3.12.15 Return of Partnership Income

Manual Transmittal

November 09, 2022

Purpose

(1) This transmits revised IRM 3.12.15, Error Resolution - Return of Partnership Income.

Material Changes

(1) IRM 3.12.15.1(1) - Removed references for Form 1065-B and throughout IRM.

(2) IRM 3.12.15.2.3 (1) - Replaced paragraph with the approved and negotiated Taxpayer Advocate Service (TAS) and Chief Counsel TAS standard language for IRMs.

(3) IRM 3.12.15.2.3(6) - Added paragraph for TAS criteria.

(4) IRM 3.12.15.2.5(3) - Reworded frivolous information per Revenue Ruling (Rev. Rul.) 2004-34, Rev. Rul. 2004-12, and Internal Revenue Bulletin 619.

(5) IRM 3.12.15.2.12.2 (1) - Removed the information for the Memo Clarification of Policy for Use of Fax because it expired.

(6) IRM 3.12.15.2.12.2(5) - Updated reference for leaving messages on taxpayer answering machine. (IPU 22U0156 issued 01-25-2022)

(7) IRM 3.12.15.3.2(3) - Note - Added to verify taxpayer on return. (IPU 22U0156 issued 01-25-2022)

(8) IRM 3.12.15.3.2(4) - Added Terminus Error instructions. (IPU 22U0156 issued 01-25-2022)

(9) IRM 3.12.15.4.2 - Added new Field 01NTF to Field Designators chart.

(10) IRM 3.12.15.4.29 - Field 01Q25 renamed to Field 01ELC throughout IRM.

(11) IRM 3.12.15.4.29(1)(3) - Updated line number for Field 01ELC.

(12) IRM 3.12.15.4.31 - Field 01Q26 renamed to Field 01CRT throughout IRM.

(13) IRM 3.12.15.4.34 - Field 01Q28 renamed to Field 01TSF throughout IRM.

(14) IRM 3.12.15.4.34 (4)b - Added a chart for clarification for Field 01TSF.

(15) IRM 3.12.15.4.35 (1)(2)(3)(4) - Added new subsection with instructions for Field 01NTF and renumbered IRM accordingly.

(16) IRM 3.12.15.4.48 (4) - Added Return Processing Code (RPC) G.

(17) IRM 3.12.15.6.1(3) - Reserved for future use Fields 03TET and 03TRV and all references for TETR Tax throughout IRM. TETR Tax has been obsolete since 2007. Reserved TETR fields for future use.

(18) IRM 3.12.15.10 - Section 20 is reserved for future use.

(19) IRM 3.12.15.15.7 (3) Table - Added criteria to Error Code 007. (IPU 22U0854 issued 07-29-2022)

(20) IRM 3.12.15.15.8 (3)b - Added a Note to address 52 - 53 week filer. (IPU 22U0854 issued 07-29-2022)

(21) IRM 3.12.15.15.27 - Error Code 739 is reserved for future use.

(22) IRM 3.12.15.15.29 - Error Code 074 is reserved for future use.

(23) 3.12.15-3 - Deleted Exhibit showing Form 1065-B and renumbered Exhibits accordingly.

(24) Revised the Internal Revenue Manual (IRM), where necessary, for the following types of editorial changes:

  • Plain language, simpler words

  • Spelling, grammar, and formatting

  • IRM references, citations, and links

  • Form titles

  • IRM graphics and alternative text

  • Capitalization changes per IRS Style Guide (e.g., Revenue Officer changed to revenue officer)

  • Italics removed per IRM Style Guide

Effect on Other Documents

IRM 3.12.15, Error Resolution - Return of Partnership Income, dated November 9, 2021, (effective January 1, 2022) is superseded. This IRM incorporates IRM Procedural Updates (IPUs) : 22U0156 (issued 01-25-2022), 22U0679 (issued 06-03-2022, but not valid for PY2023), 22U0739 (issued 06-21-2022), 22U0790 (issued 07-07-2022), and 22U0854 (issued 07-29-2022).

Audience

Wage and Investment (W&I), Campus Input Correction Operation

Effective Date

(01-01-2023)

James L. Fish
Director, Submission Processing
Customer Account Services
Wage and Investment Division

Program Scope and Objectives

  1. This IRM section gives instructions for Wage and Investment Error Resolution Tax Examiners to correct errors for Form 1065, U.S. Return of Partnership Income.

  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:

    • 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. Program Goals: Ensure all necessary action is taken on the return and attachments to ensure correct posting of the return data.

Background

  1. The purpose of Error Resolution is to resolve validity errors, field errors, consistency errors, and math errors in returns and other documents for posting to the Master File. Records fall out in Error Resolution System (ERS) due to the Generalized Mainline Framework (GMF). The entries from transcription are transferred to ERS fields. The GMF programming causes a record to fall out to ERS if it fails to meet certain criteria, including:

    • Invalid characters in a field (e.g., number instead of alpha).

    • Invalid length of field (e.g., EIN with 8 digits instead of 9).

    • Invalid codes in field (valid Action Codes, Audit Codes, etc. are programmed in GMF).

    • Consistency errors - Any valid field used in any computation where the result is inconsistent with (or contradictory to) any other valid field.

    • Math errors - computer does math computation and it differs from the taxpayer’s amount.

    • Invalid Tax Periods and eligibility for certain credits.

  2. Employees use ERS to correct these conditions and when necessary use Integrated Data Retrieval System (IDRS) to research.

Authority

  1. Authority for these procedures is found in the following sections of the Internal Revenue Code and their corresponding Treasury regulations:

    • IRC 6031(a)

    • IRC 6213(b)

  2. All Policy Statements for Submission Processing are contained in IRM 1.2.1, Servicewide Policies and Authorities, Servicewide Policy Statements.

Responsibilities

  1. The Campus Director is responsible for monitoring operational performance for their campus.

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

  2. Program Effectiveness is measured using the following:

    • Embedded Quality Submission Processing (EQSP)

    • Balanced Measures

    • Managerial reviews

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 3.12.15-9

Related Resources

  1. The following table lists related sources:

    Resource Link/Title
    Submission Processing Design Center (SPDC) https://program.ds.irsnet.gov/sites/WILESPInstCrnr
    Servicewide Electronic Research Program (SERP) http://serp.enterprise.irs.gov/
    Integrated Data Retrieval System (IDRS)  
    Integrated Automation Technologies (IAT)  
    IRM 3.11.15 Returns and Documents Analysis - Return of Partnership Income
    IRM 3.24.15 ISRP System - Partnership Return of Income
    IRM 3.12.38 BMF General Instructions

♦General Information♦

  1. This IRM cannot address every possibility that occurs while correcting returns or documents. Take taxpayer intent into consideration. Refer issues not addressed in this IRM to the subject matter expert (SME), lead or manager to determine the corrective action.

♦Business Master File (BMF) Consistency♦

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

  2. Ogden, Kansas City, and Paper Processing Branch, BMF Code and Edit and Error Resolution System (ERS) identified and developed topics for BMF Consistency.

  3. A ♦ (diamond) before and after the subsection title shows BMF Consistency subsections.

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

♦IRM Deviation Procedures♦

  1. Submit IRM deviations in writing following instructions from IRM 1.11.2.2.4, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

♦Taxpayer Advocate Service (TAS)♦

  1. The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate. Its job is to protect taxpayers’ rights by striving to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights (TBOR). TAS offers free help to taxpayers, including when taxpayers face financial difficulties due to an IRS problem, when they are unable to resolve tax problems they haven’t been able to resolve on their own, or when they need assistance to address an IRS system, process, or procedure that is not functioning as it should. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.

  2. TAS uses Form 12412, Operations Assistance Request (OAR), to start the OAR process of referring a case to the Wage and Investment (W&I) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19, Taxpayer Advocate Service, Taxpayer Advocate Case Procedures, Advocating With Operations Assistance Requests (OARs).

  3. Refer taxpayers to TAS when the contact meets TAS criteria or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps cannot be taken to resolve the taxpayer's issue the same day.

  4. The definition of "Same day resolution" is within 24 hours. The following two situations meet the definition of "same day resolution" :

    • The issue can be resolved within 24 hours.

    • IRS takes steps within 24 hours to resolve the taxpayer’s issue.

  5. When making a TAS referral, use Form 911, and forward to TAS following your local procedures.

  6. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for more information.

♦TAS Service Level Agreements (SLAs)♦
  1. The National Taxpayer Advocate reached agreements with the Commissioners of the Wage and Investment (W&I) Division, Small Business and Self-Employed (SBSE) Division, Tax Exempt Government Entities (TEGE), Criminal Investigation (CI), Appeals and Large Business & International (LB&I), that outline the procedures and responsibilities for processing Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs).

  2. The SLAs are found at http://irssource.web.irs.gov/TAS/SitePages/SLA.aspx.

♦IRS Employee Contacts♦

  1. The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98), Section 3705(a), gives identification requirements for all IRS employees working tax related matters.

  2. All IRS employees who communicate by telephone, face-to-face, or any other method of correspondence with taxpayers or their personal representatives on tax-related matters must give (at a minimum) the following information:

    1. Telephone Contact - Their title (e.g., Mr., Mrs., Ms., Miss), last name and badge identification (ID Card) number. Toll-free employees may also give their location for identification purposes. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.

    2. Face-to-Face Contact - Their title (e.g., Mr., Mrs., Ms., Miss), give as appropriate during the conversation, their last name and badge identification (ID Card) number.

    3. Correspondence (sent to the taxpayer and authorized representatives) - A telephone number that taxpayers can call for answers to questions. In addition, manually generated correspondence must have the employee’s title (e.g., Mr., Mrs., Ms., Miss), last name, Integrated Data Retrieval System (IDRS) number, and letter system number, which are systemically generated by IDRS. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.

    4. Correspondex letters - Specific employee name and telephone number if the employee initiating the correspondence is in the best position to respond to any questions the taxpayer may have or if the taxpayer is being asked to give more case-related information. If the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

  3. When a taxpayer requests to speak with a specific employee who previously worked their inquiry or request, or complains about the level of service previously given, make every attempt to resolve the taxpayer’s inquiry. If unable to resolve the issue, refer the inquiry using established procedures to the manager.

  4. Secretaries, receptionists, or other people who answer the telephone in functional offices need to identify themselves and should give their badge identification (ID Card) number only if they are answering telephones which are routinely used to give tax or account information.

  5. It is not necessary to repeat the badge identification (ID Card) number on a subsequent contact, when the nature of an employee’s work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either telephone or in-person) his or her badge identification (ID Card) number on the first contact.

♦Frivolous Arguments♦

  1. Businesses use frivolous arguments for expressing dissatisfaction with the substance, form or administration of the tax laws by trying to illegally avoid or reduce tax liabilities. See IRM 25.25.10, Frivolous Return Program, and Exhibit 3.12.15-8, Potential Frivolous Arguments for Examination Review, for a list of recognized frivolous arguments made by businesses.

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

    Frivolous Return Criteria

    If Then
    The return meets any of the conditions shown as a frivolous return, (See Exhibit 3.12.15-8 , Potential Frivolous Arguments for Examination Review)

    Exception:

    If the return shows Action Code "331" and has a Form 4227, Intra-SC Reject or Routing Slip, attached with the remarks, "Refer to Exam FRP for audit after processing" , continue to next procedure.

    Remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Program (FRP) for review.
    Examination has selected the return as frivolous, shown by Action Code "331" and a Form 4227 with the remarks. "Refer to Exam FRP for audit after processing" but send the return for processing, Continue processing the return using procedures in IRM 3.12.15. However, do not circle or void the Action Code showing a frivolous return.
     

  3. Do not consider the following returns as frivolous, unless there is other evidence of a frivolous argument:

    • Returns that have only zeros, blanks, or no entries.

    • Returns showing "None" , "Not Liable" , etc.

Error Correction Process

  1. All Form 1065 Error Screen displays will appear as follows:

    • Tax Class - 2

    • Document Code 65 - Form 1065

    • Document Code 67 - Form 1065 (Publicly Traded Partnerships or "PTP" )

Inventory Reports

  1. Records will be placed into the Error Inventory or the Workable Suspense Inventory for correction. Once the Error Resolution Tax Examiner accesses the record and it is displayed on the screen, it must be:

    1. Corrected in full by correcting errors in editing or transcription and/or correcting math errors.

    2. Placed in suspense for more information.

    3. Rejected from pipeline processing.

  2. Each day the Error Inventory Report will be furnished showing:

    1. Blocks, by the block control number, and block Document Locator Number (DLN) in DLN order.

    2. Each batch will be on a separate page.

    3. Blocks received from Block Out of Balance (BOB) Correction will be listed separately.

    4. A copy of the report must be on the carts of documents and used as a charge-out to determine when a cart is completed.

    5. 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 DLN order for various status situations. Separate pages for each program, with totals, will be given.

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

Error Displays and Corrections

  1. All Form 1065 Error Screen Displays will display as follows:

    • Each field is identified by an Alpha/Numeric field Designator (AFD) displayed before the field.

    • Fields are displayed with no breaker.

    • Negative values are shown by a minus ("-" ) sign following the amount.

    • Decimal points are displayed beginning in the left position.

    • Leading zeroes in amount fields are suppressed and the significant digits are displayed beginning in the left position.

    • If more than one amount field of a record is to be shown, the unit positions are aligned beneath one another.

    • Sufficient leading blanks are displayed preceding the shorter amounts so the unit position of these amounts is directly in line with the unit position of the longest amount.

    • The cents digits are not displayed for "Dollars Only" fields. So that the unit position will remain in line with the other fields of the section, two asterisks ("**" ) are displayed in the cents position of the dollars only field.

  2. Corrections are entered starting with the left-most position of the field. Blank-out unused positions.

    • If fewer than the maximum number of positions is required, the program will automatically move to the right of the digits.

    • It is not necessary to enter the decimal point. If the decimal point is entered, it will be ignored.

    • A minus sign ("-" ) must be entered as the last numeric if the amount is negative.

  3. Be careful not to enter more than the number of positions allowed for a particular field. If more data is entered, the overflow characters will display on the screen but are dropped when the field is added to the record. This is especially important for the Taxpayer Identification Number (TIN), name and address.

  4. Corrections can be made to a displayed field by overlaying only the digits in error and not re-entering the entire field. It is not necessary to eliminate the decimal point when correcting in this manner.

  5. If it is necessary to add a missing section:

    1. Transmit with Command Code (CC) GTSEC, followed by the desired section Number.

    2. When the empty section format is displayed, enter the missing data in the proper fields and transmit with CC CRECT.

  6. If it is necessary to see a field or section of the record other than that shown in the display:

    1. Enter CC GTSEC, followed by the desired section Number.

    2. If a correction is not made to the section, drop to the bottom of the screen, and transmit.

    3. Any error display not showing all fields necessary for resolution should be reported to Headquarters.

      Reminder:

      When transmitting corrections to a screen display, move the cursor below the last field that has data before transmitting.

  7. If it is necessary to delete a section of the record, enter CC DLSEC, followed by the desired section Number.

  8. If it is determined during the course of correcting a Priority II, III or IV Error, that more information or research is necessary to resolve the error (or if the error is rejected), enter the appropriate Action Code with either CC SSPND or RJECT.

Command Codes

  1. The Command Codes (CCs) needed for correcting the Error Inventory and the Workable Suspense Inventory are briefly described below. Any CC in the Employees Security Profile will be available:

    Command Code Description
    ACTVT Used to transfer unworkable suspense records to workable suspense inventory.
    CRECT
    • Used to enter a correction.

    • Valid only after an error has been displayed in response to the GTREC command.

    DLSEC Used to delete a section within the record in progress.
    ENMOD Used to research a name control.
    ERINV Used to research a DLN or TIN on the ERS Control File.
    ERVOL
    • Used with a Status Code to display the number of ERS records in the current Workable Inventory.

    • Used to obtain the actual count of records to be worked.

    • Printed reports for ERS are updated nightly.

    FRM49 Used to input a fact of filing when an unnumbered return is withdrawn from normal processing, i.e., correspondence.
    GTREC
    • Used to access the first error record in an ERS error block.

    • Used to access a specific record in the Workable Suspense Inventory.

    GTRECQ Used to access a worked record that has been held for Quality Review.
    GTRECW
    • Used to recover an ERS data record that has already been worked.

    • Can be used at any time on the same processing day.

      Note:

      Errors discovered on subsequent days must be corrected by using Notice Review and Adjustment procedures.

    GTSEC
    • Used to obtain the display of any data section within the record in progress.

    • Response is the display of all correctable fields of the requested section, including blank fields.

    • Computer generated fields and error indicators will not be shown.

    • If no data is present in the specified section, the empty format of the requested section is displayed.

    INOLE Used to access the National Account Profile (NAP) which has selected entity information for all Master File accounts.
    MFTRA Used to request a hard copy transcript for a specific TIN.
    NAMEE
    • Used to research a missing or incomplete Employer Identification Number (EIN)/TIN.

    • Name and address data is input to search the Key Index File.

    NWDLN Used to assign a renumbered DLN on an ERS record.
    RJECT Used to delete a record from ERS.
    SINOF
    • Used to Sign Off the computer.

    • SINOF is used by all terminal users, including ERS, Generalized Unpostable Framework (GUF) and IDRS.

    • SINOF is displayed, but must be keyed onto the screen when signing off.

    • Response is "Request Completed"

    SINON
    • Used to Sign On to the computer.

    • SINON is displayed but must be keyed onto the screen when signing on.

    • Password is entered but does not appear on the screen.

    SSPND
    • Used with an ERS Action Code to place a record into Suspense status.

    • SSPND is valid for Error Correction and Suspense Correction.

    TRDBV Tax Return Data Base
    • Used to access 100 percent of return data as well as all subsequent corrections entered via ERS and GUF.

    • Used to verify specific line items (including any correction activity), resolve taxpayer inquiries, identify refund issues, and verify filing and return status.

Action Codes

  1. The ERS Action Code shows that specific information is missing or that the record is to be rejected from processing. The code will have sufficient detail to show if correspondence is to be sent to the taxpayer or specific in-house research or action(s) required.

  2. For a listing of valid ERS Action Codes, See Exhibit 3.12.15-1, Action Codes.

  3. Document Perfection Tax Examiners will assign a three digit code to a numbered return when they determine that the document is unprocessable in its present form either because more information is necessary or some manual intervention is required. This code will be entered in the bottom left margin of the return.

  4. Temporary Guidance - Due to processing delays, more suspense time is needed in Rejects for correspondence. Use the table below and replace current Action Codes (211, 212, 215, 216, 225 and 226) with Action Codes 231 and 232 whenever they are listed throughout the IRM.

    Current Action Code New Action Code
    211/212 231
    215/216 231
    225 232
    226 231

    Note:

    These changes are temporary. When processing time frames return to normal, an IPU will be issued to revert Action Codes to their previous uses.

  5. A Correspondence Action Sheet is used for initiating correspondence. This form is attached by Document Perfection. When routing within the campus (in-house research), an explanation concerning the missing information will need to be attached to the return.

  6. The Action Code assigned by Document Perfection will be transcribed into the record of the Form 1065.

  7. The presence of a valid Action Code other than 001 will place the record in the Suspense Inventory, either Workable or Unworkable.

  8. If the Action Code assigned by Document Perfection is invalid or incomplete, the record will be assigned to the Error Inventory for correction or deletion of the code.

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

  10. An ERS Tax Examiner may:

    1. Enter an Action Code on a record.

    2. Delete or correct an invalid code.

    3. Overlay the present Action Code with another to either resuspend or reject from ERS. This is done by entering a valid Action Code with CC SSPND, RJECT or NWDLN. See IRM 3.12.38, Error Resolution, BMF General Instructions, for more information.

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

    5. Enter a valid Action Code with CC RJECT to reject the record from ERS. Generally, the Service Center Control File (SCCF), will be automatically updated for the rejected records.

Correspondence

  1. DO NOT correspond with the partnership when there is an indication on the return that no transactions transpired during the tax year.

    Reminder:

    A partnership is not considered to engage in a trade or business and is therefore not required to file for any tax year in which it neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes.

  2. 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 COLLECTIONS" or reprocessable/reinput returns identified as "CIS" returns.

    See IRM 3.12.15.2.12.1, Correspondence Imaging System (CIS) Returns for correction procedures for "CIS" returns.

  3. As an ERS tax examiner issuing correspondence you may either:

    1. Use the IDRS Correspondence feature CC LETER, or

    2. Initiate correspondence by using a Correspondence Action Sheet. An IDRS operator or typist will use the form in issuing the actual correspondence.

  4. No reply to correspondence requires a Computer Condition Code (CCC) "3" in Field 01CCC. See specific IRM procedures and No Reply Procedures in Exhibit 3.12.15-10.

  5. Most correspondence is either computer generated notice, computer generated letter or preprinted letter. All correspondence now reflects a response period within 30 days and the consequence for not replying.

  6. If special notes or letters are developed, conform to the language and response periods that are used in (4) above. Use the following guidelines:

    1. All correspondence to the partnership requesting information should show that a response is required. Specify the length of time the partnership has to respond (generally 30 days) and include a statement on the action IRS will take if the response is not received timely. Be sure to include the following statement:
      "WHEN YOU REPLY, PLEASE INCLUDE YOUR TELEPHONE NUMBER AND THE MOST CONVENIENT TIME FOR US TO CALL SO WE MAY CONTACT YOU IF WE NEED MORE INFORMATION" .

    2. Provide for a purge date at least 10 days after the date given in the letter.

    3. Whenever possible, form letter should be used to correspond with the partnership. If a C-NOTE or QUICKNOTE is used, be sure that it clearly communicates the message in simple language and has the required information.

    4. When partnerships make errors that cause delays, advise the partnership that they made the error and explain what the error was that caused the delay.

    5. Specific turnaround times for working correspondence as outlined in IRM 3.30.123.5, Taxpayer Correspondence, Central Authorization File (CAF), Statutes, Taxpayer Advocate, RAIVS Photocopies, and Files, must be followed and monitoring reports must be instituted to ensure that these guidelines are met.

♦Correspondence Imaging System (CIS) Returns♦
  1. Correspondence Imaging System (CIS) is an inventory system for scanning all Accounts Management (AM) receipts into digital images and working the cases from those images.

  2. "CIS" returns are shown 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 correspondence instructions below for "CIS" returns:

    CIS Return Correspondence Criteria

    If And Then
    The "CIS" return has a Form 13596, Reprocessing Returns, attached, The return is incomplete (e.g., missing signature, schedules, or forms),
    1. Do not correspond.

    2. Remove the return from the batch and SSPND with Action Code 640 to have the DLN voided.

    3. Attach Form 4227, Intra-SC Reject or Routing Slip, (or other proper routing slip) to the return and route to AM to secure missing information.

    4. If the return comes back from AM with the information still incomplete, send the return to AM again to secure all the missing information. Indicate "More information needed to process incomplete CIS return," or similar language on Form 4227 (or other proper routing slip).

    The "CIS" return has a Form 13596, Reprocessing Returns, attached and the return is incomplete (e.g., missing signature, schedules, or forms), The return shows correspondence was sent (e.g., CCC "3" is edited on the return), Do not route the return to AM. Continue processing the return.
    The "CIS" return does not have a Form 13596, Reprocessing Returns, attached, The return is incomplete (e.g., missing signature, schedules, or forms), Research for prior posting (TC 150 posted)
    1. If TC 150 is 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.

♦Use of Fax for Taxpayer Submissions♦
  1. Taxpayers may send tax return information via fax as part of return perfection even when submitting a signature. In circumstances where contact with the taxpayer was made and documented, fax signatures are acceptable. .

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

  3. Indicate the fax paragraph on the approved Correspondence Action Sheet to inform the taxpayer of the fax options.

  4. Use the following resources to make sure you are speaking with the taxpayer or authorized representative before disclosing any tax information:

    • IRM 21.1.3.2.3, Required Taxpayer Authentication

    • IRM 21.1.3.2.4 Additional Taxpayer Authentication

  5. Before leaving any messages on a taxpayer's answering machine, review:

    • IRM 10.5.1.6.7.2, Answering Machine or Voicemail

    • IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance

♦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 gives 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. The Business Master File (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:

    1. Transactions will be viewable using Corporate Files Online (CFOL) Command codes on Saturday following the weekly Master Files processing run on Thursday.

    2. Transactions will be viewable as posted transactions using Integrated Data Retrieval System (IDRS) Command codes on Monday, following the weekly Master File processing run on Thursday.

      Note:

      Implementation of CADE 2 accelerated weekly IDRS analysis. Previously, transactions such as this would have been pending on IDRS and not shown in the CFOL command code displays.

  5. Transaction posting dates show a format of YYYYCCDD. YYYY is the year. CC is the posting cycle. Individual Master File (IMF) transactions, values for DD are:

    • 01 = Friday

    • 02 = Monday

    • 03 = Tuesday

    • 04 = Wednesday

    • 05 = Thursday

    Note:

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

    .

Perfection of Attachments

  1. Review all attachments to determine proper disposition:

    If Then
    Unrelated, unanswered partnership correspondence is attached and no action taken, Detach and route to the appropriate area using Form 4227.
    Unanswered partnership correspondence relating to the Form 1065 is attached,
    1. Make a photocopy of the attachment, and

    2. Forward to the appropriate area using Form 4227.

  2. Any attachment or photocopy of an attachment that is routed elsewhere must have name, address, EIN and Received Date.

  3. If Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts, is attached, process as follows:

    If Then
    Form 1065 has a $ amount (interest due) written by the taxpayer in the bottom margin (i.e., from Form 8697) or,
    Form 8697 has a $ amount present on part I, line 10 or part II, line 11,
    1. Input "X" in Field 01CCC

    2. Detach/print Form 8697

    3. Photocopy/print Form 1065, page 1

    4. Route Form 8697 with Form 1065, page 1, to:
      Accounts Management
      NMF Unit (CAMC)
      Mail Stop 6111G

    Form 8697, part I, line 9 or part II, line 10 shows a "Refund" ,
    1. Detach/print Form 8697

    2. Edit Tax Period and EIN on Form 8697

    3. Route to:
      Accounts Management
      NMF Unit (CAMC)
      Mail Stop 6111G

    None of the conditions above are present, No action is necessary.

Special Conditions

  1. The following instructions are given for these special condition returns:

    • Short Length Records

    • Non-ADP (Automatic Data Processing) Return

    • IRC 6020(b) Returns

    • Publicly Traded Partnerships (PTP) (Ogden Submission Processing Campus)

    • Section 965 Returns

Short Length Records
  1. The following types of return are processed as Short Length Records:

    • Common Trusts. See IRM 3.12.15.4.7(4) CCC "5" for definition.

    • Nominee returns - See IRM 3.12.15.2.14.1.1.

    • IRC 761(a) Elections - See IRM 3.12.15.2.14.1.2.

