removed the reference to use the current date if the return was timely received. (6) IRM 3.12.2.2.5.2.3(1) Added a reference to Discovered Remittance IRM 3.8.46. IPU 24U0488 issued 04-05-2024. (7) IRM 3.12.2.2.5.2.4 Changed the reference from Married Filing Jointly (MFJ) to Filing Status Code 2 (FSC2) here and throughout the IRM. (8) IRM 3.12.2.2.12(6) Added a link to Form 3696-A for Second Correspondence and Non-Pending Letters. IPU 24U0488 issued 04-05-2024. (9) IRM 3.12.2.2.12 (9) Corrected the web address for the Letters Job Aid and IAT website. IPU 24U0292 issued 02-26-2024. (10) IRM 3.12.2.2.13.5(2) Added a link to Form 3696-A for Second Correspondence and Non-Pending Letters. IPU 24U0488 issued 04-05-2024. (11) IRM 3.12.2.3.6(5) Updated the address for Innocent Spouse claims. IPU 24U0488 issued 04-05-2024. (12) IRM 3.12.2.3.7 Updated the list of forms, attachments, and notations to identify international returns and added an exception for electronically filed returns. (13) IRM 3.12.2.3.12 Revised procedures for conversion of returns, and removed obsolete procedures for Form 1040A and Form 1040EZ. IPU 24U0488 issued 04-05-2024. (14) IRM 3.12.2.3.13 Deleted obsolete procedures for Form 1040A and Form 1040EZ. IPU 24U0488 issued 04-05-2024. (15) IRM 3.12.2.3.15 (1) and (2) Updated procedures for Re-entry Returns. IPU 24U0292 issued 02-26-2024. (16) IRM 3.12.2.3.17(1) Added a table of the two-digit campus codes for CMODE. (17) IRM 3.12.2.3.20(3) (c) Added a period to the end of the sentence. IPU 24U0012 issued 01-02-2024. (18) IRM 3.12.2.4.3.6(4) Clarified requirements for second name line in Field 01NL2. IPU 24U0546 issued 04-22-2024. (19) IRM 3.12.2.4.3.10(3) Corrected the non-ADP tax period. (20) IRM 3.12.2.4.3.11(2) Added Special Processing Codes 3, H, and Q. (21) IRM 3.12.2.4.3.14(4) Updated descriptions of exemption positions, and deleted obsolete information on Form 1040A and Form 1040EZ. IPU 24U0488 issued 04-05-2024. (22) IRM 3.12.2.4.3.20(4) and (6) Revised requirements for received date in Field 01RCD. IPU 24U0546 issued 04-22-2024. (23) IRM 3.12.2.4.3.20(7) (8) and (11) Revised procedures to correct Field 01RCD on all returns, including timely filed. IPU 24U0334 issued 03-04-2024. (24) IRM 3.12.2.4.3.24(4) Updated input values for Field 01DAC. IPU 24U0012 issued 01-02-2024. (25) IRM 3.12.2.5.5(5) Revised the priority of determining the correspondence reply date. IPU 24U0643 issued 05-13-2024. (26) IRM 3.12.2.5.11(1) Removed references to BOE research here and throughout the IRM. (27) IRM 3.12.2.6 Removed references and instructions for Fields 03NCC, 03HCR, 03U19, 03PYE, and 03RRC. (28) IRM 3.12.2.6.3.3(2) Added Error Code 201 to the list of references. (29) IRM 3.12.2.6.3.35 Revised the reference to Refundable Child Tax Credit (RCTC) for TY21. (30) IRM 3.12.2.6.3.40 (1) Updated the Overpaid line number on Form 1040. (31) IRM 3.12.2.6.3.43 Corrected the prior year 3rd Party Designee procedures. (32) IRM 3.12.2.6.3.46 Corrected the priority order to correct Field 03EMW if multiple boxes are checked. (33) IRM 3.12.2.7. Added instructions for new Field 04KAM, Form 1099-K Amount. (34) IRM 3.12.2.7.3.9 (1) Added clarification that Field 04SFG is transcribed for TY22 and later. (35) IRM 3.12.2.7.3.21(2) Added an instruction to revalidate using Field 02RI when the entry in Field 04SSN is corrected. (36) IRM 3.12.2.8 Changed Field 05202 to 0521A, Field 05201 to 05202, and Field 05CTR to 05PYC; added references and instructions for Fields 0521B, 0521C, 0521D, 0521E, 05PCK, 0521F, 05TCK, 0521Y, 05EPR, and 05EPA; and removed references and instructions for Fields 05SFL, 05HCC, 05RCC, and 05SL2. (37) IRM 3.12.2.8.3.48(2) Changed the reference from Error Code (EC) 121 to 342. (38) IRM 3.12.2.10 Removed references and instructions for Field 07MIP, Qualified Mortgage Insurance Premiums. (39) IRM 3.12.2.10.3.25 Added instructions to refer to EC 250 and International Returns. (40) IRM 3.12.2.11.3.4 Added instruction when both Yes and No boxes are checked, here and throughout IRM. (41) IRM 3.12.2.13(3) Clarified procedures when Form 8949 is edited with Z or Y code. (42) IRM 3.12.2.19 Updated the title of Schedule J for TY24. (43) IRM 3.12.2.20 Removed references and instructions for Field 21ABD. (44) IRM 3.12.2.20.3.5(2) and (5) Added instructions to enter SPC D when an acceptable explanation is provided in lieu of provider TIN. (45) IRM 3.12.2.21 Added instructions for updated field names and line numbers in Section 22 for Form 3800. (46) IRM 3.12.2.22 Added instructions for updated field names and line numbers in Section 23 for Form 3800. (47) IRM 3.12.2.22.1 Corrected Field 234KJ in Section 23. IPU 24U0012 issued 01-02-2024. (48) IRM 3.12.2.22.3.2(2) Corrected Field Name 23CHS. IPU 24U0012 issued 01-02-2024. (49) IRM 3.12.2.30(2) Updated the amount for Form 8615 to $2,600. (50) IRM 3.12.2.32(1) and (2) Updated the amount for Form 8839 to $16,810. (51) IRM 3.12.2.35.3.6(3) Added child, sibling, and step sibling to the listed relationships. (52) IRM 3.12.2.36 Changed Field 4401A to 4401, and 4408D to 4408; removed references and instructions for Fields 4401B, 4408B, 4408C, 4408E, and 4408F; and updated the social security wage maximum and minimum amounts for TY24. (53) IRM 3.12.2.36.1 (1) Corrected tax years listed for Field 4401B, Field 4408C, and Field 4408E. IPU 24U0292 issued 02-26-2024. (54) IRM 3.12.2.37 Removed references and instructions for Field 47ABD, 8812 Principal Abode Indicator. (55) IRM 3.12.2.44 Changed Field 5604 to 5604A, and Field 5607 to Field 5604; and revised instructions for the bond fields on TY23 and prior returns. (56) IRM 3.12.2.48(1) Clarified conditions when Action Code 430 is edited and added link to Community Property procedures. IPU 24U0703 issued 05-30-2024. (57) IRM 3.12.2.51.3(5) Updated example for Field 6719. IPU 24U0012 issued 01-02-2024. (58) IRM 3.12.2.53 Added instructions for new Fields 69PYF,69SR1, 69RI1, 69SR, and 69RI2. (59) IRM 3.12.2.53.1 Added applicable tax years to Section 69 fields. IPU 24U0057 issued 01-05-2024. (60) IRM 3.12.2.59 Added instructions for new Fields 7507C and 7532A. (61) IRM 3.12.2.59.3.4 (1) Added procedures for Field 7507A. IPU 24U0292 issued 02-26-2024. (62) IRM 3.12.2.59.3.5(2) Added a table with examples showing the format of Field 75010. IPU 24U0703 issued 05-30-2024. (63) IRM 3.12.2.61(2) Added information on processing Form 9000. (64) IRM 3.12.2.62.3.3(5) Updated the invalid and valid conditions for the Form 8997 special gain codes. (65) IRM 3.12.2.64 Added instructions for new Fields 97REV and 94EEV; removed references and instructions for Fields 946EV, 94RRV, and 94RCV. (66) Exhibit 3.12.2-1 Removed Action Code 336 from chart. IPU 24U0012 issued 01-02-2024 (67) Exhibit 3.12.2-1 Corrected the number of calendar days for Action Code 481 and 484. IPU 24U0546 issued 04-22-2024. (68) Exhibit 3.12.2-3 Changed the explanation of Return Processing Code 9 to reserved. IPU 24U0746 issued 06-11-2024. (69) Exhibit 3.12.2-3 Updated valid Return Processing Codes for TY24. (70) Exhibit 3.12.2-4 Added a condition for Special Processing Code C. IPU 24U0292 issued 02-26-2024. (71) Exhibit 3.12.2-4 Added Special Processing Code 5 and explanation to the table. IPU 24U0746 issued 06-11-2024. (72) Exhibit 3.12.2-4 Updated valid Special Processing Codes for TY24. (73) Exhibit 3.12.2-6 Added a condition for Audit Code B. IPU 24U0292 issued 02-26-2024. (74) Exhibit 3.12.2-6 Added Audit Code M and explanation to the table. IPU 24U0746 issued 06-11-2024. (75) Exhibit 3.12.2-6 Revised the explanation of Audit Code W. (76) Exhibit 3.12.2-7 Removed Unallowable 70 information per request from Exam. IPU 24U0292 issued 02-26-2024. (77) Exhibit 3.12.2-8 Updated TY23 credit reduction states. IPU 24U0012 issued 01-02-2024. (78) Exhibit 3.12.2-9 Corrected line and part numbers in fill-in paragraphs 26, 27, and 30. IPU 24U0703 issued 05-30-2024. (79) Exhibit 3.12.2-9 Added fill-in paragraph 43 to request Form 8936 Schedule A. (80) Exhibit 3.12.2-12 Added a reference to Discovered Remittance IRM 3.8.46. IPU 24U0488 issued 04-05-2024. (81) Exhibit 3.12.2-14 Removed IRC 1341 from the list of frivolous filer definitions. IPU 24U0703 issued 05-30-2024. (82) Editorial changes have been made throughout this IRM including spelling, punctuation, removal and update of field names, naming of Form changes, annual updates, corrected typos, plain language, updated error code references to current year programming, and Form and Schedule line numbers for TY24. (83) IRM 3.12.2 revised throughout to update organization title Wage and Investment to Taxpayer Services. IPU 24U0546 issued 04-22-2024. Effect on Other Documents IRM 3.12.2, Individual Master File Error Resolution General Instructions, dated November 03, 2023 (effective January 1, 2024) is superseded. Incorporated the following IRM Procedural Updates (IPUs): 24U0012 dated 01-02-2024, 24U0057 dated 01-05-2024, 24U0292 dated 02-26-2024, 24U0334 dated 03-04-2024, 24U0488 dated 04-05-2024, 24U0546 dated 04-22-22024, 24U0643 dated 05-13-2024, 24U0703 dated 05-30-2024, and 24U0746 dated 06-11-2024. Audience Individual Master File (IMF) Error Resolution Departments, Taxpayer Services (TS) Submission Processing Centers Effective Date (01-01-2025) James L. Fish Director, Submission Processing Taxpayer Services Division 3.12.2.1 (01-01-2023) Program Scope and Objectives 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. Audience: These procedures apply to the Internal Revenue Service (IRS) employees who correct errors on tax returns in ERS including: Lead ERS Tax Examining Technicians and ERS Tax Examining Technicians Policy Owner: The Director of Submission Processing oversees the policies in this IRM. Program Owner: The Code & Edit/ERS Section of the Return Processing Branch of Submission Processing is the program owner of this IRM. Primary Stakeholders: Submission Processing (SP) and Modernized e-File (MeF) Program Goals: Correct all errors identified by the Error Resolution System (ERS). 3.12.2.1.1 (11-27-2020) Background The Error Resolution System (ERS) is an online computer application used by tax examiners to correct errors identified on tax returns during Generalized Mainline Framework (GMF) processing in compliance with USC Title 26. 3.12.2.1.2 (01-01-2023) Authority USC Title 26 provides authority by defining tax law and requirements. Internal Revenue Code (IRC) 6213(b) provides the authority for resolution of mathematical and clerical errors identified during processing of tax returns. Policy Statements for Submission Processing are contained in IRM 1.2.1.4, Policy Statements for Submission Processing Activities. 3.12.2.1.3 (01-01-2023) Responsibilities The SP Director monitors operational performance for the Submission Processing campuses. The Operations Manager monitors operational performance for their operation. The team manager/lead monitors performance and ensures employees have the tools to perform their duties. The team employees follow the instructions contained in this IRM and maintaining updated IRM procedures. Control clerks monitor the control of error documents. Inventory control procedures are described in IRM 3.12.37, Error Resolution, IMF General Instructions. 3.12.2.1.4 (01-01-2023) Program Management and Review Program Reports: The Monitoring Section under Submission Processing Program Management/Process Assurance monitors the ERS reports following procedures in IRM 3.30.124. 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 Annual Review: This IRM is updated and reviewed annually to ensure accuracy and promote consistent tax administration. Review and concurrence is performed by affected offices according to the clearance process established in IRM 1.11.9, Internal Management Documents, Clearing and Approving Internal Management Documents (IMD), prior to publishing. 3.12.2.1.5 (01-01-2025) Program Controls All tax examiners must submit a request via the Business Entitlement Access Request System (BEARS). This request must be approved by management before the employee gains access to the Error Resolution System. Tax returns in ERS are worked on a first in first out (FIFO) basis as they are received from input systems through the General Mainline Framework (GMF). FixERS tool is to be run each day. Returns suspended with Action Code 484 by the FixERS tool should be worked within two business days. 3.12.2.1.6 (01-01-2023) Terms and Acronyms The list of terms and/or abbreviations used throughout this IRM are located in Exhibit 3.12.2-15. 3.12.2.1.7 (01-01-2025) Related Resources Use the following required websites, job aids, and tools to complete the work.: 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, No Reply returns, and Taxpayer Notice Code exhibit 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 - Prior Year Job Aid Job Aid Book 2515-015 Error Resolution System (ERS) for Individual Master File Documents - Current Year Job Aid Job Aid Book 2515-019 Error Resolution System (ERS) for Individual Master File Documents - Job Aid for ERS Managers Document 7071 Name Control Job Aid for Individual Master File (IMF) Taxpayers 3.12.2.2 (01-01-2017) General Information The general information contained in this subsection of the manual are: Correction Requirements Perfecting the Tax Return and Field Error Screen Display Command Codes ERS Action Codes Revalidating with OLE Taxpayer Notice Code (TPNC) Computer Assisted Review of Error Resolution System (CARE) Computer Assisted Pipeline Review (CAPR) Correspondence Procedures Types of Errors 3.12.2.2.1 (01-01-2025) Introduction 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: Errors made by taxpayers and tax preparers Errors made by other IRS employees or IRS programming during return processing ERS will place error records into the Error Inventory. When the error record displays on the computer screen, the tax examiner will take one of the following actions: Correct the displayed section or field errors. Suspend the document for more information or removal from pipeline processing. The instructions in this manual are for Form 1040, Form 1040(SP), Form 1040-SR, and Form 1040-SR(SP). Form 1040A and Form 1040EZ were made obsolete in Tax Year 2018 (TY18); all Forms 1040A or 1040EZ must be converted to Form 1040 before processing. Form 1040-SR was introduced in Tax Year 2019 (TY19). The fields and line numbers of Form 1040-SR are identical to Form 1040 with a larger font size and expanded form length. Form 1040(SP) and Form 1040-SR(SP) are Spanish-language versions of Form 1040/1040-SR with the same fields and line numbers as Form 1040. All instruction for Form 1040 applies equally to Form 1040-SR, 1040(SP) and Form 1040-SR(SP). Form 1040-SR will be processed with Document Code 05 or 06 in the document locator number. ERS section and error code screen displays for all returns have been realigned to follow the layout of TY24 Form 1040. Fields in Sections 01 through 05 are aligned as follows: Section 01 - Entity portion of TY24 Form 1040 Section 02 - Form 3471 Edit Sheet Section 03 - TY24 Form 1040, page 1, line 1 through entire page 2, including paid preparer information. Section 04 - TY24 Form 1040, Schedule 1 Section 05 - TY24 Form 1040, Schedule 2 and 3 Note: Prior year Form 1040 will follow the same format with field designators realigned according to TY24 Form 1040 layout. Throughout this manual, forms will be referred to by numbers and schedules will be referred to by letters and numbers. The following introductory information is contained in this subsection of the manual: General Guidelines Organization of Text 3.12.2.2.2 (01-01-2025) General Guidelines 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. Lines in this manual marked with # are for official use only and must not be disclosed. This manual is the main source of information for correcting the error record on the computer screen and the related return. Refer to IRM 3.12.2.1.7, Related Resources. Note: Use the instructions in other IRMs only when specifically instructed in this IRM to do so. When a conflict between any reference, job aid, or training material and this manual occurs, the manual instructions take precedence. Deviations from procedures in this IRM may be granted only in accordance with the policy set forth in IRM 1.11.2.2.3, When Procedures Deviate from the IRM. 3.12.2.2.3 (05-04-2017) Organization of Text This manual is organized so that correction procedures can be located quickly. All related procedures are contained in a single location, whenever possible. The text is organized as follows: General Information Special Procedures Field Errors (Priority III) Exhibits 3.12.2.2.4 (01-01-2025) Correction Requirements Records will be placed into the Error Inventory or the Workable Suspense Inventory for correction. Note: If your site is helping the primary site with MeF ERS 100 work, TE’s will first need to use CC CMODE to access and update taxpayer records on another campus’ database. Refer to IRM 3.12.2.3.17 You must do one of the following when the error record displays on the screen: Correct the displayed field error or displayed invalid conditions. Suspend document for more information. Reject document from pipeline processing Note: If your site is assisting the primary site with MeF ERS 100 work, the helping site is required to issue the correspondence and use the primary site’s signature code. All Unpostables, Entity, Accounting Function, Review or Reject function issues are the responsibility of the primary site. ERS screen display corrections may also include correcting errors in editing and transcription on the return. 3.12.2.2.5 (01-01-2017) Perfecting the Tax Return and Error Screen Display 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) 3.12.2.2.5.1 (01-01-2023) Document Locator Number The document locator number (DLN) is a unique number assigned to every return processed by the Automatic Data Processing (ADP) Systems. The DLN is used to control, identify and locate a document. 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 3.12.2.2.5.1.4, Mixed Data on Paper Returns. If there is an additional document in your block of work (e.g., the document does not have a DLN, or the DLN does not match the block of work), take it to the manager of the Control/Clerical team for resolution. 3.12.2.2.5.1.1 (01-01-2025) Julian Date A Julian date is the numeric day of the year. Example: April 18, 2025, is Julian Date 108, the 108th day of 2025. The sixth, seventh and eighth digits of a DLN make up the Julian date. 3.12.2.2.5.1.2 (01-01-2017) Sequence Number The twelfth and thirteenth digits of the DLN are the sequence number. Returns in a block are numbered from "00" to "99" . The maximum number of returns in a numbered block is 100. Numbered returns in a block must stay in sequence number order. 3.12.2.2.5.1.3 (01-01-2023) Missing Blocks/Returns If a block of work is missing, notify the manager of the Control/Clerical team. The manager will coordinate with the Data Conversion Control team and/or Accounting Data Control team to locate the missing block. If a document is missing from a block of work, take the entire block to your manager. Your manager will notify the Control/Clerical team, who will coordinate with Data Conversion Control team and/or Accounting Data Control team to locate the missing document. 3.12.2.2.5.1.4 (01-01-2017) Mixed Data on Paper Returns Before making any corrections to the error screen display, make certain that the DLN on the screen display matches the DLN on the document. Mixed data situations exist when either of the following are present: Information from two different tax returns display on the error record under one DLN. The information on the return for the DLN does not match the return on the screen display. Take the following actions on mixed data: Stop processing block of work. 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. 3.12.2.2.5.2 (01-01-2017) Corrections Correct coding and transcription errors and misplaced entries on displayed fields to ensure taxpayer's entries are in the appropriate fields of the tax return. Refer to all instructions for each field error. 3.12.2.2.5.2.1 (01-01-2025) Internal Use Forms Form 3471, Edit Sheet - This form is used to edit unallowable conditions. Generally edited by Code and Edit or Examination. Form 4227, Intra-SC Reject/Routing - This form is used when special conditions require more research, referral and/or action before document can be processed. Form 6001, Letter 12-C Correspondence Action Sheet is used to generate a Letter 12-Cto the taxpayer asking for more information needed to continue processing their tax return. 3.12.2.2.5.2.2 (01-01-2025) Working Trails 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. Working trails can contain the following: TIN Information about detached documents (e.g., detached Form 1040-X, etc.) Write a working trail on any detached document. The following information must be indicated in the working trail of the detached document: The received date of the return Tax period of return in YYYYMM format 3.12.2.2.5.2.3 (04-05-2024) Attachments to Returns Take the action described in Exhibit 3.12.2-12, Attachment Guide, when you are led to and find taxpayer correspondence or attachment to a return. Note: You are not required to research for attachments or correspondence unless specifically instructed to do so in the section or error code; however, 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, EIP prepaid debit cards, etc. If a check, money order, or other item of value is found, immediately inform your manager or lead tax examiner, and refer to IRM 3.8.46, Discovered Remittance. 3.12.2.2.5.2.4 (01-01-2025) Signature Requirements 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 [or the signature of both taxpayers if Filing Status Code 2 (FSC 2), married filing jointly], the return is not an official document and may not be processed. Inspect all returns for original signatures. If an original signature is present in the correct location, accept the taxpayer’s signature and continue processing the return. If the taxpayer signed elsewhere but arrowed their signature to the correct location, accept the taxpayer’s signature and continue processing. If the signature is faxed or scanned, see IRM 3.12.2.2.5.2.4 (3) below. If an FSC 2 return has only one signature, see IRM 3.12.2.2.5.2.4 (4) below. If the return is signed by someone other than the taxpayer or if only one signature is present on an FSC 2 return, review the return for indications of a Power of Attorney and see IRM 3.12.2.2.5.2.4 (5) below. If the taxpayer is a minor child, see IRM 3.12.2.2.5.2.4 (6) below. If you cannot determine whether the signature is original, SSPND 211 to correspond for an original signature. Review the additional exceptions listed in IRM 3.12.2.2.5.2.4 (7) below. If a return is unsigned and none of the above apply, SSPND 640 to send the return to Rejects. Faxed or scanned signatures: Accept as valid signatures only if: Signature was received as a Reject reply via fax. Received from Taxpayer Advocate Service (TAS). Received from an IRS area, such as Substitute for Return (SFR) returns, Collections (returns marked "59XXX" , excluding "59918" ) or Accounts Management (Correspondence Imaging Inventory (CII) returns). Returns are stamped by RIVO (including Handwritten "RIVO" or "RIVO reviewed" ). Return are edited with SPC "B" or "M" Copies with the remark "Process as Original (PAO)." Electronic return prints with an IRSN processed as an original, even when no copy of Form 8453 is attached, or when the electronically filed return was signed with a PIN. Joint returns: Joint returns require the original signature of both taxpayers. Accept the signature of one taxpayer on an FSC 2 return only if: One taxpayer is deceased and there is an indication that the signing taxpayer is filing as the surviving spouse There is an indication of "POW" (prisoner of war) or "MIA" (missing in action) A statement is attached that one spouse is unable to sign the return due to health reasons There is an indication that one spouse is in a combat zone or qualified hazardous duty area A POA is attached granting the signing spouse signature authority for the other taxpayer. A POA is required even if the taxpayer indicates their spouse is overseas (including military if there is no notation of combat zone/hazardous duty area) or the taxpayer states they received advance permission from IRS. Power of Attorney/Form 2848, Power of Attorney and Declaration of Representative: If a Power of Attorney (POA) or Form 2848 is attached, the designated individual may sign on behalf of the taxpayer. One original signature is acceptable on a joint return when the POA is valid for both taxpayers. Note: If a guardian, personal representative, executor, trustee, or fiduciary files the return, it must have an original signature. Supporting documentation that the appointee has the legal right to file on behalf of the taxpayer may also be required. See IRM 3.12.2.3.18, Deceased Taxpayer for related information. Minor Child: If the taxpayer is a minor child and the tax return is: 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. Signed by a guardian or other fiduciary designee, it requires documentary evidence ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See IRM 3.11.3.11.1, Documentary Evidence Requirements. Exceptions: Do not suspend for a missing original signature in the situations described below: "Substitute for Return Prepared by IRS" is noted, a signed Form 1040-X, Amended U.S. Individual Income Tax Return, is attached for the same period with an original signature, "See 1040-X" is noted, or "dummy" return. "Section 6020(b)" or "prompt assessment" is noted or Form 4810, Request for Prompt Assessment Under IR Code Section 6501(d), is attached. 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. The return comes from Exam, Collection, or Accounts Management and "Process as Original" (PAO) is present on the return. An employee's Integrated Data Retrieval System (IDRS) number is present on the signature line. Taxpayer has signed an attached CP 59 or Letter 143-C on the "Sign Here" line. CSCO will note in the "Sign Here" area whether the taxpayer has signed under the jurat of the CP 59 or Letter 143-C. 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. There is an indication of TRPRT (transcript of a return). Computer Condition Code (CCC) "3" is already present. The return is from the Correspondence Imaging Inventory (CII). Paper-printed MeF returns that are sent from TAS. Efile Graphic Print (includes when the notation is circled out or lined through.) Form 8453/Form 8878/Form 8879: Permit electronic and digital signatures on these forms per the Temporary Deviation from Handwritten Signature Requirement for Limited List of Tax Forms. Do not correspond for original signature on these forms if electronically or digitally signed and received on or after August 28, 2020. 3.12.2.2.5.2.5 (01-01-2019) Fields Not Visible in Error Code 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: 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. Error code screens have 3 columns and 19 rows for a total of 57 fields. The number of fields displayed for an error code cannot exceed 57 fields. Instructions have been added to use command code GTSEC to make corrections to a field that does not display on the error code screen that is necessary for the resolution of the error code. 3.12.2.2.5.2.6 (01-01-2017) Missing Schedules 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. GTSEC XX to call up the section and enter all appropriate fields. 3.12.2.2.5.2.7 (11-27-2020) Money Fields Refer to each section for specific information on fields transcribed as dollars only or dollars and cents. 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. Any correction to a field with ** must be entered in dollars only. Any correction to a money amount field without ** must be entered in dollars and cents. MeF returns are dollars only. 3.12.2.2.5.2.8 (01-01-2017) Clear Code C and 000 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: Correcting the error condition and transmitting. Enter C in the Clear Field, when no correction is needed. Note: If a correction is made, you must transmit before entering the clear code C. Unfinished records from the previous day will not contain any of the C clear codes that were assigned to the record. All clear codes on unfinished records are removed by the system for the new day's inventory. Programming will erase all C clear codes when a record has been suspended with CC SSPND. Use the numeric 000 as a clear code to delete an invalid or erroneous action code when there is no reason to suspend the record. Clear Action Codes 410 and 700 before resolving other errors in a record. All other action codes, enter C in the Clear Field after corrections for the action code have been completed. 3.12.2.2.5.2.9 (11-27-2020) Entity Information 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: Written notification signed by the taxpayer informing the IRS they want their address changed. Form 8822, Change of Address, is attached to the return. Enter as intermediate or long entity. When IRS correspondence is returned by the taxpayer with new address information, input changes according to the information received. No signature is required on the address change. 3.12.2.2.5.2.10 (01-01-2022) State Income Tax Returns/Payments or Contributions to Reduce the Public Debt State Income Tax Return: If attached, detach the state income tax return and route to Receipt and Control. Receipt and Control will route the return to the appropriate state taxing agency. State Income Tax Payments: If the state income tax return is not attached, but the taxpayer is attempting to pay state income tax, assign TPNC 298. If a check made out to the Bureau of Public Debt is found attached to the return, route to Receipt and Control. 3.12.2.2.6 (11-27-2020) Command Codes Use the appropriate Command Codes (CC) when correcting the Error Inventory and the Workable Suspense Inventory or when more research is necessary. The ERS and IDRS Command Codes are as follows: ERS COMMAND CODE DESCRIPTION CMODE Used to access and update taxpayer records on another campus’ database. CRECT Used to enter a correction. DLSEC Used to delete a section from the data record. ERINV Used to research a DLN or TIN on the ERS Control File. GTREC Used to access the first error in a block in the Error Inventory or a specific record in the Workable Suspense Inventory. It can also be used to redisplay any uncorrected error. GTSEC Used to obtain the display of any section of a record in process. NWDLN Used to change (renumber) the DLN and MFT of the record and reject the record. QRSEL Used to select tax records to stay on ERS Database one additional day to allow for Quality Review or rework. Definer E is used to select MeF returns. Definer R is used to select returns for CARE REVIEW. RJECT Used to reject a record from ERS. SSPND Used to enter an Action Code and place a record in suspense. TRDBV Used to obtain the display of edited, transcribed, and corrected data from electronic returns and Telefile returns for tax year 1998 and later. TRERS Used to display return in Rejects only when return was an unpostable. IDRS COMMAND CODE DESCRIPTION ENMOD Used to request the entity module for a specific Taxpayer Identification Number. ENREQ Used to input entity changes for all master files. ENREQR Used to input CC IRCHG. IMFOL Will display entity and tax module information on-line for query access. INCHG Response to CC ENREQ for IMF and IRAF accounts. This is a generated command code with a screen format. INOLE Used to access the most current entity data from the national (NAP) files. IRPOL Research Form 1095-A, Form 1095-B, and Form 1095-C. IRCHG Response to CC ENREQR. Used to add a name control to the valid name controls for a given TIN (make an account IRS valid). Initiates an account merge of the valid and invalid TINs for a given account. IRPTR Contains entity data, cross reference information, DOD/DOB, and income summary information. CC IRPTR is available for researching information (before or after correspondence), to determine items such as gross social security benefits, withholding, social security tax withheld, and Medicare tax withheld. IRPTR is updated monthly. On-line research is available for ten years. IRPTR data will be available as information is processed and is continually updated, per IRM 2.3.35. NAMEB Name and address data is entered to research a missing EIN. NAMEE Name and address data is entered to research a missing EIN. NAMEI Name and address data is entered to research a missing SSN. NAMES Name and address data is entered to research a missing SSN. RTVUE Contains edited, transcribed, and corrected data from data entry lines of returns and related forms and schedules filed in the current processing year (including two prior tax years). TXMOD Used to research a specific tax period for a specific type of tax. Note: more 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. When IDRS is unavailable, SSPND 351. 