3.12.13 Employment Tax Returns

Manual Transmittal

November 09, 2017

Purpose

(1) This transmits revised IRM 3.12.13, Error Resolution - Employment Tax Returns.

Scope

The instructions contained in this text are used by Error Resolution System (ERS) examiners to correct errors made by taxpayers, their representatives, or Business Master File (BMF) Submission Processing (SP) Campus Operations.

Material Changes

(1) IRM 3.12.13.1- Program Scope and Objectives- Added internal controls information as outlined in the Internal Control Memo. As a result some information may have been moved or renumbered.

(2) IRM 3.12.13.1.1- Background- Added internal controls information as outlined in the Internal Control Memo. As a result some information may have been moved or renumbered.

(3) IRM 3.12.13.1.2- Authority-Added internal controls information as outlined in the Internal Control Memo. As a result some information may have been moved or renumbered.

(4) IRM 3.12.13.1.3- Responsibilities-Added internal controls information as outlined in the Internal Control Memo. As a result some information may have been moved or renumbered.

(5) IRM 3.12.13.1.4- Program Management and Review- Added internal controls information as outlined in the Internal Control Memo. As a result some information may have been moved or renumbered.

(6) IRM 3.12.13.1.5- Program Control- Added internal controls information as outlined in the Internal Control Memo. As a result some information may have been moved or renumbered.

(7) IRM 3.12.13.1.6- Terms/Definition/Acronyms- Added internal controls information as outlined in the Internal Control Memo. As a result some information may have been moved or renumbered.

(8) IRM 3.12.13.1.7- Related Resources- Added internal controls information as outlined in the Internal Control Memo. As a result some information may have been moved or renumbered.

(9) IRM 3.12.13.9- Revised the CCC chart to add new applicable conditions.

(10) IRM 3.12.13.16(1)- Removed "Note" from the procedures.

(11) IRM 3.12.13.16.1(4)c)-Added mail stop for Kansas City Submission Processing Center (KCSPC).

(12) IRM 3.12.13.24.5 (2)a)- Added CCC "Q" to the valid conditions.

(13) IRM 3.12.13.24.5((3)- Revised correction procedures.

(14) IRM 3.12.13.25(2)- Revised Section 02- Form 941, 941-PR and 941-SS Fields Location on the return.

(15) IRM 3.12.13.25.21(1)- Added the words (and subsequent).

(16) IRM 3.12.13.26- Revised Section 03 procedures.

(17) IRM 3.12.13.26.1- Added Revision 2018 to the procedures.

(18) IRM 3.12.13.29.16(3)1)- Added a new "Note" to the procedures.

(19) IRM 3.12.13.29.21- Revised the correction procedures for EC 056.

(20) IRM 3.12.13.29.32(2)(3)- EC 099- Revised the invalid conditions procedures and the corrections procedures

(21) IRM 3.12.13.29.33(3)1)5)- Added a new "Note" to the procedures and revised If/And/Then procedures box number 6.

(22) IRM 3.12.13.29.40(3)(a)- Added Revision 2018 to the procedures.

(23) IRM 3.12.13.29.41(3)a)- Added Revision 2018 to the procedures.

(24) IRM 3.12.13.31(1)- Added "01SRI" to the Section 01 table.

(25) IRM 3.12.13.31.1- Revised Section 01 correction procedures to add Field 01SRI procedures.

(26) IRM 3.12.13.32(1)- Added new field designators to the table.

(27) IRM 3.12.13.32.1 (2)- Added correction procedures for 02PTC.

(28) IRM 3.12.13.36.17- Revised the correction procedures for EC 056.

(29) IRM 3.12.13.36.24- Added EC 095 as a valid error for the Form 943.

(30) IRM 3.12.13.36.26- Added EC 099 as a valid EC for the Form 943.

(31) IRM 3.12.13.36.27(3)b)c)-Added new fields displays to EC 100, new valid TPNC’s and revised If/And/Then procedures. A

(32) IRM 3.12.13.36.29(3)a)- Second If/And/Then table- Revised If/And/Then procedures.

(33) IRM 3.12.13.36.32(3)a)- Revised If/Then procedures to add Revision 2017 to the procedures.

(34) IRM 3.12.38.1(1)- Added new field designators to Section 02- Form 944.

(35) IRM 3.12.13.53.19- Revised the correction procedures for EC 056.

(36) IRM 3.12.13.53.27- Added new EC 095 as a valid EC for the Form 944.

(37) IRM 3.12.13.53.30- Added EC 099 as a valid EC for the Form 944.

(38) IRM 3.12.13.53.31- Added new fields displays to EC 100.

(39) IRM 3.12.13.53.31.(1)(2)(5)6)- Revised Tax Year Rates, added new valid TPNC an revised 02PTC correction procedures.

(40) IRM 3.12.13.53.33(3)a)- Second If/And/Then table- Revised the correction procedures for EC 102.

(41) IRM 3.12.13.56(1)- Added new Section 02 field designator -Form 945, 945-A.

(42) IRM 3.12.13.74(1)- Update Section 02-Form CT-1.

(43) Update Exhibit 3.12.13-3.

(44) Update Exhibit 3.12.13-7.

(45) Update Exhibit 3.12.13-8.

(46) Update Exhibit 3.12.13-9.

(47) Exhibit 3.12.13-12- New exhibit (Terms/Acronyms).

Effect on Other Documents

IRM 3.12.13, dated November 17, 2016 (effective January 1, 2017) is superseded. The following IRM Procedural Updates (IPUs), issued from January 03, 2017 through August 31, 2017, have been incorporated in this IRM: 17U0011, 17U0348 17U0808, 17U1252 and 17U1296.

Audience

Wage and Investment Error Resolution System (ERS) Tax Examiners

Effective Date

(01-01-2018)

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

Program Scope and Objectives

  1. This IRM section provides instructions for Wage and Investment Error Resolution Tax Examiners to correct errors for the returns below:

    • Form 941 – Employer's Quarterly Federal Tax Return

      Note:

      All references to Forms 941, 941-PR, or 941-SS, unless otherwise stated, refer to those forms with Revision Year(s) 2005 through 2010. Also, any Form 941, 941-PR, or 941-SS return with a Revision Year prior to year 2009 should have their lines re-numbered to the 2010 return format per IRM 3.11.13, Employment Tax Returns (Document Perfection).

    • Form 941-PR - Employer's Quarterly Federal Tax Return-Puerto Rico Ogden Submission Processing Campus (OSPC) only.

    • Form 941-SS - Employer's Quarterly Federal Tax Return - American Samoa, Guam, the Commonwealth of the Northern Mariana Islands and, the U.S. Virgin Islands (OSPC only)

    • Form 943–Employer's Annual Tax Return for Agricultural Employees

    • Form 943-PR - Employer's Annual Tax Return for Agricultural Employees (OSPC only)

    • Form 944 (including Form 944 (SP))– Employer's ANNUAL Federal Tax Return, for Spanish filers with U.S. addresses. Form 944-PR and Form 944-SS will no longer be provided to taxpayers. Beginning in 2013 they will have to file Form 944–SP or Form 944. Instructions remain in this IRM because we will still see them for the next few years.

    • Form 945– Annual Return of Withheld Federal Income Tax

    • Form CT-1– Employer's Annual Railroad Retirement Tax Return Cincinnati Submission Processing Campus (CSPC) only.

  2. Purpose: The Error Resolution System (ERS) is a means to resolve errors made by taxpayers and correct errors made during campus processing.

  3. Audience: Tax Examiners in the Input Correction Operation and Error Resolution Section, including:

    • Tax Examining Technicians

    • Lead Tax Examining Technicians

    • Supervisory Tax Examining Assistants

  4. Policy Owner: Director, Submission Processing.

  5. Program Owner: Paper Processing Branch, Business Master File (BMF) Section.

  6. Primary Stakeholders: Other areas that may be affected by these procedures include (but not limited to):

    • Accounts Management (AM)

    • Chief Counsel

    • Compliance

    • Information Technology (IT) Programmers

    • Large Business and International (LB&I)

    • Small Business Self-Employed (SBSE)

    • Statistics of Income (SOI)

    • Submission Processing (SP)

    • Taxpayer Advocate Service (TAS)

    • Tax Exempt and Government Entities (TEGE)

  7. Employees are reminded to consider any ethical issues while following these instructions.

Background

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

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

  3. Once you access a record and it displays on the screen, you must resolve the error by either:

    1. Fully correcting the record

    2. Placing the record in suspense until additional information is received

    3. Rejecting the record from pipeline processing

  4. Corrections will include correcting errors in editing or transcribing, or in the case of a taxpayer error, notifying the taxpayer of the error on the return.

  5. This IRM is your main source of information for correcting the record on the screen and the related return. However, you may also find some procedures in IRM 3.12.38, Error Resolution-BMF General Instructions, which contains procedures for correcting records on the screen, document control, inventories and management reports within ERS and Rejects.

Authority

  1. Authority for these procedures is found in section 6201(a) of the Internal Revenue Code and its corresponding Treasury regulations.

Responsibilities

  1. The Directors of Ogden, Cincinnati, and Kansas City Submission Processing campuses are responsible for monitoring operational performance for the BMF Submission Processing campuses.

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

  3. The Team Manager/Lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.

  4. The Team Employees are responsible to follow the instructions contained in this IRM and maintain updated IRM procedures.

Program Management and Review

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

  2. Program Reports: System control reports are on the Control-D WebAccess (CTDWA) and a general listing of the reports are located in IRM 3.12.38, Error Resolution, BMF General Instructions.

  3. Program Effectiveness is measured using the following:

    • Embedded Quality Submission Processing (EQSP)

    • Balanced Measures

    • Managerial reviews

  4. Annual Review: Federal Managers Financial Integrity Act (FMFIA)

Program Controls

  1. Quality Review conducts a statistical valid sample size review of completed work to ensure IRM guidelines are followed

Terms/Definitions/Acronyms

  1. For Terms, Definitions and Acronyms see Exhibit 3.12.13-12.

Related Resources

  1. The following is a list of related resources:

    • Servicewide Electronic Research Program (SERP)

    • Submission Processing Design Center (SPDC)

    • Integrated Data Retrieval System (IDRS)

♦BMF Consistency Items♦

  1. The purpose of this initiative is to achieve consistency in the BMF ERS processing IRMs.

  2. Topics for the Business Master File (BMF) Consistency have been identified and developed as a coordinated effort between Cincinnati, Ogden and the Paper Processing Branch BMF Code and Edit/ERS Section.

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

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

♦Error Inventory Report♦

  1. The Error Inventory Report is generated at the beginning of each day to show the blocks by the block control number and block document locator number (DLN) in numerical order. Each batch will be on separate pages. Blocks received from Block Out of Balance (BOB) Correction will be listed separately.

  2. A copy of the Error Inventory Report can be placed on the carts of documents and used as a charge-out. This will help to determine when a cart is completed.

  3. The first line of the Error Inventory Report will show the number of working days the records on that page have been in the Error Inventory. This will enable work left from a previous day to have priority.

♦Workable Suspense Inventory Report♦

  1. Each day the Workable Suspense Inventory Report will be furnished showing the records by Program in Document Locator Number (DLN) order for various statuses. Separate pages with totals for each program will be provided.

  2. The report will show the number of working days the records have been in the Workable Suspense Inventory. This is on the first line of the report and will allow priority to be given to the older work.

♦Employment Return Editing--General♦

  1. Edit the applicable code(s) in the designated area(s) on each of the following returns:

    • Form 941/ 941-PR/941-SS (Rev 2005 and subsequent)

    • Form 943/943-PR

    • Form 944/944(SP)/944-PR/944-SS (PR and SS 2011 or prior only)

    • Form 945

    • Form CT-1

  2. Any changes to the name control, employer identification number (EIN), or address (including the city, State or ZIP Code) on all employment returns are edited above the printed location. See chart below for editing all Forms 941, 943, 944, 945 and CT-1:

    Fields Field Location
    Computer Condition Code Form 941, Form 941-PR, Form 941-SS.

    (Rev 2005–2015) Directly beneath the last line in the center of the bottom margin of the return on page 1.


    Form 943, or Form 943–PR (all revisions). Directly beneath the signature line in the center of the bottom margin.

    Form 944, Form 944(SP), Form 944-PR, Form 944-SS (all revisions). Beneath line 14 in the center of the bottom margin

    Form 945 (all revisions) Directly beneath the signature line in the center of the bottom margin

    Form CT-1 (all revisions). Directly beneath the signature line in the center of the bottom margin
    Correspondence Received Date (CRD)
    All returns - Upper left corner of the return in the top margin.

    Note:


    Code and Edit is no longer editing CRD.

    Received Date
    All returns - Body of the return
    Schedule Indicator Code (SIC)
    Forms 941, 941-PR, 941-SS
    (Rev 2005 and subsequent) On the right margin, opposite the dark Part I line.

    Forms 943, or 943-PR (all revisions). On the right margin opposite line 1.

    Forms 944, 944(SP), 944-PR, or 944-SS (all revisions). On the right margin opposite line 1.

    Form 945 (all revisions). On the right margin opposite line "A" .

    Form CT-1 (all revisions) SIC is not edited on the form.
    ERS Action Code
    All returns - On the bottom margin in the left corner.
    Tax Period
    Forms 941, 941-PR, 941-SS
    (Rev 2005 and subsequent) Above the "Report for this Quarter." box located to the right of the entity.

    Forms 943, or 943-PR (all revisions). Located in the entity portion of the return on the upper right side.

    Forms 944, 944(SP), 944-PR, or 944-SS (all revisions). Above the "Who Must File Form 944" box located to the right of the entity

    Form 945 (all revisions) Located in the entity portion of the return on the upper right side.

    Form CT-1 (all revisions) Located in the entity portion of the return on the lower right side.
    Third Party Designee (when the "YES" box is checked) No editing is needed.
    Paid Preparer's Tax Identification Number (PTIN) All returns - As needed, in the designated box located at the bottom of the return beneath the taxpayer's signature
    Paid Preparer's EIN All returns - As needed, in the designated box located at the bottom of the return beneath the taxpayer's signature
    Paid Preparer's Telephone Number All returns - As needed, in the designated box located at the bottom of the return beneath the taxpayer's signature.
  3. All returns must be in the current processing years acceptable line format, for Service Center Recognition/Image Processing System (SCRIPS) or Integrated Submission and Remittance Processing (ISRP) processing, as a Rev 2009 and subsequent.

  4. All lines with amount entries should be edited in dollars and cents.

  5. ERS tax examiners will leave a working trail on BMF returns for the following:

    1. Corrections to the name control or EIN on the front page of the return

    2. Taxpayer Notice Code (TPNC) 90,

    3. The tax period, or any changes to the tax period

    4. Corrections to the tax computations

    5. Any non-suspense correspondence letters (3875C, 086C, etc.)

  6. To indicate to data capture (SCRIPS or ISRP) a correction change or deletion of a line entry, Code and Edit shows next to the line the assigned edit mark for the action they are trying to perform.

    1. ISRP processes Form 941 returns with attachments (other than Form 941, Schedule B), delinquent Form 941 returns, all Form 941-PR or 941-SS returns (through OSPC only), 943, 943-PR, 944 or 944(SP), 944-PR, 944-SS, 945, or CT-1 returns.

    2. SCRIPS processes Form 941 returns for the current year (including prior Revision 2005 through 2015).

  7. Error Resolution examiners must be able to comprehend any edited changes shown on a return. The tables below show the current acceptable edit marks on employment returns, and their meaning.

    Note:

    CODE and EDIT ----- EDIT MARK DESCRIPTION
    For Form 941 (Rev 2005 and subsequent) processed through SCRIPS

    If return shows a foreign address, use the ISRP edit marks as shown below:

    Edit Mark Description
    Asterisk
    Inside the Entity Area Only: Used to show a change to the Employee Identification Number (EIN)
    Outside the Entity Only: Used to delete tax data or to indicate that an item is not to be transcribed
    Note: The asterisk must be placed to the left of the entry, and as close as possible to the entry.
    Circle Used to delete a received date only.
    Line-through Inside the Entity Area only: Use to delete data

    Note:

    Unless otherwise specified, a line-through should always be a horizontal line.

    Underline Used to identify a name control, or to indicate that a received date, (other than an IRS stamped date), is to be transcribed
    Decimal Point Used to indicate the separation of dollars and cents if no distinction has been made by the taxpayer.
    Zero, Dash, or None Zero, "Dash" , or "None" are considered valid entries except when specific instructions require editing of an entry.
    Edit Marks Made by Other IRS Functions Edit Marks entered by another area, e.g. such as Compliance or Accounts Management (Adjustments), are not to be re-edited except to place the marks in the correct area.
    Rocker Used to indicate that the amount was paid with the return.

    Note:

    A return with remittance are now processed separately. Examiners should circle (or indicate an asterisk to the left of the rocker, if SCRIPS), any rocker on a return.

    Percent Sign (%) Used to indicate the presence of a "Care of Name" or address
    "X" Used to delete tax data or to indicate that an item is not to be transcribed.
    "/" Used when deleting a form or schedule not being transcribed.
    Arrow Used to indicate the correct placement of a misplaced entry or may be used if the misplaced item is close to the correct line and there is no question where the entry belongs.

    Note: A double arrow may be used if the same figure is to be transcribed in two different places.
    Vertical line or decimal point Used to indicate the separation of dollars and cents if no distinction has been made by the taxpayer.
    "c/o" Used to indicates the presence of a "Care of Name" or Care of address.
  8. When a Code and Edit examiner initiates correspondence, they are required to show Action Code 211 (or the applicable code) in the lower left hand corner of the return. If Letter 21C is used, (Form 13195) C and E examiners are also required to notate the paragraph, and if appropriate, the fill in number(s) followed by the inserted fill-in information. For example: "211–P(19)$100.00 (20)$50.00"

  9. For Form 941 returns, documents processed through SCRIPS will be received in ERS "unstapled" and sorted into "Perfect" (documents without attachments) and "Imperfect" (documents with attachments and/or envelopes) batches.

    1. When pulling documents from a "Perfect" truck or batch, ensure that all pages are pulled (page 1, 2 and/or Schedule B).

    2. When pulling documents from an "Imperfect" truck or batch, check the upper right corner for a seven digit sequence number. Then, go to colored folder at the back of the gusset and pull the corresponding attachments. Staple any attachments to the return before routing.

♦Types of Errors♦

  1. ERS will identify errors according to type and priority. The record heading will show the type of error.

  2. This IRM will furnish the procedures to be used for resolving the displayed errors. However, there may be records where the tax examiner finds that programming has not furnished a section or Field needed to resolve an error. This should be reported to the Headquarters for correction.

  3. The tax examiner will enter the section using Command Code (CC) GTSEC, and enter the missing data.

    1. Priority I (Action Code Errors) -When an Action Code is assigned to a return, it displays as a Priority I error.

    2. Priority II (Section Errors) -An error detected by SCRIPS or ISRP displays as a Section Error, or

    3. An alpha transcribed in a numeric Field or vice versa and a section with variable length Fields containing an erroneous size Field displays as a terminus section error.

    4. Priority III (Field Validity Errors) -Any Field failing to meet the requirements for that Field displays as a Priority III error.

    5. Priority IV (Error Code–Math and Consistency Errors) —When a record is assigned an error code because of a math error or an inconsistency between Fields, it displays as a Priority IV error.

  4. There are instances when a tax examiner may correct a higher numbered priority error causing a lower numbered priority error to display.

♦Action Code Errors (Priority I)♦

  1. All records that are assigned an Action Code by the Code and Edit function will be displayed as a Priority I error. These errors and the correction procedures are explained in this section.

  2. If the Action Code is valid, it will be placed in the Suspense Inventory.

  3. If the Action Code is invalid, it will be placed in the Error Inventory.

♦Error Inventory Correction Procedures♦
  1. The Error Screen display will show:

    • Document Locator Number (DLN)

    • Taxpayer Identification Number

    • Name Control

    • Processing Date

    • ERS Status Code

    • Command Code

  2. The items listed above are displayed in the header portion of each error record. Previously assigned TPNC are also displayed in the header information.

  3. Before making corrections to the screen display make sure:

    1. The DLN of the screen display matches the DLN of the document.

    2. The taxpayer's entries are on the correct lines of the tax return.

    3. All coding and transcription for errors in each section are reviewed and corrected as needed.

    4. All sections and fields have been transcribed.

  4. When you make a correction to the screen display, also correct (edit) the tax return to maintain an audit trail. For others who may work with the return in the future, the editing may provide insight to the document's processing history. For each correction made to the taxpayer's figure on the return:

    1. You will place an "X" beside the incorrect data on the return and write the correct data to the left or above it.

    2. If the taxpayer does not have the required entry on the return completed, place an "X" beside the missing entry. Enter the correction to the left of the "X" .

  5. If the missing information is found elsewhere on the return, edit (as required) it to the correct line.

  6. Money Amounts: When you correct a screen display, review the screen before transmitting to ensure that money amounts are being transcribed in dollars and cents.

  7. Check the displayed Action Code for validity. Also check the return to verify that the code assigned is appropriate, and whether it has been transcribed properly. Remember to use CC GTSEC prior to clearing the data from the terminal (Action Code 001).

  8. When the BOB Resolution function has added a document to a block by entering only the name control and taxpayer identification number (TIN), Action Code 001 will be computer generated. The remainder of the record must be entered by ERS.

  9. Enter CC GTSEC for each record section that should contain data. Add the required data and transmit for each section.

  10. When all of the sections have been entered, clear the Action Code by entering "C" in the Clear Code Field.

  11. If suspense action is required, overlay the Command Code with CC SSPND and enter the correct Action Code.

  12. If no suspense action is needed, enter "000" in the Clear Field and transmit.

♦Suspense Inventory Correction Procedures (Reject Procedures)♦
  1. Determine if the record can now be resolved with the information available. If so:

    1. Make the corrections to the record using CC DLSEC or GTSEC.

    2. After all corrections are made and transmitted, enter a "C" in the Clear Field and transmit.

    3. If there are other errors in the record, they will be displayed.

    4. If the error is resolved, release the document to files.

  2. In IRM 3.12.13, general "No Reply" procedures are shown below under "Priority I Error, Action Code 21X, Correspondence" . Any correspondence procedures for a specific Field or error condition are shown in the table under "Correction Procedures" or under a special subsection, "Rejects/Suspense procedures" for the specific Field error or error code condition.

  3. If the error cannot be resolved without additional information or cleared:

    1. Re-suspend with the appropriate Action Code, using CC SSPND.

    2. Enter the new Action Code and date on both copies of the Charge-Out (Form 8161 or Form 4251).

      Note:

      A new Charge-Out is not issued for the re-suspended record.

    3. Give the return with attached Charge-Outs to the Suspense Documents Unit.

  4. A record may also require rejecting from ERS for reinput or voiding.

    1. A record being reinput may use the same DLN or a new DLN. Notate the current Charge-Out and a new Charge-Out will be issued for the rejected document. Give the return to the Suspense Document Unit. On the screen, use the appropriate CC RJECT or NWDLN and enter the appropriate "Rejects" Action Code.

  5. Priority I Error, Action Code 21X, Correspondence

    Note:

    If correspondence is being generated to secure only the signature, use Action Code 225, or for International returns, Action Code 226.

    • Status 321: If a reply is available, follow the instructions within the taxpayer's reply before clearing the Priority I Error. If the correspondence results in No Reply, or the correspondence is undeliverable and returned, initiate the following general procedures before clearing the Priority I Error:

      If Then
      The return is claiming a refund, Edit Computer Condition Code (CCC) 3 and CCC X. Then, continue to process.
      The return is not claiming a refund, Edit CCC 3 and continue to process.
    • Status 421: Follow instructions in the reply before clearing the Priority I Error.

  6. Priority I Error, Action Code 310, Statute Control

    • Status 331 or 431: Document will be furnished to the tax examiner with instructions from Statute Control Unit. If the Statute Control Unit requests that the record be voided to them for non-remittance documents, use "RJECT 640" ; and for remittance (including Remittance Processing System (RPS)) documents use "NWDLN 640" and the DLN of the Payment Posting Voucher (Form 3244) applying the remittance to the year and Master File Tax (MFT) of the voided Statute document.

    • If the Statute Control Unit indicates clearance, use CC GTSEC for Section 01 and verify the tax period in Field 01TXP. Then, enter CCC "W" in Field 01CCC for the applicable employment return. Transmit and clear the Priority I Error with the "C" Clear Code.

  7. Priority I Error, Action Code 320, Entity Control

    • Status 332 or 432: Document will be furnished to the tax examiner with instructions from Entity Control. Follow instructions from Entity Control before clearing the Priority 1 Error.

    • Enter the correct Fields using CC GTSEC for Section 01 if the return was referred to Entity for the name control or EIN.

  8. Priority I Error, Action Code 33X, Review/Routing to Criminal Investigation Division (CID)

    • Status 333 or 433: Document will have been referred to CID before distribution to a tax examiner.

    • If instructed to void the record to refer a Form 941, 943, 944, 945, or CT-1 to CID, use CC RJECT or NWDLN, Action Code 640, and follow CID instructions. NWDLN 640 is for voiding a return with a remittance. The new DLN is the Form 3244 DLN posting the remittance to the year and MFT of the voided document sent to CID or Unidentified Remittance File (URF) if CID instructs that the money is to be applied to the URF. Follow CID instructions before clearing a Priority I Error or continuing to process the return.

  9. Priority I Error, Action Code 34X, Routing-Accounting

    • Forms 94X should be returned by Accounting when given to the tax examiner to work.

    • Tax examiner should follow instructions furnished by Accounting before clearing the Action Code.

  10. Priority I Error, Action Codes 35X, KIF/MFTR_/BMFOL Research

    • Action Code 351, Status 435 indicates the Key Index File (KIF) was not available when the record was on the Error Inventory.

      If Then
      Through research an EIN is located, Enter in Field 01EIN after using CC GTSEC for Section 01.
      Through research an EIN is not located, Follow instructions in IRM 3.12.13 for referral of the document to Entity for an EIN.

      Note:

      Leave a working trail

    • Action Codes 352, 354, or 355, Status 335 or 435: If after researching you are unable to resolve, re-suspend to Entity, Action Code 320.

    • Action Code 353 will not be used on Form 941, unless correspondence is necessary and there is no address.

  11. Priority I Error, Action Code 360— Other In-House Research

    • Status 336 or 436: Document and instructions from other area will be furnished to the tax examiner. Follow instructions furnished by other areas of the Submission Processing (SP) Campus using CC DLSEC or GTSEC before clearing Priority I Error.

  12. Priority I Error, Action Code 410— Assistance Needed

    • Clear the Priority I Error with the "C" Clear Code, so that other errors in the record might display.

  13. Priority I Error, Action Codes 420 through 460— Management Suspense

    • Management may direct that you work or re-suspend the record. If re-suspending, use CC SSPND and the Action Code as directed.