    • Inactive returns (returns with no income or deductions on page 1 and no dollar entries on pages 4 and 5 of Form 1065, Form 1125-A, Line 18a, Form 8825 (Rental Real Estate Income and Expenses of a Partnership or an S Corporation) and Line 9 on Schedule F (Profit or Loss From Farming).

      Note:

      An inactive return with an Audit Code, correspondence received date or nonrecourse loan present is processed as a long record.

  2. Only the following fields may be present on short length records:

    Fields Title
    01NC Name Control
    01EIN Employer Identification Number
    01TXP Tax Period
    01RCD Received Date
    01CCC Computer Condition Code
    01NOP Number of Partners (except Amended Returns)
    Section 05 Address (only if address has changed) on Form 1065

    Note:

    On short length records, do not correspond for missing information or attachments and do not apply missing schedule codes.

  3. Code and Edit (C&E) must edit "SR" in the top left margin above the form number for all Short Record returns except amended returns.

Nominee Return
  1. Partnerships that are formed solely for the purpose of acting as a "Nominee" or "Agent" are not required to file a partnership return. They are required to file Form 1099 showing the actual owner of the income.

  2. Although they are not required to do so, some of these partnerships may file Form 1065 solely for the purpose of telling IRS that they are not required to file.

  3. These returns will usually have only partnership entity information and a statement that the partnership is a nominee and is not required to file.

  4. Process nominee returns as "Final" , Short Record returns.

  5. CCC "F" is required.

IRC 761(a) Return/Election
  1. The term "partnership" includes a syndicate, group, pool, joint venture or other unincorporated organization through or by means of which any business, financial operation or venture is carried on, and which is not a corporation, trust or estate.

  2. Under IRC 761(a), certain arrangements treated as partnerships (investing partnerships and operating agreements) may elect to be excluded from the partnership rules. Form 1065 need only be filed for the year of the election and a statement of the election should be attached to the return. If the return shows any tax data relating to an entity level computation of income, it cannot be treated as a Section 761(a) election.

  3. Returns can be identified as potential Section 761(a) elections if the return has all of the following:

    • Name, address, and EIN but no tax data entries

    • An attachment listing the names and addresses of all the members of the organization

    • A statement to elect not to be treated as a partnership

    • CCC "8" is present

  4. Or, if the partnership has referenced one of the following on the return or attachments:

    • Section 761(a) or Treas. Reg. 1.761-2 annotated

    • Rev. Proc. 2002-68 (for tax years beginning before 01/01/2004)

    • Rev. Proc. 2003-84 (for tax years beginning after 01/01/2004)

    • Publication 541 (Partnerships) or Publication 550 (Investment Income and expenses)

    • Lottery Club

    • Exclusion filed under Subchapter K

    • The joint purchase, retention, sale or exchange of investment property

    • The joint production, extraction or use of property

  5. C & E is instructed to refer the return to Examination. Examination will determine if the election is accepted, rejected, or selected for Examination. After Examination has made their determination, process each return as directed.

    If Then
    The election is "Accepted" by Examination,
    1. Complete the processing of the return as a "Short Record" .

    2. Edit CCC "F" and CCC "8" .

    3. Edit the number of partners to "2" on the return and enter in Field 01NOP.

    Examination determines that the response is less than satisfactory, but does not request more information to be obtained from the partnership,
    1. Consider the election "Rejected" .

    2. Process as a Form 1065 long record.

    Examination determines the return is "Selected for Examination" , Document Perfection will complete the processing of the return by deleting any money amount in Sections 02, 03, 04 and 05 and editing Audit Code "1" .
    Examination determines correspondence is required, Issue Letter 1355C.

Non-ADP Return
  1. When a Form 1065 is for a Non-ADP period, reject the record from ERS, and process as Non-Master File.

    1. Use RJECT Command Code (CC) and reject the record with Action Code "620" .

    2. If CC RJECT is not in your profile, use CC SSPND and suspend the record with Action Code "620" .

  2. For NMF items with payment:

    1. Follow instructions in Error Resolution System (ERS), BMF General Instruction, IRM 3.12.38, Error Resolution System (ERS), BMF General Instructions.

    2. Use Action Code "343" and suspend to Accounting for research.

    3. Reject from ERS.

    4. Transfer to Non-Master File (NMF) or Unidentified, dependent upon instruction from Accounting.

  3. For International Returns - with and without remittance - follow instructions in IRM 3.12.38, Error Resolution System (ERS), BMF General Instructions.

IRC 6020(b) Returns
  1. When the partnership fails to file a return, IRC 6020(b) of the Internal Revenue Code is the authority for the IRS to prepare a return.

  2. CCC "4" is required.

  3. The return must be signed by a revenue officer or revenue agent.

    Note:

    Starting July 1, 2013 we will accept the revenue officer's (RO) electronic signature or typed signature as a valid signature on the return.

  4. If the return is not signed by a revenue officer or revenue agent, return the document to Collections using Form 4227.

Publicly Traded Partnerships (PTP)
  1. All coding and correction of Form 1065 with Doc. Code 67 (Publicly Traded Partnerships) is worked in Ogden Submission Processing Center (OSPC).

  2. Publicly traded partnerships (Document (Doc.) Code 67) are corrected using the same correction procedures as Form 1065.

  3. See IRM 3.12.15.15.25 for correction procedures for Error Code 737 that, if generated, applies only to these PTP returns.

Section 965 Returns
  1. Identify a Section 965 return when any of the following are present and the partnerships Tax Period is 201712 through 202012:

    • "Section 965" or "965 Tax" (or similar language) notated on the return, attachments, or statements, or

    • IRC 965 Transition Tax Statement (or similar 965 statement) attached to the return, or

    • A significant entry is present on Schedule K, lines 11 and/or line 13d, with the notation "Section 965" (or similar language).

    • Code "G" in Box 11 on Schedule K-1, or Code "X" in Box 13 on Schedule K-1.

    Note:

    A significant entry is defined as any amount other than zero.

  2. Section 965 returns are held in management suspense with Action Code "460"

  3. If a Section 965 return has been identified by ERS and C&E has not edited Action Code "460" and/or CCC "J" , SSPND with Action Code "460" and enter CCC "J" in Field 01CCC.

  4. Follow the instructions below to finish processing the return:

    Note:

    Ensure the return has been correctly identified as a Section 965 return.

    965 Processing

    If Then
    The return is identified as a Section 965 return in error,
    1. Remove "J" from Field 01CCC, if present

    2. Ensure any correspondence issues are addressed.

      Note:

      Code and Edit (C&E) has been instructed not to correspond on Section 965 returns. C&E will notate "K-1 missing" or similar in the lower left margin (action trail) of the return, if correspondence is needed for missing Schedules K-1.

    3. Continue normal return processing.

    The return is confirmed as a Section 965 return, and correspondence is needed,
    1. Verify "J" is present in Field 01CCC

    2. Resolve any field errors and/or error codes,

    3. Suspend the return and initiate correspondence.

      Note:

      Code and Edit (C&E) has been instructed not to correspond on Section 965 returns. C&E will notate "K-1 missing" (or similar language) in the lower left margin (action trail) of the return, if correspondence is needed for missing Schedules K-1.

    The return is confirmed as a Section 965 return, and correspondence is not needed
    1. Verify "J" is present in Field 01CCC.

    2. Resolve any field errors and/or error codes.

     

♦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. If CI has stamped the return, do not send for further CI action.

  3. For returns with refund claims of ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more, do the following:

    Caution:

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

    Refund Claim Ogden and Kansas City
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. Make a copy of the first two pages of the tax return along with any page of the return that appears suspicious.

    2. Attach Form 4227, Intra-SC Reject or Routing Slip, to the copy.

    3. Route the copy to Ogden, Mail Stop 9001, Criminal Investigation (CI).

    4. 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.

    5. Continue processing the return.

  4. Because of the repetitive nature of the ERS/Rejects function, ERS/Rejects Tax Examining Technicians often recognize income tax return data which is outside of the norm for data found on similar returns for each income tax return type. If ERS finds return characteristics not meeting Audit Code or Exam referral criteria it deems suspicious, CI is available to review the referral.

  5. If a suspicious return is found, and there is no sign Code and Edit (C&E) made a copy and sent to CI Referral, then, do the following:

    1. Make a copy of the first two pages of the tax return along with any page of the return that appears suspicious.

    2. Attach Form 4227, Intra-SC Reject or Routing Slip, to the copy.

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

      Ogden Kansas City
      Mail Stop 9001, Criminal Investigation (CI) Mail Stop S2 9000, Criminal Investigation (CI)

    4. 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.

    5. Continue processing the return.

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

♦Examination (Exam) "Funny Box" Criteria♦

  1. The primary goal in identifying tax returns for examination is to promote the highest degree of voluntary compliance. Examination gives support and helps Submission Processing (SP) with any questionable return found during processing. Exam has a vast multitude of programs and tolerance criteria already found in several IRM sections. SP can refer any questionable return to Exam, unless prohibited by instructions currently found in several IRMs.

♦Business Master File (BMF) Identification (ID) Theft♦

  1. BMF Identification (ID) Theft is increasing. If a case is found with attachments or correspondence showing the taxpayer is a victim of "ID Theft" :

    1. SSPND with Action Code 360 to route the return to Planning & Analysis (P&A).

    2. Attach Form 4227, Intra-SC Reject or Routing Slip (or other proper routing slip) with the notation "ID THEFT" .

    3. Give the entire case to the manager/lead.

  2. The manager/lead will expedite the case to the P&A staff for referral to one of the SP BMF ID Theft liaisons. The taxpayer must show that they are a victim of "ID Theft" ; do not send cases that are subject to Criminal Investigation (CI), Examination (Exam) or Fraud review.

♦Working Trail♦

  1. It is important to leave a legible "Working Trail" , (or "Action Trail" ) using blue ink for those who may work the return later.

  2. Write all Taxpayer Notice Codes (TPNCs) 90 on the front of the return in the upper left corner, (or use Form 12648, Error Correction 90 TPNC).

  3. If corresponding with a non-suspense letter, "X" and write the corrected money amounts to the left of each original point(s) of error. Write money amounts in dollars only or dollars and cents, as applicable. Arrowing is allowed for money amounts when there are no intervening entries between the arrow and the line to which the money is to be entered.

  4. Leave a working trail on the return when changes are made to the following items:

    • Employer Identification Number (EIN)

    • Tax Period

    • Computer Condition Code (CCC)

    • Received Date

    • Correspondence Received Date (CRD)

      Reminder:

      Circle out incorrect Tax Periods, Received Dates, and Employer Identification Numbers (EINs).

  5. When working Reject re-inputs, circle out any previous Action Codes shown on the front of the return if no longer applicable.

  6. When working Rejects, line through the DLN in red and write "Voided" with the date above the DLN, when voiding a return.

Types of Errors

  1. This section gives a description of the types of errors generated during Form 1065 processing.

  2. The Error Resolution System (ERS) will identify errors according to type and priority. This will show in the record heading:

    • Action Code Error (Priority I)

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

    • Validity Error (Priority III)

    • Math/Consistency Error (Error Codes) (Priority IV)

  3. There may be records where the tax examiner finds that programming has not supplied a section or a field that is needed to solve an error. In this event, the tax examiner can use Command Code (CC) GTSEC. (See IRM 3.12.15.2.10). This should be reported to Headquarters for correction of the display.

Priority I Errors - Action Code/Unpostable Code Errors

  1. Description:

    • All records with an invalid Action Code assigned by Document Perfection will be placed in the Error Inventory and will be displayed as a Priority I Error.

    • All records with a valid Action Code will be assigned to a Suspense Inventory and will be displayed as a Priority I Error.

  2. Display - The Action Code for the record with the literal description of the action or unpostable condition will be shown.

  3. Correction Procedures - Process Priority I errors as follows:

    If Then
    Suspense action is required, Enter CC SSPND with the correct Action Code.
    Suspense action is not required, Enter "000" in the Clear Field (CL) Field.

    Note:

    Except for priority statute and manual refund cases, do not remove the document from the block.

  4. See IRM 3.12.38, BMF General Instructions, procedures for correcting Priority I Action Code errors in Suspense and Unpostable Code Correction.

Priority II Errors - Section Errors

  1. Most edit, missing section, and terminus errors should be eliminated by the ISRP system. However, edit errors and/or terminus errors may be present if normal ISRP validity checks have been bypassed.

  2. Edit Error - A section with an error detected by ISRP. Edit errors will be coded as follows:

    • Code 1 - Split screen transmission, key verifier attempted to change Check Digit, key verifier changed 4 or more digits of TIN, or the original entry operator shows that a required section is missing.

    • Code 2 - CATCH-ALL ISRP ERROR: Any error attributed to ISRP that is not described below, such as invalid characters in a field, or a combination of errors listed below.

    • Code 3 - Invalid section ending point.

    • Code 4 - Invalid field length.

    • Code 5 - Questionable section - the ISRP operator input the same section more than once. The computer program will drop all duplicate sections and display on the error screen the first one encountered.

      Note:

      When displayed, this type of error will display all input fields, except for the Remittance in Section 01 of the section in error. Transcribed data will be present. Computer generated data will not be present.

  3. Correction Procedures:

    • Check all fields of the section when this condition exists verifying that fields are entered as coded.

      Note:

      Ensure the return is for the taxpayer whose name is in Section 01.

    • If no correction is needed, or once the section is correct, transmit from the bottom of the screen.

    • If the section needs to be deleted, enter CC DLSEC with the section number.

  4. Terminus Error - This error is caused by a section with variable length input fields that have an erroneous size field.

    1. Examine all fields of the section

    2. Make the necessary corrections to the record

    3. Once the section is correct, or if no corrections are necessary, transmit from the bottom of the screen

  5. Correction Procedures:

    • CC CRECT will be displayed. If the section needs to be deleted, use CC DLSEC to delete the section.

    • If no corrections are needed, transmit from the bottom of the screen.

Priority III - Field Errors

  1. Definition - Any field that does not meet the requirement(s) for that field will be shown as a Priority III error. Consistency and or relationships with other fields will not be a factor.

  2. Some reasons for this type of error are:

    • Non-numeric character in a number field.

    • Non-alphabetical character in an alpha field.

    • Blank space in a number field.

    • Blank in the first position of an alpha field if followed by significant data.

  3. Display - Every field displayed is in error.

    • All fields with a Priority III error will be displayed in columnar format in the order encountered in the record.

    • An overflow field is identified by all question marks for a money field or a single pound sign in the last position of a Name Line.

  4. Correction Procedures:

    1. Correct every error field displayed using the specific instructions within each section for the field in error.

    2. Check the information on the source document to determine if each displayed field has been correctly coded and transcribed.

    3. Enter the correct data for each field displayed.

    4. If no data is to be in a displayed field, blank the field.

    5. Transmit.

Priority IV Errors - Consistency/Math Errors

  1. Definition - Any valid field used in any computation in which the result is inconsistent with (or contrary to) any other valid field will have Error Code 001-999 assigned and will be shown as a Priority IV Error.

  2. Display - These errors will be displayed with the 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.

    1. 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.

    2. All errors must be resolved by either eliminating the error or entering a Clear Code.

  3. Correction Procedures:

    • Correct all coding and transcription errors.

    • If the data in the field is correct, enter a "C" in the Clear Code field.

Section 01 Errors

  1. This section gives instructions for correcting Section 01 error conditions.

General Information

  1. Section 01 has entity data and codes for returns and is required for every record.

Remittance (RMIT)
  1. This entry represents prepayment of a penalty.

  2. It must be blank or numbers.

  3. If an amount is present, it must be dollars and cents.

  4. The Remittance field cannot be changed by ERS.

Error Record Format

  1. Listed below are the fields that are in Section 01 of Form 1065. See Exhibit 3.12.15-2, Form 1065, U.S. Return of Partnership Income.

  2. The Field Designator, Field Length (maximum length for variable fields), Title, and Location where the data is obtained on the return is shown below:

    Field Designator Field Length Title Location on Form 1065
    01NC 4 Name Control/Check Digit First Name line Form 1065, page 1
    01EIN 9 Employer Identification Number Form 1065, page 1, Box "D"
    01TXP 6 Tax Period Form 1065, page 1, between form Title and OMB Number
    01RCD 8 Received Date Form 1065, page 1, Deduction Area
    01CCC 10 Computer Condition Code Form 1065, page 1, dotted portion of Line 1a
    01TXB 8 Tax Period Beginning Form 1065, page 1, Left of field 01TXP
    01NAI 6 North American Industry Classification Code System (NAICS) Form 1065, page 1, Box "C"
    01DOB 6 Date Business Started Form 1065, page 1, Box "E"
    01NOP 6 Number of Partners Form 1065, page 1, Line I
    01IRC 1 Initial Return Code Form 1065, page 1, to the left of Box "G"
    01TT 1 Technical Termination Form 1065, page 1, Box "G(6)"
    01AMC 1 Accounting Method Code Form 1065, page 1, Box "H"
    01M3 1 Schedule M-3 Form 1065, page 1, Box "J"
    01LPC 1 Limited Partnership Code Form 1065, page 2, Schedule B, Line 1
    01DPC 1 Dual Partner Code Form 1065(prior year revisions only), page 2, Schedule B, Line 2
    01FDC 1 Foreign/Domestic Corporation Code Form 1065, page 2, Schedule B, Line 2a
    01INE 1 Individual/Estate Ownership Code Form 1065, page 2, Schedule B, Line 2b
    01PCS 1 Ownership of Foreign or Domestic Corporation Code Form 1065, page 2, Schedule B, Line 3a
    01DPT 1 Ownership of Foreign Partnership or Trust Code Form 1065, page 2, Schedule B, Line 3b
    01PTT 1 Partnership Level Tax Treatment Election Code Form 1065(prior year revisions only), page 2, Schedule B, Line 5
    01DPA 1 Distribution of Property Code Form 1065, page 3, Schedule B, Line 10a
    01DRE 6 Number of Form 8858 attached Form 1065, page 3, Schedule B, Line 13
    01FPI 6 Number of Form 8805 attached Form 1065, page 3, Schedule B, Line 14
    01FPC 1 Foreign Partner Code Form 1065, page 3, Schedule B, Line 14
    01IR1 6 Number of Form 8865 attached Form 1065, page 3, Schedule B, Line 15
    01NFC 3 Number of Form 5471 attached Form 1065, page 3, Schedule B, Line 17
    01ELC 1 Partnership Audit Election Code Form 1065, Schedule B, Question 30

    Note:

    For prior year 2021, Partnership Audit Election Code found on Schedule B, Line 29. For prior year revisions 202012 and before, Partnership Audit Election Code - found on Schedule B, Question 25.

    01SK1 3 Total Number of Schedules K-1, from Schedule B-2, part III, line 3 Form 1065, Schedule B, Question 30

    Note:

    For prior year 2021, Schedule B, Question 29. For prior year revisions 202012 and before, Schedule B, Question 25.

    01CRT 1 Qualified Opportunity Fund Code Form 1065, Schedule B, Question 25

    Note:

    For prior year revisions 202012 and before, Schedule B, Question 26.

    01QOF 15 Qualified Opportunity Fund Amount Form 1065, Schedule B, Question 25

    Note:

    For prior year revisions 202012 and before, Schedule B, Question 26.

    01NFP 5 Number of foreign partners that disposed of an interest or received distributions Form 1065, Schedule B, Line 26

    Note:

    For prior year revisions 202012 and before, Schedule B, Question 27.

    01TSF 1 Were there any transfers between the partnership and its partners Form 1065, Schedule B, Line 27

    Note:

    For prior year revisions 202012 and before, Schedule B, Question 28.

    01NTF 10 Number of Schedules K-1 or Schedules K-3 not furnished to partners timely Form 1065, Schedule B, Line 29
    01ADC 9 Audit Code Form 1065, page 1, left margin next to Line 9
    01SIC 1 Special Income Code Form 1065, page 1, left margin next to Line 9
    01CRD 8 Correspondence Received Date N/A, no longer edited by C & E
    01ISI 1 Installment Sales Indicator Form 1065, page 1, left margin next to Line 9
    01NRL 1 Nonrecourse Loan Code Form 1065, page 1, left margin next to Line 9
    01MSC 2 Missing Schedule Code Form 1065, page 1, left margin next to Line 9
    01HSC 1 Historic Structure Code Form 1065, page 1, left margin next to Line 9
    01SWC 1 Salary and Wage Code Form 1065, page 1, right margin next to Line 9
    01EP 1 EPMF (Employee Plans Master File) Code Form 1065, page 1, right margin next to Line 18
    01PSN 9 PTIN (Preparer Tax Identification Number)

    Note:

    For Tax Year 2009 and before, field may show Preparer SSN (Social Security Number)

    Form 1065, page 1, Preparer PTIN area
    01PEN 9 FIRM's Employer Identification Number Form 1065, page 1, Preparer EIN area
    01CBI 1 Paid Preparer Checkbox Indicator Form 1065, bottom page 1 to the right of signature date
    01PTN 10 Paid Preparer Phone Number Form 1065, bottom page 1 below preparer EIN
    01RP1 20 Return Processing Code (RPC) Form 1065, right margin next to Line 1c.
    01RP2 15 Overflow for RPCs If more than 20 RPCs are needed, enter more RPCs in Field 01RP2.

Field 01NC - Name Control/Check Digit

  1. Description - Field 01NC is found in the entity section of Form 1065.

  2. Valid Condition - Field 01NC has four positions and the valid characters are alpha, numeric, hyphen, ampersand and blank.

    • If a check digit is present, the computer makes an additional mathematical test of the EIN.

    • A check digit must have blanks in the first 2 positions and a letter other than "E" , "G" or "M" in the last 2 positions.

  3. Invalid Condition - Field 01NC is invalid if any of the following conditions are present:

    • The first position is blank.

    • The second, third or fourth position is not an alpha, number, hyphen, ampersand or blank.

    • There are any intervening blanks between significant characters.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Correct using the Check Digit, if present. Delete the entry in Field 01NC and enter the correct Check Digit.

    3. If the correct Check Digit cannot be determined, enter the Name Control.

    4. If the Name Control cannot be determined, research following instructions in Document 7071-A, Name Control Job Aid - For Use Outside of the Entity Area.

Field 01EIN - Employer Identification Number

  1. Description - Field 01EIN is found in the entity section of Form 1065, Box "D" .

  2. Valid Condition - Field 01EIN must have nine numbers.

  3. Invalid Condition - Field 01EIN is invalid if any of the following conditions are present:

    • The EIN is not numbers.

    • The EIN is less than nine characters.

    • The first two digits of the EIN are: 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, or 89.

    • The EIN is all zeroes or nines.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

      If Then
      The EIN was transcribed correctly, Research for another EIN on the return or attachments and enter in Field 01EIN.
      The EIN cannot be determined,
      1. Research IDRS for the correct EIN using CC NAMEE/NAMEB.

      2. If found, enter the correct EIN. (See Figure 3.12.15-1)

      No EIN can be found,
      1. SSPND record with Action Code "320" .

      2. Route to Entity Control using Form 4227.

      3. Notate Form 4227"ASSIGN EIN" . (See Figure 3.12.15-1)

      Caution:

      Always ensure that the Name Control matches the Master File record whenever you change an EIN.

    2. If the EIN is changed from the one the taxpayer used, issue Letter 3875C as a non-suspense letter to the address on the return. Continue processing the return.

      Note:

      Do not send Letter 3875C when: three or less digits of the EIN are transposed, different, or missing; or INOLES shows 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.

Field 01EIN - Suspense Correction
  1. Determine if Entity Control has found the correct EIN.

    If Then
    Entity found the correct EIN, Enter in Field 01EIN
    Entity assigned an EIN,
    1. Enter in Field 01EIN.

    2. GTSEC 01 and enter the Entity Assignment Date (from the lower left corner of the return) in Field 01CRD if it is after the Return Due Date.

    Figure 3.12.15-1

    This is an Image: 33655001.gif

    Please click here for the text description of the image.

Field 01TXP - Tax Period

  1. Description - Field 01TXP is found on page 1, between Form Title and OMB Number of Form 1065. Tax Period ending is printed in year (YYYY), month (MM) format e.g., Dec. 31, 2022 is printed 202212.

  2. Valid Condition - The Tax Period must be present and have six numbers.

  3. Invalid Condition - Field 01TXP is invalid if any of the following conditions are present:

    • The Tax Period is not all numbers.

    • The last two digits (month) are not 01-12.

    • The Tax Year (first four digits) is after the current year.

    • The Tax Year is equal to the current year (i.e., 2022), but the month is after the current processing month.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Determine the correct Tax Period from Form 1065 and attachments.

    If Then
    The Tax Period cannot be found, Enter the current year.
    A non-final return and the Tax Period ending is equal to or later than the current year-month by not more than four months,
    1. SSPND with Action Code "480" .

    2. Attach Form 4227 and notate "EARLY FILED" .

    A non-final return and the Tax Period ending is later than the current year-month by four months or more,
    1. SSPND with Action Code "211" .

    2. Attach Form 3696 or other approved Correspondence Action Sheet and request confirmation of the Tax Period ending.

      Note:

      When confirmed, the return will be processed after the end of that Tax Period.

    A "Final" return and the Tax Period ending is the same as or later than the Received Date, Change the Tax Period to the month preceding the Received Date.

Field 01RCD - Received Date

  1. Description - Field 01RCD is a number field that is either the date stamped by Receipt and Control or edited by C & E.

    • The legal due date is the 15th day of the third month after the Tax Period ending.

    • Partnerships whose partners are all Nonresident Aliens must file their return by the 15th day of the sixth month following the close of the year.

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

    • When the due date falls on a weekend or legal holiday, the return is timely if postmarked by the first business day following the due date.

  2. Consider the return timely if:

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

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the postmark is on or before the legal due date.

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

  3. Valid Condition - Field 01RCD must be present and entered in "YYYYMMDD" format.

  4. Invalid Condition - Field 01RCD is invalid if any of the following conditions are present:

    • The Received Date is not present.

    • The Received Date is not in "YYYYMMDD" format.

    • The Received Date is later than the current processing date.

    • The Received Date is not all numbers.

    • The Received Date is not within the valid month, day range detailed below:

      Month Day
      01, 03, 05, 07, 08, 10 and 12 01-31
      04, 06, 09 and 11 01-30
      02 01-28 (29 leap year)

  5. Correction Procedures:

    1. Correct coding and transcription errors.

      If Then
      The Received Date is invalid and it appears that the incorrect year was used (i.e., 20220115 instead of 20230115), and other information (Julian date, postmark date, and/or signature date) shows that the Received Date should be a current year, Change the Received Date year to the current year.
      Multiple Received Dates are present,
      1. Use the earliest IRS stamped Received Date.

      2. Circle out all other dates.

      The return was addressed to the IRS and delivered to a State agency, Use the postmark date as the Received Date
      The return was addressed to a State agency, Use the IRS date stamp as the Received Date. (See Figure 3.12.15-2)
      The Received Date cannot be determined, Determine the entry to Field 01RCD using the following priority order:
      1. Earliest legible postmark (e.g., U.S. Post Office, foreign postmark, or Private Delivery Service).