3.12.2.2.7 (01-01-2025) Error Resolution System (ERS) Action Code An ERS Action Code indicates that the document is missing specific information, must be suspended, and/or must be removed from processing. The ERS Action Code definitions in Exhibit 3.12.2-1 indicate if correspondence, in-house research, or other action(s) are required. Action Codes which are edited to the lower center margin of the return indicate actions taken by Code and Edit (C&E) tax examiners. Correspondence Action Sheet (Form 6001) is attached by C&E when initiating correspondence. When routing within the campus for in-house research it is not necessary to provide further explanation unless specific instructions exist. Any Action Code assigned by C&E is transcribed and will always display as a Priority 1 Error. 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 C&E or transcribed by ISRP is invalid or incomplete, use 000 as a Clear Code to delete the Action Code. Note: Only one Action Code can be assigned at a time . Enter a valid Action Code with CC SSPND to clear the record from the screen and place it in either Workable or Unworkable Suspense. 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. Enter an Action Code with CC NWDLN to delete the record from ERS and the SCCF and establish a new DLN for input. 3.12.2.2.8 (01-01-2017) Revalidating With OLE ERS allows for the on-line revalidation of the TIN and name control using the Online Entity System (OLE). Corrections made in ERS to TIN and Name Control will revalidate by accessing the National Account Profile (NAP). The Error Codes where this occurs for primary taxpayers are as follows: Error Code 003 Error Code 004 Error Code 005 Error Code 006 Error Code 007 Error Code 008 Error Code 009 Error Code 011 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 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 3.12.2.2.9 (04-19-2023) Taxpayer Notice Code (TPNC) 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. The TPNC entered will print on the notice sent to the taxpayer to explain the change(s) made to the return. Once a code is transmitted to the record, it cannot be changed unless a correction causes an Error Code with a higher priority or a correction erases an Error Code previously cleared with a TPNC. See IRM 3.12.2.2.13.4(4) and (5). A TPNC assigned on an Error Code will redisplay on subsequent displays of that record. ERS can automatically process up to five TPNCs. If more than five TPNCs are required, enter TPNC 100 in the fifth position. See IRM 3.12.2.2.9 (10) below. Converted returns: When correspondence is required to correct a converted return, assign TPNC 111 as the first TPNC. Assign the appropriate TPNC to describe the error condition. Note: TPNC 111 informs the taxpayer that the return was converted to a Form 1040. If the same math error code redisplays, the TPNC assigned may not be valid for that Error Code. See error code instructions in IRM 3.12.3 for a list of valid TPNCs. Note: If the appropriate TPNC is not listed as an allowable TPNC for the error code, SSPND 470 and take the return to your lead tax examiner. If the lead determines after review that the TPNC must be added to the error code, send a copy of the paper return or the MeF DLN to P&A analyst and HQ analysts. If you need to change information on the screen and assign a TPNC; Correct the appropriate field(s) Transmit When the Error Code redisplays, assign the TPNC(s). Caution: Enter TPNCs only after you have determined no other corrections to the screen display are needed. Ripple Errors: An error may ripple through a return, changing the taxpayer's figures that were originally correct. These ripple errors, especially changes in AGI and taxable income, can cause error codes to display that would not otherwise have generated. If an error code is the direct result of a ripple error, assign any previously assigned TPNC. Example: If the taxpayer’s AGI was incorrect, changing it may cause ripple errors to the taxpayer’s taxable income, tax, or other calculated amounts. Caution: Use caution when entering any previously assigned TPNC. Taxpayer’s must be advised of all errors that are present on the return. Use TPNC 100 and take the appropriate action when the following apply: If using TPNC 100 Then A] As the fifth TPNC when more than five TPNCs apply Indicate that there are more than five TPNCs. Complete a TPNC 100 slip, or equivalent form with all applicable TPNCs (including TPNC 100). Attach the form below the entity section on the front of the return. Note: Notice Review will retype the notice to include all applicable TPNCs B] On electronic returns GTSEC 01 and print the entity screen display. Follow the appropriate instructions from A] above to complete a TPNC 100 slip or equivalent. Attach the completed form to the Section 01 screen print. Place the Section 01 screen print in t designated area for electronic returns with TPNC 100. Note: Fax all Section 01 prints with TPNC 100 to the primary center daily. Note: The list of allowable TPNCs shown at the end of each math Error Code displays only a short description of the actual literal. See Exhibit 3.12.3-1 for a complete list of TPNCs with the actual literals. If any of the following apply, indicate on Form 4227 the error condition and TPNCs that would be assigned and SSPND 640 to return to originator: Substitute for Return Prepared by IRS under authority of Section 6020(b). An assessment made from Form 2859, Request for Quick or Prompt Assessment. The return is an Examination adjustment case, identified as Secured by Examination. Form 3198, Special Handling Notice for Examination Case Processing, is attached. Note: If the originator has indicated that a TPNC can be sent, you may assign one. 3.12.2.2.10 (11-27-2020) Computer Assisted Review of Error Resolution System (CARE) Computer Assisted Review of Error Resolution System (CARE) is the online quality review of Taxpayer Notice Codes (TPNC) initiated by the Error Resolution System (ERS). CARE is used to identify incorrect or erroneous TPNCs. TPNCs corrected by CARE prevent delays in refunds or balance due notices issued, and prevent erroneous Computer Paragraph (CP) notices from being generated to the taxpayer CARE is a Computer Assisted Review. All statistical data regarding TPNCs and tax examiner accuracy is gathered by computer programs and downloaded to a database for analysis. CC 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 Documents are reviewed and reworked using instructions for specific error conditions. IMF: IRM 3.12.2, Individual Master File Error Resolution General Instructions, IRM 3.12.3, Error Resolution, Individual Income Tax Returns, IRM 3.22.3, International Error Resolution, Individual Income Tax Returns, and IRM 3.12.37, IMF General Instructions BMF - Refer to applicable ERS IRM 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. 3.12.2.2.10.1 (01-01-2017) CARE Reports The High Dollar Notice Listing reports (LC76440-BMF and LC76441-IMF), are found on Control-D and contain the data used to generate 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: Julian Date Notice Report Dollar Reports Employee Report Cart Report Custom Select Report The LC76301 report can be found on Control-D and contains data showing the before CARE and after CARE status of each return. This report is input into the CARE Access Database to generate accuracy reports for each return. The following accuracy reports can be generated: Section Accuracy Rates Individual Tax Examiner Report Summary Team Report Summary TPNC Review Report Summary TPNC Review accuracy by Team Notice Code Review Totals Notice Code Review by Team Notice Code Review by Program Quality Review Report The Utility Window is used to specify review begin and end dates. This will allow weekly, monthly, or yearly accuracy reports to be generated. Local management officials determine which local reports to generate and distribute. HQ CARE Analyst can request HQ reports to generate and distribute. 3.12.2.2.10.2 (11-27-2020) Generating CARE Review/Pull Listing Each morning, a designated employee loads the applicable Control- D reports (LC76440-BMF and LC76441-IMF) into the CARE Access database. The daily review/pull listings are then generated and printed. Using these listings, the returns are then located and made available to the CARE reviewers. Note: If your site is working MeF via CMODE to assist another center, the helping sites, the CARE Analyst will work with campus P&A to fax TPNCs 100 to the primary site for CARE review. 3.12.2.2.10.3 (01-01-2018) CARE Review Procedures In order to prepare the return for review, all previously assigned TPNCs must be removed. Take the following steps in the order shown: Enter the complete DLN (including the serial number of the return) from the review sheet using Command Code GTRECQ, transmit. Enter GTSEC 01, transmit. Enter G in Field 01CCC. Delete G from Field 01CCC when EC 048 displays. The steps above only remove the TPNCs assigned on the record. It won’t take you back to the first error displayed on the return if verified fields or processing codes were entered. GTSEC 94 and check for entries in ERS verified fields, such as Field 94EXV, 94CEV. Get each applicable section and check for entries in ERS only input fields, such as Field 0717V or Field 17SEV. GTSEC 01 and check for processing codes, such as RPC O or CCC X. If found, delete the entries. The return is now be ready to be reworked. Refer to the following IRMs for ERS correction procedures: IMF IRM Title 3.12.3 Error Resolution, Individual Income Tax Returns 3.12.37 IMF General Instructions 3.22.3 International Error Resolution, Individual Income Tax Returns 3.12.2.2.11 (01-01-2017) Computer Assisted Pipeline Review (CAPR) For 2002 and later, ERS tax examiners are not required to enter a CAPR Code. 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). 3.12.2.2.12 (01-01-2025) Correspondence Procedures Do not correspond on returns TY13 and prior. Use No Reply procedures for missing information on TY13 and prior returns. Exception: Correspond for missing signature regardless of tax year. Determine if a valid signature is present. See IRM 3.12.2.2.5.2.4 for complete signature instructions. Caution: Do not process a return without a valid taxpayer signature unless specific instructions exist; both taxpayers must sign if FSC 2. Correspond if a return is incomplete or illegible and cannot be processed. Correspond for all missing information prior to referring the return to other IRS entities (e.g., Exam, Entity, etc.) or converting to Form 1040. Stop processing the return when you identify a correspondence issue and: Scan the tax return for additional correspondence issues: missing forms, unexplained tax liability, missing original signature, missing information about dependents or EIC children such as name, relationship, or TIN. Do not correspond for only the TINs of dependents or EIC children. Note: Tolerances and thresholds apply to some forms and affect correspondence. See the following exceptions when corresponding for: • Missing original signatures. See IRM 3.12.2.2.5.2.4. • Form 1116. Refer to EC 277. • Form 8283. Refer to EC 240. • Schedule 8812. Refer to EC 344. • Schedule EIC. Refer to EC 337. • Withholding is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ not supported by IRPTR research and no supporting documents (e.g., Form W-2 or Form 1099) correspond for support. Caution: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Check the return for Form 2848, Power of Attorney and Declaration of Representative, or similar statement to ensure the correspondence is correctly addressed. When a return is for a minor taxpayer and the parent's name is known, ensure the parent's name is in Field 01NL2. Look for the parent's name on Form 8615 or the signature line of the return. When you correspond for Schedule C or F ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and no Schedule SE is present, also request that the taxpayer declare liability or non-liability for the self-employment tax. Caution: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ A correspondence action sheet (CAS) is a form used to initiate a letter requesting information from a taxpayer. The following CAS forms are used: Form 6001 is used to generate Letter 12-C, Individual Return Incomplete for Processing: Form 1040. Form 3696-A is used to generate miscellaneous Correspondex (C) letters (e.g., Letter 2719-C used for non-pending returns). Refer to Form 3696-A for Second Correspondence and Non-Pending Letters. Prepare Form 6001 to initiate Letter 12-C using the following steps: If taxpayer is single and there is an indication the taxpayer is deceased, check the box “Estate of” at the top of the form. Write legibly. Check all appropriate boxes. Complete all information required for each paragraph selected (e.g., forms, lines, amounts, etc.). Enter money amounts in dollars and cents. Bracket negative amounts. Use Exhibit 3.12.2-9, Letter 12C Fill-in Paragraphs, when paragraph e is selected. Note: Refer all other fill-in paragraphs to your manager for their text approval and initials next to paragraph e. When paragraphs I - N are not enough to request all missing forms and schedules, use paragraph e with fill-in paragraph "36" instead. Paper returns: Always select the applicable fax number paragraph (h - j) specific to your campus. Note: No entry is required in the fill-in fields of the fax number paragraph (h - m). MeF returns: Select the applicable fax number paragraph (k - m) specific to your campus. All returns: Select paragraph o to include the secure messaging website as an option for taxpayers. For paper returns, attach the CAS to Form 1040 below the caption area. Caution: When stapling the correspondence action sheet to the return, ensure you are attaching only one return. For MeF, correspondence will be input by tax examiners before suspending the document in IDRS. Input the letter using the IAT CAS Letter Tool. Before inputting letters, ensure the IAT Letter Tool Set-up is complete following the instructions in IRM 3.12.37.6.2. Refer to the Letters Job Aid on the IAT website for additional information on using the IAT Letters Tool. Enter CC SSPND with the applicable action code below: 211 - first correspondence. Use 211 unless specified below. 212 - second correspondence, when directed. See IRM 3.12.2.2.12.1. 213 - Form 8885 (HCTC) (EC 358) 224 - ACA correspondence (EC 100, 101, 190, 191, 192, 193, 194, 195, 196, 197, 198, 199, 270, and 352). If there are multiple reasons for corresponding and one is for ACA, use 224. 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. Substitute for Return Prepared by IRS under the authority of Section 6020(b). An assessment made from Form 2859, Request for Quick or Prompt Assessment. An Examination Adjustment case identified as "Secured by Examination" . Form 3198 is attached. 3.12.2.2.12.1 (01-01-2025) Second Correspondence When contact with the taxpayer has previously been made by any area of Submission Processing, including Form 3531, Request for Signature or Missing Information to Complete Return, treat missing information on a return as a No Reply, except in the situations in the following list. Correspond a second time when any of the following exceptions apply, if it had not been requested during first correspondence, and the taxpayer provided a complete reply: Error Code 268, Alternative Minimum Tax Liability Error Code 358, Health Coverage Tax Credit (HCTC) Form 4137 when you can’t determine which taxpayer is liable. Form 5329 when you can’t determine which taxpayer is liable. Form 8606 when you can’t determine which taxpayer is liable. Form 8919 when you can’t determine which taxpayer is liable. Schedule H when you can’t determine which taxpayer is liable. Schedule SE when you can’t determine which taxpayer is liable. If EC 028 or EC 029 displays after Code & Edit has corresponded or ERS has corresponded for "field errors only" . When second correspondence is issued based on the exceptions in (1) a) through i), enter SSPND 212 and prepare the applicable Form 3696-A for LTR 1263C. Note: Refer to the Form 3696-A for Second Correspondence and Non-Pending Letters located under Job Aids in the SERP ERS/Rejects portal. If ACA Error Code 100, 101, 190, 191, 192, 193, 194, 195, 196, 197, 198, 199, 270, or 352 displays after first correspondence and the taxpayer has provided a complete reply, issue second correspondence. SSPND 212 and follow the procedures under the error code for the appropriate paragraph(s) to send using Form 6001. Also, include paragraph e with fill-in 23. Exception: If correspondence has been issued for ACA EC 190 through 199, EC 270, or EC 352, and another ACA error code displays for the return requesting more information, do not correspond. Follow No Reply procedures. 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 IRM 3.12.3.35. 3.12.2.2.13 (01-01-2017) Types of Errors 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 3.12.2.2.13.1 (01-01-2017) Priority I Errors, Action Code Priority I Errors consist of the following: Invalid or valid Action Code assigned by Code and Edit. Valid Action Code assigned to Suspense Inventory. Use the following error correction for Action Codes: If the... Then... A] Action Code requires a Suspense Action, SSPND with correct Action Code. Go to the bottom of the screen and transmit. B] Action Code does not require a Suspense Action, Enter numeric 000 in the Clear Field (CL). Go to the bottom of the screen and transmit. C] Action Code is 001, Enter CC GTSEC for each section that contains data. Add the required data. Enter C in the Clear Field. 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. 3.12.2.2.13.2 (01-01-2017) Priority II Errors, Section Errors Priority II Errors may be present if normal ISRP validity checks have been bypassed. These conditions are as follows: 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. Invalid section ending point (Edit Error Code 3). Invalid field length (Edit Error Code 4). Questionable Section (a section entered twice or entered out of sequence by ISRP) (Edit Error Code 5). Missing required section. Terminus errors (no error in record). 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. 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. Use the following general guidelines when correcting a Priority II Error: 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. 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 3.12.2.2.6) or correspondence (see IRM 3.12.2.2.12). After initiating research or correspondence, SSPND the record with the appropriate action code. 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. 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. Correct all displayed fields before transmitting. Go to the bottom of the screen and transmit when no corrections are necessary. 3.12.2.2.13.3 (01-01-2017) Priority III Errors, Validity Errors, including Field Errors Priority III Errors generate when any field fails to meet the requirement(s) for that specific field. The following is a list of some conditions that may create a field error: Non-numeric character in a numeric field. Non-alphabetic character in an alpha field. Blank space in a number field. Blank in the first position of an alpha field. 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. Use the following general guidelines when correcting Priority III Errors: Correct coding and transcription errors. Enter the correct data for each field displayed. If no data is to be in a displayed field, blank the field. Follow section instructions for fields in error. Note: When "Unrecognizable Field Error" displays, SSPND 630. 3.12.2.2.13.4 (01-01-2017) Priority IV Errors, Math and Consistency Errors (Error Codes) 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 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 The display will show the error code assigned and the fields needed to make the necessary correction(s). 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. 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. 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. Use the following general guidelines when correcting a Priority IV Error: Compare the displayed fields with the return. Correct all fields edited or transcribed incorrectly. Enter correct taxpayer amounts for ERS input only fields (e.g., Other Statutory Credits). Follow the instructions for the displayed error code when correcting fields in error. 3.12.2.2.13.5 (04-05-2024) Error Codes in Series 500 and 600, Changes in Statutory Credits 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 the 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 their 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 2719-C. See the following example: Before Correction After ERS Correction Line 16 Tax Amount is $1,000. Investment Credit is $1,500. Credit is limited to $1,000. Credit taxpayer will carry forward is $500. Line 16 Tax Amount is $1,400. Investment Credit is $1,500. Credit is limited to $1,400. Credit taxpayer will carry forward is $100. Prepare Form 3696-A to initiate the Letter 2719C when the change to credits is $100 or more. Refer to Form 3696-A for Second Correspondence and Non-Pending Letters. Complete the following: Boxes 1 through 9 (as appropriate), on Form 3696-A. "Fill-ins" portion of Form 3696-A. "Fill-ins" 01 through 05 of Letter 2719C (these are required). Note: If preparing Form 3696-A for Form 3800 (TY97 and later), and line 2 (Passive Activity Credits Included) or line 3 (Passive Activity Credits Allowed) of Form 3800 is present; do not reference on Form 3696-Aindividual general business credit. Instead, reference all Form 3800 credits as "your general business credit" . 3.12.2.3 (01-01-2018) Special Procedures This subsection addresses the following special situations, return types and procedures: Secured/Photocopied/Second Returns Automated Substitute for Return (ASFR) Frivolous Filer Accounts Over 999 Million Dollars Injured Spouse Allocation Innocent Spouse Relief Request, Form 8857 International Returns KITA: Killed in Terrorist Action Military Spouse Residency Relief Combat Zone Returns Natural Disaster and Emergency Relief Program Conversion of Returns Misblocked Returns Prior-Year Returns Re-Entry (Reinput) Returns Taxpayer Advocate Service 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 Manual Refund - Refer any return hand carried by a TS SP liaison for Taxpayer Advocate Service (TAS) as a manual refund to a lead tax examiner or designated tax examiner for processing. (See IRM 3.12.3.24.4.3, EC 260.) 3.12.2.3.1 (11-27-2020) Secured/Photocopied/Second Returns Taxpayers sometimes file returns with Form 1040 to correct or change previous returns. Some taxpayers send copies of original returns with payments or correspondence. Process the return as an original if the phrase "No TC 150" , "Secured by Collection," or "TC-599" -XX is anywhere on the return. 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. 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. 3.12.2.3.2 (01-01-2017) Automated Substitute for Return (ASFR) Most Substitute For Returns (SFRs) have been automated and are called ASFRs. 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: Research using CC INOLE. Re-enter the entity data into the field(s) in error. 3.12.2.3.3 (01-01-2024) Frivolous Filer SSPND 331 (Rejects AC 335) any return on which the taxpayer: Argues - for any reason - the filing of a tax return or the paying of tax. Makes use of a frivolous argument to reduce income or liability. Marks out or alters - in any manner - the penalty of perjury statement (jurat) above the signature. A Frivolous Return Process stamp in the upper left hand corner of the return indicates it has already been reviewed by the Exam FRP Coordinator. Do not SSPND 331, continue processing. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See Exhibit 3.12.2-14, Frivolous Filer Definitions, for more examples and complete descriptions. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Example: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If you suspect a return is frivolous, 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. If the return is electronic, print Section 01 of the return. Suspend the return to: •≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ • SSPND 331 for frivolous arguments listed in IRM 3.12.2.3.3, Frivolous Filer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 3.12.2.3.4 (05-24-2022) Accounts Over 999 Million Dollars ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If a return meets any of the conditions in (1), void the return with SSPND 620 (For MeF, print all forms, schedules, attachments, and Code and Edit Values), and route it via overnight shipping to the following address: Kansas City Submission Processing Campus Accounting Control/Services Operation NMF Stop 6263 P6 333 W. Pershing Rd. Kansas City, MO 64108 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Consistency errors in the range 5XX and 6XX may display because of the truncated AGI. Keep the effect of the truncated AGI in mind when you follow the procedures at those error codes. 3.12.2.3.5 (01-01-2023) Injured Spouse Allocation An Injured Spouse allocation request can be filed by one spouse to protect their share of a joint overpayment. Injured Spouse returns can be identified by one of the following: "Injured Spouse" written on the return. Form 8379, Injured Spouse Claim Allocation, attached. Batched in Blocking Series 920-929 (Form 1040 or Form 1040-X). Use the following table to determine procedures for handling Injured Spouse claims: If the return... Then... A] Has Blocking Series 920-929, Continue processing. Leave Form 8379 or Form 1040-X attached. B] Does not have Blocking Series 920-929 (found in regular block of work), SSPND 610 to have renumbered. 3.12.2.3.6 (04-05-2024) Innocent Spouse Relief Request, Form 8857 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. 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. 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 they filed the joint return at the time the claim was filed. 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. Taxpayers are instructed to file Form 8857, Request for Innocent Spouse Relief, to request relief if they are making the preceding claims. 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. Innocent Spouse Relief requests are processed in Cincinnati only. When the taxpayer attaches correspondence to the return that identifies them as a claimant or when Form 8857 is attached to the return: Detach the correspondence and Form 8857 and all supporting documentation. Edit working trails on the return and the correspondence and Form 8857. Prepare Form 4227, noting "Innocent Spouse Request," and attach it to the detached items. Give Form 8857 and all documents related to it to your manager. Leave the return in the block and process as normal. Send all claims daily, via traceable mail, to the following address: Internal Revenue Service Cincinnati Centralized Innocent Spouse Operation Stop 840F 7940 Kentucky Drive Florence, KY 41042 3.12.2.3.7 (01-01-2025) International Returns 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. 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 W-2 from American Samoa (Form W-2 AS) Form W-2 from Commonwealth of Northern Mariana Islands (Form W-2 CM) Form W-2 from Guam (Form W-2 GU) Form W-2 from Puerto Rico (Form 499R-2/W-2PR) Form W-2 from United States Virgin Islands (Form W-2 VI ) Form 1040 GUAM, Guam Individual Income Tax Return Form 1040-NR, U.S. Nonresident Alien Income Tax Return Form 1040NR-EZ, U.S. income Tax Return for Certain nonresident Aliens With No Dependents Form 1040-PR (TY22 and prior), 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 (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico) Form 1040-SS (SP)) (TY23 and later), Declaración de Impuestos Federal sobre el Trabajo por Cuenta Propia (Incluyendo el Crédito Tributario Adicional por Hijos para Residentes Bona Fide de Puerto Rico) Form 1042-S or letter signed by Competent Authority, Form SSA 1042-S, or Form RRB 1042-S Form 2555, Foreign Earned Income Form 2555-EZ (2018 and prior), 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 on Certain Dispositions by Foreign Persons Form 8689, Allocation of Individual Income Tax to the U.S. Virgin Islands Form 8804, Annual Return for Partnership Withholding Tax (Section 1446) Form 8805, Foreign Partner’s Information Statement of Section 1446 Withholding Tax Form 8813, Partnership Withholding Tax Payment Voucher (Section 1446) Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) 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, Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures Form 14654, Certification by U.S. Person Residing in the United States for Streamlined Domestic Offshore Procedures Dual Status -- Form 1040 and Form 1040-NR filed together for the same tax year, "Dual Status" or "D/S" indicated on the return (taxpayer claims part year residence and part year non-residence). Always leave Form 1040 and Form 1040-NR for the same taxpayer together. Nonresident Alien (NRA) -- Primary or both taxpayers are nonresident Alien Exception: The primary taxpayer is a nonresident alien (NRA) without a social security number (SSN); however, secondary taxpayer has an SSN/ITIN and is reporting 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, process as a domestic return. Treaty Trader Fulbright Grantee Notation of "Streamlined" on the return, or other indication of Streamlined Filing Compliance Procedures on the return. Other Streamlined certification similar to Form 14653 or Form 14654 IRC 871, IRC 893, IRC 911, IRC 913, IRC 931, IRC 932, IRC 933, IRC 934 or IRC 935 of the Internal Revenue Code (IRC) is notated anywhere on the return. Exception: For electronically filed returns, if the amount of the exclusion is $0 and there are no other indications of international criteria, DO NOT send to Austin for processing as an international return. Caution: If none of the International conditions listed above are present, consider it a domestic return and process it accordingly. Except in AUSPC, use SSPND 651 to forward any international returns described in paragraph 1 or 2 to AUSPC for immediate processing. In AUSPC, use SSPND 610 to have such returns renumbered. Caution: Unless the return meets other international criteria, do not transship returns when the taxpayer has converted income paid in a foreign currency. The taxpayer may, for instance, earn income in Canadian dollars, convert it to U.S. dollars, and then report it on the return in U.S. dollars. Note: Foreign income (usually reported on line 1, Form 1040 or line 8z, Schedule 1 of Form 1040), FEC noted on line 1, Form 1040, or the presence of Form 1116 alone does not qualify for treatment as an international return. 3.12.2.3.8 (01-01-2019) KITA: Killed in Terrorist Action 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. If the taxpayer writes Sec 692(d)(2) on the Other Payments line of Form 1040 with a money amount to the right, Code and Edit is instructed to route to the KITA/KIA coordinators. If the KITA/KIA coordinator determines that the return does not qualify for KITA/KIA, the coordinator will attach a Form 4227 notating Not eligible for KITA/KIA to the front of the tax return. The Form 1040 will be returned to Code and Edit to complete processing. If the KITA/KIA coordinator determines that the return is not eligible under Sec 692(d)(2), Code and Edit will X any amount on the return where the taxpayer has written Section 692(d)(2). If the KITA/KIA coordinator determines that the return is not eligible under Sec 692(d)(2), enter the computer's amount for tax in Field 94TTV and assign TPNC 650. Note: Delete any amount claimed on the return for tax forgiveness under Section 692(d)2. If Code and Edit failed to identify a return as KITA/KIA, take the following action: Prepare Form 4227 stating KITA/KIA. SSPND 360 (other in-house research) and route the return to the KITA Coordinator. If the KITA Coordinator determines the taxpayer qualifies for KITA, the Coordinator will ship the return to the Kansas City KITA Coordinator. The KITA Coordinator will notify ERS Suspense when the return is routed to the Kansas City KITA Coordinator for processing. ERS Suspense tax examiner must RJECT 640 to remove the document from ERS inventory. 3.12.2.3.9 (01-01-2018) Military Spouse Residency Relief 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. To elect the extension, the taxpayers filing a joint return write the phrase MSRRA on the top of their tax return. Taxpayers who file under the filing status married filing separately must attach the declaration below in addition to writing the phrase MSRRA on their return: I am claiming _________________ as my residence or domicile under the Military Spouses Residency Relief Act (MSRRA). Under penalties of perjury, I declare that I am qualified for relief under MSRRA because I am present in ______________ solely to accompany my spouse who is a service member serving in compliance with military orders, and my claimed residence or domicile is the same as my spouse’s residence or domicile. The declaration must be signed and dated by the taxpayer. Neither a stamped signature nor a faxed signature is permitted. Enter M and P in Field 01CCC when the taxpayers request an extension under MSRRA and satisfy the requirements. 3.12.2.3.10 (01-01-2023) Combat Zone Returns 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. 