    • When instructed to work the record, clear the Priority I Error with the "C" Clear Code, so if other errors exist in the record they can be displayed.

  14. Priority I Error, Action Code 490— System Problem

    • Instructions are needed from the Computer Branch through your supervisor for working. If instructions are not furnished for Status 349, you may be advised to re-suspend, using CC SSPND 490.

      Caution:

      Once you clear Action Code 490, if no other error exists in the record, the record will go to "Good tape" . It is imperative to await instructions from the Computer Branch.

  15. Priority I Error, Action Code 51X - Status 451 or 351

    • Suspend record with Action Code 51X to initiate a special search. The Charge-Out issued for missing document may be used for the initial search. It may also be used for subsequent searches by marking "Second Request" , "Third Request" , etc. on the Charge-Out returned from files.

    • Special search is continued as indicated in IRM 3.12.38, BMF General Instructions, until document is located or record is rejected from ERS with Action Code 670.

      If Then
      The missing document is a non-remittance document, Use RJECT 670.
      The missing document is a remittance document, Use NWDLN 670 and the DLN of Form 3244, Payment Posting Voucher, for the payment.
      You are unable to designate where the remittance should be applied, Use NWDLN 670 URF. See IRM 3.12.38, BMF General Instructions.
  16. Priority I Error, Action Code 6XX - Rejects

    • If suspended to Workable Suspense with Action Code 6XX, review the document to see if you agree with the recommended reject action. If so, delete with CC RJECT or NWDLN and the appropriate Action Code. If you determine not to delete the record, clear the Priority I Error with the Clear Code "C" deleting the Action Code so that any other errors that might exist can display.

  17. Priority I Error, Action Code 700 - Duplicate Block DLN

    • Clear the Priority I Error with the "C" Clear Code so that other errors in the record might display.

  18. Priority I Error, Action Code 900 - Unpostable Records

    • The literal for the Action Code 900 will include the Unpostable Code. For Action Code 900 returns, determine if the record can be resolved. If so, use CC GTSEC for the desired section(s) and make the correction(s). After all corrections are made and transmitted, enter a "C" in the Clear Field. Once the Action Code 900 is cleared, all other errors on the record will be displayed for correction. If no other errors exist, the record will clear the screen. The record has never posted to Master File.

    • Fields displayed will be as processed prior to being an Unpostable. The record may contain editing and transcription errors. All Clear Codes and TPNCs assigned when previously processed will have been deleted from the record and will need to be assigned again, if still applicable.

    • If the error on the Unpostable Record (Action Code 900) cannot be resolved, re-suspend the record using CC SSPND with the appropriate Action Code. Notate the Action Code and date on the Charge-Out with explanation and send the return and Charge-Out to the Suspense Documents File.

  19. For Action Codes 3XX —Status 33X: If circumstances should warrant re-suspending the document, (e.g., requested information is not available), the tax examiner will need to be advised to re-suspend the record, Action Code 3XX. If this situation occurs often, the suspense period should be reviewed with Headquarters.

    • Should the document not be available for a record on the Workable Suspense Inventory, Action Code other than 510, the Suspense Document Unit will contact the Supervisor who will conduct a special search within ERS and, if unsuccessful, indicate document missing.

    • The tax examiner working the record will re-suspend the record with Action Code 511 initiating a search for the document. It will be necessary to use CC ESTAB to initiate a Form 4251, Return Charge-Out, to obtain the document from Files.

    • If the Form 4251 comes back without the document, wait until the suspense period for Action Code 511 expires. Then, re-submit the original Form 4251, Return Charge-Out, indicating on it "SPECIAL SEARCH" and re-suspend the record with Action Code 512.

♦Section Errors (Priority II)♦

  1. There are two types of Priority II errors:

    • ISRP

    • TERMINUS

    .

♦Integrated Submission and Remittance Processing Errors (ISRP)♦
  1. ISRP may detect specific types of errors upon validation. The display of an ISRP error includes a one character code to identify the type of error. The errors are as follows:

    • "1" –Split screen transmission: The Key verifier attempted to change check digit, or

    • "2" –is not used at this time.

    • "3" –Invalid Section ending point.

    • "4" –Invalid Field length.

  2. When displayed, all of the input Fields show for the section in error except for the Remittance amount in Section 01. Transcribed data will be present. Computer generated data will not be present.

♦Correction Procedures♦
  1. Check all Fields of the section and verify that the Fields are entered as coded.

    If Then
    No correction is needed, or once the section is correct, Transmit.
    The section needs to be deleted, Enter CC DLSEC with the section number.
♦Terminus Errors (Priority ll)♦
  1. This error is caused by a section with variable length input fields containing an erroneous size field.

  2. When displayed, this type of error will show all input fields of the terminus section. Transcribed data will be present. Computer generated fields or the remittance field for Section 01 will not be present.

♦Correction Procedures♦
  1. All fields present for the section must be examined and the necessary correction(s) made to all the fields.

    If Then
    The section needs to be deleted, Use CC DLSEC to delete the section.
    No corrections are needed, The display can be transmitted which indicates the section is correct as displayed.

♦Field Errors (Priority III)♦

  1. Any field that does not meet its requirement(s) will be shown as a Priority III error. Some reasons for this type of error are:

    1. Non-alphabetical character in an alpha field,

    2. Dollar amount exceed maximum field length allowable,

    3. Blank space in a numeric field,

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

    5. Non-numeric character in a numeric field, or

    6. A required field is blank.

  2. All fields with a Priority III error will be displayed in the order encountered in the record. The Action Code and TPNC will never be displayed as a Priority III error.

  3. When a dollar amount exceeds maximum Field length allowable, process the return as follows:

    If Then
    A money amount on a return exceeds the maximum Field length allowable,
    1. Enter the maximum amount allowable on the original return.

    2. Recompute the tax data and enter the corrected amount(s) on the screen display and the return. DO NOT SEND A TAXPAYER NOTICE CODE.

    3. Annotate on the original return, "Dummy Return-Prepared Due to Overflow Document."

    4. Prepare a "Dummy Return" by computing and entering the remaining overflow money amount(s) for the appropriate Fields. Enter Entity information from the original return.

    5. On the top of the return, write "Prepared from Overflow Return" . Copy the DLN from the original return. Enter CCC "G" in Field 01CCC. In the signature area write, "Signature on Original Return"

    6. Route to Receipt and Control to have the "Dummy Return" numbered and processed.

♦Consistency/Math Errors (Priority IV)♦

  1. These errors will be displayed with an Error Code assigned to them for the specific error in ascending numerical order. The screen display will show the Error Code assigned and the Fields needed to make the necessary correction.

  2. The blank "NC" will be displayed for the entry of a TPNC for all Math Error displays. Multiple TPNCs may be entered if you have multiple lines labeled "NC" .

  3. The blank Field "CL" will be displayed for the entry of a Clear Code on records where the possibility exists that a change or correction may not be needed.

  4. The "C" Clear Code does not permit any other corrections to the record after it is transmitted to clear the screen. All errors must be resolved by eliminating the error, or entering the Clear Code or a TPNC.

  5. If an unworkable situation exists, suspend or reject the document with the appropriate Action Code.

♦Action Codes♦

  1. The ERS Action Code indicates that specific information is missing, suspended or that the record is to be rejected from processing.

  2. The code will have sufficient detail to indicate if:

    1. Correspondence is to be sent to the taxpayer, or

    2. Specific in-house research or action is required.

  3. Action Code 001 will be computer generated when the BOB Resolution function has added a missing document by inputting only the TIN and the name control. Follow corrective procedures in IRM 3.12.13.5.1, for Priority l Errors.

  4. Code and Edit tax examiners assign Action Codes to numbered returns if they determine the document is unprocessable. Unprocessable documents require additional information or manual intervention for correction.

  5. An Action Code is entered in the lower left margin of the return.

    Note:

    When a Code and Edit examiner initiates a Letter 21C (Form 13195) for a Form 941 which will be going through SCRIPS, (or Form 941-PR or 941-SS going through ISRP), they are also required to notate the paragraph, and if appropriate, the fill in number(s) followed by the inserted fill-in information after the Action Code 211.

  6. The presence of a valid Action Code other than AC 001 will place the record in the applicable Suspense Inventory, "Workable" or "Unworkable" .

  7. If an Action Code assigned by Code and Edit is invalid, incomplete, or "001" , the record will be assigned to the Error Inventory for correction or deletion of the code.

  8. Only one Action Code may be assigned at a time to a record. The priority of the Action Codes will be 310, 320, 4xx, 6xx, 3xx, and 2xx.

  9. An ERS tax examiner may enter an Action Code on a record, delete or correct an invalid code, or may overlay the present Action Code with another to re-suspend or reject the record from ERS. This is done by entering a valid Action Code with CC SSPND, RJECT or NWDLN. IRM 3.12.38, BMF General Instructions, also explains these codes.

  10. An ERS tax examiner entering a valid Action Code with the CC SSPND will be clearing the record from the screen and placing the record in the Workable Suspense or Unworkable Suspense inventory.

  11. A tax examiner entering a valid Action Code with the CC RJECT will be rejecting the record from ERS. Generally, Service Center Control File (SCCF) will be automatically updated for the rejected records.

  12. A tax examiner entering an Action Code with the CC NWDLN will be rejecting the record from ERS and establishing the new DLN under which the record is to be reinput.

  13. See Exhibit 3.12.13-2 for a list of all valid Action Codes.

♦Error Codes♦

  1. An Error Code (EC) is computer generated to a record and assigned in numerical order.

  2. Error Codes display by priority with the lowest number error codes first.

  3. An Error Code requires that one of the following actions be taken:

    • Correct the invalid Field/math condition.

    • Assign a TPNC in the appropriate Field.

    • Suspend the document with the appropriate action code.

    • Verify and clear the error with a "C" code in the appropriate Clear Field.

♦Command Codes (CC)♦

  1. The CC needed for correcting the Error Inventory and the Workable Suspense Inventory are briefly described below.

  2. Any CC permitted by the Employees Security File will be available.

  3. CCs are used to tell the system what function to perform.

  4. CCs must be entered in a valid format, otherwise an error message will display.

  5. Correct the data entered with the command code and transmit.

    Command Codes

    1. BMFOL - Used to review return filings, freeze codes, return information, transactions etc. posted to the Master File.

    2. CRECT - Will be displayed with all error displays.

    3. DLSEC - Used to delete a section of a record.

    4. ENMOD - Used to research for a name control.

    5. ERINV - Used to research a DLN or TIN on ERS.

    6. ERVOL - Used with a Status Code to display the number of ERS records in the current Workable Inventory.

    7. 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.

    8. GTRECQ - Used to retrieve and correct a record selected for quality review.

    9. GTRECW - Used to retrieve and correct an error record which has been erroneously worked. Can be used just after a record has been worked as well as after a block has been completed.
      REMEMBER: GTRECW can only be used on the day that the record or block was worked.

    10. GTSEC - Used to obtain the display of any section of a record in process.

    11. INOLE - Used to research for a name control, filing requirement, employment code, or address.

    12. NAMEE/NAMEB - Used to perform a search to match the data entered to information on the National Accounts Index (NAI), and returns EINs of possible matches.

    13. NWDLN - Used to change (renumber) the DLN and MFT of the record and reject the record.

    14. RJECT - Used to reject a record from ERS.

    15. RTVUE/BRTVU - Used with definers to provide access to data that was either computer generated or for individual line items transcribed for most BMF returns.

    16. SSPND - Used to enter an Action Code and place a record in suspense.

    17. TRDBV - Used with IDRS for read only access to Individual Master File (IMF) and BMF filed tax return data received through the Electronic Filing System (ELF), Modernized E-File (MeF) and paper.

    18. TRERS - Used as an extension of CC TRDBV and was developed for ERS processing. CC TRERS functions the same as CC TRDBV with the added ability to select a return based on the DLN of the latest CC GTREC command executed by the IDRS user without entering perimeters for the CC TRDBV command.

    19. TRPRT - Used to generate a graphic (form image) print of an electronically filed IMF or BMF return and schedules. The print will contain original taxpayer submitted data only. No corrections or processing codes will appear on the print.

♦Computer Condition Codes (CCC)♦

  1. CCCs are used to identify a special condition or computation for the computer. CCCs post to the BMF Master File.

  2. These codes are entered on Form 941, Form 941-PR, Form 941-SS, Form 943, Form 943-PR, Form 944, Form 944-PR, Form 944-SS, Form 944(SP), Form 945 and Form CT–1.

  3. The chart below shows the applicable CCCs, their definitions and the related checks.

    Codes Definition Validity Consistency Checks Remarks Returns Valid For:
    B Total Compensation present, and the Social Security and/or Medicare Compensation are exempt. Total compensation Field more than ≡ ≡ ≡ ≡ ≡ ≡
    (ERROR CODE 046)
    CCC B is entered or generated if there is an indication that the reported Compensation are exempt from either Social Security or Medicare tax. Usually the taxpayer indicates an exemption by checking the box on line 4 (e.g. Form 941, Rev 2005 and subsequent), or line 3 (e.g. Form 944, Rev 2006 and subsequent.). For example, when specific Employment Codes ("C" , "F" , or "G" ) are present on the entity, a declaration of law (e.g. a child under 18 years of age), or a declaration based on religious grounds, a non-profit or charity group, etc.

    Note:

    The taxpayer may indicate an exemption by using phrases "Mis-classified employees," "United Transportation Union" , "common paymaster," "minister," "Form 4361" , Form 4029 Exempt"Form 4029 applicable" "child under the age of 18 years of age," etc. Also, if the taxpayer merely indicates their profession on the signature line, it does not qualify as and explanation for claiming a Social Security and /or Medicare exemption.

    Forms 941, 941-PR, 941-SS, 943, 943-PR 944, 944-PR, 944-SS, 944 (SP) only
    D Reasonable Cause for Failure to Pay Timely Must have Received Date
    (ERROR CODE 028)
    CCC D is no longer edited by Code and Edit (see exception below) when a reason is given for the delay in filing a return timely. Issue Letter 1382C (if Code and Edit has not done so) and continue processing the return.

    Exception:

    Secured internally prepared returns: For Secured returns (e.g., returns notated with "Process as Original" with an attached Form 13133) or Prepared returns (e.g., returns notated "6020(b)" or "SFR" (Substitute for Return)), enter the applicable CCC as indicated on the return and/or attached form.

    All
    E Credit Election Cannot be used with CCC F or S Computer Generated

    Indicates the taxpayer checked the "Apply To Next Return" box on the return
    All
    F Final Return Cannot be used with CCC G or E Form 941, 941-PR, or 941–SS
    • Line 15 2014 and 2015

    • Line 17 2012 and 2013.

    • Line 18, Rev 2009 through 2011

    • Line 16, Rev 2005 through 2008.


    Forms 943, 943-PR Check box beneath the entity on the right hand side.
    Forms 944, 944(SP), 944-PR, or 944-SS
    • Part 3, Page 2


    Form 945– Check box beneath the entity on line A.
    Form CT-1 Check box under form tax year.
    All
    G Amended Return

    Note:

    All Forms 941, 941-PR, 941-SS, 943, 943-PR, 944, 944-PR, 944-SS, 944(SP), 945 or CT-1 returns marked (or indicating) amended, superseding, supplemental, etc., should be routed directly to Accounts Management for manual processing.

    1— No other CCCs allowed, except CCC W or 3
    (Field ERROR)
    2— Must have received date
    (ERROR CODE 028)
    3— All Fields must be blank except 01EIN, 01TXP, 01NC, 01RCD, and 01CRD.
    If a return has a TC 59X on the return by Compliance, process as original. All
    J Reasonable Cause for Failure to Make Timely Deposits Cannot have precomputed Failure to Deposit (FTD) penalty
    (ERROR CODE 038)
    CCC J will no longer be edited, if the taxpayer requests abatement for Failing to Make Timely Deposits when the return is submitted. For these returns, send the 1382C letter which will inform the taxpayer of the proper procedure to follow to request abatement, if and when a penalty is assessed. Forms 941, 941-PR, 941-SS, 943, 943-PR, 944, 944-PR, 944-SS, 944(SP), 945 only
    M Misclassified Employees Interest Free Returns   Indicates interest free adjustments for "Misclassified Employees" at top of the return. Forms 941, 941-PR, 941-SS, 943, 943-PR, 944, 944-PR, 944-SS, 944(SP), CT-1
    O Module Freeze   Pre-Settlement Manual Refund Issued, (Form(s) 3753, Manual Refund Posting Voucher, 5792, Request for IDRS Generated Refund, or 12857, Refund Transfer Posting Voucher) All
    Q F8974   Indicates F8974 is attached to the F941, 943 and 944. Form 941, 941-PR, 941-SS, 943, 943-PR, 944 and 944SP.
    R A Reasonable Cause for Failure to Timely File Must have Received Date
    (Field ERROR)
    - CCC "R" is no longer edited by Code and Edit (see exception below) when a reason is given for the delay in filing a return timely. Issue Letter 1382C (if Code and Edit has not done so) and continue processing the return. Exception: For Secured returns, and Prepared returns.

    For Secured returns (e.g., returns notated with "Process as Original" with an attached Form 13133) or, Prepared returns (e.g., returns notated "6020(b)" or "SFR" (Substitute for Return)), enter the applicable CCC indicated on the return and/or on the attached Form 13133.
    All
    S Overpaid return–Application to Subsequent Quarter Not Specified Cannot be used if CCC E is present
    (Field ERROR)
    Computer Generated: Indicates that the taxpayer:
    • Checked the "Refunded" box on the return, or

    • Did not check either the "Refunded" box or the "Apply To Next Return" box on the return.

    All
    T Seasonal Intermittent Filer Seasonal filer box in Part 3, Page 2.   Form 941, 941-PR, 941-SS.
    W Cleared by Statute Control Must be present on Statute cases
    (ERROR CODE 001)
    Statute clearance must be within 90 days of the Expiration Statute date. All
    X Return Settlement Generates TC 570 Freeze to hold credit If present, Credit Elect analysis will be bypassed for Form 941. All
    3 No Reply Received—Suppress Credit Interest Must not contain Correspondence Received Date (ERROR CODE 073) Used to suppress credit interest when no reply is received from the taxpayer or their representative to correspondence All
    4 Return prepared by IRS under Internal Revenue Code (IRC) Section 6020(b). Cannot contain CCC R Return will have "Prepared under 6020(b)" All
    7 Reasonable Cause Claimed-Relief Denied 1– Received date required (Field ERROR)
    2— Cannot be used if CCC D or R,
    (ERROR CODE 028)
    No longer edited by Code and Edit function. All

♦Taxpayer Notice Codes (TPNC)♦

  1. When a math error involves a tax liability or balance/overpayment Field, a Taxpayer Notice Code (TPNC) is used. See Exhibit 3.12.13-10 or Exhibit 3.12.13-11 for valid TPNCs for all employment tax returns.

  2. The ERS examiner enters a 2 digit code on their terminal screen after the literal "NC" . This code generates an assigned explanation of the taxpayer's error or the ERS correction on the math error notice.

  3. After determining that no other corrections to the record are needed, the TPNC is entered. The presence of a TPNC indicates to the computer that no other corrections will be made to the screen display. Therefore, all corrections must be entered and transmitted for each error condition prior to TPNC assignment.

  4. Whenever a TPNC is assigned, a written history showing the changes made must be entered on the return at the point of change.

  5. Each Math Error has been assigned certain TPNCs which allow the examiner to clear the error. The TPNCs entered in the "NC" Field must be valid for that error or the same as one previously assigned. If a code that is not valid is assigned, the Error Code will redisplay.

  6. Each Math Error display will require a correction to a Field or the entry of a TPNC. The transmission of a TPNC must not be accompanied by any other correction. A TPNC assigned to a Math Error will be displayed with subsequent displays for the record. The Field is used for display purposes only and is not correctable.

  7. A return can have a total of three TPNCs. If more than three codes need to be assigned, use TPNC 90 and list the errors for Notice Review to type and send to the taxpayer.

  8. TPNC 90 is actually a "fill-in" and should be used if more than three codes are to be assigned, or when no other TPNC fully explains the correction(s) made. Beginning in 2014 changes were made to the TPNC 90 Math Error Codes. TPNC 90 literals have been programmed into OnLine Notice Review (OLNR) Retype applications for Notice Review (NR). This addition eliminates the need for the NR tax examiner to manually type the notice literal and reduce potential copying/typing incorrect paragraphs in the notices. For a full listing of the programmed TPNC 90 Math Error Codes and information on how to use the Math Error Codes see TPNC 90 Math Error Code Job Aid.

  9. To delete a TPNC, blank the Total Tax-Taxpayer Field and then re-enter.

  10. Once a code is transmitted to the record, it may be changed in the following manner:

    1. Records not cleared from the terminal: If errors remain after transmitting the TPNC, you can create an error with a higher priority. This causes all "C" ; clear codes and any notice code already assigned on a lower priority error to be deleted from the record. TPNCs will be deleted from the header display. Beginning with the higher Priority IV error created, all subsequent Error Codes will be displayed for resolution, even though they may have been displayed previously.

    2. A correction you make erases an Error Code which you previously cleared with a Taxpayer Notice Code or "C" Clear Code. In this case, the "C" ; or TPNC on this error and all subsequent Error Codes will be deleted. All subsequent Error Codes will be displayed for resolution whether or not they were previously displayed. The TPNC(s) for this error and subsequent Error Codes will be deleted from the header display.

    3. Records which have been worked may be reworked using CC GTRECW.

    4. All TPNCs are erased when a record is suspended with CC SSPND.

    5. Unfinished records from the previous day will contain none of the TPNCs that were assigned to the records that were not completely worked.

♦Clear Code "C" and "000" ♦

  1. The letter "C" is used as a "Clear Code" for the Error Codes (consistency errors) where the error condition is such that the resolution does not require a change to the record as displayed.

  2. The ERS screen display will include a clear Field, labeled "CL" to indicate the possible need of a Clear Code. The Clear Field will always be located to the right of CRECT on the screen display.

  3. Error Codes indicating the possible need of a Clear Code are cleared by either correcting the condition or entering a "C" to indicate no correction is needed. If corrections are required, they must be entered and transmitted prior to entry of the Clear Code "C" . Assure that all corrective procedures have been input as shown under each individual Error Code before entering a "C" in the Clear Code Field.

  4. Clear Code "C" is also used for clearing the Action Code from the screen after corrections for the Action Code have been completed, or as with Action Codes 410 and 700, the Action Code must be cleared initially so other errors in the record can be resolved. The presence of the "C" with a Priority I Error indicates you have made the corrections to the Action Code and now wish to have any other errors on the record displayed.

  5. The "000" is also used as a Clear Code when deleting an Action Code. It will only be used for invalid or erroneous Action Codes and when you have determined there is no reason to suspend the record. The "000" cannot be used in Suspense Correction.

  6. Programming erases all "C" Clear Codes for Error Codes:

    1. When a record is suspended with the CC SSPND.

    2. With Action Codes for the new day's Error Inventory and Workable Suspense Inventory. Unfinished records from the previous day will contain none of the "C" Clear Codes that were assigned to a record that was not completely worked.

  7. Error Codes (including the ones which may require a "C" Clear Code) are numbered and displayed consecutively for correcting. There may be instances when you will create an Error Code with a higher priority than the one(s) you have cleared with a TPNC or "C" Clear Code. When this occurs:

    1. Programming will erase all "C" Clear Codes and TPNCs for Error Codes with a lower priority than the one created.

    2. Beginning with the higher priority Error Code you created, programming will continuously display any Error Code(s) for the record. Displays using the corrected data are apt to be different from those previously displayed.

  8. There may be instances when you will make a correction erasing an Error Code which you previously cleared with a "C" and now the error condition no longer exists. When this occurs:

    1. The "C" Clear Code for this error and all "C" and TPNCs for all subsequent errors in the record will be deleted.

    2. After deleting the "C" and TPNCs, if there are errors remaining on the record, they will continue to be displayed for resolution whether or not they were previously displayed.

  9. The "C" Clear Code will prevent any other corrections to the record to accompany the "C" Clear Code. If a correction must be entered, but you have already transmitted the "C" Clear Code, and the error is no longer displayed, use CC GTRECW to make any corrections.

♦ Modernized e-File (MeF) Filers♦

  1. Form 941 and Form 944 may be filed electronically by MeF.

  2. Beginning with processing year 2014, Form 941, Form 943, Form 944 and 945 can be filed using the Modernized e-File (MeF) program. Form CT-1 is the only employment tax return that continues to be filed on paper only.

  3. When forms are filed electronically, it is corrected in ERS using the same procedures as a transcribed (paper) document. Each of these returns when filed electronically have the following characteristics:

    Form Type File Location Code (FLC) Document Code Address Type Which Campus
    941 MeF 26/27 35/39 Domestic CSPC
    941 MeF 60 35 Foreign OSPC
    941 MeF 78 35 US Possession OSPC
    941-PR/941-SS MeF 78 35 US Possession OSPC
    943 MeF 26/27 43 Domestic CSPC
    943 MeF 60 43 Foreign Address OSPC
    943/943-PR MeF 78 43 US Possession OSPC
    944 MeF 26/27 49 Domestic CSPC
    944 MeF 60 49 Foreign OSPC
    944 MeF 78 49 US Possession OSPC
    945 MeF 26/27 44 Domestic CSPC
    945 MeF 60 44 Foreign OSPC
    945 MeF 78 44 US Possession OSPC

♦Refund Returns- 45 Day Jeopardy and $10 Million Dollar Refunds♦

  1. Document Perfection and ERS are responsible for identifying refunds and initiating requests for manual refunds.

    Note:

    Expeditious processing of refund returns is critical if the 45 day period is about to expire.

  2. Action Code 341 should be input by Code and Edit to show that a manual refund is needed. If these conditions are not identified by C and E, ERS must follow the following criteria:

    If Then
    The processing date is more than 20 days after received date or, the return due date (whichever is later) and the 45 day interest free period is in jeopardy and the refund amount is $25,000 or more

    Note:

    Refund in this instruction means only the amount requested to be refunded to the taxpayer, not overpayments transferred to other tax periods.

    Edit Action Code 341 and route to ERS/Rejects for manual refund.
    The refund is $10,000,000 or more. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

♦Customer Account Data Engine (CADE) 2♦

  1. The Customer Account Data Engine (CADE) 2 Program Office in Headquarters, is charged with the primary goal to implement a single, modernized programming solution which provides daily processing of taxpayer accounts.

  2. The CADE 2 solution is comprised of several components, to modernize the IRS to a daily processing environment with several transition states.

  3. With CADE 2 there will be changes to campus cycles which began with cycle 201201. The new BMF campus cycles are:

    1. Campus Cycle: Thursday - Wednesday

    2. Master File Processing: Friday - Thursday

    3. Notice Review Saturday: Monday (8+ days)

    4. Unpostables: New available Tuesday; Closing Tuesday

  4. BMF transaction posting time frames are outlined as follows:

    1. Transactions will be viewable using CFOL command codes on Saturday following the weekly Master Files processing run on Thursday.