        Note:

        For certified mail only - If a postmark is not present, look for a "USPS.com Track & Confirm" record that has been attached to the return (should be before the envelope. Use the Acceptance date on the record to determine timeliness, follow normal editing procedures. If the "USPS.com Track & Confirm" record is not attached, no action is required.

        Note:

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

      2. Service Center Automated Mail Processing System (SCAMPS) digital date.

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

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

      5. DLN Julian date minus 10 days.

      6. Current date minus 10 days.

      Figure 3.12.15-2

      This is an Image: 33655002.gif

      Please click here for the text description of the image.

    2. A private delivery service (PDS) is a business that delivers packages. The "Timely Mailing as Timely Filing" rule now applies to some PDS. When the rule applies to a PDS, it is referred to as a "Designated" PDS. See IRM 3.10.72, Receiving, Extracting and Sorting for a list of designated private delivery services.

      Note:

      Private delivery services do not deliver to P.O. Boxes. Partnerships must use the U.S. Postal Service to mail items to an IRS P.O. Box address.

Field 01CCC - Computer Condition Code

  1. Description - Field 01CCC is an alpha or number field edited on the dotted portion of Line 1a, Form 1065.

  2. Valid Condition - Valid characters are "A" , "B" , "D" , "F" , "G" , "I" , "J" , "L" , "M" , "O" , "Q" , "R" , "S" , "T" , "W" , "X" , "Y" , "1" , "2" , "3" , "4" , "5" , "6" , "7" , "8" and "9" .

  3. Correction Procedures - Correct Field 01CCC using the following procedures:

    If Then
    Field 01CCC was transcribed incorrectly, Enter the correct Computer Condition Code from the dotted portion of Line 1a on page 1.
    The Computer Condition Code was edited incorrectly,
    1. Examine the document to determine the correct CCC.

    2. Enter the correct code in Field 01CCC and on the return. (See Figure 3.12.15-3)

    The Computer Condition Code(s) edited on Form 1065 is illegible or invalid,
    1. Examine the document to determine the correct CCC.

    2. Enter the correct code in Field 01CCC and on the return.

    No reply to correspondence or the correspondence was undeliverable, Enter "3" in Field 01CCC and on the return.
    CCC "G" is deleted from Field 01CCC,
    1. GTSEC to review all sections.

    2. Enter data where necessary.

    CCC "5" is present with a Computer Condition Code other than A, B, F, R, W, 4, 6 and/or 9, Delete the invalid Computer Condition Code(s).
    CCC "6" is present with a Computer Condition Code other than A, B, F, R, W, 4, 5, 8 and/or 9, Delete the invalid Computer Condition Code(s).

    Note:

    CCC "6" is not necessary if Computer Condition Codes F, 4, 5, or 8 are present. These Computer Condition Codes will also suppress the "Failure to File on Correct Media Penalty."

    CCC "8" is present with a Computer Condition Code other than A, B, F, R, W, 4, 6 and/or 9, Delete the invalid Computer Condition Code(s).

  4. Computer Condition Codes (CCCs) are assigned by tax examiners or are computer generated. Presence of one of the following Computer Condition Codes initiates action as explained below. Listed below are the valid Computer Condition Codes for Form 1065.

    CCC Description
    A Date Business Started is blank.
    B Schedule M-3 is attached or Line J is checked "Yes" .
    D Partnership gave Reasonable Cause for Failure to Pay Penalty

    Note:

    C & E has been instructed not to edit this Computer Condition Code unless instructed by Compliance on a Secured or Prepared return, or from Form 13133, Expedite Processing Cycle.

    F
    • Final return (Line J on Form 1065 is checked)

    • Nominee return

    • Accepted Section 761(a) election

    • Deceased

    • Dissolved

    • Liquidation

    • Out-of-Business

    • IRC 501(c)(3)

    • IRC 708(b)(1)(B)

    • Filed in accordance with Rev. Proc. 2003-84

    G Amended, corrected or superseding return.

    Note:

    CCC "G" is invalid if any other CCC is present except"S" "T" "W" and/or "3" and must have a Received Date.

    I Tax Period is 198106 or later andForm 6781, Gains and Losses from Section 1256 Contracts and Straddles, is attached.
    J Input J in Field 01CCC when any of the following are present:
    • "Section 965" or "965 Tax" (or similar language) notated on the return, attachments, or statements, or

    • IRC 965 Transition Tax Statement (or similar statement) attached to the return, or

    • A significant entry is present on Schedule K, lines 11 and/or 13d, with the notation "Section 965" (or similar language).

      Note:

      A significant entry is defined as any amount other than zero.

    • See IRM 3.12.15.2.14.5, Section 965 Returns.

    L Taxpayer writes "Section 6114 Election" on the return or Form 8833, Treaty-Based Return Position Disclosure Under IRC 6114 or IRC 7701(b) , is attached.
    M Form 8949 (Sales and Other Dispositions of Capital Assets), Opportunity Zone
    1. CCC "M" is valid for Tax Periods 201712 and later. A Field Error will display if Tax Period is before 201712 and CCC "M" is present. Verify the Tax Period and make corrections as needed.

    2. Enter "M" in Field 01CCC when

      • Tax Period is 201712 and later, and

      • Form 8949, Sales and Other Dispositions of Capital Assets, contains a code "Z" and/or code "Y" in column (f).

    Note:

    Tax Cuts and Jobs Act of 2017, P.L. 115-97 (H.R. 1), Section 13823, Opportunity Zones. Taxpayers who elect to defer gain on the sale of an asset by investing in an Opportunity Zone Fund will show they are deferring the gain by entering code "Z" and/or code "Y" in column (f).

    O Manual Refund/Settlement Freeze
    Q - Reserved for future use. Form 8913, Credit for Filing Telephone Excise Tax Paid - This field is no longer used, but is still in ERS programming.

    Note:

    This credit was used for tax periods 200612 to 200711.

    R
    • There is an indication such as "DO NOT ASSESS FAILURE TO FILE PENALTY" on a secured return annotated with "599"

    • "IRC 6032" or "Common Trust" is notated by the partnership

    • Partnership's electronic return was rejected and the postmark on the mailed is within 10 calendar days of rejection notification

    • The return is not received by the original return due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡and there is no indication of any income, deductions, credits or partnership states it's inactive

    • Form 13133, Expedite Processing Cycle, is attached and Examination shows application of the Condition Code

      Note:

      If Rev. Proc. 84-35 (10 or fewer partners) is notated on the return or on an attachment to the return, treat as a reason given by the partnership for delay in filing the return, Letter 1382C should be issued.

    Reminder:

    All returns with an "R" Code must have an IRS Received Date. If not present, enter the IRS Received Date.

    S Form 8883, Asset Allocation Statement Under Section 338, is attached.
    T Form 8886, Reportable Transaction Disclosure Statement, is attached. Form 8886 is valid for Tax Periods 201301 and later.

    Note:

    Form 8886 replaces Form 8271, Investor Reporting of Tax Shelter Registration Number. Form 8271 was valid for Tax Periods 200711 and before.

    W Record cleared by Statute Control Unit.
    X
    • Prevents the refund of prepaid credits or credit offset on publicly traded partnerships.

    • Prevents the refund if Form 8697 or Form 8866 is attached and a dollar amount (interest due) is written by the Taxpayer in the bottom margin of Form 1065.

    • Prevents the refund of repayment of the Qualified Therapeutic Credit (QTDP). If Form 4255 is attached, See IRM 3.12.15.1.

    Y Return was filed for a Short Period due to a change in accounting period.
    1 Form 8824, Like-Kind Exchanges, is attached.
    2 Form 8938, Statement of Specified Foreign Financial Assets, is attached.
    3 Correspondence Received Date - reply is missing, incomplete or notice was undeliverable.
    4 IRC 6020(b)
    5 Common Trusts, IRC 6032
    • Box A, Principal Business Activity is notated with COMMON TRUST FUND, COMMON TRUST or NAICS Code 525920

    • IRC 6032 Common Trust Fund or similar notations marked within margins of Form 1065.

    Note:

    CCC "5" is valid with CCC "A" , "B" , "F" , "R" , "W" , "4" , "6" and/or "9" only.

    6 Suppresses the Failure to File on Correct Media Penalty when a Form 1065 is filed with 100 partners or more and any of the following conditions are present:
    • Inactive return

    • IRC 501d religious organization

    • Nominee Return

    • Substitute for Return (SFR)

    • Re-entry/re-input returns that have previously been e-filed.

    Note:

    CCC "6" is valid with CCC A, B, "F" , "R" , "W," "4" , "5" , "8" and/or "9" only.

    Note:

    CCC "6" is not necessary on MEF/e-filed returns.

    7 Reasonable Cause for failure to file a delinquent return was considered and denied.
    8 IRC 761(a)

    Note:

    CCC "8" is valid with CCC "A" , "B" , "F" , "R" , "W" , "4" , "6" and/or "9" only.

    9 Foreign Partnership (OSPC only)

    Note:

    Address on the return is foreign.

    Figure 3.12.15-3

    This is an Image: 33655003.gif

    Please click here for the text description of the image.

Field 01TXB - Tax Period Beginning

  1. Description - Field 01TXB is found to the left/near the title of page 1, Form 1065. The Tax Period Beginning Date is printed in YYYYMMDD format, e.g., September 1, 2022 is printed 20220901.

  2. Valid Condition - The Tax Period Beginning Date must be present if the return is a "Final" or a "Short Period" . The Tax Period Beginning date must be eight numbers.

  3. Invalid Condition - Field 01TXB is invalid if any of the following conditions are present:

    • The Tax Period beginning date is not all numbers.

    • The last two digits (month) are not 01-12.

    • The Tax Period beginning date is later than Tax Period end date (e.g., if tax period is 202112 and Tax Period beginning date is 1/1/2022 or later).

    • The Tax Period beginning date is earlier than 12 months before Tax Period end date (e.g., if tax period is 202212, and Tax Period beginning date is 11/01/2021 or earlier)

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Determine the correct Tax Period beginning from Form 1065. If it’s an "Initial return" , use the Date Business Started from the face of the Form 1065 entered in box E found to the right of the entity. For "Final" or "Short Period" returns, refer to the IF/THEN table in Error Code 008 for resolution.

Field 01NAI - North American Industry Code System (NAICS)

  1. Description - Field 01NAI is a number field found on page 1, Box "C" of Form 1065. The NAICS code identifies the partnership Principal Business Activity.

  2. Valid Condition:

    • Six numbers digits within a range of 000001-999000 on all full length records.

    • Blanks on all short length records. (See IRM 3.12.15.2.14.1)

  3. Invalid Condition:

    • Not numbers

    • Entry not within range of 000001-999000 for full length records.

    • Entry present and Section 02 is not present.

    • Entry has six of the same digits.

  4. Correction Procedures - Determine the correct NAICS Code in the following order:

    1. Form 1065, Box "C" , Business Code Number.

    2. Form 1065, Box "A" , Principal Business Activity.

    3. Form 1065, Box "B" , Principal Product or Service.

    If Then
    The box "C" is complete, Enter the NAICS Code if present.
    The correct code cannot be determined on a full length record,
    • If you cannot make the determination enter "999000" in Field 01NAI. (Figure 3.12.15-4)

    Field 01NAI is present on Short Record returns (Section 02 is not required), Delete the entry.
    Return is a Prior Year return with a Principal Industry Activity (PIA) Code or a PIA code with leading zeroes,
    1. If the NAICS Code cannot be determined, edit NAICS Code "999000" in Field 01NAI.

    Field 01NAI is present and Section 02 was not entered when required, Enter Section 02.

    Figure 3.12.15-4

    This is an Image: 33655004.gif

    Please click here for the text description of the image.

Field 01DOB - Date Business Started

  1. Description - Field 01DOB is a number field found on page 1, Box "E" of Form 1065.

    • Date Business Started is entered in year (YYYY), month (MM) format e.g., Dec. 31, 2021 is printed 202112.

  2. Valid Condition:

    • Valid characters are numbers only.

    • Field 01DOB may be blank.

  3. Invalid Condition:

    • The Date Business Started is not all numbers or blank.

    • The last two digits (month) are not 01-12.

  4. Correction Procedures:

    If Then
    Field 01DOB was transcribed or coded incorrectly, Enter the correct date from page 1, Box "E" . (Figure 3.12.15-5)
    A month is present but a year is not present, Enter "1950" for the year.
    A year is present but a month is not present, Enter "01" for the month.
    A year and month are not present in Box "E" or cannot be determined, DO NOT enter any data in Field 01DOB. Enter Computer Condition Code "A" in Field 01CCC.
    The partnership enters a future date as Date Business Started, DO NOT enter any data in Field 01DOB. Enter Computer Condition Code "A" in Field 01CCC.

    Figure 3.12.15-5

    This is an Image: 33655005.gif

    Please click here for the text description of the image.

Field 01NOP - Number of Partners

  1. Description - Field 01NOP is found on page 1, Line I on Form 1065.

    • This entry consists of the number of Schedules K-1 attached to the return.

    • It can be used to determine the number of partners in the partnership.

  2. Valid Condition:

    • Must be numbers, 2 through 999,999. See Figure 3.12.15-6.

  3. Invalid Condition:

    • Not numbers.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. If Form 1065, Line I (i) is zero or blank, check the return and attachments for any indication of the number of partners and enter in Field 01NOP.

    3. If the number of partners is not found, follow the procedures below:

      If And Then
      Amended return ("G" Coded),   GTSEC 01 and enter "G" in Field 01CCC.
      "Final" return,  
      1. GTSEC 01 and enter "F" in Field 01CCC.

      2. Enter "2" in Field 01NOP.

      IRC 736 or Treas. Reg. 1.736-1 (Payment to a retiring partner),   Enter "2" Field 01NOP.
      Reinput/Re-entry document,   Enter "2" in Field 01NOP.
      Returns filed for 201412 and before Tax Periods   Enter "2" in Field 01NOP.
      IRC 501(d) return (Religious and Apostolic Organizations),   Enter "2" in Field 01NOP.
      IRC 6020(b),  
      1. GTSEC 01 and enter "4" in Field 01CCC.

      2. Enter "6" in Field 01NOP.

      Short Record return, See IRM 3.12.15.2.14.1 for a description of a Short Record,   Enter "2" in Field 01NOP.
      Form 1065, Line 22 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Form 8825 is attached, and Line 21 on Form 8825≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Enter "2" in Field 01NOP.
      Form 1065, Line 22 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 8825 is not attached, Enter "2" in Field 01NOP.
      ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (1) If Schedules K-1 are attached, enter the number of Schedules K-1 to Field 01NOP and continue processing.
      (2) If Schedules K-1 are not attached, and there is no indication C&E issued Letter 1355C for the missing Schedules K-1, then:
      • GTSEC 01 and enter "33" in Field 01MSC.

      • enter "2" in Field 01NOP.

      Form 1065, Line 22 ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 8825 is not attached,
      1. Review the return and attachments for Schedules K-1 or an indication C&E issued Letter 1355C for missing Schedules K-1. and/or missing Form 8825, if needed, etc.

        Note:

        C&E is instructed to notate in the lower right hand corner of Form 1065 if they issue Letter 1355C

      2. If Schedules K-1 are attached, enter the number of Schedules K-1 to Field 01NOP and continue processing.

      3. If there is no indication Letter 1355C was sent, then:

        • GTSEC 01 and enter "33" in Field 01MSC.

        • enter "2" in Field 01NOP.

      Form 1065, Line 22 ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Form 8825 is attached,
      1. Review the return and attachments for Schedules K-1 or, an indication C&E issued Letter 1355C, e.g., for missing Schedules K-1. and any other condition, such as missing schedule, missing signature, etc.

        Note:

        C&E is instructed to notate in the lower right hand corner of Form 1065 if they issue Letter 1355C

      2. If there is no Schedules K-1 and no indication Letter 1355C was sent, then:

        • GTSEC 01 and enter 33 in Field 01MSC.

        • enter "2" in Field 01NOP.

    4. If the partnership shows that the number of Schedules K-1 is "1" or the attached Schedule K-1 shows 100 percent interest in the partnership, follow the procedures below:

      If Then
      Schedule K-1 shows two names in the partners' Name and Address Section, Correspond requesting Schedules K-1 for each partner using Letter 1355C.
      Partnership entity section shows:
      • "Limited Partnership" (LP)

      • "Limited Liability Partnership" (LLP)

      • "Limited Liability Company" (LLC)

      • "Limited Liability Land Trust" (LLLT)

      • "Unincorporated Business Organization" (UBO) or

      • "2" , "3" or "4" is present in Field 01LPC,

      1. GTSEC 01 and enter CCC "F" in Field 01CCC.

      2. Enter "2" in Field 01NOP.

      3. Advise the taxpayer that we are deleting the partnership filing requirement with a non-suspense Letter 3733C.

      Partnership shows payment to a retired or deceased partner or cites IRC 736 or Treasury Regulations 1.736–1, Enter "2" in Field 01NOP.
      The partnership shows this is a "Final" Return,
      1. GTSEC 01 and enter CCC "F" in Field 01CCC, if necessary.

      2. Enter 2 in Field 01NOP.

      The partnership does not show this is a final return or does not notate:
      • IRC 736 or Treas. Reg. 1.736-1

      • "Limited Liability Partnership" (LLP)

      • "Limited Liability Company" (LLC)

      • "Limited Liability Land Trust" (LLLT)

      • "Unincorporated Business Organization" (UBO),

      Correspond informing the partnership that the partnership cannot have one partner and ask for an explanation using Letter 1355C.
      The partnership submits a response to our request for Schedules K-1,
      1. Change the number of Schedules K-1 to the number given by the partnership.

      2. Write the DLN of the parent return in the upper left corner of the first Schedule K-1.

      3. Place Schedules K-1 in a gusset folder.

      4. Forward the folder with the Schedules K-1 to Batching & Numbering to process the Schedules K-1.

    Figure 3.12.15-6

    This is an Image: 33655006.gif

    Please click here for the text description of the image.

Field 01IRC - Initial Return Code

  1. Description - Field 01IRC is edited to the left of Line G, page 1 of Form 1065. (See Figure 3.12.15-7)

  2. Valid Condition - Blank or "2" .

  3. Invalid Condition - Entries other than "2" or blank.

  4. Correction Procedures:

    1. Correct coding and transcription errors. C & E will edit to the left of Line G. (See Figure 3.12.15-7)

    2. Field 01IRC must have a "2" if any of the following conditions is present:

    • Page 1, Box E has a Date Business Started that is within 12 months from the Tax Period ending date.

    • The "Initial Return" box on Line G is checked.

    • There is a taxpayer notation of "Initial Filing" , such as, "FIRST RETURN" , "NEW PARTNERSHIP" , etc.

    Figure 3.12.15-7

    This is an Image: 33655007.gif

    Please click here for the text description of the image.

Field 01TT - Technical Termination

  1. Description - Field 01TT is found on Line G, Box (6) Technical termination - also check (1) or (2), page 1 of Form 1065.

  2. Technical terminations have been repealed for partnerships with tax years beginning after 12-31-2017. Field 01TT should be blank for partnerships with a Tax Period Beginning date of 01-01-2018 or later.

  3. Valid Condition - Blank or "1" .

  4. Invalid Condition - Entries other than "1" or blank.

  5. Correction Procedures:

    If Then
    Box (6) on Line G is checked and boxes (3), (4), or (5) are not checked, Enter "1" in Field 01TT.

    Exception:

    Leave Field 01TT blank if the Tax Period Beginning date is 01-01-2018 or later.

    Box (6) on Line G is not checked Leave Field 01TT blank.

Field 01AMC - Accounting Method Code

  1. Description -Field 01AMC is found on Line H, page 1 of Form 1065.

  2. Valid Condition - Entry must be a number or blank.

  3. Invalid Condition - Field 01AMC will generate as an error if the Accounting Method Code is other than "1" , "2" , "3" or blank.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Code Field 01AMC as follows:

      If Then
      "Cash" box is checked, Enter "1" in Field 01AMC.
      "Accrual" box is checked, Enter "2" in Field 01AMC.
      "Other" box is checked, Enter "3" in Field 01AMC.
      No box is checked, Leave Field 01AMC blank.

Field 01M3 - Schedule M-3

  1. Description - Field 01M3 is found on Line J, page 1 of Form 1065.

  2. Valid Condition - "1" or blank.

  3. Invalid Condition - Entries other than "1" or blank.

  4. Correction Procedures:

    If Then
    Box (J) is checked Enter "1" in Field 01M3.
    Box (J) is not checked Leave Field 01M3 blank.

Field 01LPC - Limited Partnership Code

  1. Description - Field 01LPC is found on page 2, Schedule B, Line 1 of Form 1065.

  2. Valid Condition - Must be blank or a number "1" , "2" , "3" , "4" , "5" or "6" .

  3. Invalid Condition - Entry other than "1" , "2" , "3" , "4" , "5" , "6" or blank.

  4. Correction Procedures:

    1. Correct coding and transcription errors. If Field 01LPC was transcribed incorrectly, enter the correct code from page 2, Schedule B, Line 1. (See Figure 3.12.15-8)

    2. Determine the correct code as follows:

      If Then
      The "Domestic General Partnership" box is checked Enter "1" in Field 01LPC.
      The "Domestic Limited Partnership" box is checked Enter "2" in Field 01LPC.
      The "Domestic Limited Liability Company" box is checked Enter "3" in Field 01LPC.
      The "Domestic Limited Liability Partnership" box is checked Enter "4" in Field 01LPC.
      The "Foreign Partnership" box is checked Enter "5" in Field 01LPC.
      The "Other" box is checked Enter "6" in Field 01LPC.
      Multiple boxes are checked Enter code for the first box checked.
      No box is checked Leave blank.

    Figure 3.12.15-8

    This is an Image: 33655008.gif

    Please click here for the text description of the image.

Field 01DPC - Dual Partner Code

  1. Description - Field 01DPC is based on the partnership response to the question on page 2, Schedule B, Line 2 on prior year revisions of Form 1065.

  2. Valid Condition:

    1. Tax Period is 201811 or before.

    2. Blank or a number.

    3. "1" , "2" , "3" or blank on full length records.

    4. Blank on short length records.

  3. Invalid Condition:

    • Tax Period 201812 or later,

    • Other than "1" , "2" , "3" or blank on full length records.

    • Other than blank on short length records.

  4. Correction Procedures:

    If Then
    Field 01DPC was transcribed incorrectly, Enter the correct Dual Partner Code from page 2, Schedule B Line 2.
    The "Yes" box is checked, Enter "1" in Field 01DPC. Verify "4" is present in Field 01ADC.
    The "No" box is checked, Enter "2" in Field 01DPC.
    Both boxes are checked, Enter "3" in Field 01DPC.
    Neither box is checked or Tax Period is 201812 and later, Leave Field 01DPC blank.
    1. If Schedule B is not attached and the tax year is 1991 through 201811, determine and correct Field 01DPC as follows:

      If Then
      Schedule K-1 is attached and Question I (i) shows type of entity is "Partnership" (Question K on Tax Years 2004-2006, Question B on Tax Years 1993-2003 or Question C on Tax Years 1991-1992), Enter "1" in Field 01DPC.
      Schedule K-1 is not attached, Enter "2" in Field 01DPC.

Field 01FDC - Foreign/Domestic Corporation Code

  1. Description - Field 01FDC is based on the partnership response to the question on page 2, Schedule B, Line 2a* of Form 1065. *(Prior year revision, Line 3a).

  2. Valid Condition:

    • Blank or numbers

    • "1" , "2" , "3" or blank on full length records

    • Blank on short length records

  3. Invalid Condition:

    • Other than "1" , "2" , "3" or blank on full length records

    • Other than blank on short length records

  4. Correction Procedures:

    If Then
    Field 01FDC was transcribed incorrectly, Enter the correct Foreign Domestic Corporation Code from page 2, Schedule B. Line 2a.
    The "Yes" box is checked, Enter "1" in Field 01FDC.
    The "No" box is checked, Enter "2" in Field 01FDC.
    Both boxes are checked, Enter "3" in Field 01FDC.
    Neither box is checked, Leave Field 01FDC blank.

Field 01INE - Individual/Estate Ownership Code

  1. Description - Field 01INE is based on the partnership response to the question on page 2, Schedule B, Line 2b* of Form 1065. *(Prior year revision, Line 3b).

  2. Valid Condition:

    • Blank or number

    • "1" , "2" , "3" or blank on full length records

    • Blank on short length records

  3. Invalid Condition:

    • Other than "1" , "2" , "3" or blank on full length records

    • Other than blank on short length records

  4. Correction Procedures:

    If Then
    Field 01INE was transcribed incorrectly, Enter the correct Individual/Estate Ownership Code from page 2, Schedule B. Line 2b.
    The "Yes" box is checked, Enter "1" in Field 01INE.
    The "No" box is checked, Enter "2" in Field 01INE.
    Both boxes are checked, Enter "3" in Field 01INE.
    Neither box is checked, Leave Field 01INE blank.

Field 01PCS - Ownership of Foreign or Domestic Corporation Code

  1. Description - Field 01PCS is based on the partnership response to the question on page 2, Schedule B, Line 3a* of Form 1065. *(Prior year revision, Line 4a).

  2. Valid Condition:

    • Blank or number

    • "1" , "2" , "3" or blank on full length records

    • Blank on short length records

  3. Invalid Condition:

    • Other than "1" , "2" , "3" or blank on full length records

    • Other than blank on short length records

  4. Correction Procedures:

    If Then
    Field 01PCS was transcribed incorrectly, Enter the correct Ownership of Foreign or Domestic Corporation Code from page 2, Schedule B. Line 3a.
    The "Yes" box is checked, Enter "1" in Field 01PCS.
    The "No" box is checked, Enter "2" in Field 01PCS.
    Both boxes are checked, Enter "3" in Field 01PCS.
    Neither box is checked, Leave Field 01PCS blank.

Field 01DPT - Ownership of Foreign Partnership or Trust Code

  1. Description - Field 01DPT is based on the partnership response to the question on page 2, Schedule B, Line 3b* of Form 1065. *(Prior year revision, Line 4b).

  2. Valid Condition:

    • Blank or number

    • "1" , "2" , "3" or blank on full length records

    • Blank on short length records

  3. Invalid Condition:

    • Other than "1" , "2" , "3" or blank on full length records

    • Other than blank on short length records

  4. Correction Procedures:

    If Then
    Field 01DPT was transcribed incorrectly, Enter the correct Ownership of Foreign Partnership or Trust Code from page 2, Schedule B. Line 3b.
    The "Yes" box is checked, Enter "1" in Field 01DPT.
    The "No" box is checked, Enter "2" in Field 01DPT.
    Both boxes are checked, Enter "3" in Field 01DPT.
    Neither box is checked, Leave Field 01DPT blank.