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 8z of Schedule 1 of Form 1040 or restore in full the wages on line 1 of Form 1040. Assign TPNC 165. For additional information, 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. Take the following appropriate action when one of the military operations listed is noted on the return: If the taxpayer notes... And... Then... A] Operation Enduring Freedom Operation Noble Eagle Operation Iraqi Freedom Egypt Sinai Peninsula-Egypt Jordan Operation New Dawn Combat Zone or similar statement 09/19/2001 and later 03/19/03 to 04/20/03 (Egypt) 03/19/03 and later (Jordan) Enter K in Field 01CCC. B] Bosnia Croatia Former Yugoslavia Herzegovina Joint Guard Macedonia Operations Allied Force Operation Joint Endeavor TY97 and later, Enter R in Field 01RPC. C] Former Yugoslavia TY94 and TY93, Enter D in Field 01CCC. D] Desert Storm (Persian Gulf area) Joint Forge Joint Guard Northern Forge Northern Watch TY90, Enter Z in Field 01CCC. E] Haiti Operational Uphold Democracy Operation GTMO TY94 and TY93, Enter D in Field 01CCC. F] UN Operation TY92 and later, Enter D in Field 01CCC. G] Somalia or Somalia Restore Hope TY93 and TY92, Enter D in Field 01CCC. H] Haiti or Operation Unified Response TY10 and TY09 Enter D in Field 01CCC. 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. For further information about military returns, see EC 260. 3.12.2.3.11 (01-01-2017) Natural Disaster and Emergency Relief Program The Natural Disaster / Emergency Relief Program provides relief from late filing and/or late payment penalties for taxpayers in declared disaster or emergency areas. The program coordinator will notify the campuses when an area has been designated for natural disaster or emergency relief. Disaster and emergency notifications will include the dates of the extensions of time to file returns and pay taxes. Taxpayers will be required to call to self-identify themselves as disaster filers. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 3.12.2.3.12 (04-05-2024) Conversion of Returns When working a converted return (e.g., TY17 or prior Form 1040A or Form 1040EZ converted to Form 1040) 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. When Form 1040 is filed for a deceased taxpayer and the return covers a tax period after the taxpayer died, refer to IRM 3.12.37.30.2, Transshipping Form 1040 for 1041 conversion. 3.12.2.3.13 (04-05-2024) Misblocked Returns Form 1040 identified as Injured Spouse returns must be batched together in blocking series 920-929. See IRM 3.12.2.3.5 to process such returns. If information is missing, SSPND 211 to correspond before converting the return. Note: For further information on renumbering documents, refer to IRM 3.12.37, IMF General Instructions. Take the following actions for misblocked returns. If... Then... A] A prior year return is found in a current year block, Process the return using the prior year returns instructions at IRM 3.12.2.3.14, Prior-Year Returns. B] Form not in the 1040 series is found in a Form 1040 block, Refer the return to your lead. 3.12.2.3.14 (01-01-2025) Prior-Year Returns 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 TY21 and prior may require a manual computation. Follow the applicable prior-year procedures. In processing year 2025, Code and Edit will edit TY24 line numbers on TY23 and prior forms and schedules when there is an entry to be transcribed. 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. Use the following general guidelines when processing prior-year returns: Correct coding errors, transcription errors and misplaced entries in displayed fields. Always ensure the tax period is entered correctly. Use the prior-year tax form to verify an amount manually and give the taxpayer the most beneficial allowable tax computation. Refer to Prior-Year Job Aid Book 2515-014. 3.12.2.3.15 (02-26-2024) Re-Entry (Reinput) Returns Tax returns that are being put through the system again may have a Form 3893 attached indicating what, if any, actions were taken. These returns may have a notation below the jurat "Do not correspond for signature" or similar statement and/or TRDBV prints attached. The following are some of the reasons that documents will be re-entered or reinput: Withholding has been adjusted because of a prior refund. The period ending is being changed. An amended return is being changed to an original return. Filing Status is being changed. CP 29 or CP 36 is attached. Substitute for Return (SFR) or has previously corresponded with the taxpayer. SSN / TIN change TRPRT print of return - MeF return being reinput MFT 32 return being reinput to MFT 30 The following are general guidelines for working Re-entry returns. Do not change corrections shown in brown or red ink on the form/return. Do not correspond. Perfect the return using the originally filed return on EUP for MeF, or TRDBV if the originally filed return was paper. If Form 3893 identifies the originator on an unprocessable return, SSPND 640 and return document to the originator. Follow normal processing procedures when the originator states "process as an original return" . Do not correspond for signatures on TRPRT print of return (MeF). 3.12.2.3.16 (01-01-2023) Taxpayer Advocate Service The Taxpayer Advocate Service (TAS) is an independent organization within the IRS, led by the National Taxpayer Advocate, that helps taxpayers and protects taxpayer rights. TAS offers free help to taxpayers when a tax problem is causing a financial difficulty, when they’ve tried and been unable to resolve their issue with the IRS, or when they believe an IRS system, process, or procedure just isn’t working as it should. TAS strives to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico. The National Taxpayer Advocate has reached agreements with the Commissioner of Taxpayer Services (TS), 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. Refer to IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for a complete list of TAS Case Criteria. 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 13.1.7.5, Same Day Resolution by Operations. 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, 877-777-4778 or TTY/TDD 800-829-4059. 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 does 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. 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 3.12.2-12, Attachment Guide, for procedures for routing Form 911 to the TAS Office. Do not refer the following types of cases to TAS as they are exceptions to TAS criteria: 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. 3.12.2.3.17 (01-01-2025) Electronic Returns Command code (CC) CMODE allows an IDRS user access to different IDRS databases. To change modes, enter CMODE and a two-digit abbreviation for another campus. Below are the two-digit codes for each site: Site Two-Digit Code Andover AN Austin AU Fresno FR Kansas City KC Ogden OG Philadelphia PH Refer to Job Aid Book 2515-015 for procedures for the MeF (Modernized e-File) Reference Guide. If you have to suspend an electronic return for routing out of ERS, create a paper trail by following these steps. GTSEC 01 of the return in question and print. Write or type 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 Section 01 print. Example: AC 300, EC 358, Form 965 processing Complete Form 4227, Intra-SC Reject or Routing Slip, if necessary, and attach it to the print of Section 01. Place the print in the area designated for routing electronic return suspense. If the IRM instructs you to assign a TPNC 100, create a paper trail by following these steps. GTSEC 01 of the return in question and print. Complete a TPNC 100 slip or equivalent form when instructed to send more than five TPNC’s. Attach the completed form to the print of Section 01. Place the print of Section 01 in the area designated for electronic returns TPNCs 100. If your site is helping the primary site work MeF ERS 100 work, the helping site is required to issue the correspondence and use the primary site’s signature code. All Unpostable, Entity, Accounting Function, Review or Reject function issues are the responsibility of the primary site. If a center takes on some inventory from another center, the helping center’s CARE analyst works with their campus P&A to establish communications, and arrange how and when the helping center is to transfer returns with TPNC 100 to the primary center. The transfer of returns with TPNC 100 must take place daily. Scanned Paper Returns can be identified in the Employee User Portal (EUP) by the following: A green C will be present next to the DLN. The notation Converted from Paper will be present. The attached PDF scan of the original return, IRS Form 1040 Document, will be present. Note: Transcription errors will be present on Scanned Paper Returns. Some fields may contain invalid or incorrect data if the field is blank or illegible during the scanning process. Verify and perfect the fields in IDRS using the attached Form 1040 Scanned Document. Note: Only use the IRS Received Date to determine the Received Date. The Electronic Postmark Date is the date the return was scanned and not the date received. 3.12.2.3.18 (04-25-2022) Deceased Taxpayer If the return is filed by a spouse, personal representative (executor, administrator, fiduciary designee or trustee) or an individual other than the deceased taxpayer, you may have to request documentation to verify the legal right of the filer to submit the return on behalf of the deceased taxpayer. If the surviving spouse filed the return and the filing status code (FSC) is 2, no documentation is needed. Enter the surviving spouse’s name in Field 01NL2. ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: To be considered complete, Form 1310 must meet the following requirements: • Signature must be present. • If box A is checked, the return must be FSC 2. • If box B is checked, a copy of the court appointment must be attached. If not attached, correspond for a court certificate. • If box C is checked, Question 2a and 2b in Part II must be answered with "no." If question 2a or 2b is answered with "yes" or left unanswered, correspond for a court certificate. • If box C is checked, Question 3 in Part II must be answered with "yes" unless a court certificate is provided. If Question 3 is answered with "no" or left blank and no court certificate is present, correspond for a court certificate that entitles the person to the refund. Enter or correct Field 01NL1 per IRM 3.12.2.4.3.5 and enter or correct Field 01NL2 if adequate documentation (Form 1310 and/or court certificate) is provided. See IRM 3.12.3.7.3.3 (1) through (8) for assignment of computer condition codes. 3.12.2.3.19 (01-01-2023) Multiple Filers on the Same Return If filers report wages or other income or withholding that doesn't belong to the primary or secondary taxpayer, allow only the income and withholding for the primary or secondary taxpayer. Adjust the return and assign TPNC 112. Note: See IRM 3.12.2.3.21 before adjusting return. If the income and withholding you excluded belongs to a dependent claimed on the return, take the following actions: Detach income and withholding statements from the return. Edit in the left margin "Detached income/withholding document" as appropriate. Take detached documents to lead tax examiner. The lead 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 more assistance or have any questions, you may call 800-829-0922." If the income and withholding statements do not belong to the Primary or Secondary taxpayers or the dependents: Note: See IRM 3.12.2.3.21 before taking the following actions. Detach income and withholding statements from the return. Edit in the left margin "Detached income/withholding document" as appropriate. Take detached documents to lead tax examiner. The lead 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 more assistance or have any questions, you may call 800-829-0922." If a return is received without any income documentation (e.g., Form W-2, Form 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. 3.12.2.3.20 (01-02-2024) Multiple Tax Periods on the Same Return 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., Forms W-2 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. Assign TPNC 759. If the taxpayers' return includes page 1 and page 2 from two different tax periods take the following actions: 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" If the tax period for page 2 has not posted and page 1 or page 2 has an original signature, verify all required schedules or forms with an amount present on page 2 are attached and take the following actions: Form 1040: For TY17 and prior, enter line 38 amount in Fields 04OTI, 03TOT, and 03AGI. For all tax years, enter amounts in the appropriate fields to reflect attached forms/schedules (for example Schedule C, Field 0403) if the tax period matches the tax period shown on page 2. Enter N in Field 01RPC (if EC 088 displays, enter C in the Clear Field). Assign all appropriate notice codes. If research indicates that neither tax period’s return (page 1 or page 2) has posted, correspond with the taxpayer using fill-in "2" . For all other income and withholding statements that do not belong to that tax period, take the following actions: Detach income and withholding statements from the return. Edit in the left margin "Detached income/withholding document" as appropriate. Take detached documents to lead tax examiner. The lead 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 more assistance, you may call 800-829-0922." 3.12.2.3.21 (01-01-2024) Tax Return for an ITIN, Income and Withholding Statements for SSN 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. Allow the income and withholding and process the return according to procedures. 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. 3.12.2.4 (01-01-2017) Section 01, Entity And Miscellaneous Information Section 01 includes the following information. 3.12.2.4.1 (01-01-2024) Error Record Format, Section 01 Section 01 contains the following fields: Form 1040 Field Name Form 1040 Field Location 01PNC Primary Name Control Entity Area 01PS Primary SSN Entity Area 01SNC Secondary Name Control Entity Area 01SS Secondary SSN Entity Area 01NL1 Name Line 1 Entity Area 01NL2 Name Line 2 Entity Area 01ADD Street Address Entity Area 01C/S City/State Entity Area 01ZIP ZIP Code Entity Area 01TXP Tax Period Page 1 of tax return 01SPC Special Processing Code Page 1 of tax return 01FSC Filing Status Code Page 1 of tax return 01CCC Computer Condition Code Page 1 of tax return 01EXC Exemption Code Field Page 1 of tax return 01DSI Dependency Status Indicator Page 1 of tax return 01ABI Age/Blind Indicator Entity Area (Page 2, TY17 and prior, Form 1040) 01DN1 Dependent 1 Name Control Page 1 of tax return 01DS1 Dependent 1 SSN Page 1 of tax return 01CT1 Dependent 1 Child Tax and Other Dependent Credit Code Page 1 of tax return 01DN2 Dependent 2 Name Control Page 1 of tax return 01DS2 Dependent 2 SSN Page 1 of tax return 01CT2 Dependent 2 Child Tax and Other Dependent Credit Code Page 1 of tax return 01DN3 Dependent 3 Name Control Page 1 of tax return 01DS3 Dependent 3 SSN Page 1 of tax return 01CT3 Dependent 3 Child Tax and Other Dependent Credit Code Page 1 of tax return 01DN4 Dependent 4 Name Control Page 1 of tax return 01DS4 Dependent 4 SSN Page 1 of tax return 01CT4 Dependent 4 Child Tax and Other Dependent Credit Code Page 1 of tax return 01RCD Received Date Page 1 of tax return 01FPC Forms Processing Code Page 1, right of line 7 01RPC Returns Processing Code Field Page 1 of tax return - Bottom left margin 01ACD Audit Code Page 1 of tax return - Bottom right margin 01PEF PECF-CD Page 1, right of entity 01DAC Digital Assets Code Page 1, below entity 3.12.2.4.2 (06-23-2021) Entity Information 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. The following table contains Entity types: Entity Type Field Used Description A] Short - 01PNC 01PS 01SS Return that agrees with EIF for name, address or Primary SSN. B] Partial - 01PS 01SS 01NL1 01NL2 Return with changes in First or Second Name Line. C] Intermediate - 01PNC 01PS 01SS 01ADD 01C/S 01ZIP Return with changes in any part of the street, address, City/State or first five digits of the ZIP Code. EIF indicates a Change of Address. D] Long - 01PNC 01PS 01SS 01NL1 01NL2 01ADD 01C/S 01ZIP Return with a change in the Primary SSN. Return with a change in both the Name and Address. Return that does not agree with EIF for Primary SSN, name or address. Return when ISRP cannot use EIF. Entity Control Function has changed the Primary SSN or has assigned a temporary number. Note: Processing will enter the Secondary SSN, if present, at the NAP file when FSC is 2 and the Secondary SSN field is blank (i.e., short or intermediate entity). Prisoner Returns: If Code and Edit has underlined part of the entity information at the top of the return, that is an indication it is to be transcribed. If not present, search the return packet for indications that the taxpayer is incarcerated; if found, enter the Prisoner ID on NL2 to correct the error. Common indications of incarceration include (but are not limited to): A Prisoner ID number following the taxpayer’s name A return address in a correctional facility A stamp on the envelope indicating prisoner correspondence A taxpayer statement 3.12.2.4.3 (01-01-2017) Correction Procedures Correction procedures for Section 01 fields follow. 3.12.2.4.3.1 (01-01-2017) Field 01PNC, Check Digits/Name Control Correction procedures for Check Digits and Name Control follow. 3.12.2.4.3.1.1 (01-03-2017) Check Digits 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. This field will be invalid if any of the following exist: First two positions are not blank. Third and fourth positions are not alpha characters. Additional validity checks by the computer. Correction Procedures: 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. If an ITIN is written in red on the return, use the name control entered in red ink. Caution: NEVER ENTER OR CORRECT CHECK DIGITS. 3.12.2.4.3.1.2 (02-08-2021) Name Control 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. This field will be invalid if any of the following exist: First position is not an alpha. The second, third, or fourth positions are not alphas or blank. Blanks are between characters. Correction Procedures: 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. If an ITIN is written in red on the return, use the name control entered in red ink. 3.12.2.4.3.2 (01-01-2023) Field 01PS, Primary Social Security Number Every primary taxpayer must have a taxpayer identification number (TIN). That TIN may take several forms: a social security number (SSN), individual taxpayer identification number (ITIN), or IRS number (IRSN). In this IRM, SSN is often used in a collective sense and may refer indiscriminately to any one of the three kinds of TIN. The IRSN may be referred to as a temporary TIN. The IRS issues the ITIN and IRSN. The Social Security Administration issues the SSN. The SSN and ITIN may be valid or invalid. The IRSN is always invalid. Each of these TINs is nine digits long and has the same format: XXX-XX-XXXX. The ITIN and IRSN always begin with the number 9. The SSN does not begin with the number 9. The fourth and fifth digit of the ITIN and IRSN are restricted to certain values. The valid ranges for the fourth and fifth digit of the ITIN are 50 through 65, 70 through 88, 90 through 92, and 94 through 99. The ranges are listed below. 9XX-50-XXXX through 9XX-65-XXXX 9XX-70-XXXX through 9XX-88-XXXX 9XX-90-XXXX through 9XX-92-XXXX 9XX-94-XXXX through 9XX-99-XXXX The values for the fourth and fifth digit of the IRSN are listed below. The fourth and fifth digit of the IRSN identify the center that issued the IRSN. The Fresno Service Center would have issued an IRSN in the format 9XX-89-XXXX and Kansas City one in the format 9XX-09-XXXX, for instance. 08 and 38: Andover 07 and 37: Atlanta 18 and 06: Austin 19 and 01: Brookhaven 17 and 02: Cincinnati 89 and 10: Fresno 09 and 39: Kansas City 49 and 03: Memphis 29 and 04: Ogden 28 and 05: Philadelphia 66: Austin ONLY, IRSN for International returns Note: There is a fourth kind of TIN, the Adoption Taxpayer Identification number (ATIN). It is possible that a primary taxpayer would have an ATIN, but it's unlikely, and therefore isn't described above. Like the other TINs, it's nine digits long and divided into three groups of digits: XXX-XX-XXXX. Like the ITIN, it always begins with a 9, but unlike the ITIN, its fourth digit is always 9 and its fifth digit always 3: 9XX-93-XXXX. This entry in the field is invalid in any of these conditions: The entry has fewer than nine numeric characters. The digits are all zeros or all nines. The field is blank. Correction procedures. Search the return, attachments, and Form(s) W-2 for a P-SSN when the P-SSN is invalid as outlined in IRM 3.12.2.4.3.2 (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 3.12.2-12 for routing. Note: When returns come back from Entity with an IRSN, enter O in Field 01RPC and 0 (zero) in the first position of Field 94EXV if applicable. If the taxpayer indicates that they are Amish or Mennonite, don't enter O in Field 01RPC or 0 (zero) in the first position of Field 94EXV. Do enter B in Field 01RPC though. SSPND 351 when IDRS is unavailable. FOR AUSPC ONLY- If the return has an ITIN, written in red ink and W-7 is stamped in the bottom left hand corner of the return, follow the instruction in the following table: Note: An ITIN begins with "9" and the fourth and fifth numbers range from 50-65, 70-88, 90-92, and 94-99; (9XX-50-XXXX through 9XX-65-XXXX), (9XX-70-XXXX through 9XX-88-XXXX), (9XX-90-XXXX through 9XX-92-XXXX), or (9XX-94-XXXX through 9XX-99-XXXX). When a TIN begins with "9" and the fourth and fifth digits are "66" (9XX-66-XXXX), it is used for International IRSN only. If... Then... A] The ITIN Operation stamped or wrote rejected for the primary taxpayer, SSPND 320 to Entity Control for a temporary number. (If a red temporary number is already written (9XX-18-XXXX) on the return with a number that has 18 in the fourth and fifth position of the TIN Field, process using the IRSN. See Note Below) B] No primary ITIN is written, but RTS research shows Form W-7 in status S or U (Suspended or Unworked), Print the RTS screen and attach the print to the front of the return. SSPND 640 to ITIN. Indicate the status on Form 4227. C] Original W-7 attached to return, SSPND 640 to ITIN. Write W-7 attached on Form 4227. Note: When returns come back from Entity with temporary numbers, enter O in Field 01RPC and 0 (zero) in the first position of Field 94EXV if applicable. 3.12.2.4.3.3 (06-28-2017) Field 01SNC, Secondary Name Control The Secondary Name Control is a four-position field consisting of the first four letters of the secondary taxpayer's last name. If the last name contains fewer than four characters, the name control will be shorter than four characters. This field will be invalid if any of the following exist: First position is not an alpha. The second, third, and fourth positions are not alphas, hyphens, or blank. Blanks occur between characters. 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. If the FSC is 3, the secondary name control must not be present. Delete the secondary name control from Field 01SNC. Refer to Document 7071, Name Control Job Aid, or Job Aid Book 2515-015. 3.12.2.4.3.4 (04-25-2022) Field 01SS, Secondary Social Security Number 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. The S-SSN is required when any of the following exist: Primary taxpayer is deceased and it is a joint return. Self-Employment (SE) Tax is being paid for the secondary taxpayer on Schedule SE. Schedule H is filed for the secondary taxpayer. Form 4137 tax is being paid for the secondary taxpayer. Form 5329, is filed for the secondary taxpayer. Form 8606 is filed for the secondary taxpayer. Form 8919 tax is being paid for the secondary taxpayer (TY07 and later). Form 8941 is being filed and unable to determine who is filing the form (TY14 and later). Note: See action to take in (4)C] when S-SSN is required and not found. This field will be invalid if fewer than 9 numeric characters are present. 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 3.12.2-12. 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 IRM 3.12.2.4.3.4 (1). When IDRS is not available, SSPND 351. 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. 3.12.2.4.3.5 (11-27-2020) Field 01NL1, First Name Line 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. This field will be invalid if any of the following exist: Characters are not alpha, ampersand, hyphen, less-than sign (<), or blank. The less-than sign is not present. More than two less-than signs are present. The first character is a less-than sign, blank, or ampersand. The last character is a less-than sign. The character immediately following the first less-than sign is not an alpha. A blank immediately precedes a less-than sign. Two or more consecutive embedded blanks are present. An ampersand occurs between two less-than signs. Two or more ampersands are present. An ampersand is present in the First Name Line and the Document Code is 72, or 73. 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. Delete all titles such as Mr., Dr., Reverend, etc. Exception: Do not delete Mrs. when a woman is using her spouse’s name such as "Mrs. John Brown" . Use the following chart as a guide to correct various error conditions in the First Name Line: Error Condition Correction A] Joint Return, different last names. Less than sign before and after Primary Taxpayer's last name. Example: 01NL1 JOHN A<WHITE<& JANE B GREEN B] Joint return, one person deceased, same names. Enter DECD after the first name and/or initial of the deceased taxpayer. Example: 01NL1 JOHN A & JANE B DECD<WHITE C] Joint return, one person deceased, different name. Enter DECD after the last name of the deceased taxpayer. Example: 01NL1 JOHN A<WHITE<& JANE B GREEN DECD Example: 01NL1 JOHN A<WHITE<DECD & JANE B GREEN D] Joint return, both taxpayers deceased, same name. Enter DECD after the first name and/or initial of each taxpayer. Example: 01NL1 JOHN A DECD & JANE B DECD<WHITE E] Joint return, both taxpayers deceased, different names. Enter DECD after each last name. Example: 01NL1 JOHN A<WHITE<DECD & JANE B GREEN DECD F] Joint return and JR or SR to be carried after deceased. Enter JR or SR before DECD or at the end of the name line. Example: 01NL1 JOHN A JR DECD & JANE M<WHITE Example: 01NL1 JOHN A DECD & JANE<WHITE<SR H] Other than joint return and deceased. Enter DECD after the last name of the deceased taxpayer. Example: 01NL1 JOHN A<WHITE<DECD I] No first name or taxpayer with only one name. Enter a hyphen preceding the less-than (<) sign. Example: 01NL1 -<WHITE J] When in-care-of (%). Transcribe in Second Name Line using c/o. Example: 01NL2 C/O DON B BLUE K] For Minor/Child Name Line. Enter Minor after last name. L] For deceased Minor/Child Name Line. Enter DECD after last name. Note: Research IDRS when the First Name Line is not present or incomplete. Enter as Short Entity if not found. See IMF Job Aid 2515-015 for more information. 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. Shorten the secondary taxpayer's middle name to the initial. Shorten the primary taxpayer's middle name to the initial. Delete the secondary taxpayer's second initial. Delete the primary taxpayer's second initial. Shorten the secondary taxpayer's first name to the initial. 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. 3.12.2.4.3.6 (04-22-2024) Field 01NL2, Second Name Line 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. Names preceded by the in-care-of sign, %, are transcribed in the Second Name Line Field. When the entity is Long or Partial and a Second Name Line is present, the First Name Line must be present. When Field 01CCC contains an L or W, the Second Name Line must be present if the entity is partial or long. Note: Second Name Line is not required if a balance due or zero balance return. Search return for Second Name Line or Form 1310. If found, enter the second name line in Field 01NL2. If unable to find a name ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, SSPND 211. Prepare Form 6001 using paragraph D. If unable to find a name ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, SSPND 211. Prepare Form 6001 using paragraph e with fill-in #3. If not a refund return, delete the pound sign (#). This field will be invalid if any of the following exist: Characters are not alpha, numeric, ampersand, hyphen, percent, slash, or blanks. A pound sign fills the final position-because the name is longer than 35 characters (paper return only). 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). 3.12.2.4.3.7 (01-01-2017) Field 01ADD, Street Address Street address contains 35 characters. If more than 35 characters (including spaces), the last position will display with a # sign (paper return only). This field will be invalid if any of the following exist: Characters are not alpha, numeric, hyphen, slash, or blanks. Pound (#) sign in last position (over 35 characters, paper return only). When Field 01ADD is present, the first position must be alpha or numeric, and there cannot be consecutive embedded blanks/spaces. 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, Enter the abbreviation "APT" before the alpha or numeric. Enter both street address and apartment number. F] Includes both a street address and a P O Box number, Enter the street address in Field 01NL2. Enter the P O Box in Field 01ADD. G] More than 35 characters and all of the address is necessary, Correct as long entity. Start address in Field 01NL2. 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. 3.12.2.4.3.8 (04-29-2019) Field 01C/S, City and State City/State Field is 25 characters. Data may be the City-State or a Major City Code (MCC). APO/DPO/FPO will be used as the city name for military addresses and is only be used with state codes AA, AE, or AP in the following format: Field 01C/S Field 01ZIP APO/AE 090XX-099XX APO/AP 962XX-966XX APO/AA 340XX Note: DPO or FPO can be substituted for APO in the preceding chart. They use the same state and ZIP code ranges. APO/DPO/FPO filers are instructed to file at AUSPC; however, if received at a different center, process as normal. If the ZIP code is missing, enter the first three digits that apply to the state code and enter "01" as the last two digits. This field will be invalid when any of the following apply: Any character is other than alpha or blank (the slash is used only to separate the city and state for the computer). The slash is not preceded by at least three valid characters. The slash is followed by something other than two alpha characters. City/State or major city code is present and the first position is blank. 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 Compare the screen display with the entry on the return. Correct the field display when a field was transcribed incorrectly. GTSEC 01 and correct all fields in the section when there is a slipped field (when transcription inputs an entry on the wrong line resulting in all subsequent entries for the section being input on wrong lines). See IRM 3.12.2.3.7 on International returns. Use the following table to correct a field error: If the City/State... Then... A] Exceeds 25 characters, Consult the lead tax examiner or manager. B] Is missing and is required, Enter data for short entity only. C] Has more than one address and one is a permanent address, Use the permanent address. D] Is a temporary foreign Address, Consult your manager or lead tax examiner to determine if a manual refund is required per IRM 3.12.37. E] Contains numeric characters, Convert to alpha characters (e.g., 1000 Oaks to Thousand Oaks). F] Contains ampersand (&), Convert to AND. 3.12.2.4.3.9 (01-01-2024) Field 01ZIP, ZIP Code The field for the ZIP Code is a numeric five-character field. An entry in the field is invalid in any of the circumstances below. It's not numeric; not 0 (zero) through 9. It's fewer than five digits long. It's blank. Its fourth and fifth character are 00. 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, Determine the three-digit code for the address and enter it in Field 01ZIP. Refer to Exhibit 3.12.2-11 for the three-digit code. 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. AE: 09001 AP: 96201 AA: 34001 D] not found, the address is not a APO or FPO, Determine the three-digit code for the address and enter it in Field 01ZIP. Refer to Exhibit 3.12.2-11 for the three-digit code. 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. 3.12.2.4.3.10 (01-01-2025) Field 01TXP, Tax Period 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. Process Form 1040 as current year when the tax period is not less than 202412 or more than the current year and month. Process Form 1040 as prior year when the tax period is 196212 - 202411. Field 01TXP will also be invalid when any of the following exist: Return is for a non-ADP tax period, before 196212. Return shows a future tax period later than the current year and month. Verify the tax period on the return or attachments and correct any coding or transcription errors. Use the following table to correct field errors: The tax period is... The form is... Then... A] 202412 (current), 1040 blank Field 01TXP; the programming generates 202412. B] before 196212 1040 SSPND 620. Attach Form 4227 and note Non-ADP tax year. C] future period: later than current year and month 1040 refer to lead tax examiner. See the exception below. Exception: Refer to EC 260 when the return is an early filed decedent return. (Also refer to EC 002, EC 042 and EC 046.) 