    2. Transactions will be viewable as posted transactions using IDRS command codes on Monday, following the weekly Master File processing run on Thursday.

      Note:

      With the acceleration of the IDRS weekly analysis being performed the weekend directly after the Master File processing on Thursday, transactions will be posted instead of in pending status on Monday.

  5. Cycle posting dates will reflect a format of YYYYCCDD. YYYY will indicate the year. CC will indicate the posting cycle. For IMF transactions, the following values for DD are defined:

    • 01 = Friday

    • 02 = Monday

    • 03 = Tuesday

    • 04 = Wednesday

    • 05 = Thursday

    Note:

    BMF cycle posting dates on BMFOL will continue to reflect YYYYCC. YYYY will indicate the year. CC will indicate the posting cycle. BMF posting cycles in TXMOD will reflect a format of YYYYCCDD. The DD value will be 08.

♦Statute Returns♦

  1. Any Form 941, Form 941-PR, Form 941-SS, Form 943, Form 943-PR, Form 944, Form 944-PR, Form 944-SS, Form 944(SP) or Form 945 with a current processing date equal to or more than two years and nine months after April 15 of the year following the year of the tax period without regard to extensions) or the received date, whichever is later, is a Statute Control document.

    1. Error Code 001 will appear on the screen, unless CCC "W" is present. The CCC "W" indicates the record has been cleared by the Statute Unit.

  2. Any Form CT–1 with a current processing date equal to or more than two years and nine months after March 1st of the year following the year of the tax period or the original received date, whichever is later, (without regard to any extension) is a Statute Control document.

  3. Timely filed returns for tax year 2011 or earlier must be treated as statute returns in year 2015.

  4. If the return has an attachment or stamp indicating a previous clearance by the Statute Control Unit within 90 days of the processing date, then enter CCC "W" in Field 01CCC.

  5. If the return does not have an attachment or stamp as indicated in (4), then take the following action:

    1. Treat the record as unprocessable; Suspend the record with Action Code 310 for statutory clearance.

    2. If working the Error Inventory, return document to the block.

    3. If working the Workable Suspense Inventory, notate the 2nd and 3rd copies of the Charge-Out with Action Code 310, and the current date. Handle the document as instructed for statutory clearance.

  6. The due dates for quarterly Forms 941, 941-PR, 941-SS returns and annual Forms 943, 943-PR, 944, 944-PR, 944-SS, 944(SP), 945 and CT–1 returns are as follows:

    Return Tax Period Due Date
    941/941-PR/941-SS Quarterly April 30th
    July 31st
    October 31st
    January 31st (of the following year)
    943/943-PR Annual January 31st (of the following year)
    944/944-PR/944-SS/944(SP) Annual January 31st (of the following year)
    945 Annual January 31st (of the following year)
    CT–1 Annual Last day of the second month following the calendar year for which the return is intended

    Note:

    A return may be filed on or before the 10th day of the 2nd calendar month following the period if timely deposits were made in full payment of the taxes for the period. This is not applicable to Form CT-1.

♦Examination (Exam)"Funny Box" ♦

  1. The primary objective in identifying tax returns for examination is to promote the highest degree of voluntary compliance. Small Business/Self Employed (SB/SE) Exam will provide support and assist SP with any questionable return identified during processing. Exam has a vast multitude of programs and tolerance criteria already identified in various IRM sections. Exam does not restrict SP with the flexibility to refer questionable returns other than what is currently identified in various IRMs.

♦Criminal Investigation (CI)"Referral" ♦

  1. Criminal Investigation (CI) investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC include willful attempts to evade or defeat the income tax. Criminal tax violations also include the willful failure to collect or pay over tax and false claims for refunds based on bogus return information.

  2. For returns with refund claims of $100,000,000 or more, do the following:

    Caution:

    If there is no indication Code and Edit (C&E) made a copy and sent to CI Referral, then see below.

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

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

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

    5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Other CI Referral Criteria:

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

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

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

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

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

    Note:

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

  4. For all other CI Referral criteria listed in paragraph (3), do the following:

    Caution:

    If there is no indication Code and Edit (C&E) made a copy and sent to CI Referral, then see below.

    1. Make a copy of the return.

    2. Attach Form 4227 to the copy.

    3. Route the copy as indicated in the table below.

    Cincinnati Ogden Kansas City
    Mail Stop 83G, Criminal Investigation (CI) Mail Stop 9001, Criminal Investigation (CI) Mail Stop S2 9000, Criminal Investigation (CI)
  5. Edit an action trail Copy to CI, or CI Referral, or similar language in the lower left corner going vertically up the side of the return.

  6. Continue processing the return.

  7. If CI has stamped the return, no further CI action is required.

  8. If the return fits other criteria (e.g., Frivolous Argument), take appropriate action.

Frivolous Returns and Claims♦

  1. A frivolous argument is used for the purpose of expressing dissatisfaction with the substance, form, or administration of the tax laws by attempting to illegally avoid or reduce tax liabilities. Recognized frivolous arguments made by businesses include, but are not limited to, the examples in IRM 25.25.10Exhibit 3.12.13-1.

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

    If Then
    The return meets any of the conditions identified as a frivolous return. See Exhibit 3.12.13-1.

    Caution:

    If the return shows Action Code 331, and has a Form 4227 attached with the remarks, Refer to Exam FRP for audit after process, continue to next procedure.

    Remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Processing (FRP) for review.
    Examination has selected the return as frivolous, e.g. indicated by an Action Code 331, and a Form 4227 with the remarks, Refer to Exam FRP for audit after processing, Continue processing the return using procedures in IRM 3.12.13. However, do not circle or void the Action Code indicating a frivolous return.

    Note:

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

♦Returns With A Pre-Computed Penalty♦

  1. If a penalty other than a delinquency, late payment or FTD penalty is indicated on a return, (e.g., fraud, Form W–2), and the notation, "3465 Prepared" does not appear on the return:

    1. Prepare a Form 3465, Adjustment Request, to request an assessment of the penalty.

    2. If you are able to determine that a return remittance includes an amount applicable to all or part of the penalty referred to above, then indicate on Form 3465 the portion of the remittance available for application to the assessment.

    3. Enter CCC "X" to freeze the refund until the assessment for penalty posts to BMF.

    4. Note on the return, "3465 Prepared" and route Form 3465 to the Accounts Management (Adjustment) function.

♦Related Forms♦

  1. The following internal forms are referred to in this section. The chart below shows the form number, form title, and use.

    Form Title Use
    941(X), 943(X), 944(X), 945(X), or CT-1(X) Adjusted Employment Return or Claim for Refund To request an adjustment of previously reported Compensation, tips, or withholding( i.e., Federal Income Tax Withholding or Backup Withholding)
    3244 Payment Posting Voucher To apply money
    3465 Adjustment Request To request transfer of credits and money received as remittances
    3696 IDRS Correspondence Action Sheet To initiate correspondence to the taxpayer through the Typing Unit or IDRS
    3893 Re Entry Document Control To identify a block or a partial block of documents which require reprocessing
    4227 Intra -SC Reject or Routing Slip To identify the reason for using the Action Code
    8161 ERS Return Charge-Out To charge out returns on the Suspense List, Rejected Records List and Duplicate Document DLN Register. Input Perfection Branch will also use as a routing slip and history item.
    13195 Form 941, 943, 944, 945 Correspondence Sheet To initiate Letter 21C correspondence to the taxpayer through IDRS
    13596 Reprocessing Return Form is used by Accounts Management resubmitting incorrectly processed returns

♦Perfection of Attachments♦

  1. If the taxpayer writes a question or requests assistance on the return itself, make a photocopy of the question/request and the taxpayer's EIN, name and address. Route this information to the appropriate function.

  2. If unrelated, unanswered taxpayer correspondence is attached to any return, and there is no action indicated on the return for the taxpayer correspondence whether it is an ERS document or not, then detach the correspondence and forward to Accounts Management. Be sure any attachment or photocopy of an attachment, except Schedule B, that is routed contains the taxpayer's name, address, EIN, and received date. Enter the required information, if missing.

♦Correspondence♦

  1. Correspondence records with Action Code 21X will be automatically suspended for a predetermined number of days or until the taxpayer replies, whichever is earlier.

    Note:

    Do not correspond for information on any return "secured by Examination" or 599 return. If unprocessable, treat as a no reply case and follow "no reply" procedures.

  2. Most correspondence is a computer based notice, or a computer generated letter, or a pre-printed letter. All correspondence now reflects a response period within 30 days and the consequences for no reply.

  3. As an ERS tax examiner initiating correspondence, you may:

    1. Use the IDRS Correspondence feature CC LETER which will be available, or

    2. Initiate correspondence by using a Correspondence Action Sheet (Form 13195) as is currently done for the IDRS operator or typist in issuing the actual correspondence.

  4. Review document prior to issuing correspondence to ensure all needed information (including a signature)is requested the first time. Check CC BMFOLI to ensure the return is not a duplicate return prior to corresponding.

    • If the return is posted use CC BRTVU or BMFOLR to see if the return is a duplicate. If it is SSPND 640 to have the return deleted.

    • If it does not match the posted return, enter CCC "G" and continue processing the return as an amended return.

  5. When taxpayer errors are discovered in processing which have caused or will cause processing delays and no other notification is to be sent to the taxpayer, advise the taxpayer of the reasons for the delay.

  6. If the call for action has not been completed in 30 days, an interim reply will be made telling the taxpayer when we expect to complete the required action.

♦Correspondence Imaging System (CIS) Returns♦

  1. Correspondence Imaging System (CIS) is an inventory system for scanning all Account Management (AM) receipts (including Forms 941c or 941-X) into digital images and working the cases from those images.

  2. "CIS" returns are identified with "CIS Image- Do not correspond for Signature" stamped below the signature line or "CIS" annotated on the front of the return.

  3. Follow the instructions below for processing "CIS" returns:

    If And Then
    The "CIS" document has a Form 13596 or Form 3893 attached,

    Note:

    If there is an indication on the return that correspondence has been sent (e.g. CCC "3" is edited on the return) do not route return to Accounts Management (AM). Continue to process return.

    The return is not complete (i.e., missing signature, schedules or forms) 1- Remove the return from the batch,

    2- Void the DLN.

    3- Attach Form 4227 to the return and route to Accounts Management to secure missing information.

    Note:

    Do not correspond for missing information or signatures on "CIS" reprocessable/reinput returns.

    The "CIS" return does not have a Form 13596 attached, The return is not complete, (i.e., missing signature, schedules or forms), Research for prior posting (TC 150 posted)
    1. If TC 150 present and the information is the same, cancel the DLN and treat as classified waste.

    2. If TC 150 is not present, follow normal correspondence procedures

      Note:

      If there is an indication on the return that correspondence has been sent (e.g., CCC “3” is edited on the return), do not route return to AM. Continue processing return.

♦Signature Area♦

  1. A signature and jurat is required on all returns except:

    • Returns prepared under Internal Revenue Code IRC 6020(b). These returns must be signed by a Compliance function representative. If not signed, route the return to Rejects to have the DLN extracted. Then, send the return to:
      Internal Revenue Service
      2970 Market St.
      Mail Stop 5- EO4.114
      Philadelphia, PA 19104

    • Returns prepared by Examination, for example "SFR" (Substitute For Return) or "Substitute Return"

      Reminder:

      Returns secured by Examination do require a signature and jurat.

    • Dummy returns prepared by IRS.

    • Returns filed under IRC 501(d) (Religious or Apostolic Organization).

    • A blank return with a CP139 attached (e.g. notification that Form 941 or Form 940 may no longer be required because four consecutive Form 941 tax years were received with "NO LIABILITY" )

    • Correspondence is attached showing that the taxpayer is responding to an IRS letter.

    • Taxpayer indicates he/she has filed another type of return.

    • It appears that the taxpayer is "IRATE" because he/she has received another blank return after filing a "FINAL" return in the previous year.

    • Tentative returns.

    • Other Federal Agencies.

    • Computer generated returns with computer generated signatures.

    • Electronically filed returns may be identified by the presence of printouts in lieu of an actual return.

    • Returns identified with "CIS Image-Do not correspond for Signature" stamped below the signature line or "CIS" ("Correspondence Imaging System" ) annotated on the front of the return.

  2. Since tax examiners are not expected to be handwriting experts, Regulations allow us to presume that the signature on a return, statement or other document is the true signature of the person who actually signed the document.

    Note:

    A check mark or "X" for the purpose to designate where the taxpayer should sign the return is not considered a valid signature.

  3. Accept a signature declaration (i.e., a signature with a jurat obtained through correspondence) if attached to the return.

  4. A signature of an individual, officer, partner, duly authorized agent, etc. affixed by rubber stamp, mechanical device, or computer generated software to a return is acceptable on Form(s) 941, 941-PR, 941-SS, 943, 943-PR, 944, 944-PR, 944-SS, 945, or CT-1.

♦Use of Fax for Taxpayer Submissions♦

  1. Tax returns can be received via fax as part of return perfection even if a taxpayer signature is required. In circumstances where contact with the taxpayer has been made and documented, faxed signatures are acceptable. For more information about accepting signed taxpayer documents by fax, see the most recent revision of the IRS Policy for Use of Fax, available at http://irweb.irs.gov/AboutIRS/co/dese/memo/48254.aspx

  2. Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to determine which method of contact will be used.

  3. ERS examiners will indicate the fax paragraph on the approved Correspondence Action Sheet to advise taxpayers of the option to fax their response.

    Caution:

    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication. Also, before leaving any messages on a taxpayer’s answering machine, review IRM 11.3.2.7.1, Leaving Information on Answering Machines or Voicemail. Fax procedures contained in IRM 11.3.1.11, Facsimile Transmission of Tax Information, must be reviewed prior to faxing confidential information to the taxpayer.

♦Forms 941, 941-PR, 941-SS Introduction♦

  1. This section provides procedures for correcting Field errors (Priority III) for Form 941, Form 941-PR, and Form 941-SS.

  2. Forms 941, 941-PR, and 941-SS contain Sections 01, 02, 03, 04, 05, 06 and 07 under ERS. Within the introduction for each ERS Section is a table showing the Fields within that section by the Field designator, the maximum Field length, the title of the Field and the location of the Field on the Forms 941, 941-PR, or 941-SS, (if applicable).

  3. Each of the Fields 05A01 through 05A31 represents a day within January. The entry within the Field is the tax liability for that day.

  4. If a dollar amount exceeds the maximum length allowable within a Form 941/941-PR/941-SS Field, see IRM 3.12.13.5.3, for processing procedures.

  5. See Exhibit 3.12.13-3, for a current Form 941 with Field Designators indicated.

♦Forms 941-PR and 941-SS Procedures (OSPC Only)♦

  1. Form 941–PR, Planilla Para La Declaracion Trimestral del Patrono, and Form 941-SS, Employer's Quarterly Federal Tax Return– Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, U.S. Virgin Islands are filed to report Social Security and Medicare taxes only. These forms are filed by employers whose principal place of business is in Puerto Rico, and Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, and U.S. Virgin Islands, respectively.

  2. Any Form 941, 941-PR, or 941-SS return with an address of any U.S. Possession below should be forwarded to OSPC for processing:

    U.S. Possession U.S. Possession
    American Samoa Virgin Islands (U.S.)
    The Commonwealth of the Northern Mariana Islands Guam
    Puerto Rico Palau
    Federated States of Micronesia Marshall Islands
  3. Apply the Form 941 line processing procedures contained in IRM 3.12.13 when processing Form(s) 941-PR and 941-SS.

  4. For Forms 941-PR or 941-SS, money amounts are not allowable in Fields 0202 (Total Compensation), 0203 (Amount of Income Tax Withheld), 02QW (Adjustment to Withholding on Revisions prior to 2010), and 02EC (Earned Income Credit) (revisions prior to 2011). If an amount is shown in one of these Fields, it must be deleted.

♦Processing Form 941 Returns Filed by Federal, State, or Municipal Governments♦

  1. Certain government agencies are empowered to collect from employers Compensation erroneously not paid to employees (or former employees). The agencies are authorized to disburse these Compensation to the employees concerned, and withhold the income taxes and the employee's share of the Social Security or Medicare taxes. The agencies allowed to take this action are:

    • Department of Labor

    • General Accounting Office

    • Housing and Urban Development

    • National Labor Relations Board

  2. The agencies prepare a Form 941 each quarter for the total Compensation collected from employers during that quarter. If no Compensation are collected, "No Liability" returns are to be filed. These returns may be processed as follows:

    1. The agency will show the full Compensation on Form 941, line 5a (Rev 2005 and subsequent) and compute the full amount of tax.

    2. For errors discovered on or after January 1, 2009, a Form 941-X should be prepared for any adjustment to the taxable Social Security and/or Medicare Compensation previously reported on Form 941. Repeat the same steps for the Federal Income Tax Withholding amount. The explanation on Form 941-X, should indicate the name of the agency and the Act which authorized them to collect and pay back Compensation. The Form 941-X will be stamped, "Do Not Transmit to SSA" .

    3. The agency also creates two copies of Form 941-X for each employer involved showing the employer's address and EIN. These Form 941-Xs are sent to the Accounts Management (AM) function servicing the area in which the employer is located. These forms are used to notify the employers of their liability for the employer share of social security Medicare to make necessary adjustments. If the employer copies of the Form 941-Xs are attached to Form 941, detach and send the Form 941-X to the AM for processing.

♦Section 01 (Forms 941, 941-PR, 941-SS)♦

  1. The following sections provide information concerning Form 941, 941-PR and 941-SS, Section 01.

    Note:

    All editing on Forms 941 (Rev 2005 and subsequent) will be shown in the same location on the return unless otherwise noted below:

    Field Designator Field Length Title of Field Location on Return
    01NC 4 Name Control Entity Portion

    Note:

    For procedures regarding a "Care of Name" , see Field 04CON.

    01EIN 9 Employment Identification Number Entity Portion
    01TXP 6 Tax Period Entity Portion

    Above the "Report for this Quarter" box, to the right of the entity in YYMM format.

    Note:

    The Field is "YYYYMM" , but the first two digits for the century appear/generate on ISRP or SCRIPS. Thus, only the last 4 characters, e.g. "YYMM" , are edited.

    01RCD 8 Received Date Face of the return
    01CCC 10 Computer Condition Codes Directly beneath the statement "You Must complete both pages of Form 941"
    01SIC 1 Schedule Indicator Code On the right margin opposite the end of line, Part I.
    0101 7 Number of Employees Line 1
    01SRI 1 Form 941, Schedule R Indicator An indicator "R" on the right margin opposite line 7, Forms 941-SS only.
    01CRD 8 Correspondence Received Date Code and Edit previously edited in the upper left corner of the return on the left margin. However, the Field is no longer edited by Code and Edit

    If CRD is needed by ERS, the examiner should enter the Field on the display screen, and edit it on the return margin in the upper left hand corner
    01ARN 1 Applied Refund Indicator Boxes to the right of the overpayment line.
    01CBI 1 Designee Checkbox Indicator Only when "Yes" box is checked
    01CBP 5 Designee Checkbox PIN Page 2, Part 4– Beneath the "Designee's name and phone number" near the right hand margin
    01PSN 9, (a "P" and 8 numerical characters) Paid Preparer's Tax Identification Number (PTIN) Page 2, Part 5, Alongside the "Preparer's name" near the right hand margin.
    01PEN 9 Paid Preparer's EIN Page 2, part 5– Alongside the "Firm's name" near the right hand margin
    01PTN 10 Paid Preparer's Telephone Number Page 2, Part 5 — Along- side the "Firm's name" near the right hand margin

♦Field 01NC – Name Control- 4 Positions♦

  1. Name Control This Field is located in the entity section of the return. Each of the four positions must have a letter of the alphabet, a numeric, a hyphen, an ampersand or a blank. The method for determining the name control is found in Document 7071A, Name Control Job Aid.

    Note:

    For procedures regarding a "Care of Name" , see Field 04CON.

  2. Invalid Conditions
    The name control Field is invalid if:

    1. The first position is not alpha or numeric.

    2. The 2nd, 3rd or 4th is not an alpha, numeric, hyphen, ampersand or blank.

    3. There are any intervening blanks between characters.

  3. Correction Procedures:
    Check the screen display against the return

    If Then
    Transcribed incorrectly, Enter the correct name control from the return.
    The name control is not available, 1– Initiate research to secure the name control.

    2– If data is not available, or you are unable to determine the name control, suspend with Action Code 351.

    3– A Rejects Unit examiner will initiate research to secure a name control.

♦Field 01EIN – Employer Identification Number (EIN) -9 Positions ♦

  1. The EIN is a number assigned by IRS for identification of a business tax account. This Field is located beneath the title of the return, or in the Entity Section of the return.

  2. Invalid Conditions:
    The EIN is invalid if:

    1. It is not numeric.

    2. It is less than nine characters.

    3. The first two digits are: 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, 80, or 89.

    4. It is all zeros or all nines.

  3. Correction Procedures:
    Check the Field with the return.

    If Then
    Transcribed incorrectly, Enter the correct EIN from the return.
    The EIN transcribed was incorrect, 1– Search the return or attachments for a valid EIN.

    2– If found, enter the correct number.

    3– Issue Letter 3875C as a non-suspense letter to the address on the return.

    Note:

    Do not send Letter 3875C if three or less digits of the EIN are transposed, different, or missing, or when CC INOLES indicates the account has been "merged to" or "merged from" or when the taxpayer uses an SSN number on a BMF return, and your research has determined there is no entity on Master File with that number sequentially entered in EIN format.

    A correct number cannot be determined from the return, 1– Research IDRS for the correct number.

    2– If found, enter the correct number.

    3– Issue Letter 3875C as a non-suspense letter to the address on the return.

    Note:

    Do not send Letter 3875C if three or less digits of the EIN are transposed, different, or missing, or when CC INOLES indicates the account has been "merged to" or "merged from" or when the taxpayer uses an SSN number on a BMF return, and your research has determined there is no entity on Master File with that number sequentially entered in EIN format.

    More than one number is found, or if unable to determine a valid EIN, 1- Suspend with Action Code 320 for referral to Entity Control.
    2- If an EIN is assigned by Entity Control, it should be notated in the left margin with an assignment date in MMDDYYYY format, and the employee’s number or IDRS number.
    The data is not available through research. Use CC SSPND with Action Code 351 to allow for additional research.

♦Field 01TXP - Tax Period- 6 Positions♦

  1. This Field is shown in the entity section or upper portion of the return. For example, on Form 941, Rev 2005 and subsequent, the tax period is edited above the "Report for this Quarter" box positioned to the right of the entity. It is always shown in "YYYYMM" order (i.e., September 2009= 200909).

  2. Invalid Conditions:
    This Field is invalid if:

    1. It is not all numeric,

    2. It is less than the Automated Data Processing (ADP) date of 196203 or greater than the process date,

    3. It is all blank.

  3. Correction Procedures:
    Check the return and/or attachments for the correct tax period.

    If Then
    Transcribed incorrectly, Enter the correct tax period from the return.
    The return is for a Non-ADP tax period, Reject (RJECT) or suspend (SSPND) the record with Action Code 620. Refer to IRM 3.12.13.79, Non-ADP Returns.
    The return is for a tax period greater than the process date, (e.g. early filed return) Suspend (SSPND) the record with Action Code 480. Note: Form 941 returns may be processed during any month in a quarter for which the return is intended.
    There are multiple tax periods, 1– Treat as unprocessable and initiate correspondence for clarification of the tax period (or tax periods). Suspend with the appropriate Action Code (21X).
    2– If you receive a reply, process to the applicable tax period (or tax periods).

    Note:

    If the return or the taxpayer's reply indicates it should be treated as a final return, delete the received date and enter CCC "F" in Field 01CCC and in the center of the bottom margin of the return.


    3– If you do not receive a reply and:
    • the multiple tax periods are future tax periods, process the return to the earliest tax period.

    • the multiple tax periods are prior tax periods, process the return to the latest tax period.

    The tax period cannot be determined, or is not shown on the return, Enter the current quarter being processed as the tax period.

♦ Field 01RCD–Received Date- 8 Positions♦

  1. This Field is date stamped or edited on the face of the return. It is required if the return is delinquent, amended, or has a CCC "D" , "G" , "R" or "7" . If all the positions in the Field are blank, it would not cause an invalid condition.

  2. Form 941 (Rev 2005 and subsequent) returns processed through SCRIPS will be assigned a received date consisting of one zero and 7 twos (02222222), if the entry is missing, or illegible.

  3. Invalid Conditions:
    This Field is invalid if:

    1. Not in "YYYYMMDD" format.

    2. Prior to 19620101.

    3. Later than the current processing date, or

    4. Not within the valid month, day range of the table below.

    5. If processed prior to the ending date of the current quarter.

      Example:

      Form 941 is received on March 4, 2016 for the first quarter 2016.

    Month Day
    01 01–31
    02 01–28 (29 in leap year)
    03 01–31
    04 01–30
    05 01–31
    06 01–30
    07 01–31
    08 01–31
    09 01–30
    10 01–31
    11 01–30
    12 01–31
  4. Correction Procedures:
    Compare the screen display with the return.

    If Then
    Transcribed incorrectly, Enter the correct received date from the return to Field 01RCD.
    The received date is not needed because the return due date is later than current processing date. Delete the entry from Field 01RCD.
    The received date is required, but not present, or not stamped on the return, or a valid handwritten received date is not present. 1- Determine the received date using the following priority when one is needed but is not stamped on the return or a valid handwritten received date is not present.
    1. Earliest legible U.S. Post Office, Private Delivery Service, or foreign postmark

      Note:

      If an envelope is not attached, use the postmark date stamped on the face of the return.

      Note:

      A private metered postmark is to be considered timely if received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. Service Center Automated Processing System (SCAMPS) digital dates

    3. Revenue Officer's or other IRS official's signature date.

    4. Signature date, if within the current year (unless other information indicates signature date is invalid).

    5. DLN Julian Date less 10 days


    2– Enter the correct received date in 01RCD.
    The received date is invalid and it appears that the incorrect year was used (i.e., 20090116 instead of 20100116), and other information (Julian date, postmark date, and/or signature date) indicates the received date should be a current year, Change the received date year to the current year.
    Multiple dates are on the return, Use the earliest date. Circle out all other received dates.

♦Field 01CCC - Computer Condition Codes (CCC)— 10 Positions♦

  1. This Field is located on Forms 941, 941-PR, or 941-SS below last line of page 1 in the center of the bottom margin of the return. Computer Condition Codes (CCC) are used to identify a special condition or computation for the computer. See IRM 3.12.13.9 for a description of each of the codes and their use.

  2. Invalid Conditions—This Field is invalid if:

    1. The entry is other than CCC "B" , "C" , "D" , "E" , "F" , "G" , "J" , "M" , "O" , Q, "R" , "S" , "T" , "W" , "X" , "3" , "4" or "7" .