Field 01PTT - Partnership Level Tax Treatment Election Code

  1. Description - Field 01PTT is based on the partnership response to the question on page 2, Schedule B, question 5 on prior year revisions of Form 1065.

  2. Valid Condition:

    1. Tax Period is 201811 or before,

    2. Blank or number

    3. "1" , "2" , "3" or blank on full length records

    4. Blank on short length records

  3. Invalid Condition:

    • Tax Period 201812 or later,

    • Other than "1" , "2" , "3" or blank on full length records

    • Other than blank on short length records

  4. Correction Procedures:

    If Then
    Field 01PTT was transcribed incorrectly, Enter the correct Partnership Level Tax Treatment Election Code from page 2, Schedule B. question 5.
    The "Yes" box is checked, Enter "1" in Field 01PTT.
    The "No" box is checked, Enter "2" in Field 01PTT.
    Both boxes are checked, Enter "3" in Field 01PTT.
    Neither box is checked or Tax Period is 201812 and later, Leave Field 01PTT blank.

Field 01DPA - Distribution of Property Code

  1. Description - Field 01DPA, Distribution of Property Code, is based on the partnership response to the question 10a* on Schedule B of Form 1065. *(Prior year revision, Line 12a).

  2. Valid Condition - Number or blank.

  3. Invalid Condition - Other than "1" , "2" , "3" or blank.

  4. Correction Procedures:

    If Then
    Field 01DPA was transcribed incorrectly, Enter the correct Distribution of Property Code from page 3, Schedule B, Line 10a.
    The "Yes" box is checked,
    1. Enter "1" in Field 01DPA.

    2. Verify "7" is present in Field 01ADC.

    3. If not present, enter "7" in Field 01ADC.

    The "No" box is checked, Enter "2" in Field 01DPA.
    Both boxes are checked,
    1. Enter "3" in Field 01DPA.

    2. Verify "7" is present in Field 01ADC.

    3. If not present, enter "7" in Field 01ADC.

    Neither box is checked, Leave Field 01DPA blank.
    Before 199512, DO NOT code.

Field 01DRE - Form 8858 Attached

  1. Description - Field 01DRE is based on the partnership entry on page 3, Schedule B, Line 13* on Form 1065. *(Prior year revision, Line 15).

  2. Valid Condition - Number or blank.

  3. Invalid Condition:

    • No number

    • Entry other than "0" through "999999 "

  4. Correction Procedures:

    If Then
    Field 01DRE was transcribed incorrectly, Enter the correct number of Form 8858 attached from page 3, Schedule B, Line 13.
    The entry is greater than "1" ,
    1. Verify "2" is present in Field 01ADC.

    2. If not present, enter "2" in Field 01ADC.

Field 01FPI - Form 8805 Attached

  1. Description - Field 01FPI is based on the partnership entry on page 3, Schedule B, Line 14* on Form 1065. *(Prior year revision, Line 16).

  2. Valid Condition - Number or blank.

  3. Invalid Condition:

    • No number

    • Entry other than "0" through "999999"

  4. Correction Procedures:

    If Then
    Field 01FPI was transcribed incorrectly, Enter the correct number of Form 8805 attached from page 3, Schedule B. Line 14.
    The entry is greater than "1" ,
    1. Verify "2" is present in Field 01ADC.

    2. If not present, enter "2" in Field 01ADC.

Field 01FPC - Foreign Partner Code

  1. Description - Field 01FPC, Foreign Partner Code, is based on the partnership response to the question 14* on Schedule B on Form 1065, "Does this partnership have any foreign partners?" . *(Prior year revision, Question 16).

  2. Valid Condition - Number or blank.

  3. Invalid Condition - Entries other than "1" , "2" , "3" , or blank.

  4. Correction Procedures:

    If Then
    Field 01FPC was transcribed incorrectly, Enter the correct Foreign Partner Code from page 2, Schedule B, Line 14 .
    The "Yes" box is checked,
    1. Enter "1" in Field 01FPC.

    2. Verify "2" is present in Field 01ADC.

    3. If not present, enter "2" in Field 01ADC.

    The "No" box is checked, Enter "2" in Field 01FPC.
    Both boxes are checked, Enter "3" in Field 01FPC.
    Neither box is checked, Leave Field 01FPC blank.

    Figure 3.12.15-9

    This is an Image: 33655009.gif

    Please click here for the text description of the image.

Field 01IR1 - Form 8865 Attached

  1. Description - Field 01IR1 is found on page 2, Schedule B, Line 15* on Form 1065. *(Prior year revision, Line 17).

  2. Valid Condition - Number or blank.

  3. Invalid Condition:

    • Not a number.

    • Entry other than "0" through "999999" .

  4. Correction Procedures:

    If Then
    Field 01IR1 was transcribed incorrectly, Enter the correct number from page 2, Schedule B, Line 15.
    Field 01IR1 has an entry greater than "1" ,
    1. Verify "2" is present in Field 01ADC.

    2. If not present, enter "2" in Field 01ADC.

Field 01NFC - Form 5471 Attached

  1. Description - Field 01NFC is found on page 3, Schedule B, Line 17* on Form 1065. *(Prior year revision, Line 19).

  2. Valid Condition - Number or blank.

  3. Invalid Condition:

    1. Not a number.

    2. Entry other than zero (0) to 999.

  4. Correction Procedures:

    If Then
    Field 01NFC was transcribed incorrectly, Enter the correct number from page 3, Schedule B, Line 17.

Field 01ELC - Partnership Audit Election Code

  1. Description - Field 01ELC is found on page 3, Schedule B, Line 30 on Form 1065.

    Note:

    Field 01ELC for Prior Year 2021, Partnership Audit Election Code - found on page 3, Schedule B, Line 29 on Form 1065. For prior year revisions 202012 and before, Partnership Audit Election Code - found on page 3, Schedule B, Line 25 on Form 1065.

  2. Invalid Conditions:

    1. Blank.

    2. An entry other than "0" , "1" , "2" , or "3" .

    3. Tax Period is before 201812.

  3. Correction Procedures:

    1. Correct coding errors, transcription errors, and misplaced entries.

    If Then
    Field 01ELC was transcribed incorrectly, Enter the correct Partnership Audit Election Code from page 3, Schedule B, Line 30.
    Form 1065, Schedule B, Line 30 is "Yes" , Enter "1" in Field 01ELC.
    Form 1065, Schedule B, Line 30 is "No" , Enter "2" in Field 01ELC.
    Both the "Yes" and "No" boxes are checked, Enter "3" in Field 01ELC.
    Neither box is checked, Enter "0" in Field 01ELC.
    Tax Period is before 201812, Enter "0" in Field 01ELC.

Field 01SK1 - Total Number of Schedules K-1 (From Schedule B-2, Part III, Line 3)

  1. Description - Field 01SK1 is found on page 3, Schedule B, Line 29 next to the statement, (prior year, Line 25) "Enter the total from Schedule B-2, Part III, Line 3" , on Form 1065.

  2. Invalid Condition:

    • Not a number.

    • Entry other than one to 999.

    • Tax Period is before 201812.

  3. Correction Procedures:

    1. Correct coding errors, transcription errors, and misplaced entries.

    If Then
    Field 01SK1 was transcribed incorrectly, Enter the correct number from page 3, Schedule B, Line 29.

    Exception:

    If greater than 999, see below.

    Field 01SK1 is more than 999, Delete the amount and enter 001.
    Field 01SK1 is blank or not numeric, Enter 000.
    Tax Period is before 201812, Delete the amount and enter 000.

Field 01CRT - Form 8996, Qualified Opportunity Fund Code

  1. Description - Field 01CRT is found on page 3, Schedule B, Line 25 on Form 1065.

    Note:

    For prior years 202012 and before, Line 26.

  2. Invalid Conditions:

    1. Blank.

    2. An entry other than "0" , "1" , "2" , or "3" .

    3. Tax Period is before 201812.

  3. Correction Procedures:

    1. Correct coding errors, transcription errors, and misplaced entries.

    If Then
    Field 01CRT was transcribed incorrectly, Enter the correct Qualified Opportunity Fund Code from page 2, Schedule B, Line 25.
    Form 1065, Schedule B, Line 25 is "Yes" , Enter "1" in Field 01CRT.
    Form 1065, Schedule B, Line 25 is "No" , Enter "2" in Field 01CRT.
    Both the "Yes" and "No" boxes are checked, Enter "3" in Field 01CRT.
    Neither box is checked, Enter "0" in Field 01CRT.
    Tax Period is before 201812, Enter "0" in Field 01CRT.

    Note:

    If Form 8996 is attached, verify "6" is present in Field 01RP1.

Field 01QOF - Form 8996, Qualified Opportunity Fund Amount

  1. Description - Field 01CRT is found on page 3, Schedule B, Line 25 on Form 1065.

    Note:

    For prior years 202012 and before, Line 26.

  2. Valid Condition - Blank or up to 15 numbers, positive only, dollars and cents; valid for Tax Periods 201812 and later.

  3. Invalid Condition:

    • Field is other than all numbers or blank.

    • Field is negative.

    • Tax Period is before 201812.

  4. Correction Procedures:

    1. Correct transcription errors.

    2. If the amount is negative, delete the field.

    3. If the Tax Period is before 201812, delete the field.

    Note:

    If Form 8996 is attached, verify "6" is present in Field 01RP1.

Field 01NFP - Form 1065, Schedule B, Line 26 - Number of Foreign Partners that disposed of an interest or received distributions

  1. Description - Field 01NFP is a number field on Form 1065, Schedule B, Line 26.

    Note:

    For prior years 202012 and before, Line 27.

  2. Valid Condition - Blank or up to 5 numbers. Accept 00000 through 99999, valid for Tax Periods 201912 and later.

  3. Invalid Condition:

    • Field is other than all numbers

    • Field is other than 00000 through 99999

    • Tax Period is before 201912

  4. Correction Procedures:

    1. Correct transcription errors.

    2. If other than 00000 through 99999, delete the field.

    3. If the Tax Period is before 201912, delete the field.

Field 01TSF - Form 1065, Schedule B, Question 27 - Were there any transfers between the Partnership and its partners subject to disclosure requirements

  1. Description - Field 01TSF is a checkbox for transfers between the partnership and its partners subject to disclosure of Regulations section 1.707-8 on Form 1065, Schedule B, Question 27. Code and Edit will edit a "1" , "2" , or "3" to the right of Question 27.

    Note:

    For prior years 202012 and before, Line 28.

  2. Valid Condition - A "0" , "1" , "2" or "3" is valid for this field. Editing is done to the right of Question 27 and valid for Tax Periods 2019 and later.

  3. Invalid Condition:

    • Field is other than a number

    • Field is other than "0" , "1" , "2" , or "3"

    • Tax Period is before 201912

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Use the following instructions:

      If Then
      "Yes" is marked, Enter a "1" .
      "No" is marked, Enter a "2" .
      Both boxes are checked, Enter a "3" .
      Neither box is checked, Enter a "0" .
      Other than "0" , "1" , "2" , or "3" , Delete the field.

    3. If the Tax Period is before 201912, delete the field.

Field 01NTF - Form 1065, Schedule B, Question 29 - List the number of separate Schedules K-1 and Schedules K-3 that you did not or will not furnish timely in accordance with section 6031(b)

  1. Description - Field 01NTF is a number field found on Form 1065, page 3, Schedule B, Question 29.

  2. Valid Condition - Numbers or blank.

  3. Invalid Condition:

    • Field is other than a number

    • Tax Period is before 202201

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. If other than a number, delete the field.

    3. If the Tax Period is before 202201, delete the field.

Field 01ADC - Audit Code

  1. Description - Field 01ADC is a number field edited in the left margin next to Line 9 of Form 1065. Identified by "1 -" followed by the appropriate audit code(s). Audit codes are used to identify specific conditions requested by Examination.

  2. Valid Condition:

    • Numbers (maximum of nine codes).

    • Must be "1" , "2" , "3" , "4" , "5" , "6" , "7" , "8" , "9" or blank.

    • Field 01ADC may be present on short length records.

  3. Invalid Condition:

    • Not numbers or blank.

    • More than nine Audit Codes used at one time.

    • A digit or character appears after the first blank.

  4. Correction Procedures:

    If Then
    Field 01ADC was transcribed incorrectly, Enter the correct code from the left margin next to Line 9.
    The Audit Code was coded incorrectly, Complete one of the following:
    1. Delete any invalid digits or characters.

    2. Delete any duplicate digits or characters.

    3. Delete any blanks between valid digits.

    4. Re-edit following the instructions below.

    Audit Code Enter when any of the following conditions exist
    1
    • Form 8082, Notice of Inconsistent Treatment or Administrative Adjustment Request (AAR), is attached.

    • Form 8275 or Form 8275-R, Disclosure Statement, is attached or statement referring specifically to IRC 6662 (Disclosure) or IRC 707 (Disguised Sale).

    • Form 8886, Reportable Transaction Disclosure Statement, is attached.

    • Section 761(a) election that is "Selected" by Examination.

    • Form 1065 has the notation "Disregarded Entity" in the header or entity portion of the return (on page 1, Form 1065).

    2
    • Form 1065, page 2, Schedule B, Box 1(e), Foreign Partnership is checked.

    • Form 1065, page 3, Schedule B, Line 9 (Foreign Trust), is answered "Yes"

    • Form 1065, page 3, Schedule B, Line 13 (Field 01DRE) has an entry≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Form 1065, page 3, Schedule B, Line 14 (Field 01FPI) has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or Field 01FPC is answered "Yes" .

    • Form 1065, page 3, Schedule B, Line 15 (Field 01IR1) has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    • Form 1065, page 4, Schedule K, Line 16p (Total Foreign Taxes) has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    • Form 5471, Information Return of U.S. Persons with Respect to Certain Foreign Corporations, is attached.

    • Form 5472, Information Return of a 25% Foreign Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, is attached.

    • Form 5713, International Boycott Report, is attached and both questions in 7(f) are answered "Yes" .

    • Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund, is attached and Part V, Lines 15a - 16f, has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (For Tax Year 2011 and before, refer to Part IV, Lines 10a - 11f)

    • Form 8804, Annual Return for Partnership Withholding Tax (Section 1446), is attached.

    • Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, is attached.

    • Form 8813, Partnership Withholding Tax Payment Voucher (Section 1446), is attached.

    • Form 8832, Entity Classification Election, is attached and either box 6(d), (e) or (f) is checked.

    • Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), is attached.

    • Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs), is attached.

    • Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, is attached.

    3 Form 1065, page 4, Schedule K, Lines 19a or 19b ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    4
    • Form 1065, page 4, Schedule K, Line 9c ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 1065, page 4, Schedule K, Line 10 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    • Form 1065, Schedule B, Question 2 (Dual Partner Code) is present and the Yes box is checked (for Tax Periods 201811 and before on prior year revisions).

    5
    • Form 8283, Noncash Charitable Contributions, is attached and Part I, Question 2, Art (contribution of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡), is checked. (page 2, Part I, Question 4 for 2019 and before) or

    • Form 8283, Noncash Charitable Contributions, is attached and page 2, Part I, Question 3, Column (c) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. (page 2, Part I, Question 5, Column (c) for 2019 and before).

    • Form 8594, Asset Acquisition Statement, is attached ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    • Form 8883, Asset Allocation Statement Under Section 338, is attached and the amount in Part IV, Box 5a, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    6 Form 3115, Application for Change in Accounting Method, is attached.
    7
    • Form 1065, page 3, Schedule B, Question 10a (Field 01DPA) is answered Yes.

    • Form 1065, page 4, Line 16p, Total Foreign Taxes, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    • Form 5713, International Boycott Report, is attached and either one or both questions in 7(f) is not answered "Yes" .

    • Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund, is attached and Part V, Lines 15a - 16f has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. (For Tax Year 2011 and before, refer to Part IV, Lines 10a - 11f.)

    8 Schedule M-3, Net Income (Loss) Reconciliation for Certain Partnerships, is attached.

    Caution:

    All returns with a Schedule M-3 attached must be sent to Ogden for processing.

    9 Schedule M-2, Line 6b (Property Distribution), ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Field 01SIC - Special Income Code

  1. Description - Field 01SIC is edited in the left margin next to Line 9 of Form 1065 as "2 - 1" if any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

  2. Valid Condition - Valid characters are "1" and blank.

  3. Invalid Condition - Field 01SIC will generate as an error if the Special Income Code is other than "1" or blank.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. If any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the Special Income Code must be "1" .

Field 01CRD - Correspondence Received Date

  1. Description - Field 01CRD is a number field found on the partnership reply to correspondence.

  2. Valid Condition - Field 01CRD must be numbers and in MMDDYYYY format.

  3. Invalid Condition - Field 01CRD is invalid if either of the following conditions are present:

    • Not numbers.

    • Not in YYYYMMDD format.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Determine the CRD from the date the reply was received at the campus. If the reply was not date stamped, use the U.S. Postal Service postmark date on the envelope attached to the reply.

      Note:

      For certified mail only - If a postmark is not present, look for a "USPS.com Track & Confirm" record that has been attached to the return (should be before the envelope. See Figure 3.12.15-7). Use the Acceptance date on the record to determine timeliness, follow normal editing procedures. If the "USPS.com Track & Confirm" record is not attached, no action is required.

    3. If more than one CRD is present, use the CRD that made the return complete and processable.

    4. Do not enter the CRD when any of the following conditions are present:

      Do not enter CRD
      • The correspondence was received before the due date of the return

      • The correspondence was required because of an IRS processing error, for example, a request for a return or schedule that we lost during processing

      • The correspondence was not necessary

      • The correspondence was issued in error

    5. If the reply was missing, incomplete or the notice was undeliverable, enter CCC "3" in Field 01CCC.

      Note:

      If there is an indication that Entity Control has assigned an EIN to the return, enter the entity assignment date found in the lower left-hand corner of the return, in Field 01CRD if it is later than the actual Correspondence Received Date.

Field 01ISI - Installment Sales Indicator

  1. Description - Field 01ISI is edited in the left margin next to Line 9 of Form 1065 as "3 -" followed by the appropriate code when Form 6252, Computation of Installment Sales Income, is attached.

  2. Valid Condition - Numbers "1" , "2" , "3" or blank.

    Exception:

    If multiple Form 6252 are attached, enter code "1" in Field 01ISI if at least one Form 6252 has a positive (Yes) response. If Form 6252 is not attached, Field 01ISI will be blank.

  3. Invalid Condition - Field 01ISI will generate as an error if the Installment Sales Indicator Code is other than "1" , "2" , "3" , or blank.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Examine the return and attachments to determine the correct code.

    3. Delete the incorrect entry and enter the correct code on the screen and in the left margin next to Line 9 as "3 -" followed by the correct code.

    4. If a code cannot be determined, leave Field 01ISI blank.

    ISI Code Description
    1 Shows a "Yes" to Question "3" of Form 6252, Installment Sale Income.
    2 Shows a "No" to Question "3" of Form 6252.
    3 Shows that Form 6252 is attached but there is a multiple, illegible or no response to Question "3" .

Field 01NRL - Nonrecourse Loan Code

  1. Description - Field 01NRL is edited in the left margin next to Line 9 of Form 1065 as "4 -1" when there is an entry on Schedule L, Line 18, Columns (b) or (d) and/or Schedule K-1, Question K, Nonrecourse.

  2. Valid Condition - Valid entries are "1" or blank.

    • Code "1" if there is an amount other than zero on Schedule L, Line 18, Columns (b) or (d) or when there is an attachment that shows a Nonrecourse Loan.

  3. Invalid Condition - Field 01NRL will generate as an error if the Nonrecourse Loan Code is other than a "1" or blank.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Examine the return and attachments to determine the correct code.

    3. If a code is not present, delete the entry.

Field 01MSC - Missing Schedule Code

  1. Form 1065 will be charged penalties for not providing a complete return. Code and Edit (C&E) will be responsible for initiating correspondence when needed, requesting the missing information, and ERS will be responsible for coding Field 01MSC appropriately if the missing information is not received.

  2. Enter Field 01MSC whenever the taxpayer does not respond to our request for missing information. See the chart below for the correct code:

    MSC Missing Schedule(s)
    33 Schedule K-1
    34 Schedule L (Balance Sheet)
    36 Schedule K-1 and Schedule L
    45 Schedule K
    46 Schedule K and Schedule K-1
    47 Schedule K and Schedule L
    49 Schedule K, Schedule K-1 and Schedule L

  3. Invalid Condition - Field 01MSC will generate as an error when any of the following conditions exist:

    • Field 01MSC is invalid if it is not numbers and not one of the Missing Schedule Codes shown above.

    • The same Missing Schedule Code appears more than once.

    • The Missing Schedule Code does not begin in the first position of the field.

    Note:

    There is always a possibility that a Missing Schedule Code is edited by C & E. However, employees working the suspense files of the Error Resolution System (ERS) must enter the appropriate code based on the response received from the taxpayer.

  4. Correction Procedures:

    1. Correct all coding and transcription errors.

  5. Suspense Procedures:

    If Then
    Taxpayer responds with missing information, Enter Correspondence Received Date in Field 01CRD and continue processing.
    Taxpayer does not respond, Enter appropriate Missing Schedule Code in Field 01MSC as shown in (2) above.
    Taxpayer does not give missing TINs on Schedule K-1, Enter Missing Schedule Code "33" in Field 01MSC and continue processing.
    Taxpayer gives missing Schedules K-1 and/or missing TINs, Write the DLN of the return on the first Schedule K-1, in the upper left hand corner, then detach and send for processing. Enter Correspondence Received Date in Field 01CRD.

    Caution:

    Enter missing TINs on each Schedule K-1 before detaching for processing.

Field 01HSC - Historic Structure Code

  1. Description - Field 01HSC is edited in the left margin next to Line 9 of Form 1065 as "6 - 3" when there is an entry on Form 3468 (Investment Credit) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

  2. Valid Condition - Valid Historic Structure Codes are "3" and blank.

  3. Invalid Condition - Field 01HSC will generate as an error when the Historic Structure Code is other than "3" or blank.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Determine the correct code from the return and attachments.

      If And Then
      The tax year is 2016 or later, There is an amount on Form 3468, Part III, Line 11e or f, Enter "3" in Field 01HSC.
      The tax year is 2010 to 2015, There is an amount on Form 3468, Part III, Line 11e, f, g, h, i, or j, Enter "3" in Field 01HSC.
      The tax year is 2008 or 2009, There is an amount on Form 3468, Part III, Line 10e, f, g, h, i, or j, Enter "3" in Field 01HSC.
      The tax year is 2006 or 2007, There is an amount present on Form 3468, Line 1e, f, g, or h, Enter "3" in Field 01HSC.
      The tax year is 1996 to 2005, There is an amount present on Form 3468, Part I, Line 1b or 1c, Enter "3" in Field 01HSC.
      The tax year is 2008 and before, Form 3468 is not attached, Leave Field 01HSC blank.

Field 01SWC - Salary and Wage Code

  1. Description - Field 01SWC is edited in the right margin next to Line 9 of Form 1065.

  2. Valid Condition - Valid entries are "1" and blank.

  3. Invalid Condition - Field 01SWC will generate as an error when the Salary and Wage Code is other than a "1" or blank.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Field 01SWC must have a "1" if any of the following conditions exist:

      Criteria for Field 01SWC
      • An entry is present on page 1, Line 9, Form 1065

      • An entry is present on Form 1125-A, Line 3

      • An entry is present on Form 8825, Line 13, Columns A-H

      • An entry is present on Form 4835, Farm Rental Income and Expenses, Line 20

      • An entry is present on Schedule F, Line 22 (Rev 2011), or on Schedule F, Line 24 (Rev 2010 and before)

      • An attachment shows an amount to support any of the above entries

    3. In all other cases, Field 01SWC is blank.

Field 01EP - EPMF Code

  1. Description - Field 01EP is edited to the right of Line 18 of Form 1065.

  2. Valid Condition - Valid entries are "1" and blank.

  3. Invalid Condition - Field 01EP will generate as an error when the EPMF Code is other than "1" or blank.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Field 01EP must have a "1" if any of the following conditions exist:

      Criteria for Field 01EP
      • An entry on Line 18, Form 1065.

      • An entry on Line 23, Schedule F (Form 1040) Farm Income and Expenses.

      • An entry on Line 21, Form 4835 (Form 1040) Farm Rental Income and Expenses

      • An entry on Line 19, Schedule C (Form 1040), Profit or Loss from Business.

      • An attachment shows an amount to support any of the above entries.

    3. If Field 01EP is blank, delete the entry on the screen.

Field 01PSN - Preparer Social Security Number
Field 01PEN - Preparer Employer Identification Number

  1. Description - Field is transcribed from the right of the Paid Preparer section of Form 1065 (below the Taxpayer Signature section). Data may or may not be present in Fields 01PSN and 01PEN.

  2. Valid Condition - Entries are blank, all numbers or a "P" for the first character followed by eight number characters, such as the Preparer Tax Identification Number (PTIN).

    Note:

    A Preparer Tax Identification Number (PTIN) is a valid entry in Field 01PSN. The format for a PTIN is a nine-digit number beginning with the alpha "P" (i.e., P XXXXXXXX).

  3. Invalid Condition - Fields 01PSN and 01PEN are invalid if any of the following conditions are present:

    • Field 01PSN is other than nine numbers or a "P" followed by eight digits.

    • Field 01PEN is other than nine numbers.

    • Fields have all zeroes.

    • Fields have all nines.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. If Fields 01PSN or 01PEN are invalid, determine as follows:

      If Then
      Only a valid PTIN is present, Enter the PTIN in Field 01PSN and on Form 1065.
      Only a valid EIN is found, Enter the EIN in Field 01PEN and on Form 1065.
      Only a valid SSN is found, Enter the SSN in Field 01PSN and on Form 1065.
      A valid PTIN is present and an EIN is also present, Enter the PTIN in Field 01PSN and on Form 1065.
      A valid PTIN is present and a SSN is also present, Enter the PTIN in Field 01PSN and on Form 1065.
      A valid PTIN is not present but both an EIN and SSN are present, Enter the SSN in Field 01PSN and on Form 1065.
      A valid TIN (PTIN, EIN or SSN) cannot be found, Delete Fields 01PSN and 01PEN.

Field 01CBI - Paid Preparer Checkbox Indicator

  1. Description - The paid preparer check box indicator is transcribed from the bottom of page 1, Form 1065, to the right of the signature date. The checkbox is used to show whether the partnership has elected to allow the paid preparer to answer questions about the partnership return as it is processed. Data may or may not be present in Field 01CBI.

  2. Valid Condition - Valid entries are "1" and blank.

  3. Invalid Condition - Field 01CBI will generate as an error when the Paid Preparer Checkbox Indicator is other than "1" or blank.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Enter a "1" in Field 01CBI on the screen if the "Yes" box is checked.