3.12.2.4.3.11 (01-01-2025) Field 01SPC, Special Processing Code 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 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. This field will be invalid if Form 1040 (Doc Code 05, 06, 11, 12, 21 or 22) is other than 0, 1, 2, 3, 4, 5, 7, 9, A, B, C, D, E, F, G, H, J, K, L, M, N, P, Q, R, S, T, V, Y or Z Note: SPC "M" is for RICS use only. Do not remove. Correction Procedures - Refer to the Special Processing Code Exhibit 3.12.2-4 to determine the correct codes. 3.12.2.4.3.12 (01-01-2023) Field 01FSC, Filing Status Code The filing status code (FSC) for Form 1040 is determined by the filing status checked by the taxpayer (FSC 1 through 5; or FSC 6 or 7 coded by Code and Edit). The meaning of the FSCs are as follows: Code 1: Single taxpayer Code 2: Married taxpayer filing a joint return Code 3: Married taxpayer filing a separate return and spouse is also filing a separate return Code 4: Head of Household, for a dependent/exemption claimed in position 3, 5, 6, or 7 of Field 01EXC Code 5: Widow(er) with or without dependent child, see EC 034. Code 6: Married taxpayer filing a separate return but claims a spouse as a dependent/exemption who has no income and who is not filing a return Code 7: Head of Household, for taxpayers who don't claim a dependent/exemption but write a child's name on Form 1040, or show a qualifying child on Form 2441, Form 8814, or Schedule EIC. Note: For TY18, taxpayers write a qualifying child’s name in the space provided in filing status area after Qualifying Surviving Spouse. For TY17 and prior, taxpayers write a qualifying child's name on line 4 of Form 1040. Note: Taxpayers who write a name in the space provided in filing status area don't have to provide a TIN for the qualifying child. The qualifying child on Form 2441, Form 8814 or Schedule EIC must have a valid TIN for the taxpayer to qualify for this variant of the filing status Head of Household or Widower. The entry in this field is invalid if it's not 1 through 7 for Form 1040. 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). Note: Before determining the FSC, verify that taxpayer meets the qualifying criteria in the filing status chart. Refer to the Filing Status Chart located in the ERS Job Aid Book 2515-015. Research IDRS using CC INOLE/RTVUE to determine filing status in prior year(s), if necessary. When the correct FSC cannot be determined, SSPND 211 for Form 5129. 3.12.2.4.3.13 (01-01-2023) Field 01CCC, Computer Condition Codes (CCC) Computer Condition Codes (CCC) are alpha and/or numeric character(s) edited by Code and Edit to alert the computer and Master File to a special condition. Some CCCs are also generated by the computer. A CCC will post to the Master File. The number of CCCs may not exceed ten. On TY18 and later, Form 1040, CCC is edited in the spouse standard deduction area next to "spouse itemizes" checkbox. This field will be invalid for Form 1040 (Doc Code 05, 06, 11, 12, 21 or 22) - if other than 1, 2, 3, 4, 5, 6, 7, 8, 9, A, B, C, D, E, F, G, H, J, K, L, M, N, O, P, Q, R, U, V, W, X, Y, or Z Determine and enter the correct code when necessary. Refer to Computer Condition Code Exhibit 3.12.2-2. Note: When CCC 3 is required, it must be in the first position. SSPND 610 for renumbering when a Form 1040-X 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. 3.12.2.4.3.14 (04-05-2024) Field 01EXC, Exemption Codes, 8 positions TY18 and later, the exemption amount that can be claimed is $0. Exemption coding in Field 01EXC is retained for determining family size in certain calculations. Exemption Code(s) support the exemption(s) claimed by the taxpayer. Refer to the exemption code chart located in the ERS Job Aid 2515-015. Exemption descriptions are as follows: Placement of the code within the field identifies the exemption(s). The exemption code is computer generated for positions 1 (primary taxpayer) and 2 (secondary taxpayer). Code and Edit determines exemption positions 3 through 8. Exemption positions 3 through 8 (TY17 and prior, positions 5 through 8) are edited in the margin to the right of the dependents section. Note: Make corrections to Field 01EXC for editing and transcription errors only. For MeF returns, do not make changes to Field 01EXC based on the description of exemption positions. The following are the descriptions of Exemption Positions used by Code and Edit: Position 3: Child, son, daughter, grandchild, grandson, granddaughter, adopted child, adopted son, adopted daughter, stepchild, stepson, stepdaughter. Position 4: Child who did not live with the taxpayer because of divorce or separation (TY17 and prior. Position 5: Parent, father, mother, grandparent, grandfather, grandmother, stepparent, parent-in-law, mother-in-law, father-in-law. Position 6: Qualifying child (e.g., foster child, sibling, brother, sister, sibling’s child, niece, nephew, step-sibling, half-sibling, half-brother, half-sister, ward). Position 7: Other relationships not included in Position 3, 5, or 6, such as parent’s sibling, uncle, aunt, cousin, son-in-law, daughter-in-law, friend, boyfriend, girlfriend, NRA spouse and FSC 4 with other exemptions, dependents who did not live in the U.S. except for parent relationships ("NRA" /"SSA 205c" , "Canada" , "Mexico" , "CN" , or "MX" ), or no relationship indicated. Position 8: Excess dependents (overflow). This field will be invalid when any of the following exist: The field is all blank. The field contains other than numerics. Position one is other than 1. The correction input does not have every position entered. Position two is other than 0 (zero) or 1. Take the following actions to correct the field error: Correct transcription and/or coding errors. Determine the correct exemption coding from the information on the return. Enter an entry in each position of the field. Only allow the exemptions that are supported by name (if used in the tax computation) when the taxpayer fails to total the exemptions. 3.12.2.4.3.15 (01-01-2024) Field 01DSI, Dependency Status Indicator, 1 position Dependency Status Indicator (DSI) is used when the primary taxpayer (or secondary taxpayer, if FS2) can be claimed as a dependent on someone else's return. For TY18 and later, ISRP will transcribe the dependent status indicator from page 1 of Form 1040 checkboxes, "someone can claim you as a dependent" and/or "someone can claim your spouse as a dependent" . For TY17 and prior, Code and Edit will code a 1 directly above line 6c, column (4) on Form 1040 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. Refer to EC 250. When 1 is present in Field 01DSI, all of the following will apply: Standard Deduction Computer will be limited. For TY24, the limitation is the larger of $1,300, or earned income plus $450. For TY17 and prior, the computer will not allow any primary, secondary, or dependent exemptions. Note: On any return when DSI 1 is valid and Field 94EXV is being used, enter 0 (zero) in positions 1 and 3 through 8 of Field 94EXV. This field will be invalid if other than blank or 1. 3.12.2.4.3.16 (11-27-2020) Field 01ABI, Age/Blind Indicators Age/Blind Indicators (ABI) Field is checked with the primary or secondary qualifies for additional standard deduction amount when 65 or older, or blind. TY19 and later, transcribed from page 1, Form 1040, above the Dependents line. TY18, transcribed from page 1, Form 1040, below the primary and secondary taxpayer’s name lines. TY17, transcribed from the four boxes on line 39a, Form 1040. Refer to EC 252. This field will display with four generated zeros (0000) on the screen display and will be input as follows: Code Position Condition 1 1 (1000) Primary taxpayer 65 or over 1 2 (0100) Primary taxpayer blind 1 3 (0010) Secondary taxpayer 65 or over 1 4 (0001) Secondary taxpayer blind When the taxpayer did not check any ABI box, but is claiming an amount equal to a "combined amount" of standard deduction and additional standard deduction amount, check for the following conditions: An entry for Schedule R. The taxpayer indicates 65 or older near the ABI boxes. Certification of blindness is attached. For TY17 and prior, an entry is present in the Total box on Form line 39a. Refer to EC 250. 3.12.2.4.3.17 (01-01-2019) Field 01DN1, 01DN2, 01DN3, 01DN4, Dependent Name Control Dependent Name Control is a four-position field that consists of the first four letters of the dependent's last name and is located in the dependents area (TY17 and prior, exemption area) of the return. Code and Edit will edit the name control from Schedule EIC, attachments, or the primary taxpayer's name control. They will also X dependents without SSNs. Note: Field 01DN1/2/3/4 is entered on 199612 and later returns. This field will be invalid when either of the following exist: The first position is not an alpha. The second, third, or fourth positions are not alpha, hyphen, or blank. Compare the field with the return and correct accordingly. Blank the field when the dependent's SSN is not present. 3.12.2.4.3.18 (04-25-2022) Field 01DS1, 01DS2, 01DS3, 01DS4, Dependent SSN Dependent SSN Field is located in the dependents area (TY17 and prior, exemption area) of the return. Code and Edit will edit the missing SSN from the return and attachments when not present, if possible. Note: Field 01DS1/2/3/4 is entered on 199612 and later returns. This field will be invalid when fewer than nine numeric characters are present. 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 IRM 3.12.2.4.3.18 (4) and IRM 3.12.2.4.3.18 (5) 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. Search the return and attachments for an official document such as a birth certificate when there is any indication that the dependent Died, or was born and died in the tax year. Note: There must be an indication that the child was born alive; an exemption cannot be claimed for a stillborn child. If there is an indication of Died on the return: If... Then... A] The information clearly shows that the child was born within the tax period of the tax return and died in the same or consecutive tax period. Note: The word "Died" in column 2 of the dependent section of the tax return satisfies this requirement. Enter I in Field 01RPC. 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, Treat as missing. 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. 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" 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: 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). 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. If Field STAT-CD> is "S" or "R" , SSPND 640 to Rejects and note on Form 4227 ATINQ STAT CD "S" or "R" . If Field STAT-CD> is "E" , "U" , or "H" , disallow the exemption for the dependent using Field 01EXC. If there is no response to CC ATINQ, when EC 010 displays, disallow exemption. 3.12.2.4.3.19 (01-01-2020) Field 01CT1, 01CT2, 01CT3, 01CT4, Dependent Child Tax and Other Dependent Credit Code, 1 position The Dependent Child Tax and Other Dependent Credit Code is used for TY98 and later. The taxpayer checks the applicable box in the dependents area to indicate a dependent is eligible for Child Tax Credit or Credit for Other Dependents. An entry for the first four dependents will be transcribed as follows in Field 01CT1/2/3/4. 0 (zero) - default value 1 - taxpayer checks Child Tax Credit 1 - taxpayer checks both boxes 2 - taxpayer checks Credit for Other Dependents (TY18 and later) These fields will be invalid if they contain values other than 0 (zero), 1 or 2. Verify that Fields 01CT1/2/3/4 are transcribed correctly. 3.12.2.4.3.20 (01-01-2025) Field 01RCD, Received Date The received date is the date that a return was received by the IRS. For TY18 and later, received date is edited by hand in dependent’s name area on Form 1040. For TY17 and prior, the received date is edited by hand to the right of line 6d Form 1040, or The received date is stamped near the center of Form 1040 by a center, area office, territory office. The city and functional area within the site (e.g., CSCO, Exam, ICT, CII, AM), must be in the date stamp too, or The received date is stamped in the lower left corner of the return by Lockbox. 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. Do not use a received date that has been circled. Another function has determined that the date is not valid. Follow the instructions in IRM 3.12.2.4.3.20 (9), for determining the received date if the other function has not provided a corrected received date. The entry in Field 01RCD is invalid when it is: not numeric or blank or not in the format YYYYMMDD or earlier than 19630101 or later than the current processing date Field 01RCD will also be invalid if the date is not within the following valid month and day ranges: Month Day 01 (January) 01-31 02 (February) 01-28 (29 in leap year) 03 (March) 01-31 04 (April) 01-30 05 (May) 01-31 06 (June) 01-30 07 (July) 01-31 08 (August) 01-31 09 (September) 01-30 10 (October) 01-31 11 (November) 01-30 12 (December) 01-31 The received date cannot be any of the following: later than the date of the error record shown in the title line. earlier than the ending month and year of the tax period in Field 01TXP. Field 01RCD must hold a valid received date in YYYYMMDD format. Correct data in Field 01RCD using the procedures below when the transcribed date is invalid. Consider the return filed on time and enter the return due date in Field 01RCD when all of the following conditions exist: The return was originally received on time. Code and Edit or ITIN corresponded with the taxpayer. No received date is stamped or edited on the return. The current date is later than the return due date. Received Date not present: Determine the received date by the following priorities when a valid date is not stamped on the return or a valid handwritten received date is not present: Note: See IRM 3.12.2.4.3.20 (11) for exceptions. 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. Service Center Automated Mail Processing System (SCAMPS) digital dates. 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. Julian date in the DLN minus 10 days Note: Do not accept the date generated by the sending fax machine on an original return. 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: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Use the following table for processing exceptions to correcting the received date: If the return... Then... A] Is a current year return which was filed on time, Correct the data in Field 01RCD per priority in (9) above. 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] Is being filed after a timely filed MeF return was rejected (as noted by the taxpayer) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Enter 20250415 in Field 01RCD. If a return was mailed to a state taxing agency: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the received date in Field 01RCD. 3.12.2.4.3.20.1 (01-01-2017) Post Office Marks 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). 3.12.2.4.3.20.2 (01-01-2018) Private Delivery Service (PDS) Marks Designated Private Delivery Services (PDS) are in the following list: 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 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. 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 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. 3.12.2.4.3.20.3 (01-01-2017) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ By law, a timely-mailed return is a timely-filed return. This applies to both USPS and designated PDS mail. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 3.12.2.4.3.21 (01-01-2024) Field 01RPC Return Processing Code 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. RPCs are edited as follows: For TY18 and later, Form 1040: near the bottom-left margin of page 1 of the return For TY17 and prior, Form 1040: near the right of line 22. This field will be invalid for Form 1040 (Doc Code 05, 06, 11, 12, 21, or 22) when 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, Y, Z, 1, 2, 3, 4, 5, 6, 7, 8, or 9. Take the following actions to correct Field 01RPC: Correct coding and transcription errors. Determine and enter the correct RPC (if necessary). See Exhibit 3.12.2-3 for a list of explanations. 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. 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. 3.12.2.4.3.22 (11-27-2020) Field 01ACD Audit Codes Audit codes are used to alert Examination to certain conditions in the return. Audit codes are edited by Code and Edit in the bottom-right margin of page 1 of the return. The valid values for the field are Form 1040 (Doc Code 05, 06, 11, 12, 21, 22): A, B, C, D, H, I, J, K, L, P, Q, R, S, T, U, V, W, X, Z, 2 and 3. Any other values are invalid. Compare the entry in the field with the code in the lower right margin of page 1 of the return. Correct coding and transcription errors. If the audit code is illegible or incorrect, refer to Exhibit 3.12.2-6, Audit Codes, to determine the correct audit code. If you cannot determine the correct audit code, delete the code from Field 01ACD. 3.12.2.4.3.23 (01-01-2019) Field 01PEF, Presidential Election Campaign Fund Code Presidential Election Campaign is found in the upper right corner of Form 1040 to the right of the address and apartment line (TY17 and prior, to the right of City, State and ZIP Code line). Field 01PEF is a numeric one character in length field. An entry in Field 01PEF is invalid if other than blank, 1, or 2. Compare the field on the screen to the entry and correct screen display. Blank if no box marked. Enter "1" if one box is marked. Enter "2" if two boxes are marked. Note: For TY21 and prior, remove the entry in Field 01PEF. 3.12.2.4.3.24 (01-02-2024) Field 01DAC, Digital Assets Code Digital Assets Code is found in the middle of the Form 1040 under the entity section. Field 01DAC is a numeric one character in length field. An entry in Field 01DAC is invalid if other than 1, 2, 3, 0. Compare the field on the screen to the entry and correct screen display. 0 is default if no boxes are marked. 1 if the Yes box is checked. 2 if the No box is checked. 3 if both boxes are checked. 3.12.2.4.3.25 (01-01-2024) Field 01FPC, Forms Processing Code A Forms Processing Code (FPC) is an alpha and/or numeric character(s) edited by Code and Edit to alert the computer and Master File to a special condition. The number of FPC’s may not exceed ten. A FPC will be edited on Form 1040 to the right of line 7. This field will be invalid if Form 1040 (Doc Code 05, 06, 11, 12, 21, or 22) is other than A, B, D, G, H, J, L, P, Q, R, W, X, 0, 5, 8, or 9. Correction Procedures - Refer to the Forms Processing Code Exhibit 3.12.2-5 to determine the correct codes. 3.12.2.5 (01-01-2020) Section 02, Form 3471 (Edit Sheet) Section 02 contains edited information from Form 3471, Edit Sheet, for certain Unallowable (UA) conditions, and several ERS input only fields. 3.12.2.5.1 (11-27-2020) Error Record Format Section 02 Section 02 holds the following fields: Form 1040 Field Name Field Location (Form 3471) 02RI Revalidation Indicator ERS input only 02DTR Dependent TIN Requirement ERS input only 02CD1 Unallowable Code 1 Line 1 02AM1 Unallowable Amount 1 Line 1 02CD2 Unallowable Code 2 Line 2 02AM2 Unallowable Amount 2 Line 2 02CD3 Unallowable Code 3 Line 3 02AM3 Unallowable Amount 3 Line 3 02AGI Unallowable AGI Near bottom of form, box labeled "AGI" 02ITM Unallowable Itemized Near bottom of form, box labeled "Itemized" 02NI Unallowable Net Income Near bottom of form, box labeled "Net Income" 02TXA Unallowable Tax Adjustment Near bottom of form, box labeled "TAX" 02RPD Return Processed Date Line 4 0206 Late Filing Code Line 6 02PDP Pre-Determined Delinquency Penalty Line 7 0208 Form 4563 Indicator (International) Line 8 (for AUSPC only) 0211 ID Number Penalty Line 11 02W2A ITIN Return First W-2 SSN ERS input only 02W2B ITIN Return Second W-2 SSN ERS input only 02ARC ACA Resolution Code ERS input only All fields are positive. Money amounts are entered in dollars only. 3.12.2.5.2 (01-01-2017) Field 02RI, Revalidation Indicator This field is for ERS input only and is used to retrieve information from the NAP file for NAP validation in ERS. The field is one space long. Valid values: blank: the default value R: signifying the request for NAP validation 3.12.2.5.3 (01-01-2017) Field 02DTR, Dependent TIN Requirement 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. The field is one space long, and only numeric values are valid. 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 3.12.2.5.4 (11-27-2020) Unallowables There are certain conditions in a tax return that are unallowable by law and not merely questionable. These are identified by Unallowable (UA) Codes and edited by Code & Edit, as instructed in IRM 3.11.3, by Examination on Form 3471, Edit Sheet, or by ERS tax examiners, as instructed in IRM 3.12.3. An unallowable code allows the return to be processed as it was submitted. The fields for the amount of the unallowable display in dollars only. Note: Enter unallowable code and amount for items ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ These unallowable fields are edited by Code & Edit on Form 3471 for transcription: Field 02CD1/02AM1 Field 02CD2/02AM2 Field 02CD3/02AM3 These unallowable UA fields are for ERS input only: Field 02AGI Field 02ITM Field 02NI Field 02TXA Field 94UTV Refer to the Unallowable Codes, Exhibit 3.12.2-7, for a list and explanation of the unallowable codes. Corrections are not necessary unless the record contains EC 380, 702, 704, 706, 708, 712, 714, 716 or 718. Enter and correct unallowable codes according to the instructions below. Enter all codes as they are shown on Form 3471 or the return. 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. 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, GTSEC 02. Enter the UA codes. See Exhibit 3.12.2-7. Enter the UA amount. B] Less than the tolerance, In a field that is creating an ERS error condition, Move the amount to a catch-all field: for example, move Field 0716 of Schedule A. See the note below. Note: Do not adjust the return. Do not leave a working trail for the amount moved. Refer to EC 260 for CCC Y conditions. 3.12.2.5.5 (05-13-2024) Field 02RPD, Return Processed Date The Return Processed Date (RPD) is located on line 4 Form 3471 or stamped on the correspondence reply. The return processed date is sometimes called the correspondence received date. Correct coding and transcriptions errors. Correct invalid format to the date YYYYMMDD. Y=year, M=month, and D=day. The entry in Field 02RPD is invalid if any of the following conditions are present: The day of the month (DD) exceeds the number of days for the transcribed calendar month (MM). The first position of the field is blank and the rest of the field is filled. The entry has fewer than eight characters. The entry is not exclusively numeric. The entry is later than the current date. When a return has been held in suspense and a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, enter the return processed date in Field 02RPD using the following priority: IRS fax received date. Correspondence received date. Postmark date on reply envelope. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Don’t enter a return processed date when: a complete reply is received before the due date of the return, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or the correspondence was issued in error. 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. 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 If EC 058 redisplays, delete the entry in Field 02RPD. 3.12.2.5.6 (01-01-2025) Field 0206, Late-Filing Code ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 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. The field will be invalid when other than blank or 1. 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: Pre-computed delinquency, Failure to Pay Penalty, Interest is entered on the return, Enter 1 in Field 0206. Enter 20250415 in Field 01RCD if a timely received date is not stamped or edited. B] Partial Paid, An amount is indicated for delinquency (Failure to File) penalty, Enter 1 in Field 0206. 3.12.2.5.7 (01-01-2017) Field 02PDP, Pre-Determined Delinquency Penalty 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. This field will be invalid if other than blank or all numerics. Correct any coding or transcription errors. 3.12.2.5.8 (01-01-2017) Field 0208, Form 4563 Indicator (International) This field is used by AUSPC only. Delete entry if present in this field. 3.12.2.5.9 (01-01-2018) Field 0211, Identification Number Penalty Identification Number Penalty Field has a maximum of 2 characters and will be invalid if other than two zeroes (00) or 50. Code and Edit will edit 50 when there is a notation on the return that this penalty is to be assessed and an amount is present. Enter the amount in Field 0211 as two digits (e.g., $50.00 will be entered as 50). Note: Examination or Collection will indicate when this penalty is to be assessed. Correct any editing or transcription errors. 3.12.2.5.10 (01-01-2018) Fields 02W2A and 02W2B, ITIN Return First/Second W-2 SSN These fields will be invalid if other than blank or numeric. These fields are ERS input only. If Field 02W2A or 02W2B is equal to the Primary or Secondary SSN, delete the entry. 3.12.2.5.11 (01-01-2025) Field 02ARC, Affordable Care Act (ACA) Resolution Codes The ACA Resolution Code is an alphanumeric field and can have up to 10 codes. Enter a code in Field 02ARC only 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 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 3.12.2.5.12 (01-01-2024) Field 02NC> Non-Compute Code 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: TY24, TY23, TY22, TY21, and TY20 - Form 1040 Data through line 15, plus any applicable lines from Schedule 2 and 3. TY19 Form 1040 - Data through line 11b, plus any applicable lines from Schedule 2 and 3. TY18 Form 1040 - Data through line 10, plus any applicable lines from Schedule 3, 4 and 5 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, 56, 75, and 79 may be present. Field 02NC> will display with a 2 (identifying the return as a Non-Compute), for TY18 and later, when all of the following exist: Adjusted Gross Income is present and Total Tax IMF, Balance Due/Refund, Estimated Tax Payments, Estimated Tax Penalty and Remittance Amount are not present. Computer Condition Code B is not present. Taxpayer does not exceed tax table limitations for income. Only Sections 01-05, 08, 16, 19, 21, 22, 23, 27, 29, 30, 36, 37, 43, 44, 45, 50, 51, 56, 75 and 79 are present. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Error Codes in the 500 and 600 series will also be generated on all Non-Compute returns. 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. 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. 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. If the taxpayer has computed the tax to zero, has entered withholding and has no subsequent entries (e.g., taxpayer is not asking IRS to figure EIC) and does not have an entry on line 33, Form 1040 (TY19 line 19, TY18 line 18, TY17 line 74), enter the withholding amount in Field 03BDR and don’t enter CCC B. 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. 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. Verify the coding and transcription on all the fields in the following table. Take the appropriate action listed in the table below, when necessary, before transmitting the record: Verify Field... And... Then... 01FSC The taxpayer failed to check or checked multiple boxes for the FS, SSPND 211 01EXC You are unable to arrive at the taxpayer's total for exemptions, SSPND 211 01ABI You are unable to arrive at the taxpayer's total for Age/Blind deduction(s), Refer to EC 250. 01DSI You are unable to determine if the taxpayer is limiting the Standard Deduction or Exemption amount, Refer to EC 250 Section 03 Verification of wages, from Forms W-2, shows the amount of wages is greater than the amount reported on the return by $10 or more, Increase the wages amount. (Continue processing if amount is less than what is reported on the return.) Section 03 The taxpayer used Social Security or Medicare wages instead of wages in box 1 of Form W-2, Change the amount to reflect the box 1 wages. Section 03 EIC is claimed based solely on wages that are not supported by a Form W-2 (or similar Form W-2 document), or HSH is not noted on the wage line, Research CC IRPTR, if available. SSPND 211 for documentation if income is not found on IRPTR. Section 03 Gross social security is being claimed, Research CC IRPTR, if available. Verify and correct the amount, if applicable. Field 03WH (Form 1040) Withholding is claimed, Supported by only a substitute, typed or handwritten Form W-2 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. 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: The separate taxable incomes of the taxpayers are shown above the words "Adjusted Gross Income" , on Form 1040. There are no exemptions in positions 3 through 8, or the taxpayer has indicated the allocation of the exemptions to the spouse. 3.12.2.6 (11-27-2020) Section 03, Simplified Tax Return Section 03 includes information transcribed from the Form 1040 3.12.2.6.1 (01-01-2025) Error Record Format Section 03 Form 1040 Section 03 consists of the following fields: Form 1040 Field Name Form 1040 Field Location 03WG W-2 Wages Line 1a 03NCP Nontaxable Combat Pay Amount Line 1i 03TWG Total Wages Line 1z 03TEI Tax-Exempt Interest Line 2a 03INT Taxable Interest Line 2b 03QD Qualified Dividends Line 3a 03DIV Ordinary Dividends Line 3b 03GIR Gross IRA Distributions Line 4a 03TIR Taxable IRA Distributions Line 4b 03GPA Gross Pension and Annuity Line 5a 03TPA Taxable Pension and Annuity Line 5b 03GSS Gross Social Security Line 6a 03TSS Taxable Social Security Line 6b 03CGL Schedule D Profit/Loss Line 7 03ADD Additional Income Line 8 03TOT Total Income Line 9 03TAJ Total Adjustments Line 10 03AGI Adjusted Gross Income Line 11 03QBI Qualified Business Income Deduction Line 13 03INC Taxable Income Line 15 03TTX Tentative Tax Line 16 03AF Additional Forms 8814 attached ERS input only 03AT Additional Forms 8814 Tax ERS input only 03COD Child Tax or Other Dependent Credit Line 19 03NRC Total Statutory Credit Line 21 03OTX Other Taxes Line 23 03TAX Total Tax Line 24 03WH Withholding Line 25d 03ESP Estimated Tax Credit Line 26 03EIC Earned Income Credit Line 27 03ACT Additional Child Tax Credit Line 28 03AOC Refundable Education Credit Line 29 03PSC Form 1040C Credit ERS Input Only 03RCR Refundable Credits Line 32 03PAY Total Payments Line 33 03BDR Balance Due Refund Line 35a or 37 03CEL Credit Elect Line 36 03ETP Estimated Tax Penalty Line 38 03AI Third Party Designee Authorization Indicator Below line 38 03TPN Third Party Designee Name Below line 38 03TPI Third Party Designee ID Number Below line 38 03EMW E-File Mandate Waiver Code Edited to right of spouse IP PIN 03PC Preparer Code Edited to right of self-employed checkbox 03PT Preparer TIN PTIN in Paid Preparer area, page 2 03PE Preparer EIN Firm’s EIN in Paid Preparer area, page 2 03PTN Preparer Telephone Number Preparer Telephone Number in Paid Preparer area, page 2 3.12.2.6.2 (01-01-2020) Invalid Conditions Fields in Section 03 are invalid if not all numeric. 3.12.2.6.3 (01-01-2020) Correction Procedures Correction procedures for Section 03 fields follow. 3.12.2.6.3.1 (01-01-2023) Field 03WG W-2 Wages Form W-2 wages are transcribed in Field 03WG from Form 1040 , line 1a (TY18 - TY21 line 1, TY17 line 7). Refer to EC 218. 3.12.2.6.3.2 (01-01-2023) Field 03NCP Nontaxable Combat Pay EIC nontaxable combat pay is transcribed in Field 03NCP from Form 1040, line 1i (TY21, Form 1040, line 27b; TY20, located to the left of line 27; TY19, to the left of line 18a; TY18, to the left of line 17; TY17, line 66b) 3.12.2.6.3.3 (01-01-2025) Field 03TWG Total Wages Total wages is transcribed in Field 03TWG from Form 1040, line 1z (TY18 - TY21, line 1; TY17, line 7). 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 118/201/218/337/338. If the taxpayer reports earnings from household employment "HSH" on Form 1040 , line 1b (TY21 and prior, HSH noted on the wages line), enter E in Field 01SPC. Note: Household employees may not have Forms W-2 to support their entry for wages, line 1b. For TY21 and prior, 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. 3.12.2.6.3.4 (11-27-2020) Field 03TEI Tax-Exempt Interest Tax-exempt interest is transcribed in Field 03TEI from Form 1040 , line 2a (TY17, located on line 8b). ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Refer to Error Code 218. 3.12.2.6.3.5 (11-27-2020) Field 03INT Taxable Interest Taxable interest is transcribed in Field 03INT from Form 1040, line 2b (TY17, located on line 8a). Beginning in TY97, negative taxable interest amounts stemming from inflation-indexed bonds may be claimed on Form 1040, line 8a. Refer to EC 218. 