    2. CCC "G" is present and any other CCC except "W" or "3" is present.

    3. CCC "E" and "F" are used together.

    4. CCC "E" and "S" are used together.

    5. CCC "7" is present and CCC "D" and "R" are present.

    6. CCC "4" is present and CCC "R" is present.

  3. Correction Procedures:
    Check the screen display with the return.

    If Then
    Other CCCs are present with the "W" , "3" , and "G" Code, 1– Delete the other codes, if the CCC "G" is needed.

    2– If the CCC "G" is not needed, delete it and leave the other codes. Review all sections and input data where necessary.
    CCC "E" is present with CCC "F" , 1– Review the return for an indication by the taxpayer that the return was final.
    2– Determine which is correct and delete the incorrect CCC.
    CCC "D" and "R" are present with CCC "7" , Determine which is correct and delete the incorrect CCC.
    Both CCC "4" and "R" are present, Determine which is correct and delete the other.
    The F8974 is attached to the F941, 941-PR or 941-SS, Form 943, 943-PR, Form 944 and 944 (SP). Edit the CCC Q
    The taxpayer did not respond to the request to send the F8974 Delete the CCC Q
    The taxpayer has checked the "Seasonal Filer" box in Part 3, Form 941 Enter the CCC "T" .
    The taxpayer has checked the "Final Return" box and the "Seasonal Filer" box in Part 3, Form 941. Enter CCC "T" only.
    None of the conditions above apply, Delete the code(s).

♦01SIC–Schedule Indicator Code (SIC)- 1 Position♦

  1. This Field is located on Forms 941, 941-PR, or 941–SS (Rev 2005 and subsequent) in the right margin opposite the end of the line for Part 1.

  2. The Schedule Indicator Code (SIC) is used to notify the computer that the Record of Federal Tax Liability (ROFTL) is blank, incomplete, outside the tolerance and the total tax is ≡ ≡ ≡ ≡ ≡ ≡ or greater that a penalty should not be assessed.

  3. Invalid Conditions
    This Field will be invalid if it is other than blank, 1, 2, or 3.

  4. Correction Procedures:
    Compare the screen display with the return.

    If Then
    Transcribed incorrectly, Enter the correct SIC from the return.
    The code should not be present on the return, Delete the entry.

♦Field 0101– Number of Employees- 7 Positions♦

  1. This Field is entered on line 1, Form 941, 941-PR or 941-SS (Rev 2005 and subsequent) returns. This Field is now required for each quarter a return is filed.

  2. Invalid Condition:
    The Field is invalid if it is not all numeric.

  3. Correction Procedures:
    Compare the screen display with the return.

    If Then
    Transcribed incorrectly, Enter the correct entry from the return.
    Blank and nothing indicated on an attachment, Enter a "1" in Field 0101 if any tax is reported on the form.

♦Field 01SRI- Form 941, Schedule R Indicator- 1 Position♦

  1. This Field is used to indicate that a Form 941, Schedule R, "Allocation Schedule for Aggregate Form 941 Filers" was attached to the Form 941 when filed.

  2. The Schedule R is filed by an individual or entity who has previously filed Form 2678, and is filing one Form 941 return under his own EIN for two or more unrelated parties under IRC 3504.

  3. Valid entries are "R" (active) or blank (inactive).

  4. When the Form 941-SS is filed with a Schedule R attached, Code and Edit will edit an "R" opposite line 7 on the right hand margin.

  5. Invalid Conditions:
    This Field is invalid if any character other than "R" is present.

  6. Correction Procedures:
    Compare the screen display with the return.

    If Then
    A character other than "R" is present, Delete the entry.

♦Field 01CRD- Correspondence Received Date— 8 Positions♦

  1. The Correspondence Received Date (CRD) should be present when returns have been held in Suspense and the reply is received after the Return Due Date.

  2. If a Field error generates due to a previously edited CRD, follow the correction procedures below.

  3. Invalid Conditions:

    • Not numeric.

    • Less than 8 numerics.

    • Not in "YYYYMMDD" format.

    • Not in the valid month or day range.

    • The same as, or prior to, the return due date.

    • Greater than the current date.

  4. Correction Procedures:
    Compare the screen display with the return.

    If Then
    Transcribed incorrectly, Enter the correct CRD from the correspondence.
    The taxpayer reply is by Fax, Use the following priority to determine the CRD:
    • Correspondence Received Date

    • Date the reply was faxed,

    • Date entered on the fax cover sheet by taxpayer

    • Current date

    The taxpayer replies, (i.e., other than fax) Use the following priority order to determine the CRD:
    • Correspondence Received Date

    • Postmark date on the reply envelope

    • Current date.

    The date is illegible, Check the attached correspondence which bears a received date stamp
    More than one CRD is stamped or written. Use the CRD that made the return processable. Line out all other CRDs.
    A date cannot be determined, Use current date minus 10 days.
    There was no reply from the taxpayer. Enter a "3" in the CCC Field.
    Error Code 034 generates after input of 01CRD, Then see instructions below for correcting or IRM 3.12.38.5.1.7, Correspondence Received Date (CRD), for instructions.

♦Field 01ARN–Applied Refund Indicator- 1 Position♦

  1. This Field is located on Forms 941, 941-PR, and 941-SS, under the overpayment line.

  2. This Field is used to indicate whether the taxpayer has elected to treat an overpayment as a credit elect to the next tax period or as a refund. ISRP enters a "2" if the "Refund" box contains an entry on a Form 941, 941-PR, or 941-SS.

  3. Invalid Condition:
    This Field is invalid if it is:

    1. Not blank, or

    2. An entry other than "2" .

  4. Correction Procedures:
    Compare the screen display and the return.

    If Then
    Transcribed incorrectly, or an invalid code is present, Correct the entry from the return. The appropriate codes are:
    •"2" –"Refund" box is checked.

    •"blank" –Neither box is checked, or both the "Applied to next return" and "Refund" boxes are checked, or the "Applied to next return" box is checked.

♦Field 01CBI - Designee Checkbox Indicator- 1 Position♦

  1. The Designee check box Field on Forms 941, 941-PR, and 941–SS is on page 2, Part 4 along the left hand margin. The Field consists of 2 boxes, "YES" and "NO" .

  2. If the taxpayer checks the "Yes" box, ISRP or SCRIPS will enter a "1" . An entry to both boxes or only the "NO" box is not transcribed.

  3. There are validity checks on the Field, but the Field is not correctable.

  4. Invalid Conditions:
    If the value is other than "1" or blank.

  5. Correction Procedures:
    Compare the screen display and the return.

    If Then
    The value is other than "1" or blank, Delete the Field 01CBI and continue processing.

♦Field 01CBP - Designee Checkbox PIN (Personal Identification Number) - 5 Positions♦

  1. The Field is located on Form 941, 941-PR, or 941-SS on page 2 in Part 4 on the right side below the Designee name and phone number (Rev 2008 and subsequent).

  2. The Third Party Designee Identifying Number is comprised of any 5 alpha (i.e., "A" to "Z" ), numeric (e.g. "0" to "9" ), or any combination of, characters chosen at random by the taxpayer or the taxpayer's representative.

  3. The Third Party Designee Identifying Number is only for the tax period of the return on which it appears. On all future filings, the taxpayer can keep the same PIN number or change the PIN number.

♦Field 01PSN — Paid Preparer's Tax Identification Number (PTIN) – 9 Positions♦

  1. The Paid Preparer's Tax Identification Number (PTIN) is located at the bottom of page 2 of Form 941 along the right hand margin.

  2. Data may or may not be present in Field 01PSN.

  3. Valid characters are all blank, all numeric or with the alpha "P" in the first character position followed by eight numerics.

    Note:

    The first character in a PTIN as a Tax Identification Number (TIN) must be with the alpha "P" . The range for a valid PTIN (as a TIN) is P00000001 through P99999998. A "P" followed by all zeroes or all nines is not valid.

    Note:

    If the Paid Preparer information is present, either Field 01PSN or 01PEN should have an entry. Only one of these Fields is required.

  4. Invalid Conditions:
    The Field is invalid if:

    1. The nine characters are all zeroes or nines.

    2. The nine characters are not a "P" followed by 8 numerics.

  5. Correction Procedures:
    If the PTIN on the return is invalid, do not attempt to correct the return information. Blank Field 01PSN.

♦Field 01PEN - Paid Preparer's EIN– 9 Positions♦

  1. The Preparer's EIN is located at the bottom of Page 2, lower right hand side, above the Preparer's phone number on Forms 941, 941-PR or 941-SS (all Rev 2008 and subsequent).

  2. Invalid Conditions:
    The Preparer's EIN must be a nine-digit number. This Field is invalid if:

    1. The EIN is all zeroes or all nines.

    2. The first two digits are invalid for Field 01EIN, See IRM 3.12.13.24.2.

  3. Correction Procedures:
    If the Preparer EIN on the return is invalid, do not attempt to correct the information. Delete Field 01PEN.

♦Field 01PTN — Paid Preparer's Telephone Number – 10 Positions♦

  1. The Preparer's Telephone Number is located on page 2, below Part 5 of Forms 941, 941-PR, or 941-SS, (Rev 2008 and subsequent).

  2. The Paid Preparer's Telephone Number should be shown as 10 characters. Only numerical characters (e.g. 0 through 9) are valid for this Field.

    1. If the Paid Preparer's Telephone Number is incomplete, illegible, or less than 10 digits review the return and attachments. If unable to determine a complete or legible Paid Preparer's Telephone Number, blank the Field from the display screen.

    2. If the Paid Preparer's Telephone Number has more than 10 digits, only the first 10 digits will be captured.

  3. Correction Procedures:
    Compare the screen display with the return.

    If Then
    The Paid Preparer's Telephone Number is incomplete, illegible, or less than 10 digits, 1- Review the return and attachments for a complete telephone number.

    2- If a number cannot be located, delete the Field on the screen display.
    —If a number is located, enter the complete telephone number on the screen display.
    The return is for a tax period prior to 200512, Blank the Field. The tax period precedes the addition of the preparer telephone number to the Forms 941, 941-PR, or 941-SS.

♦Section 02 (Form 941, 941-PR, 941-SS) Taxable Compensation & Tips Subject to Additional Medicare Tax Withholding♦

  1. The following sections provide information on Form(s) 941, 941-PR or 941-SS, Section 02. If a Field is not applicable to the form, it is indicated in the "Comments" column.

  2. Any money amount will be entered in dollars and cents.

    Section 02- Forms 941, 941-PR, and 941-SS

    Field Designator Field Length Title of Field Dollars and cents ($) or Numeric Location on Return Positive (+) or negative (-) Comments
    0202 15 Compensation, Tips, and Other Compensation ($) Line 2 (+)  
    02ITW

    Note:

    Field applicable only to Form 941

    14 Total Federal Income Tax Withheld ($) Line 3 (+)  
    0204 1 Exempt From Social Security and Medicare Taxes Indicator   Line 4   If the box contains an entry, Code and Edit was instructed to edit a CCC B on the return. ERS examiners should review Field 01CCC for a B if line 4 contains an entry when Field 01CCC displays.
    02SSW 14 Taxable Social Security Compensation ($) Line 5a, column 1 (+)  
    02SST 14 Taxable Social Security Tips ($) Line 5b, column 1 (+)  
    02MED 15 Taxable Medicare Compensation and Tips ($) Line 5c, column 1 (+)  
    02XMT 15 Additional Medicare Compensation and Tips Tax ($) Line 5d (+) 2013 and subsequent
    02TSM 15 Total Social Security and Medicare Tax -Taxpayer ($) Line 5e, line 5d returns filed prior to 2013 (+)  
    02QTX 15 Section 3121 (q) Notice and Demand ($) Line 5f line 5d tax periods 2011    
    02FP (Applicable to Form 941, tax periods 201006-201012 7 Number of qualified employees paid exempt Compensation/Tips beginning this quarter Numeric Line 6a (Applicable to Form 941, tax periods 201006-201012    
    02NP (Applicable to Form 941 tax periods 201006-201012 7 Number of qualified employees paid exempt Compensation/Tips during this quarter Numeric Line 6b (Applicable to Form 941 tax periods 201006-201012    
    02EW (Applicable to Form 941 tax periods 201006-201012 14 Exempt Compensation/Tips paid qualified employees during quarter ($) Line 6c (Applicable to Form 941 tax period 201006-201012 (+)  
    02TW (Applicable to Form 941 tax periods 201006-201012 15 Tax on exempt Compensation/Tips paid qualified employees during quarter-Taxpayer ($) Line 6d (Applicable to Form 941 tax periods 201006-201012 (+)  
    02BA 15 Total taxes before adjustments-Taxpayer ($) Line 6, 2012 and subsequent, Line 6e (Applicable to Form 941 tax periods 201006-201012 (+)  
    02FC 14 Current quarter’s fraction of cents ($) Line 7 2011 and subsequent, line 7a 2010 and prior (+)/(-)  
    02SP 14 Current quarter’s sick pay ($) Line 8 2011 and subsequent, line 7b 2010 and prior (+)/(-)  
    02TG 14 Current quarter’s adjustment for tips and group life insurance ($) Line 9 2011 and subsequent, line 7c 2010 and prior (+)/(-)  
    02TA (Applicable to Forms 941, 941-PR, 941-SS, Rev 2005 through 201003) 15 Total adjustments amount- Taxpayer ($)
    • Line 7h (Forms 941, 941-PR, and 941–SS, Rev 2005 through 2008)

    • line 7d (Forms 941, 941-PR and 941-SS, Rev 2009 and Feb 2010)

    (+)/(-)  
    02EC 10 Advance earned income credit ($) Line 9 (+) Not valid for 201103 and subsequent.
    02PTC 15 Payroll Tax Credit for increasing research ($) Line 11 (Revision 2017 and subsequent) (+)  
    02TT 15 Total tax-Taxpayer ($) Line 10 (2011 through 2016 or Line 12 (Revision 2017 and subsequent)) or line 8 (2010 and prior) (+)/(-)  
    02DEP 15 Total deposits for quarter ($) Line 11(Revision 2016 and prior) or Line 13 (Revision 2017 and subsequent) (+)  
    02CPM 15 COBRA Premium Assistance Payments ($) Line 12a (+) Valid 200903 through 201312
    02CEM 7 Number of Recipients Receiving COBRA Numeric Line 12b (+) Valid 200903 through 201312
    02MRN 7 March Number of qualified employees paid exempt Compensation/tips Numeric Line 12c (+) Applicable to Form 941, 941-PR, and 941-SS for 2nd quarter (for April May June) 2010 only.
    02MRW 14 March amount of exempt Compensation/Tips paid qualified employees ($) Line 12d (+) Applicable to Form 941, 941-PR, and 941-SS for 2nd quarter (for April May June) 2010 only.
    02MRT 15 Tax credit on March exempt Compensation/Tips paid qualified employees- Taxpayer ($) Line 12e (+) Applicable to Form 941, 941-PR, and 941-SS for 2nd quarter (for April May June) 2010 only.
    02STL 15 Subtotal Tax ($) Line 13 2009 through 201312. (+) Valid for 200903 through 201312. Field is computed by adding Fields 02DEP and 02CPM.

    For Rev April 2010: Field is computed by adding Fields 02DEP, 02CPM, and 02MRT
    02B/R 15 Balance Due/Overpayment ($) Line 12 or 13 (Revision 2014-2016), or line 14 or 15 (For Rev 2017 and subsequent, 2009-2013) (+)/(-)  

     

♦Field 0202– Compensation, Tips and Other Compensation- 15 Positions♦

  1. This Field is located on Form 941, line 2 and shows the total taxable Compensation, tips or other compensation before any payroll deductions. The entry must be entered in dollars and cents. This Field does not apply to Forms 941-PR and 941-SS.

  2. Invalid Condition:
    This Field is invalid if it is not all numeric.

  3. Correction Procedures:
    If transcribed incorrectly, enter the correct amount from the return.

♦Field 02ITW– Total Federal Income Tax Withheld - 14 Positions♦

  1. This Field is transcribed from Form 941, line 3. This entry on Form 941 is the Total Federal Income Tax Withheld (FIT) from all employees' Compensation, tips, or other taxable compensation. This Field does not apply to Forms 941-PR and 941-SS.

    Note:

    Some Compensation, tips, or other compensation reported on line 2 may be exempt from federal income tax. Refer to Pub 15 Circular E, Pub 15-A, Employers' Supplemental Tax Guide, or Pub 15-B, Employers' Tax Guide to Fringe Benefits, for determining whether FIT is applicable.

  2. The entry must be entered in dollars and cents.

  3. The return line must be positive. Change any negative amount reported on line 3 to a positive figure.

  4. Correction Procedures:
    Compare the screen and the return. Correct any transcription errors.

♦Field 0204— Exempt From Social Security and Medicare Tax Indicator -1 Position♦

  1. This Field is transcribed from Forms 941, 941-PR or 941-SS, line 4.

  2. The taxpayer checks the box to indicate that the Compensation are not subject to Social Security and/or Medicare taxes.

  3. Valid entries are "1" , e.g. check mark in the box on line 4, or blank.

  4. If the box is checked, a "1" should appear in Field 0204 and Field 01CCC should indicate a "B" .

    Note:

    Always enter a Computer Condition Code B when the box on Forms 941, 941-PR or 941-SS, line 4 contains an entry and Field(s) 025A, 02SST, and/or 02MED are blank.

  5. Invalid Condition–
    This Field is in error if the box is not checked on line 4, or blank.

  6. Correction Procedures:
    Compare the screen display with the return.

    If Then
    Transcribed incorrectly, Enter the correct value from the return.
    A check mark is not present in the box on line 4, Forms 941, 941-PR or 941-SS, 1- Blank any entry in Field 0204.

    2- Enter GTSEC 01 to check Field 01CCC for CCC B. If present, delete the "B" from the Field.

    Caution:

    When deleting the "B" from Field 01CCC, be careful you do not blank any other CCC from that Field.

    A check mark is present in the box on line 4, Forms 941, 941-PR or 941-SS, but there is no "B" present on the return, 1- GTSEC 01 to check for a "B" in 01CCC.

    2- If not present in 01CCC, enter the "B" .

♦Field 02SSW– Taxable Social Security Compensation- 14 Positions♦

  1. This field shows the reported amount of taxable Social Security Compensation transcribed from the return.

  2. This field is located on Forms 941, 941-PR, or 941-SS, line 5a, Column 1.

  3. The field shows the amount of Compensation paid by the employer to the employee(s) who are subject to Social Security tax. The tax amount includes contributions paid by both the employer and employee.

  4. This entry is always a positive amount.

  5. The entry is always entered in dollars and cents.

  6. Invalid Condition
    This field is in error if it is not all numeric.

  7. Correction Procedures:
    Compare the screen display with the entry on the return. If transcribed incorrectly then enter the correct amount on the screen.

♦Field 02SST– Taxable Social Security Tips- 14 Positions♦

  1. This field shows the reported amount of taxable Social Security Tips transcribed from the return.

  2. This field is located on Forms 941, 941-PR, and 941-SS, line 5b, Column 1.

    1. Taxable Tips are reported, if applicable, on the Form 941 for each quarter.

    2. This field is shown as dollars and cents and is always a positive amount.

  3. Invalid Condition:
    This field is in error if it is not all numeric.

  4. Correction Procedures:
    Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

♦Field 02MED– Taxable Medicare Compensation and Tips- 15 Positions♦

  1. This field shows the reported amount of taxable Medicare Compensation and Tips transcribed from the return.

  2. This field is located on Form 941, Form 941-PR or Form 941-SS, line 5c, Column 1. This is the amount of Compensation paid by the employer to the employee(s) who are subject to Medicare tax. The tax includes contributions paid by both the employer and employee.

  3. This entry is entered as dollars and cents.

  4. The entry is always a positive amount.

  5. Invalid Condition:
    This field is in error if it is not all numeric.

  6. Correction Procedures:
    Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

♦Field 02XMT Additional Taxable Medicare Compensation and Tips♦

  1. Field 02XMT is transcribed from line 5d, Form 941, Form 941-PR or Form 941-SS for tax periods 201303 and subsequent.

  2. This field must be positive.

  3. The field must be in dollar and cents.

  4. Invalid Condition:
    This field is in error if it is not all numeric.

  5. Correction Procedures:
    Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

♦Field 02TSM- Total Social Security and Medicare Taxes–Taxpayer– 15 Positions♦

  1. This field is transcribed from Form 941, Form 941-PR or Form 941-SS, line 5e (Revision 2013 and subsequent), line 5d (2012 and prior). This is the total amount of the Social Security and Medicare taxes for the taxable Compensation and tips paid by the employer to the employee(s).

  2. The field must be positive.

  3. The field must be in dollars and cents.

  4. Invalid Condition:
    This field is invalid if the figure is not numeric.

  5. Correction Procedures:
    Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

♦Field 02QTX- Section 3121 (q) Notice and Demand♦

  1. This field is located on Form 941, line 5f (2013 and subsequent), line 5e (2012 only).

  2. When an employee fails to report tips to the employee’s employer, the employer is not liable for its portion of the social security and Medicare taxes on the unreported tips until the IRS makes notice and demand to the employer. The employer, upon receipt of the IRS notice of demand, includes the amount on their next quarterly Form 941.

  3. The field must be positive and valid for periods 201304 and subsequent.

  4. The field must be in dollars and cents.

  5. Invalid Condition:
    This field is invalid if the figure is not numeric.

  6. Correction Procedures:
    Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

♦Field 02FP - Number of Qualified Employees First Paid Exempt Compensation/Tips Beginning This Qtr.- 7 Positions♦

  1. This field is located on Form 941, (Rev. April 2010), line 6a. On line 6a, the employer indicates the number of qualified employees hired during the quarter indicated on the Form 941, who received their first payroll check from this employer during that quarter.

  2. The field is only applicable to 201006 through 201012 returns.

  3. The entry cannot exceed 7 numeric characters.

  4. The entry must be a positive number.

  5. Invalid Condition:
    This field is invalid when it is negative or other than numeric.

  6. Correction Procedures:
    Compare the screen display to the return.

    If Then
    Transcribed incorrectly, Enter the correct amount from the return.
    The tax period of the return is earlier than 201006 or after 201012, Blank the field as a misplaced entry.
    The entry on line 02FP is a negative amount, Treat the entry as a positive amount.

♦Field 02NP - Number of Qualified Employees Paid Exempt Compensation/Tips During This Qtr- 7 Positions♦

  1. This field is located on Form 941, (Rev. April 2010) line 6b. On line 6b, the employer indicates the number of qualified employees (i.e., those hired after March 18th, 2010), who were paid Compensation during the quarter shown on the return. which qualify to be exempt from the employer’s share of Social Security taxes.

  2. The field is only applicable to 201006 thru 201012.

  3. The entry cannot exceed 7 numeric characters.

  4. The entry must be a positive entry.

  5. Invalid Condition:
    This field is invalid when it is negative or other than numeric.

  6. Correction Procedures:
    Compare the screen with the return.

    If Then
    Transcribed incorrectly, Enter the correct amount from the return.
    The tax period of the return is earlier than 201006 or after 201012, Blank the field as a misplaced entry.
    The entry in Field 02NP is a negative amount, Treat the entry as a positive amount.

♦ Field 02EW - Exempt Compensation/Tips Paid Qualified Employees During Qtr.- 15 Positions♦

  1. This field is located on Form 941, (Rev. April 2010) line 6c. On line 6c, the employer enters the total Compensation earned by the qualified employees for the quarter indicated in the “Report for this quarter of 20xx” box in the upper right hand corner to compute the 6.2 percent Social Security tax credit amount.

  2. The field is only applicable to 201006 through 201012 returns.

  3. The entry must be in dollars and cents.

  4. The entry cannot exceed 15 numeric characters.

  5. The entry must be a positive amount.

  6. Invalid Condition:
    This field is invalid when it is negative or other than numeric.

  7. Correction Procedures:
    Compare the screen display with the return.

    If Then
    Transcribed incorrectly, Enter the correct amount from the return.
    The tax period of the return is earlier than 201006 or after 201012, Blank the field as a misplaced entry.
    The entry on line 02EW is a negative amount, Treat the entry as a positive amount.

♦Field 02TW- Tax on Exempt Compensation/Tips Paid Qualified Employees During Quarter-Taxpayer-15 Positions♦

  1. This field is located on Form 941, (Rev April 2010), line 6d. Line 6d represents the employer's portion of the Social Security tax e.g. 6.2 percent, on the exempt Compensation paid to qualified employees reported on line 6c. The computed amount is treated as a credit on the return and subtracted from the computed quarterly Federal Withholding, Social Security and Medicare wage and tips taxes due.

  2. The field is only applicable to 201006 through 201012 returns.

  3. The entry must be in dollars and cents.

  4. The entry cannot exceed 15 numeric characters.

  5. The entry must be a positive amount.

  6. Invalid Condition:
    This field is invalid when it is negative or other than numeric.

  7. Correction Procedures:
    Compare the screen display against the Form 941, line 6d.

    If Then
    Transcribed incorrectly, Enter the correct amount from the return.
    The tax period of the return is earlier than 201006 or later than 201012, Blank the field as a misplaced entry.
    The entry on line 6d is a negative amount, Treat the entry as a positive amount.

♦Field 02BA - Total Tax Before Adjustments- Taxpayer– 15 Positions♦

  1. This field is located on Form 941, Line 6, 2012 and subsequent (2011 and prior Line 6e). The entry represents the total of the Federal Income Tax Withheld, Social Security and Medicare, and Additional Medicare taxes less the employer's portion of Social Security taxes on the exempt Compensation paid to qualified employees.

  2. The entry must be in dollars and cents.

  3. The entry cannot exceed 15 numeric characters.

  4. The entry must be a positive amount.

  5. Invalid Condition:
    This field is invalid when it is other than numeric or negative.

  6. Correction Procedures:
    Compare the screen display against the Form 941, line 6e.

    If Then
    Transcribed incorrectly, Enter the correct amount from the return.
    The tax period of the return is earlier than 201006 or after 201012, Blank the field as a misplaced entry.
    The entry on line 02BA is a negative amount, Treat the entry as a positive amount.

♦Field 02FC— Current Quarter's Adjustments for Fraction of Cents – 14 Positions♦

  1. The field shows the total of the fractions of cents in the tax computation of the Social Security Compensation and/or tips, and Medicare Compensation reported on line 5a, 5b, and 5c of the return.

  2. This fields entry is located on Forms 941, 941-PR, and 941-SS, line 7, 2011 and subsequent, Line 7a 2010 and prior.

  3. The amount may be a positive or negative figure.

  4. The field must be in dollars and cents.

  5. Invalid Condition:
    This field is invalid if it is other than numeric.

  6. Correction Procedures:
    Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

♦Field 02SP— Current Quarter's Adjustments for Sick Pay- 14 Positions♦

  1. This field represents the adjustment amount of Social Security and/or Medicare tax on Sick Pay, e.g. paid by a third party for an employee.