    3. Delete Field 01CBI if "No" box is checked, both boxes are checked or there is no entry.

    4. If invalid, delete the entry on the screen.

Field 01PTN - Paid Preparer Telephone Number

  1. Description - The paid preparer telephone number is transcribed from the bottom of page 1, Form 1065, below the paid preparer EIN. Data may or may not be present in Field 01PTN.

  2. Valid Condition - Field 01PTN must be alpha or numeric or a combination of alpha and numeric characters, not to exceed 10 characters or blank.

  3. Invalid Condition - Field 01PTN will generate as an error when the Paid Preparer Telephone Number is other than 10 alpha/numerics.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. If a telephone number is invalid, delete the entry on the screen.

Field 01RP1 and Field 01RP2 - Return Processing Code (RPC)

  1. Description - A Return Processing Code (RPC) is an alpha or numeric character used to identify a specific condition for the computer. The RPC is edited on page 1, in the right margin next to line 1c of Form 1065.

  2. Valid Condition - Field 01RP1 must be alpha or numeric or a combination of alpha and numeric characters, not to exceed 20 characters or blank.

  3. Invalid Condition:

    • Characters are other than "A" through "Z" or "1" through "9" .

    • More than 20 characters.

      Note:

      If more than 20 RPCs are needed, enter more RPCs in Field 01RP2.

  4. Correction Procedures:

    1. Correct misplaced entries and transcription errors.

    2. When the code(s) entered on the return are illegible or invalid, examine the return and enter the correct code from the table below:

      Note:

      RPCs do not need to be entered in any specific order.

    RPC Explanation
    A Form 5471, Schedule E, Income, War Profits, and Excess Profits Taxes Paid or Accrued, is attached.
    B Form 5471, Schedule H, Current Earnings and Profits, is attached.
    C Form 5471, Schedule I-1, Information for Global Intangible Low-Taxed Income, is attached.
    D Form 5471, Schedule P, Previously Taxed Earnings and Profits of U.S. Shareholder in Certain Foreign Corporations, is attached.
    E Form 8865, Schedule G, Statement of Application of the Gain Deferred Method Under Section 721(c), is attached.
    F Form 8865, Schedule H, Acceleration Events and Exceptions Reporting Relating to Gain Deferral Method Under Section 721(c), is attached.
    G Form 5471, Schedule G-1, Cost Sharing Arrangement.
    2 Form 8992, U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (GILTI), is attached.
    4 Form 8994, Employer Credit for Paid Family and Medical Leave, is attached.
    6 Form 8996, Qualified Opportunity Fund, is attached.
    7 Form 8990, Limitation on Business Interest Expense IRC 163(j), is attached.
    9 Form 8997, Initial and Annual Statement of Qualified Opportunity Fund "QOF" Investments, is attached.

Section 02 Errors

  1. This section gives instructions for correcting Section 02 error conditions.

General Information

  1. Section 02 has monetary amounts.

  2. The entries are of variable lengths.

  3. All entries are dollars only.

  4. If any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, the Special Income Code must be "1" .

Error Record Format

  1. Data in Section 02 is obtained from Form 1065. See Exhibit 3.12.15-2, Form 1065, U.S. Return of Partnership Income.

  2. The Form 1065 field designators, the title and the location on the return where the data is obtained is shown below:

    Field Designator Maximum Length Title Positive/Negative Location on Form 1065
    0201A 15 Gross Receipts or Sales (±) Form 1065, page 1, Line 1a
    0201B 15 Returns and Allowances (±) Form 1065, page 1, Line 1b
    0202 15 Cost of Goods Sold (±) Form 1065, page 1, Line 2
    0204 15 Ordinary Income (Loss) from Other Partnerships and Estates and Trusts (±) Form 1065, page 1, Line 4
    0205 15 Net Farm Profit (Loss) from Schedule F (±) Form 1065, page 1, Line 5
    0206 15 Net Gain (Loss) from Form 4797 (±) Form 1065, page 1, Line 6
    0207 15 Other Income (±) Form 1065, page 1, Line 7
    0208 15 Total Income (±) Form 1065, page 1, Line 8
    02TAS 15 Total Assets (±) Form 1065, page 1, Box "F"
    02K02 15 Net Rental Real Estate Income (Loss) (±) Form 1065, Schedule K, Line 2
    02K3A 15 Gross Income (Other Rental Activities) (±) Form 1065, Schedule K, Line 3a
    02K3C 15 Balance Net Income (Loss) (Other Rental Activities) (±) Form 1065, Schedule K, Line 3c
    02K05 15 Interest Income (±) Form 1065, Schedule K, Line 5
    02K6A 15 Ordinary Dividend Income (±) Form 1065, Schedule K, Line 6a
    02K07 15 Royalty Income (±) Form 1065, Schedule K, Line 7
    02K9A 15 Net Long Term Capital Gain (Loss) (±) Form 1065, Schedule K, Line 9a
    02K10 15 Net Gain (±) Form 1065, Schedule K, Line 10
    02K11 15 Other Income Amount (±) Form 1065, Schedule K, Line 11
    02KA1 15 Partnerships to which Section 42(j)(5) applies (+) Form 1065, Schedule K, Line 15a
    02KA4 15 Other than on Line 15a(1) (+) Form 1065, Schedule K, Line 15b
    02KB1 15 Qualified Rehab (+) Form 1065, Schedule K, Line 15c
    02ITR 1 International Tax Reporting Checkbox (+) Form 1065, Schedule K, Line 16
    02FTP 15 Foreign Gross Passive Income (±) Form 1065, Schedule K, Line 16f

    Note:

    Field applicable to tax years 202012 and prior.

    02FTG 15 Foreign Gross Income - Other (±) Form 1065, Schedule K, Line 16h

    Note:

    Field applicable to tax years 202012 and prior.

    02DIN 15 Interest Expense at Partners Level (±) Form 1065, Schedule K, Line 16i

    Note:

    Field applicable to tax years 202012 and prior.

    02DED 15 Foreign Deductions at Partners Level - Other (±) Form 1065, Schedule K, Line 16j

    Note:

    Field applicable to tax years 202012 and prior.

    02DAP 15 Deductions on Foreign Source Income at Partnership Level - Passive (±) Form 1065, Schedule K, Line 16m

    Note:

    Field applicable to tax years 202012 and prior.

    02DAG 15 Deductions on Foreign Source Income at Partnership Level - Other (±) Form 1065, Schedule K, Line 16o

    Note:

    Field applicable to tax years 202012 and prior.

    02FTC 15 Total Foreign Taxes (±) Form 1065, Schedule K, Line 16p

    Note:

    Field applicable to tax years 202012 and prior.

    02FTR 15 Reduction in Foreign Taxes (±) Form 1065, Schedule K, Line 16q

    Note:

    Field applicable to tax years 202012 and prior.

    02MCV 15 Merchant Card Vendor (±) Form 1065, (Rev 2011 only), Line 1a

    Note:

    Field applicable only to Tax Year 2011

  3. Invalid Condition - Any field in Section 02 will be invalid if not all numbers.

    Exception:

    Field 02ITR is a checkbox.

  4. Correction procedures - Check for coding and transcription errors or misplaced entries.

Field 02ITR - International Tax Reporting Checkbox

  1. Field 02ITR is transcribed from Form 1065, Schedule K, Line 16.

  2. Field 02ITR is a 1 digit field valid for tax periods 202112 and later.

  3. Invalid Condition:

    • The field length is more than 1 character and not "0" or "1"

    • The tax period is before 202112

  4. Correction Procedures:

    1. Correct coding errors, transcription errors, and misplaced entries.

    2. If the tax period is before 202112; delete the field.

Section 03 Errors

  1. This section identifies Section 03 field errors.

General Information

  1. Section 03 has monetary amounts.

  2. The entries are of variable lengths.

  3. All entries are dollars only except 03TAX on Form 1065 which can be dollars and cents.

  4. If any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ the Special Income Code must be "1" .

Error Record Format

  1. Data in Section 03 is obtained from Form 1065, Form 8825 (Rental Real Estate Income and Expenses of a Partnership or an S Corporation) and Schedule F (Profit or Loss From Farming). See Exhibit 3.12.15-2, Form 1065, U.S. Return of Partnership Income.

  2. The Form 1065 field designators, the title and the location on the return where the data is obtained is shown below:

    Field Designator Field Length Title Positive/Negative Location on Form 1065
    0309 15 Net Salary and Wages (Other than to partners) (+) Form 1065, page 1, Line 9
    0310 15 Guaranteed Payments to Partners (+) Form 1065, page 1, Line 10
    0311 15 Repairs Deduction (±) Form 1065, page 1, Line 11
    0312 15 Bad Debts Deduction (±) Form 1065, page 1, Line 12
    0313 15 Rent Deduction (+) Form 1065, page 1, Line 13
    0314 15 Taxes/Licenses (+) Form 1065, page 1, Line 14
    0315 15 Net Interest (+) Form 1065, page 1, Line 15
    0316C 15 Depreciation Deduction (±) Form 1065, page 1, Line 16c
    0317 15 Depletion (±) Form 1065, page 1, Line 17
    0318 15 Retirement Programs (±) Form 1065, page 1, Line 18
    0319 15 Employee Benefit Plans (±) Form 1065, page 1, Line 19
    0320 15 Other Deductions (±) Form 1065, page 1, Line 20
    0321 15 Total Deductions (±) Form 1065, page 1, Line 21
    0322 15 Ordinary Income (Loss) from Business (±) Form 1065, page 1, Line 22
    03TAX 15 3.5 percent Tax (+) Form 1065, page 1, write-in above Line 22.
    03A01 15 Beginning Inventory Amount (+) Form 1125-A, Line 1
    03A02 15 Net Purchases (±) Form 1125-A, Line 2
    03A06 15 Total Costs (±) Form 1125-A, Line 6
    03A07 15 Ending Inventory Amount (+) Form 1125-A, Line 7
    03H02 15 Gross Rents (+) Form 8825, Line 18a
    03FL3 15 Gross Farm Income Cash (±) Form 1040, Schedule F, Line 9* (dotted portion)
    *(Line 11, dotted portion for prior years)
    03FL1 15 Sale of Livestock (±) Schedule F, Line 1c

  3. Invalid Condition - Any field in Section 03 will be invalid if not all numbers.

  4. Correction procedures - Check for coding and transcription errors or misplaced entries.

Section 04 Errors

  1. This section identifies Section 04 field errors.

General Information

  1. Section 04 has monetary amounts.

  2. The entries are of variable lengths.

  3. All entries are dollars only.

  4. If any income line on the return reflects a line entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, the Special Income Code must be "1" .

Error Record Format

  1. Data in Section 04 is obtained from Form 1065. See Exhibit 3.12.15-2, Form 1065, U.S. Return of Partnership Income.

  2. The Form 1065 field designators, the title and the location on the return where the data is obtained is shown below:

    Field Designator Field Length Title Positive/Negative Location on Form 1065
    0419D 15 Mortgages, notes, bonds payable in 1 year or more (±) Form 1065, Schedule L, Line 19b, Column (d)
    04PCA 15 Partners' Capital Account Ending (±) Form 1065, Schedule M-2, Line 9

  3. Invalid Condition - Any field in Section 04 will be invalid if not all numbers.

  4. Correction procedures - Check for coding and transcription errors or misplaced entries.

Section 05 Errors

  1. This section gives instructions for correcting Section 05 error conditions.

General Information

  1. Section 05 has address information of the partnership filing Form 1065.

  2. Section 05 will be present if any the following conditions exist:

    • Has an address change.

    • Form 1065, page 1, Line G, Box "3" is checked to show an address change.

  3. This section cannot be present on a "G" Coded short length record.

  4. Section 05 can be present on other short length records.

Foreign Address -
General Information

  1. Ogden Submission Processing Center (OSPC) will process returns with Foreign/International and U.S. Possessions/Territories addresses.

  2. The determination of a Foreign Address is based only on the address of the partnership.

  3. A Foreign or international address is any address that is not in one of the 50 states or the District of Columbia.

  4. The following U.S. Possessions/Territories are considered foreign.

    • American Samoa

    • Federated States of Micronesia

    • Guam

    • Marshall Islands

    • Northern Mariana Islands

    • Palau

    • Puerto Rico

    • Virgin Islands (U.S.)

  5. 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/DPO/FPO format, convert to the new State Code abbreviation based on the ZIP Code. For example, "APO New York, NY 091XX" , would be converted to "APO AE 091XX" . Refer to the APO/DPO/FPO conversion chart below:

    If ZIP Code is Then
    340 AA
    090-098 AE
    962-966 AP

  6. All returns with a foreign or U.S. possession/territory address must be shipped to OSPC.

    1. SSPND with Action Code "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 have:

    • Street address or P.O. Box

    • City or town name

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

    • Postal Code, if present can be before or after the city, town, province, state, county, etc. name but always before the Foreign country.

    • Foreign country

  2. Returns with an address in the U.S. Possessions/Territories are considered foreign returns for processing purposes and are entered in the same way as domestic addresses.

    1. A two-character alpha code must be entered in Field 05ST for the possession/territory name.

      U.S. Position/Territory Abbreviation
      American Samoa AS
      Federated States of Micronesia FM
      Guam GU
      Marshall Islands MH
      Northern Mariana Islands MP
      Palau PW
      Puerto Rico PR
      Virgin Islands (U.S.) VI

    2. A ZIP Code must be present for U.S. Possessions/Territories. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries and Exhibit 3.12.15-3.

Error Record Format

  1. Listed below are the fields that are in Section 05. Data in this section is obtained from Form 1065: (See Exhibit 3.12.15-2, Form 1065, U.S. Return of Partnership Income).

    Field Designator Maximum Length Title Location on Form 1065
    05CON 35 "In-Care-Of" Name Entity section, Form 1065
    05FAD 35 Foreign Address Entity section, Form 1065
    05ADD 35 Street Address Entity section, Form 1065
    05CTY 22 City Entity section, Form 1065
    05ST 2 State Entity section, Form 1065
    05ZIP 12 ZIP Code Entity section, Form 1065

♦Field 05CON - "In Care Of" Name♦

  1. Description - Field 05CON is found in the entity section of the return.

  2. Valid Condition - Field 05CON has 35 positions and the valid characters are alpha, numeric, ampersand, dash, slash or percent (%).

    Note:

    The first character of the "In-Care-Of" name must be alpha or numeric.

  3. Invalid Condition - Field 05CON is invalid if any of the following conditions are present:

    • The first position is % (percent) and the second position is not blank, or

    • The first position is blank, or

    • The first character of the "In-Care-Of" name is not alpha or numeric, or

    • There are two consecutive blanks between significant characters.

  4. Correction Procedures:

    1. 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 05CON.

    A blank is in the first position,
    1. Delete blank.

    2. Enter the "In-Care-Of" name beginning with an alpha or numeric in Field 05CON.

    The first character of the "In-Care-Of" name is not alpha or numeric,
    1. Verify "In-Care-Of" name on the return.

    2. Enter the "In-Care-Of" name beginning with an alpha or numeric in Field 05CON.

    Two consecutive blanks are present between significant characters, Delete any unnecessary blanks in Field 05CON.

♦Field 05FAD - Foreign Address♦

  1. Description - Field 05FAD is in the entity section of the return.

    1. This field will have an entry when there is a foreign address present on the return.

    2. Field 05FAD should not be present on "G" coded short length records.

  2. Valid Condition - Valid characters are alpha, numeric and special characters.

  3. Invalid Conditions - Field 05FAD 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 inputs a pound sign (#) as the 35th character if there are more than 35 characters present for this field on the return.

  4. Correction Procedures:

    1. Correct all coding and transcription errors.

      If Then
      Field 05FAD is present,
      1. GTSEC 05.

      2. Ensure Field 05CTY has a Foreign Country Code and Field 05ST has a "." (period/space). 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 05CTY if the Foreign address is from Canada and the address has a province name or abbreviation. See Exhibit 3.12.15-5, Province/Country Code - Canada Only.

      A province abbreviation is not present for Australia, Brazil, Canada, Cuba, Italy, Mexico, or The Netherlands but a province name is present, Enter the province abbreviation in the proper position in Field 05FAD. See Exhibit 3.12.15-4, Province, State and Territory Abbreviations.
      A foreign address is not present on the return,
      1. SSPND with Action Code 610.

      2. Renumber return with domestic DLN.

    2. If Form 8822, Change of Address or Form 8822-B, Change of Address or Responsible Party - Business is attached to the return, compare the name and address information on the Form 8822 or Form 8822-B, to the return.

      Note:

      A business may have two addresses. One is the mailing address and the other is the location address or physical location of the business.

      If And Then
      Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, All of the following applies:
      • Mailing address information is the same,

      • No location address is on Form 8822 or Form 8822-B, Line 7,

      • No entry on Form 8822-B, Lines 8 or 9,

      Take no action and continue processing.
      Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached, Any of the following applies:
      • Mailing address information is different,

      • Location address is on Form 8822 or Form 8822-B, Line 7,

      • An entry is listed on Form 8822-B, Lines 8 or 9,

      1. Enter address shown on Form 8822 or Form 8822-B in Field 05FAD.

      2. Notate "Form 8822/8822-B detached" on tax return.

      3. Detach Form 8822 or Form 8822-B and route to Entity Control using Form 4227, Intra-SC Reject or Routing Slip, or follow local procedures.

      4. Notate on Form 4227, "CHANGE OF ADDRESS PER FORM 8822 or Form 8822-B" .

    Note:

    The lead tax examiner must batch all Form 8822 or Form 8822-B daily and hand carry to Entity Control for expedite processing.

Field 05ADD - Street Address

  1. Description - Field 05ADD is found in the entity section of the return.

    • Field 05ADD should not be present on "G" Coded short length records.

  2. Valid Condition - Valid characters are alpha, numeric, blank, dash or slash.

  3. Invalid Condition - Field 05ADD will generate as an error when any of the following conditions are present:

    • Any character is present other than alpha, numeric, blank, dash or slash.

    • 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.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

      If Then
      The first position is blank, All positions must be blank.
      Field 05ADD is present, Fields 05CTY, 05ST and 05ZIP must be present.
      Street address is in error and a valid Major City Code is present, Correct by entering the entire name of the city in Field 05CTY and the State Code in Field 05ST. (See Document 7475)
      A good address is not found, Delete address and revert to INOLE.

    2. If Form 8822 (Change of Address) or Form 8822-B (Change of Address - Business) is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822 or Form 8822-B to the return.

    Note:

    The lead tax examiner is required to batch all Form 8822 or Form 8822-B daily and hand carry to Entity Control for expedite processing.

Field 05CTY - City

  1. Description - Field 05CTY is found in the entity section of the return.

  2. Valid Condition - Valid characters are alpha and blank.

  3. Invalid Condition - Field 05CTY will generate as an error when any of the following conditions are present:

    • The first position is blank.

    • Any character is present other than blank or alpha.

    • Any character follows two consecutive blanks.

    • The Major City Code does not match any of the valid codes in the Major City Code Table.

      Note:

      Certain cities within each state are designated "Major Cities" and are assigned a special code of two alpha characters. ISRP will enter the Major City Code as appropriate. This code represents the city and state and is transcribed on the error record with no intervening blanks and no other characters in the City field either before or after the code.

    • Foreign Country Code is not valid if Field 05CTY has "XX" .

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. Determine if a Major City Code is used.

      Note:

      For a listing of Major City Codes, See Document 7475.

      If Then
      A Major City Code is used, Field 05CTY must be present.
      Field 05CTY has an error, Check to see if the Major City Code is correct.
      Field 05CTY 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 05CTY is present, Field 05ST (State) must be present.
      A Foreign Address is shown on the return, Enter appropriate Foreign Country Code in Field 05CTY (See Document 7475)

      Exception:

      Use the country code based on the province in Field 05CTY if the Foreign address is from Canada and the address has a province name or abbreviation. See Exhibit 3.12.15-5, Province/Country Code - Canada Only.

      Field 05CTY (Field 06CTY) has an incorrect Country Code or "XX" , Enter appropriate Foreign Country Code in Field 05CTY (See Document 7475).

    3. If Form 8822 (Change of Address) or Form 8822-B (Change of Address - Business) is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822 or Form 8822-B to the return.

Field 05ST - State

  1. Description - Field 05ST is found in the entity section of the return.

  2. Valid Condition - Valid characters are alpha and blank.

  3. Invalid Condition - The field is invalid if it is not in the State Code Table.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

    2. For a list of valid State Codes, See Document 7475 and Exhibit 3.12.15-3, U.S. Possessions/Territories State Abbreviations and ZIP Codes.

    3. If unable to perfect, DLSEC 05.

    4. If Form 8822 (Change of Address) or Form 8822-B (Change of Address - Business) is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822 or Form 8822-B to the return. See IRM 3.12.15.8.6.

Field 05ZIP - ZIP Code

  1. Description - Field 05ZIP is found in the entity section of the return.

  2. Valid Condition - Valid characters are number and blank.

  3. Invalid Condition - Field 05ZIP will generate as an error when any of the following conditions are present:

    • Any character is other than numbers or blank.

    • An entry is other than five or nine positions.

    • The entry is not within the range of 00401 and 99999.

    • The entry does not match the Major City Code or State Code.

  4. Correction Procedures:

    1. Correct coding and transcription errors.

      If Then
      Field 05ZIP is transcribed incorrectly, Enter the correct entry from the return. Only the first five digits are required to be entered in Field 05ZIP.
      A valid ZIP Code is not available from the return or an attachment,
      1. Determine the first 3 digits of a valid ZIP Code for the Major City. (See Document 7475 or Exhibit 3.12.15-3 for U.S. Possessions/Territories ZIP Codes).

      2. Enter "01" for the fourth and fifth digits in Field 05ZIP.

      The Major City is not listed in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries or the first three digits cannot be determined, Enter the ZIP Code in Field 05ZIP of the State shown in the address using Document 7475.

    2. If Form 8822 (Change of Address) or Form 8822-B (Change of Address - Business) is attached to the return, compare the Name Control, EIN, Address, City, State and ZIP Code information on the Form 8822 or Form 8822-B against the return.

Section 10 - Schedule D (Form 1065), Form 4797, Form 8949 and Form 8996

  1. This section gives Section 10 error conditions.

General Information

  1. Section 10 has alpha numeric characters, checkboxes, money amounts, dates and percentages.

  2. Section 10 is transcribed in dollars only with the exception of Field 1014, which is transcribed in dollars and cents.

  3. There is no math check on these fields.

Error Record Format

  1. Listed below are the fields in Section 10 from Form 1065, Schedule D, Capital Gains and Losses, Form 4797, Sales of Business Property, Form 8949, Sales and Other Dispositions of Capital Assets, and Form 8996, Qualified Opportunity Fund.

  2. The field designators, title and location where the data is obtained from is shown in the table below:

    Field Designator Field Length Field Title Positive/Negative Location
    10OID 1 Checkbox - Did the Partnership dispose of any Investment(s) in a qualified opportunity fund during this year? N/A Schedule D, above Part I
    101AD 15 Line 1a, Short Term Proceeds (Sales price) (+) Schedule D, Part I, Line 1a, Column (d)
    101AE 15 Line 1a, Short Term Cost or Other Basis (+) Schedule D, Part I, Line 1a, Column (e)
    101BD 15 Line 1b, Short Term Proceeds (Sales price) (+) Schedule D, Part I, Line 1b, Column (d)
    101BE 15 Line 1b, Short Term Cost or Other Basis (+) Schedule D, Part I, Line 1b, Column (e)
    101BG 15 Line 1b, Short Term Adjustments to Gain or Loss (±) Schedule D, Part I, Line 1b, Column (g)
    1002D 15 Line 2, Short Term Proceeds (Sales price) (+) Schedule D, Part I, Line 2, Column (d)
    1002E 15 Line 2, Short Term Cost or Other Basis (+) Schedule D, Part I, Line 2, Column (e)
    1002G 15 Line 2, Short Term Adjustments to Gain or Loss (±) Schedule D, Part I, Line 2, Column (g)
    1003D 15 Line 3, Short Term Proceeds (Sales price) (+) Schedule D, Part I, Line 3, Column (d)
    1003E 15 Line 3, Short Term Cost or Other Basis (+) Schedule D, Part I, Line 3, Column (e)
    1003G 15 Line 3, Short Term Adjustments to Gain or Loss (±) Schedule D, Part I, Line 3, Column (g)
    108AD 15 Line 8a, Long Term Proceeds (Sales price) (+) Schedule D, Part II, Line 8a, Column (d)
    108AE 15 Line 8a, Long Term Cost or Other Basis (+) Schedule D, Part II, Line 8a, Column (e)
    108BD 15 Line 8b, Long Term Proceeds (Sales price) (+) Schedule D, Part II, Line 8b, Column (d)
    108BE 15 Line 8b, Long Term Cost or Other Basis (+) Schedule D, Part II, Line 8b, Column (e)
    108BG 15 Line 8b, Long Term Adjustments to Gain or Loss (±) Schedule D, Part II, Line 8b, Column (g)
    1009D 15 Line 9 Long Term Proceeds (Sales price) (+) Schedule D, Part II, Line 9, Column (d)
    1009E 15 Line 9, Long Term Cost or Other Basis (+) Schedule D, Part II, Line 9, Column (e)
    1009G 15 Line 9, Long Term Adjustments to Gain or Loss (±) Schedule D, Part II, Line 9, Column (g)
    1010D 15 Line 10 Long Term Proceeds (Sales price) (+) Schedule D, Part II, Line 10, Column (d)
    1010E 15 Line 10, Long Term Cost or Other Basis (+) Schedule D, Part II, Line 10, Column (e)
    1010G 15 Line 10, Long Term Adjustments to Gain or Loss (±) Schedule D, Part II, Line 10, Column (g)
    10014 15 Capital Gain Distributions (+) Schedule D, Part II, Line 14
    101B 15 Gain due to partial dispositions of MACRS assets (+) Form 4797, Line 1b
    101C 15 Loss due to partial dispositions of MACRS assets (+) Form 4797, Line 1c
    101AZ 9 EIN from description of property N/A Form 8949, Part I, Line 1 Column (a), if Code "Z" in Column (f)
    101BZ 8 Date Acquired (YYYYMMDD) N/A Form 8949, Part I, Line, Column (b), if Code "Z" in Column (f)
    101GZ 15 Amount of adjustment (+) Form 8949, Part I, Line, Column (g), if Code "Z" in Column (f)
    101Z 1 Form 8949 Indicator N/A Form 8949, right margin of Part I, Line 1, Row 1, if Code "Z" in Column (f)
    101AY 9 EIN from description of property N/A Form 8949, Part I, Line 1, Column (a), if Code "Y" in Column (f)
    101CY 8 Date sold or disposed of (YYYYMMDD) N/A Form 8949, Part I, Line 1, Column (c), if Code "Y" in Column (f)
    101GY 15 Recaptured amount (+) Form 8949, Part I, Line 1, Column (g), if Code "Y" in Column (f)
    101Y 1 Form 8949 Indicator N/A Form 8949, right margin of Part I, Line 1, Row 1, if Code "Y" in Column (f)
    102AZ 9 EIN from description of property N/A Form 8949, Part II, Line 1 Column (a), if Code "Z" in Column (f)
    102BZ 8 Date Acquired (YYYYMMDD) N/A Form 8949, Part II, Line 1 Column (b), if Code "Z" in Column (f)
    102GZ 15 Amount of adjustment (+) Form 8949, Part II, Line 1 Column (g), if Code "Z" in Column (f)
    102Z 1 Form 8949 Indicator N/A Form 8949, Part II, right margin Line 1, Row 1, if Code "Z" in Column (f)
    102AY 9 EIN from description of property N/A Form 8949, Part II, Line 1 Column (a), if Code "Y" in Column (f)
    102CY 8 Date sold or disposed of (YYYYMMDD) N/A Form 8949, Part II, Line 1, Column (c), if Code "Y" in Column (f)
    102GY 15 Recaptured amount (+) Form 8949, Part II, Line 1, Column (g), if Code "Y" in Column (f)
    102Y 1 Form 8949 Indicator N/A Form 8949, right margin of Part II, Line 1, Row 1, if Code "Y" in Column (f)
    10I5 1 Checkbox N/A Form 8996, Part I, Line 5
    10Q6 1 Reserved for Future Use N/A Form 8996, Part I, Line 6
    10II6 15 Total qualified opportunity zone property held 6 months (+) Form 8996, Part II, Line 6
    10II7 15 Total assets held 6 months (+) Form 8996, Part II, Line 7
    10II9 15 Total qualified opportunity zone property held last day of year (+) Form 8996, Part II, Line 9
    1010 15 Total assets held last day of year (+) Form 8996, Part II, Line 10
    1013 3 Divide Line 12 by 2.0 (Line 13 is expressed as a decimal amount 0.00) N/A Form 8996, Part III, Line 13
    1014 15 Is Line 13 equal to or more than .90 (±) Form 8996, Part III, Line 14

Field 10OID - Qualified Opportunity Fund Investments

  1. Field 10OID - Checkbox is transcribed from Form 1065, Schedule D, above Part I.

  2. Invalid Condition - Field 10OID is invalid if:

    • Checkbox values are not 0, 1, 2 or 3

    • Field length is more than 1

    • Tax Period is before 201712

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If the tax period is before 201712, delete the field.