3.12.2.6.3.6 (11-27-2020) Field 03QD Qualified Dividends Qualified dividends are transcribed in Field 03QD from Form 1040, line 3a (TY17, located on line 9b). Qualified dividends and distributions are reported to the taxpayer on Form 1099-DIV, box 1b. Taxpayers are not required to attach Form 1099-DIV to their return. Refer to EC 218. 3.12.2.6.3.7 (11-27-2020) Field 03DIV, Ordinary Dividends Ordinary dividends are transcribed in Field 03DIV from Form 1040, line 3b (TY17, located on line 9a). Ordinary dividends and distributions are reported to the taxpayer on Form 1099-DIV, box 1a. Taxpayers are not required to attach Form 1099-DIV to their return. Refer to EC 218. 3.12.2.6.3.8 (11-27-2020) Field 03GIR Gross IRA Distributions Gross IRA distributions are transcribed in Field 03GIR from Form 1040, line 4a (TY17, located on line 15a). Refer to EC 218. 3.12.2.6.3.9 (11-27-2020) Field 03TIR Taxable IRA Distributions Taxable IRA distributions are transcribed in Field 03TIR from Form 1040, line 4b (TY17, located on line 15b). Refer to EC 218. 3.12.2.6.3.10 (11-27-2020) Field 03GPA Gross Pensions and Annuities Gross pensions and annuities are transcribed in Field 03GPA from Form 1040, line 5a (TY19 located on line 4c; TY17, located on line 16a). TY18, gross IRAs, pensions, and annuities are located on Form 1040. line 4a. Refer to EC 218. 3.12.2.6.3.11 (01-03-2023) Field 03TPA Taxable Pensions and Annuities Taxable pensions and annuities are transcribed in Field 03TPA from Form 1040, line 5b (TY19 located on line 4d; TY17, located on line 16b). TY18, taxable IRAs, pensions, and annuities are located on Form 1040, line 4b. Refer to EC 218. 3.12.2.6.3.12 (01-01-2024) Field 03GSS Gross Social Security Benefits Gross social security benefits are transcribed in Field 03GSS from Form 1040, line 6a (TY19 and TY18, located on line 5a; TY17, located on line 20a). Refer to EC 214. 3.12.2.6.3.13 (01-01-2024) Field 03TSS Taxable Social Security Benefits Taxable social security benefits are transcribed in Field 03TSS from Form 1040, line 6b (TY19 and TY18 located on line 5b; TY17, located on line 20b). For TY94 and later, social security can be taxed up to 85 percent. For TY93 and prior, up to 50 percent was taxable. Refer to EC 214. 3.12.2.6.3.14 (11-27-2020) Field 03CGL, Schedule D Profit or Loss Capital gain or loss is transcribed in Field 03CGL from Form 1040, line 7 (TY19, located on line 6; TY18, located on Schedule 1, line 13; TY17, Form 1040, line 13). Refer to EC 204. 3.12.2.6.3.15 (01-01-2024) Field 03ADD, Additional Income Field 03ADD, Additional Income, is transcribed from Form 1040, line 8 (TY19, located on line 7a; TY18, located on Schedule 1, line 22). Refer to EC 218. 3.12.2.6.3.16 (01-03-2023) Field 03TOT Total Income Total income is transcribed in Field 03TOT from Form 1040, line 9 (TY19, located on line 7b; TY18, located on line 6, Form 1040; TY17, line 22). Refer to EC 218. 3.12.2.6.3.17 (11-27-2020) Field 03TAJ Total Adjustments Total adjustments amount is transcribed in Field 03TAJ from Form 1040, line 10 (TY20, located on line 10c; TY19, located on line 8a; TY18, located on Schedule 1, line 36; TY17, Form 1040, line 36). Refer to EC 229. 3.12.2.6.3.18 (11-27-2020) Field 03AGI Adjusted Gross Income Adjusted gross income (AGI) is transcribed in Field 03AGI from Form 1040 , line 11 (TY19, located on line 8b; TY18, located on line 7, Form 1040; TY17, line 37). Refer to EC 230. 3.12.2.6.3.19 (11-27-2020) Field 03QBI, Qualified Business Income Deduction Qualified Business Income Deduction (QBID) is transcribed in Field 03QBI from Form 1040, line 13 (TY19, located on line 10; TY18, located on line 9). Field 03QBI is valid for TY18 and later only. Refer to EC 248 and 249. 3.12.2.6.3.20 (01-01-2024) Field 03INC Taxable Income Amount Taxable income is transcribed in Field 03INC from Form 1040, line 15 (TY19, located on line 11b; TY18, located on line 10; TY17, line 43). The transcribed taxable income field has a computer-generated underprint. Refer to EC 250, and 265. 3.12.2.6.3.21 (11-27-2020) Field 03TTX Tentative Tax Tentative tax is transcribed in Field 03TTX from Form 1040, line 16 (TY19, located on line 12a; TY18, located on line 11a; TY17, line 44). Refer to EC 265. 3.12.2.6.3.22 (01-01-2020) Field 03AF, Additional Forms 8814 Attached Field 03AF, Additional Forms 8814 Attached, is for ERS input only. This one-position field is valid for Form 1040 only, holds only a positive number and is for use only when more than three Forms 8814 are present. The largest allowable number in the field is 9. Three Forms 8814 may be transcribed with a return in Sections 40, 41, and 42. Field 03AF holds the number of Forms 8814 for which there is no transcribed section. For instance, if four Forms 8814 are attached, and the first three are transcribed as Section 40, 41, and 42, enter the number 1 in Field 03AF. If there are five Forms 8814, enter the number 2 in Field 03AF. Use Command Code GTSEC to verify that the first three Forms 8814 are transcribed in Section 40, 41, and 42. Subtract three from the number of Forms 8814 and enter the result in Field 03AF. If twelve or more Forms 8814 are present, enter the number 9 in Field 03AF. Refer to EC 265. 3.12.2.6.3.23 (01-01-2020) Field 03AT, Additional Forms 8814 Tax Field 03AT, Additional Forms 8814 Tax, is for ERS input only on Form 1040. Enter the additional tax amount in Field 03AT from the Form(s) 8814 not transcribed in Sections 40, 41, and 42. Refer to EC 265. 3.12.2.6.3.24 (11-27-2020) Field 03COD, Child Tax and Other Dependent Credit Child Tax Credit The amount claimed for Child Tax Credit (CTC) and Credit for Other Dependents (ODC) is transcribed in Field 03COD from Form 1040, line 19 (TY19, located on line 13a; TY18, located on line 12a; TY17, CTC amount is located on line 52). CTC is valid for TY98 and later. ODC is valid for TY18 and later. Refer to EC 287, 289, and 290. 3.12.2.6.3.25 (06-10-2021) Field 03NRC Total Statutory Credits Total statutory credits are transcribed in Field 03NRC from Form 1040, line 21 (TY19, located on line 13b; TY18, located on line 12; TY17, line 55). Refer to EC 310. 3.12.2.6.3.26 (11-27-2020) Field 03OTX, Total Other Taxes Total other taxes amount is transcribed in Field 03OTX from Form 1040, line 23 (TY19, located on line 15; TY18, located on line 14) and applies to TY18 and later returns only. Refer to EC 333. 3.12.2.6.3.27 (11-27-2020) Field 03TAX Total Tax Total tax is transcribed in Field 03TAX from Form 1040, line 24 (TY19, located on line 16; TY18, located on line 15; TY17, line 63). 3.12.2.6.3.28 (11-27-2020) Field 03WH Withholding Withholding is transcribed in Field 03WH from Form 1040, line 25d (TY19, located on line 17; TY18, located on line 16; TY17, line 64). Enter the amount from attachments, if applicable, when withholding is blank, dash (-), or 0 (zero). Refer to EC 118 and 366. 3.12.2.6.3.29 (11-27-2020) Field 03ESP Estimated Tax Credit Estimated tax credits is transcribed in Field 03ESP from Form 1040, line 26 (TY19, located on line 8, Schedule 3; TY18, located on line 66, Schedule 5; TY17, Form 1040, line 65). Refer to EC 366 and EC 370. 3.12.2.6.3.30 (01-01-2023) Field 03EIC Earned Income Credit (EIC) Earned Income Credit (EIC) is transcribed in Field 03EIC from Form 1040, line 27 (TY21, located on line 27a, TY20, located on line 27; TY19, located on line 18a; TY18, located on line 17a; TY17, line 66a). Refer to EC 336, 337, and 338. When taxpayers indicate they want the IRS to compute their EIC without qualified children (i.e., "EIC" written near the EIC line and no Schedule EIC attached), Code and Edit will edit "888" on the EIC line to generate ERS correction. Refer to EC 338. 3.12.2.6.3.31 (01-01-2025) Field 03ACT Additional Child Tax Credit Additional Child Tax Credit (ACTC) is transcribed in Field 03ACT from Form 1040 , line 28 for TY20 and subsequent (TY19, located on line 18b; TY18, located on line 17b; TY17, line 67). TY21, the credit was also identified as Refundable Child Tax Credit (RCTC). This field is applicable for TY98 and later. Refer to EC 344. 3.12.2.6.3.32 (11-27-2020) Field 03AOC Form 8863 Refundable Education Credit Refundable education credit or American Opportunity Credit (AOC) is transcribed in Field 03AOC from Form 1040, line 29 (TY19, located on line 18c; TY18, located on line 17c; TY17, line 68). Refundable Education Credit is valid for TY09 and later. Refer to EC 347. 3.12.2.6.3.33 (01-01-2024) Field 03RCR, Refundable Credits Refundable credits is transcribed in Field 03RCR from Form 1040, line 32 (TY19, located on line 18e; TY18, located on line 17), and applies to TY18 and later returns. Refer to EC 364. 3.12.2.6.3.34 (11-27-2020) Field 03PAY Total Payments Total payments is transcribed in Field 03PAY from Form 1040, line 33 (TY19, located on line 19; TY18, located on line 18; TY17, line 74). Refer to EC 366. 3.12.2.6.3.35 (01-01-2025) Field 03BDR, Balance Due/Refund Field 03BDR can be either positive or negative depending on the taxpayer’s entry. This field will be: Negative (meaning a refund due to taxpayer) amount if transcribed from Form 1040, line 35a (TY19, located on line 21a; TY18, located on line 20a; TY17, line 76a). Positive (meaning amount due to IRS) amount if transcribed from Form 1040, line 37 (TY19, located on line 23; TY18, located on line 22; TY17, line 78). Note: ISRP will enter the amount as a refund if the only entry by the taxpayer is on the Overpaid line, Form 1040, line 34 (TY19, line 20; TY18, line 19; TY17, line 75). Refer to EC 370. 3.12.2.6.3.36 (01-01-2023) Field 03CEL, Estimated Tax Credit Elect Estimated Tax Credit Elect or estimated tax election is transcribed from Form 1040 , line 36 (TY19, located on line 22; TY18, located on line 21; TY17, line 77). Field 03CEL is used to indicate the amount of overpayment the taxpayer wants applied to the next year’s tax liability. Refer to EC 370. 3.12.2.6.3.37 (01-01-2024) Field 03ETP, Pre-Determined Estimated Tax Penalty Estimated tax penalty is transcribed from Form 1040, line 38 (TY19, located on line 24; TY18, located on line 23; TY17, line 79). 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 fishers. Refer to EC 368 and 370. 3.12.2.6.3.38 (01-01-2025) Field 03AI, Third Party Designee Authorization Indicator Field 03AI is transcribed from the third party designee area above the signature area on Form 1040, below line 38, page 2 (TY18, located on Schedule 6). Use the following procedures to correct Field 03AI: If the Third Party Designee Yes box is checked, enter 1. TY18, if the 3rd Party Designee box in the paid preparer area is checked on page 1, enter 1. If taxpayer checks the No box, enter 0 (zero). If taxpayer checks both boxes or does not check a box, enter 0 (zero). 3.12.2.6.3.39 (01-01-2024) Field 03TPN, Third Party Designee Name Field 03TPN is transcribed from the third party designee area above the signature area on Form 1040, below line 38, page 2 (TY18, located on Schedule 6). The taxpayer is instructed to enter the name of the person designated to discuss their tax return. This field is 20 characters in length. 3.12.2.6.3.40 (01-01-2024) Field 03TPI, Third Party Designee Identification Number Field 03TPI is transcribed from the third party designee area above the signature area on Form 1040, below line 38, page 2 (TY18, located on Schedule 6). The taxpayer is instructed to enter five digits that the designee chooses as a personal identification number. 3.12.2.6.3.41 (01-01-2025) Field 03EMW, E-File Mandate Waiver Indicator 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. Code and Edit will edit 1 through 6 in the lower-right margin of Form 1040, page 2 from the exception box checked by the preparer on Form 8948. Field 03EMW is invalid if other than blank, zero, or 1 through 6. Code 1 indicates box 1 is marked, code 2 is box 2, code 3 is box 3, code 4 is box 4, code 5 is box 5, and code 6 is box 6a-c. Compare the field on the screen with the box checked on Form 8948. If edited or transcribed incorrectly, correct the screen display. If multiple boxes are checked on Form 8948, enter the indicator according to this priority: 6a, 6b, 6c, 3, 2, 1, 4, or 5. 3.12.2.6.3.42 (01-01-2020) Field 03PT, Preparer TIN The Preparer TIN (PTIN) field is transcribed from the paid preparer's area at the bottom of Form 1040 , page 2 (TY18, located on page 1). Field 03PT is a nine-character alphanumeric code. The first character is P or S. The remaining eight characters are numbers. Field 03PT is invalid if the entry meets any of these conditions: is all zeros: 000000000 is all nines: 999999999 has fewer than nine characters Compare the entry in the field with the entry on the return and correct any errors. Correct the field errors below according to the instructions in the table. If... Then... A] the PTIN/SSN is unavailable, incomplete, or illegible, delete the entry from Field 03PT. B] the PTIN is all zeros or all nines delete the entry from Field 03PT. 3.12.2.6.3.43 (01-01-2020) Field 03PE, Preparer EIN Field 03PE, Preparer's EIN, is transcribed from the paid preparer area at the bottom of page 2, Form 1040 (TY18, located on page 1). This field is invalid if the Preparer's EIN is present and any of the following exist: Not numeric All zeros (000000000) All nines (999999999) Fewer than nine digits 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. 3.12.2.6.3.44 (01-01-2024) Field 03PC, Preparer's Code If the return has been prepared by VITA or IRS, Code and Edit will edit a code to the right of "Check if" box in the paid preparer area of page 2, Form 1040 (TY18, page 1, Form 1040). Field 03PC will be invalid if the Preparer's Code is other than P, or R. Compare the entry in Field 03PC with the entry on the return. When edited or transcribed incorrectly, correct the screen display with the correct code as follows: If return was prepared by... Then... A] IRS, Enter P in Field 03PC. B] Other than the IRS, but reviewed by IRS, Enter R in Field 03PC. 3.12.2.6.3.45 (01-01-2020) Field 03PTN, Preparer Telephone Number Field 03PTN is transcribed from the paid preparer area at the bottom of page 2, Form 1040 (TY18, page 1, Form 1040). Field 03PTN is a ten-digit field that can contain alpha, numeric and blank entries. 3.12.2.6.3.46 (01-01-2024) Field 03PSC, Form 1040C Credit This field is ERS input only. Enter the amount of credit in Field 03PSC if there is an indication that a taxpayer is claiming a credit from Form 1040C in the Payments area of Form 1040 or Schedule 3 (TY18, Schedule 5). Note: Form 1040C serves as a payment voucher for aliens leaving the country before the tax return is due. 3.12.2.7 (01-01-2024) Section 04, Additional Income and Adjustments to Income Section 04 includes additional income and adjustments to income from Form 1040, Schedule 1. 3.12.2.7.1 (01-01-2025) Error Record Format Section 04 Form 1040 Section 04 consists of the following fields: Form 1040 Field Name Form 1040 Field Location 04KAM Form 1099-K Amount Schedule 1, below Name(s) shown on Form 1040 0401 State Income Tax Refund Schedule 1, line 1 0402A Alimony Received Schedule 1, line 2a 0403 Combined Schedule C Profit/Loss Schedule 1, line 3 0404 Supplemental Gains and Losses Schedule 1, line 4 0405 Schedule E Profit/Loss Schedule 1, line 5 0406 Combined Schedule F Profit/Loss Schedule 1, line 6 0407 Taxable Unemployment Compensation Schedule 1, line 7 04SFG Scholarship and Fellowship Grants Schedule 1, line 8r (TY22 and later) 04OTI Other Income Schedule 1, line 9 04RTA Form 982 Indicator Edited in the left margin of line 11 04EDU Educator Expenses Schedule 1, line 11 04CBE Reservist and Other Business Expense Schedule 1, line 12 04HSA Combined Health Savings Account Deduction Schedule 1, line 13 04MOV Form 3903 Moving Expenses Schedule 1, line 14 04DSE Deduction for SE Tax Amount Schedule 1, line 15 04SEP SE Retirement Plans Deduction Schedule 1, line 16 04HID Self Employed Health Insurance Schedule 1, line 17 04PEW Penalty on Savings Withdrawal Schedule 1, line 18 04ALP Alimony Paid Schedule 1, line 19a 04SSN Alimony SSN Schedule 1, line 19b 04IRA IRA Payment Deduction Schedule 1, line 20 04SLI Student Loan Interest Deduction Schedule 1, line 21 04MSA Archer Medical Savings Account (MSA) Deduction Schedule 1, line 23 04ADJ Other Adjustments Schedule 1, line 25 3.12.2.7.2 (01-01-2017) Invalid Conditions Fields in Section 04 are invalid if not all numeric. 3.12.2.7.3 (01-01-2017) Correction Procedures Correction procedures for Section 04 fields follow. 3.12.2.7.3.1 (01-01-2025) Field 04KAM, Form 1099-K Amount Amount reported on Form(s) 1099-K that was included in error or for personal items sold at a loss is transcribed in Field 04KAM from Schedule 1, below Names found on Form and above Part I of Schedule 1. 3.12.2.7.3.2 (01-01-2020) Field 0401, State Income Tax Refund Taxable refunds, credits, or offsets of state and local income taxes are transcribed in Field 0401 from Schedule 1, line 1 (TY18, located on Schedule 1, line 10; TY17, Form 1040, line 10). Refer to EC 218. 3.12.2.7.3.3 (11-27-2020) Field 0402A, Alimony Received Alimony received is transcribed in Field 0402A from Schedule 1, line 2a (TY18, located on Schedule 1, line 11; TY17, Form 1040, line 11). TY19 and TY20 only, if the date on Schedule 1, line 2b, is after December 31, 2018, do not enter the amount in Field 0402A. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ when the taxpayer changed alimony "received" to "recaptured" . Refer to EC 218. 3.12.2.7.3.4 (01-01-2020) Field 0403, Combined Schedule C Profit or Loss Business income or loss is transcribed in Field 0403 from Schedule 1, line 3 (TY18, located on Schedule 1, line 12; TY17, Form 1040, line 12). Refer to EC 202. 3.12.2.7.3.5 (01-01-2020) Field 0404, Other Gains or Losses Other gains or losses is transcribed in Field 0404 from Schedule 1, line 4 (TY18, located on Schedule 1, line 14: TY17, Form 1040, line 14). 3.12.2.7.3.6 (01-01-2020) Field 0405, Schedule E Income or Loss Rental real estate, royalties, partnerships, S corporations, trusts, etc., are transcribed in Field 0405 from Schedule 1, line 5 (TY18, located on Schedule 1, line 17; TY17, Form 1040, line 17). Refer to EC 206. 3.12.2.7.3.7 (01-01-2020) Field 0406, Combined Schedule F Profit or Loss Farm income or loss is transcribed in Field 0406 from Schedule 1, line 6 (TY18, located on Schedule 1, line 18; TY17, Form 1040, line 18). Refer to EC 208. 3.12.2.7.3.8 (11-27-2020) Field 0407, Taxable Unemployment Compensation Unemployment compensation is transcribed in Field 0407 from Schedule 1, line 7 (TY18, located on Schedule 1, line 19; TY17, Form 1040, line 19). Taxpayers who received an overpayment of unemployment compensation during the year and repaid it during the tax year are instructed to notate Repaid. Refer to EC 218. Alaska Permanent Fund Dividend (APFD) recipients and taxpayers receiving "Income Tax Energy Rebates" from New Mexico and Oklahoma are instructed to report these amounts as taxable unemployment compensation. Taxpayers report Supplemental Unemployment Benefits (sub-pay) as wages for TY87 and later. Refer to EC 218. 3.12.2.7.3.9 (01-01-2025) Field 04SFG, Scholarship and Fellowship Grants Scholarship and Fellowship Grants is transcribed in Field 04SFG from Schedule 1, line 8r (TY22 and later). Refer to EC 218/337/338/344. 3.12.2.7.3.10 (01-01-2020) Field 04OTI, Other Income Other income is transcribed in Field 04OTI from Schedule 1, line 9 (TY20 and TY19, located on line 8; TY18, located on Schedule 1, line 21; TY17, Form 1040, line 21). Refer to EC 218. 3.12.2.7.3.11 (01-01-2020) Field 04RTA, Form 982 Indicator Code and Edit edits "1" in the left margin of Schedule 1, line 11, (TY20 and prior, located in the left margin of Schedule 1, line 10) when Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (And Section 1082 Basis Adjustment), is attached. Field 04RTA is transcribed when the Form 982 Indicator is edited. This is a one-digit numeric field. This field will be invalid if other than 0 or 1. 3.12.2.7.3.12 (11-27-2020) Fields 04EDU, Educator Expenses Educator expenses is transcribed in Field 04EDU from Schedule 1, line 11 (TY20 and TY19, located on Schedule 1, line 10; TY18, located on Schedule 1, line 23; TY17, Form 1040, line 23). Refer to EC 220. 3.12.2.7.3.13 (01-01-2020) Field 04CBE, Reservist and Others Business Expenses Field 04CBE is transcribed from Schedule 1, line 12 (TY20 and TY19, located on Schedule 1, line 11; TY18, located on Schedule 1, line 24; TY17, Form 1040, line 24). Certain business expenses of reservists, performing artists, and fee-basis government officials are reported on Form 2106. This field will be invalid if other than numeric or blank. Refer to EC 229. 3.12.2.7.3.14 (01-01-2020) Field 04HSA, Combined Health Savings Account Deduction Health Savings Account deduction is transcribed in Field 04HSA from Schedule 1, line 13 (TY20 and TY19, located on Schedule 1, line 12; TY18, located on Schedule 1, line 25; TY17, Form 1040, line 25). Refer to EC 226. 3.12.2.7.3.15 (01-01-2020) Field 04MOV, Form 3903 Moving Expenses Moving expenses is transcribed in Field 04MOV from Schedule 1, line 14 (TY20 and TY19, located on Schedule 1, line 13; TY18, located on Schedule 1, line 26; TY17, Form 1040, line 26). Refer to EC 229. 3.12.2.7.3.16 (01-01-2020) Field 04DSE, Deduction for Self-Employment Tax The deduction for self-employment (SE) tax is transcribed in Field 04DSE from Schedule 1, line 15 (TY20 and TY19, located on Schedule 1, line 14; TY18, located on Schedule 1, line 27; TY17, Form 1040, line 27). Refer to EC 211. 3.12.2.7.3.17 (01-01-2020) Field 04SEP, Self Employed Retirement Plans Deduction Self-employed SEP, SIMPLE, and qualified plans deduction is transcribed in Field 04SEP from Schedule 1, line 16 (TY20 and TY19, located on Schedule 1, line 15; TY18, located on Schedule 1, line 28; TY17, Form 1040, line 28). Refer to EC 222. 3.12.2.7.3.18 (01-01-2020) Field 04HID, Self Employed Health Insurance Deduction Self-employed health insurance deduction is transcribed in Field 04HID from Schedule 1, line 17 (TY20 and TY19, located on Schedule 1, line 16; TY18, located on Schedule 1, line 29; TY17, Form 1040, line 29). Refer to EC 229. 3.12.2.7.3.19 (01-01-2020) Field 04PEW, Penalty on Savings Withdrawal Penalty on early withdrawal of savings is transcribed in Field 04PEW from Schedule 1, line 18 (TY20 and TY19, located on Schedule 1, line 17; TY18, located on Schedule 1, line 30; TY17, Form 1040, line 30). Refer to EC 229. 3.12.2.7.3.20 (11-27-2020) Field 04ALP, Alimony Paid Alimony paid is transcribed in Field 04ALP from Schedule 1, line 19a (TY20 and TY19, located on Schedule 1, line 18a; TY18, located on Schedule 1, line 31a; TY17, Form 1040, line 31a). TY19 and TY20 only, if the date on line 18c is after December 31, 2018, do not enter the amount in Field 04ALP. Refer to EC 078 and EC 229. 3.12.2.7.3.21 (01-01-2025) Field 04SSN, Alimony SSN Alimony Recipient’s SSN is transcribed in Field 04SSN from Schedule 1, line 19b (TY20, located on Schedule 1, line 18b; TY19, located on Schedule 1, line 19b; TY18, located on Schedule 1, line 31b; TY17, Form 1040, line 31b). When a correction is made to the alimony recipient’s SSN in Field 04SSN, GTSEC 02 and enter R in Field 02RI to revalidate. Refer to EC 078. 3.12.2.7.3.22 (11-27-2020) Field 04IRA, IRA Deduction IRA deduction is transcribed in Field 04IRA from Schedule 1, line 20 (TY20 and TY19, located on Schedule 1, line 19; TY18, located on Schedule 1, line 32; TY17, Form 1040, line 32). Refer to EC 222. 3.12.2.7.3.23 (11-27-2020) Field 04SLI, Student Loan Interest Deduction Student loan interest deduction is transcribed in Field 04SLI from Schedule 1, line 21 (TY20 and TY19, located on Schedule 1, line 20; TY18, located on Schedule 1, line 33; TY17, Form 1040, line 33). Refer to EC 224. 3.12.2.7.3.24 (01-03-2023) Field 04MSA, Archer Medical Savings Account (MSA) Deduction Field 04MSA is transcribed from the dotted portion of Schedule 1, line 23 (TY21, located on Schedule 1, line 23; TY20 and TY19, located on the dotted portion of Schedule 1, line 22; TY18, located on Schedule 1, line 36). Refer to EC 227. 3.12.2.7.3.25 (01-03-2023) Field 04ADJ, Other Adjustments Field 04ADJ is transcribed from the dotted portion of Schedule 1, line 25 (TY21, located on Schedule 1, line 25; TY20 and TY19, located on the dotted portion of Schedule 1, line 22; TY18, located on Schedule 1, line 36). Refer to EC 229. 3.12.2.8 (11-27-2020) Section 05, Additional Taxes, Additional Credits and Payments Section 05 includes additional taxes from Form 1040, Schedule 2, and additional credits and payments from Form 1040, Schedule 3. 3.12.2.8.1 (01-01-2025) Error Record Format Section 05 Form 1040 Section 05 consists of the following fields: Form 1040 Field Name Form 1040 Field Location 0521A Excess Advance Premium Tax Credit Repayment Schedule 2, line 1a 0521B Repayment of Clean Vehicle Credit Schedule 2, line 1b 0521C Repayment of Previously Owned Clean Vehicle Credit Schedule 2, line 1c 0521D Schedule 2 Part I Form 4255 Recapture Amount Schedule 2, line 1d 0521E Form 4255 Excessive Payments Amount Schedule 2, line 1e 05PCK Form 4255 Excessive Payments Checkbox Schedule 2, checkboxes below line 1e 0521F Form 4255 Chapter 1 Tax Amount Schedule 2, line 1f 05TCK Form 4255 Chapter 1 Tax Checkbox Schedule 2, checkboxes below line 1f 0521Y Other Additions to Tax Schedule 2, line 1y 05202 Alternative Minimum Tax Schedule 2, line 2 05204 Combined Self-Employment Tax Schedule 2, line 4 05SSM Unreported Social Security and Medicare Tax from Forms 4137 and 8919 Schedule 2, line 7 05IRA Combined Tax Retirement Plans Schedule 2, line 8 05HSH Combined Household Employment Tax Amount Schedule 2, line 9 05FHB First-Time Homebuyer Credit Repayment Schedule 2, line 10 05AMT Form 8959 Additional Medicare Tax Schedule 2, line 11 05NIT Form 8960 Net Investment Income Tax Schedule 2, line 12 05USS Uncollected Social Security Tax on Tips Schedule 2, line 13 05III Interest Due on Installment Income (IRC 453 Tax; Code L) Schedule 2, line 14 05IDT Interest on Deferred Tax (IRC 453 Tax; Code A) Schedule 2, line 15 05LIR Form 8611 Recapture Tax Schedule 2, line 16 05TAT Total Additional Taxes Schedule 2, line 18 05EPR Schedule 2 Part II Form 4255 Recapture Amount Schedule 2, line 19 05965 Section 965 Tax Installment Schedule 2, line 20 05TL Section 965 Tax Liability ERS input only 05PYC Prior Year Advanced Credit ERS input only 05301 Foreign Tax Credit Schedule 3, line 1 05302 Credit for Child and Dependent Care Schedule 3, line 2 05303 Education Credit Schedule 3, line 3 05304 Retirement Savings Contribution Credit Schedule 3, line 4 0505A Residential Clean Energy Credit Schedule 3, line 5a 0505B Energy Efficient Home Improvement Credit Schedule 3, line 5b 05GBC General Business Credit Schedule 3, line 6a 05PYM Credit for Prior Year Minimum Tax Schedule 3, line 6b 05ADC Adoption Credit Schedule 3, line 6c 05ELD Credit for the Elderly Schedule 3, line 6d 05AMC Form 8910 Alternative Motor Vehicle Credit Schedule 3, line 6e 05CVC Clean Vehicles Credit Schedule 3, line 6f 05MIC Mortgage Interest Credit Schedule 3, line 6g 05POC Previously Owned Clean Vehicles Credit Schedule 3, line 6m 05OSC Other Statutory Credits Schedule 3, line 6h through 6l (6z ERS only) 05ONC Total Other Nonrefundable Credits Schedule 3, line 7 05PTC Reconciled Premium Tax Credit Amount Schedule 3, line 9 05EXT Form 4868 Payment with Request for Extension Schedule 3, line 10 05ESS Excess Social Security and RRTA Tax Schedule 3, line 11 05FUE Form 4136 Fuel Tax Credit Schedule 3, line 12 05RIC Form 2439 Regulated Investment Company and Real Estate Investment Trust Credit Schedule 3, line 13a 05EYR Credit for Earlier Year Income Repayment Schedule 3, line 13b 05EPA Net Elective Payment Election Amount Schedule 3, line 13c 05OTH Other Payment or Credit Amount ERS input only, Schedule 3, line 13d and 13z write-in 05TYP Other Payment or Credit Type Code ERS input only, left of line 13z 05OPR Total Other Payments and Refundable Credits Schedule 3, line 14 3.12.2.8.2 (01-01-2020) Invalid Conditions Fields in Section 05 will display as invalid if not all numeric. 3.12.2.8.3 (01-01-2017) Correction Procedures Correction procedures for Section 05 fields follow. 3.12.2.8.3.1 (01-01-2025) Field 0521A, Excess Advance Premium Tax Credit Repayment Advance premium tax credit (APTC) repayment is transcribed in Field 0521A from Schedule 2, line 1a (TY23-TY19, Schedule 2, line 2; TY18, Schedule 2, line 46; TY17, Form 1040, line 46). The field must be numeric, positive, and dollars only. Refer to EC 190 and EC 270. 3.12.2.8.3.2 (01-01-2025) Field 0521B, Repayment of Clean Vehicle Credit Repayment of new clean vehicle credit is transcribed in Field 0521B from Schedule 2, line 1b. Refer to EC 277. 3.12.2.8.3.3 (01-01-2025) Field 0521C, Repayment of Previously Owned Clean Vehicle Credit Repayment of previously owned clean vehicle credit is transcribed in Field 0521C from Schedule 2, line 1c. Refer to EC 277. 3.12.2.8.3.4 (01-01-2025) Field 0521D, Schedule 2 Part I Form 4255 Recapture Amount Recapture of net EPE from Form 4255, line 2a, column (l), is transcribed in Field 0521D from Schedule 2, line 1d. Refer to EC 277. 3.12.2.8.3.5 (01-01-2025) Field 0521E, Form 4255 Excessive Payments Amount Excessive payments from Form 4255 is transcribed in Field 0521E from Schedule 2, line 1e. Refer to EC 277. 3.12.2.8.3.6 (01-01-2025) Field 05PCK, Form 4255 Excessive Payments Checkbox Field 05PCK is a four-position numeric field transcribed from the checkboxes below Schedule 2, line 1e. Field 05PCK valid values are defined as follows: 0 in any position (box is not checked) 1 in position 1 of the field - Checkbox i is checked 2 in position 2 of the field - Checkbox ii is checked 3 in position 3 of the field - Checkbox iii is checked 4 in position 4 of the field - Checkbox iv is checked Refer to EC 277. 3.12.2.8.3.7 (01-01-2025) Field 0521F, Form 4255 Chapter 1 Tax Amount Increase in Chapter 1 tax from Form 4255 is transcribed in Field 0521F from Schedule 2, line 1f. Refer to EC 277. 3.12.2.8.3.8 (01-01-2025) Field 05TCK, Form 4255 Chapter 1 Tax Checkbox Field 05TCK is a four-position numeric field transcribed from the checkboxes below Schedule 2, line 1f. Field 05TCK valid values are defined as follows: 0 in any position (box is not checked) 1 in position 1 of the field - Checkbox i is checked 2 in position 2 of the field - Checkbox ii is checked 3 in position 3 of the field - Checkbox iii is checked 4 in position 4 of the field - Checkbox iv is checked Refer to EC 277. 3.12.2.8.3.9 (01-01-2025) Field 0521Y, Other Additions to Tax Other additions to tax is transcribed in Field 0521Y from Schedule 2, line 1y. Refer to EC 277. 3.12.2.8.3.10 (01-01-2025) Field 05202, Alternative Minimum Tax, Form 6251 Alternative minimum tax (AMT) is transcribed in Field 05202 from Schedule 2, line 2 (TY23-TY19, Schedule 2, line 1; TY18, Schedule 2, line 45; TY17, Form 1040, line 45). Refer to EC 267. 3.12.2.8.3.11 (01-01-2020) Field 05204, Combined Self-Employment Tax Combined self-employment tax is transcribed in Field 05204 from Schedule 2, line 4 (TY18, located on Schedule 4, line 57; TY17, Form 1040, line 57). Refer to EC 209. 3.12.2.8.3.12 (01-01-2020) Field 05SSM, Combined Unreported Social Security and Medicare Tax, Forms 4137 and 8919 Combined unreported social security and Medicare tax from Form 4137 and Form 8919 is transcribed in Field 05SSM from Schedule 2, line 7 (TY20 and TY19, located on Schedule 2, line 5; TY18, located on Schedule 4, line 58; TY17, Form 140, line 58). Refer to EC 314. 3.12.2.8.3.13 (01-01-2020) Field 05IRA, Combined Tax on Retirement Plans Additional tax on IRAs and other retirement plans is transcribed in Field 05IRA from Schedule 2, line 8 (TY20 and TY19, located on Schedule 2, line 6; TY18, located on Schedule 4, line 59; TY17, Form 1040, line 59). Refer to EC 318. 3.12.2.8.3.14 (01-01-2020) Field 05HSH, Combined Household Employment Taxes, Schedule H Combined household employment taxes is transcribed in Field 05HSH from Schedule 2, line 9 (TY20 and TY19, located on Schedule 2, line 7a; TY18, located on Schedule 4, line 60a; TY17, Form 1040, line 60a). Combined household employment taxes field is valid for TY95 and later. Refer to EC 322, EC 324 and EC 326. 3.12.2.8.3.15 (01-01-2020) Field 05FHB, First-Time Homebuyer Credit Repayment First-time homebuyer credit repayment is transcribed in Field 05FHB from Schedule 2, line 10 (TY20 and TY19, located on Schedule 2, line 7b; TY18, located on Schedule 4, line 60b; TY17, Form 1040, line 60b). Refer to EC 329. 3.12.2.8.3.16 (01-01-2024) Field 05AMT, Form 8959 Additional Medicare Tax Field 05AMT, Form 8959 Additional Medicare Tax is transcribed from Schedule 2, line 11 (TY20 and TY19, Schedule 2, line 8a; TY18, Schedule 4, line 62a). Refer to EC 331 and 333. 3.12.2.8.3.17 (01-01-2024) Field 05NIT, Form 8960 Net Investment Income Tax Field 05NIT, Form 8960 Net Investment Income Tax is transcribed from Schedule 2, line 12 (TY20 and TY19, Schedule 2, line 8b; TY18, Schedule 4, line 62b). Refer to EC 332 and 333. 3.12.2.8.3.18 (01-01-2024) Field 05USS, Uncollected Tax on Reported Tips Field 05USS, Uncollected tax on reported tips is transcribed in Field 05USS from Schedule 2, line 13 (TY20 and TY19, is a write-in located on Schedule 2, line 8c; TY18, located on Schedule 4, line 62c; TY17, Form 1040, line 62c). Refer to Form W-2, box 12, Deferral Codes A, B, M and/or N. Enter the amount in Field 05USS. Refer to EC 333. 