    Note:

    Beginning with Form 941, Rev. April 2010 and subsequent, several sub-total lines on earlier revisions of Form 941 were eliminated to provide space for new lines. The Subtotal line which showed the combined total of the Income Tax Withholding (line 3), total Social Security taxes on Compensation and tips (line 5d), and Total Adjustment (line 7d, Rev Jan 2010) lines was eliminated. Thus, some Form 941 returns have been received showing that total erroneously entered to line 7b (Rev April 2010, or Field 02SP). If after reviewing the return you can determine the entry is a misplaced entry, blank the entry on the display screen. If Error Code 100 generates, enter the Field 02TT> underprint amount.

  2. This fields entry is located on Forms 941, 941-PR, and 941-SS, line 8 2011 and subsequent line 7b, 2010 and prior.

  3. The amount may be a positive or negative figure.

  4. The field must be in dollars and cents.

  5. Invalid Condition:
    This field is invalid if it is other than numeric.

  6. Correction Procedures:
    Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

♦Field 02TG— Current Quarter's Adjustments for Tips and Group Term Life Insurance- 14 positions♦

  1. The entry represents the adjustment amount of Social Security and/or Medicare tax on Tips or Group Term Life Insurance.

  2. This field is located on Forms 941, 941-PR and 941-SS, line 9 2011 and subsequent, Line 7c 2010 and prior.

  3. The amount may be a positive or negative figure.

  4. The field must be in dollars and cents.

  5. Invalid Condition:
    This field is invalid if it is other than numeric.

  6. Correction Procedures:
    Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

♦Field 02TA - Total Adjustments- 15 Positions♦

  1. This field represents the net total of all adjustment amounts shown on a Form 941, 941-PR or 941-SS for periods prior to 201006.

    1. For tax period 200812 and prior the field is located on line 7h of Forms 941, 941-PR and 941-SS, (Rev 2005 through 2008). The entry represents the total of lines 7a through 7g.

    2. For tax year 2009 the field is located on line 7d of Forms 941, 941-PR and 941–SS. The entry represents the total of lines 7a through 7c.

  2. The field may be a positive or negative figure.

  3. The field should be in dollars and cents.

  4. Invalid Conditions
    This field is invalid if it is not all numeric.

  5. Correction Procedures:
    Compare the screen display and the return. If transcribed incorrectly, enter the correct amount from the return.

♦Field 02TT– Total Tax After Adjustments- Taxpayer- 15 Positions♦

  1. This field is located on Forms 941, 941-PR, and 941-SS, Line 8 2010 and prior, line 10 2011 through 2016 and on Line 12 (Revision 2017 and subsequent).

  2. This field is always in dollars and cents.

  3. The entry can be a positive or negative figure.

  4. Invalid Conditions:
    This field is invalid if it is not all numeric.

  5. Correction Procedures:
    Compare the screen display and the return. If transcribed incorrectly, enter the corrected amount from the return.

♦Field 02EC– Advance Earned Income Credit (AEIC)- 15 Positions ♦

  1. This field is line 9 on Form 941 (Rev 2005 through 10/2010). This field is not applicable to Forms 941-PR and 941-SS.

  2. The entry in the field is the total of the Advance Earned Income Credit shown on the W-2s for all employees.

  3. The field is entered in dollars and cents and will always be a positive amount.

  4. Invalid Condition:
    This field is invalid if it is not all numeric.

  5. Correction Procedures:
    Compare the screen display and the return.

    If Then
    The Advance Earned Income Credit entry is not all numeric, Delete the amount in Field 02EC on the ERS screen.
    Transcribed incorrectly, Enter the correct amount from the return.
    Tax period began after 12/31/2010 Blank any entry in Field 02EC.

♦Field 02PTC – Payroll tax credit for increasing research –15 Positions♦

  1. This field is located on Forms 941, 941-PR, and 941-SS, line 11 Revision 2017 and subsequent.

  2. The entry in the field equals the amount on F8974 line 12.

  3. The field is entered in dollars and cents and will always be a positive amount.

  4. Invalid Condition:
    This field is invalid if it is not all numeric.

  5. Correction Procedures:
    Compare the screen display and the return.

    If Then
    The payroll tax credit is not all numeric, Delete the amount in Field 02PTC.
    Transcribed incorrectly, Enter the correct amount from the F8974.
    F8974 is not attached and there is no indication that Code and Edit initiated correspondence Correspond to request the Form 8974 using Letter 21C and enter Action Code 211.

♦Field 02DEP – Total Deposits for Quarter –15 Positions♦

  1. This field is located on Forms 941, 941-PR, and 941-SS, line 11 (Revision 2016 and prior or line 13 (Revision 2017 and subsequent)).

  2. The entry is the total of the Federal Tax Deposits paid, based upon the quarterly tax liability. The entry may include an overpayment from a prior quarter which is being applied to this return.

  3. The entry is in dollars and cents and is always a positive amount.

  4. Correction Procedures:
    Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

♦Field 02CPM - COBRA Premium Assistance Payments- 15 Positions♦

  1. The field is line 12a on Forms 941, 941-PR, and 941-SS, (Rev. 200903 through 201312).

  2. The field displays the amount of COBRA (Consolidated Omnibus Budget Reconciliation Act) premium assistance payments made by the employer for current or unemployed former individuals who are eligible for COBRA health insurance. This assistance applies to premiums paid for employees involuntarily terminated between September 1, 2008 and May 31, 2010 and to premiums paid for up to 15 months.

  3. The field entry is in dollars and cents and is a positive amount.

  4. Invalid Condition:
    This field is invalid if it is not blank or all numerical.

  5. Correction Procedures:
    Compare the screen display and the return.

    If Then
    The field was transcribed incorrectly Enter the correct amount from the return.
    The taxpayer enters the alpha characters rather than its numeric character, i.e., writes "TWO" instead of "2" Change the alpha entry to the applicable numerical character.
    The tax period of the return began prior to 01/01/2009 or after 01/01/2014 Blank the entry in Field 02CPM. Employers were allowed to claim COBRA premium assistance payments only for tax periods which began after 12/31/2008 and ended prior to 01/01/2014.
    The TP has reported a negative amount on line 12a and has subtracted this amount from line 11, Delete the amount reported as a negative and send TPNC 90 stating "We have disallowed your negative entry reported on line 12a. If you need to adjust your COBRA credits claimed from a previous period you must file Form 941-X."

♦Field 02CEM - Number of Recipients Receiving COBRA- 7 Positions♦

  1. The field is located on Forms 941, 941-PR, and 941-SS, line 12b (Rev 200903 through 201312). The field displays the number of individuals who qualify for the COBRA premium assistance payments being reported on the Form 941, 941-PR, or 941-SS, line 12a (Rev 2009 and subsequent).

  2. If Field 02CEM contains a correct entry, Field 02CPM, COBRA Premium Assistance Payment, line 12a, Form 941 (Rev. 2009) must contain a numerical entry.

    Caution:

    If Field 02CEM contains an entry, and the other field is blank, error code 069 will generate.

  3. The field can be blank or numeric, but any entry must be blank, zero, or a positive number.

  4. Invalid Condition: This field is invalid if it is not blank or all numerical.

  5. Correction Procedures: Compare the screen display and the return.

    If Then
    The field was transcribed incorrectly, Enter the correct amount from the return.
    The taxpayer entered an alpha value for a numeric character, Change the alpha entry to the applicable numerical character.

♦Field 02MRN - Number of Qualified Employees Paid Exempt Compensation/Tips— 7 Positions♦

  1. This field is located on Form 941, (Rev April 2010) line 12c. The employer should only complete this field when filing their Form 941 for the second quarter 2010, e.g. April, May, and June, due July 31, 2010. The employer indicates the number of qualified employees paid exempt Compensation or tips in the first quarter 2010, e.g. between March 19 and March 31.

  2. The entry must be no more than 7 numerical characters, e.g. “0” through “9”.

  3. The entry must be a positive entry.

  4. Invalid Condition: This field is invalid when it is negative or other than numeric.

  5. Correction Procedures: Compare the screen display against Form 941 line 12c.

    Note:

    First, review the tax period of the return. If the tax period is other than 201006 (e.g. June 30, 2010), then blank any entry in Field(s) 02MRN, 02MRW, and/or 02MRT.

    If Then
    Transcribed incorrectly, Enter the correct amount from the return.
    The entry on line 12c is a negative amount Treat the entry as a positive entry.
    There is an entry on line 12c and the return is not for the quarter 201006,
    1. Blank the entry or entries (Fields 02MRN, 02MRW and/or 02MRT). If this is the only change to the form a Letter 3024C must be written. A notice will not generate for misinformation reported on lines 12c thru 12e. Use paragraph Y and include the following information: We did not process your request for the employer's share of social security on the exempt Compensation of employee's shown on lines 12c, 12d and/or 12e. These lines should only be completed when filing the second quarter 2010 return. If you already filed your second quarter Form 941, you may need to submit a Form 941X, Adjusted Employer's Quarterly Federal Tax Return.

♦Field 02MRW – March Amount of Exempt Compensation/Tips Paid Qualified Employees- Taxpayer— 14 Positions♦

  1. This field is located on Form 941, (Rev April 2010) line 12d. The employer completes this line on their second quarter 2010 return to show the amount of Compensation or tips paid to qualified employees in the first quarter 2010, e.g. between March 19 through March 31.

  2. The maximum length is 14 numerical characters, e.g. “0” through “9”.

  3. The entry must be in dollars and cents.

  4. The entry must be a positive number.

  5. Invalid Condition:
    This field is invalid when it is negative or other than numeric.

  6. Correction Procedures:
    Compare the screen display against Form 941, (Rev April 2010), line 12d.

    Note:

    First, review the tax period of the return. If the tax period is other than 201006 (e.g. June 30, 2010), then blank any entry in Field(s) 02MRN, 02MRW, and/or 02MRT.

    If Then
    Transcribed incorrectly, Enter the correct amount from the return.
    The entry on line 12d is a negative amount Treat the entry as a positive entry.
    There is an entry on line 12d and the return is not for the 201006 period
    1. Blank the entry or entries (Fields 02MRN, 02MRW and/or 02MRT). If this is the only change to the form a Letter 3024C must be written. A notice will not generate for misinformation reported on lines 12c thru 12e. Use paragraph Y and include the following information: We did not process your request for the employer's share of social security on the exempt Compensation of employee's shown on lines 12c, 12d and/or 12e. These lines should only be completed when filing the second quarter 2010 return. If you already filed your second quarter Form 941, you may need to submit a Form 941X, Adjusted Employer's Quarterly Federal Tax Return.

♦Field 02MRT- Tax Credit On March Exempt Compensation/Tips Paid Qualified Employees— 15 Positions♦

  1. This field is located on Form 941, (Rev April 2010) line 12e. Line 12e shows the employer’s portion of the Social Security tax they paid on the qualified employees Compensation or tips in the first quarter 2010 on Form 941. The tax is taken as a credit against the second quarter 2010 liability shown on the return. The credit amount is computed at 6.2 percent of the wage amount reported on line 12d.

  2. The entry must be in dollars and cents.

  3. The entry cannot exceed 15 numeric characters. e.g. “0” through “9”.

  4. The entry must be a positive number.

  5. Invalid Condition:
    This field is invalid when it is negative or other than numeric.

  6. Correction Procedures:
    Compare the screen display against Form 941, (Rev April 2010), line 12e.

    Note:

    First, review the tax period of the return. If the tax period is other than 201006 (e.g. June 30, 2010), then blank any entry in Field(s) 02MRN, 02MRW, and/or 02MRT.

    If Then
    Transcribed incorrectly, Enter the correct amount from the return.
    The entry on line 12e is a negative amount Treat the entry as a positive entry.
    There is an entry on line 12d and the return is not for the 201006 period
    1. Blank the entry or entries (Fields 02MRN, 02MRW and/or 02MRT). If this is the only change to the form a Letter 3024C must be written. A notice will not generate for misinformation reported on lines 12c thru 12e. Use paragraph Y and include the following information: We did not process your request for the employer's share of social security on the exempt Compensation of employee's shown on lines 12c, 12d and/or 12e. These lines should only be completed when filing the second quarter 2010 return. If you already filed your second quarter Form 941, you may need to submit a Form 941-X, Adjusted Employer's Quarterly Federal Tax Return.

♦Field 02STL- Sub-Total- Taxpayer– 15 Positions♦

  1. The field is located on Forms 941, 941-PR, and 941-SS, line 13 (Rev 2009 through 201312). The field is the combined total of the Federal Tax Deposit amount (Field 02DEP) and the COBRA Premium Assistance Payments amount (Field 02CPM).

  2. Valid field entries are blank, zero, or numerical in dollars and cents.

  3. The field must be a positive field.

  4. Invalid Condition:
    This field is invalid if it is not blank or all numerical.

  5. Correction Procedures:
    Compare the screen display and the return.

    If Then
    The field was transcribed incorrectly, Enter the correct amount from the return.
    The taxpayer enters an alpha value rather than its related numeric character, e.g. writes "one" instead of "1" Change the alpha entry to the applicable numerical character.

♦Field 02B/R - Balance Due/ Overpayment- Taxpayer- 15 Positions♦

  1. The field is on Forms 941, 941-PR, and 941-SS, lines 14 and 15 (Revision 2009 and subsequent) or Line 12 and 13 (Revision 2008 and prior).

  2. The entry is the total amount of tax due or overpaid, after application of the tax deposits.

  3. The entry can be a positive or negative amount shown in dollars and cents.

  4. Invalid Condition:
    This field is invalid if it is not all numeric.

  5. Correction Procedures:
    Compare the screen display and the return. If transcribed incorrectly enter the correct amount from the return.

♦Section 03 (Form 941, 941-PR, 941-SS)♦

  1. The following sections provide information concerning Forms 941, 941-PR and 941-SS, Section 03.

    Field Designator Field Length Title of Field Location on Return
    03A 14 Tax Liability— 1st month Forms 941, 941-PR, and 941-SS- Page 2, line 16, (Revision 2017-2018, 2012- 2013), line 14,( Revision 2014-2016), line 17, (2009 through 2011) "Month 1" , "Month 2" , Month 3, and "Total"
    03B 14 Tax Liability— 2nd month Forms 941, 941-PR, and 941-SS- Page 2, line 16 (Revision 2017-2018, 2012-2013), line 14,(Revision 2014-2016), or line 17, (2009 through 2011) Month 1, Month 2, Month 3, and Total
    03C 14 Tax Liability— 3rd month Forms 941, 941-PR, and 941-SS- Page 2, line 14 (Revision 2016) (line 16, Revision 2017-2018, 2012 through 2015, line 17, 2009 through 2011) Month 1, Month 2, Month 3, and Total

♦Fields 03A through 03C – Monthly Tax Liability -14 Positions♦

  1. The field is line 16 (Revision 2017-2018, 2012 through 2015, or line 14,(Revision 2016) or line 17 (Revision 2009 through 2011)"Tax liability: Month 1" , "Tax liability: Month 2" , and "Tax liability: Month 3" which comprises the Record of Federal Tax Liability (ROFTL) on page 2 of Forms 941, 941-PR, and 941-SS. It is located in Part 2 directly at the top of the page.

  2. Each line within the ROFTL represents a month during the tax quarter. The taxpayer enters their tax liability for that month in the quarter on the applicable line. Then, at the end of the tax quarter, the taxpayer computes the total liability for the quarter, e.g. by adding lines "Tax liability: Month 1" , "Tax liability: Month 2" , and "Tax liability: Month 3" , and showing the computed total on line "Total Liability for Quarter" .

  3. The amounts are always in dollars and cents.

  4. If the return was scanned by SCRIPS, any negative entry will generate a field error. For returns processed through ISRP, negative amounts are forced to appear as positive amounts.

  5. Invalid Condition:
    These fields are invalid if they are not all numeric.

  6. Correction Procedures:
    Compare the screen display and the return.

    If Then
    Transcribed incorrectly, Enter the correct amount from the return.
    A field error generates due to a negative amount, Blank the entry on the display screen.

♦Section 04 (Form 941, 941-PR, and 941-SS)♦

  1. Section 04 contains address information of the tax filing for Forms 941, 941-PR, and 941–SS. The following fields provide the information in Section 04.

    Field Designator Field Length Title of Field Location on Return
    04CON 35 Care of Name Second name line in the Entity portion
    04FAD 35 Foreign Address The address, city, state, or ZIP Code fields in the Entity portion
    04ADD 35 Street Address Entity Portion
    04CTY 22 City Entity Portion
    04ST 2 State Entity Portion
    04ZIP 12 ZIP Code Entity Portion
  2. Section 04 will be present if a return in the entity portion or attachment indicates a change of address.

  3. This section cannot be present on a "G" coded return.

♦Field 04CON "Care of Name" - 35 Positions♦

  1. Field is located in the Entity Section of the return.

  2. Valid characters are alpha, numeric, ampersand, dash, percent (%) or a slash.

    Note:

    The first character of the "In Care of Name" must be alpha or numeric.

  3. Invalid Conditions:
    This field will be invalid if:

    1. The first position is a "%" and the second position is not blank, or

    2. The first position is blank, or

    3. The first character of the "In Care of Name" is not alpha or numeric, or

    4. There are two consecutive blanks between significant characters.

  4. Correction Procedures:
    Correct coding and transcription errors.

    If Then
    A "%" (percent) is in the first position, 1- Verify there is a blank in the second position.

    2- If not blank, enter a blank followed by the "In Care of Name" beginning with an alpha or numeric in Field 04CON.
    A blank is in the first position, 1- Delete the blank.

    2- Enter the "In Care of Name" beginning with an alpha or numeric in Field 04CON.
    The first character of the "In Care of Name" is not an alpha or numeric, 1- Verify the "In Care of Name" on the return.

    2- Enter the "In Care of Name" beginning with an alpha or numeric in Field 04CON.
    Two consecutive blanks are present between significant characters, Delete any unnecessary blanks in Field 04CON.

♦Foreign Addresses- General Information♦

  1. Ogden Submission Processing Center (OSPC) will process returns with foreign/ international and U.S. Possession/ Territorial addresses.

  2. The determination of a foreign address is based only on the address of the return.

    • A foreign (international) address is any address not in one of the 50 U.S. states, or the District of Columbia.

    • All U.S. Possessions/Territories are considered foreign.

      Possession/Territory
      American Samoa
      Federated States of Micronesia
      Guam
      Marshall Island
      The Commonwealth of the Northern Marianna Islands
      Palau
      Puerto Rico
      U.S. Virgin Islands
  3. An Army Post Office (APO), Fleet Post Office (FPO), or Diplomatic Office (DPO) is not a foreign address. The Postal Service established new address requirements for APO/FPO/DPO addresses. If an address appears in the old APO/FPO/DPO format, such as "APO New York, NY 091XX" , convert to the new State code based on the ZIP Code as follows "APO AE 091XX" .

  4. All returns with a foreign address must be shipped to OSPC.

    1. SSPND 650.

    2. Attach Form 4227 with the notation "FORWARD TO OSPC" .

    3. Prepare Letter 86C to inform the taxpayer that the return has been sent to Ogden.

♦Foreign Addresses- (OSPC Only)♦

  1. A foreign address will contain:

    • Street address or P.O. Box

    • City or town name

    • Other principal subdivision (i.e., province, state, county, etc.)

    • Postal code, if present

    • Foreign country

  2. Returns with addresses in the U.S. Possessions/Territories are considered to be a foreign return for processing purposes only and are entered in the same way as domestic addresses.

    1. A two-character alpha code must be entered in Field 04ST for the possession name.

      US Possession Abbreviation
      American Samoa AS
      Federated States of Micronesia FM
      Guam GU
      Marshall Islands MH
      The Commonwealth of the Northern Marianna Islands MP
      Palau PW
      Puerto Rico PR
      Virgin Islands (U.S.) VI
    2. A ZIP Code must be present for a U.S. Possession/ Territory. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries for the correct ZIP Code.

♦Field 04FAD–Foreign Address♦

  1. Field 04FAD is located in the Entity Section of the return.

    • This field will contain an entry when there is a foreign address present on the return.

    • Field 04FAD should not be present on "G" coded short length returns.

  2. Invalid Conditions:
    Field 04FAD will generate as an error when any of the following conditions are present:

    • The first position is blank.

    • Any character follows two consecutive blanks.

    • There are more than 35 characters present in the field.

      Note:

      ISRP is instructed to input a pound sign (#) as the 35th character if there are more than 35 characters present for this field on the return.

  3. Correction Procedures:
    Correct all coding and transcription errors.

    If Then
    Field 04FAD is present. 1- GTSEC 04

    2– Ensure Field 04CTY contains a foreign country code and Field 04ST contains a "." (period/space)
    A foreign address is not present on the return 1- Verify the address on the return is not a foreign address.
    2- SSPND 610
    3 Renumber return with domestic DLN.
  4. If Form 8822, Change of Address or Form 8822-B Business Change of Address is attached to the return, compare the name and address information on the Form(s) 8822/8822-B to the return.

    If Then
    The information is the same Take no action and continue processing.
    The information is different 1– Detach Form 8822.

    2– Route to Entity Control on Form 4227 or follow local procedures.

    3– Notate on Form 4227, "CHANGE OF ADDRESS PER FORM 8822/8822–B"

    Note:

    The lead tax examiner is required to batch all Forms 8822/8822–B daily and hand carry to Entity Control for expedite processing.

♦Field 04ADD - Street Address♦

  1. This field is located in the entity section of the return. This section will contain data, if the taxpayer has:

    • Corrected the address (e.g. by using a new address), or.

    • Checked the change of address box and entered a new address entry, (e.g., edited an address on a label).

    Note:

    Always look for the Large Corporation Indicator (right below ENMOD) and if present suspend using Action Code 320 Entity Control.

  2. If both a mailing address and a location address are present and have been changed, Section 04 will not be present as these changes will have been input through IDRS.

  3. This section will not be present if Field 01CCC contains CCC "G" .

  4. Invalid Conditions:
    This field will be invalid if:

    1. Any character other than alphabetic, numeric, blank, hyphen, or slash is present, or

    2. Any character follows two consecutive blanks, or

    3. If the first position is not an alpha or numeric character.

    4. There are more than 35 characters in the field.

      Note:

      SCRIPS or ISRP are instructed to input a pound sign (#) as the 35th character if there are more than 35 characters present for this field on the return.

  5. Correction Procedures:
    Correct coding and transcription errors.

    If Then
    The first position is blank, All positions must be blank.
    Field 04ADD is present Fields 04CTY, 04ST, and 04ZIP must be present.
    Street address is in error and/or not available, and a valid Major City Code is present, Enter the city in Field 04CTY (spelled out, not in Major City format) and State code in Field 04ST.
    A good address cannot be located, Delete the address and revert back to INOLE.

♦Field 04CTY City♦

  1. This field is located in the entity section of the return. Certain cities within each state are designated "Major Cities" , and assigned a special code of two alpha characters.

  2. ISRP or SCRIPS will enter the Major City code, as appropriate. This code represents the city within that state.

  3. It is transcribed on the Error Record with no intervening blanks or other characters in the city-state fields.

  4. Invalid Conditions:
    This field is invalid if:

    1. The first position is blank.

    2. Any character is present other than blank or alphabetic.

    3. Any character follows the first two adjoining blanks.

    4. The Major City Code does not match any of the valid codes in the Major City Code table.

    5. Foreign country code is not valid or Field 04CTY contains "XX" .

  5. Correction Procedures:
    Correct any coding and transcription errors. Determine if a Major City Code is being used.

    If Then
    A Major City Code is used Field 04CTY must be present.
    Field 04CTY contains an error, Check to see if the Major city code is correct.
    Field 04CTY is not valid and a Major City Code cannot be determined, Input the entire city name.
    A Major City Code is not used and Field 04CTY is present, Field 04ST must be present.
    A foreign address is shown on the return, Enter appropriate foreign country code in Field 04CTY from Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.
    Field 04CTY contains an incorrect country code or "XX" Enter appropriate foreign country code in Field 04CTY from Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

♦Field 04ST♦

  1. The field is located in the entity section of the return.

  2. Invalid Condition:
    This field is invalid if it is not one of the State Abbreviations, APO/DPO/FPO codes, or U.S. Possessions shown in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

  3. Correction Procedures:
    Correct any coding and transcription errors. For a list of valid State Codes, see Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries.

    If Then
    Unable to perfect DLSEC 04.
    Form 8822, Change of Address is attached to the return or Form 8822-B, Change of Address or Responsible Party-Business Compare the name control, EIN, address, City, State and ZIP Code information on the Form 8822 or 8822-B to the return.

♦Field 04ZIP– ZIP Code♦

  1. This field is located in the entity section of the return.

  2. Invalid Condition:
    This field is invalid if not all numeric or five numerics followed by four blanks.

  3. Correction Procedures:
    Compare the screen display and the return.

    If Then
    Transcribed incorrectly, Enter the correct entry from the return or the attachments. Only the first five digits are required to be entered if nine digits are present.
    A valid ZIP Code is not available from the return or attachments, Research using INOLE or use Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries to determine the first 3 digits of a valid ZIP code for the Major City.
    There is no record using research, Use DLSEC 04.
    The Major City is not listed in Document 7475, or the first 3 digits cannot be determined, 1– Enter the first 3 digits of the State shown in the address. Refer to Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries, for the correct digits for the State.

    2– Enter "01" for the fourth and fifth digits.

♦Sections 05, 06 and 07 (Form 941, 941-PR, 941-SS)♦

  1. The following sections provide information concerning Form 941, 941-PR and 941-SS, Section 05, Form 941-B. See Exhibit 3.12.13-5, for a current Form 941-B with field designators.

    Schedule B Summary    
    05A02 14 Daily Tax Liab.
    05A03 14 Daily Tax Liab.
    05A04 14 Daily Tax Liab.
    05A05 14 Daily Tax Liab.
    05A06 14 Daily Tax Liab.
    05A07 14 Daily Tax Liab.
    05A08 14 Daily Tax Liab.
    05A09 14 Daily Tax Liab.
    05A10 14 Daily Tax Liab.
    05A11 14 Daily Tax Liab.
    05A12 14 Daily Tax Liab.
    05A13 14 Daily Tax Liab.
    05A14 14 Daily Tax Liab.
    05A15 14 Daily Tax Liab.
    05A16 14 Daily Tax Liab.
    05A17 14 Daily Tax Liab.
    05A18 14 Daily Tax Liab.
    05A19 14 Daily Tax Liab.
    05A20 14 Daily Tax Liab.
    05A21 14 Daily Tax Liab.
    05A22 14 Daily Tax Liab.
    05A23 14 Daily Tax Liab.
    05A24 14 Daily Tax Liab.
    05A25 14 Daily Tax Liab.
    05A26 14 Daily Tax Liab.
    05A27 14 Daily Tax Liab.
    05A28 14 Daily Tax Liab.
    05A29 14 Daily Tax Liab.
    05A30 14 Daily Tax Liab.
    05A31 14 Daily Tax Liab.
    05A> 16 Total Tax Liability Month 1
    (Computer Generated)

    Note:

    The location on the return is: Schedule B (or for Form 941-PR, Schedule B (PR))
    1st Months liabilities are Fields 05A01 - 05A31.
    2nd Months liabilities are Fields 06B01 - 06B30
    3rd Months liabilities are Fields 07C01 - 07C31.