      If Then
      Form 1065, Schedule D checkbox is marked "Yes" , Enter "1" in Field 10OID.
      Form 1065, Schedule D checkbox is marked "No" , Enter "2" in Field 10OID.
      Both the "Yes" and "No" checkboxes are marked, Enter "3" in Field 10OID.
      Neither box is checked, Delete Field 10OID.

Field 101AD through Field 10014 - Form 1065, Schedule D

  1. Field 101AD through Field 10014 are transcribed from Form 1065, Schedule D, Parts I and II.

  2. Invalid Condition - Section 10 Field Errors will display if Field 101AD through Field 10014 are not numbers.

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

Field 101B and field 101C - Form 4797

  1. Field 101B and Field 101C must be entered it Form 4797, Lines 1a and 1b has an entry.

  2. Invalid Condition - Field 101B and Field 101C are invalid if:

    • The field is more than 15 characters

    • The field is not numbers, positive, and dollars only

    • The tax period is before 201712

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If a field is negative, delete the field.

    3. If the tax period is before 201712, delete the field.

Field 101AZ and Field 102AZ - Form 8949, EIN from Description of Property

  1. Field 101AZ and Field 102AZ must be present if Form 8949, Part I, Column (f) or Part II, Column (f) are coded with a "Z" by the taxpayer.

  2. Invalid Condition - Field 101AZ and Field 102AZ are invalid if:

    • EIN is not numbers

    • Field length is not 9 characters

    • Tax Period is before 201712

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If the tax period is before 201712, delete the field.

    If And Then
    Field 101AZ has an entry, Form 8949, Part I, Column (f) does not have a "Z" present in the same row, Delete the EIN.
    Field 101AZ has an entry, The EIN is incomplete or invalid, Delete the EIN.
    Field 102AZ has an entry, Form 8949, Part II, Column (f) does not have a "Z" present in the same row, Delete the EIN.
    Field 102AZ has an entry, The EIN is incomplete or invalid, Delete the EIN.

Field 101AY and Field 102AY - Form 8949 - EIN from Description of Property

  1. Field 101AY and Field 102AY must be present if Form 8949, Part I , Column (f) or Part II, Column (f) are coded with a "Y" by the taxpayer.

  2. Invalid Condition - Field 101AY and Field 102AY are invalid if:

    • The EIN is not numbers

    • Field length is not 9 characters

    • Tax period is before 201712

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If the tax period is before 201712, delete the field.

    If And Then
    Field 101AY has an entry, Form 8949, Part I, Column (f) does not have a "Y" present in the same row, Delete the EIN.
    Field 101AY has an entry, The EIN is incomplete or invalid, Delete the EIN.
    Field 102AY has an entry, Form 8949, Part II, Column (f) does not have a "Y" present in the same row, Delete the EIN.
    Field 102AY has an entry, The EIN is incomplete or invalid, Delete the EIN.

Field 101BZ and 102BZ - Form 8949 - Date Acquired

  1. Field 101BZ and Field 102BZ must be present if Form 8949, Part I, Column (f) or Part II, Column (f) are coded with a "Z" by the taxpayer.

  2. Invalid Condition - Field 101BZ and Field 102BZ are invalid if:

    • Field length is other than 8 characters (YYYYMMDD)

    • Date acquired is other than numbers

    • Month is zero or greater than 12

    • Day range does not match the number of days in the month

    • Tax period is before 201712

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If the tax period is before 201712, delete the field.

    If And Then
    Field 101BZ has an entry, Form 8949, Part I, Column (f) does not have a "Z" entered by the taxpayer in that same row, Delete the date.
    Field 101BZ has an entry, The date is not complete.
    For example, only the year is present,
    Delete the date.
    Field 102BZ has an entry, Form 8949, Part II, Column (f) does not have a "Z" entered by the taxpayer in that same row, Delete the date.
    Field 102BZ has an entry, The date is not complete.
    For example, only the year is present,
    Delete the date.

Field 101CY and 102CY - Form 8949 - Date Sold or Disposed of

  1. Field 101CY and Field 102CY must be present if Form 8949, Part I, Column (f) or Part II, Column (f) are coded with a "Y" by the taxpayer.

  2. Invalid Condition - Field 101CY and Field 102CY are invalid if:

    • Field is other than 8 characters (YYYYMMDD)

    • Field is other than numbers

    • Month is zero or greater than 12

    • Day range does not match the number of days in the month

    • Tax period is before 201712

  3. Correction Procedures

    1. Correct coding and transcription errors and misplaced entries.

    2. If the tax period is before 201712, delete the field.

Field 101GZ and Field 102GZ - Form 8949 - Amount of Adjustment

  1. Field 101GZ and Field 102GZ must be present if Form 8949, Part I, Column (f) or Part II, Column (f) are coded with a "Z" by the taxpayer.

  2. Invalid Condition - Field 101GZ and Field 102GZ are invalid if:

    • Field length is more than 15 characters

    • Amount is other than numbers, positive and dollars only

    • Tax period is before 201712

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If a field is negative, delete the field.

    3. If the tax period is before 201712, delete the field.

Field 101GY and Field 102GY - Form 8949 - Recaptured Amount

  1. Field 101GY and Field 102GY must be present if Form 8949, Part I, Column (f) or Part II, Column (f) are coded with a "Y" by the taxpayer.

  2. Invalid Condition - Field 101GY and Field 102GY are invalid if:

    • Field length is more than 15 characters

    • Amount is other than numbers, positive and dollars only

    • Tax period is before 201712

  3. Correction Procedures:

    1. Correct coding errors, transcription errors, and misplaced entries.

    2. If a field is negative, delete the field.

    3. If the tax period is before 201712, delete the field.

Field 101Z and Field 102Z - Form 8949 Indicator, Line 1

  1. An indicator will be entered in Field 101Z and Field 102Z when Form 8949, Part I or Part II has more than one row with a "Z" present in Column (f). C&E will edit Z - 1 in the right margin of Part I or Part II, Line 1, Row 1.

  2. Invalid Condition - Field 101Z and Field 102Z are invalid if:

    • Field length is more than 1 character

    • Indicator is other than 0 (default) or space or "1" (more than one row with a "Z" in Column (f).

    • Tax period is before 201712

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If the tax period is before 201712, delete the field.

    Figure 3.12.15-10a

    This is an Image: 33655010.gif

    Please click here for the text description of the image.

    Figure 3.12.15-10b

    This is an Image: 33655011.gif

    Please click here for the text description of the image.

Field 101Y and Field 102Y - Form 8949 Indicator

  1. An indicator will be entered in Fields 101Y and 102Y when Form 8949, Part I, has more than one row with a "Y" in Column (f) or Part II, has more than one row with a "Y" in Column (f). C&E will edit Y-1 in the right margin of Part 1, Line 1, Row 1 or Part II, Line 1, Row 1.

  2. Invalid Condition - Field 101Y and Field 102Y are invalid if:

    • Field length is more than one character

    • Field is other than "blank" (default) or zero or "1" (more than one row with a "Y" in column (f)

    • Tax period is before 201712

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If the tax period is before 201712, delete the field.

Field 10I5 - Form 8996 Checkbox, Line 5

  1. Field 10I5 Checkbox is found on Form 8996, Part I Line 5.

  2. Form 8996 is valid for tax periods ending 201712 and later, see the table below for Form 8996 revision line numbers.

    Form 8996 Revisions for Field 1015

    2021 and later 2020 2019 2018 and 2017
    Line 5 Line 5 Line 5 N/A
    Line 6 N/A N/A N/A
    Line 7 Line 7 Line 6 Line 5
    Line 8 Line 8 Line 7 Line 6
    Line 10 Line 10 Line 9 Line 8
     

  3. Invalid Condition - Field 1015 is invalid if:

    • Checkbox values are not 1, 2 or 3

    • Field length is more than 1

    • Tax period is before 201712

  4. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If the tax period is before 201712, delete the field.

      If Then
      Form 8996, Part I, Line 5 checkbox is marked "Yes" , Enter "1" in Field 1015.
      Form 8996, Part I, Line 5 checkbox is marked "No" , Enter "2" in Field 1015.
      Both the "Yes" and "No" checkboxes are marked, Enter "3" in Field 1015.
      Neither checkbox is marked, Delete Field 1015.

Field 10Q6 - Form 8996 - Reserved for Future Use

  1. Field 10Q6 - Checkbox is transcribed from Form 8996, Line 6.

  2. Invalid Condition - Field 10Q6 is invalid if:

    • The checkbox value is not "0" or "1"

    • The field length is more than 1 character

    • The tax period is before 201712

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If the tax period is before 201712, delete the field.

    If Then
    Form 8996, Line 6, box is "Yes" Enter "1" in Field 10Q6.
    Box 6 is not checked, Delete Field 10Q6.

Fields 10116, 10117, 10119 and 10110 - Form 8996, Lines 6, 7, 9 and 10

  1. Fields 10116, 10117, 10119 and 10110 are transcribed from Form 8996, Part II, Lines 6, 7, 9 and 10.

  2. Invalid Condition - Fields 10116, 10117, 10119 and 1010 are invalid if:

    • Field length is more than 15 characters

    • Fields are other than numbers, positive and dollars only

    • Tax period is before 201712

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If a field is negative, delete the field.

    3. If the tax period is before 201712, delete the field.

Field 1013 - Form 8996, Line 13

  1. Field 1013 is a percentage found on Form 8996, Part III, Line 13. It is expressed as a decimal amount (0.00).

    Note:

    The ERS screen will display 000 (the decimal is implied), for example, 50 percent will display as 050.

  2. Invalid Condition - Field 1013 is invalid if:

    • The field is not numbers.

    • Field length is more than 3 characters

    • The value exceeds 1.00

    • Tax period is before 201712

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    If Then
    Field 1013 is more than 3 characters, For example, 0.456, Enter the first 3 characters, For example enter 0.45.
    Field 1013 is greater than 1, For example, 1.456, Delete the field.
    The tax period is before 201712, Delete the field.

Field 1014 - Form 8996, Line 15

  1. Field 1014 is found on Form 8996, Part III, Line 15.

    Form 8996 Revisions for Field 1014

    Prior Year Revision Line
    2020 Part III, Line 15
    2019 Part III, Line 14
    2018 and 2017 Part III, Line 13
  2. Invalid Condition - Field 1014 is invalid if:

    • Field length is more than 15 characters

    • Field is not numbers, positive and entered as dollars and cents

    • Tax period is before 201712

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If a field is negative, delete the field.

    3. If the tax period is before 201712, delete the field.

Section 20 Errors - Reserved for future use

  1. This section identifies Section 20 field errors.

Error Record Format

  1. Data in Section 20 was obtained from Form 8913 (Credit for Federal Telephone Excise Tax Paid).

  2. The field designators, title and location on the return where the data is obtained is shown below:

    Field Designator Field Length Title Positive/Negative Location on Form 8913
    20TTR - Reserved for future use 15 Telephone Excise Tax Paid (+) Line 15(d)
    20TTI - Reserved for future use 15 Telephone Excise Tax Interest (+) Line 15(e)

Section 21 Errors -
Small Employer Health Insurance Premiums (Form 8941)

  1. This section identifies Section 21 field errors.

General Information

  1. Section 21 has money amounts.

  2. Dollar and cent fields should be dollars only, and positive only.

    Note:

    Field 21LN1, 2102, 2113, and 2114 should be 4 numbers.

  3. Valid characters are numbers and blank only.

  4. Any entry on Line 2 with a decimal point will be rounded down, e.g., 8.5 would be 8.

  5. The credit is not valid for any tax period before 201012.

Error Record Format

  1. Section 21 data is obtained from Form 8941, Credit for Small Employer Health Insurance Premiums.

  2. This section is not required.

  3. All fields in Section 21 are numbers and are transcribed as dollars only.

  4. All fields in Section 21 must be positive.

  5. Fields 21CBX and 21BXC cannot be blank, the default is zero for no boxes checked.

  6. Field 21LN1 cannot be all zeros.

  7. The field designators, title and location on the return where the data is obtained is shown below:

    Field Designator Field Length Title Positive/Negative Location on Form 8941
    21CBX 1 SHOP checkbox indicator (+) Box A
    21LNB 9 EIN Employment report (+) Box B
    21BXC 1 Previous Forms 8941 Filed (+) Box C
    21LN1 4 Number of Full Time Employees (+) Line 1
    2102 4 Number of Full time Employees (+) Line 2
    2103 15 Average Annual Wages (+) Line 3
    2104 15 Health Insurance Premiums Paid (+) Line 4
    2105 15 Premiums You Would Have Paid (+) Line 5
    2110 15 Premium Subsidies Paid (+) Line 10
    2113 4 Number of Employees With Premiums Paid Under Qualified Arrangement (+) Line 13
    2114 4 Number of Full Time Employees With Premiums Paid Under Qualified Arrangement (+) Line 14
    2115 15 Credit for Small Employer Health Insurance Premiums from Partnerships, S Corporations, Estates, and Trusts (+) Line 15
    2116 15 Sum of Lines 12 and 15 (+) Line 16

  8. Invalid Conditions - Any field in Section 21 will be invalid if not all numbers or a dollar amount.

  9. Correction Procedures - Correct all misplaced entries, coding errors, and transcription errors.

Section 22 Errors - New Hire Retention Credit (Form 5884-B)

  1. Form 5884-B, New Hire Retention Credit, is used to figure the new hire retention credit for retained workers. This credit was enacted as part of the Hiring Incentives to Restore Employment (HIRE) Act on March 18, 2010. While the credit expired December 31, 2011, it is possible for Form 5884-B to be attached to Form 1065 (with Lines 12 and 13 completed) if the partnership claimed the credit on their year 2011 K-1 for a fiscal filed year.

General Instructions

  1. Section 22 has numbers and money amounts.

  2. All fields should be dollars only, and positive only.

Error Record Format

  1. Section 22 data is obtained from Form 5884-B, New Hire Retention Credit.

  2. The field designators, title and location on the return where the data is obtained is shown below:

    Field Designator Field Length Title Positive/Negative Location on Form 5884-B
    2210 15 Total of Line 9, columns (a) through (c) (+) Line 10
    2211 7 Number of retained workers for whom receiving credit (+) Line 11

  3. Invalid Conditions - Any field in Section 22 will be invalid if not all numbers.

  4. Correction Procedures - Correct all misplaced entries, coding errors, and transcription errors.

Section 26 - Form 8997 - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments

  1. This section has instructions for correcting Section 26 Field Errors.

  2. If tax period is before 201901 delete any fields in Section 26.

Section 26 Field Errors

  1. Section 26 has information reported on Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments.

    Field Designator Field Length Field Title Location on Form 8997 Dollars/Cents Pos/Neg
    261A 9 EIN Part I, Row 1, Column a    
    261B 8 Date Part I, Row 1, Column b    
    261D 1 Special Gain Code Part I, Row 1, Column d    
    261E 15 $ Amount Part I, Row 1, Column e $ only +
    261F 15 $ Amount Part I, Row 1, Column f $ only +
    261IN 1 Indicator Edited right margin, Part I, Row 1    
    2612E 15 $ Amount Part I, Line 2, Column e (Column e total) $ only +
    2612F 15 $ Amount Part I, Line 2, Column f (Column f total) $ only +
    262A 9 EIN Part II, Row 1, Column a    
    262B 8 Date Part II, Row 1, Column b    
    262D 1 Special Gain Code Part II, Row 1, Column d    
    262E 15 $ Amount Part II, Row 1, Column e $ only +
    262F 15 $ Amount Part II, Row 1, Column f $ only +
    262IN 1 Indicator Edited right margin, Part II, Row 1    
    2622E 15 $ Amount Part II, Line 2, Column e (Column e total) $ only +
    2622F 15 $ Amount Part II, Line 2, Column f (Column f total) $ only +
    263A 9 EIN Part III, Row 1, Column a    
    263B 8 Date Part III, Row 1, Column b    
    263D 1 Special Gain Code Part III, Row 1, Column d    
    263E 15 $ Amount Part III, Row 1, Column e $ only +
    263F 15 $ Amount Part III, Row 1, Column f $ only +
    263IN 1 Indicator Edited right margin, Part III, Row 1    
    2632E 15 $ Amount Part III, Line 2, Column e (Column e total) $ only +
    2632F 15 $ Amount Part III, Line 2, Column f (Column f total) $ only +
    264A 9 EIN Part IV, Row 1, Column a    
    264B 8 Date Part IV, Row 1, Column b    
    264D 1 Special Gain Code Part IV, Row 1, Column d    
    264E 15 $ Amount Part IV, Row 1, Column e $ only +
    264F 15 $ Amount Part IV, Row 1, Column f $ only +
    264IN 1 Indicator Edited right margin, Part IV, Row 1    
    2642E 15 $ Amount Part IV, Line 2, Column e (Column e total) $ only +
    2642F 15 $ Amount Part IV, Line 2, Column f (Column f total) $ only +

Fields 261A, 262A, 263A and 264A

  1. Fields 261A, 262A, 263A and 264A - Form 8997 - EIN.

  2. Invalid Condition - Fields 261A, 262A, 263A and 264A are invalid if:

    • The field is more than 9 characters

    • The field is not numbers

    • The tax period is before 201901

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If the tax period is before 201901, delete the field.

Fields 261B, 262B, 263B and 264B

  1. Fields 261B, 262B, 263B and 264B - Form 8997 - Date.

  2. Invalid Condition - Fields 261B, 262B, 263B and 264B are invalid if:

    • The field is not 8 characters (YYYYMMDD)

    • The field is not numbers

    • The months is zero or more than 12

    • The day range does not match the number of days in the month

    • The tax period is before 201901

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. if the tax period is before 201901, delete the field.

Fields 261D, 262D, 263D and 264D

  1. Fields 261D, 262D, 263D and 264D - Form 8997 - Special Gain Code

  2. Invalid Condition - Fields 261D, 262D, 263D and 264D are invalid if:

    • The field is more than 1 character

    • The field is not A, B, C, D, E or F

    • The tax period is before 201901

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If the tax period is before 201901, delete the field.

Fields 261IN, 262IN, 263IN and 264IN

  1. If an of Parts I, II, III or IV have more than one row of tax data, an indicator will be entered in Fields 261IN (Part I), 262IN (Part II), 263IN (Part III) and 264IN (Part IV).

  2. Invalid Condition - Fields 261IN, 262IN, 263IN and 264IN are invalid if:

    • The field is more than 1 character

    • The field is not "blank" , "0" , or "1" (more than one row with data present)

    • The tax period is before 201901

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If the tax period is before 201901, delete the field.

All other Fields in Section 26

  1. Money Amount fields - Form 8997

  2. Invalid Condition - Money amount fields can only be positive and are invalid if:

    • The field is more than 15 characters

    • The field is not dollars only

    • The tax period is before 201901

  3. Correction Procedures:

    1. Correct coding and transcription errors and misplaced entries.

    2. If the tax period is before 201901, delete the field.

Section 29 - Form 6252 - Installment Sale Income

  1. Section 29 has information reported on Form 6252, Installment Sale Income.

  2. Section 29 is not required.

  3. Section 29 is valid for Tax Periods ending 201712 and later.

  4. Valid fields are listed below:

    Field Designator Field Length Title Location on Form 6252
    2901 1 Description of Property Indicator Line 1
    2902A 8 Date Acquired (YYYYMMDD) Line 2a
    2902B 8 Date Sold Line 2b
    2907 15 Subtract Line 6 from Line 5 (Net Property Selling Price) Part I, Line 7
    2919 5 Gross Profit percentage (expressed as a decimal amount) 0.0000 Part II, Line 19
    2921 15 Payments received during year Part II, Line 21
    2923 15 Payments received in prior years Part II, Line 23

Field 2901 - Description of Property

  1. Field 2901 is found on Form 6252, Line 1.

  2. Invalid Condition - Field 2901 is invalid if:

    • The field is more than 1 character

    • The field is other than "0" , "1" , "2" , "3" , or "4"

    • The tax period is before 201712

  3. Correction Procedures:

    1. Correct coding, transcription, and misplaced entries.

    2. If the tax period is before 201712, delete the field.

      If Then
      "Timeshares or residential lots" is shown on Form 6252, Line 1 Enter "1" in Field 2901.
      "Sale by an individual of personal use property (within the meaning of Section 1275(b)(3)" is shown on Form 6252, Line 1 Enter "2" in Field 2901.
      "Sale of any property used or produced in the trade or business of farming (within the meaning of Section 2032A(e)(4) or (5))" is shown on Form 6252, Line 1 Enter "3" in Field 2901.
      "Other" is shown on Form 6252, Line 1 Enter "4" in Field 2901.
      No description is given Delete Field 2901.

Fields 2902A and 2902B - Date Acquired and Date Sold

  1. Fields 2902A and 2902B are found on Form 6252, Line 2a and 2b.

  2. Invalid Condition - Fields 2902A and 2902B are invalid if:

    • The field is other than 8 characters

    • The field is not numbers

    • The month is zero or greater than 12

    • The day range does not match the number of days in the month

    • The tax period is before 201712

  3. Correction Procedures:

    1. Correct coding, transcription, and misplaced entries.

    2. If the tax period is before 201712, delete the field.

Fields 2907, 2921, and 2923 - Net Property Payments received during year and Payments received in prior years

  1. Fields 2907, 2921, and 2923 are transcribed from Form 6252, Part I, Line 7, Part II, Line 21, and Part II, Line 23.

  2. Invalid Condition - Fields 2907, 2921, and 2923 are invalid if:

    • The field is more than 15 characters

    • The field is not numbers, positive, or entered in dollars and cents

    • The tax period is before 201712

  3. Correction Procedures:

    1. Correct coding, transcription, and misplaced entries.

    2. If the tax period is before 201712, delete the field.

Field 2919 - Gross profit percentage

  1. Field 2919 is transcribed from Form 6252, Part II, Line 19. The gross profit percentage is expressed as a decimal (0.0000).

    Note:

    The ERS screen will display 00000 (the decimal is implied), for example, 50 percent will display as 05000.

  2. Invalid Condition - Field 2919 is invalid if:

    • The field is more than 5 characters

    • The field is not numbers

    • The value exceeds 1.0000

    • The tax period is before 201712

  3. Correction Procedures:

    1. Correct coding, transcription and misplaced entries.

    2. If the tax period is before 201712, delete the field.

Priority IV Errors - Error Codes 001 through 999

  1. This section gives detailed error correction procedures for Error Codes 001 through 999. These errors will be displayed with the 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.

♦Error Code 001 - Tax Year - Invalid Entry♦

  1. Fields Displayed

    Field Designator Field Name Length
    01TXP Tax Period 6
    01RCD Received Date 8
    01CCC Computer Condition Code 10

  2. Invalid Condition - Error Code 001 will generate when any of the following conditions are present:

    1. Computer Condition Code "G" is Not Present -The processing date is equal to or more than two years and 10 months after the Return Due Date or the Received Date (whichever is later) and Computer Condition Code "W" is not present.

    2. Computer Condition Code "G" is Present -The processing date is equal to or more than 2 years and 10 months after the Return Due Date and Computer Condition Code "W" is not present.

    3. "G" Coded and Non- "G" Coded Returns - The processing date is less than two years after the Return Due Date and Computer Condition Code "W" is present.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding and transcription errors.

    2. Do not send the returns in the following table to Statute Control for clearance. Instead, do the following:

      Statute Control

      If Then
      • Return is prepared by Compliance (e.g., IRC 6020(b)),

      • Return is secured by Examination/Collections, secured by TE/GE, secured by TE/GE Employee Plan (EP) Exam,

      • Return has a Transaction Code (TC) 59X,

      • Return has "ICS" (Integrated Collection System) notated on the face of the return,

      • Return is a Substitute for Return prepared by Examination ("SFR" in the margin) with Form 13133, Expedite Processing Cycle, attached,

      • Return has a stamp indicating a previous clearance by Statute Control within the last 90 days,

      Enter "W" in Field 01CCC and on the return and continue processing.
       

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

    Error Code 001 Correction Procedures

    If Then
    Field 01RCD is blank,
    1. Enter the Received Date in Field 01RCD. Use the earliest date if multiple Received Dates are present.

    2. See IRM 3.12.15.4.6 to determine the Received Date.

    CCC "W" entered incorrectly, Delete CCC "W" from Field 01CCC.
    The return has a stamp that shows a previous clearance by Statute Control within the last 90 days, Enter CCC "W" in Field 01CCC and on the return.

    Note:

    Do not send the return to Statute Control.

    The return Received Date is two years and nine months or more after the Return Due Date and the return is stamped, "No Statute Issue, " "Statute N/A," or a similar statement indicating there is no statute issue. Enter CCC "W" in Field 01CCC and on the return.