3.12.2.8.3.19 (01-01-2024) Field 05III, Interest Due on Installment Income (IRC 453 Tax; Code L) Field 05III, Interest Due on Installment Income (IRC 453 tax, code L) is transcribed from Schedule 2, line 14 (TY20 and TY19, located on line 8 with write-in "453(l)(3)" . Blank the field if input on TY18 or prior returns, Refer to EC 333 and 334. 3.12.2.8.3.20 (01-01-2024) Field 05IDT, Interest on Deferred Tax (IRC 453 Tax; Code A) Field 05IDT, Interest on Deferred Tax (IRC 453 tax; code A) is transcribed from Schedule 2, line 15. (TY20 and TY19, located on line 8 with write-in "IRC 453A(c)" . Blank the field if input on TY18 or prior returns, Refer to EC 333 and 334. 3.12.2.8.3.21 (01-01-2022) Field 05LIR, Form 8611 Recapture Field 05LIR, Form 8611 Recapture, is transcribed from Schedule 2, line 16 (TY20 and TY19, is a write-in "LIHCR" located on Schedule 2, line 8; TY18, Schedule 4, line 62; TY17, Form 1040, line 62). Refer to EC 333. 3.12.2.8.3.22 (01-01-2022) Field 05TAT, Total Additional Taxes Field 05TAT, Total Additional Taxes, is transcribed from Schedule 2, line 18 (TY20 and TY19, is a write-in that includes "Other Taxes" located on Schedule 2, line 8; TY18, Schedule 4, line 62; TY17, Form 1040, line 62). Refer to EC 333. 3.12.2.8.3.23 (01-01-2025) Field 05EPR, Schedule 2 Part II Form 4255 Recapture Amount TY24 only, recapture of net EPE from Form 4255, line 1d, column (l) is transcribed in Field 05EPR from Schedule 2, line 19 in Field 05EPR. Refer to EC 333. 3.12.2.8.3.24 (01-01-2020) Field 05965, Section 965 Tax Installment Section 965 net tax liability installment applies to TY18 and later, and is transcribed in Field 05965 from Schedule 2, line 20 (TY20 and TY19, located on Schedule 2, line 9; TY18, located on Schedule 4, line 63; TY17, Form 1040, line 63). Refer to EC 188. 3.12.2.8.3.25 (01-01-2020) Field 05TL, Section 965 Tax Liability Section 965 Tax Liability applies to TY18 and later. Field 05TL is an ERS input only field from Part 1, column (d), Form 965-A. Refer to EC 188. 3.12.2.8.3.26 (01-01-2025) Field 05PYC, Prior Year Advanced Credit Field 05PYC is an ERS input only field for additional tax from Schedule 8812 on Schedule 2, line 19 for TY21 only. Refer to EC 333. 3.12.2.8.3.27 (01-01-2024) Field 05301, Foreign Tax Credit, Form 1116 Foreign Tax Credit is transcribed in Field 05301 from Schedule 3, line 1 (TY18, located on Schedule 3, line 48; TY17, Form 1040, line 48). Refer to EC 277 and EC 310. 3.12.2.8.3.28 (01-01-2024) Field 05302, Credit for Child and Dependent Care Expenses, Form 2441 Credit for child and dependent care expenses is transcribed in Field 05302 from Schedule 3, line 2 (TY18, located on Schedule 3, line 49; TY17, Form 1040, line 49). Refer to EC 279 and 280. 3.12.2.8.3.29 (01-01-2024) Field 05303, Education Credit, Form 8863 Education Credit is transcribed in Field 05303 from Schedule 3, line 3 (TY18, located on Schedule 3, line 50; TY17, Form 1040, line 50). Refer to EC 283, 284, and 285. 3.12.2.8.3.30 (01-01-2024) Field 05304, Retirement Savings Contribution Credit, Form 8880 Retirement Savings Contribution Credit is transcribed in Field 05304 from Schedule 3, line 4 (TY18, located on Schedule 3, line 51; TY17, Form 1040, line 51). Refer to EC 286 and 310. 3.12.2.8.3.31 (01-01-2024) Field 0505A, Residential Clean Energy Credit, Form 5695 Residential Energy Credit is transcribed in Field 0505A from Schedule 3, line 5a (TY19 - TY22, located on Schedule 3, line 5; TY18, Schedule 3, line 53; TY17, Form 1040, line 53). Refer to EC 291. 3.12.2.8.3.32 (01-01-2024) Field 0505B, Energy Efficient Home Improvement Credit, Form 5695 Energy Efficient Home Improvement Credit is transcribed in Field 0505B from Schedule 3, line 5b for TY23 and later. Refer to EC 291. 3.12.2.8.3.33 (01-01-2024) Field 05GBC, General Business Credit, Form 3800 General Business Credit is transcribed in Field 05GBC from Schedule 3, line 6a (TY20 and TY19, transcribed when the taxpayer checks box a on Schedule 3, line 6; TY18, located on Schedule 3, line 54; TY17, Form 1040, line 54). Refer to EC 299, 302, 303, and 310. 3.12.2.8.3.34 (01-01-2024) Field 05PYM, Credit for Prior Year Minimum Tax, Form 8801 Credit for Prior Year Minimum Tax, Form 8801, is transcribed in Field 05PYM from Schedule 3, line 6b (TY20 and TY19, transcribed when the taxpayer checks box b on Schedule 3, line 6; TY18, located on Schedule 3, line 54; TY17, Form 1040, line 54). Refer to EC 303, 308, and 310. 3.12.2.8.3.35 (01-01-2024) Field 05ADC, Adoption Credit, Form 8839 Adoption Credit is transcribed in Field 05ADC from Schedule 3, line 6c (TY20 and TY19, input if the taxpayer checks box c on Form 1040, Schedule 3, line 6; TY18, Schedule 3, line 54; TY17, Form 1040, line 54) and writes "Form 8839" to the right of the box. The non-refundable adoption credit is in effect TY97 through TY09 and TY12 through TY19. For TY10 through TY11, Form 8839 credit is refundable only. Refer to EC 294 and 299. 3.12.2.8.3.36 (01-01-2024) Fields 05ELD, Credit for the Elderly or Disabled, Schedule R Credit for the Elderly or Disabled, Schedule R, is transcribed in Field 05ELD from Schedule 3, line 6d (TY20 and TY19, input if box c on Schedule 3, line 6 is checked; TY18, Schedule 3, line 54; TY17, Form 1040, line 54, and write "Sch R" ). Enter the credit amount from Schedule R in Field 05ELD. If "CFE" or "Sch R" is noted with an amount, and Schedule R is not attached, SSPND 211. Refer to EC 282. 3.12.2.8.3.37 (01-01-2024) Field 05AMC, Alternative Motor Vehicle Credit, Form 8910 Alternative Motor Vehicle Credit, Form 8910, is transcribed in Field 05AMC for TY22 and prior only. Field 05AMC is transcribed from Schedule 3, line 6e for TY22 and TY21 (TY20 and TY19, input if the taxpayer checks box c on Form 1040, Schedule 3, line 6; TY18 and prior, the taxpayer checks box c on Schedule 3, line 54 (TY17, Form 1040, line 54), and writes "Form 8910" . TY19, taxpayers can claim "pass-through" alternative motor vehicle credit on Form 3800, Part III, line 1r. Refer to EC 299. 3.12.2.8.3.38 (01-01-2024) Field 05CVC, Clean Vehicle Credit, Form 8936 Clean Vehicle Credit, Form 8936 Part III, is transcribed in Field 05CVC from Schedule 3, line 6f (TY20 and TY19, input if the taxpayer checks box c on Form 1040, Schedule 3, line 6; TY18, Schedule 3, line 54; TY17, Form 1040, line 54). Refer to EC 298, 299, 302, and 303. 3.12.2.8.3.39 (01-01-2024) Field 05MIC, Mortgage Interest Credit, Form 8396 Mortgage Interest Credit, Form 8396, is transcribed in Field 05MIC from Schedule 3, line 6g (TY20 and TY19, input if the taxpayer checks box c on Schedule 3, line 6; TY18, Schedule 3, line 54; TY17, Form 1040, line 54). Refer to EC 292, 299, and 310. 3.12.2.8.3.40 (01-01-2024) Field 05POC, Previously Owned Clean Vehicles Credit, Form 8936 Previously Owned Clean Vehicles Credit, Form 8936 Part IV, is transcribed from Schedule 3, line 6m. Refer to EC 298, 299, and 310. 3.12.2.8.3.41 (01-01-2024) Field 05OSC, Other Statutory Credits Other Statutory Credits is transcribed in Field 05OSC from Schedule 3, line 6h through 6l. Line 6z is ERS input only and must be added to the field total if present. TY20 and TY19, input if the taxpayer includes this amount on Schedule 3, line 6c (TY18, Schedule 3, line 55; TY17, Form 1040, line 55). Refer to EC 300, 302, 303, and 310. 3.12.2.8.3.42 (01-01-2024) Field 05ONC, Total Other Nonrefundable Credits Total Other Nonrefundable Credits is transcribed in Field 05ONC from Schedule 3, line 7 (TY19 and TY20, located on Schedule 3, line 6; TY18, located on Schedule 3, line 54; TY17, Form 1040, line 54). Refer to EC 299, 300, and 303. 3.12.2.8.3.43 (01-01-2023) Field 05PTC Reconciled Premium Tax Credit Premium Tax Credit is transcribed in Field 05PTC from Schedule 3, line 9 (TY20, located on Schedule 3, line 8; TY19, located on Schedule 3, line 9; TY18, located on Schedule 5, line 70; TY17, Form 1040, line 69). Refer to EC 353 and 354. 3.12.2.8.3.44 (11-27-2020) Field 05EXT, Form 4868 Payment The amount paid with Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, is transcribed in Field 05EXT from Schedule 3, line 10 (TY 20, located on Schedule 3, line 9; TY19, located on line 10, Schedule 3; TY18, located on line 71, Schedule 5; TY17, Form 1040, line 70). Refer to EC 366. 3.12.2.8.3.45 (01-01-2025) Field 05ESS Excess Social Security/RRTA Excess social security tax and tier 1 RRTA is transcribed in Field 05ESS from Schedule 3, line 11 (TY20, located on Schedule 3, line 10; TY19, located on line 11, Schedule 3; TY18, located on line 72, Schedule 5; TY17, Form 1040, line 71). Refer to EC 342. 3.12.2.8.3.46 (01-01-2024) Field 05FUE, Form 4136, Fuel Tax Credit Fuel Tax Credit is transcribed in Field 05FUE from Schedule 3, line 12 (TY20, located on Schedule 3, line 11; TY19, located on line 12, Schedule 3; TY18, located on line 73, Schedule 5; TY17, Form 1040, line 72) Refer to EC 356. 3.12.2.8.3.47 (01-01-2023) Field 05RIC, Form 2439 Regulated Investment Company and Real Estate Investment Trust Credit Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, may provide a taxpayer with a Regulated Investment Company and Real Estate Investment Trust Credit that is transcribed in Field 05RIC from Schedule 3, line 13a (TY20, line 12a; TY19, line 13, Schedule 3; TY18, line 74, Schedule 5; TY17, Form 1040, line 73). The taxpayer is also instructed to attach Copy B of Form 2439 and to include the amount of credit from Form 2439, line 2, on Schedule 3, line 13a (TY20, Schedule 3, line 12 and check box a on Schedule 3, line 12; TY18, Schedule 5, line 74; TY17, Form 1040, line 73). Refer to EC 358. 3.12.2.8.3.48 (01-01-2024) Field 05EYR, Credit for Earlier Year Income Repayment Credit for Earlier Year Income Repayment is transcribed in Field 05EYR from Schedule 3, line 13b. Refer to EC 358. 3.12.2.8.3.49 (01-01-2025) Field 05EPA, Net Elective Payment Election Amount TY24-TY23, net elective payment election amount from Form 3800 is transcribed from Schedule 3, line 13c. Refer to Error Code 358. 3.12.2.8.3.50 (01-01-2024) Field 05OTH, Other Payment or Credit Amount Field 05OTH is numeric only, must be a positive amount, and dollars and cents, is ERS input only and is found on Schedule 3, line 13z (TY23, Schedule 3, lines 13d and/or a write-in on 13z; TY22, Schedule 3, lines 13b, 13f, 13h, and/or a write-in on 13z; TY21, Schedule 3, lines 13b, 13c, 13d, 13f, 13g, 13h, and/or a write-in on 13z; TY20, Schedule 3, line 12c and/or 12d; TY19, Schedule 3, line 13; TY18, Schedule 5, line 74; TY17, Form 1040, line 73) or on prior year Form 1040 is used for a payment or credit amount without a specific field designator. Refer to EC 366. 3.12.2.8.3.51 (01-01-2024) Field 05TYP, Other Payment or Credit Type Code Field 05TYP identifies the payment or credit type code associated with the amount in Field 05OTH, is alphanumeric, and is ERS input only. Refer to EC 366. 3.12.2.8.3.52 (01-01-2024) Field 05OPR, Total Other Payments and Refundable Credits Total Other Payments and Refundable Credits is transcribed in Field 05OPR from Schedule 3, line 14 (TY20, Schedule 3, line 12f; TY19, located on line 13, Schedule 3; TY18, located on line 74, Schedule 5; TY17, Form 1040, line 73 and checks the box to identify the credit). Refer to EC 358. 3.12.2.9 (01-01-2020) Section 06, Direct Deposit Section 06 contains taxpayer information for direct deposit. Refer to EC 137 and 138. Safeguards are in place after error correction to ensure the accuracy of the deposit. If entries in Section 06 do not meet the tests, or if direct deposit is requested on a prior year return, the IRS will issue a paper refund check instead and send a notice CP 53 to the taxpayer to explain why we did not allow the direct deposit. Section 06 must be present for the CP 53 to generate. 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. 3.12.2.9.1 (01-01-2025) Error Record Format Section 06 Section 06 consists of the following fields: Form 1040, Field Name 2024/2023/2022 Field Location Prior Year Field Location 06RTN Routing and Transit Number (RTN) Form 1040, line 35b TY21-TY20 Form 1040, line 35b TY19 Form 1040, line 21b TY18 Form 1040, line 20b TY17 Form 1040, line 76b 06DAN Depositor Account Number (DAN) Form 1040, line 35d TY21-TY20 Form 1040, line 35d TY19 Form 1040, line 21d TY18 Form 1040, line 20d TY17 Form 1040, line 76d 06TDA Type Depositor Account Form 1040, line 35c TY21-TY20 Form 1040, line 35c TY19 Form 1040, line 21c TY18 Form 1040, line 20c TY17 Form 1040, line 76c 3.12.2.9.2 (11-27-2020) Correction Procedures Correct coding and transcription errors and misplaced entries in all displayed fields. If the only entry in Section 06 is a mark in either the Checking or Savings box, enter C in the Clear Field. If the Direct Deposit information section is filled with all X's, DLSEC 06. If it appears that the taxpayer is requesting a direct deposit, don’t DLSEC 06 Verify Field 06DAN was input correctly. Caution: When a Section 06 Priority II Error occurs, it is likely the Depositor Account Number (Field 06DAN) has been incorrectly transcribed. On paper returns, if either or both of the entries have been altered on lines 35b or 35d (TY19, lines 21b or 21d; TY18, lines 20b or 20d; TY17 and prior, lines 76b or 76d, Form 1040), delete the entries in Fields 06RTN and 06DAN. 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. Correction procedures for Section 06 fields follow. 3.12.2.9.2.1 (01-01-2020) Field 06RTN, Routing and Transit Number Routing and Transit Number represents the taxpayer's bank. This field is invalid if it isn't exclusively numeric. Nine digits must be present; blanks aren't valid entries. If fewer than nine digits are present, the computer will generate a zero in each unfilled field. The resulting number isn't the taxpayer's entry and must be deleted as invalid. Verify and correct any transcription errors. Delete the data in Field 06RTN when non-numeric, illegible characters, or fewer than nine digits are present or the routing number has more than nine characters. If the entry has been altered on a paper return, delete the entries in Fields 06RTN and 06DAN. Enter C in the Clear Field when EC 137 displays. 3.12.2.9.2.2 (01-01-2020) Field 06DAN, Depositor Account Number Valid characters are alphanumeric characters and the hyphen. Blank spaces are not allowed within Field 06DAN. Delete the entry in Field 06DAN when any part of the depositor account number is illegible. If the entry has been altered on a paper return, delete the entries in Fields 06RTN and 06DAN. Enter C in the Clear Field when EC 138 displays. 3.12.2.9.2.3 (01-01-2020) Field 06TDA, Type Depositor Account Two alphanumeric characters are valid in Field 06TDA. C: checking account S: savings account Enter C if the checking box is checked, or S if the savings box is checked. 3.12.2.10 (01-01-2020) Section 07, Schedule A Schedule A, Itemized Deductions, is used to list expenses paid during the year that are allowed as a deduction before taxable income is determined on Form 1040. There may be items on Schedule A that are unallowable by law. C&E tax examiners will edit unallowable codes, if necessary. ERS tax examiners are responsible for the code(s) when entering Section 07 to the error record. The unallowable codes are listed in IRM Exhibit 3.12.2-7. 3.12.2.10.1 (01-01-2025) Error Record Format, Section 07 Fields in Section 07 must be positive entries. Section 07 comprises these fields: Schedule A Field Name Form 1040 Field Location 0701 Medical Expense Line 1 0703 Percentage of AGI Taxpayer Line 3 0704 Total Medical Deduction Line 4 0704V Total Medical Deduction Verified ERS input only 0705A State and Local Income or Sales Tax Line 5a 07STI State and Local Income or Sales Tax Code Line 5a checkbox 0705B Real Estate Tax Line 5b 0705C Personal Property Taxes Line 5c 0706 Other Taxes Line 6 0707 Total Tax Deduction Line 7 0708A Financial Home Mortgage Interest Line 8a 0708B Personal Seller Home Mortgage Interest Line 8b 0708C Deductible Points Line 8c 0709 Investment Interest Line 9 0710 Total Interest Deduction Line 10 0711 Cash Contributions Line 11 0712 Other Contributions Line 12 0713 Carryover Contributions Line 13 0714 Total Contributions Line 14 0715 Total Casualty/Theft Loss Line 15 0716 Other Itemized Deductions Line 16 0717 Total Itemized Deductions Line 17 0717V Total Itemized Deductions Verified ERS input only 07IEI Itemized Deduction Election Indicator Line 18 3.12.2.10.2 (01-01-2017) Invalid Condition A Section 07 field is in error if not all numeric. 3.12.2.10.3 (01-01-2017) Correction Procedures Combine related amounts when there is more than one Schedule A attached. Only one Schedule A can be processed per return. Additional correction procedures for Section 07 fields follow. 3.12.2.10.3.1 (01-01-2017) Field 0701, Medical Expense ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Refer to EC 232. 3.12.2.10.3.2 (01-01-2023) Field 0703, Percentage of AGI Taxpayer This amount is transcribed from Schedule A, line 3. Refer to EC 232. 3.12.2.10.3.3 (01-01-2017) Field 0704, Taxpayer's Total Medical Deduction The amount is transcribed from Schedule A, line 4. Refer to EC 232. 3.12.2.10.3.4 (01-01-2017) Field 0704V, Total Medical Verified This field is for ERS input only and is used whenever the computer cannot correctly compute Schedule A, Medical and Dental Expenses (e.g., certain prior year returns). 3.12.2.10.3.5 (01-01-2019) Field 0705A, State and Local Income and Sales Tax This field is transcribed from Schedule A, line 5a (TY17, located on line 5). Refer to EC 236. 3.12.2.10.3.6 (02-08-2021) Field 07STI, State and Local Income or Sales Tax Code State and Local Income or Sales Tax Code Field 07STI indicates when the taxpayer has opted to use the deduction for General Sales Tax (checked box 5a on Schedule A). TY18 and later, Field 07STI indicates the taxpayer has opted to use the deduction for General Sales Tax or State and Local Income Taxes. Refer to EC 236. The valid codes are as follows: 2 - For all tax years, taxpayer marked “general sales tax” checkbox on Schedule A, line 5a (TY17 and prior, checkbox on line 5b) 0 (Zero) or blank - Checkbox(es) not marked TY18 and later, correct Field 07STI as follows: Enter 2 if box 5a (general sales tax) is checked. Enter 0 if box 5a is not checked. TY17 and prior, correct Field 07STI as follows: Enter 2 if box 5b or both boxes are checked. Enter 0 if only box 5a is checked. Delete the entry if neither of the boxes are checked. 3.12.2.10.3.7 (01-01-2019) Field 0705B, Real Estate Taxes This field is transcribed from Schedule A, line 5b (TY17, located on line 6). Refer to EC 236. 3.12.2.10.3.8 (01-01-2019) Field 0705C, Personal Property Taxes This field is transcribed from Schedule A, line 5c (TY17, located on line 7). Refer to EC 236. 3.12.2.10.3.9 (01-01-2019) Field 0706, Other Taxes This field is transcribed from Schedule A, line 6 (TY17, located on line 8). Refer to EC 236. 3.12.2.10.3.10 (01-01-2019) Field 0707, Total Tax Deduction The field is transcribed from Schedule A, line 7 (TY17, located on line 9). Refer to EC 236. 3.12.2.10.3.11 (01-01-2019) Field 0708A, Home Mortgage Interest and Points This field is transcribed from Schedule A, line 8a (TY17, located on line 10) and represents home mortgage interest paid to financial institutions. Refer to EC 238. 3.12.2.10.3.12 (01-01-2019) Field 0708B, Home Mortgage Interest, Not on Form 1098 This field is transcribed from Schedule A, line 8b (TY17, located on line 11) and represents mortgage interest paid to individuals. Refer to EC 238. 3.12.2.10.3.13 (01-01-2019) Field 0708C, Deductible Points This field is transcribed from Schedule A, line 8c (TY17, located on line 12) and represents deductible points from the purchase of a home. Refer to EC 238. 3.12.2.10.3.14 (01-01-2019) Field 0709, Investment Interest This field is transcribed from Schedule A, line 9 (TY17, located on line 14) and represents Investment Interest paid. Refer to EC 238. 3.12.2.10.3.15 (01-01-2019) Field 0710, Total Interest Deduction This field is transcribed from Schedule A, line 10 (TY17, located on line 15). Refer to EC 238. 3.12.2.10.3.16 (01-01-2019) Field 0711, Cash Contributions The field is transcribed from Schedule A, line 11 (TY17, located on line 16) and represents cash contributions. Refer to EC 240. 3.12.2.10.3.17 (01-01-2019) Fields 0712, Other Contributions, Not By Check or Cash This field is transcribed from Schedule A, line 12 (TY17, located on line 17) and is for contributions not by check or cash. Refer to EC 240. Form 8283, Noncash Charitable Contributions, is required for any deduction ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. 3.12.2.10.3.18 (01-01-2019) Field 0713, Carryover Contributions This field is transcribed from Schedule A, line 13 (TY17, located on line 18). Refer to EC 240. 3.12.2.10.3.19 (01-01-2019) Field 0714, Total Contributions This field is transcribed from Schedule A, line 14 (TY17, located on line 19). Refer to EC 240. 3.12.2.10.3.20 (01-01-2019) Field 0715, Total Casualty or Theft Loss This field is transcribed from Schedule A, line 15 (TY17, located on line 20). Refer to EC 242 3.12.2.10.3.21 (01-01-2020) Field 0716, Other Itemized Deductions TY18 and later, Field 0716 is transcribed from Schedule A, line 16. TY17, Field 0716 is for "gambling losses" on Schedule A, line 28, and cannot be more than gambling winnings listed on page 1 of Form 1040. Refer to EC 246. 3.12.2.10.3.22 (01-01-2025) Field 0717, Total Itemized Deductions This field is transcribed from Schedule A, line 17 (TY17, located on line 29). This field is the total of Fields 0704, 0707, 0710, 0714, 0715, 0716, and 07OTG. Refer to EC 246. TY13 - TY17, total itemized deductions must be limited when the adjusted gross income exceeds the threshold for the filing status. See EC 246, Prior Year. 3.12.2.10.3.23 (01-01-2019) Field 0717V, Total Itemized Deductions Verified This field is for ERS input only. 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 0717V. TY17 - TY13, total itemized deductions must be limited when the adjusted gross income exceeds the threshold for the filing status. See EC 246, Prior Year. When the taxpayer has included amounts on line 16 of Schedule A that are other than gambling losses, and/or casualty and theft losses, see IRM 3.12.3.23.7.5, and if prior year, see IRM 3.12.3.23.7.8. 3.12.2.10.3.24 (01-01-2025) Field 07IEI, Itemized Election Indicator This field is transcribed from Schedule A, line 18 (TY17, located on line 30). The valid values for this field are 0 (zero) and 1. Enter 1 in Field 07IEI when the taxpayer has checked the box on Schedule A, line 18 (TY17, line 30) and used an amount on Form 1040, line 9 (TY18, line 8; TY17, line 40) that is less than the standard deduction for the filing status, but greater than zero. Refer to EC 250. 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 Schedule A, line 18 (TY17, line 30). If Form 4563 (Exclusion of Income For Bona Fide Residents in American Samoa) or Form 2555 (Foreign Earned Income) is present, SSPND 651 (AUSPC only, SSPND 610). Refer to IRM 3.12.2.3.7, International Returns. TY04 and prior, taxpayers will write "IE" to the left of the entry for Itemized Deduction or Standard Deduction on Form 1040 when electing this option. 3.12.2.10.3.25 (01-01-2020) Unallowables Unallowable Codes 33 through 46 affect itemized deductions. See Exhibit 3.12.2-7. 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. 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 codes may be used.) Or, if applicable, follow local procedures for Unallowable Code 98. 3.12.2.11 (01-01-2017) Section 08, Schedule B 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. 3.12.2.11.1 (01-01-2023) Error Record Format Section 08 Section 08 consists of the following fields: Schedule B Field Name Form 1040 Field Location 08INT Schedule B Interest Line 2 0803 Excludable Savings Bond Interest Line 3 08DIV Schedule B Dividends Line 6 08FAQ Foreign Accounts Indicator Line 7a, question 1 08FIN FINCEN Required Code Line 7a, question 2 All money amount entries in this section must be positive. 3.12.2.11.2 (01-01-2020) Invalid Conditions Fields in Section 08 will display in error if not all numeric. 3.12.2.11.3 (01-01-2017) Correction Procedures Correction procedures for Section 08 fields follow. 3.12.2.11.3.1 (01-01-2017) Field 08INT, Schedule B Gross Interest 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" 3.12.2.11.3.2 (01-01-2024) Field 0803, Excludable Savings Bond Interest This amount represents excluded interest from Series EE and Series I bonds, issued by the Bureau of Public Debt after 1989. This interest is excludable for education expenses incurred by the taxpayer for self, spouse, or dependent. Refer to EC 160. Taxpayers include the interest from the Series EE bonds in line 2 before deducting the excludable amount on line 3. When there is an inconsistency or Form 8815, Exclusion of Interest from Series EE and I U.S. Savings Bonds Issued After 1989, is not attached, SSPND 211. 3.12.2.11.3.3 (01-01-2018) Field 08DIV, Schedule B Gross Dividends The gross dividend amount in Field 08DIV of Schedule B, Part II, indicates any adjustment to dividends for "Nominee Distribution" . 3.12.2.11.3.4 (01-01-2025) Field 08FAQ, Foreign Accounts Code This field is coded from the answer to the first question at line 7a of Schedule B: "At any time during 20XX, did you have a financial interest in or signature authority over a financial account..." The valid codes are 0, 1, 2, and 3. 0: default value 1: the Yes box is checked 2: the No box is checked, or both boxes are checked 3: neither box is checked, entered only by ERS 3.12.2.11.3.5 (01-01-2025) Field 08FIN, FINCEN Required Code This field is coded from the answer to the second question at line 7a of Schedule B: "If Yes, are you required to file FinCEN Form 114..." The valid codes are 0, 1, and 2. 0: neither box is checked (default value) 1: the Yes box is checked 2: the No box is checked, or both boxes are checked 3.12.2.12 (01-01-2023) Sections 09, 10, and 11, Schedule C 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. TY18 and prior, 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. Three Schedules C may be filed with a return. The first Schedule C displays as Section 09, the second as Section 10 and the third as Section 11. Note: For the remainder of this text, Schedule C will be referred to as Section 09; however, all correction procedures will apply equally to Sections 09, 10 and 11. 3.12.2.12.1 (01-01-2024) Error Record Format of Section 09, 10, and 11 Section 09 comprises the fields in the table below. Schedule C Field Name Field Location Schedule C 09PBD Principal Business Item A 09SSN Social Security Number Upper Right Hand Corner 09NCS NAICS Code Item B 09BNM Business Name Item C 09EIN Employer Identification Number Item D 09AMC Accounting Method Code Item F 09FRS First Time Code Item H 09FRQ Schedule C Form 1099 Required Code Item I 09FFD Schedule C Form 1099 Filed Code Item J 09STI Statutory Employee Indicator ERS input only 0901 Gross Receipts 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 0924B Meals and Entertainment Line 24b 0925 Utilities Line 25 0926 Schedule C Wages Line 26 0927A Other Expenses Line 27a 0927B Energy Efficient Building Deduction Amount Line 27b 09EXP Total Expenses Line 28 0930 Expenses for Business Use of Home Line 30 09AR At Risk Code Line 32a/32b 0935 Inventory Beginning Year Line 35 0941 Inventory End Year Line 41 All fields must be positive with the exception of Field 0906, which can be either positive or negative. 3.12.2.12.2 (01-01-2017) Invalid Conditions Fields in Section 09 will display as invalid if not all alpha, numeric, or blank. Additional invalid conditions for specific fields in Section 09 follow. 3.12.2.12.3 (01-01-2023) Correction Procedures When the taxpayer has filed more than three Schedules C, consolidate according to the following priority. Priority Condition 1 Farming 2 Fisheries 3 Not farming or fisheries 4 Gains only or losses only, whenever possible 5 Schedules with lesser amounts of gross receipts, on line 1 Schedule C or line 1d of Schedule C for TY11 Caution: Do not combine any Schedules C that have been identified as "Statutory Employee" with "non-statutory" Schedules C. Note: Do not combine primary taxpayer Schedule C data with secondary taxpayer Schedule C data. Statutory Employees, who are not subject to Self-Employment Tax, receive a Form W-2 with the box checked for Statutory Employee. For TY12 and later, these taxpayers are instructed to identify themselves as Statutory employees by checking the box on line 1, Schedule C. Note: Statutory Employees are individuals in specified occupational groups who are not common law employees. These include: Industrial homeworkers, full-time life insurance salespersons, certain agent or commission drivers (engaged in the distribution of meat products, vegetable products, fruit products, bakery products, beverages (other than milk), or laundry or dry cleaning services) and traveling or city salespersons. Adjust all fields following the taxpayer's intent when the taxpayer is dividing the income under Community Property rules and the FSC is not 1, 3, or 4. Refer to EC 260 for instructions when the FSC is 1, 3, 4, or 7. Additional correction procedures for Section 09 fields follow. 3.12.2.12.3.1 (01-01-2017) Field 09PBD, Principal Business Description Principal Business Description is transcribed from Schedule C, Item A. Principal Business Description will be invalid if not all alpha or blank. 3.12.2.12.3.2 (01-01-2017) Field 09SSN, Social Security Number Social security number is transcribed from Schedule C, SSN box. Field 09SSN will be invalid if other than nine numeric characters. 3.12.2.12.3.3 (01-01-2017) Field 09NCS, NAICS Code NAICS Code is transcribed from Schedule C, Item B. NAICS Code field will be invalid if other than six numeric characters or blanks. When correcting this field use the following guidelines: Enter the code entered by the taxpayer on Schedule C. Enter the first NAICS code, if more than one code is present. Delete the entry when more than six numeric entries are in the field. If fewer than six numbers are present, enter leading zeros until six numbers are present. Add two zeros to the entry 1234, for example, to create 001234. 3.12.2.12.3.4 (01-01-2017) Field 09BNM, Business Name Business Name is transcribed from Schedule C, Item C. Business Name is invalid if other than 20 alphanumeric characters. 3.12.2.12.3.5 (01-01-2017) Field 09EIN, Employer Identification Number Employer Identification Number is transcribed from Schedule C, Item D. Employer Identification Number (EIN) will be invalid if other than 9 numeric characters. Enter the EIN, entered by the taxpayer on Schedule C, when correcting or adding this field. The following exceptions will apply: Delete the entry if other than nine numeric characters are present. Do not enter a number that is equal to the Primary or Secondary SSN. 3.12.2.12.3.6 (01-01-2017) Field 09AMC, Accounting Method Code Accounting Method Code is transcribed from Schedule C, Item F. Accounting Method Code Field will be invalid if other than one of the following: Blank (none of the boxes or multiple boxes are checked) 1 (Cash box is checked) 2 (Accrual box is checked) 3 (Other box is checked) 3.12.2.12.3.7 (01-01-2017) Field 09FRS, First-Time Code First Time Code is transcribed from Schedule C, Item H. First Time Code Field will be invalid if other than the following: Blank (box is not checked) 1 (box is checked) 3.12.2.12.3.8 (01-01-2024) Field 09STI, Statutory Employee Indicator This ERS input only field is transcribed from Schedule C when the box is checked on line 1. The field is one space long. Valid values: blank: box is not checked 1: box is checked 3.12.2.12.3.9 (01-01-2023) Field 09FRQ, Schedule C Form 1099 Required Code This field is transcribed from Item I of Schedule C. The field is one space long, and only numeric values are valid in this field. Valid values: 0: neither box is checked 1: box Yes is checked 2: box No is checked, or both boxes are checked 3.12.2.12.3.10 (01-01-2023) Field 09FFD, Schedule C Form 1099 Filed Code This field is transcribed from item J of Schedule C. The field is one space long, and only numeric values are valid in this field. Valid values: 0: neither box is checked 1: box Yes is checked 2: box No is checked, or both boxes are checked 3.12.2.12.3.11 (01-01-2023) Field 0901, Gross Receipts Amount This field is transcribed from line 1 of Schedule C. The field can contain up to eleven numeric characters only. 3.12.2.12.3.12 (01-01-2017) Field 0902 through 0906 Each field is transcribed from its respective line in Schedule C. Each field can contain eleven numeric characters only. 3.12.2.12.3.13 (01-01-2024) Field 0909 through 0927B These fields are transcribed from Part II, Schedule C. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ as shown on the return. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ as shown on the return. Line 26 represents the taxpayer's total salary and wages paid or incurred for the tax year. It does not include salaries and wages deducted elsewhere on the return or amounts paid to the taxpayer filing this Schedule C. The taxpayer will reduce this deduction by the current year credits claimed on Forms 5884, 8844, and 8845. If adding Section 09 from an attachment, GTSEC 09, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Each field can contain eleven numeric characters only. 3.12.2.12.3.14 (01-01-2023) Field 09EXP, Total Expenses This field is transcribed from line 28, Schedule C. 3.12.2.12.3.15 (01-01-2017) Field 0930, Expenses for Business Use of Home This field is transcribed from line 30, Schedule C. The taxpayer transfers the amount from Form 8829, line 35. For TY13 and later, the taxpayer may use the Simplified Method in computing Expense for Business use of the Home. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See Error Code 202. 3.12.2.12.3.16 (01-01-2023) Field 09AR, At-Risk Code The At-Risk Code is transcribed from checkboxes on line 32a and/or 32b of Schedule C. Invalid Condition - This field will be invalid if other than 1, 2, 3, or blank. Correction Procedures - When Schedule C is a loss, enter Field 09AR as follows: If... Then... A] The taxpayer checked only box 32a (all is at risk), Enter 1 in Field 09AR. B] The taxpayer checked box 32b or both boxes 32a and 32b (some is not at risk), Enter 2 in Field 09AR. C] The taxpayer did not check either box 32a or 32b, Enter 3 in Field 09AR. D] Multiple Schedules C were combined, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Enter 3 in Field 09AR. E] Schedule C is for TY85 or before, Enter 3 in Field 09AR. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Refer to EC 070. 3.12.2.12.3.17 (01-03-2017) Fields 0935 and 0941 - Beginning and Ending Inventory These fields are transcribed from Part III of Schedule C. Each field can contain up to eleven numeric characters only. 3.12.2.13 (01-01-2025) Section 12, Schedule D and Form 8949 Schedule D, Capital Gains and Losses, is used to report capital gains and losses, which includes the following: Capital Gain Distributions not reported directly on Form 1040, line 7 (TY19, Form 1040, line 6; TY18, Schedule 1, line 13; TY17, Form 1040, line 13). The sale or exchange of a capital asset not reported on another form or schedule. Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit. Non-business bad debts. Refer to EC 204. TY11 and later, taxpayers use Form 8949, Sales and Other Dispositions of Capital Assets, to list short-term and long-term transactions. The totals on line 2, columns (e), (g), and (h), [TY11, columns (e), (f), and (g)] are transferred to the appropriate lines in Part 1 or 2 of Schedule D. TY18 and later, when Form 8949 is coded with a Z in column (f) of Part I and/or II, more information will be transcribed regarding investments in Qualified Opportunity Funds (QOF) in Fields 12ZSE through 12ZLF. TY19 and later, when Form 8949 is coded with a Y in column (f) of Part I and/or II, more information will be transcribed regarding investments in Qualified Opportunity Funds (QOF) in Fields 12YSE through 12YLF. Note: For TY10 and before, taxpayers used Schedule D-1 to list more transactions. The combined totals of all Schedules D-1 are brought forward to lines 2 and 9 of Schedule D. Part I of Schedule D is used to report short-term capital gains and losses from assets held one year or less as follows: Taxpayers complete a separate Form 8949 for each type of transaction and check box A, B, or C, Part l, to identify the type. Taxpayers report their short-term gains or losses in column (h). For TY10 and before, taxpayers may complete Schedule D-1 as a continuation sheet for short-term gains or losses reported in Part I (line 2). Part II of Schedule D is used to report long-term capital gains and losses from assets held more than one year as follows: Taxpayers complete a separate Form 8949 for each type of transaction and check box D, E, or F, Part ll, to identify the type. Taxpayers report their long-term gains or losses in column (h). For TY10 and before, taxpayers may complete Schedule D-1 as a continuation sheet for long-term gains reported in Part II (line 9) Part III of Schedule D is the total of Parts I and II and is used to figure the amount for Form 1040, line 7 (TY19, Form 1040, line 6; TY18, Schedule 1, line 13; TY17, Form 1040, line 13). It is also used to determine whether the computation using Capital Gains Tax Rates is applicable to the taxpayer. Part III directs the taxpayer to the Schedule D Tax Worksheet in the instructions to figure the tax on taxable income that is reported on line 15, Form 1040 (TY19, line 12a; TY18, line 11a; TY17, line 44). 3.12.2.13.1 (01-01-2023) Error Record Format Section 12 Section 12 consists of the following fields: Schedule D Field Name Field Location 12QOF Qualified Opportunity Fund Checkbox TY19 Schedule D checkbox above Part I 121AD Short-Term Basis No Adjustments Sales Amount Schedule D line 1a, column (d) 121AE Short-Term Basis No Adjustments Cost Amount Schedule D line 1a, column (e) 121BD Short-Term Basis Transaction Sales Price Schedule D line 1b, column (d) 121BE Short-Term Basis Transactions Cost Schedule D line 1b, column (e) 121BG Short-Term Basis Adjustments Amount Schedule D line 1b, column (g) 122D Short-Term No Basis Transactions Sales Schedule D line 2, column (d) 122E Short-Term No Basis Transaction Cost Amount Schedule D line 2, column (e) 122G Short-Term No Basis Adjustments Amount Schedule D line 2, column (g) 123D Short-Term No 1099B Transactions Sales Schedule D line 3, column (d) 123E Short-Term No 1099B Transaction Cost Amount Schedule D line 3, column (e) 123G Short-Term No 1099B Adjustments Amount Schedule D line 3, column (g) 1205 Short Term Schedule K-1 Gain Loss Amount Schedule D line 5, column (h) 1207 Net Short-Term Gain or Loss Schedule D line 7 128AD Long-Term Basis No Adjustments Sales Amount Schedule D line 8a, column (d) 128AE Long-Term Basis No Adjustments Cost Amount Schedule D line 8a, column (e) 128BD Long-Term Basis Transactions Sales Schedule D line 8b, column (d) 128BE Long-Term Basis Transactions Cost Schedule D line 8b, column (e) 128BG Long-Term Basis Adjustments Amount Schedule D line 8b, column (g) 129D Long-Term No 1099B Transactions Sales Schedule D line 9, column (d) 129E Long-Term No Basis Transaction Cost Amount Schedule D line 9, column (e) 129G Long-Term No Basis Adjustments Amount Schedule D line 9, column (g) 1210D Long-Term No 1099B Transaction Sales Amount Schedule D line 10, column (d) 1210E Long-Term No 1099B Transaction Cost Amount Schedule D, line 10, column (e) 1210G Long-Term No 1099B Adjustments Amount Schedule D line 10, column (g) 1212 Long-Term Schedule K-1 Gain Loss Amount Schedule D line 12 1213 Capital Gain Distribution Schedule D line 13 1215 Net Long-Term Gain or Loss Schedule D line 15 1218 28 percent Rate Gain or Loss Schedule D line 18 1219 Unrecaptured Section 1250 Gain Schedule D line 19 12ZSE Form 8949 Z Code QOF Short Term Investment EIN Form 8949, Part 1, column (a) 12ZSD Form 8949 Z Code QOF Short Term Investment Date Acquired Form 8949, Part I, column (b) 12ZSA Form 8949 Z Code QOF Short Term Investment Adjustment Amount Form 8949, Part I, column (g) 12ZSF Form 8949 Z Code QOF Short Term Investment Additional Indicator Form 8949, Part I, edited to the right of column (h) 12YSE Form 8949 Y Code QOF Short Term Investment EIN Form 8949, Part I, column (a) 12YSD Form 8949 Y Code QOF Short Term Investment Date Sold or Disposed Form 8949, Part I, column (c) 12YSA Form 8949 Y Code QOF Short Term Investment Recaptured Deferral Form 8949, Part 1, column (g) 12YSF Form 8949 Y Code QOF Short Term Investment Additional Indicator Form 8949, Part 1, edited to right of column of column (h) 12ZLE Form 8949 Z Code QOF Long Term Investment EIN Form 8949, Part II, column (a) 12ZLD Form 8949 Z Code QOF Long Term Investment Date Acquired Form 8949, Part II, column (b) 12ZLA Form 8949 Z Code QOF Long Term Investment Adjustment Amount Form 8949, Part II, column (g) 12ZLF Form 8949 Z Code QOF Long Term Investment Additional Indicator Form 8949, Part II, edited to the right of column (h) 12YLE Form 8949 Y Code QOF Long Term Investment EIN Form 8949, Part II, column (a) 12YLD Form 8949 Y Code QOF Long Term Investment Date Sold or Disposed Form 8949, Part II, column (c) 12YLA Form 8949 Y Code QOF Long Term Investment Recapture Deferral Form 8949, Part II, column (g) 12YLF Form 8949 Y Code QOF Long Term Investment Additional Indicator Form 8949, Part II, edited to the right of column (h) 12DV Schedule D Profit/Loss Verified ERS input only Fields 1207, 1215, and 12DV may be either positive or negative. All other fields must be positive and can have up to eleven numeric characters only. 3.12.2.13.2 (01-01-2017) Invalid Condition Section 12 fields will display as invalid if not all numeric. 3.12.2.13.3 (11-27-2020) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Code and Edit will edit RPC T when all of the following conditions are met: A positive amount of more than $1 is present on Form 1040, line 7 (TY19, Form 1040, line 6; TY18, Schedule 1, line 13; TY17, Form 1040, line 13). Schedule D is not present. The box on Form 1040, line 7 (TY19, Form 1040, line 6; TY18, Schedule 1, line 13; TY17, Form 1040, line 13) is checked. Enter T in Field 01RPC when not edited by Code and Edit. 3.12.2.13.3.1 (01-01-2024) Field 12QOF, Qualified Opportunity Fund Checkbox TY24 - TY19, Field 12QOF will be transcribed from the checkboxes on Schedule D, above Part I. This field is a one-position numeric field Valid values: 0: neither box is checked 1: box Yes is checked 2: box No is checked 3: both boxes are checked If Field 12QOF displays as a field error on a TY18 or prior return, enter 0. 3.12.2.13.3.2 (01-01-2017) Fields 121AD, 121AE, 121BD, 121BE, 121BG, 122D, 122E, 122G, 123D, 123E, 123G, 1205 and 1207 These fields are transcribed from Part I, Schedule D. 3.12.2.13.3.3 (01-01-2018) Fields 128AD, 128AE, 128BD, 128BE, 128BG, 129D, 129E, 129G, 1210D, 1210E, 1210G, 1212, 1213 and 1215 These fields are transcribed from Part II, Schedule D. 3.12.2.13.3.4 (01-01-2017) Fields 1218 and 1219 These fields are transcribed from Part III, Schedule D. 3.12.2.13.3.5 (03-01-2021) Fields 12ZSE, 12ZSD, 12ZSA, 12ZSF, 12ZLE, 12ZLD, 12ZLA, and 12ZLF TY18 and later, these fields are transcribed from Form 8949 when code Z is in column (f) of Form 8949, Part I or II, for certain Qualified Opportunity Fund (QOF) investments. Fields 12ZSE and 12ZLE will display as invalid if other than nine digits. If a field error displays and transcription is correct, overlay with nine zeroes to delete the entry. Fields 12ZSD and 12ZLD will display as invalid if other than eight numeric digits. If a field error displays, verify transcription: If a valid date is not present in column (b) on Form 8949, overlay with eight zeroes to delete the entry. If a valid date is present in column (b) on Form 8949, enter the date in YYYYMMDD format. Fields 12ZSA and 12ZLA are eleven digit numeric positive-only fields. If other than numeric digits in column (g) of Form 8949, delete the entry. Fields 12ZSF and 12ZLF will display as invalid if other than 1 or 0. If more QOF investment(s) are indicated on Form 8949, enter 1; otherwise, enter 0. 3.12.2.13.3.6 (03-01-2021) Fields 12YSE, 12YSD, 12YSA, 12YSF, 12YLE, 12YLD, 12YLA, 12YLF TY19 and later, these fields are transcribed from Form 8949 when code Y is in column f of Form 8949, Part I or II, for certain Qualified Opportunity Fund (QOF) investments. Fields 12YSE and 12YLE will display as invalid if other than nine digits. If a field error displays and transcription is correct, overlay with nine zeroes to delete the entry. Fields 12YSD and 12YLD will display as invalid if other than eight numeric digits. If a field error displays, verify transcription: If a valid date is not present in column (b) on Form 8949, overlay with eight zeroes to delete the entry. If a valid date is present in column (b) on Form 8949, enter the date in YYYYMMDD format. . Fields 12YSA and 12YLA are eleven digit numeric positive-only fields. If other than numeric digits in column (g) of Form 8949, delete the entry. Fields 12YSF and 12YLF will display as invalid if other than 1 or 0. If more QOF investment(s) are indicated on Form 8949, enter 1; otherwise, enter 0 3.12.2.13.3.7 (01-01-2017) Field 12DV, Schedule D Profit/Loss Verified This field is for ERS input only. 3.12.2.14 (01-01-2023) Section 13, Schedule E Schedule E, Supplemental Income and Loss, is used to report income/loss from Rents and Royalties, Part I Partnership and S Corporations, Part II Estates and Trusts, Part III Real Estate Mortgage Investment Conduits, Part IV Summary (Farm Rental), Part V Refer to EC 206. The passive activity loss rules may limit the amount of losses the taxpayer can deduct in Parts I, II, and III, and on line 40 of Schedule E. A passive activity is any business activity in which the taxpayer did not materially participate, or any rental activity, regardless of material participation, except for material participation by a real estate professional. 3.12.2.14.1 (01-01-2023) Error Record Format, Section 13 Section 13 consists of the following fields: Schedule E Field Name Field Location 13FRQ Schedule E Form 1099 Required Code Item A 13FFD Schedule E Form 1099 Filed Code Item B 1314A Repairs Amount, column A Line 14, column A 1314B Repairs Amount, column B Line 14, column B 1314C Repairs Amount, column C Line 14, column C 1323A Total Rental Payments Amount Line 23a 1323B Total Royalty Payments Amount Line 23b 1323C Total Mortgage Interest for All Properties Amount Line 23c 1323D Total Depreciation All Properties Amount Line 23d 1323E Total Expenses All Properties Amount Line 23e 1324 Rent/Royalty Income Line 24 1325 Rent/Royalty Loss Line 25 1327 Passive Income Indicator Line 27 1329H Partnership/S Corporation Passive Income Line 29a, column (h) TY17, line 29a, column (g) 1329K Partnership/S Corporation Nonpassive Income Line 29a, column (k) TY17, line 29a, column (j) 13PIG Partnership/S Corporation Passive Loss Line 29b, column (g) TY17, line 29b, column (f) 1329I Partnership/S Corporation Nonpassive Loss Line 29b, column (i) TY17 line 29b, column (h) 1330 Partnership/S Corporation Income Line 30 1331 Partnership/S Corporation Loss Line 31 1334D Estate and Trust Passive Income Line 34a, column (d) 13PET Estate and Trust Passive Loss Line 34b, column (c) 1335 Estate and Trust Income Line 35 1336 Estate and Trust Loss Line 36 13ES Schedule K-1 ES Payment Indicator Dotted portion of line 37 1339 Real Estate Mortgage Investment Conduits (REMIC) Line 39 1340 Farm Rental Income/Loss Line 40 1342 Farm and Fishing Income Line 42 1343 Real Estate Professionals Net Income or Loss Line 43 Fields 1339 and 1340 may be either positive or negative. All other fields must be entered as positive. All money amount fields are up to eleven numeric characters long. 3.12.2.14.2 (01-01-2020) Invalid Conditions Fields in Section 13 will display as invalid if not all numeric. Additional invalid conditions are also given for Fields 1327 and 13ES. 3.12.2.14.3 (01-01-2017) Correction Procedures Correction procedures for Section 13 fields follow. 3.12.2.14.3.1 (01-01-2025) Field 13FRQ, Schedule E Form 1099 Required Code This field is transcribed from Item A of Schedule E. The field is one space long, and only the numeric value 0, 1, and 2 are valid. Valid values: 0: neither box is checked. 1: Yes box is checked. 2: No box is checked, or both boxes are checked. 3.12.2.14.3.2 (01-01-2025) Field 13FFD, Schedule E Form 1099 Filed Code This field is transcribed from Item B of Schedule E. This field will be invalid if other than 0 (zero), 1, or 2. Correct Field 13FFD as follows: 0 (zero) - neither box is checked. 1 - Yes box is checked. 2 - No box is checked, or both boxes are checked. 3.12.2.14.3.3 (01-01-2017) Fields 1314A, 1314B, and 1314C, Repairs Field 1314A, 1314B, and 1314C are transcribed from their respective column on line 14 of Schedule E. 3.12.2.14.3.4 (01-01-2017) Fields 1323A to 1323E Field 1323A through 1323E are transcribed from their respective column on line 23 of Schedule E. 3.12.2.14.3.5 (01-01-2017) Field 1324, Income from Rental Real Estate and Royalties Field 1324 is transcribed from line 24 of Schedule E. 3.12.2.14.3.6 (01-01-2017) Field 1325, Loss from Rental Real Estate and Royalties Field 1325 is transcribed from line 25 of Schedule E. 3.12.2.14.3.7 (01-01-2017) Field 1327 Passive Income Indicator This field is transcribed from line 27, Schedule E. This field will be invalid if other than 0,1, or 2. Determine the correct code based on the taxpayer's answer to the question on line 27. Take the following action: If... Then... A] The taxpayer checked the Yes box, Enter 1 in Field 1327. B] The taxpayer checked the No box, Enter 2 in Field 1327. C] The taxpayer checked both boxes, Enter 1 in Field 1327. D] The taxpayer did not check either box, Enter 0 in Field 1327. 3.12.2.14.3.8 (01-01-2019) Field 1329H, Partnership/S Corporation Passive Income This field is transcribed from line 29a, column (h), Schedule E [TY17 line 29a, column (g), Schedule E]. 3.12.2.14.3.9 (01-01-2019) Field 1329K, Partnership/S Corporation Nonpassive Income This field is transcribed from line 29a, column (k), Schedule E [TY17 line 29a column (j), Schedule E]. 3.12.2.14.3.10 (01-01-2019) Field 13PIG, Partnership/S Corporation Passive Loss This field is transcribed from line 29b, column (g), Schedule E [TY17 line 29b, column (f), Schedule E]. 3.12.2.14.3.11 (01-01-2018) Field 1329I, Partnership/S Corporation Nonpassive Loss This field is transcribed from line 29b, column (i), Schedule E [TY17 line 29b, column (h), Schedule E]. 3.12.2.14.3.12 (01-01-2017) Field 1330, Partnership/S Corporation Income This field is transcribed from line 30, Schedule E. 3.12.2.14.3.13 (01-01-2017) Field 1331, Partnership/S Corporation Loss This field is transcribed from line 31, Schedule E. 3.12.2.14.3.14 (01-01-2017) Field 1334D, Estate/Trust Passive Income The field is transcribed from line 34a column (d), Schedule E. 3.12.2.14.3.15 (01-01-2017) Field 13PET, Passive Estate and Trust Loss The field is transcribed from line 34b, column (c), Schedule E. 3.12.2.14.3.16 (01-01-2017) Field 1335, Estate/Trust Income The field is transcribed from line 35, Schedule E. 3.12.2.14.3.17 (01-01-2017) Field 1336, Estate/Trust Loss This field is transcribed from line 36, Schedule E. 3.12.2.14.3.18 (01-01-2017) Field 13ES, Schedule K-1 ES Payment This field is transcribed from the dotted portion of line 37, Schedule E. This field will be invalid if other than blank or 1. Check the dotted portion of line 37, and code Field 13ES as indicated in the following table: If... Then... A] The taxpayer Indicates "ES Payment claimed" , Enter 1 in Field 13ES. B] No indication is present, Delete any entry in Field 13ES. 3.12.2.14.3.19 (01-01-2023) Field 1339, Real Estate Mortgage Investment Conduits (REMIC) This field is transcribed from line 39, Schedule E. 3.12.2.14.3.20 (01-01-2017) Field 1340, Farm Rental Income or Loss This field is transcribed from line 40, Schedule E. 3.12.2.14.3.21 (01-01-2017) Field 1342, Farm and Fishing Income This field is transcribed from line 42, Schedule E. 3.12.2.14.3.22 (01-01-2017) Field 1343, Real Estate Professionals Net Income or Loss This field is transcribed from line 43, Schedule E. 3.12.2.15 (01-01-2017) Sections 14 and 15, Schedule F Schedule F, Profit or Loss From Farming, is used to report farm income/expenses. Refer to EC 208. Two Schedules F may be filed with a return. The first Schedule F displays as Section 14 and the second as Section 15. Note: For the remainder of this text, Schedule F will be referred to as Section 14; however, all correction procedures will apply equally to Sections 14 and 15. If the taxpayer files more than two Schedules F, Code and Edit will merge the schedules and adjust all transcription fields according to the accounting method used. The taxpayer may choose either the cash or accrual accounting method to report farm income. Taxpayers are instructed to report gross income for both cash and accrual on line 9. Code and Edit is instructed to "X" line 9 when the taxpayer is using the accrual method. Fields 1401B through 1409 are used for the cash method. Fields 1438A through 1450 are used for the accrual method. 3.12.2.15.1 (01-01-2023) Error Record Format Sections 14 and 15 Section 14 consists of the following fields: Schedule F Field Name Field Location 14NCS NAICS Code Item B 14EIN Employer Identification Number Item D 14FRQ Schedule F Form 1099 Required Code Item F 14FFD Schedule F Form 1099 Filed Code Item G 1401B Cost of Purchased Items, Cash Line 1b 1402 Products Raised Sales Line 2 1403A Gross Cooperative Distributions Cash Line 3a 1403B Taxable Cooperative Distributions Cash Line 3b 1404A Gross Agricultural Program Payments Cash Line 4a 1404B Taxable Agricultural Program Payments Cash Line 4b 1405B CCC Loans Forfeited Cash Line 5b 1406A Gross Crop Insurance Cash Amount Line 6a 1406B Taxable Crop Insurance Amount Line 6b 1407 Custom Hire Cash Line 7 1409 Gross Income (Cash) Line 9 1413 Machine Hire Line 13 1419 Gas, Fuel, and Oil Deduction Line 19 1421A Mortgage Interest Line 21a 1425 Schedule F Repairs Maintenance Line 25 1428 Supplies Line 28 1433 Total Farm Expenses Line 33 14AR At Risk Code Line 36a/36b 1438A Gross Cooperative Distributions Accrual Line 38a 1438B Taxable Cooperative Distributions Accrual Line 38b 1439A Gross Agricultural Program Payments Accrual Line 39a 1440B CCC Loans Forfeited Accrual Line 40b 1444 Total Income Accrual Line 44 1450 Gross Income (Accrual) Line 50 Field 1409 and 1450 may be either positive or negative. All other fields must be positive. 3.12.2.15.2 (01-01-2020) Invalid Conditions Fields in Section 14 will display as invalid if not all numeric. Additional invalid conditions are given for Fields 14NCS and 14EIN. 3.12.2.15.3 (01-01-2017) Correction Procedures Additional correction procedures for Section 14 fields follow. 3.12.2.15.3.1 (01-01-2023) Field 14NCS, North American Industry Classification System (NAICS) Code The NAICS Code is transcribed from Item B of Schedule F. The NAICS Code Field will be invalid if other than six numeric characters or blanks. When correcting this field, use the following guidelines: Enter the code listed on Schedule F by the taxpayer. Enter the first NAICS code, if more than one code present. Delete the entry when more than six numeric entries in the field on the return. If fewer than six numbers are present, enter leading zeroes until six numbers are present (e.g., return has an entry of 1234, correct to read 001234). 3.12.2.15.3.2 (01-01-2017) Field 14EIN, Employer Identification Number (EIN) The employer identification number is transcribed from item D of Schedule F. The field is nine spaces long; the entry in the field must be nine digits; and only numeric values are valid. Do not enter or allow a number that is the same as the primary or secondary TIN. Delete the entry if the primary or secondary taxpayer's TIN displays in the field or the entry is too short, and you cannot locate the EIN in the return. 3.12.2.15.3.3 (01-01-2025) Field 14FRQ, Schedule F Form 1099 Required Code This field is transcribed from item F of Schedule F. The field is one space long, and only numeric values are valid. Valid values: 0: neither box is checked. 1: box Yes is checked. 2: box No is checked, or both boxes are checked. 3.12.2.15.3.4 (01-01-2025) Field 14FFD, Schedule F Form 1099 Filed Code This field is transcribed from item G of Schedule F. The field is one space long, and only numeric values are valid. Valid values: 0: neither box is checked. 1: box Yes is checked. 2: box No is checked, or both boxes are checked. 3.12.2.15.3.5 (01-01-2017) Fields 1401B through 1409 These fields are transcribed from Part I (Cash Method of Accounting) of Schedule F. 3.12.2.15.3.6 (01-01-2017) Fields 1413 through 1428 These fields are transcribed from Part II (Farm Expenses) of Schedule F. 3.12.2.15.3.7 (01-01-2017) Field 1433, Total Farm Expenses This field transcribed from line 33 and is the total of all farm expenses in Part II, Schedule F. 3.12.2.15.3.8 (01-01-2020) Field 14AR, At-Risk Code This field is transcribed from line 36a or 36b of Schedule F. The field is one space long, and only numeric values and blank are valid. Valid values: blank: the default value, no box checked 1: box 36a checked 2: box 36b checked or both boxes 36a and 36b checked 3: box 36a and 36b unchecked or Schedules F combined≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ When Schedule F is a loss, enter Field 14AR as follows: If... Then... A] the taxpayer checked only box 36a Enter 1 in Field 14AR. B] the taxpayer checked box 36b or box 36a and box 36b Enter 2 in Field 14AR. C] the taxpayer did not check either box 36a or box 36b, Enter 3 in Field 14AR. D] multiple Schedules F were combined ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Enter 3 in Field 14AR. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 3.12.2.15.3.9 (01-01-2017) Fields 1438A through 1450 These fields are transcribed from Part III (Farm Income Accrual Method) of Schedule F. 3.12.2.16 (01-01-2018) Section 16, Schedule R Schedule R, Credit for the Elderly or the Disabled, is used to compute the amount of credit for the elderly or disabled. Refer to ECs 086, 280, and 282. Qualifications for the credit are - the taxpayer is age 65 years or older, or meets both of the following: Under the age of 65 and permanently and totally disabled. Receives a taxable disability income. 3.12.2.16.1 (01-01-2023) Error Record Format, Section 16 For Section 16 consists of the following fields: Schedule R Field Name Field Location 16FSI Filing Status Age Indicator Code Part I Questions 1611 Taxable Disability Income Line 11 1613C Other Pensions and Annuities Line 13c 1620V Credit for the Elderly Verified ERS input only All fields in this section must be positive. 3.12.2.16.2 (01-01-2020) Invalid Conditions Section 16 fields will display as invalid if not all numeric. Additional invalid conditions are given for Field 16FSI. 3.12.2.16.3 (01-01-2017) Correction Procedures Correction procedures for Section 16 fields follow. 3.12.2.16.3.1 (04-25-2022) Field 16FSI, Filing Status Age Indicator Code Field 16FSI is transcribed from Part I of Schedule R based on the box checked by the taxpayer. This field is transcribed as one digit. This field will be invalid if Section 16 is present and Field 16FSI is blank or other than 1 through 9. Use the Filing Status and/or Age Blind Indicator on the return to determine the correct FSI code. Use the following table to correct Field 16FSI: Example: If the taxpayer has checked the Age/Blind box for "65 or older" and is FSC 1, 4 or 5, enter a 1 in Field 16FSI. If... And... Then... A] Any of the following: No FSI box is checked, Multiple FSI boxes are checked, FSI is inconsistent with filing status box checked, Enter FSI code based on determination. B] Proper Code cannot be determined, No tax liability, DLSEC 16. C] Proper Code cannot be determined, A tax liability exists, SSPND 211. 3.12.2.16.3.2 (01-01-2018) Field 1611, Taxable Disability Income This field is transcribed from Part III line 11, Schedule R. 3.12.2.16.3.3 (01-01-2017) Field 1613C, Other Pensions and Annuities This field is transcribed from Part III line 13c, Schedule R. 3.12.2.16.3.4 (01-01-2017) Field 1620V, Credit for the Elderly and Disabled Verified This field is ERS input only. It is to be used whenever the computer cannot correctly compute line 22, Schedule R. Refer to EC 282. 3.12.2.17 (01-01-2017) Sections 17 and 18, Schedule SE Schedule SE, Self-Employment Tax, is used to report social security and Medicare Tax on self-employment income for the primary and/or the secondary taxpayer. Refer to EC 209. Two Schedules SE may be filed with a return. Section 17 data is for the primary taxpayer. Section 18 data is for the secondary taxpayer. Note: For the remainder of this text, Schedule SE will be referred to as Section 17; however, all correction procedures will apply equally to Sections 17 and 18. Taxpayers may elect to compute SE Tax by using the regular method, the optional method, or both methods when they have more than one source of SE Income. 3.12.2.17.1 (01-01-2024) Error Record Format Sections 17 and 18 Section 17 consists of the following fields: Schedule SE Field Name Form 1040 Field Location 17SSN SE SSN Header of Schedule SE 1701A Net Farm Profit/Loss Line 1a 1701B Conservation, Reserve Program Payments Line 1b 1702 Net Non Farm Profit/Loss Line 2 17TE Tentative Earnings Line 3 1704B Optional Method Income Amount ERS input only 17QC SE Quarters Covered Edited in right margin of line 4c 17CHW Tentative Church Wages Line 5a 17TSW Total Social Security Wages Covered Line 8d 17SIV Self-Employed Social Security Income Computer Verified ERS input only 17MCD SE Method Code Edited on bottom center margin 17SEV SE Tax Verified ERS input only Fields 1701A and 1702 may be either positive or negative. All other fields must be positive. Exception: Field 1701B is programmed as a negative field. 3.12.2.17.2 (01-01-2020) Invalid Conditions Section 17 fields will display as invalid if not all numeric. Additional invalid conditions are given for Fields 17SSN, 17MCD and 17QC. 3.12.2.17.3 (01-01-2017) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Compute and enter accordingly when a transcribed line is blank and there are entries leading to an amount. Taxpayers may elect to compute SE Tax using both methods (regular and optional) if they have more than one source of SE Income. This will be indicated by an entry on both lines 3 and 4b of the long Schedule SE. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Additional correction procedures for Section 17/18 fields follow. 3.12.2.17.3.1 (01-01-2020) Field 17SSN, Social Security Number (SSN) This field is transcribed from the header of Schedule SE as follows: The SSN in Field 17SSN must be for the primary taxpayer. The SSN in Field 18SSN must be for the secondary taxpayer. This field will display as invalid if it contains fewer than nine digits or any non-numeric character(s). When Section(s) 17/18 is present, Field 17/18SSN cannot be all blanks. A valid S-SSN is required in Field 01SS if Section 18 is present. 3.12.2.17.3.2 (01-01-2020) Field 1701A, Net Farm Profit/Loss This field is transcribed from Schedule SE line 1a and is the amount of farm income (Schedule F) and/or farm partnership income. When Field 1701A is blank, enter the total amount from line 34, Schedule F. 3.12.2.17.3.3 (01-01-2020) Field 1701B, Conservation Reserve Program Payments Exclusions This field is transcribed from line 1b and is the amount of Conservation Reserve Program Payments claimed on line 4b, Schedule F. When Field 1701B is blank, enter the amount from line 4b, Schedule F. 3.12.2.17.3.4 (01-01-2024) Field 1702, Net Non Farm Profit/Loss This field is transcribed from Schedule SE, line 2, and is the amount of line 31, Schedule C income and/or other Non-Farm Self-Employment Income. When Field 1702 is blank, enter the amount from line 31, Schedule C. 3.12.2.17.3.5 (01-01-2020) Field 17TE, Tentative Earnings Field 17TE is transcribed from Schedule SE, line 3, and represents the taxpayer's total of lines 1a, 1b, and 2 (1a-1b+2=3). Code and Edit edits line 3 when it is blank and amounts are present leading to it, or when an entry is present on line 4a or 4b and the lines leading to line 3 are all blank or negative. 3.12.2.17.3.6 (01-01-2017) Field 1704B, Optional Method Income Amount This field is for ERS input only. It is used when the taxpayer is using one or both of the optional methods. 3.12.2.17.3.7 (01-01-2024) Field 17QC, Self-Employment Quarters Covered This code will be used on short year returns only. This code is edited by Code and Edit in the right margin of line 4c. This field will display as invalid if transcribed as other than 1, 2, or 3. Code 0 (zero) is also valid, but is computer-generated and cannot be transcribed. Compare the field on the screen to the entry on the return. Correct any editing or transcription error(s). Determine the number of quarters covered by the tax period when code is invalid and code as follows: If number of... Then... A] Quarters is 1 Enter 1 in Field 17QC. B] Quarters are 2 Enter 2 in Field 17QC. C] Quarters are 3 Enter 3 in Field 17QC. D] Quarters are more than 3 or cannot be determined, Blank the code to generate Code 0 (zero). Note: A fraction of a quarter counts as a full quarter. The quarters begin in January, April, July and October. 3.12.2.17.3.8 (01-01-2024) Field 17CHW, Tentative Church Wages This field is transcribed from line 5a. 3.12.2.17.3.9 (01-01-2024) Field 17TSW, Total Social Security Wages Covered This field is transcribed from line 8d, and is the sum of lines 8a, 8b, and 8c. 3.12.2.17.3.10 (01-01-2018) Field 17SIV, Self Employed Social Security Income Computer Verified The field is for ERS input only. This field is eleven spaces long, and only numeric values are valid. TY16 and prior - Use this field when ERS programming cannot correctly figure SE Tax. Enter the smaller of line 6 or 9 in Part I of Section B (page 2) of Schedule SE. 3.12.2.17.3.11 (01-01-2017) Field 17SEV, Self-Employment Tax Verified This field is for ERS input only. It is used when the computer's computation is not reliable for SE Tax. 3.12.2.17.3.12 (01-01-2020) Field 17MCD, SE Method Code Field 17MCD will display as invalid if transcribed as other than 1 or 2. Code 0 (zero) is also valid, but is computer generated and cannot be transcribed. Compare the field on the screen with the entry on the return. Correct any editing or transcription error(s). Enter 1 in Field 17MCD if income is from a business. Enter 2 in Field 17MCD if income is from a farm. If income is from a business and a farm, see the following instructions. 