♦Fields 05A01 through 07C31♦

  1. These fields are located on the Schedule B (or for Form 941-PR, Schedule B (PR)) and are shown as dollars and cents.

  2. Invalid Condition:

    1. If they are not all numeric, or

    2. For tax periods 199303 and prior, or

    3. If there is an entry in day 29 (in a non-leap year) or 30 for February, or an entry in day 31 for April, June, September and/or November.

    4. If the entry is a negative entry.

  3. Correction Procedures:
    Compare the screen display against the return. Also verify the tax period.

    If Then
    Transcribed incorrectly, Enter the correct amount or tax period from the return.
    There is a negative entry on any day during the month (line 1 through the last day of the month),
    1. Review the Schedule B to determine whether the entry was captured correctly as a negative.

    2. If the Schedule B shows the entry as a negative, blank the entry on the screen display.

    3. If the Schedule B shows the entry not as a negative, correct the entry on the screen display.

    4. After all corrections, transmit.

    There is an entry in day 29, 30 or 31 for the month of February or an entry in day 31 for one of the following months: April, June, September or November, 1– Move the entry into the last valid day of the month.

    2– There is an entry in that field, add the last two entries together and place the results in the last valid day.

♦Form 941 Consistency/Math Error Processing (Priority IV)♦

  1. This section provides procedures for correcting consistency and math errors (Priority IV) for Form 941.

  2. For an explanation of these errors, see IRM 3.12.13.5.4.

    Caution:

    Whenever an error occurs due to apparent misplaced entry by the taxpayer, correct the misplaced entry.

    Example:

    Taxpayer enters total tax figure on line 10 Form 941 for a 2017 return. Line 12 is the total tax line for 2017 not line 10 as on previous revisions. In this case EC 100 would generate and you would remove the amount reported in Field 02SP. This should clear the error and we will not issue a notice that would double the tax reported.

♦Error Code 001♦

  1. Fields Displayed:

    Field Designator Field Name Length
    01TXP Tax Period 6
    01RCD Received Date 8
    01CCC Computer Condition Code 10
  2. Invalid Conditions:
    Error Code 001 will generate when any of the following conditions are present:

    1. Computer Condition Code "G" is not present, and the processing date is equal to or more than 2 years and 10 months after the Return Due Date or received date (whichever is later) and CCC "W" is not present.

    2. Computer Condition Code G is present, and the processing date is equal to or more than 2 years and 10 months after the Return Due Date and CCC "W" is not present, or

    3. On any other return, if the processing date is less than two years after the Return Due Date and CCC "W" is present

  3. Correction Procedures:

    1. Correct all misplaced entries, coding and transcription errors.

    2. Do not send the following returns to Statute Control for clearance. Instead, enter "W" in Field 01CCC and continue processing:
      Any return secured by Compliance (i.e., 6020(b)),
      Any return secured by Examination /Collections,
      Any return with a transaction code (TC) 59X,
      Any return with ICS (Integrated Collection System) noted on the face of the return,
      Any return that is a Substitute for Return prepared by Examination ("SFR" in the margin) with Form 13133 (Expedite Processing Cycle) attached.

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

    If Then
    Field 01RCD is blank, 1– Determine the received date, as shown in IRM 3.12.13.24.4, when one is needed but is not stamped on the return or a valid handwritten received date is not present.
    CCC "W" was entered incorrectly, Delete CCC "W" from Field 01CCC.
    The return has a stamp that indicates a previous clearance by Statute Control within the last ninety days Enter CCC "W" in Field 01CCC.

    Note: Do not send the return to Statute Control
    The return is not stamped by Statute Control within the last ninety days 1– SSPND 310.

    2– Prepare Form 4227 to route to Statute Control.

    Caution:

    Timely filed returns for all quarters of Form 941, 941-PR, or 941-SS have the same assessment expiration date. For example, timely filed Form 941 returns for 201003, 201006, 201009 and 201012 have a normal statute expiration date of April 15, 2014, e.g. three years from April 15th, 2011.

  5. Suspense/Rejects Procedures:

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

    2. If Statute Control requests the record to be voided to them, SSPND 640.

♦Error Code 002♦

  1. Fields Displayed:

    Field Designator Field Name Length
    CL Clear Code 1
    01NC Name Control/Check Digit 4
    01NC> Name Control- Computer Generated 4
    01EIN Employer Identification Number 9
    01TXP Tax Period 6
    04CON "In Care of" Name 35
    04FAD Foreign Address 35
    04ADD Street Address 35
    04CTY City 22
    04ST State 2
    04ZIP Zip Code 12
  2. Invalid Condition:
    EC 002 will generate when the name control mismatched against the National Account Profile (NAP) or Entity Index File (EIF).

  3. Correction Procedures:

    1. Before taking any additional research to resolve Error Code 002, drop the cursor to the bottom of the screen and transmit. This will ensure that any prior changes to the name control have posted to the National Account Profile (NAP). If Error Code 002 reappears, continue with the remainder of the correction procedures.

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

    3. Correct all misplaced entries, coding and transcription errors.

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

    5. Refer to all the following research instructions in this EC before taking any action.

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

      If Then
      The name on the return or attachment matches the name control on INOLES, Bring up underprint.
      The name control on INOLES is different from the Name on the return or attachment, Research IDRS using Command Code NAMEE/NAMEB for a new EIN.
    7. If a new EIN is located, verify the name control using CC INOLES.

      If Then
      The name control on INOLES matches the Name on the return or attachment 1- Ensure that the entity information matches the return.
      2- Overlay Field 01EIN with the new EIN from NAMEE/NAMEB. When the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return.

      Note:

      Do not send Letter 3875C if three or less digits of the EIN are transposed, different, or missing, or when INOLES indicates the account has been "merged to" or "merged from" or when the taxpayer uses a Social security number (SSN) on a BMF return, and your research has determined there is no entity on Master File with that number sequentially entered in EIN format.

      Multiple EINs are located, 1- SSPND 320 to Entity Control. 2- Prepare Form 4227 with the notation MULTIPLE EINs
      INOLES indicates a "Merge To" (MT) EIN, Research the "MT" EIN on Command Code INOLES
      The "MT" EIN matches the entity on the return or attachment Enter the "MT" EIN in Field 01EIN.

      Note:

      Do not send Letter 3875C on "merged to" or "merged from" cases.

      The "MT" EIN does not match the entity on the return or attachment, SSPND 320 to Entity Control.
    8. If the Name on the return or attachment does not agree with the name control on INOLES or there is an indication of a name change on Form 941 941-PR, or 941-SS, research IDRS using Command Code ENMOD for a new name.

      If Then
      The name control on ENMOD matches the Name on the return or attachment, Enter "C" in the Clear Code Field.
      The name control on ENMOD or INOLES does not match the Name on the return or attachment, 1. SSPND 320 to route the return to Entity.
      2. Attach Form 4227 with the notation "NO RECORD"
    9. If the Name change has not been made, research ENMOD for a pending TC 013.

      If Then
      A pending TC 013 is present, Enter "C" in the Clear Code Field.
      A pending TC 013 is not present, 1. SSPND 320 to route to Entity.
      2. Attach Form 4227 with the notation "REQUEST NAME CHANGE (TC 013)" .
  4. Suspense/Rejects Procedures:

    1. If there is an indication that Entity has assigned an EIN to the return, determine the Entity Assignment Date.

      If Then
      The Entity Assignment Date is past the Return Due Date and received date, 1. GTSEC 01.
      2. Enter the Entity Assignment Date in Field 01CRD.
      The Entity Assignment Date is not past the Return Due Date Continue Processing
    2. Research IDRS using CC BMFOL to determine if payments posted incorrectly:

      If Then
      The payment posted to the wrong EIN, 1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module.
      2. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION RELEASE FREEZE"
      3. Write, "FORM 3465 PREPARED" on return to the left of the Entity section.
      4. Enter CCC "X" in Field 01CCC.
      The payment posted correctly, 1. Enter the correct EIN in Field 01EIN and on the return.
      2. Enter "C" in the Clear Code Field
      Payment cannot be located, Enter "C" in the Clear Code Field

♦Error Code 003 – Check Digit Invalid♦

  1. Fields Displayed

    Field Designator Field Name Length
    01NC Name Control 4
    01EIN Employer Identification Number 9
  2. Invalid Condition – Error Code 003 will generate when any of the following conditions are present:

    • A check digit is present but is not valid for the EIN.

    • The letters "E" , "G" or "M" (in check digit only) are present in Field 01NC.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding and transcription errors.

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

      If Then
      The check digit in Field 01NC does not match the return or is not legible, Enter the Name Control from the return in Field 01NC.
      The EIN on the return is not legible, Research IDRS using CC NAMEB/NAMEE for correct EIN.
    3. Compare the EIN from CC NAMEB/NAMEE to the EIN on the return.

    If Then
    The EIN on the form matches the EIN on NAMEB/NAMEE, Enter Name Control from NAMEB/NAMEE in Field 01NC.
    Research indicates a different EIN, Verify the EIN and name on INOLES.
    Name Control on INOLES matches the name on the return or attachment,
    1. Overlay Field 01EIN with the EIN from INOLES.

    2. Issue Letter 3875C as a non-suspense letter to the address on the return.

      Note:

      Do not send Letter 3875C when:
      • Three or less digits of the EIN are transposed, different, or missing, or
      • INOLES indicates the account has been “merged to” or “merged from”, or
      • The EIN on the return is the taxpayer's SSN and research shows there is no valid entity on Master File for that EIN.

    Unable to locate an EIN or more than one EIN is located,
    1. SSPND 320 to Entity Control.

    2. Prepare Form 4227 with the notation "NO RECORD OF EIN" .

  4. Suspense Correction:

    1. Research IDRS using CC BMFOL to determine if payments posted incorrectly:

    If Then
    The payment posted to the wrong EIN,
    1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module.

    2. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION AND RELEASE FREEZE" .

    3. Write "FORM 3465 PREPARED" on the return, to the left of the Entity section.

    4. Enter CCC "X" in Field 01CCC.

    The payment posted to the correct EIN, Enter the correct EIN in Field 01EIN and on the return
    Payment cannot be located, Enter "C" in the Clear Code field.

♦Error Code 004♦

  1. Fields Displayed:

    Field Designator Field Name Length
    CL Clear Code 1
    01NC Name Control 4
    >>> Name Control Underprint 4
    01EIN Employer Identification Number 9
  2. Invalid Conditions:
    Error Code 004 will generate when:

    1. The EIN is not present at Master File

    2. The Entity Index File (EIF) and the NAP were not accessed or were not operational, causing a blank underprint in Field 01NC.

  3. Correction Procedures:

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

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

    3. Correct all misplaced entries, coding and transcription errors.

    4. Compare the displayed fields with the return and any attachment. If incorrect, overlay the screen with the correct information.

    5. Refer to all the following research instructions in this EC before taking any action.

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

      If Then
      The Name on the return or attachment matches the name control on INOLES Bring up the underprint.
      The name control on INOLES is different from the Name on the return or attachment, Research NAMEE/NAMEB for a new EIN.
    7. If a new EIN is located, verify the name control using CC INOLES.

      If Then
      The name control on INOLES agrees with the Name on the return or attachment, 1. Ensure that the Entity information matches the return.
      2. 4) Overlay Field 01EIN with the new EIN from NAMEB/NAMEE. When the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return

      Note:

      Do not send Letter 3875C if three or less digits of the EIN are transposed, different or missing, or when INOLES indicates the account has been "merged to" or "merged from" or when the taxpayer uses a Social security number (SSN) on a BMF return, and your research has determined there is no entity on Master File with that number sequentially entered in EIN format.

      Multiple EINs are located, 1- SSPND 320 to Entity Control.
      2- Prepare Form 4227 with the notation "MULTIPLE EINs" .
      INOLES indicates a "Merge To" (MT) EIN, Research the "MT" EIN on INOLES
      The "MT" EIN matches the entity on the return or attachment, Enter the "MT" EIN in Field 01EIN.
      The "MT" EIN does not match the entity on the return or attachment SSPND 320 to Entity Control.
    8. If the Name on the return or attachment does not agree with the name control on INOLES or there is an indication of the name change on Form 941/941-PR/941-SS, research ENMOD for the new name.

      If Then
      The name control on ENMOD agrees with the Name on the return or attachment, Enter a "C" in the Clear Code Field.
      The name control on ENMOD or INOLES does not agree with the Name on the return or attachment, 1- SSPND 320 to route to Entity Control.
      2- Attach Form 4227 with the notation "NO RECORD."
    9. If the Name change has not been made, research ENMOD for a pending TC 013.

      If Then
      A pending TC 013 is present, Enter C in the Clear Code Field.
      A pending TC 013 is not present 1. SSPND 320 to route to Entity Control.
      2. Attach Form 4227 with the notation "REQUEST NAME CHANGE"
  4. Suspense/Rejects Procedures:

    1. If there is an indication that Entity Control has assigned an EIN to the return, determine the Entity Assignment Date.

      If Then
      The Entity Assignment Date is past the Return Due Date and received date. 1- GTSEC 01
      2- Enter the Entity Assignment Date in Field 01CRD.
      The Entity Assignment Date is not past the Return Due Date and received date. Continue Processing.
    2. Research IDRS using CC BMFOL to determine if payments posted incorrectly.

      If Then
      The payment posted to the wrong EIN, 1. Prepare Form 3465, Adjustment Request, to have the payment transferred to the correct module.
      2. Notate on Form 3465, "MOVE PAYMENT TO CORRECT MODULE UPON COMPLETION RELEASE FREEZE"
      3. Write, "FORM 3465 PREPARED" on return to the left of the Entity section.
      4. Enter CCC "X" in Field 01CCC.
      The payment posted correctly, 1. Enter the correct EIN in Field 01EIN and on the return.
      2. Enter "C" in the Clear Code Field
      Payment cannot be located, Enter "C" in the Clear Code Field

♦Error Code 005 Invalid Tax Year or Received Date♦

  1. Fields Displayed:

    Field Designator Field Name Length
    CL Clear Code 1
    01TXP Tax Period 6
    01RCD Received Date 8
  2. Invalid Condition: Error Code 005 will generate when the year-month of the processing date is later than the Tax Period plus six months and the Received Date is not present.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding and transcription errors.

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

    3. A Received Date must be in Field 01RCD if the return is not timely filed.

    4. Use the earliest Received Date in Field 01RCD if there are multiple received dates on the return.

      Exception:

      Do not use a Received Date in Field 01RCD that is prior to the beginning of the tax period.

    5. Determine the Received Date using the following priority when one is needed but is not stamped on the return or a valid handwritten Received Date is not present.

    • Earliest legible Postmark Date (e.g., U.S. Postal Service, Foreign or Private Delivery Service).

      Note:

      If an envelope is not attached, use the postmark date stamped on the face of the return.

    • Service Center Automated Mail Processing System (SCAMPS) digital date.

    • Revenue Officer's or other IRS official's signature date.

    • Signature date, if within the current year (unless other information indicates signature date is invalid)

    • Julian Date of the Document Locator Number (DLN) minus 10 days.

    • Current Date minus 10 days.

  4. If a return has been faxed to another area of the service and then sent to Submission Processing for processing, do not enter the Enterprise Electronic Fax (EEFax) Date as the IRS Received Date. Enter a Received Date according to normal procedures.

    Caution:

    The EEFax Date cannot legally be used as an IRS Received Date.

♦Error Code 006♦

  1. Fields Displayed:

    Field Designator Field Name Length
    RMIT> Remittance Amount 15
    01TXP Tax Period 6
    01RCD Received Date 8
  2. Invalid Condition:
    The error will generate when the remittance is received with return, but received date is not present.

  3. Correction Procedures:

    1. Compare the screen display and the return.

      If Then
      Transcribed incorrectly, Enter the correct entry from the return.
      The received date is missing or illegible,

      Note:

      When multiple returns are received in an envelope, the envelope is attached to the first return to establish a received date. Subsequent returns in the envelope should have the received date stamped or edited to the upper left corner of each return.

      1- Determine the received date using the instructions in IRM 3.12.13.24.4.
      Multiple dates are on the return, Use the earliest date as the received date.

♦Error Code 007♦

  1. Fields Displayed:

    Field Designator Field Name Length
    01TXP Tax Period 6
    01RCD Received Date 8
    01CCC Computer Condition Code 10
  2. Invalid Condition:
    The received date is earlier than the first day of the tax period.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding, and transcription errors.

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

      If Then
      The Received Date is invalid and it appears that the incorrect year was used (i.e., 20110116 instead of 20120116), and other information (e.g. Julian date, postmark date, and/or signature date) indicates the received date should be a current year. Change the received date year to the current year in Field 01RCD.
      The return is an early filed "Final" return 1. Review the Tax Period on the return. If the Tax Period month is June, September, or December, e.g. other than March (the first quarter), and the day the examiner is resolving the error condition is at least the first day or later into the Tax Period quarter shown on the return, change the received date to the first day of the current quarter

      Example:

      Form 941 returns showing the December quarter can be processed beginning October 1. It is the first day of the October through December quarter.


      2. Enter an "F" in Field 01CCC.
      The return is not an early filed "Final" return, (e.g. transcription error in tax period or year of the received date, etc.) 1. Delete the received date on the screen, and circle the received date on the return.
      2. Delete the "F" in 01CCC. and circle it out on the return.
      It appears the return is timely filed,

      Note:

      Check the signature and Julian date and determine if they agree with the timely filing.

      Delete the received date.
      The return is for the current quarter, but not timely filed, e.g. Julian date supports a non-timely filing. Follow received date procedures and input the Julian date minus 10 days.
      There is no clear indication that the return is final, Treat as unprocessable and initiate correspondence for clarification of the tax period. Suspend in Action Code 211.
  4. Suspense/Rejects Procedures:

    1. For responses to correspondence, follow the If/Then table.

      If Then
      The taxpayer replies that the return is an early filed "Final" return, Review the Tax Period on the return. If the Tax Period month is June, September, or December, e.g. other than March (the first quarter), and the day the examiner is resolving the error condition is at least the first day or later of the Tax Period quarter shown on the return, delete the received date and make sure CCC “F” is entered. Continue to process.

      Example:

      Form 941 returns showing the December quarter can be processed beginning October 1. It is the first day of the October through December quarter.


      2. Enter an "F" in Field 01CCC.
      The taxpayer replies that the return is not an early filed "Final" return, (e.g. transcription error in tax period or year of the received date, etc.) Delete the received date on the screen, and circle the received date on the return. Also, delete the "F" in 01CCC. and circle it out on the return. Continue to process.
      The taxpayer fails to respond or the response is inadequate, 1. Enter "3" in Field 01CCC.
      2. Continue to process.

♦Error Code 010♦

  1. Fields Displayed:

    Field Designator Field Name Length
    01CCC Computer Condition Code 10
    01SIC Schedule Indicator Code 1
    01ARN Applied Refund Indicator 1
    0101 Number of Employees  
    S02DP Section 02 Present  
    S03NP Section 03 Not Present  
    S04DP Section 04 Present  
    S05NP Section 05 Not Present  
    05A> Monthly Liability Computer Generated 15
    S06NP Section 06 Not Present  
    06B> Monthly Liability Computer Generated 15
    S07NP Section 07 Not Present  
    07C> Monthly Liability Computer Generated 15
  2. Invalid Condition:
    CCC "G" is present and fields other than 01NC, 01EIN, 01TXP, 01RCD, 01CCC, and 01CRD are present.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding and transcription errors

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

    3. Determine if CCC "G" was input correctly.

      If Then
      Return indicates amended, revised, supplemental, corrected or superseding, Research the applicable Command Code(s) BRTVU, BMFOL, SUMRY, and/or TXMOD to determine if information is exactly the same as the posted return.
      All information is not the same, 1. Process the return with CCC G.
      2. DLSEC to delete all sections, except Section 01.
      3. Delete the invalid entries that are present in Section 01. GTSEC if necessary.
      All information is exactly the same, SSPND 640 and route to Rejects
      A return is not posted for the tax period and the return is an amended return, Continue processing as an amended return.
      A return is not posted for the tax period and the return is not amended; (i.e., "G" coded in error) 1– Enter all data in Sections 02 through 07.

      2– Ensure that Section 01 fields are correct.

      3– Delete the "G" in Field 01CCC.
      4- SSPND 640 using form 4227 notating duplicate return.

      Note:

      When deleting CCC "G" and the section required is shown as being present, no further verification of section entries is needed.

♦Error Code 011♦

  1. Fields Displayed:

    Field Designator Field Name Length
    RMIT> Remittance Amount Computer Generated 15
    01RCD Received Date 8
    01CCC Computer Condition Codes 10
    01ARN Applied Refund Indicator 15
    S02NP Section 02 Not Present  
  2. Invalid Condition:
    An RPS amount or a remittance amount is present, and there is no data in Section 02 and a valid CCC "G" is not present.

  3. Correction Procedures:
    Compare the screen display and the return.

    If Then
    The record is to be edited with a CCC "G" , 1– Section 02 is not necessary. Enter the CCC "G" in Field 01CCC.

    2– Verify that the received date is present, and enter it in Field 01RCD.
    Data is present on the return for the fields in Section 02, Use CC GTSEC 02 and enter the appropriate data in those fields on the screen.
    There is no money amount in the RMIT> field, and an RPS/ISRP indicator is present, 1– Use CC GTSEC to view Section 2.

    2– Enter $.01 in Field 02TT, Total Tax-Taxpayer.

    3– Continue processing.
    No data is present and you are unable to determine from the return or attachments where to apply the remittance amount, 1– Suspend the record with SSPND 355. The Rejects unit will research using IDRS to secure the data and transfer the credit to the appropriate tax class or module.

    2– If not found, correspond with the taxpayer with an explanation following normal correspondence procedures. Suspend the record with Action Code 21X.

    3– Rejects Unit will transfer the credit(s) to the appropriate tax class or module per reply.
    You are unable to determine where to apply the excess remittance, Leave Field 01ARN blank. The excess remittance will be applied to the next tax period.

♦Error Code 014♦

  1. Fields Displayed:

    Field Display Field Name Length
    04CON In Care of Name 35
    04FAD Foreign Address 35
    04ADD Street Address 35
    04CTY City 22
    04ST State 2
    04ZIP Zip Code 12
  2. Invalid Conditions:
    This error will generate when any of the following conditions are present:

    1. If the Street Address is present, Fields 04CTY and 04ST must be present, unless a Major City Code is used.

    2. If a Major City Code is used, Field 04ADD must be present.

    3. Field 04CTY must be present. If the city is not in the Major City format, Field 04ST must be present. Field 04ADD can be blank.

    4. A Major City Code is used and Field 04ST is present.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding and transcription errors.

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

    3. Research any of the following for valid address information: Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries and/or INOLES, NAMEB, NAMEE or ENMOD.

    If And Then
    A Major City Code is present, No street address is available, Enter the city in Field 04CTY (spelled out, not in Major City format) and state code in Field 04ST.
    The Major City Code is correct The state is present, DLSEC to delete Field 04ST.
    The ZIP Code or the address cannot be corrected from the information on the return,   Use DLSEC to delete Section 04.

♦Error Code 015♦

  1. Fields Displayed:

    Field Display Field Name Length
    04CON In Care of Name 35
    04FAD Foreign Address 35
    04ADD Street Address 35
    04CTY City 22
    04ST State 2
    04ZIP Zip Code 12
  2. Invalid Condition:
    Error Code 015 will generate when any of the following conditions are present:

    • Field 04ST has an entry other than ". (period/space) when the foreign address Field 04FAD is present."

    • Field 04ZIP has an entry when the foreign address Field 04FAD is present.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding, and transcription errors.

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

      If Then
      A foreign address is present in Field 04FAD 1- Field 04ST must contain "." (period/space)
      2– Delete any entry in Field 04ZIP if present.
      A foreign address is not present in Field 04FAD Check return for foreign address.
      A foreign address is present on the return 1– Enter the foreign address in Field 04FAD.

      Note:

      If additional space is required, continue entering the address in Field 04ADD



      2– Field 04CTY must contain the appropriate foreign country code. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries
      Exception: Use the country code based on the province in Field 04FAD. if the foreign address is from Canada and the address contains a province name or abbreviation
      3– Field 04ST must contain "." (period/space).
      4– Delete any entry in Field 04ZIP.
      A foreign address is not present on the return 1- Verify the address on the return is not a foreign address.
      2– SSPND 610
      3- Renumber return with domestic DLN.

♦Error Code 016♦

  1. Fields Displayed:

    Field Display Field Name Length
    04CON In Care of Name 35
    04FAD Foreign Address 35
    04ADD Street Address 35
    04CTY City 22
    04ST State 2
    04ZIP Zip Code 12
  2. Invalid Condition:
    Error Code will generate when the ZIP Code is inconsistent with the Major City or State Code.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding and transcription errors.

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

    3. Research Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries or INOLES, NAMEB/NAMEE, and/or ENMOD for valid Zip Code information.

    If And Then
    You are unable to determine a valid ZIP code from the return or an attachment   Enter the valid ZIP Code found through research in Field 04ZIP.
    The address is in a major city A Major City Code can be determined, Enter Major City Code in Field 04CTY. See Document 7475.
    The address is in a major city A Major City Code cannot be determined 1- Enter the name of the city in Field 04CTY.
    2- Enter the State Code in Field 04ST.
    The address is not in a major city,   1. Enter the appropriate State abbreviation in Field 04ST.
    2. Enter the ZIP Code in Field 04ZIP.
  4. If only the three digits of the ZIP Code can be determined, enter "01" in the fourth (4th) and (5th) positions.

    If And Then
    You are unable to determine a valid ZIP code from the return or an attachment   Enter the valid ZIP Code found through research in Field 04ZIP.
    The address is in a major city A Major City Code can be determined, Enter Major City Code in Field 04CTY. See Document 7475.
    The address is in a major city A Major City Code cannot be determined 1- Enter the name of the city in Field 04CTY.
    2- Enter the State Code in Field 04ST.
    The address is not in a major city,   1. Enter the appropriate State abbreviation in Field 04ST.
    2. Enter the ZIP Code in Field 04ZIP.
  5. APO/FPO/DPO Addresses: An Army Post Office (APO), Diplomatic Post Office (DPO) or Fleet Post Office (FPO) is not a foreign address. The U.S. Postal Service established new address requirements for APO/DPO/FPO addresses. If an address appears in the old APO/FPO format, convert to the new State Code abbreviation based on the ZIP Code chart below:

    Zip Code State Code
    340 AA
    090 - 098 AE
    962 - 966 AP

♦Error Code 018♦

  1. Fields Displayed:

    Field Display Field Name Length
    CL Clear Code 1
    01TXP Tax Period 6
    02ITW Total Income Tax Withheld 15
    02QW Current Year's Income Tax Withheld 15
    02SW Special Additions to Federal Income Tax 15
    02SS Special Additions to SS and Medicare Tax 15
    02TA Total Adjustments 15
    02TA> Total Adjustments Computer 15
  2. Invalid Condition:
    Field(s) 02QW or 02SW appear on a first quarter return for tax period 200812 or prior.