    Note:

    Do not send the return to Statute Control.

    The return is not stamped by Statute Control within the last 90 days,
    1. Suspend (SSPND) with Action Code 310.

    2. Prepare Form 4227, Intra-SC Reject or Routing Slip, to route to Statute Control.

     

  4. Suspense Correction

    1. When Statute Control returns the cleared document, enter "W" in Field 01CCC and on the return. Continue processing.

    2. Statute Control requests a voided record, SSPND with Action Code 640.

♦Error Code 002 - Name Control Mismatch♦

  1. Fields Displayed

    Field Designator on Form 1065 Field Name Length
    CL Clear Code 1
    01NC Name Control/Check Digit 4
    >>>> Name Control Underprint 4
    01EIN Employer Identification Number 9
    01TXP Tax Period 6
    05CON "In-Care-Of" Name 35
    05FAD Foreign Address 35
    05ADD Street Address 35
    05CTY City 22
    05ST State 2
    05ZIP ZIP Code 12

  2. Invalid Condition - Error Code 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 steps to resolve Error Code 002, drop the cursor to the bottom of the screen and transmit. This ensures any prior changes to the Name Control have posted to the NAP. If Error Code 002 reappears, continue with the remainder of the correction procedures.

      Note:

      When corrections are made to Field 01EIN, the computer will validate the entries with the NAP and reset the On-Line Entity (OLE) indicators correctly upon transmitting the ERS screen.

    2. Correct all misplaced entries, coding and transcription errors.

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

    4. Refer to all the following research instructions in this error code before taking any action.

    5. 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 NAMEB/NAMEE for a new EIN.

    6. If a new EIN is found, verify the Name Control using IDRS Command Code (CC) INOLES.

      If Then
      The Name Control on INOLES matches the Name on the return or attachment,
      1. Ensure the entity information matches the return.

      2. Overlay Field 01EIN with the new EIN from NAMEB/NAMEE. Enter the new EIN on the return. When the EIN is changed from the one the taxpayer used, issue Letter 3875C, Missing or Incorrect EIN on Return, as a non-suspense letter to the address on the return. Ensure the entity information matches the return.

        Note:

        Do not send Letter 3875C when:
        • Three or less digits of the EIN are transposed, different or missing, or
        • The EIN is consecutive numbers (e.g., 12-3456789) or repeating numbers (e.g., 11-1111111), or
        • INOLES shows the account has been "merged to" or "merged from" , or
        •The TIN on the return is the taxpayer's SSN (check CC INOLEG)

      Multiple EINs are found,
      1. SSPND with Action Code 320 to Entity Control.

      2. Prepare Form 4227, Intra-SC Reject or Routing Slip, with the notation "MULTIPLE EINs" .

      INOLES shows 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 and on the return.

      Note:

      Do not send Letter 3875C on MT EIN cases.

      The "MT" EIN does not match the entity on the return or attachment, SSPND with Action Code 320 to Entity Control.

    7. 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 1065 (Line G, Box (3)), 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 with Action Code 320 to route the return to Entity Control.

      2. Attach Form 4227, Intra-SC Reject or Routing Slip, with the notation "NO RECORD" .

    8. If the Name change has not been made, research IDRS using Command Code 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 with Action Code 320 to route to Entity Control.

      2. Attach Form 4227, Intra-SC Reject or Routing Slip, with the notation "REQUEST NAME CHANGE (TC 013)" .

    9. The Name Control for EINs with the prefix 20, 26, 27, 45, 46, 47, 81, or 82 will be the first four characters of the Primary Name line. These EINs were assigned by the Modernized Internet EIN (MODI-EIN) application for partnerships at www.irs.gov.

  4. Suspense Correction

    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 IRS 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 IRS 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 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 correctly,
      1. Enter the correct EIN in Field 01EIN and on the return.

      2. Enter "C" in the Clear Code field.

      Payment cannot be found, 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 Command Code NAMEB/NAMEE for correct EIN.

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

    If Then
    The EIN on Form 1065 matches the EIN on CCNAMEB/NAMEE, Enter Name Control from CC NAMEB/NAMEE in Field 01NC.
    Research shows a different EIN, Verify the EIN and name on CC INOLES.
    Name Control on CC INOLES matches the name on the return or attachment,
    1. Overlay Field 01EIN with the EIN from CC INOLES. Enter the new EIN on the return.

    2. Issue Letter 3875C, Missing or Incorrect EIN on Return, as a non-suspense letter to the address on the return.

      Note:

      Do not send Letter 3875Cwhen:
      • Three or less digits of the EIN are transposed, different, or missing, or
      • The EIN is consecutive numbers (e.g., 12-3456789) or repeating numbers (e.g., 11-1111111), or
      • CC INOLES shows the account has been "merged to" or "merged from" , or
      • The TIN on the return is the taxpayer's SSN (check CC INOLEG).

    Unable to find an EIN or more than one EIN is found,
    1. SSPND with Action Code "320" to Entity Control.

    2. Prepare Form 4227, Intra-SC Reject or Routing Slip, 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 can’t be found, Enter "C" in the Clear Code field.

♦Error Code 004 - Name Control/EIN Validation♦

  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 Condition - Error Code 004 will generate when any of the following conditions are present:

    • The EIN is not present at Master File (MF)

    • The Entity Index File (EIF) and the National Account Profile (NAP) were not accessed or were not operational, causing a blank underprint in Field 01NC

    Note:

    An underprint of "XXXX" shows that there is no account on the Master File, while a blank underprint shows that the NAP has not been accessed or was not operational.

  3. Correction Procedures:

    1. Before taking any more research steps to resolve Error Code 004, drop the cursor to the bottom of the screen and transmit. This ensures 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.

      Note:

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

    2. Correct all misplaced entries, coding and transcription errors.

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

    4. Refer to all the following research instructions in this error code before taking any action.

    5. 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 (CC) INOLES to determine the correct Name Control:

      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 CC NAMEB/NAMEE for a new EIN.

    6. If a new EIN is found, verify the Name Control using IDRS CC INOLES:

      If Then
      The Name Control on INOLES agrees with the Name on the return or attachment,
      1. Ensure the entity information matches the return.

      2. Overlay Field 01EIN with the new EIN from NAMEB/NAMEE. Enter the new EIN on the return. When the EIN is changed from the one the taxpayer used, issue Letter 3875C, Missing or Incorrect EIN on Return, 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
        • The EIN is consecutive numbers (e.g., 12-3456789) or repeating numbers (e.g., 11-1111111), or
        • INOLES shows the account has been merged to or merged from, or
        • The TIN on the return is the taxpayer’s SSN (check CC INOLEG).

      Multiple EINs are found,
      1. SSPND with Action Code 320 to Entity Control.

      2. Prepare Form 4227, Intra-SC Reject or Routing Slip, with the notation "MULTIPLE EINs" .

      INOLES shows 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 and on the return.
      The MT EIN does not match the entity on the return or attachment, SSPND with Action Code 320 to Entity Control.

    7. 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 1065 (Line G, Box (3)), research ENMOD for a 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 with Action Code 320 to route the return to Entity Control.

      2. Attach Form 4227, Intra-SC Reject or Routing Slip, with the notation "NO RECORD" .

    8. If the Name change has not been made, research IDRS using CC 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 with Action Code "320" to route to Entity Control.

      2. Attach Form 4227, Intra-SC Reject or Routing Slip, with the notation "REQUEST NAME CHANGE" .

  4. Suspense Correction:

    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 IRS 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 IRS 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 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 correctly,
      1. Enter the correct EIN in Field 01EIN and on the return.

      2. Enter "C" in the Clear Code field.

      Payment can’t be found, 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. Compare the displayed fields with the return and correct all misplaced entries, coding and transcription errors.

    2. If displayed fields are correct and the return is timely filed, enter a "C" in the Clear Code field.

    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 before 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 (USPS), Foreign or Private Delivery Service (PDSS)).

      Note:

      Use the postmark date stamped on the face of the return, if envelope is not attached.

    • 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 shows signature date is invalid).

    • Julian Date of the Document Locator Number (DLN) minus 10 days.

    • Current date minus 10 days.

  4. If a return is faxed to another service area and then sent to Submission 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:

    Do not use the EEFax Date as the IRS Received Date.

Error Code 006 - Remittance Without Received Date

  1. Fields Displayed

    Field Designator Field Name Length
    RMIT> Remittance Amount 15
    01TXP Tax Period 6
    01RCD Received Date 8

  2. Invalid Condition - Error Code 006 - Remittance is received with the return but a 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. If the Received Date is missing or illegible, determine the date as follows:
      1. IRS date stamp.
      2. Legible U.S. Post Office postmark date or foreign postmark or an acceptable designated private delivery service. See IRM 3.10.72, Receiving, Extracting, and Sorting, for further details.

      Note:

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


      3. Service Center Automated Mail Processing System (SCAMPS) digital date.
      4. Signature (Use a signature date only for the current year return; if it is a prior year return use the DLN Julian date).
      5. DLN Julian Date minus ten days. (MeF Form 1065 use the Julian date).
      6. Current date minus ten days.

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ from the Return Due Date (RDD), despite Saturday, Sunday or Holiday extension dates.

    5. If both U.S. Postal Service and private meter postmarks are present, honor the U.S. Postal Service postmark.

      Note:

      Do not consider private metered mail dates as postmark dates unless there is a "PO" or "US PO" in the date circle.

♦Error Code 007- Received Date Earlier Than Tax Year♦

  1. Fields Displayed

    Field Designator Field Name Length
    01TXP Tax Period 6
    01RCD Received Date 8
    01CCC Computer Condition Code 10

  2. Invalid Condition - Error Code 007 will generate when the Received Date is earlier than the first day of the Tax Period/Year by two months or more.

  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 And Then
    The Received Date is invalid and it appears that the incorrect year was used (i.e., 20220115 instead of 20230115), and other information (Julian date, postmark date, or signature date) shows that 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. Change the Tax Period to agree with the month before the Received Date and enter in Field 01TXP.

    2. Enter "F" in Field 01CCC.

    The return is not an early filed Final return, The Tax Period ending date is passed,
    1. Change the Received Date to one day after the tax period ending date. For example, the tax period is 202208, enter 20220801 in Field 01RCD.

    2. See IRM 3.12.15.2.18 Working Trail, for more information.

    The return is not an early filed "Final" return, The Tax Period ending is less than four months after the Received Date,
    1. SSPND with Action Code 480.

    2. Prepare Form 4227, Intra-SC Reject or Routing Slip, with the notation "EARLY FILED" .

    The return is not an early filed "Final" return, The Tax Period ending is more than four months after the Received Date,
    1. Initiate correspondence for clarification of the Tax Period.

    2. SSPND with Action Code 211.

  4. Suspense Correction

    If Then
    The taxpayer replies that the return is a "Final" ,
    1. Change the Tax Period to agree with the month before the Received Date and enter in Field 01TXP.

    2. Enter "F" in Field 01CCC.

    The taxpayer replies that the return is not a "Final" return, SSPND with Action Code 480 until the end of the tax period given by the taxpayer.
    The taxpayer fails to reply or the reply is not adequate,
    1. Enter "3" in Field 01CCC.

    2. SSPND with Action Code 480 until the end of the tax period shown on the return.

Error Code 008 - Tax Period Beginning Missing

  1. Fields Displayed

    Field Designator Field Name Length
    01TXB Tax Period Beginning 8
    01TXP Tax Period 6
    01CCC Computer Condition Code 10

  2. Invalid Condition - Error Code 008 will generate for the following conditions:

    • Tax Period Beginning is not present with a CCC "Y" or "F" ,

    • Tax Period Beginning is after the Tax Period Ending, or

    • Tax Period Beginning is earlier than 12 months before Tax Period Ending.

  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.

      Note:

      If the tax period is for a 52 - 53 week filer, adjust the tax period beginning date to one year prior to the end of the tax period.

    If And Then
    The return is a "Final " or "Short Period" , Tax Period Beginning is present on return, Enter Tax Period Beginning in YYYYMMDD format.
    The return is a "Final" or a "Short Period" , The day is not present in the Tax Period Beginning, Enter "01" for the day.
    The return is a "Final " or a "Short Period" , Tax Period Beginning is not present, Determine a Tax Period Beginning date from the ending Tax Period.
    The return is an" Initial " Short Period, Tax Period Beginning is not present, Use the "Date Business Started" from the face of the Form 1065 entered in Box E.
    The return is not a "Final " or "Short Period" ,   Remove CCC "Y" or "F" from field display.

♦Error Code 010 - Amended Return G Coded♦

  1. Fields Displayed

    Field Designator Field Name Length
    01NC Name Control 4
    01EIN Employer Identification Number 9
    01TXP Tax Period 6
    01RCD Received Date 8
    01CCC Computer Condition Code 10
    01TXB Tax Period Beginning 8
    01NAI NAICS Code 6
    01DOB Date Business Started 6
    01IRC Initial Return Code (Form 1065 ) 1
    01TT Technical Termination Code (Form 1065 ) 1
    01AMC Accounting Method Code 1
    01NOP Number of Partners 6
    01M3 Schedule - M3 1
    01LPC Limited Partnership Code 1
    01DPC Dual Partner Code 1
    01FDC Foreign/Domestic Corporation Code (Form 1065) 1
    01INE Individual/Estate Ownership Code (Form 1065) 1
    01PCS Ownership of Foreign or Domestic Corporation Code (Form 1065) 1
    01DPT Ownership of Foreign Partnership or Trust Code (Form 1065) 1
    01PTT Partnership Level Tax Treatment Election Code (Form 1065) 1
    01DPA Distribution of Property Code (Form 1065) 1
    01DRE Number of Form 8858 Attached (Form 1065) 6
    01FPI Number of Form 8805 Attached (Form 1065) 6
    01FPC Foreign Partner Code 1
    01IR1 Number of Form 8805 Attached 6
    01NFC Number of Form 5471 Attached 3
    01ELC Partnership Audit Election Code 1
    01SK1 Total Number of Schedules K-1, from Schedule B-2, part III, line 3 3
    01CRT Qualified Opportunity Fund Code 1
    01QOF Qualified Opportunity Fund Amount 15
    01ADC Audit Code 3
    01SIC Special Income Code 1
    01CRD Correspondence Received Date 8
    01ISI Installment Sales Indicator 1
    01NRL Nonrecourse Loan Code 1
    01MSC Missing Schedule Code 2
    01HSC Historic Structure Code 1
    01SWC Salary and Wage Code 1
    01EP EPMF Code 1
    01PSN Preparer PTIN 9
    01PEN Preparer Employer Identification Number 9
    01CBI Paid Preparer Checkbox Indicator 1
    01PTN Paid Preparer Telephone Number 10
    01RP1 Return Processing Code (RPC) 20
    01RP2 Overflow for RPCs 15
    Section 02    
    Section 03    
    Section 04    
    Section 05    
    Section 06 (Form 1065-B - obsolete)  
    Section 10 Form 1065, Schedule D  
    Section 21 Form 8941  
    Section 22 Form 5884-B  
    Section 26 Form 8997  
    Section 29 Form 6252  

  2. Invalid Condition - Error Code 010 will generate when Computer Condition Code (CCC) "G" is present and fields other than 01NC, 01EIN, 01TXP, 01RCD, 01CCC and 01CRD have entries.

  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 shows amended, revised, supplemental, corrected or superseding, Research the applicable Command Code(s), such as BRTVU, BMFOL, SUMRY, and TXMOD to determine if information is the same as a 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 01, if necessary.

    All information is the same, SSPND with Action Code 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 ("G" coded in error),
    1. Enter all data in Sections 02 through 05 as needed.

    2. Ensure the Section 01 fields are correct.

    3. Delete the "G" code in Field 01CCC.

    Note:

    When deleting CCC "G" and the sections required are shown as being present, no further verification of section entries is needed.

Error Code 012 - Short Record (Invalid Fields)

  1. Fields Displayed

    Note:

    This Error Code will generate on Form 1065.

    Field Designator Field Name Length
    01NC Name Control 4
    01EIN Employer Identification Number 9
    01TXP Tax Period 6
    01RCD Received Date 8
    01CCC Computer Condition Code 10
    01TXB Tax Period Beginning 8
    01NAI NAICS Code 6
    01DOB Date Business Started 6
    01IRC Initial Return Code 1
    01TT Technical Termination Code 1
    01AMC Accounting Method Code 1
    01NOP Number of Partners 6
    01M3 Schedule M-3 1
    01LPC Limited Partnership Code 1
    01DPC Dual Partner Code 1
    01MPC Multi Partner Code 1
    01FDC Foreign/Domestic Corporation Code 1
    01INE Individual/Estate Ownership Code 1
    01PCS Ownership of Foreign or Domestic Corporation Code 1
    01DPT Ownership of Foreign Partnership or Trust Code 1
    01PTT Partnership Level Tax Treatment Election Code 1
    01DPA Distribution of Property Code 1
    01DRE Number of Form 8858 Attached 6
    01FPI Number of Form 8805 Attached 6
    01FPC Foreign Partner Code 1
    01IR1 Number of Form 8865 Attached 6
    01NFC Number of Form 5471 Attached 3
    01ELC Partnership Audit Election Code 1
    01SK1 Total Number of Schedules K-1, from Schedule B-2, part III, line 3 3
    01CRT Qualified Opportunity Fund Code 1
    01QOF Qualified Opportunity Fund Amount 15
    01ADC Audit Code 3
    01SIC Special Income Code 1
    01CRD Correspondence Received Date 8
    01ISI Installment Sales Indicator 1
    01NRL Nonrecourse Loan Code 1
    01MSC Missing Schedule Code 2
    01HSC Historic Structure Code 1
    01SWC Salary and Wage Code 1
    01EP EPMF Code 1
    01PSN Preparer Social Security Number 9
    01PEN Preparer Employer Identification Number 9
    01CBI Paid Preparer Checkbox Indicator 1
    01PTN Paid Preparer Telephone Number 10
    01RP1 Return Processing Code (RPC) 20
    01RP2 Overflow for RPCs 15
    Section 02    
    Section 03    
    Section 04    
    Section 05    
    Section 21    
    Section 22    
    Section 26 Form 8997  
    Section 29 Form 6252  

  2. Invalid Condition - Error Code 012 will generate when one of the following conditions is present:

    • Computer Condition Code "5" or "8" is present and fields other than 01NC, 01EIN, 01TXP, 01RCD, 01NOP, 01CCC and 01CRD have entries.

    • Computer Condition Code "6" is present and fields other than 01NC, 01EIN, 01TXP, 01RCD, 01NOP, 01CCC, 01ADC and 01CRD have entries.

  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 "5" , "6" or "8" was input correctly. See IRM 3.12.15.4.7, Computer Condition Codes, for further information.

    If Then
    CCC "5" , "6" or "8" was input correctly,
    1. DLSEC to delete all sections except Section 01.

    2. GTSEC 01 and delete the invalid entries that are present in Section 01.

    CCC "5" , "6" or "8" was input incorrectly,
    1. Determine from Form 1065 if any fields are required in Section 02 through 08. If required, GTSEC and enter the required data.

    2. Ensure that the Section 01 fields are correct.

    3. Delete the "5" , "6" or "8" code in Field 01CCC.

♦Error Code 014 - Missing Address Entries♦

  1. Fields Displayed

    Field Designator on Form 1065 Field Name Length
    05CON "In-Care-Of" Name 35
    05FAD Foreign Address 35
    05ADD Street Address 35
    05CTY City 22
    05ST State 2
    05ZIP ZIP Code 12

  2. Invalid Condition - Error Code 014 generates when any of the following conditions are present:

    • A Major City Code is not used, the street address is present, and Field 05CTY or Field 05ST is not present.

    • A Major city Code is used and Field 05ADD is not present

    • A Major City Code is used and Field 05ST 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, or CCs INOLES, NAMEB/NAMEE, ENMOD.

    If And Then
    A Major City Code is present, A street address is not available,
    1. Enter the City Name (spelled out, not in Major City format) in Field 05CTY.

    2. Enter the State Code in Field 05ST.

    The Major City Code is correct, The state is present, Delete Field 05ST.
    The ZIP Code or Address can’t be corrected from the information on the return, attachments or from research,   DLSEC Section 05.

♦Error Code 015 - Foreign Address/State♦

  1. Fields Displayed

    Field Designator on Form 1065 Field Name Length
    05CON "In-Care-Of" Name 35
    05FAD Foreign Address 35
    05ADD Street Address 35
    05CTY City 22
    05ST State 2
    05ZIP ZIP Code 12

  2. Invalid Condition - Error Code 015 will generate when any of the following conditions are present:

    • Field 05ST has an entry other than "." (period/space) when Field 05FAD is present.

    • Field 05ZIP has an entry when Field 05FAD 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 05FAD,
    1. Field 05ST must have "." (period/space)

    2. Delete any entry in Field 05ZIP.

    A foreign address is not present in Field 05FAD, Check return for foreign address.
    A foreign address is present on the return,
    1. Enter the foreign address in Field 05FAD.

      Note:

      If more space is required, continue entering the address in Field 05ADD

    2. Field 05CTY must have the correct Foreign Country Code. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries).

    3. Field 05ST must have "." (period/space).

    4. Delete any entry in Field 05ZIP.

    A foreign address is not present on the return,
    1. Verify the address on the return is not a foreign address.

    2. SSPND with Action Code 610.

    3. Renumber return with domestic DLN.

♦Error Code 016 - ZIP Code/State Mismatch♦

  1. Fields Displayed

    Field Designator on Form 1065 Field Name Length
    05CON "In-Care-Of" Name 35
    05FAD Foreign Address 35
    05ADD Street Address 35
    05CTY City 22
    05ST State 2
    05ZIP ZIP Code 12

  2. Invalid Condition - Error Code 016 will generate when the ZIP Code is inconsistent with the Major City Code 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 Command Codes INOLES, NAMEB/NAMEE, ENMOD for valid ZIP Code information.

      If And Then
      Unable to determine a valid ZIP Code from the return or attachment, A valid ZIP Code is found through IDRS research, Enter the valid ZIP Code found in Field 05ZIP.
      Only the first three digits of the ZIP Code can be determined,   Enter "01" in the (4th) and (5th) position.
      A ZIP Code can’t be determined,   Enter the 3 digits followed by 01 of the first ZIP Code listed for the applicable state found in Document 7475. (e.g., 99501 for Alaska).
      The address is in a major city, A Major City Code can be determined, Enter Major City Code in Field 05CTY.
      The address is in a major city, A Major City Code can’t be determined,
      1. Enter the name of the city in Field 05CTY.

      2. Enter the State Code in Field 05ST.

      The address is not in a major city,  
      1. Enter the correct state abbreviation in Field 05ST.

      2. Enter ZIP Code in Field 05ZIP.

    4. APO/DPO/FPO 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 set up new address requirements for APO/DPO/FPO addresses. If an address appears in the old APO/DPO/FPO format, convert to the new state code abbreviation based on the ZIP Code. For example, APO New York, NY 091XX would be, converted to "APO AE 091XX" . Refer to the APO/DPO/FPO conversion chart below:

      ZIP Code State Code
      340 AA
      090 - 098 AE
      962 - 966 AP

Error Code 026 - Tax Period Mismatch

  1. Fields Displayed

    Field Designator Field Name
    CL Clear Code
    01EIN Employer Identification Number
    01TXP Tax Period
    >>>> Tax Period Underprint
    01CCC Computer Condition Code
    01ADC Audit Code

  2. Invalid Condition - Error Code 026 will generate when any of the following conditions are present:

    • The Tax Period underprint does not agree with the month on the EIF.

    • An "F" is not present in Field 01CCC.

  3. Correction Procedures:

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

    2. Correct all misplaced entries, coding and transcription errors.

    3. Partnerships may file 52-53 week returns. A 52-53 week tax year can end 6 days before to 3 days after the end of the month.

      If Then
      Tax year ends up to 3 days after the end of the month, Use the previous month in Field 01TXP.

      Example:

      The end of the tax year is May 2, 2022, then the Tax Period is 202204.

      The year ends 6 days before the end of the month, Use the year ending month in Field 01TXP.

      Example:

      The end of the tax year is April 26, 2022, enter 202204 in Field 01TXP.

    4. See Exhibit 3.12.15-6, Error Code 026 - Error Correction Procedures and for research and correction procedures.

    5. See table below for a list of transaction codes and definitions applicable to possible changes to the fiscal year month.

      Note:

      If TC053 or TC054 is NOT present or pending and there is a Form 1128 attached to the return, then SSPND with Action Code 320 to Entity. Attach Form 4227 with an explanation.

    Transaction Code Definition
    016 Shows a change to various entity data (e.g., filing requirement, Fiscal Year Month (FYM), etc.)
    052 Reverses TC 053, 054 and 055 (manual input)
    053 Approved Form 1128, Application to Adopt, Change, or Retain a Tax Year, to accept change of accounting period.
    054 Retained Fiscal Year Month (FYM) (Rev. Proc. 87-32)
    055 Approved Form 8716, Election to Have a Tax Year Other Than a Required Tax Year
    057 Reversal of TC 054 and 055 (generated)
    058 Denied Form 1128, Application to Adopt, Change, or Retain a Tax Year, to accept change of accounting period.
    059 Denied Form 8716, Election to Have a Tax Year Other Than a Required Tax Year

  4. Acceptable reasons for filing a "Short Period" return include, but are not limited to, the following:

    • IRC 444 - Election of taxable year other than required taxable year.

    • IRC 645 - Certain revocable trusts treated as part of estate.

    • IRC 671 through IRC 679 - Grantors and others treated as substantial owners.

    • IRC 806 - Small life insurance company deduction.

    • Treas. Reg. 1.442-1(b)(2) - Change of Annual Accounting Period.

    • Rev. Proc. 76-10 - Group change to Annual Accounting Period.

    • Rev. Proc. 85-58 - Changes in Accounting Periods and Methods of Accounting.

    • Rev. Proc. 87-32 - Changes in Accounting Periods and Methods of Accounting.

    • Rev. Proc. 2002-38 - Changes in Accounting Periods; Automatic approval for flow through entities.

    • Rev. Proc. 2006-46 - Period of Computation of Taxable Income.

    • IRC 708(b) - Technical Termination

Error Code 026 - Suspense Correction
  1. See Exhibit 3.12.15-7, Error Code 026 - Suspense Correction Procedures, for suspense correction procedures.

  2. If no reply, Rejects will process as follows:

    If Then
    The last Tax Period with a TC 150 is 12 months or more before the tax period of the return
    1. Input TC 474 on REQ77 for the year and month before the beginning month of the Tax Period on Form 1065 and enter 1 for the number of cycles.

      Example:

      If the Tax Period is 202209, use 202109; if the Tax Period is 202211, use 202111.