3.12.2.17.3.12.1 (01-01-2017) Field 17MCD, SE Method Coding Code Field 17MCD using the following table when invalid: If... And... Then... A] Line 17 contains an entry, Line 17 is larger than line 15, Line 4b matches the total of lines 15 and 17, Line 15 is blank or zero, Enter 1 in Field 17MCD. B] Line 15 or 17 contains an entry, Not all of the preceding conditions for Code 1 are met, Enter 2 in Field 17MCD. C] You cannot determine the code, Blank Field 17MCD to generate Code 0 (zero). 3.12.2.18 (01-01-2019) Section 19, Form 1116 Form 1116, Foreign Tax Credit, is used to claim credit for income tax paid to a foreign country or U.S. possession. Refer to EC 277. 3.12.2.18.1 (01-01-2024) Error Record Format Section 19 Section 19 consists of the following fields from Form 1116: Form 1116 Field Name Form 1040 Field Location 19AF Additional Forms 1116 Attached Right Margin of Part I 1901A Gross Income from Foreign Source Line 1a 1906 Applicable Deduction and Losses Line 6 1907 Taxable Income from Foreign Source Line 7 1908 Total Foreign Taxes Paid Line 8 1914 Total Foreign Taxes Available for Credit Line 14 1916 Form 1116 Adjustments Line 16 1917 Net Taxable Income from Foreign Source Line 17 1921 Maximum Allowable Credit Line 21 1922 Excess Limitation Account Section 960C Line 22 1923 Total Limitation Line 23 1924 Gross Foreign Tax Credit Line 24 1934 International Boycott Operations Credit Reduction Line 34 1935 Form 1116 Foreign Tax Credit Line 35 All fields in this section must be positive, except Field 1916 can be either positive or negative. 3.12.2.18.2 (01-01-2017) Invalid Conditions Section 19 fields will display as invalid if not all numeric. Additional invalid conditions are given for Field 19AF. 3.12.2.18.3 (01-01-2017) Correction Procedures When more than one Form 1116 is attached, use the Form 1116 that has entries in Part IV. Additional correction procedures for Section 19 fields follow. 3.12.2.18.3.1 (01-01-2017) Field 19AF, Additional Forms 1116 Attached Code and Edit will code this field in the margin to the right of "Part I" . This field will display as invalid if present and not numeric. Correct Field 19AF based on the number of Forms 1116 attached to the return as follows: If... Then... A] Only one Form 1116 is attached and incorrect number is transcribed, Enter 0 (zero) in Field 19AF. B] Two through nine Forms 1116 are attached, Enter the number of additional forms in Field 19AF. C] More than nine Forms 1116 are attached, Enter 9 in Field 19AF. 3.12.2.18.3.2 (01-01-2024) Fields 1914, 1916, 1917, 1921, 1922, 1923, and 1924 (Part III) These fields are transcribed from Part III (Figuring the Credit) of Form 1116. Field 1914, Total Foreign Taxes Available for Credit, is transcribed from line 14, Form 1116. Field 1916, Form 1116 Adjustments, is transcribed from line 16, Form 1116. Field 1917, Net Taxable Income from Foreign Source, is transcribed from line 17, Form 1116. Field 1921, Maximum Allowable Credit, is transcribed from line 21, Form 1116 (TY17 through TY19, line 21). Field 1922, Excess Limitation Account Section 960C, is transcribed from line 22, Form 1116 (TY20 through present). Field 1923, Total Limitation, is transcribed from line 23, Form 1116 (TY20 through present). Field 1924, Gross Foreign Tax Credit, is transcribed from line 24, Form 1116 (TY17 through TY19, line 22). 3.12.2.18.3.3 (01-01-2024) Fields 1934 and 1935 (Part IV) These fields are transcribed from Part IV, Summary of Credits of Form 1116. Field 1934, International Boycott Operations Credit Reduction, is transcribed from line 34, Form 1116 (TY18 and TY19, line 32; TY17, line 29). Field 1935 Form 1116 Foreign Tax Credit, is transcribed from line 35, Form 1116 (TY18 and TY19, line 33; TY17, line 30). 3.12.2.19 (01-01-2025) Section 20, Schedule J Schedule J, Income Averaging for Individuals with Income from Farming or Fishing, is used to reduce their tax by income averaging their farming or fishing income over the previous three years. Refer to EC 265. If the taxpayer owes alternative minimum tax (AMT) for the current tax period, Schedule J will not reduce the total tax. 3.12.2.19.1 (01-01-2023) Error Record Format, Section 20 Section 20 consists of the following fields: Schedule J Field Name Field Location 2002A Elected Farm Income Line 2a 2002B Excess Net Long-Term Gain Line 2b 2008 3-Year Old Schedule J Tax Line 8 2012 2-Year Old Schedule J Tax Line 12 2016 1-Year Old Schedule J Tax Line 16 2019 3-Year-Old Actual Schedule J Tax Line 19 2020 2-Year-Old Actual Schedule J Tax Line 20 2021 1-Year-Old Actual Schedule J Tax Line 21 All fields in this section must be positive except field 2002A which may be positive or negative. 3.12.2.19.2 (01-01-2020) Invalid Conditions Section 20 fields will display as invalid if not all numeric. 3.12.2.19.3 (01-01-2017) Correction Procedures Refer to EC 265. 3.12.2.19.3.1 (01-01-2017) Field 2002A through 2021 These fields are transcribed from Schedule J. 3.12.2.20 (01-01-2025) Section 21, Form 2441 Form 2441, Child and Dependent Care Expenses, is used for the computation of a tax credit for expenses incurred and paid for employment related to child care, disabled dependent care or disabled spouse care. Refer to EC 279 and 280. TY96 and later - Taxpayers must provide the TIN for care providers (See IRM 3.12.2.20.3.4 for exceptions) and the TIN for the child or dependent being cared for (See EC 010 for exceptions). 3.12.2.20.1 (01-01-2025) Error Record Format, Section 21 Section 21 consists of the following fields: Form 2441 Field Name Field Location 21MFS Qualifying Married Filing Separate Indicator, Form 2441 Checkbox A 21DI Form 2441 Student or Disabled Indicator Checkbox B 21CPN Child Care Provider Name Control 1 Line 1a 21CPT Child Care Provider TIN Line 1c 21HEI Child Care Provider Household Employee Code Line 1d 21QI Qualifying Individual Number Transcribed based on the number of TINs on line 2 21CN1 Dependent 1 Child Care Name Control Line 2a, row 1 21DS1 Dependent 1 Child Care SSN Line 2b, row 1 211DI Child Care Credit Dependent 1 Disabled Indicator Line 2c, row 1 21CP1 Dependent 1 Child Care Payment Amount Line 2d, row 1 21CN2 Dependent 2 Child Care Name Control Line 2a, row 2 21DS2 Dependent 2 Child Care SSN Line 2b, row 2 212DI Child Care Credit Dependent 2 Disabled Indicator Line 2c, row 2 21CP2 Dependent 2 Child Care Payment Amount Line 2d, row 2 2103 Qualifying Expenses Incurred Amount Line 3 2104 Primary Earned Income Line 4 2105 Secondary Earned Income Line 5 21PYE Prior-Year Expenses Line 9b 2112 Dependent Care Employer Benefits Amount Line 12 2116 Qualified Expenses Incurred Amount (Employer) Line 16 2125 Dependent Care Exclusion Line 25 2126 Dependent Care Taxable Benefits Line 26 21CCV Child Care Credit Verified ERS input only 21CSR Child Care SSN Requirement ERS input only All money fields in this section are positive only. 3.12.2.20.2 (01-01-2020) Invalid Conditions Section 21 money amount fields will display as invalid if not all numeric. Additional invalid conditions are given for Field 21QI. 3.12.2.20.3 (01-01-2017) Correction Procedures Correction procedures for Section 21 fields follow. 3.12.2.20.3.1 (01-04-2021) Field 21MFS, Qualifying Married Filing Separate Indicator Field 21MFS is transcribed from check box A Form 2441. This field is a one-digit numeric field. Code 1 if the box is checked. Code 0 if the box is not checked. 3.12.2.20.3.2 (01-01-2024) Field 21DI, Student or Disabled Indicator Field 21DI is valid for TY22 and later only. It is transcribed from check box B Form 2441. This field is a one-digit numeric field. Code 1 if the box is checked. Code 0 if the box is not checked. 3.12.2.20.3.3 (01-01-2017) Field 21CPN, Child Care Provider Name Control This field is transcribed from line 1(a), Form 2441. It consists of the first four letters of the provider's name. 3.12.2.20.3.4 (01-01-2025) Field 21CPT, Child Care Provider TIN This field is transcribed from line 1(c), Form 2441. A Care Provider TIN is not required when any of the following apply: The provider is a tax-exempt organization. The provider is a foreign citizen (LAFCP, Living Abroad Foreign Care Provider). Due diligence applies (see the following (3)). Note: If Field 21CPT is blank because there is a notation that the provider is a tax-exempt organization, a foreign citizen (LAFCP), or due diligence applies, GTSEC 01, enter D in Field 01SPC and transmit. The provider’s TIN is not required when the taxpayer has exercised "due diligence" to comply with the requirement for a TIN. Due diligence applies only to notations that indicate either of the following: The provider has moved and the taxpayer is unable to find the provider to get the TIN. The provider has refused to give the TIN to the taxpayer. The following notations are not acceptable due diligence statements: "Unable" to get the TIN TIN is "not available" "Unknown" "Pending" "Applied for" Use the following table to correct Field 21CPT: If... Then... A] A care provider TIN is not present because the provider is tax-exempt, a foreign citizen (LAFCP), or due diligence applies, GTSEC 01, enter D in Field 01SPC and transmit. Blank Field 21CPT. B] More than one provider is listed; however, only one provider's TIN is listed, Allow the Child and Dependent Care Credit. C] Field 21CPT has periods (....) because provider's TIN has more or fewer than 9 digits, or Field 21CPT is blank and conditions in A] do not apply, GTSEC 21. Delete the entry in Field 21CPT, if present. Delete the entry in Field 2103. Assign TPNC 234 when EC 280 displays. 3.12.2.20.3.5 (01-01-2023) Field 21HEI, Child Care Provider Household Employee Code This field is transcribed from line 1d, Form 2441. This field will display as invalid if other than numeric. Correct Field 21HEI as follows: If... Then... A] Neither box is checked, Code 0. B] The “Yes” box is checked, Code 1. C] The “No” box is checked, Code 2. D] Both “Yes and No” boxes are checked, Code 3. 3.12.2.20.3.6 (01-01-2023) Field 21QI, Qualifying Individual Number This field is transcribed based on the number of SSNs present on line 2, Form 2441. This field will display as invalid if other than blank or numeric. Determine the correct code, based on the number of qualifying Child Care Dependents SSNs present, as follows: If the number of Qualifying Child Dependent SSNs are... Then... A] 1 through 9, Code the appropriate number (e.g., Code 3 if 3 SSNs are present). B] 9 or more, Code 9. C] None, Blank Field 21QI. 3.12.2.20.3.7 (01-01-2024) Field 21CN1 and 21CN2, Dependent Child Care Name Control 1 and 2 This field is transcribed from line 2(a), Form 2441. It consists of the first four letters of the child's last name. Use the following priority to correct Field(s) 21CN1/21CN2 when the Child Care dependent's last name is not present and has not been edited by Code and Edit: TY18 and later, from dependents section on page 1, Form 1040 (TY17 and prior, from line 6c of Form 1040) Schedule EIC Attachments The primary taxpayer's name control 3.12.2.20.3.8 (01-01-2020) Field 21DS1 and 21DS2, Dependent Child Care SSN 1 and 2 This field is transcribed from line 2(b), Form 2441. Use the following priority to correct Field 21DS1/21DS2 when the Child Care Credit Dependent's SSN is missing, incomplete or illegible and has not been edited by Code and Edit: TY18 and later, from dependents section on page 1, Form 1040 (TY17 and prior, from line 6c of Form 1040) Schedule EIC Attachments 3.12.2.20.3.9 (01-01-2024) Field 211DI and 212DI, Child Care Credit Dependent 1 and 2 Disabled Indicator Field 211DI and 212DI are valid for TY22 and later only. This field is transcribed from line 2(c), Form 2441. This field is a one-digit numeric field. Code 1 if the box is checked. Code 0 if the box is not checked. 3.12.2.20.3.10 (01-03-2023) Field 21CP1 and 21CP2, Dependent Child Care Payment Amount 1 and 2 This field is transcribed from line 2(d), Form 2441 (TY21 and prior, located on line 2(c)). This column represents the amount paid for each Child Care Credit Dependent. 3.12.2.20.3.11 (01-01-2024) Field 2103, Qualifying Expenses Incurred Amount This field is transcribed from line 3, Form 2441. Correct Field 2103 as follows: If... Then... A] Line 3 is blank, Compute by adding line 2, column (c) amount(s). Enter in Field 2103. B] Line 3 has an amount greater than sum of line 2(c) columns, Compute by adding line 2, column (c) amount(s). Enter in Field 2103, if different. C] The expenses claimed cannot be determined, SSPND 211 to correspond (see note). Note: If the taxpayer is claiming a credit on Schedule 3, line 2 (TY18, Schedule 3, line 49; TY17, Form 1040, line 49), and they completed the employer-provided dependent care benefits portion of the schedule, they are entitled to the credit if expenses from line 16 are greater than employer-provided benefits from line 15. In this case, the taxpayer completed Part III to compute their allowable expenses and then entered the amount on line 1e, Form 1040 (TY21-TY18, line 1, Form 1040; TY17, line 7, Form 1040, with a notation of "DCB" on dotted portion of line), and then completed the rest of the form. If applicable, use the "DCB" part of the form to back into the expenses and excluded benefits amounts before corresponding. 3.12.2.20.3.12 (01-01-2023) Fields 2104 and 2105, Primary and Secondary Earned Income These fields are transcribed from lines 4 and 5. Determine and input the Earned Income amounts when lines 4 and/or 5 are blank, zero or dash from the following: Form(s) W-2 Line 3 from Schedule SE (minus line 27 adjustment amount) Lines 18 (primary) and 19 (secondary), Form 2441 Amount in Field 04OTI identified as earned income Schedule C Schedule E (Part II) Schedule F Note: Do not enter the amount from line 4 in Field 2105, when FSC is 1, 3, 4, 5, 6 or 7, unless the taxpayer has an amount on line 5 of Form 2441. If Form 2441, lines 4 and/or 5, are blank and there is an indication that the spouse is a student, disabled, or looking for work and had no earned income, and the number of months is not indicated, SSPND 211. Exception: Do not correspond if there is no tax liability. 3.12.2.20.3.13 (01-01-2017) Field 21PYE, Prior-Year Expense This field transcribed from line 9b, Form 2441 (TY20 and prior, located to the left of line 9, Form 2441, notated as "CPYE or PYE" ). 3.12.2.20.3.14 (01-01-2017) Field 2112, Dependent Care Employer Benefit Amount This field is transcribed from line 12, Form 2441. Determine and input the amount for Field 2112 from Form W-2, when there is an amount on line 13 and no entry on line 12, but the taxpayer attempted to complete this portion of the form. 3.12.2.20.3.15 (01-01-2017) Field 2116, Qualified Expenses Incurred Amount (Employer) This field is transcribed from line 16, Form 2441. 3.12.2.20.3.16 (01-01-2017) Field 2125, Dependent Care Exclusion This field is transcribed from line 25, Form 2441. 3.12.2.20.3.17 (01-01-2023) Field 2126, Dependent Care Taxable Benefits This field is transcribed from line 26, Form 2441 Refer to EC 201. 3.12.2.20.3.18 (01-01-2017) Field 21CCV, Child Care Credit Verified This field is for ERS input only. It is to be used when the computer cannot correctly compute Child and Dependent Care Credit. 3.12.2.20.3.19 (01-01-2017) Field 21CSR, Child Care SSN Requirement This is a one position field and is ERS input only. Child Care SSN Requirement Field will be invalid if other than 0 (zero), 1, 2, or 3. Take the following steps when it's indicated that the child was born in the tax period of the tax return and died in the same or consecutive tax period. A copy of the birth certificate, death certificate, or hospital record must support the assertion. Enter I in Field 01RPC. Enter 1, if SSN is not required for Field 21DS1. Enter 2, if SSN is not required for Field 21DS2. Enter 3, if both SSNs are not required. Enter 1, 2, or 3 in the Child Care SSN Requirement field if the TINs are missing because Amish, Mennonite, or Form 4029 is noted. 3.12.2.21 (01-01-2024) Section 22, Form 3800 Form 3800, General Business Credit, is used to compute the total General Business Credit when the taxpayer has any Business Credit to be claimed. PY24 and later, Form 3800 is divided into two sections, Section 22 and Section 23. Refer to EC 303. Taxpayers are instructed to attach Form 3800 if there is an amount on Schedule 3, line 6a (The taxpayer will mark box “a” on Schedule 3, line 6; TY18, Schedule 3, line 54; TY17, Form 1040, line 54). 3.12.2.21.1 (01-01-2025) Error Record Format, Section 22 Section 22 consists of the following fields: Form 3800 Field Name Field Location 2201 Non Passive Activity Credit Part I, line 1 2202 Passive Activity Credit Included Part I, line 2 2203 Part 1 Passive Activity Credit Allowed Amount Part I, line 3 2204 Form 3800 Carryforward Credit Part I, line 4 2205 Form 3800 Carryback Credit Amount Part I, line 5 2224 Part 2 Passive Activity Credit Allowed Amount Part II, line 24 2225 Empowerment Zone Credit Included Part II, line 25 2226 Empowerment Zone Credit Allowed Part II, line 26 2236 Net Allowable General Business Credit Part II, line 36 22IND Consolidated Part lll Indicator Part III, line I 221AG Statutory Investment Credit Part III, line 1a, column g (TY23, column j) 221BB Form 7207 Elective Payment or Transfer Registration Number Part III, line 1b, column b 221BF Form 7207 Credit Transfer Election Amount Part III, line 1b, column f (TY23, column g) 221BG Form 7207 Credit Amount Part III, line 1b, column g (TY23, column j) 221BH Form 7207 Gross Elective Payment Election Amount Part III, line 1b, column h 221BJ Form 7207 Net Elective Payment Election Amount Part III, line 1b, column j (TY23, column i) 221CG Increasing Research Activities Credit Part III, line 1c, column g (TY23, column j) 221DB Form 3468 Part III Elective Payment or Transfer Registration Number Part III, line 1d, column b 221DF Form 3468 Part III Credit Transfer Election Amount Part III, line 1d, column f (TY23, column g) 221DG Form 3468 Part III Credit Part III, line 1d, column g (TY23, column j) 221EG Disabled Access Credit Part III, line 1e, column g (TY23, column j) 221FB Form 8835 Elective Payment or Transfer Registration Number Part III, line 1f, column b 221FF Form 8835 Credit Transfer Election Amount Part III, line 1f, column f (TY23, column g) 221FG Form 8835 Credit Part III, line 1f, column g (TY23, column j) 221GB Form 7210 Elective Payment or Transfer Registration Number Part III, line 1g, column b 221GF Form 7210 Credit Transfer Election Amount Part III, line 1g, column f (TY23, column g) 221GG Form 7210 Credit Amount Part III, line 1g, column g (TY23, column j) 221GH Form 7210 Gross Elective Payment Election Amount Part III, line 1g, column h 221GJ Form 7210 Net Elective Payment Election Amount Part III, line 1g, column j (TY23, column i) 221HG Orphan Drug Credit Part III, line 1h, column g (TY23, column j) 221IG New Markets Credit Part III, line 1i, column g (TY23, column j) 221JG Small Employer Pension Plan Startup Costs and Auto-enrollment Credit Part III, line 1j, column g (TY23, column j) 221KG Employer-Provided Child Care Facilities Credit Part III, line 1k, column g (TY23, column j) 221LG Biodiesel Fuels Credit Part III, line 1l, column g (TY23 column j) 221MG Low Sulfur Diesel Fuel Credit Part III, line 1m, column g (TY23, column j) 221NG Distilled Spirits Credit Part III, line 1n, column g (TY23, column j) 221OB Form 3468 Part IV Elective Payment or Transfer Registration Number Part III, line 1o, column b 221OG Form 3468 Part IV Credit Part III, line 1o, column g (TY23, column j) 221OH Form 3468 Part IV Gross Elective Payment Election Amount Part III, line 1o, column h 221OJ Form 3468 Part IV Net Elective Payment Election Amount Part III, line 1o, column j (TY23, column i) 221PG Energy Efficient Home Credit Part III, line 1p, column g (TY23, column j) 221QB Form 7218 Elective Payment or Transfer Registration Number Part III, line 1q, column b 221QF Form 7218 Credit Transfer Election Amount Part III, line 1q, column f 221QG Form 7218 Credit Part III, line 1q, column g 221RG Alternative Motor Vehicle Credit TY23, Part III, line 1r, column j 221SB Form 8911 Elective Payment or Transfer Registration Number Part III, line 1s, column b 221SF Form 8911 Credit Transfer Election Amount Part III, line 1s, column f (TY23, column g) 221SG Form 8911 Credit Part III, line 1s, column g (TY23, column j) 221TG Enhanced Oil Recovery Credit Part III, line 1t, column g (TY23, column j) Section 22 fields are 11 characters in length. They must be a positive numeric amount and dollars only. Exception: Field 22IND is 1 character in length. Fields 221BB, 221DB, 221FB, 221GB, 221OB, 221QB, and 221SB are 12 characters in length. 3.12.2.21.2 (01-01-2017) Invalid Conditions Fields in Section 22 will display as invalid if not all numeric. 3.12.2.21.3 (01-01-2018) Correction Procedures Follow correction procedures found for each field in Section 22. Note: Make sure all credits have been added and the correct limitation has been applied. If Total Income Tax Liability is over $25,000, the General Business Credit is limited to $25,000 plus 25 percent of the excess over $25,000. 3.12.2.21.3.1 (01-01-2018) Field 2201, Non-Passive Activity Credit Amount This field is transcribed from line 1, Part I of Form 3800, for TY11 and later. Correction procedures: If an amount is present on line 1, Part I, enter this amount in Field 2201. If an amount is not present on line 1, enter the amount present on line 2 (column (c) total of lines 1a through 1zz) of Part III in Field 2201, when box A is checked. Note: If multiple Parts III are present, enter the combined total of all line 2 column (c) amounts from all Parts III with box A marked that are present after first Part III (consolidation for all Part III amounts). 3.12.2.21.3.2 (01-01-2018) Field 2202, Passive Activity Credit Included Amount This field is transcribed from line 2, Part I of Form 3800, for TY11 and later. Correction procedures: If an amount is present on line 2, Part I, enter this amount in Field 2202. If an amount is not present on line 2, enter the amount present on line 2 column (c) (total of lines 1a through 1zz) of Part III in Field 2202, when box B is checked. Note: If multiple Parts III are present, enter the combined total of all line 2 column (c) amounts from all Parts III with box B marked that are present after the first Part III (consolidation for all Part III amounts). 3.12.2.21.3.3 (01-01-2018) Field 2203, Part 1 Passive Activity Credit Allowed Amount This field is transcribed from line 3, Part I of Form 3800, for TY11 and later. Correction procedures: If an amount is present on line 3, enter this amount in Field 2203. If an amount is not present on line 3, enter the amount present on line 5 column (c) of Part III in Field 2203. Note: If multiple Parts III are present, enter the combined total of all line 5 amounts from all Parts III present after the first Part III (consolidation for all Part III amounts). 3.12.2.21.3.4 (01-01-2018) Field 2204, Form 3800 Carryforward Credit Amount This field is transcribed from line 4, Part 1 of Form 3800, for TY11 and later. Correction procedures: If an amount is present on line 4, enter this amount in Field 2204. If an amount is not present on line 4, enter the amount present on line 2 column (c) of Part III in Field 2204, when box C is checked. Note: If multiple Parts III are present, enter the combined total of all line 2 column (c) amounts from all Parts III with box C marked that are present after the first Part III (consolidation for all Part III amounts). 3.12.2.21.3.5 (01-01-2018) Field 2205, Form 3800 Carryback Credit Amount This field is transcribed from line 5, Part I of Form 3800, for TY11 and later. Correction procedures: If an amount is present on line 5, enter this amount in Field 2205. If an amount is not present on line 5, enter the amount present on line 2 column (c) of Part III in Field 2205, when box D is checked. Note: If multiple Parts III are present, enter the combined total of all line 2 column (c) amounts from all Parts III with box D marked that are present after the first Part III (consolidation for all Part III amounts). 3.12.2.21.3.6 (01-01-2018) Field 2224, Part 2 Passive Activity Credit Allowed Amount This field is transcribed from line 24, Part II of Form 3800, for TY11 and later. If an amount is present on line 24, enter this amount in Field 2224. 3.12.2.21.3.7 (01-01-2018) Field 2225, Empowerment Zone Employment Credit Included This field is transcribed from line 25, Part II of Form 3800, for TY11 and later. If an amount is present on line 25, enter this amount in Field 2225. 3.12.2.21.3.8 (01-01-2018) Field 2226, Empowerment Zone Employment Credit Allowed This field is transcribed from line 26, Part II of Form 3800, for TY11 and later. If an amount is present on line 26, enter this amount in Field 2226. 3.12.2.21.3.9 (01-01-2018) Field 2236, Net Allowable General Business Credit Amount This field is transcribed from line 36, Part II of Form 3800, for TY11 and later. Correction procedures: If an amount is present on line 36, enter this amount in Field 2236. If an amount is not present on line 36, enter the combined amount from lines 30, 33, 34, and 35 of Form 3800 in Field 2236. 3.12.2.21.3.10 (01-01-2024) Field 22IND, Consolidated Part 3 Indicator This field is transcribed when the box is checked on line I, Part III of Form 3800, for TY22 and prior. If the box is checked on line I, Part III of Form 3800, enter 1 in Field 22IND. 3.12.2.21.3.11 (01-01-2025) Fields 221AG through 221TG These fields are transcribed from lines 1a through 1t, Part III of Form 3800. 3.12.2.22 (01-01-2025) Section 23, Form 3800 Part III Form 3800, General Business Credit, continues in Section 23. Refer to EC 303. Taxpayers are instructed to attach Form 3800 if there is an amount on Schedule 3, line 6a (The taxpayer will mark box “a” on Schedule 3, line 6; TY18, Schedule 3, line 54; TY17, Form 1040, line 54). 3.12.2.22.1 (01-01-2025) Error Record Format, Section 23 Section 23 consists of the following fields: Form 3800 Part III Field Name Field Location 231UB Form 7213 Part II Elective Payment or Transfer Registration Number Part III, line 1u, column b 231UF Form 7213 Part II Credit Transfer Election Amount Part III, line 1u, column f (TY23, column g) 231UG Form 7213 Part II Credit Part III, line 1u, column g (TY23, column j) 231VB Form 3468 Part V Elective Payment or Transfer Registration Number Part III, line 1v, column b 231VF Form 3468 Part V Credit Transfer Election Amount Part III, line 1v, column f 231VG Form 3468 Part V Credit Part III, line 1v, column g 231WG Employer Differential Wage Payments Credit Amount Part III, line 1w, column g (TY23, column j) 231XB Form 8933 Elective Payment or Transfer Registration Number Part III, line 1x, column b 231XF Form 8933 Credit Transfer Election Amount Part III, line 1x, column f (TY23, column g) 231XG Form 8933 Credit Part III, line 1x, column g (TY23, column j) 231XH Form 8933 Gross Elective Payment Election Part III, line 1x, column h 231XJ Form 8933 Net Elective Payment Election Amount Part III, line 1x, column j (TY23, column i) 231YG Form 8936 Part II Credit Part III, line 1y, column g (TY23, column j) 231AA Form 8936 Part V Credit Part III, line 1aa, column g (TY23, column j) 231BB Form 8904 Credit Part III, line 1bb, column g (TY23, column j) 231CC Form 7213 Part I Credit Part III, line 1cc, column g (TY23, column j) 231DD Form 8881 Part II Credit Part III, line 1dd, column g (TY23, column j) 231EE Form 8881 Part III Credit Part III, line 1ee, column g (TY23, column j) 231FF Form 8864 Credit Part III, line 1ff, column g (TY23, column j) 23GGB Form 7211 Elective Payment or Transfer Registration Number Part III, line 1gg, column b 23GGF Form 7211 Credit Transfer Election Amount Part III, line 1gg, column f 23GGG Form 7211 Credit Part III, line 1gg, column g 231ZZ Other Credits Amount Part III, line 1zz, column g (TY23, column j) 23CHS Certified Historic Structures Credit Coded in lower right margin, page 3 23DPI Form 3800 Part V Column B Data Present Indicator Coded in the center bottom margin, page 3 2303G Form 8844 Credit Part III, line 3, column g (TY23, column j) 234AB Form 3468 Part VI Elective Payment or Transfer Registration Number Part III, line 4a, column b 234AF Form 3468 Part VI Credit Transfer Election Amount Part III, line 4a, column f (TY23, column g) 234AG Form 3468 Part VI Credit Part III, line 4a, column g (TY23, column j) 234EB Form 8835 Section 6417 Elective Payment or Transfer Registration Number Part III, line 4e, column b 234EF Form 8835 Section 6417 Credit Transfer Election Amount Part III, line 4e, column f (TY23, column g) 234EG Form 8835 Section 6417 Credit Part III, line 4e, column g (TY23, column j) 234HG Small Employer Health Insurance Premiums Credit Part III, line 4h, column g (TY23, column j) 234JG Employer Credit for Paid Family and Medical Leave Amount Part III, line 4j, column g (TY23, column j) 234KG Form 3468 Part VII Credit Part III, line 4k, column g (TY23, column j) 23TOT Total Additional Business Credit Amount Part III, line 5, column j 23EPC Elective Payment Election Resolution Code ERS input only 23BCV General Business Credits Verified ERS input only Fields in Section 23 must be positive entries, and are 11 characters in length. Exception: Fields 23DPI and 23EPC are 1 character in length. Fields 231UB, 231VB, 231XB, 23GGB, 234AB, and 234EB are 12 characters in length. 3.12.2.22.2 (01-01-2020) Invalid Conditions Section 23 fields will display as invalid if other than numeric. 3.12.2.22.3 (01-01-2024) Correction Procedures Correct coding and transcription errors and misplaced entries in displayed fields. Follow correction procedures found for each field in Section 23. 3.12.2.22.3.1 (01-01-2024) Fields 231UB Through 231ZZ These fields are transcribed from lines 1u through 1zz of Form 3800, Part III. 3.12.2.22.3.2 (01-02-2024) Field 23CHS, Certified Historic Structures Credit This field is edited in the lower right margin of page 3, Form 3800. If not edited, enter the amount from line 11f of Form 3468, in Field 23CHS ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. 3.12.2.22.3.3 (01-01-2024) Field 23DPI, Form 3800 Part V Column B Data Present Indicator This field is edited in the center bottom margin of page 3, Form 3800. Field 23DPI is 1 character in length, and is used to determine if data is present in Part V, column b of Form 3800. Compare Part V, column b fields on the screen to the entry and correct screen display. 0 if data is not present 1 if data is present 3.12.2.22.3.4 (01-01-2024) Fields 2303J Through 234KJ These fields are transcribed from lines 3 through 4k of Form 3800, Part III. 3.12.2.22.3.5 (01-01-2024) Field 23TOT, Total Additional Business Credit Amount This field is transcribed from line 5, Part III of Form 3800. If an amount is or is not present on line 5, Part III of Form 3800, enter the total of lines 4a through 4z in Field 23TOT. 3.12.2.22.3.6 (01-01-2024) Field 23BCV, General Business Credits Verified Field 23BCV is ERS input only and is used when the computer cannot compute General Business Credits correctly. Refer to EC 303. 3.12.2.23 (01-01-2017) Sections 24 and 25, Form 4137 Form 4137, Social Security and Medicare Tax on Unreported Tip Income, is used to figure the Social Security and Medicare Tax owed on tips that they did not report to their employer, including any allocated tips shown on the Form W-2. Refer to EC 314. Two Forms 4137 may be filed with a return. Section 24 data is for the primary taxpayer. Section 25 data is for the secondary taxpayer. Note: For the remainder of this text, Form 4137 will be referred to as Section 24; however, all correction procedures will apply equally to Sections 24 and 25. 3.12.2.23.1 (01-01-2023) Error Record Format-Section 24 and 25 Section 24 consists of the following fields: Form 4137 Field Name Field Location 24SSN Form 4137 SSN-Primary Header of Form 4137 24ANM Employer A Name Line A, column 1a 24AEN Employer A EIN Line A, column 1b 24ARC Employer A Tips Received Line A, column 1c 24ARP Employer A Tips Reported Line A, column 1d 24BNM Employer B Name Line B, column 1a 24BEN Employer B EIN Line B, column 1b 24BRC Employer B Tips Received Line B, column 1c 24BRP Employer B Tips Reported Line B, column 1d 24CNM Employer C Name Line C, column 1a 24CEN Employer C EIN Line C, column 1b 24CRC Employer C Tips Received Line C, column 1c 24CRP Employer C Tips Reported Line C, column 1d 24DNM Employer D Name Line D, column 1a 24DEN Employer D EIN Line D, column 1b 24DRC Employer D Tips Received Line D, column 1c 24DRP Employer D Tips Reported Line D, column 1d 24ENM Employer E Name Line E, column 1a 24EEN Employer E EIN Line E, column 1b 24ERC Employer E Tips Received Line E, column 1c 24ERP Employer E Tips Reported Line E, column 1d 2402 Total Cash and Tips Received Line 2 2403 Total Cash and Tips Reported Line 3 2405 Incidental Cash and Tips Line 5 2406 Unreported Tips Subject to Medicare Tax Line 6 2408 SS Wages and Tips Line 8 24GOV