  3. Correction Procedures:

    1. Compare the screen display and the return.

      Note:

      Error Code 018 generates only if the tax period of the return began on or before December 31, 2008, and if the return being filed is a Form 941, Revision 2005 through 2008.

      If Then
      The taxpayer entered an amount on line(s) 7d through 7f, and the return is for a period 200812 or prior, Enter Action Code 640 to have the return voided. After the DLN has been voided route the return with Form 4227, to AM.

      Caution:

      We can no longer allow forms 941 with Form 941C attached to be processed. Send complete file to AM.

♦Error Code 022♦

  1. For 6020(b) procedures see below:

    If Then
    The return was prepared under Section 6020(b) by a Revenue Officer. Review the return to determine if it was signed by the Revenue Officer.
    • If the return is unsigned, SSPND AC640 to have the DLN cancelled. After the DLN is cancelled, route the return as instructed in IRM 3.12.13.21.

    • If the return is signed, check the return for any transcription errors and correct the return, as needed. Do not correspond with the taxpayer.

      Note:

      The Total Tax on the return cannot change. The Total Tax amount must be assessed as submitted by the Revenue Officer.

    A CCC 4 is not present in 01CCC, Enter CCC 4 in Field 01CCC.
    An IRC 6020(b) return is incomplete or blank on lines 5a, 5b, or 5c, Divide the amount in Field 02TSM by .153 or .133 for 2011 or 2012 returns and enter the result in Field 02SSW, and in Field 02MED.
  2. Fields Displayed:

    Field Designator Field Name Length
    0204 Exempt from SS and Medicare Tax Indicator 1
    02SSW Taxable SS Compensation 15
    02SST Taxable SS Tips 15
    02MED Taxable Medicare Compensation and Tips 15
    02XMT Additional Taxable Medicare Compensation and Tips 15
    02TSM Total SS and Medicare Taxes 15
    02TSM> Total SS and Medicare Taxes 15
    02EW Exempt Compensation/Tips Paid Qualified Employees 15
    02TW Tax on Exempt Compensation/Tips Paid Qualified Employees 15
    02TT Total Tax Taxpayer 15
  3. Invalid Condition:
    The total amount of Fields 02SSW and 02SST is greater than the Field 02MED figure.

  4. Correction Procedures:

    1. Correct all misplaced entries, coding and transcription errors. Compare the screen entry to the return, and apply the procedures from the tables below:

      If And Then
      Fields 02SSW, 02SST, and 02MED are the same,   1 - Delete the Field 02SST on the ERS screen.
      2 - If EC 048 generates enter a "C" in the Clear Code Field. If Error Code 080 generates, enter the underprint amount held in Field 02TSM> to Field 02TSM.

      3– If Error Code 100 generates, send TPNC 07.
      Fields 02SSW and 02SST are the same amount Field 02MED is blank, e.g. contains no written or numerical entry, 1. Delete the entry in 02SST, and enter that amount in 02MED.

      2. If Error Code 080 generates, enter the underprint amount of Field 02TSM.> to 02TSM.
      3. If Error Code 100 generates, send TPNC07.
      The taxpayer entered a positive entry in column 2 for any line(s) 5a, 5b, and/or 5c, Left line(s) 5a, 5b, or 5c, column 1 blank, "Back-in" to the correct wage amount ( divide line amounts by .133 if 2011 or 2012 account or .153 for all other periods) to determine if the taxpayer incorrectly transcribed or transposed figures. Then, as needed, change the amount(s) in Fields 02SSW, or 02SST, or 02MED.
      The taxpayer entered a negative entry in column 1 for any line(s) 5a, 5b, and/or 5c,   1– Consider any negative entry in column 1 or 2 for any line(s) 5a, 5b, and/or 5c as a positive entry.

      2– The change of the sign in 1 may result in another Error Condition(s) to display after input:

      Note:

      After performing the above action continue to resolve the error by following the applicable procedures in the rows below.

      Field 02XMT has an entry Field 02MED is blank or zero and Field 02SSW and/or Field 02SST are the same or less than Field 02XMT Remove entry in Field 02XMT and enter in Field 02MED.
      The total of Fields 02SSW and 02SST is greater than the Field 02MED entry, The amounts in Field(s) 02SSW, 02SST, and 02MED are not the same, Review the return (including the box on line 4) and any attachments for a sufficient explanation, (such as):
      • Dependents under 18 years of age,

      • Social Security or Medicare Compensation exempt,

      • 6020(b)

        Note:

        For 6020(b) returns, ensure a CCC 4 is present in Field 01CCC.

      A sufficient explanation is given,   Divide the amount in Field 02TSM by .133 for tax periods in 2011 and 2012 and .153 for all other periods and enter the result in Field 02SSW, and in Field 02MED.
      There is no explanation shown on the return or an attachment, or the explanation is not satisfactory, There is a difference of less than ≡ ≡ ≡ ≡ between the total of Fields 02SSW and 02SST compared to 02MED,
      1. Enter the total of column 1, lines 5a and 5b to Field 02MED.

      2. Apply the following procedures:
        - If Error Code 080 displays, enter Field 02TSM> underprint.

        - If Error Code 100 displays, enter TPNC 07.

      There is no explanation shown on the return or an attachment, or the explanation is not satisfactory, There is a difference ≡ ≡ ≡ ≡ ≡ ≡ or more between the total of Fields 02SSW and 02SST compared to 02MED and line 2 entry is equal or less than line 5a and 5b Enter the total of lines 5a and 5b to Field 02MED. See the instructions above if the error ripples to EC 080 and/or EC 100
      There is no explanation shown on the return or an attachment, or the explanation is not satisfactory, There is a difference ≡ ≡ ≡ ≡ or more between the total of Fields 02SSW and 02SST compared to 02MED and line 2 entry is higher than the total of Fields 02SSW and 02SST, Correspond with the taxpayer using Letter 21C.
    2. Suspense/Rejects Procedures:

      If Then
      You receive a correct reply from the taxpayer, Enter the amounts to the applicable Fields on the screen display. Process as needed.
      You receive no reply, or there is an insufficient reply, 1– Enter the greater of Field 0202 or the total of Fields 02SSW and 02SST to 02MED.

      Exception:

      If the total of Fields 02SSW and 02SST is greater than 0202, then also enter the computed total of Fields 02SSW and 02SST to Field 0202.

      2- If Error Code 080 generates, enter the Field 025> underprint.

      3– If Error Code 100 displays, and the Total Tax-Computer is greater Total Tax-Taxpayer, send TPNC 27 and 07. However, if the Total tax Computer is less than the Total tax-Taxpayer, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

♦Error Code 028♦

  1. Fields Displayed:

    Field Display Field Name Length
    01RCD Received Date 6
    01CCC Computer Condition Code 10
  2. Invalid Condition:
    A CCC G is present and:

    1. Another CCC other than "W" or "3" is present, or

    2. CCC "W" and/or "3 is present and the received date is not present."

  3. Correction Procedures::

    1. Correct all misplaced entries, coding and transcription errors. Compare the screen entry to the return, and apply the procedures from the tables below:

      If Then
      Transcribed incorrectly, Enter the correct entry from the return.
      CCC "R" , "7" , or "D" is present, and the received date is not present, Enter the received date in Field 01RCD
      CCC "R" , "7" , or "D" is not on the return, Delete the CCC "R" , "7" , or "D" from Field 01CCC.
      The return is not a "G" coded return, (i.e., no indication that the return is "Amended" , "Revised" , "Superseding" , "Duplicate" ), and nothing indicates that this is other than the first return filed, 1- Use GTSEC 02 and enter the data in the fields for Section 02 and transmit.

      2– When Error Code 010 generates, enter the appropriate field and delete Field 01CCC.
      The return is correctly "G" coded,

      Note:

      Refer to Error Code 010.

      1- Determine the received date following instructions in IRM 3.12.13.24.4.
      Multiple dates are on the return, Use the earliest date as the received date. Circle all other received dates on the return.

♦Error Code 044♦

  1. Fields Displayed:

    Field Display Field Name Length
    CL Clear Code 1
    0202 Compensation Tips and Other Compensation 15
    02ITW Total Income Tax Withheld 15
    02SSW Taxable SS Compensation 15
    02SST Taxable SS Tips 15
    02MED Taxable Medicare Compensation and Tips 15
    02QTX Section 3121 (q) Notice and Demand 15
    02XMT Additional Taxable Medicare Compensation and Tips 15
    02EW Exempt Compensation/Tips Paid Qualified Employees 15
    02TW Tax on Exempt Compensation/Tips Paid Qualified Employees 15
    02BA Total Taxes Before Adjustments 15
    02BA> Total Taxes Before Adjustments 15
  2. Invalid Conditions:
    Compensation, Tips and Other Compensation ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Correction Procedures:

    1. Refer to the return to determine if line 2 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ This field must be shown as dollars and cents.

      Note:

      Expeditious processing of refund returns is critical if the 45 day period is about to expire.

      If Then
      Transcription errors are found Correct screen as necessary.
      The entry in Field 0202 does not agree with line 2 (Compensation, Tips and Other Compensation) on the return, Correct the screen entry and transmit.
      No correction to Field 0202 is necessary if after transmitting the correction for Field 0202, Error Code 044 is still displayed because it still exceeds $999,999.99, Enter "C" in the Clear code Field (CL) to indicate the amount is correct.

      Note:

      A correction to Field 0202 must be entered and transmitted prior to entering the "C" Clear code. The "C" Clear code does not permit any other corrections to the record.

♦ Error Code 046♦

  1. Fields Displayed:

    Field Display Field Name Length
    CL Clear Code 1
    01TXP Tax Period 6
    01CCC Computer Condition Code 10
    0202 Total Compensation, Tips and other compensation 15
    0204 Exempt from SS and Medicare Tax Indicator 1
    02SSW Taxable SS Compensation 15
    02SST Taxable SS Tips 15
    02MED Taxable Medicare Compensation and Tips 15
    02XMT Additional Taxable Compensation and Tips 15
    02EW Exempt Compensation/Tips Paid Qualified Employees 15
    02TW Tax on Exempt Compensation/Tips Paid Qualified Employees 15
    02BA Total Taxes Before Adjustments 15
    02BA> Total Taxes Before Adjustments 15
  2. Invalid Condition:
    The Error Condition will generate if Field 0202 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Field 02MED, Taxable Medicare Compensation and Tips is not present.

    Exception:

    If CCC "4" or "B" is present, it will allow this error code to bypass.

  3. Correction Procedures:

    1. Compare the displayed field entries with the appropriate line on the return. Correct any coding or transcription errors. Make sure an old form format is not causing the error.

      Note:

      If the taxpayer entered an amount on line 5d and line 5c is blank, remove the entry in Field 02XMT and enter in Field 02MED.

    2. If the fields are correct as transcribed, use the information below to correct the record.

      If And Then
      The return shows no entries or tax calculations on lines 5a through 5c (columns 1 and 2), but an entry shows on line 5e,
       

      Note:

      If an IRC 6020(b) return is incomplete on lines 5a, 5b, or 5c, use the IF/THEN procedure to process.

        Divide the amount in Field 02TSM by .153 (all tax periods except those for 2011 and 2012 or .133 if for a tax period in 2011 or 2012) and enter the result in Field 02SSW, and in Field 02MED.
      The return shows tax calculations on line 5a, thru 5d, column 2 Fields 02SSW, 02SST, 02MED and/or 02XMT are blank, Determine the Compensation amount by dividing the Social Security tax, Medicare tax or additional Medicare tax withholding by the appropriate rate, and continue to process.
      There is an entry in Field 0204 or on return line 4,   Enter CCC B in Field 01CCC.
      There is no entry in Field 0204 or on return line 4 You can determine the entry on line 2 represents non-wage items, e.g. pensions, annuities, third party sick pay, supplemental unemployment, gambling winnings, etc., or the taxpayer is indicating IRC 3121(l). Enter CCC B in Field 01CCC.
      There is no entry in Field 0204 or on return line 4 Field 0202, e.g. line 2 on the return, has an entry representing wage items or is blank, zero, none, etc. Review the return and attachments to determine if the taxpayer is claiming an "Exemption" from Social Security and/or Medicare.

      Note:

      The taxpayer may indicate an exemption using phrases like, Mis-classified Employee"United Transportation Union" , "railroad" , "common paymaster" , "minister" , "Form 4361" , "Form 4029 Exempt" , "Form 4029 applicable" , etc. Also, if the taxpayer merely indicates their profession on the signature line, it does not qualify as an explanation for claiming a Social Security and/or Medicare exemption.

      The taxpayer has indicated an exemption on the return or attachments,

      Note:

      The taxpayer may indicate an exemption by using phrases like, Mis-classified Employee"United Transportation Union" , "common paymaster" , "minister" , "Form 4361" , "Form 4029 Exempt" , "Form 4029 applicable" , "child under the age of 18 years of age" , etc. Also, if the taxpayer merely indicates their profession on the signature line, it does not qualify as an explanation for claiming a Social Security and/or Medicare exemption

        Enter CCC B in Field 01CCC.
      No entry in Field 0204 or line 4 on the return Entity area clearly indicates taxpayer is a Railroad or INOLES has a CT-1 filing requirement. Enter CL code to allow return to post as is. If unsure, initiate research using CC INOLE or ENMOD to determine if TP has filing requirements for CT-1 (MFT 09), if so enter C in CL code.
      There is no indication from the taxpayer that they are exempt from Social Security and/or Medicare on the return or attachments,   Initiate research using CC INOLE and/or BMFOL to find the taxpayer's Employment Code. (Then follow the procedures below for the applicable Employment Code or situation).
      Employment Code C,F or G is shown on the return or found during research,   Enter CCC "B" into Field 01CCC.
      Employment Code T is shown on the return or found during research,   1– Enter the amount of Field 0202 to Fields 02SSW and 02MED, column 1.

      2 When EC 048 generates enter "C" in Clear Code Field.

      3 When EC 080 generates bring up the Field 025> underprint.
      4 When Error Code 100 generates, enter TPNC 90- 91 with the statement, "You are liable for Social Security and Medicare tax under a Section 218 agreement (for state and local governmental agencies) with the Social Security Administration. "
      Employment Code W is found during research,   1– Enter Field 0202 amount into Fields 02SSW and 02MED, column 1.

      2 When EC 048 generates enter "C" in Clear Code Field.

      3 When EC 080 generates bring up the Field 02TSM> underprint.

      4 When Error Code 100 generates, send TPNC 08.
      No Employment Code is shown on the return or found during research There is no entry in column 1 or 2 1– Enter the Field 0202 amount into Fields 02SSW and 02MED, Column 1.

      2 When EC 048 generates enter "C" in Clear Code Field.

      3 When EC 080 generates bring up the Field 02TSM> underprint.
      4 When Error Code 100 generates, send TPNC 07.
      You can determine that the Compensation shown on line 2 belong to a working spouse and/or children over age 18, Fields 02SSW and 02MED, column 1 are blank, 1– Enter the amount of Field 0202 to Fields 02SSW and/or 02MED, column 1.

      2 When EC 048 generates enter "C" in Clear Code Field.

      3 When EC 080 generates bring up the Field 025>underprint.
      4– When Error Code 100 generates, send TPNC 07.
      Taxpayer files a Form 941 with entries only on line 2 or lines 5a, column 1 and 5c, column 1, The taxpayer indicates the tax withheld was from pensions, annuities, third-party sick pay, supplemental unemployment, or gambling winnings, and ERS cannot determine if it represents Compensation or non-Compensation, Correspond with the taxpayer to determine their intent.

      Note:

      Tax on annuities, pensions, third-party sick pay, etc. should be reported on Form 945.

    EMPLOYMENT CODE TABLE
    (with type of entity)

    Code Type of Entity Liable for Social Security or Medicare?
    C Church or church-controlled organization exempt from Social Security tax. Exempt from Social Security and/or Medicare unless taxpayer indicates wage amount(s)
    F Federal government agency exempt from Social Security tax. Exempt from Social Security and/or Medicare unless taxpayer indicates wage amount(s)
    G State/local government agency not under a Section 218 agreement. Generally, the employees are liable only for Medicare tax. Exempt from Social Security and/or Medicare unless taxpayer indicates wage amount(s)
    A Fiscal Agent Under Section 3504 Subject to Social Security and/or Medicare
    I Indian Tribal Government or subsidiary Subject to Social Security and/or Medicare
    N Non-profit organization subject to FICA Subject to Social Security and/or Medicare
    S Form 2032 filed by foreign subsidiary. Employees subject to Social Security and Medicare. Subject to Social Security and/or Medicare
    T State/local government agency under a Section 218 agreement. Subject to Social Security and/or Medicare
    W Section 501(c)3 nonprofit organizations exempt from the Federal Unemployment Tax Act (FUTA) under Section 3306(c)8. Subject to Social Security and/or Medicare

     

♦Error Code 048♦

  1. Fields Displayed:

    Field Display Field Name Length
    CL Clear Code 1
    02ITW Total Income Tax Withheld 15
    02SSW Taxable SS Compensation 15
    02SST Taxable SS Tips 15
    02MED Taxable Medicare Compensation and Tips 15
    02XMT Additional Taxable Medicare Compensation and Tips 15
    02EW (201006-201012) Exempt Compensation/Tips Paid Qualified Employees 15
    02TW (20106-201012) Tax on Exempt Compensation/Tips Paid Qualified Employees 15
    02BA (201006-201012) Total Taxes Before Adjustments 15
    02BA> Total Taxes Before Adjustments 15
    02FC Current Quarter's Fractions of Cents 15
    02SP Current Quarter's Sick Pay 15
    02TG Current Quarter's Adjustment for Tips and Group Life Insurance 15
    02TA (2005-201003) Total Adjustments 15
    02TA> Computer Generated Total Adjustments 15
    02TT Total Tax Taxpayer 15
    02EC (201012 and prior) Advanced Earned Income Credit 15
  2. Invalid Condition:
    Field 02TT (Total Tax -Taxpayer) is zero or blank, but at least one other displayed field has a dollar entry.

  3. Correction Procedures:

    1. Check the return for misplaced entries or the screen for transcription errors.

      If Then
      Transcribed incorrectly, Enter the correct entry from the return.
      Field 02TT, Total Tax-Taxpayer, is blank or zero, but the Fields 02ITW through 02TA show tax entries,

      Note:

      Use these procedures if the taxpayer indicates that Compensation were paid to a family member(s) or spouse as "exempt Compensation" . PL 100–203 brought spouses and children, age 18 and older, under Social Security coverage.

      Visually verify the entry on the total tax line from the prior line entries on the return. Make corrections, as needed. Then, compare the entry on the total tax line with Field 02TT. Enter corrected Field 02TT.
      After comparing the Total Tax entry on Form 941 and Field 02TT from the screen display, if the total taxes are truly zero, blank or "None" , Enter "C" in the Clear Code Field to indicate all entries are correct.

      Note: A correction to any displayed field must be entered and transmitted prior to entering the "C" in the Clear code. The "C" in the Clear code does not permit any other corrections to the record.
      After comparing the Total Tax entry and Field 02TT on the screen display, if the total taxes should be other than zero, blank, "None" and EC 100 generates Enter TPNC 03.

♦Error Code 050♦

  1. Fields Displayed:

    Field Display Field Name Length
    01TXP Tax Period 6
    0202 Compensation, Tips or Other Compensation 15
    02SSW Taxable SS Compensation 15
    02SST Taxable SS Tips 15
    02MED Taxable Medicare Compensation and Tips 15
    02EW (201006-201012) Exempt Compensation/Tips Paid Qualified Employees 15
    02TW (20106-201012) Tax on Exempt Compensation/Tips Paid Qualified Employees 15
    02BA (201006-201012) Total Taxes Before Adjustments 15
    02BA> Total Taxes Before Adjustments 15
    02FC Current Quarter's Fractions of Cents 15
    02SP Current Quarter's Sick Pay 15
    02TG Current Quarter's Adjustment for Tips and Group Life Insurance 15
    02TA (2005-201003) Total Adjustments 15
    02TA> Computer Generated Total Adjustments 15
    02TT Total Tax Taxpayer 15
    02EC (201012 and prior) Advanced Earned Income Credit 15
  2. Invalid Conditions:
    The Advance Earned Income Credit (AEIC), Field 02EC is greater than the allocated percentage of the Compensation, Tips, and Other Compensation, Field 0202. The allocated percentages are:

    1. 10 percent for tax periods 198412 and prior.

    2. 11 percent for tax periods 198503 through 198612.

    3. 14 percent for tax periods 198703 through 199012.

    4. 16.7 percent for tax periods 199103 through 199112.

    5. 17.6 percent for tax periods 199203 through 199212.

    6. 18.5 percent for tax periods 199303 through 199312.

    7. 15.78 percent for tax periods 199403 through 199412.

    8. 20.4 percent for tax periods 199503 through 201012.

  3. Correction Procedures:

    1. Compare the displayed screen entries with the return. Correct any fields to agree with the return.

      Note:

      First, review the tax period of the return. Advance Earned Income Credit (AEIC) is not allowable for any return with a tax period beginning on or after January 1, 2011. If an entry appears in Field 02EC for a return indicating a later tax period, blank the Field 02EC.

      If Then
      Field 0202 (line 2) is blank and Field 02EC (line 9) contains an entry, 1– Add Field 02SSW and 02SST together, (lines 5a, Column 1, and 5b, Column 1).

      2– Enter in Field 0202, the "larger" of the total computed in 1 above, or the amount in Field 02MED (line 5c, column 1).
      Fields 0202, 02SSW, and 02SST (lines 2, 5a, Column 1, and 5b, Column 1) are blank, but Field 02MED ( line 5c, column 1) has an entry, Enter the Field 02MED (line 5c, column 1) amount to Field 0202 (line 2) on the screen.
      Fields 0202, 02SSW, 02SST, and 02MED (return lines 2, 5a, column 1, 5b, column 1, and 5c, column 1) are blank, but line 3 of the return has an entry, Add a zero to the line 3 amount and enter the new amount to Field 0202 on the screen.
      It appears the Field 02EC (line 9) amount may be the amount of the deposits,

      Note:

      Follow the applicable steps below in the order provided until the error has been resolved.


      1– Initiate research to determine the total Federal Tax Deposits, e.g. (but not limited to) TC 650s, 670, and any TC 716 applied to the applicable tax period.
      2- If the amount in Field 02EC is:
      1. The same amount or within ≡ ≡ ≡ or less of the computed total deposit amount, e.g. add all (but not limited to) TC 650s, 670s, and any TC 716, use CC GTSEC02. Delete the entry in Field 02EC and enter the same amount to Fields 02DEP and 02STL on the screen display.

      2. Not the same amount, or ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ than the computed total deposit amount, e.g. (but not limited to) TC 650, 670s, and any TC 716, correspond for clarification of AEIC.


      3- If you receive a reply, compare the taxpayer's reply to the screen display. Correct any incorrect entries.
      4- If no reply, or an inadequate reply is received from the taxpayer, compute the correct amount of AEIC by multiplying the wage entry in Field 0202 by the allocated percentage. (The allocated percentages for each year are shown beneath the "Invalid Conditions" above.)

      Note:

      If Error Code 102 subsequently generates, enter TPNCs 23 and 27.

♦Error Code 054♦

  1. Fields Displayed:

    Field Display Field Name Length
    CL Clear Code 1
    01TXP Tax Period 6
    02TT Total Tax Taxpayer 15
    02EC Advanced Earned Income Credit 15
    02DEP FTD Credit 15
  2. Invalid Condition:
    Error Code generates when the Advance Earned Income credit (AEIC) minus the Total Tax-Computer amount is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , and the AEIC amount is greater than the Total Federal Tax Deposits by≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  3. Correction Procedures:

    1. Compare the entries on the screen display and the return. Correct any coding or transcription errors. Then, initiate research (BMFOL T) to determine the computed total of deposits, (TC 650), payments, (TC 670) and any TC 716 credit elect from a prior tax period applied to the applicable tax period. (Follow the If/Then table in priority order:)

      Note:

      First, review the tax period of the return. Advance Earned Income Credit (AEIC) is not allowable for any return with a tax period beginning on or after January 1, 2011. If an entry appears in Field 02EC for a return indicating a later tax period, blank the Field 02EC.

      If Then
      The Field 02EC amount is the same as the computed total of the deposits, e.g. (but not limited to) amount of all TC 650s, 670, and any TC 716, on the tax period. 1- Delete Field 02EC.

      2- Use GTSEC 02. Enter the same amount which was previously in Field 02EC to Field 02DEP and 02STL on the screen display. Then, continue processing.
      The return line 11 is blank, research shows no deposits, "and" Field 02EC is "less" than $2,500, Enter "C" in the Clear Code Field to resolve.
      Field 02EC amount is not the same as the applied deposits, but the entry is greater than $2,500. 1- Correspond for clarification of AEIC entry.
  4. Suspense/Rejects Procedures:

    1. Process suspense correspondence as follows:

      If Then
      You receive a reply from the taxpayer, Compare the taxpayer's reply to the screen display. Correct any incorrect entries.
      No reply is received, or an inadequate reply, Enter "C" in the Clear Code Field to resolve.

♦Error Code 056♦

  1. Fields Displayed:

    Field Display Field Name Length
    CL Clear Code 1
    01SIC Schedule Indicator Code 1
    01ARN Applied Refund Indicator 1
    0202 Compensation, Tips and Other Compensation 15
    02ITW Total Income Tax Withheld 15
    0204 Exempt SS and Medicare Compensation Indicator 1
    02SSW Taxable SS Compensation 15
    02SST Taxable SS Tips 15
    02MED Taxable Medicare Compensation and Tips 15
    02XMT Additional Taxable Medicare Compensation and Tips 15
    02EW (201006-201012) Exempt Compensation/Tips Paid Qualified Employees 15
    02TW (20106-201012) Tax on Exempt Compensation/Tips Paid Qualified Employees 15
    02BA (201006-201012) Total Taxes Before Adjustments 15
    02BA> Total Taxes Before Adjustments 15
    02FC Current Quarter's Fractions of Cents 15
    02SP Current Quarter's Sick Pay 15
    02TA (2005-201003) Total Adjustments 15
    02TA> Computer Generated Total Adjustments 15
    02TT Total Tax Taxpayer 15
    02TT> Total Tax Computer Generated 15
    02EC (201012 and prior) Advanced Earned Income Credit 15
    02DEP FTD Payments Claimed 15
    02CPM COBRA Premium Assistance Payments 15
    02STL COBRA Sub Total 15
    02B/R Balance Due/Overpayment 15
    02B/R> Balance Due/Overpayment Computer Generated 15
  2. Invalid Condition:
    The error code will generate if the FTD credit is present and Total Tax Computer is zero or negative.