    2. Input TC 016 on BNCHG (follow local procedures) so that the return will post and TC 474 to suppress the notice.

    3. Enter "3" in Field 01ADC.

    4. Enter "3" in Field 01CCC.

    5. SSPND "420" .

    6. After the return has been held for one cycle, enter a "C" in the Clear Code field.

    The last Tax Period with a TC 150 is less than 12 months before the tax period of the return Enter a "Y" in Field 01CCC.

Error Code 028 - Received Date Missing

  1. Fields Displayed - Error Code 028 will display as follows:

    Field Designator Field Name
    01RCD Received Date
    01CCC Computer Condition Code

  2. Invalid Condition - Error Code 028 will generate when both of the following conditions are present:

    • Computer Condition Code "R" is present.

    • Received Date is not present.

  3. Correction Procedures:

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

      If Then
      CCC "R" , is present, Enter the Received Date in Field 01RCD.
      CCC "R" , is not present, Delete code "R" , from Field 01CCC.
      The return is not"G" Coded,
      1. GTSEC 02 and enter the data in the fields for Section 02 and transmit.

      2. When Error Code 010 generates, enter appropriate fields.

      3. Delete CCC "G" from Field 01CCC.

      The return is correctly "G" Coded, Enter the Received Date in Field 01RCD, determined in the following order:
      1. Earliest legible U.S. Post Office, foreign, or private Delivery Service postmark date.

        Note:

        For certified mail only - If a postmark is not present, look for a "USPS.com Track & Confirm" record that has been attached to the return (should be before the envelope). Use the Acceptance date on the record to determine timeliness, follow normal editing procedures. If the "USPS.com Track & Confirm" record is not attached, no action is required.

      2. Service Center Automated Mail Processing System (SCAMPS) digital date.

      3. Revenue officer’s or other IRS official’s signature date.

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

      5. The DLN Julian Date minus 10 days.

      6. Current date minus 10 days.

        Note:

        Do not consider private metered mail dates as postmark dates unless there is a "PO" or "US-PO" in the date circle.

    2. If multiple dates are on the return, use the earliest date as the Received Date.

      Reminder:

      Received Date should always be present. After determining if the Computer Condition Code is correct, enter the Received Date as part of your correction.

Error Code 034 - Correspondence Received Date Not Valid

  1. Fields Displayed

    Field Designator Field Name
    01TXP Tax Period
    01RCD Received Date
    01CRD Correspondence Received Date

  2. Invalid Condition - Error Code 034 will generate when either of the following conditions are present:

    • The Correspondence Received Date is later than the processing date.

    • Field 01CRD is equal to or earlier than Field 01RCD.

    Note:

    An entry in Field 01CRD does not require an entry in Field 01RCD.

  3. Correction Procedures:

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

    2. The Received Date will either be stamped or edited on the return. If the Received Date is missing or illegible, see table below.

      Received Date missing or illegible, determine in the following order:
      • Legible U.S. Post Office postmarked date.

        Note:

        For certified mail only - If a postmark is not present, look for a "USPS.com Track & Confirm" record that has been attached to the return (should be before the envelope). Use the Acceptance date on the record to determine timeliness, follow normal editing procedures. If the "USPS.com Track & Confirm" record is not attached, no action is required.

      • Postmark date stamped in the margin by Receipt and Control.

      • Signature date (unless other information shows signature date is invalid). This applies to Revenue officers' or other IRS Official’s signature date.

      • The DLN Julian Date minus 10 days.

      • The current date minus 10 days.

      Note:

      Do not consider private metered mail dates as postmark dates unless there is a "PO" or "US-PO" in the date circle.

    3. The Correspondence Received Date will be determined from the date the reply was received at the Campus. Refer to the return for the Correspondence Received Date edited in the entity section of the return. This can be verified by checking the stamped Received Date on the correspondence attached to the return.

      Note:

      If more than one CRD is present, use the CRD that made the return complete and processable.

    If Then
    The Correspondence Received Date is present and later than the processing date, Delete the CRD from Field 01CRD.
    More than one Received Date is present,
    1. If more than one CRD is present, use the CRD that made the return complete and processable.

    2. Enter "3" in Field 01CCC on Form 1065.

Error Code 073 - Fields 01CCC and 01CRD Present

  1. Fields Displayed

    Field Designator Field Name
    01CCC Computer Condition Code
    01CRD Correspondence Received Date

  2. Invalid Condition - Error Code 073 will generate when a "3" is present in Field 01CCC and an entry is present in Field 01CRD.

  3. Correction Procedures:

    1. Correct all misplaced entries, coding and transcription errors.

    2. If IRS correspondence is attached, determine if a reply has been received from the taxpayer.

    If Then
    Reply to correspondence has been received, Delete the "3" in Field 01CCC.
    No reply received, Delete entry in Field 01CRD.

Error Code 702 - Received Date Not Present

  1. Fields Displayed

    Field Designator Field Name
    01RCD Received Date
    01CRD Correspondence Received Date

  2. Invalid Condition - Error Code 702 will generate when the return has been processed through RPS and a Received Date is not present.

  3. Correction Procedures:

    1. Compare the displayed fields with the return. If incorrect, overlay with the correct information.

    2. Determine the Received Date in the following priority:

      Received Date priority:
      • Stamped date on the return

      • Envelope postmark date

        Note:

        For certified mail only - If a postmark is not present, look for a "USPS.com Track & Confirm" record that has been attached to the return (should be before the envelope) Use the Acceptance date on the record to determine timeliness, follow normal editing procedures. If the "USPS.com Track & Confirm" record is not attached, no action is required.

      • Service Center Automated Mail Processing System (SCAMPS) digital date

      • Revenue officer's signature date

      • Taxpayer's signature date if within the current year (unless other information shows the signature date is invalid)

      • DLN Julian date minus 10 days

      • Current date minus 10 days

  4. If more than one CRD is present, use the CRD that made the return complete and processable.

Error Code 725 - Number of Partners and Total Assets Same

  1. Fields Displayed

    Field Designator Field Name
    CL Clear Code
    01NOP Number of Partners
    02TAS Total Assets

  2. Invalid Condition - Error Code 725 will generate when the number of Schedules K-1 and the Total Assets are the same.

  3. Correction Procedures - Compare the displayed fields with the return. If incorrect, overlay with the correct information.

    If Then
    ISRP transcribed Number of Schedules K-1 and/or Total Assets incorrectly, Enter correct amount from the return.
    The return shows that the Number of Schedules K-1 and Total Assets are the same,

    Caution:

    This scenario would be rare.

    Enter a "C" in the Clear Code field.

    Caution:

    Partnerships required to file electronically are assessed large penalties when the Number of Partners field is not correct.

Error Code 726 - Number of Partners and Date Business Started Same

  1. Fields Displayed

    Field Designator Field Name
    CL Clear Code
    01DOB Date Business Started
    01NOP Number of Partners (Number of Schedules K-1)

  2. Invalid Condition - Error Code 726 will generate when the Number of Schedules K-1 and the Date Business Started are the same.

  3. Correction Procedures - Compare the displayed fields with the return. If incorrect, overlay with the correct information.

    If Then
    ISRP transcribed Number of Schedules K-1 and/or Date Business Started incorrectly, Correct the field to agree with the return.
    The return shows that the Number of Schedules K-1 and Date Business Started are the same,

    Caution:

    This scenario would be rare.

    Enter a "C" in the Clear Code field.

    Caution:

    Partnerships required to file electronically are assessed large penalties when the Number of Partners field is not correct.

Error Code 727 - Number of Partners and NAICS Code Same

  1. Fields Displayed

    Field Designator Field Name
    CL Clear Code
    01NAI NAICS Code
    01NOP Number of Partners

  2. Invalid Condition - Error Code 727 will generate when one of the following conditions is present:

    • The Number of Schedules K-1 and the NAICS Code are the same.

    • The Number of Schedules K-1 is greater than 999.

  3. Correction Procedures - Compare the displayed fields with the return. If incorrect, overlay with the correct information.

    If Then
    ISRP transcribed Number of Schedules K-1 and/or NAICS Code incorrectly, Correct the field to agree with the return.
    The return shows that the Number of Schedules K-1 and NAICS Code are the same,

    Caution:

    This scenario would be very rare.

    Enter a "C" in the Clear Code field.

    Caution:

    Partnerships required to file electronically are assessed large penalties when the Number of Partners field is not correct.

    The Number of Schedules K-1 is greater than 999, Enter a "C" in the Clear Code field.

    Caution:

    Partnerships required to file electronically are assessed large penalties when the Number of Partners field is not correct.

Error Code 728 - Number of Partners Invalid

  1. Fields Displayed

    Field Designator Field Name
    CL "X" Clear Code
    01NOP Number of Partners
    01CCC Computer Condition Code

  2. Invalid Condition - The number of Schedules K-1 is "1" and CCC "F" , or "6" is not present.

  3. Correction Procedures:

    1. If the partnership shows that the number of Schedules K-1 is "1" or the attached Schedule K-1 shows 100 percent interest in the partnership, follow the procedures below:

    If Then
    The partnership shows that this is a "Final Return" ,
    1. Enter "2" in Field 01NOP.

    2. Enter "F" in Field 01CCC.

    There is an indication that this is a short length record return (e.g., common trust, 761(a), amended return, nominee, etc.) (IRM 3.12.15.2.14.1), Enter "2" in Field 01NOP for all short length record returns.

    Exception:

    Do not enter a "2" on an amended return. Enter "G" in Field 01CCC.

    Partnership entity section shows
    • Domestic "Limited Partnership" (LP),

    • Domestic "Limited Liability Partnership" (LLP),

    • Domestic "Limited Liability Company" (LLC),

    • "Limited Liability Land Trust" (LLLT), or

    • "Unincorporated Business Organization" (UBO) or

    • "2" , "3" , or "4" is present in Field 01LPC.

    1. Enter CCC "F" in Field 01CCC and "2" in Field 01NOP.

    2. Continue processing.

    3. Advise the taxpayer that we are deleting the partnership filing requirement with a non-suspense letter using Letter 3733C.

    Partnership shows payment to a retired or deceased partner or cites Reg. Section 1.7361, Enter "2" in Field 01NOP.
    None of the above are present, Correspond using Letter 1355C, informing the partnership that they can’t have one 100 percent partner and ask for an explanation.
    The partnership responds stating they are a Limited Partnership, Limited Liability Partnership, Company, Land Trust or Unincorporated Business Organization,
    1. Enter CCC "F" in Field 01CCC.

    2. Advise the taxpayer that we are deleting the partnership filing requirement with a non-suspense letter using Letter 3733C

    3. Continue processing.

    The partnership fails to respond,
    1. Enter "F" in Field 01CCC and "2" in Field 01NOP.

    2. Advise the taxpayer that we are deleting the partnership filing requirement with a non-suspense letter using Letter 3733C.

    3. Continue processing.

Error Code 734 - Total Income and Computer Amounts Differ

  1. Fields Displayed

    Field Designator on Form 1065 Field Name
    0201A Gross Receipts or Sales
    0201B Returns and Allowances
    0201C> Gross Profit - Computer
    0202 Cost of Goods Sold
    0204 Ordinary Income
    0205 Net Farm Profit
    0206 Net Ordinary Gains
    0207 Other Income
    0208 Total Income
    >>>> Total Income - Computer

  2. Invalid Condition - Error Code 734 will generate when the transcribed Total Income amount differs from the Computer's amount ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

  3. Correction Procedures:

    1. Compare the data on the screen with the partnership entries on the return.

    2. Correct all misplaced entries, coding and transcription errors.

    If Then
    The partnership completed a field specific to this error code or calculated the Total Income field incorrectly, Change Field 0208 to agree with the underprint amount.
    Line 8, Total Income is the only entry present,
    1. Verify that the entries on Lines 4 through 7 have been brought forward from schedules and/or attachments.

    2. If the amount is not identified on Lines 4 through 7, enter the amount from Line 8 in Field 0207 and on Line 7 of the return.

    Line 1C has an entry but Lines 1A and 1B are blank, Enter Line 1C amount to Field 0201A.
    Edited correctly, Enter the verified total of Lines 3 through 7 in Field 0208 on the screen and edit Line 8 on the return, if different.

Error Code 736 - Total Deductions and Computer Amounts Differ

  1. Fields Displayed

    Field Designator on Form 1065 Field Name
    0309 Net Salary and Wage
    0310 Payments to Partners
    0311 Repairs and Maintenance
    0312 Bad Debts
    0313 Rent
    0314 Taxes and Licenses
    0315 Interest Expense
    0316C Depreciation
    0317 Depletion
    0318 Retirement Plans
    0319 Employee Benefit Program
    0320 Other Deductions
    0321 Total Deductions
    >>>> Total Deductions - Computer

  2. Invalid Condition - Error Code 736 will generate when the transcribed Total Deductions differs from the computer amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Correction Procedures:

    1. Compare the data on the screen with the partnership entries on the return.

    2. Correct all misplaced entries, coding and transcription errors.

    If Then
    The partnership has failed to complete a field specific to this error code (other than Line 20) or incorrectly calculated the Total Deduction field, Change Field 0321 to agree with the underprint amount.
    Line 20 is not perfected when the only entry present was on Line 21, Enter amount from Line 21 in Field 0320.
    Fields specific to the error code were transcribed incorrectly, Enter correct amount from the return.
    The partnership shows a negative amount on Line(s) 9, 10, 13, 14 or 15,

    Note:

    Follow taxpayer intent by looking at Line 22 before changing Line 20.

    1. "X" the negative amount and subtract on Line 20 of the return.

    2. Delete the negative amount from the corresponding field on the screen.

    3. Enter (the adjusted) amount from Line 20 in Field 0320.

    Line 21, Total Deductions is the only entry present,
    1. Verify that the entries on Lines 9 through 20 have been brought forward correctly from schedules and/or attachments.

    2. If the amount is not identified on Lines 9 through 20, enter the amount from Line 21 in Field 0320 and on Line 20 of the return.

    There are amounts in Line 9 through 20, but an amount is not on Line 21, Enter the verified total of Lines 9 through 20 in Field 0321 on the screen and the return, if different.
    The same income is shown on Form 8825 (Rental Real Estate Income and Expenses of a Partnership or an S Corporation) and on page 1 of Form 1065,
    1. "X" the amounts on page 1,

    2. Edit the Line 21 amount on Form 8825 to Line 2 of Schedule K.

      Note:

      Do not bring deduction amounts forward from Form 8825 to page 1, Form 1065.

Error Code 737 - Publicly Traded Partnership Without Tax

  1. Fields Displayed

    Field Designator Field Name
    CL Clear Code
    01CCC Computer Condition Code
    03TAX 3.5 percent Tax

  2. Invalid Condition - Error Code 737 will generate if the return is identified as a Publicly Traded Partnership (PTP) with Document Code 67 when there is no tax amount written-in above Line 22 of Form 1065 and CCC "F" is not present.

  3. Correction Procedures:

    1. Compare the entry in Field 03TAX to the area above Line 22, Form 1065 and correct any coding or transcription errors.

    2. If Field 03TAX is blank, check return and attachments for the tax computation.

    If Then
    A 3.5 percent tax amount is found on return or attachment,
    1. Edit amount to area above Line 22, Form 1065.

    2. Enter amount in Field 03TAX.

    A 3.5 percent tax amount is not found on return or attachment, Check return for any indication that it is a "Final" return.
    Indication on return that it is a "Final" return, Enter "F" in Field 01CCC.
    No indication that the return is a "Final " return, Enter $1.00 in Field 03TAX.

Error Code 738 - Ordinary Income/Taxable Income and Computer Amounts Differ

  1. Fields Displayed

    Field Designator on Form 1065 Field Name
    0208 Total Income
    >>>> Total Income - Computer
    S03 (Not Present)
    0321 Total Deduction
    >>>> Total Deduction - Computer
    0322 Ordinary Income
    >>>> Ordinary Income - Computer

  2. Invalid Condition - Error Code 738 will generate when the transcribed figure for Ordinary Income differs from the computer amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Correction Procedures:

    1. Compare the entry in Field 0322 (Form 1065) to Line 22 of the return and correct any transcription errors.

      If Then
      The partnership has failed to complete a field specific to this error code or calculated the Ordinary Income field incorrectly, Change Field 0322 to agree with the underprint amount.
      Fields 0208, 0321 or 0322 are transcribed incorrectly, Enter correct amount from the return.
      Line(s) 8, 21 or 22 are edited incorrectly, Correct entry and enter the correct amount in Fields 0208, 0321 or 0322.
      There is an amount present for Ordinary Income on Line 22 but the amount is not identified on Lines 1 through 21,
      1. Edit the amount from Line 22 to Lines 7 and 8.

      2. Enter the amount in Fields 0207 and 0208. Enter as negative amounts if Line 22 amount is negative.

      There are amounts on Lines 1 through 21 but an amount is not on Line 22, Enter the underprint in Field 0322.
      There are no transcription errors and the partnership has made an error in its calculations,
      1. Enter the underprint amount in Field 0322.

      2. Edit an "X" next to the partnership figures on Line 22 of the return.

      3. Enter the correct figure to the left of the "X" .

        Note:

        If the error is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, then see boxes below.

      The error in Ordinary Income ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, Prepare Letter 3733C to inform the partnership of the error in the calculations informing the partnership to be sure to prepare amended Schedules K-1 for the partners in the partnership.

      Reminder:

      This letter is sent to the partnership for information only and does not require a response.

      Exception:

      The partnership does not need to be notified if Total Income is changed due to an amount being moved from page 1, Form 1065 to Schedule K or vice versa.

Error Code 739 - Reserved for future use

  1. This Error Code was previously used for Form 1065-B TETR tax, which is obsolete.

Error Code 999 - End of Year Reformats

  1. Field Displayed

    Field Designator Field Name
    01TXP Tax Period

  2. Invalid Condition - Error Code 999 will generate for all returns that are in error status at the end of the processing year.

  3. Correction Procedure - Since the system will revalidate the record and set validity checks based on next processing year's program, the only correction procedure required for Error Code 999 is for the tax examiner to transmit.

♦Error Code 074 - TETR Inconsistent with Tax Year♦ - Reserved for Future Use

  1. General Information - TETR was used for tax periods 201612 through 200711 and is no longer applicable.

  2. Fields Displayed

    Field Designator on Form 1065 Field Name
    CL Clear Code
    01TXP Tax Period
    20TTR - Reserved for future use Telephone Excise Tax Refund
    20TTI - Reserved for future use Telephone Excise Tax Credit Interest
    03TC> - Reserved for future use Total Telephone Excise Tax Refund - Computer
    03TET> - Reserved for future use Telephone Excise Tax Refund
    03TRV> - Reserved for future use TETR Credit Verified

♦Action Codes♦

  • CE = Code and Edit; EC = Error Correction; S = Suspense Correction; GEN = Computer Generated

    Note:

    IRM 3.12.15.2.11(4) - Temporary Guidance for Action Codes due to processing delays.

Action Code Description Workday Suspense Period Function Used In
001 Input Document 0 GEN
210 EPMF Correspondence 60 EC, S
211 First Taxpayer Correspondence 40 CE, EC, S
212 Second Taxpayer Correspondence 25 CE, EC, S
213 Correspondence to Other Than Taxpayer 40 CE, EC, S
215 International Correspondence 45 CE, EC, S
225 Taxpayer Correspondence (Signature Only) 40 CE, EC, S
226 International Correspondence (Signature Only) 40 CE, EC, S
300 Examination (Fuel Tax Credit) 10 CE, EC, S
310 Statute Control 10 CE, EC, S
320 Entity Control 10 CE, EC, S
331 Frivolous Review 3 CE, EC
332 QRDT (Questionable Refund Detection Team) Review 3 CE, EC
333 Prompt Audit 10 CE, EC, S
334 Joint Committee 10 CE, EC, S
335 Frivolous Case 10 CE, EC, S
336 QRDT Case 10 CE, EC, S
337 Other CID (Criminal Investigation Division) 10 CE, EC, S
341 Manual Refund 10 CE, EC, S
342 Credit Verification 10 CE, EC, S
343 Black Liquor 10 CE, EC, S
344 Manual Refund - ERS 0 EC
351 TIN Research 0 EC, S
352 Name Research 3 CE, EC, S
353 Address Research 3 CE, EC, S
354 Filing Requirements Research 3 CE, EC, S
355 Other MFTRA Research 5 CE, EC, S
360 Other In-House Research 10 CE, EC, S
370 Examination 10 CE, EC, S
410 Assistance Needed 0 EC
420 2006 tax return with Form 8913 credit (TETR) 5 CE, EC, S
430 Management Suspense B 10 CE, EC, S
440 Management Suspense C 15 CE, EC, S
450 Management Suspense D 20 CE, EC, S
460 Management Suspense E 25 CE, EC, S
470 Complex Error Codes 0 EC
480 Early Filed Suspense 150 CE, EC, S
490 System Problem 5 CE, EC, S
510 Missing Document 0 CE
511 Missing Document - 1st Suspense 25 EC, S
512 Missing Document - 2nd Suspense 20 S
513 Missing Document - 3rd Suspense 20 S
515 Missing Document - Short Term 5 EC, S
550 Magnetic Tape Return - Check for Attachments 0 CE
551 Magnetic Tape - Inconsistent Data 0 CE
610 Renumber - Non-Remit 0 CE, EC
611 Renumber - Remit 0 CE, EC
620 NMF/Non-ADP 0 CE, EC, S
630 Reinput 0 EC
640 Void 0 CE, EC, S
650 International 0 CE, EC, S
660 Data Control Delete 0 S
670 Rejected Missing Document 0 S
700 Duplicate Block DLN 0 GEN
711 Duplicate Document DLN from C & E 0 GEN
712 Duplicate Document DLN from Error Correction 0 GEN
713 Duplicate Document DLN from Unpostables 0 GEN
714 Duplicate Document DLN from Unworkable Suspense 0 GEN
715 Duplicate Document DLN from Workable Suspense 0 GEN
800 NAP Linkage Problem 2 EC, S
900 Unpostable Record 0 GEN

Form 1065, U.S. Return of Partnership Income

This is an Image: redimage.gif This is an Image: redimage.gif This is an Image: redimage.gif This is an Image: redimage.gif This is an Image: redimage.gif This is an Image: redimage.gif This is an Image: redimage.gif This is an Image: redimage.gif This is an Image: redimage.gif This is an Image: redimage.gif

♦U.S. Possessions ZIP Codes♦

American Samoa (AS)

American Samoa (AS) City American Samoa (AS) ZIP Code
Faga'itua 96799
Leone 96799
Olosega Manua' 96799
Pago Pago 96799
 

Federated States of Micronesia (FM)

Federated States of Micronesia (FM) City Federated States of Micronesia (FM) ZIP Code
Chuuk 96942
Kosrae 96944
Pohnpei 96941
Yap 96943
 

Guam (GU)

Guam (GU) City Guam (GU) ZIP Code
Agana 96910
Inarajan 96917
Merizo 96916
Tamuning 96931
Umatac 96915
Yona 96915
 

Marshall Islands (MH)

Marshall Islands (MH) City Marshall Islands (MH) ZIP Code
Ebeye 96970
Majuro 96960
 

Northern Marianna Islands (MP)

Northern Marianna Islands (MP) City Northern Marianna Islands (MP) ZIP Code
Capitol Hill 96950
Rota 96951
Saipan 96950
Tinian 96952
 

Palau (PW)

Palau (PW) City Palau (PW) ZIP Code
Koror 96940
Palau 96940
 

Puerto Rico (PR)

Puerto Rico (PR) City Puerto Rico (PR) ZIP Code
Adjuntas 00601
Aguada 00602
Aguadilla 00603
Aguas Buenas 00703
Aguirre 00704
Aibonito 00705
Anasco 00610
Angeles 00611
Arecibo 00612
Arroyo 00714
Bajadero 00616
Barceloneta 00617
Barranquitas 00794
Barrio Obrero Station 00935
Bayamon 00956
Boqueron 00622
Cabo Rojo 00623
Caguas 00725
Camuy 00627
Canovanas 00729
Caparra Heights 00920
Carolina 00982
Catano 00962
Cayey 00736
Ceiba 00735
Cerro Gordo 00754
Ciales 00638
Cidra 00739
Coamo 00769
Comerio 00782
Condado 00907
Corozal 00783
Coto Laurel 00780
Culebra 00775
Dorado 00646
Ensenada 00647
Esperanza 00765
Fajardo 00738
Fernandez Juncos 00936
Florida 00650
Fort Buchanan 00934
Garrachales 00652
Guanica 00653
Guayama 00784
Guayanilla 00656
Guaynabo 00965
Gurabo 00778
Hatillo 00659
Hato Rey 00936
Hormigueros 00660
Humacao 00791
Isabela 00662
Jayuya 00664
Juana Diaz 00795
Juncos 00777
La Cumbre 00926
Lajas 00667
La Plata 00786
Lares 00669
Las Marias 00670
Las Piedras 00771
Levittown 00949
Loiza 00772
Loiza Street Station 00936
Luquillo 00773
Manati 00674
Maricao 00606
Maunabo 00707
Mayaguez 00680
Mercedita 00715
Minillas Center 00936
Moca 00676
Morovis 00687
Naguabo 00718
Naranjito 00719
Orocovis 00720
Palmer 00721
Patillas 00723
Penuelas 00624
Ponce 00731
Puerta de Tierra 00936
Puerta Real 00740
Punta Santiago 00741
Quebradillas 00678
Ramey 00603
Rincon 00677
Rio Blanco 00744
Rio Grande 00721
Rio Piedras 00927
Rosario 00636
Sabana Grande 00637
Sabana Hoyos 00688
Sabana Seca 00952
Saint Just 00978
Salinas 00751
San Antonio 00690
San Francisco 00927
San German 00683
San Juan 00936
San Lorenzo 00754
San Sebastian 00685
Santa Isabel 00757
Santurce 00936
Toa Alta 00953
Toa Baja 00949
Trujillo Alto 00976
University 00936
Utuado 00641
Vega Alta 00692
Vega Baja (Box 1 - 9049) 00694
Vieques 00765
Villalba 00766
Yabucoa 00767
Yauco 00698
 

Virgin Islands - U.S. (VI)

Virgin Islands - U.S. (VI) City Virgin Islands - U.S. (VI) ZIP Code
Charlotte Amalie 00802
Christiansted 00820
Cruz Bay 00830
Downtown 00840
Frederiksted 00840
Kingshill 00850
Saint Croix 00820
Saint John 00830
Saint Thomas 00805
Sunny Isle 00850
Veterans Annes 00820

♦Province, Foreign State and Territory Abbreviations♦

Australia State

Australia State Abbreviation
Australian Capital Territory ACT
New South Wales NSW
Northern Territory NT
Queensland QLD
South Australia SA
Tasmania TAS
Victoria VIC
Western Australia WA
 

Brazil State

Brazil State Abbreviation
Acre AC
Alagoas AL
Amapa AP
Amazonas AM
Bahia BA
Ceara CE
Distrito Federal DF
Espirito Santo ES
Goias GO
Maranhao MA
Mato Grasso MT
Mato Grosso do