  3. Correction Procedures:

    1. Compare the screen display and the return.

      If And Then
      Transcribed incorrectly,   Enter the correct entry from the return.
      The return appears to be taxable Field 02PTC has an entry Use GTSEC 02 and remove the entry.
      The return is truly non-taxable and FTD Credits are present,   Clear the error by entering "C" in the Clear code (CL) Field.

      Note:

      A correction to any displayed field must be entered and transmitted prior to entering the "C" in the Clear code. The "C" in the Clear code does not permit any other corrections to the record.

      You are unable to determine if the return is taxable or non-taxable,   Correspond with the taxpayer. Suspend with CC SSPND and Action Code 21X.
      There is no reply from the taxpayer,   Enter "C" in the Clear code.

♦Error Code 058♦

  1. Fields Displayed:

    Field Display Field Name Length
    S02NP Section 02 Not Present  
    S03NP Section 03 Not Present  
    03D> Monthly Liability Computer Generated 15
    S05NP Section 05 Not Present  
    05A> Monthly Liability Computer Generated 15
    S06NP Section 06 Not Present  
    06B> Monthly Liability Computer Generated 15
    S07NP Section 07 Not Present  
    07D> Monthly Liability Computer Generated 15
  2. Invalid Condition:
    This error condition will generate if Section 03, or Sections 05, 06, and 07 of the Record of Federal Tax Liability (ROFTL) is present but Section 02, Tax Liability Computation is not present.

  3. Correction Procedures:

    1. Refer to the return to determine if Sections 02 and 03, or Sections 05, 06, and 07 should be present.

      If Then
      There are entries on the return for Section 02 Fields, 1– Use CC GTSEC 02 to show the section format on the screen.

      2– Enter the appropriate data to the fields on the screen.
      There are no entries for Section 03, Sections 05, 06, or 07 on the return, Use CC DLSEC to delete the Sections from the screen.
      There are entries present on the return for Section 03, 05, 06 or 07, and not Section 02, Correspond with the taxpayer to secure the information concerning the tax liability for the quarter. Suspend the record with Action Code 21X.

      Reminder:

      Enter any applicable Sections prior to corresponding.

      There is no reply from taxpayer, Check IDRS to see if a TC 150 has posted for this period. If it has, send the document to have the DLN deleted and then send liability information to Accounts Management for resolution.
      There is no reply from the taxpayer, and no return has posted to the period, 1– Use CC GTSEC 02 to show the section format on the screen.

      2– Enter the amount from Field 03D> and/or 07D> to Fields 02ITW and 02TT.

      3– If Error Code 102 displays, use TP NC 27 to advise the taxpayer that we adjusted the tax because we did not receive a reply to our request for additional information.

♦Error Code 069♦

  1. Fields Displayed:

    Field Display Field Name Length
    02CPM COBRA Premium Payments 15
    02CEM Number of Recipients Receiving COBRA 6
  2. Invalid Condition:
    This error code will generate if Field 02CPM or 02CEM contains an entry, and the alternate field is blank or zero.

  3. Correction Procedures:

    1. Compare the screen display against the return and any attachments to correct any transcription errors or omissions.

      Note:

      Review the return line 11 for an entry. The taxpayer may have entered the Federal Tax Deposit total on an incorrect line. Also, determine if Code and Edit initiated correspondence for any missing COBRA line information, e.g. lines 12a or 12b. Code and Edit is required to indicate on the return that correspondence was initiated by editing the left margin AC211. (For signature only correspondence AC225 or AC226 is used.)

      Caution:

      Fields 02CPM and 02CEM are applicable to tax periods 200903 through 201312 only.

      If And Then
      Field 02CPM contains an entry (i.e., greater than zero), and Field 02CEM is blank Field 02DEP and return line 11 does not contain an entry, Enter the Field 02CPM amount to 02DEP. Blank Field 02CPM.
      Field 02CPM contains an entry (i.e., greater than zero), and Field 02CEM is blank Field 02DEP and return line 11 contains an entry Review the left margin of the Form 941 and any attachments to determine if Code and Edit previously issued correspondence for the missing information.
      There is no indication Code and Edit initiated correspondence, e.g. by leaving a margin notation or an attachment   CC SSPND with AC211. Use 21C letter ( Rev April 2010), paragraph J (or, for Form 941-PR, use the 21(SP) letter, (Rev June 2010) Paragraph J to secure the missing information.
      Field 02CEM contains an entry (i.e., greater than zero), and Field 02CPM is blank   Delete Field 02CEM.
      There is an entry in Field 02CPM or 02CEM The taxpayer is reporting information for a period after 201312 Delete entries.
  4. Suspense/Rejects Procedures:

    1. Process replies, inadequate replies and no replies as follows:

      If Then
      A reply is received or attached to the return, Enter the missing information.
      The reply is incomplete, or there is no reply,
      1. Blank the entry in the Field(s) 02CPM or 02CEM on the display screen which appear on the return, e.g. line 12a or 12b (Rev January 2009 and subsequent) The display may respond with Error Code 101.

      2. (If Error Code 101 does not display, continue to #3 below.) Error Code 101 displays (when greater than the tolerance) if the sum of the Total Federal Tax deposits (line 11) and the COBRA Premium Assistance payments (line 12a) from the return does not match the amount of the Field 02STL> underprint. To resolve, send TPNC 33.

      3. Error Code 102 will display (when greater than tolerance) as a ripple error if Field 02TT (Total Tax-Taxpayer) or Field 02STL (COBRA Subtotal-Taxpayer) was corrected. Send TPNC 01 and, if no reply or an inadequate reply was received to prior correspondence, TPNC 27.

♦Error Code 072♦

  1. Fields Displayed:

    Field Display Field Name Length
    02MRN March Number of Qualified Employees Paid Exempt Compensation/Tips 6
    02MRW March Amount of Qualified Employees Exempt Compensation/Tips Paid 15
  2. Invalid Condition:
    This error condition will generate when:

    1. Field 02MRN contains an entry greater than zero, and Field 02MRW is blank or zero

    2. Field 02MRW contains an entry greater than zero, and Field 02MRN is blank or zero

  3. Correction Procedures:

    1. Review the screen display against the return. These fields are only valid for tax period 201006.

      If Then
      Field 02MRN is greater than zero, and Field 02MRW is blank or zero. Review the Form 941, Rev 2010, lines 12c and/or 12d to determine if there was a transcription error. If so, correct the incorrect entry from the return. If Field 02MRN has a figure, but the return indicates no credit taken, delete Field 02MRN.
      Field 02MRW is greater than zero, and Field 02MRN is blank or zero If there are no transcription errors and Field 02MRN is blank, enter a "1" in Field 02MRN (only if Field 02MRW has a valid entry.

♦Error Code 080♦

  1. Fields Displayed:

    Field Display Field Name Length
    0202 Compensation, Tips and Other Compensation 15
    02SSW Taxable SS Compensation 15
    02SST Taxable SS Tips 15
    02MED Taxable SS and Medicare Compensation 15
    02XMT Additional Taxable Medicare Compensation and Tips 15
    02TSM Total SS and Medicare Taxes 15
    02TSM> Total SS and Medicare Taxes Computer Generated 15
  2. Invalid Condition:
    This error will generate if the difference between Fields 02TSM and 02TSM> ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Correction Procedures:
    For 6020(b) returns please use the procedures below:

    If Then
    The return was prepared under section 6020(b) by a Revenue Officer 1. Review the return to determine if it was signed by the Revenue Officer.

    2. If the return was unsigned, forward the return to Rejects to have the DLN cancelled. After the DLN is cancelled, route the return as instructed in IRM 3.12.13.21.

    3. If the return is signed, check the return for any transposition errors and correct the return, as needed. Do not correspond with the taxpayer.

    Note:

    The Total Tax on the return cannot change. The Total Tax amount must be assessed as submitted by the Revenue Officer.

    A CCC 4 is not present in 01CCC Enter CCC 4 in Field 01CCC.
    An IRC 6020(b) return is incomplete or blank on lines 5a, 5b, or 5c, Divide the amount in Field 02TSM by .153 or .133 (2011/2012) and enter the result in Field 02SSW and in Field 02MED.
    1. Compare the displayed field entries with the return:

      Note:

      If the Form 941 is being filed as "IRC 6020(b)" follow the procedures in the IRC 6020(b) procedures table below.

      Caution:

      Taxpayers are no longer receiving Forms 941 by mail. Many taxpayers are using old revisions of Form 941 to file taxes for quarters in 2011 and 2012. The tax rate on SS Compensation and tips for 2011/2012 was reduced by 2 percent. 2010 and prior periods rate was .124 while the rate for 2011/2012 is .104 for lines 5a and 5b. See procedures below to determine if this is the reason for the math error generating.

    2. Check for transposition, transcription or coding errors. Correct the applicable fields to agree with the return.

      Example:

      The taxpayer reports total Compensation of $108,000.00 on line 5a, column 1 and indicates the tax on that is $22,320.00 on line 5a, column 2. In this case if you backed into the wage amount to figure where the taxpayer made his error you will find that the total Compensation reported should have been $180,000.00, not $108,000.00. This is an example of a transposition error made by the taxpayer and Field 02SSW needs to be corrected.

      Caution:

      Some taxpayers are incorrectly assessing the SS tax by using the wrong rate (.104 or .124). They then are attempting to reduce their tax on lines 7a, 7b or 7c (2010 revision) or lines 7, 8, or 9 (2011/2012 revision) by the difference. When this occurs bring up the Field 02TSM underprint, GTSEC Screen 02 and remove the amount reported in Fields 02FC, 02SP or 02TG. This should clear the error. If the total amount exceeds the 2 percent difference on lines 7a, 7b or 7c, have the lead review the account.

      If Then
      The taxpayer used the incorrect rate to figure taxable SS Compensation or tips (.124 for all periods except .104 for 2011 and 2012.) Research using BMFOLI for any indication the TP has already filed a return for the tax period on the return (the return must not indicate in any way that it is amended, corrected or supplemental).
      1. If there is a return posted for the period on the return then GTSEC 01 and change the period to a current tax period. If the return that has posted is a Section 6020(b) return, please continue processing to quarter indicated on return. Do not "G" code the return. A Section 6020(b) return will have a CCC 4 and/or D on BMFOLR under Alpha Condition Codes.

      2. If there is no return posted for the tax period on the return then continue processing using the procedures below.

      The taxpayer entered an amount on line 5d and line 5c is blank, Remove the entry in Field 02XMT and enter in Field 02MED.
      The taxpayer entered an amount in lines 5a, 5b 5c and/or 5d, column 2, but left line 5e blank, or computed it incorrectly, 1) Back into the wage amount(s) to determine if the TP omitted, incorrectly transcribed or transposed figures, or check the amounts to determine if TP may have edited the wrong amount in error. Use the tax rate of .133 for 2011 and 2012 and .153 for all other periods when checking the amounts on line 5a, 5b and 5c.
      a) If any of the above situations in step 1 are present, Change Field 02SSW, 02SST and/or 02MED accordingly.
      b) If none of the above situations in step 1 are present then enter the underprint amount in Field 02TSM. When the math error on line 5d becomes less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the math error may ripple and generate EC 100.

      Note:

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


      2) When EC 100 generates review a) and b) below to find your current return condition and apply the resolution procedures.
      a) Field 02TT> is less than Field 02TT ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ then correspond with the TP to verify SS and Medicare wage/tip amounts or send TPNC 21 if the incorrect tax rate was used (.124 instead of .104 for 2011/2012) and this is the only error.
      b) Field 02TT> is less than Field 02TT≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or an increase by any amount results, enter TPNC 07 and if EC 102 generates 07. Send TPNC 21 if the incorrect tax rate (.124 vs. .104) was used and this is the only error. If EC 102 generates send TPNC 01.

      Caution:

      If TP made an additional error in the total tax field (Field 02TT) send TPNC 03 also.


      3) If you receive no reply or an insufficient reply, resolve by adding the difference between Field 02TT> and 02TT to Field 02ITW.

♦Error Code 082♦

  1. Fields Displayed:

    Field Display Field Name Length
    01CCC Computer Condition Codes 10
    02FP Number of Qualified Employees First Paid Exempt Compensation/Tips this Quarter 15
    02NP Number of Qualified Employees Paid Exempt Compensation/Tips this Quarter 15
    02EW Exempt Compensation/Tips Paid Qualified Employees During this Quarter 15
  2. Invalid Condition:

    1. This error condition will generate when: Field 02EW plus $100.00 is greater than Field 02SSW or Field 0SST.

    2. Field 02FP is greater than zero or is blank, and the total of field 02SSW and field 02SST are equal to zero or blank.

     

  3. Correction Procedures:

    1. Compare the return and any attachments against the screen. Correct any transcription errors by entering the return or attachment entry to the applicable field on the screen.

      If Then
      The entries on the screen display match the return Initiate correspondence to correct return line(s) 5a through 5c, or line 6c (Form 941, Rev April 2010). Use Letter 21C, and SSPND using Action Code 211.
      The taxpayer sends an adequate reply, Correct the information on the screen display, as per the taxpayer’s reply. GTSEC01 and enter the Correspondence received date (CRD) into Field 01CRD.
      The taxpayer sends an inadequate reply, or there is no reply from the taxpayer,
      1. GTSEC 01 and enter “3” to Field 01CCC. Edit the return with CCC “3”.

      2. Blank any entry to Field(s) 02FP, 02NP, and 02EW and transmit to update the display on the screen.

      3. When Error Code 100 displays, enter TPNC 34 to advise the taxpayer that we have disallowed their Social Security tax adjustment for the exempt Compensation paid qualified employees. The total of the reported Social Security Compensation and Social Security Tips must be equal to, or greater than, the exempt Compensation paid qualified employees, and TPNC 27, e.g. no reply or an inadequate reply to correspondence.

♦Error Code 085♦

  1. Fields Displayed:

    Field Display Field Name Length
    02SSW Taxable SS Compensation 15
    02SST Taxable SS Tips 15
    02FP Number of Qualified Employees First Paid Exempt Compensation/Tips this Quarter 15
    02NP Number of Qualified Employees Paid Exempt Compensation/Tips this Quarter 15
    02EW Exempt Compensation/Tips Paid Qualified Employees During this Quarter 15
    02TW Tax on Exempt Compensation/Tips Paid Qualified Employees During this Quarter 15
    02TW> Tax on Exempt Compensation/Tips Paid Qualified Employees During this Quarter Computer Generated 15
  2. Invalid Condition:
    This error condition will generate when:

    1. Fields 02FP and 02NP have a value other than zero or blank, and Field 02EW is zero or blank.

    2. Fields 02FP and 02NP are zero or blank and Field 02EW is not zero or blank.

  3. Correction Procedures:

    1. Compare the return against the screen. Correct any transcription errors by entering the return entry to the applicable field on the screen.

      If Then
      Form 941 line 6b (Revision 04/2010 or 10/2010) is blank, zero, none etc. and there is an entry on line 6c
      1. Review Form 941, line 6a for an entry

      2. If line 6a contains an entry, enter the same number on line 6a to Field 02NP

      3. If Field 02FP is blank, zero, none, etc. initiate correspondence to secure the missing information using Letter 21C, paragraph H and enter Action Code 211.

      Form 941 (Revision 04/2010 or 10/2010) line 6b contains an entry, and line 6c is blank, zero, none etc. Delete Field 02NP and/or 02FP
      An amount is shown in Field 02TW, but Field 02EW is blank, zero or none Back into Field 02EW by dividing the amount in Field 02TW by .062.
  4. Suspense/Rejects Procedures:

    1. If you receive a reply, input the taxpayer’s entry to Field 02NP or Field 02EW. GTSEC 01 and enter the Correspondence received date (CRD) into 01CRD.

    2. If you receive an inadequate reply, e.g. missing information is not provided, or no reply, blank any entry in Field(s) 02FP, 02NP, and/or 02EW. GTSEC 01 and enter “3” to Field 01CCC.

    3. If the correction to Field 02EW ripples to Error Code 100 see IRM 3.12.13.29.33

♦Error Code 094♦

  1. Fields Displayed:

    Field Display Field Name Length
    02SSW Taxable SS Compensation 15
    02SST Taxable SS Tips 15
    02FP Number of Qualified Employees First Paid Exempt Compensation/Tips this Quarter 15
    02NP Number of Qualified Employees Paid Exempt Compensation/Tips this Quarter 15
    02EW Exempt Compensation/Tips Paid Qualified Employees During this Quarter 15
    02TW Tax on Exempt Compensation/Tips Paid Qualified Employees During this Quarter 15
    02TW> Tax on Exempt Compensation/Tips Paid Qualified Employees During this Quarter Computer Generated 15
  2. Invalid Condition:
    This error condition will generate when the difference between Fields 02TW and 02TW> is greater than the tolerance of ≡ ≡ ≡ ≡

  3. Correction Procedures:

    1. Compare the return against the screen. Correct any transcription errors by entering the return entry to the applicable field on the screen.

      If Then
      The entry in Field 02TW is correct per the return Enter Field 02TW> underprint to Field 02TW.
      Taxpayer made a true math error Bring up the underprint Field 02TW> to Field 02TW. When EC 100 generates send TPNC 03

♦Error Code 095♦

  1. Fields Displayed:

    Field Display Field Name Length
    01TXP Tax Period 6
    01CCC Computer Condition Code 10
    02PTC Payroll Tax credit for increasing research 15
  2. Invalid Condition:
    This error condition will generate when:

    1. 01CCC "Q" is present and no money amount on line 11 or

    2. when 01CCC "Q" is not present but Line 11 contains a money amount

  3. Correction Procedures:

    1. Compare the return against the screen. Correct any transcription errors by entering the return entry to the applicable field on the screen.

      If Then
      Form 941 Line 11 is blank and CCC Q is present
      1. Delete CCC "Q"

      2. Remove F8974 and notate Route to AM.

      3. Continue processing the return

      The amount on Line 11 is a misplaced entry
      1. Initiate research (e.g. such as BMFOLT) to determine the correct field

      2. If research determines that the entry on field 02PTC belongs in another field, (e.g. 02TT or 02DEP)

      3. Delete field 02PTC amount and enter the amount into the correct field

      4. Continue processing the return

      Form 941 Line 11 has an amount but F8974 is not attached and there is no indication Code and Edit initiated correspondence
      1. Correspond with the taxpayer with Letter 21C to request F8974.

      2. Suspend with CC SSPND and Action Code 211.

      The taxpayer sent F8974 Enter CCC “Q” and continue processing the return
      There is no reply from the taxpayer,
      1. Disallowed the credit on line 11 and continue processing the return.

      2. If Error Code 100 displays, send TPNC 38 to advise the taxpayer that we have disallowed their payroll tax credit research claim because we did not receive the F8974.

♦Error Code 097♦

  1. Fields Displayed:

    Field Display Field Name Length
    02MRW March Amount of Exempt Compensation/Tips Paid Qualified Employees 15
    02MRT SS Tax Credit on March Exempt Compensation/Tips 15
    02MRT> SS Tax Credit on March Exempt Compensation/Tips Computer Generated 15
  2. Invalid Condition:
    This error condition will generate when Field 02MRT, Tax Credit on March Exempt Compensation/Tips Paid Qualified Employees- Taxpayer, is compared to Field 02MRT>, Tax Credit on March Exempt Compensation/Tips Paid Qualified Employees- Computer, and the difference is ≡ ≡ ≡ ≡ ≡ ≡ or greater

  3. Correction Procedures:

    1. Compare the return against the screen. Correct any transcription errors by entering the return entry to the applicable field on the screen.

      If Then
      The entry in Field 02MRT is correct per the return, the return shows a dollar entry on line 12d, but the taxpayer left line 12e blank Enter Field 02MRT> underprint to Field 02MRT.
      After entering 02MRT> to Field 02MRT, EC 101 displays
      1. Bring up Field 02STL> underprint and enter in Field 02STL

      2. If EC 102 generates due to the input for EC101, enter TPNC 01

♦Error Code 098♦

  1. Fields Displayed:

    Field Display Field Name Length
    01TXP Tax Period 6
    02FC Current Quarter's Fraction of Cents 15
    02SP Current Quarter's Sick Pay 15
    02TG Current Quarter's Adjustments for Tips and Group Life Insurance 15
    02TA Total Adjustments 15
    02TA> Total Adjustments Computer Generated 15
    02TT Total Tax 15
    02TT> Total Tax Computer Generated 15
  2. Invalid Condition:
    This error condition will generate if there is a difference between the Fields 02TA and 02TA>, for tax periods beginning prior to January 1, 2010.

  3. Correction Procedures:

    1. Compare the return against the screen. Correct any transcription errors by entering the return entry to the applicable field on the screen.

    2. Procedures for year 2009 tax periods reported on Form 941, Rev 2009 or subsequent.

      If And Then
      Fields 02FC through 02TG are all blank, None, etc. There is an entry in Field 02TA, (other than blank, zero, none, etc. ) 1- Blank the Field 02TA.

      2- If Error Code 100 generates, enter TPNC 16
      Fields 02FC through 02TG have one or more entries There is no entry in Field 02TA, or the taxpayer’s entry does not match the amount of the underprint for Field 02TA>. 1- Review return lines 7a through 7c to determine the reason for the Field 02TA> underprint mismatches, e.g. taxpayer transcription error, math error, Code and Edit error, etc.

      Note:

      If you determine a correction is needed, such as, making a positive entry negative, make the correction. If the return goes away, disregard steps 2 and 3.



      2- If there is one or more entries only on lines 7a, 7b, and/or 7c, enter the underprint amount in Field 02TA> for the entry (or the total of the entries). This should resolve EC 098. If Error Code 100

      3- If Error Code 100 generates, enter TPNC 16.
    3. Procedures for year 2009 tax periods reported on Form 941, Rev 2008 or prior.

      If And Then
      Fields 02FC through 02TG are all blank, None, etc. There is an entry in Field 02TA, (other than blank, zero, none, etc. ) 1- Blank the Field 02TA.

      2- If Error Code 100 generates, enter TPNC 16
      Fields 02FC through 02TG have one or more entries There is no entry in Field 02TA, or the taxpayer’s entry does not match the amount of the underprint for Field 02TA>. 1- Review return lines 7a through 7g to determine if a taxpayer entry (or entries) appears on those lines.
      NOTE: Code and Edit was instructed to ALWAYS X any entry on lines 7d, 7e, 7f, or 7g when the Form 941, Rev 2008 or prior, was filed for any 2009 tax period. Code and Edit was also instructed to edit remarks on the front page margin to indicate whether (or not) a Form 941X was (or was not) attached. The assigned wording for these remarks is shown below. However, SCRIPS transcribers process perfect Form 941 returns (Rev 2008 and subsequent) first, bypassing Code and Edit. Thus, ERS may receive 941s, Rev 2008 and prior, with an entry on line(s) 7d, 7e, 7f, and/or 7g for a 2009 tax period which are X’d (or not X’d) and/or do not display on the screen display. This is due to SCRIPS not capturing the line(s) 7d, 7e, 7f, and 7g for a 2009 tax period. Thus, ERS examiners should not rely solely on the return editing of Code and Edit or the screen display since they may not match. Rather, before taking action, consider the return editing, screen display, and error condition together.

      2- If the Form 941, Rev 2008 or prior, shows an entry on any line 7d through 7g, use the "Exception" step procedures below rather than the following procedures in #2. If there is one or more entries only on lines 7a, 7b, and/or 7c, enter the underprint amount in Field 02TA> for the entry (or the total of the entries). This should resolve EC 098. If Error Code 100 generates, see #3.

      .•EXCEPTION
      1. Review the left margin on the return for an indication by Code and Edit that a Form 941X was attached to support the entry (or entries) on line(s) 7d through 7g of the return. Code and Edit was instructed to write 941X to AM (as applicable) if a Form 941X was attached, or CP102-941X if a Form 941X was not attached.

      2. If the left margin indicates Form 941X was attached, (or a copy of a Form 941X is attached), then enter the underprint amount in Field 02TA>. The underprint amount should be the entry (or the total of the entries) in Fields 02FC, 02SP, and/or 02TG, i.e., lines 7a, 7b and/or 7c of the return, to resolve EC 098. (See the applicable row below for Error Code 100 procedures.)

      NOTE: The adjustment(s) will be manually processed in Accounts Management.

      3- If Error Code 100 generates, enter TPNC 16.
      Due to EXCEPTION processing for an entry (or entries) on line(s) 7d through 7g, and Error Code 100 generated The left margin of the return indicates a Form 941X was attached (or a copy of the Form 941X is attached), Enter TPNC 31. This will advise the taxpayer that their adjustment entry (or entries) are being processed in Accounts Management separately.
      Due to EXCEPTION processing an entry (or entries) on line(s) 7d through 7g, and Error Code 100 generated The left margin of the return indicated CP102-941X (or there was no indication on the left margin or copy of a Form 941X attached), Enter TPNC32. This will advise the taxpayer that their adjustment entry (or entries) have been denied and that they should file a Form 941X to request the entry (or entries
    4. Procedures for year 2008 or prior tax periods reported on Form 941, Rev 2008 or prior.

      If And Then
      Fields 02FC through 027SS are all blank, None, etc. There is an entry in Field 02TA, 1- Blank the Field 02TA.

      2- If Error Code 100 generates, enter TPNC 16
      Fields 02FC through 027SS have one or more entries, There is no entry in Field 02TA, or the taxpayer’s entry does not match the amount of the underprint for Field 02TA>. 1- Review return lines 7a through 7g to determine which lines have a taxpayer entry (or entries).
      • If lines 7d, 7e, 7f, and/or 7g are blank, enter the 02TA> underprint amount for the total of Fields 02FC, 02SP, and/or 02TG. This resolves Error Code 098 and generates Error Code 100. Then, enter TPNC 16.

      • If line 7d, 7e, 7f and/or 7g contain an entry, review any attachments, for a copy of the 941X, or review the left margin of the return for an indication by Code and Edit that a Form 941X was attached.

      • If a copy of the Form 941X is attached, enter the underprint Field 02TA> amount to resolve Error Code 098 (move to last bullet)

      • If a copy of a Form 941X is not attached, (and there is no indication by Code and Edit of a 941X being attached, "X" the line adjustment. Enter the re-calculated 02TA> underprint amount. When Error Code 100 generates, enter TPNC 32 to advise the taxpayer to file a Form 941X for the adjustment in the future.

      • If Error Code 100 generates, enter TPNC 31 to advise the taxpayer the adjustment will be processed separately by Accounts Management.

♦Error Code 099♦

  1. Fields Displayed:

    Field Display Field Name Length
    NC Notice Codes  
    01TXP